NOTE
THE PREVIOUS N30-D FILING AS OF 02-28-00 [ACCESSION NUMBER 897101-00-194]
WAS FILED IN ERROR BY USING THE INCORRECT CORPORATION AND CIK NUMBER
INVESTMENT ADVISER
Jundt Associates, Inc.
1550 Utica Avenue South
Suite 950
Minneapolis, MN 55416
DISTRIBUTOR
U.S. Growth Investments, Inc.
1550 Utica Avenue South
Suite 935
Minneapolis, MN 55416
ADMINISTRATOR
Princeton Administrators, L.P.
P.O. Box 9095
Princeton, NJ 08543-9095
TRANSFER AGENT
National Financial Data Services
P.O. Box 219168
Kansas City, MO 64121-9168
1-800-370-0612
CUSTODIAN
Norwest Bank Minnesota, N.A.
Sixth & Marquette
Minneapolis, MN 55479
INDEPENDENT AUDITORS
KPMG LLP
4200 Norwest Center
90 South Seventh Street
Minneapolis, MN 55402
LEGAL COUNSEL
Faegre & Benson LLP
2200 Norwest Center
Minneapolis, MN 55402
FOR MORE INFORMATION CONCERNING EACH FUND (INCLUDING FEES, EXPENSES AND RISKS
ASSOCIATED WITH AN INVESTMENT IN EACH FUND), CONTACT THE FUND AT 1-800-370-0612
OR YOUR INVESTMENT PROFESSIONAL FOR THE FUND'S CURRENT PROSPECTUS. PLEASE READ
IT CAREFULLY BEFORE INVESTING. PAST PERFORMANCE SHOWN IN THIS REPORT SHOULD NOT
BE CONSIDERED A REPRESENTATION OF FUTURE PERFORMANCE. INVESTMENT RETURN AND
PRINCIPAL VALUE OF SHARES WILL FLUCTUATE SO THAT SHARES, WHEN REDEEMED, MAY BE
WORTH MORE OR LESS THAN THEIR ORIGINAL COST.
PERFORMANCE INFORMATION CONTAINED HEREIN RELATING TO JUNDT U.S. EMERGING GROWTH
FUND, JUNDT OPPORTUNITY FUND AND JUNDT TWENTY-FIVE FUND REFLECTS THE VOLUNTARY
PAYMENT OR REIMBURSEMENT BY JUNDT ASSOCIATES, INC., EACH FUND'S INVESTMENT
ADVISER, OF CERTAIN FEES AND EXPENSES.
THIS REPORT MUST BE ACCOMPANIED OR PRECEDED BY THE FUNDS' CURRENT PROSPECTUS.
JUNDT FUNDS
JUNDT
GROWTH FUND
JUNDT
U.S. EMERGING
GROWTH FUND
JUNDT
OPPORTUNITY FUND
JUNDT
TWENTY-FIVE FUND
ANNUAL REPORT
DECEMBER 31, 1999
SEARCHING TODAY FOR THE GENIUSES OF TOMORROW(SM)
<PAGE>
LETTER TO SHAREHOLDERS
DEAR SHAREHOLDER,
Calendar year 1999 witnessed significant growth in the equity markets. As the
year drew to a close, the equity markets continued to set new record highs
almost daily. In fact, all three of the major markets' indexes experienced
record highs on the final day of the year, with the Dow Jones Industrial Average
closing at 11,497, the NASDAQ composite closing at 4,069, and the Standard &
Poor's 500 Index closing at 1,469, resulting in gains for the year of 27.3%,
85.6%, and 21.1%, respectively. While the first through third quarters
experienced fairly steady growth, the fourth quarter surged ahead rapidly with
some companies seeing nearly parabolic moves in their stock prices.
During the first through third quarters, the Jundt Funds were positioned fairly
cautiously based upon our evaluation of the underlying interest rate and
economic conditions. Specific factors we were evaluating included: the threat of
rising interest rates, negative market breadth, speculation in a record number
of initial public offerings, and rising commodity prices.
In the fourth quarter, however, the Federal Reserve began taking steps to
provide liquidity -- such as making available up to $200 billion in additional
currency, allowing banks to borrow additional reserves, and creating longer term
repurchase agreements* -- in an effort to avoid potential Y2K problems in the
U.S. financial system. We viewed this short-term boost in the money supply as a
potential catalyst for the markets, and we saw several of the negative factors
from the first three quarters of the year improve. Consequently, we reduced many
of our hedge positions and increased the funds' long exposure, specifically in
the areas of technology and pharmaceuticals. This positioning resulted in strong
fourth quarter performance across all of the funds.
JUNDT GROWTH FUND
The Jundt Growth Fund, which is generally managed more conservatively than the
other Jundt Funds, concentrates on medium-to-large capitalization companies,
with a majority of the equity securities consisting of companies that have
annual revenues greater than $750 million. The Fund seeks to invest in companies
with annual revenue growth rates of at least 15%. As of December 31st, the
Fund's portfolio was generating top-line revenue growth in excess of 35%, versus
an average of 12% for the companies comprising the Standard & Poor's 500 Index.
Companies in the telecommunications, medical devices, pharmaceutical and retail
sectors were prominent in the portfolio during the period and showed strong
performance.
The aggregate returns for the various periods ended December 31, 1999 for the
Jundt Growth Fund and the Fund's comparable benchmark are stated below:
SINCE
1-YEAR INCEPTION(1)
------ ------------
JUNDT GROWTH FUND** 19.97% 202.17%
Lipper Growth Fund Index 27.96 311.34
Standard & Poor's 500 Index 21.14 359.86
1
<PAGE>
LETTER TO SHAREHOLDERS (CONTINUED)
JUNDT U.S. EMERGING GROWTH FUND
The investment objective of the Jundt U.S. Emerging Growth Fund is long-term
capital appreciation. The Fund seeks to attain this objective by investing in 30
to 50 of the fastest growing companies in the United States. This Fund
concentrates on small-to-medium capitalization companies. The majority of its
portfolio is comprised of companies with annual revenues of less than $250
million. We place an emphasis on companies we believe will achieve annual
revenue growth of at least 25%. As of December 31st, the Fund's portfolio was
generating top-line revenue growth of approximately 69%.
Companies in the computer services, computer hardware, telecommunications, and
Internet technology sectors were the largest portions of the portfolio during
the period.
The aggregate returns for the various periods ended December 31, 1999 for the
Jundt U.S. Emerging Growth Fund and the Fund's comparable benchmark are stated
below:
SINCE
1-YEAR INCEPTION(2)
------ ------------
JUNDT U.S. EMERGING
GROWTH FUND*** 49.04% 295.75%
Lipper Small Cap
Growth Fund Index 41.54 85.13
Standard & Poor's 500 Index 21.14 156.40
JUNDT OPPORTUNITY FUND
The Jundt Opportunity Fund seeks long-term capital appreciation by utilizing an
aggressive yet flexible investment program. The Fund may employ leverage, sell
securities short, and buy and sell futures and options contracts to protect
assets against adverse market price changes and to generate additional
investment returns.
Companies in the computer hardware and software, telecommunications, medical
devices, and pharmaceutical sectors were significant positions within the Fund's
portfolio during the period.
The aggregate returns for the various periods ended December 31, 1999 for the
Jundt Opportunity Fund and the Fund's comparable benchmark are stated below:
SINCE
1-YEAR INCEPTION(3)
------ ------------
JUNDT OPPORTUNITY FUND*** 36.11% 204.98%
Lipper Capital Appreciation
Fund Index 39.17 100.39
Standard & Poor's 500 Index 21.14 108.04
2
<PAGE>
LETTER TO SHAREHOLDERS (CONCLUDED)
JUNDT TWENTY-FIVE FUND
The Jundt Twenty-Five Fund's investment objective is long-term capital
appreciation. The Fund seeks to achieve this objective by investing in a
concentrated portfolio of approximately 25 stocks composed primarily of American
growth companies of all sizes.
The Fund's strong performance in 1999 can largely be attributed to strength in
telecommunications, medical devices, computer software, pharmaceutical, computer
hardware and broadcasting/cable stocks.
The aggregate returns for the various periods ended December 31, 1999 for the
Jundt Twenty-Five Fund and the Fund's comparable benchmark are stated below:
SINCE
1-YEAR INCEPTION(4)
------ ------------
JUNDT TWENTY-FIVE FUND*** 41.59% 148.09%
Lipper Capital Appreciation
Fund Index 39.17 67.01
Standard & Poor's 500 Index 21.14 55.98
I want to take this opportunity to make a couple of announcements regarding the
Jundt Funds. THE JUNDT FUNDS ARE IN THE PROCESS OF CONVERTING TO FIRSTAR BANK,
N.A. FOR CUSTODIAL SERVICES AND TO FIRSTAR MUTUAL FUND SERVICES, LLC FOR FUND
ADMINISTRATION, FUND ACCOUNTING AND TRANSFER AGENCY SERVICES. This decision has
been reviewed and approved by the Funds' Board of Directors who believe that the
conversion is in the best interests of the Funds' shareholders.
WE HAVE ALSO DECIDED TO CLOSE THE JUNDT U.S. EMERGING GROWTH FUND TO NEW
INVESTORS AS OF APRIL 30, 2000. Existing shareholders as of April 30, 2000 will
be allowed to purchase additional shares of the Fund after April 30, 2000. The
Fund's Board of Directors and the Fund's investment adviser who believe that it
is in the best interests of the Fund's shareholders to close the Fund to new
investors at that time.
Thank you for investing in the Jundt Funds.
Sincerely,
/s/ James R. Jundt
James R. Jundt
Chairman
*According to Business Week, December 20, 1999.
**Quoted performance is for the Growth Fund's Class I shares, which are not
available for public investment. The Fund currently issues four share
classes, each subject to different sales charges and Rule 12b-1 fees. Class I
shares are not subject to sales charges for certain investors or Rule 12b-1
fees. Therefore, the performance of Class I shares will exceed that of each
of the Fund's other share classes.
***Quoted performance is for the Fund's Class A shares. Each Fund currently
issues four share classes, each subject to different sales charges and Rule
12b-1 fees. Class A shares are subject to a maximum front-end sales charge of
5.25%. The stated return does not reflect the deduction of any front-end
sales charge.
(1)Inception dates are September 3, 1991 for the Jundt Growth Fund's Class I
shares and the S & P 500 Index and August 31, 1991 for the Lipper Growth Fund
Index.
(2)Inception dates are January 2, 1996 for the Jundt U.S. Emerging Growth Fund's
Class A shares and December 29, 1995 for the Lipper Small Cap Growth Fund
Index and the S & P 500 Index.
(3)Inception date is December 26, 1996 for the Jundt Opportunity Fund's Class A
shares and the Lipper Capital Appreciation Fund Index and December 31, 1996
for the S & P 500 Index.
(4)Inception date is December 31, 1997 for the Jundt Twenty-Five Fund's Class A
shares, the Lipper Capital Appreciation Fund Index and the S&P 500 Index
data.
3
<PAGE>
JUNDT ASSOCIATES' APPROACH TO INVESTING: GROWTH FUND
JUNDT ASSOCIATES IS GROWTH-ORIENTED; OUR FOCUS IS ON COMPANIES GENERATING
significant revenue increases. We believe the U.S. economy's heterogeneous
nature and multi-trillion-dollar size generally afford investors significant
growth opportunities. We emphasize the fundamental prospects of individual
companies rather than macroeconomic trends.
The Growth Fund concentrates on medium- to large-size companies, with at least
half the equity securities consisting of companies that have annual revenues
greater than $750 million. Within these parameters, the Growth Fund's mission is
to establish equity positions in 30 to 50 companies we believe to be among the
fastest-growing corporations in America. Particular emphasis is placed on
companies we believe will achieve annual rates of revenue growth of 15% or
greater. See the Fund's prospectus for a description of the risks that may be
associated with an investment in the Fund.
INDUSTRY SECTORS REPRESENTED IN THE FUND'S PORTFOLIO AS OF DECEMBER 31, 1999
(AS A PERCENTAGE OF NET ASSETS)
--------------------------------------------------------------------------------
[PIE CHART]
Computer Services/Software 12.3%
Computer Hardware 2.2%
Telecommunication Infrastructure 15.0%
Electronics 1.2%
Wireless/Telecommunication Services 11.0%
Short-Term Security/Other assets
in excess of liabilities 12.8%
Broadcasting/Cable 7.2%
Internet Technology 2.2%
Medical Devices/Drugs 21.1%
Diversified 1.9%
Retail 12.0%
Restaurants 1.1%
4
<PAGE>
PERFORMANCE DATA: GROWTH FUND (UNAUDITED)
TOTAL RETURN BASED ON A $10,000 INVESTMENT
--------------------------------------------------------------------------------
[PLOT POINTS CHART]
<TABLE>
<CAPTION>
JUNDT GROWTH FUND(1) JUNDT GROWTH FUND(1)
(Class I shares (Class I shares RUSSELL LIPPER GROWTH
without sales charge)* with sales charge) 1000 INDEX(2) FUND INDEX(3)
---------------------- ------------------ ------------- -------------
<S> <C> <C> <C> <C>
9/3/1991 10,000 9,475 10,000 10,000
10,036 9,509 10,000 9,925
12/31/1991 11,073 10,492 10,840 10,801
10,472 9,922 10,605 10,631
9,870 9,352 10,753 10,421
10,178 9,644 11,094 10,686
12/31/1992 11,152 10,567 11,808 11,625
10,665 10,105 12,300 11,970
10,821 10,253 12,386 12,147
11,022 10,443 12,786 12,730
12/31/1993 11,159 10,573 13,010 13,018
11,032 10,453 12,497 12,628
10,331 9,789 12,472 12,351
11,853 11,230 13,110 12,958
12/31/1994 11,681 11,068 13,060 12,813
11,978 11,349 14,302 13,739
12,813 12,141 15,649 15,209
14,267 13,518 17,044 16,592
12/31/1995 13,761 13,039 17,993 16,997
13,957 13,224 18,985 17,761
15,305 14,501 19,759 18,349
15,846 15,014 20,403 18,880
12/31/1996 15,857 15,024 22,032 19,977
14,965 14,179 22,373 19,901
16,575 15,705 26,134 23,043
18,509 17,537 28,416 25,407
12/31/1997 17,577 16,654 29,270 25,576
19,928 18,881 33,183 28,741
21,097 19,989 34,013 29,558
20,260 19,196 30,506 26,185
12/31/1998 25,186 23,864 37,179 32,147
27,806 26,346 38,713 33,776
27,925 26,459 41,470 35,969
27,970 26,502 38,733 34,107
12/31/1999 30,217 28,630 44,954 41,135
</TABLE>
AVERAGE ANNUAL TOTAL RETURNS (for periods ended December 31, 1999)
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
SINCE SINCE
1-YEAR 5-YEAR INCEPTION(4) INCEPTION(5)
--------------------------------------------------------------------------------
JUNDT GROWTH CLASS A
Without sales charge* 19.71% -- -- 21.86%
With sales charge (a) 13.42 -- -- 20.23
--------------------------------------------------------------------------------
JUNDT GROWTH CLASS B
Without sales charge* 18.72 -- -- 20.99
With sales charge (b) 14.72 -- -- 20.70
--------------------------------------------------------------------------------
JUNDT GROWTH CLASS C
Without sales charge 18.82 -- -- 21.05
With sales charge (c) 17.82 -- -- 21.05
--------------------------------------------------------------------------------
JUNDT GROWTH CLASS I
Without sales charge* 19.97 20.92% 14.19% --
With sales charge (a) 13.67 19.63 13.46 --
--------------------------------------------------------------------------------
RUSSELL 1000 INDEX 20.91 28.03 19.77 25.66
--------------------------------------------------------------------------------
LIPPER GROWTH FUND INDEX 27.96 26.27 18.50 24.73
--------------------------------------------------------------------------------
*Applicable to investors who purchased shares at net asset value (without sales
charges), including shareholders who acquired Class I shares upon the Fund's
conversion to an open-end fund on December 29, 1995.
(a) maximum initial sales charge of 5.25%.
(b) a contingent deferred sales charge of up to 4% will be imposed if shares
are redeemed within six years of purchase.
(c) a contingent deferred sales charge of 1% will be imposed if shares are
redeemed within one year of purchase.
(1)Total return is based on a hypothetical investment at the Fund's inception on
September 3, 1991. ACTUAL PERFORMANCE OF INVESTORS WILL VARY DEPENDING UPON
THE TIMING OF THEIR INVESTMENTS IN THE FUND. Total return assumes
reinvestment of all dividends and distributions. One line reflects total
return with deduction of the current maximum initial sales charge of 5.25%,
and the other line reflects total return without such charge. Total return
prior to December 29, 1995, reflects the Fund's performance as a closed-end
fund. As an open-end fund, the Fund incurs certain additional expenses as a
result of the continuous offering and redemption of its shares. Since
December 29, 1995, the Fund has offered its shares in four classes
(currently, Class A, B, C and I). Class A, Class B and Class C performance
will vary from Class I performance due to the differences in sales charges
and expenses applicable to an investment in each such class.
(2)The Russell 1000 Index measures the performance of the 1,000 largest U.S.
companies based on total market capitalization. THE INDEX DOES NOT REFLECT
THE DEDUCTION OF SALES CHARGES AND EXPENSES THAT ARE BORNE BY MUTUAL FUND
INVESTORS. Inception date for index data is September 3, 1991.
(3)The Lipper Growth Fund Index is the composite performance of the 30 largest
"growth" mutual funds, as categorized by Lipper Analytical Services, Inc.
Performance is presented net of the funds' fees and expenses and assumes
reinvestment of all dividends and distributions. HOWEVER, APPLICABLE SALES
CHARGES ARE NOT TAKEN INTO CONSIDERATION. Inception date for index data is
August 31, 1991.
(4)Inception dates are September 3, 1991, for the Fund's Class I shares and the
Russell 1000 Index, and August 31, 1991, for the Lipper Growth Fund Index.
(5)Inception data is December 29, 1995, for the Fund's Class A, Class B and
Class C shares and for index data.
PAST PERFORMANCE OF THE FUND SHOULD NOT BE CONSIDERED PREDICTIVE OF FUTURE
FUND PERFORMANCE. INVESTMENT RETURN AND PRINCIPAL VALUE OF FUND SHARES WILL
FLUCTUATE SO THAT SUCH SHARES, WHEN REDEEMED, MAY BE WORTH MORE OR LESS THAN
THEIR ORIGINAL COST.
5
<PAGE>
Jundt Growth Fund
SCHEDULE OF INVESTMENTS December 31, 1999
COMMON STOCKS
<TABLE>
<CAPTION>
Industry Description and Issue Number of Shares Cost Market Value (a)
----------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
BROADCASTING/CABLE (7.2%)
----------------------------------------------------------------------------------------------------
Cablevision Systems Corporation, Class A (b) 39,900 $ 1,572,954 $ 3,012,450
Gemstar International Group Limited (b) 60,000 864,375 4,275,000
---------------------------------
2,437,329 7,287,450
---------------------------------
COMPUTER HARDWARE (2.2%)
----------------------------------------------------------------------------------------------------
Intel Corporation 26,500 1,428,850 2,181,281
---------------------------------
COMPUTER SERVICES/SOFTWARE (12.3%)
----------------------------------------------------------------------------------------------------
Compuware Corporation (b) 54,800 1,435,608 2,041,300
Intuit, Inc. (b) 40,300 760,448 2,415,481
Microsoft Corporation (b) 34,100 1,753,294 3,981,175
Novell, Inc. (b) 100,200 2,889,213 4,001,737
---------------------------------
6,838,563 12,439,693
---------------------------------
DIVERSIFIED (1.9%)
----------------------------------------------------------------------------------------------------
Corning, Inc. 15,000 1,039,851 1,934,063
---------------------------------
ELECTRONICS (1.2%)
----------------------------------------------------------------------------------------------------
Texas Instruments Incorporated 12,600 782,890 1,220,625
---------------------------------
INTERNET TECHNOLOGY (2.2%)
----------------------------------------------------------------------------------------------------
America Online, Inc. (b) 30,600 1,164,371 2,308,388
---------------------------------
MEDICAL DEVICES/DRUGS (21.1%)
----------------------------------------------------------------------------------------------------
Amgen, Inc. (b) 31,600 922,476 1,897,975
Biogen, Inc. (b) 41,700 2,706,713 3,523,650
Immunex Corporation (b) 26,400 1,615,829 2,890,800
Medtronic, Inc. 27,200 747,966 991,100
Merck & Co., Inc. 61,900 4,707,589 4,151,169
Monsanto Company 138,200 5,792,130 4,923,375
Pharmacia & Upjohn, Inc. 16,600 978,143 747,000
Schering-Plough Corporation 51,900 2,696,606 2,189,531
---------------------------------
20,167,452 21,314,600
---------------------------------
RESTAURANTS (1.1%)
----------------------------------------------------------------------------------------------------
Starbucks Corporation (b) 46,900 1,172,471 1,137,325
---------------------------------
</TABLE>
See accompanying notes to schedule of investments. 6
<PAGE>
Jundt Growth Fund
SCHEDULE OF INVESTMENTS (CONTINUED) December 31, 1999
COMMON STOCKS (CONCLUDED)
<TABLE>
<CAPTION>
Industry Description and Issue Number of Shares Cost Market Value (a)
----------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
RETAIL (12.0%)
----------------------------------------------------------------------------------------------------
Abercrombie & Fitch Company, Class A (b) 128,900 $ 3,137,724 $ 3,440,019
AutoZone, Inc. (b) 72,000 2,264,443 2,326,500
Bed Bath & Beyond, Inc. (b) 34,400 592,351 1,195,400
The Home Depot, Inc. 51,300 663,035 3,517,256
Staples, Inc. (b) 79,489 685,631 1,649,397
---------------------------------
7,343,184 12,128,572
---------------------------------
TELECOMMUNICATIONS INFRASTRUCTURE (15.0%)
----------------------------------------------------------------------------------------------------
Advanced Fibre Communications, Inc. (b) 60,000 1,680,624 2,681,250
Cisco Systems, Inc. (b) 29,500 836,237 3,160,188
Korea Thrunet Co, Ltd. - Class A (b) 36,500 2,296,292 2,477,438
Qwest Communications International Inc. (b) 99,300 3,487,066 4,269,900
Tellabs, Inc. (b) 40,000 1,194,095 2,567,500
---------------------------------
9,494,314 15,156,276
---------------------------------
WIRELESS/TELECOMMUNICATION SERVICES (11.0%)
----------------------------------------------------------------------------------------------------
ADC Telecommunications, Inc. (b) 29,900 1,597,635 2,169,618
Global Telesystems Group, Inc. (b) 115,400 2,892,099 3,995,724
Nextel Communications, Inc. - Class A (b) 22,400 380,800 2,310,000
Nokia Corporation, ADR 14,100 1,239,245 2,679,000
---------------------------------
6,109,779 11,154,342
---------------------------------
TOTAL COMMON STOCKS (87.2%) 57,979,054 88,262,615
=================================
</TABLE>
See accompanying notes to schedule of investments. 7
<PAGE>
Jundt Growth Fund
SCHEDULE OF INVESTMENTS (CONCLUDED) December 31, 1999
SHORT-TERM SECURITY (1.8%)
<TABLE>
<CAPTION>
Issue Number of Shares Cost Market Value (a)
----------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
MONEY MARKET FUND (1.8%)
----------------------------------------------------------------------------------------------------
Wells Fargo 100% Treasury Money Market Fund,
4.68% (c) 1,853,842 $ 1,853,842 $ 1,853,842
---------------------------------
TOTAL SHORT-TERM SECURITY (1.8%) 1,853,842 1,853,842
=================================
Total investments in securities (89.1%) $59,832,896(d) 90,116,457
===========
Other assets in excess of liabilities (11.0%) 11,122,679
------------
NET ASSETS (100.0%) $101,239,136
============
</TABLE>
Notes to Schedule of Investments:
Percentage of investments as shown is the ratio of the total market value to
total net assets.
(a) Securities are valued by procedures described in note 2 to the financial
statements.
(b) Presently non-income producing.
(c) Rate changes to reflect market conditions. Rate disclosed is as of
December 31, 1999.
(d) Cost for federal income tax purposes at December 31, 1999 was
$59,832,896. The aggregate gross unrealized appreciation and depreciation
on investments in securities based on this cost were:
----------------------------------------------
Gross unrealized appreciation $32,482,101
Gross unrealized depreciation (2,198,540)
-----------
Net unrealized appreciation $30,283,561
----------------------------------------------
Short futures contracts entered into as of December 31, 1999:
---------------------------------------------------------------
UNREALIZED
CONTRACTS ISSUE MARKET VALUE DEPRECIATION
---------------------------------------------------------------
45 Nasdaq 100 - Mar 2000 $16,893,900 $ (4,152)
180 S&P 500 - Mar 2000 66,789,000 (166,359)
---------------------------------------------------------------
225 Total $83,682,900 $(170,511)
---------------------------------------------------------------
See accompanying notes to financial statements. 8
<PAGE>
JUNDT ASSOCIATES' APPROACH TO INVESTING: U.S. EMERGING GROWTH
THE U.S. EMERGING GROWTH FUND CONCENTRATES ON SMALLER COMPANIES WITH at least
half the equity securities consisting of companies with annual revenues less
than $750 million. Within these parameters, the U.S. Emerging Growth Fund's
mission is to establish equity positions in 30 to 50 companies we believe to be
among the fastest-growing corporations in America. The focus is on companies we
believe are capable of achieving annual rates of revenue growth of 25% or
greater. See the Fund's prospectus for a description of the risks that may be
associated with an investment in the Fund.
INDUSTRY SECTORS REPRESENTED IN THE FUND'S PORTFOLIO AS OF DECEMBER 31, 1999
(AS A PERCENTAGE OF NET ASSETS)
--------------------------------------------------------------------------------
[PIE CHART]
Computer Services/Software 24.2%
Short-Term Security/Other assets
in excess of liabilities 39.1%
Education 1.9%
Telecommunication/Equipment 4.8%
Wireless/Telecommunication Services 6.5%
Telecommunication Infrastructure 0.9%
Internet Technology 6.4%
Miscellaneous 1.7%
Retail 0.7%
Restaurants 2.2%
Medical Devices/Drugs 6.9%
Computer Hardware 4.7%
9
<PAGE>
PERFORMANCE DATA: U.S. EMERGING GROWTH FUND (UNAUDITED)
TOTAL RETURN BASED ON A $10,000 INVESTMENT
--------------------------------------------------------------------------------
[PLOT POINTS CHART]
<TABLE>
<CAPTION>
JUNDT U.S. JUNDT U.S.
EMERGING GROWTH FUND(1) EMERGING GROWTH FUND(1)
(Class A shares (Class A shares LIPPER SMALL CAP RUSSELL 2000
without sales charge)* with sales charge) GROWTH FUND INDEX(2) GROWTH INDEX(3)
---------------------- ------------------ -------------------- ---------------
<S> <C> <C> <C> <C>
1/2/96 10,000 9,475 10,000 10,000
12,260 11,616 10,564 10,563
14,990 14,203 11,403 11,180
14,940 14,156 11,546 11,084
12/31/96 14,340 13,588 11,437 11,114
13,474 12,767 10,359 9,948
16,199 15,349 12,128 11,695
19,767 18,729 13,969 13,673
12/31/97 19,151 18,145 13,165 12,552
20,804 19,712 14,566 14,044
21,155 20,045 14,003 13,237
21,170 20,058 11,007 10,277
12/31/98 26,552 25,158 13,043 12,707
25,770 24,351 12,427 12,493
26,570 25,175 14,273 14,336
27,369 25,932 13,956 13,631
12/31/99 39,575 37,497 18,461 18,182
</TABLE>
AVERAGE ANNUAL TOTAL RETURNS (for periods ended December 31, 1999)
--------------------------------------------------------------------------------
SINCE
1-YEAR INCEPTION(4)
--------------------------------------------------------------------------------
JUNDT U.S. EMERGING GROWTH CLASS A
Without sales charge* 49.04% 41.08%
With sales charge (a) 41.22 39.19
--------------------------------------------------------------------------------
JUNDT U.S. EMERGING GROWTH CLASS B
Without sales charge* 47.96 40.18
With sales charge (b) 43.96 39.90
--------------------------------------------------------------------------------
JUNDT U.S. EMERGING GROWTH CLASS C
Without sales charge 47.88 40.17
With sales charge (c) 46.88 40.17
--------------------------------------------------------------------------------
JUNDT U.S. EMERGING GROWTH CLASS I 49.51 41.60
--------------------------------------------------------------------------------
LIPPER SMALL CAP GROWTH FUND INDEX 41.54 16.56
--------------------------------------------------------------------------------
RUSSELL 2000 GROWTH INDEX 43.09 16.12
--------------------------------------------------------------------------------
*Applicable to investors who purchased shares at net asset value (without sales
charges).
(a) maximum initial sales charge of 5.25%.
(b) a contingent deferred sales charge of up to 4% will be imposed if shares
are redeemed within six years of purchase.
(c) a contingent deferred sales charge of 1% will be imposed if shares are
redeemed within one year of purchase.
(1)Total return is based on a hypothetical investment at the Fund's inception on
January 2, 1996. ACTUAL PERFORMANCE OF INVESTORS WILL VARY DEPENDING UPON THE
TIMING OF THEIR INVESTMENTS IN THE FUND. Total return assumes reinvestment of
all dividends and distributions. One line reflects total return with
deduction of the current maximum initial sales charge of 5.25%, and the other
line reflects total return without such charge. The ending value of
investments in the Fund's Class B shares, Class C shares (each reflecting the
deduction of the appropriate deferred sales charge, if any) and Class I
shares (which are not subject to any sales charges) over the same time period
was $38,276, $38,565 and $40,169, respectively. Class B, Class C and Class I
performance will vary from Class A performance due to the differences in
sales charges and expenses applicable to an investment in each such class.
(2)The Lipper Small Cap Growth Fund Index is the composite performance of the 30
largest "small company growth" mutual funds, as categorized by Lipper
Analytical Services, Inc. Performance is presented net of the funds' fees and
expenses and assumes reinvestment of all dividends and distributions.
HOWEVER, APPLICABLE SALES CHARGES ARE NOT TAKEN INTO CONSIDERATION. Inception
date for index data is December 29, 1995.
(3)The Russell 2000 Growth Index measures the performance of the companies
within the Russell 2000 Index with relatively higher price-to-book ratios and
forecasted growth values. THE INDEX DOES NOT REFLECT THE DEDUCTION OF SALES
CHARGES AND EXPENSES THAT ARE BORNE BY MUTUAL FUND INVESTORS. Inception date
for index data is January 2, 1996.
(4)Inception dates are January 2, 1996, for the Fund's shares and the Russell
2000 Growth Index, and December 29, 1995, for Lipper Small Cap Growth Fund
Index data.
PAST PERFORMANCE OF THE FUND SHOULD NOT BE CONSIDERED PREDICTIVE OF FUTURE
FUND PERFORMANCE. PERFORMANCE INFORMATION RELATING TO JUNDT U.S. EMERGING
GROWTH FUND REFLECTS THE VOLUNTARY PAYMENT OR REIMBURSEMENT BY JUNDT
ASSOCIATES, INC., THE FUND'S INVESTMENT ADVISER, OF CERTAIN FEES AND
EXPENSES. INVESTMENT RETURN AND PRINCIPAL VALUE OF FUND SHARES WILL FLUCTUATE
SO THAT SUCH SHARES, WHEN REDEEMED, MAY BE WORTH MORE OR LESS THAN THEIR
ORIGINAL COST. INVESTMENTS IN SMALLER-CAPITALIZATION COMPANIES MAY EXPERIENCE
GREATER DAILY PRICE FLUCTUATIONS THAN INVESTMENTS IN LARGER COMPANIES.
10
<PAGE>
Jundt U.S. Emerging Growth Fund
SCHEDULE OF INVESTMENTS December 31, 1999
COMMON STOCKS
<TABLE>
<CAPTION>
Industry Description and Issue Number of Shares Cost Market Value (a)
----------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
COMPUTER HARDWARE (4.7%)
----------------------------------------------------------------------------------------------------
Immersion Corporation (b) 95,100 $ 1,966,383 $ 3,649,462
SanDiskCorp. (b) 8,000 604,700 770,000
---------------------------------
2,571,083 4,419,462
---------------------------------
COMPUTER SERVICES/SOFTWARE (24.2%)
----------------------------------------------------------------------------------------------------
Bluestone Software, Inc. (b) 6,000 229,500 690,000
Clarus Corporation (b) 24,000 472,634 1,584,000
Digital Insight Corporation (b) 24,000 558,000 873,000
Exchange Applications, Inc. (b) 32,000 575,500 1,788,000
FactSet Research Systems, Inc. 13,200 372,358 1,051,050
Great Plains Software, Inc. (b) 10,000 368,562 747,500
Mission Critical Software, Inc. (b) 39,300 2,072,013 2,751,000
New Era of Networks, Inc. (b) 28,000 730,694 1,333,500
nFront, Inc. (b) 50,000 649,306 1,000,000
NVIDIA Corporation (b) 23,000 842,375 1,079,563
On Technology Corporation (b) 198,000 1,175,774 2,747,250
ONYX Software Corporation (b) 40,000 1,181,865 1,480,000
Open Market, Inc. (b) 19,400 714,050 875,425
RSA Security, Inc. (b) 24,000 425,019 1,860,000
SalesLogix Corporation (b) 49,700 622,149 2,040,806
Unify Corporation (b) 26,200 255,304 717,225
---------------------------------
11,245,103 22,618,319
---------------------------------
EDUCATION (1.9%)
----------------------------------------------------------------------------------------------------
Edison Schools, Inc. (b) 115,600 2,082,125 1,820,700
---------------------------------
</TABLE>
See accompanying notes to schedule of investments. 11
<PAGE>
Jundt U.S. Emerging Growth Fund
SCHEDULE OF INVESTMENTS (CONTINUED) December 31, 1999
COMMON STOCKS (CONTINUED)
<TABLE>
<CAPTION>
Industry Description and Issue Number of Shares Cost Market Value (a)
----------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
INTERNET TECHNOLOGY (6.4%)
----------------------------------------------------------------------------------------------------
Intranet Solutions, Inc. (b) 24,000 $ 565,001 $ 888,000
Navidec, Inc. (b) 60,000 581,250 720,000
Preview Travel, Inc. (b) 38,000 710,126 1,980,750
StarMedia Network, Inc. (b) 60,700 2,265,823 2,431,794
-------------------------------
4,122,200 6,020,544
-------------------------------
MEDICAL DEVICES/DRUGS (6.9%)
----------------------------------------------------------------------------------------------------
CV Therapeutics, Inc. (b) 76,600 1,052,368 1,996,388
Heartport, Inc. (b) 555,000 2,262,748 2,636,250
MiniMed, Inc. (b) 19,300 1,579,846 1,413,725
Tularik, Inc. (b) 12,000 228,294 388,500
-------------------------------
5,123,256 6,434,863
-------------------------------
RESTAURANTS (2.2%)
----------------------------------------------------------------------------------------------------
Famous Dave's of America, Inc. (b)(c) 749,500 2,094,598 1,522,422
P.F. Chang's China Bistro, Inc. (b) 23,300 454,163 579,587
-------------------------------
2,548,761 2,102,009
-------------------------------
RETAIL (0.7%)
----------------------------------------------------------------------------------------------------
Linens 'n Things, Inc. (b) 21,000 610,825 622,125
-------------------------------
TELECOMMUNICATION/EQUIPMENT (4.8%)
----------------------------------------------------------------------------------------------------
Digital Lightwave, Inc. (b) 22,400 714,000 1,433,600
Sirius Satellite Radio, Inc. (b) 50,800 1,877,407 2,260,600
Terayon Communication Systems, Inc. (b) 12,100 414,300 760,031
-------------------------------
3,005,707 4,454,231
-------------------------------
TELECOMMUNICATION INFRASTRUCTURE (0.9%)
----------------------------------------------------------------------------------------------------
Wink Communications, Inc. (b) 13,400 533,739 804,838
-------------------------------
</TABLE>
See accompanying notes to schedule of investments. 12
<PAGE>
Jundt U.S. Emerging Growth Fund
SCHEDULE OF INVESTMENTS (CONTINUED) December 31, 1999
COMMON STOCKS (CONCLUDED)
<TABLE>
<CAPTION>
Industry Description and Issue Number of Shares Cost Market Value (a)
----------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
WIRELESS/TELECOMMUNICATIONS SERVICES (6.5%)
----------------------------------------------------------------------------------------------------
Pinnacle Holdings Inc. (b) 65,000 $ 1,147,613 $ 2,754,375
Versatel Telecom International NV - ADR (b) 96,400 1,258,769 3,367,975
---------------------------------
2,406,382 6,122,350
---------------------------------
MISCELLANEOUS (1.7%)
----------------------------------------------------------------------------------------------------
Macrovision Corporation (b) 21,000 926,125 1,554,000
---------------------------------
TOTAL COMMON STOCKS (60.9%) 35,175,306 56,973,441
=================================
</TABLE>
See accompanying notes to schedule of investments. 13
<PAGE>
Jundt U.S. Emerging Growth Fund
SCHEDULE OF INVESTMENTS (CONCLUDED) December 31, 1999
SHORT-TERM SECURITY
<TABLE>
<CAPTION>
Issue Number of Shares Cost Market Value (a)
----------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
MONEY MARKET FUND (35.3%)
----------------------------------------------------------------------------------------------------
Wells Fargo 100% Treasury Money Market Fund,
4.68% (d) 33,064,225 $ 33,064,225 $33,064,225
---------------------------------
TOTAL SHORT-TERM SECURITY (35.3%) 33,064,225 33,064,225
=================================
Total investments in securities (96.2%) $ 68,239,531(e) 90,037,666
============
Other assets in excess of liabilities (3.8%) 3,503,345
-----------
NET ASSETS (100.0%) $93,541,011
===========
</TABLE>
Notes to Schedule of Investments:
Percentage of investments as shown is the ratio of the total market value to
total net assets.
(a) Securities are valued by procedures described in note 2 to the financial
statements.
(b) Presently non-income producing.
(c) Investment represents five percent or more of the outstanding voting
securities of the issuer, and is or was an affiliate of Jundt Funds,
Inc., as defined in the Investment Company Act of 1940 at or during the
period ended December 31, 1999.
(d) Rate changes to reflect market conditions. Rate disclosed is as of
December 31, 1999.
(e) Cost for federal income tax purposes at December 31, 1999 was
$68,471,794. The aggregate gross unrealized appreciation and depreciation
on investments in securities based on this cost were:
----------------------------------------------
Gross unrealized appreciation $22,565,594
Gross unrealized depreciation (999,722)
-----------
Net unrealized appreciation $21,565,872
----------------------------------------------
Short futures contracts entered into as of December 31, 1999:
UNREALIZED
CONTRACTS ISSUE MARKET VALUE DEPRECIATION
----------------------------------------------------------------
100 Nasdaq 100 - Mar 2000 $37,542,000 $ (9,228)
45 S&P 500 - Mar 2000 16,697,250 (41,589)
----------------------------------------------------------------
145 Total $54,239,250 $ (50,817)
----------------------------------------------------------------
ADR -- American Depositary Receipt.
See accompanying notes to financial statements. 14
<PAGE>
JUNDT ASSOCIATES' APPROACH TO INVESTING: OPPORTUNITY FUND
THE OPPORTUNITY FUND'S INVESTMENT OBJECTIVE IS TO PROVIDE CAPITAL APPRECIATION
BY utilizing an aggressive yet very flexible investment program. While a
percentage of equity holdings in the Opportunity Fund may at times mirror those
in the Growth and the U.S. Emerging Growth Funds, the Opportunity Fund also may
sell securities short, invest in options and futures contracts and leverage the
portfolio. These investment techniques, among others, may be utilized by Jundt
Associates, the investment adviser, to enable the Opportunity Fund to achieve
its objective of capital appreciation. See the Fund's prospectus for a
description of the risks that may be associated with an investment in the Fund.
INDUSTRY SECTORS REPRESENTED IN THE FUND'S PORTFOLIO AS OF DECEMBER 31, 1999
(AS A PERCENTAGE OF NET ASSETS)
--------------------------------------------------------------------------------
[PIE CHART]
Computer Services/Software 16.2%
Broadcasting/Cable 5.9%
Medical Devices/Drugs 21.7%
Short-Term Security/Other assets
in excess of liabilities 17.4%
Internet Technology 11.1%
Wireless/Telecommunication Services 14.4%
Electronics 0.9%
Telecommunication Infrastructure 6.6%
Computer Hardware 2.7%
Retail 2.0%
Restaurants 1.1%
15
<PAGE>
PERFORMANCE DATA: OPPORTUNITY FUND (UNAUDITED)
TOTAL RETURN BASED ON A $10,000 INVESTMENT
--------------------------------------------------------------------------------
[PLOT POINTS CHART]
<TABLE>
<CAPTION>
JUNDT JUNDT
OPPORTUNITY FUND(1) OPPORTUNITY FUND(1) LIPPER CAPITAL
(Class A shares (Class A shares RUSSELL 1000 APPRECIATION
without sales charge)* with sales charge) GROWTH INDEX(2) FUND INDEX(3)
---------------------- ------------------ --------------- --------------
<S> <C> <C> <C> <C>
12/26/1996 10,000 9,475 10,000 10,000
12/31/1996 9,870 9,352 9,851 10,010
3/31/1997 9,640 9,134 9,904 9,558
6/3/1997 11,330 10,735 11,777 11,027
9/30/1997 14,260 13,511 12,662 12,301
12/31/1997 13,932 13,200 12,855 12,009
3/31/1998 15,397 14,589 14,802 13,531
6/30/1998 16,420 15,558 15,474 13,773
9/30/1998 17,721 16,791 14,069 11,796
12/31/1998 22,406 21,230 17,830 14,408
3/31/1999 24,061 22,798 18,964 15,100
6/30/1999 24,854 23,549 19,693 16,565
9/30/1999 23,679 22,436 18,972 15,908
12/31/1999 30,498 28,897 23,743 20,052
</TABLE>
AVERAGE ANNUAL TOTAL RETURNS (for periods ended December 31, 1999)
--------------------------------------------------------------------------------
SINCE
1-YEAR INCEPTION(4)
--------------------------------------------------------------------------------
JUNDT OPPORTUNITY CLASS A
Without sales charge* 36.11% 44.77%
With sales charge (a) 28.97 42.21
--------------------------------------------------------------------------------
JUNDT OPPORTUNITY CLASS B
Without sales charge* 35.10 43.74
With sales charge (b) 31.10 43.26
--------------------------------------------------------------------------------
JUNDT OPPORTUNITY CLASS C
Without sales charge 35.13 43.69
With sales charge (c) 34.13 43.69
--------------------------------------------------------------------------------
JUNDT OPPORTUNITY CLASS I 36.55 45.17
--------------------------------------------------------------------------------
RUSSELL 1000 GROWTH INDEX 33.16 33.23
--------------------------------------------------------------------------------
LIPPER CAPITAL APPRECIATION FUND INDEX 39.17 25.97
--------------------------------------------------------------------------------
*Applicable to investors who purchased shares at net asset value (without sales
charges).
(a) maximum initial sales charge of 5.25%.
(b) a contingent deferred sales charge of up to 4% will be imposed if shares
are redeemed within six years of purchase.
(c) a contingent deferred sales charge of 1% will be imposed if shares are
redeemed within one year of purchase.
(1)Total return is based on a hypothetical investment at the Fund's inception on
December 26, 1996. ACTUAL PERFORMANCE OF INVESTORS WILL VARY DEPENDING UPON
THE TIMING OF THEIR INVESTMENTS IN THE FUND. Total return assumes
reinvestment of all dividends and distributions. One line reflects total
return with deduction of the current maximum initial sales charge of 5.25%,
and the other line reflects total return without such charge. The ending
value of investments in the Fund's Class B shares, Class C shares (each
reflecting the deduction of the appropriate deferred sales charge, if any)
and Class I shares (which are not subject to any sales charges) over the same
time period was $29,548, $29,815 and $30,750, respectively. Class B, Class C
and Class I performance will vary from Class A performance due to the
differences in sales charges and expenses applicable to an investment in each
such class.
(2)The Russell 1000 Growth Index measures the performance of the companies
within the Russell 1000 Index with relatively higher price-to-book ratios and
forecasted growth values. THE INDEX DOES NOT REFLECT THE DEDUCTION OF SALES
CHARGES AND EXPENSES THAT ARE BORNE BY MUTUAL FUND INVESTORS. Inception date
for index data is December 26, 1996.
(3)The Lipper Capital Appreciation Fund Index is the composite performance of
the 30 largest "capital appreciation" mutual funds, as categorized by Lipper
Analytical Services, Inc. Performance is presented net of the funds' fees and
expenses and assumes reinvestment of all dividends and distributions.
HOWEVER, APPLICABLE SALES CHARGES ARE NOT TAKEN INTO CONSIDERATION. Inception
date for index data is December 26, 1996.
(4)Inception date is December 26, 1996, for both the Fund's shares and the index
data.
PAST PERFORMANCE OF THE FUND SHOULD NOT BE CONSIDERED PREDICTIVE OF FUTURE
FUND PERFORMANCE. PERFORMANCE INFORMATION RELATING TO JUNDT OPPORTUNITY FUND
REFLECTS THE VOLUNTARY PAYMENT OR REIMBURSEMENT BY JUNDT ASSOCIATES, INC.,
THE FUND'S INVESTMENT ADVISER, OF CERTAIN FEES AND EXPENSES. INVESTMENT
RETURN AND PRINCIPAL VALUE OF FUND SHARES WILL FLUCTUATE SO THAT SUCH SHARES,
WHEN REDEEMED, MAY BE WORTH MORE OR LESS THAN THEIR ORIGINAL COST. SELLING
SECURITIES SHORT, EMPLOYING LEVERAGE AND INVESTING IN OPTIONS AND FUTURES
CONTRACTS INVOLVE ADDITIONAL INVESTMENT RISK.
16
<PAGE>
Jundt Opportunity Fund
SCHEDULE OF INVESTMENTS December 31, 1999
COMMON STOCKS
<TABLE>
<CAPTION>
Industry Description and Issue Number of Shares Cost Market Value (a)
----------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
BROADCASTING/CABLE (5.9%)
----------------------------------------------------------------------------------------------------
Cablevision Systems Corporation, Class A (b) 29,100 $ 1,479,275 $ 2,197,050
TV Guide, Inc., Class A (b) 75,000 1,876,888 3,225,000
---------------------------------
3,356,163 5,422,050
---------------------------------
COMPUTER HARDWARE (2.7%)
----------------------------------------------------------------------------------------------------
Immersion Corporation (b) 64,900 1,629,662 2,490,537
---------------------------------
COMPUTER SERVICES/SOFTWARE (16.2%)
----------------------------------------------------------------------------------------------------
America Online, Inc. (b) 26,000 1,224,479 1,961,375
At Home Corporation - Series A (b) 55,400 2,470,237 2,375,275
Intuit, Inc. (b) 50,000 3,006,875 2,996,875
Microsoft Corporation (b)(e) 22,800 1,449,225 2,661,900
Novell, Inc. (b)(e) 80,000 1,135,850 3,195,000
Veritas Software Corporation (b) 12,000 207,036 1,717,500
---------------------------------
9,493,702 14,907,925
---------------------------------
ELECTRONICS (0.9%)
----------------------------------------------------------------------------------------------------
Texas Instruments Incorporated 8,800 546,780 852,500
---------------------------------
INTERNET TECHNOLOGY (11.1%)
----------------------------------------------------------------------------------------------------
CacheFlow Inc. (b) 8,000 1,083,250 1,045,500
Internet Initiative Japan, Inc. - ADR (b) 12,000 863,036 1,166,250
National Information Consortium, Inc. (b) 76,200 2,105,025 2,438,400
Preview Travel, Inc. (b) 51,500 1,582,000 2,684,438
StarMedia Network, Inc. (b) 72,900 2,539,166 2,920,556
---------------------------------
8,172,477 10,255,144
---------------------------------
MEDICAL DEVICES/DRUGS (21.7%)
----------------------------------------------------------------------------------------------------
Amgen, Inc. (b) 35,000 1,515,208 2,102,188
Biogen, Inc. (b) 42,700 2,768,706 3,608,150
Merck & Co., Inc. 55,600 4,286,642 3,728,675
MiniMed, Inc. (b) 25,100 2,002,931 1,838,575
Monsanto Company 245,800 9,877,262 8,756,625
---------------------------------
20,450,749 20,034,213
---------------------------------
</TABLE>
See accompanying notes to schedule of investments. 17
<PAGE>
Jundt Opportunity Fund
SCHEDULE OF INVESTMENTS (CONTINUED) December 31, 1999
COMMON STOCKS (CONCLUDED)
<TABLE>
<CAPTION>
Industry Description and Issue Number of Shares Cost Market Value (a)
----------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
RESTAURANTS (1.1%)
----------------------------------------------------------------------------------------------------
Starbucks Corporation (b) 40,800 $ 1,019,874 $ 989,400
---------------------------------
RETAIL (2.0%)
----------------------------------------------------------------------------------------------------
Abercrombie & Fitch Company, Class A (b) 70,000 1,811,950 1,868,125
---------------------------------
TELECOMMUNICATION INFRASTRUCTURE (6.6%)
----------------------------------------------------------------------------------------------------
Cisco Systems, Inc. (b) 30,300 904,644 3,245,888
Qwest Communications International Inc. (b) 65,000 1,978,561 2,795,000
---------------------------------
2,883,205 6,040,888
---------------------------------
WIRELESS/TELECOMMUNICATION SERVICES (14.4%)
----------------------------------------------------------------------------------------------------
EchoStar Communications Corporation, Class A (b) 35,000 519,583 3,412,500
Global Telesystems Group, Inc. (b) 81,200 2,035,277 2,811,550
Nextel Communications, Inc. - Class A (b) 17,600 619,963 1,815,000
Pinnacle Holdings Inc. (b) 40,000 575,000 1,695,000
Versatel Telecom International NV - ADR (b) 102,000 1,160,656 3,563,625
---------------------------------
4,910,479 13,297,675
---------------------------------
TOTAL COMMON STOCKS (82.6%) 54,275,041 76,158,457
=================================
</TABLE>
See accompanying notes to schedule of investments. 18
<PAGE>
Jundt Opportunity Fund
SCHEDULE OF INVESTMENTS (CONCLUDED) December 31, 1999
SHORT-TERM SECURITY
<TABLE>
<CAPTION>
Issue Number of Shares Cost Market Value (a)
----------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
MONEY MARKET FUND (14.6%)
----------------------------------------------------------------------------------------------------
Wells Fargo 100% Treasury Money Market Fund,
4.68% (c) 13,497,249 $ 13,497,249 $13,497,249
--------------------------------
TOTAL SHORT-TERM SECURITY (14.6%) 13,497,249 13,497,249
================================
Total investments in securities (97.2%) $ 67,772,290(d) 89,655,706
============
Other assets in excess of liabilities (2.8%) 2,568,017
-----------
NET ASSETS (100.0%) $92,223,723
===========
</TABLE>
Notes to Schedule of Investments:
Percentage of investments as shown is the ratio of the total market value to
total net assets.
(a) Securities are valued by procedures described in note 2 to the financial
statements.
(b) Presently non-income producing.
(c) Rate changes to reflect market conditions. Rate disclosed is as of
December 31, 1999.
(d) Cost for federal income tax purposes at December 31, 1999 was
$67,772,290. The aggregate gross unrealized appreciation and depreciation
on investments in securities based on this cost were:
-----------------------------------------------
Gross unrealized appreciation $ 23,899,562
Gross unrealized depreciation (2,016,146)
------------
Net unrealized appreciation $ 21,883,416
-----------------------------------------------
(e) Security is pledged as collateral for uncovered short sales entered into
as of December 31, 1999:
SHARES ISSUE MARKET VALUE
-----------------------------------------------
43,300 Procter & Gamble $(4,744,056)
-----------------------------------------------
Total (Proceeds - $4,613,328)
-----------------------------------------------
Short futures contracts entered into as of December 31, 1999:
---------------------------------------------------------------
UNREALIZED
CONTRACTS ISSUE MARKET VALUE DEPRECIATION
---------------------------------------------------------------
100 Nasdaq 100 - Mar 2000 $37,542,000 $ (9,228)
100 S&P 500 - Mar 2000 37,105,000 (92,421)
---------------------------------------------------------------
200 Total $74,647,000 $ (101,649)
---------------------------------------------------------------
ADR -- American Depositary Receipt
See accompanying notes to financial statements. 19
<PAGE>
JUNDT ASSOCIATES' APPROACH TO INVESTING: TWENTY-FIVE FUND
THE TWENTY-FIVE FUND'S INVESTMENT OBJECTIVE IS TO PROVIDE LONG-TERM CAPITAL
appreciation by investing in a more concentrated portfolio of approximately 25
issues of common stock. In selecting investments for the Fund's portfolio, Jundt
Associates employs a fundamental "bottom up" approach in seeking to identify
companies with strong revenue growth. The companies invested in by the Fund will
typically be companies that also are represented in the other Jundt Funds.
Because this Fund is a non-diversified Fund, Jundt Associates may, with respect
to 50% of the assets of the Fund, use broad investment discretion in the pursuit
of the investment objective. However, investment company regulations require
that at least 50% of the Fund's assets must be fully diversified. See the Fund's
prospectus for a description of the risks that may be associated with an
investment in the Fund.
INDUSTRY SECTORS REPRESENTED IN THE FUND'S PORTFOLIO AS OF DECEMBER 31, 1999
(AS A PERCENTAGE OF NET ASSETS)
--------------------------------------------------------------------------------
[PIE CHART]
Computer Services/Software 17.0%
Computer Hardware 3.7%
Medical Devices/Drugs 20.7%
Short-Term Securities/Other assets
in excess of liabilities 19.3%
Broadcasting/Cable 10.0%
Telecommunication Infrastructure 7.1%
Wireless/Telecommunication Services 3.9%
Telecommunication/Equipment 3.3%
Internet Technology 7.7%
Retail 6.3%
Restaurants 1.0%
20
<PAGE>
PERFORMANCE DATA: TWENTY-FIVE FUND (UNAUDITED)
TOTAL RETURN BASED ON A $10,000 INVESTMENT
--------------------------------------------------------------------------------
[PLOT POINTS CHART]
<TABLE>
<CAPTION>
JUNDT JUNDT
TWENTY-FIVE FUND(1) TWENTY-FIVE FUND(1) LIPPER CAPITAL
(Class A shares (Class A shares RUSSELL 1000 APPRECIATION
without sales charge)* with sales charge) GROWTH INDEX(2) FUND INDEX(3)
---------------------- ------------------ --------------- -------------
<S> <C> <C> <C> <C>
12/31/1997 10,000 10,000 10,000 10,000
3/31/1998 11,940 11,313 11,267 11,278
6/30/1998 13,080 12,393 12,038 11,469
9/30/1998 14,540 13,777 9,823 9,023
12/31/1998 17,521 16,602 13,871 11,998
3/31/1999 19,638 18,607 13,226 12,574
6/30/1999 21,035 19,930 15,320 13,794
9/30/1999 20,085 19,301 14,759 13,247
12/31/1999 24,809 23,507 18,470 16,698
</TABLE>
AVERAGE ANNUAL TOTAL RETURNS (for year ended December 31, 1999)
--------------------------------------------------------------------------------
SINCE
1-YEAR INCEPTION(4)
--------------------------------------------------------------------------------
JUNDT TWENTY-FIVE CLASS A
Without sales charge* 41.59% 57.51%
With sales charge (a) 34.16 53.32
--------------------------------------------------------------------------------
JUNDT TWENTY-FIVE CLASS B
Without sales charge* 40.59 56.12
With sales charge (b) 36.59 54.83
--------------------------------------------------------------------------------
JUNDT TWENTY-FIVE CLASS C
Without sales charge 40.85 56.41
With sales charge (c) 39.85 56.41
--------------------------------------------------------------------------------
JUNDT TWENTY-FIVE CLASS I 42.00 57.84
--------------------------------------------------------------------------------
RUSSELL 1000 GROWTH INDEX 33.16 35.91
--------------------------------------------------------------------------------
LIPPER CAPITAL APPRECIATION FUND INDEX 39.17 66.98
--------------------------------------------------------------------------------
*Applicable to investors who purchased shares at net asset value (without sales
charges).
(a) maximum initial sales charge of 5.25%.
(b) a contingent deferred sales charge of up to 4% will be imposed if shares
are redeemed within six years of purchase.
(c) a contingent deferred sales charge of 1% will be imposed if shares are
redeemed within one year of purchase.
(1)Total return is based on a hypothetical investment at the Fund's inception on
December 31, 1997. ACTUAL PERFORMANCE OF INVESTORS WILL VARY DEPENDING UPON
THE TIMING OF THEIR INVESTMENTS IN THE FUND. Total return assumes
reinvestment of all dividends and distributions. One line reflects total
return with deduction of the current maximum initial sales charge of 5.25%,
and the other line reflects total return without such charge. The ending
value of investments in the Fund's Class B shares, Class C shares (each
reflecting the deduction of the appropriate deferred sales charge, if any)
and Class I shares (which are not subject to any sales charges) over the same
time period was $23,974, $24,464 and $24,912, respectively. Class B, Class C
and Class I performance will vary from Class A performance due to the
differences in sales charges and expenses applicable to an investment in each
such class.
(2)The Russell 1000 Growth Index measures the performance of the companies
within the Russell 1000 Index with relatively higher price-to-book ratios and
forecasted growth values. THE INDEX DOES NOT REFLECT THE DEDUCTION OF SALES
CHARGES AND EXPENSES THAT ARE BORNE BY MUTUAL FUND INVESTORS. Inception date
for index data is December 31, 1997.
(3)The Lipper Capital Appreciation Fund Index is the composite performance of
the 30 largest "capital appreciation" mutual funds, as categorized by Lipper
Analytical Services, Inc. Performance is presented net of the funds' fees and
expenses and assumes reinvestment of all dividends and distributions.
HOWEVER, APPLICABLE SALES CHARGES ARE NOT TAKEN INTO CONSIDERATION. Inception
date for index data is December 31, 1997.
(4)Inception date is December 31, 1997, for the Fund's shares.
PAST PERFORMANCE OF THE FUND SHOULD NOT BE CONSIDERED PREDICTIVE OF FUTURE
FUND PERFORMANCE. PERFORMANCE INFORMATION RELATING TO JUNDT TWENTY-FIVE FUND
REFLECTS THE VOLUNTARY PAYMENT OR REIMBURSEMENT BY JUNDT ASSOCIATES, INC.,
THE FUND'S INVESTMENT ADVISER, OF CERTAIN FEES AND EXPENSES. INVESTMENT
RETURN AND PRINCIPAL VALUE OF FUND SHARES WILL FLUCTUATE SO THAT SUCH SHARES,
WHEN REDEEMED, MAY BE WORTH MORE OR LESS THAN THEIR ORIGINAL COST.
NON-DIVERSIFIED MUTUAL FUNDS MAY EXPERIENCE GREATER PRICE VOLATILITY THAN
DIVERSIFIED MUTUAL FUNDS.
21
<PAGE>
Jundt Twenty-Five Fund
SCHEDULE OF INVESTMENTS (CONTINUED) December 31, 1999
COMMON STOCKS
<TABLE>
<CAPTION>
Industry Description and Issue Number of Shares Cost Market Value (a)
----------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
BROADCASTING/CABLE (10.0%)
----------------------------------------------------------------------------------------------------
Cablevision Systems Corporation, Class A (b) 22,000 $ 1,268,435 $ 1,661,000
Charter Communications, Inc. A (b) 102,600 2,218,375 2,244,375
Gemstar International Group Limited (b) 28,800 507,262 2,052,000
---------------------------------
3,994,072 5,957,375
---------------------------------
COMPUTER HARDWARE (3.7%)
----------------------------------------------------------------------------------------------------
Immersion Corporation (b) 57,500 1,675,001 2,206,563
---------------------------------
COMPUTER SERVICES/SOFTWARE (17.0%)
----------------------------------------------------------------------------------------------------
Intuit, Inc. (b) 40,000 1,236,656 2,397,500
Microsoft Corporation (b) 11,000 782,263 1,284,250
Novell, Inc. (b) 57,400 1,365,163 2,292,413
Siebel Systems, Inc. (b) 33,000 817,429 2,772,000
Veritas Software Corporation (b) 10,000 195,124 1,431,250
---------------------------------
4,396,635 10,177,413
---------------------------------
INTERNET TECHNOLOGY (7.7%)
----------------------------------------------------------------------------------------------------
America Online, Inc. (b) 21,600 1,148,032 1,629,450
StarMedia Network, Inc. (b) 74,900 3,273,261 3,000,681
---------------------------------
4,421,293 4,630,131
---------------------------------
MEDICAL DEVICES/DRUGS (20.7%)
----------------------------------------------------------------------------------------------------
Amgen, Inc. (b) 28,400 956,613 1,705,775
Heartport, Inc. (b) 425,000 2,051,613 2,018,750
Immunex Corporation (b) 12,500 758,323 1,368,750
Merck & Co., Inc. 8,600 585,316 576,737
MiniMed, Inc. (b) 15,400 1,238,824 1,128,050
Monsanto Company 156,300 6,212,369 5,568,188
---------------------------------
11,803,058 12,366,250
---------------------------------
</TABLE>
See accompanying notes to schedule of investments. 22
<PAGE>
SCHEDULE OF INVESTMENTS (CONTINUED)
Jundt Twenty-Five Fund
December 31, 1999
COMMON STOCKS (CONCLUDED)
<TABLE>
<CAPTION>
Industry Description and Issue Number of Shares Cost Market Value (a)
----------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
RESTAURANTS (1.0%)
----------------------------------------------------------------------------------------------------
Starbucks Corporation (b) 25,800 $ 644,750 $ 625,650
---------------------------------
RETAIL (6.3%)
----------------------------------------------------------------------------------------------------
Abercrombie & Fitch Company, Class A (b) 77,100 1,786,499 2,057,606
The Home Depot, Inc. 25,200 962,411 1,727,775
---------------------------------
2,748,910 3,785,381
---------------------------------
TELECOMMUNICATION/EQUIPMENT (3.3%)
----------------------------------------------------------------------------------------------------
Sirius Satellite Radio, Inc. (b) 45,000 1,761,876 2,002,500
---------------------------------
TELECOMMUNICATION INFRASTRUCTURE (7.1%)
----------------------------------------------------------------------------------------------------
Cisco Systems, Inc. (b) 18,800 925,839 2,013,950
Qwest Communications International Inc. (b) 44,100 1,329,121 1,896,300
Tellabs, Inc. (b) 5,300 173,406 340,194
---------------------------------
2,428,366 4,250,444
---------------------------------
WIRELESS/TELECOMMUNICATION SERVICES (3.9%)
----------------------------------------------------------------------------------------------------
EchoStar Communications Corporation, Class A (b) 23,800 452,363 2,320,500
---------------------------------
TOTAL COMMON STOCKS (80.7%) 34,326,324 48,322,207
=================================
</TABLE>
See accompanying notes to schedule of investments. 23
<PAGE>
Jundt Twenty-Five Fund
SCHEDULE OF INVESTMENTS (CONCLUDED) December 31, 1999
SHORT-TERM SECURITIES
<TABLE>
<CAPTION>
Principal Amount/
Issue Number of Shares Cost Market Value (a)
-------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
REPURCHASE AGREEMENT (14.2%)
-------------------------------------------------------------------------------------------------------------
Repurchase agreement with Merrill Lynch Government
Securities, Inc., 2.75% acquired on 12/31/99 and due
1/03/00 with proceeds of $8,503,241 (collateralized by
$8,430,000 U.S. Treasury Note, 6.875%, due 05/15/06,
value including accrued interest, $8,493,946). $8,492,000 $ 8,492,000 $ 8,492,000
---------------------------------
MONEY MARKET FUNDS (0.5%)
-------------------------------------------------------------------------------------------------------------
Wells Fargo 100% Treasury Money Market Fund,
4.68% (c) 150,351 150,351 150,351
Wells Fargo Government Money Market Fund,
4.68% (c) 150,000 150,000 150,000
---------------------------------
300,351 300,351
---------------------------------
TOTAL SHORT-TERM SECURITIES (14.7%) 8,792,351 8,792,351
=================================
Total investments in securities (95.4%) $ 43,118,675(d) 57,114,558
============
Other assets in excess of liabilities (4.6%) 2,733,600
-----------
NET ASSETS (100.0%) $59,848,158
===========
</TABLE>
Notes to Schedule of Investments:
Percentage of investments as shown is the ratio of the total market value to
total net assets.
(a) Securities are valued by procedures described in note 2 to the financial
statements.
(b) Presently non-income producing.
(c) Rate changes to reflect market conditions. Rate disclosed is as of
December 31, 1999.
(d) Cost for federal income tax purposes at December 31, 1999 was
$43,221,386. The aggregate gross unrealized appreciation and depreciation
on investments in securities based on this cost were:
-----------------------------------------------
Gross unrealized appreciation $ 14,981,249
Gross unrealized depreciation (1,088,077)
------------
Net unrealized appreciation $ 13,893,172
-----------------------------------------------
Short futures contracts entered into as of December 31, 1999:
UNREALIZED
CONTRACTS ISSUE MARKET VALUE DEPRECIATION
----------------------------------------------------------------
75 Nasdaq 100 - Mar 2000 $28,156,500 $ (6,921)
75 S&P 500 - Mar 2000 27,828,750 (69,316)
----------------------------------------------------------------
150 Total $55,985,250 $ (76,237)
----------------------------------------------------------------
See accompanying notes to financial statements. 24
<PAGE>
FINANCIAL STATEMENTS December 31, 1999
STATEMENTS OF ASSETS AND LIABILITIES
<TABLE>
<CAPTION>
Jundt Jundt Jundt Jundt
Growth U.S. Emerging Opportunity Twenty-Five
Fund Growth Fund Fund Fund
----------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
ASSETS
----------------------------------------------------------------------------------------------------------------------
Investment in securities, at market value (note 2)
including repurchase agreements of $0, $0, $0,
and $8,492,000, respectively (identified cost:
$59,832,896, $68,239,531, $67,772,290, and
$43,118,675, respectively) $ 90,116,457 $ 90,037,666* $ 89,655,706 $ 57,114,558
Cash -- -- 12,650 --
Receivable for securities sold 12,108,398 2,164,809 6,337,660 4,949,297
Receivable for capital shares sold 83,960 1,842,628 285,932 783,637
Receivable from brokers for proceeds
on securities sold short -- -- 4,613,329 --
Receivable from investment adviser -- 12,250 -- 17,691
Dividends and accrued interest receivable 10,904 -- 11,455 10,993
Deferred organizational costs -- 17,400 16,897 18,921
Prepaid expenses and other assets 13,038 11,085 11,085 9,267
-------------------------------------------------------------
Total assets 102,332,757 94,085,838 100,944,714 62,904,364
-------------------------------------------------------------
LIABILITIES
----------------------------------------------------------------------------------------------------------------------
Common stocks sold short, at market value
(proceeds -- $4,613,329) -- -- 4,744,056 --
Payable for securities purchased 576,669 53,908 3,512,077 2,798,430
Payable for capital shares redeemed 139,623 246,948 110,651 7,659
Payable for variation margin on open futures
contracts 170,511 50,817 101,649 76,237
Accrued investment advisory fee 84,431 71,217 117,366 61,111
Accrued administrative fee 16,886 10,616 13,498 10,616
Accrued distribution fee 4,451 41,863 39,130 28,447
Interest payable (note 5) -- -- 2,895 --
Accrued expenses and other liabilities 101,050 69,458 79,669 73,706
-------------------------------------------------------------
Total liabilities 1,093,621 544,827 8,720,991 3,056,206
-------------------------------------------------------------
Net assets applicable to outstanding capital stock $101,239,136 $ 93,541,011 $ 92,223,723 $ 59,848,158
=============================================================
</TABLE>
*Includes $1,522,422 of securities of an affiliated issuer.
--------------------------------------------------------------------------------
See accompanying notes to financial statements. 25
<PAGE>
FINANCIAL STATEMENTS (CONTINUED) December 31, 1999
STATEMENTS OF ASSETS AND LIABILITIES (CONCLUDED)
<TABLE>
<CAPTION>
Jundt Jundt Jundt Jundt
Growth U.S. Emerging Opportunity Twenty-Five
Fund Growth Fund Fund Fund
------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
NET ASSETS CONSIST OF
------------------------------------------------------------------------------------------------------------------------
Capital stock (note 1) $ 63,171,704 $ 61,146,121 $ 63,171,225 $ 44,688,477
Accumulated net investment loss -0- (251,892) (386,673) -0-
Accumulated net realized gain on investments 7,954,382 10,899,464 7,788,132 1,240,035
Unrealized appreciation on investments 30,113,050 21,747,318 21,651,039 13,919,646
--------------------------------------------------------------
Total, representing net assets applicable
to outstanding capital stock $101,239,136 $ 93,541,011 $ 92,223,723 $ 59,848,158
==============================================================
Net assets applicable to outstanding Class A shares $ 2,880,071 $ 34,530,859 $ 23,976,742 $ 18,019,966
==============================================================
Net assets applicable to outstanding Class B shares $ 3,650,156 $ 28,105,756 $ 24,604,449 $ 17,734,132
==============================================================
Net assets applicable to outstanding Class C shares $ 1,187,580 $ 18,449,798 $ 18,170,686 $ 14,092,895
==============================================================
Net assets applicable to outstanding Class I shares $ 93,521,329 $ 12,454,598 $ 25,471,846 $ 10,001,165
==============================================================
SHARES OUTSTANDING AND NET ASSET VALUE PER SHARE
------------------------------------------------------------------------------------------------------------------------
Class A shares of capital stock outstanding:
162,931; 1,580,265; 1,119,515 and 792,578,
respectively $ 17.68 $ 21.85 $ 21.42 $ 22.74
==============================================================
Class B shares of capital stock outstanding:
213,784; 1,322,463; 1,171,631 and 793,676,
respectively $ 17.07 $ 21.25 $ 21.00 $ 22.34
==============================================================
Class C shares of capital stock outstanding:
69,341; 868,593; 868,226 and 627,034,
respectively $ 17.13 $ 21.24 $ 20.93 $ 22.48
==============================================================
Class I shares of capital stock outstanding:
5,228,627; 558,864; 1,180,543 and 438,178,
respectively $ 17.89 $ 22.29 $ 21.58 $ 22.82
==============================================================
</TABLE>
--------------------------------------------------------------------------------
See accompanying notes to financial statements. 26
<PAGE>
FINANCIAL STATEMENTS (CONTINUED) December 31, 1999
STATEMENTS OF OPERATIONS
<TABLE>
<CAPTION>
Jundt Jundt Jundt Jundt
Growth U.S. Emerging Opportunity Twenty-Five
For the year ended 12/31/99 Fund Growth Fund Fund Fund
----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
INCOME
----------------------------------------------------------------------------------------------------------------------------
Interest $ 669,644 $ 627,411 $ 621,252 $ 452,127
Dividends 137,862 2,640 59,852 15,161
---------------------------------------------------------------
807,506 630,051 681,104 467,288
---------------------------------------------------------------
EXPENSES (note 4)
----------------------------------------------------------------------------------------------------------------------------
Investment adviser fee 971,085 498,766 856,971 452,191
Transfer agent fee 179,402 150,702 158,771 137,590
Administrative fee 194,217 99,253 126,804 83,900
Registration fee 53,085 60,050 53,027 57,413
Legal fees 36,223 16,852 29,308 13,097
Reports to shareholders 27,756 17,320 26,420 11,454
Directors' fees 31,798 16,530 22,087 10,714
Custodian fee 20,142 25,142 24,968 21,601
Audit fees 17,360 12,496 17,331 15,585
Amortization of deferred organizational costs -- 17,345 8,493 6,300
Dividends on short sales -- -- 23,623 --
Account maintenance fee:
Class A 5,438 42,527 48,495 28,656
Class B 4,747 36,013 40,036 22,116
Class C 1,895 23,326 27,015 15,297
Distribution fee:
Class B 14,242 108,038 120,107 66,347
Class C 5,684 69,979 81,046 45,889
Other 23,951 21,364 20,672 17,319
---------------------------------------------------------------
Total expenses before interest expense and
reimbursement 1,587,025 1,215,703 1,685,174 1,005,469
Interest expense (note 5) -- -- 22,033 --
Reimbursement of expenses -- (162,733) (98,770) (119,299)
---------------------------------------------------------------
Expenses after interest expense and
reimbursement 1,587,025 1,052,970 1,608,437 886,170
---------------------------------------------------------------
Net investment loss (779,519) (422,919) (927,333) (418,882)
---------------------------------------------------------------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS
----------------------------------------------------------------------------------------------------------------------------
Net realized gain on investments and futures
transactions (note 3) 22,184,877 14,018,848 13,692,716 3,097,117
Net realized loss on short sale transactions (note 3) -- -- (2,612,549) (1,311,116)
---------------------------------------------------------------
Net realized gain on investments, futures transactions
and short sale transactions 22,184,877 14,018,848 11,080,167 1,786,001
---------------------------------------------------------------
Net change in unrealized appreciation (depreciation)
on investments, futures transactions and short sale
transactions (3,735,147) 15,656,848 12,608,507 12,258,969
---------------------------------------------------------------
Net gain on investments 18,449,730 29,675,696 23,688,674 14,044,970
---------------------------------------------------------------
Net increase in net assets resulting from operations $ 17,670,211 $ 29,252,777 $ 22,761,341 $ 13,626,088
===============================================================
</TABLE>
--------------------------------------------------------------------------------
See accompanying notes to financial statements. 27
<PAGE>
FINANCIAL STATEMENTS (CONTINUED)
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
Jundt Growth Fund
-----------------------------------------------------------------------------------------------------------------
Year ended Year ended
12/31/99 12/31/98
-----------------------------------------------------------------------------------------------------------------
<S> <C> <C>
OPERATIONS
-----------------------------------------------------------------------------------------------------------------
Net investment loss $ (779,519) $ (1,020,460)
Net realized gain on investments, futures transactions and
short sale transactions 22,184,877 16,059,306
Net change in unrealized appreciation (depreciation) on investments, futures
transactions and short sale transactions (3,735,147) 15,406,886
------------------------------
Net increase in net assets resulting from operations 17,670,211 30,445,732
------------------------------
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS
-----------------------------------------------------------------------------------------------------------------
Investment income -- net -- --
Realized capital gains -- net (11,964,526) (16,565,764)
------------------------------
Total dividends and distributions to shareholders (11,964,526) (16,565,764)
------------------------------
CAPITAL SHARE TRANSACTIONS
-----------------------------------------------------------------------------------------------------------------
Net proceeds from shares sold:
Class A shares 2,778,513 349,721
Class B shares 2,981,534 253,844
Class C shares 1,006,465 172,098
Class I shares 550,486 418,518
Distributions reinvested:
Class A shares 302,691 111,672
Class B shares 398,310 83,942
Class C shares 120,451 35,442
Class I shares 7,029,010 10,672,487
Cost of shares redeemed:
Class A shares (1,180,075) (218,461)
Class B shares (196,017) (46,703)
Class C shares (197,887) (45,271)
Class I shares (8,537,293) (17,026,901)
------------------------------
Net increase (decrease) in net assets
from capital share transactions 5,056,188 (5,239,612)
------------------------------
NET ASSETS
-----------------------------------------------------------------------------------------------------------------
Total increase in net assets 10,761,873 8,640,356
Net assets at beginning of year 90,477,263 81,836,907
------------------------------
Net assets at end of year $101,239,136 $ 90,477,263
==============================
</TABLE>
--------------------------------------------------------------------------------
See accompanying notes to financial statements. 28
<PAGE>
December 31, 1999
<TABLE>
<CAPTION>
Jundt U.S. Emerging Growth Fund Jundt Opportunity Fund Jundt Twenty-Five Fund
--------------------------------------------------------------------------------------------------
Year ended Year ended Year ended Year ended Year ended Year ended
12/31/99 12/31/98 12/31/99 12/31/98 12/31/99 12/31/98
--------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
--------------------------------------------------------------------------------------------------
$ (422,919) $ (277,188) $ (927,333) $ (242,312) $ (418,882) $ (32,425)
14,018,848 3,540,329 11,080,167 1,812,334 1,786,001 502,873
15,656,848 4,632,268 12,608,507 9,092,058 12,258,969 1,660,677
--------------------------------------------------------------------------------------------------
29,252,777 7,895,409 22,761,341 10,662,080 13,626,088 2,131,125
--------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------
-- -- -- -- -- (33,217)
(1,642,311) (4,838,503) (527,460) (3,693,953) -- (636,523)
--------------------------------------------------------------------------------------------------
(1,642,311) (4,838,503) (527,460) (3,693,953) -- (669,740)
--------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------
22,402,262 5,541,874 18,074,595 7,610,926 13,633,294 2,918,424
13,762,669 4,835,251 13,005,455 5,002,356 12,178,751 2,056,058
11,732,741 2,295,856 12,772,407 1,973,366 12,400,626 524,732
313,826 321,016 1,329,246 8,867,163 4,830,791 873,435
566,986 1,068,038 152,312 799,925 -- 212,257
421,061 1,322,588 84,270 757,789 -- 167,369
274,515 428,317 79,182 236,036 -- 45,288
52,425 744,262 31,634 1,653,982 -- 197,266
(6,394,869) (1,264,297) (9,979,924) (954,361) (3,057,103) (314,188)
(2,741,316) (2,130,547) (2,601,163) (1,022,932) (397,517) (2,762)
(2,462,824) (1,225,401) (1,441,104) (202,152) (1,627,412) (4,313)
(2,161,675) (4,024,032) (702,741) (286,640) (835,023) (39,328)
--------------------------------------------------------------------------------------------------
35,765,801 7,912,925 30,804,169 24,435,458 37,126,407 6,634,238
--------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------
63,376,267 10,969,831 53,038,050 31,403,585 50,752,495 8,095,623
30,164,744 19,194,913 39,185,673 7,782,088 9,095,663 1,000,040
--------------------------------------------------------------------------------------------------
$ 93,541,011 $ 30,164,744 $ 92,223,723 $ 39,185,673 $ 59,848,158 $ 9,095,663
==================================================================================================
</TABLE>
--------------------------------------------------------------------------------
29
<PAGE>
FINANCIAL STATEMENTS (CONCLUDED)
STATEMENTS OF CHANGES IN NET ASSETS (CONCLUDED)
<TABLE>
<CAPTION>
Jundt Growth Fund
----------------------------
Year ended Year ended
12/31/99 12/31/98
---------------------------------------------------------------------------------
<S> <C> <C>
CAPITAL SHARE TRANSACTIONS
---------------------------------------------------------------------------------
Shares sold:
Class A shares 153,263 20,906
Class B shares 169,676 15,594
Class C shares 57,535 10,773
Class I shares 30,349 25,096
Shares issued for dividends reinvested:
Class A shares 17,208 6,923
Class B shares 23,444 5,343
Class C shares 7,069 2,253
Class I shares 394,888 655,156
Shares redeemed:
Class A shares (64,814) (13,115)
Class B shares (11,056) (2,753)
Class C shares (11,018) (2,969)
Class I shares (468,529) (1,076,518)
----------------------------
Net increase (decrease) in shares outstanding 298,015 (353,311)
============================
</TABLE>
--------------------------------------------------------------------------------
See accompanying notes to financial statements. 30
<PAGE>
December 31, 1999
<TABLE>
<CAPTION>
Jundt U.S. Emerging Growth Fund Jundt Opportunity Fund Jundt Twenty-Five Fund
----------------------------------------------------------------------------------------------
Year ended Year ended Year ended Year ended Year ended Year ended
12/31/99 12/31/98 12/31/99 12/31/98 12/31/99 12/31/98
----------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
----------------------------------------------------------------------------------------------
1,449,388 387,148 1,078,660 541,117 760,275 205,005
901,036 353,188 784,523 353,809 668,221 134,446
798,264 162,620 773,452 138,215 671,051 38,184
21,440 22,537 78,801 696,667 301,229 75,548
27,457 76,343 7,164 52,317 -- 13,616
20,959 96,751 4,042 50,318 -- 10,809
13,671 31,310 3,810 15,704 -- 2,920
2,489 52,302 1,477 107,541 -- 12,629
(435,030) (86,818) (588,445) (69,605) (165,779) (21,540)
(178,206) (164,853) (154,749) (76,346) (20,576) (225)
(168,953) (86,234) (86,642) (15,420) (85,825) (297)
(144,698) (283,626) (40,935) (22,204) (45,119) (3,110)
----------------------------------------------------------------------------------------------
2,307,817 560,668 1,861,158 1,772,113 2,083,477 467,985
==============================================================================================
</TABLE>
--------------------------------------------------------------------------------
31
<PAGE>
NOTES TO FINANCIAL STATEMENTS December 31, 1999
1. ORGANIZATION
The Jundt Funds are registered under the Investment Company Act of 1940 (as
amended) (the "Act") as open-end management investment companies, each of which
has different investment objectives and their own investment portfolios and net
asset values. The Jundt Growth Fund, Inc. ("Growth Fund") commenced operations
on September 3, 1991, as a diversified, closed-end investment company and
converted to an open-end investment company immediately following the close of
business on December 28, 1995. Jundt U.S. Emerging Growth Fund ("U.S. Emerging
Growth Fund"), Jundt Opportunity Fund ("Opportunity Fund") and Jundt Twenty-Five
Fund ("Twenty-Five Fund") are Funds within Jundt Funds, Inc. (the "Company").
The Company accounts separately for the assets, liabilities and operations of
each Fund. U.S. Emerging Growth Fund, a diversified Fund of the Company,
commenced operations on January 2, 1996. Opportunity Fund, a non- diversified
Fund of the Company, commenced operations on December 26, 1996. Twenty-Five
Fund, a non-diversified Fund of the Company, commenced operations on December
31, 1997.
Growth Fund, U.S. Emerging Growth Fund, Opportunity Fund and Twenty-Five Fund
(the "Funds") currently offer shares in four classes (Class A, Class B, Class C
and Class I). Prior to April 22, 1997, Class I shares of each Fund then in
existence were referred to as Class A shares, and the current Class A shares of
each such Fund were referred to as Class D shares. Shares of Class I of U.S.
Emerging Growth Fund, Opportunity Fund and Twenty-Five Fund (which are not
subject to a front-end or deferred sales charge) are available for investment
only by certain individuals and entities associated with the Funds. Class A
shares of each Fund and Class I shares of Growth Fund (which are available only
to persons that may purchase the other Fund's Class I shares and to Growth Fund
shareholders at the time of the open-end conversion) are generally sold with a
front-end sales charge. Shares of Class B and Class C of each Fund may be
subject to a contingent deferred sales charge when redeemed.
All classes of shares have identical liquidation and other rights and the same
terms and conditions except that Class A, Class B, and Class C shares bear
certain expenses related to the account maintenance of such shares and Class B
and Class C shares also bear certain expenses related to the distribution of
such shares. Shareholder servicing costs attributable to a particular class will
be allocated to such class. Each class has exclusive voting rights with respect
to matters relating to its account maintenance and distribution expenditures and
to certain other matters relating exclusively to such class; otherwise, all
classes of shares have the same voting rights.
Growth Fund is authorized to issue up to 10 billion shares, par value $0.01 per
share. The Company is authorized to issue up to 1 trillion shares, par value
$0.01 per share. Currently, 10 billion shares have been designated to each U.S.
Emerging Growth Fund, Opportunity Fund and Twenty-Five Fund.
The investment objective of each Fund is as follows:
* Growth Fund -- to provide long-term capital appreciation by investing
primarily in a diversified portfolio of equity securities of companies that
are believed by Jundt Associates, Inc. (the "Adviser") to have significant
potential for growth in revenue and earnings.
* U.S. Emerging Growth Fund -- to provide long-term capital appreciation by
investing primarily in a diversified portfolio of equity securities of
emerging growth companies that are believed by the Adviser to have
significant potential for growth in revenue and earnings.
* Opportunity Fund -- to provide capital appreciation by employing an
aggressive yet flexible investment program emphasizing investments in
domestic companies that are believed by the Adviser to have significant
potential for capital appreciation.
* Twenty Five Fund -- to provide long term capital appreciation by investing in
a core portfolio of approximately 20 to 30 issues of common stock.
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The significant accounting policies followed by the Funds
are as follows:
INVESTMENT IN SECURITIES
Investment in securities traded on U.S. securities exchanges or included in a
national market system and open short sales transactions are valued at the last
quoted sales price as of the close of business on the date of valuation or,
lacking any sales, at the mean between the most recently quoted bid and asked
prices. Securities traded in the over-the-counter market are valued at the mean
between the most recently quoted bid and asked prices. Options and futures
contracts are valued at market value or fair value if no market exists, except
that
32
<PAGE>
NOTES TO FINANCIAL STATEMENTS (CONTINUED) December 31, 1999
open futures contracts sales are valued using the closing settlement price or,
in the absence of such a price, the most recently quoted asked price. Other
securities for which market quotations are not readily available are valued at
fair value in good faith by or under the direction of the Board of Directors.
Short-term securities with maturities of fewer than 60 days when acquired, or
which subsequently are within 60 days of maturity, are valued at amortized cost,
which approximates market value.
Security 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. Interest income,
including level-yield amortization of discount, is accrued daily.
FEDERAL TAXES
The Funds intend to comply with the requirements of the Internal Revenue Code
applicable to regulated investment companies and also intend to distribute
substantially all of their investment company taxable income to shareholders.
Therefore, no income tax provision is required. In addition, on a calendar year
basis, the Funds will make sufficient distributions of their net investment
income and realized gains, if any, to avoid the payment of any federal excise
taxes.
Net investment income (loss) and net realized gains (losses) may differ for
financial statement and tax purposes primarily due to wash sales and net
operating losses. The character of distributions made during the period from net
investment income or net realized gains, if any, may differ from their ultimate
characterization for federal income tax purposes. Also, due to the timing of
dividend distributions, the period in which amounts are distributed may differ
from the year the income or realized gains (losses) were recorded by the Funds.
On the statement of assets and liabilities, as a result of permanent book-to-tax
differences, the following reclassifications were made. Growth Fund --
accumulated net investment loss has been decreased by $779,556, resulting in a
reclassification adjustment to decrease accumulated net realized gain by
$779,519 and decrease paid-in capital by $37; U.S. Emerging Growth Fund --
accumulated net investment loss has been decreased by $273,962, resulting in a
reclassification adjustment to decrease accumulated net realized gain by
$256,617 and decrease paid-in capital by $17,345; Opportunity Fund --
accumulated net investment loss has been decreased by $666,038, resulting in a
reclassification adjustment to decrease accumulated net realized gain by
$658,843 and decrease paid-in capital by $7,195; Twenty-Five Fund -- accumulated
net investment loss has been decreased by $418,882, resulting in a
reclassification adjustment to decrease accumulated net realized gain by
$412,582 and decrease paid-in capital by $6,300.
REPURCHASE AGREEMENTS
The Funds may enter into repurchase agreements with member banks of the Federal
Reserve System or primary dealers in U.S. government securities. Under such
agreements, the bank or primary dealer agrees to repurchase the security (U.S.
government securities) at a mutually agreed upon time and price. The Funds take
possession of the underlying securities, mark to market such securities daily
and, if necessary, receive additional securities to ensure that the contract is
adequately collateralized.
DERIVATIVE FINANCIAL INSTRUMENTS AND OTHER INVESTMENT STRATEGIES The Funds may
engage in various portfolio strategies to hedge against changes in net asset
value or to attempt to realize a greater current return.
OPTIONS TRANSACTIONS: For hedging purposes, the Funds may purchase and sell put
and call options on its portfolio securities. Opportunity Fund and Twenty-Five
Fund may also use options for purposes of increasing investment return.
The risk associated with purchasing an option is that the Funds pay a premium
whether or not the option is exercised. Additionally, the Funds bear the risk of
loss of premium and change in market value should the conterparty not perform
under the contract. Put and call options purchased are accounted for in the same
manner as portfolio securities. The cost of securities acquired through the
exercise of call options is increased by the premiums paid. The proceeds from
securities sold through the exercise of put options are decreased by the premium
paid.
When the Funds write an option, the premium received by the Funds is recorded as
a liability and is subsequently adjusted to the current market value of the
option written. Premiums received from writing options which expire unexercised
are recorded by the Funds on the expiration date as realized gains from option
transactions. The difference between the premium received and the amount paid on
effecting a closing purchase transaction, including brokerage commissions, is
also treated as a realized gain, or if the premium is less than the amount
33
<PAGE>
NOTES TO FINANCIAL STATEMENTS (CONTINUED) December 31, 1999
paid for the closing purchase transaction, as a realized loss. If a call option
is exercised, the premium is added to the proceeds from the sale of the
underlying security in determining whether the Funds have realized a gain or
loss. If a put option is exercised, the premium reduces the cost basis of the
security purchased by the Funds. In writing an option, the Funds bear the market
risk of an unfavorable change in the price of the security underlying the
written option. Exercise of an option written by the Funds could result in the
Funds selling or buying a security at a price different from the current market
price.
FINANCIAL FUTURES CONTRACTS: The Funds may purchase or sell financial futures
contracts for hedging purposes. Opportunity Fund and Twenty-Five Fund may also
use financial futures contracts for purposes of increasing investment return. A
futures contract is an agreement between two parties to buy or sell a security
for a set price on a future date. Upon entering into a contract, the Funds
deposit and maintain as collateral such initial margin as required by the
exchange on which the transaction is effected. Pursuant to the contract, the
Funds agree to receive from or pay to the broker an amount of cash equal to the
daily fluctuation in the value of the contract. Such receipts or payments are
known as variation margin and are recorded by the Funds as unrealized gains or
losses. When the contract is closed, the Funds record a realized gain or loss
equal to the difference between the value of the contract at the time it was
opened and the value at the time it was closed.
SHORT SALE TRANSACTIONS: Opportunity Fund and Twenty-Five Fund may engage in
short-selling which obligates the Fund to replace the security borrowed by
purchasing the security at current market value. The Fund will incur a loss if
the price of the security increases between the date of the short sale and the
date on which the Fund replaces the borrowed security. The Fund realizes a gain
if the price of the security declines between those dates. Until the Fund
replaces the borrowed security, it will maintain daily, a segregated account
with a broker and/or custodian, of cash and/or other liquid securities
sufficient to cover its short position. Securities sold short at December 31,
1999, and their related market values and proceeds are set forth in the Notes to
Schedule of Investments.
DISTRIBUTIONS TO SHAREHOLDERS
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 of
each Fund.
EXPENSES
Expenses directly attributable to each Fund are charged to that Fund's
operations; expenses which are applicable to all Funds are allocated among the
Funds on a pro rata basis.
DEFERRED ORGANIZATION AND OFFERING COSTS
Organization costs were incurred in connection with the start-up and initial
registration of U.S. Emerging Growth Fund, Opportunity Fund and Twenty-Five
Fund. These costs are being amortized over 60 months on a straight-line basis
from the commencement of investment operations of such Fund. In the event any of
the initial shares are redeemed during the period that the Funds are amortizing
their organizational costs, the redemption proceeds payable will be reduced by
the unamortized organizational costs in the same ratio as the number of initial
shares being redeemed to the number of initial shares outstanding as the time of
redemption.
Offering costs were capitalized by the Funds and amortized over twelve months
commencing with operations.
USE OF ESTIMATES
The preparation of financial statements in conformity with generally accepted
accounting principles requires management to make estimates and assumptions that
affect the reported amounts in the financial statements. Actual results could
differ from those estimates.
3. INVESTMENT SECURITY TRANSACTIONS
For the year ended December 31, 1999, for Growth Fund, U.S. Emerging Growth
Fund, Opportunity Fund and Twenty-Five Fund, the cost of purchases and proceeds
from sales of securities, other than temporary investments in short-term
securities, were as follows:
Cost of Proceeds
Purchases from Sales
--------------------------------------------------------------------------------
Growth Fund $105,859,495 $140,922,286
U.S. Emerging
Growth Fund $ 88,714,009 $100,677,045
Opportunity Fund
Long-term investment
transactions $174,463,318 $173,420,454
Short sale transactions $ 86,905,721 $ 82,292,392
Twenty-Five Fund $ 70,499,693 $ 54,054,573
================================================================================
34
<PAGE>
NOTES TO FINANCIAL STATEMENTS (CONTINUED) December 31, 1999
4. INVESTMENT ADVISORY AND ADMINISTRATION AGREEMENTS AND TRANSACTIONS WITH
AFFILIATES
The Funds have entered into investment advisory agreements with the Adviser. The
Adviser is responsible for the management of each Fund's portfolio and provides
the necessary personnel, facilities, equipment and certain other services
necessary to the operations of each Fund. For such services, each Fund pays a
monthly investment advisory fee calculated at the following annualized rates:
Growth Fund and U.S. Emerging Growth Fund -- 1% of each Fund's average daily net
assets; Opportunity Fund and Twenty-Five Fund -- 1.3% of each Fund's average
daily net assets. The Adviser has voluntarily agreed to pay certain expenses in
U.S. Emerging Growth Fund, Opportunity Fund and Twenty-Five Fund. Such voluntary
expense reimbursement may be discontinued or modified at the Adviser's sole
discretion.
Jundt Funds, Inc. entered into administration agreements with Princeton
Administrators, L.P. (the "Administrator") which provided the Administrator with
a monthly administrative fee equal to an annualized rate of 0.20% of each Fund's
average daily net assets (subject to an annual minimum fee of $40,000 for each
Fund for the period January 1, 1999 through July 31, 1999 and $125,000 for each
Fund for the period August 1, 1999 through December 31, 1999). The Growth Fund's
administration agreement provided the Administrator with a monthly
administrative fee equal to an annualized rate of 0.20% of the Fund's average
daily net assets, subject to an annual minimum fee of $125,000. For its fee, the
Administrator provides certain administrative, accounting, clerical and record
keeping services for each Fund.
The Funds have entered into distribution agreements with U.S. Growth
Investments, Inc. (the "Distributor"), an affiliate of the Adviser. The
Distributor serves as the principal underwriter of each Fund's shares. Pursuant
to the Distribution Plans adopted by each Fund in accordance with Rule 12b-1
under the Act, each Fund pays the Distributor ongoing account maintenance and
distribution fees. The fees are accrued daily and paid monthly at annual rates
based upon the average daily net assets of each Fund's share classes as follows:
Account
Maintenance Distribution
Fee Fee
--------------------------------------------------------------------------------
Class A 0.25% --
Class B 0.25% 0.75%
Class C 0.25% 0.75%
================================================================================
In addition to the investment management fee, the administrative fee and account
maintenance and distribution fees, each Fund is responsible for paying most
other operating expenses, including 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.
Legal fees of $36,223 for the year ended December 31, 1999, for Growth Fund,
$16,852 for U.S. Emerging Growth Fund, $29,308 for Opportunity Fund and $13,097
for Twenty-Five Fund were incurred for a law firm of which the secretary of each
Fund is a partner. Certain officers and/or directors of each Fund are officers
and/or directors of the Adviser and/or the Distributor. The Company and Growth
Fund pay each director who is not an "affiliated person" as defined in the Act a
combined fee of $13,000 per year plus $1,300 for each meeting attended.
5. BANK BORROWING
The Opportunity Fund and Twenty-Five Fund entered into a joint Line of Credit
Agreement with Norwest Bank, Minnesota, N.A., for an amount not to exceed
jointly the lesser of $7,000,000 or 30% of the Fund's assets. For the year ended
December 31, 1999, the Opportunity Fund's average daily balance of loans
outstanding was $270,025 at a weighted average interest rate of 8.16%. The
maximum amount of loans outstanding at any time during the period was
$6,720,000, or 7.53% of total assets. The loans were collateralized by certain
Opportunity Fund investments. The Twenty-Five Fund did not have any loans
outstanding for the year ended December 31, 1999.
35
<PAGE>
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
6. FINANCIAL HIGHLIGHTS -- GROWTH FUND AND U.S. EMERGING GROWTH FUND
Per share data for a share of capital stock outstanding throughout each period
and selected supplemental and ratio information for each period indicated,
calculated based on average shares outstanding, are as follows.
<TABLE>
<CAPTION>
Net Realized
Beginning and Dividends Distributions
Net Asset Net Unrealized from Net from Net
Value Per Investment Gain (Loss) on Investment Realized
Share Loss Investments Income Gains
--------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
GROWTH FUND
Class A
Year ended 12/31/99 $ 16.66 (0.18) 3.45 -- (2.25)
Year ended 12/31/98 $ 14.20 (0.24) 6.22 -- (3.52)
Year ended 12/31/97 $ 13.64 (0.23) 1.64 -- (0.85)
Year ended 12/31/96 $ 11.95 (0.26) 2.03 -- (0.08)
Class B
Year ended 12/31/99 $ 16.23 (0.30) 3.33 -- (2.19)
Year ended 12/31/98 $ 13.99 (0.35) 6.11 -- (3.52)
Year ended 12/31/97 $ 13.56 (0.32) 1.60 -- (0.85)
Year ended 12/31/96 $ 11.95 (0.36) 2.05 -- (0.08)
Class C
Year ended 12/31/99 $ 16.25 (0.30) 3.34 -- (2.16)
Year ended 12/31/98 $ 13.97 (0.35) 6.15 -- (3.52)
Year ended 12/31/97 $ 13.54 (0.30) 1.58 -- (0.85)
Year ended 12/31/96 $ 11.95 (0.36) 2.03 -- (0.08)
Class I
Year ended 12/31/99 $ 16.83 (0.14) 3.49 -- (2.29)
Year ended 12/31/98 $ 14.28 (0.20) 6.27 -- (3.52)
Year ended 12/31/97 $ 13.69 (0.19) 1.63 -- (0.85)
Year ended 12/31/96 $ 11.95 (0.23) 2.05 -- (0.08)
Year ended 12/31/95 $ 14.95 (0.12) 2.71 -- (5.59)
U.S. EMERGING GROWTH FUND
Class A
Year ended 12/31/99 $ 14.96 (0.08) 7.39 -- (0.42)
Year ended 12/31/98 $ 13.09 (0.17) 5.02 -- (2.98)
Year ended 12/31/97 $ 12.42 (0.11) 4.09 -- (3.31)
Period from 1/2/96* to 12/31/96 $ 10.00 (0.14) 4.47 -- (1.91)
Class B
Year ended 12/31/99 $ 14.62 (0.19) 7.18 -- (0.36)
Year ended 12/31/98 $ 12.90 (0.27) 4.92 -- (2.93)
Year ended 12/31/97 $ 12.37 (0.21) 4.05 -- (3.31)
Period from 1/2/96* to 12/31/96 $ 10.00 (0.24) 4.52 -- (1.91)
Class C
Year ended 12/31/99 $ 14.63 (0.19) 7.17 -- (0.37)
Year ended 12/31/98 $ 12.88 (0.27) 4.94 -- (2.92)
Year ended 12/31/97 $ 12.36 (0.21) 4.04 -- (3.31)
Period from 1/2/96* to 12/31/96 $ 10.00 (0.24) 4.51 -- (1.91)
Class I
Year ended 12/31/99 $ 15.22 (0.04) 7.55 -- (0.44)
Year ended 12/31/98 $ 13.25 (0.13) 5.10 -- (3.00)
Year ended 12/31/97 $ 12.51 (0.07) 4.12 -- (3.31)
Period from 1/2/96* to 12/31/96 $ 10.00 (0.11) 4.53 -- (1.91)
</TABLE>
*Commencement of operations.
(1)Total investment return is based on the change in net asset value of a share
during the period, assumes reinvestment of distributions and excludes the
effects of sales loads. Total investment returns prior to December 29, 1995,
report performance of the Growth Fund as a closed-end fund (assuming dividend
reinvestment pursuant to the Growth Fund's Dividend Reinvestment Plan as then
in effect); as an open-end Fund, the Growth Fund incurs certain additional
expenses as a result of the continuous offering and redemption of its shares.
Total investment returns for periods of less than one full year are not
annualized.
(2)Adjusted to an annual basis.
36
<PAGE>
December 31, 1999
<TABLE>
<CAPTION>
Ratio to Average Net Assets
--------------------------------------
Ending
Net Asset Net Portfolio Net Assets at
Value Per Investment Net Gross Total Turnover End of Period
Share Loss Expenses Expenses Return(1) Rate (000s Omitted)
------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
$ 17.68 (0.97)% 1.81% 1.81% 19.71% 127% $ 2,880
$ 16.66 (1.45)% 2.14% 2.14% 42.90% 78% $ 954
$ 14.20 (1.49)% 2.18% 2.18% 10.67% 115% $ 604
$ 13.64 (1.81)% 2.13% 2.13% 14.81% 57% $ 340
$ 17.07 (1.70)% 2.56% 2.56% 18.72% 127% $ 3,650
$ 16.23 (2.18)% 2.89% 2.89% 41.98% 78% $ 515
$ 13.99 (2.28)% 2.93% 2.93% 9.77% 115% $ 189
$ 13.56 (2.53)% 2.88% 2.88% 14.14% 57% $ 37
$ 17.13 (1.72)% 2.56% 2.56% 18.82% 127% $ 1,188
$ 16.25 (2.15)% 2.89% 2.89% 42.32% 78% $ 256
$ 13.97 (2.32)% 2.93% 2.93% 9.82% 115% $ 80
$ 13.54 (2.49)% 2.88% 2.88% 13.97% 57% $ 2
$ 17.89 (0.77)% 1.56% 1.56% 19.97% 127% $ 93,521
$ 16.83 (1.23)% 1.89% 1.89% 43.30% 78% $ 88,752
$ 14.28 (1.22)% 1.93% 1.93% 10.85% 115% $ 80,964
$ 13.69 (1.56)% 1.88% 1.88% 15.22% 57% $ 96,458
$ 11.95 (0.72)% 1.60% 1.60% 17.81% 155% $140,642
$ 21.85 (0.25)% 1.80% 2.13% 49.04% 248% $ 34,531
$ 14.96 (1.16)% 1.80% 2.93% 38.65% 197% $ 8,058
$ 13.09 (0.88)% 1.80% 3.35% 33.54% 264% $ 2,117
$ 12.42 (1.36)%(2) 1.80%(2) 3.83%(2) 43.40% 204% $ 1,275
$ 21.25 (1.00)% 2.55% 2.88% 47.96% 248% $ 28,106
$ 14.62 (1.91)% 2.55% 3.68% 37.64% 197% $ 8,462
$ 12.90 (1.63)% 2.55% 4.10% 32.55% 264% $ 3,786
$ 12.37 (2.15)%(2) 2.55%(2) 3.62%(2) 42.90% 204% $ 1,709
$ 21.24 (1.00)% 2.55% 2.88% 47.88% 248% $ 18,450
$ 14.63 (1.91)% 2.55% 3.68% 37.82% 197% $ 3,301
$ 12.88 (1.63)% 2.55% 4.10% 32.50% 264% $ 1,519
$ 12.36 (2.13)%(2) 2.55%(2) 4.32%(2) 42.82% 204% $ 1,766
$ 22.29 (0.00)% 1.55% 1.88% 49.51% 248% $ 12,455
$ 15.22 (0.91)% 1.55% 2.68% 39.06% 197% $ 10,344
$ 13.25 (0.63)% 1.55% 3.10% 33.87% 264% $ 11,773
$ 12.51 (1.09)%(2) 1.55%(2) 3.44%(2) 44.32% 204% $ 9,025
</TABLE>
37
<PAGE>
NOTES TO FINANCIAL STATEMENTS (CONCLUDED)
6. FINANCIAL HIGHLIGHTS (CONCLUDED) -- OPPORTUNITY FUND AND TWENTY-FIVE FUND
Per share data for a share of capital stock outstanding throughout each period
and selected supplemental and ratio information for each period indicated,
calculated based on average shares outstanding, are as follows:
<TABLE>
<CAPTION>
Net Realized
Beginning and Dividends Distributions
Net Asset Net Unrealized from Net from Net
Value Per Investment Gain (Loss) on Investment Realized
Share Loss Investments Income Gains
----------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
OPPORTUNITY FUND
Class A
Year ended 12/31/99 $ 15.84 (0.20) 5.92 -- (0.14)
Year ended 12/31/98 $ 11.03 (0.17) 6.81 -- (1.83)
Year ended 12/31/97 $ 9.87 (0.17) 4.12 -- (2.79)
Period from 12/26/96* to 12/31/96 $ 10.00 -- (0.13) -- --
Class B
Year ended 12/31/99 $ 15.60 (0.33) 5.81 -- (0.08)
Year ended 12/31/98 $ 10.94 (0.27) 6.73 -- (1.80)
Year ended 12/31/97 $ 9.87 (0.26) 4.12 -- (2.79)
Period from 12/26/96* to 12/31/96 $ 10.00 -- (0.13) -- --
Class C
Year ended 12/31/99 $ 15.56 (0.33) 5.80 -- (0.10)
Year ended 12/31/98 $ 10.93 (0.27) 6.71 -- (1.81)
Year ended 12/31/97 $ 9.87 (0.25) 4.10 -- (2.79)
Period from 12/26/96* to 12/31/96 $ 10.00 -- (0.13) -- --
Class I
Year ended 12/31/99 $ 15.93 (0.16) 5.98 -- (0.17)
Year ended 12/31/98 $ 11.06 (0.14) 6.85 -- (1.84)
Year ended 12/31/97 $ 9.87 (0.14) 4.12 -- (2.79)
Period from 12/26/96* to 12/31/96 $ 10.00 -- (0.13) -- --
TWENTY-FIVE FUND
Class A
Year ended 12/31/99 $ 16.06 (0.17) 6.85 -- --
Year ended 12/31/98 $ 10.00 (0.15) 7.63 (0.07) (1.35)
Class B
Year ended 12/31/99 $ 15.89 (0.32) 6.77 -- --
Year ended 12/31/98 $ 10.00 (0.27) 7.57 (0.06) (1.35)
Class C
Year ended 12/31/99 $ 15.96 (0.32) 6.84 -- --
Year ended 12/31/98 $ 10.00 (0.25) 7.58 (0.02) (1.35)
Class I
Year ended 12/31/99 $ 16.07 (0.12) 6.87 -- --
Year ended 12/31/98 $ 10.00 (0.10) 7.61 (0.09) (1.35)
</TABLE>
*Commencement of operations.
(1)For Opportunity Fund, excluding interest expense, net of reimbursement.
(2)For Opportunity Fund, excluding interest expense, before reimbursement.
(3)For Opportunity Fund, including interest expense, before reimbursement.
(4)Total investment return is based on the chantge in net asset value of a share
during the period, asssumes reinvestment of distributions and excludes the
effects of sales loads. Total investment returns for periods of less than one
full year are not annualized.
(5)Adjusted to an annual basis.
38
<PAGE>
December 31, 1999
<TABLE>
<CAPTION>
Ratio to Average Net Assets
-------------------------------------------------------------
Ending
Net Asset Net Gross Expenses Portfolio Net Assets at
Value Per Investment Net Gross Including Total Turnover End of Period
Share Loss Expenses(1) Expenses(2) Interest Expense(3) Return(4) Rate (000s Omitted)
---------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
$ 21.42 (1.11)% 2.14% 2.29% 2.32% 36.11% 318% $23,977
$ 15.84 (1.28)% 2.14% 3.35% 3.45% 60.83% 376% $ 9,852
$ 11.03 (1.71)% 2.14% 6.57% 6.85% 41.15% 298% $ 1,084
$ 9.87 (2.14)%(5) 2.14%(5) 4.23%(5) 4.23%(5) (1.30)% 0% $ 112
$ 21.00 (1.86)% 2.89% 3.04% 3.07% 35.10% 318% $24,604
$ 15.60 (2.03)% 2.89% 4.10% 4.20% 59.60% 376% $ 8,388
$ 10.94 (2.36)% 2.89% 7.32% 7.50% 40.25% 298% $ 2,298
$ 9.87 (2.98)%(5) 2.89%(5) 4.98%(5) 4.98%(5) (1.30)% 0% $ 1
$ 20.93 (1.86)% 2.89% 3.04% 3.07% 35.13% 318% $18,171
$ 15.56 (2.06)% 2.89% 4.10% 4.20% 59.53% 376% $ 2,764
$ 10.93 (2.49)% 2.89% 7.32% 7.63% 40.12% 298% $ 427
$ 9.87 (3.02)%(5) 2.89%(5) 4.98%(5) 4.98%(5) (1.30)% 0% $ 1
$ 21.58 (0.86)% 1.89% 2.04% 2.08% 36.55% 318% $25,472
$ 15.93 (1.04)% 1.89% 3.10% 3.20% 61.29% 376% $18,182
$ 11.06 (1.56)% 1.89% 6.32% 6.70% 41.45% 298% $ 3,973
$ 9.87 (1.89)%(5) 1.89%(5) 3.98%(5) 3.98%(5) (1.30)% 0% $ 286
$ 22.74 (0.94)% 2.25% 2.63% N/A 41.59% 213% $18,020
$ 16.06 (1.06)% 2.25% 9.37% N/A 75.21% 294% $ 3,181
$ 22.34 (1.69)% 3.00% 3.38% N/A 40.59% 213% $17,734
$ 15.89 (1.78)% 3.00% 10.12% N/A 73.37% 294% $ 2,321
$ 22.48 (1.69)% 3.00% 3.38% N/A 40.85% 213% $14,093
$ 15.96 (1.81)% 3.00% 10.12% N/A 73.69% 294% $ 667
$ 22.82 (0.69)% 2.00% 2.38% N/A 42.00% 213% $10,001
$ 16.07 (0.74)% 2.00% 9.12% N/A 75.43% 294% $ 2,926
</TABLE>
39
<PAGE>
INDEPENDENT AUDITORS' REPORT
THE BOARD OF DIRECTORS AND SHAREHOLDERS
The Jundt Growth Fund, Inc. and Jundt Funds, Inc.:
We have audited the accompanying statements of assets and liabilities, including
the schedules of investments of The Jundt Growth Fund, Inc. and Jundt U.S.
Emerging Growth Fund, Jundt Opportunity Fund and Jundt Twenty-Five Fund (Funds
within Jundt Funds, Inc.) as of December 31, 1999, and the related statements of
operations for the year then ended, statements of changes in net assets for each
of the years in the two-year period then ended and the financial highlights for
the periods presented in note 6 to the financial statements. These financial
statements and the financial highlights are the responsibility of the Funds'
management. Our responsibility is to express an opinion on these financial
statements and the 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 and financial highlights. Investment securities held in custody are
confirmed to us by the custodian. As to securities purchased and sold but not
received or delivered, we request confirmations from brokers and, where replies
are not received, we carry out other appropriate auditing procedures. 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, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of The
Jundt Growth Fund, Inc., Jundt U.S. Emerging Growth Fund, Jundt Opportunity Fund
and Jundt Twenty-Five Fund as of December 31, 1999, results of their operations,
changes in their net assets and financial highlights for the periods stated in
the first paragraph above, in conformity with generally accepted accounting
principles.
KPMG LLP
February 4, 2000
40
<PAGE>
FEDERAL TAX INFORMATION (UNAUDITED)
Information for federal income tax purposes is presented as an aid to
shareholders in reporting the dividend distributions for the year ended December
31, 1999, shown below. Shareholders should consult a tax adviser on how to
report these distributions for federal and state income tax purposes.
None of the ordinary income distributions paid by the Funds during the year
ended December 31, 1999, qualify for the dividends received deduction for
corporations.
Per share distributions are as follows (distributions of short-term capital
gains are included in ordinary income):
<TABLE>
<CAPTION>
Qualifying Non-Qualifying Total
Record Payable Ordinary Ordinary Ordinary Long-Term
Date Date Income Income Income Capital Gains*
-----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
GROWTH FUND
Class I 12/22/99 12/31/99 $ 0.02361 $ 1.46829 $ 1.49190 $ 0.79778
Class B 12/22/99 12/31/99 $ 0.02201 $ 1.36873 $ 1.39074 $ 0.79778
Class C 12/22/99 12/31/99 $ 0.02165 $ 1.34676 $ 1.36841 $ 0.79778
Class A 12/22/99 12/31/99 $ 0.02301 $ 1.43129 $ 1.45430 $ 0.79778
OPPORTUNITY FUND
Class I 12/22/99 12/31/99 $ 0.01827 $ 0.15329 $ 0.17156 $ --
Class B 12/22/99 12/31/99 $ 0.00807 $ 0.06766 $ 0.07573 $ --
Class C 12/22/99 12/31/99 $ 0.01023 $ 0.08583 $ 0.09606 $ --
Class A 12/22/99 12/31/99 $ 0.01482 $ 0.12436 $ 0.13918 $ --
U.S. EMERGING GROWTH
Class I 12/22/99 12/31/99 $ -- $ 0.44037 $ 0.44037 $ --
Class B 12/22/99 12/31/99 $ -- $ 0.36128 $ 0.36128 $ --
Class C 12/22/99 12/31/99 $ -- $ 0.37293 $ 0.37293 $ --
Class A 12/22/99 12/31/99 $ -- $ 0.42237 $ 0.42237 $ --
</TABLE>
*All of the long-term capital gain distributions are subject to the 20% tax
rate.
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