PATHFINDER FUND
* * * *
Annual Report
November 1, 1995 - October 31, 1996
A NOTE FROM YOUR FUND'S PRESIDENT
Fiscal year 1996 (November 1, 1995 - October 31, 1996) was a wild
roller coaster ride which ended with our Fund up 15.6% as
microcaps, midcaps and, finally, large caps enjoyed their days in
the sun.
1997 -- The Year of the Microcap? Maybe. A lot of "Gurus" think
so. We share that opinion. We have worked hard to position the
Fund's portfolio to participate aggressively in a "microcap
market."
At this writing, the Fund's Manager (including its officers and
directors) owns over 15% of the Fund.
/s/ Ed Bernstein
PATHFINDER FUND
Schedule of Investments
October 31, 1996
Shares Market Value
COMMON STOCKS (101.08%)
BIO-TECH (5.08%)
17,000 Synbiotics Corporation $ 70,125
8,000 Synthetech, Inc. 59,000
1,500 TECHNE Corporation 35,625
Total . . . . . . . . . . . . . 164,750
COMMUNICATIONS (6.03%)
7,500 Alpine Group (The), Inc. 54,375
4,000 Applied Signal Technology, Inc. 19,000
2,000 Comdial Corporation 14,000
4,000 EMCEE Broadcast Products 24,000
11,000 Micronetics Wireless, Inc. 20,969
5,000 Microwave Power Devices, Inc. 15,000
8,000 TII Industries, Inc. 48,000
Total . . . . . . . . . . . . . 195,344
COMPUTER-RELATED SERVICES/EQIPMENT (11.15%)
10,000 ATEC Group, Inc. 7,500
45,000 AW Computer Systems, Inc. 61,875
9,000 Ault Incorporated 78,750
20,000 Canterbury Corporate Services 23,125
11,000 Cognitronics 48,813
8,000 Computer Outsourcing Services 26,500
2,000 GenRad, Inc. 40,500
22,000 Mitek Systems, Inc. 74,250
Total . . . . . . . . . . . . . 361,313
ELECTRONICS (3.34%)
39,500 All American Semiconductor 49,375
29,000 DCX, Inc. 58,906
Total . . . . . . . . . . . . . 108,281
FOOD (2.89%)
15,000 Hain Food Group (The), Inc. 51,563
5,000 Hansen Natural Corporation 6,406
5,000 Skyline Chili, Inc. 26,250
3,000 Vestro Natural Foods, Inc. 9,375
Total . . . . . . . . . . . . . 93,594
GAMING (1.01%)
8,600 American Bingo & Gaming 13,438
7,000 Casino Resource Corporation 12,468
3,000 Lady Luck Gaming Corp. 6,750
Total . . . . . . . . . . . . . 32,656
HEALTH/BEAUTY/RECREATION/ENTERTAINMENT (14.02%)
16,800 ARC International Corp. 65,100
3,800 Aloette Cosmetics, Inc. 15,200
3,500 Ballantyne of Omaha, Inc. 57,750
1,000 BeautiControl Cosmetics, Inc.* 12,500
34,000 CCA Industries, Inc. 72,250
4,000 CML Group, Inc.* 19,500
5,000 California Pro Sports, Inc. 10,625
9,000 Intellect Comm. Systems, Ltd. 55,125
5,000 PTI Holding, Inc. 48,750
18,400 Parlux Fragrances, Inc. 79,350
750 Regis Corp.* 18,187
Total . . . . . . . . . . . . . 454,337
HEALTHCARE (4.47%)
2,900 Caretenders HealthCorp. 18,850
19,000 Star Multi Care Services, Inc. 125,875
Total . . . . . . . . . . . . . 144,725
RETAIL (3.34%)
35,000 Audio King Corporation 52,500
8,000 Bon-Ton Stores (The), Inc. 44,000
1,500 S & K Famous Brands, Inc. 11,625
Total . . . . . . . . . . . . . 108,125
INSTRUMENTATION/MEASURING/CONTROL (3.77%)
1,000 Microfluidics 1,625
1,000 PPT Vision, Inc. 8,375
15,000 Plasma-Therm, Inc. 46,875
18,000 Spectrum Control, Inc. 65,250
Total . . . . . . . . . . . . . 122,125
MANUFACTURING (20.91%)
22,000 Allied Devices Corp. 58,438
4,000 Arrow-Magnolia International 17,250
10,000 Aztec Manufacturing Co.* 70,000
9,000 Calnetics Corporation 61,875
31,500 Dmi Furniture, Inc. 70,875
25,000 Devlieg-Bullard, Inc. 57,813
3,500 Genlyte Group 33,687
4,000 Hirsch Initernational Group 72,000
5,000 K-Tron International Corp. 49,375
9,200 Nortech Systems, Inc. 59,800
10,000 PVC Container* 32,500
2,000 Sudbury, Inc. 22,500
30,000 U.S. Home & Garden, Inc. 71,250
Total . . . . . . . . . . . . . 677,363
MEDICAL PRODUCTS/SERVICES (20.09%)
40,000 Advanced Orthopedic Tech. 110,000
9,900 Arrhythmia Research Tech. 32,175
29,000 Biomerica, Inc. 119,625
20,000 Colorado MEDtech, Inc. 62,500
8,800 Hanger Orthopedic Group 56,100
11,100 Imex Medical Systems, Inc. 9,366
5,000 Int'l. Remote Imaging Systems 23,125
9,000 Mesa Laboratories, Inc. 57,375
1,000 OEC Medical Systems, Inc. 13,125
8,000 Palomar Medical Technologies 58,000
12,700 Pro-Dex 43,656
2,000 Theragenics Corp. 34,000
10,000 Trimedyne Incorporated 31,875
Total . . . . . . . . . . . . . 650,922
TEMPORARY STAFFING SERVICES (1.30%)
4,000 Hospital Staffing Services 9,000
7,600 Joule', Inc. 33,250
Total . . . . . . . . . . . . . 42,250
TRANSPORTATION (1.81%)
5,000 CHC Helicopter* 19,375
8,080 OTR Express, Inc. 39,390
Total . . . . . . . . . . . . . 58,765
OTHER (1.87%)
6,000 Artistic Greetings, Inc. 27,750
2,000 Baker (Michael) Corp. 11,500
1,500 Iona Appliances Inc. 11,484
4,000 Seibels Bruch Group (The), Inc. 9,750
Total . . . . . . . . . . . . . 60,484
Total Investments in Securities
(Cost $3,376,452)** 101.80 % 3,275,034
Liabilities in Excess of
of Other Assets (1.08)% (34,955)
Total Net Assets 100.00 % $ 3,240,079
====== =========
* Income-producing security
** Cost for federal income tax purposes is the same, and
net unrealized depreciation consists of:
Gross Unrealized Appreciation 366,952
Gross Unrealized Depreciation (468,370)
Net Unrealized Depreciation $ (101,418)
=======
See Notes to Financial Statements
PATHFINDER FUND
Statement of Assets and Liabilities
October 31, 1996
ASSETS:
Investments in securities, at value
(identified cost $3,376,452)
(Notes 2A and 3). . . . . . . . . . . . . $ 3,275,034
Receivables:
Capital Shares Sold 8,350
Investment securities sold. . . . . . . . 48,549
Prepaid expenses and other . . . . . . . . . . 5,450
Total Assets. . . . . . . . . . . . . . . 3,337,383
LIABILITIES:
Cash deficit . . . . . . . . . . . . . . . . . 21,012
Payables:
Investment securities purchased . . . . . 30,000
Capital shares redeemed . . . . . . . . . 35,760
Accrued expenses . . . . . . . . . . . . . . . 10,532
Total Liabilities . . . . . . . . . . . . 97,304
NET ASSETS . . . . . . . . . . . . . . . . . . $ 3,240,079
=========
Net asset value, offering and redemption
price per share
($3,240,079 / 359,775 shares). . . . . . . . $ 9.01
====
At October 31, 1996 the components of
net assets were as follows:
Paid-in capital . . . . . . . . . . . . . $ 2,938,773
Accumulated net realized gains
on investments. . . . . . . . . . . . . 402,724
Net unrealized depreciation
of investments. . . . . . . . . . . . . (101,418)
Net Assets . . . . . . . . . . . . . $ 3,240,079
=========
See Notes to Financial Statements
PATHFINDER FUND
Statement of Operations
for the Year Ended October 31, 1996
INVESTMENT INCOME:
Income:
Dividends . . . . . . . . . . . . . . . $ 4,764
Interest . . . . . . . . . . . . . . . . 2,750
Total income. . . . . . . . . . . . 7,514
Expenses:
Investment Advisory Fee (Note 4) . . . . 26,353
Transfer Agent . . . . . . . . . . . . . 18,716
Custody. . . . . . . . . . . . . . . . . 8,036
Professional Fees. . . . . . . . . . . . 13,619
Insurance. . . . . . . . . . . . . . . . 6,712
Accounting and Pricing . . . . . . . . . 14,380
Printing . . . . . . . . . . . . . . . . 1,500
Trustee Fees . . . . . . . . . . . . . . 6,163
Registration Fees. . . . . . . . . . . . 13,555
109,034
Less reimbursement of expenses. . . . . . . . 79,203
Net expenses . . . . . . . . . . . . . . 29,831
Net investment loss . . . . . . . . (22,317)
REALIZED AND UNREALIZED
GAIN ON INVESTMENTS
Net realized gain on
investment securities. . . . . . . . . . 402,712
Net increase (decrease) in
unrealized appreciation of
investment securities. . . . . . . . . . (437,841)
Net loss on investments . . . . . . (35,129)
Net decrease in net assets
resulting from operations . . . . $ (57,446)
======
See Notes to Financial Statements
PATHFINDER FUND
Statement of Changes in Net Assets
Year ended Year ended
Oct. 31, 1996 Oct. 31, 1995
Operations:
Net investment loss. . . . . $ (22,317) $ (17,081)
Net realized gain on
investment securities. . . 402,712 324,462
Net change in unrealized
appreciation (depreciation)
of investment securities. . . (437,841) 148,453
Net increase (decrease)
in net assets resulting
from operations. . . . . . (57,446) 455,834
Distributions from
net realized gains
($0.62 and $0.00,
respectively). . . . . . . (157,391) --
Capital Share transactions:
Shares sold. . . . . . . . 7,507,422 640,641
Shares reinvested. . . . . 143,904 --
Shares redeemed. . . . . . (6,379,070) (1,545,570)
Net increase (decrease)
from capital share
transactions (a) . . . . . 1,272,256 (904,929)
Total increase (decrease)
in net assets. . . . . . 1,057,419 (449,095)
Net assets at the beginning
of the period. . . . . . . 2,182,660 2,631,755
Net assets at the end
of the period. . . . . . . $3,240,079 $2,182,660
========= =========
(a) A summary of capital
share transactions
(number of shares) is
as follows:
Shares sold. . . . . . . 710,337 81,726
Shares reinvested. . . . 18,332 --
Shares redeemed. . . . . (628,412) (205,527)
Net increase (decrease). . 100,257 (123,801)
======== =======
See Notes to Financial Statements
PATHFINDER FUND
_________________________________________________________________
FINANCIAL HIGHLIGHTS
_________________________________________________________________
Year ended
October 31, 1996
PER SHARE DATA
Net asset value at beginning of period. . . . $ 8.41
Income from investment operations
Net investment income (loss). . . . . . . . . (.07)
Net realized and unrealized gain (loss)
on investments. . . . . . . . . . . . . . . 1.29
Total from investment operations. . . . . 1.22
Less distributions
Distributions from realized gains . . . . . . (.62)
Distributions from paid-in capital. . . . . . --
Total dividends and distributions. . . . . (.62)
Net asset value at end of period. . . . . . . $ 9.01
====
TOTAL RETURN 15.60 %
RATIOS / SUPPLEMENTAL DATA
Net assets at end of period
(000's omitted) . . . . . . . . . . . . . . 3,240
Ratio of expenses to average
net assets (a). . . . . . . . . . . . . . . .99 %
Ratio of net investment income
(loss) to average net assets (b) . . . . . . (0.74)%
Portfolio turnover rate . . . . . . . . . . . 118.55 %
Average commission rate per share . . . . . . 2.97 cents
Borrowings for the period:
Amount of debt outstanding
at the end of period (c). . . . . . . . . --
Average amount of debt
outstanding during the period (c) . . . . --
Average number of shares
outstanding during the period
(000's omitted) (c) . . . . . . . . . . . 317
Average amount of debt per
share during the period (c) . . . . . . . --
Year ended
October 31, 1995
PER SHARE DATA
Net asset value at beginning of period. . . . $ 6.87
Income from investment operations
Net investment income (loss). . . . . . . . . (.05)
Net realized and unrealized gain (loss)
on investments. . . . . . . . . . . . . . . 1.59
Total from investment operations. . . . . 1.54
Less distributions
Distributions from realized gains . . . . . . --
Distributions from paid-in capital. . . . . . --
Total dividends and distributions. . . . . --
Net asset value at end of period. . . . . . . $ 8.41
====
TOTAL RETURN 22.42 %
RATIOS / SUPPLEMENTAL DATA
Net assets at end of period
(000's omitted) . . . . . . . . . . . . . . 2,183
Ratio of expenses to average
net assets (a). . . . . . . . . . . . . . . 1.19 %
Ratio of net investment income
(loss) to average net assets (b) . . . . . . (0.72)%
Portfolio turnover rate . . . . . . . . . . . 59.89 %
Average commission rate per share . . . . . . --
Borrowings for the period:
Amount of debt outstanding
at the end of period (c). . . . . . . . . --
Average amount of debt
outstanding during the period (c) . . . . --
Average number of shares
outstanding during the period
(000's omitted) (c) . . . . . . . . . . . 327
Average amount of debt per
share during the period (c) . . . . . . . --
Year ended
October 31, 1994
PER SHARE DATA
Net asset value at beginning of period. . . . $ 7.34
Income from investment operations
Net investment income (loss). . . . . . . . . (.39)
Net realized and unrealized gain (loss)
on investments. . . . . . . . . . . . . . . .27
Total from investment operations. . . . . (.12)
Less distributions
Distributions from realized gains . . . . . . --
Distributions from paid-in capital. . . . . . (.35)
Total dividends and distributions. . . . . (.35)
Net asset value at end of period. . . . . . . $ 6.87
====
TOTAL RETURN (1.57)%
RATIOS / SUPPLEMENTAL DATA
Net assets at end of period
(000's omitted) . . . . . . . . . . . . . . 2,632
Ratio of expenses to average
net assets (a). . . . . . . . . . . . . . . 6.19 %
Ratio of net investment income
(loss) to average net assets (b) . . . . . . (5.56)%
Portfolio turnover rate . . . . . . . . . . . 89.62 %
Average commission rate per share . . . . . . --
Borrowings for the period:
Amount of debt outstanding
at the end of period (c). . . . . . . . . --
Average amount of debt
outstanding during the period (c) . . . . --
Average number of shares
outstanding during the period
(000's omitted) (c) . . . . . . . . . . . 456
Average amount of debt per
share during the period (c) . . . . . . . --
Year ended
October 31, 1993
PER SHARE DATA
Net asset value at beginning of period. . . . $ 6.29
Income from investment operations
Net investment income (loss). . . . . . . . . (.29)
Net realized and unrealized gain (loss)
on investments. . . . . . . . . . . . . . . 1.65
Total from investment operations. . . . . 1.36
Less distributions
Distributions from realized gains . . . . . . --
Distributions from paid-in capital. . . . . . (.31)
Total dividends and distributions. . . . . (.31)
Net asset value at end of period. . . . . . . $ 7.34
====
TOTAL RETURN 21.80 %
RATIOS / SUPPLEMENTAL DATA
Net assets at end of period
(000's omitted) . . . . . . . . . . . . . . 4,002
Ratio of expenses to average
net assets (a). . . . . . . . . . . . . . . 4.41 %
Ratio of net investment income
(loss) to average net assets (b) . . . . . . (4.15)%
Portfolio turnover rate . . . . . . . . . . . 71.02 %
Average commission rate per share . . . . . . --
Borrowings for the period:
Amount of debt outstanding
at the end of period (c). . . . . . . . . --
Average amount of debt
outstanding during the period (c) . . . . 449,873
Average number of shares
outstanding during the period
(000's omitted) (c) . . . . . . . . . . . 945
Average amount of debt per
share during the period (c) . . . . . . . $ 0.48
Year ended
October 31, 1992
PER SHARE DATA
Net asset value at beginning of period. . . . $ 7.42
Income from investment operations
Net investment income (loss). . . . . . . . . (.25)
Net realized and unrealized gain (loss)
on investments. . . . . . . . . . . . . . . (.88)
Total from investment operations. . . . . (1.13)
Less distributions
Distributions from realized gains . . . . . . --
Distributions from paid-in capital. . . . . . --
Total dividends and distributions. . . . . --
Net asset value at end of period. . . . . . . $ 6.29
====
TOTAL RETURN (15.23)%
RATIOS / SUPPLEMENTAL DATA
Net assets at end of period
(000's omitted) . . . . . . . . . . . . . . 8,913
Ratio of expenses to average
net assets (a). . . . . . . . . . . . . . . 3.83%
Ratio of net investment income
(loss) to average net assets (b) . . . . . . (3.48)%
Portfolio turnover rate . . . . . . . . . . . 81.32 %
Average commission rate per share . . . . . . --
Borrowings for the period:
Amount of debt outstanding
at the end of period (c). . . . . . . . . 1,740,000
Average amount of debt
outstanding during the period (c) . . . . 2,098,675
Average number of shares
outstanding during the period
(000's omitted) (c) . . . . . . . . . . . 1,728
Average amount of debt per
share during the period (c) . . . . . . . $ 1.21
(a) Ratio of expenses to average net assets prior to fee waiver
and expense reimbursement by the Adviser was 3.62%, 3.29%, 7.06%,
4.42%, and 3.83%, respectively.
(b) Ratio of net investment income (loss) to average net assets
prior to fee waiver and expense reimbursement by the Adviser was
(3.37)%, (2.83)%, (6.44)%, (4.16)%, and (3.48)%, respectively.
(c) Averages computed on a daily basis.
See Notes to Financial Statements
NOTES TO FINANCIAL STATEMENTS OCTOBER 31, 1996
_________________________________________________________________
Note 1 -- Organization
PATHFINDER FUND (the "Fund") is a series of shares of The
Prudent Speculator Fund (the "Trust") which is registered under
the Investment Company Act of 1940, as amended, as a diversified
open-end management investment company. The Trust was organized
on January 21, 1987, as a Massachusetts business trust and may
issue an unlimited number of shares of beneficial interest
without par value in separate classes or "funds." Currently, the
Trust offers shares in one fund, PATHFINDER FUND.
Note 2 -- Significant Accounting Policies
The following is a summary of the significant accounting
policies consistently followed by the Fund in the preparation of
its financial statements. The policies are in conformity with
generally accepted accounting principles.
A. SECURITY VALUATION. Portfolio securities of the Fund,
which are traded both on an exchange and in the
over-the-counter market, are valued according to the
broadest and most representative market. When portfolio
securities are traded, the valuation is the last reported
sale price on the day of valuation. If there is no such
reported sale or the valuation is based on the
over-the-counter market, the securities are valued at the
mean between the bid and asked prices. Securities for which
reliable quotations are not readily available and restricted
securities are valued at their respective fair market values
as determined in good faith by the Board of Trustees of the
Trust. Short-term investments are stated at cost, which,
when combined with accrued interest, approximates market
value.
B. FEDERAL INCOME TAXES. It is the Fund's policy to
comply with the requirements of the Internal Revenue Code
applicable to regulated investment companies and to
distribute all of its taxable income to its shareholders.
Therefore, no federal income tax provision is required for
the Fund.
C. OTHER. As is common in the industry, security
transactions are accounted for on the date the securities
are purchased or sold. Dividend income and distributions to
shareholders are recorded on the ex-dividend date.
D. USE OF ESTIMATES IN FINANCIAL STATEMENTS. 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 income and expenses during the
period. Actual results may differ from these estimates.
Note 3 -- Investments
For the year ended October 31, 1996, the cost of purchases
and the proceeds from the sale of securities, excluding
short-term notes, for the Fund aggregated $4,945,246 and
$3,445,326, respectively.
Note 4 -- Investment Management and Distribution Agreements
The Fund has entered into an Investment Management Agreement
with the Manager under which the Fund pays a fee, computed daily
and payable quarterly, at an annual rate of .875% of the Fund's
average daily net assets. The Manager is responsible for
supervising the performance of all administrative services in
connection with the management of the Fund.
The Manager has agreed that, in any fiscal year, if the
operating expenses of the Fund (including the fees payable to the
Manager but excluding taxes, interest, distribution fees,
brokerage and extraordinary expenses) exceed the expense
limitations applicable to the Fund imposed by state securities
laws or any regulations thereunder, the Manager will reduce its
fees by the extent of such excess (unless the Manager obtains a
waiver of or variance from such limitations by the appropriate
state securities authorities) and, if required pursuant to any
such laws or regulations, will reimburse the Fund in the amount
of such excess. Currently, the Fund believes that the most
restrictive expense limitation to which the Trust is subject is
2.5% of the Fund's first $30 million of average net assets, 2.0%
of the next $70 million of average net assets and 1.5% of the
remaining average net assets. The Fund has received a waiver to
exclude portions of its custodial, recordkeeping, auditing,
transfer agency and insurance costs from this limitation. Any
such reductions or reimbursements may not be repaid to the
Manager in subsequent fiscal years. The Trust has adopted a Plan
pursuant to the rule 12b-1 under the Investment Company Act of
1940 (the "Plan") on behalf of the Fund, whereby it may pay up to
a maximum annual rate of .25% of its average daily net assets to
the Manager for expenses incurred in the distribution of the
Fund's shares. Pursuant to this Plan the Manager is entitled to
reimbursement at the end of each month for its actual expenses
incurred in the distribution and promotion of the Fund's shares,
including the printing of prospectuses and reports used for sales
purposes, expenses of preparation and printing of sales
literature and other such distribution-related expenses, a
prorated portion of the Manager's overhead expenses attributable
to the distribution of the Fund's shares (including leases,
communications, salaries, training, supplies, photocopying,
interest on overhead, and any other category of the Manager's
expenses attributable to the distribution of the Fund's shares)
and fees paid to dealers, banks or others as a distribution
service fee for servicing shareholders of the Fund. The Plan
permits the Manager to carry forward for a maximum of three years
distribution expenses covered by the Plan for which the Manager
has not yet received reimbursement. The Manager has waived
reimbursement for all distribution expenses under the Plan,
including any accrued carry forward's, for fiscal year 1996 and
has undertaken to do so for fiscal year 1997.
Certain officers and Trustees of the Fund (the "Trust") are
also officers and/or Directors of the Manager.
REPORT OF INDEPENDENT CERTIFIED PUBLIC ACCOUNTANTS
To the Shareholders of PATHFINDER FUND and
the Board of Trustees of The Prudent Speculator Fund
We have audited the accompanying statement of assets and
liabilities of PATHFINDER FUND, a series of shares of beneficial
interest of The Prudent Speculator Fund, including the schedule
of investments, as of October 31, 1996, and the related
statements of operations for the year then ended, the statement
of changes in net assets for the two years then ended, and the
financial highlights for the five years 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 audits.
We conducted our audits in accordance with generally
accepted auditing standards. Those standards require that we
plan and perform the audit to obtain reasonable assurance about
whether the financial standards 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 October 31, 1996, by correspondence with
the custodian and brokers. An audit also includes assessing the
accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement
presentation. We believe that our audits provide a reasonable
basis for our opinion.
In our opinion, the financial statements and financial
highlights referred to above present fairly, in all material
respects, the financial position of PATHFINDER FUND as of October
31, 1996, the results of its operations for the year then ended,
the changes in its net assets for the two years then ended, and
the financial highlights for the periods referred to above, in
conformity with generally accepted accounting principles.
TAIT, WELLER & BAKER
Philadelphia, Pennsylvania
December 6, 1996
PATHFINDER FUND
P.O. Box 75231
Los Angeles, CA 90075-0231
(800) 444-4778
* * * *
OFFICERS AND TRUSTEES
Edwin R. Bernstein, President,
Chief Financial Officer, Trustee
H. Randolph Moore, Jr., Trustee
Patricia C. Nagle, Trustee
Werner Lange, Trustee
Patricia L. Stephan, Vice President,
Secretary, Trustee
* * * *
Manager
The Prudent Speculator Group
Shareholder Servicing Agent
Unified Advisers, Inc.
Custodian
The Fifth Third Bank
Legal Counsel
Baker & Daniels
Independent Auditors
Tait, Weller & Baker
This report is intended for
distribution to shareholders
of the fund. It may also be
given to prospective investors
if preceded or accompanied by
the Fund's current Prospectus
which contains information
regarding fees, charges and
investment objectives and
policies.
