[GRAPHIC: PICTURE OF A COMPASS]
ADRIAN DAY GLOBAL OPPORTUNITY FUND
REGENT EASTERN EUROPEAN FUND
---------------------------------
Semi-Annual Report April 30, 1997
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<PAGE>
U.S. Global Investors
--------------------------------------
Adrian Day Global Opportunity Fund and
Regent Eastern European Fund
Semi-Annual Report
--------------------------------------
April 30, 1997
(UNAUDITED)
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Table of Contents
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Letter to Shareholders .................................................... 1
Investment Manager Perspective
Adrian Day Global Opportunity Fund ..................................... 2
Regent Eastern European Fund ........................................... 4
Portfolio of Investments
Adrian Day Global Opportunity Fund ..................................... 6
Regent Eastern European Fund ........................................... 8
Statements of Assets and Liabilities ...................................... 9
Statements of Operations .................................................. 10
Statements of Changes in Net Assets ....................................... 11
Notes to Financial Statements ............................................. 12
Financial Highlights ...................................................... 16
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For more information, including charges and expenses, call 1-800-US-FUNDS or
visit us on the Web at www.usfunds.com. Please read the prospectus carefully
before investing; it details the special risks, including political, currency
and economic risks, of investing in emerging markets. U.S. stands for United
Services. Past performance is no guarantee of future results. Investment returns
and principal will fluctuate so that you may have a gain or loss when you sell
shares.
Must be preceded or accompanied by a current prospectus.
<PAGE>
[GRAPHIC: Photo of Frand Holmes, Chairman & CEO]
Dear Shareholder,
Thank you for your investment in the newest of U.S. Global Investors' funds. We
are pleased to bring you the opportunity to invest with the renowned investment
advisor Adrian Day and with Regent Pacific Fund Management, a leading portfolio
investor in Russia.
On the following pages, you can read more about the market insights of these
fund managers. I want to share with you another way to enhance your experience
in either or both of these funds.
First, invest early and often. Both of these funds are aiming to take advantage
of a single basic principle in the global markets today: developing markets have
more growth potential than developed ones. While there can be no guarantees, by
increasing your investment in these funds today, you stand a greater chance for
maximum growth of capital over the long term.
Second, by using the ABC Investment Plan(R), our automatic monthly investment
program, you can ease into the funds over time and reduce the average cost of
your shares. By making regular monthly investments, you buy shares regardless of
their price, while by making a lump sum investment, you are locked into one
price, which may be relatively high.
Of course, no system can guarantee you a profit. If you sell at bottom, no
system will give you a gain. Yet by using the plan, you can better balance risk
and reward in the Regent Eastern European Fund and the Adrian Day Global
Opportunity Fund. Don't try to outguess an unpredictable market. Call
1-800-873-8637 today for an ABC Investment Plan(R) application form.
Sincerely yours,
/s/Frank Holmes
Frank Holmes
Chairman & CEO
P.S. All of our funds are available for IRA accounts. Call 1-800-US-FUNDS or
1-800-873-8637 today for an IRA investment guide and application. If you
transfer $10,000 or more to an IRA account, we will waive the annual IRA fee for
the life of your account.
1
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ADRIAN DAY GLOBAL OPPORTUNITY FUND
SEMI-ANNUAL REPORT FOR THE PERIOD ENDED APRIL 30, 1997
Thank you for being a premier investor in the new Adrian Day Global Opportunity
Fund. As you know, the Fund opened only a few months ago, and I am excited to
offer you this ground-floor opportunity to invest in the global markets with me.
The long-term outlook is good for many global markets and for the Fund. As I
invest the new assets of the Fund, I am holding a high position in cash in order
to be able to buy stocks at low prices, since I am cautious about the high
valuations in many markets.
Growth at a reasonable price is a central tenet of the Fund, which is why I have
chosen not to rush into the markets rashly. Much of the cash in the Fund is very
new, and I want to invest it carefully to reduce the risk of short-term
volatility in the markets. As a value investor, I am not looking for short-term
gains, yet I do want to reduce the risk to your long-term investment.
As I look globally for blue-chip and emerging companies, I am finding many solid
opportunities. Several of these come in emerging markets such as Korea and
Thailand. Because they have high dollar-denominated debt, countries like these
are benefiting from a weakening in the U.S. dollar against the yen. Currency
problems in Europe, on the other hand, have made it difficult to justify buying
many of their expensive securities. And Japan remains unattractive in the short
term, since valuations which may be reasonable on an asset basis are high on a
price-to-earnings basis. If Japan can generate a sustained upturn in earnings, I
will consider taking a position in my favorite Japanese stocks.
Thank you again for trusting me with your investment. I look forward to a long
and rewarding relationship with you.
/s/ Adrian Day
Adrian Day
Portfolio Manager
2
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Geographic Diversification of Equity Holdings
(PIE CHART PLOTTED FROM DATA IN TABLE BELOW)
<TABLE>
<CAPTION>
Country of Listing Current Market Value % of Current
Market Value
<S> <C> <C>
Argentina .......................... $ 7,000.00 1.39%
Canada ............................. $ 129,235.75 25.75%
Chile .............................. $ 46,900.00 9.34%
Hong Kong .......................... $ 27,750.00 5.53%
Luxembourg ......................... $ 22,250.00 4.43%
New Zealand ........................ $ 49,079.00 9.78%
S. Korea ........................... $ 34,835.25 6.94%
Thailand ........................... $ 19,315.40 3.85%
U.K ................................ $ 31,375.00 6.25%
U.S ................................ $ 134,187.50 26.73%
Total .............................. $ 501,927.90 100.00%
</TABLE>
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Top 10 Holdings Based on Total Investments
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Brierley Investment, Ltd. 3.84%
................................................................................
Newmont Mining Corp. 3.33%
................................................................................
Enersis S.A. (ADR) 2.96%
................................................................................
The Energy Group PLC (ADR) 2.93%
................................................................................
Pan-American Silver Corp. 2.72%
................................................................................
Freeport Copper & Gold (Preferred) 2.51%
................................................................................
Euro-Nevada Mining Corp. 2.50%
................................................................................
The Singer Co., N.V 2.48%
................................................................................
PLD Telekom, Inc. 2.48%
................................................................................
AirTouch Communications, Inc. 2.41%
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3
<PAGE>
REGENT EASTERN EUROPEAN FUND
SEMI-ANNUAL REPORT FOR THE PERIOD ENDED APRIL 30, 1997
Thank you for choosing the Regent Eastern European Fund. I believe this is an
exciting time to invest in Russia and Eastern Europe, since it appears to me
that the reforms of the post-communist era are irreversible and economic growth
is likely to increase.
The largest country within the Fund's investment scope, Russia stands an
excellent chance for a substantial increase in foreign investment this year and
in 1998. While last year the annual net outflow of capital was considered by
market insiders to be $20 billion, to date a net $5 billion of new money has
come into the Russian bond market. Foreign investment in Russian stocks and in
capital assets themselves have also risen sharply.
The entry of new money into the market makes Russia a more attractive investment
for us, since it can help increase the liquidity of some of our holdings. Two
leading clearing and depository agencies recently announced a plan to build a
unified depository system, which will make trading more efficient and further
encourage foreign investors to join us in Russia.
We are also pleased by events in the "Visegrad Four"-- the Czech Republic,
Hungary, Poland and Slovakia. These countries are furthest away from their
communist past. Reforms have progressed so far and so well that we believe these
four nations are now past the stage of highest risk. Their highly educated
workforces and their traditionally strong manufacturing bases have helped create
a stable economic environment with relatively low inflation, solid currencies
and sound fiscal policy.
As we continue to invest the Fund's assets into these countries, we will look
for those companies which offer excellent long-term growth prospects at
favorable market valuations and acceptable levels of risk. The special emerging
market risks of investing in Eastern Europe are still present, and that is why
we recommend you build your position in our fund over time using the ABC
Investment Plan(R).
Again, thank you for your investment in the Regent Eastern European Fund.
/s/P.D. Evernington
Peter Everington
Investment Strategist
4
<PAGE>
REGENT EASTERN EUROPEAN FUND
SECTOR DIVERSIFICATION OF EQUITY HOLDINGS
(PIE CHART PLOTTED FROM DATA IN TABLE BELOW)
<TABLE>
<CAPTION>
Sector % of Current
Market Value
<S> <C>
Metals Mining .... 6.29%
Chemicals ........ 9.35%
Pharmaceuticals .. 9.71%
Closed-End Fund .. 21.52%
Glass Works ...... 9.34%
Oil and Gas ...... 10.25%
Financial Services 7.75%
Electric Services 25.79%
100.00%
</TABLE>
GEOGRAPHIC DIVERSIFICATION OF EQUITY HOLDINGS
(PIE CHART PLOTTED FROM DATA IN TABLE BELOW)
Country % of Equity Holdings
Hungary 40.58%
Poland 17.09%
Russia 36.04%
Ukraine 6.29%
100.00%
5
<PAGE>
ADRIAN DAY GLOBAL OPPORTUNITY FUND
PORTFOLIO OF INVESTMENTS
April 30, 1997
COMMON AND PREFERRED STOCKS 23.58% SHARES VALUE
BANKS .29%
Krung Thai Bank Public Co., Ltd. 5,000 $ 6,221
BEVERAGES .33%
Buenos Aires Embotelladora, ADR 4,000 7,000*
CHEMICALS .83%
Millenium Chemicals, Inc. 1,000 17,750
ELECTRIC UTILITIES 3.68%
Empresa Nacional Electricidad, ADR 800 15,400
Energy Group PLC, ADR 1,000 31,375*
Enersis, ADR 1,000 31,500
--------
78,275
FINANCIAL SERVICES .65%
London Pacific Group, Ltd., ADR 1,000 13,875
INSURANCE .62%
Bangkok Insurance Public Co., Ltd. 1,000 13,094
INVESTMENT COMPANIES 2.50%
Brierley Investments, Ltd. 40,000 35,204
Korea Fund, Inc. 1,394 17,948
--------
53,152
MINING 9.35%
Corriente Resources, Inc. 2,000 17,533*
Eldorado Gold Corp, Ltd. 5,000 22,542*
Euro-Nevada Mining Corp. 1,000 28,696
Freeport-McMoran Copper & Gold, Inc.,
0% Preferred 1,000 29,750*
Minorco, ADR 1,000 22,250
Miramar Mining Corp. 3,500 12,398*
Newmont Mining Corp. 1,000 34,625
Pan American Silver Corp. 5,000 31,250*
--------
199,044
RETAIL 2.09%
Semi-Tech Corp., Class A 10,000 16,817
The Singer Company N.V. 1,500 27,750
--------
44,567
STEEL PRODUCERS .79%
Pohang Iron & Steel Company, Ltd., ADR 700 16,887
TELECOMMUNICATIONS 2.45%
Airtouch Communications, Inc. 1,000 25,500*
PLD Telekom, Inc. 5,000 26,562*
--------
52,062
--------
TOTAL COMMON STOCKS (cost $551,126) 501,927
See accompanying notes to the financial statements.
6
<PAGE>
ADRIAN DAY GLOBAL OPPORTUNITY FUND
UNITED STATES GOVERNMENT PRINCIPAL
OBLIGATIONS 75.85% AMOUNT VALUE
United States Treasury Bill,
4.60% yield, due 5/1/97
(cost $1,615,000) $1,615,000 $1,615,000
TOTAL INVESTMENTS 99.43% __________
(cost of $2,166,126) 2,116,927
Other assets and liabilities, net .57% 12,193
NET ASSETS 100% $2,129,120
==========
See accompanying notes to the financial statements.
7
<PAGE>
REGENT EASTERN EUROPEAN FUND
PORTFOLIO OF INVESTMENTS
April 30, 1997
COMMON STOCKS 36.82% SHARES VALUE
CHEMICALS & ALLIED PRODUCTS 3.44%
Borsodchem, GDR 1,150 $ 41,975
ELECTRIC SERVICES 9.49%
Unified Energy Systems 445,285 115,774*
GLASS & GLASSWARE 3.44%
Krosnienskie Huty Szkla 2,706 41,932
INVESTMENT COMPANIES 10.77%
Hungarian Investment Company 700 96,600*
Polish National Investment Fund 800 34,787*
--------
131,387
METAL MINING SERVICES 2.32%
Ashurst Technology, Ltd. 39,470 28,245*
PETROLEUM REFINING & RELATED PRODUCTS 3.78%
Lukoil Holdings, ADR 8104 46,032
PHARMACEUTICALS 3.58%
Egis RT 686 43,603
--------
TOTAL COMMON STOCKS (cost $412,574) 448,948
UNITED STATES GOVERNMENT PRINCIPAL
OBLIGATIONS 70.12% AMOUNT
United States Treasury Bill,
4.60% yield, due 5/1/97
(cost $855,000) $855,000 855,000
TOTAL INVESTMENTS 106.94% _________
(cost of $1,267,574) 1,303,948
Other assets and liabilities, net (6.94%) (84,597)
---------
NET ASSETS 100% $1,219,351
==========
* Non-income producing security
ADR - American Depository Receipt
GDR - Global Depository Receipt
See accompanying notes to the financial statements.
8
<PAGE>
STATEMENTS OF ASSETS AND LIABLILITIES
April 30, 1997
ADRIAN DAY REGENT
GLOBAL EASTERN
OPPORTUNITY EUROPEAN
ASSETS
Investments, at value (identified cost of
$2,166,126 and $1,267,574) $2,116,927 $1,303,948
Cash 10,374 3,727
Receivables:
Dividends 799 ---
From manager 2,753 5,226
Other 28 19
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Total Assets 2,130,881 1,312,920
LIABILITIES
Payables:
Investments puchased --- 87,733
Accounts payable and accrued expenses 1,761 5,836
Total Liabilities 1,761 93,569
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NET ASSETS $2,129,120 $1,219,351
========== ==========
NET ASSETS CONSIST OF:
Paid in capital $2,186,066 $1,181,582
Undistributed net investment income 5,959 1,137
Accumulated net realized gain (loss)
on investments and foreign currencies (13,706) 258
Net unrealized appreciation (depreciation)
of investments and other assets and
liabilities denominated in foreign
currencies (49,199) 36,374
Net assets applicable to capital shares
outstanding $2,129,120 $1,219,351
========== ==========
Capital shares outstanding, an
unlimited number of no par shares
authorized 222,941 117,730
========== ==========
NET ASSET VALUE, PER SHARE $9.55 $10.36
===== ======
See accompanying notes to the financial statements.
9
<PAGE>
STATEMENTS OF OPERATIONS
Period ended April 30, 1997
ADRIAN DAY REGENT
GLOBAL EASTERN
OPPORTUNITY EUROPEAN
NET INVESTMENT INCOME
INCOME:
Dividends $ 3,365 $
Foreign taxes withheld on dividends (496) ---
--------- --------
Net dividends 2,869
Interest and other 8,475 3,608
--------- --------
Total Income 11,344 3,608
--------- --------
EXPENSES:
Management Fee 2,870 1,014
Transfer agent fees and expenses 893 338
Accounting service fees and expenses 6,478 2,924
Legal and professional fees 152 47
Distribution plan expenses 538 190
Custodian fees 684 25
Shareholder reporting 15 9
Registration fees 3,682 3,002
Trustee's fees and expenses 38 9
Miscellaneous 42 139
--------- -------
Total expenses before reductions 15,392 7,697
Expenses reimbursed or offset (10,007) (5,226)
-------- -------
Net Expenses 5,385 2,471
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NET INVESTMENT INCOME (LOSS) 5,959 1,137
-------- -------
NET REALIZED AND UNREALIZED GAIN (LOSS)
ON INVESTMENTS
Realized gain (loss) from:
Securities (13,700) ---
Foreign currency transactions (6) 258
-------- -------
Net realized gain (loss) (13,706) 258
Net change in unrealized appreciation
(depreciation) of:
Investments (49,198) 36,374
Other assets and liabilities denominated in
foreign currencies (1) ---
Net change in unrealized appreciation
(depreciation) (49,199) 36,374
-------- -------
NET REALIZED AND UNREALIZED GAIN (LOSS)
ON INVESTMENTS (62,905) 36,632
-------- -------
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS $(56,946) $37,769
======== =======
See accompanying notes to the financial statements.
10
<PAGE>
STATEMENTS OF CHANGES IN NET ASSETS
Period ended April 30, 1997
ADRIAN DAY REGENT
GLOBAL EASTERN
OPPORTUNITY EUROPEAN
INCREASE (DECREASE) IN NET ASSETS
From investment operations:
Net investment income $ 5,959 $ 1,137
Net realized gain (loss) (13,706) 258
Net change in unrealized
appreciation (depreciation) (49,199) 36,374
----------- ---------
NET INCREASE (DECREASE) IN NET
ASSETS FROM INVESTMENT OPERATIONS (56,946) 37,769
DISTRIBUTIONS TO SHAREHOLDERS --- ---
----------- ---------
FROM CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold 2,387,820 1,181,582
Paid-in capital portion of short-term
trading fee 106 ---
---------- ---------
2,387,926 1,181,582
Cost of shares redeemed (201,860) ---
---------- ---------
NET INCREASE (DECREASE) IN NET ASSETS
FROM CAPITAL SHARE TRANSACTIONS 2,186,066 1,181,582
---------- ---------
NET INCREASE (DECREASE) IN NET ASSETS 2,129,120 1,219,351
NET ASSETS
Beginning of period --- ---
---------- ---------
END OF PERIOD (including undistributed net
investment income of $5,959 and $1,137,
respectively) $2,129,120 $1,219,351
========== ==========
CAPITAL SHARE ACTIVITY
Shares sold 243,949 117,730
Shares redeemed (21,008) ---
---------- ----------
Net share activity 222,941 117,730
========== ==========
See accompanying notes to the financial statements.
11
<PAGE>
NOTES TO FINANCIAL STATEMENTS APRIL 30, 1997
NOTE 1 SIGNIFICANT ACCOUNTING POLICIES
The Adrian Day Global Opportunity Fund ("Adrian Day Global") and the Regent
Eastern European Fund ("Eastern European"), collectively the "Funds," are each
diversified, open-end management investment companies registered under the
Investment Company Act of 1940. The Funds are two of four portfolios of U.S.
Global Accolade Funds (the "Trust"), a Massachusetts business trust. Adrian Day
Global commenced operations on February 20, 1997, and Eastern European on March
31, 1997.
The following is a summary of significant accounting policies consistently
followed by the Funds in the preparation of their financial statements. The
policies are in conformity with generally accepted accounting principles.
A. SECURITY VALUATIONS
Investments traded on national and international securities exchanges and NASDAQ
quoted securities are valued at the last sales price reported by the security's
primary exchange at the time of daily valuation. Listed and NASDAQ securities
for which no sale was reported, over-the-counter securities and corporate bonds
are valued at the mean between the last reported bid and ask prices, some of
which are obtained from one or more dealers that make markets in the securities.
Short-term investments with effective maturities of sixty days or less at the
date of purchase are valued at amortized cost, which approximates market value.
Securities for which market quotations are not readily available and securities
that are subject to legal or contractual restrictions on resale are valued at
fair value as determined by the Trustees.
B. SECURITY TRANSACTIONS AND INVESTMENT INCOME
Security transactions are accounted for on trade date. Realized gains and losses
from security transactions are determined on an identified cost basis. Dividend
income is recorded on the ex-dividend date or, in the case of certain foreign
securities, as soon as the information becomes available to the Funds. Interest
income, accretion of discount and amortization of the premium are recorded on an
accrual basis.
C. REPURCHASE AGREEMENTS
The Funds may enter into repurchase agreements with recognized financial
institutions or registered broker/dealers and, in all instances, hold underlying
securities with a value exceeding the total repurchase price, including accrued
interest. The Funds participate, with other Funds managed by the Manager, in a
joint repurchase agreement account where uninvested cash is collectively
invested in repurchase agreements for which each Fund has its respective
percentage of an undivided interest in the account.
12
<PAGE>
D. FOREIGN CURRENCY TRANSACTIONS
All or a significant portion of the Funds' assets may be invested in securities
of foreign issuers. The accounting records of each Fund are maintained in U.S.
dollars. At each net asset determination date the value of assets and
liabilities denominated in foreign currencies is translated into U. S. dollars
using the current exchange rate. Security transactions, income and expenses are
converted at the prevailing rate of exchange on the date of the event. The
effect of changes in foreign exchange rates on foreign denominated securities is
included with the net realized and unrealized gain or loss on securities. Other
foreign currency gains or losses are reported separately.
E. FEDERAL INCOME TAXES
The Funds intend to comply with the requirements of the Internal Revenue Code
applicable to regulated investment companies and to distribute all of their
taxable income to shareholders. Accordingly, no provision for federal income
taxes is required.
F. DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS
Dividends and distributions to shareholders are recorded by the Funds on the
ex-dividend date. Distributions are determined in accordance with income tax
regulations that may differ from generally accepted accounting principles;
accordingly, periodic reclassifications are made within each Funds capital
accounts to reflect income and gains available for distribution under income tax
regulations. The Funds make distributions from net investment income and
realized capital gains at least annually.
G. EXPENSES
Each Fund bears expenses incurred specifically on its behalf as well as an
allocation of Trust expenses. Short-term trading fees, collected from temporary
investors in the Funds, are applied as a reduction of expenses to the extent of
such related costs; any excess is credited as paid-in capital. Expense offset
arrangements have been made with the Funds' custodian whereby the custodian fees
are paid indirectly by credits earned on the Funds' cash balances. Such deposit
arrangements are an alternative to overnight investments.
13
<PAGE>
H. USE OF ESTIMATES IN FINANCIAL STATEMENT PREPARATION
The preparation of financial statements in conformity with generally accepted
accounting principles requires management to make estimates and assumptions that
affect the reported amounts of assets and liabilities, disclosure of contingent
assets and liabilities at the date of the financial statements, and the reported
amounts of income and expenses during the reporting period. Actual results could
differ from those estimates.
NOTE 2 RELATED PARTY TRANSACTIONS
U.S. Global Investors, Inc. (the "Manager"), under an investment advisory
agreement with the Trust in effect through March 8, 1988, furnishes management
and investment advisory services and, subject to the supervision of the
Trustees, directs the investments of the Funds in accordance with their
investment objectives, policies and limitations. The Manager also furnishes all
necessary office facilities, business equipment and personnel for administering
the affairs of the Trust. Frank E. Holmes, a Trustee of the Funds, is a
controlling owner of the Manager.
For the services of the Manager, each Funds pay a management fee at an annual
rate of 1.25% of its average net assets for Adrian Day Global and 1.25% of
average net assets for Eastern European. Fees are accrued daily and paid
monthly.
United Shareholder Services, Inc. ("USSI"), a wholly owned subsidiary of the
Manager, is transfer agent and accounting service agent for the Fund. Each Fund
pays an annual fee based on number of shareholder accounts for transfer agency
services. For maintaining the books and records of the Funds and calculating
their daily net asset value, USSI is paid a fee based upon the level of each
Funds average net assets, subject to a minimum fee. Additionally, the Manager is
reimbursed certain costs for in-house legal services pertaining to the Funds.
Each Fund has adopted a Distribution Plan pursuant to Rule 12b-1 of the
Investment Company Act of 1940 that allows an annual fee of up to 0.25% of its
average net assets to be used for, or to reimburse the Manager for, expenditures
in connection with sales and promotional services related to the distribution of
each Fund's shares.
The Manager has volunteered, for an indefinite period, to limit the annual
expenses of the Funds to 2.50% of average net assets for Adrian Day Global and
3.25% of average net assets for Eastern European.
During the period ended April 30, 1997, A & B Mailers, Inc., a wholly owned
subsidiary of the Manager, was paid $11 for mailing services provided to the
Funds.
14
<PAGE>
NOTE 3 INVESTMENT ACTIVITY
For the period ended April 30, 1997, purchases and sales of long-term
investments were $586,822 and $35,696, respectively, for Adrian Day Global.
Purchases for Eastern European were $412,574 with no sales.
The federal income tax basis of the securities owned by each Fund at April 30,
1997, was the same as the financial accounting basis. The tax basis components
of gross unrealized appreciation and depreciation were $7,006 and $56,204,
respectively, for Adrian Day Global and $36,983 and $609, respectively, for
Eastern European.
15
<PAGE>
FINANCIAL HIGHLIGHTS
For a capital share outstanding during the period ended April 30, 1997,
ADRIAN DAY REGENT
GLOBAL EASTERN
OPPORTUNITY* EUROPEAN**
NET ASSET VALUE, BEGINNING OF PERIOD....................... $10.00 $ 10.00
------ --------
INVESTMENT ACTIVITIES
Net investment income ................................... .06 .01
Net realized and unrealized gain (loss) ................. (.51) .35
Total from investment activities .......................... (.45) .36
DISTRIBUTIONS ............................................. -- --
------- --------
NET ASSET VALUE, END OF PERIOD ............................ $ 9.55 $ 10.36
======= ========
TOTAL RETURN (excluding account fees)..................... (4.50)% 3.60 %
Ratios to Average Net Assets (a):
Net investment income ................................... 2.77 % 1.49 %
Total expenses .......................................... 7.14 % 10.12 %
Expenses reimbursed or offset ........................... (4.64)% (6.87)%
Net expenses ............................................ 2.50 % 3.25 %
Average commission rate paid .............................. $ .0385 $.2211
Portfolio turnover rate ................................... 8 % 0 %
Net assets, end of period (in thousands)................... $2,129 $1,219
* From February 20, 1997 (commencement of operations).
** From March 31, 1997 (commencement of operations).
(a) Ratios are annualized for periods of less than one year. Expenses
reimbursed or offset reflect reductions to total expenses, as discussed in
the notes to the financial statements. Such amounts would decrease the net
investment income ratio had such reductions not occurred.
See accompanying notes to financial statements.
16
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