<PAGE>
[LOGO]
JUNDT
GROWTH FUND
JUNDT
U.S. EMERGING
GROWTH FUND
JUNDT
OPPORTUNITY FUND
JUNDT
TWENTY-FIVE FUND
ANNUAL REPORT
DECEMBER 31, 1998
SEARCHING TODAY FOR THE GENIUSES OF TOMORROW-SM-
<PAGE>
LETTER TO SHAREHOLDERS
DEAR SHAREHOLDER,
With the close of 1998, it is time to review what has been a very tumultuous
year in the stock market. Fortunately, for the shareholders of the Jundt Funds,
it was a year of above-average returns despite the market's volatility. With
only 17%* of all actively managed mutual funds outperforming the S&P 500 Index
total return of 28.76% in 1998, we are happy that shareholders in all of the
Jundt Funds experienced above-market returns for the year. The annual returns
for 1998 for the Jundt Funds and the Funds' comparable benchmarks are stated
below.
<TABLE>
<S> <C>
JUNDT GROWTH FUND 43.30%**
S&P 500 Index 28.76
Lipper Growth Fund Index 25.69
JUNDT U.S. EMERGING GROWTH FUND 39.06%**
S&P 500 Index 28.76
Lipper Small Cap Growth Fund Index -0.85
JUNDT OPPORTUNITY FUND 61.29%**
S&P 500 Index 28.76
Lipper Capital Appreciation Fund Index 19.98
JUNDT TWENTY-FIVE FUND 75.43%**
S&P 500 Index 28.76
Lipper Capital Appreciation Fund Index 19.98
</TABLE>
The highlight, or more appropriately, the low point of the year, was the
precipitous drop in the market during the third quarter. Dropping from a high of
9,337 on July 17, the Dow Jones Industrial Average fell 19% following a 512
point loss on August 31 to bottom-out at 7,539 in September. Amazingly, the Dow
made a complete recovery in the fourth quarter, reaching a new all-time high of
9,374 on November 23.
A distinguishing characteristic of the Jundt Funds is our ability to hedge in
all of the Funds. Hedging is an investment strategy designed to reduce the
market risk in a portfolio. While the average stock mutual fund was down by
almost 15.02 %*** during the third quarter correction, all four of the Jundt
Funds outperformed the average fund. The total returns for the third quarter for
Jundt Growth Fund, Jundt U.S. Emerging Growth Fund, Jundt Opportunity Fund and
Jundt Twenty-Five Fund were -3.96%,** +0.14%,** +7.96%** and +11.22%,**
respectively. This above-average performance is partially attributable to the
hedging employed in the Funds.
JUNDT GROWTH FUND
The Jundt Growth Fund, our large cap growth fund, gained 43.30%** for calendar
year 1998. The Fund generally consists of 30 to 50 growth companies, at least
half of which have annual sales of at least $750 million and at least 15% per
annum revenue growth. In fact, at the end of the year, the portfolio was
generating 32% annual top-line revenue growth versus 7% annual revenue growth
for the S&P 500 Index of companies.
While the average stock fund lost 15.02%*** of its value during the third
quarter, the Jundt Growth Fund was down only 3.96%.** The Fund's superior
performance during the third quarter can be attributed to the strategy of
hedging via futures. The hedged position reduced the market risk in the
portfolio.
In the fourth quarter, as the market reacted positively to the Federal Reserve's
interest rate cuts, the hedge was removed which allowed the Jundt Growth Fund to
realize a 24.32%** gain over the last three months of 1998.
1
<PAGE>
LETTER TO SHAREHOLDERS (CONTINUED)
JUNDT U.S. EMERGING GROWTH FUND
The end of 1998 represented the third year of operations for the Jundt U.S.
Emerging Growth Fund. The Fund's cumulative, compounded return since inception
(January 2, 1996) through December 31, 1998, is 168.66%.** This ranks the Jundt
U.S. Emerging Growth Fund in the top 1% of the Fund's category for the three
years ended December 31, 1998, according to Morningstar, Inc. For the same time
period, the Fund received a five star (*****) rating, the highest rating a fund
can receive, from Morningstar, Inc.
For the year ended December 31, 1998, the Jundt U.S. Emerging Growth Fund
advanced 39.06%,** which placed the Fund as the 5th ranked small cap growth fund
for the period.*** The Fund outperformed both the Russell 2000 Growth Index
return of 1.23% and the Lipper Small Cap Growth Fund Index return of -0.85%.
Similar to the other Jundt Funds, the Jundt U.S. Emerging Growth Fund has the
investment flexibility to preserve capital in down markets by hedging. We
accomplished this objective by selling short Russell 2000 Index futures. This
strategy enabled the Fund to gain 0.14%** in the third quarter, the only small
cap fund in the country that did not lose value in the third quarter.
The Jundt U.S. Emerging Growth Fund generally consists of 30 to 50 stocks, at
least half of which have annual sales of less than $750 million and top line
revenue growth of at least 25%. At the end of the year, the Fund had about 86%
of its portfolio invested in companies with less than $250 million of annual
sales. While the trend over the last three years has favored the larger
companies found in the S&P 500 Index, we believe the Jundt U.S. Emerging Growth
Fund is positioned to participate in a small stock rally, if one occurs.
JUNDT OPPORTUNITY FUND
The Jundt Opportunity Fund is especially suited for the volatility that
characterized the last half of 1998. While the strategy of the Fund, in normal
markets, is to own a blend of between 30 to 50 stocks otherwise owned in either
the Jundt Growth Fund or the Jundt U.S. Emerging Growth Fund, the Jundt
Opportunity Fund has the flexibility to not only hedge but also short individual
stocks.
During the volatile third quarter, the Jundt Opportunity Fund implemented a
defensive investment strategy by selling short S&P 500 Index futures and selling
short individual securities. The strategy enabled the Fund to gain 7.96%**
during the third quarter.
As the market decline bottomed out, the Jundt Opportunity Fund covered its short
positions and participated in the stock markets' rapid recovery. For the fourth
quarter, the Jundt Opportunity Fund appreciated in value 26.43%.** For the year
ended December 31, 1998, the Fund finished up 61.29%** placing the Fund as the
9th rated capital appreciation fund and the 38th rated fund of any kind.***
JUNDT TWENTY-FIVE FUND
The year ended December 31, 1998, represented the first full year of operations
for the Jundt Twenty-Five Fund. The investment strategy of the Fund is to own a
concentrated number of growth stocks, typically no more than 25, which are
culled from both the Jundt Growth Fund and the Jundt U.S. Emerging Growth Fund.
The Fund also has the ability to hedge the portfolio, which we did in the third
quarter.
2
<PAGE>
LETTER TO SHAREHOLDERS (CONTINUED)
During the third quarter, with the portfolio hedged by selling short S&P 500
Index futures, the Jundt Twenty-Five Fund gained 11.22%** which was the 6th
rated performance of any type of mutual fund.*** The Fund also participated in
the stock market rally as evidenced by the Fund's 20.41%** gain in the fourth
quarter. The Jundt Twenty-Five Fund posted a total return of 75.43%** for the
year ended December 31, 1998, which placed it as the 5th rated capital
appreciation fund and the 20th rated fund of any kind for the year.***
Predicting the economy is not a science, but if the economy's growth slows and
corporate profits are negatively impacted, we believe that investors may
continue to focus on growth stocks. Our investment discipline of owning top
line, revenue-focused growth stocks, could enable the Jundt Funds to outperform
the market again in 1999.
Effective in January 1999, Donald M. Longlet and Thomas L. Press, formerly part
of the portfolio management team of the Funds and the Adviser, resigned from the
Adviser.
Thank you for placing your confidence in Jundt Associates. We will continue to
manage your assets prudently and diligently.
Sincerely,
/s/ James R. Jundt
James R. Jundt
Chairman
*According to BUSINESS WEEK, February 1, 1999.
**Quoted Performance is for the Fund's Class I shares, which are not
available for public investment. Each Fund currently issues four share
classes, each subject to different sales charges and Rule 12b-1 fees.
Class I shares are not subject to sales charges or Rule 12b-1 fees.
Therefore, the performance of Class I shares will exceed that of each
Fund's other share classes.
***According to Lipper Analytical Services.
****Morningstar proprietary ratings reflect historical risk-adjusted
performance and are subject to change every month. Past performance is
no guarantee of future results. Ratings are calculated based on a fund's
3- and, if applicable, 5- and 10-year average annual returns in excess of
90-day Treasury bill returns with appropriate fee adjustments, and a risk
factor that reflects fund performance below 90-day Treasury bill returns.
The top ten percent of the funds in an investment category receive 5 stars.
The Fund's Class A, B and C shares received 5 stars for the overall and
3-year periods ended December 31, 1998, based on 2,802 domestic equity
funds in the investment category in each such period.
3
<PAGE>
JUNDT ASSOCIATES' APPROACH TO INVESTING: GROWTH FUND
JUNDT ASSOCIATES IS GROWTH-ORIENTED; OUR FOCUS IS ON COMPANIES GENERATING
significant revenue increases. We believe the U.S. economy's heterogeneous
nature and multi-trillion-dollar size generally afford investors significant
growth opportunities. We emphasize the fundamental prospects of individual
companies rather than macroeconomic trends.
The Growth Fund concentrates on medium- to large-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, 1998
(as a percentage of net assets)
[CHART]
<TABLE>
- --------------------------------------------------------------------------------
<S> <C>
Insurance 2.4%
Restaurants 3.2%
Computer Services/Software 8.2%
Internet Technology 11.8%
Computer Hardware 4.8%
Telecommunication Infrastructure 11.4%
Retail 15.0%
Wireless/Telecommunication Services 14.7%
Medical Devices/Drugs 21.5%
</TABLE>
4
<PAGE>
PERFORMANCE DATA: GROWTH FUND (UNAUDITED)
TOTAL RETURN BASED ON A $10,000 INVESTMENT
- --------------------------------------------------------------------------------
[GRAPH]
<TABLE>
<S> <C>
JUNDT GROWTH FUND(1) $25,186
(Class I shares without sales charge)*
JUNDT GROWTH FUND(1) $23,864
(Class I shares with sales charge)
RUSSELL 1000 INDEX(2) $37,179
LIPPER GROWTH FUND INDEX(3) $32,147
</TABLE>
AVERAGE ANNUAL TOTAL RETURNS (for periods ended December 31, 1998)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
- ----------------------------------------------------------------------------------
SINCE SINCE
1-YEAR 5-YEAR INCEPTION(4) INCEPTION(5)
- ----------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
JUNDT GROWTH CLASS A
Without sales charge* 42.90% -- -- 22.58%
With sales charge (a) 35.40 -- -- 20.40
- ----------------------------------------------------------------------------------
JUNDT GROWTH CLASS B
Without sales charge* 41.98 -- -- 21.75
With sales charge (b) 37.98 -- -- 21.07
- ----------------------------------------------------------------------------------
JUNDT GROWTH CLASS C
Without sales charge* 42.32 -- -- 21.80
With sales charge (c) 41.32 -- -- 21.80
- ----------------------------------------------------------------------------------
JUNDT GROWTH CLASS I
Without sales charge* 43.30 17.67% 13.43% --
With sales charge (a) 35.77 16.41 12.60 --
- ----------------------------------------------------------------------------------
RUSSELL 1000 INDEX 27.02 23.35 19.62 27.29
- ----------------------------------------------------------------------------------
LIPPER GROWTH FUND INDEX 25.69 19.82 17.26 23.67
- ----------------------------------------------------------------------------------
</TABLE>
*Applicable to investors who purchased shares at net asset value (without sales
charges), including Class I shareholders, at the time of the Fund's
conversion to an open-end fund on December 29, 1995.
(a) maximum initial sales charge of 5.25%.
(b) a contingent deferred sales charge of up to 4% will be imposed if shares are
redeemed within six years of purchase.
(c) a contingent deferred sales charge of 1% will be imposed if shares are
redeemed within one year of purchase.
(1)Total return is based on a hypothetical investment at the Fund's inception on
September 3, 1991. ACTUAL PERFORMANCE OF INVESTORS WILL VARY DEPENDING UPON THE
TIMING OF THEIR INVESTMENTS IN THE FUND. Total return assumes reinvestment of
all dividends and distributions. One line reflects total return with deduction
of the current maximum initial sales charge of 5.25%, and the other line
reflects total return without such charge. Total return prior to December 29,
1995, reflects the Fund's performance as a closed-end fund. As an open-end fund,
the Fund incurs certain additional expenses as a result of the continuous
offering and redemption of its shares. Since December 29, 1995, the Fund has
offered its shares in four classes (currently, Class A, B, C and I). Class A,
Class B and Class C performance will vary from Class I performance due to the
differences in sales charges and expenses applicable to an investment in each
such class.
(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.
5
<PAGE>
JUNDT GROWTH FUND
SCHEDULE OF INVESTMENTS DECEMBER 31, 1998
<TABLE>
<CAPTION>
COMMON STOCKS
Industry Description and Issue Number of Shares Cost Market Value (a)
- ------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
COMPUTER HARDWARE (4.8%)
- ------------------------------------------------------------------------------------------------------------------------
Dell Computer Corporation (b) 41,600 $ 1,597,650 $ 3,044,600
Intel Corporation 10,800 880,200 1,280,475
- ------------------------------------------------------------------------------------------------------------------------
2,477,850 4,325,075
----------------------------------
COMPUTER SERVICES/SOFTWARE (8.2%)
- ------------------------------------------------------------------------------------------------------------------------
Compuware Corporation (b) 31,900 1,642,988 2,492,188
Microsoft Corporation (b) 29,200 2,584,050 4,049,675
Parametric Technology Company (b) 53,300 878,075 866,125
----------------------------------
5,105,113 7,407,988
----------------------------------
INSURANCE (2.4%)
- ------------------------------------------------------------------------------------------------------------------------
The Progressive Corporation 12,700 1,457,856 2,151,063
----------------------------------
INTERNET TECHNOLOGY (11.8%)
- ------------------------------------------------------------------------------------------------------------------------
America Online, Inc. (b) 39,600 1,620,086 6,336,000
Intuit Inc. (b) 60,400 2,956,963 4,379,000
----------------------------------
4,577,049 10,715,000
----------------------------------
MEDICAL DEVICES/DRUGS (21.5%)
- ------------------------------------------------------------------------------------------------------------------------
Alza Corporation (b) 17,600 858,972 919,600
BioChem Pharma Inc. (b) 37,400 815,382 1,070,575
Centocor, Inc. (b) 28,100 974,038 1,268,013
Eli Lilly and Company 54,800 3,647,976 4,870,350
Medtronic, Inc. 13,600 747,966 1,009,800
Monsanto Company 21,200 880,487 1,007,000
Pfizer Inc. 28,700 2,231,976 3,600,056
Schering-Plough Corporation 31,600 1,626,443 1,745,900
Warner-Lambert Company 53,300 2,454,489 4,007,494
----------------------------------
14,237,729 19,498,788
----------------------------------
RESTAURANTS (3.2%)
- ------------------------------------------------------------------------------------------------------------------------
Starbucks Corp. (b) 51,900 2,205,372 2,912,888
----------------------------------
</TABLE>
See accompanying notes to schedule of investments. 6
<PAGE>
JUNDT GROWTH FUND
SCHEDULE OF INVESTMENTS (CONTINUED) DECEMBER 31, 1998
<TABLE>
<CAPTION>
COMMON STOCKS (CONCLUDED)
Industry Description and Issue Number of Shares Cost Market Value (a)
- ------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
RETAIL (15.0%)
- ------------------------------------------------------------------------------------------------------------------------
AutoZone, Inc. (b) 72,000 $ 2,264,443 $ 2,371,500
Bed, Bath & Beyond, Inc. (b) 34,400 592,351 1,173,900
Family Dollar Stores, Inc. 44,900 818,172 987,800
Kohl's Corporation (b) 15,900 873,428 976,856
Staples, Inc. (b) 52,993 685,631 2,315,132
The Home Depot, Inc. 94,648 1,493,400 5,791,275
----------------------------------
6,727,425 13,616,463
----------------------------------
TELECOMMUNICATION INFRASTRUCTURE (11.4%)
- ------------------------------------------------------------------------------------------------------------------------
ADC Telecommunications, Inc. (b) 29,100 710,874 1,011,225
Ascend Communications, Inc. (b) 40,500 1,922,557 2,662,875
Cisco Systems, Inc. (b) 39,300 1,728,365 3,647,531
Lucent Technologies, Inc. 10,700 737,944 1,177,000
Tellabs, Inc. (b) 26,500 1,493,784 1,816,906
----------------------------------
6,593,524 10,315,537
----------------------------------
WIRELESS/TELECOMMUNICATION SERVICES (14.7%)
- ------------------------------------------------------------------------------------------------------------------------
AirTouch Communications, Inc. (b) 43,600 1,811,510 3,144,650
Cablevision Systems Corporation (b) 39,900 1,572,953 2,002,480
MCI WorldCom, Inc. (b) 83,600 1,585,591 5,998,300
Nextel Communications, Inc. (b) 89,800 2,009,587 2,121,524
----------------------------------
6,979,641 13,266,954
----------------------------------
TOTAL COMMON STOCKS (93.0%) 50,361,559 84,209,756
----------------------------------
----------------------------------
</TABLE>
See accompanying notes to schedule of investments. 7
<PAGE>
JUNDT GROWTH FUND
SCHEDULE OF INVESTMENTS (CONCLUDED) DECEMBER 31, 1998
<TABLE>
<CAPTION>
SHORT-TERM SECURITIES
Issue Number of Shares Cost Market Value (a)
- ------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
MONEY MARKET FUND (7.5%)
- ------------------------------------------------------------------------------------------------------------------------
Norwest Treasury Fund, 4.10% (c) 6,743,678 $ 6,743,678 $ 6,743,678
----------------------------------
TOTAL SHORT-TERM SECURITIES (7.5%) 6,743,678 6,743,678
----------------------------------
----------------------------------
Total investments in securities (100.5%) $57,105,237 (d) 90,953,434
-----------------
-----------------
Liabilities in excess of other assets (-0.5%) (476,171)
--------------
NET ASSETS (100.0%) $90,477,263
--------------
--------------
</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, 1998.
(d) Cost for federal income tax purposes at December 31, 1998, was
$57,105,237. The aggregate gross unrealized appreciation and
depreciation on investments in securities based on this cost were:
<TABLE>
-------------------------------------------------
<S> <C>
Gross unrealized appreciation $33,860,147
Gross unrealized depreciation (11,950)
-------------
Net unrealized appreciation $33,848,197
-------------------------------------------------
</TABLE>
See accompanying notes to financial statements. 8
<PAGE>
JUNDT ASSOCIATES' APPROACH TO INVESTING: U.S. EMERGING GROWTH FUND
THE U.S. EMERGING GROWTH FUND CONCENTRATES ON SMALLER-CAPITALIZATION companies,
with at least half the equity securities consisting of companies with annual
revenues less than $750 million. Within these parameters, the U.S. Emerging
Growth Fund's mission is to establish equity positions in 30 to 50 companies we
believe to be among the fastest-growing corporations in America. The focus is on
companies we believe are capable of achieving annual rates of revenue growth of
25% or greater. See the Fund's prospectus for a description of the risks that
may be associated with an investment in the Fund.
INDUSTRY SECTORS REPRESENTED IN THE FUND'S PORTFOLIO AS OF DECEMBER 31, 1998
(as a percentage of net assets)
- --------------------------------------------------------------------------------
[CHART]
<TABLE>
<S> <C>
Medical Devices/Drugs 1.7%
Insurance 1.1%
Computer Services/Software 37.0%
Telecommunication Infrastructure 11.1%
Internet Technology 2.8%
Miscellaneous 12.1%
Healthcare Services 6.1%
Retail 6.3%
Restaurants 2.0%
</TABLE>
9
<PAGE>
PERFORMANCE DATA: U.S. EMERGING GROWTH FUND (UNAUDITED)
TOTAL RETURN BASED ON A $10,000 INVESTMENT
- --------------------------------------------------------------------------------
[CHART]
<TABLE>
<S> <C>
JUNDT U.S. EMERGING GROWTH FUND(1) $26,552
(Class A shares without sales charge)*
JUNDT U.S. EMERGING GROWTH FUND(1) $25,158
(Class A shares with sales charge)
LIPPER SMALL CAP GROWTH INDEX FUND(2) $13,043
RUSSELL 2000 GROWTH INDEX(3) $12,707
</TABLE>
AVERAGE ANNUAL TOTAL RETURNS (for periods ended December 31, 1998)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------
SINCE
1-YEAR INCEPTION(4)
- --------------------------------------------------------------------------------
<S> <C> <C>
JUNDT U.S. EMERGING GROWTH CLASS A
Without sales charge* 38.65% 38.52%
With sales charge (a) 31.37 36.05
- --------------------------------------------------------------------------------
JUNDT U.S. EMERGING GROWTH CLASS B
Without sales charge* 37.64 37.67
With sales charge (b) 33.64 37.14
- --------------------------------------------------------------------------------
JUNDT U.S. EMERGING GROWTH CLASS C
Without sales charge* 37.82 37.69
With sales charge (c) 36.82 37.69
- --------------------------------------------------------------------------------
JUNDT U.S. EMERGING GROWTH CLASS I 39.06 39.06
- --------------------------------------------------------------------------------
RUSSELL 2000 GROWTH INDEX 1.23 8.32
- --------------------------------------------------------------------------------
LIPPER SMALL CAP GROWTH FUND INDEX -0.85 9.26
- --------------------------------------------------------------------------------
</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 $25,771, $26,079 and $26,866,
respectively. Class B, Class C and Class I performance will vary from Class A
performance due to the differences in sales charges and expenses applicable to
an investment in each such class.
(2)The Lipper Small Cap Growth Fund Index is the composite performance of the 30
largest "small company growth" mutual funds, as categorized by Lipper Analytical
Services, Inc. Performance is presented net of the funds' fees and expenses and
assumes reinvestment of all dividends and distributions. HOWEVER, APPLICABLE
SALES CHARGES ARE NOT TAKEN INTO CONSIDERATION. Inception date for index data is
December 29, 1995.
(3)The Russell 2000 Growth Index measures the performance of the companies
within the Russell 2000 Index with relatively higher price-to-book ratios and
forecasted growth values. THE INDEX DOES NOT REFLECT THE DEDUCTION OF SALES
CHARGES AND EXPENSES THAT ARE BORNE BY MUTUAL FUND INVESTORS. Inception date for
index data is January 2, 1996.
(4)Inception dates are January 2, 1996, for the Fund's shares, the Russell 2000
Growth Index, and December 29, 1995, for Lipper Small Cap Growth Fund Index
data.
PAST PERFORMANCE OF THE FUND SHOULD NOT BE CONSIDERED PREDICTIVE OF FUTURE FUND
PERFORMANCE. PERFORMANCE INFORMATION RELATING TO JUNDT U.S. EMERGING GROWTH FUND
REFLECTS THE VOLUNTARY PAYMENT OR REIMBURSEMENT BY JUNDT ASSOCIATES, INC., THE
FUND'S INVESTMENT ADVISER, OF CERTAIN FEES AND EXPENSES. INVESTMENT RETURN AND
PRINCIPAL VALUE OF FUND SHARES WILL FLUCTUATE SO THAT SUCH SHARES, WHEN
REDEEMED, MAY BE WORTH MORE OR LESS THAN THEIR ORIGINAL COST. INVESTMENTS IN
SMALLER-CAPITALIZATION COMPANIES MAY EXPERIENCE GREATER DAILY PRICE FLUCTUATIONS
THAN INVESTMENTS IN LARGER COMPANIES.
10
<PAGE>
JUNDT U.S. EMERGING GROWTH FUND
SCHEDULE OF INVESTMENTS DECEMBER 31, 1998
<TABLE>
<CAPTION>
COMMON STOCKS
Industry Description and Issue Number of Shares Cost Market Value (a)
- ------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
COMPUTER SERVICES/SOFTWARE (37.0%)
- ------------------------------------------------------------------------------------------------------------------------
Aspect Development, Inc (b) 13,900 $ 397,375 $ 615,944
Best Software, Inc. (b) 13,900 363,763 330,125
Citrix Systems, Inc. (b) 11,400 682,995 1,106,513
CSGSystems International Inc. (b) 8,400 417,225 663,600
Documentum, Inc. (b) 16,400 621,802 876,375
DSET Corporation (b) 24,700 275,200 256,263
Eclipsys Corporation (b) 23,700 538,724 687,300
Exchange Applications Inc. (b) 17,000 245,500 333,625
Factset Research Systems Inc. (b) 12,800 541,612 790,400
Great Plains Software, Inc. (b) 10,000 368,563 482,500
HNC Software Inc. (b) 23,300 785,375 942,194
Legato Systems, Inc. (b) 7,600 282,950 501,125
Mobius Management Systems, Inc. (b) 37,600 383,056 559,300
New Era of Networks, Inc. (b) 7,300 160,931 321,200
Peregrine Systems, Inc. (b) 10,500 394,600 486,937
Pro Business Services, Inc. (b) 10,300 278,100 468,650
Sapient Corporation (b) 11,500 524,463 644,000
Veritas Software Corporation (b) 14,000 476,395 839,124
Visio Corporation (b) 7,200 259,200 263,250
----------------------------------
7,997,829 11,168,425
----------------------------------
HEALTHCARE SERVICES (6.1%)
- ------------------------------------------------------------------------------------------------------------------------
Alternative Living Services Inc. (b) 10,400 268,387 356,200
PAREXEL International Corporation (b) 12,100 440,138 302,500
Snyder Communications, Inc. (b) 12,800 493,662 432,000
Superior Consultant Holding Corporation (b) 17,400 613,400 756,900
----------------------------------
1,815,587 1,847,600
----------------------------------
INSURANCE (1.1%)
- ------------------------------------------------------------------------------------------------------------------------
Inspire Insurance Solutions, Inc. (b) 17,700 276,438 325,238
----------------------------------
</TABLE>
See accompanying notes to schedule of investments. 11
<PAGE>
JUNDT U.S. EMERGING GROWTH FUND
SCHEDULE OF INVESTMENTS (CONTINUED) DECEMBER 31, 1998
<TABLE>
<CAPTION>
COMMON STOCKS (CONTINUED)
Industry Description and Issue Number of Shares Cost Market Value (a)
- ------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
INTERNET TECHNOLOGY (2.8%)
- ------------------------------------------------------------------------------------------------------------------------
CNET, Inc. (b) 4,700 $ 163,711 $ 257,619
Concur Technologies, Inc. (b) 11,800 196,298 359,900
Lycos, Inc. (b) 4,100 149,394 227,806
----------------------------------
509,403 845,325
----------------------------------
MEDICAL DEVICES/DRUGS (1.7%)
- ------------------------------------------------------------------------------------------------------------------------
Novoste Corporation (b) 18,200 382,300 516,425
----------------------------------
RESTAURANTS (2.0%)
- ------------------------------------------------------------------------------------------------------------------------
Famous Dave's of America, Inc. (b) 97,500 445,469 274,219
P.F. Changs China Bistro Inc. (b) 15,300 272,163 348,075
----------------------------------
717,632 622,294
----------------------------------
RETAIL (6.3%)
- ------------------------------------------------------------------------------------------------------------------------
Hibbett Sporting Goods, Inc. (b) 17,300 525,675 419,525
Linens 'n Things, Inc. (b) 21,000 610,825 832,125
Restoration Hardware Inc. (b) 12,200 259,994 327,875
Select Comfort Corporation (b) 12,300 272,493 325,181
----------------------------------
1,668,987 1,904,706
----------------------------------
TELECOMMUNICATION INFRASTRUCTURE (11.1%)
- ------------------------------------------------------------------------------------------------------------------------
COM 21, Inc. (b) 16,000 185,000 336,000
Concord Communications (b) 19,200 679,256 1,089,600
Genesys Telecommunication Labs, Inc. (b) 12,700 236,538 282,575
Geotel Communications Corporation (b) 27,400 478,383 1,020,650
Terayon Communication Systems, Inc. (b) 8,300 102,136 307,100
Uniphase Corporation (b) 4,300 224,480 298,313
----------------------------------
1,905,793 3,334,238
----------------------------------
</TABLE>
See accompanying notes to schedule of investments. 12
<PAGE>
JUNDT U.S. EMERGING GROWTH FUND
SCHEDULE OF INVESTMENTS (CONTINUED) DECEMBER 31, 1998
<TABLE>
<CAPTION>
COMMON STOCKS (CONCLUDED)
Industry Description and Issue Number of Shares Cost Market Value (a)
- ------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
MISCELLANEOUS (12.1%)
- ------------------------------------------------------------------------------------------------------------------------
ABR Information Services, Inc. (b) 17,800 $ 272,575 $ 349,325
AHL Services Inc. (b) 24,100 765,900 753,125
Advantage Learning Systems, Inc. (b) 14,000 570,637 920,500
ROMACInternational, Inc. (b) 32,100 518,613 714,225
School Specialty, Inc. (b) 15,000 305,625 320,625
Sunrise Assisted Living Inc. (b) 11,100 400,074 575,812
----------------------------------
2,833,424 3,633,612
----------------------------------
TOTAL COMMON STOCKS (80.2%) 18,107,393 24,197,863
----------------------------------
----------------------------------
</TABLE>
See accompanying notes to schedule of investments. 13
<PAGE>
JUNDT U.S. EMERGING GROWTH FUND
SCHEDULE OF INVESTMENTS (CONCLUDED) DECEMBER 31, 1998
<TABLE>
<CAPTION>
SHORT-TERM SECURITIES
Issue Number of Shares Cost Market Value (a)
- ------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
MONEY MARKET FUND (11.4%)
- ------------------------------------------------------------------------------------------------------------------------
Norwest Treasury Fund, 4.10% (c) 3,421,836 $ 3,421,836 $ 3,421,836
----------------------------------
TOTAL SHORT-TERM SECURITIES (11.4%) 3,421,836 3,421,836
----------------------------------
----------------------------------
Total investments in securities (91.6%) $21,529,229 (d) 27,619,699
Other assets in excess of liabilities (8.4%) ----------------- 2,545,045
----------------- ---------------
NET ASSETS (100.0%) $30,164,744
---------------
---------------
</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, 1998.
(d) Cost for federal income tax purposes at December 31, 1998, was
$21,553,745. The aggregate gross unrealized appreciation and
depreciation on investments in securities based on this cost were:
<TABLE>
-------------------------------------------------
<S> <C>
Gross unrealized appreciation $6,608,004
Gross unrealized depreciation (542,050)
-------------
Net unrealized appreciation $6,065,954
-------------------------------------------------
</TABLE>
See accompanying notes to financial statements. 14
<PAGE>
JUNDT ASSOCIATES' APPROACH TO INVESTING: OPPORTUNITY FUND
THE OPPORTUNITY FUND'S INVESTMENT OBJECTIVE IS TO PROVIDE CAPITAL APPRECIATION
BY utilizing an aggressive yet very flexible investment program. While a
percentage of equity holdings in the Opportunity Fund may at times mirror those
in the Growth and the U.S. Emerging Growth Funds, the Opportunity Fund also may
sell securities short, invest in options and futures contracts and leverage the
portfolio. These investment techniques, among others, may be utilized by Jundt
Associates, the investment adviser, to enable the Opportunity Fund to achieve
its objective of capital appreciation. See the Fund's prospectus for a
description of the risks that may be associated with an investment in the Fund.
INDUSTRY SECTORS REPRESENTED IN THE FUND'S PORTFOLIO AS OF DECEMBER 31, 1998
(as a percentage of net assets)
- --------------------------------------------------------------------------------
[CHART]
<TABLE>
<S> <C>
Miscellaneous 1.1%
Restaurants 2.6%
Retail 8.9%
Computer Services/Software 18.1%
Telecommunication Infrastructure 13.5%
Insurance 1.2%
Healthcare Services 3.6%
Medical Devices/Drugs 12.1%
Wireless/Telecommunication Services 9.2%
Internet Technology 8.3%
</TABLE>
15
<PAGE>
PERFORMANCE DATA: OPPORTUNITY FUND (UNAUDITED)
TOTAL RETURN BASED ON A $10,000 INVESTMENT
- --------------------------------------------------------------------------------
[CHART]
<TABLE>
<S> <C>
JUNDT OPPORTUNTIY FUND(1) $22,406
(Class A shares without sales charge)*
JUNDT OPPORTUNITY FUND(1) $21,230
(Class A shares with sales charge)
RUSSELL 3000 INDEX(2) $16,172
LIPPER CAPITAL APPRECIATION FUND INDEX(3) $14,408
</TABLE>
AVERAGE ANNUAL TOTAL RETURNS (for periods ended December 31, 1998)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------
SINCE
1-YEAR INCEPTION(4)
- --------------------------------------------------------------------------------
<S> <C> <C>
JUNDT OPPORTUNITY CLASS A
Without sales charge* 60.83% 49.28%
With sales charge (a) 52.39 45.33
- --------------------------------------------------------------------------------
JUNDT OPPORTUNITY CLASS B
Without sales charge* 59.60 48.24
With sales charge (b) 55.60 47.23
- --------------------------------------------------------------------------------
JUNDT OPPORTUNITY CLASS C
Without sales charge* 59.53 48.14
With sales charge (c) 58.53 48.14
- --------------------------------------------------------------------------------
JUNDT OPPORTUNITY CLASS I 61.29 49.65
- --------------------------------------------------------------------------------
RUSSELL 3000 INDEX 24.14 26.96
- --------------------------------------------------------------------------------
LIPPER CAPITAL APPRECIATION
FUND INDEX 19.98 19.89
- --------------------------------------------------------------------------------
</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 over the same time period
was $21,793, $22,063 and $22,519, respectively. Class B, Class C and Class I
performance will vary from Class A performance due to the differences in sales
charges and expenses applicable to an investment in each such class.
(2)The Russell 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. PERFORMANCE INFORMATION RELATING TO JUNDT OPPORTUNITY FUND REFLECTS
THE VOLUNTARY PAYMENT OR REIMBURSEMENT BY JUNDT ASSOCIATES, INC., THE FUND'S
INVESTMENT ADVISER, OF CERTAIN FEES AND EXPENSES. INVESTMENT RETURN AND
PRINCIPAL VALUE OF FUND SHARES WILL FLUCTUATE SO THAT SUCH SHARES, WHEN
REDEEMED, MAY BE WORTH MORE OR LESS THAN THEIR ORIGINAL COST. SELLING SECURITIES
SHORT, EMPLOYING LEVERAGE AND INVESTING IN OPTIONS AND FUTURES CONTRACTS INVOLVE
ADDITIONAL INVESTMENT RISK.
16
<PAGE>
JUNDT OPPORTUNITY FUND
SCHEDULE OF INVESTMENTS DECEMBER 31, 1998
<TABLE>
<CAPTION>
COMMON STOCKS
Industry Description and Issue Number of Shares Cost Market Value (a)
- ------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
COMPUTER SERVICES/SOFTWARE (18.1%)
- ------------------------------------------------------------------------------------------------------------------------
Compuware Corporation (b) 12,400 $ 483,025 $ 968,750
Microsoft Corporation (b) 11,400 1,449,225 1,581,038
Network Appliance, Inc. (b) 44,000 1,423,494 1,980,000
Novell, Inc. (b) 110,800 1,462,419 2,008,250
Veritas Software Corporation (b) 9,400 446,075 563,413
---------------------------------
5,264,238 7,101,451
---------------------------------
HEALTHCARE SERVICES (3.6%)
- ------------------------------------------------------------------------------------------------------------------------
Biogen Inc. (b) 17,000 1,316,670 1,411,000
---------------------------------
INSURANCE (1.2%)
- ------------------------------------------------------------------------------------------------------------------------
The Progressive Corporation 2,800 350,168 474,250
---------------------------------
INTERNET TECHNOLOGY (8.3%)
- ------------------------------------------------------------------------------------------------------------------------
Amazon Communications Inc. (b), (e) 1,100 273,944 353,375
America Online, Inc. (b) 15,500 642,887 2,480,000
Digital River Inc. (b) 12,300 289,050 436,650
---------------------------------
1,205,881 3,270,025
---------------------------------
MEDICAL DEVICES/DRUGS (12.1%)
- ------------------------------------------------------------------------------------------------------------------------
Eli Lilly and Company 12,800 848,974 1,137,600
Pfizer Inc. 14,100 1,585,745 1,768,669
Warner-Lambert Company 24,500 1,414,118 1,842,094
---------------------------------
3,848,837 4,748,363
---------------------------------
</TABLE>
See accompanying notes to schedule of investments. 17
<PAGE>
JUNDT OPPORTUNITY FUND
SCHEDULE OF INVESTMENTS (CONTINUED) DECEMBER 31, 1998
<TABLE>
<CAPTION>
COMMON STOCKS (CONCLUDED)
Industry Description and Issue Number of Shares Cost Market Value (a)
- ------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
RESTAURANTS (2.6%)
- ------------------------------------------------------------------------------------------------------------------------
Starbucks Corp. (b) 17,900 $ 726,048 $ 1,004,638
--------------------------------
RETAIL (8.9%)
- ------------------------------------------------------------------------------------------------------------------------
Abercrombie & Fitch Co. (b) 5,300 318,318 374,975
Best Buy Inc. (b) 9,500 412,633 583,063
PetSmart Inc. 107,300 661,305 1,180,300
The Home Depot, Inc. 22,000 761,709 1,346,125
--------------------------------
2,153,965 3,484,463
--------------------------------
TELECOMMUNICATION INFRASTRUCTURE (13.5%)
- ------------------------------------------------------------------------------------------------------------------------
Ascend Communications, Inc. (b) 17,800 894,740 1,170,350
At Home Corporation (b) 10,900 484,470 809,325
Cisco Systems, Inc. (b) 15,150 904,644 1,406,108
QWest Communications International (b) 18,200 722,313 910,000
RSL Communications Ltd. (b) 13,000 328,375 383,500
3Com Corporation (b) 13,800 659,813 618,412
--------------------------------
3,994,355 5,297,695
--------------------------------
WIRELESS/TELECOMMUNICATION SERVICES (9.2%)
- ------------------------------------------------------------------------------------------------------------------------
Cablevision Systems Corporation (b) 27,000 1,050,569 1,355,062
MCI WorldCom, Inc. (b) 31,100 1,511,856 2,231,425
--------------------------------
2,562,425 3,586,487
--------------------------------
MISCELLANEOUS (1.1%)
- ------------------------------------------------------------------------------------------------------------------------
Bright Horizons Family Solution, Inc. (b) 16,000 342,280 432,000
--------------------------------
TOTAL COMMON STOCKS (78.6%) 21,764,867 30,810,372
--------------------------------
--------------------------------
</TABLE>
See accompanying notes to schedule of investments. 18
<PAGE>
JUNDT OPPORTUNITY FUND
SCHEDULE OF INVESTMENTS (CONCLUDED) DECEMBER 31, 1998
<TABLE>
<CAPTION>
SHORT-TERM SECURITIES
Issue Number of Shares Cost Market Value (a)
- ------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Money Market Fund (13.9%)
- ------------------------------------------------------------------------------------------------------------------------
Norwest Treasury Fund, 4.10% (c) 5,426,509 $ 5,426,509 $ 5,426,509
--------------------------------
TOTAL SHORT-TERM SECURITIES (13.9%) 5,426,509 5,426,509
--------------------------------
Total investments in securities (92.5%) $27,191,376 (d) 36,236,881
Other assets in excess of liabilities (7.5%) --------------- 2,948,792
--------------- ----------------
NET ASSETS (100.0%) $39,185,673
----------------
----------------
</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, 1998.
(d) Cost for federal income tax purposes at December 31, 1998, was
$27,305,358. The aggregate gross unrealized appreciation and
depreciation on investments in securities based on this cost were:
<TABLE>
-------------------------------------------------
<S> <C>
Gross unrealized appreciation $8,972,923
Gross unrealized depreciation (41,400)
-------------
Net unrealized appreciation $8,931,523
-------------------------------------------------
</TABLE>
(e) Security is pledged as collateral for Uncovered short sales entered
into as of December 31, 1998:
<TABLE>
<CAPTION>
-----------------------------------------------------------------
Shares Issue Market Value
-----------------------------------------------------------------
<S> <C> <C>
15,900 Ford Motor Company $(933,131)
-----------------------------------------------------------------
Total (Proceeds -- $930,158) $(933,131)
-----------------------------------------------------------------
</TABLE>
See accompanying notes to financial statements. 19
<PAGE>
JUNDT ASSOCIATES' APPROACH TO INVESTING: TWENTY-FIVE FUND
THE TWENTY-FIVE FUND'S INVESTMENT OBJECTIVE IS TO PROVIDE LONG-TERM CAPITAL
appreciation by investing in a core portfolio of approximately 20 to 30 issues
of common stock. In selecting investments for the Fund's portfolio, Jundt
Associates employs a fundamental "bottom up" approach in seeking to identify
companies with strong revenue growth. The companies in this Fund will typically
be companies that also are represented in the other Jundt Funds. Because this
Fund is a non-diversified Fund, Jundt Associates may, with respect to 50% of the
assets of the Fund, use broad investment discretion in the pursuit of the
investment objective. However, investment company regulations require that at
least 50% of the Fund's assets must be fully diversified. See the Fund's
prospectus for a description of the risks that may be associated with an
investment in the Fund.
INDUSTRY SECTORS REPRESENTED IN THE FUND'S PORTFOLIO AS OF DECEMBER 31, 1998
(as a percentage of net assets)
- --------------------------------------------------------------------------------
[CHART]
<TABLE>
<S> <C>
Retail 7.3%
Restaurants 7.0%
Internet Technology 8.5%
Computer Services/Software 16.0%
Wireless/Telecommunication Services 9.2%
Computer Hardware 3.0%
Telecommunication Infrastructure 10.0%
Medical Devices/Drugs 17.0%
</TABLE>
20
<PAGE>
PERFORMANCE DATA: TWENTY-FIVE FUND (UNAUDITED)
TOTAL RETURN BASED ON A $10,000 INVESTMENT
- --------------------------------------------------------------------------------
[CHART]
<TABLE>
<S> <C>
JUNDT TWENTY-FIVE FUND(1) $17,521
(Class A shares without sales charge)*
JUNDT TWENTY-FIVE FUND(1) $16,602
(Class A shares with sales charge)
RUSSELL 1000 GROWTH INDEX(2) $13,871
LIPPER CAPITAL APPRECIATION FUND INDEX(3) $11,998
</TABLE>
AGGREGATE ANNUAL TOTAL RETURNS (for periods ended December 31, 1998)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------
SINCE
1-YEAR INCEPTION(4)
- --------------------------------------------------------------------------------
<S> <C> <C>
JUNDT TWENTY-FIVE CLASS A
Without sales charge* 75.21% 75.21%
With sales charge (a) 66.02 66.02
- --------------------------------------------------------------------------------
JUNDT TWENTY-FIVE CLASS B
Without sales charge* 73.37 73.37
With sales charge (b) 69.37 69.37
- --------------------------------------------------------------------------------
JUNDT TWENTY-FIVE CLASS C
Without sales charge* 73.69 73.69
With sales charge (c) 72.69 72.69
- --------------------------------------------------------------------------------
JUNDT TWENTY-FIVE CLASS I 75.43 75.43
- --------------------------------------------------------------------------------
RUSSELL 1000 GROWTH INDEX 38.71 38.71
- --------------------------------------------------------------------------------
LIPPER CAPITAL APPRECIATION
FUND INDEX 19.98 19.98
- --------------------------------------------------------------------------------
</TABLE>
*Applicable to investors who purchased shares at net asset value (without sales
charges).
(a) maximum initial sales charge of 5.25%.
(b) a contingent deferred sales charge of up to 4% will be imposed if shares
are redeemed within six years of purchase.
(c) a contingent deferred sales charge of 1% will be imposed if shares are
redeemed within one year of purchase.
(1)Total return is based on a hypothetical investment at the Fund's inception on
December 31, 1997. ACTUAL PERFORMANCE OF INVESTORS WILL VARY DEPENDING UPON THE
TIMING OF THEIR INVESTMENTS IN THE FUND. Total return assumes reinvestment of
all dividends and distributions. One line reflects total return with deduction
of the current maximum initial sales charge of 5.25%, and the other line
reflects total return without such charge. The ending value of investments in
the Fund's Class B shares (reflecting the deduction of the maximum deferred
sales charge of 4%), Class C shares and Class I shares (which are not subject to
any sales charges) over the same time period was $16,937, $17,369 and $17,543,
respectively. Class B, Class C and Class I performance will vary from Class A
performance due to the differences in sales charges and expenses applicable to
an investment in each such class.
(2)The Russell 1000 Growth Index measures the performance of the companies
within the Russell 1000 Index with relatively higher price-to-book ratios and
forecasted growth values. THE INDEX DOES NOT REFLECT THE DEDUCTION OF SALES
CHARGES AND EXPENSES THAT ARE BORNE BY MUTUAL FUND INVESTORS. Inception date for
index data is December 31, 1997.
(3)The Lipper Capital Appreciation Fund Index is the composite performance of
the 30 largest "capital appreciation" mutual Funds, as categorized by Lipper
Analytical Services, Inc. Performance is presented net of the Funds' fees and
expenses and assumes reinvestment of all dividends and distributions. HOWEVER,
APPLICABLE SALES CHARGES ARE NOT TAKEN INTO CONSIDERATION. Inception date for
index data is December 31, 1997.
(4)Inception date is December 31, 1997, for the Fund's shares.
PAST PERFORMANCE OF THE FUND SHOULD NOT BE CONSIDERED PREDICTIVE OF FUTURE FUND
PERFORMANCE. PERFORMANCE INFORMATION RELATING TO JUNDT TWENTY-FIVE FUND REFLECTS
THE VOLUNTARY PAYMENT OR REIMBURSEMENT BY JUNDT ASSOCIATES, INC., THE FUND'S
INVESTMENT ADVISER, OF CERTAIN FEES AND EXPENSES. INVESTMENT RETURN AND
PRINCIPAL VALUE OF FUND SHARES WILL FLUCTUATE SO THAT SUCH SHARES, WHEN
REDEEMED, MAY BE WORTH MORE OR LESS THAN THEIR ORIGINAL COST. NON-DIVERSIFIED
MUTUAL FUNDS MAY EXPERIENCE GREATER PRICE VOLATILITY THAN DIVERSIFIED MUTUAL
FUNDS.
21
<PAGE>
Jundt Twenty-Five Fund
SCHEDULE OF INVESTMENTS December 31, 1998
<TABLE>
<CAPTION>
COMMON STOCKS
Industry Description and Issue Number of Shares Cost Market Value (a)
- --------------------------------------------------------------------------------------------------
COMPUTER HARDWARE (3.0%)
- --------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Dell Computer Corporation (b) 3,800 $ 253,400 $ 278,113
---------------------------------
COMPUTER SERVICES/SOFTWARE (16.0%)
- --------------------------------------------------------------------------------------------------
Aspect Development, Inc. (b) 3,800 130,900 168,388
Compuware Corporation (b) 2,300 93,481 179,688
Microsoft Corporation (b) 2,500 317,813 346,718
Network Appliance, Inc. (b) 9,000 287,775 405,000
Sapient Corporation (b) 3,200 147,300 179,200
Veritas Software Corporation (b) 3,000 146,947 179,812
---------------------------------
1,124,216 1,458,806
---------------------------------
INTERNET TECHNOLOGY (8.5%)
- --------------------------------------------------------------------------------------------------
Amazon Communications Inc. (b) 300 74,712 96,375
America Online, Inc. (b) 3,200 140,421 512,000
Intuit, Inc. (b) 2,300 99,250 166,750
---------------------------------
314,383 775,125
---------------------------------
MEDICAL DEVICES/DRUGS (17.0%)
- --------------------------------------------------------------------------------------------------
Eli Lilly and Company 2,400 191,857 213,300
Monsanto Company 3,400 149,226 161,500
Pfizer Inc. 4,300 496,190 539,381
Schering-Plough Corporation 5,400 287,047 298,350
Warner-Lambert Company 4,400 268,988 330,825
---------------------------------
1,393,308 1,543,356
---------------------------------
</TABLE>
See accompanying notes to schedule of investments.
22
<PAGE>
Jundt Twenty-Five Fund
SCHEDULE OF INVESTMENTS (CONTINUED) December 31, 1998
<TABLE>
<CAPTION>
COMMON STOCKS (CONCLUDED)
Industry Description and Issue Number of Shares Cost Market Value (a)
- --------------------------------------------------------------------------------------------------
RESTAURANTS (7.0%)
- --------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
P.F. Changs China Bistro Inc. (b) 7,900 $ 146,225 $ 179,725
Starbucks Corp. (b) 8,100 376,068 454,613
---------------------------------
522,293 634,338
---------------------------------
RETAIL (7.3%)
- --------------------------------------------------------------------------------------------------
Abercrombie & Fitch Co. (b) 1,200 72,072 84,900
Bed, Bath & Beyond (b) 10,200 306,000 348,075
The Home Depot, Inc. 3,600 143,132 220,275
---------------------------------
521,204 653,250
---------------------------------
TELECOMMUNICATION INFRASTRUCTURE (10.0%)
- --------------------------------------------------------------------------------------------------
Cisco Systems, Inc. (b) 2,400 132,525 222,750
Geotel Communications (b) 4,200 114,963 156,450
QWest Communications International (b) 4,500 178,594 225,000
Tellabs, Inc. (b) 4,600 298,938 315,388
---------------------------------
725,020 919,588
---------------------------------
WIRELESS/TELECOMMUNICATION SERVICES (9.2%)
- --------------------------------------------------------------------------------------------------
Cablevision Systems Corporation (b) 7,900 316,963 396,480
MCI WorldCom, Inc. (b) 6,100 265,267 437,675
---------------------------------
582,230 834,155
---------------------------------
TOTAL COMMON STOCKS (78.0%) 5,436,054 7,096,731
---------------------------------
---------------------------------
See accompanying notes to schedule of investments.
23
<PAGE>
Jundt Twenty-Five Fund
SCHEDULE OF INVESTMENTS (CONCLUDED) December 31, 1998
SHORT-TERM SECURITIES
Issue Number of Shares Cost Market Value (a)
- --------------------------------------------------------------------------------------------------
MONEY MARKET FUND (3.6%)
- --------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Norwest Treasury Fund, 4.10% (c) 177,373 $ 177,373 $ 177,373
Norwest U.S. Government Fund, 4.70% (c) 150,000 150,000 150,000
---------------------------------
TOTAL SHORT-TERM SECURITIES (3.6%) 327,373 327,373
---------------------------------
---------------------------------
Total investments in securities (81.6%) $5,763,427(d) 7,424,104
Other assets in excess of liabilities (18.4%) ------------- 1,671,559
------------- ----------
NET ASSETS (100.0%) $9,095,663
----------
----------
</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, 1998.
(d) Cost for federal income tax purposes
at December 31, 1998, was $5,782,784.
The aggregate gross unrealized appreciation
on investments in securities based on
this cost was:
<TABLE>
<CAPTION>
---------------------------------------------------
<S> <C>
Gross unrealized appreciation $1,641,320
Gross unrealized depreciation 0
---------
Net unrealized appreciation $1,641,320
---------------------------------------------------
</TABLE>
See accompanying notes to financial statements.
24
<PAGE>
FINANCIAL STATEMENTS December 31, 1998
<TABLE>
<CAPTION>
STATEMENTS OF ASSETS AND LIABILITIES
Jundt Jundt U.S. Jundt Jundt
Growth Emerging Opportunity Twenty-Five
Fund Growth Fund Fund Fund
- -------------------------------------------------------------------------------------------------------------------------------
ASSETS
- -------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Investment in securities, at market value (note 2)
(identified cost: $57,105,237, $21,529,229,
$27,191,376, and $5,763,427, respectively) $90,953,434 $27,619,699 $36,236,881 $7,424,104
Cash -- -- 3,615 1,487,804
Receivable for securities sold -- 2,146,916 2,563,779 96,522
Receivable for capital shares sold 36,901 509,400 1,443,551 350,844
Receivable from brokers for proceeds
on securities sold short -- -- 930,158 --
Receivable from investment adviser -- -- 8,428 23,360
Dividends and accrued interest receivable 4,950 1,463 2,380 100
Deferred organizational costs -- 34,745 25,390 25,699
Prepaid expenses and other assets 13,165 11,428 17,743 9,017
-------------------------------------------------------------------
Total assets 91,008,450 30,323,651 41,231,925 9,417,450
-------------------------------------------------------------------
LIABILITIES
- -------------------------------------------------------------------------------------------------------------------------------
Common stocks sold short, at market value
(proceeds $930,158) -- -- 933,131 --
Payable for securities purchased -- 18,906 967,606 250,852
Payable for capital shares redeemed 248,050 732 -- 3,925
Accrued investment advisory fee 74,235 29,168 36,287 8,286
Accrued administrative fee 14,847 4,573 3,397 3,397
Accrued distribution fee 739 9,905 9,092 2,509
Short sale dividends payable -- -- 4,511 --
Accrued expenses and other liabilities 193,316 95,623 92,228 52,818
-------------------------------------------------------------------
Total liabilities 531,187 158,907 2,046,252 321,787
-------------------------------------------------------------------
Net assets applicable to outstanding capital stock $90,477,263 $30,164,744 $39,185,673 $9,095,663
-------------------------------------------------------------------
-------------------------------------------------------------------
</TABLE>
- -------------------------------------------------------------------------------
See accompanying notes to financial statements. 25
<PAGE>
FINANCIAL STATEMENTS (CONTINUED) December 31, 1998
<TABLE>
<CAPTION>
STATEMENTS OF ASSETS AND LIABILITIES (CONCLUDED)
Jundt Jundt U.S. Jundt Jundt
Growth Emerging Opportunity Twenty-Five
Fund Growth Fund Fund Fund
- -------------------------------------------------------------------------------------------------------------------------------
NET ASSETS CONSIST OF
- -------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Capital stock (note 1) $58,115,553 $25,397,665 $32,374,251 $7,568,370
Accumulated net investment loss (37) (102,935) (125,378) --
Accumulated net realized loss on investments (1,486,450) (1,220,456) (2,105,732) (133,384)
Unrealized appreciation on investments 33,848,197 6,090,470 9,042,532 1,660,677
---------------------------------------------------------------------
Total, representing net assets applicable to
outstanding capital stock $90,477,263 $30,164,744 $39,185,673 $9,095,663
---------------------------------------------------------------------
---------------------------------------------------------------------
Net assets applicable to outstanding Class A shares $ 954,469 $ 8,057,903 $ 9,852,486 $3,181,271
---------------------------------------------------------------------
---------------------------------------------------------------------
Net assets applicable to outstanding Class B shares $ 514,781 $ 8,461,927 $ 8,387,842 $2,320,648
---------------------------------------------------------------------
---------------------------------------------------------------------
Net assets applicable to outstanding Class C shares $ 256,061 $ 3,300,701 $ 2,763,646 $ 667,262
---------------------------------------------------------------------
---------------------------------------------------------------------
Net assets applicable to outstanding Class I shares $88,751,952 $10,344,213 $18,181,699 $2,926,482
---------------------------------------------------------------------
---------------------------------------------------------------------
SHARES OUTSTANDING AND NET ASSET VALUE PER SHARE
- -------------------------------------------------------------------------------------------------------------------------------
Class A shares of capital stock outstanding:
57,274; 538,450; 622,136 and 198,082, respectively $16.66 $14.96 $15.84 $16.06
---------------------------------------------------------------------
---------------------------------------------------------------------
Class B shares of capital stock outstanding:
31,720; 578,674; 537,815 and 146,031, respectively $16.23 $14.62 $15.60 $15.89
---------------------------------------------------------------------
---------------------------------------------------------------------
Class C shares of capital stock outstanding:
15,755; 225,611; 177,606 and 41,808, respectively $16.25 $14.63 $15.56 $15.96
---------------------------------------------------------------------
---------------------------------------------------------------------
Class I shares of capital stock outstanding:
5,271,919; 679,633; 1,141,200 and 182,068, $16.83 $15.22 $15.93 $16.07
respectively ---------------------------------------------------------------------
---------------------------------------------------------------------
</TABLE>
See accompanying notes to financial statements. 26
<PAGE>
FINANCIAL STATEMENTS (CONTINUED) December 31, 1998
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
STATEMENTS OF OPERATIONS
Jundt Jundt U.S. Emerging Jundt Jundt
For the year ended December 31, 1998 Growth Fund Growth Fund Opportunity Fund Twenty-Five Fund
- -----------------------------------------------------------------------------------------------------------------------------------
INCOME
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Interest $ 365,592 $ 134,089 $ 146,706 $ 36,547
Dividends 185,104 2,497 28,292 4,196
--------------------------------------------------------------------------
550,696 136,586 174,998 40,743
--------------------------------------------------------------------------
EXPENSES (note 4)
- -----------------------------------------------------------------------------------------------------------------------------------
Investment adviser fee 824,938 214,784 236,669 42,951
Transfer agent fee 217,180 133,411 120,520 65,094
Administrative fee 164,987 42,957 40,000 40,000
Registration fee 61,325 54,313 58,914 46,148
Directors' fees 75,346 17,176 13,132 3,210
Legal fees 64,555 11,906 14,600 4,444
Audit fees 45,065 16,860 18,950 9,650
Custodian fee 28,126 26,351 22,860 11,919
Reports to shareholders 52,204 14,083 12,038 4,847
Dividends on short sales -- -- 4,511 --
Amortization of deferred organizational costs -- 17,345 8,494 65,558
Account maintenance fee:
Class A 1,683 10,052 8,955 2,136
Class B 806 12,710 9,297 704
Class C 262 4,991 2,176 534
Distribution fee:
Class B 2,417 38,132 27,890 2,113
Class C 786 14,973 6,529 1,602
Other 31,476 25,588 19,408 7,503
--------------------------------------------------------------------------
Total expenses before interest expense
and reimbursement 1,571,156 655,632 624,943 308,413
Interest expense (note 5) -- -- 13,260 --
Reimbursement of expenses -- (241,858) (220,893) (235,245)
--------------------------------------------------------------------------
Expenses after interest expense and reimbursement 1,571,156 413,774 417,310 73,168
--------------------------------------------------------------------------
Net investment loss (1,020,460) (277,188) (242,312) (32,425)
--------------------------------------------------------------------------
NET REALIZED AND UNREALIZED GAIN (LOSS)
ON INVESTMENTS
- ------------------------------------------------------------------------------------------------------------------------------------
Net realized gain on investments
and futures transactions (note 3) 16,059,306 3,540,329 1,246,413 502,873
Net realized gain on short sale transactions (note 3) -- -- 565,921 --
--------------------------------------------------------------------------
Net realized gain on investments, futures
transactions and short sale transactions 16,059,306 3,540,329 1,812,334 502,873
--------------------------------------------------------------------------
Net change in unrealized appreciation
(depreciation) on investments 15,406,886 4,632,268 9,092,058 1,660,677
--------------------------------------------------------------------------
Net gain on investments 31,466,192 8,172,597 10,904,392 2,163,550
--------------------------------------------------------------------------
Net increase in net assets resulting from
operations $30,445,732 $7,895,409 $10,662,080 $2,131,125
--------------------------------------------------------------------------
--------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
See accompanying notes to financial statements. 27
<PAGE>
FINANCIAL STATEMENTS (CONTINUED)
- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
STATEMENTS OF CHANGES IN NET ASSETS
Jundt Growth Fund
----------------------------------------------
Year ended Year ended
12/31/98 12/31/97
- -----------------------------------------------------------------------------------------------------------------------------------
OPERATIONS
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Net investment loss $ (1,020,460) $ (1,110,023)
Net realized gain on investments, futures transactions and
short sale transactions 16,059,306 8,023,453
Net change in unrealized appreciation (depreciation) on investments 15,406,886 2,470,376
----------------------------------------------
Net increase in net assets resulting from operations 30,445,732 9,383,806
----------------------------------------------
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS
- -----------------------------------------------------------------------------------------------------------------------------------
Investment income-net -- --
Realized capital gains-net (16,565,764) (4,654,856)
----------------------------------------------
Total dividends and distributions to shareholders (16,565,764) (4,654,856)
----------------------------------------------
CAPITAL SHARE TRANSACTIONS
- -----------------------------------------------------------------------------------------------------------------------------------
Net proceeds from shares sold:
Class A shares 349,721 370,587
Class B shares 253,844 206,044
Class C shares 172,098 75,777
Class I shares 418,518 624,608
Distributions reinvested:
Class A shares 111,672 26,802
Class B shares 83,942 9,539
Class C shares 35,442 1,574
Class I shares 10,672,487 3,135,404
Cost of shares redeemed:
Class A shares (218,461) (133,803)
Class B shares (46,703) (60,621)
Class C shares (45,271) --
Class I shares (17,026,901) (23,984,987)
----------------------------------------------
Net increase (decrease)
in net assets from capital
share transactions (5,239,612) (19,729,076)
----------------------------------------------
NET ASSETS
- -----------------------------------------------------------------------------------------------------------------------------------
Total increase (decrease) in net assets 8,640,356 (15,000,126)
Net assets at beginning of period 81,836,907 96,837,033
----------------------------------------------
Net assets at end of period $90,477,263 $81,836,907
----------------------------------------------
----------------------------------------------
- -----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
See accompanying notes to financial statements. 28
<PAGE>
December 31, 1998
- --------------------------------------------------------------------------------
<TABLE>
Jundt U.S. Emerging Growth Fund
- ------------------------------------------------------------------------------------------------------------------------
Year ended Year ended
12/31/98 12/31/97
- ------------------------------------------------------------------------------------------------------------------------
OPERATIONS
- ------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Net investment loss $ (277,188) $ (150,706)
Net realized gain on investments, futures transactions and
short sale transactions 3,540,329 4,679,699
Net change in unrealized appreciation (depreciation) on investments 4,632,268 100,400
------------------------------------
Net increase in net assets resulting from operations 7,895,409 4,629,393
------------------------------------
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS
- ------------------------------------------------------------------------------------------------------------------------
Investment income-net -- --
Realized capital gains-net (4,838,503) (3,890,930)
------------------------------------
Total dividends and distributions to shareholders (4,838,503) (3,890,930)
------------------------------------
CAPITAL SHARE TRANSACTIONS
- ------------------------------------------------------------------------------------------------------------------------
Net proceeds from shares sold:
Class A shares 5,541,874 958,365
Class B shares 4,835,251 1,851,712
Class C shares 2,295,856 552,081
Class I shares 321,016 610,384
Distributions reinvested:
Class A shares 1,068,038 287,832
Class B shares 1,322,588 740,993
Class C shares 428,317 309,113
Class I shares 744,262 2,200,213
Cost of shares redeemed:
Class A shares (1,264,297) (402,649)
Class B shares (2,130,547) (373,611)
Class C shares (1,225,401) (1,301,365)
Class I shares (4,024,032) (751,255)
------------------------------------
Net increase (decrease) 7,912,925 4,681,813
in net assets from capital ------------------------------------
share transactions
NET ASSETS
- ------------------------------------------------------------------------------------------------------------------------
Total increase (decrease) in net assets 10,969,831 5,420,276
Net assets at beginning of period 19,194,913 13,774,637
------------------------------------
Net assets at end of period $30,164,744 $19,194,913
------------------------------------
------------------------------------
- ------------------------------------------------------------------------------------------------------------------------
Jundt Opportunity Fund
- --------------------------------------------------------------------------------------------------------------------------
Year ended Year ended
12/31/98 12/31/97
- --------------------------------------------------------------------------------------------------------------------------
OPERATIONS
- --------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Net investment loss $ (242,312) $ (83,606)
Net realized gain on investments, futures transactions and
short sale transactions 1,812,334 1,498,062
Net change in unrealized appreciation (depreciation) on investments 9,092,058 (44,463)
--------------------------------------
Net increase in net assets resulting from operations 10,662,080 1,369,993
--------------------------------------
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS
- --------------------------------------------------------------------------------------------------------------------------
Investment income-net -- --
Realized capital gains-net (3,693,953) (1,581,765)
--------------------------------------
Total dividends and distributions to shareholders (3,693,953) (1,581,765)
--------------------------------------
CAPITAL SHARE TRANSACTIONS
- --------------------------------------------------------------------------------------------------------------------------
Net proceeds from shares sold: 7,610,926 877,406
Class A shares 5,002,356 2,322,887
Class B shares 1,973,366 402,101
Class C shares 8,867,163 3,572,825
Class I shares
Distributions reinvested: 799,925 200,988
Class A shares 757,789 422,132
Class B shares 236,036 81,151
Class C shares 1,653,982 717,064
Class I shares
Cost of shares redeemed: (954,361) (34,953)
Class A shares (1,022,932) (55,497)
Class B shares (202,152) (25,337)
Class C shares (286,640) (887,042)
Class I shares --------------------------------------
Net increase (decrease) 24,435,458 7,593,725
in net assets from capital --------------------------------------
share transactions
NET ASSETS
- --------------------------------------------------------------------------------------------------------------------------
Total increase (decrease) in net assets 31,403,585 7,381,953
Net assets at beginning of period 7,782,088 400,135
--------------------------------------
Net assets at end of period $39,185,673 $7,782,088
--------------------------------------
------------------------------------
- --------------------------------------------------------------------------------------------------------------------------
Jundt Twenty-Five Fund
- ----------------------------------------------------------------------------------------------------------------------
Year ended
12/31/98
- ----------------------------------------------------------------------------------------------------------------------
OPERATIONS
- ----------------------------------------------------------------------------------------------------------------------
<S> <C>
Net investment loss $ (32,425)
Net realized gain on investments, futures transactions and
short sale transactions 502,873
Net change in unrealized appreciation (depreciation) on investments 1,660,677
----------------------------
Net increase in net assets resulting from operations 2,131,125
----------------------------
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS
- ----------------------------------------------------------------------------------------------------------------------
Investment income-net (33,217)
Realized capital gains-net (636,523)
----------------------------
Total dividends and distributions to shareholders (669,740)
----------------------------
CAPITAL SHARE TRANSACTIONS
- ----------------------------------------------------------------------------------------------------------------------
Net proceeds from shares sold:
Class A shares 2,918,424
Class B shares 2,056,058
Class C shares 524,732
Class I shares 873,435
Distributions reinvested:
Class A shares 212,257
Class B shares 167,369
Class C shares 45,288
Class I shares 197,266
Cost of shares redeemed:
Class A shares (314,188)
Class B shares (2,762)
Class C shares (4,313)
Class I shares (39,328)
----------------------------
Net increase (decrease)
in net assets from capital
share transactions 6,634,238
----------------------------
NET ASSETS
- ----------------------------------------------------------------------------------------------------------------------
Total increase (decrease) in net assets 8,095,623
Net assets at beginning of period 1,000,040
----------------------------
Net assets at end of period $9,095,663
----------------------------
----------------------------
- ----------------------------------------------------------------------------------------------------------------------
</TABLE>
29
<PAGE>
FINANCIAL STATEMENTS (CONCLUDED)
- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
STATEMENTS OF CHANGES IN NET ASSETS (CONCLUDED)
Jundt Growth Fund
---------------------------------------------------
Year ended Year ended
12/31/98 12/31/97
- ---------------------------------------------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS
- ---------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Shares sold:
Class A shares 20,906 25,010
Class B shares 15,594 14,104
Class C shares 10,773 5,410
Class I shares 25,096 43,234
Shares issued for dividends reinvested:
Class A shares 6,923 1,997
Class B shares 5,343 721
Class C shares 2,253 120
Class I shares 655,156 232,252
Shares redeemed:
Class A shares (13,115) (9,331)
Class B shares (2,753) (4,036)
Class C shares (2,969) --
Class I shares (1,076,518) (1,655,398)
-----------------------------------------------
Net increase (decrease) in shares outstanding (353,311) (1,345,917)
-----------------------------------------------
-----------------------------------------------
</TABLE>
- --------------------------------------------------------------------------------
See accompanying notes to financial statements. 30
<PAGE>
December 31, 1998
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Jundt U.S. Emerging Growth Fund
-------------------------------------------------------------
Year ended Year ended
12/31/98 12/31/97
- -----------------------------------------------------------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Shares sold:
Class A shares 387,148 63,886
Class B shares 353,188 120,487
Class C shares 162,620 37,559
Class I shares 22,537 43,886
Shares issued for dividends reinvested:
Class A shares 76,343 23,212
Class B shares 96,751 60,638
Class C shares 31,310 25,337
Class I shares 52,302 175,316
Shares redeemed:
Class A shares (86,818) (28,016)
Class B shares (164,853) (25,701)
Class C shares (86,234) (87,924)
Class I shares (283,626) (52,145)
--------------------------------------------------------------
Net increase (decrease) in shares outstanding 560,668 356,535
--------------------------------------------------------------
--------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
Jundt Opportunity Fund Jundt Twenty-Five Fund
-------------------------------------------------------------
Year ended Year ended Year ended
12/31/98 12/31/97 12/31/98
- ------------------------------------------------------------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Shares sold:
Class A shares 541,117 70,697 205,005
Class B shares 353,809 173,963 134,446
Class C shares 138,215 33,112 38,184
Class I shares 696,667 326,742 75,548
Shares issued for dividends reinvested:
Class A shares 52,317 18,926 13,616
Class B shares 50,318 40,088 10,809
Class C shares 15,704 7,707 2,920
Class I shares 107,541 67,330 12,629
Shares redeemed:
Class A shares (69,605) (2,625) (21,540)
Class B shares (76,346) (4,124) (225)
Class C shares (15,420) (1,820) (297)
Class I shares (22,204) (63,883) (3,110)
-----------------------------------------------------------------
Net increase (decrease) in shares outstanding 1,772,113 666,113 467,985
-----------------------------------------------------------------
-----------------------------------------------------------------
</TABLE>
- --------------------------------------------------------------------------------
31
<PAGE>
NOTES TO FINANCIAL STATEMENTS December 31, 1998
- --------------------------------------------------------------------------------
1. ORGANIZATION
The Jundt Funds are registered under the Investment Company Act of 1940 (as
amended) (the "Act") as open-end management investment companies, each of which
has different investment objectives and their own investment portfolios and net
asset values. The Jundt Growth Fund, Inc. ("Growth Fund") commenced operations
on September 3, 1991, as a diversified, closed-end investment company and
converted to an open-end investment company immediately following the close of
business on December 28, 1995. Jundt U.S. Emerging Growth Fund ("U.S. Emerging
Growth Fund"), Jundt Opportunity Fund ("Opportunity Fund") and Jundt Twenty-Five
Fund ("Twenty-Five Fund") are Funds within Jundt Funds, Inc. (the "Company").
The Company accounts separately for the assets, liabilities and operations of
each Fund. U.S. Emerging Growth Fund, a diversified Fund of the Company,
commenced operations on January 2, 1996. Opportunity Fund, a non-diversified
Fund of the Company, commenced operations on December 26, 1996. Twenty-Five
Fund, a non-diversified Fund of the Company, commenced operations on December
31, 1997. The only transactions of Twenty-Five Fund prior to commencement of
operations were the sale of shares to a principal of Jundt Associates, Inc. (the
"Adviser").
Growth Fund, U.S. Emerging Growth Fund, Opportunity Fund and Twenty-Five Fund
(the "Funds") currently offer shares in four classes (Class A, Class B, Class C
and Class I). Prior to April 22, 1997, Class I shares of each Fund then in
existence were referred to as Class A shares, and the current Class A shares of
each such Fund were referred to as Class D shares. Shares of Class I of U.S.
Emerging Growth Fund, Opportunity Fund and Twenty-Five Fund (which are not
subject to a front-end or deferred sales charge) are available for investment
only by certain individuals and entities associated with the Funds. Class A
shares of each Fund and Class I shares of Growth Fund (which are available only
to persons that may purchase the other Funds' Class I shares and to Growth Fund
shareholders at the time of the open-end conversion) are generally sold with a
front-end sales charge. Shares of Class B and Class C of each Fund may be
subject to a contingent deferred sales charge when redeemed.
All classes of shares have identical liquidation and other rights and the same
terms and conditions except that Class A, Class B and Class C shares bear
certain expenses related to the account maintenance of such shares and Class B
and Class C shares also bear certain expenses related to the distribution of
such shares. Shareholder servicing costs attributable to a particular class will
be allocated to such class. Each class has exclusive voting rights with respect
to matters relating to its account maintenance and distribution expenditures and
to certain other matters relating exclusively to such class; otherwise, all
classes of shares have the same voting rights.
Growth Fund is authorized to issue up to 10 billion shares, par value $0.01 per
share. The Company is authorized to issue up to 1 trillion shares, par value
$0.01 per share. Currently, 10 billion shares have been designated to each U.S.
Emerging Growth Fund, Opportunity Fund and Twenty-Five Fund.
The investment objective of each Fund is as follows:
- - Growth Fund--to provide long-term capital appreciation by investing primarily
in a diversified portfolio of equity securities of companies that are believed
by the Adviser to have significant potential for growth in revenue and earnings.
- - U.S. Emerging Growth Fund--to provide long-term capital appreciation by
investing primarily in a diversified portfolio of equity securities of emerging
growth companies that are believed by the Adviser to have significant potential
for growth in revenue and earnings.
- - Opportunity Fund--to provide capital appreciation by employing an aggressive
yet flexible investment program emphasizing investments in domestic companies
that are believed by the Adviser to have significant potential for capital
appreciation.
- - Twenty-Five Fund--to provide long-term capital appreciation by investing in a
core portfolio of approximately 20 to 30 issues of common stock.
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The significant accounting policies followed by the Funds are as follows:
32
<PAGE>
NOTES TO FINANCIAL STATEMENTS (CONTINUED) December 31, 1998
- --------------------------------------------------------------------------------
INVESTMENT IN SECURITIES
Investment in securities traded on U.S. securities exchanges or included in a
national market system and open short sales transactions are valued at the last
quoted sales price as of the close of business on the date of valuation or,
lacking any sales, at the mean between the most recently quoted bid and asked
prices. Securities traded in the over-the-counter market are valued at the mean
between the most recently quoted bid and asked prices. Options and futures
contracts are valued at market value or fair value if no market exists, except
that open futures contracts sales are valued using the closing settlement price
or, in the absence of such a price, the most recently quoted asked price. Other
securities for which market quotations are not readily available are valued at
fair value in good faith by or under the direction of the Board of Directors.
Short-term securities with maturities of fewer than 60 days when acquired, or
which subsequently are within 60 days of maturity, are valued at amortized cost,
which approximates market value.
Security transactions are accounted for on the date the securities are purchased
or sold. Realized gains and losses are calculated on the identified cost basis.
Dividend income is recognized on the ex-dividend date. Interest income,
including level-yield amortization of discount, is accrued daily.
FEDERAL TAXES
The Funds intend to comply with the requirements of the Internal Revenue Code
applicable to regulated investment companies and also intend to distribute
substantially all of their investment company taxable income to shareholders.
Therefore, no income tax provision is required. In addition, on a calendar year
basis, the Funds will make sufficient distributions of their net investment
income and realized gains, if any, to avoid the payment of any federal excise
taxes.
Net investment income (loss) and net realized gains (losses) may differ for
financial statement and tax purposes primarily due to wash sales and net
operating losses. The character of distributions made during the period from net
investment income or net realized gains, if any, may differ from their ultimate
characterization for federal income tax purposes. Also, due to the timing of
dividend distributions, the period in which amounts are distributed may differ
from the year the income or realized gains (losses) were recorded by the Funds.
On the statement of assets and liabilities, as a result of permanent book-to-tax
differences, the following reclassifications were made.
Growth Fund-accumulated net investment loss has been decreased by $1,020,423,
resulting in a reclassification adjustment to decrease paid-in capital by
$1,020,423; U.S. Emerging Growth Fund-accumulated net investment loss has been
decreased by $218,088, resulting in a reclassification adjustment to increase
accumulated net realized loss on investments by $200,743 and a reclassification
adjustment to decrease paid-in capital by $17,345; Opportunity Fund-accumulated
net investment loss has been decreased by $154,690, resulting in a
reclassification adjustment to increase accumulated realized loss on investments
by $127,799, and a reclassification adjustment to decrease paid-in capital by
$26,891; Twenty-Five Fund-accumulated net investment loss has been decreased by
$65,642, resulting in a reclassification adjustment to decrease accumulated net
realized loss on investments by $266 and a reclassification adjustment to
decrease paid-in capital by $65,908.
During 1997, for federal income tax reporting purposes, U.S. Emerging Growth
Fund and Opportunity Fund changed their tax year end to August 31 from December
31. As a result of differing book and tax year-ends for these Funds, timing
differences may arise between the ultimate classifications 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.
33
<PAGE>
NOTES TO FINANCIAL STATEMENTS (CONTINUED) December 31, 1998
- --------------------------------------------------------------------------------
The risk associated with purchasing an option is that the Funds pay a premium
whether or not the option is exercised. Additionally, the Funds bear the risk of
loss of premium and change in market value should the counterparty not perform
under the contract. Put and call options purchased are accounted for in the same
manner as portfolio securities. The cost of securities acquired through the
exercise of call options is increased by the premiums paid. The proceeds from
securities sold through the exercise of put options are decreased by the premium
paid.
When the Funds write an option, the premium received by the Funds is recorded as
a liability and is subsequently adjusted to the current market value of the
option written. Premiums received from writing options which expire unexercised
are recorded by the Funds on the expiration date as realized gains from option
transactions. The difference between the premium received and the amount paid on
effecting a closing purchase transaction, 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. Securities sold short at December 31,
1998, and their related market values and proceeds are set forth in the Notes to
Schedule of Investments.
DISTRIBUTIONS TO SHAREHOLDERS
Distributions are recorded as of the close of business on the ex-dividend date.
Such distributions are payable in cash or reinvested in additional shares of
each Fund.
EXPENSES
Expenses directly attributable to each Fund are charged to that Fund's
operations; expenses which are applicable to all Funds are allocated among the
Funds on a pro rata basis.
DEFERRED ORGANIZATION AND OFFERING COSTS
Organization costs were incurred in connection with the start-up and initial
registration of U.S. Emerging Growth Fund, Opportunity Fund and Twenty-Five
Fund. These costs are being amortized over a period not to exceed 60 months from
the commencement of investment operations of such Fund. In the event any of the
initial shares are redeemed during the period that the Funds are amortizing
their organizational costs, the redemption proceeds payable will be reduced by
the unamortized organizational costs in the same ratio as the number of initial
shares being redeemed to the number of initial shares outstanding at the time of
redemption.
Offering costs were capitalized by the Funds and amortized over 12 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.
34
<PAGE>
NOTES TO FINANCIAL STATEMENTS (CONTINUED) December 31, 1998
- --------------------------------------------------------------------------------
3. INVESTMENT SECURITY TRANSACTIONS
For the year ended December 31, 1998, for Growth Fund, U.S. Emerging Growth
Fund, Twenty-Five Fund and Opportunity Fund, the cost of purchases and proceeds
from sales of securities, other than temporary investments in short-term
securities, were as follows:
<TABLE>
<CAPTION>
Cost of Proceeds
Purchases from Sales
- ----------------------------------------------------------------------
<S> <C> <C>
Growth Fund $59,650,811 $82,845,946
U.S. Emerging
Growth Fund $39,460,361 $36,681,390
Opportunity Fund
Long-term investment transactions $69,081,285 $56,687,376
Short sale transactions $13,058,887 $13,624,808
Twenty-Five Fund $12,794,341 $ 7,871,586
- ----------------------------------------------------------------------
- ----------------------------------------------------------------------
</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 pay certain expenses in U.S.
Emerging Growth Fund, Opportunity Fund and Twenty-Five Fund. Such voluntary
expense reimbursement may be discontinued or modified at the Adviser's sole
discretion.
During 1998, the Funds have entered into administration agreements with
Princeton Administrators, L.P. (the "Administrator") which provide the
Administrator with a monthly administrative fee in an amount equal to an
annualized rate of 0.20% of each Fund's average daily net assets, subject to an
annual minimum fee of $40,000 for each Fund. For its fee, the Administrator
provides certain administrative, accounting, clerical and record keeping
services for each Fund.
The Funds have entered into distribution agreements with U.S. Growth
Investments, Inc. (the "Distributor"), an affiliate of the Adviser. The
Distributor serves as the principal underwriter of each Fund's shares. Pursuant
to the Distribution Plans adopted by each Fund in accordance with Rule 12b-1
under the Act, each Fund pays the Distributor ongoing account maintenance and
distribution fees. The fees are accrued daily and paid monthly at annual rates
based upon the average daily net assets of each Fund's share classes as follows:
<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, auditing and accounting services, insurance and other
miscellaneous expenses.
Legal fees of $64,555 for the year ended December 31, 1998, for Growth Fund,
$11,906 for U.S. Emerging Growth Fund, $14,660 for Opportunity Fund and $4,444
for Twenty-Five Fund were incurred for a law firm of which the secretary of each
Fund is a partner. Certain officers and/or directors of each Fund are officers
and/or directors of the Adviser and/or the Distributor. The Company and Growth
Fund pay each director who is not an "affiliated person" as defined in the Act a
combined fee of $13,000 per year plus $1,300 for each meeting attended.
5. BANK BORROWING
The Opportunity Fund 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. For the year ended December 31, 1998, the average daily
balance of loans outstanding was $744,484 at a weighted average interest rate of
8.50%. The maximum amount of loans outstanding at any time during the period was
$2,035,000, or 7.98% of total assets. The loans were collateralized by certain
Opportunity Fund investments.
35
<PAGE>
NOTES TO FINANCIAL STATEMENTS (CONTINUED) December 31, 1998
- --------------------------------------------------------------------------------
6. FINANCIAL HIGHLIGHTS -- GROWTH FUND AND U.S. EMERGING GROWTH FUND
Per share data for a share of capital stock outstanding throughout each period
and selected supplemental and ratio information for each period indicated,
calculated based on average shares outstanding, are as follows. (For periods
prior to December 31, 1995, the Growth Fund operated as a closed-end investment
company.)
<TABLE>
<CAPTION>
Net Realized
Beginning and Dividends Distributions
Net Asset Net Unrealized from Net from Net
Value Per Investment Gain (Loss) on Investment Investment
Share Loss Investments Income Gains
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
GROWTH FUND
Class A
Year ended 12/31/98 $14.20 (0.24) 6.22 -- (3.52)
Year ended 12/31/97 $13.64 (0.23) 1.64 -- (0.85)
Year ended 12/31/96 $11.95 (0.26) 2.03 -- (0.08)
Class B
Year ended 12/31/98 $13.99 (0.35) 6.11 -- (3.52)
Year ended 12/31/97 $13.56 (0.32) 1.60 -- (0.85)
Year ended 12/31/96 $11.95 (0.36) 2.05 -- (0.08)
Class C
Year ended 12/31/98 $13.97 (0.35) 6.15 -- (3.52)
Year ended 12/31/97 $13.54 (0.30) 1.58 -- (0.85)
Year ended 12/31/96 $11.95 (0.36) 2.03 -- (0.08)
Class I
Year ended 12/31/98 $14.28 (0.20) 6.27 -- (3.52)
Year ended 12/31/97 $13.69 (0.19) 1.63 -- (0.85)
Year ended 12/31/96 $11.95 (0.23) 2.05 -- (0.08)
Year ended 12/31/95 $14.95 (0.12) 2.71 -- (5.59)
Period from 7/1/94 to 12/31/94 $13.53 (0.07) 1.83 -- (0.34)*
Year ended 6/30/94 $15.10 (0.11) (0.57) -- (0.89)(3)
U.S. EMERGING GROWTH FUND
Class A
Year ended 12/31/98 $13.09 (0.17) 5.02 -- (2.98)
Year ended 12/31/97 $12.42 (0.11) 4.09 -- (3.31)
Period from 1/2/96** to 12/31/96 $10.00 (0.14) 4.47 -- (1.91)
Class B
Year ended 12/31/98 $12.90 (0.27) 4.92 -- (2.93)
Year ended 12/31/97 $12.37 (0.21) 4.05 -- (3.31)
Period from 1/2/96** to 12/31/96 $10.00 (0.24) 4.52 -- (1.91)
Class C
Year ended 12/31/98 $12.88 (0.27) 4.94 -- (2.92)
Year ended 12/31/97 $12.36 (0.21) 4.04 -- (3.31)
Period from 1/2/96** to 12/31/96 $10.00 (0.24) 4.51 -- (1.91)
Class I
Year ended 12/31/98 $13.25 (0.13) 5.10 -- (3.00)
Year ended 12/31/97 $12.51 (0.07) 4.12 -- (3.31)
Period from 1/2/96** to 12/31/96 $10.00 (0.11) 4.53 -- (1.91)
</TABLE>
*Tax return of capital.
**Commencement of operations.
(1) Total investment return is based on the change in net asset value of a
share during the period, assumes reinvestment of distributions and excludes the
effects of sales loads. Total investment returns prior to December 29, 1995,
reflect performance of the Growth Fund as a closed-end Fund
36
<PAGE>
December 31, 1998
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Ratio to Average Net Assets
-----------------------------------------------------
Ending
Net Asset
Value Per Net Investment Net Gross
Share Loss Expenses Expenses
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
GROWTH FUND
Class A
Year ended 12/31/98 $16.66 (1.45%) 2.14% 2.14%
Year ended 12/31/97 $14.20 (1.49%) 2.18% 2.18%
Year ended 12/31/96 $13.64 (1.81%) 2.13% 2.13%
Class B
Year ended 12/31/98 $16.23 (2.18%) 2.89% 2.89%
Year ended 12/31/97 $13.99 (2.28%) 2.93% 2.93%
Year ended 12/31/96 $13.56 (2.53%) 2.88% 2.88%
Class C
Year ended 12/31/98 $16.25 (2.15%) 2.89% 2.89%
Year ended 12/31/97 $13.97 (2.32%) 2.93% 2.93%
Year ended 12/31/96 $13.54 (2.49%) 2.88% 2.88%
Class I
Year ended 12/31/98 $16.83 (1.23%) 1.89% 1.89%
Year ended 12/31/97 $14.28 (1.22%) 1.93% 1.93%
Year ended 12/31/96 $13.69 (1.56%) 1.88% 1.88%
Year ended 12/31/95 $11.95 (0.72%) 1.60% 1.60%
Period from 7/1/94 to 12/31/94 $14.95 (0.98%)(2) 1.58%(2) 1.58%(2)
Year ended 6/30/94 $13.53 (0.63%) 1.55% 1.55%
U.S. EMERGING GROWTH FUND
Class A $14.96 (1.16%) 1.80% 2.93%
Year ended 12/31/98 $13.09 (0.88%) 1.80% 3.35%
Year ended 12/31/97 $12.42 (1.36%)(2) 1.80%(2) 3.83%(2)
Period from 1/2/96** to 12/31/96
Class B $14.62 (1.91%) 2.55% 3.68%
Year ended 12/31/98 $12.90 (1.63%) 2.55% 4.10%
Year ended 12/31/97 $12.37 (2.15%)(2) 2.55%(2) 3.62%(2)
Period from 1/2/96** to 12/31/96
Class C $14.63 (1.91%) 2.55% 3.68%
Year ended 12/31/98 $12.88 (1.63%) 2.55% 4.10%
Year ended 12/31/97 $12.36 (2.13%)(2) 2.55%(2) 4.32%(2)
Period from 1/2/96** to 12/31/96
Class I $15.22 (0.91%) 1.55% 2.68%
Year ended 12/31/98 $13.25 (0.63%) 1.55% 3.10%
Year ended 12/31/97 $12.51 (1.09%)(2) 1.55%(2) 3.44%(2)
Period from 1/2/96** to 12/31/96
</TABLE>
<TABLE>
<CAPTION>
Portfolio Net Assets At
Total Turnover End of Period
Return(1) Rate (000's Omitted)
- ---------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
GROWTH FUND
Class A
Year ended 12/31/98 42.90% 78% $ 954
Year ended 12/31/97 10.67% 115% $ 604
Year ended 12/31/96 14.81% 57% $ 340
Class B
Year ended 12/31/98 41.98% 78% $ 515
Year ended 12/31/97 9.77% 115% $ 189
Year ended 12/31/96 14.14% 57% $ 37
Class C
Year ended 12/31/98 42.32% 78% $ 256
Year ended 12/31/97 9.82% 115% $ 80
Year ended 12/31/96 13.97% 57% $ 2
Class I
Year ended 12/31/98 43.30% 78% $ 88,752
Year ended 12/31/97 10.85% 115% $ 80,964
Year ended 12/31/96 15.22% 57% $ 96,458
Year ended 12/31/95 17.81% 155% $140,642
Period from 7/1/94 to 12/31/94 13.06% 19% $223,317
Year ended 6/30/94 (4.53)% 70% $202,192
U.S. EMERGING GROWTH FUND
Class A 38.65% 197% $ 8,058
Year ended 12/31/98 33.54% 264% $ 2,117
Year ended 12/31/97 43.40% 204% $ 1,275
Period from 1/2/96** to 12/31/96
Class B 37.64% 197% $ 8,462
Year ended 12/31/98 32.55% 264% $ 3,786
Year ended 12/31/97 42.90% 204% $ 1,709
Period from 1/2/96** to 12/31/96
Class C 37.82% 197% $ 3,301
Year ended 12/31/98 32.50% 264% $ 1,519
Year ended 12/31/97 42.82% 204% $ 1,766
Period from 1/2/96** to 12/31/96
Class I 39.06% 197% $ 10,344
Year ended 12/31/98 33.87% 264% $ 11,773
Year ended 12/31/97 44.32% 204% $ 9,025
Period from 1/2/96** to 12/31/96
</TABLE>
(assuming dividend reinvestment pursuant to the Growth Fund's Dividend
Reinvestment Plan as then in effect); as an open-end Fund, the Growth Fund
incurs certain additional expenses as a result of the continuous offering
and redemption of its shares. Total investment returns for periods of less
than one full year are not annualized.
(2) Adjusted to an annual basis.
(3) Includes tax return of capital of $0.37 per share.
37
<PAGE>
NOTES TO FINANCIAL STATEMENTS (CONCLUDED)
- --------------------------------------------------------------------------------
6. FINANCIAL HIGHLIGHTS (CONCLUDED) -- OPPORTUNITY FUND AND TWENTY-FIVE FUND
Per share data for a share of capital stock outstanding throughout each period
and selected supplemental and ratio information for each period indicated,
calculated based on average shares outstanding, are as follows:
<TABLE>
<CAPTION>
Net Realized
Beginning and Dividends Distributions
Net Asset Net Unrealized from Net from Net
Value Per Investment Gain (Loss) on Investment Investment
Share Loss Investments Income Gains
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
OPPORTUNITY FUND
Class A
Year ended 12/31/98 $11.03 (0.17) 6.81 -- (1.83)
Year ended 12/31/97 $ 9.87 (0.17) 4.12 -- (2.79)
Period from 12/26/96* to 12/31/96 $10.00 -- (0.13) -- --
Class B
Year ended 12/31/98 $10.94 (0.27) 6.73 -- (1.80)
Year ended 12/31/97 $ 9.87 (0.26) 4.12 -- (2.79)
Period from 12/26/96* to 12/31/96 $10.00 -- (0.13) -- --
Class C
Year ended 12/31/98 $10.93 (0.27) 6.71 -- (1.81)
Year ended 12/31/97 $ 9.87 (0.25) 4.10 -- (2.79)
Period from 12/26/96* to 12/31/96 $10.00 -- (0.13) -- --
Class I
Year ended 12/31/98 $11.06 (0.14) 6.85 -- (1.84)
Year ended 12/31/97 $ 9.87 (0.14) 4.12 -- (2.79)
Period from 12/26/96* to 12/31/96 $10.00 -- (0.13) -- --
TWENTY-FIVE FUND
Class A
Year ended 12/31/98 $10.00 (0.15) 7.63 (0.07) (1.35)
Class B
Year ended 12/31/98 $10.00 (0.27) 7.57 (0.06) (1.35)
Class C
Year ended 12/31/98 $10.00 (0.25) 7.58 (0.02) (1.35)
Class I
Year ended 12/31/98 $10.00 (0.10) 7.61 (0.09) (1.35)
</TABLE>
*Commencement of operations.
(1) Total investment return is based on the change in net asset value of a
share during the period, assumes reinvestment of distributions and excludes
the effects of sales loads. Total investment returns for periods of less
than one full year are not annualized.
(2) Adjusted to an annual basis.
(3) For Opportunity Fund, excluding interest expense, net of reimbursement.
(4) For Opportunity Fund, excluding interest expense, before reimbursement.
(5) For Opportunity Fund, including interest expense, before reimbursement.
38
<PAGE>
December 31, 1998
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Ratio to Average Net Assets
---------------------------------------------------------------------
Ending
Net Asset Gross Expenses
Value Per Net Investment Net Gross Including
Share Loss Expenses(3) Expenses(4) Interest Expense(5)
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
OPPORTUNITY FUND
Class A
Year ended 12/31/98 $15.84 (1.28%) 2.14% 3.35% 3.45%
Year ended 12/31/97 $11.03 (1.71%) 2.14% 6.57% 6.85%
Period from 12/26/96* to 12/31/96 $ 9.87 (2.14%)(2) 2.14%(2) 4.23%(2) 4.23%(2)
Class B
Year ended 12/31/98 $15.60 (2.03%) 2.89% 4.10% 4.20%
Year ended 12/31/97 $10.94 (2.36%) 2.89% 7.32% 7.50%
Period from 12/26/96* to 12/31/96 $ 9.87 (2.98%)(2) 2.89%(2) 4.98%(2) 4.98%(2)
Class C
Year ended 12/31/98 $15.56 (2.06%) 2.89% 4.10% 4.20%
Year ended 12/31/97 $10.93 (2.49%) 2.89% 7.32% 7.63%
Period from 12/26/96* to 12/31/96 $ 9.87 (3.02%)(2) 2.89%(2)(3) 4.98%(2) 4.98%(2)
Class I
Year ended 12/31/98 $15.93 (1.04%)(2) 1.89%(2) 3.10% 3.20%
Year ended 12/31/97 $11.06 (1.56%) 1.89% 6.32% 6.70%
Period from 12/26/96* to 12/31/96 $ 9.87 (1.89%)(2) 1.89%(2) 3.98%(2) 3.98%(2)
TWENTY-FIVE FUND $16.06 (1.06%) 2.25% 9.37% N/A
Class A
Year ended 12/31/98 $15.89 (1.78%) 3.00% 10.12% N/A
Class B
Year ended 12/31/98 $15.96 (1.81%) 3.00% 10.12% N/A
Class C
Year ended 12/31/98 $16.07 (0.74%) 2.00% 9.12% N/A
Class I
Year ended 12/31/98
Portfolio Net Assets At
Total Turnover End of Period
Return(1) Rate (000's Omitted)
- ------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
OPPORTUNITY FUND
Class A
Year ended 12/31/98 60.83% 376% $ 9,852
Year ended 12/31/97 41.15% 298% $ 1,084
Period from 12/26/96* to 12/31/96 (1.30%) 0% $ 112
Class B
Year ended 12/31/98 59.60% 376% $ 8,388
Year ended 12/31/97 40.25% 298% $ 2,298
Period from 12/26/96* to 12/31/96 (1.30%) 0% $ 1
Class C
Year ended 12/31/98 59.53% 376% $ 2,764
Year ended 12/31/97 40.12% 298% $ 427
Period from 12/26/96* to 12/31/96 (1.30%) 0% $ 1
Class I
Year ended 12/31/98 61.29% 376% $18,182
Year ended 12/31/97 41.45% 298% $ 3,973
Period from 12/26/96* to 12/31/96 (1.30%) 0% $ 286
TWENTY-FIVE FUND 75.21% 294% $ 3,181
Class A
Year ended 12/31/98 73.37% 294% $ 2,321
Class B
Year ended 12/31/98 73.69% 294% $ 667
Class C
Year ended 12/31/98 75.43% 294% $ 2,926
Class I
Year ended 12/31/98
</TABLE>
39
<PAGE>
INDEPENDENT AUDITORS' REPORT
- --------------------------------------------------------------------------------
THE BOARD OF DIRECTORS AND SHAREHOLDERS
The Jundt Growth Fund, Inc. and Jundt Funds, Inc.:
We have audited the accompanying statements of assets and liabilities, including
the schedules of investments of The Jundt Growth Fund, Inc. and Jundt U.S.
Emerging Growth Fund, Jundt Opportunity Fund and Jundt Twenty-Five Fund (Funds
within Jundt Funds, Inc.) as of December 31, 1998, and the related statements of
operations for the year then ended, statements of changes in net assets for each
of the years in the two-year period then ended (the year ended December 31,
1998, for Jundt Twenty-Five Fund) and the financial highlights for the periods
presented in note 5 to the financial statements. These financial statements and
the financial highlights are the responsibility of the Funds' management. Our
responsibility is to express an opinion on these financial statements and the
financial highlights based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and preform the audit to obtain
reasonable assurance about whether the financial statements and financial
highlights are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements and financial highlights. Investment securities held in custody are
confirmed to us by the custodian. As to securities purchased and sold, but not
received or delivered, we request confirmations from brokers and, where replies
are not received, we carry out other appropriate auditing procedures. An audit
also includes assessing the accounting principles used and significant estimates
made by management, as well as evaluating the overall financial statement
presentation. We believe that our audits provide a reasonable basis for our
opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of The
Jundt Growth Fund, Inc., Jundt U.S. Emerging Growth Fund, Jundt Opportunity Fund
and Jundt Twenty-Five Fund as of December 31, 1998, 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 31, 1999
40
<PAGE>
FEDERAL TAX INFORMATION (UNAUDITED)
- --------------------------------------------------------------------------------
Information for federal income tax purposes is presented as an aid to
shareholders in reporting the dividend distributions for the year ended December
31, 1998, shown below. Shareholders should consult a tax adviser on how to
report these distributions for federal and state income tax purposes.
None of the ordinary income distributions paid by the Funds during the year
ended December 31, 1998, qualify for the dividends received deduction for
corporations.
Per share distributions are as follows (distributions of short-term capital
gains are included in ordinary income):
<TABLE>
<CAPTION>
Long-Term
Record Payable Ordinary Capital
Date Date Income Gains*
- -------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
GROWTH FUND
(Class A, B, C, I) 12/22/98 12/31/98 -- $3.51613
U.S. EMERGING
GROWTH FUND
Class A 12/22/98 12/31/98 $1.57317 $1.40915
Class B 12/22/98 12/31/98 $1.52260 $1.40915
Class C 12/22/98 12/31/98 $1.50894 $1.40915
Class I 12/22/98 12/31/98 $1.58831 $1.40915
OPPORTUNITY FUND
Class A 12/22/98 12/31/98 $1.3259 $0.50762
Class B 12/22/98 12/31/98 $1.28808 $0.50762
Class C 12/22/98 12/31/98 $1.30526 $0.50762
Class I 12/22/98 12/31/98 $1.33538 $0.50762
TWENTY-FIVE FUND
Class A 12/22/98 12/31/98 $1.15706 $0.26166
Class B 12/22/98 12/31/98 $1.14662 $0.26166
Class C 12/22/98 12/31/98 $1.10727 $0.26166
Class I 12/22/98 12/31/98 $1.17042 $0.26166
</TABLE>
*All of the long-term capital gain distributions are subject to the
20% tax rate.
41
<PAGE>
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<PAGE>
This page left blank intentionally.
<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, NJ08543-9095
TRANSFER AGENT
National Financial Data Services
P.O. Box 419168
Kansas City, MO 64141-6168
1-800-370-0612
CUSTODIAN
Norwest Bank Minnesota, N.A.
Sixth & Marquette
Minneapolis, MN 55479
INDEPENDENT AUDITORS
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, Jundt Opportunity Fund and Jundt Twenty-Five Fund reflects the voluntary
payment or reimbursement by Jundt Associates, Inc., each Fund's investment
adviser, of certain fees and expenses.
This report must be accompanied or preceded by the Funds' current prospectus.
General information regarding each Fund's portfolio, updated monthly, is
available by calling Princeton Administrators, L.P., at 1-800-543-6217 or
1-609-282-4600.
