FREMONT [LOGO]
FUNDS
FREMONT MUTUAL FUNDS, INC.
SEMI-ANNUAL REPORT
April 30, 2000
<PAGE>
A MESSAGE FROM MICHAEL H. KOSICH, PRESIDENT OF FREMONT MUTUAL FUNDS, INC.
[PHOTO]
Mike Kosich
Dear Fellow Shareholder,
Stock market volatility has become a fact of life. Money flows into and out of
equities at the speed of light depending on the latest economic data (often
substantially revised or contradicted by new data released shortly thereafter),
the most recent pronouncements from Wall Street gurus (who are generally wrong
as often as right), and the latest earnings reports (if earnings are a penny on
either side of expectations, stocks can gain or lose 20% or more in a day).
Volatility feeds on itself, as is evidenced by the enormous intra-day price
swings we have seen recently.
Investors, (who we define as people with the good sense to understand that a
patient, consistent, long term oriented investment strategy is the best way to
achieve their individual financial goals) see market volatility for what it
really is--static or "white noise" that should be ignored. I am not suggesting
investors play a pat hand. In fact, periodically everyone should rebalance their
portfolio and make reasoned judgments on which asset class or investment style
offers the best intermediate term opportunity. However, they should avoid the
temptation of trading stocks or mutual funds based on short term performance
trends.
This leads me to a sensitive issue that most folks in my shoes are reluctant to
talk about-- mutual fund cash flows. Sharp fluctuations in cash flows--money
pouring in and out of a fund based on short term performance--is a portfolio
manager's worst nightmare. It pressures them to buy stocks when they are most
expensive and forces them to sell stocks when they are more attractively valued.
This is the exact reverse of what every portfolio manager is trying to
accomplish--buying cheap and selling dear.
We put no restrictions on buying or selling our funds. No front end loads or
back-end lockups of any description. After all, this is America, Land of the
Free and Home of the Brave. However, we try to discourage all our fund
shareholders from acting like traders--moving in and out of funds based on the
most recent quarterly results. The market smiles on different investment styles
and capitalization sectors at different times. Piling into funds with the best
recent performance and abandoning funds with less impressive recent results
often translates into buying dear and selling cheap--the antithesis of smart
long term investing.
Sincerely,
/s/ Michael H. Kosich
Michael H. Kosich
President
<PAGE>
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TABLE OF CONTENTS
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FUND PROFILES AND LETTERS TO SHAREHOLDERS
Fremont Global Fund ...................................................... 2
Fremont International Growth Fund ........................................ 4
Fremont Emerging Markets Fund ............................................ 6
Fremont U.S. Micro-Cap Fund .............................................. 8
Fremont U.S. Small Cap Fund .............................................. 10
Fremont Growth Fund ...................................................... 12
Fremont Real Estate Securities Fund ...................................... 14
Fremont Bond Fund ........................................................ 16
Fremont Money Market Fund ................................................ 18
Fremont California Intermediate Tax-Free Fund ............................ 20
STATEMENTS OF INVESTMENTS IN SECURITIES AND NET ASSETS
Fremont Global Fund ...................................................... 22
Fremont International Growth Fund ........................................ 34
Fremont Emerging Markets Fund ............................................ 37
Fremont U.S. Micro-Cap Fund .............................................. 38
Fremont U.S. Small Cap Fund .............................................. 40
Fremont Growth Fund ...................................................... 41
Fremont Real Estate Securities Fund ...................................... 43
Fremont Bond Fund ........................................................ 44
Fremont Money Market Fund ................................................ 47
Fremont California Intermediate Tax-Free Fund ............................ 49
Notes to Statements of Investments in Securities and Net Assets,
Portfolio Abbreviations & Currency Abbreviations ........................ 51
Country Diversification .................................................. 52
COMBINED FINANCIAL STATEMENTS
Statements of Assets and Liabilities ..................................... 54
Statements of Operations ................................................. 58
Statements of Changes in Net Assets ...................................... 62
FINANCIAL HIGHLIGHTS ..................................................... 66
NOTES TO FINANCIAL STATEMENTS ............................................ 72
<PAGE>
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FREMONT GLOBAL FUND
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The Fremont Asset Allocation
Committee, Portfolio Managers
for Fremont Global Fund
[PHOTOS]
Dave Redo, Bob Haddick, Sandie Kinchen,
Al Kirschbaum, Pete Landini and 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
advantageous 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, 2000, Fremont Global Fund returned
12.60% compared to the Lipper Global Flexible Fund Average's 9.87% advance. We
are pleased to have achieved solid gains during a period of heightened financial
market volatility. We view these results as testament to our diversified, risk
averse investment strategy.
In the first half of fiscal 2000, our decision to modestly underweight U.S.
stocks and overweight European/UK equities worked to our advantage, as most
European stock markets materially outperformed the S&P 500. The UK lagged
Continental Europe during this six-month period, but managed to keep pace with
the S&P 500.
Our U.S. equities positions contributed to returns during this reporting
period. The Fund's small and micro-cap stock holdings posted exceptional gains
from November through February. When they stumbled in the March/April
correction, our larger cap growth stock positions helped cushion the fall. Once
again, we reaped the benefit of diversification within the different
capitalization sectors of the domestic equities market.
We remain underweighted in U.S. stocks (36% of assets versus a neutral
weighting of 45%) and overweighted in international equities (28% compared to
neutral weighting of 20%). European/UK equities comprise slightly more than 50%
of our international equities allocation. Fixed income investments represent 28%
of total assets, versus a neutral weighting of 33%. Once again, we are favoring
international securities, which comprise approximately two-thirds of our total
commitment to bonds. The remaining 8% is in cash.
Why the bias to international equities? The Federal Reserve has made it
clear it will continue to raise rates until the economy slows. With recent
statistical evidence of wage and consumer price inflation, we believe the Fed
may be even more aggressive in the coming months. We think higher interest rates
coupled with still high equities valuations will prove problematic for U.S.
stocks over the next several months. As we write, European central bankers are
poised to increase short term interest rates to restrain economic growth and
head off any increase in inflation. However, we believe interest rate increases
will be relatively modest and have less of an impact on more reasonably valued
equities.
Around 12% of the Fund's international equities assets are in developed
Asia, with approximately 8% in Japan, where our technology and consumer
electronics investments have done quite well. We believe the Japanese economic
recovery is sustainable and that the stock market can continue to progress. We
are still not very enthusiastic about the emerging markets--just 1% of our
present international equities allocation. Higher U.S. interest rates will
negatively impact these economies and we have seen some backsliding on political
and economic reforms promised when these economies hit rock bottom in 1998. In
addition, the emerging markets offer relatively few opportunities in attractive
growth industries like technology and telecommunications.
The outlook for the U.S. bond market remains cloudy. The long end of the
U.S. bond market has been relatively stable despite six Federal Reserve rate
hikes. This implies the market believes inflation will remain subdued and views
Fed rate hikes as insurance against any unpleasant surprises on the inflation
front. However, we are being a little cautious and continue to favor 10-year
U.S. Treasury Inflation Indexed Bonds (TIIs), which adjusted for the current
inflation rate offer materially higher yields than conventional 10-year Treasury
Bonds.
We are investigating evolving opportunities in European government bonds,
where central banks have done a good job controlling inflation and setting the
stage for the Euro to strengthen in the year ahead. Our Latin American and
Mexican fixed income investments have been quite productive, and we believe will
continue to enhance fixed income returns. We are still underweighted in Japanese
government bonds, believing that high government debt and any sign of economic
recovery will eventually force the central bank to abandon its zero interest
rate policy. High government debt will also spell trouble for longer maturity
bonds.
In conclusion, we believe the longer term prospects for global financial
assets remain quite appealing. Synchronized global growth, good corporate
earnings, and sound corporate and government balance sheets are very good news
for financial assets. Global stock and bond markets are in the process of
adjusting for higher interest rates and the resulting volatility will likely
produce uneven results. In this environment, diversification and risk averse
securities selection--the foundations of our investment strategy--are
particularly critical.
Sincerely,
/s/ Dave Redo /s/ Pete Landini
/s/ Andrew Pang /s/ Sandie Kinchen
/s/ Al Kirschbaum /s/ Bob Haddick
The Fremont Asset Allocation Committee
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FREMONT GLOBAL FUND
GEOGRAPHIC DIVERSIFICATION
AS OF 04/30/00
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[GRAPHIC OMITTED]
CANADA 2.2%
UNITED STATES 38.6%
CASH (U.S.) 22.4%
EMERGING MARKETS LATIN AMERICA 2.5%
EMERGING MARKETS OTHER 1.1%
EUROPE 21.0%
JAPAN 7.7%
PACIFIC RIM 4.5%
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GROWTH OF $10,000 (1)
[GRAPHIC OMITTED]
<TABLE>
<CAPTION>
LEHMAN BROS. SALOMON NON-US
FREMONT S&P 500 INTERMEDIATE GOVT./ MSCI EAFE GOVT. BOND INDEX
GLOBAL FUND INDEX CORP. BOND INDEX INDEX (CURRENCY HEDGED)
----------- ----- ---------------- ----- -----------------
<S> <C> <C> <C> <C> <C>
18-Nov-88 10,000 10,000 10,000 10,000 10,000
30-Nov-88 10,040 10,281 9,966 10,161 10,004
31-Dec-88 10,123 10,467 9,975 10,218 10,084
31-Jan-89 10,415 11,223 10,080 10,398 10,141
28-Feb-89 10,325 10,944 10,037 10,451 10,055
31-Mar-89 10,506 11,201 10,081 10,246 10,125
30-Apr-89 10,677 11,777 10,282 10,341 10,223
31-May-89 10,828 12,254 10,486 9,779 10,228
30-Jun-89 10,878 12,187 10,750 9,614 10,317
31-Jul-89 11,391 13,281 10,970 10,822 10,542
31-Aug-89 11,512 13,538 10,829 10,335 10,551
30-Sep-89 11,462 13,485 10,880 10,806 10,495
31-Oct-89 11,371 13,167 11,110 10,371 10,489
30-Nov-89 11,519 13,439 11,216 10,893 10,465
31-Dec-89 11,735 13,758 11,247 11,295 10,500
31-Jan-90 11,373 12,835 11,175 10,874 10,292
28-Feb-90 11,331 13,000 11,217 10,116 10,138
31-Mar-90 11,373 13,341 11,231 9,062 10,133
30-Apr-90 11,203 13,010 11,192 8,990 10,125
31-May-90 11,810 14,278 11,438 10,016 10,376
30-Jun-90 11,842 14,180 11,591 9,928 10,430
31-Jul-90 11,927 14,134 11,753 10,068 10,471
31-Aug-90 11,341 12,857 11,704 9,090 10,330
30-Sep-90 10,873 12,224 11,795 7,823 10,272
31-Oct-90 11,070 12,179 11,931 9,042 10,567
30-Nov-90 11,349 12,961 12,112 8,509 10,740
31-Dec-90 11,527 13,318 12,278 8,647 10,847
31-Jan-91 11,797 13,907 12,403 8,926 11,053
28-Feb-91 12,270 14,902 12,501 9,883 11,216
31-Mar-91 12,315 15,255 12,586 9,290 11,221
30-Apr-91 12,371 15,297 12,724 9,381 11,276
31-May-91 12,607 15,955 12,802 9,479 11,343
30-Jun-91 12,258 15,228 12,811 8,782 11,282
31-Jul-91 12,596 15,940 12,954 9,213 11,384
31-Aug-91 12,810 16,315 13,202 9,026 11,531
30-Sep-91 12,911 16,046 13,429 9,535 11,719
31-Oct-91 13,105 16,259 13,582 9,671 11,802
30-Nov-91 12,872 15,604 13,738 9,219 11,840
31-Dec-91 13,676 17,386 14,073 9,695 12,051
31-Jan-92 13,595 17,064 13,946 9,488 12,152
29-Feb-92 13,747 17,282 14,001 9,148 12,192
31-Mar-92 13,466 16,945 13,946 8,544 12,123
30-Apr-92 13,501 17,440 14,068 8,585 12,160
31-May-92 13,773 17,533 14,286 9,160 12,292
30-Jun-92 13,655 17,277 14,498 8,726 12,342
31-Jul-92 13,808 17,975 14,786 8,502 12,428
31-Aug-92 13,844 17,612 14,934 9,035 12,468
30-Sep-92 13,964 17,815 15,138 8,856 12,673
31-Oct-92 14,035 17,879 14,941 8,392 12,889
30-Nov-92 14,218 18,482 14,884 8,471 12,895
31-Dec-92 14,389 18,722 15,083 8,515 13,017
31-Jan-93 14,450 18,858 15,375 8,514 13,154
28-Feb-93 14,609 19,115 15,618 8,771 13,395
31-Mar-93 14,916 19,527 15,681 9,536 13,358
30-Apr-93 14,940 19,049 15,806 10,441 13,351
31-May-93 15,089 19,558 15,771 10,662 13,416
30-Jun-93 15,212 19,623 16,019 10,495 13,666
31-Jul-93 15,423 19,526 16,058 10,863 13,819
31-Aug-93 15,896 20,263 16,313 11,449 14,091
30-Sep-93 16,095 20,114 16,381 11,192 14,185
31-Oct-93 16,493 20,527 16,425 11,536 14,369
30-Nov-93 16,330 20,342 16,333 10,528 14,490
31-Dec-93 17,209 20,592 16,408 11,288 14,763
31-Jan-94 17,436 21,284 16,590 12,242 14,650
28-Feb-94 16,944 20,707 16,344 12,208 14,362
31-Mar-94 16,249 19,808 16,075 11,683 14,273
30-Apr-94 16,312 20,064 15,965 12,178 14,194
31-May-94 16,375 20,392 15,976 12,108 14,084
30-Jun-94 16,198 19,887 15,978 12,279 13,930
31-Jul-94 16,514 20,545 16,208 12,397 14,026
31-Aug-94 16,982 21,381 16,259 12,691 13,893
30-Sep-94 16,615 20,864 16,109 12,291 13,934
31-Oct-94 16,780 21,344 16,108 12,700 13,982
30-Nov-94 16,447 20,560 16,035 12,089 14,163
31-Dec-94 16,491 20,862 16,091 12,166 14,169
31-Jan-95 16,310 21,403 16,362 11,699 14,319
28-Feb-95 16,516 22,231 16,700 11,665 14,501
31-Mar-95 16,877 22,889 16,795 12,392 14,821
30-Apr-95 17,238 23,564 17,004 12,858 15,059
31-May-95 17,851 24,498 17,517 12,705 15,540
30-Jun-95 18,060 25,073 17,635 12,483 15,517
31-Jul-95 18,608 25,908 17,636 13,261 15,702
31-Aug-95 18,568 25,968 17,797 12,756 15,813
30-Sep-95 18,858 27,051 17,925 13,004 16,073
31-Oct-95 18,924 26,975 18,124 12,654 16,240
30-Nov-95 19,204 28,161 18,361 13,006 16,571
31-Dec-95 19,669 28,683 18,554 13,530 16,710
31-Jan-96 20,294 29,669 18,714 13,586 16,896
29-Feb-96 20,225 29,955 18,495 13,632 16,707
31-Mar-96 20,294 30,244 18,401 13,921 16,869
30-Apr-96 20,725 30,688 18,336 14,326 17,034
31-May-96 20,865 31,480 18,321 14,063 17,162
30-Jun-96 21,006 31,599 18,516 14,141 17,304
31-Jul-96 20,458 30,203 18,571 13,728 17,420
31-Aug-96 20,727 30,840 18,586 13,759 17,662
30-Sep-96 21,392 32,576 18,844 14,125 18,019
31-Oct-96 21,520 33,474 19,178 13,980 18,314
30-Nov-96 22,474 36,005 19,431 14,536 18,655
31-Dec-96 22,416 35,291 19,307 14,349 18,685
31-Jan-97 22,856 37,497 19,382 13,847 18,913
28-Feb-97 23,019 37,790 19,419 14,074 19,034
31-Mar-97 22,498 36,236 19,285 14,125 18,964
30-Apr-97 22,892 38,400 19,512 14,200 19,146
31-May-97 23,876 40,739 19,674 15,124 19,236
30-Jun-97 24,615 42,564 19,853 15,958 19,557
31-Jul-97 25,872 45,951 20,256 16,216 19,854
31-Aug-97 24,631 43,376 20,155 15,005 19,896
30-Sep-97 25,624 45,752 20,389 15,845 20,226
31-Oct-97 24,319 44,224 20,615 14,627 20,366
30-Nov-97 24,456 46,271 20,661 14,478 20,506
31-Dec-97 24,642 47,066 20,826 14,604 20,754
31-Jan-98 24,432 47,586 21,099 15,272 21,009
28-Feb-98 25,730 51,018 21,082 16,252 21,196
31-Mar-98 26,555 53,631 21,149 16,753 21,386
30-Apr-98 26,856 54,170 21,255 16,885 21,499
31-May-98 26,538 53,239 21,410 16,803 21,795
30-Jun-98 26,555 55,402 21,547 16,931 21,881
31-Jul-98 26,306 54,812 21,623 17,102 22,077
31-Aug-98 23,363 46,887 21,962 14,983 22,502
30-Sep-98 24,183 49,890 22,513 14,524 23,021
31-Oct-98 25,200 53,949 22,491 16,038 23,009
30-Nov-98 26,252 57,218 22,489 16,860 23,227
31-Dec-98 27,108 60,515 22,579 17,525 23,147
31-Jan-99 27,416 63,046 22,703 17,473 23,436
28-Feb-99 26,782 61,085 22,369 17,057 23,299
31-Mar-99 27,493 63,529 22,537 17,769 23,574
30-Apr-99 28,209 65,988 22,607 18,489 23,873
31-May-99 27,648 64,430 22,433 17,537 23,812
30-Jun-99 28,655 68,006 22,448 18,220 23,426
31-Jul-99 28,498 65,884 22,428 18,762 23,389
31-Aug-99 28,557 65,555 22,446 18,830 23,435
30-Sep-99 28,596 63,758 22,655 19,020 23,539
31-Oct-99 29,578 67,793 22,714 19,732 23,592
30-Nov-99 30,681 69,176 22,741 20,418 23,729
31-Dec-99 33,168 73,251 22,666 22,250 23,814
31-Jan-00 32,301 69,573 22,582 20,837 23,836
29-Feb-00 34,078 68,258 22,767 21,398 23,998
31-Mar-00 34,642 74,934 23,004 22,227 24,333
30-Apr-00 33,304 72,679 22,951 21,057 24,453
</TABLE>
AVERAGE ANNUAL RETURNS FOR PERIODS ENDED 4/30/00
1 YEAR 5 YEARS 10 YEARS SINCE INCEPTION (11/18/88)
--------------------------------------------------------------
18.06% 14.07% 11.51% 11.08%
ANNUAL RETURNS TOP TEN HOLDINGS
11/18/88-10/31/89* +13.71% S&P 500 Futures, 189 Contracts,
11/01/89-10/31/90 -2.64% Exp. Jun. 2000 ...................... 8.7%
11/01/90-10/31/91 +18.38% S&P 500 Futures, 31 Contracts,
11/01/91-10/31/92 +7.10% Exp. Jun. 2000 ...................... 1.4%
11/01/92-10/31/93 +17.51% U.S. Treasury Inflation Indexed Bond,
11/01/93-10/31/94 +1.74% 3.880%, 01/05/09 .................... 0.8%
11/01/94-10/31/95 +12.78% 10-yr. U.S. Treasury Bond Futures,
11/01/95-10/31/96 +13.72% 51 Contracts, Exp. Jun. 2000 ........ 0.6%
11/01/96-10/31/97 +13.01% General Electric Co. ................... 0.6%
11/01/97-10/31/98 +3.62% Vodafone AirTouch PLC .................. 0.6%
11/01/98-10/31/99 +17.37% Ericsson LM (Class B) .................. 0.6%
11/01/99-4/30/00* +12.60% Tokyo Electron Ltd. .................... 0.5%
U.S. Treasury Inflation Indexed Bond,
3.630%, 07/15/02 .................... 0.5%
30-yr. U.S. Treasury Bond Futures,
Exp. Jun. 2000 ...................... 0.5%
TOTAL .......................... 14.8%
*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.
2 and 3 FREMONT MUTUAL FUNDS
<PAGE>
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FREMONT INTERNATIONAL GROWTH FUND
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The Portfolio Management Team
Capital Guardian Trust Company
[PHOTOS]
Robert Ronus, David I. Fisher, Nilly Sikorsky,
Hartmut Giesecke, Lionel M. Sauvage, Nancy J.
Kyle, Rudolf M. Staehlin, and 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 elaborate
and successful global intelligence networks.
CGTC employs a multiple portfolio manager system. Eight individual portfolio
managers and the collective research analyst team are each given a portion of
the portfolio's assets to manage. The investment styles of the portfolio
managers vary. 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 month period ended April 30, 2000, the Fremont International
Growth Fund returned 17.92% compared to the Morgan Stanley Capital International
Europe, Australia, and Far East (EAFE) Index's 6.72% gain.
In first half fiscal 2000, industry group allocation had a much greater
impact on returns than country allocation. The Fund benefited by being
significantly over-weighted in high technology cyclicals, primarily
semi-conductor and semi-conductor equipment manufacturers, and in telecom-
munications, principally wireless companies. Financial companies and consumer
stocks were our biggest portfolio laggards.
In the first quarter of calendar 2000, we began "taking the tops off"
positions in the rather richly valued technology and telecommunications groups
and using the proceeds to buy high quality stocks in depressed "old economy"
sectors like banking, (the UK's Lloyds Bank and the Netherlands' ABN Amro), and
branded consumer goods companies (Heineken). We will likely continue to move in
this direction. As we do, the portfolio may hit some short term performance
air-pockets--our timing is rarely perfect. However, over the longer term, we
expect to be rewarded for our proactive investment posture.
Despite valuation concerns that have inspired us to trim our positions, we
will probably remain materially overweighted in technology and mobile
telecommunications. Based on trailing and one year forward P/Es, these stocks
are rather extravagantly valued and may be vulnerable to a correction. However,
we believe earnings will continue to be very strong and exceed consensus
expectations. Looking back a few years down the road, we suspect present
valuations may not be as economically unrealistic as some market observers
currently think. We don't know when investors will gravitate to the outstanding
values we see some "old economy" sectors. But, we will likely continue to
increase our exposure in some of these areas.
Let me offer you an example of an "old economy" stock we find quite
compelling. Lloyds Bank is a retail bank in Great Britain. The stock is 38%
below its eighteen month high--a casualty of investors' perception that rising
short term interest rates and an inverted yield curve will punish profitability.
We think earnings will remain relatively strong. Lloyds management has done a
great job cutting costs and the company's 1999 Return on Equity (ROE) was an
impressive 29.2%. The stock is trading at 14.3 times trailing earnings and about
12 times our year 2000 earnings estimates. We get a 4% yield while we wait for
the stock to capture other investors' attention.
We are not planning any major shifts in country allocation. At the end of
this reporting period, the portfolio was modestly overweighted in the Pacific
Basin (37.5% of assets versus EAFE's 33.5%) and substantially underweighted in
Europe (47.8% compared to EAFE's 66.5%). The portfolio has 3.2% of assets
invested in Canada and 2.6% in the emerging markets in the form of blue chip
stocks, many of which are traded as American Depository Receipts (ADRs) on the
New York Stock Exchange.
European economies are growing, corporate profits are good, and although
interest rates are trending higher, they aren't likely to rise as far or as fast
as in the U.S. Corporate restructuring continues to create value. However,
compared to Asia, Europe is much farther along on the profit recovery, and at
27.3 times trailing earnings and 4.44 times book value, European stocks are no
longer screaming bargains.
On a P/E basis, Japan doesn't appear cheap either. But, we think Japan is
in the embryonic stages of a sustainable profit recovery, and at just 2.46 times
book value, Japanese stocks represent good value. The great majority of our
Japanese investments are in high tech companies whose earnings are recovering
strongly. We are now scrutinizing potential investments in companies serving the
long dormant domestic economy, which is beginning to show signs of life. Also,
high yielding postal savings deposits are maturing and we think a large
percentage of this money will go into equities. This should provide a
performance tailwind for the market.
In closing, we note the seeds for this period's superior results were
planted in mid-1998, when we began moving into then depressed technology and
telecommunications stocks and increasing our commitments in Japan--both somewhat
contrarian moves inspired by our bias to good value. We believe taking some
profits in industry groups that have rewarded us so generously over the last
year and using the proceeds to invest in some fundamentally attractive laggards
in out-of-favor industries will set the stage for superior performance in the
future.
Sincerely,
/s/ Robert Ronus
Robert Ronus and Capital Guardian Trust Company's Portfolio Counselors Team
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FREMONT INTERNATIONAL GROWTH FUND
GEOGRAPHIC DIVERSIFICATION
AS OF 04/30/00
--------------------------------------------------------------------------------
[GRAPHIC OMITTED]
CANADA 3.2%
UNITED STATES 2.4%
CASH (U.S.) 6.5%
EMERGING MARKETS LATIN AMERICA 2.2%
EMERGING MARKETS AFRICA 0.4%
EUROPE 47.8%
JAPAN 27.3%
PACIFIC RIM 10.2%
--------------------------------------------------------------------------------
GROWTH OF $10,000 (1)
[GRAPHIC OMITTED]
FREMONT INTERNATIONAL MSCI EAFE
GROWTH FUND INDEX
----------- -----
1-Mar-94 10,000 10,000
31-Mar-94 9,634 9,569
30-Apr-94 9,666 9,975
31-May-94 9,676 9,918
30-Jun-94 9,488 10,058
31-Jul-94 9,718 10,155
31-Aug-94 10,178 10,395
30-Sep-94 10,031 10,068
31-Oct-94 10,230 10,403
30-Nov-94 9,739 9,903
31-Dec-94 9,689 9,965
31-Jan-95 9,020 9,582
28-Feb-95 9,198 9,555
31-Mar-95 9,386 10,151
30-Apr-95 9,699 10,533
31-May-95 9,950 10,407
30-Jun-95 10,159 10,225
31-Jul-95 10,734 10,862
31-Aug-95 10,473 10,448
30-Sep-95 10,546 10,652
31-Oct-95 10,243 10,366
30-Nov-95 10,148 10,654
31-Dec-95 10,387 11,083
31-Jan-96 10,746 11,129
29-Feb-96 10,915 11,166
31-Mar-96 10,999 11,403
30-Apr-96 11,431 11,735
31-May-96 11,326 11,519
30-Jun-96 11,516 11,584
31-Jul-96 10,915 11,245
31-Aug-96 11,104 11,270
30-Sep-96 11,368 11,570
31-Oct-96 10,967 11,451
30-Nov-96 11,516 11,907
31-Dec-96 11,738 11,754
31-Jan-97 11,749 11,342
28-Feb-97 11,770 11,528
31-Mar-97 11,527 11,570
30-Apr-97 11,421 11,631
31-May-97 12,098 12,388
30-Jun-97 12,542 13,071
31-Jul-97 13,124 13,283
31-Aug-97 11,717 12,291
30-Sep-97 12,161 12,979
31-Oct-97 10,966 11,982
30-Nov-97 10,723 11,859
31-Dec-97 10,755 11,963
31-Jan-98 10,904 12,510
28-Feb-98 11,856 13,313
31-Mar-98 12,027 13,723
30-Apr-98 12,219 13,831
31-May-98 12,048 13,764
30-Jun-98 11,909 13,868
31-Jul-98 11,973 14,009
31-Aug-98 10,124 12,273
30-Sep-98 10,156 11,897
31-Oct-98 11,054 13,137
30-Nov-98 11,578 13,810
31-Dec-98 11,810 14,355
31-Jan-99 12,348 14,313
28-Feb-99 12,020 13,972
31-Mar-99 12,628 14,555
30-Apr-99 13,248 15,144
31-May-99 12,804 14,365
30-Jun-99 13,833 14,925
31-Jul-99 14,301 15,368
31-Aug-99 14,499 15,424
30-Sep-99 14,733 15,580
31-Oct-99 15,332 16,163
30-Nov-99 16,310 16,725
31-Dec-99 18,577 18,226
31-Jan-00 18,115 17,068
29-Feb-00 18,784 17,527
31-Mar-00 19,222 18,207
30-Apr-00 18,079 17,249
AVERAGE ANNUAL RETURNS FOR PERIODS ENDED 04/30/00
1 YEAR 3 YEARS 5 YEARS SINCE INCEPTION (3/1/94)
-----------------------------------------------------------
36.46% 16.54% 13.26% 10.08%
ANNUAL RETURNS TOP TEN HOLDINGS
3/1/94-10/31/94* +2.30% Vodafone AirTouch PLC .................. 4.3%
11/01/94-10/31/95 +0.13% Tokyo Electron Ltd. .................... 2.7%
11/01/95-10/31/96 +7.07% Nokia Corp., ADR ....................... 2.7%
11/01/96-10/31/97 -0.01% NTT DoCoMo, Inc. ....................... 2.3%
11/01/97-10/31/98 +0.80% NEC Corp. .............................. 1.8%
11/01/98-10/31/99 +38.70% Taiwan Semiconductor
11/01/99-4/30/00* +17.92% Manufacturing Co. Ltd. .............. 1.7%
Siemens AG ............................. 1.6%
Telefonos De Mexico SA, ADR ............ 1.4%
STMicroelectronics NV .................. 1.4%
Murata Manufacturing Co. Ltd. .......... 1.4%
TOTAL .......................... 21.3%
*Unannualized (1) Assumes initial investment of $10,000 on inception date, March
1, 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 Capital International EAFE Index.
4 and 5 FREMONT MUTUAL FUNDS
<PAGE>
--------------------------------------------------------------------------------
FREMONT EMERGING MARKETS FUND
--------------------------------------------------------------------------------
Portfolio Manager
CMG First State (Hong Kong) LLC
------------
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.
To Our Shareholders,
For the six month period ended April 30, 2000, the Fremont Emerging Markets
Fund returned 24.14% compared to the Morgan Stanley Capital International
Emerging Markets Free (MSCI-EMF) Index's 13.87%, and the IFC Investable Index's
12.31% gains.
We are pleased to report excellent absolute and relative returns for the
Fund in first half fiscal 2000. Our devotion to technology, media, and
telecommunications (TMT) stocks -- more than 50% of portfolio assets throughout
this reporting period -- helped drive returns. In general, our bias to large,
reasonably valued growth stocks in all industry group categories also worked in
our favor. The Fund significantly outperformed its index benchmarks during the
first four months of this reporting period and modestly underperformed during
the last two months, due primarily to global profit taking in TMT stocks.
We remain committed to emerging market technology, media, and
telecommunications stocks. The recent correction in our TMT holdings was spawned
by Nasdaq's free-fall in March/April. In essence, Nasdaq sneezed and our
portfolio got the sniffles. It is important to note, however, that the sharp
decline in Nasdaq resulted from investors finally questioning sky high
valuations, not because of any change in the very favorable prospects for
companies in these strong global growth industries. Our TMT holdings were and
are considerably more reasonably valued than comparable U.S. companies. In fact,
many of our portfolio companies have price/earnings ratios below earnings growth
rates--something almost unheard of in the TMT sector of the U.S. equities
market.
Our single largest technology holding, South Korea's Samsung, provides a
good example. Samsung is one of the world's largest and most cost efficient
technology manufacturers. It has a strong market position in virtually all of
its businesses, with 19% of the global DRAM market, 15% of the SRAM market, 18%
of the Thin Film Transistor Liquid Crystal Display (TFT - LCD) market, and a
whopping 55% of the specialist CDMA cellular handset market. These are all good
growth businesses. Yet, Samsung trades at just 10 times earnings, which we are
projecting to grow at 20%-30% annually over the next five years. In view of the
still heady valuations for high quality U.S. technology companies, Samsung
appears to be an exceptional bargain.
Taiwan Semi-conductor Manufacturing Co. (TSMC) is another good earnings
growth/reasonable valuation example. TSMC controls over 40% of the fast growing
global semi-conductor foundry industry. It is a highly profitable enterprise
with projected long term earnings growth of 30%, driven by increased outsourcing
in the semi conductor industry and the fast growth in Fabless Design Houses
(chip design firms with no manufacturing capacity). At approximately 20 times
2001 earnings, TSMC is not as cheap as Samsung, but still much more reasonably
priced than U.S. technology companies with comparable earnings growth rates. As
I scan down the list of our other TMT holdings, I see similarly attractive
earnings growth rates and valuations. We feel it would be a very big mistake to
reduce our positions in these stocks simply because excessive valuations for
U.S. TMT stocks are being trimmed.
This leads us to a related issue that deserves some comment. Investors are
well aware that when the Dow, S&P 500, or Nasdaq takes a beating, foreign stock
markets generally get bruised. For example, if the S&P loses 4% on Tuesday, you
can safely wager Hong Kong stocks will open lower on Wednesday. However, this is
a short to intermediate term phenomena. We will continue to see emerging markets
buck longer term trends in the U.S. and developed European markets. Why? Because
there are different macro-economic drivers and market forces at work. To wit,
rising interest rates are currently putting pressure on U.S. and UK stocks, yet
interest rates are declining in Brazil and Hungary. As mentioned earlier,
excessive valuations are the primary cause of Nasdaq's recent decline, whereas
high quality technology stocks in emerging markets are fundamentally cheap.
Emerging nation equities markets may follow the U.S. stock market's lead for a
day, a week, or even a month. But, longer term these markets will rise or fall
based on varying economic trends and their own fundamental merits. In short, the
argument for diversifying your portfolio via some exposure to the emerging
markets remains compelling.
At the close of this reporting period, portfolio assets are distributed as
follows: approximately 50% Asia, 20% Latin America (primarily Mexico and
Brazil), 20% Europe and the Middle East, 6% South Africa, and 4% cash and U.S.
securities. In general, the trends that have contributed to the emerging market
recovery--political and monetary reform, firming commodities prices, corporate
restructuring, and a new focus on profitability--are still intact. Over the
short term, a stuttering U.S. equities market may restrain emerging market
investment returns. Longer term, however, we believe the emerging markets will
continue trend higher and reward investors.
Sincerely,
Portfolio Manager
CMG First State (Hong Kong) LLC
--------------------------------------------------------------------------------
FREMONT EMERGING MARKETS FUND
GEOGRAPHIC DIVERSIFICATION
AS OF 4/30/00
--------------------------------------------------------------------------------
[GRAPHIC OMITTED]
UNITED STATES 3.7%
EMERGING MARKETS LATIN AMERICA 20.2%
EMERGING MARKETS AFRICA 6.2%
EMERGING MARKETS EUROPE 18.5%
EMERGING MARKETS MIDDLE EAST 1.6%
EMERGING MARKETS ASIA 12.1%
PACIFIC RIM 37.7%
--------------------------------------------------------------------------------
GROWTH OF $10,000 (1)
[GRAPHIC OMITTED]
FREMONT EMERGING MSCI EMERGING
MARKETS FUND MARKETS FREE
------------ ------------
30-Jun-96 10,000 10,000
31-Jul-96 9,560 9,317
31-Aug-96 9,760 9,555
30-Sep-96 9,920 9,638
31-Oct-96 9,688 9,381
30-Nov-96 9,920 9,538
31-Dec-96 9,901 9,581
31-Jan-97 10,803 10,235
28-Feb-97 11,167 10,673
31-Mar-97 10,995 10,393
30-Apr-97 11,279 10,411
31-May-97 11,705 10,709
30-Jun-97 12,383 11,282
31-Jul-97 12,931 11,451
31-Aug-97 11,917 9,994
30-Sep-97 12,475 10,270
31-Oct-97 10,904 8,585
30-Nov-97 10,756 8,272
31-Dec-97 10,930 8,471
31-Jan-98 10,249 7,807
28-Feb-98 11,000 8,622
31-Mar-98 11,231 8,996
30-Apr-98 11,150 8,898
31-May-98 9,394 7,678
30-Jun-98 8,723 6,873
31-Jul-98 9,001 7,091
31-Aug-98 6,262 5,041
30-Sep-98 6,447 5,360
31-Oct-98 6,805 5,925
30-Nov-98 6,771 6,418
31-Dec-98 6,748 6,325
31-Jan-99 6,713 6,223
28-Feb-99 6,574 6,283
31-Mar-99 6,921 7,111
30-Apr-99 7,880 7,991
31-May-99 7,545 7,944
30-Jun-99 8,619 8,846
31-Jul-99 9,324 8,606
31-Aug-99 9,486 8,684
30-Sep-99 9,047 8,390
31-Oct-99 9,266 8,569
30-Nov-99 11,000 9,337
31-Dec-99 12,855 10,525
31-Jan-00 12,723 10,587
29-Feb-00 13,285 10,727
31-Mar-00 13,010 10,780
30-Apr-00 11,504 9,758
AVERAGE ANNUAL RETURNS FOR PERIODS ENDED 04/30/00
1 YEAR 3 YEARS SINCE INCEPTION (6/24/96)
------------------------------------------------
45.99% 1.52% 3.71%
ANNUAL RETURNS TOP TEN HOLDINGS
6/24/96-10/31/96* -3.12% Samsung Electronics Ltd., GDR .......... 6.0%
11/01/96-10/31/97 +12.55% Phoenix Pulp And Paper PLC ............. 3.7%
11/01/97-10/31/98 -37.59% SK Telecom Ltd. ........................ 3.6%
11/01/98-10/31/99 +36.16% Taiwan Semiconductor
11/01/99-4/30/00* +24.14% Manufacturing Co. Ltd. .............. 3.5%
Surgutneftegaz-SP, ADR ................. 3.2%
Kookmin Bank ........................... 3.1%
Hyundai Electronics Industries Co. ..... 3.0%
China Telecom (Hong Kong) Ltd. ......... 3.0%
Infosys Technologies Ltd., ADR ......... 2.9%
Pliva D.D., GDR (Registered S) ......... 2.8%
TOTAL .......................... 34.8%
*Unannualized (1) Assumes initial of $10,000 on inception date, June 24, 1996.
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
MSCI Emerging Markets Free Index.
6 and 7 FREMONT MUTUAL FUNDS
<PAGE>
--------------------------------------------------------------------------------
FREMONT U.S. MICRO-CAP FUND
--------------------------------------------------------------------------------
Robert E. Kern, Jr.
Portfolio Manager
Kern Capital Management LLC
[PHOTO]
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, 2000, the Fremont U.S. Micro-Cap Fund
gained 47.21% compared to the Russell 2000's 18.72% advance. We are pleased to
have once again achieved excellent absolute and relative returns.
We experienced two very different market environments in first half fiscal
2000--what could be described as a buyers' panic (particularly in the tech
sector) from November through February, and a sharp, but rather orderly
correction in March and April. Our portfolio excelled through the first four
months of this reporting period. At the end of February, the Fund was up 87.58%
versus a 35.23% gain for the Russell 2000 benchmark. Perhaps more importantly,
the portfolio held up relatively well in March and April--declining 21.52%
compared to the Russell 2000's 12.21% retreat.
We have a long history of adding value when the market is trending up and
holding our own during the down drafts. This is testament to our team's research
intensive stock selection discipline and particularly our success identifying
promising companies not yet "discovered" by Wall Street or other institutional
investors. In our opinion, finding fundamentally attractive stocks ahead of the
competition and avoiding mistakes is the key to superior micro-cap performance
throughout the market cycles.
The team's focus on the most innovative sectors of the economy has also
contributed to our success. During the first half of fiscal 2000, our technology
holdings posted the most impressive gains and were responsible for approximately
two-thirds of the Fund's total return. At the end of the reporting period,
technology stocks comprised 27% of portfolio assets, down from 33% at the end of
fiscal 1999. This reflects profit taking in a sector in which we believe
valuations had become extended. Our healthcare holdings, principally medical
device companies and selected biotechs, also contributed to returns. Although
just 11% of portfolio assets, two of our healthcare investments were on our top
ten performance list. Our consumer and services holdings (8% and 15% of assets
respectively) lagged. Reflecting what has been a difficult environment for
consumer stocks, our allocation was reduced from 20% of portfolio assets over
the course of this reporting period.
Cash reserves had increased significantly due to the rapid influx of new
investment in late 1999/early 2000 and our willingness to take profits in
holdings that we believed had gotten "ahead of themselves". We closed the Fund
to new shareholders on March 10, 2000, to give ourselves time to put this cash
to work in an orderly and prudent fashion. Having some "dry powder" to take
advantage of evolving opportunities in this volatile market, is a terrific
advantage, which we believe will be clearly demonstrated in the year ahead.
Where do micro-cap stocks go from here? We don't know. We are somewhat
concerned that even after the substantial haircut endured over the last several
months, in general, valuations of many micro-cap growth companies remain
relatively high. However, our investment team is still finding some
fundamentally compelling investment opportunities. During challenging market
environments, we focus on stocks we believe have the greatest potential to
attract favorable investor attention when the market stabilizes--a strategy that
has worked quite well for us in the past--most recently following the sharp
decline in micro-cap stocks in third quarter 1998.
In closing, as you well know, the micro-cap stock market has undergone a
significant correction in recent months. However, market declines create some
exceptional long term investment opportunities. We are fortunate to have
sufficient cash reserves to build positions in opportunities evolving every day,
and are very pleased that the Fund's shareholder base has remained stable during
the recent correction. We believe more and more of our shareholders understand
that volatility is a fact of life in the micro-cap stock market and that staying
the course is the most reliable way to earn superior long term returns.
Sincerely,
/s/ Robert E. Kern, Jr.
Robert E. Kern, Jr.
Portfolio Manager
--------------------------------------------------------------------------------
FREMONT U.S. MICRO-CAP FUND
PORTFOLIO DIVERSIFICATION
AS OF 4/30/00
--------------------------------------------------------------------------------
[GRAPHIC OMITTED]
BUSINESS EQUIPMENT & SERVICES (15.0%)
CASH (24.7%)
OTHER (3.9%)
CONSUMER SERVICES (4.0%)
CAPITAL GOODS (4.3%)
CONSUMER DURABLES (4.4%)
TECHNOLOGY (SOFTWARE) (4.9%)
RETAIL (5.2%)
TECHNOLOGY (EQUIPMENT) (10.8%)
HEALTH CARE (11.3%)
TECHNOLOGY (COMPONENTS) (11.5%)
--------------------------------------------------------------------------------
GROWTH OF $10,000 (1)
[GRAPHIC OMITTED]
FREMONT U.S. RUSSELL 2000
MICRO-CAP FUND INDEX
-------------- -----
30-Jun-94 10,000 10,000
31-Jul-94 10,220 10,164
31-Aug-94 10,320 10,730
30-Sep-94 10,470 10,694
31-Oct-94 10,360 10,651
30-Nov-94 10,000 10,221
31-Dec-94 10,150 10,494
31-Jan-95 10,350 10,362
28-Feb-95 10,671 10,793
31-Mar-95 11,122 10,978
30-Apr-95 11,392 11,222
31-May-95 11,913 11,415
30-Jun-95 12,495 12,007
31-Jul-95 13,346 12,699
31-Aug-95 14,188 12,961
30-Sep-95 14,549 13,193
31-Oct-95 14,368 12,602
30-Nov-95 15,020 13,132
31-Dec-95 15,635 13,479
31-Jan-96 16,174 13,465
29-Feb-96 17,250 13,884
31-Mar-96 17,810 14,167
30-Apr-96 19,839 14,925
31-May-96 21,506 15,513
30-Jun-96 20,699 14,876
31-Jul-96 18,897 13,577
31-Aug-96 20,057 14,365
30-Sep-96 21,009 14,926
31-Oct-96 20,326 14,696
30-Nov-96 21,755 15,302
31-Dec-96 23,250 15,701
31-Jan-97 24,428 16,016
28-Feb-97 23,012 15,627
31-Mar-97 21,011 14,889
30-Apr-97 20,438 14,931
31-May-97 22,979 16,592
30-Jun-97 24,547 17,304
31-Jul-97 25,466 18,109
31-Aug-97 26,451 18,523
30-Sep-97 28,559 19,878
31-Oct-97 26,180 19,005
30-Nov-97 25,626 18,882
31-Dec-97 24,874 19,212
31-Jan-98 24,261 18,909
28-Feb-98 25,966 20,307
31-Mar-98 27,045 21,145
30-Apr-98 27,425 21,262
31-May-98 25,978 20,117
30-Jun-98 25,021 20,159
31-Jul-98 22,629 18,527
31-Aug-98 17,331 14,929
30-Sep-98 17,760 16,098
31-Oct-98 20,041 16,754
30-Nov-98 22,703 17,632
31-Dec-98 25,585 18,723
31-Jan-99 27,756 18,972
28-Feb-99 26,064 17,435
31-Mar-99 26,775 17,707
30-Apr-99 29,302 19,294
31-May-99 31,571 19,576
30-Jun-99 35,103 20,461
31-Jul-99 35,839 19,900
31-Aug-99 35,913 19,164
30-Sep-99 39,224 19,167
31-Oct-99 42,179 19,246
30-Nov-99 48,917 20,395
31-Dec-99 58,719 22,704
31-Jan-00 62,898 22,338
29-Feb-00 79,118 26,026
31-Mar-00 71,045 24,311
30-Apr-00 62,092 22,848
AVERAGE ANNUAL RETURNS FOR PERIODS ENDED 4/30/00
1 YEAR 3 YEARS 5 YEARS SINCE INCEPTION (6/30/94)
------------------------------------------------------------
111.91% 44.82% 40.35% 36.75%
ANNUAL RETURNS TOP TEN HOLDINGS
6/30/94-10/31/94* +3.60% ArthroCare Corp. ............... 5.0%
11/01/94-10/31/95 +38.68% Spectra-Physics Lasers, Inc. ... 3.9%
11/01/95-10/31/96 +41.46% Anaren Microwave, Inc. ......... 3.4%
11/01/96-10/31/97 +28.80% TeleTech Holdings, Inc. ........ 2.8%
11/01/97-10/31/98 -23.45% Netopia, Inc. .................. 2.8%
11/01/98-10/31/99 +110.46% MDSI Mobile Data Solutions, Inc. 2.5%
11/01/99-4/30/00* +47.21% California Micro Devices Corp. . 2.5%
Gene Logic, Inc. ............... 2.3%
Rent-Way, Inc. ................. 2.1%
Keithley Instruments, Inc. ..... 1.6%
TOTAL .................. 28.9%
*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. The returns shown were achieved during a
period of generally rising market values, especially in the technology sector.
Investors should not expect that such favorable returns can be achieved
consistently. Past performance does not guarantee future results. Share price
and return will vary so that your shares when redeemed may be worth more or less
than their original value. All performance figures assume the reinvestment of
all dividends and capital gains. Investments in newly emerging companies are
subject to erratic earning patterns, competitive conditions within the industry,
limited earnings history and the reliance on one or a limited number of
products. Unlike the Fremont U.S. Micro-Cap Fund, the Russell 2000, an index of
small capitalization U.S. equities is not available for investment and does not
incur expenses.
8 and 9 FREMONT MUTUAL FUNDS
<PAGE>
--------------------------------------------------------------------------------
FREMONT U.S. SMALL CAP FUND
--------------------------------------------------------------------------------
David G. Kern, CFA,
Portfolio Manager
Kern Capital Management LLC
[PHOTO]
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, 2000, the Fremont U.S. Small Cap Fund
returned 38.23% versus the Russell 2000 Index's 18.72% gain.
We are pleased with the performance of the Fund during the first half
fiscal 2000. However, it was a period marked by tremendous volatility, with
small cap stocks going straight up from November through February and straight
down in March and April. The Fund posted excellent returns in November, December
and February--outperforming its Russell 2000 benchmark by a wide margin. In
January, partly due to the strong performance of the prior two months, the Fund
lost ground on its benchmark. Although we began to get more cautious during
February, the correction during March and April took its toll on the Fund's
performance.
During challenging small-cap stock markets, our investment strategy focuses
on those companies we believe are best positioned to attract favorable investor
attention when the market turns around. We will usually decrease or eliminate
positions where the near term fundamental outlook is less clear or our
investment time horizon has been pushed out. This strategy has worked very well
for us in the past and we believe will once again be effective when the small
cap market rights itself.
When will the small cap market stabilize? In the last several weeks,
generally good first quarter earnings reports have helped put a floor under
small cap stock prices. However, as we head into the summer news doldrums,
investor focus will likely shift from these good earnings to pondering whether
still rather richly valued companies will meet earnings expectations in the
second and third quarters, typically a more difficult period for technology
companies. In essence, over the next several months, no news may not be good
news for small cap stocks. With a higher than normal cash position due to profit
taking and strong cash flows, we believe the Fund is well positioned to take
advantage of further volatility by buying the best companies at more attractive
valuations.
Looking past the next several months, we believe innovation will drive
earnings and the recognition of selected small-cap stocks. In essence, we think
the advance will be more discriminating. Throughout 1999 and into early 2000,
investors were throwing a lot of money into stocks with no profits and
questionable business plans. These were the kind of stocks that sustained the
most damage in the recent correction. Going forward, investors will likely focus
on companies with well conceived business models, strong cash flows, and either
real earnings or the realistic potential of becoming profitable in the not too
distant future.
Let me give you an example. TeleTech is in the electronic Customer
Relationship Management (eCRM) business. In the 1990's, corporate information
technology (IT) departments spent enormous sums of money building back office
systems for doing things like inventory management, general ledger accounting,
and payroll services. This was the business that put companies like SAP, Oracle,
and PeopleSoft on the map. Now IT officers are spending lots of money on the
front office--software and systems for interfacing with their customers.
TeleTech is a major beneficiary.
We have owned TeleTech for over two years and have steadily added to our
position as the fundamentals have kept improving. TeleTech is now poised to take
a giant step forward. In late 1999, the company announced a joint venture with
Ford Motor Company to handle all of Ford's customer relationship management--a
deal that in a few years could equal the size of TeleTech's revenues today.
TeleTech has added some additional marquee names to its client list this year,
including Allstate Insurance, Quest, Bell Atlantic, and North Point, a rapidly
growing provider of DSL for high speed internet access. Importantly, TeleTech is
taking the necessary steps to effectively manage its growth. It has added
management depth through the hiring of a new CEO/President and Chief Financial
Officer, and the sales, marketing, and technology staffs have been beefed up as
well. We think this will help insure against the kind of earnings stumbles that
have plagued so many fast growing small companies.
We are forecasting TeleTech's revenues to grow over 30% annually for the
next several years. We believe operating margins will expand from high single
digits to a mid-teen percentage rate as new customers are rolled out. Earnings
should grow from $0.62 per share this year to at least $0.90 in 2001, and
continue accelerating as margins expand. The stock is trading around 35 times
our 2001 earnings estimates, in our opinion a very reasonable valuation for a
company with such strong fundamentals.
In closing, we are pleased with the Fund's performance record over the past
year. We believe our focus on the most innovative sectors of the American
economy and our research intensive stock selection process, keyed on finding
high quality companies in the early stages of their major growth cycles, will
continue to deliver superior returns.
Sincerely,
/s/ David G. Kern
David G. Kern
Portfolio Manager
--------------------------------------------------------------------------------
FREMONT U.S. SMALL CAP FUND
SECTOR DIVERSIFICATION
AS OF 4/30/00
--------------------------------------------------------------------------------
[GRAPHIC OMITTED]
BUSINESS EQUIPMENT & SERVICES (18.0%)
CASH (19.9%)
OTHER (6.1%)
CONSUMER DURABLES (4.7%)
RETAIL (7.4%)
UTILITIES (4.9%)
HEALTH CARE (9.9%)
TECHNOLOGY (SOFTWARE) (11.0%)
TECHNOLOGY (EQUIPMENT) (5.7%)
TECHNOLOGY (COMPONENTS) (12.4%)
--------------------------------------------------------------------------------
GROWTH OF $10,000 (1)
[GRAPHIC OMITTED]
FREMONT U.S. RUSSELL 2000
SMALL CAP FUND INDEX
-------------- -----
23-Sep-97 10,000 10,000
30-Sep-97 10,060 10,103
31-Oct-97 9,594 9,659
30-Nov-97 9,474 9,597
31-Dec-97 9,557 9,765
31-Jan-98 9,547 9,611
28-Feb-98 10,510 10,321
31-Mar-98 11,021 10,747
30-Apr-98 10,961 10,806
31-May-98 10,169 10,224
30-Jun-98 10,660 10,246
31-Jul-98 9,717 9,416
31-Aug-98 7,481 7,588
30-Sep-98 7,992 8,182
31-Oct-98 8,895 8,515
30-Nov-98 9,777 8,961
31-Dec-98 11,242 9,516
31-Jan-99 11,803 9,643
28-Feb-99 10,740 8,861
31-Mar-99 11,683 9,000
30-Apr-99 12,274 9,806
31-May-99 12,525 9,949
30-Jun-99 13,729 10,399
31-Jul-99 14,621 10,114
31-Aug-99 14,561 9,740
30-Sep-99 15,614 9,742
31-Oct-99 16,420 9,782
30-Nov-99 19,894 10,366
31-Dec-99 25,320 11,539
31-Jan-00 23,390 11,353
29-Feb-00 29,859 13,228
31-Mar-00 26,777 12,356
30-Apr-00 22,699 11,612
AVERAGE ANNUAL RETURNS FOR PERIODS ENDED 4/30/00
1 YEAR SINCE INCEPTION (9/24/97)
------------------------------------
84.92% 37.09%
ANNUAL RETURNS TOP TEN HOLDINGS
9/24/97-10/31/97* -4.06% TeleTech Holdings, Inc. ................ 7.2%
11/01/97-10/31/98 -7.29% Anaren Microwave, Inc. ................. 5.9%
11/01/98-10/31/99 +84.60% Arthrocare Corp. ....................... 3.3%
11/01/99-4/30/00* +38.23% Netopia, Inc. .......................... 3.1%
Calpine Corp. .......................... 3.1%
Cabletron Systems ...................... 2.6%
Guess?, Inc. ........................... 2.5%
Rent-Way, Inc. ......................... 2.5%
Copper Mountain Networks, Inc. ......... 2.3%
Penton Media, Inc. ..................... 2.3%
TOTAL .......................... 34.8%
*Unannualized (1) Assumes initial investment of $10,000 on inception date,
Spetember 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. The returns shown were achieved during a
period of generally rising market values, especially in the technology sector.
In addition a significant portion of the Fund's performance can be attributed to
investments in Initial Public Offerings (IPOs). Investors should not expect that
such favorable returns can be achieved consistently. Past performance does not
guarantee future results. Share price and return will vary so that your shares
when redeemed may be worth more or less than their original value. All
performance figures assume the reinvestment of all dividends and capital gains.
Investments in newly emerging companies are subject to erratic earning patterns,
competitive conditions within the industry, limited earnings history and the
reliance on one or a limited number of products. Unlike the Fremont U.S. Small
Cap Fund, the Russell 2000, an index of small capitalization U.S. equities is
not available for investment and does not incur expenses.
10 and 11 FREMONT MUTUAL FUNDS
<PAGE>
--------------------------------------------------------------------------------
FREMONT GROWTH FUND
--------------------------------------------------------------------------------
W. Kent Copa, Debra McNeill,
and Peter Landini
Fremont Investment Advisors, Inc.
[PHOTO]
W. Kent Copa, CFA
------------
FUND PROFILE
------------
The Fremont Growth Fund invests principally in large capitalization U.S. stocks.
The goal is to outperform the Standand & 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 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
43 years of professional investment experience.
To Our Shareholders,
For the six month period ended April 30, 2000, the Fremont Growth Fund
returned 7.11% compared to the Standard & Poor's 500 Index's 7.21% and the
Lipper Large Cap Value Fund Average's 2.44% respective gains. We are pleased the
Fund delivered solid absolute returns and favorable results versus our peer
group benchmark during this reporting period. The S&P 500 edged us by the
slimmest of margins--in our opinion, the result of still relatively narrow
market leadership and the absence of any valuation perspective in some of the
top performing stocks in the Index.
Our Lipper peer group benchmark has changed. Lipper Analytical Services has
sub-divided its former all-encompassing large cap growth fund category into
three new peer group indices: Growth, Value, and Core. The Fund has been
assigned to the Lipper Large Cap Value Fund category--a reflection of the fact
that we don't like to overpay for growth. Our investment approach hasn't
changed. Our methodology is designed to build a portfolio with a higher earnings
growth rate and a lower price/earnings multiple than the S&P 500. That is
precisely what we have done. At the close of this reporting period, the
portfolio's annualized 5 year projected earnings growth rate is 19.80% versus
the S&P 500's 18.88%, and its price/earnings ratio is 24.3 compared to the S&P's
28.7. Over the long term, we believe faster growth at a cheaper price will
translate into superior performance.
During the first four months of this reporting period, our technology
holdings excelled. They also held up remarkably well in the March/April
correction compared to the "dot com" companies, whose bubble burst as investors
finally began questioning sky high valuations for companies with no profits. We
sense that day traders, who care little about earnings or fundamentals of any
description, are chasing themselves out of the market, leaving the future of
technology stocks in the hands of more seasoned and rational institutional
investors. We believe high quality technology companies that meet earnings
growth expectations will continue to be stock market leaders.
The Fund's best performance relative to corresponding S&P industry group
categories came from our capital goods and utilities holdings. Our financial
services investments were a drag on performance. Our limited positions in the
basic materials sector also disappointed.
Investment pundits have separated stocks into two categories: "old economy"
prey and "new economy" predators. There is really a third category of stocks in
the market. "Old economy" companies that change with the times--the proverbial
old dogs who learn new tricks. Corning is a great example.
Corning was on the cutting edge back in 1851 when it supplied Thomas Edison
with the glass for his first light bulb. Then came a new technological
development for Corning, the introduction of the television tubes. Post WWII,
Corning targeted another growth area with freezer-to-oven cookware. Over the
last 10 years Corning has repositioned itself to become one of the major players
in the telecommunications revolution. Corning was on the leading edge of the
optical network market nearly 10 years ago and is now positioned to profit from
the highest growth sectors of this market. For example, Corning is one of just
three manufacturers of Erbium Doped Fibre Amplifiers--the instruments that
continually recharge the light signals carried over long-haul fiber optic
networks. With estimated revenues of $930m in 1999, this market was twice the
size of any of the other component markets except source lasers. Corning also
has one of the three dominant technologies in optical switching whereby messages
(data, etc.) can be routed optically rather than converting the message to
electricity and then back to light.
Corning's earnings are expected to increase from $1.92 per share in 1999 to
$2.75 this year and $3.37 in 2001. With a P/E of more than 70 times year 2000
projected earnings, Corning is no longer a steal. But, in view of its strong
position in the fastest growth sectors of the telecommunications technology
market and the valuations of other leaders in this industry--J.D.S. Uniphase
currently trades at 270 times year 2000 earnings projections--Corning qualifies
as reasonably good value.
In closing, we are pleased with the Fund's return during this reporting
period. The portfolio has the fundamental characteristics we believe will
translate into superior long-term performance versus the S&P500 and our peer
group. Leading mutual fund monitoring company Morningstar appears to agree, as
is evidenced by the Fund's four star ranking.
Sincerely,
/s/ Kent Copa /s/ Deborah McNeil
/s/ Pete Landini
Kent Copa, Deborah McNeil,
& Pete Landini
Portfolio Co-Managers
--------------------------------------------------------------------------------
FREMONT GROWTH FUND
SECTOR DIVERSIFICATION
AS OF 4/30/00
--------------------------------------------------------------------------------
[GRAPHIC OMITTED]
FINANCIAL SERVICES (14.5%)
CASH (6.1%)
OTHER (6.0%)
BUSINESS EQUIPMENT & SERVICES (4.3%)
CONSUMER NON-DURABLES (4.5%)
CAPITAL GOODS (4.9%)
TECHNOLOGY (COMPONENTS) (6.2%)
RETAIL (6.6%)
ENERGY (6.6%)
HEALTH CARE (7.9%)
TECHNOLOGY (SOFTWARE) (9.9%)
TECHNOLOGY (EQUIPMENT) (10.2%)
UTILITIES (12.3%)
--------------------------------------------------------------------------------
GROWTH OF $10,000 (1)
[GRAPHIC OMITTED]
FREMONT GROWTH S&P 500
FUND INDEX
---- -----
14-Aug-92 10,000 10,000
31-Aug-92 9,899 9,873
30-Sep-92 10,091 9,987
31-Oct-92 10,200 10,023
30-Nov-92 10,655 10,361
31-Dec-92 10,822 10,495
31-Jan-93 10,954 10,572
28-Feb-93 10,843 10,716
31-Mar-93 11,005 10,947
30-Apr-93 10,609 10,679
31-May-93 10,863 10,964
30-Jun-93 10,945 11,000
31-Jul-93 10,935 10,946
31-Aug-93 11,302 11,359
30-Sep-93 11,414 11,276
31-Oct-93 11,506 11,507
30-Nov-93 11,270 11,404
31-Dec-93 11,516 11,544
31-Jan-94 11,907 11,932
28-Feb-94 11,536 11,608
31-Mar-94 10,929 11,104
30-Apr-94 11,052 11,248
31-May-94 11,093 11,432
30-Jun-94 10,722 11,149
31-Jul-94 11,155 11,518
31-Aug-94 11,724 11,986
30-Sep-94 11,476 11,696
31-Oct-94 11,704 11,965
30-Nov-94 11,335 11,526
31-Dec-94 11,563 11,695
31-Jan-95 11,609 11,998
28-Feb-95 11,987 12,463
31-Mar-95 12,307 12,832
30-Apr-95 12,570 13,210
31-May-95 12,982 13,733
30-Jun-95 13,622 14,056
31-Jul-95 14,228 14,524
31-Aug-95 14,423 14,558
30-Sep-95 14,983 15,164
31-Oct-95 14,995 15,122
30-Nov-95 15,477 15,787
31-Dec-95 15,449 16,079
31-Jan-96 15,898 16,633
29-Feb-96 16,092 16,793
31-Mar-96 16,032 16,954
30-Apr-96 16,517 17,204
31-May-96 17,087 17,647
30-Jun-96 17,184 17,714
31-Jul-96 16,347 16,932
31-Aug-96 16,638 17,289
30-Sep-96 17,852 18,262
31-Oct-96 18,303 18,766
30-Nov-96 19,631 20,184
31-Dec-96 19,326 19,784
31-Jan-97 20,204 21,021
28-Feb-97 20,326 21,185
31-Mar-97 19,614 20,314
30-Apr-97 20,341 21,527
31-May-97 21,507 22,838
30-Jun-97 22,279 23,861
31-Jul-97 24,218 25,760
31-Aug-97 23,218 24,317
30-Sep-97 24,521 25,648
31-Oct-97 23,658 24,792
30-Nov-97 24,448 25,939
31-Dec-97 24,923 26,385
31-Jan-98 24,535 26,677
28-Feb-98 26,247 28,601
31-Mar-98 27,426 30,065
30-Apr-98 27,749 30,368
31-May-98 27,281 29,846
30-Jun-98 27,313 31,058
31-Jul-98 26,602 30,727
31-Aug-98 21,870 26,285
30-Sep-98 23,646 27,968
31-Oct-98 25,384 30,243
30-Nov-98 26,917 32,076
31-Dec-98 28,879 33,925
31-Jan-99 30,234 35,343
28-Feb-99 29,030 34,244
31-Mar-99 29,801 35,614
30-Apr-99 30,798 36,993
31-May-99 30,046 36,119
30-Jun-99 32,134 38,124
31-Jul-99 30,817 36,934
31-Aug-99 30,535 36,750
30-Sep-99 29,782 35,743
31-Oct-99 31,538 38,005
30-Nov-99 31,919 38,780
31-Dec-99 33,845 41,064
31-Jan-00 31,871 39,003
29-Feb-00 31,511 38,265
31-Mar-00 34,821 42,008
30-Apr-00 33,781 40,743
AVERAGE ANNUAL RETURNS FOR PERIODS ENDED 4/30/00
1 YEAR 5 YEARS SINCE INCEPTION (8/14/92)
------------------------------------------------
9.69% 21.85% 17.10%
ANNUAL RETURNS TOP TEN HOLDINGS
8/14/92-10/31/92* +2.00% General Electric Co. ................... 3.9%
11/01/92-10/31/93 +12.80% Cisco Systems, Inc. .................... 3.6%
11/01/93-10/31/94 +1.72% Intel Corp. ............................ 3.5%
11/01/94-10/31/95 +28.12% Exxon Mobil Corp. ...................... 3.3%
11/01/95-10/31/96 +22.06% Microsoft Corp. ........................ 2.8%
11/01/96-10/31/97 +29.26% Citigroup, Inc. ........................ 2.1%
11/01/97-10/31/98 +7.30% Ford Motor Co. ......................... 2.0%
11/01/98-10/31/99 +24.24% Wal-Mart Stores, Inc. .................. 2.0%
11/01/99-4/30/00* +7.11% Texas Utilities Co. .................... 2.0%
Oracle Corp. ........................... 1.8%
TOTAL .......................... 27.0%
*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.
12 and 13 FREMONT MUTUAL FUNDS
<PAGE>
--------------------------------------------------------------------------------
FREMONT REAL ESTATE SECURITIES FUND
--------------------------------------------------------------------------------
Portfolio Co-Managers
John Kramer and Paul Gray
Sub-Advisor Kensington
Investment Group
[PHOTO]
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 the
company's 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, 2000, the Fremont Real Estate Fund
returned 6.97%, compared to the National Association of Real Estate Investment
Trusts (NAREIT) Composite Index's 9.89% gain. We are pleased the Fund delivered
solid returns during this reporting period and not particularly surprised it
modestly underperformed the benchmark NAREIT Index. In the early stages of a
rally, money tends to flow to the larger cap real estate securities that have
the greatest impact on the performance of the capitalization weighted NAREIT.
Eventually, investors looking for better value and higher yields gravitate to
the smaller real estate companies we favor.
Much of the Fund's progress came in the last two months of this reporting
period. The real estate securities rally was sparked by investors rotating out
of richly priced technology stocks and into value and yield oriented market
sectors. Since the Nasdaq Index peaked on March 10, it is down about 30% while
REITs are up about 10%.
The last few real estate securities rallies have been shortlived, but we
believe this one has some staying power. Why? First and foremost, after a bear
market in real estate securities that stretched from September 1997 through
December 1999, the group is substantially undervalued. For only the third time
since 1991, REITs are trading at a discount to underlying property values. The
average dividend yield is around 7%, relatively high by historical standards and
well above the yields offered in any other equities sector. Dividends are well
covered by cash flow. Average annual dividend growth of about 5% should
accelerate as more real estate companies bump up against minimum pay-out
requirements (REITs must pay out 95% of taxable income in dividends).
More importantly, we believe investors are beginning to recognize that with
more efficient public capital markets controlling an increasing amount of the
cash available to the real estate industry, the mistakes of the past--primarily
overbuilding during good times--are much less likely to be repeated. We could
see real estate securities retreat temporarily if tech stocks get hot again and
siphon money out of value sectors of the market. But, longer term, we believe
they are poised to deliver attractive annualized returns.
The relative health of the real estate industry is a function of supply and
demand. The economy is currently growing at about 6% annually and demand for
space is strong. With interest rates rising, already limited supply may be
further constrained as higher interest rates discourage construction borrowing.
In 2000, we expect a 3% increase in new inventory to be easily absorbed by the
strong U.S. economic growth. With the Fed pumping the monetary brakes, economic
growth will likely moderate. However, barring a real economic slump, real estate
should continue to enjoy a favorable supply/demand balance.
The Fund holds interests in a number of companies which we describe as
"event driven situations." These are REITs which are trading at significant
discounts to our estimate of the value of their property portfolios and are
candidates for acquisition or liquidation. We believe several of these companies
will be snapped up by other real estate companies or management led leveraged
buyout groups, producing solid profits for the portfolio.
Banyan Strategic Realty provides an example of an event driven situation.
This Chicago-based owner of office and office/industrial properties is a
micro-cap REIT with a market capitalization of just $78 million. We estimate
Banyan's properties are worth in excess of $8 per share, over 30% more than the
stock's recent trading price. Although earnings growth is positive and Banyan
currently has an attractive 8% yield, the real story here is that two activist
shareholders (who together own 36% of the shares and equivalents outstanding)
are busy reviewing options which we believe will result in a sale or merger of
the company. We expect such a transaction will be completed within the next
12-18 months.
In closing, since its inception the Fund has been operating in a very
challenging environment for real estate investing. We think the tide has turned
and are pleased to have achieved solid gains in first half fiscal 2000. We are
dedicated to building on this success going forward.
Sincerely,
/s/ John Kramer /s/ Paul Gray
John Kramer and Paul Gray
Portfolio Co-Managers
--------------------------------------------------------------------------------
FREMONT REAL ESTATE SECURITIES FUND
SECTOR DIVERSIFICATION
AS OF 04/30/00
--------------------------------------------------------------------------------
[GRAPHIC OMITTED]
SHORT-TERM SECURITIES (1.5%)
OTHER (21.7%)
NON REIT (SHELTER) (6.4%)
REIT (APARTMENTS) (7.8%)
REIT (OFFICE/INDUSTRIAL) (10.1%)
REIT (COMMUNITY CENTERS) (11.4%)
REIT (OFFICE) (41.1%)
--------------------------------------------------------------------------------
GROWTH OF $10,000 (1)
[GRAPHIC OMITTED]
FREMONT REAL
ESTATE SECURITIES NAREIT ALL
FUND INDEX
---- -----
31-Dec-97 10,000 10,000
31-Jan-98 9,940 9,953
28-Feb-98 9,910 9,784
31-Mar-98 10,180 9,945
30-Apr-98 9,940 9,626
31-May-98 9,760 9,544
30-Jun-98 9,640 9,485
31-Jul-98 9,200 8,863
31-Aug-98 8,210 7,945
30-Sep-98 8,510 8,450
31-Oct-98 8,122 8,220
30-Nov-98 8,245 8,370
31-Dec-98 8,225 8,118
31-Jan-99 8,131 7,956
28-Feb-99 7,955 7,742
31-Mar-99 7,893 7,704
30-Apr-99 8,588 8,452
31-May-99 8,914 8,638
30-Jun-99 9,103 8,518
31-Jul-99 8,794 8,206
31-Aug-99 8,538 8,027
30-Sep-99 8,463 7,728
31-Oct-99 8,117 7,529
30-Nov-99 8,247 7,371
31-Dec-99 8,412 7,592
31-Jan-00 8,236 7,618
29-Feb-00 8,126 7,518
31-Mar-00 8,236 7,761
30-Apr-00 8,683 8,273
AVERAGE ANNUAL RETURNS FOR PERIODS ENDED 04/30/00
1 YEAR SINCE INCEPTION (12/31/97)
-------------------------------------
1.11% -5.88%
ANNUAL RETURNS TOP TEN HOLDINGS
12/31/97-10/31/98* -18.78% Banyan Strategic Realty Trust .......... 8.8%
11/01/98-10/31/99 -0.07% Koger Equity REIT ...................... 6.6%
11/01/99-4/30/00* +6.97% American Industrial Properties REIT .... 5.4%
Equity Residential Properties Trust .... 5.3%
Wellsford Real Properties, Inc. ........ 4.3%
Malan Realty Investors, Inc. ........... 4.0%
Brandywine Realty Trust ................ 4.0%
Burnham Pacific Properties, Inc. ....... 3.7%
Equity Office Properties Trust ......... 3.6%
Highwoods Properties, Inc. ............. 3.5%
TOTAL .......................... 49.2%
*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.
14 and 15 FREMONT MUTUAL FUNDS
<PAGE>
--------------------------------------------------------------------------------
FREMONT BOND FUND
--------------------------------------------------------------------------------
Bill Gross
Portfolio Manager
Founder & Managing Director
Pacific Investment Management
Company (PIMCO)
[PHOTO]
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.
Three main principles embody the Fund's investment philosophy: 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
their potential impact on long-term interest rate trends); Second, consistent
performance is achieved by avoiding extreme swings in portfolio
maturity/duration; and Lastly, emphasis is placed on adding value through the
analysis of traditional variables such as sector, coupon, and credit quality.
Portfolio Manager Bill Gross, founder and managing director of Pacific
Investment Management Company (PIMCO), has 29 years of professional fixed income
investment experience. In addition to serving as the sub-advisor to the Fremont
Bond Fund, PIMCO manages over $190 billion in fixed income investments for
institutional clients.
To Our Shareholders,
For the semi-annual period ending April 30, 2000, the Fremont Bond Fund
outperformed its benchmark: the Fund returned 2.45% versus 1.41% for the Lehman
Brothers Aggregate Index.
Perhaps the most compelling changes occurring during this period were the
four successive 25 basis point (0.25%) rate hikes by the Federal Reserve. While
Fed activity caused short-term Treasury yields to rise nearly 80 basis points,
the yield on 30-year Treasuries fell 20 basis points (closing the month of April
at 5.96%). The fall in Treasury bond yields was due to investor concern that the
government's debt buyback program would create a scarcity of long-term
Treasuries. Yields on longer maturity mortgages and corporate bonds did not fall
in line with Treasuries, and therefore underperformed for the period.
The Fed suggested that more rate hikes are likely in an effort to offset
inflationary imbalances in the economy, which are caused by increases in demand
exceeding the growth in potential supply. Those imbalances include the record
U.S. trade deficit, high corporate and individual debt levels and tight labor
markets. Strong equity and housing markets also represent a potential threat
because they create a wealth effect that fuels consumer demand. Still, actual
inflation remained relatively subdued. While effects of increased energy prices
showed up in higher headline consumer price inflation, the core rate outside of
energy and food costs was little changed.
Portfolio Recap
Maintaining average portfolio duration (a measure of price sensitivity to
changing interest rates) below benchmark was positive for performance as rates
rose. Also, our migration to longer maturity Treasuries was positive as
long-term Treasuries rallied and the yield curve inverted.
An overweight in mortgages detracted slightly from performance as increased
volatility pushed yield premiums wider. Our overweight in investment-grade
corporates helped performance due to a focus on higher quality, shorter-maturity
selections. Real return bonds outperformed like-duration Treasuries, adding to
performance, as long-term real yields fell.
A modest allocation to below-investment grade bonds was slightly negative
due to cash outflows from the sector (resulting from growing credit quality
concerns). Emerging market bonds enhanced returns amid stronger global growth
and higher commodity prices.
Outlook and Strategy
We expect U.S. growth to slow as higher interest rates curb growth in the
housing market and investment spending. European growth will pick up and
approach that of the U.S. due to a relatively accommodative monetary policy and
the weak euro. The Japanese economy will remain weak as highly stimulative
government spending programs show few signs of sparking sustainable expansion.
U.S. inflation will remain above last year's relatively low levels
following recent increases in commodity and import prices, but will moderate
later this year after the impact of higher oil prices has been realized.
European inflation will increase but remain below that of the U.S. because
Europe's expansion is in an earlier stage and its unused capacity is greater,
especially in the labor market.
Financial imbalances in the economy make portfolio quality critical to
portfolio composition. Japan is not the only country where mounting debt poses
risks. The U.S. is also vulnerable to higher interest rates and/or declining
asset prices because of financial imbalances. Non-U.S. investors may eventually
require higher rates to finance the record U.S. current account deficit. Current
high levels of consumer and corporate debt will be hard to sustain if the assets
backing the debt (stocks, for example) fall in value.
Avoiding adverse price performance arising from credit deterioration will
be critical for earning superior returns in this environment. Longer maturity
Treasuries, which will benefit from U.S. budget surpluses and debt buybacks, are
one alternative. Mortgages are another because they offer attractive yields
relative to Treasuries with little or no credit risk. GNMA mortgages, for
example, are backed by the "full faith and credit" of the U.S. government.
Corporate and emerging market bonds are most vulnerable to declines in credit
quality, though their attractive yields may compensate for the added risk. Among
developed non-U.S. markets, European and Japanese government bonds are likely to
lag Treasuries as European growth converges with the U.S. and concerns about
Japan's credit standing increase.
Sincerely,
/s/ Bill Gross
Bill Gross
Portfolio Manager
--------------------------------------------------------------------------------
FREMONT BOND FUND
PORTFOLIO CREDIT QUALITY
AS OF 4/30/00
--------------------------------------------------------------------------------
[GRAPHIC OMITTED]
AAA (63.2%)
AA (5.7%)
A (16.1%)
BBB (9.2%)
BB (4.6%)
B (1.2%)
--------------------------------------------------------------------------------
GROWTH OF $10,000 (1)
[GRAPHIC OMITTED]
LEHMAN BROS.
FREMONT AGGREGATE
BOND FUND BOND INDEX
--------- ----------
30-Apr-93 10,000 10,000
31-May-93 9,963 10,013
30-Jun-93 10,182 10,194
31-Jul-93 10,198 10,252
31-Aug-93 10,415 10,432
30-Sep-93 10,481 10,460
31-Oct-93 10,515 10,499
30-Nov-93 10,366 10,410
31-Dec-93 10,437 10,466
31-Jan-94 10,585 10,607
28-Feb-94 10,388 10,423
31-Mar-94 10,147 10,166
30-Apr-94 10,049 10,085
31-May-94 9,959 10,083
30-Jun-94 10,025 10,061
31-Jul-94 10,205 10,261
31-Aug-94 10,230 10,274
30-Sep-94 10,106 10,123
31-Oct-94 10,050 10,114
30-Nov-94 10,020 10,091
31-Dec-94 10,018 10,161
31-Jan-95 10,242 10,362
28-Feb-95 10,522 10,609
31-Mar-95 10,621 10,674
30-Apr-95 10,823 10,823
31-May-95 11,228 11,242
30-Jun-95 11,299 11,324
31-Jul-95 11,263 11,299
31-Aug-95 11,397 11,436
30-Sep-95 11,530 11,547
31-Oct-95 11,707 11,697
30-Nov-95 11,954 11,872
31-Dec-95 12,146 12,038
31-Jan-96 12,269 12,118
29-Feb-96 11,935 11,907
31-Mar-96 11,893 11,824
30-Apr-96 11,840 11,757
31-May-96 11,765 11,734
30-Jun-96 11,964 11,891
31-Jul-96 11,973 11,923
31-Aug-96 11,997 11,903
30-Sep-96 12,313 12,110
31-Oct-96 12,664 12,379
30-Nov-96 12,878 12,591
31-Dec-96 12,781 12,474
31-Jan-97 12,801 12,512
28-Feb-97 12,816 12,543
31-Mar-97 12,698 12,404
30-Apr-97 12,951 12,590
31-May-97 13,075 12,710
30-Jun-97 13,247 12,861
31-Jul-97 13,650 13,208
31-Aug-97 13,495 13,096
30-Sep-97 13,695 13,290
31-Oct-97 13,873 13,483
30-Nov-97 13,873 13,545
31-Dec-97 14,022 13,681
31-Jan-98 14,230 13,857
28-Feb-98 14,198 13,846
31-Mar-98 14,238 13,893
30-Apr-98 14,322 13,965
31-May-98 14,465 14,097
30-Jun-98 14,566 14,217
31-Jul-98 14,644 14,247
31-Aug-98 14,871 14,479
30-Sep-98 15,331 14,818
31-Oct-98 15,303 14,740
30-Nov-98 15,377 14,824
31-Dec-98 15,423 14,868
31-Jan-99 15,536 14,974
28-Feb-99 15,229 14,712
31-Mar-99 15,379 14,793
30-Apr-99 15,422 14,840
31-May-99 15,239 14,709
30-Jun-99 15,147 14,662
31-Jul-99 15,059 14,599
31-Aug-99 15,013 14,592
30-Sep-99 15,229 14,761
31-Oct-99 15,305 14,816
30-Nov-99 15,336 14,814
31-Dec-99 15,231 14,743
31-Jan-00 15,211 14,695
29-Feb-00 15,375 14,872
31-Mar-00 15,677 15,069
30-Apr-00 15,679 15,025
AVERAGE ANNUAL RETURNS FOR PERIODS ENDED 4/30/00
1 YEAR 5 YEARS SINCE INCEPTION (4/30/93)
------------------------------------------------
1.66% 7.69% 6.64%
ANNUAL RETURNS TOP TEN HOLDINGS
4/30/93-10/31/93* +5.15% 30-yr. U.S. Treasury Bond Futures,
11/01/93-10/31/94 -4.42% 104 Contracts, Exp. Jun. 2000 ....... 17.6%
11/01/94-10/31/95 +16.49% 30-yr U.S. Treasury Bond, 6.000%,
11/01/95-10/31/96 +8.18% 02/15/26 ............................ 6.0%
11/01/96-10/31/97 +9.54% GNMA CMO, 7.296%, 06/20/28 ............. 5.8%
11/01/97-10/31/98 +10.31% RFMSI CMO, 7.000%, 11/25/27 ............ 4.4%
11/01/98-10/31/99 +0.01% FHLMC CMO, 6.500%, 09/25/18 ............ 3.2%
11/01/99-4/30/00* +2.45% General Motors Acceptance Corp.,
5.750%, 11/10/03 .................... 3.0%
FNMA CMO, 7.200%, 05/25/23 ............. 2.9%
90-day Euro Dollar Futures,
95 Contracts, Exp. Mar. 2001 ........ 2.1%
WorldCom, Inc., 6.125%, 08/15/01 ....... 1.1%
GNMA II, 6.375%, 04/20/21 .............. 0.4%
TOTAL ........................... 46.5%
*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.
16 and 17 FREMONT MUTUAL FUNDS
<PAGE>
--------------------------------------------------------------------------------
FREMONT MONEY MARKET FUND
--------------------------------------------------------------------------------
Norman Gee
Portfolio Manager
Fremont Investment Advisors, Inc.
[PHOTO]
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, 2000, the Fremont Money Market
Fund returned 2.78% compared to the IBC Money Market First Tier Taxable
Average's 2.55%. We are pleased to report the Fremont Money Market Fund once
again finished in the top quartile of comparable funds in the IBC money market
fund universe.
As I write, five 25 basis point (0.25%) Federal Reserve rate hikes have yet
to slow down the fast track domestic economy. In fact, based on the last
reported numbers, Gross Domestic Product (GDP) growth is accelerating. While,
I've learned to take the government's economic reports with a few grains of
salt--they are generally revised substantially not too long after being
released--there is strong anecdotal evidence the economy continues to grow at a
rate that will inspire inflation fighting Federal Reserve Chairman Alan
Greenspan to keep pumping the monetary brakes. On a recent research swing
through the Southeast, the flights I took were mostly full. Construction crews
were working overtime in Miami, Memphis, and New Orleans, the local newspapers
were bulging with help wanted classifieds, and the shops and restaurants were
jammed with folks spending money. These are not signs the economy is slowing.
Currently, there is some speculation that a wobbly stock market may
restrain the Fed. I suspect that's wishful thinking. Although Chairman Greenspan
has clearly stated that the "wealth effect" of a rising stock market is
partially responsible for the economy's rapid expansion, I doubt the recent
market volatility will alter the Fed's course of measured 25 basis point rate
increases. If stocks really hit the skids, rate hikes may be put on hold.
However, there is no sign of panic yet, and unless and until there is, I expect
the Fed to continue to tighten the monetary screws. I am forecasting 25 basis
point rate hikes at the Fed's next two scheduled meetings, and then, perhaps a
brief respite later in the year to determine if more monetary discipline is
required.
In anticipation of higher short term interest rates, we have shortened the
Fund's weighted average maturity to 53 days, well below the 60-70 day weighted
average maturity the Fund maintained through most of fiscal 1999. By shortening
the portfolio's weighted average maturity, we increase the speed in which assets
are rolled over into higher yielding securities as short term interest rates
rise. We have also reshaped the portfolio, moving from a "barbell"
structure--heavy weightings on the short and long end of the maturity range--to
"staged" maturity structure spread out relatively evenly along the 1-90 day
money market maturity spectrum.
We continue to invest in special situation securities that provide a small,
but meaningful yield advantage. We recently purchased commercial paper from the
U.S. subsidiaries of two companies head-quartered in Belgium. Dexia, is a unique
private bank that helps finance government infrastructure projects and Solvay is
a blue chip chemical company. The Dexia paper yields two basis points and the
Solvay issue 5 basis points more than comparably rated commercial paper from
U.S. based companies. Why the yield bonus? Because these are companies not
widely known in the U.S. marketplace and, therefore, their commercial paper must
be priced more attractively to attract buyers. When investing in the paper of
U.S. subsidiaries of foreign corporations, we always investigate the credit
quality of parent companies as well as the issuing subsidiaries. Consequently, I
have scheduled another research trip to Europe to identify more of these kind of
opportunities.
In closing, with the Federal Reserve determined to slow the economy, we
expect money market yields to continue to trend higher in the year ahead.
Consequently, we have positioned the portfolio to take advantage of rising short
term interest rates. We will continue to focus on strategies that can enhance
the Fund's yield and keep it in the upper echelon of taxable money market funds.
Sincerely,
/s/ Norman Gee
Norman Gee
Senior Portfolio Manager
--------------------------------------------------------------------------------
FREMONT MONEY MARKET FUND
GEOGRAPHIC DIVERSIFICATION
AS OF 4/30/00
--------------------------------------------------------------------------------
[GRAPHIC OMITTED]
OTHER (3%)
SWITZERLAND (3%)
CANADA (3%)
FRANCE (4%)
BELGIUM (6%)
JAPAN (9%)
GERMANY (9%)
UNITED KINGDOM (12%)
UNITED STATES (51%)
--------------------------------------------------------------------------------
GROWTH OF $10,000 (1)
[GRAPHIC OMITTED]
IBC FIRST
FREMONT MONEY 90-DAY U.S. TIER TAXABLE
MARKET FUND T-BILLS PRIME AVERAGE
----------- ------- -------------
18-Nov-88 10,000 10,000 10,000
30-Nov-88 10,027 10,026 10,025
31-Dec-88 10,096 10,093 10,090
31-Jan-89 10,170 10,163 10,159
28-Feb-89 10,237 10,236 10,228
31-Mar-89 10,315 10,311 10,300
30-Apr-89 10,389 10,383 10,377
31-May-89 10,475 10,457 10,452
30-Jun-89 10,552 10,526 10,528
31-Jul-89 10,630 10,592 10,600
31-Aug-89 10,705 10,661 10,670
30-Sep-89 10,775 10,731 10,741
31-Oct-89 10,852 10,813 10,812
30-Nov-89 10,924 10,887 10,881
31-Dec-89 10,993 10,955 10,949
31-Jan-90 11,067 11,027 11,017
28-Feb-90 11,132 11,093 11,084
31-Mar-90 11,202 11,168 11,152
30-Apr-90 11,276 11,240 11,221
31-May-90 11,350 11,317 11,291
30-Jun-90 11,420 11,390 11,360
31-Jul-90 11,498 11,465 11,429
31-Aug-90 11,573 11,540 11,498
30-Sep-90 11,640 11,610 11,567
31-Oct-90 11,719 11,682 11,636
30-Nov-90 11,792 11,751 11,704
31-Dec-90 11,867 11,821 11,773
31-Jan-91 11,941 11,888 11,839
28-Feb-91 12,005 11,946 11,901
31-Mar-91 12,065 12,008 11,959
30-Apr-91 12,134 12,066 12,015
31-May-91 12,195 12,124 12,068
30-Jun-91 12,249 12,180 12,121
31-Jul-91 12,312 12,238 12,174
31-Aug-91 12,369 12,296 12,227
30-Sep-91 12,427 12,350 12,278
31-Oct-91 12,482 12,404 12,328
30-Nov-91 12,531 12,454 12,375
31-Dec-91 12,584 12,500 12,422
31-Jan-92 12,630 12,543 12,464
29-Feb-92 12,668 12,582 12,502
31-Mar-92 12,708 12,625 12,540
30-Apr-92 12,744 12,666 12,576
31-May-92 12,779 12,707 12,612
30-Jun-92 12,817 12,745 12,647
31-Jul-92 12,852 12,784 12,680
31-Aug-92 12,885 12,819 12,711
30-Sep-92 12,917 12,852 12,741
31-Oct-92 12,947 12,884 12,769
30-Nov-92 12,978 12,916 12,798
31-Dec-92 13,008 12,951 12,828
31-Jan-93 13,036 12,986 12,857
28-Feb-93 13,062 13,016 12,885
31-Mar-93 13,093 13,048 12,912
30-Apr-93 13,122 13,080 12,939
31-May-93 13,148 13,113 12,967
30-Jun-93 13,178 13,147 12,994
31-Jul-93 13,208 13,181 13,021
31-Aug-93 13,235 13,215 13,049
30-Sep-93 13,263 13,248 13,076
31-Oct-93 13,291 13,282 13,104
30-Nov-93 13,320 13,315 13,132
31-Dec-93 13,351 13,351 13,161
31-Jan-94 13,379 13,385 13,189
28-Feb-94 13,406 13,418 13,218
31-Mar-94 13,437 13,455 13,248
30-Apr-94 13,470 13,496 13,281
31-May-94 13,512 13,540 13,317
30-Jun-94 13,556 13,586 13,356
31-Jul-94 13,603 13,636 13,397
31-Aug-94 13,651 13,687 13,439
30-Sep-94 13,701 13,737 13,485
31-Oct-94 13,755 13,794 13,532
30-Nov-94 13,812 13,852 13,582
31-Dec-94 13,880 13,915 13,636
31-Jan-95 13,943 13,979 13,694
28-Feb-95 14,006 14,041 13,754
31-Mar-95 14,081 14,110 13,816
30-Apr-95 14,145 14,177 13,877
31-May-95 14,216 14,247 13,939
30-Jun-95 14,289 14,314 14,000
31-Jul-95 14,355 14,384 14,060
31-Aug-95 14,423 14,452 14,120
30-Sep-95 14,492 14,517 14,180
31-Oct-95 14,558 14,583 14,239
30-Nov-95 14,624 14,652 14,299
31-Dec-95 14,695 14,732 14,359
31-Jan-96 14,760 14,800 14,418
29-Feb-96 14,821 14,859 14,474
31-Mar-96 14,885 14,913 14,529
30-Apr-96 14,947 14,977 14,584
31-May-96 15,015 15,043 14,640
30-Jun-96 15,073 15,105 14,695
31-Jul-96 15,139 15,173 14,752
31-Aug-96 15,209 15,242 14,809
30-Sep-96 15,269 15,313 14,867
31-Oct-96 15,336 15,379 14,929
30-Nov-96 15,403 15,444 14,987
31-Dec-96 15,470 15,513 15,045
31-Jan-97 15,540 15,584 15,104
28-Feb-97 15,602 15,644 15,162
31-Mar-97 15,666 15,710 15,221
30-Apr-97 15,734 15,785 15,286
31-May-97 15,808 15,866 15,347
30-Jun-97 15,875 15,925 15,409
31-Jul-97 15,948 15,996 15,471
31-Aug-97 16,022 16,064 15,533
30-Sep-97 16,089 16,138 15,595
31-Oct-97 16,162 16,207 15,658
30-Nov-97 16,233 16,270 15,721
31-Dec-97 16,311 16,340 15,786
31-Jan-98 16,386 16,416 15,850
28-Feb-98 16,453 16,474 15,919
31-Mar-98 16,525 16,552 15,983
30-Apr-98 16,596 16,627 16,047
31-May-98 16,670 16,696 16,111
30-Jun-98 16,743 16,766 16,176
31-Jul-98 16,823 16,840 16,240
31-Aug-98 16,894 16,917 16,305
30-Sep-98 16,968 17,003 16,371
31-Oct-98 17,043 17,070 16,434
30-Nov-98 17,114 17,127 16,500
31-Dec-98 17,193 17,195 16,561
31-Jan-99 17,258 17,256 16,621
28-Feb-99 17,321 17,305 16,679
31-Mar-99 17,388 17,376 16,736
30-Apr-99 17,453 17,439 16,794
31-May-99 17,520 17,507 16,852
30-Jun-99 17,586 17,580 16,910
31-Jul-99 17,658 17,652 16,970
31-Aug-99 17,727 17,723 17,032
30-Sep-99 17,799 17,806 17,096
31-Oct-99 17,877 17,876 17,162
30-Nov-99 17,954 17,948 17,231
31-Dec-99 18,043 18,028 17,302
31-Jan-00 18,122 18,106 17,374
29-Feb-00 18,203 18,185 17,447
31-Mar-00 18,295 18,280 17,521
30-Apr-00 18,374 18,365 17,521
AVERAGE ANNUAL RETURNS FOR PERIODS ENDED 4/30/00
1 YEAR 5 YEARS 10 YEARS SINCE INCEPTION (11/18/88)
--------------------------------------------------------------
5.27% 5.37% 5.00% 5.46%
ANNUAL RETURNS TOP TEN HOLDINGS
11/18/88-10/31/89* +8.52% Federal Home Loan Bank, AN ............. 1.5%
11/01/89-10/31/90 +7.99% Deutsche Bank NY, YCD .................. 1.5%
11/01/90-10/31/91 +6.51% Federal National Mortgage
11/01/91-10/31/92 +3.73% Association, AN ..................... 1.5%
11/01/92-10/31/93 +2.66% France Telecom ......................... 1.5%
11/01/93-10/31/94 +3.49% Queens Health Systems .................. 1.5%
11/01/94-10/31/95 +5.84% Federal Home Loan Bank, AN ............. 1.5%
11/01/95-10/31/96 +5.34% British Columbia Province .............. 1.5%
11/01/96-10/31/97 +5.39% Solvay Finance ......................... 1.5%
11/01/97-10/31/98 +5.45% Halifax PLC ............................ 1.5%
11/01/98-10/31/99 +4.89% Toyota Credit de Puerto Rico Corp. ..... 1.5%
11/01/99-4/30/00* +2.78% TOTAL .......................... 15.0%
*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.
18 and 19 FREMONT MUTUAL FUNDS
<PAGE>
--------------------------------------------------------------------------------
FREMONT CALIFORNIA
INTERMEDIATE TAX-FREE FUND
--------------------------------------------------------------------------------
Arno A. Rayner & William C. Williams
Portfolio Co-Managers
Rayner Associates, Inc.
[PHOTO]
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 1977, sub-advisor Rayner Associates, Inc. manages over $141 million
in fixed income assets for private clients.
To Our Shareholders,
In the six month period ended April 30, 2000, the Fremont California
Intermediate Tax Free Fund returned 2.03% compared to the Lehman Brothers
Municipal 5-Year State General Obligation (GO) Index's 1.15% gain.
After a poor showing in 1999, municipal bonds rebounded in first half
fiscal 2000. Last year, municipal bond issuers rushed new debt to market as
interest rates were rising. Investors, who were in the process of abandoning
bonds for stocks, were not very receptive. New issues were "priced to move",
dragging down the rest of the municipal securities market. In mid-January, 2000,
market interest rates stabilized and reduced supply in the municipal bond market
came more in line with demand. In early February, as interest rates started to
decline, muni bonds rallied, bringing the yield of the Bond Buyer 20-Year Index
down from 6.0% at the end of calendar 1999 to 5.74% at the close of this
reporting period.
There are four factors that lead us to believe the municipal bond rally
will have some legs. First, supply remains limited, with fewer new issues and
more refundings. Second, volatility in the stock market has helped stem the
outflow of capital from the bond market. Third, tax season is now over. Selling
of securities to pay taxes has ended, and the pain of large tax bills reminds
investors of the tax exempt advantage of municipal bonds. This has traditionally
been the "buying season" for municipal securities. Finally, municipal bonds are
priced attractively relative to Treasuries. Municipal bond yields are now at
approximately 97% of the yields of Treasury bonds versus the historical average
of 84% to 86% of Treasury yields. So, municipal bonds now enjoy an even greater
after-tax advantage over Treasuries.
The California economy remains robust. Gross State Product (GSP) growth is
projected to be around 3.5% in 2000. New job creation is forecast at about
400,000 for the year. Unemployment has continued to decline. In January 2000,
the unemployment rate came in at 4.7%. This is 0.9% lower than January 1999's
5.6%. With the exception of agriculture, virtually all economic sectors are
performing well. Home construction and export activity to a recovering Asia are
particularly strong.
Tax receipts are up, and the state budget surplus is expected to exceed $3
billion by the end of June. Unfortunately, once the political wrangling in
Sacramento over proposed spending programs for education and infrastructure
concludes, much of this surplus will likely disappear. However, we don't think
this will have a negative impact on the credit quality of state and local
municipal debt.
There doesn't appear to be any political ground swell for state income tax
relief, and neither of the Presidential candidates is pounding the table very
hard for materially lower federal income taxes. This may not be good news for
California residents, who suffer from one of the highest combined state and
federal income tax rates in the country. But, it should be good news for
California municipal bonds, which currently offer an historically high after-tax
yield advantage over Treasuries.
We continue to employ the yield enhancing strategy of "swapping" lower
coupon bonds for higher coupon issues. For example, we recently sold $1 million
of Los Angeles Water and Power, 4.7%, 10/15/06 and used the proceeds to buy $1
million of Kings River Conservation District, 5.120%, 1/1/17. In the process, we
picked up 42 basis points in coupon rate and 95 basis points in yield. We offset
the capital gains from the sale of the former by taking a loss in one of our
older portfolio holdings, with the proceeds once again going to a higher coupon
alternative.
Our current portfolio allocation is approximately 60% general obligation
bonds, primarily issues from municipalities with strong and stable tax bases,
and 40% "essential service" (electric, water and sewer projects) revenue bonds.
The portfolio has a weighted maturity of 8.9 years and a rather conservative
duration (a standard measure of interest rate sensitivity) of 6.4 years. The
average coupon rate is 5.38%. AAA rated insured bonds represent 60% of portfolio
assets, and 84% of our portfolio holdings are rated AA or better. The portfolio
has an AA credit quality rating from Moody's and Standard & Poors.
In closing, we have enjoyed a much healthier municipal bond market during
this reporting period. For the reasons detailed earlier in this letter, we
believe municipal bonds will continue to perform relatively well.
Sincerely,
/s/ Arno A. Rayner /s/ William Williams
Arno A. Rayner & William Williams
Portfolio Co-Managers
--------------------------------------------------------------------------------
FREMONT CALIFORNIA INTERMEDIATE TAX-FREE FUND
PORTFOLIO CREDIT QUALITY
AS OF 4/30/00
--------------------------------------------------------------------------------
[GRAPHIC OMITTED]
AAA (58.4%)
AA (25.7%)
A (14.2%)
NOT RATED (1.7%)
--------------------------------------------------------------------------------
GROWTH OF $10,000 (1)
[GRAPHIC OMITTED]
FREMONT CALIFORNIA LEHMAN MUNI
INTERMEDIATE 5-YEAR STATE
TAX-FREE FUND G.O. INDEX
------------- ----------
16-Nov-90 10,000 10,000
30-Nov-90 10,064 10,067
31-Dec-90 10,105 10,102
31-Jan-91 10,273 10,250
28-Feb-91 10,364 10,340
31-Mar-91 10,370 10,313
30-Apr-91 10,467 10,456
31-May-91 10,530 10,508
30-Jun-91 10,496 10,493
31-Jul-91 10,603 10,598
31-Aug-91 10,737 10,731
30-Sep-91 10,881 10,860
31-Oct-91 10,936 10,945
30-Nov-91 10,953 10,979
31-Dec-91 11,187 11,226
31-Jan-92 11,218 11,246
29-Feb-92 11,222 11,253
31-Mar-92 11,188 11,211
30-Apr-92 11,270 11,306
31-May-92 11,373 11,413
30-Jun-92 11,535 11,572
31-Jul-92 11,871 11,876
31-Aug-92 11,747 11,787
30-Sep-92 11,831 11,862
31-Oct-92 11,741 11,821
30-Nov-92 11,906 11,962
31-Dec-92 12,004 12,049
31-Jan-93 12,155 12,180
28-Feb-93 12,518 12,495
31-Mar-93 12,325 12,357
30-Apr-93 12,434 12,432
31-May-93 12,460 12,475
30-Jun-93 12,666 12,641
31-Jul-93 12,629 12,642
31-Aug-93 12,889 12,817
30-Sep-93 13,069 12,915
31-Oct-93 13,076 12,930
30-Nov-93 12,964 12,899
31-Dec-93 13,198 13,078
31-Jan-94 13,354 13,202
28-Feb-94 13,007 12,943
31-Mar-94 12,664 12,653
30-Apr-94 12,717 12,779
31-May-94 12,795 12,854
30-Jun-94 12,714 12,820
31-Jul-94 12,915 12,954
31-Aug-94 12,945 13,016
30-Sep-94 12,765 12,920
31-Oct-94 12,561 12,847
30-Nov-94 12,354 12,750
31-Dec-94 12,552 12,866
31-Jan-95 12,830 13,001
28-Feb-95 13,208 13,195
31-Mar-95 13,356 13,323
30-Apr-95 13,382 13,356
31-May-95 13,745 13,646
30-Jun-95 13,652 13,665
31-Jul-95 13,771 13,856
31-Aug-95 13,920 13,979
30-Sep-95 13,978 14,023
31-Oct-95 14,165 14,081
30-Nov-95 14,313 14,204
31-Dec-95 14,421 14,285
31-Jan-96 14,583 14,464
29-Feb-96 14,519 14,412
31-Mar-96 14,326 14,326
30-Apr-96 14,330 14,299
31-May-96 14,313 14,280
30-Jun-96 14,394 14,366
31-Jul-96 14,575 14,470
31-Aug-96 14,557 14,489
30-Sep-96 14,665 14,589
31-Oct-96 14,820 14,732
30-Nov-96 15,044 14,941
31-Dec-96 15,005 14,906
31-Jan-97 15,013 14,944
28-Feb-97 15,110 15,050
31-Mar-97 14,973 14,879
30-Apr-97 15,046 14,938
31-May-97 15,279 15,119
30-Jun-97 15,408 15,245
31-Jul-97 15,738 15,498
31-Aug-97 15,616 15,422
30-Sep-97 15,787 15,568
31-Oct-97 15,820 15,662
30-Nov-97 15,894 15,706
31-Dec-97 16,096 15,853
31-Jan-98 16,231 15,993
28-Feb-98 16,258 16,005
31-Mar-98 16,246 16,033
30-Apr-98 16,160 15,951
31-May-98 16,371 16,139
30-Jun-98 16,417 16,184
31-Jul-98 16,484 16,243
31-Aug-98 16,721 16,462
30-Sep-98 16,978 16,630
31-Oct-98 16,953 16,658
30-Nov-98 17,014 16,681
31-Dec-98 17,014 16,755
31-Jan-99 17,225 16,923
28-Feb-99 17,147 16,903
31-Mar-99 17,166 16,927
30-Apr-99 17,183 16,976
31-May-99 17,095 16,919
30-Jun-99 16,881 16,731
31-Jul-99 16,965 16,820
31-Aug-99 16,920 16,820
30-Sep-99 16,971 16,878
31-Oct-99 16,838 16,841
30-Nov-99 16,999 16,929
31-Dec-99 16,852 16,874
31-Jan-00 16,884 16,867
29-Feb-00 17,044 16,919
31-Mar-00 17,310 17,069
30-Apr-00 17,179 17,035
AVERAGE ANNUAL RETURNS FOR PERIODS ENDED 4/30/00
1 YEAR 5 YEARS SINCE INCEPTION (11/16/90)
-------------------------------------------------
-0.02% 5.12% 5.89%
ANNUAL RETURNS TOP TEN HOLDINGS
11/01/90-10/31/91* +9.36% Sacramento Municipal Utilities District 3.2%
11/01/91-10/31/92 +7.37% Yucaipa School Facilities
11/01/92-10/31/93 +11.37% Finance Authority ................... 2.6%
11/01/93-10/31/94 -3.94% City of L.A., Wastewater System ........ 2.5%
11/01/94-10/31/95 +12.77% East Bay Municipal Utility District .... 2.5%
11/01/95-10/31/96 +4.63% City of Industry,
11/01/96-10/31/97 +6.75% Urban Development Agency ............ 2.1%
11/01/97-10/31/98 +7.16% Orange County
11/01/98-10/31/99 -0.68% Transportation Authority ............ 1.8%
11/01/99-4/30/00* +2.03% Modesto Calif., Irrigation District .... 1.7%
City & County of San Francisco
(International Airport) ............. 1.7%
City & County of San Francisco (Sewer) . 1.7%
Santa Monica-Malibu
Unified School District ............. 1.7%
TOTAL ....................... 21.5%
*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.
20 and 21 FREMONT MUTUAL FUNDS
<PAGE>
FREMONT GLOBAL FUND
APRIL 30, 2000 (UNAUDITED)
STATEMENT OF INVESTMENTS IN SECURITIES AND NET ASSETS
Country Value
Shares Security Description Code (Note 1)
--------------------------------------------------------------------------------
STOCKS 49.5%
BUSINESS EQUIPMENT & SERVICES 4.9%
50 Flughafen Wien AG AS $ 1,603
6,400 Tele Centro Sul Participacoes SA BR 408,000
27,000 Nortel Network Corp. CN 3,051,857
40,700 Teleglobe, Inc. CN 1,016,813
125 Danisco AS DK 3,753
470 Tele Danmark AS DK 34,417
150 Metra Oyj (Class B) FI 2,441
940 Sonera Group Oyj FI 51,712
8,200 Alcatel FR 1,901,346
3,000 Canal Plus FR 578,315
* 7,400 Epcos AG GM 1,041,621
* 8,000 Epcos AG, ADR GM 1,122,500
1,000 SAP AG GM 469,199
700 SAP AG (Vorzug) GM 405,139
480 La Rinascente SPA IT 2,182
1,000 Kinden Corp. JP 6,239
103,000 Kyowa Exeo Corp. JP 898,139
* 6,000 Marubeni Corp. JP 17,384
2,000 Mitsubishi Logistics Corp. JP 17,217
4,000 Sumitomo Corp. JP 44,802
2,800 Trans Cosmos, Inc. JP 557,253
2,137 Getronics NV NL 127,473
614 Koninklijke KPN NV NL 61,889
102 Oce NV NL 1,363
120 Vedior NV NL 1,271
* 225 Merkantildata ASA NO 1,548
14,900 Philippine Long Distance Telephone Co. PH 267,070
205 Jeronimo Martins, SGPS, SA PT 3,657
572 Autopistas Concesionaria Espanola SA SP 5,045
200 Prosegur, CIA de Seguridad SA SP 2,331
300 Sociedad General de Aguas de Barcelona SA SP 4,397
160 WM-Data AB SW 5,619
55 Adecco SA SZ 45,181
* 3 Societe Generale de Surveillance
Holdings SA (Bearer Shares) SZ 4,668
* 5 Societe Generale de Surveillance
Holdings SA (Registered Shares) SZ 1,756
89,368 British Telecommunications PLC UK 1,593,287
35,512 Cable & Wireless PLC UK 587,859
138,235 Invensys PLC UK 664,471
52,200 Marconi PLC UK 649,908
70,000 Misys PLC UK 801,889
46,100 Rentokil Initial PLC UK 124,860
90,000 Serco Group PLC UK 650,495
* 17,000 ADC Telecommunications, Inc. US 1,032,750
* 27,000 America Online, Inc. US 1,614,937
* 10,000 AMFM, Inc. US 663,750
* 1,500 ArrowPoint Communications, Inc. US 147,000
* 3,000 Brocade Communications Systems, Inc. US 372,000
* 18,500 Ceridian Corp. US 401,218
* 23,800 Championship Auto Racing Teams, Inc. US 481,950
1,000 Cintas Corp. US 39,625
* 9,100 COMARCO, Inc. US 339,544
* 13,200 Computer Outsourcing Services, Inc. US 279,675
* 3,500 Computer Sciences Corp. US 285,468
* 10,000 Comverse Technology, Inc. US 891,875
* 8,100 Corporate Exec. Board Co. US 475,875
* 13,000 CoStar Group, Inc. US 311,797
BUSINESS EQUIPMENT & SERVICES (CONT.)
* 30,500 Dendrite International, Inc. US $ 697,687
* 1,000 DoubleClick, Inc. US 75,875
14,400 Elcor Corp. US 458,100
* 8,900 eLoyalty Corp. US 146,294
1,000 Equifax, Inc. US 24,437
* 1,700 Exodus Communications, Inc. US 150,344
* 13,500 Fiserv, Inc. US 620,156
* 2,000 i2 Technologies, Inc. US 258,500
* 400 infoUSA, Inc. US 2,325
* 5,800 Interep National Radio Sales, Inc. US 33,350
2,000 Interpublic Group of Companies, Inc. US 82,000
* 8,100 Leapnet, Inc. US 33,412
* 2,000 Media 100, Inc. US 48,375
* 15,900 Metawave Communications Corp. US 210,675
* 23,000 Modis Professional Services, Inc. US 173,937
* 5,200 NetCreations, Inc. US 178,100
* 17,000 Network Appliance, Inc. US 1,256,937
* 1,000 Network Solutions, Inc. US 148,000
* 8,000 Nova Corp. US 253,000
* 15,000 Nucentrix Broadband Networks, Inc. US 374,062
1,500 Omnicom Group, Inc. US 136,594
11,200 Oshkosh Truck Corp. US 352,800
1,850 Paychex, Inc. US 97,356
25,100 Penton Media, Inc. US 660,444
* 1,000 Robert Half International, Inc. US 61,125
* 17,700 Romac International, Inc. US 182,531
* 20,000 RSA Security, Inc. US 1,173,750
* 3,600 Sanchez Computer Associates US 69,750
* 15,900 ShopNow.com, Inc. US 101,362
* 4,700 Shuffle Master, Inc. US 58,162
* 18,300 Spectrum Control, Inc. US 184,144
* 5,300 Speedway Motorsports,Inc. US 126,869
* 21,300 Stamps.com, Inc. US 340,800
* 1,000 SunGard Data Systems, Inc. US 34,562
11,250 Symbol Technologies, Inc. US 627,187
* 20,600 TCI Satellite Entertainment, Inc. US 216,300
* 77,400 TeleTech Holdings, Inc. US 2,525,175
* 29,000 The Netplex Group, Inc. US 114,187
* 3,000 Unisys Corp. US 69,562
* 11,200 United Shipping and Technology, Inc. US 129,500
* 15,400 VTEL Corp. US 64,487
* 4,000 Waters Corp. US 379,000
* 7,000 Yahoo!, Inc. US 911,750
------------
38,418,396
------------
CAPITAL GOODS 2.7%
30 VA Technologie AG AS 1,786
120 Wienerberger Baust NPV AS 2,564
50 Bekaert NV BE 2,278
23,000 Bombardier, Inc. (Class B) CN 618,096
130 FLS Industries AS (Class B) DK 2,348
21 NKT Holding AS DK 2,691
60 Kone Corp (Class B) FI 3,437
350 Rautaruukki OY FI 1,782
200 Sampo Insurance Company Ltd. (Class A) FI 7,565
43 Sanitec Oyj FI 500
200 Valmet-Rauma Oyj FI 2,637
* 720 Bouygues SA FR 459,615
17,000 Ciments Francais FR 801,502
18,900 Siemens AG GM 2,749,723
The accompanying notes are a integral part of these financial statements.
22 FREMONT MUTUAL FUNDS
<PAGE>
FREMONT GLOBAL FUND
APRIL 30, 2000 (UNAUDITED)
STATEMENT OF INVESTMENTS IN SECURITIES AND NET ASSETS
Country Value
Shares Security Description Code (Note 1)
--------------------------------------------------------------------------------
CAPITAL GOODS (CONT.)
41,742 CRH PLC IR $ 668,025
360 Italcementi SPA IT 3,169
2,000 Amada Co. Ltd. JP 18,217
1,000 Daikin Industries Ltd. JP 19,022
2,000 Daiwa House Industry JP 13,330
4,000 Kajima Corp. JP 9,294
* 4,000 Kawasaki Heavy Industries Ltd. JP 4,480
4,000 Komatsu Ltd. JP 19,254
1,000 Koyo Seiko Co. Ltd. JP 6,943
8,000 Kubota Corp. JP 26,067
18,000 Mabuchi Motors Co. JP 1,982,783
2,000 Minebea Co. Ltd. JP 24,438
9,000 Mitsubishi Electric Corp. JP 76,895
87,000 Mitsubishi Heavy Industries JP 270,592
20,000 Murata Manufacturing Co. Ltd. JP 3,887,808
1,000 NGK Insulators Ltd. JP 9,210
1,000 Nishimatsu Construction Co. Ltd. JP 3,194
2,000 Obayashi Corp. JP 6,961
2,000 Shimizu Corp. JP 5,406
300 SMC Corp. JP 59,706
5,000 Taiheiyo Cement Corp. JP 7,128
13,000 Thk Co. Ltd. JP 547,533
* 93,584 Renong Berhad MY 63,784
* 155,000 Renong Berhad Warrants MY 49,355
* 130 Kvaerner ASA NO 1,599
180 Tomra Systems ASA NO 3,724
4,000 Sembcorp Industries Ltd. SG 4,218
345 Grupo Dragados SA SP 2,635
264 Zardoya Otis SA SP 2,168
130 Atlas Copco AB SW 2,980
265 Atlas Copco AB (Class A) SW 6,209
* 555 Sandvik AB (Class A) SW 13,374
335 SKF AB (Series B) SW 6,970
4,606 Abb Ltd. SZ 517,260
25 Georg Fischer AG SZ 7,177
2 Schindler Holding AG SZ 2,862
2 Schindler Holding AG (Registered Shares) SZ 2,855
10 Sulzer AG SZ 6,409
* 31,600 Aaon, Inc. US 663,600
* 33,100 Adept Technology, Inc. US 388,925
11,100 Boeing Co. US 440,531
4,000 Dover Corp. US 203,250
30,000 General Electric Co. US 4,717,500
* 30,400 IMPCO Technologies, Inc. US 615,600
85,000 Worthington Industries, Inc. US 1,051,875
* 11,700 Zygo Corp. US 298,350
------------
21,399,189
------------
CONSUMER DURABLES 2.8%
5,000 Michelin (Class B) FR 165,947
1,000 Peugeot SA FR 206,957
20,000 Renault SA FR 909,300
2,500 Valeo SA FR 138,668
2,000 DaimlerChrysler AG GM 117,118
798 Fiat SPA IT 19,570
13,221 Fiat SPA (Preferred) IT 193,551
170 Fiat SPA (RNC) IT 2,118
1,500 Magneti Marelli SPA IT 5,633
2,000 Casio Computer Co. Ltd. JP 22,031
2,000 Citizen Watch Co. Ltd. JP 14,996
CONSUMER DURABLES (CONT.)
* 3,000 Dainippon Screen Mfg. Co. Ltd JP $ 20,411
3,000 Denso Corp. JP 73,452
3,000 Honda Motor Co. Ltd. JP 134,129
700 Kyocera Corp. JP 117,088
* 44,000 Mitsubishi Motors JP 155,179
1,000 NGK Spark Plug Co. JP 10,590
2,900 Nintendo Co. Ltd. JP 483,199
* 77,000 Nissan Motor Co. Ltd. JP 349,967
1,000 Olympus Optical Co. Ltd. JP 16,403
1,000 Pioneer Electronic Corp. JP 27,307
10,600 Rohm Co. Ltd. JP 3,551,976
20,000 Shinko Electric Industries Co. Ltd. JP 942,331
* 21,700 Sony Corp. JP 2,492,798
* 21,700 Sony Corp. (New) JP 2,510,876
14,000 Suzuki Motor Co. Ltd. JP 208,516
1,000 Tostem Corp. JP 14,727
1,000 Toyo Seikan Kaisha Ltd. JP 17,680
12,000 Toyota Motor Corp. JP 596,501
1,000 Yamaha Corp. JP 6,776
3,000 Yokogawa Electric Corp. JP 22,910
29,156 Koninklijke (Royal) Philips Electronics NV NL 1,300,922
600 Fisher & Paykel Industries Ltd. NZ 1,777
1,000 Cycle & Carriage Ltd. SG 2,959
13,000 Hyandai Motor Company Ltd. SK 65,650
795 Electrolux AB SW 13,470
* 715 Securitas AB SW 18,551
300 Volvo AB (Class A) SW 7,029
660 Volvo AB (Class B) SW 16,054
50 S.M.H. AG (Registered Shares) SZ 11,292
10 The Swatch Group AG SZ 10,729
* 62,450 Ritek Corp., GDR TW 1,191,096
50,200 GKN PLC UK 692,891
27,600 Callaway Golf Co. US 458,850
6,000 Federal-Mogul Corp. US 81,375
36,500 Ford Motor Co. US 1,996,094
12,800 General Motors Corp. US 1,198,400
14,000 Harley-Davidson, Inc. US 557,375
* 35,300 Jore Corp. US 207,388
* 17,500 Spectra-Physics Lasers, Inc. US 892,500
------------
22,273,107
------------
CONSUMER NON-DURABLES 2.1%
45 Austria Tabak AG AS 1,587
75 Carlsberg AS (Class A) DK 2,270
60 Carlsberg AS (Class B) DK 1,853
400 Raisio Group PLC FI 1,018
700 Christian Dior SA FR 166,447
300 LVMH FR 125,920
4,500 Societe BIC SA FR 179,223
700 Greencore Group PLC IR 1,941
7,388 Kerry Group PLC IR 93,715
3,875 Benetton Group SPA IT 7,135
625 Bulgari SPA IT 6,820
400 Marzotto SPA IT 3,183
3,120 Parmalat Finanziaria SPA IT 3,260
2,000 Ajinomoto Co. JP 22,864
2,000 Asahi Breweries Ltd. JP 20,365
40,000 Kao Corp. JP 1,218,180
1,000 Katokichi Co. Ltd. JP 24,345
1,000 Kikkoman Corp. JP 6,683
The accompanying notes are a integral part of these financial statements.
FREMONT MUTUAL FUNDS 23
<PAGE>
FREMONT GLOBAL FUND
APRIL 30, 2000 (UNAUDITED)
STATEMENT OF INVESTMENTS IN SECURITIES AND NET ASSETS
Country Value
Shares Security Description Code (Note 1)
--------------------------------------------------------------------------------
CONSUMER NON-DURABLES (CONT.)
4,000 Kirin Brewery Co. Ltd. JP $ 52,097
2,000 Kuraray Co. Ltd. JP 16,440
2,000 Meiji Seika JP 13,052
2,000 Mitsubishi Rayon Co. Ltd. JP 5,239
1,000 Nippon Meat Packers, Inc. JP 12,635
3,000 Snow Brand Milk Products Co. Ltd. JP 11,663
1,000 Takara Shuzo Co. Ltd. JP 21,476
4,000 Teijin Ltd. JP 17,884
4,000 Toray Industries, Inc. JP 14,514
400 Uni-Charm Corp. JP 27,104
1,000 Yamazaki Baking Co. Ltd. JP 8,701
30,000 Coca-Cola Femsa SA de CV, ADR MX 556,875
80,000 Rothmans of Pall Mall (Malaysia) Berhad MY 621,044
29,200 Heineken NV NL 1,619,645
3,000 Heineken Holding NV-A NL 101,069
723 Unilever NV, CVA NL 32,845
371 Orkla ASA (Series A) NO 5,747
1,025 Lion Nathan Ltd. NZ 2,070
100 Unicer-Uniao Cervejeira SA (Registered Shares) PT 2,717
2,000 Fraser & Neave Ltd. SG 6,445
135 Azucarera Ebro Agricolas SA SP 1,785
* 200 SA El Aguila SP 1,466
390 Tabacalera SA SP 4,585
875 Swedish Match AB SW 2,613
* 875 Swedish Match AB Rights SW 0
400 Compagnie Financiere Richemont AG SZ 973,005
1,034 Nestle SA (Registered Shares) SZ 1,824,882
34,600 Cadbury Schweppes PLC UK 234,752
58,000 Caradon PLC UK 143,342
* 452,000 Coca-Cola Beverages PLC UK 822,002
17,000 Unilever PLC UK 101,468
13,000 Anheuser Busch Cos., Inc. US 917,313
24,000 Coca-Cola Enterprises, Inc. US 511,500
6,000 Colgate Palmolive Co. US 342,750
33,000 ConAgra, Inc. US 622,875
10,300 Eastman Kodak Co. US 576,156
7,000 Gillette Co. US 259,000
* 15,200 Guess?, Inc. US 418,000
* 275,400 Hanover Direct, Inc. US 481,950
17,000 Heinz (H.J.) & Co. US 578,000
* 27,100 McNaughton Apparel Group, Inc. US 232,044
* 30,400 NBTY, Inc. US 539,600
68,000 Philip Morris Cos., Inc. US 1,487,500
7,000 Procter & Gamble Co. US 417,375
2,000 SYSCO Corp. US 75,250
* 3,500 Tefron Ltd. US 53,594
4,500 The Estee Lauder Companies, Inc. US 198,563
------------
16,857,441
------------
CONSUMER SERVICES 1.6%
6,000 News Corp. Ltd., ADR AU 308,625
* 41,000 Cinar Corp. (Class B) CN 143,500
12,000 Thomson Corp. CN 396,219
115 Tieto Corp. FI 5,542
10,875 Hachette Filipacchi Medias FR 810,374
2,000,000 China Hong Kong Photo Products
Holdings Ltd. HK 210,548
1,500,000 Ng Fung Hong Ltd. HK 751,040
1,000 Television Broadcasts Ltd. HK 6,836
10,970 Independent Newspapers PLC IR 87,581
CONSUMER SERVICES (CONT.)
250 Jurys Hotel Group PLC IR $ 1,478
2,570 Mediaset SPA IT 41,714
280 Mondadori (Arnoldo) Editore SPA IT 6,772
300 Csk Corp. JP 11,525
3,000 Dai Nippon Printing Co. Ltd. JP 50,903
200 Namco Ltd. JP 8,164
22,000 Secom Co. JP 1,845,043
600 Sega Enterprises Ltd. JP 10,775
4,000 Toppan Printing Co. Ltd. JP 41,840
1,000 Societe Europeene des Satellites LU 154,581
400,000 Resorts World Berhad MY 1,294,720
15,893 Elsevier NV NL 154,631
* 2,500 United Pan-Europe Communications N.V. NL 90,998
24,352 Wolters Kluwer NV NL 574,839
200 Schibsted ASA NO 4,161
1,000 Singapore Press Holdings Ltd. SG 19,569
* 240 Sol Melia SA SP 2,933
1 Kuoni Reisen AG SZ 4,337
* 29,100 British Sky Broadcasting Group PLC UK 711,945
51,100 Reuters Group PLC UK 906,265
* 7,900 ACTV, Inc. US 143,188
* 10,000 Adelphia Communications Corp. US 495,625
* 24,900 American Classic Voyages Co. US 499,557
36,700 Cash America International, Inc. US 330,300
* 2,000 CNET Networks, Inc. US 69,125
* 28,300 Homeseekers.com, Inc. US 208,713
* 9,000 InfoSpace.com, Inc. US 646,313
* 11,800 Internet.com Corp. US 224,200
* 11,600 LoJack Corp. US 83,375
* 1,000 RealNetworks, Inc. US 47,625
9,000 Royal Caribbean Cruises Ltd. US 187,313
* 2,500 UnitedGlobalCom, Inc. US 132,813
* 3,500 Univision Communications, Inc. US 382,375
23,000 Wiley (John) & Sons (Class A) US 396,750
* 17,500 ZipLink, Inc. US 156,406
------------
12,661,136
------------
ENERGY 1.5%
55 OMV AG AS 4,519
3,000 Suncor Energy, Inc. CN 128,123
2,632 Total Fina Elf SA FR 397,284
* 2,632 Total Fina SA, Strip VVPR FR 24
92,395 ENI SPA IT 459,560
6,000 Nippon Mitsubishi Oil Corp. JP 20,772
2,700 Royal Dutch Petroleum Co. NL 155,654
4,485 Norsk Hydro ASA NO 164,279
* 180 Petroleum Geo-Services NO 2,818
200 Smedvig ASA NO 2,785
1,227 Fletcher Challenge Energy NZ 2,830
16,035 Repsol SA SP 328,064
* 20 Lonza AG SZ 9,800
49,600 BG Group PLC UK 299,131
163,852 BP Amoco PLC UK 1,412,218
19,700 Enterprise Oil PLC UK 145,754
41,000 Shell Transport & Trading Co. UK 334,574
11,000 Ameren Corp. US 403,563
24,000 Apache Corp. US 1,162,500
7,500 Devon Energy Corp. US 361,406
12,000 El Paso Energy Corp. US 510,000
9,000 EOG Resources, Inc. US 223,875
The accompanying notes are a integral part of these financial statements.
24 FREMONT MUTUAL FUNDS
<PAGE>
FREMONT GLOBAL FUND
APRIL 30, 2000 (UNAUDITED)
STATEMENT OF INVESTMENTS IN SECURITIES AND NET ASSETS
Country Value
Shares Security Description Code (Note 1)
--------------------------------------------------------------------------------
ENERGY (CONT.)
41,000 Exxon Mobil Corp. US $ 3,185,188
* 6,100 Nabors Industries, Inc. US 240,569
* 8,200 Noble Drilling Corp. US 327,488
17,000 Puget Sound Energy, Inc. US 403,750
2,000 Transocean Sedco Forex, Inc. US 94,000
42,000 USX-Marathon Group US 979,125
* 10,400 UTI Energy Corp. US 361,400
* 4,000 Weatherford International, Inc. US 162,500
------------
12,283,553
------------
FINANCIAL SERVICES (BANKS) 2.2%
245 Bank Austria AG AS 10,872
37,000 Australia & New Zealand Banking Group Ltd. AU 255,970
22,000 Westpac Banking Corp. Ltd. AU 140,501
645 Kredietbank NV BE 23,695
6,000 Uniao de Bancos Brasileiros SA, GDR BR 149,625
9,000 Bank Of Nova Scotia CN 205,098
25,600 The Toronto-Dominion Bank CN 592,033
115 Den Danske Bank DK 11,439
* 1,461 Nordic Baltic Holding AB DK 9,093
1,600 Banque Nationale de Paris (BNP) FR 129,339
* 15,000 Commerzbank AG GM 568,767
10,688 Deutsche Bank AG GM 717,232
4,200 Hang Seng Bank Ltd. HK 38,688
35,959 Allied Irish Banks PLC IR 358,864
60,000 Bank of Ireland IR 407,003
1,610 Banca Intesa SPA IT 3,250
575 Banca Popolare di Milano IT 3,430
5,035 Banco Intesa SPA IT 18,542
81,425 Instituto Bancario San Paolo di Torino IT 1,140,212
1,240 Mediobanca SPA IT 10,283
343,570 Unicredito Italiano SPA IT 1,393,341
9,000 Asahi Bank Ltd. JP 43,321
14,000 Bank of Tokyo-Mitsubishi Ltd. JP 180,654
5,000 Bank of Yokohama Ltd. JP 19,161
11,000 Fuji Bank Ltd. JP 91,641
8,000 Industrial Bank of Japan JP 65,908
4,000 Mitsubishi Trust & Banking Corp. JP 33,583
37,000 Sakura Bank Ltd. JP 259,613
10,000 Sumitomo Bank JP 125,058
2,000 The 77 Bank Ltd. JP 14,366
3,000 The Gunma Bank Ltd. JP 15,051
4,000 The Joyo Bank Ltd. JP 14,292
3,000 The Shizuoka Bank Ltd. JP 27,770
7,000 Tokai Bank Ltd. JP 36,416
22,122 ABN Amro Holding NV NL 455,617
1,340 Den Norske Bank ASA NO 4,706
2,150 Banco Comercial Portugues SA PT 10,088
255 Banco Espirito Santo E Comercial
De Lisboa SA PT 5,913
1,130 Bpi-sgps SA PT 3,678
19,163 DBS GROUP Holdings Ltd. SG 263,845
3,150 Oversea-Chinese Banking Corp. Ltd.
(Local Shares) SG 21,593
1,056 United Overseas Bank Ltd. (Local Shares) SG 7,363
2,800 Banco Bilbao Vizcaya Argentaria SA SP 40,600
67,158 Banco Bilbao Vizcaya SA SP 916,002
7,944 Banco Santander Central Hispano SA SP 82,853
14,497 ForeningSparbanken AB (Series A) SW 214,012
1,280 Skandinaviska Enskilda Banken SW 14,029
FINANCIAL SERVICES (BANKS) (CONT.)
1,410 Svenska Handelsbanken AB, (Class A) SW $ 18,686
210 Svenska Handelsbanken AB, (Class B) SW 2,701
875 Credit Suisse Group SZ 158,237
900 Ubs AG SZ 220,755
* 24,285 Thai Farmers Bank (Warrants 09/15/02) TH 2,935
74,000 Turkiye Is Bankasi (Isbank) TU 405,868
173,500 Lloyds TSB Group PLC UK 1,690,891
17,858 Royal Bank Of Scotland UK 277,714
24,600 Bank of America Corp. US 1,205,400
13,800 Bank One Corp. US 420,900
16,000 Capital One Financial Corp. US 700,000
18,000 Chase Manhattan Corp. US 1,297,126
2,000 Firstar Corp. US 49,750
26,000 MBNA Corp. US 690,625
16,000 PNC Bank Corp. US 698,000
9,000 TCF Financial Corp. US 210,375
18,000 Washington Mutual, Inc. US 460,125
2,500 Zions Bancorporation US 103,750
------------
17,768,248
------------
FINANCIAL SERVICES (OTHER) 3.0%
15 Generali Hldng Vienna AG AS 2,182
85,235 Lend Lease Corp. Ltd. AU 924,141
1,560 Fortis (Class B) BE 39,392
* 868 Fortis AG-CVG BE 5,920
50 Groupe Bruxelles Lambert SA BE 12,139
6,000 Clarica Life Ins Co. CN 117,893
* 1,000 Fairfax Financial Holdings Ltd. CN 124,916
11,000 Manulife Financial Corp. CN 172,687
45 Pohjola Group Insurance Corp. FI 2,238
40 Pohjola Insurance Group (Class A) FI 1,976
3,000 Allianz AG GM 1,126,622
60 Muenchener Rueckversich-CW02 GM 4,365
4,300 Muenchener Rueckversicherungs-
Gesellschaft AG GM 1,249,242
5,000 Cheung Kong (Holdings) Ltd. HK 59,698
7,000 New World Development Co. Ltd. HK 9,436
5,000 Sun Hung Kai Properties Ltd. HK 39,638
10,285 Wharf Holdings HK 21,325
631 Irish Permanent PLC IR 5,221
11,845 Assicurazioni Generali SPA IT 337,122
78,375 Beni Stabili IT 38,840
1,310 Riunione Adriatica di Sicurta SPA IT 13,389
265 Societa Assicuratrice Industriale (SAI) IT 2,082
600 Acom Co. Ltd. JP 57,817
* 800 Aiful Corp. JP 80,718
* 400 Aiful Corp. JP 44,062
1,400 Credit Saison Co. Ltd. JP 22,873
5,000 Daiwa Securities Co. Ltd. JP 76,368
5,000 Mitsubishi Estate Co. Ltd. JP 56,234
3,000 Mitsui Fudosan JP 30,492
49,000 Mitsui Marine and Fire Insurance Co. Ltd. JP 215,450
300 Orix Corp. JP 42,821
1,600 Shohkoh Fund & Co. Ltd JP 285,847
7,200 Takefuji Corp. JP 761,788
54,000 The Nomura Securities Co. Ltd. JP 1,359,623
4,000 The Sumitomo Marine & Fire Insurance Co. Ltd. JP 21,105
5,000 Tokio Marine & Fire Insurance Co. Ltd. JP 48,783
8,840 Aegon NV NL 635,420
7,000 Aegon NV (New York Shares) NL 506,625
The accompanying notes are a integral part of these financial statements.
FREMONT MUTUAL FUNDS 25
<PAGE>
FREMONT GLOBAL FUND
APRIL 30, 2000 (UNAUDITED)
STATEMENT OF INVESTMENTS IN SECURITIES AND NET ASSETS
Country Value
Shares Security Description Code (Note 1)
--------------------------------------------------------------------------------
FINANCIAL SERVICES (OTHER) (CONT.)
9,000 ING Groep NV, ADR NL $ 494,438
4,207 ING Groep NV NL 229,601
* 590 Storebrand ASA NO 3,695
3,000,000 SM Prime Holdings PH 392,394
100 Companhia de Seguros Tranquilidade PT 2,937
115 Corporacion Mapfre SP 1,742
260 Vallehermoso SA SP 1,759
175 OM Gruppen AB SW 7,281
1,115 Skandia Forsakrings AB SW 53,495
405 Schweizerische Rueckversicherungs-
Gesellschaft (Swiss Registered) SZ 651,527
155 Zurich Allied AG SZ 65,959
10,000 Land Securities PLC UK 120,307
27,400 Prudential Corp. PLC UK 423,549
27,000 Royal & Sun Alliance Insurance Group PLC UK 151,397
22,000 Ace Ltd. US 526,625
19,000 Alliance Capital Management Holding L.P. US 851,438
2,000 American General Corp. US 112,000
9,750 American International Group, Inc. US 1,069,453
24,800 Associates First Capital Corp. US 550,250
25,000 AXA Financial, Inc. US 815,625
9,000 Cigna Corp. US 717,750
47,250 Citigroup, Inc. US 2,808,422
* 3,100 Concord EFS, Inc. US 69,363
23,000 Federal National Mortgage Association US 1,387,188
23,000 GATX Corp. US 822,250
1,000 H&R Block, Inc. US 41,813
2,500 Legg Mason, Inc. US 94,531
11,800 Morgan Stanley, Dean Witter and Co. US 905,650
12,000 Providian Financial Corp. US 1,056,751
5,500 ReliaStar Financial Corp. US 236,844
2,000 The Goldman Sachs Group, Inc. US 186,500
------------
23,409,024
------------
HEALTH CARE 4.2%
165 Nova Nordisk AS (Class B) DK 22,151
70 Instrumentarium Group (Class B) FI 1,783
* 9,400 Sanofi Synthelabo SA FR 350,872
1,650 Schering AG GM 233,304
* 11,500 Elan Corp. PLC, ADR IR 493,063
11,000 Chugai Pharmaceutical Co. Ltd. JP 211,793
1,000 Daiichi Pharmaceutical Co. Ltd. JP 17,199
1,000 Eisai Co. Ltd. JP 29,159
76,000 Sankyo Co. Ltd. JP 1,674,350
33,000 Shionogi & Co. Ltd. JP 510,135
1,000 Taisho Pharmaceutical Co. Ltd. JP 33,509
40,000 Takeda Chemical Industries JP 2,632,602
1,000 Yamanouchi Pharmaceutical Co. Ltd. JP 52,856
96,500 Grupo Casa Autrey SA de CV, ADR MX 735,813
150 Fabrica Espanola de Productos Quimicos y
Farmaceuticos, SA (FAES) SP 1,659
40,798 Astrazeneca Group PLC SW 1,708,738
1,866 Novartis AG (Registered Shares) SZ 2,609,691
* 5 Roche Holding AG (Bearer) SZ 59,942
* 22 Roche Holding AG (Genusss) SZ 230,026
47,700 Glaxo Wellcome PLC UK 1,472,469
76,067 SmithKline Beecham PLC UK 1,039,874
26,400 Zeneca Group PLC UK 1,104,247
14,000 Abbott Laboratories US 538,125
* 15,800 Advance Paradigm, Inc. US 197,500
HEALTH CARE (CONT.)
1,000 Allergan, Inc. US $ 58,875
* 1,000 Alza Corp. (Class A) US 44,063
* 7,000 Amgen, Inc. US 392,000
* 5,000 Andrx Corp. US 255,938
* 14,800 ArthroCare Corp. US 1,507,750
2,000 Becton Dickinson & Co. US 51,250
* 15,000 Biogen, Inc. US 882,188
16,000 Bristol-Myers Squibb Co. US 839,000
11,000 Cardinal Health, Inc. US 605,688
* 16,300 Cytyc Corp. US 729,425
* 14,300 Endocare, Inc. US 235,950
* 1,000 Forest Laboratories, Inc. (Class A) US 84,063
* 19,300 Fusion Medical Technologies, Inc. US 337,750
* 35,000 Gene Logic, Inc. US 940,626
* 1,500 IDEC Pharmaceuticals Corp. US 96,000
* 18,000 Immunex Corp. US 708,750
4,000 IMS Health, Inc. US 68,250
* 8,200 InnerDyne, Inc. US 35,747
11,000 Johnson & Johnson US 907,500
10,000 Lilly (Eli) & Co. US 773,125
3,000 McKesson HBOC, Inc. US 50,625
* 7,500 MedImmune, Inc. US 1,199,532
18,800 Medtronic, Inc. US 976,425
19,000 Merck & Co. US 1,320,500
* 15,200 NeoPharm, Inc. US 232,750
* 21,100 Oxford Health Plans, Inc. US 400,900
5,600 PE Corp.-PE Biosystems Group US 336,000
32,000 Pfizer, Inc. US 1,348,000
* 2,600 Quintiles Transnational Corp. US 37,213
13,000 Schering Plough Corp. US 524,063
* 12,700 Sunrise Assisted Living, Inc. US 200,025
9,000 Warner-Lambert Co. US 1,024,313
------------
33,165,144
------------
MULTI-INDUSTRY 0.7%
10 D'Ieteren SA BE 2,501
* 65 Iss AS DK 4,109
195 Kesko Oyj FI 2,128
18,600 Vivendi FR 1,840,132
5,300 Metallgesellschaft AG GM 83,374
36,000 Hutchison Whampoa Ltd. HK 524,572
* 400,000 New World Infrastructure Ltd. HK 426,231
3,500 Swire Pacific Ltd. (Class A) HK 19,771
* 5,000 Itochu Corp. JP 23,281
5,000 Mitsubishi Corp. JP 43,506
5,000 Mitsui & Co. Ltd JP 37,073
1,000 Onward Kashiyama Co. Ltd. JP 12,941
100 Toho Co. Ltd. JP 18,884
* 24,921 Cemex SA de CV MX 545,147
* 1,557 Cemex SA-Rights MX 4,281
60,000 YTL Corp. Berhad MY 97,893
85 Sonae Investimentos-Sociedade Gestora de
Participacoes Sociais SA PT 3,416
11,200 Sasol Ltd. SA 65,737
2,000 Keppel Corp. SG 4,640
204,000 Singapore Technologies Engineering Ltd. SG 286,853
180 Corporacion Financiera Alba SA SP 4,714
240 Trelleborg AB SW 1,610
20 Alusuisse-Lonza Holding AG SZ 12,679
30,000 Synnex Technology International Corp., GDR TW 810,000
The accompanying notes are a integral part of these financial statements.
26 FREMONT MUTUAL FUNDS
<PAGE>
FREMONT GLOBAL FUND
APRIL 30, 2000 (UNAUDITED)
STATEMENT OF INVESTMENTS IN SECURITIES AND NET ASSETS
Country Value
Shares Security Description Code (Note 1)
--------------------------------------------------------------------------------
MULTI-INDUSTRY (CONT.)
31,000 TI Group PLC UK $ 168,406
6,400 Minnesota Mining & Manufacturing Co. US 553,600
------------
5,597,479
------------
RAW MATERIALS 1.8%
50 Boehler-Uddeholm AG AS 1,949
120 Radex-Heraklith Industriebeteiligungs AG AS 2,837
53,000 Broken Hill Proprietary Co. Ltd. AU 571,048
40,000 Broken Hill Proprietary Co. Ltd., ADR AU 847,500
20 Glaverbel SA BE 1,209
180 Solvay SA BE 12,177
315 UCB SA BE 10,598
70 Union Miniere SA BE 2,221
54,000 Dofasco Common CN 969,885
7,010 Inco Ltd. CN 110,049
10,100 Noranda, Inc. CN 95,817
9,400 Outokumpu Oyj FI 110,689
14,570 Upm-Kymmene Oyj FI 377,583
1,500 Compagnie de Saint-Gobain FR 204,729
25,000 Dessault Systemes SA FR 1,923,170
9,100 BASF AG GM 397,596
10,450 Bayer AG GM 424,273
* 2,500 Degussa-Huels AG GM 72,858
9,300 Henkel KGaA GM 490,476
1,100 Henkel KGaA (Vorzug) GM 63,715
* 28,600 Thyssen Krupp AG GM 598,398
143,353 DCC PLC IR 1,414,306
2,395 Jefferson Smurfit Group PLC IR 5,227
400 Burgo (Cartiere) SPA IT 3,783
4,085 Pirelli SPA IT 9,788
1,600 Snia SPA IT 1,485
5,000 Asahi Chemical Industry Co. Ltd. JP 28,788
6,000 Asahi Glass Co. Ltd. JP 52,652
3,000 Bridegestone Corp. JP 65,121
4,000 Dainippon Ink and Chemicals, Inc. JP 16,440
1,000 Ebara Corp. JP 11,562
2,000 Fuji Photo Film JP 80,163
1,000 Fujikura Ltd. JP 4,471
1,000 Inax Corp. JP 5,461
2,000 Kaneka Corp. JP 25,734
15,000 Kawasaki Steel JP 23,327
2,000 Kokuyo Co. Ltd. JP 28,418
2,000 Kyowa Hakko Kogyo JP 19,161
8,000 Mitsubishi Chemical Corp. JP 32,065
5,000 Mitsubishi Materials Corp. JP 16,662
3,000 Mitsui Mining & Smelting Co. Ltd. JP 17,301
4,000 Nippon Paper Industries Co. Ltd. JP 25,326
9,000 Nippon Sheet Glass JP 79,978
23,000 Nippon Steel Corp. JP 51,736
5,000 Oji Paper Co. Ltd. JP 31,380
1,000 Sekisui Chemical Co. Ltd JP 3,666
1,000 Shin-Etsu Chemical Co. Ltd JP 52,856
2,000 Shiseido Co. Ltd. JP 25,289
6,000 Sumitomo Chemical Co. JP 29,881
3,000 Sumitomo Electric Industries JP 39,961
37,000 Sumitomo Forestry Co. JP 210,636
* 9,000 Sumitomo Metal Industries Ltd. JP 5,832
3,000 The Furukawa Electric Co. Ltd. JP 41,627
4,000 Tosoh Corp. JP 21,142
RAW MATERIALS (CONT.)
1,000 Toto Ltd. JP $ 6,137
140,000 Kimberly-Clark de Mexico SA MX 458,723
370 Akzo Nobel NV NL 15,150
130 Buhrmann NV NL 3,351
15,000 Dsm NV NL 492,795
60 Koninklijke Hoogovens NV NL 3,164
70 Norske Skogindustrier ASA (Class A) NO 2,310
3,105 Carter Holt Harvey Ltd. NZ 2,623
1,678 Fletcher Challenge Building NZ 1,589
277 Cimpor-Cimentos de Portugal, SGPS, SA PT 4,123
400 Portucel Industrial-Empresa Produtora de
Celulosa SA PT 2,513
41,069 Hansol Paper Ltd., GDR SK 139,338
4,000 Pohang Iron & Steel Co. Ltd., ADR SK 84,000
115 Acerinox SA SP 4,580
* 200 Asturiana de Zinc, SA SP 2,050
120 Empresa Nacional de Celulosas SA SP 2,226
75 Portland Valderrivas SA SP 1,446
250 Uralitta, SA SP 1,964
200 Viscofan industria Navarra De Envolturas
Celulosicas SA SP 1,391
150 Sapa AB SW 2,751
160 SSAB Svenskt Stal AB (Series A) SW 1,843
200 SSAB Svenskt Stal AB (Series B) SW 2,147
425 Svenska Cellulosa AB (Class B) SW 8,080
* 10 Forbo Holding AG SZ 3,611
35 Holderbank Financiere Glarus AG SZ 11,176
658 Holderbank Financiere Glarus AG (Class B) SZ 744,906
5 Sika Finanz AG SZ 1,547
38,203 BOC Group PLC UK 627,655
86,000 CRH PLC UK 115,628
47,050 Northern Technologies International Corp. US 323,469
20,000 Weyerhaeuser Co. US 1,068,750
------------
13,911,038
------------
REIT 0.1%
56,000 Host Marriot Corp. US 598,500
------------
598,500
------------
RETAIL 1.9%
215,201 Coles Myer Ltd. AU 806,258
100 Colruyt NV BE 3,864
115 Delhaize-Le Lion SA BE 5,819
* 3,700 InterTAN, Inc. CN 51,106
100 Stockmann AB FI 1,455
3,650 Pinault-Printemps-Redoute SA FR 736,474
1,000 Fyffes PLC IR 1,682
200 Aoyama Trading Co. JP 2,612
4,000 Daiei, Inc. JP 11,849
1,000 Daimaru, Inc. JP 3,305
1,000 Hankyu Department Stores, Inc. JP 4,665
1,000 Isetan Company Ltd. JP 9,257
1,000 Ito-Yokado Co. Ltd. JP 73,035
11,000 Jusco Co. Ltd. JP 203,647
1,000 Marui Co. Ltd. JP 18,791
1,000 Mycal Corp. JP 3,055
* 4,000 Seiyu Ltd. JP 11,997
1,000 Takashimaya Co. Ltd. JP 7,822
200,000 Cifra SA de CV (Series C) MX 426,596
The accompanying notes are a integral part of these financial statements.
FREMONT MUTUAL FUNDS 27
<PAGE>
FREMONT GLOBAL FUND
APRIL 30, 2000 (UNAUDITED)
STATEMENT OF INVESTMENTS IN SECURITIES AND NET ASSETS
Country Value
Shares Security Description Code (Note 1)
--------------------------------------------------------------------------------
RETAIL (CONT.)
50,599 Cifra SA de CV (Series V) MX $ 117,347
135 Hagemeyer NV NL 2,658
816 Koninklijke Ahold NV NL 19,032
80 Cortefiel SA SP 1,688
* 460 TelePizza SA SP 3,718
1,800 Hennes & Mauritz AB (Series B) SW 47,911
15 Valora Holding AG SZ 3,901
23,428 New Dixons Group PLC UK 95,044
* 29,600 Abercrombie & Fitch Co. (Class A) US 325,600
* 6,500 Bed Bath & Beyond, Inc. US 238,469
* 17,000 Best Buy Co., Inc. US 1,372,750
* 25,800 Buca, Inc. US 388,612
16,000 CBRL Group, Inc. US 222,000
* 1,800 CEC Entertainment, Inc. US 54,000
2,000 Circuit City Stores-Circuit City Group US 117,625
* 5,000 Costco Wholesale Corp. US 270,312
* 18,500 David's Bridal, Inc. US 212,750
1,000 Dollar General Corp. US 22,875
3,000 Family Dollar Stores, Inc. US 57,187
16,250 Gap, Inc. US 597,188
* 10,400 Genesco, Inc. US 134,550
31,000 Home Depot, Inc. US 1,737,937
* 22,000 Kohls Corp. US 1,056,000
13,000 Lowe's Cos., Inc. US 643,500
* 5,000 Office Depot, Inc. US 52,813
* 43,400 Rent-Way, Inc. US 1,125,688
* 3,100 REX Stores Corp. US 77,887
* 2,100 SkyMall, Inc. US 7,350
* 29,500 Staples, Inc. US 562,344
* 2,000 Starbucks Corp. US 60,469
2,000 Tandy Corp. US 114,000
* 4,600 The Children's Place Retail Stores, Inc. US 102,350
4,000 The TJX Companies, Inc. US 76,750
2,500 Tiffany & Co. US 181,719
* 6,900 Twinlab Corp. US 51,750
* 7,500 ValueVision International, Inc. US 149,531
* 9,200 Venator Group, Inc. US 109,250
39,000 Wal-Mart Stores, Inc. US 2,159,625
* 4,600 Zale Corp. US 189,750
------------
15,147,219
------------
SHELTER 0.1%
3,000 Sekisui House Ltd. JP 27,492
* 1,459,000 Filinvest Land, Inc. PH 67,852
2,000 City Developments Ltd. SG 9,081
3,750 DBS Land Ltd. SG 5,317
100 ACS, Actividades De Con SP 2,772
260 Fomento de Construcciones y Contratas SA SP 5,331
* 300 Inmobiliaria Urbis SA SP 1,424
99 Metrovacesa SA SP 1,670
245 Drott AB SW 2,192
245 Skanska AB (Class B) SW 8,960
* 14,500 Modtech Holdings, Inc. US 142,281
25,000 The St. Joe Co. US 720,313
------------
994,685
------------
TECHNOLOGY 13.8%
30 Barco NV BE $ 3,273
40 Bang & Olufsen Holding AS (Class B) DK 1,328
80 GN Store Nord AS (GN Great Nordic) DK 6,493
44,340 Nokia Oyj FI 2,544,089
* 15,900 Infineon Technologies AG GM 1,080,591
* 2,900 T-Online International AG GM 106,797
73,000 Johnson Electric Holdings Ltd. HK 588,090
* 5,000 Nova Measuring Instruments Ltd. IS 71,875
455 Sirti SPA IT 856
3,800 Advantest Corp. JP 869,184
53,000 Canon, Inc. JP 2,423,586
800 Fanuc Ltd. JP 83,829
10,000 Fuji Soft ABC, Inc. JP 592,428
56,000 Fujitsu Ltd. JP 1,586,226
900 Hikari Tsushin, Inc. JP 129,964
6,200 Hirose Electronics JP 749,532
43,000 Hitachi Ltd. JP 513,469
1,430 Keyence Corp. JP 474,549
7,000 Matsushita Electric Industrial Co. Ltd. JP 185,319
44,000 NEC Corp. JP 1,197,445
36,000 Nichicon Corp. JP 966,398
26,000 Nikon Corp. JP 914,560
1,000 Omron Corp. JP 27,215
8,000 Sanyo Electric Co. Ltd. JP 53,393
4,000 Sharp Corp. JP 77,201
* 3,000 Softbank Corp. JP 738,683
* 600 Softbank Corp. (New) JP 148,292
12,000 Taiyo Yuden Co. Ltd. JP 849,764
2,000 TDK Corp. JP 267,889
36,000 Tokyo Electron Ltd. JP 5,868,370
41,000 Toshiba Corp. JP 397,741
* 5,000 Trend Micro, Inc. JP 749,792
3,000 Samsung Electronics LU 243,375
* 41,010 ASM Lithography Holding NV NL 1,639,941
606 TNT Post Group NV NL 13,225
6,000 Creative Technology Ltd. SG 159,659
265,000 NatSteel Electronics Ltd. SG 1,521,561
4,500 Samsung Electronics, GDR SK 725,625
6,200 Ericsson (L.M.) Telephone Co., ADR SW 548,313
53,350 Telefonaktiebolaget LM Ericsson (Class B) SW 4,755,295
17,000 Asustek Computer, Inc. TW 224,400
* 7,000 Hon Hai Precision Industry Co. TW 195,475
74,000 Taiwan Semiconductor Manufacturing Co.
Ltd., ADR TW 3,871,126
56,382 British Aerospace PLC UK 349,016
1,000 Adobe Systems, Inc. US 120,938
* 2,000 Altera Corp. US 204,500
* 20,000 Analog Devices, Inc. US 1,536,251
* 28,200 Anaren Microwave, Inc. US 2,932,800
* 19,200 Ancor Communications, Inc. US 579,600
* 10,000 Applied Materials, Inc. US 1,018,125
* 16,000 Applied Micro Circuits Corp. US 2,062,000
* 1,000 Atmel Corp. US 48,937
* 3,100 ATMI, Inc. US 119,350
* 11,000 BEA Systems, Inc. US 530,750
* 16,100 Blue Wave Systems, Inc. US 206,281
* 9,000 BMC Software, Inc. US 421,312
* 1,000 Broadcom Corp. US 172,375
* 29,500 Cabletron Systems, Inc. US 674,812
* 7,200 California Amplifier, Inc. US 194,400
The accompanying notes are a integral part of these financial statements.
28 FREMONT MUTUAL FUNDS
<PAGE>
FREMONT GLOBAL FUND
APRIL 30, 2000 (UNAUDITED)
STATEMENT OF INVESTMENTS IN SECURITIES AND NET ASSETS
Country Value
Shares Security Description Code (Note 1)
--------------------------------------------------------------------------------
TECHNOLOGY (CONT.)
* 31,100 California Micro Devices Corp. US $ 653,100
* 7,000 Check Point Software Technologies Ltd. US 1,211,000
* 2,000 CIENA Corp. US 247,250
* 56,000 Cisco Systems, Inc. US 3,882,375
* 12,600 Citrix Systems, Inc. US 769,387
18,000 Compaq Computer Corp. US 526,500
10,000 Computer Associates International, Inc. US 558,125
* 12,000 Compuware Corp. US 150,750
* 2,000 Conexant Systems, Inc. US 119,750
* 6,200 Copper Mountain Networks, Inc. US 516,925
1,200 Cordant Technologies, Inc. US 67,950
* 6,300 Critical Path, Inc. US 366,187
* 7,200 CyberOptics Corp. US 275,400
* 20,200 Datalink Corp. US 335,825
* 29,000 Dell Computer Corp. US 1,453,625
* 6,000 EchoStar Communications Corp. US 382,125
* 1,000 Electronic Arts, Inc. US 60,500
* 17,000 EMC Corp/Mass US 2,361,937
* 1,000 E-Tek Dynamics, Inc. US 204,750
* 27,200 Exigent International, Inc. US 66,300
* 1,000 Gateway, Inc. US 55,250
10,000 Hewlett-Packard Co. US 1,350,000
* 14,400 Information Resource Engineering, Inc. US 370,800
* 9,000 Inktomi Corp. US 1,385,437
30,000 Intel Corp. US 3,804,375
* 3,000 InterNap Network Services Corp. US 115,500
14,000 International Business Machines Corp. US 1,562,750
* 3,500 Internet Commerce Corp. US 78,531
* 1,000 Intuit, Inc. US 35,938
* 22,000 Jabil Circuit, Inc. US 900,625
* 32,000 JDS Uniphase Corp. US 3,318,000
7,800 Keithley Instruments, Inc. US 434,850
* 1,000 KLA-Tencor Corp. US 74,875
* 10,500 Legato Systems, Inc. US 135,844
* 9,000 Lexmark International Group, Inc. US 1,062,000
13,000 Linear Technology Corp. US 742,625
* 1,000 LSI Logic Corp. US 62,500
27,000 Lucent Technologies, Inc. US 1,679,063
* 1,000 Lycos, Inc. US 46,500
* 4,600 Marimba, Inc. US 91,138
* 8,500 Maxim Integrated Products, Inc. US 550,906
* 23,800 MDSI Mobile Data Solutions, Inc. US 833,000
* 11,900 Merix Corp. US 260,313
8,900 Methode Electronics, Inc. US 370,880
* 1,000 Microchip Technology, Inc. US 62,062
* 4,000 Micron Technology, Inc. US 557,000
* 44,200 Microsoft Corp. US 3,082,950
6,000 Motorola, Inc. US 714,375
* 3,500 MTI Technology Corp. US 54,250
* 47,800 Netopia, Inc. US 1,995,650
* 13,200 New Era of Networks, Inc. US 414,150
* 3,000 Novell, Inc. US 58,875
* 1,000 Novellus Systems, Inc. US 66,687
* 25,000 Oracle Systems Corp. US 1,998,438
* 6,200 Palm, Inc. US 168,950
* 18,400 PC-Tel, Inc. US 616,400
* 3,600 Peregrine Systems, Inc. US 86,625
* 700 Photon Dynamics, Inc. US 51,800
* 1,000 PMC-Sierra, Inc. US 191,875
* 26,300 Princeton Video Image, Inc. US 197,250
TECHNOLOGY (CONT.)
* 7,900 Puma Technology, Inc. US $ 241,937
* 1,000 QLogic Corp. US 100,312
* 1,000 Rambus, Inc. US 230,000
* 1,000 Rational Software Corp. US 85,125
* 1,000 RF Micro Devices, Inc. US 104,063
* 1,000 Sanmina Corp. US 60,063
* 1,000 SCI Systems, Inc. US 53,250
6,000 Scientific-Atlanta, Inc. US 390,375
* 5,500 Siebel Systems, Inc. US 675,812
* 12,900 SmartForce Public Ltd. Co. US 615,975
* 10,000 Solectron Corp. US 468,125
11,200 STMicroelectronics NV US 2,124,500
* 14,000 Sun Microsystems, Inc. US 1,287,125
* 8,000 Tellabs, Inc. US 438,500
* 14,000 Teradyne, Inc. US 1,540,000
8,000 Texas Instruments, Inc. US 1,303,000
* 100 Tricord Systems, Inc. US 1,250
4,528 United Technologies Corp. US 281,585
* 5,400 VeriSign, Inc. US 752,625
* 15,750 VERITAS Software Corp. US 1,689,433
* 3,000 Vignette Corp. US 144,563
* 13,700 Vitesse Semiconductor Corp. US 932,456
* 3,200 VocalTec Communications Ltd. US 56,800
* 6,200 Websense, Inc. US 201,500
* 26,200 Xilinx, Inc. US 1,919,150
------------
108,883,985
------------
TRANSPORTATION 0.4%
* 80 Austrian Airlines Osterreichische
Luftverkehrs AG AS 1,215
60 Compagnie Maritime Belge SA BE 2,701
4,432,000 Beijing Capital International Airport
Company Ltd. CH 745,381
2 A/S Dampskibsselskabet Svendborg DK 27,704
2 D/S 1912 (Class B) DK 20,137
100 Finnlines Oyj FI 1,741
8,000 Cathay Pacific Airways HK 14,430
* 690 Ryanair Holdings PLC IR 5,741
3,345 Alitalia SPA IT 6,692
15 East Japan Railway Co. JP 88,864
8,000 Japan Airlines Company Ltd. JP 24,882
8,000 Kinki Nippon Railway Co. Ltd. JP 30,214
4,000 Nippon Express Co. Ltd. JP 25,252
8,000 Nippon Yusen Kabushiki Kaisha JP 31,843
5,000 Tobu Railway Co. Ltd. JP 13,237
3,000 Tokyu Corp. JP 11,775
40,000 Yamato Transport Co. Ltd. JP 999,722
61 IHC Caland NL 2,468
4,075 Koninklijke Luchtvaart Maatschapij NV NL 68,550
200 Bergesen d.y. ASA (Class A) NO 3,366
200 Bergesen d.y. ASA (Class B) NO 3,199
300 SAS Norge ASA NO 2,667
650 Brisa-Auto Estradas de Portugal SA PT 4,592
2,000 Singapore Airlines Ltd. SG 20,741
50 SAirGroup SZ 8,882
290 BAA PLC UK 1,886
16,100 British Airways PLC UK 84,021
9,500 Kansas City Southern Industries, Inc. US 682,812
------------
2,934,715
------------
The accompanying notes are a integral part of these financial statements.
FREMONT MUTUAL FUNDS 29
<PAGE>
FREMONT GLOBAL FUND
APRIL 30, 2000 (UNAUDITED)
STATEMENT OF INVESTMENTS IN SECURITIES AND NET ASSETS
Country Value
Shares Security Description Code (Note 1)
--------------------------------------------------------------------------------
UTILITIES 5.7%
65 Oesterreichische Elektrizitaetswirtschafts AG
(Class A) AS $ 6,212
190,000 Telstra Corp. Ltd. AU 814,865
120 Electrabel NPV BE 29,014
2,100 Telecomunicacoes de Sao Paulo SA BR 53,025
9,069 Enersis SA, ADR CL 168,910
185 Lyonnaise Des Eaux-Dumez FR 29,203
* 2,019 Suez Lyonnaise des Eaux SA, Strip FR 19
40,300 Deutsche Telekom AG GM 2,631,096
2,000 Veba AG GM 97,295
* 100,000 China Telecom (Hong Kong) Ltd. HK 722,154
5,500 CLP Holdings Ltd. HK 24,643
16,500 Hong Kong & China Gas Co. Ltd. HK 18,112
91,200 Hong Kong Telecommunications HK 214,851
* 2,200 Enel SPA IT 9,322
1,510 Italgas SPA IT 6,659
* 269,370 Olivetti SPA IT 891,575
324,460 Telecom Italia Mobile SPA IT 3,097,830
38,425 Telecom Italia SPA IT 487,913
18 DDI Corp. JP 206,609
3,500 Kansai Electric Power JP 55,077
190 Nippon Telegraph & Telephone JP 2,356,752
44 NTT Mobile Communication Network, Inc JP 1,470,332
10,000 Osaka Gas Co. JP 27,307
2,500 Tohoku Electric Power Co., Inc. JP 29,483
5,000 Tokyo Electric Power JP 118,023
10,000 Tokyo Gas Co. JP 22,031
44,000 Telefonos de Mexico SA (Class L), ADR MX 2,587,750
300,000 Telekom Malaysia Berhad MY 1,042,092
3,720 Telecom Corp. of New Zealand Ltd. NZ 15,713
97,766 Manila Electric Co. (Class B) PH 175,238
1,320 EDP-Electricidade de Portugal SA PT 23,405
15,575 Portugal Telecom SA PT 173,772
* 1,000 PT MULTMEDIA - Servicos de
Telecomminacaoes PT 69,789
3,200 Telecel-Comunicacoes Pessoais, SA PT 50,630
573,000 Singapore Telecommunications Ltd. SG 825,861
20,000 Korea Electric Power Corp., ADR SK 327,500
16,375 Endesa SA SP 355,270
975 Gas Natural SDG, SA SP 16,295
1,955 Iberdrola SA SP 25,083
* 88,873 Telefonica SA SP 1,978,283
660 Union Electrica Fenosa SA SP 12,645
* 225 NetCom Systems AB (Class B) SW 16,029
1,235 Swisscom AG SZ 435,924
* 10,600 COLT Telecom Group PLC UK 461,166
1,563,808 Vodafone Group PLC UK 7,134,115
* 11,000 AES Corp. US 989,312
* 14,500 Alamosa PCS Holdings, Inc. US 413,250
* 12,000 Allegiance Telecom, Inc. US 849,000
1,000 ALLTEL Corp. US 66,625
25,700 AT&T Corp. US 1,199,869
14,000 Bell Atlantic Corp. US 829,500
20,200 BellSouth Corp. US 983,487
* 33,100 Cadiz, Inc. US 239,975
* 17,000 Calpine Corp. US 1,555,500
11,000 GTE Corp. US 745,250
54,000 KeySpan Corp. US 1,586,250
* 36,650 MCI WorldCom, Inc. US 1,665,284
* 8,500 NEXTLINK Communications, Inc. US 716,656
UTILITIES (CONT.)
* 19,500 QUALCOMM, Inc. US $ 2,114,531
26,000 SBC Communications, Inc. US 1,139,125
* 1,000 SDL, Inc. US 195,000
3,500 Telephone & Data Systems, Inc. US 357,000
------------
44,960,486
------------
TOTAL STOCKS (Cost $ 317,693,458) 391,263,345
------------
BONDS 24.6%
FOREIGN CORPORATE BONDS 7.2%
AUS$
4,000,000 John Hancock Global Fund, 6.750%, 02/15/06 2,277,548
CAN$
140,000 Beneficial Canada, Inc. 6.350%, 04/01/02 93,427
2,000,000 Oesterreichische Kontrollbank
(Republic of Austria), 9.000%, 06/19/02 1,423,160
2,000,000 Toyko Electric Power, 10.500%, 06/14/01 1,407,698
DKK
29,793,000 Realkredit Danmark, 6.000%, 10/01/29 3,424,466
2,000 Realkredit, 5.000%, 10/01/29 214
66,000 Unikredit Realkredit, 5.000%, 10/01/29 7,067
E 3,000,000 Alcatel, 4.375%, 02/17/09 2,423,194
2,000,000 Allgemeine Hypbk, 5.000%, 09/02/09 1,715,531
243,000 Allgemeine Hypobk AG, 5.500%, 07/13/10 215,613
34,650 Axa Convertible Bond, 2.500%, 01/01/14 32,796
490,000 Buoni Poliennali Del Tes, 5.250%, 11/01/29 408,130
2,000,000 Crown Cork & Seal Fin SA, 6.000%, 12/06/04 1,741,855
3,000,000 Daimlerchrysler NA Hldg, 4.875%, 11/04/02 2,716,034
2,000,000 Depfa Pfandbrief, 4.500%, 11/12/02 1,798,959
90,000 Depfa Pfandbriefbank, 5.750%, 03/04/09 82,123
90,000 Depfa Pfandbriefvank, 5.750%, 07/15/08 77,045
3,000,000 Deutsche Telecom Int Fin, 5.250%, 05/20/08 2,598,598
343,000 Eurohpobank, 4.000%, 4/27/09 274,619
110,000 Hypothekenbk In Essen, 4.750%, 08/11/08 93,742
2,000,000 Kredit Fuer Wiederaufbau, 3.500%, 07/15/04 1,709,029
170,000 Lloyds TSB Bank PLC, 5.625%, 07/15/49 144,606
2,000,000 Tecnost International, 5.616%, 06/23/04 1,863,201
(pound)
2,000,000 Abbey National Treasury Service,6.500%,03/05/04 3,079,632
80,000 Abbey National Treasury Service, 7.625%,12/30/02 126,679
90,000 BG Transco Holdings PLC, FRN, 7.057%, 12/14/09 140,392
7,069 British Aerospace, 7.450%, 11/29/03 10,989
2,000,000 European Investment Bank, 6.000%, 11/26/04 3,033,001
2,000,000 Railtrack PLC, 9.125%, 03/25/06 3,427,340
(Y)
17,000,000 KFW Intl 1.75, 1.750%, 03/23/10 156,883
28,000,000 Korea Development Bank, 2.700%, 08/16/02 260,575
300,000,000 Petroliam Nasional BHD, 3.600%, 06/12/06 2,983,616
3,980,256 SHL Corp. Ltd. 1999-1-a1 144a, 0.544%,12/25/24 36,850
5,000,000 SHL Corp. Ltd. 1999-1-a1 144a, 0.734%,12/25/24 46,283
200,000,000 Westpac Banking, 0.875%, 09/22/03 1,850,597
NZ$
7,000,000 Inter-American Develepmont Bank, 5.750%,04/15/04 3,202,746
SEK
3,000,000 Eurofima, 4.750%, 07/07/04 321,299
$ 3,000,000 AES China Generating Co., 10.125%, 12/15/06 2,053,740
100,000 Allied Irish Banks Ltd., 6.495%, 09/07/06 100,480
The accompanying notes are a integral part of these financial statements.
30 FREMONT MUTUAL FUNDS
<PAGE>
FREMONT GLOBAL FUND
APRIL 30, 2000 (UNAUDITED)
STATEMENT OF INVESTMENTS IN SECURITIES AND NET ASSETS
Value
Shares Security Description (Note 1)
--------------------------------------------------------------------------------
FOREIGN CORPORATE BONDS (CONT.)
$ 2,000,000 Asia Pulp & Paper International Finance,
10.250%, 10/01/00 $ 1,955,000
3,000,000 Cemex SA de CV, 10.750%, 07/15/00 3,016,050
100,000 Comp Fin Cic Float, 6.886%, 10/29/49 95,500
200,000 Deutsche Bank Finance, 5.218%, 12/17/03 199,592
3,000,000 Grupo Televisa (callable 05/15/01 @106.625),
0.000%,05/15/08 2,949,810
140,000 Petroleos Mexicanos, 8.850%, 09/15/07 137,683
150,000 Petroleos Mexicanos, 9.375%, 12/02/08 155,866
100,000 Sanwa Bank Ltd., 8.350%, 07/15/09 98,785
1,000,000 Sony Corp., 6.125%, 03/04/03 967,958
------------
56,936,001
------------
FOREIGN GOVERNMENT BONDS 7.9%
AUS$
100,000 Government of Australia, 8.750%, 08/15/08 67,095
CAN$
4,050,000 Government of Canada, 6.000%, 06/01/08 2,696,053
2,000,000 Japan Highway Public Corp., 7.875%, 09/27/02 1,400,405
2,000,000 Republic of Finland, 9.500%, 09/15/04 1,490,682
DM
6,000,000 United Mexican States, 8.125%, 09/10/04 3,075,431
DKK
20,000,000 Denmark-Bullet, 6.000%, 11/15/02 2,477,025
1,700,000 Kingdom of Denmark, 7.000%, 11/15/07 224,905
E 210,000 Bonos Y Oblig Del Estado, 6.000%, 01/31/29 195,956
2,000,000 Bundesrepublic Deutschland, 6.500%,10/14/05 1,930,808
4,601,626 Cades, 5.125%, 10/25/08 4,058,940
4,601,626 Deutschland Republic, 5.625%, 01/04/28 4,141,579
3,000,000 Finnish Government, 5.750%, 02/23/11 2,777,548
3,048,980 Government of France, 6.000%, 10/25/25 2,889,989
4,417,470 Government of France, 8.500%, 10/25/19 5,356,410
85,000 Government of Netherlands, 5.500%, 01/15/28 75,204
495,000 Government of Netherlands, 5.500%, 07/15/10 451,004
455,000 Government of Netherlands, 6.000%, 01/15/06 429,246
3,208,096 Government of Spain, 6.000%, 01/31/08 3,012,657
190,000 Netherlands Government, 5.250% 07/15/08 171,212
485,000 Netherlands Government, 5.750% 02/15/07 452,256
546,000 Netherlands Government, 3.750%, 07/15/09 437,397
350,000 Netherlands Government, 7.500%, 01/15/23 390,181
230,000 Republic of Austria, 6.250%, 07/15/27 219,596
2,906,920 Republic of Austria, 5.625%, 07/15/07 2,659,122
120,000 Republic of Philippines, 8.000%, 09/17/04 110,174
3,000,000 Treuhandanstalt, 6.750%, 05/13/04 2,896,997
100,000 Treuhandanstalt, 7.500%, 09/09/04 99,443
GRD
700,000,000 Hellenic Republic, 6.600%, 01/15/04 1,934,852
800,000,000 Hellenic Republic, 7.600%, 01/22/02 2,212,167
1,000,000,000 Hellenic Republic, 8.800%, 06/19/07 3,117,506
(Y)
30,200,000 Government of Japan, 3.400%, 06/20/05 311,004
28,000,000 Japanese Government Bond, 1.400%, 06/22/09 249,727
8,000,000 Japanese Government Bond, 2.900%, 12/20/06 80,533
22,000,000 Japanese Government Bond, 3.000%, 09/20/05 222,690
12,000,000 United Mexican States, 5.000%, 09/30/02 119,600
NOK
1,200,000 European Investment Bank, 5.375%, 08/28/07 123,646
NZ$
1,100,000 Government of New Zealand, 7.000%, 07/15/09 532,900
2,000,000 International Bank of Reconstruction &
Development, 7.25%, 04/09/01 973,767
800,000 New Zealand Government Bond, 5.500%, 04/15/03 372,780
100,000 New Zealand Government Index Linked, 4.500%, 02/15/16 48,358
$ 40,000 Bancomext Trust Division, 8.000%, 08/05/03 39,300
FOREIGN GOVERNMENT BONDS (CONT.)
$ 2,000,000 Ontario Global, 7.000%, 08/04/05 $ 1,966,300
1,000,000 Ontario Global, 7.000%, 08/04/05 983,150
450,000 Peru Pdi Brady, 4.500%, 03/07/17 300,375
2,000,000 Republic of Brazil, 11.625%, 04/15/04 1,977,700
48,000 Republic of Philippines, 6.000%, 12/01/09 44,491
2,000,000 United Mexican States, 11.500%, 05/15/26 2,365,000
------------
62,163,161
------------
U.S. CORPORATE BONDS 3.3%
(pound)
520,000 General Motors Acceptance Corp., 6.875%, 09/09/04 809,433
(Y)
28,000,000 Ford Motor Credit Co., 1.200%, 02/07/05 256,452
200,000,000 Ford Motor Credit Co., 1.000%, 12/22/03 1,843,099
200,000,000 Toyota Motor Credit, 1.000%, 12/20/04 1,839,859
$ 12,000 AES Corp., 10.250%, 07/15/06 11,790
13,000 Beckman Instruments, Inc., 7.100%, 03/04/03 12,238
3,000,000 BellSouth Telecommunications, Inc.,
6.375%, 06/01/28 2,474,520
3,000,000 BP America, Inc., 5.750%, 07/30/01 2,945,250
12,000 Buckeye Technologies, Inc., 8.000%, 10/15/10 10,830
7,000 Building Materials Corp., 7.750%, 07/15/05 6,073
7,000 Building Materials Corp., 8.000%, 10/15/07 5,985
15,000 Calpine Corp., 7.875%, 04/01/08 14,119
15,000 Century Communications Corp., 0.000%, 03/15/03 10,950
200,000 Charter Financial, Inc., 6.590%, 02/25/02 199,746
15,000 CMS Energy Corp., 8.125%, 05/15/02 14,742
15,000 Echostar DBS 9.250%, 02/01/06 14,625
3,000,000 Export-Import Bank of Korea, 7.100%, 03/15/07 2,940,780
15,000 Flag Ltd., 8.250%, 01/30/08 13,350
2,000,000 Frank Russell Co., 5.625%, 01/15/09 1,716,194
9,000 Garden State Newspapers, 8.750%, 10/01/09 8,010
2,500,000 General Electric Capital Corp., 8.850%, 03/01/07 2,685,800
12,000 Hollinger International Publishing, 8.625%, 03/15/05 11,640
1,465,000 Ingersoll-Rand, 6.015%, 2/15/28 1,442,161
240,000 J Seagram & Sons, 5.790%, 04/15/01 235,651
15,000 Jones Intercable, Inc., 8.875%, 04/01/07 15,302
300,000 Juniper Networks, 4.75%, 03/15/07 274,875
100,000 Kroger Co., 7.062%, 10/01/10 99,943
1,000,000 Lehman Brothers Holdings, Inc., 7.375%, 05/15/07 1,000,100
15,000 McLeodusa, Inc., 8.125%, 02/15/09 13,500
10,000 MGM Grand, Inc., 6.950%, 02/01/05 9,187
2,000,000 Monsanto Co., 6.500%, 12/01/18 1,756,786
50,000 Morgan JP & Co., 3.451%, 02/15/12 44,326
9,000 Navistar International, 8.000%, 02/01/08 8,460
100,000 Oneok, Inc., 6.960%, 04/24/02 100,000
9,000 Polymer Group, Inc., 9.000%, 07/01/07 8,100
15,000 Rogers Cantel, Inc., 8.300%, 10/01/07 14,550
9,000 Silgan Holdings, Inc., 9.000%, 06/01/09 8,460
30,000 Sprint Capital Corp., 5.875%, 05/01/04 28,202
3,000,000 Sunamerica, Inc. 6.750%, 10/01/07 2,869,890
9,000 TV Guide Inc., 8.125%, 03/01/09 8,910
6,000 World Color Press, Inc., 8.375%, 11/15/08 5,719
------------
25,789,607
------------
The accompanying notes are a integral part of these financial statements.
FREMONT MUTUAL FUNDS 31
<PAGE>
FREMONT GLOBAL FUND
APRIL 30, 2000 (UNAUDITED)
STATEMENT OF INVESTMENTS IN SECURITIES AND NET ASSETS
Value
Shares Security Description (Note 1)
--------------------------------------------------------------------------------
U.S. GOVERNMENT & AGENCIES 5.3%
(pound)
1,400,000 FHLB, 5.625%, 6/10/03 $ 2,116,248
(Y)
200,000,000 FNMA, 1.750%, 03/26/08 1,870,684
$ 3,000,000 FHLMC, 6.875%, 01/15/05 2,956,860
3,000,000 FNMA, 6.000%, 02/19/04 2,867,820
2,000,000 FNMA, 7.250%, 01/15/10 1,994,060
3,000,000 Freddie Mac, 6.450%, 04/29/09 2,767,980
2,363,143 GNMA, 5.500%, 05/20/14 2,157,100
480,000 U.S. Treasury Bond, 12.500%, 08/15/14 672,298
4,237,566 U.S. Treasury Inflation Indexed Bond, 3.625%,
07/15/02 4,228,964
6,207,317 U.S. Treasury Inflation Indexed Bond, 3.875%,
01/15/09 6,151,066
3,096,233 U.S. Treasury Inflation Indexed Bond, 3.875%,
04/15/29 3,103,013
100,000 U.S. Treasury Note, 5.125%, 08/31/00 99,609
4,200,000 U.S. Treasury Note, 5.625%, 05/15/08 3,989,328
3,000,000 U.S. Treasury Note, 6.500%, 10/15/06 2,993,430
3,739,652 U.S. Treasury Inflationary Protect Note,
3.625%, 07/15/02 3,732,060
------------
41,700,520
------------
COLLATERALIZED MORTGAGE OBLIGATIONS 0.5%
E
400000 Haus Limited 1mlibor+30, 3.850%, 12/10/37 363,720
100,000 Island Finance SPA-4 A 6moeur, 4.626%,
03/20/15 90,930
189,111 Originated Mortgage Loans PLC, 4.340%,12/15/31 172,216
84,684 Registered Australian Mortgage Security,
4.017%, 09/26/32 77,011
(Y)
10,000,000 Intl Cred Recv B .5, 0.755%, 11/22/04 92,567
5,440,734 Intl Cred Recv A .43, 0.655%, 11/22/04 50,363
$ 183,989 Amresco Residential Securities,5.876%,06/25/29 184,597
200,000 Bank of America Mortgage Securities, 1999-5-a4
Nas Wm 29 Wc 7.0959, 6.500%, 05/25/29 179,812
300,000 Crusade Global Trust, 1999-1 A2, 6.400%, 02/15/30 300,750
254,090 FHLMC, 6.500%, 08/15/23 247,974
250,000 Government Lease Trust, 4.000%, 05/18/11 175,924
394,667 Nhel 1998-1 A 1mlib, 6.257%, 04/25/28 394,465
70,000 PSB Lending Home Loan Owner Trust, 6.830%, 05/20/18 68,536
700,000 Residential Mortgage Securities CMO,
2000-rms-8-a, 6.560%, 05/12/32 699,552
267,505 Salomon Brothers Mortgage Securities VII,
5.464%, 06/25/29 265,793
280,508 Salomon Brothers Mortgage Securities VII,
6.882%, 11/15/29 280,508
85,224 SASCO Floating Rate Commercial Mortgage,
1999-c3-a Seq 1mlib+45, 6.471%, 05/12/32 85,291
348,895 United Panam Mortgage Loan Asset Backed,
1999-2-a2 Fsa, 6.575%, 10/25/29 348,470
------------
4,078,479
------------
MORTGAGE BACKED SECURITIES 0.4%
E
100,000 GMAC Australia Finance, 3.648%, 03/25/02 $ 90,994
$ 1,000,000 GNMA, 6.000%, 05/22/30 907,970
500,000 GNMA, 7.000%, 05/22/30 480,780
1,900,000 GNMA, 7.500%, 05/22/30 1,868,536
200,000 Medallion Trust, 6.509%, 07/12/31 200,000
------------
3,548,280
------------
TOTAL BONDS (Cost $211,124,586) 194,216,048
------------
OTHER SECURITIES 0.0%
48,000 Call Option on the U.S.Treasury Note,
6.250%, Strike @ 100.00, Exp. 05/01/00 64,416
13,000 Call Option on the U.S.Treasury Note,
5.625%, Strike @ 105.00, Exp. 05/08/00 128,518
------------
TOTAL OTHER SECURITIES (Cost $201,953) 192,934
------------
SHORT TERM SECURITIES 25.2%
2,700,000 AIG Funding, Inc., CP, 5.860%(a), 05/18/00 2,692,529
** 5,000,000 American Home Products, CP, 5.990%(a), 05/02/00 4,999,168
2,700,000 American Honda Finance, CP, 5.850%(a), 05/17/00 2,692,980
5,000,000 American Honda Finance, CP, 6.070%(a), 06/05/00 4,970,493
2,700,000 Citicorp, CP, 6.030%(a), 05/04/00 2,698,643
2,000,000 Coca-Cola Co., CP, 6.000%(a), 06/02/00 1,989,333
2,700,000 Daimlerchrysler N America, CP, 5.860%(a), 05/08/00 2,696,924
2,700,000 Du Pont (ei) de Nemours & Co., CP, 6.020%(a),
05/04/00 2,698,646
6,000,000 FCE Bank PLC, CP, 6.000%(a), 05/11/00 5,990,000
5,700,000 FCE Bank PLC, CP, 6.010%(a), 05/05/00 5,696,194
5,000,000 FCE Bank PLC, CP, 6.010%(a), 05/23/00 4,981,636
5,800,000 FCE Bank PLC, CP, 6.070%(a), 05/04/00 5,797,066
5,000,000 Ford Motor Credit Corp., CP, 6.020%(a), 05/03/00 4,998,328
2,700,000 Ford Motor Credit Corp., CP, 6.030%(a), 06/09/00 2,682,362
** 5,000,000 France Telecom, CP, 6.080%(a), 06/02/00 4,972,978
8,500,000 General Electric Credit Corp., CP, 6.050%(a),
05/25/00 8,465,717
5,000,000 General Electric Capital Corp., CP, 6.050%, 05/03/00 4,998,319
2,700,000 General Electric Capital Corp., CP, 5.910%(a),
06/02/00 2,685,816
2,700,000 General Motors Acceptance Corp., CP, 5.780%(a),
05/12/00 2,695,232
1,000,000 General Motors Acceptance Corp., CP, 6.050%(a),
05/03/00 999,664
4,975,000 Golden Peanut Co., CP, 6.010%(a), 05/09/00 4,968,356
5,500,000 Halifax PLC, CP, 5.990%(a), 05/10/00 5,491,764
2,700,000 International Lease Finance Corp., CP, 5.880%(a),
05/25/00 2,689,416
** 7,500,000 Invensys PLC, CP, 6.020%(a), 05/02/00 7,498,746
** 7,500,000 Invensys PLC, CP, 6.020%(a), 05/02/00 7,498,746
** 5,500,000 Invensys PLC, CP, 6.080%(a), 05/30/00 5,473,062
** 5,000,000 Marsh & McLennan, CP, 6.000%(a), 05/08/00 4,994,167
** 4,500,000 Marsh & McLennan, CP, 6.100%(a), 05/16/00 4,488,563
The accompanying notes are a integral part of these financial statements.
32 FREMONT MUTUAL FUNDS
<PAGE>
FREMONT GLOBAL FUND
APRIL 30, 2000 (UNAUDITED)
STATEMENT OF INVESTMENTS IN SECURITIES AND NET ASSETS
Value
Shares Security Description (Note 1)
--------------------------------------------------------------------------------
SHORT TERM SECURITIES (CONT.)
$ 700,000 Motorola, Inc. Discount Note, CP, 6.050%(a),
05/26/00 $ 697,059
6,000,000 National Rural Utilities, CP, 6.000%(a),
05/01/00 6,000,000
4,500,000 New York Times, CP, 6.080%(a), 05/12/00 4,491,640
**19,500,000 Swiss Re Financial Products, CP, 6.100%(a),
05/01/00 19,500,000
6,000,000 Toyota Motor Credit Puerto Rico, CP, 6.020%(a),
05/16/00 5,984,950
2,700,000 Toyota Motor Credit Corp., CP, 5.840%(a),
05/15/00 2,693,868
5,115,000 Transamerica Finance Corp., CP, 6.050%(a),
05/08/00 5,108,983
5,000,000 Transamerica Finance Corp., CP, 6.070%(a),
05/22/00 4,985,668
2,700,000 Transamerica Finance Corp., CP, 5.920%(a),
06/13/00 2,680,908
2,120,000 Transport Marit Mex, SP, 8.500%(a), 10/15/00 2,077,600
4,930,000 U.S. Treasury Bill, 5.770%, 06/22/00 4,889,623
2,700,000 USAA Capital Corp., CP, 5.990%(a), 05/12/00 2,695,058
** 5,000,000 Wal-Mart Stores, Inc., CP, 6.040%(a), 05/10/00 4,992,450
49,948 Repurchase Agreement, State Street Bank and
Trust Co., 5.400%, 05/01/00 (Maturity Value
$49,970) (Cost $49,948) Collateral: FFCB,
6.000%, 10/01/01 49,948
50,802 Repurchase Agreement, State Street Bank and
Trust Co., 5.400%, 05/01/00 (Maturity Value
$50,824) (Cost $50,802) Collateral: FNMA,
6.000%, 09/24/01 50,802
57,653 Repurchase Agreement, State Street Bank and
Trust Co., 5.400%, 05/01/00 (Maturity Value
$57,679) (Cost $57,653) Collateral: FFCB,
5.700%, 05/17/02 57,653
206,807 Repurchase Agreement, State Street Bank and
Trust Co., 5.400%, 05/01/00 (Maturity Value
$206,899) (Cost $206,807) Collateral: FHLB,
5.400%, 01/17/03 206,807
253,596 Repurchase Agreement, State Street Bank and
Trust Co., 5.400%, 05/01/00 (Maturity Value
$253,708) (Cost $253,596) Collateral: FNMA,
6.625%, 01/15/02 253,596
15,656,453 Repurchase Agreement, State Street Bank and
Trust Co., 5.400%, 05/01/00 (Maturity Value
$15,663,383) (Cost $ 15,656,453) Collateral:
FNMA, 0.000%, 06/29/00 15,656,453
------------
TOTAL SHORT-TERM SECURITIES (Cost $199,102,944) 199,079,168
------------
TOTAL INVESTMENTS (Cost $728,122,941) 99.3% 784,751,495
------------
OTHER ASSETS AND LIABILITIES, NET, 0.7% 5,567,324
------------
NET ASSETS, 100.0% $790,318,819
============
The accompanying notes are a integral part of these financial statements.
FREMONT MUTUAL FUNDS 33
<PAGE>
FREMONT INTERNATIONAL GROWTH FUND
APRIL 30, 2000 (UNAUDITED)
STATEMENT OF INVESTMENTS IN SECURITIES AND NET ASSETS
Country Value
Shares Security Description Code (Note 1)
--------------------------------------------------------------------------------
STOCKS 92.4%
BUSINESS EQUIPMENT & SERVICES 4.0%
* 64,000 Cable & Wireless Optus Ltd. AU $ 206,795
6,700 Teleglobe, Inc. CN 167,387
* 1,600 Epcos AG GM 225,215
900,000 Hung Hing Printing Group HK 349,522
2,000 Fujitsu Ltd. JP 56,650
1,200 Fujitsu Support and Service JP 177,728
* 250 Adecco SA SZ 205,370
132,900 Invensys PLC UK 638,827
100,000 Photobition Group PLC UK 629,511
4,166 Reuters Group PLC, ADR UK 434,566
2,500 Nortel Networks Corp. US 283,125
------------
3,374,696
------------
CAPITAL GOODS 6.4%
27,000 Bombardier, Inc. (Class B) CN 725,591
* 1,276 Bouygues SA FR 814,537
9,500 Siemens AG GM 1,382,136
8,000 Fuji Machine Manufacturing Co., Ltd. JP 556,142
47,000 Mitsubishi Heavy Industries JP 146,182
6,000 Murata Manufacturing Co. Ltd. JP 1,166,343
7,000 THK Co. Ltd. JP 294,826
33,500 Iro AB SW 348,428
------------
5,434,185
------------
CONSUMER DURABLES 8.2%
1,300 Peugeot SA FR 269,044
3,000 Valeo SA FR 166,402
7,800 Bayerische Motoren Werke (BMW) AG GM 204,265
3,000 DaimlerChrysler AG GM 175,677
3,920 Fiat SPA IT 96,133
10,000 Fiat SPA (Preferred) IT 146,397
28,000 Kokusai Electric Co. Ltd. JP 311,025
* 52,000 Mitsubishi Motors JP 183,393
3,500 Nintendo Co. Ltd. JP 583,171
* 72,000 Nissan Motor Co. Ltd. JP 327,242
2,700 Rohm Co. Ltd. JP 904,749
* 19,400 Sony Corp. JP 2,236,665
* 700 Sony Corp., ADR JP 157,937
24,000 Suzuki Motor Co. Ltd. JP 357,456
* 1,750 Geberit International AG SZ 567,925
15,600 GKN PLC UK 215,321
------------
6,902,802
------------
CONSUMER NON-DURABLES 4.7%
45,988 Coca-Cola Amatil Ltd. AU 110,009
800 Christian Dior SA FR 190,226
1,100 Groupe Danone FR 240,555
400 LVMH FR 167,893
3,600 Societe BIC SA FR 143,378
1,000 Asahi Breweries Ltd. JP 10,182
6,000 Uni-Charm Corp. JP 406,554
9,000 PanAmerican Beverages (Class A) MX 147,937
10,900 Heineken NV NL 604,594
5,500 Heineken Holding NV (Class A) NL 185,293
25,795 South African Breweries PLC SA 190,201
198 Compagnie Financiere Richemont AG SZ 481,637
171 Nestle SA (Registered Shares) SZ 301,794
55,300 Cadbury Schweppes PLC UK 375,196
CONSUMER NON-DURABLES (CONT.)
* 68,500 Coca-Cola Beverages PLC UK $ 124,573
423 Reckitt & Coleman PLC UK 4,343
29,200 Tate & Lyle PLC UK 103,028
22,400 Unilever PLC UK 133,699
------------
3,921,092
------------
CONSUMER SERVICES 3.6%
29,765 News Corp. Ltd. AU 378,204
23,300 The Thomson Corp. CN 769,325
1,000 Societe Television Francaise 1 FR 684,703
1,400 Societe Europeene des Satellites LU 216,413
15,000 Singapore Press Holdings Ltd. SG 293,532
1,225 The Selecta Group SZ 376,923
55,000 Rank Group PLC UK 126,738
11,000 Reuters Group PLC UK 195,086
------------
3,040,924
------------
ENERGY 1.3%
101,400 ENI SPA IT 504,351
5,500 Norsk Hydro ASA NO 201,456
27,100 Enterprise Oil PLC UK 200,505
27,300 Shell Transport & Trading Co. UK 222,777
------------
1,129,089
------------
FINANCIAL SERVICES 11.6%
32,889 Australia & New Zealand Banking Group Ltd. AU 227,530
58,820 Westpac Banking Corp. Ltd. AU 375,648
15,235 Lend Lease Corp. Ltd. AU 165,182
44,816 QBE Insurance Group Ltd. AU 188,356
18,000,000 Sanwa International FinBerm Tryst BM 169,120
8,000 Uniao de Bancos Brasileiros SA, GDR BR 199,500
5,900 Clarica Life Insurance Co. CN 115,928
15,000 Manulife Financial Corp. CN 235,483
18,000 Bank Of Nova Scotia CN 410,196
8,000 Canadian Imperial Bank of Commerce CN 209,588
800 Toronto-Dominion Bank CN 18,501
* 600 Fairfax Financial Holdings Ltd. CN 74,949
2,055 Banque Nationale de Paris (BNP) FR 166,120
3,100 Deutsche Bank AG GM 208,030
3,600 Dresdner Bank AG GM 146,979
62,000 Unicredito Italiano SPA IT 251,440
13,700 Assicurazioni Generali SPA IT 389,917
40,000 Sakura Bank Ltd. JP 280,663
* 1,200 Aiful Corp. JP 124,780
43,000 Mitsui Marine and Fire Insurance Co. Ltd. JP 189,068
1,680 Orix Corp. JP 239,800
260 Shohkoh Fund & Co. Ltd. JP 46,450
15,000 The Nomura Securities Co. Ltd. JP 377,673
27,220 ABN Amro Holding NV NL 560,613
12,307 Aegon NV NL 884,629
3,000 ING Groep NV NL 163,729
21,050 DBS GROUP Holdings Ltd. SG 289,826
12,000 Shinhan Bank SK 115,161
23,000 Banco Bilbao Vizcaya SA SP 313,709
7,200 Banco Popular Espanol SA SP 194,445
18,600 ForeningSparbanken AB (Series A) SW 274,582
12,000 Svenska Handelsbanken AB, (Class A) SW 159,032
620 Ubs AG SZ 152,075
101 Schweizerische Rueckversicherungs-
Gesellschaft (Swiss Registered) SZ 162,480
The accompanying notes are a integral part of these financial statements.
34 FREMONT MUTUAL FUNDS
<PAGE>
FREMONT INTERNATIONAL GROWTH FUND
APRIL 30, 2000 (UNAUDITED)
STATEMENT OF INVESTMENTS IN SECURITIES AND NET ASSETS
Country Value
Shares Security Description Code (Note 1)
--------------------------------------------------------------------------------
FINANCIAL SERVICES (CONT.)
24,000 Halifax Group PLC UK $ 224,759
82,500 Lloyds TSB Group PLC UK 804,026
24,500 Royal Bank Of Scotland UK 381,006
42,576 Royal & Sun Alliance Insurance Group PLC UK 238,737
------------
9,729,710
------------
HEALTH CARE 5.0%
* 14,580 Sanofi Synthelabo SA FR 544,224
8,000 Chugai Pharmaceutical Co. Ltd. JP 154,031
10,000 Sankyo Co. Ltd. JP 220,309
7,000 Shionogi & Co. Ltd. JP 108,211
5,000 Takeda Chemical Industries JP 329,075
13,467 Astrazeneca Group PLC SW 564,037
358 Novartis AG (Registered Shares) SZ 500,680
1,650 Synthes-Stratec, Inc. SZ 703,106
* 19,500 Cantab Pharmaceuticals PLC UK 117,450
9,085 Glaxo Wellcome PLC UK 280,448
16,800 AstraZeneca Group PLC UK 702,703
------------
4,224,274
------------
MULTI - INDUSTRY 2.0%
3,700 Vivendi FR 366,048
43,000 Hutchison Whampoa Ltd. HK 626,573
19,000 Sasol Ltd. SA 111,517
182,000 Singapore Technologies Engineering Ltd. SG 255,917
53,800 TI Group PLC UK 292,266
------------
1,652,321
------------
RAW MATERIALS 4.0%
66,929 Broken Hill Proprietary Co. Ltd. AU 721,126
18,700 Upm-Kymmene Oyj FI 484,611
2,300 Compagnie de Saint-Gobain FR 313,918
5,500 Pechiney SA FR 241,055
* 3,600 Degussa-Huels AG GM 104,915
1,300 Henkel KGaA GM 75,299
19,000 Mitsui Chemicals, Inc. JP 151,430
15,000 Nippon Sheet Glass JP 133,296
7,357 DSM NV NL 241,699
6,590 Pohang Iron & Steel Co. Ltd., ADR SK 138,390
1,261 Holderbank Financiere Glarus AG SZ 402,641
58 Holderbank Financiere Glarus AG (Class B) SZ 65,660
12,100 BOC Group PLC UK 198,796
95,100 Corus Group PLC UK 127,863
------------
3,400,699
------------
RETAIL 1.5%
55,310 Coles Myer Ltd. AU 207,221
17,850 Homac Corp. JP 442,821
12,000 Jusco Co. Ltd. JP 222,160
50,000 Mycal Corp. JP 152,735
54,772 New Dixons Group PLC UK 222,202
------------
1,247,139
------------
SHELTER 0.5%
* 10,200 Thyssen Krupp AG GM $ 213,414
19,000 Sekisui House Ltd. JP 174,118
------------
387,532
------------
TECHNOLOGY (COMPONENTS) 14.5%
* 14,600 Infineon Technologies AG GM 993,028
* 7,100 Infineon Technologies AG, ADR GM 481,912
300 Aixtron AG GM 78,018
4,310 Advantest Corp. JP 985,838
3,000 Fanuc Ltd. JP 314,357
4,100 Hirose Electronics JP 495,659
57,000 NEC Corp. JP 1,551,236
33,000 Nikon Corp. JP 1,160,789
5,000 Taiyo Yuden Co. Ltd. JP 354,068
14,000 Tokyo Electron Ltd. JP 2,282,144
800 STMicroelectronics NV NL 152,690
32,980 Asustek Computer, Inc. TW 435,336
28,038 Taiwan Semiconductor Manufacturing
Co. Ltd., ADR TW 1,466,738
79,000 Morgan Crucible Co. PLC UK 313,738
6,200 STMicroelectronics NV, ADR US 1,176,063
------------
12,241,614
------------
TECHNOLOGY (EQUIPMENT) 9.7%
39,800 Nokia AB, ADR FI 2,263,625
8,300 Nokia Oyj FI 476,228
60,000 Johnson Electric Holdings Ltd. HK 483,361
14,000 Kyoden Co. Ltd. JP 426,363
16,000 Hitachi Ltd. JP 191,058
1,870 Keyence Corp. JP 620,564
* 28,800 ASM Lithography Holding NV, ADR NL 1,152,000
5,100 ASM Lithography Holding NV NL 199,409
6,000 Creative Technology Ltd. SG 164,250
2,000 Creative Technology Ltd. SG 48,629
* 2,500 Samsung Electro-Machanics Co. SK 170,083
5,600 Samsung Electronics, GDR SK 903,000
8,600 Ericsson (L.M.) Telephone Co., ADR SW 760,562
100 Telefonaktiebolaget LM Ericsson (Class B) SW 8,913
49,200 British Aerospace PLC UK 304,558
------------
8,172,603
------------
TECHNOLOGY (SOFTWARE) 1.1%
* 4,200 T-Online International AG GM 154,672
2,000 Fuji Soft ABC, Inc. JP 118,486
8,000 Meitec Corp. JP 251,041
41,000 Toshiba Corp. JP 397,741
------------
921,940
------------
TRANSPORTATION 0.2%
30,000 British Airways PLC UK 156,562
------------
156,562
------------
UTILITIES 14.1%
4,000 Telecomunicacoes de Sao Paulo SA BR 101,000
7,900 Deutsche Telekom AG GM 515,773
80,000 Hong Kong Telecommunications HK 188,466
49,000 Telecom Italia Mobile SPA IT 467,835
30,000 Telecom Italia SPA IT 118,118
63,200 Telecom Italia SPA (RNC) IT 398,252
The accompanying notes are a integral part of these financial statements.
FREMONT MUTUAL FUNDS 35
<PAGE>
FREMONT INTERNATIONAL GROWTH FUND
APRIL 30, 2000 (UNAUDITED)
STATEMENT OF INVESTMENTS IN SECURITIES AND NET ASSETS
Country Value
Shares Security Description Code (Note 1)
--------------------------------------------------------------------------------
UTILITIES (CONT.)
14,334 Telecom Italia SPA (Savings Shares) IT $ 200,461
22 DDI Corp. JP 252,522
30 Nippon Telegraph & Telephone JP 372,119
59 NTT Mobile Communication Network, Inc. JP 1,971,582
20,200 Telefonos de Mexico SA (Class L), ADR MX 1,188,013
10,000 Portugal Telecom SA PT 111,571
* 1,500 PT MULTMEDIA - Servicos de
Telecomminacaoes PT 104,683
* 10,000 Telecel-Comunicacoes Pessoais SA PT 158,218
* 44,462 Telefonica SA SP 989,709
1,425 Swisscom AG SZ 502,990
* 1,900 COLT Telecom Group PLC UK 82,662
790,873 Vodafone Group PLC UK 3,607,972
13,161 AstraZeneca Group PLC US 554,407
------------
11,886,353
------------
TOTAL STOCKS (Cost $56,790,452) 77,823,535
------------
SHORT-TERM SECURITIES 5.8%
$ 4,000,000 Swiss Re Financial Products, CP, 6.100%,
05/01/00 4,000,000
855,995 Repurchase Agreement, State Street Bank
and Trust Co., 5.400%, 05/01/00 (Maturity
$856,374) (Cost $855,995) Collateral:
FNMA, 0.000%, 06/29/00 855,995
------------
TOTAL SHORT-TERM SECURITIES (Cost $4,855,995) 4,855,995
------------
TOTAL INVESTMENTS (Cost $61,646,447), 98.2% 82,679,530
------------
OTHER ASSETS AND LIABILITIES, NET, 1.8% 1,516,342
------------
NET ASSETS, 100.0% $ 84,195,872
============
The accompanying notes are a integral part of these financial statements.
36 FREMONT MUTUAL FUNDS
<PAGE>
FREMONT EMERGING MARKETS FUND
APRIL 30, 2000 (UNAUDITED)
STATEMENT OF INVESTMENTS IN SECURITIES AND NET ASSETS
Country Value
Shares Security Description Code (Note 1)
--------------------------------------------------------------------------------
STOCKS 97.5%
BUSINESS EQUIPMENT & SERVICES 1.2%
* 4,800 St Assembley Test Services Ltd. US $ 200,100
------------
200,100
------------
CONSUMER DURABLES 1.3%
* 58,200 Vestel Elektronik Sanayi ve Ticaret AS TU 218,983
------------
218,983
------------
CONSUMER NON-DURABLES 2.3%
24,500 Companhia Cervejaria Brahma, ADR BR 379,750
------------
379,750
------------
CONSUMER SERVICES 2.4%
* 6,400 Grupo Televisa SA, GDR MX 406,000
------------
406,000
------------
ENERGY 5.9%
19,500 Petroleo Brasileiro SA, ADR BR 461,982
* 35,400 Surgutneftegaz, ADR RU 537,195
------------
999,177
------------
FINANCIAL SERVICES 8.1%
* 15,300 Komercni Banka AS, GDR CZ 117,581
* 83,300 Grupo Financiero Banamex Accival SA MX 302,184
47,693 Kookmin Bank SK 515,716
1,350,000 Yapi ve Kredi Bankasi AS TU 430,654
------------
1,366,135
------------
HEALTH CARE 4.8%
37,900 Pliva d.d., GDR CR 473,750
7,600 EGIS Rt. HU 333,637
------------
807,387
------------
MULTI-INDUSTRY 6.0%
25,400 Larsen & Toubro Ltd., GDR IN 347,980
59,200 Sasol Ltd. SA 347,465
134,000 Enka Holding Yatirim AS TU 312,377
------------
1,007,822
------------
RAW MATERIALS 12.7%
13,100 Aracruz Celulose SA BR 244,806
26,300 KGHM Polska Miedz SA, GDR PO 383,980
51,700 Sappi Ltd. SA 362,152
10,500 Pohang Iron & Steel Co. Ltd. SK 221,813
* 741,600 Phoenix Pulp & Paper Public Co. Ltd. TH 618,568
80,000 Billiton PLC UK 297,192
------------
2,128,511
------------
SHELTER 0.7%
* 571,600 Golden Land Property Development
Public Co. Ltd. TH 123,135
------------
123,135
------------
TECHNOLOGY (COMPONENTS) 23.2%
* 32,300 Hyundai Electronics Industries Co. SK $ 512,260
* 16,000 Korea Data Systems SK 129,759
3,730 Samsung Electronics SK 1,008,335
33,000 Asustek Computer, Inc. TW 365,648
* 14,300 Far Eastern Textile Ltd. TW 271,700
* 45,000 Hon Hai Precision Industry TW 433,894
* 110,000 Siliconware Precision Industries Co. TW 249,877
* 92,000 Taiwan Semiconductor Manufacturing Co. TW 592,384
* 55,000 Universal Scientific Industrial Co. Ltd TW 208,531
56,000 WYSE Technology Taiwan Ltd. TW 120,804
------------
3,893,192
------------
TECHNOLOGY (EQUIPMENT) 1.5%
* 308,000 United Broadcasting Corp. (Foreign Registered) TH 246,788
------------
246,788
------------
TECHNOLOGY (SOFTWARE) 4.8%
2,380 Infosys Technologies Ltd. IN 483,140
* 50,545 Dimension Data Holdings Ltd. SA 331,699
------------
814,839
------------
UTILITIES 22.6%
19,100 Embratel Participacoes SA BR 429,750
3,000 Telecomunicacoes Brasileiras
SA-Telebras, ADR BR 354,563
* 69,600 China Telecom (Hong Kong) Ltd. HK 502,619
* 11,000 Videsh Sanchar Nigam Ltd., GDR IN 207,900
* 25,500 Partner Communications Co. Ltd. IS 272,531
7,400 Telefonos de Mexico SA (Series L), ADR MX 435,213
18,400 Korea Electric Power Corp., ADR SK 301,300
8,500 Korea Telecom Corp. SK 293,250
19,000 SK Telecom Co. Ltd., ADR SK 609,187
13,600 Compania Anonima Nacional Telefones
de Venezuela VZ 394,400
------------
3,800,713
------------
TOTAL STOCKS (COST $15,464,887) 16,392,532
------------
SHORT TERM SECURITIES 0.0%
$ 91 Repurchase Agreement, State Street Bank and
Trust Co., 5.400%, 05/01/00 (Maturity $91)
(Cost $91) Collateral: FNMA, 6.600%, 06/07/02 91
------------
TOTAL SHORT-TERM SECURITIES (Cost $91) 91
------------
TOTAL INVESTMENTS (Cost $15,464,978) 97.5% 16,392,623
------------
OTHER ASSETS AND LIABILITIES, NET, 2.5% 413,877
------------
NET ASSETS, 100.0% $ 16,806,500
============
The accompanying notes are a integral part of these financial statements.
FREMONT MUTUAL FUNDS 37
<PAGE>
FREMONT U.S. MICROCAP FUND
APRIL 30, 2000 (UNAUDITED)
STATEMENT OF INVESTMENTS IN SECURITIES AND NET ASSETS
Value
Shares Security Description (Note 1)
--------------------------------------------------------------------------------
STOCKS 75.2%
BUSINESS EQUIPMENT & SERVICES 16.4%
* 674,700 Boston Communications Group, Inc. $ 6,156,638
* 472,300 Championship Auto Racing Teams, Inc. 9,564,075
* 300,700 COMARCO, Inc. 11,219,869
* 255,100 Computer Outsourcing Services, Inc.(b) 5,404,931
* 84,000 Corporate Exec. Board Co. 4,935,000
* 347,500 CoStar Group, Inc. 8,334,570
* 105,200 infoUSA Inc. 611,475
* 200,900 Interep National Radio Sales, Inc. 1,155,175
* 234,400 Leapnet, Inc. 966,900
* 64,300 Media 100, Inc. 1,555,256
* 500,300 Metawave Communications Corp. 6,628,975
* 118,000 NetCreations, Inc. 4,041,500
* 539,300 Nucentrix Broadband Networks, Inc. 13,448,794
* 156,200 NuCO2, Inc. 1,191,025
342,100 Oshkosh Truck Corp. 10,776,150
* 607,800 Romac International, Inc. 6,267,938
* 300,700 Shuffle Master, Inc. 3,721,163
* 644,100 Spectrum Control, Inc.(b) 6,481,256
* 732,000 TeleTech Holdings, Inc. 23,881,500
* 1,027,400 The Netplex Group, Inc.(b) 4,045,388
* 439,100 United Shipping And Technology, Inc. 5,077,094
* 559,600 VTEL Corp. 2,343,325
------------
137,807,997
------------
CAPITAL GOODS 4.3%
* 603,800 Aaon, Inc.(b) 12,679,800
* 358,300 Adept Technology, Inc. 4,210,025
* 494,800 IMPCO Technologies, Inc.(b) 10,019,700
* 351,800 Zygo Corp. 8,970,900
------------
35,880,425
------------
CONSUMER DURABLES 4.4%
* 714,400 Jore Corp.(b) 4,197,100
* 641,400 Spectra-Physics Lasers, Inc. 32,711,400
------------
36,908,500
------------
CONSUMER NON-DURABLES 1.1%
* 2,247,900 Hanover Direct, Inc. 3,933,825
* 416,500 McNaughton Apparel Group, Inc. 3,566,281
* 126,700 Tefron Ltd. 1,940,094
------------
9,440,200
------------
CONSUMER SERVICES 4.8%
* 541,800 American Classic Voyages Co. 10,869,863
1,123,400 Cash America International, Inc. 10,110,600
* 369,500 Cinar Corp. (Class B) 1,293,250
* 895,200 Homeseekers.com, Inc. 6,602,100
* 232,600 Internet.com Corp. 4,419,400
* 457,800 LoJack Corp. 3,290,438
* 395,500 ZipLink, Inc. 3,534,781
------------
40,120,432
------------
ENERGY 0.8%
* 191,100 UTI Energy Corp. $ 6,640,725
------------
6,640,725
------------
HEALTH CARE 12.2%
* 416,450 ArthroCare Corp. 42,425,844
* 292,600 Cytyc Corp. 13,093,850
* 450,500 Endocare, Inc. 7,433,250
* 665,100 Fusion Medical Technologies, Inc.(b) 11,639,250
* 712,300 Gene Logic, Inc. 19,143,063
* 592,300 InnerDyne, Inc. 2,582,058
* 407,800 NeoPharm, Inc. 6,244,437
------------
102,561,752
------------
RAW MATERIALS 0.3%
347,850 Northern Technologies International Corp.(b) 2,391,469
------------
2,391,469
------------
RETAIL 5.4%
* 433,900 Buca, Inc. 6,535,619
* 400,500 David's Bridal, Inc. 4,605,750
* 503,700 Genesco, Inc. 6,516,619
* 123,300 InterTAN, Inc. 1,703,081
* 685,600 Rent-Way, Inc. 17,782,750
* 110,700 REX Stores Corp. 2,781,338
* 66,400 SkyMall, Inc. 232,400
* 147,000 The Children's Place Retail Stores, Inc. 3,270,750
* 242,700 Twinlab Corp. 1,820,250
------------
45,248,557
------------
SHELTER 0.6%
* 558,800 Modtech Holdings, Inc. 5,483,225
------------
5,483,225
------------
TECHNOLOGY (COMPONENTS) 11.4%
* 276,200 Anaren Microwave, Inc. 28,724,800
* 339,800 Blue Wave Systems, Inc. 4,353,687
* 215,500 California Amplifier, Inc. 5,818,500
* 1,004,100 California Micro Devices Corp.(b) 21,086,100
* 249,900 CyberOptics Corp. 9,558,675
* 778,500 Datalink Corp.(b) 12,942,562
* 129,400 Internet Commerce Corp. 2,903,412
* 462,800 Merix Corp.(b) 10,123,750
* 4,300 Tircord Systems, Inc. 53,750
------------
95,565,236
------------
TECHNOLOGY (EQUIPMENT) 8.2%
* 329,500 Ancor Communications, Inc. 9,946,781
* 476,850 Information Resource Engineering, Inc. 12,278,887
242,900 Keithley Instruments, Inc 13,541,675
* 110,800 MTI Technology Corp. 1,717,400
* 570,150 Netopia, Inc. 23,803,762
* 165,100 Nova Measuring Instruments Ltd. 2,373,312
* 23,100 Photon Dynamics, Inc. 1,709,400
* 468,500 Princeton Video Image, Inc. 3,513,750
------------
68,884,967
------------
The accompanying notes are a integral part of these financial statements.
38 FREMONT MUTUAL FUNDS
<PAGE>
FREMONT U.S. MICROCAP FUND
APRIL 30, 2000 (UNAUDITED)
STATEMENT OF INVESTMENTS IN SECURITIES AND NET ASSETS
Value
Shares Security Description (Note 1)
--------------------------------------------------------------------------------
TECHNOLOGY (SOFTWARE) 4.4%
* 485,710 Exigent International, Inc.(b) $ 1,183,918
* 606,300 MDSI Mobile Data Solutions, Inc.(b) 21,220,500
* 144,300 New Era of Networks, Inc. 4,527,412
* 123,100 PC-Tel, Inc. 4,123,850
* 148,800 Puma Technology, Inc. 4,557,000
* 102,900 VocalTec Communications Ltd. 1,826,475
------------
37,439,155
------------
UTILITIES 0.9%
* 1,048,900 Cadiz, Inc. 7,604,525
------------
7,604,525
------------
TOTAL STOCKS (Cost $505,626,113) 631,977,165
------------
SHORT-TERM SECURITIES 25.6%
$215,709,856 Repurchase Agreement, State Street Bank and
Trust Co., 5.400%, 05/01/00 (Maturity Value
$215,805,334) (Cost $215,709,856) Collateral:
FHLB, 6.372%, 02/07/01, FHLMC, 5.150%,
02/02/01, FNMA, 6.000%, 11/15/01 215,709,856
------------
TOTAL SHORT-TERM SECURITIES (Cost $215,709,856), 215,709,856
------------
TOTAL INVESTMENTS (Cost $721,335,969), 100.8% 847,687,021
------------
OTHER ASSETS AND LIABILITIES, NET, (0.8)% (6,711,429)
------------
NET ASSETS, 100.0% $840,975,592
============
The accompanying notes are a integral part of these financial statements.
FREMONT MUTUAL FUNDS 39
<PAGE>
FREMONT U.S. SMALL CAP FUND
APRIL 30, 2000 (UNAUDITED)
STATEMENT OF INVESTMENTS IN SECURITIES AND NET ASSETS
Value
Shares Security Description (Note 1)
--------------------------------------------------------------------------------
STOCKS 80.3%
BUSINESS EQUIPMENT & SERVICES 20.6%
* 17,700 CoStar Group, Inc. $ 424,523
41,400 Elcor Corp. 1,317,037
* 25,700 eLoyalty Corp. 422,444
18,900 International Speedway Corp. 812,700
* 67,200 Modis Professional Services, Inc. 508,200
* 6,792 Nova Corp. 214,797
55,600 Penton Media, Inc. 1,462,975
* 10,000 Sanchez Computer Associates 193,750
* 46,100 ShopNow.com, Inc. 293,888
* 16,200 Speedway Motorsports,Inc. 387,788
* 23,700 St Assembley Test Services Ltd. 987,994
* 62,900 Stamps.com, Inc. 1,006,400
* 57,400 TCI Satellite Entertainment, Inc. 602,700
* 142,300 TeleTech Holdings, Inc. 4,642,537
------------
13,277,733
------------
CONSUMER DURABLES 2.1%
82,800 Callaway Golf Co. 1,376,550
------------
1,376,550
------------
CONSUMER NON-DURABLES 5.8%
* 59,800 Guess?, Inc. 1,644,500
* 469,800 Hanover Direct, Inc. 822,150
* 71,000 NBTY, Inc. 1,260,250
------------
3,726,900
------------
CONSUMER SERVICES 2.5%
* 23,800 ACTV, Inc. 431,375
* 28,050 American Classic Voyages Co. 562,753
* 74,000 Cinar Corp. (Class B) 259,000
* 17,400 Internet.com Corp. 330,600
------------
1,583,728
------------
ENERGY 0.5%
* 8,600 Nabors Industries, Inc. 339,163
------------
339,163
------------
HEALTH CARE 9.9%
* 46,000 Advance Paradigm, Inc. 575,000
* 21,000 ArthroCare Corp. 2,139,375
* 21,900 Cytyc Corp. 980,025
* 42,800 Gene Logic, Inc. 1,150,250
* 12,000 NeoPharm, Inc. 183,750
* 54,300 Oxford Health Plans, Inc. 1,031,700
* 22,900 Sunrise Assisted Living, Inc. 360,675
------------
6,420,775
------------
RETAIL 5.8%
48,800 CBRL Group, Inc. 677,100
* 5,200 CEC Entertainment, Inc. 156,000
* 62,500 Rent-Way, Inc. 1,621,094
* 22,000 ValueVision International, Inc. 438,625
* 27,900 Venator Group, Inc. 331,312
* 13,100 Zale Corp. 540,375
------------
3,764,506
------------
TECHNOLOGY (COMPONENTS) 12.4%
* 36,500 Anaren Microwave, Inc. $ 3,796,000
* 73,400 Cabletron Systems, Inc. 1,679,025
* 18,000 Copper Mountain Networks, Inc. 1,500,750
25,600 Methode Electronics, Inc. 1,066,800
------------
8,042,575
------------
TECHNOLOGY (EQUIPMENT) 4.8%
* 25,200 Ancor Communications, Inc. 760,725
* 8,900 ATMI, Inc. 342,650
* 48,000 Netopia, Inc. 2,004,000
------------
3,107,375
------------
TECHNOLOGY (SOFTWARE) 11.0%
* 18,350 Critical Path, Inc. 1,066,594
* 12,600 Lightspan, Inc. 104,737
* 14,100 Marimba, Inc. 279,356
* 26,200 New Era of Networks, Inc. 822,025
* 42,100 PC-Tel, Inc. 1,410,350
* 10,400 Peregrine Systems, Inc. 250,250
* 9,600 Puma Technology, Inc. 294,000
* 28,100 SmartForce Public Ltd. Co. 1,341,775
* 6,600 VeriSign, Inc. 919,875
* 18,900 Websense, Inc. 614,250
------------
7,103,212
------------
UTILITIES 4.9%
* 41,000 Alamosa PCS Holdings, Inc. 1,168,500
* 21,600 Calpine Corp. 1,976,400
------------
3,144,900
------------
TOTAL STOCKS (Cost $44,858,253) 51,887,417
------------
SHORT-TERM SECURITIES 20.1%
$ 13,006,762 Repurchase Agreement, State Street Bank &
Trust Company, 5.400%, 05/01/00, (Maturity Value
$13,012,519) (Cost $13,006,762) Collateral:
FNMA 0.000%, 06/29/00 13,006,762
------------
TOTAL SHORT-TERM SECURITIES (Cost $13,006,762) 13,006,762
------------
TOTAL INVESTMENTS (Cost $57,865,015), 100.4% 64,894,179
------------
OTHER ASSETS AND LIABILITIES, NET, (0.4)% (239,768)
------------
NET ASSETS, 100.0% $ 64,654,411
============
The accompanying notes are a integral part of these financial statements.
40 FREMONT MUTUAL FUNDS
<PAGE>
FREMONT GROWTH FUND
APRIL 30, 2000 (UNAUDITED)
STATEMENT OF INVESTMENTS IN SECURITIES AND NET ASSETS
Value
Shares Security Description (Note 1)
--------------------------------------------------------------------------------
STOCKS 93.9%
BUSINESS EQUIPMENT & SERVICES 3.7%
* 32,000 America Online, Inc. $ 1,914,000
* 17,500 Insituform Technologies, Inc. 587,344
* 10,000 Network Appliance, Inc. 739,375
* 42,900 Republic Services, Inc 587,194
* 8,000 Yahoo!, Inc. 1,042,000
------------
4,869,913
------------
CAPITAL GOODS 5.4%
16,000 Boeing Co. 635,000
32,800 General Electric Co. 5,157,800
105,000 Worthington Industries, Inc. 1,299,375
------------
7,092,175
------------
CONSUMER DURABLES 2.0%
* 48,300 Ford Motor Co. 2,641,406
------------
2,641,406
------------
CONSUMER NON-DURABLES 4.4%
18,400 Anheuser Busch Cos., Inc. 1,298,350
12,800 Coca-Cola Co. 602,400
10,000 Eastman Kodak Co. 559,375
30,100 Pepsico, Inc. 1,104,294
81,300 Philip Morris Cos., Inc. 1,778,437
8,400 Procter & Gamble Co. 500,850
------------
5,843,706
------------
CONSUMER SERVICES 0.6%
* 7,000 CBS Corp. 411,250
24,400 Wiley (John) & Sons (Class A) 420,900
------------
832,150
------------
ENERGY 5.4%
25,500 Apache Corp. 1,235,156
9,000 El Paso Energy Corp. 382,500
55,000 Exxon Mobil Corp. 4,272,812
49,000 USX-Marathon Group 1,142,312
------------
7,032,780
------------
FINANCIAL SERVICES 15.2%
11,250 American International Group, Inc. 1,233,984
28,000 AXA Financial, Inc. 913,500
28,700 Bank of America Corp. 1,406,300
15,000 Bank One Corp. 457,500
14,000 Capital One Financial Corp. 612,500
17,500 Chase Manhattan Corp. 1,261,094
45,700 Citigroup, Inc. 2,716,294
21,200 Federal Home Loan Mortgage Corp. 973,875
36,300 Federal National Mortgage Association 2,189,344
57,600 FleetBoston Financial Corp. 2,041,200
23,000 GATX Corp. 822,250
18,000 Household International, Inc. 751,500
32,300 MBNA Corp. 857,969
16,400 Morgan Stanley, Dean Witter and Co. 1,258,700
18,500 PNC Bank Corp. 807,062
14,000 Providian Financial Corp. 1,232,875
12,000 Washington Mutual, Inc. 306,750
------------
19,842,697
------------
HEALTH CARE 8.2%
18,800 Abbott Laboratories $ 722,625
* 11,000 Amgen, Inc. 616,000
* 7,000 Andrx Corp. 358,312
18,700 Bristol-Myers Squibb Co. 980,581
14,000 Cardinal Health, Inc. 770,875
11,600 Johnson & Johnson 957,000
11,200 Lilly (Eli) & Co. 865,900
25,000 Merck & Co. 1,737,500
42,100 Pfizer, Inc. 1,773,462
17,500 Schering Plough Corp. 705,469
10,900 Warner-Lambert Co. 1,240,556
------------
10,728,280
------------
MULTI-INDUSTRY 0.6%
14,500 Honeywell International, Inc. 812,000
------------
812,000
------------
RAW MATERIALS 1.2%
3,300 Dow Chemical Co. 372,900
22,000 Weyerhaeuser Co. 1,175,625
------------
1,548,525
------------
RETAIL 6.6%
* 32,500 Abercrombie & Fitch Co. (Class A) 357,500
* 10,000 Best Buy Co., Inc. 807,500
19,500 Gap, Inc. 716,625
36,750 Home Depot, Inc. 2,060,297
17,100 Lowe's Cos., Inc. 846,450
* 19,100 Papa John's Intl, Inc. 525,250
11,200 Target Corp. 745,500
46,700 Wal-Mart Stores, Inc. 2,586,012
------------
8,645,134
------------
SHELTER 0.6%
26,000 The St. Joe Co. 749,125
------------
749,125
------------
TECHNOLOGY (COMPONENTS) 11.3%
* 6,000 Analog Devices, Inc. 460,875
* 68,000 Cisco Systems, Inc. 4,714,313
* 11,300 EMC Corp/Mass 1,569,994
36,000 Intel Corp. 4,565,250
31,600 Lucent Technologies, Inc. 1,965,125
* 4,000 Micron Technology, Inc. 557,000
* 12,000 Solectron Corp. 561,750
* 5,000 Xilinx, Inc. 366,250
------------
14,760,557
------------
The accompanying notes are a integral part of these financial statements.
FREMONT MUTUAL FUNDS 41
<PAGE>
FREMONT GROWTH FUND
APRIL 30, 2000 (UNAUDITED)
STATEMENT OF INVESTMENTS IN SECURITIES AND NET ASSETS
Shares/ Value
Face Amount Security Description (Note 1)
--------------------------------------------------------------------------------
TECHNOLOGY (EQUIPMENT) 10.3%
* 12,000 Applied Materials, Inc. $ 1,221,750
22,000 Compaq Computer Corp. 643,500
4,000 Corning, Inc. 790,000
* 35,800 Dell Computer Corp. 1,794,475
11,400 Hewlett-Packard Co. 1,539,000
17,700 International Business Machines Corp. 1,975,763
7,500 Motorola, Inc. 892,969
* 17,300 Sun Microsystems, Inc. 1,590,519
* 10,000 Tellabs, Inc. 548,125
9,500 Texas Instruments, Inc. 1,547,313
6,800 United Technologies Corp. 422,875
21,000 Xerox Corp. 555,188
------------
13,521,477
------------
TECHNOLOGY (SOFTWARE) 6.3%
* 8,000 Citrix Systems, Inc. 488,500
11,600 Computer Associates International, Inc. 647,425
* 16,300 Compuware Corp. 204,769
* 52,700 Microsoft Corp. 3,675,825
* 29,300 Oracle Systems Corp. 2,342,169
8,000 VERITAS Software Corp. 858,125
------------
8,216,813
------------
TRANSPORTATION 0.4%
13,000 SkyWest, Inc. 547,625
------------
547,625
------------
UTILITIES 11.7%
* 6,400 AES Corp. 575,600
32,300 AT&T Corp. 1,508,006
* 71,500 Azurix Corp. 500,500
15,700 Bell Atlantic Corp. 930,225
19,100 BellSouth Corp. 929,931
* 13,500 Calpine Corp. 1,235,250
12,900 GTE Corp. 873,975
54,000 KeySpan Corp. 1,586,250
* 43,350 MCI WorldCom, Inc. 1,969,716
* 10,500 QUALCOMM, Inc. 1,138,594
34,500 SBC Communications, Inc. 1,511,531
76,000 Texas Utilities Co. 2,560,250
------------
15,319,828
------------
TOTAL STOCKS (Cost $91,532,421) 123,004,191
------------
SHORT-TERM SECURITIES 5.9%
$ 65,000 U.S. Treasury Bill, 5.820%, 6/22/00 64,470
250,000 U.S. Treasury Bill, 6.100%, 06/22/00 247,934
6,500,000 Swiss Re Financial Products, CP, 6.100%, 05/01/00 6,500,000
893,890 Repurchase Agreement, State Street Bank and Trust
Co., 5.400%, 05/01/00 (Maturity Value $894,287)
(Cost $893,890) Collateral: FNMA, 0.000%, 6/29/00 893,890
------------
TOTAL SHORT-TERM SECURITIES (Cost $7,706,294) 7,706,294
------------
TOTAL INVESTMENTS (Cost $99,238,715) 99.8% 130,710,485
------------
OTHER ASSETS AND LIABILITIES, NET, 0.2% 219,840
------------
NET ASSETS, 100.0% $130,930,325
============
The accompanying notes are a integral part of these financial statements.
42 FREMONT MUTUAL FUNDS
<PAGE>
FREMONT REAL ESTATE SECURITIES FUND
APRIL 30, 2000 (UNAUDITED)
STATEMENT OF INVESTMENTS IN SECURITIES AND NET ASSETS
Value
Shares Security Description (Note 1)
--------------------------------------------------------------------------------
STOCKS 98.5%
REITs (APARTMENTS) 7.8%
1,200 Apartment Investment & Management Co. $ 47,700
20,000 Archstone Communities Trust 432,500
38,315 Equity Residential Properties Trust 1,743,333
2,000 Essex Property Trust, Inc. 77,250
10,000 Gables Residential Trust 240,000
------------
2,540,783
------------
REITs (COMMUNITY CENTERS) 11.4%
14,100 Agree Realty Corp. 200,044
163,500 Burnham Pacific Properties, Inc. 1,205,812
31,800 Developers Diversified Realty Corp. 482,962
104,500 Malan Realty Investors, Inc. 1,306,250
37,900 Ramco-Gershenson Properties Trust 540,075
------------
3,735,143
------------
REITs (DIVERSIFIED) 5.6%
274,040 First Union Real Estate Investments 682,733
47,900 Glenborough Realty Trust, Inc. 706,525
11,200 Vornado Realty Trust 386,400
------------
1,775,658
------------
REITs (HEALTH CARE) 2.1%
* 53,100 Brookdale Living Communities, Inc. 683,662
------------
683,662
------------
REITs (HOTELS) 4.1%
2,900 FelCor Suite Hotels, Inc. 56,913
10,000 Hospitality Properties Trust 222,500
52,400 RFS Hotel Investors, Inc. 635,350
55,000 Winston Hotels, Inc. 422,813
------------
1,337,576
------------
REITs (OFFICE) 41.1%
505,000 Banyan Strategic Realty Trust 2,887,969
20,600 Boston Properties, Inc. 718,425
75,000 Brandywine Realty Trust 1,303,125
5,400 CarrAmerica Realty Corp. 128,250
20,000 Cornerstone Properties, Inc. 365,000
105,900 Corporate Office Properties Trust 913,387
42,900 Equity Office Properties Trust 1,166,344
50,000 Highwoods Properties, Inc. 1,134,374
123,000 Koger Equity, Inc. 2,152,500
42,400 Mack-Cali Realty Corp. 1,091,800
1,000 Parkway Properties, Inc. 30,000
34,300 Prentiss Properties Trust 814,625
50,500 Prime Group Realty Trust 748,031
------------
13,453,830
------------
REITs (OFFICE/INDUSTRIAL) 10.1%
140,200 American Industrial Properties REIT 1,752,500
20,000 Duke Realty Investments, Inc. 433,750
10,000 Liberty Property Trust 247,500
12,900 PS Business Parks, Inc 287,025
30,000 Reckson Associates Realty Corp. 601,875
------------
3,322,650
------------
REITs (REGIONAL MALLS) 4.9%
12,500 General Growth Properties, Inc. $ 410,938
68,200 Glimcher Realty Trust 937,750
10,000 Simon Property Group, Inc. 253,750
------------
1,602,438
------------
REITs (REIT INDUSTRIAL) 2.3%
5,000 First Industrial Realty Trust, Inc. 150,313
30,000 ProLogis Trust 590,625
------------
740,938
------------
REITs (SELF STORAGE) 1.5%
22,600 Public Storage, Inc. 505,675
------------
505,675
------------
NON-REITs (DIVERSIFIED) 5.3%
* 25,000 Catellus Development Corp. 325,000
* 157,500 Wellsford Real Properties, Inc. 1,397,812
------------
1,722,812
------------
NON-REITs (HOTELS) 1.0%
* 100,000 Homestead Village, Inc. 325,000
------------
325,000
------------
NON-REITs (OFFICE) 1.3%
5,200 Pacific Gateway Properties 51,025
23,600 TrizecHahn Corp. 383,500
------------
434,525
------------
NON-REITs (OTHER) 0.0%
* 887 Imperial Parking Corp. 11,309
------------
11,309
------------
TOTAL STOCKS (Cost $32,448,761) 32,191,999
------------
SHORT TERM SECURITIES 1.2%
$ 387,995 Repurchase Agreement, State Street Bank and
Trust Co., 5.400%, 05/01/00 (Maturity Value
$388,167) (Cost $387,995) Collateral: FNMA,
0.000%, 06/29/00 387,995
------------
TOTAL SHORT TERM SECURITIES (Cost $387,995) 387,995
------------
TOTAL INVESTMENTS (Cost $32,836,756) 99.7% 32,579,994
------------
OTHER ASSETS AND LIABILITIES, NET, 0.3% 155,263
------------
NET ASSETS, 100.0% $ 32,735,257
============
The accompanying notes are a integral part of these financial statements.
FREMONT MUTUAL FUNDS 43
<PAGE>
FREMONT BOND FUND
APRIL 30, 2000 (UNAUDITED)
STATEMENT OF INVESTMENTS IN SECURITIES AND NET ASSETS
<TABLE>
<CAPTION>
Coupon Maturity Value
Face Amount Issuer Rate Date (Note 1)
------------------------------------------------------------------------------------------------------------------
BONDS 125.4%
COLLATERALIZED MORTGAGE OBLIGATIONS 33.0%
<S> <C> <C> <C> <C>
$ 5,000,000 BA Mortgage Securities, Inc., 1998-4, PAC-1 REMIC .......... 6.600% 08/25/28 $ 4,733,500
1,847,279 Chase Mortgage Finance Corp. ............................... 6.204% 04/25/25 1,867,932
500,000 Chase Mortgage Finance Corp. ............................... 6.750% 10/25/28 460,706
1,162,903 Chase Mortgage Finance Corp. ............................... 7.000% 07/25/24 1,155,868
682,927 FHLMC CMO, 1018 0z, Pac-1 (11) REMIC ....................... 7.000% 11/15/20 663,709
8,912,271 FNMA CMO,1993-21-z ......................................... 7.200% 05/25/23 8,260,516
15,000,000 FNMA CMO, 1992-131ka, Pac(11) REMIC ........................ 8.000% 01/25/22 15,044,585
200,000 FNMA CMO, 1993-11j, Pac REMIC .............................. 7.500% 02/25/08 197,406
612,620 Morgan Stanley Mortgage Trust CMO, 40-8, PAC (11) REMIC .... 7.000% 07/20/21 603,746
1,988,499 Nascor 1999-25-a4 .......................................... 6.500% 10/25/29 1,773,105
4,900,000 PNC Mortgage Securities Corp. CMO, 1999-4-1a8 .............. 6.200% 06/25/29 4,613,693
10,000,000 Residential Funding Mortgage Securities I 1997-S17 A5 ...... 7.000% 11/25/27 9,345,540
1,817,946 Securitized Asset Sales, lnc. CMO, 1993-2A9, PAC (11) REMIC 6.200% 07/25/08 1,766,244
3,000,000 Sierra Pac Res New NT FLT 144A ............................. 6.942% 04/20/02 3,000,000
------------
53,486,550
------------
FIXED RATE AND ADJUSTABLE RATE MORTGAGE SECURITIES 30.9%
310,372 FHLMC ...................................................... 6.500% 01/01/26 291,749
120,789 FHLMC ...................................................... 6.500% 03/01/26 113,542
367,232 FHLMC ...................................................... 6.500% 04/01/26 345,198
201,747 FHLMC ...................................................... 6.500% 04/01/26 189,642
118,675 FHLMC ...................................................... 6.500% 04/01/26 111,555
135,541 FHLMC ...................................................... 6.500% 05/01/26 127,408
180,389 FHLMC ...................................................... 8.250% 08/01/17 182,620
2,973,402 FHLMC ...................................................... 6.480% 07/15/28 2,987,792
5,301,000 FHLMC ...................................................... 6.500% 01/25/15 5,118,009
8,000,000 FHLMC ...................................................... 6.500% 09/25/18 7,579,040
4,223,035 FNMA ....................................................... 6.500% 05/18/23 4,126,876
249,661 FNMA ARM ................................................... 7.447% 11/01/23 256,292
8,000,000 GNMA ....................................................... 6.500% 06/20/28 6,971,080
3,553,720 GNMA ....................................................... 6.000% 01/15/24 3,230,776
1,468,425 GNMA ....................................................... 6.000% 01/15/24 1,334,981
33,349 GNMA ....................................................... 6.500% 02/15/24 31,262
703,161 GNMA ....................................................... 6.500% 03/15/24 659,170
31,256 GNMA ....................................................... 6.500% 06/15/24 29,300
663,512 GNMA ARM ................................................... 7.125% 10/20/25 670,786
1,800,000 GNMA I TBA ................................................. 6.500% 05/22/30 1,686,096
685,697 GNMA II ARM ................................................ 6.375% 03/20/24 689,754
1,010,215 GNMA II ARM ................................................ 6.750% 08/20/25 1,014,085
1,019,484 GNMA II ARM ................................................ 7.125% 11/20/26 1,028,747
172,806 GNMA II ARM ................................................ 7.125% 11/20/24 174,990
6,054,926 GNMA II ARM ................................................ 7.125% 10/20/27 6,105,250
138,271 GNMA II ARM ................................................ 6.375% 04/20/21 139,589
2,500,000 GNMA TBA ................................................... 7.000% 05/22/30 2,391,797
2,250,000 GNMA ....................................................... 7.000% 05/22/30 2,163,510
300,000 GNMA ....................................................... 8.000% 05/22/30 300,609
------------
50,051,505
------------
FOREIGN CORPORATE BONDS 7.9%
800,000 Abbey Natl Cap Trust ....................................... 8.963% 12/29/49 774,785
E 2,600,000 Kbc Bank Funding Trst Ii ................................... 6.875% 06/30/49 2,224,152
2,400,000 Lloyds Tsb Cap 1 Call ...................................... 7.375% 02/07/49 2,184,273
$ 3,000,000 Nacional Financiera SNC .................................... 8.692% 12/01/00 2,985,000
E 5,000,000 Tecnost International NV ................................... 4.534% 06/23/04 4,649,069
------------
12,817,279
------------
</TABLE>
The accompanying notes are an integral part of these financial statements.
44 FREMONT MUTUAL FUNDS
<PAGE>
FREMONT BOND FUND
APRIL 30, 2000 (UNAUDITED)
STATEMENT OF INVESTMENTS IN SECURITIES AND NET ASSETS
<TABLE>
<CAPTION>
Coupon Maturity Value
Face Amount Issuer Rate Date (Note 1)
------------------------------------------------------------------------------------------------------------------
FOREIGN GOVERNMENT BONDS 4.7%
<S> <C> <C> <C> <C>
$ 2,115,000 Brazil Ei-l Frn Deb Brad ................................... 6.938% 04/15/06 $ 1,887,638
1,230,000 Brazil Idu Frn Ser A Deb ................................... 7.000% 01/01/01 1,228,463
NZ$ 800,000 Inter American Dev Bank .................................... 5.750% 04/15/04 366,067
600,000 New Zealand Government Bond ................................ 10.000% 03/15/02 306,529
900,000 New Zealand Government Bond ................................ 5.500% 04/15/03 420,042
$ 579,000 Republic of Philippines .................................... 9.500% 10/21/24 556,332
1,600,000 Royal Bank of Scotland ..................................... 9.118% 03/31/10 1,609,683
1,300,000 United Mexican States ...................................... 6.250% 06/27/02 1,300,000
------------
7,674,754
------------
U.S. CORPORATE BONDS 39.1%
1,000,000 AES Corp. .................................................. 10.250% 07/15/06 982,500
5,000,000 Associates Corp., NA ....................................... 5.750% 11/01/03 4,713,600
500,000 Bear Stearns Co., Inc. ..................................... 6.596% 03/28/03 500,035
1,100,000 Beckman Instruments, Inc. .................................. 7.100% 03/04/03 1,035,562
1,000,000 Buckeye Technologies, Inc. ................................. 8.000% 10/15/10 902,500
700,000 Building Materials Corp. ................................... 7.750% 07/15/05 607,250
700,000 Building Materials Corp. ................................... 8.000% 10/15/07 595,000
3,000,000 Circuit City Credit Card Master Trust ...................... 6.360% 02/15/06 2,997,780
1,000,000 Citicorp, FRN .............................................. 6.160% 08/13/02 1,003,700
2,000,000 Citicorp, FRN .............................................. 6.163% 11/12/02 2,008,440
738,000 Delta Air Lines, Inc. (Sinking Fund Bond) .................. 9.450% 02/14/06 750,000
1,478,000 Delta Air Lines, Inc. (Sinking Fund Bond) .................. 9.450% 02/26/06 1,515,999
2,500,000 General Motors Acceptance Corp., FRN ....................... 6.170% 08/18/03 2,488,878
10,000,000 GMAC ....................................................... 5.750% 11/10/03 9,394,600
1,500,000 Gold Eagle ................................................. 11.452% 04/16/01 1,592,550
2,000,000 Goldman Sachs Group, FRN ................................... 6.270% 01/17/03 1,999,510
1,500,000 Goldman Sachs Group, FRN ................................... 6.340% 02/22/02 1,500,843
5,000,000 Household Finance Corp. .................................... 6.440% 06/17/05 4,974,310
800,000 Lehman Brothers Holdings, Inc., MTN ........................ 6.375% 05/07/02 778,880
1,100,000 Lehman Brothers Holdings, Inc., MTN ........................ 6.832% 05/07/02 1,105,368
7,980,000 MCI Worldcom, Inc. ......................................... 6.125% 08/15/01 7,855,672
1,865,000 Nabisco, Inc. .............................................. 6.000% 02/15/01 1,817,480
5,000,000 Noram Energy Corp. ......................................... 6.375% 11/01/03 4,706,210
3,000,000 Popular, Inc. .............................................. 6.200% 04/30/01 2,960,160
2,400,000 Texas Utilities ............................................ 5.940% 10/15/01 2,352,629
450,000 Time Warner, Inc. .......................................... 8.110% 08/15/06 452,066
225,000 Time Warner, Inc. .......................................... 7.975% 08/15/04 227,066
450,000 Time Warner, Inc. .......................................... 8.180% 08/15/07 453,146
1,000,000 United Airlines ............................................ 10.670% 05/01/04 1,048,430
------------
63,320,164
------------
U.S. GOVERNMENT & AGENCIES 9.8%
1,978,071 U.S. Treasury Inflation Protection ......................... 3.875% 01/15/09 1,960,146
623,160 U.S. Treasury Inflation Protection ......................... 3.875% 04/15/29 624,525
725,000 U.S. Treasury Note ......................................... 5.125% 08/31/00 722,165
2,200,000 U.S. Treasury Note ......................................... 6.000% 02/15/26 2,138,818
1,000,000 U.S. Treasury Strip ........................................ 0.000% 05/15/20 295,909
300,000 U.S. Treasury Strip ........................................ 0.000% 11/15/21 81,891
4,700,000 U.S. Treasury Bond ......................................... 8.000% 11/15/21 5,652,502
3,198,350 U.S. Treasury Inflation Protection ......................... 3.625% 07/15/02 3,191,857
1,163,151 U.S. Treasury Inflation Protection ......................... 3.625% 01/15/08 1,133,345
------------
15,801,158
------------
TOTAL BONDS (Cost $210,981,216) 203,151,410
------------
OTHER SECURITIES 0.0%
12,500 Put Option on 90-day Euro Dollar, Strike @ 93.500, Exp. 12/18/00 .................. 7,625
------------
TOTAL OTHER SECURITIES (Cost $8,023) 7,625
------------
</TABLE>
The accompanying notes are an integral part of these financial statements.
FREMONT MUTUAL FUNDS 45
<PAGE>
FREMONT BOND FUND
APRIL 30, 2000 (UNAUDITED)
STATEMENT OF INVESTMENTS IN SECURITIES AND NET ASSETS
<TABLE>
<CAPTION>
Discount Maturity Value
Face Amount Issuer Rate Date (Note 1)
------------------------------------------------------------------------------------------------------------------
SHORT TERM SECURITIES 4.7%
<S> <C> <C> <C> <C>
$ 7,474,057 Repurchase Agreement, State Street Bank and Trust Co.,
5.400%, 05/01/00 (Maturity Value $7,477,365) (Cost
$7,474,057) Collateral: FNMA, 0.000%, 06/29/00 ................................. $ 7,474,057
120,000 U.S. Treasury Note ......................................... 5.125% 08/31/00 119,623
------------
TOTAL SHORT TERM SECURITIES (Cost $7,593,680) 7,593,680
------------
TOTAL INVESTMENTS (Cost $218,582,919) 130.1% 210,752,715
------------
OTHER ASSETS AND LIABILITIES, NET, (30.1%) (48,689,366)
------------
NET ASSETS, 100.0% $162,063,349
============
</TABLE>
The accompanying notes are an integral part of these financial statements.
46 FREMONT MUTUAL FUNDS
<PAGE>
FREMONT MONEY MARKET FUND
APRIL 30, 2000 (UNAUDITED)
STATEMENT OF INVESTMENTS IN SECURITIES AND NET ASSETS
<TABLE>
<CAPTION>
Discount Maturity Value
Face Amount Issuer Rate Date (Note 1)
------------------------------------------------------------------------------------------------------------------
COMMERCIAL PAPER 91.1%
BUSINESS EQUIPMENT & SERVICES 3.0%
<S> <C> <C> <C> <C>
**$5,000,000 Invensys PLC ............................................... 5.900% 05/11/00 $ 4,991,806
**10,000,000 Invensys PLC ............................................... 6.250% 07/21/00 9,859,375
** 5,000,000 Invensys PLC ............................................... 6.330% 07/27/00 4,923,512
------------
19,774,693
------------
CONSUMER DURABLES 15.7%
4,000,000 American Honda Finance ..................................... 5.870% 05/01/00 4,000,000
10,000,000 American Honda Finance ..................................... 6.170% 07/24/00 9,856,033
10,000,000 General Electric Capital Corp. ............................. 6.090% 06/06/00 9,939,100
10,000,000 General Electric Capital Corp. ............................. 6.070% 06/08/00 9,935,928
10,000,000 General Motors Acceptance Corp. ............................ 5.920% 05/19/00 9,970,400
10,000,000 General Motors Acceptance Corp. ............................ 6.130% 07/05/00 9,889,319
**10,000,000 Hitachi America Capital Corp. .............................. 5.920% 05/17/00 9,973,689
**10,000,000 Hitachi America Capital Corp. .............................. 5.930% 06/07/00 9,939,053
** 5,000,000 Hitachi America Capital Corp. .............................. 5.960% 06/07/00 4,969,372
5,000,000 Sharp Electronics Corp. .................................... 6.105% 05/01/00 5,000,000
10,000,000 Toyota Motor Credit Puerto Rico ............................ 5.890% 05/11/00 9,983,639
10,000,000 Toyota Motor Credit Puerto Rico ............................ 5.900% 05/26/00 9,959,028
------------
103,415,561
------------
CONSUMER NON-DURABLES 7.6%
10,000,000 Archer Daniels Midland ..................................... 6.100% 06/20/00 9,915,278
10,000,000 Eastman Kodak .............................................. 5.880% 05/15/00 9,977,133
5,000,000 Eastman Kodak .............................................. 6.100% 06/19/00 4,958,486
5,000,000 Eastman Kodak .............................................. 6.100% 06/22/00 4,955,944
10,000,000 Golden Peanut Co. .......................................... 5.950% 05/16/00 9,975,208
10,000,000 Golden Peanut Co. .......................................... 6.150% 07/14/00 9,873,583
------------
49,655,632
------------
CONSUMER SERVICES 4.4%
9,240,000 Bell Atlantic Financial .................................... 5.880% 05/02/00 9,238,491
10,000,000 British Telecom ............................................ 6.110% 06/27/00 9,903,258
10,000,000 British Telecom ............................................ 6.080% 06/30/00 9,898,667
------------
29,040,416
------------
FINANCIAL SERVICES (BANKS) 9.0%
10,000,000 Abbey National North America Corp. ......................... 6.070% 08/30/00 9,795,981
10,000,000 Banque Caisse D'Epargne De L'Etat .......................... 5.910% 05/18/00 9,972,092
10,000,000 FCE Bank PLC ............................................... 6.060% 06/15/00 9,924,250
10,000,000 Halifax PLC ................................................ 5.880% 05/10/00 9,985,300
10,000,000 Halifax PLC ................................................ 5.880% 07/03/00 9,897,100
10,000,000 Toronto-Dominion Bank ...................................... 6.050% 06/21/00 9,914,292
------------
59,489,015
------------
FINANCIAL SERVICES (OTHER) 39.3%
10,000,000 Aegon NV ................................................... 6.120% 07/07/00 9,886,100
**10,000,000 Allianz Of America Finance Corp. ........................... 5.930% 05/25/00 9,960,467
** 5,000,000 Allianz Of America Finance Corp. ........................... 6.060% 06/12/00 4,964,650
**10,000,000 Allianz Of America Finance Corp. ........................... 6.040% 06/16/00 9,922,822
10,000,000 American General Finance ................................... 6.070% 06/28/00 9,902,205
5,000,000 Associates First Capital Corp. ............................. 5.870% 05/04/00 4,997,554
10,000,000 Associates First Capital Corp. ............................. 6.080% 06/13/00 9,927,378
5,000,000 Associates Financial Services .............................. 5.950% 06/09/00 4,967,771
10,000,000 British Columbia Prov ...................................... 5.690% 05/08/00 9,988,936
10,000,000 Chevron UK Investment PLC .................................. 6.240% 09/20/00 9,753,867
10,000,000 CITGroup Holdings .......................................... 5.960% 05/22/00 9,965,233
10,000,000 CITGroup Holdings .......................................... 6.070% 06/14/00 9,925,811
**10,000,000 Dexia CLF Finance Co. ...................................... 5.900% 06/02/00 9,947,555
** 5,000,000 Dexia CLF Finance Co. ...................................... 6.110% 06/09/00 4,966,904
**10,000,000 Dexia CLF Finance Co. ...................................... 6.120% 06/29/00 9,899,700
</TABLE>
The accompanying notes are an integral part of these financial statements.
FREMONT MUTUAL FUNDS 47
<PAGE>
FREMONT MONEY MARKET FUND
APRIL 30, 2000 (UNAUDITED)
STATEMENT OF INVESTMENTS IN SECURITIES AND NET ASSETS
<TABLE>
<CAPTION>
Discount Maturity Value
Face Amount Issuer Rate Date (Note 1)
------------------------------------------------------------------------------------------------------------------
FINANCIAL SERVICES (OTHER) (CONT.)
<S> <C> <C> <C> <C>
$ 10,000,000 Goldman Sachs Group, LP .................................... 6.140% 07/10/00 $ 9,880,611
10,000,000 Goldman Sachs Group, LP .................................... 6.140% 07/28/00 9,849,911
**10,000,000 John Hancock Capital Co .................................... 6.130% 07/13/00 9,875,697
5,000,000 Merrill Lynch & Co., Inc. .................................. 6.040% 05/02/00 4,999,161
10,000,000 Merrill Lynch & Co., Inc. .................................. 5.830% 05/30/00 9,953,036
10,000,000 MetLife Funding, Inc. ...................................... 6.100% 07/06/00 9,888,167
**10,000,000 RTZ America, Inc. .......................................... 6.070% 06/26/00 9,905,578
**10,000,000 Solvay Finance ............................................. 5.920% 05/09/00 9,986,844
** 5,000,000 Solvay Finance ............................................. 5.950% 05/09/00 4,993,389
**10,000,000 Solvay Finance ............................................. 6.050% 06/12/00 9,929,417
** 5,800,000 St. Paul Companies ......................................... 6.070% 05/01/00 5,800,000
**10,000,000 Swiss Re Financial Products ................................ 5.900% 05/23/00 9,963,944
**10,000,000 Swiss Re Financial Products ................................ 5.920% 06/01/00 9,949,022
5,000,000 Transamerica Finance Corp. ................................. 5.960% 05/11/00 4,991,806
**10,000,000 WMC Finance Ltd. ........................................... 6.000% 06/05/00 9,941,667
------------
258,885,203
------------
FOREIGN CORPORATE BONDS 6.1%
**10,000,000 France Telecom ............................................. 5.910% 05/03/00 9,996,717
**10,000,000 France Telecom ............................................. 5.910% 05/24/00 9,962,242
** 5,000,000 France Telecom ............................................. 6.080% 06/19/00 4,958,622
5,000,000 KFW International Finance .................................. 5.850% 05/04/00 4,997,563
10,000,000 KFW International Finance .................................. 5.740% 05/31/00 9,952,167
------------
39,867,311
------------
HEALTH CARE 2.3%
**10,000,000 Queens Health Systems ...................................... 5.900% 05/05/00 9,993,444
** 5,000,000 Queens Health Systems ...................................... 5.950% 05/17/00 4,986,778
------------
14,980,222
------------
RAW MATERIALS 1.5%
**10,000,000 Henkel Corp. ............................................... 5.940% 06/23/00 9,912,550
------------
9,912,550
------------
UTILITIES 2.2%
10,000,000 National Rural Utilities Cooperative Finance Corp. ......... 6.150% 07/18/00 9,866,750
5,000,000 National Rural Utilities Cooperative Finance Corp. ......... 6.340% 12/07/00 4,806,278
------------
14,673,028
------------
TOTAL COMMERCIAL PAPER (Cost $599,693,631) 599,693,631
------------
OTHER SHORT-TERM SECURITIES 9.1%
10,000,000 Deutsche Bank NY, YCD ...................................... 5.200% 05/10/00 9,999,905
5,000,000 Federal Home Loan Discount Note, AN ........................ 5.375% 03/01/01 4,952,505
10,000,000 FHLB, AN ................................................... 5.520% 06/22/00 10,000,000
5,000,000 FHLB, AN ................................................... 5.500% 10/06/00 4,879,306
10,000,000 FHLB, AN ................................................... 5.970% 12/01/00 9,991,580
5,000,000 FHLB, AN ................................................... 6.315% 01/19/01 4,993,928
10,000,000 FNMA, AN ................................................... 5.120% 05/12/00 9,999,065
5,000,000 FNMA, AN ................................................... 6.195% 12/27/00 4,996,230
200,754 Repurchase Agreement, State Street Bank and Trust Co., 5.400%,
05/01/00 (Maturity Value $200,843) (Cost $200,754) Collateral:
FNMA, 6.000%, 09/24/01 ..................................... 200,754
------------
TOTAL OTHER SHORT-TERM SECURITIES (Cost $60,013,273) ....... 60,013,273
------------
TOTAL INVESTMENTS (Cost $659,706,904) 100.2% ............... 659,706,904
------------
OTHER ASSETS AND LIABILITIES, NET, (0.2)% .................. (1,007,927)
------------
NET ASSETS, 100.0% ......................................... $658,698,977
============
</TABLE>
The accompanying notes are an integral part of these financial statements.
48 FREMONT MUTUAL FUNDS
<PAGE>
FREMONT CALIFORNIA TAX-FREE FUND
APRIL 30, 2000 (UNAUDITED)
STATEMENT OF INVESTMENTS IN SECURITIES AND NET ASSETS
<TABLE>
<CAPTION>
Coupon Maturity Value
Face Amount Issuer Rate Date (Note 1)
------------------------------------------------------------------------------------------------------------------
MUNICIPAL BONDS 99.0%
<S> <C> <C> <C> <C>
$ 1,000,000 City of Anaheim, Public Finance Authority Revenue Bond,
Anaheim Electric Utility Projects ....................... 5.600% 10/01/16 $ 1,003,150
1,000,000 Big Bear Area Regional Wastewater Agency, California Revenue 5.000% 04/01/10 996,480
200,000 California Health Facilities Financial Authority Revenue ... 5.000% 11/15/18 179,966
235,000 California Health Facilities Financial Authority Revenue,
Kaiser Permanente Ser. B ................................ 5.250% 10/01/13 216,959
1,000,000 California State Dept. of Veterans Affairs,
Home Purchase Revenue 1991 Ser. A ....................... 6.450% 08/01/00 1,005,880
1,015,000 California Department of Water Resources,
Central Valley Project Revenue .......................... 4.750% 12/01/16 904,842
500,000 California State Dept. of Water Resources,
Central Valley Project Revenue Ser. M ................... 4.800% 12/01/07 498,250
1,000,000 California State Dept. of Water Resources,
Central Valley Project Revenue Ser. H ................... 6.400% 12/01/00 1,017,060
500,000 California State Dept. of Water Resources,
Central Valley Project Revenue Ser. T ................... 5.125% 12/01/12 495,405
1,000,000 California State Public Works Board, Lease Revenue
Dept. of Corrections, Prison D .......................... 5.100% 06/01/06 1,009,540
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 1,035,530
1,000,000 Contra Costa Transportation Authority,
Sales Tax Revenue 1991 Ser. A ........................... 6.400% 03/01/01 1,018,990
1,000,000 Contra Costa Water Authority, Water Treatment
Revenue Refunding 1993 Ser. A (FGIC Insured) ............ 5.300% 10/01/05 1,022,680
1,000,000 Contra Costa Water District, Water Revenue
Ser. F (FGIC Insured) ................................... 5.250% 10/01/08 1,013,140
1,500,000 East Bay CA MUD, Water System Subordinated Revenue Ser. 1998 5.250% 06/01/14 1,478,640
1,000,000 Fremont California Unified School District
Alameda County Refunding Ser A (FGIC Insured) ........... 4.700% 08/01/15 900,320
1,000,000 City of Fairfield, Water Revenue (AMBAC Insured) ........... 5.250% 04/01/14 982,050
1,225,000 City of Industry, Urban Development Agency
Tax Allocation (MBIA Insured) ........................... 5.250% 05/01/12 1,228,785
1,050,000 Kings River Consv Dist Calif Pine Flat Pwr Rev ............. 5.125% 01/01/17 978,527
1,000,000 City of Los Angeles, Convention & Exhibition
Center Authority, Lease Revenue Bonds Refunding Ser. A .. 5.200% 08/15/09 1,010,750
1,500,000 City of Los Angeles, Wastewater System Revenue
Ser. A (MBIA Insured) ................................... 5.000% 12/01/11 1,482,405
440,000 Los Angeles County Municipal Improvement Corporate Lease,
Special Tax-Police Emergency Revenue Ser. D ............. 5.000% 09/01/12 431,046
500,000 Los Angeles County Public Works Finance Authority,
Regional Park and Open Space District Ser. A ............ 5.500% 10/01/11 513,480
1,000,000 Los Angeles County Public Works Finance Authority,
Lease Revenue Ser. B (MBIA Insured) ..................... 5.250% 09/01/09 1,019,200
1,000,000 Los Angeles County Public Works Finance Authority,
Regional Park and Open Space District Ser. A ............ 5.000% 10/01/16 928,450
500,000 Los Angeles County Public Works Finance Authority,
Regional Park and Open Space District Ser. A ............ 5.000% 10/01/04 506,810
750,000 Los Angeles County Sanitation District
Finance Authority, 1993 Ser. A .......................... 5.250% 10/01/06 766,103
1,000,000 Los Angeles County Transportation Authority,
Sales Tax Revenue ....................................... 5.000% 07/01/15 943,510
1,000,000 Los Angeles Dept. of Water & Power,
Electric Plant Revenue .................................. 5.500% 09/01/07 1,025,700
1,000,000 Los Angeles Dept. of Water & Power,
Waterworks Revenue Refunding ............................ 5.625% 04/15/08 1,026,050
1,000,000 M-S-R Public Power Agency, San Juan Project Revenue Ser. F . 5.650% 07/01/03 1,031,960
1,000,000 Metropolitan Water District of Southern California,
Waterworks GO Refunding 1993 Ser. A ..................... 5.250% 03/01/05 1,026,330
1,000,000 Modesto High School District, 1993 GO Refunding (FGIC Insured) 5.300% 08/01/04 1,024,580
1,000,000 Modesto Irrigation District Finance Authority,
Domestic Water Project Revenue 1992 Ser. A (AMBAC Insured) 5.650% 09/01/03 1,042,220
500,000 Northern California Power Agency, Geothermal
Project #3, Escrowed to Maturity Ser. A ................. 5.600% 07/01/06 519,630
500,000 Northern California Power Agency,
Geothermal Project #3 Ser. A ............................ 5.600% 07/01/06 505,910
1,000,000 Orange County Transportation Authority, Measure M
Sales Tax Revenue First Ser. 1992 ....................... 6.000% 02/15/06 1,058,200
1,000,000 Orange County Transportation Authority, Measure M
Sales Tax Revenue Second Senior Ser. 1994 (FGIC Insured) 5.000% 02/15/08 1,007,960
500,000 City of Pasadena, GO Refunding Police and Jail Building 1993 5.000% 06/01/07 496,590
500,000 Peralta California Community College District .............. 5.350% 08/01/17 487,155
1,000,000 Rancho Cucamonga RDA, 1994 Tax Allocation Refunding
(MBIA Insured) .......................................... 5.000% 09/01/07 1,006,690
1,000,000 City of Riverside, Electric Revenue Refunding 1993 ......... 5.000% 10/01/06 1,004,440
1,000,000 City of Riverside, Electric Revenue
Refunding 1993 (AMBAC Insured) .......................... 5.000% 10/01/13 964,420
1,000,000 Sacramento MUD, Electric Revenue 1991 Ser. Y ............... 6.250% 09/01/00 1,007,920
2,000,000 Sacramento MUD, Electric Revenue 1997 Ser. L ............... 5.125% 07/01/15 1,918,360
1,000,000 Sacramento County Sanitation District Finance Authority,
Revenue Bond (MBIA Insured) ............................. 5.125% 12/01/13 962,070
1,000,000 Sacramento County Sanitation District Finance Authority,
Revenue Bond (MBIA Insured) ............................. 5.000% 12/01/08 1,004,070
1,000,000 San Bernardino County Transportation Authority,
Sales Tax Revenue 1992 Ser. A (FGIC Insured) ............ 6.000% 03/01/03 1,037,500
1,000,000 City and County of San Francisco International Airport,
Revenue Second Ser. Issue 1 (AMBAC Insured) ............. 6.100% 05/01/03 1,041,830
</TABLE>
The accompanying notes are an integral part of these financial statements.
FREMONT MUTUAL FUNDS 49
<PAGE>
FREMONT CALIFORNIA TAX-FREE FUND
APRIL 30, 2000 (UNAUDITED)
<TABLE>
<CAPTION>
Coupon Maturity Value
Face Amount Issuer Rate Date (Note 1)
------------------------------------------------------------------------------------------------------------------
MUNICIPAL BONDS (CONT.)
<S> <C> <C> <C> <C>
$ 1,000,000 City and County of San Francisco RDA, Lease Revenue Ser. 1991
(George R. Moscone Convention Center) (AMBAC Insured) 6.200% 10/01/00 $ 1,009,180
1,000,000 City and County of San Francisco RDA, Tax Allocation 1997
Ser. B .................................................. 5.700% 08/01/14 1,029,650
1,000,000 City and County of San Francisco Sewer, Revenue Refunding
Ser. 1992 (AMBAC Insured) ............................... 5.800% 10/01/05 1,041,620
1,000,000 City of San Jose, Finance Authority (Convention Center
Refunding Project) 1993 Ser. C (MBIA Insured) ........... 5.750% 09/01/03 1,028,160
500,000 San Jose-Santa Clara County Water Financing
Authority, Sewer Revenue ................................ 5.250% 11/15/12 499,760
330,000 San Mateo County Sewer Revenue ............................. 4.850% 08/01/17 297,838
1,000,000 Santa Margarita/Dana Point Authority Orange County,
Revenue Bond Ser. A ..................................... 5.375% 08/01/04 1,028,220
1,000,000 Santa Monica-Malibu Unified School District,
Public School Facilities Reconstruction Projects ........ 5.500% 08/01/18 1,040,870
1,000,000 Southern California Public Power Authority,
Mead-Phoenix Project Revenue 1994 Ser. A (AMBAC Insured) 4.750% 07/01/08 988,940
1,000,000 Southern California Public Power Authority,
Palo Verde Power Projects Revenue 1993 Ser. A ........... 5.100% 07/01/06 1,006,930
1,000,000 University of California, Housing System
Revenue 1993 Ser. A (MBIA Insured) ...................... 5.500% 11/01/08 1,027,930
500,000 University of California, Research Facilities
Revenue 1995 Ser. C (AMBAC Insured) ..................... 5.100% 09/01/07 505,670
250,000 Vacaville California Public Financing
Authority Tax Allocation Revenue ........................ 5.100% 09/01/11 243,537
1,000,000 West & Central Basin Finance Authority, West Basin
Water Revenue Refunding Project (AMBAC Insured) ......... 5.125% 08/01/06 1,015,100
1,000,000 City of Whittier, Solid Waste Revenue Ser. A (AMBAC Insured) 5.375% 08/01/14 998,920
1,500,000 Yucaipa School Facilities Finance Authority, 1995
Sweetwater Refunding (MBIA Insured) ..................... 6.000% 09/01/10 1,553,520
------------
TOTAL MUNICIPAL BONDS (Cost $58,409,832) ................... 59,103,378
------------
Shares
------------------------------------------------------------------------------------------------------------------
SHORT-TERM SECURITIES 0.0%
2,109 Provident Institutional Fund: Municipal Fund for California Investors, Inc. ....... 2,109
------------
TOTAL SHORT-TERM SECURITIES (Cost $2,109) 2,109
------------
TOTAL INVESTMENTS (Cost $58,411,941), 99.0% 59,105,487
------------
OTHER ASSETS & LIABILITIES, NET, 1.0% 567,376
------------
NET ASSETS, 100.0% $ 59,672,863
============
</TABLE>
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
The following footnotes and abbreviations are a reference point for the
Statements of Investments in Securities and Net Assets on pages 22 through 50.
* 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) As of April 30, 2000, these securities represent ownership of at least 5% of
the voting securities of the issuer and are, therefore, affiliates 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
CMO Collateralized Mortgage Obligation
CP Commercial Paper
FFCB Federal Farm Credit Bank
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
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
AUS$ Australian Dollar
(Pound) British Pound
CAN$ Canadian Dollar
DKK Danish Kroner
GRD Greek Drachmas
E Euro
DM German Deutschemark
(Y) Japanese Yen
NOK Norwegian Kroner
NZ$ New Zealand Dollar
SGD Singapore Dollar
SEK Swedish Krona
$ U.S. Dollar
The accompanying notes are an integral part of these financial statements.
FREMONT MUTUAL FUNDS 51
<PAGE>
FREMONT MUTUAL FUNDS, INC.
NOTES TO STATEMENTS OF INVESTMENTS IN SECURITIES AND NET ASSETS
APRIL 30, 2000 (UNAUDITED)
COUNTRY DIVERSIFICATION
<TABLE>
<CAPTION>
Country Country International Emerging Real Estate
Code Name Global Growth Markets Bond Securities Fund
----------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
AS Austria 0.4% -- -- -- --
AU Australia 1.2% 3.1% -- -- --
BM Bermuda -- 0.2% -- -- --
BR Brazil 0.3% 0.4% 11.1% -- --
CH China 0.1% -- -- -- --
CN Canada 2.2% 3.2% -- -- 0.1%
CR Croatia -- -- 2.8% -- --
CZ Czech Republic -- -- 0.7% -- --
DK Denmark 0.8% -- -- -- --
FI Finland 0.9% 3.8% -- -- --
FR France 3.1% 5.1% -- -- --
GM Germany 4.7% 6.0% -- -- --
GR Greece 0.9% -- -- -- --
HK Hong Kong 0.5% 2.0% 3.0% -- --
HU Hungry -- -- 2.0% -- --
IN India -- -- 6.2% -- --
IR Ireland 0.5% -- -- -- --
IS Israel -- -- 1.6% -- --
IT Italy 1.2% 3.1% -- 2.7% --
JP Japan 7.7% 27.3% -- -- --
LU Luxembourg 0.1% 0.3% -- -- --
MX Mexico 2.2% 1.6% 6.8% 0.9% --
MY Malaysia 0.8% -- -- -- --
NL Netherlands 1.7% 4.9% -- -- --
NO Norway -- 1.0% -- -- --
NZ New Zealand 0.4% -- -- 0.7% --
PH Philippines 0.1% -- -- 0.3% --
PO Poland -- -- 2.3% -- --
PT Portugal -- 0.4% -- -- --
RU Russia -- -- 3.2% -- --
SA South Africa -- 0.4% 6.2% -- --
SG Singapore 0.4% 1.2% -- -- --
SK South Korea 0.2% 1.6% 21.4% -- --
SP Spain 0.9% 1.8% -- -- --
SW Sweden 0.9% 2.5% -- -- --
SZ Switzerland 1.1% 5.3% -- -- --
TH Thailand -- -- 5.9% -- --
TU Turkey 0.1% -- 5.7% -- --
TW Taiwan 0.8% 2.3% 13.3% -- --
UK United Kingdom 4.6% 13.6% 1.8% -- --
US United States 61.2% 8.9% 3.7% 95.4% 99.9%
VZ Venezuela -- -- 2.3% -- --
------ ------ ------ ------ ------
Total 100.0% 100.0% 100.0% 100.0% 100.0%
====== ====== ====== ====== ======
</TABLE>
The Fremont Funds not listed above include 100% securities denominated in U.S.
dollars.
The accompanying notes are an integral part of these financial statements.
52 FREMONT MUTUAL FUNDS
<PAGE>
FREMONT MUTUAL FUNDS, INC.
APRIL 30, 2000 (UNAUDITED)
This page left blank intentionally.
FREMONT MUTUAL FUNDS 53
<PAGE>
FREMONT MUTUAL FUNDS, INC.
APRIL 30, 2000 (UNAUDITED)
STATEMENT OF ASSETS AND LIABILITIES
(ALL NUMBERS IN THOUSANDS EXCEPT NET ASSET VALUE PER SHARE)
<TABLE>
<CAPTION>
International Emerging
Global Growth Markets
Fund Fund Fund
---------------------------------------
ASSETS:
<S> <C> <C> <C>
Investments in securities at cost $ 728,123 $ 61,646 $ 15,465
========== ========== ==========
Investments in securities at value 784,752 82,680 16,393
Cash 832 -- 496
Dividends and interest receivable 4,958 187 57
Receivable for securities sold 6,902 971 --
Receivable from sale of fund shares 1,172 778 15
Unrealized appreciation on foreign currency contracts 6,751 87 --
Prepaid Expenses -- -- --
Unamortized organization costs -- -- 4
---------- ---------- ----------
TOTAL ASSETS 805,367 84,703 16,965
---------- ---------- ----------
LIABILITIES:
Bank overdraft -- 9 127
Liabilities for options written 5 -- --
Payable for securities purchased 13,724 182 --
Payable for fund shares redeemed -- -- --
Variation margin payable 3 -- --
Unrealized depreciation on foreign currency contracts 821 233 --
Accrued expenses:
Investment advisory, administrative
and distribution fees 453 82 10
Other 42 1 21
---------- ---------- ----------
TOTAL LIABILITIES 15,048 507 158
---------- ---------- ----------
NET ASSETS $ 790,319 $ 84,196 $ 16,807
========== ========== ==========
Net assets consist of:
Paid in capital $ 672,461 $ 59,975 $ 19,540
Undistributed net investment income 2,707 (122) (487)
Accumulated net realized gain (loss) 48,247 3,489 (3,175)
Unrealized appreciation (depreciation) on
investments, futures and options 61,296 21,034 928
Unrealized appreciation (depreciation) on foreign
currency contracts and other assets and liabilities 5,608 (180) 1
---------- ---------- ----------
NET ASSETS $ 790,319 $ 84,196 $ 16,807
========== ========== ==========
SHARES OF CAPITAL STOCK OUTSTANDING 52,031 5,661 1,746
========== ========== ==========
NET ASSET VALUE PER SHARE $ 15.19 $ 14.87 $ 9.62
========== ========== ==========
</TABLE>
The Global Fund received premiums of $10 on written options.
The accompanying notes are an integral part of these financial statements.
54 FREMONT MUTUAL FUNDS
<PAGE>
FREMONT MUTUAL FUNDS, INC.
APRIL 30, 2000 (UNAUDITED)
U.S. U.S. Real Estate
Micro-Cap Small Cap Growth Securities
Fund Fund Fund Fund
-----------------------------------------------------
$ 721,336 $ 57,865 $ 99,239 $ 32,837
========== ========== ========== ==========
847,687 64,894 130,711 32,580
3,456 -- 22 --
127 10 128 207
2,365 688 -- 102
2,514 106 189 157
-- -- -- --
-- 10 -- --
10 8 -- 6
---------- ---------- ---------- ----------
856,159 65,716 131,050 33,052
---------- ---------- ---------- ----------
-- 13 -- 80
-- -- -- --
13,438 979 -- 199
800 -- -- --
-- -- 22 --
-- -- -- --
944 69 65 19
1 1 33 19
---------- ---------- ---------- ----------
15,183 1,062 120 317
---------- ---------- ---------- ----------
$ 840,976 $ 64,654 $ 130,930 $ 32,735
========== ========== ========== ==========
$ 605,791 $ 47,270 $ 94,720 $ 40,772
355 (204) 251 (157)
108,479 10,559 4,659 (7,623)
126,351 7,029 31,300 (257)
-- -- -- --
---------- ---------- ---------- ----------
$ 840,976 $ 64,654 $ 130,930 $ 32,735
========== ========== ========== ==========
20,211 2,986 8,225 4,214
========== ========== ========== ==========
$ 41.61 $ 21.65 $ 15.92 $ 7.77
========== ========== ========== ==========
The accompanying notes are an integral part of these financial statements.
FREMONT MUTUAL FUNDS 55
<PAGE>
FREMONT MUTUAL FUNDS, INC.
APRIL 30, 2000 (UNAUDITED)
STATEMENT OF ASSETS AND LIABILITIES
(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 $ 218,531 $ 659,707 $ 58,412
========== ========== ==========
Investments in securities at value 210,752 659,707 59,105
Cash -- 668 39
Dividends and interest receivable 3,159 1,789 766
Receivable for securities sold 13,584 -- --
Receivable from sale of fund shares 51 154 --
Variation margin receivable 130 -- --
Unrealized appreciation on foreign currency contracts 170 -- --
---------- ---------- ----------
TOTAL ASSETS 227,846 662,318 59,910
---------- ---------- ----------
LIABILITIES:
Bank overdraft 1,104 -- --
Liabilities for options written 86 -- --
Dividends payable to shareholders 695 2,914 220
Reverse repurchase agreement 40,198 -- --
Payable for interest due to
reverse repurchase agreement 34 -- --
Payable for securities purchased 23,539 -- --
Payable for fund shares redeemed 27 497 --
Accrued expenses:
Investment advisory, administrative
and distribution fees 62 186 16
Other 38 22 1
---------- ---------- ----------
TOTAL LIABILITIES 65,783 3,619 237
---------- ---------- ----------
NET ASSETS $ 162,063 $ 658,699 $ 59,673
========== ========== ==========
Net assets consist of:
Paid in capital $ 174,075 $ 658,699 $ 59,155
Undistributed net investment income 1,338 -- --
Accumulated net realized gain (loss) (5,974) -- (175)
Unrealized appreciation (depreciation) on
investments, futures and options (7,548) -- 693
Unrealized appreciation (depreciation) on foreign
currency contracts and other assets and liabilities 172 -- --
---------- ---------- ----------
NET ASSETS $ 162,063 $ 658,699 $ 59,673
========== ========== ==========
SHARES OF CAPITAL STOCK OUTSTANDING 16,907 658,699 5,615
========== ========== ==========
NET ASSET VALUE PER SHARE $ 9.59 $ 1.00 $ 10.63
========== ========== ==========
</TABLE>
The Bond Fund received premiums of $110 on written options.
The accompanying notes are an integral part of these financial statements.
56 FREMONT MUTUAL FUNDS
<PAGE>
FREMONT MUTUAL FUNDS, INC.
APRIL 30, 2000 (UNAUDITED)
This page left blank intentionally.
FREMONT MUTUAL FUNDS 57
<PAGE>
FREMONT MUTUAL FUNDS, INC.
SIX MONTHS ENDED APRIL 30, 2000 (UNAUDITED)
STATEMENT OF OPERATIONS
(ALL NUMBERS IN THOUSANDS)
<TABLE>
<CAPTION>
International Emerging
Global Growth Markets
Fund Fund Fund
----------------------------------------
INVESTMENT INCOME:
<S> <C> <C> <C>
Interest $ 10,590 $ 125 $ 24
Dividends 5,421 334 85
---------- ---------- ----------
TOTAL INCOME* 16,011 459 109
---------- ---------- ----------
EXPENSES:
Investment advisory and administrative fees (Note 2) 2,837 436 101
Shareholder servicing fees 72 36 21
Custody fees 146 22 12
Distribution fees (Note 2) -- 95 22
Accounting fees 183 13 10
Audit and legal fees 30 11 11
Directors' fees (Note 2) 3 3 3
Registration fees 15 6 6
Reports to shareholders 15 3 5
Other 25 3 3
---------- ---------- ----------
TOTAL EXPENSES BEFORE REDUCTIONS 3,326 628 194
Earnings credits (Note 2) (5) -- (4)
Expenses waived and/or reimbursed by Advisor (Note 2) -- (59) (59)
---------- ---------- ----------
TOTAL NET EXPENSES 3,321 569 131
---------- ---------- ----------
NET INVESTMENT INCOME (LOSS) 12,690 (110) (22)
---------- ---------- ----------
REALIZED AND UNREALIZED GAIN (LOSS) FROM INVESTMENTS
AND FOREIGN CURRENCY:
Net realized gain (loss) from:
Investments 51,257 3,448 3,002
Futures (1,837) -- --
Options 3 -- --
Foreign currency transactions (110) 60 11
Net unrealized appreciation (depreciation) on:
Investments 16,146 9,253 (516)
Translation of assets and liabilities in foreign currencies 7,897 (26) 2
---------- ---------- ----------
Net realized and unrealized gain (loss) from investments
and foreign currency 73,356 12,735 2,499
---------- ---------- ----------
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS $ 86,046 $ 12,625 $ 2,477
========== ========== ==========
</TABLE>
* Net of foreign taxes withheld of $537 for the Global Fund, $39 for the
International Growth Fund and $20 for the Emerging Markets Fund.
The accompanying notes are an integral part of these financial statements.
58 FREMONT MUTUAL FUNDS
<PAGE>
FREMONT MUTUAL FUNDS, INC.
SIX MONTHS ENDED APRIL 30, 2000
U.S. U.S. Real Estate
Micro-Cap Small Cap Growth Securities
Fund Fund Fund Fund
---------- ---------- ---------- ----------
$ 6,509 $ 241 $ 126 $ 41
120 18 835 1,073
---------- ---------- ---------- ----------
6,629 259 961 1,114
---------- ---------- ---------- ----------
6,274 355 443 155
-- 59 74 60
-- 11 10 7
-- 77 -- 39
-- 9 16 7
-- 10 9 11
-- 3 3 3
-- 8 7 6
-- 3 14 15
-- 4 5 3
---------- ---------- ---------- ----------
6,274 539 581 306
-- (1) (1) (1)
-- (75) -- (72)
---------- ---------- ---------- ----------
6,274 463 580 233
---------- ---------- ---------- ----------
355 (204) 381 881
---------- ---------- ---------- ----------
109,529 10,822 5,105 (726)
-- -- 8 --
-- -- -- --
-- -- -- --
59,273 28 3,583 1,882
-- -- -- --
---------- ---------- ---------- ----------
168,802 10,850 8,696 1,156
---------- ---------- ---------- ----------
$ 169,157 $ 10,646 $ 9,077 $ 2,037
========== ========== ========== ==========
The accompanying notes are an integral part of these financial statements.
FREMONT MUTUAL FUNDS 59
<PAGE>
FREMONT MUTUAL FUNDS, INC.
SIX MONTHS ENDED APRIL 30, 2000 (UNAUDITED)
STATEMENT OF OPERATIONS
(ALL NUMBERS IN THOUSANDS)
<TABLE>
<CAPTION>
California
Intermediate
Bond Money Market Tax-Free
Fund Fund Fund
---------- ---------- ----------
INVESTMENT INCOME:
<S> <C> <C> <C>
Interest $ 6,954 $ 21,960 $ 1,624
Dividends 187 -- --
---------- ---------- ----------
TOTAL INCOME 7,141 21,960 1,624
---------- ---------- ----------
EXPENSES:
Investment advisory and administrative fees (Note 2) 462 1,323 158
Shareholder servicing fees 30 64 11
Custody fees 44 25 3
Accounting fees 22 61 14
Audit and legal fees 9 9 11
Directors' fees (Note 2) 3 3 3
Registration fees 8 19 1
Reports to shareholders 8 8 3
Other 5 16 3
---------- ---------- ----------
TOTAL EXPENSES BEFORE REDUCTIONS 591 1,528 207
Earnings credits (Note 2) (20) -- (1)
Expenses waived and/or reimbursed by Advisor (Note 2) (42) -- (53)
---------- ---------- ----------
TOTAL NET EXPENSES 529 1,528 153
---------- ---------- ----------
NET INVESTMENT INCOME 6,612 20,432 1,471
---------- ---------- ----------
REALIZED AND UNREALIZED GAIN (LOSS) FROM INVESTMENTS
AND FOREIGN CURRENCY:
Net realized gain (loss) from:
Investments 1,376 -- (174)
Futures (892) -- --
Options 391 -- --
Foreign currency transactions 25 -- --
Net unrealized appreciation (depreciation) on:
Investments (3,833) -- (78)
Translation of assets and liabilities in foreign currencies (32) -- --
---------- ---------- ----------
Net realized and unrealized loss from investments
and foreign currency (2,965) -- (252)
---------- ---------- ----------
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS $ 3,647 $ 20,432 $ 1,219
========== ========== ==========
</TABLE>
The accompanying notes are an integral part of these financial statements.
60 FREMONT MUTUAL FUNDS
<PAGE>
FREMONT MUTUAL FUNDS, INC.
APRIL 30, 2000 (UNAUDITED)
This page left blank intentionally.
FREMONT MUTUAL FUNDS 61
<PAGE>
FREMONT MUTUALS FUNDS, INC.
APRIL 30, 2000
STATEMENT OF CHANGES IN NET ASSETS
FOR THE SIX MONTHS ENDED APRIL 30, 2000 (UNAUDITED)
AND THE YEAR ENDED OCTOBER 31, 1999
(ALL NUMBERS IN THOUSANDS)
<TABLE>
<CAPTION>
Global International Growth
Fund Fund
------------------------- -------------------------
4/30/00 10/31/99 4/30/00 10/31/99
---------- ---------- ---------- ----------
INCREASE (DECREASE) IN NET ASSETS:
From operations:
<S> <C> <C> <C> <C>
Net investment income (loss) $ 12,690 $ 18,611 $ (110) $ 18
Net realized gain (loss) from investments
and transactions in written options 49,423 65,730 3,448 2,435
Net realized gain (loss) from foreign currency transactions (110) (4,263) 60 (346)
Net unrealized appreciation (depreciation) on investments 16,146 15,623 9,253 13,260
Net unrealized appreciation (depreciation) on translation of
assets and liabilities in foreign currencies 7,897 8,831 (26) 149
---------- ---------- ---------- ----------
Net increase (decrease) in net assets from operations 86,046 104,532 12,625 15,516
---------- ---------- ---------- ----------
Distributions to shareholders from:
Net investment income (12,558) (22,322) (103) (38)
Net realized gains (51,074) (50,845) (1,823) (4,043)
---------- ---------- ---------- ----------
Total distributions to shareholders (63,632) (73,167) (1,926) (4,081)
---------- ---------- ---------- ----------
From capital share transactions:
Proceeds from shares sold 173,363 232,092 177,216 146,675
Value of shares issued on merger (Note 8) -- 4,265 7,431 --
Reinvested dividends 62,305 71,554 753 1,072
Payments for shares redeemed (154,571) (283,633) (171,877) (140,831)
---------- ---------- ---------- ----------
Net increase (decrease) in net assets
from capital share transactions 81,097 24,278 13,523 6,916
---------- ---------- ---------- ----------
Net increase (decrease) in net assets 103,511 55,643 24,222 18,351
Net assets at beginning of period 686,808 631,165 59,974 41,623
---------- ---------- ---------- ----------
NET ASSETS AT END OF PERIOD $ 790,319 $ 686,808 $ 84,196 $ 59,974
========== ========== ========== ==========
CAPITAL TRANSACTIONS IN SHARES:
Sold 11,289 16,028 12,007 12,515
Issued on merger (Note 8) -- 301 529 --
Reinvested dividends 4,241 5,142 55 106
Redeemed (10,069) (19,575) (11,539) (12,039)
---------- ---------- ---------- ----------
Net increase (decrease) from capital share transactions 5,461 1,896 1,052 582
========== ========== ========== ==========
</TABLE>
The accompanying notes are an integral part of these financial statements.
62 FREMONT MUTUAL FUNDS
<PAGE>
FREMONT MUTUALS FUNDS, INC.
APRIL 30, 2000
<TABLE>
<CAPTION>
Emerging Markets U.S. Micro-Cap U.S. Small Cap
Fund Fund Fund
------------------------- ------------------------- -------------------------
4/30/00 10/31/99 4/30/00 10/31/99 4/30/00 10/31/99
---------- ---------- ---------- ---------- ---------- ----------
<S> <C> <C> <C> <C> <C>
$ (22) $ (65) $ 355 $ (1,933) $ (204) $ (115)
3,002 (1,163) 109,529 62,303 10,822 2,059
11 (7) -- -- -- --
(516) 4,021 59,273 79,635 28 6,869
2 (4) -- -- -- --
---------- ---------- ---------- ---------- ---------- ----------
2,477 2,782 169,157 140,005 10,646 8,813
---------- ---------- ---------- ---------- ---------- ----------
(465) -- -- -- -- --
-- -- (1,609) (53,551) (262) (1,080)
---------- ---------- ---------- ---------- ---------- ----------
(465) -- (1,609) (53,551) (262) (1,080)
---------- ---------- ---------- ---------- ---------- ----------
24,733 12,523 1,184,619 448,130 62,057 21,646
-- -- -- -- -- --
418 -- 1,489 43,583 248 1,023
(21,944) (12,459) (813,183) (397,680) (37,614) (8,190)
---------- ---------- ---------- ---------- ---------- ----------
3,207 64 372,925 94,033 24,691 14,479
---------- ---------- ---------- ---------- ---------- ----------
5,219 2,846 540,473 180,487 35,075 22,212
11,588 8,742 300,503 120,016 29,579 7,367
---------- ---------- ---------- ---------- ---------- ----------
$ 16,807 $ 11,588 $ 840,976 $ 300,503 $ 64,654 $ 29,579
========== ========== ========== ========== ========== ==========
2,322 1,731 27,701 17,299 2,687 1,611
-- -- -- -- -- --
44 -- 42 1,614 11 69
(2,084) (1,769) (18,126) (15,663) (1,592) (630)
---------- ---------- ---------- ---------- ---------- ----------
282 (38) 9,617 3,250 1,106 1,050
========== ========== ========== ========== ========== ==========
</TABLE>
The accompanying notes are an integral part of these financial statements.
FREMONT MUTUAL FUNDS 63
<PAGE>
FREMONT MUTUALS FUNDS, INC.
APRIL 30, 2000
STATEMENT OF CHANGES IN NET ASSETS
FOR THE SIX MONTHS ENDED APRIL 30, 2000 (UNAUDITED)
AND THE YEAR ENDED OCTOBER 31, 1999
(ALL NUMBERS IN THOUSANDS)
<TABLE>
<CAPTION>
Growth Real Estate Securities
Fund Fund
------------------------- -------------------------
4/30/00 10/31/99 4/30/00 10/31/99
---------- ---------- ---------- ----------
INCREASE (DECREASE) IN NET ASSETS:
From operations:
<S> <C> <C> <C> <C>
Net investment income (loss) $ 381 $ 1,222 $ 881 $ 1,413
Net realized gain (loss) from investments
and transactions in written options 5,113 16,478 (726) (2,698)
Net realized gain (loss) from foreign currency transactions -- -- -- --
Net unrealized appreciation (depreciation) on investments 3,583 15,054 1,882 1,057
Net unrealized appreciation (depreciation) on translation of
assets and liabilities in foreign currencies -- -- -- --
---------- ---------- ---------- ----------
Net increase (decrease) in net assets from operations 9,077 32,754 2,037 (228)
---------- ---------- ---------- ----------
Distributions to shareholders from:
Net investment income (229) (1,431) (1,038) (1,587)
Net realized gains (7,519) (28,835) -- --
Paid in capital -- -- -- (349)
---------- ---------- ---------- ----------
Total distributions to shareholders (7,748) (30,266) (1,038) (1,936)
---------- ---------- ---------- ----------
From capital share transactions:
Proceeds from shares sold 55,653 196,253 9,087 14,832
Reinvested dividends 6,162 17,970 921 1,723
Payments for shares redeemed (74,973) (233,327) (9,771) (16,374)
---------- ---------- ---------- ----------
Net increase (decrease) in net assets
from capital share transactions (13,158) (19,104) 237 181
Net increase (decrease) in net assets (11,829) (16,616) 1,236 (1,983)
Net assets at beginning of period 142,759 159,375 31,499 33,482
---------- ---------- ---------- ----------
NET ASSETS AT END OF PERIOD $ 130,930 $ 142,759 $ 32,735 $ 31,499
========== ========== ========== ==========
CAPITAL TRANSACTIONS IN SHARES:
Sold 3,572 12,281 1,198 1,854
Reinvested dividends 403 1,237 124 217
Redeemed (4,843) (14,665) (1,304) (2,069)
---------- ---------- ---------- ----------
Net increase (decrease) from capital share transactions (868) (1,147) 18 2
========== ========== ========== ==========
</TABLE>
The accompanying notes are an integral part of these financial statements.
64 FREMONT MUTUAL FUNDS
<PAGE>
FREMONT MUTUALS FUNDS, INC.
APRIL 30, 2000
<TABLE>
<CAPTION>
Bond Money Market California Intermediate
Fund Fund Tax-Free Fund
------------------------- ------------------------- -------------------------
4/30/00 10/31/99 4/30/00 10/31/99 4/30/00 10/31/99
---------- ---------- ---------- ---------- ---------- ----------
<S> <C> <C> <C> <C> <C>
$ 6,612 $ 12,371 $ 20,432 $ 35,543 $ 1,471 $ 3,069
875 (5,405) -- -- (174) 7
25 (226) -- -- -- --
(3,833) (7,778) -- -- (78) (3,492)
(32) 365 -- -- -- --
---------- ---------- ---------- ---------- ---------- ----------
3,647 (673) 20,432 35,543 1,219 (416)
---------- ---------- ---------- ---------- ---------- ----------
(5,304) (12,356) (20,432) (35,543) (1,471) (3,069)
-- (3,911) -- -- (8) (19)
-- -- -- -- -- --
---------- ---------- ---------- ---------- ---------- ----------
(5,304) (16,267) (20,432) (35,543) (1,479) (3,088)
---------- ---------- ---------- ---------- ---------- ----------
56,371 142,138 713,344 1,395,544 2,492 6,886
4,246 15,792 17,318 35,272 192 571
(81,332) (184,556) (832,913) (1,387,157) (6,670) (4,045)
---------- ---------- ---------- ---------- ---------- ----------
(20,715) (26,626) (102,251) 43,659 (3,986) 3,412
---------- ---------- ---------- ---------- ---------- ----------
(22,372) (43,566) (102,251) 43,659 (4,246) (92)
184,435 228,001 760,950 717,291 63,919 64,011
---------- ---------- ---------- ---------- ---------- ----------
$ 162,063 $ 184,435 $ 658,699 $ 760,950 $ 59,673 $ 63,919
========== ========== ========== ========== ========== ==========
5,876 14,118 713,344 1,395,179 233 617
445 1,578 17,318 35,637 18 52
(8,510) (18,442) (832,913) (1,387,157) (627) (369)
---------- ---------- ---------- ---------- ---------- ----------
(2,189) (2,746) (102,251) 43,659 (376) 300
========== ========== ========== ========== ========== ==========
</TABLE>
The accompanying notes are an integral part of these financial statements.
FREMONT MUTUAL FUNDS 65
<PAGE>
FREMONT MUTUALS FUNDS, INC.
FINANCIAL HIGHLIGHTS - APRIL 30, 2000
<TABLE>
<CAPTION>
GLOBAL FUND
(Unaudited)
Six Months Year Ended October 31
Ended -------------------------------------------------------------
April 30, 2000 1999 1998 1997 1996 1995
--------- --------- --------- --------- --------- ---------
SELECTED PER SHARE DATA
for one share outstanding during the period
<S> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD $ 14.75 $ 14.13 $ 14.16 $ 15.11 $ 14.24 $ 13.13
--------- --------- --------- --------- --------- ---------
INCOME FROM INVESTMENT OPERATIONS
Net investment income .24 .41 .34 .45 .39 .40
Net realized and unrealized gain 1.55 1.89 .17 1.31 1.49 1.24
--------- --------- --------- --------- --------- ---------
Total investment operations 1.79 2.30 .51 1.76 1.88 1.64
--------- --------- --------- --------- --------- ---------
LESS DISTRIBUTIONS
From net investment income (.25) (.50) (.25) (.52) (.44) (.50)
From net realized gains (1.10) (1.18) (.29) (2.19) (.57) (.03)
--------- --------- --------- --------- --------- ---------
Total distributions (1.35) (1.68) (.54) (2.71) (1.01) (.53)
--------- --------- --------- --------- --------- ---------
NET ASSET VALUE, END OF PERIOD $ 15.19 $ 14.75 $ 14.13 $ 14.16 $ 15.11 $ 14.24
========= ========= ========= ========= ========= =========
TOTAL RETURN 12.60% 17.37% 3.62% 13.01% 13.72% 12.78%
RATIOS AND SUPPLEMENTAL DATA
Net assets, end of period (000s omitted) $ 790.319 $ 686,808 $ 631,165 $ 665,747 $ 572,150 $ 482,355
Ratio of expenses to average net assets .88%* .86% .85% .85% .87% .88%
Ratio of net investment income to
average net assets 3.35%* 2.85% 2.80% 2.66% 2.66% 2.98%
Portfolio turnover rate 111% 113% 75% 48% 71% 83%
<CAPTION>
INTERNATIONAL GROWTH FUND
(Unaudited)
Six Months Year Ended October 31
Ended -------------------------------------------------------------
April 30, 2000 1999 1998 1997 1996 1995
--------- --------- --------- --------- --------- ---------
SELECTED PER SHARE DATA
for one share outstanding during the period
<S> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD $ 13.01 $ 10.34 $ 10.37 $ 10.40 $ 9.72 $ 9.79
--------- --------- --------- --------- --------- ---------
INCOME FROM INVESTMENT OPERATIONS
Net investment income (loss) (.10) --8 .05 .02 (.02) .10
Net realized and unrealized gain (loss) 2.40 3.69 .03 (.02) .71 (.09)
--------- --------- --------- --------- --------- ---------
Total investment operations 2.30 3.69 .08 -- .69 .01
--------- --------- --------- --------- --------- ---------
LESS DISTRIBUTIONS
From net investment income (.02) (.01) -- -- (.01) (.08)
From net realized gains (.42) (1.01) (.11) (.03) -- --
--------- --------- --------- --------- --------- ---------
Total distributions (.44) (1.02) (.11) (.03) (.01) (.08)
--------- --------- --------- --------- --------- ---------
NET ASSET VALUE, END OF PERIOD $ 14.87 $ 13.01 $ 10.34 $ 10.37 $ 10.40 $ 9.72
========= ========= ========= ========= ========= =========
TOTAL RETURN 17.92%1 38.70%1 .80%1 -0.01% 7.07% 0.13%
RATIOS AND SUPPLEMENTAL DATA
Net assets, end of period (000s omitted) $ 84,196 $ 59,974 $ 41,623 $ 38,643 $ 35,273 $ 32,156
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 1.65%* 1.74% 1.65% 1.50% 1.50% 1.50%
Ratio of net investment income (loss)
to average net assets -1.47%* .04% .53% .34% -.20% 1.19%
Portfolio turnover rate 45% 76% 106% 95% 74% 32%
</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 MUTUALS FUNDS, INC.
FINANCIAL HIGHLIGHTS - APRIL 30, 2000
<TABLE>
<CAPTION>
EMERGING MARKETS FUND
(Unaudited)
Six Months Year Ended October 31 Period from
Ended ----------------------------------- 6/24/96 to
April 30, 2000 1999 1998 1997 10/31/96
--------- --------- --------- --------- ---------
SELECTED PER SHARE DATA
for one share outstanding during the period
<S> <C> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD $ 8.02 $ 5.89 $ 9.58 $ 9.62 $ 10.00
--------- --------- --------- --------- ---------
INCOME FROM INVESTMENT OPERATIONS
Net investment income (loss) (.02) (.04) .09 .17 .10
Net realized and unrealized gain (loss) 1.96 2.17 (3.64) 1.03 (.41)
--------- --------- --------- --------- ---------
Total investment operations 1.94 2.13 (3.55) 1.20 (.31)
--------- --------- --------- --------- ---------
LESS DISTRIBUTIONS
From net investment income (.34) -- -- (.06) (.07)
From net realized gains -- -- (.14) (1.18) --
--------- --------- --------- --------- ---------
Total distributions (.34) -- (.14) (1.24) (.07)
--------- --------- --------- --------- ---------
NET ASSET VALUE, END OF PERIOD $ 9.62 $ 8.02 $ 5.89 $ 9.58 $ 9.62
========= ========= ========= ========= =========
TOTAL RETURN 24.14% 36.16% -37.59% 12.55% -3.12%*
RATIOS AND SUPPLEMENTAL DATA
Net assets, end of period (000s omitted) $ 16,807 $ 11,588 $ 8,742 $ 12,175 $ 3,772
Ratio of net expenses to average net assets2 1.49%* 1.50% 1.50% .26% --
Ratio of gross expenses to average net assets2 2.38%* 2.77% 2.34% 2.63% 4.95%*
Ratio of net investment income (loss)
to average net assets -.47%* -.70% .99% 2.04% 3.32%*
Portfolio turnover rate 167% 148% 135% 208% 7%
<CAPTION>
U.S. MICRO-CAP FUND
(Unaudited)
Six Months Year Ended October 31
Ended -------------------------------------------------------------
April 30, 2000 1999 1998 1997 1996 1995
--------- --------- --------- --------- --------- ---------
SELECTED PER SHARE DATA
for one share outstanding during the period
<S> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD $ 28.36 $ 16.34 $ 22.69 $ 19.63 $ 14.34 $ 10.34
--------- --------- --------- --------- --------- ---------
INCOME FROM INVESTMENT OPERATIONS
Net investment (loss) .02 (.18) (.25) (.10) (.04) (.05)
Net realized and unrealized gain (loss) 13.35 17.94 (4.86) 5.60 5.83 4.05
--------- --------- --------- --------- --------- ---------
Total investment operations 13.37 17.76 (5.11) 5.50 5.79 4.00
--------- --------- --------- --------- --------- ---------
LESS DISTRIBUTIONS
From net investment income -- -- -- -- -- --
From net realized gains (.12) (5.74) (1.24) (2.44) (.50) --
--------- --------- --------- --------- --------- ---------
Total distributions (.12) (5.74) (1.24) (2.44) (.50) --
--------- --------- --------- --------- --------- ---------
NET ASSET VALUE, END OF PERIOD $ 41.61 $ 28.36 $ 16.34 $ 22.69 $ 19.63 $ 14.34
========= ========= ========= ========= =========
TOTAL RETURN 47.21% 110.46% -23.45% 28.80%1 41.46%1 38.68%1
RATIOS AND SUPPLEMENTAL DATA
Net assets, end of period (000s omitted) $ 840,976 $ 300,503 $ 120,016 $ 171,507 $ 102,481 $ 7,792
Ratio of net expenses to average net assets3 1.57%* 1.82% 1.94% 1.88% 1.96% 2.04%
Ratio of gross expenses to average net assets3 1.57%* 1.82% 1.94% 1.90% 2.22% 2.50%
Ratio of net investment (loss)
to average net assets .09%* -.97% -1.22% -.67% -.51% -.67%
Portfolio turnover rate 116% 164% 170% 125% 81% 144%
</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 67
<PAGE>
FREMONT MUTUALS FUNDS, INC.
FINANCIAL HIGHLIGHTS - APRIL 30, 2000
<TABLE>
<CAPTION>
U.S. SMALL CAP FUND
(Unaudited)
Six Months Year Ended October 31 Period from
Ended ---------------------- 9/24/97 to
April 30, 2000 1999 1998 10/31/97
--------- --------- --------- ---------
SELECTED PER SHARE DATA
for one share outstanding during the period
<S> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD $ 15.74 $ 8.87 $ 9.57 $ 10.00
--------- --------- --------- ---------
INCOME FROM INVESTMENT OPERATIONS
Net investment income (loss) (.07) (.02) (.04) .02
Net realized and unrealized gain (loss) 6.09 7.49 (.66) (.42)
--------- --------- --------- ---------
Total investment operations 6.02 7.47 (.70) (.40)
--------- --------- --------- ---------
LESS DISTRIBUTIONS
From net investment income -- -- --4 (.02)
From net realized gains (.11) (.60) --4 (.01)
--------- --------- --------- ---------
Total distributions (.11) (.60) --4 (.03)
--------- --------- --------- ---------
NET ASSET VALUE, END OF PERIOD $ 21.65 $ 15.74 $ 8.87 $ 9.57
========= ========= ========= =========
TOTAL RETURN(1) 38.23% 84.60% -7.29% -4.06%
RATIOS AND SUPPLEMENTAL DATA
Net assets, end of period (000s omitted) $ 64,654 $ 29,579 $ 7,367 $ 5,350
Ratio of net expenses to average net assets2 1.50%* 1.50% 1.50% 1.50%*
Ratio of gross expenses to average net assets2 1.74%* 2.15% 2.85% 3.32%*
Ratio of net investment income (loss)
to average net assets -.66%* -.75% -.52% 1.81%*
Portfolio turnover rate 140% 161% 273% 8%
<CAPTION>
GROWTH FUND
(Unaudited)
Six Months Year Ended October 31
Ended -------------------------------------------------------------
April 30, 2000 1999 1998 1997 1996 1995
--------- --------- --------- --------- --------- ---------
SELECTED PER SHARE DATA
for one share outstanding during the period
<S> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD $ 15.70 $ 15.56 $ 14.96 $ 15.02 $ 13.06 $ 10.46
--------- --------- --------- --------- --------- ---------
INCOME FROM INVESTMENT OPERATIONS
Net investment income .05 .14 .20 .20 .10 .13
Net realized and unrealized gain 1.04 3.20 .87 3.43 2.65 2.74
--------- --------- --------- --------- --------- ---------
Total investment operations 1.09 3.34 1.07 3.63 2.75 2.87
--------- --------- --------- --------- --------- ---------
LESS DISTRIBUTIONS
From net investment income (.03) (.16) (.17) (.22) (.08) (.17)
From net realized gains (.84) (3.04) (.30) (3.47) (.71) (.10)
--------- --------- --------- --------- --------- ---------
Total distributions (.87) (3.20) (.47) (3.69) (.79) (.27)
--------- --------- --------- --------- --------- ---------
NET ASSET VALUE, END OF PERIOD $ 15.92 $ 15.70 $ 15.56 $ 14.96 $ 15.02 $ 13.06
========= ========= ========= ========= ========= =========
TOTAL RETURN 7.11% 24.24% 7.30% 29.26% 22.06% 28.12%1
RATIOS AND SUPPLEMENTAL DATA
Net assets, end of period (000s omitted) $ 130,930 $ 142,759 $ 159,375 $ 147,641 $ 78,624 $ 59,632
Ratio of net expenses to average net assets5 .85%* .82% .82% .85% .92% .97%
Ratio of gross expenses to average net assets5 .85%* .82% .82% .85% .92% 1.01%
Ratio of net investment income
to average net assets .56%* .82% 1.25% 1.44% .75% 1.02%
Portfolio turnover rate 82% 80% 111% 48% 129% 108%
</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 MUTUALS FUNDS, INC.
FINANCIAL HIGHLIGHTS - APRIL 30, 2000
<TABLE>
<CAPTION>
REAL ESTATE SECURITIES FUND
(Unaudited)
Six Months Period from
Ended Year Ended 12/31/97 to
April 30, 2000 October 31, 1999 10/31/98
--------- --------- ---------
SELECTED PER SHARE DATA
for one share outstanding during the period
<S> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD $ 7.51 $ 7.98 $ 10.00
--------- --------- ---------
INCOME FROM INVESTMENT OPERATIONS
Net investment income .21 .35 .19
Net realized and unrealized (loss) .16 (.34) (2.07)
--------- --------- ---------
Total investment operations .37 .01 (1.88)
--------- --------- ---------
LESS DISTRIBUTIONS
From net investment income (.11) (.39) (.14)
From net realized gains -- -- --
Return of capital distribution -- (.09) --
--------- --------- ---------
Total distributions (.11) (.48) (.14)
--------- --------- ---------
NET ASSET VALUE, END OF PERIOD $ 7.77 $ 7.51 $ 7.98
========= ========= =========
TOTAL RETURN1 6.97% -.07% -18.78%
RATIOS AND SUPPLEMENTAL DATA
Net assets, end of period (000s omitted) $ 32,738 $ 31,499 $ 33,482
Ratio of net expenses to average net assets2,6 1.50%* 1.50% 1.09%*
Ratio of gross expenses to average net assets2,6 1.96%* 1.88% 1.80%*
Ratio of net investment income to
average net assets 5.67%* 4.32% 4.10%*
Portfolio turnover rate 141% 198% 196%
<CAPTION>
BOND FUND
(Unaudited)
Six Months Year Ended October 31
Ended -------------------------------------------------------------
April 30, 2000 1999 1998 1997 1996 1995
--------- --------- --------- --------- --------- ---------
SELECTED PER SHARE DATA
for one share outstanding during the period
<S> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD $ 9.66 $ 10.44 $ 10.23 $ 9.99 $ 10.13 $ 9.29
--------- --------- --------- --------- --------- ---------
INCOME FROM INVESTMENT OPERATIONS
Net investment income .39 .60 .60 .67 .67 .65
Net realized and unrealized gain (loss) (.16) (.60) .41 .25 .11 .83
--------- --------- --------- --------- --------- ---------
Total investment operations (.23) -- 1.01 .92 .78 1.48
--------- --------- --------- --------- --------- ---------
LESS DISTRIBUTIONS
From net investment income (.30) (.60) (.62) (.66) (.70) (.64)
From net realized gains -- (.18) (.18) (.02) (.22) --
--------- --------- --------- --------- --------- ---------
Total distributions (.30) (.78) (.80) (.68) (.92) (.64)
--------- --------- --------- --------- --------- ---------
NET ASSET VALUE, END OF PERIOD $ 9.59 $ 9.66 $ 10.44 $ 10.23 $ 9.99 $ 10.13
========= ========= ========= ========= ========= =========
TOTAL RETURN1 2.45% .01% 10.31% 9.54% 8.18% 16.49%
RATIOS AND SUPPLEMENTAL DATA
Net assets, end of period (000s omitted) $ 162,063 $ 184,435 $ 228,001 $ 90,302 $ 70,577 $ 86,343
Ratio of net expenses to average net assets2,7 .68%* .60% .60% .61% .68% .60%
Ratio of gross expenses to average net assets2,7 .63%* .67% .72% .76% .83% .75%
Ratio of net investment income
to average net assets 7.89%* 6.01% 5.92% 6.40% 6.82% 6.69%
Portfolio turnover rate 407% 298% 256% 191% 154% 21%
</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 69
<PAGE>
FREMONT MUTUALS FUNDS, INC.
FINANCIAL HIGHLIGHTS - APRIL 30, 2000
<TABLE>
<CAPTION>
MONEY MARKET FUND
(Unaudited)
Six Months Year Ended October 31
Ended -------------------------------------------------------------
April 30, 2000 1999 1998 1997 1996 1995
--------- --------- --------- --------- --------- ---------
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 .03 .05 .05 .05 .05 .06
--------- --------- --------- --------- --------- ---------
Total investment operations .03 .05 .05 .05 .05 .06
--------- --------- --------- --------- --------- ---------
LESS DISTRIBUTIONS
From net investment income (.03) (.05) (.05) (.05) (.05) (.06)
--------- --------- --------- --------- --------- ---------
Total distributions (.03) (.05) (.05) (.05) (.05) (.06)
--------- --------- --------- --------- --------- ---------
NET ASSET VALUE, END OF PERIOD $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
========= ========= ========= ========= ========= =========
TOTAL RETURN1 2.78% 4.89% 5.45% 5.39% 5.34% 5.84%
RATIOS AND SUPPLEMENTAL DATA
Net assets, end of period (000s omitted) $ 658,699 $ 760,950 $ 717,291 $ 433,152 $ 329,652 $ 299,312
Ratio of net expenses to average net assets2 .42%* .37% .29% .30% .31% .30%
Ratio of gross expenses to average net assets2 .42%* .42% .44% .45% .46% .45%
Ratio of net investment income
to average net assets 5.52%* 4.83% 5.33% 5.26% 5.22% 5.70%
<CAPTION>
CALIFORNIA INTERMEDITATE TAX-FREE FUND
(Unaudited)
Six Months Year Ended October 31
Ended -------------------------------------------------------------
April 30, 2000 1999 1998 1997 1996 1995
--------- --------- --------- --------- --------- ---------
SELECTED PER SHARE DATA
for one share outstanding during the period
<S> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD $ 10.67 $ 11.25 $ 10.99 $ 10.80 $ 10.86 $ 10.13
--------- --------- --------- --------- --------- ---------
INCOME FROM INVESTMENT OPERATIONS
Net investment income .26 .51 .51 .51 .52 .53
Net realized and unrealized gain (loss) (.05) (.58) .26 .20 (.03) .73
--------- --------- --------- --------- --------- ---------
Total investment operations .21 (.07) .77 .71 .49 1.26
--------- --------- --------- --------- --------- ---------
LESS DISTRIBUTIONS
From net investment income (.25) (.51) (.51) (.51) (.52) (.53)
From net realized gains --4 -- -- (.01) (.03) --
--------- --------- --------- --------- --------- ---------
Total distributions (.25) (.51) (.51) (.52) (.55) (.53)
--------- --------- --------- --------- --------- ---------
NET ASSET VALUE, END OF PERIOD $ 10.63 $ 10.67 $ 11.25 $ 10.99 $ 10.80 $ 10.86
========= ========= ========= ========= ========= =========
TOTAL RETURN1 2.03% -.68% 7.16% 6.75% 4.63% 12.77%
RATIOS AND SUPPLEMENTAL DATA
Net assets, end of period (000s omitted) $ 59,673 $ 63,919 $ 64,011 $ 64,309 $ 51,156 $ 50,313
Ratio of net expenses to average net assets2 .48%* .45% .47% .49% .51% .50%
Ratio of gross expenses to average net assets2 .65%* .64% .67% .69% .73% .72%
Ratio of net investment income to average net asset 4.77%* 4.59% 4.55% 4.72% 4.86% 5.08%
Portfolio turnover rate 5% 6% 9% 6% 6% 18%
</TABLE>
For footnote references, see "Notes to Financial Highlights" on page 71.
The accompanying notes are an integral part of these financial statements.
70 FREMONT MUTUAL FUNDS
<PAGE>
FREMONT MUTUAL FUNDS, INC.
NOTES TO FINANCIAL HIGHLIGHTS - APRIL 30, 2000
The following notes are being used as referenced items in the Financial
Highlights of the Funds presented on pages 66 through 70:
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 January 8,
1997.
4 Distributions are less than $0.01 per share.
5 Administrative fees were voluntarily waived from August 14, 1992 to March 31,
1995.
6 Operating expenses were voluntarily limited to 0.50% prior to July 1, 1998.
7 Administrative fees were voluntarily waived in their entirety prior to March
1, 1998.
8 Less than $0.01.
* Annualized
<PAGE>
FREMONT MUTUAL FUNDS, INC.
NOTES TO FINANCIAL STATEMENTS - APRIL 30, 2000 (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 eleven series,
ten of which are covered by this report:
o the GLOBAL FUND
o the INTERNATIONAL GROWTH 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 has its own investment objective and maintains a totally
separate investment portfolio. The following is a summary of significant
accounting policies followed by the Funds. These policies are in conformity
with generally accepted accounting principles for investment companies.
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 in good faith by the Board of Directors.
Short-term notes and similar securities are included in investments at
amortized cost, which approximates market 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 market value. If the Fund's portfolio
had a remaining weighted average maturity of greater than 90 days the
portfolio would be stated at value based on recorded closing sales on a
national securities exchange or, in the absence of a recorded sale, at the
mean between the bid and asked prices.
B. SECURITY TRANSACTIONS
Security transactions are accounted for as of trade date. Realized gains
and losses on security transactions are determined on the basis of specific
identification for both financial statement and Federal income tax
purposes.
C. INVESTMENT INCOME, EXPENSES AND DISTRIBUTIONS
Dividends are recorded on the ex-dividend date, except that certain
dividends from foreign securities in the Global Fund, the International
Growth Fund and the Emerging Markets Fund may be recorded after ex-dividend
date based on when the Fund is informed of the dividend. Interest income
and estimated expenses are accrued daily. Bond discount and premium are
amortized as required by the Internal Revenue Code, as amended.
Distributions to shareholders are recorded on the ex-dividend date. 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.
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 capital gains.
Distributions to shareholders made by the California Intermediate Tax-Free
Fund during the six months ended April 30, 2000 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. 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 generally referred to as "book/tax" differences and are primarily due
to differing treatments for foreign currency transactions, losses deferred
due to wash sale rules, classification of gains/losses related to paydowns
and certain futures and options transactions.
Permanent 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.
72 FREMONT MUTUAL FUNDS
<PAGE>
FREMONT MUTUAL FUNDS, INC.
NOTES TO FINANCIAL STATEMENTS - APRIL 30, 2000 (UNAUDITED)
For Federal income tax purposes, certain Funds have capital loss carryovers
at October 31, 1999. 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 April 30, 2000:
Emerging Real Estate
Markets Securities Bond
Capital loss carryovers Fund Fund Fund
---------------------------------------------------------------------------
Expiring in:2006 $ 5,018,887 $ 2,868,690 $ --
2007 1,168,895 3,166,923 6,473,496
---------------------------------------------------------------------------
$ 6,187,782 $ 6,035,613 $ 6,473,496
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 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 gains (losses) 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 73
<PAGE>
FREMONT MUTUAL FUNDS, INC.
NOTES TO FINANCIAL STATEMENTS - APRIL 30, 2000 (UNAUDITED)
At April 30, 2000, the underlying values for open foreign currency contracts
were as follows:
<TABLE>
<CAPTION>
Net Unrealized
To Receive Foreign Settlement Initial Current Appreciation/
(To Deliver) Currency Date Value Value (Depreciation)
---------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Global Fund (3,363,000) Australian Dollar 06/30/00 $ (2,056,497) $ (1,964,160) $ 92,337
(50,000) Australian Dollar 05/04/00 (30,310) (29,188) 1,122
47,000 Australian Dollar 06/07/00 28,129 27,444 (685)
7,645,500 British Pound 06/30/00 12,117,142 11,886,459 (230,683)
(6,100,000) British Pound 05/02/00 (9,802,700) (9,479,400) 323,300
224,000 British Pound 05/10/00 357,581 348,118 (9,463)
(620,000) British Pound 05/23/00 (984,182) (963,604) 20,578
(2,081,000) British Pound 06/02/00 (3,283,443) (3,234,498) 48,945
(12,449) British Pound 05/04/00 (19,909) (19,345) 564
(91,990) British Pound 07/31/00 (142,263) (143,082) (819)
(33,443) British Pound 09/05/00 (52,916) (52,047) 870
5,560,000 Canadian Dollar 06/30/00 3,829,504 3,759,297 (70,208)
(152,000) Canadian Dollar 06/22/00 (104,460) (102,751) 1,709
(310,471) Canadian Dollar 06/07/00 (214,074) (209,806) 4,268
(193,000) Danish Krone 05/31/00 (24,939) (23,576) 1,363
10,061,200 Euro 06/30/00 9,581,816 9,203,885 (377,931)
(65,700,000) Euro 05/02/00 (65,187,345) (59,829,705) 5,357,640
167,000 Euro 05/09/00 160,940 151,909 5,485
(3,263,000) Euro 05/23/00 (3,029,696) (2,977,063) 52,632
(100,000) Euro 05/25/00 (94,281) (91,250) 3,031
(22,969) Euro 05/31/00 (20,945) (20,886) 60
20,361 Euro 05/04/00 19,909 18,543 (1,366)
220,944 Euro 06/07/00 214,074 201,791 (12,283)
1,151,686 Euro 07/19/00 1,094,563 1,054,945 (39,618)
156,101 Euro 07/31/00 142,263 143,087 824
110,181 Euro 08/28/00 107,693 101,205 (6,488)
53,879 Euro 09/05/00 52,916 49,516 (3,401)
533,919 Euro 02/20/01 528,686 496,518 (32,169)
(4,430,000,000) Japanese Yen 05/02/00 (41,268,368) 4,961,627 306,741
(709,326,100) Japanese Yen 06/30/00 (6,842,719) (6,626,739) 215,980
(54,463,000) Japanese Yen 05/10/00 (521,072) (504,287) 16,785
(82,689,000) Japanese Yen 05/23/00 (790,855) (767,344) 23,511
(7,075,331) Japanese Yen 05/01/00 (66,541) (65,494) 1,047
(2,463,014) Japanese Yen 05/02/00 (23,148) (22,799) 348
(113,722,110) Japanese Yen 07/19/00 (1,094,563) (1,066,111) 28,451
(23,893,860) Japanese Yen 08/28/00 (218,693) (225,669) (6,976)
(55,468,800) Japanese Yen 02/20/01 (528,686) (541,582) (12,896)
(2,116,000) New Zealand Dollar 05/04/00 (1,030,577) (1,027,635) 2,941
(6,500,000) New Zealand Dollar 05/02/00 (3,209,700) (3,156,725) 52,975
(112,000) New Zealand Dollar 06/01/00 (56,372) (54,391) 1,981
(1,221,000) Norwegian Krone 05/15/00 (145,496) (136,210) 9,286
(10,804,700) Swiss Franc 06/30/00 (6,492,232) (6,317,060) 175,172
-----------
$ 5,930,444
===========
Int'l Growth (387,017) Australian Dollar 07/19/00 (253,790) (226,084) $ 27,707
Fund (35,164) British Pound 05/02/00 (55,590) (54,656) 934
67,574 British Pound 05/08/00 104,842 105,034 192
(31,744) British Pound 05/04/00 (50,472) (49,330) 1,141
(132,593) British Pound 07/31/00 (207,552) (206,235) 1,317
</TABLE>
74 FREMONT MUTUAL FUNDS
<PAGE>
FREMONT MUTUAL FUNDS, INC.
NOTES TO FINANCIAL STATEMENTS - APRIL 30, 2000 (UNAUDITED)
<TABLE>
<CAPTION>
Net Unrealized
To Receive Foreign Settlement Initial Current Appreciation/
(To Deliver) Currency Date Value Value (Depreciation)
--------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Int'l Growth (46,694) British Pound 09/05/00 $ (72,703) $ (72,669) $ 34
Fund (cont.) (179,899) Canadian Dollar 06/07/00 (123,575) (121,570) 2,005
716 Euro 05/04/00 3,771 724 (3,046)
(22,969) Euro 05/31/00 (20,945) (20,886) 60
338,169 Euro 05/26/00 342,227 308,603 (33,624)
128,024 Euro 06/07/00 123,575 116,926 (6,650)
1,586,922 Euro 07/19/00 1,531,847 1,453,621 (78,226)
225,001 Euro 07/31/00 207,552 206,243 (1,310)
328,558 Euro 08/28/00 325,716 301,790 (23,925)
75,227 Euro 09/05/00 72,703 69,135 (3,568)
787,036 Euro 02/20/01 772,042 731,904 (40,139)
(7,075,331) Japanese Yen 05/01/00 (66,541) (65,494) 1,047
(4,926,028) Japanese Yen 05/02/00 (46,295) (45,599) 696
(35,801,920) Japanese Yen 05/26/00 (342,227) (332,423) 9,804
(131,905,320) Japanese Yen 07/19/00 (1,278,057) (1,236,574) 41,483
(70,174,760) Japanese Yen 08/28/00 (646,716) (662,776) (16,061)
(81,765,120) Japanese Yen 02/20/01 (772,042) (798,332) (26,289)
-----------
$ (146,418)
===========
Bond Fund (10,284,000) Euro 05/23/00 (9,548,694) (9,382,196) $ 166,498
(800,000) New Zealand Dollar 05/11/00 (391,292) (388,200) 3,092
-----------
$ 169,590
===========
</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 generate current income or to
reduce principal volatility.
At April 30, 2000, the open futures contracts were as follows:
Net Unrealized
Contracts Expiration Appreciation
To Buy Date (Depreciation)
---------------------------------------------------------------------------
GLOBAL FUND
CAC 40 10 Euro Index Future 17 Apr `00 $ 6,211
DAX Index Future 9 Apr `00 (70,170)
Euro Bond Future 78 Apr `00 134,644
FTSE 100 Index Future 30 Apr `00 (90,093)
Japanes Bond Future 4 Apr `00 74,115
June 10-year U.S. Treasury Bond Futures 51 Jun `00 126,838
June 30-year U.S. Treasury Bond Futures 47 Jun `00 98,439
Long Gilt Future 12 Apr `00 44,973
March 90-day Euro Dollar Futures 5 Mar `01 (2,635)
Municipal Bond Futures 5 Jun `00 (8,678)
Nikkei 300 Index Future (Osaka) 128 Apr `00 161,704
S&P 500 Index 35 Jun `00 4,050,293
TOPIX Index Future 40 Apr `00 140,695
-----------
$ 4,666,606
===========
FREMONT MUTUAL FUNDS 75
<PAGE>
FREMONT MUTUAL FUNDS, INC.
NOTES TO FINANCIAL STATEMENTS - APRIL 30, 2000 (UNAUDITED)
Net Unrealized
Contracts Expiration Appreciation
To Buy Date (Depreciation)
---------------------------------------------------------------------------
GROWTH FUND
S&P 500 Index 12 Jun `00 $ (171,900)
-----------
$ (171,900)
===========
BOND FUND
March 90-day Euro Dollars 95 Mar `01 $ (75,254)
June 10-year U.S. Treasury Bond Futures 9 Jun `00 (5,906)
June 30-year U.S. Treasury Bond Futures 183 Jun `00 424,902
-----------
$ 343,742
===========
Various U.S. Treasury securities, as footnoted on the Statement of
Investments, were held by brokers to satisfy the initial margin
requirements related to these contracts.
I. OPTIONS
Certain Funds may enter into options contracts. An option contract is a
contract in which the writer of the option grants the buyer of the option
the right to purchase from (call option) or sell to (put option) the writer
a designated instrument at a specified price within a specified period of
time. Certain options, including options on indices, will require cash
settlement by a Fund if the option is exercised.
If a Fund writes an option and the option expires unexercised, the Fund
will realize a capital gain to the extent of the amount received for the
option (the "premium"). If a Fund elects to close out the option, it will
recognize a gain or loss based on the difference between the cost of
closing the option and the initial premium received. If a Fund purchases an
option and allows the option to expire, it will realize a loss to the
extent of the premium paid. If a Fund elects to close out the option, it
will recognize a gain or loss equal to the difference between the cost of
acquiring the option and the amount realized upon the sale of the option.
The gain or loss recognized by a Fund upon the exercise of a written call
or purchased put option is adjusted for the amount of option premium. If a
written put or purchased call option is exercised, a Fund's cost basis of
the acquired security or currency would be the exercise price adjusted for
the amount of the option premium.
The liability representing a Fund's obligation under an exchange traded
written option or investment in the purchased option is valued at the last
sale price or, in absence of a sale, the mean between the closing bid and
ask prices or at the most recent ask price (bid for purchased options), if
no bid and ask prices are available. Over-the-counter written or purchased
options are valued using dealer-supplied quotations.
When a Fund writes a covered call option, the Fund forgoes, in exchange for
the premium, the opportunity to profit during the option period from an
increase in the market value of the underlying security or currency above
the exercise price. When a Fund writes a put option, it accepts the risk of
the potential inability of counterparties to meet the terms of their
contracts. A Fund's maximum exposure to purchased options is limited to the
premium initially paid. In addition, certain risks may arise upon entering
into options contracts, including the risk that an illiquid secondary
market will limit a Fund's ability to close out an option contract prior to
the expiration date, and that a change in the value of the option contract
may not correlate exactly with changes in the value of the securities or
currencies hedged.
J. REPURCHASE AGREEMENTS
As part of its cash reserve position, each Fund may enter into repurchase
agreements through which the Fund acquires a security (the "underlying
security") from the seller, a well-established securities dealer, or a bank
that is a member of the Federal Reserve System. At that time, the bank or
securities dealer agrees to repurchase the underlying security at the same
price, plus a specified amount of interest at a later date, generally for a
period of less than one week. The seller must maintain on a daily basis,
with the Fund's custodian, collateral equal to at least 100% of the
repurchase price, including accrued interest. At April 30, 2000, all
outstanding repurchase agreements held by the funds had been entered into
on April 28, 2000.
K. SWAP AGREEMENTS
During the year ended April 30, 2000, the Bond Fund entered into a swap
agreement to protect the value of specific foreign fixed income securities.
In a swap transaction, two parties agree to exchange the returns earned or
realized on particular predetermined investments. The swap agreement
entered by the Fund calculates the obligations of the parties to the
agreement on a "net basis". The Fund's obligations will generally be equal
only to the net amount to be paid or received under the agreement based on
the relative values of the positions held by each party (the "net amount").
The Fund's obligations under the swap agreement will be accrued daily and
any accrued but unpaid net amounts owed to a swap counterparty will be
covered by the maintenance of a segregated account consisting of cash, U.S.
Government securities, or high-grade debt obligations, to avoid any
potential leveraging of the Fund's portfolio.
76 FREMONT MUTUAL FUNDS
<PAGE>
FREMONT MUTUAL FUNDS, INC.
NOTES TO FINANCIAL STATEMENTS - APRIL 30, 2000 (UNAUDITED)
The Fund bears the risk of loss of the amount expected to be received under
the swap agreement in the event of the default or bankruptcy of the swap
counterparty. The Fund can enter into swap agreements only with
counterparties that would be eligible for consideration as repurchase
agreement counterparties under the Fund's repurchase agreement guidelines.
The Fund records a net receivable or payable for the amount expected to be
received or paid under the agreement. At April 30, 2000, the Bond Fund has
a net payable of $14,618 due to a swap agreement.
At April 30, 2000, the Fremont Bond Fund had the following open swap
agreements:
<TABLE>
<CAPTION>
Notion Credit Termination Net Receivable/
Underlying Security Amount Default Rate Date (Payable)
---------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Republic of Argentina, 9.250%, 2/23/01 $1,700,000 5.70% 03/28/01 $ (9,152)
Republic of Argentina, 9.250%, 2/23/01 800,000 6.15% 03/22/01 (5,467)
---------- --------
$2,500,000 $(14,618)
========== ========
</TABLE>
L. REVERSE REPURCHASE AGREEMENTS
During the six months ended April 30, 2000, the Fremont Bond Fund entered
into reverse purchase agreements with certain brokers. Reverse pruchase
agreements involve the sale of a portfolio-eligible security by the Fund,
coupled with an agreement to repurchase the security at a specified date
and price. Reverse repurchase agreements involve the risk that the market
value of securities pledged as collateral may decline below the repurchase
price of the securities sold by the Fund which it is obligated to
repurchase.
Such transactions are accounted for as a borrowing by the Fund and are
subject to the Fund's overall restriction on borrowing under which it must
maintain asset coverage of at least 300%.
The difference between the selling price and the repurchase price is
accounted for as interest expense. At April 30, 2000, the Fremont Bond Fund
had an outstanding reverse repurchase agreement of $40,198,000 with Goldman
Sachs & Co.
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
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 contractually waived and/or reimbursed some of its fees
for these Funds. The waivers may be changed in the future.
State Street Bank & Trust Company ("State Street") serves as custodian and
investment accounting agent for the Fremont Funds. All fees charged by
State Street are expenses of the Funds, however, fees for custody services
are subject to reductions by credits earned on the cash balances of the
Funds held by State Street as custodian.
FREMONT MUTUAL FUNDS 77
<PAGE>
FREMONT MUTUAL FUNDS, INC.
NOTES TO FINANCIAL STATEMENTS - APRIL 30, 2000 (UNAUDITED)
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 Bond Fund and the Money Market Fund, all fees waived in the past
cannot be recouped in the future.
For the International Growth 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, the 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 Emerging Markets Fund, the U.S.
Small Cap Fund and the Real Estate Securities Fund the Advisor has
contractually limited the total operating expenses to 1.50% of average net
assets. For the six months ended April 30, 2000, the Advisor reimbursed
expenses of $58,901, $59,249, $74,779 and $71,547, respectively, for the
International Growth Fund, the Emerging Markets Fund, the U.S. Small Cap
Fund and the Real Estate Securities Fund. The Advisor has not recouped
waivers and reimbursements of $184,298, $138,455, $269,067 and $329,615,
respectively, from the International Growth Fund, the Emerging Markets
Fund, the U.S. Small Cap Fund and the Real Estate Securities Fund as of
April 30, 2000.
For the Bond Fund, the Advisor has contractually waived .05% out of the
.15% administrative fee beginning on March 1, 1999. Prior to March 1, 2000,
the Advisor voluntarily waived .10% out of the .15% administrative fee. For
the six months ended April 30, 2000, the Advisor waived administrative fees
of $41,964 for the Bond Fund.
For the California Intermediate Tax-Free Fund, the Advisor has contractualy
limited the total operating expenses to .49% of average net assets
beginning March 1, 1999. For the six months ended April 30, 2000, the
Advisor reimbursed expenses of $52,778 for the California Intermediate
Tax-Free Fund. The Advisor has not recouped waivers and reimbursements of
$114,639 for the California Intermediate Tax-Free Fund for the six months
ended April 30, 2000.
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 that 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 .25% of
a Fund's average daily net assets. All payments are reviewed by the Board
of Directors.
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, 2000, follows:
<TABLE>
<CAPTION>
Share Aggregate Aggregate Net Share
Balance Purchase Sales Realized Balance Value
Issuer 10/31/99 Cost Cost Gain/(Loss) Income 4/30/00 4/30/00
---------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
Aaon, Inc. -- $ 11,545,564 $2,278,706 $ 167,517 $ -- 603,800 $ 12,679,800
California Micro Devices Corp. -- $ 14,804,808 $ -- $ -- $ -- 1,004,100 $ 21,086,100
Computer Outsourcing Services -- $ 4,969,756 $ -- $ -- $ -- 255,100 $ 5,404,931
Datalink Corp. -- $ 14,451,808 $1,671,754 $ 824,147 $ -- 778,500 $ 12,942,562
Exigent International, Inc. 317,500 $ 903,848 $ -- $ -- $ -- 485,710 $ 1,183,918
Fusion Medical Technologies, Inc. -- $ 8,784,634 $ -- $ -- $ -- 665,100 $ 11,639,250
Impco Technologies, Inc. -- $ 7,555,889 $ -- $ -- $ -- 494,800 $ 10,019,700
Jore Corp. -- $ 5,910,558 $ -- $ -- $ -- 714,400 $ 4,197,100
MDSI Mobile Data Solutions 349,000 $ 16,576,911 $2,585,338 $ (391,715) $ -- 606,300 $ 21,220,500
Merix Corp. -- $ 7,034,400 $ -- $ -- $ -- 462,800 $ 10,123,750
Netplex Group -- $ 11,248,370 $ 653,993 $(1,096,168) $ -- 1,027,400 $ 4,045,388
Northern Technologies
International Corp. 258,950 $ 2,641,536 $ -- $ -- 347,850 $ 2,391,469
Spectrum Control, Inc. -- $ 6,896,111 $1,345,881 $ 271,144 $ -- 644,100 $ 6,481,256
-------------------------------------------------- ------------
$113,324,193 $8,535,672 $ (225,075) $ -- $123,415,724
================================================== ============
</TABLE>
78 FREMONT MUTUAL FUNDS
<PAGE>
FREMONT MUTUAL FUNDS, INC.
NOTES TO FINANCIAL STATEMENTS - APRIL 30, 2000 (UNAUDITED)
OTHER RELATED PARTIES
At April 30, 2000, 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 60%
International Growth Fund 62%
Emerging Markets Fund 37%
U.S. Small Cap Fund 26%
Growth Fund 19%
Real Estate Securities Fund 7%
Bond Fund 54%
Money Market Fund 84%
California Intermediate Tax-Free Fund 69%
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 receives compensation for services
as officers and/or directors of the Funds.
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, 2000 were as follows:
<TABLE>
<CAPTION>
Purchases Proceeds
-----------------------------------
LONG-TERM SECURITIES EXCLUDING U.S. GOVERNMENT SECURITIES:
<S> <C> <C>
Global Fund $ 296,173,445 $ 360,581,530
International Growth Fund 27,162,230 15,093,123
Emerging Markets Fund 13,795,599 11,047,527
U.S. Micro-Cap Fund 515,981,818 305,073,380
U.S. Small Cap Fund 51,900,616 36,723,576
Growth Fund 47,101,654 72,643,492
Real Estate Securities Fund 16,570,591 13,912,923
Bond Fund 36,288,386 55,008,384
California Intermediate Tax-Free Fund 1,478,090 5,545,491
LONG-TERM U.S. GOVERNMENT SECURITIES:
Global Fund $ 46,784,807 $ 37,141,010
Bond Fund 586,057,479 579,416,589
</TABLE>
Transactions in written put and call options for the six months ended April
30, 2000 for the Global Fund and the Bond Fund were as follows:
<TABLE>
<CAPTION>
Global Fund Bond Fund
Amount of Premiums Number of Contracts Amount of Premiums Number of Contracts
------------------ ------------------- ------------------ ------------------
<S> <C> <C> <C> <C>
Options outstanding at October 31, 1999 $ 16,898 27 $ 450,122 1,190
Options sold 112,234 24 224,182 131,885
Options cancelled in closing purchase transactions -- -- (74,947) (50,154)
Options expired prior to exercise (119,231) (40) (489,195) (82,709)
Options exercised -- -- -- --
--------------------------- ----------------------------
Options outstanding at April 30, 2000 $ 9,901 11 $ 110,162 212
========= ==== ========== =======
</TABLE>
FREMONT MUTUAL FUNDS 79
<PAGE>
FREMONT MUTUAL FUNDS, INC.
NOTES TO FINANCIAL STATEMENTS - APRIL 30, 2000 (UNAUDITED)
The following written options were outstanding at April 30, 2000:
<TABLE>
<CAPTION>
Number of Exercise Expiration
Name of Issuer Contracts Price Date Value
-----------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
GLOBAL FUND
CALL OPTIONS: March 90 Day Euro Dollar Futures 2 93.25 03/01 $ 500
PUT OPTIONS: LIF 3-month Euribor 5 96.00 09/00 2,138
LIF 90-day U.K. Libor 2 93.00 09/00 389
CME March 90 Day Euro Dollar Futures 2 92.75 03/01 1,650
---------
$ 4,677
=========
BOND FUND
CALL OPTIONS: CME March 90 Day Euro Dollar Futures 16 93.25 03/01 $ 4,000
CBOT June 10-year U.S. Treasury Bond Futures 11 98.00 06/00 2,750
CBOT June 10-year U.S. Treasury Bond Futures 11 99.00 06/00 859
CBOT June 30-year U.S. Treasury Bond Futures 2 98.00 06/00 625
CBOT June 30-year U.S. Treasury Bond Futures 39 100.00 06/00 1,828
PUT OPTIONS: CME March 90-day Euro Dollar Futures 16 92.75 03/01 13,200
CME December 90-day Euro Dollar Futures 2 93.00 12/00 1,050
CME December 90-day Euro Dollar Futures 35 93.50 12/00 53,375
CBOT June 5-year U.S. Treasury Bond Futures 58 96.00 06/00 3,625
CBOT June 10-year U.S. Treasury Bond Futures 11 95.00 06/00 1,375
CBOT June 10-year U.S. Treasury Bond Futures 11 96.00 06/00 3,266
---------
$ 85,953
=========
</TABLE>
CBOT - Chicago Board of Trade
CME - Chicago Mercantile Exchange
LIF - London International Financial Futures Exchange
The Global Fund and the Bond Fund received premiums of $9,901 and $110,162
on these contracts and have unrealized gains of $5,223 and $24,208,
respectively. The notional value underlying these contracts for the Global
Fund and the Bond Fund are $1,991,250 and $30,018,250, respectively.
5. PORTFOLIO CONCENTRATIONS
There are certain investment concentrations of risk which may subject each
Fund more significantly to economic changes occurring in certain segments
or industries.
6. UNREALIZED APPRECIATION (DEPRECIATION) - TAX BASIS
At April 30, 2000, 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 $728,122,941 $101,436,208 $44,807,295 $ 56,628,913
International Growth Fund 61,646,447 24,817,312 (3,784,229) 21,033,083
Emerging Markets Fund 15,464,978 3,053,440 (2,125,795) 927,645
U.S. Micro-Cap Fund 721,335,969 181,696,189 (55,345,137) 126,351,052
U.S. Small Cap Fund 57,865,015 14,707,643 (7,678,479) 7,029,164
Growth Fund 99,238,715 36,284,462 (4,812,692) 31,471,770
Real Estate Securities Fund 32,836,756 1,845,675 (2,102,437) (256,762)
Bond Fund 218,582,919 669,964 (8,500,168) 7,830,204
Money Market Fund 659,706,904 -- -- --
California Intermediate Tax-Free Fund 58,411,942 1,249,389 (555,843) 693,546
</TABLE>
80 FREMONT MUTUAL FUNDS
<PAGE>
FREMONT MUTUAL FUNDS, INC.
NOTES TO FINANCIAL STATEMENTS - APRIL 30, 2000 (UNAUDITED)
7. LINE OF CREDIT
The Investment Company has a Line of Credit Arrangement ("LOC") with State
Street Bank & Trust Company, to be used for extraordinary or emer-gency
purposes, primarily to cover redemption payments. Each Fund's borrowings
cannot exceed 20% of each Fund's net assets. Combined bor-rowings of all
Funds cannot exceed the $75 million cap 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.
Borrowing activity for the six months ended April 30, 2000 was as follows:
Average Maximum
Amount Amount Interest
Outstanding Outstanding Expense
--------------------------------------------------------------------------------
Emerging Markets Fund $ 57,614 $2,300,000 $ 4,204
California Tax-Free Fund 40,680 2,679,000 3,433
Money Market Fund 852 155,000 75
International Growth Fund 632 115,000 74
Real Estate Securities Fund 6,747 538,000 204
Growth Fund 22,973 1,898,000 1,168
Bond Fund 921 167,000 29
Global Fund 10,484 1,908,000 339
----------
$ 9,526
==========
8. SIGNIFICANT EVENTS
The International Small Cap Fund ceased operation effective December 17,
1999. The International Small Cap Fund was reorganized and merged its net
assets into the International Growth Fund. This merger was accomplished by
a tax-free exchange of 528,893 shares valued at $14.05 per share of the
International Growth Fund for the net assets of the International Small Cap
Fund which aggregated $7,430,945, including $621,986 of unreal-ized
appreciation. The combined net assets of the Fremont International Growth
Fund immediately after the merger were $75,339,690.
FREMONT MUTUAL FUNDS 81
<PAGE>
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50 Beale Street, Suite 100
San Francisco, CA 94105
www.fremontfunds.com
[LOGO]
Distributed by First Fund Distributors, Inc., San Francisco, CA 94105
BR001a-0006
