<PAGE>
[Logo] ANNUAL REPORT, MARCH 31, 1997
AMERICAN GAS INDEX FUND, INC.
4922 FAIRMONT AVENUE, BETHESDA, MARYLAND 20814
(800) 622-1386 (301) 657-1510
- --------------------------------------------------------------------------------
Dear Shareholders:
The total return for the Fund's fiscal year ended March 31, 1997 was 15.60%
consisting of a price return of 12.00% and income return of 3.60%. The first
three quarters were positive. After reaching an all time high net asset value of
$15.68 on January 17, 1997, the Fund's performance weakened in the fourth fiscal
quarter. This dip in performance reflected general market conditions rather than
any change in positive gas industry fundamentals. Sixty percent of the Fund's
holdings increased in value during the fiscal year including 90% of the largest
positions. There were no major changes in the Fund's holdings except for those
necessitated by merger and acquisition activity.
The outlook for favorable publicity predicting increased natural gas consumption
remains strong. Recent regulatory pronouncements on revisited clean air
standards are a strong incentive for gas usage in electric power generation and
industrial applications. In addition, the regulatory restructuring of electric
power generation and transmission seems to indicate that as nuclear power plants
are retired after their 40 year licenses expire, gas usage will get a further
boost for purely economic advantages plus less political challenges. Gas supply
and delivery are being enhanced by new pipeline capacity, robust exploration and
production and expanded gas storage facilities. Merger and acquisition activity
<TABLE>
<S> <C>
TOP FIVE PERFORMERS
(PRICE CHANGE: APRIL 1, 1996 - MARCH 31, 1997)
Noram Energy Corp. 58.11%
El Paso Energy Corp. 53.04%
Sonat, Inc. 51.39%
TPC Corp. 50.70%
PanEnergy Corp. 38.55%
</TABLE>
<TABLE>
<S> <C>
BOTTOM FIVE PERFORMERS
(PRICE CHANGE: APRIL 1, 1996 - MARCH 31, 1997)
PECO Energy Co. -23.47%
WPS Resources Corp. -22.68%
Illinova Corp. -18.67%
Wisconsin Energy Corp. -13.66%
Delmarva Power & Light Co. -13.53%
</TABLE>
TOTAL RETURN COMPARISON
(APRIL 1, 1996 - MARCH 31, 1997)
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<S> <C> <C> <C>
Dow Jones
American Gas Index Fund Dow Jones Industrials Utilities S&P 500
15.60% 19.74% 8.34% 19.82%
</TABLE>
The average annual total return was 15.60% for the one-year period, 13.87% for
the five-year period, and 9.79% for the period 5/10/89 (inception) through
March 31, 1997. 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>
is continuing to strengthen the attractiveness of the Fund's portfolio.
Investing in companies involved in natural gas transmission and distribution,
through the American Gas Index Fund, is an ideal way to financially participate
in this dynamic industry.
According to the American Gas Association, the market value of pipeline
companies represented 27% of the portfolio, diversified/integrated companies
comprised 31%, combination companies made up 18% and natural gas utility
companies were 24%.
<TABLE>
<S> <C>
AMERICAN GAS INDEX FUND
THREE LARGEST HOLDINGS BY SECTOR
NATURAL GAS UTILITIES PIPELINE
Pacific Enterprises PanEnergy Corp.
NICOR, Inc. Enron Corp.
MCN Energy Group, Inc. The Williams Companies, Inc.
</TABLE>
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
NATURAL GAS
UTILITIES PIPELINE COMBINATION DIVERSIFIED
<S> <C> <C> <C>
24% 27% 18% 31%
</TABLE>
<TABLE>
<S> <C>
DIVERSIFIED/INTEGRATED COMBINATION NATURAL GAS &
Occidental Petroleum Corp. ELECTRIC UTILITIES
Consolidated Natural Gas Co. PG&E Corp.
The Columbia Gas System, Inc. CMS Energy Corp.
Consolidated Edison Co. of NY, Inc.
</TABLE>
We look forward to future growth in the value of the Fund and your continued
participation.
Sincerely,
[SIG]
Richard J. Garvey
Chairman
American Gas Index Fund, Inc.
2
<PAGE>
AMERICAN GAS INDEX FUND, INC.
STATEMENT OF NET ASSETS
MARCH 31, 1997
<TABLE>
<CAPTION>
MARKET VALUE PERCENT OF
SHARES (NOTE 1) NET ASSETS
------- ------------- ----------
<S> <C> <C> <C>
COMMON STOCKS
PanEnergy Corp ......................... 250,000 $ 10,781,250 5.06%
Occidental Petroleum Corp. ............. 425,000 10,465,625 4.91%
Enron Corp. ............................ 275,000 10,450,000 4.90%
The Williams Companies, Inc. ........... 230,000 10,235,000 4.80%
Consolidated Natural Gas Co. ........... 200,000 10,075,000 4.73%
El Paso Energy Co. ..................... 175,000 9,909,375 4.65%
The Coastal Corp. ...................... 175,000 8,400,000 3.94%
The Columbia Gas System, Inc. .......... 145,000 8,391,875 3.94%
Pacific Enterprises .................... 250,000 7,562,500 3.55%
Sonat, Inc. ............................ 135,000 7,357,500 3.45%
PG&E Corp. ............................. 300,000 7,050,000 3.31%
NorAm Energy Corp. ..................... 475,000 6,946,875 3.26%
NGC Corp. .............................. 390,000 6,142,500 2.88%
NICOR, Inc. ............................ 145,000 4,640,000 2.18%
MCN Energy Group Inc. .................. 160,000 4,500,000 2.11%
National Fuel Gas Co. .................. 90,000 3,847,500 1.81%
Brooklyn Union.......................... 120,000 3,300,000 1.55%
KN Energy, Inc. ........................ 90,000 3,555,000 1.67%
Peoples Energy Corp. ................... 100,000 3,312,500 1.55%
AGL Resources, Inc. .................... 170,000 3,123,750 1.47%
Washington Gas Light Co. ............... 135,000 3,037,500 1.43%
Questar Corp. .......................... 80,000 2,870,000 1.35%
CMS Energy Corp. ....................... 75,000 2,465,625 1.16%
Consolidated Edison Co. of New York,
Inc. ................................. 80,000 2,400,000 1.13%
Public Service Enterprise Group,
Inc. ................................. 90,000 2,362,500 1.11%
Equitable Resources, Inc. .............. 70,000 2,143,750 1.01%
Piedmont Natural Gas Co., Inc. ......... 90,000 2,070,000 0.97%
ENSERCH Corp. .......................... 100,000 2,050,000 0.96%
NIPSCO Industries, Inc. ................ 50,000 1,962,500 0.93%
ONEOK, Inc. ............................ 75,000 1,950,000 0.92%
Public Service Co. of Colorado ......... 45,000 1,743,750 0.82%
Indiana Energy, Inc. ................... 70,000 1,723,750 0.81%
WICOR, Inc. ............................ 50,000 1,700,000 0.80%
Northwest Natural Gas Co. .............. 65,000 1,592,500 0.75%
Cinergy Corp. .......................... 40,000 1,365,000 0.64%
Southwest Gas Corp. .................... 75,000 1,303,125 0.61%
Atmos Energy Corp. ..................... 50,000 1,268,750 0.60%
New Jersey Resources Corp. ............. 45,000 1,282,500 0.60%
Puget Sound Energy Co. ................. 50,000 1,262,500 0.59%
Eastern Enterprises .................... 40,000 1,235,000 0.58%
</TABLE>
3
<PAGE>
AMERICAN GAS INDEX FUND, INC.
STATEMENT OF NET ASSETS -- (CONTINUED)
<TABLE>
<CAPTION>
MARKET VALUE PERCENT OF
SHARES (NOTE 1) NET ASSETS
------- ------------- ----------
COMMON STOCKS (CONTINUED)
<S> <C> <C> <C>
Southern Union Co.* .................... 50,000 $ 1,143,750 0.54%
UtiliCorp United, Inc. ................. 45,000 1,147,500 0.54%
Baltimore Gas and Electric Co. ......... 42,500 1,136,875 0.53%
Enova Corp. ............................ 50,000 1,100,000 0.52%
Public Service Co. of North Carolina,
Inc. ................................. 60,000 1,072,500 0.50%
Laclede Gas Co. ........................ 50,000 1,043,750 0.49%
Bay State Gas Co. ...................... 40,000 1,025,000 0.48%
PECO Energy Co. ........................ 50,000 1,018,750 0.48%
Citizens Utilities Co., Series B ....... 75,000 890,625 0.42%
MDU Resources Group, Inc. .............. 40,000 870,000 0.41%
Long Island Lighting Co. ............... 35,000 840,000 0.39%
Northern States Power Co. .............. 17,500 829,063 0.39%
Western Resources, Inc. ................ 27,500 825,000 0.39%
MidAmerican Energy Holdings Co. ........ 47,500 813,437 0.38%
United Cities Gas Co. .................. 35,000 805,000 0.38%
SCANA Corp. ............................ 30,000 761,250 0.36%
Energen Corp. .......................... 25,000 746,875 0.35%
TPC Corp.* ............................. 55,000 735,625 0.35%
Wisconsin Energy Corp. ................. 30,000 735,000 0.34%
Yankee Energy System, Inc. ............. 30,000 660,000 0.31%
North Carolina Natural Gas Corp. ....... 20,000 642,500 0.30%
Connecticut Energy Corp. ............... 27,500 615,312 0.29%
NUI Corp. .............................. 30,000 618,750 0.29%
CTG Resources, Inc. .................... 27,500 605,000 0.28%
L G & E Energy Corp. ................... 25,000 603,125 0.28%
The Montana Power Co. .................. 27,500 591,250 0.28%
South Jersey Industries, Inc. .......... 28,200 602,775 0.28%
UGI Corp. .............................. 25,000 593,750 0.28%
Colonial Gas Co. ....................... 27,500 570,625 0.27%
DPL, Inc. .............................. 22,500 542,813 0.25%
Illinova Corp. ......................... 22,500 514,688 0.24%
Public Service Co. of New Mexico ....... 27,500 474,375 0.22%
Commonwealth Energy System ............. 20,000 417,500 0.20%
New York State Electric and Gas
Corp. ................................ 20,000 432,500 0.20%
Rochester Gas and Electric Corp. ....... 20,000 380,000 0.18%
Pennsylvania Enterprises, Inc. ......... 8,000 359,000 0.17%
Southwestern Energy Co. ................ 25,000 334,375 0.16%
WPL Holdings, Inc. ..................... 12,500 343,750 0.16%
Providence Energy Corp. ................ 17,500 310,625 0.15%
WPS Resources Corp. .................... 12,500 325,000 0.15%
Mobile Gas Service Corp. ............... 11,000 305,250 0.14%
SEMCO Energy, Inc. ..................... 16,500 305,250 0.14%
</TABLE>
4
<PAGE>
AMERICAN GAS INDEX FUND, INC.
STATEMENT OF NET ASSETS -- (CONTINUED)
<TABLE>
<CAPTION>
MARKET VALUE PERCENT OF
SHARES (NOTE 1) NET ASSETS
------- ------------- ----------
COMMON STOCKS (CONTINUED)
<S> <C> <C> <C>
Delmarva Power and Light Co. ........... 15,000 $ 275,625 0.13%
Orange and Rockland Utilities, Inc. .... 7,500 265,312 0.12%
SIGCORP, Inc. .......................... 11,250 262,969 0.12%
Central Hudson Gas and Electric
Corp. ................................ 7,000 230,125 0.11%
EnergyNorth, Inc. ...................... 10,000 217,500 0.10%
Sierra Pacific Resources ............... 7,000 205,625 0.10%
Northwestern Public Service Co. ........ 5,000 190,000 0.09%
Chesapeake Utilities Corp. ............. 10,000 173,750 0.08%
Fall River Gas Co. ..................... 11,000 176,000 0.08%
Essex County Gas Co. ................... 6,000 145,500 0.07%
Valley Resources, Inc. ................. 12,500 145,313 0.07%
Entergy Corp. .......................... 5,000 122,500 0.06%
National Gas and Oil Co. ............... 15,000 135,000 0.06%
Roanoke Gas Co. ........................ 7,500 127,500 0.06%
The Berkshire Gas Co. .................. 7,500 114,375 0.05%
Corning Natural Gas Corp. .............. 5,000 105,000 0.05%
Delta Natural Gas Co., Inc. ............ 6,500 115,375 0.05%
Energy West, Inc. ...................... 7,500 64,687 0.03%
Minnesota Power and Light Co. .......... 1,000 27,875 0.01%
Virginia Gas Co. ....................... 2,500 24,375 0.01%
------------- ----------
Total Common Stocks (Cost
$145,478,073) ........................ 209,647,619 98.40%
------------- ----------
REPURCHASE AGREEMENTS
With Paine Webber at 6.25%, dated
3/31/97, due 4/1/97, collaterized by
U.S. Treasury Notes, due 12/31/97
(Cost $5,094,849) .................... 5,094,849 2.39%
------------- ----------
TOTAL INVESTMENTS (COST
$150,572,922) ........................ 214,742,468 100.79%
LIABILITIES IN EXCESS OF OTHER
ASSETS ............................... (1,684,492) (0.79)%
------------- ----------
NET ASSETS (NOTE 5) .................... $213,057,976 100.00%
------------- ----------
------------- ----------
NET ASSET VALUE PER SHARE (BASED ON
14,352,645 SHARES OUTSTANDING) ....... $14.84
-------------
-------------
</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, 1997
<TABLE>
<S> <C>
INVESTMENT INCOME (Note 1)
Dividends...................................................... $ 8,131,193
Interest....................................................... 322,584
-----------
Total Investment Income...................................... 8,453,777
-----------
EXPENSES
Investment Advisory Fee (Note 2)............................... 863,761
Accounting and Administrative Service Fee (Note 2)............. 755,792
Administrative Fee (Note 2).................................... 215,941
-----------
Total Expenses............................................... 1,835,494
-----------
NET INVESTMENT INCOME............................................ 6,618,283
-----------
Net Realized Gain on Investments................................. 8,513,880
Net Change in Unrealized Appreciation of Investments (Note 4).... 15,598,586
-----------
NET GAIN ON INVESTMENTS.......................................... 24,112,466
-----------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS............. $30,730,749
-----------
-----------
</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>
1997 1996
------------- -------------
<S> <C> <C>
FROM INVESTMENT ACTIVITIES
Net Investment Income........................... $ 6,618,283 $ 7,270,542
Net Realized Gain (Loss) on Investments......... 8,513,880 (1,999,723)
Net Change in Unrealized Appreciation of
Investments................................... 15,598,586 35,810,773
------------- -------------
Net Increase in Net Assets Resulting from
Operations.................................. 30,730,749 41,081,592
------------- -------------
DISTRIBUTIONS TO SHAREHOLDERS
From Net Investment Income (Note 1)............. (6,785,371) (7,193,118)
From Net Realized Gain on Investments........... -- --
------------- -------------
Total Distributions to Shareholders........... (6,785,371) (7,193,118)
------------- -------------
FROM SHARE TRANSACTIONS
Net Proceeds from Sales of Shares............... 45,036,144 44,037,602
Reinvestment of Distributions................... 5,996,997 6,120,501
Cost of Shares Redeemed......................... (65,920,201) (68,590,822)
------------- -------------
Net Decrease in Net Assets Resulting from
Share Transactions.......................... (14,887,060) (18,432,719)
------------- -------------
TOTAL INCREASE IN NET ASSETS................... 9,058,318 15,455,755
NET ASSETS -- Beginning of Year................... 203,999,658 188,543,903
------------- -------------
NET ASSETS -- End of Year......................... $213,057,976 $203,999,658
------------- -------------
------------- -------------
SHARES
Sold............................................ 3,081,033 3,519,043
Issued in Reinvestment of Distributions......... 414,751 492,283
Redeemed........................................ (4,534,204) (5,561,511)
------------- -------------
Net Decrease.................................. (1,038,420) (1,550,185)
------------- -------------
------------- -------------
</TABLE>
See Notes to Financial Statements.
7
<PAGE>
AMERICAN GAS INDEX FUND, INC.
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
FOR THE YEAR ENDED MARCH 31,
----------------------------------------------------
1997 1996 1995 1994 1993
----------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C>
PER SHARE OPERATING PERFORMANCE:
Net Asset Value -- Beginning of Year................................ $ 13.25 $ 11.13 $ 11.08 $ 12.17 $ 9.45
----------- -------- -------- -------- --------
Income from Investment Operations:
Net Investment Income............................................. 0.448 0.454 0.440 0.410 0.407
Net Realized and Unrealized Gains (Losses) on Securities.......... 1.605 2.125 0.050 (1.031) 2.853
----------- -------- -------- -------- --------
Total from Investment Operations................................ 2.053 2.579 0.490 (0.621) 3.260
----------- -------- -------- -------- --------
Distributions to Shareholders:
From Net Investment Income........................................ (0.459) (0.455) (0.440) (0.406) (0.410)
From Net Realized Capital Gains................................... -- -- -- (0.063) (0.130)
----------- -------- -------- -------- --------
Total Distributions to Shareholders............................. (0.459) (0.455) (0.440) (0.469) (0.540)
----------- -------- -------- -------- --------
Net Increase (Decrease) in Net Asset Value.......................... 1.59 2.12 0.05 (1.09) 2.72
----------- -------- -------- -------- --------
Net Asset Value -- End of Year...................................... $ 14.84 $ 13.25 $ 11.13 $ 11.08 $ 12.17
----------- -------- -------- -------- --------
----------- -------- -------- -------- --------
TOTAL INVESTMENT RETURN............................................... 15.60% 23.46% 4.72% (5.37)% 35.38%
RATIOS TO AVERAGE NET ASSETS:
Expenses............................................................ 0.85% 0.85% 0.85% 0.84% 0.85%
Net Investment Income............................................... 3.06% 3.71% 4.04% 3.33% 3.82%
SUPPLEMENTARY DATA:
Portfolio Turnover Rate............................................. 8.2% 10.0% 8.5% 11.4% 21.5%
Net Assets at End of Year (000's omitted)........................... $213,058 $204,000 $188,544 $209,036 $215,557
Number of Shares Outstanding at End of Year (000's omitted)......... 14,353 15,391 16,941 18,858 17,708
Average Commission Rate Paid........................................ $0.0439(A) -- -- -- --
</TABLE>
- ------------------------------
(A) For fiscal years beginning on or after September 1, 1995, a fund is required
to disclose its average commission rate per share for security trades on
which commissions are charged. This amount may vary from period to period
depending on the mix of trades executed in various markets where trading
practices and commission rate structures may differ.
See Notes to Financial Statements.
8
<PAGE>
AMERICAN GAS INDEX FUND, INC.
NOTES TO FINANCIAL STATEMENTS
MARCH 31, 1997
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. Generally short-term capital
gains are distributed quarterly and long-term 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 FEES AND OTHER TRANSACTIONS WITH AFFILIATES
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.
9
<PAGE>
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.
3. SECURITIES TRANSACTIONS
For the year ended March 31, 1997, purchases of securities were $17,177,954, and
sales of securities were $32,763,920. These totals exclude short-term
securities.
4. NET UNREALIZED APPRECIATION/DEPRECIATION OF INVESTMENTS
As of March 31, 1997, net unrealized appreciation of investments for Federal
income tax purposes was $62,218,810 of which $63,693,208 related to appreciated
investments and $1,474,398 related to depreciated investments. At March 31,
1997, the cost of the Fund's securities for Federal income tax purposes was
$152,523,658.
5. NET ASSETS
At March 31, 1997 net assets consisted of the following:
<TABLE>
<S> <C>
Paid-in-Capital.......................................................... $154,136,673
Net Unrealized Appreciation of Investments............................... 64,169,546
Accumulated Realized Loss on Investments................................. (5,302,510)
Undistributed Net Investment Income...................................... 54,267
-------------
NET ASSETS............................................................... $213,057,976
-------------
-------------
</TABLE>
6. CAPITAL LOSS CARRYOVERS
At March 31, 1997, 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............................................................. $ 931,472
2004............................................................. 2,420,302
-----------
$ 3,351,774
-----------
-----------
</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, 1997, 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, 1997 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, 1997, 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 2, 1997
11
<PAGE>
[Logo]
AMERICAN GAS INDEX FUND
-------------------------------------------------------
Annual Report
March 31, 1997
