[FRONT OF POSTCARD]
MEGATRENDS FUND [Graphic: USGI Logo]
a U.S. Global Investors Fund
MEGATREND GROWTH
About the Portfolio Manager
- --------------------------------------------------------------------------------
Dr. Leeb holds a B.S. in Economics from the Wharton School of Business, and a
Ph.D. in Psychology and an M.A. in Mathematics from the University of Illinois.
He is the editor of Personal Finance, an esteemed investment newsletter, and The
Big Picture, one of the nation's top market-timing newsletters. Author of
Getting In On the Ground Floor and Market Timing For the Nineties, Dr. Leeb has
made appearances on Wall Street Week, The Nightly Business Report, CNN and CNBC.
Investment Profile
- --------------------------------------------------------------------------------
The MegaTrends Fund invests in stocks, bonds and money market instruments in a
combination designed to provide the optimal balance of growth and protection for
shareholders. The MegaTrends Fund primarily holds equity investments but
increases its weighting in bonds and money market securities when Dr. Leeb
believes they offer better performance and a higher level of safety than stocks.
Through analysis of global, economic and market data, Dr. Leeb identifies
universal trends which he predicts will drive securities and economies
throughout the world, and adjusts the Fund's portfolio accordingly.
SECTORS %
- --------------------------------------------------------------------------------
Real Estate 11.08%
Offices-Holding Companies 9.40%
Business Services 5.82%
Fire, Marine Insurance 4.83%
Drilling Oil and Gas 4.46%
Radio & TV Broadcast 3.45%
Gold Ores 3.35%
Misc. Furniture 3.25%
Prepackaged Software 3.04%
Oil & Gas Field Machines 2.95%
FUND PROFILE
For Portfolio
Management
Commentary
call our portfolio
direct hotline at
1-800-873-8637
option 6
<PAGE>
[BACK OF POSTCARD]
EQUITY PORTFOLIO HIGHLIGHTS (QUARTER ENDED JUNE 30, 1998)
[Graphic: Save with a FREE
Lifetime IRA icon]
TOTAL RETURNS
Year To Date 7.92%
1 Year (annualized) 11.22%
5 Year (annualized) 11.87%
Total Assets: $24.982 million
Expense Ratio: as of Dec. 31, 1997 2.16%
CUSIP: 90330L204
Ticker Symbol: MEGAX
Inception Date: 10/21/91
TOP TEN HOLDINGS
- --------------------------------------------------------------------------------
Berkshire Hathaway, Inc. 8.23%
Sotheby's Holdings Class A 5.10%
Crescent Real Estate 4.13%
New Plan Realty 3.09%
Sony Corporation 3.02%
Royal Group Technologies, Inc. 2.85%
Microsoft Corporation 2.66%
Chevron Corporation 2.62%
Schlumberger Limited 2.59%
Fannie Mae 10/9/19 2.55%
Must be accompanied or preceded by a prospectus. Past performance is no
guarantee of future results. Please read the prospectus carefully before
investing. Investment returns and principal value will vary, and you may have a
gain or loss when you sell shares. Call 1-800-US-FUNDS to receive additional
information. The Fund's portfolio will change. There can be no guarantee that
the Fund will continue to hold these securities in the future.
