<PAGE>
SPECIAL EQUITIES FUND
================================================================================
11 Hanover Square, New York, NY 10005
1-888-503-FUND for Investment Information
1-888-503-VOICE for Shareholder Services
www.mutualfunds.net
August 15, 1997
Fellow Shareholders:
As noted in the December 31, 1996 Annual Report, investment decisions for
the Fund have since February 20, 1997 been made by the Investment Policy
Committee of Bull & Bear Advisers, Inc., the Fund's Investment Manager. In the
first quarter of 1997, the Fund had a negative total return of -13.63%, compared
to the Lipper Capital Appreciation Funds Index which had a negative total return
of -3.26%. In the second quarter, however, we are pleased to report that the
Fund had steadily improving results, with a positive total return of +16.39%
versus only +13.87% for the Lipper Index. In addition, the Fund's improvement is
reflected in statistics from Lipper Analytical Services, Inc., which show the
Fund's ranking in its category steadily rising from the quarter ended March 31,
1997 to the quarter ended June 30, 1997, and again through the three months
ended July 31, 1997. We are very encouraged by what has been achieved thus far,
and we hope to be able to continue to reward our shareholders in the future by
maintaining the disciplined investment approach responsible for these gratifying
results.
Review and Outlook
The first half of 1997 benefitted from a "Goldilocks" economy -- not too
hot and not too cold -- with moderate inflation, rising corporate earnings, a
steady string of new highs in almost all stock market indices and, despite the
0.25% hike in interest rates by the Federal Reserve in March, a period of
relatively low and generally stable interest rates. In addition, individual and
institutional investors continued both directly and indirectly to invest
substantial amounts of new money in the stock markets.
Interest rates rose in the first quarter, reflecting concerns about the
inflationary impact of strong economic growth and tight labor markets. The first
- --------------------------------------------------------------------------------
Special Equities Fund
Results of an initial investment of $10,000 with
subsequent investments of $100 a month from inception,
3/20/86, through 6/30/97 with all distributions
reinvested. Investments for the period total $23,500.
[GRAPHIC OMITTED]
- --------------------------------------------------------------------------------
<PAGE>
quarter's 5.9% increase in economic activity was the fastest rate of expansion
since 1983, and the unemployment rate fell to 4.8%, a level not seen since 1973.
And prior to increasing short term rates by 0.25% in March, ending one of the
longest periods of unchanged rates in recent history, Federal Reserve Chairman
Alan Greenspan expressed his concern regarding potentially inflationary economic
scenarios in his semi-annual "Humphrey-Hawkins" testimony before Congress.
Yields on 30 year Treasury securities, which started the year at 6 5/8%, rose to
over 7 1/8% by early April. Following encouraging monthly data releases in the
second quarter regarding inflation and the slowing pace of the economy, yields
on 30 year Treasuries fell to as low as 6 1/2%.
Looking ahead, we believe that over the balance of the year and into 1998,
inflation will remain in check and the economy will experience generally
moderate levels of growth. With the combination of this favorable economic
background and our disciplined approach to selecting investments, we expect the
Fund will continue to provide improving results for its shareholders.
To take advantage of this, we recommend building your account on a regular
basis, which can be done safely, automatically and conveniently through the Bull
& Bear Bank Transfer Plan, the Bull & Bear Salary Investing Plan, and/or the
Bull & Bear Government Direct Deposit Plan. For information on any of these free
services, simply give us a call and we will be very pleased to 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, as described on page 3, we would be pleased
to hear from you. Just call toll-free at 1-888-503-FUND (1-888-503-3863), and an
Investor Service Representative will be glad to assist you, as always, with no
obligation on your part.
Sincerely,
/s/ Robert D. Anderson /s/ Thomas B. Winmill
Robert D. Anderson Thomas B. Winmill
Vice Chairman President
2
<PAGE>
Bull & Bear_____________________________________________________________________
Performance Driven (R)
================================================================================
MUTUAL FUNDS
o Bull & Bear A high quality money market fund
Dollar Reserves 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.
- --------------------------------------------------------------------------------
o Bull & Bear Seeks long term capital appreciation in
Gold Investors investments with the potential to
provide a hedge against inflation and
preserve the purchasing power of the
dollar.
- --------------------------------------------------------------------------------
o Bull & Bear Invests aggressively for maximum capital
Special Equities Fund appreciation.
- --------------------------------------------------------------------------------
o Bull & Bear Invests worldwide for the highest
U.S. and Overseas Fund possible total return.
- --------------------------------------------------------------------------------
Call toll-free 1-888-503-FUND (1-888-503-3863) for a prospectus containing more
complete information, including charges and expenses. Please read it carefully
before you invest.
================================================================================
CLOSED-END INVESTMENT COMPANIES LISTED ON THE AMERICAN STOCK EXCHANGE
o Bull & Bear Investing for a high level of income
Global Income Fund from a global portfolio of primarily
investment grade fixed income
securities.
o Bull & Bear Investing for the highest possible
Municipal Income Fund income exempt from Federal income tax
that is consistent with preservation of
principal.
o Bull & Bear Investing for a high level of current
U.S. Government income, liquidity, and safety of
Securities Fund principal.
================================================================================
DISCOUNT BROKERAGE SERVICES
o Bull & Bear Bull & Bear Securities is committed to
Securities, Inc. providing investors with major
commission savings, free investment
ideas and services, free cash management
services with no minimum for check
writing, and American Airlines(R)
AAdvantage(R) miles for many of your
investing activities. And now you can
take advantage of Bull & Bear
Securities' web trading flat commission
rate of $19.95 per trade at
www.ebullbear.com on the first 1,000
shares, plus 2(cents) per share on each
share over 1,000 shares, and earn 200
AAdvantage(R) miles every time you
trade!
Call toll-free 1-800-BULL-BEAR
(1-800-285-5232).
- --------------------------------------------------------------------------------
Total Return Performance. For periods ended 6/30/97, Bull & Bear Special
Equities Fund's total return for one year was a negative 5.79%, average annual
total return for the past five years was 12.02%, for the past ten years was
7.79%, and since inception, 3/20/86, was 9.95%. 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.
3
<PAGE>
BULL & BEAR SPECIAL EQUITIES FUND, INC.
Schedule of Portfolio Investments - June 30, 1997 (Unaudited)
Shares Market Value
- ------ ------------
COMMON STOCKS AND WARRANTS (100%)
Abrasive Asbestos and Misc. Nonmetalic Mineral
Products (3.1%)
15,000 Minnesota Mining and Manufacturing Company............... $ 1,530,000
-----------
Ball and Roller Bearings (1.1%)
18,750 Gardner Denver Machinery, Inc.*.......................... 557,812
-----------
Biological Products (1.7%)
13,900 Amgen, Inc.*............................................. 807,938
-----------
Bottled and Canned Soft Drinks Carbonated Waters (0.9%)
39,500 National Beverage Corporation*........................... 414,750
-----------
Carpets and Rugs (0.8%)
18,400 Interface, Inc. Class A.................................. 407,100
-----------
Chemical Products (0.1%)
1,400 Macdermid, Inc........................................... 64,225
-----------
Commercial Banks (6.6%)
15,000 Banco de Santander....................................... 464,063
5,900 Banco Bilbao Vizcaya..................................... 477,162
11,600 Banco Ganadero........................................... 417,600
13,500 J.P. Morgan and Company.................................. 1,409,063
9,800 Royal Bank of Canada..................................... 444,675
-----------
3,212,563
-----------
Computer Communications Equipment (2.2%)
15,800 Cisco Systems, Inc.*..................................... 1,060,575
-----------
Computer Peripheral Equipment (0.9%)
18,400 Pomeroy Computer Resources, Inc.*........................ 455,400
-----------
Computer Programming Services (1.4%)
18,000 Computer Task Group, Inc................................. 670,500
-----------
Converted Paper and Paperboard Products (1.4%)
23,850 Mail-Well, Inc.*......................................... 679,725
-----------
Dairy Products (1.1%)
18,800 Morningstar Group, Inc.*................................. 552,250
-----------
Death Care (1.0%)
10,000 Hillenbrand Industries, Inc.............................. 475,000
-----------
Drawing and Insulating Nonferrous Wire (0.9%)
16,000 AFC Cable Systems, Inc.*................................. 432,000
-----------
Drilling Oil and Gas Wells (1.0%)
27,000 Key Energy Group, Inc.*.................................. 480,938
-----------
See accompanying notes to financial statements.
4
<PAGE>
Shares Market Value
- ------ ------------
Drug Stores and Propriety Stores (0.8%)
19,000 Genovese Drug Stores, Inc................................ $ 374,062
-----------
Eating Places (1.3%)
20,200 CKERestaurants, Inc...................................... 638,825
-----------
Electric Lighting and Wiring Equipment (1.0%)
19,800 Chicago Miniature Lamp, Inc.*............................ 492,525
-----------
Electronic Computers (4.9%)
11,300 Dell Computer Corporation*............................... 1,327,044
27,800 Sun Microsystems, Inc.*.................................. 1,034,680
-----------
2,361,724
-----------
Electronic Parts and Equipment (1.0%)
14,500 Bright Point, Inc.*...................................... 472,156
-----------
Family Clothing Store (1.0%)
17,600 Goodys Family Clothing, Inc.*............................ 481,800
-----------
Food and Tobacco Products (3.1%)
34,500 Philip Morris Companies, Inc............................. 1,530,938
-----------
General Medical and Surgical Hospitals (1.1%)
14,400 Quorum Health Group, Inc.*............................... 514,800
-----------
Grocery Stores (0.8%)
8,800 Safeway, Inc.*........................................... 405,900
-----------
Help Supply Services (0.9%)
9,100 Volt Information Sciences, Inc........................... 459,550
-----------
Hospital and Medical Service Plans (0.9%)
12,500 United Wisconsin Services, Inc........................... 421,094
-----------
Hotels and Motels (0.9%)
19,600 La Quinta Inns, Inc.*.................................... 428,750
-----------
Life Insurance (0.9%)
11,424 Delphi Financial Group, Inc.*............................ 439,824
-----------
Metal Forgings and Stampings (1.0%)
10,900 Tower Automotive, Inc.*.................................. 468,700
-----------
Miscellaneous Amusement and Recreation (1.3%)
13,300 Anchor Gaming*........................................... 635,075
-----------
Miscellaneous Shopping Goods Stores (1.1%)
19,000 Fabri-Centers of America, Inc.*.......................... 517,750
-----------
See accompanying notes to financial statements.
5
<PAGE>
Shares Market Value
- ------ ------------
Motor Vehicles and Passenger Car Bodies (2.9%)
25,000 General Motors Corporation............................... $1,392,188
-----------
Motor Vehicle Parts and Accesories (0.9%)
22,500 Excel Industries, Inc.................................... 438,750
-----------
Office Furniture (0.9%)
12,300 Miller (Herman), Inc..................................... 442,800
-----------
Paper Mills (3.2%)
32,000 International Paper Company.............................. 1,554,000
-----------
Petroleum Refining (6.7%)
27,000 Exxon Corporation........................................ 1,660,500
21,500 Chevron Corporation...................................... 1,589,656
-----------
3,250,156
-----------
Plastic Mail, Synthetic Resin/Rubber, Cellulose (3.3%)
25,600 duPont (E.I.) de Nemours & Company....................... 1,609,600
-----------
Prepackaged Software (4.2%)
8,300 Microsoft Corporation*................................... 1,048,912
20,200 Oracle Corporation....................................... 1,017,575
-----------
2,066,487
-----------
Printed Circuit Boards (2.6%)
6,600 Jabil Circuit, Inc.*..................................... 553,575
12,400 Plexus Corporation*...................................... 692,075
-----------
1,245,650
-----------
Radio and TV Broadcasting and Communications
Equipment (0.9%)
6,100 Nokia Corporation........................................ 449,875
-----------
Real Estate Investment Trusts (1.0%)
18,500 Walden Residential Properties, Inc....................... 474,063
-----------
Refrigeration Equipment (1.1%)
20,100 Chart Industries, Inc.................................... 550,237
-----------
Savings Institiutions, Not Federally Chartered (0.9%)
18,600 First Republic Bancorp, Inc.*............................ 432,450
-----------
Secondary Smelting and Refining of Nonferrous
Metals (0.8%)
21,800 IMCO Recycling, Inc...................................... 411,475
-----------
Security Brokers, Dealers and Flotation Companies (0.9%)
15,700 Raymond James Financial, Inc............................. 429,787
-----------
Semiconductors and Related Devices (1.6%)
5,500 Intel Corporation........................................ 779,969
-----------
Special Industry Machinery (2.2%)
15,400 Applied Materials, Inc.*................................. 1,090,512
-----------
See accompanying notes to financial statements.
6
<PAGE>
Shares Market Value
- ------ ------------
Specialty Outpatient Facilities (1.4%)
39,500 American Oncology Resources, Inc.*....................... $ 666,562
-----------
Steel Pipe and Tubes (2.7%)
17,600 Lone Star Technologies, Inc.*............................ 503,800
21,600 Maverick Tube Corporation*............................... 810,000
-----------
1,313,800
-----------
Telephone Communications (6.6%)
36,000 A T & T Corporation...................................... 1,262,250
22,000 MCI Communications Corporation........................... 842,186
35,000 Worldcom, Inc.*.......................................... 1,120,000
-----------
3,224,436
-----------
Tires and Innertubes (3.3%)
25,000 Goodyear Tire & Rubber Company........................... 1,582,813
-----------
Variety Stores (1.9%)
15,300 Family Dollar Stores, Inc................................ 416,925
24,600 Tuesday Morning Corporation*............................. 495,075
-----------
912,000
-----------
Water Transportation (1.0%)
12,000 Carnival Corporation..................................... 495,000
-----------
Womens Clothing (0.9%)
27,400 Paul Harris Stores, Inc.*................................ 458,950
-----------
Women's, Misses', and Juniors' Outerwear (0.9%)
16,400 Kellwood Company......................................... 455,100
-----------
Wood Household Furniture (1.0%)
9,000 Ethan Allen Manufacturing Corporation.................... 513,000
-----------
Total Investments (cost: $42,424,060) (100%)........ $48,683,909
===========
- ----------
* Indicates non-income producing security.
See accompanying notes to financial statements.
7
<PAGE>
STATEMENT OF ASSETS AND LIABILITIES
June 30, 1997 (Unaudited)
ASSETS:
Investments at market value
(cost: $42,424,060) (note 1) ............ $ 48,683,909
Receivables:
Dividends ............................... 81,509
Fund shares sold ........................ 585
Other assets ............................. 5,625
------------
Total assets ......................... 48,771,628
------------
LIABILITIES:
Payables:
Demand note payable to bank (note 5) .... 2,816,287
Fund shares redeemed .................... 56,915
Accrued expenses .......................... 63,183
Accrued management and
distribution fees ....................... 36,716
------------
Total liabilities .................... 2,973,101
------------
NET ASSETS: (applicable to 1,984,089
outstanding shares: 500,000,000 shares
of $.01 par value authorized) ............ $ 45,798,527
============
NET ASSET VALUE, OFFERING AND
REDEMPTION PRICE PER SHARE
($45,798,527 / 1,984,089) ................ $23.08
======
At June 30, 1997, net assets consisted of:
Paid-in capital .......................... 42,434,427
Accumulated deficit in net investment
income .................................. (369,944)
Accumulated net realized loss on
investments ............................. (2,525,805)
Net unrealized appreciation on investments 6,259,849
------------
$ 45,798,527
============
STATEMENT OF OPERATIONS
Six Months Ended June 30, 1997 (Unaudited)
INVESTMENT INCOME:
Dividends ............................. $ 222,478
Interest .............................. 63,424
-----------
Total investment income ............ 285,902
-----------
EXPENSES:
Distribution (note 3) ................. 223,760
Investment management (note 3) ........ 192,615
Interest (note 5) ..................... 82,767
Transfer agent ........................ 36,649
Custodian ............................. 32,728
Shareholder administration (note 3) ... 28,808
Professional (note 3) ................. 27,168
Registration (note 3) ................. 13,090
Printing .............................. 7,924
Directors ............................. 4,214
Other ................................. 6,123
-----------
Total expenses ..................... 655,846
-----------
Net investment loss ................ (369,944)
-----------
REALIZED AND UNREALIZED GAIN
(LOSS) ON INVESTMENTS:
Net realized loss from security
transactions ......................... (2,485,302)
Unrealized appreciation of investments
during the period .................... 2,947,313
-----------
Net realized and unrealized gain on
investments ....................... 462,011
-----------
Net increase in net assets resulting
from operations ................... $ 92,067
===========
See accompanying notes to financial statements.
8
<PAGE>
STATEMENTS OF CHANGES IN NET ASSETS
For the Six Months Ended June 30, 1997 (Unaudited)
and the Year Ended December 31, 1996
<TABLE>
<CAPTION>
June 30 December 31,
1997 1996
------------ ------------
<S> <C> <C>
OPERATIONS:
Net investment loss ................................................... $ (369,944) $ (1,539,055)
Net realized gain (loss) from security transactions ................... (2,485,302) 6,803,639
Unrealized appreciation (depreciation) of investments during the period 2,947,313 (4,862,889)
------------ ------------
Net increase in net assets resulting from operations ................. 92,067 401,695
DISTRIBUTIONS TO SHAREHOLDERS:
Distribution from net realized gains ($2.72 per share in 1996) ....... -- (5,342,284)
CAPITAL SHARE TRANSACTIONS:
Decrease in net assets resulting from capital share transactions (a) .. (4,133,459) (1,559,043)
------------ ------------
Total decrease in net assets ......................................... (4,041,392) (6,499,632)
NET ASSETS:
Beginning of period ................................................... 49,839,919 56,339,551
------------ ------------
End of period (including accumulated deficit in net
investment income of $369,944 in 1997) .............................. $ 45,798,527 $ 49,839,919
============ ============
</TABLE>
- ----------
(a) Transactions in capital shares were as follows:
<TABLE>
<CAPTION>
June 30, 1997 December 31, 1996
---------------------- -----------------------
Shares Value Shares Value
-------- ----------- -------- ------------
<S> <C> <C> <C> <C>
Shares sold .................................. 87,342 $ 1,951,743 564,667 $ 14,997,930
Shares issued in reinvestment of distributions -- -- 216,965 4,957,636
Shares redeemed .............................. (274,323) (6,085,202) (826,992) (21,514,609)
-------- ----------- -------- ------------
Net decrease ................................. (186,981) $(4,133,459) (45,360) $ (1,559,043)
======== =========== ======== ============
</TABLE>
See accompanying notes to financial statements.
9
<PAGE>
Notes to Financial Statements
(Unaudited)
(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 capital appreciation. The Fund
seeks capital appreciation by investing aggressively as set forth in the
prospectus, depending on the assessment of economic and market factors, in
equity securities, warrants, convertible securities and debt instruments. 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, securities traded on a national securities exchange and
securities traded on the Nasdaq National Market System ("NMS") are valued at the
last reported sales price on the day the valuations are made. Such securities
that are not traded on a particular day and securities traded in the
over-the-counter market that are not on NMS are valued at the mean between the
current bid and asked prices. Securities for which quotations are not readily
available and other assets are valued at fair value as determined in good faith
by or under the direction of the Board of Directors. Securities denominated in
foreign currencies are translated into U.S. dollars at prevailing exchange
rates. Debt obligations with remaining maturities of 60 days or less are valued
at cost adjusted for amortization of premiums and accretion of discounts.
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. Investment transactions are accounted for on the trade
date (date the order to buy or sell is executed). Dividend income and
distributions to shareholders are recorded on the ex-dividend date and interest
income is recorded on the accrual basis. 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 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 on Federal income
tax cost of $42,424,060, gross unrealized appreciation and gross unrealized
depreciation were $6,728,239 and $468,390, respectively at June 30, 1997.
Distributions paid to shareholders during the year ended December 31, 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 and net operating losses to offset short-term capital gains.
(3) The Fund retains Bull & Bear Advisers, Inc. as its Investment Manager. Under
the Investment Management Agreement, the Investment Manager receives a
management fee, payable monthly, based on the average daily net assets of the
Fund at the annual rate of 1% on the first $10 million, 7/8 of 1% from $10
million to $30 million, 3/4 of 1% from $30 million to $150 million, 5/8 of 1%
from $150 million 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. Certain officers and directors of the Fund are officers and
directors of the Investment Manager and Investor Service Center, Inc., the
Fund's Distributor. For the six months ended June 30, 1997, the Fund paid
$94,080 to Bull & Bear Securities, Inc., an affiliate of the Investment Manager
as commissions for brokerage services. The Fund reimbursed the Investment
Manager $9,237 for providing certain administrative and accounting services at
cost for the six months ended June 30, 1997.
10
<PAGE>
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 $28,808 for shareholder administration services which it
provided to the Fund at cost for the six months ended June 30, 1997.
(4) Purchases and proceeds of sales of securities other than short term notes
aggregated $75,616,696 and $89,909,096, respectively.
(5) The Fund has a committed bank line of credit. At June 30, 1997, the balance
outstanding was $2,816,287 and the interest rate was equal to the Federal
Reserve Funds Rate plus 1.75 percentage points. For the six months ended June
30, 1997, the weighted average interest rate was 7.13% based on the balances
outstanding during the period and the weighted average amount outstanding was
$2,249,064. Included in interest expense is $1,714 for commitment fees related
to this line of credit.
----------
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
Six Months Ended Years Ended December 31,
June 30, 1997 ----------------------------------------------------
(Unaudited) 1996 1995 1994 1993 1992
---------------- ------- ------- ------- ------- --------
<S> <C> <C> <C> <C> <C> <C>
PER SHARE DATA*
Net asset value at beginning of period .................. $ 22.96 $ 25.42 $ 19.11 $ 23.13 $ 24.88 $ 19.38
------- ------- ------- ------- ------- -------
Income from investment operations:
Net investment loss ................................... (.18) (.73) (.81) (.55) (.76) (.58)
Net realized and unrealized gain (loss) on investments: .30 .99 8.51 (3.28) 4.65 6.08
------- ------- ------- ------- ------- -------
Total from investment operations .................... .12 .26 7.70 (3.83) 3.89 5.50
------- ------- ------- ------- ------- -------
Less distributions:
Distributions from net realized gains on investments .. -- (2.72) (1.39) (.19) (5.64) --
------- ------- ------- ------- ------- -------
Net increase (decrease) in net asset value ............ .12 (2.46) 6.31 (4.02) (1.75) 5.50
======= ======= ======= ======= ======= =======
Net asset value at end of period ........................ $ 23.08 $ 22.96 $ 25.42 $ 19.11 $ 23.13 $ 24.88
======= ======= ======= ======= ======= =======
TOTAL RETURN ............................................ 0.5% 1.0% 40.5% (16.5)% 16.4% 28.4%
======= ======= ======= ======= ======= =======
RATIOS/SUPPLEMENTAL DATA
Net assets at end of period (000's omitted) ............. $45,799 $49,840 $56,340 $45,614 $73,957 $68,314
======= ======= ======= ======= ======= =======
Ratio of expenses to average net assets (a) ............. 2.57%** 2.45% 2.88% 2.92% 2.74% 3.07%
======= ======= ======= ======= ======= =======
Ratio of net investment loss to average net assets ...... 1.29%** 2.81% 2.70% 2.43% 2.73% 2.78%
======= ======= ======= ======= ======= =======
Portfolio turnover rate ................................. 170% 311% 319% 309% 256% 261%
======= ======= ======= ======= ======= =======
Average commission per share ............................ $ .0444 $ .0714
======= =======
</TABLE>
* Per share net investment loss and net realized 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) Ratio including interest expense were 2.93%, 2.92% and 3.67% for the six
months ended June 30, 1997 and for the years ended December 31, 1996 and
1995, respectively.
11
<PAGE>
SPECIAL
EQUITIES
FUND
================================================================================
For Fund prospectuses and other
investment information, call toll-free
1-888-503-FUND
1-888-503-3863
For shareholder services by
Direct Access, call toll-free
1-888-503-VOICE
1-888-503-8642
Or, access the Fund on the web at
www.mutualfunds.net
- --------------------------------------------------------------------------------
Printed on recycled paper [Logo]
This report and the financial statements contained herein are submitted for the
general information of the shareholders of the Fund. The report is not
authorized for distribution to prospective investors in the Fund unless preceded
or accompanied by an effective Prospectus.
SPECIAL
EQUITIES
FUND
================================================================================
Invests Aggressively
for Maximum Capital
Appreciation
- --------------------------------------------------------------------------------
Semi-Annual Report
June 30, 1997
BULL & BEAR_____________________________________________________________________
Performance Driven(R)
