FREMONT MUTUAL FUNDS, INC.
SEMI-ANNUAL REPORT
[GRAPHIC OMITTED]
April 30, 1999
Fremont
Funds [LOGO]
<PAGE>
A message from Michael H. Kosich, President of Fremont Mutual Funds, Inc.
[PHOTO]
Mike Kisoch
Dear Fellow Shareholder,
In my introductory letter to the Fremont Funds 1998 Annual Report, I cautioned
against what I viewed as excessive investor pessimism caused by global economic
and financial market turmoil in third quarter 1998. At the time, equities
markets worldwide had declined sharply and the world as we know it appeared to
be jeopardized. All of our equities funds were under pressure in second half
fiscal 1998 (October 31), with our international equities funds and small
company domestic equities funds getting hit the hardest. We urged our
shareholders to be patient and pointed out that equities had survived far worse
economic calamities and gone on to deliver better long term investment returns
than any other asset class.
Shareholders did not have to wait long for their patience to be rewarded. We are
pleased to report that all of our equities funds posted positive returns in
first half fiscal 1999, with all but one gaining better than 10%. Special
recognition goes to Robert Kern and David Kern, Lead Portfolio Managers of the
Fremont U.S. Micro-Cap and U.S. Small Cap Funds. Both Funds delivered
exceptional absolute returns and outpaced their Russell 2000 Index benchmark by
wide margins.
While investment sentiment brightened dramatically in just six months--I must
caution shareholders about excessive optimism. As I write, the Dow Jones has
just broken through 11,000--just 24 trading days after eclipsing the historic
10,000 barrier. European equities markets are back at record levels and the long
dormant Japanese stock market has come roaring back to life. The emerging
markets have also staged breathtaking rallies. Just six months ago, the
investment "Chicken Littles" held center stage and had convinced many investors
that the sky was falling. Now market cheerleaders are in the spotlight, shouting
that the sky is the limit for stock prices.
Prudent investors will not listen to either. They know that there will be ups
and downs, generally when least expected. They don't let fear or greed influence
investment decisions. They recognize the simple fact that if history is a
prologue to the future, stocks will generate the kind of long term returns that
will help them achieve their financial goals.
In closing, we urge our shareholders to be prudent investors--to ignore dire
warnings of disaster and resist the sirens' calls of easy and unlimited profits.
Develop realistic long term financial objectives and continue to allow Fremont
Funds' experienced and talented portfolio managers help you achieve them.
Sincerely,
/s/ Michael H. Kosich
Michael H. Kosich
President
<PAGE>
- --------------------------------------------------------------------------------
TABLE OF CONTENTS
- --------------------------------------------------------------------------------
Fund Profiles and Letters to Shareholders
Fremont Global Fund........................................................... 2
Fremont International Growth Fund............................................. 4
Fremont International Small Cap Fund.......................................... 6
Fremont Emerging Markets Fund................................................. 8
Fremont U.S. Micro-Cap Fund.................................................. 10
Fremont U.S. Small Cap Fund.................................................. 12
Fremont Growth Fund.......................................................... 14
Fremont Real Estate Securities Fund.......................................... 16
Fremont Bond Fund............................................................ 18
Fremont Money Market Fund.................................................... 20
Fremont California Intermediate Tax-Free Fund................................ 22
Statements of Investments in Securities and Net Assets
Fremont Global Fund.......................................................... 24
Fremont International Growth Fund............................................ 34
Fremont International Small Cap Fund......................................... 36
Fremont Emerging Markets Fund................................................ 37
Fremont U.S. Micro-Cap Fund.................................................. 38
Fremont U.S. Small Cap Fund.................................................. 39
Fremont Growth Fund.......................................................... 40
Fremont Real Estate Securities Fund.......................................... 42
Fremont Bond Fund............................................................ 43
Fremont Money Market Fund.................................................... 46
Fremont California Intermediate Tax-Free Fund................................ 48
Notes to Statements of Investments in Securities and Net Assets,
Portfolio Abbreviations & Currency Abbreviations........................... 50
Country Diversification...................................................... 51
Combined Financial Statements
Statements of Assets and Liabilities......................................... 52
Statements of Operations..................................................... 56
Statements of Changes in Net Assets.......................................... 60
Financial Highlights......................................................... 64
Notes to Financial Statements................................................ 70
<PAGE>
- --------------------------------------------------------------------------------
FREMONT GLOBAL FUND
- --------------------------------------------------------------------------------
Fremont Asset Allocation Committee,
Portfolio Management Team
Fremont Investment Advisors, Inc.
[PHOTOS OMITTED]
David L. Redo, Robert J. Haddick, Alexandra Kinchen, Albert W. Kirschbaum, Peter
F. Landini, Andrew Pang
- ------------
FUND PROFILE
- ------------
Fremont Global Fund offers conservative investors a balanced approach to
global investing. The Fund management team understands the reward potential and
perhaps more importantly, the risks in global financial markets. Through country
diversification, prudent allocation between stocks, bonds and cash, and
disciplined securities selection, the Fund seeks to maximize total return
(including income and capital gains) while reducing risk by investing in
multiple categories of U.S. and foreign securities.
The Fund's portfolio management team employs a three-step investment
process. First, economic growth, inflation, and interest rate forecasts are
developed to identify those regions and individual countries offering the best
investment opportunities. Second, financial market data is examined to determine
the most advan- tageous mix of stocks, bonds and cash. Finally, the portfolio
managers select individual securities based on intensive quantitative and
fundamental analysis.
To Our Shareholders,
For the six months ended April 30, 1999, Fremont Global Fund gained 11.94%
compared to the Lipper Global Flexible Fund Average's 12.49% advance.
In the domestic equities portfolio, our growth bias worked well through
most of this reporting period. The large-cap growth segment, as represented by
the S&P 500 Index, grew nearly 25% in value over this six-month period. A large
portion of this gain was focused in the technology sector, where we were
over-weighted.
On the international equities side, our Japanese holdings excelled, as this
long dormant market finally snapped back to life. Our over-weighting in Europe
restrained returns, with most European markets sagging before regaining momentum
in March. U.S. fixed income investments disappointed as the persistently strong
economy reawakened inflationary concern. Internationally, we sat out the big
Japanese bond market rally, but were handsomely rewarded for maintaining our
positions in emerging markets.
At the close of this reporting period, the Fund had 40% of its assets in
U.S. equities, (a modest under-weighting versus the benchmark), 23% in
international equities, 35% in global fixed income, and 2% in cash.
The U.S. economy just keeps on rolling along. With no evidence of
inflation, the Federal Reserve is not likely to take short term interest rates
higher in the foreseeable future. However, unless the economy shows some signs
of slowing, we doubt interest rates will go much lower. So earnings, not
interest rates, will drive the stock market. Corporate earnings will likely be
much stronger than in 1998, and perhaps stronger than consensus estimates.
Unfortunately, with equities valuations already quite high, good earnings news
may already be baked into current prices. This leads us to believe the stock
market may lose some momentum in the year ahead.
The larger European economies have remained sluggish, as is reflected in
the weak Euro. The European Central Bank has responded with two interest rate
cuts, which should result in European GDP growth of around 2% in calendar 1999.
European stock markets have regained some momentum that should be sustained if
economic growth and corporate earnings live up to our expectations.
With the Nikkei 225 among 1999's best performing market indices, Japan has
been the big story this reporting period. Our exposure in Japan resulted from
finding some good values, particularly in the export sector, rather than from
any high degree of confidence in economic reform. We feel the same way today. We
think our Japanese holdings have good investment potential. We are however, far
from convinced that Japan has made, or will make any meaningful progress in
turning the economy around. For example, much is being made over the
restructuring of Japanese corporations. Within the last year, more than 500
restructurings have been announced, but to date, only about 25 have actually
occurred. With interest rates near zero, Japanese banks are giving money away.
But, consumers still aren't spending. The recent run-up in the Japanese stock
and bond markets has made ailing bank balance sheets look better. However, they
are still burdened by a world of bad debt. Our conclusion is that we can make
money in good Japanese stocks, but that the economic miracle investors appear to
be expecting is not about to materialize any time soon.
The U.S. bond market has been dull. We think it will remain so for the next
several quarters, with long bond yields in the 5.25% to 5.75% range. We passed
on Japanese bonds because of low yields and a higher than average budget deficit
in Japan than among other developed nations. We were frankly amazed that
Japanese bonds could make any progress at all, let alone advance the way they
did. We think this rally will prove shortlived.
Our patience with our Latin American bond investments paid off. Last year,
these bonds were among our worst performers, as Latin America was expected to be
the next emerging market domino to fall. We felt otherwise and have been more
than adequately rewarded for our contrary opinion. We were also happy with our
Korean holdings since the credit rating agencies have since brought Korea back
to investment grade.
Switching to the equity market, MCI Worldcom is a good example of the kind
of U.S. stocks we favor. This is really a global telecommunications company well
positioned in local, long distance, and data transmission (the internet) in the
U.S. and overseas. With 1999 earnings estimated at $1.97 per share versus 1998's
$0.83, we are projecting a five-year average annualized earnings growth rate of
31%, a remarkable growth rate for a company the size of MCI Worldcom. The stock
is trading at 45 times earnings, which appears rather rich. However, we view
this as a reasonable premium considering the S&P 500 is now trading at more than
30 times earnings, which are only projected to grow in single digits in the next
two years.
In closing, we will continue to make allocation and stock selection
decisions based on risk as well as reward potential in our effort to preserve
and enhance the assets you have entrusted to us.
Sincerely,
/s/ Dave Redo /s/ Pete Landini
/s/ Robert J. Haddick /s/ Alexandra Kinchen
/s/ Albert W. Kirschbaum /s/ Andrew Pang
Fremont Asset Allocation Committee
Portfolio Managers
- --------------------------------------------------------------------------------
GROWTH OF $10,000 (1)
[GRAPHIC OMITTED]
4/30/99
-------
S&P 500 INDEX $65,988
FREMONT GLOBAL FUND $28,209
SALOMON NON-US GOVT. BOND INDEX (CURRENCY HEDGED) $23,842
LEHMAN BROS. INTERMEDIATE GOVT./CORP. BOND INDEX $22,607
MSCI EAFE INDEX $18,489
AVERAGE ANNUAL RETURNS FOR PERIODS ENDED 4/30/99
1 YEAR 5 YEARS 10 YEARS SINCE INCEPTION (11/18/88)
- ----------------------------------------------------------
5.04% 11.58% 10.20% 10.44%
ANNUAL RETURNS
11/18/88-10/31/89* +13.71%
11/01/89-10/31/90 -2.64%
11/01/90-10/31/91 +18.38%
11/01/91-10/31/92 +7.10%
11/01/92-10/31/93 +17.51%
11/01/93-10/31/94 +1.74%
11/01/94-10/31/95 +12.78%
11/01/95-10/31/96 +13.72%
11/01/96-10/31/97 +13.01%
11/01/97-10/31/98 +3.62%
11/01/98-04/30/99* +11.94%
TOP TEN HOLDINGS
S&P 500 Futures,
240 Contracts, Exp. June `99 ............... 12.0%
Kingdom of Denmark, 7.000%, 11/15/07 ........ 1.2%
Deutschland Republic, 5.625%, 01/04/28 ...... 0.8%
Government of France, 8.500%, 10/25/19 ...... 0.8%
U.S. Treasury Note, 6.500%, 10/15/06 ........ 0.8%
Government of Sweden,
6.000%, 02/09/05 ........................... 0.8%
Caisse D'Amort Dette, 5.125%, 10/25/08 ...... 0.8%
U.S. Treasury Bond, 6.250%, 08/15/23 ........ 0.8%
United Mexican States, 11.500%, 05/15/26 .... 0.7%
Microsoft Corp. ............................. 0.7%
TOTAL ............................... 19.4%
* Unannualized (1) Assumes initial investment of $10,000 on inception date,
November 18, 1988. 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 Salomon Non-U.S. Government Bond Index
(currency hedged), the Lehman Bros. Intermediate Government/Corporate Bond
Index, or the Morgan Stanley Capital International EAFE Index.
- --------------------------------------------------------------------------------
FREMONT GLOBAL FUND GEOGRAPHIC DIVERSIFICATION AS OF 4/30/99
- --------------------------------------------------------------------------------
[GRAPHIC OMITTED]
Canada 2.8%
United States 62.5%
Emerging Markets Latin America 0.7%
Emerging Markets Other 0.6%
Europe 26.7%
Japan 3.7%
Pacific Rim 3.0%
FREMONT MUTUAL FUNDS PAGES 2 AND 3
<PAGE>
- --------------------------------------------------------------------------------
FREMONT INTERNATIONAL GROWTH FUND
- --------------------------------------------------------------------------------
Lionel M. Sauvage, Portfolio Manager
Capital Guardian Trust Company
Portfolio Management Team
[PHOTOS OMITTED]
Lionel M. Sauvage, David I. Fisher, Nilly Sikorsky, Hartmut Giesecke, Nancy J.
Kyle, Robert Ronus, John McIlwraith, Rudolf M. Staehlin, Richard N. Havas
- ------------
FUND PROFILE
- ------------
Under the stewardship of Capital Guardian Trust Company (CGTC), the Fremont
International Growth Fund is a diversified portfolio of international equities
believed to have superior capital appreciation potential. CGTC's parent company,
The Capital Group Companies, has one of the investment industry's most
successful global intelligence networks.
CGTC employs a multiple portfolio manager system. Nine individual portfolio
managers and the collective research analyst team are each given a portion of
the portfolio's assets to manage. Each manager's style varies, however, they
have a unifying investment objective: superior long term returns versus the same
benchmark index. The entire portfolio is carefully monitored to ensure
sufficient regional and country diversification.
To Our Shareholders,
For the six months ended April 30, 1999, the Fremont International Growth
Fund returned 19.85% compared to the Morgan Stanley Capital International
Europe, Australia, and Far East (EAFE) Index's 15.28% gain.
We steadily increased our exposure to Japan throughout this six month
reporting period, and were rewarded when this long dormant stock market came to
life in 1999. We also benefited by taking some profits in Europe, where markets
stalled this Spring.
Although we have an equal weighting in Japan versus the EAFE benchmark, we
are materially over-weighted relative to our peer group, many of whom appear
convinced that no real economic progress is forthcoming and that the Tokyo rally
will be shortlived. We disagree.
For the first time since the early 80's, Japanese companies are welcoming
investment by American and European corporations. Goodyear will lead a
joint-venture including all of Sumitomo Rubber's non-Japanese operations and has
taken a 10% stake in the company. Renault has taken a 37% stake in ailing
Nissan. Ten years ago, you might have expected Sumitomo to buy Goodyear and
Nissan to be bailing out Renault. The Japanese are finally willing to let
foreign corporations help them by providing capital and management expertise.
Japan is restructuring internally as well, with a substantial number of
restructurings announced in the last year. Importantly, corporate acquirers can
now amortize good will over 40 years instead of just 5 years. This means deals
can now be done without penalizing acquiring companies' earnings.
A year ago Japanese banks had to pay a 150 basis point (1.5%) premium to
borrow money internationally. Today, they pay no premium at all, a clear signal
that the world's lenders believe the Japanese government's bank reform package
announced in the Fall of 1998 and implemented this March will be effective.
Traditionally, Japanese banks have owned huge positions in Japanese
corporations and vice versa. Investors have been concerned, and rightfully so,
that if the ailing banks had to liquidate these positions, Japanese corporate
stocks would plummet. Corporations will soon be allowed to use stock holdings
held in treasury and other companies' stocks for pension fund contributions.
This will provide a new home for these "cross-holdings."
If you look at the macro-economic numbers, there is little evidence of an
economic turnaround in Japan. But, that is looking at what is, not what will be.
We believe the Japanese corporate culture is changing, that some of the
government's economic reforms will work, and that the Japanese stock market can
sustain its momentum.
We are now modestly under-weighted in Europe, where we have been taking
profits in telecommunications stocks that are now fairly if not fully priced. We
are now focusing on more reasonably priced cyclicals, like engineering and
construction stocks, that have lagged the market.
Administratively, the introduction of the Euro on January 1, 1999 went
without a hitch, surprising many people who thought there would be problems.
However, the Euro has not been the strong currency that many anticipated,
declining substantially against the dollar through April. The Euro's weakness
reflects sluggish European economic growth. The European Central Bank cut
interest rates in January and April in an attempt to re-invigorate the regions'
economies. This is somewhat of a reversal in European monetary policy.
Previously, central banks had wanted the Euro to start out strong. But the newly
formed European Central Bank (ECB) yielded to a combination of weakness in
emerging markets, pressure from the Fed to relax liquidity conditions worldwide
and political pressure to boost growth. We believe these rate cuts will help
stimulate European economies and stock markets.
Let's return to the Land of the Rising Sun, for an illustration of the kind
of stock we currently favor. Jusco is Japan's largest retailer, owning
supermarkets, department stores, drug stores and specialty shops. Under a new
generation of family management, the company is in the process of restructuring
operations to enhance profitability rather than just increase sales and market
share. It is selling off money losing and marginally profitable assets. It is
cutting costs and expanding margins through improved inventory controls. Gross
margins have improved by 0.6%, which is a giant step forward for a company in
very low margin businesses like supermarkets and drug stores. We believe Jusco's
return on equity can double and that earnings can grow three or four fold in the
next 5-6 years.
Jusco is starting to look like an American retailer. Interestingly, we
visited WalMart recently and asked them if their plans for international
expansion included acquisitions. They said yes, and when Jusco's name came up,
they said it was the only Japanese retailer they liked. We are not suggesting
WalMart will make a bid for Jusco. We are simply encouraged that one of the
finest retailers in America has also recognized the favorable changes Jusco is
making.
In closing, we are pleased to have outperformed our EAFE benchmark and most
of our peer group during this reporting period. We remain dedicated to superior
long term performance.
Sincerely,
/s/ Lionel Sauvage
Lionel M. Sauvage and Capital Guardian Trust Company's Portfolio Counselors Team
- --------------------------------------------------------------------------------
GROWTH OF $10,000 (1)
[GRAPHIC OMITTED]
4/30/99
-------
MSCI EAFE INDEX $15,144
FREMONT INTERNATIONAL GROWTH FUND $13,248
AVERAGE ANNUAL RETURNS FOR PERIODS ENDED 4/30/99
1 YEAR 3 YEARS SINCE INCEPTION (3/1/94)
- --------------------------------------------
8.42% 6.51% 5.60%
ANNUAL RETURNS
03/01/94-10/31/94* +2.30%
11/01/94-10/31/95 +0.13%
11/01/95-10/31/96 +7.07%
11/01/96-10/31/97 -0.01%
11/01/97-10/31/98 +0.80%
11/01/98-04/30/99* +19.85%
TOP TEN HOLDINGS
Mannesmann AG ............................... 3.0%
Nokia Corp. AB, ADR ......................... 2.9%
Zeneca Group PLC ............................ 2.8%
Sony Corp. .................................. 2.0%
Tokyo Electron Ltd. ......................... 1.9%
Broken Hill Proprietary Co. Ltd. ............ 1.5%
Standard Chartered PLC ...................... 1.5%
Murata Manufacturing Co. Ltd. ............... 1.5%
Deutsche Telekom ............................ 1.4%
Barclays PLC ................................ 1.4%
TOTAL ............................... 19.9%
- --------------------------------------------------------------------------------
FREMONT INTERNATIONAL GROWTH FUND GEOGRAPHIC DIVERSIFICATION AS OF 4/30/99
- --------------------------------------------------------------------------------
[GRAPHIC OMITTED]
Canada 5.2%
United States 8.1%
Emerging Markets Latin America 2.3%
Emerging Markets Other 1.1%
Europe 51.3%
Japan 22.4%
Pacific Rim 9.6%
FREMONT MUTUAL FUNDS PAGES 4 AND 5
<PAGE>
- --------------------------------------------------------------------------------
FREMONT INTERNATIONAL SMALL CAP FUND
- --------------------------------------------------------------------------------
Bruce B. Bee
Portfolio Manager
Bee & Associates, Inc.
[PHOTO OMITTED]
Bruce B. Bee
- ------------
FUND PROFILE
- ------------
The Fremont International Small Cap Fund is a concentrated global portfolio
of small cap equities believed to be undervalued relative to growth prospects
and intrinsic value measurements.
Through intensive fundamental analysis and "kick the tires" research, Fund
management seeks to identify a few extraordinary small companies with the
potential to grow much larger. Value--as determined by traditional measurements
like price/earnings, price/cash flow and price/book value ratios, cross border
comparisons, and the analysis of transactions within the target company's
industry--is a primary consideration in the stock selection process.
Founded in 1989, sub advisor Bee & Associates, Inc. manages money for
prestigious institutional clients including endowments, foundations and several
Fortune 500 pension plans.
To Our Shareholders,
For the six months ended April 30, 1999, the Fremont International Small
Cap Fund returned 12.04% compared to a gain of 16.13% for the Morgan Stanley
Capital International, Europe, Australia and Far East (EAFE) Small Cap Index.
We are pleased with the portfolio's absolute return during this reporting
period, especially considering the negative impact the weak Euro had on
portfolio performance. From its introduction on January 1, 1999 through the end
of April, the Euro was off 9.5% versus the dollar. Because we don't hedge
currencies, we had to make up this difference in our European investments before
moving into positive performance territory in dollar terms. If calculated in
Euro terms, the portfolio's return would have been significantly higher.
Our investment successes came from across the industry group spectrum--a
reflection of our stock picking discipline. We had good performers in sectors
ranging from technology to more mundane industries like advertising
distribution. Our disappointments were also stock specific. We were hurt by an
investment in a European specialty chemical company, which despite decent
operating results, sold off along with commodity oriented chemical producers.
Our investment in a German building materials company retreated, as construction
activity fell. A Canadian furniture manufacturer also declined during this
reporting period.
As is reflected in the performance of our portfolio and international small
cap indices, small cap stocks have been getting more favorable investor
attention over the last six months. During the prior reporting period, the
majority of our holdings were meeting or beating our earnings expectations, but
no one seemed to notice or care. During first half fiscal 1999, good earnings
gains were rewarded.
In recent months, we have seen what may be the beginning of a reversal in
trend in global equities markets. Large cap growth stocks, which had been market
leaders throughout the world over the last five years, have stalled, and value
stocks and small cap stocks have started to improve. It may be too early to call
a major turn in small caps--it could simply be a bounce in what has been an
extremely oversold asset class. But then again, by the time the consensus
predicts a major turn, it has generally already occurred.
The excellent performance of European small cap stocks surprised most
market observers. With the creation of "Euroland", all the activity was expected
to be in large cap stocks, as institutional investors repositioned portfolios to
try to mirror the new pan-European market indices. For example, a money manager
in Holland would be liquidating domestic holdings and scrambling to identify and
buy the best "blue chips" throughout the continent. Small cap stocks were
expected to come under even more selling pressure with this portfolio
housecleaning. We have seen a lot of this kind of portfolio restructuring, but
small caps have either not been sold, or have been quickly absorbed in the
marketplace.
Israeli-based Tecnomatix provides a good illustration of our investment
discipline. We have a strong bias toward any firm that is helping other
companies become more productive, efficient and profitable. Tecnomatix is one of
just two CAPE (Computer Aided Production Engineering) companies in the world.
Its software helps companies design and test the efficiency of manufacturing and
maintenance facility layouts. Almost 70% of Tecnomatix's revenues have come from
leading auto and aerospace manufacturers including America's "Big Three"
automakers, BMW, Nissan and Boeing. However, the company has been moving
aggressively into the electronics industry, and has signed contracts with
Siemens, Philips, and Toshiba. This is an important move for the company for two
reasons. First, because there are many more electronics manufacturers than auto
or aerospace companies, it broadens their potential customer base. Secondly, we
think Tecnomatix stock has been restrained by the fact that the company's
revenues have been dependent on the relative health of two very cyclical
industries.
Tecnomatix is also a great fundamental bargain. Earnings are expected to
grow by nearly 60% in 1999 and another 20% in 2000. The company has a return on
equity approaching 20%, net cash of about $4.50 per share, and the stock trades
at about 15 times trailing earnings and less than 10 times this year's projected
earnings.
In closing, international small cap stocks have finally awakened from a
five-year nap. After a strong run, they could head back to the investment couch.
But, we think there is still a lot of energy in this well rested asset class and
that we may be entering an extended period of vigorous absolute and relative
performance. Our concentrated portfolio of 22 stocks has all the fundamental
characteristics we favor, with a 29.1% projected one-year earnings growth rate,
an average ROE of 23%, an average price/earnings ratio of 17.2, an average
price/book value of 3.0, and a yield of 1.7%.
Sincerely,
/s/ Bruce B. Bee
Bruce B. Bee
Portfolio Manager
- --------------------------------------------------------------------------------
GROWTH OF $10,000 (1)
[GRAPHIC OMITTED]
4/30/99
-------
FREMONT INTERNATIONAL SMALL CAP FUND $8,222
MSCI EAFE SMALL CAP INDEX $8,003
AVERAGE ANNUAL RETURNS FOR PERIODS ENDED 4/30/99
1 YEAR 3 YEARS SINCE INCEPTION (6/30/94)
- ---------------------------------------------
- -6.32% -7.69% -3.97%
ANNUAL RETURNS
06/30/94-10/31/94* -1.40%
11/01/94-10/31/95 -7.96%
11/01/95-10/31/96 +13.69%
11/01/96-10/31/97 -14.56%
11/01/97-10/31/98 -16.76%
11/01/98-04/30/99* +12.04%
TOP TEN HOLDINGS
PublicGroupe SA ............................. 6.4%
Stratec Holding AG .......................... 6.1%
Saville Systems PLC, ADR .................... 5.9%
Tecnomatix Technologies Ltd. ................ 5.6%
Orbotech Ltd. ............................... 5.6%
Norsk Lotteridrift ASA (NLD) ................ 5.2%
Lectra Systemes ............................. 5.2%
Nobel Biocare ............................... 5.1%
Dorling Kindersley Holdings PLC ............. 5.0%
Hung Hing Printing Group .................... 4.9%
TOTAL ............................... 55.0%
*Unannualized (1) Assumes Assumes initial investment of $10,000 on inception
date, June 30, 1994. 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 Europe, Australia and Far East (EAFE)
Small Cap Index.
- --------------------------------------------------------------------------------
FREMONT INTERNATIONAL SMALL CAP FUND GEOGRAPHIC DIVERSIFICATION AS OF 4/30/99
- --------------------------------------------------------------------------------
[GRAPHIC OMITTED]
Canada 2.3%
United States 4.2%
Europe 77.4%
Middle East 11.2%
Pacific Rim 4.9%
FREMONT MUTUAL FUNDS PAGES 6 AND 7
<PAGE>
- --------------------------------------------------------------------------------
FREMONT EMERGING MARKETS FUND
- --------------------------------------------------------------------------------
Henry Thornton
Portfolio Manager
Nicholas-Applegate Capital Management+
[PHOTO OMITTED]
Henry Thornton
- ------------
FUND PROFILE
- ------------
Fremont Emerging Markets Fund employs a bottom-up stock picking approach in
building a diversified portfolio of emerging market companies. The Fund focuses
on the stocks of companies with rapid, sustainable earnings growth trading at
reasonable market valuations. Portfolio risk is further reduced by country
diversification. Fund management establishes a country allocation policy and
each regional investment team conducts rigorous fundamental research, including
company visits, to select individual stocks within each market. Liquidity is
also carefully monitored.
Portfolio Manager Henry Thornton, Investment Director of International
Group Nicholas Applegate, is widely recognized as an expert in emerging market
investing. Based in London, Henry draws on Nicholas Applegate's experienced team
of analysts in London, Hong Kong, Singapore, San Diego and Houston.
+ Effective May 3, 1999, Nicholas-Applegate's Emerging Markets Investment Team
was acquired by the Colonial Limited group of companies. The group now operates
under the name CMG First State (Hong Kong) LLC.
To Our Shareholders,
For the six months ended April 30, 1999, the Fremont Emerging Markets Fund
returned 15.79% compared to the Morgan Stanley Capital International Emerging
Markets Free (MSCI-EMF) Index's 34.87% and the IFC Investable Index's 33.21%
respective gains.
In our last shareholder letter (October 31, 1998), we asked, "Are we
witnessing the death of emerging market investing or death rattle of this severe
bear market?" We favored the latter scenario, but added, "This is not to say
that emerging markets will recover quickly or uniformly. We are being cautious
and selective in allocating assets to countries and individual securities."
Caution did not work to our advantage, as emerging markets in Eastern Europe,
Asia, and Latin America recovered faster and advanced farther than we
anticipated. Our positioning in more defensive stocks throughout the emerging
market universe and our under-weighting in Latin America deserves much of the
blame for the Fund's under-performance relative to its benchmarks.
The good news is the Fund delivered respectable absolute returns over this
reporting period and emerging markets appear to be in the early stages of what
we believe will be a sustained bull market. There will be setbacks. For example,
we think the euphoria in Latin American stock markets will wear off as the
regions' economies continue to languish over the balance of the year.
Consequently, we remain under-weighted in Latin America. One must always worry
about unanticipated political events, upsetting the economic and investment
apple carts in some emerging market nations. Finally, if high flying Wall Street
sneezes, the emerging markets will likely catch a temporary cold.
However, the longer term positives outweigh the potential short term
negatives. Corporate Japan is finally getting its act together and a Japanese
economic renaissance will have a very favorable impact on emerging market Asia.
Countries like Thailand and Korea, which were the earliest and most severe
casualties of the region's economic implosion, are recovering, and by year-end
1999, we expect year-on-year GDP growth rates to exceed 5%. Ironically, Hong
Kong and China, which defended currencies rather than devaluing, will be slower
to recover, but should make substantial progress in the year ahead. Accordingly,
we are over-weighted in Asia, with approximately 39% of Fund assets in Thailand,
Korea, Hong Kong, India (10% each) and Taiwan (5%).
Eastern Europe has survived the collapse of the Russian Ruble. Lower
interest rates in the new "Euroland" should encourage an economic pick up in
Germany, emerging market Europe's most important trading partner. We currently
have approximately 13% of Fund assets in Eastern Europe and are continuing to
reduce positions in more defensive stocks like utilities and build up positions
in more economically sensitive sectors.
Finally, commodities prices have stabilized and we believe will trend
modestly higher over the next several years. We have built positions Russia's
LukOil (oil), Poland's KGHM (copper), and South Africa's Anglo American (gold,
coal and diamonds) and Sasol Ltd. (oil and chemicals), all of which should be
more profitable in the year ahead.
Interestingly, many of the investment gurus who had left the emerging
markets for dead have come full circle and are now claiming they are already
overvalued. We think they will be wrong twice. Emerging market stocks may look
rich based on severely depressed trailing 12 month earnings. But, we believe
they will prove cheap based on next year's numbers.
In recent years, one of the things that has propelled the U.S. markets and
European stocks is the restructuring of corporate operations and rationalization
of assets. This is beginning to happen in the emerging markets as well. Let me
provide an example from our portfolio. KGHM is a Polish copper mining company
formerly owned and operated by the government. Although plant and equipment is
outmoded and the workforce is still too large, KGHM is able to produce copper at
around 60 cents a pound. With still depressed copper selling around 68 cents per
pound, the company is making decent money. New private management is taking the
right steps--investing in new plant and equipment and reducing the workforce.
Production costs will come down and profit margins will expand. KGHM is also
jettisoning the non-core, and usually unprofitable operations characteristic of
old Soviet Bloc companies.
KGHM also has a 20% stake in PolKomTel, one of two (soon to be three)
cellular telephone operators in Poland. We estimate this investment is worth
around $500 million--about half of KGHM's current market capitalization. If
PolKomTel comes public or with all the consolidation in the cellular industry
worldwide, some company acquires it, the value of this still largely
unrecognized asset would surface. At its current stock price, we believe we are
getting KGHM's PolKomTel investment for free.
In conclusion, our "better safe than sorry" posture restrained relative
returns during this reporting period. We are now better positioned to benefit
more fully from what we believe will be an extended bull market in emerging
market equities.
Sincerely,
/s/ Henry Thornton
Henry Thornton
Portfolio Manager
- --------------------------------------------------------------------------------
GROWTH OF $10,000 (1)
[GRAPHIC OMITTED]
4/30/99
-------
FREMONT EMERGING MARKETS FUND $7,880
MSCI EMERGING MARKETS FREE $7,991
AVERAGE ANNUAL RETURNS FOR PERIODS ENDED 4/30/99
1 YEAR 2 YEARS SINCE INCEPTION (6/24/96)
- ---------------------------------------------
- -29.33% -16.43% -8.03%
ANNUAL RETURNS
06/24/96-10/31/96* -3.12%
11/01/96-10/31/97 +12.55%
11/01/97-10/31/98 -37.59%
11/01/98-04/30/99* +15.79%
TOP TEN HOLDINGS
Shin Corp. Public Co. Ltd. .................. 6.0%
Telefonos de Mexico SA, ADR ................. 5.8%
Corp. Interamericana de
Entretenimiento SA ......................... 4.0%
Korea Electric Power Corp., ADR ............. 4.0%
Ranbaxy Laboratories Ltd., GDR .............. 4.0%
Sasol Ltd. .................................. 4.0%
Pohang Iron & Steel Co. Ltd. ................ 3.9%
China Telecom Ltd. .......................... 3.1%
Dar Al-Dawa Development
and Investment ............................. 2.9%
South Africa Breweries PLC .................. 2.8%
TOTAL ............................... 40.5%
- --------------------------------------------------------------------------------
FREMONT EMERGING MARKETS FUND GEOGRAPHIC DIVERSIFICATION AS OF 4/30/99
- --------------------------------------------------------------------------------
[GRAPHIC OMITTED]
United States 10.4%
Emerging Markets Latin America 15.9%
Emerging Markets Other 13.4%
Emerging Markets Europe 8.6%
Middle East 9.6%
Emerging Markets Asia 22.9%
Pacific Rim 19.2%
FREMONT MUTUAL FUNDS PAGES 8 AND 9
<PAGE>
- --------------------------------------------------------------------------------
FREMONT U.S. MICRO-CAP FUND
- --------------------------------------------------------------------------------
Robert E. Kern, Jr.
Portfolio Manager
Kern Capital Management LLC
[PHOTO OMITTED]
Robert E. Kern, Jr.
- ------------
FUND PROFILE
- ------------
The U.S. micro-cap stock market is a breeding ground for entrepreneurially-
managed companies with exceptional growth prospects. With minimal Wall Street
research coverage and low institutional ownership, micro-cap stocks represent
the least efficient sector of the domestic equities market. This inefficiency
creates attractive investment opportunities for the research-driven stock
pickers managing the Fremont U.S. Micro-Cap Fund.
Since the investment potential of micro-cap stocks is largely determined by
the business prospects for individual companies rather than macro-economic
trends, the Fund's focus is on bottom-up stock selection. Fund management
analyzes financial statements, the company's competitive position, and meets
with key corporate decision makers to discuss strategies for future growth.
Robert E. Kern, Jr. is nationally recognized as a pioneer and leading
practitioner of micro-cap research and portfolio management.
To Our Shareholders,
For the six months ended April 30, 1999, the Fremont U.S. Micro-Cap Fund
gained 46.21% compared to the Russell 2000's 15.16% advance.
The strategy we implemented in the dark days of August/September,
1998--concentrating the portfolio in those individual stocks and sectors we
believed would lead a micro-cap recovery--rewarded us during this reporting
period. We handily outperformed our Russell 2000 benchmark in the initial stages
of the small company stock rebound (October, 1998 through January, 1999) and
have maintained this large performance edge over the last three months of first
half fiscal 1999.
Coming off the October 1998 bottom, virtually all of our portfolio sectors
(consumer, technology, services, healthcare, and special situations) performed
well. Over the last several months sector performance has diverged, with our
consumer, technology, and services holdings materially outperforming our
healthcare and special situation investments.
Consumer companies have benefited from a high level of consumer confidence
spawned by full employment, rising wages, and the wealth effect of this historic
bull market. They have been able to sustain and in some cases, expand profit
margins, because of suppliers' lack of pricing flexibility. We believe the
American consumer will continue to spend liberally and that our consumer company
holdings will continue to grow earnings at attractive rates.
Our technology holdings performed well in general and certain sub-sectors
have been particularly productive, most notably what we refer to as internet
"enablers". These include companies that provide account identification and
transaction security systems and services to the e-commerce players, and
broadband companies that have developed technologies that expand the
transmission capacity of copper phone wires, allowing for faster internet
service. Importantly these "enablers" remain much more reasonably priced than
the ".com" start ups that come public at 10 and trade at 100 an hour later. We
believe owning seasoned companies that serve large segments of the internet
industry is more prudent than speculating on which of the many new portals will
ultimately succeed.
Concern over the prospect of additional federal "reform" has put a cloud
over the healthcare sector. We aren't giving up on our healthcare holdings, many
of which are specialty medical equipment makers not likely to be as negatively
impacted by any prospective regulatory change as healthcare service providers.
We think these stocks can do quite well when investors look at them more
objectively.
Since the consumer sector now has the largest weighting in the portfolio,
let's discuss one of our favorite consumer companies with Judy Finger, one of
the Fund's three senior investment managers and an expert on the consumer
sector. Genesco is a shoe retailer, whose stock sold off last year due primarily
to a general slowdown throughout the footwear industry. In the midst of this
slump, Genesco aggressively cut costs, and fourth quarter 1998 earnings came in
well above consensus estimates. Going forward, we believe earnings will continue
to be strong, driven by top line revenue growth from its Journey's chain
(pop-ular brand footwear for teens and children) and its Johnston & Murphy
division, which retails and wholesales upscale men's dress shoes. Journey's is a
great concept serving one of the fastest growing demographic segments of the
market, and Johnston & Murphy has built a strong brand name in one of the
highest margin categories in the industry. Also, Genesco opened 75 new stores
last year. Generally store sales ramp up substantially in the second and third
years. This should provide a revenue tailwind for the company. Genesco stock has
done well this year, but we think it is still reasonably priced relative to very
favorable earnings growth prospects.
In closing, the Fremont U.S. Micro-Cap Fund will celebrate its fifth
anniversary on June 30, 1999. From its inception through the end of this
reporting period, the Fund had a compounded average annual return in excess of
24%, at the very top of its micro-cap fund peer group. We are extremely proud of
this record, especially considering it was achieved over a period in which small
company stocks have not done particularly well compared to other equities
capitalization sectors. Why have we done so well relative to our benchmark and
our peers? We credit research driven stock selection focused on the most
innovative sectors in the economy. Quite simply, we have been able to find
excep- tional small growth companies in America's most dynamic industries. That
has translated into superior absolute and relative performance.
Our attractive annualized returns have not come without some
volatility--such is the nature of small company stock investing. However, we
believe when we reach the Fund's tenth anniversary in 2004, we will have
continued to fulfill our mission--rewarding loyal shareholders with generous
long term investment returns.
Sincerely,
/s/ Robert E. Kern
Robert E. Kern, Jr.
Portfolio Manager
- --------------------------------------------------------------------------------
GROWTH OF $10,000 (1)
[GRAPHIC OMITTED]
4/30/99
-------
FREMONT U.S. MICRO-CAP FUND $29,302
RUSSELL 2000 INDEX $19,294
AVERAGE ANNUAL RETURNS FOR PERIODS ENDED 4/30/99
1 YEAR 3 YEARS SINCE INCEPTION (6/30/94)
- ---------------------------------------------
6.84% 13.89% 24.92%
ANNUAL RETURNS
06/30/94-10/31/94* +3.60%
11/01/94-10/31/95 +38.68%
11/01/95-10/31/96 +41.46%
11/01/96-10/31/97 +28.80%
11/01/97-10/31/98 -23.45%
11/01/98-04/30/99* 46.21%
TOP TEN HOLDINGS
Orckit Communications Ltd. .................. 4.4%
Emulex Corp. ................................ 3.4%
Rent-Way, Inc. .............................. 3.3%
Wesley Jessen VisionCare, Inc. .............. 3.0%
NPC International, Inc. ..................... 2.8%
Anaren Microwave, Inc. ...................... 2.7%
MDSI Mobile Data Solutions, Inc. ............ 2.7%
Information Resources, Inc. ................. 2.4%
Photon Dynamics, Inc. ....................... 2.1%
Cinar Films, Inc. (Class B) ................. 1.9%
TOTAL ............................... 28.7%
*Unannualized (1) Assumes initial investment of $10,000 on inception date, June
30, 1994. 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 U.S. MICRO-CAP FUND PORTFOLIO DIVERSIFICATION AS OF 4/30/99
- --------------------------------------------------------------------------------
[GRAPHIC OMITTED]
Short Term Securities (16.7%)
Consumer Services (11.7%)
Technology (Software) (6.0%)
Business Equipment & Services (9.3%)
Consumer Non-durables (8.8%)
Health Care (9.6%)
Retail (10.6%)
Other (11.4%)
Technology (Components) (15.9%)
FREMONT MUTUAL FUNDS PAGES 10 AND 11
<PAGE>
- --------------------------------------------------------------------------------
FREMONT U.S. SMALL CAP FUND
- --------------------------------------------------------------------------------
David G. Kern, CFA,
Portfolio Manager
Kern Capital Management LLC
[PHOTO OMITTED]
David G. Kern, CFA
- ------------
FUND PROFILE
- ------------
U.S. small cap stocks offer tremendous opportunity to professional
investors dedicated to hands on fundamental research. Through rigorous
fundamental analysis, including visits with corporate managements, their
suppliers, customers and competitors, Fund management strives to identify small
relatively unknown companies with the potential to become larger and more
successful over time.
Research is concentrated in industries with the greatest level of
innovation such as technology, healthcare, consumer, and services. The research
process focuses on answering three basic questions: how attractive is the
business; how strong is management; and how much is the company worth?
Portfolio Manager David G. Kern, CFA, co-founded Kern Capital Management
LLC, a firm dedicated exclusively to small company stock research and portfolio
management.
To Our Shareholders,
For the six months ended April 30, 1999, the Fremont U.S. Small Cap Fund
returned 37.99% versus the Russell 2000 Index's 15.16% gain.
Successful investing is about making good decisions in up and down markets.
We responded to last summer's sharp small cap market decline by concentrating
the portfolio on the very best companies with the highest degree of earnings
visibility in the most innovative industry sectors. We reasoned that if these
companies met or exceeded earnings expectations, they would lead the small cap
market recovery. As evidenced by the Fund's excellent absolute and relative
returns coming off the October 1999 bottom, this decision worked to our
advantage.
In the midst of what has been a better small cap stock market, we made some
other decisions that helped us extend our lead over the Russell 2000 through
this reporting period. Software stocks were among our biggest winners in
first-half fiscal 1999. In fact, they performed so well that valuations became
somewhat excessive. In short, they were priced as if nothing could possibly go
wrong. Believing these companies could run into some trouble as customers began
spreading out software orders, we took profits in advance of somewhat
disappointing first quarter earnings and this sub-sector's April retreat. We
reinvested some of these profits in communications technology and consumer
companies, which were more reasonably priced and which have fared much better
recently. We continue to strive to make the kind of timely investment decisions
that can lead to superior long-term performance.
Along with our technology holdings, consumer and services stocks also
performed quite well in fiscal first half 1999. Our healthcare investments
lagged. We have been underweighted in this sector since the Fund's inception.
Healthcare remains one of America's most innovative industries. However, we are
not finding as many attractive opportunities in the healthcare arena as we are
in the other three sectors we focus on. At around 30% of total assets, consumer
stocks now have the heaviest weighting in our portfolio. Technology is second at
about 23%, followed by services at approximately 20%, healthcare at about 12%,
and special situations at around 8%. The balance is in cash, much of which has
come in recently from new investments in the Fund.
Small cap stocks came roaring back in fourth quarter 1998 and, after
catching their breath in first quarter 1999, were the market's best performers
in April. Is this simply a strong rebound in an extremely oversold asset class,
or a major change in investor sentiment? We don't know. However, whether
investors choose to focus on small cap stocks or not, we believe the best
managed, most innovative companies will record the kind of earnings growth that
will attract sufficient investor interest for the Fund to provide good long-term
returns. Looking ahead to the balance of 1999, we expect the small cap market to
continue to be volatile. We will try to use this volatility to our advantage by
taking profits in those individual stocks that become more richly valued and
redirecting assets to opportunities with better risk/reward profiles.
We believe TeleTech Holdings is one such company. TeleTech is a leading
"customer care" firm serving large companies in a wide variety of industries. If
you're a customer of one of these big companies and need information, or have a
problem that needs attention, you may think you are calling that company, but
you are really dialing up someone from an independent customer care company like
TeleTech. As more large multi-national companies outsource customer care
operations, companies like TeleTech should flourish.
Last year, TeleTech stumbled, as revenue from two of its largest customers
declined substantially. Despite this, revenue still grew by 30%; however,
margins contracted, earnings disappointed, and the stock got hit hard. TeleTech
responded by aggressively signing up new clients, and we expect margins to begin
expanding to more normalized levels soon. Earnings should follow suit. We are
estimating $0.40 per share in 1999, followed by $0.50-$0.55 in the year 2000. At
the end of the current reporting period, TeleTech stock was trading around 20
times depressed 1998 earnings, 16 times our 1999 estimates and only about 12
times our 2000 forecasts. That's much too low a valuation for a company we
believe will grow top line revenues and earnings by 30% annually for the next
several years.
While the Fremont U.S. Small Cap Fund is not yet two years old, we are
pleased with what we have accomplished thus far. We have outperformed our
Russell 2000 benchmark in rising and falling markets--a true testament to our
team's focus on the most innovative sectors of the U.S. economy and research
driven stock selection. We believe this will continue to be the best formula for
generating superior investment returns throughout the small cap market cycles.
Sincerely,
/s/ David G. Kern
David G. Kern, CFA
Portfolio Manager
- --------------------------------------------------------------------------------
GROWTH OF $10,000 (1)
[GRAPHIC OMITTED]
4/30/99
-------
FREMONT U.S. SMALL CAP FUND $12,274
RUSSELL 2000 INDEX $ 9,806
AVERAGE ANNUAL RETURNS FOR PERIODS ENDED 4/30/99
1 YEAR SINCE INCEPTION (9/24/97)
- -----------------------------------
11.99% 13.70%
ANNUAL RETURNS
09/24/97-10/31/97* -4.06%
11/01/97-10/31/98 -7.29%
11/01/98-04/30/99* 37.99%
TOP TEN HOLDINGS
Orckit Communications Ltd. .................. 4.0%
Calpine Corp. ............................... 3.9%
NPC International, Inc. ..................... 3.5%
Rent-Way, Inc. .............................. 3.4%
TeleTech Holdings, Inc. ..................... 3.4%
FORE Systems, Inc. .......................... 3.4%
National Data Corp. ......................... 3.1%
Cinar Films, Inc. (Class B) ................. 2.9%
Verisign, Inc. .............................. 2.8%
Pinnacle Holdings, Inc. ..................... 2.4%
TOTAL ............................... 32.8%
*Unannualized (1) Assumes initial investment of $10,000 on inception date,
September 24, 1997. 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 U.S. SMALL CAP FUND SECTOR DIVERSIFICATION AS OF 4/30/99
- --------------------------------------------------------------------------------
[GRAPHIC OMITTED]
Business Equipment & Services (15.4%)
Other (13.9%)
Short Term Securities (5.9%)
Consumer Services (8.6%)
Technology (Software) (9.7%)
Retail (10.6%)
Consumer Non-durables (11.2%)
Technology (Components) (12.2%)
Health Care (12.5%)
FREMONT MUTUAL FUNDS PAGES 12 AND 13
<PAGE>
- --------------------------------------------------------------------------------
FREMONT GROWTH FUND
- --------------------------------------------------------------------------------
W. Kent Copa, CFA, Debra McNeill, CFA,
& Peter Landini
Portfolio Co-Managers
Fremont Investment Advisors, Inc.
[PHOTO OMITTED]
W. Kent Copa, CFA
- ------------
FUND PROFILE
- ------------
The Fremont Growth Fund invests principally in large capitalization U.S.
stocks. The goal is to outperform the Standard & Poor's 500 and the average of
its large cap growth stock fund peer group.
Superior earnings growth generally translates into superior stock
performance. However, stocks with excellent earnings records often trade at high
valuations and unanticipated earnings disappointments can result in sharp
declines. In short, reward potential is accompanied by a somewhat higher level
of risk. Through quantitative analysis, the portfolio management team seeks to
identify stocks with superior earnings growth prospects trading at more
reasonable valuations. The goal is to build a diversified portfolio with
favorable risk/reward characteristics.
Portfolio Co-Managers Ken Copa, Debra McNeill, and Peter Landini have a
combined 54 years of professional investment experience.
To Our Shareholders,
For the six month period ended April 30, 1999, the Fremont Growth Fund
returned 21.33% compared to the Standard & Poor's 500 Index's 22.32% and the
Lipper Growth Fund Average's 23.41% respective returns.
Relative returns over this reporting period were strongly influenced by
first quarter 1999's "Supermodel" market-- extremely thin and very glamorous.
Seventeen wildly popular stocks returned 22.45% in the first three months of
1999, while the remaining 483 stocks in the S&P 500 were down 0.42%,
collectively. Although we held many of the Supermodel securities, we were also
invested in other less fashionable, more reasonably valued stocks. Market
breadth improved in April, helping us close first-half fiscal 1999 with very
competitive returns versus the S&P 500 benchmark.
We remain committed to a stock selection process designed to create a
portfolio with above market average earnings growth and a below market average
price/earnings ratio. Currently, the portfolio's five year annualized projected
earnings growth rate is 17.4% and its P/E is 23.5 compared to the S&P 500's
15.6% and 26.6, respectively. We believe a portfolio with these fundamental
characteristics can produce superior returns over the longer term.
Technology stocks including Sun Microsystems, EMC Corp., and Cisco Systems,
were among the portfolio's top performers in first half fiscal 1999. Retailers
WalMart, Abercrombie & Fitch, Best Buy, and Home Depot also made substantial
contributions to Fund results. Branded consumer goods holdings like Coca-Cola
and Procter & Gamble disappointed, as did pharmaceutical holdings Warner-Lambert
and Eli Lilly.
While we continue to enjoy a vibrant large cap growth stock market, we
wonder how much farther the S&P 500 can advance before stalling or perhaps
correcting. Considering the current strength of the U.S. economy, we doubt
interest rates will come down appreciably for the balance of the year. That
indicates stocks will now be driven by earnings rather than by expanding
price/earnings multiples as they were in 1998. The consensus 1999 earnings
growth projection for the S&P 500 is about 8%. In the first four months of this
year, the S&P 500's return has already equaled this projected earnings growth
rate. First quarter earnings have generally been better than expected. However,
this may not carry over into the second, third and fourth quarters. Our
conclusion is that unless earnings growth is well above consensus expectations,
investors anticipating endless price gains will be disappointed.
Have you driven a Ford lately? We have and we like what we see. In recent
years, Ford has been criticized for not coming up with a worthy successor to its
still popular Taurus sedan. However, Ford maintains a dominant market share in
high margin SUVs and light trucks. Fordacquisition of Volvo adds another top
shelf auto brand name to compliment Jaguar. Ford now covers the price and model
spectrum as well as any of the other Big Three automakers.
New management, led by President and CEO Jacques Nasser, is revamping
Ford's marketing program with a focus on aggressively promoting brand image. Mr.
Nasser has shocked Detroit by bringing in senior marketing executives from
outside the auto industry to serve as brand managers. We believe what worked for
Procter & Gamble will work for Ford as well. Ford is also entering new auto
related businesses with the goal of taking care of loyal customers' "cradle to
grave" transportation needs. It's acquisition of Kwik Fit, Europe's largest
independent auto maintenance and repair chain and Copher Brothers Auto Parts,
the leading auto dismantling and recycling business in the U.S., takes Ford from
building, selling and financing new cars, to repair and maintenance, to
scrapping old junkers. We think they will make money every step of the way.
We are projecting a five year average annual earnings growth rate of just
under 10% for Ford. It is trading at about 12 times 1999 earnings projections,
and most brokerage firms have already raised their 1999 estimates. Ford just
announced very good first quarter results, which should inspire more upward
earnings revisions.
We also expect to take Citigroup stock to the bank. Like all the other
leading financial stocks, Citigroup was hit hard in third quarter 1998, when the
world was coming to an end. Interestingly, Asia's economic problems created
additional global opportunities for Citigroup in its banking, investment
banking, and brokerage businesses. We believe Citigroup will capitalize on these
opportunities. We project a 13% five-year average annual earnings growth rate
for Citigroup, and the stock is trading at about 19.5 times our 1999 earnings
forecast.
In closing, we are pleased to have achieved a solid return of 21.33% in
fiscal first-half 1999, but are modestly disappointed that we trailed our S&P
500 benchmark by 1%. It has been a somewhat unique market, with a relative
handful of stocks propelling the index while most stocks languished. In April,
some of the more richly valued stocks lost momentum, while more reasonably
priced stocks excelled. We believe this foreshadows an environment in which our
stock selection process will really shine.
Sincerely,
/s/ Kent Copa /s/ Debra McNeill
/s/ Peter Landini
Kent Copa, Debra McNeill,
& Peter Landini
Portfolio Co-Managers
- --------------------------------------------------------------------------------
GROWTH OF $10,000 (1)
[GRAPHIC OMITTED]
4/30/99
-------
S&P 500 INDEX $36,993
FREMONT GROWTH FUND $30,798
AVERAGE ANNUAL RETURNS FOR PERIODS ENDED 4/30/99
1 YEAR 5 YEARS SINCE INCEPTION (8/14/92)
- ---------------------------------------------
10.99% 22.75% 18.26%
ANNUAL RETURNS
08/14/92-10/31/92* +2.00%
11/01/92-10/31/93 +12.80%
11/01/93-10/31/94 +1.72%
11/01/94-10/31/95 +28.12%
11/01/95-10/31/96 +22.06%
11/01/96-10/31/97 +29.26%
11/01/97-10/31/98 +7.30%
11/01/98-04/30/99* +21.33%
TOP TEN HOLDINGS
99-Jun S&P 500 Futures ...................... 16.1%
Microsoft Corp. ............................. 3.5%
Ford Motor Co. .............................. 3.4%
General Electric ............................ 2.5%
Wal-Mart Stores, Inc. ....................... 2.2%
Citigroup, Inc. ............................. 2.0%
Federal National Mortgage Association ....... 2.0%
Cisco Systems, Inc. ......................... 1.9%
Intel Corp. ................................. 1.9%
MCI WorldCom, Inc. .......................... 1.8%
TOTAL ............................... 37.3%
*Unannualized (1) Assumes initial investment of $10,000 on inception date,
August 14, 1992. 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.
- --------------------------------------------------------------------------------
FREMONT GROWTH FUND SECTOR DIVERSIFICATION AS OF 4/30/99
- --------------------------------------------------------------------------------
[GRAPHIC OMITTED]
Technology (16.3%)
Other (24.9%)
Short-term Securities (17.2%)
Retail (6.8%)
Health Care (9.3%)
Utilities (11.5%)
Financial Services (14.0%)
FREMONT MUTUAL FUNDS PAGES 14 AND 15
<PAGE>
- --------------------------------------------------------------------------------
FREMONT REAL ESTATE SECURITIES FUND
- --------------------------------------------------------------------------------
John Kramer & Paul Gray
Portfolio Co-Managers
Kensington Investment Group
[PHOTO OMITTED]
John Kramer
- ------------
FUND PROFILE
- ------------
The commercial real estate industry is in the early stages of a major
transformation. Privately held real estate empires are being replaced by
financially strong, well managed, publicly traded companies, that buy, sell and
manage commercial property throughout the U.S. In the process, stock market
investors are being given an unprecedented opportunity to participate in an
industry that has generated enormous wealth.
Portfolio Co-Managers John Kramer and Paul Gray monitor macro-economic
trends, supply/ demand dynamics and industry fundamentals in allocating assets
to real estate securities (primarily Real Estate Investment Trusts or REITs) in
different commercial sectors including office, apartment, retail, hotel and
industrial. Individual securities selection is based on the analysis of
corporate managements' acquisition, development and operating records; earnings
and dividend growth potential; and valuation relative to other publicly traded
real estate companies.
To Our Shareholders,
For the six month period ended April 30, 1999, the Fremont Real Estate Fund
gained 5.73%, compared to the National Association of Real Estate Investment
Trusts (NAREIT) Composite Index's 1.64% advance.
Real estate securities remained under pressure through most of this
reporting period until a strong April rally took them into positive performance
territory. The Fund's superior relative performance resulted from strong
advances in some of our smaller cap holdings as well as participation in April's
large cap led rally. We were fully invested through most of the reporting
period, but sold into April's rally to raise cash for anticipated future
opportunities.
When we last reported to shareholders on October 31, 1998, real estate
securities were mired in a bear market that began in late 1997. We pointed out
that industry fundamentals were actually quite good, but investor psychology
remained negative. At the time, investors' seemed convinced that increased
construction activity would result in over-capacity, reduced cash flows and a
decline in property values--similar to what happened in the late 1980's. We
dissented, explaining that new construction as a percentage of existing
inventory was relatively modest and that tighter capital markets would further
restrain construction and prevent over-capacity from developing. We went on
record saying, "...barring a rather severe recession, real estate company cash
flows, dividends, and property values would appear quite secure." As we write,
that forecast has proven accurate.
We also pointed out that based on historical valuation benchmarks, real
estate securities were cheap and opined that, "if there were more liquidity in
the system, today's low prices would probably spawn a substantial wave of
acquisitions and leverage buyouts." That too, is beginning to happen. Merger and
acquisition activity in the real estate sector is picking up and management's of
several companies have taken advantage of low stock prices to buyout public
shareholders.
Real estate securities are attracting other value investors as well--most
notably Warren Buffett, who within a five day span in April, filed 13Ds
(beneficial ownership of more than 5% of a publicly traded stock) with the
Securities and Exchange Commission on two real estate companies, Tanger Factory
Outlets and Town & Country Realty. So, smart money is clearly making some big
bets on real estate companies. Also, after more than a year of substantial
outflows from real estate securities funds, we are finally seeing some evidence
that the retail investor is returning as well. This should help provide further
momentum for the group.
Industry fundamentals remain sound. New office construction figures,
released in mid-April, are at the lowest level since August, 1997 and are a full
12% below figures from a year ago. Commercial real estate occupancy rates remain
high, cash flows are strong, and real estate company earnings have been meeting
or beating consensus estimates. As always, we will be monitoring new
construction, leverage and property pricing carefully to assess risk in the
group.
More importantly, real estate stocks are still cheap. Both dividend and
cash flow yields relative to 10-Year Treasury Bonds are near historic highs and
dividend payout ratios are at historic lows. Also, many real estate stocks are
still trading at a discount to break up value, as opposed to the traditional
premium--we believe foreshadowing more acquisitions and LBO's in the sector.
Let us give you an example of the kind of opportunities available. Prentiss
Properties owns and manages suburban office and industrial buildings primarily
in the Southwest and Southeast. The company's properties have an occupancy rate
of 96% and the portfolio experienced a 20% increase in rental rates on renewed
leases signed in the first quarter. We expect Prentiss' 1999 earnings to come in
about 10% higher than last year's and are projecting comparable earnings growth
in 2000. Prentiss Properties stock is trading at around 7.5 times our 1999
earnings estimates and is yielding 7.5%. The company recently raised its
dividend to meet REIT dividend payout requirements. Bottom line, we are getting
paid 7.5% on our investment in a company that is growing 10% a year. Even
without any multiple expansion, this translate into a 17.5% total return.
In closing, based on April's strong performance, real estate stocks appear
to be back on solid footing after a fifteen month slide. Industry fundamentals
are strong and values abound. We have built a diversified portfolio of quality
real estate stocks that we expect to participate in the group's recovery.
Sincerely,
/s/ John Kramer /s/ Paul Gray
John Kramer and Paul Gray
Portfolio Co-Managers
- --------------------------------------------------------------------------------
GROWTH OF $10,000 (1)
[GRAPHIC OMITTED]
4/30/99
-------
FREMONT REAL ESTATE SECURITIES FUND $8,588
NAREIT COMPOSITE INDEX $8,355
AVERAGE ANNUAL RETURNS FOR PERIODS ENDED 4/30/99
1 YEAR SINCE INCEPTION (12/31/97)
- ------------------------------------
- -13.60% -10.83%
ANNUAL RETURNS
12/31/97-10/31/98* -18.78%
111/01/98-04/30/99* 5.73%
TOP TEN HOLDINGS
Prentiss Properties Trust ................... 5.3%
American Industrial Properties REIT ......... 5.0%
Koger Equity, Inc. .......................... 4.5%
Malan Realty Investors, Inc. ................ 4.2%
Pacific Gulf Properties, Inc. ............... 4.1%
Wellsford Real Properties, Inc. ............. 4.0%
Lexford Residential Trust ................... 3.6%
Equity Residential Properties Trust ......... 3.5%
Banyan Strategic Realty Trust ............... 3.4%
Brandywine Realty Trust ..................... 3.4%
TOTAL ............................... 41.0%
*Unannualized (1) Assumes initial investment of $10,000 on inception date,
December 31, 1997. 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 National Association of Real Estate Investments Trusts(R)
(NAREIT) ALL Index.
- --------------------------------------------------------------------------------
FREMONT REAL ESTATE SECURITIES FUND SECTOR DIVERSIFICATION AS OF 4/30/99
- --------------------------------------------------------------------------------
[GRAPHIC OMITTED]
Non-REIT (Diversified) (4.0%)
REIT (Hotels) (4.4%)
Other (7.0%)
REIT (Diversified) (6.9%)
REIT (Industrial) (6.3%)
REIT (Community Centers) (11.5%)
REIT (Apartments) (13.9%)
Short-term Securities (13.4%)
REIT (Office) (32.6%)
FREMONT MUTUAL FUNDS PAGES 16 AND 17
<PAGE>
- --------------------------------------------------------------------------------
FREMONT BOND FUND
- --------------------------------------------------------------------------------
Bill Gross
Portfolio Manager
Founder & Managing Director
Pacific Investment Management
Company (PIMCO)
[PHOTO OMITTED]
Bill Gross
- ------------
FUND PROFILE
- ------------
The Fremont Bond Fund invests in high quality corporate, mortgage-backed,
hedged international, and government bonds. The Fund's goal is to consistently
provide attractive risk-adjusted returns relative to the broad fixed-income
market.
The Fund's investment philosophy embodies three key principles: First,
portfolio strategy is driven by longer-term trends in interest rates. Three-to
five-year economic, demographic, and political forecasts are updated annually to
identify the long-term interest rate trend. Second, consistent performance is
achieved by avoiding extreme swings in portfolio maturity/duration. Finally,
emphasis is placed on adding value through the analysis of traditional variables
such as sector, coupon, and quality.
Portfolio Manager Bill Gross, founder and managing director of Pacific
Investment Management Company (PIMCO), has 26 years of professional fixed income
investment experience. In addition to serving as the sub-advisor to the Fremont
Bond Fund, PIMCO manages over $165 billion in fixed income investments for
institutional clients.
To Our Shareholders,
For the six-month period ended April 30, 1999, the Fremont Bond Fund
returned 0.78% compared to a 0.68% return for the Lehman Brothers Aggregate Bond
Index. Interest rates rose during this period as continued evidence of strong
U.S. economic growth heightened concern that the Federal Reserve would boost
rates to keep inflation subdued. Despite the economy's rapid growth, there were
few signs that inflation was actually increasing, which allowed the Fed to
remain on the sidelines. The Fed was also reluctant to curtail growth in the
U.S. with many of the world's economies in or near recession.
During this period, the Fremont Bond Fund maintained a longer-than-index
maturity structure which detracted from the Fund's performance due to rising
interest rates. Although the rise in interest rates had a negative impact on the
portfolio's performance, sector strategies implemented during the last six
months had a positive impact. The Fund's exposure to the mortgage sector
contributed significantly to returns. Mortgages benefited because rising rates
slowed new issuance, eased supply pressures and reduced the incentive for
homeowners to prepay their mortgages. Corporates and high yield bonds also
performed well due to investors' increased tolerance for credit risk arising
from a stronger economy and calmer financial markets. The Fund's exposure to
investment grade and high yield corporates also added to the Bond Fund's
performance. Lastly, the Fund's modest allocation to non-U.S. and emerging
market bonds contributed to the portfolio's outperformance. Developed non-U.S.
bonds generally fared better than Treasuries because slower growth outside the
U.S. sparked central bank rate cuts in other developed markets. Emerging market
bonds also outperformed due to improved market sentiment toward Brazil and signs
of economic recovery in the Pacific Rim.
Market Outlook
The current U.S. economic expansion will continue, albeit at a slower rate
than seen in the last six months or the past year as a whole. The Federal
Reserve will remain on hold in the face of moderate growth, subdued inflation
and relatively calm global financial markets, fostering a more stable interest
rate environment. With real interest rates high, the Fed has room to ease should
the economy slow more than anticipated. Consumer and investment spending will
remain positive for the economy, though growth of each will slow from current
high levels. Consumers, confident in the face of low unemployment and stock
market gains, have recently been dipping into savings to finance purchases. We
believe this trend is not sustainable and that consumption will slow as saving
returns to more normal levels. Investment spending will grow at a slower rate
because marginal returns should decline while capacity utilization remains
relatively low, providing less incentive to invest.
Trade will be less of a drag on the economy going forward. Pacific Rim
economies such as South Korea and the Philippines, although still struggling,
have recovered faster than expected. Rising demand from this region will boost
exports. Efforts by Japan to revive its economy with increased government
spending and monetary stimulus offer the potential for increased demand
worldwide. Nonetheless, sluggish European economies and recessions in Latin
America will remain negatives for the U.S. trade balance.
Inflation will remain benign because productivity gains will continue to
offset wage pressures, though the level of inflation will rise modestly in the
absence of declining energy prices.
We expect interest rates to move in a range near current levels over the
next several months. As a result, yield will be more important than price
movement in determining portfolio returns. Sources of extra yield include
strategies and securities designed to collect option premiums, as well as sector
rotation and security selection. We will continue to hold mortgage securities,
emphasizing agency mortgages which continue to offer attractive yields but
minimal credit risk.
The balance between risk and return is less favorable in the
investment-grade corporate sector, which offers relatively modest yields given
the credit risk. While below-investment-grade and emerging market bonds pose
greater risk than high-grade corporates, we can capture attractive risk-adjusted
yields by focusing on upper-tier credits in these sectors. Opportunities in
currency-hedged developed non-U.S. markets remain limited given the generally
higher real yields offered by U.S. issues.
We thank you for your continued support and trust you have placed in us. As
always, we will continue to work hard to meet your investment needs.
Sincerely,
/s/ Bill Gross
Bill Gross
Portfolio Manager
Fremont Bond Fund
- --------------------------------------------------------------------------------
GROWTH OF $10,000 (1)
[GRAPHIC OMITTED]
4/30/99
-------
FREMONT BOND FUND $15,422
LEHMAN BROS. AGGREGATE BOND INDEX $14,840
AVERAGE ANNUAL RETURNS FOR PERIODS ENDED 4/30/99
1 YEAR 5 YEARS SINCE INCEPTION (4/30/93)
- ---------------------------------------------
7.68% 8.95% 7.49%
ANNUAL RETURNS
04/30/93-10/31/93* +5.15%
11/01/93-10/31/94 -4.42%
11/01/94-10/31/95 +16.49%
11/01/95-10/31/96 +8.18%
11/01/96-10/31/97 +9.54%
11/01/97-10/31/98 +10.31%
11/01/98-04/30/99* +0.78%
TOP TEN HOLDINGS
FHLMC TBA, 6.000%, 05/17/29 ................. 18.9%
10-yr. U.S. Treasury Note Futures,
148 contracts, Exp. June '99 ........ 8.9%
U.S. Treasury Bond, 8.875%, 08/15/17 ........ 6.6%
Muni Bond Futures, 100 Contracts,
Exp. June `99 ....................... 6.5%
FNMA MTN, 6.200%, 08/12/08 .................. 4.9%
GNMA CMO, 6.500%, 06/20/28 .................. 4.2%
FHLMC CMO, 6.500%, 01/25/15 ................. 3.7%
General Motors
Acceptance Corp., 5.750%, 11/10/03 .. 3.5%
FNMA CMO, 7.200%, 05/25/23 .................. 3.1%
FHLMC CMO, 6.500%, 01/25/15 ................. 2.4%
TOTAL ............................... 62.7%
*Unannualized (1) Assumes initial investment of $10,000 on inception date, April
30, 1993. 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 BOND FUND PORTFOLIO CREDIT QUALITY AS OF 4/30/99
- --------------------------------------------------------------------------------
[GRAPHIC OMITTED]
AAA (52.0%)
AA (5%)
A (24%)
BBB (11%)
BB (8%)
FREMONT MUTUAL FUNDS PAGES 18 AND 19
<PAGE>
- --------------------------------------------------------------------------------
FREMONT MONEY MARKET FUND
- --------------------------------------------------------------------------------
Norman Gee
Portfolio Manager
Fremont Investment Advisors, Inc.
[PHOTO OMITTED]
Norman Gee
- ------------
FUND PROFILE
- ------------
Fremont Money Market Fund invests primarily in high-quality short-term debt
securities (commercial paper) issued by U.S. corporations and U.S. subsidiaries
of foreign corporations. The Fund will also take small positions in other
investment-grade short-term debt instruments such as Yankee CDs (dollar
denominated certificates of deposit in foreign banks).
Portfolio Manager Norman Gee strives to add value through price-sensitive
trading and by identifying undervalued high quality money market securities. He
will also make conservative adjustments to the portfolio's average maturity
relative to the market in attempting to enhance total portfolio yield.
To Our Shareholders,
For the six month period ended April 30, 1999, the Fremont Money Market
Fund returned 2.41% compared to the IBC Money Market First Tier Taxable
Average's 2.19%. We are pleased to report the Fremont Money Market Fund once
again finished in the top quartile of comparable funds in the IBC taxable money
market fund universe.
Money market yields have been quite stable since the Federal Reserve rate
easings last Fall. The yield curve has been flat, offering little yield
advantage in securities with greater than three month maturities. At the end of
this reporting period, the Fund's average maturity was approximately 70 days,
modestly higher than our peer group average of about 60 days. With little
movement in short term interest rates, this has worked to our advantage.
Currently, the great debate is over whether the Federal Reserve will be
lowering or raising the Fed Funds Rate over the next six months. The Fed easing
camp points to historically high "real" rates of return (the spread between
interest rates and inflation), a still stagnant Asia and weakening European
economies as reasons enough for the Fed to lower rates. The Fed tightening side
argues that the persistent strength of the U.S. economy, low unemployment,
modestly rising commodities prices and increasing inflationary pressure will
force the Fed into a rate hike. We believe the Fed will simply sit on its hands
for the balance of the year--enjoying a still vibrant domestic economy with
inflation remaining under control as a result of continued economic weakness in
Asia and Europe. Looking farther out into the year 2000, we suspect the Fed may
have to institute a modest 25 basis point (0.25%) rate hike as Asia finally
begins recovering and European economies regain some momentum.
No Federal Reserve action should translate into the kind of stable money
market yields we've seen over the last six months. Ho Hum. The one thing that
could make money funds more exciting would be a correction in the U.S. stock
market--caused not by any global economic turmoil as was the case in 1998's
third quarter, but simply some profit taking by investors concerned over high
equities valuations.
In the absence of any real change in interest rates, we will continue to
plug along, attempting to add value to the money market investment process
through securities selection and by taking advantage of anomalies in the market.
One such anomaly is the "settlement" effect caused by banks having to settle up
with the Federal Reserve on alternating Wednesdays. With some liquidity drained
from the system every two weeks, companies needing to issue commercial paper on
"Fed Wednesdays" generally have to price it a basis point or two higher than
normal. This phenomena is clearly demonstrated by the modest uptick in money
market yields every other Wednesday. We come to work every second Wednesday
prepared to do enough buying to give us a little bit of a yield edge. It's been
working for years, and we expect it will continue to work for many more.
In conclusion, with the U.S. stock market indices once again setting
records, money market funds have once again become boring to many investors. Put
another way, cash is once again trash as it has been through most of this
historically lengthy bull market in stocks. Be that as it may, money funds
continue to provide an essential service to the economy by furnishing an orderly
market for corporations issuing short term debt to efficiently manage cash flows
and an equally important service to investors who desire income and security for
a portion of their assets.
Sincerely,
/s/ Norman Gee
Norman Gee
Portfolio Manager
- --------------------------------------------------------------------------------
GROWTH OF $10,000 (1)
[GRAPHIC OMITTED]
4/30/99
-------
FREMONT MONEY MARKET FUND $17,453
90-DAY U.S. T-BILLS $17,439
IBC FIRST TIER TAXABLE PRIME AVERAGE $16,736
AVERAGE ANNUAL RETURNS FOR PERIODS ENDED 4/30/99
1 YEAR 5 YEARS 10 YEARS SINCE INCEPTION (11/18/88)
- ---------------------------------------------------------
5.16% 5.32% 5.33% 5.48%
ANNAUL RETURNS
11/18/88-10/31/89* +8.52%
11/01/89-10/31/90 +7.99%
11/01/90-10/31/91 +6.51%
11/01/91-10/31/92 +3.73%
11/01/92-10/31/93 +2.66%
11/01/93-10/31/94 +3.49%
11/01/94-10/31/95 +5.84%
11/01/95-10/31/96 +5.34%
11/01/96-10/31/97 +5.39%
11/01/97-10/31/98 +5.45%
11/01/98-04/30/99* +2.41%
TOP TEN HOLDINGS
St. Paul Cos., CP ........................... 2.0%
Queen's Health Systems, Inc., CP ............ 2.0%
Transamerica Finance Corp., CP .............. 2.0%
BMW US Capital Corp., DN .................... 2.0%
Alcatel Alsthom, Inc., CP ................... 2.0%
HVB Finance, CP ............................. 2.0%
Standford, Leland Junior University, CP ..... 2.0%
Morgan (J.P.) & Co., Inc., CP ............... 2.0%
Caisse d'Amortissement
de la Dette Sociale, CP .................... 2.0%
FHLB, AN .................................... 1.4%
TOTAL ............................... 19.4%
*Unannualized (1) Assumes initial investment of $10,000 on inception date,
November 18, 1988. Performance data illustrated is historical. Past performance
is not predictive of future performance. 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. 90-Day T-Bill Index. An investment in Fremont Money Market Fund is neither
insured nor guaranteed by the FDIC or any other government agency. Although the
Fund seeks to preserve the net asset value at $1.00 per share, it is possible to
lose money by investing in the Fund.
- --------------------------------------------------------------------------------
FREMONT MONEY MARKET FUND GEOGRAPHIC DIVERSIFICATION AS OF 4/30/99
- --------------------------------------------------------------------------------
[GRAPHIC OMITTED]
United States (45%)
Switzerland (5%)
United Kingdom (11%)
Netherlands (6%)
Japan (5%)
Germany (13%)
Other (15%)
FREMONT MUTUAL FUNDS PAGES 20 AND 21
<PAGE>
- --------------------------------------------------------------------------------
FREMONT CALIFORNIA INTERMEDIATE TAX-FREE FUND
- --------------------------------------------------------------------------------
Arno A. Rayner & William C. Williams
Portfolio Co-Managers
Rayner Associates, Inc.
[PHOTO OMITTED]
Arno A. Rayner
- ------------
FUND PROFILE
- ------------
The Fremont California Intermediate Tax-Free Fund seeks double tax-free
income for California residents through investing in high credit quality
California municipal securities.
Portfolio Co-Managers Arno Rayner and William Williams believe active
duration management, opportunistic sector allocation, and individual security
selection can enhance municipal bond portfolio returns. Credit quality is always
first priority. The Fund holds only investment grade rated securities and
selective non-rated bonds, which after internal credit analysis are believed to
deserve an investment grade rating.
Founded in 1976, sub advisor Rayner Associates, Inc. manages over $135
million in fixed income assets for private clients.
To Our Shareholders,
In the six month period ended April 30, 1999, the Fremont California
Intermediate Tax Free Fund returned 1.36% compared to the Lehman Brothers
Municipal 5-Year State General Obligation (GO) Index's 1.91%.
During this reporting period, California municipal bond prices held steady
while Treasury securities declined. Consequently, the yield spread between
10-year AAA rated California munis and 10-year Treasuries widened from 37 basis
points (0.37%) to 94 basis points (0.94%). In essence, California municipals
went from being incredible bargains to simply good values relative to
Treasuries. Because California has one of the highest income tax rates in the
nation, California municipal securities still offer materially higher after-tax
yields for state residents in high income tax brackets.
The California economy is gaining momentum. Despite ongoing economic
weakness in Asia and Latin America, the Long Beach Port is still busy as can be.
In the San Francisco Bay area and Silicon Valley, the high tech boom has spawned
a commercial and residential real estate bonanza. Los Angeles east to San
Bernandino looks like a continuous construction site and San Diego is also
enjoying explosive growth. New job creation is strong, unemployment is
declining, personal income is rising, and for the first time since 1997, the
state's population is growing. We would characterize incoming Governor Gray
Davis as a fiscally responsible Democrat. Although most, if not all, of the
current budget surplus will likely be spent delivering on his campaign promises
to improve public education, the State's balance sheet should remain healthy.
All this is great news for the credit quality of California municipal bonds.
State of California general obligation bonds, which last year were upgraded from
A1 to AA3, could be upgraded again within the next year.
The new issues market has been very quiet, with demand far outstripping
supply. This has restrained yields. Considering the new governor's commitment to
improving public education and the need for substantial transportation
infrastructure funding, we expect increased issuance of school and highway
construction bonds in the year ahead. However, increased supply will likely be
soaked up by strong demand for municipal securities, continuing to dampen
yields.
We have been able to enhance our portfolio's yield by buying "odd lots" in
the new issue market. The big institutional investors generally buy new issues
in $1 million lots. The dealers are sometimes left with small pieces of these
offerings that they are willing to mark down to close out their inventory.
Rather than bidding on $1 million pieces of new issues, we have been waiting for
the dust to settle and then buying smaller pieces at discounted prices. By so
doing, we have been able to pick up 10-15 basis points in yield.
We also have been looking to improve total return by focusing on bonds we
believe most likely to be upgraded in the near future. Recently, we bought
California State Water Resource 5 1/8's of 2012 at a modest premium to face
value. These are currently rated AA and we think they deserve an AAA rating. If
they do get upgraded, the bonds should move a bit higher.
Currently, portfolio holdings have an average credit quality rating of AA2
by Moody's and AA by Standard & Poors. Because there has been a relatively
narrow spread between the yields of non-rated bonds versus investment grade
rated securities and between the highest and lowest investment grade rated
bonds, we have been able to maintain this high credit quality without
sacrificing much yield.
The yield curve has been flat, with intermediate bonds yielding almost as
much as longer maturities. This has helped our performance relative to other
California municipal bond funds that are permitted to have longer than 10-year
average maturity. Comparable yield with less interest rate risk is a very good
deal for shareholders.
In closing, we are quite pleased with first half fiscal 1999 returns.
California municipal securities materially outperformed Treasuries along the
maturity/duration spectrum. While California munis are no longer as cheap
relative to Treasuries as they were at the beginning of the reporting period,
they still offer significantly higher after-tax yields for California investors
in high income tax brackets. We strive to add value by securities selection and
yield enhancing trading strategies. At the close of first quarter 1999, the Wall
Street Journal gave the Fund its highest rating for trailing twelve month
performance--demonstrating that our efforts have been successful.
Sincerely,
/s/ Arno Rayner /s/ William Williams
Portfolio Co-Managers
Arno Rayner and William Williams
- --------------------------------------------------------------------------------
GROWTH OF $10,000 (1)
[GRAPHIC OMITTED]
4/30/99
-------
FREMONT CALIFORNIA INTERMEDIATE TAX-FREE FUND $17,183
LEHMAN MUNI 5-YEAR STATE G.O. INDEX $16,976
AVERAGE ANNUAL RETURNS FOR PERIODS ENDED 4/30/99
1 YEAR 5 YEARS SINCE INCEPTION (11/16/90)
- ----------------------------------------------
6.33% 6.21% 6.61%
ANNUAL RETURNS
11/16/90-10/31/91* +9.36%
11/01/91-10/31/92 +7.37%
11/01/92-10/31/93 +11.37%
11/01/93-10/31/94 -3.94%
11/01/94-10/31/95 +12.77%
11/01/95-10/31/96 +4.63%
11/01/96-10/31/97 +6.75%
11/01/97-10/31/98 +7.16%
11/01/98-04/30/99* +1.36%
TOP TEN HOLDINGS
Sacramento Municipal Utility District ....... 3.0%
Yucaipa School Facilities
Finance Authority .......................... 2.3%
East Bay Municipal Utility District
(EBMUD) Water System ....................... 2.3%
City of L.A., Wastewater System ............. 2.3%
Fremont Unified School District,
Alemeda County ............................. 1.9%
City of Industry, Urban Devel. Agency ....... 1.9%
City of Stockton, Wastewater System ......... 1.8%
Orange County Transportation Auth ........... 1.6%
California State Public Works Board,
Lease Revenue .............................. 1.6%
Santa Monica-Malibu Unified
School District ............................ 1.6%
TOTAL ............................... 20.3%
*Unannualized (1) Assumes initial investment of $10,000 on inception date,
November 16, 1990. 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 CALIFORNIA INTERMEDIATE TAX-FREE FUND
PORTFOLIO CREDIT QUALITY AS OF 4/30/99
- --------------------------------------------------------------------------------
[GRAPHIC OMITTED]
AAA (60.1%)
AA (21.4%)
A (16.9%)
Not Rated (1.6%)
FREMONT MUTUAL FUNDS PAGES 22 AND 23
<PAGE>
FREMONT GLOBAL FUND
APRIL 30, 1999 (UNAUDITED)
STATEMENT OF INVESTMENTS IN SECURITIES AND NET ASSETS
Country Value
Shares Security Description Code (Note 1)
- --------------------------------------------------------------------------------
STOCKS 47.0%
BUSINESS EQUIPMENT & SERVICES 2.3%
50 Flughafen Wien AG AS $ 2,172
10,100 Laidlaw, Inc. CN 63,985
6,597 Moore Corp. Ltd. CN 65,288
2,526 Nova Chemical Corp. CN 53,195
* 65 ISS International Service System AS DK 3,820
195 Kesko Oyj FI 3,094
115 Tieto Corp. (Class B) FI 4,585
34,500 Deutsche Telekom GM 1,373,808
1,000 Sap Ag GM 320,997
700 SAP AG (Preferred) GM 259,124
35,000 Sap Ag, Adr GM 1,098,125
200 Csk Corp. JP 5,967
2,000 Dai Nippon Printing Co. Ltd. JP 31,712
5,000 Fujitsu Ltd. JP 85,690
* 4,000 Itochu Corp. JP 10,559
1,000 Kokuyo Co. Ltd. JP 15,043
4,000 Marubeni Corp. JP 9,252
4,000 Mitsubishi Corp. JP 26,482
1,000 Mitsubishi Logistics Corp. JP 12,680
4,000 Mitsui & Co., Ltd. JP 29,332
3,000 Sumitomo Corp. JP 22,175
2,000 Toppan Printing Co. Ltd. JP 24,069
100 Trans Cosmos, Inc. JP 5,238
2,137 Getronics NV NL 87,809
135 Hagemeyer Nv NL 4,569
100 Oce Nv NL 2,940
606 TNT Post Group NV NL 16,344
120 Vedior NV NL 2,703
225 Merkantildata Asa NO 2,249
14,900 Philippine Long Distance Telephone Co. PH 481,972
2,333 INAPA-Investimentos
Participacoes e Gestao, S.A. PT 19,074
4,305 Jeronimo Martins SGPS, SA PT 141,832
* 1,366 Jeronimo Martins (Rights) PT 43,776
600,000 Informatics Holdings Ltd. SG 240,779
5,260 Autopistas Concesionaria Espanola SA SP 66,536
200 Prosegur, Cia De Segurid SA SP 2,316
* 1,000 Sociedade General de Aguas de Barcelona, SA SP 56,584
160 Wm-data AB (Class B) SW 5,882
130 Adecco Sa SZ 65,582
* 8 Sgs Societe Generale de Surveillance
Holding SA (Class B) SZ 7,190
20 Sgs Societe Generale de Surveillance
Holding SA (Class R) SZ 4,474
48,800 Invensys PLC UK 250,752
125,000 Misys PLC UK 1,173,017
46,100 Rentokil Initial PLC UK 268,944
* 19,000 AES Corp. US 950,000
* 20,000 AmeriLink Corp. US 137,500
* 12,000 Arguss Holdings, Inc. US 196,500
* 15,000 Ault, Inc. US 163,125
* 5,000 Ceridian Corp. US 183,125
4,000 Cintas Corp. US 275,000
* 7,000 Computer Sciences Corp. US 416,938
* 8,100 Corporate Executive Board Co. US 227,813
* 2,100 Critical Path, Inc. US 208,950
* 99,000 EarthShell Corp. US 965,250
8,000 Equifax, Inc. US 287,500
* 5,000 Fiserv, Inc. US 292,813
BUSINESS EQUIPMENT & SERVICES (cont.)
5,000 Interpublic Group of Cos., Inc. US $ 387,813
* 3,900 Metzler Group, Inc. US 108,713
7,900 National Data Corp. US 364,388
* 21,800 NewsEdge Corp. US 185,300
* 7,600 Nielsen Media Research, Inc. US 208,050
* 12,700 Nova Corp. US 330,200
* 8,000 Office Depot, Inc. US 176,000
5,000 Omnicom Group, Inc. US 362,500
* 10,700 PAREXEL International Corp. US 257,469
8,900 Paychex, Inc. US 454,456
7,000 SunGard Data Systems, Inc. US 223,563
* 110,700 TeleTech Holding, Inc. US 733,388
13,000 Waste Management, Inc. US 734,500
------------
15,302,570
------------
CAPITAL GOODS 1.5%
30 Va Technologie AG AS 2,856
5 Bekaert NV BE 2,390
130 FLS Industries AS (Class B) DK 3,145
30 NKT Holding AS DK 1,943
20 Kone Corp. (Class B) FI 2,242
200 Valmet Oyj FI 2,454
3,350 Continental AG GM 8,379
1,650 Heidelberger Zement AG GM 110,117
250 Linde AG GM 152,037
3,000 MAN AG GM 94,078
6,150 Mannesmann AG GM 805,913
9,300 Siemens AG GM 685,579
29,966 CRH PLC IR 591,084
8,250 Dcc Plc IR 74,168
3,000 Magneti Marelli Spa IT 4,252
4,085 Pirelli Spa IT 12,486
1,000 Amada Co. Ltd. JP 6,285
2,000 Bridgestone Corp. JP 53,635
1,000 Daikin Indsutries Ltd. JP 10,442
2,000 Denso Corp. JP 40,645
1,000 Ebara Corp. JP 12,160
1,000 Fujikura Ltd. JP 5,213
4,000 Kawasaki Heavy Industries Ltd. JP 10,090
2,000 Komatsu Ltd. JP 11,917
1,000 Koyo Sieko Co. Ltd. JP 6,746
3,000 Kubota Corp. JP 8,523
1,000 Minebea Co. Ltd JP 9,679
8,000 Mitsubishi Heavy Industries Ltd. JP 35,064
1,000 Ngk Insulators, Ltd. JP 12,194
1,000 Ngk Spark Plug Co. Ltd. JP 10,517
200 SMC Corp. JP 18,454
2,000 Sumitomo Electric Industries JP 24,220
2,000 The Furukawa Electric Co. JP 8,749
1,000 Toyoda Automatic Loom Works Ltd. JP 19,149
60,000 Cemex SA de CV (Class B), ADR MX 558,456
370,000 IJM Corp. Berhad MY 247,313
130 Kvaerner ASA NO 2,598
90 Tomra Systems Asa NO 3,575
4,000 Sembcorp Industries Ltd. SG 4,981
5,575 Samsung Electronics Ltd., GDS (1/2 Voting) SK 245,439
1,315 Grupo Dragados SA SP 43,950
1,230 Fomento de Construcciones y Contratas SA SP 75,192
1,436 Zardoya Otis SA SP 37,059
21,755 ABB AB (Class A) SW 303,163
8,390 ABB AB (Class B) SW 116,918
The accompanying notes are an integral part of these financial statements.
24 FREMONT MUTUAL FUNDS
<PAGE>
FREMONT GLOBAL FUND
APRIL 30, 1999 (UNAUDITED)
Country Value
Shares Security Description Code (Note 1)
- --------------------------------------------------------------------------------
CAPITAL GOODS (cont.)
265 Atlas Copco AB (Class A) SW $ 7,134
130 Atlas Copco Ab (Class B) SW 3,423
410 Sandvic AB (Class A) SW 9,239
145 Sandvik AB (Class B) SW 3,276
200 SKF AB (Class A) SW 3,238
135 SKF AB (Class A) SW 2,322
285 Abb Ag (Bearer Shares) SZ 415,997
45 ABB AG (Registered Shares) SZ 13,137
25 Georg Fischer AG SZ 9,315
5 Schindler Holding AG SZ 7,364
5 Schindler Holding AG (Registered) SZ 7,905
* 30 Sulzer AG SZ 19,070
33,000 General Electric Co. US 3,491,937
* 20,000 IMPCO Technologies, Inc. US 170,000
19,000 Sundstrand Corp. US 1,363,250
* 8,500 Zomax, Inc. US 190,188
------------
10,212,244
------------
CONSUMER DURABLES 2.6%
10 Sa D'Ieteren SA BE 4,463
2,312 Magna International, Inc. (Class A) CN 137,365
40 Bang & Olufsen Holding AS (Class B) DK 2,727
8,701 DaimlerChrysler AG GM 851,668
5,500 Volkswagen AG GM 389,162
1,800 Volkswagen AG (Preferred) GM 77,103
66,000 Waterford Wedgwood PLC IR 64,221
625 Bulgari Spa IT 3,768
* 7,985 Fiat Spa IT 26,772
* 2,210 Fiat SPA (Preferred) IT 3,810
* 1,705 Fiat Spa RNC IT 3,057
1,000 Casio Computer Co. Ltd. JP 6,956
1,000 Citizen Watch Co. Ltd. JP 8,297
1,000 Fuji Photo Film JP 37,796
2,000 Honda Motor Co. JP 88,163
5,000 Matsushita Electric Industrial Co. Ltd. JP 95,118
49,000 Murata Manufacturing Co. Ltd. JP 2,804,693
* 6,000 Nissan Motor Co. Ltd. JP 23,030
1,000 Pioneer Electric Corp. JP 19,024
10,000 Rohm Co. Ltd. JP 1,206,788
5,000 Sanyo Electric Co. Ltd. JP 18,730
300 Sega Enterprises Ltd. JP 5,343
3,000 Sharp Corp. JP 35,198
1,000 Sony Corp. JP 93,442
23,000 Sony Corp., ADR JP 2,127,500
10,000 Toyota Motor Corp. JP 284,098
1,000 Yamaha Corp. JP 10,618
7,924 Koninklijke (Royal) Philips Electronics NV NL 683,036
600 Fisher & Paykel Industries Ltd. NZ 2,197
1,000 Cycle & Carriage Ltd. SG 5,960
12,295 Electrolux AB SW 249,347
9,515 Securitas AB (Class B) SW 141,059
300 Volvo AB (Class A) SW 7,774
660 Volvo AB (Class B) SW 17,416
115 The Swatch Group AG SZ 17,503
30 The Swatch Group AG (Class B) SZ 21,412
16,200 GKN plc UK 276,559
* 3,800 Autoweb.Com, Inc. US 99,275
9,000 Federal-Mogul Corp. US 394,875
48,500 Ford Motor Co. US 3,100,969
28,800 General Motors Corp. US 2,561,400
8,000 Harley-Davidson, Inc. US 477,000
CONSUMER DURABLES (cont.)
7,000 Maytag Corp. US $ 478,625
* 30,000 Miller Industries, Inc. US 151,875
8,000 Whirlpool Corp. US 531,000
------------
17,646,192
------------
CONSUMER NON-DURABLES 3.1%
45 Austria Tabakwerke AG AS 2,760
5,100 George Weston Ltd. CN 202,589
9,100 The Seagram Company Ltd. CN 517,293
75 Carlsberg AS (Class A) DK 3,490
60 Carlsberg AS (Class B) DK 2,835
125 Danisco AS DK 5,853
110 Cultor Oyj FI 2,024
400 Raisio Group PLC FI 3,659
9,100 Lvmh FR 2,442,727
440 Lvmh, Adr FR 22,935
18,500 Societe BIC SA FR 1,038,982
18,700 Greencore Group PLC IR 71,201
13,365 Kerry Group PLC IR 175,705
3,875 Benetton Group Spa IT 6,967
400 Marzotto Spa IT 3,372
3,120 Parmalat Finanziaria Spa IT 4,521
2,000 Ajinomoto Co., Inc. JP 23,147
1,000 Asahi Breweries Ltd. JP 13,040
2,000 Kao Corp. JP 50,786
1,000 Katokichi Co. Ltd. JP 14,163
1,000 Kikkoman Corp. JP 6,805
3,000 Kirin Brewery Co. Ltd. JP 33,941
1,000 Meija Seika JP 6,026
1,000 Nippon Meat Packers, Inc. JP 13,434
1,000 Onward Kashiyama Co. Ltd. JP 12,235
1,000 Snow Brand Milk Products Co. Ltd. JP 5,196
1,000 Takara Shuzo Co. Ltd. JP 7,023
1,000 Yamazaki Baking Co. Ltd. JP 12,663
400 Heineken NV NL 20,095
14,207 Unilever NV NL 973,687
1,025 Lion Nathan Ltd. NZ 2,579
100 Unicer-Uniao Cervejeira SA PT 2,274
2,000 Fraser & Neave Ltd. SG 8,852
135 Azucarera Ebro Agricolas SA SP 2,386
* 200 El Aguila SA SP 1,864
3,290 Tabacalera SA SP 64,130
875 Swedish Match AB SW 2,875
1,062 Nestle SA SZ 1,966,757
* 84,931 President Enterprises, GDR TW 764,379
19,200 Bass PLC UK 303,689
25,950 British American Tobacco PLC UK 217,435
17,300 Cadbury Schweppes PLC UK 232,042
59,334 Diageo PLC UK 688,006
47,100 Unilever PLC UK 418,890
17,000 Anheuser Busch Cos., Inc. US 1,243,125
* 20,400 Audiovox Corp. US 130,050
22,000 ConAgra, Inc. US 547,250
18,700 Craftmade International, Inc. US 245,438
* 15,000 e4L, Inc. US 111,563
13,300 Eastman Kodak Co. US 992,513
4,000 General Mills, Inc. US 292,500
16,000 Heinz (H.J.) & Co. US 747,000
* 61,200 NPC International, Inc. US 1,101,600
29,000 Philip Morris Cos., Inc. US 1,016,813
16,000 Procter & Gamble Co. US 1,501,000
The accompanying notes are an integral part of these financial statements.
FREMONT MUTUAL FUNDS 25
<PAGE>
FREMONT GLOBAL FUND
APRIL 30, 1999 (UNAUDITED)
Country Value
Shares Security Description Code (Note 1)
- --------------------------------------------------------------------------------
CONSUMER NON-DURABLES (cont.)
5,000 Quaker Oats Co. US $ 322,813
* 12,000 RARE Hospitality International, Inc. US 216,000
* 5,500 Scotts Co. US 226,188
* 12,000 Select Comfort Corp. US 194,250
* 19,000 Smithfield Foods, Inc. US 448,875
* 14,700 Steven Madden Ltd. US 132,300
* 4,400 Suiza Foods Corp. US 165,275
10,000 SYSCO Corp. US 296,875
* 26,500 U.S. Home & Garden, Inc. US 145,750
10,000 UST, Inc. US 278,750
------------
20,731,240
------------
CONSUMER SERVICES 1.5%
* 27,500 Cinar Corp. (Class B) CN 574,063
15,500 The Thompson Corp. CN 467,091
2,175 Hachette Filipacchi Medias FR 502,865
2,800 Havas Advertising SA FR 568,593
16,500 Lagardere S.C.A. FR 654,072
1,000 Television Broadcasts Ltd. HK 4,064
20,560 Independent Newspapers PLC IR 101,115
250 Jurys Hotel Group Plc IR 2,353
2,570 Mediaset SPA IT 22,289
280 Mondadori (Arnoldo) Editore SPA IT 4,975
200 Namco Ltd. JP 4,525
20,000 Secom Co. JP 1,954,326
100 Toho Co. Ltd. JP 14,171
15,893 Elsevier NV NL 237,851
6,616 Wolters Kluwer NV NL 288,293
200 Schibsted Asa NO 2,486
1,000 Singapore Press Holdings Ltd. SG 14,754
80 Sol Melia Sa SP 2,985
* 460 TelePizza SA SP 2,919
2 Kuoni Reisen AG SZ 7,085
10 Moevenpick Holding AG SZ 5,117
29,100 British Sky Broadcasting Group PLC UK 257,166
18,800 Granada Group PLC UK 399,103
25,200 Reed International PLC UK 228,780
26,100 Reuters Group PLC UK 353,012
23,800 Scottish & Newcastle PLC UK 297,407
* 3,500 Action Performance Companies, Inc. US 118,563
* 31,300 American Classic Voyages Co. US 559,488
* 10,900 Carmike Cinemas, Inc. US 235,031
22,000 Cash America International, Inc. US 280,500
* 29,000 Cendant Corp. US 522,000
* 13,000 Fairfield Communities, Inc. US 167,375
* 300 First Cash, Inc. US 3,281
* 550 Go2net, Inc. US 84,425
* 15,000 Loews Cineplex Entertainment Corp. US 189,375
17,000 Royal Caribbean Cruises Ltd. US 627,938
* 14,000 United Retail Group,Inc. US 151,375
------------
9,910,811
------------
ENERGY 1.9%
55 OMV AG AS 5,323
585 PetroFina SA BE 353,911
17,395 Eni Spa IT 114,618
4,000 Nippon Mitsubishi Oil Co. JP 17,867
48,550 Royal Dutch Petroleum Co. NL 2,829,325
485 Norsk Hydro ASA NO 21,718
* 180 Petroleum Geo - Services ASA NO 3,033
200 Smedvig ASA (Class A) NO 2,588
ENERGY (Cont.)
1,200 Fletcher Challenge Energy NZ $ 2,871
16,035 Repsol SA SP 261,175
81,926 British Petroleum PLC UK 1,552,103
13,200 Burmah Castrol PLC UK 225,982
24,000 Ameren Corp. US 928,500
18,000 DQE, Inc. US 741,375
32,000 FPL Group, Inc. US 1,804,000
* 26,100 Global Industries, Ltd. US 321,356
7,000 Kansas City Power & Light Co. US 187,250
* 13,400 Marine Drilling Company, Inc. US 230,313
* 6,800 Newpark Resources, Inc. US 62,475
70,000 Puget Sound Energy, Inc. US 1,728,125
16,000 Sempra Energy US 332,000
10,000 Sonat, Inc. US 357,500
23,000 Transocean Offshore, Inc. US 682,813
------------
12,766,221
------------
FINANCIAL SERVICES (BANKS) 4.7%
4,500 Bank Austria AG AS 279,426
10,000 Westpac Banking Corp. Ltd. AU 1,559,001
645 KBC Bancassurance Holding NV BE 40,044
1,215 Den Danske Bank Group DK 140,061
115 Unidanmark AS DK 7,905
2,000 Merita PLC (Class A) FI 11,951
8,637 Bayerische Vereinsbank AG GM 570,933
8,888 Deutsche Bank AG GM 513,731
9,600 Dresdner Bank AG GM 414,260
4,200 Hang Seng Bank HK 49,717
64,881 Allied Irish Banks PLC IR 1,049,907
3,910 Banca Commerciale Italia IT 32,215
5,035 Banca Intesa SPA IT 26,839
1,610 Banca Intesa SPA (Savings Shares) IT 4,155
575 Banca Popolare di Milano IT 4,896
1,240 Mediobanca SPA IT 15,607
75,050 Instituto Bancario San Paolo di Torino IT 1,222,892
10,570 Unicredito Italian Spa IT 53,661
6,000 Asahi Bank Ltd. JP 31,728
12,000 The Bank Of Tokyo-Mitsubishi Ltd. JP 177,197
21,000 The Bank of Tokyo-Mitsubishi Ltd., ADR JP 307,125
3,000 The Bank Of Yokohama Ltd. JP 8,422
2,000 The Chiba Bank Ltd. JP 8,397
9,000 The Fuji Bank Ltd. JP 70,295
1,000 The Gunma Bank Ltd. JP 7,291
6,000 The Industrial Bank Of Japan Ltd. JP 50,031
2,000 The Joyo Bank Ltd. JP 7,961
3,000 The Mitsubishi Trust & Banking Corp. JP 32,935
11,000 The Sakura Bank Ltd. JP 42,497
1,000 The 77 Bank Ltd. JP 9,009
2,000 The Shizuoka Bank Ltd. JP 23,583
8,000 The Sumitomo Bank Ltd. JP 108,343
6,000 The Tokai Bank Ltd. JP 39,221
* 5,000 The Yasuda Trust & Banking Co. Ltd. JP 6,453
1,800 Abn Amro Holding Nv NL 42,930
1,150 Christiania Bank Og Kreditkasse NO 4,420
1,340 Den Norske Bank ASA NO 4,842
11,930 Banco Comerical Portugues, SA PT 336,768
255 Banco Espirito Santo e Comercial de Lisboa PT 6,133
4,770 BPI-SGPS SA (Registered Shares) PT 128,647
1,000 Development Bank of Singapore SG 10,623
220,594 Lloyds TSB Group PLC SG 1,158,519
The accompanying notes are an integral part of these financial statements.
26 FREMONT MUTUAL FUNDS
<PAGE>
FREMONT GLOBAL FUND
APRIL 30, 1999 (UNAUDITED)
Country Value
Shares Security Description Code (Note 1)
- --------------------------------------------------------------------------------
FINANCIAL SERVICES (BANKS) (Cont.)
17,118 Overseas-Chinese Banking
Corp. Ltd. (Foreign Registered) SG $ 2,098,049
215,899 United Overseas Bank Ltd.
(Foreign Registered) SG 1,669,092
50,400 Banco Bilbao Vizcaya SA SP 754,806
35,596 Banco Santander Central Hispano SA SP 774,045
13,455 Corporacion Bancaria de Espana SA SP 316,775
9,665 ForeningsSparbanken AB SW 212,058
1,280 Skandinaviska Enskilda Banken SW 16,699
70 Svenska Handelsbanken AB SW 2,379
470 Svenska Handelsbanken AB (Class A) SW 17,614
2,025 Credit Suisse Group (Registered Shares) SZ 401,852
1,625 Ubs Ag SZ 552,203
* 300,000 Bangkok Bank Ltd. (Foreign Registered) TH 897,574
* 24,285 Thai Farmers Bank (Warrants 09/15/02) TH 3,535
20,100 Abbey National PLC UK 454,501
20,700 Barclays PLC UK 654,497
25,400 Halifax plc UK 782,639
13,200 HSBC Holdings plc UK 953,837
78,375 HSBC Holdings PLC (United Kingdom Shares) UK 501,639
24,285 Royal Bank of Scotland Group PLC UK 329,681
36,800 Bank One Corp. US 2,171,200
12,600 BankAmerica Corp. US 907,200
13,000 BankBoston Corp. US 637,000
25,000 Chase Manhattan Corp. US 2,068,750
15,000 Firstar Corp. US 450,938
23,000 MBNA Corp. US 648,313
6,000 Mellon Bank Corp. US 445,875
9,000 Morgan (J.P.) & Co., Inc. US 1,212,750
15,000 National City Corp. US 1,076,250
15,000 PNC Bank Corp. US 868,125
20,000 Wells Fargo Co. US 863,750
------------
31,364,197
------------
FINANCIAL SERVICES (OTHER) 4.0%
15 Generali Holding Vienna AG AS 3,070
* 1,560 Fortis (B) BE 52,385
* 7,812 Fortis (B) - Strip VVR BE 83
* 868 Fortis (B) (Rights) BE 4,462
45 Pohjola Group Insurance Corp. FI 2,135
40 Pohjola Group Insurance Corp. (Class A) FI 1,887
200 Sampo Insurance Co. Ltd. (Class A) FI 6,306
20,572 Axa FR 2,658,825
* 114 Axa - Ctf de Valeur (Warrant) FR 573
750 Axa Colonia Konzern AG FR 71,391
700 Allied Zurich PLC GM 355,574
750 AMB Aachener & Muenchener Beteiligungs AG GM 77,441
1,560 Muenchener
Rueckversicherungs-Gesellschaft AG GM 319,262
* 1,560 Muenchener Rueckversicherungs-
Gesellschaft AG(New Registered) GM 315,962
* 60 Muenchener Rueckversicherungs-
Gesellschaft AG (Warrant) GM 2,094
24,915 Irish Life PLC IR 223,986
8,205 Irish Life & Permanent Plc IR 118,888
2,235 Assicurazioni Generali IT 87,108
8,720 Instituto Nazionale delle Assicurazioni IT 23,057
915 Riunione Adriatica de Sicurta SPA IT 9,629
395 Riunione Adriatica de Sicurta SPA
(Savings Shares) IT 3,614
265 Societa Assicuratrice Industriale IT 3,265
10,160 Unione Immobiliare SPA IT 5,824
400 Acom Co. Ltd. JP 30,002
FINANCIAL SERVICES (OTHER) (cont.)
400 Credit Saison Co. Ltd. JP $ 8,179
4,000 Daiwa Securities Co. Ltd. JP 24,471
2,000 Mitsui Marine And Fire Insurance Co. Ltd. JP 11,096
1,000 The Nichido Fire & Marine Insurance Co. Ltd. JP 5,741
160,000 The Nikko Securities Co. Ltd. JP 918,500
200 Orix Corp. JP 16,107
2,000 The Sumitomo Marine & Fire
Insurance Co. Ltd. JP 13,576
167,000 The Nomura Securities Co. Ltd. JP 1,802,606
4,000 The Tokio Marine & Fire Insurance Co. Ltd. JP 46,629
740 Aegon NV NL 71,026
3,950 Aegon NV (New York Shares) NL 951,250
1,707 ING Groep NV NL 105,256
* 590 Storebrand ASA NO 4,271
100 Companhia de Seguros Tranquilidade PT 2,565
1,100 Commercial Union PLC SP 275,252
1,215 Corporacion Mapfre SP 24,724
3,260 Vallehermoso SA SP 32,411
470 Fastighets AB Balder SW 5,017
175 Om Gruppen Ab SW 2,231
1,115 Skandia Forsakrings Ab SW 21,555
390 Schweizerische Rueckversicherungs-
Gesellschaft (Swiss Registered) SZ 854,017
360 Zurich Allied AG SZ 232,151
25,950 Allianz AG UK 1,260,417
15,600 Land Securities PLC UK 205,226
78,800 Legal & General Group plc UK 227,797
27,400 Prudential Corp. PLC UK 391,086
26,615 Royal & Sun Alliance Insurance Group PLC UK 226,645
27,000 Alliance Capital Management L.P. US 749,250
10,000 Allstate Corp. US 363,750
4,000 American Express Co. US 522,750
7,000 American International Group, Inc. US 822,063
11,800 Associates First Capital Corp. US 522,888
9,000 Capital One Financial Corp. US 1,563,188
35,500 Citigroup, Inc. US 2,671,375
* 5,400 Concord EFS, Inc. US 180,225
10,000 Federal Home Loan Mortgage Corp. US 627,500
21,000 Federal National Mortgage Association US 1,489,688
9,000 MGIC Investment Corp. US 437,063
12,900 Morgan Stanley, Dean Witter and Co. US 1,279,519
27,000 Provident Cos., Inc. US 1,063,125
5,000 Providian Financial Corp. US 645,313
* 7,000 Robert Half International, Inc. US 167,125
10,000 The Charles Schwab Corp. US 1,097,500
17,000 Washington Mutual, Inc. US 699,125
------------
27,018,072
------------
HEALTH CARE 4.9%
315 Ucb Sa BE 14,659
165 Novo Nordisk AS (Class B) DK 16,203
70 Instrumentarium Corp. (Class A) FI 2,295
1,650 AstraZeneca Group PLC GM 1,390,502
47,700 Beiersdorf AG GM 116,923
2,300 Grupo Casa Autrey SA de CV, ADR GM 603,125
1,386 Merck KGaA GM 78,573
76,067 Schering AG GM 188,910
1,000 Chugai Pharmaceutical Co. Ltd. JP 11,900
1,000 Daiichi Pharmaceutical Co. Ltd. JP 16,258
1,000 Eisai Co. Ltd. JP 18,730
1,000 Kyowa Hakko Kogyo Co. Ltd. JP 5,791
89,000 Sankyo Co. Ltd. JP 1,868,385
The accompanying notes are an integral part of these financial statements.
FREMONT MUTUAL FUNDS 27
<PAGE>
FREMONT GLOBAL FUND
APRIL 30, 1999 (UNAUDITED)
Country Value
Shares Security Description Code (Note 1)
- --------------------------------------------------------------------------------
HEALTH CARE (cont.)
1,000 Shionogi & Co. Ltd. JP $ 8,900
1,000 Shiseido Co. Ltd. JP 15,755
1,000 Taisho Pharmaceutical Co. JP 30,756
2,000 Takeda Chemical Industries JP 86,989
200 The Uni-charm Corp. JP 9,068
1,000 Yamanouchi Pharmaceutical Co. Ltd. JP 31,678
96,500 Glaxo Wellcome PLC MX 1,406,926
200 Aker RGI ASA NO 2,627
150 Fabrica Espanola de Productos
Quimicos y Farmaceuticos SA SP 1,950
50 Novartis AG (Bearer Shares) SZ 73,179
1,856 Novartis AG (Registered Shares) SZ 2,718,830
217 Roche Holding AG SZ 2,553,862
12 Roche Holidng AG (Bearer Shares) SZ 211,684
35,698 SmithKline Beecham PLC UK 1,005,592
12,000 Abbott Laboratories US 581,250
* 12,700 ArthroCare Corp. US 219,075
6,000 Becton Dickinson & Co. US 223,125
3,500 Biogen, Inc. US 332,719
20,000 Boston Scientific Corp. US 851,250
24,000 Bristol-Myers Squibb Co. US 1,525,500
5,000 Cardinal Health, Inc. US 299,063
7,000 Centocor, Inc. US 310,625
* 28,100 Cytyc Corp. US 549,707
* 12,900 EndoSonics Corp. US 65,306
4,000 Forest Laboratories, Inc. (Class A) US 178,000
* 8,000 Fusion Medical Technologies, Inc. US 56,500
* 33,700 Gene Logic, Inc. US 143,225
* 65,100 Genelabs Technologies, Inc. US 109,856
* 20,800 Genentech, Inc. US 1,760,200
* 14,500 General Nutrition Companies, Inc. US 240,156
* 9,400 Getty Images, Inc. US 244,400
* 7,400 Gilead Sciences, Inc. US 340,863
10,000 Guidant Corp. US 536,875
46,000 Healthsouth Rehabilitation Corp. US 618,125
3,000 Immunex Corp. US 286,500
* 6,000 IMS Health, Inc. US 180,000
9,000 Johnson & Johnson US 877,500
11,000 Lilly (Eli) & Co. US 809,875
23,000 McKesson HBOC, Inc. US 805,000
* 45,100 Mediconsult.com, Inc. US 538,381
5,900 Medtronic, Inc. US 424,431
28,000 Merck & Co. US 1,967,000
* 6,700 NeoPharm, Inc. US 114,738
* 4,500 Novoste Corp. US 100,125
* 40,900 Orthodontic Centers of America, Inc. US 506,138
* 3,700 Oxford Health Plans, Inc. US 73,769
* 3,500 Perclose, Inc. US 133,000
10,000 Pfizer, Inc. US 1,150,625
* 4,600 Quintiles Transnational Corp. US 186,588
* 12,100 SangStat Medical Corp. US 175,450
18,000 Schering Plough Corp. US 869,625
19,000 Warner-Lambert Co. US 1,290,813
* 15,600 Wesley Jessen VisionCare, Inc. US 477,750
------------
32,643,178
------------
MULTI-INDUSTRY 0.8%
50 Groupe Bruxell Lambert SA BE $ 9,175
4,197 Bct. Telus Communications, Inc. CN 104,199
150 Metra Oyj (Class B) FI 3,736
9,000 Hutchison Whampoa Ltd. HK 80,701
3,500 Swire Pacific Ltd. HK 19,643
50,000 Larsen & Toubro Ltd., GDR IN 462,500
10,775 Montedison Spa IT 10,348
1,600 Snia Spa IT 2,065
* 248,000 Renong Berhad
(Convertible Loan Stock 05/21/01) MY 40,136
* 155,000 Renong Berhad (Warrants Exp. 11/21/00) MY 18,151
325 Orkla ASA (Class A) NO 5,455
85 Sonae Investimentos - Sociedade
Gestorade Participacoes SA PT 3,038
2,000 Keppel Corp. SG 5,713
6,000 Singapore Technology Engineering Ltd. SG 6,444
330 Corporacion Financiera Alba SA SP 50,626
240 Trelleborg AB (Class B) SW 2,220
50 Alusuisse Lonza Group AG SZ 59,862
20,100 Allied-Signal, Inc. US 1,180,875
* 28,000 CBS Corp. US 1,275,750
8,000 Corning, Inc. US 458,000
18,400 Minnesota Mining & Manufacturing Co. US 1,637,600
------------
5,436,237
------------
RAW MATERIALS 1.8%
50 Boehler - Uddeholm AG AS 2,942
120 RHI AG AS 3,667
15 Wienerberger Baustoffindustrie AG AS 2,872
500,000 North Ltd. AU 1,058,160
45 Cimenteries Cbr Cementbedriven BE 4,188
20 Glaverbel SA BE 2,200
180 Solvay SA BE 12,565
70 Union Miniere SA BE 2,673
7,564 Alcan Aluminum Ltd. CN 238,301
9,500 Barrick Gold Corp. CN 191,614
4,419 Canadian Occidental Petroleum Ltd. CN 66,734
100,000 Falconbridge Ltd. CN 1,489,624
7,010 Inco Ltd. CN 133,949
10,100 Noranda, Inc. CN 134,888
7,300 Placer Dome, Inc. CN 102,993
1,700 Potash Corporation of Saskatchewan, Inc. CN 103,390
400 Outokumpo Oyj FI 4,590
350 Rautaruukki Oyj FI 2,480
570 Upm - Kymmene Oyj FI 17,272
9,100 Basf Ag GM 397,497
10,450 Bayer AG GM 442,098
2,500 Degussa-Huels AG GM 109,996
4,000 Preussag AG GM 211,318
* 4,000 Preussag AG (Rights) GM 2,919
8,000 Thyssen Krupp AG GM 166,686
* 7,186,000 PT Dynaplast ID 604,242
87,395 Jefferson Smurfit Group PLC IR 238,478
400 Burgo (Catiere) SPA IT 2,856
360 Italcementi SPA IT 4,169
4,000 Asahi Chemical Industry Co. Ltd. JP 23,298
3,000 Asahi Glass Co. Ltd. JP 22,979
2,000 Dainippon Ink & Chemical, Inc. JP 7,274
1,000 Inax Corp. JP 7,065
The accompanying notes are an integral part of these financial statements.
28 FREMONT MUTUAL FUNDS
<PAGE>
FREMONT GLOBAL FUND
APRIL 30, 1999 (UNAUDITED)
Country Value
Shares Security Description Code (Note 1)
- --------------------------------------------------------------------------------
RAW MATERIALS (cont.)
1,000 Kaneka Corp. JP $ 8,087
9,000 Kawasaki Steel Corp. JP 17,272
1,000 Kuraray Co. Ltd. JP 11,397
5,000 Mitsubishi Chemical Corp. JP 15,462
3,000 Mitsubishi Materials Corp. JP 7,216
2,000 Mitsubishi Rayon Co. Ltd. JP 5,296
1,000 Mitsui Mining & Smelting Co. Ltd. JP 5,179
2,000 Nippon Paper Industries Co. Ltd. JP 10,559
17,000 Nippon Steel Corp. JP 38,181
10,000 Nkk Corp. JP 7,961
3,000 Oji Paper Co. Ltd. JP 17,976
131,000 Sekisui Chemical Co. Ltd. JP 876,078
1,000 Shin-etsu Chemical Co. JP 31,846
4,000 Sumitomo Chemical Co. JP 17,867
1,000 Sumitomo Forestry Co. Ltd. JP 7,542
9,000 Sumitomo Metal Industries Ltd. JP 11,992
2,000 Taiheiyo Cement Corp. JP 6,470
2,000 Teijin Ltd. JP 8,414
4,000 Toray Industries, Inc. JP 21,219
2,000 Tosoh Corp. JP 3,956
1,000 Tostem Corp. JP 18,563
1,000 Toto Ltd. JP 8,230
1,000 Toyo Seikan Kaisha Ltd. JP 20,365
140,000 Kimberly-Clark de Mexico SA MX 542,934
370 Akzo Nobel NV NL 16,729
131 Buhrmann NV NL 2,397
60 Koninklijke Hoogovens NV NL 2,408
150 Dyno ASA NO 2,633
70 Norske Skogindustrier ASA NO 2,502
3,105 Carter Holt Harvey Ltd. NZ 4,548
1,600 Fletcher Challenge Building NZ 2,648
175 Cimpor-Cimentos De Portugal PT 4,812
* 400 Portucel Industrial-Empressa
Produtora de Celulose SA PT 2,268
31,126 Hansol Paper Ltd., GDR SK 246,985
115 Acerinox SA SP 3,475
* 200 Asturiana de Zinc SA SP 2,712
120 Empresa Nacional de Celulosas SA SP 2,243
75 Portland Valderrivas SA SP 2,388
250 Uralita SA SP 2,340
200 Viscofan Industria Navarra
De Envolturas Celulosicas SA SP 2,464
270 Aga Ab (Class A) SW 3,554
235 Aga Ab (Class B) SW 3,108
150 Granges AB SW 2,544
160 Ssab Svenskt Stal AB (Class A) SW 2,040
200 Ssab Svenskt Stal AB (Class B) SW 2,538
5,896 Stora Enso Oyj (Class A) SW 66,082
10,940 Stora Enso Oyj (Class R) SW 125,209
425 Svenska Cellulosa AB (Class B) SW 10,862
10 Forbo Holding AG (Class R) SZ 4,166
80 Holderbank Financiere Glarus AG SZ 23,827
1,429 Holderbank Financiere Glarus AG (Class B) SZ 1,723,968
20 Sika Finanz AG SZ 5,937
19,805 BOC Group PLC UK 313,418
18,000 Imperial Chemical Industries, Inc. UK 192,942
31,600 Rio Tinto PLC UK 553,437
39,000 AK Steel Holding Corp. US 1,014,000
------------
11,887,225
------------
REIT 0.0%
9,400 IndyMac Mortgage Holdings, Inc. US $ 155,100
------------
155,100
------------
RETAIL 4.6%
10 Colruyt NV BE 6,848
* 115 Delhaize "Le Lion" SA BE 10,071
100 Stockmann AB (Class A) FI 1,872
4,000 Carrefour SA FR 3,172,950
17,500 Etablissemets Economiques du
Casino Guicahrd-Perrachon SA FR 1,067,962
1,000 Adidas-Saloman AG GM 98,679
38,000 Ito-Yokado Co. Ltd. GM 2,334,297
27,700 Kingfisher plc GM 414,747
108,105 Tesco PLC GM 320,337
28,000 Fyffes Plc IR 63,671
118,200 Grupo Elektra SA de CV, GDR IR 834,788
480 La Rinascente SPA IT 4,087
200 Aoyama Trading Co. JP 5,565
* 2,000 Daiei, Inc. JP 6,319
1,000 Hankyu Department Stores, Inc. JP 6,202
1,000 Isetan Co. Ltd. JP 9,395
1,000 Ito-yokado Co. Ltd. JP 61,429
31,800 J Sainsbury PLC JP 201,629
1,000 Jusco Co. Ltd. JP 19,946
1,000 Marui Co. JP 16,602
1,000 Mycal Corp. JP 6,202
* 1,000 Seiyu Ltd. JP 5,992
1,000 Takashimaya Co. Ltd. JP 8,171
1,000 The Daimaru, Inc. JP 4,408
* 200,000 Cifra SA de CV (Series C) MX 373,247
* 50,599 Cifra SA de CV (Series V) MX 96,176
5,000 Hornbach Holding AG MX 189,319
12,238 Koninklijke Ahold NV NL 454,965
47,300 Marks & Spencer PLC NL 324,249
80 Cortefiel SA SP 2,200
450 Hennes & Mauritz AB (Class B) SW 38,800
30 Valora Holding AG SZ 7,006
6,800 Boots Co. PLC UK 222,093
200 Karstadt AG UK 92,016
3,780 Metro AG UK 275,456
19,000 The Great Universal Stores PLC UK 216,495
* 18,800 Abercrombie & Fitch Co. (Class A) US 1,788,350
* 6,000 Bed Bath & Beyond, Inc. US 214,125
* 8,000 Best Buy Co., Inc. US 382,000
* 14,200 Cameron Ashley Building Products, Inc. US 156,200
* 21,000 Consolidated Stores Corp. US 725,313
9,000 Dollar General Corp. US 315,563
9,000 Family Dollar Stores, Inc. US 217,125
* 7,100 Gadzooks, Inc. US 67,450
13,500 Gap, Inc. US 898,594
* 25,000 Genesco, Inc. US 271,875
* 110,000 Hanover Direct, Inc. US 309,375
* 14,200 Hines Horticulture, Inc. US 120,700
36,000 Home Depot, Inc. US 2,157,750
* 23,400 Image Entertainment, Inc. US 213,525
* 11,000 Just For Feet, Inc. US 138,875
* 6,000 Kohls Corp. US 398,625
17,000 Lowe's Cos., Inc. US 896,750
* 20,000 Movie Gallery, Inc. US 117,500
The accompanying notes are an integral part of these financial statements.
FREMONT MUTUAL FUNDS 29
<PAGE>
FREMONT GLOBAL FUND
APRIL 30, 1999 (UNAUDITED)
Country Value
Shares Security Description Code (Note 1)
- --------------------------------------------------------------------------------
RETAIL (cont.)
16,600 Northern Technologies International Corp. US $ 99,600
* 6,000 Outback Steakhouse, Inc. US 214,875
* 4,500 Pacific Sunwear of California, Inc. US 166,922
* 55,000 Photon Dynamics, Inc. US 550,000
* 38,700 Rent-Way, Inc. US 1,054,575
* 40,450 Staples, Inc. US 1,213,500
* 26,000 Starbucks Corp. US 960,375
6,000 Tandy Corp. US 434,625
36,000 Texas Industries, Inc. US 1,111,500
37,000 The TJX Companies, Inc. US 1,232,563
* 10,200 Tuesday Morning Corp. US 198,900
* 16,500 Urban Outfitters, Inc. US 319,688
52,000 Wal Mart Stores, Inc. US 2,392,000
* 5,700 Zales Corp. US 215,531
------------
30,528,540
------------
SHELTER 0.4%
5,000 Cheung Kong (Holdings) Ltd. HK 45,479
7,000 New World Development Co. HK 17,340
5,000 Sun Hung Kai Properties Ltd. HK 43,866
10,000 Wharf (Holdings) Ltd. HK 24,514
455 Sirti SPA IT 2,603
1,000 Daiwa House Industry Co. Ltd. JP 11,942
2,000 Kajima Corp. JP 6,034
1,000 Kandenko Co. Ltd. JP 6,319
1,000 Kinden Corp. JP 12,755
3,000 Mitsubishi Estate Co. Ltd. JP 30,698
2,000 Mitsui Fudosan Co. Ltd. JP 18,437
1,000 Nishimatsu Construction Co. Ltd. JP 5,816
2,000 Obayashi Corp. JP 11,012
2,000 Sekisui House Ltd. JP 22,409
2,000 Shimizu Corp. JP 7,844
60 Ihc Caland NV NL 2,722
2,000 City Developments Ltd. SG 13,337
3,000 Dbs Land Ltd SG 5,559
100 Acs, Actividades de Construccion y
Servicios SA SP 3,006
150 Inmobiliaria Urbis SA SP 2,237
95 Metrovacesa SA SP 2,075
245 Drott AB SW 2,034
245 Skanska AB (Class B) SW 9,719
12,000 Centex Corp. US 438,750
22,000 Marriott International, Inc. US 921,250
25,000 Masco Corp US 737,375
* 4,900 Westower Corp. US 156,800
------------
2,561,932
------------
TECHNOLOGY 7.9%
30 Barco NV BE 5,419
17,200 Bombardier, Inc. (Class B) CN 266,228
* 2,200 Newbridge Networks Corp. CN 81,364
2,635 Nokia Oyj FI 203,305
2,000 Johnson Electric Holdings Ltd. HK 5,974
300 Advantest Corp. JP 22,954
52,000 Canon, Inc. JP 1,272,491
2,000 Dainippon Screen Manufacturing Co. JP 9,721
700 Fanuc Ltd. JP 30,505
200 Hirose Electric Co. Ltd. JP 18,605
8,000 Hitachi Ltd. JP 58,462
500 Kyocera Corp. JP 29,709
TECHNOLOGY (cont.)
* 7,000 Mitsubishi Electric Corp. JP $ 24,463
4,000 NEC Corp. JP 47,802
1,000 Nikon Corp. JP 13,744
1,000 Olympus Optical Co. Ltd. JP 12,303
1,000 Omron Corp. JP 13,786
63,000 Tokyo Electron Ltd. JP 3,590,195
3,000 Yokogawa Electric Corp. JP 16,241
* 40,531 Samsung Elec Ltd., GDR SK 873,443
50 Samsung Electronics Ltd., GDR (144a) SK 2,234
53,350 Telefonaktiebolaget LM Ericsson (Class B) SW 1,401,483
30,400 British Aerospace PLC UK 227,464
52,200 General Electric PLC UK 550,716
* 8,000 3Com Corp. US 209,000
* 6,000 ADC Telecommunications, Inc. US 286,875
* 4,000 Altera Corp. US 289,000
* 17,000 America Online, Inc. US 2,426,750
* 7,000 Analog Devices, Inc. US 245,875
* 38,500 Anaren Microwave, Inc. US 784,438
* 10,900 ANTEC Corp. US 295,663
* 7,000 Ascend Communications, Inc. US 676,375
* 2,000 At Home Corp. (Series A) US 287,875
* 20,900 BMC Software, Inc. US 900,006
37,100 Boeing Co. US 1,507,188
* 10,000 Brooktrout Technology, Inc. US 149,375
* 11,000 Cadence Design Systems, Inc. US 149,188
* 16,200 CBT Group PLC, ADR US 251,100
20,000 Cisco Systems, Inc. US 2,281,250
* 5,800 Citrix Systems, Inc. US 246,500
24,000 Compaq Computers Corp. US 535,500
16,000 Computer Associates International, Inc. US 683,000
29,200 Compuware Corp. US 711,750
* 3,000 Comverse Technology, Inc. US 192,375
11,200 Cordant Technologies, Inc. US 516,600
* 38,000 Dell Computer Corp. US 1,565,125
* 10,800 Digital Lava, Inc. US 103,950
* 30,800 Elantec Semiconductor, Inc. US 242,550
* 4,000 Electronic Arts, Inc. US 203,250
* 10,000 EMC Corp. US 1,089,375
* 21,700 Emulex Corp. US 957,513
* 700 Exigent International, Inc. US 3,631
* 16,500 FORE Systems, Inc. US 556,875
* 3,000 Gateway 2000, Inc. US 198,563
* 8,000 Gulfstream Aerospace Corp. US 390,000
14,000 Hewlett-Packard Co. US 1,104,250
* 3,700 Hi/fn, Inc. US 199,800
* 19,500 Information Resource Engineering, Inc. US 390,000
44,000 Intel Corp. US 2,692,250
* 8,200 Integral Systems, Inc. US 184,500
10,000 International Business Machines Corp. US 2,091,875
* 2,000 Intuit, Inc. US 172,250
* 17,500 Kopin Corp. US 330,313
* 2,000 Lexmark International Group, Inc. US 247,000
5,000 Linear Technology Corp. US 284,375
5,000 Maxim Integrated Products, Inc. US 280,000
* 22,900 MDSI Mobile Data Solutions, Inc. US 400,750
* 4,400 Micrel, Inc. US 259,050
* 57,200 Microsoft Corp. US 4,651,075
* 4,400 Netopia, Inc. US 98,725
* 6,600 Network Associates, Inc. US 87,450
* 3,400 New Era of Networks, Inc. US 127,713
The accompanying notes are an integral part of these financial statements.
30 FREMONT MUTUAL FUNDS
<PAGE>
FREMONT GLOBAL FUND
APRIL 30, 1999 (UNAUDITED)
Country Value
Shares Security Description Code (Note 1)
- --------------------------------------------------------------------------------
TECHNOLOGY (cont.)
* 3,700 Oak Industries, Inc. US $ 154,475
* 29,500 Oracle Systems Corp. US 798,344
* 47,200 OrCAD, Inc. US 365,800
* 53,700 Orckit Communications Ltd. US 1,288,800
* 12,000 Parametric Technology Corp. US 156,750
* 19,500 Pinnacle Holdings, Inc. US 399,750
* 7,400 Pixar, Inc. US 307,100
* 7,000 PLATINUM Technology International, Inc. US 178,500
* 7,900 Powerwave Technologies, Inc. US 239,963
* 1,900 Proxim, Inc. US 73,150
* 1,500 Puma Technology, Inc. US 8,063
* 13,000 Sanmina Corp. US 862,875
* 5,700 Sawtek, Inc. US 200,925
* 4,000 Seagate Technology, Inc. US 111,500
* 4,000 Siebel Systems, Inc. US 153,750
* 3,700 Softnet Systems, Inc. US 120,713
* 9,000 Solectron Corp. US 436,500
* 5,000 Sterling Commerce, Inc. US 156,563
* 10,000 Sun Microsystems, Inc. US 598,125
* 7,000 Tellabs, Inc. US 766,938
7,000 Texas Instruments, Inc. US 714,875
* 2,000 Uniphase Corp. US 242,750
6,300 United Technologies Corp. US 912,713
* 3,700 Verisign, Inc. US 425,500
* 3,000 Veritas Software Corp. US 213,000
* 3,600 Vitesse Semiconductor Corp. US 166,725
* 6,600 Xilinx, Inc. US 301,125
* 5,000 Yahoo!, Inc. US 873,438
------------
52,545,212
------------
TRANSPORTATION 0.5%
80 Austrian Airlines Osterreichische
Luftverkehrs AG AS 2,563
60 Compagnie Maritime Belge SA BE 2,634
2 Dampskibsselskabet 1912 (Class B) DK 18,074
2 Dampskibsselskabet Svendborg AS (Class B) DK 25,475
100 Finnlines Oyj FI 2,835
* 800,000 Eurotunnel SA FR 1,269,180
8,400 Deutsche Lufthansa AG GM 197,408
8,000 Cathay Pacific Airways HK 12,850
* 13,345 Ryanair Holdings PLC IR 117,149
3,345 Alitalia SPA IT 10,366
10 East Japan Railway Co. JP 59,082
2,000 Hankyu Corp. JP 8,414
* 5,000 Japan Airlines Co. Ltd. JP 15,755
4,000 Kinki Nippon Railway Co. JP 45,255
3,000 Mitsui Osk Lines Ltd. JP 6,914
2,000 Nagoya Railroad Co. Ltd. JP 6,805
3,000 Nippon Express Co. Ltd. JP 19,610
3,000 Nippon Yusen Kabushiki Kaisha JP 11,691
2,000 Odakyu Electric Railway Co. Ltd. JP 7,207
3,000 Tobo Railway Co. Ltd. JP 9,177
3,000 Tokyu Corp. JP 8,272
1,000 Yamato Transport Co. Ltd. JP 16,736
100 KLM NL 3,035
200 Bergesen D.Y. ASA (Class A) NO 2,998
200 Bergesen D.Y. ASA (Class B) NO 2,972
300 Sas Norge ASA NO 2,998
3,730 Brisa-Auto Estradas de Portugal SA PT 158,196
TRANSPORTATION (cont.)
2,000 Singapore Airlines Ltd. SG $ 18,413
80 SAirGroup SZ 18,316
17,916 The Peninsular and Oriental Steam
Navigation Co. UK 260,185
22,687 BAA plc UK 236,249
1,000 Air Express International Corp. US 21,875
16,000 Burlington Northern Sante Fe Corp. US 586,000
6,000 Kansas City Southern Industries, Inc. US 357,375
------------
3,542,064
------------
UTILITIES 4.5%
* 65 Oesterreichische
Elektrizitaetswirtschafts AG AS 10,175
* 1,232 Electrabel SA BE 406,674
* 2,019 Tractebel BE 277,815
15,000 Enersis SA, ADR CL 287,813
6,800 Transalta Corp. CN 97,802
12,681 TransCanada Pipelines Ltd. CN 174,569
80 GN Store Nord AS DK 2,732
3,090 Tele Danmark AS (Class B) DK 318,824
940 Sonera Group Oyj FI 18,691
8,500 Rwe AG GM 391,066
7,550 Veba AG GM 413,237
500 Viag AG GM 252,514
5,500 Clp Holdings Ltd. HK 29,520
15,000 Hong Kong & China Gas Co. Ltd. HK 21,095
26,000 Hong Kong Telecommunications Ltd. HK 69,941
1,380 Edison Spa IT 12,260
1,510 Italgas Spa IT 6,724
6,510 Olivetti Spa IT 22,721
1,965 Telecom Italia SPA (Savings Shares) IT 10,578
8,040 Telecom Italia Spa IT 85,630
* 3,420 Telecom Italia Mobile (TIM) SPA
(Savings Shares) IT 11,466
* 284,460 Telecom Italia Mobile (TIM) SPA IT 1,696,845
2,500 Kansai Electric Power Co., Inc. JP 49,340
157 Nippon Telegraph & Telephone Corp. JP 1,710,455
6,000 Osaka Gas Co. Ltd. JP 20,616
1,500 Tohoku Electric Power Co., Inc. JP 22,690
4,000 Tokyo Electric Power JP 85,481
7,000 Tokyo Gas Co. Ltd. JP 18,479
605 KPN NV NL 25,275
3,720 Telecom Corp. of New Zealand Ltd. NZ 19,341
97,766 Manila Electric Co. (Class B) PH 372,809
11,320 EDP-Electricidade de Portugal SA PT 213,113
11,515 Portugal Telecom SA PT 480,456
13,000 Singapore Telecommunications Ltd. SG 24,090
20,000 Korea Electric Power Corp., ADR SK 330,000
16,375 Endesa SA SP 364,392
2,525 Gas Natural SDG SA SP 203,897
15,355 Iberdrola SA SP 215,183
* 17,774 Telefonica SA SP 833,721
* 17,774 Telefonica SA (Rights) SP 16,543
5,260 Union Electrica Fenosa SA SP 70,041
* 225 NetCom AB (Class B) SW 7,232
560 Swisscom AG SZ 205,727
55,800 Bg Plc UK 311,848
89,368 British Telecommunications PLC UK 1,499,063
35,400 Cable & Wireless PLC UK 502,141
23,476 National Power PLC UK 188,304
The accompanying notes are an integral part of these financial statements.
FREMONT MUTUAL FUNDS 31
<PAGE>
FREMONT GLOBAL FUND
APRIL 30, 1999 (UNAUDITED)
Country Value
Shares Security Description Code (Note 1)
- --------------------------------------------------------------------------------
UTILITIES (cont.)
20,900 Scottish Power plc UK $ 171,255
16,800 United Utilities PLC UK 190,211
43,821 Vodafone Group PLC UK 802,007
* 25,100 AirTouch Communications, Inc. US 2,343,713
6,000 ALLTEL Corp. US 404,625
3,000 Ameritech Corp. US 205,313
29,700 AT&T Corp. US 1,499,850
17,000 Bell Atlantic Corp. US 979,625
30,200 BellSouth Corp. US 1,351,450
* 14,900 Calpine Corp. US 635,113
24,400 Coastal Corp. US 933,300
76,000 Empire District Electric Co. US 1,667,250
32,000 Lucent Technologies, Inc. US 1,924,000
* 30,100 MCI WorldCom, Inc. US 2,473,844
6,800 Newpark Resources, Inc. US 62,475
* 3,000 Qualcomm, Inc. US 600,000
* 4,000 Qwest Communications International, Inc. US 341,750
22,000 SBC Communications, Inc. US 1,232,000
------------
30,226,710
------------
TOTAL STOCKS (Cost $273,105,283) 314,477,745
------------
Value
Face Amount Security Description (Note 1)
- --------------------------------------------------------------------------------
BONDS 40.0%
COLLATERIZED MORTGAGE OBLIGATIONS 0.3%
1,175,000 American Southwest Financial Securities Corp.
CMO, 7.400%, 11/17/04 1,198,535
200,000 Bank of America Mortgage Securities CMO,
1999-5, 7.400%, 05/28/29 196,374
285,000 FHLMC CMO, 2155 PG REMIC, 6.000%, 05/15/29 277,875
70,000 PSB Lending Home Loan Owner Trust CMO,
6.830%, 05/20/18 71,182
------------
1,743,966
------------
CORPORATE BONDS 13.2%
US$ 3,000,000 AES China Generating Co., 10.125%, 12/15/06 2,091,480
12,000 AES Corp., 10.250%, 07/15/06 12,720
2,000,000 Asia Pulp & Paper International
Finance, 10.250%, 10/01/00 1,832,560
2,615,000 Associates Corp., 6.000%, 03/15/00 2,627,500
4,000,000 Atlantic City Electric, 7.520% 05/99 4,003,800
13,000 Beckman Instruments, Inc., 7.100%, 03/04/03 12,882
3,000,000 BellSouth Telecommunications, Inc.,
6.375%, 06/01/28 2,820,060
3,000,000 BP America, Inc., 5.750%, 7/30/01 3,008,850
12,000 Buckeye Technologies, Inc., 8.000%, 10/15/10 12,030
7,000 Building Materials Corp., 7.750%, 07/15/05 6,860
7,000 Building Materials Corp., 8.000%, 10/15/07 6,895
15,000 Calpine Corp., 7.875%, 04/01/08 15,150
4,000,000 Caterpillar Financial Service Corp.,
5.900%, 12/15/99 4,016,120
3,000,000 Cemex SA de CV, 10.750%, 07/15/00 3,112,500
15,000 Century Communications, 0.000%, 03/15/03 10,800
15,000 CMS Energy Corp., 8.125%, 05/15/02 15,470
15,000 CSC Holdings, Inc., 9.875%, 04/01/23 16,875
3,000,000 Donaldson Lufkin & Jenrette, Inc.,
6.500%, 06/01/08 2,959,920
CORPORATE BONDS (cont.)
15,000 Echostar DBS Corp., 9.250%, 02/01/06 $ 15,525
4,000,000 Export-Import Bank of Korea, 7.100%, 03/15/07 3,933,400
4,000,000 Finova Capital Corp., 6.280%, 11/01/99 4,018,480
15,000 Flag Ltd., 8.250%, 01/30/08 14,888
4,000,000 Ford Brasil LTDA, 9.250%, 01/22/07 3,700,000
3,000,000 Ford Motor Credit, 6.250%, 11/08/00 3,027,660
9,000 Garden State Newspapers, 8.750%, 10/01/09 9,146
2,500,000 General Electric Capital Corp., 8.850%, 03/01/07 2,937,575
3,000,000 Grupo Televisa (callable 05/15/01 @106.625),
0.000% to 05/15/01, 13.250% thereafter, 05/15/08 2,588,100
3,000,000 Guangdong Enterprises, 8.875%, 05/22/07 902,460
12,000 Hollinger International Publishing,
8.625%, 03/15/05 12,420
2,000,000 Household Finance Co, 6.125%, 02/27/03 2,000,500
14,000 Intermedia Communication, 8.500%, 01/15/08 13,860
15,000 Jones Intercable, Inc., 8.875%, 04/01/07 16,388
15,000 K Mart Corp., 9.350%, 01/02/20 16,463
4,000,000 Lehman Brothers Holdings, Inc.,
6.840%, 10/07/99 4,020,320
3,000,000 Lehman Brothers Holdings, Inc.,
7.375%, 05/15/07 3,058,890
3,000,000 McKesson Corp., 6.600%, 03/01/00 3,018,570
15,000 Mcleodusa, Inc., 7.125%, 02/15/09 14,850
10,000 MGM Grand, Inc., 6.950%, 02/01/05 9,444
9,000 Navistar International, 8.000%, 02/01/08 9,315
10,000 Niagara Mohawk Power, 7.875%, 04/01/24 10,489
4,000,000 Nova Gas Transmission, 7.250%, 07/06/99 4,014,480
12,000 Orange PLC, 8.000%, 08/01/08 12,360
9,000 Polymer Group, Inc., 9.000%, 07/01/07 9,225
2,000,000 Rabobank Nederland, 6.250%, 12/30/99 2,011,300
3,000,000 Roche Holdings, 2.750%, 04/14/00 2,928,150
15,000 Rogers Cantel, Inc., 8.300%, 10/01/07 15,825
3,000,000 Salomon, Inc., 6.700%, 07/05/00 3,036,360
9,000 Silgan Holdings, Inc., 9.000%, 06/01/09 9,270
4,000,000 Sony Corp., 6.125%, 03/04/03 4,036,188
30,000 Sprint Capital Corp., 5.875%, 05/01/04 29,851
3,250,000 Sunamerica, Inc., 6.200%, 10/31/99 3,263,033
3,000,000 Sunamerica, Inc., 6.750%, 10/01/07 3,107,460
2,100,000 Tribune Co., 5.300%, 04/17/00 2,100,126
9,000 TV Guide, Inc., 8.125%, 03/01/09 9,180
15,000 Unisys Corp., 12.000%, 04/15/03 16,575
4,000,000 Washington Mutual Inc., 6.750%, 05/15/99 4,001,560
6,000 World Color Press, Inc., 8.375%, 11/15/08 6,120
------------
88,538,278
------------
FOREIGN BONDS 20.4%
ARS 1,227,637 Republic of Argentina, 2.878%, 04/01/01 1,091,470
Government of Australia
AUS$ 10,000 7.500%, 09/15/09 7,636
600,000 8.750%, 08/15/08 490,283
2,000,000 10.000%, 10/15/02 1,527,388
4,000,000 Queensland Treasury Corp., 8.000%, 09/14/07 3,036,716
Government of Canada
CAN$ 4,000,000 6.000%, 06/01/08 2,903,911
960,000 6.000%, 06/01/08 696,939
800,000 6.500%, 06/01/04 582,914
4,000,000 8.000%, 06/01/23 3,679,200
2,000,000 Japan Highway Public Corp.,
7.875%, 09/27/02 1,471,954
2,000,000 Oesterreichische Kontrollbank
(Republic of Austria),9.000%, 06/19/02 1,512,842
The accompanying notes are an integral part of these financial statements.
32 FREMONT MUTUAL FUNDS
<PAGE>
FREMONT GLOBAL FUND
APRIL 30, 1999 (UNAUDITED)
Value
Face Amount Security Description (Note 1)
- --------------------------------------------------------------------------------
FOREIGN BONDS (Cont.)
2,000,000 Republic Of Finland, 9.500%, 09/15/04 $ 1,623,040
2,000,000 Tokyo Electric Power, 10.500%, 06/14/01 1,508,938
DM 6,000,000 United Mexican States, 8.125%, 09/10/04 3,569,014
Kingdom of Denmark
DKK 20,000,000 6.000%, 11/15/02 3,092,249
6,500,000 7.000%, 11/15/07 8,262,045
300,000 Unikredit Realkredit, 5.000%, 10/01/29 40,101
Government of Italy
EURO 190,000 6.500%, 11/01/27 243,757
2,324,056 6.750%, 02/01/07 2,926,540
4,601,627 Caisse D'Amort Dette, 5.125%, 10/25/08 5,255,777
2,000,000 Depfa Pfandbrief, 4.500%, 11/12/02 2,211,758
3,000,000 Deutsche Telecom, 5.250%, 05/20/08 3,404,734
4,601,627 Deutschland Republic, 5.625%, 01/04/28 5,441,206
2,000,000 European Investment Bank,
6.000%, 11/26/04 3,327,469
Republic of France
3,048,980 5.250%, 04/25/08 3,550,454
3,048,980 6.000%, 10/25/25 3,739,102
3,373,471 8.500%, 10/25/19 5,332,303
1,200,000 8.500%, 10/25/19 1,896,790
Netherlands Government
2,000,000 3.750%, 07/15/09 2,074,052
1,000,000 3.750%, 07/15/09 1,037,026
450,000 5.750%, 02/15/07 538,529
500,000 7.500%, 04/15/10 686,944
(pound)
2,500,000 Powergen, 8.500%, 07/03/06 4,579,894
2,906,913 Republic Of Austria, 5.625%, 07/15/07 3,451,123
3,208,097 Government of Spain, 6.000%, 01/31/08 3,872,545
1,533,876 Treuhandanstalt, 6.500%, 04/23/03 1,828,823
U.K. Treasury
2,000,000 8.500%, 12/07/05 3,880,064
2,000,000 9.000%, 07/12/11 4,473,187
GRD
1,000,000,000 Hellenic Republic, 8.800%, 06/19/07 3,812,385
(Y) 84,000,000 Japan-164, 4.100%, 12/22/03 812,933
NOK 1,200,000 European Investment Bank, 5.375%, 08/28/07 159,274
3,700,000 Government of Norway, 5.500%, 05/15/09 503,453
NZ$ 7,000,000 Inter-American Development Bank,
5.750%, 04/15/04 3,861,889
2,000,000 International Bank of Reconstruction &
Development, 7.250%, 04/09/01 1,156,954
1,000,000 Government of New Zealand,
7.000%, 07/15/09 610,990
7,000,000 Ontario (Province of), 6.250%, 12/03/08 3,825,300
Government of Sweden
SEK 40,000,000 6.000%, 02/09/05 5,317,697
7,500,000 6.500%, 05/05/08 1,047,863
Ontario (Province of)
US$ 2,000,000 7.000%, 08/04/05 2,120,000
1,000,000 7.000%, 08/04/05 1,060,000
3,000,000 Republic of Argentina, 7.700%, 08/15/99 3,007,500
Republic Of Kazakhstan
2,000,000 8.375%, 10/02/02 1,792,040
2,000,000 9.250%, 12/20/99 1,945,000
2,000,000 9.250%, 12/20/99 1,945,000
4,000,000 United Mexican States, 11.500%, 05/15/26 4,760,000
------------
136,586,991
------------
U.S. GOVERNMENT & AGENCY BONDS 6.1%
FHLB
US$ 3,000,000 5.125%, 09/15/03 $ 2,946,090
3,000,000 5.375%, 03/02/01 3,004,230
(pound)
2,000,000 5.625%, 06/10/03 3,247,378
US$ 3,000,000 6.450%, 04/29/09 2,983,110
FNMA
1,250,000 5.500%, 05/17/29 1,176,563
2,000,000 5.750%, 02/15/08 1,988,120
3,000,000 5.750%, 02/15/08 2,982,180
3,000,000 6.000%, 02/19/04 2,981,250
U.S. Treasury Bonds
150,000 4.750%, 11/15/08 143,250
5,000,000 6.250%, 08/15/23 5,212,500
U.S. Treasury Notes
4,200,000 5.625%, 05/15/08 4,263,000
5,000,000 6.500%, 10/15/06 5,329,700
4,000,000 6.625%, 05/15/07 4,310,000
------------
40,567,371
------------
TOTAL BONDS (Cost $ 267,980,568) 267,436,605
------------
Shares/ Value
Face Amount Security Description (Note 1)
- --------------------------------------------------------------------------------
SHORT-TERM SECURITIES 14.0%
6,088,123 SSgA Prime Money Market Fund 6,088,123
$ 2,700,000 Alcoa, Inc., CP, 4.770%(a), 06/18/99 2,682,828
2,700,000 Associates Corp., CP, 4.900%(a), 05/03/99 2,699,265
2,700,000 AT&T Capital Corp., CP, 4.730%(a), 05/27/99 2,690,777
700,000 BP America, Inc., CP, 4.740%(a), 05/18/99 698,433
2,700,000 Commercial Credit Corp., CP, 4.780%(a), 06/10/99 2,685,660
2,700,000 Ford Motor Credit Corp., CP, 4.760%(a), 06/16/99 2,683,578
1,000,000 Ford Motor Credit Corp., CP, 4.790%(a), 07/19/99 989,489
2,700,000 General Electric Credit Corp., CP,
4.750%(a), 05/14/99 2,695,369
2,700,000 GMAC Corp., CP, 4.780%(a), 05/21/99 2,692,830
2,700,000 Houshold Finance, CP, 4.780%(a), 05/14/99 2,695,340
2,700,000 Int'l Lease Finance, CP, 4.780%(a), 05/24/99 2,691,755
18,400,000 Koch Industries, Inc., CP, 4.930%(a), 05/03/99 18,394,960
2,700,000 Lucent Technologies, CP, 4.780%(a), 06/10/99 2,685,660
9,000,000 Merrill Lynch & Co., Inc., CP, 4.770%(a), 05/04/99 8,996,423
2,700,000 Prudential Financial Corp., CP,
4.800%(a), 06/23/99 2,680,920
2,700,000 Shell Oil Co., CP, 4.750%(a), 06/29/99 2,678,981
10,000,000 Smithkline Beecham Corp., CP, 4.920%(a), 05/03/99 9,997,267
2,700,000 Toyota Motor Credit Corp., CP, 4.740%(a), 06/25/99 2,680,448
2,700,000 USAA Capital Corp., CP, 4.780%(a), 06/21/99 2,681,717
2,700,000 Xerox Corp., CP, 4.790%(a), 06/11/99 2,685,271
1,200,000 FHLB, DN, 4.690%(a), 05/24/99 1,196,401
2,200,000 FHLB, DN, 4.670%(a), 08/02/99 2,173,459
+ 4,565,000 U.S. Treasury Bill, 4.370%(a), 06/17/99 4,538,955
------------
TOTAL SHORT-TERM SECURITIES ($93,383,909) 93,383,909
------------
TOTAL INVESTMENTS (Cost $634,469,760), 101.0% 675,298,259
------------
OTHER ASSETS AND LIABILITIES, NET, (1.0)% (6,940,875)
------------
NET ASSETS, 100.0% $668,357,384
============
The accompanying notes are an integral part of these financial statements.
FREMONT MUTUAL FUNDS 33
<PAGE>
FREMONT INTERNATIONAL GROWTH FUND
APRIL 30, 1999 (UNAUDITED)
STATEMENT OF INVESTMENTS IN SECURITIES AND NET ASSETS
Country Value
Shares Security Description Code (Note 1)
- --------------------------------------------------------------------------------
STOCKS 95.8%
BUSINESS EQUIPMENT & SERVICES 2.8%
*6,000 Teleglobe Inc. CN $ 176,495
93,100 Invensys PLC UK 478,381
5,166 Reuters Group PLC, ADR UK 422,966
------------
1,077,842
------------
CAPITAL GOODS 5.8%
27,000 Bombardier, Inc. (Class B) CN 417,916
6,800 Siemens AG GM 501,284
8,000 Fuji Machine MFG. Co. Ltd. JP 285,607
10,000 Murata Manufacturing Co. Ltd. JP 572,386
4,000 Thk Co. Ltd. JP 68,385
14,000 ABB AB (Series B) SW 195,095
7,400 Ericsson (L.M.) Telephone Co., ADR SW 199,800
------------
2,240,473
------------
CONSUMER DURABLES 5.7%
1,400 Peugeot SA FR 232,471
300 Bayerische Motoren Werke AG GM 212,905
*70,000 Fiat SPA IT 234,693
*52,000 Mitsubishi Motors Corp. JP 216,585
77,000 Nissan Motor Co. Ltd. JP 295,546
8,400 Sony Corp. JP 784,915
16,000 Suzuki Motor Co. Ltd. JP 227,949
------------
2,205,064
------------
CONSUMER NON-DURABLES 9.0%
45,000 Coca-Cola Amatil Ltd. AU 213,444
700 Groupe Danone FR 187,310
27,000 Asahi Breweries Ltd. JP 352,080
6,000 Nikon Corp. JP 82,464
3,400 Nintendo Co. Ltd. JP 317,134
2,800 Sony Music Entertainment (Japan), Inc. JP 204,148
5,000 Uni-Charm Corp. JP 226,692
9,000 PanAmerican Beverages (Class A) MX 199,688
5,800 Heineken NV NL 291,383
700 Heineken Holding NV (Class A) NL 26,098
10,000 Orkla ASA (Series A) NO 167,843
25,795 South African Breweries PLC SA 213,578
200 Compagnie Financiere Richemont AG SZ 340,342
100 Nestle SA (Registered Shares) SZ 185,194
21,000 Cadbury Schweppes PLC UK 281,669
16,300 Reckitt & Coleman PLC UK 194,774
------------
3,483,841
------------
CONSUMER SERVICES 2.5%
25,000 News Corp. Ltd. AU 209,383
14,500 The Thompson Corp. CN 436,956
36,000 EMI Group PLC UK 304,104
------------
950,443
------------
ENERGY 5.0%
52,455 Broken Hill Proprietary Co. Ltd. AU 592,668
34,000 Woodside Petroleum Ltd. AU 231,605
* 7,000 Talisman Energy, Inc. CN 185,938
1,200 Total Cie Francaise des
Petroles SA (Class B) FR 164,486
48,000 ENI SPA IT 316,280
ENERGY (cont.)
4,900 Norsk Hydro ASA NO $ 219,420
32,000 Shell Transport & Trading Co. UK 239,747
------------
1,950,144
------------
FINANCIAL SERVICES 17.6%
37,481 Australia & New Zealand Banking Group Ltd. AU 296,709
31,400 QBE Insurance Group Ltd. AU 140,381
12,000 Westpac Banking Corp. Ltd. AU 91,552
4,100 Westpac Banking Corp. Ltd., ADR AU 156,313
10,000 Uniao de Bancos Brasileiros SA, GDR BR 248,125
15,400 Bank of Nova Scotia CN 365,461
8,700 Newcourt Credit Group, Inc. CN 242,809
4,000 Royal Bank of Canada CN 194,781
3,600 The Toronto-Dominion Bank CN 191,946
600 Banque Nationale de Paris (BNP) FR 49,784
1,500 Compagnie Financiere de Paribas FR 159,599
4,444 Deutsche Bank AG GM 256,866
9,800 Assicurazioni Generali SPA IT 381,949
43,000 Mitsui Marine and Fire Insurance Co. Ltd. JP 238,559
4,000 Nichiei Co. Ltd. (Kyoto) JP 346,952
3,900 Orix Corp. JP 314,092
600 Shohkoh Fund & Co., Ltd JP 351,980
13,000 Sumitomo Bank JP 176,057
1,000 The Nomura Securities Co. Ltd. JP 10,794
5,476 Aegon NV NL 525,596
3,500 ING Groep NV NL 215,813
18,100 Development Bank of Singapore
(Foreign Registered) SG 192,269
17,300 Barclays PLC UK 546,995
7,700 National Westminster Bank PLC UK 185,381
24,500 Royal & Sun Alliance Insurance Group PLC UK 208,634
32,100 Standard Chartered PLC UK 579,231
* 600 Fairfax Financial Holdings Ltd. US 174,646
------------
6,843,274
------------
HEALTH CARE 4.8%
1,900 Synthelabo FR 388,845
4,000 Takeda Chemical Industries JP 173,797
144 Novartis AG (Registered Shares) SZ 210,944
28,317 Zeneca Group PLC UK 1,102,999
------------
1,876,585
------------
MULTI-INDUSTRY 3.2%
8,500 Metallgesellschaft AG GM 163,169
33,000 Hutchison Whampoa Ltd. HK 295,905
4,000 Preussag AG GM 211,318
* 4,000 Preussag AG (Rights) GM 2,919
40,100 TI Group PLC UK 333,740
52,000 Tomkins PLC UK 219,526
------------
1,226,577
------------
RAW MATERIALS 5.4%
13,000 Upm-Kymmene Oyj FI 393,922
1,500 Compagnie de Saint-Gobain FR 257,802
7,000 Pechiney SA FR 296,142
8,500 De Beers Centenary AG, ADR SA 208,250
1,480 Holderbank Financiere Glarus AG SZ 440,791
The accompanying notes are an integral part of these financial statements.
34 FREMONT MUTUAL FUNDS
<PAGE>
FREMONT INTERNATIONAL GROWTH FUND
APRIL 30, 1999 (UNAUDITED)
Country Value
Shares Security Description Code (Note 1)
- --------------------------------------------------------------------------------
RAW MATERIALS (cont.)
16,100 BOC Group PLC UK $ 254,785
22,000 Laporte PLC UK 260,585
------------
2,112,277
------------
RETAIL 3.6%
58,909 Coles Myer Ltd. AU 312,806
* 300 Carrefour SA FR 237,971
10,000 Jusco Co. Ltd. JP 199,455
* 11,000 Cifra SA de CV MX 209,768
5,232 Koninklijke Ahold NV NL 194,507
2,200 Dixons Group PLC UK 47,057
63,900 Tesco PLC UK 189,349
------------
1,390,913
------------
SHELTER 1.1%
14,000 Thyssen Krupp AG GM 291,700
17,000 Cheung Kong (Holdings) Ltd. HK 154,629
------------
446,329
------------
TECHNOLOGY 14.7%
* 4,400 Newbridge Networks Corp. CN 162,729
15,200 Nokia AB, ADR FI 1,127,650
60,000 Johnson Electric Holdings Ltd. HK 179,207
6,210 Advantest Corp. JP 475,150
4,500 Hirose Electronics JP 418,605
2,000 Keyence Corp. JP 300,691
22,000 NEC Corp. JP 262,912
3,000 Rohm Co. Ltd. JP 362,036
13,000 Tokyo Electron Ltd. JP 740,834
11,000 ASM Lithography Holding NV NL 429,000
158,000 Singapore Technologies Engineering Ltd. SG 169,702
* 6,120 Samsung Electronics, GDR SK 271,728
800 Telefonaktiebolaget LM Ericsson (Class B) SW 21,016
* 1,600 Asustek Computer, Inc. TW 21,640
* 16,700 Taiwan Semiconductor
Manufacturing Co. Ltd., ADR TW 400,800
3,400 STMicroelectronics NV (New York Shares) US 346,800
------------
5,690,500
------------
UTILITIES 14.6%
1,100 Lyonnaise Des Eaux-Dumez FR 187,310
13,800 Deutsche Telekom GM 549,523
9,000 Mannesmann AG GM 1,179,386
4,000 Veba AG GM 218,934
* 63,000 Telecom Italia Mobile (TIM) SPA IT 375,804
* 30,000 Telecom Italia Mobile (TIM) SPA
(Savings Shares) IT 100,583
34,334 Telecom Italia SPA IT 365,675
52,500 Telecom Italia SPA (Savings Shares) IT 282,631
40 DDI Corp. JP 198,785
51 Nippon Telegraph & Telephone Corp. JP 185,208
6 NTT Mobile Communication Network, Inc. JP 351,980
5,800 Telefonos de Mexico SA (Class L), ADR MX 439,350
* 9,000 Telefonica SA SP 422,161
* 9,000 Telefonica SA (Rights) SP 8,377
1,030 Swisscom AG SZ 378,391
* 9,800 COLT Telecom Group PLC UK 181,723
* 17,000 Orange PLC UK 230,478
------------
5,656,299
------------
TOTAL STOCKS (Cost $31,702,452) 37,150,561
------------
SHORT-TERM SECURITIES 7.1%
2,757,726 SSgA Prime Money Market Fund US $ 2,757,726
------------
TOTAL SHORT-TERM SECURITIES (Cost $2,757,726) 2,757,726
------------
TOTAL INVESTMENTS (Cost $34,460,178), 102.9% 39,908,287
OTHER ASSETS AND LIABILITIES, NET, (2.9)% (1,129,164)
------------
NET ASSETS, 100.0% 38,779,123
============
The accompanying notes are an integral part of these financial statements.
FREMONT MUTUAL FUNDS 35
<PAGE>
FREMONT INTERNATIONAL SMALL CAP FUND
APRIL 30, 1999 (UNAUDITED)
STATEMENT OF INVESTMENTS IN SECURITIES AND NET ASSETS
Country Value
Shares Security Description Code (Note 1)
- --------------------------------------------------------------------------------
STOCKS 98.5%
BUSINESS EQUIPMENT & SERVICES 4.9%
1,000,000 Hung Hing Printing Group HK $ 419,312
------------
419,312
------------
CAPITAL GOODS 14.5%
* 57,500 Lectra Systemes FR 443,949
55,000 Industria Macchine Automatiche IT 414,176
18,000 Kverneland ASA NO 392,061
------------
1,250,186
------------
CONSUMER DURABLES 2.3%
* 32,500 Shermag, Inc. CN 196,990
------------
196,990
------------
CONSUMER NON-DURABLES 9.2%
6,500 Van Melle NV NL 384,985
250,000 McBride PLC UK 408,093
------------
793,078
------------
CONSUMER SERVICES 29.8%
* 125,000 Norsk Lotteridrift ASA (NLD) NO 448,436
100,000 P4 Radio Hele Norge ASA NO 384,374
10,500 Investec-Consultoria Internacional SA PT 348,596
900 PublicGroupe SA SZ 552,039
1,225 The Selecta Group SZ 405,829
75,000 Dorling Kindersley Holdings PLC UK 428,800
------------
2,568,074
------------
FINANCIAL SERVICES 3.4%
* 95,000 United Panam Financial Corp. US 290,938
------------
290,938
------------
HEALTH CARE 11.1%
27,500 Nobel Biocare SW 435,405
275 Stratec Holding AG SZ 523,174
------------
958,579
------------
RAW MATERIALS 6.2%
12,557 Rinol AG GM 166,675
132,500 Victrex PLC UK 372,913
------------
539,588
------------
SHELTER 0.0%
* 9,275 Century City International Holdings Ltd.
(Warrants) HK $ 12
------------
12
------------
TECHNOLOGY (EQUIPMENT) 11.5%
* 42,400 Saville Systems PLC, ADR IR 511,450
* 10,000 Orbotech Ltd. IS 480,000
------------
991,450
------------
TECHNOLOGY (SOFTWARE) 5.6%
* 32,500 Tecnomatix Technologies Ltd. IS 483,436
* 3,000 Electric Farm ASA NO 2,306
------------
485,742
------------
TOTAL STOCKS (Cost $8,615,442) 8,493,949
------------
SHORT-TERM SECURITIES, 0.9%
81,723 SSgA Prime Money Market Fund US $ 81,723
------------
TOTAL SHORT-TERM SECURITIES (Cost $81,723) 81,723
------------
TOTAL INVESTMENTS (Cost $8,697,165 ), 99.4% 8,575,672
OTHER ASSETS AND LIABILITIES, NET, 0.6% 52,156
------------
NET ASSETS, 100.0% $ 8,627,828
============
The accompanying notes are an integral part of these financial statements.
36 FREMONT MUTUAL FUNDS
<PAGE>
FREMONT EMERGING MARKETS FUND
APRIL 30, 1999 (UNAUDITED)
STATEMENT OF INVESTMENTS IN SECURITIES AND NET ASSETS
Country Value
Shares Security Description Code (Note 1)
- --------------------------------------------------------------------------------
STOCKS 94.7%
CAPITAL GOODS 2.4%
107,000 Cheung Kong Infrastructure Holding Ltd. HK $ 223,641
------------
223,641
------------
CONSUMER NON-DURABLES 5.5%
400,000 PT Daya Guna Samudera ID 242,915
32,000 South Africa Breweries Ltd. SA 264,955
------------
507,870
------------
CONSUMER SERVICES 4.9%
* 129,900 Corporacion Interamericana de
Entretenimiento SA (Series B) MX 448,414
------------
448,414
------------
ENERGY 5.8%
3,400 Lukoil Holding, ADR RU 106,250
60,000 Sasol Ltd. SA 424,691
------------
530,941
------------
FINANCIAL SERVICES 7.7%
100,000 Bank Hapoalim Ltd. IS 238,932
127,100 Bank Leumi Le-Israel IS 217,746
* 251,400 Sanlam Ltd. SA 247,055
------------
703,733
------------
HEALTH CARE 10.9%
12,500 Pliva D.D., GDR CR 198,125
25,400 Ranbaxy Laboratories Ltd., GDR IN 383,540
* 35,050 Dar Al-Dawa Development and Investment JO 276,361
4,000 Gedeon Richter Ltd., GDR US 147,082
------------
1,005,108
------------
MULTI-INDUSTRY 1.1%
* 49,125 Real Africa Holdings Ltd. SA 95,824
------------
95,824
------------
RAW MATERIALS 8.7%
10,000 KGHM Polska Miedz SA, GDR PO 124,498
4,800 Anglo American Corp.
of South Africa Ltd. SA 248,415
* 5,300 Asia Pulp and Paper Co. Ltd. SG 55,650
14,500 Pohang Iron & Steel Co. Ltd. SK 373,375
------------
801,938
------------
RETAIL 0.8%
250,000 Sawang Export Public Co. Ltd. TH 75,809
------------
75,809
------------
TECHNOLOGY 12.9%
5,500 Samsung Electronics Ltd., GDR (1/2 Voting) SK 245,685
* 160,000 Shin Corporations Public Co Ltd.
(Foreign Registered) TH 577,897
* 236,428 United Broadcasting Corp.
(Foreign Registered) TH 148,166
* 51,000 Compal Electronics, Inc. TW 176,239
* 20,000 D-Link Corp. TW 41,284
------------
1,189,271
------------
TRANSPORTATION 3.6%
750,000 Shenzhen Expressway Co. Ltd. CH $ 153,855
1,060,000 Zhejiang Expressway Co. Ltd. CH 176,421
------------
330,276
------------
UTILITIES 30.4%
1,166,454 Telecomunicacoes de Sao Paulo SA (Preferred) BR 144,753
7,500 Telesp Celular Participacoes SA, ADR BR 187,500
1,446,762 Telesp Celular SA (Preferred B) BR 61,880
5,000 Telesp Participacoes SA, ADR BR 125,000
* 8,600 AS Eesti Telekom, GDR ES 181,890
10,000 Hellenic Telecommunication Organization SA GR 232,245
* 130,000 China Telecom (Hong Kong) Ltd. HK 296,873
19,600 Mahanagar Telephone Nigam Ltd., GDR IN 203,840
20,000 Videsh Sanchar Nigam Ltd., GDR IN 239,600
7,300 Telefonos de Mexico SA (Class L), ADR MX 552,975
* 25,000 Telekomunikacja Polska SA, GDR PO 155,000
25,000 Korea Electric Power Corp., ADR SK 412,500
------------
2,794,056
------------
TOTAL STOCKS (Cost $8,721,749) 8,706,881
------------
SHORT-TERM SECURITIES 9.6%
877,849 SSgA Prime Money Market Fund 877,849
------------
TOTAL SHORT-TERM SECURITIES (Cost $877,849) 877,849
------------
TOTAL INVESTMENTS (Cost $9,599,598), 104.3% 9,584,730
------------
OTHER ASSETS AND LIABILITIES, NET, (4.3)% (396,073)
------------
NET ASSETS, 100.0% $ 9,188,657
============
The accompanying notes are an integral part of these financial statements.
FREMONT MUTUAL FUNDS 37
<PAGE>
FREMONT U.S. MICRO-CAP FUND
APRIL 30, 1999 (UNAUDITED)
STATEMENT OF INVESTMENTS IN SECURITIES AND NET ASSETS
Value
Shares Security Description (Note 1)
- --------------------------------------------------------------------------------
STOCKS 83.3%
BUSINESS EQUIPMENT & SERVICES 9.3%
* 156,600 AmeriLink Corp. $ 1,076,625
* 104,500 Arguss Holdings, Inc. 1,711,188
* 169,550 Cameron Ashley Building Products, Inc. 1,865,050
* 84,000 Corporate Executive Board Co. 2,362,500
* 240,500 NewsEdge Corp. 2,044,250
* 304,100 NuCO2, Inc. 2,090,688
* 17,800 Realty Information Group, Inc. 697,538
* 373,900 TeleTech Holdings, Inc. 2,477,088
* 94,300 Zomax Optical Media, Inc. 2,109,963
------------
16,434,890
------------
CAPITAL GOODS 1.4%
* 192,100 IMPCO Technologies, Inc. 1,632,850
* 175,600 Miller Industries, Inc. 888,975
------------
2,521,825
------------
CONSUMER DURABLES 1.5%
208,600 Craftmade International, Inc. 2,737,875
------------
2,737,875
------------
CONSUMER NON-DURABLES 8.8%
* 246,000 Audiovox Corp. (Class A) 1,568,250
* 137,600 Hines Horticulture, Inc. 1,169,600
* 238,300 Image Entertainment, Inc. 2,174,488
* 276,100 NPC International, Inc. 4,969,800
* 137,600 RARE Hospitality International, Inc. 2,476,800
* 154,300 Steven Madden Ltd. 1,388,700
* 347,800 U.S. Home & Garden, Inc. 1,912,900
------------
15,660,538
------------
CONSUMER SERVICES 11.7%
* 177,700 American Classic Voyages Co. 3,176,388
* 115,100 Blue Rhino Corp. 1,654,563
* 115,650 Carmike Cinemas, Inc. (Class A) 2,493,703
233,700 Cash America International, Inc. 2,979,675
* 163,900 Cinar Corp. (Class B) 3,421,413
* 94,400 First Cash, Inc. 1,032,500
* 20,700 SoftNet Systems, Inc. 675,337
* 173,200 Wesley Jessen VisionCare, Inc. 5,304,250
------------
20,737,829
------------
ENERGY 1.8%
* 146,700 Marine Drilling Co., Inc. 2,521,406
* 75,450 Newpark Resources, Inc. 693,197
------------
3,214,603
------------
HEALTH CARE 9.5%
* 142,550 ArthroCare Corp. 2,458,988
* 149,600 Cytyc Corp. 2,926,550
* 133,500 EndoSonics Corp. 675,844
* 78,000 Fusion Medical Technologies, Inc. 550,875
* 348,200 Gene Logic, Inc. 1,479,850
* 813,700 Genelabs Technologies, Inc. 1,373,119
* 230,900 Mediconsult.com, Inc. 2,756,369
* 73,900 NeoPharm, Inc. 1,265,538
* 59,200 Novoste Corp. 1,317,200
* 29,700 Perclose, Inc. 1,128,600
* 66,700 SangStat Medical Corp. 967,150
------------
16,900,083
------------
RAW MATERIALS 0.7%
197,400 Northern Technologies International Corp.(b) $ 1,184,400
------------
1,184,400
------------
RETAIL 10.7%
* 85,550 Gadzooks, Inc. 812,725
* 294,000 Genesco, Inc. 3,197,250
* 141,600 Movie Gallery, Inc. 831,900
* 82,100 Pacific Sunwear of California, Inc. 3,045,397
* 218,400 Rent-Way, Inc. 5,951,400
* 182,700 United Retail Group, Inc. 1,975,444
* 159,100 Urban Outfitters, Inc. 3,082,563
------------
18,896,679
------------
TECHNOLOGY (COMPONENTS) 15.9%
* 239,200 Anaren Microwave, Inc. 4,873,700
* 170,000 Ault, Inc. 1,848,750
* 330,000 Elantec Semiconductor, Inc. 2,598,750
* 137,700 Emulex Corp. 6,076,013
* 42,445 Hi/fn, Inc. 2,292,030
* 139,800 Kopin Corp. 2,638,725
* 328,300 Orckit Communications Ltd. 7,879,200
------------
28,207,168
------------
TECHNOLOGY (EQUIPMENT) 6.0%
* 214,250 Information Resources, Inc. 4,285,000
* 21,900 Intergral Systems, Inc. 492,750
* 50,650 Netopia, Inc. 1,136,458
374,200 Photon Dynamics, Inc. 3,742,000
* 23,200 Proxim, Inc. 893,200
------------
10,549,408
------------
TECHNOLOGY (SOFTWARE) 6.0%
* 100,000 Brooktrout Technology, Inc. 1,493,749
* 82,000 Digital Lava, Inc. 789,249
* 7,000 Exigent International, Inc. 36,312
* 272,800 MDSI Mobile Data Solutions, Inc. 4,774,000
* 33,100 New Era of Networks, Inc. 1,243,318
* 293,300 OrCAD, Inc. 2,273,074
* 16,250 Puma Technology, Inc. 87,343
------------
10,697,045
------------
TOTAL STOCKS (Cost $132,600,631) 147,742,343
------------
SHORT-TERM SECURITIES 18.5%
396,254 SSgA Prime Money Market Fund 396,254
$ 5,000,000 American Express Credit Corp.,CP,
4.810%(a), 05/05/99 4,997,328
5,000,000 Cargill, Inc., CP, 4.850%(a), 05/07/99 4,995,958
5,000,000 General Electric Capital Corp., CP,
4.830%(a), 05/06/99 4,996,646
** 5,000,000 Lincoln National Corp., CP,
4.730%(a), 05/03/99 4,998,686
8,000,000 Merrill Lynch & Co., Inc., CP,
4.770%(a), 05/04/99 7,996,820
4,500,000 Smithkline Beecham Corp., CP,
4.920%(a), 05/03/99 4,498,770
------------
TOTAL SHORT-TERM SECURITIES (Cost $32,880,462) 32,880,462
------------
TOTAL INVESTMENTS (Cost $165,481,093) 101.8% 180,622,805
OTHER ASSETS AND LIABILITIES, NET, (1.8)% (3,132,103)
------------
NET ASSETS, 100.0% $177,490,702
============
The accompanying notes are an integral part of these financial statements.
38 FREMONT MUTUAL FUNDS
<PAGE>
FREMONT U.S. SMALL CAP FUND
APRIL 30, 1999 (UNAUDITED)
STATEMENT OF INVESTMENTS IN SECURITIES AND NET ASSETS
Value
Shares Security Description (Note 1)
- --------------------------------------------------------------------------------
STOCKS 94.1%
BUSINESS EQUIPMENT & SERVICES 15.4%
600 Air Express International Corp. $ 13,125
* 6,900 Getty Images, Inc. 179,400
* 3,100 Metzler Group, Inc. 86,413
8,600 National Data Corp. 396,675
6,350 Nielsen Media Research, Inc. 173,831
* 10,492 Nova Corp. 272,792
* 15,500 NuCO2, Inc. 106,563
* 6,500 Pixar, Inc. 269,750
* 65,800 TeleTech Holdings, Inc. 435,925
------------
1,934,474
------------
CONSUMER NON-DURABLES 11.2%
* 2,700 Action Performance Companies, Inc. 91,463
* 20,200 e4L, Inc. 150,238
* 90,000 Hanover Direct, Inc. 253,125
* 24,700 NPC International, Inc. 444,600
* 4,400 The Scotts Co. (Class A) 180,950
* 10,000 Select Comfort Corp. 161,875
* 3,400 Suiza Foods Corp. 127,713
------------
1,409,964
------------
CONSUMER SERVICES 8.6%
* 12,550 American Classic Voyages Co. 224,331
* 3,100 Autoweb.com, Inc. 80,988
* 17,700 Cinar Corp. (Class B) 369,488
* 11,000 Fairfield Communities, Inc. 141,625
* 400 Go2net, Inc. 61,400
* 12,000 Loews Cineplex Entertainment Corp. 151,500
* 1,500 SoftNet Systems, Inc. 48,937
------------
1,078,269
------------
ENERGY 2.1%
* 21,800 Global Industries Ltd. 268,413
------------
268,413
------------
HEALTH CARE 12.5%
* 11,000 Cytyc Corp. 215,188
* 5,700 Gilead Sciences, Inc. 262,556
* 17,700 Mediconsult.com, Inc. 211,294
17,000 NeoPharm, Inc. 291,125
* 19,900 Orthodontic Centers of America, Inc. 246,263
* 2,700 Oxford Health Plans, Inc. 53,831
* 8,300 PAREXEL International Corp. 199,719
* 900 Perclose, Inc. 34,200
* 3,800 SangStat Medical Corp. 55,100
------------
1,569,276
------------
REIT 1.1%
8,300 IndyMac Mortgage Holdings, Inc. 136,950
------------
136,950
------------
RETAIL 10.6%
* 7,500 Consolidated Stores Corp. 257,813
* 11,700 General Nutrition Companies, Inc. 193,781
* 8,400 Just For Feet, Inc. 106,050
* 16,000 Rent-Way, Inc. 436,000
* 9,300 Tuesday Morning Corp. 181,350
* 4,300 Zales Corp. 162,594
------------
1,337,588
------------
TECHNOLOGY (COMPONENTS) 12.2%
* 14,200 Anaren Microwave, Inc. $ 289,325
* 5,300 Emulex Corp. 233,863
* 3,700 Micrel, Inc. 217,838
* 3,000 Oak Industries, Inc. 125,250
* 21,000 Orckit Communications Ltd. 504,000
* 4,800 Sawtek, Inc. 169,199
------------
1,539,475
------------
TECHNOLOGY (EQUIPMENT) 6.8%
* 9,200 ANTEC Corp. 249,550
* 14,600 Pinnacle Holding, Inc. 299,300
* 6,200 Powerwave Technologies, Inc. 188,324
* 3,800 Westower Corp. 121,600
------------
858,774
------------
TECHNOLOGY (SOFTWARE) 9.7%
* 11,700 CBT Group PLC, ADR 181,349
* 1,650 Critical Path, Inc. 164,175
* 12,600 FORE Systems, Inc. 425,249
* 2,700 New Era of Networks, Inc. 101,418
* 3,100 VeriSign, Inc. 356,499
------------
1,228,690
------------
UTILITIES 3.9%
* 11,600 Calpine Corp. 494,450
------------
494,450
------------
TOTAL STOCKS (Cost $10,337,770) 11,856,323
------------
SHORT-TERM SECURITIES 8.4%
1,055,802 SSgA Prime Money Market Fund 1,055,802
------------
TOTAL SHORT-TERM SECURITIES (Cost $1,055,802) 1,055,802
------------
TOTAL INVESTMENTS (Cost $11,393,572), 102.5% 12,912,125
OTHER ASSETS AND LIABILITIES, NET, (2.5)% (308,821)
------------
NET ASSETS, 100.0% $ 12,603,304
============
The accompanying notes are an integral part of these financial statements.
FREMONT MUTUAL FUNDS 39
<PAGE>
FREMONT GROWTH FUND
APRIL 30, 1999 (UNAUDITED)
STATEMENT OF INVESTMENTS IN SECURITIES AND NET ASSETS
Value
Shares Security Description (Note 1)
- --------------------------------------------------------------------------------
STOCKS 82.8%
BUSINESS EQUIPMENT & SERVICES 3.0%
* 102,900 EarthShell Corp. $ 1,003,275
34,000 GATX Corp. 1,168,750
* 100,900 Republic Services, Inc. 2,074,756
------------
4,246,781
------------
CAPITAL GOODS 2.8%
7,200 Caterpillar, Inc. 463,500
32,800 General Electric Co. 3,460,400
------------
3,923,900
------------
CONSUMER DURABLES 3.4%
74,300 Ford Motor Co. 4,750,556
------------
4,750,556
------------
CONSUMER NON-DURABLES 4.7%
22,900 Anheuser Busch Cos., Inc. 1,674,563
* 2,800 Canandaigua Brands, Inc. (Class A) 144,200
15,300 Coca-Cola Co. 1,040,400
6,000 Eastman Kodak Co. 447,750
10,600 Pepsico, Inc. 391,538
37,800 Philip Morris Cos., Inc. 1,325,363
5,400 Procter & Gamble Co. 506,588
* 21,000 Smithfield Foods, Inc. 496,125
* 15,000 Suiza Foods Corp. 563,435
------------
6,589,962
------------
CONSUMER SERVICES 3.1%
* 5,000 Broadcast.com, Inc. 641,250
23,800 Carnival Corp. 981,750
16,000 International Game Technology 284,000
25,200 John Wiley & Sons, Inc. (Class A) 1,019,025
15,000 Royal Caribbean Cruises Ltd. 554,062
* 21,600 Viacom, Inc. (Class B) 882,900
------------
4,362,987
------------
ENERGY 2.6%
16,000 Diamond Offshore Drilling, Inc. 529,000
26,100 Exxon Corp. 2,167,931
8,500 Schlumberger Ltd. 542,938
13,000 Sonat, Inc. 464,750
------------
3,704,619
------------
FINANCIAL SERVICES 14.0%
2,800 Aetna, Inc. 245,525
6,100 Allstate Corp. 221,888
13,600 American International Group, Inc. 1,597,150
8,600 Associates First Capital Corp. 381,087
2,200 Bank of New York Co., Inc. 88,000
32,000 Bank One Corp. 1,888,000
23,729 BankAmerica Corp. 1,708,488
29,000 Chase Manhattan Corp. 2,399,750
FINANCIAL SERVICES (cont.)
36,800 Citigroup, Inc. $ 2,769,200
13,900 Countrywide Credit Industries, Inc. 629,844
15,200 Federal Home Loan Mortgage Corp. 953,800
38,300 Federal National Mortgage Association 2,716,906
1,300 First Union Corp. 71,987
17,600 Fleet Financial Group, Inc. 757,900
27,850 MBNA Corp. 785,022
2,500 Mellon Bank Corp. 185,781
8,700 Morgan Stanley, Dean Witter and Co. 862,931
15,000 PNC Bank Corp. 868,125
14,600 Wells Fargo Co. 630,538
------------
19,761,922
------------
HEALTH CARE 9.3%
8,800 Abbott Laboratories 426,250
2,600 American Home Products Corp. 158,600
31,200 Bristol-Myers Squibb Co. 1,983,150
20,000 Conseco, Inc. 631,250
* 13,000 Genentech, Inc. 1,100,125
* 44,200 Healthsouth Rehabilitation Corp. 593,938
18,600 Johnson & Johnson 1,813,500
7,200 Lilly (Eli) & Co. 530,100
13,247 McKesson HBOC, Inc. 463,645
26,000 Merck & Co. 1,826,500
15,200 Pfizer, Inc. 1,748,950
17,000 Schering Plough Corp. 821,313
15,400 Warner-Lambert Co. 1,046,238
------------
13,143,559
------------
MULTI-INDUSTRY 1.4%
25,500 Allied-Signal, Inc. 1,498,125
9,000 Corning, Inc. 515,250
------------
2,013,375
------------
RAW MATERIALS 2.7%
15,300 Dow Chemical Co. 2,007,169
4,100 Du Pont (E.I.) de Nemours & Co. 289,563
22,200 Reliance Steel & Aluminum Co. 808,912
* 41,400 W.R. Grace & Co. 659,812
------------
3,765,456
------------
RETAIL 6.8%
* 12,500 Abercrombie & Fitch Co. (Class A) 1,189,063
7,000 Best Buy Co., Inc. 334,250
12,200 Dayton-Hudson Corp. 821,213
36,500 Home Depot, Inc. 2,187,719
15,600 Lowe's Cos., Inc. 822,900
* 14,600 Papa John's International, Inc. 586,737
12,400 Sears, Roebuck and Co. 570,400
66,200 Wal Mart Stores, Inc. 3,045,200
------------
9,557,482
------------
The accompanying notes are an integral part of these financial statements.
40 FREMONT MUTUAL FUNDS
<PAGE>
FREMONT GROWTH FUND
APRIL 30, 1999 (UNAUDITED)
Value
Shares Security Description (Note 1)
- --------------------------------------------------------------------------------
TECHNOLOGY 16.3%
35,000 Boeing Co. $ 1,421,875
* 23,250 Cisco Systems, Inc. 2,651,953
24,500 Compaq Computer Corp. 546,656
17,600 Computer Associates International, Inc. 751,300
* 20,800 Compuware Corp. 507,000
* 36,800 Dell Computer Corp. 1,515,700
* 12,000 Electronic Arts, Inc. 609,750
* 9,900 EMC Corp. 1,078,481
* 13,000 Gulfstream Aerospace Corp. 633,750
17,400 Hewlett-Packard Co. 1,372,425
43,000 Intel Corp. 2,631,062
9,100 International Business Machines Corp. 1,903,606
* 59,200 Microsoft Corp. 4,813,700
* 31,150 Oracle Systems Corp. 842,997
* 10,400 Sun Microsystems, Inc. 622,050
7,400 United Technologies Corp. 1,072,075
------------
22,974,380
------------
TRANSPORTATION 1.2%
45,800 Burlington Northern Sante Fe Corp. 1,677,425
------------
1,677,425
------------
UTILITIES 11.5%
* 16,400 AES Corp. 820,000
* 20,100 AirTouch Communications, Inc. 1,876,838
21,300 AT&T Corp. 1,075,650
23,200 Bell Atlantic Corp. 1,336,900
32,600 BellSouth Corp. 1,458,850
41,500 Coastal Corp. 1,587,375
6,900 GTE Corp. 461,869
33,600 Lucent Technologies, Inc. 2,020,200
* 30,900 MCI WorldCom, Inc. 2,539,594
35,000 Otter Tail Power Co. 1,338,750
30,500 SBC Communications, Inc. 1,708,000
------------
16,224,026
------------
TOTAL STOCKS (Cost $90,315,654) 116,696,430
------------
SHORT-TERM SECURITIES 17.3%
2,133,031 SSgA Prime Money Market Fund $ 2,133,031
$ 6,800,000 International Business Machines Credit Corp.,
CP, 4.920%(a), 05/03/99 6,798,141
7,000,000 Merrill Lynch & Co., Inc., CP,
4.770%(a), 05/03/99 6,998,145
7,000,000 Smithkline Beecham Corp., CP,
4.920%(a), 05/03/99 6,998,087
+ 1,540,000 U.S. Treasury Bill, 4.370%(a), 06/17/99 1,531,213
------------
TOTAL SHORT-TERM SECURITIES (Cost $24,458,617) 24,458,617
------------
TOTAL INVESTMENTS (Cost $114,774,271), 100.1% 141,155,047
OTHER ASSETS AND LIABILITIES, NET, (0.1)% (99,475)
------------
NET ASSETS, 100.0% $141,055,572
============
The accompanying notes are an integral part of these financial statements.
FREMONT MUTUAL FUNDS 41
<PAGE>
FREMONT REAL ESTATE SECURITIES FUND
APRIL 30, 1999 (UNAUDITED)
STATEMENT OF INVESTMENTS IN SECURITIES AND NET ASSETS
Value
Shares Security Description (Note 1)
- --------------------------------------------------------------------------------
STOCKS 86.6%
REITs (APARTMENTS) 13.9%
13,600 Apartment Investment & Management Co. $ 544,850
15,800 Archstone Communities Trust 358,463
35,200 Associated Estates Realty Corp. 407,000
55,300 Berkshire Realty Company, Inc. 635,950
10,000 Cornerstone Realty Income Trust, Inc. 99,375
24,390 Equity Residential Properties Trust 1,128,038
66,400 Lexford Residential Trust 1,157,850
9,600 Walden Residential Properties, Inc. 183,600
------------
4,515,126
------------
REITs (COMMUNITY CENTERS) 11.5%
20,100 Agree Realty Corp. 340,444
31,800 Developers Diversified Realty Corp. 502,838
23,000 IRT Property Co. 217,063
43,800 Kranzco Realty Trust 613,200
87,300 Malan Realty Investors, Inc. 1,358,606
44,400 Ramco-Gershenson Properties Trust 699,300
------------
3,731,451
------------
REITs (DIVERSIFIED) 6.9%
53,400 Aegis Realty, Inc. 534,000
* 45,900 First Union Real Estate Investments 189,338
10,000 Glenborough Realty Trust, Inc. 171,875
63,900 Pacific Gulf Properties, Inc. 1,329,919
------------
2,225,132
------------
REITs (HOTELS) 4.4%
20,000 Host Marriot Corp. 266,250
64,600 Patriot American Hospitality, Inc. 327,038
49,300 Sunstone Hotel Investors, Inc. 452,944
40,000 Winston Hotels, Inc. 390,000
------------
1,436,232
------------
REITs (INDUSTRIAL) 6.3%
144,900 American Industrial Properties REIT 1,630,125
15,000 First Industrial Realty Trust, Inc. 403,125
------------
2,033,250
------------
REITs (MORTGAGE BACKED) 0.5%
30,000 Chastain Capital Corp. 165,939
------------
165,939
------------
REITs (OFFICE) 32.6%
1,900 Arden Realty, Inc. 47,500
234,400 Banyan Strategic Realty Trust 1,113,400
58,000 Brandywine Realty Trust 1,094,750
139,900 Corporate Office Properties Trust, Inc. 1,023,019
15,000 Crescent Real Estate Equities Co. 335,625
30,100 Equity Office Properties Trust 829,631
41,000 Highwoods Properties, Inc. 1,055,750
99,700 Koger Equity, Inc. 1,464,344
9,400 Mack-Cali Realty Corp. 290,813
79,100 Prentiss Properties Trust 1,710,538
41,000 Prime Group Realty Trust 599,625
16,900 PS Business Parks, Inc. 395,038
22,800 TriNet Corporate Realty Trust, Inc. 625,575
------------
10,585,608
------------
REITs (REGIONAL MALLS) 2.1%
39,400 Glimcher Realty Trust $ 667,338
------------
667,338
------------
NON-REITs (DIVERSIFIED) 4.0%
* 129,600 Wellsford Real Properties, Inc. 1,296,000
------------
1,296,000
------------
NON-REITs (HEALTH CARE) 2.8%
* 40,000 Brookdale Living Communities, Inc. 605,000
* 32,100 Capital Senior Living Corp. 316,981
------------
921,981
------------
NON-REITs (hotels) 1.6%
14,600 Starwood Hotels & Resorts Worldwide, Inc. 535,638
------------
535,638
------------
TOTAL STOCKS (Cost $28,514,137) 28,113,695
------------
SHORT-TERM SECURITIES 16.6%
5,399,048 SSgA Prime Money Market Fund 5,399,048
------------
TOTAL SHORT-TERM SECURITIES (Cost $5,399,048) 5,399,048
------------
TOTAL INVESTMENTS (Cost $33,913,185), 103.2% 33,512,743
OTHER ASSETS AND LIABILITIES, NET, (3.2)% (1,030,380)
------------
NET ASSETS, 100.0% $ 32,482,363
============
The accompanying notes are an integral part of these financial statements.
42 FREMONT MUTUAL FUNDS
<PAGE>
FREMONT BOND FUND
APRIL 30, 1999 (UNAUDITED)
STATEMENT OF INVESTMENTS IN SECURITIES AND NET ASSETS
<TABLE>
<CAPTION>
Coupon Maturity Value
Face Amount Issuer Rate Date (Note 1)
- ------------------------------------------------------------------------------------------------------------------------------
BONDS 128.6%
FIXED RATE AND ADJUSTABLE RATE MORTGAGE SECURITIES 34.5%
<S> <C> <C> <C>
$ 415,295 FHLMC ......................................................... 6.500% 01/01/26 $ 413,219
145,390 FHLMC ......................................................... 6.500% 03/01/26 144,663
232,273 FHLMC ......................................................... 6.500% 04/01/26 231,112
167,327 FHLMC ......................................................... 6.500% 05/01/26 166,490
325,545 FHLMC ......................................................... 8.250% 08/01/17 342,210
469,085 FHLMC GOLD .................................................... 6.500% 04/01/26 466,739
161,809 FHLMC GOLD .................................................... 6.500% 04/01/26 161,000
44,280,000 FHLMC GOLD TBA ................................................ 6.000% 05/17/29 42,993,113
3,200,000 FHLMC GOLD TBA ................................................ 6.500% 05/17/29 3,185,000
5,786,025 FNMA .......................................................... 6.500% 05/18/23 5,816,865
362,502 FNMA .......................................................... 8.500% 05/01/25 380,852
334,805 FNMA ARM ...................................................... 7.424% 11/01/23 340,246
3,753,384 GNMA .......................................................... 6.000% 01/15/24 3,637,340
1,664,327 GNMA .......................................................... 6.000% 01/15/24 1,612,871
37,962 GNMA .......................................................... 6.500% 02/15/24 37,746
714,641 GNMA .......................................................... 6.500% 03/15/24 710,571
31,832 GNMA .......................................................... 6.500% 06/15/24 31,650
131,394 GNMA .......................................................... 8.000% 06/15/25 136,996
897,663 GNMA ARM ...................................................... 6.125% 10/20/25 910,727
8,445,821 GNMA II ARM ................................................... 6.125% 10/20/27 8,557,779
293,178 GNMA II ARM ................................................... 6.125% 11/20/24 297,699
1,370,986 GNMA II ARM ................................................... 6.125% 11/20/26 1,392,075
859,887 GNMA II ARM ................................................... 6.375% 03/20/24 875,600
1,409,802 GNMA II ARM ................................................... 6.625% 08/20/25 1,436,028
159,108 GNMA II ARM ................................................... 6.875% 04/20/21 161,247
3,500,000 GNMA TBA ...................................................... 6.500% 05/24/29 3,479,766
-------------
77,919,604
-------------
COLLATERALIZED MORTGAGE OBLIGATIONS 35.2%
5,000,000 BA Mortgage Securities, Inc. CMO, 1998-4, PAC-1, REMIC ........ 6.600% 08/25/28 5,017,700
2,123,981 Chase Mortgage Finance Corp. CMO, 1993-H2-A4, REMIC ........... 7.000% 07/25/24 2,133,836
2,515,262 Chase Mortgage Finance Corp. CMO, 1995-A, Class A, REMIC ...... 6.204% 04/25/25 2,383,500
500,000 Chase Mortgage Finance Corp. CMO, 1998-S6-A17, REMIC .......... 6.750% 10/25/28 492,215
5,000,000 Countrywide Home Loans CMO, 1999-7-A3 ......................... 6.250% 06/25/14 4,933,594
1,056,715 FHLMC CMO, 1018 0Z, PAC-1 (11), REMIC ......................... 7.000% 11/15/20 1,070,722
5,301,000 FHLMC CMO, 1998-T11-A5, REMIC ................................. 6.500% 01/25/15 5,294,586
8,000,000 FHLMC CMO, 1998-T11-A6, REMIC ................................. 6.500% 09/25/18 8,049,600
15,000,000 FNMA CMO, 1992-131KA, PAC(11), REMIC .......................... 8.000% 01/25/22 15,336,840
200,000 FNMA CMO, 1993-11J, PAC, REMIC ................................ 7.500% 02/25/08 208,934
8,344,697 FNMA CMO,1993-21-Z, REMIC ..................................... 7.200% 05/25/23 8,305,296
8,000,000 GNMA CMO, 1998-15-C, REMIC .................................... 6.500% 06/20/28 7,713,112
983,079 Morgan Stanley Mortgage Trust CMO, 40-8, PAC (11), REMIC ...... 7.000% 07/20/21 988,866
4,900,000 PNC Mortgage Securities Corp. CMO, 1999-4-1A8, PAC(11) ........ 6.200% 06/25/29 4,857,891
10,000,000 Residential Funding Mortgage Securities I, Inc. ...............
CMO, 1997-S17-A5, REMIC ..................................... 7.000% 11/25/27 10,009,900
2,584,858 Securitized Asset Sales, lnc. CMO, 1993-2A9, PAC (11), REMIC .. 6.200% 07/25/08 2,577,569
-------------
79,374,161
-------------
</TABLE>
The accompanying notes are an integral part of these financial statements.
FREMONT MUTUAL FUNDS 43
<PAGE>
FREMONT BOND FUND
APRIL 30, 1999 (UNAUDITED)
<TABLE>
<CAPTION>
Coupon Maturity Value
Face Amount Issuer Rate Date (Note 1)
- ------------------------------------------------------------------------------------------------------------------------------
CORPORATE BONDS 40.8%
<S> <C> <C> <C> <C>
$ 1,000,000 AES Corp. ..................................................... 10.250% 07/15/06 $ 1,060,000
5,000,000 Associates Corp. .............................................. 5.750% 11/01/03 4,956,350
4,000,000 BankAmerica Corp., FRN, MTN ................................... 5.020% 03/05/01 4,001,664
500,000 Bear Stearns Co., Inc., FRN, MTN .............................. 5.821% 02/06/01 502,427
1,100,000 Beckman Instruments, Inc. ..................................... 7.100% 03/04/03 1,089,990
1,000,000 Buckeye Technologies, Inc. .................................... 8.000% 10/15/10 1,002,500
700,000 Building Materials Corp. ...................................... 7.750% 07/15/05 686,000
700,000 Building Materials Corp. ...................................... 8.000% 10/15/07 689,500
5,000,000 Chrysler Financial Corp., FRN, MTN ............................ 4.958% 06/11/01 4,995,455
1,000,000 Citicorp, FRN, MTN ............................................ 5.090% 08/13/02 995,760
2,000,000 Citicorp, FRN, MTN ............................................ 5.100% 11/12/02 1,990,280
785,000 Delta Air Lines, Inc. (Sinking Fund Bond) ..................... 9.450% 02/14/06 871,821
1,577,000 Delta Air Lines, Inc. (Sinking Fund Bond) ..................... 9.450% 02/26/06 1,752,599
2,000,000 Ford Motor Credit, FRN ........................................ 5.125% 02/13/03 1,990,550
5,000,000 Ford Motor Credit, FRN ........................................ 5.184% 04/28/05 4,961,325
3,000,000 Ford Motor Credit, FRN, MTN ................................... 5.166% 09/03/01 2,998,707
3,000,000 Ford Motor Credit, FRN, MTN ................................... 5.250% 03/05/01 3,004,821
2,600,000 General Motors Acceptance Corp. ............................... 5.121% 04/29/02 2,604,649
2,500,000 General Motors Acceptance Corp. ............................... 5.100% 08/18/03 2,485,095
10,000,000 General Motors Acceptance Corp. ............................... 5.750% 11/10/03 9,879,000
2,000,000 Goldman Sachs Group, FRN ...................................... 5.210% 11/24/00 1,995,820
3,000,000 Goldman Sachs Group, FRN ...................................... 5.230% 02/22/02 3,006,186
5,000,000 Goldman Sachs Group, FRN ...................................... 5.330% 01/16/03 4,984,700
5,000,000 Household Finance Corp. ....................................... 5.300% 06/17/05 4,974,895
800,000 Lehman Brothers Holdings, Inc., MTN ........................... 8.150% 05/15/00 819,104
7,980,000 MCI Worldcom, Inc. ............................................ 6.125% 08/15/01 8,030,035
1,865,000 Nabisco, Inc. ................................................. 6.000% 02/15/11 1,854,668
5,000,000 Noram Energy Corp. ............................................ 6.375% 11/01/03 5,009,400
3,000,000 Popular, Inc. ................................................. 6.200% 04/30/01 3,012,600
1,000,000 Residential Reinsurance ....................................... 9.180% 06/01/99 1,011,875
2,400,000 Texas Utilities ............................................... 5.940% 10/15/01 2,401,298
225,000 Time Warner, Inc. ............................................. 7.975% 08/15/04 243,173
450,000 Time Warner, Inc. ............................................. 8.110% 08/15/06 494,051
450,000 Time Warner, Inc. ............................................. 8.180% 08/15/07 499,154
1,000,000 United Airlines ............................................... 10.670% 05/01/04 1,151,716
-------------
92,007,168
-------------
FOREIGN GOVERNMENT BONDS 6.3%
NZ $ 800,000 Interamerican Development Bank................................. 5.750% 04/15/04 441,837
US $3,000,000 Nacional Financiera SNC, FRN................................... 8.649% 12/01/00 3,060,000
5,000,000 Republic of Argentina, FRN .................................... 11.447% 04/10/05 4,750,000
1,460,100 Republic of Argentina, FRN
(Callable Semiannually in March or September @ 100) ......... 5.938% 03/31/05 1,306,789
2,000,000 Republic of Korea ............................................. 8.281% 04/08/00 2,008,000
3,000,000 Republic of Philippines ....................................... 6.500% 12/01/17 2,658,900
-------------
14,225,526
-------------
U.S. GOVERNMENT & AGENCY BONDS 11.8%
10,000,000 FNMA MTN ...................................................... 6.200% 08/12/08 9,892,200
5,400,000 U.S. Treasury Bond ............................................ 8.875% 08/15/17 7,165,962
1,700,000 U.S. Treasury Bond ............................................ 9.125% 05/15/18 2,319,174
600,000 U.S. Treasury Note ............................................ 6.375% 08/15/02 620,904
400,000 U.S. Treasury Note ............................................ 7.250% 05/15/16 457,624
3,090,300 U.S. Treasury Inflation Protection Note ....................... 3.625% 07/15/02 3,076,768
1,121,538 U.S. Treasury Inflation Protection Note ....................... 3.625% 01/15/08 1,098,727
1,904,700 U.S. Treasury Inflation Protection Note ....................... 3.875% 01/15/09 1,907,105
-------------
26,538,464
-------------
TOTAL BONDS (Cost $289,311,413) 290,064,923
-------------
</TABLE>
The accompanying notes are an integral part of these financial statements.
44 FREMONT MUTUAL FUNDS
<PAGE>
FREMONT BOND FUND
APRIL 30, 1999 (UNAUDITED)
<TABLE>
<CAPTION>
Shares/ Discount Maturity Value
Face Amount Issuer Rate Date (Note 1)
- ------------------------------------------------------------------------------------------------------------------------------
OTHER SECURITIES 0.1%
<S> <C> <C>
* 9,000 Call Option on U.S. Treasury Note, 5.500%, Strike @ 95.625, Exp. 05/17/99 ................. $ 47,205
* 6,000 Call Option on U.S. Treasury Note, 5.750%, Strike @ 96.156, Exp. 05/17/99 ................. 33,204
* 26,000 Call Option on U.S. Treasury Note, 5.875%, Strike @ 96.594, Exp. 05/24/99 ................. 140,608
* 110,000 Call Option on U.S. Treasury Note, 4.750%, Strike @ 98.609, Exp. 08/20/99 ................. 73,260
-------------
294,277
-------------
TOTAL OTHER SECURITIES (Cost $354,914) 294,277
-------------
SHORT-TERM SECURITIES 1.6%
2,735,905 SSgA Prime Money Market Fund ............................................................... 2,735,905
+ $ 540,000 U.S. Treasury Bill ............................................. 4.300% 05/13/99 539,226
+ 20,000 U.S. Treasury Bill ............................................. 4.470% 06/24/99 19,866
+ 30,000 U.S. Treasury Bill ............................................. 4.490% 06/24/99 29,798
+ 300,000 U.S. Treasury Bill ............................................. 4.490% 06/24/99 297,979
+ 30,000 U.S. Treasury Bill ............................................. 4.520% 06/24/99 29,797
-------------
TOTAL SHORT-TERM SECURITIES (Cost $3,652,571) 3,652,571
-------------
TOTAL INVESTMENTS (Cost $293,318,898), 130.3% 294,011,771
OTHER ASSETS AND LIABILITIES, NET, (30.3)% (68,318,493)
-------------
NET ASSETS, 100% $ 225,693,278
=============
</TABLE>
The accompanying notes are an integral part of these financial statements.
FREMONT MUTUAL FUNDS 45
<PAGE>
FREMONT MONEY MARKET FUND
APRIL 30, 1999 (UNAUDITED)
STATEMENT OF INVESTMENTS IN SECURITIES AND NET ASSETS
<TABLE>
<CAPTION>
Discount Maturity Value
Face Amount Issuer Rate Date (Note 1)
- ------------------------------------------------------------------------------------------------------------------------------
COMMERCIAL PAPER 88.5%
BANKS 16.3%
<S> <C> <C> <C> <C>
$ 10,000,000 Abbey National North America Corp. ............................ 4.740% 08/02/99 $ 9,877,550
10,000,000 Abbey National North America Corp. ............................ 4.830% 09/07/99 9,826,925
10,000,000 B.B.V. Finance (Delaware), Inc. ............................... 4.800% 05/25/99 9,967,733
10,000,000 Banque ET Caisse D'Epargne De L'Etat .......................... 4.820% 05/11/99 9,986,611
10,000,000 Banque ET Caisse D'Epargne De L'Etat .......................... 4.770% 08/03/99 9,875,450
5,000,000 Banque ET Caisse D'Epargne De L'Etat .......................... 4.840% 09/03/99 4,915,972
10,000,000 Commonwealth Bank of Australia ................................ 4.720% 07/27/99 9,885,933
10,000,000 Deutsche Bank Financial, Inc. ................................. 4.820% 05/10/99 9,987,950
10,000,000 Halifax PLC ................................................... 4.780% 08/09/99 9,867,222
10,000,000 Halifax PLC ................................................... 4.800% 12/21/99 9,688,000
15,000,000 HVB Finance (Delaware), Inc. .................................. 4.800% 07/14/99 14,852,000
10,000,000 UBS Finance(Delaware), Inc. ................................... 4.888% 05/18/99 9,976,918
-------------
118,708,264
-------------
BUSINESS EQUIPMENT & SERVICES 7.5%
** 10,000,000 BTR Dunlop Finance, Inc. ...................................... 4.840% 05/10/99 9,987,900
** 5,000,000 BTR Dunlop Finance, Inc. ...................................... 4.790% 06/29/99 4,960,749
10,000,000 Clorox Co. .................................................... 4.830% 05/07/99 9,991,950
10,000,000 General Electric Capital Corp. ................................ 4.800% 07/30/99 9,880,000
10,000,000 General Electric Capital Corp. ................................ 4.830% 09/15/99 9,816,192
** 10,000,000 Panasonic Finance Corp. ....................................... 4.830% 06/30/99 9,919,500
-------------
54,556,291
-------------
CONSUMER DURABLES 4.1%
10,000,000 Ford Motor Credit Corp. ...................................... 4.830% 06/07/99 9,950,358
10,000,000 General Motors Acceptance Corp. .............................. 4.820% 05/19/99 9,975,900
10,000,000 General Motors Acceptance Corp. .............................. 4.810% 07/28/99 9,882,422
-------------
29,808,680
-------------
CONSUMER NON-DURABLES 6.6%
5,000,000 Archer Daniels Midland Co. .................................... 4.780% 06/08/99 4,974,772
10,000,000 Eastman Kodak Co. ............................................. 4.790% 07/26/99 9,885,572
9,000,000 Golden Peanut Co. ............................................. 4.840% 07/01/99 8,926,190
10,000,000 Sharp Electronics Corp. ....................................... 4.870% 06/11/99 9,944,536
10,000,000 Sharp Electronics Corp. ....................................... 4.850% 07/07/99 9,909,736
5,000,000 Sharp Electronics Corp. ....................................... 4.850% 07/16/99 4,948,806
-------------
48,589,612
-------------
CONSUMER SERVICES 3.0%
14,900,000 Stanford, Leland Junior University ............................ 4.780% 07/16/99 14,749,642
7,000,000 Stanford, Leland Junior University ............................ 4.770% 08/06/99 6,910,033
-------------
21,659,675
-------------
ENERGY 4.1%
10,000,000 Chevron UK Investment PLC ..................................... 4.820% 08/18/99 9,854,061
10,000,000 Petrofina (Delaware), Inc. .................................... 4.770% 05/28/99 9,964,225
10,000,000 Petrofina (Delaware), Inc. .................................... 4.800% 06/08/99 9,949,333
-------------
29,767,619
-------------
FINANCIAL SERIVCES 17.3%
10,000,000 American Express Credit Corp. ................................. 4.790% 09/30/99 9,797,756
10,000,000 American General Finance Corp. ................................ 4.820% 05/05/99 9,994,644
10,000,000 American General Finance Corp. ................................ 4.800% 07/15/99 9,900,000
10,000,000 Associates First Capital Corp. ................................ 4.810% 07/20/99 9,893,112
10,000,000 Associates First Capital Corp. ................................ 4.800% 07/22/99 9,890,668
10,000,000 C.I.T. Group Holdings, Inc. ................................... 4.850% 05/14/99 9,982,486
7,500,000 Dresdner U.S. Finance, Inc. ................................... 4.830% 08/09/99 7,399,375
10,000,000 Goldman Sachs Group, LP ....................................... 4.850% 09/02/99 9,832,944
10,000,000 Morgan (J.P.) & Co., Inc. ..................................... 4.830% 07/12/99 9,903,400
15,000,000 Morgan (J.P.) & Co., Inc. ..................................... 4.800% 09/08/99 14,740,000
10,000,000 Toronto Dominion Holdings USA, Inc. ........................... 4.780% 07/23/99 9,889,794
15,000,000 Transamerica Finance Corp. .................................... 4.790% 06/23/99 14,894,221
-------------
126,118,400
-------------
</TABLE>
The accompanying notes are an integral part of these financial statements.
46 FREMONT MUTUAL FUNDS
<PAGE>
FREMONT MONEY MARKET FUND
APRIL 30, 1999 (UNAUDITED)
STATEMENT OF INVESTMENTS IN SECURITIES AND NET ASSETS
<TABLE>
<CAPTION>
Discount Maturity Value
Face Amount Issuer Rate Date (Note 1)
- ------------------------------------------------------------------------------------------------------------------------------
SOVEREIGN 5.7%
<S> <C> <C> <C> <C>
$ 10,000,000 British Columbia, Province of ................................. 4.790% 08/27/99 $ 9,842,994
7,500,000 British Columbia, Province of ................................. 4.800% 09/07/99 7,371,000
15,000,000 Caisse d'Amortissement de la Dette Sociale .................... 4.790% 09/10/99 14,736,550
10,000,000 Swedish Export Credit Corp. ................................... 4.870% 09/01/99 9,833,608
-------------
41,784,152
-------------
HEALTH CARE 4.8%
** 10,000,000 Glaxo Wellcome PLC ............................................ 4.810% 05/04/99 9,995,992
** 10,000,000 Queen's Health Systems, Inc. .................................. 4.840% 05/10/99 9,987,900
** 15,000,000 Queen's Health Systems, Inc. .................................. 4.850% 06/03/99 14,933,313
-------------
34,917,205
-------------
INSURANCE 7.5%
** 10,000,000 Allianz of America Finance Corp. .............................. 4.800% 06/22/99 9,930,667
** 10,000,000 Allianz of America Finance Corp. .............................. 4.810% 07/13/99 9,902,464
** 15,000,000 St. Paul Cos. ................................................. 4.810% 05/13/99 14,975,950
** 10,000,000 Swiss Re Financial Products ................................... 4.780% 06/01/99 9,958,839
** 10,000,000 Swiss Re Financial Products ................................... 4.860% 06/11/99 9,944,650
-------------
54,712,570
-------------
RAW MATERIALS 8.2%
10,000,000 Akzo Nobel, Inc. .............................................. 4.840% 06/14/99 9,940,844
10,000,000 Akzo Nobel, Inc. .............................................. 4.840% 06/21/99 9,931,433
** 10,000,000 Henkel Corp. .................................................. 4.800% 05/12/99 9,985,333
** 10,000,000 Henkel Corp. .................................................. 4.820% 06/14/99 9,941,089
** 10,000,000 Rio Tinto America, Inc. ....................................... 4.820% 06/09/99 9,947,783
** 10,000,000 Rio Tinto America, Inc. ....................................... 4.830% 06/14/99 9,940,967
-------------
59,687,449
-------------
UTILITIES 3.4%
10,000,000 Alcatel Alsthom, Inc. ......................................... 4.840% 07/06/99 9,911,267
15,000,000 Alcatel Alsthom, Inc. ......................................... 4.800% 07/08/99 14,864,000
24,775,267
-------------
TOTAL COMMERCIAL PAPER (Cost $ 645,085,184) 645,085,184
-------------
Shares/ Coupon
Face Amount Issuer Rate
- ------------------------------------------------------------------------------------------------------------------------------
OTHER SHORT-TERM SECURITIES 12.0%
2,436,944 SSgA Prime Money Market Fund .............................................................. 2,436,944
$ 5,000,000 Bayerische Landesbank Girozentrale, YCD ....................... 5.720% 05/06/99 4,999,982
15,000,000 BMW US Capital Corp., DN (a) .................................. 4.790% 06/25/99 14,890,229
10,000,000 Deutsche Bank NY, YCD ......................................... 5.050% 02/09/00 9,990,113
10,000,000 FHLB, AN ...................................................... 4.900% 01/14/00 9,999,788
10,000,000 FHLB, AN ...................................................... 5.070% 10/08/99 10,000,000
10,000,000 FNMA, DN (a) .................................................. 4.750% 05/03/99 9,997,361
10,000,000 FNMA, DN (a) .................................................. 4.750% 06/10/99 9,947,222
10,000,000 FNMA, DN (a) .................................................. 5.160% 08/20/99 9,840,900
5,000,000 Swiss Bank Corp., YCD ......................................... 5.740% 06/11/99 5,000,086
-------------
TOTAL OTHER SHORT-TERM SECURITIES (Cost $87,102,625) 87,102,625
-------------
TOTAL INVESTMENTS (Cost $732,187,809), 100.5% 732,187,809
OTHER ASSETS AND LIABILITIES, NET, (0.5)% (3,331,783)
-------------
NET ASSETS, 100.0% $ 728,856,026
=============
</TABLE>
The accompanying notes are an integral part of these financial statements.
FREMONT MUTUAL FUNDS 47
<PAGE>
FREMONT CALIFORNIA INTERMEDIATE TAX-FREE FUND
APRIL 30, 1999 (UNAUDITED)
STATEMENT OF INVESTMENTS IN SECURITIES AND NET ASSETS
<TABLE>
<CAPTION>
Coupon Maturity Value
Face Amount Issuer Rate Date (Note 1)
- ------------------------------------------------------------------------------------------------------------------------------
MUNICIPAL BONDS 98.2%
<S> <C> <C> <C>
$ 1,000,000 City of Anaheim, Public Finance Authority Revenue Bond,
Anaheim Electric Utility Projects .......................... 5.600% 10/01/16 $ 1,042,060
500,000 Berkeley Unified School District, Revenue
Refunding Ser. 1998 (FGIC Insured) ......................... 4.550% 08/01/10 505,430
1,000,000 Big Bear Area Regional Wastewater Agency, California Revenue . 5.000% 04/01/10 1,047,360
235,000 California Health Facilities Financial Authority Revenue,
Kaiser Permanente Ser. B ................................... 5.250% 10/01/13 237,707
200,000 California Health Facilities Financial Authority Revenue,
UCSF-Stanford Health Care Ser. A ........................... 5.000% 11/15/18 197,418
1,000,000 California State Dept. of Veterans Affairs,
Home Purchase Revenue 1991 Ser. A .......................... 6.450% 08/01/00 1,038,280
1,015,000 California State Dept. of Water Resources,
Central Valley Project Revenue ............................. 4.750% 12/01/16 998,912
1,000,000 California State Dept. of Water Resources
Central Valley Project Revenue Ser. H ...................... 6.400% 12/01/00 1,048,250
500,000 California State Dept. of Water Resources,
Central Valley Project Revenue Ser. M ...................... 4.800% 12/01/07 517,175
500,000 California State Dept. of Water Resources,
Central Valley Project Revenue Ser. T ...................... 5.125% 12/01/12 522,850
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 1,091,110
1,000,000 California State Public Works Board,
Lease Revenue Dept. of Corrections, Prison D ............... 5.100% 06/01/06 1,055,830
1,000,000 Contra Costa Transportation Authority,
Sales Tax Revenue 1991 Ser. A .............................. 5.250% 10/01/08 1,046,260
1,000,000 Contra Costa Water Authority, Water Treatment
Revenue Refunding 1993 Ser. A (FGIC Insured) ............... 6.400% 03/01/01 1,052,320
1,000,000 Contra Costa Water District, Water Revenue Ser. F
(FGIC Insured) ............................................. 5.300% 10/01/05 1,061,410
1,500,000 East Bay CA MUD, Water System Subordinated Revenue Ser. 1998 . 5.250% 06/01/14 1,574,190
1,300,000 Fremont California Unified School District Alameda
County Refunding Ser. A (FGIC Insured) ..................... 4.700% 08/01/15 1,286,662
1,000,000 City of Fairfield, Water Revenue (AMBAC Insured) 5.250% 04/01/14 1,032,430
1,225,000 City of Industry, Urban Development Agency
Tax Allocation (MBIA Insured) .............................. 5.250% 05/01/12 1,279,574
1,000,000 City of Irvine, Assessment District No. 89-10,
Limited Obligation Refunding Improvement (MBIA Insured) .... 4.200% 09/02/05 1,010,780
1,000,000 City of Los Angeles, Convention & Exhibition Center Authority,
Lease Revenue Bonds Refunding Ser. A ....................... 5.200% 08/15/09 1,049,370
1,000,000 Los Angeles Dept. of Water & Power,
Electric Plant Revenue Refunding ........................... 5.500% 09/01/07 1,076,790
1,000,000 Los Angeles Dept. of Water & Power,
Electric Plant Revenue ..................................... 4.700% 10/15/06 1,036,310
1,000,000 Los Angeles Dept. of Water & Power,
Waterworks Revenue Refunding ............................... 5.625% 04/15/08 1,066,330
1,500,000 City of Los Angeles, Wastewater System
Revenue Ser. A (MBIA Insured) .............................. 5.000% 12/01/11 1,559,355
1,000,000 City of Los Angeles, Wastewater System
Revenue Ser. B (MBIA Insured) .............................. 5.700% 06/01/23 1,057,770
500,000 Los Angeles County Public Works Finance Authority,
Lease Revenue Ser. B (MBIA Insured) ........................ 5.000% 10/01/04 528,745
1,000,000 Los Angeles County Public Works Finance Authority,
Regional Park and Open Space District, Ser. A .............. 5.250% 09/01/09 1,073,550
1,000,000 Los Angeles County Public Works Finance Authority,
Regional Park and Open Space District, Ser. A .............. 5.000% 10/01/16 1,006,010
750,000 Los Angeles County Sanitation District Finance Authority,
1993 Ser. A ................................................ 5.250% 10/01/06 799,095
440,000 Los Angeles Municipal Improvement Corporate Lease,
Special Tax-Police Emergency Revenue Ser. D ................ 5.000% 09/01/12 447,924
1,000,000 M-S-R Public Power Agency, San Juan Project Revenue Ser. F ... 5.650% 07/01/03 1,076,050
1,000,000 Metropolitan Water District of Southern California,
Waterworks GO Refunding 1993 Ser. A ........................ 5.250% 03/01/05 1,067,640
1,000,000 Modesto High School District, 1993 GO Refunding
(FGIC Insured) ............................................. 5.300% 08/01/04 1,070,510
1,000,000 Modesto Irrigation District Finance Authority,
Domestic Water Project Revenue 1992 Ser. A (AMBAC Insured) . 5.650% 09/01/03 1,083,090
500,000 Northern California Power Agency, Geothermal
Project #3 Revenue Ser. A .................................. 5.600% 07/01/06 536,675
500,000 Northern California Power Agency, Geothermal
Project #3 Revenue Refunding Ser. A ........................ 5.600% 07/01/06 550,555
1,000,000 Orange County Transportation Authority, Measure M
Sales Tax Revenue First Ser. 1992 .......................... 6.000% 02/15/06 1,113,760
1,000,000 Orange County Transportation Authority, Measure M Sales
Tax Revenue Second Senior Ser. 1994 (FGIC Insured) ......... 5.000% 02/15/08 1,057,860
500,000 City of Pasadena, GO Refunding Police and Jail Building 1993 . 5.000% 06/01/07 519,725
500,000 City of Pasadena, Electric Works Revenue Ser. 1990 ........... 6.500% 08/01/99 504,145
1,000,000 Rancho Cucamonga RDA, 1994 Tax Allocation
Refunding (MBIA Insured) ................................... 5.000% 09/01/07 1,048,300
1,000,000 City of Riverside, Electric Revenue Refunding 1993 ........... 5.000% 10/01/06 1,051,750
1,000,000 City of Riverside, Electric Revenue
Refunding 1993 (AMBAC Insured) ............................. 5.000% 10/01/13 1,011,210
315,000 City of Riverside, Electric Revenue Refunding ................ 6.100% 10/01/00 327,077
685,000 City of Riverside, Electric Revenue .......................... 6.100% 10/01/00 710,879
1,000,000 Sacramento MUD, Electric Revenue 1991 Ser. Y ................. 6.250% 09/01/00 1,038,830
2,000,000 Sacramento MUD, Electric Revenue 1997 Ser. L ................. 5.125% 07/01/15 2,054,120
1,000,000 Sacramento County Sanitation District Finance Authority,
Revenue Bond (MBIA Insured) ................................ 5.000% 12/01/08 1,045,290
</TABLE>
The accompanying notes are an integral part of these financial statements.
48 FREMONT MUTUAL FUNDS
<PAGE>
FREMONT CALIFORNIA INTERMEDIATE TAX-FREE FUND
APRIL 30, 1999 (UNAUDITED)
STATEMENT OF INVESTMENTS IN SECURITIES AND NET ASSETS
<TABLE>
<CAPTION>
Coupon Maturity Value
Face Amount Issuer Rate Date (Note 1)
- ------------------------------------------------------------------------------------------------------------------------------
MUNICIPAL BONDS (cont.)
<S> <C> <C> <C>
$ 1,000,000 Sacramento County Sanitation District Finance Authority,
Revenue Bond (MBIA Insured) ................................ 5.125% 12/01/13 $ 1,018,970
1,000,000 San Bernardino County Transportation Authority,
Sales Tax Revenue 1992 Ser. A (FGIC Insured) ............... 6.000% 03/01/03 1,080,060
1,000,000 City and County of San Francisco RDA, Lease Revenue Ser. 1991
(George R. Moscone Convention Center) (AMBAC Insured) ...... 6.100% 05/01/03 1,086,280
1,000,000 City and County of San Francisco International Airport,
Revenue Second Ser. Issue 1 (AMBAC Insured) ................ 5.800% 10/01/05 1,076,930
1,000,000 City and County of San Francisco Sewer,
Revenue Refunding Ser. 1992 (AMBAC Insured) ................ 6.200% 10/01/00 1,040,280
1,000,000 City and County of San Francisco RDA, Tax Allocation 1997 Ser B 5.700% 08/01/14 1,077,690
1,000,000 City of San Jose, Finance Authority
(Convention Center Refunding Project)
1993 Ser. C (MBIA Insured) ................................. 5.750% 09/01/03 1,060,650
500,000 San Jose-Santa Clara Water Financing Authority, Sewer Revenue 5.250% 11/15/12 523,180
1,000,000 Santa Margarita/Dana Point Authority Orange County,
Revenue Bond Ser. A ........................................ 5.375% 08/01/04 1,073,070
330,000 San Mateo County Sewer Revenue Ser. A (FGIC Insured) ......... 4.850% 08/01/17 328,987
1,000,000 San Mateo County Transit District Ser. A (MBIA Insured) ...... 4.500% 06/01/13 982,050
1,000,000 Santa Monica-Malibu Unified School District,
Public School Facilities Reconstruction Projects ........... 5.500% 08/01/18 1,089,480
1,000,000 Southern California Public Power Authority, Mead-Phoenix
Project Revenue 1994 Ser. A (AMBAC Insured) ................ 4.750% 07/01/08 1,033,380
1,000,000 Southern California Public Power Authority,
Mead-Adelanto Project Revenue 1994 Ser. A (AMBAC Insured) .. 4.750% 07/01/09 1,027,770
1,000,000 Southern California Public Power Authority,
Palo Verde Power Projects Revenue 1993 Ser.A ............... 5.100% 07/01/06 1,060,470
1,250,000 City of Stockton, Wastewater System Project Ser. A ........... 4.125% 09/01/06 1,258,613
1,000,000 University of California, Housing System Revenue 1993
Ser. A (MBIA Insured) ...................................... 5.500% 11/01/08 1,069,200
500,000 University of California, Research Facilities
Revenue 1995 Ser. C (AMBAC Insured) ........................ 5.100% 09/01/07 527,480
1,000,000 West & Central Basin Finance Authority,
West Basin Water Revenue Refunding Project (AMBAC Insured) . 5.125% 08/01/06 1,059,420
1,000,000 City of Whittier, Solid Waste Revenue Ser. A (AMBAC Insured) . 5.375% 08/01/14 1,049,460
1,500,000 Yucaipa School Facilities Finance Authority,
1995 Sweetwater Refunding (MBIA Insured) ................... 6.000% 09/01/10 1,602,931
-------------
TOTAL MUNICIPAL BONDS (Cost $63,633,723) 67,341,074
-------------
Shares
- ------------------------------------------------------------------------------------------------------------------------------
SHORT-TERM SECURITIES 0.8%
533,614 Provident Institutional Fund: Municipal Fund for California Investors, Inc. ............... 533,614
-------------
TOTAL SHORT-TERM SECURITIES (Cost $533,614) 533,614
-------------
TOTAL INVESTMENTS (Cost $64,167,337), 99.0% 67,874,688
OTHER ASSETS & LIABILITIES, NET, 1.0% 679,048
-------------
NET ASSETS, 100.0% 68,553,736
=============
</TABLE>
The accompanying notes are an integral part of these financial statements.
FREMONT MUTUAL FUNDS 49
<PAGE>
FREMONT MUTUAL FUNDS, INC.
NOTES TO STATEMENTS OF INVESTMENTS IN SECURITIES AND NET ASSETS
The following footnotes and abbreviations are a reference point for the
Statements of Investments in Securities and Net Assets on pages 26 through 51.
* Non-income producing security
** These transactions are generally issued to institutional investors. Any
resale must be in an exempt transaction pursuant to Section 4(2) of the
Securities Act of 1933.
(a) Represents discount rate or yield to maturity at the date of acquisition.
(b) Represents ownership of at least 5% of the voting securities of the issuer
and is, therefore, an affiliate as defined in the Investment Company Act of
1940; See Note 2 of "Notes to Financial Statements."
+ On deposit with broker for initial margin on futures contracts (Note 1).
PORTFOLIO ABBREVIATIONS
ADR American Depository Receipt
AMBAC American Municipal Bond Assurance Corp.
AN Agency Note
ARM Adjustable Rate Mortgage
CMO Collateralized Mortgage Obligation
CP Commercial Paper
DN Discount Note
FGIC Financial Guaranty Insurance Corp.
FHLB Federal Home Loan Bank
FHLMC Federal Home Loan Mortgage Corp.
FNMA Federal National Mortgage Association
FRN Floating Rate Note
GDR Global Depository Receipt
GNMA Government National Mortgage Association
GO General Obligation
MBIA Municipal Bond Investor Assurance Corp.
MTN Medium Term Note
MUD Municipal Utility District
PAC Planned Amortization Class
RDA Redevelopment Agency
REIT Real Estate Investment Trust
REMIC Real Estate Mortgage Investment Conduit
TBA To Be Announced
YCD Yankee Certificate of Deposit
CURRENCY ABBREVIATIONS
ARS Argentina Pesos
AUS$ Australian Dollar
(pound) British Pound
CAN$ Canadian Dollar
DKK Denmark Kroner
e Euro
DM German Deutschemark
GRD Greek Drachma
(Y) Japanese Yen
NZ$ New Zealand Dollar
SEK Swedish Krona
US$ U.S. Dollar
The accompanying notes are an integral part of these financial statements.
50 FREMONT MUTUAL FUNDS
<PAGE>
FREMONT MUTUAL FUNDS, INC.
NOTES TO STATEMENTS OF INVESTMENTS IN SECURITIES AND NET ASSETS
APRIL 30, 1999 (UNAUDITED)
COUNTRY DIVERSIFICATION
<TABLE>
<CAPTION>
Country Country International International Emerging
Code Name Global Growth Small Cap Markets Bond
- ---------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
AR Argentina 0.2% -- -- -- 2.7%
AS Austria 0.1% -- -- -- --
AU Australia 0.9% 5.3% -- -- --
BE Belgium 0.2% -- -- -- --
BR Brazil -- 0.6% -- 5.5% --
CH China -- -- -- 3.4% --
CN Canada 2.8% 5.2% 2.3% -- --
CR Croatia -- -- -- 2.1% --
DK Denmark 0.6% -- -- -- --
ES Estonia -- -- -- 1.9% --
FI Finland 0.1% 4.0% -- -- --
FR France 4.0% 5.7% 5.2% -- --
GM Germany 6.9% 8.8% 1.9% -- --
GR Greece -- -- -- 2.5% --
HK Hong Kong 0.1 1.6% 4.9% 5.5% --
ID Indonesia 0.1% -- -- 2.5% --
IN India 0.1% -- -- 8.6% --
IR Ireland 0.6% -- 5.9% -- --
IS Israel -- -- 11.2% 4.8% --
IT Italy 0.9% 5.0% 4.8% -- --
JO Jordan -- -- -- 2.9% --
JP Japan 3.7% 22.4% -- -- --
MX Mexico 0.5% 1.7% -- 10.4% 1.4%
MY Malaysia 0.1% -- -- -- --
NL Netherlands 2.1% 4.4% 4.5% -- --
NO Norway -- 1.0% 14.3% -- --
NZ New Zealand 1.4% -- -- -- 0.1%
PH Philippines 0.1% -- -- -- 1.2%
PO Poland -- -- -- 2.9% --
PT Portugal 0.2% -- 4.0% -- --
RU Russia -- -- -- 1.1% --
SA South Africa -- 1.1% -- 13.4% --
SG Singapore 0.2% 0.9% -- 0.6% --
SK South Korea 0.3% 0.7% -- 10.8% 0.9%
SP Spain 1.5% 1.1% -- -- --
SW Sweden 1.2% 1.0% 5.1% -- --
SZ Switzerland 1.6% 4.1% 17.5% -- --
TH Thailand 0.2% -- -- 8.4% --
TW Taiwan 0.1% 1.1% -- 2.3% --
UK United Kingdom 6.7% 16.2% 14.2% -- --
US United States 62.5% 8.1% 4.2% 10.4% 93.7%
----- ----- ----- ----- -----
Total 100.0% 100.0% 100.0% 100.0% 100.0%
===== ===== ===== ===== =====
</TABLE>
The Fremont Funds not listed above include 100% domestic securities in their
respective portfolios.
The accompanying notes are an integral part of these financial statements.
FREMONT MUTUAL FUNDS 51
<PAGE>
FREMONT MUTUAL FUNDS, INC.
APRIL 30, 1999 (UNAUDITED)
STATEMENT OF ASSETS AND LIABILITIES
(All numbers in thousands except net asset value per share)
<TABLE>
<CAPTION>
International International Emerging
Global Growth Small Cap Markets
Fund Fund Fund Fund
---------------------------------------------------------
Assets:
<S> <C> <C> <C> <C>
Investments in securities at cost $ 634,470 $ 34,460 $ 8,697 $ 9,600
========= ======== ========= ========
Investments in securities at value (Note 1) 675,298 39,908 8,576 9,585
Cash -- 175 1 --
Dividends and interest receivable 7,178 128 41 40
Receivable for securities sold 26,616 279 22 --
Receivable from sale of fund shares 207 26 1 5
Unrealized appreciation on foreign
currency contracts (Note 1) 3,696 169 -- --
Prepaid expense 5 -- -- 8
Unamortized organization costs (Note 3) -- -- -- --
--------- -------- --------- --------
Total assets 713,000 40,685 8,641 9,638
--------- -------- --------- --------
Liabilities:
Bank overdraft 406 -- -- --
Payable for securities purchased 40,974 1,675 -- --
Payable to management company -- 21 4 2
Payable for fund shares redeemed 451 -- -- 437
Variation margin payable 1,123 -- -- --
Unrealized depreciation on foreign
currency contracts (Note 1) 1,166 165 -- --
Accrued expenses:
Investment advisory, administrative
and distribution fees 410 45 9 10
Other 113 -- -- --
--------- -------- --------- --------
Total liabilities 44,643 1,906 13 449
--------- -------- --------- --------
Net assets $ 668,357 $ 38,779 $ 8,628 $ 9,189
========= ======== ========= ========
Net assets consist of:
Paid in capital $ 582,106 $ 32,507 $ 11,133 $ 15,563
Undistributed net investment income (loss) 11,504 205 11 18
Unrealized appreciation (depreciation)
on investments 41,772 5,449 (121) (15)
Unrealized appreciation (depreciation)
on foreign currency contracts and other
assets and liabilities 2,434 (1) (1) (4)
Accumulated net realized gain (loss) 30,541 619 (2,394) (6,373)
--------- -------- --------- --------
Net assets $ 668,357 $ 38,779 $ 8,628 $ 9,189
========= ======== ========= ========
Shares of capital stock outstanding 45,892 3,423 1,172 1,346
========= ======== ========= ========
Net asset value per share $ 14.56 $ 11.33 $ 7.36 $ 6.82
========= ======== ========= ========
U.S. U.S. Real Estate
Micro-Cap Small Cap Growth Securities
Fund Fund Fund Fund
-------------------------------------------------------
Assets:
Investments in securities at cost $ 165,481 $ 11,394 $ 114,774 $ 33,913
========= ======== ========= ========
Investments in securities at value (Note 1) 180,623 12,912 141,155 33,513
Cash 102 -- -- --
Dividends and interest receivable 34 7 132 112
Receivable for securities sold 3,616 194 6,255 622
Receivable from sale of fund shares 374 2 431 140
Unrealized appreciation on foreign
currency contracts (Note 1) -- -- -- --
Prepaid expense -- 11 3 --
Unamortized organization costs (Note 3) -- -- -- 8
--------- -------- --------- --------
Total assets 184,749 13,126 147,976 34,395
--------- -------- --------- --------
Liabilities:
Bank overdraft -- 32 4,168 --
Payable for securities purchased 4,514 383 2,087 1,701
Payable to management company -- 3 -- 38
Payable for fund shares redeemed 2,496 92 354 143
Variation margin payable -- -- 184 --
Unrealized depreciation on foreign
currency contracts (Note 1) -- -- -- --
Accrued expenses:
Investment advisory, administrative
and distribution fees 248 13 76 31
Other -- -- 51 --
--------- -------- --------- --------
Total liabilities 7,258 523 6,920 1,913
--------- -------- --------- --------
Net assets $ 177,491 $ 12,603 $ 141,056 $ 32,482
========= ======== ========= ========
Net assets consist of:
Paid in capital $ 141,104 $ 10,400 $ 100,897 $ 39,095
Undistributed net investment income (loss) (892) (40) 569 (134)
Unrealized appreciation (depreciation)
on investments 15,142 1,518 26,759 (400)
Unrealized appreciation (depreciation)
on foreign currency contracts and other
assets and liabilities -- -- -- --
Accumulated net realized gain (loss) 22,137 725 12,831 (6,079)
--------- -------- --------- --------
Net assets $ 177,491 $ 12,603 $ 141,056 $ 32,482
========= ======== ========= ========
Shares of capital stock outstanding 7,429 1,029 8,617 3,982
========= ======== ========= ========
Net asset value per share $ 23.89 $ 12.24 $ 16.37 $ 8.16
========= ======== ========= ========
</TABLE>
The accompanying notes are an integral part of these financial statements.
FREMONT MUTUAL FUNDS PAGES 52 AND 53
<PAGE>
FREMONT MUTUAL FUNDS, INC.
APRIL 30, 1999 (UNAUDITED)
STATEMENT OF ASSETS AND LIABILITIES (cont.)
(All numbers in thousands except net asset value per share)
<TABLE>
<CAPTION>
California
Intermediate
Bond Money Market Tax-Free
Fund Fund Fund
----------------------------------------
Assets:
<S> <C> <C> <C>
Investments in securities at cost $ 293,319 $ 732,188 $ 64,167
========= ========= =========
Investments in securities at value (Note 1) 294,012 732,188 67,875
Cash -- -- 107
Dividends and interest receivable 2,628 1,091 822
Receivable for securities sold 67,168 -- --
Receivable from sale of fund shares 790 1,039 4
Unrealized appreciation on foreign
currency contracts (Note 1) 40 32 --
Prepaid expense 31 -- --
--------- --------- ---------
Total assets 364,669 734,350 68,808
--------- --------- ---------
Liabilities:
Bank overdraft 3,244 -- --
Liabilities for options written (Note 4) 111 -- --
Dividends payable to shareholders 34 6 205
Payable for securities purchased 134,918 -- --
Payable to management company 1 -- 6
Payable for fund shares redeemed 277 5,214 --
Variation margin payable 210 -- --
Unrealized depreciation on foreign currency
contracts (Note 1) 57 -- --
Accrued expenses:
Investment advisory, administrative
and distribution fees 94 218 28
Other 30 56 15
--------- --------- ---------
Total liabilities 138,976 5,494 254
--------- --------- ---------
Net assets $ 225,693 $ 728,856 $ 68,554
========= ========= =========
Net assets consist of:
Paid in capital $ 228,073 $ 728,856 $ 64,846
Undistributed net investment income 46 -- --
Unrealized appreciation on investments 673 -- 3,708
Unrealized depreciation on foreign currency
contracts and other assets and liabilities (17) -- --
Accumulated net realized loss (3,082) -- --
--------- --------- ---------
Net assets $ 225,693 $ 728,856 $ 68,554
========= ========= =========
Shares of capital stock outstanding 22,492 728,856 6,148
========= ========= =========
Net asset value per share $ 10.03 $ 1.00 $ 11.15
========= ========= =========
</TABLE>
The accompanying notes are an integral part of these financial statements.
54 FREMONT MUTUAL FUNDS
<PAGE>
This page left blank intentionally.
FREMONT MUTUAL FUNDS 55
<PAGE>
FREMONT MUTUAL FUNDS, INC.
SIX MONTHS ENDED APRIL 30, 1999 (UNAUDITED)
STATEMENT OF OPERATIONS
(All numbers in thousands)
<TABLE>
<CAPTION>
International International Emerging
Global Growth Small Cap Markets
Fund Fund Fund Fund
---------------------------------------------------------
Investment Income:
<S> <C> <C> <C> <C>
Interest $ 10,820 $ 18 $ 12 $ 19
Dividends 1,618 287 52 60
--------- --------- --------- ---------
Total income* 12,438 305 64 79
--------- --------- --------- ---------
Expenses:
Investment advisory and
administrative fees (Note 2) 2,388 245 52 47
Shareholder servicing fees 60 -- 11 14
Custody fees 110 28 2 12
Distribution fees (Note 2) -- 53 -- 10
Accounting fees 93 13 7 8
Audit and legal fees 19 12 12 13
Directors' fees (Note 2) 2 2 2 2
Registration fees 16 7 9 6
Reports to shareholders 17 2 2 4
Other 22 2 1 5
--------- --------- --------- ---------
Total expenses before reductions 2,727 364 98 121
Earned credits (Note 2) (2) -- -- --
Expenses waived and/or
reimbursed by Advisor (Note 2) -- (44) (43) (60)
--------- --------- --------- ---------
Total net expenses 2,725 320 55 61
--------- --------- --------- ---------
Net investment income (loss) 9,713 (15) 9 18
--------- --------- --------- ---------
Realized and unrealized gain
(loss) from investments
and foreign currency:
Net realized gain (loss) from:
Investments 41,491 909 (253) (1,348)
Foreign currency transactions (4,512) (287) (15) (6)
Net unrealized appreciation (depreciation) on:
Investments 12,245 6,928 1,036 2,562
Translation of assets and liabilities
in foreign currencies 13,554 302 (2) (7)
--------- --------- --------- ---------
Net realized and unrealized gain
from investments
and foreign currency 62,778 7,852 766 1,201
--------- --------- --------- ---------
Net increase in net assets
resulting from operations $ 72,491 $ 7,837 $ 775 $ 1,219
========= ========= ========= =========
U.S. U.S. Real Estate
Micro-Cap Small Cap Growth Securities
Fund Fund Fund Fund
---------------------------------------------------------
Investment Income:
Interest $ 512 $ 29 $ 711 $ 53
Dividends 40 4 754 897
--------- --------- --------- ---------
Total income* 552 33 1,465 950
--------- --------- --------- ---------
Expenses:
Investment advisory and
administrative fees (Note 2) 1,444 56 506 157
Shareholder servicing fees -- 12 57 22
Custody fees -- 7 10 7
Distribution fees (Note 2) -- 12 -- 39
Accounting fees -- 6 19 8
Audit and legal fees -- 9 10 10
Directors' fees (Note 2) -- 2 2 2
Registration fees -- -- 9 11
Reports to shareholders -- 2 15 15
Other -- 8 12 --
--------- --------- --------- ---------
Total expenses before reductions 1,444 114 640 271
Earned credits (Note 2) -- -- (2) --
Expenses waived and/or
reimbursed by Advisor (Note 2) -- (41) -- (35)
--------- --------- --------- ---------
Total net expenses 1,444 73 638 236
--------- --------- --------- ---------
Net investment income (loss) (892) (40) 827 714
--------- --------- --------- ---------
Realized and unrealized gain
(loss) from investments
and foreign currency:
Net realized gain (loss) from:
Investments 28,330 1,590 14,459 (1,880)
Foreign currency transactions -- -- -- --
Net unrealized appreciation (depreciation) on:
Investments 27,699 1,386 14,096 2,796
Translation of assets and liabilities
in foreign currencies -- -- -- --
--------- --------- --------- ---------
Net realized and unrealized gain
from investments
and foreign currency 56,029 2,976 28,555 916
--------- --------- --------- ---------
Net increase in net assets
resulting from operations $ 55,137 $ 2,936 $ 29,382 $ 1,630
========= ========= ========= =========
</TABLE>
*Net of foreign taxes withheld of $104 for the Global Fund, $36 for the
International Growth Fund, $7 for the International Small Cap Fund and $3 for
the Emerging Markets Fund.
The accompanying notes are an integral part of these financial statements.
FREMONT MUTUAL FUNDS PAGES 56 AND 57
<PAGE>
FREMONT MUTUAL FUNDS, INC.
SIX MONTHS ENDED APRIL 30, 1999 (UNAUDITED)
STATEMENT OF OPERATIONS (CONT.)
(All numbers in thousands)
<TABLE>
<CAPTION>
California
Intermediate
Bond Money Market Tax-Free
Fund Fund Fund
--------- --------- ---------
Investment Income:
<S> <C> <C> <C>
Interest $ 6,943 $ 18,494 $ 1,667
--------- --------- ---------
Total income 6,943 18,494 1,667
--------- --------- ---------
Expenses:
Investment advisory and
administrative fees (Note 2) 594 1,286 170
Shareholder servicing fees 28 61 8
Custody fees 15 25 3
Accounting fees 31 75 10
Audit and legal fees 10 10 9
Directors' fees (Note 2) 2 2 1
Registration fees 10 26 1
Reports to shareholders 7 10 --
Other -- 33 --
--------- --------- ---------
Total expenses before reductions 697 1,528 202
Earned credits (Note 2) (2) (2) --
Expenses waived and/or reimbursed
by Advisor (Note 2) (89) (357) (46)
--------- --------- ---------
Total net expenses 606 1,169 156
--------- --------- ---------
Net investment income 6,337 17,325 1,511
--------- --------- ---------
Realized and unrealized gain (loss)
from investments
and foreign currency:
Net realized gain (loss) from:
Investments (1,453) -- --
Transactions in written options 28 -- --
Foreign currency transactions (178) -- --
Net unrealized appreciation (depreciation) on:
Investments (3,390) -- (556)
Translation of assets and liabilities
in foreign currencies 144 -- --
--------- --------- ---------
Net realized and unrealized
loss from investments
and foreign currency (4,849) -- (556)
--------- --------- ---------
Net increase in net assets
resulting from operations $ 1,488 $ 17,325 $ 955
========= ========= =========
</TABLE>
The accompanying notes are an integral part of these financial statements.
58 FREMONT MUTUAL FUNDS
<PAGE>
This page left blank intentionally.
FREMONT MUTUAL FUNDS 59
<PAGE>
FREMONT MUTUAL FUNDS, INC.
APRIL 30, 1999
STATEMENT OF CHANGES IN NET ASSETS
For the Six Months Ended April 30, 1999 (Unaudited)
and the Year Ended October 31, 1998
(All numbers in thousands)
<TABLE>
<CAPTION>
Global International Growth International Small Cap
Fund Fund Fund
----------------------- ----------------------- -----------------------
4/30/99 10/31/98 4/30/99 10/31/98 4/30/99 10/31/98
--------- --------- --------- --------- --------- ---------
Increase (decrease) in net assets:
From operations:
<S> <C> <C> <C> <C> <C> <C>
Net investment income (loss) $ 9,713 $ 18,836 $ (15) $ 215 $ 9 $ 57
Net realized gain (loss) from investments
and transactions in written options 41,491 38,842 909 3,620 (253) (1,915)
Net realized gain (loss) from
foreign currency transactions (4,512) 560 (287) 83 (15) (52)
Net unrealized appreciation (depreciation)
on investments 12,245 (24,416) 6,928 (3,717) 1,036 513
Net unrealized appreciation (depreciation)
on translation of ssets and liabilities
in foreign currencies 13,554 (9,032) 302 (301) (2) (2)
--------- --------- --------- --------- --------- ---------
Net increase (decrease) in net assets
from operations 72,491 24,790 7,837 (100) 775 (1,399)
--------- --------- --------- --------- --------- ---------
Distributions to shareholders from:
Net investment income (8,685) (11,426) (38) -- (10) (210)
Net realized gains (41,632) (13,937) (3,613) (390) -- (77)
--------- --------- --------- --------- --------- ---------
Total distributions to shareholders (50,317) 25,363 (3,651) (390) (10) (287)
--------- --------- --------- --------- --------- ---------
From capital share transactions:
Proceeds from shares sold 115,639 357,906 41,485 37,746 4,798 6,320
Payments for shares redeemed (149,861 (416,588) (49,432) (34,395) (2,639) (7,741)
Reinvested dividends 49,240 24,673 917 389 10 267
--------- --------- --------- --------- --------- ---------
Net increase (decrease) in net assets
from capital share transactions 15,018 34,009 (7,030) 3,470 2,169 (1,154)
--------- --------- --------- --------- --------- ---------
Net increase (decrease) in net assets 37,192 (34,582) (2,844) 2,980 2,934 (2,840)
Net assets at beginning of period 631,165 665,747 41,623 38,643 5,694 8,534
--------- --------- --------- --------- --------- ---------
Net assets at end of period $ 668,357 $ 631,165 $ 38,779 $ 41,623 $ 8,628 $ 5,694
========= ========= ========= ========= ========= =========
Undistributed net investment income (loss)
included in net assets, end of period $ 11,504 $ 10,476 $ 205 $ 257 $ 11 $ 12
========= ========= ========= ========= ========= =========
Capital transactions in shares:
Sold 8,040 25,153 3,935 3,452 676 863
Redeemed (10,414) (29,228) (4,633) (3,190) (371) (1,073)
Reinvested dividends 3,597 1,721 94 40 2 38
--------- --------- --------- --------- --------- ---------
Net increase (decrease) from capital
share transactions 1,223 2,354 (604) 302 307 (172)
========= ========= ========= ========= ========= =========
Emerging Markets U.S. Micro-Cap U.S. Small Cap
Fund Fund Fund
----------------------- ----------------------- -----------------------
4/30/99 10/31/98 4/30/99 10/31/98 4/30/99 10/31/98
--------- --------- --------- --------- --------- ---------
Increase (decrease) in net assets:
From operations:
Net investment income (loss) $ 18 $ 133 $ (892) $ (1,803) $ (40) $ (33)
Net realized gain (loss) from investments
and transactions in written options (1,348) (4,995) 28,330 (6,096) 1,590 (865)
Net realized gain (loss) from
foreign currency transactions (6) (180) -- -- -- --
Net unrealized appreciation (depreciation)
on investments 2,562 (1,181) 27,699 (24,169) 1,386 379
Net unrealized appreciation (depreciation)
on translation of ssets and liabilities
in foreign currencies (7) 12 -- -- -- --
--------- --------- --------- --------- --------- ---------
Net increase (decrease) in net assets
from operations 1,219 (6,211) 55,137 (32,068) 2,936 (519)
--------- --------- --------- --------- --------- ---------
Distributions to shareholders from:
Net investment income -- -- -- -- -- (2)
Net realized gains -- (179) -- (8,525) -- --
--------- --------- --------- --------- --------- ---------
Total distributions to shareholders -- (179) -- (8,525) -- (2)
--------- --------- --------- --------- --------- ---------
From capital share transactions:
Proceeds from shares sold 3,425 12,790 147,912 209,089 5,556 6,554
Payments for shares redeemed (4,197) (10,012) (145,574) (227,375) (3,256) (4,018)
Reinvested dividends -- 179 -- 7,388 -- 2
--------- --------- --------- --------- --------- ---------
Net increase (decrease) in net assets
from capital share transactions (772) 2,957 2,338 (10,898) 2,300 2,538
--------- --------- --------- --------- --------- ---------
Net increase (decrease) in net assets 447 (3,433) 57,475 (51,491) 5,236 2,017
Net assets at beginning of period 8,742 12,175 120,016 171,507 7,367 5,350
--------- --------- --------- --------- --------- ---------
Net assets at end of period $ 9,189 $ 8,742 $ 177,491 $ 120,016 $ 12,603 $ 7,367
========= ========= ========= ========= ========= =========
Undistributed net investment income (loss)
included in net assets, end of period $ 19 $ -- $ (892) $ -- $ (40) $ --
========= ========= ========= ========= ========= =========
Capital transactions in shares:
Sold 554 1,570 6,971 10,749 493 672
Redeemed (691) (1,377) (6,886) (11,337) (294) (401)
Reinvested dividends -- 19 -- 374 -- --
--------- --------- --------- --------- --------- ---------
Net increase (decrease) from capital
share transactions (137) 212 85 (214) 199 271
========= ========= ========= ========= ========= =========
</TABLE>
The accompanying notes are an integral part of these financial statements.
FREMONT MUTUAL FUNDS PAGES 60 AND 61
<PAGE>
FREMONT MUTUAL FUNDS, INC.
APRIL 30, 1999
STATEMENT OF CHANGES IN NET ASSETS
For the Six Months Ended April 30, 1999 (Unaudited)
and the Year Ended October 31, 1998
(All numbers in thousands)
<TABLE>
<CAPTION>
Growth Real Estate Securities Bond
Fund Fund Fund
------------------------- ------------------------- -------------------------
4/30/99 10/31/98 4/30/99 10/31/98 4/30/99 10/31/98
----------- ----------- ----------- ----------- ----------- -----------
Increase (decrease) in net assets:
From operations:
<S> <C> <C> <C> <C> <C> <C>
Net investment income $ 827 $ 2,043 $ 714 $ 788 $ 6,337 $ 8,053
Net realized gain (loss) from investments
and transactions in written options 14,459 19,371 (1,880) (4,253) (1,425) 4,415
Net realized gain (loss) from
foreign currency transactions -- -- -- -- (178) 518
Net unrealized appreciation (depreciation)
on investments 14,096 (10,948) 2,796 (3,196) (3,390) 1,035
Net unrealized appreciation (depreciation)
on translation of assets and liabilities
in foreign currencies -- -- -- -- 144 (148)
----------- ----------- ----------- ----------- ----------- -----------
Net increase (decrease) in net
assets from operations 29,382 10,466 1,630 (6,661) 1,488 13,873
----------- ----------- ----------- ----------- ----------- -----------
Distributions to shareholders from:
Net investment income (557) (1,813) (1,023) (572) (6,548) (8,128)
Net realized gains (21,146) (3,057) -- -- (3,911) (2,852)
----------- ----------- ----------- ----------- ----------- -----------
Total distributions to shareholders (21,703) (4,870) (1,023) (572) (10,459) (10,980)
----------- ----------- ----------- ----------- ----------- -----------
From capital share transactions:
Proceeds from shares sold 134,319 150,855 8,659 48,481 102,111 234,884
Payments for shares redeemed (171,507) (149,496) (11,170) (8,253) (105,696) (110,815)
Reinvested dividends 11,190 4,779 904 487 10,248 10,737
----------- ----------- ----------- ----------- ----------- -----------
Net increase (decrease) in net assets
from capital share transactions (25,998) 6,138 (1,607) 40,715 6,663 134,806
----------- ----------- ----------- ----------- ----------- -----------
Net increase (decrease) in net assets (18,319) 11,734 (1,000) 33,482 (2,308) 137,699
Net assets at beginning of period 159,375 147,641 33,482 -- 228,001 90,302
----------- ----------- ----------- ----------- ----------- -----------
Net assets at end of period $ 141,056 $ 159,375 $ 32,482 $ 33,482 $ 225,693 $ 228,001
=========== =========== =========== =========== =========== ===========
Undistributed net investment income (loss)
included in net assets, end of period $ 569 $ 299 $ (134) $ 216 $ 46 $ 257
=========== =========== =========== =========== =========== ===========
Capital transactions in shares:
Sold 8,471 9,485 1,099 5,047 10,017 22,744
Redeemed (10,873) (9,426) (1,428) (915) (10,372) (10,770)
Reinvested dividends 778 314 117 62 1,006 1,043
----------- ----------- ----------- ----------- ----------- -----------
Net increase (decrease) from
capital share transactions (1,624) 373 (212) 4,194 651 13,017
=========== =========== =========== =========== =========== ===========
<CAPTION>
Money Market California Intermediate
Fund Tax-Free Fund
------------------------- -------------------------
4/30/99 10/31/98 4/30/99 10/31/98
----------- ----------- ----------- -----------
Increase (decrease) in net assets:
From operations:
<S> <C> <C> <C> <C>
Net investment income $ 17,325 $ 28,765 $ 1,511 $ 2,981
Net realized gain (loss) from investments
and transactions in written options -- -- -- 19
Net realized gain (loss) from
foreign currency transactions -- -- -- --
Net unrealized appreciation (depreciation)
on investments -- -- (556) 1,520
Net unrealized appreciation (depreciation)
on translation of assets and liabilities
in foreign currencies -- -- -- --
----------- ----------- ----------- -----------
Net increase (decrease) in net
assets from operations 17,325 28,765 955 4,520
----------- ----------- ----------- -----------
Distributions to shareholders from:
Net investment income (17,325) (28,765) (1,511) (2,981)
Net realized gains -- -- (19) (29)
----------- ----------- ----------- -----------
Total distributions to shareholders (17,325) (28,765) (1,530) (3,010)
----------- ----------- ----------- -----------
From capital share transactions:
Proceeds from shares sold 754,829 1,514,353 5,931 4,170
Payments for shares redeemed (760,656) (1,258,495) (1,095) (8,717)
Reinvested dividends 17,392 28,281 281 2,739
----------- ----------- ----------- -----------
Net increase (decrease) in net assets
from capital share transactions 11,565 284,139 5,117 (1,808)
----------- ----------- ----------- -----------
Net increase (decrease) in net assets 11,565 284,139 4,542 (298)
Net assets at beginning of period 717,291 433,152 64,011 64,309
----------- ----------- ----------- -----------
Net assets at end of period $ 728,856 $ 717,291 $ 68,553 $ 64,011
=========== =========== =========== ===========
Undistributed net investment income (loss)
included in net assets, end of period $ -- $ -- $ -- $ --
=========== =========== =========== ===========
Capital transactions in shares:
Sold 754,829 1,514,353 530 376
Redeemed (760,656) (1,258,495) (98) (783)
Reinvested dividends 17,392 28,281 25 247
----------- ----------- ----------- -----------
Net increase (decrease) from
capital share transactions 11,565 284,139 457 (160)
=========== =========== =========== ===========
</TABLE>
#Period from December 31, 1997 (commencement of operations) to October 31, 1998.
The accompanying notes are an integral part of these financial statements.
FREMONT MUTUAL FUNDS PAGES 62 AND 63
<PAGE>
FREMONT MUTUAL FUNDS, INC.
FINANCIAL HIGHLIGHTS - APRIL 30, 1999
<TABLE>
<CAPTION>
GLOBAL FUND
(Unaudited) Year Ended October 31
Six Months Ended -------------------------------------------------------------
April 30, 1999 1998 1997 1996 1995 1994
-------------- --------- --------- --------- --------- ---------
Selected Per Share Data
for one share outstanding during the period
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period $ 14.13 $ 14.16 $ 15.11 $ 14.24 $ 13.13 $ 13.17
--------- --------- --------- --------- --------- ---------
Income from Investment Operations
Net investment income .21 .34 .45 .39 .40 .26
Net realized and unrealized gain (loss) 1.39 .17 1.31 1.49 1.24 (.03)
--------- --------- --------- --------- --------- ---------
Total investment operations 1.60 .51 1.76 1.88 1.64 .23
--------- --------- --------- --------- --------- ---------
Less Distributions
From net investment income (.20) (.25) (.52) (.44) (.50) (.14)
From net realized gains (.97) (.29) (2.19) (.57) (.03) (.13)
--------- --------- --------- --------- --------- ---------
Total distributions (1.17) (.54) (2.71) (1.01) (.53) (.27)
--------- --------- --------- --------- --------- ---------
Net asset value, end of period $ 14.56 $ 14.13 $ 14.16 $ 15.11 $ 14.24 $ 13.13
========= ========= ========= ========= ========= =========
Total Return 11.94% 3.62% 13.01% 13.72% 12.78% 1.74%
Ratios and Supplemental Data
Net assets, end of period (000s omitted) $ 668,357 $ 631,165 $ 665,747 $ 572,150 $ 482,355 $ 453,623
Ratio of expenses to average net assets .86%* .85% .85% .87% .88% .95%
Ratio of net investment income
to average net assets 3.05%* 2.80% 2.66% 2.66% 2.98% 2.47%
Portfolio turnover rate 59% 75% 48% 71% 83% 52%
</TABLE>
For footnote references, see "Notes to Financial Highlights" on page 71.
<TABLE>
<CAPTION>
INTERNATIONAL GROWTH FUND
(Unaudited) Year Ended October 31 Period from
Six Months Ended ------------------------------------------------ 3/1/94 to
April 30, 1999 1998 1997 1996 1995 10/31/94
-------------- --------- --------- --------- --------- ---------
Selected Per Share Data
for one share outstanding during the period
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period $ 10.34 $ 10.37 $ 10.40 $ 9.72 $ 9.79 $ 9.57
--------- --------- --------- --------- --------- ---------
Income from Investment Operations
Net investment income (loss) .01 .05 .02 (.02) .10 .02
Net realized and unrealized gain (loss) 1.90 .03 (.02) .71 (.09) .20
--------- --------- --------- --------- --------- ---------
Total investment operations 1.91 .08 -- .69 .01 .22
--------- --------- --------- --------- --------- ---------
Less Distributions
From net investment income (.01) -- -- (.01) (.08) --
From net realized gains (.91) (.11) (.03) -- -- --
--------- --------- --------- --------- --------- ---------
Total distributions (.92) (.11) (.03) (.01) (.08) --
--------- --------- --------- --------- --------- ---------
Net asset value, end of period $ 11.33 $ 10.34 $ 10.37 $ 10.40 $ 9.72 $ 9.79
========= ========= ========= ========= ========= =========
Total Return 19.85%1 .80%1 -0.01% 7.07% 0.13% 2.30%
Ratios and Supplemental Data
Net assets, end of period (000s omitted) $ 38,779 $ 41,623 $ 38,643 $ 35,273 $ 32,156 $ 29,725
Ratio of net expenses to average net assets2 1.50%* 1.50% 1.50% 1.50% 1.50% 1.50%*
Ratio of gross expenses to
average net assets2 1.71%* 1.65% -- -- -- --
Ratio of net investment income (loss)
to average net assets -.07%* .53% .34% -.20% 1.19% .35%*
Portfolio turnover rate 34% 106% 95% 74% 32% 30%
</TABLE>
For footnote references, see "Notes to Financial Highlights" on page 71.
The accompanying notes are an integral part of these financial statements.
64 FREMONT MUTUAL FUNDS
<PAGE>
FREMONT MUTUAL FUNDS, INC.
FINANCIAL HIGHLIGHTS - APRIL 30, 1999
<TABLE>
<CAPTION>
INTERNATIONAL SMALL CAP FUND
(Unaudited) Year Ended October 31 Period from
Six Months Ended ------------------------------------------------ 6/30/94 to
April 30, 1999 1998 1997 1996 1995 10/31/94
-------------- --------- --------- --------- --------- ---------
Selected Per Share Data
for one share outstanding during the period
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period $ 6.58 $ 8.23 $ 10.15 $ 9.00 $ 9.86 $ 10.00
--------- --------- --------- --------- --------- ---------
Income from Investment Operations
Net investment income (loss) .01 .04 .14 .14 .10 (.01)
Net realized and unrealized gain (loss) .78 (1.40) (1.58) 1.08 (.88) (.13)
--------- --------- --------- --------- --------- ---------
Total investment operations .79 (1.36) (1.44) 1.22 (.78) (.14)
--------- --------- --------- --------- --------- ---------
Less Distributions
From net investment income (.01) (.21) (.21) (.07) (.08) --
From net realized gains -- (.08) (.27) -- -- --
--------- --------- --------- --------- --------- ---------
Total distributions (.01) (.29) (.48) (.07) (.08) --
--------- --------- --------- --------- --------- ---------
Net asset value, end of period $ 7.36 $ 6.58 $ 8.23 $ 10.15 $ 9.00 $ 9.86
========= ========= ========= ========= ========= =========
Total Return 12.04%1 -16.76%1 -14.56% 13.69%1 -7.96%1 -1.40%
Ratios and Supplemental Data
Net assets, end of period (000s omitted) $ 8,628 $ 5,694 $ 8,534 $ 9,214 $ 4,245 $ 1,768
Ratio of net expenses to average net assets2,3 1.50%* 1.50% 1.50% 1.81% 2.06% 2.50%*
Ratio of gross expenses to average net assets2,3 2.67%* 2.55% 1.50% 2.50% 2.50% 2.50%*
Ratio of net investment income (loss)
to average net assets .25%* .91% 1.97% 1.61% 1.67% -0.28%*
Portfolio turnover rate 18% 148% 56% 74% 96% --
</TABLE>
For footnote references, see "Notes to Financial Highlights" on page 71.
<TABLE>
<CAPTION>
EMERGING MARKETS FUND
(Unaudited) Year Ended October 31 Period from
Six Months Ended ---------------------- 6/24/96 to
April 30, 1999 1998 1997 10/31/96
-------------- --------- --------- ---------
Selected Per Share Data
for one share outstanding during the period
<S> <C> <C> <C> <C>
Net asset value, beginning of period $ 5.89 $ 9.58 $ 9.62 $ 10.00
--------- --------- --------- ---------
Income from Investment Operations
Net investment income -- .09 .17 .10
Net realized and unrealized gain (loss) .93 (3.64) 1.03 (.41)
--------- --------- --------- ---------
Total investment operations .93 (3.55) 1.20 (.31)
--------- --------- --------- ---------
Less Distributions
From net investment income -- -- (.06) (.07)
From net realized gains -- (.14) (1.18) --
--------- --------- --------- ---------
Total distributions -- (.14) (1.24) (.07)
--------- --------- --------- ---------
Net asset value, end of period $ 6.82 $ 5.89 $ 9.58 $ 9.62
========= ========= ========= =========
Total Return1 15.79% -37.59% 12.55% -3.12%
Ratios and Supplemental Data
Net assets, end of period (000s omitted) $ 9,189 $ 8,742 $ 12,175 $ 3,772
Ratio of net expenses to average net assets2 1.50%* 1.50% .26% --
Ratio of gross expenses to average net assets2 2.98%* 2.34% 2.63% 4.95%*
Ratio of net investment income to
average net assets .45%* .99% 2.04% 3.32%*
Portfolio turnover rate 32% 135% 208% 7%
</TABLE>
For footnote references, see "Notes to Financial Highlights" on page 71.
The accompanying notes are an integral part of these financial statements.
FREMONT MUTUAL FUNDS 65
<PAGE>
FREMONT MUTUAL FUNDS, INC.
FINANCIAL HIGHLIGHTS - APRIL 30, 1999
<TABLE>
<CAPTION>
U.S. MICRO-CAP FUND
(Unaudited) Year Ended October 31 Period from
Six Months Ended ------------------------------------------------ 6/30/94 to
April 30, 1999 1998 1997 1996 1995 10/31/94
-------------- --------- --------- --------- --------- ---------
Selected Per Share Data
for one share outstanding during the period
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period $ 16.34 $ 22.69 $ 19.63 $ 14.34 $ 10.34 $ 10.00
--------- --------- --------- --------- --------- ---------
Income from Investment Operations
Net investment income (loss) (.12) (.25) (.10) (.04) (.05) .02
Net realized and unrealized gain (loss) 7.67 (4.86) 5.60 5.83 4.05 .34
--------- --------- --------- --------- --------- ---------
Total investment operations 7.55 (5.11) 5.50 5.79 4.00 .36
--------- --------- --------- --------- --------- ---------
Less Distributions
From net investment income -- -- -- -- -- (.02)
From net realized gains -- (1.24) (2.44) (.50) -- --
--------- --------- --------- --------- --------- ---------
Total distributions -- (1.24) (2.44) (.50) -- (.02)
--------- --------- --------- --------- --------- ---------
Net asset value, end of period $ 23.89 $ 16.34 $ 22.69 $ 19.63 $ 14.34 $ 10.34
========= ========= ========= ========= ========= =========
Total Return 46.21% -23.45% 28.80%1 41.46%1 38.68%1 3.60%
Ratios and Supplemental Data
Net assets, end of period (000s omitted) $ 177,491 $ 120,016 $ 171,507 $ 102,481 $ 7,792 $ 2,052
Ratio of net expenses to average net assets4 1.93%* 1.94% 1.88% 1.96% 2.04% 2.50%*
Ratio of gross expenses to average net assets4 1.93%* 1.94% 1.90% 2.22% 2.50% 2.50%*
Ratio of net investment income (loss)
to average net assets -1.19%* -1.22% -.67% -.51% -.67% .68%*
Portfolio turnover rate 103% 170% 125% 81% 144% 44%
</TABLE>
For footnote references, see "Notes to Financial Highlights" on page 71.
<TABLE>
<CAPTION>
U.S. SMALL CAP FUND
(Unaudited) Year Ended Period from
Six Months Ended October 31, 9/24/97 to
April 30, 1999 1998 10/31/97
-------------- --------- ---------
Selected Per Share Data
for one share outstanding during the period
<S> <C> <C> <C>
Net asset value, beginning of period $ 8.87 $ 9.57 $ 10.00
--------- --------- ---------
Income from Investment Operations
Net investment income (loss) (.04) (.04) .02
Net realized and unrealized gain (loss) 3.41 (.66) (.42)
--------- --------- ---------
Total investment operations 3.37 (.70) (.40)
--------- --------- ---------
Less Distributions
From net investment income -- --5 (.02)
From net realized gains -- --5 (.01)
--------- --------- ---------
Total distributions -- --5 (.03)
--------- --------- ---------
Net asset value, end of period $ 12.24 $ 8.87 $ 9.57
========= ========= =========
Total Return1 37.99% -7.29% -4.06%
Ratios and Supplemental Data
Net assets, end of period (000s omitted) $ 12,603 $ 7,367 $ 5,350
Ratio of net expenses to average net assets2 1.50%* 1.50% 1.50%*
Ratio of gross expenses to average net assets2 2.34%* 2.85% 3.32%*
Ratio of net investment income (loss)
to average net assets -.82%* -.52% 1.81%*
Portfolio turnover rate 105% 273% 8%
</TABLE>
For footnote references, see "Notes to Financial Highlights" on page 71.
The accompanying notes are an integral part of these financial statements.
66 FREMONT MUTUAL FUNDS
<PAGE>
FREMONT MUTUAL FUNDS, INC.
FINANCIAL HIGHLIGHTS - APRIL 30, 1999
<TABLE>
<CAPTION>
GROWTH FUND
(Unaudited) Year Ended October 31
Six Months Ended -------------------------------------------------------------
April 30, 1999 1998 1997 1996 1995 1994
-------------- --------- --------- --------- --------- ---------
Selected Per Share Data
for one share outstanding during the period
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period $ 15.56 $ 14.96 $ 15.02 $ 13.06 $ 10.46 $ 11.25
--------- --------- --------- --------- --------- ---------
Income from Investment Operations
Net investment income .21 .20 .20 .10 .13 .21
Net realized and unrealized gain (loss) 2.80 .87 3.43 2.65 2.74 (.02)
--------- --------- --------- --------- --------- ---------
Total investment operations 3.01 1.07 3.63 2.75 2.87 .19
--------- --------- --------- --------- --------- ---------
Less Distributions
From net investment income (.06) (.17) (.22) (.08) (.17) (.18)
From net realized gains (2.14) (.30) (3.47) (.71) (.10) (.80)
--------- --------- --------- --------- --------- ---------
Total distributions (2.20) (.47) (3.69) (.79) (.27) (.98)
--------- --------- --------- --------- --------- ---------
Net asset value, end of period $ 16.37 $ 15.56 $ 14.96 $ 15.02 $ 13.06 $ 10.46
========= ========= ========= ========= ========= =========
Total Return 21.33% 7.30% 29.26% 22.06% 28.12%1 1.72%1
Ratios and Supplemental Data
Net assets, end of period (000s omitted) $ 141,056 $ 159,375 $ 147,641 $ 78,624 $ 59,632 $ 27,244
Ratio of net expenses to average net assets6 .82%* .82% .85% .92% .97% .94%
Ratio of gross expenses to average net assets6 .82%* .82% .85% .92% 1.01% 1.08%
Ratio of net investment income
to average net assets 1.07%* 1.25% 1.44% .75% 1.02% 1.31%
Portfolio turnover rate 34% 111% 48% 129% 108% 55%
</TABLE>
For footnote references, see "Notes to Financial Highlights" on page 71.
REAL ESTATE SECURITIES FUND
(Unaudited) Period from
Six Months Ended 12/31/97 to
April 30, 1999 October 31, 1998
-------------- ----------------
Selected Per Share Data
for one share outstanding during the period
Net asset value, beginning of period $ 7.98 $ 10.00
--------- ---------
Income from Investment Operations
Net investment income (loss) .18 .19
Net realized and unrealized gain (loss) .26 (2.07)
--------- ---------
Total investment operations .44 (1.88)
--------- ---------
Less Distributions
From net investment income (.26) (.14)
From net realized gains -- --
--------- ---------
Total distributions (.26) (.14)
--------- ---------
Net asset value, end of period $ 8.16 $ 7.98
========= =========
Total Return1 5.73% -18.78%
Ratios and Supplemental Data
Net assets, end of period (000s omitted) $ 32,482 $ 33,482
Ratio of net expenses to average net assets2 1.50%* 1.09%*
Ratio of gross expenses to average net assets2 1.72%* 1.80%*
Ratio of net investment income (loss)
to average net assets 4.55%* 4.10%*
Portfolio turnover rate 100% 196%
For footnote references, see "Notes to Financial Highlights" on page 71.
The accompanying notes are an integral part of these financial statements.
FREMONT MUTUAL FUNDS 67
<PAGE>
FREMONT MUTUAL FUNDS, INC.
FINANCIAL HIGHLIGHTS - APRIL 30, 1999
<TABLE>
<CAPTION>
BOND FUND
(Unaudited) Year Ended October 31
Six Months Ended -------------------------------------------------------------
April 30, 1999 1998 1997 1996 1995 1994
-------------- --------- --------- --------- --------- ---------
Selected Per Share Data
for one share outstanding during the period
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period $ 10.44 $ 10.23 $ 9.99 $ 10.13 $ 9.29 $ 10.27
--------- --------- --------- --------- --------- ---------
Income from Investment Operations
Net investment income .30 .60 .67 .67 .65 .53
Net realized and unrealized gain (loss) (.22) .41 .25 .11 .83 (.98)
--------- --------- --------- --------- --------- ---------
Total investment operations .08 1.01 .92 .78 1.48 (.45)
--------- --------- --------- --------- --------- ---------
Less Distributions
From net investment income (.31) (.62) (.66) (.70) (.64) (.53)
From net realized gains (.18) (.18) (.02) (.22) -- --
--------- --------- --------- --------- --------- ---------
Total distributions (.49) (.80) (.68) (.92) (.64) (.53)
--------- --------- --------- --------- --------- ---------
Net asset value, end of period $ 10.03 $ 10.44 $ 10.23 $ 9.99 $ 10.13 $ 9.29
========= ========= ========= ========= ========= =========
Total Return1 .78% 10.31% 9.54% 8.18% 16.49% -4.42%
Ratios and Supplemental Data
Net assets, end of period (000s omitted) $ 225,693 $ 228,001 $ 90,302 $ 70,577 $ 86,343 $ 64,244
Ratio of net expenses to average net assets2,8 .56%* .60% .61% .68% .60% .66%
Ratio of gross expenses to average net assets2,8 .64%* .72% .76% .83% .75% 1.04%
Ratio of net investment income
to average net assets 5.87%* 5.92% 6.40% 6.82% 6.69% 5.76%
Portfolio turnover rate 138% 256% 191% 154% 21% 205%
</TABLE>
For footnote references, see "Notes to Financial Highlights" on page 71.
<TABLE>
<CAPTION>
MONEY MARKET FUND
(Unaudited) Year Ended October 31
Six Months Ended -------------------------------------------------------------
April 30, 1999 1998 1997 1996 1995 1994
-------------- --------- --------- --------- --------- ---------
Selected Per Share Data
for one share outstanding during the period
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
--------- --------- --------- --------- --------- ---------
Income from Investment Operations
Net investment income .02 .05 .05 .05 .06 .03
--------- --------- --------- --------- --------- ---------
Total investment operations .02 .05 .05 .05 .06 .03
--------- --------- --------- --------- --------- ---------
Less Distributions
From net investment income (.02) (.05) (.05) (.05) (.06) (.03)
--------- --------- --------- --------- --------- ---------
Total distributions (.02) (.05) (.05) (.05) (.06) (.03)
--------- --------- --------- --------- --------- ---------
Net asset value, end of period $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
========= ========= ========= ========= ========= =========
Total Return1 2.41% 5.45% 5.39% 5.34% 5.84% 3.49%
Ratios and Supplemental Data
Net assets, end of period (000s omitted) $ 728,856 $ 717,291 $ 433,152 $ 329,652 $ 299,312 $ 224,439
Ratio of net expenses to average net assets2 .32%* .29% .30% .31% .30% .46%
Ratio of gross expenses to average net assets2 .43%* .44% .45% .46% .45% .61%
Ratio of net investment income
to average net assets 4.80%* 5.33% 5.26% 5.22% 5.70% 4.02%
</TABLE>
For footnote references, see "Notes to Financial Highlights" on page 71.
The accompanying notes are an integral part of these financial statements.
68 FREMONT MUTUAL FUNDS
<PAGE>
FREMONT MUTUAL FUNDS, INC.
FINANCIAL HIGHLIGHTS - APRIL 30, 1999
<TABLE>
<CAPTION>
CALIFORNIA INTERMEDIATE TAX-FREE FUND
(Unaudited) Year Ended October 31, 1999
Six Months Ended -------------------------------------------------------------
April 30, 1999 1998 1997 1996 1995 1994
-------------- --------- --------- --------- --------- ---------
Selected Per Share Data
for one share outstanding during the period
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period $ 11.25 $ 10.99 $ 10.80 $ 10.86 $ 10.13 $ 11.10
--------- --------- --------- --------- --------- ---------
Income from Investment Operations
Net investment income .25 .51 .51 .52 .53 .53
Net realized and unrealized gain (loss) (.10) .26 .20 (.03) .73 (.97)
--------- --------- --------- --------- --------- ---------
Total investment operations .15 .77 .71 .49 1.26 (.44)
--------- --------- --------- --------- --------- ---------
Less Distributions
From net investment income (.25) (.51) (.51) (.52) (.53) (.53)
From net realized gains -- -- (.01) (.03) -- --
--------- --------- --------- --------- --------- ---------
Total distributions (.25) (.51) (.52) (.55) (.53) (.53)
--------- --------- --------- --------- --------- ---------
Net asset value, end of period $ 11.15 $ 11.25 $ 10.99 $ 10.80 $ 10.86 $ 10.13
========= ========= ========= ========= ========= =========
Total Return1 1.36% 7.16% 6.75% 4.63% 12.77% -3.94%
Ratios and Supplemental Data
Net assets, end of period (000s omitted) $ 68,554 $ 64,011 $ 64,309 $ 51,156 $ 50,313 $ 58,305
Ratio of net expenses to average net assets2 .47%* .47% .49% .51% .50% .51%
Ratio of gross expenses to average net assets2 .65%* .67% .69% .73% .72% .71%
Ratio of net investment income
to average net assets 4.48%* 4.55% 4.72% 4.86% 5.08% 4.94%
Portfolio turnover rate 2% 9% 6% 6% 18% 21%
</TABLE>
For footnote references, see "Notes to Financial Highlights" below.
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL HIGHLIGHTS
APRIL 30, 1999
The following notes are being used as referenced items in the Financial
Highlights of the Funds presented on pages 64 through 69:
1 Total return would have been lower had the advisor not waived and/or
reimbursed expenses.
2 See Note 2 of "Notes to Financial Statements."
3 Management fees were voluntarily waived from February 1, 1995 to October
31, 1996.
4 Management fees were voluntarily waived from February 1, 1995 to January
8, 1997.
5 Distributions are less than $0.01 per share.
6 Administrative fees were voluntarily waived from August 14, 1992 to March
31, 1995.
7 Operating expenses were voluntarily limited to 0.50% prior to July 1,
1998.
8 Administrative fees were voluntarily waived in its entirety prior to March
1, 1998.
* Annualized
The accompanying notes are an integral part of these financial statements.
FREMONT MUTUAL FUNDS 69
<PAGE>
FREMONT MUTUAL FUNDS, INC.
NOTES TO FINANCIAL STATEMENTS - APRIL 30, 1999 (UNAUDITED)
1. SIGNIFICANT ACCOUNTING POLICIES
Fremont Mutual Funds, Inc. (the "Investment Company") is an open-end
investment company authorized to issue ten billion shares of $.0001 par value
capital stock. These shares are currently offered in twelve series, eleven of
which are covered by this report:
o the GLOBAL FUND
o the INTERNATIONAL GROWTH FUND
o the INTERNATIONAL SMALL CAP FUND
o the EMERGING MARKETS FUND
o the U.S. MICRO-CAP FUND
o the U.S. SMALL CAP FUND
o the GROWTH FUND
o the REAL ESTATE SECURITIES FUND
o the BOND FUND
o the MONEY MARKET FUND
o the 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 in conformity with
generally accepted accounting principles for investment companies and are
summarized below.
A. Security Valuation
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 closing values of such securities on their respective
exchanges or the most recent price 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,
the International Small Cap Fund and the Emerging Markets 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, as amended. The Investment Company
accounts for the assets of each Fund separately and allocates general
expenses of the Investment Company 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. Distributions to shareholders are recorded on the
ex-dividend date.
Dividends received by the Real Estate Securities Fund from its securities may
be a return of capital. Such distributions reduce the cost basis of the
securities, and any distributions in excess of the cost basis are recognized
as realized gains.
Distributions to shareholders made by the California Intermediate Tax-Free
Fund during the six months ended April 30, 1999, excluding capital gains
distributions, were of tax-exempt income.
D. 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
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
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 differences will be reclassified to paid in capital. Temporary
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.
70 FREMONT MUTUAL FUNDS
<PAGE>
FREMONT MUTUAL FUNDS, INC.
NOTES TO FINANCIAL STATEMENTS - APRIL 30, 1999 (UNAUDITED)
For Federal income tax purposes, certain funds have capital loss carryovers
at October 31, 1998. 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, 1998 which expire in 2006.
Fund Amount
---- ------
International Small Cap Fund $ 2,125,957
Emerging Markets Fund 5,018,887
U.S. Micro-Cap Fund 5,239,292
U.S. Small Cap Fund 765,089
Real Estate Securities Fund 2,868,690
E. Accounting Estimates
The preparation of financial statements in accordance with generally accepted
accounting principles requires management to make estimates and assumptions
that affect the reported amounts of assets and liabilities at the date of the
financial statements and the amounts of income and expense during the
reporting period. Actual results could differ from those estimates.
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, the Emerging Markets 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.
Certain transactions which result in realized currency gain (loss) are
reported on the Statements of Operations as Net 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 Net 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.
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, the International Growth 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. When required, the Funds will segregate assets in an
amount sufficient to cover obligations under the hedge 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 if appreciated or
as a Liability if depreciated) and not the actual underlying values.
FREMONT MUTUAL FUNDS 71
<PAGE>
FREMONT MUTUAL FUNDS, INC.
NOTES TO FINANCIAL STATEMENTS - APRIL 30, 1999 (UNAUDITED)
At April 30, 1999, the underlying values for open foreign currency contracts
were as follows:
<TABLE>
<CAPTION>
Net Unrealized
To Receive Foreign Settlement Initial Appreciation
(To Deliver) Currency Date Value Current Value (Depreciation)
------------ -------- ---- ----- ------------- --------------
<S> <C> <C> <C> <C> <C> <C>
Global Fund (4,700,000) Australian Dollar 05/12/99 $ (3,037,845) $ (3,108,956) $ (71,111)
310,000 Australian Dollar 05/28/99 202,534 205,062 2,528
250,000 Australian Dollar 05/28/99 62,018 165,373 3,355
220,000 Australian Dollar 05/28/99 142,360 145,528 3,168
(12,200,000) British Pound 05/12/99 (19,837,200) (19,637,120) 200,080
2,160,400 British Pound 06/30/99 3,485,849 3,475,868 (9,981)
250,800 British Pound 06/30/99 403,705 403,512 (193)
(2,000,000) British Pound 07/13/99 (3,212,740) (3,217,600) (4,860)
9,000,000 Canadian Dollar 05/12/99 5,957,503 6,174,110 216,607
9,000,000 Canadian Dollar 05/12/99 6,460,077 6,654,318 194,241
(18,700,000) Canadian Dollar 05/12/99 (12,515,477) (12,828,428) (312,951)
1,659,500 Canadian Dollar 06/30/99 1,117,057 1,138,750 21,693
(2,600) Danish Krone 05/04/99 (370) (370) --
(380) Euro 05/03/99 (403) (402) 1
(926,470) Euro 05/04/99 (979,279) (979,881) (602)
(926,470) Euro 05/04/99 (979,279) (979,881) (602)
3,600,000 Euro 05/12/99 3,870,000 3,812,400 (57,600)
(58,000,000) Euro 05/12/99 (63,708,070) (61,422,000) 2,286,070
(4,700,000) Euro 06/04/99 (5,001,458) (4,984,820) 16,638
7,314,600 Euro 06/30/99 7,869,047 7,771,031 (98,016)
14,000 Euro 07/09/99 14,912 14,854 (58)
926,500 Euro 07/13/99 983,772 983,758 (14)
926,500 Euro 07/15/99 983,897 983,943 46
(700,000,000) Japanese Yen 05/12/99 (5,969,742) (5,867,561) 102,181
(700,000,000) Japanese Yen 05/12/99 (5,790,053) (5,867,561) (77,508)
(1,000,000,000) Japanese Yen 05/12/99 (8,528,203) (8,382,230) 145,973
(1,000,000,000) Japanese Yen 05/12/99 (8,271,504) (8,382,230) (110,726)
55,287,700 Japanese Yen 06/30/99 466,287 466,484 197
(284,256,300) Japanese Yen 06/30/99 (2,428,089) (2,398,383) 29,706
(17,300,000) New Zealand Dollar 05/12/99 (9,272,800) (9,673,987) (401,187)
(2,083,000) New Zealand Dollar 06/11/99 (1,144,296) (1,165,230) (20,934)
(1,267,000) Norwegian Krone 06/04/99 (162,197) (162,176) 21
(26,400) Swedish Krona 05/04/99 (3,144) (3,131) 13
(44,600,000) Swedish Krona 05/12/99 (5,681,529) (5,295,969) 385,560
(310,000) Swiss Franc 05/28/99 (206,999) (204,028) 2,971
(220,000) Swiss Franc 05/28/99 (146,238) (144,794) 1,444
(190,000) Swiss Franc 05/28/99 (126,087) (125,049) 1,038
323,400 Swiss Franc 06/30/99 213,521 213,620 99
(6,680,300) Swiss Franc 06/30/99 (4,495,794) (4,412,643) 83,151
-----------
$ 2,530,438
===========
Int. Growth Fund 337,889 Australian Dollar 05/03/99 $ 220,979 $ 223,463 $ 2,484
340,055 Australian Dollar 07/30/99 211,000 225,007 14,007
(333,833) Australian Dollar 07/30/99 (211,216) (220,890) (9,674)
(7,820) British Pound 05/04/99 (12,647) (12,577) 70
(7,708) British Pound 05/05/99 (12,431) (12,397) 34
46,151 British Pound 05/06/99 74,427 74,223 (204)
16,553 British Pound 05/07/99 26,659 26,621 (38)
11,916 British Pound 05/10/99 19,191 19,164 (27)
(130,987) British Pound 07/30/99 (211,000) (139,946) 71,054
130,987 British Pound 07/30/99 211,216 139,946 (71,270)
</TABLE>
72 FREMONT MUTUAL FUNDS
<PAGE>
FREMONT MUTUAL FUNDS, INC.
NOTES TO FINANCIAL STATEMENTS - APRIL 30, 1999 (UNAUDITED)
<TABLE>
<CAPTION>
Net Unrealized
To Receive Foreign Settlement Initial Appreciation
(To Deliver) Currency Date Value Current Value (Depreciation)
------------ -------- ---- ----- ------------- --------------
<S> <C> <C> <C> <C> <C> <C>
Int. Growth Fund (24,241) British Pound 08/04/99 $ (38,687) $ (25,899) $ 12,788
(cont.) 530,855 Canadian Dollar 05/03/99 361,741 363,574 1,833
203,108 Euro 05/03/99 215,416 214,817 (599)
93,383 Euro 05/05/99 99,303 98,766 (537)
(10,517) Euro 05/05/99 (11,154) (11,123) 31
132,936 Euro 05/06/99 150,384 140,527 (9,857)
225,245 Euro 05/10/99 255,000 238,174 (16,826)
(47,548) Euro 07/22/99 (51,000) (50,515) 485
47,548 Euro 07/22/99 50,765 50,515 (250)
36,577 Euro 08/04/99 38,687 38,895 208
(18,877,000) Japanese Yen 05/06/99 (166,802) (158,430) 8,372
18,877,000 Japanese Yen 05/06/99 171,672 158,431 (13,241)
(17,168,700) Japanese Yen 05/06/99 (150,384) 144,093) 6,291
(2,595,760) Japanese Yen 05/07/99 (21,768) (21,753) 15
24,255,910 Japanese Yen 05/07/99 203,412 203,276 (136)
(2,557,261) Japanese Yen 05/10/99 (21,381) (21,431) (50)
(38,138,290) Japanese Yen 05/17/99 (337,000) (320,248) 16,752
(44,842,460) Japanese Yen 06/04/99 (338,000) (377,462) (39,462)
44,842,460 Japanese Yen 06/04/99 379,834 377,462 (2,372)
(36,929,750) Japanese Yen 08/02/99 (325,000) (313,283) 11,717
(24,259,170) Japanese Yen 08/04/99 (221,000) (205,848) 15,152
(42,164,800) Japanese Yen 08/27/99 (361,000) (358,910) 2,090
(39,936,480) Japanese Yen 10/13/99 (348,000) (342,156) 5,844
37,712 Singapore Dollar 05/04/99 22,209 22,256 47
180,723 Swedish Krona 05/03/99 21,779 21,671 (108)
-----------
$ 4,623
===========
Bond Fund 1,706,000 New Zealand Dollar 05/14/99 $ 914,288 $ 954,012 $ 39,724
(403,000) New Zealand Dollar 05/14/99 (213,658) (225,362) (11,704)
(1,208,000) New Zealand Dollar 05/21/99 (640,470) (675,598) (35,128)
(793,000) New Zealand Dollar 06/18/99 (433,640) (443,612) (9,972)
-----------
$ (17,080)
===========
</TABLE>
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 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 if appreciated or as a Liability if
depreciated) and not the actual underlying values. The Funds use futures
contracts to seek appreciation or to reduce principal volatility.
FREMONT MUTUAL FUNDS 73
<PAGE>
FREMONT MUTUAL FUNDS, INC.
NOTES TO FINANCIAL STATEMENTS - APRIL 30, 1999 (UNAUDITED)
At April 30, 1999, the open futures contracts were as follows:
Net Unrealized
Contracts Expiration Appreciation
To Buy Date (Depreciation)
------ ---- --------------
Global Fund
10-yr. U.S. Treasury Note 26 Jun '99 $ (369,625)
30-yr. U.S. Treasury Bond 22 Jun '99 (25,438)
CAC 40 10 Euro Index Future 41 Jun '99 60,295
Canadian 10-yr Bond Future 3 Jun '99 (2,493)
DAX Index Future 33 Jun '99 198,944
Euro Bond Future 30 Jun '99 (1,174)
Euro Notional 10-yr. Bond Future 14 Jun '99 (963)
Japanese 10-yr. Bond Future (SIMEX) 1 Jun '99 5,571
Long Gilt Future 10 Jun '99 (9,516)
New FTSE 100 Index Future 20 Jun '99 33,490
Nikkei 300 Index Future (Osaka) 98 Jun '99 (23,982)
S&P 500 Index 240 Jun '99 1,113,380
TOPIX Index Future 22 Jun '99 (20,902)
Toronto 35 Index Future 7 Jun '99 (14,180)
-----------
Jun '99 $ 943,407
===========
Growth Fund
S&P 500 Index 67 Jun '99 378,180
-----------
$ 378,180
===========
Bond Fund
10-yr U.S. Treasury Note 148 Jun '99 (10,016)
30-yr U.S. Treasury Bond 10 Jun '99 (15,313)
90-Day Euro Dollar 16 Dec '99 (15,988)
90-Day Euro Dollar 16 Mar '00 (20,625)
90-Day Euro Dollar 16 Jun '00 (21,738)
90-Day Euro Dollar 19 Sep '00 (21,175)
90-Day Euro Dollar 3 Mar '01 526
90-Day Euro Dollar 3 Jun '01 339
90-Day Euro Dollar 10 Sep '01 6
Municipal Bond 100 Jun '99 (12,500)
-----------
$ (116,484)
===========
At April 30, 1999, $4,565,000, $1,540,000 and $920,000 par value of U.S.
Treasury Bills for the Global Fund, Growth Fund and Bond Fund, respectively,
were held by brokers to satisfy the initial margin requirements related to
these contracts.
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 331 1/43% 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 Rule 2a-7 of the 1940 Act. At April
30, 1999, the Funds had no loans outstanding.
74 FREMONT MUTUAL FUNDS
<PAGE>
FREMONT MUTUAL FUNDS, INC.
NOTES TO FINANCIAL STATEMENTS - APRIL 30, 1999 (UNAUDITED)
2. TRANSACTIONS WITH AFFILIATES AND RELATED PARTIES
Investment Advisor
The Funds each have entered into an investment management and administrative
services agreement with Fremont Investment Advisors, Inc. (the "Advisor"), a
majority-owned subsidiary of Fremont Investors, Inc. Under this agreement,
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 0.60% on all net assets 0.15% on all net assets
International Growth Fund* 1.00% on all net assets 0.15% on all net assets
International Small Cap Fund* 1.25% on all net assets 0.15% on all net assets
Emerging Markets Fund* 1.00% on all net assets 0.15% on all net assets
U.S. Micro-Cap Fund 2.50% on first $30 million --
2.00% on next $70 million
1.50% on balance over $100 million
U.S. Small Cap Fund* 1.00% on all net assets 0.15% on all net assets
Growth Fund 0.50% on all net assets 0.15% on all net assets
Real Estate Securities Fund* 1.00% on all net assets --
Bond Fund* 0.40% on all net assets 0.15% on all net assets
Money Market Fund* 0.30% on first $50 million 0.15% on all net assets
0.20% on balance over $50 million
California Intermediate Tax-Free Fund* 0.40% on first $25 million 0.15% on all net assets
0.35% on next $25 million
0.30% on next $50 million
0.25% on next $50 million
0.20% on balance over $150 million
</TABLE>
*The Advisor has voluntarily waived and/or reimbursed some of its fees for
these Funds. The waivers are voluntary and may be changed in the future. For
the Bond Fund and the Money Market Fund, all fees waived in the past cannot
be recouped in the future.
Investors Fiduciary Trust Company ("IFTC") serves as custodian and investment
accounting agent for the Fremont Funds. All fees charged by IFTC are paid by
the Funds, subject to the limitations listed above. Fees for custody services
are subject to reductions by credits earned on the cash balances of the Funds
held by IFTC as custodian.
Ratios of expenses have been disclosed both before and after the impact of
these various waivers, reimbursements and credits under each Fund's Financial
Highlights table.
For the International Growth Fund, the International Small Cap Fund, the
Emerging Markets Fund, the U.S. Small Cap Fund, the Real Estate Securities
Fund and the California Intermediate Tax-Free Fund, to the extent management
fees are waived and/or other expenses are reimbursed by the Advisor, a Fund
may reimburse the Advisor for any reductions in the Fund's expenses during
the three years following that reduction if such reimbursement is requested
by the Advisor, if such reimbursement can be achieved within the foregoing
expense limit, and if the Board of Directors approves the reimbursement at
the time of the request as not inconsistent with the best interests of the
Fund.
For the International Growth Fund, the International Small Cap Fund, the
Emerging Markets Fund, the U.S. Small Cap Fund and the Real Estate Securities
Fund the Advisor has voluntarily limited the total operating expenses to
1.50% of average net assets. For the six months ended April 30, 1999, the
Advisor reimbursed expenses of $43,951, $43,326, $60,431, $41,176 and
$34,668, respectively, for the International Growth Fund, the International
Small Cap Fund, the Emerging Markets Fund, the U.S. Small Cap Fund and the
Real Estate Securities Fund. The Advisor has not recouped prior period
expense waivers and reimbursements of $18,688, $14,206, $95,533 and $135,255,
respectively, from the International Growth Fund, the International Small Cap
Fund, the U.S. Small Cap Fund and the Real Estate Securities Fund as of April
30, 1999.
For the Bond Fund, the Advisor has voluntarily waived 0.05% out of the 0.15%
administrative free beginning on March 1, 1999. Prior to March 1, 1999, the
Advisor voluntarily waived 0.10% out of the 0.15% administrative fee. For the
six months ended April 30, 1999, the Advisor waived administrative fees of
$89,237 for the Bond Fund.
FREMONT MUTUAL FUNDS 75
<PAGE>
FREMONT MUTUAL FUNDS, INC.
NOTES TO FINANCIAL STATEMENTS - APRIL 30, 1999 (UNAUDITED)
For the Money Market Fund, the Advisor voluntarily waived the entire
administrative fee until February 28, 1999. Beginning on March 1, 1999, the
administrative fee waiver was removed. For the four months ended February 28,
1999, the Advisor waived administrative fees of $357,340 for the Money Market
Fund.
For the California Intermediate Tax-Free Fund, the Advisor has voluntarily
limited the total operating expenses to 0.49% of average net assets beginning
March 1, 1999. Prior to March 1, 1999, the Advisor voluntarily reduced the
advisory and administrative fees to 0.30% and 0.005%, respectively, of
average net assets. For the six months ended April 30, 1999, the Advisor
waived advisory and administrative fees of $12,329 and $33,984, respectively,
for the California Intermediate Tax-Free Fund.
Under the terms of the Advisory agreement, the Advisor receives a single
management fee from the U.S. Micro-Cap Fund, and is obligated to pay all
expenses of the Fund 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 the
Fund.
Pursuant to Rule 12b-1 under the Investment Company Act of 1940, the
International Growth Fund, the Emerging Markets Fund, the U.S. Small Cap Fund
and the Real Estate Securities Fund have adopted a plan of distribution under
which the Funds may directly compensate the Advisor for certain
distribution-related expenses. The annual limitation for compensation to the
Advisor pursuant to the plan of distribution is 0.25% of a Fund's average
daily net assets. All payments are reviewed by the Board of Directors.
Each Fund is also required to comply with the expense limitations set forth
in the laws, regulations, and administrative interpretations of the states in
which it is registered. For the six months ended April 30, 1999, no
reimbursements were required or made to any Fund by the Advisor to comply
with these limitations.
Affiliated Company Transactions
Investments in portfolio companies, 5% or more of whose outstanding voting
securities are held by a Fund, are defined in the Investment Act of 1940 as
affiliated companies. The U.S. Micro-Cap Fund had investments in such
affiliated companies. A summary of transactions for each issuer who is an
affiliate during the six months ended April 30, 1999, follows:
<TABLE>
<CAPTION>
Share Aggregate Aggregate Net Share
Balance Purchase Sales Realized Balance Value
Issuer 10/31/98 Cost Cost Gain/(Loss) Income 4/30/99 4/30/99
------- ---------- ----------- ----------- -------- ------- -----------
<S> <C> <C> <C> <C> <C> <C> <C>
MDSI Mobile Data Solutions, Inc. 337,700 $ 148,846 $ 1,170,273 $ (295,068) $ -- 272,800 $ 4,774,000
Northern Technologies International Corp. 171,600 $ 159,861 $ -- $ -- $ 25,740 197,400 $ 1,184,400
Richey Electronics, Inc. 206,200 $ -- $ 2,165,100 $ 164,813 $ -- -- $ --
V-One Corp. 561,400 $ -- $ 1,246,163 $(2,369,232) $ -- -- $ --
----------------------------------------------- -----------
$ 308,707 $ 4,581,536 $(2,499,487) $ 25,740 $ 5,958,400
=============================================== ===========
</TABLE>
Other Related Parties
At April 30, 1999, Fremont Investors, Inc., and its affiliated companies
including their employee retirement plans, its principal shareholder and
members of his family, including trusts, owned directly or indirectly the
following approximate percentages of the various Funds:
% of Shares
Outstanding
-----------
Global Fund 62%
International Growth Fund 84%
International Small Cap Fund 14%
Emerging Markets Fund 55%
U.S. Small Cap Fund 53%
Growth Fund 30%
Real Estate Securities Fund 1%
Bond Fund 70%
Money Market Fund 84%
California Intermediate Tax-Free Fund 70%
Certain officers and/or directors of the Funds are also officers and/or
directors of the Advisor and/or Fremont Investors, Inc. None of the officers
and/or directors so affiliated receive compensation for services as officers
and/or directors of the Funds.
76 FREMONT MUTUAL FUNDS
<PAGE>
FREMONT MUTUAL FUNDS, INC.
NOTES TO FINANCIAL STATEMENTS - APRIL 30, 1999 (UNAUDITED)
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 six months ended April 30, 1999 were as follows:
<TABLE>
<CAPTION>
Purchases Proceeds
--------- --------
Long-term securities excluding U.S. Government securities:
<S> <C> <C>
Global Fund $ 297,280,807 $ 315,822,955
International Growth Fund 13,713,030 23,603,280
International Small Cap Fund 3,625,929 1,263,122
Emerging Markets Fund 3,096,114 2,317,429
U.S. Micro-Cap Fund 130,914,699 129,930,238
U.S. Small Cap Fund 11,987,459 9,381,562
Growth Fund 43,561,270 86,162,672
Real Estate Securities Fund 29,464,076 30,766,530
Bond Fund 85,858,324 28,620,188
California Intermediate Tax-Free Fund 6,024,298 991,170
Long-term U.S. Government securities:
Global Fund $ 27,912,583 $ 26,795,918
Bond Fund 349,482,970 302,400,833
</TABLE>
Transactions in written put and call options for the six months ended April
30, 1999 for the Bond Fund were as follows:
<TABLE>
<CAPTION>
Amount of Premiums Number of Contracts
------------------ -------------------
<S> <C> <C>
Options outstanding at October 31, 1998 $ -- --
Options sold 237,245 2,547
Options cancelled in closing purchase transactions -- --
Options expired prior to exercise (27,876) (113)
Options exercised -- --
---------- -----
Options outstanding at April 30, 1999 $ 209,369 2,434
========== =====
</TABLE>
The following written options were outstanding at April 30, 1999:
<TABLE>
<CAPTION>
Number of Exercise Expiration
Name of Issuer Contracts Price Date Value
-------------- --------- ----- ---- -----
<S> <C> <C> <C> <C> <C>
Call Options: CBOT June 99 30-year U.S. Treasury Bond Futures 31 126.00 05/22/99 $ 969
CBOT June 99 30-year U.S. Treasury Bond Futures 46 128.00 05/22/99 719
CBOT June 99 30-year U.S. Treasury Bond Futures 42 130.00 05/22/99 656
OTC U.S.Treasury Note, 4.750%, 02/15/04 1,100 99.81 08/20/99 33,220
Put Options: CBOT June 99 30-year U.S. Treasury Bond Futures 73 116.00 05/22/99 $7,984
CBOT June 99 30-year U.S. Treasury Bond Futures 42 118.00 05/22/99 11,813
OTC U.S.Treasury Note, 4.750%, 02/15/04 1,100 97.05 08/20/99 55,880
</TABLE>
CBOT - Chicago Board of Trade
OTC - Over the Counter
The Bond Fund received premiums of $ 209,369 on these contracts and has an
unrealized gain of $98,128. The total notional value underlying these
contracts is $45,400,000.
FREMONT MUTUAL FUNDS 77
<PAGE>
FREMONT MUTUAL FUNDS, INC.
NOTES TO FINANCIAL STATEMENTS - APRIL 30, 1999 (UNAUDITED)
5. PORTFOLIO CONCENTRATIONS
There are certain investment concentrations of risk which may subject each
Fund more significantly to economic changes occurring in certain segments,
industries or countries.
6. UNREALIZED APPRECIATION (DEPRECIATION) - TAX BASIS
At April 30, 1999, 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 $ 635,517,186 $ 61,715,329 $ (21,934,255) $ 39,781,074
International Growth Fund 34,549,913 6,578,220 (1,219,847) 5,358,373
International Small Cap Fund 8,697,165 1,435,102 (1,556,595) (121,493)
Emerging Markets Fund 9,599,598 1,655,316 (1,670,184) (14,868)
U.S. Micro-Cap Fund 166,504,001 27,367,219 (13,248,415) 14,118,804
U.S. Small Cap Fund 11,493,009 2,338,882 (919,766) 1,419,116
Growth Fund 114,774,271 29,089,401 (2,708,625) 26,380,776
Real Estate Securities Fund 35,243,623 1,258,781 (2,989,661) (1,730,880)
Bond Fund 293,318,898 2,656,487 (1,963,614) 692,873
Money Market Fund 732,187,809 -- -- --
California Intermediate Tax-Free Fund 64,167,337 3,746,388 (39,037) 3,707,351
</TABLE>
7. LINE OF CREDIT
The Investment Company has a Line of Credit Arrangement ("LOC") with State
Street Bank and Trust Company, to be used for extraordinary or emergency
purposes, primarily to cover redemption payments. Each Fund's borrowings
cannot exceed 20% of each Fund's net assets. Combined borrowings of all Funds
cannot exceed the $75 million limit on the total line of credit. Each Fund is
subject to the annual fees and interest on the unpaid balance based on
prevailing market rates as defined in the LOC. At April 30, 1999, there were
no such borrowings outstanding.
8. SIGNIFICANT EVENTS
The Fremont Select Fund ceased operation effective March 31, 1999. The
Fremont Select Fund was reorganized and merged all of its assets into the
Fremont Global Fund. This merger was accomplished by a tax-free exchange of
300,356 shares of the Fremont Global Fund for investments with a market value
and cost of $4,058,325 and $4,151,946, respectively, and other assets of
$206,329.
78 FREMONT MUTUAL FUNDS
<PAGE>
This page left blank intentionally.
FREMONT MUTUAL FUNDS 79
<PAGE>
This page left blank intentionally.
80 FREMONT MUTUAL FUNDS
<PAGE>
FREMONT
FUNDS [LOGO]
50 Beale Street, Suite 100
San Francisco, CA 94105
www.fremontfunds.com
[LOGO]
Distributed by First Fund Distributors, Inc., San Francisco, CA 94105
BR008-9906
