SAN ANTONIO EXPRESS-NEWS
SERVING SOUTH TEXAS SINCE 1865
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FRIDAY, MAY 24, 1996 Final Edition .50 cents
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BONNEL'S STAR KEEPS RISING
BY DAVID HENDRICKS
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When United Services Advisors over a three-to-five-year period." substantial stock ownership by
Chairman and Chief Executive Bonnel was referring to both company management.
Frank Holmes announced in 1994 his time with the Bonnel Growth If companies pass those tests,
the start of a fund based on a Fund and his previous manager "they are focused on making
star portfolio manager -- instead experience with MIM Funds that no quality products and getting them
of a concept or investment longer exist. He operates the out to market and have the time
sector -- Holmes also should Bonnel fund from his hometown, to focus on enhancing
have predicted the fund would Reno, Nev. During a San Antonio shareholder value. It tends to
earn close to a 60 percent visit Thursday, Bonnel, 50, work," Bonnel said.
annual yield within two years. updated his fund's strategy and The stock market has been
That probably would not have current asset allocation. driven this year so far by an
been legal, but Holmes would Bonnel presently invests in astonishing inflow of more than
have been right. The star 111 stocks. Half the portfolio is $105 billion into stock mutual
portfolio manager, Art Bonnel, in technology issues, mainly funds. Bonnel said he believes
has lived up to his billing, having software, telecommunications and that pace will continue.
been given a mutual fund bearing disk storage companies. Another "There's always a chance of a
his name, the Bonnel Growth 30 percent is invested in health, selloff, but most people are
Fund, which was activated Oct. including Merck, and retail, saying, 'Oh good. If we get a
17, 1994. including Sears and Men's selloff, I'm going to buy some
The fund is marketed and sold Warehouse. more,'" Bonnel said.
by San Antonio-based United The remainder is invested in "There's a change of mentality
Services Advisors, to be renamed miscellaneous categories, in the market. Whenever there's
U.S. Global Investors, Inc., including Action Performance, any correction, people take
effective June 1. which makes race-car replicas, advantage of it," Bonnel added.
The fund closed Thursday at Safeway grocery chain and Investors also win just by
$18.20 per share. On May 30, Clorox. staying in stocks. "Market timers
1995, it was $11.46. Year-to- The fund holdings are basically are losing money. They way
date, the fund is up 30.47 divided equally in thirds among underperform the market,"
percent. The last 12 months small-capitalization companies, Bonnel said. "They sell out, and
have produced a 59.1 percent mid-cap stocks and large-cap equities. it goes up again the next day. I
total return. He screens companies through think market timers must be the
"I've beaten the S&P (Standard a highly defined, four-step most frustrated people in the
& Poor's 500 index) seven years examination: increasing earnings, a world right now."
in a row," Bonnel said Thursday. 2-to-1 ratio of current assets to
"It takes a lot of time. I work current liabilities, debt of less
hard to beat it. Only about 3 to 5 than 15 percent of capital and
percent of fund managers beat
the S&P 500
FOR MORE INFORMATION, INCLUDING CHARGES AND EXPENSES, CALL 1-800-4-BONNEL (1-800-426-6635). PLEASE READ THE
PROSPECTUS CAREFULLY BEFORE INVESTING. INVESTMENT RETURNS AND PRINCIPAL VALUE MAY VARY, AND YOU MAY HAVE A GAIN OR A
LOSS WHEN YOU SELL SHARES. AVERAGE ANNUAL TOTAL RATE OF RETURN FOR 1 YEAR PERIOD ENDED 5/30/96, 28.60%.
AVERAGE ANNUAL TOTAL RATE OF RETURN FOR LIFE OF THE FUND (10/17/94 THROUGH 5/30/96), 48.02%. PAST PERFORMANCE IS NO GUARANTEE
OF FUTURE RESULTS. US STANDS FOR "UNITED SERVICES." THIS REPRINT IS NOT A SOLICITATION FOR ANY FUNDS LISTED HEREIN.
Reprinted by permission of SAN ANTONIO EXPRESS-NEWS, "Serving South Texas since 1865" (c) Copyright 1996.
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