<PAGE> 1
- --------------------------------------------------------------------------------
CHAIRMAN'S LETTER TO SHAREHOLDERS
- --------------------------------------------------------------------------------
Dear Shareholder:
As we enter our fourth year of operation, I would like to take this
opportunity to thank our long-time shareholders for their continued loyalty and
welcome those of you who are newcomers to the Fund. Our basic philosophy remains
unchanged -- utilize the CAN-SLIM discipline to seek out the finest growth
companies in our investment universe.
In fiscal 1996, we posted an average annual total return of 37.38%*,
placing us among the elite funds in our peer group. This marked our best year to
date by a large margin.
These results were gratifying when compared to other important measures.
According to figures compiled by Morningstar, The New USA Mutual Fund generated
a 35.97%* average annual total return for the 12 months ended December 31, 1995,
which compared favorably to the average 28.07% load adjusted total return of the
770 Growth funds in our universe. Overall, we ranked 42nd out of these 770
Growth funds in calendar 1995 based on total return, placing us in the top 6%
(this ranking does not take sales charges into account).
While our basic strategy remains unchanged for 1996, be assured that we
are not resting on our recent achievements. New USA Research & Management Co.
utilizes some of the most sophisticated database tools in the industry, a number
of which are proprietary. Using these tools as a foundation, we are continuously
exploring new ways to enhance our long-term performance.
Although we can't predict the nature of the financial markets during this
election year, we can be fairly certain that politicians and media sources will
serve up a particularly heavy dose of negative commentary over the next twelve
months. Because we make it our goal to search out the best companies in American
business, our view of the U.S. and its economy is quite different from the one
offered by these purveyors of "doom and gloom."
What we see is a country facing mild inflationary and recessionary
pressures, blessed with a steady stream of innovative and dynamic companies, and
a leadership position in many key areas of business and technology. From this
vantage point, we have little doubt that (over time) the U.S. equity markets
will continue to offer a robust selection of attractive growth companies. We
look forward to seeking out and investing in these types of companies on behalf
of our shareholders.
Sincerely,
/s/ William J. O'Neil
- ---------------------
William J. O'Neil
Chairman
- --------------------------------------------------------------------------------
* The Fund's average annual total return from its inception date (4-29-92) to
12-31-95 was 12.75% and to 1-31-96 was 11.11%. All Fund returns quoted include
the deduction of the maximum 5% sales charge. Past performance is no guarantee
of future results. Investment return and principal value will fluctuate so that,
when redeemed, an investor's shares may be worth more or less than their
original costs.
The Fund's Distributor is William O'Neil + Co. Incorporated, a member of the
NYSE, NASD and SIPC.
<PAGE> 2
- --------------------------------------------------------------------------------
MANAGEMENT'S DISCUSSION AND ANALYSIS
- --------------------------------------------------------------------------------
LOOKING BACK AT 1995
After a slow start during the first three months of 1995, our large positions in
technology started to pay off as the year progressed. We concentrated a majority
of our assets in Semiconductor Manufacturers and Semiconductor Equipment stocks
in the spring and sold these holdings with big gains in late August as they
began to top. Our strength during the latter part of the year came from our
timely move into Internet-related stocks such as Netscape, Spyglass and C Cube
Microsystems (1.02%, 1.22% and 8.28% of net assets, respectively, as of November
15, 1995). We were up 35.97%* in calendar 1995, with our performance rather
evenly divided between each half of the year.
THE PRESENT YEAR - 1996
Our stocks did so well during 1995 (particularly during the fourth quarter) that
many of our holdings spent the early part of 1996 moving sideways. In addition,
the market's strength during the first two months of 1996 was concentrated in
the largest capitalization stocks, which drove the Dow up 8.2%, but had less of
an influence on the NASDAQ market (where we have our heaviest concentration of
names). During this period, the NASDAQ rose only 3.2%. Although we expect to see
greater volatility in the market than last year, we feel the bull market will
last through the end of 1996. We continue to be fully invested and have spread
our assets among 108 stocks.
SECTOR OVERVIEW
Currently, our largest group holdings are in Computer Software (16.61% of net
assets), Medical/Ethical Drugs (6.31%), Medical/Biomedics/Genetics (5.90%) and
Telecommunications Equipment (5.73%). Most of the computer software stocks we
own are participating in the rapid movement of information and business data
across networks and the Internet. Other holdings include: Cisco Systems (1.24%)
and Fore Systems (1.14%), which are helping to speed the flow of data between
multiple locations; and McAfee Associates (2.06%), which is helping to protect
computers and networks from computer viruses.
In the medical arena we own stocks like Elan PLC ADR (2.61%), which has unique
drug delivery systems; Biochem Pharmaceutical (2.50%), which is developing drugs
for the treatment of Aids and Hepatitis B; and Renal Treatment Centers (2.06%),
which is one of the largest operators and consolidators of kidney dialysis
centers in the U.S.
OUTLOOK FOR THE FUTURE
Regardless of who wins the Presidency in November, interest rate trends will
continue to exert a major influence on the financial markets. If the economy
continues to muddle along, rates will stay the same or decline -- which is
good for stocks. The huge inflow of money by individuals into mutual funds
should also support the market. No matter what the scenario, we plan to use our
CAN-SLIM discipline to search for the best entrepreneurial and innovative
companies in the stock market. If favorable market conditions prevail through
the end of 1996, we think that The New USA Mutual Fund can be an excellent
investment vehicle, as well as an attractive way to participate in the ownership
of many of today's most dynamic growth companies.
Sincerely,
/s/ David Ryan
- ---------------------------------------
David Ryan
Portfolio Manager/Senior Vice President
March 4, 1996
- --------------------------------------------------------------------------------
* The Fund's average annual total return from its inception date (4-29-92) to
12-31-95 was 12.75% and to 1-31-96 was 11.11%. All Fund returns quoted include
the deduction of the maximum 5% sales charge. Past performance is no guarantee
of future results. Investment return and principal value will fluctuate so that,
when redeemed, an investor's shares may be worth more or less than their
original cost.
The Fund's Distributor is William O'Neil + Co. Incorporated, a member of the
NYSE, NASD and SIPC.
<PAGE> 3
- --------------------------------------------------------------------------------
MANAGEMENT'S DISCUSSION AND ANALYSIS:
INDEX COMPARISON
- --------------------------------------------------------------------------------
COMPARISON OF A HYPOTHETICAL $10,000 INVESTMENT IN
THE NEW USA MUTUAL FUND* AND THE S&P 500*
From April 29, 1992 (commencement of operations)
through January 31, 1996
<TABLE>
<CAPTION>
The New USA
Mutual Fund S&P 500
<S> <C> <C>
04/29/92 9.5 10
01/29/93 10.45 10.8925
01/31/94 11.3821 12.2955
01/31/95 10.2781 12.3606
01/31/96 14.8631 17.1392
</TABLE>
Fiscal Year-Ends
AVERAGE ANNUAL TOTAL RETURNS**
YEAR ENDED JANUARY 31, 1996
<TABLE>
<CAPTION>
Past 1 year
-----------
<S> <C>
The New USA Mutual Fund 44.61%
The New USA Mutual Fund
(inc. max. 5% front-end load) 37.38%
S&P 500 38.66%
</TABLE>
- --------------------------------------------------------------------------------
* Performance graph for The New USA Mutual Fund includes deduction of the
maximum 5% front-end load. The S&P 500 return assumes no transaction costs.
** "Total Return" is calculated including reinvestment of all income dividends
and capital gains distributions. Past performance results shown in this
report should not be considered a representation of future performance.
<PAGE> 4
- --------------------------------------------------------------------------------
THE NEW USA MUTUAL FUND
SCHEDULE OF INVESTMENTS IN SECURITIES
JANUARY 31, 1996
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------
SHARES MARKET
HELD VALUE
- ------------------------------------------------------------------------------------------------
<S> <C> <C>
COMMON STOCKS - 110.55%
AEROSPACE/DEFENSE - 2.41%
57,500 Boeing Co....................................................... $ 4,463,437
-----------
AEROSPACE/DEFENSE
EQUIPMENT - 0.81%
37,500 Precision Castparts Corp........................................ 1,495,313
-----------
BUILDING/RESIDENTIAL/
COMMERCIAL - 2.10%
75,000 Continental Homes
Holding Corp.................................................. 1,650,000
30,000 Newhall Land & Farming
Co. California................................................ 532,500
25,000 Palm Harbor Homes Inc.+......................................... 523,438
60,000 Toll Brothers Inc.+............................................. 1,170,000
-----------
3,875,938
-----------
BUILDING-MOBILE/
MANUFACTURING & RV - 3.66%
45,000 Clayton Homes Inc............................................... 900,000
75,000 Oakwood Homes Corp.............................................. 3,356,250
72,500 Redman Industries New+.......................................... 2,510,312
-----------
6,766,562
-----------
CHEMICALS/SPECIALTY - 1.07%
26,000 Cytec Industries Inc.+.......................................... 1,982,500
-----------
COMMERCIAL SERVICES/
ADVERTISING - 0.19%
5,000 Catalina Marketing Corp.+....................................... 353,750
-----------
COMMERCIAL SERVICES/
MISCELLANEOUS - 1.33%
20,000 APAC Teleservices Inc.+......................................... 915,000
5,000 Clintrials Research Inc.+....................................... 135,625
47,000 Copart Inc.+.................................................... 1,398,250
-----------
2,448,875
-----------
COMMERCIAL SERVICES/
PRINTING TRADE - 0.90%
25,000 Cadmus Communications
Corp.......................................................... 715,625
20,000 Oracle Systems Corp.+........................................... 955,000
-----------
1,670,625
-----------
COMMERCIAL SERVICES/
SCHOOLS - 1.13%
125,200 Youth Services Inc.+............................................ $ 2,097,100
-----------
COMMERCIAL SERVICES/SECURITY/
SAFETY - 1.00%
30,000 Corrections Corp.
America+...................................................... 1,278,750
20,000 Wackenhut Corrections
Corp.+........................................................ 565,000
-----------
1,843,750
-----------
COMPUTER/GRAPHICS - 0.01%
1,000 Visioneer Communications
Inc.+......................................................... 22,000
-----------
COMPUTER/INTEGRATED
SYSTEMS - 6.46%
70,000 Brooktrout Technology Inc.+..................................... 2,186,406
44,000 HCIA Inc.+...................................................... 2,453,000
15,000 Kronos Inc.+.................................................... 510,000
30,000 Medic Computer Systems
Inc.+......................................................... 1,702,500
31,000 Netscape Communications
Corp.+........................................................ 5,091,750
-----------
11,943,656
-----------
COMPUTER/LOCAL AREA
NETWORKS - 0.61%
2,000 Ascend Communications
Inc.+......................................................... 77,750
8,000 Cisco Systems Inc.+............................................. 666,000
20,000 Netstar Inc.+................................................... 382,500
-----------
1,126,250
-----------
COMPUTER/MEMORY
DEVICES - 3.48%
92,300 C Cube Microsystems Inc.+....................................... 5,538,000
15,000 Seagate Technology +............................................ 888,750
-----------
6,426,750
-----------
COMPUTER/MINI/MICRO - 3.17%
52,500 Digital Equipment Corp.+........................................ 3,799,688
45,000 Sun Microsystems Inc.+.......................................... 2,070,000
-----------
5,869,688
-----------
</TABLE>
The accompanying notes are an integral part of this statement.
<PAGE> 5
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------------------
SHARES MARKET
HELD VALUE
- -----------------------------------------------------------------------------------------------
<S> <C> <C>
COMPUTER/PERIPHERAL
EQUIPMENT - 0.52%
2,500 Adaptec Inc.+................................................... $ 110,000
15,000 Security Dynamics +............................................. 858,750
----------
968,750
----------
COMPUTER/SERVICES - 3.38%
8,000 Gartner Group Inc. Cl A+........................................ 442,000
69,100 HBO & Co........................................................ 5,804,400
----------
6,246,400
----------
COMPUTER/SOFTWARE - 3.73%
18,000 Business Objects S A, ADR+...................................... 828,000
11,500 Cambridge Technology
Partners M+................................................... 569,250
15,000 CBT Group Public Limited+....................................... 813,750
35,000 Cognos Inc.+.................................................... 1,386,875
5,000 Epic Design
Technology Inc.+.............................................. 150,000
25,000 HNC Software Inc.+.............................................. 1,450,000
1,000 Open Text Corp.+................................................ 16,625
7,200 Peoplesoft Inc.+................................................ 342,000
50,800 Physicians Computer
Network Inc.+................................................. 552,450
28,000 Structural Dynamics Research
Corp.+........................................................ 780,500
----------
6,889,450
----------
COSMETICS/PERSONAL
CARE - 0.78%
45,000 Natures Sunshine
Products Inc.................................................. 1,440,000
----------
ELECTRONICS/MEASURING
INSTRUMENTS - 0.30%
29,600 Thermo Voltek Corp.+............................................ 558,700
----------
ELECTRONICS/MILITARY
SYSTEMS - 0.37%
25,000 Logicon Inc..................................................... 684,375
----------
ELECTRONICS/MISCELLANEOUS/
COMPONENTS - 0.71%
15,000 Chicago Miniature
Lamp Inc.+.................................................... 408,750
30,000 Thermolase Corp.+............................................... 896,250
----------
1,305,000
----------
ELECTRONICS/SEMICONDUCTOR
MANUFACTURING - 2.70%
55,000 Altera Corp.+................................................... $3,623,125
14,000 Maxim Integrated
Products Inc.+................................................ 497,000
15,000 Oak Technology +................................................ 750,000
10,000 Supertex Inc.+.................................................. 125,000
----------
4,995,125
----------
FINANCIAL SERVICES/
MISCELLANEOUS - 3.67%
53,600 Fila Holdings Spa ADR........................................... 2,599,600
92,300 Medaphis Corp.+................................................. 3,692,000
10,000 Sunamerica Inc.................................................. 492,500
----------
6,784,100
----------
INSTRUMENTS/SCIENTIFIC - 2.68%
204,000 Input/Output Inc.+.............................................. 4,947,000
----------
INSURANCE/ACCIDENT &
HEALTH - 0.31%
25,500 United Insurance Cos.
Inc.+......................................................... 586,500
----------
INSURANCE/DIVERSIFIED - 0.18%
5,000 Travelers Group Inc............................................. 328,750
----------
INSURANCE/PROPERTY/
CASUALTY/TITLE - 1.07%
67,500 Vesta Insurance Group Inc....................................... 1,974,375
----------
LASERS/SYSTEMS/
COMPONENTS - 0.12%
5,000 Coherent Inc.+.................................................. 228,125
----------
LEISURE/GAMING - 0.89%
55,000 Grand Casinos Inc.+............................................. 1,643,125
----------
LEISURE/HOTELS & MOTELS - 0.48%
30,000 Studio Plus America Inc.+....................................... 892,500
----------
LEISURE/MOVIES - 1.58%
100,900 Regal Cinemas Inc.+............................................. 2,926,100
----------
MACHINERY/FARM - 0.51%
20,000 Case Corp....................................................... 947,500
----------
</TABLE>
The accompanying notes are an integral part of this statement.
<PAGE> 6
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------------------
SHARES MARKET
HELD VALUE
- -----------------------------------------------------------------------------------------------
<S> <C> <C>
MEDIA/BOOKS - 0.25%
17,500 Educational Development
Corp.+........................................................ $ 455,000
-----------
MEDICAL/BIOMED/
GENETICS - 11.30%
10,500 Agouron Pharmaceuticals
Inc.+......................................................... 441,000
66,500 Amgen Inc.+..................................................... 3,998,312
140,800 Biochem Pharmaceuticals
Inc.+......................................................... 6,195,200
35,000 Celgene Corp.+.................................................. 538,125
48,000 Centocor Inc.+.................................................. 1,644,000
43,000 Chiron Corp.+................................................... 4,945,000
20,000 Curative Technologies Inc.+..................................... 387,500
65,000 Immulogic Pharmaceutical
Corp.+........................................................ 1,275,625
50,000 Liposome Inc.+.................................................. 1,200,000
10,000 Sequana Therapeutics Inc.+...................................... 261,250
-----------
20,886,012
-----------
MEDICAL/DENTAL
SUPPLIES - 0.73%
10,000 Fresenius USA Inc.+............................................. 217,500
40,000 Mentor Corp..................................................... 1,125,000
-----------
1,342,500
-----------
MEDICAL/DRUGS - 1.77%
85,000 Dura Pharmaceuticals Inc.+...................................... 3,272,500
-----------
MEDICAL/ETHICAL
DRUGS - 5.23%
97,000 Elan PLC, ADR +................................................. 5,626,000
40,000 Pfizer Inc...................................................... 2,750,000
70,000 Sequus Pharmaceuticals
Inc.+......................................................... 1,303,750
-----------
9,679,750
-----------
MEDICAL/HEALTH
MAINTENANCE - 1.82%
10,000 Compdent Corp.+................................................. 352,500
90,000 Healthsource Inc.+.............................................. 3,015,000
-----------
3,367,500
-----------
MEDICAL/HOSPITAL - 1.47%
20,000 Columbia / Hca Healthcare
Corp.......................................................... 1,112,500
20,000 Health Management
Associates +.................................................. 602,500
20,000 Universal Health Services
Inc.+......................................................... 997,500
-----------
2,712,500
-----------
MEDICAL/INSTRUMENTS - 2.44%
5,000 Hologic Inc.+................................................... $ 241,250
60,000 Idexx Labs Inc.+................................................ 3,015,000
20,000 Spine Tech Inc.+................................................ 530,000
15,000 Thermotrex Corp.+............................................... 729,375
-----------
4,515,625
-----------
MEDICAL/OUTPATIENT/
HOME CARE - 4.14%
30,000 Genesis Health Ventures
Inc.+......................................................... 1,263,750
15,000 Medpartners/ Mullikin Inc.+..................................... 540,000
45,000 Physician Reliance
Network Inc.+................................................. 2,047,500
83,000 Renal Treatment
Centers Inc.+................................................. 3,797,250
-----------
7,648,500
-----------
MEDICAL/PRODUCTS - 7.23%
70,000 Boston Scientific Corp.+........................................ 3,587,500
35,000 Nellcor Puritan Bennett
Inc.+......................................................... 2,170,000
50,800 Quintiles Transnational
Corp.+........................................................ 2,730,500
63,200 Thermo Cardiosystems Inc.+...................................... 4,676,800
10,000 Utah Med Probf Inc.+............................................ 208,750
-----------
13,373,550
-----------
METAL ORES/GOLD/SILVER - 2.14%
30,000 Firstmiss Gold Inc.+............................................ 810,000
30,000 Newmont Mining Corp............................................. 1,680,000
90,000 Santa Fe Pacific Gold
Corp.......................................................... 1,473,750
-----------
3,963,750
-----------
OIL & GAS/DRILLING - 2.94%
70,000 Diamond Offshore
Drilling Inc.+................................................ 2,668,750
60,000 Sonat Offshore Drilling
Inc........................................................... 2,767,500
-----------
5,436,250
-----------
OIL & GAS/FIELD SERVICES - 0.99%
55,000 Tidewater Inc................................................... 1,821,875
-----------
OIL & GAS/REFINING/
MARKETING - 0.36%
40,000 World Fuel Services Corp........................................ 675,000
-----------
PAPER/PAPER PRODUCTS - 0.18%
15,000 Thermo Fibertek Inc.+........................................... 326,250
-----------
</TABLE>
The accompanying notes are an integral part of this statement.
<PAGE> 7
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------------------
SHARES MARKET
HELD VALUE
- -----------------------------------------------------------------------------------------------
<S> <C> <C>
REAL ESTATE/OPERATIONS - 0.63%
40,000 Central Parking Corp............................................ $ 1,155,000
------------
RETAIL/APPAREL & SHOE - 5.10%
153,300 Gadzooks Inc.+.................................................. 3,813,337
35,000 Just For Feet Inc.+............................................. 1,089,375
65,000 Nike Inc........................................................ 4,533,750
------------
9,436,462
------------
RETAIL/DISCOUNT &
VARIETY - 0.10%
5,000 Dollar Tree Stores Inc.+........................................ 176,250
------------
RETAIL/MAJOR DISCOUNT
CHAINS - 1.35%
60,000 Sears Roebuck & Co.............................................. 2,490,000
------------
RETAIL/MISCELLANEOUS/
DIVERSIFIED - 0.88%
5,000 Baby Superstore Inc.+........................................... 242,500
35,000 Bed, Bath, & Beyond Inc.+....................................... 1,389,063
------------
1,631,563
------------
RETAIL/WHOLESALE/BUILDING
PRODUCTS - 0.51%
23,500 Hughes Supply Inc............................................... 675,625
10,800 Orchard Supply Hardware+........................................ 267,300
------------
942,925
------------
RETAIL/WHOLESALE OFFICE
SUPPLIES - 1.30%
27,000 Boise Cascade Office
Products Corp.+............................................... 1,390,500
20,000 Viking Office Products Inc.+.................................... 1,020,000
------------
2,410,500
------------
SOAP/CLEANING
PREPARATION - 0.49%
25,000 USA Detergents Inc.+............................................ 900,000
------------
STEEL/PRODUCERS - 0.09%
10,000 Chaparral Steel Co.............................................. 157,500
------------
TELECOMMUNICATIONS/
EQUIPMENT - 2.24%
25,000 Aspect Telecommunications
Corp.+........................................................ 925,000
45,000 Cable Design Technologies
Corp.+........................................................ 1,980,000
36,500 MRV Communications Inc.+........................................ 1,241,000
------------
4,146,000
------------
TELECOMMUNICATIONS/
SERVICES-MISCELLANEOUS - 0.47%
20,000 Sprint Corp..................................................... 862,500
-----------
TEXTILE/APPAREL
MANUFACTURING - 2.09%
60,000 Nautica Enterprises Inc.+....................................... 2,340,000
40,000 Tommy Hilfiger Corp.+........................................... 1,520,000
------------
3,860,000
------------
Total Common Stocks
(cost $183,744,247)........................................... 204,377,331
------------
<CAPTION>
- -------------
CONTRACT
VALUE
- -------------
<S> <C> <C>
REPURCHASE AGREEMENT - 1.41%
$2,603,980 Repurchase Agreement dated
1/31/96 with State Street Bank
and Trust Co., 5.00%, due
2/01/96, collateralized by
United States Treasury Bill
Discount Note, due 10/17/96
(market value $2,660,289)
(repurchase proceeds $2,604,342)
(cost $2,603,980)............................................. 2,603,980
------------
TOTAL INVESTMENTS AND
REPURCHASE AGREEMENT--
111.96%
(cost $186,348,227)........................................... 206,981,311
OTHER ASSETS LESS
LIABILITIES--(11.96)%.......................................... (22,114,220)
------------
NET ASSETS--100.00% $184,867,091
============
</TABLE>
+ Non-income producing security.
The accompanying notes are an integral part of this statement.
<PAGE> 8
- --------------------------------------------------------------------------------
THE NEW USA MUTUAL FUND
STATEMENT OF ASSETS AND LIABILITIES
JANUARY 31, 1996
- --------------------------------------------------------------------------------
<TABLE>
<S> <C>
ASSETS:
Investments in securities, at value
(cost $183,744,247) (Note 1).................................................. $204,377,331
Repurchase agreement (Note 1)................................................... 2,603,980
------------
Total investments and repurchase
agreement..................................................................... 206,981,311
------------
Receivable for securities sold.................................................. 10,187,793
Receivable for Fund shares sold................................................. 118,842
Deferred organization expenses -
net (Note 1).................................................................. 84,292
Prepaid expenses................................................................ 17,042
Dividends receivable............................................................ 13,702
Interest receivable............................................................. 362
------------
Total Assets.............................................................. 217,403,344
------------
LIABILITIES:
Payable for securities purchased................................................ 17,165,788
Borrowing under line of
credit (Note 5)............................................................... 14,000,000
Payable for Fund shares redeemed................................................ 922,131
Investment management fee
payable (Note 2).............................................................. 154,225
Distributor fee payable (Note 2)................................................ 92,861
Administration fee payable (Note 2)............................................. 32,597
Other accrued expenses and
liabilities................................................................... 168,651
------------
Total Liabilities......................................................... 32,536,253
------------
NET ASSETS...................................................................... $184,867,091
============
Net assets consist of:
Capital stock, $0.01 par value;
200,000,000 shares authorized,
12,842,466 shares issued
and outstanding (Note 4)...................................................... $ 128,425
Additional paid-in capital...................................................... 149,397,566
Accumulated net investment income............................................... 469,484
Accumulated realized gain
on investments - net.......................................................... 14,238,532
Unrealized appreciation on
investments - net............................................................. 20,633,084
------------
NET ASSETS...................................................................... $184,867,091
============
Net asset value and redemption
price per share............................................................... $ 14.39
============
Maximum offering price
per share..................................................................... $ 15.15
============
</TABLE>
The accompanying notes are an integral part of this statement.
- --------------------------------------------------------------------------------
THE NEW USA MUTUAL FUND
STATEMENT OF OPERATIONS
FOR THE YEAR ENDED JANUARY 31, 1996
- --------------------------------------------------------------------------------
<TABLE>
<S> <C>
INVESTMENT INCOME (NOTE 1):
Dividends (net of foreign withholding
tax of $ 4,300)............................................................... $ 341,003
Interest........................................................................ 304,563
Miscellaneous income............................................................ 5,099
-----------
650,665
-----------
EXPENSES:
Investment management fees (Note 2)............................................. 1,810,848
Distribution fees (Note 2)...................................................... 1,086,509
Transfer agent fees............................................................. 334,957
Administration fees (Note 2).................................................... 176,122
Custodian fees.................................................................. 160,051
Professional fees............................................................... 121,410
Amortization of deferred organization
expenses (Note 1)............................................................... 67,923
Directors' fees................................................................. 29,000
Reports to shareholders......................................................... 28,000
Registration fees............................................................... 22,717
Other expenses.................................................................. 140,082
-----------
Total expenses excluding
interest.................................................................... 3,977,619
Interest expense (Note 5)..................................................... 880,665
-----------
Total expenses................................................................ 4,858,284
-----------
Net investment loss............................................................. (4,207,619)
-----------
REALIZED AND UNREALIZED GAIN
(LOSS) ON SECURITIES, FUTURES
AND SHORT SALES TRANSACTIONS
(Notes 1 and 3):
Net realized gain (loss) from:
Securities transactions....................................................... 58,524,683
Futures transactions.......................................................... (165,035)
Short sales transactions...................................................... (1,507,483)
Change in unrealized appreciation on
investments - net............................................................. 12,032,523
-----------
Net realized and unrealized gain on
securities, futures and short
sales transactions............................................................ 68,884,688
-----------
NET INCREASE IN NET ASSETS
RESULTING FROM OPERATIONS..................................................... $64,677,069
===========
</TABLE>
The accompanying notes are an integral part of this statement.
<PAGE> 9
- --------------------------------------------------------------------------------
THE NEW USA MUTUAL FUND
STATEMENTS OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
YEAR ENDED YEAR ENDED
JANUARY 31, 1996 JANUARY 31, 1995
---------------- ----------------
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
FROM OPERATIONS:
Net investment loss....................................................... $ (4,207,619) $ (1,294,497)
Realized gain (loss) on securities, futures,
short sales and options transactions - net.............................. 56,852,165 (10,159,394)
Change in unrealized appreciation
on investments - net.................................................... 12,032,523 (13,335,797)
------------ ------------
Net increase (decrease) in net assets
resulting from operations............................................. 64,677,069 (24,789,688)
------------ ------------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net realized gain on securities, futures,
short sales and options transactions................................... (27,138,147) --
------------ ------------
FROM FUND SHARE TRANSACTIONS (NOTE 4):
Net proceeds from shares sold............................................. 12,165,690 14,368,662
Shares issued to shareholders in
reinvestment of distributions........................................... 24,126,151 --
Payments for shares redeemed.............................................. (59,079,462) (86,068,031)
------------ ------------
Net decrease in net assets from Fund share transactions................. (22,787,621) (71,699,369)
------------ ------------
Net increase (decrease) in net assets................................... 14,751,301 (96,489,057)
------------ ------------
NET ASSETS:
Beginning of year......................................................... 170,115,790 266,604,847
------------ ------------
End of year............................................................... $184,867,091 $170,115,790
============ ============
</TABLE>
The accompanying notes are an integral part of this statement.
<PAGE> 10
- --------------------------------------------------------------------------------
THE NEW USA MUTUAL FUND
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED JANUARY 31, 1996
- --------------------------------------------------------------------------------
<TABLE>
<S> <C>
CASH FLOWS PROVIDED BY (USED FOR) OPERATING ACTIVITIES:
Interest and dividends received .............................................. $ 885,716
Expenses paid ................................................................ (4,774,371)
---------------
Net cash used for operating activities....................................... (3,888,655)
---------------
CASH FLOWS PROVIDED BY (USED FOR) INVESTING ACTIVITIES:
Purchase of portfolio securities ............................................. (1,013,021,591)
Sales and maturities of portfolio securities.................................. 1,052,776,762
---------------
Net cash flows provided by investing activities ............................. 39,755,171
---------------
CASH FLOWS PROVIDED BY (USED FOR) FINANCING ACTIVITIES:
Proceeds from borrowings ..................................................... 147,260,000
Payments against borrowings .................................................. (133,260,000)
Dividends and distributions paid (excluding reinvestment of
dividends and distributions of $24,126,151) ................................. (3,011,996)
Proceeds from capital stock shares sold ...................................... 12,209,735
Cost of capital stock shares redeemed ........................................ (59,064,255)
---------------
Net cash flows used for financing activities ................................ (35,866,516)
---------------
NET DECREASE IN CASH ........................................................... --
CASH AT BEGINNING OF PERIOD .................................................... --
---------------
CASH AT END OF PERIOD .......................................................... $ --
===============
RECONCILIATION OF NET INCREASE
IN NET ASSETS RESULTING FROM OPERATIONS
TO NET CASH FLOWS USED FOR
OPERATING ACTIVITIES:
Net increase in net assets resulting from operations ........................... $ 64,677,069
Net realized gain on investments................................................ (56,852,165)
Increase in unrealized appreciation ............................................ (12,032,523)
Accretion of discount on short-term securities.................................. (32,818)
Decrease in interest and dividends receivable .................................. 267,869
Decrease in prepaid expenses.................................................... 61,470
Increase in accrued in expenses and other payables.............................. 22,443
---------------
Net cash used for operating activities........................................ $ (3,888,655)
===============
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:
Cash paid during the period for interest...................................... $ 880,665
===============
</TABLE>
The accompanying notes are an integral part of this statement.
<PAGE> 11
- --------------------------------------------------------------------------------
THE NEW USA MUTUAL FUND
FINANCIAL HIGHLIGHTS
SELECTED DATA FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
YEAR YEAR YEAR APRIL 29, 1992*
ENDED ENDED ENDED THROUGH
JANUARY 31, JANUARY 31, JANUARY 31, JANUARY 31,
1996 1995 1994 1993
---- ---- ---- ----
<S> <C> <C> <C> <C>
PER SHARE OPERATING
PERFORMANCE:
Net asset value, beginning of period.................. $ 11.63 $ 12.88 $ 13.20 $ 12.00
-------- -------- -------- --------
Income from investment operations:
Net investment loss.............................. (0.37) (0.15) (0.14) (0.01)
Net realized and unrealized gain (loss) on
securities, futures, short sales and options
transactions.................................... 5.54 (1.10) 1.27 1.21
-------- -------- -------- --------
Total from investment operations...................... 5.17 (1.25) 1.13 1.20
Less distributions to shareholders from:
Net realized gain on securities, futures,
short sales and options transactions............ (2.41) -- (1.45) --
-------- -------- -------- --------
Total distributions................................... (2.41) -- (1.45) --
-------- -------- -------- --------
Net asset value, end of period........................ $ 14.39 $ 11.63 $ 12.88 $ 13.20
======== ======== ======== ========
TOTAL INVESTMENT RETURN (a)........................... 44.61% (9.70)% 8.92% 10.00% (b)
RATIOS AND SUPPLEMENTAL DATA:
Ratio of interest expense to average net assets ...... 0.49% -- -- --
Ratio of distribution fees to average net assets...... 0.60% 0.61% 0.51% 0.56% (c)
Ratio of net expenses (excluding interest expense
and distribution fees) to average net assets..... 1.60% 1.51% 1.60% 1.65% (c)
-------- -------- -------- --------
Ratio of net expenses to average net assets .......... 2.69% 2.12% 2.11% 2.21% (c)(d)
======== ======== ======== ========
Ratio of net investment loss to average net assets ... (2.32)% (0.63)% (1.02)% (0.18)%(c)(d)
Borrowings, end of period (000's)..................... $ 14,000 -- -- --
Average amount of borrowings outstanding
during the period (000's)........................ $ 15,748 (e) -- -- --
Average number of shares outstanding
during the period (000's)........................ 12,379 (e) -- -- --
Average amount of borrowings per
share during the period.......................... $ 1.27 (e) -- -- --
Portfolio turnover rate............................... 525.28% 344.45% 395.15% 280.66%
Net assets, end of period (000's)..................... $184,867 $170,116 $266,605 $295,590
- -------------------------------------------------------------------------------------------------------------------
</TABLE>
* Commencement of operations.
(a) Assumes investment at the net asset value at the beginning of the period,
reinvestment of all dividends and distributions, a complete redemption of
the investment at the net asset value at the end of the period and no
sales charge. Total return would be reduced if a sales charge were taken
into account.
(b) Non-annualized.
(c) Annualized.
(d) For the period April 29, 1992 through January 31, 1993, the Manager
reimbursed expenses in the amount of $254,725. Had the Manager not
reimbursed expenses for that period the annualized ratio of net operating
expenses to average net assets and the annualized ratio of net investment
loss to average net assets would have been 2.35% and (0.31)%,
respectively.
(e) Averages computed on a weighted average daily basis.
The accompanying notes are an integral part of this statement.
<PAGE> 12
- --------------------------------------------------------------------------------
THE NEW USA MUTUAL FUND
NOTES TO FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
1. SIGNIFICANT ACCOUNTING POLICIES
New USA Mutual Funds, Inc. (the "Company"), a Maryland corporation, was
organized on December 30, 1991 as a diversified, open end management investment
company registered under the Investment Company Act of 1940, as amended. The
Company has established one fund series to date: The New USA Mutual Fund (the
"Fund"), which commenced operations on April 29, 1992. O'Neil Data Systems, Inc.
is the parent company of William O'Neil + Co. Incorporated (WON + Co.) (the
Fund's "Distributor") and New USA Research & Management Co. (the Fund's
"Manager"). The Fund seeks capital growth by investing under normal market
conditions the majority of its assets in common stock of companies that are
exhibiting accelerating earnings growth and are expected to continue to achieve
superior growth in earnings and/or revenues.
The following is a summary of significant accounting policies followed by
the Fund.
Investment Valuation: Portfolio securities listed on national securities
exchanges are valued at the last sale price on the business day as of which such
value is being determined or, lacking any sales, at the closing bid price on
such day. Portfolio securities traded in the over-the-counter market are valued
at the current or last bid price. If no bid is quoted on such day, the security
is valued by such method as the Board of Directors of the Company shall
determine in good faith to reflect the security's fair value. Index options are
valued at the last sale price or, in the absence of a sale, the last bid price.
Short-term debt securities having a maturity of 60 days or less from the
valuation date are valued at amortized cost which approximates market value.
Portfolio securities for which market quotations are not readily available are
valued as determined in good faith by or under the direction of the Board of
Directors.
Index Futures Contracts: The Fund may purchase or sell index futures contracts
for the purpose of hedging the market risk on existing portfolio holdings or the
intended purchase of securities. Futures contracts are contracts to buy or sell
units of an index at a specified date at a price agreed upon when the contract
is made. Upon entering into a contract, the Fund deposits with its custodian or
broker an amount of "initial margin" of cash and liquid assets to guarantee
delivery and payment of the futures contract. Subsequent payments to and from
the broker, called "variation margin", are made on a daily basis as the value of
the contract fluctuates. Such receipts or payments are recorded by the Fund as
unrealized gains or losses. When the contract is closed or expires, the Fund
records 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 or
expired. Risks of entering into futures contracts include the possibility that a
change in the value of the contract may not correlate with the changes in the
value of the underlying securities. As of January 31, 1996, there were no
futures contracts held.
Options on Indices: The Fund may purchase call and put options on any securities
indices for hedging purposes only. To hedge the Fund's portfolio against a
decline in value, the Fund may buy puts on stock indices; to hedge against
increases in equity price pending investment in additional equities, the Fund
may buy calls on stock indices. Upon the purchase of a call option or a
protective put option by the Fund, the premium paid is recorded as an
investment, and subsequently marked-to-market to reflect the current market
value of the option. If an option which the Fund has purchased expires on the
stipulated expiration date, the Fund will realize a loss in the amount of the
cost of the option. If the Fund enters into a closing sale transaction, the Fund
will realize a gain or loss, depending on whether the sale proceeds from the
closing sale transaction are greater or less than the cost of the option. If the
Fund exercises a purchased call or put option, the Fund will realize a gain or
loss based on the change in the value of the index. As of January 31, 1996,
there were no options contracts held.
Short Sales: The Fund may engage in short sale transactions. A short sale is
effected when it is believed that the price of a particular security will
decline, and involves the sale of a security which the Fund does not own in the
hope of purchasing the same security at a later date at a lower price. To make
delivery to the buyer, the Fund must borrow
<PAGE> 13
the security. The Fund is then obligated to return the security to the lender,
and therefore must subsequently purchase the same security. Upon entering into a
short sale, the Fund must leave the proceeds from the short sale with the
broker, and must also deposit with the broker a certain amount of cash or U.S.
Government securities to collateralize its obligation to replace the borrowed
securities which have been sold. In addition, the Fund must deposit cash or U.S.
Government securities as collateral in a segregated account with its custodian
in an amount such that the value of both collateral deposits is at all times
equal to 100% of the current market value of the securities sold short. If the
price of the security sold short increases between the time of the short sale
and the time the Fund replaces the borrowed security, the Fund will incur a
capital loss, and if the price declines during this period, the Fund will
realize a capital gain. The Fund may also sell securities short "against the
box" in which it owns, or has the right to acquire at no additional cost,
securities identical to those sold short. As of January 31, 1996, there were no
open short sales.
Security Transactions and Investment Income: Security transactions are recorded
on the dates the transactions are entered into (the trade dates). Realized gains
and losses on security transactions are determined on the identified cost basis.
Dividend income is recorded on the ex-dividend date. Interest income is
determined on the basis of interest accrued, premium amortized and discount
earned.
Dividends and Distributions to Shareholders: The Fund records all distributions
to shareholders from net investment income and realized gains on the ex-dividend
date. Such distributions are determined in conformity with income tax
regulations which may differ from the generally accepted accounting principles.
These differences are primarily due to differing treatments for losses deferred
due to wash sales and excise tax regulations.
Federal Income Taxes: It is the Fund's policy to comply with the special
provisions of Subchapter M of the Internal Revenue Code applicable to regulated
investment companies. As provided therein, in any fiscal year in which the Fund
so qualifies and distributes at least 90% of its taxable income, the Fund (but
not the shareholders) will be relieved of Federal income tax on the income
distributed. Accordingly, no provision for income taxes has been made. In order
to avoid imposition of the excise tax applicable to regulated investment
companies, it is also the Fund's intention to declare as dividends in each
calendar year at least 98% of its net investment income and 98% of its net
realized capital gains plus undistributed amounts from prior years.
Deferred Organization Expenses: Expenses of organization have been capitalized
and are being amortized on a straight-line basis over five years.
Repurchase Agreements: A repurchase agreement is an instrument under which the
purchaser acquires a security but agrees at the time of purchase to sell back
the security to the seller at an agreed-upon date, price and interest rate. It
is the policy of the Fund that the custodian takes possession of the underlying
collateral securities. Collateral is marked-to-market daily to ensure that the
market value of the underlying assets, including accrued interest is at least
equal to the value of the seller's repurchase obligation. In the event of a
bankruptcy or other default of the seller of a repurchase agreement, the Fund
could experience both delays in liquidating the underlying securities and
losses. These losses would equal the contract value of the repurchase agreement
and accrued interest, net of any proceeds received in liquidation of the
underlying securities. To minimize the possibility of loss, the Fund enters into
repurchase agreements only with commercial banks and registered broker/dealers
deemed to be creditworthy by the Manager and only with respect to obligations of
the U.S. government or its agencies. Refer to the Fund's Schedule of Investments
for the contract value of repurchase agreements and accrued interest as of
January 31, 1996.
Use of Estimates: The preparation of these financial statements in accordance
with generally accepted accounting principles incorporates estimates made by
management in determining the reported amounts of assets, liabilities, revenues,
and expenses of the Fund.
2. AGREEMENTS WITH AFFILIATES AND OTHER PARTIES
Under the terms of the Investment Management Agreement (the
<PAGE> 14
"Management Agreement") between the Fund and the Manager, the Manager has agreed
to provide investment management and advisory services, subject to the policies
and control of the Board of Directors. The Management Agreement also requires
the Manager to provide the Fund with office space and certain administrative
services and provide the personnel needed by the Fund with respect to the
Manager's responsibilities under the Management Agreement with the Fund. For
these services and facilities, the Fund pays the Manager a management fee,
computed and accrued daily and paid monthly, based upon the average daily net
assets of the Fund at the following annual rates: 1% on the first $500 million
of net assets and 0.75% on net assets exceeding $500 million.
Certain states in which shares of the Fund are qualified for sale impose
limitations on expenses (including management fees) of the Fund. The most
restrictive annual expense limitation requires that the Manager reimburse the
Fund to the extent that expenses exceed 2.5% of the Fund's first $30 million of
average net assets, 2.0% of the Fund's next $70 million of average net assets,
and 1.5% of the average net assets in excess of $100 million, subject to a
formula that permits the Fund to exclude certain expenses from that calculation.
There was no reimbursement of expenses by the Manager for the year ended January
31, 1996.
Any deferrals made by the Manager in its fees and any payments by the
Distributor of Rule 12b-1 expenses are subject to recoupment or reimbursement by
the Fund within the following three fiscal years, provided the Fund is able to
effect such recoupment or reimbursement and remain in compliance with applicable
expense limitations, provided the Manager is still at that time serving in such
capacity and provided the payment of such expenses (or the recoupment of such
fee) would not affect the Fund's tax status or otherwise have an adverse tax
impact on the Fund or its shareholders.
The Fund has adopted a Distribution Plan (the "Plan") pursuant to Rule
12b-1 under the Investment Company Act of 1940. The purpose of the Plan is to
permit the Fund to compensate the Distributor for services provided and expenses
incurred by it in promoting the sale of shares of the Fund, reducing
redemptions, or maintaining or improving services provided to shareholders by
the Distributor or dealers. The Plan provides for monthly payments by the Fund
to the Distributor, subject to the authority of the Fund's Board of Directors to
reduce the amount of payments or to suspend the Plan for such periods as they
may determine. The amount of any such reimbursement by the Fund is limited under
the Plan to 0.25% for service fees and 0.75% for all other permissible
distribution expenses of the Fund's average net assets annually, and is also
subject to state expense limitations.
The Distributor acts as the Fund's principal underwriter in a continuous
public offering of the Fund's shares. For the year ended January 31, 1996, the
Distributor earned $54,744 in underwriting and broker commissions on sales of
the Fund's shares. Additionally, the Distributor earned $355,695 in soft dollar
commissions as broker on trades of portfolio securities for the year ended
January 31, 1996.
The Fund has entered into an Administration Agreement with State Street
Bank and Trust Company (the Fund's "Administrator") dated May 1, 1993. The
Administrator performs, or arranges for the performance of, certain
administrative services for the Fund, including maintaining the books and
records of the Fund, and preparing certain reports and other documents required
by federal and/or state laws and regulations. For these services, the Fund pays
the Administrator a fee at an annual rate of 0.08% of the Fund's average daily
net assets up to $125 million, 0.04% of the next $125 million, and 0.02% of
those assets in excess of $250 million, subject to certain minimum requirements.
Effective June 1, 1995, these fees were changed to 0.10% of the Fund's average
daily net assets up to $125 million, 0.08% on the next $125 million, and 0.04%
of those assets in excess of $250 million.
Certain officers and/or directors of the Fund are officers and/or directors
of O'Neil Data Systems, Inc., WON + Co. and/or New USA Research &
Management Co.
3. INVESTMENT TRANSACTIONS
Purchases and proceeds from sales of investments,
<PAGE> 15
excluding short-term securities, for the year ended January 31, 1996, were
$989,492,396 and $1,005,733,890, respectively. As of January 31, 1996, net
unrealized appreciation for Federal income tax purposes aggregated $18,640,321
of which $20,298,394 related to appreciated securities and $1,658,073 related to
depreciated securities. The aggregate cost of investments at January 31, 1996
for Federal income tax purposes was $188,340,990.
4. FUND SHARE TRANSACTIONS
Proceeds and payments of Fund shares as shown in the Statements of Changes
in Net Assets are the result of the following share transactions:
<TABLE>
<CAPTION>
YEAR ENDED YEAR ENDED
JANUARY 31, JANUARY 31,
1996 1995
----------- -----------
<S> <C> <C>
Shares sold.................................................. 809,986 1,186,780
Shares reinvested from
distributions............................................. 1,691,876 --
Less shares
redeemed.................................................. (4,283,992) (7,253,546)
--------- ---------
Net decrease
in shares
outstanding............................................... (1,782,130) (6,066,766)
========= =========
</TABLE>
5. LINE OF CREDIT
The Fund established a revolving line of credit with First Interstate Bank,
enabling the Fund to borrow up to $30,000,000 with interest at either the prime
rate minus 2% or the bank's adjusted cost of funds rate plus three-fourths of
one percent (0.75%). In addition, the Fund is required to pay an annual fee of
0.125% of the unused portion on a quarterly basis. The average daily loan
balance was $15,747,789, at a weighted average interest rate of 6.87%. The
maximum loan outstanding during the year ended January 31, 1996 was $29,400,000.
6. CERTAIN RECLASSIFICATIONS
In accordance with Statement of Position 93-2, the Fund has reclassified
$781,106 from accumulated net investment income to additional paid-in capital.
The Fund has also reclassified $5,458,209 from accumulated realized gain on
investments-net to accumulated net investment income. These reclassifications
have no impact on the net asset value of the Fund and are designed to present
the Fund's capital accounts on a tax basis.
<PAGE> 16
- --------------------------------------------------------------------------------
REPORT OF INDEPENDENT PUBLIC ACCOUNTANTS
- --------------------------------------------------------------------------------
To the Shareholders and Board of Directors of The New USA Mutual Fund:
We have audited the accompanying statement of assets and liabilities of
The New USA Mutual Fund (a portfolio constituting the New USA Mutual Funds,
Inc.), including the schedule of investments, as of January 31, 1996, and the
related statements of operations and cash flows for the year then ended, and the
statement of changes in net assets and the financial highlights for each of the
periods presented. These financial statements and the financial highlights are
the responsibility of the Fund's management. Our responsibility is to express an
opinion on these financial statements and the financial highlights based on our
audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements and the 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. Our procedures included confirmation of securities owned as of
January 31, 1996 by correspondence with the custodian and brokers and the
application of alternative procedures, when confirmations were not received from
brokers. 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 New USA Mutual Fund as of January 31, 1996, the results of its
operations and its cash flows for the year then ended, the changes in its net
assets and the financial highlights for the periods presented in conformity with
generally accepted accounting principles.
Arthur Andersen LLP
Boston, Massachusetts
March 6, 1996
<PAGE> 17
- --------------------------------------------------------------------------------
THE NEW USA MUTUAL FUND
ADDITIONAL INFORMATION (UNAUDITED)
- --------------------------------------------------------------------------------
If certain requirements are met, 1.83% of the ordinary distributions paid by The
New USA Mutual Fund during 1995 qualifies for the deduction for dividends paid
available to corporate shareholders only, pursuant to Internal Revenue Code
Section 243. Corporate shareholders should consult their tax advisor to
determine if they qualify for this deduction.
<PAGE> 18
NEW USA MUTUAL FUNDS, INC.
DIRECTORS AND OFFICERS
William J. O'Neil Chairman of the Board, Chief
Executive Officer and Director
Jerry Dackerman Director
James H. Macklin Director
Jong S. Park, M.D. Director
Fredrick M. Russo, M.D. Director
Lewis H. Stanton Director
Margaret R. Harries Senior Vice President and Secretary
David Ryan Senior Vice President
Natalie D. Carter Chief Financial Officer
- ------------------------------------------------------------------------
Investment Manager New USA Research & Management Co.
12655 Beatrice Street
Los Angeles, California 90066
Distributor New USA Mutual Funds Distributor
A Division of
William O'Neil + Co. Incorporated
12655 Beatrice Street
Los Angeles, California 90066
Administrator State Street Bank and Trust Company
1776 Heritage Drive
North Quincy, Massachusetts 02171
Transfer Agent State Street Bank and Trust Company
1776 Heritage Drive
North Quincy, Massachusetts 02171
Auditors Arthur Andersen LLP
One International Place
Boston, Massachusetts 02110
Legal Counsel Gibson, Dunn & Crutcher
333 South Grand Avenue
Los Angeles, California 90071
This report is not authorized for use as an offer of sale or a solicitation of
an offer to buy shares of the Fund unless accompanied or preceded by the Fund's
current prospectus. Past performance results shown in this report should not be
considered a representation of future performance. Investment return and
principal value of shares, when redeemed, may be worth more or less than their
original cost.
NEW USA MUTUAL FUNDS, INC.
1-800-222-2872
NEW USA MUTUAL FUNDS, INC.
THE NEW USA MUTUAL FUND
--------
ANNUAL REPORT
--------
JANUARY 31, 1996
