[GRAPHIC: U.S. GLOBAL INVESTORS, INC. LOGO]
Dear Investor,
As a subscriber to The Fabian Premium Investment Resource, you know the value of
a professional investor's advice. As professional investors ourselves, we were
more than pleased that editor Doug Fabian named the BONNEL GROWTH FUND one of
his Rising Stars for 1997.
"THOUGH PROFILED IN OUR 1996 ANNUAL INVESTMENT EDITION, ART BONNEL'S GROWTH FUND
CONTINUES TO SHINE BRIGHT. A WELL-DIVERSIFIED PORTFOLIO, COUPLED WITH BONNEL'S
STOCK-PICKING ABILITIES, GAVE THE FUND OUTSTANDING PERFORMANCE...IN THE LAST BUY
CYCLE."
After one year of top performance, many hot funds disappoint. The BONNEL GROWTH
FUND is a different story. With a dynamic and disciplined approach to buying and
selling stocks, Bonnel has maintained consistent high performance since we
opened the Fund in 1994.
THE BONNEL GROWTH FUND CONSISTENTLY OUTPERFORMS THE S&P 500
(LINEAR GRAPH PLOTTED FROM DATA IN TABLE BELOW)
<TABLE>
<CAPTION>
Bonnel Growth Total
Fund S&P 500 Returns
------------- ------------- -------
<C> <C> <C> <C>
21-Oct-94 ................. $ 10,000.00 $ 10,000.00 0.00%
28-Oct-94 ................. $ 10,010.00 $ 10,000.00 0.10%
31-Oct-94 ................. $ 10,010.00 $ 10,224.34 0.10%
4-Nov-94 ................. $ 10,010.00 $ 10,224.34 0.10%
11-Nov-94 ................. $ 10,020.00 $ 10,224.34 0.20%
18-Nov-94 ................. $ 10,020.00 $ 10,224.34 0.20%
25-Nov-94 ................. $ 10,030.00 $ 10,224.34 0.30%
30-Nov-94 ................. $ 10,030.00 $ 9,852.45 0.30%
2-Dec-94 ................. $ 10,020.00 $ 9,852.45 0.20%
9-Dec-94 ................. $ 10,020.00 $ 9,852.45 0.20%
16-Dec-94 ................. $ 10,050.00 $ 9,852.45 0.50%
23-Dec-94 ................. $ 10,060.00 $ 9,852.45 0.60%
30-Dec-94 ................. $ 10,090.00 $ 9,998.40 0.90%
6-Jan-95 ................. $ 10,069.94 $ 9,998.40 0.70%
13-Jan-95 ................. $ 10,079.97 $ 9,998.40 0.80%
20-Jan-95 ................. $ 10,059.91 $ 9,998.40 0.60%
27-Jan-95 ................. $ 9,949.58 $ 9,998.40 -0.50%
31-Jan-95 ................. $ 9,859.31 $ 10,257.51 -1.41%
3-Feb-95 ................. $ 10,140.15 $ 10,257.51 1.40%
10-Feb-95 ................. $ 10,431.01 $ 10,257.51 4.31%
17-Feb-95 ................. $ 10,441.04 $ 10,257.51 4.41%
24-Feb-95 ................. $ 10,461.10 $ 10,257.51 4.61%
28-Feb-95 ................. $ 10,491.19 $ 10,656.87 4.91%
3-Mar-95 ................. $ 10,651.67 $ 10,656.87 6.52%
10-Mar-95 ................. $ 10,741.94 $ 10,656.87 7.42%
17-Mar-95 ................. $ 10,932.51 $ 10,656.87 9.33%
24-Mar-95 ................. $ 11,062.89 $ 10,656.87 10.63%
31-Mar-95 ................. $ 10,942.54 $ 10,970.83 9.43%
7-Apr-95 ................. $ 10,862.30 $ 10,970.83 8.62%
14-Apr-95 ................. $ 11,193.28 $ 10,970.83 11.93%
21-Apr-95 ................. $ 11,002.71 $ 10,970.83 10.03%
28-Apr-95 ................. $ 11,423.97 $ 11,293.64 14.24%
5-May-95 ................. $ 11,423.97 $ 11,412.12 14.24%
12-May-95 ................. $ 11,654.65 $ 11,531.49 16.55%
19-May-95 ................. $ 11,744.92 $ 11,391.94 17.45%
26-May-95 ................. $ 11,664.68 $ 11,489.80 16.65%
31-May-95 ................. $ 11,594.47 $ 11,744.34 15.94%
2-Jun-95 ................. $ 11,714.83 $ 11,724.53 17.15%
9-Jun-95 ................. $ 11,855.25 $ 11,623.91 18.55%
16-Jun-95 ................. $ 12,226.35 $ 11,885.70 22.26%
23-Jun-95 ................. $ 12,707.78 $ 12,103.23 27.08%
30-Jun-95 ................. $ 12,677.69 $ 12,016.66 26.78%
7-Jul-95 ................. $ 13,359.72 $ 12,272.67 33.60%
14-Jul-95 ................. $ 13,861.21 $ 12,350.63 38.61%
21-Jul-95 ................. $ 13,510.17 $ 12,212.32 35.10%
28-Jul-95 ................. $ 14,222.29 $ 12,417.69 42.22%
31-Jul-95 ................. $ 14,121.99 $ 12,414.98 41.22%
4-Aug-95 ................. $ 13,831.12 $ 12,346.06 38.31%
11-Aug-95 ................. $ 13,931.42 $ 12,261.46 39.31%
18-Aug-95 ................. $ 14,563.30 $ 12,352.03 45.63%
25-Aug-95 ................. $ 14,412.85 $ 12,371.68 44.13%
31-Aug-95 ................. $ 14,252.38 $ 12,445.97 42.52%
1-Sep-95 ................. $ 14,242.35 $ 12,489.16 42.42%
8-Sep-95 ................. $ 15,034.70 $ 12,684.97 50.35%
15-Sep-95 ................. $ 14,884.26 $ 12,921.54 48.84%
22-Sep-95 ................. $ 14,954.46 $ 12,885.65 49.54%
29-Sep-95 ................. $ 14,874.23 $ 12,970.91 48.74%
6-Oct-95 ................. $ 14,051.78 $ 12,928.30 40.52%
13-Oct-95 ................. $ 14,242.35 $ 12,972.91 42.42%
20-Oct-95 ................. $ 14,322.58 $ 13,038.61 43.23%
27-Oct-95 ................. $ 14,302.53 $ 12,866.38 43.03%
31-Oct-95 ................. $ 14,523.18 $ 12,924.57 45.23%
3-Nov-95 ................. $ 14,783.96 $ 13,126.16 47.84%
10-Nov-95 ................. $ 14,763.90 $ 13,173.95 47.64%
17-Nov-95 ................. $ 14,623.48 $ 13,337.31 46.23%
24-Nov-95 ................. $ 14,332.61 $ 13,335.09 43.33%
30-Nov-95 ................. $ 14,804.02 $ 13,491.29 48.04%
1-Dec-95 ................. $ 14,693.69 $ 13,527.18 46.94%
8-Dec-95 ................. $ 14,753.87 $ 13,761.18 47.54%
15-Dec-95 ................. $ 14,442.94 $ 13,735.77 44.43%
22-Dec-95 ................. $ 14,390.42 $ 13,637.94 43.90%
29-Dec-95 ................. $ 14,653.02 $ 13,751.17 46.53%
5-Jan-96 ................. $ 14,064.80 $ 13,790.69 40.65%
12-Jan-96 ................. $ 13,560.61 $ 13,435.93 35.61%
19-Jan-96 ................. $ 13,770.69 $ 13,659.64 37.71%
26-Jan-96 ................. $ 14,106.82 $ 13,878.21 41.07%
31-Jan-96 ................. $ 14,442.94 $ 14,218.65 44.43%
2-Feb-96 ................. $ 14,516.47 $ 14,273.20 45.16%
9-Feb-96 ................. $ 14,989.15 $ 14,673.59 49.89%
16-Feb-96 ................. $ 14,831.59 $ 14,486.03 48.32%
23-Feb-96 ................. $ 15,367.29 $ 14,734.18 53.67%
29-Feb-96 ................. $ 15,031.16 $ 14,350.93 50.31%
1-Mar-96 ................. $ 14,842.09 $ 14,439.22 48.42%
8-Mar-96 ................. $ 14,821.08 $ 14,195.64 48.21%
15-Mar-96 ................. $ 15,577.37 $ 14,373.34 55.77%
22-Mar-96 ................. $ 15,724.43 $ 14,579.27 57.24%
29-Mar-96 ................. $ 15,734.93 $ 14,489.10 57.35%
5-Apr-96 ................. $ 16,092.06 $ 14,721.65 60.92%
12-Apr-96 ................. $ 15,892.49 $ 14,291.80 58.92%
19-Apr-96 ................. $ 16,417.69 $ 14,479.45 64.18%
26-Apr-96 ................. $ 17,478.59 $ 14,667.77 74.79%
30-Apr-96 ................. $ 17,604.63 $ 14,702.52 76.05%
3-May-96 ................. $ 17,678.16 $ 14,420.68 76.78%
10-May-96 ................. $ 17,951.26 $ 14,655.77 79.51%
17-May-96 ................. $ 18,739.06 $ 15,033.80 87.39%
24-May-96 ................. $ 19,106.70 $ 15,249.56 91.07%
31-May-96 ................. $ 19,085.69 $ 15,081.05 90.86%
7-Jun-96 ................. $ 18,697.05 $ 15,175.48 86.97%
14-Jun-96 ................. $ 18,192.86 $ 15,007.34 81.93%
21-Jun-96 ................. $ 17,415.56 $ 15,029.66 74.16%
28-Jun-96 ................. $ 17,552.11 $ 15,138.54 75.52%
5-Jul-96 ................. $ 17,152.96 $ 14,840.80 71.53%
12-Jul-96 ................. $ 16,249.62 $ 14,586.84 62.50%
19-Jul-96 ................. $ 15,945.01 $ 14,418.44 59.45%
26-Jul-96 ................. $ 15,650.90 $ 14,354.56 56.51%
31-Jul-96 ................. $ 15,734.93 $ 14,470.09 57.35%
2-Aug-96 ................. $ 16,512.22 $ 14,979.75 65.12%
9-Aug-96 ................. $ 16,480.71 $ 14,970.93 64.81%
16-Aug-96 ................. $ 16,449.20 $ 15,041.25 64.49%
23-Aug-96 ................. $ 16,564.74 $ 15,082.41 65.65%
30-Aug-96 ................. $ 16,564.74 $ 14,775.77 65.65%
6-Sep-96 ................. $ 16,554.24 $ 14,859.40 65.54%
13-Sep-96 ................. $ 17,426.07 $ 15,422.79 74.26%
20-Sep-96 ................. $ 17,688.67 $ 15,569.65 76.89%
27-Sep-96 ................. $ 17,940.76 $ 15,550.84 79.41%
30-Sep-96 ................. $ 18,014.29 $ 15,606.65 80.14%
4-Oct-96 ................. $ 18,539.49 $ 15,927.96 85.39%
11-Oct-96 ................. $ 18,455.45 $ 15,909.79 84.55%
18-Oct-96 ................. $ 18,423.94 $ 16,140.49 84.24%
25-Oct-96 ................. $ 18,066.81 $ 15,915.69 80.67%
31-Oct-96 ................. $ 17,909.25 $ 16,036.93 79.09%
1-Nov-96 ................. $ 17,898.75 $ 16,002.82 78.99%
8-Nov-96 ................. $ 18,665.53 $ 16,617.90 86.66%
15-Nov-96 ................. $ 18,581.50 $ 16,772.52 85.82%
22-Nov-96 ................. $ 18,402.94 $ 17,025.15 84.03%
29-Nov-96 ................. $ 18,746.40 $ 17,248.06 87.46%
6-Dec-96 ................. $ 18,714.59 $ 16,851.16 87.15%
13-Dec-96 ................. $ 18,396.49 $ 16,601.44 83.96%
20-Dec-96 ................. $ 18,640.37 $ 17,062.37 86.40%
27-Dec-96 ................. $ 18,810.02 $ 17,242.82 88.10%
31-Dec-96 ................. $ 18,746.40 $ 16,906.39 87.46%
3-Jan-97 ................. $ 18,693.38 $ 17,072.77 86.93%
10-Jan-97 ................. $ 18,926.65 $ 17,334.56 89.27%
17-Jan-97 ................. $ 18,735.79 $ 17,715.03 87.36%
24-Jan-97 ................. $ 18,661.57 $ 17,586.07 86.62%
31-Jan-97 ................. $ 18,884.24 $ 17,962.05 88.84%
</TABLE>
----------------------------
Cumulative Total Returns
----------------------------
+88.84%
Over Life of Fund
----------------------------
----------------------------
Average Annual Total Returns
----------------------------
+32.04%
Since Inception 10/17/94
+30.75%
One Year
----------------------------
An investment of $10,000 in the Bonnel Growth Fund on 10/17/94 would have grown
to $18,884 by 1/31/97. The same $10,000 invested in the stocks of the S&P 500
would have earned only $17,962 over that time period. All performance figures
include reinvestment of dividends.
Bonnel invests in fast-growing mid-cap stocks which he believes have the highest
potential for future growth. All stocks must meet his strict investment
criteria. If they fail to meet his standards, even for one quarter, he sells
them to find his shareholders better opportunities elsewhere. And Bonnel puts
his money where his mouth is. He and his wife have retirement and regular
accounts in the Fund.
Inspired to superior performance, Art Bonnel and U.S. Global Investors can give
you excellent growth potential in a diversified, no-load mutual fund. Call
1-800-426-6635 today or return the tear-off card below to discover the benefits
of investing with specialists in the mid-cap growth stock market. Please
remember: the Fund is intended for the high-performance, growth portion of a
diversified portfolio. Call now to learn how our other no-load funds can help
you build a solid investment strategy for reaching your financial goals.
Sincerely yours,
/s/Frank Holmes
Frank Holmes
Chairman & CEO
P.S. You can also take advantage of the low minimum initial investments
available through the ABC Investment Plan(R). Call 1-800-4-BONNEL or
1-800-426-6635 to discover how regular monthly investments can maximize the
accumulation of your wealth.
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YES! I NEED TO LEARN MORE ABOUT THE BONNEL GROWTH FUND. PLEASE RUSH ME A FREE
INVESTMENT GUIDE TODAY.
Name ............................ [ ]Bonnel Growth Fund
Address ......................... [ ]Please enclose a free IRA investment kit.
City, State, Zip ................ For immediate response call
1-800-4-BONNEL now or visit us on
Daytime Phone.................... the Web at www.usfunds.com. FAB061
For more complete information,
including charges and expenses,
call 1-800-4-BONNEL. Please read
the prospectus carefully before
investing. Past performance is no
guarantee of future results.
Investment return and principal may
fluctuate. You may have a gain or
loss when you sell shares. The S&P
500 is an unmanaged index and
considered representative of the
stock market.
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