<PAGE>
PACIFIC
EUROPEAN
GROWTH
FUND
[LOGO]
1995
SEMIANNUAL REPORT
<PAGE>
TABLE OF CONTENTS
PACIFIC-EUROPEAN GROWTH FUND
Pacific-European Growth Fund is an open-end mutual fund seeking investment
opportunities primarily in the Pacific Basin and Europe. The fund's investment
objective is long-term capital appreciation; any current income realized is
incidental. To reach its objective, the fund invests primarily in common stocks
of companies in the Pacific Basin (for example, Japan, Hong Kong, Malaysia,
Singapore, South Korea and Thailand) or Europe (including Eastern Europe). Up to
25% of the fund's total assets may also be invested in other areas of the world.
The fund does not invest in common stock of U.S. companies.
SHAREHOLDER SERVICES . . . . . . . . 1
LETTER TO SHAREHOLDERS . . . . . . . 2
INVESTMENTS IN SECURITIES. . . . . . 7
FINANCIAL STATEMENTS AND NOTES . . . 9
MANAGEMENT EXPERIENCE
Piper Capital Management Incorporated has retained an experienced international
money manager, Edinburgh Fund Managers plc, to act as subadviser to the fund.
Edinburgh Fund Managers Group plc is a holding company with three wholly owned
operating subsidiaries. The main operating subsidiary is Edinburgh Fund Managers
plc, which provides investment services to institutional clients and investment
management services to closed- and open-end funds and discretionary funds,
including pension plans and charities. Edinburgh Fund Managers Group plc is a
publicly listed company established in 1969 and a majority-owned subsidiary of
the British Investment Trust plc, a Scottish closed-end investment company which
was founded in 1889. Pacific-European Growth Fund is co-managed by the
following people: Lloyd Beat, account manager; Iain Watt, group chief executive
and fund director; Mike Balfour, chief investment director and fund director;
Jeremy Whitley, Pacific Basin portfolio manager; Christian Albuisson, European
portfolio manager; Miranda Tulloch, Japanese portfolio manager; Robin Watson,
Latin America portfolio manager; Ralph Woodford, United Kingdom large-company
portfolio manager; and Barry Hutcheon, United Kingdom small-company portfolio
manager.
THIS REPORT IS INTENDED FOR SHAREHOLDERS OF PACIFIC-EUROPEAN GROWTH FUND, BUT
MAY ALSO BE USED AS SALES LITERATURE IF PRECEDED OR ACCOMPANIED BY A PROSPECTUS.
THE PROSPECTUS GIVES DETAILS ABOUT THE CHARGES, INVESTMENT RESULTS, RISKS AND
OPERATING POLICIES OF THE FUND.
<PAGE>
SHAREHOLDER SERVICES
AS A SHAREHOLDER IN PIPER GLOBAL FUNDS, YOU HAVE ACCESS TO A FULL RANGE OF
SERVICES AND BENEFITS. CHECK YOUR PROSPECTUS FOR DETAILS ABOUT SERVICES AND ANY
LIMITATIONS THAT MIGHT APPLY TO YOUR FUND.
LOW MINIMUM INVESTMENTS
You can open a Piper mutual fund account with a minimum investment of $250.
QUANTITY DISCOUNTS
If your initial investment exceeds a specified amount, if an investment combined
with the value of your existing Piper shares exceeds a specified amount, or if
your investments combined during a 13-month period exceed a specified amount,
you can reduce or even eliminate the front-end sales charge.
WAIVER OF SALES CHARGES
Money market funds carry no sales charges.*
Sales charges on other Piper funds are waived on purchases of $500,000 or more.
However, a contingent deferred sales charge may be imposed. See your prospectus
for details.
AUTOMATIC REINVESTMENT OF DIVIDENDS
For maximum growth of your assets, you can reinvest dividends and capital gains
automatically in additional shares of your fund without a
sales charge.
CROSS-REINVESTMENT OF DISTRIBUTIONS
Diversify your holdings by reinvesting dividends and capital gains from one
Piper fund to another.
CASH DISTRIBUTIONS
If you prefer, take your dividends and/or capital
gains in cash.
AUTOMATIC MONTHLY MONEY TRANSFER PROGRAM
If you are starting a savings discipline or seeking a convenient way to invest,
you can transfer a minimum of $100 automatically from your bank, savings and
loan or other financial institution into many of the Piper funds.
AUTOMATIC MONTHLY INVESTMENT PROGRAM
You may automatically transfer $25 or more each month from any Piper money
market fund into many other Piper funds.*
EXCHANGE PRIVILEGES
Revise your investment plan without incurring a sales charge by moving assets
from one Piper fund to another with the same fee structure. See your prospectus
for restrictions involving exchanges between funds with different sales charges.
REINVESTMENT PRIVILEGES
If you buy a fund with a sales charge and later redeem your shares, you may
reinvest all or part of the proceeds in shares of that fund or another Piper
fund within 30 days and pay no additional sales charge, subject to each fund's
minimum investment requirements.
SYSTEMATIC WITHDRAWAL PLAN
If your account has a value of $5,000 or more, you can elect to receive periodic
payments of $100 or more, at no cost, excluding money market funds.
INDIVIDUAL RETIREMENT ACCOUNT (IRA)
Defer taxes on earnings in a taxable fund by contributing up to $2,000 annually
to your IRA. Deductibility of contributions depends on your adjusted gross
income and amounts invested in employer-sponsored plans.
SMALL BUSINESS PLANS
If you have a corporation or small business, you can make tax-deductible
contributions to a tax-sheltered retirement account through a qualified plan,
where all earnings grow tax-deferred.
401(K) PLANS
You pay no sales charge if shares are purchased through your employer's 401(k)
plan.
ACCOUNT STATEMENTS
Whenever you add to or withdraw money from your account, you will receive a
monthly statement from Piper Jaffray. Accounts with no activity receive a
quarterly statement instead. Periodic dividend and capital gain distributions,
if any, also appear on your statement.
CONFIRMATION OF TRANSACTIONS
You receive a confirmation statement following every transaction, except in the
money market funds. All transactions are reflected on your account statement.
$25 MILLION SHAREHOLDER PROTECTION
If you have a Piper Jaffray PRIME or PAT account, you are protected up to $25
million in the unlikely event that Piper Jaffray was to fail financially. This
is in addition to basic Securities Investor Protection Corporation (SIPC)
coverage, which protects up to $500,000 in cash and securities ($100,000 in cash
only) per customer. This protection does not cover market loss.
*AN INVESTMENT IN A PIPER MONEY MARKET FUND IS NEITHER INSURED NOR GUARANTEED BY
THE U.S. GOVERNMENT AND THERE CAN BE NO ASSURANCE THAT THE FUND WILL BE ABLE TO
MAINTAIN A STABLE NET ASSET VALUE OF $1 PER SHARE.
1
<PAGE>
PACIFIC-EUROPEAN GROWTH FUND
October 16, 1995
Dear Shareholders:
WORLD MARKETS REMAINED FAIRLY STRONG DURING THE SIX-MONTH PERIOD ENDED AUGUST
31, 1995, DESPITE RELATIVELY SLOW ECONOMIC GROWTH. Pacific-European Growth Fund
responded positively to worldwide events with a net asset value total return of
9.66%, which includes reinvested distributions but not the fund's sales charge.*
This compares to the European, Australian, Far East (EAFE) Index** return of
9.50%. The fund's outperformance of the EAFE Index was largely due to the fund's
underweighting in Japan, which had lower returns than many other regions. During
this period, the best performing region was Latin America which continued to
recover from the economic crisis brought on by last year's devaluation of the
Mexican peso. European markets, particularly the United Kingdom, experienced
strong gains and responded positively to rising interest rates. The Japanese
market continued to weaken until June; however, investor sentiment began to
improve in July as government officials began implementing significant monetary
policies designed to prevent the economy from slipping back into a recession.
THE FUND BENEFITED FROM ITS POSITIONS IN THE PACIFIC BASIN (EXCLUDING JAPAN)
WHERE MARKETS PERFORMED WELL AS INTEREST RATES IN THE UNITED STATES AND SEVERAL
OTHER COUNTRIES REACHED THEIR PEAKS AND STARTED TO DECLINE. Despite a concern
over rising inflation, economic growth in this region remained strong.
Australia, which has recently benefited from a high demand for resources and a
rise in commodity prices, was the region's best performing country. Boosted by
the perception that U.S. interest rates had reached their peak, Hong Kong also
performed well. In addition, the economic slowdown evident in China has been
positive for the Hong Kong market. We believe Hong Kong will continue to offer
value to the fund particularly if U.S. interest rates decline further. The
fund's investments in Taiwan had a slightly negative impact on the fund as this
country's economy suffered due to political tensions with China; however, we
expect the Taiwan market to recover as political tensions subside. We have been
reducing the fund's exposure to the Philippines, Thailand and Malaysia due to
concerns over high inflation in these economies.
RECENT ECONOMIC POLICY ACTIONS BY JAPANESE AUTHORITIES ARE BEGINNING TO ADDRESS
THE SERIOUS ECONOMIC PROBLEMS THE COUNTRY HAS BEEN FACING. Monetary policy has
loosened and the yen has weakened, causing a rally in the stock market. We
believe these developments will relieve deflationary pressures and will lead to
swifter and stronger economic growth. Severe debt problems still exist in Japan,
but authorities
[IAIN WATT PHOTO]
FPO
73%
[MIKE BALFOUR PHOTO]
FPO
40%
Iain Watt (above)
IS GROUP CHIEF EXECUTIVE OF EDINBURGH FUND
MANAGERS PLC AND A CO-MANAGER OF PACIFIC-EUROPEAN
GROWTH FUND.
Mike Balfour (below)
IS CHIEF INVESTMENT DIRECTOR AT EDINBURGH FUND
MANAGERS PLC AND A CO-MANAGER OF PACIFIC-EUROPEAN
GROWTH FUND.
*PAST PERFORMANCE DOES NOT GUARANTEE FUTURE RESULTS. THE RETURN AND PRINCIPAL
VALUE OF YOUR INVESTMENT WILL FLUCTUATE SO THAT FUND SHARES, WHEN SOLD, MAY BE
WORTH MORE OR LESS THAN THEIR ORIGINAL COST.
**THE MORGAN STANLEY CAPITAL INTERNATIONAL (MSCI) EAFE INDEX IS AN UNMANAGED
INDEX OF SECURITIES LISTED ON THE STOCK EXCHANGES OF EUROPE, AUSTRALIA, AND THE
FAR EAST.
2
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PACIFIC-EUROPEAN GROWTH FUND
VALUE OF $10,000 INVESTED
[GRAPH]
If you had invested $10,000 in the fund in April 1990 and held it through August
31, 1995, reinvesting all distributions, your investment would have grown to
$13,669. Pacific-European Growth Fund results reflect the fund's maximum 4%
sales charge, as if it was applied since the fund's inception. This fund
operated as a closed-end fund until August 31, 1992. In comparing the fund to
the EAFE Index and the Lipper Average, keep in mind that the fund's performance
reflects the sales charge, while no such charges are reflected in the index or
the average. Past performance does not guarantee future results.
AVERAGE ANNUAL TOTAL RETURNS+
(THROUGH 8/31/95; INCLUDES 4% SALES CHARGE)
One-Year . . . . . . . . . . . . . . -5.55%
Five-Year. . . . . . . . . . . . . . 8.64%
Since Inception (4/27/90). . . . . . 6.83%
+ DURING THESE PERIODS, PIPER CAPITAL WAIVED CERTAIN EXPENSES. IF THESE EXPENSES
HAD NOT BEEN WAIVED, THE AVERAGE ANNUAL TOTAL RETURNS WOULD HAVE BEEN LOWER.
are taking steps to deal with the issue, such as discussing tax breaks and tax
write-offs. While Japan's new policy actions have helped the country's economy
so far, the country is still facing an economic crisis and further action will
need to be taken to boost the economy and reassure investors. Because we believe
the policies currently being implemented, if continued, will be sufficient to
stimulate the economy and ensure recovery, we increased the fund's weighting in
Japan from 32% at the end of February to 37% by the end of August.
FOLLOWING SLUGGISH PERFORMANCE IN THE BEGINNING OF THE YEAR, EUROPEAN STOCK
MARKETS SHOWED STRENGTH ALONG WITH THE IMPROVING BOND MARKETS. The fund
benefited from its investments in the United Kingdom - its second largest
country weighting - as the area's economic growth forecasts increased and its
economy continued to strengthen. In addition, the fund's investments in
Switzerland, Norway and the Netherlands also proved positive as these countries
experienced strong export and earnings growth. On the other hand, French stock
markets continued to perform poorly as the country suffered from tight monetary
policies and as the newly appointed government quickly lost its credibility.
Because we don't believe conditions in France are likely to improve in the near
future, we have reduced the fund's weighting in this country. Unfortunately,
European economies continue to slow as they are plagued by unfavorable exchange
rates, tight monetary conditions and high interest rates - all of which have
taken their toll on economic growth. However, these factors may result in lower
interest rates which would have a positive impact on these economies.
PACIFIC-EUROPEAN GROWTH FUND
PORTFOLIO COMPOSITION BY REGION
AUGUST 31, 1995
[PIE CHART]
Investment categories reflect percentage of total assets.
See map on page 5 for portfolio composition by country.
EAFE INDEX PORTFOLIO COMPOSITION BY REGION
AUGUST 31, 1995
[PIE CHART]
INVESTMENT CATEGORIES REFLECT PERCENTAGE OF TOTAL ASSETS.
3
<PAGE>
PACIFIC-EUROPEAN GROWTH FUND
THE FUND'S EXPOSURE TO LATIN AMERICA CONTRIBUTED TO ITS POSITIVE PERFORMANCE AS
THE REGION'S ECONOMIES CONTINUED TO RECOVER AND INVESTOR SENTIMENT IMPROVED. The
Mexican government has implemented monetary policies that have begun to
stabilize the peso and reduce inflation. In addition, Mexico is benefiting from
increased tourism as a result of the peso devaluation. Argentina, Chile and
Mexico have been helped by falling interest rates and growing economies which,
in turn, have strengthened investor sentiment. Colombia is also performing well
due to falling interest rates and improving political stability within the
country. We believe this positive trend in Latin America will persist, and we
will likely increase the fund's exposure to this region in the next six months.
LOOKING AHEAD, WE BELIEVE JAPAN REPRESENTS THE BEST OPPORTUNITY FOR PERFORMANCE.
Although the country's economy has begun to recover, we feel the Japanese
markets are still undervalued compared to levels they reached at the beginning
of 1995. In addition, we believe the new economic policy actions should restore
corporate profitability and will have a positive impact on the Japanese stock
market. Therefore, we intend to remain heavily weighted in Japan. The Pacific
Basin markets appear least likely to improve in the near term as inflationary
fears are likely to persist. However, we feel Hong Kong will continue to offer
value and we expect to increase the fund's weighting in this country.
Thank you for your investment in Pacific-European Growth Fund. We remain
committed to providing you with top-quality investment management and service
and look forward to helping you achieve your long-term financial goals.
Sincerely,
/s/ Iain Watt
Iain Watt
Manager, Edinburgh Fund Managers
/s/ Michael Balfour
Mike Balfour
Manager, Edinburgh Fund Managers
/s/ William H. Ellis
William H. Ellis
President, Piper Capital Management
4
<PAGE>
PACIFIC-EUROPEAN GROWTH FUND
PORTFOLIO COMPOSITION BY COUNTRY
AUGUST 31, 1995
(AS A PERCENTAGE OF TOTAL ASSETS)
EUROPE
[MAP]
PACIFIC BASIN
[MAP]
LATIN AMERICA
[MAP]
5
<PAGE>
PACIFIC-EUROPEAN GROWTH FUND
TEN LARGEST HOLDINGS
AUGUST 31, 1995
(PERCENTAGE OF NET ASSETS)
MORI SEIKI
JAPAN, 2.1%
Mori Seiki is a major machine tool manufacturer with a strong global sales
network. The company is experiencing strong order growth as companies increase
their manufacturing related capital expenditures.
MITSUI FUDOSAN
JAPAN, 2.1%
Mitsui Fudosan is one of the largest real estate developers in Japan and a
member of the Mitsui Industrial Group. Despite falling over 45% from their peak,
real estate prices are well positioned to recover in 1995.
NOMURA
JAPAN, 2.0%
Nomura is Japan's largest securities firm. The company's earnings are positioned
to improve significantly as the stock market recovers and trading volumes
increase.
MITSUI TRUST
AND BANKING
JAPAN, 1.8%
Mitsui Trust and Banking was the first trust bank established in Japan. The
company is actively trying to correct the problems they have had with bad loans,
while restructuring and reducing costs.
HONDA MOTOR
JAPAN, 1.7%
Honda, as well as an automobile manufacturer, is the world's leading motorcycle
manufacturer. The company should benefit from reorganization of production
systems and an impressive new model line.
SONY CORPORATION
JAPAN, 1.6%
Sony is a global consumer electronics manufacturer. The company will benefit
from strong product sales worldwide while continuing its restructuring program.
PHILIPPINE LONG DISTANCE TELEPHONE
PHILIPPINES, 1.6%
Philippine Long Distance Telephone is the oldest and largest company offering
telephone services in the Philippines. In order to maintain its dominant
position, the company plans to add two million new telephone lines by the year
2001. This will lead to increased revenue and profit.
ISETAN
JAPAN, 1.6%
Isetan is a Tokyo based department store that targets the younger generation.
The company has one of the lowest exposures to corporate sales, the area hardest
hit by the recession. There are signs that consumption is improving, especially
in the clothing area where the company has a high exposure relative to most
competitors.
NIPPON TELEGRAPH AND TELEPHONE
JAPAN, 1.6%
Nippon Telegraph and Telephone is the largest telecommunications company in
Japan and the second largest in the world. Earnings are improving through
continued cost cutting measures.
KOBE STEEL
JAPAN, 1.5%
Kobe Steel is one of the most diversified blast furnace steel producers in
Japan. Apart from steel, they also have exposure to machinery and other metals,
such as copper and aluminum. The company will benefit not only from a recovery
in steel demand, but also in its other divisions as the economy recovers.
6
<PAGE>
- --------------------------------------------------------------------------------
INVESTMENTS IN SECURITIES (UNAUDITED)
PACIFIC EUROPEAN GROWTH FUND
AUGUST 31, 1995
<TABLE>
<CAPTION>
Number Market
Name of Issuer of Shares Value (a)
- --------------------------------------------------------- --------- ----------
<S> <C> <C>
(PERCENTAGES OF EACH INVESTMENT CATEGORY RELATE TO TOTAL NET ASSETS)
COMMON STOCK (98.1%):
EUROPE (28.1%):
FRANCE (5.3%):
Alcatel Alsthom - telecommunications ................. 17,249 $1,730,029
Elf Aquitaine - oil company .......................... 22,694 1,662,126
Eridania Berghim Say - sugar company ................. 10,130 1,497,915
Pinault Printemps - retail stores .................... 9,500 1,924,480
Societe Generale - bank .............................. 18,740 1,957,578
----------
8,772,128
----------
GERMANY (3.1%):
Deutsche Bank - bank ................................. 35,200 1,631,129
Mannesmann AG - industrial machinery/manufacturing ... 2,770 873,406
Siemens - electronic capital goods ................... 3,100 1,579,734
Veba - electricity and chemical company .............. 27,750 1,060,870
----------
5,145,139
----------
ITALY (1.4%):
Italgas - utilities .................................. 225,800 667,570
Stet-societa Finanz Telefon - telecommunications and
cellular ............................................ 537,050 1,645,599
----------
2,313,169
----------
NETHERLANDS (2.5%):
Amev NV - bank ....................................... 30,500 1,697,537
Klondike Post Netherland NV - telecommunications and
cellular ............................................ 34,000 1,172,628
Vnu-Ver Ned Uitgev Ver Bezit - publishing company .... 11,000 1,304,075
----------
4,174,240
----------
NORWAY (1.0%):
Hafslund 'A' - pharmaceuticals ....................... 64,500 1,547,558
----------
SPAIN (2.0%):
Banco Popular Espanol - bank ......................... 11,060 1,702,353
Repsol Sa - oil and gas .............................. 48,000 1,506,340
----------
3,208,693
----------
SWITZERLAND (2.7%):
Brown Boveri - general engineering ................... 1,310 1,382,325
Nestle-Registered - food and beverage/processing ..... 820 829,871
Roche Holdings - pharmaceutical company 335 2,244,458
----------
4,456,654
----------
UNITED KINGDOM (10.1%):
Abbott Mead Vickers Plc - communications 57,000 396,319
Allied Lyons PLC - brewing and distilling ............ 84,000 655,751
Bluebird Toys PLC - toy manufacturer ................. 119,600 451,055
British Aerospace - defense and aerospace ............ 30,000 307,296
British Petroleum - oil and gas ...................... 180,000 1,352,102
British Telecom - telecommunications ................. 240,000 1,506,682
BTR - conglomerate ................................... 193,700 1,025,122
Cable & Wireless - telecommunications ................ 180,000 1,170,518
Compass Group - contract catering .................... 115,600 733,792
Cowie Group Plc - automotive ......................... 170,000 783,605
</TABLE>
<TABLE>
<CAPTION>
Number Market
Name of Issuer of Shares Value (a)
- --------------------------------------------------------- --------- ----------
<S> <C> <C>
General Electric - electronic capital goods .......... 100,000 $ 484,224
Marks & Spencer - retail-general ..................... 171,900 1,160,531
Sheffield Insulation Group - building materials ...... 80,000 271,910
Smithkline Beecham-CL A - consumer health products ... 165,000 1,531,358
Tesco PLC - retail stores ............................ 248,000 1,256,685
Thorn Emi - hotel and leisure ........................ 70,000 1,605,700
TSB Group - finance .................................. 300,000 1,166,328
Watmoughs - printing and publishing .................. 73,000 490,572
Yorkshire Chemicals - chemicals ...................... 82,500 408,448
----------
16,757,998
----------
Total Europe Common Stocks ......................... 46,375,579
----------
LATIN AMERICA (2.1%):
ARGENTINA (0.2%):
Inversiones Y Representaciones (IRSA) ADR - real
estate .............................................. 15,000 331,875
----------
BRAZIL (0.6%):
Telebras ADR - telecommunications .................... 25,000 1,078,000
----------
CHILE (0.4%):
Five Arrow Chile Warrants - mutual fund .............. 80,000 52,000
Five Arrows Chile Fund - mutual fund ................. 200,000 582,000
----------
634,000
----------
COLUMBIA (0.2%):
Carulla 144A ADS - retail stores ..................... 23,280 285,180
----------
MEXICO (0.7%):
Posadas A - hotel and leisure ........................ 1,416,400(b) 576,048
Telefonos De Mexico - telecommunications 18,000 589,500
----------
1,165,548
----------
Total Latin America Common Stocks .................. 3,494,603
----------
PACIFIC BASIN (67.9%):
AUSTRALIA (1.9%):
Wesfarmers Ltd. - chemicals and plastics ............. 220,000 1,372,239
Western Mining - metal mining ........................ 260,000 1,746,787
----------
3,119,026
----------
HONG KONG (6.0%):
Consolidated Electric Power - electric utility ....... 670,000 1,380,506
Dao Heng Bank Group - bank ........................... 684,574 2,184,340
Esprit Asia Holdings Ltd - retail .................... 2,500,000 968,868
Hutchison Whampoa - diversified holding company ...... 450,000 2,168,325
Sun Hung Kai Properties - property ................... 255,000 1,852,958
Yizheng Chemical - chemicals and plastics . 4,490,000 1,334,065
----------
9,889,062
----------
INDIA (1.7%):
Hindalco Industries ADR - aluminum manufacturer ...... 25,000(b) 903,250
Larsen & Toubro Limited ADS - diverified company ..... 70,000 1,400,350
</TABLE>
SEE ACCOMPANYING NOTES TO INVESTMENTS IN SECURITIES.
7
<PAGE>
- --------------------------------------------------------------------------------
INVESTMENTS IN SECURITIES (UNAUDITED)
PACIFIC EUROPEAN GROWTH FUND
(CONTINUED)
<TABLE>
<CAPTION>
Number Market
Name of Issuer of Shares Value (a)
- --------------------------------------------------------- --------- ----------
<S> <C> <C>
Videocon GDS - electronics ........................... 127,000 $ 463,550
----------
2,767,150
----------
INDONESIA (1.9%):
Gadjah Tunggal - tire manufacturing .................. 1,140,000 829,914
PT Bank International Indonesia - bank ............... 500,000 1,797,926
Pt Indocement - construction materials ............... 160,000 568,276
----------
3,196,116
----------
JAPAN (37.1%):
Daifuku - machine tool manufacturer .................. 122,000 1,629,089
Dainippon Ink & Chemical - chemical and plastics ..... 530,000 2,362,693
Daiwa Securities - finance ........................... 200,000 2,526,835
DDI - telecommunications ............................. 185 1,569,616
Denki Kagaku - chemical and plastics ................. 300,000(b) 1,026,141
Honda Motor - motor vehicles ......................... 158,000 2,823,892
Ichiyoshi Securities - securities broker ............. 125,000 728,006
Isetan - retail stores ............................... 184,000 2,589,287
Kobe Steel - iron/steel and aluminum ................. 979,000(b) 2,544,163
Kumagai Gumi - building materials .................... 400,000 1,918,750
Maeda Road Construction - transportation 90,000 1,756,458
Matsushita Electric Works - electricals .............. 237,000 2,458,734
Mitsui Fudosan - real estate ......................... 265,000 3,429,716
Mitsui Trust & Bank - bank ........................... 284,000 2,946,330
Mori Seiki - machine tool manufacturer ............... 157,000 3,483,334
Nihon Cement Company, LTD - cement manufacturer ...... 344,000 2,208,413
Nihon Jumbo Company - chemicals and plastics ......... 31,000 987,109
Nippon Telegraph and Telephone -
telecommunications .................................. 285 2,587,849
Nippon Yusen - shipping .............................. 392,000 2,403,821
Nissha Printing - print/media publishing ............. 75,000 1,078,527
Nomura - stock broker ................................ 168,000 3,313,235
Sony Corporation - electronics ....................... 49,000 2,687,689
Sumitomo Bank - commercial bank ...................... 120,000 2,231,010
Sumitomo Rubber - tires/auto parts ................... 160,000 1,286,837
Sumitomo Trust & Banking - bank ...................... 185,000 2,527,348
Tokyo Steel Manufacturing - steel manufacturer ....... 84,000 1,622,105
Topy Industries - tires and auto parts ............... 279,000 1,344,060
Toshiba - electronics ................................ 350,000 2,538,134
Tsudakoma - machine tool manufacturer ................ 101,000 700,272
----------
61,309,455
----------
MALAYSIA (3.9%):
Genting Berhad - hotels and leisure .................. 1,875,000 1,661,155
Kim Hin Industries - ceramic tile manufacturer ....... 350,000 1,220,686
Telekom Malaysian - telecommunications ............... 190,000 1,332,932
YTL Corporation - construction ....................... 400,000 2,196,833
----------
6,411,606
----------
PAKISTAN (0.4%):
Pakistan Telecom - telecommunications ................ 6,500(b) 705,250
----------
PHILIPPINES (1.9%):
International Container - port operator .............. 812,500 509,380
</TABLE>
<TABLE>
<CAPTION>
Number Market
Name of Issuer of Shares Value (a)
- --------------------------------------------------------- --------- ----------
<S> <C> <C>
Philippine Long Distance Telephone -
telecommunications and cellular ..................... 41,990 $2,648,675
----------
3,158,055
----------
SINGAPORE (3.4%):
City Development - real estate ....................... 385,280 2,318,677
Development Bank Of Singapore - financial services ... 150,000 1,710,424
United Overseas Bank - bank .......................... 178,200 1,542,803
----------
5,571,904
----------
SOUTH KOREA (2.3%):
Pohang Iron And Steel - steel manufacturer 18,000 1,741,462
Shinhan Bank - commercial bank ....................... 44,977 1,030,158
Shinsegae Department Store - retail stores ........... 13,032(b) 903,408
Yukong - oil company ................................. 3,811 138,008
----------
3,813,036
----------
TAIWAN (1.7%):
China Steel - steel manufacturer ..................... 75,000 1,462,500
Taiwan ROC Fund - mutual fund ........................ 135,000 1,400,625
----------
2,863,125
----------
THAILAND (5.7%):
Bangkok Bank - bank .................................. 150,000 1,110,681
Electricity General Public Company - electric
utility ............................................. 720,000 2,251,353
Electricity General Public Company Rights - electric
utility ............................................. 80,000 0
Finance One Compnay Ltd - finance .................... 134,700 914,058
Land And Houses - residential properties ............. 75,200 1,303,387
Siam Cement - cement manufacturer .................... 21,400 1,404,557
Srithai Superware - consumer durable goods ........... 100,000 695,220
Thai Farmers Bank - bank ............................. 150,000 920,068
Thai Petrochemical - chemicals and plastics 555,000 881,040
----------
9,480,362
----------
Total Pacific Basin Common Stocks .................. 112,284,147
----------
Total Common Stock (98.1%)
(cost: $151,683,388)(c) ........................... 162,154,329
----------
Other assets in excess of liabilities (1.9%) 3,115,940
----------
Net assets (100.0%) ............................... $ 165,270,269
----------
----------
</TABLE>
NOTES TO INVESTMENTS IN SECURITIES:
(A) SECURITIES ARE VALUED IN ACCORDANCE WITH PROCEDURES DESCRIBED IN NOTE 2 TO
THE FINANCIAL STATEMENTS.
(B) PRESENTLY NON-INCOME PRODUCING.
(C) ALSO APPROXIMATES THE COST OF INVESTMENTS FOR FEDERAL INCOME TAX PURPOSES.
THE AGGREGATE GROSS UNREALIZED APPRECIATION AND DEPRECIATION OF INVESTMENTS
IN SECURITIES BASED ON THIS COST WERE AS FOLLOWS:
<TABLE>
<S> <C>
GROSS UNREALIZED APPRECIATION .... $ 20,325,786
GROSS UNREALIZED DEPRECIATION ...... (9,854,845)
----------
NET UNREALIZED APPRECIATION: ... $ 10,470,941
----------
----------
</TABLE>
8
<PAGE>
- --------------------------------------------------------------------------------
FINANCIAL STATEMENTS (UNAUDITED)
STATEMENT OF ASSETS AND LIABILITIES
AUGUST 31, 1995
<TABLE>
<S> <C>
ASSETS:
Investments in securities, at market value* (note 2) ... $ 162,154,329
Cash in bank on demand deposit ........................... 67,138
Net unrealized appreciation of foreign currency contracts
held (notes 2 and 4) ................................... 2,731,443
Receivable for investment securities sold ................ 1,061,058
Receivable for fund shares sold .......................... 42,439
Dividends and accrued interest receivable ................ 629,336
----------------
Total assets ......................................... 166,685,743
----------------
LIABILITIES:
Payable for fund shares redeemed ......................... 364,860
Accrued distribution reimbursement fee ................... 29,467
Accrued investment management fee ........................ 99,146
Other accrued expenses ................................... 922,001
----------------
Total liabilities .................................... 1,415,474
----------------
Net assets applicable to outstanding capital stock ....... $ 165,270,269
----------------
----------------
REPRESENTED BY:
Capital stock - authorized 2 billion shares of $0.01 par
value; outstanding, 11,836,592 shares (note 1) ....... $ 118,366
Additional paid-in capital ............................... 142,856,226
Undistributed net investment income ...................... 681,410
Accumulated net realized gain on investments and foreign
currency transactions .................................. 8,408,201
Unrealized appreciation of investments and translation of
other assets and liabilities denominated in foreign
currencies ............................................. 13,206,066
----------------
Total - representing net assets applicable to
outstanding capital stock ........................ $ 165,270,269
----------------
----------------
Net asset value per share of outstanding capital stock ... $ 13.96
----------------
----------------
*Investments in securities, at identified cost ........... $ 151,683,388
----------------
----------------
</TABLE>
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
9
<PAGE>
- --------------------------------------------------------------------------------
FINANCIAL STATEMENTS (UNAUDITED)
STATEMENT OF OPERATIONS
FOR THE SIX MONTHS ENDED AUGUST 31, 1995
<TABLE>
<S> <C>
INCOME:
Dividends (net of foreign withholding taxes of
$227,823) ............................................ $ 1,892,570
Interest ................................................ 166,820
----------------
Total investment income .............................. 2,059,390
----------------
EXPENSES (NOTE 6):
Investment management fee ................................ 587,141
Distribution reimbursement fee ........................... 266,988
Custodian, accounting and transfer agent fees ............ 398,420
Audit and legal fees ..................................... 40,724
Directors' fees .......................................... 4,920
Reports to shareholders .................................. 52,676
Registration fees ........................................ 23,244
Other expenses ........................................... 3,867
----------------
Total expenses ....................................... 1,377,980
----------------
Net investment income ................................ 681,410
----------------
NET REALIZED AND UNREALIZED GAINS (LOSSES):
Net realized gain (loss) on:
Investments (net of foreign withholding taxes of
$146,761) ............................................ 6,482,646
Foreign currency transactions .......................... (193,849)
----------------
Net realized gain ..................................... 6,288,797
----------------
Net change in unrealized appreciation or depreciation of
investments and on translation of other assets and
liabilities denominated in foreign currencies .......... 8,146,475
----------------
Net gain ............................................... 14,435,272
----------------
Net increase in net assets resulting from
operations ....................................... $ 15,116,682
----------------
----------------
</TABLE>
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
10
<PAGE>
- --------------------------------------------------------------------------------
FINANCIAL STATEMENTS
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
Six Months Year
Ended 8/31/95 Ended
(Unaudited) 2/28/95
---------------- ----------------
<S> <C> <C>
OPERATIONS:
Net investment income (loss) ........................... $ 681,410 (323,920)
Net realized gain on investments and foreign currency
transactions ........................................... 6,288,797 13,540,140
Net change in unrealized appreciation or depreciation of
investments and translation of other assets and
liabilities denominated in foreign currencies .......... 8,146,475 (32,565,743)
---------------- ----------------
Net increase (decrease) in net assets resulting from
operations ........................................... 15,116,682 (19,349,523)
---------------- ----------------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net realized gains .................................... -- (11,890,084)
---------------- ----------------
CAPITAL SHARE TRANSACTIONS:
Proceeds from sale of 1,290,308 and 3,448,028 shares,
respectively ........................................... 17,396,475 50,722,931
Issuance of 774,367 shares for reinvestment of
distributions .......................................... -- 10,384,329
Payments for 1,570,974 and 2,819,369 shares redeemed,
respectively ........................................... (21,635,740) (41,129,910)
---------------- ----------------
Increase (decrease) in net assets from capital share
transactions ......................................... (4,239,265) 19,977,350
---------------- ----------------
Total increase (decrease) in net assets .............. 10,877,417 (11,262,257)
---------------- ----------------
Net assets at beginning of period .......................... 154,392,852 165,655,109
---------------- ----------------
Net assets at end of period .............................. $ 165,270,269 154,392,852
---------------- ----------------
---------------- ----------------
Undistributed net investment income ...................... $ 681,410 --
---------------- ----------------
---------------- ----------------
</TABLE>
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
11
<PAGE>
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
(1) ORGANIZATION
The Pacific-European Growth Fund (the fund) is
a series of Piper Global Funds Inc. (Piper
Global) and is registered under the Investment
Company Act of 1940 (as amended) as a
diversified, open-end management investment
company. The fund is the only series of Piper
Global currently outstanding. On July 6, 1992,
the shareholders approved the conversion of
the fund from a diversified, closed-end
management investment company to a
diversified, open-end "series" management
investment company. The conversion was
implemented on August 31, 1992, when the
registration statement as an open-end fund
became effective. Piper Global is authorized
to issue 100 billion shares of common stock,
two billion of which have been designated for
the fund with a par value of $0.01 per share.
The company's articles of incorporation permit
the board of directors to create additional
funds in the future.
(2) SUMMARY OF
SIGNIFICANT
ACCOUNTING
POLICIES
The significant accounting policies of the
fund are as follows:
INVESTMENTS IN SECURITIES
Investments in securities traded on U.S. or
foreign securities exchanges or included in a
national market system are valued at the last
quoted sales price. In instances where market
quotations are not readily available and in
certain other circumstances, fair value is
determined according to methods selected in
good faith by the board of directors.
Short-term securities with maturities of 60
days or less when acquired or subsequently
within 60 days of maturity are valued at
amortized cost, which approximates market
value.
Securities transactions are accounted for on
the date the securities are purchased or sold.
Realized gains and losses are calculated on
the identified cost basis. Dividend income is
recognized on the ex-dividend date or upon
receipt of ex-dividend notification in the
case of certain foreign securities. Interest
income, including level-yield amortization of
premium and discount, is accrued daily.
FEDERAL TAXES
The fund intends to comply with the
requirements of the Internal Revenue Code
applicable to regulated investment companies
and also intends to distribute all of its
taxable income to shareholders. Therefore, no
income tax provision is required. In addition,
on a calendar-year basis, the fund will
distribute substantially all of its net
investment income and realized gains, if any,
to avoid the payment of any federal excise
taxes.
Net investment income and net realized gains
(losses) differ for financial statement and
tax purposes primarily because of the
recognition of certain foreign currency gains
(losses) as ordinary income (loss) for tax
purposes, the "mark-to-market" of certain
Passive Foreign Investment Companies (PFICs)
for tax purposes, and losses deferred due to
"wash sale" transactions. The character of
distributions made during the year from net
investment income or net realized gains may
differ from their ultimate characterization
for federal income tax purposes. Also, due to
the timing of dividend distributions, the
fiscal year in which amounts are distributed
may differ from the year that the income or
realized gains were recorded by the fund.
DISTRIBUTIONS TO SHAREHOLDERS
The fund will generally pay dividends from net
investment income and realized capital gains,
if any, on an annual basis. These
distributions are recorded as of the close of
business on the ex-dividend date. Such
distributions are payable in cash or
reinvested in additional shares.
12
<PAGE>
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
FOREIGN CURRENCY TRANSLATION AND TRANSACTIONS
Securities and other assets and liabilities
denominated in foreign currencies are
translated into U.S. dollars at the closing
rate of exchange. Foreign currency amounts
related to the purchase or sale of securities
and income and expenses are translated at the
exchange rate on the transaction date. The
fund does not separately identify that portion
of realized and unrealized gain (loss) on
investments arising from changes in the
exchange rates from the portion arising from
changes in the market value of investments.
The fund also may enter into forward foreign
currency exchange contracts for hedging
purposes. The net U.S. dollar value of foreign
currency underlying all contractual
commitments held by the fund and the resulting
unrealized appreciation or depreciation are
determined using foreign currency exchange
rates from independent pricing sources. The
fund is subject to the credit risk that the
other party will not complete the obligations
of the contract.
(3) INVESTMENT
SECURITY
TRANSACTIONS
Purchases of securities and proceeds from
sales, other than temporary investments in
short-term securities, for the six months
ended August 31, 1995, were $59,468,205 and
$54,334,402, respectively.
(4) FORWARD FOREIGN
CURRENCY CONTRACTS
On August 31, 1995, the fund had foreign
currency exchange contracts which obligate the
fund to deliver and receive currencies at
specified future dates. The unrealized
appreciation (depreciation) on these contracts
is included in the accompanying financial
statements. The terms of the open contracts
are as follows:
<TABLE>
<CAPTION>
Settlement Currency to U.S. $ Value Currency to U.S. $ Value Appreciation
Date Be Delivered as of 8/31/95 Be Received as of 8/31/95 (Depreciation)
- -------- --------------- ------------- -------------- ------------- -------------
<S> <C> <C> <C> <C> <C>
9/1/95 1,872,995HKD 241,958 241,817USD 241,817 (141)
9/1/95 2,461,422HKD 317,972 317,882USD 317,882 (90)
9/6/95 6,378,440THB 254,730 254,425USD 254,425 (305)
9/6/95 6,169,819THB 246,399 246,104USD 246,104 (295)
5/22/96 1,085,825,000JPY 11,611,273 13,000,000USD 13,000,000 1,388,727
5/22/96 1,090,050,000JPY 11,656,453 13,000,000USD 13,000,000 1,343,547
------------- ------------- -------------
$24,328,785 $27,060,228 $2,731,443
------------- ------------- -------------
------------- ------------- -------------
HKD = HONG KONG DOLLAR
THB = THAI BAHT
JPY = JAPANESE YEN
USD = U.S. DOLLAR
</TABLE>
(5) FEES AND EXPENSES
The fund has entered into the following
agreement with Piper Capital Management
Incorporated (the adviser):
The investment advisory agreement provides the
adviser with a monthly investment management
fee calculated at the annualized rate of 1% of
the fund's average daily net assets up to $100
million, 0.875% on net assets of $100 million
to $200 million and 0.75% on net assets in
excess of $200 million.
Starting in April 1991, the basic fee has been
subject to a performance adjustment for the
applicable performance period, based on the
performance of the fund relative to the Morgan
Stanley Capital International EAFE Index. Such
performance period has consisted of a rolling
12-month period. For each percentage point the
fund outperforms or underperforms the EAFE
Index during the applicable performance
period, the monthly fee is increased or
decreased by 0.05% (on an annualized basis) up
to a maximum of 1/12 of 0.25% of the fund's
average daily net assets during the month for
which the calculation is made. During the six
months ended August 31, 1995, the performance
adjustment decreased the
13
<PAGE>
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
management fee by $204,564. Edinburgh Fund
Managers plc has been retained by the adviser
as subadviser and is paid a fee equal to 55%
of the investment management fee plus or minus
90% of the performance adjustment.
The fund also pays Piper Jaffray Inc. (the
distributor) a monthly fee in connection with
the servicing of each shareholder account and
in connection with distribution related
service provided to the fund. The monthly fee
is limited to a maximum of 1/12 of 0.50% of
the average daily net assets of the fund. The
0.50% reimbursement fee includes 0.25% payable
as a servicing fee and 0.25% payable as a
distribution fee. For the six months ended
August 31, 1995, Piper Jaffray Inc.
voluntarily agreed to limit the reimbursement
fee to an annual rate of 0.32% of average
daily net assets.
In addition to the investment management fee
and the distribution reimbursement fee, the
fund is responsible for paying most other
operating expenses, including outside
directors' fees and expenses, custodian fees,
registration fees, printing and shareholder
reports, transfer agent fees and expenses,
legal, auditing and accounting services,
insurance and other miscellaneous expenses.
14
<PAGE>
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS
(6) FINANCIAL
HIGHLIGHTS
Per-share data for a share of capital stock
outstanding throughout each period and
selected information for each period are as
follows:
<TABLE>
<CAPTION>
Six Months Year Ended February 28,
Ended 8/31/95 ------------------------------------------------- 4/27/90* to
(Unaudited) 1995 1994 1993 1992 2/28/91
-------------- ---------- ---------- ---------- ---------- -----------
<S> <C> <C> <C> <C> <C> <C>
PER-SHARE DATA
Net asset value, beginning of period ........... $ 12.73 15.44 10.81 10.53 10.18 10.97
-------------- ---------- ---------- ---------- ---------- -----------
Operations
Net investment income (loss).................... .06 (0.03) (0.03) -- 0.06 0.20
Net realized and unrealized gains (losses)...... 1.17 (1.63) 4.72 0.28 0.37 (0.79)
-------------- ---------- ---------- ---------- ---------- -----------
Total from operations......................... 1.23 (1.66) 4.69 0.28 0.43 (0.59)
-------------- ---------- ---------- ---------- ---------- -----------
Distributions to shareholders from:
Net investment income........................... -- -- -- -- (0.06) (0.20)
Return of capital............................... -- -- -- -- (0.02) --
Net realized gains.............................. -- (1.05) (0.06) -- -- --
-------------- ---------- ---------- ---------- ---------- -----------
Total distributions........................... -- (1.05) (0.06) -- (0.08) (0.20)
-------------- ---------- ---------- ---------- ---------- -----------
Net asset value, end of period ................. $ 13.96 12.73 15.44 10.81 10.53 10.18
-------------- ---------- ---------- ---------- ---------- -----------
-------------- ---------- ---------- ---------- ---------- -----------
SELECTED INFORMATION
Total return++.................................... 9.66% (11.09%) 43.45% 2.66% 4.44% (5.03%)
Net assets at end of period (000s omitted) ..... $ 165,270 154,393 165,655 59,791 35,680 34,492
Ratio of expenses to average daily net
assets+++....................................... 1.66% 1.76% 1.81% 2.25% 1.92% 1.77%+
Ratio of net investment income (loss) to average
daily net assets+++............................. .82% (0.19%) (0.29%) 0.03% 0.60% 2.36%+
Portfolio turnover rate (excluding short-term
securities)..................................... 34% 57% 52% 59% 69% 10%
</TABLE>
* COMMENCEMENT OF OPERATIONS.
+ ADJUSTED TO AN ANNUAL BASIS.
++ TOTAL RETURN IS BASED ON THE CHANGE IN NET ASSET VALUE
DURING THE PERIOD, ASSUMES REINVESTMENT OF ALL
DISTRIBUTIONS AND DOES NOT REFLECT A SALES CHARGE.
+++ DURING THE SIX MONTHS ENDED 8/31/95 AND FISCAL 1995 AND
1994, THE FUND'S DISTRIBUTION FEE WAS VOLUNTARILY LIMITED
BY THE DISTRIBUTOR TO 0.32%, 0.28% AND 0.30%, RESPECTIVELY,
OF AVERAGE DAILY NET ASSETS. HAD THE MAXIMUM FEE OF 0.50%
BEEN IN EFFECT, THE RATIOS OF EXPENSES AND NET INVESTMENT
INCOME (LOSS) WOULD HAVE BEEN 1.84%/(0.64%), 1.98%/(0.41%)
AND 2.01%/(0.49%), RESPECTIVELY. DURING 1993, VARIOUS FEES
AND EXPENSES WERE VOLUNTARILY LIMITED OR ABSORBED BY THE
ADVISER AND THE DISTRIBUTOR. HAD THE FUND PAID ALL 1993
EXPENSES, THE RATIOS OF EXPENSES AND NET INVESTMENT INCOME
(LOSS) TO AVERAGE DAILY NET ASSETS WOULD HAVE BEEN 2.59%
AND (0.31%). INCLUDED IN 1993 GROSS EXPENSES WERE EXPENSES
OF APPROXIMATELY 0.32% OF AVERAGE DAILY NET ASSETS THAT
RELATED TO CONVERTING TO AN OPEN-END FUND.
15
<PAGE>
- --------------------------------------------------------------------------------
DIRECTORS AND OFFICERS
<TABLE>
<S> <C>
DIRECTORS Jaye F. Dyer, PRESIDENT, DYER MANAGEMENT COMPANY
William H. Ellis, PRESIDENT, PIPER JAFFRAY COMPANIES INC., PIPER CAPITAL
MANAGEMENT INCORPORATED
Karol D. Emmerich, PRESIDENT, THE PARACLETE GROUP
Luella G. Goldberg, DIRECTOR, TCF FINANCIAL, RELIASTAR FINANCIAL CORP.,
HORMEL FOODS CORP.
George Latimer, DIRECTOR, SPECIAL ACTIONS OFFICE, OFFICE OF THE SECRETARY,
DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
Iain Watt, MANAGING DIRECTOR, EDINBURGH FUND MANAGERS PLC
Michael Balfour, DIRECTOR, EDINBURGH FUND MANAGERS PLC
OFFICERS William H. Ellis, CHAIRMAN OF THE BOARD
Paul A. Dow, PRESIDENT
Robert H. Nelson, VICE PRESIDENT
Nancy S. Olsen, VICE PRESIDENT
David E. Rosedahl, SECRETARY
Charles N. Hayssen, TREASURER
INVESTMENT ADVISER Piper Capital Management Incorporated
222 SOUTH NINTH STREET, MINNEAPOLIS, MN 55402-3804
INVESTMENT SUBADVISER Edinburgh Fund Managers plc
DONALDSON HOUSE, 97 HAYMARKET TERRACE,
EDINBURGH, SCOTLAND EH12 5HD
CUSTODIAN First Trust
180 EAST FIFTH STREET, ST. PAUL, MN 55101
TRANSFER AGENT Investors Fiduciary Trust Company
127 WEST 10TH STREET, KANSAS CITY, MO 64105-1716
LEGAL COUNSEL Dorsey & Whitney P.L.L.P.
220 SOUTH SIXTH STREET, MINNEAPOLIS, MN 55402
</TABLE>
16
<PAGE>
PIPER CAPITAL
MANAGEMENT Bulk Rate
U.S. Postage
PIPER CAPITAL MANAGEMENT INCORPORATED PAID
222 SOUTH NINTH STREET Permit No. 3008
MINNEAPOLIS, MN 55402-3804 Mpls., MN
[LOGO]
PIPER JAFFRAY INC., FUND DISTRIBUTOR AND NASD MEMBER.
THIS DOCUMENT IS PRINTED ON PAPER MADE FROM
100% TOTAL RECOVERED FIBER, INCLUDING 15% POST-CONSUMER WASTE.
311-95 PGPEX-02
