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U.S. GLOBAL ACCOLADE FUNDS
SEMI-ANNUAL REPORT
April 30, 1998
[Graphics: Photos of sections of various country currencies]
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U.S. GLOBAL ACCOLADE FUNDS
April 30, 1998
SEMI-ANNUAL REPORT
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(Graphic: U.S. Global Investors Logo)
U.S. GLOBAL ACCOLADE FUNDS APRIL 30, 1998
SEMI-ANNUAL REPORT
(Unaudited)
Contents
Letter to Shareholders 5
Fund Manager's Perspective 7
Portfolios of Investments 19
Statements of Assets and Liabilities 38
Statements of Operations 40
Statements of Changes in Net Assets 42
Notes to Financial Statements 46
Financial Highlights 51
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[Graphics: U.S. Global Investors Logo]
U.S. Global Investors, Inc.
P.O. Box 781234
San Antonio, Texas 78278-1234
Tel 1-800-US-FUNDS
Fax 210-308-1217
www.usfunds.com
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(Graphic: Picture of Frank E. Holmes)
Dear Shareholder,
During the past six months we have seen less Asian impact on U.S. stock markets
than was initially predicted. In the United States, inflation remained low, and
the economy grew at a healthy rate. The Dow Jones Industrial Average and the S&P
500 Index both reached record highs in mid-April. The U.S. dollar remained
strong during the period, and consumer confidence was high. Nonetheless,
political and economic problems continued to negatively affect markets in Asia,
and by association, emerging markets worldwide. The primary beneficiaries have
been U.S. equities, particularly those stocks in the Dow Jones Industrial
Average, as money moves from emerging markets into America's blue-chip stocks.
Among our Accolade Funds we are particularly proud of the Regent Eastern
European Fund which, in its first year of operations, was ranked the #1
performing fund out of 142 in the category of emerging markets for the year
ended 3/31/98, according to Lipper Analytical Services. The Fund seeks out the
most promising investments in the former Eastern Bloc countries of Eastern
Europe and Russia.
In the following pages you will find a fund-by-fund analysis of the factors that
have influenced your investment's performance. Also included are reports on
portfolio holdings, information on fund diversification, and financial
activities.
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Stay in touch with your investments by calling Portfolio Direct (1-800-US-FUNDS,
option #6) and listening to the insights of your fund manager. Our Investor
Alert (1-800-US-FUNDS, option #4) gives you insight into events occurring in the
marketplace on a weekly basis.
Remember to build your position in a fund gradually by investing on a regular
basis over time and allocating your assets wisely. If you have any questions
about the facts and figures found in these pages, or have suggestions for future
editions, don't hesitate to contact us.
Sincerely,
/s/ Frank Holmes
Frank Holmes
Chairman & CEO
U.S. Global Investors
P.S. Don't forget U.S. Global Investors offers 15 no-load funds to help you
invest in China, real estate, natural resources, precious metals, tax-free bonds
and blue-chip stocks. Our money market funds offer free, unlimited checkwriting
and competitive yields. For more information please call 1-800-US-FUNDS or visit
us on the Web at www.usfunds.com
Past performance does not guarantee future results. Investment return and
principle value will fluctuate. You may have a gain or a loss when you sell
shares. For more information, including charges and expenses call
1-800-US-FUNDS. Please read the prospectus carefully before investing.
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FUND MANAGER'S PERSPECTIVE
BONNEL GROWTH FUND
INTRODUCTION
The Fund focuses on mid-cap growth issues in three major sectors: health
care, technology and retailing. More growth is found in these industries
than most others. Our primary objective is long-term capital appreciation.
PERFORMANCE
The Fund was up 12.89% for the six month period ended April 30, 1998.
Our expense ratio is an annualized 1.74%.
PORTFOLIO PROFILE
The Fund had net assets of $109.8 million as of April 30, 1998. We are
fully invested with minimal cash holdings.
SIX MONTHS IN REVIEW
The Fund declined in November on market fears that Asian financial woes
would lead to reduced sales of American goods and services. The Fund
bounced off its lows in January and has since risen steadily. The problems
in Asia have had one positive effect in that the Federal Reserve Board will
probably not raise interest rates in May. As a result, the economy and the
stock market should continue their upward trend. The stock market reached
record highs in April before retreating slightly. The U.S. dollar remains
strong. The commodity indices have shown little upside inflationary
pressure which should help keep interest rates steady. The Asian market
for technological goods declined due to currency devaluations and consumer
fears, but the cost of producing goods fell, resulting in higher profit
margins for those corporations which manufacture equipment in Asia. There
is tremendous liquidity in the market, and money continues to flow into
index and blue chip stocks. However, investors seem to be returning to mid-
cap stocks, especially those with good liquidity, in an effort to find
better value. The period saw several mega-mergers including that of Citi-
corp and Traveler's Insurance. We expect this sort of consolidation to
continue as smaller players merge to create economies of scale in such
areas as research and development, marketing, and manufacturing. Such con-
solidations will reduce the number of available shares, which may have a
positive effect on mid-cap stocks.
INVESTMENT HIGHLIGHTS
The Fund has maintained diversity while looking for quality growth. Our
holdings in the retail and health sectors continue to perform admirably.
We like the Gap which is opening new stores in its retail chain, including
Banana Republic and Old Navy. We also like a number of pharmaceuticals
which are closing in on arthritis, diabetes, and even cancer. Pfizer is a
great company with a strong product line and more great products in the
pipeline. Schering-Plough and Warner-Lambert are also companies of note
in the pharmaceuticals field. As a reminder, Fund holdings are subject to
change as these issues are constantly being evaluated. Any holdings
mentioned here should not be taken as a recommendation.
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BONNEL GROWTH FUND
CURRENT OUTLOOK
The U.S. economy is on a solid footing. Unemployment is at a 28 year low.
Hopefully we've seen the worst that Asia has to offer. Our current outlook
for the coming year is positive. However, inflation may become more of an
issue in the coming months. The tremendous liquidity in the stock market
means investors are likely to turn their attention to undervalued stocks
during the next few quarters. Retail sales on the Internet are exploding,
making this a highly lucrative field. We like stocks related to the coming
of digital television, and we are looking for continued strength in retail-
ing.
TOP 10 HOLDINGS BASED ON TOTAL INVESTMENTS
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CISCO SYSTEMS, INC. 3.36%
COMPUTERS & DATA PROCESSING
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GAP, INC. 3.31%
APPAREL
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XEROX 3.13%
PHOTOGRAPHIC EQUIPMENT
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LEGATO SYSTEMS, INC. 2.90%
COMPUTER SOFTWARE
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SAFESKIN CORP. 2.62%
FABRICATED RUBBER PRODUCTS
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WARNER-LAMBERT CO. 2.61%
PHARMACEUTICALS
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BIOGEN, INC. 2.44%
HEALTHCARE EQUIPMENT & SERVICES
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SCHERING-PLOUGH CORP. 2.21%
PHARMACEUTICALS
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THERAGENICS CORP. 2.09%
HEALTHCARE EQUIPMENT & SERVICES
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KEANE, INC. 2.08%
COMPUTER SOFTWARE
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OTHER 73.25%
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TOP 5 INDUSTRIES - BASED ON TOTAL INVESTMENTS
Electronics & Components 7.88%
Computers & Data Processing 8.56%
Pharmaceuticals 9.03%
Healthcare Equipment & Services 9.56%
Computer Software 11.65%
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FUND MANAGER'S PERSPECTIVE
MEGATRENDS FUND
INTRODUCTION
The Fund's portfolio primarily holds equity investments in order to maximize
safe growth potential, while having the flexibility to shift assets into
bonds and money market securities when we believe they offer better perform-
ance and a higher level of safety than stocks.
PERFORMANCE
The Fund is up 12.16% for the six month period ended April 30, 1998. Our ex-
pense ratio is an annualized 2.16%.
PORTFOLIO PROFILE
The Fund had net assets of $26.4 million as of April 30, 1998.
SIX MONTHS IN REVIEW
Although real short-term interest rates have been rising, equity prices
continue to move higher, credit has been readily available and nominal long-
term interest rates are near their lowest levels in decades. This growth in
the money supply coupled with low consumer prices has fueled a burst of
domestic spending which has furthered the expansion of the U.S. economy.
Historically, economic growth creates inflation as labor and commodity
prices rise in conjunction with increased growth and consumption.Yet despite
the lowest unemployment figures in nearly three decades, any wage inflation
was offset by higher productivity, lower commodity costs due to lack of
demand in Asia, and lower prices on imported goods due to the strong U.S.
dollar. As a result, the U.S. economy continued its trend of strong growth
and low inflation with only a nominal increase in interest rates by the
Federal Reserve in March of 1998.
The continuing Asian economic crisis has not yet shown a significant impact
on American corporate earnings, and what effect it will have remains to be
seen. Nonetheless, market averages made new highs in April before retreating
slightly to end the period. Like last year the gains in the past six months
were largely concentrated in blue-chip stocks as investors looked to the
relative safety of America's large-caps.
INVESTMENT HIGHLIGHTS
During the period, Berkshire Hathaway became our largest holding. Captained
by one of the shrewdest investors of all-time, Berkshire Hathaway has among
its holdings some of the best franchises in the world. Investing in
Berkshire Hathaway is an excellent way to achieve one of the Fund's
objectives which is to own companies with worldwide franchises. We are also
encouraged that Mr. Buffet has shown flexibility by taking action to hedge
his holdings. Berkshire Hathaway is now our largest holding and should
continue to hold that distinction for the foreseeable future.
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FUND MANAGER'S PERSPECTIVE
MEGATRENDS FUND
Another of the Fund's holdings, Sotheby's, offers a world-class franchise
in a small-cap package and stands to capitalize on increasing worldwide
incomes. Despite current low earnings, the fundamentals for oil stocks
remain excellent. Future earnings estimates are still strong for the in-
dustry, and even with declining consumption in Asia, the world is producing
95% capacity in oil. Gold stocks, which comprise only a small holding in
the Fund, did not recover during the period. As a reminder, Fund holdings
are subject to change as these issues are constantly being evaluated. Any
holdings mentioned here should not be taken as a recommendation.
CURRENT OUTLOOK
While Asia is a concern for corporate earnings going forward, of greater
concern is the threat of wage inflation as employment levels and wages
reach the highest levels in decades. As a result, there is some indication
that inflation will become a factor in the coming months. Conversely,Asia's
problems could worsen, further putting a drag on the global economy and
counter-acting inflationary pressures. While at this time the economic
outlook is extremely difficult to predict, the Fund is poised to take
advantage of a variety of market environments.
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FUND MANAGER'S PERSPECTIVE
MEGATRENDS FUND
TOP 10 HOLDINGS BASED ON TOTAL INVESTMENTS
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BERKSHIRE HATHAWAY, INC. 7.79%
HOLDING COMPANY
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SOTHEBY'S HOLDINGS, INC. 5.67%
BUSINESS SERVICES
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ALPINE GROUP, INC. 4.72%
CORDAGE & TWINE
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SONY CORP. 4.50%
COMMUNICATIONS EQUIPMENT
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PIONEER HI-BRED INTERNATIONAL, INC. 4.28%
FARMING
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CHEVRON CORP. 3.75%
PETROLEUM REFINING
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BRE PROPERTIES, INC. 3.48%
REAL ESTATE INVESTMENT TRUST
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MICROSOFT CORP. 3.41%
COMPUTERS & DATA PROCESSING
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HARTFORD FINANCIAL SERVICES GROUP, INC. 3.35%
INSURANCE
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NEW PLAN REALTY TRUST 3.33%
REAL ESTATE INVESTMENT TRUST
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OTHER 55.72%
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TOP 5 INDUSTRIES - BASED ON TOTAL INVESTMENTS
Oil & Gas Extraction & Services 7.97%
Holding Company 7.79%
Metal Mining 7.49%
Real Estate Investment Trust 6.80%
Insurance 5.84%
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FUND MANAGER'S PERSPECTIVE
ADRIAN DAY GLOBAL OPPORTUNITY FUND
INTRODUCTION
The Fund invests in stocks of blue-chip and emerging companies around the
world in order to achieve long-term growth of capital.
PERFORMANCE
The Fund is down 3.54% for the six month period ended April 30, 1998.
PORTFOLIO PROFILE
The Fund had net assets of $3.3 million as of April 30, 1998. Our expense
ratio is an annualized 3.71%.
SIX MONTHS IN REVIEW
Major global equity markets are over-valued by traditional yardsticks and
vulnerable to higher interest rates or other shocks. This general over-
valuation means looking for value in overlooked or unusual corners. Indeed,
we have found good value in individual stocks in many major markets, in-
cluding Britain, Switzerland, Australia, and Canada. Many of these great
global companies and household names still represent value, and are perhaps
temporarily depressed because of one problem or another - while others are
overlooked values.
Most of the Fund's decline occurred in the last part of 1997, as markets in
Asia retreated an unprecedented amount over a short period. Many markets
were down 50 - 90% in a matter of months. Although there was some prior
concern about these markets, few, if any, foresaw the magnitude and speed
with which it would happen. In addition, the decline in Asia had an effect
on the established markets and on resources, due to concerns over reduced
corporate earnings and lack of demand respectively.
The resource sector-particularly the gold stocks-fell sharply at the end of
the year, adding to declines that had taken place throughout the year.
Although the Fund held only relatively moderate positions in Asia and in
gold stocks, the devastation in these sectors had a negative impact on the
Fund's overall performance.
INVESTMENT HIGHLIGHTS
This calendar year - the second half of our six-month period under review -
saw a recovery in Asia and global markets. Asia subsequently turned down
again on events in Indonesia, while many major markets look wobbly due to
concerns over low earnings, higher interest rates and over valuations.
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FUND MANAGER'S PERSPECTIVE
ADRIAN DAY GLOBAL OPPORTUNITY FUND
We used the rallies in Asia to trim some of our positions, although on a
longer term basis, we would look to buy deeply depressed assets for long-
term recoveries.
We have found value in developing markets and sectors like gold and oil.
We are using the softness in the resource sector, including oil and pre-
cious metals, to continue to build positions in strong companies, particu-
larly in silver, oil and gold.In these sectors we have looked for companies
with strong balance sheets and operations in several countries.
We are also buying major companies that offer reasonable value in over-
valued markets. We are still holding approximately 28% of our total assets
in cash and cash equivalents, less than our previous report, as we deploy
the cash to take advantage of opportunities.
Our largest individual holdings are dominated by the resource sector, but
this can be deceptive. Our gold and silver holdings, in particular, tend to
be fairly concentrated among fewer, better names, whereas our holdings
in banking, communications, financial services, and utilities tend to be
much more diversified.
For example, we hold over twice as much in banking stocks worldwide as we
do in silver, yet two of our three silver companies show up in our top ten
holdings and only one bank. Similarly, we have more in financial service
stocks than in silver, yet none of our financial service stocks ranks in
our top ten holdings.
Also the total value of our holdings in gold mining equities is approxi-
mately the same as our non-resource holdings in Chile, Britain and the US.
Yet not a single non-resource company from any of those countries shows up
in our top ten holdings, although several individual gold stocks do.
CURRENT OUTLOOK
As I look ahead, the major global markets look over-valued and vulnerable,
giving rise to a cautious stance. In Japan, the banking sector is on the
brink of disaster, and Asia has a long, deep, recession ahead. We continue
to buy quality stocks that we believe will not be hurt too much in the
downturn and that we would be comfortable holding throughout a downturn.
Our cash position allows us to take advantage of opportunities as they
arise.
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ADRIAN DAY GLOBAL OPPORTUNITY FUND
TOP 10 HOLDINGS BASED ON TOTAL INVESTMENTS
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FREEPORT MCMORAN COPPER & GOLD 4.54 %
GOLD & SILVER MINING
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EURO-NEVADA MINING CORP. 2.52 %
GOLD MINING
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INCO, LTD. 2.41 %
BASE METAL MINING
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NEWMONT MINING CORP. 2.31 %
GOLD MINING
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BRIERLEY INVESTMENT, LTD. 2.16 %
DIVERSIFIED OPERATIONS
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IMC GLOBAL, INC. 2.02 %
FERTILIZER
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FRANCO NEVADA MINING CORP., LTD. 1.83 %
GOLD MINING
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MINORCO SA 1.62 %
DIVERSIFIED MINING
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PAN AMERICAN SILVER 1.56 %
SILVER MINING
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HSBC HOLDINGS PLC 1.42 %
BANKS
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OTHER 77.61 %
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TOP 5 INDUSTRIES - BASED ON TOTAL INVESTMENTS
Diversified Operations 4.33%
Oil & Gas Extraction & Services 5.44%
Banks 6.88%
Diversified Mining 7.94%
Gold Mining 12.63%
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FUND MANAGER'S PERSPECTIVE
REGENT EASTERN EUROPEAN FUND
INTRODUCTION
The Regent Eastern European Fund seeks to achieve long-term capital growth
by investing in dynamic companies in the emerging markets of Eastern Europe
including Russia and other countries within the former Soviet Union.
PERFORMANCE
The Fund is up 5.99% for the six month period ended April 30, 1998. Our ex-
pense ratio is an annualized 3.25%. The Fund was ranked #1 out of 142
emerging market funds for the year ended March 31, 1998, by Lipper Ana-
lytical Services. The period was, on the whole, a strong one for the major
Eastern European markets.
PORTFOLIO PROFILE
The Fund had net assets of $9.8 million as of April 30, 1998.
SIX MONTHS IN REVIEW
The major focus of the Fund is on the larger, more developed markets in
the region, namely Russia, Hungary, Poland and the Czech Republic.
Positive performance in the past six months was the result of a generally
strong performance by Central European markets; Poland was up 18%, and
Hungary was up 14% during the period. The major negative component of our
portfolio was the Russian equity market, which fell by 18% during the
period. The past six months were characterized by a general downturn in
emerging market performance world-wide which created a certain level of
negative investment sentiment towards this asset class. It began with the
Asian crisis in the middle of last year. The negative undertones in emerg-
ing markets have been further exacerbated by the weakness of the rand in
South Africa, the largest emerging market, and political problems in
Brazil, the largest country in Latin America. Whilst none of these problems
occurred within Central and Eastern Europe, they have ultimately impacted
the region as emerging markets as an asset class are viewed negatively.
The biggest impact has been on Russia due to the continued high real inter-
est rates and falling oil and gas prices. Domestic government bonds have
increased in yield from 30% to 80% due to the Central Bank's determination
to protect the currency. They are demonstrating to the investment world
that they can maintain a stable currency, one of the prerequisites for
inflows of both foreign direct investment and portfolio investment. Eastern
Europe has been hurt by the level of high interest rates which have
threatened the ruble and hurt the equity markets. We do not believe that
there will be any devaluation in the Russian currency. Therefore, whilst
the equity market has suffered due to currency concerns, we believe that
the outlook given the stable ruble and a new tax code is very positive over
the next six months.
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REGENT EASTERN EUROPEAN FUND
In March, Yeltsin fired his entire cabinet in an attempt to eliminate
all political opposition to his chosen presidential successor in the June
2000 elections. The interim Prime Minister, who was previously unknown in
international circles, is likely to be voted in on a full time basis,
further strengthening Yeltsin's hand. Russia continues to suffer due to
unusually low commodity prices, specifically oil and gold, which are two
key components of the Russian economy and which each reached historic lows
in January and February. Nonetheless, Russia's earnings growth and GDP
growth are expected to be positive for 1998.
INVESTMENT HIGHLIGHTS
The Polish market was the best performing market in the region over the
period. After two years of under-performance by Poland, we are finally
starting to see the benefits of tight fiscal and monetary policy and the
benefits of equity capital raising as opposed to debt financing. Poland
currently has the highest real interest rates in Central Europe. We expect
these to fall dramatically over the next six months, and combined with the
pick up in US dollar earnings, we are very positive for the Polish equity
market going forward.
The Hungarian market has continued its upward progression. Hungary has the
highest quality companies and the highest quality company management in the
region. Following the major advances in privatization in 1995, Hungary has
been the best performing equity market in Central Europe over the past two
years. While the rate of growth might slow, we still believe that the
Hungarian market offers substantial value, and that Hungary will be the
first member of the European Union enlargement. Therefore we maintain
our high weighting in Hungarian equities.
CURRENT OUTLOOK
Central and Eastern Europe are now very much integrated in the global
emerging market scene. Whilst money is flowing out of global emerging
markets, it will be very hard for the Central and Eastern European equity
markets to perform. We do believe, however, that the rating of these equity
markets is attractive relative to any other emerging market region, and any
reversal in the flow of money will prove a substantial benefit to these
markets.
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FUND MANAGER'S PERSPECTIVE
REGENT EASTERN EUROPEAN FUND
TOP 10 HOLDINGS BASED ON TOTAL INVESTMENTS
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MOL MAGYAR OLAJ-ES GAZIPARI RT. 11.24 %
OIL & GAS EXTRACTION
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UNIFIED ENERGY SYSTEMS 7.12 %
ELECTRIC SERVICES
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BORSODCHEM RT. 5.83 %
CHEMICALS
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HUNGARIAN INVESTMENT CO., LTD. 5.65 %
INVESTMENT COMPANIES
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KGHM POLSKA MIEDZ 4.78 %
METALS MINING
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VIMPEL-COMMUNICATIONS 4.42 %
COMMUNICATIONS
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ROSTELEKOM 4.08 %
COMMUNICATIONS
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LUKOIL HOLDING 3.98 %
OIL & GAS EXTRACTION
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A.O. TATNEFT 3.75 %
OIL & GAS EXTRACTION
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IRKUTSKENERGO 3.70 %
ELECTRIC SERVICES
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OTHER 45.45 %
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TOP 5 INDUSTRIES - BASED ON TOTAL INVESTMENTS
Chemicals 5.83%
Commercial Banks 7.46%
Communications 10.36%
Electric Services 10.93%
Oil & Gas Extraction 18.97%
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NOTES
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<PAGE>
PORTFOLIO OF INVESTMENTS APRIL 30, 1998
BONNEL GROWTH FUND
COMMON STOCKS 98.81% Shares Value
Aerospace 0.27%
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Raytheon Co., Class A 510 $ 28,146
Thiokol Corp. 5,000 269,375*
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297,521
Air Transportation 0.37%
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Southwest Airlines Co. 15,000 411,562
Aircraft 2.21%
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AAR Corp. 40,000 1,047,500
Sundstrand Corp. 20,000 1,381,250
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2,428,750
Apparel 5.80%
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Dress Barn 20,000 582,500*
Gap, Inc. 70,000 3,600,625
Jones Apparel Group, Inc. 20,000 1,196,250
Pacific Sunwear of California 22,500 992,812*
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6,372,187
Appliances 0.77%
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Maytag Corp. 10,000 515,000
Premark International, Inc. 10,000 333,750
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848,750
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PORTFOLIO OF INVESTMENTS
BONNEL GROWTH FUND
COMMON STOCKS Shares Value
Building Products 2.83%
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Armstrong World Industries, Inc. 5,000 $ 428,750
Fleetwood Enterprises, Inc. 20,000 923,750
Lowe's Companies, Inc. 20,000 1,398,750
Southdown, Inc. 5,000 353,750
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3,105,000
Business Services 7.16%
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AC Nielsen Corp. 10,000 280,000*
American Management Systems 5,000 144,688*
Catalina Marketing Corp. 20,000 1,040,000*
Comdisco, Inc. 45,000 1,991,250
Concord EFS, Inc. 38,000 1,197,000*
Pre-Paid Legal Services, Inc. 20,000 756,250*
Sapient Corp. 40,000 1,975,000*
Scientific Atlanta, Inc. 20,000 477,500
---------------
7,861,688
Carpets & Rugs 0.42%
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Mohawk Industries, Inc. 15,000 463,125*
Commercial Services 2.05%
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Abacus Direct Corp. 15,000 853,125*
Billing Concepts Corp. 50,000 1,400,000*
---------------
2,253,125
Computer Software 11.56%
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Analysts International Corp. 22,500 652,500
Applied Voice Technology, Inc. 35,000 1,544,375*
Baan Co. NV 10,000 443,750*
Citrix Systems, Inc. 15,000 931,875*
JDA Software Group, Inc. 10,000 505,625*
Keane, Inc. 45,000 2,261,250*
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<PAGE>
PORTFOLIO OF INVESTMENTS
BONNEL GROWTH FUND
COMMON STOCKS Shares Value
Computer Software (cont'd)
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Legato Systems, Inc. 100,000 $ 3,162,500*
Mercury Interactive Corp. 10,000 405,000*
Oracle Corp. 10,000 258,750*
Peoplesoft, Inc. 10,000 465,000*
Platinum Technology, Inc. 20,000 510,000*
Siebel Systems, Inc. 60,000 1,552,500*
---------------
12,693,125
Computers & Data Processing 8.49%
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Analytical Surveys, Inc. 5,000 162,500*
Cisco Systems, Inc. 50,000 3,662,500*
Lexmark International Group, Class A 35,000 2,025,625*
Smart Modular Technologies, Inc. 30,000 740,625*
Sun Microsystems, Inc. 50,000 2,059,375*
Unisys Corp. 30,000 673,125*
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9,323,750
Cosmetics & Toiletries 1.05%
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Playtex Products, Inc. 10,000 154,375*
The Estee Lauder Cos., Inc., Class A 15,000 996,563
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1,150,938
Diversified Operations 1.29%
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PPG Industries, Inc. 20,000 1,413,750
Education 0.90%
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Sylvan Learning Systems, Inc. 20,000 987,500*
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<PAGE>
PORTFOLIO OF INVESTMENTS
BONNEL GROWTH FUND
COMMON STOCKS Shares Value
Electronics & Components 7.82%
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Alpha Industries, Inc. 25,000 $ 440,625*
American Power Conversion Corp. 15,000 482,813*
Anaren Microwave, Inc. 50,000 906,250*
Bel Fuse, Inc. 15,000 443,437*
EG&G, Inc. 50,000 1,506,250
Emerson Electric Co. 10,000 636,250
Harris Corp. 15,000 725,625
Maxim Integrated Products, Inc. 15,000 605,625*
Tektronix, Inc. 15,000 645,000
Uniphase Corp. 30,000 1,627,500*
Xylan Corp. 20,000 569,375*
---------------
8,588,750
Fabricated Rubber Products 2.60%
- - --------------------------------------------------------------------------------
Safeskin Corp. 80,000 2,850,000*
Financial Services 4.29%
- - --------------------------------------------------------------------------------
A.G Edwards, Inc. 30,000 1,350,000
Charles Schwab Corp. 20,000 700,000
Paine Webber Group, Inc. 35,000 1,568,438
Paychex, Inc. 20,000 1,086,250
---------------
4,704,688
Glass Containers & Products 0.92%
- - --------------------------------------------------------------------------------
Gentex Corp. 30,000 1,012,500*
Healthcare Equipment & Services 9.49%
- - --------------------------------------------------------------------------------
Arterial Vascular Engineer, Inc. 5,000 176,875*
Becton Dickinson & Co. 20,000 1,392,500
Biogen, Inc. 60,000 2,662,500*
Genentech, Inc. Call/Put Common Shares 10,000 692,500*
Insight Enterprises, Inc. 20,000 797,500*
IOMED, Inc. 10,000 75,000*
MedQuist, Inc. 15,000 731,250*
National Surgery Centers, Inc. 5,000 141,875*
Omnicare, Inc. 20,000 685,000
Res-Care, Inc. 20,000 782,500*
Theragenics Corp. 80,000 2,280,000*
---------------
10,417,500
- - -22-
<PAGE>
PORTFOLIO OF INVESTMENTS
BONNEL GROWTH FUND
COMMON STOCKS Shares Value
Leisure & Recreation 1.17%
- - --------------------------------------------------------------------------------
Family Golf Centers, Inc. 15,000 $ 631,875*
International Game Technology 10,000 278,125
Radica Games, Ltd. 20,000 378,750*
---------------
1,288,750
Machinery 3.36%
- - --------------------------------------------------------------------------------
Cincinnati Milacron, Inc. 10,000 310,625
Kuhlman Corp. 40,000 1,960,000
Manitowoc Co., Inc. 15,000 699,375
Orbotech Ltd. 20,000 722,500*
---------------
3,692,500
Manufacturing 0.32%
- - --------------------------------------------------------------------------------
Illinois Tool Works 5,000 352,500
Motor Vehicles 1.06%
- - --------------------------------------------------------------------------------
Winnebago Industries, Inc. 100,000 1,162,500
Office Equipment 0.27%
- - --------------------------------------------------------------------------------
Herman Miller, Inc. 10,000 301,875
Oil & Gas Extraction Services 0.40%
- - --------------------------------------------------------------------------------
Rowan Companies, Inc. 15,000 441,562*
Paper & Allied Products 0.48%
- - --------------------------------------------------------------------------------
International Paper Co. 10,000 521,875
- - -23-
<PAGE>
PORTFOLIO OF INVESTMENTS
BONNEL GROWTH FUND
COMMON STOCKS Shares Value
Pharmaceuticals 8.96%
- - --------------------------------------------------------------------------------
Biovail, Corp. 20,000 $ 817,500*
Jones Medical Industries, Inc. 20,000 590,000
Medco Research, Inc. 10,000 203,750*
Pfizer, Inc. 15,000 1,707,188
Rexall Sundown, Inc. 40,000 1,277,500*
Schering-Plough Corp. 30,000 2,403,750
Warner-Lambert Co. 15,000 2,837,812
---------------
9,837,500
Photographic Equipment 3.63%
- - --------------------------------------------------------------------------------
Eastman Kodak Co. 8,000 577,500
Xerox 30,000 3,405,000
---------------
3,982,500
Private Corrections 0.48%
- - --------------------------------------------------------------------------------
Wackenhut Corrections Corp. 20,000 522,500*
Retail 1.98%
- - --------------------------------------------------------------------------------
Pier 1 Imports, Inc. 25,000 659,375
Wal-Mart Stores, Inc. 30,000 1,516,875
---------------
2,176,250
Satellite Networks 0.70%
- - --------------------------------------------------------------------------------
Gilat Satellite Networks, Ltd. 20,000 765,000*
Semiconductors 1.49%
- - --------------------------------------------------------------------------------
Level One Communications 52,500 1,634,062*
Telecommunications 1.44%
- - --------------------------------------------------------------------------------
Lucent Technologies 10,000 761,250
Premisys Communications, Inc. 20,000 583,750*
Teleflex, Inc. 5,400 229,500
---------------
1,574,500
- - -24-
<PAGE>
PORTFOLIO OF INVESTMENTS
BONNEL GROWTH FUND
COMMON STOCKS Shares Value
Transportation 2.78%
- - --------------------------------------------------------------------------------
Comair Holdings, Inc. 25,000 $ 682,813
Swift Transportation Co. 10,000 228,750*
US Freightways Corp. 60,000 2,145,000
---------------
3,056,563
- - --------------------------------------------------------------------------------
Total Common Stocks 108,494,646
- - --------------------------------------------------------------------------------
(cost $91,439,187)
Principal
REPURCHASE AGREEMENT 0.40% Amount
Joint Repurchase Agreement
Account, J.P. Morgan Co.,
4/30/98, 5.51%, due 5/1/98,
repurchase price $441,464,
collateralized by U.S.
Treasury securities held in
a joint repurchase account
(cost $441,397) $ 441,397 441,397
- - --------------------------------------------------------------------------------
Total Investments 99.21% $108,936,043
- - --------------------------------------------------------------------------------
(cost $91,880,584)
Other assets and liabilities,
net 0.79% 862,436
---------------
NET ASSETS 100% $109,798,479
============
*Non-income producing security
See accompanying notes to financial statements.
- - -25-
<PAGE>
PORTFOLIO OF INVESTMENTS APRIL 30, 1998
MEGATRENDS FUND
COMMON STOCKS 90.55% Shares Value
Aircraft 3.03%
- - --------------------------------------------------------------------------------
The Boeing Co. 16,000 $ 801,000
Beverages 1.21%
- - --------------------------------------------------------------------------------
The Coca Cola Co. 4,200 318,675
Building Products 4.54%
- - --------------------------------------------------------------------------------
International Comfort Products Corp. 30,000 330,000*
Royal Group Technologies Ltd. 28,000 869,750*
---------------
1,199,750
Business Services 5.68%
- - --------------------------------------------------------------------------------
Sotheby's Holdings, Inc., Class A 65,000 1,499,062
Communications Equipment 4.50%
- - --------------------------------------------------------------------------------
Sony Corp., ADR 14,000 1,189,125
Computers & Data Processing 3.41%
- - --------------------------------------------------------------------------------
Microsoft Corp. 10,000 901,250*
Cordage & Twine 4.73%
- - --------------------------------------------------------------------------------
Alpine Group, Inc. 60,000 1,248,750*
Electronics & Components 3.58%
- - --------------------------------------------------------------------------------
Hitachi Ltd., ADR 7,500 541,875
Intel Corp. 5,000 404,062
---------------
945,937
Entertainment 2.35%
- - --------------------------------------------------------------------------------
Walt Disney Co. 5,000 621,562
Farming 4.29%
- - --------------------------------------------------------------------------------
Pioneer Hi-Bred International, Inc. 30,000 1,132,500
Financial Services 1.81%
- - --------------------------------------------------------------------------------
Fannie Mae 8,000 479,000
Food Stores 1.36%
- - --------------------------------------------------------------------------------
General Nutrition Co. 10,000 358,750*
- - -26-
<PAGE>
PORTFOLIO OF INVESTMENTS
MEGATRENDS FUND
COMMON STOCKS Shares Value
Forestry 3.27%
- - --------------------------------------------------------------------------------
Weyerhaeuser Co. 15,000 $ 864,375
Healthcare Equipment 4.85%
- - --------------------------------------------------------------------------------
Pfizer, Inc. 6,000 682,875
ThermoTrex Corp. 30,000 598,125*
---------------
1,281,000
Holding Company 7.79%
- - --------------------------------------------------------------------------------
Berkshire Hathaway, Inc., Class A 30 2,058,000*
Household Appliances 2.26%
- - --------------------------------------------------------------------------------
General Electric Co. 7,000 595,875
Insurance 5.85%
- - --------------------------------------------------------------------------------
American International Group, Inc. 5,000 657,813
Hartford Financial Services Group, Inc. 8,000 886,000
---------------
1,543,813
Metal Mining 7.50%
- - --------------------------------------------------------------------------------
Barrick Gold Corp. 14,000 314,125
Cyprus Amax Minerals Co. 40,000 690,000
Newmont Mining Corp. 24,000 772,500
TVX Gold, Inc. 50,000 203,125*
---------------
1,979,750
Oil & Gas Extraction & Services 7.97%
- - --------------------------------------------------------------------------------
Apache Corp. 12,000 424,500
ENSCO International Inc. 10,000 282,500
Rowan Companies, Inc. 25,000 735,938*
Schlumberger Ltd. 8,000 663,000
---------------
2,105,938
Petroleum Refining 3.76%
- - --------------------------------------------------------------------------------
Chevron Corp. 12,000 992,250
- - -27-
<PAGE>
PORTFOLIO OF INVESTMENTS
MEGATRENDS FUND
COMMON STOCKS Shares Value
Real Estate Investment Trust 6.81%
- - --------------------------------------------------------------------------------
BRE Properties, Inc., Class A 35,000 $ 918,750
New Plan Realty Trust 36,000 879,750
---------------
1,798,500
- - --------------------------------------------------------------------------------
Total Common Stocks 23,914,862
- - --------------------------------------------------------------------------------
(cost $17,642,476)
Principal
Amount
UNITED STATES GOVERNMENT
OBLIGATION 2.49%
United States Treasury
Coupon Strips Due 02/15/22
(cost $660,459) $ 2,850,000 657,528
REPURCHASE AGREEMENT 7.04%
- - --------------------------------------------------------------------------------
Joint Repurchase Agreement
Account, J.P. Morgan Co.,
4/30/98, 5.51%, due 5/1/98,
repurchase price $1,859,218,
collateralized by U.S.
Treasury securities held in
a joint repurchase account
(cost $1,858,937) $ 1,858,937 1,858,937
- - --------------------------------------------------------------------------------
Total Investments 100.08% 26,431,327
- - --------------------------------------------------------------------------------
(cost $20,161,872)
Other assets and liabilities,
net (0.08)% (20,415)
---------------
NET ASSETS 100% $ 26,410,912
============
ADR - American Depository Receipt
* Non-income producing security
See accompanying notes to financial statements.
- - -28-
<PAGE>
PORTFOLIO OF INVESTMENTS APRIL 30, 1998
ADRIAN DAY GLOBAL OPPORTUNITY FUND
COMMON AND PREFERRED STOCKS 70.79% Shares Value
Agriculture 0.82%
- - --------------------------------------------------------------------------------
United Palm Oil Industry 25,000 $ 26,843
Air Transportation 1.48%
- - --------------------------------------------------------------------------------
Linea Aerea Nacional Chile SA, ADR 2,000 27,250*
Sairgroup 16 20,913
---------------
48,163
Banks 6.77%
- - --------------------------------------------------------------------------------
Australia & New Zealand Banking
Group, Ltd. 4,000 27,924
Banco BHIF, ADR 1,500 18,656
Banco Frances Del Rio Plata, ADR 1,000 29,063
Bank Fuer International Zahlungs 5 32,643
Bank International Settlements 3 18,886
HSBC Holdings plc 1,600 45,649
Security Bank Corp. 50,000 25,218*
Thai Farmers Bank Public Co., Ltd. 10,000 22,898
---------------
220,937
Base Metal Mining 2.69%
- - --------------------------------------------------------------------------------
Inco, Ltd. 1,000 17,562
Inco, Ltd. Class VBN 5,000 59,688
Yuma Copper Co. Units (RS) 60,000 10,407*
---------------
87,657
Beverages 0.00%
- - --------------------------------------------------------------------------------
Buenos Aires Embotelladcra, ADR 4,000 0*
- - -29-
<PAGE>
PORTFOLIO OF INVESTMENTS
ADRIAN DAY GLOBAL OPPORTUNITY FUND
COMMON AND PREFERRED STOCKS Shares Value
Chemicals 1.12%
- - --------------------------------------------------------------------------------
E.I. DuPont de Nemours & Co. 500 $ 36,406
Commercial Services 0.13%
- - --------------------------------------------------------------------------------
Trans Zambesi Industries, Ltd. 30,000 4,386
Communications 3.93%
- - --------------------------------------------------------------------------------
Digital Telecom Philippines 300,000 13,001*
Jasmine International Public Co., Ltd. 25,000 13,422
PLD Telecom, Inc. 4,000 32,500*
SK Telecommunications Co., Ltd., ADR 60 446
Telefonica de Peru SA, ADR 2,000 44,250
Videsh Sanchar Nigam, Ltd., GDR 2,000 24,500*
---------------
128,119
Diversified Mining 7.81%
- - --------------------------------------------------------------------------------
Antofagasta Holdings plc 5,000 27,178
Cameco Corp. 1,000 33,000
Lonrho plc 5,000 36,042
Minorco SA, ADR 2,700 51,975
Normandy Mining, Ltd. 20,000 22,307
Phosphate Resource Partners, Ltd. 4,500 29,813
Teck Corp., Class B 2,300 33,619
Trillion Resources, Ltd. 20,000 20,981
---------------
254,915
Diversified Operations 4.26%
- - --------------------------------------------------------------------------------
Brierley Investment, Ltd. 120,000 69,326
First Pacific Co., Ltd. 14,000 6,733
Haw Par Corp., Ltd. 20,000 22,994
PT Bakrie & Brothers 80,000 3,250
Semi-Tech Corp., Class A 10,000 3,497*
South African Breweries, Ltd., ADR 1,000 33,250
---------------
139,050
- - -30-
<PAGE>
PORTFOLIO OF INVESTMENTS
ADRIAN DAY GLOBAL OPPORTUNITY FUND
COMMON AND PREFERRED STOCKS Shares Value
Electric Utilities 2.97%
- - --------------------------------------------------------------------------------
Enersis SA, ADR 1,500 $ 44,156
Entergy Corp. 1,000 24,875
Korea Electric Power Corp., ADR 3,000 27,938
---------------
96,969
Fertilizer 1.99%
- - --------------------------------------------------------------------------------
IMC Global, Inc. 1,800 64,800
Financial Services 3.69%
- - --------------------------------------------------------------------------------
Administradora de Fondos
de Pensiones Provida, ADR 1,000 17,875
Global Equity Corp. 20,000 39,165*
Guinness Peat Group plc 50,000 27,219
Guinness Peat Group plc Rights 5/05/98 5,000 1,028
London Pacific Group, Ltd., ADR 1,000 14,625
Man (ED&F) Group plc 5,000 20,488
---------------
120,400
Forestry 0.61%
- - --------------------------------------------------------------------------------
Fletcher Challenge Forests, ADR 3,000 20,062
Glass Containers 0.34%
- - --------------------------------------------------------------------------------
Thai Glass Industries 7,300 11,144
Gold Mining 12.43%
- - --------------------------------------------------------------------------------
Bema Gold Corp. 9,000 22,500*
Eldorado Gold Corp., Ltd. 17,000 14,267*
Euro-Nevada Mining Corp. 4,500 81,040
Franco Nevada Mining Corp., Ltd. 2,400 58,747
Freeport McMoran Copper & Gold 3,500 62,344
Freeport McMoran Copper & Gold,
Preferred Class C 1,500 33,563
Great Basin Gold, Ltd. 10,000 14,375*
Metallica Resources, Inc. 10,000 15,000*
Miramar Mining Corp. 6,500 10,258*
Newmont Mining Corp. 2,300 74,031
Pangea Goldfields, Inc. 15,000 19,408*
---------------
405,533
- - -31-
<PAGE>
PORTFOLIO OF INVESTMENTS
ADRIAN DAY GLOBAL OPPORTUNITY FUND
COMMON AND PREFERRED STOCKS Shares Value
Hotels 1.19%
- - --------------------------------------------------------------------------------
Mandarin Oriental International, Ltd. 30,000 $ 21,300
Shangri-La Asia, Ltd. 24,000 17,506
---------------
38,806
Insurance 2.36%
- - --------------------------------------------------------------------------------
Bangkok Insurance Public Co. 1,000 6,986
Jardine Lloyd Thompson Group 10,000 29,938
Loews Corp. 300 30,019
PT Asuransi Lippo Life 200,000 10,000*
---------------
76,943
Investment Companies 3.04%
- - --------------------------------------------------------------------------------
Allied Capital Corp. 1,000 26,000
India Fund, Inc. 3,000 24,750*
Korea Fund, Inc. 1,394 10,716*
Tea Plantation Investment Trust 23,571 36,860*
Tea Plantation Investment Trust Warrants 1,714 989*
---------------
99,315
Oil & Gas Extraction & Services 5.36%
- - --------------------------------------------------------------------------------
ENSCO International, Inc. 600 16,950
Gulf Canada Resources, Ltd. 4,000 21,250*
Pacalta Resources, Ltd. 2,500 17,834*
Petro-Canada 1,500 25,282
PT Medco Energi Corp. 120,000 43,500
Talisman Energy, Inc. 500 15,124*
YPF SA, ADR, Class D 1,000 34,875
---------------
174,815
Petroleum Refining 1.16%
- - --------------------------------------------------------------------------------
British Petroleum plc, ADR 400 37,800
Real Estate 1.13%
- - --------------------------------------------------------------------------------
IRSA, GDR 600 23,325
JG Summit Holdings, Inc., Series B 175,000 13,512
---------------
36,837
- - -32-
<PAGE>
PORTFOLIO OF INVESTMENTS
ADRIAN DAY GLOBAL OPPORTUNITY FUND
COMMON AND PREFERRED STOCKS Shares Value
Retail 1.87%
- - --------------------------------------------------------------------------------
Booker plc 8,000 $ 35,189
Singer Co. NV 1,500 14,531
Thakral Corp., Ltd. 25,000 11,125
---------------
60,845
Silver Mining 3.27%
- - --------------------------------------------------------------------------------
Freeport McMoran Copper & Gold,
Preferred Class D 2,000 40,000
Pan American Silver 5,000 50,000*
Silver Standard Resources, Inc. 5,000 16,785*
---------------
106,785
Textiles 0.37%
- - --------------------------------------------------------------------------------
Bombay Dyeing & Manufacturing
Co., Ltd., GDR 5,000 12,000
- - --------------------------------------------------------------------------------
Total Common and Preferred Stocks 2,309,530
- - --------------------------------------------------------------------------------
(cost $2,782,632)
Principal
REPURCHASE AGREEMENT 27.66% Amount
Joint Repurchase Agreement
Accounts, 4/30/98, due 5/1/98,
collateralized by U.S. Treasury
securities held in joint
repurchase accounts:
5.51%, Prudential Securities, Inc.,
repurchase price $89,013 $ 89,000 89,000
5.51%, J.P. Morgan Co.,
repurchase price $813,313 813,190 813,190
Total Repurchase Agreements 902,190
- - --------------------------------------------------------------------------------
(cost $902,190)
- - --------------------------------------------------------------------------------
Total Investments 98.45% 3,211,720
- - --------------------------------------------------------------------------------
(cost $3,684,822)
Other assets and liabilities, net 1.55% 50,576
---------------
NET ASSETS 100% $ 3,262,296
===========
ADR - American Depository Receipt GDR - Global Depository Receipt
RS - Restricted Security, See Note 1A * Non-income producing
See accompanying notes to financial statements.
- - -33-
<PAGE>
PORTFOLIO OF INVESTMENTS APRIL 30, 1998
GLOBAL PORTFOLIO SECURITIES BY COUNTRY
Percentage of
Country Value Total Investment
ADRIAN DAY GLOBAL OPPORTUNITY
- - --------------------------------------------------------------------------------
United States $ 616,788 19.21 %
Canada 244,503 7.61
Indonesia 192,656 6.00
Britain 138,040 4.30
Chile 105,210 3.28
Hong Kong 91,188 2.84
New Zealand 89,389 2.78
Argentina 82,594 2.57
Thailand 81,292 2.53
Australia 78,478 2.44
Sri Lanka 77,014 2.40
Switzerland 72,442 2.26
South Africa 69,292 2.16
India 61,250 1.91
Luxembourg 51,975 1.62
Philippines 51,731 1.61
Peru 50,000 1.56
Russia 49,285 1.53
Korea 39,100 1.21
Singapore 34,119 1.06
Netherlands 14,531 0.45
Mexico 14,267 0.44
Zimbabwe 4,386 0.14
United States - Repurchase Agreements 902,190 28.09
--------------- ---------------
TOTAL INVESTMENTS $ 3,211,720 100.00 %
=========== ======
REGENT EASTERN EUROPEAN
- - --------------------------------------------------------------------------------
Hungary $ 3,259,807 33.45 %
Russia 2,743,484 28.16
Poland 1,902,795 19.53
Slovenia 94,309 0.97
Ukraine 7,844 0.08
United States - Repurchase Agreements 1,735,429 17.81
--------------- ---------------
TOTAL INVESTMENTS $ 9,743,668 100.00 %
=========== ======
- - -34-
<PAGE>
PORTFOLIO OF INVESTMENTS APRIL 30, 1998
REGENT EASTERN EUROPEAN FUND
COMMON AND PREFERRED STOCKS 78.88% Shares Value
Automotive 0.98%
- - --------------------------------------------------------------------------------
KamAZ 25,000 $ 28,125*
North American Bus Industries Rt. 2,870 68,089
---------------
96,214
Chemicals 5.78%
- - --------------------------------------------------------------------------------
BorsodChem Rt., GDR 14,950 568,100
Commercial Banks 7.40%
- - --------------------------------------------------------------------------------
Bank Handlowy W. Warszawie 10,650 197,541
BIG Bank Gdanski, GDR 12,418 287,166
OTP Bank, Preferred Stock 3,503 114,771*
Powszechny Bank Kredytowy 974 32,691*
SKB Banka, GDR 6,225 94,309
---------------
726,478
Communications 10.28%
- - --------------------------------------------------------------------------------
Magyar Tavkozlesi Rt., ADR 6,148 181,366
Rostelekom 109,900 397,179*
Vimpel-Communications, ADR 7,980 430,920*
---------------
1,009,465
Computers & Data Processing 0.48%
- - --------------------------------------------------------------------------------
Softbank SA, GDR 3,861 46,718*
Conglomerates 1.62%
- - --------------------------------------------------------------------------------
Elektrim Spolka Akcyjna 11,115 158,715
Construction 4.39%
- - --------------------------------------------------------------------------------
Budimex SA 24,000 119,417*
Exbud SA, GDR 10,620 118,944*
Mostostal-Export 82,764 192,503
---------------
430,864
- - -35-
<PAGE>
PORTFOLIO OF INVESTMENTS
REGENT EASTERN EUROPEAN FUND
COMMON AND PREFERRED STOCKS Shares Value
Electric Services 10.84%
- - --------------------------------------------------------------------------------
Irkutskenergo 1,083,901 $ 220,031
Irkutskenergo, ADR 14,090 140,900
Nizhnovenergo 389 9,920
Unified Energy Systems 910,285 299,666
Unified Energy Systems, Preferred Stock 330,000 59,235*
Unified Energy Systems, GDR 9,932 335,205*
---------------
1,064,957
Glass & Glassware 0.23%
- - --------------------------------------------------------------------------------
Krosnienskie Huty Szkla Kros 2,706 22,228*
Investment Companies 5.60%
- - --------------------------------------------------------------------------------
Hungarian Investment Co., Ltd. 3,162 550,188*
Manufacturing 3.47%
- - --------------------------------------------------------------------------------
Graboplast Rt. 3,180 120,589
Graboplast Rt., GDR 33,890 220,285*
---------------
340,874
Metals Mining 5.52%
- - --------------------------------------------------------------------------------
Ashurst Technology, Ltd., Units 93,470 7,845*
KGHM Polska Miedz 51,998 237,294*
KGHM Polska Miedz, GDR 24,535 228,176*
Norilsk Nickel 12,000 69,000*
---------------
542,315
Oil & Gas Extraction 18.82%
- - --------------------------------------------------------------------------------
A.O. Tatneft, ADR 18,800 365,660
Lukoil Holding 5,120 84,736
Lukoil Holding, ADR 4,555 302,908
MOL Magyar Olaj-es Gazipari Rt. 11,000 334,226
MOL Magyar Olaj-es Gazipari Rt., GDR 24,872 761,083
---------------
1,848,613
- - -36-
<PAGE>
PORTFOLIO OF INVESTMENTS
REGENT EASTERN EUROPEAN FUND
COMMON AND PREFERRED STOCKS Shares Value
Pharmaceuticals 3.47%
- - --------------------------------------------------------------------------------
EGIS Pharmaceuticals, Ltd. 6,542 $ 341,109
- - --------------------------------------------------------------------------------
Total Common and Preferred Stocks 7,746,838
- - --------------------------------------------------------------------------------
(cost $7,658,570)
PRIVATIZATION CERTIFICATE 2.66% Certificates
Polish National Investment Fund
- - --------------------------------------------------------------------------------
(cost $326,606) 7,892 261,401*
Principal
REPURCHASE AGREEMENT 17.67% Amount
Joint Repurchase Agreement
Account, J.P. Morgan Co.,
4/30/98, 5.51%, due 5/1/98,
repurchase price $1,735,691,
collateralized by U.S.
Treasury securities held in a
joint repurchase account
(cost $1,735,429) $1,735,429 1,735,429
- - --------------------------------------------------------------------------------
Total Investments 99.21% 9,743,668
- - --------------------------------------------------------------------------------
(cost $9,720,604)
Other assets and liabilities,
net 0.79% 77,225
---------------
NET ASSETS 100% $ 9,820,893
=== ===========
ADR - American Depository Receipt
GDR - Global Depository Receipt
* Non-income producing
See accompanying notes to financial statements.
- - -37-
<PAGE>
STATEMENTS OF ASSETS AND LIABILITIES
BONNEL GROWTH
Investments at identified cost $ 91,880,584
============
ASSETS
- - --------------------------------------------------------------------------------
Investments, at value 108,936,043
Cash 308,726
Receivables:
Investments sold 4,460,697
Capital shares sold 143,229
Dividends 20,302
Interest 67
From manager and affiliates ---
Other assets 31,354
- - --------------------------------------------------------------------------------
Total Assets 113,900,418
- - --------------------------------------------------------------------------------
LIABILITIES
- - --------------------------------------------------------------------------------
Payables:
Investments purchased 3,915,045
Capital shares redeemed 66,984
Written options ---
To manager and affiliates 89,528
Accounts payable and accrued expenses 30,382
- - --------------------------------------------------------------------------------
Total Liabilities 4,101,939
- - --------------------------------------------------------------------------------
NET ASSETS $109,798,479
============
NET ASSETS CONSIST OF:
- - --------------------------------------------------------------------------------
Paid in capital 91,059,933
Undistributed net investment income (loss) (655,100)
Accumulated net realized gain (loss)
on investments and foreign currencies 2,338,187
Net unrealized appreciation (depreciation) of
investments and other assets and liabilities
denominated in foreign currencies 17,055,459
Net assets applicable to capital shares outstanding 109,798,479
===========
Capital shares outstanding, and unlimited number of
no par shares authorized 6,060,134
=========
Net Asset Value, per share $ 18.12
=======
(Continued on page 39)
- - -38-
<PAGE>
STATEMENTS OF ASSETS AND LIABILITIES APRIL 30, 1998
(continued from page 38)
MEGATRENDS ADRIAN DAY GLOBAL REGENT EASTERN
OPPORTUNITY EUROPEAN
$ 20,161,872 $ 3,684,822 $ 9,720,604
============ ============ ============
- - --------------------------------------------------------------------------------
26,431,327 3,211,720 9,743,668
90 19,716 158,346
2,546,140 954,907 1,598,036
36 --- 66,760
18,488 13,087 9,567
285 138 266
3,968 11,259 ---
7,364 4,017 4,010
- - --------------------------------------------------------------------------------
29,007,698 4,214,844 11,580,653
- - --------------------------------------------------------------------------------
- - --------------------------------------------------------------------------------
2,519,396 938,809 1,744,182
27,616 1,795 4,823
--- 11,944 ---
--- --- 2,601
49,774 --- 8,154
- - --------------------------------------------------------------------------------
2,596,786 952,548 1,759,760
- - --------------------------------------------------------------------------------
$ 26,410,912 $ 3,262,296 $ 9,820,893
============ =========== ===========
- - --------------------------------------------------------------------------------
18,780,684 3,755,604 9,778,799
(45,827) (15,445) (84,032)
1,406,600 953 103,077
6,269,455 (478,816) 23,049
--------------- --------------- ---------------
26,410,912 3,262,296 9,820,893
========== ========= =========
1,983,000 383,949 832,094
========= ======= =======
$ 13.32 $ 8.50 $ 11.80
======= ====== =======
See accompanying notes to financial statements.
- - -39-
<PAGE>
STATEMENT OF OPERATIONS
BONNEL GROWTH
NET INVESTMENT INCOME
Income:
- - --------------------------------------------------------------------------------
Dividends $ 229,601
Foreign taxes withheld on dividends ---
---------------
Net dividends 229,601
Interest and other 23,736
---------------
TOTAL INCOME 253,337
Expenses:
- - --------------------------------------------------------------------------------
Management fee 522,975
Transfer agent fees and expenses 98,284
Accounting service fees and expenses 36,200
Legal and professional fees 60,273
Distribution plan expenses 129,246
Custodian fees 6,541
Shareholder reporting 15,023
Registration fees 16,833
Trustee's fees and expenses 9,823
Miscellaneous 16,718
---------------
Total expenses before reductions 911,916
Short-term trading fee ---
Expenses offset (3,479)
Expenses reimbursed ---
---------------
NET EXPENSES 908,437
- - --------------------------------------------------------------------------------
Net Investment Income (Loss) (655,100)
========
- - --------------------------------------------------------------------------------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS
Realized gain (loss) from:
Securities 2,472,348
Foreign currency transactions ---
Net realized gain 2,472,348
=========
Net change in unrealized appreciation (depreciation) of:
Investments 10,862,229
Written options ---
Other assets and liabilities denominated in
foreign currencies ---
---------------
Net unrealized appreciation (depreciation) 10,862,229
- - --------------------------------------------------------------------------------
Net Realized and Unrealized Gain (Loss) on Investments 13,334,577
- - --------------------------------------------------------------------------------
Net Increase (Decrease) in Net assets
Resulting From Operations $ 12,679,477
============
(continued on page 41)
- - -40-
<PAGE>
STATEMENT OF OPERATIONS FOR THE SIX MONTHS ENDED APRIL 30, 1998
(continued from page 40)
MEGATRENDS ADRIAN DAY GLOBAL REGENT EASTERN
OPPORTUNITY EUROPEAN
$ 155,463 $ 26,563 $ 9,343
(168) (2,103) (661)
--------------- --------------- ---------------
155,295 24,460 8,682
68,410 33,446 61,623
--------------- --------------- ---------------
223,705 57,906 70,305
- - --------------------------------------------------------------------------------
124,991 22,976 65,412
25,340 7,645 13,625
18,643 20,817 27,487
25,883 15,774 19,297
31,248 3,839 11,138
4,170 6,043 6,821
3,982 5,347 6,902
24,073 5,907 16,647
5,290 3,934 4,206
6,488 830 6,866
-------------- --------------- ---------------
270,108 93,112 178,401
--- --- ---
(106) (136) (2,704)
--- (35,354) (30,985)
-------------- --------------- ---------------
270,002 57,622 144,712
- - --------------------------------------------------------------------------------
(46,297) 284 (74,407)
======= === =======
- - --------------------------------------------------------------------------------
1,420,578 22,986 114,174
--- (21,826) (10,718)
1,420,578 1,160 103,456
========= ===== =======
1,538,168 (131,280) 506,736
--- (5,729) ---
--- 24 (7,836)
-------------- --------------- ---------------
1,538,168 (136,985) 498,900
- - --------------------------------------------------------------------------------
2,958,746 (135,825) 602,356
- - --------------------------------------------------------------------------------
$ 2,912,449 $ (135,541) $ 527,949
=========== ========== ==========
See accompanying notes to financial statements.
- - -41-
<PAGE>
STATEMENTS OF CHANGES IN NET ASSETS
BONNEL GROWTH
Six Months Ended Month Ended Year Ended
INCREASE (DECREASE) April 30, 1998 October 31, 1997 Sept. 30, 1997
IN NET ASSETS
From investment
operations:
- - --------------------------------------------------------------------------------
Net investment
income (loss) $ (655,100) $ (136,075) $ (1,149,779)
Net realized gain
(loss) 2,472,348 5,716,293 17,376,123
Net unrealized
appreciation
(depreciation) 10,862,229 (17,312,394) 8,711,402
--------------- --------------- ---------------
Net increase
(decrease) in net
assets from investment
operations 12,679,477 (11,732,176) 24,937,746
Distributions to
shareholders:
- - --------------------------------------------------------------------------------
From net investment
income --- --- ---
In excess of net
investment income --- --- (896,933)
From net capital
gains (19,869,076) --- ---
--------------- --------------- ---------------
Total distributions
to shareholders (19,869,076) --- (896,933)
From capital share
transactions:
- - --------------------------------------------------------------------------------
Proceeds from shares
sold 22,426,730 5,595,992 66,851,063
Distributions re-
invested 19,029,963 --- 863,247
Paid-in capital
portion of short-term
trading fee 18,861 4,962 40,392
--------------- --------------- ---------------
41,475,554 5,600,954 67,754,702
Cost of shares redeemed (29,130,861) (7,116,832) (64,599,629)
--------------- --------------- ---------------
Net increase (decrease)
in net assets from
capital share
transactions 12,344,693 (1,515,878) 3,155,073
- - --------------------------------------------------------------------------------
NET INCREASE (DECREASE)
IN NET ASSETS 5,155,094 (13,248,054) 27,195,886
========= =========== ==========
- - --------------------------------------------------------------------------------
NET ASSETS
Beginning of period 104,643,385 117,891,439 90,695,553
- - --------------------------------------------------------------------------------
End of period $109,798,479 $104,643,385 $117,891,439
============ ============ ============
- - --------------------------------------------------------------------------------
Undistributed net
investment income,
end of period $ (655,100) $ --- $ ---
--------------- --------------- ---------------
Capital Share Activity
- - --------------------------------------------------------------------------------
Shares sold 1,323,226 265,753 3,724,404
Shares reinvested 1,148,488 --- 49,413
Shares redeemed (1,727,496) (342,582) (3,668,729)
--------------- --------------- ---------------
Net share activity 744,218 (76,829) 105,088
======= ======= =======
- - -42-
<PAGE>
MEGATRENDS
For the Six For the four Year Ended
INCREASE (DECREASE) Months ended Months ended June 30, 1997
IN NET ASSETS April 30, 1998 October 31, 1997
From Investment
Operations:
- - --------------------------------------------------------------------------------
Net investment
income (loss) $ (46,297) $ 20,134 $ 21,854
Net realized gain
(loss) 1,420,578 967,675 3,046,765
Net unrealized
appreciation
(depreciation) 1,538,168 (130,945) 1,777,070
--------------- --------------- ---------------
Net increase
(decrease) in net
assets from investment
operations 2,912,449 856,864 4,845,689
Distributions to
shareholders:
- - --------------------------------------------------------------------------------
From net investment
income (19,609) --- (21,909)
In excess of net
investment income --- --- (426,564)
From net capital
gains (3,583,127) --- ---
--------------- --------------- ---------------
Total distributions
to shareholders (3,602,736) --- (448,563)
From capital share
transactions:
- - --------------------------------------------------------------------------------
Proceeds from shares
sold 1,505,089 1,385,991 1,955,228
Distributions re-
invested 3,496,527 --- 437,124
Paid-in capital
portion of short-term
trading fee 1,924 1,730 2,420
--------------- --------------- ---------------
5,003,540 1,387,721 2,394,772
Cost of shares redeemed (3,394,342) (2,362,695) (9,127,072)
--------------- --------------- ---------------
Net increase (decrease)
in net assets from
capital share
transactions 1,609,198 (974,974) (6,732,300)
- - --------------------------------------------------------------------------------
NET INCREASE (DECREASE)
IN NET ASSETS 918,911 (118,110) (2,335,174)
======= ======== ==========
- - --------------------------------------------------------------------------------
NET ASSETS
Beginning of period 25,492,001 25,610,111 27,945,285
- - --------------------------------------------------------------------------------
End of period $ 26,410,912 $ 25,492,001 $ 25,610,111
============ ============ ============
- - --------------------------------------------------------------------------------
Undistributed net
investment income,
end of period $ (45,827) $ 20,079 $ (55)
Capital Share Activity
- - --------------------------------------------------------------------------------
Shares sold 116,917 96,569 157,711
Shares reinvested 294,817 --- 36,380
Shares redeemed (262,745) (166,350) (769,632)
--------------- --------------- ---------------
Net share activity 148,989 (69,781) (575,541)
======= ======= ========
See accompanying notes to financial statements.
- - -43-
<PAGE>
STATEMENTS OF CHANGES IN NET ASSETS
ADRIAN DAY GLOBAL OPPORTUNITY
Six Months Ended February 20, 1997 to
INCREASE (DECREASE) April 30, 1998 October 31, 1997
IN NET ASSETS
From investment
operations:
- - --------------------------------------------------------------------------------
Net investment
income (loss) $ 284 $ 31,527
Net realized gain
(loss) 1,160 2,851
Net unrealized
appreciation
(depreciation) (136,985) (341,831)
--------------- ---------------
Net increase
(decrease) in net
assets from investment
operations (135,541) (307,453)
Distributions to
shareholders:
- - --------------------------------------------------------------------------------
From net investment
income (50,314) ---
In excess of net
investment income --- ---
From net capital
gains --- ---
--------------- ---------------
Total distributions
to shareholders (50,314) ---
From capital share
transactions:
- - --------------------------------------------------------------------------------
Proceeds from shares
sold 545,400 4,505,667
Distributions re-
invested 50,271 ---
Paid-in capital
portion of short-term
trading fee 488 218
--------------- ---------------
596,159 4,505,885
Cost of shares redeemed (573,922) (772,518)
--------------- ---------------
Net increase (decrease)
in net assets from
capital share
transactions 22,237 3,733,367
- - --------------------------------------------------------------------------------
NET INCREASE (DECREASE)
IN NET ASSETS (163,618) 3,425,914
======== =========
- - --------------------------------------------------------------------------------
NET ASSETS
Beginning of period 3,425,914 ---
- - --------------------------------------------------------------------------------
End of period $ 3,262,296 $ 3,425,914
=========== ===========
- - --------------------------------------------------------------------------------
Undistributed net
investment income,
end of period $ (15,445) $ 34,585
--------------- ---------------
Capital Share Activity
- - --------------------------------------------------------------------------------
Shares sold 64,957 463,365
Shares reinvested 6,161 ---
Shares redeemed (69,570) (80,964)
--------------- ---------------
Net share activity 1,548 382,401
===== =======
- - -44-
<PAGE>
REGENT EASTERN EUROPEAN
Six Months Ended March 31, 1997 to
INCREASE (DECREASE) April 30, 1998 October 31, 1997
IN NET ASSETS
From investment
operations:
- - --------------------------------------------------------------------------------
Net investment
income (loss) $ (74,407) $ (11,759)
Net realized gain
(loss) 103,456 49,079
Net unrealized
appreciation
(depreciation) 498,900 (475,851)
--------------- ---------------
Net increase
(decrease) in net
assets from investment
operations 527,949 (438,531)
Distributions to
shareholders:
- - --------------------------------------------------------------------------------
From net investment
income (6,642) ---
In excess of net
investment income --- ---
From net capital
gains (40,682) ---
--------------- ---------------
Total distributions
to shareholders (47,324) ---
From capital share
transactions:
- - --------------------------------------------------------------------------------
Proceeds from shares
sold 3,090,297 10,634,504
Distributions re-
invested 47,324 ---
Paid-in capital
portion of short-term
trading fee 23,862 27,428
--------------- ---------------
3,161,483 10,661,932
Cost of shares redeemed (2,599,453) (1,445,163)
--------------- ---------------
Net increase (decrease)
in net assets from
capital share
transactions 562,030 9,216,769
- - --------------------------------------------------------------------------------
NET INCREASE (DECREASE)
IN NET ASSETS 1,042,655 8,778,238
========= =========
- - --------------------------------------------------------------------------------
NET ASSETS
Beginning of period 8,778,238 ---
- - --------------------------------------------------------------------------------
End of period $ 9,820,893 $ 8,778,238
=========== ===========
- - --------------------------------------------------------------------------------
Undistributed net
investment income,
end of period $ (84,032) $ (2,983)
--------------- ---------------
Capital Share Activity
- - --------------------------------------------------------------------------------
Shares sold 282,880 906,179
Shares reinvested 4,233 ---
Shares redeemed (239,313) (121,885)
--------------- ---------------
Net share activity 47,800 784,294
====== =======
See accompanying notes to financial statements.
- - -45-
<PAGE>
NOTES TO FINANCIAL STATEMENTS APRIL 30, 1998
NOTE 1: SIGNIFICANT ACCOUNTING POLICIES
U.S. Global Accolade Funds (the "Trust"), consisting of four separate funds (the
"Funds"), is organized as a Massachusetts business trust. Each Fund is a diver-
sified, open-end management investment company registered under the Investment
Company Act of 1940.
Bonnel Growth and MegaTrends changed their fiscal year ends from September 30
and June 30, respectively, to October 31. These changes were effected in 1997
resulting in a reporting period of one month for Bonnel Growth and four months
for MegaTrends, both ended October 31, 1997. Adrian Day Global Opportunity
("Adrian Day Global") commenced operations on February 20, 1997, and Regent
Eastern European commenced on March 31, 1997.
Effective November 18, 1996, MegaTrends was reorganized as a fund of the Trust.
The reorganization was a tax-free exchange, where shareholders received one
share of MegaTrends for each share of The Leeb Personal Finance Fund, the
predecessor fund.
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
The Funds value investments traded on national or international securities
exchanges or over-the-counter at the last sales price reported by the security's
primary exchange at the time of daily valuation. Securities for which no sale
was reported are valued at the mean between the last reported bid and ask
prices. 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.
The trustees determine fair value for securities when market quotations are not
available or the security is subject to legal restrictions on resale (restricted
security). The trustees valued the restricted security in Adrian Day Global on
April 30, 1998 at $10,407 representing 0.32% of net assets. This security was
acquired on July 2, 1997 at $1.84 per share when the unrestricted security price
was $2.99 per share. The issuer bears the cost of registration, if any, involved
in the disposition of the security.
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, for certain foreign securities,
when the information becomes available to the Funds. Interest income is recorded
on an accrual basis. Discounts and premiums on securities purchased are accreted
and amortized, respectively, on the same basis as used for federal tax
reporting.
- - -46-
<PAGE>
NOTES TO FINANCIAL STATEMENTS APRIL 30, 1998
The Funds may purchase securities on a when-issued or delayed-delivery basis and
segregate on their books liquid assets equal to the obligation until settlement.
The investment is accounted for in the same manner as marketable portfolio
securities.
C. REPURCHASE AGREEMENTS
The Funds may enter into repurchase agreements with recognized financial
institutions or registered broker-dealers and, in all instances, hold, as
collateral, underlying securities with a value exceeding the total repurchase
price, including accrued interest. The Funds use joint repurchase agreement
accounts with other Funds under common management where uninvested cash is
collectively invested in repurchase agreements, and each participating Fund owns
an undivided interest in the account.
D. FOREIGN CURRENCY TRANSACTIONS
Some Funds may invest in securities of foreign issuers. The accounting records
of these Funds are maintained in U.S. dollars. At each net asset value
determination date, the value of assets and liabilities denominated in foreign
currencies are 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. OPTIONS
Some Funds may write or purchase options on securities. The option premium is
the basis for recognition of unrealized or realized gain or loss on the option.
The cost of securities acquired or the proceeds from securities sold through the
exercise of the option is adjusted by the amount of the premium. For the six
months ended April 30, 1998, transactions in written options were as follows:
Number of Premiums
Contracts Received
Options outstanding at
beginning of year --- $ ---
Options written 55 10,767
Options terminated inclosing
purchase transactions (28) (4,552)
Options expired --- ---
--------------- ---------------
Options outstanding at
April 30, 1998 27 $ 6,215
- - -47-
<PAGE>
NOTES TO FINANCIAL STATEMENTS APRIL 30, 1998
F. INCOME TAXES
The Funds intend to comply with the requirements of the Internal Revenue Code
applicable to regulated investment companies and to distribute substantially all
of their taxable income to shareholders. Accordingly, no provision for federal
income taxes is required. Each Fund may be subject to foreign taxes on income
and gains on investments which are accrued based upon the Fund's understanding
of the tax rules and regulations in the foreign markets.
G. DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS
The Funds record dividends and distributions to shareholders on the ex-dividend
date. Distributions are determined in accordance with income tax regulations
which may differ from generally accepted accounting principles. Accordingly,
periodic reclassifications are made within the Funds' capital accounts to re-
flect income and gains available for distribution under income tax regulations.
The Funds make distributions at least annually.
H. EXPENSES
Each Fund bears expenses incurred specifically on its behalf plus an allocation
of its share of Trust level 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 cost; any excess is credited as paid-in capital. Expense
offset arrangements have been made with the Funds' custodian so the custodian
fees are paid indirectly by credits earned on the Funds' cash balances. Such
deposit arrangements are an alternative to overnight investments.
I. 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 and 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 agree-
ment with the Trust in effect through March 8, 1999, furnishes management and
investment advisory services and, subject to the supervision of the Trustees,
directs the investments of each Fund according to its investment objectives,
policies and limitations. The Manager also furnishes all necessary office faci-
lities, business equipment and personnel for administering the affairs of the
Trust. Frank E. Holmes, a trustee of the Funds, is the controlling owner of the
Manager. For each fund, the Manager has contracted with and compensates Sub-
Advisors to serve in the execution of the Manager's investment responsibilities
as follows:
- - -48-
<PAGE>
NOTES TO FINANCIAL STATEMENTS APRIL 30, 1998
Bonnel Growth Bonnel, Inc.
MegaTrends Money Growth Institute, Inc.
Adrian Day Global Global Strategic Management, Inc.
Regent Eastern European Regent Fund Management, Ltd.
For the services of the Manager, each Fund pays a management fee at an annual
rate of 1% for Bonnel Growth and MegaTrends and 1.25% for Adrian Day Global and
Regent Eastern European based on their average net assets. Fees are accrued
daily and paid monthly.
From November 1, 1997 to January 31, 1998, the Manager agreed to limit the
annual expenses of Adrian Day Global to 2.50% of its average net assets and of
Regent Eastern European to 3.25% of its average net assets.
United Shareholder Services, Inc. ("USSI"), a wholly-owned subsidiary of the
Manager, is transfer agent and accounting service agent for the Funds. Each Fund
pays an annual fee based on the number of shareholder accounts for transfer
agency services. Certain account fees are paid directly by shareholders to the
transfer agent, which, in turn, reduces its charge to the Funds. For maintaining
the books and records of the Funds and calculating the daily net asset values,
USSI is paid a fee based on Fund net assets subject to a minimum fee.
Additionally, the Manager is reimbursed at cost for in-house legal services
pertaining to each Fund. Effective November 1, 1997, the Funds changed to Brown
Brothers Harriman & Co. as the new custodian, fund accounting and administration
service agent with a fee structure based on average net assets.
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 .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. MegaTrends adopted the plan on November 18, 1996.
Brimberg & Co., L.P., a broker-dealer affiliate of Money Growth Institute, Inc.,
received $4,910, representing 42% of commissions paid by MegaTrends on purchases
and sales of securities during the six months ended April 30, 1998.
During the six months ended April 30, 1998, A & B Mailers, Inc., a wholly-owned
subsidiary of the Manager, was paid $6,833 for mailing services provided to the
Funds.
The two independent trustees each receive $8,000 annually as compensation for
serving on the board, plus $2,000 per each meeting attended. The fees are
allocated among the four Funds.
- - -49-
<PAGE>
NOTES TO FINANCIAL STATEMENTS APRIL 30, 1998
At April 30, 1998, individual shareholders holding more than 5% of outstanding
shares comprised 23.2% of Adrian Day Global (including 10.8% held by the Fund's
Sub-Advisor).
The former administrative services agent, shareholder servicing and transfer
agent and the accounting services agent for MegaTrends were affiliates of the
former manager. Fees for administrative services, which terminated with the
change in Manager. Fees for administrative services, which terminated with the
change in Manager, were based on the Fund's average net assets. For the period
from July 1 through November 17, 1996, the former manager reimbursed the Fund
$20,988 for fees and expenses.
NOTE 3: INVESTMENTS
Purchases and sales of long-term securities for the six months ended April 30,
1998 are summarized as follows:
FUND PURCHASES SALES
- - --------------------------------------------------------------------------------
Bonnel Growth $101,825,122 $108,669,162
MegaTrends 3,672,983 5,080,042
Adrian Day Global 1,350,610 786,646
Regent Eastern European 3,302,789 2,356,969
The following table presents the income tax basis of securities owned at April
30, 1998, and the tax basis components of net unrealized appreciation or
depreciation:
FUND AGGREGATE GROSS GROSS NET UNREALIZED
COST UNREALIZED UNREALIZED APPRECIATION
APPRECIATION DEPRECIATION (DEPRECIATION)
- - --------------------------------------------------------------------------------
Bonnel Growth $91,880,609 $18,729,701 $1,674,267 $17,055,434
MegaTrends 20,161,872 7,198,508 929,053 6,269,455
Adrian Day Global 3,690,551 118,442 597,273 (478,831)
Regent Eastern European 9,720,604 1,090,455 1,067,391 23,064
Regent Eastern European may be exposed to risk not typically associated with
investment in the United States due to its concentration of investments in
emerging markets. These risks include disruptive political or economic con-
ditions and the possible imposition of adverse governmental laws or currency ex-
change restrictions.
- - -50-
<PAGE>
FINANCIAL HIGHLIGHTS
BONNEL GROWTH
For a capital share outstanding during the:
Six Months ended Period Ended Year Ended
April 30, October 31, September 30,
-------------------------
1998 1997* 1997 1996 1995**
Net asset value,
beginning of period $ 19.68 $ 21.86 $ 17.15 $ 14.81 $ 10.02
- - --------------------------------------------------------------------------------
Investment Activities
Net investment income
(loss) (.11) (.03) (.21) (.14) (.07)
Net realized and
unrealized gain (loss) 2.26 (2.15) 5.09 3.13 4.91
-------- -------- ------ ------ ------
Total from investment
activities 2.15 (2.18) 4.88 2.99 4.84
-------- -------- ------ ------ ------
Distributions
In excess of net
investment income --- --- --- --- (.05)
From net realized
gains (3.71) --- (.17) --- ---
In excess of net
realized gains --- --- --- (.65) ---
-------- -------- ------ ------ ------
Total distribution (3.71) --- (.17) (.65) (.05)
- - --------------------------------------------------------------------------------
Net asset value,
end of period $ 18.12 $19.68 $ 21.86 $ 17.15 $ 14.81
- - --------------------------------------------------------------------------------
Total Return
(excluding account fees) 12.89 % (9.97)% 28.67 % 21.27 % 48.74 %
Ratios to Average Net
Assets (a):
Net investment
income (loss) (1.25)% (1.43)% (1.18)% (1.32)% (1.46)%
Total expenses 1.74 % 1.72 % 1.77 % 1.83 % 2.50 %
Expenses reimbursed
or offset --- --- --- --- (.02)%
Net expenses 1.74 % 1.72 % 1.77 % 1.83 % 2.48 %
Average commission rate
paid 0.0688 0.0685 0.0685 0.0708 n/a
Portfolio turnover rate 97 % 52 % 239 % 212 % 145 %
Net assets, end of
period (in thousands) $109,798 $104,643 $117,891 $90,696 $24,673
* Change in fiscal year end.
** From October 17, 1994, 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. These amounts would decrease the net investment income
ratio had such reductions not occurred.
See accompanying notes to financial statements.
- - -51-
<PAGE>
FINANCIAL HIGHLIGHTS
MEGATRENDS
For a capital share outstanding during the:
Six Months ended Period Ended Year Ended
April 30, October 31, September 30,
-------------------------
1998 1997* 1997** 1996 1995
Net asset value,
beginning of period $ 13.90 $ 13.45 $ 11.27 $ 11.17 $ 10.29
- - --------------------------------------------------------------------------------
Investment Activities
Net investment income
(loss) (.03) .01 .01 .17 .28
Net realized and
unrealized gain (loss) 1.47 .44 2.39 1.72 .95
Total from investment
activities 1.44 .45 2.40 1.89 1.23
Distributions
From net
investment income (.01) --- (.01) (.17) (.28)
From net realized gains (2.01) --- (.21) (1.61) ---
In excess of net
realized gains --- --- --- (.01) (.07)
------ ------ ------ ------ ------
Total distribution (2.02) --- (.22) (1.79) (.35)
- - --------------------------------------------------------------------------------
Net asset value,
end of period $ 13.32 $ 13.90 $ 13.45 $ 11.27 $ 11.17
- - --------------------------------------------------------------------------------
Total Return
(excluding account fees) 12.16 % 3.34 % 20.72 % 17.10 % 12.20 %
Ratios to Average Net
Assets (a):
Net investment income
(loss) (.37)% .23 % .09 % 1.30 % 2.36 %
Total expenses 2.16 % 1.76 % 1.97 % 2.10 % 1.98 %
Expenses reimbursed
or offset --- --- (.09)% (.60)% (.48)%
Net expenses 2.16 % 1.76 % 1.88 % 1.50 % 1.50 %
Average commission rate
paid $0.0597 $0.0777 $0.0800 n/a n/a
Portfolio turnover rate 31 % 13 % 62 % 115 % 163 %
Net assets, end of
period (in thousands) $26,411 $25,492 $25,160 $27,945 $32,976
* Change in fiscal year end.
** Effective November 18, 1996, the Fund changed to a new investment manager.
- - -52-
<PAGE>
FINANCIAL HIGHLIGHTS
MEGATRENDS
Year Ended
June 30,
-------------------
1994 1993
Net asset value,
beginning of period $10.84 $10.36
- - --------------------------------------------------------------------------------
Investment Activities
Net investment income
(loss) .19 .15
Net realized and
unrealized gain (loss) (.35) .55
Total from investment
activities
Distributions (.16) .70
From net
investment income (.19) (.15)
From net realized gains (.20) (.07)
In excess of net
realized gains --- ---
------ ------
Total distribution (.39) (.22)
- - --------------------------------------------------------------------------------
Net asset value,
end of period $10.29 $10.84
- - --------------------------------------------------------------------------------
Total Return
(excluding account fees) (1.50)% 6.79 %
Ratios to Average Net
Assets (a):
Net investment income
(loss) 1.65 % 1.60 %
Total expenses 1.81 % 1.95 %
Expenses reimbursed
or offset (.31)% (.45)%
Net expenses 1.50 % 1.50 %
Average commission rate
paid n/a n/a
Portfolio turnover rate 143 % 83 %
Net assets, end of
period (in thousands) $45,523 $58,955
(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. These amounts would decrease the net investment income
ratio had such reductions not occurred.
See accompanying notes to financial statements.
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<PAGE>
FINANCIAL HIGHLIGHTS
ADRIAN DAY GLOBAL OPPORTUNITY
For a capital share outstanding during the:
Six Months ended Year Ended
April 30, October 31,
1998 1997*
Net asset value,
beginning of period $ 8.96 $ 10.00
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Investment Activities
Net investment
income (loss) .01 .08
Net realized and
unrealized gain (loss) (.33) (1.12)
Total from investment
activities (.32) (1.04)
Distributions
From net investment
income (.14) ---
From net realized gains --- ---
-------- --------
Total distribution (.14) ---
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Net asset value,
end of period $ 8.50 $ 8.96
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Total Return
(excluding account fees) (3.54)% (10.40)%
Ratios to Average Net
Assets (a):
Net investment loss .02 % 1.71 %
Total expenses 5.99 % 5.63 %
Expenses reimbursed
or offset (2.28)% (3.13)%
Net expenses 3.71 % 2.50 %
Average commission rate
paid $0.0066 $0.0119
Portfolio turnover rate 81 % 13 %
Net assets, end of
period (in thousands) $ 3,262 $ 3,426
(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. These amounts would decrease the net investment income
ratio had such reductions not occurred.
* From February 20, 1997, commencement of operations.
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<PAGE>
FINANCIAL HIGHLIGHTS
REGENT EASTERN EUROPEAN
For a capital share outstanding during the:
Six Months ended Year Ended
April 30, October 31,
1998 1997*
Net asset value,
beginning of period $ 11.19 $ 10.00
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Investment Activities
Net investment
income (loss) (.09) (.01)
Net realized and
unrealized gain (loss) .76 1.20
Total from investment
activities .67 1.19
Distributions
From net investment
income (.01) ---
From net realized gains (.05) ---
-------- --------
Total distribution (.06) ---
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Net asset value,
end of period $ 11.80 $ 11.19
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Total Return
(excluding account fees) 5.99 % 11.90 %
Ratios to Average Net
Assets (a):
Net investment loss (1.69)% (.49)%
Total expenses 3.93 % 4.98 %
Expenses reimbursed
or offset (.68)% (1.73)%
Net expenses 3.25 % 3.25 %
Average commission rate
paid $ 0.0513 $ 0.0804
Portfolio turnover rate 69 % 11 %
Net assets, end of
period (in thousands) $ 9,821 $ 8,778
(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. These amounts would decrease the net investment income
ratio had such reductions not occurred.
** From March 31, 1997, commencement of operations.
See accompanying notes to financial statements.
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<PAGE>
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<PAGE>
- - --Back Cover--
(Graphic: U.S. Global Investors Logo)
U.S. Global Investors
P.O. Box 781234
San Antonio, Texas 78278-1234
1-800-US-FUNDS
