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FREMONT MUTUAL FUNDS, INC.
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Annual Report | October 31, 2000
fremont
FREMONT INVESTMENT ADVISORS
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A MESSAGE FROM MICHAEL H. KOSICH,
PRESIDENT OF FREMONT MUTUAL FUNDS, INC.
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Dear Fellow Shareholder,
Greed and fear are said to be the two dominant emotions impacting investor
behavior. During the first four months of this reporting period, greed held
sway, with investors "chasing" exceptional returns in technology stocks. In
early March, greed gave way to fear--first, that valuations were simply too
high, and in mid-summer, that third quarter earnings would fail to live up to
expectations. Indeed, several high profile U.S. multi-nationals and leading
technology companies either reported disappointing third quarter earnings or
warned that future earnings were not going to meet consensus estimates. With the
exception of brief rallies in August and the last week of October, stocks
trended lower from late spring through the end of fiscal 2000. We witnessed a
similar performance pattern in international equities markets, which were
confronted by additional challenges, most notably rapidly rising oil prices and
a plummeting euro.
As I write, global stock markets continue to flounder as investors wrestle with
a host of economic and market issues. Our equities funds' portfolio managers
face the same challenge -- interpreting economic and market trends and deciding
how best to respond to the changing environment. They will share their current
thoughts with you in the following Annual Report. As should be expected, the
managers have different opinions on these issues and favor different investment
strategies. But, they all agree that over the long term, the financial markets
will reward investors for their discipline and patience.
Highlights this year include Money Magazine citing the Fremont U.S. Small Cap
Fund as one of the top 100 mutual funds in its June, 2000 issue and Mutual Funds
Magazine pronouncing the Fremont Bond Fund as one of the top 10 funds to buy in
2001 in its recently published December, 2000 issue.
On October 4, 2000, Fremont Investment Advisors announced the appointment of
Nancy Tengler, the former President and Chief Investment Officer of Global
Alliance Value Investors, Ltd., as its new President and CIO. Nancy brings a
wealth of experience and an admirable track record of investment success to the
FIA team. In 2001, we plan to offer a new value oriented growth fund with Nancy
Tengler at the helm.
After more than 30 years in the investment business, I've decided to retire at
year-end. Nancy will also be succeeding me as President of Fremont Funds. I have
enjoyed my tenure at Fremont and am confident I am leaving the firm in good
hands.
Sincerely,
/s/ Michael H. Kosich
Michael H. Kosich
President
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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
Report of Independent Accountants 22
SCHEDULES OF INVESTMENTS IN SECURITIES AND NET ASSETS
Fremont Global Fund 23
Fremont International Growth Fund 38
Fremont Emerging Markets Fund 41
Fremont U.S. Micro-Cap Fund 43
Fremont U.S. Small Cap Fund 45
Fremont Growth Fund 46
Fremont Real Estate Securities Fund 48
Fremont Bond Fund 49
Fremont Money Market Fund 53
Fremont California Intermediate Tax-Free Fund 56
Notes to Schedules of Investments in Securities and Net Assets,
Portfolio Abbreviations & Currency Abbreviations 58
Country Diversification 59
COMBINED FINANCIAL STATEMENTS
Statements of Assets and Liabilities 60
Statements of Operations 64
Statements of Changes in Net Assets 68
Statement of Cash Flows 72
FINANCIAL HIGHLIGHTS 73
NOTES TO FINANCIAL STATEMENTS 79
TAX DESIGNATION 91
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FREMONT GLOBAL FUND
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The Fremont Asset Allocation
Committee, Portfolio Managers
for Fremont Global Fund
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Dave Redo, Nancy Tengler, 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 twelve-month period ended October 31, 2000, the Fremont Global Fund
returned 8.86% compared to Lipper Global Flexible Fund Average's 7.65%. For the
six-month period ended October 31, the Fund lagged the benchmark slightly,
declining 3.31% compared to the Lipper benchmark's loss of 2.20%. We are pleased
to have achieved solid gains in fiscal 2000's uneven and volatile global
markets.
The benefits of diversification in our U.S. equities portfolio were clearly
demonstrated during the course of the year. Through the first four months of
fiscal 2000, our technology sector holdings excelled, (particularly in the small
and micro-cap classes), while investments in value oriented industry groups such
as energy and financial services lagged. When the tech sector began retreating
in March, our energy and financial services holdings performed quite well,
buoying the portfolio. Our utilities investments were strong throughout the
year.
Part of our risk-averse investment strategy has been to take some profits in
asset classes that have performed particularly well and to put this money into
investments that have under-performed. Currently, we are leaning toward modestly
reducing our fixed income exposure and increasing our commitment to U.S.
technology stocks, which are now priced more attractively.
Results from global equities allocation strategies were mixed. Our
over-weighting in UK/European equities and under-weighting in U.S. stocks
benefited the portfolio in the first half of the fiscal year as most European
markets outperformed. It restrained returns in the second half as rising oil
prices and the weak euro undermined European equities markets.
At the close of this reporting period, the Fund had a near neutral weighting in
equities (64%), with a modest over-weighting in international stocks and
under-weighting in U.S. equities. Fixed income investments comprised 32% of
assets and the remaining 4% was in cash reserves.
We continue to over-weight UK/ European equities (59% of our international
equities portfolio) and under-weight U.S. stocks. The gap between GDP growth in
the U.S. and Europe appears to be narrowing--our 2001 projections are for 3.5%
growth for the U.S. versus about 3% for Europe. This should help stem capital
outflows from Europe and stabilize the euro. Should other European countries
follow the lead of Germany, which eliminated capital gains taxes on corporate
asset sales, corporate restructuring should accelerate, enhancing earnings
momentum.
We remain under-weighted in Japan, concentrating in export-oriented technology
and electronics companies. The Japanese economic recovery is still quite
fragile. The banks remain weak, and recently several large insurance companies
have filed for bankruptcy. The government continues to pump money into the
economy, but the Japanese consumer is still not spending. The much publicized
restructuring of corporate Japan will have benefits over the long term. However,
over the short term, this translates into job losses and further erosion in
consumer confidence.
Global fixed income investments delivered solid returns in fiscal 2000 as market
interest rates declined through most of the reporting period. We were
over-weighted in U.S. bonds, which performed quite well, and under-weighted in
the European and Japanese bond markets, which under-performed the U. S. market.
Also, our bias toward high quality corporate and government agency bonds in the
domestic fixed income portfolio served us well as both these sectors
out-performed U.S. Treasury bonds. Finally, we earned excellent returns from our
emerging market fixed income investments.
2 FREMONT MUTUAL FUNDS
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Looking ahead, we will continue to carefully monitor U.S. economic activity. We
believe the U.S. economy will land softly. However, if we see evidence that its
final decent may be bumpier than anticipated, we will probably decrease our
exposure to corporate bonds and increase our commitments to U.S. Treasuries,
which would likely benefit from a "flight to quality" if equities and fixed
income investors fasten their seatbelts. We expect the Federal Reserve to hold
interest rates at the same level at least through first quarter 2001.
Recently, we have cautiously increased our exposure to European bonds. In our
opinion, they offer good fundamental value. If, as we anticipate, oil prices
decline in the year ahead, and the euro stabilizes and/or trends higher,
European credits should perform quite well.
In closing, the Fund did a good job in fiscal 2000's challenging global
financial markets, demonstrating the effectiveness of prudent asset allocation,
diversification, and research driven securities selection.
Sincerely,
/s/ Dave Redo /s/ Pete Landini
/s/ Nancy Tengler /s/ Sandie Kinchen
/s/ Al Kirschbaum /s/ Andrew Pang
The Fremont Asset Allocation
Committee
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FREMONT GLOBAL FUND
GEOGRAPHIC DIVERSIFICATION
AS OF 10/31/00
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United States 61.5%
Emerging Markets
Latin America 2.5%
Europe 22.9%
Canada 2.8%
Pacific Rim 4.6%
Japan 5.7%
ANNUAL RETURNS
11/18/88-10/31/89* +13.71%
11/01/89-10/31/90 -2.64%
11/01/90-10/31/91 +18.38%
11/01/91-10/31/92 +7.10%
11/01/92-10/31/93 +17.51%
11/01/93-10/31/94 +1.74%
11/01/94-10/31/95 +12.78%
11/01/95-10/31/96 +13.72%
11/01/96-10/31/97 +13.01%
11/01/97-10/31/98 +3.62%
11/01/98-10/31/99 +17.37%
11/01/99-10/31/00 +8.86%
TOP TEN HOLDINGS
S&P 500 Futures, 241 Contracts,
Exp. Dec. 2000 ............................... 10.9%
U.S. Treasury Inflation Indexed Bond, 3.875%,
01/15/09 ..................................... 0.7%
Bundesobligation, 3.750%, 08/26/03 ............. 0.7%
Exxon Mobil Corp. .............................. 0.6%
GNMA I TBA, 6.500%, 11/23/30 ................... 0.6%
U.S. Treasury Inflation Indexed Bond, 3.625%,
07/15/02 ..................................... 0.5%
U.S. Treasury Inflation Indexed Bond, 3.875%,
04/15/29 ..................................... 0.5%
U.S. Treasury Note, 5.625%, 05/15/08 ........... 0.5%
FNMA, 7.125%, 06/15/10 ......................... 0.5%
General Electric Co. ........................... 0.5%
TOTAL ..................................... 16.0%
GROWTH OF $10,000(1)
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10/31/00
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S&P 500 index ($71,929)
Fremont Global Fund ($32,200)
Salomon Non-US Govt. Bond Index
(Currency Hedged) ($25,382)
Lehman Bros. Intermediate
Govt./Corp. Bond Index ($24,176)
MSCI EAFE Index ($19,162)
AVERAGE ANNUAL RETURNS FOR PERIODS ENDED 10/31/00
1 Year 5 Years 10 Years Since Inception (11/18/88)
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8.86% 11.21% 11.27% 10.28%
*Unannualized. 1 Assumes initial investment of $10,000 on inception date,
November 18, 1988. Performance data illustrated is historical. Past performance
is not predictive of future performance. Share price and return will vary so
that a gain or loss may be realized when shares are sold. All performance
figures assume reinvestment of dividends. Management fees and other expenses are
included in the Fund's performance; however, fees and expenses are not
incorporated in the S&P 500 Index, the Salomon Non-U.S. Government Bond Index
(currency hedged), the Lehman Bros. Intermediate Government/Corporate Bond
Index, or the Morgan Stanley Capital International EAFE Index.
FREMONT MUTUAL FUNDS 3
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FREMONT INTERNATIONAL GROWTH FUND
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The Portfolio Counselor Team
Capital Guardian Trust Company
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Lionel M. Sauvage, David I. Fisher, Nilly Sikorsky, Hartmut Giesecke, Robert
Ronus, Nancy J. Kyle, Rudolf M. Staehlin, Richard N. Havas, Arthur Gromadzki,
and Christopher Reed
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. Ten 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 and twelve month periods ended October 31, 2000, the Fremont
International Growth Fund declined 17.35% and 2.54% compared to the Morgan
Stanley Capital International Europe, Australia, and Far East (EAFE) Index's
9.00% and 2.89% loss.
Technology and telecommunications stocks had the greatest impact on returns in
fiscal 2000. We over-weighted both sectors in the first half and were grandly
rewarded as most of our tech and telecom holdings provided generous returns.
However, our commitment to these sectors penalized performance in the second
half. We made some good tactical adjustments--reducing exposure to some
semiconductor manufacturers, long distance and local wireline companies, and
competitive local exchange carriers, all of which got hit particularly hard in
the global tech and telecom stock retreat. We made some tactical errors as well,
most notably increasing our exposure to technology in August, well before the
group bottomed in late October.
Despite disappointing performance in second half fiscal 2000, we remain
committed to technology and telecommunications. We think technology spending
will rebound in 2001, particularly in the corporate computer, internet server,
semiconductor, and business software markets. We believe telecommunications
spending will also increase, especially in the wireless world. European
telecommunications companies spent a fortune on wireless spectrum at the
auctions held this Spring and must build out third generation wireless systems
next year.
But, more important than being in the right sectors, is investing in the right
companies. Nokia, which gained 28% following its third quarter earnings release,
is a good example. After growing sales by 59% in third quarter, Nokia currently
controls about one third of the global wireless handset market. Earnings are
projected to grow by 30%-35% in the coming year. Contrasting Nokia to its
leading competitors Motorola (respectable margins, but little volume growth) and
Ericsson (volume growth, but no profits), it is clearly the premier company in
the industry. Nokia has the best products on the market today and a history of
being first to market with new, technologically improved products. The company
should be a prime beneficiary of new Internet oriented wireless services being
rolled out in the years ahead.
In second half fiscal 2000, most of our Japanese investments suffered in a
plummeting market. But, we are finally seeing meaningful changes in Japan's
corporate culture, best exemplified by the Japanese auto manufacturers. Ford
owns a big piece of Mazda, Daimler Benz has bought a chunk of Mitsubishi, and
Renault now controls Nissan. Foreign investment in Japanese companies is not
new. But, foreign management is. All three of these companies are now being run
by their American and European partners who are geared to making profits, rather
than just growing revenues. Japanese banks are also coming around, writing off
bad loans and focusing on profitability rather than size. Japanese companies are
no longer being rescued from bankruptcy. Sogo, a major Japanese retailer has
boarded up the windows of its upscale stores throughout
4 FREMONT MUTUAL FUNDS
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the country. Several life insurance companies have recently filed for
bankruptcy. Stock options are becoming a meaningful component of management and
worker compensation. We believe Japan is finally moving toward laissez-faire
Western style capitalism. The Japanese consumer will have to play a role in an
economic revival. With corporate profit recovery and increased bonuses (a
significant component of the Japanese compensation structure), consumer spending
should increase.
The plunging euro has been a problem for European economies and our portfolio.
Rather than hedging the currency, we have concentrated our investments in export
oriented companies that benefit from a weak euro. However, since we must value
our European investments in U.S. dollars, performance was negatively impacted by
unfavorable currency translation. We believe European tax reform will help prop
up the euro and Euro Zone economies. Germany has just passed a big tax reduction
package and eliminated capital gains for corporations selling assets. France and
Italy may follow suit. This will encourage further restructuring and make
European companies more competitive. It will also help stem the outflow of
capital to other economies.
In closing, international equities investing posed significant challenges in
fiscal 2000. We may continue to be confronted by difficult markets in fiscal
2001. However, by investing in the right industry groups, and even more
importantly, the right stocks, we are confident we can maximize returns in the
years ahead.
Sincerely,
/s/ Lionel M. Sauvage
Lionel M. Sauvage and Capital
Guardian Trust Company's Portfolio
Counselors Team
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FREMONT INTERNATIONAL GROWTH FUND
GEOGRAPHIC DIVERSIFICATION
AS OF 10/31/00
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United States 13.6%
Latin America 1.8%
Europe 47.8%
Canada 3.9%
Pacific Rim 9.8%
Japan 23.1%
ANNUAL RETURNS
3/1/94-10/31/94* +2.30%
11/01/94-10/31/95 +0.13%
11/01/95-10/31/96 +7.07%
11/01/96-10/31/97 -0.01%
11/01/97-10/31/98 +0.80%
11/01/98-10/31/99 +38.70%
11/01/99-10/31/00 -2.54%
TOP TEN HOLDINGS
Vodafone Group PLC ............................. 3.4%
Nokia Corp., ADR ............................... 1.8%
NEC Corp. ...................................... 1.8%
Lloyds TSB Group PLC ........................... 1.8%
Sony Corp. ..................................... 1.7%
NTT Mobile Communication
Network, Inc. ................................ 1.7%
Telefonos de Mexico SA (Class L), ADR .......... 1.5%
Tokyo Electron Ltd. ............................ 1.5%
Aegon NV ....................................... 1.4%
Taiwan Semiconductor
Manufacturing Co. Ltd., ADR .................... 1.4%
TOTAL ..................................... 18.0%
GROWTH OF $10,000(1)
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10/31/00
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Fremont International Growth Fund ($14,492)
MSCI EAFE Index ($15,696)
AVERAGE ANNUAL RETURNS FOR PERIODS ENDED 10/31/00
1 Year 3 Years 5 Years Since Inception (3/1/94)
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-2.54% 10.86% 7.84% 6.21%
*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.
FREMONT MUTUAL FUNDS 5
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FREMONT EMERGING MARKETS FUND
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Portfolio Manager
Henry Thornton
BDT Investment Management Limited
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Henry Thornton
FUND PROFILE
The Fremont Emerging Markets Fund employs a bottom-up stock picking approach in
building a diversified portfolio of emerging markets companies. The Fund focuses
on the stocks of companies with rapid, sustainable earnings growth trading at
reasonable market valuations. Portfolio risk is reduced by country and sector
diversification. Liquidity is also carefully monitored.
Portfolio Manager Henry Thornton, is a Principal of London-based BDT Invest. He
has devoted his entire professional career to emerging markets investing.
TO OUR SHAREHOLDERS
For the twelve month period ended October 31, 2000, the Fremont Emerging Markets
Fund returned 2.85% compared to the Morgan Stanley Capital International
Emerging Markets Free (MSCI-EMF) Index's 8.81% loss. For the six month period
ended on the same date, the Fund declined 17.26% versus MSCI-EMF's 19.91% loss.
We are pleased to have recorded a modest gain and materially outperformed our
benchmark index in what has been a challenging year for emerging markets
investing. Technology/media/telecommunications (TMT) stocks propelled first half
returns. Timely profit taking in TMT stocks near the end of the first half
helped us hold on to some of our gains. However, still significant exposure to
TMT stocks penalized second half returns.
Emerging market TMT stocks could not distance themselves from NASDAQ stocks and,
once again, the U.S. market sneezed and the emerging markets caught a cold.
There are, however, very real differences in emerging market TMT stocks and
their U.S. counterparts. In technology hardware (i.e. semiconductors and
telecommunications equipment components), the leading Asians are generally low
cost producers with excellent cost cutting track records. This should help them
to preserve margins and maintain profitability. In addition, higher cost
manufacturers in the U.S. and Europe may continue to outsource production thus
helping top line growth. In telecommunications services, most notably wireless
communications, competition is less severe and growth in the industry higher
even with lower penetration rates. This should translate into stronger secular
growth. Finally, Asian TMT stocks are much more reasonably valued. We can't
predict when emerging market investors will re-focus on the favorable
fundamentals in the TMT sector but we suspect at some point in the year ahead
this group will regain momentum.
Higher oil prices have a materially negative impact on imported oil dependent
emerging market economies. Expensive oil hurts trade balances, slows economic
growth, and has potentially serious inflationary consequences. We believe oil
will fall from current levels to around $25 per barrel in the year ahead. This
is good news for emerging markets and particularly those in Asia. More good news
could come in the form of less restrictive U.S. Federal Reserve monetary policy
and a weaker dollar. Although many emerging markets have free floating exchange
rates, most of their central banks continue to view the health of their currency
in relation to the dollar. Should the Fed ease in the year ahead, emerging
markets would likely follow suit which would help these economies regain
momentum.
Currently, the Fund has 46.2% of assets in Asia/Pacific Rim, 19.8% in
Europe/Middle East/Africa, 29.8% in Latin America, and 4.2% in cash. In Latin
America, we favor Brazil, where the economy is in good shape and important
structural economic reforms are being put in place. We are largely avoiding
Argentina, which we believe will likely remain in recession and Mexico, whose
economy will decelerate along with the U.S. and be further impacted by any
decline in the oil price.
From the September 1998 bottom through its April 2000 high, the MSCI-EMF Index
gained approximately 125%. Since then, it has retreated about 33% and investors
are once again questioning whether emerging market investing will continue to be
productive. With attractive earnings growth rates, rising returns on equity
(ROE), and competitive valuations you can make a compelling case for emerging
market equities. Even in a less vibrant global economy, earnings should grow 15%
or so in the year ahead, modestly higher than the projected earnings growth rate
in the U.S. From the 1998 trough, ROEs across emerging markets have risen from
6% to 9%.
6 FREMONT MUTUAL FUNDS
<PAGE>
We think it will break 10% in the year ahead. Emerging markets stocks are
currently trading at about 2x book value compared to 5x and 3.5x book for U.S.
and European stocks, respectively. Rising ROEs should translate into an
expanding price/book value ratio. Finally, the concept of corporate governance
continues grow in emerging markets. Accounting standards are rising,
transparency is improving and companies are focusing more on profitability.
Attractive fundamentals, low valuations, and positive changes in business
cultures are all factors in favor of emerging markets investing.
Sincerely,
/s/ Henry Thornton
Henry Thornton
Portfolio Manager
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FREMONT EMERGING MARKETS FUND
GEOGRAPHIC DIVERSIFICATION
AS OF 10/31/00
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Short-Term Securites (U.S.) 4.2%
Emerging Markets Latin America 29.8%
Emerging Markets Europe 14.2%
Emerging Markets Africa 4.4%
Emerging Markets Asia 6.1%
Pacific Rim 40.1%
Emerging Markets Middle East 1.2%
ANNUAL RETURNS
6/24/96-10/31/96* -3.12%
11/01/96-10/31/97 +12.55%
11/01/97-10/31/98 -37.59%
11/01/98-10/31/99 +36.16%
11/01/99-10/31/00 +2.85%
TOP TEN HOLDINGS
China Resources Enterprise Ltd. ................ 6.6%
Kookmin Bank ................................... 4.5%
Hindalco Industries Ltd., GDR .................. 3.3%
Companhia de Bebidas das Americas, ADR ......... 3.2%
Telefonos de Mexico SA (Class L), ADR .......... 3.2%
Petroleo Brasileiro SA, ADR .................... 3.1%
Sappi Ltd. ..................................... 2.8%
Videsh Sanchar Nigam Ltd. ...................... 2.8%
Pliva D.D., GDR ................................ 2.5%
Korea Telecom Corp. SP, ADR .................... 2.5%
TOTAL ..................................... 34.5%
GROWTH OF $10,000(1)
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10/31/00
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Fremont Emerging Markets Fund ($9,519)
MSCI Emerging Markets Free Index ($7,814)
AVERAGE ANNUAL RETURNS FOR PERIODS ENDED 10/31/00
1 Year 3 Years Since Inception (6/24/96)
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2.85% -8.58% -1.10%
*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.
FREMONT MUTUAL FUNDS 7
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FREMONT U.S. MICRO-CAP FUND
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Portfolio Manager
Robert E. Kern, Jr.
Kern Capital Management LLC
[PHOTO OMITTED]
Robert E. Kern, Jr.
FUND PROFILE
The U.S. micro-cap stock market is a breeding ground for
entrepreneurially-managed companies with exceptional growth prospects. With
minimal Wall Street research coverage and low institutional ownership, micro-cap
stocks represent the least efficient sector of the domestic equities market.
This inefficiency creates attractive investment opportunities for the
research-driven stock pickers managing the Fremont U.S. Micro-Cap Fund.
Since the investment potential of micro-cap stocks is largely determined by the
business prospects for individual companies rather than macro-economic trends,
the Fund's focus is on bottom-up stock selection. Fund management analyzes
financial statements, the company's competitive position, and meets with key
corporate decision makers to discuss strategies for future growth.
Robert E. Kern, Jr. is nationally recognized as a pioneer and leading
practitioner of micro-cap research and portfolio management.
TO OUR SHAREHOLDERS
For the six and twelve month periods ended October 31, 2000, the Fremont U.S.
Micro-Cap Fund declined 0.77% and gained 46.07% compared to the Russell 2000's
1.10% loss and 17.40% gain. We are pleased to have delivered positive returns in
what has been a very challenging year for micro-cap stock investors.
The Fund has a history of excelling in rising markets and holding up
sufficiently well during declines to produce attractive returns through the
micro-cap market cycle. This has translated into excellent long term performance
versus our benchmark index. This performance pattern repeated itself in fiscal
2000. The Fund achieved exceptional absolute and relative returns in the first
four months of this reporting period. Over the balance of the fiscal year, our
returns did not compare favorably to the benchmark index. However, by fiscal
year end, we posted positive results and maintained our performance lead.
In first half fiscal 2000, our technology investments performed impressively and
our healthcare holdings contributed to returns. Our consumer and services
investments lagged. Although we began significantly reducing our tech sector
weighting at the beginning of second half fiscal 2000, we still suffered the
consequences of significant exposure to the weakest sector of the market. Our
healthcare investments continued to perform relatively well in the second half,
but our consumer and services holdings continued to stumble.
We have been through challenging markets before, most recently in the first
three quarters of calendar 1998, when micro-cap stocks declined sharply. Our
response to this difficult market was to concentrate the portfolio in stocks we
had the highest degree of confidence in and believed would perform best when the
market turned around. This worked to our advantage in the fourth quarter of 1998
and through all of 1999, a period in which the Fund posted impressive returns.
We are currently laying the groundwork for good gains when the micro-cap stock
market recovers from its present malaise. Let me give two examples of the kind
of stocks we believe will help propel performance in the years ahead.
Two of the Fund's larger holdings, Spectra-Physics Lasers (SPLI) and Zygo
Corporation (ZIGO), are established companies with similar growth drivers. Both
companies are well positioned to participate in the explosive long-term growth
forecasted for fiber optic-based telecommunications. SPLI has leveraged its
strong position in high-power lasers and optical coatings to develop next
generation products for the telecommunications industry. ZIGO has combined its
knowledge of precision optics, metrology and motion control with a recent
acquisition's high-volume, precision-manufacturing skills to potentially
revolutionize the way optical components are manufactured. While neither firm's
share price has been spared in this latest tech fallout, both companies'
businesses remain on track and are expected to rebound with a turn in the stock
market.
The reduction in our technology exposure from 37% of assets at the peak to 24%
of assets at the close of this reporting period, was the only major shift in
sector weighting during second half fiscal 2000. Historically, the Fund's
technology weighting has ranged from a high of around 40% to a low of
approximately 20%. The fact that we are now in the low end of that range
reflects our concern that we may continue to see valuations in the tech sector
decline to come more in line with current fundamentals. Healthcare now
represents 13% of assets, consumer stocks 17%, services 13% and special
situations 9%. The remaining 24% is in cash reserves. We believe this "dry
powder" will allow us to take maximum advantage of opportunities evolving in the
micro-cap market. Once the dust settles, we will probably
8 FREMONT MUTUAL FUNDS
<PAGE>
use much of this cash to rebuild our technology sector commitments.
In closing, volatility in the micro-cap market is a fact of life. We can live
with that. We will make adjustments in response to changing fundamentals and
valuations in the different sectors represented in the portfolio. We will use
cash reserves as a defensive weapon during difficult markets and an offensive
weapon in more fertile investment environments. However our primary focus will
remain on identifying the most promising businesses in the four most innovative
sectors of the economy. This basic strategy has served us well for a long time
and we believe will continue to generate superior returns in the future.
Sincerely,
/s/ Robert E Kern, Jr.
Robert E Kern, Jr.
Portfolio Manager
--------------------------------------------------------------------------------
FREMONT U.S. MICRO-CAP FUND
SECTOR DIVERSIFICATION
AS OF 10/31/00
--------------------------------------------------------------------------------
[GRAPHIC OMITTED]
Short-Term Securites (23.8%)
Health Care (13.2%)
Business Equipment & Services (12.9%)
Technology (Components) (10.3%)
Technology (Equipment) (8.4%)
Retail (7.7%)
Consumer Services (6.7%)
Technology (Software) (5.5%)
Capital Goods (3.4%)
Consumer Non-Durables (2.3%)
Other (5.8%)
ANNUAL RETURNS
6/30/94-10/31/94* +3.60%
11/01/94-10/31/95 +38.68%
11/01/95-10/31/96 +41.46%
11/01/96-10/31/97 +28.80%
11/01/97-10/31/98 -23.45%
11/01/98-10/31/99 +110.46%
11/01/99-10/31/00 +46.07%
TOP TEN HOLDINGS
Boston Communications Group, Inc. .............. 3.0%
Anaren Microwave, Inc. ......................... 2.5%
TeleTech Holdings, Inc. ........................ 2.5%
Endocare, Inc. ................................. 2.4%
Zygo Corp. ..................................... 2.2%
ArthroCare Corp. ............................... 2.2%
Gene Logic, Inc. ............................... 2.2%
Eclipsys Corp. ................................. 1.9%
Microsemi Corp. ................................ 1.9%
NeoPharm, Inc. ................................. 1.8%
TOTAL ..................................... 22.6%
GROWTH OF $10,000(1)
[GRAPHIC OMITTED]
10/31/00
--------
Fremont U.S. Micro-Cap Fund ($61,630)
Russell 2000 Index ($22,595)
AVERAGE ANNUAL RETURNS FOR PERIODS ENDED 10/31/00
1 Year 3 Years 5 Years Since Inception (6/30/94)
----------------------------------------------------------------------
46.07% 33.01% 33.78% 33.23%
*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. 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.
FREMONT MUTUAL FUNDS 9
<PAGE>
--------------------------------------------------------------------------------
FREMONT U.S. SMALL CAP FUND
--------------------------------------------------------------------------------
Portfolio Manager
David G. Kern, Jr.
Kern Capital Management LLC
[PHOTO OMITTED]
David G. Kern, CFA
FUND PROFILE
U.S. small cap stocks offer tremendous opportunity to professional investors
dedicated to hands-on fundamental research. Through rigorous fundamental
analysis, including visits with corporate managements, their suppliers,
customers and competitors, Fund management strives to identify small, relatively
unknown companies with the potential to become larger and more successful over
time.
Research is concentrated in industries with the greatest level of innovation
such as technology, healthcare, consumer, and services. The research process
focuses on answering three basic questions: how attractive is the business; how
strong is management; and how much is the company worth?
Portfolio Manager David G. Kern, CFA, co-founded Kern Capital Management LLC, a
firm dedicated exclusively to small company stock research and portfolio
management.
TO OUR SHAREHOLDERS
For the twelve month period ended October 31, 2000, the Fremont U.S. Small Cap
Fund returned 27.75% versus the Russell 2000 Index's 17.40% gain. For the six
months ended on the same date, the Fund declined 7.58% versus a 1.10% loss for
the Russell 2000 bench-mark. The Fremont U.S. Small Cap Fund celebrated its
three year anniversary during September 2000 and we are pleased that the Fund's
three year average annual return of 29.79% significantly outperformed the
Russell 2000's average annual three year return of 5.94%.
The small cap stock market went through three phases in fiscal 2000. From
November through February, excellent fundamentals combined with tremendous
enthusiasm for technology/internet stocks produced excellent returns but left
many stocks priced for perfection. In March, investors started to become more
concerned about valuations, which significantly impacted the stock performance
of consumer oriented internet companies. In the third phase, concern about
valuations changed to concern about fundamentals as the third calendar quarter
earnings were generally disappointing, especially in the technology sector.
The Fund's performance followed this pattern. At the close of first half fiscal
2000, the Fund had gained 38.23% versus the Russell 2000's 18.72% advance. In
the second half, the investment environment became more challenging and the Fund
modestly under-performed its Russell 2000 benchmark by 6.47%. Technology
investments, which had been our biggest winners in the first half, were hit the
hardest during the volatile second and third calendar quarters. Fundamental
concerns, however, were not confined to the technology sector as our consumer
and services investments were also negatively impacted. During the second half
of the fiscal year, the Fund's healthcare weighting was significantly increased
and the healthcare sector provided the Fund with the best performance for both
the second half as well as for the whole year.
Looking ahead, we continue to believe the investment environment for small cap
stocks will remain challenging. Our current strategy is to concentrate the
portfolio in the stocks we have the greatest confidence in and which we believe
will attract the most favorable investor attention when the investment
environment improves. This strategy worked successfully for us, when small caps
emerged from a slump in 1998 and the Fund went on to post strong absolute and
relative returns over the next eighteen months. We have been laying the
portfolio groundwork for when the small cap stock market turns around.
Our primary sector allocation shifts in the second half were to reduce our
technology exposure (now 26.3% of assets) and increase our commitments to
healthcare stocks (currently 20.6%). The services sector now comprises 16.1%,
consumer stocks 11.2%, and special situations 3.4% of portfolio assets. The
remaining 22.4% is in cash reserves, which we will be putting to work carefully
and prudently as opportunities evolve.
In the healthcare sector, we believe the genomic revolution offers selective
investment opportunities. The development of drugs custom tailored to
effectively treat patients with different body chemistries will be one of the
keys to lowering healthcare costs in the years ahead. Right now, it is difficult
to determine which of the biotechnology companies will be successful and which
will fail. Consequently we have made investments in companies such as
Invitrogen, which makes research kits for gene cloning, expression and analysis,
and Gene Logic, which provides genomic information critical to understanding the
function of genes. We expect both companies to prosper as genomic research
accelerates.
10 FREMONT MUTUAL FUNDS
<PAGE>
In the services sector, workforce productivity is a high priority. Our third
largest holding, SmartForce, is in the e-learning business. Instead of taking
people out of workplace and putting them in front of a lecturer in an
auditorium, SmartForce's corporate customers can train employees over the
Internet at their work stations. SmartForce has signed up some marquee clients,
including Litton Industries, E*TRADE, and Dell. Going forward, we believe
revenues can grow by 40-50% annually, with SmartForce becoming solidly
profitable in the years ahead.
In closing, we have faced challenging small cap markets in the past and
successfully repositioned the portfolio to produce excellent returns when the
market recovered. Through the market cycles, we believe investing in the most
fundamentally promising, innovative small companies provides significant
opportunity to add value over the long-term.
Sincerely,
/s/ David G. Kern
David G. Kern
Portfolio Manager
--------------------------------------------------------------------------------
FREMONT U.S. SMALL CAP FUND
SECTOR DIVERSIFICATION
AS OF 10/31/00
--------------------------------------------------------------------------------
[GRAPHIC OMITTED]
Short-Term Securities (22.4%)
Health Care (20.6%)
Technology (Software) (16.8%)
Business Equipment & Services (16.1%)
Retail (7.5%)
Technology (Equipment) (6.6%)
Consumer Services (2.9%)
Technology (Components) (2.9%)
Other (4.2%)
ANNUAL RETURNS
9/24/97-10/31/97* -4.06%
11/01/97-10/31/98 -7.29%
11/01/98-10/31/99 +84.60%
11/01/99-10/31/00 +27.75%
TOP TEN HOLDINGS
TeleTech Holdings, Inc. ........................ 4.9%
Advance Paradigm, Inc. ......................... 4.8%
SmartForce Public Ltd. Co. ..................... 4.7%
Invitrogen Corp. ............................... 3.8%
Critical Path, Inc. ............................ 3.4%
Oxford Health Plans, Inc. ...................... 3.3%
International Speedway Corp.
(Class A) .................................... 3.1%
Cerner Corp. ................................... 3.1%
Anaren Microwave, Inc. ......................... 2.9%
Venator Group, Inc. ............................ 2.8%
TOTAL ..................................... 36.8%
GROWTH OF $10,000(1)
[GRAPHIC OMITTED]
10/31/00
--------
Fremont U.S. Small Cap Fund ($20,978)
Russell 2000 Index ($11,484)
AVERAGE ANNUAL RETURNS FOR PERIODS ENDED 10/31/00
1 Year 3 Years Since Inception (9/24/97)
-------------------------------------------------------
27.75% 29.79% 26.98%
*Unannualized. 1 Assumes initial investment of $10,000 on inception date,
September 24, 1997. Performance data illustrated is historical. Past performance
is not predictive of future performance. Share price and return will vary so
that a gain or loss may be realized when shares are sold. All performance
figures assume reinvestment of dividends. Management fees and other expenses are
included in the Fund's performance; however, fees and expenses are not
incorporated in the Russell 2000 Index. 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. 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.
FREMONT MUTUAL FUNDS 11
<PAGE>
--------------------------------------------------------------------------------
FREMONT GROWTH FUND
--------------------------------------------------------------------------------
Portfolio Co-Managers
Fremont Investment Advisors, Inc.
[PHOTOS OMITTED]
W. Kent Copa, CFA, Debra McNeill CFA, and
Peter Landini
FUND PROFILE
The Fremont Growth Fund invests principally in large capitalization U.S. stocks.
The goal is to outperform the Standard & Poor's 500 and the average of its large
cap value 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
45 years of professional investment experience.
TO OUR SHAREHOLDERS
For the six and twelve month periods ended October 31, 2000, the Fremont Growth
Fund returned 0.07% and 7.18% compared to the Standard & Poor's 500 Index's
1.03% loss and 6.10% gain. We are pleased the Fund delivered solid absolute
returns and favorable results versus the S&P 500 and our peer group benchmark
during fiscal 2000.
The portfolio's leaders and laggards reversed roles midway through fiscal 2000.
Our technology investments powered first half gains and penalized second half
performance. Our financial services holdings restrained first half returns, but
were among our best performers in the second half. Our utilities holdings were
strong throughout fiscal 2000.
Looking ahead, we believe the outlook for the equities market is relatively
good. Investors are adjusting to the realities of a slower growth economy. Now
that third quarter earnings are in, investors have more realistic expectations.
We believe they are also beginning to realize that slower non-inflationary
growth with strong productivity, high employment, and continuing technological
innovation provides a very favorable fundamental backdrop for stocks.
As we begin fiscal 2001, our largest over-weighting is in the multi-industry
category, anchored by General Electric and Honeywell, which we will discuss
later in this report. Our second largest over-weighting is in financial
services, a sector we expect to benefit from stable or possibly declining
interest rates in the year ahead. We remain over-weighted in utilities stocks,
most notably power generating companies, where profits should continue to rise
as a result of constrained capacity and strong demand. We are under-weighted in
the capital goods sector--cyclical companies whose earnings are most vulnerable
in a slowing economy--and consumer services companies whose profits are likely
to be pinched by higher labor costs. Despite the recent poor performance of
technology stocks, we will continue to participate in this fast growth, yet now
much more reasonably priced, sector.
As is our custom, we will comment on several current portfolio companies.
General Electric and Honeywell are planning to merge. Approximately 90% of their
businesses are complimentary, creating lots of opportunities for
cross-marketing, expanding product lines, cutting costs at the corporate level,
and improving returns on Honeywell's under-managed assets. GE's corporate
strategy is to own businesses that are either number one or a strong number two
in their respective markets and either fix or fold businesses that don't meet
this standard. With GE's Jack Welch staying on another year to over-see the
merger, we think some of Honeywell's less productive businesses will be sold or
closed down, further enhancing profit margins and earnings for the combined
company. Analysts are projecting mid-teens annual earnings growth rates for GE
over the next five years and earnings growth estimates are being revised upward.
Trading at 43 times next year's earnings estimates, GE is hardly dirt cheap.
But, the best never comes cheap and we think GE is still a good long term value.
Washington Mutual is the nation's largest thrift institution. It has a strong
retail banking franchise, made stronger by its recent purchase of Bank United
Corp. in Texas. With its acquisition of PNC Financial Services' residential
mortgage business, Washington National is now America's third largest home
mortgage originator and fourth largest mortgage servicer. Economies of scale in
the mortgage business should help Washington Mutual expand margins and enhance
earnings growth. Analysts are projecting a 13% average annual earnings growth
rate over the next five years. Yet, Washington Mutual stock is selling at just
12.3 times next year's earnings estimates. A price/earnings ratio lower
12 FREMONT MUTUAL FUNDS
<PAGE>
than long term earnings growth rate is a rarity in today's market.
In closing, our goal is to identify stocks with better earnings growth potential
and lower valuations. At the close of this reporting period, the Fremont Growth
Fund has a projected five year average annualized earnings growth rate of 20.4%
versus the S&P 500's 18.9% and a price/trailing 12 month earnings ratio of 24.7
compared to the S&P 500's 28.0. We believe this formula--faster growth at a
lower price--will continue to serve us well in the years ahead.
Sincerely,
/s/ Ken Copa /s/ Debra McNeill
/s/ Peter Landini
Ken Copa, Debra McNeill &
Peter Landini,
Portfolio Co-Managers
--------------------------------------------------------------------------------
FREMONT GROWTH FUND
SECTOR DIVERSIFICATION
AS OF 10/31/00
--------------------------------------------------------------------------------
[GRAPHIC OMITTED]
Technology (Components) (11.9%)
Consumer Non-Durables (5.8%)
Capital Goods (5.5%)
Short-Term Securities (4.3%)
Technology (Software) (6.4%)
Financial Services (Other) (11.2%)
Health Care (11.1%)
Utilities (10.5%)
Energy (6.4%)
Technology (Equipment) (8.5%)
Retail (5.8%)
Business Equipment & Services (3.2%)
Raw Materials (1.5%)
Other (2.8%)
Financial Services (Banks) (5.1%)
ANNUAL RETURNS
8/14/92-10/31/92* +2.00%
11/01/92-10/31/93 +12.80%
11/01/93-10/31/94 +1.72%
11/01/94-10/31/95 +28.12%
11/01/95-10/31/96 +22.06%
11/01/96-10/31/97 +29.26%
11/01/97-10/31/98 +7.30%
11/01/98-10/31/99 +24.24%
11/01/99-10/31/00 +7.18%
TOP TEN HOLDINGS
Exxon Mobil Corp. .............................. 4.6%
General Electric Co. ........................... 3.6%
Cisco Systems, Inc. ............................ 3.0%
Microsoft Corp. ................................ 2.9%
Citigroup, Inc. ................................ 2.6%
Intel Corp. .................................... 2.4%
Pfizer, Inc. ................................... 2.1%
Bank of America Corp. .......................... 2.0%
Merck & Co. .................................... 1.9%
Oracle Systems Corp. ........................... 1.7%
TOTAL ..................................... 26.8%
GROWTH OF $10,000(1)
[GRAPHIC OMITTED]
10/31/00
--------
S&P 500 Index ($40,323)
Fremont Growth Fund ($33,803)
AVERAGE ANNUAL RETURNS FOR PERIODS ENDED 10/31/00
1 Year 5 Years Since Inception (8/14/92)
-------------------------------------------------------
7.18% 17.65% 15.98%
*Unannualized. 1 Assumes initial investment of $10,000 on inception date, August
14, 1992. Performance data illustrated is historical. Past performance is not
predictive of future performance. Share price and return will vary so that a
gain or loss may be realized when shares are sold. All performance figures
assume reinvestment of dividends. Management fees and other expenses are
included in the Fund's performance; however, fees and expenses are not
incorporated in the S&P 500 Index.
FREMONT MUTUAL FUNDS 13
<PAGE>
--------------------------------------------------------------------------------
FREMONT REAL ESTATE SECURITIES FUND
--------------------------------------------------------------------------------
Portfolio Co-Managers
Kensington Investment Group
[PHOTOS OMITTED]
John Kramer and Paul Gray
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 and twelve month periods ended October 31, 2000, the Fremont Real
Estate Fund returned 3.38% and 10.59% compared to the National Association of
Real Estate Investment Trusts (NAREIT) Composite Index's 6.77% and 17.32% gains.
We are pleased the Fund delivered solid returns in fiscal 2000, but disappointed
we trailed our benchmark index. Large cap REITs represented by the NAREIT Index
outperformed smaller cap REITs this year. Our large cap holdings performed well
and our smaller cap holdings lagged. However, we continue to see compelling
values in smaller real estate companies, which are trading at deeper discounts
to underlying property values and providing materially higher dividend yields.
We are not alone. Large REITs are acquiring smaller bargain priced real estate
companies and we are seeing more REIT liquidations which create value. There are
several factors impacting the relative performance of equities in different
capitalization classes, but in our opinion, value is the most influential. We
believe it is simply a matter of time before the values presented by smaller
capitalization REITs are realized.
When we launched the Fremont Real Estate Securities Fund on December 31, 1997,
we thought our timing was good. The commercial real estate market was strong.
The errors of the past--excessive leverage and overbuilding during boom
times--were not being repeated. Earnings and dividends were growing nicely. We
did not anticipate the two-year bear market in real estate securities, caused to
a large extent by investor indifference. Why own securities capable of
delivering low to mid-teens annual total returns, when other market sectors,
particularly technology stocks, were providing much more generous rewards? In
fiscal 2000, investors found an answer--that there is a place in almost
everyone's investment program for fundamentally attractive securities with high
yields and good capital appreciation potential.
Looking ahead, the commercial property markets remain quite healthy. Occupancy
rates are high, over 90% for most property types. Although demand will probably
moderate as the economy slows, new construction is also being held in check. We
expect top line rental revenue to stabilize at a 3% to 4% annual growth rate
over the next few years. Enhanced by lower priced leases being rolled over at
today's higher lease rates, REITs should produce 6% to 8% bottom line earnings
growth. When you add the 7%+ dividend yield to the equation, you get a 13% to
15% return on equity. If P/Es expand modestly from currently low levels, returns
could be higher.
In addition to healthy property markets, current valuations present a compelling
case for real estate securities. While valuations have moved up somewhat this
year, REITs are still priced at historically attractive levels as evidenced by
two measures of value: stock prices relative to property values, and earnings
multiples. REIT's are currently priced at approximately 90% of underlying
property value--about 15% below their historical average of 105%. This is at the
low end of their historical range and well below the 25% premium to property
value REITs enjoyed at their 1997 peak. REITs are also currently trading at
slightly over 9 times projected earnings (funds from operations or FFO), versus
nearly 14 times earnings (FFO) at their 1997 peak.
Brandywine Realty, a large cap office REIT with extensive properties in the
Northeast, provides a good example of the values in the Fund portfolio.
Brandywine stock is trading at 6.8 times 2001 earnings estimates. Earnings are
projected to grow at about 8% annually over the next several years. If
Brandywine stock were to appreciate in line with its projected earnings growth
rate
14 FREMONT MUTUAL FUNDS
<PAGE>
and the dividend were to remain stable, we would realize a total return in
excess of 15% in the coming year. If the P/E were to expand to 8, (matching our
forecasted earnings growth rate), we could realize a total return in excess of
25%. We think risk is limited, in part due to a history of share repurchases
when the stock has dropped below its current price. There are no sure things in
the real estate securities market. But, based on these attractive fundamentals,
we view Brandywine as an excellent investment opportunity.
In closing, the great private real estate fortunes of the past were built with
an eye toward value and patience. This is precisely how we hope to build wealth
for shareholders.
Sincerely,
/s/ John Kramer /s/ Paul Gray
John Kramer and Paul Gray
Portfolio Co-Managers
--------------------------------------------------------------------------------
FREMONT REAL ESTATE SECURITIES FUND
SECTOR DIVERSIFICATION
AS OF 10/31/00
--------------------------------------------------------------------------------
[GRAPHIC OMITTED]
REITs (Office) (40.5%)
REITs (Office/Industrial) (14.0%)
REITs (Apartments) (13.1%)
REITs (Community Centers) (10.9%)
REITs (Diversified) (6.7%)
REITs (Hotels) (6.2%)
REITs (Regional Malls) (6.2%)
Other (2.4%)
ANNUAL RETURNS
12/31/97-10/31/98* -18.78%
11/01/98-10/31/99 -0.07%
11/01/99-10/31/00 +10.59%
TOP TEN HOLDINGS
Banyan Strategic Realty Trust .................. 10.9%
American Industrial Properties REIT ............ 6.7%
Equity Residential Properties Trust ............ 6.3%
Wellsford Real Properties, Inc. ................ 5.4%
Koger Equity, Inc. ............................. 5.3%
Mack-Cali Realty Corp. ......................... 4.4%
Malan Realty Investors, Inc. ................... 4.4%
Brandywine Realty Trust ........................ 4.3%
Equity Office Properties Trust ................. 3.6%
Corporate Office Properties Trust, Inc. ........ 3.5%
TOTAL ..................................... 54.8%
GROWTH OF $10,000(1)
[GRAPHIC OMITTED]
10/31/00
--------
Fremont Real Estate Securities Fund ($8,976)
NAREIT ALL Index ($8,695)
AVERAGE ANNUAL RETURNS FOR PERIODS ENDED 10/31/00
1 Year Since Inception (12/31/97)
-----------------------------------------
10.59% -3.74%
*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 (TM)
(NAREIT) ALL Index.
FREMONT MUTUAL FUNDS 15
<PAGE>
--------------------------------------------------------------------------------
FREMONT BOND FUND
--------------------------------------------------------------------------------
Portfolio Manager
Bill Gross
Founder & Managing Director
Pacific Investment Management
Company (PIMCO)
[PHOTO OMITTED]
Bill Gross
FUND PROFILE
The Fremont Bond Fund invests in high quality corporate, mortgage-backed,
hedged-international, and government bonds. The Fund's goal is to consistently
provide attractive risk-adjusted returns relative to the broad fixed-income
market.
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 30 years of professional fixed income
investment experience. In addition to serving as the sub-advisor to the Fremont
Bond Fund, PIMCO manages over $200 billion in fixed income investments for
institutional clients.
TO OUR SHAREHOLDERS,
For the one-year period ending October 31, 2000, the Fremont Bond Fund returned
8.33% versus 7.30% for the Lehman Brothers Aggregate Index.
During this period, the U.S. fixed income markets have experienced two
significant changes--the interest rate hikes by the Federal Reserve and the U.S.
Treasury buy-back program. In an effort to slow an overheating economy, the
Federal Reserve raised interest rates 125 basis points (1.25%) to 6.5%. This
caused rates on the short end of the curve to rise above longer-term rates. This
inversion of interest rates was compounded by a $30 billion Treasury buy back
program, which targeted longer maturity issues. At the end of October, the yield
on 3-month T-bills was 6.38% while 30-year Treasury bonds offered a yield of
5.88%.
A general flight to quality, induced by credit concerns, resulted in Treasuries
outperforming other core sectors of the fixed income market. In the mortgage
sector, higher interest rate volatility and a general concern about sustained
Federal backing of government agency credits resulted in widening yield spreads.
The investment grade and high yield corporate sectors faired worse than
mortgages as concerns about rising corporate debt levels and record high default
rates in a period of economic expansion coupled with recent evidence of an
impending economic slowdown resulted in a widening of spreads. The emerging
markets sector outperformed Treasuries as strong global growth, rising commodity
prices and improved political stability supported upper-tier credits such as
Mexico and Poland. Currency-hedged European and Japanese bonds underperformed
Treasuries despite lower levels of economic growth than the United States.
PORTFOLIO RECAP
The excellent performance of the Fremont Bond Fund this past year was primarily
due to our sector strategy decisions. Our emphasis on mortgage backed securities
added to returns as the sectors' attractive yields accrued to the portfolio in a
low prepayment environment. Throughout the year, we have been cautious on
corporate credit and have been underweighted in corporate bonds. This strategy
was positive for performance as the sector struggled amid supply pressures and
credit concerns. Also, our modest allocation to inflation protected securities
proved positive as longer-term real yields declined. While our duration strategy
of maintaining near-index interest rate exposure was a modest positive, this was
offset by our positioning along the yield curve.
OUTLOOK AND STRATEGY
In 2001, we expect global growth to moderate in response to recent monetary
tightening by central banks in the U.S., Europe and Japan. Signs of a slowdown
are already apparent in the U.S. as a result of the recent rate increase by the
Federal Reserve. Higher levels of investment in information technology will
continue to buttress the U.S. economy, though this spending may prove vulnerable
to slower growth. As for inflation, U.S. labor markets will remain tight,
producing demands for higher nominal wages. Productivity growth will likely lag
wage increases this late in the economic cycle, so we expect upward pressures on
unit labor costs. Inflation will also creep higher as increased energy prices
filter through economies worldwide.
Sector and quality will have more impact on portfolio performance than interest
rate strategies in the environment forecast above. High levels of corporate debt
and erosion of credit quality amid slower global growth signal caution toward
longer-maturity corporate and emerging market bonds. Emphasis on top-quality
credits with short maturities is one way to avoid mistakes, though this strategy
may sacrifice yield. Mortgages,
16 FREMONT MUTUAL FUNDS
<PAGE>
which offer relatively high yields with little or no credit risk, are another
alternative. Still, mortgages are not risk-free because they will be vulnerable
to adverse price performance if interest rate volatility picks up.
Sincerely,
/s/ Bill Gross
Bill Gross
Portfolio Manager
--------------------------------------------------------------------------------
FREMONT BOND FUND
PORTFOLIO CREDIT QUALITY
AS OF 10/31/00
--------------------------------------------------------------------------------
[GRAPHIC OMITTED]
AAA (76.0%)
AA (1.3%)
A (12.0%)
BBB (5.4%)
BB (1.3%)
B (4.0%)
ANNUAL RETURNS
4/30/93-10/31/93* +5.15%
11/01/93-10/31/94 -4.42%
11/01/94-10/31/95 +16.49%
11/01/95-10/31/96 +8.18%
11/01/96-10/31/97 +9.54%
11/01/97-10/31/98 +10.31%
11/01/98-10/31/99 +0.01%
11/01/99-10/31/00 +8.33%
TOP TEN HOLDINGS
90-day Euro Dollar Futures, 295 Contracts,
Exp. Dec. 2000 ............................... 9.2%
GNMA I, 7.000%, 11/20/30 ....................... 7.8%
RFMSI, 7.000%, 11/25/27 ........................ 7.0%
FNMA CMO, 7.200%, 05/25/23 ..................... 6.5%
FHLMC CMO, 7.000%, 12/13/30 .................... 6.4%
FNMA CMO, 8.000%, 01/25/22 ..................... 6.0%
GNMA I, 6.500%, 11/20/30 ....................... 3.1%
10-yr U.S. Treasury Bond Futures,
111 Contracts, Exp. Dec. 2000 .................. 2.7%
General Motors Acceptance Corp., 5.750%,
11/10/03 ..................................... 0.9%
U. S. Treasury Strip, 0.000%, 11/15/21 ......... 0.3%
TOTAL ..................................... 49.9%
GROWTH OF $10,000(1)
[GRAPHIC OMITTED]
10/31/00
--------
Fremont Bond Fund ($16,579)
Lehman Bros. Aggregate Bond Index ($15,897)
AVERAGE ANNUAL RETURNS FOR PERIODS ENDED 10/31/00
1 Year 5 Years Since Inception (4/30/93)
-------------------------------------------------------
8.33% 7.20% 6.97%
*Unannualized. 1 Assumes initial investment of $10,000 on inception date, April
30, 1993. Performance data illustrated is historical. Past performance is not
predictive of future performance. Share price and return will vary so that a
gain or loss may be realized when shares are sold. All performance figures
assume reinvestment of dividends. Management fees and other expenses are
included in the Fund's performance; however, fees and expenses are not
incorporated in the Lehman Bros. Aggregate Bond Index.
FREMONT MUTUAL FUNDS 17
<PAGE>
--------------------------------------------------------------------------------
FREMONT MONEY MARKET FUND
--------------------------------------------------------------------------------
Portfolio Manager
Norman Gee
Fremont Investment Advisors, Inc.
[PHOTO OMITTED]
Norman Gee
FUND PROFILE
Fremont Money Market Fund invests primarily in high-quality short-term debt
securities (commercial paper) issued by U.S. corporations and U.S. subsidiaries
of foreign corporations. The Fund will also take small positions in other
investment-grade short-term debt instruments such as Yankee CDs (dollar
denominated certificates of deposit in foreign banks).
Portfolio Manager Norman Gee strives to add value through price-sensitive
trading and by identifying undervalued high quality money market securities. He
will also make conservative adjustments to the portfolio's average maturity
relative to the market in attempting to enhance total portfolio yield.
TO OUR SHAREHOLDERS
For the six and twelve month periods ended October 31, 2000, the Fremont Money
Market Fund returned 3.13% and 5.99% compared to the Money Fund Report First
Tier Taxable Average's 2.87% and 5.48% gains. We are pleased to report the
Fremont Money Market Fund once again finished in the top quartile of comparable
funds in the Money Fund Report money market fund universe.
The Federal Reserve has been dormant since the last of six consecutive 25 basis
point (0.25%) Fed Funds rate hikes in May. Many market observers now believe the
Fed's next move will be to lower rates. We suspect this is wishful thinking.
Those forecasting Fed easing cite a decline in consumer confidence readings,
reduced housing starts, and weakness in the manufacturing sector as clear cut
evidence the economy is slowing rapidly enough to motivate the Fed to lower
rates. We would point out that personal income is still growing, as is consumer
spending, and that the manufacturing sector is much less significant in what has
become primarily a service economy. We also note that new housing sales remain
near record levels. These are not signs of a rapidly decelerating economy.
It is important to understand that slower growth may not eliminate inflationary
pressures in the economy. We are being told that if we ignore the energy
component of the Consumer Price Index, inflation is no problem at all. I'm not
so sure that higher energy prices are a temporary phenomenon that should be so
conveniently swept under the rug when assessing inflation. We've got to put gas
in our cars and pay our home heating bills. Both have become more expensive.
We also believe wage pressure is building. After an extended period of peace on
the labor front, the unions are becoming more aggressive. The Los Angeles
Transit strike was just settled and the Teamsters' Union is now striking against
Safeway Supermarket distributors. We may see more labor unrest in the year
ahead. Labor supply is still tight. There are "help wanted" signs in the windows
of businesses across the country. This may foreshadow more wage inflation than
is currently anticipated. In addition, technology driven productivity gains,
which have helped temper wage inflation, may slow as capital investment in
technology continues to decline in the year ahead.
My conclusion is that the Fed will be reluctant to lower interest rates any time
soon. The stock market could be the wild card in this scenario. If we were to
see the Dow Jones Industrial Average or Standard & Poor's 500 Index drop into
bear market territory, the Fed may choose to improve investor and consumer
morale with a rate reduction. We doubt this will happen. Stocks strengthened in
the last week of October and we believe the major market indices will stay in a
trading range that will not alarm the Fed.
Consequently, we have kept the portfolio's weighted average maturity at around
57 days, well below the 70 day average at the start of fiscal 2000. Rather than
"barbelling" the portfolio (heavy weighting on the long and short side of the
maturity spectrum), we have spread maturities relatively evenly out to
approximately six months. The short-term yield curve is so flat, securities with
maturities exceeding six months offer no meaningful yield advantage.
Normally this time of year, we would be taking advantage of the Christmas bonus
season in the commercial paper market--issuers offering more attractive yields
on paper maturing after the first few weeks of the new year. However, this year
we are not seeing the normal yield premiums on commercial paper maturing in
February and March. The grinch appears to have stolen our traditional Christmas
gift to shareholders. Commercial paper
18 FREMONT MUTUAL FUNDS
<PAGE>
issuance is also relatively low, challenging us to identify value oriented
special situations.
In closing, we look forward to a relatively dull money market environment, but
one in which income and preservation of capital may be more greatly appreciated
by investors losing sleep over an extremely volatile stock market.
Sincerely,
/s/ Norman Gee
Norman Gee
Portfolio Manager
--------------------------------------------------------------------------------
FREMONT MONEY MARKET FUND
GEOGRAPHIC DIVERSIFICATION
AS OF 10/31/00
--------------------------------------------------------------------------------
[GRAPHIC OMITTED]
United States (60.1%)
United Kingdom (11.2%)
Switzerland (7.7%)
Germany (6.3%)
Belgium (4.9%)
France (3.5%)
Luxembourg (3.5%)
Japan (2.1%)
Sweden (0.7%)
ANNUAL RETURNS
11/18/88-10/31/89* +8.52%
11/01/89-10/31/90 +7.99%
11/01/90-10/31/91 +6.51%
11/01/91-10/31/92 +3.73%
11/01/92-10/31/93 +2.66%
11/01/93-10/31/94 +3.49%
11/01/94-10/31/95 +5.84%
11/01/95-10/31/96 +5.34%
11/01/96-10/31/97 +5.39%
11/01/97-10/31/98 +5.45%
11/01/98-10/31/99 +4.89%
11/01/99-10/31/00 +5.99%
TOP TEN HOLDINGS
Federal Farm Credit Banks Funding Corp., AN .... 1.4%
France Telecom, CP ............................. 1.4%
General Motors Corp, CP ........................ 1.4%
American Express Credit, CP .................... 1.4%
Gannett Co., Inc., CP .......................... 1.4%
American Honda Finance Corp., CP ............... 1.4%
Rio Tinto America, Inc., CP .................... 1.4%
Honeywell, Inc., CP ............................ 1.4%
Queen's Health Systems, CP ..................... 1.4%
British Telecom, CP ............................ 1.4%
TOTAL ..................................... 14.0%
GROWTH OF $10,000(1)
[GRAPHIC OMITTED]
10/31/00
--------
Fremont Money Market Fund ($18,948)
90-Day U.S. T-Bills ($18,934)
Money Fund Report First Tier
Taxable Prime Average ($18,103)
AVERAGE ANNUAL RETURNS FOR PERIODS ENDED 10/31/00
1 Year 5 Years 10 Years Since Inception (11/18/88)
-----------------------------------------------------------------------
5.99% 5.41% 4.92% 5.49%
*Unannualized. 1 Assumes initial investment of $10,000 on inception date,
November 18, 1988. Performance data illustrated is historical. Past performance
is not predictive of future performance. All performance figures assume
reinvestment of dividends. Management fees and other expenses are included in
the Fund's performance; however, fees and expenses are not incorporated in the
U.S. 90-Day T-Bill Index. An investment in Fremont Money Market Fund is neither
insured nor guaranteed by the FDIC or any other government agency. Although the
Fund seeks to preserve the net asset value at $1.00 per share, it is possible to
lose money by investing in the Fund.
FREMONT MUTUAL FUNDS 19
<PAGE>
--------------------------------------------------------------------------------
FREMONT CALIFORNIA INTERMEDIATE TAX-FREE FUND
--------------------------------------------------------------------------------
Portfolio Co-Managers
Arno A. Rayner & William C. Williams
Rayner Associates, Inc.
[PHOTO OMITTED]
Arno A. Rayner
FUND PROFILE
The Fremont California Intermediate Tax-Free Fund seeks double tax-free income
for California residents through investing in high credit quality California
municipal securities.
Portfolio Co-Managers Arno Rayner and William Williams believe active duration
management, opportunistic sector allocation, and individual security selection
can enhance municipal bond portfolio returns. Credit quality is always first
priority. The Fund holds only investment grade rated securities and selected
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
For the six and twelve month periods ended October 31, 2000, the Fremont
California Intermediate Tax Free Fund returned 4.66% and 6.78% compared to the
Lehman Brothers Municipal 5-Year State General Obligation (GO) Index's 4.56% and
5.76% gains.
California municipal securities delivered solid returns in fiscal 2000.
Declining market interest rates and reduced supply accompanied by strong demand
propelled bond prices. Despite this year's excellent performance, municipal bond
yields still approximate 97% of Treasury securities yields, providing a
substantial after-tax return advantage for California residents in high federal
and state income tax brackets.
The California economy remains robust. In fact, with a $1.2 trillion Gross State
Product, California is now the sixth largest economy in the world and about to
pass the United Kingdom for fifth place. According to Forbes Magazine, 168 of
the 500 largest companies in America are headquartered in California. Forty
percent of the nation's venture capital assets are invested in the State. In the
agricultural sector, California is now growing 50% of all the fruits,
vegetables, and nuts in the U.S. and its dairies are producing more milk than
Wisconsin. At 5.1%, unemployment is modestly higher than the national average,
but judging by all the "help wanted" signs in shop and restaurant windows, every
one who is employable and/or willing to work has a job.
Although the State sales tax was just reduced by 0.25%, saving residents about
$1 billion, there is still no political pressure to lower State income taxes.
California's $3 billion budget surplus remains largely intact, but we suspect
the politicians will come to some agreement to reduce it through infrastructure
and education spending. We don't believe this will have a materially negative
impact on the strong credit quality of California General Obligation Bonds.
California is experiencing some growing pains. Traffic around urban centers is
horrible and the deregulation of the utilities industry does not appear to be
achieving the twin goals of better service and lower energy prices. Housing
prices are skyrocketing. We are also seeing some smaller suburban communities
mounting anti-growth campaigns. For example, the Silicon Valley community of
Salinas is insisting Cisco build a 50 mile rail line to import workers for its
planned 20,000 employee plant in Coyote Valley. These are startling developments
in a state that just nine years ago was mired in a recession.
These growing pains aren't likely to have a meaningful near-term impact on a
very favorable environment for California municipal securities. The only problem
we are currently facing is supply. New issuance remains low and demand is
strong. We are still able to find sufficient value oriented opportunities, but
would like to see a little more supply come to market. Voters recently approved
a state-wide referendum lowering the percentage of votes needed to pass school
bond issues from two thirds to 55%, and California will be issuing more veterans
home loan bonds next year. This should bolster the supply of high quality
municipal securities in the market.
At the close of this reporting period, the portfolio had an Average Coupon Rate
of 5.35%. Weighted Average Maturity was 9.6 years compared to 8.9 years at the
end of first half fiscal 2000, reflecting the fact that we have had to go
farther out on the yield curve to meet our 5% or higher yield target. The Fund
has relatively conservative duration (a standard measure of interest rate risk)
of 6.9 years. The portfolio is rated AA by Moody's and Standard & Poors and
84.9% of our holdings have a credit quality rating of AA or higher.
In closing, we are pleased to have rewarded shareholders in fiscal year 2000 and
believe the very positive
20 FREMONT MUTUAL FUNDS
<PAGE>
outlook for California municipal securities will help us deliver good returns in
the year ahead.
Sincerely,
/s/ Arno A. Rayner /s/ Williams C. Williams
Arno A. Rayner & Williams C. Williams
Portfolio Co-Managers
--------------------------------------------------------------------------------
FREMONT CALIFORNIA INTERMEDIATE
TAX-FREE FUND
PORTFOLIO CREDIT QUALITY
AS OF 10/31/00
--------------------------------------------------------------------------------
[GRAPHIC OMITTED]
A (12.6%)
AA (24.1%)
AAA (60.8%)
Not Rated (2.5%)
ANNUAL RETURNS
11/01/90-10/31/91* +9.36%
11/01/91-10/31/92 +7.37%
11/01/92-10/31/93 +11.37%
11/01/93-10/31/94 -3.94%
11/01/94-10/31/95 +12.77%
11/01/95-10/31/96 +4.63%
11/01/96-10/31/97 +6.75%
11/01/97-10/31/98 +7.16%
11/01/98-10/31/99 -0.68%
11/01/99-10/31/00 +6.78%
TOP TEN HOLDINGS
Sacramento Municipal Utlities District ......... 3.2%
Yucaipa School Facilities Finance Authority .... 2.5%
City of Los Angeles, Wastewater System Revenue . 2.5%
East Bay Municipal Utility District ............ 2.5%
City of Industry, Urban Development Agency ..... 2.0%
Orange County Transportation Authority ......... 1.7%
California State Public Works Board ............ 1.7%
Santa Monica-Malibu Unified School District .... 1.7%
Los Angeles County Public Works
Finance Authority ............................ 1.7%
University of California Housing System
Revenue ...................................... 1.7%
TOTAL ..................................... 21.2%
GROWTH OF $10,000(1)
[GRAPHIC OMITTED]
10/31/00
--------
Fremont California Intermediate Tax-Free Fund ($17,979)
Lehman Muni 5-Year State G.O. Index ($17,812)
AVERAGE ANNUAL RETURNS FOR PERIODS ENDED 10/31/00
1 Year 5 Years Since Inception (11/16/90)
--------------------------------------------------------
6.78% 4.88% 6.07%
*Unannualized. 1 Assumes initial investment of $10,000 on inception date,
November 16, 1990. Performance data illustrated is historical. Past performance
is not predictive of future performance. Share price and return will vary so
that a gain or loss may be realized when shares are sold. All performance
figures assume reinvestment of dividends. Management fees and other expenses are
included in the Fund's performance; however, fees and expenses are not
incorporated in the Lehman Bros. 5-Year State G.O. Index.
FREMONT MUTUAL FUNDS 21
<PAGE>
--------------------------------------------------------------------------------
REPORT OF INDEPENDENT ACCOUNTANTS
--------------------------------------------------------------------------------
To the Board of Directors and Shareholders of Fremont Mutual Funds, Inc.:
In our opinion, the accompanying statements of assets and liabilities, including
the schedules of investments in securities and net assets, and the related
statements of operations, cash flows and changes in net assets and the financial
highlights present fairly, in all material respects, the financial position of
each of the funds constituting Fremont Mutual Funds, Inc., (hereafter referred
to as the "Funds"), at October 31, 2000, and the results of each of their
operations for the year then ended, the cash flows of the Bond Fund for the year
then ended, the changes in each of their net assets for each of the two years in
the period then ended, and the financial highlights for each of the periods
presented, in conformity with accounting principles generally accepted in the
United States of America. These financial statements and financial highlights
(hereafter referred to as "financial statements") are the responsibility of the
Funds' management; our responsibility is to express an opinion on these
financial statements based on our audits. We conducted our audits of these
financial statements in accordance with auditing standards generally accepted in
the United States of America, which require that we plan and perform the audit
to obtain reasonable assurance about whether the financial statements are free
of material misstatement. An audit includes examining, on a test basis, evidence
supporting the amounts and disclosures in the financial statements, assessing
the accounting principles used and significant estimates made by management, and
evaluating the overall financial statement presentation. We believe that our
audits, which included confirmation of securities at October 31, 2000 by
correspondence with the custodian and brokers, provide a reasonable basis for
our opinion.
PricewaterhouseCoopers LLP
San Francisco, California
December 19, 2000
22 FREMONT MUTUAL FUNDS
<PAGE>
FREMONT GOLBAL FUND
October 31, 2000
SCHEDULE OF INVESTMENTS IN SECURITIES AND NET ASSETS
Country Value
Shares Security Description Code (Note 1)
--------------------------------------------------------------------------------
STOCKS 47.8%
BUSINESS EQUIPMENT & SERVICES 4.0%
50 Flughafen Wien AG AT $ 1,825
* 29,500 Cable & Wireless Optus Ltd. AU 62,866
* 9,000 Tycom Ltd. BM 301,500
30,000 Nortel Networks Corp. CA 1,362,292
1,369 Adecco SA CH 946,712
3,000 SAP AG DE 482,628
2,100 SAP AG (Vorzug) DE 412,717
125 Danisco AS DK 4,947
600 Vestas Wind Systems AS DK 32,503
600 Autopistas Concesinaria
Espanola SA ES 4,564
200 Prosegur, CIA De Seguridad SA ES 1,970
150 Metra Oyj (Class B) FI 2,420
940 Sonera Group Oyj FI 20,716
21,000 Alcatel FR 1,281,830
26,900 Bouygues SA FR 1,370,205
3,000 Canal Plus FR 434,238
20,000 Compagnie Generale
D'Industrielle et de
Participations FR 838,763
2,500 Legrand SA FR 403,251
18,501 Pacific Century CyberWorks Ltd. HK 14,234
6,000 Fujitsu Ltd. JP 106,872
1,000 Kinden Corp. JP 6,560
103,000 Kyowa Exeo Corp. JP 1,073,978
6,000 Marubeni Corp. JP 14,019
2,000 Mitsubishi Logistics Corp. JP 17,042
4,000 Sumitomo Corp. JP 35,184
6,000 USHIO, Inc. JP 104,453
21,000 Equant NV NL 703,313
6,081 Getronics NV NL 68,403
14 Hands ASA NO 44
225 Merkantildata ASA NO 1,061
205 Jeronimo Martins SGPS SA PT 1,977
800 WM-Data AB SE 2,784
101,900 Invensys PLC UK 242,788
52,200 Marconi PLC UK 658,775
70,000 Misys PLC UK 727,041
46,100 Rentokil Initial PLC UK 106,996
90,000 Serco Group PLC UK 825,754
* 22,000 ADC Telecommunications, Inc. US 470,250
* 8,700 AGENCY.COM, Inc. US 91,350
* 9,432 Agilent Technologies, Inc. US 436,819
* 28,000 America Online, Inc. US 1,412,040
* 3,200 Ariba, Inc. US 404,400
8,000 Automatic Data Processing, Inc. US 522,500
* 34,700 Boston Communications
Group, Inc. US 819,787
* 6,400 Bright Horizons Family
Solutions, Inc. US 160,000
* 5,700 Brocade Communications
Systems, Inc. US 1,296,037
* 17,500 Ceridian Corp. US 437,500
1,000 Cintas Corp. US 46,375
* 9,400 Clear Channel
Communications, Inc. US 564,587
BUSINESS EQUIPMENT & SERVICES (Cont.)
* 6,000 Computer Sciences Corp. US $ 378,000
* 7,000 Comverse Technology, Inc. US 782,250
* 8,600 Corporate Executive Board Co. US 396,675
* 22,500 CoStar Group, Inc. US 703,125
* 8,000 CSG Systems International, Inc. US 371,500
* 38,900 Datalink Corp. US 466,800
* 28,300 Dendrite International, Inc. US 615,525
* 2,000 DoubleClick, Inc. US 32,500
7,500 Electronic Data Systems Corp. US 352,031
* 5,100 Exodus Communications, Inc. US 171,169
* 12,500 Fiserv, Inc. US 655,469
* 1,000 i2 Technologies, Inc. US 170,000
* 13,200 Infocrossing, Inc. US 165,825
* 20,700 International
Speedway Corp. (Class A) US 664,987
2,000 Interpublic Group of
Companies, Inc. US 85,875
* 27,100 Liberty Satellite &
Technology, Inc. US 135,500
* 17,100 Media 100, Inc. US 168,862
5,775 Paychex, Inc. US 327,370
8,200 PE Corp.-PE Biosystems Group US 959,400
* 2,000 Redback Networks, Inc. US 212,875
* 3,000 Robert Half International, Inc. US 91,500
* 20,100 Sanchez Computer
Associates, Inc. US 322,856
* 5,400 Sapient Corp. US 192,037
* 4,700 Shuffle Master, Inc. US 105,456
* 33,500 Spectrum Control, Inc. US 414,562
* 20,100 Speedway Motorsports, Inc. US 350,494
12,250 Symbol Technologies, Inc. US 556,609
* 66,600 Teletech Holdings, Inc. US 1,848,150
* 1,000 TMP Worldwide, Inc. US 69,609
* 8,000 Waters Corp. US 580,500
* 8,000 Yahoo!, Inc. US 469,000
------------
32,155,381
------------
CAPITAL GOODS 2.8%
30 VA Technologie AG AT 1,215
120 Wienberger Baust NPV AT 2,259
50 Bekaert NV BE 2,017
25,000 Embraer - Empresa Brasileira
de Aeronautica SA, ADR BR 723,437
46,000 Bombardier, Inc. (Class B) CA 723,993
7,147 ABB Ltd. CH 635,196
641 Holderbank Financiere
Glarus AG (Class B) CH 673,648
17,700 Siemens AG DE 2,253,962
130 FLS Industries AS (Class B) DK 2,031
21 NKT Holding AS DK 4,970
345 Grupo Dragados SA ES 3,354
264 Zardoya Otis SA ES 2,006
264 Zardoya-Otis SA (Rights) ES 193
60 Kone Corp. (Class B) FI 3,515
200 Metso Oyj FI 1,528
350 Rautaruukki Oyj FI 1,129
17,000 Ciments Francais FR 790,882
692,000 Johnson Electric Holdings Ltd. HK 1,375,340
41,150 CRH PLC IE 629,865
The accompanying notes are an integral part of these financial statements.
FREMONT MUTUAL FUNDS 23
<PAGE>
FREMONT GOLBAL FUND
October 31, 2000
SCHEDULE OF INVESTMENTS IN SECURITIES AND NET ASSETS
Country Value
Shares Security Description Code (Note 1)
--------------------------------------------------------------------------------
CAPITAL GOODS (Cont.)
845 CRH PLC IE $ 12,826
143,353 DCC PLC IE 1,235,250
374 Italcementi SPA IT 2,972
2,000 Amada Co. Ltd. JP 15,576
1,000 Daikin Industries Ltd. JP 19,333
2,000 Daiwa House Industry Co. Ltd. JP 12,553
1,000 EBARA Corp. JP 15,531
4,000 Kajima Corp. JP 10,409
4,000 Kawasaki Heavy Industries Ltd. JP 4,141
4,000 Komatsu Ltd. JP 17,739
1,000 Koyo Sieko Co. Ltd. JP 7,073
8,000 Kubota Corp. JP 26,901
18,000 Mabuchi Motors Co. Ltd. JP 1,923,035
2,000 Minebea Co. Ltd. JP 19,974
9,000 Mitsubishi Electric Corp. JP 64,651
247,000 Mitsubishi Heavy Industries JP 959,575
19,000 Murata Manufacturing Co. Ltd. JP 2,273,594
1,000 NGK Insulators, Ltd. JP 13,240
1,000 NGK Spark Plug Co. JP 15,384
1,000 Nishimatsu Construction Co. Ltd. JP 3,161
2,000 Obayashi Corp. JP 8,283
2,000 Shimizu Corp. JP 5,461
300 SMC Corp. JP 42,441
3,000 Sumitomo Electric Industries JP 55,388
5,000 Taiheiyo Cement Corp. JP 7,788
30,000 THK Co. Ltd. JP 742,166
* 1,557 Cemex SA de CV (Warrants) MX 3,114
26,081 Cemex SA de CV, ADR MX 550,961
* 93,584 Renong Berhad MY 39,650
155,000 Renong Berhad Warrants MY 408
235 Kvaerner ASA NO 2,314
180 Tomra Systems ASA NO 7,226
* 130 Atlas Copco AB SE 2,684
265 Atlas Copco AB (Class A) SE 5,618
555 Sandvic AB SE 12,238
135 SKF AB SE 2,005
200 SKF AB (A Shares) SE 2,730
4,000 Sembcorp Industries Ltd. SG 3,852
* 25,900 Aaon, Inc. US 547,137
16,100 Boeing Co. US 1,091,781
75,000 General Electric Co. US 4,110,937
* 10,600 IMPCO Technologies, Inc. US 208,687
* 9,100 Oshkosh Truck Corp. US 374,237
46,000 Worthington Industries, Inc. US 439,875
------------
22,750,439
------------
CONSUMER DURABLES 2.1%
10 SA D'Ieteren NV BE 2,165
400 Magna International, Inc. CA 17,954
6,500 Bayerische Motoren
Werke (BMW) AG DE 217,416
2,000 DaimlerChrysler AG DE 93,130
* 7,100 Epcos AG DE 541,274
* 8,000 Epcos AG, ADR DE 601,500
40 Bang & Olufsen
Holding AS (Class B) DK 1,952
5,000 Michelin (Class B) FR 144,746
800 Peugeot SA FR 147,378
20,000 Renault SA FR 994,969
CONSUMER DURABLES (Cont.)
360 Sagem SA FR $ 66,014
800 Valeo SA FR 34,841
* 390,000 PT Astra International TBK ID 89,631
625 Bulgari SPA IT 7,359
798 Fiat SPA IT 18,562
13,221 Fiat SPA (Preferred) IT 197,317
170 Fiat SPA (RNC) IT 2,227
2,000 Casio Computer Co. Ltd. JP 20,158
2,000 Citizen Watch Co. Ltd. JP 19,626
3,000 Dainippon Screen Mfg. Co. Ltd. JP 16,328
3,000 Denso Corp. JP 68,444
2,000 Fuji Photo Film JP 74,217
3,000 Honda Motor Co. Ltd. JP 103,628
700 Kyocera Corp. JP 91,076
7,000 Matsushita Electric Industrial
Company Ltd. JP 203,317
* 50,000 Mitsubishi Motors JP 160,345
2,400 Nintendo Co. Ltd. JP 396,921
85,000 Nissan Motor Co. Ltd. JP 583,333
1,000 Olympus Optical Co. Ltd. JP 13,817
1,000 Pioneer Electronic Corp. JP 30,969
10,800 Rohm Co. Ltd. JP 2,722,265
8,000 Sanyo Electric Co. Ltd. JP 60,839
600 Sega Enterprises Ltd. JP 4,261
4,000 Sharp Corp. JP 50,944
20,000 Shinko Electric Industry Co. Ltd. JP 729,338
41,000 Sony Corp. JP 3,275,793
10,000 Toshiba Corp. JP 71,468
1,000 Tostem Corp. JP 14,568
1,000 Toyo Seikan Kaisha Ltd. JP 16,951
12,000 Toyota Motor Corp. JP 479,384
1,000 Yamaha Corp. JP 8,613
3,000 Yokogawa Electric Corp. JP 23,529
* 13,000 Hyundai Motor Co. Ltd., GDR KR 81,250
29,605 Koninklijke (Royal) Philips
Electronics NV NL 1,163,917
600 Fisher & Paykel Industries, Inc. NZ 1,720
795 Electrolux AB (Series B) SE 10,017
715 Securitas AB SE 15,229
270 Volvo AB (Class A) SE 4,050
594 Volvo AB (Class B) SE 9,148
1,000 Cycle & Carriage Ltd. SG 1,823
40,428 Dixons Group PLC UK 120,222
64,200 GKN PLC UK 741,303
8,000 Federal-Mogul Corp. US 26,000
27,563 Ford Motor Co. US 720,083
9,800 General Motors Corp. US 608,825
13,000 Harley-Davidson, Inc. US 626,437
* 14,300 Jore Corp. US 84,012
* 9,000 Palm, Inc. US 482,062
* 2,000 SCI Systems, Inc. US 86,000
------------
17,200,665
------------
CONSUMER NON-DURABLES 2.3%
45 Austria Tabak AG AT 2,063
160 Compagnie Financiere
Richemont AG CH 445,075
883 Nestle SA (Registered Shares) CH 1,829,912
The accompanying notes are an integral part of these financial statements.
24 FREMONT MUTUAL FUNDS
<PAGE>
FREMONT GOLBAL FUND
October 31, 2000
SCHEDULE OF INVESTMENTS IN SECURITIES AND NET ASSETS
Country Value
Shares Security Description Code (Note 1)
--------------------------------------------------------------------------------
CONSUMER NON-DURABLES (Cont.)
75 Carlsberg AS (Class A) DK $ 3,250
60 Carlsberg AS (Class B) DK 2,511
390 Altadis SA ES 5,844
135 Azucarera Ebro Agricolas SA ES 1,645
400 Raisio Group PLC FI 604
2,800 Christian Dior SA FR 142,386
2,000 Groupe Danone FR 279,814
1,500 LVMH FR 109,515
19,500 Societe BIC SA FR 676,252
46,666 Hellenic Bottling Co. SA GR 639,053
48,000 Li & Fung Ltd. HK 89,244
1,500,000 Ng Fung Hong Ltd. HK 663,564
* 1,125,000 Indofood Sukses Makmur TBK ID 93,199
86,000 PT Hanjaya Mandala
Sampoerna TBK ID 101,122
710 Greencore Group PLC IE 1,658
7,388 Kerry Group PLC IE 92,262
3,875 Benetton Group SPA IT 7,040
400 Marzotto SPA IT 3,885
3,120 Parmalat Finanziaria SPA IT 4,503
2,000 Ajinomoto Co. JP 22,357
2,000 Asahi Breweries Ltd. JP 19,754
34,000 Kao Corp. JP 1,018,692
1,000 Katokichi Co. Ltd. JP 28,862
1,000 KIKKOMAN Corp. JP 7,880
4,000 Kirin Brewery Co. Ltd. JP 41,708
2,000 Kuraray Co. Ltd. JP 18,783
2,000 Meija Seika Kaisha Ltd. JP 11,636
2,000 Mitsubishi Rayon Co. Ltd. JP 7,128
1,000 Nippon Meat Packers, Inc. JP 12,681
1,000 Onward Kashiyama Co. Ltd. JP 7,422
2,000 Shiseido Co. Ltd. JP 25,838
3,000 Snow Brand Milk
Products Co. Ltd. JP 10,885
1,000 Takara Shuzo Co. Ltd. JP 16,850
4,000 Teijin Ltd. JP 18,105
4,000 Toray Industries, Inc. JP 15,576
400 Uni-Charm Corp. JP 17,116
13,000 Fomento Economico
Mexicano SA de CV, ADR MX 496,437
80,000 British American
Tobacco (Malaysia) Berhad MY 731,579
3,000 Heineken Holding NV (Class A) NL 106,968
30,800 Heineken NV NL 1,673,450
2,500 VNU NV NL 117,792
371 Orkla ASA (Series A) NO 6,689
875 Swedish Match AB SE 3,001
2,000 Fraser & Neave Ltd. SG 6,951
6,400 Cadbury Schweppes PLC UK 39,572
29,000 Caradon PLC UK 79,507
25,000 Unilever PLC UK 169,358
18,000 Anheuser-Busch Cos., Inc. US 823,500
30,000 Coca-Cola Enterprises, Inc. US 551,250
6,000 Colgate Palmolive Co. US 352,560
21,000 ConAgra, Inc. US 448,875
* 1,900 Concord Camera Corp. US 58,781
* 22,200 Guess?, Inc. US 165,112
9,000 Heinz (H.J.) & Co. US 377,437
7,400 K-Swiss, Inc. US 203,500
CONSUMER NON-DURABLES (Cont.)
* 27,400 McNaughton Apparel Group, Inc. US $ 376,750
3,600 NIKE, Inc. (Class B) US 143,775
28,000 Pepsi Bottling Group, Inc. US 969,500
24,000 Pepsico, Inc. US 1,162,500
49,000 Philip Morris Cos., Inc. US 1,794,625
7,000 Procter & Gamble Co. US 500,062
1,000 Sysco Corp. US 52,187
* 6,500 Universal Electronics, Inc. US 119,437
------------
18,026,829
------------
CONSUMER SERVICES 1.6%
3,800 News Corp. Ltd., ADR AU 163,400
12,000 Thomson Corp. CA 484,984
705 Public Groupe SA CH 413,795
240 Sol Melia SA ES 2,196
115 Tieto Corp. FI 2,211
11,957 Lagardere SCA FR 679,095
4,000 Societe Television Francaise 1 FR 218,350
* 6,000 Wanadoo FR 76,405
4,624,000 China Hong Kong Photo
Products Holdings Ltd. HK 391,322
1,000 Television Broadcasts Ltd. HK 5,475
21,948 Independent Newspapers PLC IE 68,010
250 Jurys Hotel Group PLC IE 1,900
2,570 Mediaset SPA IT 37,200
560 Mondadori (Arnoldo)
Editore SPA IT 6,561
300 CSK Corp. JP 4,096
3,000 Dai Nippon Printing Co. Ltd. JP 47,004
200 Namco Ltd. JP 5,168
22,000 Secom Co. JP 1,568,261
4,000 Toppan Printing Co. Ltd. JP 35,331
2,800 Trans Cosmos, Inc. JP 202,419
1,000 Societe Europeenne des Satellites LU 133,285
400,000 Resorts World Berhad MY 700,000
15,043 Elsevier NV NL 192,200
1 TNT Post Group NV NL 21
* 2,500 United Pan Europe
Communications NV NL 43,827
24,406 Wolters Kluwer NV NL 549,480
200 Schibsted ASA NO 3,035
1,000 Singapore Press Holdings Ltd. SG 14,301
29,100 British Sky
Broadcasting Group PLC UK 419,592
* 19,100 Granada Media PLC UK 110,826
50,700 Reuters Group PLC UK 986,980
* 15,400 ACTV, Inc. US 151,594
* 32,100 American Classic Voyages Co. US 443,381
* 7,000 Atmel Corp. US 104,562
39,500 Cash America International, Inc. US 204,906
* 30,000 Championship Auto
Racing Teams, Inc. US 746,250
* 5,000 CNET Networks, Inc. US 157,500
* 13,100 Crown Media
Holdings, Inc. (Class A) US 181,762
* 6,000 InfoSpace, Inc. US 120,750
* 12,800 Internet.com Corp. US 266,400
* 35,300 LoJack Corp. US 282,400
The accompanying notes are an integral part of these financial statements.
FREMONT MUTUAL FUNDS 25
<PAGE>
FREMONT GOLBAL FUND
October 31, 2000
SCHEDULE OF INVESTMENTS IN SECURITIES AND NET ASSETS
Country Value
Shares Security Description Code (Note 1)
--------------------------------------------------------------------------------
CONSUMER SERVICES (Cont.)
* 20,500 Nucentrix Broadband
Networks, Inc. US $ 463,812
* 2,000 RealNetworks, Inc. US 41,219
12,000 Starwood Hotels & Resorts
Worldwide, Inc. US 355,500
28,000 The Walt Disney Co. US 1,002,750
* 3,000 Univision Communications, Inc. US 114,750
* 12,000 Viacom, Inc. (Class B) US 682,500
------------
12,886,766
------------
ENERGY 1.9%
55 OMV AG AT 3,734
3,300 Suncor Energy, Inc. CA 64,517
45,000 TransCanada PipeLines Ltd. CA 428,797
16,035 Repsol SA ES 254,834
2,632 Total Fina Elf FR 374,715
2,632 Total Fina Elf SA-Strip VVPR FR 22
92,395 ENI SPA IT 500,439
6,000 Nippon Mitsubishi Oil Corp. JP 32,270
7,485 Norsk Hydro ASA NO 297,276
180 Petroleum Geo-Services NO 2,480
400 Smedvig AS NO 3,746
1,227 Fletcher Challenge Energy NZ 4,031
2,200 Lukoil-Holding, ADR RU 114,950
12,600 BG Group PLC UK 50,675
164,681 BP Amoco PLC UK 1,396,290
41,000 Shell Transport & Trading Co. UK 330,084
14,000 Apache Corp. US 774,375
10,000 Devon Energy Corp. US 504,000
10,500 Dynegy, Inc. (Class A) US 486,281
8,000 El Paso Energy Corp. US 501,500
9,000 EOG Resources, Inc. US 354,375
58,990 Exxon Mobil Corp. US 5,261,171
* 32,500 Newpark Resources, Inc. US 292,500
* 14,500 Noble Drilling Corp. US 602,656
* 13,100 Syntroleum Corp. US 255,450
* 5,000 Transocean Sedco Forex, Inc. US 265,000
47,000 USX-Marathon Group US 1,277,812
11,500 Weatherford International, Inc. US 419,750
------------
14,853,730
------------
FINANCIAL SERVICES (BANKS) 3.7%
245 Bank Austria AG AT 13,260
37,000 Australia & New Zealand
Banking Group Ltd. AU 274,987
32,700 Westpac Banking Corp. Ltd. AU 224,678
645 Kredietbank NV BE 26,722
17,000 Bank Of Montreal CA 787,606
6,700 Bank Of Nova Scotia CA 191,529
30,000 Royal Bank Of Canada CA 952,224
26,500 Toronto-Dominion Bank CA 730,548
5,500 UBS AG CH 761,913
15,000 Commerzbank AG DE 418,320
10,188 Deutsche Bank AG DE 825,989
3,000 Dresdner Bank AG DE 121,357
115 Den Danske Bank Group DK 16,656
1,460 Nordic Baltic Holding AB DK 10,989
67,158 Banco Bilbao Vizcaya SA ES 895,116
2,800 Banco Bilbao Vizcaya SA, ADR ES 38,150
FINANCIAL SERVICES (BANKS) (Cont.)
7,944 Banco Santander Central
Hispano SA ES $ 77,017
150,000 Dao Heng Bank Group Ltd. HK 757,809
4,200 Hang Seng Bank Ltd. HK 49,411
45,606 Allied Irish Banks PLC IE 464,800
1,938 Allied Irish Banks PLC IE 19,743
19,000 Allied Irish Banks PLC, ADR IE 389,500
60,000 Bank Of Ireland IE 455,886
15,000 Bank Of Ireland, ADR IE 450,000
8,672 Banca Intesa SPA IT 36,001
1,610 Banca Intesa SPA (RNC) IT 3,895
575 Banca Popolare di Milano IT 3,612
1,240 Mediobanca SPA IT 13,801
81,425 San Paolo-IMI SPA IT 1,320,302
160,570 Unicredito Italiano SPA IT 817,895
9,000 Asahi Bank Ltd. JP 35,459
14,000 Bank Of Tokyo-Mitsubushi Ltd. JP 167,913
5,000 Bank Of Yokohama Ltd. JP 24,510
3,000 Gunma Bank Ltd. JP 15,256
4,000 Joyo Bank Ltd. JP 13,671
4,000 Mitsubishi Trust & Banking Corp. JP 32,435
21 Mizuho Holding, Inc. JP 161,435
37,000 Sakura Bank Ltd. JP 269,516
106,000 Sanwa Bank Ltd. JP 942,093
3,000 Shizuoka Bank Ltd. JP 27,240
10,000 Sumitomo Bank Ltd. JP 121,404
2,000 The 77 Bank Ltd. JP 14,807
7,000 Tokai Bank Ltd. JP 37,521
1,000 Yamazaki Banking Co. Ltd. JP 7,495
20,000 Kookmin Bank KR 228,571
42,219 ABN Amro Holding NV NL 978,482
1,150 Christiana Bank NO 5,991
1,340 Den Norske Bank ASA NO 5,812
28,000 Bank of Philippine Islands PH 28,739
2,150 Banco Comercial Portugues SA PT 10,751
414 Banco Espirito Santo E
Comercial De Lisboa SA PT 6,291
1,130 BPI-SGPS SA PT 3,674
1,130 BPI-SGPS SA (Rights) PT 0
18,497 ForeningSparbanken AB
(Series A) SE 265,432
1,280 Skandinaviska Enskilda Banken SE 15,104
1,410 Svenska Handelsbanken AB
(Class A) SE 22,137
210 Svenska Handelsbanken AB
(Class B) SE 3,255
55,163 DBS Group Holdings Ltd. SG 650,603
3,150 Oversea-Chinese Banking
Corp. Ltd. (Local Shares) SG 20,101
81,056 United Overseas Bank Ltd
(Local Shares) SG 600,381
24,285 Thai Farmers Bank (Warrants) TH 774
148,000 Turkiye Is Bankasi (Isbank) TR 281,777
200,000 Turkiye Is Bankasi, GDR TR 380,780
99,500 Halifax Group PLC UK 783,016
12,000 HSBC Holdings PLC, ADR UK 865,200
213,426 Lloyds TSB Group PLC UK 2,174,910
* 45,000 Royal Bank Of Scotland
Group PLC UK 53,201
The accompanying notes are an integral part of these financial statements.
26 FREMONT MUTUAL FUNDS
<PAGE>
FREMONT GOLBAL FUND
October 31, 2000
SCHEDULE OF INVESTMENTS IN SECURITIES AND NET ASSETS
Country Value
Shares Security Description Code (Note 1)
--------------------------------------------------------------------------------
FINANCIAL SERVICES (BANKS) (Cont.)
53,858 Royal Bank Of Scotland
Group PLC (Value Shares) UK $ 1,210,178
45,600 Bank Of America Corp. US 2,191,650
17,800 Bank One Corp. US 649,700
19,000 Capital One Financial Corp. US 1,199,375
21,000 MBNA Corp. US 788,812
8,100 Mellon Bank Corp. US 390,825
7,000 PNC Bank Corp. US 468,125
10,500 TCF Financial Corp. US 424,594
26,000 Washington Mutual, Inc. US 1,144,000
8,300 Wells Fargo & Co. US 384,394
------------
29,257,106
------------
FINANCIAL SERVICES (OTHER) 3.5%
15 Generali Holding Vienna AG AT 2,197
78,762 Lend Lease Corp. Ltd. AU 927,754
1,560 Fortis (Class B) BE 47,809
868 Fortis AG-CVG BE 3,589
50 Groupe Bruxelles Lambert SA BE 11,461
12,000,000 Sanwa International Financial
Bermuda Trust BM 127,543
5,100 Clarica Life Insurance Co. CA 121,325
* 1,000 Fairfax Financial Holdings Ltd. CA 133,403
360 Swiss Re CH 710,006
3,000 Allianz AG DE 1,010,335
4,300 Muenchener Rueckversicherungs-
Gesellschaft AG DE 1,334,252
60 Muenchener Rueckversicherungs-
Gesellschaft AG (Warrants) DE 5,094
115 Corporacion Mapfre SA ES 2,026
260 Vallehermoso SA ES 1,472
45 Pohjola Group Insurance Corp. FI 1,635
40 Pohjola Insurance Group (Class A) FI 1,447
200 Sampo Insurance Company Ltd. (Class A) FI 8,150
7,600 Coface (Compagnie Francaise
d'Assurance pour le
Commerce Exterieur) FR 684,559
16,000 SCOR FR 736,209
30,000 Cheung Kong (Holdings) Ltd. HK 331,782
70,000 Henderson Land
Development Co. Ltd. HK 301,585
270,000 Kerry Properties Ltd. HK 309,855
5,000 Sun Hung Kai Properties Ltd. HK 41,353
10,285 Wharf Holdings HK 20,969
631 Irish Permanent PLC IE 6,326
7,845 Assicurazioni Generali SPA IT 258,075
1,572 RAS SPA IT 20,645
132 SAI SPA IT 2,191
600 Acom Co. Ltd. JP 48,543
1,700 Aiful Corp. JP 133,956
1,400 Credit Saison Co. Ltd. JP 29,632
9,000 Daiwa Securities Co. Ltd. JP 99,698
5,000 Mitsubishi Estate Co. Ltd. JP 53,143
14,000 Mitsui Fudosan Co. Ltd. JP 169,580
49,000 Mitsui Marine and Fire
Insurance Co. Ltd. JP 248,726
FINANCIAL SERVICES (OTHER) (Cont.)
3,000 Nikko Securities Co. Ltd. JP $ 25,893
46,000 Nomura Securities Co. Ltd. JP 975,719
300 Orix Corp. JP 31,473
1,600 SHOHKOH FUND & Co., Ltd JP 131,354
4,000 Sumitomo Marine & Fire
Insurance Co. Ltd. JP 24,409
7,200 Takefuji Corp. JP 712,479
5,000 Tokio Marine & Fire
Insurance Co. Ltd. JP 55,250
250,000 AMMB Holdings Berhad MY 280,263
18,763 Aegon NV NL 745,470
14,215 Aegon NV, ADR NL 573,931
3,009 ING Groep NV NL 206,709
9,093 ING Groep NV, ADR NL 629,122
590 Storebrand ASA NO 4,128
175 OM Gruppen AB SE 6,247
2,230 Skandia Forsakrings AB SE 37,798
300,000 Wing TAI Holdings SG 232,465
10,000 Land Securities PLC UK 102,920
27,400 Prudential Corp. PLC UK 369,443
19,000 Royal & Sun Alliance
Insurance Group PLC UK 135,120
35,500 ACE Ltd. US 1,393,375
17,000 Alliance Capital Management
Holding LP US 816,000
6,500 American General Corp. US 523,250
16,625 American International
Group, Inc. US 1,629,250
* 13,800 Associates First
Capital Corp. - Class A US 512,325
5,000 Cigna Corp. US 609,750
52,333 Citigroup, Inc. US 2,754,024
* 3,100 Concord EFS, Inc. US 128,069
19,000 Fannie Mae US 1,463,000
40,000 FleetBoston Financial Corp. US 1,520,000
11,000 GATX Corp. US 462,687
3,500 Hartford Financial
Services Group, Inc. US 260,531
7,400 Legg Mason, Inc. US 384,337
7,000 Lehman Brothers Holdings, Inc. US 451,500
7,800 Morgan Stanley
Dean Witter & Co. US 626,437
9,000 Providian Financial Corp. US 936,000
13,500 Stilwell Financial, Inc. US 604,969
------------
28,302,022
------------
HEALTH CARE 5.3%
315 UCB SA BE 11,232
* 4,100 QLT Phototherapeutics, Inc. CA 203,911
1,337 Novartis AG (Registered Shares) CH 2,028,429
12 Roche Holding AG (Genusss) CH 109,622
4,950 Schering AG DE 275,251
165 Novo Nordisk AS (Class B) DK 35,001
165 Fabrica Espanola de Productos
Quimicos y Farmaceuticos, SA ES 1,982
70 Instrumentarium Group (Class B) FI 1,622
10,400 Sanofi Synthelabo SA FR 547,403
* 17,000 Elan Corp PLC, ADR IE 882,937
The accompanying notes are an integral part of these financial statements.
FREMONT MUTUAL FUNDS 27
<PAGE>
FREMONT GOLBAL FUND
October 31, 2000
SCHEDULE OF INVESTMENTS IN SECURITIES AND NET ASSETS
Country Value
Shares Security Description Code (Note 1)
--------------------------------------------------------------------------------
HEALTH CARE (Cont.)
16,000 Chugai Pharmaceutical Co. Ltd. JP $ 271,504
1,000 Daiichi Pharmaceutical Co. Ltd. JP 28,404
1,000 Eisai Co. Ltd. JP 30,786
45,000 Sankyo Co. Ltd. JP 991,616
39,000 Shionogi & Co. Ltd. JP 761,132
1,000 Taisho Pharmaceutical Co. Ltd. JP 28,770
5,000 Takeda Chemical Industries JP 329,393
1,000 Yamanouchi Pharmaceutical
Co. Ltd. JP 45,263
* 46,500 Grupo Casa Saba
SA de CV, ADR MX 438,844
26,400 AstraZeneca Group PLC UK 1,240,402
43,298 AstraZeneca Group PLC UK 2,043,666
51,700 Glaxo Wellcome PLC UK 1,485,671
76,067 SmithKline Beecham PLC UK 983,154
16,000 Abbott Laboratories US 845,000
* 21,500 Advance Paradigm, Inc. US 1,050,812
2,000 Allergan, Inc. US 168,125
* 13,000 ALZA Corp. US 1,052,187
10,000 American Home Products Corp. US 635,000
* 18,650 Amgen, Inc. US 1,080,534
* 44,500 ArthroCare Corp. US 1,009,594
2,000 Becton Dickinson & Co. US 67,000
* 15,000 Biogen, Inc. US 902,812
26,200 Bristol-Myers Squibb Co. US 1,596,562
4,000 Cardinal Health, Inc. US 379,000
* 10,200 Cerner Corp. US 631,762
* 5,100 Chiron Corp. US 220,894
* 25,400 eBenX, Inc. US 303,212
* 20,800 Eclipsys Corp. US 513,500
* 36,800 Endocare, Inc. US 650,900
* 2,000 Forest Laboratories, Inc.
(Class A) US 265,000
* 26,500 Fusion Medical Technologies, Inc. US 218,625
* 48,000 Gene Logic, Inc. US 1,047,000
* 4,000 Human Genome Sciences, Inc. US 353,563
* 3,500 IDEC Pharmaceuticals Corp. US 686,438
* 12,500 Immunex Corp. US 532,031
4,000 IMS Health, Inc. US 94,500
* 26,100 InnerDyne, Inc. US 182,700
* 10,200 Invitrogen Corp. US 775,838
* 2,000 IVAX Corp. US 87,000
19,210 Johnson & Johnson US 1,769,721
10,000 Lilly (Eli) & Co. US 893,750
* 21,500 MedImmune, Inc. US 1,405,563
20,800 Medtronic, Inc. US 1,129,700
24,170 Merck & Co. US 2,173,789
* 4,000 Millennium Pharmaceuticals, Inc. US 290,250
* 10,500 NeoPharm, Inc. US 380,625
* 41,100 Oxford Health Plans, Inc. US 1,387,125
51,750 Pfizer, Inc. US 2,234,953
19,970 Pharmacia Corp. US 1,098,350
* 3,600 Quintiles Transnational Corp. US 50,175
13,000 Schering-Plough Corp. US 671,938
* 2,000 Sepracor, Inc. US 136,250
* 13,200 Sunrise Assisted Living, Inc. US 308,550
10,000 Tenet Healthcare Corp. US 393,125
------------
42,449,448
------------
MULTI-INDUSTRY 0.4%
5,300 Metallgesellschaft AG DE $ 55,343
65 ISS AS DK 4,003
* 180 Corporacion Financiera Alba SA ES 4,584
300 Sociedad General de Aguas
de Barcelona SA ES 3,693
195 Kesko Oyj FI 1,631
1,500 Vivendi FR 107,859
44,600 Hutchison Whampoa Ltd. HK 553,297
* 400,000 New World Infrastructure Ltd. HK 364,159
14,000 Swire Pacific Ltd. (Class A) HK 86,347
832 SNIA SPA IT 1,723
5,000 Itochu Corp. JP 21,303
5,000 Mitsubishi Corp. JP 41,231
5,000 Mitsui & Co. Ltd. JP 33,214
100 Toho Co. Ltd. JP 14,413
425 Sonae SGPS SA PT 516
* 1,779 Sonae SGPS SA (New Shares) PT 2,084
240 Trelleborg AB SE 1,344
2,000 Keppel Corp. SG 3,988
204,000 Singapore Technology
Engineering Ltd. SG 328,939
39,000 Synnex Technology
International Corp., ADR TW 321,750
31,000 TI Group PLC UK 168,857
14,400 Minnesota Mining &
Manufacturing Co. US 1,391,400
------------
3,511,678
------------
RAW MATERIALS 1.3%
50 Boehler-Uddeholm AG AT 1,571
120 Radex-Heraklith
Industriebeteiligungs AG AT 2,547
49,000 Broken Hill Proprietary Co. Ltd. AU 477,896
40,000 Broken Hill
Proprietary Co. Ltd., ADR AU 792,500
* 4,050 OneSteel Ltd. AU 1,943
23,400 WMC Ltd. AU 90,006
20 Glaverbel SA BE 1,358
180 Solvay SA BE 9,169
70 Union Miniere SA BE 2,466
171 Alcan Aluminium Ltd. CA 5,397
5,900 Alcan Aluminium Ltd. CA 186,302
54,000 Dofasco, Inc. CA 750,542
* 7,010 Inco Ltd. CA 109,179
10,100 Noranda, Inc. CA 99,228
9,100 BASF AG DE 355,370
10,450 Bayer AG DE 447,569
9,300 Henkel KGaA DE 478,530
20,000 Thyssen Krupp AG DE 289,492
115 Acerinox SA ES 3,201
200 Asturiana De Zinc, SA ES 1,703
144 Empresa Nacional De
Celulosas SA ES 2,132
75 Portland Valderrivas SA ES 1,305
250 Uralitta SA ES 1,312
200 Viscofan Industria Navarra
De Envolturas Celulosicas SA ES 1,049
9,400 Outokumpo Oyj FI 65,437
The accompanying notes are an integral part of these financial statements.
28 FREMONT MUTUAL FUNDS
<PAGE>
FREMONT GOLBAL FUND
October 31, 2000
SCHEDULE OF INVESTMENTS IN SECURITIES AND NET ASSETS
Country Value
Shares Security Description Code (Note 1)
--------------------------------------------------------------------------------
RAW MATERIALS (Cont.)
5,970 Upm-Kymmene Oyj FI $ 169,026
6,800 Compagnie de Saint-Gobain FR 899,989
2,395 Jefferson Smurfit Group PLC IE 4,270
4,085 Pirelli SPA IT 11,860
5,000 Asahi Chemical Industry Co. Ltd. JP 30,969
6,000 Asahi Glass Co. Ltd. JP 61,572
3,000 Bridgestone Corp. JP 29,742
4,000 Dainippon Ink and
Chemicals, Inc. JP 12,938
1,000 Fujikura Ltd. JP 8,814
1,000 Inax Corp. JP 4,774
2,000 Kaneka Corp. JP 19,425
15,000 Kawasaki Steel Corp. JP 14,706
2,000 Kokuyo Co. Ltd. JP 30,786
2,000 Kyowa Hakko Kogyo JP 15,998
8,000 Mitsubishi Chemical Corp. JP 25,289
5,000 Mitsubishi Materials Corp. JP 14,706
3,000 Mitsui Mining & Smelting Co. Ltd. JP 25,289
4,000 Nippon Paper Industries Co. Ltd. JP 22,796
9,000 Nippon Sheet Glass Co. JP 136,888
23,000 Nippon Steel Corp. JP 37,301
5,000 Oji Paper Co. Ltd. JP 29,091
1,000 Sekisui Chemical Co. Ltd. JP 2,886
12,000 Shin-Etsu Chemical Co. Ltd. JP 492,578
6,000 Sumitomo Chemical Co. JP 29,577
37,000 Sumitomo Forestry Co. JP 233,581
9,000 Sumitomo Metal Industries Ltd. JP 4,948
8,000 The Furukawa Electric Co. Ltd. JP 210,372
4,000 Tosoh Corp. JP 12,168
1,000 Toto Ltd. JP 7,587
41,069 Hansol Paper Ltd., GDR KR 63,185
20,000 Pohang Iron & Steel
Co. Ltd., ADR KR 316,250
140,000 Kimberly-Clark de Mexico SA MX 358,017
15,208 DSM NV NL 438,968
70 Norske Skogindustrier ASA
(Class A) NO 2,524
3,105 Carter Holt Harvey Ltd. NZ 2,065
1,678 Fletcher Challenge Building NZ 1,203
277 CIMPOR-Cimentos de
Portugal, SGPS, SA PT 6,185
400 Portucel Industrial-Empresa
Produtora de Celulosa SA PT 2,255
150 Sapa AB SE 2,100
160 SSAB Svenskt Stal AB (Series A) SE 1,296
200 SSAB Svenskt Stal AB (Series B) SE 1,580
425 Svenska Cellulosa AB (Class B) SE 8,713
24,000 BOC Group PLC UK 335,089
1,751 Corus Group PLC UK 1,588
80,061 Laporte PLC UK 612,039
* 720,549 Laporte PLC (Class B) UK 8,362
47,050 Northern Technologies
International Corp. US 326,409
22,000 Weyerhaeuser Co. US 1,032,625
------------
10,297,583
------------
REAL ESTATE INVESTMENT TRUSTS 0.0%
78,375 Beni Stabili IT $ 34,333
3,000,000 Sm Prime Holdings PH 234,604
------------
268,937
------------
RETAIL 1.8%
100 Colruyt NV BE 3,858
115 Delhaize Le Lion SA BE 5,272
* 23,500 InterTAN, Inc. CA 259,969
7,000 Metro AG DE 278,116
80 Cortefiel SA ES 1,436
460 TelePizza SA ES 1,761
100 Stockmann AB FI 1,193
3,650 Pinault-Printemps-Redoute SA FR 651,650
1,000 Fyffes PLC IE 739
480 La Rinascente SPA IT 2,453
200 Aoyama Trading Co. JP 1,631
4,000 Daiei, Inc. JP 6,817
1,000 Hankyu Department Stores, Inc. JP 4,041
1,000 Isetan Co. Ltd. JP 8,494
1,000 Ito-Yokado Co. Ltd. JP 45,171
16,000 Jusco Co. Ltd. JP 300,531
1,000 Marui Co. Ltd. JP 14,752
1,000 Mycal Corp. JP 2,309
* 4,000 Seiyu Ltd. JP 12,278
1,000 Takashimaya Co. Ltd. JP 7,303
1,000 The Daimaru, Inc. JP 2,859
5,700 LG Home Shopping, Inc. KR 342,752
* 50,599 Cifra SA de CV MX 121,986
* 200,000 Wal-Mart de Mexico SA de CV MX 454,973
7,200 Hagemeyer NV NL 170,231
1,800 Hennes & Mauritz AB (Series B) SE 33,660
* 9,100 Abercrombie & Fitch Co.
(Class A) US 214,419
* 3,100 American Eagle Outfitters, Inc. US 106,756
* 6,800 AnnTaylor Stores Corp. US 204,000
* 6,100 Bebe Stores, Inc. US 93,025
* 14,000 Bed Bath & Beyond, Inc. US 361,375
* 19,000 Best Buy Co., Inc. US 953,563
* 24,900 Buca, Inc. US 389,063
9,100 CBRL Group, Inc. US 162,663
* 6,900 Electronics Boutique
Holdings Corp. US 107,813
3,000 Family Dollar Stores, Inc. US 58,313
* 5,400 Finish Line, Inc. (Class A) US 41,175
18,250 Gap, Inc. US 471,078
* 26,000 Genesco, Inc. US 461,500
* 14,300 Good Guys, Inc. US 84,013
* 30,400 Gymboree Corp. US 271,700
28,600 Home Depot, Inc. US 1,229,800
* 8,400 Jack in the Box, Inc. US 205,800
* 15,500 Kohls Corp. US 839,906
9,200 Limited, Inc. US 232,300
14,000 Lowe's Cos., Inc. US 639,625
* 8,000 Office Depot, Inc. US 66,500
* 8,700 Quicksilver, Inc. US 166,388
5,500 Radioshack Corp. US 327,938
21,000 Sears, Roebuck & Co. US 624,330
* 35,500 Staples, Inc. US 505,875
The accompanying notes are an integral part of these financial statements.
FREMONT MUTUAL FUNDS 29
<PAGE>
FREMONT GOLBAL FUND
October 31, 2000
SCHEDULE OF INVESTMENTS IN SECURITIES AND NET ASSETS
Country Value
Shares Security Description Code (Note 1)
--------------------------------------------------------------------------------
RETAIL (Cont.)
* 2,000 Starbucks Corp. US $ 89,375
* 7,100 Stein Mart, Inc. US 110,050
* 4,400 The Buckle, Inc. US 73,975
* 6,300 The Children's Place
Retail Stores, Inc. US 163,406
3,000 TJX Companies, Inc. US 81,750
* 3,600 ValueVision International, Inc. US 72,900
* 41,500 Venator Group, Inc. US 586,188
37,000 Wal-Mart Stores, Inc. US 1,678,875
------------
14,411,672
------------
SHELTER 0.1%
100 Acs, Actividades de
Construccion y Servicios SA ES 2,189
260 Fomento de Construcciones y
Contractas SA ES 4,779
300 Inmobilaria Ubris SA ES 1,197
99 Metrovacesa SA ES 1,340
7,092 New World Development Co. HK 8,412
16,000 Sekisui House Ltd. JP 169,177
* 1,459,000 Filinvest Land, Inc. PH 30,806
245 Drott AB SE 2,879
245 Skanska AB (Class B) SE 9,702
2,000 City Developments Ltd. SG 9,230
3,750 DBS Land Ltd. SG 5,705
* 33,700 Modtech Holdings, Inc. US 358,063
------------
603,479
------------
TECHNOLOGY (COMPONENTS) 5.4%
30 Barco NV BE 3,367
* 10,200 Infineon Technologies AG DE 416,079
* 20,000 Infineon Technologies AG, ADR DE 857,500
3,800 Advantest Corp. JP 495,455
800 Fanuc Ltd. JP 71,834
6,200 Hirose Electronics JP 715,778
58,000 NEC Corp. JP 1,105,369
41,000 NICHICON Corp. JP 732,170
28,000 Nikon Corp. JP 406,890
15,000 Taiyo Yuden Co. Ltd. JP 573,117
27,000 Tokyo Electron Ltd. JP 2,112,699
7,000 Samsung Electro-Mechanics
Co. Ltd. KR 224,000
2,330 Samsung Electronics KR 291,890
3,000 Samsung Electronics, GDR KR 90,750
1,400 Samsung Electronics, GDR KR 103,600
5,930 Samsung Electronics, GDR (144A) KR 438,820
31,800 STMicroelectronics NV
(New York Shares) NL 1,651,613
* 10,000 Chartered Semiconductor
Manufacturing Ltd. SG 43,302
265,000 Natsteel Electronics Ltd. SG 688,508
23,120 Asustek Computer, Inc. TW 126,582
9,100 Hon Hai Precision
Industry Co., GDR TW 104,878
* 102,056 Ritek Corp., GDR TW 391,068
* 103,220 Taiwan Semiconductor
Manufacturing Co. Ltd., ADR TW 2,341,804
* 13,000 ARM Holdings PLC UK 128,327
* 9,200 Bookham Technology PLC UK 309,925
TECHNOLOGY (COMPONENTS) (Cont.)
* 127,000 Dimension Data Holdings Ltd. UK $ 1,112,726
* 18,000 Analog Devices, Inc. US 1,170,000
* 12,500 Anaren Microwave, Inc. US 1,300,000
* 4,000 Broadcom Corp. US 889,500
* 19,600 California Amplifier, Inc. US 490,000
* 42,200 California Micro Devices Corp. US 535,413
* 1,000 CIENA Corp. US 105,125
* 59,000 Cisco Systems, Inc. US 3,178,625
* 3,000 Conexant Systems, Inc. US 78,938
* 33,000 EMC Corp. US 2,939,063
59,200 Intel Corp. US 2,664,000
* 23,000 Jabil Circuit, Inc. US 1,312,438
* 39,000 JDS Uniphase Corp. US 3,173,625
7,500 Linear Technology Corp. US 484,219
39,150 Lucent Technologies, Inc. US 912,684
* 7,000 Maxim Integrated Products, Inc. US 464,188
* 2,500 Microchip Technology, Inc. US 79,063
* 9,000 Micron Technology, Inc. US 312,750
* 12,900 Microsemi Corp. US 516,000
* 13,000 Network Appliance, Inc. US 1,547,000
* 17,500 Parlex Corp. US 280,000
* 2,000 PMC-Sierra, Inc. US 339,000
* 1,000 QLogic Corp. US 96,750
* 10,000 Qualcomm, Inc. US 651,094
* 2,000 Rambus, Inc. US 89,875
* 1,800 Sage, Inc. US 23,850
* 2,000 Sanmina Corp. US 228,625
* 1,000 SDL, Inc. US 259,250
* 12,000 Solectron Corp. US 528,000
* 10,300 Spectra-Physics Lasers, Inc. US 363,719
* 10,200 Vitesse Semiconductor Corp. US 713,363
* 22,200 Xilinx, Inc. US 1,608,113
------------
42,872,321
------------
TECHNOLOGY (EQUIPMENT) 4.2%
* 5,000 Mitel Corp. CA 82,145
1,800 Aixtron AG DE 251,374
32,000 Nokia Corp., ADR FI 1,368,000
50,640 Nokia Oyj FI 2,084,625
455 Sirti SPA IT 653
53,000 Canon, Inc. JP 2,102,712
900 Hikari Tsushin Inc. JP 15,256
84,000 Hitachi Ltd. JP 900,495
1,100 Keyence Corp. JP 341,671
1,000 Omron Corp. JP 24,647
1,900 TOKYO SEIMITSU Co., Ltd. JP 134,048
* 5,500 ASM Lithography Holding NV NL 150,396
29,500 ASM Lithography Holding NV
(New York Registered) NL 820,469
24,800 Ericsson (L.M.)
Telephone Co., ADR SE 344,100
217,400 Telefonaktiebolaget LM
Erricsson AB (Class B) SE 2,891,420
1,500 Creative Technology Ltd. SG 24,358
4,500 Creative Technology Ltd. SG 75,938
* 250,000 iSoftel, Ltd. SG 71,221
183,712 BAE SYSTEMS PLC UK 1,047,316
* 11,000 Applied Materials, Inc. US 584,375
The accompanying notes are an integral part of these financial statements.
30 FREMONT MUTUAL FUNDS
<PAGE>
FREMONT GOLBAL FUND
October 31, 2000
SCHEDULE OF INVESTMENTS IN SECURITIES AND NET ASSETS
Country Value
Shares Security Description Code (Note 1)
--------------------------------------------------------------------------------
TECHNOLOGY (EQUIPMENT) (Cont.)
* 26,000 Applied Micro Circuits Corp. US $ 1,985,750
* 39,500 Axsys Technologies, Inc. US 1,797,250
14,450 BEI Technologies, Inc. US 514,781
* 15,400 Cabletron Systems, Inc. US 417,725
* 30,750 COMARCO, Inc. US 593,859
32,440 Compaq Computer Corp. US 986,500
10,000 Corning, Inc. US 765,000
* 28,000 Dell Computer Corp. US 826,000
* 8,800 Echostar Communications Corp.
(Class A) US 398,200
* 1,000 Gateway, Inc. US 51,610
31,040 Hewlett-Packard Co. US 1,441,420
* 2,000 Integrated Device Technology, Inc. US 112,625
15,000 International Business
Machines Corp. US 1,477,500
* 3,000 KLA-Tencor Corp. US 101,438
* 3,000 Lexmark International
Group, Inc. US 123,000
* 23,900 Micro Component Technology,
Inc. US 107,550
45,500 Motorola, Inc. US 1,134,656
* 32,600 Netopia, Inc. US 354,525
* 2,000 Novellus Systems, Inc. US 81,875
* 4,500 PRI Automation, Inc. US 101,813
* 31,100 Repeater Technologies, Inc. US 108,850
* 3,000 RF Micro Devices, Inc. US 59,813
* 13,200 Rimage Corp. US 132,000
* 23,000 RIT Technologies Ltd. US 206,281
13,300 Scientific-Atlanta, Inc. US 910,219
* 15,000 Sun Microsystems, Inc. US 1,663,125
* 10,000 Tellabs, Inc. US 499,375
18,000 Texas Instruments, Inc. US 883,125
* 19,400 Trikon Technologies, Inc. US 318,888
* 6,528 United Technologies Corp. US 455,736
* 15,600 Varian Semiconductor
Equipment Associates, Inc. US 358,800
* 20,900 Zygo Corp. US 1,034,550
------------
33,319,058
------------
TECHNOLOGY (SOFTWARE) 2.7%
* 1,400 ATI Technologies, Inc. CA 11,362
* 2,400 Intershop Communications AG DE 120,823
* 2,300 T-Online International AG DE 46,960
* 4,300 Terra Networks SA ES 104,006
10,000 Fuji Soft ABC, Inc. JP 657,871
3,600 Softbank Corp. JP 216,053
* 5,000 Trend Micro, Inc. JP 471,871
* 1,000 PT Multimedia.com PT 5,094
4,200 Adobe Systems, Inc. US 319,463
* 1,000 Art Technology Group, Inc. US 62,750
* 8,000 BEA Systems, Inc. US 574,000
* 4,000 Broadvision, Inc. US 119,000
* 7,500 Check Point Software
Technologies Ltd. US 1,187,813
* 4,600 Citrix Systems, Inc. US 101,775
15,000 Computer Associates
International, Inc. US 478,125
* 14,300 Critical Path, Inc. US 694,444
TECHNOLOGY (SOFTWARE) (Cont.)
* 7,200 Docent, Inc. US $ 185,400
* 13,000 Electronic Arts, Inc. US 650,000
* 6,500 Inktomi Corp. US 412,344
* 1,000 Intuit, Inc. US 61,438
* 3,500 McData Corp. - Class B US 291,758
* 14,000 MDSI Mobile Data Solutions, Inc. US 180,250
* 3,300 Mercury Interactive Corp. US 366,300
* 2,500 Micromuse, Inc. US 424,219
* 45,200 Microsoft Corp. US 3,113,150
* 16,900 New Era of Networks, Inc. US 263,006
* 13,100 Novadigm, Inc. US 131,000
* 5,000 Novell, Inc. US 45,000
* 5,800 Onyx Software Corp. US 92,075
* 58,200 Oracle Corp. US 1,920,600
* 33,300 PC-Tel, Inc. US 574,425
* 11,500 Peregrine Systems, Inc. US 276,000
* 25,000 Primus Knowledge Solutions, Inc. US 203,125
* 26,300 Princeton Video Image, Inc. US 115,063
* 45,400 Puma Technology, Inc. US 615,738
* 2,000 Rational Software Corp. US 119,375
* 21,900 ServiceWare Technologies, Inc. US 128,663
* 15,000 Siebel Systems, Inc. US 1,574,063
* 19,200 SmartForce Public Ltd. Co. US 966,300
* 16,900 Take-Two Interactive
Software, Inc. US 210,194
* 8,000 TIBCO Software, Inc. US 504,000
* 4,800 VeriSign, Inc. US 633,600
* 12,750 VERITAS Software Corp. US 1,797,949
* 9,500 Vignette Corp. US 283,219
* 6,100 VocalTec Communications Ltd. US 51,850
* 5,500 Websense, Inc. US 99,000
------------
21,460,514
------------
TRANSPORTATION 0.1%
80 Austrian Airline/Osterreichische
Luftverkehrs AG AT 813
60 Compagnia Maritime
Belge SA (CMB) BE 3,871
2 D/S 1912 (Class B) DK 19,160
2 D/S Svendborg - B DK 26,459
100 Finnlines Oyj FI 1,638
8,000 Cathay Pacific Airways HK 14,515
* 150,000 MTR Corp. HK 222,150
690 Ryanair Holdings PLC IE 5,418
3,345 Alitalia SPA IT 5,651
15 East Japan Railway Co. JP 86,174
8,000 Japan Airlines Company Ltd. JP 32,032
8,000 Kinki Nippon Railway Co. Ltd. JP 34,671
4,000 Nippon Express Co. Ltd. JP 24,006
8,000 Nippon Yusen Kabushiki Kaisha JP 37,530
5,000 Tobo Railway Co. Ltd. JP 14,752
3,000 Tokyu Corp. JP 15,503
2,000 Yamato Transport Co. Ltd. JP 40,407
* 4,000 Koninklijke Luchtvaart
Maatschapij NV NL 73,010
200 Bergesen d.y. ASA NO 3,660
200 Bergesen d.y. ASA (Class A) NO 3,982
300 SAS Norge ASA (Class B) NO 2,551
The accompanying notes are an integral part of these financial statements.
FREMONT MUTUAL FUNDS 31
<PAGE>
FREMONT GOLBAL FUND
October 31, 2000
SCHEDULE OF INVESTMENTS IN SECURITIES AND NET ASSETS
Shares/ Country Value
Face Amount Security Description Code (Note 1)
--------------------------------------------------------------------------------
TRANSPORTATION (Cont.)
650 Brisa-auto Estradas de
Portugal SA PT $ 5,027
2,000 Singapore Airlines Ltd. SG 20,056
290 BAA PLC UK 2,425
16,100 British Airways PLC UK 72,049
------------
767,510
------------
UTILITIES 4.6%
65 Oesterreichische
Elektrizitaetswirtschafts AG
(Class A) AT 5,241
190,000 Telstra Corp. Ltd. AU 623,899
120 Electrabel SA BE 26,070
6,400 Brasil Telecom Participacoes SA BR 346,800
780 Swisscom AG CH 198,097
* 12,509 Enersis SA, ADR CL 222,035
38,600 Deutsche Telekom AG DE 1,389,426
600 Veba AG DE 30,358
400 GN Store Nord AS DK 7,755
470 Tele Danmark AS DK 22,245
16,375 Endesa SA ES 266,910
975 Gas Natural SDG SA ES 16,720
1,955 Iberdrola SA ES 23,916
* 65,573 Telefonica SA ES 1,250,864
1,708 Telefonica SA, ADR ES 98,957
660 Union Electrica Fenosa SA ES 12,209
185 Lyonnaise Des Eaux-Dumez FR 28,192
* 160,500 China Mobile (Hong Kong) New HK 1,034,149
5,500 CLP Holdings Ltd. HK 25,671
16,500 Hong Kong & China Gas Co. Ltd. HK 20,840
335,000 PT Telekomunikasi ID 85,943
5,900 Enel SPA IT 21,888
1,510 Italgas SPA IT 6,243
69,370 Olivetti SPA IT 210,648
324,460 Telecom Italia Mobil SPA IT 2,760,012
3,420 Telecom Italia Mobil SPA (RNC) IT 18,146
1,965 Telecom Italia SPA (RNC) IT 10,693
33,040 Telecom Italia SPA
(Savings Shares) IT 382,873
12 DDI Corp. JP 56,295
3,500 Kansai Electric Power Co. JP 57,307
179 Nippon Telegraph & Telephone JP 1,628,615
37 NTT Mobile Communication
Network, Inc. JP 911,948
10,000 Osaka Gas Co. JP 24,647
2,500 Tohoku Electric Power Co., Inc. JP 33,672
4,000 Tokyo Electric Power Co., Inc. JP 97,123
10,000 Tokyo Gas Co. Ltd. JP 26,113
20,000 Korea Electric Power Corp., ADR KR 243,750
34,000 Telefonos de Mexico SA
(Class L), ADR MX 1,833,875
300,000 Telekom Malaysia Berhad MY 923,684
3,720 Telecom Corp Of
New Zealand Ltd. NZ 8,267
117,319 Manila Electric Co. (Class B) PH 96,332
32,900 Philippine Long Distance
Telephone Co. PH 498,485
6,600 Electricidade De Portugal SA PT 17,930
UTILITIES (Cont.)
20,075 Portugal Telecom SA PT $ 178,948
* 1,000 PT Multimedia PT 28,355
* 3,200 Telecel-Comunicacoes Pessoais SA PT 35,099
* 225 NetCom Systems AB (Class B) SE 10,553
10,000 Datacraft Asia Ltd. SG 68,500
573,000 Singapore
Telecommunications Ltd. SG 950,048
89,368 British Telecommunications PLC UK 1,048,765
* 12,600 Lattice Group PLC UK 26,822
1,076,129 Vodafone Group PLC UK 4,484,067
* 18,000 AES Corp. US 1,017,000
* 11,800 Alamosa PCS Holdings, Inc. US 179,213
1,000 ALLTEL Corp. US 64,438
* 8,000 American Tower Corp. (Class A) US 327,500
106,700 AT&T Corp. US 2,474,106
23,200 BellSouth Corp. US 1,120,850
* 35,900 Cadiz, Inc. US 381,438
* 19,000 Calpine Corp. US 1,499,813
32,000 KeySpan Corp. US 1,126,000
* 23,850 Qwest Communications
International, Inc. US 1,159,706
31,000 SBC Communications, Inc. US 1,788,313
31,470 Verizon Communications US 1,819,359
* 45,650 WorldCom, Inc. US 1,084,188
* 17,000 XO Communications, Inc. US 573,484
------------
37,051,408
------------
TOTAL STOCKS (Cost $353,563,331) 382,446,546
------------
BONDS 30.3%
COLLATERALIZED MORTGAGE OBLIGATIONS 0.6%
E 100,000 Icr-4 A 6moeur, 4.693%, 03/20/15 84,895
189,632 RAMS 7E PTN, 5.061%, 09/26/32 160,956
400,000 Haus 2000-1A A2, 5.146%, 12/10/37 339,580
$ 165,779 AMRES 1999-1 A, 7.092%, 06/25/29 166,361
200,000 BOAMS 1999-5 A4,
6.500%, 05/25/29 183,062
111,641 CHLT 1999-1 A2, 6.590%, 02/25/02 111,580
300,000 CRGT 1999-1 A2, 7.010%, 02/15/30 300,750
218,992 FHR 2006 B, 6.500%, 08/15/23 216,802
250,000 FHR 2255 Z, 7.500%, 09/15/30 235,937
300,000 GNR 2000-35-F 1MOLIB+28,
7.169%, 11/30/30 299,719
299,938 JPMC 2000-FL1 A,
6.900%, 04/15/10 299,938
294,368 NHEL 1998-1 A, 6.895%, 04/25/28 293,411
61,717 PSBL 1997-3 A3, 6.830%, 05/20/18 61,235
675,174 RMS 8 A, 7.051%, 05/12/32 675,174
79,088 SASCC 1999-C3 A,
7.020%, 10/21/13 79,142
241,607 SBM7 1999-AQ2 A1,
7.041%, 11/10/29 242,187
223,418 SBM7 1999-LB1 A,
6.922%, 06/25/29 223,152
100,000 SMLG 1A A2, 6.915%, 06/15/26 99,970
184,295 TORR 2000-1GA A,
6.880%, 07/15/31 184,295
The accompanying notes are an integral part of these financial statements.
32 FREMONT MUTUAL FUNDS
<PAGE>
FREMONT GOLBAL FUND
October 31, 2000
SCHEDULE OF INVESTMENTS IN SECURITIES AND NET ASSETS
Value
Face Amount Security Description (Note 1)
--------------------------------------------------------------------------------
COLLATERALIZED MORTGAGE OBLIGATIONS (Cont.)
$ 286,555 UPMLA 1999-2 A2,
7.070%, 10/25/29 $ 286,219
------------
4,544,365
------------
FOREIGN CORPORATE BONDS 7.6%
AU$
4,000,000 John Hancock Global Fund,
6.750%, 02/15/06 2,049,274
CN$
140,000 Beneficial Canada, Inc.,
6.350%, 04/01/02 91,935
2,000,000 Osterreich Kontrollbank,
9.000%, 06/19/02 1,372,544
2,000,000 Tokyo Electric Power Co., Inc.,
10.500%, 06/14/01 1,346,060
DK
29,597,000 Realkredit, 6.000%, 10/01/29 3,169,516
E 100,000 GMAC Australia Finance,
5.015%, 03/25/02 84,789
2,000,000 Allgemeine Hypobk AG,
5.000%, 09/02/09 1,601,502
2,000,000 DePfa Pfandbriefbank AG,
4.500%, 11/12/02 1,669,715
90,000 DePfa Pfandbriefbank AG,
4.750%, 07/15/08 71,844
90,000 DePfa Pfandbriefbank AG,
5.750%, 03/04/09 76,333
2,000,000 Deutsche Hypo, 5.750%, 07/19/10 1,686,015
343,000 Eurohpobank AG, 4.000%, 04/27/09 257,266
160,000 Hypothekenbk in Essen,
4.750%, 06/29/06 130,018
2,000,000 Hypothekenbk In Essen,
5.250%, 07/05/05 1,678,374
100,000 Hypothekenbk in Essen,
5.250%, 01/22/08 82,255
400,000 Hypothekenbk in Essen,
5.500%, 02/20/07 335,845
2,000,000 Kredit Fuer Wiederaufbau,
3.500%, 07/15/04 1,595,771
3,000,000 Alcatel, 4.375%, 02/17/09 2,227,730
34,650 AXA SA, 2.500%, 01/01/14 31,511
180,000 Buoni Poliennali Del Tesoro,
4.250%, 11/01/09 139,049
430,000 Buoni Poliennali Del Tesoro,
5.500%, 11/01/10 364,574
2,000,000 Tecnost International NV,
6.665%, 06/23/04 1,729,056
2,500,000 Deutsche Telekom,
6.125%, 07/06/05 2,129,803
170,000 Lloyds TSBBank PLC,
5.625%, 07/15/49 137,809
3,000,000 Daimlerchrysler NA Hldg,
4.875%, 11/04/02 2,515,906
(Pound)
2,000,000 Abbey National Treasury Service,
6.500%, 03/05/04 2,902,651
80,000 Abbey National Treasury Service,
7.625%, 12/30/02 118,845
7,069 BAE SYSTEMS PLC,
7.450%, 11/29/03 10,478
90,000 BG Transco Holdings PLC,
7.273%, 12/14/09 130,838
FOREIGN CORPORATE BONDS (Cont.)
(Pound)
2,000,000 Railtrack PLC, 9.125%, 03/25/06 $ 3,227,295
(Yen)
200,000,000 Westpac Banking Corp. Ltd.,
0.875%, 09/22/03 1,831,501
2,962,560 SHL Corp. Ltd., 0.794%, 12/25/24 27,149
5,000,000 SHL Corp. Ltd., 1.094%, 12/25/24 45,820
28,000,000 Korea Development Bank,
2.700%, 08/16/02 257,342
300,000,000 Petroliam Nasional BHD,
3.600%, 06/12/06 2,970,264
300,000,000 A/S Eksortfinans,
1.800%, 06/21/10 2,723,612
200,000,000 Banque Central de Tunisie,
3.300%, 08/02/10 1,807,770
17,000,000 KFW Interational Finance,
1.750%, 03/23/10 155,265
400,000,000 Toyota Motor Credit Puerto Rico,
1.000%, 12/20/04 3,655,881
SK
3,000,000 Eurofima, 4.750%, 07/07/04 293,881
$ 2,000,000 Daiwa PB Ltd., 7.828%, 07/29/49 1,544,528
3,000,000 Cia Petrolifera Marlim,
12.250%, 09/26/08 2,883,000
100,000 Comp Fin CIC-UE,
7.498%, 10/29/49 95,500
100,000 Allied Irish Banks PLC,
7.028%, 09/07/06 100,392
1,000,000 Sony Corp., 6.125%, 03/04/03 986,407
140,000 Petroleos Mexicanos,
8.850%, 09/15/07 137,725
150,000 Petroleos Mexicanos,
9.375%, 12/02/08 152,948
3,000,000 Petroleos Mexicanos,
9.500%, 09/15/27 3,038,370
3,000,000 Sanluis Corp., 8.875%, 03/18/08 2,685,000
3,000,000 AES China Generating Co.,
10.125%, 12/15/06 2,151,066
200,000 Korea Development Bank,
9.600%, 12/01/00 200,286
------------
60,708,308
------------
FOREIGN GOVERNMENT BONDS 9.5%
AU$
100,000 Government of Australia,
8.750%, 08/15/08 60,440
CN$
4,000,000 Canada Government,
6.000%, 06/01/08 2,647,092
2,000,000 Japan Highway Public Corp.,
7.875%, 09/27/02 1,352,763
2,000,000 Republic Of Finland,
9.500%, 09/15/04 1,456,595
DK
20,000,000 Government of Denmark,
6.000%, 11/15/02 2,300,534
1,700,000 Kingdom Of Denmark,
7.000%, 11/15/07 210,416
E
2,906,920 Republic Of Austria,
5.625%, 07/15/07 2,480,169
7,000,000 Bundesobligation,
3.750%, 08/26/03 5,738,223
3,000,000 Cades, 5.125%, 10/25/08 2,473,373
910,000 Deutsche Bundesrepublik,
5.250%, 01/04/08 773,703
The accompanying notes are an integral part of these financial statements.
FREMONT MUTUAL FUNDS 33
<PAGE>
FREMONT GOLBAL FUND
October 31, 2000
SCHEDULE OF INVESTMENTS IN SECURITIES AND NET ASSETS
Value
Face Amount Security Description (Note 1)
--------------------------------------------------------------------------------
FOREIGN GOVERNMENT BONDS (Cont.)
E
650,000 Deutsche Bundesrepublik,
5.250%, 01/04/11 $ 552,314
720,000 Deutsche Bundesrepublik,
6.000%, 07/04/07 637,405
3,000,000 Deutschland Republic,
5.625%, 01/04/28 2,537,427
2,000,000 Deutschland Republic,
6.500%, 10/14/05 1,796,548
3,000,000 Treuhandanstalt, 6.750%, 05/13/04 2,672,782
560,000 Government of Spain,
4.950%, 07/30/05 466,899
3,208,096 Government of Spain,
6.000%, 01/31/08 2,811,891
3,000,000 Government of Finland,
5.750%, 02/23/11 2,606,064
160,000 Government of France,
4.000%, 10/25/09 122,928
120,000 Government of France,
5.500%, 04/25/07 103,056
4,187,470 Government of France,
8.500%, 10/25/19 4,701,425
1,020,000 Italy Buoni Poliennali Del Tesoro,
4.500%, 05/01/09 804,813
3,000,000 Italy Buoni Poliennali Del Tesoro,
4.000%, 07/15/04 2,437,081
580,000 Italy Buoni Poliennali Del Tesoro,
4.750%, 07/01/05 480,574
490,000 Italy Buoni Poliennali Del Tesoro,
5.250%, 11/01/29 375,552
560,000 Italy Buoni Poliennali Del Tesoro,
6.500%, 11/01/27 507,170
6,000,000 United Mexican States,
8.125%, 09/10/04 2,851,783
546,000 Government of Netherlands,
3.750%, 07/15/09 413,234
670,000 Government of Netherlands,
5.250%, 07/15/08 566,806
670,000 Government of Netherlands,
5.500%, 07/15/10 574,769
145,000 Government of Netherlands,
5.500%, 01/15/28 120,328
485,000 Government of Netherlands,
5.750%, 02/15/07 422,240
445,000 Government of Netherlands,
6.000%, 01/15/06 391,005
350,000 Government of Netherlands,
7.500%, 01/15/23 362,769
630,000 Government of Spain,
5.150%, 07/30/09 506,759
100,000 International Credit Recovery,
5.494%, 03/15/10 84,895
(Pound)
2,000,000 European Investment Bank,
6.000%, 11/26/04 2,886,984
30,000 U.K. Treasury Stock,
5.750%, 12/07/09 45,389
GD
700,000,000 Hellenic Republic, 6.600%, 01/15/04 1,792,971
800,000,000 Hellenic Republic, 7.600%, 01/22/02 2,038,734
1,000,000,000 Hellenic Republic, 8.800%, 06/19/07 2,885,234
FOREIGN GOVERNMENT BONDS (Cont.)
(Yen)
200,000,000 Province of Ontario,
1.875%, 01/25/10 $ 1,836,815
28,000,000 Japan Government,
1.400%, 06/22/09 246,161
108,100,000 Japanese Government Bond,
0.900%, 12/22/08 931,544
12,000,000 United Mexican States,
5.000%, 09/30/02 114,619
10,000,000 International Credit Recovery,
0.497%, 08/23/05 91,625
2,454,767 International Credit Recovery,
0.715%, 11/22/04 22,492
10,000,000 International Credit Recovery,
0.815%, 11/22/04 91,625
NZ
$ 7,000,000 Inter-American Development Bank,
5.750%, 04/15/04 2,676,379
2,000,000 International Bank of
Reconstruction & Development,
7.250%, 04/09/01 797,774
4,500,000 International Bank of
Reconstruction & Development,
7.250%, 05/27/03 1,804,401
100,000 New Zealand Government Bond,
4.500%, 02/15/16 42,022
800,000 New Zealand Government Bond,
5.500%, 04/15/03 310,846
$ 2,000,000 Republic Of Brazil,
11.625%, 04/15/04 2,027,600
3,000,000 Ontario Global, 7.000%, 08/04/05 3,035,700
2,690,000 Quebec, Province of,
7.220%, 07/22/36 2,754,910
40,000 Bancomext Trust Division,
8.000%, 08/05/03 39,974
450,000 Peru Pdi Brady, 4.500%, 03/07/17 266,350
------------
76,141,974
------------
MORTGAGE BACKED OBLIGATIONS 4.5%
E
223,115 Originated Mortgage Loans PLC,
5.371%, 12/15/31 189,792
(Pound)
1,400,000 FHLB, 5.625%, 06/10/03 2,001,513
(Yen)
400,000,000 FNMA, 1.750%, 03/26/08 3,708,814
$ 200,000 Detroit Edison 1st Mtge,
7.371%, 07/15/28 199,937
3,000,000 FHLMC, 6.450%, 04/29/09 2,847,270
3,000,000 FHLMC, 6.875%, 01/15/05 3,038,430
3,000,000 FNMA, 6.000%, 02/19/04 2,910,930
4,000,000 FNMA, 7.125%, 06/15/10 4,120,640
1,600,000 FNMA, 7.500%, 11/13/30 1,597,504
293,062 FNMA ARM, 8.027%, 06/01/30 290,145
2,635,558 GNMA, 6.500%, 10/20/28 2,532,194
2,262,179 GNMA I, 5.500%, 05/20/14 2,134,230
4,550,000 GNMA I TBA, 6.500%, 11/20/30 4,392,160
2,060,000 GNMA I TBA, 7.000%, 11/20/30 1,940,911
800,000 GNMA I TBA , 7.000%, 11/20/30 788,504
2,597,839 GNSF, 6.500%, 11/15/28 2,507,720
250,000 Government Lease Trust,
4.000%, 05/18/11 182,987
174,590 Medallion Trust, 7.032%, 07/12/31 174,590
------------
35,558,271
------------
The accompanying notes are an integral part of these financial statements.
34 FREMONT MUTUAL FUNDS
<PAGE>
FREMONT GOLBAL FUND
October 31, 2000
SCHEDULE OF INVESTMENTS IN SECURITIES AND NET ASSETS
Value
Face Amount Security Description (Note 1)
--------------------------------------------------------------------------------
U.S. CORPORATE BONDS 4.3%
(Euro)
2,000,000 Crown Cork & Seal Fin SA,
6.000%, 12/06/04 $ 1,313,241
150,000 KBC Bank Funding Trust,
8.220%, 11/29/49 127,597
(Pound)
2,000,000 Ford Motor Credit Co.,
7.250%, 02/22/05 2,935,144
520,000 General Motors Acceptance Corp.,
6.875%, 09/09/04 758,423
(Yen)
400,000,000 Ford Motor Credit Co.,
1.000%, 12/22/03 3,626,168
28,000,000 Ford Motor Credit Co.,
1.200%, 02/07/05 252,369
400,000,000 Procter & Gamble Co.,
2.000%, 06/21/10 3,599,414
$ 2,000,000 Crown Cork & Seal SA,
6.750%, 12/15/03 1,440,000
100,000 Allegheny Energy Supply,
7.511%, 05/01/02 100,000
120,000 Bear Stearns Co., Inc.,
7.010%, 03/28/03 119,874
13,000 Beckman Instruments, Inc.,
7.100%, 03/04/03 12,620
3,000,000 BellSouth Telecommunications, Inc.,
6.375%, 06/01/28 2,535,990
1,000,000 BP America, Inc., 5.750%, 07/30/01 991,550
15,000 CMS Energy Corp., 8.125%, 05/15/02 14,858
3,000,000 Export-Import Bank of Korea,
7.100%, 03/15/07 2,972,490
300,000 Ford Motor Credit Corp.,
7.213%, 07/18/05 298,538
2,000,000 Frank Russell Co., 5.625%, 01/15/09 1,792,754
2,500,000 General Electric Capital Corp.,
8.850%, 03/01/07 2,747,350
1,465,000 Ingersoll-Rand, 6.015%, 02/15/28 1,459,960
240,000 J Seagram & Sons, 5.790%, 04/15/01 237,972
15,000 Jones Intercable, Inc.,
8.875%, 04/01/07 15,638
50,000 JP Morgan & Co, 8.080%, 02/15/12 43,780
400,000 Juniper Networks, 4.750%, 03/15/07 542,500
10,000 MGM Grand, Inc., 6.950%, 02/01/05 9,503
2,000,000 Monsanto Co., 6.500%, 12/01/18 1,789,314
100,000 Oneok, Inc., 7.411%, 04/24/02 100,068
30,000 Sprint Capital Corp.,
5.875%, 05/01/04 28,554
3,000,000 Sunamerica, Inc., 6.750%, 10/01/07 2,932,710
2,000,000 Wisconsin Electric Power,
6.500%, 06/01/28 1,723,344
------------
34,521,723
------------
U.S. GOVERNMENT & AGENCIES 3.8%
$ 1,600,000 U.S. Treasury Bond,
0.000%, 02/15/15 684,192
300,000 U.S. Treasury Bond, 8.750%,
08/15/20 394,173
4,372,250 U.S. Treasury
Inflationary Protection,
3.375%, 01/15/07 4,258,834
U.S. GOVERNMENT & AGENCIES (Cont.)
$ 6,469,868 U.S. Treasury
Inflationary Protection,
3.625%, 07/15/02+ $ 6,481,966
533,872 U.S. Treasury
Inflationary Protection,
3.625%, 04/15/28 512,848
6,318,175 U.S. Treasury
Inflationary Protection,
3.875%, 01/15/09 6,320,146
4,727,293 U.S. Treasury
Inflationary Protection,
3.875%, 04/15/29 4,745,021
4,200,000 U.S. Treasury Note,
5.625%, 05/15/08+ 4,140,948
100,000 U.S. Treasury Note,
6.250%, 08/15/23 103,156
3,000,000 U.S. Treasury Note,
6.500%, 10/15/06 3,093,270
------------
30,734,554
------------
TOTAL BONDS (Cost $264,748,911) 242,209,195
------------
PUT OPTIONS 0.0%
13,000 Put Option on U.S. Treasury
Note, 5.625%, Strike @ 105.000,
Exp. 11/01/00 82,589
48,000 Put Option on U.S. Treasury Note,
6.375%, Strike @ 103.000,
Exp. 11/01/00 125,184
------------
TOTAL PUT OPTIONS (Cost $242,688) 207,773
------------
SHORT-TERM INVESTMENTS 22.2%
$ 2,700,000 Alcoa, Inc., CP,
6.470% (a), 11/27/00 $ 2,687,383
1,000,000 Alcoa, Inc., CP, 6.550% (a), 01/08/01 987,628
2,700,000 AT&T Discount Note, CP,
6.480% (a), 12/05/00 2,683,476
100,000 AT&T Discount Note, CP,
6.510% (a), 11/29/00 99,494
900,000 Bank One Corp. Discount Note, CP,
6.530% (a), 01/10/01 888,572
200,000 Becton Dickinson & Co., CP,
6.480% (a), 12/08/00 198,668
2,700,000 Caterpillar Financial, CP,
6.460% (a), 11/13/00 2,694,186
9,410,000 Chevron USA, Inc., CP,
6.550% (a), 11/03/00 9,406,576
2,700,000 Ciesco, LP, CP, 6.480% (a), 11/09/00 2,696,112
2,700,000 CIT Group, Inc., CP,
6.450% (a), 12/05/00 2,683,552
2,700,000 Du Pont (E.I.) de Nemours & Co.,
CP, 6.440% (a), 12/21/00 2,675,850
7,000,000 Ford Motor Credit Co. of
Puerto Rico, CP, 6.490% (a), 11/16/00 6,981,071
2,700,000 Ford Motor Credit Co., CP,
6.490% (a), 11/21/00 2,690,265
The accompanying notes are an integral part of these financial statements.
FREMONT MUTUAL FUNDS 35
<PAGE>
FREMONT GOLBAL FUND
October 31, 2000
SCHEDULE OF INVESTMENTS IN SECURITIES AND NET ASSETS
Value
Face Amount Security Description (Note 1)
--------------------------------------------------------------------------------
SHORT-TERM INVESTMENTS (Cont.)
$2,700,000 International Business Machines
Credit Corp., CP,
6.460% (a), 11/03/00 $ 2,699,031
8,500,000 Lucent Technologies, Inc., CP,
6.600% (a), 12/01/00 8,453,250
1,000,000 Metlife Funding, Inc., CP,
6.470% (a), 11/06/00 999,101
100,000 Motorola, Inc., CP,
6.490% (a), 12/27/00 98,990
8,800,000 Nordstrom, Inc., CP,
6.580% (a), 11/02/00 8,798,392
2,700,000 Philip Morris Cos., Inc., CP,
6.460% (a), 12/06/00 2,683,042
6,000,000 Toyota Motor Credit Corp., CP,
6.470% (a), 11/01/00** 6,000,000
6,000,000 Unilever Capital Corp., CP,
6.500% (a), 11/02/00** 5,998,917
700,000 Verizon Global Funding, CP,
6.470% (a), 12/14/00 694,590
200,000 Verizon Global Funding, CP,
6.530% (a), 01/19/01 197,134
600,000 DaimlerChrysler North America
Holding, CP, 6.540% (a), 01/31/01 590,081
6,000,000 Ford Motor Credit Corp., CP,
6.490% (a), 11/22/00 5,977,285
5,000,000 Ford Motor Credit Corp., CP,
6.490% (a), 11/28/00 4,975,663
2,700,000 General Motors Acceptance
Corp., CP, 6.460% (a), 11/09/00 2,696,124
10,000,000 Gannett Co., Inc., CP,
6.500% (a), 11/01/00 10,000,000
2,700,000 British Telecom, CP,
6.500% (a), 11/09/00 2,696,100
6,000,000 FCE Bank PLC, CP,
6.490% (a), 11/07/00 5,993,510
2,000,000 AIG Funding, Inc., CP,
6.460% (a), 11/30/00 1,989,592
400,000 Associates Corp. of
North America, CP, 6.530% (a), 01/10/01 394,921
24,300,000 Associates Corp. of
North America, CP, 6.620% (a), 11/01/00 24,300,000
2,700,000 Associates First Capital Corp., CP,
6.460% (a), 11/02/00 2,699,516
300,000 General Electric Capital Corp., CP,
6.550% (a), 01/24/01 295,415
300,000 General Electric Capital Corp., CP,
6.570% (a), 01/10/01 296,168
6,000,000 Queen's Health Systems, CP,
6.530% (a), 11/08/00** 5,992,382
4,930,000 U.S. Treasury Bill,
5.940%, 12/21/00+ 4,888,881
7,000,000 France Telecom, CP,
6.500% (a), 11/14/00** 6,983,569
5,000,000 France Telecom, CP,
6.500% (a), 11/20/00** 4,982,847
SHORT-TERM INVESTMENTS (Cont.)
$1,218,956 Repurchase Agreement, State
Street Bank and Trust Co.,
5.980%, 11/01/00
(Maturity Value $1,219,158)
(Cost $1,218,956) Collateral:
FFCB, 5.875%, 07/02/01 $ 1,218,956
161,137 Repurchase Agreement,
State Street Bank and Trust Co.,
5.980%, 11/01/00
(Maturity Value $161,164)
(Cost $161,137) Collateral:
FNMA, 0.000%, 11/24/00 161,137
57,890 Repurchase Agreement,
State Street Bank and Trust Co.,
5.980%, 11/01/00
(Maturity Value $57,900)
(Cost $57,890) Collateral:
FNMA, 5.800%, 03/15/02 57,890
185,708 Repurchase Agreement,
State Street Bank and Trust Co.,
5.980%, 11/01/00
(Maturity Value $185,739)
(Cost $185,708) Collateral:
FNMA, 6.000%, 11/15/01 185,708
273,698 Repurchase Agreement,
State Street Bank and Trust Co.,
5.980%, 11/01/00
(Maturity Value $273,744)
(Cost $273,698) Collateral:
FHLMC, 6.680%, 12/28/01 273,698
293,174 Repurchase Agreement,
State Street Bank and Trust Co.,
5.980%, 11/01/00
(Maturity Value $293,222)
(Cost $293,174) Collateral:
FNMA, 0.000%, 01/10/01 293,174
3,655,694 Repurchase Agreement,
State Street Bank and Trust Co.,
5.980%, 11/01/00
(Maturity Value $3,656,302)
(Cost $3,655,694) Collateral:
FHLB, 7.090%, 09/19/03 3,655,694
308,285 Repurchase Agreement,
State Street Bank and Trust Co.,
5.980%, 11/01/00
(Maturity Value $308,336)
(Cost $308,285) Collateral:
FHLB, 7.750%, 02/22/05 308,285
48,440 Repurchase Agreement,
State Street Bank and Trust Co.,
5.980%, 11/01/00
(Maturity Value $48,448)
(Cost $48,440) Collateral:
FNMA, 6.400%, 12/21/01 48,440
The accompanying notes are an integral part of these financial statements.
36 FREMONT MUTUAL FUNDS
<PAGE>
FREMONT GOLBAL FUND
October 31, 2000
SCHEDULE OF INVESTMENTS IN SECURITIES AND NET ASSETS
Value
Face Amount Security Description (Note 1)
--------------------------------------------------------------------------------
SHORT-TERM INVESTMENTS (Cont.)
$ 51,072 Repurchase Agreement,
State Street Bank and Trust Co.,
5.980%, 11/01/00
(Maturity Value $51,080)
(Cost $51,072) Collateral:
FNMA, 0.000%, 12/21/00 $ 51,072
593,019 Repurchase Agreement,
State Street Bank and Trust Co.,
5.980%, 11/01/00
(Maturity Value $593,118)
(Cost $593,019) Collateral:
FHLB, 7.750%, 02/22/05 593,019
625,617 Repurchase Agreement,
State Street Bank and Trust Co.,
5.980%, 11/01/00
(Maturity Value $625,721)
(Cost $625,617) Collateral:
FHLB, 5.750% 03/15/09 625,617
9,805,221 Repurchase Agreement,
State Street Bank and Trust Co.,
5.980%, 11/01/00
(Maturity Value $9,806,849)
(Cost $9,805,221) Collateral:
FNMA, 6.030%, 08/06/01 9,805,221
------------
TOTAL SHORT-TERM INVESTMENTS
(Cost $177,025,245) 177,025,245
------------
TOTAL INVESTMENTS
(Cost $795,580,175), 100.3% 801,888,759
------------
OTHER ASSETS AND LIABILITIES, NET, (0.3)% (2,398,291)
------------
NET ASSETS, 100.0% $799,490,468
============
The accompanying notes are an integral part of these financial statements.
FREMONT MUTUAL FUNDS 37
<PAGE>
FREMONT INTERNATIONAL GROWTH FUND
October 31, 2000
Country Value
Shares Security Description Code (Note 1)
--------------------------------------------------------------------------------
STOCKS 86.4%
BUSINESS EQUIPMENT & SERVICES 5.3%
* 73,500 Cable & Wireless Optus Ltd. AU $ 156,632
18,000 Abitibi-Consolidated, Inc. CA 157,915
9,600 Nortel Network Corp. CA 436,800
250 Adecco SA CH 172,884
16,760 Bouygues SA FR 853,704
11,800 Carbone Lorraine SA FR 503,886
88,000 Integra SA FR 713,458
900,000 Hung Hing Printing Group HK 340,437
9,000 USHIO, Inc. JP 156,679
137,600 Invensys PLC UK 327,847
100,000 Photobition Group PLC UK 252,404
4,166 Reuters Group PLC, ADR UK 491,067
------------
4,563,713
------------
CAPITAL GOODS 4.9%
54,000 Bombardier, Inc. (Class B) CA 849,905
58 Holderbank Financiere
Glarus AG (Class B) CH 60,954
5,900 Siemens AG DE 751,321
240,000 Johnson Electric Holdings Ltd. HK 476,996
15,000 CRH PLC IE 229,599
5,100 CRH PLC IE 77,414
8,000 Fuji Machine Manufacturing
Co. Ltd. JP 218,435
2,000 Mabuchi Motors Co. Ltd. JP 213,671
122,000 Mitsubishi Heavy Industries JP 473,960
6,000 Murata Manufacturing Co. Ltd. JP 717,977
7,000 THK Co. Ltd. JP 173,172
------------
4,243,404
------------
CONSUMER DURABLES 7.4%
28,000 Kokusai Electric Co. Ltd. JP 225,252
700 Magna International, Inc. CA 31,419
1,750 Geberit International AG CH 418,649
9,800 Bayerische Motoren
Werke (BMW) AG DE 327,797
3,000 DaimlerChrysler AG DE 139,695
* 3,100 Epcos AG DE 236,331
8,700 Michelin (Class B) FR 251,858
1,600 Peugeot SA FR 294,755
10,000 Fiat SPA (Preferred) IT 149,245
* 96,000 Mitsubishi Motors JP 307,861
3,200 Nintendo Co. Ltd. JP 529,229
103,000 Nissan Motor Co. Ltd. JP 706,863
3,200 Rohm Co. Ltd. JP 806,597
18,400 Sony Corp. JP 1,470,112
5,000 Koninklijke (Royal) Philips
Electronics NV NL 196,574
54,772 Dixons Group PLC UK 162,877
15,600 GKN PLC UK 180,130
------------
6,435,244
------------
CONSUMER NON-DURABLES 5.1%
248 Compagnie Financiere
Richemont AG CH 689,866
171 Nestle SA (Registered Shares) CH 354,377
3,200 Christian Dior SA FR 162,727
CONSUMER NON-DURABLES (Cont.)
2,900 Groupe Danone FR $ 405,730
3,000 LVMH FR 219,029
6,300 Societe BIC SA FR 218,482
6,008 Hellenic Bottling Co. SA GR 82,275
102,000 Li & Fung Ltd. HK 189,645
65,000 Toray Industries, Inc. JP 253,115
6,000 Uni-Charm Corp. JP 256,734
5,500 Heineken Holding NV (Class A) NL 196,107
10,900 Heineken NV NL 592,228
4,000 VNU NV NL 188,467
12,500 Cadbury Schweppes PLC UK 77,290
8,000 Pearson PLC UK 215,153
123 Reckitt & Coleman PLC UK 1,619
29,200 Tate & Lyle PLC UK 93,292
31,100 Unilever PLC UK 210,681
------------
4,406,817
------------
CONSUMER SERVICES 4.0%
26,865 News Corp. Ltd. AU 282,754
23,300 Thomson Corp. CA 941,677
350 Public Groupe SA CH 205,430
1,225 Selecta Group CH 298,165
10,000 Societe Television Francaise 1 FR 545,875
* 9,500 Wanadoo FR 120,975
1,400 Societe Europeenne des Satellites LU 186,599
* 8,000 United Pan Europe
Communications NV NL 140,247
15,000 Singapore Press Holdings Ltd. SG 214,518
* 31,700 Granada Media PLC UK 183,936
55,000 Rank Group PLC UK 136,828
10,700 Reuters Group PLC UK 208,297
------------
3,465,301
------------
ENERGY 2.2%
131,400 ENI SPA IT 711,702
10,500 Norsk Hydro ASA NO 417,021
2,000 Norsk Hydro ASA, ADR NO 78,875
3,900 Lukoil-Holding, ADR RU 203,775
65,700 Shell Transport & Trading Co. UK 528,940
------------
1,940,313
------------
FINANCIAL SERVICES (BANKS) 7.0%
50,889 Australia & New Zealand
Banking Group Ltd. AU 378,211
21,265 Westpac Banking Corp. Ltd. AU 146,110
13,800 Bank Of Nova Scotia CA 394,493
3,800 Toronto-Dominion Bank CA 104,758
1,240 UBS AG CH 171,777
4,600 Dresdner Bank AG DE 186,081
23,000 Banco Bilbao Vizcaya SA ES 306,556
7,200 Banco Popular Espanol SA ES 215,464
22,000 Allied Irish Banks PLC IE 224,123
27,000 Sakura Bank Ltd. JP 196,674
31,000 Sanwa Bank Ltd. JP 275,518
19,611 ABN Amro Holding NV NL 454,511
18,600 ForeningSparbanken AB
(Series A) SE 266,910
The accompanying notes are an integral part of these financial statements.
38 FREMONT MUTUAL FUNDS
<PAGE>
FREMONT INTERNATIONAL GROWTH FUND
October 31, 2000
Country Value
Shares Security Description Code (Note 1)
--------------------------------------------------------------------------------
FINANCIAL SERVICES (BANKS) (Cont.)
18,000 Svenska Handelsbanken AB
(Class A) SE $ 282,600
21,050 DBS Group Holdings Ltd. SG 248,268
2,250 Bangkok Bank of Commerce
Public Co. Ltd. (Local Shares) TH 0
11,930 First Bangkok City Bank Public
Co. Ltd. (Foreign Registered) TH 0
11,930 Siam City Bank Public Co. Ltd.
(Foreign Registered) TH 0
37,400 Halifax Group PLC UK 294,319
149,702 Lloyds TSB Group PLC UK 1,525,533
17,000 Royal Bank Of Scotland
Group PLC (Value Shares) UK 381,986
------------
6,053,892
------------
FINANCIAL SERVICES (OTHER) 5.0%
21,000,000 Sanwa International Financial
Bermuda Trust BM 223,200
146 Swiss Re CH 287,947
39,000 Cheung Kong (Holdings) Ltd. HK 431,316
5,200 Assicurazioni Generali SPA IT 171,063
2,900 Aiful Corp. JP 228,514
6,000 Daiwa Securities Co. Ltd. JP 66,465
20,000 Mitsui Fudosan Co. Ltd. JP 242,258
43,000 Mitsui Marine and Fire
Insurance Co. Ltd. JP 218,270
10,000 Nomura Securities Co. Ltd. JP 212,113
1,600 Orix Corp. JP 167,858
31,106 Aegon NV NL 1,235,878
5,000 ING Groep NV NL 343,485
79,000 Morgan Crucible Co. PLC UK 308,840
24,576 Royal & Sun Alliance
Insurance Group PLC UK 174,774
------------
4,311,981
------------
HEALTH CARE 6.7%
508 Novartis AG (Registered Shares) CH 770,712
19 Roche Holding AG (Genusss) CH 173,568
18,580 Sanofi Synthelabo SA FR 977,956
17,000 Chugai Pharmaceutical Co. Ltd. JP 288,474
12,000 Sankyo Co. Ltd. JP 264,431
19,000 Shionogi & Co. Ltd. JP 370,808
5,000 Yamanouchi Pharmaceutical
Co. Ltd. JP 226,315
16,800 AstraZeneca Group PLC UK 789,347
20,067 AstraZeneca Group PLC UK 947,162
13,161 AstraZeneca Group PLC, ADR UK 627,615
* 43,000 Cantab Pharmaceuticals PLC UK 57,386
9,085 Glaxo Wellcome PLC UK 261,070
------------
5,754,844
------------
MULTI-INDUSTRY 1.8%
2,400 Vivendi FR 172,575
54,300 Hutchison Whampoa Ltd. HK 673,632
25,000 Swire Pacific Ltd. (Class A) HK 154,190
182,000 Singapore Technology
Engineering Ltd. SG 293,465
53,800 TI Group PLC UK 293,049
------------
1,586,911
------------
RAW MATERIALS 4.4%
72,929 Broken Hill Proprietary Co. Ltd. AU $ 711,275
* 18,232 OneSteel Ltd. AU 8,748
39,000 WMC Ltd. AU 150,011
9,900 Alcan Aluminium Ltd. CA 312,608
1,261 Holderbank Financiere
Glarus AG CH 371,120
2,500 Thyssen Krupp AG DE 36,186
6,900 Upm-Kymmene Oyj FI 195,356
2,300 Compagnie de Saint-Gobain FR 304,408
5,500 Pechiney SA FR 205,446
29,000 Mitsui Chemicals, Inc. JP 148,268
15,000 Nippon Sheet Glass Co. JP 228,147
4,000 Shin-Etsu Chemical Co. Ltd. JP 164,193
11,000 The Furukawa Electric Co. Ltd. JP 289,262
10,590 Pohang Iron & Steel
Co. Ltd., ADR KR 167,454
3,457 DSM NV NL 99,784
39,000 Billiton PLC UK 149,071
32,000 Laporte PLC UK 244,629
* 288,000 Laporte PLC (Class B) UK 3,342
------------
3,789,308
------------
RETAIL 1.7%
9,200 Metro AG DE 365,524
17,800 Homac Corp. JP 252,795
24,000 Jusco Co. Ltd. JP 450,797
50,000 Mycal Corp. JP 115,448
11,700 Hagemeyer NV NL 276,626
------------
1,461,190
------------
SHELTER 0.3%
25,000 Sekisui House Ltd. JP 264,339
------------
264,339
------------
TECHNOLOGY (COMPONENTS) 12.8%
* 14,200 Infineon Technologies AG DE 579,247
* 10,300 Infineon Technologies AG, ADR DE 441,613
5,710 Advantest Corp. JP 744,487
4,000 Fanuc Ltd. JP 359,172
4,600 Hirose Electronics JP 531,061
18,000 Kyoden Co. Ltd. JP 395,822
81,000 NEC Corp. JP 1,543,705
6,000 NICHICON Corp. JP 107,147
42,000 Nikon Corp. JP 610,335
10,000 Taiyo Yuden Co. Ltd. JP 382,078
16,100 Tokyo Electron Ltd. JP 1,259,795
1,800 Samsung Electro-Mechanics
Co. Ltd. KR 57,600
5,900 Samsung Electronics KR 739,121
8,620 Samsung Electronics, GDR KR 637,880
2,400 STMicroelectronics NV NL 121,128
12,600 STMicroelectronics NV
(New York Shares) NL 654,413
* 25,000 Chartered Semiconductor
Manufacturing Ltd. SG 108,256
22,600 Asustek Computer, Inc. TW 123,735
* 53,988 Taiwan Semiconductor
Manufacturing Co. Ltd., ADR TW 1,224,853
The accompanying notes are an integral part of these financial statements.
FREMONT MUTUAL FUNDS 39
<PAGE>
FREMONT INTERNATIONAL GROWTH FUND
October 31, 2000
Shares/ Country Value
Face Amount Security Description Code (Note 1)
--------------------------------------------------------------------------------
TECHNOLOGY (COMPONENTS) (Cont.)
* 54,000 Dimension Data Holdings Ltd. UK $ 473,128
------------
11,094,576
------------
TECHNOLOGY (EQUIPMENT) 6.5%
* 7,100 Mitel Corp. CA 116,646
2,600 Aixtron AG DE 363,096
36,800 Nokia Corp., ADR FI 1,573,200
23,200 Nokia Oyj FI 955,042
36,000 Hitachi Ltd. JP 385,926
800 Keyence Corp. JP 248,488
3,100 Tokyo Seimitsu Co., Ltd. JP 218,710
* 5,100 ASM Lithography Holding NV NL 139,458
24,800 ASM Lithography Holding
NV, ADR NL 689,750
38,400 Ericsson (L.M.) Telephone
Co., ADR SE 532,800
12,800 Telefonaktiebolaget LM
Erricsson AB (Class B) SE 170,240
34,023 BAE Systems PLC UK 193,960
------------
5,587,316
------------
TECHNOLOGY (SOFTWARE) 0.5%
* 3,100 ATI Technologies, Inc. CA 25,159
* 4,200 Intershop Communications AG DE 211,439
* 1,000 T-Online International AG DE 20,417
3,000 Fuji Soft ABC, Inc. JP 197,361
------------
454,376
------------
TRANSPORTATION 0.3%
21,000 Japan Airlines Company Ltd. JP 84,085
30,000 British Airways PLC UK 134,253
------------
218,338
------------
UTILITIES 10.5%
1,425 Swisscom AG CH 361,909
6,700 Deutsche Telekom AG DE 241,170
* 10,762 Telefonica SA ES 205,295
4,630 Telefonica SA, ADR ES 268,235
* 83,000 China Mobile (Hong Kong) New HK 534,794
52,000 Tecnost SPA IT 175,257
49,000 Telecom Italia Mobil SPA IT 416,817
63,200 Telecom Italia SPA (RNC) IT 343,920
14,334 Telecom Italia SPA
(Savings Shares) IT 166,105
22 DDI Corp. JP 103,207
22 Nippon Telegraph & Telephone JP 200,165
58 NTT Mobile Communication
Network, Inc. JP 1,429,540
200 Korea Telecom Corp. SP, ADR KR 7,375
24,700 Telefonos de Mexico SA
(Class L), ADR MX 1,332,256
10,000 Portugal Telecom SA PT 89,140
9,000 Portugal Telecom SA, ADR PT 78,750
* 1,500 PT Multimedia PT 42,532
* 10,000 Telecel-Comunicacoes
Pessoais SA PT 109,684
7,000 Datacraft Asia Ltd. SG 47,950
712,552 Vodafone Group PLC UK 2,969,096
------------
9,123,197
------------
TOTAL STOCKS (Cost $70,841,163) 74,755,060
------------
SHORT-TERM INVESTMENTS 7.0%
$ 3,900,000 Associates Corp. of North America,
6.620% (a), 11/01/00 $ 3,900,000
2,168,362 Repurchase Agreement, State
Street Bank and Trust Co.,
5.980%, 11/01/00 (Maturity
Value $2,168,723)
(Cost $2,168,362) Collateral:
FHLMC, 5.750%, 05/15/01 2,168,362
------------
TOTAL SHORT-TERM INVESTMENTS (Cost $6,068,362) 6,068,362
------------
TOTAL INVESTMENTS (Cost $76,909,525), 93.4% 80,823,422
------------
OTHER ASSETS AND LIABILITIES, NET, 6.6% 5,693,870
------------
NET ASSETS, 100.0% $ 86,517,292
============
The accompanying notes are an integral part of these financial statements.
40 FREMONT MUTUAL FUNDS
<PAGE>
FREMONT EMERGING MARKETS FUND
October 31, 2000
Country Value
Shares Security Description Code (Note 1)
--------------------------------------------------------------------------------
STOCKS 92.2%
BUSINESS EQUIPMENT & SERVICES 0.5%
190 Cheil Communications, Inc. KR $ 12,193
4,660 S1 Corp. KR 48,341
------------
60,534
------------
CAPITAL GOODS 1.2%
7,300 Cemex SA de CV, ADR MX 154,212
------------
154,212
------------
CONSUMER DURABLES 1.6%
395,000 Guangdong Kelon Electrical
Holdings Co. Ltd. CN 73,441
15,995 Far Eastern Textile Ltd., GDR TW 129,556
------------
202,997
------------
CONSUMER NON-DURABLES 7.4%
18,000 Companhia de Bebidas das
Americas, ADR BR 406,125
* 15,000 Al-AhramBeverages Co. EG 196,701
3,000 Hite Brewery Co. Ltd. KR 134,242
5,000 Coca-Cola FEMSA SA de
CV, ADR MX 95,937
50,000 Groupo Modelo SA de CV MX 133,354
------------
966,359
------------
CONSUMER SERVICES 1.7%
* 4,200 Grupo Televisa SA, GDR MX 227,325
------------
227,325
------------
ENERGY 9.2%
14,500 Petroleo Brasileiro SA, ADR BR 384,533
* 704,000 China Petroleum &
Chemical Corp. CN 138,114
555,000 Huaneng Power
International, Inc. CN 215,273
8,000 SK Corp. Ltd. KR 96,352
15,000 Surgutneftegaz, ADR RU 192,750
70,000 PTT Exploration & Production
Public Co. Ltd. TH 170,596
------------
1,197,618
------------
FINANCIAL SERVICES (BANKS) 10.0%
3,600 OTP Bank Ltd., ADR HU 166,776
49,693 Kookmin Bank KR 567,920
25,500 KorAm Bank KR 135,626
164,400 Grupo Financiero Banamex
Accival SA MX 255,516
* 2,006,400 Yapi ve Kredi Bankasi SA TR 173,503
------------
1,299,341
------------
FINANCIAL SERVICES (OTHER) 0.9%
5,300 Samsung Fire and Marine
Insurance KR 123,007
------------
123,007
------------
HEALTH CARE 3.7%
30,000 Pliva D.D., GDR HR 316,500
3,800 EGIS Rt. HU 160,537
------------
477,037
------------
MULTI-INDUSTRY 9.0%
726,000 China Resources Enterprise Ltd. HK $ 819,203
* 43,000 Groupo Carso SA de CV MX 135,373
300,000 IOI Corp. Berhad MY 213,158
------------
1,167,734
------------
RAW MATERIALS 11.7%
13,100 Aracruz Celulose SA BR 196,500
27,000 Hindalco Industries Ltd., GDR IN 410,400
10,000 Korea Zinc Co. KR 131,868
47,500 Kimberly-Clark de Mexico SA MX 121,470
80,000 Billiton PLC UK 305,786
51,700 Sappi Ltd. ZA 354,475
------------
1,520,499
------------
REAL ESTATE INVESTMENT TRUSTS 0.4%
* 571,600 Golden Land Property
Development Public Co. Ltd. TH 55,982
------------
55,982
------------
RETAIL 4.2%
* 105,000 Wal-Mart de Mexico SA de CV MX 238,861
120,000 Migros Turk TAS TR 165,328
52,000 President Chain Store Corp. TW 148,111
------------
552,300
------------
TECHNOLOGY (COMPONENTS) 6.3%
2,030 Samsung Electronics KR 254,308
120,000 Clipsal Industries (Holdings) Ltd. SG 225,628
* 125,400 Siliconware Precision
Industries Co. TW 95,506
* 78,560 Taiwan Semiconductor
Manufacturing Co. TW 238,355
------------
813,797
------------
TRANSPORTATION 3.6%
1,500,000 Guangshen Railway Co.
Ltd. (Hong Kong Shares) CN 182,720
851,000 Zhejiang Expressway Co. Ltd. CN 137,490
* 9,500 Grupo Aeroportuario de
Sureste SA MX 141,312
------------
461,522
------------
UTILITIES 20.8%
15,000 Embratel Participacoes SA BR 242,813
8,651 Tele Norte Leste Participacoes
SA, ADR BR 191,403
6,800 Tele Norte Leste Participacoes
SA, ADR BR 150,450
16,500 Compania Telecomunicaciones
de Chile SA CL 251,625
87,000 Asia Satellite Telecommunications
Holdings Ltd. HK 176,258
7,400 Matav Rt, ADR HU 173,900
* 25,500 Partner Communications Co. Ltd. IL 153,000
47,300 Videsh Sanchar Nigam Ltd. IN 348,838
8,500 Korea Telecom Corp. SP, ADR KR 313,438
7,400 Telefonos de Mexico SA
(Class L), ADR MX 399,138
25,000 Telekomunikacja Polska
SA, GDR PL 123,215
189,400 Electricity Generating Public
Co. Ltd. (Foreign Registered) TH 180,104
------------
2,704,182
------------
TOTAL STOCKS (Cost $14,282,213) 11,984,446
------------
The accompanying notes are an integral part of these financial statements.
FREMONT MUTUAL FUNDS 41
<PAGE>
FREMONT EMERGING MARKETS FUND
October 31, 2000
Value
Face Amount Security Description (Note 1)
--------------------------------------------------------------------------------
SHORT-TERM INVESTMENT 2.3%
$ 306,807 Repurchase Agreement, State
Street Bank and Trust Co.,
5.980%, 11/01/00
(Maturity Value $306,858)
(Cost $306,807) Collateral:
FHLB, 5.750%, 03/15/09 $ 306,807
------------
TOTAL SHORT-TERM INVESTMENT (Cost $306,807) 306,807
------------
TOTAL INVESTMENTS (Cost $14,589,020), 94.5% 12,291,253
------------
OTHER ASSETS AND LIABILITIES, NET, 5.5% 710,231
------------
NET ASSETS, 100.0% $ 13,001,484
============
The accompanying notes are an integral part of these financial statements.
42 FREMONT MUTUAL FUNDS
<PAGE>
FREMONT U.S. MICRO-CAP FUND
October 31, 2000
SCHEDULE OF INVESTMENTS IN SECURITIES AND NET ASSETS
Value
Shares Security Description (Note 1)
--------------------------------------------------------------------------------
STOCKS 74.9%
BUSINESS EQUIPMENT & SERVICES 12.9%
* 277,500 Agency.com, Inc. $ 2,913,750
* 1,060,500 Boston Communications Group, Inc. (b) 25,054,312
* 209,700 Bright Horizons Family Solutions, Inc. 5,242,500
* 168,000 Corporate Executive Board Co. 7,749,000
* 360,900 CoStar Group, Inc. 11,278,125
* 768,100 Datalink Corp. (b) 9,217,200
* 255,100 Infocrossing, Inc. 3,204,694
* 512,300 Media 100, Inc. 5,058,962
* 169,200 Shuffle Master, Inc. 3,796,425
* 1,045,000 Spectrum Control, Inc. (b) 12,931,875
* 732,000 TeleTech Holdings, Inc. 20,313,000
------------
106,759,843
------------
CAPITAL GOODS 3.4%
* 584,300 Aaon, Inc. (b) 12,343,337
* 336,400 IMPCO Technologies, Inc. 6,622,875
* 212,900 Oshkosh Truck Corp. 8,755,512
------------
27,721,724
------------
CONSUMER DURABLES 0.4%
* 632,300 Jore Corp. 3,714,762
------------
3,714,762
------------
CONSUMER NON-DURABLES 2.3%
* 57,300 Concord Camera Corp. 1,772,719
231,500 K-Swiss, Inc. 6,366,250
* 509,200 McNaughton Apparel Group, Inc. (b) 7,001,500
* 204,500 Universal Electronics, Inc. 3,757,687
------------
18,898,156
------------
CONSUMER SERVICES 6.7%
* 568,800 American Classic Voyages Co. 7,856,550
1,275,000 Cash America International, Inc. (b) 6,614,062
* 501,100 Championship Auto Racing Teams, Inc. 12,464,863
* 240,900 Internet.com Corp. 5,013,731
* 1,098,300 Lojack Corp. (b) 8,786,400
* 651,200 Nucentrix Broadband Networks, Inc. (b) 14,733,400
------------
55,469,006
------------
ENERGY 1.1%
* 982,200 Newpark Resources, Inc. 8,839,800
------------
8,839,800
------------
HEALTH CARE 13.2%
* 800,700 ArthroCare Corp. 18,165,881
* 813,200 eBenX, Inc. 9,707,575
* 643,300 Eclipsys Corp. 15,881,469
* 1,113,700 Endocare, Inc. (b) 19,698,569
* 791,100 Fusion Medical Technologies, Inc. (b) 6,526,575
* 824,500 Gene Logic, Inc. 17,984,406
* 842,900 Innerdyne, Inc. 5,900,300
* 411,000 NeoPharm, Inc. 14,898,750
------------
108,763,525
------------
RAW MATERIALS 0.3%
* 347,850 Northern Technologies
International Corp. (b) 2,413,209
------------
2,413,209
------------
RETAIL 7.7%
* 188,000 Bebe Stores, Inc. $ 2,867,000
* 455,600 Buca, Inc. 7,118,750
* 213,200 Electronics Boutique Holdings Corp. 3,331,250
* 181,600 Finish Line, Inc. (Class A) 1,384,700
* 811,000 Genesco, Inc. 14,395,250
* 458,400 Good Guys, Inc. 2,693,100
* 980,100 Gymboree Corp. 8,759,644
* 723,600 Intertan, Inc. 8,004,825
* 222,100 Quicksilver, Inc. 4,247,663
* 227,300 Stein Mart, Inc. 3,523,150
* 136,800 The Buckle, Inc. 2,299,950
* 196,900 The Children's Place Retail Stores, Inc. 5,107,094
------------
63,732,376
------------
SHELTER 1.3%
* 1,033,900 Modtech Holdings, Inc. (b) 10,985,188
------------
10,985,188
------------
TECHNOLOGY (COMPONENTS) 10.3%
* 201,700 Anaren Microwave, Inc. 20,976,800
* 578,200 California Amplifier, Inc. 14,455,000
* 1,089,500 California Micro Devices Corp. (b) 13,823,031
* 390,100 Microsemi Corp. 15,604,000
* 529,000 Parlex Corp. (b) 8,464,000
* 51,300 Sage, Inc. 679,725
* 316,200 Spectra-Physics Lasers, Inc. 11,165,813
------------
85,168,369
------------
TECHNOLOGY (EQUIPMENT) 8.4%
301,500 BEI Technologies, Inc. 10,740,938
* 644,100 COMARCO, Inc. (b) 12,439,181
* 804,600 Micro Component Technology, Inc. (b) 3,620,700
* 636,350 Netopia, Inc. 6,920,306
* 945,400 Repeater Technologies, Inc. 3,308,900
* 415,000 Rimage Corp. 4,150,000
* 696,100 RIT Technologies Ltd. (b) 6,243,147
* 243,000 Trikon Technologies, Inc. 3,994,313
* 367,600 Zygo Corp. 18,196,200
------------
69,613,685
------------
TECHNOLOGY (SOFTWARE) 5.5%
* 485,710 Exigent International, Inc. (b) 986,598
* 421,700 MDSI Mobile Data Solutions, Inc. 5,429,388
* 446,000 Novadigm, Inc. 4,460,000
* 609,100 PC-Tel, Inc. 10,506,975
* 583,500 Primus Knowledge Solutions, Inc. 4,740,938
* 468,500 Princeton Video Image, Inc. 2,049,688
* 704,900 Puma Technology, Inc. 9,560,206
* 461,100 Take-Two Interactive Software, Inc. 5,734,931
* 191,200 VocalTec Communications Ltd. 1,625,200
------------
45,093,924
------------
UTILITIES 1.4%
* 1,093,000 Cadiz, Inc. 11,613,125
------------
11,613,125
------------
TOTAL STOCKS (Cost $579,020,370) 618,786,692
------------
The accompanying notes are an integral part of these financial statements.
FREMONT MUTUAL FUNDS 43
<PAGE>
FREMONT U.S. MICRO-CAP FUND
October 31, 2000
SCHEDULE OF INVESTMENTS IN SECURITIES AND NET ASSETS
Value
Face Amount Security Description (Note 1)
--------------------------------------------------------------------------------
SHORT-TERM INVESTMENTS 23.8%
$ 10,000,000 Associates Corp. of North America,
6.620% (a), 11/01/00 $ 10,000,000
36,076,405 Repurchase Agreement, State
Street Bank and Trust Co.,
5.980%, 11/01/00
(Maturity Value $36,082,398)
(Cost $36,076,405) Collateral:
FHLMC, 7.050%, 09/19/03 36,076,405
50,000,000 Repurchase Agreement, State
Street Bank and Trust Co.,
5.980%, 11/01/00
(Maturity Value $50,008,306)
(Cost $50,000,000) Collateral:
FNMA, 6.000%, 11/15/01 50,000,000
50,000,000 Repurchase Agreement, State
Street Bank and Trust Co.,
5.980%, 11/01/00
(Maturity Value $50,008,306)
(Cost $50,000,000) Collateral:
FNMA, 6.030%, 08/06/01 50,000,000
50,000,000 Repurchase Agreement, State
Street Bank and Trust Co.,
5.980%, 11/01/00
(Maturity Value $50,008,306)
(Cost $50,000,000) Collateral:
FNMA, 6.100%, 08/10/01 50,000,000
TOTAL SHORT-TERM INVESTMENTS
(Cost $196,076,405) 196,076,405
------------
TOTAL INVESTMENTS (Cost $775,096,775), 98.7% 814,863,097
------------
OTHER ASSETS AND LIABILITIES, NET, 1.3% 11,109,407
------------
NET ASSETS, 100.0% $825,972,504
============
The accompanying notes are an integral part of these financial statements.
44 FREMONT MUTUAL FUNDS
<PAGE>
FREMONT U.S. SMALL CAP FUND
October 31, 2000
SCHEDULE OF INVESTMENTS IN SECURITIES AND NET ASSETS
Shares/ Value
Face Amount Security Description (Note 1)
--------------------------------------------------------------------------------
STOCKS 76.1%
BUSINESS EQUIPMENT & SERVICES 16.1%
* 9,400 Corporate Executive Board Co. $ 433,575
* 43,200 CoStar Group, Inc. 1,350,000
* 28,000 CSG Systems International, Inc. 1,300,250
* 68,800 International Speedway Corp. (Class A) 2,210,200
* 90,400 Liberty Satellite & Technology, Inc. 452,000
* 69,900 Sanchez Computer Associates, Inc. 1,122,769
* 69,600 Speedway Motorsports, Inc. 1,213,650
* 127,600 Teletech Holdings, Inc. 3,540,900
------------
11,623,344
------------
CONSUMER NON-DURABLES 0.8%
* 74,200 Guess?, Inc. 551,862
------------
551,862
------------
CONSUMER SERVICES 2.9%
* 50,900 ACTV, Inc. 501,047
* 46,950 American Classic Voyages Co. 648,497
* 42,100 Crown Media Holdings, Inc. (Class A) 584,137
* 17,000 Internet.com Corp. 353,812
------------
2,087,493
------------
ENERGY 1.1%
* 41,300 Syntroleum Corp. 805,350
------------
805,350
------------
HEALTH CARE 20.6%
* 70,700 Advance Paradigm, Inc. 3,455,462
* 65,300 ArthroCare Corp. 1,481,494
* 35,600 Cerner Corp. 2,204,975
* 73,100 Gene Logic, Inc. 1,594,494
* 36,100 Invitrogen Corp. 2,745,856
* 71,200 Oxford Health Plans, Inc. 2,403,000
* 41,500 Sunrise Assisted Living, Inc. 970,062
------------
14,855,343
------------
RETAIL 7.5%
* 29,400 Abercrombie & Fitch Co. (Class A) 692,737
* 10,700 American Eagle Outfitters, Inc. 368,481
* 24,200 AnnTaylor Stores Corp. 726,000
32,100 CBRL Group, Inc. 573,788
* 29,400 Jack in the Box, Inc. 720,300
* 4,500 Quicksilver, Inc. 86,063
* 11,500 ValueVision International, Inc. 232,875
* 141,900 Venator Group, Inc. 2,004,338
------------
5,404,582
------------
TECHNOLOGY (COMPONENTS) 2.9%
* 19,950 Anaren Microwave, Inc. 2,074,800
------------
2,074,800
------------
TECHNOLOGY (EQUIPMENT) 6.6%
* 44,100 Cabletron Systems, Inc. 1,196,213
* 42,000 Netopia, Inc. 456,750
* 15,300 PRI Automation, Inc. 346,163
* 53,900 Varian Semiconductor
Equipment Associates, Inc. 1,239,700
* 30,700 Zygo Corp. 1,519,650
------------
4,758,476
------------
TECHNOLOGY (SOFTWARE) 16.8%
* 49,750 Critical Path, Inc. $ 2,415,984
* 25,500 Docent, Inc. 656,625
* 58,100 New Era of Networks, Inc. 904,181
* 20,200 Onyx Software Corp. 320,675
* 45,300 PC-Tel, Inc. 781,425
* 40,100 Peregrine Systems, Inc. 962,400
* 25,500 Primus Knowledge Solutions, Inc. 207,188
* 78,900 Puma Technology, Inc. 1,070,081
* 72,800 ServiceWare Technologies, Inc. 427,700
* 67,000 SmartForce Public Ltd. Co. 3,371,984
* 7,800 Take-Two Interactive Software, Inc. 97,013
* 4,400 VeriSign, Inc. 580,800
* 17,300 Websense, Inc. 311,400
------------
12,107,456
------------
UTILITIES 0.8%
* 38,500 Alamosa PCS Holdings, Inc. 584,719
------------
584,719
------------
TOTAL STOCKS (Cost $51,691,015) 54,853,425
------------
SHORT-TERM INVESTMENT 22.4%
$ 16,108,121 Repurchase Agreement, State
Street Bank and Trust Co.,
5.980%, 11/01/00
(Maturity Value $16,110,797)
(Cost $16,108,121) Collateral:
FNMA, 6.100%, 08/10/01 16,108,121
------------
TOTAL SHORT-TERM INVESTMENT (Cost $16,108,121) 16,108,121
------------
TOTAL INVESTMENTS (Cost $67,799,136), 98.5% 70,961,546
------------
OTHER ASSETS AND LIABILITIES, NET, 1.5% 1,105,262
------------
NET ASSETS, 100.0% $ 72,066,808
============
The accompanying notes are an integral part of these financial statements.
FREMONT MUTUAL FUNDS 45
<PAGE>
FREMONT GROWTH FUND
October 31, 2000
SCHEDULE OF INVESTMENTS IN SECURITIES AND NET ASSETS
Value
Shares Security Description (Note 1)
--------------------------------------------------------------------------------
STOCKS 94.8%
BUSINESS EQUIPMENT & SERVICES 3.2%
* 9,966 Agilent Technologies, Inc. $ 461,550
* 33,000 America Online, Inc. 1,664,190
9,000 Automatic Data Processing, Inc. 587,813
11,000 Paychex, Inc. 623,562
* 10,000 Yahoo!, Inc. 586,250
------------
3,923,365
------------
CAPITAL GOODS 5.5%
17,000 Boeing Co. 1,152,812
80,400 General Electric Co. 4,406,925
15,500 Honeywell International, Inc. 834,094
48,000 Worthington Industries, Inc. 459,000
------------
6,852,831
------------
CONSUMER DURABLES 0.9%
43,436 Ford Motor Co. 1,134,765
------------
1,134,765
------------
CONSUMER NON-DURABLES 5.8%
20,800 Anheuser-Busch Cos., Inc. 951,600
14,800 Coca-Cola Co. 893,550
6,000 Eastman Kodak Co. 269,250
33,000 Pepsi Bottling Group, Inc. 1,142,625
28,100 Pepsico, Inc. 1,361,094
49,300 Philip Morris Cos., Inc. 1,805,612
10,400 Procter & Gamble Co. 742,950
------------
7,166,681
------------
CONSUMER SERVICES 0.9%
30,000 The Walt Disney Co. 1,074,375
------------
1,074,375
------------
ENERGY 6.4%
15,500 Apache Corp. 857,344
64,000 Exxon Mobil Corp. 5,708,000
51,000 USX-Marathon Group 1,386,562
------------
7,951,906
------------
FINANCIAL SERVICES (BANKS) 5.1%
50,700 Bank Of America Corp. 2,436,769
17,000 Bank One Corp. 620,500
10,000 Capital One Financial Corp. 631,250
25,300 MBNA Corp. 950,331
5,500 PNC Bank Corp. 367,812
30,000 Washington Mutual, Inc. 1,320,000
------------
6,326,662
------------
FINANCIAL SERVICES (OTHER) 11.2%
18,875 American International Group, Inc. 1,849,750
* 13,000 Bear Stearns Co., Inc. 788,125
60,933 Citigroup, Inc. 3,206,599
23,200 Federal Home Loan Mortgage Corp. 1,392,000
14,300 Federal National Mortgage Association 1,101,100
45,600 FleetBoston Financial Corp. 1,732,800
13,000 GATX Corp. 546,812
17,000 Household International, Inc. 855,312
8,000 Loews Corp. 727,500
10,400 Morgan Stanley Dean Witter & Co. 835,250
FINANCIAL SERVICES (OTHER) (Cont.)
8,000 Providian Financial Corp. $ 832,000
------------
13,867,248
------------
HEALTH CARE 11.1%
18,800 Abbott Laboratories 992,875
13,000 American Home Products Corp. 825,500
* 11,000 Amgen, Inc. 637,312
23,700 Bristol-Myers Squibb Co. 1,444,219
5,000 Cardinal Health, Inc. 473,750
15,600 Johnson & Johnson 1,437,150
11,200 Lilly (Eli) & Co. 1,001,000
11,000 Medtronic, Inc. 597,437
26,000 Merck & Co. 2,338,375
59,325 Pfizer, Inc. 2,562,098
12,000 Pharmacia Corp. 660,000
15,500 Schering-Plough Corp. 801,156
------------
13,770,872
------------
RAW MATERIALS 1.5%
22,900 Dow Chemical Co. 701,312
25,000 Weyerhaeuser Co. 1,173,437
------------
1,874,749
------------
RETAIL 5.8%
* 12,000 Best Buy Co., Inc. 602,250
21,500 Gap, Inc. 554,969
28,750 Home Depot, Inc. 1,236,250
16,100 Lowe's Cos., Inc. 735,569
* 17,100 Papa John's Intl., Inc. 429,638
* 13,000 Safeway, Inc. 710,938
* 40,000 Staples, Inc. 570,000
17,400 Target Corp. 480,675
41,700 Wal-Mart Stores, Inc. 1,892,138
------------
7,212,427
------------
TECHNOLOGY (COMPONENTS) 11.9%
* 7,000 Analog Devices, Inc. 455,000
* 4,000 Broadcom Corp. 889,500
* 68,000 Cisco Systems, Inc. 3,663,500
* 21,600 EMC Corp. 1,923,750
66,000 Intel Corp. 2,970,000
* 12,000 JDS Uniphase Corp. 976,500
32,600 Lucent Technologies, Inc. 759,988
* 11,000 Micron Technology, Inc. 382,250
* 7,000 Network Appliance, Inc. 833,000
* 11,500 Qualcomm, Inc. 748,758
* 14,000 Solectron Corp. 616,000
* 7,000 Xilinx, Inc. 507,063
------------
14,725,309
------------
TECHNOLOGY (EQUIPMENT) 8.5%
* 13,000 Applied Materials, Inc. 690,625
20,000 Compaq Computer Corp. 608,200
11,000 Corning, Inc. 841,500
* 32,800 Dell Computer Corp. 967,600
20,800 Hewlett-Packard Co. 965,900
15,700 International Business Machines Corp. 1,546,450
31,500 Motorola, Inc. 785,531
* 17,300 Sun Microsystems, Inc. 1,918,138
The accompanying notes are an integral part of these financial statements.
46 FREMONT MUTUAL FUNDS
<PAGE>
FREMONT GROWTH FUND
October 31, 2000
SCHEDULE OF INVESTMENTS IN SECURITIES AND NET ASSETS
Shares/ Value
Face Amount Security Description (Note 1)
--------------------------------------------------------------------------------
TECHNOLOGY (EQUIPMENT) (Cont.)
* 11,000 Tellabs, Inc. $ 549,313
22,000 Texas Instruments, Inc. 1,079,375
* 7,800 United Technologies Corp. 544,538
------------
10,497,170
------------
TECHNOLOGY (SOFTWARE) 6.4%
15,600 Computer Associates International, Inc. 497,250
* 51,700 Microsoft Corp. 3,560,838
* 62,600 Oracle Corp. 2,065,800
* 6,000 Siebel Systems, Inc. 629,625
* 8,000 VERITAS Software Corp. 1,128,125
------------
7,881,638
------------
TRANSPORTATION 0.1%
5,000 UAL Corp. 189,688
------------
189,688
------------
UTILITIES 10.5%
* 17,800 AES Corp. 1,005,700
56,300 AT&T Corp. 1,305,456
24,100 BellSouth Corp. 1,164,331
* 14,000 Calpine Corp. 1,105,125
29,000 KeySpan Corp. 1,020,438
* 21,000 Qwest Communications International, Inc. 1,021,125
33,500 SBC Communications, Inc. 1,932,531
43,000 TXU Corp. 1,593,688
28,700 Verizon Communications 1,659,219
* 53,350 WorldCom, Inc. 1,267,063
------------
13,074,676
------------
TOTAL STOCKS (Cost $88,535,548) 117,524,362
------------
SHORT-TERM INVESTMENTS 4.3%
$ 4,800,000 Associates Corp. of North America,
6.620% (a), 11/1/00 4,800,000
315,000 U.S. Treasury Bill,
5.940%, 12/21/00+ 312,401
277,378 Repurchase Agreement, State
Street Bank and Trust Co.,
5.980%, 11/01/00
(Maturity Value $277,424)
(Cost $277,378) Collateral:
FNMA, 6.350%, 06/22/01 277,378
TOTAL SHORT-TERM INVESTMENTS (Cost $5,389,779) 5,389,779
------------
TOTAL INVESTMENTS (Cost $93,925,327), 99.1% 122,914,141
------------
OTHER ASSETS AND LIABILITIES, NET, 0.9% 1,115,454
------------
NET ASSETS, 100.0% $124,029,595
============
The accompanying notes are an integral part of these financial statements.
FREMONT MUTUAL FUNDS 47
<PAGE>
FREMONT REAL ESTATE SECURITIES FUND
October 31, 2000
SCHEDULE OF INVESTMENTS IN SECURITIES AND NET ASSETS
Value
Shares Security Description (Note 1)
--------------------------------------------------------------------------------
STOCKS 102.1%
REITs (APARTMENTS) 13.1%
34,715 Equity Residential Properties Trust $ 1,633,775
8,200 Gables Residential Trust 209,100
5,000 Home Properties of New York, Inc. 135,937
* 78,750 Wellsford Real Properties, Inc. 1,402,734
------------
3,381,546
------------
REITs (COMMUNITY CENTERS) 10.9%
14,100 Agree Realty Corp. 198,281
66,200 Burnham Pacific Properties, Inc. 359,962
50,500 Developers Diversified Realty Corp. 602,844
104,500 Malan Realty Investors, Inc. 1,134,478
37,600 Ramco-Gershenson Properties Trust 526,400
------------
2,821,965
------------
REITs (DIVERSIFIED) 6.7%
10,650 Duke-Weeks Realty Corp. 252,272
274,040 First Union Real Estate Investments 702,227
47,575 Glenborough Realty Trust, Inc. 764,173
------------
1,718,672
------------
REITs (HEALTH CARE) 0.6%
5,000 Health Care Property Investors, Inc. 146,875
------------
146,875
------------
REITs (HOTELS) 6.2%
9,870 Hospitality Properties Trust 212,822
13,000 Meristar Hospitality Corp. 248,625
57,100 RFS Hotel Investors, Inc. 735,162
55,000 Winston Hotels, Inc. 409,062
------------
1,605,671
------------
REITs (INDUSTRIAL) 3.1%
14,800 First Industrial Realty Trust, Inc. 456,950
10,000 Vornado Realty Trust 348,125
------------
805,075
------------
REITs (OFFICE) 40.5%
516,300 Banyan Strategic Realty Trust 2,807,381
58,200 Brandywine Realty Trust 1,113,075
93,300 Corporate Office Properties Trust 909,675
31,068 Equity Office Properties Trust 935,924
40,000 Highwoods Properties, Inc. 865,000
86,450 Koger Equity, Inc. 1,377,797
41,850 Mack-Cali Realty Corp. 1,135,181
34,300 Prentiss Properties Trust 870,363
30,100 Prime Group Realty Trust 447,738
------------
10,462,134
------------
REITs (OFFICE/INDUSTRIAL) 14.0%
140,200 American Industrial Properties REIT 1,734,975
27,600 Liberty Property Trust 729,675
10,350 PS Business Parks, Inc. 271,688
16,000 Spieker Properties, Inc. 886,000
------------
3,622,338
------------
REITs (REGIONAL MALLS) 6.2%
58,200 Glimcher Realty Trust $ 756,600
37,525 Simon Property Group, Inc. 837,277
------------
1,593,877
------------
REITs (SELF STORAGE) 0.8%
9,400 Public Storage, Inc. 211,500
------------
211,500
------------
TOTAL STOCKS (Cost $27,288,901) 26,369,653
------------
SHORT-TERM INVESTMENT 2.7%
$ 699,423 Repurchase Agreement, State
Street Bank and Trust Co.,
5.980%, 11/01/00 (Maturity
Value $699,539) (Cost $699,423)
Collateral: FNMA, 6.350%,
06/22/01 699,423
------------
TOTAL SHORT-TERM INVESTMENT (Cost $699,423) 699,423
------------
TOTAL INVESTMENTS (Cost $27,988,324), 104.8% 27,069,076
------------
OTHER ASSETS AND LIABILITIES, NET, (4.8)% (1,239,738)
------------
NET ASSETS, 100.0% $ 25,829,338
============
The accompanying notes are an integral part of these financial statements.
48 FREMONT MUTUAL FUNDS
<PAGE>
FREMONT BOND FUND
October 31, 2000
SCHEDULE OF INVESTMENTS IN SECURITIES AND NET ASSETS
<TABLE>
<CAPTION>
Interest Maturity Value
Face Amount Issuer Rate Date (Note 1)
------------------------------------------------------------------------------------------------------------------------
BONDS 145.7%
COLLATERALIZED MORTGAGE OBLIGATIONS 32.0%
<S> <C> <C> <C> <C>
$ 724,128 CHASE 1993-H 2A4 ................................................ 7.000% 07/25/24 $ 719,522
1,460,919 CHASE 1995-A A .................................................. 6.639% 04/25/25 1,475,721
500,000 CHASE 1998-S6 A17 ............................................... 6.750% 10/25/28 475,217
689,080 FHARM 787239 .................................................... 7.813% 07/01/30 694,439
2,885,819 FHR 2210 F ...................................................... 6.970% 07/15/28 2,852,863
5,062,695 FHR 2247 Z ...................................................... 7.500% 08/15/30 4,890,281
15,000,000 FNR 1992-131 KA ................................................. 8.000% 01/25/22 15,182,730
200,000 FNR 1993-11 J ................................................... 7.500% 02/25/08 200,778
9,293,392 FNR G93-21 Z .................................................... 7.200% 05/25/23 8,958,516
5,301,000 FSPC T-11 A5 .................................................... 6.500% 01/25/15 5,234,313
8,000,000 FSPC T-11 A6 .................................................... 6.500% 09/25/18 7,847,840
512,372 MSM 40 8 ........................................................ 7.000% 07/20/21 506,596
500,000 NFLC 1999-SL A4 ................................................. 6.654% 02/10/06 493,349
1,978,265 NSCOR 1999-25 A4 ................................................ 6.500% 10/25/29 1,804,910
4,900,000 PNCMS 1999-4 1A8 ................................................ 6.200% 06/25/29 4,777,843
10,000,000 RFMSI 1997-S17 A5 ............................................... 7.000% 11/25/27 9,657,460
4,475,884 RMT 2000-A A8 ................................................... 6.500% 04/19/29 4,425,531
900,000 SAMI 2000-2-A1 FR COFI+200 ...................................... 7.398% 01/28/30 900,810
1,618,695 SASI 1993-2 A9 .................................................. 6.200% 07/25/08 1,594,917
------------
72,693,636
------------
FIXED RATE AND ADJUSTABLE RATE MORTGAGE SECURITIES 17.7%
5,000,000 BA Mortgage Securities, Inc. .................................... 6.600% 08/25/28 4,881,800
307,267 FHLMC ........................................................... 6.500% 01/01/26 296,608
90,858 FHLMC ........................................................... 6.500% 03/01/26 87,621
363,911 FHLMC ........................................................... 6.500% 04/01/26 350,945
189,023 FHLMC ........................................................... 6.500% 04/01/26 182,288
109,147 FHLMC ........................................................... 6.500% 04/01/26 105,258
127,772 FHLMC ........................................................... 6.500% 05/01/26 123,220
588,873 FHLMC ........................................................... 7.000% 11/15/20 583,809
167,190 FHLMC ........................................................... 8.250% 08/01/17 171,176
3,641,510 FNMA ............................................................ 6.500% 05/18/23 3,601,708
234,201 FNMA ARM ........................................................ 7.598% 11/01/23 237,824
3,516,866 GNMA ............................................................ 6.000% 01/15/24 3,314,098
1,413,330 GNMA ............................................................ 6.000% 01/15/24 1,331,843
30,667 GNMA ............................................................ 6.500% 02/15/24 29,608
649,085 GNMA ............................................................ 6.500% 03/15/24 626,671
28,847 GNMA ............................................................ 6.500% 06/15/24 27,851
89,043 GNMA ............................................................ 6.500% 09/15/27 85,969
120,231 GNMA ............................................................ 6.500% 06/15/28 16,080
8,000,000 GNMA ............................................................ 6.500% 06/20/28 7,357,440
28,742 GNMA ............................................................ 6.500% 07/15/28 27,750
1,042,106 GNMA ............................................................ 6.500% 07/15/28 1,006,121
781,676 GNMA ............................................................ 6.500% 08/15/28 754,684
34,327 GNMA ............................................................ 6.500% 08/15/28 33,142
55,082 GNMA ............................................................ 6.500% 09/15/28 53,180
498,821 GNMA ............................................................ 6.500% 09/15/28 481,597
61,306 GNMA ............................................................ 6.500% 09/15/28 59,189
126,872 GNMA ............................................................ 6.500% 09/15/28 122,491
910,141 GNMA ............................................................ 6.500% 10/15/28 878,713
62,661 GNMA ............................................................ 6.500% 11/15/28 60,497
480,755 GNMA ............................................................ 6.500% 11/15/28 464,154
138,512 GNMA ............................................................ 6.500% 01/15/29 133,729
859,237 GNMA ............................................................ 6.500% 01/15/29 829,567
35,123 GNMA ............................................................ 6.500% 03/15/29 33,910
139,582 GNMA ............................................................ 6.500% 03/15/29 134,762
848,397 GNMA ............................................................ 6.500% 03/15/29 819,101
</TABLE>
The accompanying notes are an integral part of these financial statements.
FREMONT MUTUAL FUNDS 49
<PAGE>
FREMONT BOND FUND
October 31, 2000
SCHEDULE OF INVESTMENTS IN SECURITIES AND NET ASSETS
<TABLE>
<CAPTION>
Interest Maturity Value
Face Amount Issuer Rate Date (Note 1)
------------------------------------------------------------------------------------------------------------------------
FIXED RATE AND ADJUSTABLE RATE MORTGAGE SECURITIES (Cont.)
<S> <C> <C> <C> <C>
$ 805,826 GNMA ............................................................ 6.500% 04/15/29 $ 778,000
67,524 GNMA ............................................................ 6.500% 05/15/29 65,192
97,251 GNMA ............................................................ 6.500% 06/15/29 93,893
1,467,145 GNMA ............................................................ 6.500% 06/15/29 1,416,483
45,256 GNMA ............................................................ 6.500% 11/15/29 43,693
84,821 GNMA ............................................................ 6.500% 12/15/29 81,892
888,967 GNMA II ARM ..................................................... 6.750% 08/20/25 898,683
171,554 GNMA II ARM ..................................................... 7.125% 11/20/24 173,027
563,123 GNMA II ARM ..................................................... 7.125% 10/20/25 567,870
866,852 GNMA II ARM ..................................................... 7.125% 11/20/26 874,143
5,098,224 GNMA II ARM ..................................................... 7.125% 10/20/27 5,140,692
124,633 GNMA II ARM ..................................................... 7.375% 04/20/21 125,606
615,964 GNMA II ARM ..................................................... 7.375% 03/20/24 621,636
------------
40,285,214
------------
FOREIGN CORPORATE BONDS 6.7%
(Euro)
2,400,000 Lloyds TSB Cap 1 Call ........................................... 7.375% 02/07/49 2,063,786
5,000,000 Tecnost International NV ........................................ 6.665% 06/23/04 4,322,641
$ 800,000 Abbey National Capital Trust .................................... 8.963% 12/29/49 796,934
700,000 Deutsche Telekom Int Fin ........................................ 7.750% 06/15/05 711,912
3,000,000 Nacional Financiera SNC ......................................... 10.563% 12/01/00 2,988,000
1,600,000 Royal Bank Of Scotland .......................................... 9.118% 03/31/10 1,674,430
2,800,000 Vodafone Airtouch PLC ........................................... 6.860% 12/19/01 2,802,982
------------
15,360,685
------------
FOREIGN GOVERNMENT BONDS 2.2%
(Euro)
570,000 Deutsche Bundesrepublik ......................................... 6.500% 07/04/27 537,857
240,000 Deutschland Republic ............................................ 6.250% 01/04/30 222,758
130,000 Federal Republic of Germany ..................................... 6.250% 01/04/24 118,310
$1,980,000 Republic of Brazil .............................................. 6.938% 04/15/06 1,804,431
615,000 Republic of Brazil .............................................. 7.875% 01/01/01 614,330
1,300,000 Republic of Brazil .............................................. 12.250% 03/06/30 1,131,650
500,000 United Mexican States ........................................... 8.500% 02/01/06 490,500
------------
4,919,836
------------
MORTGAGE BACKED OBLIGATIONS 35.1%
500,000 Allete .......................................................... 7.620% 10/20/03 500,000
11,300,000 FHLMC ........................................................... 7.000% 12/13/30 11,088,125
1,000,000 FHLMC TBA ....................................................... 6.000% 12/13/30 939,062
3,000,000 FNMA ............................................................ 7.000% 11/13/30 2,943,750
2,000,000 FNMA ............................................................ 7.500% 11/13/30 1,996,880
5,000,000 FNMA TBA ........................................................ 6.000% 11/13/30 4,693,750
2,000,000 GNMA ............................................................ 7.500% 11/20/30 2,008,125
16,800,000 GNMA I TBA ...................................................... 6.500% 11/20/30 16,217,208
31,300,000 GNMA I TBA ...................................................... 7.000% 11/20/30 30,850,219
5,400,000 GNMA II ......................................................... 6.500% 11/23/30 5,197,500
3,500,000 GNMA II ......................................................... 7.000% 11/20/30 3,437,656
------------
79,872,275
------------
MUNICIPAL BONDS 2.5%
2,200,000 Massachusetts State Water Resources Authority ................... 4.750% 08/01/37 1,851,696
2,500,000 Washington DC Convention Center Authority Dedicated Tax Rev ..... 4.690% 10/01/28 1,807,625
2,000,000 West Virginia St ................................................ 5.750% 06/01/25 2,030,780
------------
5,690,101
------------
U.S. CORPORATE BONDS 32.2%
(Euro)
2,600,000 KBC Bank Funding Trust .......................................... 6.875% 06/30/49 2,077,562
$5,000,000 Associates Corp., NA ............................................ 5.750% 11/01/03 4,826,000
500,000 Bear Stearns Co., Inc. .......................................... 7.010% 03/28/03 499,477
</TABLE>
The accompanying notes are an integral part of these financial statements.
50 FREMONT MUTUAL FUNDS
<PAGE>
FREMONT BOND FUND
October 31, 2000
SCHEDULE OF INVESTMENTS IN SECURITIES AND NET ASSETS
<TABLE>
<CAPTION>
Interest Maturity Value
Face Amount Issuer Rate Date (Note 1)
------------------------------------------------------------------------------------------------------------------------
CORPORATE BONDS (Cont.)
<S> <C> <C> <C> <C>
$1,100,000 Beckman Instruments, Inc. ....................................... 7.100% 03/04/03 $ 1,067,814
3,000,000 Circuit City Credit Card Master Trust ........................... 6.850% 02/15/06 3,005,400
1,000,000 Citicorp, FRN ................................................... 6.771% 08/13/02 1,004,240
2,000,000 Citicorp, FRN ................................................... 6.781% 11/12/02 2,009,860
684,000 Delta Air Lines, Inc. (Sinking Fund Bond) ....................... 9.450% 02/14/06 710,861
1,370,000 Delta Air Lines, Inc. (Sinking Fund Bond) ....................... 9.450% 02/26/06 1,424,279
3,500,000 Ford Motor Credit Co. ........................................... 6.838% 11/16/01 3,499,009
1,800,000 Ford Motor Credit Corp. ......................................... 6.950% 06/20/03 1,794,940
10,000,000 General Motors Acceptance Corp., FRN ............................ 5.750% 11/10/03 9,651,500
2,500,000 General Motors Acceptance Corp., FRN ............................ 6.790% 08/18/03 2,491,135
1,500,000 Gold Eagle Capital Ltd. ......................................... 12.134% 04/15/01 1,500,000
1,500,000 Goldman Sachs Group, FRN ........................................ 6.920% 02/22/02 1,502,023
2,000,000 Goldman Sachs Group, FRN ........................................ 7.001% 01/17/03 2,000,618
5,000,000 Household Finance Corp. ......................................... 6.960% 06/17/05 4,969,165
800,000 Lehman Brothers Holdings, Inc., MTN ............................. 6.375% 05/07/02 792,192
1,100,000 Lehman Brothers Holdings, Inc., MTN ............................. 7.414% 05/07/02 1,105,643
1,865,000 Nabisco, Inc. ................................................... 6.000% 02/15/01 1,851,460
5,000,000 Noram Energy Corp. .............................................. 6.375% 11/01/03 4,830,390
3,000,000 Popular, Inc. ................................................... 6.200% 04/30/01 2,983,560
300,000 Providian Gateway Master Trust CMO .............................. 6.900% 03/16/09 300,000
3,000,000 Sierra Pac Res .................................................. 7.410% 04/20/02 3,000,000
2,400,000 Texas Utilities ................................................. 5.940% 10/15/01 2,369,328
2,500,000 Textron Financial Corp. ......................................... 7.010% 10/26/01 2,503,782
225,000 Time Warner, Inc. ............................................... 7.975% 08/15/04 230,522
1,300,000 US Airways ...................................................... 8.020% 02/05/19 1,320,540
7,980,000 WorldCom, Inc. .................................................. 6.125% 08/15/01 7,900,998
------------
73,222,298
------------
U.S. GOVERNMENT & AGENCIES 17.3%
600,000 Small Business Administration ................................... 7.640% 08/01/10 611,969
500,000 U.S. Treasury Bond .............................................. 6.500% 11/15/26 534,455
3,700,000 U.S. Treasury Bond .............................................. 8.000% 11/15/21 4,572,978
600,000 U.S. Treasury Bond .............................................. 8.125% 05/15/21 748,404
1,100,000 U.S. Treasury Bond .............................................. 8.750% 08/15/20 1,445,301
600,000 U.S. Treasury Bond .............................................. 9.125% 05/15/18 800,346
2,000,000 U.S. Treasury Bond .............................................. 11.250% 02/15/15 2,998,740
218,003 U.S. Treasury Inflationary Protection ........................... 3.375% 01/15/07 212,348
4,205,422 U.S. Treasury Inflationary Protection ........................... 3.625% 07/15/02 4,213,287
1,389,657 U.S. Treasury Inflationary Protection ........................... 3.625% 01/15/08 1,367,510
640,646 U.S. Treasury Inflationary Protection ........................... 3.625% 04/15/28 615,417
2,316,664 U.S. Treasury Inflationary Protection ........................... 3.875% 01/15/09 2,317,387
7,456,562 U.S. Treasury Inflationary Protection ........................... 3.875% 04/15/29 7,484,524
300,000 U.S. Treasury Inflationary Protection ........................... 5.500% 08/15/28 293,625
2,700,000 U.S. Treasury Note .............................................. 6.000% 02/15/26 2,708,019
1,400,000 U.S. Treasury Strip ............................................. 0.000% 02/15/19 471,533
27,900,000 U.S. Treasury Strip ............................................. 0.000% 11/15/21 7,978,256
------------
39,374,099
------------
TOTAL BONDS (Cost $336,141,060) 331,418,144
------------
</TABLE>
The accompanying notes are an integral part of these financial statements.
FREMONT MUTUAL FUNDS 51
<PAGE>
FREMONT BOND FUND
October 31, 2000
SCHEDULE OF INVESTMENTS IN SECURITIES AND NET ASSETS
<TABLE>
<CAPTION>
Interest Maturity Value
Face Amount Issuer Rate Date (Note 1)
------------------------------------------------------------------------------------------------------------------------
SHORT-TERM INVESTMENTS 1.0%
<S> <C> <C> <C> <C>
$ 400,000 DaimlerChrysler North America Holding ........................... 6.520%(a) 01/31/01 $ 393,408
100,000 General Electric Capital Corp. .................................. 6.550%(a) 01/18/01 98,581
1,529,982 Repurchase Agreement, State Street Bank and Trust Co., 5.980%,
11/01/00 (Maturity Value $1,530,236) (Cost $1,529,982) Collateral:
FNMA, 5.800%, 03/15/02, FHLB 5.700%, 08/02/02 ........................................ 1,529,982
135,000 U.S. Treasury Bill+ ............................................. 6.020% 02/01/01 132,923
------------
TOTAL SHORT-TERM INVESTMENTS (Cost $2,154,894) 2,154,894
------------
TOTAL INVESTMENTS (Cost $338,295,954), 146.7% 333,573,038
------------
OTHER ASSETS AND LIABILITIES, NET, (46.7)% (106,122,640)
------------
NET ASSETS, 100.0% $227,450,398
============
</TABLE>
The accompanying notes are an integral part of these financial statements.
52 FREMONT MUTUAL FUNDS
<PAGE>
FREMONT MONEY MARKET FUND
October 31, 2000
SCHEDULE OF INVESTMENTS IN SECURITIES AND NET ASSETS
<TABLE>
<CAPTION>
Interest Maturity Value
Face Amount Issuer Rate Date (Note 1)
------------------------------------------------------------------------------------------------------------------------
COMMERCIAL PAPER 90.9%
CONSUMER DURABLES 9.1%
<S> <C> <C> <C> <C>
$10,000,000 American Honda Finance .......................................... 6.490% 11/08/00 $ 9,987,381
10,000,000 BMW US Capital Corp. ............................................ 6.450% 12/26/00 9,901,458
5,000,000 DaimlerChrysler North America Holding ........................... 6.500% 11/29/00 4,974,722
5,000,000 Ford Motor Credit Corp. ......................................... 6.460% 11/27/00 4,976,672
5,000,000 Ford Motor Credit Corp. ......................................... 6.460% 12/06/00 4,968,597
5,000,000 General Motors Acceptance Corp. ................................. 6.460% 11/27/00 4,976,672
10,000,000 General Motors Acceptance Corp. ................................. 6.490% 11/03/00 9,996,394
10,000,000 General Motors Acceptance Corp. ................................. 6.520% 01/26/01 9,844,245
5,000,000 Hitachi America Capital Corp. ................................... 6.500% 11/16/00 4,986,458
------------
64,612,599
------------
CONSUMER NON-DURABLES 9.9%
10,000,000 Brown-Forman Corp.** ............................................ 6.480% 12/19/00 9,913,600
10,000,000 Diageo Capital PLC** ............................................ 6.490% 01/31/01 9,835,947
10,000,000 Diageo Capital PLC** ............................................ 6.510% 01/10/01 9,873,417
10,000,000 Gannett Co., Inc.** ............................................. 6.480% 11/07/00 9,989,200
10,000,000 Golden Peanut Co. ............................................... 6.460% 12/28/00 9,897,717
5,500,000 Golden Peanut Co. ............................................... 6.470% 12/14/00 5,457,496
5,000,000 Golden Peanut Co. ............................................... 6.480% 12/07/00 4,967,600
10,000,000 Heinz (H.J.) & Co. .............................................. 6.470% 02/14/01 9,811,292
------------
69,746,269
------------
CONSUMER SERVICES 2.8%
10,000,000 British Telecom ................................................. 6.500% 11/20/00 9,965,694
10,000,000 British Telecom ................................................. 6.530% 11/21/00 9,963,722
------------
19,929,416
------------
FINANCIAL SERVICES (BANKS) 11.1%
10,000,000 Banque Caisse D'Epargne De L'Etat ............................... 6.480% 02/12/01 9,814,600
10,000,000 Banque Caisse D'Epargne De L'Etat ............................... 6.530% 01/04/01 9,883,911
5,000,000 Banque Caisse D'Epargne De L'Etat ............................... 6.540% 01/16/01 4,930,967
10,000,000 Deutsche Bank Financial ......................................... 6.550% 04/16/01 9,697,972
10,000,000 FCE Bank PLC .................................................... 6.470% 12/13/00 9,924,517
5,000,000 FCE Bank PLC .................................................... 6.480% 12/06/00 4,968,500
10,000,000 Halifax PLC ..................................................... 6.420% 04/09/01 9,716,450
10,000,000 Halifax PLC ..................................................... 6.450% 03/02/01 9,783,208
5,000,000 Halifax PLC ..................................................... 6.460% 03/01/01 4,892,333
5,000,000 Svenska Handelsbanken ........................................... 6.520% 01/16/01 4,931,178
------------
78,543,636
------------
FINANCIAL SERVICES (OTHER) 32.8%
10,000,000 ABB Treasury Center** ........................................... 6.470% 12/11/00 9,928,111
5,000,000 AIG Credit Corp. ................................................ 6.450% 11/15/00 4,987,458
10,000,000 AIG Funding, Inc. ............................................... 6.490% 02/01/01 9,834,144
5,000,000 Allianz of America Finance Corp.** .............................. 6.480% 11/09/00 4,992,800
5,272,000 Allianz of America Finance Corp.** .............................. 6.510% 12/14/00 5,231,006
10,000,000 Allianz of America Finance Corp.** .............................. 6.550% 01/11/01 9,870,819
10,000,000 American Express Credit ......................................... 6.480% 11/06/00 9,991,000
10,000,000 American General Finance ........................................ 6.470% 12/15/00 9,920,922
10,000,000 Associates Corp. of North America ............................... 6.520% 01/18/01 9,858,733
4,300,000 Associates Corp. of North America ............................... 6.620% 11/01/00 4,300,000
10,000,000 Associates First Capital Corp. .................................. 6.500% 02/06/01 9,824,861
10,000,000 C.I.T. Group Holdings, Inc. ..................................... 6.470% 12/04/00 9,940,692
10,000,000 C.I.T. Group Holdings, Inc. ..................................... 6.500% 02/08/01 9,821,250
10,000,000 Credit Suisse First Boston ...................................... 6.500% 02/02/01 9,832,083
10,000,000 Credit Suisse First Boston ...................................... 6.500% 02/05/01 9,826,667
10,000,000 Dexia CLF Finance Co.** ......................................... 6.450% 12/21/00 9,910,417
</TABLE>
The accompanying notes are an integral part of these financial statements.
FREMONT MUTUAL FUNDS 53
<PAGE>
FREMONT MONEY MARKET FUND
October 31, 2000
SCHEDULE OF INVESTMENTS IN SECURITIES AND NET ASSETS
<TABLE>
<CAPTION>
Interest Maturity Value
Face Amount Issuer Rate Date (Note 1)
------------------------------------------------------------------------------------------------------------------------
FINANCIAL SERVICES (OTHER) (Cont.)
<S> <C> <C> <C> <C>
$5,000,000 Dexia CLF Finance Co.** ......................................... 6.460% 12/20/00 $ 4,956,036
10,000,000 Dexia CLF Finance Co.** ......................................... 6.470% 12/20/00 9,911,936
10,000,000 General Electric Capital Corp. .................................. 6.510% 01/29/01 9,839,058
10,000,000 General Electric Capital Corp. .................................. 6.530% 01/09/01 9,874,842
5,000,000 Goldman Sachs Group, LP. ........................................ 6.490% 11/13/00 4,989,183
10,000,000 Merrill Lynch & Co., Inc. ....................................... 6.530% 01/17/01 9,860,331
10,000,000 Prudential Funding Corp. ........................................ 6.520% 01/09/01 9,875,033
10,000,000 Solvay Finance** ................................................ 6.530% 02/07/01 9,822,239
10,000,000 Swiss Re Financial Products** ................................... 6.480% 12/05/00 9,938,800
5,000,000 Swiss Re Financial Products** ................................... 6.480% 12/08/00 9,933,400
5,000,000 Swiss Re Financial Products** ................................... 6.480% 12/12/00 4,963,100
------------
232,034,921
------------
HEALTH CARE 1.4%
10,000,000 Queen's Health Systems** ........................................ 6.500% 11/17/00 9,971,111
------------
9,971,111
------------
RAW MATERIALS 3.5%
10,000,000 Great Lakes Chemical Corp.** .................................... 6.500% 11/30/00 9,947,639
5,000,000 Great Lakes Chemical Corp.** .................................... 6.550% 01/19/01 4,928,132
5,000,000 Henkel Corp.** .................................................. 6.460% 03/14/01 4,880,670
5,000,000 Henkel Corp.** .................................................. 6.500% 11/01/00 5,000,000
------------
24,756,441
------------
RETAIL 4.2%
10,000,000 Target Corp. .................................................... 6.470% 12/18/00 9,915,531
10,000,000 Target Corp. .................................................... 6.470% 12/22/00 9,908,342
10,000,000 Wal-Mart Stores, Inc.** ......................................... 6.460% 11/28/00 9,951,550
------------
29,775,423
------------
UTILITIES 16.1%
5,000,000 AT&T Corp. ...................................................... 6.470% 11/01/00 5,000,000
10,000,000 AT&T Corp. ...................................................... 6.520% 01/05/01 9,882,278
10,000,000 Bellsouth Cap Fund Corp.** ...................................... 6.460% 02/16/01 9,807,994
5,000,000 Bellsouth Telecommunications, Inc. .............................. 6.460% 12/18/00 4,957,831
10,000,000 France Telecom** ................................................ 6.500% 11/02/00 9,998,194
5,000,000 France Telecom** ................................................ 6.500% 11/09/00 4,992,778
5,000,000 France Telecom** ................................................ 6.500% 11/13/00 4,989,167
5,000,000 France Telecom** ................................................ 6.500% 11/29/00 4,974,722
10,000,000 Honeywell, Inc.** ............................................... 6.470% 11/15/00 9,974,839
10,000,000 Honeywell, Inc.** ............................................... 6.490% 11/22/00 9,962,142
5,000,000 National Rural Utilities Cooperative Finance Corp. .............. 6.340% 12/07/00 4,968,300
10,000,000 National Rural Utilities Cooperative Finance Corp. .............. 6.480% 01/22/01 9,852,400
10,000,000 National Rural Utilities Cooperative Finance Corp. .............. 6.680% 01/12/01 9,866,400
10,000,000 Rio Tinto America, Inc.** ....................................... 6.500% 11/14/00 9,976,528
5,000,000 Rio Tinto America, Inc.** ....................................... 6.500% 11/16/00 4,986,458
------------
114,190,031
------------
TOTAL COMMERCIAL PAPER (Cost $643,559,847) 643,559,847
------------
</TABLE>
The accompanying notes are an integral part of these financial statements.
54 FREMONT MUTUAL FUNDS
<PAGE>
FREMONT MONEY MARKET FUND
October 31, 2000
SCHEDULE OF INVESTMENTS IN SECURITIES AND NET ASSETS
<TABLE>
<CAPTION>
Interest Maturity Value
Face Amount Security Description Rate Date (Note 1)
------------------------------------------------------------------------------------------------------------------------
OTHER SHORT-TERM INVESTMENTS 3.5%
<S> <C> <C> <C> <C>
$10,000,000 FFCB, AN ........................................................ 5.970% 12/01/00 $ 9,998,820
5,000,000 FHLB, AN ........................................................ 6.315% 01/19/01 4,998,176
5,000,000 FNMA, AN ........................................................ 6.195% 12/27/00 4,999,120
5,000,000 FHLB, AN ........................................................ 5.375% 03/01/01 4,981,252
79,328 Repurchase Agreement, State Street Bank and Trust Co., 5.980%,
11/01/00 (Maturity Value $79,341) (Cost $79,328) Collateral:
FNMA, 0.000%, 07/15/05 ............................................................... 79,328
------------
TOTAL SHORT-TERM INVESTMENTS (Cost $25,056,696) 25,056,696
------------
TOTAL INVESTMENTS (Cost $668,616,543), 94.4% 668,616,543
------------
OTHER ASSETS AND LIABILITIES, NET, 5.6% 39,375,348
------------
NET ASSETS, 100.0% $707,991,891
============
</TABLE>
The accompanying notes are an integral part of these financial statements.
FREMONT MUTUAL FUNDS 55
<PAGE>
FREMONT CALIFORNIA INTERMEDIATE TAX-FREE FUND
October 31, 2000
SCHEDULE OF INVESTMENTS IN SECURITIES AND NET ASSETS
<TABLE>
<CAPTION>
Interest Maturity Value
Face Amount Issuer Rate Date (Note 1)
----------------------------------------------------------------------------------------------------------------------------------
MUNICIPAL BONDS 96.2%
<S> <C> <C> <C> <C>
$ 615,000 Contra Costa California Water District .................................... 5.250% 10/01/16 $ 618,100
1,000,000 Big Bear Area Regional Wastewater Agency, California Revenue .............. 5.000% 04/01/10 1,035,030
200,000 California Health Facilities Financial Authority Revenue .................. 5.000% 11/15/18 194,098
235,000 California Health Facilities Financial Authority Revenue, Kaiser
Permanente Ser. B ....................................................... 5.250% 10/01/13 232,925
500,000 California State .......................................................... 5.250% 06/01/18 500,165
500,000 California State Dept. of Water Resources, Central Valley Project
Revenue Ser. M .......................................................... 4.800% 12/01/07 508,785
500,000 California State Dept. of Water Resources, Central Valley Project
Revenue Ser. T .......................................................... 5.125% 12/01/12 515,730
1,000,000 California State Public Works Board, Lease Revenue Dept. of Corrections,
Prison D ................................................................ 5.100% 06/01/06 1,031,870
1,000,000 California State Public Works Board, Lease Revenue Refunding,
Trustees of The California State University ............................. 5.600% 04/01/06 1,060,940
500,000 California State Public Works Board, Lease Revenue Various university
of California Project A ................................................. 5.400% 12/01/16 512,785
430,000 California Statewide Communities Development Authority Certificates of
Participation Kaiser Permanente ......................................... 5.300% 12/01/15 438,492
1,000,000 City and County of San Francisco International Airport, Revenue
Second Ser. Issue 1 (AMBAC Insured) ..................................... 6.100% 05/01/03 1,048,160
1,000,000 City and County of San Francisco RDA, Tax Allocation 1997 Ser. B .......... 5.700% 08/01/14 1,042,590
1,000,000 City and County of San Francisco Sewer, Revenue Refunding Ser. 1992
(AMBAC Insured) ......................................................... 5.800% 10/01/05 1,047,880
1,000,000 City of Anaheim, Public Finance Authority Revenue Bond, Anaheim
Electric Utility Projects ............................................... 5.600% 10/01/16 1,021,840
1,000,000 City of Fairfield, Water Revenue (AMBAC Insured) .......................... 5.250% 04/01/14 1,014,770
1,225,000 City of Industry, Urban Development Agency Tax Allocation
(MBIA Insured) .......................................................... 5.250% 05/01/12 1,249,022
1,500,000 City of Los Angeles, Wastewater System Revenue Ser. A (MBIA Insured) ...... 5.000% 12/01/11 1,542,390
500,000 City of Pasadena, GO Refunding Police and Jail Building 1993 .............. 5.000% 06/01/07 509,295
1,000,000 City of Riverside, Electric Revenue Refunding 1993 ........................ 5.000% 10/01/06 1,027,340
1,000,000 City of Riverside, Electric Revenue Refunding 1993 (AMBAC Insured) ........ 5.000% 10/01/13 1,004,400
1,000,000 City of San Jose, Finance Authority (Convention Center Refunding Project)
1993 Ser. C (MBIA Insured) .............................................. 5.750% 09/01/03 1,030,770
1,000,000 City of Whittier, Solid Waste Revenue Ser. A (AMBAC Insured) .............. 5.375% 08/01/14 1,022,720
1,000,000 Contra Costa Transportation Authority, Sales Tax Revenue 1991 Ser. A ...... 6.400% 03/01/01 1,008,880
1,000,000 Contra Costa Water Authority, Water Treatment Revenue Refunding 1993
Ser. A (FGIC Insured) ................................................... 5.300% 10/01/05 1,038,770
1,000,000 Contra Costa Water District, Water Revenue Ser. F (FGIC Insured) .......... 5.250% 10/01/08 1,029,500
1,500,000 East Bay CA MUD, Water System Subordinated Revenue Ser. 1998 .............. 5.250% 06/01/14 1,540,275
1,000,000 Fresno CA Sewer Revenue Ser. A-1 .......................................... 5.250% 09/01/19 1,004,810
500,000 Industry CA ............................................................... 5.500% 07/01/16 512,055
1,050,000 Kings River Consv Dist Calif Pine Flat Pwr Rev ............................ 5.125% 01/01/17 1,040,812
450,000 Larkspur School District .................................................. 5.125% 08/01/18 444,798
1,000,000 Los Angeles CA Convention & Exhibition Center Authority Lease Revenue ..... 5.200% 08/15/09 1,033,480
440,000 Los Angeles CA Municipal Improvement Corp. Lease Revenue .................. 5.000% 09/01/12 447,740
1,000,000 Los Angeles Convention & Exhibition Center Authority Lease Revenue ........ 5.375% 08/15/18 1,005,780
500,000 Los Angeles County CA Public Works Finance Authority Lease Revenue ........ 5.500% 10/01/11 528,660
1,000,000 Los Angeles County Public Works Finance Authority, Lease Revenue
Ser. B (MBIA Insured) ................................................... 5.250% 09/01/09 1,053,370
500,000 Los Angeles County Public Works Finance Authority, Regional
Park and Open Space District Ser. A ..................................... 5.000% 10/01/04 515,290
1,000,000 Los Angeles County Public Works Finance Authority, Regional
Park and Open Space District Ser. A ..................................... 5.000% 10/01/16 988,610
750,000 Los Angeles County Sanitation District Finance Authority, 1993 Ser. A ..... 5.250% 10/01/06 782,430
1,000,000 Los Angeles County Transportation Authority, Sales Tax Revenue ............ 5.000% 07/01/15 1,001,980
1,000,000 Los Angeles Dept. of Water & Power, Electric Plant Revenue Refunding ...... 5.500% 09/01/07 1,046,210
1,000,000 Los Angeles Dept. of Water & Power, Waterworks Revenue Refunding .......... 5.625% 04/15/08 1,044,380
</TABLE>
The accompanying notes are an integral part of these financial statements.
56 FREMONT MUTUAL FUNDS
<PAGE>
FREMONT CALIFORNIA INTERMEDIATE TAX-FREE FUND
October 31, 2000
SCHEDULE OF INVESTMENTS IN SECURITIES AND NET ASSETS
<TABLE>
<CAPTION>
Interest Maturity Value
Face Amount Issuer Rate Date (Note 1)
----------------------------------------------------------------------------------------------------------------------------------
MUNICIPAL BONDS (Cont.)
<S> <C> <C> <C> <C>
$1,000,000 Los Angeles Municipal Improvement Corporation Lease Revenue ............... 5.375% 06/01/15 $ 1,016,170
1,000,000 M-S-R Public Power Agency, San Juan Project Revenue Ser. F ................ 5.650% 07/01/03 1,040,380
1,000,000 Metropolitan Water District of Southern California, Waterworks GO
Refunding 1993 Ser. A ................................................... 5.250% 03/01/05 1,043,590
1,000,000 Modesto High School District, 1993 GO Refunding (FGIC Insured) ............ 5.300% 08/01/04 1,040,020
1,000,000 Modesto Irrigation District Finance Authority, Domestic Water
Project Revenue 1992 Ser. A (AMBAC Insured) ............................. 5.650% 09/01/03 1,047,700
500,000 Northern California Power Agency, Geothermal Project #3 Ser. A ............ 5.600% 07/01/06 522,755
500,000 Northern California Power Agency, Geothermal Project #3,
Escrowed to Maturity Ser. A ............................................. 5.600% 07/01/06 534,815
1,000,000 Orange County Transportation Authority, Measure M Sales
Tax Revenue First Ser. 1992 ............................................. 6.000% 02/15/06 1,080,320
1,000,000 Orange County Transportation Authority, Measure M Sales Tax
Revenue Second Senior Ser. 1994 (FGIC Insured) .......................... 5.000% 02/15/08 1,040,480
500,000 Peralta California Community College District ............................. 5.350% 08/01/17 508,735
1,000,000 Rancho Cucamonga RDA, 1994 Tax Allocation Refunding (MBIA Insured) ........ 5.000% 09/01/07 1,029,980
1,000,000 Sacramento County Sanitation District Finance Authority,
Revenue Bond (MBIA Insured) ............................................. 5.000% 12/01/08 1,033,700
1,000,000 Sacramento County Sanitation District Finance Authority,
Revenue Bond (MBIA Insured) ............................................. 5.125% 12/01/13 1,023,290
2,000,000 Sacramento MUD, Electric Revenue 1997 Ser. L .............................. 5.125% 07/01/15 2,020,780
1,000,000 San Bernardino County Transportation Authority, Sales Tax Revenue
1992 Ser. A (FGIC Insured) .............................................. 6.000% 03/01/03 1,043,050
550,000 San Francisco City & County Redevelopment Financing Authority ............. 5.125% 08/01/18 531,300
500,000 San Jose-Santa Clara County Water Financing Authority, Sewer Revenue ...... 5.250% 11/15/12 515,250
1,000,000 Santa Margarita/Dana Point Authority Orange County, Revenue
Bond Ser. A ............................................................. 5.375% 08/01/04 1,043,660
1,000,000 Santa Monica-Malibu Unified School District, Public School
Facilities Reconstruction Projects ...................................... 5.500% 08/01/18 1,055,360
500,000 Southern California Public Power Authority, Mead-Phoenix Project
Revenue 1994 Ser. A (AMBAC Insured) ..................................... 4.750% 07/01/08 509,040
1,000,000 Southern California Public Power Authority, Palo Verde Power
Projects Revenue 1993 Ser. A ............................................ 5.100% 07/01/06 1,037,510
1,000,000 University of California, Housing System Revenue 1993 Ser. A
(MBIA Insured) .......................................................... 5.500% 11/01/08 1,048,590
500,000 University of California, Research Facilities Revenue 1995 Ser. C
(AMBAC Insured) ......................................................... 5.100% 09/01/07 516,710
250,000 Vacaville California Public Financing Authority Tax Allocation Revenue .... 5.100% 09/01/11 254,968
1,000,000 West & Central Basin Finance Authority, West Basin Water Revenue
Refunding Project (AMBAC Insured) ....................................... 5.125% 08/01/06 1,036,560
1,500,000 Yucaipa School Facilities Finance Authority, 1995 Sweetwater
Refunding (MBIA Insured) ................................................ 6.000% 09/01/10 1,549,260
------------
TOTAL MUNICIPAL BONDS (Cost $58,193,462) 60,401,900
------------
SHORT-TERM INVESTMENT 2.4%
1,500,000 Provident Institutional Fund: Municipal Fund for California
Investors, Inc. ................................................................................ 1,500,000
------------
TOTAL SHORT-TERM INVESTMENT (Cost $1,500,000) 1,500,000
------------
TOTAL INVESTMENTS (Cost $59,693,462), 98.6% 61,901,900
------------
OTHER ASSETS AND LIABILITIES, NET, 1.4% 898,195
------------
NET ASSETS, 100.0% $ 62,800,095
============
</TABLE>
The accompanying notes are an integral part of these financial statements.
FREMONT MUTUAL FUNDS 57
<PAGE>
FREMONT MUTUAL FUNDS, INC.
Notes to Schedules of Investments in Securities and Net Assets
The following footnotes and abbreviations relate to the Schedules of Investments
in Securities and Net Assets on pages 23 through 57.
* Non-income producing security
** Security was purchased under Rule 144A of the Securities Act of 1933 or is
a private placement and, unless registered under the Act or exempted from
registration, may only be sold to qualified institutional investors.
(a) Represents discount rate or yield to maturity at the date of acquisition.
(b) As of October 31, 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
ARM Adjustable Rate Mortgage
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
TBA To Be Announced
CURRENCY ABBREVIATIONS
AU$ Australian Dollar
(Pound) British Pound
CN$ Canadian Dollar
DK Danish Kroner
GD Greek Drachmas
(Euro) Euro
DM German Deutschemark
(Yen) Japanese Yen
NZ$ New Zealand Dollar
SK Swedish Krona
$ U.S. Dollar
The accompanying notes are an integral part of these financial statements.
58 FREMONT MUTUAL FUNDS
<PAGE>
FREMONT MUTUAL FUNDS, INC.
Notes to Schedules of Investments in Securities
and Net Assets -- October 31, 2000
COUNTRY DIVERSIFICATION TABLE
Country Country International Emerging
Code Name Global Fund Growth Fund Markets Fund Bond Fund
--------------------------------------------------------------------------------
AU Australia 1.0% 2.1% -- --
AT Austria 0.3% -- -- --
BE Belgium -- -- -- --
BM Bermuda 0.1% 0.3% -- --
BR Brazil 0.8% -- 12.1% 0.5%
CA Canada 2.8% 3.9% -- --
CL Chile -- -- 1.9% --
CN China -- -- 5.8% --
HR Croatia -- -- 2.4% --
DK Denmark 0.7% -- -- --
EG Egypt -- -- 1.5% --
FI Finland 1.0% 3.1% -- --
FR France 2.9% 6.9% -- --
DE Germany 5.0% 4.5% -- 0.4%
GR Greece 0.9% 0.1% -- --
HK Hong Kong 0.8% 3.2% 7.7% --
HU Hungary -- -- 3.9% --
IN India -- -- 5.8% --
ID Indonesia -- -- -- --
IE Ireland 0.6% 0.6% -- --
IL Israel -- -- 1.2% --
IT Italy 1.7% 2.5% -- 1.9%
JP Japan 5.7% 23.1% -- --
LU Luxembourg -- 0.2% -- --
MY Malaysia 0.7% -- 1.6% --
MX Mexico 1.7% 1.5% 14.6% 0.2%
NL Netherlands 2.0% 6.2% -- --
NZ New Zealand 0.7% -- -- --
NO Norway 0.4% 0.6% -- --
PE Peru -- -- -- --
PH Philippines 0.1% -- -- --
PL Poland 0.1% -- 1.0% --
PT Portugal -- 0.4% -- --
RU Russian Federation -- 0.2% 1.5% --
SG Singapore 0.5% 1.1% 1.7% --
ZA South Africa -- -- 2.7% --
KR South Korea 0.3% 1.9% 14.0% --
ES Spain 0.8% 1.1% -- --
SE Sweden 0.5% 2.5% -- --
CH Switzerland 1.1% 5.0% -- --
TW Taiwan 0.4% 1.6% 4.7% --
TH Thailand -- -- 3.1% --
TR Turkey 0.1% -- 2.6% --
UK United Kingdom 4.7% 13.8% 2.4% 2.0%
US United States 61.6% 13.6% 7.8% 95.0%
--------------------------------------------------
Total 100.0% 100.0% 100.0% 100.0%
==================================================
The accompanying notes are an integral part of these financial statements.
FREMONT MUTUAL FUNDS 59
<PAGE>
FREMONT MUTUAL FUNDS, INC.
October 31, 2000
STATEMENTS 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 $ 778,302 $ 74,741 $ 14,282
Repurchase agreements at cost 17,278 2,168 307
------------ ------------ ------------
TOTAL INVESTMENTS AT COST $ 795,580 $ 76,909 $ 14,589
============ ============ ============
Investments in securities at value $ 784,611 $ 78,655 $ 11,984
Repurchase agreements at value 17,278 2,168 307
Cash 1,192 2,026 53
Dividends and interest receivable 4,628 95 21
Receivable for securities sold 3,984 -- 386
Receivable from sale of fund shares 6,757 5,378 365
Receivable from management -- 31 --
Variation margin receivable 1,804 -- --
Unrealized appreciation on foreign currency contracts 7,088 105 --
Other assets 1 -- 10
------------ ------------ ------------
TOTAL ASSETS 827,343 88,458 13,126
------------ ------------ ------------
LIABILITIES:
Bank overdraft -- -- --
Liabilities for options written 3 -- --
Payable for securities purchased 23,493 694 95
Payable for short sales 2,167 -- --
Payable for fund shares redeemed 278 921 --
Unrealized depreciation on foreign currency contracts 1,233 213 --
Accrued expenses
Investment advisory, administrative and distribution fees 479 92 --
Other 200 21 30
------------ ------------ ------------
TOTAL LIABILITIES 27,853 1,941 125
------------ ------------ ------------
NET ASSETS $ 799,490 $ 86,517 $ 13,001
============ ============ ============
Net assets consist of:
Paid in capital $ 770,398 $ 77,854 $ 17,712
Undistributed net investment income (loss) (1,342) 59 --
Unrealized appreciation (depreciation) on investments,
futures and options 1,084 3,914 (2,298)
Unrealized appreciation (depreciation) on foreign currency
contracts and other assets and liabilities 5,989 (114) (9)
Accumulated net realized gain (loss) 23,361 4,804 (2,404)
------------ ------------ ------------
NET ASSETS $ 799,490 $ 86,517 $ 13,001
============ ============ ============
SHARES OF CAPITAL STOCK OUTSTANDING 59,116 7,134 1,631
============ ============ ============
NET ASSET VALUE PER SHARE $ 13.52 $ 12.13 $ 7.97
============ ============ ============
</TABLE>
The Global Fund received premiums of $4 on written options.
The Global Fund received $2,163 in proceeds from securities sold short.
The accompanying notes are an integral part of these financial statements.
60 FREMONT MUTUAL FUNDS
<PAGE>
FREMONT MUTUAL FUNDS, INC.
October 31, 2000
U.S. U.S. Real Estate
Micro-Cap Small Cap Growth Securities
Fund Fund Fund Fund
------------------------------------------------------------
$ 589,021 $ 51,692 $ 93,648 $ 27,289
186,076 16,108 277 699
------------ ------------ ------------ ------------
$ 775,097 $ 67,800 $ 93,925 $ 27,988
============ ============ ============ ============
$ 628,787 $ 54,854 $ 122,637 $ 26,370
186,076 16,108 277 699
88 -- 13 2
62 5 101 102
12,502 1,261 -- 467
5,349 2,286 1,068 68
-- 41 -- --
-- -- 73 --
-- -- -- --
-- 6 -- 37
------------ ------------ ------------ ------------
832,864 74,561 124,169 27,745
------------ ------------ ------------ ------------
-- 1 -- --
-- -- -- --
4,433 2,305 -- 1,509
-- -- -- --
1,459 66 37 335
-- -- -- --
999 81 64 28
-- 41 38 44
------------ ------------ ------------ ------------
6,891 2,494 139 1,916
------------ ------------ ------------ ------------
$ 825,973 $ 72,067 $ 124,030 $ 25,829
============ ============ ============ ============
$ 724,563 $ 64,659 $ 90,011 $ 33,065
8 -- 1 --
39,766 3,162 29,058 (919)
-- -- -- --
61,636 4,246 4,960 (6,317)
------------ ------------ ------------ ------------
$ 825,973 $ 72,067 $ 124,030 $ 25,829
============ ============ ============ ============
23,609 3,854 7,956 3,314
============ ============ ============ ============
$ 34.99 $ 18.70 $ 15.59 $ 7.79
============ ============ ============ ============
FREMONT MUTUAL FUNDS 61
<PAGE>
FREMONT MUTUAL FUNDS, INC.
October 31, 2000
STATEMENTS OF ASSETS AND LIABILITIES
(All numbers in thousands except net asset value per share)
<TABLE>
<CAPTION>
California
Bond Money Market Intermediate
Fund Fund Tax-Free Fund
---------------------------------------------
ASSETS:
<S> <C> <C> <C>
Investments in securities at cost $ 336,766 $ 668,538 $ 59,694
Repurchase agreements at cost 1,530 79 --
------------ ------------ ------------
TOTAL INVESTMENTS AT COST $ 338,296 $ 668,617 $ 59,694
============ ============ ============
Investments in securities at value $ 332,043 $ 668,538 $ 61,902
Repurchase agreements at value 1,530 79 --
Cash 803 277 335
Dividends and interest receivable 2,905 654 786
Receivable for securities sold 17,965 -- --
Receivable from sale of fund shares 1,416 51,557 --
Receivable from management -- -- 15
Other receivables 11 1 --
Unrealized appreciation on foreign currency contracts 293 -- --
------------ ------------ ------------
TOTAL ASSETS 356,966 721,106 63,038
------------ ------------ ------------
LIABILITIES:
Liabilities for options written 51 -- --
Income dividend payable 103 22 185
Payable for securities purchased 94,778 -- --
Payable for short sales 9,199 -- --
Payable for reverse repurchase agreement 23,077 -- --
Payable for fund shares redeemed 2,044 12,833 --
Payable for variation margin 106 -- --
Accrued expenses:
Investment advisory, administrative and distribution fees 92 200 25
Other 66 59 28
------------ ------------ ------------
TOTAL LIABILITIES 129,516 13,114 238
------------ ------------ ------------
NET ASSETS $ 227,450 $ 707,992 $ 62,800
============ ============ ============
Net assets consist of:
Paid in capital $ 237,128 $ 707,992 $ 60,965
Undistributed net investment (loss) (293) -- --
Unrealized appreciation (depreciation) on investments,
futures and options (4,943) -- 2,208
Unrealized appreciation on foreign currency contracts
and other assets and liabilities 237 -- --
Accumulated net realized (loss) (4,679) -- (373)
------------ ------------ ------------
NET ASSETS $ 227,450 $ 707,992 $ 62,800
============ ============ ============
SHARES OF CAPITAL STOCK OUTSTANDING 23,365 707,992 5,780
============ ============ ============
NET ASSET VALUE PER SHARE $ 9.73 $ 1.00 $ 10.87
============ ============ ============
</TABLE>
The Bond Fund received premiums of $57 on written options.
The Bond Fund received $9,265 in proceeds from securities sold short.
The accompanying notes are an integral part of these financial statements.
62 FREMONT MUTUAL FUNDS
<PAGE>
FREMONT MUTUAL FUNDS, INC.
October 31, 2000
This page left blank intentionally
FREMONT MUTUAL FUNDS 63
<PAGE>
FREMONT MUTUAL FUNDS, INC.
Year Ended October 31, 2000
STATEMENTS OF OPERATIONS
(All numbers in thousands)
<TABLE>
<CAPTION>
International Emerging
Global Growth Markets
Fund Fund Fund
----------------------------------------------
INVESTMENT INCOME:
<S> <C> <C> <C>
Interest $ 23,299 $ 308 $ 45
Dividends 3,584 875 156
------------ ------------ ------------
TOTAL INCOME* 26,883 1,183 201
------------ ------------ ------------
EXPENSES:
Investment advisory and administrative fees 5,851 929 190
Shareholder servicing fees 231 83 53
Custody fees 326 56 27
Distribution fees -- 202 41
Accounting fees 419 29 20
Audit and legal fees 62 32 33
Directors' fees 12 12 12
Registration fees 34 12 12
Reports to shareholders 43 8 10
Interest expense 1 9 8
Other 58 6 7
------------ ------------ ------------
TOTAL EXPENSES BEFORE REDUCTIONS 7,037 1,378 413
Earned custody credits (13) (1) (8)
Expenses waived and/or reimbursed by Advisor -- (165) (156)
------------ ------------ ------------
TOTAL NET EXPENSES 7,024 1,212 249
------------ ------------ ------------
NET INVESTMENT INCOME (LOSS) 19,859 (29) (48)
------------ ------------ ------------
REALIZED AND UNREALIZED GAIN (LOSS) FROM INVESTMENTS
AND FOREIGN CURRENCY:
Net realized gain (loss) from:
Investments 64,079 6,477 3,784
Futures 3,076 -- --
Options 23 -- --
Foreign currency transactions 8,901 (607) (7)
Net unrealized appreciation (depreciation) on:
Investments, futures and options (44,066) (8,489) (3,742)
Translation of assets and liabilities in foreign currencies 8,278 40 (8)
------------ ------------ ------------
Net realized and unrealized gain (loss) from investments
and foreign currency 40,291 (2,579) 27
------------ ------------ ------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING
FROM OPERATIONS $ 60,150 $ (2,608) $ (21)
============ ============ ============
</TABLE>
* Net of foreign taxes withheld of $235 for the Global Fund, $122 for the
International Growth Fund and $1 for the Real Estate Securities Fund.
The accompanying notes are an integral part of these financial statements.
64 FREMONT MUTUAL FUNDS
<PAGE>
FREMONT MUTUAL FUNDS, INC.
Year Ended October 31, 2000
U.S. U.S. Real Estate
Micro-Cap Small Cap Growth Securities
Fund Fund Fund Fund
---------------------------------------------------------------
$ 14,057 $ 672 $ 318 $ 62
229 33 1,600 2,121
------------ ------------ ------------ ------------
14,286 705 1,918 2,183
------------ ------------ ------------ ------------
13,786 773 866 312
-- 171 148 119
-- 28 21 10
-- 168 -- 78
-- 20 28 15
-- 32 22 60
-- 12 11 12
-- 15 13 11
-- 13 27 30
-- -- 1 1
-- 8 16 7
------------ ------------ ------------ ------------
13,786 1,240 1,153 655
-- (4) (1) (1)
-- (228) -- (186)
------------ ------------ ------------ ------------
13,786 1,008 1,152 468
------------ ------------ ------------ ------------
500 (303) 766 1,715
------------ ------------ ------------ ------------
189,664 9,333 7,477 375
-- -- (171) --
-- -- -- --
-- -- -- --
(27,312) (3,839) 1,341 1,220
-- -- -- --
------------ ------------ ------------ ------------
162,352 5,494 8,647 1,595
------------ ------------ ------------ ------------
$ 162,852 $ 5,191 $ 9,413 $ 3,310
============ ============ ============ ============
FREMONT MUTUAL FUNDS 65
<PAGE>
FREMONT MUTUAL FUNDS, INC.
Year Ended October 31, 2000
STATEMENTS OF OPERATIONS
(All numbers in thousands)
<TABLE>
<CAPTION>
California
Bond Money Market Intermediate
Fund Fund Tax-Free Fund
---------------------------------------------
INVESTMENT INCOME:
<S> <C> <C> <C>
Interest $ 14,633 $ 43,990 $ 3,185
Dividends 81 -- --
------------ ------------ ------------
TOTAL INCOME 14,714 43,990 3,185
------------ ------------ ------------
EXPENSES:
Investment advisory and administrative fees 979 2,523 314
Shareholder servicing fees 63 151 25
Custody fees 70 57 13
Accounting fees 32 101 25
Audit and legal fees 22 22 33
Directors' fees 11 11 12
Registration fees 17 40 2
Reports to shareholders 16 18 5
Interest expense 2,159 -- 7
Other 14 44 5
------------ ------------ ------------
TOTAL EXPENSES BEFORE REDUCTIONS 3,383 2,967 441
Earned custody credits (33) -- (10)
Expenses waived and/or reimbursed by Advisor (89) -- (126)
------------ ------------ ------------
TOTAL NET EXPENSES 3,261 2,967 305
------------ ------------ ------------
NET INVESTMENT INCOME 11,453 41,023 2,880
------------ ------------ ------------
REALIZED AND UNREALIZED GAIN (LOSS) FROM INVESTMENTS
AND FOREIGN CURRENCY:
Net realized gain (loss) from:
Investments 1,613 -- (373)
Futures (204) -- --
Options 449 -- --
Foreign currency transactions 1,985 -- --
Net unrealized appreciation (depreciation) on:
Investments, futures and options (1,228) -- 1,437
Translation of assets and liabilities in foreign currencies 33 -- --
------------ ------------ ------------
Net realized and unrealized gain (loss) from investments
and foreign currency 2,648 -- 1,064
------------ ------------ ------------
NET INCREASE IN NET ASSETS RESULTING
FROM OPERATIONS $ 14,101 $ 41,023 $ 3,944
============ ============ ============
</TABLE>
The accompanying notes are an integral part of these financial statements.
66 FREMONT MUTUAL FUNDS
<PAGE>
FREMONT MUTUAL FUNDS, INC.
October 31, 2000
This page left blank intentionally
FREMONT MUTUAL FUNDS 67
<PAGE>
FREMONT MUTUAL FUNDS, INC.
STATEMENTS OF CHANGES IN NET ASSETS
For the Years Ended October 31, 2000 and 1999
(All numbers in thousands)
<TABLE>
<CAPTION>
International
Global Growth
Fund Fund
---------------------------- ----------------------------
2000 1999 2000 1999
------------ ------------ ------------ ------------
INCREASE (DECREASE) IN NET ASSETS:
From operations:
<S> <C> <C> <C> <C>
Net investment income (loss) $ 19,859 $ 18,611 $ (29) $ 18
Net realized gain (loss) from investments
and transactions in written options and futures 67,178 65,730 6,477 2,435
Net realized gain (loss) from foreign currency transactions 8,901 (4,263) (607) (346)
Net unrealized appreciation (depreciation) on investments (44,066) 15,623 (8,489) 13,260
Net unrealized appreciation (depreciation) on translation of
assets and liabilities in foreign currencies 8,278 8,831 40 149
------------ ------------ ------------ ------------
Net increase (decrease) in net assets from operations 60,150 104,532 (2,608) 15,516
------------ ------------ ------------ ------------
Distributions to shareholders from:
Net investment income (28,024) (22,322) (103) (38)
Net realized gains (98,478) (50,845) (2,841) (4,043)
------------ ------------ ------------ ------------
Total distributions to shareholders (126,502) (73,167) (2,944) (4,081)
------------ ------------ ------------ ------------
From capital share transactions:
Proceeds from shares sold 540,486 232,092 452,255 146,675
Value of shares issued on merger -- 4,265 7,431 --
Reinvested dividends 123,370 71,554 1,284 1,072
Payments for shares redeemed (484,822) (283,633) (428,875) (140,831)
------------ ------------ ------------ ------------
Net increase in net assets
from capital share transactions 179,034 24,278 32,095 6,916
------------ ------------ ------------ ------------
Net increase in net assets 112,682 55,643 26,543 18,351
Net assets at beginning of period 686,808 631,165 59,974 41,623
------------ ------------ ------------ ------------
NET ASSETS AT END OF PERIOD $ 799,490 $ 686,808 $ 86,517 $ 59,974
============ ============ ============ ============
Undistributed net investment income (loss) $ (1,342) $ 2,575 $ 59 $ 91
============ ============ ============ ============
CAPITAL TRANSACTIONS IN SHARES:
Sold 35,930 16,028 31,779 12,515
Issued on merger -- 301 528 --
Reinvested dividends 8,713 5,142 99 106
Redeemed (32,092) (19,575) (29,881) (12,039)
------------ ------------ ------------ ------------
Net increase (decrease) from capital share transactions 12,551 1,896 2,525 582
============ ============ ============ ============
</TABLE>
The accompanying notes are an integral part of these financial statements.
68 FREMONT MUTUAL FUNDS
<PAGE>
FREMONT MUTUAL FUNDS, INC.
<TABLE>
<CAPTION>
Emerging U.S. U.S.
Markets Micro-Cap Small Cap
Fund Fund Fund
---------------------------- ---------------------------- ----------------------------
2000 1999 2000 1999 2000 1999
------------ ------------ ------------ ------------ ------------ ------------
<S> <C> <C> <C> <C> <C>
$ (48) $ (65) $ 500 $ (1,933) $ (303) $ (115)
3,784 (1,163) 189,664 62,303 9,333 2,059
(7) (7) -- -- -- --
(3,742) 4,021 (27,312) 79,635 (3,839) 6,869
(8) (4) -- -- -- --
------------ ------------ ------------ ------------ ------------ ------------
(21) 2,782 162,852 140,005 5,191 8,813
------------ ------------ ------------ ------------ ------------ ------------
(464) -- (492) -- (1) --
-- -- (128,587) (53,551) (4,782) (1,080)
------------ ------------ ------------ ------------ ------------ ------------
(464) -- (129,079) (53,551) (4,783) (1,080)
------------ ------------ ------------ ------------ ------------ ------------
44,334 12,523 1,577,644 448,130 112,169 21,646
-- -- -- -- -- --
418 -- 119,451 43,583 4,497 1,023
(42,854) (12,459) (1,205,398) (397,680) (74,586) (8,190)
------------ ------------ ------------ ------------ ------------ ------------
1,898 64 491,697 94,033 42,080 14,479
------------ ------------ ------------ ------------ ------------ ------------
1,413 2,846 525,470 180,487 42,488 22,212
11,588 8,742 300,503 120,016 29,579 7,367
------------ ------------ ------------ ------------ ------------ ------------
$ 13,001 $ 11,588 $ 825,973 $ 300,503 $ 72,067 $ 29,579
============ ============ ============ ============ ============ ============
$ -- $ -- $ 8 $ -- $ -- $ --
============ ============ ============ ============ ============ ============
4,491 1,731 36,444 17,299 5,017 1,611
-- -- -- -- -- --
44 -- 3,410 1,614 244 69
(4,349) (1,769) (26,839) (15,663) (3,287) (630)
------------ ------------ ------------ ------------ ------------ ------------
186 (38) 13,015 3,250 1,974 1,050
============ ============ ============ ============ ============ ============
</TABLE>
FREMONT MUTUAL FUNDS 69
<PAGE>
FREMONT MUTUAL FUNDS, INC.
STATEMENTS OF CHANGES IN NET ASSETS
For the Years Ended October 31, 2000 and 1999
(All numbers in thousands)
<TABLE>
<CAPTION>
Real Estate
Growth Securities
Fund Fund
---------------------------- ----------------------------
2000 1999 2000 1999
------------ ------------ ------------ ------------
INCREASE (DECREASE) IN NET ASSETS:
From operations:
<S> <C> <C> <C> <C>
Net investment income $ 766 $ 1,222 $ 1,715 $ 1,413
Net realized gain (loss) from investments
and transactions in written options and futures 7,306 16,478 375 (2,698)
Net realized gain (loss) from foreign currency transactions -- -- -- --
Net unrealized appreciation (depreciation) on investments 1,341 15,054 1,220 1,057
Net unrealized appreciation on translation of
assets and liabilities in foreign currencies -- -- -- --
------------ ------------ ------------ ------------
Net increase (decrease) in net assets from operations 9,413 32,754 3,310 (228)
------------ ------------ ------------ ------------
Distributions to shareholders from:
Net investment income (864) (1,431) (1,715) (1,587)
Net realized gains (9,408) (28,835) -- --
Paid in capital -- -- (269) (349)
------------ ------------ ------------ ------------
Total distributions to shareholders (10,272) (30,266) (1,984) (1,936)
------------ ------------ ------------ ------------
From capital share transactions:
Proceeds from shares sold 74,722 196,253 14,131 14,832
Reinvested dividends 8,512 17,970 1,753 1,723
Payments for shares redeemed (101,104) (233,327) (22,880) (16,374)
------------ ------------ ------------ ------------
Net increase (decrease) in net assets
from capital share transactions (17,870) (19,104) (6,996) 181
------------ ------------ ------------ ------------
Net increase (decrease) in net assets (18,729) (16,616) (5,670) (1,983)
Net assets at beginning of period 142,759 159,375 31,499 33,482
------------ ------------ ------------ ------------
NET ASSETS AT END OF PERIOD $ 124,030 $ 142,759 $ 25,829 $ 31,499
============ ============ ============ ============
Undistributed net investment income (loss) $ 1 $ 99 $ -- $ --
============ ============ ============ ============
CAPITAL TRANSACTIONS IN SHARES:
Sold 4,772 12,281 1,827 1,854
Reinvested dividends 560 1,237 227 217
Redeemed (6,470) (14,665) (2,936) (2,069)
------------ ------------ ------------ ------------
Net increase (decrease) from capital share transactions (1,138) (1,147) (882) 2
============ ============ ============ ============
</TABLE>
The accompanying notes are an integral part of these financial statements.
70 FREMONT MUTUAL FUNDS
<PAGE>
FREMONT MUTUAL FUNDS, INC.
<TABLE>
<CAPTION>
California
Bond Money Market Intermediate
Fund Fund Tax-Free Fund
---------------------------- ---------------------------- ----------------------------
2000 1999 2000 1999 2000 1999
------------ ------------ ------------ ------------ ------------ ------------
<S> <C> <C> <C> <C> <C>
$ 11,453 $ 12,371 $ 41,023 $ 35,543 $ 2,880 $ 3,069
1,861 (5,405) -- -- (373) 7
1,985 (226) -- -- -- --
(1,231) (7,778) -- -- 1,437 (3,492)
33 365 -- -- -- --
------------ ------------ ------------ ------------ ------------ ------------
14,101 (673) 41,023 35,543 3,944 (416)
------------ ------------ ------------ ------------ ------------ ------------
(13,442) (12,356) (41,023) (35,543) (2,880) (3,069)
-- (3,911) -- -- (7) (19)
-- -- -- -- -- --
------------ ------------ ------------ ------------ ------------ ------------
(13,442) (16,267) (41,023) (35,543) (2,887) (3,088)
------------ ------------ ------------ ------------ ------------ ------------
226,881 142,138 1,320,124 1,395,544 10,098 6,886
12,263 15,792 40,385 35,272 574 571
(196,788) (184,556) (1,413,467) (1,387,157) (12,848) (4,045)
------------ ------------ ------------ ------------ ------------ ------------
42,356 (26,626) (52,958) 43,659 (2,176) 3,412
------------ ------------ ------------ ------------ ------------ ------------
43,015 (43,566) (52,958) 43,659 (1,119) (92)
184,435 228,001 760,950 717,291 63,919 64,011
------------ ------------ ------------ ------------ ------------ ------------
$ 227,450 $ 184,435 $ 707,992 $ 760,950 $ 62,800 $ 63,919
============ ============ ============ ============ ============ ============
$ (293) $ 30 $ -- $ -- $ -- $ --
============ ============ ============ ============ ============ ============
21,924 14,118 1,320,124 1,395,179 935 617
2,717 1,578 40,385 35,637 53 52
(20,371) (18,442) (1,413,467) (1,387,157) (1,199) (369)
------------ ------------ ------------ ------------ ------------ ------------
4,270 (2,746) (52,958) 43,659 (211) 300
============ ============ ============ ============ ============ ============
</TABLE>
FREMONT MUTUAL FUNDS 71
<PAGE>
FREMONT MUTUAL FUNDS, INC.
October 31, 2000
STATEMENT OF CASH FLOWS
For the year ended October 31, 2000
(All numbers in thousands)
Bond
Fund
------------
INCREASE (DECREASE) IN CASH FROM:
OPERATING ACTIVITIES
Net investment income $ 11,453
Purchases of long-term securities (1,864,733)
Proceeds from sales of long-term securities 1,827,376
Net sales of short-term securities, futures and options 124
Change in other receivables and payables (net) 362
------------
Net decrease from operating activities (25,418)
------------
FINANCING ACTIVITIES
Sales of fund shares 226,881
Redemptions of fund shares (196,788)
Cash distributions paid (1,179)
Borrowings 354,565
Repayments of borrowings (357,274)
------------
Net increase from financing activities 26,205
------------
NET INCREASE IN CASH 787
CASH
Beginning of year 16
------------
END OF YEAR $ 803
============
Interest paid on borrowings $ 2,156
============
The accompanying notes are an integral part of these financial statements.
72 FREMONT MUTUAL FUNDS
<PAGE>
FREMONT MUTUAL FUNDS, INC.
Financial Highlights
<TABLE>
<CAPTION>
FREMONT GLOBAL FUND Year Ended October 31
-------------------------------------------------------------------------------------------------------------------------
2000 1999 1998 1997 1996
---------- ---------- ---------- ---------- ----------
SELECTED PER SHARE DATA
for one share outstanding during the period
<S> <C> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD $ 14.75 $ 14.13 $ 14.16 $ 15.11 $ 14.24
---------- ---------- ---------- ---------- ----------
INCOME FROM INVESTMENT OPERATIONS
Net investment income .39 .41 .34 .45 .39
Net realized and unrealized gain .89 1.89 .17 1.31 1.49
---------- ---------- ---------- ---------- ----------
Total investment operations 1.28 2.30 .51 1.76 1.88
---------- ---------- ---------- ---------- ----------
LESS DISTRIBUTIONS
From net investment income (.54) (.50) (.25) (.52) (.44)
From net realized gains (1.97) (1.18) (.29) (2.19) (.57)
---------- ---------- ---------- ---------- ----------
Total distributions (2.51) (1.68) (.54) (2.71) (1.01)
---------- ---------- ---------- ---------- ----------
NET ASSET VALUE, END OF PERIOD $ 13.52 $ 14.75 $ 14.13 $ 14.16 $ 15.11
========== ========== ========== ========== ==========
TOTAL RETURN 8.86% 17.37% 3.62% 13.01% 13.72%
RATIOS AND SUPPLEMENTAL DATA
Net assets, end of period (000s omitted) $ 799,490 $ 686,808 $ 631,165 $ 665,747 $ 572,150
Ratio of expenses to average net assets 2 .90% .86% .85% .85% .87%
Ratio of net investment income
to average net assets 2.54% 2.85% 2.80% 2.66% 2.66%
Portfolio turnover rate 112% 113% 75% 48% 71%
<CAPTION>
FREMONT INTERNATIONAL GROWTH FUND Year Ended October 31
-------------------------------------------------------------------------------------------------------------------------
2000 1999 1998 1997 1996
---------- ---------- ---------- ---------- ----------
SELECTED PER SHARE DATA
for one share outstanding during the period
<S> <C> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD $ 13.01 $ 10.34 $ 10.37 $ 10.40 $ 9.72
---------- ---------- ---------- ---------- ----------
INCOME FROM INVESTMENT OPERATIONS
Net investment income (loss) --8 --8 .05 .02 (.02)
Net realized and unrealized gain (loss) (.28) 3.69 .03 (.02) .71
---------- ---------- ---------- ---------- ----------
Total investment operations (.28) 3.69 .08 -- .69
---------- ---------- ---------- ---------- ----------
LESS DISTRIBUTIONS
From net investment income (.02) (.01) -- -- (.01)
From net realized gains (.58) (1.01) (.11) .03 --
---------- ---------- ---------- ---------- ----------
Total distributions (.60) (1.02) (.11) .03 (.01)
---------- ---------- ---------- ---------- ----------
NET ASSET VALUE, END OF PERIOD $ 12.13 $ 13.01 $ 10.34 $ 10.37 $ 10.40
========== ========== ========== ========== ==========
TOTAL RETURN (2.54)%1 38.70%1 .80%1 -.01% 7.07%
RATIOS AND SUPPLEMENTAL DATA
Net assets, end of period (000s omitted) $ 86,517 $ 59,974 $ 41,623 $ 38,643 $ 35,273
Ratio of net expenses to average net assets 2 1.50% 1.50% 1.50% 1.50% 1.50%
Ratio of gross expenses to average net assets 1.70% 1.74% 1.65% 1.50% 1.50%
Ratio of net investment income (loss)
to average net assets -.04% .04% .53% .34% -.20%
Portfolio turnover rate 43% 76% 106% 95% 74%
</TABLE>
For footnote references, see "Notes to Financial Highlights" on page 78.
The accompanying notes are an integral part of these financial statements.
FREMONT MUTUAL FUNDS 73
<PAGE>
FREMONT MUTUAL FUNDS, INC.
Financial Highlights
<TABLE>
<CAPTION>
FREMONT EMERGING MARKETS FUND Year Ended October 31 Period from
---------------------------------------------------------------------------------------------------------- 6/24/96 to
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) (.04) (.04) .09 .17 .10
Net realized and unrealized gain (loss) .33 2.17 (3.64) 1.03 (.41)
---------- ---------- ---------- ---------- ----------
Total investment operations .29 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 $ 7.97 $ 8.02 $ 5.89 $ 9.58 $ 9.62
========== ========== ========== ========== ==========
TOTAL RETURN 1 2.85% 36.16% -37.59% 12.55% -3.12%
RATIOS AND SUPPLEMENTAL DATA
Net assets, end of period (000s omitted) $ 13,001 $ 11,588 $ 8,742 $ 12,175 $ 3,772
Ratio of net expenses to average net assets 2 1.50% 1.50% 1.50% .26% --%*
Ratio of gross expenses to average net assets 2 2.49% 2.77% 2.34% 2.63% 4.95%*
Ratio of net investment income (loss)
to average net assets -.29% -.70% .99% 2.04% 3.32%*
Portfolio turnover rate 147% 148% 135% 208% 7%
<CAPTION>
FREMONT U.S. MICRO-CAP FUND Year Ended October 31
-------------------------------------------------------------------------------------------------------------------------
2000 1999 1998 1997 1996
---------- ---------- ---------- ---------- ----------
SELECTED PER SHARE DATA
for one share outstanding during the period
<S> <C> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD $ 28.36 $ 16.34 $ 22.69 $ 19.63 $ 14.34
---------- ---------- ---------- ---------- ----------
INCOME FROM INVESTMENT OPERATIONS
Net investment income (loss) .02 (.18) (.25) (.10) (.04)
Net realized and unrealized gain (loss) 13.03 17.94 (4.86) 5.60 5.83
---------- ---------- ---------- ---------- ----------
Total investment operations 13.05 17.76 (5.11) 5.50 5.79
---------- ---------- ---------- ---------- ----------
LESS DISTRIBUTIONS
From net investment income (.02) -- -- -- --
From net realized gains (6.40) (5.74) (1.24) (2.44) (.50)
---------- ---------- ---------- ---------- ----------
Total distributions (6.42) (5.74) (1.24) (2.44) (.50)
---------- ---------- ---------- ---------- ----------
NET ASSET VALUE, END OF PERIOD $ 34.99 $ 28.36 $ 16.34 $ 22.69 $ 19.63
========== ========== ========== ========== ==========
TOTAL RETURN 46.07% 110.46% (23.45)% 28.80%1 41.46%1
RATIOS AND SUPPLEMENTAL DATA
Net assets, end of period (000s omitted) $ 825,973 $ 300,503 $ 120,016 $ 171,507 $ 102,481
Ratio of net expenses to average net assets 3 1.57% 1.82% 1.94% 1.88% 1.96%
Ratio of gross expenses to average net assets 3 1.57% 1.82% 1.94% 1.90% 2.22%
Ratio of net investment income (loss) to
average net assets .06% -.97% -1.22% -.67% -.51%
Portfolio turnover rate 117% 164% 170% 125% 81%
</TABLE>
For footnote references, see "Notes to Financial Highlights" on page 78.
The accompanying notes are an integral part of these financial statements.
74 FREMONT MUTUAL FUNDS
<PAGE>
FREMONT MUTUAL FUNDS, INC.
Financial Highlights
<TABLE>
<CAPTION>
FREMONT U.S. SMALL CAP FUND Year Ended October 31 Period from
------------------------------------------------------------------------------------------- 9/24/97 to
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) (.08) (.02) (.04) .02
Net realized and unrealized gain (loss) 4.42 7.49 (.66) (.42)
---------- ---------- ---------- ----------
Total investment operations 4.34 7.47 (.70) (.40)
---------- ---------- ---------- ----------
LESS DISTRIBUTIONS
From net investment income -- -- --4 (.02)
From net realized gains (1.38) (.60) --4 (.01)
---------- ---------- ---------- ----------
Total distributions (1.38) (.60) --4 (.03)
---------- ---------- ---------- ----------
NET ASSET VALUE, END OF PERIOD $ 18.70 $ 15.74 $ 8.87 $ 9.57
========== ========== ========== ==========
TOTAL RETURN 1 27.75% 84.60% -7.29% -4.06%
RATIOS AND SUPPLEMENTAL DATA
Net assets, end of period (000s omitted) $ 72,067 $ 29,579 $ 7,367 $ 5,350
Ratio of net expenses to average net assets 2 1.50% 1.50% 1.50% 1.50%*
Ratio of gross expenses to average net assets 2 1.83% 2.15% 2.85% 3.32%*
Ratio of net investment income (loss)
to average net assets -.45% -.75% -.52% 1.81%*
Portfolio turnover rate 148% 161% 273% 8%
<CAPTION>
FREMONT GROWTH FUND Year Ended October 31
-------------------------------------------------------------------------------------------------------------------------
2000 1999 1998 1997 1996
---------- ---------- ---------- ---------- ----------
SELECTED PER SHARE DATA
for one share outstanding during the period
NET ASSET VALUE, BEGINNING OF PERIOD $ 15.70 $ 15.56 $ 14.96 $ 15.02 $ 13.06
---------- ---------- ---------- ---------- ----------
INCOME FROM INVESTMENT OPERATIONS
Net investment income .10 .14 .20 .20 .10
Net realized and unrealized gain .98 3.20 .87 3.43 2.65
---------- ---------- ---------- ---------- ----------
Total investment operations 1.08 3.34 1.07 3.63 2.75
---------- ---------- ---------- ---------- ----------
LESS DISTRIBUTIONS
From net investment income (.11) (.16) (.17) (.22) (.08)
From net realized gains (1.08) (3.04) (.30) (3.47) (.71)
---------- ---------- ---------- ---------- ----------
Total distributions (1.19) (3.20) (.47) (3.69) (.79)
---------- ---------- ---------- ---------- ----------
NET ASSET VALUE, END OF PERIOD $ 15.59 $ 15.70 $ 15.56 $ 14.96 $ 15.02
========== ========== ========== ========== ==========
TOTAL RETURN 7.18% 24.24% 7.30% 29.26% 22.06%
RATIOS AND SUPPLEMENTAL DATA
Net assets, end of period (000s omitted) $ 124,030 $ 142,759 $ 159,375 $ 147,641 $ 78,624
Ratio of net expenses to average net assets .87% .82% .82% .85% .92%
Ratio of net investment income to
average net assets .58% .82% 1.25% 1.44% .75%
Portfolio turnover rate 68% 80% 111% 48% 129%
</TABLE>
For footnote references, see "Notes to Financial Highlights" on page 78.
The accompanying notes are an integral part of these financial statements.
FREMONT MUTUAL FUNDS 75
<PAGE>
FREMONT MUTUAL FUNDS, INC.
Financial Highlights
<TABLE>
<CAPTION>
FREMONT REAL ESTATE SECURITIES FUND Year Ended October 31 Period from
---------------------------------------------------------------------------- 12/31/97 to
2000 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 .43 .35 .19
Net realized and unrealized gain (loss) .35 (.34) (2.07)
---------- ---------- ----------
Total investment operations .78 .01 (1.88)
---------- ---------- ----------
LESS DISTRIBUTIONS
From net investment income (.43) (.39) (.14)
From net realized gains -- -- --
Return of capital distribution (.07) (.09) --
---------- ---------- ----------
Total distributions (.50) (.48) (.14)
---------- ---------- ----------
NET ASSET VALUE, END OF PERIOD $ 7.79 $ 7.51 $ 7.98
========== ========== ==========
TOTAL RETURN 1 10.59% -.07% -18.78%
RATIOS AND SUPPLEMENTAL DATA
Net assets, end of period (000s omitted) $ 25,829 $ 31,499 $ 33,482
Ratio of net expenses to average net assets 2,6 1.50% 1.50% 1.09%*
Ratio of gross expenses to average net assets 2,6 2.10% 1.88% 1.80%*
Ratio of net investment income to
average net assets 5.51% 4.32% 4.10%*
Portfolio turnover rate 91% 198% 196%
<CAPTION>
FREMONT BOND FUND Year Ended October 31
-------------------------------------------------------------------------------------------------------------------------
2000 1999 1998 1997 1996
---------- ---------- ---------- ---------- ----------
SELECTED PER SHARE DATA
for one share outstanding during the period
<S> <C> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD $ 9.66 $ 10.44 $ 10.23 $ 9.99 $ 10.13
---------- ---------- ---------- ---------- ----------
INCOME FROM INVESTMENT OPERATIONS
Net investment income .61 .60 .60 .67 .67
Net realized and unrealized gain (loss) .15 (.60) .41 .25 .11
---------- ---------- ---------- ---------- ----------
Total investment operations .76 -- 1.01 .92 .78
---------- ---------- ---------- ---------- ----------
LESS DISTRIBUTIONS
From net investment income (.69) (.60) (.62) (.66) (.70)
From net realized gains -- (.18) (.18) (.02) (.22)
---------- ---------- ---------- ---------- ----------
Total distributions (.69) (.78) (.80) (.68) (.92)
---------- ---------- ---------- ---------- ----------
NET ASSET VALUE, END OF PERIOD $ 9.73 $ 9.66 $ 10.44 $ 10.23 $ 9.99
========== ========== ========== ========== ==========
TOTAL RETURN 1 8.33% .01% 10.31% 9.54% 8.18%
RATIOS AND SUPPLEMENTAL DATA
Net assets, end of period (000s omitted) $ 227,450 $ 184,435 $ 228,001 $ 90,302 $ 70,577
Ratio of net expenses to average net assets 2,7 1.83% .60% .60% .61% .68%
Ratio of gross expenses to average net assets 2,7 1.90% .67% .72% .76% .83%
Ratio of net investment income to average
net assets 6.44% 6.01% 5.92% 6.40% 6.82%
Portfolio turnover rate 176% 298% 256% 191% 154%
</TABLE>
For footnote references, see "Notes to Financial Highlights" on page 78.
The accompanying notes are an integral part of these financial statements.
76 FREMONT MUTUAL FUNDS
<PAGE>
FREMONT MUTUAL FUNDS, INC.
Financial Highlights
<TABLE>
<CAPTION>
FREMONT MONEY MARKET FUND Year Ended October 31
-------------------------------------------------------------------------------------------------------------------------
2000 1999 1998 1997 1996
---------- ---------- ---------- ---------- ----------
SELECTED PER SHARE DATA
for one share outstanding during the period
<S> <C> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
---------- ---------- ---------- ---------- ----------
INCOME FROM INVESTMENT OPERATIONS
Net investment income .06 .05 .05 .05 .05
---------- ---------- ---------- ---------- ----------
Total investment operations .06 .05 .05 .05 .05
---------- ---------- ---------- ---------- ----------
LESS DISTRIBUTIONS
From net investment income (.06) (.05) (.05) (.05) (.05)
From net realized gains -- -- -- -- --
---------- ---------- ---------- ---------- ----------
Total distributions (.06) (.05) (.05) (.05) (.05)
---------- ---------- ---------- ---------- ----------
NET ASSET VALUE, END OF PERIOD $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
========== ========== ========== ========== ==========
TOTAL RETURN 1 5.99% 4.89% 5.45% 5.39% 5.34%
RATIOS AND SUPPLEMENTAL DATA
Net assets, end of period (000s omitted) $ 707,992 $ 760,950 $ 717,291 $ 433,152 $ 329,652
Ratio of net expenses to average net assets 5 .42% .37% .29% .30% .31%
Ratio of gross expenses to average net assets 5 .42% .42% .44% .45% .46%
Ratio of net investment income to
average net assets 5.80% 4.83% 5.33% 5.26% 5.22%
<CAPTION>
FREMONT CALIFORNIA INTERMEDIATE TAX-FREE FUND Year Ended October 31
-------------------------------------------------------------------------------------------------------------------------
2000 1999 1998 1997 1996
---------- ---------- ---------- ---------- ----------
SELECTED PER SHARE DATA
for one share outstanding during the period
<S> <C> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD $ 10.67 $ 11.25 $ 10.99 $ 10.80 $ 10.86
---------- ---------- ---------- ---------- ----------
INCOME FROM INVESTMENT OPERATIONS
Net investment income .50 .51 .51 .51 .52
Net realized and unrealized gain (loss) .21 (.58) .26 .20 (.03)
---------- ---------- ---------- ---------- ----------
Total investment operations .71 (.07) .77 .71 .49
---------- ---------- ---------- ---------- ----------
LESS DISTRIBUTIONS
From net investment income (.51) (.51) (.51) (.51) (.52)
From net realized gains --4 -- -- (.01) (.03)
---------- ---------- ---------- ---------- ----------
Total distributions (.51) (.51) (.51) (.52) (.55)
---------- ---------- ---------- ---------- ----------
NET ASSET VALUE, END OF PERIOD $ 10.87 $ 10.67 $ 11.25 $ 10.99 $ 10.80
========== ========== ========== ========== ==========
TOTAL RETURN 1 6.78% -.68% 7.16% 6.75% 4.63%
RATIOS AND SUPPLEMENTAL DATA
Net assets, end of period (000s omitted) $ 62,800 $ 63,919 $ 64,011 $ 64,309 $ 51,156
Ratio of net expenses to average net assets 2 .49% .45% .47% .49% .51%
Ratio of gross expenses to average net assets 2 .70% .64% .67% .69% .73%
Ratio of net investment income to
average net assets 4.70% 4.59% 4.55% 4.72% 4.86%
Portfolio turnover rate 13% 6% 9% 6% 6%
</TABLE>
For footnote references, see "Notes to Financial Highlights" on page 78.
The accompanying notes are an integral part of these financial statements.
FREMONT MUTUAL FUNDS 77
<PAGE>
FREMONT MUTUAL FUNDS, INC.
Notes to Financial Highlights -- October 31, 2000
The following notes relate to the Financial Highlights of the Funds presented on
pages 73 through 77:
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 in their entirety prior to
March 1, 1999.
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.
The accompanying notes are an integral part of these financial statements.
78 FREMONT MUTUAL FUNDS
<PAGE>
FREMONT MUTUAL FUNDS, INC.
Notes to Financial Statements -- October 31, 2000
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 value. Securities
which are primarily traded on foreign exchanges are generally valued
at the closing values of such securities on their respective exchanges
or the most recent price where no closing value is available.
Securities in the Money Market Fund have a remaining maturity of not
more than 397 days and its entire portfolio has a weighted average
maturity of not more than 90 days. As such, all of the Fund's
securities are valued at amortized cost, which approximates value. If
the Fund's portfolio had a remaining weighted average maturity of
greater than 90 days the portfolio would be stated at value based on
recorded closing sales on a national securities exchange or, in the
absence of a recorded sale, at the mean between the bid and asked
prices.
B. SECURITY TRANSACTIONS
Security transactions are accounted for as of trade date. Realized
gains and losses on security transactions are determined on the basis
of specific identification for both financial statement and Federal
income tax purposes.
C. INVESTMENT INCOME, EXPENSES AND DISTRIBUTIONS
Dividends are recorded on the ex-dividend date, except that certain
dividends from foreign securities in the Global Fund, the
International Growth Fund 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. Return of capital
dividends are included in this.
Distributions to shareholders made by the California Intermediate
Tax-Free Fund during the fiscal year ended October 31, 2000, excluding
capital gains distributions, were of tax-exempt income.
D. INCOME TAXES
The Funds' policy is to comply with the requirements of the Internal
Revenue Code applicable to regulated investment companies and to
distribute all taxable income and net capital gains, if any, to
shareholders. Therefore, no income tax provision is required. Each
Fund is treated as a separate entity in the determination of
compliance with the Internal Revenue Code and distributes taxable
income and net realized gains, if any, in accordance with schedules
described in their respective prospectus. The portfolio of the
California Intermediate Tax-Free Fund is composed solely of issues
that qualify for tax-exempt status for both federal and State of
California income tax purposes.
FREMONT MUTUAL FUNDS 79
<PAGE>
FREMONT MUTUAL FUNDS, INC.
Notes to Financial Statements -- October 31, 2000
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 pay-downs 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 or accumulated realized gains or losses. Any taxable income or
gain remaining at fiscal year end is distributed in the following
year.
For Federal income tax purposes, certain Funds have capital loss
carryovers at October 31, 2000. Capital loss carryovers result when a
fund has net capital losses during a tax year. These are carried over
to subsequent years and may reduce distributions of realized gains in
those years. Unused capital loss carryovers expire in eight years. The
following funds have capital loss carryovers at October 31, 2000:
<TABLE>
<CAPTION>
Emerging Real Estate California
Markets Securities Bond Intermediate
Capital loss carryovers Fund Fund Fund Tax-Free Fund
-------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Expiring in: 2006 $ 1,235,307 $ 2,631,326 $ -- $ --
2007 1,168,895 3,381,180 4,597,359 --
2008 -- 76,549 -- 372,950
$ 2,404,202 $ 6,089,055 $ 4,597,359 $ 372,950
</TABLE>
Capital loss carryovers of $3,783,580 and $1,868,509 for the Emerging
Markets Fund and Bond Fund, respectively, at October 31, 1999, were
utilized in the current year.
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. 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.
80 FREMONT MUTUAL FUNDS
<PAGE>
FREMONT MUTUAL FUNDS, INC.
Notes to Financial Statements -- October 31, 2000
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.
At October 31, 2000, the underlying values for open foreign currency
contracts were as follows:
<TABLE>
<CAPTION>
Net Unrealized
To Receive Foreign Settlement Initial Appreciation/
(To Deliver) Currency Date Value Current Value (Depreciation)
-------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Global Fund (3,900,000) Australian Dollar 11/06/00 $ (2,264,808) $ (2,033,023) $ 231,785
(1,425,400) Australian Dollar 12/21/00 (783,443) (741,755) 41,688
47,000 Australian Dollar 01/18/01 24,834 24,464 (370)
(50,000) Australian Dollar 01/25/01 (26,199) (26,027) 172
(394,189) Australian Dollar 02/12/01 (230,111) (205,213) 24,898
394,189 Australian Dollar 02/12/01 204,998 205,213 215
(8,200,000) British Pound 11/06/00 (12,316,280) (11,891,624) 424,656
6,161,900 British Pound 12/21/00 9,018,310 8,930,811 (87,499)
(348,800) British Pound 12/21/00 (506,810) (505,537) 1,273
(30,000) British Pound 11/29/00 (43,495) (43,460) 36
(17,376) British Pound 11/02/00 (24,927) (25,206) (279)
(28,340) British Pound 11/03/00 (41,122) (41,109) 13
(152,594) British Pound 02/12/01 (227,906) (221,351) 6,555
(39,014) British Pound 06/26/01 (56,391) (56,692) (301)
(12,400,000) Canadian Dollar 11/06/00 (8,344,549) (8,149,349) 195,200
4,289,000 Canadian Dollar 12/21/00 2,871,460 2,821,254 (50,207)
(2,411,500) Canadian Dollar 12/21/00 (1,579,965) (1,586,256) (6,292)
(149,000) Canadian Dollar 12/19/00 (97,665) (98,005) (340)
(32,346) Canadian Dollar 11/02/00 (21,183) (21,257) (73)
(125,787) Canadian Dollar 12/07/00 (83,799) (82,708) 1,091
(271,201) Canadian Dollar 02/09/01 (181,488) (178,608) 2,880
(367,000) Danish Krone 11/07/00 (43,458) (41,871) 1,587
642,000 Danish Krone 11/07/00 72,483 73,245 763
(2,050,000) Danish Krone 12/14/00 (232,590) (234,306) (1,716)
1,580,000 Danish Krone 12/14/00 177,203 180,587 3,384
(61,400,000) Euro 11/06/00 (56,828,460) (52,138,547) 4,689,913
13,000,000 Euro 11/06/00 11,426,100 11,039,106 (386,994)
(719,646) Euro 11/03/00 (610,180) (610,943) (764)
15,849,900 Euro 12/21/00 13,967,242 13,484,778 (482,464)
(947,000) Euro 11/03/00 (830,101) (804,056) 26,045
81,000 Euro 11/03/00 67,607 68,774 1,167
124,000 Euro 11/13/00 109,406 105,327 (4,080)
(4,211,000) Euro 11/20/00 (3,690,702) (3,577,904) 112,798
(652,000) Euro 01/16/01 (547,289) (555,308) (8,019)
(129,694) Euro 11/01/00 (109,055) (110,104) (1,049)
(36,914) Euro 11/02/00 (31,017) (31,338) (322)
260,382 Euro 11/27/00 234,630 221,300 (13,331)
222,971 Euro 11/29/00 198,348 189,520 (8,828)
96,337 Euro 12/07/00 83,799 81,912 (1,887)
</TABLE>
FREMONT MUTUAL FUNDS 81
<PAGE>
FREMONT MUTUAL FUNDS, INC.
Notes to Financial Statements -- October 31, 2000
<TABLE>
<CAPTION>
Net Unrealized
To Receive Foreign Settlement Initial Appreciation/
(To Deliver) Currency Date Value Current Value (Depreciation)
-------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Global Fund 1,023,586 Euro 01/19/01 $ 872,044 $ 871,894 $ (150)
(cont.) 201,084 Euro 02/09/01 181,488 171,423 (10,065)
507,470 Euro 02/12/01 458,017 432,666 (25,352)
(244,756) Euro 02/12/01 (204,998) (208,677) (3,679)
533,919 Euro 02/20/01 528,686 455,351 (73,336)
64,088 Euro 06/26/01 56,391 54,909 (1,482)
2,904,000 Hong Kong Dollar 11/03/00 372,389 372,365 (24)
(2,830,000,000) Japanese Yen 11/06/00 (26,381,304) (25,967,305) 413,999
(749,096,500) Japanese Yen 12/21/00 (7,063,017) (6,938,796) 124,221
108,221,000 Japanese Yen 12/21/00 1,015,659 1,002,439 (13,220)
(101,923,000) Japanese Yen 11/08/00 (949,888) (935,666) 14,222
(57,480,000) Japanese Yen 01/16/01 (537,699) (534,784) 2,915
2,682,851 Japanese Yen 11/01/00 24,722 24,582 (140)
3,978,191 Japanese Yen 11/02/00 36,510 36,450 (60)
2,430,049 Japanese Yen 11/06/00 22,282 22,265 (16)
(24,957,600) Japanese Yen 11/27/00 (234,630) (230,163) 4,467
(21,230,200) Japanese Yen 11/29/00 (198,348) (195,883) 2,465
(93,149,755) Japanese Yen 01/19/01 (872,044) (867,082) 4,962
(55,468,800) Japanese Yen 02/20/01 (528,686) (519,067) 9,619
(24,622,290) Japanese Yen 02/28/01 (238,000) (230,715) 7,285
(11,200,000) New Zealand Dollar 11/06/00 (5,066,492) (4,455,360) 611,132
(112,000) New Zealand Dollar 11/22/00 (45,129) (44,419) 710
(2,183,000) New Zealand Dollar 12/12/00 (879,869) (864,603) 15,266
(1,221,000) Norwegian Krone 12/07/00 (131,079) (131,626) (547)
1,092,000 Norwegian Krone 12/07/00 114,405 117,720 3,314
(2,942,000) Swedish Krona 11/30/00 (294,731) (295,390) (660)
3,429,100 Swiss Franc 12/21/00 1,962,385 1,912,995 (49,390)
(4,825,400) Swiss Franc 12/21/00 (2,805,514) (2,698,014) 107,500
------------
$ 5,855,260
============
International (659,247) Australian Dollar 02/12/01 $ (385,012) $ (343,201) $ 41,811
Growth Fund 659,247 Australian Dollar 02/12/01 348,649 343,201 (5,448)
(242,160) British Pound 02/12/01 (361,837) (351,274) 10,563
(60,916) British Pound 06/26/01 (87,524) (88,519) (995)
(204,219) Canadian Dollar 12/07/00 (137,364) (134,279) 3,085
(444,593) Canadian Dollar 02/09/01 (297,653) (292,800) 4,854
133,876 Euro 11/02/00 112,487 113,654 1,167
104,829 Euro 11/03/00 88,994 88,994 0
340,666 Euro 11/27/00 309,649 289,534 (20,115)
377,506 Euro 11/29/00 340,831 320,870 (19,961)
156,406 Euro 12/07/00 137,364 132,987 (4,377)
1,418,953 Euro 01/19/01 1,207,103 1,208,669 1,566
329,645 Euro 02/09/01 297,653 281,022 (16,631)
827,121 Euro 02/12/01 746,849 705,198 (41,651)
(409,333) Euro 02/12/01 (348,649) (348,995) (345)
787,036 Euro 02/20/01 772,042 671,221 (100,822)
100,067 Euro 06/26/01 87,524 85,735 (1,789)
3,120,000 Hong Kong Dollar 11/03/00 400,087 400,062 (26)
9,988,965 Japanese Yen 11/01/00 92,047 91,524 (523)
(32,652,860) Japanese Yen 11/27/00 (309,649) (301,130) 8,519
(35,944,200) Japanese Yen 11/29/00 (340,831) (331,643) 9,188
(129,132,805) Japanese Yen 01/19/01 (1,207,194) (1,202,029) 5,165
(81,765,120) Japanese Yen 02/20/01 (772,042) (765,143) 6,900
(40,864,725) Japanese Yen 02/28/01 (395,000) (382,909) 12,091
------------
$ (107,774)
============
Bond Fund (10,539,000) Euro 11/20/00 (9,247,551) 8,954,532) $ 293,019
------------
$ 293,019
============
</TABLE>
82 FREMONT MUTUAL FUNDS
<PAGE>
FREMONT MUTUAL FUNDS, INC.
Notes to Financial Statements -- October 31, 2000
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 October 31, 2000, the open futures contracts were as follows:
<TABLE>
<CAPTION>
Net Unrealized
Contracts Expiration Notional Appreciation/
To Buy Date Amount (Depreciation)
---------------------------------------------------------------
<S> <C> <C> <C> <C>
GLOBAL FUND
DAX Index Future 5 Dec '00 $ 500,000 $ (20,925)
December 10-Year U.S.
Treasury Bond 36 Dec '00 3,600,000 31,916
Euro Bond Future 117 Dec '00 11,700,000 44,600
FTSE 100 Index 67 Dec '00 6,700,000 (88,876)
Japanese Bond Future 9 Dec '00 (Yen) 900,000,000 35,581
Municipal Bond Futures 2 Dec '00 $ 200,000 964
Nikkei 300 Index Future (Osaka) 128 Dec '00 (Yen) 12,800,000,000 (242,742)
S&P 500 Index 241 Dec '00 $ 6,025,000 (4,506,088)
S&P/TSE 60 Index 7 Dec '00 175,000 (52,537)
TOPIX Index Future 39 Dec '00 3,900,000 (404,616)
------------
$ (5,202,723)
============
GROWTH FUND
S&P 500 Index 10 Dec '00 $ 250,000 $ 69,250
------------
$ 69,250
============
BOND FUND
December 10-Year U.S.
Treasury Bond 111 Dec '00 $ 11,100,000 $ 88,506
December Treasury Bond 15 Dec '00 1,500,000 1,079
Euro Bond Future 295 Dec '00 29,500,000 16,130
------------
$ 105,715
============
<CAPTION>
Net Unrealized
Contracts Expiration Notional Appreciation/
To Sell Date Amount (Depreciation)
---------------------------------------------------------------
<S> <C> <C> <C> <C>
GLOBAL FUND
UK Gilt 13 Dec '00 (Pound) 1,300,000 $ (23,088)
------------
$ (23,088)
============
BOND FUND
December 5-Year U.S.
Treasury Bond 314 Dec '00 $ 31,400,000 $ (260,472)
UK Bond 49 Dec '00 (Pound) 4,900,000 (70,906)
------------
$ (331,378)
============
</TABLE>
Various U.S. Treasury securities, as footnoted on the Schedule of
Investments, were held by brokers to satisfy the initial margin
requirements related to these contracts.
FREMONT MUTUAL FUNDS 83
<PAGE>
FREMONT MUTUAL FUNDS, INC.
Notes to Financial Statements -- October 31, 2000
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 a decline in the market value of the underlying
security or currency below the exercise price. Over the counter
options have 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 October 31, 2000, all outstanding
repurchase agreements held by the funds had been entered into on
October 31, 2000.
K. REVERSE REPURCHASE AGREEMENTS
During the year ended October 31, 2000, the Fremont Bond Fund entered
into reverse purchase agreements with certain brokers. Reverse
purchase agreements involve the sale of a portfolio-eligible security
by the Fund, coupled with and 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%.
84 FREMONT MUTUAL FUNDS
<PAGE>
FREMONT MUTUAL FUNDS, INC.
Notes to Financial Statements -- October 31, 2000
The difference between the selling price and the repurchase price is
accounted for as interest expense. At October 31, 2000, outstanding
reverse repurchase agreements for the Fremont Bond Fund, which were
collateralized by mortgage-backed securities, were as follows:
<TABLE>
<CAPTION>
Amount of
Reverse
Collateral Repurchase Interest Maturity Cost of Value of
Issuer Counterparty Agreements Rate Date Collateral Collateral
-------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Morgan Stanley
FNMA Dean Witter $14,455,500 6.300% 01/26/01 $15,495,690 $15,182,730
Morgan Stanley
FNR Dean Witter 8,622,000 6.300% 01/26/01 9,681,480 8,903,088
----------- -----------
$23,077,000 $24,085,818
=========== ===========
</TABLE>
For the year ended October 31, 2000, the Fremont Bond Fund had an
average amount outstanding of $34,529,893 and a maximum amount
outstanding of $45,132,000.
L. SWAP AGREEMENTS
During the fiscal year ended October 31, 2000, the Fremont 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, yet 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.
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 if such amount was
terminated on valuation. At October 31, 2000, the Fremont Bond Fund
has a net payable of $155,903 and the Fremont Global Fund has a net
receivable of $7,073 due to swap agreements.
At October 31, 2000, the Funds had the following open swap agreements:
<TABLE>
<CAPTION>
Unrealized
Maturity Appreciation/
Pay Receive Date Notional Amount (Depreciation)
--------------------------------------------------------------------------------------------------------------------
BOND FUND
<S> <C> <C> <C> <C>
Fixed Rate 6.01% 3 Month Euribor 01/04/30 E 400,000 $ (2,400)
Fixed Rate 6.000% 6 Month Libor (Euro) 01/04/09 E 610,000 (8,073)
Fixed Rate 6.175% 6 Month Libor (Euro) 05/22/30 E 460,000 (4,420)
Fixed Rate 6.250% 6 Month Libor Minus .540% (Euro) 01/04/24 E 130,000 2,181
Fixed Rate 1.112% 30 Year USD Swap Spread 02/16/05 $ 5,900,000 (35,022)
Zero Coupon Swap 3 Month Libor 11/15/21 $ 380,000 (7,072)
Zero Coupon Swap 3 Month Libor 11/15/21 $ 890,000 (22,746)
Zero Coupon Swap 3 Month Libor 11/15/21 $ 5,560,000 (78,351)
------------
$ (155,903)
============
GLOBAL FUND
3 Month Libor Fixed Rate 7.2908% 07/21/05 $ 500,000 $ 11,112
3 Month Libor Fixed Rate 6.735% 01/15/06 $ 800,000 (482)
6 Month Libor Fixed Rate 7.010% 09/20/05 $ 800,000 8,546
Fixed Rate 1.31% 6 Month Libor (Yen) 07/14/05 (Yen)78,000,000 (5,115)
Fixed Rate 2.035% 6 Month Libor (Yen) 05/18/10 (Yen)65,000,000 (1,632)
Fixed Rate 5.930% 6 Month Libor (GBP) 08/25/30 (Pound) 100,000 (2,972)
Fixed Rate 6.0135% (CN$) 3 Month Canadian Bank Acceptance (CN$) 01/15/06 CN$ 1,200,000 6,377
Fixed Rate 6.069% 6 Month Libor (Euro) 08/24/30 E 400,000 7,208
Fixed Rate 6.175% 6 Month Libor (Euro) 05/22/30 E 440,000 (5,866)
</TABLE>
FREMONT MUTUAL FUNDS 85
<PAGE>
FREMONT MUTUAL FUNDS, INC.
Notes to Financial Statements -- October 31, 2000
<TABLE>
<CAPTION>
Unrealized
Maturity Appreciation/
Pay Receive Date Notional Amount (Depreciation)
--------------------------------------------------------------------------------------------------------------------
GLOBAL FUND (Cont.)
<S> <C> <C> <C> <C>
Fixed Rate 6.346% (CN$) 3 Month Canadian Bank Acceptance (CN$) 07/19/05 CN$ 1,000,000 (4,247)
Fixed Rate 6.515% (CN$) 3 Month Canadian Bank Acceptance (CN$) 05/10/02 CN$ 1,130,000 (6,122)
Fixed Rate 6.667% (AU$) 6 Month Australian Bank Bill (AU$) 09/20/05 AU$ 1,400,000 266
------------
$ 7,073
============
</TABLE>
M. SHORT SALES
The Global Fund and Bond Fund have entered into short sales
transactions during the fiscal year. A short sale is a transaction in
which a Fund sells securities it does not own in anticipation of a
decline in the market price of the securities. The Fund is obligated
to deliver securities at the market price at the time the short
position is closed. The Fund will have to pay any dividends or
interest payable on the securities until they are replaced. Possible
losses from short sales may be unlimited, whereas losses from
purchases cannot exceed the total amount invested.
Short sales open at October 31, 2000 were as follows:
Total
Shares Value Proceeds
----------------------------------------------------------------------
GLOBAL FUND 1,000,000 FNCL 6.5 11/00 $ 962,188 $ 956,250
1,200,000 U.S. Treasury Note 1,205,250 1,207,192
-----------------------
$2,167,438 $2,163,442
=======================
BOND FUND 5,000,000 UK GILT Treasury $9,199,442 $9,265,212
=======================
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.
86 FREMONT MUTUAL FUNDS
<PAGE>
FREMONT MUTUAL FUNDS, INC.
Notes to Financial Statements -- October 31, 2000
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.
Ratios of expense 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 fiscal year ended October 31, 2000 the Advisor reimbursed
expenses of $165,069, $155,861, $227,551, and $186,053, 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 $290,466, $274,132, $411,806 and $444,121,
respectively, from the International Growth fund, the Emerging Markets
Fund, the U.S. Small Cap Fund and the Real Estate Securities Fund as of
October 31, 2000.
For the Bond Fund, the Advisor has contractually waived 0.05% out of the
0.15% administrative fee beginning on March 1, 1999. For the year ended
October 31, 2000, the Advisor waived administrative fees of $88,951 for the
Bond Fund.
For the California Intermediate Tax-Free Fund, the Advisor has
contractually limited the total operating expenses to .49% of average net
assets beginning March 1, 1999. For the year ended October 31, 2000, the
Advisor reimbursed expenses of $126,281 for the California Intermediate
Tax-Free Fund. The Advisor has not recouped waivers and reimbursements of
$250,727 for the California Intermediate Tax-Free Fund as of October 31,
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 the Fund.
Pursuant to Rule 12b-1 under the Investment Company Act of 1940, the
International Growth Fund, the Emerging Markets Fund, the U.S. Small Cap
Fund and the Real Estate Securities Fund have adopted a plan of
distribution under which the Funds may directly compensate the Advisor for
certain distribution-related expenses. The annual limitation for
compensation to the Advisor pursuant to the plan of distribution is 0.25%
of a Fund's average daily net assets. All payments are reviewed by the
Board of Directors.
FREMONT MUTUAL FUNDS 87
<PAGE>
FREMONT MUTUAL FUNDS, INC.
Notes to Financial Statements -- October 31, 2000
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 fiscal year ended October 31, 2000, follows:
<TABLE>
<CAPTION>
Share Share
Balance Aggregate Aggregate Net Balance Value
October 31, Purchase Sales Realized October 31, October 31,
Issuer 1999 Cost Cost Gain/(Loss) Income 2000 2000
-----------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
Aaon, Inc. -- $11,545,564 $ 2,685,942 $ 270,065 $ -- $ 584,300 $12,343,337
Boston Communications
Group, Inc. 477,200 7,268,732 -- -- -- 1,060,500 25,054,312
California Micro Devices
Corp -- 16,596,860 112,884 (30,816) -- 1,089,500 13,823,031
Cash America International 201,600 10,771,411 -- -- 39,216 1,275,000 6,614,062
COMARCO, Inc. -- 14,288,050 -- -- -- 644,100 12,439,181
Datalink Corp. 305,700 13,567,016 3,012,475 (468,821) -- 768,100 9,217,200
Endocare, Inc. -- 16,315,669 -- -- -- 1,113,700 19,698,569
Exigent International, Inc. -- 2,382,423 -- -- -- 485,710 986,598
Fusion Medical
Technologies, Inc. 78,000 9,982,000 168,213 (204,559) -- 791,100 6,526,575
Lojack Corp. -- 8,189,691 -- -- -- 1,098,300 8,786,400
McNaughton Apparel
Group, Inc. 316,500 2,780,457 340,855 (9,961) -- 509,200 7,001,500
Micro Component
Technology, Inc. -- 5,553,967 -- -- -- 804,600 3,620,700
Modtech Holdings, Inc. 98,000 8,635,802 -- -- -- 1,033,900 10,985,188
Northern Technologies
International Corp. 258,950 642,504 -- -- -- 347,850 2,413,209
Nucentrix Broadband
Networks, Inc. -- 16,949,900 -- -- -- 651,200 14,733,400
Parlex Corp. -- 21,353,988 1,240,402 (2,237,548) -- 529,000 8,464,000
RIT Technologies Ltd. -- 8,580,769 -- -- -- 696,100 6,243,147
Spectrum Control, Inc. -- 12,536,557 1,345,881 271,144 -- 1,045,000 12,931,875
</TABLE>
OTHER RELATED PARTIES
At October 31, 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 56%
International Growth Fund 48%
Emerging Markets Fund 35%
U.S. Small Cap Fund 19%
Growth Fund 17%
Real Estate Securities Fund 8%
Bond Fund 53%
Money Market Fund 88%
California Intermediate Tax-Free Fund 68%
Certain officers and/or directors of the Funds are also officers and/or
directors of the Advisor and/or Fremont Investors, Inc. None of the
officers and/or directors so affiliated receive compensation for services
as officers and/or directors of the Funds.
88 FREMONT MUTUAL FUNDS
<PAGE>
FREMONT MUTUAL FUNDS, INC.
Notes to Financial Statements -- October 31, 2000
3. PURCHASES AND SALES/MATURITIES OF INVESTMENT SECURITIES
Aggregate purchases and aggregate proceeds from sales and maturities of
securities for the fiscal year ended October 31, 2000 were as follows:
Purchases Proceeds
--------- --------
Long-term securities excluding
U.S. Government securities:
Global Fund $570,438,457 $562,660,202
International Growth Fund 55,706,153 32,164,569
Emerging Markets Fund 23,176,787 22,005,444
U.S. Micro-Cap Fund 924,569,929 720,402,385
U.S. Small Cap Fund 104,185,040 80,685,737
Growth Fund 86,630,844 117,717,817
Real Estate Securities Fund 27,217,617 30,345,382
Bond Fund 94,170,649 96,625,159
California Intermediate Tax-Free Fund 8,097,281 12,153,980
Long-term U.S. Government securities:
Global Fund 141,206,248 113,294,777
Bond Fund 401,240,153 339,687,719
Transactions in written put and call options for the fiscal year ended
October 31, 2000 for the Global Fund and the Bond Fund were as follows:
<TABLE>
<CAPTION>
Global Fund Bond Fund
----------- ---------
Amount of Number of Amount of Number of
Premiums Contracts Premiums Contracts
------------------------------------------------
<S> <C> <C> <C> <C>
Options outstanding at October 31, 1999 $ 16,898 27 $ 450,122 1,190
Options sold 149,075 46,024 348,151 192,278
Options cancelled in closing purchase
transactions (16,316) (21,300) (202,641) (110,439)
Options expired prior to exercise (145,599) (20,747) (538,556) (82,837)
Options exercised -- -- -- --
------------------------------------------------
Options outstanding at October 31, 2000 $ 4,058 4,004 $ 57,076 192
================================================
</TABLE>
The following written options were outstanding at October 31, 2000:
<TABLE>
<CAPTION>
Number
of Exercise Expiration
Name of Issuer Contracts Price Date Value
------------------------------------------------------------------------
GLOBAL FUND
<S> <C> <C> <C> <C> <C>
Call Options: March 90 Day Euro Dollar Futures 2 93.25 Mar '01 $ 1,400
February Interest Rate Swap 4,000 6.50% Feb '01 1,358
Put Options: March 90 Day Euro Dollar Futures 2 92.75 Mar '01 25
-------
$ 2,783
=======
BOND FUND
Call Options: March 90 Day Euro Dollar Futures 69 93.25 Mar '01 $48,300
December 10-year U.S. Treasury Bond
Futures 58 103.00 Dec '00 1,813
Put Options: March 90-day Euro Dollar Futures 65 92.75 Mar '01 813
-------
$50,926
=======
</TABLE>
The Global Fund and the Bond Fund received premiums of $4,058 and $57,076
on these contracts and an unrealized gain of $1,275 and $6,150,
respectively. The notional value underlying these contracts for the Global
Fund and the Bond Fund are $410,000 and $393,000, respectively.
FREMONT MUTUAL FUNDS 89
<PAGE>
FREMONT MUTUAL FUNDS, INC.
Notes to Financial Statements -- October 31, 2000
4. 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.
5. UNREALIZED APPRECIATION (DEPRECIATION) -- TAX BASIS
At October 31, 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 $ 798,109,413 $ 71,605,334 $ (67,825,988) $ 3,779,346
International Growth Fund 76,968,052 12,536,402 (8,681,032) 3,855,370
Emerging Markets Fund 14,589,020 890,385 (3,188,152) (2,297,767)
U.S. Micro-Cap Fund 778,252,716 139,891,784 (103,281,403) 36,610,381
U.S. Small Cap 69,424,445 10,943,589 (9,406,488) 1,537,101
Growth Fund 94,572,145 33,726,598 (5,384,602) 28,341,996
Real Estate Securities Fund 28,215,666 970,076 (2,116,666) (1,146,590)
Bond Fund 338,541,381 1,283,611 (6,251,954) (4,968,343)
Money Market Fund 668,616,543 -- -- --
California Intermediate Tax-Free Fund 59,693,462 2,286,411 (77,973) 2,208,438
</TABLE>
6. LINE OF CREDIT
The Investment Company has a Line of Credit Arrangement ("LOC") with State
Street Bank and Trust Company, to be used for extraordinary or emergency
purposes, primarily to cover redemption payments. Each Fund's borrowings
cannot exceed 20% of each Fund's net assets. Combined borrowings of all
Funds cannot exceed the $75 million 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 under the line of credit for the fiscal year ended
October 31, 2000 was as follows:
Average Amount Maximum Amount
Fund Outstanding Outstanding Interest Expense
--------------------------------------------------------------------------
Bond Fund $ 35,699 $2,735,000 $ 722
Emerging Markets Fund 150,437 2,300,000 7,911
CA Tax-Free Fund 107,851 2,679,000 7,110
Money Market Fund 1,270 155,000 75
International Growth Fund 111,644 4,319,000 8,754
Real Estate Fund 35,021 772,700 1,441
Growth Fund 18,680 1,898,000 1,168
Global Fund 11,056 1,908,000 753
$ 27,934
7. 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 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 unrealized
appreciation. The combined net assets of the Fremont International Growth
Fund immediately after the merger were $75,339,690.
90 FREMONT MUTUAL FUNDS
<PAGE>
FREMONT MUTUAL FUNDS, INC.
Tax Designation (unaudited)
In accordance with the Internal Revenue Code, the Funds are making the
following designations (unaudited):
LONG-TERM CAPITAL GAIN DIVIDENDS:
Fremont Global Fund $ 46,198,333
Fremont International Growth Fund 2,461,223
Fremont U.S. Micro-Cap Fund 2,990,755
Fremont U.S. Small Cap Fund 2,076,929
Fremont Growth Fund 6,844,118
Fremont California Intermediate Tax-Free Fund 7,704
CORPORATE DIVIDEND RECEIVED DEDUCTIONS:
Fremont Global Fund 4%
Fremont Growth Fund 83%
Fremont U.S. Micro-Cap Fund 2%
Please refer to the 2000 1099s for purposes of filing tax returns.
FREMONT MUTUAL FUNDS 91
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<PAGE>
Fremont Funds
50 Beale Street, Suite 100
San Francisco, CA 94105
www.fremontfunds.com
Distributed by First Fund Distributors, Inc., San Francisco, CA 94105
BR005a-0012
