<PAGE> 1
FREMONT
FUNDS
A MESSAGE FROM DAVID L. REDO - PRESIDENT AND CEO OF FREMONT INVESTMENT
- ----------------------------------------------------------------------
ADVISORS, INC.
- -------------
Dear Fellow Shareholder:
We are pleased to send you this report discussing our eight Fremont
Mutual Funds for the one year period ended October 31, 1995.
The Fremont Funds had an excellent year. Some of the highlights
include:
o The Fremont U.S. Micro-Cap Fund produced a total return of 38.68%
during the period, beating the Russell 2000 Index by 20.36%.
o The Fremont Global Fund, with a 12.78% return for the year,
outperformed the average mutual fund in the Lipper Global Flexible
investment category by 3.5%.
o The Fremont Growth Fund outperformed the S&P 500 by nearly 2%. It
also beat the average growth stock fund by nearly 6% for the year.
o The Fremont Money Market Fund remained in the top five percent of all
taxable Money Market Mutual Funds in the country this year.
Assets under management are steadily growing. On September 13, the
Fremont Funds passed the $1 billion mark. I would like to thank each and every
investor who helped us reach this milestone.
Please review the discussion of each of our funds on the following
pages. If you have any questions about the information presented, please call
us at 1-800-548-4539 (press 1). We look forward to continuing to serve your
investment needs, and wish you and your family a very prosperous 1996.
Sincerely,
/s/ Dave
David L. Redo
President and CEO
FREMONT MUTUAL FUNDS
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2
FREMONT MUTUAL FUNDS
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TABLE OF CONTENTS
QUESTIONS AND ANSWERS
<TABLE>
<S> <C>
Global Fund 5
International Growth Fund 8
International Small Cap Fund 10
U.S. Micro-Cap Fund 12
Growth Fund 14
Bond Fund 15
Money Market Fund 16
California Intermediate Tax-Free Fund 17
REPORT OF INDEPENDENT ACCOUNTANTS 18
STATEMENT OF INVESTMENTS
Global Fund 19
International Growth Fund 24
International Small Cap Fund 26
U.S. Micro-Cap Fund 29
Growth Fund 30
Bond Fund 32
Money Market Fund 34
California Intermediate Tax-Free Fund 35
COMBINED FINANCIAL STATEMENTS
Statements of Assets and Liabilities 38
Statements of Operations 40
Statements of Changes in Net Assets 42
FINANCIAL HIGHLIGHTS 46
NOTES TO FINANCIAL STATEMENTS 51
</TABLE>
FREMONT MUTUAL FUNDS
3
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FREMONT MUTUAL FUNDS
4
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QUESTIONS & ANSWERS
The Fremont Asset Allocation Committee:
Dave Redo, Pete Landini, Bob Haddick, Vince Kuhn
FREMONT GLOBAL FUND
Q: How did the Fremont Global Fund perform for the fiscal year ended October
31, 1995?
A: The Fremont Global Fund produced a total return of 12.78% for fiscal 1995,
on the strength of dramatic U.S. stock and bond performance during the
second half of the fiscal year.
Q: How does this performance compare to other global flexible funds?
A: The Fund's performance was excellent within its peer group. The average
return for the funds making up the Lipper Global Flexible category was
9.27% for the same period -- 3.51% below the Fremont Global Fund. This
difference can be attributed to smart asset allocation decisions and
security selections made by the Fund over the course of the year.
Q: What worked well for the Fund during this period?
A: The Global Fund was fully invested in global stocks and bonds for most of
the fiscal year while cash reserves were at a minimum. This strategy proved
very effective, since U.S. stocks and bonds were particularly strong.
Q: What strategies were less successful?
A: The Fremont Global Fund maintained a slight overweighting in international
stocks during fiscal 1995. Although international stocks as a group
increased in value, they did not perform as well as U.S. stocks. We also
favored Southeast Asian stocks, based on expectations that good earnings
growth in this region, combined with lower U.S. interest rates, would boost
these stock markets. To date, this has not occurred, although we remain
confident that this strategy will pay off in the months ahead.
(continued on page 6)
FREMONT GLOBAL FUND - Growth of $10,000*
* Assumes initial investment of $10,000 on inception date, November 18, 1988.
<TABLE>
<CAPTION>
Salomon Non-U.S.
Lehman Bros. Intermediate Govt. Bond Index
Fremont Global Fund S&P 500 Index Govt./Corp. Bond Index EAFE Index (Currency Hedged)
------------------- ------------------ ------------------------- ------------------ --------------------
Qtrly Qtrly Qtrly Qtrly Qtrly
Return Balance Return Balance Return Balance Return Balance Return Balance
------ ------- ------ ------- ------ ------- ------ ------- ------ -------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
18-Nov-88 $10,000 $10,000 $10,000 $10,000 $10,000
30-Nov-88 0.40% $10,040 2.81% $10,281 -0.34% $9,966 1.61% $10,161 0.11% $10,011
31-Dec-88 0.83% $10,123 1.81% $10,467 0.09% $9,975 0.56% $10,218 0.80% $10,091
31-Jan-89 2.88% $10,415 7.22% $11,223 1.05% $10,080 1.76% $10,398 0.56% $10,148
28-Feb-89 -0.87% $10,325 -2.48% $10,944 -0.42% $10,037 0.51% $10,451 -0.84% $10,062
31-Mar-89 1.75% $10,506 2.34% $11,201 0.43% $10,081 -1.96% $10,246 0.69% $10,132
30-Apr-89 1.63% $10,677 5.15% $11,777 2.00% $10,282 0.93% $10,341 0.97% $10,230
31-May-89 1.41% $10,828 4.05% $12,254 1.98% $10,486 -5.44% $9,779 0.05% $10,235
30-Jun-89 0.46% $10,878 -0.55% $12,187 2.52% $10,750 -1.68% $9,614 0.87% $10,324
31-Jul-89 4.72% $11,391 8.98% $13,281 2.05% $10,970 12.56% $10,822 2.18% $10,549
31-Aug-89 1.06% $11,512 1.93% $13,538 -1.29% $10,829 -4.50% $10,335 0.09% $10,559
30-Sep-89 -0.44% $11,462 -0.39% $13,485 0.47% $10,880 4.56% $10,806 -0.53% $10,503
31-Oct-89 -0.79% $11,371 -2.36% $13,167 2.12% $11,110 -4.02% $10,371 -0.06% $10,497
30-Nov-89 1.30% $11,519 2.07% $13,439 0.95% $11,216 5.03% $10,893 -0.23% $10,472
31-Dec-89 1.88% $11,735 2.37% $13,758 0.28% $11,247 3.69% $11,295 0.33% $10,507
31-Jan-90 -3.09% $11,373 -6.71% $12,835 -0.64% $11,175 -3.73% $10,874 -1.98% $10,299
28-Feb-90 -0.37% $11,331 1.29% $13,000 0.37% $11,217 -6.97% $10,116 -1.49% $10,145
31-Mar-90 0.38% $11,373 2.62% $13,341 0.13% $11,231 -10.42% $9,062 -0.05% $10,140
30-Apr-90 -1.50% $11,203 -2.48% $13,010 -0.35% $11,192 -0.79% $8,990 -0.08% $10,132
31-May-90 5.42% $11,810 9.75% $14,278 2.20% $11,438 11.41% $10,016 2.48% $10,384
30-Jun-90 0.27% $11,842 -0.69% $14,180 1.34% $11,591 -0.88% $9,928 0.52% $10,438
31-Jul-90 0.72% $11,927 -0.32% $14,134 1.39% $11,753 1.41% $10,068 0.39% $10,478
31-Aug-90 -4.91% $11,341 -9.04% $12,857 -0.41% $11,704 -9.71% $9,090 -1.35% $10,337
30-Sep-90 -4.13% $10,873 -4.92% $12,224 0.77% $11,795 -13.94% $7,823 -0.56% $10,279
31-Oct-90 1.82% $11,070 -0.37% $12,179 1.16% $11,931 15.59% $9,042 2.87% $10,574
30-Nov-90 2.52% $11,349 6.43% $12,961 1.52% $12,112 -5.90% $8,509 1.64% $10,747
31-Dec-90 1.57% $11,527 2.75% $13,318 1.37% $12,278 1.62% $8,647 1.00% $10,855
31-Jan-91 2.34% $11,797 4.42% $13,907 1.02% $12,403 3.23% $8,926 1.90% $11,061
28-Feb-91 4.00% $12,270 7.16% $14,902 0.80% $12,501 10.72% $9,883 1.47% $11,224
31-Mar-91 0.37% $12,315 2.37% $15,255 0.68% $12,586 -6.00% $9,290 0.05% $11,229
30-Apr-91 0.46% $12,371 0.28% $15,297 1.09% $12,724 0.98% $9,381 0.49% $11,284
31-May-91 1.91% $12,607 4.30% $15,955 0.61% $12,802 1.04% $9,479 0.59% $11,351
30-Jun-91 -2.77% $12,258 -4.56% $15,228 0.07% $12,811 -7.35% $8,782 -0.54% $11,290
31-Jul-91 2.75% $12,596 4.68% $15,940 1.12% $12,954 4.91% $9,213 0.91% $11,392
31-Aug-91 1.70% $12,810 2.35% $16,315 1.91% $13,202 -2.03% $9,026 1.29% $11,539
30-Sep-91 0.79% $12,911 -1.65% $16,046 1.72% $13,429 5.64% $9,535 1.63% $11,727
31-Oct-91 1.50% $13,105 1.33% $16,259 1.14% $13,582 1.42% $9,671 0.71% $11,811
30-Nov-91 -1.78% $12,872 -4.03% $15,604 1.15% $13,738 -4.67% $9,219 0.32% $11,848
31-Dec-91 6.24% $13,676 11.42% $17,386 2.44% $14,073 5.16% $9,695 1.78% $12,059
31-Jan-92 -0.59% $13,595 -1.85% $17,064 -0.91% $13,946 -2.14% $9,488 0.84% $12,161
29-Feb-92 1.12% $13,747 1.28% $17,282 0.39% $14,001 -3.58% $9,148 0.33% $12,201
31-Mar-92 -2.04% $13,466 -1.95% $16,945 -0.39% $13,946 -6.60% $8,544 -0.57% $12,131
30-Apr-92 0.26% $13,501 2.92% $17,440 0.88% $14,068 0.48% $8,585 0.31% $12,169
31-May-92 2.01% $13,773 0.53% $17,533 1.55% $14,286 6.69% $9,160 1.08% $12,300
30-Jun-92 -0.86% $13,655 -1.46% $17,277 1.48% $14,498 -4.74% $8,726 0.41% $12,351
31-Jul-92 1.13% $13,808 4.04% $17,975 1.99% $14,786 -2.56% $8,502 0.70% $12,437
31-Aug-92 0.26% $13,844 -2.02% $17,612 1.00% $14,934 6.27% $9,035 0.32% $12,477
30-Sep-92 0.86% $13,964 1.15% $17,815 1.36% $15,138 -1.98% $8,856 1.64% $12,682
31-Oct-92 0.51% $14,035 0.36% $17,879 -1.30% $14,941 -5.25% $8,392 1.71% $12,898
30-Nov-92 1.30% $14,218 3.37% $18,482 -0.38% $14,884 0.94% $8,471 0.04% $12,904
31-Dec-92 1.20% $14,389 1.30% $18,722 1.34% $15,083 0.52% $8,515 0.95% $13,026
31-Jan-93 0.43% $14,450 0.73% $18,858 1.94% $15,375 -0.01% $8,514 1.05% $13,163
28-Feb-93 1.10% $14,609 1.36% $19,115 1.58% $15,618 3.02% $8,771 1.83% $13,405
31-Mar-93 2.10% $14,916 2.15% $19,527 0.40% $15,681 8.72% $9,536 -0.28% $13,367
30-Apr-93 0.16% $14,940 -2.45% $19,049 0.80% $15,806 9.49% $10,441 -0.05% $13,360
31-May-93 0.99% $15,089 2.67% $19,558 -0.22% $15,771 2.11% $10,662 0.48% $13,425
30-Jun-93 0.82% $15,212 0.33% $19,623 1.57% $16,019 -1.56% $10,495 1.86% $13,675
31-Jul-93 1.38% $15,423 -0.49% $19,526 0.24% $16,058 3.50% $10,863 1.12% $13,829
31-Aug-93 3.07% $15,896 3.78% $20,263 1.59% $16,313 5.40% $11,449 1.97% $14,101
30-Sep-93 1.25% $16,095 -0.74% $20,114 0.41% $16,381 -2.25% $11,192 0.67% $14,195
31-Oct-93 2.47% $16,493 2.05% $20,527 0.27% $16,425 3.08% $11,536 1.30% $14,380
30-Nov-93 -0.99% $16,330 -0.90% $20,342 -0.56% $16,333 -8.74% $10,528 0.84% $14,500
31-Dec-93 5.38% $17,209 1.23% $20,592 0.46% $16,408 7.22% $11,288 1.88% $14,774
31-Jan-94 1.32% $17,436 3.36% $21,284 1.11% $16,590 8.45% $12,242 -0.77% $14,660
28-Feb-94 -2.83% $16,944 -2.71% $20,707 -1.48% $16,344 -0.28% $12,208 -1.96% $14,372
31-Mar-94 -4.10% $16,249 -4.34% $19,808 -1.65% $16,075 -4.31% $11,683 -0.62% $14,283
30-Apr-94 0.39% $16,312 1.29% $20,064 -0.68% $15,965 4.24% $12,178 -0.55% $14,204
31-May-94 0.39% $16,375 1.63% $20,392 0.07% $15,976 -0.57% $12,108 -0.77% $14,094
30-Jun-94 -1.08% $16,198 -2.47% $19,887 0.01% $15,978 1.41% $12,279 -1.09% $13,940
31-Jul-94 1.95% $16,514 3.31% $20,545 1.44% $16,208 0.96% $12,397 0.69% $14,036
31-Aug-94 2.83% $16,982 4.07% $21,381 0.31% $16,259 2.37% $12,691 -0.95% $13,902
30-Sep-94 -2.16% $16,615 -2.42% $20,864 -0.92% $16,109 -3.15% $12,291 0.30% $13,944
31-Oct-94 0.99% $16,780 2.30% $21,344 -0.01% $16,108 3.33% $12,700 0.34% $13,991
30-Nov-94 -1.98% $16,447 -3.67% $20,560 -0.45% $16,035 -4.81% $12,089 1.30% $14,173
31-Dec-94 0.26% $16,491 1.47% $20,862 0.35% $16,091 0.63% $12,166 0.04% $14,179
31-Jan-95 -1.09% $16,310 2.59% $21,403 1.68% $16,362 -3.84% $11,699 1.06% $14,329
28-Feb-95 1.26% $16,516 3.87% $22,231 2.07% $16,700 -0.29% $11,665 1.27% $14,511
31-Mar-95 2.19% $16,877 2.96% $22,889 0.57% $16,795 6.24% $12,392 2.21% $14,832
30-Apr-95 2.14% $17,238 2.95% $23,564 1.24% $17,004 3.76% $12,858 1.60% $15,069
31-May-95 3.56% $17,851 3.96% $24,498 3.02% $17,517 -1.19% $12,705 3.20% $15,551
30-Jun-95 1.17% $18,060 2.35% $25,073 0.67% $17,635 -1.75% $12,483 -0.15% $15,528
31-Jul-95 3.03% $18,608 3.33% $25,908 0.01% $17,636 6.23% $13,261 1.19% $15,713
31-Aug-95 -0.21% $18,568 0.23% $25,968 0.91% $17,797 -3.81% $12,756 0.71% $15,824
30-Sep-95 1.56% $18,858 4.17% $27,051 0.72% $17,925 1.95% $13,004 1.64% $16,084
31-Oct-95 0.35% $18,924 -0.28% $26,975 1.11% $18,124 -2.69% $12,654 1.04% $16,251
</TABLE>
<TABLE>
<CAPTION>
Average Annual Returns for Periods Ended 10/31/95
<S> <C>
1 Year 12.78%
2 Years 7.12%
3 Years 10.48%
4 Years 9.62%
5 Years 11.32%
Since Inception (11/18/88) 9.61%
</TABLE>
Performance data illustrated is historical. Past performance is not predictive
of future performance. Share price and return will vary so that a gain or loss
may be realized when shares are sold. All performance figures assume
reinvestment of dividends. Management fees and other expenses are included in
the Fund's performance; however, fees and expenses are not incorporated in the
S&P 500 Index, the Morgan Stanley Capital International EAFE Index, the Salomon
Non-U.S. Government Bond Index, or the Lehman Bros. Intermediate Government/
Corporate Index.
FREMONT MUTUAL FUNDS
5
<PAGE> 6
QUESTIONS & ANSWERS
The Fremont Asset Allocation Committee:
Dave Redo, Pete Landini, Bob Haddick, Vince Kuhn
FREMONT GLOBAL FUND (CONT'D.)
Q: What impact did economic developments have upon the Fund this year?
A: The "soft landing" of the U.S. economy during 1995 contributed
significantly to the Fund's results. The rapid economic growth in 1994
created inflation concerns, driving interest rates upward and pushing the
prices of financial assets downward. In early 1995, however, the U.S.
economy decelerated to a slow, sustainable pace, quieting fears of higher
inflation. Interest rates in most countries fell, while corporate profits
continued to expand. The resulting economic environment has proven very
positive for financial assets.
Q: What is the Fund's latest asset mix?
A: The Fund's asset mix as of October 31, 1995 is shown in the table on the
right. The Fund remains fully invested, with roughly 70% in global stocks
and an underweighting in global bonds. This asset allocation strategy
reflects our expectation that the global economic environment in the period
ahead will be rewarding.
FREMONT GLOBAL FUND ASSET MIX
<TABLE>
ASSET MIX ASSET MIX "NEUTRAL" LONG-TERM
ASSET CLASS 10/31/95 4/30/95 MIX ASSET MIX RANGES
<S> <C> <C> <C> <C>
STOCKS
U.S. 35% 27% 32.5%
Foreign 35% 32% 32.5%
--- --- -----
Total Stocks 70% 59% 65% 40% - 75%
Bonds
U.S. 10% 20% 13%
Foreign 15% 11% 17%
--- --- ---
Total Bonds 25% 31% 30% 12% - 55%
- ----------------------------------------------------------------------
CASH RESERVES 5% 10% 5% 2% - 48%
- ----------------------------------------------------------------------
TOTAL 100% 100% 100%
</TABLE>
(continued on page 7)
THE FREMONT GLOBAL FUND'S
GEOGRAPHIC DIVERSIFICATION AS OF OCTOBER 31, 1995
United Kingdom
2.5%
Continental Europe
21.4%
United States/
Canada
53.3%
Hong Kong/
Singapore/Malaysia
6.0%
Japan
5.1%
Emerging Markets:
Latin America
2.3%
Other Emerging Markets:
Including Thailand, Indonesia,
The Philippines,
South Korea and Others
7.7%
Australia/
New Zealand
1.7%
FREMONT MUTUAL FUNDS
6
<PAGE> 7
QUESTIONS & ANSWERS
The Fremont Asset Allocation Committee:
Dave Redo, Pete Landini, Bob Haddick, Vince Kuhn
FREMONT GLOBAL FUND (CONT'D.)
Q: What is your current outlook for the Fund?
A: We anticipate slow economic growth, stable inflation, declining interest
rates, and steady corporate earnings in the coming months -- all of which
should have a positive impact on global financial assets. We believe that
stocks in Southeast Asia and some European markets show the most potential
over the next several months. Southeast Asian markets should eventually
respond to lower U.S. interest rates and rising corporate earnings. In
Europe, corporate earnings should be quite solid and interest rates could
continue to decline. In addition, a degree of pessimism pervades all of
these markets, a factor that indicates that some very good values exist.
Sincerely,
The Fremont Asset Allocation Committee
Dave Redo Vince Kuhn
Pete Landini Bob Haddick
FREMONT MUTUAL FUNDS
7
<PAGE> 8
QUESTIONS & ANSWERS
Andrew L. Pang, Portfolio Manager
Fremont Investment Advisors, Inc.
FREMONT INTERNATIONAL GROWTH FUND
Q: How did the Fremont International Growth Fund perform for the fiscal year
ended October 31, 1995?
A: In a difficult year for international markets, the Fremont International
Growth Fund produced a total return of 0.13% for the period ended October
31, 1995. This performance compares favorably both with the performance of
other international funds and that of the Europe, Australia, & Far East
(EAFE) Index.
During the same period, the average total return for the funds comprising
the Lipper International category was -1.09%, while the EAFE Index of
international stocks returned -0.36%.
Q: What worked well during this period?
A: A number of profitable stock selections helped the Fund's performance.
Roche Holdings AG of Switzerland did very well during the past twelve
months, posting a total return of 65%, and Autoliv AB of Sweden was up 64%.
Not far behind was Finland's Nokia AB, with a total return of 55% for the
year ended October 31, 1995. In addition, we reduced the Fund's cash
position by roughly 6% in early April, allowing the Fund to participate
fully in the recoveries of many international stock markets.
Q: What was less successful?
A: The Fund's exposure to the developing markets in Latin America and Asia
added little to performance this past year. Southeast Asian markets rallied
sharply in the spring, only to slip back in the summer and fall. Our
current overweighting in emerging markets is one of the key strategies used
in managing the International Growth Fund. Although the portfolio will go
through cyclical phases as a result of its high emerging market content, we
believe that these markets will produce superior growth that will drive
stock prices much higher in the years ahead.
Q: What is your current strategy?
A: Our current allocations by region include 21% in Japan, 36% in other Asian
markets, 35% in Europe, 3% in Latin America and 5% in cash. Compared to the
EAFE Index, which does not include the emerging markets, we
(continued on page 9)
FREMONT INTERNATIONAL GROWTH FUND - Growth of $10,000*
* Assumes initial investment of $10,000 on inception date, March 1, 1994
<TABLE>
<CAPTION>
Fremont International
Growth Fund EAFE Index
--------------------- -------------------
Qtrly Qtrly
Return Balance Return Balance
------ ------- ------ -------
<S> <C> <C> <C> <C>
01-Mar-94 $10,000 $10,000
31-Mar-94 -3.66% $ 9,634 -4.31% $ 9,569
30-Apr-94 0.33% $ 9,666 4.24% $ 9,975
31-May-94 0.11% $ 9,676 -0.57% $ 9,918
30-Jun-94 -1.94% $ 9,488 1.41% $10,058
31-Jul-94 2.42% $ 9,718 0.96% $10,155
31-Aug-94 4.73% $10,178 2.37% $10,395
30-Sep-94 -1.44% $10,031 -3.15% $10,068
31-Oct-94 1.98% $10,230 3.33% $10,403
30-Nov-94 -4.80% $ 9,739 -4.81% $ 9,903
31-Dec-94 -0.51% $ 9,689 0.63% $ 9,965
31-Jan-95 -6.90% $ 9,020 -3.84% $ 9,582
28-Feb-95 1.97% $ 9,198 -0.29% $ 9,555
31-Mar-95 2.05% $ 9,386 6.24% $10,151
30-Apr-95 3.34% $ 9,699 3.76% $10,533
31-May-95 2.59% $ 9,950 -1.19% $10,407
30-Jun-95 2.10% $10,159 -1.75% $10,225
31-Jul-95 5.66% $10,734 6.23% $10,862
31-Aug-95 -2.43% $10,473 -3.81% $10,448
30-Sep-95 0.70% $10,546 1.95% $10,652
31-Oct-95 -2.87% $10,243 -2.69% $10,366
</TABLE>
<TABLE>
<CAPTION>
Average Annual Returns for Periods Ended 10/31/95
<S> <C>
1 Year 0.13%
Since Inception (3/1/94) 1.45%
</TABLE>
Performance data illustrated is historical. Past performance is not predictive
of future performance. Share price and return will vary so that a gain or loss
may be realized when shares are sold. All performance figures assume
reinvestment of dividends. Management fees and other expenses are included in
the Fund's performance; however, fees and expenses are not incorporated in the
Morgan Stanley Capital International EAFE Index.
FREMONT MUTUAL FUNDS
8
<PAGE> 9
QUESTIONS & ANSWERS
Andrew L. Pang, Portfolio Manager
Fremont Investment Advisors, Inc.
FREMONT INTERNATIONAL GROWTH FUND (CONT'D.)
are continuing to underweight the Japanese and European markets and
overweight the emerging markets of Southeast Asia. We are especially
enthusiastic about the potential for the Southeast Asian markets where we
are forecasting a long-term growth rate of 6 to 7% -- well beyond the 2 to
3% expected growth the major industrialized countries.
Q: What is your current outlook for the Fund?
A: In 1995, interest rates in most countries fell and corporate profits
continued to expand. Slow, non-inflationary growth in the global economy
continues to be a positive market force. As we enter fiscal 1996, we
anticipate a more favorable environment for international financial assets,
and continue to believe that the greatest potential will be found in
Southeast Asian stocks, as well as in some European markets.
While they have been slow to respond to declining U.S. interest rates and
rising international corporate earnings, the markets of Southeast Asia
should eventually react positively. In Europe, solid corporate earnings and
declining interest rates should continue. Finally, we plan to invest in a
number of well-priced stocks as many investors remain on the sidelines
waiting for the markets to rebound.
Sincerely,
Andrew L. Pang
Portfolio Manager
NOTE:
On September 1, 1995, Fremont Investment Advisors replaced Sit/Kim
International Investment Associates, Inc. as the advisor for the Fremont
International Growth Fund.
THE FREMONT INTERNATIONAL GROWTH FUND'S
GEOGRAPHIC DIVERSIFICATION AS OF OCTOBER 31, 1995
United Kingdom
5.0%
Continental Europe
29.7%
United States
5.1% (cash)
Hong Kong/
Singapore/Malaysia
14.2%
Japan
21.4%
Emerging Markets:
Latin America
3.4%
Other Emerging Markets:
Including Thailand,
The Philippines, Indonesia, Taiwan
and Others
17.8%
Australia/
New Zealand
3.4%
FREMONT MUTUAL FUNDS
9
<PAGE> 10
QUESTIONS & ANSWERS
Dr. Gary L. Bergstrom, Portfolio Manager
Acadian Asset Management, Inc.
FREMONT INTERNATIONAL SMALL CAP FUND
Q: How did the Fremont International Small Cap Fund perform for the fiscal
year ended October 31, 1995?
A: The Fremont International Small Cap Fund produced a total return of -7.96%
for the fiscal year. During the same twelve months, the Salomon Brothers
Extended Market Index of the Europe and Pacific countries (EMI) recorded a
return of -4.70%. The average for funds comprising the Lipper
International Small Company category was -2.75%.
Q: What worked well for the Fund during this period?
A: The Fund's Japanese investments were limited during the entire period,
which protected investors from the effects of a volatile year. At the same
time, the vast depth and breadth of the Japanese market made it possible to
buy a number of stocks that performed extremely well. Stock selection also
contributed positively to portfolio performance in the U.K., as this market
reached all-time highs and smaller, value-oriented stocks did well. A
relatively strong presence in the Australia and New Zealand markets, as
well as the emerging markets of Turkey, Greece and Thailand, also
contributed to returns.
Q: What strategies were less successful?
A: The weak dollar and Mexican economic crisis shook investor confidence and
resulted in volatile international markets during the first half of the
fiscal year. This hurt the returns of smaller, value-oriented stocks as
investors moved towards larger, growth-oriented stocks. Extremely small
"micro-cap" foreign stocks, like many of those held by the Fund, proved
particularly vulnerable. While this trend reversed itself in the third
quarter, it nevertheless had a substantial negative impact on the Fund's
performance.
In terms of specific portfolio selections, the Fund's relatively strong
presence in France had a mixed effect, adding value in the first half but
detracting from returns later on. Our comparatively light participation in
the German market had a negative effect during the first three quarters,
but has recently begun to pay off. In addition, some emerging markets
investments dampened performance, particularly during the first half of the
year.
Q: What changes were made to the country allocations during the year?
(continued on page 11)
FREMONT INTERNATIONAL SMALL CAP FUND - Growth of $10,000*
* Assumes initial investment of $10,000 on inception date, June 30, 1994.
<TABLE>
<CAPTION>
Fremont International Salomon Brothers
Small Cap Fund EMI Index
--------------------- ------------------
Qtrly Qtrly
Return Balance Return Balance
------ ------- ------ -------
<S> <C> <C> <C> <C>
30-Jun-94 $10,000 $10,000
31-Jul-94 1.30% $10,130 1.14% $10,114
31-Aug-94 2.37% $10,370 1.06% $10,221
30-Sep-94 -4.34% $ 9,920 -2.86% $ 9,929
31-Oct-94 -0.60% $ 9,860 1.81% $10,109
30-Nov-94 -5.58% $ 9,310 -6.24% $ 9,478
31-Dec-94 -3.11% $ 9,020 1.34% $ 9,605
31-Jan-95 -5.32% $ 8,540 -3.25% $ 9,293
28-Feb-95 -0.94% $ 8,460 -1.46% $ 9,157
31-Mar-95 2.25% $ 8,650 4.25% $ 9,546
30-Apr-95 3.47% $ 8,950 3.00% $ 9,833
31-May-95 2.57% $ 9,180 -1.75% $ 9,660
30-Jun-95 -0.98% $ 9,090 -1.23% $ 9,542
31-Jul-95 5.61% $ 9,600 5.83% $10,098
31-Aug-95 -2.19% $ 9,390 -2.53% $ 9,842
30-Sep-95 0.43% $ 9,430 0.78% $ 9,919
31-Oct-95 -3.76% $ 9,075 -2.88% $ 9,634
</TABLE>
<TABLE>
<CAPTION>
Average Annual Returns for Periods Ended 10/31/95
<S> <C>
1 Year -7.96%
Since Inception (6/30/94) -7.01%
</TABLE>
Performance data illustrated is historical. Past performance is not predictive
of future performance. Share price and return will vary so that a gain or loss
may be realized when shares are sold. All performance figures assume
reinvestment of dividends. Management fees and other expenses are included in
the Fund's performance; however, fees and expenses are not incorporated in the
Salomon Brothers Extended Market Index.
FREMONT MUTUAL FUNDS
10
<PAGE> 11
QUESTIONS & ANSWERS
Dr. Gary L. Bergstrom, Portfolio Manager
Acadian Asset Management, Inc.
FREMONT INTERNATIONAL SMALL CAP FUND (CONT'D.)
A: During the first six months, the most significant changes to the portfolio
involved an increased allocation to emerging markets, which started at
roughly 7% of the portfolio and grew to 28%. In the developed markets, we
reduced our emphasis on Japan during the first half of the year, but
recently increased it again. Allocations in France and Germany remained
fairly steady throughout the year.
Q: What is the Fund's current strategy?
A: While small cap stocks have recently underperformed larger stocks, this
trend may be reversing. Over the long term, smaller cap stocks have
significantly outperformed other sectors, and we believe they will do so in
the future. Based on this belief, the portfolio continues to emphasize
smaller micro-cap stocks, and companies that tend to be either cyclical or
sensitive to changes.
The portfolio currently emphasizes a range of attractive developed markets,
such as France, Canada, Hong Kong, the Netherlands and Australia, as well
as relatively liquid markets in expanding economies, such as those of
Brazil, Thailand, and Greece.
Overall, it is our view that a value-oriented small cap approach will
prosper in the coming months. More importantly, we believe the Fund's
investment process, which combines a fundamental value approach with
earnings growth trends and other important data, will be successful in
identifying formance small cap companies for the Fund's portfolio.
Sincerely,
Dr. Gary L. Bergstrom
Portfolio Manager
ABOUT THE
SUB-ADVISOR:
Acadian Asset Management Inc.
manages over $2 billion
in international small cap portfolios.
THE FREMONT INTERNATIONAL SMALL CAP FUND'S
GEOGRAPHIC DIVERSIFICATION AS OF OCTOBER 31, 1995
United Kingdom
5.7%
Continental Europe
28.2%
United States/
Canada
3.6%
Hong Kong/
Singapore/Malaysia
12.3%
Japan
14.6%
Emerging Markets:
Latin America
11.0%
Other Emerging Markets:
Including Greece, Thailand,
South Africa, Czech Republic, Turkey
and Others
16.7%
Australia/
New Zealand
7.9%
FREMONT MUTUAL FUNDS
11
<PAGE> 12
QUESTIONS & ANSWERS
Robert E. Kern, Portfolio Manager
Morgan Grenfell Capital Management, Inc.
FREMONT U.S. MICRO-CAP FUND
Q: How did the Fremont U.S. Micro-Cap Fund perform for the fiscal year ended
October 31, 1995?
A: For the year, the U.S. Micro-Cap Fund posted an impressive return of
38.68%, outperforming the Russell 2000 Index by more than a two-to-one
margin. The Russell 2000 Index, a widely-used gauge of small company
performance, rose a much lower 18.32% over the same period.
Q: Why did the fund perform so well?
A: The overall investment environment for stocks was very favorable throughout
fiscal 1995. A combination of relatively low inflation, declining interest
rates and strong growth in corporate earnings produced excellent stock
market performance. In general, however, larger company stocks tended to
outperform smaller companies, as evidenced by the 26.39% increase in the
S&P 500 Index. The fact that the performance of the U.S. Micro-Cap Fund
outpaced even this figure indicates that superior stock selection was at
the heart of the Fund's success.
Q: How does the Fund's performance compare with that of other micro-cap
funds?
A: The Fund's strategy of searching out successful micro-cap companies that
have the potential to develop into tomorrow's small cap, medium cap and, in
some cases, large cap companies proved extremely successful during the
fiscal year. Reliance on this strategy allowed the Fund to outperform most
other micro-cap funds.
Q: What strategies worked well for the Fund?
A: Investments in early-stage emerging growth companies had a dramatic impact
on the Fund's overall success. This was especially true of technology
stocks, which led the market throughout most of the year. Verity Inc.,
Garden Ridge Corp., Veritas Software, Delta and Pine Land, and PRI
Automation provided the most substantial gains for the Fund.
Equally important to the Fund's overall success was our ability to minimize
losses. Over the course of the year, gains were roughly three times greater
than losses.
Q: What aspects were less successful?
(continued on page 13)
FREMONT U.S. MICRO-CAP FUND - Growth of $10,000*
* Assumes initial investment of $10,000 on inception date, June 30, 1994.
<TABLE>
<CAPTION>
Fremont U.S.
Micro-Cap Fund Russell 2000 Index
------------------ ------------------
Qtrly Qtrly
Return Balance Return Balance
------ ------- ------ -------
<S> <C> <C> <C> <C>
30-Jun-94 $10,000 $10,000
31-Jul-94 2.20% $10,220 1.64% $10,164
31-Aug-94 0.98% $10,320 5.57% $10,730
30-Sep-94 1.45% $10,470 -0.34% $10,694
31-Oct-94 -1.05% $10,360 -0.40% $10,651
30-Nov-94 -3.48% $10,000 -4.04% $10,221
31-Dec-94 1.50% $10,150 2.68% $10,494
31-Jan-95 1.97% $10,350 -1.26% $10,362
28-Feb-95 3.10% $10,671 4.16% $10,793
31-Mar-95 4.23% $11,122 1.71% $10,978
30-Apr-95 2.43% $11,392 2.22% $11,222
31-May-95 4.57% $11,913 1.72% $11,415
30-Jun-95 4.88% $12,495 5.19% $12,007
31-Jul-95 6.82% $13,346 5.76% $12,699
31-Aug-95 6.31% $14,188 2.07% $12,961
30-Sep-95 2.54% $14,549 1.79% $13,193
31-Oct-95 -1.24% $14,368 -4.48% $12,602
</TABLE>
<TABLE>
<CAPTION>
Average Annual Returns for Periods Ended 10/31/95
<S> <C>
1 Year 38.68%
Since Inception (6/30/94) 31.16%
</TABLE>
Performance data illustrated is historical. Past performance is not predictive
of future performance. Share price and return will vary so that a gain or loss
may be realized when shares are sold. All performance figures assume
reinvestment of dividends. Management fees and other expenses are included in
the Fund's performance; however, fees and expenses are not incorporated in the
Russell 2000 Index.
FREMONT MUTUAL FUNDS
12
<PAGE> 13
QUESTIONS & ANSWERS
Robert E. Kern, Portfolio Manager
Morgan Grenfell Capital Management, Inc.
FREMONT U.S. MICRO-CAP FUND (CONT'D.)
A: While successful stock selections far outweighed unsuccessful ones, several
disappointing investments prevented the Fund from reaching even higher
levels of performance. The largest loss resulted from an investment in
Vmark Software which experienced problems integrating an acquisition.
Q: What is your current outlook for U.S. micro-cap stocks?
A: Micro-cap stocks are becoming more widely recognized as a separate asset
class. During the past year, more investment advisers and institutional
investors have recognized the benefits of micro-cap investing -- the
potential of higher long-term rates of return and better diversification --
as well as the importance of specialized micro-cap investment management.
The result has been an increase in cash flows into the micro-cap
sector of the market.
We expect the trend toward micro-cap investing to accelerate. With roughly
4,000 publicly-traded companies having market capitalizations between $10
million and $225 million, there is a huge opportunity to find successful
micro-cap companies before they become widely recognized by other
investors.
Stock selection is the "key to success" in micro-cap investing, and we
believe that our fundamental approach to investment research -- financial
analysis combined with company visits and the discussion of overall
strategies with top management -- provides the Fund with the opportunity
for continued exceptional performance.
As we enter fiscal 1996, we are optimistic that well-selected micro-cap
companies will provide excellent returns to investors in the Fremont U.S.
Micro-Cap Fund.
Sincerely,
Robert E. Kern
Portfolio Manager
ABOUT THE
SUB-ADVISOR:
Morgan Grenfell Capital Management, Inc.
manages over $500
million in small- and micro-cap stocks.
FREMONT MUTUAL FUNDS
13
<PAGE> 14
FREMONT GROWTH FUND - Growth of $10,000*
* Assumes initial investment of $10,000 on inception date, August 14, 1992.
<TABLE>
<CAPTION>
Fremont Growth Fund S&P 500 Index
------------------- ------------------
Qtrly Qtrly
Return Balance Return Balance
------ ------- ------ -------
<S> <C> <C> <C> <C>
14-Aug-92 $10,000 $10,000
31-Aug-92 -1.01% $ 9,899 -1.27% $ 9,873
30-Sep-92 1.93% $10,091 1.15% $ 9,987
31-Oct-92 1.08% $10,200 0.36% $10,023
30-Nov-92 4.46% $10,655 3.37% $10,361
31-Dec-92 1.57% $10,822 1.30% $10,495
31-Jan-93 1.22% $10,954 0.73% $10,572
28-Feb-93 -1.02% $10,843 1.36% $10,716
31-Mar-93 1.50% $11,005 2.15% $10,947
30-Apr-93 -3.60% $10,609 -2.45% $10,679
31-May-93 2.40% $10,863 2.67% $10,964
30-Jun-93 0.75% $10,945 0.33% $11,000
31-Jul-93 -0.09% $10,935 -0.49% $10,946
31-Aug-93 3.36% $11,302 3.78% $11,359
30-Sep-93 0.99% $11,414 -0.74% $11,276
31-Oct-93 0.80% $11,506 2.05% $11,507
30-Nov-93 -2.04% $11,270 -0.90% $11,404
31-Dec-93 2.18% $11,516 1.23% $11,544
31-Jan-94 3.40% $11,907 3.36% $11,932
28-Feb-94 -3.11% $11,536 -2.71% $11,608
31-Mar-94 -5.27% $10,929 -4.34% $11,104
30-Apr-94 1.13% $11,052 1.29% $11,248
31-May-94 0.37% $11,093 1.63% $11,432
30-Jun-94 -3.35% $10,722 -2.47% $11,149
31-Jul-94 4.04% $11,155 3.31% $11,518
31-Aug-94 5.10% $11,724 4.07% $11,986
30-Sep-94 -2.12% $11,476 -2.42% $11,696
31-Oct-94 1.98% $11,704 2.30% $11,965
30-Nov-94 -3.15% $11,335 -3.67% $11,526
31-Dec-94 2.02% $11,563 1.47% $11,695
31-Jan-95 0.40% $11,609 2.59% $11,998
28-Feb-95 3.25% $11,987 3.87% $12,463
31-Mar-95 2.67% $12,307 2.96% $12,832
30-Apr-95 2.14% $12,570 2.95% $13,210
31-May-95 3.28% $12,982 3.96% $13,733
30-Jun-95 4.93% $13,622 2.35% $14,056
31-Jul-95 4.45% $14,228 3.33% $14,524
31-Aug-95 1.37% $14,423 0.23% $14,557
30-Sep-95 3.89% $14,983 4.17% $15,164
31-Oct-95 0.08% $14,995 -0.28% $15,122
</TABLE>
<TABLE>
<CAPTION>
Average Annual Returns for Periods Ended 10/31/95
<S> <C>
1 Year 28.12%
2 Years 14.17%
3 Years 13.72%
Since Inception (08/14/92) 13.44%
</TABLE>
Performance data illustrated is historical. Past performance is not predictive
of future performance. Share price and return will vary so that a gain or loss
may be realized when shares are sold. All performance figures assume
reinvestment of dividends. Management fees and other expenses are included in
the Fund's performance; however, fees and expenses are not incorporated in the
S&P 500 Index.
QUESTIONS & ANSWERS
Andrew L. Pang, Fremont Investment Advisors, Inc.
Eugene C. Sit, Sit Investment Associates, Inc.
FREMONT GROWTH FUND
Q: How did the Fremont Growth Fund perform for the fiscal year ended October
31, 1995?
A: The Fremont Growth Fund produced a total return of 28.12% for the fiscal
year ended October 31, 1995. This compares favorably both with the 26.39%
return posted by the S&P 500 Index and the 18.32% return of the Russell
2000 Index.
The Fund also outpaced other growth funds. The average return
for the funds in the Lipper Growth category was 22.14% -- approximately 6%
less than that of the Fremont Growth Fund.
Q: What worked well during this period?
A: Larger companies significantly outperformed smaller companies for the Fund,
during the twelve-month period. Two of the Fund's most heavily weighted
industry groups, technology and health care, performed very well. Among the
top performers were Micron Technology (253%), Cisco Systems (157%) and
Xilinx (137%).
Q: What strategies were less successful?
A: The retail sector was weak throughout the year. Even with only 4% of the
Fund's assets invested in the retail sector, poor performance by such
well-known companies as Toys R Us, Home Depot and Wal-Mart had a negative
impact on overall performance.
Q: What is the Fund's current strategy?
A: Throughout the past year, we slowly moved the Fund toward a more
growth-oriented stance. The fund was fully invested with cash reserves of
only 4% on October 31, 1995. We continue to emphasize technology stocks
(23% of the Fund's portfolio) and health care stocks (16%) based upon our
projections of continued strong earnings growth in these sectors.
Q: What is your current outlook for the Fund?
A: The Federal Reserve appears to have pulled off the "soft landing" it was
striving for, creating an outstanding environment for stock market
investing. As long as the economy continues to grow at a modest pace and
inflation remains under control, the Fremont Growth Fund should continue
to perform well.
Sincerely,
Andrew L. Pang
Eugene C. Sit
Portfolio Managers
FREMONT MUTUAL FUNDS
14
<PAGE> 15
QUESTIONS & ANSWERS
Bill Gross, Portfolio Manager
Pacific Investment Management Company
FREMONT BOND FUND
Q: How did the Fremont Bond Fund perform for the fiscal year ended October
31,1995?
A: The Fremont Bond Fund returned 16.49% for the fiscal year, outpacing the
15.65% performance of the Lehman Brothers Aggregate Bond Index during the
same period.
Q: What strategies worked well for the Fund during this period?
A: Federal Reserve policy played a major role in the bond market and our
portfolio strategy. Early in the year, the Fed raised rates to slow the
rapid economic growth to a more modest pace. The Fed then cut rates in
July. While this environment created turbulence in bond prices, it also
presented opportunities that the Fund was able to capitalize upon.
For much of the year, we maintained relatively long average maturities
within the Fund's portfolio, allowing the Fund to capture more capital
appreciation, which in turn boosted returns. In addition, the Fund
benefitted as we adjusted exposures to emphasize the most attractive
portion of the yield curve. Our allocation to currency-hedged German bonds
was another plus, as these securities outperformed U.S. bonds.
Q: What strategies were less successful?
A: Over most of the year, we de-emphasized corporate bonds, feeling that their
added risk did not justify the additional yields they offered relative to
Treasury securities. As it turned out, corporate bonds were the top
performers in the U.S. market, with lower-quality issues posting the
strongest gains.
Q: What is your current strategy for the Fund?
A: We expect interest rates to continue downward over the next several
quarters and will maintain a higher average maturity to take advantage of
capital gains. We will also continue to limit emphasis on intermediate and
long corporate bonds. Within the mortgage sector, we expect to selectively
reduce prepayment exposure. Finally, we will continue to invest in
international bonds, focusing on the core European markets.
Sincerely,
Bill Gross
Portfolio Manager
ABOUT THE
SUB-ADVISOR:
Pacific Investment Management Co. (PIMCO) manages over $50 billion for
institutions and is the sub-advisor for the Bond Fund.
FREMONT BOND FUND - Growth of $10,000*
* Assumes initial investment of $10,000 on inception date, April 30, 1993.
<TABLE>
<CAPTION>
Lehman Bros.
Fremont Bond Fund Aggregate Bond Index
----------------- --------------------
Qtrly Qtrly
Return Balance Return Balance
------ ------- ------ -------
<S> <C> <C> <C> <C>
30-Apr-93 $10,000 $10,000
31-May-93 -0.37% $9,963 0.13% $10,013
30-Jun-93 2.20% $10,182 1.81% $10,194
31-Jul-93 0.16% $10,198 0.57% $10,252
31-Aug-93 2.12% $10,415 1.75% $10,432
30-Sep-93 0.63% $10,481 0.27% $10,460
31-Oct-93 0.32% $10,515 0.37% $10,499
30-Nov-93 -1.41% $10,366 -0.85% $10,410
31-Dec-93 0.68% $10,437 0.54% $10,466
31-Jan-94 1.42% $10,585 1.35% $10,607
28-Feb-94 -1.86% $10,388 -1.74% $10,423
31-Mar-94 -2.32% $10,147 -2.47% $10,166
30-Apr-94 -0.97% $10,049 -0.80% $10,085
31-May-94 -0.89% $9,959 -0.01% $10,083
30-Jun-94 0.66% $10,025 -0.22% $10,061
31-Jul-94 1.79% $10,205 1.99% $10,261
31-Aug-94 0.25% $10,230 0.12% $10,274
30-Sep-94 -1.21% $10,106 -1.47% $10,123
31-Oct-94 -0.55% $10,050 -0.09% $10,114
30-Nov-94 -0.30% $10,020 -0.22% $10,091
31-Dec-94 -0.02% $10,018 0.69% $10,161
31-Jan-95 2.23% $10,242 1.98% $10,362
28-Feb-95 2.74% $10,522 2.38% $10,609
31-Mar-95 0.94% $10,621 0.61% $10,674
30-Apr-95 1.90% $10,823 1.40% $10,823
31-May-95 3.74% $11,228 3.87% $11,242
30-Jun-95 0.63% $11,299 0.73% $11,324
31-Jul-95 -0.32% $11,263 -0.22% $11,299
31-Aug-95 1.19% $11,397 1.21% $11,436
30-Sep-95 1.16% $11,530 0.97% $11,547
31-Oct-95 1.54% $11,707 1.30% $11,697
</TABLE>
<TABLE>
<CAPTION>
Average Annual Returns for Periods Ended 10/31/95
<S> <C>
1 Year 16.49%
2 Years 5.52%
Since Inception (4/30/93) 6.50%
</TABLE>
Performance data illustrated is historical. Past performance is not predictive
of future performance. Share price and return will vary so that a gain or loss
may be realized when shares are sold. All performance figures assume
reinvestment of dividends. Management fees and other expenses are included in
the Fund's performance; however, fees and expenses are not incorporated in the
Lehman Bros. Aggregate Bond Index.
FREMONT MUTUAL FUNDS
15
<PAGE> 16
FREMONT MONEY MARKET FUND - Growth of $10,000*
* Assumes initial investment of $10,000 on inception date, November 18, 1988.
<TABLE>
<CAPTION>
U.S. 91-Day Donoghue First Tier
Fremont Money Market Fund T-Bill Index Taxable Average
------------------------- ------------------ -------------------
Qtrly Qtrly Qtrly
Return Balance Return Balance Return Balance
------ ------- ------ ------- ------ -------
<S> <C> <C> <C> <C> <C> <C>
18-Nov-88 $10,000 $10,000 $10,000
30-Nov-88 0.27% $10,027 0.26% $10,026 0.25% $10,025
31-Dec-88 0.68% $10,096 0.67% $10,093 0.65% $10,090
31-Jan-89 0.74% $10,170 0.69% $10,163 0.68% $10,159
28-Feb-89 0.65% $10,237 0.72% $10,236 0.68% $10,228
31-Mar-89 0.77% $10,315 0.73% $10,311 0.71% $10,300
30-Apr-89 0.72% $10,389 0.70% $10,383 0.74% $10,377
31-May-89 0.83% $10,475 0.71% $10,457 0.73% $10,452
30-Jun-89 0.74% $10,552 0.66% $10,526 0.72% $10,528
31-Jul-89 0.73% $10,630 0.63% $10,592 0.69% $10,600
31-Aug-89 0.71% $10,705 0.65% $10,661 0.66% $10,670
30-Sep-89 0.65% $10,775 0.66% $10,731 0.66% $10,741
31-Oct-89 0.72% $10,852 0.76% $10,813 0.66% $10,812
30-Nov-89 0.66% $10,924 0.69% $10,887 0.64% $10,881
31-Dec-89 0.63% $10,993 0.62% $10,955 0.63% $10,949
31-Jan-90 0.67% $11,067 0.66% $11,027 0.62% $11,017
28-Feb-90 0.59% $11,132 0.60% $11,093 0.61% $11,084
31-Mar-90 0.63% $11,202 0.67% $11,168 0.61% $11,152
30-Apr-90 0.66% $11,276 0.65% $11,240 0.62% $11,221
31-May-90 0.66% $11,350 0.68% $11,317 0.62% $11,291
30-Jun-90 0.62% $11,420 0.65% $11,390 0.61% $11,360
31-Jul-90 0.68% $11,498 0.66% $11,465 0.61% $11,429
31-Aug-90 0.65% $11,573 0.65% $11,540 0.60% $11,498
30-Sep-90 0.58% $11,640 0.61% $11,610 0.60% $11,567
31-Oct-90 0.68% $11,719 0.62% $11,682 0.60% $11,636
30-Nov-90 0.62% $11,792 0.59% $11,751 0.59% $11,704
31-Dec-90 0.64% $11,867 0.59% $11,821 0.59% $11,773
31-Jan-91 0.62% $11,941 0.57% $11,888 0.56% $11,839
28-Feb-91 0.53% $12,005 0.49% $11,946 0.52% $11,901
31-Mar-91 0.50% $12,065 0.52% $12,008 0.49% $11,959
30-Apr-91 0.57% $12,134 0.48% $12,066 0.47% $12,015
31-May-91 0.50% $12,195 0.48% $12,124 0.44% $12,068
30-Jun-91 0.44% $12,249 0.46% $12,180 0.44% $12,121
31-Jul-91 0.52% $12,312 0.48% $12,238 0.44% $12,174
31-Aug-91 0.46% $12,369 0.47% $12,296 0.43% $12,227
30-Sep-91 0.47% $12,427 0.44% $12,350 0.42% $12,278
31-Oct-91 0.44% $12,482 0.44% $12,404 0.41% $12,328
30-Nov-91 0.39% $12,531 0.40% $12,454 0.39% $12,375
31-Dec-91 0.42% $12,584 0.37% $12,500 0.38% $12,422
31-Jan-92 0.37% $12,630 0.35% $12,543 0.34% $12,464
29-Feb-92 0.30% $12,668 0.31% $12,582 0.31% $12,502
31-Mar-92 0.31% $12,708 0.34% $12,625 0.30% $12,540
30-Apr-92 0.29% $12,744 0.32% $12,666 0.29% $12,576
31-May-92 0.27% $12,779 0.33% $12,707 0.28% $12,612
30-Jun-92 0.30% $12,817 0.30% $12,745 0.28% $12,647
31-Jul-92 0.27% $12,852 0.30% $12,784 0.26% $12,680
31-Aug-92 0.26% $12,885 0.28% $12,819 0.25% $12,711
30-Sep-92 0.24% $12,917 0.25% $12,852 0.24% $12,741
31-Oct-92 0.24% $12,947 0.25% $12,884 0.22% $12,769
30-Nov-92 0.24% $12,978 0.25% $12,916 0.22% $12,798
31-Dec-92 0.23% $13,008 0.27% $12,951 0.23% $12,828
31-Jan-93 0.21% $13,036 0.27% $12,986 0.23% $12,857
28-Feb-93 0.20% $13,062 0.23% $13,016 0.22% $12,885
31-Mar-93 0.24% $13,093 0.25% $13,048 0.21% $12,912
30-Apr-93 0.22% $13,122 0.24% $13,080 0.21% $12,939
31-May-93 0.20% $13,148 0.25% $13,113 0.21% $12,967
30-Jun-93 0.23% $13,178 0.25% $13,147 0.21% $12,994
31-Jul-93 0.22% $13,208 0.26% $13,181 0.21% $13,021
31-Aug-93 0.21% $13,235 0.26% $13,215 0.21% $13,049
30-Sep-93 0.21% $13,263 0.25% $13,248 0.21% $13,076
31-Oct-93 0.22% $13,291 0.26% $13,282 0.21% $13,104
30-Nov-93 0.21% $13,320 0.25% $13,315 0.21% $13,132
31-Dec-93 0.24% $13,351 0.26% $13,351 0.22% $13,161
31-Jan-94 0.21% $13,379 0.26% $13,385 0.22% $13,189
28-Feb-94 0.20% $13,406 0.24% $13,418 0.22% $13,218
31-Mar-94 0.23% $13,437 0.28% $13,455 0.23% $13,248
30-Apr-94 0.25% $13,470 0.30% $13,496 0.25% $13,281
31-May-94 0.31% $13,512 0.33% $13,540 0.27% $13,317
30-Jun-94 0.32% $13,556 0.34% $13,586 0.29% $13,356
31-Jul-94 0.35% $13,603 0.36% $13,636 0.31% $13,397
31-Aug-94 0.36% $13,651 0.37% $13,687 0.32% $13,439
30-Sep-94 0.36% $13,701 0.37% $13,737 0.34% $13,485
31-Oct-94 0.40% $13,755 0.41% $13,794 0.35% $13,532
30-Nov-94 0.41% $13,812 0.42% $13,852 0.37% $13,582
31-Dec-94 0.50% $13,880 0.46% $13,915 0.40% $13,636
31-Jan-95 0.45% $13,943 0.46% $13,979 0.42% $13,694
28-Feb-95 0.45% $14,006 0.44% $14,041 0.44% $13,754
31-Mar-95 0.54% $14,081 0.49% $14,110 0.45% $13,816
30-Apr-95 0.46% $14,145 0.48% $14,177 0.45% $13,877
31-May-95 0.50% $14,216 0.49% $14,247 0.44% $13,939
30-Jun-95 0.51% $14,289 0.47% $14,314 0.44% $14,000
31-Jul-95 0.46% $14,355 0.49% $14,384 0.43% $14,060
31-Aug-95 0.48% $14,423 0.47% $14,452 0.43% $14,120
30-Sep-95 0.47% $14,492 0.45% $14,517 0.42% $14,180
31-Oct-95 0.46% $14,558 0.46% $14,583 0.42% $14,239
</TABLE>
<TABLE>
<CAPTION>
Average Annual Returns for Periods Ended 10/31/95
<S> <C>
1 Year 5.84%
2 Years 4.66%
3 Years 3.99%
4 Years 3.92%
5 Years 4.43%
Since Inception (11/18/88) 5.55%
</TABLE>
Performance data illustrated is historical. Past performance is not predictive
of future performance. Share price and return will vary so that a gain or loss
may be realized when shares are sold. All performance figures assume
reinvestment of dividends. Management fees and other expenses are included in
the Fund's performance; however, fees and expenses are not incorporated in the
U.S. 91-Day T-Bill Index. An investment in the Fund is neither insured nor
guaranteed by the U.S. Government. The Fund seeks to maintain a stable $1.00
share price although there is no assurance that it will be able to do so.
QUESTIONS & ANSWERS
Norman Gee, Portfolio Manager
Fremont Investment Advisors, Inc.
FREMONT MONEY MARKET FUND
Q. How did the Fremont Money Market Fund perform for the fiscal year
ended October 31, 1995?
A. The Money Market Fund produced a total return of 5.84% for the twelve
months ending October 31, 1995, ranking the Fund among the top 5% of
taxable money market funds for the entire year.
During the fiscal year, the Donoghue First Tier Taxable Average posted a
return of 5.24%.
Q. What worked well for the Fund during this period?
A. We maintained a conservative strategy over the first few months of the
fiscal year, waiting for a clearer picture of which direction the Federal
Reserve would take in adjusting interest rates. Throughout this period, we
kept the Fund's average maturity close to the average of the money market
funds tracked in the Donoghue First Tier Money Market Fund universe. After
rates were lowered in February, we lengthened the average maturity.
Q. What strategies were less successful?
A. The strength of the U.S. economy was extremely difficult to predict during
fiscal 1995. In hindsight, the Fund would have done better if we had
begun lengthening the average maturity a few weeks earlier.
Q. What is your current strategy?
A. We believe the Federal Reserve has reached its goal of slowing economic
growth to a sustainable rate. As a result, we expect short-term interest
rates to continue downward.
Because the Fund invests in securities with maturities of one year or less,
our current strategy is to keep the Fund's average maturity considerably
longer than that of the Donoghue universe average. This will allow us to
maximize the yields of the Fund.
Sincerely,
Norman Gee
Portfolio Manager
FREMONT MUTUAL FUNDS
16
<PAGE> 17
QUESTIONS & ANSWERS
William M. Feeney, Portfolio Manager
Fremont Investment Advisors, Inc.
FREMONT CALIFORNIA INTERMEDIATE TAX-FREE FUND
Q: How did the California Intermediate Tax-Free Fund perform for the fiscal
year ended October 31, 1995?
A: The Fremont California Intermediate Tax-Free Fund returned 12.77% for the
one-year period ended October 31, 1995, performing significantly better than
the Lehman Brothers 5-Year State Government Obligation (G.O.) Index, which
rose 10.37% during the fiscal year.
Q: Why did the fund perform so well?
A: The Fund maintained an average maturity in excess of eight years throughout
the 12-month period. This strategy was designed to take advantage of two
important market predictions. First, we forecasted that a decrease in
interest rates was likely to take place in 1995, which typically boosts the
performance of a portfolio with a longer average maturity. Second, we
anticipated that the California municipal bond market would be
under-supplied, keeping demand and prices at a high level. In both cases,
our predictions were correct.
Q: What impact did economic conditions have upon the Fund's performance?
A: The Fund benefited from the end of the California recession and the
compromise struck in the Orange County bankruptcy. As the state recovered
from the longest recession in its history, investors regained confidence in
California municipal bonds. While the Orange County bankruptcy had no direct
impact on the Fund, its ultimate outcome had a settling effect on the
California municipal bond market.
Q: What is your current strategy for the Fund?
A: Based on current projections, we will continue to maintain an average
maturity of eight years for the remainder of 1995. As the California economy
gains momentum, we expect to move into more general obligation bonds, and
perhaps to a limited number of lower-rated bonds. With a continued scarcity
of new bonds and a strong economy leading the way, the outlook for the
California municipal bond market is very good.
Sincerely,
William M. Feeney
Portfolio Manager
FREMONT CALIFORNIA INTERMEDIATE TAX-FREE FUND - Growth of $10,000
* Assumes initial investment of $10,000 on inception date, November 16, 1990.
<TABLE>
<CAPTION>
Fremont California Lehman Bros.
Intermediate Tax-Free Fund 5 -Year State G.O. Index
-------------------------- ------------------------
Qtrly Qtrly
Return Balance Return Balance
------ ------- ------ -------
<S> <C> <C> <C> <C>
16-Nov-90 $10,000 $10,000
30-Nov-90 0.64% $10,064 0.67% $10,067
31-Dec-90 0.40% $10,105 0.35% $10,102
31-Jan-91 1.67% $10,273 1.46% $10,250
28-Feb-91 0.88% $10,364 0.88% $10,340
31-Mar-91 0.06% $10,370 -0.26% $10,313
30-Apr-91 0.93% $10,467 1.39% $10,456
31-May-91 0.60% $10,530 0.49% $10,508
30-Jun-91 -0.33% $10,496 -0.14% $10,493
31-Jul-91 1.02% $10,603 1.00% $10,598
31-Aug-91 1.26% $10,737 1.26% $10,731
30-Sep-91 1.34% $10,881 1.20% $10,860
31-Oct-91 0.50% $10,936 0.78% $10,945
30-Nov-91 0.16% $10,953 0.31% $10,979
31-Dec-91 2.14% $11,187 2.25% $11,226
31-Jan-92 0.27% $11,218 0.18% $11,246
29-Feb-92 0.04% $11,222 0.06% $11,253
31-Mar-92 -0.30% $11,188 -0.37% $11,211
30-Apr-92 0.73% $11,270 0.85% $11,306
31-May-92 0.91% $11,373 0.94% $11,413
30-Jun-92 1.43% $11,535 1.40% $11,572
31-Jul-92 2.91% $11,871 2.62% $11,876
31-Aug-92 -1.04% $11,747 -0.75% $11,787
30-Sep-92 0.71% $11,831 0.64% $11,862
31-Oct-92 -0.75% $11,741 -0.34% $11,821
30-Nov-92 1.40% $11,906 1.19% $11,962
31-Dec-92 0.82% $12,004 0.73% $12,049
31-Jan-93 1.26% $12,155 1.09% $12,180
28-Feb-93 2.99% $12,518 2.58% $12,495
31-Mar-93 -1.55% $12,325 -1.10% $12,357
30-Apr-93 0.89% $12,434 0.60% $12,432
31-May-93 0.21% $12,460 0.35% $12,475
30-Jun-93 1.66% $12,666 1.33% $12,641
31-Jul-93 -0.30% $12,629 0.01% $12,642
31-Aug-93 2.06% $12,889 1.38% $12,817
30-Sep-93 1.40% $13,069 0.76% $12,915
31-Oct-93 0.06% $13,076 0.12% $12,930
30-Nov-93 -0.86% $12,964 -0.24% $12,899
31-Dec-93 1.81% $13,198 1.39% $13,078
31-Jan-94 1.18% $13,354 0.95% $13,202
28-Feb-94 -2.60% $13,007 -1.97% $12,943
31-Mar-94 -2.63% $12,664 -2.24% $12,653
30-Apr-94 0.41% $12,717 1.00% $12,779
31-May-94 0.62% $12,795 0.58% $12,854
30-Jun-94 -0.63% $12,714 -0.26% $12,820
31-Jul-94 1.58% $12,915 1.04% $12,954
31-Aug-94 0.23% $12,945 0.48% $13,016
30-Sep-94 -1.39% $12,765 -0.74% $12,920
31-Oct-94 -1.60% $12,561 -0.56% $12,847
30-Nov-94 -1.65% $12,354 -0.76% $12,750
31-Dec-94 1.60% $12,552 0.91% $12,866
31-Jan-95 2.22% $12,830 1.05% $13,001
28-Feb-95 2.94% $13,208 1.49% $13,195
31-Mar-95 1.12% $13,356 0.97% $13,323
30-Apr-95 0.20% $13,382 0.25% $13,356
31-May-95 2.71% $13,745 2.17% $13,646
30-Jun-95 -0.68% $13,652 0.14% $13,665
31-Jul-95 0.87% $13,771 1.40% $13,856
31-Aug-95 1.08% $13,920 0.88% $13,979
30-Sep-95 0.42% $13,978 0.32% $14,023
31-Oct-95 1.34% $14,165 0.41% $14,081
</TABLE>
<TABLE>
<CAPTION>
Average Annual Returns for Periods Ended 10/31/95
<S> <C>
1 Year 12.77%
2 Years 4.08%
3 Years 6.46%
4 Years 6.68%
Since Inception (11/16/90) 7.28%
</TABLE>
Performance data illustrated is historical. Past performance is not predictive
of future performance. Share price and return will vary so that a gain or loss
may be realized when shares are sold. All performance figures assume
reinvestment of dividends. Management fees and other expenses are included in
the Fund's performance; however, fees and expenses are not incorporated in the
Lehman Bros. 5-Year State G.O. Index.
FREMONT MUTUAL FUNDS
17
<PAGE> 18
REPORT OF INDEPENDENT ACCOUNTANTS
TO THE SHAREHOLDERS AND BOARD OF DIRECTORS OF THE FREMONT MUTUAL FUNDS:
----------------------------------------------------------------------
We have audited the accompanying statements of assets and liabilities
of the various funds comprising the Fremont Mutual Funds (the Funds) including
each Fund's statement of investments in securities and net assets as of October
31, 1995, and the related statements of operations for the year then ended and
the statements of changes in net assets and the financial highlights for each
of the periods indicated thereon. These financial statements and financial
highlights are the responsibility of the Funds' 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 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 October 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
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 the various funds comprising the Fremont Mutual Funds as of October
31, 1995, the results of their operations for the year then ended, and the
changes in their net assets and their financial highlights for each of the
periods indicated thereon in conformity with generally accepted accounting
principles.
/s/ Coopers & Lybrand L.L.P
San Francisco, California
December 1, 1995
FREMONT MUTUAL FUNDS
18
<PAGE> 19
FREMONT GLOBAL FUND
October 31, 1995
STATEMENT OF INVESTMENTS
IN SECURITIES AND NET ASSETS
<TABLE>
<CAPTION>
Country Value
Shares Security Description Code (Note 1)
- -----------------------------------------------------------------------------
<S> <C> <C> <C>
STOCKS - 70.0%
BUSINESS EQUIPMENT & SERVICES - 2.7%
6,000 Legrand FR $ 1,004,955
500,000 Wharf Holdings HK 1,687,944
143,400 Kyowa Exeo Corp. JP 1,249,581
10,000 Securitas AB "B" Free SW 387,486
20,000 Reuters Holdings PLC, ADR UK 1,110,000
13,100 Automatic Data Processing, Inc. US 936,650
20,300 Dun & Bradstreet Corp. US 1,212,925
*12,900 Federal Express Corp. US 1,059,413
36,531 First Data Corp. US 2,415,658
*19,200 Office Depot, Inc. US 549,600
52,200 WMX Technologies, Inc. US 1,468,125
----------
13,082,337
----------
CAPITAL GOODS - 4.1%
8,044 Lafarge Coppee FR 533,818
1,100 Heidelberger Zement AG GM 476,512
3,000 Mannesmann AG GM 984,270
2,000 Siemens AG GM 1,043,923
1,021,000 PT Dynaplast (Foreign Registered) ID 899,163
8,400 Kyocera Corp., ADR JP 1,390,200
206,000 Mitsubishi Heavy Industries JP 1,591,364
60,000 Cemex SA (Class B), ADR MX 385,710
954,000 IJM Corp. Berhad MY 1,569,969
160,000 Steel & Tube Holdings Ltd. NZ 760,262
30,000 Cementos Lima, ADR PE 417,120
19 Zardoya-Otis SP 1,856
40,000 Autoliv AB SW 2,297,776
14,400 Caterpillar, Inc. US 808,200
24,300 Emerson Electric Co. US 1,731,375
79,900 General Electric Co. US 5,053,675
----------
19,945,193
----------
CONSUMER DURABLES - 1.3%
3,160 Daimler-Benz AG GM 1,504,655
28,600 Ek Chor China Motorcycle Co. Ltd. HK 400,400
31,000 Fukoku Co. Ltd. JP 549,371
33,000 Murata Manufacturing Co. Ltd. JP 1,159,935
33,000 Sony Corp., ADR JP 1,509,750
112,000 Suzuki Motor Co. Ltd. JP 1,129,485
----------
6,253,596
----------
CONSUMER NON-DURABLES - 9.5%
12,000 BIC FR 1,140,096
6,000 Groupe Danone FR 959,499
10,760 LVMH FR 2,143,716
440 LVMH, ADR FR 17,545
2,880,000 Pacific Andes International Holdings Ltd. HK 681,696
928,280 PT Mayora Indah (Foreign Registered) ID 664,225
20,000 Coca-Cola Femsa SA de CV ADR MX 360,000
35,000 PanAmerican Beverages, Inc. (Class A) MX 958,125
10,600 Unilever NV (New York Shares) NL 1,388,600
250,000 Cervecer Backus & Johnston PE 453,944
268,450 San Miguel Corp. (Class B) PH 887,609
90,000 Fraser & Neave Ltd. SG 1,063,318
600 Nestle SA (Registered Shares) SZ 628,521
CONSUMER NON-DURABLES (CONTINUED)
100,000 Srithai Superware Co. Ltd.
(Foreign Registered) TH $ 675,541
*137,619 President Enterprises, GDR TW 1,513,812
23,700 Anheuser Busch Cos., Inc. US 1,564,200
51,238 Archer Daniels Midland Co. US 826,213
20,800 Campbell Soup Co. US 1,089,400
73,700 Coca-Cola Co. US 5,297,188
14,700 Colgate Palmolive Co. US 1,017,975
11,700 CPC International US 776,588
*20,900 Crown Cork & Seal Co., Inc. US 728,888
28,700 Eastman Kodak Co. US 1,797,338
36,900 Gillette Co. US 1,785,037
21,200 Heinz (H.J.) & Co. US 985,800
18,700 Kellogg Co. US 1,351,075
70,600 Pepsico, Inc. US 3,724,150
63,100 Philip Morris Cos., Inc. US 5,331,950
51,800 Procter & Gamble Co. US 4,195,800
33,900 Sara Lee Corp. US 995,812
35,600 Tyson Foods, Inc. (Class A) US 849,950
----------
45,853,611
----------
CONSUMER SERVICES - 5.5%
22,000 News Corp. Ltd., ADR AU 437,250
185,400 Village Roadshow Ltd. (Preferred) AU 530,845
14,000 Societe Television Francaise 1 FR 1,447,643
220,000 PT Modern Photo Film Co.
(Foreign Registered) ID 1,336,856
3,300 H.I.S. Co. Ltd. JP 127,625
35,000 Secom Co. JP 2,282,273
20,000 Sega Enterprises Ltd. JP 1,061,340
10,000 Sega Enterprises Ltd., ADR JP 132,524
145,000 Genting Berhad MY 1,250,197
140,600 Elsevier NV NL 1,815,916
7,813 Wolters Kluwer NV NL 710,318
27,840 Wolters Kluwer NV, ADR NL 2,530,046
280,000 Helicopter Line Ltd. (The) NZ 813,058
110,000 Pearson PLC UK 1,095,278
20,400 Capital Cities/ABC, Inc. US 2,419,950
10,580 CBS, Inc. US 854,335
*30,300 CUC International, Inc. US 1,049,138
40,700 Disney (Walt) Co. US 2,345,338
23,600 Mattel, Inc. US 678,500
9,500 Tribune Co. US 599,688
*27,500 Viacom, Inc. (Class B) US 1,375,000
5,000 Washington Post Co. (Class B) US 1,450,000
----------
26,343,118
----------
ENERGY - 1.4%
50,000 YPF Sociedad, ADR AR 856,250
* 15 Petrofina SA (Warrants 06/03/97) BE 198
6,787 Societe Nationale Elf Aquintaine SA FR 462,769
17,300 Amoco Corp. US 1,105,037
12,100 Atlantic Richfield Co. US 1,291,675
16,100 Chevron Corp. US 752,675
15,600 Exxon Corp. US 1,191,450
11,400 Mobil Corp. US 1,148,550
----------
6,808,604
----------
<FN>
*Non-income producing securities
</FN>
</TABLE>
The accompanying notes are an integral part of these financial statements.
FREMONT MUTUAL FUNDS
19
<PAGE> 20
FREMONT GLOBAL FUND
October 31, 1995
<TABLE>
<CAPTION>
Country Value
Shares Security Description Code (Note 1)
- -----------------------------------------------------------------------------
<S> <C> <C> <C>
FINANCIAL SERVICES - 8.2%
60,000 Lend Lease Corp. Ltd. AU $ 834,299
200,000 Westpac Banking Corp. Ltd. AU 820,897
7,566 Cetelem FR 1,208,379
8,000 Societe Generale Paris FR 917,318
23,472 Union des Assurances de Paris FR 610,374
4,000 Union des Assurances Federales FR 425,898
228 Allianz AG Holdings GM 419,035
2,200 Commerzbank AG GM 508,227
20,000 Deutsche Bank AG GM 901,893
760,000 Amoy Properties Ltd. HK 732,348
380,000 Cheung Kong (Holdings) Ltd. HK 2,142,977
1,398,000 JCG Holdings Ltd. HK 1,021,652
*495,000 Tian An China Investments Ltd.
(Warrants 01/25/96) HK 832
968,500 PT Lippo Bank (Foreign Registered) ID 1,961,735
150,000 Arab Malaysian Finance Berhad
(Foreign Registered) MY 525,591
200,000 Commerce Asset Holding Berhad MY 992,126
32,467 Aegon NV, ADR NL 1,237,804
289,000 City Developments SG 1,788,999
91,250 Development Bank of Singapore
(Foreign Registered) SG 1,045,808
95,833 Oversea-Chinese Banking Corp. Ltd.
(Foreign Registered) SG 1,125,453
129,899 United Overseas Bank Ltd.
(Foreign Registered) SG 1,139,547
808 Union Bank of Switzerland SZ 874,859
220,900 Bangkok Bank Ltd. (Foreign Registered) TH 2,282,297
415,000 Bank of Ayudhya Ltd. (Foreign Registered) TH 2,391,218
600,000 Krung Thai Bank Co. Ltd.
(Foreign Registered) TH 2,372,343
500,000 Siam City Bank Ltd. (Foreign Registered) TH 531,492
160,000 Siam Commercial Bank
(Foreign Registered) TH 1,869,263
244,280 Thai Farmers Bank Co. Ltd.
(Foreign Registered) TH 2,019,084
155,801 HSBC Holdings PLC (Hong Kong Shares) UK 2,267,098
44,850 American International Group, Inc. US 3,784,219
6,100 General Re Corp. US 883,737
----------
39,636,802
----------
HEALTH CARE - 8.0%
3,000 Gehe AG GM 1,472,144
* 749 Gehe AG, New GM 355,843
*26,000 Merck KGaA GM 1,085,680
400,250 PT Dankos Laboratories
(Foreign Registered) ID 1,127,961
20,000 Towa Pharmaceutical Co. Ltd. JP 939,932
28,000 Kimberly-Clark de Mexico SA MX 368,181
8,000 Astra AB "A" Free SW 294,308
74,000 Astra AB "B" Free SW 2,677,723
360 Roche Holding AG SZ 2,614,437
61,000 Abbott Laboratories US 2,424,750
23,600 American Home Products Corp. US 2,091,550
38,400 Bristol-Myers Squibb Co. US 2,928,000
13,300 Cardinal Health, Inc. US 683,288
38,000 Columbia HCA Healthcare Corp. US 1,866,750
*17,000 Forest Laboratories, Inc. (Class A) US 703,375
50,100 Johnson & Johnson US 4,083,150
22,100 Lilly (Eli) & Co. US 2,135,413
21,800 Medtronic, Inc. US 1,258,950
HEALTH CARE (CONTINUED)
89,800 Merck & Co. US $ 5,163,500
46,200 Pfizer, Inc. US 2,650,725
29,200 Schering Plough Corp. US 1,565,850
----------
38,491,510
----------
MISCELLANEOUS - 1.8%
*147,000 India Fund (Class A)
(United Kingdom Shares) IN 693,449
*100,900 BZW Taiwan Index Fund Ltd. TW 949,873
74,600 Inefficient Market Fund, Inc. US 783,300
299,528 Morgan Grenfell Small Cap Fund, Inc. US 3,482,013
122,000 Royce OTC Micro-Cap Trust, Inc. US 945,500
158,857 Royce Value Trust US 2,045,284
----------
8,899,419
----------
MULTI-INDUSTRY - 2.7%
35,000 Rhodia-Ster SA, GDR BR 458,500
24,000 Douglas Holding AG GM 864,112
4,800 Viag AG GM 1,942,975
410,000 Hutchison Whampoa HK 2,259,128
3,896,000 Yue Yuen Industrial Holdings HK 1,020,449
540,000 Renong Berhad MY 824,882
1,326,000 JG Summit Holdings - B PH 372,157
963,000 Comfort Group Ltd. SG 803,919
110,000 Cycle & Carriage Ltd. SG 980,545
10,900 ITT Corp. US 1,335,250
41,000 Minnesota Mining & Manufacturing Co. US 2,331,875
----------
13,193,792
----------
RAW MATERIALS - 2.3%
18,900 Broken Hill Proprietary Co. Ltd., ADR AU 1,022,963
*20,000 Companhia Siderurgica Tubarao, ADR BR 461,640
4,500 Compagnie de Saint-Gobain SA FR 537,184
2,000 Bayer AG GM 528,353
776,000 Asiatic Development Berhad MY 763,780
*32,109 Hansol Paper Ltd., GDR SK 658,235
* 4,333 Hansol Paper Ltd., GDR SK 88,826
670 Sandoz AG (Registered Shares) SZ 552,632
14,200 Du Pont (E.I.) de Nemours & Co. US 885,725
61,500 Engelhard Corp. US 1,529,812
15,100 FMC Corp. US 1,081,537
11,800 Great Lakes Chemical Corp. US 792,075
7,100 Monsanto Co. US 743,725
18,900 Morton International, Inc. US 576,450
14,500 Nucor Corp. US 697,813
----------
10,920,750
----------
RETAIL - 4.5%
*55,000 Makro Atacadista BR 508,915
2,100 Carrefour Supermarche FR 1,234,940
12,230 Castorama Dubois FR 1,985,829
1,500 AVA AG GM 562,440
300,000 PT Hero Supermarket (Foreign Registered) ID 614,267
29,000 Ito-Yokado Co. Ltd. JP 1,587,213
41,000 Seven Eleven Japan JP 2,737,749
200,000 Cifra SA de CV MX 209,483
335,000 Cifra SA de CV, ADR MX 358,450
45,642 Ceteco Holdings NV NL 1,488,169
43,200 Home Depot, Inc. US 1,609,200
58,400 McDonalds Corp. US 2,394,400
<FN>
*Non-income producing securities
</FN>
</TABLE>
The accompanying notes are an integral part of these financial statements.
FREMONT MUTUAL FUNDS
20
<PAGE> 21
FREMONT GLOBAL FUND
October 31, 1995
<TABLE>
<CAPTION>
Country Value
Shares Security Description Code (Note 1)
- -----------------------------------------------------------------------------
<S> <C> <C> <C>
RETAIL (CONTINUED)
*23,300 Safeway, Inc. US $ 1,100,925
*32,700 Stop & Shop Cos., Inc. US 678,525
*23,400 Toys R Us, Inc. US 511,875
181,000 Wal Mart Stores, Inc. US 3,914,125
-----------
21,496,505
-----------
SHELTER - 2.1%
270,000 Sun Hung Kai Properties Ltd. HK 2,156,494
522,000 PT Jaya Real Property (Foreign Registered) ID 1,488,309
45,000 Empresas ICA Sociedad Controladora
SA de CV, ADR MX 427,500
750,000 Ayala Land, Inc. PH 865,052
*3,200,000 C & P Homes, Inc. PH 2,060,746
*1,875,000 Filinvest Land, Inc. PH 504,614
17,600 International Paper Co. US 651,200
16,300 Kimberly-Clark Corp. US 1,183,787
14,200 Scott Paper Co. US 756,150
-----------
10,093,852
-----------
TECHNOLOGY - 9.2%
6,500 SAP AG (Preferred) GM 997,053
*1,020,000 Telecom Italia Mobile SPA IT 1,714,151
110,000 Canon, Inc. JP 1,884,760
18,900 Hirose Electronics JP 1,208,371
40,000 Hoya Corp. JP 1,174,916
255 Nippon Telegraph & Telephone JP 2,094,728
14,000 TDK Corp. JP 722,377
250,000 Fisher & Paykel Industries Ltd. NZ 816,688
250,000 CPT Telefonica del Peru SA PE 446,232
545,486 Tele 2000 PE 536,110
26,000 Samsung Electronics Ltd., GDS (1/2 Non-Voting) SK 1,696,500
* 2,392 Samsung Electronics Ltd., GDS (1/2 Voting) SK 274,195
5,145 Samsung Electronics Ltd., New GDS
(1/2 Non-Voting) SK 268,569
* 821 Samsung Electronics Ltd., New GDS (1/2 Voting) SK 94,111
47,250 Advanced Information Services
(Foreign Registered) TH 751,043
*73,800 AirTouch Communications, Inc. US 2,103,300
23,400 Amp, Inc. US 918,450
*15,800 Applied Materials, Inc. US 791,975
*20,900 Cisco Systems, Inc. US 1,619,750
*21,700 Compaq Computer Corp. US 1,209,775
18,500 Computer Associates International, Inc. US 1,017,500
40,500 Hewlett-Packard Co. US 3,751,313
62,800 Intel Corp. US 4,388,150
11,500 International Business Machines US 1,118,375
*25,400 Litton Industries, Inc. US 1,006,475
15,700 Micron Technology, Inc. US 1,108,812
*44,100 Microsoft Corp. US 4,410,000
46,400 Motorola, Inc. US 3,045,000
*34,200 Oracle Systems Corp. US 1,491,975
15,000 Texas Instruments, Inc. US 1,023,750
8,100 United Technologies Corp. US 718,875
-----------
44,403,279
-----------
TRANSPORTATION - 0.5%
32,000 Grupo Casa Autrey SP, ADR MX 408,000
125,000 Keppel Corp. SG 1,025,822
8,500 Keppel Corp. (Convertible Loan Stock) SG 13,109
* 8,500 Keppel Corp. (Warrants 06/30/97) SG 34,277
TRANSPORTATION (CONTINUED)
11,200 CSX Corp. US $ 938,000
-----------
2,419,208
-----------
UTILITIES - 6.2%
10,000 Telecom de Argentina, ADR AR 383,750
8,900 Telefonica de Argentina SA, ADR AR 184,675
7,000 Compania Telecomunicacion Chile, ADR CL 504,000
50,000 Enersis SA, ADR CL 1,256,250
4,000 RWE AG GM 1,428,825
420,480 Hong Kong & China Gas Co. HK 682,553
*19,200 Hong Kong & China Gas Co.
(Warrants 12/31/95) HK 969
400,000 Hong Kong Telecommunications HK 698,460
37,500 Hong Kong Telecommunications , ADR HK 651,562
28,400 PT Indonesia Satellite, ADR ID 940,750
40,000 Telefonos de Mexico SA (Class L), ADR MX 1,100,000
27,100 Telecom of New Zealand, ADR NZ 1,798,763
235,365 Manila Electric Co. (Class B) PH 1,755,510
14,900 Philippine Long Distance Telephone Co. PH 830,642
70,000 Korea Electric Power Corp., ADR SK 1,732,500
30,300 Empresa Nacional de Electricidad, ADR SP 1,522,575
15,457 British Telecommunications PLC, ADR UK 919,692
100,138 Northern Electric PLC UK 1,407,644
*113,200 Northern Electric PLC (Preferred) UK 177,404
91,807 Powergen PLC UK 825,477
34,000 Powergen PLC, ADR UK 1,262,250
26,000 Ameritech Corp. US 1,404,000
85,300 AT&T Corp. US 5,459,200
17,300 Bell Atlantic Corp. US 1,100,713
14,600 Bellsouth Corp. US 1,116,900
30,000 Frontier Corp. US 810,000
-----------
29,955,064
-----------
TOTAL STOCKS (Cost $297,936,613) 337,796,640
-----------
</TABLE>
<TABLE>
<CAPTION>
Value
Face Amount/Issuer/Coupon Rate/Stated Maturity (Note 1)
- -------------------------------------------------------------------------------
<S> <C> <C>
BONDS - 24.5%
CORPORATE BONDS - 5.5%
2,000,000 BankAmerica Corp., 8.125%, 08/15/04
(Callable 08/15/99 @ 100) 2,107,178
1,600,000 Chrysler Corp., 10.400%, 08/01/99
(Callable 08/01/97 @ 100) 1,706,784
2,000,000 Costco Wholesale, Inc., 5.750%, 05/15/02
(Convertible Bond) 1,870,000
2,500,000 General Electric Capital Corp., 8.850%, 03/01/07
(Puttable 03/01/97 @ 100) 2,963,400
3,000,000 General Motors Acceptance Corp.,
7.500%, 07/24/00 3,130,680
2,000,000 Great Western Bank, 9.875%, 06/15/01 2,288,300
2,000,000 Inter-American Development Bank,
7.000%, 06/15/25 2,022,060
2,000,000 Pohang Iron & Steel Co., Ltd., 7.375%,
05/15/05 2,070,680
2,000,000 Potomac Electric Power, 5.000%,
09/01/02 (Convertible Bond) 1,820,000
3,000,000 Societe Generale NY, 9.875%, 07/15/03 3,572,820
2,500,000 W.R. Grace, 7.400%, 02/01/00 2,563,975
249,883 Zions Auto Trust, 5.650%, 06/15/99 248,203
-----------
26,364,080
-----------
<FN>
*Non-income producing securities
</FN>
</TABLE>
The accompanying notes are an integral part of these financial statements.
FREMONT MUTUAL FUNDS
21
<PAGE> 22
FREMONT GLOBAL FUND
October 31, 1995
<TABLE>
<CAPTION>
Value
Face Amount/Issuer/Coupon Rate/Stated Maturity (Note 1)
- -------------------------------------------------------------------------------
<S> <C> <C>
MORTGAGE BACKED SECURITIES - 0.4%
2,020,139 FNMA CMO, 1992-137BA REMIC,
3.500%, 01/25/17 $ 1,906,506
------------------
1,906,506
------------------
U.S. GOVERNMENT & AGENCY BONDS - 4.0%
Federal Home Loan Mortgage Corp.
3,500,000 6.390%, 07/02/03 (Callable 07/02/96 @ 100) 3,438,190
3,000,000 8.375%, 03/15/10 (Callable 03/15/00 @ 100) 3,207,660
Federal National Mortgage Association
2,000,000 7.700%, 08/10/04 (Callable 08/10/99 @ 100) 2,090,320
3,000,000 8.400%, 10/25/04 (Callable 10/25/99 @ 100) 3,231,570
U.S. Treasury Notes
3,000,000 7.125%, 02/29/00 3,148,110
4,000,000 7.500%, 02/15/05 4,411,240
------------------
19,527,090
------------------
FOREIGN BONDS - 14.6%
European Investment Bank
CAN$ 2,000,000 6.625%, 09/15/00 1,436,824
4,000,000 7.750%, 04/22/03 2,937,011
Oesterreichische Kontrollbank
CAN$ 2,000,000 9.000%, 06/19/02 1,564,480
Japan Highway Public Corp.
CAN$ 2,000,000 7.875%, 09/27/02 1,482,482
Toyko Electric Power
CAN$ 2,000,000 10.500%, 06/14/01 1,651,137
Republic of Finland
CAN$ 2,000,000 9.500, 09/15/04 1,596,161
Kingdom of Denmark
DKK 13,000,000 9.000%, 11/15/00 2,578,579
20,000,000 8.000%, 11/15/01 3,797,144
20,000,000 7.000%, 12/15/04 3,476,382
20,000,000 8.000%, 03/15/06 3,683,632
Government of France
FF 10,000,000 8.500%, 11/25/02 2,216,512
15,000,000 8.500%, 04/25/03 3,318,011
10,500,000 6.750%, 10/25/03 2,102,451
10,000,000 7.750%, 10/25/05 2,112,085
Federal Republic of Germany
DM 3,000,000 8.500%, 08/21/00 2,387,388
3,000,000 8.250%, 09/20/01 2,373,966
3,000,000 7.250%, 10/21/02 2,263,182
3,000,000 6.750%, 04/22/03 2,189,042
4,500,000 6.875%, 05/12/05 3,281,327
Treuhandanstalt
DM 3,000,000 7.750%, 10/01/02 2,314,739
4,000,000 6.500%, 04/23/03 2,872,989
World Bank
DM 3,000,000 6.125%, 09/27/02 2,125,129
Government of Netherlands
NLG 6,000,000 6.500%, 04/15/03 3,867,047
5,000,000 6.750%, 11/15/05 3,216,208
European Investment Bank
L. 2,000,000 8.000%, 06/10/03 3,132,361
FOREIGN BONDS (CONTINUED)
Republic of Argentina
US$ 4,000,000 5.000%, 03/31/23 (Callable Semiannually
in May or November @ 100) $ 1,892,500
Republic of South Africa
US$ 2,000,000 9.625%, 12/15/99 2,122,500
United Mexican States
US$ 4,000,000 6.250%, 12/31/19
(Callable at any time @ 100) 2,340,000
------------------
70,331,269
------------------
TOTAL BONDS (Cost $111,513,470) 118,128,945
------------------
</TABLE>
<TABLE>
<CAPTION>
Value
Face Amount/Issuer/Coupon Rate/Stated Maturity (Note 1)
- ----------------------------------------------------------------------------------
<S> <C>
SHORT TERM SECURITIES - 5.5%
24,463,225 Bankers Trust Commingled Trust Fund 24,463,225
+ 2,000,000 U.S. Treasury Bill, 5.270%, 12/14/95 1,987,411
------------------
TOTAL SHORT TERM SECURITIES (Cost $26,450,636) 26,450,636
------------------
TOTAL INVESTMENTS (Cost $435,900,719), 100.0% 482,376,221
OTHER ASSETS AND LIABILITIES, NET, (0.0)% (21,365)
------------------
NET ASSETS, 100.0% $ 482,354,856
==================
<FN>
PORTFOLIO ABBREVIATIONS:
ADR - American Depository Receipt
CMO - Collateralized Mortgage Obligation
FNMA - Federal National Mortgage Association
GDR - Global Depository Receipt
GDS - Global Depository Share
REMIC - Real Estate Mortgage Investment Conduit
CURRENCY ABBREVIATIONS:
CAN$ - Canadian Dollar
DKK - Danish Kroner
DM - German Deutschemark
FF - French Franc
NLG - Netherlands Guilder
L. - British Pound
US$ - US Dollar
+ On deposit with broker for initial margin on futures contract (Note 1).
</FN>
</TABLE>
The accompanying notes are an integral part of these financial statements.
FREMONT MUTUAL FUNDS
22
<PAGE> 23
FREMONT GLOBAL FUND
October 31, 1995
COUNTRY DIVERSIFICATION
<TABLE>
<CAPTION>
Country % Of
Code Country Name Net Assets
- --------------------------------------------------------
<S> <C> <C>
AR Argentina 0.3%
AU Australia 0.8%
BE Belgium 0.0%
BR Brazil 0.3%
CL Chile 0.4%
CN Canada 2.2%
DK Denmark 2.8%
FR France 5.1%
GM Germany 7.2%
HK Hong Kong 2.9%
ID Indonesia 1.9%
IN India 0.1%
IT Italy 0.4%
JP Japan 5.1%
MX Mexico 0.9%
MY Malaysia 1.2%
NL Netherlands 3.4%
NZ New Zealand 0.9%
PE Peru 0.4%
PH Philippines 1.5%
SG Singapore 1.9%
SK South Korea 1.0%
SP Spain 0.3%
SW Sweden 1.2%
SZ Switzerland 1.0%
TH Thailand 2.7%
TW Taiwan 0.5%
UK United Kingdom 2.5%
US United States 51.1%
------
TOTAL 100.0%
======
</TABLE>
The accompanying notes are an integral part of these financial statements.
FREMONT MUTUAL FUNDS
23
<PAGE> 24
FREMONT INTERNATIONAL GROWTH FUND
October 31, 1995
STATEMENT OF INVESTMENTS
IN SECURITIES AND NET ASSETS
<TABLE>
<CAPTION>
Country Value
Shares Security Description Code (Note 1)
- -----------------------------------------------------------------------------
<S> <C> <C> <C>
STOCKS - 93.8%
BUSINESS EQUIPMENT & SERVICES - 2.5%
41,000 Kyowa Exeo Corp. JP $ 357,272
8,000 Reuters Holdings PLC, ADR UK 444,000
---------
801,272
---------
CAPITAL GOODS - 10.8%
9,000 Kyocera Corp. JP 738,435
6,000 Mabuchi Motors Co. JP 363,636
16,000 Raito Kogyo Co. JP 328,976
148,000 IJM Corp. Berhad MY 243,559
158,333 Leader Universal Holdings Berhad MY 427,001
17,000 IHC Caland NL 483,254
15,300 Autoliv AB SW 878,899
---------
3,463,760
---------
CONSUMER DURABLES - 3.3%
15,000 Matsushita-Kotobuki Electronics JP 304,009
10,000 Murata Manufacturing Co. Ltd. JP 351,495
17,600 Rinnai Corp. JP 389,445
---------
1,044,949
---------
CONSUMER NON-DURABLES - 3.4%
83,550 PT Indofood Sukses Makmur
(Foreign Registered) ID 386,294
11,600 PanAmerican Beverages, Inc.
(Class A) MX 317,550
*34,245 President Enterprises, GDR TW 376,691
---------
1,080,535
---------
CONSUMER SERVICES - 10.8%
50,226 News Corp. Ltd. AU 253,196
25,225 News Corp. Ltd. (Preferred) AU 115,253
41,800 Village Roadshow Ltd. (Preferred) AU 119,683
286,000 Shaw Brothers Ltd. HK 360,677
55,000 PT Modern Photo Film Co.
(Foreign Registered) ID 334,214
8,000 Secom Co. JP 521,663
66,000 Genting Berhad MY 569,055
7,574 Wolters Kluwer NV NL 688,589
105,000 Rentokil Group PLC UK 523,577
---------
3,485,907
---------
FINANCIAL SERVICES - 8.7%
90,000 Cheung Kong (Holdings) Ltd. HK 507,547
21,855 Aegon NV, ADR NL 833,222
46,000 Development Bank of Singapore
(Foreign Registered) SG 527,202
42,600 Bangkok Bank Ltd.
(Foreign Registered) TH 440,135
86,000 Bank of Ayudhya Ltd.
(Foreign Registered) TH 495,530
---------
2,803,636
---------
HEALTH CARE - 11.4%
1,050 Gehe AG GM $ 515,251
* 262 Gehe AG, New GM 124,474
200,000 PT Dankos Laboratories
(Foreign Registered) ID 563,628
40,000 Banyu Pharmaceutical Co. JP 422,970
32,000 Santen Pharmaceutical Co. JP 758,212
20,800 Astra AB "B" Free SW 752,657
73 Roche Holding AG SZ 530,150
---------
3,667,342
---------
MISCELLANEOUS - 0.4%
*80,187 India Fund (Class B)
(United Kingdom Shares) IN 133,283
---------
133,283
---------
MULTI-INDUSTRY - 4.8%
98,000 Hutchison Whampoa HK 539,987
1,700,000 Yue Yuen Industrial Holdings HK 445,268
260,000 Renong Berhad MY 397,165
494,000 International UNP Holdings
(Canadian Shares) PO 176,757
---------
1,559,177
---------
RAW MATERIALS - 1.5%
*20,400 Concordia Paper Holdings, Ltd.,
ADR HK 183,600
*15,355 Hansol Paper Ltd., GDR SK 314,778
---------
498,378
---------
RETAIL - 9.1%
* 7,600 Santa Isabel SA, ADR CL 171,950
880 Carrefour Supermarche FR 517,499
460 Hornbach Holding AG (Preferred) GM 462,238
3,600 Autobacs Seven JP 340,138
2,200 Ito Yokado Co. Ltd., ADR JP 475,475
6,000 Seven Eleven Japan JP 400,646
16,989 Ceteco Holdings, ADS NL 554,521
---------
2,922,467
---------
SHELTER - 1.4%
*700,000 C & P Homes, Inc. PH 450,788
---------
450,788
---------
TECHNOLOGY - 14.1%
11,600 Nokia AB "A" Series FI 663,942
5,500 SAP AG (Preferred) GM 843,660
*220,000 Telecom Italia Mobile SPA IT 244,636
8,100 Canon, Inc., ADR JP 690,525
51 Nippon Telegraph & Telephone JP 418,946
165,000 CPT Telefonica del Peru SA PE 294,513
*140,303 Tele 2000 PE 137,892
* 4,348 Samsung Electronics Ltd., GDS
(1/2 Non-Voting) SK 283,707
<FN>
*Non-income producing securities
</FN>
</TABLE>
The accompanying notes are an integral part of these financial statements.
FREMONT MUTUAL FUNDS
24
<PAGE> 25
FREMONT INTERNATIONAL GROWTH FUND
October 31, 1995
<TABLE>
<CAPTION>
Country Value
Shares Security Description Code (Note 1)
- -----------------------------------------------------------------------------
<S> <C> <C> <C>
TECHNOLOGY (CONTINUED)
* 65 Samsung Electronics Ltd., New GDS
(1/2 Voting) SK $ 7,451
21,560 Ericsson (L.M.) Telephone Co.,
ADR SW 460,509
30,900 Advanced Information Services
(Foreign Registered) TH 491,158
-------------
4,536,939
-------------
UTILITIES - 11.6%
8,541 Companhia Energetica de
Minas Gerais, ADR BR 180,428
13,000 VEBA AG GM 533,516
22,000 Hong Kong Telecommunications,
ADR HK 382,250
9,200 Telecom of New Zealand, ADR NZ 610,650
69,750 Manila Electric Co. (Class B) PH 520,242
7,100 Philippine Long Distance
Telephone Co. PH 395,809
9,000 Empresa Nacional de Electricidad,
ADR SP 452,250
71,405 Powergen PLC UK 642,034
-------------
3,717,179
-------------
TOTAL STOCKS (Cost $28,032,103) 30,165,612
-------------
</TABLE>
<TABLE>
<CAPTION>
Country Value
Face Amount/Issuer/Coupon Rate/Stated Maturity Code (Note 1)
- ---------------------------------------------------------------------
<S> <C> <C>
CONVERTIBLE BONDS - 1.1%
250,000 United Micro Electronics,
1.250%, 06/08/04 TW 337,500
-------------
TOTAL CONVERTIBLE BONDS (Cost $411,473) 337,500
-------------
</TABLE>
<TABLE>
<CAPTION>
Country Value
Face Amount/Issuer Code (Note 1)
- ---------------------------------------------------------------------
<S> <C> <C>
SHORT TERM INVESTMENTS - 5.1%
1,652,360 Bankers Trust Commingled
Trust Fund US 1,652,360
-------------
TOTAL SHORT TERM INVESTMENTS (Cost $1,652,360) 1,652,360
=============
TOTAL INVESTMENTS (Cost $30,095,936), 100.0% 32,155,472
OTHER ASSETS AND LIABILITIES, NET, 0.0% 541
-------------
NET ASSETS, 100.0% $ 32,156,013
=============
<FN>
PORTFOLIO ABBREVIATIONS:
ADR - American Depository Receipt
ADS - American Depository Shares
GDR - Global Depository Receipt
GDS - Global Depository Shares
</FN>
</TABLE>
<TABLE>
<CAPTION>
COUNTRY DIVERSIFICATION
Country % Of
Code Country Name Net Assets
- ------------------------------------------------------
<S> <C> <C>
AU Australia 1.5%
BR Brazil 0.6%
CL Chile 0.5%
FI Finland 2.1%
FR France 1.6%
GM Germany 7.7%
HK Hong Kong 7.5%
IN India 0.4%
ID Indonesia 4.0%
IT Italy 0.8%
JP Japan 21.4%
MY Malaysia 5.1%
MX Mexico 1.0%
NL Netherlands 8.0%
NZ New Zealand 1.9%
PE Peru 1.3%
PH Philippines 4.3%
PO Poland 0.5%
SG Singapore 1.6%
SK South Korea 1.9%
SP Spain 1.4%
SW Sweden 6.5%
SZ Switzerland 1.6%
TW Taiwan 2.3%
TH Thailand 4.4%
UK United Kingdom 5.0%
US United States 5.1%
------
TOTAL 100.0%
======
<FN>
*Non-income producing securities
</FN>
</TABLE>
The accompanying notes are an integral part of these financial statements.
FREMONT MUTUAL FUNDS
25
<PAGE> 26
FREMONT INTERNATIONAL SMALL CAP FUND
October 31, 1995
STATEMENT OF INVESTMENTS
IN SECURITIES AND NET ASSETS
<TABLE>
<CAPTION>
Country Value
Shares Security Description Code (Note 1)
- -----------------------------------------------------------------------------
<S> <C> <C> <C>
STOCKS - 98.0%
BUSINESS EQUIPMENT & SERVICES - 1.6%
2,000 Aida Engineering JP $ 14,060
1,000 Dai-Dan Co. Ltd. JP 11,358
100 Polynorm NV NL 10,516
6,700 Cowie Group PLC UK 31,500
--------
67,434
--------
CAPITAL GOODS - 8.2%
7,600,000 CIA Acos Especiais Itabira BR 56,118
356 Skoda Koncern Plzen AS CZ 7,488
400 Labinal SA FR 43,655
* 1,800 Bremer Vulkan Verbund AG GM 55,221
10,000 Bunka Shutter Co. JP 70,299
3,000 Marufuji Sheet Piling JP 18,799
3,000 Seirei Industry JP 12,542
6,700 Steel & Tube Holdings Ltd. NZ 31,836
2,700 Celsius Industrier AB "B" SW 51,089
--------
347,047
--------
CONSUMER DURABLES - 1.9%
* 8,799 CIA Interamericana de
Automotive AR 32,995
3,000 Tachi-S JP 22,617
58,658 Arcelik AS TU 9,714
6,100 Adwest Group UK 13,712
--------
79,038
--------
CONSUMER NON-DURABLES - 11.0%
21,400 Pacific Magazines &
Printing Ltd. AU 45,955
*9,800,000 Perdigao SA BR 17,836
100,000 Sao Paulo Alpargatas SA BR 13,676
* 107 Cokoladovny AS CZ 9,452
100 Holsten-Brauerei AG GM 22,015
1,100 Hellenic Sugar Industry SA GR 13,845
7,000 Lai Sun Garment
International Ltd. HK 7,379
8,000 PT Chareon Pokphand Indonesia
(Foreign Registered) ID 16,997
17,000 PT Japfa Comfeed Indonesia
(Foreign Registered) ID 8,421
4,000 Daito Gyorui JP 12,297
9,000 Kanematsu Corp. JP 30,753
11,000 Prima Meat Packers JP 37,695
15,000 Rhythm Watch Co. JP 48,465
53,000 Grupo Industrial Maseca SA de CV
Series B MX 34,958
2,000 Dutch Baby Milk Industries
Berhad MY 11,024
8,000 Nanyang Press Berhad MY 16,378
14,000 Lion Nathan Ltd. NZ 31,783
11,000 GP Batteries International Ltd. SG 26,840
10,000 Times Publishing Ltd. SG 23,205
900 American Standard Sanitaryware Ltd.
(Foreign Registered) TH 15,379
2,600 Karat Sanitaryware Co. Ltd.
(Foreign Registered) TH 10,228
8,000 Tat Konserve Sanayii AS TU 5,378
3,600 Alexandra Workwear UK 9,517
--------
469,476
--------
CONSUMER SERVICES - 2.8%
450 Gaumont FR $ 27,182
1,100 Delta Dairy SA GR 20,127
* 8,600 Vard AS NO 11,323
400 Unicer-Uniao Cervejeira
(Registered Shares) PT 6,491
2,200 Sun International
Bophuthatswana Ltd. SA 14,175
6,000 Hotel Properties SG 9,084
6,200 Airtours PLC UK 32,290
--------
120,672
--------
ENERGY - 5.4%
4,700 CIA Naviera Perez Co. (Class B) AR 20,585
11,400 Caltex Australia Ltd. AU 36,808
30,000 Uniao de Industrias
Petroquimicas SA BR 33,384
1,400 TransCanada Pipelines Ltd. CN 18,654
100 Elf Gabon FR 14,743
2,000 Itochu Fuel Corp. JP 16,684
2,000 Kamei Corp. JP 22,323
* 5,300 Engen Ltd. SA 33,059
74,000 Petrol Ofisi AS TU 17,302
59,000 Turcas Petroculuk AS TU 15,231
--------
228,773
--------
FINANCIAL SERVICES (BANKS) - 12.3%
7,400 Advance Bank of Australia Ltd. AU 54,660
6,600 Bank of Melbourne Ltd. AU 33,472
900 Parisienne de Reescompt FR 69,290
1,100 Credit Bank of Athens
(Registered Shares) GR 66,142
1,300 National Bank of Greece
(Registered Shares) GR 64,888
2,000 Chuo Trust & Banking Co. Ltd. JP 17,526
21,000 Affin Holdings Berhad MY 39,685
12,000 MBF Capital Berhad MY 11,339
300 KAS Associatie NV NL 10,161
*20,580 Union Bank of the Philippines PH 23,341
2,100 Banco Totta & Acores
(Registered Shares) PT 36,412
30 Verwalt & Privat-Bank AG SZ 42,254
27,600 First Bangkok City Bank Ltd.
(Foreign Registered) TH 24,129
418,000 Yapi Ve Kredi Bankasi SA TU 28,912
--------
522,211
--------
FINANCIAL SERVICES (OTHER) - 12.4%
* 600 Terca Brick Industries BE 29,002
350 Societe Financiere Interbail SA FR 22,288
500 Sovac FR 62,247
212,400 Century City International
Holdings Ltd. HK 46,154
42,000 Peregrine Investment
Holdings Ltd. HK 53,510
27,500 Tai Cheung Holdings HK 23,120
1,600 La Previdente IT 11,027
3,000 Life Co. Ltd. JP 9,370
10,000 Nippon Shinpan Co. JP 62,564
19,000 Rashid Hussein Berhad MY 47,126
2,100 Assurantieconcern Stad
Rotterdam NL 57,835
7,600 BNZ Finance Co. Ltd. NZ 8,426
110 Swiss Life Insurance & Pension SZ 42,315
2,800 Phatra Thanakit Co. Ltd.
(Foreign Registered) TH 20,250
8,400 Guardian Royal Exchange PLC UK 30,451
--------
525,685
--------
<FN>
*Non-income producing securities
</FN>
</TABLE>
The accompanying notes are an integral part of these financial statements.
FREMONT MUTUAL FUNDS
26
<PAGE> 27
FREMONT INTERNATIONAL SMALL CAP FUND
October 31, 1995
<TABLE>
<CAPTION>
Country Value
Shares Security Description Code (Note 1)
- -----------------------------------------------------------------------------
<S> <C> <C> <C>
HEALTH CARE - 0.7%
90 Galenica Holdings AG
(Registered Shares) SZ $ 28,125
---------
28,125
---------
MULTI-INDUSTRY - 6.8%
* 1,700 Acklands Ltd. CN 15,524
300 Compagnie Generale d'Industrie FR 56,821
800 Marine-Wendel FR 64,704
2,500 Industrie Zignago S.
Margherita SPA IT 11,779
4,000 Yamato International, Inc. JP 15,470
19,000 Bandar Raya Developments Berhad MY 28,425
32,000 Berjaya Group Berhad MY 20,283
600 Internatio-Muller NV NL 42,925
8,900 Goode Durrant PLC UK 34,095
---------
290,026
---------
RAW MATERIALS - 15.8%
* 5,600 Aluar Aluminio Argentina SA
(Class B) AR 37,518
18,000 Alcan Australia Ltd. AU 41,121
100 Tessenderlo Chemie BE 34,492
1,400,000 CIA Petroquimica Sul-Copesul BR 59,113
9,300,000 Fertilizantes Fosfatdos
(Preferred) BR 28,048
2,400 Donohue, Inc. (Class A) CN 33,545
* 116 Sepap AS CZ 8,317
* 221 Synthesia AS CZ 6,592
400 Nord Est FR 9,050
150 Saint Louis FR 43,184
100 Sommer Allibert FR 26,475
400 Hellas Can SA GR 8,362
9,000 Chugoku Marine Paints JP 38,772
9,000 Nippon Metal Industry JP 33,133
9,000 Apasco SA de CV MX 33,631
* 6,000 Empaques Ponderosa SA Series B MX 12,739
400 DSM NV NL 29,934
1,800 European Vinyls Corp.
International NV NL 56,410
8,900 Hartebeesfontein Gold
Mining Co. Ltd. SA 22,328
3,000 Randfontein Estates Gold Mining Co.
Witwatersrand Ltd. SA 16,656
500 Western Deep Levels Ltd. SA 13,983
3,600 SSAB Svenskt Stal AB "B" SW 36,095
4,500 National Petrochemical Co. TH 10,640
15,000 Cimentas TU 9,060
2,300 Smith (David S.) Holdings PLC UK 21,044
---------
670,242
---------
RETAIL - 2.6%
2,000 Oak & Co. JP 11,534
20,400 Acma Ltd. SG 66,388
12,700 East Asiatic Co. Ltd. TH 16,654
9,100 Saha Pathana Inter-Holding Ltd.
(Foreign Registered) TH 16,815
---------
111,391
---------
SHELTER - 9.0%
700 Bau Holding AG AS 32,468
10,400 Leighton Holdings Ltd. AU 23,996
10,900 Pioneer International Ltd. AU 26,727
* 5,000 Brasilit SA BR 9,308
* 56 Inzenyrske a Prumslove
Stavby AS CZ 4,711
325 GTM Entrepose SA FR 21,095
450 Societe Generale
d'Enterprises SA FR 9,214
SHELTER (CONTINUED)
67,000 Kumagai Gumi HK $ 50,697
5,000 Daikyo, Inc. JP 33,436
5,000 Daito Trust Construction JP 44,059
9,000 Tokyu Construction Co. JP 40,094
4,800 Vitro SA MX 10,531
7,000 Land & General Berhad MY 16,260
4,400 Boskalis Westminster NL 52,928
12,200 Crest Nicholson PLC UK 8,884
---------
384,408
---------
TECHNOLOGY - 1.1%
* 322 SPT Telecom AS CZ 31,831
1,100 Alphatec Electronics
Public Co. Ltd. TH 13,900
---------
45,731
---------
TRANSPORTATION - 0.9%
1,500 Koninklijke Nedlloyd Groep NV NL 38,082
---------
38,082
---------
UTILITIES - 5.5%
3,100 Telecom Argentina SA (Class B) AR 11,903
2,500,000 Companhia Energetica de
Minas Gerais BR 54,079
* 741 Ceske Energeticke Zavody AS CZ 28,903
10,000 Boustead Holdings Berhad MY 20,079
1,200 Electra De Viesgo SA SP 23,849
50 Aare-Tessin AG
(Registered Shares) SZ 33,671
3,800 Northumbrian Water Group PLC UK 59,913
---------
232,397
---------
TOTAL STOCKS (Cost $4,377,310) 4,160,738
---------
</TABLE>
<TABLE>
<CAPTION>
Country Value
Face Amount/Issuer Code (Note 1)
<S> <C> <C>
SHORT TERM INVESTMENTS - 0.2%
7,165 Bankers Trust Commingled Trust Fund US 7,165
-------------
TOTAL SHORT TERM INVESTMENTS (Cost $7,165) 7,165
-------------
TOTAL INVESTMENTS (Cost $4,384,475), 98.2% 4,167,903
OTHER ASSETS AND LIABILITIES, NET, 1.8% 76,956
-------------
TOTAL NET ASSETS, 100.0% $ 4,244,859
=============
<FN>
*Non-income producing securities
</FN>
</TABLE>
The accompanying notes are an integral part of these financial statements.
FREMONT MUTUAL FUNDS
27
<PAGE> 28
FREMONT INTERNATIONAL SMALL CAP FUND
October 31, 1995
COUNTRY DIVERSIFICATION
<TABLE>
<CAPTION>
Country % Of
Code Country Name Net Assets
-------------------------------------------------
<S> <C> <C>
AR Argentina 2.4%
AS Austria 0.8%
AU Australia 6.2%
BE Belgium 1.5%
BR Brazil 6.4%
CN Canada 1.6%
CZ Czech Republic 2.3%
FR France 11.0%
GM Germany 1.8%
GR Greece 4.1%
HK Hong Kong 4.3%
ID Indonesia 0.6%
IT Italy 0.5%
JP Japan 14.6%
MX Mexico 2.2%
MY Malaysia 5.0%
NL Netherlands 7.0%
NO Norway 0.3%
NZ New Zealand 1.7%
PH Philippines 0.5%
PT Portugal 1.0%
SG Singapore 3.0%
SA South Africa 2.4%
SP Spain 0.6%
SW Sweden 2.1%
SZ Switzerland 3.4%
TH Thailand 3.0%
TU Turkey 2.0%
UK United Kingdom 5.7%
US United States 2.0%
------
TOTAL 100.0%
======
</TABLE>
The accompanying notes are an integral part of these financial statements.
FREMONT MUTUAL FUNDS
28
<PAGE> 29
FREMONT U.S. MICRO-CAP FUND
October 31, 1995
STATEMENT OF INVESTMENTS
IN SECURITIES AND NET ASSETS
<TABLE>
<CAPTION>
Value
Shares Security Description (Note 1)
- -----------------------------------------------------------------------------
<S> <C> <C>
STOCKS - 88.2%
CONSUMER DURABLES - 5.1%
*14,550 Leslie's Poolmart $ 210,975
* 3,000 SCP Pool Corp. 30,375
* 5,200 West Marine, Inc. 158,600
-------------
399,950
-------------
CONSUMER NON-DURABLES - 1.2%
* 2,400 Longhorn Steaks, Inc. 40,200
*10,000 Mountasia Entertainment
International, Inc. 56,250
-------------
96,450
-------------
CONSUMER SERVICES - 12.9%
13,600 Barefoot, Inc. 164,900
* 5,600 Damark International, Inc. (Class A) 33,600
*12,100 Garden Ridge Corp. 432,575
* 4,200 Logan's Roadhouse, Inc. 63,000
* 6,250 Saga Communications, Inc. (Class A) 98,438
*21,600 Video Sentry Corp. 216,000
-------------
1,008,513
-------------
ENERGY - 7.9%
*23,500 Core Laboratories NV 240,875
*14,000 Cairn Energy USA, Inc. 168,000
*11,000 Lomak Petroleum, Inc. 85,250
* 8,500 Numar Corp. 89,250
* 7,500 Tipperary Corp. 30,000
-------------
613,375
-------------
FINANCIAL SERVICES - 7.7%
* 4,200 Calumet Bancorp, Inc. 114,450
4,500 ISB Financial Corp. 75,375
* 4,500 Imperial Thrift & Loan Association 51,750
4,500 Life Bancorp, Inc. 69,750
*10,000 PennFed Financial Services, Inc. 145,000
8,000 Sirrom Capital Corp. 141,000
-------------
597,325
-------------
HEALTH CARE - 12.7%
*14,700 Cytel Corp. 75,338
* 4,500 Enterprise Systems, Inc. 105,187
*39,000 Gensia, Inc. 165,750
* 9,900 Health Payment Review, Inc. 257,400
* 2,700 Liposome Co., Inc. 41,512
*15,800 Penederm, Inc. 156,025
*11,300 Summit Medical Systems, Inc. 186,450
-------------
987,662
-------------
RAW MATERIALS - 4.2%
8,500 Delta & Pine Land Co. $ 329,375
-------------
329,375
-------------
SHELTER - 3.5%
*21,000 D.R. Horton, Inc. 233,625
4,000 Engle Homes, Inc. 35,000
-------------
268,625
-------------
TECHNOLOGY (EQUIPMENT) - 18.5%
*12,000 Ade Corp. 180,000
*24,000 Applied Signal Technology, Inc. 114,000
*16,000 CEM Corp. 210,000
* 4,000 Computer Management Sciences, Inc. 82,000
* 9,000 Elantec Semiconductor, Inc. 65,250
*10,300 Hologic, Inc. 267,800
*10,000 Micrel, Inc. 227,500
* 8,000 PRI Automation, Inc. 296,000
-------------
1,442,550
-------------
TECHNOLOGY (SOFTWARE) - 13.2%
*12,000 Speedfam International, Inc. 196,500
*23,700 State of the Art, Inc. 254,775
*12,700 Truevision 98,425
* 9,000 Verity, Inc. 330,750
* 4,500 Veritas Software Corp. 145,125
-------------
1,025,575
-------------
TRANSPORTATION - 1.3%
* 5,000 RailTex, Inc. 103,750
-------------
103,750
-------------
TOTAL STOCKS (Cost $5,925,270) 6,873,150
-------------
</TABLE>
<TABLE>
Value
Face Amount/Issuer/Discount Rate/Stated Maturity (Note 1)
- ----------------------------------------------------------
<S> <C>
SHORT TERM INVESTMENTS- 11.1%
365,479 Bankers Trust Commingled Trust Fund 365,479
500,000 Federal Home Loan Mortgage Corp.,
Discount Note, 5.600%, 11/01/95 500,000
-------------
TOTAL SHORT TERM INVESTMENTS (Cost $865,479) 865,479
-------------
TOTAL INVESTMENTS (Cost $6,790,749), 99.3% 7,738,629
OTHER ASSETS AND LIABILITIES, NET, 0.7% 53,488
-------------
TOTAL NET ASSETS, 100.0% $ 7,792,117
=============
<FN>
*Non-income producing securities
</FN>
</TABLE>
The accompanying notes are an integral part of these financial statements.
FREMONT MUTUAL FUNDS
29
<PAGE> 30
FREMONT GROWTH FUND
October 31, 1995
STATEMENT OF INVESTMENTS
IN SECURITIES AND NET ASSETS
<TABLE>
<CAPTION>
Country Value
Shares Security Description Code (Note 1)
- --------------------------------------------------------------
<S> <C> <C> <C>
STOCKS - 95.3%
BUSINESS EQUIPMENT & SERVICES - 6.3%
3,600 Automatic Data Processing, Inc. US $ 257,400
*14,000 Ceridian Corp. US 609,000
2,600 Dun & Bradstreet Corp. US 155,350
23,301 First Data Corp. US 1,540,798
4,700 General Motors Corp. (Class E) US 221,488
*14,300 Office Depot, Inc. US 409,338
8,250 Paychex, Inc. US 357,844
8,300 WMX Technologies, Inc. US 233,437
---------
3,784,655
---------
CAPITAL GOODS - 3.1%
3,300 Emerson Electric Co. US 235,125
12,900 General Electric Co. US 815,925
3,200 Illinois Tool Works, Inc. US 186,000
* 7,000 Owens-Corning Fiberglass Corp. US 296,625
3,400 PPG Industries, Inc. US 144,500
* 5,000 Varity Corp. US 181,250
---------
1,859,425
---------
CONSUMER DURABLES - 1.3%
4,000 Goodyear Tire & Rubber Co. US 152,000
23,000 Harley-Davidson, Inc. US 615,250
---------
767,250
---------
CONSUMER NON-DURABLES - 13.6%
3,500 Anheuser Busch Cos., Inc. US 231,000
8,300 Archer Daniels Midland Co. US 133,838
3,200 Campbell Soup Co. US 167,600
17,900 Coca-Cola Co. US 1,286,563
2,400 Colgate Palmolive Co. US 166,200
2,700 ConAgra, Inc. US 104,287
2,000 CPC International US 132,750
* 3,300 Crown Cork & Seal Co., Inc. US 115,087
4,700 Eastman Kodak Co. US 294,337
3,100 General Mills, Inc. US 177,862
18,400 Gillette Co. US 890,100
3,300 Heinz (H.J.) & Co. US 153,450
3,000 Kellogg Co. US 216,750
11,800 Pepsico, Inc. US 622,450
20,200 Philip Morris Cos., Inc. US 1,706,900
16,000 Procter & Gamble Co. US 1,296,000
2,100 Ralston Purina Group US 124,688
5,900 Sara Lee Corp. US 173,313
5,400 Tyson Foods, Inc. (Class A) US 128,925
---------
8,122,100
---------
CONSUMER SERVICES - 5.2%
9,000 Loewen Group, Inc. CN 360,422
2,200 Capital Cities/ABC, Inc. US 260,975
2,300 CBS, Inc. US 185,725
*20,600 CUC International, Inc. US 713,275
CONSUMER SERVICES (CONTINUED)
6,900 Disney (Walt) Co. US $ 397,612
8,500 Marriott International, Inc. US 313,437
6,800 Mattel, Inc. US 195,500
*10,300 Viacom, Inc. (Class B) US 515,000
600 Washington Post Co. (Class B) US 174,000
---------
3,115,946
---------
ENERGY - 2.8%
3,000 Amoco Corp. US 191,625
1,500 Atlantic Richfield Co. US 160,125
2,600 Exxon Corp. US 198,575
1,700 Mobil Corp. US 171,275
6,000 Schlumberger Ltd. US 373,500
11,000 Union Texas Petroleum
Holdings, Inc. US 198,000
13,500 Unocal Corp. US 354,375
---------
1,647,475
---------
FINANCIAL SERVICES - 8.6%
12,000 American Express Co. US 487,500
13,000 American International
Group, Inc. US 1,096,875
13,500 Citicorp US 875,812
8,000 Exel Ltd. US 428,000
6,500 Federal Home Loan
Mortgage Corp. US 450,125
900 General Re Corp. US 130,388
14,000 Mercury Finance Co. US 269,500
10,000 Mercury General Corp. US 420,000
10,000 MGIC Investment Corp. US 568,750
13,000 Norwest Corp. US 383,500
1,000 Progressive Corp. US 41,500
---------
5,151,950
---------
HEALTH CARE - 16.1%
10,700 Abbott Laboratories US 425,325
4,600 American Home Products Corp. US 407,675
*14,000 Amgen, Inc. US 672,000
2,200 Becton Dickinson & Co. US 143,000
* 2,700 Boston Scientific Corp. US 113,737
7,000 Bristol-Myers Squibb Co. US 533,750
6,100 Columbia HCA Healthcare Corp. US 299,662
* 2,500 Forest Laboratories, Inc.
(Class A) US 103,437
7,000 HBO & Co. US 495,250
*12,500 Healthsouth Rehabilitation
Corp. US 326,562
16,800 Johnson & Johnson US 1,369,200
3,900 Lilly (Eli) & Co. US 376,838
13,000 Medtronic, Inc. US 750,750
14,600 Merck & Co. US 839,500
*15,000 Mid Atlantic Medical
Services, Inc. US 298,125
24,100 Pfizer, Inc. US 1,382,738
5,400 Schering Plough Corp. US 289,575
6,000 Stryker Corp. US 270,750
10,000 United Healthcare Corp. US 531,250
---------
9,629,124
---------
<FN>
*Non-income producing securities
</FN>
</TABLE>
The accompanying notes are an integral part of these financial statements.
FREMONT MUTUAL FUNDS
30
<PAGE> 31
FREMONT GROWTH FUND
October 31, 1995
<TABLE>
<CAPTION>
Country Value
Shares Security Description Code (Note 1)
- --------------------------------------------------------------
<S> <C> <C> <C>
MISCELLANEOUS - 3.1%
29,100 Inefficient Market Fund, Inc. US $ 305,550
56,500 Morgan Grenfell Small Cap
Fund, Inc. US 656,813
69,800 Royce Value Trust US 898,675
----------
1,861,038
----------
MULTI-INDUSTRY - 1.0%
1,700 ITT Corp. US 208,250
6,800 Minnesota Mining &
Manufacturing Co. US 386,750
----------
595,000
----------
RAW MATERIALS - 1.8%
* 4,300 Alumax, Inc. US 126,850
3,500 Du Pont (E.I.) de Nemours & Co. US 218,313
9,400 Engelhard Corp. US 233,825
5,000 Monsanto Co. US 523,750
----------
1,102,738
----------
RETAIL - 3.9%
* 4,300 Federated Department
Stores, Inc. US 109,112
21,700 Home Depot, Inc. US 808,325
8,800 McDonalds Corp. US 360,800
* 3,700 Safeway, Inc. US 174,825
* 5,300 Stop & Shop Cos., Inc. US 109,975
* 6,300 Toys R Us, Inc. US 137,813
27,800 Wal Mart Stores, Inc. US 601,175
----------
2,302,025
----------
SHELTER - 1.1%
3,500 Georgia Pacific Corp. US 288,750
4,200 International Paper Co. US 155,400
2,900 Kimberly-Clark Corp. US 210,613
----------
654,763
----------
TECHNOLOGY (COMPONENTS) - 12.1%
* 8,000 3Com Corp. US 376,000
3,200 Amp, Inc. US 125,600
* 9,000 Applied Materials, Inc. US 451,125
*19,200 Cisco Systems, Inc. US 1,488,000
23,500 Intel Corp. US 1,642,062
* 3,000 Litton Industries, Inc. US 118,875
*14,000 LSI Logic Corp. US 659,750
2,800 Micron Technology, Inc. US 197,750
16,700 Motorola, Inc. US 1,095,937
*14,000 Novadigm, Inc. US 287,000
3,800 Raytheon Co. US 165,775
2,700 Texas Instruments, Inc. US 184,275
* 9,000 Xilinx, Inc. US 414,000
----------
7,206,149
----------
TECHNOLOGY (EQUIPMENT) - 5.4%
*29,900 AirTouch Communications, Inc. US 852,150
8,700 Boeing Co. US 570,938
* 3,600 Compaq Computer Corp. US 200,700
*13,500 DSC Communications Corp. US 499,500
6,900 Hewlett-Packard Co. US 639,113
1,800 International Business Machines US 175,050
* 8,000 Silicon Graphics, Inc. US 266,000
----------
3,203,451
----------
TECHNOLOGY (SOFTWARE) - 5.6%
9,950 Computer Associates
International, Inc. US $ 547,250
*13,500 Microsoft Corp. US 1,350,000
*22,100 Oracle Systems Corp. US 964,113
* 7,000 Parametric Technology Corp. US 468,125
----------
3,329,488
----------
TRANSPORTATION - 0.3%
2,400 Union Pacific Corp. US 156,900
----------
156,900
----------
UTILITIES - 4.0%
5,000 Ameritech Corp. US 270,000
13,800 AT&T Corp. US 883,200
3,900 Bell Atlantic Corp. US 248,138
4,200 Century Telephone Enterprises US 121,800
15,100 Enron Corp. US 519,062
6,400 Illinova Corp. US 181,600
3,200 Telephone & Data Systems, Inc. US 128,000
----------
2,351,800
----------
TOTAL STOCKS (Cost $47,793,575) 56,841,277
----------
</TABLE>
<TABLE>
<CAPTION>
Country Value
Face Amount/Issuer Code (Note 1)
- ---------------------------------------------------------------------
<S> <C> <C>
SHORT TERM INVESTMENTS - 4.0%
2,353,577 Bankers Trust Commingled Trust Fund US 2,353,577
------------
TOTAL SHORT TERM INVESTMENTS (Cost $2,353,577) 2,353,577
------------
TOTAL INVESTMENTS (Cost $50,147,152), 99.3% 59,194,854
OTHER ASSETS AND LIABILITIES, NET, 0.7% 437,565
------------
NET ASSETS, 100.0% $ 59,632,419
============
</TABLE>
<TABLE>
<CAPTION>
COUNTRY DIVERSIFICATION
Country % Of
Code Country Name Net Assets
- ------------------------------------------------------
<S> <C>
CN Canada 0.6%
US United States 99.4%
------
TOTAL 100.0%
======
<FN>
*Non-income producing securities
</FN>
</TABLE>
The accompanying notes are an integral part of these financial statements.
FREMONT MUTUAL FUNDS
31
<PAGE> 32
FREMONT BOND FUND
October 31, 1995
- -------------------------------------------------------------------------------
<TABLE>
STATEMENT OF INVESTMENTS IN SECURITIES AND NET ASSETS
<CAPTION>
Coupon Maturity Value
Principal Issuer Rate Date (Note 1)
- ------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
BONDS - 76.1%
MORTGAGE BACKED SECURITIES - 42.3%
319,720 Collateralized Mortgage Obligation Trust CMO, 5-EZ . . . . . 9.400% 08/01/16 $ 337,405
488,483 Collateralized Mortgage Securities Corp. CMO, J-5Z, REMIC . . 7.985% 05/01/17 501,001
793,364 FHLMC A01007 . . . . . . . . . . . . . . . . . . . . . . . . 8.250% 08/01/17 820,997
1,409,404 FHLMC CMO, 1018 0Z, PAC-1 (11) REMIC . . . . . . . . . . . . 7.000% 11/15/20 1,387,487
1,498,834 FNMA ARM . . . . . . . . . . . . . . . . . . . . . . . . . . 6.878% 11/01/23 1,535,135
596,490 FNMA CMO, 1990-142J, REMIC . . . . . . . . . . . . . . . . . 9.250% 12/25/03 600,403
1,034,420 FNMA CMO, 1990-53G, PAC REMIC . . . . . . . . . . . . . . . 8.000% 12/25/18 1,046,378
200,000 FNMA CMO, 1993-11J, PAC REMIC . . . . . . . . . . . . . . . 7.500% 02/25/08 203,031
6,682,646 GNMA II ARM . . . . . . . . . . . . . . . . . . . . . . . . 7.250% 09/20/24 6,749,472
4,802,570 GNMA II ARM . . . . . . . . . . . . . . . . . . . . . . . . 6.500% 10/20/24 4,850,596
126,980 GNMA II ARM . . . . . . . . . . . . . . . . . . . . . . . . 7.500% 02/20/25 129,889
1,687,127 GNMA II ARM . . . . . . . . . . . . . . . . . . . . . . . . 7.500% 03/20/25 1,725,779
1,613,946 MDC Mortgage Funding Corp. CMO, P-4Z . . . . . . . . . . . . 9.500% 11/20/17 1,704,408
1,000,000 Morgan Stanley Mortgage Trust CMO, 40-8, PAC (11) REMIC . . 7.000% 07/20/21 999,150
7,338,223 Prudential Bache CMO Trust, 14-G, REMIC . . . . . . . . . . 8.400% 03/20/21 7,652,390
786,752 Resolution Trust Corp. CMO, 1992-M4 A1 REMIC . . . . . . . . 8.000% 09/25/21 806,169
1,552,747 Ryland Mortgage Securities Corp. CMO, 1993-8-A, REMIC . . . . 7.878% 09/25/23 1,576,039
967,849 Saxon Mortgage Securities Corp. CMO, 1992-1 A1, ARM REMIC . . 8.169% 09/25/22 987,659
3,000,000 Securitized Asset Sales, Inc. CMO, 1993-2A9, PAC (11) REMIC . 6.200% 07/25/08 2,907,180
----------
TOTAL MORTGAGE BACKED SECURITIES 36,520,568
----------
CORPORATE BONDS - 18.2%
1,000,000 Arkla, lnc. . . . . . . . . . . . . . . . . . . . . . . . . 9.200% 12/18/97 1,044,150
500,000 Cleveland Electric Co. . . . . . . . . . . . . . . . . . . . 9.110% 07/22/96 505,590
260,000 CMS Energy Corp., Deferred Coupon (Callable 10/01/97 @ 101.65) 9.875% 10/01/99 274,300
907,000 Delta Air Lines, Inc. (Sinking Fund Bond) . . . . . . . . . 9.450% 02/14/06 1,028,997
1,825,000 Delta Air Lines, Inc. (Sinking Fund Bond) . . . . . . . . . 9.450% 02/26/06 2,048,002
3,000,000 General Motors Acceptance Corp. . . . . . . . . . . . . . . 6.700% 05/20/96 3,010,170
2,000,000 Long Island Lighting Co. . . . . . . . . . . . . . . . . . . 8.750% 05/01/96 2,024,580
1,000,000 Ohio Edison . . . . . . . . . . . . . . . . . . . . . . . . 8.500% 05/01/96 1,009,880
2,000,000 Time Warner, Inc. . . . . . . . . . . . . . . . . . . . . . 7.450% 02/01/98 2,041,200
375,000 Time Warner, Inc., FRN (Callable 08/15/96 @ 101.5) . . . . . 6.835% 08/15/00 375,900
225,000 Time Warner, Inc. . . . . . . . . . . . . . . . . . . . . . 7.975% 08/15/04 231,140
450,000 Time Warner, Inc. . . . . . . . . . . . . . . . . . . . . . 8.110% 08/15/06 462,884
450,000 Time Warner, Inc. . . . . . . . . . . . . . . . . . . . . . 8.180% 08/15/07 464,283
1,000,000 United Airlines . . . . . . . . . . . . . . . . . . . . . . 10.670% 05/01/04 1,161,583
----------
TOTAL CORPORATE BONDS 15,682,859
----------
FOREIGN BONDS - 9.6%
DM 6,800,000 Federal Republic of Germany . . . . . . . . . . . . . . . . 6.250% 01/04/24 4,259,205
CAN$ 2,500,000 Government of Canada . . . . . . . . . . . . . . . . . . . . 8.750% 12/01/05 2,022,232
US$ 3,000,000 United Mexican States (Callable Semiannually
in June or December @ 100) . . . . . . . . . . . . . . . . . 6.875% 12/31/19 2,002,500
---------
TOTAL FOREIGN BONDS 8,283,937
---------
U.S. GOVERNMENT & AGENCY BONDS - 4.4%
290,000 Federal Home Loan Bank (Callable 04/29/96 @ 100) . . . . . . 6.380% 04/29/03 285,151
500,000 Federal Home Loan Mortgage Corp. (Callable 07/02/96 @ 100) . 6.390% 07/02/03 491,170
3,000,000 U.S. Treasury Notes . . . . . . . . . . . . . . . . . . . . . 5.785% 07/31/97 3,011,730
---------
TOTAL U.S. GOVERNMENT & AGENCY BONDS 3,788,051
---------
</TABLE>
The accompanying notes are an integral part of these financial statements.
FREMONT MUTUAL FUNDS
32
<PAGE> 33
FREMONT BOND FUND
October 31, 1995
<TABLE>
- ---------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
Coupon Maturity Value
Principal Issuer Rate Date (Note 1)
- --------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
STRIPPED MORTGAGE SECURITIES - 1.6%
3,596,654 FHLMC Interest Only, 1587HA, PAC-1 REMIC . . . . . . . . . . 6.500% 10/15/08 $ 496,788
5,419,230 FNMA lnterest Only, 1994-27WB, PAC-1 REMIC . . . . . . . . . 6.500% 06/25/14 514,117
390,998 FNMA Principal Only, G93-12B, PAC (11) REMIC . . . . . . . . . . . . . 02/25/23 367,902
-------------
TOTAL STRIPPED MORTGAGE SECURITIES 1,378,807
-------------
TOTAL BONDS (Cost $64,315,813) 65,654,022
-------------
CONVERTIBLE PREFERRED STOCK - 0.5%
20,000 Long Island Lighting Co. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 465,000
-------------
TOTAL CONVERTIBLE PREFERRED STOCK (Cost $486,000) 465,000
-------------
SHORT TERM SECURITIES - 22.0%
1,700,000 Abbott Laboratories, CP . . . . . . . . . . . . . . . . . . 5.710% 11/14/95 1,696,495
3,000,000 AT&T Corp., CP . . . . . . . . . . . . . . . . . . . . . . . 5.710% 11/29/95 2,986,677
717,851 Bankers Trust Commingled Trust Fund . . . . . . . . . . . . . . . . . . . . . . . . . 717,851
100,000 Hewlett-Packard Co., CP . . . . . . . . . . . . . . . . . . 5.630% 11/21/95 99,687
1,000,000 KFW International Finance, DN . . . . . . . . . . . . . . . 5.700% 01/17/96 987,808
1,500,000 Kimberly-Clark Corp., CP . . . . . . . . . . . . . . . . . . 5.730% 11/14/95 1,496,896
900,000 Mexico Government Bond, Tesobono . . . . . . . . . . . . . . 16.407% 01/18/96 884,250
2,000,000 Minnesota Mining & Manufacturing Co., CP . . . . . . . . . . 5.730% 11/01/95 2,000,000
1,000,000 New South Wales Treasury, DN . . . . . . . . . . . . . . . . 5.660% 11/10/95 998,585
3,000,000 Oesterreichische Kontrollbank, DN . . . . . . . . . . . . . 5.700% 11/10/95 2,995,725
3,500,000 Procter & Gamble, CP . . . . . . . . . . . . . . . . . . . . 5.630% 11/17/95 3,491,242
+ 10,000 U.S. Treasury Bill . . . . . . . . . . . . . . . . . . . . . 5.450% 11/16/95 9,977
+ 230,000 U.S. Treasury Bill . . . . . . . . . . . . . . . . . . . . . 5.880% 11/16/95 229,437
+ 80,000 U.S. Treasury Bill . . . . . . . . . . . . . . . . . . . . . 5.280% 02/08/96 78,830
+ 50,000 U.S. Treasury Bill . . . . . . . . . . . . . . . . . . . . . 5.300% 02/08/96 49,269
+ 190,000 U.S. Treasury Bill . . . . . . . . . . . . . . . . . . . . . 5.250% 02/15/96 187,025
+ 100,000 U.S. Treasury Bill . . . . . . . . . . . . . . . . . . . . . 5.290% 02/15/96 98,434
-------------
TOTAL SHORT TERM SECURITIES (Cost $18,992,002) 19,008,188
-------------
</TABLE>
<TABLE>
<CAPTION>
Number of Value
Contracts Description (Note 1)
- -------------------------------------------------------------------------------------------------------------------------------
PUT OPTIONS - 0.0%
<S> <C> <C> <C>
35 CBOT 30 yr. U.S. Treasury Bond Futures, Strike @106, Exp. 11/17/95 . . . . . . . . . . . . . 547
--------------
TOTAL PUT OPTIONS (Cost $705) 547
--------------
TOTAL INVESTMENTS (Cost $83,794,520), 98.6% 85,127,757
TOTAL OTHER ASSETS AND LIABILITIES, NET, 1.4% 1,214,914
--------------
NET ASSETS, 100.0% $ 86,342,671
==============
<FN>
PORTFOLIO ABBREVIATIONS:
ARM - Adjustable Rate Mortgage
CBOT - Chicago Board of Trade
CMO - Collateralized Mortgage Obligation
CP - Commercial Paper
DN - Discount Note
FHLMC - Federal Home Loan Mortgage Corp.
FNMA - Federal National Mortgage Association
FRN - Floating Rate Note
GNMA - Government National Mortgage Association
REMIC - Real Estate Mortgage Investment Conduit
+On deposit with broker for initial margin on futures contracts (Note 1).
</FN>
</TABLE>
The accompanying notes are an integral part of these financial statements.
FREMONT MUTUAL FUNDS
33
<PAGE> 34
FREMONT MONEY MARKET FUND
October 31, 1995
<TABLE>
<CAPTION>
- ---------------------------------------------------------------------------------------------------------------------------
STATEMENT OF INVESTMENTS IN SECURITIES AND NET ASSETS
Discount Maturity Value
Principal Issuer Rate Date (Note 1)
<S> <C> <C> <C> <C>
- ---------------------------------------------------------------------------------------------------------------------------
COMMERCIAL PAPER - 82.5%
10,000,000 Abbey National North America Corp. . . . . . . . . . 5.660% 12/07/95 $ 9,943,400
10,000,000 Alcatel Alsthom, Inc. . . . . . . . . . . . . . . . . 5.700% 01/17/96 9,878,083
10,000,000 American Express Credit Corp. . . . . . . . . . . . . 5.660% 12/18/95 9,926,106
10,000,000 Ameritech Capital Funding * . . . . . . . . . . . . . 5.540% 03/18/96 9,787,633
10,000,000 B.B.V. Finance (Delaware), Inc. . . . . . . . . . . . 5.730% 11/03/95 9,996,817
10,000,000 Bausch & Lomb, Inc. . . . . . . . . . . . . . . . . . 5.670% 02/09/96 9,842,500
10,000,000 Boral Industries, Inc. . . . . . . . . . . . . . . . 5.780% 11/27/95 9,958,256
5,000,000 Cadbury Schweppes Money Management PLC . . . . . . . 5.780% 11/15/95 4,988,761
10,000,000 Cargill Financial Services Corp.* . . . . . . . . . . 5.470% 01/12/96 9,890,600
10,000,000 CPC International* . . . . . . . . . . . . . . . . . 5.710% 01/10/96 9,888,972
5,000,000 Ford Motor Credit Corp. . . . . . . . . . . . . . . . 5.730% 11/14/95 4,989,654
10,000,000 Goldman Sachs & Co. . . . . . . . . . . . . . . . . . 5.680% 01/26/96 9,864,311
10,000,000 Halifax Building Society . . . . . . . . . . . . . . 5.690% 01/08/96 9,892,522
10,000,000 Hanson Finance PLC (UK) . . . . . . . . . . . . . . . 5.730% 11/13/95 9,980,900
10,000,000 Hitachi America Ltd. . . . . . . . . . . . . . . . . 5.970% 11/03/95 9,996,683
10,000,000 Merrill Lynch & Co., Inc. . . . . . . . . . . . . . . 5.720% 11/08/95 9,988,878
10,000,000 Mitsui & Co. . . . . . . . . . . . . . . . . . . . . . 5.730% 12/05/95 9,945,883
10,000,000 Rabobank Nederland . . . . . . . . . . . . . . . . . 5.620% 12/06/95 9,945,361
10,000,000 Sandoz Corp. . . . . . . . . . . . . . . . . . . . . 5.700% 01/29/96 9,859,083
10,000,000 Sonoco Products, Inc. . . . . . . . . . . . . . . . . 5.750% 11/07/95 9,990,417
10,000,000 Sony Capital Corp.* . . . . . . . . . . . . . . . . . 5.710% 12/11/95 9,936,556
10,000,000 Sumitomo Corp. of America . . . . . . . . . . . . . . 5.700% 12/22/95 9,919,250
10,000,000 Sweden, Kingdom of . . . . . . . . . . . . . . . . . 5.650% 11/27/95 9,959,195
10,000,000 Swedish Export Credit Corp. . . . . . . . . . . . . . 5.670% 11/06/95 9,992,125
8,900,000 Toshiba International Finance PLC (UK) . . . . . . . 5.750% 01/03/96 8,810,444
10,000,000 Yale University . . . . . . . . . . . . . . . . . . . 5.720% 01/31/96 9,855,411
-----------
TOTAL COMMERCIAL PAPER 247,027,801
-----------
OTHER SHORT TERM SECURITIES - 19.0%
24,778,657 Bankers Trust Commingled Trust Fund . . . . . . . . . 24,778,657
10,000,000 Bayerische Vereinsbank AG, Yankee CD + . . . . . . . . 5.900% 09/12/96 10,000,000
2,105,000 Federal Home Loan Bank, DN . . . . . . . . . . . . . . 5.520% 12/26/95 2,087,248
10,000,000 Federal National Mortgage Association, AN + . . . . . 5.660% 03/15/96 10,000,000
10,000,000 Federal National Mortgage Association, MTN + . . . . . 5.710% 06/10/96 9,994,672
-----------
TOTAL OTHER SHORT TERM SECURITIES 56,860,577
-----------
TOTAL INVESTMENTS (Cost $303,888,378), 101.5% 303,888,378
OTHER ASSETS AND LIABILITIES, NET (1.5)% (4,576,766)
-----------
NET ASSETS, 100.0% $299,311,612
============
<FN>
PORTFOLIO ABBREVIATIONS:
AN - Agency Note
CD - Certificate of Deposit
DN - Discount Note
MTN - Medium Term Note
*These securities are generally issued to institutional investors. Any resale
must be in an exempt transaction pursuant to Section 4(2) of the Securities Act
of 1933.
+ The rate indicated for these securities is the stated coupon rate.
</FN>
</TABLE>
The accompanying notes are an integral part of these financial statements.
FREMONT MUTUAL FUNDS
34
<PAGE> 35
FREMONT CALIFORNIA INTERMEDIATE TAX-FREE FUND
October 31, 1995
<TABLE>
- ---------------------------------------------------------------------------------------------------------------------------------
STATEMENT OF INVESTMENTS IN SECURITIES AND NET ASSETS
<CAPTION>
Coupon Maturity Value
Principal Issuer Rate Date (Note 1)
- --------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
MUNICIPAL BONDS - 97.1%
1,000,000 California State Dept. of Veterans Affairs, Home Purchase Revenue 1991 Ser. A. . 6.450% 08/01/00 $1,047,250
1,000,000 California State Dept. of Water Resources, Central Valley Project Revenue Ser. H 6.400% 12/01/00 1,099,690
California State GO
1,000,000 Various Purpose . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6.400% 08/01/96 1,019,120
1,000,000 Various Purpose . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6.500% 08/01/97 1,042,630
1,000,000 California State Public Works Board, Lease Revenue Dept. of Corrections,
Madera County State Prison 1990 Ser. A . . . . . . . . . . . . . . . . . . . . 6.700% 09/01/97 1,046,660
1,000,000 California State Public Works Board, Lease Revenue Refunding, Trustees of
The California State University, 1995 Ser. B . . . . . . . . . . . . . . . . . 5.600% 04/01/06 1,010,170
1,000,000 California State Public Works Board, Lease Revenue Dept. of Corrections,
Prison D . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5.100% 06/01/06 980,740
1,000,000 Contra Costa Transportation Authority, Sales Tax Revenue 1991 Ser. A . . . . . . 6.400% 03/01/01 1,093,090
1,000,000 Contra Costa Water Authority, Revenue Refunding 1993 Ser. A (FGIC Insured) . . . 5.300% 10/01/05 1,035,520
1,000,000 Contra Costa Water District, Water Revenue Ser. F (FGIC Insured) . . . . . . . . 5.250% 10/01/08 1,003,840
1,000,000 East Bay MUD, Water System Subordinated Revenue Ser. 1994 . . . . . . . . . . 8.500% 06/01/98 1,106,370
1,000,000 City of Irvine, Assessment District No. 89-10, Limited Obligation
Refunding Improvement (MBIA Insured) . . . . . . . . . . . . . . . . . . . . . . 4.200% 09/02/05 922,900
1,000,000 Los Angeles Dept. of Water & Power, Electric Plant Revenue Refunding . . . . . . 5.500% 09/01/07 1,025,890
1,000,000 Los Angeles Dept. of Water & Power, Electric Plant Revenue . . . . . . . . . . 4.700% 10/15/06 962,170
1,000,000 Los Angeles Dept. of Water & Power, Waterworks Revenue Refunding . . . . . . . . 5.625% 04/15/08 1,025,390
1,000,000 City of Los Angeles, 1990 Solid Waste Collection Project, COP Revenue. . . . . . 6.400% 11/01/97 1,045,110
750,000 Los Angeles County Sanitation District Finance Authority, 1993 Ser. A. . . . . . 5.250% 10/01/06 768,315
1,000,000 Los Angeles County Transportation Authority, Sales Tax Revenue Ser. A. . . . . . 6.300% 07/01/01 1,086,480
1,000,000 Metropolitan Water District of Southern California, Waterworks GO Refunding
1993 Ser. A . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5.250% 03/01/05 1,038,420
1,000,000 Modesto High School District, 1993 GO Refunding (FGIC Insured) . . . . . . . . . 5.300% 08/01/04 1,042,200
1,000,000 Modesto Irrigation District Finance Authority, Domestic Water Project Revenue
1992 Ser. A (AMBAC Insured) . . . . . . . . . . . . . . . . . . . . . . . . . . 5.650% 09/01/03 1,068,000
500,000 M-S-R Public Power Agency, San Juan Project Revenue Ser. D (AMBAC Insured) . . . 6.300% 07/01/98 521,615
1,000,000 M-S-R Public Power Agency, San Juan Project Revenue Ser. F . . . . . . . . . . . 5.650% 07/01/03 1,066,790
1,000,000 Northern California Power Agency, Geothermal Project #3 Revenue Ser. A . . . . . 5.600% 07/01/06 1,024,940
1,000,000 Orange County Local Transportation Authority, Sales Tax Revenue First Ser. M . . 6.000% 02/15/06 1,036,400
1,000,000 Orange County Transportation Authority, Measure M Sales Tax Revenue Second
Senior Ser. 1994 (FGIC Insured) . . . . . . . . . . . . . . . . . . . . . . . . 5.000% 02/15/08 974,840
500,000 Orange County Water District, COP 1990 Project A . . . . . . . . . . . . . . . . 6.500% 08/15/98 532,095
500,000 City of Pasadena, Electric Works Revenue 1990 Series . . . . . . . . . . . . . . 6.500% 08/01/99 540,285
1,500,000 City of Pasadena, GO Refunding Police and Jail Building 1993 . . . . . . . . . . 5.000% 06/01/07 1,529,100
1,000,000 Rancho Cucamonga RDA, 1994 Tax Allocation Refunding (MBIA Insured) . . . . . . . 5.000% 09/01/07 993,320
1,000,000 City of Riverside, Electric Revenue 1991 . . . . . . . . . . . . . . . . . . . 6.100% 10/01/00 1,073,700
1,000,000 City of Riverside, Electric Revenue Refunding 1993 . . . . . . . . . . . . . . 5.000% 10/01/06 996,210
1,000,000 Sacramento County Sanitation District Finance Authority, Revenue
(MBIA Insured) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5.000% 12/01/08 981,610
1,000,000 Sacramento MUD, Electric Revenue 1991 Ser. Y . . . . . . . . . . . . . . . . . 6.250% 09/01/00 1,082,630
1,000,000 San Bernardino County Transportation Authority, Sales Tax Revenue 1992 Ser. A
(FGIC Insured) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6.000% 03/01/03 1,085,910
1,000,000 City and County of San Francisco International Airport Second Series Revenue
Issue 1 (AMBAC Insured) . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6.100% 05/01/03 1,093,910
1,000,000 City and County of San Francisco RDA, Lease Revenue Ser. 1991
(George R. Moscone Convention Center) (AMBAC Insured) . . . . . . . . . . . . . 6.200% 10/01/00 1,084,280
1,000,000 City and County of San Francisco, Sewer Revenue Refunding Ser. 1992
(AMBAC Insured) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5.800% 10/01/05 1,071,430
1,000,000 San Francisco, CA Bay Area Rapid Transit, Sales Tax Revenue Refunding. . . . . . 6.400% 07/01/97 1,038,500
1,000,000 San Jose, CA Finance Authority Revenue, Convention Center Refunding
Project Ser. C (MBIA Insured) . . . . . . . . . . . . . . . . . . . . . . . . . 5.750% 09/01/03 1,060,680
</TABLE>
The accompanying notes are an integral part of these financial statements.
FREMONT MUTUAL FUNDS
35
<PAGE> 36
FREMONT CALIFORNIA INTERMEDIATE TAX-FREE FUND
October 31, 1995
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------------------------------------------------------
Coupon Maturity Value
Principal Issuer Rate Date (Note 1)
- -------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
MUNICIPAL BONDS (CONTINUED)
1,000,000 Santa Margarita/Dana Point Authority Orange County, Revenue Bond Ser. A . . . . . 5.375% 08/01/04 $1,041,700
Southern California Public Power Authority
1,000,000 Mead-Phoenix Project Revenue 1994 Ser. A (AMBAC Insured). . . . . . . . . . . . 4.750% 07/01/09 923,090
1,000,000 Mead-Phoenix Project Revenue 1994 Ser. A (AMBAC Insured) . . . . . . . . . . . 4.750% 07/01/08 946,910
1,000,000 Palo Verde Power Projects Revenue, 1993 Ser. A . . . . . . . . . . . . . . . . 5.100% 07/01/06 1,004,100
500,000 City of Stockton, 1990 Wastewater System Project COP (AMBAC Insured). . . . . . . 6.700% 09/01/98 535,235
500,000 City of Stockton, 1990 Wastewater System Project COP (AMBAC Insured). . . . . . . 6.800% 09/01/99 541,025
1,000,000 University of California, Housing System Revenue Ser. A (MBIA Insured). . . . . . 5.500% 11/01/08 1,023,560
1,000,000 West & Central Basin Financing Authority, Water Revenue West Basin
Refunding Project (AMBAC Insured). . . . . . . . . . . . . . . . . . . . . . . . 5.125% 08/01/06 1,012,170
1,500,000 Yucalpa School Facilities Financing Authority, 1995 Sweetwater Refunding
(MBIA Insured) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6.000% 09/01/10 1,551,105
----------
TOTAL MUNICIPAL BONDS (Cost $46,944,424) . . . . . . . . . . . . . . . . . . . . 48,837,095
----------
SHORT-TERM SECURITIES - 1.6%
816,260 Provident Institutional Fund . . . . . . . . . . . . . . . . . . . . . . . . . 816,260
----------
TOTAL SHORT TERM SECURITIES (Cost $816,260) 816,260
----------
TOTAL INVESTMENTS (Cost $47,760,684) 98.7% 49,653,355
OTHER ASSETS AND LIABILITIES, NET 1.3% 659,846
-----------
NET ASSETS, 100.0% $50,313,201
===========
<FN>
PORTFOLIO ABBREVIATIONS:
AMBAC - American Municipal Bond Assurance Corp.
COP - Certificates of Participation
FGIC - Financial Guaranty Insurance Corp.
GO - General Obligation
MBIA - Municipal Bond Investor Assurance Corp.
MUD - Municipal Utility District
RDA - Redevelopment Agency
</FN>
</TABLE>
The accompanying notes are an integral part of these financial statements.
FREMONT MUTUAL FUNDS
36
<PAGE> 37
This page has been left blank intentionally.
FREMONT MUTUAL FUNDS
37
<PAGE> 38
FREMONT MUTUAL FUNDS, INC.
October 31, 1995
- --------------------------------------------------------------------------------
<TABLE>
STATEMENTS OF ASSETS AND LIABILITIES
<CAPTION>
International International
Global Growth Small Cap
Fund Fund Fund
------------------- ------------------- -----------------
<S> <C> <C> <C>
ASSETS:
Investments in securities at cost $ 435,900,719 $ 30,095,936 $ 4,384,475
=================== =================== =================
Investments in securities at value (Note 1) 482,376,221 32,155,472 4,167,903
Cash -- -- 80,807
Dividends and interest receivable 3,479,812 57,128 15,046
Receivable for securities sold 1,109,860 -- --
Receivable from sale of fund shares 50,857 10,545 19,160
Receivable for variation margin -- -- --
Unrealized appreciation on foreign currency contracts 30,825 -- --
Prepaid expense 23,113 -- --
Unamortized organization costs (Note 3) -- -- --
------------------- ------------------- -----------------
TOTAL ASSETS 487,070,688 32,223,145 4,282,916
------------------- ------------------- -----------------
LIABILITIES:
Unrealized depreciation on foreign currency contracts -- -- --
Liability for options written -- -- --
Variation margin payable 53,025 -- --
Dividends payable to shareholders 125,057 383 15,458
Payable for securities purchased 3,182,827 26,401 15,640
Payable for fund shares redeemed 895,038 -- --
Accrued expenses:
Investment advisory and administrative fees 307,043 40,348 6,959
Shareholder servicing fees 6,500 -- --
Custody fees 76,603 -- --
Accounting fees 29,822 -- --
Audit and legal fees 31,617 -- --
Other payables 8,300 -- --
------------------- ------------------- -----------------
TOTAL LIABILITIES 4,715,832 67,132 38,057
------------------- ------------------- -----------------
NET ASSETS $ 482,354,856 $ 32,156,013 $ 4,244,859
================== =================== =================
Net assets consist of:
Paid in capital $ 416,233,588 $ 32,362,847 $ 4,496,814
Undistributed net investment income (loss) 2,004,174 170,045 9,448
Unrealized appreciation (depreciation) on investments 43,682,144 2,059,536 (216,572)
Unrealized appreciation (depreciation) on foreign currency
contracts and other assets and liabilities 38,458 661 (946)
Accumulated net realized gain (loss) 20,396,492 (2,437,076) (43,885)
------------------- ------------------- -----------------
NET ASSETS $ 482,354,856 $ 32,156,013 $ 4,244,859
=================== =================== =================
SHARES OF CAPITAL STOCK OUTSTANDING 33,873,265 3,309,234 471,446
=================== =================== =================
NET ASSET VALUE PER SHARE $ 14.24 $ 9.72 $ 9.00
=================== =================== ================
</TABLE>
The accompanying notes are an integral part of these financial statements.
FREMONT MUTUAL FUNDS
38
<PAGE> 39
<TABLE>
<CAPTION>
California
U.S. Money Intermediate
Micro-Cap Growth Bond Market Tax-Free
Fund Fund Fund Fund Fund
------------------ ------------------- ------------------ -------------------- ----------------
<S> <C> <C> <C> <C>
$ 6,790,749 $ 50,147,152 $ 83,794,520 $ 303,888,378 $ 47,760,684
================== =================== ================== ==================== ================
7,738,629 59,194,854 85,127,757 303,888,378 49,653,355
-- 24,470 213,341 -- 76,349
4,148 50,781 1,071,726 447,148 661,237
-- 545,011 -- -- --
61,518 21,900 1,946 1,380,490 1,650
-- -- 59,813 -- --
-- -- -- -- --
-- 429 -- 3,163 627
-- 5,278 4,494 -- --
------------------ ------------------- ------------------ -------------------- ----------------
7,804,295 59,842,723 86,479,077 305,719,179 50,393,218
------------------ ------------------- ------------------ -------------------- ----------------
-- -- 21,767 -- --
-- -- 2,188 -- --
-- -- -- -- --
-- 617 11,941 20,109 26,735
-- 125,579 -- -- --
-- 14,265 38,295 6,283,032 --
12,178 32,559 28,859 54,800 13,016
-- 2,000 1,750 2,400 2,100
-- 18,070 10,025 8,325 2,341
-- 4,264 6,231 15,019 5,670
-- 12,530 12,000 12,230 17,280
-- 420 3,350 11,652 12,875
------------------ ------------------- ------------------ -------------------- ----------------
12,178 210,304 136,406 6,407,567 80,017
------------------ ------------------- ------------------ -------------------- ----------------
$ 7,792,117 $ 59,632,419 $ 86,342,671 $ 299,311,612 $ 50,313,201
================== =================== ================== ==================== ================
$ 6,526,144 $ 47,012,251 $ 82,699,455 $ 299,311,612 $ 48,300,312
-- 9,309 86,546 -- --
947,880 9,047,702 2,078,249 -- 1,892,671
-- -- (23,464) -- --
318,093 3,563,157 1,501,885 -- 120,218
------------------ ------------------- ------------------ -------------------- ----------------
$ 7,792,117 $ 59,632,419 $ 86,342,671 $ 299,311,612 $ 50,313,201
================== =================== ================== ==================== ================
543,454 4,564,901 8,521,976 299,311,612 4,633,776
================== =================== ================== ==================== ================
$ 14.34 $ 13.06 $ 10.13 $ 1.00 $ 10.86
================== =================== ================== ==================== ================
</TABLE>
FREMONT MUTUAL FUNDS
39
<PAGE> 40
FREMONT MUTUAL FUNDS, INC.
Year Ended October 31, 1995
- -------------------------------------------------------------------------------
<TABLE>
STATEMENTS OF OPERATIONS
<CAPTION>
International International
Global Growth Small Cap
Fund Fund Fund
------------------- --------------- --------------
<S> <C> <C> <C>
Investment income:
Interest $ 12,543,616 $ 165,307 $ 16,001
Dividends 5,033,955 623,022 86,278
------------- --------------- --------------
TOTAL INCOME* 17,577,571 788,329 102,279
------------- --------------- --------------
EXPENSES:
Investment advisory and administrative fees (Note 2) 3,418,558 439,970 68,433
Shareholders servicing fees 66,012 -- --
Custody fees 227,315 -- --
Accounting fees 160,313 -- --
Audit and legal fees 39,967 -- --
Directors' fees (Note 2) 1,936 -- --
Registration fees 25,099 -- --
Other 75,790 -- --
------------- --------------- --------------
TOTAL EXPENSES BEFORE REDUCTIONS 4,014,990 439,970 68,433
Expenses waived by Advisor -- -- (11,894)
------------- --------------- --------------
TOTAL NET EXPENSES 4,014,990 439,970 56,539
------------- --------------- --------------
NET INVESTMENT INCOME (LOSS) 13,562,581 348,359 45,740
------------- --------------- --------------
REALIZED AND UNREALIZED GAIN (LOSS) FROM INVESTMENTS
AND FOREIGN CURRENCY:
Net realized gain (loss) from:
Investments 23,444,879 (948,173) (21,568)
Transactions in written options -- -- --
Foreign currency transactions (435,755) (53,746) (14,440)
Net increase (decrease) in unrealized appreciation
(depreciation) on:
Investments 18,907,997 601,879 (203,902)
Translation of assets and liabilities in foreign currencies (44,605) (47) 10,337
------------- --------------- --------------
Net realized and unrealized gain (loss) from investments
and foreign currency 41,872,516 (400,087) (229,573)
------------- --------------- --------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM
OPERATIONS $ 55,435,097 $ (51,728) $ (183,833)
============= =============== ==============
<FN>
* Net of foreign taxes withheld of $332,410 for the Global Fund, $56,603
for the International Growth Fund, $9,851 for the International Small Cap
Fund, and $6,417 for the Growth Fund.
</FN>
</TABLE>
The accompanying notes are an integral part of these financial statements.
FREMONT MUTUAL FUNDS
40
<PAGE> 41
<TABLE>
<CAPTION>
California
U.S. Money Intermediate
Micro-Cap Growth Bond Market Tax-Free
Fund Fund Fund Fund Fund
-------------- --------------- ------------------ -------------------- -----------------
<S> <C> <C> <C> <C>
$ 46,139 $ 146,366 $ 4,960,774 $ 17,148,782 $ 3,057,222
5,964 631,693 35,250 -- --
-------------- --------------- ------------------ -------------------- -----------------
52,103 778,059 4,996,024 17,148,782 3,057,222
-------------- --------------- ------------------ -------------------- -----------------
94,198 254,882 377,026 1,049,432 284,195
-- 21,248 19,824 27,468 22,228
-- 44,248 19,251 31,251 9,761
-- 20,169 31,453 86,187 31,515
-- 14,841 14,978 17,912 23,437
-- 1,936 1,936 1,936 1,936
-- 17,115 19,596 51,707 3,309
-- 21,380 28,830 22,361 15,514
-------------- --------------- ------------------ -------------------- -----------------
94,198 395,819 512,894 1,288,254 391,895
(16,899) (16,411) (102,754) (428,369) (117,038)
-------------- --------------- ------------------ -------------------- -----------------
77,299 379,408 410,140 859,885 274,857
-------------- --------------- ------------------ -------------------- -----------------
(25,196) 398,651 4,585,884 16,288,897 2,782,365
-------------- --------------- ------------------ -------------------- -----------------
347,186 3,482,283 1,890,998 -- 119,954
-- -- 339,267 -- --
-- -- 82,647 -- --
888,690 6,445,736 3,540,395 -- 3,671,361
-- -- (23,464) -- --
-------------- --------------- ------------------ -------------------- -----------------
1,235,876 9,928,019 5,829,843 -- 3,791,315
-------------- --------------- ------------------ -------------------- -----------------
$ 1,210,680 $10,326,670 $10,415,727 $ 16,288,897 $ 6,573,680
============== =============== ================== ==================== =================
</TABLE>
FREMONT MUTUAL FUNDS
41
<PAGE> 42
FREMONT MUTUAL FUNDS, INC.
October 31, 1995
- ------------------------------------------------------------------------------
<TABLE>
STATEMENTS OF CHANGES IN NET ASSETS
<CAPTION>
International
Global Growth
Fund Fund
-------------------------- --------------------------
Year Year Year Period
Ended Ended Ended Ended
10/31/95 10/31/94 10/31/95 10/31/94#
---------- ---------- ---------- ----------
<S> <C> <C> <C> <C>
Increase (decrease) in net assets from:
Net investment income (loss) $ 13,562,581 $ 7,743,896 $ 348,359 $ 91,239
Net realized gain (loss) from investments and transactions
in written options 23,444,879 6,718,710 (948,173) (1,334,365)
Net realized gain (loss) from foreign currency transactions (435,755) (4,600,634) (53,746) (100,792)
Net unrealized appreciation (depreciation) on investments 18,907,997 (813,173) 601,879 1,457,657
Net unrealized appreciation (depreciation) on translation of
assets and liabilities in foreign currencies (44,605) 83,063 (47) 708
------------ ---------- ---------- ----------
Net increase (decrease) in net assets resulting from operations 55,435,097 9,131,862 (51,728) 114,447
------------ ---------- ---------- ----------
Distributions to shareholders:
From net investment income (16,914,918) (2,968,563) (269,553) --
From net realized gains (1,140,840) (3,909,900) -- --
------------ ---------- ---------- ----------
Total distributions (18,055,758) (6,878,463) (269,553) --
------------ ---------- ---------- ----------
Capital share transactions:
Proceeds from shares sold 110,900,850 309,350,014 4,286,553 32,167,188
Payments for shares redeemed (136,942,988) (51,004,535) (1,803,707) (2,556,349)
Reinvested dividends 17,395,011 6,698,270 269,162 --
------------ ---------- ---------- ----------
Total capital share transactions (8,647,127) 265,043,749 2,752,008 29,610,839
------------ ---------- ---------- ----------
Net increase (decrease) in net assets 28,732,212 267,297,148 2,430,727 29,725,286
Net assets at beginning of period 453,622,644 186,325,496 29,725,286 --
------------ ---------- ---------- ----------
NET ASSETS AT END OF PERIOD** $482,354,856 $453,622,644 $ 32,156,013 $ 29,725,286
============ ========== ========== ==========
CAPITAL TRANSACTIONS IN SHARES:
Sold 8,368,781 23,760,853 433,837 3,298,539
Redeemed (10,326,949) (3,868,898) (188,969) (261,900)
Reinvested dividends 1,282,980 505,604 27,727 --
------------ ---------- ---------- ----------
Net increase (decrease) in capital share transactions (675,188) 20,397,559 272,595 3,036,639
============ ========== ========== ==========
<FN>
# Period from February 1, 1994 (commencement of operations) to October 31, 1994.
+ Period from June 30, 1994 (commencement of operations) to October 31, 1994.
** Net assets at end of October 31, 1995 and October 31, 1994, respectively, include undistributed net
investment income (loss) of $2,004,174 and $5,356,511 for the Global Fund, $170,045 and $91,239 for the
International Growth Fund, $9,448 and $(1,256) for the International Small Cap Fund, $(25,253) and $(57)
for the U.S. Micro-Cap Fund, $9,309 and $115,797 for the Growth Fund, and $86,546 and $31,900 for the Bond Fund.
</FN>
</TABLE>
The accompanying notes are an integral part of these financial statements.
FREMONT MUTUAL FUNDS
42
<PAGE> 43
<TABLE>
<CAPTION>
International U.S.
Small Cap Micro-Cap Growth Bond
Fund Fund Fund Fund
--------------------------- --------------------------- --------------------------- ---------------------------
Year Period Year Period Year Year Year Year
Ended Ended Ended Ended Ended Ended Ended Ended
10/31/95 10/31/94+ 10/31/95 10/31/94+ 10/31/95 10/31/94 10/31/95 10/31/94
---------- ---------- ---------- ---------- ---------- ---------- ---------- ----------
<S> <C> <C> <C> <C> <C> <C> <C>
$ 45,740 $ (1,256) $ (25,196) $ 3,969 $ 398,651 $ 466,106 $ 4,585,884 $ 1,724,273
(21,568) (3) 347,186 (3,840) 3,482,283 2,473,244 2,230,265 (791,756)
(14,440) (7,874) -- -- -- -- 82,647 (19,271)
(203,902) (12,670) 888,690 59,190 6,445,736 (2,336,664) 3,540,395 (1,714,573)
10,337 (11,283) -- -- -- -- (23,464) --
---------- ---------- ---------- ---------- ---------- ---------- ---------- ----------
(183,833) (33,086) 1,210,680 59,319 10,326,670 602,686 10,415,727 (801,327)
---------- ---------- ---------- ---------- ---------- ---------- ---------- ----------
(35,036) -- -- (4,026) (505,139) (392,103) (4,531,238) (1,692,373)
-- -- -- -- (241,849) (2,111,288) -- --
---------- ---------- ---------- ---------- ---------- ---------- ---------- ----------
(35,036) -- -- (4,026) (746,988) (2,503,391) (4,531,238) (1,692,373)
---------- ---------- ---------- ---------- ---------- ---------- ---------- ----------
2,849,192 2,379,855 6,143,180 2,580,755 32,879,457 6,851,457 25,537,155 66,602,800
(172,610) (579,201) (1,614,127) (587,625) (10,815,329) (22,505,837) (13,731,939) (13,183,239)
19,578 -- -- 3,961 744,451 2,493,398 4,408,916 1,579,670
---------- ---------- ---------- ---------- ---------- ---------- ---------- ----------
2,696,160 1,800,654 4,529,053 1,997,091 22,808,579 (13,160,982) 16,214,132 54,999,231
---------- ---------- ---------- ---------- ---------- ---------- ---------- ----------
2,477,291 1,767,568 5,739,733 2,052,384 32,388,261 (15,061,687) 22,098,621 52,505,531
1,767,568 -- 2,052,384 -- 27,244,158 42,305,845 64,244,050 11,738,519
---------- ---------- ---------- ---------- ---------- ---------- ---------- ----------
$ 4,244,859 $ 1,767,568 $ 7,792,117 $ 2,052,384 $59,632,419 $27,244,158 $86,342,671 $64,244,050
========== ========== ========== ========== ========== ========== ========== ==========
308,867 237,224 462,168 254,056 2,872,926 618,873 2,579,889 6,969,743
(18,867) (57,953) (117,136) (56,017) (981,267) (2,009,215) (1,429,749) (1,361,785)
2,175 -- -- 383 68,568 236,032 454,805 166,041
---------- ---------- ---------- ---------- ---------- ---------- ---------- ----------
292,175 179,271 345,032 198,422 1,960,227 (1,154,310) 1,604,945 5,773,999
========== ========== ========== ========== ========== ========== ========== ==========
</TABLE>
FREMONT MUTUAL FUNDS
43
<PAGE> 44
FREMONT MUTUAL FUNDS, INC.
October 31, 1995
- -------------------------------------------------------------------------------
<TABLE>
STATEMENTS OF CHANGES IN NET ASSETS
<CAPTION>
California
Intermediate
Money Tax-Free
Market Fund
------------------------- ------------------------
Year Year Year Year
Ended Ended Ended Ended
10/31/95 10/31/94 10/31/95 10/31/94
-------- -------- -------- ---------
<S> <C> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS FROM:
Net investment income $ 16,288,897 $ 3,377,829 $ 2,782,365 $ 3,147,340
Net realized gain from investments -- -- 119,954 38,458
Net unrealized appreciation (depreciation) on investments -- -- 3,671,361 (5,886,267)
------------ ------------ ----------- ------------
Net increase (decrease) in net assets resulting from operations 16,288,897 3,377,829 6,573,680 (2,700,469)
------------ ------------ ----------- ------------
Distributions to shareholders:
From net investment income (16,288,897) (3,377,829) (2,782,365) (3,147,340)
From net realized gains -- -- (4,639) (108,666)
------------ ------------ ----------- ------------
Total distributions (16,288,897) (3,377,829) (2,787,004) (3,256,006)
------------ ------------ ----------- ------------
Capital share transactions:
Proceeds from shares sold 297,387,013 260,385,003 2,822,896 15,326,306
Payments for shares redeemed (238,529,846) (63,534,667) (17,111,368) (13,768,196)
Reinvested dividends 16,015,143 3,382,435 2,510,108 2,987,160
------------ ------------ ----------- ------------
Total capital share transactions 74,872,310 200,232,771 (11,778,364) 4,545,270
------------ ------------ ----------- ------------
Net increase (decrease) in net assets 74,872,310 200,232,771 (7,991,688) (1,411,205)
Net assets at beginning of period 224,439,302 24,206,531 58,304,889 59,716,094
------------ ------------ ----------- ------------
NET ASSETS AT END OF PERIOD** $299,311,612 $224,439,302 $ 50,313,201 $ 58,304,889
============ =========== =========== ============
CAPITAL TRANSACTIONS IN SHARES:
Sold 297,387,013 260,385,003 270,058 1,392,273
Redeemed (238,529,846) (63,534,667) (1,629,211) (1,297,341)
Reinvested dividends 16,015,143 3,382,435 239,479 280,888
------------ ------------ ----------- ------------
Net increase (decrease) in capital share transactions 74,872,310 200,232,771 (1,119,674) 375,820
============ =========== =========== ============
<FN>
** There was no undistributed net investment income for the Money
Market Fund or the California Intermediate Tax-Free Fund at October 31, 1995
nor at October 31, 1994.
</FN>
</TABLE>
The accompanying notes are an integral part of these financial statements.
FREMONT MUTUAL FUNDS
44
<PAGE> 45
This page has been left blank intentionally.
FREMONT MUTUAL FUNDS
45
<PAGE> 46
FREMONT MUTUAL FUNDS, INC.
Financial Highlights - October 31, 1995
- -------------------------------------------------------------------------------
<TABLE>
GLOBAL FUND
<CAPTION>
Years ended October 31
--------------------------------------------------
1995 1994 1993 1992 1991
---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C>
SELECTED PER SHARE DATA
for one share outstanding during the period
NET ASSET VALUE, BEGINNING OF PERIOD $13.13 $13.17 $11.52 $11.25 $9.93
------ ------ ------ ------ ------
INCOME FROM INVESTMENT OPERATIONS
Net investment income .40 .26 .32 .39 .47
Net realized and unrealized gain (loss) 1.24 (.03) 1.67 .40 1.34
------ ------ ------ ------ ------
Total investment operations 1.64 .23 1.99 0.79 1.81
------ ------ ------ ------ ------
LESS DISTRIBUTIONS
From net investment income (.50) (.14) (.26) (.40) (.45)
From net realized gains (.03) (.13) (.08) (.11) (.04)
Return of capital -- -- -- (.01) --
------ ------ ------ ------ ------
Total distributions (.53) (.27) (.34) (.52) (.49)
------ ------ ------ ------ ------
NET ASSET VALUE, END OF PERIOD $14.24 $13.13 $13.17 $11.52 $11.25
====== ====== ====== ====== ======
TOTAL RETURN 12.78% 1.74% 17.51% 7.10% 18.38%
RATIOS AND SUPPLEMENTAL DATA
Net assets, end of period (000s omitted) $482,355 $453,623 $186,325 $101,839 $74,502
Ratio of expenses to average net assets .88% .95% .99% 1.09% 1.12%
Ratio of net investment income to average net assets 2.98% 2.47% 2.89% 3.41% 4.34%
Portfolio Turnover Rate 83% 52% 40% 50% 81%
</TABLE>
<TABLE>
INTERNATIONAL GROWTH FUND
<CAPTION>
Year Period from
Ended March 1, 1994 to
October 31, 1995 October 31, 1994
---------------- ----------------
<S> <C> <C>
SELECTED PER SHARE DATA
for one share outstanding during the period
NET ASSET VALUE, BEGINNING OF PERIOD $9.79 $9.57
----- -----
INCOME FROM INVESTMENT OPERATIONS
Net investment income .10 .02
Net realized and unrealized gain (loss) (.09) .20
----- -----
Total investment operations .01 .22
----- -----
LESS DISTRIBUTIONS
From net investment income (.08) --
From net realized gains -- --
----- -----
Total distributions (.08) --
----- -----
NET ASSET VALUE, END OF PERIOD $9.72 $9.79
===== =====
TOTAL RETURN 0.13% 3.44%*
RATIOS AND SUPPLEMENTAL DATA
Net assets, end of period (000s omitted) $32,156 $29,725
Ratio of expenses to average net assets 1.50% 1.50%*
Ratio of net investment income to average net assets 1.19% .35%*
Portfolio Turnover Rate 32% 44%*
<FN>
*Annualized
</FN>
</TABLE>
The accompanying notes are an integral part of these financial statements.
FREMONT MUTUAL FUNDS
46
<PAGE> 47
FREMONT MUTUAL FUNDS, INC.
Financial Highlights - October 31, 1995
<TABLE>
- ---------------------------------------------------------------------------------------------------------------------------
INTERNATIONAL SMALL CAP FUND
<CAPTION>
Year Period from
Ended June 30, 1994 to
October 31, 1995 October 31, 1994
---------------- ----------------
<S> <C> <C>
SELECTED PER SHARE DATA
for one share outstanding during the period
NET ASSET VALUE, BEGINNING OF PERIOD $9.86 $10.00
------- -------
INCOME FROM INVESTMENT OPERATIONS
Net investment income (loss)(a) .10 (.01)
Net realized and unrealized loss (.88) (.13)
------- -------
Total investment operations (.78) (.14)
------- -------
LESS DISTRIBUTIONS
From net investment income (.08) --
From net realized gains -- --
------- -------
Total distributions (.08) --
------- -------
NET ASSET VALUE, END OF PERIOD $9.00 $9.86
======= =======
TOTAL RETURN # -7.96% -4.15%*
RATIOS AND SUPPLEMENTAL DATA
Net assets, end of period (000s omitted) $4,245 $1,768
Ratio of expenses to average net assets (a) 2.06% 2.50%*
Ratio of net investment income (loss) to average net assets (a) 1.67% -.28%*
Portfolio Turnover Rate 96% --
<FN>
*Annualized
(a) Management fees have been voluntarily waived for the period February 1, 1995 to October 31, 1995. If fees had been charged
fully, net investment income per share, ratio of expenses to average net assets and ratio of net investment income to average
net assets would have been $.07, 2.50% and 1.23%, respectively, for the year ended October 31, 1995.
# Total return would have been lower had the advisor not waived expenses.
</FN>
</TABLE>
<TABLE>
U.S. MICRO-CAP FUND
<CAPTION>
Year Period from
Ended June 30, 1994 to
October 31, 1995 October 31, 1994
---------------- ----------------
<S> <C> <C>
SELECTED PER SHARE DATA
for one share outstanding during the period
NET ASSET VALUE, BEGINNING OF PERIOD $10.34 $10.00
------ ------
INCOME FROM INVESTMENT OPERATIONS
Net investment income (loss) (a) (.05) .02
Net realized and unrealized gain 4.05 .34
------ ------
Total investment operations 4.00 .36
------ ------
LESS DISTRIBUTIONS
From net investment income -- (.02)
From net realized gains -- --
------ ------
Total distributions -- (.02)
------ ------
NET ASSET VALUE, END OF PERIOD $14.34 $10.34
====== =======
TOTAL RETURN # 38.68% 10.69%*
RATIOS AND SUPPLEMENTAL DATA
Net assets, end of period (000s omitted) $7,792 $2,052
Ratio of expenses to average net assets (a) 2.04% 2.50%*
Ratio of net investment income (loss) to average net assets (a) -.67% .68%*
Portfolio Turnover Rate 144% 129%*
<FN>
*Annualized
(a) Management fees have been voluntarily waived for the period February 1, 1995 to October 31, 1995. If fees had been charged
fully, net investment income per share, ratio of expenses to average net assets and ratio of net investment income to average
net assets would have been - $.08, 2.50% and -1.13%, respectively, for the year ended October 31, 1995.
# Total return would have been lower had the advisor not waived expenses.
</FN>
</TABLE>
The accompanying notes are an integral part of these financial statements.
FREMONT MUTUAL FUNDS
47
<PAGE> 48
FREMONT MUTUAL FUNDS, INC.
Financial Highlights - October 31, 1995
- --------------------------------------------------------------------------------
<TABLE>
GROWTH FUND
<CAPTION>
Years ended October 31 Period from
------------------------- August 14, 1992
1995 1994 1993 to October 31, 1992
---- ---- ---- -------------------
<S> <C> <C> <C> <C>
SELECTED PER SHARE DATA
for one share outstanding during the period
NET ASSET VALUE, BEGINNING OF PERIOD $10.46 $11.25 $10.08 $ 9.92
------ ------ ------ -------
INCOME FROM INVESTMENT OPERATIONS
Net investment income(a) .13 .21 .13 .02
Net realized and unrealized gain (loss) 2.74 (.02) 1.16 .18
------ ------ ------ -------
Total investment operations 2.87 .19 1.29 .20
------ ------ ------ -------
LESS DISTRIBUTIONS
From net investment income (.17) (.18) (.12) (.04)
From net realized gains (.10) (.80) -- --
------ ------ ------ -------
Total distributions (.27) (.98) (.12) (.04)
------ ------ ------ -------
NET ASSET VALUE, END OF PERIOD $13.06 $10.46 $11.25 $10.08
====== ====== ====== =======
TOTAL RETURN # 28.12% 1.72% 12.80% 9.35%*
RATIOS AND SUPPLEMENTAL DATA
Net assets, end of period (000s omitted) $59,632 $27,244 $42,306 $32,388
Ratio of expenses to average net assets(a) .97% .94% .87% .94%*
Ratio of net investment income to average net assets(a) 1.02% 1.31% 1.19% 1.08%*
Portfolio Turnover Rate 108% 55% 44% 49%*
<FN>
*Annualized
(a) Management and other expenses charged since the Fund's inception have been phased-in over time. If fees had been charged
fully, net investment income per share, ratio of expenses to average net assets, and ratio of net investment income to
average net assets would have been $.12, 1.01% and .98%, respectively, for the year ended October 31, 1995; $.19, 1.08% and
1.17%, respectively, for the year ended October 31, 1994; $.11, 1.02% and 1.04%, respectively, for the year ended October 31,
1993; and $.02, 1.18% and 0.84%, respectively, for the period from August 14, 1992 to October 31, 1992.
# Total return would have been lower had the advisor not waived expenses.
</FN>
</TABLE>
<TABLE>
BOND FUND
<CAPTION>
Years ended October 31 Period from
---------------------------- April 30, 1993
1995 1994 to October 31, 1993
---- ---- -------------------
<S> <C> <C> <C>
SELECTED PER SHARE DATA
for one share outstanding during the period
NET ASSET VALUE, BEGINNING OF PERIOD $9.29 $10.27 $10.04
------ ------ -------
INCOME FROM INVESTMENT OPERATIONS
Net investment income(a) .65 .53 .27
Net realized and unrealized gain (loss) .83 (.98) .24
------ ------ -------
Total investment operations 1.48 (.45) .51
------ ------ -------
LESS DISTRIBUTIONS
From net investment income (.64) (.53) (.27)
From net realized gains -- -- (.01)
------ ------ -------
Total distributions (.64) (.53) (0.28)
------ ------ -------
NET ASSET VALUE, END OF PERIOD $10.13 $9.29 $10.27
====== ====== =======
TOTAL RETURN # 16.49% -4.42% 10.21%*
RATIOS AND SUPPLEMENTAL DATA
Net assets, end of period (000s omitted) $86,343 $64,244 $11,738
Ratio of expenses to average net assets(a) .60% .66% .50%*
Ratio of net investment income to average net assets(a) 6.69% 5.76% 5.35%*
Portfolio Turnover Rate 21% 205% 13%*
<FN>
*Annualized
(a) Management and other expenses charged since the Fund's inception have been phased in over time. If fees had been charged
fully, net investment income per share, ratio of expenses to average net assets and ratio of net investment income to average
net assets would have been $.64, .75% and 6.54%, respectively, for the year ended October 31, 1995; $.50, 1.04%, and
5.38%, respectively, for the year ended October 30, 1994; and $.23, 1.23% and 4.62%, respectively, for the period ended
October 31, 1993.
# Total return would have been lower had the advisor not waived expenses.
</FN>
</TABLE>
The accompanying notes are an integral part of these financial statements.
FREMONT MUTUAL FUNDS
48
<PAGE> 49
FREMONT MUTUAL FUNDS, INC.
Financial Highlights - October 31, 1995
- -------------------------------------------------------------------------------
<TABLE>
MONEY MARKET FUND
<CAPTION>
Years ended October 31
-----------------------------------------------
1995 1994 1993 1992 1991
----- ----- ----- ----- ----
<S> <C> <C> <C> <C> <C>
SELECTED PER SHARE DATA
for one share outstanding during the period
NET ASSET VALUE, BEGINNING OF PERIOD $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
-------- -------- ------- ------- -------
INCOME FROM INVESTMENT OPERATIONS
Net investment income(a) .06 .03 .03 .04 .06
-------- -------- ------- ------- -------
Total investment operations .06 .03 .03 .04 .06
-------- -------- ------- ------- -------
LESS DISTRIBUTIONS
From net investment income (.06) (.03) (.03) (.04) (.06)
-------- -------- ------- ------- -------
Total distributions (.06) (.03) (.03) (.04) (.06)
-------- -------- ------- ------- -------
NET ASSET VALUE, END OF PERIOD $1.00 $1.00 $1.00 $1.00 $1.00
======== ======== ======= ======= =======
TOTAL RETURN # 5.84% 3.49% 2.66% 3.73% 6.51%
RATIOS AND SUPPLEMENTAL DATA
Net assets, end of period (000s omitted) $299,312 $224,439 $24,207 $31,832 $33,814
Ratio of expenses to average net assets(a) .30% .46% .67% .70% .51%
Ratio of net investment income to average net assets(a) 5.70% 4.02% 2.62% 3.70% 6.44%
<FN>
(a) Administrative fees have been voluntarily waived for the period from April 1, 1990 to October 31, 1995. If fees had
been charged fully, net investment income per share, ratio of expenses to average net assets and ratio of net investment
income to average net assets would have been $.06, .45% and 5.55%, respectively, for the year ended October 31, 1995; $.03,
.61% and 3.87%, respectively, for the year ended October 31, 1994; $.03, .82% and 2.47%, respectively, for the year ended
October 31, 1993; $.04, .85% and 3.55%, respectively, for the year ended October 31, 1992; and $.06, .66% and 6.29%,
respectively, for the year ended October 31, 1991.
# Total return would have been lower had the advisor not waived expenses.
</FN>
</TABLE>
<TABLE>
CALIFORNIA INTERMEDIATE
TAX-FREE FUND
<CAPTION>
Years ended October 31 Period from
----------------------------- November 16, 1990
1995 1994 1993 1992 to October 31, 1991
---- ---- ---- ---- --------------------
<S> <C> <C> <C> <C> <C>
SELECTED PER SHARE DATA
for one share outstanding during the period
NET ASSET VALUE, BEGINNING OF PERIOD $ 10.13 $ 11.10 $ 10.55 $ 10.3 $ 10.11
------- ------- ------- ------- --------
INCOME FROM INVESTMENT OPERATIONS
Net investment income(a) .53 .53 .55 .57 .58
Net realized and unrealized gain (loss) .73 (.97) .62 .19 .34
------- ------- ------- ------- --------
Total investment operations 1.26 (.44) 1.17 .76 .92
------- ------- ------- ------- --------
LESS DISTRIBUTIONS
From net investment income (.53) (.53) (.55) (.57) (.58)
From net realized gains -- -- (.07) (.03) (.06)
------- ------- ------- ------- --------
Total distributions (.53) (.53) (.62) (.60) (.64)
------- ------- ------- ------- --------
NET ASSET VALUE, END OF PERIOD $ 10.86 $ 10.13 $ 11.10 $ 10.55 $ 10.39
======= ======= ======= ======== ========
TOTAL RETURN # 12.77% -3.94% 11.37% 7.37% 9.78%*
RATIOS AND SUPPLEMENTAL DATA
Net assets, end of period (000s omitted) $50,313 $58,305 $59,716 $ 44,305 $ 33,572
Ratio of expenses to average net assets(a) .50% .51% .50% .54% .36%*
Ratio of net investment income to average net assets(a) 5.08% 4.94% 5.05% 5.38% 5.88%*
Portfolio Turnover Rate 18% 21% 26% 18% 41%*
<FN>
*Annualized
(a) Management and other expenses charged since the Fund's inception have been phased-in over time. If fees had been charged
fully, net investment income per share, ratio of expenses to average net assets, and ratio of net investment income to average
net assets would have been $.51, .72% and 4.86%, respectively, for the year ended October 31, 1995; $.51, .71% and 4.74%,
respectively, for the year ended October 31, 1994; $.53, .71% and 4.84%, respectively, for the year ended October 31, 1993; and
$.54, .83% and 5.09%, respectively, for the year ended October 31, 1992; and $.53, .88% and 5.36%, respectively, for the
period November 16, 1990 to October 31, 1991.
# Total return would have been lower had the advisor not waived expenses.
</FN>
</TABLE>
The accompanying notes are an integral part of these financial statements.
FREMONT MUTUAL FUNDS
49
<PAGE> 50
This page has been left blank intentionally.
FREMONT MUTUAL FUNDS
50
<PAGE> 51
FREMONT MUTUAL FUNDS, INC.
Notes to Financial Statements - October 31, 1995
- --------------------------------------------------------------------------------
1.SIGNIFICANT ACCOUNTING POLICIES
Fremont Mutual Funds, Inc. (the Corporation) is an open-end, diversified
investment company authorized to issue ten billion shares of $.0001 par value
capital stock. These shares are currently offered in eight series:
o the FREMONT GLOBAL FUND
o the FREMONT INTERNATIONAL GROWTH FUND
o the FREMONT INTERNATIONAL SMALL CAP FUND
o the FREMONT U.S. MICRO-CAP FUND
o the FREMONT GROWTH FUND
o the FREMONT BOND FUND
o the FREMONT MONEY MARKET FUND
o the FREMONT CALIFORNIA INTERMEDIATE TAX-FREE FUND
(the California Intermediate Tax-Free Fund is available only
to residents of Arizona, California, Colorado, Nevada, New Mexico,
Oregon, Texas, Utah and Washington)
Each of the Funds maintains a totally separate investment portfolio.
Significant accounting policies followed by the Funds are summarized below.
The policies are in conformity with generally accepted accounting principles
for investment companies.
Several funds were offered on a private placement basis to qualified
investors prior to their registration for sale under the Securities Act of 1933
and subsequent offering to the general public. The funds and their
respective registration dates are as follows :
Registration Date Under
-----------------------------------------
Investment Company Securities Act
Act of 1940 of 1933
------------------ ----------------
Fund
----
International Growth February 1, 1994 March 1, 1994
Growth May 11, 1992 August 14, 1992
Bond March 1, 1993 April 30, 1993
California Tax-Free July 2, 1990 November 16, 1990
Because the dates on which the shares were offered for public sale do not
coincide with the dates these funds began operations, the Financial Highlights
contained in this report for these funds reflect information only from public
offer date as required by the Securities and Exchange Commission.
A. SECURITY VALUATIONS
Investments, including options, are stated at value based on recorded
closing sales on a national securities exchange or, in the absence of a
recorded sale, at the mean between the last reported bid and asked prices
or at fair value as determined by the Board of Directors. Short-term notes
and similar securities are included in investments at amortized cost, which
approximates value. Securities which are primarily traded on foreign
exchanges are generally valued at the preceding closing values of such
securities on their respective exchanges or the most recent price available
where no closing value is available.
Securities in the Money Market Fund have a remaining maturity of not
more than 397 days and its entire portfolio has a weighted average maturity
of not more than 90 days. As such, all of the Fund's securities are valued
at amortized cost, which approximates value. If the Fund's portfolio had a
remaining weighted average maturity of greater than 90 days the portfolio
would be stated at value based on recorded closing sales on a national
securities exchange or, in the absence of a recorded sale, at the mean
between the bid and asked prices.
B. SECURITY TRANSACTIONS
Security transactions are accounted for as of trade date. Realized
gains and losses on security transactions are determined on the basis of
specific identification for both financial statement and federal income tax
purposes.
C. INVESTMENT INCOME, EXPENSES AND DISTRIBUTIONS
Dividends are recorded on the ex-dividend date, except that certain
dividends from foreign securities in the Global Fund, the International
Growth Fund and the International Small Cap Fund are recorded when the Fund
is informed of the ex-dividend date. Interest income and estimated expenses
are accrued daily. Bond discount and premium are amortized as required by
the Internal Revenue Code. Distributions to shareholders are recorded on
the ex-dividend date.
FREMONT MUTUAL FUNDS
51
<PAGE> 52
FREMONT MUTUAL FUNDS, INC.
Notes to Financial Statements - October 31, 1995
- --------------------------------------------------------------------------------
D. EXPENSE ALLOCATION
The Corporation accounts for the assets of each Fund separately and
allocates general expenses of the Corporation to each Fund based upon the
relative net assets of each Fund or the nature of the services performed
and their applicability to each Fund.
E. INCOME TAXES
The Funds' policy is to comply with the requirements of the Internal
Revenue Code applicable to regulated investment companies and to
distribute all taxable income and net capital gains, if any, to
shareholders. Therefore, no income tax provision is required. Each Fund
is treated as a separate entity in the determination of compliance with
the Internal Revenue Code and distributes taxable income and net realized
gains, if any, in accordance with schedules described in their respective
Prospectuses. The portfolio of the California Intermediate Tax-Free Fund
is composed solely of issues that qualify for tax-exempt status for
both Federal and State of California income tax purposes.
Income dividends and capital gain distributions paid to shareholders
are determined in accordance with income tax regulations which may differ
from generally accepted accounting principles and, therefore, may differ
from the information presented in the financial statements.These
differences are generally referred to as "book/tax" differences and are
primarily due to differing treatments for foreign currency transactions,
losses deferred due to wash sale rules, classification of gains/losses
related to paydowns and certain futures and options transactions.
Permanent book/tax differences causing payments to shareholders of
income dividends which are in excess of the net investment income
reported in the financial statements will result in reclassification of
such excess to paid in capital from undistributed net investment income.
Temporary book/tax differences, which will reverse in subsequent periods,
will not be reclassified and will remain in undistributed net investment
income. Any taxable income or gain remaining at fiscal year end is
distributed in the following year.
For Federal income tax purposes, certain funds have capital loss
carryovers at October 31, 1995. Capital loss carryovers result when a
fund has net capital losses during a tax year. These are carried over to
subsequent years and may reduce distributions of realized gains in those
years. Unused capital loss carryovers expire in eight years. The
following funds have capital loss carryovers at October 31, 1995 which
expire in the years indicated.
<TABLE>
<CAPTION>
Fund Amount Expires in
---- ----------- ----------
<S> <C> <C>
International Growth $ 1,334,365 2002
948,173 2003
International Small Cap 21,571 2003
</TABLE>
Until such capital loss carryovers are offset or expire, it is unlikely
that the Board of Directors will authorize a distribution of any net
realized gains.
F. FOREIGN CURRENCY TRANSLATION
The market values of foreign securities, currency holdings, and other
assets and liabilities of the Global Fund, the International Growth Fund,
the International Small Cap Fund and the Bond Fund are translated to U.S.
dollars based on the daily exchange rates. Purchases and sales of
securities, income and expenses are translated at the exchange rate on
the transaction date. Income and withholding taxes are translated at
prevailing exchange rates when accrued or incurred.
For those Funds which are allowed by the terms of their respective
prospectuses to invest in securities and other transactions denominated
in foreign currencies, currency gain(loss) will occur when such
securities and transactions are translated into U.S. dollars. Such Funds
have adopted Statement of Position (SOP) 93-4: Foreign Currency
Accounting and Financial Statement Presentation for Investment Companies
effective November 1, 1993. The key provisions of the SOP and its impact
on the financial statements are summarized below.
Certain transactions which result in realized currency gain(loss) are
reported on the Statements of Operations as Realized Gain(Loss) from
Foreign Currency Transactions. These are: currency gain(loss) from the
sale or maturity of forward currency contracts and from the disposition
of foreign currency; and the realization of currency fluctuations between
trade and settlement dates on security transactions and between accrual
and receipt dates on net investment income.
Realized currency gain(loss) from the sale, maturity or disposition of
foreign securities is not separately reported from the economic or market
component of the gain(loss) and is included under the caption Realized
Gain(Loss) from Investments. Activity related to foreign currency
futures and options on foreign currency is, likewise, reported under this
heading, as these instruments are used to hedge the foreign currency
risks associated with investing in foreign securities. Consistent with
the method of reporting realized currency gain(loss), unrealized currency
gain(loss) on investments is not separately reported from the underlying
economic or market component, but included under the caption Net
Unrealized Appreciation (Depreciation) on Investments. Unrealized
currency gain(loss) on other net assets is reported under Net Unrealized
Appreciation (Depreciation) on Translation of Assets and Liabilities in
Foreign Currencies.
FREMONT MUTUAL FUNDS
52
<PAGE> 53
FREMONT MUTUAL FUNDS, INC.
Notes to Financial Statements - October 31, 1995
- --------------------------------------------------------------------------------
G. FORWARD FOREIGN CURRENCY CONTRACTS
A forward foreign currency contract is an obligation to purchase or
sell a currency against another currency at a future date and price as
agreed upon by the parties. These contracts are traded over-the-counter
and not on organized commodities or securities exchanges. Losses may
arise due to changes in the value of the foreign currencies or if the
counterparty does not perform under the contract.
The Funds may and do use forward foreign currency contracts to facilitate
the settlement of foreign securities. A commitment by a Fund to purchase
a currency forward allows the Fund to have the local currency on hand to
settle foreign security purchases on the payment date. Likewise, a
commitment to sell a currency forward allows the Fund to take the foreign
currency proceeds from the sale of foreign securities and exchange it for
U.S. dollars at a predetermined price.
In addition, the Global Fund and the Bond Fund use such contracts to
manage their respective currency exposure. Contracts to receive generally
are used to acquire exposure to foreign currencies, while contracts to
deliver are used to hedge a fund's investments against currency
fluctuations. A contract to receive or deliver can also be used to
offset a previous contract.
The market risk involved in these contracts is in excess of the
amounts reflected in the Funds' Statements of Assets and Liabilities
since only the change in the underlying values is reflected (as an asset
where there is appreciation or as a liability if depreciated) and not the
actual underlying values. At October 31, 1995 the underlying values for
open foreign currency contracts were as follows:
<TABLE>
<CAPTION>
NET UNREALIZED
SETTLEMENT TO RECEIVE INITIAL CURRENT APPRECIATION
DATE (TO DELIVER) VALUE VALUE (DEPRECIATION)
---------- ------------- ------------ ----------- -------------
<S> <C> <C> <C> <C> <C>
Global Fund 11/16/95 NLG 5,036,938 $ 3,164,899 $ 3,188,944 $ 24,045
11/01/95 DM (1,562,850) (1,116,640) (1,109,860) 6,780
------------
30,825
============
Bond Fund 11/30/95 DM (6,116,000) $(4,331,123) $(4,348,692) $ (17,569)
12/08/95 DM (591,840) (416,789) (420,987) (4,198)
-------------
$ (21,767)
=============
</TABLE>
DM - Deutschemark, NLG - Netherlands Gilder
H. FUTURES
A futures contract is an agreement between two parties to buy or sell
a security or financial interest at a set price on a future date and is
standardized and exchange-traded. Upon entering into such a contract, the
purchaser is required to pledge to the broker an amount of cash or
securities equal to the minimum "initial margin" requirements of the
exchange on which the contract is traded. Pursuant to the contract, the
purchaser agrees to receive from or pay to the broker an amount of cash
equal to the daily fluctuation in value of the contract. Such receipts or
payments are known as "variation margin" and are recorded by the purchaser
as unrealized gains or losses. When the contract is closed, the purchaser
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 Funds use futures contracts to hedge foreign currency and
interest rate risks.
At October 31, 1995, the following Funds had futures contracts
outstanding:
<TABLE>
<CAPTION>
NET
CONTRACTS UNREALIZED
TO BUY EXPIRATION INITIAL CURRENT APPRECIATION
(TO SELL) DATE VALUE VALUE (DEPRECIATION)
--------- ---------- ------- ------- -------------
<S> <C> <C> <C> <C> <C>
Global Fund
-----------
Deutschemark (707) Dec 95 $(60,111,967) $(62,905,325) $ (2,793,358)
============
Bond Fund
---------
5 yr. U.S. Treasury Note 100 Dec 95 $ 10,720,156 $ 10,832,812 $ 112,656
10 yr. U.S. Treasury Note 175 Dec 95 19,288,906 19,517,969 229,063
30 yr. U.S. Treasury Bond 70 Dec 95 7,940,625 8,194,375 253,750
10 yr. Federal Republic of Germany Bond 40 Dec 95 DM 9,474,000 DM 9,663,000* 127,983
------------
$ 723,452
============
<FN>
DM-Deutschemark
* The current value of these contracts in U.S. dollars is $6,862,195.
</FN>
</TABLE>
At October 31, 1995, $2,000,000 and $660,000 par value of U.S. Treasury
Bills were held by brokers to satisfy the initial margin requirements
related to these contracts for the Global Fund and the Bond Fund,
respectively.
FREMONT MUTUAL FUNDS
53
<PAGE> 54
FREMONT MUTUAL FUNDS, INC.
Notes to Financial Statements - October 31, 1995
- -------------------------------------------------------------------------------
I. SECURITIES LENDING
All the Funds are authorized to make loans of their portfolio
securities to broker-dealers or to other institutional investors up to
33-1/3% of their respective net assets. The borrower must maintain
with the Funds' custodian collateral consisting of cash, cash
equivalents or U.S. Government securities equal to at least 100% of
the value of the borrowed securities, plus any accrued but unpaid
distributions. The collateral is invested in a money market fund that
meets the criteria of Section 2(a)-7 of the 1940 Act.
The Funds receive a portion of the income earned on the collateral.
For the year ended October 31, 1995, transactions in securities
lending resulted in fee income to the Global, International Growth,
International Small Cap and Growth Funds of $82,438, $9,361, $244 and
$1,816, respectively.
At October 31, 1995, no Fund had securities out on loan.
2. TRANSACTIONS WITH AFFILIATES AND RELATED PARTIES
INVESTMENT ADVISOR
The Funds each have entered into an investment management agreement with
Fremont Investment Advisors, Inc. (the Advisor), a wholly owned subsidiary of
The Fremont Group, Inc. Under these agreements, the Advisor supervises and
implements each Fund's investment activities and provides administrative
services as necessary to conduct Fund business. For its advisory and
administrative services, the Advisor receives a fee based on the average daily
net assets of the Funds as described below.
<TABLE>
<CAPTION>
ADVISORY FEE ADMINISTRATIVE FEE
<S> <C> <C>
Global Fund .60% on all net assets .15% on all net assets
International Growth Fund 1.50% on all net assets --
International Small Cap Fund (*) 2.50% on first $30 million --
2.00% on next $70 million --
1.50% on balance over $100 million --
U.S. Micro-Cap Fund (*) 2.50% on first $30 million --
2.00% on next $70 million --
1.50% on balance over $100 million --
Growth Fund(*) .50% on all net assets .15% on all net assets
Bond Fund(*) .40% on all net assets .15% on all net assets
Money Market Fund(*) .30% on first $50 million .15% on all net assets
.20% on balance over $50 million
California Intermediate Tax-Free Fund(*) .40% on first $25 million .15% on all net assets
.35% on next $25 million
.30% on next $50 million
.25% on next $50 million
.20% on balance over $150 million
<FN>
(*) The Advisor has voluntarily waived some of its fees for these
Funds. All fees waived in the past will not be recouped in the future
and, as these waivers are voluntary, they may be changed in the future.
For the International Small Cap Fund and the U.S. Micro-Cap Fund,
effective February 1, 1995, the Advisor is voluntarily limiting the
advisory fee to a reduced rate of 1.98% of net assets.
For the Growth Fund, the Advisor waived the entire administrative fee
until June 26, 1992 when it began charging a voluntarily reduced
rate of 0.01% of net assets. This waiver was eliminated on April 1,
1995.
For the California Intermediate Tax-Free Fund, the Advisor has waived
part or all of the advisory and administrative fees at various times.
Currently, the advisory and administrative fees are charged at
voluntarily reduced rates of .30% and .005% of net assets, respectively.
FREMONT MUTUAL FUNDS
54
<PAGE> 55
FREMONT MUTUAL FUNDS, INC.
Notes to Financial Statements - October 31, 1995
- -----------------------------------------------------------------------------
For the Bond Fund, the Advisor waived its investment advisory fee
until March 1, 1994 when it began charging .25% of net assets. The
advisory fee remained at .25% until June 15, 1994 when it was charged
at the full rate of .40% of net assets. The administrative fee has
been waived in its entirety until further notice. In addition, the
Advisor had limited the other operating expenses of the Fund to 0.50%
of net assets until July 14, 1994 when the Fund began bearing all of
its own expenses.
For the Money Market Fund, the Advisor has waived the administrative
fee in its entirety since April 1, 1990.
</FN>
</TABLE>
Selected per share data and operating ratios have been disclosed both
before and after the impact of these various waivers and expense
limitations under each Fund's Financial Highlights table.
Under the terms of the Advisory agreements, the Advisor receives a single
management fee from the International Growth Fund, the International Small
Cap Fund, and the U.S. Micro-Cap Fund, and is obligated to pay all expenses
of these Funds except extraordinary expenses (as determined by a majority
of the disinterested directors) and interest, brokerage commissions, and
other transaction charges relating to the investing activities of
those Funds.
Each Fund is also required to comply with the limitations set forth in the
laws, regulations, and administrative interpretations of the states in
which it is registered. For the year ended October 31, 1995, no
reimbursements were required or made to any Fund by the Advisor to comply
with these limitations.
OTHER RELATED PARTIES
At October 31, 1995 The Fremont Group, Inc. and its affiliated companies
including their employee retirement plans, its principal shareholder,
Stephen D. Bechtel, Jr., and members of his family, including trusts, owned
directly or indirectly the following approximate percentages of the various
Funds:
<TABLE>
<CAPTION>
% of Shares
Outstanding
-----------
<S> <C>
Global Fund 65%
International Growth Fund 91%
International Small Cap Fund 21%
U.S. Micro-Cap Fund 31%
Growth Fund 71%
Bond Fund 92%
Money Market Fund 83%
California Intermediate Tax-Free Fund 63%
</TABLE>
Additionally, Morgan Grenfell Capital Management, Inc., subadvisor of the
U.S. Micro-Cap Fund, owned approximately 9% of the Fund. Certain officers
and/or directors of the Funds are also officers and/or directors of the
Advisor and/or The Fremont Group, Inc.
3. ORGANIZATION COSTS
Costs incurred by each Fund, if any, in connection with its organization
have been deferred and are amortized on a straight-line basis over a
period of five years (60 months).
4. PURCHASES AND SALES/MATURITIES OF INVESTMENT SECURITIES
Aggregate purchases and aggregate proceeds from sales and maturities of
securities for the year ended October 31, 1995 were as follows:
<TABLE>
<CAPTION>
Purchases Proceeds
--------- --------
<S> <C> <C>
LONG TERM SECURITIES EXCLUDING US GOVERNMENT SECURITIES:
Global Fund $375,014,303 $327,950,059
International Growth Fund 12,325,575 8,485,050
International Small Cap Fund 5,242,125 2,353,699
U.S. Micro-Cap Fund 8,565,687 4,411,818
Growth Fund 60,533,280 40,259,370
Bond Fund 16,907,058 9,337,949
California Intermediate Tax-Free Fund 9,455,820 19,021,435
LONG TERM US GOVERNMENT SECURITIES:
Global Fund $ 20,988,232 $ 25,498,348
Bond Fund 10,112,310 2,121,850
</TABLE>
FREMONT MUTUAL FUNDS
55
<PAGE> 56
FREMONT MUTUAL FUNDS, INC.
Notes to Financial Statements - October 31, 1995
---------------------------------------------------------------------------
Transactions in written put and call options for the year ended October 31,
1995 for the Bond Fund were as follows:
<TABLE>
<CAPTION>
Amount of Number of
Premiums Contracts
--------- ---------
<S> <C> <C>
Options outstanding at October 31, 1994 $20,013 50
Options sold 396,877 710
Options cancelled in closing purchase transactions -- --
Options expired prior to exercise (345,437) (620)
Options exercised (47,705) (70)
-------- -----
Options outstanding at October 31, 1995 $23,748 70
======== =====
</TABLE>
The following written options were outstanding at October 31, 1995:
<TABLE>
<CAPTION>
Number of Exercise Expiration
Name of Issuer Contracts Price Date Value
-------------- ---------- -------- ---------- -----
<S> <C> <C> <C> <C> <C>
Put Options: CBOT 30 yr. U.S.
Treasury Bond Futures 70 112 11/17/95 $2,188
CBOT -- Chicago Board of Trade
</TABLE>
The Bond Fund received premiums of $23,748 on these contracts and has an
unrealized gain of $21,560. The total notional value underlying these
contracts is $7,000,000.
5. PORTFOLIO CONCENTRATIONS
Although each Fund has a diversified investment portfolio, there are
certain investment concentrations of risk which may subject each Fund more
significantly to economic changes occurring in certain segments or
industries.
6. UNREALIZED APPRECIATION (DEPRECIATION) - TAX BASIS
At October 31, 1995, the cost of securities for Federal income tax purposes
and the gross aggregate unrealized appreciation and/or depreciation
based on that cost were as follows:
<TABLE>
<CAPTION>
Gross Aggregate Unrealized
--------------------------------------------
Cost Appreciation Depreciation Net
------------ ------------ ------------- -----------
<S> <C> <C> <C> <C>
Global Fund $436,028,883 $56,758,719 $ (10,411,381) $46,347,338
International Growth Fund 30,095,936 4,381,143 (2,321,607) 2,059,536
International Small Cap Fund 4,384,475 252,366 (468,938) (216,572)
U.S. Micro-Cap Fund 6,795,869 1,232,783 (290,023) 942,760
Growth Fund 50,189,029 9,921,703 (915,878) 9,005,825
Bond Fund 83,794,520 2,026,421 (693,184) 1,333,237
Money Market Fund 303,888,378 -- -- --
California Intermediate Tax-Free Fund 47,760,684 2,092,397 (199,726) 1,892,671
</TABLE>
FREMONT MUTUAL FUNDS
56
<TABLE> <S> <C>
<ARTICLE> 6
<CIK> 0000837389
<NAME> FREEMONT MUTUAL FUNDS, INC.
<SERIES>
<NUMBER> 1
<NAME> FREMONT GLOBAL FUND
<S> <C>
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<FISCAL-YEAR-END> OCT-31-1995
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<PERIOD-END> OCT-31-1995
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<INVESTMENTS-AT-VALUE> 482,376,221
<RECEIVABLES> 4,640,529
<ASSETS-OTHER> 53,938
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<TOTAL-ASSETS> 487,070,688
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<OTHER-ITEMS-LIABILITIES> 1,533,005
<TOTAL-LIABILITIES> 4,715,832
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<PAID-IN-CAPITAL-COMMON> 416,233,588
<SHARES-COMMON-STOCK> 33,873,265
<SHARES-COMMON-PRIOR> 34,548,453
<ACCUMULATED-NII-CURRENT> 2,004,174
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<NET-ASSETS> 482,354,856
<DIVIDEND-INCOME> 5,033,955
<INTEREST-INCOME> 12,543,616
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<EXPENSES-NET> 4,014,990
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</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<CIK> 0000837389
<NAME> FREMONT MUTUAL FUNDS, INC.
<SERIES>
<NUMBER> 2
<NAME> FREMONT MONEY MARKET FUND
<S> <C>
<PERIOD-TYPE> 12-MOS
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<PERIOD-START> NOV-01-1994
<PERIOD-END> OCT-31-1995
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<NET-INVESTMENT-INCOME> 16,288,897
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<NUMBER-OF-SHARES-SOLD> 297,387,013
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<PER-SHARE-NAV-BEGIN> 1.00
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</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<CIK> 0000837389
<NAME> FREMONT MUTUAL FUNDS, INC.
<SERIES>
<NUMBER> 3
<NAME> FREMONT CALIFORNIA INTERMEDIATE TAX-FREE FUND
<S> <C>
<PERIOD-TYPE> 12-MOS
<FISCAL-YEAR-END> OCT-31-1995
<PERIOD-START> NOV-01-1994
<PERIOD-END> OCT-31-1995
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<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 1,892,671
<NET-ASSETS> 50,313,201
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 3,057,222
<OTHER-INCOME> 0
<EXPENSES-NET> 274,857
<NET-INVESTMENT-INCOME> 2,782,365
<REALIZED-GAINS-CURRENT> 119,954
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<SHARES-REINVESTED> 239,479
<NET-CHANGE-IN-ASSETS> (7,991,688)
<ACCUMULATED-NII-PRIOR> 0
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<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 391,895
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<PER-SHARE-NAV-BEGIN> 10.13
<PER-SHARE-NII> .53
<PER-SHARE-GAIN-APPREC> .73
<PER-SHARE-DIVIDEND> .53
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<PER-SHARE-NAV-END> 10.86
<EXPENSE-RATIO> .50
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<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<CIK> 0000837389
<NAME> FREMONT MUTUAL FUNDS, INC.
<SERIES>
<NUMBER> 4
<NAME> FREMONT GROWTH FUND
<S> <C>
<PERIOD-TYPE> 12-MOS
<FISCAL-YEAR-END> OCT-31-1995
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<INTEREST-INCOME> 146,366
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<NET-INVESTMENT-INCOME> 398,651
<REALIZED-GAINS-CURRENT> 3,482,283
<APPREC-INCREASE-CURRENT> 6,445,736
<NET-CHANGE-FROM-OPS> 10,326,670
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<PER-SHARE-NII> .13
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</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<CIK> 0000837389
<NAME> FREMONT MUTUAL FUNDS, INC.
<SERIES>
<NUMBER> 5
<NAME> FREMONT BOND FUND
<S> <C>
<PERIOD-TYPE> 12-MOS
<FISCAL-YEAR-END> OCT-31-1995
<PERIOD-START> NOV-01-1994
<PERIOD-END> OCT-31-1995
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</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<CIK> 0000837389
<NAME> FREMONT MUTUAL FUNDS, INC.
<SERIES>
<NUMBER> 6
<NAME> FREMONT INTERNATIONAL GROWTH FUND
<S> <C>
<PERIOD-TYPE> 12-MOS
<FISCAL-YEAR-END> OCT-31-1995
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</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<CIK> 0000837389
<NAME> FREMONT MUTUAL FUNDS, INC.
<SERIES>
<NUMBER> 7
<NAME> FREMONT U.S. MICRO-CAP FUND
<S> <C>
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<TABLE> <S> <C>
<ARTICLE> 6
<CIK> 0000837389
<NAME> FREMONT MUTUAL FUNDS, INC.
<SERIES>
<NUMBER> 8
<NAME> FREMONT INTERNATIONAL SMALL CAP FUND
<S> <C>
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<NUMBER-OF-SHARES-SOLD> 308,867
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</TABLE>
