<PAGE>
[LOGO]
JUNDT
GROWTH FUND
JUNDT
U.S. EMERGING
GROWTH FUND
JUNDT
OPPORTUNITY FUND
JUNDT
TWENTY-FIVE FUND
SEMI-ANNUAL REPORT
JUNE 30, 1998
SEARCHING TODAY FOR THE
GENIUSES OF TOMORROW-SM-
<PAGE>
LETTER TO SHAREHOLDERS
DEAR SHAREHOLDER,
The first half of 1998 was a successful period for the Jundt Funds. They have
performed well both on a relative and absolute basis through the second
quarter of 1998. Each fund, year-to-date, has outperformed its benchmark.
The 50 largest capitalization companies in the S&P 500, which account for more
than half of the weighting of the index, gained more than 25% in the first half
of 1998. The remaining 450 companies advanced approximately 10%. This disparate
performance phenomena was reflected in the results of the individual funds.
However, for the first time in a few years, some of the large multinational
companies are missing their earnings targets. Traditionally, this type of
economic environment has resulted in increased investor interest in growth
stocks.
JUNDT GROWTH FUND
The Jundt Growth Fund Class I shares finished up 5.87%* for the second quarter
and 20.03%* for the first half of 1998. It not only outperformed the Lipper
Growth Fund Index by 4.46% but also outperformed the S&P 500 Index by 2.28% for
the six months ended June 30, 1998.
"Bigger" continues to be "better" as the largest multinationals dramatically
outperformed the rest of the market. With earnings pressures now beginning to
show for these large multinationals, we are witnessing a modest shift of
investor interest to greater top line revenue growth companies. The type of
company stocks held by the Jundt Growth Fund (including stocks within the
telecommunications, drugs, software technology and retailing sectors) showed
very strong performance and helped the Fund outperform its benchmark. The
composite revenue growth rate of the portfolio exceeds that of the S&P 500 Index
by a factor of four.
JUNDT U.S. EMERGING GROWTH FUND
The Jundt U.S. Emerging Growth Fund, which invests in companies with at least
25% annual top line revenue growth, outperformed the Lipper Small Cap Growth
Fund Index by 5.56% for the second quarter. While the Lipper Small Cap Growth
Fund Index was down -3.87% for the quarter, the Jundt U.S. Emerging Growth
Fund's Class A shares were up 1.69%* for the three months and 10.47%* for the
first half of 1998. According to Lipper Analytical Services, Inc., the Jundt
U.S. Emerging Growth Fund ranked in the top 2% of small cap funds with an
average annual total return from its inception (January 2, 1996) through June
30, 1998 of 35.06%* for Class A shares.**
The small cap market continues to be negatively affected by two factors--the
Asian problem, which has adversely impacted many technology companies, and the
continued effect of indexing, which favors large companies over small companies.
Nonetheless, telecommunications and retailing stocks helped us outperform the
Russell 2000 Growth Index by 7.43% for second quarter and 5.01% for year-to-date
on Class A* shares. With the valuations of emerging companies becoming even more
attractive than large companies, the Jundt U.S. Emerging Growth Fund is well
positioned for any renewal of interest in small company stocks.
1
<PAGE>
LETTER TO SHAREHOLDERS (CONCLUDED)
JUNDT OPPORTUNITY FUND
The Jundt Opportunity Fund, a non-diversified capital appreciation fund,
experienced both strong second quarter and year-to-date performance. While the
Lipper Capital Appreciation Fund Index was up 1.69% for the quarter and 14.68%
for the six-month period ending June 30, 1998, the Jundt Opportunity Fund's
Class A shares were up 6.64%* and 17.86%* for the same periods. Lipper
Analytical Services, Inc. ranked the Jundt Opportunity Fund in the top 5% of
capital appreciation funds*** with an average annual total return from its
inception (December 26, 1996) through June 30, 1998 of 38.89%* for Class A
shares.
The Fund's recent performance can be attributed to price appreciation in
internet stocks as well as in software technology, retailing and drug stocks.
JUNDT TWENTY-FIVE FUND
The Jundt Twenty-Five Fund, the newest member of the Jundt family of funds, had
a strong six months. The Fund, which invests in 20-30 companies, is also a
non-diversified capital appreciation fund. For the second quarter, the Fund's
Class A shares were up 9.55%,* and for the six months ending June 30, 1998, the
Fund's Class A shares were up 30.80%.*
The Jundt Twenty-Five Fund is a blended fund in that the companies in the
portfolio typically are selected from the universe of stocks held by the Jundt
U.S. Emerging Growth Fund and the Jundt Growth Fund. The Fund's 1998 performance
can be attributed to strength in retailing, telecommunications and drug stocks.
The Jundt Funds had an excellent first half of 1998 with all four funds
exceeding their individual benchmarks. Thank you for placing your trust in Jundt
Associates. We value your business and look forward to a continued relationship.
Sincerely,
/s/ James R. Jundt
James R. Jundt
Chairman
* Does not reflect the deduction of applicable sales charges.
** Based on average annual total return (without consideration of applicable
sales charges) of 362 "small cap" mutual funds (treating separate classes
of any funds as separate funds) for the period from 1/2/96 to 6/30/98, as
published by Lipper Analytical Services, Inc.
*** Based on average annual total return (without consideration of applicable
sales charges) of 211 "capital appreciation" mutual funds (treating
separate classes of any funds as separate funds) for the period from
12/26/96 to 6/30/98, as published by Lipper Analytical Services, Inc.
2
<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 multitrillion-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-capitalization 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 JUNE 30, 1998
(AS A PERCENTAGE OF NET ASSETS)
- --------------------------------------------------------------------------------
[CHART]
<TABLE>
<S> <C>
Insurance 2.7%
Healthcare Services 1.2%
Restaurants 3.7%
Computer Services/Software 8.8%
Internet Technology 6.5%
Client Server Software 6.5%
Energy 7.9%
Computer Hardware 2.9%
Database Software 4.3%
Telecommunication Infrastructure 9.6%
Retail 13.0%
Telecommunication Services 8.1%
Medical Devices/Drugs 16.5%
</TABLE>
3
<PAGE>
PERFORMANCE DATA: GROWTH FUND (UNAUDITED)
TOTAL RETURN BASED ON A $10,000 INVESTMENT
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
JUNDT GROWTH FUND(1) JUNDT GROWTH FUND(1)
(Class I shares with (Class I shares LIPPER GROWTH RUSSELL 1000
sales charge) without sales charge)* FUND INDEX(3) INDEX(2)
-------------------- ---------------------- -------------- ------------
<S> <C> <C> <C> <C>
9/3/91 $ 9,475 $10,000 $10,000 $10,000
12/31/91 10,492 11,073 10,801 10,840
12/31/92 10,567 11,152 11,625 11,808
12/31/93 10,573 11,159 13,017 13,010
12/31/94 11,068 11,681 12,813 13,060
12/31/95 13,039 13,761 16,997 17,993
12/31/96 15,024 15,857 19,968 22,032
12/31/97 16,653 17,576 25,575 29,270
6/30/98 19,989 21,097 29,558 34,013
</TABLE>
AVERAGE ANNUAL TOTAL RETURNS (FOR PERIODS ENDED JUNE 30, 1998)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
- ----------------------------------------------------------------------------------------
SINCE SINCE
1-YEAR 5-YEAR INCEPTION(4) INCEPTION(5)
- ----------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
JUNDT GROWTH CLASS A
Without sales charge* 26.97% -- -- 19.05%
With sales charge (a) 20.30 -- -- 16.51
- ----------------------------------------------------------------------------------------
JUNDT GROWTH CLASS B
Without sales charge* 25.92 -- -- 18.19
With sales charge (b) 21.92 -- -- 17.25
- ----------------------------------------------------------------------------------------
JUNDT GROWTH CLASS C
Without sales charge* 26.38 -- -- 18.30
With sales charge (c) 25.38 -- -- 18.30
- ----------------------------------------------------------------------------------------
JUNDT GROWTH CLASS I
Without sales charge* 27.28 14.28% 11.55% --
With sales charge (a) 20.60 13.05 10.68 --
- ----------------------------------------------------------------------------------------
RUSSELL 1000 INDEX 30.15 22.38 19.64 28.95
- ----------------------------------------------------------------------------------------
LIPPER GROWTH FUND INDEX 28.27 19.47 17.19 24.78
- ----------------------------------------------------------------------------------------
</TABLE>
* Applicable to investors who purchased shares at net asset value (without
sales charges), including Class I shareholders, at the time of 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. Prior to April
22, 1997, Class I shares were referred to as Class A shares, and the current
Class A shares were referred to as Class D shares.
(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 date 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.
4
<PAGE>
JUNDT GROWTH FUND
SCHEDULE OF INVESTMENTS (UNAUDITED) JUNE 30, 1998
<TABLE>
<CAPTION>
COMMON STOCKS
Industry Description and Issue Number of Shares Cost Market Value (a)
- ----------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
CLIENT SERVER SOFTWARE (6.5%)
- ----------------------------------------------------------------------------------------------------
HBO & Company 113,000 $ 1,659,652 $ 3,983,250
Peoplesoft Inc. (b) 34,000 1,027,156 1,598,000
--------------------------------
2,686,808 5,581,250
--------------------------------
COMPUTER HARDWARE (2.9%)
- ----------------------------------------------------------------------------------------------------
Dell Computer Corporation (b) 13,400 804,000 1,243,688
Intel Corporation 16,300 1,328,450 1,208,238
--------------------------------
2,132,450 2,451,926
--------------------------------
COMPUTER SERVICES/SOFTWARE (8.8%)
- ----------------------------------------------------------------------------------------------------
Computer Associates International, Inc. 22,050 1,000,391 1,225,153
Microsoft Corporation (b) 37,400 1,890,644 4,053,225
Sterling Commerce, Inc. (b) 46,200 1,680,473 2,240,700
--------------------------------
4,571,508 7,519,078
--------------------------------
DATABASE SOFTWARE (4.3%)
- ----------------------------------------------------------------------------------------------------
J.D. Edwards & Company (b) 86,300 2,902,266 3,705,506
--------------------------------
ENERGY (6.0%)
- ----------------------------------------------------------------------------------------------------
BJ Services Company (b) 49,100 1,729,192 1,426,969
Cooper Cameron Corporation (b) 14,300 942,415 729,300
Santa Fe International Corporation 50,300 1,715,073 1,521,575
Schlumberger Limited 21,000 1,168,523 1,434,563
--------------------------------
5,555,203 5,112,407
--------------------------------
HEALTHCARE SERVICES (1.2%)
- ----------------------------------------------------------------------------------------------------
Omnicare, Inc. 26,500 804,895 1,010,312
--------------------------------
INSURANCE (2.7%)
- ----------------------------------------------------------------------------------------------------
The Progressive Corporation 16,200 1,756,946 2,284,200
--------------------------------
INTERNET TECHNOLOGY (6.5%)
- -----------------------------------------------------------------------------------------------------
America Online, Inc. (b) 23,600 1,848,895 2,501,600
Intuit Inc. (b) 30,400 1,760,712 1,862,000
N2k Inc. (b) 66,000 1,983,263 1,295,250
--------------------------------
5,592,870 5,658,850
--------------------------------
See accompanying notes to schedule of investments. 5
<PAGE>
JUNDT GROWTH FUND
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED) JUNE 30, 1998
<CAPTION>
COMMON STOCKS (CONCLUDED)
Industry Description and Issue Number of Shares Cost Market Value (a)
- ----------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
MEDICAL DEVICES/DRUGS (16.5%)
- ----------------------------------------------------------------------------------------------------
Alza Corporation (b) 17,600 $ 858,972 $ 761,200
BioChem Pharma Inc. (b) 37,400 815,382 991,100
Boston Scientific Corporation (b) 36,000 2,527,454 2,578,500
Centocor, Inc. (b) 28,100 1,224,417 1,018,625
CliniChem Development Inc. (b) 935 5,493 5,376
Pfizer Inc. 37,500 2,655,511 4,075,781
Warner-Lambert Company 67,800 3,133,919 4,703,625
--------------------------------
11,221,148 14,134,207
--------------------------------
RESTAURANTS (3.7%)
- -----------------------------------------------------------------------------------------------------
Starbucks Corp. (b) 59,700 1,754,640 3,190,219
--------------------------------
RETAIL (13.0%)
- ----------------------------------------------------------------------------------------------------
AutoZone, Inc. (b) 51,900 1,522,090 1,657,556
Bed, Bath & Beyond, Inc. (b) 17,200 592,351 891,175
Dollar General Corporation 22,100 879,445 874,331
Kohl's Corporation (b) 15,900 873,428 824,812
Staples, Inc. (b) 102,993 1,288,366 2,980,360
The Home Depot, Inc. 47,324 1,493,401 3,930,850
--------------------------------
6,649,081 11,159,084
--------------------------------
TELECOMMUNICATION INFRASTRUCTURE (9.6%)
- ----------------------------------------------------------------------------------------------------
ADC Telecommunications, Inc. (b) 29,100 710,874 1,063,059
Cisco Systems, Inc. (b) 21,600 1,149,534 1,988,550
Lucent Technologies Inc. 18,300 587,293 1,522,331
Northern Telecom Ltd. 24,700 1,220,396 1,401,725
Tellabs, Inc. (b) 31,300 944, 417 2,241,863
--------------------------------
4,612,514 8,217,528
--------------------------------
TELECOMMUNICATION SERVICES (8.1%)
- ----------------------------------------------------------------------------------------------------
AirTouch Communications, Inc. (b) 35,600 1,315,709 2,080,375
Intermedia Communication Inc. (b) 19,800 823,067 830,363
WorldCom, Inc. (b) 83,600 1,585,592 4,049,375
--------------------------------
3,724,368 6,960,113
--------------------------------
TOTAL COMMON STOCKS (89.8%) 53,964,697 76,984,680
--------------------------------
--------------------------------
See accompanying notes to schedule of investments. 6
<PAGE>
JUNDT GROWTH FUND
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONCLUDED) JUNE 30, 1998
<CAPTION>
CONVERTIBLE CORPORATE BONDS
Principal Amount/
Industry Description and Issue Number of Shares Cost Market Value (a)
- ----------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
ENERGY (1.9%)
- ----------------------------------------------------------------------------------------------------
Lowes Corp., 3.125%, 9/15/07 $ 1,825,000 $ 1,843,430 $ 1,665,312
--------------------------------
TOTAL CONVERTIBLE CORPORATE BONDS (1.9%) 1,843,430 1,665,312
--------------------------------
--------------------------------
SHORT-TERM SECURITIES
Issue
- ----------------------------------------------------------------------------------------------------
REPURCHASE AGREEMENT (5.4%)
- ----------------------------------------------------------------------------------------------------
Repurchase agreement with Merrill Lynch
Government Securities, Inc., 5.60%
acquired on 6/30/98 and due 7/01/98
with proceeds of $4,608,717
(collateralized by $4,600,000 U.S.
Treasury Note, 5.875%, due 2/28/99,
value including accrued interest,
$4,793,094) 4,608,000 4,608,000 4,608,000
--------------------------------
MONEY MARKET FUND (0.0%)
- ----------------------------------------------------------------------------------------------------
Norwest Treasury Fund, 5.00% (c) 446 446 446
--------------------------------
TOTAL SHORT-TERM SECURITIES (5.4%) 4,608,446 4,608,446
--------------------------------
--------------------------------
Total investments in securities (97.1%) $60,416,573 (d) 83,258,438
Other assets in excess of liabilities (2.9%) ------------ 2,495,298
------------ -------------
NET ASSETS (100.0%) $85,753,736
-------------
-------------
</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 June
30, 1998.
(d) Cost for federal income tax purposes at June 30, 1998, was $60,416,573.
The aggregate gross unrealized appreciation and depreciation on
investments in securities based on this cost were:
<TABLE>
-------------------------------------------------------------------------
<S> <C>
Gross unrealized appreciation $24,894,455
Gross unrealized depreciation (2,052,590)
-----------
Net unrealized appreciation $22,841,865
-------------------------------------------------------------------------
</TABLE>
7
<PAGE>
JUNDT ASSOCIATES' APPROACH TO INVESTING: U.S. EMERGING GROWTH FUND
THE U.S. EMERGING GROWTH FUND CONCENTRATES ON SMALLER-CAPITALIZATION
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 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 JUNE 30, 1998
(AS A PERCENTAGE OF NET ASSETS)
- --------------------------------------------------------------------------------
<TABLE>
<S> <C>
Insurance 1.2%
Medical Devices/Drugs 4.6%
Energy 5.3%
Computer Services/Software 22.2%
Restaurants 5.5%
Retail 5.9%
Healthcare Services 7.3%
Telecommunication Infrastructure 17.8%
Miscellaneous 7.9%
Internet Technology 10.0%
Telecommunication Services 3.3%
</TABLE>
8
<PAGE>
PERFORMANCE DATA: U.S. EMERGING GROWTH FUND (UNAUDITED)
TOTAL RETURN BASED ON A $10,000 INVESTMENT
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
JUNDT U.S. JUNDT U.S.
EMERGING GROWTH EMERGING GROWTH
FUND(1) FUND(1)
(Class A shares (Class A shares LIPPER SMALL Cap
without sales with sales RUSSELL 2000 GROWTH FUND
charge)* charge) GROWTH INDEX(2) INDEX(3)
--------------- ---------------- --------------- ----------------
<S> <C> <C> <C> <C>
1/2/96 $10,000 $9,475 $10,000 $10,000
12/31/96 14,340 13,588 11,114 11,451
12/31/97 19,150 18,145 12,553 13,158
6/30/98 21,155 20,045 13,237 14,003
</TABLE>
AVERAGE ANNUAL TOTAL RETURNS (FOR PERIODS ENDED JUNE 30, 1998)
- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------
SINCE
1-YEAR INCEPTION(4)
- ------------------------------------------------------------------------------------
<S> <C> <C>
JUNDT U.S EMERGING GROWTH CLASS A
Without sales charge* 30.59% 35.06%
With sales charge (a) 23.74 32.17
- ------------------------------------------------------------------------------------
JUNDT U.S EMERGING GROWTH CLASS B
Without sales charge* 29.66 34.28
With sales charge (b) 25.66 33.50
- ------------------------------------------------------------------------------------
JUNDT U.S EMERGING GROWTH CLASS C
Without sales charge* 29.71 34.27
With sales charge (c) 28.71 34.27
- ------------------------------------------------------------------------------------
JUNDT U.S EMERGING GROWTH CLASS I 30.95 35.62
- ------------------------------------------------------------------------------------
RUSSELL 2000 GROWTH INDEX 13.19 11.91
- ------------------------------------------------------------------------------------
LIPPER SMALL CAP GROWTH FUND INDEX 15.52 14.41
- ------------------------------------------------------------------------------------
</TABLE>
* 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 (reflecting the
deduction of the maximum deferred sales charge of 4%), Class C shares and
Class I shares (which are not subject to any sales charges) over the same
time period was $20,551, $20,848 and $21,375, 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. Prior to April 22, 1997, Class I shares were referred to as Class
A shares, and the current Class A shares were referred to as Class D shares.
(2) 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.
(3) 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.
(4) Inception dates are January 2, 1996 for the Fund's shares, 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.
9
<PAGE>
JUNDT U.S. EMERGING GROWTH FUND
SCHEDULE OF INVESTMENTS (UNAUDITED) JUNE 30, 1998
<TABLE>
<CAPTION>
COMMON STOCKS
Industry Description and Issue Number of Shares Cost Market value (a)
- --------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
COMPUTER SERVICES/SOFTWARE (22.2%)
- --------------------------------------------------------------------------------------------------------------
Aspect Development, Inc (b) 7,200 $ 379,925 $ 544,500
CBT Group Public Limited Company (b)(c) 10,200 393,681 545,700
Citrix Systems, Inc. (b) 4,300 210,419 294,013
Documentum, Inc. (b) 8,400 340,802 403,200
DSET Corporation (b) 20,000 320,000 302,500
Envoy Corporation (b) 4,500 190,707 213,188
Great Plains Software, Inc. (b) 12,500 200,000 423,438
HNC Software Inc. (b) 5,500 192,500 224,469
Legato Systems, Inc. (b) 8,000 200,263 312,000
Mobius Management Systems, Inc. (b) 15,800 254,981 237,000
Sapient Corporation (b) 5,400 216,675 284,850
Technology Solutions Company (b) 8,800 248,363 278,850
Veritas Software Corporation (b) 11,700 373,471 484,086
Visio Corporation (b) 8,100 330,925 386,774
--------------------------------
3,852,712 4,934,568
--------------------------------
ENERGY (5.3%)
- --------------------------------------------------------------------------------------------------------------
BJ Services Company (b) 11,700 458,078 340,031
Dril-Quip, Inc. (b) 15,000 360,000 393,750
National-Oilwell, Inc. (b) 16,100 563,081 431,681
--------------------------------
1,381,159 1,165,462
--------------------------------
HEALTHCARE SERVICES (7.3%)
- --------------------------------------------------------------------------------------------------------------
PAREXEL International Corporation (b) 12,100 440,138 440,138
Superior Consultant Holding Corporation (b) 17,400 613,400 750,375
Snyder Communications, Inc. (b) 9,600 390,770 422,400
--------------------------------
1,444,308 1,612,913
--------------------------------
INSURANCE (1.2%)
- --------------------------------------------------------------------------------------------------------------
Inspire Insurance Solutions, Inc. (b) 8,000 173,250 266,000
--------------------------------
See accompanying notes to schedule of investments. 10
<PAGE>
JUNDT U.S. EMERGING GROWTH FUND
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED) JUNE 30, 1998
<CAPTION>
COMMON STOCKS (CONTINUED)
Industry Description and Issue Number of Shares Cost Market Value (a)
- --------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
INTERNET TECHNOLOGY (10.0%)
- --------------------------------------------------------------------------------------------------------------
Doubleclick Inc. (b) 4,600 $ 134,550 $ 228,563
Netgravity Inc. (b) 10,000 90,000 131,250
Preview Travel, Inc. (b) 28,600 847,828 983,125
N2k Inc. (b) 33,700 850,817 661,363
Think New Ideas Inc. (b) 8,100 218,194 211,613
--------------------------------
2,141,389 2,215,914
--------------------------------
MEDICAL DEVICES/DRUGS (4.6%)
- --------------------------------------------------------------------------------------------------------------
BioChem Pharma Inc. (b) 20,000 430,000 530,000
CliniChem Development Inc. (b) 500 2,938 2,875
Sabratek Corporation (b) 21,400 567,723 486,850
--------------------------------
1,000,661 1,019,725
--------------------------------
RESTAURANTS (5.5%)
- --------------------------------------------------------------------------------------------------------------
Famous Dave's of America, Inc. (b) 40,000 237,500 200,000
Starbucks Corp. (b) 19,200 693,826 1,026,000
--------------------------------
931,326 1,226,000
--------------------------------
RETAIL (5.9%)
- --------------------------------------------------------------------------------------------------------------
Hibbett Sporting Goods, Inc. (b) 7,000 204,750 280,000
Linens 'n Things, Inc. (b) 7,000 217,648 213,938
Pacific Sunwear of California, Inc. (b) 7,350 210,041 257,250
Party City Corporation (b) 19,050 362,300 559,594
--------------------------------
994,739 1,310,782
--------------------------------
TELECOMMUNICATION INFRASTRUCTURE (17.8%)
- --------------------------------------------------------------------------------------------------------------
Advanced Fibre Communications, Inc. (b) 15,900 463,106 636,994
At Home Corporation (b) 4,800 62,406 227,100
Concord Communications, Inc. (b) 17,000 443,188 434,562
Genesys Telecommunications Laboratories, Inc. (b) 6,400 189,245 211,600
Geotel Communications Corporation (b) 28,600 552,792 1,165,450
Saville Systems PLC (b)(c) 12,600 476,798 631,577
Uniphase Corporation (b) 10,400 409,071 652,925
--------------------------------
2,596,606 3,960,208
--------------------------------
See accompanying notes to schedule of investments. 11
<PAGE>
JUNDT U.S. EMERGING GROWTH FUND
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED) JUNE 30, 1998
<CAPTION>
COMMON STOCKS (CONCLUDED)
Industry Description and Issue Number of Shares Cost Market Value (a)
- --------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
TELECOMMUNICATION SERVICES (3.3%)
- --------------------------------------------------------------------------------------------------------------
International Telecommunications Data Systems, Inc. (b) 7,200 $ 193,469 $ 208,800
Pacific Gateway Exchange, Inc. (b) 13,300 517,799 532,831
--------------------------------
711,268 741,631
--------------------------------
MISCELLANEOUS (7.9%)
- --------------------------------------------------------------------------------------------------------------
ABR Information Services, Inc. (b) 13,300 364,387 315,874
AHL Services, Inc. (b) 6,400 210,324 252,000
Concord EFS, Inc. (b) 24,600 480,121 642,674
Sunrise Assisted Living, Inc. (b) 16,100 585,700 553,437
--------------------------------
1,640,532 1,763,985
--------------------------------
TOTAL COMMON STOCKS (91.0%) 16,867,950 20,217,188
--------------------------------
--------------------------------
See accompanying notes to schedule of investments. 12
<PAGE>
JUNDT U.S. EMERGING GROWTH FUND
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONCLUDED) JUNE 30, 1998
<CAPTION>
SHORT-TERM SECURITIES
Principal Amount/
Issue Number of Shares Cost Market Value (a)
- --------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
REPURCHASE AGREEMENT (8.3%)
- --------------------------------------------------------------------------------------------------------------
Repurchase agreement with Merrill Lynch
Government Securities, Inc., 5.60% acquired
on 6/30/98 and due 7/01/98 with proceeds of
$1,837,286 (collateralized by $1,835,000
U.S. Treasury Note, 5.875%, due 2/28/99,
value including accrued interest, $1,912,028) $1,837,000 $ 1,837,000 $ 1,837,000
--------------------------------
1,837,000 1,837,000
--------------------------------
MONEY MARKET FUND (0.0%)
- --------------------------------------------------------------------------------------------------------------
Norwest Treasury Fund, 5.00% (d) 347 347 347
--------------------------------
TOTAL SHORT-TERM SECURITIES (8.3%) 1,837,347 1,837,347
--------------------------------
--------------------------------
Total investments in securities (99.3%) $ 18,705,297(e) 22,054,535
------------
Other assets in excess of liabilities (0.7%) ------------ 170,142
------------
NET ASSETS (100.0%) $ 22,224,677
------------
------------
</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) American Depository Receipt.
(d) Rate changes to reflect market conditions. Rate disclosed is as of
June 30, 1998.
(e) Cost for federal income tax purposes at June 30, 1998 was $18,705,297.
The aggregate gross unrealized appreciation and depreciation on
investments in securities based on this cost were:
<TABLE>
<S> <C>
----------------------------------------------------------------------
Gross unrealized appreciation $4,041,746
Gross unrealized depreciation (692,508)
----------
Net unrealized appreciation $3,349,238
----------------------------------------------------------------------
</TABLE>
13
<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 JUNE 30, 1998
(AS A PERCENTAGE OF NET ASSETS)
- ------------------------------------------------------------------------
[CHART]
<TABLE>
<S> <C>
Restaurants 2.7%
Computer Services/
Software 12.1%
Miscellaneous 4.9%
Retail 5.0%
Client Server Software 5.6%
Energy 6.9%
Computer Hardware 2.0%
Database Software 5.4%
Telecommunication
Infrastructure 9.6%
Telecommunication
Services 2.9%
Medical Devices/Drugs 24.9%
Internet
Technology 18.6%
</TABLE>
14
<PAGE>
PERFORMANCE DATA: OPPORTUNITY FUND (UNAUDITED)
TOTAL RETURN BASED ON A $10,000 INVESTMENT
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
JUNDT OPPORTUNITY FUND(1) JUNDT OPPORTUNITY FUND(1)
(Class A shares with LIPPER CAPITAL (Class A shares RUSSELL 3000
sales charge) APPRECIATION FUND INDEX(3) without sales charge)* INDEX(2)
------------------------- --------------------------- ------------------------- ------------
<S> <C> <C> <C> <C>
12/26/96 $ 9,475 $10,000 $10,000 $10,000
12/31/96 9,352 10,010 9,870 9,885
6/30/97 13,200 11,998 13,932 13,027
12/31/97 14,589 13,531 15,397 14,727
6/30/98 15,558 13,773 16,420 14,995
</TABLE>
AVERAGE ANNUAL TOTAL RETURNS (for periods ended June 30, 1998)
- ----------------------------------------------------------------
<TABLE>
<CAPTION>
SINCE
1-YEAR INCEPTION(4)
- ----------------------------------------------------------------
<S> <C> <C>
JUNDT OPPORTUNITY CLASS A
Without sales charge* 44.93% 38.89%
With sales charge (a) 37.32 34.02
- ----------------------------------------------------------------
JUNDT OPPORTUNITY CLASS B
Without sales charge* 44.02 37.99
With sales charge (b) 40.02 35.73
- ----------------------------------------------------------------
JUNDT OPPORTUNITY CLASS C
Without sales charge* 43.90 37.92
With sales charge (c) 42.90 37.92
- ----------------------------------------------------------------
JUNDT OPPORTUNITY CLASS I 45.36 39.33
- ----------------------------------------------------------------
RUSSELL 3000 INDEX 28.81 30.78
- ----------------------------------------------------------------
LIPPER CAPITAL APPRECIATION
FUND INDEX 24.90 23.56
- ----------------------------------------------------------------
</TABLE>
* 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 (reflecting the
deduction of the maximum deferred sales charge of 4%), Class C shares and
Class I shares (which are not subject to any sales charges) over the same
time period was $15,859, $16,247 and $16,499, 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. Prior to April 22, 1997, Class I shares were referred to as Class
A shares, and the current Class A shares were referred to as Class D shares.
(2) The Russell 3000 Index measures the performance of the 3,000 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 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 index
data.
PAST PERFORMANCE OF THE FUND SHOULD NOT BE CONSIDERED PREDICTIVE OF FUTURE
FUND PERFORMANCE. SELLING SECURITIES SHORT, EMPLOYING LEVERAGE AND INVESTING
IN OPTIONS AND FUTURES CONTRACTS INVOLVE ADDITIONAL INVESTMENT RISK.
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.
15
<PAGE>
JUNDT OPPORTUNITY FUND
SCHEDULE OF INVESTMENTS (UNAUDITED) JUNE 30, 1998
<TABLE>
<CAPTION>
COMMON STOCKS
Industry Description and Issue Number of Shares Cost Market Value (a)
- --------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
CLIENT SERVER SOFTWARE (5.6%)
- --------------------------------------------------------------------------------------------------------------
HBO & Company 8,000 $ 170,250 $ 282,000
Peoplesoft Inc. (b) 12,800 577,600 601,600
--------------------------------
747,850 883,600
--------------------------------
COMPUTER HARDWARE (2.0%)
- --------------------------------------------------------------------------------------------------------------
Dell Computer Corporation (b) 3,400 286,450 315,563
--------------------------------
COMPUTER SERVICES/SOFTWARE (12.1%)
- --------------------------------------------------------------------------------------------------------------
Compuware Corporation (b) 12,400 483,025 633,950
Microsoft Corporation (b) 6,300 577,237 682,762
Veritas Software Corporation (b) 14,700 585,930 608,213
--------------------------------
1,646,192 1,924,925
--------------------------------
DATABASE SOFTWARE (5.4%)
- --------------------------------------------------------------------------------------------------------------
J.D. Edwards & Company (b) 19,800 642,925 850,163
--------------------------------
ENERGY (3.4%)
- --------------------------------------------------------------------------------------------------------------
Cooper Cameron Corporation (b) 4,000 231,856 204,000
IRI International Corporation (b) 32,000 458,019 344,000
--------------------------------
689,875 548,000
--------------------------------
INTERNET TECHNOLOGY (18.6%)
- --------------------------------------------------------------------------------------------------------------
America Online, Inc. (b) 6,200 570,885 657,200
Excite, Inc. (b) 5,100 359,630 476,850
Intuit Inc. (b) 11,000 537,625 673,750
N2k Inc. (b) 22,000 537,937 431,750
Preview Travel, Inc. (b) 20,700 653,451 711,562
--------------------------------
2,659,528 2,951,112
--------------------------------
MEDICAL DEVICES/DRUGS (24.9%)
- --------------------------------------------------------------------------------------------------------------
Eli Lilly and Company 12,400 780,335 819,175
Pfizer Inc. 10,400 1,166,206 1,130,350
Sabratek Corporation (b) 24,100 650,613 548,275
Warner-Lambert Company 12,000 528,070 832,500
Visix Inc. (b) 10,400 598,040 618,800
--------------------------------
3,723,264 3,949,100
--------------------------------
See accompanying notes to schedule of investments. 16
<PAGE>
JUNDT OPPORTUNITY FUND
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED) JUNE 30, 1998
<CAPTION>
COMMON STOCKS (CONCLUDED)
Industry Description and Issue Number of Shares Cost Market Value (a)
- --------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
RESTAURANTS (2.7%)
- --------------------------------------------------------------------------------------------------------------
Starbucks Corp. (b) 8,100 $ 344,688 $ 432,844
--------------------------------
RETAIL (5.0%)
- --------------------------------------------------------------------------------------------------------------
Best Buy Inc. (b) 9,200 307,232 332,350
The Home Depot, Inc. 5,500 317,611 456,844
--------------------------------
624,843 789,194
--------------------------------
TELECOMMUNICATION INFRASTRUCTURE (9.6%)
- --------------------------------------------------------------------------------------------------------------
Ascend Communications, Inc. (b) 10,500 376,615 520,406
At Home Corporation (b) 3,200 116,800 151,400
Geotel Communications Corporation (b) 20,900 626,163 851,675
--------------------------------
1,119,578 1,523,481
--------------------------------
TELECOMMUNICATION SERVICES (2.9%)
- --------------------------------------------------------------------------------------------------------------
Pacific Gateway Exchange, Inc. (b) 11,600 514,675 464,725
--------------------------------
MISCELLANEOUS (4.9%)
- --------------------------------------------------------------------------------------------------------------
CorporateFamily Solution, Inc. (b) 13,000 339,405 325,000
Amdocs Limited (b) 20,000 280,000 302,500
Maxim Integrated Products, Inc. (b) 4,800 144,000 152,100
--------------------------------
763,405 779,600
--------------------------------
TOTAL COMMON STOCKS (97.1%) 13,763,273 15,412,307
--------------------------------
--------------------------------
See accompanying notes to schedule of investments. 17
<PAGE>
JUNDT OPPORTUNITY FUND
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONCLUDED) JUNE 30, 1998
<CAPTION>
CONVERTIBLE CORPORATE BONDS
Principal Amount/
Industry Description and Issue Number of Shares Cost Market Value (a)
- --------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
ENERGY (3.5%)
- --------------------------------------------------------------------------------------------------------------
Lowes Corp., 3.125%, 9/15/07 $ 606,000 $ 626,876 $ 552,974
--------------------------------
TOTAL CONVERTIBLE CORPORATE BONDS (3.5%) 626,876 552,974
--------------------------------
--------------------------------
SHORT-TERM SECURITIES (0.0%)
Issue
- --------------------------------------------------------------------------------------------------------------
MONEY MARKET FUND (0.0%)
- --------------------------------------------------------------------------------------------------------------
Norwest Treasury Fund, 5.00% (c) 599 599 599
--------------------------------
TOTAL SHORT-TERM SECURITIES (0.0%) 599 599
--------------------------------
Total investments in securities (100.6%) $ 14,390,748(d) 15,965,880
------------
------------
Liabilities in excess of other assets (-0.6%) (95,888)
------------
NET ASSETS (100.0%) $ 15,869,992
------------
------------
</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
June 30, 1998.
(d) Cost for federal income tax purposes at June 30, 1998 was $14,390,748.
The aggregate gross unrealized appreciation and depreciation on
investments in securities based on this cost were:
<TABLE>
<S> <C>
----------------------------------------------------------------------
Gross unrealized appreciation $2,099,644
Gross unrealized depreciation (524,512)
----------
Net unrealized appreciation $1,575,132
----------------------------------------------------------------------
</TABLE>
18
<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 core portfolio of approximately 20 to 30 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 in this 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 JUNE 30, 1998
(AS A PERCENTAGE OF NET ASSETS)
- --------------------------------------------------------------------------------
[CHART]
<TABLE>
<S> <C>
Restaurants 4.1%
Retail 5.2%
Computer Services/Software 12.5%
Internet Technology 15.0%
Client Server Software 3.6%
Computer Hardware 3.5%
Database Software 5.4%
Telecommunication Services 7.7%
Medical Devices/Drugs 21.5%
Telecommunication Infrastructure 13.2%
</TABLE>
19
<PAGE>
PERFORMANCE DATA: TWENTY-FIVE FUND (UNAUDITED)
TOTAL RETURN BASED ON A $10,000 INVESTMENT
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------
JUNDT TWENTY-FIVE FUND(1) JUNDT TWENTY-FIVE FUND(1)
(Class A shares without (Class A shares with RUSSELL 1000 LIPPER CAPITAL APPRECIATION
sales charge)* sales charge) GROWTH INDEX(2) FUND INDEX(3)
- ------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
12/31/97 $10,000 $9,475 $10,000 $10,000
- ------------------------------------------------------------------------------------------------------------------------------
6/30/98 13,080 12,393 12,038 11,469
- ------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
AGGREGATE ANNUAL TOTAL RETURNS (for periods ended June 30, 1998)
- ------------------------------------------------------------
SINCE
INCEPTION(4)
-----------
- ------------------------------------------------------------
<S> <C>
JUNDT TWENTY-FIVE CLASS A
Without sales charge* 30.80%
With sales charge (a) 23.93
- ------------------------------------------------------------
JUNDT TWENTY-FIVE CLASS B
Without sales charge* 30.40
With sales charge (b) 26.40
- ------------------------------------------------------------
JUNDT TWENTY-FIVE CLASS C
Without sales charge* 30.40
With sales charge (c) 29.40
- ------------------------------------------------------------
JUNDT TWENTY-FIVE CLASS I 31.00
- ------------------------------------------------------------
RUSSELL 1000 GROWTH INDEX 20.38
- ------------------------------------------------------------
LIPPER CAPITAL APPRECIATION
FUND INDEX 14.69
- ------------------------------------------------------------
</TABLE>
*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 (reflecting the deduction of the maximum deferred
sales charge of 4%), Class C shares and Class I shares (which are not subject to
any sales charges) over the same time period was $12,640, $12,940 and $13,100,
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 both the Fund's shares and index
data.
PAST PERFORMANCE OF THE FUND SHOULD NOT BE CONSIDERED PREDICTIVE OF FUTURE FUND
PERFORMANCE. NON-DIVERSIFIED MUTUAL FUNDS MAY EXPERIENCE GREATER PRICE
VOLATILITY THAN DIVERSIFIED MUTUAL FUNDS. 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.
20
<PAGE>
JUNDT TWENTY-FIVE FUND
SCHEDULE OF INVESTMENTS (UNAUDITED) JUNE 30, 1998
<TABLE>
<CAPTION>
COMMON STOCKS
Industry Description and Issue Number of Shares Cost Market Value (a)
- -----------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
CLIENT SERVER SOFTWARE (3.6%)
- -----------------------------------------------------------------------------------------------------
HBO & Company 3,200 $ 81,850 $ 112,800
----------------------------------
COMPUTER HARDWARE (3.5%)
- -----------------------------------------------------------------------------------------------------
Dell Computer Corporation (b) 1,200 106,388 111,375
----------------------------------
COMPUTER SERVICES/SOFTWARE (12.5%)
- -----------------------------------------------------------------------------------------------------
Aspect Development, Inc. (b) 900 52,650 68,062
Compuware Corporation (b) 2,300 93,481 117,587
Sapient Corporation (b) 1,800 81,413 94,950
Veritas Software Corporation (b) 2,700 107,620 111,713
----------------------------------
335,164 392,312
----------------------------------
DATABASE SOFTWARE (5.4%)
- -----------------------------------------------------------------------------------------------------
J.D. Edwards & Company (b) 4,000 129,750 171,750
----------------------------------
INTERNET TECHNOLOGY (15.0%)
- -----------------------------------------------------------------------------------------------------
America Online, Inc. (b) 1,200 110,561 127,200
Excite, Inc. (b) 1,000 70,516 93,500
Intuit Inc. (b) 1,900 117,444 116,375
Preview Travel, Inc. (b) 3,900 113,839 134,062
----------------------------------
412,360 471,137
----------------------------------
MEDICAL DEVICES/DRUGS (21.5%)
- -----------------------------------------------------------------------------------------------------
Boston Scientific Corporation (b) 1,000 70,776 71,625
Eli Lilly and Company 1,800 118,233 118,913
Pfizer Inc. 2,000 221,566 217,375
Sabratek Corporation (b) 4,500 142,588 102,375
Warner-Lambert Company 2,400 127,221 166,500
----------------------------------
680,384 676,788
----------------------------------
See accompanying notes to schedule of investments.
21
<PAGE>
JUNDT TWENTY-FIVE FUND
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONTINUED) JUNE 30, 1998
<CAPTION>
COMMON STOCKS (CONCLUDED)
Industry Description and Issue Number of Shares Cost Market Value (a)
- -----------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
RESTAURANTS (4.1%)
- -----------------------------------------------------------------------------------------------------
Starbucks Corp. (b) 2,400 $ 100,069 $ 128,250
----------------------------------
RETAIL (5.2%)
- -----------------------------------------------------------------------------------------------------
Restoration Hardware, Inc. (b) 2,500 47,500 62,813
The Home Depot, Inc. 1,200 77,509 99,675
----------------------------------
125,009 162,488
----------------------------------
TELECOMMUNICATION INFRASTRUCTURE (13.2%)
- -----------------------------------------------------------------------------------------------------
Advanced Fibre Communications, Inc. (b) 2,100 82,162 84,131
Cisco Systems Inc. (b) 1,600 134,050 147,300
Geotel Communications Corporation (b) 3,600 106,650 146,700
Tellabs, Inc. (b) 500 30,250 35,813
----------------------------------
353,112 413,944
----------------------------------
TELECOMMUNICATION SERVICES (7.7%)
- -----------------------------------------------------------------------------------------------------
AirTouch Communications, Inc. (b) 1,600 78,465 93,500
WorldCom, Inc. (b) 3,100 129,331 150,156
----------------------------------
207,796 243,656
----------------------------------
TOTAL COMMON STOCKS (91.7%) 2,531,882 2,884,500
----------------------------------
----------------------------------
See accompanying notes to schedule of investments. 22
<PAGE>
JUNDT TWENTY-FIVE FUND
SCHEDULE OF INVESTMENTS (UNAUDITED) (CONCLUDED) JUNE 30, 1998
<CAPTION>
SHORT-TERM SECURITIES (8.6%)
Principal Amount/
Issue Number of Shares Cost Market Value (a)
- ----------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
MONEY MARKET FUND (8.6%)
- ----------------------------------------------------------------------------------------------------
Norwest Treasury Fund, 5.00% (c) 135,000 $ 135,000 $ 135,000
Norwest U.S. Government Fund, 5.30% (c) 135,000 135,000 135,000
----------------------------------
270,000 270,000
----------------------------------
TOTAL SHORT-TERM SECURITIES (8.6%) 270,000 270,000
----------------------------------
----------------------------------
Total investments in securities (100.3%) $ 2,801,882(d) 3,154,500
------------
------------
Liabilities in excess of other assets (-0.3%) (10,413)
------------
NET ASSETS (100.0%) $ 3,144,087
------------
------------
</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 June 30,
1998.
(d) Cost for federal income tax purposes at June 30,1998 was $2,801,882. The
aggregate gross unrealized appreciation and depreciation on investments in
securities based on this cost were:
-------------------------------------------
Gross unrealized appreciation $398,091
Gross unrealized depreciation (45,473)
--------
Net unrealized appreciation $352,618
-------------------------------------------
23
<PAGE>
FINANCIAL STATEMENTS (UNAUDITED) JUNE 30, 1998
<TABLE>
<CAPTION>
STATEMENTS OF ASSETS AND LIABILITIES
Jundt Jundt U.S. Jundt Jundt
Growth Emerging Opportunity Twenty-Five
Fund Growth Fund Fund Fund
- -------------------------------------------------------------------------------------------------------------------------
ASSETS
- -------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Investment in securities, at market value
(note 2) including repurchase agreements
of $4,608,000, $1,837,000, $0 and $0,
respectively (identified cost: $60,416,573,
$18,705,297, $14,390,748 and $2,801,882,
respectively) $83,258,438 $22,054,535 $15,965,880 $3,154,500
Cash -- -- 2,291 33,910
Receivable for securities sold 5,800,654 515,804 561,925 46,511
Receivable for capital shares sold 2,500 82,597 31,434 13,083
Dividends and accrued interest receivable 27,695 286 5,718 177
Receivable from investment adviser -- 25,141 22,448 15,171
Deferred organization costs -- 43,489 29,672 65,807
Prepaid expenses and other assets 4,617 18,463 21,895 --
------------------------------------------------------------------------
Total assets 89,093,904 22,740,315 16,641,263 3,329,159
------------------------------------------------------------------------
LIABILITIES
- -------------------------------------------------------------------------------------------------------------------------
Loans payable (note 5) -- -- 674,000 --
Payable for capital shares redeemed 250,433 202,839 23,589 57
Payable for securities purchased 2,830,616 197,200 -- 117,444
Accrued investment advisory fee 67,699 17,097 15,705 3,002
Accrued administrative fee 13,540 3,419 3,288 3,288
Accrued distribution fee 475 6,419 3,832 333
Interest payable (note 5) -- -- 1,928 --
Accrued expenses and other liabilities 177,405 88,664 48,929 60,948
------------------------------------------------------------------------
Total liabilities 3,340,168 515,638 771,271 185,072
------------------------------------------------------------------------
Net assets applicable to outstanding
capital stock $85,753,736 $22,224,677 $15,869,992 $3,144,087
------------------------------------------------------------------------
------------------------------------------------------------------------
</TABLE>
- --------------------------------------------------------------------------------
See accompanying notes to financial statements. 24
<PAGE>
FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED) JUNE 30, 1998
<TABLE>
<CAPTION>
STATEMENTS OF ASSETS AND LIABILITIES (CONCLUDED)
Jundt Jundt U.S. Jundt Jundt
Growth Emerging Opportunity Twenty-Five
Fund Growth Fund Fund Fund
- -------------------------------------------------------------------------------------------------------------------------
NET ASSETS CONSIST OF
- -------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Capital stock (note 1) $ 53,279,796 $ 18,440,613 $ 13,723,866 $ 2,605,135
Net investment loss (600,653) (176,363) (134,341) (8,610)
Accumulated net realized gain
on investments 10,232,728 611,189 705,335 194,944
Unrealized appreciation on investments 22,841,865 3,349,238 1,575,132 352,618
--------------------------------------------------------------------------
Total, representing net assets
applicable to outstanding
capital stock $ 85,753,736 $ 22,224,677 $ 15,869,992 $ 3,144,087
--------------------------------------------------------------------------
--------------------------------------------------------------------------
Net assets applicable to
outstanding Class A shares $ 662,805 $ 4,277,142 $ 3,406,030 $ 757,105
--------------------------------------------------------------------------
--------------------------------------------------------------------------
Net assets applicable to
outstanding Class B shares $ 347,506 $ 4,940,397 $ 3,527,838 $ 54,235
--------------------------------------------------------------------------
--------------------------------------------------------------------------
Net assets applicable to
outstanding Class C shares $ 95,280 $ 2,404,904 $ 663,534 $ 201,968
--------------------------------------------------------------------------
--------------------------------------------------------------------------
Net assets applicable to
outstanding Class I shares $ 84,648,145 $ 10,602,234 $ 8,272,590 $ 2,130,779
--------------------------------------------------------------------------
--------------------------------------------------------------------------
SHARES OUTSTANDING AND NET ASSET VALUE PER SHARE
- -------------------------------------------------------------------------------------------------------------------------
Class A shares of capital stock
outstanding: 38,945, 295,745,
261,975 and 57,862, respectively $ 17.02 $ 14.46 $ 13.00 $ 13.08
--------------------------------------------------------------------------
--------------------------------------------------------------------------
Class B shares of capital stock
outstanding: 20,806, 347,911,
274,490 and 4,160, respectively $ 16.70 $ 14.20 $ 12.85 $ 13.04
--------------------------------------------------------------------------
--------------------------------------------------------------------------
Class C shares of capital stock
outstanding: 5,694, 169,456,
51,683 and 15,493, respectively $ 16.73 $ 14.19 $ 12.84 $ 13.04
--------------------------------------------------------------------------
--------------------------------------------------------------------------
Class I shares of capital stock
outstanding: 4,938,978, 723,193,
632,932 and 162,610, respectively $ 17.14 $ 14.66 $ 13.07 $ 13.10
--------------------------------------------------------------------------
--------------------------------------------------------------------------
</TABLE>
See accompanying notes to financial statements. 25
<PAGE>
FINANCIAL STATEMENTS (UNAUDITED)(CONTINUED) JUNE 30, 1997
<TABLE>
<CAPTION>
STATEMENTS OF OPERATIONS
Jundt U.S.
Jundt Emerging Growth Jundt Jundt
For the six months ended 6/30/98 Growth Fund Fund Opportunity Fund Twenty-Five Fund
- -------------------------------------------------------------------------------------------------------------------------
INCOME
- -------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Interest $ 97,734 $ 54,988 $ 40,536 $ 9,700
Dividends 111,031 2,938 14,623 2,113
--------------------------------------------------------------------------
208,765 57,926 55,159 11,813
--------------------------------------------------------------------------
EXPENSES (note 4)
- -------------------------------------------------------------------------------------------------------------------------
Investment management fee 408,322 100,101 84,853 12,644
Transfer agent fee 128,449 65,811 50,680 30,938
Administrative fee 81,665 20,020 19,836 19,836
Legal fees 38,773 15,115 8,771 6,433
Audit fees 24,334 7,970 6,984 1,703
Reports to shareholders 23,575 4,302 2,692 900
Directors' fees 36,282 7,177 4,469 3,477
Registration fee 31,188 27,826 25,667 30,037
Custodian fee 15,667 12,084 9,466 6,956
Amortization of deferred organization costs -- 8,601 4,212 31,369
Account maintenance fee:
Class A 768 4,185 2,913 366
Class B 330 5,536 3,550 25
Class C 111 2,242 699 126
Distribution fee:
Class B 990 16,609 10,650 77
Class C 334 6,726 2,096 376
Other 18,630 13,166 9,575 5,695
--------------------------------------------------------------------------
Total expenses before interest
expense and reimbursement 809,418 317,471 247,113 150,958
Interest expense (note 5) -- -- 8,004 --
Reimbursement of expenses -- (127,017) (103,373) (130,535)
--------------------------------------------------------------------------
Expenses after interest expense and
reimbursement 809,418 190,454 151,744 20,423
--------------------------------------------------------------------------
Net investment loss (600,653) (132,528) (96,585) (8,610)
--------------------------------------------------------------------------
NET REALIZED AND UNREALIZED GAIN
ON INVESTMENTS
- -------------------------------------------------------------------------------------------------------------------------
Net realized gain on investments
and futures transactions (note 3) 11,212,720 332,728 737,717 194,944
Net realized gain on short sale
transactions (note 3) -- 63,932 --
--------------------------------------------------------------------------
Net realized gain on investments,
futures transactions and short
sale transactions 11,212,720 332,728 801,649 194,944
Net change in unrealized appreciation
(depreciation) on investments 4,400,554 1,891,036 1,624,658 352,618
--------------------------------------------------------------------------
Net gain on investments 15,613,274 2,223,764 2,426,307 547,562
--------------------------------------------------------------------------
Net increase in net assets resulting
from operations $ 15,012,621 $ 2,091,236 $ 2,329,722 $ 538,952
--------------------------------------------------------------------------
--------------------------------------------------------------------------
</TABLE>
- --------------------------------------------------------------------------------
See accompanying notes to financial statements. 26
<PAGE>
JUNDT GROWTH FUND, INC.
FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED) JUNE 30, 1998
<TABLE>
<CAPTION>
STATEMENT OF CASH FLOWS
For the six months ended 6/30/98 Jundt Opportunity Fund
- ------------------------------------------------------------------------------------------------------------------------
INCREASE (DECREASE) IN CASH
- ------------------------------------------------------------------------------------------------------------------------
<S> <C>
Cash flows used for operating activities
Dividends and interest received $ 52,476
Operating expenses paid (223,161)
Reimbursement from investment adviser 71,376
Interest expense paid (6,310)
Purchases of short-term investments, net 567,934
Purchases of long-term investments (29,135,166)
Proceeds from sales of long-term investments 22,255,500
Proceeds from short sale transactions 2,644,510
Purchases to close short sale transactions (2,580,578)
Net cash used for futures transactions (132,919)
-------------
Net cash used for operating activities (6,486,338)
-------------
Cash flows provided by financing activities
Net capital share transactions 5,813,091
Proceeds from borrowings 6,348,100
Repayment of borrowings (5,674,100)
-------------
Net cash provided by financing activities 6,487,091
-------------
Net increase in cash 753
Cash at beginning of period 1,538
-------------
Cash at end of period $ 2,291
-------------
-------------
RECONCILIATION OF NET INCREASE IN NET ASSETS FROM OPERATIONS
TO NET CASH USED FOR OPERATING ACTIVITIES
- ------------------------------------------------------------------------------------------------------------------------
Net increase in net assets resulting from operations $ 2,329,722
-------------
Increase in investments (5,566,925)
Net realized gain on investments (737,717)
Net realized gain on short sale transactions (63,932)
Net realized gain from futures transactions (132,919)
Net change in unrealized appreciation on investments (1,624,658)
Increase in dividends and accrued interest receivable (2,683)
Increase in receivable for investments sold (561,925)
Increase in reimbursement from investment adviser (22,448)
Decrease in other assets 4,621
Decrease in payable for investments purchased (118,950)
Increase in interest payable 1,694
Increase in accrued expenses and other liabilities 9,782
-------------
Total adjustments (8,816,060)
-------------
Net cash used for operating activities $ (6,486,338)
-------------
-------------
</TABLE>
- --------------------------------------------------------------------------------
See accompanying notes to financial statements. 27
<PAGE>
FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED) JUNE 30, 1998
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
Jundt Growth Fund Jundt U.S. Emerging Growth Fund
--------------------------------------------------------------------------
For the six For the six
months ended months ended
6/30/1998 Year ended 6/30/1998 Year ended
(unaudited) 12/31/97 (unaudited) 12/31/97
- ------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
OPERATIONS
- ------------------------------------------------------------------------------------------------------------------------------
Investment loss-net $ (600,653) $(1,110,023) $ (132,528) $ (150,706)
Net realized gain on investments, futures
transactions and short sale transactions 11,212,720 8,023,453 332,728 4,679,699
Net change in unrealized appreciation
(depreciation) on investments 4,400,554 2,470,376 1,891,036 100,400
--------------------------------------------------------------------------
Net increase in net assets resulting
from operations 15,012,621 9,383,806 2,091,236 4,629,393
--------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS
- ------------------------------------------------------------------------------------------------------------------------------
Realized capital gains-net -- (4,654,856) -- (3,890,930)
--------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS
- ------------------------------------------------------------------------------------------------------------------------------
Net proceeds from shares sold:
Class A shares 41,988 370,587 2,251,848 958,365
Class B shares 123,198 206,044 2,212,191 1,851,712
Class C shares 18,650 75,777 995,636 552,081
Class I shares 260,820 624,608 19,366 610,384
Distributions reinvested:
Class A shares -- 26,802 -- 287,832
Class B shares -- 9,539 -- 740,993
Class C shares -- 1,574 -- 309,113
Class I shares -- 3,135,404 -- 2,200,213
Cost of shares redeemed:
Class A shares (97,137) (133,803) (522,217) (402,649)
Class B shares (11,977) (60,621) (1,521,897) (373,611)
Class C shares (19,085) -- (289,374) (1,301,365)
Class I shares (11,412,249) (23,984,987) (2,207,025) (751,255)
Net increase (decrease) --------------------------------------------------------------------------
in net assets from capital
share transactions (11,095,792) (19,729,076) 938,528 4,681,813
--------------------------------------------------------------------------
NET ASSETS
- ------------------------------------------------------------------------------------------------------------------------------
Total increase (decrease) in net assets 3,916,829 (15,000,126) 3,029,764 5,420,276
Net assets at beginning of period 81,836,907 96,837,033 19,194,913 13,774,637
--------------------------------------------------------------------------
Net assets at end of period $85,753,736 $81,836,907 $22,224,677 $19,194,913
--------------------------------------------------------------------------
--------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------
</TABLE>
*Commencement of operations.
See accompanying notes to financial statements.
28
<PAGE>
FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED) JUNE 30, 1998
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
Jundt Opportunity Fund Jundt Twenty-Five Fund
--------------------------------------------------------------------------
For the six For the six
months ended months ended
6/30/1998 Year ended 6/30/1998
(unaudited) 12/31/97 (unaudited) 12/31/97*
- ------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
OPERATIONS
- ------------------------------------------------------------------------------------------------------------------------------
Investment loss-net $ (96,585) $ (83,606) $ (8,610) $ --
Net realized gain on investments, futures
transactions and short sale transactions 801,649 1,498,062 194,944 --
Net change in unrealized appreciation
(depreciation) on investments 1,624,658 (44,463) 352,618 --
--------------------------------------------------------------------------
Net increase in net assets resulting
from operations 2,329,722 1,369,993 538,952 --
--------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS
- ------------------------------------------------------------------------------------------------------------------------------
Realized capital gains-net -- (1,581,765) -- --
--------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS
- ------------------------------------------------------------------------------------------------------------------------------
Net proceeds from shares sold:
Class A shares 2,267,371 877,406 686,978 10,000
Class B shares 925,576 2,322,887 41,164 10,000
Class C shares 263,503 402,101 165,048 10,000
Class I shares 3,129,012 3,572,825 741,285 970,000
Distributions reinvested:
Class A shares -- 200,988 -- --
Class B shares -- 422,132 -- --
Class C shares -- 81,151 -- --
Class I shares -- 717,064 -- --
Cost of shares redeemed:
Class A shares (348,926) (34,953) (8,798) --
Class B shares (167,973) (55,497) (2,731) --
Class C shares (120,262) (25,337) (42) --
Class I shares (190,119) (887,042) (17,809) --
Net increase (decrease) --------------------------------------------------------------------------
in net assets from capital
share transactions 5,758,182 7,593,725 1,605,095 1,000,000
--------------------------------------------------------------------------
NET ASSETS
- ------------------------------------------------------------------------------------------------------------------------------
Total increase (decrease) in net assets 8,087,904 7,381,953 2,144,047 1,000,000
Net assets at beginning of period 7,782,088 400,135 1,000,040 40
--------------------------------------------------------------------------
Net assets at end of period $15,869,992 $7,782,088 $3,144,087 $1,000,040
--------------------------------------------------------------------------
--------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------
</TABLE>
*Commencement of operations.
See accompanying notes to financial statements.
29
<PAGE>
FINANCIAL STATEMENTS (UNAUDITED) (CONCLUDED) JUNE 30, 1998
STATEMENTS OF CHANGES IN NET ASSETS (CONCLUDED)
<TABLE>
<CAPTION>
Jundt Growth Fund Jundt U.S. Emerging Growth Fund
-------------------------------------------------------------------------
For the six For the six
months ended months ended
6/30/1998 Year ended 6/30/1998 Year Ended
(unaudited) 12/31/97 (unaudited) 12/31/97
- ------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
CAPITAL SHARE TRANSACTIONS
- ------------------------------------------------------------------------------------------------------------------------------
Shares sold:
Class A shares 2,689 25,010 171,424 63,886
Class B shares 8,029 14,104 176,037 120,487
Class C shares 1,346 5,410 73,236 37,559
Class I shares 16,011 43,234 1,355 43,886
Shares issued for dividends reinvested:
Class A shares -- 1,997 -- 23,212
Class B shares -- 721 -- 60,638
Class C shares -- 120 -- 25,337
Class I shares -- 232,252 -- 175,316
Shares redeemed:
Class A shares (6,304) (9,331) (37,456) (28,016)
Class B shares (759) (4,036) (121,714) (25,701)
Class C shares (1,350) -- (21,695) (87,924)
Class I shares (745,218) (1,655,398) (166,582) (52,145)
-------------------------------------------------------------------------
Net increase (decrease) in shares outstanding (725,556) (1,345,917) 74,605 356,535
-------------------------------------------------------------------------
-------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------
</TABLE>
*Commencement of operations.
See accompanying notes to financial statements.
30
<PAGE>
FINANCIAL STATEMENTS (UNAUDITED) (CONCLUDED) JUNE 30, 1998
STATEMENTS OF CHANGES IN NET ASSETS (CONCLUDED)
<TABLE>
<CAPTION>
Jundt Opportunity Fund Jundt Twenty-Five Fund
--------------------------------------------------------------------------
For the six For the six
months ended months ended
6/30/1998 Year ended 6/30/1998
(unaudited) 12/31/97 (unaudited) 12/31/97*
- ------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
CAPITAL SHARE TRANSACTIONS
- ------------------------------------------------------------------------------------------------------------------------------
Shares sold:
Class A shares 192,721 70,697 57,630 1,001
Class B shares 78,723 173,963 3,383 1,001
Class C shares 22,739 33,112 14,495 1,001
Class I shares 289,600 326,742 67,103 97,001
Shares issued for dividends reinvested:
Class A shares -- 18,926 -- --
Class B shares -- 40,088 -- --
Class C shares -- 7,707 -- --
Class I shares -- 67,330 -- --
Shares redeemed:
Class A shares (29,053) (2,625) (769) --
Class B shares (14,267) (4,124) (224) --
Class C shares (10,163) (1,820) (3) --
Class I shares (15,864) (63,883) (1,494) --
-------------------------------------------------------------------------
Net increase (decrease) in shares outstanding 514,436 666,113 140,121 100,004
-------------------------------------------------------------------------
-------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------
</TABLE>
*Commencement of operations.
See accompanying notes to financial statements.
31
<PAGE>
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) JUNE 30, 1998
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. The only transactions of Twenty-Five Fund prior to
commencement of operations were the sale of shares to a principal of Jundt
Associates, Inc. (the "Adviser").
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 Funds' 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 common 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 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.
32
<PAGE>
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED) JUNE 30, 1998
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 open futures sales contracts 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 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.
During 1997, for federal income tax reporting purposes, U.S. Emerging Growth
Fund and Opportunity Fund changed their tax year end to August 31 from December
31. As a result of differing book and tax year-ends for these funds, timing
differences may arise between the ultimate classification of net operating
losses to paid-in capital in accordance with generally accepted accounting
principles.
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 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 counterparty 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,
33
<PAGE>
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED) JUNE 30, 1998
including brokerage commissions, is also treated as a realized gain, or if the
premium is less than the amount 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. At June 30, 1998, there were no open
short sales.
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 organization costs in the same ratio as the number of initial
shares being redeemed to the number of initial shares outstanding at 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 the six months ended June 30, 1998 for Growth Fund, U.S. Emerging Growth
Fund, Twenty-Five Fund and Opportunity Fund, the cost of purchases and proceeds
from sales of securities, other than temporary investments in short-term
securities, were as follows:
<TABLE>
<CAPTION>
Cost of Proceeds
Purchases from Sales
- -------------------------------------------------------------------------------
<S> <C> <C>
Growth Fund $26,205,966 $42,376,676
U.S. Emerging
Growth Fund $17,515,514 $15,460,857
Opportunity Fund
Long-term investment transactions $29,016,122 $22,817,425
Short sale transactions $ 2,580,578 $ 2,644,510
Twenty-Five Fund $ 5,714,535 $ 3,377,958
- -------------------------------------------------------------------------------
</TABLE>
34
<PAGE>
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED) JUNE 30, 1998
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.
During 1998, the funds have entered into administration agreements with
Princeton Administrators, L.P. (the "Administrator") which provide the
Administrator with a monthly administrative fee in an amount 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. During 1997, the annual
minimum fee was $125,000 for each fund. For the year ended December 31, 1997,
the Administrator had agreed to waive the annual minimum provision for U.S.
Emerging Growth and Opportunity Fund. 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 shares as follows:
<TABLE>
<CAPTION>
Account
Maintenance Distribution
Fee Fee
- ------------------------------------------------------
<S> <C> <C>
Class A 0.25% --
Class B 0.25% 0.75%
Class C 0.25% 0.75%
- ------------------------------------------------------
</TABLE>
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, audit and accounting services, insurance and other
miscellaneous expenses.
Legal fees of $38,773 for the six months ended June 30, 1998 for Growth Fund,
$15,115 for U.S. Emerging Growth Fund and $8,771 for Opportunity Fund and $6,433
for Twenty-Five Fund were paid to 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 entered into a Line of Credit Agreement with Norwest Bank,
Minnesota, N.A., for an amount not to exceed the lesser of $3,000,000 or 30% of
the Fund's assets. At June 30, 1998, Opportunity Fund had loans outstanding in
the amount of $674,000. For the six months ended June 30, 1998, the average
daily balance of loans outstanding was $187,473 at a weighted average interest
rate of 8.50%. The maximum amount of loans outstanding at any time during the
period was $1,599,000, or 9.61% of total assets. The loan is collateralized by
certain Opportunity Fund investments.
35
<PAGE>
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (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. (For periods
prior to December 31, 1995, the Growth Fund operated as a closed-end investment
company.)
<TABLE>
<CAPTION>
Net Realized
Beginning Net and Dividends Distributions Ending
Net Asset Investment Unrealized from Net from Net Net Asset
Value Per Income Gain (Loss) on Investment Investment Value Per
Share (Loss) Investments Income Gains Share
- ----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
GROWTH FUND
Class A
Six months ended 6/30/98 (unaudited) $14.20 (0.13) 2.95 -- -- $17.02
Year ended 12/31/97 $13.64 (0.23) 1.64 -- (0.85) $14.20
Year ended 12/31/96 $11.95 (0.26) 2.03 -- (0.08) $13.64
Class B
Six months ended 6/30/98 (unaudited) $13.99 (0.18) 2.89 -- -- $16.70
Year ended 12/31/97 $13.56 (0.32) 1.60 -- (0.85) $13.99
Year ended 12/31/96 $11.95 (0.36) 2.05 -- (0.08) $13.56
Class C
Six months ended 6/30/98 (unaudited) $13.97 (0.19) 2.95 -- -- $16.73
Year ended 12/31/97 $13.54 (0.30) 1.58 -- (0.85) $13.97
Year ended 12/31/96 $11.95 (0.36) 2.03 -- (0.08) $13.54
Class I
Six months ended 6/30/98 (unaudited) $14.28 (0.11) 2.97 -- -- $17.14
Year ended 12/31/97 $13.69 (0.19) 1.63 -- (0.85) $14.28
Year ended 12/31/96 $11.95 (0.23) 2.05 -- (0.08) $13.69
Year ended 12/31/95 $14.95 (0.12) 2.71 -- (5.59) $11.95
Period from 7/1/94 to 12/31/94 $13.53 (0.07) 1.83 -- (0.34)* $14.95
Year ended 6/30/94 $15.10 (0.11) (0.57) -- (0.89)(3) $13.53
Year ended 6/30/93 $13.78 (0.05) 1.38 (0.01) -- $15.10
U.S. EMERGING GROWTH FUND
Class A
Six months ended 6/30/98 (unaudited) $13.09 (0.07) 1.44 -- -- $14.46
Year ended 12/31/97 $12.42 (0.11) 4.09 -- (3.31) $13.09
Period from 1/2/96** to 12/31/96 $10.00 (0.14) 4.47 -- (1.91) $12.42
Class B
Six months ended 6/30/98 (unaudited) $12.90 (0.13) 1.43 -- -- $14.20
Year ended 12/31/97 $12.37 (0.21) 4.05 -- (3.31) $12.90
Period from 1/2/96** to 12/31/96 $10.00 (0.24) 4.52 -- (1.91) $12.37
Class C
Six months ended 6/30/98 (unaudited) $12.88 (0.13) 1.44 -- -- $14.19
Year ended 12/31/97 $12.36 (0.21) 4.04 -- (3.31) $12.88
Period from 1/2/96** to 12/31/96 $10.00 (0.24) 4.51 -- (1.91) $12.36
Class I
Six months ended 6/30/98 (unaudited) $13.25 (0.07) 1.48 -- -- $14.66
Year ended 12/31/97 $12.51 (0.07) 4.12 -- (3.31) $13.25
Period from 1/2/96** to 12/31/96 $10.00 (0.11) 4.53 -- (1.91) $12.51
</TABLE>
*Tax return of capital.
**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 Growth Fund as a closed-end fund
36
<PAGE>
<TABLE>
<CAPTION>
Ratio to Average Net Assets
----------------------------------------
Portfolio Net Assets At
Net Investment Net Gross Total Turnover End of Period
Income (Loss) Expenses Expenses Return(1) Rate (000's Omitted)
- ----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
GROWTH FUND
Class A
Six months ended 6/30/98 (unaudited) (1.71%)(2) 2.23%(2) 2.23%(2) 19.86% 33% $ 663
Year ended 12/31/97 (1.49%) 2.18% 2.18% 10.67% 115% $ 604
Year ended 12/31/96 (1.81%) 2.13% 2.13% 14.81% 57% $ 340
Class B
Six months ended 6/30/98 (unaudited) (2.47%)(2) 2.98%(2) 2.98%(2) 19.37% 33% $ 348
Year ended 12/31/97 (2.28%) 2.93% 2.93% 9.77% 115% $ 189
Year ended 12/31/96 (2.53%) 2.88% 2.88% 14.14% 57% $ 37
Class C
Six months ended 6/30/98 (unaudited) (2.47%)(2) 2.98%(2) 2.98%(2) 19.76% 33% $ 95
Year ended 12/31/97 (2.32%) 2.93% 2.93% 9.82% 115% $ 80
Year ended 12/31/96 (2.49%) 2.88% 2.88% 13.97% 57% $ 2
Class I
Six months ended 6/30/98 (unaudited) (1.46%)(2) 1.98%(2) 1.98%(2) 20.03% 33% $ 84,648
Year ended 12/31/97 (1.22%) 1.93% 1.93% 10.85% 115% $ 80,964
Year ended 12/31/96 (1.56%) 1.88% 1.88% 15.22% 57% $ 96,458
Year ended 12/31/95 (0.72%) 1.60% 1.60% 17.81% 155% $140,642
Period from 7/1/94 to 12/31/94 (0.98%)(2) 1.58%(2) 1.58%(2) 13.06% 19% $223,317
Year ended 6/30/94 (0.63%) 1.55% 1.55% (4.53%) 70% $202,192
Year ended 6/30/93 (0.36%) 1.40% 1.40% 9.64% 66% $473,768
U.S. EMERGING GROWTH FUND
Class A
Six months ended 6/30/98 (unaudited) (1.22%)(2) 1.80%(2) 3.07%(2) 10.47% 85% $ 4,277
Year ended 12/31/97 (0.88%) 1.80% 3.35% 33.54% 264% $ 2,117
Period from 1/2/96** to 12/31/96 (1.36%)(2) 1.80%(2) 3.83%(2) 43.40% 204% $ 1,275
Class B
Six months ended 6/30/98 (unaudited) (1.97%)(2) 2.55%(2) 3.82%(2) 10.08% 85% $ 4,941
Year ended 12/31/97 (1.63%) 2.55% 4.10% 32.55% 264% $ 3,786
Period from 1/2/96** to 12/31/96 (2.15%)(2) 2.55%(2) 3.62%(2) 42.90% 204% $ 1,709
Class C
Six months ended 6/30/98 (unaudited) (1.97%)(2) 2.55%(2) 3.82%(2) 10.17% 85% $ 2,405
Year ended 12/31/97 (1.63%) 2.55% 4.10% 32.50% 264% $ 1,519
Period from 1/2/96** to 12/31/96 (2.13%)(2) 2.55%(2) 4.32%(2) 42.82% 204% $ 1,766
Class I
Six months ended 6/30/98 (unaudited) (0.97%)(2) 1.55%(2) 2.82%(2) 10.64% 85% $ 10,602
Year ended 12/31/97 (0.63%) 1.55% 3.10% 33.87% 264% $ 11,773
Period from 1/2/96** to 12/31/96 (1.09%)(2) 1.55%(2) 3.44%(2) 44.32% 204% $ 9,025
</TABLE>
(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.
(3) Includes tax return of capital of $0.37 per share.
37
<PAGE>
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (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 Net and Dividends Distributions
Net Asset Investment Unrealized from Net from Net
Value Per Income Gain (Loss) on Investment Investment
Share (Loss) Investments Income Gains
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
OPPORTUNITY FUND
Class A
Six months ended 6/30/98 (unaudited) $11.03 (0.08) 2.05 -- --
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
Six months ended 6/30/98 (unaudited) $10.94 (0.12) 2.03 -- --
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
Six months ended 6/30/98 (unaudited) $10.93 (0.12) 2.03 -- --
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
Six months ended 6/30/98 (unaudited) $11.06 (0.07) 2.08 -- --
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
Six months ended 6/30/98 (unaudited) $10.00 (0.05) 3.13 -- --
Class B
Six months ended 6/30/98 (unaudited) $10.00 (0.08) 3.12 -- --
Class C
Six months ended 6/30/98 (unaudited) $10.00 (0.08) 3.12 -- --
Class I
Six months ended 6/30/98 (unaudited) $10.00 (0.03) 3.13 -- --
</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 for periods of less
than one full year are not annualized.
(2) Adjusted to an annual basis.
(3) For Opportunity Fund, excluding interest expense, net of reimbursement.
(4) For Opportunity Fund, excluding interest expense, before reimbursement.
(5) For Opportunity Fund, including interest expense, before reimbursement.
38
<PAGE>
June 30, 1998
<TABLE>
<CAPTION>
Ratio to Average Net Assets
----------------------------------------------------------------
Ending
Net Asset Gross Expenses
Value Per Net Investment Net Gross Including
OPPORTUNITY FUND Share Income (Loss) Expenses(3) Expenses(4) Interest Expense(5)
- ------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Class A
Six months ended 6/30/98 (unaudited) $13.00 (1.41%)(2) 2.14%(2) 3.72%(2) 3.87%(2)
Year ended 12/31/97 $11.03 (1.71%) 2.14% 6.57% 6.85%
Period from 12/26/96* to 12/31/96 $ 9.87 (2.14%)(2) 2.14%(2) 4.23%(2) 4.23%(2)
Class B
Six months ended 6/30/98 (unaudited) $12.85 (2.16%)(2) 2.89%(2) 4.47%(2) 4.60%(2)
Year ended 12/31/97 $10.94 (2.36%) 2.89% 7.32% 7.50%
Period from 12/26/96* to 12/31/96 $ 9.87 (2.98%)(2) 2.89%(2) 4.98%(2) 4.98%(2)
Class C
Six months ended 6/30/98 (unaudited) $12.84 (2.16%)(2) 2.89%(2) 4.47%(2) 4.60%(2)
Year ended 12/31/97 $10.93 (2.49%) 2.89% 7.32% 7.63%
Period from 12/26/96* to 12/31/96 $ 9.87 (3.02%)(2) 2.89%(2)(3) 4.98%(2) 4.98%(2)
Class I
Six months ended 6/30/98 (unaudited) $13.07 (1.16%)(2) 1.89%(2) 3.47%(2) 3.60%(2)
Year ended 12/31/97 $11.06 (1.56%) 1.89% 6.32% 6.70%
Period from 12/26/96* to 12/31/96 $ 9.87 (1.89%)(2) 1.89%(2) 3.98%(2) 3.98%(2)
TWENTY-FIVE FUND
Class A
Six months ended 6/30/98 (unaudited) $13.08 (1.04%)(2) 2.25%(2) 15.67%(2) N/A
Class B
Six months ended 6/30/98 (unaudited) $13.04 (1.79%)(2) 3.00%(2) 16.42%(2) N/A
Class C
Six months ended 6/30/98 (unaudited) $13.04 (1.79%)(2) 3.00%(2) 16.42%(2) N/A
Class I
Six months ended 6/30/98 (unaudited) $13.10 (0.79%)(2) 2.00%(2) 15.42%(2) N/A
<CAPTION>
Portfolio Net Assets At
Total Turnover End of Period
OPPORTUNITY FUND Return(1) Rate (000's Omitted)
- ------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Class A
Six months ended 6/30/98 (unaudited) 17.86% 197% $3,406
Year ended 12/31/97 41.15% 298% $1,084
Period from 12/26/96* to 12/31/96 (1.30%) 0% $ 112
Class B
Six months ended 6/30/98 (unaudited) 17.46% 197% $3,528
Year ended 12/31/97 40.25% 298% $2,298
Period from 12/26/96* to 12/31/96 (1.30%) 0% $ 1
Class C
Six months ended 6/30/98 (unaudited) 17.46% 197% $ 663
Year ended 12/31/97 40.12% 298% $ 427
Period from 12/26/96* to 12/31/96 (1.30%) 0% $ 1
Class I
Six months ended 6/30/98 (unaudited) 18.17% 197% $8,273
Year ended 12/31/97 41.45% 298% $3,973
Period from 12/26/96* to 12/31/96 (1.30%) 0% $ 286
TWENTY-FIVE FUND
Class A
Six months ended 6/30/98 (unaudited) 30.80% 197% $ 757
Class B
Six months ended 6/30/98 (unaudited) 30.40% 197% $ 54
Class C
Six months ended 6/30/98 (unaudited) 30.40% 197% $ 202
Class I
Six months ended 6/30/98 (unaudited) 31.00% 197% $2,131
</TABLE>
*Commencement of operations.
39
<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 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 419168
Kansas City, MO 64141-6168
1-800-370-0612
CUSTODIAN
Norwest Bank Minnesota, N.A.
Sixth & Marquette
Minneapolis, MN 55479
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.
GENERAL INFORMATION REGARDING EACH 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 FINANCIALS AS OF JUNE 30, 1998, WERE NOT AUDITED AND,
ACCORDINGLY, NO OPINION IS EXPRESSED ON THEM.
