U.S. GLOBAL ACCOLADE FUNDS
ADRIAN DAY
GLOBAL OPPORTUNITY FUND
1-800-US-FUNDS (1-800-873-8637)
(INFORMATION, SHAREHOLDER SERVICES AND REQUESTS)
INTERNET: HTTP://WWW.USFUNDS.COM
PROSPECTUS
FEBRUARY 20, 1997
AMENDED MARCH 10, 1997
This prospectus presents information that a prospective investor should know
about the Adrian Day Global Opportunity Fund (the "Fund"), a diversified series
of U.S. Global Accolade Funds (the "Trust"), formerly Accolade Funds. The Trust
is an open-end management investment company. Investors are responsible for
determining whether or not an investment in the Fund is appropriate for their
needs. Read and retain this prospectus for future reference.
A Statement of Additional Information dated February 20, 1997, has been filed
with the Securities and Exchange Commission and is incorporated herein by
reference. The Statement is available free from U.S. Global Accolade Funds by
calling 1-800-US-FUNDS (1-800-873-8637).
THESE SECURITIES HAVE NOT BEEN APPROVED OR DISAPPROVED BY THE SECURITIES AND
EXCHANGE COMMISSION OR ANY STATE SECURITIES COMMISSION NOR HAS THE
SECURITIES AND EXCHANGE COMMISSION OR ANY STATE SECURITIES COMMISSION
PASSED UPON THE ACCURACY OR ADEQUACY OF THIS PROSPECTUS. ANY
REPRESENTATION TO THE CONTRARY IS A CRIMINAL OFFENSE.
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TABLE OF CONTENTS
SUMMARY OF FEES AND EXPENSES......... 2
INVESTMENT OBJECTIVES AND
PRACTICES............................ 3
OTHER INVESTMENT PRACTICES........... 4
RISK FACTORS......................... 7
HOW TO PURCHASE SHARES............... 9
HOW TO EXCHANGE SHARES............... 12
HOW TO REDEEM SHARES................. 14
HOW SHARES ARE VALUED................ 19
DIVIDENDS AND TAXES.................. 20
THE TRUST............................ 21
MANAGEMENT OF THE FUND............... 22
DISTRIBUTION EXPENSE PLAN............ 24
PERFORMANCE INFORMATION.............. 24
SUMMARY OF FEES AND EXPENSES
The following summary is provided to assist you in understanding the various
costs and expenses a shareholder in the Fund could bear directly or indirectly.
SHAREHOLDER TRANSACTION EXPENSES
Maximum Sales Load.............. None
Redemption Fee.................. None
Administrative Exchange Fee..... $ 5
Account Closing Fee (does not
apply to exchanges)........... $10
Trader's Fee (shares held less
than 30 days)................. 1.00%
ANNUAL FUND OPERATING EXPENSES
(AS A PERCENTAGE OF AVERAGE NET
ASSETS)(1)
Management Fees................. 1.25%
12b-1 Fees...................... 0.25%
Other Expenses, including
Transfer Agency
and Accounting Services
Fees.......................... 1.00%
Total Fund Operating Expenses... 2.50%
Except for active ABC Investment Plan(R) accounts, custodial accounts for minors
and retirement accounts, if an account balance falls, for any reason other than
market fluctuations, below $5,000 anytime during a month, that account will be
subject to a monthly small account charge of $1 which will be payable quarterly.
See SMALL ACCOUNTS.
A shareholder who requests delivery of redemption proceeds by wire transfer will
be subject to a $10 charge. International wires will be higher.
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HYPOTHETICAL EXAMPLE OF EFFECT OF FUND EXPENSES(1):
You would pay the following expenses on a $1,000 investment, assuming a 5%
annual return and redemption at the end of each period.
1 year............................... $ 35
3 years.............................. $ 88
The Hypothetical Example is based upon the Fund's estimated expenses which are
expected to decline as the Fund's net assets increase. In conformance with SEC
regulations, the example is based upon a $1,000 investment; however, the Fund's
minimum investment is $5,000. In practice, a $1,000 account would be assessed a
monthly $1.00 small account charge which is not reflected in the example. See
SMALL ACCOUNTS. Included in these estimates is the account closing fee of $10
for each period. This fee is a flat charge which does not vary with the size of
your investment. Accordingly, for investments larger than $1,000, your total
expenses will be substantially lower in percentage terms than the illustration
implies. The example should not be considered a representation of future
expenses. Actual expenses may be more or less than those shown.
INVESTMENT OBJECTIVES AND PRACTICES
The Fund's investment objective is long-term growth of capital. The Fund seeks
to achieve this objective by investing throughout the world in a diversified
portfolio consisting primarily (80% of total assets during normal market
conditions) of marketable common stocks and in securities convertible into
common stocks of global (both international and domestic) blue chip corporations
that the Sub-Advisor believes the market has undervalued.
The Fund is committed to flexible value investing, searching for common stocks
that are selling at substantial discounts to the underlying value of their
assets, earning power, or private market value. Taking a global approach, the
Fund searches for value investments around the world. The Fund seeks first to
build and maintain core investments in the common stock of international blue
chip companies that are well capitalized and well managed and enjoy strong
balance sheets and brand-name recognition in their own markets. The Sub-Advisor
believes such companies are poised to grow and prosper with the continued
development of consumer markets around the world. Supplementing these core
investments, the Fund has the flexibility to purchase a wide variety
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(1) Annual Fund Operating Expenses are based on the Funds estimated expenses.
Management Fees, Transfer Agency Fees, and Accounting Services Fees are paid to
U.S. Global Investors, Inc. (the "Advisor") and its wholly-owned subsidiaries.
The Advisor then pays a part of the management fee to Global Strategic
Management, Inc. (the "Sub-Advisor") for serving as sub-advisor. Please refer to
the section entitled MANAGEMENT OF THE FUNDS for further information.
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of investments that appear to the Sub-Advisor to offer value at any particular
time. The Sub-Advisor searches for a variety of unrecognized contrarian
investments, including at any given time, securities issued by smaller, lesser
known companies, new companies, and companies operating in emerging markets. The
Fund may also invest in debt securities (although income is an incidental
consideration) including high yield or junk bonds, convertible securities, and
commodity-linked securities.
Under normal market conditions the Fund will invest primarily (up to 100% of its
assets) in foreign securities, although investments in United States securities
are permitted and will be emphasized when the Sub-Advisor believes that
opportunities in the United States markets appear more attractive. When deemed
appropriate by the Fund's Sub-Advisor for short-term investment or defensive
purposes, the Fund may hold a portion of its assets (up to 100%) in short-term
debt instruments including commercial paper, certificates of deposit, or
repurchase agreements.
The Fund is not intended to be a complete investment program, and there is no
assurance that its investment objective can be achieved. The Fund's investment
objective is not a fundamental policy and may be changed by the Board of
Trustees without shareholder approval. However, shareholders will be notified in
writing at least thirty days prior to any material change in the Fund's
investment objective. Unless otherwise indicated, all investment practices and
limitations of the Fund are nonfundamental policies that may be changed by the
Board of Trustees without shareholder approval.
OTHER INVESTMENT PRACTICES
As a fundamental policy that cannot be changed without a vote of shareholders:
(a) the Fund may not invest more than 25% of its total assets in securities
of companies principally engaged in any one industry (other than
obligations issued or guaranteed by the United States Government or any of
its agencies or instrumentalities);
(b) with respect to 75% of its total assets, the Fund will not: (i) invest
more than 5% of the value of its total assets in the securities of any one
issuer (except such limitation will not apply to obligations issued or
guaranteed by the United States Government, its agencies or
instrumentalities); nor (ii) acquire more than 10% of the outstanding
voting securities of any one issuer;
(c) the Fund may lend portfolio securities with an aggregate market value
of not more than one-third of the Fund's total net assets;
(d) the Fund may borrow up to 33 1/3% of the amount of its total assets
(reduced by the amount of all liabilities and indebtedness other than such
borrowings) when deemed desirable or appropriate to effect redemptions,
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provided, however, that the Fund will not purchase additional securities
while borrowings exceed 5% of the Funds total assets.
PORTFOLIO TURNOVER
It is the policy of the Fund to seek long-term growth of capital. The Fund will
effect portfolio transactions without regard to its holding period if, in the
judgment of the Advisor and Sub-Advisor, such transactions are in the best
interests of the Fund. Increased portfolio turnover may result in higher costs
for brokerage commissions, dealer mark-ups and other transaction costs and may
also result in taxable capital gains. Certain tax rules may restrict the Fund's
ability to engage in short-term trading if the security has been held for less
than three months. See PORTFOLIO TURNOVER in the Statement of Additional
Information.
PORTFOLIO TRANSACTIONS
In executing portfolio transactions and selecting brokers or dealers, the Fund
seeks the best overall terms available. In assessing the terms of a transaction,
consideration may be given to various factors, including the breadth of the
market in the security, the price of the security, the financial condition and
execution capability of the broker or dealer (for a specified transaction and on
a continuing basis), the reasonableness of the commission, if any, and the
brokerage and research services provided. Under the Advisory and Sub-Advisory
agreements, the Advisor and Sub-Advisor are permitted, in certain circumstances,
to pay a higher commission than might otherwise be obtained in order to acquire
brokerage and research services. The Advisor and Sub-Advisor must determine in
good faith, however, that such commission is reasonable in relation to the value
of the brokerage and research services provided -- viewed in terms of that
particular transaction or in terms of all the accounts over which investment
discretion is exercised. In such case, the Board of Trustees will review the
commissions paid by the Fund to determine if the commissions paid over
representative periods of time were reasonable in relation to the benefits
obtained. The advisory fee of the Advisor will not be reduced by reason of its
receipt of such brokerage and research services. To the extent that any research
services of value are provided by broker-dealers through or with whom the Fund
places portfolio transactions, the Advisor or Sub-Advisor may be relieved of
expenses which they might otherwise bear.
REPURCHASE AGREEMENTS
The Fund may invest a portion of its assets in repurchase agreements with
domestic broker-dealers, banks and other financial institutions, provided the
Fund's custodian always has possession of securities serving as collateral or
has evidence of book entry receipt of such securities. In a repurchase
agreement, the Fund purchases securities subject to the seller's agreement to
repurchase such securities at a specified time (normally one day) and price. The
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repurchase price reflects an agreed-upon interest rate during the time of
investment. All repurchase agreements must be collateralized by United States
Government or government agency securities, the market values of which equal or
exceed 102% of the principal amount of the repurchase obligation. If an
institution enters an insolvency proceeding, the resulting delay in liquidation
of securities serving as collateral could cause the Fund some loss if the value
of the securities declined prior to liquidation. To minimize the risk of loss,
the Fund will enter into repurchase agreements only with institutions and
dealers which the Board of Trustees consider creditworthy.
STRATEGIC TRANSACTIONS
The Fund may, but is not required to, use various other investment strategies as
described below. Such strategies are generally accepted as modern portfolio
management techniques and are regularly used by many mutual funds and other
institutional investors. Techniques and instruments may change over time as new
instruments and strategies are developed or regulatory changes occur.
In the course of pursuing these investment strategies, the Fund may purchase and
sell exchange-listed and over-the-counter put and call options on securities,
equity and fixed-income indices and other financial instruments, financial
futures contracts and options thereon, and may enter into various currency
transactions such as currency forward contracts, currency futures contracts, or
options on currencies or currency futures (collectively, all the above are
called "Strategic Transactions"). The Fund will not sell put options except in
closing transactions.
The Fund may engage in Strategic Transactions for hedging, risk management, or
portfolio management purposes and not for speculation. Strategic Transactions
may be used to attempt to protect against possible changes in the market value
of securities held in, or to be purchased for, the Fund's portfolio. Such
changes may result from securities markets or currency exchange rate
fluctuations. Strategic Transactions may also be used to attempt to protect the
Fund's unrealized gains or prevent losses in the value of its portfolio
securities, or to establish a position using Strategic Transactions as a
temporary substitute for purchasing or selling particular securities. See
INVESTMENT OBJECTIVES AND POLICIES -- RISK CONSIDERATIONS OF THE FUND in the
Statement of Additional Information. The ability of the Fund to use these
Strategic Transactions successfully will depend upon the Sub-Advisor's ability
to predict pertinent market movements, which cannot be assured. The Fund will
comply with applicable regulatory requirements when it engages in Strategic
Transactions.
LENDING OF PORTFOLIO SECURITIES
The Fund may lend securities to broker-dealers or institutional investors for
their use in connection with short sales, arbitrages and other securities
transactions. The Fund may receive a fee from broker-dealers for lending its
portfolio
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securities. The Fund will not lend portfolio securities unless the loan is
secured by collateral (consisting of any combination of cash, United States
Government securities or irrevocable letters of credit) in an amount at least
equal (on a daily marked-to-market basis) to the current market value of the
securities loaned. In the event of a bankruptcy or breach of agreement by the
borrower of the securities, the Fund could experience delays and costs in
recovering the securities loaned. The Fund will not enter into securities
lending agreements unless its custodian bank/lending agent will fully indemnify
the Fund against loss due to borrower default. The Fund may not lend securities
with an aggregate market value of more than one-third of the Fund's total net
assets.
RISK FACTORS
The Fund is designed for long-term value investors who can accept international
investment risk. The Fund's share price will tend to reflect the movements of
the different securities markets in which it is invested and, unless hedged, the
foreign currencies in which investments are denominated.
Because the Fund's investments will be subject to the market fluctuations and
risks inherent in all investments, there can be no assurance that the Fund's
stated objective will be realized. The Fund's Advisor and Sub-Advisor will seek
to minimize these risks through professional management and investment
diversification. As with any long-term investment, the value of shares when sold
may be higher or lower than when purchased.
MARKET RISK
Investments in equity and debt securities are subject to inherent market risks
and fluctuations in value due to earnings, economic conditions, quality ratings
and other factors beyond the control of the Advisor or Sub-Advisor. As a result,
the return and net asset value of the Fund will fluctuate.
The Fund may purchase common stock of small and medium size companies which may
be unseasoned and which often fluctuate in price more than common stocks of
larger, more mature companies.
Debt securities, including investment grade and high yield bonds, are also
subject to price fluctuations based on changes in the level of interest rates,
which will generally result in these securities changing in price in the
opposite direction. That is, these securities will experience appreciation when
interest rates decline and will depreciate when interest rates rise.
FOREIGN INVESTMENTS
While investment by the Fund on an international basis will permit shareholders
to participate in economic developments abroad, such investments involve certain
risks not ordinarily associated with investing in securities of United
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States issuers. These risks may include political instability of some foreign
governments, fluctuation in foreign exchange rates, the imposition of exchange
control regulations, the possibility of expropriation decrees, more limited
information about foreign issuers, different accounting standards, higher
brokerage costs and foreign withholding taxes. Moreover, foreign securities and
their markets may not be as liquid as U.S. securities and their markets.
To the extent the Fund's investments are denominated in and pay interest or
dividends in foreign currencies, and to the extent that the Fund's currency
exposure is unhedged, the value of their investment by the Fund, as measured in
U.S. dollars, may be affected either favorably or unfavorably by movements in
exchange rates between the dollar and those foreign currencies. For more
detailed information see FOREIGN SECURITIES in the Statement of Additional
Information.
EMERGING MARKETS
The Fund may invest up to 15% of its assets in emerging markets, but not more
than 5% of its assets in any single country considered to be part of the
emerging market. Any company with a market capitalization of $500 million or
more is excluded from the 15% limitation regardless of whether or not it is
incorporated or primarily operates in an emerging market. The risks of investing
in foreign markets are generally intensified for investments in emerging markets
since their economies are generally smaller, less diverse, and less mature, and
their political systems less stable than those in developed countries. A more
complete description of the risks associated with investing in emerging markets
is contained in the Statement of Additional Information.
CURRENCY HEDGING
The Sub-Advisor may engage in Strategic Transactions in an attempt to hedge the
Fund's foreign securities investments back to the U.S. dollar when, in its
judgment, currency movements affecting particular investments are likely to harm
the performance of the Fund. Possible losses from changes in currency exchange
rates are primarily a risk of unhedged investing in foreign securities. While a
security may perform well in a foreign market, if the local currency declines
against the U.S. dollar, gains from the investment can disappear or become
losses. Typically, currency fluctuations are more extreme than stock market
fluctuations. Accordingly, the strength or weakness of the U.S. dollar against
foreign currencies may account for part of the Fund's performance even when the
Sub-Advisor attempts to minimize currency risk through hedging activities. While
currency hedging may reduce portfolio volatility, there are costs associated
with such hedging, including the loss of potential profits, losses on Strategic
Transactions and increased transaction expenses.
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LOWER-RATED AND UNRATED DEBT SECURITIES
The Fund may invest up to 15% of its assets in debt securities without regard to
credit rating and may, therefore, invest in instruments that could experience a
default in the payment of principal and interest. The Fund may also purchase
debt securities on which the issuer has defaulted.
Lower-rated or unrated high yield debt securities are commonly known as junk
bonds and are often considered to be of speculative grade. They involve greater
risk of default due to changes in economic conditions, changes in the issuer's
creditworthiness or other circumstances. The market for these securities is
generally more limited and their prices may experience greater volatility than
in the case of debt securities with higher ratings. See the Statement of
Additional Information for a more complete discussion of the risks of investing
in lower-rated and unrated debt securities.
COMMODITY LINKED SECURITIES
The Fund may invest up to 10% of its net assets in structured notes and/or
preferred stock, the value of which is linked to the price of gold or other
commodities. Such structured securities have different characteristics and risks
than other types of securities in which the Fund may invest. For example, not
only the coupon and/or dividend but also the redemption amount may be increased
or decreased depending on the change in the price of the referenced commodity.
See COMMODITY LINKED SECURITIES in the Statement of Additional Information for
further information.
ILLIQUID SECURITIES
Disposition of illiquid securities often takes more time than more liquid
securities, may result in higher selling expenses and may not be able to be made
at desirable prices or at the prices at which such securities have been valued
by the Fund. As a non-fundamental policy, the Fund will not invest more than 15%
of its net assets in illiquid securities.
HOW TO PURCHASE SHARES
The minimum initial investment for the Fund is $5,000 for regular accounts or
$1,000 for custodial accounts for minors. The minimum subsequent investment is
$50. The minimum initial investment for persons enrolled in the ABC(R)
Investment Plan (Automatically Building Capital) is $1,000, and the minimum
subsequent investment pursuant to such a plan is $100 or more per month per
account. No minimum purchase is required for retirement plan accounts, including
IRAs, administered by the Advisor or its agents and affiliates.
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YOU MAY INVEST IN THE FOLLOWING WAYS:
BY MAIL
Send your application and check, made payable to the Adrian Day Global
Opportunity Fund, to P.O. Box 781234, San Antonio, Texas 78278-1234.
When making subsequent investments, enclose your check with the return
remittance section of the confirmation statement, or write your name, address
and account number on your check or a separate piece of paper and mail to the
address mentioned above. Do not use the remittance part of your confirmation
statement for a different fund because it is pre-coded. This may cause your
investment to be invested into the wrong fund. If you wish to purchase shares in
more than one fund, send a separate check or money order for each fund. Third
party checks will not be accepted, and the Trust reserves the right to refuse to
accept second party checks.
BY TELEPHONE
Once your account is open, you may make investments by telephone by calling
1-800-US-FUNDS (1-800-873-8637). Investments by telephone are not available in
money market funds or any retirement account administered by the Advisor or its
agents. The maximum telephone purchase is ten times the value of the shares
owned, calculated at the last available net asset value. Payment for shares
purchased by telephone is due within seven business days after the date of the
transaction. You cannot exchange shares purchased by telephone until after
payment has been received and accepted by the Trust.
BY WIRE
You may make your initial or subsequent investments in U.S. Global Accolade
Funds by wiring funds. To do so, call U.S. Global Accolade Funds at
1-800-US-FUNDS (1-800-873-8637) for a confirmation number and wiring
instructions.
BY ABC INVESTMENT Plan(R)
The ABC Investment Plan(R) (Automatically Building Capital) is offered as a
special service allowing you to build a position in any of the U.S. Global
Investors family of funds over time without trying to outguess the market. Once
your account is open, you may make investments automatically by completing the
ABC Investment Plan(R) form authorizing U.S. Global Accolade Funds to draw on
your money market or bank account for a minimum of $100 a month beginning within
thirty (30) days after the account is opened. These lower minimums are a special
service bringing to small investors the benefits of U.S. Global Accolade Funds
without requiring a $5,000 minimum initial investment.
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Your investment dollars will automatically buy more shares when the market is
undervalued and fewer shares when the market is overvalued. By investing an
equal amount at regular, periodic intervals, you avoid the extremes in the
market. Of course, using the ABC Investment Plan(R) does not guarantee a profit.
If you sell at the bottom, no system will give you a gain.
You may call 1-800-873-8637 to open a treasury money market fund or you could
ask your bank whether it will honor debits through the Automated Clearing House
("ACH") or, if necessary, preauthorized checks. You may change the date or
amount of your investment or discontinue the Plan anytime by letter received by
U.S. Global Accolade Funds at least two weeks before the change is to become
effective.
ADDITIONAL INFORMATION ABOUT PURCHASES
All purchases of shares are subject to acceptance by the Trust and are not
binding until accepted. U.S. Global Accolade Funds reserves the right to reject
any application or investment. Orders received by the Fund's transfer agent or a
subagent before 4:00 p.m. Eastern time, Monday through Friday exclusive of
business holidays, and accepted by the Fund will receive the share price next
computed after receipt of the order. If the NYSE and other financial markets
close earlier, as on the eve of a holiday, orders will become effective earlier
in the day at the close of trading on the NYSE.
If your telephone order to purchase shares is canceled due to nonpayment or late
payment (whether or not your check has been processed by the Fund), you will be
responsible for any loss incurred by the Trust because of such cancellation.
If a check is returned unpaid due to nonsufficient funds, stop payment or other
reasons, the Trust will charge $20, and you will be responsible for any loss
incurred by the Trust with respect to canceling the purchase.
To recover any such loss or charge, the Trust reserves the right, without
further notice, to redeem shares of any affiliated funds already owned by any
purchaser whose order is canceled, for whatever reason. Such a purchaser may be
prohibited from placing additional orders unless investments are accompanied by
full payment by wire or cashier's check.
U.S. Global Accolade Funds charges no sales commissions or "loads" of any
kind. However, investors may purchase and sell shares through registered
broker-dealers who may charge fees for their services.
CHECKS DRAWN ON FOREIGN BANKS. To be received in good order, an investment must
be made in U.S. dollars payable through a bank in the U.S. As an accommodation,
the Fund's transfer agent may accept checks payable in a foreign currency or
drawn on a foreign bank and will attempt to convert such checks into U.S.
dollars and repatriate such amount to the Fund's account in the
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U.S. Your investment in the Fund will not be considered to have been received in
good order until your foreign check has been converted into U.S. dollars and is
available to the Fund through a bank in the U.S. Your investment in the Fund may
be delayed until your foreign check has been converted into U.S. dollars and
cleared the normal collection process. Any amounts charged to the Fund for
collection procedures will be deducted from the amount invested.
If the Trust incurs a charge for locating a shareholder without a current
address, such charge will be passed through to the shareholder.
TAX IDENTIFICATION NUMBER
The Fund is required by Federal law to withhold and remit to the United States
Treasury a part of the dividends, capital gain distributions and proceeds of
redemptions paid to any shareholder who fails to furnish the Fund with a correct
taxpayer identification number, who underreports dividend or interest income or
who fails to provide certification of tax identification number. To avoid this
withholding requirement, you must certify on your application, or on a separate
Form W-9 supplied by the transfer agent, that your taxpayer identification
number is correct and that you are not currently subject to backup withholding
or you are exempt from backup withholding. For individuals, your taxpayer
identification number is your social security number.
Instructions to exchange or transfer shares held in established accounts will be
refused until the certification has been provided. In addition, the Fund
assesses a $50 administrative fee if the taxpayer identification number is not
provided by year-end.
CONFIRMATION STATEMENTS
When you open your account, U.S. Global Accolade Funds will send you a
confirmation statement, which will be your evidence that you have opened an
account with U.S. Global Accolade Funds. The confirmation statement is
nonnegotiable, so if it is lost or destroyed, you will not be required to buy a
lost instrument bond or be subject to other expense or trouble, as you would
with a negotiable stock certificate. The fund does not issue stock certificates.
HOW TO EXCHANGE SHARES
You have the privilege of exchanging into any of the other funds in the U.S.
Global Investors family of funds. An exchange involves the redemption (sale) of
shares of one fund and purchase of shares of another fund at the respective
closing net asset value and is a taxable transaction.
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FUNDS IN THE U.S. GLOBAL INVESTORS FAMILY OF FUNDS
Investing involves balancing potential rewards against potential risks. To
achieve higher rewards on your investment, you must be willing to take on higher
risk. If you are most concerned with safety of principal, a lower risk
investment will provide greater stability but with lower potential earnings.
Another strategy for dealing with volatile markets is to use the ABC Investment
Plan(R). The list below is a reward and risk guide to all of the mutual funds in
the U.S. Global Investors family of funds. This guide may help you decide if a
fund is suitable for your investment goals.
HIGH REWARD China Region Opportunity Fund
HIGH RISK U.S. Gold Shares Fund
U.S. World Gold Fund
U.S. Global Resources Fund
Adrian Day Global Opportunity Fund
Bonnel Growth Fund
U.S. Real Estate Fund
MODERATE REWARD U.S. All American Equity Fund
MODERATE RISK MegaTrends Fund
U.S. Income Fund
U.S. Tax Free Fund
United Services Near-Term Tax Free Fund
LOW REWARD U.S. Government Securities Savings Fund
LOW RISK U.S. Treasury Securities Cash Fund
If you have additional questions, one of our professional investor
representatives will personally assist you. Call 1-800-US-FUNDS
(1-800-873-8637).
BY TELEPHONE
You will be able to automatically direct U.S. Global Accolade Funds to exchange
your shares by calling toll free 1-800-US-FUNDS (1-800-873-8637). In connection
with such exchanges, neither the Fund nor the transfer agent will be responsible
for acting upon any instructions reasonably believed by them to be genuine. The
shareholder, because of this policy, will bear the risk of loss. The Fund and/or
its transfer agent will, however, use reasonable procedures to confirm that
telephone instructions are genuine (including requiring some form of personal
identification, providing written confirmation and tape recording
conversations). If either party does not employ reasonable procedures, it may be
liable for losses due to unauthorized or fraudulent transactions.
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BY MAIL
You may direct U.S. Global Accolade Funds in writing to exchange your shares
between identically registered accounts in the U.S. Global Investors family of
funds. The request must be signed exactly as the name appears in the
registration. (Before writing, read ADDITIONAL INFORMATION ABOUT EXCHANGES.)
ADDITIONAL INFORMATION ABOUT EXCHANGES
(1) A $5 charge will be paid to United Shareholder Services, Inc. for each
exchange out of any fund account. Retirement accounts administered by the
Advisor or its agents are charged $5 for each exchange exceeding three per
quarter. Exchange fees cover administrative costs associated with handling these
exchanges.
(2) An exchange involves both the redemption of shares out of the Fund and the
purchase of shares in a "Separate Fund." Like any other purchase, shares of the
Separate Fund cannot be purchased by exchange until all conditions of purchase
are met, including investable proceeds being immediately available. Like any
other redemption, the Fund reserves the right to hold exchange proceeds for up
to seven days. In general, the Fund expects to exercise this right on exchanges
of $50,000 or more. In such event, purchase of the Separate Fund shares will
also be delayed. Separate Fund shares will be priced at their net asset value at
the time of purchase. Redemption proceeds will not be invested in either fund
during this period. Fund shares will always be redeemed immediately; however,
Separate Fund shares will not be purchased until investable proceeds are
available. You will be notified immediately if the purchase will be delayed.
(3) Shares may not be exchanged unless you have furnished U.S. Global Accolade
Funds with your tax identification number, certified as required by the Internal
Revenue Code and Regulations, and the exchange is to an account with like
registration and tax identification number. (See TAX IDENTIFICATION NUMBER.)
(4) Exchanges out of the Adrian Day Global Opportunity Fund of shares held less
than 30 days are subject to a trader's fee. (See TRADER'S FEE PAID TO FUNDS.)
(5) The exchange privilege may be canceled anytime. The exchange fee and other
terms of the privilege are subject to change.
HOW TO REDEEM SHARES
You may redeem any or all of your shares at will. Requests received in proper
order by the Trust's transfer agent or a subagent before 4:00 p.m. Eastern time,
Monday through Friday exclusive of business holidays, will receive the share
price next computed after receipt of the request.
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BY MAIL
A written request for redemption must be in "proper order," which requires the
delivery of the following to the transfer agent:
(1) written request for redemption signed by each registered owner exactly
as the shares are registered, the account number and the number of shares
or the dollar amount to be redeemed;
(2) signature guarantees when required; and
(3) additional documents as are customarily required to evidence the
authority of persons effecting redemptions on behalf of corporations,
executors, trustees, and other fiduciaries. Redemptions will not become
effective until all documents, in the form required, have been received by
the transfer agent. (Before writing, read ADDITIONAL INFORMATION ABOUT
REDEMPTIONS.)
HOW TO EXPEDITE REDEMPTIONS
To redeem your Fund shares by telephone, you may call the Fund and direct an
exchange out of the Fund into an identically registered account in a U.S. Global
treasury money market fund ($1,000 minimum initial investment). You may then
write a check against your treasury money market fund account. See HOW TO
EXCHANGE SHARES for a description of exchanges, including the $5 exchange fee.
Call 1-800-873-8637 for more information concerning telephone redemptions and a
treasury money market fund prospectus.
SPECIAL REDEMPTION ARRANGEMENTS
Institutional investors, brokers, advisers, banks or similar institutions
(whether acting for themselves or on behalf of a client) may make special
arrangements to have redemption proceeds transferred by wire to pre-established
accounts upon telephone instructions. For additional information, call the Trust
at 1-800-873-8637. Telephone redemptions are available for Chairman's Circle
accounts.
SIGNATURE GUARANTEE
Redemptions of more than $15,000 require a signature guarantee. A signature
guarantee is required for all redemptions, regardless of the amount involved, if
(a) proceeds are to be paid to someone other than the registered owner of the
shares or (b) proceeds are to be mailed to an address other than the registered
address of record. When a signature guarantee is required, each signature must
be guaranteed by: (a) a federally insured bank or thrift institution; (b) a
broker or dealer (general securities, municipal, or government) or clearing
agency registered with the U.S. Securities and Exchange Commission that
maintains net capital of at least $100,000; or (c) a national securities
exchange or national
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securities association. The guarantee must: (i) include the statement
"Signature(s) Guaranteed"; (ii) be signed in the name of the guarantor by an
authorized person, including the person's printed name and position with the
guarantor; and (iii) include a recital that the guarantor is federally insured,
maintains the requisite net capital or is a national securities exchange or
association. Shareholders living abroad may acknowledge their signatures before
a U.S. consular officer. Military personnel may acknowledge their signatures
before officers authorized to take acknowledgments (e.g., legal officers and
adjutants).
REDEMPTION PROCEEDS MAY BE SENT TO YOU:
BY MAIL
If your redemption check is mailed, it is usually mailed within 48 hours;
however, the Fund reserves the right to hold redemption proceeds for up to seven
days. If the shares to be redeemed were purchased by check, the redemption
proceeds will not be mailed until the purchase check has cleared, which may take
up to seven days. You may avoid this requirement by investing by bank wire
(Federal funds). Redemption checks may be delayed if you have changed your
address in the last 30 days. Please notify the Fund promptly in writing, or by
telephone, of any change of address.
BY WIRE
You may authorize the Fund to transmit redemption proceeds by wire, provided you
send written wiring instructions with a signature guarantee at the time of
redemption. Proceeds from your redemption will usually be transmitted on the
first business day following the redemption. However, the Trust reserves the
right to hold redemptions for up to seven days. If the shares to be redeemed
were purchased by check, the redemption proceeds will not be mailed or wired
until the purchase check has cleared, which may take up to seven days. A $10.00
charge will be deducted from redemption proceeds to cover the wire.
International wire charges will be higher.
ADDITIONAL INFORMATION ABOUT REDEMPTIONS
The redemption price may be more or less than your cost, depending on the net
asset value of the Fund's portfolio next determined after your request is
received.
A request to redeem shares in an IRA or similar retirement account must be
accompanied by IRS Form W4-P and a reason for withdrawal as required by the IRS.
Proceeds from the redemption of shares from a retirement account may be subject
to withholding tax.
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The Trust has the authority to redeem existing accounts and to refuse a
potential account the privilege of having an account in the Trust if the Trust
reasonably determines that the failure to redeem or prohibit would have a
material adverse consequence for the Trust and its shareholders. No account
closing fee or redemption fee will be charged to investors whose accounts are
closed under this provision.
TRADER'S FEE PAID TO FUND
A trader's fee of 1.00% of the value of shares redeemed or exchanged will be
assessed to shareholders who redeem or exchange shares of the Fund held less
than thirty (30) calendar days. The trader's fee will be paid to the Fund to
benefit remaining shareholders by protecting them against expenses due to
excessive trading. Excessive short-term trading has an adverse impact on
effective portfolio management as well as on Fund expenses. The Fund has
reserved the right to refuse investments from shareholders who engage in
short-term trading that may be disruptive to the Fund.
ACCOUNT CLOSING FEE
To reduce Fund expenses, an account closing fee of $10 will be assessed to
shareholders who redeem all shares in their Fund account and direct that
redemption proceeds be delivered to them by mail or wire. The charge is payable
directly to the Fund's transfer agent; the transfer agent will reduce its
charges to the Fund by an equal amount. The purpose of the charge is to allocate
to redeeming shareholders a more equitable portion of the transfer agent's fee,
including the cost of tax reporting, which is based upon the number of
shareholder accounts. Account closing fees do not apply to exchanges between the
funds in the U.S. Global Investors family of funds nor do they apply to any
account which is involuntarily redeemed.
SMALL ACCOUNTS
Fund accounts which fall, for any reason other than market fluctuations, below
$5,000 anytime during the month will be subject to a monthly small account
charge of $1 which will be payable quarterly. The charge is payable directly to
the Fund's transfer agent which, in turn, will reduce its charges to the Fund by
an equal amount. The purpose of the charge is to allocate the costs of
maintaining shareholder accounts more equally among shareholders.
As a special service for small investors, active ABC Investment Plan(R)
accounts, custodial accounts for minors and retirement plan accounts
administered by the Advisor or its agents and affiliates will not be subject to
the small account charge.
To reduce Fund expenses, the Trust may redeem all shares in any shareholder
account, other than active ABC Investment Plan(R) accounts, custodial accounts
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for minors and retirement plan accounts, if, for a period of more than three
months, the account has a net asset value of $2,500 or less and the reduction in
value is not due to market fluctuations. If the Fund elects to close such
accounts, it will notify shareholders whose accounts are below the minimum of
its intention to do so, and will give those shareholders an opportunity to
increase their accounts by investing enough assets to bring their accounts up to
the minimum amount within ninety (90) days of the notice. No account closing fee
will be charged to investors whose accounts are closed under this redemption
provision.
CONFIRMATION STATEMENTS
Shareholders will normally receive a confirmation statement after each
transaction (purchase, redemption, dividend, etc.) showing activity in the
account. If you have no transactions, you will receive an annual statement only.
OTHER SERVICES
The Trust offers a number of plans and services to meet the special needs of
certain investors. Plans include:
(1) payroll deduction plans, including military allotments;
(2) custodial accounts for minors;
(3) flexible, systematic withdrawal plans; and
(4) various retirement plans such as IRA, SEP/IRA, 403(b)(7), 401(k) and
employer-adopted defined contribution plans.
There is an annual charge for each retirement plan fund account for which
Security Trust & Financial Company ("STFC"), a wholly-owned subsidiary of the
Advisor, acts as custodian. If the administrative charge is not paid separately
before the last business day of a calendar year or before a total redemption, it
will be deducted from the shareholder's account. Application forms and brochures
describing these plans and services can be obtained from the transfer agent by
calling 1-800-US-FUNDS (1-800-873-8637).
SHAREHOLDER SERVICES
United Shareholder Services, Inc., a wholly-owned subsidiary of the Advisor,
acts as transfer and dividend paying agent for all fund accounts. Simply write
or call 1-800-US-FUNDS for prompt service on any questions about your account.
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24-HOUR ACCOUNT INFORMATION
Shareholders can access current information 24 hours a day on yields, share
prices, latest dividends, account balances, deposits and redemptions. Just call
1-800-US-FUNDS and press the appropriate codes into your touch-tone phone.
HOW SHARES ARE VALUED
Shares of the Fund are purchased or redeemed, on a continuing basis without a
sales charge, at their next determined net asset value per share. United
Shareholder Services, Inc. calculates the net asset value per share of the Fund.
Net asset value per share is determined, and orders become effective, as of 4:00
p.m. Eastern time, Monday through Friday exclusive of business holidays when the
NYSE is closed, by dividing the aggregate net assets of the Fund by the total
number of outstanding shares of the Fund. If the NYSE and other financial
markets close earlier, as on the eve of a holiday, the net asset value per share
will be determined earlier in the day at the close of trading on the NYSE.
Valuation will be calculated in U.S. dollars. Securities quoted in other
currencies will be converted to U.S. dollars using the exchange rate then in
effect in the principal market in which the relevant securities are traded. A
portfolio security listed or traded on an international market (market other
than those in the United States or Canada), either on an exchange or
over-the-counter, is valued at the last reported sales price before the time
when assets are valued. A portfolio security listed or traded in the domestic
market (market in the United States or Canada), either on an exchange or
over-the-counter, is valued at the latest reported sale price before the time
when assets are valued. Lacking any sales on that day, the security is valued at
the mean of the last reported bid and ask prices.
When market quotations are not readily available, or when restricted securities
or other assets are being valued, such assets are valued at fair value as
determined in good faith by or under procedures established by the Board of
Trustees.
Portfolio securities traded on more than one market are valued according to the
broadest and most representative market. Prices used to value portfolio
securities are monitored to ensure that they represent current market values. If
the price of a portfolio security is determined to be materially different from
its current market value, then such security will be valued at fair value as
determined by management and approved in good faith by the Board of Trustees.
Debt securities with maturities of 60 days or less at the time of purchase are
valued based on the amortized cost. This involves valuing an instrument at its
cost initially and, thereafter, assuming a constant amortization to maturity of
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any discount or premium, regardless of the impact of fluctuating interest rates
on the market value of the instrument.
DIVIDENDS AND TAXES
The Fund intends to qualify as a regulated investment company under SubChapter M
of the Internal Revenue Code of 1986, as amended (the "Code"). By complying with
the applicable provisions of the Code, the Fund will not be subject to Federal
income tax on its net investment income and capital gain net income distributed
to shareholders.
All income dividends and capital gain distributions are normally reinvested,
without charge, in additional full and fractional shares of the Fund.
Alternatively, investors may choose (1) automatic reinvestment of capital gain
distributions in Fund shares and payment of income dividends in cash, (2)
payment of capital gain distributions in cash and automatic reinvestment of
dividends in Fund shares, or (3) all capital gain distributions and income
dividends paid in cash. The share price of the reinvestment will be the net
asset value of the Fund shares computed at the close of business on the date the
dividend or distribution is paid. Undeliverable dividend checks returned to the
Fund and dividend checks not cashed after 180 days will automatically be
reinvested at the price of the Fund on the day returned (on or about the 181st
day), and the distribution option will be changed to "reinvest."
At the time of purchase, the share price of the Fund may reflect undistributed
income, capital gains or unrealized appreciation of securities. Any dividend or
capital gain distribution paid to a shareholder shortly after a purchase of
shares will reduce the per share net asset value by the amount of the
distribution. Although in effect a return of capital to the shareholder, these
distributions are fully taxable.
The Fund generally pays dividends and distributes capital gains, if any,
annually.
Mutual funds are potentially subject to a nondeductible 4% excise tax calculated
as a percentage of certain undistributed amounts of taxable ordinary income and
capital gains net of capital losses. The Fund intends to make such distributions
as may be necessary to avoid this excise tax.
Dividends from taxable net investment income and distributions of net short-term
capital gains paid by the Fund are taxable to shareholders as ordinary income,
whether received in cash or reinvested in additional shares of the Fund. Part of
these dividends may qualify for the 70% dividends received deduction available
to corporations. Distributions of net capital gains will be taxable to
shareholders as long-term capital gains, whether paid in cash or reinvested in
additional shares, regardless of the length of time the investor has held the
shares.
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Each January shareholders will receive a report of their Federal tax status of
dividends and distributions paid or declared by the Fund during the preceding
calendar year. This statement will also show whether and to what extent
distributions qualify for the 70% dividends received deduction available to
corporations.
This discussion relates only to generally applicable Federal income tax
provisions in effect as of the date of this prospectus. Shareholders should
consult their tax advisers about the status of distributions from the Fund in
their own states and localities.
THE TRUST
U.S. Global Accolade Funds (the "Trust") is an open-end management investment
company consisting of several separate, diversified portfolios.
The Trust was formed April 16, 1993, as a business trust under the laws of the
Commonwealth of Massachusetts. It is a series company authorized to issue shares
without par value in separate series. Shares of the series have been authorized;
each share represents an interest in a separate portfolio. The Board of Trustees
of the Trust has the power to create additional portfolios anytime without a
vote of shareholders of the Trust.
Under the Trust's First Amended and Restated Master Trust Agreement, no annual
or regular meeting of shareholders is required, although the Trustees may
authorize special meetings from time to time. Under the terms of the Master
Trust Agreement, the Trust has a staggered Board with terms of at least 25% of
the Trustees expiring every three years. The Trustees serve in that capacity for
six-year terms. Therefore, no shareholder meeting will ordinarily be held unless
otherwise required by the Investment Company Act of 1940 (the "1940 Act"). The
Trust will call a meeting of shareholders for purposes of voting on the question
of removal of one or more Trustees when requested in writing to do so by record
holders of not less than 10% of the Trust's outstanding shares, and in
connection with such meeting to comply with the provisions of Section 16(c) of
the Investment Company Act of 1940 relating to shareholder communications.
On any matter submitted to shareholders, shares of each portfolio entitle their
holder to one vote per share, regardless of the relative net asset value of each
portfolio's shares. On matters affecting an individual portfolio, a separate
vote of shareholders is required. Each portfolio's shares are fully paid and
non-assessable by the Trust, have no preemptive or subscription rights and are
fully transferable with no conversion rights.
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MANAGEMENT OF THE FUND
TRUSTEES
The Trust's Board of Trustees manages the business affairs of the Trust. The
Trustees establish policies and review and approve contracts and their
continuance. Trustees also elect the officers and select the Trustees to serve
as executive and audit committee members.
THE SUB-ADVISOR
Effective December 18, 1996, the Advisor and the Trust contracted with Global
Strategic Management, Inc. (the "Sub-Advisor"), 900 Bestgate Road, Suite 405,
Annapolis, Maryland 21401, to serve as Sub-Advisor for the Fund. Mr. Adrian Day,
president of the Sub-Advisor and its controlling shareholder, is the Funds
portfolio manager.
Adrian Day has been managing money since the spring of 1991. He is the editor of
the widely acclaimed investment newsletter, ADRIAN DAY'S INVESTMENT ANALYST, and
has been featured in or has written for many prestigious publications and has
been a featured speaker at investment conferences around the world.
The Sub-Advisor manages the composition of the portfolio and furnishes the Fund
advice and recommendations with respect to its investments and its investment
program and strategy, subject to the general supervision and control of the
Advisor and the Trust's Board of Trustees. While the Sub-Advisor does not have
experience managing a mutual fund portfolio, it has experience managing, and
continues to manage, separate accounts for institutions and wealthy individuals.
Investment decisions for the Fund are made independently of investment decisions
made for other clients.
Advisor and Sub-Advisor investment personnel may invest in securities for their
own account according to a Code of Ethics that establishes procedures for
personal investing and restricts certain transactions.
In consideration for such services, the Advisor pays the Sub-Advisor a sub-
advisory fee. The Advisor and the Sub-Advisor share the management fee equally,
except that the Sub-Advisor's fee will be subject to downward adjustments as
described in the Statement of Additional Information. The Fund is not
responsible for paying any portion of the Sub-Advisor's fees.
THE INVESTMENT ADVISOR
U.S. Global Investors, Inc., 7900 Callaghan Road, San Antonio, Texas 78229,
under an investment advisory agreement with the Trust dated September 21, 1994,
furnishes investment advice and is responsible for overall management of the
Trust's business affairs. Frank E. Holmes is Chairman of the Board of
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Directors and Chief Executive Officer of the Advisor, and President and Trustee
of the Trust. Since October 1989, Mr. Holmes has owned more than 25% of the
voting stock of the Advisor and is its controlling person. The Advisor was
organized in 1968 and serves as investment advisor to U.S. Global Investors
Funds (formerly United Services Funds), a family of mutual funds with
approximately $1.5 billion in assets.
The Advisor provides management and investment advisory services to the Trust
and to the Funds in the Trust. It furnishes an investment program for the Fund;
determines, subject to the overall supervision and review of the Board of
Trustees, what investments should be purchased, sold and held; and makes changes
on behalf of the Trust in the investments of the Fund.
Investment decisions for the Fund are made independently from those of other
investment companies advised by U.S. Global Investors, Inc.
The Advisor also provides the Trust with office space, facilities and business
equipment and provides the services of executive and clerical personnel for
administering the affairs of the Trust. The Advisor pays the expenses of
printing and mailing prospectuses and sales materials used for promotional
purposes.
The Advisory Agreement with the Trust provides for the Fund to pay the Advisor a
flat management fee of 1% of the Fund's average net assets.
The Advisor may, out of profits derived from its management fee, pay certain
financial institutions (which may include banks, securities dealers and other
industry professionals) a servicing fee for performing certain administrative
servicing functions for Fund shareholders to the extent these institutions are
allowed to do so by applicable statute, rule or regulation. These fees will be
paid periodically and will generally be based on a percentage of the value of
the institutions' client Fund shares.
The transfer agency agreement with the Trust provides for the Fund to pay the
transfer agent an annual fee of $23.00 per account (1/12 of $23.00 monthly). In
connection with obtaining/providing administrative services to the beneficial
owners of Fund shares through broker-dealers, banks, trust companies and similar
institutions that provide such services and maintain an omnibus account with the
transfer agent, the Fund will pay to the transfer agent a monthly fee equal to
one-twelfth (1/12) of 12.5 basis points (.00125) of the value of the shares of
the fund held in accounts at the institutions, which payment will not exceed
$1.92 multiplied by the average daily number of accounts holding Fund shares at
the institution. These fees cover the usual transfer agency functions. In
addition, the Fund bears certain other transfer agent expenses such as the costs
of records retention, postage, telephone and line charges (including the
toll-free service) used by shareholders to contact the transfer agent. Transfer
agent fees and expenses, including reimbursed expenses, are reduced by the
amount of small account charges and account closing fees paid to the transfer
agent.
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The transfer agent performs bookkeeping and accounting services and determines
the daily net asset value for the Fund for an asset-based fee of 0.03% of the
first 250 million average net assets, 0.02% of the next 250 million average net
assets and 0.01% of average net assets in excess of 500 million -- subject to an
annual minimum fee of $24,000.
Additionally, the Advisor is reimbursed certain costs for in-house legal
services pertaining to the Fund.
The Fund pays all other expenses for its operations and activities. The expenses
borne by the Fund include, among others, the charges and expenses of any
shareholder servicing agents; custodian fees; legal and auditor expenses;
brokerage commissions for portfolio transactions; the advisory fee;
extraordinary expenses; expenses of shareholders and trustee meetings; expenses
for preparing, printing, and mailing proxy statements, reports and other
communications to shareholders; and expenses of registering and qualifying
shares for sale.
DISTRIBUTION EXPENSE PLAN
Pursuant to Rule 12b-1 under the Investment Company Act of 1940, the Fund has
adopted a distribution expense plan (the "Plan") under which Fund assets may be
used to pay for or reimburse expenditures in connection with sales and
promotional services related to the distribution of Fund shares, including
personal services provided to prospective and existing Fund shareholders, which
include the costs of: printing and distribution of prospectuses and promotional
materials; making slides and charts for presentations; assisting shareholders
and prospective investors in understanding and dealing with the Fund; and travel
and out-of-pocket expenses (e.g., copy and long distance telephone charges)
related thereto. Fund assets may be used to pay for or reimburse such
expenditures provided the total amount expended pursuant to this Plan does not
exceed 0.25% of net assets annually.
Under the terms of the Plan the Fund may pay a servicing fee of up to 0.25% of
the Fund's average net assets (1/12 of 0.25% monthly) to persons or institutions
for performing certain servicing functions for Fund shareholders. These fees
will be paid periodically and will generally be based on a percentage of the
value of Fund shares held by the institution's clients. The Plan allows the Fund
to pay for or reimburse expenditures in connection with sales and promotional
services related to the distribution of Fund shares, including personal services
provided to prospective and existing Fund shareholders. See DISTRIBUTION PLAN in
the Statement of Additional Information.
PERFORMANCE INFORMATION
From time to time, in advertisements or in reports to shareholders or
prospective shareholders, the Fund may compare its performance, either in terms
of its yield, total return, or its yield AND total return, to that of other
mutual funds
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with similar investment objectives and to stock or other indices. Performance
comparisons will not be considered as representative of the future performance
of the Fund.
The Fund's average annual total return is computed by determining the average
annual compounded rate of return for a specified period that, if applied to a
hypothetical $1,000 initial investment, would produce the redeemable value of
that investment at the end of the period, assuming reinvestment of all dividends
and distributions and with recognition of all recurring charges. The Fund may
also use a total return for differing periods computed in the same manner but
without annualizing the total return.
The Fund's "yield" refers to the income generated by an investment in the Fund
over a 30-day or one-month period (the period will be stated in the
advertisement). Yield is computed by dividing the net investment income per
share earned during the most recent calendar month by the maximum offering price
per share on the last day of that month. This income is then "annualized." That
is, the income generated by the investment during the 30-day period is assumed
to be generated each month over a 12-month period and is shown as a percentage
of the investment.
For purposes of the yield calculation, interest income is computed based on the
yield to maturity of each debt obligation. Dividend income is computed based
upon the stated dividend rate of each security in the Fund's portfolio, and all
recurring charges are recognized.
The standard total return and yield results do not take into account recurring
and nonrecurring charges for optional services elected by certain shareholders;
e.g., nominal fees like the $5 exchange fee. These fees reduce the actual return
realized by shareholders.
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U.S. GLOBAL ACCOLADE FUNDS
SHARES OF THE FUND ARE SOLD
AT NET ASSET VALUE WITHOUT SALES COMMISSIONS OR
REDEMPTION FEES
Adrian Day Global Opportunity Fund
INVESTMENT ADVISOR
U.S. Global Investors, Inc.
7900 Callaghan Road
Mailing Address: P.O. Box 29467
San Antonio, Texas 78229-0467
INVESTMENT SUB-ADVISOR
Global Strategic Management, Inc.
900 Bestgate Road, Suite 405
Annapolis, Maryland 21401
TRANSFER AGENT
United Shareholder Services, Inc.
P.O. Box 781234
San Antonio, Texas 78278-1234
CUSTODIAN
Bankers Trust Company
16 Wall Street
New York, New York 10005
INDEPENDENT ACCOUNTANT
Price Waterhouse LLP
One Riverwalk Place, Suite 900
San Antonio, Texas 78205
100% No Load
Be Sure to Retain This Prospectus.
It Contains Valuable Information.
