<PAGE>
JUNDT GROWTH FUND
SEMI-ANNUAL REPORT
JUNE 30, 1996
SEARCHING TODAY FOR THE GENIUSES OF TOMORROW-SM-
<PAGE>
LETTER TO SHAREHOLDERS
- --------------------------------------------------------------------------------
DEAR SHAREHOLDER,
The Jundt Growth Fund seeks to provide strong investment returns by identifying
and investing in 30 to 50 companies we believe to be among the fastest-growing
in America, with an emphasis on companies with annual revenues greater than
$750 million. Such companies have historically provided above-average returns,
but are subject to significant volatility in stock price. This aggressive growth
investment strategy is most appropriate for investors with a longer time horizon
and who are willing to tolerate the risk of significant volatility.
REVIEW OF THE FIRST HALF OF 1996 AND MARKET OUTLOOK
During the past six months, the Jundt Growth Fund has demonstrated returns
better than the Russell 1000 Index, as shown in the attached graph. During the
first several months of the year, the Fund held a large cash position to prepare
for redemptions after the late 1995 conversion to an open-end mutual fund. This
large cash position in a rapidly rising market limited the early 1996 gains, but
excellent performance in the second quarter pulled the Fund ahead of the general
market.
We are pleased to report that during 1996 we have invested in companies that
have generally met or exceeded their projected performance. Many growth
companies have disappointed their investors, creating general market pressure on
this group. But most of our portfolio companies continue to meet our selection
target of revenue growth in excess of 15% annually.
In the midst of the recent stock market volatility, we rely on a long-term
approach to investment. We believe that the current economic outlook for a
steady slow-growth economy is positive for growth stocks. Investments in key
industries and specific companies that have demonstrated an ability to grow
their revenues faster than the economy may result in above-average long-term
returns. The companies in which we invest are generally changing their
industries and the nature of everyday life in the U.S.
The communications industry is experiencing dynamic change in part due to the
evolution of both the Internet and corporate intranets. We have identified key
companies that are growing rapidly within this industry. We believe the
opportunities in such emerging technology companies to be extraordinary. We
continue to believe in the retail transformation throughout the country with the
emergence of national chains such as PetSmart and Home Depot, which represent
3.6% and 4.7%, respectively, of the Fund's net assets. For the first time in
many years, we are again investing in oil service companies. The companies that
survived the contraction in oil capital expenditures over the past 15 years are
once again experiencing higher revenues due to less capacity in the industry and
the technological advances that have lowered discovery and production costs. We
have recently reduced our investments in HMOs and other managed care
organizations as some of these organizations are beginning to experience
significant price competition.
Thank you for allowing us to serve you by helping you invest in some of the
fastest-growing companies in America. We respect our obligation to our
shareholders and pledge to you our most diligent efforts in the care of your
investment.
/s/ James R. Jundt
JAMES R. JUNDT
CHAIRMAN
<PAGE>
PERFORMANCE DATA
- --------------------------------------------------------------------------------
INDUSTRY SECTORS REPRESENTED IN THE FUNDS'S PORTFOLIO ON JUNE 30, 1996 (AS A
PERCENTAGE OF NET ASSETS)
- --------------------------------------------------------------------------------
TELECOMMUNICATIONS
20.1%
COMPUTER SERVICES/
SOFTWARE/NETWORKING
RETAIL 24.5%
21.1%
RESTAURANT MISCELLANEOUS
6.9% 7.3%
HEALTHCARE
18.7%
TOTAL RETURN BASED ON A $10,000 INVESTMENT
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SIX MONTHS 1996
------------------------------------------------------------------------------
JAN FEB MAR APR MAY JUNE
--------- --------- --------- --------- --------- ---------
<S> <C> <C> <C> <C> <C> <C>
JUNDT GROWTH FUND 9,958.16 10,150.63 10,142.26 10,794.98 11,020.92 11,121.34*
CLASS A SHARES*
RUSSELL 1000 INDEX 10,323.26 10,457.59 10,551.28 10,712.02 10,969.50 10,981.56
</TABLE>
*Does not reflect the deduction of the maximum front-end sales charge of 5.25%
<PAGE>
JUNDT ASSOCIATES' APPROACH TO GROWTH STOCK INVESTING
- --------------------------------------------------------------------------------
JUNDT ASSOCIATES IS GROWTH-ORIENTED; OUR FOCUS IS ON COMPANIES GENERATING
significant revenue increases. We believe the U.S. economy's heterogeneous
nature and multitrillion dollar size generally afford investors significant
growth opportunities. We emphasize the fundamental prospects of individual
companies rather than macroeconomic trends. In the Fund, concentration is placed
on medium to large-capitalization companies, with at least half the equity
securities consisting of companies with annual revenues greater than $750
million. Within these parameters, the 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 that we
believe will achieve annual rates of revenue growth of 15% or greater.
<PAGE>
JUNDT GROWTH FUND, INC.
SCHEDULE OF INVESTMENTS (UNAUDITED) JUNE 30, 1996
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
COMMON STOCKS
INDUSTRY DESCRIPTION AND ISSUE NUMBER OF SHARES COST MARKET VALUE (a)
- --------------------------------------------------------------------------------------------------------------
CLIENT SERVER SOFTWARE (4.3%)
- --------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
HBO & Co. 37,000 $ 2,185,312 $ 2,506,750
Peoplesoft Inc. (b) 30,000 1,315,005 2,137,500
-------------------------------
3,500,317 4,644,250
-------------------------------
COMPUTER SERVICES/SOFTWARE (10.5%)
- --------------------------------------------------------------------------------------------------------------
3Com Corp. (b) 46,800 2,070,900 2,141,100
cisco Systems, Inc. (b) 67,100 3,135,866 3,799,537
Computer Sciences Corp. (b) 20,800 1,600,219 1,554,800
Microsoft Corp. (b) 31,800 2,970,815 3,819,975
-------------------------------
9,777,800 11,315,412
-------------------------------
DATABASE SOFTWARE (3.8%)
- --------------------------------------------------------------------------------------------------------------
Oracle Systems Corp. (b) 104,175 3,234,364 4,108,402
-------------------------------
ELECTRONICS (2.0%)
- --------------------------------------------------------------------------------------------------------------
Hewlett Packard Co. 21,500 2,032,243 2,141,937
-------------------------------
ENERGY (3.0%)
- --------------------------------------------------------------------------------------------------------------
Baker Hughes, Inc. 34,500 1,100,978 1,134,187
Schlumberger, Ltd. 12,700 1,082,818 1,069,975
Smith International, Inc. (b) 35,200 1,102,488 1,060,400
-------------------------------
3,286,284 3,264,562
-------------------------------
HEALTHCARE SERVICES (3.8%)
- --------------------------------------------------------------------------------------------------------------
Oxford Health Plans, Inc. (b) 48,900 2,013,856 2,011,013
Phycor Inc. (b) 12,150 358,425 461,700
United Healthcare Corp. 32,200 1,953,629 1,626,100
-------------------------------
4,325,910 4,098,813
-------------------------------
INTERACTIVE MEDIA (0.9%)
- --------------------------------------------------------------------------------------------------------------
CUC International, Inc. (b) 27,800 994,823 986,900
-------------------------------
</TABLE>
See accompanying notes to schedule of investments.
<PAGE>
JUNDT GROWTH FUND, INC.
SCHEDULE OF INVESTMENTS (UNAUDITED)(CONTINUED) JUNE 30, 1996
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
COMMON STOCKS (CONTINUED)
INDUSTRY DESCRIPTION AND ISSUE NUMBER OF SHARES COST MARKET VALUE (a)
- --------------------------------------------------------------------------------------------------------------
INTERNET TECHNOLOGY (5.9%)
- --------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Intuit, Inc. (b) 47,100 $ 3,297,737 $ 2,225,475
Netscape Communications Corp. (b) 38,100 2,464,240 2,371,725
UUNET Technologies, Inc. (b) 27,000 1,093,263 1,788,750
-------------------------------
6,855,240 6,385,950
-------------------------------
MEDICAL DEVICES/DRUGS (13.8%)
- --------------------------------------------------------------------------------------------------------------
Biogen, Inc. (b) 58,800 3,811,025 3,226,650
Boston Scientific Corp. (b) 67,700 3,033,636 3,046,500
Eli Lilly & Co. 46,400 2,921,067 3,016,000
Genzyme Corp. (b) 40,000 2,411,803 2,010,000
Medtronic, Inc. 20,500 1,160,653 1,148,000
Merck & Co. 36,900 2,472,828 2,384,662
-------------------------------
15,811,012 14,831,812
-------------------------------
MISCELLANEOUS (1.4%)
- --------------------------------------------------------------------------------------------------------------
First Data Corp. 18,400 1,248,127 1,465,100
-------------------------------
RESTAURANTS (6.9%)
- --------------------------------------------------------------------------------------------------------------
Boston Chicken, Inc. (b) 82,300 2,840,785 2,674,750
Starbucks Corp. (b) 167,300 4,322,950 4,726,225
-------------------------------
7,163,735 7,400,975
-------------------------------
RETAIL (21.1%)
- --------------------------------------------------------------------------------------------------------------
AutoZone, Inc. (b) 106,500 3,601,496 3,700,875
Home Depot, Inc. 93,683 3,722,078 5,058,882
Kohl's Corp. (b) 32,400 973,642 1,186,650
Lowe's Companies, Inc. 98,700 3,233,227 3,565,537
OfficeMax, Inc. (b) 87,050 1,972,553 2,078,319
PetSmart, Inc. (b) 81,450 2,588,725 3,889,238
Staples, Inc. (b) 168,962 3,055,179 3,294,759
-------------------------------
19,146,900 22,774,260
-------------------------------
</TABLE>
See accompanying notes to schedule of investments.
<PAGE>
JUNDT GROWTH FUND, INC.
SCHEDULE OF INVESTMENTS (UNAUDITED)(CONTINUED) JUNE 30, 1996
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
COMMON STOCKS (CONCLUDED)
INDUSTRY DESCRIPTION AND ISSUE NUMBER OF SHARES COST MARKET VALUE (a)
- --------------------------------------------------------------------------------------------------------------
TELECOMMUNICATION INFRASTRUCTURE (10.1%)
- --------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Cascade Communications Corp. (b) 70,600 $ 3,008,110 $ 4,800,800
Tellabs Inc. (b) 47,200 1,832,807 3,156,500
U.S. Robotics Corp. (b) 34,800 2,391,008 2,975,400
-------------------------------
7,231,925 10,932,700
-------------------------------
WIRELESS/TELECOMMUNICATION SERVICES (10.0%)
- --------------------------------------------------------------------------------------------------------------
Airtouch Communications, Inc. (b) 101,300 2,865,270 2,861,725
LCI International, Inc. (b) 32,400 1,018,750 1,016,550
MFS Communications Company, Inc. (b) 55,600 1,822,023 2,091,950
WorldCom, Inc. (b) 86,500 2,821,962 4,789,938
-------------------------------
8,528,005 10,760,163
-------------------------------
TOTAL COMMON STOCKS (97.5%) 93,136,685 105,111,236
-------------------------------
</TABLE>
See accompanying notes to schedule of investments.
<PAGE>
JUNDT GROWTH FUND, INC.
SCHEDULE OF INVESTMENTS (UNAUDITED)(CONCLUDED) JUNE 30, 1996
- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
CONVERTIBLE CORPORATE BONDS
ISSUE PRINCIPAL AMOUNT COST MARKET VALUE (a)
- --------------------------------------------------------------------------------------------------------------
HEALTHCARE SERVICES (1.1%)
- --------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Phycor Inc., 4.50%, 2/15/03 $1,051,000 $ 1,065,364 $ 1,209,964
-------------------------------
TOTAL CONVERTIBLE CORPORATE BONDS (1.1%) 1,065,364 1,209,964
-------------------------------
SHORT-TERM SECURITIES
ISSUE
- --------------------------------------------------------------------------------------------------------------
REPURCHASE AGREEMENTS (1.7%)
- --------------------------------------------------------------------------------------------------------------
Repurchase agreement with Merrill Lynch
Government Securities, Inc.,
5.20% acquired on 6/28/96 and due 7/01/96
with accrued interest of $778 (collateralized by
$1,875,000 U.S. Treasury Bill 5.20%, 12/12/96,
value, $1,830,570) 1,795,000 1,795,000 1,795,000
MONEY MARKET FUNDS (0.0%)
- --------------------------------------------------------------------------------------------------------------
Investment in Prime Value Funds Treasury Fund 11,940 11,940 11,940
-------------------------------
TOTAL SHORT-TERM SECURITIES (1.7%) 1,806,940 1,806,940
-------------------------------
Total investments in securities (100.3%) $96,008,989(c) 108,128,140
Liabilities in excess of other assets (-0.3%) ----------- (326,722)
----------- ------------
NET ASSETS (100.0%) $107,801,418
------------
------------
</TABLE>
Notes to Schedule of Investments:
(a) Securities are valued by procedures described in note 2
to the financial statements.
(b) Presently non-income producing.
(c) Cost for Federal income tax purposes at June 30, 1996
was $96,008,989. The aggregate gross unrealized appreciation
of investments in securities based on this cost were:
---------------------------------------------------------------------
Gross unrealized appreciation $14,981,350
Gross unrealized depreciation (2,862,199)
-----------
Net unrealized appreciation $12,119,151
---------------------------------------------------------------------
<PAGE>
JUNDT GROWTH FUND, INC.
FINANCIAL STATEMENTS (UNAUDITED) JUNE 30, 1996
- --------------------------------------------------------------------------------
<TABLE>
STATEMENT OF ASSETS AND LIABILITIES
ASSETS
- --------------------------------------------------------------------------------------------------------------
<S> <C>
Investment in securities, at market value (note 2)
including repurchase agreements of $1,795,000
(identified cost: $96,008,989) $108,128,140
Receivable for securities sold 170,946
Dividends and accrued interest receivable 38,618
Receivable for capital shares sold 2,670
Prepaid expenses 29,968
------------
Total assets 108,370,342
------------
LIABILITIES
- --------------------------------------------------------------------------------------------------------------
Payable for capital shares redeemed 291,104
Accrued investment management fee (note 4) 88,069
Accrued administrative fee (note 4) 17,614
Accrued distribution fees (note 4) 136
Accrued expenses and other liabilities 172,001
------------
Total liabilities 568,924
------------
Net assets applicable to outstanding capital stock $107,801,418
------------
------------
NET ASSETS CONSIST OF
- --------------------------------------------------------------------------------------------------------------
Class A capital stock, $0.01 par value, 1 billion shares authorized $100,448,274
Class B capital stock, $0.01 par value, 1 billion shares authorized 21,295
Class C capital stock, $0.01 par value, 1 billion shares authorized 1,058
Class D capital stock, $0.01 par value, 1 billion shares authorized 119,651
Accumulated net investment loss (882,051)
Accumulated net realized loss on investments (4,025,960)
Unrealized appreciation on investments 12,119,151
------------
Total, representing net assets applicable to outstanding capital stock $107,801,418
------------
------------
NET ASSET VALUE
- --------------------------------------------------------------------------------------------------------------
Class A - Based on net assets of $107,639,692 and 8,096,355
shares outstanding $13.29
------
------
Class B - Based on net assets of $25,905 and 1,958 shares
outstanding $13.23
------
------
Class C - Based on net assets of $1,162 and 88 shares
outstanding $13.21
------
------
Class D - Based on net assets of $134,659 and 10,148 shares
outstanding $13.27
------
------
- --------------------------------------------------------------------------------------------------------------
</TABLE>
See accompanying notes to financial statements.
<PAGE>
JUNDT GROWTH FUND, INC.
FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED) JUNE 30, 1996
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
STATEMENT OF OPERATIONS SIX MONTHS ENDED
JUNE 30, 1996
- --------------------------------------------------------------------------------------------------------------
INCOME
- --------------------------------------------------------------------------------------------------------------
<S> <C>
Dividends $ 88,283
Interest 64,991
-----------
153,274
-----------
- --------------------------------------------------------------------------------------------------------------
EXPENSES
- --------------------------------------------------------------------------------------------------------------
(note 4) Investment management fee 546,514
Transfer agent fees 163,347
Administrative fee 109,303
Audit and legal fees 68,046
Directors' fees 41,148
Registration fees 36,545
Reports to shareholders 30,617
Custodian fees 17,971
Account maintenance fees 141
Distribution fees 90
Miscellaneous fees 21,603
-----------
Total expenses 1,035,325
-----------
- --------------------------------------------------------------------------------------------------------------
Investment loss-net (882,051)
-----------
- --------------------------------------------------------------------------------------------------------------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS
- --------------------------------------------------------------------------------------------------------------
Net realized loss on investments (note 3) (3,425,390)
Net change in unrealized appreciation on investments 14,638,631
-----------
Net gain on investments 11,213,241
-----------
- --------------------------------------------------------------------------------------------------------------
Net increase in net assets resulting from operations $10,331,190
-----------
-----------
- --------------------------------------------------------------------------------------------------------------
</TABLE>
See accompanying notes to financial statements.
<PAGE>
JUNDT GROWTH FUND, INC.
FINANCIAL STATEMENTS (UNAUDITED)(CONCLUDED) JUNE 30, 1996
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
STATEMENTS OF CHANGES IN NET ASSETS
SIX MONTHS ENDED YEAR ENDED
JUNE 30, 1996 (UNAUDITED) DECEMBER 31, 1995
- --------------------------------------------------------------------------------------------------------------
OPERATIONS
- --------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Investment loss-net $ (882,051) $ (1,775,720)
Net realized gain (loss) on investments (3,425,390) 87,197,971
Net change in unrealized appreciation or
depreciation on investments 14,638,631 (46,279,923)
--------------------------------
Net increase in net assets resulting from operations 10,331,190 39,142,328
--------------------------------
DISTRIBUTIONS TO SHAREHOLDERS
- --------------------------------------------------------------------------------------------------------------
Realized capital gains-net -- (83,541,012)
--------------------------------
CAPITAL SHARE TRANSACTIONS
- --------------------------------------------------------------------------------------------------------------
Net decrease from capital share transactions (note 5) (43,171,830) (38,275,968)
--------------------------------
NET ASSETS
- --------------------------------------------------------------------------------------------------------------
Total decrease in net assets (32,840,640) (82,674,652)
Net assets at beginning of period 140,642,058 223,316,710
--------------------------------
Net assets at end of period $107,801,418 $140,642,058
--------------------------------
--------------------------------
Accumulated net investment loss $ (882,051) --
--------------------------------
--------------------------------
- --------------------------------------------------------------------------------------------------------------
</TABLE>
See accompanying notes to financial statements.
<PAGE>
JUNDT GROWTH FUND, INC.
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) JUNE 30, 1996
- --------------------------------------------------------------------------------
1. ORGANIZATION
The Jundt Growth Fund, Inc. (the "Fund") is registered under the Investment
Company Act of 1940 (as amended) as a diversified, open-end management
investment company. The Fund was incorporated under the laws of the State of
Minnesota on May 20, 1991 and originally commenced operations on September 3,
1991 as a closed-end investment company. The Fund converted to an open-end
investment company immediately following the close of business on the New York
Stock Exchange on December 28, 1995 (the "Open-End Conversion"). Since the Open-
End Conversion, the Fund has offered its shares of common stock in four classes
(Class A, Class B, Class C and Class D). Shares of Class A and Class D are sold
with a front-end sales charge, and sales of greater than $1,000,000 are not
subject to a front-end sales charge but may be subject to a contingent deferred
sales charge when redeemed. Shares of Class B and Class C 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 B, Class C and Class D 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 solely 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.
Effective upon the Open-End Conversion, each issued and outstanding Fund share
was converted to a Class A share of the open-end Fund. The Fund's investment
objective is 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.
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The significant accounting policies followed by the Fund are as follows:
INVESTMENT IN SECURITIES
Investments in securities traded on U.S. securities exchanges or included in a
national market system 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. 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 Fund intends to comply with the requirements of the Internal Revenue Code
applicable to regulated investment companies and also intends to distribute
all of its investment company taxable income to shareholders. Therefore, no
income tax provision is required. In addition, on a calendar year basis, the
Fund will make sufficient distributions of its 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
<PAGE>
JUNDT GROWTH FUND, INC.
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)(CONTINUED) JUNE 30, 1996
- --------------------------------------------------------------------------------
dividend distributions, the period in which amounts are distributed may differ
from the year the income or realized gains (losses) were recorded by the Fund.
REPURCHASE AGREEMENTS
The Fund 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 Fund takes
possession of the underlying securities, marks to market such securities daily
and, if necessary, receives additional securities to ensure that the contract is
fully collateralized.
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 the
Fund.
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 of assets and liabilities and disclosure of
contingent assets and liabilities at the date of the financial statements and
the reported amounts of income and expenses during the reporting period. Actual
results could differ from those estimates.
3. INVESTMENT SECURITY TRANSACTIONS
Purchases of securities and proceeds from sales, other than temporary
investments in short-term securities, for the period ended June 30, 1996 were
$51,423,871 and $161,769,143, respectively.
4. INVESTMENT ADVISORY AND ADMINISTRATION AGREEMENTS AND TRANSACTIONS WITH
AFFILIATES
The Fund has entered into an investment advisory agreement with the Adviser. The
Adviser is responsible for the management of the Fund's portfolio and provides
the necessary personnel, facilities, equipment and certain other services
necessary to the operations of the Fund.
For such services, the Fund pays a monthly investment management fee calculated
at the annualized rate of 1% of the Fund's average daily net assets. The most
restrictive state-imposed annual expense limitation requires that the Adviser
reimburse the Fund to the extent the Fund's expenses (excluding interest, taxes,
distribution fees, brokerage fees and commissions, and extraordinary items)
exceed 2.5% of the Fund's first $30 million of average daily net assets, 2.0% of
the next $70 million of average daily net assets and 1.5% of the average daily
net assets in excess thereof. The Adviser's obligation to reimburse the Fund is
limited to the amount of the investment management fee.
The Fund has entered into an administration agreement with Princeton
Administrators, L.P. (the "Administrator") which provides the Administrator with
a monthly administrative fee in an amount equal to an annualized rate of 0.20%
of the Fund's average daily net assets not exceeding $600,000,000 and 0.175% of
the Fund's average daily net assets in excess of $600,000,000, subject to an
annual minimum fee of $125,000. For its fee, the Administrator provides certain
administrative, accounting, clerical and record keeping services for the Fund.
The Fund has entered into a distribution agreement with U.S. Growth Investments,
Inc. (the "Distributor"), an affiliate of the Adviser. The Distributor serves as
the principal underwriter of the Fund's shares. Pursuant to the Distribution
Plans adopted by the Fund in accordance with Rule 12b-1 under the Investment
Company Act of 1940, the 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 the shares as follows:
ACCOUNT DISTRIBUTION
MAINTENANCE FEE FEE
- --------------------------------------------------------------------------------
Class B 0.25% 0.75%
Class C 0.25% 0.75%
Class D 0.25% -
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
<PAGE>
JUNDT GROWTH FUND, INC.
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)(CONTINUED) JUNE 30, 1996
- --------------------------------------------------------------------------------
In addition to the investment management fee, the administrative fee and account
maintenance and distribution fees, the 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 $27,744 for the period ended June 30, 1996 were paid to a law firm
of which the secretary of the Fund is a partner. Certain officers and/or
directors of the Fund are officers and/or directors of the Adviser and/or the
Distributor.
5. CAPITAL SHARE TRANSACTIONS
Net decrease in net assets from capital share transactions was $43,171,830 and
$38,275,968 for the period ended June 30, 1996 and for the year ended December
31, 1995, respectively.
Transactions in capital shares for each class were as follows:
CLASS A:
FOR THE SIX MONTHS DOLLAR
ENDED JUNE 30, 1996 SHARES AMOUNT
- --------------------------------------------------------------------------------
Shares sold 423,542 $ 5,099,284
Shares redeemed (4,093,040) (48,410,118)
------------------------------------------------
Net decrease (3,669,498) $(43,310,834)
------------------------------------------------
FOR THE YEAR ENDED DOLLAR
DECEMBER 31, 1995 SHARES AMOUNT
- --------------------------------------------------------------------------------
Shares sold 376 $ 4,492
Shares issued to
shareholders in
reinvestment of
dividends 2,311,519 27,275,924
------------------------------------------------
Total issued 2,311,895 27,280,416
Shares redeemed (5,485,890) (65,556,384)
------------------------------------------------
Net decrease (3,173,995) $(38,275,968)
------------------------------------------------
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
CLASS B:
FOR THE SIX MONTHS DOLLAR
ENDED JUNE 30, 1996 SHARES AMOUNT
- --------------------------------------------------------------------------------
Shares sold 1,875 $20,295
Shares redeemed - -
------------------------------------------------
Net increase 1,875 $20,295
------------------------------------------------
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
CLASS C:
FOR THE SIX MONTHS DOLLAR
ENDED JUNE 30, 1996 SHARES AMOUNT
- --------------------------------------------------------------------------------
Shares sold 5 $58
Shares redeemed - -
------------------------------------------------
Net increase 5 $58
------------------------------------------------
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
CLASS D:
FOR THE SIX MONTHS DOLLAR
ENDED JUNE 30, 1996 SHARES AMOUNT
- --------------------------------------------------------------------------------
Shares sold 10,065 $118,651
Shares redeemed - -
------------------------------------------------
Net increase 10,065 $118,651
------------------------------------------------
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
For the year ended December 31, 1995, approximately 83 shares ($1,000) of each
Class B, Class C and Class D were sold to the principal shareholder of the
Adviser in connection with the Open-End Conversion and are included in sales of
Class A for that period.
<PAGE>
JUNDTH GROWTH FUND, INC.
NOTES TO FINANCIAL STATEMENTS (CONCLUDED) JUNE 30, 1996
- --------------------------------------------------------------------------------
6. FINANCIAL HIGHLIGHTS
Per share data for a share of capital stock outstanding throughout each period
and selected supplemental and ratio information for each period indicated are as
follows:
<TABLE>
<CAPTION>
SIX MONTHS ENDED 6/30/96 (UNAUDITED)
PER SHARE DATA CLASS A CLASS B CLASS C CLASS D
- -----------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Net asset value, beginning of period $11.95 $11.95 $11.95 $11.95
---------------------------------------------------------
Operations:
Investment income (loss)-net (0.11) (0.15) (0.16) (0.08)
Net realized and unrealized gain (loss) on investments 1.45 1.43 1.42 1.40
---------------------------------------------------------
Total from operations 1.34 1.28 1.26 1.32
Distributions to shareholders:
From investment income-net - - - -
From realized capital gains-net - - - -
Tax return of capital - - - -
---------------------------------------------------------
Net asset value, end of period $13.29 $13.23 $13.21 $13.27
---------------------------------------------------------
---------------------------------------------------------
Total investment return (1) 11.21% 10.71% 10.54% 11.05%
Net assets at end of period (000s omitted) $107,640 $26 $1 $135
Ratio of expenses to average net assets 1.89%(2) 2.89%(2) 2.89%(2) 2.14%(2)
Ratio of expenses, excluding distribution fees,
to average net assets 1.89%(2) 1.89%(2) 1.89%(2) 1.89%(2)
Ratio of net investment income (loss) to average net assets (1.61)%(2) (2.61)%(2) (2.62)%(2) (1.83)%(2)
Portfolio turnover rate (excluding short-term securities) 42% 42% 42% 42%
Average commission per share $0.06 $0.06 $0.06 $0.06
- -----------------------------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
YEAR PERIOD YEAR YEAR PERIOD
ENDED FROM 7/01/94 ENDED ENDED FROM 9/3/91
PER SHARE DATA 12/31/95 TO 12/31/94 6/30/94 6/30/93 TO 6/30/92
- ---------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period $14.95 $13.53 $15.10 $13.78 $14.07
-------------------------------------------------------------------
Operations:
Investment income (loss)-net (0.12) (0.07) (0.11) (0.05) 0.13
Net realized and unrealized gain (loss) on investments 2.71 1.83 (0.57) 1.38 (0.30)
-------------------------------------------------------------------
Total from operations 2.59 1.76 (0.68) 1.33 (0.17)
Distributions to shareholders:
From investment income-net - - - (0.01) (0.12)
From realized capital gains-net (5.59) - (0.52) - -
Tax return of capital - (0.34) (0.37) - -
-------------------------------------------------------------------
Net asset value, end of period $11.95 $14.95 $13.53 $15.10 $13.78
-------------------------------------------------------------------
-------------------------------------------------------------------
Total investment return (1) 17.81% 13.06% (4.53)% 9.64% (1.30)%
Net assets at end of period (000s omitted) $140,642 $223,317 $202,192 $473,768 $465,055
Ratio of expenses to average net assets 1.60% 1.58%(2) 1.55% 1.40% 1.37%(2)
Ratio of expenses, excluding distribution fees,
to average net assets 1.60% 1.58%(2) 1.55% 1.40% 1.37%(2)
Ratio of net investment income (loss) to average net assets (0.72)% (0.98)%(2) (0.63)% (0.36)% 1.05%(2)
Portfolio turnover rate (excluding short-term securities) 155% 19% 70% 66% 20%
Average commission per share N/A N/A N/A N/A N/A
- ----------------------------------------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------------------------------
</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 reflect performance of the Fund as a closed-end fund (assuming
dividend reinvestment pursuant to the Fund's Dividend Reinvestment Plan as
then in effect); as an open-end fund, the 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.
<PAGE>
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 950
Minneapolis, MN 55416
ADMINISTRATOR
Princeton Administrators, L.P.
P.O. Box 9095
Princeton, NJ08543-9095
TRANSFER AGENT
National Financial Data Services
P.O. Box 419168
Kansas City, MO 64141-6168
1-800-370-0612
CUSTODIAN
Norwest Bank Minnesota, N.A.
Sixth &Marquette
Minneapolis, MN 55479
INDEPENDENT AUDITORS
KPMGPeat Marwick LLP
4200 Norwest Center
Minneapolis, MN 55402
LEGAL COUNSEL
Faegre &Benson LLP
2200 Norwest Center
Minneapolis, MN 55402
THIS REPORT IS NOT AUTHORIZED FOR USE IN CONNECTION WITH AN OFFER TO BUY SHARES
OF THE FUND UNLESS ACCOMPANIED OR PRECEDED BY THE FUND'S CURRENT PROSPECTUS.
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.
GENERAL INFORMATION REGARDING THE FUND'S PORTFOLIO, UPDATED MONTHLY, IS
AVAILABLE BY CALLING PRINCETON ADMINISTRATORS, L.P., AT 1-800-543-6217 OR
1-609-282-4600.
THE ACCOMPANYING FINANCIAL STATEMENTS AS OF JUNE 30, 1996 WERE NOT AUDITED AND,
ACCORDINGLY, NO OPINION IS EXPRESSED ON THEM.
