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BONNEL GROWTH FUND [Graphic: USGI Logo]
a U.S. Global Investors Fund
MID-CAP GROWTH
About the Portfolio Manager
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Art Bonnel has been managing money since 1970. He managed the MIM stock
appreciation fund from 1985 to 1994 and has been fund manager of the Bonnel
Growth Fund since its inception, October 17, 1994. Mr. Bonnel has served on the
Board of Directors of the Kansas City Board of Trade, held a seat on the Kansas
City Exchange, served as a bank trust officer and manages his own investment
advisory firm, Bonnel, Inc.
Investment Profile
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The Fund seeks long-term gains by investing primarily in mid-size growth
companies with market capitalizations of around $1 billion. The main factor that
drives the Bonnel stock selection process is the search for quality growth
companies. His strategy focuses on companies with strong earnings, a strong
balance sheet, a competitive edge within its market niche, and significant
management ownership.
SECTORS %
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Prepackaged Software 10.6%
Pharmaceutical 9.01%
CMP Integrated Systems 6.72%
Computer Peripheral 6.23%
Family Clothing Store 3.99%
Biological PDS 3.78%
Security Brokers 3.57%
Surgical, Medical Instrument 3.53%
Photographic Equipment 3.36%
Fabricated Rubber 3.04%
FUND PROFILE
For Portfolio
Management
Commentary
call our portfolio
direct hotline at
1-800-873-8637
option 6
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EQUITY PORTFOLIO HIGHLIGHTS (QUARTER ENDED JUNE 30, 1998)
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TOTAL RETURNS
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Year To Date 15.54%
1 Year (annualized) 22.20%
Since Inception (annualized) 26.58%
Total Assets: $108.104 million
Expense Ratio: as of April 30, 1998 1.74%
Turnover Rate: as of April 30, 1998 97%
CUSIP: 90330L105
Ticker Symbol: ACBGX
Inception Date: 10/17/94
TOP TEN HOLDINGS
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Cisco Systems, Inc. 4.17%
Gap, Inc. 3.91%
Legato Systems Inc. 3.53%
Biogen Inc. 3.11%
Safeskin Corporation 2.98%
Warner Lambert 2.83%
Xerox 2.76%
Shering Plough 2.49%
Unisys Corp. 2.30%
Keane 2.28%
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.
