<PAGE>
- -------------------------------------------------------------------------------
ANNUAL REPORT, March 31, 1996
[LOGO OF RUSHMORE AMERICAN GAS INDEX FUND, INC.
APPEARS HERE] 4922 Fairmont Avenue, Bethesda, Maryland 20814
(800) 622-1386 (301) 657-1510
- -------------------------------------------------------------------------------
---------------TOP FIVE PERFORMERS------------
(Price Change: April 1, 1995 - March 31, 1996)
<TABLE>
<S> <C>
NoRam Energy Corp. 72.09%
Williams Companies,
Inc. 61.19%
Southern Union Co. 58.45%
The Columbia Gas Sys-
tem, Inc. 54.85%
Washington Energy Co. 53.27%
</TABLE>
- -------------------------------------------------------------------------------
---------------BOTTOM FIVE PERFORMERS---------
(Price Change: April 1, 1995 - March 31, 1996)
<TABLE>
<S> <C>
Niagara Mohawk Power
Corp.* - 51.82%
Southwestern Energy
Co. - 20.00%
Citizens Utilities
Co., Series B - 13.86%
Delta Natural Gas
Co., Inc. - 9.59%
Pacific Gas & Elec-
tric Co. - 1.55%
*Eliminated from
Fund, May 1996.
</TABLE>
- -------------------------------------------------------------------------------
Dear Shareholders:
During the fiscal year which ended on March 31, 1996, the American Gas Index
Fund, Inc. experienced four positive quarters and a total return of 23.46%. A
new high net asset value ("NAV") of $13.54 was achieved on February 13, 1996.
At the end of March, the NAV was $13.25 compared to $11.13 at the beginning of
the period which started on April 1, 1995. This strong performance resulted
from more than 90% of the Fund's portfolio increasing in share value. Two im-
portant additions to the Fund's holdings were Laclede Gas Company and
NGC Corporation.
The Fund's consistent strength during the past four quarters reflected re-
newed confidence expressed by energy and investment analysts in unabated
growth in natural gas consumption. Other factors that had a positive impact
were a rising stock market (as evidenced by the broad market averages), de-
clines in long-term interest rates, healthy natural gas reserves additions,
and the price behavior of competing energy fuels. Also, the market's valuation
of the vast majority of the Fund's investments increased in response to the
various proposals to restructure and partially deregulate the electric utility
industry. Gas distribution and pipeline companies seem to be increasingly at-
tractive investments and merger or acquisition targets. In our opinion, the
Fund continues to be an ideal vehicle to financially participate in the grow-
ing natural gas markets and the restructuring of the energy utilities.
TOTAL RETURN COMPARISON
(April 1, 1995 - March 31, 1996)
[GRAPH OF TOTAL RETURN COMPARISON APPEARS HERE]
The average annual total return was 23.46% for the one-year period, 9.97% for
the five-year period, and 8.97% for the period 5/10/89 (inception) through
March 31, 1996. Returns are historical and include changes in principal and
reinvested dividends and capital gains. Your return and principal will vary and
you may have a gain or loss when you sell shares.
<PAGE>
- -------------------------------------------------------------------------------
As of March 31, 1996, the market value of pipeline companies represented 23%
of the portfolio, diversified/integrated companies comprised 34%, combination
companies made up 20% and natural gas utility companies were 23%.
- ---------------------- ----------------------
AMERICAN GAS INDEX FUND
THREE LARGEST HOLDINGS BY SECTOR
PIPELINE DIVERSIFIED/INTEGRATED
PanEnergy Corp. Occidental
Williams Companies, Inc. Petroleum Corp.
Tenneco, Inc. Consolidated
Natural Gas Co.
COMBINATION NATURAL GAS & ELECTRIC UTILITIES Tenneco, Inc.
Pacific Gas & Electric Co.
Consolidated Edison Co., of NY, Inc. NATURAL GAS
Public Service Enterprise Group, Inc. UTILITIES
Pacific
Enterprises
MCN Corp.
Brooklyn Union Gas
Co.
- ------------------------------------------------------------------------------
We look forward to future growth in the value of the Fund and your continued
participation.
Sincerely,
/s/ Richard J. Garvey
Richard J. Garvey
Chairman
American Gas Index Fund, Inc.
- -------------------------------------------------------------------------------
2
<PAGE>
- --------------------------------------------------------------------------------
AMERICAN GAS INDEX FUND, INC.
STATEMENT OF NET ASSETS
MARCH 31, 1996
<TABLE>
<CAPTION>
MARKET VALUE PERCENT OF
COMMON STOCKS SHARES (NOTE 1) NET ASSETS
------------- ------- ------------ ----------
<S> <C> <C> <C>
Occidental Petroleum Corp. ............... 400,000 $ 10,700,000 5.25%
PanEnergy Corp. .......................... 325,000 10,115,625 4.96%
Williams Companies, Inc. ................. 200,000 10,075,000 4.94%
Enron Corp. .............................. 260,000 9,587,500 4.70%
Consolidated Natural Gas Co. ............. 210,000 9,135,000 4.48%
Tenneco, Inc. ............................ 160,000 8,940,000 4.38%
The Coastal Corp. ........................ 195,000 7,702,500 3.77%
Pacific Gas and Electric Co. ............. 335,000 7,579,375 3.72%
Pacific Enterprises....................... 290,000 7,503,750 3.68%
The Columbia Gas System, Inc. ............ 135,000 6,193,125 3.04%
Sonat, Inc. .............................. 140,000 5,040,000 2.47%
MCN Corp. ................................ 195,000 4,509,375 2.21%
NorAm Energy Corp. ....................... 475,000 4,393,750 2.15%
NICOR, Inc. .............................. 160,000 4,280,000 2.10%
El Paso Energy Co. ....................... 100,000 3,700,000 1.81%
Brooklyn Union Gas Co. ................... 135,000 3,611,250 1.77%
Peoples Energy Corp. ..................... 110,000 3,561,250 1.74%
AGL Resources, Inc. ...................... 180,900 3,324,037 1.63%
National Fuel Gas Co. .................... 95,000 3,289,375 1.61%
Washington Gas Co. ....................... 150,000 3,281,250 1.61%
Questar Corp. ............................ 90,000 2,970,000 1.46%
K N Energy, Inc. ......................... 92,500 2,879,063 1.41%
Consolidated Edison Co. of New York,
Inc. .................................... 85,000 2,709,375 1.33%
Public Service Enterprise Group, Inc. .... 95,000 2,612,500 1.28%
CMS Energy Corp. ......................... 75,000 2,212,500 1.08%
Piedmont Natural Gas Co. ................. 95,000 2,113,750 1.04%
NIPSCO Industries, Inc. .................. 55,000 2,048,750 1.00%
Equitable Resources, Inc. ................ 70,000 2,047,500 1.00%
ONEOK, Inc. .............................. 85,000 2,029,375 0.99%
Indiana Energy, Inc. ..................... 77,500 1,860,000 0.91%
ENSERCH Corp. ............................ 110,000 1,787,500 0.88%
NGC Corp. ................................ 135,000 1,721,250 0.84%
WICOR, Inc. .............................. 50,000 1,687,500 0.83%
Public Service Co. of Colorado............ 47,500 1,674,375 0.82%
Eastern Enterprises....................... 45,000 1,597,500 0.78%
Northwest Natural Gas Co. ................ 50,000 1,587,500 0.78%
PECO Energy Co. .......................... 55,000 1,464,375 0.72%
New Jersey Resources Corp. ............... 50,000 1,443,750 0.71%
Washington Energy Co. .................... 70,000 1,435,000 0.70%
</TABLE>
- --------------------------------------------------------------------------------
3
<PAGE>
- --------------------------------------------------------------------------------
AMERICAN GAS INDEX FUND, INC.
STATEMENT OF NET ASSETS--(CONTINUED)
<TABLE>
MARKET VALUE PERCENT OF
COMMON STOCKS SHARES (NOTE 1) NET ASSETS
------------- ------ ------------ ----------
<S> <C> <C> <C>
Bay State Gas Co. ....................................................... 50,000 $ 1,393,750 0.68%
Southern Union Co.*...................................................... 66,672 1,366,776 0.67%
UtiliCorp United, Inc. .................................................. 47,500 1,359,688 0.67%
Cinergy Corp. ........................................................... 45,000 1,350,000 0.66%
Baltimore Gas and Electric Co. .......................................... 47,500 1,312,187 0.64%
Atmos Energy Corp. ...................................................... 55,000 1,265,000 0.62%
MDU Resources Group, Inc. ............................................... 50,000 1,150,000 0.56%
Enova Corp. ............................................................. 50,000 1,143,750 0.56%
Laclede Gas Co. ......................................................... 50,000 1,137,500 0.56%
Public Service Co. of North Carolina, Inc. .............................. 60,000 960,000 0.47%
Wisconsin Energy Corp. .................................................. 32,500 922,188 0.45%
MidAmerican Energy Co. .................................................. 50,000 893,750 0.44%
Northern States Power Co. ............................................... 17,500 853,125 0.42%
Western Resources, Inc. ................................................. 27,500 838,750 0.41%
SCANA Corp. ............................................................. 30,000 825,000 0.40%
Connecticut Natural Gas Corp. ........................................... 35,000 813,750 0.40%
Yankee Energy System, Inc. .............................................. 35,000 783,125 0.38%
South Jersey Industries, Inc. ........................................... 35,000 748,125 0.37%
Colonial Gas Co. ........................................................ 30,000 705,000 0.35%
Energen Corp. ........................................................... 30,000 656,250 0.32%
Public Service Co. of New Mexico......................................... 35,000 651,875 0.32%
The Montana Power Co. ................................................... 30,000 648,750 0.32%
Rochester Gas and Electric Corp. ........................................ 30,000 648,750 0.32%
L G & E Energy Corp. .................................................... 15,000 643,125 0.32%
UGI Corp. ............................................................... 30,000 637,500 0.31%
Illinova Corp. .......................................................... 22,500 632,812 0.31%
United Cities Gas Co. ................................................... 35,000 621,250 0.30%
Long Island Lighting Co. ................................................ 35,000 616,875 0.30%
DPL, Inc. ............................................................... 25,000 596,875 0.29%
Connecticut Energy Corp. ................................................ 30,000 573,750 0.28%
North Carolina Natural Gas Corp. ........................................ 22,500 565,312 0.28%
NUI Corp. ............................................................... 30,000 558,750 0.27%
Southwest Gas Corp. ..................................................... 31,800 548,550 0.27%
WPS Resources Corp. ..................................................... 15,000 504,375 0.25%
Commonwealth Energy System............................................... 10,500 490,875 0.24%
New York State Electric and Gas Corp. ................................... 20,000 470,000 0.23%
WPL Holdings, Inc. ...................................................... 15,000 463,125 0.23%
TPC Corp.*............................................................... 50,000 443,750 0.22%
Niagara Mohawk Power Corp. .............................................. 65,000 430,625 0.21%
Southwestern Energy Co. ................................................. 35,000 420,000 0.21%
Providence Energy Corp. ................................................. 20,000 365,000 0.18%
</TABLE>
- --------------------------------------------------------------------------------
4
<PAGE>
- --------------------------------------------------------------------------------
AMERICAN GAS INDEX FUND, INC.
STATEMENT OF NET ASSETS--(CONTINUED)
<TABLE>
<CAPTION>
MARKET VALUE PERCENT OF
COMMON STOCKS SHARES (NOTE 1) NET ASSETS
------------- ------ ------------ ----------
<S> <C> <C> <C>
Delmarva Power and Light Co. ............. 15,000 $ 318,750 0.16%
Pennsylvania Enterprises, Inc. ........... 8,000 309,000 0.15%
Fall River Gas Co. ....................... 14,500 308,125 0.15%
Amoco Corp. .............................. 4,000 289,000 0.14%
Mobile Gas Service Corp. ................. 12,000 276,000 0.14%
Orange and Rockland Utilities, Inc. ...... 7,500 269,063 0.13%
Sigcorp, Inc. ............................ 7,500 261,563 0.13%
EnergyNorth, Inc. ........................ 12,500 240,625 0.12%
Central Hudson Gas and Electric Corp. .... 7,500 226,875 0.11%
Sierra Pacific Resources.................. 8,000 201,000 0.10%
Chesapeake Utilities Corp. ............... 11,000 184,250 0.09%
Essex County Gas Co. ..................... 7,000 176,750 0.09%
Corning Natural Gas Corp. ................ 7,000 173,250 0.08%
Valley Resources, Inc. ................... 15,000 170,625 0.08%
Citizens Utilities Co., Series B.......... 15,000 163,125 0.08%
The Berkshire Gas Co. .................... 10,000 157,500 0.08%
Roanoke Gas Co. .......................... 10,000 155,000 0.08%
National Gas and Oil Co. ................. 15,450 145,809 0.07%
Northwestern Public Service Co. .......... 5,000 145,000 0.07%
Entergy Corp. ............................ 5,000 140,000 0.07%
Delta Natural Gas Co., Inc. .............. 7,500 123,750 0.06%
Chevron Corp. ............................ 2,000 112,250 0.06%
Energy West, Inc. ........................ 7,500 71,133 0.03%
Wisconsin Fuel and Light Co. ............. 1,500 60,000 0.03%
Minnesota Power and Light Co. ............ 1,000 27,750 0.01%
Gulfside Industries*...................... 25,000 1,750 0.01%
------------ ------
Total Common Stocks (Cost $152,550,346). 201,121,306 98.59%
------------ ------
Repurchase Agreements
With Paine Webber at 5.375%, dated
3/29/96,
due 4/1/96, collaterized by U.S. Trea-
sury Notes,
due 6/30/97 (Cost $3,146,976).......... 3,146,976 1.54%
------------ ------
Total Investments (Cost $155,697,322)... 204,268,282 100.13%
Liabilities in Excess of Other Assets... (268,624) (0.13)%
------------ ------
Net Assets (Note 5)..................... $203,999,658 100.00%
============ ======
Net Asset Value Per Share (Based on
15,391,065 Shares Outstanding)......... $13.25
============
</TABLE>
*Non-income producing.
See Notes to Financial Statements.
- --------------------------------------------------------------------------------
5
<PAGE>
- --------------------------------------------------------------------------------
AMERICAN GAS INDEX FUND, INC.
STATEMENT OF OPERATIONS
FOR THE YEAR ENDED MARCH 31, 1996
<TABLE>
<S> <C>
INVESTMENT INCOME (Note 1)
Dividends........................................................ $ 8,759,752
Interest......................................................... 175,243
-----------
Total Investment Income........................................ 8,934,995
-----------
EXPENSES
Investment Advisory Fee (Note 2)................................. 783,272
Accounting and Administrative Service Fee (Note 2)............... 685,363
Administrative Fee (Note 2)...................................... 195,818
-----------
Total Expenses................................................. 1,664,453
-----------
NET INVESTMENT INCOME.............................................. 7,270,542
-----------
Net Realized Loss on Investments................................... (1,999,723)
Net Change in Unrealized Appreciation of Investments (Note 4)...... 35,810,773
-----------
NET GAIN ON INVESTMENTS............................................ 33,811,050
-----------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS............... $41,081,592
===========
</TABLE>
See Notes to Financial Statements.
- --------------------------------------------------------------------------------
6
<PAGE>
- --------------------------------------------------------------------------------
AMERICAN GAS INDEX FUND, INC.
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEAR ENDED MARCH 31,
<TABLE>
<CAPTION>
1996 1995
------------ ------------
<S> <C> <C>
FROM INVESTMENT ACTIVITIES
Net Investment Income............................ $ 7,270,542 $ 7,832,535
Net Realized Loss on Investments................. (1,999,723) (8,212,064)
Net Change in Unrealized Appreciation of
Investments..................................... 35,810,773 8,574,990
------------ ------------
Net Increase in Net Assets Resulting from
Operations...................................... 41,081,592 8,195,461
DISTRIBUTIONS TO SHAREHOLDERS
From Net Investment Income (Note 1).............. (7,193,118) (7,827,698)
From Net Realized Gain on Investments............ -- --
FROM SHARE TRANSACTIONS
Net Proceeds from Sales of Shares................ 44,037,602 40,152,519
Reinvestment of Distributions.................... 6,120,501 6,667,885
Cost of Shares Redeemed.......................... (68,590,822) (67,680,680)
------------ ------------
Net Decrease in Net Assets Resulting from Share
Transactions.................................... (18,432,719) (20,860,276)
Total Increase (Decrease) in Net Assets.......... 15,455,755 (20,492,513)
NET ASSETS--Beginning of Year...................... 188,543,903 209,036,416
------------ ------------
NET ASSETS--End of Year............................ $203,999,658 $188,543,903
============ ============
SHARES
Sold............................................. 3,519,043 3,676,255
Issued in Reinvestment of Distributions.......... 492,283 619,298
Redeemed......................................... (5,561,511) (6,212,802)
------------ ------------
Net Decrease..................................... (1,550,185) (1,917,249)
============ ============
</TABLE>
See Notes to Financial Statements.
- --------------------------------------------------------------------------------
7
<PAGE>
- --------------------------------------------------------------------------------
AMERICAN GAS INDEX FUND, INC.
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
FOR THE YEAR ENDED MARCH 31,
-----------------------------------------------------
1996 1995 1994 1993 1992
--------- --------- --------- --------- ---------
<S> <C> <C> <C> <C> <C>
Per Share Operating
Performance:
Net Asset Value--
Beginning of Year.... $ 11.13 $ 11.08 $ 12.17 $ 9.45 $ 10.20
--------- --------- --------- --------- ---------
Net Investment Income. 0.454 0.440 0.410 0.407 0.472
Net Realized and
Unrealized Gains
(Losses) on
Securities........... 2.125 0.050 (1.031) 2.853 (0.758)
--------- --------- --------- --------- ---------
Net Increase
(Decrease) in Net
Asset Value Resulting
from Operations...... 2.579 0.490 (0.621) 3.260 (0.286)
Dividends to
Shareholders......... (0.455) (0.440) (0.406) (0.410) (0.464)
Distributions to
Shareholders from Net
Realized Capital
Gains................ -- -- (0.063) (0.130) --
--------- --------- --------- --------- ---------
Net Increase
(Decrease) in Net
Asset Value.......... 2.12 0.05 (1.09) 2.72 (0.75)
--------- --------- --------- --------- ---------
Net Asset Value--End
of Year.............. $ 13.25 $ 11.13 $ 11.08 $ 12.17 $ 9.45
========= ========= ========= ========= =========
Total Investment Return. 23.46% 4.72% (5.37)% 35.38% (2.89)%
Ratios to Average Net
Assets:
Expenses Less
Reimbursement from
Adviser.............. 0.85% 0.85% 0.84% 0.85% 0.85%
Expenses Before
Reimbursement from
Adviser.............. 0.85% 0.85% 0.84% 0.85% 0.87%
Net Investment Income. 3.71% 4.04% 3.33% 3.82% 4.73%
Supplementary Data:
Portfolio Turnover
Rate................. 10.0% 8.5% 11.4% 21.5% 30.2%
Net Assets at End of
Year (000's omitted). $ 204,000 $ 188,544 $ 209,036 $ 215,557 $ 129,182
Number of Shares
Outstanding at End of
Year (000's omitted). 15,391 16,941 18,858 17,708 13,669
</TABLE>
See Notes to Financial Statements.
- --------------------------------------------------------------------------------
8
<PAGE>
- -------------------------------------------------------------------------------
AMERICAN GAS INDEX FUND, INC.
NOTES TO FINANCIAL STATEMENTS
MARCH 31, 1996
1. SIGNIFICANT ACCOUNTING POLICIES
American Gas Index Fund, Inc. ("Fund") is registered with the Securities
and Exchange Commission under the Investment Company Act of 1940 as an open-
end, diversified investment company. The Fund is authorized to issue
1,000,000,000 shares of $0.001 par value capital stock. The financial
statements have been prepared in conformity with generally accepted accounting
principles which permit management to make certain estimates and assumptions
at the date of the financial statements. The following is a summary of
significant accounting policies which the Fund follows.
(a) Securities listed on stock exchanges are valued at the last sales
price of the applicable exchange. Over-the- Counter securities are valued
at the last sales price. If market quotations are not readily available,
the Board of Directors will value the Fund's securities in good faith.
(b) Security transactions are recorded on the trade date (the date the
order to buy or sell is executed). Interest income is accrued on a daily
basis. Dividend income is recorded on the ex- dividend date. Realized gains
and losses from securities transactions are computed on an identified cost
basis.
(c) Net investment income is computed and dividends are declared
quarterly. Dividends are reinvested in additional shares unless
shareholders request payment in cash. Net realized capital gains, if any,
are distributed annually.
(d) The Fund complies with the provisions of the Internal Revenue Code
applicable to regulated investment companies and distributes all net
investment income to its shareholders. Therefore, no Federal income tax
provision is required.
2. INVESTMENT ADVISORY AND SHAREHOLDER SERVICES
Investment advisory and management services are provided by Money
Management Associates, ("Adviser"). Under an agreement with the Adviser, the
Fund pays a fee for such services at an annual rate of 0.40% of the average
daily net assets of the Fund. Certain Officers and Directors of the Fund are
affiliated with Money Management Associates.
Rushmore Trust and Savings, FSB ("Trust"), a majority-owned subsidiary of
the Adviser, provides transfer agency, dividend- disbursing and other
shareholder services to the Fund. In addition, the Trust serves as custodian
of the Fund's assets and pays the operating expenses of the Fund. For these
services the Trust receives an annual fee of 0.35% of the average daily net
assets of the Fund.
The American Gas Association, (A.G.A.), serves as administrator for the
Fund. As administrator, A.G.A. calculates and maintains the Index and provides
the Fund with information concerning the natural gas industry. For these
services the Fund pays a fee at an annual rate of 0.10% of the average daily
net assets of the Fund.
- -------------------------------------------------------------------------------
9
<PAGE>
- -------------------------------------------------------------------------------
AMERICAN GAS INDEX FUND, INC.
NOTES TO FINANCIAL STATEMENTS--(CONTINUED)
3. SECURITIES TRANSACTIONS
For the year ended March 31, 1996, purchases of securities were
$19,277,012, and sales of securities were $34,465,237. These totals exclude
short-term securities.
4. NET UNREALIZED APPRECIATION/ DEPRECIATION OF INVESTMENTS
As of March 31, 1996, net unrealized appreciation of investments for
Federal income tax purposes was $46,317,903 of which $50,652,658 related to
appreciated investments and $4,334,755 related to depreciated invest- ments.
At March 31, 1996, the cost of the Fund's securities for Federal income tax
purposes was $157,950,379.
5. NET ASSETS
At March 31, 1996 net assets consisted of the following:
<TABLE>
<S> <C>
Paid-in Capital................................................... $169,023,733
Net Unrealized Appreciation of Investments........................ 48,570,960
Accumulated Realized Loss on Investments.......................... (13,816,390)
Undistributed Net Investment Income............................... 221,355
------------
NET ASSETS........................................................ $203,999,658
============
</TABLE>
6. CAPITAL LOSS CARRYOVERS
At March 31, 1996, for Federal income tax purposes, the Fund had capital
loss carry- overs which may be applied against future net taxable realized
gains of each succeeding year until the earlier of its utilization or its
expiration:
<TABLE>
<CAPTION>
Expires March 31,
- -----------------
<S> <C>
2003.............................................................. $ 9,143,031
2004.............................................................. $ 2,420,302
-----------
$11,563,333
===========
</TABLE>
- -------------------------------------------------------------------------------
10
<PAGE>
- -------------------------------------------------------------------------------
INDEPENDENT AUDITORS' REPORT
The Shareholders and Board of Directors of American Gas Index Fund, Inc.
We have audited the statement of net assets of American Gas Index Fund, Inc.,
(the Fund), as of March 31, 1996, the related statements of operations for the
year then ended and changes in net assets for each of the two years in the
period then ended, and the financial highlights for each of the five years in
the period then ended. These financial statements and financial highlights are
the responsibility of the Fund's management. Our responsibility is to express
an opinion on these financial statements and financial highlights based on our
audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to
obtain reasonable assurance about whether the financial statements and
financial highlights are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and disclosures in
the financial statements. Our procedures included confirmation of securities
owned at March 31, 1996 by correspondence with the custodian and brokers. An
audit also includes assessing the accounting principles used and significant
estimates made by management, as well as evaluating the overall financial
statement presentation. We believe that our audits provide a reasonable basis
for our opinion.
In our opinion, such financial statements and financial highlights present
fairly, in all material respects, the financial position of American Gas Index
Fund, Inc. at March 31, 1996, the results of its operations, the changes in
its net assets, and the financial highlights for the respective stated periods
in conformity with generally accepted accounting principles.
Deloitte & Touche LLP
Washington, D.C.
May 3, 1996
- -------------------------------------------------------------------------------
11
<PAGE>
AMERICAN
GAS
INDEX
FUND
- --------------------------------------------------------------------------------
ANNUAL REPORT
MARCH 31, 1996
[LOGO OF RECYCLED PAPER APPEARS HERE]
-------------------------------
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-------------------------------
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