BULL & BEAR U.S. AND OVERSEAS FUND ANNUAL REPORT
February 15, 1996
Fellow Shareowners:
We are very pleased to report that Bull & Bear U.S. and Overseas Fund
achieved a total return of +25.11% for 1995. It is gratifying to note that our
performance was sharply ahead of the Lipper Global Fund Index total return of
+14.02%, and compared favorably with the +20.70% total return of the Morgan
Stanley Capital International World Index. The Fund's strategy of investing
primarily in North America, Europe and Scandinavia, as well as concentrating in
technology issues for much of the year contributed significantly to the Fund's
strong 1995 performance.
We believe the Fund's approach, investing worldwide for the highest
possible total return on its assets from long term growth of capital and from
income, makes it an interesting and attractive choice for investors seeking the
advantages and greater flexibility that global investing provides. In this
regard, it is a pleasure to welcome our many new shareowners who have joined us
since our last Report by opening regular, Gifts/Transfers to Minors and
qualified retirement plan accounts.
Chart follows: U.S. & Overseas Fund
Results of an initial investment of $10,000 with subsequent investments of $100
a month from inception, October 29, 1987, through December 31, 1995 with
dividends and capital gain distributions reinvested. Investments for the period
total $19,800.
Plot points: $10.1, $11.7, $14.9, $14.7, $19.4, $20.1, $26.8, $24.4, $31.9.
Ending Value: $31,887
As noted in our last Report, currency and global stock markets were
experiencing considerable turmoil as 1995 began. While the
<PAGE>
U.S. stock market was recovering sharply, European stock markets weakened,
reflecting higher interest rates and slowing economic growth. European
currencies, however, strengthened significantly against the dollar, as was true
also for Scandinavian countries, where stock markets remained generally stable
to higher. The Mexican peso devaluation led to a market collapse there, as well
as in Argentina and Brazil, as fears of further devaluations and other economic
problems spread throughout South America. In addition, the Japanese stock market
fell sharply as efforts to revive growth continued to fail. Pacific Rim markets
in general also weakened as internal monetary and fiscal tightening caused a
loss of investor confidence. As we approached mid-year, however, global
fundamentals began to improve, Mexican rescue efforts appeared to be successful,
and Argentina and Brazil successfully weathered the financial crisis triggered
by Mexico's near collapse.
The sharp slowdown in U.S. economic growth in the first half of 1995
increased expectations of a shift by the Federal Reserve from credit creation
restraint toward ease, which did come in early July. This led to the dollar
beginning to stabilize versus other major currencies, setting the stage for
reduced global interest rate pressures and increasing prospects for global
economic progress in 1996. With the U.S. market leading the way, most equity
markets around the world rallied strongly during the second half of 1995, with
particular strength in emerging markets at year- end.
With prospects for a continued recovery of emerging markets in 1996, we
have increased the Fund's exposure to these markets significantly, while
continuing to have a substantial investment in U.S. securities. Overall, we
believe 1996 will be another good year for numerous capital gains opportunities.
We therefore see this as an attractive time to add to your investment. In
terms of seeking to achieve your long range financial goals, we especially favor
building your account on a regular basis, which can be done safely,
automatically and
<PAGE>
conveniently through the Bull & Bear Bank Transfer Plan, the Bull & Bear Salary
Investing Plan and the Bull & Bear Government Direct Deposit Plan. For
information on these free services, simply give us a call and we will help you
get started.
If you have any questions or would like information on any of the Bull &
Bear Funds, the Bull & Bear No-Fee IRA(R) or opening a discount brokerage
account at Bull & Bear Securities, where you can earn American Airlines(R)
AAdvantage(R) Miles on every trade, we would be very pleased to hear from you.
Just call 1-800-847-4200, and an Investor Service Representative will be glad to
assist you, as always, without any obligation on your part.
Sincerely,
Robert D. Anderson Brett B. Sneed, CFA
Vice Chairman Senior Vice President
Portfolio Manager
Total Return Performance Graphs
* Bull & Bear U.S. and Overseas Fund ("Fund")
* Morgan Stanley Capital International World
Index ("MSCI")
* Lipper Global Fund Index (LGFI)
An index is unmanaged and fully invested in common stocks. The Fund may invest
in any type of U.S. or foreign security, including Eurodollar securities, and
engage in options, futures and forward currency transactions. The fund's
inception was October 29, 1987. The $10,000 Performance Graphs begin on October
31, 1987 and results in each case reflect reinvestment of dividends and
distributions.
[The following table was represented as a graph with the following plot points
in the printed material.]
Plot points:
Fund: $9.9, $10.7, $11.9, $10.9, $13.4, $13.0, $16.5, $14.3, $17.9
MSCI: $10.2, $12.6, $14.8, $12.3, $14.7, $14.0, $17.2, $18.2, $22.1
LGFI: $10.3, $11.8, $14.4, $13.1, $15.7, $15.7, $20.9, $20.4, $23.3
Average
Final Total Annual
Value Return Return
----- ------ ------
Fund ............ 17,923 79.23% 7.38%
MSCI ............ 22,091 120.91% 10.19%
LGFI ............ 23,260 132.60% 10.89%
<PAGE>
<TABLE>
<S> <C> <C>
====================================================================================================================================
INCOME FUNDS - o Bull & Bear A high quality money market fund investing in U.S.
MONEY MARKET, Dollar Reserves Government securities. Income is generally free from
U.S. GOVERNMENT, state income and intangible property taxes. ( For Bull
MUNICIPAL AND & Bear Performance Plus(sm) discount brokerage
GLOBAL accounts, the check writing minimum is $100.)
--------------------------------------------------------------------------------------------------------
o Monthly o Bull & Bear Investing for a high level of current income, liquidity
Dividends U.S. Government and safety of principal.
o Free, Unlimited Securities Fund
Check Writing --------------------------------------------------------------------------------------------------------
($250 minimum o Bull & Bear Investing for the highest possible income exempt from
per check) Municipal Income Fund Federal income tax that is consistent with preservation
of principal.
--------------------------------------------------------------------------------------------------------
o Bull & Bear Investing for a high level of income from a global
Global Income Fund portfolio of primarily investment grade fixed income
securities.
====================================================================================================================================
GROWTH FUNDS - o Bull & Bear Invests worldwide for the highest possible total return.
U.S., GLOBAL U.S. and Overseas Fund
AND PRECIOUS --------------------------------------------------------------------------------------------------------
METALS o Bull & Bear Invests aggressively for maximum capital appreciation.
Special Equities Fund
--------------------------------------------------------------------------------------------------------
o Bull & Bear Seeks long term capital appreciation in investments
Gold Investors with the potential to provide a hedge against inflation
and preserve the purchasing power of the dollar.
--------------------------------------------------------------------------------------------------------
Call our toll-free number for a prospectus containing more complete information, including
charges and expenses. Please read it carefully before you invest.
====================================================================================================================================
DISCOUNT o Bull & Bear Investors receive the investment information they need
BROKERAGE Securities, Inc. and the low commissions they expect. Commission
SERVICES savings of up to 84% and more over full cost firms
and guaranteed 20% lower than Charles Schwab &
Co. on every stock, bond and option trade.
(Transactions are subject to a low $31 minimum
commission; comparisons are based on a January 1996
survey of standard telephone orders; full cost firms
and larger discount brokers may offer additional
Call Toll Free services not available from Bull & Bear Securities and
1-800-VIP-4200 rates may vary markedly for other types of products.)
--------------------------------------------------------------------------------------------------------
Total Return Performance. For the periods ended December 31, 1995, Bull & Bear U.S. and
Overseas Fund's total return for one year was 25.11%, average annual total return for
the past five years was 10.46%, and for the life of the Fund (from October 29, 1987)
was 7.38%. 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.
</TABLE>
<PAGE>
BULL & BEAR U.S. AND OVERSEAS FUND
Schedule of Portfolio Investments - December 31, 1995
Shares
Market Value
COMMON AND PREFERRED STOCKS (97.2%)
Argentina (3.4%)
9,000 Buenos Aires Embotelladora ADR......................... $ 185,625
11,000 Quilmes Industries S.A................................. 171,600
-----------
357,225
-----------
Brazil (2.2%)
5,000 Telecomunicacoes Brasileiras ADR....................... 236,875
-----------
Canada (8.5%)
25,000 Mitel Corp.*........................................... 162,500
8,000 Seagrams Co. Ltd....................................... 277,000
95,000 Tesco Corp.*........................................... 461,472
-----------
900,972
-----------
Germany (7.0%)
4,000 Moebel Walther Pfd..................................... 131,351
4,000 SAP A.G. Pfd........................................... 608,687
-----------
740,038
-----------
Ireland (4.1%)
9,000 Elan Corp. PLC ADR*.................................... 437,625
-----------
Israel (2.2%)
5,000 Teva Pharmaceutical Industries Ltd. ADR................ 231,875
-----------
Mexico (1.9%)
9,000 Grupo Televisa......................................... 202,500
-----------
Netherlands (3.4%)
8,000 Madge N.V.*............................................ 358,000
-----------
Norway (2.4%)
8,000 Nera AS - Telecom ADR*................................. 260,000
-----------
Sweden (1.7%)
9,000 Volvo Akliebolaget ADR................................. 185,343
-----------
<PAGE>
Shares
Market Value
United Kingdom (6.9%)
5,000 Reuters Holdings PLC ADR............................... $ 275,625
45,373 J.D. Wetherspoon PLC Ord............................... 452,260
-----------
727,885
-----------
United States (53.5%)
7,000 Accent Software International*......................... 164,500
50,000 AmeriCredit Corp.*..................................... 681,250
32,000 Ameridata Technologies Inc.*........................... 308,000
13,000 Brite Voice Systems, Inc.*............................. 180,375
10,000 Cheyenne Software, Inc.*............................... 261,250
10,000 Circon Corp.*.......................................... 202,500
20,000 Global Pharmaceutical Corp.*........................... 200,000
8,000 Healthsouth Corp.*..................................... 233,000
14,000 Longhorn Steaks Inc.*.................................. 248,500
7,000 Medisense Inc.*........................................ 221,375
10,000 Mercury Interactive Corp.*............................. 182,500
8,000 Mobile Telecommunication Technologies Corp.*........... 171,000
18,000 Neoprobe Corp.*........................................ 290,250
5,000 Network Equipment Technologies Inc.*................... 136,875
5,500 Newbridge Network Corp.*............................... 227,563
14,000 Olicom A/S*............................................ 213,500
14,000 Platinum Technology Inc.*.............................. 257,250
8,000 Sofamor/Denek Group, Inc.*............................. 227,000
19,500 System Software Associates, Inc........................ 424,125
14,000 20th Century Industries*............................... 278,250
10,000 Total Renal Care Holdings*............................. 295,000
14,000 Utah Medical Products Inc.*............................ 277,375
-----------
5,681,438
-----------
Total Common and Preferred Stocks (cost: $8,745,812) 10,319,776
-----------
Par Value U.S. Government Agency (2.8%)
- ---------
$295,000 Federal National Mortgage Assn.,
due 1/5/96 (cost: $294,820) ..................... 294,820
-----------
Total Investments (cost: $9,040,632) (100.0%).. $10,614,596
===========
* Indicates non-income producing security.
See accompanying notes to financial statements.
U.S. and Overseas Fund
<PAGE>
STATEMENT OF ASSETS AND LIABILITIES
December 31, 1995
ASSETS:
Investments at market value (cost: $9,040,632) (note 1) ..... $ 10,614,596
Cash ........................................................ 4,285
Receivables:
Investment securities sold ................................ 20,564
Dividends ................................................. 8,618
Fund shares sold .......................................... 3,294
------------
Total assets ........................................... 10,651,357
------------
LIABILITIES:
Payables:
Fund shares purchased ..................................... 514,681
Investment securities purchased ........................... 269,125
Accrued management and distribution fees .................... 9,636
Accrued expenses ............................................ 50,136
------------
Total liabilities ...................................... 843,578
------------
NET ASSETS: (applicable to 1,173,429 outstanding shares:
250,000,000 shares of $.01 par value authorized) ............ $ 9,807,779
============
NET ASSET VALUE, OFFERING AND REDEMPTION PRICE PER SHARE
($9,807,779 / 1,173,429) .................................... $ 8.36
============
At December 31, 1995, net assets consisted of:
Paid-in capital ............................................. $ 8,251,242
Accumulated net realized loss on investments ................ (17,859)
Net unrealized appreciation on investments and
foreign currencies ........................................ 1,574,396
------------
$ 9,807,779
============
See accompanying notes to financial statements.
U.S. and Overseas Fund
<PAGE>
STATEMENT OF OPERATIONS
Year Ended December 31, 1995
INVESTMENT INCOME:
Dividends (net of foreign taxes of $6,060) .................. $ 63,812
Interest .................................................... 3,045
-----------
66,857
-----------
EXPENSES:
Distribution (note 3) ....................................... 96,684
Investment management (note 3) .............................. 96,092
Transfer agent .............................................. 40,178
Professional (note 3) ....................................... 34,913
Registration (note 3) ....................................... 32,884
Custodian ................................................... 31,843
Shareholder administration (note 3) ......................... 19,919
Interest (note 5) ........................................... 4,645
Directors ................................................... 2,329
Other ....................................................... 16,360
-----------
Total expenses ............................................ 375,847
Custodian credits (note 4) ................................ (5,612)
Expenses reimbursed (note 3) .............................. (27,939)
-----------
Net expenses .............................................. 342,296
-----------
Net investment income (loss) .............................. (275,439)
-----------
REALIZED AND UNREALIZED GAIN ON INVESTMENTS AND FOREIGN CURRENCIES:
Net realized gain from foreign currency transactions ........ 1,302
Net realized gain from security transactions ................ 823,207
Unrealized appreciation of investments and foreign
currencies during the period ............................. 1,481,881
-----------
Net realized and unrealized gain on investments and
foreign currencies ...................................... 2,306,390
-----------
Net increase in net assets resulting from operations ...... $ 2,030,951
===========
See accompanying notes to financial statements.
U.S. and Overseas Fund
<PAGE>
STATEMENT OF CHANGES IN NET ASSETS
For the Years Ended December 31,
<TABLE>
<CAPTION>
1995 1994
------------ ------------
<S> <C> <C>
OPERATIONS:
Net investment income (loss) ............................................................. $ (275,439) $ (165,116)
Net realized gain (loss) from foreign currency transactions .............................. 1,302 (209,085)
Net realized gain from security transactions ............................................. 823,207 539,801
Unrealized appreciation (depreciation) of investments during the period .................. 1,481,881 (1,603,906)
------------ ------------
Net change in net assets resulting from operations ..................................... 2,030,951 (1,438,306)
DISTRIBUTIONS TO SHAREHOLDERS:
Distribution from net realized gains ($.49 and $.49 per share, respectively) ............. (574,671) (543,721)
CAPITAL SHARE TRANSACTIONS:
Decrease in net assets resulting from capital share transactions (a) ..................... (102,570) (1,813,982)
------------ ------------
Total change in net assets ............................................................. 1,353,710 (3,796,009)
NET ASSETS:
Beginning of period ...................................................................... 8,454,069 12,250,078
------------ ------------
End of period ............................................................................ $ 9,807,779 $ 8,454,069
============ ============
</TABLE>
- --------------
(a) Transactions in capital shares were as follows:
<TABLE>
<CAPTION>
1995 1994
--------------------------------- ---------------------------------
Shares Value Shares Value
------------ ------------ ------------ ------------
<S> <C> <C> <C> <C>
Shares sold .................................... 1,764,028 $ 13,899,838 2,214,062 $ 18,179,561
Shares issued in reinvestment of
distributions ................................. 64,553 531,253 71,808 506,249
Shares redeemed ................................ (1,848,587) (14,533,661) (2,499,029) (20,499,792)
------------ ------------ ------------ ------------
Net decrease ................................... (20,006) $ (102,570) (213,159) $ (1,813,982)
============ ============ ============ ============
</TABLE>
See accompanying notes to financial statements.
U.S. and Overseas Fund
<PAGE>
Notes to Financial Statements
(1) The Fund is a non-diversified series of common stock of Bull & Bear Funds I,
Inc. (the "Company"), which is registered under the Investment Company Act of
1940, as amended, as an open-end management investment company. Bull & Bear
Quality Growth Fund is the other series of the Company. The Fund's investment
objective is to seek the highest possible total return on its assets from long
term growth of capital and from income principally through a portfolio of
securities of U.S. and overseas issuers. 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, unless
over-the-counter quotations for such securities are believed to more closely
reflect their fair value, 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,
securities traded in the over-the-counter market that are not on NMS, and
foreign securities are valued at the mean between the current bid and asked
prices. Securities of foreign issuers denominated in foreign currencies are
translated into U.S. dollars at prevailing exchange rates. 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. Debt obligations with remaining maturities of 60 days or less are
valued at cost adjusted for amortization of premiums and accretion of discounts.
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 $9,058,490, gross unrealized appreciation and gross unrealized
depreciation were $2,138,349 and $582,243 at December 31, 1995. Distributions
paid to shareholders during the year ended December 31, 1995 differ from net
realized gains from security transactions as determined for financial reporting
purposes principally as a result of the characterization of realized foreign
currency gains (losses) for tax/book purposes and wash sales.
(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 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 undertaken that the operating expenses of the Fund for
each fiscal year (including management fees but excluding taxes, interest,
brokerage commissions and distribution plan expenses), expressed as a percentage
of average daily net assets, will not exceed the lowest rate prescribed by any
state in which shares of the Fund are qualified for sale. Currently such
limitation is 2 1/2% of the first $30 million of such assets, 2% of the next $70
million and 1 1/2% of the remaining net assets. If the Fund's expenses exceed
such rates, the Investment Manager will reimburse the Fund for any excess.
Reimbursement for the year ended December 31, 1995 was $27,939. Certain officers
and directors of the Fund are officers and directors of the Investment Manager
and Investor Service Center, Inc. (formerly Bull & Bear Service Center, Inc.),
the Fund's Distributor. For the year ended December 31, 1995, the Fund paid
$4,422 to Bull & Bear Securities, Inc., an affiliate of the Investment Manager,
as commissions for brokerage services. The Fund reimbursed the Investment
Manager $11,376 for providing certain administrative and accounting services at
cost during the year ended December 31, 1995.
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 $19,919 for shareholder administration services supplied to
the Fund at cost for the year ended December 31, 1995.
(4) Purchases and sales of securities other than short term notes aggregated
$20,377,014 and $20,717,304 respectively, for the year ended December 31, 1995.
Under an agreement with the custodian bank, custodian fees are reduced by
credits for cash balances. Such reductions amounted to $5,612 during the year
ended December 31, 1995.
(5) The Fund had an uncommitted bank line of credit for temporary or emergency
purposes which expired. For the year ended December 31, 1995, the weighted
average interest rate was 8.7% based on the balances outstanding during the year
and the
U.S. and Overseas Fund
<PAGE>
weighted average amount outstanding was $47,539.
(6) The Board of Directors has approved an Agreement and Plan of Reorganization
and Termination (the "Reorganization Agreement"), under which the Bull & Bear
Quality Growth Fund ("Quality Growth") would be merged into the Fund. Approval
of the Reorganization Agreement will be submitted to the shareholders of Quality
Growth for their meeting scheduled in April, 1996.
U.S. and Overseas Fund
<PAGE>
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
Years Ended December 31,
-----------------------------------------------------------------
PER SHARE DATA* 1995 1994 1993 1992 1991
---------- ---------- ---------- ---------- ----------
<S> <C> <C> <C> <C> <C>
Net asset value at beginning of period ........................ $ 7.08 $ 8.71 $ 7.59 $ 8.37 $ 7.62
---------- ---------- ---------- ---------- ----------
Income from investment operations:
Net investment income (loss) ................................ (.23) (.13) (.20) .04 .07
Net realized and unrealized gain (loss) on investments ...... 2.00 (1.01) 2.22 (.25) 1.64
---------- ---------- ---------- ---------- ----------
Total from investment operations .......................... 1.77 (1.14) 2.02 (.21) 1.71
---------- ---------- ---------- ---------- ----------
Less distributions:
Distributions from net realized gains on investments ........ (.49) (.49) (.90) (.57) (.96)
---------- ---------- ---------- ---------- ----------
Net asset value at end of period .............................. $ 8.36 $ 7.08 $ 8.71 $ 7.59 $ 8.37
========== ========== ========== ========== ==========
TOTAL RETURN .................................................. 25.11% (13.12)% 26.71% (2.57)% 22.55%
========== ========== ========== ========== ==========
RATIOS/SUPPLEMENTAL DATA
Net assets at end of period (000's omitted) ................... $ 9,808 $ 8,454 $ 12,250 $ 9,229 $ 1,275
========== ========== ========== ========== ==========
Ratio of expenses to average net assets (a)(b) ................ 3.55% 3.53% 3.55% 3.56% 3.56%
========== ========== ========== ========== ==========
Ratio of net investment income (loss) to average net assets (c) (2.85)% (1.65)% (2.36)% .51% .90%
========== ========== ========== ========== ==========
Portfolio turnover rate ....................................... 214% 212% 182% 175% 208%
========== ========== ========== ========== ==========
</TABLE>
* Per share net investment income (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.
The financial highlights for 1991 have been restated to reflect the 100%
stock dividend effective February 24, 1992.
(a) Ratio prior to reimbursement by the Investment Manager was 3.84%, 3.59%,
3.69%, 4.09% and 13.35% for the years ended December 31, 1995, 1994, 1993,
1992, and 1991, respectively.
(b) Ratio after the reduction of custodian fees under a custodian agreement was
3.49%. Prior to 1995, such reductions were reflected in the expense ratios.
(c) Ratio prior to reimbursement by the Investment Manager was (3.14)%,
(1.71)%, (2.50)%, (0.02)% and (8.89)% for the years ended December 31,
1995, 1994, 1993, 1992 and 1991, respectively.
U.S. and Overseas Fund
<PAGE>
REPORT OF INDEPENDENT CERTIFIED PUBLIC ACCOUNTANTS
The Board of Directors and Shareholders of
Bull & Bear U.S. and Overseas Fund:
We have audited the accompanying statement of assets and liabilities of
Bull & Bear U.S. and Overseas Fund, including the schedule of portfolio
investments as of December 31, 1995, and the related statement of operations for
the year then ended, the statement of changes in net assets for each of the two
years in the period then ended, and the financial highlights for each of the
five years in the period then ended. These financial statements and financial
highlights are the responsibility of the Fund's management. Our responsibility
is to express an opinion on these financial statements and financial highlights
based on our audit.
We conducted our audit 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, 1995, by correspondence with the custodian and brokers. An audit
also includes assessing the accounting principles used and significant estimates
made by management, as well as evaluating the overall financial statements
presentation. We believe that our audit provides 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 U.S. and Overseas Fund as of December 31, 1995, the results of its
operations for the year then ended, the changes in its net assets for each of
the two years in the period then ended, and the financial highlights for each of
the five years in the period then ended, in conformity with generally accepted
accounting principles.
TAIT, WELLER & BAKER
Philadelphia, Pennsylvania
January 19, 1996
U.S. and Overseas Fund
