<PAGE>
[LOGO]
JUNDT
GROWTH FUND
JUNDT
U.S. EMERGING
GROWTH FUND
JUNDT
OPPORTUNITY FUND
JUNDT
TWENTY-FIVE FUND
ANNUAL REPORT
DECEMBER 31, 1997
SEARCHING TODAY FOR THE
GENIUSES OF TOMORROW-SM-
<PAGE>
LETTER TO SHAREHOLDERS
DEAR SHAREHOLDER,
Since our last opportunity to address shareholders, the stock market provided
some unexpected twists and turns. Stocks rose in the third calendar quarter. In
the final three months of the year, the Asian currency crisis negatively
impacted markets around the world and has continued to be a factor influencing
day-to-day volatility.
In 1997, investors again focused on the 100 largest companies in America. This
resulted in a gain of 22.7% for the Dow Jones Industrial Average and a rise of
better than 31% for the S&P 500 Index. This is the first time either index has
advanced more than 20% for three consecutive years, and while there have been
some fundamental economic reasons for the large stocks' performance, a
significant part of the advance can be attributed to the huge cash flows being
directed to index funds.
JUNDT GROWTH FUND
Most stocks that helped propel the major indexes higher in 1997 do not meet the
minimum growth criteria Jundt Associates deems necessary for inclusion in the
Jundt Growth Fund. We strongly believe, however, that on a long-term basis, the
Jundt Growth Fund's emphasis on companies whose revenues are growing two to
three times faster than the single-digit growth of the largest companies in the
S&P 500 Index will produce results that exceed those of the index.
To a significant number of investors, after-tax returns are a better measurement
of investment results than gross returns. Of the $0.85 per share distribution
paid in 1997 by the Jundt Growth Fund, 100% of the proceeds were long-term
capital gains.
The Jundt Growth Fund Class I shares followed a strong 10.76%* return in the
second quarter with an 11.67%* return in the third quarter of 1997. It appeared
market sentiment was switching from "one-decision" stocks to those stocks we
believe have true, long-term growth potential. The Jundt Growth Fund's third
quarter performance was propelled primarily by our holdings in the oil field
equipment, computer software and drug retail sectors. Its fourth quarter was
impacted by the Asian crisis, along with most other funds. The Jundt Growth
Fund's Class I shares posted a -5.04%* return for the quarter. For the year as a
whole, the Jundt Growth Fund's Class I shares gained 10.85%.*
JUNDT U.S. EMERGING GROWTH FUND
While the consensus in 1997 was that "bigger is better," the Jundt U.S. Emerging
Growth Fund not only outperformed all of its peer indexes but also bettered the
S&P 500 Index. The Fund's Class A shares were up 33.54%* for the year.
The Jundt U.S. Emerging Growth Fund's comparable indexes, the Russell 2000
Growth Index and the Lipper Small Cap Growth Fund Index, were up 12.95% and
15.05%, respectively. The Jundt U.S. Emerging Growth Fund's average annual total
return since inception of 38.45%* for Class A shares puts the Fund in the top 2%
of all small cap funds, according to Lipper Analytical Services, Inc.**
The diverse holdings in the Jundt U.S. Emerging Growth Fund from the oil
service, technology/software and medical devices sectors give the Jundt U.S.
Emerging Growth Fund broad exposure to companies we believe to be among the
fastest-growing corporations in America.
1
<PAGE>
LETTER TO SHAREHOLDERS (CONCLUDED)
JUNDT OPPORTUNITY FUND
The year 1997 marked the first complete year of operations for the Jundt
Opportunity Fund. The Fund is a non-diversified mutual fund. The Fund's
objective is to provide capital appreciation. It implements a flexible
investment strategy by not only investing in equities but also by selling
certain stocks short, taking positions in options and futures contracts and
borrowing to purchase portfolio securities. As a non-diversified mutual fund,
the Jundt Opportunity Fund may hold larger individual stock positions than a
diversified mutual fund.
While the Jundt Opportunity Fund's second-half performance in 1997 was not as
strong as the first half, the Jundt Opportunity Fund's Class A shares did post a
41.15%* total return for calendar year 1997, compared to 19.86% return for the
Lipper Capital Appreciation Fund Index. This performance enabled the Jundt
Opportunity Fund to finish the year among the top 12 capital appreciation funds,
according to Lipper Analytical Services, Inc.***
JUNDT TWENTY-FIVE FUND
In addition to reviewing our Funds' 1997 performance, this letter allows us the
opportunity to introduce the Jundt Twenty-Five Fund, a new fund available to
investors on January 1, 1998. With an investment objective of long-term capital
appreciation, the Jundt Twenty-Five Fund is a non-diversified mutual fund that
will customarily maintain a core investment portfolio of 20 to 30 common stocks.
For more information about the Fund, including obtaining the Fund's prospectus,
please call 1-800-370-0612.
With the addition of the Jundt Twenty-Five Fund, Jundt Associates is well
positioned as a growth stock manager to provide four growth funds with distinct
investment objectives.
Again, we thank you for placing your trust in Jundt Associates. We value your
business and will continue to diligently and prudently manage your assets.
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 366 "small cap" mutual funds (treating separate classes
of any funds as separate funds) for the two-year period ending December 31,
1997, as published by Lipper Analytical Services, Inc.
*** Based on average annual total return (without consideration of applicable
sales charges) of 233 "capital appreciation" mutual funds (treating
separate classes of any funds as separate funds) for the year ending
December 31, 1997, 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 DECEMBER 31, 1997
(AS A PERCENTAGE OF NET ASSETS)
- --------------------------------------------------------------------------------
[CHART]
<TABLE>
<CAPTION>
<S> <C>
Insurance 2.4%
Computer Services/
Hardware & Software 21.1%
Telecommunications 18.7%
Retail 11.2%
Energy 21.3%
Restaurants 2.8%
Medical Devices/Drugs 18.7%
</TABLE>
3
<PAGE>
PERFORMANCE DATA: GROWTH FUND (UNAUDITED)
- --------------------------------------------------------------------------------
TOTAL RETURN BASED ON A $10,000 INVESTMENT
- --------------------------------------------------------------------------------
[GRAPH]
<TABLE>
<CAPTION>
Plot points for the JUNDT GROWTH FUND as of December 31, 1997
Without Sales Charge
Jundt
Growth
Fund(1) Russell 1000 Lipper Growth
Date Class I Index(2) Fund Index(3)
- ---------------------------------------------------------
<S> <C> <C> <C>
9-3-91 $10,000 $10,000 $10,000
12-31-97 $17,576 $29,063 $25,575
<CAPTION>
With Sales Charge
Jundt
Growth
Fund(1)
Date Class I
- ---------------------
<S> <C>
9-3-91 $ 9,475
12-31-97 $16,653
</TABLE>
AVERAGE ANNUAL TOTAL RETURNS (for periods ended December 31, 1997)
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SINCE SINCE
1-YEAR 5-YEAR INCEPTION(4) INCEPTION(5)
<S> <C> <C> <C> <C>
JUNDT GROWTH CLASS A
Without sales charge* 10.67% -- -- 13.57%
With sales charge (a) 4.86 -- -- 10.56
JUNDT GROWTH CLASS B
Without sales charge* 9.77 -- -- 12.78
With sales charge (b) 5.77 -- -- 11.45
JUNDT GROWTH CLASS C
Without sales charge* 9.82 -- -- 12.72
With sales charge (c) 8.82 -- -- 12.72
JUNDT GROWTH CLASS I
Without sales charge* 10.85 9.53% 9.32% --
With sales charge (a) 5.03 8.35 8.39 --
RUSSELL 1000 INDEX 32.85 19.90 18.50 27.54
LIPPER GROWTH FUND INDEX 28.08 17.08 15.98 22.66
- --------------------------------------------------------------------------------
</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 without
deduction of the current maximum initial sales charge of 5.25%, and the other
line reflects total return after deduction of such sales 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 December 31, 1997
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
COMMON STOCKS
Industry Description and Issue Number of Shares Cost Market Value (a)
- --------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
CLIENT SERVER SOFTWARE (9.3%)
- --------------------------------------------------------------------------------------------------------------
HBO & Company 77,600 $ 2,282,761 $ 3,724,800
Peoplesoft Inc. (b) 100,400 2,082,630 3,915,600
--------------------------------
4,365,391 7,640,400
--------------------------------
COMPUTER HARDWARE (3.7%)
- --------------------------------------------------------------------------------------------------------------
Compaq Computer Corporation 38,800 2,688,029 2,189,775
Intel Corporation 12,000 952,909 843,000
--------------------------------
3,640,938 3,032,775
--------------------------------
COMPUTER SERVICES/SOFTWARE (6.3%)
- --------------------------------------------------------------------------------------------------------------
Computer Associates International, Inc. 31,350 1,594,923 1,657,631
Microsoft Corporation (b) 18,700 1,890,644 2,416,975
Sterling Commerce, Inc. (b) 27,800 812,269 1,068,562
--------------------------------
4,297,836 5,143,168
--------------------------------
DATABASE SOFTWARE (1.8%)
- --------------------------------------------------------------------------------------------------------------
J.D. Edwards & Company (b) 49,600 1,575,206 1,463,200
--------------------------------
ENERGY (19.1%)
- --------------------------------------------------------------------------------------------------------------
Baker Hughes Incorporated 44,700 1,586,202 1,950,037
BJ Services Company (b) 12,600 908,107 906,412
Cooper Cameron Corporation (b) 14,300 942,415 872,300
EVI, Inc. (b) 14,100 931,288 729,675
Global Marine Inc. (b) 88,400 1,711,900 2,165,800
Santa Fe International Corporation 50,300 1,715,073 2,046,581
Schlumberger Limited 51,200 2,526,505 4,121,600
Smith International, Inc. (b) 45,600 1,541,555 2,798,700
--------------------------------
11,863,045 15,591,105
--------------------------------
INSURANCE (2.4%)
- --------------------------------------------------------------------------------------------------------------
The Progressive Corporation 16,200 1,756,946 1,941,975
--------------------------------
</TABLE>
See accompanying notes to schedule of investments.
5
<PAGE>
Jundt Growth Fund
SCHEDULE OF INVESTMENTS (CONTINUED) December 31, 1997
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
COMMON STOCKS (CONCLUDED)
Industry Description and Issue Number of Shares Cost Market Value (a)
- --------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
MEDICAL DEVICES/DRUGS (18.7%)
- --------------------------------------------------------------------------------------------------------------
BioChem Pharma Inc. (b) 37,400 $ 815,382 $ 780,725
Centocor, Inc. (b) 20,000 930,380 665,000
Eli Lilly and Company 58,800 2,190,180 4,093,950
Guidant Corporation 20,000 856,126 1,245,000
Medtronic, Inc. 34,200 1,004,708 1,789,088
Merck & Co., Inc. 10,600 989,086 1,126,250
Pfizer Inc. 37,700 2,318,972 2,811,006
Warner-Lambert Company 22,600 3,133,919 2,802,400
--------------------------------
12,238,753 15,313,419
--------------------------------
RESTAURANTS (2.8%)
- --------------------------------------------------------------------------------------------------------------
Starbucks Corp. (b) 59,700 1,754,640 2,290,988
--------------------------------
RETAIL (11.2%)
- --------------------------------------------------------------------------------------------------------------
AutoZone, Inc. (b) 64,300 1,837,611 1,864,700
Bed, Bath & Beyond, Inc. (b) 25,600 875,188 985,600
Staples, Inc. (b) 68,662 1,288,366 1,905,371
The Home Depot, Inc. 74,624 2,213,656 4,393,488
--------------------------------
6,214,821 9,149,159
--------------------------------
TELECOMMUNICATION INFRASTRUCTURE (11.8%)
- --------------------------------------------------------------------------------------------------------------
ADC Telecommunications, Inc. (b) 42,500 1,276,408 1,774,375
Cisco Systems, Inc. (b) 51,300 2,416,873 2,859,975
Lucent Technologies Inc. 27,900 1,765,700 2,228,513
Tellabs, Inc. (b) 53,300 1,372,042 2,818,238
--------------------------------
6,831,023 9,681,101
--------------------------------
WIRELESS/TELECOMMUNICATION SERVICES (6.9%)
- --------------------------------------------------------------------------------------------------------------
AirTouch Communications, Inc. (b) 76,000 2,353,288 3,158,750
WorldCom, Inc. (b) 83,600 1,585,592 2,528,900
--------------------------------
3,938,880 5,687,650
--------------------------------
TOTAL COMMON STOCKS (94.0%) 58,477,479 76,934,940
--------------------------------
--------------------------------
</TABLE>
See accompanying notes to schedule of investments.
6
<PAGE>
Jundt Growth Fund
SCHEDULE OF INVESTMENTS (CONCLUDED) December 31, 1997
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
CONVERTIBLE CORPORATE BONDS
Principal Amount/
Industry Description and Issue Number of Shares Cost Market Value (a)
- --------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
ENERGY (2.2%)
- --------------------------------------------------------------------------------------------------------------
Lowes Corp., 3.125%, 9/15/07 $ 1,825,000 $ 1,843,431 $ 1,827,281
--------------------------------
TOTAL CONVERTIBLE CORPORATE BONDS (2.2%) 1,843,431 1,827,281
--------------------------------
--------------------------------
SHORT-TERM SECURITIES
Issue
- --------------------------------------------------------------------------------------------------------------
REPURCHASE AGREEMENT (4.0%)
- --------------------------------------------------------------------------------------------------------------
Repurchase agreement with Merrill Lynch
Government Securities, Inc., 6.00% acquired
on 12/31/97 and due 1/2/98 with proceeds of
$3,275,091 (collateralized by $3,185,000 U.S.
Treasury Note, 6.625%, due 3/31/02, value
including accrued interest, $3,393,600) 3,274,000 3,274,000 3,274,000
------------ ------------
MONEY MARKET FUND (0.0%)
- --------------------------------------------------------------------------------------------------------------
Norwest Treasury Fund, 5.00% (c) 310 310 310
--------------------------------
TOTAL SHORT-TERM SECURITIES (4.0%) 3,274,310 3,274,310
--------------------------------
--------------------------------
Total investments in securities (100.2%) $ 63,595,220 (d) 82,036,531
Liabilities in excess of other assets (-0.2%) ------------ (199,624)
------------ ------------
NET ASSETS (100.0%) $ 81,836,907
------------
------------
</TABLE>
Notes to Schedule of Investments:
Percentage of investments as shown is the ratio of the total
market value to total net assets.
(a) Securities are valued by procedures described in note 2 to the
financial statements.
(b) Presently non-income producing.
(c) Rate changes to reflect market conditions. Rate disclosed is as of
December 31, 1997.
(d) Cost for federal income tax purposes at December 31, 1997 was
$63,848,364. The aggregate gross unrealized appreciation and
depreciation on investments in securities based on this cost were:
<TABLE>
<CAPTION>
------------------------------------------------------------------
<S> <C>
Gross unrealized appreciation $19,861,449
Gross unrealized depreciation (1,673,282)
-----------
-----------
Net unrealized appreciation $18,188,167
------------------------------------------------------------------
</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. Particular
emphasis is placed on companies we believe will achieve annual rates of revenue
growth of 25% or greater. See the Fund's prospectus for a description of the
risks that may be associated with an investment in the Fund.
INDUSTRY SECTORS REPRESENTED IN THE FUND'S PORTFOLIO AS OF DECEMBER 31, 1997
(AS A PERCENTAGE OF NET ASSETS)
- -------------------------------------------------------------------------------
[CHART]
<TABLE>
<CAPTION>
<S> <C>
Miscellaneous 7.3%
Computer Services/
Hardware & Software 17.4%
Telecommunications 13.2%
Retail 5.7%
Energy 20.4%
Restaurants 7.0%
Medical Devices/Drugs 6.1%
Healthcare Services 2.3%
Internet Technology 2.4%
</TABLE>
8
<PAGE>
PERFORMANCE DATA: U.S. EMERGING GROWTH FUND (UNAUDITED)
- --------------------------------------------------------------------------------
TOTAL RETURN BASED ON A $10,000 INVESTMENT
- --------------------------------------------------------------------------------
[GRAPH]
<TABLE>
<CAPTION>
Plot points for JUNDT US EMERGING GROWTH FUND as of December 31, 1997
WITHOUT SALES CHARGE
JUNDT
U.S. EMERGING RUSSELL 2000
GROWTH FUND(1) RUSSELL 2000 GROWTH FUND LIPPER SMALL CAP
DATE CLASS A INDEX(2) INDEX (3) GROWTH FUND INDEX(4)
- ----------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
01-02-96 $10,000 $10,000 $10,000 $10,000
12-31-97 $19,150 $14,217 $12,553 $13,158
WITH SALES CHARGE
JUNDT
U.S. EMERGING
GROWTH FUND(1)
DATE CLASS A
- ---------------------------
<S> <C>
1-02-96 $ 9,475
12-31-97 $18,145
</TABLE>
AVERAGE ANNUAL TOTAL RETURNS (for periods ended December 31, 1997)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SINCE
1-YEAR INCEPTION(5)
<S> <C> <C>
JUNDT U.S EMERGING GROWTH CLASS A
Without sales charge* 33.54% 38.45%
With sales charge (a) 26.53 34.76
JUNDT U.S EMERGING GROWTH CLASS B
Without sales charge* 32.55 37.69
With sales charge (b) 28.55 36.23
JUNDT U.S EMERGING GROWTH CLASS C
Without sales charge* 32.50 37.62
With sales charge (c) 31.50 37.62
JUNDT U.S EMERGING GROWTH CLASS I 33.87 39.06
RUSSELL 2000 INDEX 22.36 19.26
RUSSELL 2000 GROWTH INDEX 12.95 12.06
LIPPER SMALL CAP GROWTH FUND INDEX 15.05 14.71
</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 $18,542, $18,923 and $19,319, 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 Index measures the performance of the 2,000 smallest
companies represented in the Russell 3000 Index (comprised 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 January 2, 1996.
(3) The Russell 2000 Growth Index measures the performance
of the companies within the Russell 2000 Index with relatively higher
price-to-book ratios and forecasted growth values. THE INDEX DOES NOT REFLECT
THE DEDUCTION OF SALES CHARGES AND EXPENSES THAT ARE BORNE BY MUTUAL FUND
INVESTORS. Inception date for index data is January 2, 1996.
Previously, the Fund used the Russell 2000 Index as a benchmark. Going forward,
the Fund will compare its performance to the Russell 2000 Growth Index, as it is
better suited to the Fund's objective.
(4) 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.
(5) Inception dates are January 2, 1996 for the Fund's shares, the Russell 2000
Index and the Russell 2000 Growth Index, and December 29, 1995 for Lipper Small
Cap Growth Fund Index data.
PAST PERFORMANCE OF THE FUND SHOULD NOT BE CONSIDERED PREDICTIVE OF FUTURE FUND
PERFORMANCE. PERFORMANCE INFORMATION RELATING TO JUNDT U.S. EMERGING GROWTH FUND
REFLECTS THE VOLUNTARY PAYMENT OR REIMBURSEMENT BY JUNDT ASSOCIATES, INC., THE
FUND'S INVESTMENT ADVISER, OF CERTAIN FEES AND EXPENSES. INVESTMENT RETURN AND
PRINCIPAL VALUE OF FUND SHARES WILL FLUCTUATE SO THAT SUCH SHARES, WHEN
REDEEMED, MAY BE WORTH MORE OR LESS THAN THEIR ORIGINAL COST. INVESTMENTS IN
SMALLER-CAPITALIZATION COMPANIES MAY EXPERIENCE GREATER DAILY PRICE FLUCTUATIONS
THAN INVESTMENTS IN LARGER COMPANIES.
9
<PAGE>
Jundt U.S. Emerging Growth Fund
SCHEDULE OF INVESTMENTS December 31, 1997
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
COMMON STOCKS
Industry Description and Issue Number of Shares Cost Market Value (a)
- ---------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
CLIENT SERVER SOFTWARE (1.3%)
- ---------------------------------------------------------------------------------------------------------
i2 Technologies, Inc. (b) 4,800 $ 200,616 $ 253,200
-------------------------------
COMPUTER HARDWARE (3.0%)
- ---------------------------------------------------------------------------------------------------------
Excel Switching Corporation (b) 20,000 420,000 357,500
Uniphase Corporation (b) 5,100 195,779 211,013
-------------------------------
615,779 568,513
-------------------------------
COMPUTER SERVICES/SOFTWARE (13.1%)
- ---------------------------------------------------------------------------------------------------------
CBT Group Public Limited Company (b)(c) 5,100 393,681 418,838
Citrix Systems, Inc. (b) 5,000 385,829 380,000
Documentum, Inc. (b) 5,300 194,775 223,262
FlexiInternational Software, Inc. (b) 20,000 232,500 310,000
Great Plains Software, Inc. (b) 12,500 200,000 340,625
The Vantive Corporation (b) 10,000 223,750 252,500
Transaction Systems Architects, Inc. (b) 5,200 182,723 197,600
Veritas Software Corporation (b) 7,800 373,471 397,800
-------------------------------
2,186,729 2,520,625
-------------------------------
ENERGY (20.4%)
- ---------------------------------------------------------------------------------------------------------
Barrett Resources Corporation (b) 5,400 182,056 163,350
BJ Services Company (b) 5,000 399,675 359,688
Dril-Quip, Inc. (b) 15,000 360,000 526,875
Falcon Drilling Company, Inc. (b) 18,000 498,795 631,125
Input/Output, Inc. (b) 11,000 342,347 326,562
National-Oilwell, Inc. (b) 16,100 563,081 550,419
Rowan Companies, Inc. (b) 10,900 392,653 332,450
Smith International, Inc. (b) 8,900 576,809 546,238
Superior Energy Services, Inc. (b) 18,600 189,811 188,325
Swift Energy Company (b) 7,920 182,203 166,815
Unit Corporation (b) 13,900 204,900 133,787
-------------------------------
3,892,330 3,925,634
-------------------------------
HEALTHCARE SERVICES (2.3%)
- ---------------------------------------------------------------------------------------------------------
PAREXEL International Corporation (b) 12,100 440,137 447,700
-------------------------------
</TABLE>
See accompanying notes to schedule of investments.
10
<PAGE>
Jundt U.S. Emerging Growth Fund
SCHEDULE OF INVESTMENTS (CONTINUED) December 31, 1997
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
COMMON STOCKS (CONTINUED)
Industry Description and Issue Number of Shares Cost Market Value (a)
- ---------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
INTERNET TECHNOLOGY (2.4%)
- ---------------------------------------------------------------------------------------------------------
RealNetworks, Inc. (b) 20,000 $ 250,000 $ 277,500
Security Dynamics Technologies, Inc. (b) 5,000 140,625 178,750
-------------------------------
390,625 456,250
-------------------------------
MEDICAL DEVICES/DRUGS (6.1%)
- ---------------------------------------------------------------------------------------------------------
Arterial Vascular Engineering, Inc. (b) 2,900 147,424 188,500
BioChem Pharma Inc. (b) 20,000 430,000 417,500
Sabratek Corporation (b) 19,400 504,223 557,750
-------------------------------
1,081,647 1,163,750
-------------------------------
RESTAURANTS (7.0%)
- ---------------------------------------------------------------------------------------------------------
Apple South, Inc. 10,800 206,496 141,750
Hotel Discovery Inc., warrants (b)(d) 30,900 33,107 32,831
Rainforest Cafe, Inc. (b) 20,300 463,534 669,900
Starbucks Corp. (b) 13,200 489,076 506,550
-------------------------------
1,192,213 1,351,031
-------------------------------
RETAIL (5.7%)
- ---------------------------------------------------------------------------------------------------------
Party City Corporation (b) 12,700 362,300 409,575
Petco Animal Supplies, Inc. (b) 25,500 612,140 612,000
U.S.A. Floral Products, Inc. (b) 5,000 65,000 78,750
-------------------------------
1,039,440 1,100,325
-------------------------------
TELECOMMUNICATION INFRASTRUCTURE (7.0%)
- ---------------------------------------------------------------------------------------------------------
Advanced Fibre Communications, Inc. (b) 5,400 149,512 157,275
At Home Corporation (b) 30,700 334,356 771,337
Geotel Communications Corporation (b) 11,300 200,417 176,562
Saville Systems PLC (b)(c) 5,600 199,181 232,400
-------------------------------
883,466 1,337,574
-------------------------------
</TABLE>
See accompanying notes to schedule of investments.
11
<PAGE>
Jundt U.S. Emerging Growth Fund
SCHEDULE OF INVESTMENTS (CONTINUED) December 31, 1997
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
COMMON STOCKS (CONCLUDED)
Industry Description and Issue Number of Shares Cost Market Value (a)
- ---------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
WIRELESS/TELECOMMUNICATION SERVICES (6.2%)
- ---------------------------------------------------------------------------------------------------------
Lightbridge, Inc. (b) 12,600 $ 192,150 $ 239,400
Mobile Telecommunication Technologies Corp. (b) 15,200 288,800 334,400
Pacific Gateway Exchange, Inc. (b) 6,300 153,840 339,019
RSL Communications, Ltd. (b) 12,700 290,485 279,400
-------------------------------
925,275 1,192,219
-------------------------------
MISCELLANEOUS (7.3%)
- ---------------------------------------------------------------------------------------------------------
ABR Information Services, Inc. (b) 8,600 227,500 205,325
Concord EFS, Inc. (b) 8,000 222,971 199,000
Galileo Technology Ltd. (b) 10,300 175,100 297,412
Sunrise Assisted Living, Inc. (b) 5,400 200,475 232,875
Sykes Enterprises, Incorporated (b) 23,400 575,228 456,300
-------------------------------
1,401,274 1,390,912
-------------------------------
TOTAL COMMON STOCKS (81.8%) 14,249,531 15,707,733
-------------------------------
-------------------------------
</TABLE>
See accompanying notes to schedule of investments.
12
<PAGE>
Jundt U.S. Emerging Growth Fund
SCHEDULE OF INVESTMENTS (CONCLUDED) December 31, 1997
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHORT-TERM SECURITIES
Principal Amount/
Issue Number of Shares Cost Market Value (a)
- ------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
REPURCHASE AGREEMENTS (18.2%)
- ------------------------------------------------------------------------------------------------------------------------
Repurchase agreement with Norwest Bank, Minnesota,
N.A., 4.85% acquired on 12/31/97 and due 1/2/98
with proceeds of $1,150,310 (collateralized by $1,185,000
U.S. Treasury Bill, 5.78% due 2/26/98, value, $1,174,335) $1,150,000 $ 1,150,000 $ 1,150,000
Repurchase agreement with Merrill Lynch Government
Securities, Inc., 6.00% acquired on 12/31/97 and due
1/2/98 with proceeds of $2,330,777 (collateralized by
$2,260,000 U.S. Treasury Note, 6.625%, due 7/31/01,
value including accrued interest, $2,446,550) 2,330,000 2,330,000 2,330,000
--------------------------------
3,480,000 3,480,000
--------------------------------
MONEY MARKET FUND (0.0%)
- ------------------------------------------------------------------------------------------------------------------------
Norwest Treasury Fund, 5.00% (e) 2,567 2,567 2,567
--------------------------------
TOTAL SHORT-TERM SECURITIES (18.2%) 3,482,567 3,482,567
--------------------------------
--------------------------------
Total investments in securities (100.0%) $ 17,732,098(f) 19,190,300
-------------
-------------
Other assets in excess of other liabilities (0.0%) 4,613
------------
NET ASSETS (100.0%) $ 19,194,913
------------
------------
</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 Depositary Receipts.
(d) The warrants enable the holder to subscribe to one share for every
warrant held at $6.50 per share. The warrants can be exercised from
November 17, 1997 through November 4, 2001.
(e) Rate changes to reflect market conditions. Rate disclosed is as of
December 31, 1997.
(f) Cost for federal income tax purposes at December 31, 1997 was
$17,785,751. The aggregate gross unrealized appreciation and
depreciation on investments in securities based on this cost were:
<TABLE>
------------------------------------------------------------------
<S> <C>
Gross unrealized appreciation $2,070,108
Gross unrealized depreciation (665,559)
-----------
Net unrealized appreciation $1,404,549
------------------------------------------------------------------
</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 DECEMBER 31, 1997
(AS A PERCENTAGE OF NET ASSETS)
- --------------------------------------------------------------------------------
[CHART]
<TABLE>
<CAPTION>
<S> <S>
Computer Services/
Hardware & Software 15.9%
Miscellaneous 14.9%
Telecommunications 16.8%
Energy 17.4%
Internet Technology 1.0%
Retail 8.6%
Restaurants 5.9%
Medical Devices/Drugs 12.9%
</TABLE>
14
<PAGE>
PERFORMANCE DATA: OPPORTUNITY FUND (UNAUDITED)
- --------------------------------------------------------------------------------
TOTAL RETURN BASED ON A $10,000 INVESTMENT
- --------------------------------------------------------------------------------
[GRAPH]
<TABLE>
<CAPTION>
Plot points for JUNDT OPPORTUNITY FUND as of December 31, 1997.
WITHOUT SALES CHARGE
JUNDT
OPPORTUNITY
FUND(1) RUSSELL 3000 LIPPER CAPITAL
DATE CLASS A INDEX(2) APPR FUND INDEX(3)
- ----------------------------------------------------------------
<S> <C> <C> <C>
12-26-96 $10,000 $10,000 $10,000
12-31-96 $ 9,870 $ 9,885 $10,010
12-31-97 $13,932 $13,027 $11,998
<CAPTION>
WITH SALES CHARGE
JUNDT
OPPORTUNITY
FUND(1)
DATE CLASS A
- ------------------------
<S> <C>
12-26-96 $ 9,475
12-31-96 $ 9,352
12-31-97 $13,200
</TABLE>
AVERAGE ANNUAL TOTAL RETURNS (for periods ended December 31, 1997)
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SINCE
1-YEAR INCEPTION(4)
<S> <C> <C>
JUNDT OPPORTUNITY CLASS A
Without sales charge* 41.15% 38.69%
With sales charge (a) 33.74 31.51
JUNDT OPPORTUNITY CLASS B
Without sales charge* 40.25 37.82
With sales charge (b) 36.25 33.89
JUNDT OPPORTUNITY CLASS C
Without sales charge* 40.12 37.70
With sales charge (c) 39.12 37.70
JUNDT OPPORTUNITY CLASS I 41.45 38.99
RUSSELL 3000 INDEX 31.79 29.81
LIPPER CAPITAL APPRECIATION
FUND INDEX 19.86 19.70
</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 $13,443, $13,830 and $13,961,
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. FOR MORE
INFORMATION, SEE THE FUND'S PROSPECTUS FOR A DESCRIPTION OF RISKS THAT MAY BE
ASSOCIATED WITH AN INVESTMENT IN THE FUND. 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 December 31, 1997
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
COMMON STOCKS
Industry Description and Issue Number of Shares Cost Market Value (a)
- --------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
CLIENT SERVER SOFTWARE (4.2%)
- --------------------------------------------------------------------------------------------------------------
HBO & Company 4,000 $ 170,250 $ 192,000
Peoplesoft Inc. (b) 3,400 102,715 132,600
--------------------------------
272,965 324,600
--------------------------------
COMPUTER HARDWARE (2.8%)
- --------------------------------------------------------------------------------------------------------------
Compaq Computer Corporation 3,900 254,709 220,106
--------------------------------
COMPUTER SERVICES/SOFTWARE (7.6%)
- --------------------------------------------------------------------------------------------------------------
Compuware Corporation (b) 6,800 240,550 217,600
Microsoft Corporation (b) 2,900 392,712 374,825
--------------------------------
633,262 592,425
--------------------------------
DATABASE SOFTWARE (1.3%)
- --------------------------------------------------------------------------------------------------------------
J.D. Edwards & Company (b) 3,400 117,327 100,300
--------------------------------
ENERGY (14.8%)
- --------------------------------------------------------------------------------------------------------------
Cooper Cameron Corporation (b) 1,000 65,896 61,000
Global Marine Inc. (b) 4,000 95,240 98,000
IRI International Corporation (b) 7,000 126,000 98,000
Santa Fe International Corporation 3,000 147,180 122,062
Schlumberger Limited 4,000 327,553 322,000
Smith International, Inc. (b) 5,500 397,955 337,562
Swift Energy Company (b) 5,170 133,938 108,893
--------------------------------
1,293,762 1,147,517
--------------------------------
INTERNET TECHNOLOGY (1.0%)
- --------------------------------------------------------------------------------------------------------------
Security Dynamics Technologies, Inc. (b) 2,100 59,063 75,075
--------------------------------
MEDICAL DEVICES/DRUGS (12.9%)
- --------------------------------------------------------------------------------------------------------------
Eli Lilly and Company 2,200 151,423 153,175
Guidant Corporation 1,900 87,721 118,275
Pfizer Inc. 3,200 233,696 238,600
Warner-Lambert Company 4,000 539,632 496,000
--------------------------------
1,012,472 1,006,050
--------------------------------
</TABLE>
See accompanying notes to schedule of investments.
16
<PAGE>
Jundt Opportunity Fund
SCHEDULE OF INVESTMENTS (CONTINUED) December 31, 1997
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
COMMON STOCKS (CONCLUDED)
Industry Description and Issue Number of Shares Cost Market Value (a)
- --------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
RESTAURANTS (5.9%)
- --------------------------------------------------------------------------------------------------------------
Hotel Discovery Inc., warrants (b) (c) 12,100 $ 12,964 $ 12,856
Rainforest Cafe, Inc. (b) 7,600 229,900 250,800
Starbucks Corp. (b) 5,100 171,565 195,713
--------------------------------
414,429 459,369
--------------------------------
RETAIL (8.6%)
- --------------------------------------------------------------------------------------------------------------
AutoZone, Inc. (b) 12,000 355,262 348,000
The Home Depot, Inc. 5,500 317,611 323,813
--------------------------------
672,873 671,813
--------------------------------
TELECOMMUNICATION INFRASTRUCTURE (11.1%)
- --------------------------------------------------------------------------------------------------------------
ADC Telecommunications, Inc. (b) 3,000 92,625 125,250
At Home Corporation (b) 19,100 496,095 479,887
Cisco Systems, Inc. (b) 4,650 253,545 259,238
--------------------------------
842,265 864,375
--------------------------------
WIRELESS/TELECOMMUNICATION SERVICES (5.7%)
- --------------------------------------------------------------------------------------------------------------
AirTouch Communications, Inc. (b) 7,500 282,450 311,719
Mobile Telecommunication Technologies Corp. (b) 6,200 117,800 136,400
--------------------------------
400,250 448,119
--------------------------------
MISCELLANEOUS (14.9%)
- --------------------------------------------------------------------------------------------------------------
ABR Information Services, Inc. (b) 4,300 129,538 102,663
Atlantic Coast Airlines, Inc. 3,900 118,950 123,825
Bright Horizons Inc. (b) 11,000 143,000 206,250
C.H. Robinson Worldwide, Inc. 20,000 360,000 447,500
Sykes Enterprises, Incorporated (b) 14,100 363,075 274,950
--------------------------------
1,114,563 1,155,188
--------------------------------
TOTAL COMMON STOCKS (90.8%) 7,087,940 7,064,937
--------------------------------
--------------------------------
</TABLE>
See accompanying notes to schedule of investments.
17
<PAGE>
Jundt Opportunity Fund
SCHEDULE OF INVESTMENTS (CONCLUDED) December 31, 1997
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
CONVERTIBLE CORPORATE BONDS
Principal Amount/
Industry Description and Issue Number of Shares Cost Market Value (a)
- --------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
ENERGY (2.6%)
- --------------------------------------------------------------------------------------------------------------
Lowes Corp., 3.125%, 9/15/07 $ 206,000 $ 232,780 $ 206,257
--------------------------------
TOTAL CONVERTIBLE CORPORATE BONDS (2.6%) 232,780 206,257
--------------------------------
--------------------------------
SHORT-TERM SECURITIES (7.3%)
Issue
- --------------------------------------------------------------------------------------------------------------
REPURCHASE AGREEMENT (7.3%)
- --------------------------------------------------------------------------------------------------------------
Repurchase agreement with Norwest Bank,
Minnesota, N.A., 4.75% acquired on 12/31/97
and due 1/2/98 with proceeds of $568,150
(collateralized by $585,000 U.S. Treasury
Bills, 5.78%, due 2/26/98, value, $579,735) 568,000 568,000 568,000
--------------------------------
MONEY MARKET FUND (0.0%)
- --------------------------------------------------------------------------------------------------------------
Norwest Treasury Fund, 5.00% (d) 533 533 533
--------------------------------
TOTAL SHORT-TERM SECURITIES (7.3%) 568,533 568,533
--------------------------------
--------------------------------
Total investments in securities (100.7%) $ 7,889,253(e) 7,839,727
Liabilities in excess of other assets (-0.7%) ------------ (57,639)
------------ ------------
NET ASSETS (100.0%) $ 7,782,088
------------
------------
</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) The warrants enable the holder to subscribe to one share for every
warrant held at $6.50 per share. The warrants can be exercised from
November 17, 1997 through November 4, 2001.
(d) Rate changes to reflect market conditions. Rate disclosed is as of
December 31, 1997.
(e) Also represents cost for federal income tax purposes as of December
31, 1997. The aggregate gross unrealized appreciation and depreciation
on investments in securities based on this cost were:
<TABLE>
<CAPTION>
-----------------------------------------------------
<S> <C>
Gross unrealized appreciation $ 400,678
Gross unrealized depreciation (450,204)
----------
Net unrealized depreciation $ (49,526)
-----------------------------------------------------
</TABLE>
18
<PAGE>
FINANCIAL STATEMENTS December 31, 1997
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
STATEMENTS OF ASSETS AND LIABILITIES
Jundt Jundt U.S. Jundt Jundt
Growth Emerging Opportunity Twenty-Five
Fund Growth Fund Fund Fund
- ----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
ASSETS
- ----------------------------------------------------------------------------------------------------------------------------------
Investment in securities, at market value (note 2) including
repurchase agreements of $3,274,000, $3,480,000, $568,000
and $0, respectively (identified cost: $63,595,220,
$17,732,098, $7,889,253 and $0, respectively) $82,036,531 $19,190,300 $ 7,839,727 $ --
Cash -- -- 1,538 40
Receivable for capital shares sold 173,362 58,741 71,740 1,000,000
Dividends and accrued interest receivable 36,920 553 3,035 --
Receivable from investment adviser -- 2,503 -- --
Deferred organization costs -- 52,090 33,884 64,000
Prepaid expenses 21,184 17,473 13,334 --
--------------------------------------------------------
Total assets 82,267,997 19,321,660 7,963,258 1,064,040
--------------------------------------------------------
LIABILITIES
- ----------------------------------------------------------------------------------------------------------------------------------
Payable for capital shares redeemed 155,432 15,563 14 --
Payable for securities purchased -- -- 118,950 --
Accrued investment advisory fee 69,401 16,040 18,037 --
Accrued administrative fee 13,880 3,208 1,306 --
Interest payable (note 5) -- -- 234 --
Accrued distribution fee 308 4,882 2,505 --
Organization costs payable -- -- -- 64,000
Accrued expenses and other liabilities 192,069 87,054 40,124 --
--------------------------------------------------------
Total liabilities 431,090 126,747 181,170 64,000
--------------------------------------------------------
Net assets applicable to outstanding capital stock $81,836,907 $19,194,913 $ 7,782,088 $ 1,000,040
--------------------------------------------------------
--------------------------------------------------------
NET ASSETS CONSIST OF
- ----------------------------------------------------------------------------------------------------------------------------------
Capital stock (note 1) $64,375,588 $17,502,085 $ 7,965,684 $ 1,000,040
Net investment loss -- (43,835) (37,756) --
Accumulated net realized gain (loss) on investments (979,992) 278,461 (96,314) --
Unrealized appreciation (depreciation) on investments 18,441,311 1,458,202 (49,526) --
--------------------------------------------------------
Total, representing net assets applicable to
outstanding capital stock $81,836,907 $19,194,913 $ 7,782,088 $ 1,000,040
--------------------------------------------------------
--------------------------------------------------------
Net assets applicable to outstanding Class A shares $ 604,332 $ 2,117,280 $ 1,084,103 $ 10,010
--------------------------------------------------------
--------------------------------------------------------
Net assets applicable to outstanding Class B shares $ 189,330 $ 3,785,969 $ 2,297,759 $ 10,010
--------------------------------------------------------
--------------------------------------------------------
Net assets applicable to outstanding Class C shares $ 79,593 $ 1,518,720 $ 427,490 $ 10,010
--------------------------------------------------------
--------------------------------------------------------
Net assets applicable to outstanding Class I shares $80,963,652 $11,772,944 $ 3,972,736 $ 970,010
--------------------------------------------------------
--------------------------------------------------------
SHARES OUTSTANDING AND NET ASSET VALUE PER SHARE
- ----------------------------------------------------------------------------------------------------------------------------------
Class A shares of capital stock outstanding:
42,560, 161,777, 98,307 and 1,001, respectively $14.20 $13.09 $11.03 $10.00
--------------------------------------------------------
--------------------------------------------------------
Class B shares of capital stock outstanding:
13,536, 293,588, 210,034 and 1,001, respectively $13.99 $12.90 $10.94 $10.00
--------------------------------------------------------
--------------------------------------------------------
Class C shares of capital stock outstanding:
5,698, 117,915, 39,107 and 1,001, respectively $13.97 $12.88 $10.93 $10.00
--------------------------------------------------------
--------------------------------------------------------
Class I shares of capital stock outstanding:
5,668,185, 888,420, 359,196 and 97,001, respectively $14.28 $13.25 $11.06 $10.00
--------------------------------------------------------
--------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
See accompanying notes to financial statements.
19
<PAGE>
FINANCIAL STATEMENTS (CONTINUED) December 31, 1997
- --------------------------------------------------------------------------------
STATEMENTS OF OPERATIONS
<TABLE>
<CAPTION>
Jundt Jundt U.S. Emerging Jundt
For the year ended 12/31/97 Growth Fund Growth Fund Opportunity Fund
- -----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
INCOME
- -----------------------------------------------------------------------------------------------------------------------------
Interest $ 381,084 $ 148,160 $ 25,647
Dividends 264,399 1,914 8,323
---------------------------------------------------------
645,483 150,074 33,970
---------------------------------------------------------
EXPENSES (note 4)
- -----------------------------------------------------------------------------------------------------------------------------
Investment management fee 906,945 163,666 61,941
Transfer agent fee 265,335 130,483 64,666
Administrative fee 181,389 32,733 9,529
Legal fees 88,270 34,155 11,368
Reports to shareholders 67,795 11,284 1,383
Directors' fees 63,075 10,680 6,663
Registration fee 58,595 47,689 50,362
Audit fees 57,119 6,347 10,884
Custodian fee 29,268 19,559 15,336
Amortization of deferred organization costs -- 17,345 56,638
Account maintenance fee:
Class A 1,174 4,219 1,357
Class B 237 6,438 2,000
Class C 40 4,282 581
Distribution fee:
Class B 709 19,313 5,998
Class C 120 12,846 1,742
Other 35,435 33,062 12,519
---------------------------------------------------------
Total expenses before interest expense
and reimbursement 1,755,506 554,101 312,967
Interest expense (note 5) -- -- 15,645
Reimbursement of expenses -- (253,321) (211,036)
---------------------------------------------------------
Expenses after interest expense and reimbursement 1,755,506 300,780 117,576
---------------------------------------------------------
Net investment loss (1,110,023) (150,706) (83,606)
---------------------------------------------------------
NET REALIZED AND UNREALIZED GAIN (LOSS)
ON INVESTMENTS
- -----------------------------------------------------------------------------------------------------------------------------
Net realized gain on investments and futures
transactions (note 3) 8,023,453 4,679,699 1,467,120
Net realized gain on short sale transactions (note 3) -- -- 30,942
Net realized gain on investments, futures ---------------------------------------------------------
transactions and short sale transactions 8,023,453 4,679,699 1,498,062
Net change in unrealized appreciation (depreciation)
on investments 2,470,376 100,400 (44,463)
---------------------------------------------------------
Net gain on investments 10,493,829 4,780,099 1,453,599
---------------------------------------------------------
Net increase in net assets resulting from operations $ 9,383,806 $ 4,629,393 $ 1,369,993
---------------------------------------------------------
---------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------------------------
</TABLE>
See accompanying notes to financial statements.
20
<PAGE>
FINANCIAL STATEMENTS (CONTINUED) December 31, 1997
- --------------------------------------------------------------------------------
STATEMENT OF CASH FLOWS
<TABLE>
<CAPTION>
Jundt
For the year ended 12/31/97 Opportunity Fund
- --------------------------------------------------------------------------------
INCREASE (DECREASE) IN CASH
- --------------------------------------------------------------------------------
<S> <C>
Cash flows used for operating activities
Dividends and interest received $ 30,935
Operating expenses paid (207,819)
Organization and offering expenses paid (90,637)
Reimbursement from investment adviser 211,151
Interest paid (15,411)
Purchases of short-term investments, net (568,533)
Purchases of long-term investments (18,604,747)
Proceeds from sales of long-term investments 12,858,607
Proceeds from short sale transactions 1,903,230
Purchases to close short sale transactions (1,872,288)
Net cash provided by futures transactions 11,489
----------------
Net cash used for operating activities (6,344,023)
----------------
Cash flows provided by financing activities
Net capital share transactions 6,393,664
Distributions paid (160,409)
Proceeds from borrowings 4,123,700
Repayment of borrowings (4,123,700)
----------------
Net cash provided by financing activities 6,233,255
----------------
Net decrease in cash (110,768)
Cash at beginning of year 112,306
----------------
Cash at end of year $ 1,538
----------------
RECONCILIATION OF NET DECREASE IN NET ASSETS FROM OPERATIONS
TO NET CASH USED FOR OPERATING ACTIVITIES
- --------------------------------------------------------------------------------
Net increase in net assets resulting from operations $ 1,369,993
----------------
Increase in investments (6,253,931)
Net realized gain on investments and futures transactions (1,467,120)
Net realized gain on short sale transactions (30,942)
Net change in unrealized depreciation on investments 44,463
Net cash provided by futures transactions 11,489
Increase in dividends and accrued interest receivable (3,035)
Decrease in receivable from investment adviser 115
Increase in other assets (5,333)
Decrease in payable for securities purchased (29,800)
Increase in interest payable 234
Increase in accrued expenses and other liabilities 19,844
----------------
Total adjustments (7,714,016)
----------------
Net cash used for operating activities $ (6,344,023)
----------------
----------------
- --------------------------------------------------------------------------------
</TABLE>
See accompanying notes to financial statements.
21
<PAGE>
FINANCIAL STATEMENTS (CONTINUED)
- --------------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
Jundt Growth Fund
---------------------------------
Year ended Year ended
12/31/97 12/31/96
- -----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
OPERATIONS
- -----------------------------------------------------------------------------------------------------------------------------
Net investment loss $ (1,110,023) $ (1,644,515)
Net realized gain (loss) on investments, futures transactions
and short sale transactions 8,023,453 (3,183,866)
Net change in unrealized appreciation (depreciation) on investments 2,470,376 18,490,415
---------------------------------
Net increase (decrease) in net assets resulting from operations 9,383,806 13,662,034
---------------------------------
DISTRIBUTIONS TO SHAREHOLDERS
- -----------------------------------------------------------------------------------------------------------------------------
Realized capital gains-net (4,654,856) (564,175)
---------------------------------
CAPITAL SHARE TRANSACTIONS
- -----------------------------------------------------------------------------------------------------------------------------
Net proceeds from shares sold:
Class A shares 370,587 343,477
Class B shares 206,044 41,423
Class C shares 75,777 1,058
Class I shares 624,608 6,424,907
Distributions reinvested:
Class A shares 26,802 1,684
Class B shares 9,539 7
Class C shares 1,574 7
Class I shares 3,135,404 90,076
Cost of shares redeemed:
Class A shares (133,803) (24,053)
Class B shares (60,621) (10,397)
Class C shares -- --
Class I shares (23,984,987) (63,771,073)
---------------------------------
Net increase (decrease)
in net assets from capital
share transactions (19,729,076) (56,902,884)
---------------------------------
NET ASSETS
- -----------------------------------------------------------------------------------------------------------------------------
Total increase (decrease) in net assets (15,000,126) (43,805,025)
Net assets at beginning of period 96,837,033 140,642,058
---------------------------------
Net assets at end of period $ 81,836,907 $ 96,837,033
---------------------------------
---------------------------------
- -----------------------------------------------------------------------------------------------------------------------------
</TABLE>
* Commencement of investment operations.
See accompanying notes to financial statements.
22
<PAGE>
December 31, 1997
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Jundt U.S. Emerging Growth Fund Jundt Opportunity Fund
------------------------------------------------------------------
Period from Period from
Year Ended 1/2/96* Year ended 12/26/96*
12/31/97 to 12/31/96 12/31/97 to 12/31/96
- ----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
OPERATIONS
- ----------------------------------------------------------------------------------------------------------------------------------
Net investment loss $ (150,706) $ (144,784) $ (83,606) $ (108)
Net realized gain (loss) on investments, futures
transactions and short sale transactions 4,679,699 1,574,974 1,498,062 --
Net change in unrealized appreciation (depreciation)
on investments 100,400 1,357,802 (44,463) (5,063)
------------------------------------------------------------------
Net increase (decrease) in net assets resulting
from operations 4,629,393 2,787,992 1,369,993 (5,171)
------------------------------------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS
- ----------------------------------------------------------------------------------------------------------------------------------
Realized capital gains-net (3,890,930) (1,862,519) (1,581,765) --
------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS
- ----------------------------------------------------------------------------------------------------------------------------------
Net proceeds from shares sold:
Class A shares 958,365 2,926,089 877,406 113,086
Class B shares 1,851,712 1,761,699 2,322,887 1,070
Class C shares 552,081 2,033,013 402,101 1,080
Class I shares 610,384 8,657,503 3,572,825 290,070
Distributions reinvested:
Class A shares 287,832 175,743 200,988 --
Class B shares 740,993 140,248 422,132 --
Class C shares 309,113 75,849 81,151 --
Class I shares 2,200,213 303,212 717,064 --
Cost of shares redeemed:
Class A shares (402,649) (2,007,745) (34,953) --
Class B shares (373,611) (25,044) (55,497) --
Class C shares (1,301,365) (314,960) (25,337) --
Class I shares (751,255) (976,443) (887,042) --
------------------------------------------------------------------
Net increase (decrease)
in net assets from capital
share transactions 4,681,813 12,749,164 7,593,725 405,306
------------------------------------------------------------------
NET ASSETS
- ----------------------------------------------------------------------------------------------------------------------------------
Total increase (decrease) in net assets 5,420,276 13,674,637 7,381,953 400,135
Net assets at beginning of period 13,774,637 100,000 400,135 --
------------------------------------------------------------------
Net assets at end of period $19,194,913 $13,774,637 $ 7,782,088 $ 400,135
------------------------------------------------------------------
------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
23
<PAGE>
FINANCIAL STATEMENTS (CONCLUDED)
- --------------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS (CONCLUDED)
<TABLE>
<CAPTION>
Jundt Growth Fund
---------------------------------
Year ended Year ended
12/31/97 12/31/96
- -----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
CAPITAL SHARE TRANSACTIONS
- -----------------------------------------------------------------------------------------------------------------------------
Shares sold:
Class A shares 25,010 26,465
Class B shares 14,104 3,403
Class C shares 5,410 83
Class I shares 43,234 523,768
Shares issued for dividends reinvested:
Class A shares 1,997 122
Class B shares 721 1
Class C shares 120 1
Class I shares 232,252 6,532
Shares redeemed:
Class A shares (9,331) (1,787)
Class B shares (4,036) (740)
Class C shares -- --
Class I shares (1,655,398) (5,248,054)
---------------------------------
Net increase (decrease) in shares outstanding (1,345,917) (4,690,206)
---------------------------------
---------------------------------
- -----------------------------------------------------------------------------------------------------------------------------
</TABLE>
*Commencement of investment operations.
See accompanying notes to financial statements.
24
<PAGE>
December 31, 1997
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
JUNDT U.S. EMERGING GROWTH FUND JUNDT OPPORTUNITY FUND
-----------------------------------------------------------------------------
YEAR ENDED PERIOD FROM YEAR ENDED PERIOD FROM
12/31/97 1/2/96* TO 12/31/96 12/31/97 12/26/96* TO 12/31/96
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
CAPITAL SHARE TRANSACTIONS
- -----------------------------------------------------------------------------------------------------------------------------------
Shares sold:
Class A shares 63,886 239,635 70,697 11,309
Class B shares 120,487 128,454 173,963 107
Class C shares 37,559 159,854 33,112 108
Class I shares 43,886 751,525 326,742 29,007
Shares issued for dividends reinvested:
Class A shares 23,212 14,253 18,926 --
Class B shares 60,638 11,420 40,088 --
Class C shares 25,337 6,187 7,707 --
Class I shares 175,316 24,433 67,330 --
Shares redeemed:
Class A shares (28,016) (151,293) (2,625) --
Class B shares (25,701) (1,810) (4,124) --
Class C shares (87,924) (23,198) (1,820) --
Class I shares (52,145) (64,295) (63,883) --
-----------------------------------------------------------------------------
Net increase (decrease) in shares outstanding 356,535 1,095,165 666,113 40,531
-----------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
25
<PAGE>
NOTES TO FINANCIAL STATEMENTS December 31, 1997
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. The only transaction of U.S. Emerging
Growth Fund prior to commencement of investment operations was the sale of 100
shares of each Class A, Class B and Class C and 9,700 shares of Class I to a
principal of Jundt Associates, Inc. (the "Adviser") for $100,000 ($10 per
share). 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, had not commenced investment operations as of December 31, 1997. The
only transactions of Twenty-Five Fund as of December 31, 1997 were the sale of
shares to a principal of the Adviser. Accordingly, statements of operations and
changes in net assets and financial highlights have not been presented.
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.
26
<PAGE>
NOTES TO FINANCIAL STATEMENTS (CONTINUED) December 31, 1997
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 contracts sales are valued using the closing settlement price
or, in the absence of such a price, the most recently quoted asked price. Other
securities for which market quotations are not readily available are valued at
fair value in good faith by or under the direction of the Board of Directors.
Short-term securities with maturities of fewer than 60 days when acquired, or
which subsequently are within 60 days of maturity, are valued at amortized cost,
which approximates market value.
Security transactions are accounted for on the date the securities are purchased
or sold. Realized gains and losses are calculated on the identified cost basis.
Dividend income is recognized on the ex-dividend date. Interest income,
including level-yield amortization of discount, is accrued daily.
FEDERAL TAXES
The funds intend to comply with the requirements of the Internal Revenue Code
applicable to regulated investment companies and also intend to distribute all
of their investment company taxable income to shareholders. Therefore, no income
tax provision is required. In addition, on a calendar year basis, the funds will
make sufficient distributions of their net investment income and realized gains,
if any, to avoid the payment of any federal excise taxes.
Net investment income (loss) and net realized gains (losses) may differ for
financial statement and tax purposes primarily due to wash sales and net
operating losses. The character of distributions made during the period from net
investment income or net realized gains, if any, may differ from their ultimate
characterization for federal income tax purposes. Also, due to the timing of
dividend distributions, the period in which amounts are distributed may differ
from the year the income or realized gains (losses) were recorded by the funds.
On the statement of assets and liabilities, as a result of permanent book-to-tax
differences, the following reclassifications were made.
Growth Fund--accumulated net investment loss has been decreased by $1,110,023,
resulting in a reclassification adjustment to decrease paid-in capital by
$1,110,023; U.S. Emerging Growth Fund--accumulated net investment loss has been
decreased by $106,871, and accumulated net realized gain on investments has been
decreased by $95,324, resulting in a reclassification adjustment to decrease
paid-in capital by $11,547; Opportunity Fund--accumulated net investment loss
has been decreased by $45,850, and accumulated net realized loss on investments
has been increased by $12,611, resulting in a reclassification adjustment to
decrease paid-in capital by $33,239. These reclassifications have no effect on
net assets or net asset value per share.
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
27
<PAGE>
NOTES TO FINANCIAL STATEMENTS (CONTINUED) December 31, 1997
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, 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. As of December 31, 1997, 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 year ended December 31, 1997 for Growth Fund, U.S. Emerging Growth Fund
and Opportunity Fund, the cost
28
<PAGE>
NOTES TO FINANCIAL STATEMENTS (CONTINUED) December 31, 1997
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 $96,867,844 $119,973,931
U.S. Emerging
Growth Fund $35,640,433 $ 36,775,588
Opportunity Fund
Long-term investment transactions $18,574,947 $ 12,858,607
Short sale transactions $ 1,872,288 $ 1,903,230
- --------------------------------------------------------------------------------
</TABLE>
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 reimburse 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.
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 not exceeding $600,000,000 and 0.175% of
each fund's average daily net assets in excess of $600,000,000, subject to an
annual minimum fee of $125,000 for each fund (except Twenty-Five Fund, whose
annual minimum is $40,000). For the period ended December 31, 1996 and for the
year ended December 31, 1997, the Administrator has agreed to waive the annual
minimum fee provision for U.S. Emerging Growth Fund 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 $65,616 for the year ended December 31, 1997 for Growth Fund,
$21,950 for U.S. Emerging Growth Fund and $8,558 for Opportunity 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 December 31, 1997, Opportunity Fund had no loans
outstanding. For the year ended December 31, 1997, the average daily amount of
the loan outstanding was $499,553 at a weighted average interest rate of 8.50%.
The maximum amount of the loan outstanding at any time during the period was
$1,081,137, or 13.6% of total assets. The loan was collateralized by certain
Opportunity Fund investments.
29
<PAGE>
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
6. FINANCIAL HIGHLIGHTS -- GROWTH FUND
Per share data for a share of capital stock outstanding throughout each period
and selected supplemental data and ratio information for each period indicated
are as follows. (For periods prior to December 31, 1995, the Fund operated as a
closed-end investment company.)
<TABLE>
<CAPTION>
YEAR ENDED 12/31/97
--------------------------------------------
PER SHARE DATA CLASS A CLASS B CLASS C CLASS I
- -------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Net asset value, beginning of period $13.64 $13.56 $13.54 $13.69
--------------------------------------------
Operations:
Investment loss-net (0.23) (0.32) (0.30) (0.19)
Net realized and unrealized gain (loss) on
investments and futures transactions 1.64 1.60 1.58 1.63
--------------------------------------------
Total from operations 1.41 1.28 1.28 1.44
Distributions to shareholders:
From investment income-net -- -- -- --
From realized capital gains-net (0.85) (0.85) (0.85) (0.85)
Tax return of capital -- -- -- --
--------------------------------------------
Net asset value, end of period $14.20 $13.99 $13.97 $14.28
--------------------------------------------
--------------------------------------------
Total investment return (1) 10.67% 9.77% 9.82% 10.85%
Net assets at end of period (000s omitted) $604 $189 $80 $80,964
Ratio of expenses to average net assets 2.18% 2.93% 2.93% 1.93%
Ratio of net investment loss to average net assets (1.49)% (2.28)% (2.32)% (1.22)%
Portfolio turnover rate (excluding short-term
securities) 115% 115% 115% 115%
Average commission per share (3) $0.0600 $0.0600 $0.0600 $0.0600
- -------------------------------------------------------------------------------------------------
</TABLE>
(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 (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.
(2) Adjusted to an annual basis.
(3) For fiscal years beginning in 1996, the Growth Fund is required to disclose
its average commission rate paid per share for purchases and sales of
investment securities subject to a commission.
30
<PAGE>
DECEMBER 31, 1997
<TABLE>
<CAPTION>
YEAR ENDED 12/31/96
---------------------------------------------
CLASS A CLASS B CLASS C CLASS I
- --------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Net asset value, beginning of period $11.95 $11.95 $ 11.95 $11.95
---------------------------------------------
Operations:
Investment loss-net (0.26) (0.36) (0.36) (0.23)
Net realized and unrealized gain (loss) on
investments and futures transactions 2.03 2.05 2.03 2.05
---------------------------------------------
Total from operations 1.77 1.69 1.67 1.82
Distributions to shareholders:
From investment income-net -- -- -- --
From realized capital gains-net (0.08) (0.08) (0.08) (0.08)
Tax return of capital -- -- -- --
---------------------------------------------
Net asset value, end of period $13.64 $13.56 $ 13.54 $13.69
---------------------------------------------
---------------------------------------------
Total investment return (1) 14.81% 14.14% 13.97% 15.22%
Net assets at end of period (000s omitted) $340 $37 $2 $96,458
Ratio of expenses to average net assets 2.13% 2.88% 2.88% 1.88%
Ratio of net investment loss to average net assets (1.81)% (2.53)% (2.49)% (1.56)%
Portfolio turnover rate (excluding short-term
securities) 57% 57% 57% 57%
Average commission per share (3) $0.0599 $0.0599 $0.0599 $0.0599
- --------------------------------------------------------------------------------------------------
<CAPTION>
PERIOD FROM
YEAR ENDED 7/1/94 YEAR ENDED YEAR ENDED
12/31/95 TO 12/31/94 6/30/94 6/30/93
- ------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Net asset value, beginning of period $14.95 $13.53 $15.10 $13.78
-------------------------------------------------
Operations:
Investment loss-net (0.12) (0.07) (0.11) (0.05)
Net realized and unrealized gain (loss) on
investments and futures transactions 2.71 1.83 (0.57) 1.38
-------------------------------------------------
Total from operations 2.59 1.76 (0.68) 1.33
Distributions to shareholders:
From investment income-net -- -- -- (0.01)
From realized capital gains-net (5.59) -- (0.52) --
Tax return of capital -- (0.34) (0.37) --
-------------------------------------------------
Net asset value, end of period $11.95 $14.95 $13.53 $15.10
-------------------------------------------------
-------------------------------------------------
Total investment return (1) 17.81% 13.06% (4.53)% 9.64%
Net assets at end of period (000s omitted) $140,642 $223,317 $202,192 $473,768
Ratio of expenses to average net assets 1.60% 1.58% (2) 1.55% 1.40%
Ratio of net investment loss to average net assets (0.72)% (0.98)% (2) (0.63)% (0.36)%
Portfolio turnover rate (excluding short-term
securities) 155% 19% 70% 66%
Average commission per share (3) N/A N/A N/A N/A
- ------------------------------------------------------------------------------------------------------
</TABLE>
31
<PAGE>
NOTES TO FINANCIAL STATEMENTS (CONTINUED) DECEMBER 31, 1997
6. FINANCIAL HIGHLIGHTS -- U.S. EMERGING GROWTH FUND
Per share data for a share of capital stock outstanding throughout each period
and selected supplemental data and ratio information for each period indicated
are as follows:
<TABLE>
<CAPTION>
YEAR ENDED 12/31/97 PERIOD FROM 1/2/96* TO 12/31/96
-------------------------------------------------------------------------------------------
PER SHARE DATA CLASS A CLASS B CLASS C CLASS I CLASS A CLASS B CLASS C CLASS I
- --------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period $12.42 $12.37 $12.36 $12.51 $10.00 $10.00 $10.00 $10.00
------------------------------------------------------------------------------------------
Operations:
Investment loss-net (0.11) (0.21) (0.21) (0.07) (0.14) (0.24) (0.24) (0.11)
Net realized and unrealized
gain on investments and
futures transactions 4.09 4.05 4.04 4.12 4.47 4.52 4.51 4.53
------------------------------------------------------------------------------------------
Total from operations 3.98 3.84 3.83 4.05 4.33 4.28 4.27 4.42
Distributions to shareholders:
From realized capital gains-net (3.31) (3.31) (3.31) (3.31) (1.91) (1.91) (1.91) (1.91)
------------------------------------------------------------------------------------------
Net asset value, end of period $13.09 $12.90 $12.88 $13.25 $12.42 $12.37 $12.36 $12.51
------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------
Total investment return (1) 33.54% 32.55% 32.50% 33.87% 43.40% 42.90% 42.82% 44.32%
Net assets at end of period
(000s omitted) $2,117 $3,786 $1,519 $11,773 $1,275 $1,709 $1,766 $9,025
Ratio of expenses, before
reimbursement, to
average net assets 3.35% 4.10% 4.10% 3.10% 3.83%(2) 3.62%(2) 4.32%(2) 3.44%(2)
Ratio of expenses, net of
reimbursement, to
average net assets 1.80% 2.55% 2.55% 1.55% 1.80%(2) 2.55%(2) 2.55%(2) 1.55%(2)
Ratio of net investment loss
to average net assets (0.88)% (1.63)% (1.63)% (0.63)% (1.36)%(2) (2.15)%(2) (2.13)%(2) (1.09)%(2)
Portfolio turnover rate
(excluding short-term securities) 264% 264% 264% 264% 204% 204% 204% 204%
Average commission per share $0.0600 $0.0600 $0.0600 $0.0600 $0.0600 $0.0600 $0.0600 $0.0600
- --------------------------------------------------------------------------------------------------------------------------------
</TABLE>
*Commencement of investment 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.
32
<PAGE>
NOTES TO FINANCIAL STATEMENTS (CONCLUDED) December 31, 1997
6. FINANCIAL HIGHLIGHTS -- OPPORTUNITY FUND
Per share data for a share of capital stock outstanding throughout each period
and selected supplemental data and ratio information for each period indicated
are as follows:
<TABLE>
<CAPTION>
YEAR ENDED 12/31/97 PERIOD FROM 12/26/96* TO 12/31/96
------------------------------------------- -------------------------------------------
PER SHARE DATA CLASS A CLASS B CLASS C CLASS I CLASS A CLASS B CLASS C CLASS I
- ---------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period $9.87 $9.87 $9.87 $9.87 $10.00 $10.00 $10.00 $10.00
-------------------------------------------------------------------------------------------
Operations:
Investment loss-net (0.17) (0.26) (0.25) (0.14) -- -- -- --
Net realized and unrealized gain
(loss) on investments, futures
transactions and short
sale transactions 4.12 4.12 4.10 4.12 (0.13) (0.13) (0.13) (0.13)
-------------------------------------------------------------------------------------------
Total from operations 3.95 3.86 3.85 3.98 (0.13) (0.13) (0.13) (0.13)
Distributions to shareholders:
From realized capital gains-net (2.79) (2.79) (2.79) (2.79) -- -- -- --
-------------------------------------------------------------------------------------------
Net asset value, end of period $11.03 $10.94 $10.93 $11.06 $9.87 $9.87 $9.87 $9.87
-------------------------------------------------------------------------------------------
-------------------------------------------------------------------------------------------
Total investment return (1) 41.15% 40.25% 40.12% 41.45% (1.30)% (1.30)% (1.30)% (1.30)%
Net assets at end of period
(000s omitted) $1,084 $2,298 $427 $3,973 $112 $1 $1 $286
Ratio of expenses, before
reimbursement, to
average net assets 6.85% 7.50% 7.63% 6.70% 4.23%(2) 4.98%(2) 4.98%(2) 3.98%(2)
Ratio of expenses, excluding
interest expense, to
average net assets 6.57% 7.32% 7.32% 6.32% 4.23%(2) 4.98%(2) 4.98%(2) 3.98%(2)
Ratio of expenses, net of
reimbursement and excluding
interest expense, to average
net assets 2.14% 2.89% 2.89% 1.89% 2.14%(2) 2.89%(2) 2.89%(2) 1.89%(2)
Ratio of net investment loss
to average net assets (1.71)% (2.36)% (2.49)% (1.56)% (2.14)%(2) (2.98)%(2) (3.02)%(2) (1.89)%(2)
Portfolio turnover rate
(excluding short-term securities) 298% 298% 298% 298% 0% 0% 0% 0%
Average commission per share (3) $0.0600 $0.0600 $0.0600 $0.0600 N/A N/A N/A N/A
- ---------------------------------------------------------------------------------------------------------------------------------
</TABLE>
*Commencement of investment 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 fiscal year ended December 31, 1996, the Opportunity Fund did not
incur commissions as a result of securities being purchased in the over-
the-counter market.
33
<PAGE>
INDEPENDENT AUDITORS' REPORT
THE BOARD OF DIRECTORS AND SHAREHOLDERS
The Jundt Growth Fund, Inc., and Jundt Funds, Inc.:
We have audited the accompanying statements of assets and liabilities, including
the schedules of investments, of The Jundt Growth Fund, Inc. and Jundt U.S.
Emerging Growth Fund and Jundt Opportunity Fund (funds within Jundt Funds, Inc.)
as of December 31, 1997 and the related statements of operations for the year
then ended, statements of changes in net assets for the years ended December 31,
1997 and 1996 for Jundt Growth Fund, Inc., and the year ended December 31, 1997
and the period from January 2, 1996 (commencement of investment operations) to
December 31, 1996 for Jundt U.S. Emerging Growth Fund and the year ended
December 31, 1997 and the period from December 26, 1996 (commencement of
investment operations) to December 31, 1996 for Jundt Opportunity Fund and
financial highlights for the periods presented in note 6 to the financial
statements. We have also audited the statement of assets and liabilities of
Jundt Twenty-Five Fund, also a fund within Jundt Funds, Inc., as of December 31,
1997. These financial statements and financial highlights are the responsibility
of the funds' management. Our responsibility is to express an opinion on these
financial statements and financial highlights based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements and financial
highlights are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements and financial highlights. Investment securities held in custody are
confirmed to us by the custodian. As to securities purchased and sold, but not
received or delivered, we request confirmations from brokers and, where replies
are not received, we carry out other appropriate procedures. An audit also
includes assessing the accounting principles used and significant estimates made
by management, as well as evaluating the overall financial statement
presentation. We believe that our audits provide a reasonable basis for our
opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of The
Jundt Growth Fund, Inc., Jundt U.S. Emerging Growth Fund, Jundt Opportunity Fund
and Jundt Twenty-Five Fund as of December 31, 1997, the results of their
operations, changes in their net assets and financial highlights for the periods
stated in the first paragraph above in conformity with generally accepted
accounting principles.
KPMG Peat Marwick LLP
Boston, Massachusetts
January 30, 1998
34
<PAGE>
FEDERAL TAX INFORMATION (UNAUDITED)
Information for federal income tax purposes is presented as an aid to
shareholders in reporting the dividend distributions for the year ended December
31, 1997, shown below. Shareholders should consult a tax adviser on how to
report these distributions for federal and state income tax purposes.
Per share distributions are as follows (distributions of short-term capital
gains are included in ordinary income):
<TABLE>
<CAPTION>
RECORD PAYABLE ORDINARY LONG-TERM
DATE DATE INCOME CAPITAL GAINS*
- ----------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Growth Fund 12/22/97 12/31/97 $0.00 $0.846060
U.S. Emerging Growth Fund 12/22/97 12/31/97 $2.464190 $0.847770
Opportunity Fund 12/22/97 12/31/97 $2.632060 $0.161820
</TABLE>
*Of the long-term capital gains distributions paid by Growth Fund, U.S. Emerging
Growth Fund and Opportunity Fund in 1997, 12.23%, 52.82% and 100%, respectively,
are subject to a 20% tax rate; 87.77%, 47.18% and 0%, respectively, are subject
to a 28% tax rate.
35
<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
INDEPENDENT AUDITORS
KPMG Peat Marwick LLP
99 High Street
Boston, MA 02110
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 AND JUNDT OPPORTUNITY FUND
REFLECTS THE VOLUNTARY PAYMENT OR REIMBURSEMENT BY JUNDT ASSOCIATES, INC., EACH
FUND'S INVESTMENT ADVISER, OF CERTAIN FEES AND EXPENSES.
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.