<PAGE> 1
Rule 497(c)
Registration No. 33-17423
PROSPECTUS JANUARY 31, 2000
[CONCORDE FUNDS LOGO]
A MESSAGE FROM THE PRESIDENT OF
CONCORDE INVESTMENT MANAGEMENT
Concorde Investment Management, the investment advisor for Concorde Funds,
Inc., serves as investment advisor and financial counselor to individuals,
trusts, and qualified plans. In managing assets, including the assets of
Concorde Value Fund and Concorde Income Fund, we always look for an appropriate
balance between risk and return.
CONCORDE VALUE FUND. In managing equity investments, we believe the best
investment policy is to buy stocks of companies for less than the per share
price that a knowledgeable investor would pay for the entire company. We are
prepared to hold these stocks for the long-term irrespective of what the popular
opinion is of their value or the value of the overall stock market.
CONCORDE INCOME FUND. In managing a diversified income-oriented portfolio,
we primarily look for current income but will take advantage of opportunities
for capital appreciation and growth of investment income. We do this by
investing in both traditional income-producing securities, such as U.S.
government securities and investment grade debt securities, and in dividend
paying common or preferred stocks.
We at Concorde Investment Management pledge our commitment to the highest
possible standard of professional performance for the benefit of investors in
Concorde Value Fund and Concorde Income Fund.
Sincerely
Gary B. Wood, Ph.D.
President
/s/ GARY B. WOOD
- --------------------------------------------------------------------------------
THE SECURITIES AND EXCHANGE COMMISSION HAS NOT APPROVED OR DISAPPROVED THESE
SECURITIES OR DETERMINED IF THIS PROSPECTUS IS ACCURATE OR COMPLETE. ANY
REPRESENTATION TO THE CONTRARY IS A CRIMINAL OFFENSE.
- --------------------------------------------------------------------------------
CONCORDE FUNDS, INC.
1500 Three Lincoln Centre
5430 LBJ Freeway
Dallas, Texas 75240
(972) 387-8258
<PAGE> 2
TABLE OF CONTENTS
<TABLE>
<CAPTION>
PAGE
----
<S> <C>
CONCORDE VALUE FUND......................................... 3
Main Goal................................................. 3
Principal Investment Strategies........................... 3
Main Investment Risks..................................... 3
Bar Chart and Performance Table........................... 4
Fees and Expenses......................................... 5
Example................................................... 5
CONCORDE INCOME FUND........................................ 6
Main Goal................................................. 6
Principal Investment Strategies........................... 6
Main Investment Risks..................................... 6
Bar Chart and Performance Table........................... 7
Fees and Expenses......................................... 8
Example................................................... 8
OTHER INVESTMENT PRACTICES AND RISKS........................ 9
Investment Objectives..................................... 9
Portfolio Turnover........................................ 9
Temporary Defensive Positions............................. 9
MANAGEMENT.................................................. 9
THE FUNDS' SHARE PRICE...................................... 10
PURCHASING SHARES........................................... 10
How to Purchase Shares from the Funds..................... 10
Purchasing Shares from Broker-dealers, Financial
Institutions and Others................................ 11
Other Information about Purchasing Shares of the FUNDS.... 12
REDEEMING SHARES............................................ 12
How to Redeem (Sell) Shares by Mail....................... 12
How to Redeem (Sell) Shares by Telephone.................. 13
How to Redeem (Sell) Shares through Servicing Agents...... 13
Redemption Price.......................................... 13
Payment of Redemption Proceeds............................ 13
Other Redemption Considerations........................... 14
EXCHANGING SHARES........................................... 15
How to Exchange Shares.................................... 15
DIVIDENDS, DISTRIBUTIONS AND TAXES.......................... 15
FINANCIAL HIGHLIGHTS........................................ 15
</TABLE>
2
<PAGE> 3
CONCORDE VALUE FUND
MAIN GOAL
Concorde Value Fund seeks long-term growth of capital.
PRINCIPAL INVESTMENT STRATEGIES
The VALUE FUND attempts to reduce risk by investing mainly (80% or more) in
undervalued common stocks. The VALUE FUND believes a common stock is undervalued
if the market value of the outstanding common stock is less than the intrinsic
value of the company issuing the common stock. Intrinsic value is the value that
a knowledgeable private investor would place on the entire company. The VALUE
FUND considers many factors in determining whether a common stock is undervalued
including:
-- financial ratios such as price/earnings, price/cash flow, price/sales
and total capitalization/cash flow
-- the company's historic cash flow
-- the company's historic and present market share
-- balance sheet condition
-- management
The VALUE FUND believes a company can be undervalued for any number of
reasons. The most common reasons are that the markets do not understand the
company or that the company's industry is out of favor. In any event, by
investing in undervalued stocks, the VALUE FUND believes it can be in a position
to outperform the market while reducing its risk of under performing the market
(i.e. the stock prices are already low). The VALUE FUND may invest in stocks of
any market capitalization. To hedge against a possible loss in value of
securities it holds the VALUE FUND may write covered call options. (The writer
of a call option receives a premium that may partially or completely offset the
decline in value of the security subject to the call option.) To hedge against a
possible loss in value of its portfolio caused by a general decline in the stock
market the VALUE FUND may purchase stock index put options (stock index put
options increase in value when the index declines).
MAIN INVESTMENT RISKS
The VALUE FUND is subject to the following risks:
-- Market Risk. The VALUE FUND mainly invests in common stocks. The
prices of the stocks in which the VALUE FUND invests may decline for a number of
reasons such as changing economic, political or market conditions. The price
declines may be steep, sudden and/or prolonged. This means you may lose money.
-- Financial Risk. There is a risk that the price of a common stock will
decline because the issuing company experiences financial distress or does not
perform as well as anticipated. Factors affecting a company's performance can
include the strength of its management and the demand for its products or
services.
-- Value Investing. The VALUE FUND mainly invests in undervalued stocks.
There is a risk that it is wrong in its assessment of a company's value or that
the market does not recognize improving fundamentals as quickly as the VALUE
FUND anticipated. In such cases, the stocks may not reach prices which reflect
the intrinsic value of the company. There is also a risk that the VALUE FUND
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may not perform as well as other types of mutual funds when its investing style
is out of favor with other investors.
-- Hedging Risk. By writing a call option, the VALUE FUND may incur the
risk of lost opportunity if the price of the underlying security rises in value.
If the VALUE FUND does not exercise or sell a put option it has purchased prior
to the option's expiration date, it will realize a loss in the amount of the
entire premium paid plus commission cost. It is possible there may be times when
a market for the VALUE FUND's outstanding options does not exist.
As a result of these and other risks, the VALUE FUND is a suitable
investment only for those investors who have long-term investment goals.
Prospective investors who are uncomfortable with an investment that will
fluctuate in value should not invest in the VALUE FUND.
BAR CHART AND PERFORMANCE TABLE
The bar chart and table below give some indication of the risks of
investing in the VALUE FUND by showing how the VALUE FUND's performance changes
from year to year and how its average annual returns over various periods
compare to those of a broad measure of market performance. Please keep in mind
that the VALUE FUND's past performance does not necessarily indicate how it will
perform in the future. The VALUE FUND may perform better or worse in the future.
TOTAL RETURN
(PER CALENDAR YEAR)
[BAR CHART]
<TABLE>
<CAPTION>
A
-
<S> <C>
1990 -16.71
1991 27.52
1992 14.65
1993 10.47
1994 -3.97
1995 24.08
1996 18.03
1997 29.09
1998 2.27
1999 6.73
</TABLE>
- ------------------------
Note: During the 10-year period shown on the bar chart, the VALUE FUND's highest
total return for a quarter was 19.37% (quarter ended March 31, 1991) and
the lowest total return for a quarter was (20.78)% (quarter ended
September 30, 1998).
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<TABLE>
<CAPTION>
AVERAGE ANNUAL TOTAL RETURNS
(FOR THE PERIODS ENDING DECEMBER 31, 1999) PAST 1 YEAR PAST 5 YEARS PAST 10 YEARS
- ------------------------------------------ ----------- ------------ -------------
<S> <C> <C> <C>
Concorde Value Fund 6.73% 15.19% 10.11%
Russell 2000 Index* 21.26% 16.70% 13.40%
Morningstar Mid-Cap Value Funds
Universe** 6.64% 12.98% 13.06%
</TABLE>
--------------------
* The Russell 2000 Index is an index comprised of 2000 publicly
traded small capitalization common stocks that are ranked in
terms of capitalization below the large and mid-range
capitalization sectors of the United States equity market. This
index attempts to accurately capture the performance of the
universe of small capitalization common stocks.
** The Morningstar Mid-Cap Value Funds Universe represents all
mutual funds in the Morningstar database that generally focus on
companies which have market values from $1 billion to $5 billion.
These funds frequently look for stocks that are relatively less
expensive.
FEES AND EXPENSES
The table below describes the fees and expenses you may pay if you buy and
hold shares of the VALUE FUND.
SHAREHOLDER FEES (FEES PAID DIRECTLY FROM YOUR INVESTMENT)
There are no shareholder fees for the purchase, redemption or exchange of
shares, except that our transfer agent charges a fee of $12 for each wire
redemption.
ANNUAL FUND OPERATING EXPENSES (EXPENSES DEDUCTED FROM VALUE FUND ASSETS)
<TABLE>
<S> <C>
Management Fees............................................. 0.90%
Distribution and/or Service (12b-1) Fees.................... None
Other Expenses.............................................. 0.57%
Total Annual Fund Operating Expenses........................ 1.47%
</TABLE>
EXAMPLE
This example is intended to help you compare the cost of investing in the
VALUE FUND with the cost of investing in other mutual funds.
The example assumes that you invest $10,000 in the VALUE FUND for the time
periods indicated and then redeem all of your shares at the end of these
periods. The example also assumes that your investment has a 5% return each year
and that the VALUE FUND's operating expenses remain the same. Although your
actual costs may be higher or lower, based on these assumptions, your costs
would be:
<TABLE>
<CAPTION>
1 YEAR 3 YEARS 5 YEARS 10 YEARS
------ ------- ------- --------
<S> <C> <C> <C>
$149 $464 $803 $1,760
</TABLE>
5
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CONCORDE INCOME FUND
MAIN GOAL
Concorde Income Fund seeks current income. To a lesser extent the INCOME
FUND also seeks growth of capital when compatible with its goal of seeking
current income.
PRINCIPAL INVESTMENT STRATEGIES
The INCOME FUND invests primarily in U.S. dollar denominated investment
grade debt securities. The INCOME FUND intends to invest in debt securities that
have an average maturity between 5 and 10 years, although the average may be
greater or lesser depending on market conditions. The INCOME FUND generally
invests between 20% and 65% of its assets in U.S. Government and agency
securities with maturities ranging from two to ten years. The INCOME FUND
invests the balance of its portfolio primarily in the following types of
securities depending on market conditions:
-- dividend paying common stocks (including common stocks of real estate
investment trusts and royalty trusts)
-- preferred stocks
-- convertible securities
-- corporate debt securities
The INCOME FUND will at all times have at least 65% of its assets invested
in income producing securities. When the INCOME FUND believes interest rates
will rise, the INCOME FUND will invest a greater percentage of its assets in
securities that are less sensitive to interest rate changes.
Unlike funds investing solely for income, the INCOME FUND also invests in
securities that offer opportunities for modest capital appreciation and growth
of investment income. For example, the INCOME FUND may purchase securities which
are convertible into, or exchangeable for, common stock when it believes they
offer the potential for higher total return than nonconvertible securities.
The INCOME FUND generally intends to invest in debt securities of which at
least 80% are investment grade. It may, however, invest up to 20% of its assets
in debt securities rated less than investment grade. These securities are
commonly known as "junk bonds". These securities may not be rated lower than B
at the time of purchase.
MAIN INVESTMENT RISKS
The INCOME FUND is subject to the following risks:
-- Market Risk. The prices of the securities in which the INCOME FUND
invests may decline for a number of reasons such as changing economic or
political conditions and interest rate levels. There is a risk the INCOME FUND
will not accurately predict the impact of these and other factors, in which case
the securities of INCOME FUND purchases might decline in value. This means you
could lose money investing in the INCOME FUND.
-- Interest Rate Risk. In general, the value of debt securities rises
when interest rates fall and falls when interest rates rise. Longer-term
obligations are usually more sensitive to interest rate changes
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<PAGE> 7
than shorter-term obligations. While debt securities normally fluctuate less in
price than common stocks, there have been extended periods of increases in
interest rates that have caused significant declines in some types of debt
securities. A change in interest rates will also change the amount of income the
INCOME FUND generates.
-- Credit Risk. The issuers of the debt securities held by the INCOME
FUND may not be able to make scheduled interest or principal payments. Even if
these issuers are able to make interest or principal payments, they may suffer
adverse changes in financial condition that would lower the credit quality of
the security, leading to greater volatility in the price of the security.
-- Prepayment Risk. The issuers of bonds and other debt securities held
by the INCOME FUND may prepay principal due on securities, particularly during
periods of declining interest rates. Securities subject to prepayment risk
generally offer less potential for gain when interest rates decline, and may
offer a greater potential for loss when interest rates rise. Rising interest
rates may cause prepayments to occur at a slower than expected rate thereby
increasing the average life of the security and making the security more
sensitive to interest rate changes. Prepayment risk is a major risk of
mortgage-backed securities.
-- Junk Bond Risk. The INCOME FUND may invest in debt securities rated
less than investment grade. These securities are commonly referred to as "high
yield" securities or "junk bonds." High yield securities provide greater income
and opportunity for gains than higher-rated securities but entail greater risk
of loss of principal. High yield securities are predominantly speculative with
respect to the issuer's capacity to pay interest and repay principal in
accordance with the terms of the obligation. The market for high yield
securities is generally less active than the market for higher quality
securities. This may limit the ability of the INCOME FUND to sell high yield
securities at the price at which they are being valued for purposes of
calculating net asset value.
BAR CHART AND PERFORMANCE TABLE
The bar chart and table below give some indication of the risks of
investing in the INCOME FUND by showing how the INCOME FUND's performance
changes from year to year and how its average annual returns over various
periods compare to those of a broad measure of market performance. Please keep
in mind that the INCOME FUND's past performance does not necessarily indicate
how it will perform in the future. The INCOME FUND may perform better or worse
in the future.
- ------------------------
Note: During the 3-year period shown on the bar chart, the INCOME FUND's highest
total return for a quarter was 6.51% (quarter ended 12-31-96) and the
lowest total return for a quarter was (1.94%) (quarter ended 12-31-99).
TOTAL RETURN
(PER CALENDAR YEAR)
[BAR CHART]
<TABLE>
<CAPTION>
A
-
<S> <C>
1997 6.84
1998 0.06
1999 -3.82
</TABLE>
7
<PAGE> 8
<TABLE>
<CAPTION>
AVERAGE ANNUAL TOTAL RETURNS SINCE THE INCEPTION OF THE INCOME
(FOR THE PERIODS ENDING DECEMBER 31, 1999) PAST YEAR FUND (JANUARY 22, 1996)
- ------------------------------------------ --------- ---------------------------------
<S> <C> <C>
Concorde Income Fund -3.82% 1.72%
Lehman Intermediate Government/Corporate
Index* .39% 4.82%(since 2/1/96)
</TABLE>
------------------
* The Lehman Intermediate Government/Corporate Index includes
substantially all intermediate public obligations of the U.S.
Treasury, publicly issued debt of U.S. government agencies and
quasi-federal corporations, and corporate debt guaranteed by the
U.S. government; and all publicly issued, fixed rate,
nonconvertible, investment grade, dollar-denominated,
SEC-registered corporate debt. The Index includes bonds with
maturities of one to ten years.
FEES AND EXPENSES
The table below describes the fees and expenses you may pay if you buy and
hold shares of the INCOME FUND.
SHAREHOLDER FEES (FEES PAID DIRECTLY FROM YOUR INVESTMENT)
There are no shareholder fees for the purchase, redemption or exchange of
shares, except that our transfer agent charges a fee of $12 for each wire
redemption.
ANNUAL FUND OPERATING EXPENSES (EXPENSES DEDUCTED FROM INCOME FUND ASSETS)
<TABLE>
<S> <C>
Management Fees............................................. 0.70%
Distribution and/or Service (12b-1) Fees.................... None
Other Expenses.............................................. 1.68%
Total Annual Fund Operating Expenses*....................... 2.38%
</TABLE>
- -------------
* The expenses listed above do not reflect that the INCOME FUND's advisor has
agreed to reimburse the INCOME FUND to the extent necessary to ensure that
total fund operating expenses do not exceed 1.75% of its average daily net
assets. (For the fiscal year ended September 30, 1999, the INCOME FUND's
advisor reimbursed the INCOME FUND for expenses in excess of 1.88% of average
daily net assets.) This reimbursement is voluntary and may be terminated at
any time.
EXAMPLE
This example is intended to help you compare the cost of investing in the
INCOME FUND with the cost of investing in other mutual funds.
The example assumes that you invest $10,000 in the INCOME FUND for the time
periods indicated and then redeem all of your shares at the end of these
periods. The example also assumes that your investment has a 5% return each year
and that the INCOME FUND's operating expenses remain the same. Although your
actual costs may be higher or lower, based on these assumptions, your costs
would be:
<TABLE>
<CAPTION>
1 YEAR 3 YEARS 5 YEARS 10 YEARS
------ ------- ------- --------
<S> <C> <C> <C>
$241 $742 $1,270 $2,718
</TABLE>
8
<PAGE> 9
OTHER INVESTMENT PRACTICES
AND RISKS
In seeking to achieve their investment objectives, the FUNDS may follow
investment practices and assume risks in addition to those discussed previously.
INVESTMENT OBJECTIVES
Each FUND may change its investment objective without obtaining shareholder
approval.
PORTFOLIO TURNOVER
The FUNDS do not engage in trading for short-term profits, but when the
circumstances warrant, the FUNDS may sell securities without regard to the
length of time held. The FUNDS will typically hold an equity security until
either the security price reaches at least the Advisor's target valuation level
or a FUND determines that the security's price is unlikely to reach that level.
The FUNDS may hold stocks for several years or longer, if necessary. The INCOME
FUND will generally hold debt securities until it is necessary to change the
average portfolio maturity.
TEMPORARY DEFENSIVE POSITIONS
The FUNDS may, in response to adverse market, economic or other conditions,
take temporary defensive positions. This means the FUNDS will invest some or all
of their assets in money market instruments (like U.S. Treasury Bills,
commercial paper or repurchase agreements). The VALUE FUND will not be able to
achieve its investment objective of long-term growth of capital to the extent it
invests in money market instruments since those securities earn interest but do
not appreciate in value. Since these investments typically result in a lower
yield than would be available from investments with a lower quality or longer
term, they also may prevent the INCOME FUND from achieving its investment
objective. When a FUND is not taking a temporary defensive position, it will
still hold some cash and money market instruments so that it can pay its
expenses, satisfy redemption requests or take advantage of investment
opportunities.
MANAGEMENT
Concorde Financial Corporation, which does business under the name Concorde
Investment Management, is the investment advisor to each of the FUNDS. The
Advisor's address is
1500 THREE LINCOLN CENTRE
5430 LBJ FREEWAY
DALLAS, TEXAS 75240
As the investment advisor to the FUNDS, the Advisor manages the investment
portfolio of each FUND. The Advisor makes the decisions as to which securities
to buy and which securities to sell. During the last fiscal year, the VALUE FUND
paid the Advisor an annual investment advisory fee equal to 0.9% of the daily
net assets of the VALUE FUND and the INCOME FUND paid the advisor an annual
investment advisory fee equal to 0.7% of the daily net assets of the INCOME
FUND.
The management team for the VALUE FUND currently is comprised of Gary B.
Wood, Ph.D. and John A. Stetter, co-managers. Dr. Wood has been President of the
Advisor since its inception in 1981 and the FUNDS' President and Senior Manager
of its management team since inception. Dr. Wood also controls the Advisor. John
A. Stetter has been the FUNDS' secretary since January 1998 and a portfolio
manager with the Advisor since 1994. From 1988 until 1994, he was the President
of his own investment advisory firm. The management team for the INCOME
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FUND currently is comprised of Dr. Wood and John A. Stetter.
THE FUNDS' SHARE PRICE
The price at which investors purchase shares of each FUND and at which
shareholders redeem shares of each FUND is called its net asset value. Each FUND
calculates its net asset value as of the close of regular trading on the New
York Stock Exchange (normally 4:00 p.m. Eastern Time) on each day the New York
Stock Exchange is open for trading. The New York Stock Exchange is closed on
holidays and weekends. Each FUND calculates its net asset value based on the
market prices of the securities (other than money market instruments) it holds.
Each FUND values most money market instruments it holds at their amortized cost.
Each FUND will process purchase and redemption orders that it receives prior to
the close of regular trading on a day that the New York Stock Exchange is open
at the net asset value determined LATER THAT DAY. It will process purchase and
redemption orders that it receives AFTER the close of regular trading at the net
asset value determined at the close of regular trading on the NEXT DAY the New
York Stock Exchange is open.
PURCHASING SHARES
HOW TO PURCHASE SHARES FROM THE FUNDS
1.Read this Prospectus carefully.
2.Determine how much you want to invest keeping in mind the following
minimums:
A. NEW ACCOUNTS
-- All accounts $500
B. EXISTING ACCOUNTS
-- Purchases by mail $100
-- Purchases by wire $500
3.Complete the New Account Application accompanying this Prospectus,
carefully following the instructions. For additional investments,
complete the remittance form attached to your individual account
statements. (The FUNDS have additional New Account Applications and
remittance forms if you need them.) If you have any questions, please
call 1-972-387-8258 or 1-414-765-4124.
4.Make your check payable to Concorde Funds, Inc. All checks must be drawn
on U.S. banks. The FUNDS will not accept cash or third party checks.
FIRSTAR MUTUAL FUND SERVICES, LLC, THE FUNDS' TRANSFER AGENT, WILL CHARGE
A $20 FEE AGAINST A SHAREHOLDER'S ACCOUNT FOR ANY PAYMENT CHECK RETURNED
FOR INSUFFICIENT FUNDS. THE SHAREHOLDER WILL ALSO BE RESPONSIBLE FOR ANY
LOSSES SUFFERED BY A FUND AS A RESULT.
5.Send the application and check to:
BY FIRST CLASS MAIL
Concorde Funds, Inc.
c/o Firstar Mutual
Fund Services, LLC
P.O. Box 701
Milwaukee, WI 53201-0701
BY OVERNIGHT DELIVERY SERVICE
OR EXPRESS MAIL
Concorde Funds, Inc.
c/o Firstar Mutual
Fund Services, LLC
3rd Floor
615 East Michigan Street
Milwaukee, WI 53202-5207
PLEASE DO NOT SEND LETTERS BY OVERNIGHT DELIVERY SERVICE OR EXPRESS MAIL
TO THE POST OFFICE BOX ADDRESS.
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<PAGE> 11
If you wish to open an account by wire, please call 1-800-294-1699 or
1-414-765-4124 prior to wiring funds in order to obtain a confirmation number
and to ensure prompt and accurate handling of funds. YOU SHOULD WIRE FUNDS TO:
Firstar Bank, N.A.
777 East Wisconsin Avenue
Milwaukee, WI 53202
ABA #075000022
CREDIT:
Firstar Mutual Fund Services, LLC
Account #112-952-137
FURTHER CREDIT:
(name of Fund to be purchased)
(shareholder registration)
(shareholder account number, if known)
You should then send a properly signed New Account Application marked
"FOLLOW-UP" to either of the addresses listed above. PLEASE REMEMBER THAT
FIRSTAR BANK, N.A. MUST RECEIVE YOUR WIRED FUNDS PRIOR TO THE CLOSE OF REGULAR
TRADING ON THE NEW YORK STOCK EXCHANGE FOR YOU TO RECEIVE SAME DAY PRICING. THE
FUNDS AND FIRSTAR BANK, N.A. ARE NOT RESPONSIBLE FOR THE CONSEQUENCES OF DELAYS
RESULTING FROM THE BANKING OR FEDERAL RESERVE WIRE SYSTEM, OR FROM INCOMPLETE
WIRING INSTRUCTIONS.
PURCHASING SHARES FROM BROKER-DEALERS,
FINANCIAL INSTITUTIONS AND OTHERS
Some broker-dealers may sell shares of the FUNDS. These broker-dealers may
charge investors a fee either at the time of purchase or redemption. The fee, if
charged, is retained by the broker-dealer and not remitted to the FUNDS or the
Advisor. Some broker-dealers may purchase and redeem shares on a 3 day
settlement basis (i.e., payment occurs three business days after the purchase or
redemption).
The FUNDS may enter into agreements with broker-dealers, financial
institutions or other service providers ("Servicing Agents") that may include
the FUNDS as investment alternatives in the programs they offer or administer.
Servicing agents may:
-- Become shareholders of record of the FUNDS. This means all requests to
purchase additional shares and all redemption requests must be sent
through the Servicing Agent. This also means that purchases made
through Servicing Agents are not subject to the FUNDS' minimum
purchase requirements.
-- Use procedures and impose restrictions that may be in addition to, or
different from, those applicable to investors purchasing shares
directly from the FUNDS. These procedures, restrictions and any
charges imposed by the Servicing Agents will not apply when investors
purchase shares directly from the FUNDS.
-- Charge fees to their customers for the services they provide them.
Also, the FUNDS and/or the Advisor may pay fees to Servicing Agents to
compensate them for the services they provide their customers.
-- Be allowed to purchase shares by telephone with payment to follow the
next day. If the telephone purchase is made prior to the close of
regular trading on the New York Stock Exchange, it will receive same
day pricing.
-- Be authorized to accept purchase orders on behalf of the FUNDS. This
means that a FUND will process the purchase order at the net asset
value which is determined following the Servicing Agent's acceptance
of the customer's order.
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<PAGE> 12
If you decide to purchase shares through Servicing Agents, please carefully
review the program materials provided to you by the Servicing Agent. When you
purchase shares of the FUNDS through a Servicing Agent, it is the responsibility
of the Servicing Agent to place your order with the FUND on a timely basis. If
the Servicing Agent does not, or if it does not pay the purchase price to the
FUNDS within the period specified in its agreement with the FUNDS, it may be
held liable for any resulting fees or losses.
OTHER INFORMATION ABOUT PURCHASING SHARES
OF THE FUNDS
The FUNDS may reject any Purchase Application for any reason. The FUNDS
will not accept purchase orders made by telephone unless they are from a
Servicing Agent which has an agreement with the FUNDS.
The FUNDS will not issue certificates evidencing shares purchased. Instead,
the FUNDS will send investors a written confirmation for all purchases of
shares.
The FUNDS offer the following retirement plans:
-- Traditional IRA
-- Roth IRA
-- SEP-IRA
-- 401(k) Plan
-- 403(b)(7) Custodial Accounts
-- Profit-sharing and Pension Plans
Investors can obtain further information about the retirement plans by
calling the FUNDS at 1-972-387-8258. The FUNDS recommend that investors consult
with a competent financial and tax advisor regarding the retirement plans before
investing through them.
REDEEMING SHARES
HOW TO REDEEM (SELL) SHARES BY MAIL
1.Prepare a letter of instruction containing:
-- the name of the FUND(s)
-- account number(s)
-- the amount of money or number of shares being redeemed
-- the name(s) on the account
-- daytime phone number
-- additional information that the FUNDS may require for redemptions by
corporations, executors, administrators, trustees, guardians, or
others who hold shares in a fiduciary or representative capacity.
Please contact the FUNDS' transfer agent, Firstar Mutual Fund
Services, LLC, in advance, at 1-800-294-1699 or 1-414-765-4124 if
you have any questions.
2.Sign the letter of instruction exactly as the shares are registered.
Joint ownership accounts must be signed by all owners.
3.Have the signatures guaranteed by a commercial bank or trust company in
the United States, a member firm of the New York Stock Exchange or other
eligible guarantor institution in the following situations:
-- The redemption proceeds are to be sent to a person other than the
person in whose name the shares are registered
-- The redemption proceeds are to be sent to an address other than the
address of record
-- The redemption request is within 15 days of a change of address
request.
12
<PAGE> 13
A NOTARIZED SIGNATURE IS NOT AN ACCEPTABLE SUBSTITUTE FOR A SIGNATURE
GUARANTEE.
4.Send the letter of instruction to:
BY FIRST CLASS MAIL
Concorde Funds, Inc.
c/o Firstar Mutual
Fund Services, LLC
Shareholder Services Center
P. O. Box 701
Milwaukee, WI 53201-0701
BY OVERNIGHT DELIVERY SERVICE
OR EXPRESS MAIL
Concorde Funds, Inc.
c/o Firstar Mutual
Fund Services, LLC
3rd Floor
615 East Michigan Street
Milwaukee, WI 53202-5207
PLEASE DO NOT SEND LETTERS OF INSTRUCTION BY OVERNIGHT DELIVERY SERVICE
OR EXPRESS MAIL TO THE POST OFFICE BOX ADDRESS.
HOW TO REDEEM (SELL) SHARES BY TELEPHONE
1.Instruct Firstar Mutual Fund Services, LLC that you want the option of
redeeming shares by telephone. This can be done by completing the
appropriate section on the New Account Application. If you have already
opened an account, you may write to Firstar Mutual Fund Services, LLC
requesting this option. When you do so, please sign the request exactly
as your account is registered and have the signatures guaranteed. Shares
held in retirement plans cannot be redeemed by telephone.
2.Assemble the same information that you would include in the letter of
instruction for a written redemption request.
3.Call Firstar Mutual Fund Services, LLC at 1-800-294-1699 or
1-414-765-4124. PLEASE DO NOT CALL THE FUND OR THE ADVISOR.
4.Telephone redemptions must be in amounts of $1,000 or more.
HOW TO REDEEM (SELL) SHARES THROUGH
SERVICING AGENTS
If your shares are held by a Servicing Agent, you must redeem your shares
through the Servicing Agent. Contact the Servicing Agent for instructions on how
to do so.
REDEMPTION PRICE
The redemption price per share you receive for redemption requests is the
next determined net asset value after:
-- Firstar Mutual Fund Services, LLC receives your written request with
all required information.
-- Firstar Mutual Fund Services, LLC receives your authorized telephone
request with all required information.
-- A Servicing Agent that has been authorized to accept redemption
requests on behalf of the FUNDS receives your request in accordance
with its procedures.
PAYMENT OF REDEMPTION PROCEEDS
-- For those shareholders who redeem shares by mail, Firstar Mutual Fund
Services, LLC will mail a check in the amount of the redemption
proceeds no later than the seventh day after it receives the
redemption request in proper form with all required information.
-- For those shareholders who redeem by telephone, Firstar Mutual Fund
Services, LLC will mail a check in the amount of the redemption
proceeds no later than the seventh day after it receives the
redemption requests, or transfer the redemption proceeds to
13
<PAGE> 14
your designated bank account if you have elected to receive redemption
proceeds by either Electronic Funds Transfer or wire. An Electronic
Funds Transfer generally takes up to 3 business days to reach the
shareholder's account whereas Firstar Mutual Fund Services, LLC
generally wires redemption proceeds on the business day following the
calculation of the redemption price. However, the FUNDS may direct
Firstar Mutual Fund Services, LLC to pay the proceeds of a telephone
redemption on a date no later than the seventh day after the
redemption request.
-- For those shareholders who redeem shares through Servicing Agents, the
Servicing Agent will transmit the redemption proceeds in accordance
with its redemption procedures.
OTHER REDEMPTION CONSIDERATIONS
When redeeming shares of the FUNDS, shareholders should consider the
following:
-- The redemption may result in a taxable gain.
-- Shareholders who redeem shares held in an IRA must indicate on their
redemption request whether or not to withhold federal income taxes. If
not, these redemptions, as well as redemptions of other retirement
plans not involving a direct rollover to an eligible plan, will be
subject to federal income tax withholding.
-- The FUNDS may delay the payment of redemption proceeds for up to seven
days for any redemption.
-- If you purchased shares by check, the FUNDS may delay the payment of
redemption proceeds until they are reasonably satisfied the check has
cleared (which may take up to 15 days from the date of purchase).
-- Firstar Mutual Fund Services, LLC will send the proceeds of telephone
redemptions to an address or account other than that shown on its
records only if the shareholder has sent in a written request with
signatures guaranteed.
-- The FUNDS reserve the right to refuse a telephone redemption request
if they believe it is advisable to do so. For example, this could
occur if the caller were unable to identify himself or herself as the
shareholder. The FUNDS and Firstar Mutual Fund Services, LLC may
modify or terminate their procedures for telephone redemptions at any
time. Neither the FUNDS nor Firstar Mutual Fund Services, LLC will be
liable for following instructions for telephone redemption
transactions that they reasonably believe to be genuine, provided they
use reasonable procedures to confirm the genuineness of the telephone
instructions. They may be liable for unauthorized transactions if they
fail to follow such procedures. These procedures include requiring
some form of personal identification prior to acting upon the
telephone instructions and recording all telephone calls. During
periods of substantial economic or market change, you may find
telephone redemptions difficult to implement. If a shareholder cannot
contact Firstar Mutual Fund Services, LLC by telephone, he or she
should make a redemption request in writing in the manner described
earlier.
-- Firstar Mutual Fund Services, LLC currently charges a fee of $12 when
transferring redemption proceeds to your designated bank account by
wire but does not charge a fee when transferring redemption proceeds
by Electronic Funds Transfer.
14
<PAGE> 15
-- If your account balance falls below $250 because you redeem shares,
you will be given 60 days to make additional investments so that your
account balance is $250 or more. If you do not, the FUNDS may close
your account and mail the redemption proceeds to you.
EXCHANGING SHARES
Shares of one Concorde Fund may be exchanged for shares of the other
Concorde Fund at their relative net asset values. You may have a taxable gain or
loss as a result of an exchange because the Internal Revenue Code treats an
exchange as a sale of shares.
HOW TO EXCHANGE SHARES
1.Read this Prospectus carefully.
2.Determine the number of shares you want to exchange keeping in mind that
exchanges are subject to a $500 minimum, except that telephone exchanges
are subject to a $1,000 minimum.
3.Call Firstar Mutual Fund Services, LLC at 1-800-294-1699. You may also
make an exchange by writing to Concorde Funds, Inc., c/o Firstar Mutual
Fund Services, LLC, 3rd Floor, P.O. Box 701, Milwaukee, Wisconsin
53201-0701.
DIVIDENDS, DISTRIBUTIONS AND TAXES
The VALUE FUND distributes substantially all of its net investment income
and substantially all of its capital gains annually. The INCOME FUND distributes
substantially all of its net investment income quarterly and substantially all
of its capital gains annually. You have two distribution options:
-- AUTOMATIC REINVESTMENT OPTION -- Both dividend and capital gains
distributions will be reinvested in additional FUND shares.
-- ALL CASH OPTION -- Both dividend and capital gains distributions will
be paid in cash.
You may make this election on the New Account Application. You may change
your election by writing to Firstar Mutual Fund Services, LLC.
Each FUND'S distributions, whether received in cash or additional shares of
the FUND, may be subject to federal and state income tax. These distributions
may be taxed as ordinary income and capital gains (which may be taxed at
different rates depending on the length of time the FUND holds the assets
generating the capital gains). The VALUE FUND expects that its distributions
will consist of both ordinary income and long-term capital gains. The INCOME
FUND expects that its distributions will consist primarily of ordinary income.
FINANCIAL HIGHLIGHTS
The financial highlights tables are intended to help you understand a
FUND'S financial performance for the past five fiscal years of the VALUE FUND's
operations and for the period of the INCOME FUND's operations. Certain
information reflects financial results for a single FUND share. The total
returns in the tables represent the rate that an investor would have earned on
an investment in a FUND (assuming reinvestment of all dividends and
distributions). This information (other than the information for periods prior
to October 1, 1998) has been audited by Wallace Sanders & Company, whose report,
along with the FUNDS' financial statements, are included in the Annual Report
which is available upon request. The information for periods prior to 1998 was
audited by an accounting firm other than Wallace Sanders & Company.
15
<PAGE> 16
CONCORDE VALUE FUND
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
YEAR ENDED SEPTEMBER 30,
------------------------------------------------
1999 1998 1997 1996 1995
------- -------- ------- ------- -------
<S> <C> <C> <C> <C> <C>
PER SHARE DATA(1):
Net asset value, beginning of year........... $ 15.36 $ 19.66 $ 14.95 $ 13.33 $ 12.28
------- -------- ------- ------- -------
Income from investment operations:
Net investment income...................... 0.02 0.02 0.06 0.07 0.06
Net realized and unrealized gain (loss) on
investments in securities............... 2.64 (2.73) 5.66 1.73 1.47
------- -------- ------- ------- -------
Total income (loss) from investment
operations.............................. 2.66 (2.71) 5.72 1.80 1.53
------- -------- ------- ------- -------
Less distributions:
Distributions from net investment income... -- (0.06) (0.09) (0.06) (0.06)
Distributions from net realized gains...... (2.52) (1.53) (0.92) (0.12) (0.42)
------- -------- ------- ------- -------
Total from distributions................... (2.52) (1.59) (1.01) (0.18) (0.48)
------- -------- ------- ------- -------
Net asset value, end of year................. $ 15.50 $ 15.36 $ 19.66 $ 14.95 $ 13.33
======= ======== ======= ======= =======
TOTAL RETURN................................. 18.38% (14.76%) 40.53% 13.64% 13.32%
======= ======== ======= ======= =======
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of year (in thousands)..... $15,487 $ 14,367 $17,532 $12,580 $12,235
Ratio of expenses to average net assets.... 1.47% 1.39% 1.60% 1.62% 1.74%
Ratio of net investment income to average
net assets.............................. 0.11% 0.12% 0.38% 0.53% 0.52%
Portfolio turnover rate.................... 25.87% 44.62% 30.62% 26.10% 22.42%
</TABLE>
- ---------------------
(1) Per share information has been calculated using the average number of shares
outstanding.
16
<PAGE> 17
CONCORDE INCOME FUND
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
PERIOD ENDED SEPTEMBER 30,
-----------------------------------
1999 1998 1997 1996(2)
------- ------ ------ -------
<S> <C> <C> <C> <C>
PER SHARE DATA(1):
Net asset value, beginning of period..................... $ 10.01 $10.41 $ 9.94 $10.00
------- ------ ------ ------
Income from investment operations:
Net investment income.................................. 0.49 0.49 0.49 0.25
Net realized and unrealized gain (loss) on investments
in securities....................................... (0.76) (0.39) 0.52 (0.18)
------- ------ ------ ------
Total income (loss) from investment operations......... (0.27) 0.10 1.01 0.07
------- ------ ------ ------
Less distributions:
Distributions from net investment income............... (0.48) (0.50) (0.54) (0.13)
------- ------ ------ ------
Net asset value, end of period........................... $ 9.26 $10.01 $10.41 $ 9.94
======= ====== ====== ======
TOTAL RETURN............................................. (2.80%) 0.92% 10.41% 0.71%
======= ====== ====== ======
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands)............... $ 5,038 $4,818 $3,920 $2,217
Ratio of expenses (before reimbursement) to average net
assets.............................................. 2.38% 2.46% 3.27% 3.17%
Ratio of expenses (net of reimbursement) to average net
assets.............................................. 1.88% 1.89% 1.99% 2.01%
Ratio of net investment income to average net assets... 5.01% 4.78% 4.86% 2.51%
Portfolio turnover rate................................ 29.63% 18.84% 20.07% 29.77%
</TABLE>
- ---------------------
(1) Per share information has been calculated using the average number of shares
outstanding.
(2) Period from January 22, 1996 (commencement of operations) through September
30, 1996. Total return and other ratios are not annualized.
17
<PAGE> 18
To learn more about the Concorde Funds, you may want to read Concorde
Funds' Statement of Additional Information (or "SAI") which contains additional
information about the FUNDS. The Concorde Funds have incorporated by reference
the SAI into the Prospectus. This means that you should consider the contents of
the SAI to be part of the Prospectus.
You also may learn about the Concorde Funds' investments by reading the
FUNDS' annual and semi-annual reports to shareholders. The annual report
includes a discussion of the market conditions and investment strategies that
significantly affected performance as well as the auditors' report.
The SAI and the annual and semi-annual reports are available to
shareholders and prospective investors without charge, simply by calling Firstar
Mutual Fund Services, LLC at 1-800-922-0224 or by writing to:
CONCORDE FUNDS
1500 THREE LINCOLN CENTRE
5430 LBJ FREEWAY
DALLAS, TEXAS 75240
Prospective investors and shareholders who have questions about Concorde
Funds may also call the above number or write to the above address.
The general public can review and copy information about the Concorde Funds
(including the SAI) at the Securities and Exchange Commission's Public Reference
Room in Washington, D.C. (Please call 1-202-942-8090 for information on the
operations of the Public Reference Room.) Reports and other information about
the Concorde Funds are also available at the Securities and Exchange
Commission's Internet site at http://www.sec.gov. and copies of this information
may be obtained, upon payment of a duplicating fee by electronic request at the
following e-mail address: [email protected], or by writing to:
PUBLIC REFERENCE SECTION
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549-6009
Please refer to the Concorde Funds' Investment Company Act File No.
811-5339 when seeking information about the Funds from the Securities and
Exchange Commission.
[CONCORDE FUNDS LOGO]
PROSPECTUS
JANUARY 31, 2000
<PAGE> 19
[CONCORDE FUNDS LOGO]
NEW ACCOUNT APPLICATION
<TABLE>
<S> <C> <C> <C>
Mail To: Concorde Funds Overnight Express Mail To: Concorde Funds
c/o Firstar Mutual Fund Services, LLC c/o Firstar Mutual Fund Services, LLC
P.O. Box 701 615 E. Michigan St., 3rd Floor
Milwaukee, WI 53201-0701 Milwaukee, WI 53202-5207
Use this form for individual, custodial, trust, profit sharing or pension plan accounts. Do not use this form for Concorde Funds
sponsored IRA or SEP IRA accounts. For any additional information please call Concorde Funds at 1-800-294-1699 or 1-972-387-8258.
- ------------------------------------------------------------------------------------------------------------------------------------
A. INVESTMENT [ ] By check Payable to Concorde Funds. Amount $_________________ ($500.00 minimum).
[ ] By wire: Call 1-800-294-1699.
[ ] Indicate total amount and date of wire $_________________ Date ______________
Fill in the amount or percentage of the total to be invested in each Fund (Minimum investment is $500.00 per fund.)
Amount Percentage
[ ] Concorde Value Fund $______________ __________%
[ ] Concorde Income Fund $______________ __________%
- ------------------------------------------------------------------------------------------------------------------------------------
B. REGISTRATION
[ ] Individual
----------------- ------- -------------------- ---------------------- ---------------------
FIRST NAME M.I. LAST NAME SOCIAL SECURITY # BIRTHDATE (Mo/Dy/Yr)
[ ] Joint Owner
----------------- ------- -------------------- ---------------------- ---------------------
FIRST NAME M.I. LAST NAME SOCIAL SECURITY # BIRTHDATE (Mo/Dy/Yr)
[ ] Community Property (No Rights of Survivorship) [ ] Joint Tenants with Rights of Survivorship
[ ] Tenants in Common
*Registration will be Joint Tenants without Rights of Survivorship, unless otherwise specified.
[ ] Gift to Minors
------------------------------------------------- --------- -------------------------------------
CUSTODIAN'S FIRST NAME (ONLY ONE PERMITTED) M.I. LAST NAME
------------------------------------------------- --------- -------------------------------------
MINOR'S FIRST NAME (ONLY ONE PERMITTED) M.I. LAST NAME
-------------------------------- ---------------------------- -------------------------------------
MINOR'S SOCIAL SECURITY # MINOR'S BIRTHDATE (Mo/Dy/Yr) STATE OF RESIDENCE
[ ] Corporation**/Trust
---------------------------------------------------------------- -------------------------------------
NAME OF TRUSTEE(S) *(IF TO BE INCLUDED IN REGISTRATION) DATE OF AGREEMENT (Mo/Dy/Yr)
[ ] Partnership*
---------------------------------------------------------------------------------------------------------
NAME OF TRUST/CORPORATION**/PARTNERSHIP
[ ] Other Entity*
---------------------------------------------------------------- -------------------------------------
SOCIAL SECURITY #/TAX ID # DATE OF AGREEMENT (Mo/Dy/Yr)
*Additional documentation and certification may be requested. **Corporate Resolution is required.
- ------------------------------------------------------------------------------------------------------------------------------------
C. DISTRIBUTION OPTIONS: Capital Gains & Capital Gains & Capital Gains in Cash & Capital Gains Reinvested
Dividends Reinvested [ ] Dividends in Cash [ ] Dividends Reinvested [ ] & Dividends in~Cash [ ]
Capital gains & dividends
will be reinvested if no Unless otherwise indicated, all distributions will be reinvested.
option is selected.
- ------------------------------------------------------------------------------------------------------------------------------------
D. MAILING ADDRESS [ ] DUPLICATE CONFIRMATION TO:
- -------------------------------- -------------------- ---------------------------- -------- -------------------------
STREET APT/SUITE FIRST NAME M.I. LAST NAME
- -------------------- ------- -------------------- --------------------------------------- -------------------------
CITY STATE ZIP STREET APT/SUITE
- ------------------------------- -------------------- --------------------------- --------- -------------------------
DAYTIME PHONE # EVENING PHONE # CITY STATE ZIP
- ------------------------------------------------------------------------------------------------------------------------------------
E. TELEPHONE OPTIONS [ ] Telephone Redemption
Your signed Application must [ ] Check to address shown on your account
be received at least 15 [ ] Via federal wire to your bank account below ($12.00 charge for each wire transfer)
business days prior to initial [ ] Via EFT, at no charge, to your bank account below (funds are typically credited within
transaction. two days after redemption)
To ensure proper crediting of -------------------------------------------------------------------------------------------------
your bank account, an unsigned NAME(S) ON BANK ACCOUNT
voided check (for checking
accounts) or a savings account --------------------------------------------- -------------------------------------------------
deposit slip is required with BANK NAME ACCOUNT NUMBER
your Application.
--------------------------------------------- -------------------------------------------------
BANK ADDRESS BANK ROUTING/ABA#
- ------------------------------------------------------------------------------------------------------------------------------------
F. SIGNATURE AND I have received and read the Prospectus for the Concorde Funds (the "Fund"). I understand the
CERTIFICATION Fund's investment objectives and policies and agree to be bound by the terms of the Prospectus. I
REQUIRED BY THE am of legal age in my state of residence and have full authority to purchase shares of the Fund
INTERNAL REVENUE and to establish and use any related privileges.
SERVICE
Neither the Fund nor its transfer agent will be responsible for the authenticity of transaction
instructions received by telephone, provided that reasonable security procedures have been
followed.
By selecting the option in Section E, I hereby authorize the Fund to initiate credits to my
account at the bank indicated and for the bank to credit the same to such account through the
Automated Clearing House ("ACH") system.
Under the penalty of perjury, I certify that (1) the Social Security Number or Taxpayer
Identification Number shown on this form is my correct Taxpayer Identification Number, and (2) I
am not subject to backup withholding either as a result of a failure to report all interest or
dividends, or the IRS has notified me that I am no longer subject to backup withholding. The IRS
does not require your consent to any provision of this document other than the certifications
required to avoid backup withholding.
--------------------------------------------- -------------------------------------------------
DATE (Mo/Dy/Yr) SIGNATURE OF OWNER*
--------------------------------------------- -------------------------------------------------
DATE (Mo/Dy/Yr) SIGNATURE OF OWNER, if any
*If shares are to be registered in (1) joint names, both persons should sign, (2) a custodian for
a minor, the custodian should sign, (3) a trust, the trustee(s) should sign, or (4) a corporation
or other entity, an officer should sign and print name and title on space provided below.
-------------------------------------------------------------------------------------------------
PRINT NAME AND TITLE OF OFFICER SIGNING FOR A CORPORATION OR OTHER ENTITY
</TABLE>
