[GRAPHIC: U.S. GLOBAL LOGO]
[GRAPHIC: 10 SMALL PHOTOS OF SCENES FROM AROUND
THE WORLD SCATTERED AROUND THE PAGE]
U.S. GLOBAL ACCOLADE FUNDS
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SEMI-ANNUAL REPORT
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(UNAUDITED)
APRIL 30, 1999
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TABLE OF CONTENTS
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Letter to Shareholders ........................................ 1
Management Team's Perspective ................................. 6
Portfolios of Investments ..................................... 21
Statements of Assets and Liabilities .......................... 36
Statements of Operations ...................................... 38
Statements of Changes in Net Assets ........................... 40
Notes to Financial Statements ................................. 43
Financial Highlights .......................................... 49
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[GRAPHIC: US GLOBAL LOGO]
P.O. Box 781234
San Antonio, Texas 78278-1234
Tel 1*800*US*FUNDS
Fax 210*308*1217
www.us-global.com
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U.S. GLOBAL ACCOLADE FUNDS
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Dear Shareholder:
Globalization, which at one time was only a [GRAPHIC: PHOTO OF
theory, is now a reality. Companies throughout the FRANK E. HOLMES]
world are seeking new opportunities to make a
profit and grow their businesses. Technology is
changing entire industries. The investment arena
now has over 10,000 mutual funds. Global capital
markets, which had been rocked by turbulence
nearly a year ago, are beginning to return, albeit
slowly.
The stock market itself has an orientation that changes. At different times,
certain sectors outperform others. For example, there is a growth cycle and
there is a value cycle. There is a big-cap stock cycle, which we are presently
experiencing, and there is a small-cap stock cycle, which has been searching for
a bottom. There are many different commodity price cycles. Taking this even
further, there are growth stock analysts for small-cap funds. This applies to
mid-cap stocks and large-cap stocks as well. Therefore, diversification and
asset allocation are critical success factors for all long-term investors.
Regardless of the recent market climate, the future includes the distinct
possibility of uncertainty and volatility. While we do not control interest
rates, gold price movements, government actions, currencies, etc., we can
control the investment process by implementing, and adhering to, a disciplined
and structured investment strategy. Our job is to successfully navigate through
volatile markets and deliver consistent superior fund performance to our
shareholders with the goal of beating our average peer group as measured by
various indexes.
We believe an understanding of investment objectives, limitations and risks is
fundamental to comparing the investments of our different funds. As you are
aware, different funds have different investment objectives and limitations.
Each fund manager has his own unique investment style and strategy. Some
analysts are growth oriented and others are value oriented. All these
differences create different styles and results. What is critical to U.S. Global
is that each fund consistently rank in the top half of its peer group.
Asset allocation will help you successfully navigate these changing cycles.
Research studies indicate that over 90% of the returns of a successful portfolio
are a function of selecting the right asset allocation--dividing your portfolio
among the major asset classes: stocks, bonds, cash and other investments. That
means that less than 10% depends on your ability to pick the right funds. To
maintain your portfolio for maximum returns, we suggest you diversify through
asset allocation in accordance with your
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investment expectations and avoid overweighting in highly volatile sectors. For
a well-diversified portfolio, we suggest investing up to 30% of your equity fund
investments in a growth fund, such as the Bonnel Growth Fund.
While large-cap stocks continued to drive the market, the Bonnel Growth Fund,
which has outperformed the Russell 2000 Index since its inception in 1994,
focused on stocks with high growth potential. The fund also outperformed the S&P
500 Index for the first quarter of 1999. Currently, the fund seeks investment
opportunities in the technology, healthcare and retail sectors.
The MegaTrends Fund's focus continues to be on long-term growth, and to a large
extent, the performance of the fund has mirrored worldwide growth. The fund is
heavily invested in REITs and energy, two sectors we expect to show sustained
and long-term growth going forward. Its largest holding continues to be
Berkshire Hathaway, the holding company headed by Warren Buffett, who is widely
considered to be this country's leading investment authority. In fact, if an
investor had given Buffett $10,000 to manage in 1956 and had reinvested all the
profits, by the end of 1994, that person would hold stock worth $80 million.
Berkshire Hathaway, which recently acquired giant reinsurer General Re,
represents approximately 18% of the fund's net assets.
As I have mentioned in previous reports, our mission is to maximize the growth,
protection and service of our shareholders' wealth with the highest ethical
standards. Consequently, the effect of our business decisions on our
shareholders must drive our planning and decision-making process. It is with
regret that I inform you that, upon our recommendation, the board of trustees
for the U.S. Global Accolade Funds has approved the termination of the Global
Blue Chip Fund, subject to shareholder approval. Since the fund's inception in
1997, it has failed to attract assets and has, therefore, become expensive to
manage. We believe that this decision is in the best interest of our
shareholders and that our family of funds provides them with excellent
alternatives for their investments.
Although the Central and Eastern European stock markets showed signs of recovery
in the early part of the first quarter, the Kosovo crisis has now negatively
impacted those markets. The performance of the Regent Eastern European Fund
continued to be affected by Russia's meltdown and, as a result of the Kosovo
crisis, negative sentiment toward the fund's favored markets in Hungary and
Poland. Management continues to be optimistic regarding potential opportunities
in this region and will continue to focus on markets in the Czech Republic,
Poland and Hungary.<F1>
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We continue to urge a cautious approach toward emerging markets, as well as in
the gold and natural resources sectors, with single-digit weightings here. A
good basis for a well-diversified portfolio is usually no more than 5% in gold
and between 5% and 10% in emerging markets and global resources.
FOUR CRITICAL SUCCESS FACTORS FOR YOUR PORTFOLIO
USE ASSET ALLOCATION
The key to every successful portfolio--conservative or aggressive, large or
small, GenXer, baby boomer or retiree--is asset allocation. Research studies
have shown that over 90% of the returns of a successful portfolio are a function
of selecting the right asset allocation, not on individual fund selections. For
help in selecting an asset mix that meets your personal financial goals, you can
complete our new online asset allocation worksheet (www.us-global.com). This
worksheet can help you plan for retirement, education expenses and other
financial goals. If you become bearish about the stock market, it will reset
your allocation towards bonds and cash. As you age, it will adjust your
allocation mix.
MAX OUT YOUR 401(K) CONTRIBUTIONS
If you are nearing retirement, you should know that today's retirees must
realistically plan to live on their retirement savings for 20 to 30 years. What
does that mean for you? First, if you are working, you should max out your
401(k) or any other employer-sponsored retirement plan. Take advantage of every
dollar your employer matches and every tax advantage offered.
MAX OUT YOUR IRA SAVINGS
Second, max out your IRAs. Take advantage of the tax benefits offered by
traditional, Roth, spousal and educational IRAs. According to Charles Schwab,
"For every five years you put off investing, you may need to double your monthly
investing amount to achieve the same retirement income." For a quick analysis of
how much you need to save to reach your retirement goals, check out our new,
online retirement planning worksheets. The worksheets are designed to answer
questions such as: "How much should I save to comfortably retire?" and "Will I
be able to retire early?"
MAX OUT YOUR SAVINGS
Third, max out your savings. Did you know that for the price of a cup of coffee
and a muffin each morning, you could build a substantial nest egg? That's about
$4.00 a day. As the following chart shows, you could become a millionaire in 30
years by investing just $500 a month. The rule of thumb here is to invest often
and regularly, without regard to short-term market fluctuations. Keep in mind
that the markets are unpredictable, so don't try
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to outguess them. For added discipline and easier investing, sign up for our ABC
Investment Plan(R), our personalized investing service designed to fit your
needs, budget, goals and schedule. When you use the ABC Investment Plan(R),
you'll be using a dollar-cost averaging strategy, an investment technique that
lets you invest a fixed amount in a specific investment at regular intervals.
Please keep in mind that no investment program can assure a profit or protect
against depreciation in a declining market.
MONTHLY
CONTRIBUTION 5 YEARS 10 YEARS 20 YEARS 30 YEARS
------ ------- -------- -------- ----------
$ 30 $ 2,323 $ 6,145 $ 22,781 $ 67,815
$ 50 $ 3,872 $ 10,242 $ 37,968 $ 113,024
$ 100 $ 7,744 $ 20,484 $ 75,937 $ 226,049
$ 250 $19,359 $ 51,211 $189,842 $ 565,122
$ 500 $38,719 $102,422 $379,684 $1,130,244
$1,000 $77,437 $204,845 $759,369 $2,260,488
THIS HYPOTHETICAL EXAMPLE ASSUMES A 10% ANNUAL RETURN COMPOUNDED
MONTHLY. YOUR ACTUAL RETURN MAY BE MORE OR LESS THAN THIS AMOUNT.
With market fluctuations being the norm rather than the exception, we encourage
you to stay the course and focus on your long-term investment goals. As always,
our investor representatives are happy to answer any questions you may have
about your accounts. Because we understand that you may also want easy access to
your account information 24 hours a day, seven days a week, we now offer
shareholders confidential, online account information on our website at
www.us-global.com. Of course, you can always access your account by calling
1-800-US-FUNDS and choosing option 2.
We appreciate the confidence you have placed in us and look forward to helping
you reach your financial and retirement goals.
Sincerely,
/s/ Frank Holmes
Frank Holmes
Chairman & CEO
P.S. Don't forget U.S. Global's family of funds offers 15 no-load mutual funds,
covering everything from investing in China to blue chip stocks. We have two
money market funds, the U.S. Treasury Securities Cash Fund and the U.S.
Government Securities Savings Fund, which offer free checking and competitive
yields.<F2> Call us or visit our website today!
For more complete information on any of our funds, including charges and
expenses, please call 1-800-US-FUNDS or visit our website at www.us-
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U.S. GLOBAL ACCOLADE FUNDS
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global.com for a free prospectus. Please read the prospectus carefully before
you invest or send money. Investment returns and principal will fluctuate so
that you may have a gain or loss when you sell shares. Past performance does not
guarantee future results.
<F1>Foreign and emerging market investing involves special risks such as
currency fluctuation, less public disclosure, as well as economic and
political risks.
<F2>Like all money market funds, an investment in the funds is not insured or
guaranteed by the Federal Deposit Insurance Corporation or any other
government agency. Although the money market funds seek to preserve the
value of your investment at $1.00 per share, it is possible to lose money by
investing in the funds.
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BONNEL GROWTH FUND
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MANAGEMENT TEAM'S PERSPECTIVE
INTRODUCTION
The fund can invest in companies of all sizes; however, it currently focuses on
mid-cap growth issues in three major sectors: healthcare, technology and
retailing. Recently, more growth has been found in these industries than most
others. Our primary objective is long-term capital appreciation.
PERFORMANCE
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BONNEL GROWTH FUND
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[GRAPHIC: Linear graph plotted from data in table below.]
BONNEL GROWTH FUND S&P 500 INDEX RUSSELL 2000 INDEX
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DATE BEGIN/ CUMULATIVE DATE BEGIN/ CUMULATIVE DATE BEGIN/ CUMULATIVE
END RETURN END RETURN END RETURN
- ---------- ---------- ---------- ---------- ---------- ----------
10/14/1994 $10,000.00 $10,000.00 10/14/1994 $10,000.00
10/31/1994 $10,010.00 10/31/1994 $10,000.00 10/31/1994 $10,007.21
11/30/1994 $10,030.00 11/30/1994 $9,636.27 11/30/1994 $9,603.05
12/30/1994 $10,090.00 12/30/1994 $9,779.02 12/30/1994 $9,861.06
01/31/1995 $9,859.31 01/31/1995 $10,032.44 01/31/1995 $9,736.64
02/28/1995 $10,491.19 02/28/1995 $10,423.04 02/28/1995 $10,141.67
03/31/1995 $10,942.53 03/31/1995 $10,730.11 03/31/1995 $10,316.34
04/28/1995 $11,423.97 04/28/1995 $11,045.84 04/28/1995 $10,545.72
05/31/1995 $11,594.47 05/31/1995 $11,486.65 05/31/1995 $10,727.05
06/30/1995 $12,677.69 06/30/1995 $11,752.99 06/30/1995 $11,283.53
07/31/1995 $14,121.99 07/31/1995 $12,142.57 07/31/1995 $11,933.52
08/31/1995 $14,252.38 08/31/1995 $12,172.88 08/31/1995 $12,180.39
09/29/1995 $14,874.22 09/29/1995 $12,686.31 09/29/1995 $12,397.87
10/31/1995 $14,523.18 10/31/1995 $12,640.98 10/31/1995 $11,843.40
11/30/1995 $14,804.02 11/30/1995 $13,195.27 11/30/1995 $12,340.96
12/29/1995 $14,653.02 12/29/1995 $13,449.45 12/29/1995 $12,666.61
01/31/1996 $14,442.94 01/31/1996 $13,906.67 01/31/1996 $12,653.03
02/29/1996 $15,031.16 02/29/1996 $14,036.05 02/29/1996 $13,047.36
03/29/1996 $15,734.93 03/29/1996 $14,171.18 03/29/1996 $13,312.95
04/30/1996 $17,604.63 04/30/1996 $14,379.92 04/30/1996 $14,024.77
05/31/1996 $19,085.69 05/31/1996 $14,750.14 05/31/1996 $14,577.50
06/28/1996 $17,552.11 06/28/1996 $14,806.38 06/28/1996 $13,978.90
07/31/1996 $15,734.93 07/31/1996 $14,152.59 07/31/1996 $12,757.90
08/30/1996 $16,564.74 08/30/1996 $14,451.57 08/30/1996 $13,498.66
09/30/1996 $18,014.29 09/30/1996 $15,264.21 09/30/1996 $14,026.19
10/31/1996 $17,909.25 10/31/1996 $15,685.05 10/31/1996 $13,810.02
11/29/1996 $18,746.40 11/29/1996 $16,869.60 11/29/1996 $14,379.03
12/31/1996 $18,746.40 12/31/1996 $16,535.43 12/31/1996 $14,755.87
01/31/1997 $18,884.24 01/31/1997 $17,567.93 01/31/1997 $15,050.77
02/28/1997 $17,219.54 02/28/1997 $17,705.85 02/28/1997 $14,685.83
03/31/1997 $16,318.27 03/31/1997 $16,979.70 03/31/1997 $13,992.88
04/30/1997 $16,593.95 04/30/1997 $17,992.47 04/30/1997 $14,031.87
05/30/1997 $18,385.89 05/30/1997 $19,087.10 05/30/1997 $15,592.92
06/30/1997 $19,552.24 06/30/1997 $19,941.73 06/30/1997 $16,261.20
07/31/1997 $21,386.58 07/31/1997 $21,527.57 07/31/1997 $17,017.85
08/29/1997 $21,715.28 08/29/1997 $20,322.46 08/29/1997 $17,407.21
09/30/1997 $23,178.52 09/30/1997 $21,434.83 09/30/1997 $18,681.35
10/31/1997 $20,877.63 10/31/1997 $20,719.77 10/31/1997 $17,860.67
11/28/1997 $20,873.45 11/28/1997 $21,678.14 11/28/1997 $17,745.15
12/31/1997 $20,680.06 12/31/1997 $22,050.17 12/31/1997 $18,055.74
01/30/1998 $20,821.88 01/30/1998 $22,293.82 01/30/1998 $17,770.79
02/27/1998 $22,381.91 02/27/1998 $23,900.81 02/27/1998 $19,084.82
03/31/1998 $23,323.09 03/31/1998 $25,123.75 03/31/1998 $19,871.92
04/30/1998 $23,556.23 04/30/1998 $25,376.39 04/30/1998 $19,981.88
05/29/1998 $22,295.22 05/29/1998 $24,940.81 05/29/1998 $18,905.71
06/30/1998 $23,894.24 06/30/1998 $25,953.15 06/30/1998 $18,945.49
07/31/1998 $23,218.23 07/31/1998 $25,677.49 07/31/1998 $17,411.78
08/31/1998 $19,708.19 08/31/1998 $21,968.88 08/31/1998 $14,030.77
09/30/1998 $21,216.21 09/30/1998 $23,376.29 09/30/1998 $15,128.78
10/30/1998 $21,034.21 10/30/1998 $25,276.05 10/30/1998 $15,745.79
11/30/1998 $23,010.23 11/30/1998 $26,807.35 11/30/1998 $16,570.75
12/31/1998 $26,293.20 12/31/1998 $28,351.11 12/31/1998 $17,596.18
01/29/1999 $28,175.12 01/29/1999 $29,536.21 01/29/1999 $17,830.01
02/26/1999 $25,540.43 02/26/1999 $28,618.39 02/26/1999 $16,385.88
03/31/1999 $27,825.62 03/31/1999 $29,763.07 03/31/1999 $16,641.69
04/30/1999 $27,664.32 04/30/1999 $30,913.05 04/30/1999 $18,132.90
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AVERAGE ANNUAL PERFORMANCE FOR THE PERIODS ENDED
APRIL 30, 1999
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INCEPTION ONE YEAR SIX MONTH
--------- -------- ---------
BONNEL GROWTH FUND
(INCEPTION 10/17/94) 25.09% 17.44% 31.52%
S&P 500 INDEX 28.51% 21.82% 22.30%
RUSSELL 2000 INDEX 13.99% (9.25%) 15.16%
PAST PERFORMANCE IS NOT PREDICTIVE OF FUTURE RESULTS.
INVESTMENT RETURN AND PRINCIPAL VALUE MAY FLUCTUATE SO THAT
SHARES, WHEN REDEEMED, MAY BE WORTH MORE OR LESS THAN THEIR
ORIGINAL VALUE. THE RUSSELL 2000 INDEX IS AN UNMANAGED INDEX
THAT CONSISTS OF 2,000 SMALL- AND MID-CAP PUBLICLY TRADED
COMPANIES.
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SIX MONTHS IN REVIEW - ECONOMIC AND POLITICAL ISSUES
The past six months have seen both economic and political extremes. Many
Americans wanted President Clinton to resign from office instead of going
through an impeachment trial. As we know, he was able to stay in office. The
Federal Reserve lowered the discount rate to 4.50% from 4.75% to help alleviate
financial pressure on our economy. The prodigious gains of past economic
expansions did not materialize in this expansion. It is a paradox--an expansion
that is not creating inflation.
The U.S. attacked Iraq, again. The Euro became the new currency of Europe and
will be a major force in the world's economic growth. It should take five to ten
years, but the long-range economic impact is going to be significant. NATO began
bombing the Serbians. This is the first war in which NATO has been involved.
There was another currency crisis in Brazil.
A major milestone was reached and finally surpassed when the Dow Jones
Industrials crossed 10,000. It did it with such alacrity that most major market
analysts were confused. The next major goal, of course, is 20,000, which we
should see before the year 2006, and then 100,000 by the year 2024, figuring a
10% average annual return.
INVESTMENT HIGHLIGHTS
The fund has maintained diversity while looking for quality growth issues. Ann
Taylor is one of our retail holdings. It operates over 350 stores in 41 states.
It sells better-quality women's apparel, accessories and shoes. Most stores are
located in upscale malls and specialty retail centers. Another retail holding is
the Gap. It operates over 2,300 casual-apparel specialty stores with over 17.9
million square feet of space. The Banana Republic and Old Navy are part of the
Gap.
In healthcare, we own Bausch and Lomb, a leading manufacturer of healthcare and
optical products. The vision care segment of the company accounts for over 40%
of its sales. They sell Ray-Ban and Killer Loop. They also manufacture MIRACLE
EAR hearing aids. Abbott Labs makes healthcare products including drugs,
diagnostic tests, intravenous solutions, laboratory and hospital instruments,
infant formulas and nutritional products.
In technology, we cover most areas. The one most people are interested in now is
the Internet. This is going to change the way we run our daily lives--including
buying clothes, airline tickets, cars and even grocery shopping. We hold America
Online, which is the leading provider of
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BONNEL GROWTH FUND
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online information services, with over 16 million subscribers. The company
offers electronic mail and conferencing, online forums and classes, along with
newspapers, magazines and access to the Internet. The interesting thing about
America Online is that it was incorporated in 1985. Today it is one of the
largest companies in terms of market cap. It employs over 8,000 people.
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
The U.S. economy is still on solid footing. Inflation is tame and most economic
numbers are increasing at a slow and steady pace, which is good for the stock
market. The rest of the world is getting back on its feet, which will help our
companies expand sales and profits. It doesn't look like the Federal Reserve is
going to raise interest rates anytime soon. There will be some corrections.
These can be viewed as buying opportunities. There is so much money flowing into
the market, and so many mergers taking shares off the market, that the
supply/demand equation is positive for the long term. As mentioned above, the
next objective for the Dow is 20,000. It will get there sooner rather than
later, with corrections thrown in to add spice to your life.
The bottom-line strategy for investors today: Max out your IRA and your 401(k)
or any other employer-sponsored retirement plan.
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------------------------------------------------
TOP 10 HOLDINGS BASED ON TOTAL INVESTMENTS
------------------------------------------------
INTERNATIONAL BUSINESS MACHINES CO.. 3.79%
COMPUTERS & DATA PROCESSING
CISCO SYSTEMS, INC .................. 3.62%
COMPUTERS & DATA PROCESSING
UNIPHASE CORP ....................... 2.75%
ELECTRONICS & COMPONENTS
TCA CABLE TV, INC ................... 2.26%
CABLE
JOHNSON & JOHNSON ................... 2.21%
MEDICAL PRODUCTS
UNITED TECHNOLOGIES CORP ............ 1.97%
DIVERSIFIED MANUFACTURING
AMERICA ONLINE, INC .................. 1.94%
INTERNET
SUN MICROSYSTEMS, INC ............... 1.90%
COMPUTERS & DATA PROCESSING
MICROSOFT CORP ...................... 1.84%
COMPUTER SOFTWARE & HARDWARE
GAP, INC ............................ 1.81%
RETAIL
------------------------------------------------
TOP 5 INDUSTRIES BASED ON TOTAL INVESTMENTS
------------------------------------------------
COMPUTERS & DATA PROCESSING ....... 13.17%
RETAIL ............................ 11.64%
ELECTRONICS & COMPONENTS .......... 8.36%
COMPUTER SOFTWARE & HARDWARE ...... 7.57%
FINANCIAL SERVICES ................ 4.47%
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MEGATRENDS FUND
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MANAGEMENT TEAM'S PERSPECTIVE
INTRODUCTION
As its name implies, the mission of the MegaTrends Fund is to capitalize on
important and enduring economic trends. The most important trend in the world
today is the necessity for growth. This is the major reason we have been heavily
invested in stocks (over 90 percent) for the past several years. The other major
trends we see unfolding--as a result of sustained long-term growth--are higher
commodity prices and eventually higher inflation.
The fund seeks long-term capital appreciation consistent with the preservation
of capital.
PERFORMANCE
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MEGATRENDS FUND
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[GRAPHIC: Linear graph plotted from data in table below.]
LIPPER FLEXIBLE
MEGATRENDS GROWTH FUND S&P 500 INDEX PORTFOLIO FUND INDEX
- ----------------------- ----------------------- -----------------------
DATE BEGIN/ CUMULATIVE DATE BEGIN/ CUMULATIVE DATE BEGIN/ CUMULATIVE
END RETURN END RETURN END RETURN
- ---------- ---------- ---------- ---------- ---------- ----------
10/21/1991 $10,000.00 $10,000.00 $10,000.00
10/31/1991 $ 9,990.00 10/31/1991 $10,000.00 10/31/1991 $10,000.00
11/29/1991 $ 9,880.00 11/29/1991 $ 9,598.18 11/29/1991 $ 9,784.60
12/31/1991 $10,423.30 12/31/1991 $10,694.03 12/31/1991 $10,624.72
01/31/1992 $10,373.14 01/31/1992 $10,494.99 01/31/1992 $10,567.45
02/28/1992 $10,503.56 02/28/1992 $10,630.85 02/28/1992 $10,683.28
03/31/1992 $10,413.27 03/31/1992 $10,424.34 03/31/1992 $10,455.52
04/30/1992 $10,503.56 04/30/1992 $10,730.08 04/30/1992 $10,478.30
05/29/1992 $10,533.65 05/29/1992 $10,782.55 05/29/1992 $10,605.84
06/30/1992 $10,550.31 06/30/1992 $10,622.19 06/30/1992 $10,495.22
07/31/1992 $10,723.43 07/31/1992 $11,055.78 07/31/1992 $10,809.53
08/31/1992 $10,703.06 08/31/1992 $10,829.93 08/31/1992 $10,704.76
09/30/1992 $10,845.63 09/30/1992 $10,957.24 09/30/1992 $10,831.00
10/28/1992 $10,947.47 10/30/1992 $10,994.84 10/30/1992 $10,831.65
11/30/1992 $11,039.12 11/30/1992 $11,368.19 11/30/1992 $11,070.48
12/31/1992 $11,071.08 12/31/1992 $11,507.66 12/31/1992 $11,226.65
01/29/1993 $11,122.43 01/29/1993 $11,603.77 01/29/1993 $11,414.72
02/26/1993 $11,142.97 02/26/1993 $11,761.86 02/26/1993 $11,442.05
03/31/1993 $11,214.86 03/31/1993 $12,009.87 03/31/1993 $11,682.83
04/30/1993 $11,112.16 04/30/1993 $11,719.59 04/30/1993 $11,563.09
05/28/1993 $11,204.59 05/31/1993 $12,032.32 05/31/1993 $11,797.36
06/30/1993 $11,266.21 06/30/1993 $12,067.43 06/30/1993 $11,887.81
07/30/1993 $11,266.21 07/30/1993 $12,018.85 07/30/1993 $11,932.71
08/31/1993 $11,390.93 08/31/1993 $12,473.87 08/31/1993 $12,338.78
09/30/1993 $11,401.33 09/30/1993 $12,378.21 09/30/1993 $12,384.98
10/29/1993 $11,370.15 10/29/1993 $12,634.10 10/29/1993 $12,564.59
11/30/1993 $11,266.21 11/30/1993 $12,513.68 11/30/1993 $12,390.84
12/31/1993 $11,388.75 12/31/1993 $12,664.97 12/31/1993 $12,655.69
01/31/1994 $11,675.33 01/31/1994 $13,095.13 01/31/1994 $13,000.59
02/28/1994 $11,473.66 02/28/1994 $12,740.03 02/28/1994 $12,716.21
03/31/1994 $11,378.14 03/31/1994 $12,185.66 03/31/1994 $12,206.68
04/29/1994 $11,208.31 04/29/1994 $12,341.78 04/29/1994 $12,254.83
05/31/1994 $11,325.07 05/31/1994 $12,543.53 05/31/1994 $12,297.78
06/30/1994 $11,096.87 06/30/1994 $12,236.58 06/30/1994 $12,039.44
07/29/1994 $11,183.14 07/29/1994 $12,638.10 07/29/1994 $12,325.76
08/31/1994 $11,323.33 08/31/1994 $13,155.06 08/31/1994 $12,675.21
09/30/1994 $11,215.49 09/30/1994 $12,833.63 09/30/1994 $12,454.61
10/31/1994 $11,247.85 10/31/1994 $13,121.54 10/31/1994 $12,544.41
11/30/1994 $10,902.75 11/30/1994 $12,644.27 11/30/1994 $12,243.12
12/30/1994 $11,037.55 12/30/1994 $12,831.58 12/30/1994 $12,317.30
01/31/1995 $11,114.51 01/31/1995 $13,164.11 01/31/1995 $12,414.26
02/28/1995 $11,444.32 02/28/1995 $13,676.63 02/28/1995 $12,775.43
03/31/1995 $11,631.21 03/31/1995 $14,079.56 03/31/1995 $13,045.49
04/28/1995 $11,895.05 04/28/1995 $14,493.84 04/28/1995 $13,290.17
05/31/1995 $12,279.83 05/31/1995 $15,072.26 05/31/1995 $13,712.50
06/30/1995 $12,450.23 06/30/1995 $15,421.73 06/30/1995 $13,994.27
07/31/1995 $12,583.98 07/31/1995 $15,932.92 07/31/1995 $14,358.04
08/31/1995 $12,617.42 08/31/1995 $15,972.69 08/31/1995 $14,479.73
09/29/1995 $12,751.18 09/29/1995 $16,646.39 09/29/1995 $14,744.58
10/31/1995 $12,795.76 10/31/1995 $16,586.92 10/31/1995 $14,635.91
11/30/1995 $13,263.90 11/30/1995 $17,314.23 11/30/1995 $15,063.45
12/29/1995 $13,710.52 12/29/1995 $17,647.75 12/29/1995 $15,223.53
01/31/1996 $13,939.22 01/31/1996 $18,247.70 01/31/1996 $15,518.32
02/29/1996 $13,984.96 02/29/1996 $18,417.46 02/29/1996 $15,599.01
03/29/1996 $13,973.53 03/29/1996 $18,594.78 03/29/1996 $15,709.64
04/30/1996 $14,293.71 04/30/1996 $18,868.67 04/30/1996 $15,945.86
05/31/1996 $14,568.15 05/31/1996 $19,354.46 05/31/1996 $16,148.24
06/28/1996 $14,579.35 06/28/1996 $19,428.25 06/28/1996 $16,123.51
07/31/1996 $13,764.36 07/31/1996 $18,570.38 07/31/1996 $15,622.44
08/30/1996 $14,165.39 08/30/1996 $18,962.68 08/30/1996 $15,892.50
09/30/1996 $14,631.10 09/30/1996 $20,029.00 09/30/1996 $16,494.44
10/31/1996 $15,355.54 10/31/1996 $20,581.20 10/31/1996 $16,792.48
11/29/1996 $16,015.29 11/29/1996 $22,135.52 11/29/1996 $17,605.91
12/31/1996 $15,821.25 12/31/1996 $21,697.03 12/31/1996 $17,370.34
01/31/1997 $16,651.17 01/31/1997 $23,051.83 01/31/1997 $17,871.41
02/28/1997 $16,308.66 02/28/1997 $23,232.80 02/28/1997 $17,846.03
03/31/1997 $15,952.98 03/31/1997 $22,279.98 03/31/1997 $17,307.22
04/30/1997 $16,203.28 04/30/1997 $23,608.89 04/30/1997 $17,761.44
05/30/1997 $17,309.84 05/30/1997 $25,045.21 05/30/1997 $18,515.65
06/30/1997 $17,745.88 06/30/1997 $26,166.62 06/30/1997 $19,060.97
07/31/1997 $18,931.57 07/31/1997 $28,247.49 07/31/1997 $20,133.40
08/29/1997 $18,312.38 08/29/1997 $26,666.20 08/29/1997 $19,500.88
09/30/1997 $19,300.46 09/30/1997 $28,125.79 09/30/1997 $20,326.67
10/31/1997 $18,286.03 10/31/1997 $27,187.53 10/31/1997 $19,899.13
11/28/1997 $18,378.25 11/28/1997 $28,445.06 11/28/1997 $20,259.65
12/31/1997 $18,287.35 12/31/1997 $28,933.22 12/31/1997 $20,539.47
01/30/1998 $18,364.44 01/30/1998 $29,252.92 01/30/1998 $20,661.61
02/27/1998 $19,382.12 02/27/1998 $31,361.55 02/27/1998 $21,663.17
03/31/1998 $20,214.77 03/31/1998 $32,966.24 03/31/1998 $22,393.96
04/30/1998 $20,538.57 04/30/1998 $33,297.74 04/30/1998 $22,534.46
05/29/1998 $19,705.93 05/29/1998 $32,726.19 05/29/1998 $22,309.10
06/30/1998 $19,736.77 06/30/1998 $34,054.53 06/30/1998 $22,739.31
07/31/1998 $18,379.86 07/31/1998 $33,692.83 07/31/1998 $22,503.35
08/31/1998 $15,666.06 08/31/1998 $28,826.55 08/31/1998 $20,293.62
09/30/1998 $16,591.22 09/30/1998 $30,673.29 09/30/1998 $21,101.06
10/30/1998 $17,500.96 10/30/1998 $33,166.07 10/30/1998 $22,101.13
11/30/1998 $18,148.57 11/30/1998 $35,175.37 11/30/1998 $23,008.39
12/31/1998 $18,703.98 12/31/1998 $37,201.02 12/31/1998 $23,931.15
01/29/1999 $19,071.09 01/29/1999 $38,756.06 01/29/1999 $24,392.53
02/26/1999 $18,373.59 02/26/1999 $37,551.74 02/26/1999 $23,720.31
03/31/1999 $19,254.64 03/31/1999 $39,053.74 03/31/1999 $24,311.19
04/30/1999 $19,878.72 04/30/1999 $40,562.69 04/30/1999 $25,025.05
--------------------------------------------------------------------
AVERAGE ANNUAL PERFORMANCE FOR THE PERIODS ENDED
APRIL 30, 1999
--------------------------------------------------------------------
INCEPTION FIVE YEAR ONE YEAR SIX MONTH
--------- --------- -------- ---------
MEGATRENDS FUND
(INCEPTION 10/21/91) 9.56% 12.14% (3.21%) 13.59%
S&P 500 INDEX 20.52% 26.87% 21.82% 22.30%
LIPPER FLEXIBLE
PORTFOLIO
FUND INDEX 13.01% 15.35% 11.05% 13.23%
PAST PERFORMANCE IS NOT PREDICTIVE OF FUTURE RESULTS. INVESTMENT
RETURN AND PRINCIPAL VALUE MAY FLUCTUATE SO THAT SHARES, WHEN
REDEEMED, MAY BE WORTH MORE OR LESS THAN THEIR ORIGINAL VALUE. THE
LIPPER FLEXIBLE PORTFOLIO FUND INDEX ALLOCATES INVESTMENTS ACROSS
VARIOUS ASSET CLASSES, INCLUDING DOMESTIC COMMON STOCKS, BONDS,
AND MONEY MARKET INSTRUMENTS WITH A FOCUS ON TOTAL RETURNS.
10
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- --------------------------------------------------------------------------------
MEGATRENDS FUND
- --------------------------------------------------------------------------------
SIX MONTHS IN REVIEW - ECONOMIC AND POLITICAL ISSUES
The dramatic activity of the market this past six months, including the fact
that the 50 largest stocks in the S&P 500 accounted for the majority of the six
month performance, is indicative of what has taken place in the market through
the five quarters ended March 31, 1999. The bottom line is that the gap between
big-cap performance and small-cap performance was nearly 40 percent. This is the
widest gap ever recorded over that period of time.
Moreover, those five quarters were a continuation of a five-year trend in which
the biggest cap stocks--those with market valuations over $50 billion--posted
annual gains well in excess of 30 percent a year. By contrast, during the same
five years, the majority of the companies that represent about 97 percent of all
stocks, rose at an annual rate of less than 7 percent a year.
What made this situation so dangerous was that, on average, the big-cap stocks
were rising much faster than their profits. In other words, the bulk of the
gains in these stocks was coming from rising price-to-earnings ratios (P/Es).
That kind of situation cannot go on forever. Keep in mind that rising P/Es
reflect rising growth expectations. Big companies cannot increase their growth
rates, and P/Es cannot rise forever.
INVESTMENT HIGHLIGHTS
While, the MegaTrends Fund's portfolio includes a few big-cap stocks, we have
been extremely selective in this area. That was a mistake in 1998, but we
believe the performance in the near future will be outside the big names.
The fund is heavily weighted in Real Estate Investment Trusts (REITs) and energy
service companies. The REITs in the fund have several common characteristics.
Each had strong growth over the past several years and consistent increases in
earnings and dividends. Yet each is selling well below its 24-month highs.
Oil service companies will benefit not only from strong worldwide growth, which
will increase the demand for oil, but also from a shortage of rigs and other oil
service equipment. Indeed, the overall fundamentals for many oil service
companies are better today than at the group's 1997 high. Yet many of these
stocks are trading 50 percent or more below those highs.
11
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- --------------------------------------------------------------------------------
MEGATRENDS FUND
- --------------------------------------------------------------------------------
We also have a major position in Berkshire Hathaway, which we regard as a unique
and undervalued equity. Investors have been slow to grasp that Berkshire
Hathaway, under the leadership of Warren Buffett, arguably the world's most
successful investor, has made a transition from a holding company to a
potentially dominant insurance company. The stock is trading at only a little
more than 10 times underlying earnings power and is facing growth of at least 15
percent a year for the foreseeable future.
CURRENT OUTLOOK
One of two things has to happen. The big stocks may crack. That could be a big
threat to the entire economy, which has come to depend heavily on the stock
market's well being. The second, and most likely, is that the market will
broaden out.
Our longstanding forecast of growth, and eventually growth with rising
inflation, is showing signs of panning out. After the frightening interlude in
1998, in which many emerging economies entered severe recessions, worldwide
deflation has taken hold in a major way. Industrial production in most emerging
economies is now positive. Japan is showing signs of coming out of the worst
recession any industrialized economy has experienced since the end of World War
II. Recently, Japan's leading indicators turned positive, and the Japanese stock
market, led by its financial and small-cap stocks, has been surging. These are
strong signs that this beleaguered giant is reawakening.
12
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- --------------------------------------------------------------------------------
MEGATRENDS FUND
- --------------------------------------------------------------------------------
------------------------------------------------
TOP 10 HOLDINGS BASED ON TOTAL INVESTMENTS
------------------------------------------------
BERKSHIRE HATHAWAY, INC ........... 17.73%
HOLDING COMPANY
BRE PROPERTIES, INC ............... 5.23%
REAL ESTATE INVESTMENT TRUSTS
SONY CORP ......................... 4.74%
COMMUNICATIONS EQUIPMENT
MCI WORLDCOM, INC ................. 4.64%
TELECOMMUNICATIONS
SCHLUMBERGER, LTD ................. 4.59%
OIL & GAS EXTRACTION & SERVICES
NEW PLAN EXCEL REALTY TRUST ....... 4.47%
REAL ESTATE INVESTMENT TRUSTS
NABORS INDUSTRIES, INC ............ 4.22%
OIL & GAS EXTRACTION & SERVICES
UNUM CORP ......................... 4.20%
INSURANCE
PFIZER, INC ....................... 3.54%
HEALTHCARE EQUIPMENT
CISCO SYSTEMS, INC ................ 3.51%
COMPUTERS & DATA PROCESSING
------------------------------------------------
TOP 5 INDUSTRIES BASED ON TOTAL INVESTMENTS
------------------------------------------------
HOLDING COMPANY ................... 17.73%
OIL & GAS EXTRACTION & SERVICES ... 13.86%
REAL ESTATE INVESTMENT TRUSTS ..... 11.62%
COMPUTERS & DATA PROCESSING ....... 6.75%
TELECOMMUNICATIONS ................ 4.64%
13
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- --------------------------------------------------------------------------------
GLOBAL BLUE CHIP FUND
- --------------------------------------------------------------------------------
MANAGEMENT TEAM'S PERSPECTIVE
INTRODUCTION
The Global Blue Chip Fund seeks long-term growth of capital. The fund's
investment strategy incorporates a top-down macro analysis study of markets with
a bottom-up stock selection discipline. The application of this strategy has
aided us in addressing market volatility, revitalizing the fund's performance
and investing in the leading growth stocks.
PERFORMANCE
- --------------------------------------------------------------------------------
GLOBAL BLUE CHIP FUND
- --------------------------------------------------------------------------------
[GRAPHIC: Linear graph plotted from data in table below.]
DOW JONES
GLOBAL BLUE CHIP FUND S&P 500 INDEX WORLD INDEX
- ----------------------- ----------------------- ------------------------
DATE BEGIN/ CUMULATIVE DATE BEGIN/ CUMULATIVE DATE BEGIN/ CUMULATIVE
END RETURN END RETURN END RETURN
- ---------- ---------- ---------- ---------- ---------- -----------
02/19/1997 $10,000.00 01/31/1997 $10,000.00 01/31/1997 $10,000.00
02/28/1997 $9,940.00 02/28/1997 $10,078.51 02/28/1997 $10,124.79
03/31/1997 $9,730.00 03/31/1997 $9,665.17 03/31/1997 $9,918.57
04/30/1997 $9,550.00 04/30/1997 $10,241.66 04/30/1997 $10,217.35
05/30/1997 $9,690.00 05/30/1997 $10,864.74 05/31/1997 $10,896.95
06/30/1997 $9,670.00 06/30/1997 $11,351.21 06/30/1997 $11,421.88
07/31/1997 $9,710.00 07/31/1997 $12,253.91 07/31/1997 $11,947.98
08/29/1997 $9,590.00 08/29/1997 $11,567.93 08/31/1997 $11,156.48
09/30/1997 $9,660.00 09/30/1997 $12,201.11 09/30/1997 $11,781.01
10/31/1997 $8,960.00 10/31/1997 $11,794.09 10/31/1997 $11,068.02
11/28/1997 $8,430.00 11/28/1997 $12,339.61 11/30/1997 $11,237.92
12/31/1997 $8,297.00 12/31/1997 $12,551.38 12/31/1997 $11,355.67
01/30/1998 $8,195.32 01/30/1998 $12,690.07 01/31/1998 $11,590.02
02/27/1998 $8,398.68 02/27/1998 $13,604.80 02/28/1998 $12,400.84
03/31/1998 $8,683.38 03/31/1998 $14,300.92 03/31/1998 $12,927.53
04/30/1998 $8,642.71 04/30/1998 $14,444.73 04/30/1998 $13,040.60
05/29/1998 $7,900.45 05/29/1998 $14,196.79 05/31/1998 $12,840.24
06/30/1998 $7,361.55 06/30/1998 $14,773.03 06/30/1998 $13,081.61
07/31/1998 $6,985.34 07/31/1998 $14,616.12 07/31/1998 $13,035.91
08/31/1998 $5,785.53 08/31/1998 $12,505.10 08/31/1998 $11,232.64
09/30/1998 $6,202.41 09/30/1998 $13,306.23 09/30/1998 $11,475.77
10/30/1998 $6,171.91 10/30/1998 $14,387.61 10/31/1998 $12,552.58
11/30/1998 $6,365.10 11/30/1998 $15,259.26 11/30/1998 $13,260.30
12/31/1998 $6,659.97 12/31/1998 $16,137.99 12/31/1998 $13,880.13
01/29/1999 $6,995.51 01/29/1999 $16,812.58 01/31/1999 $14,163.10
02/26/1999 $6,629.47 02/26/1999 $16,290.13 02/28/1999 $13,732.50
03/31/1999 $6,792.15 03/31/1999 $16,941.71 03/31/1999 $14,323.63
04/30/1999 $6,771.82 04/30/1999 $17,596.30 04/30/1999 $14,979.20
------------------------------------------------------------------
AVERAGE ANNUAL PERFORMANCE FOR THE PERIODS ENDED
APRIL 30, 1999
------------------------------------------------------------------
INCEPTION ONE YEAR SIX MONTH
--------- -------- ---------
GLOBAL BLUE CHIP FUND
(INCEPTION 2/20/97) (16.29%) (21.65%) 9.72%
S&P 500 INDEX 28.64% 21.82% 22.30%
DOW JONES WORLD INDEX 19.73% 14.87% 19.33%
PAST PERFORMANCE IS NOT PREDICTIVE OF FUTURE RESULTS. INVESTMENT
RETURN AND PRINCIPAL VALUE MAY FLUCTUATE SO THAT SHARES, WHEN
REDEEMED, MAY BE WORTH MORE OR LESS THAN THEIR ORIGINAL VALUE. THE
DOW JONES WORLD INDEX IS A CAPITALIZATION-WEIGHTED INDEX COMPRISED
OF COMPANIES TRADED PUBLICLY IN SELECT COUNTRIES ALL OVER THE
WORLD.
14
<PAGE>
- --------------------------------------------------------------------------------
GLOBAL BLUE CHIP FUND
- --------------------------------------------------------------------------------
SIX MONTHS IN REVIEW - ECONOMIC AND POLITICAL ISSUES
The last six months have been tumultuous for the financial markets. Japan's GDP
fell for the seventh consecutive quarter, the Brazilian Central Bank chief
resigned, British Petroleum and Amoco joined to form the second largest oil
company, the European Monetary Union launched the Euro and the CRB Bridge Index
showed that commodity prices dropped to twenty-year lows.
Despite financial turbulence and an economic slowdown in Latin America, Europe
and Asia, the fund maintained a positive return. This was primarily achieved by
investing in regions with sustainable economic stability, sectors with earnings
growth and companies with sound management parameters.
INVESTMENT HIGHLIGHTS
Given the global slowdown, the fund was able to maintain significant exposure to
international large-cap companies. During the last six months, the portfolio
team made several key changes to the portfolio holdings. The fund is now broadly
diversified on a country and sector basis. This was achieved by shifting away
from the troubled Asian economies and gaining greater exposure to select
European markets such as the United Kingdom and France.
CURRENT OUTLOOK
The board of trustees for the U.S. Global Accolade Funds approved the
termination of the Global Blue Chip Fund, subject to shareholder approval.
In anticipation of shareholder approval, the Fund intends to deviate from its
investment objective as stated in its prospectus and start disposing of its
portfolio securities. The proceeds will be invested in cash or cash equivalent
securities.
The Global Blue Chip Fund will be closed to new investors and existing
shareholders after the close of business on June 15, 1999.
15
<PAGE>
- --------------------------------------------------------------------------------
GLOBAL BLUE CHIP FUND
- --------------------------------------------------------------------------------
------------------------------------------------
TOP 10 HOLDINGS BASED ON TOTAL INVESTMENTS
------------------------------------------------
PROVIDIAN FINANCIAL CORP .......... 4.82%
FINANCIAL SERVICES
MICROSOFT CORP .................... 3.33%
COMPUTERS & DATA PROCESSING
AMERICAN INTERNATIONAL GROUP, INC . 3.13%
INSURANCE
INTEL CO .......................... 2.64%
ELECTRONICS & COMPONENTS
VODAPHONE GROUP PLC ............... 2.58%
TELECOMMUNICATIONS
SUN MICROSYSTEMS, INC ............. 2.36%
COMPUTERS & DATA PROCESSING
AMGEN, INC ........................ 2.30%
PHARMACEUTICALS
GENERAL ELECTRIC CO ............... 2.28%
DIVERSIFIED MANUFACTURING
NOKIA OYJ ......................... 2.13%
TELECOMMUNICATIONS
CISCO SYSTEMS, INC ................ 2.05%
COMPUTERS & DATA PROCESSING
------------------------------------------------
TOP 5 INDUSTRIES BASED ON TOTAL INVESTMENTS
------------------------------------------------
TELECOMMUNICATIONS ................ 17.69%
COMPUTERS & DATA PROCESSING ....... 12.08%
FINANCIAL SERVICES ................ 10.40%
PHARMACEUTICALS ................... 9.32%
RETAIL ............................ 5.58%
16
<PAGE>
- --------------------------------------------------------------------------------
REGENT EASTERN EUROPEAN FUND
- --------------------------------------------------------------------------------
MANAGEMENT TEAM'S PERSPECTIVE
INTRODUCTION
The Regent Eastern European Fund is structured to take advantage of
undervaluation and strong growth in the markets of Central and Eastern Europe.
In fact, many of the Central European markets have now reached the point where
conversion from emerging market status to developed market status is the next
step, particularly since the introduction of the Euro and European Monetary
Union.
Since the Russian crisis last year, the focus of the fund remains firmly in the
Central European markets of Poland, Hungary and the Czech Republic. While we
believe that Russia will recover and become an investable emerging market again,
we will maintain a very low Russian exposure until we see clear signs of
improvement.
PERFORMANCE
- --------------------------------------------------------------------------------
REGENT EASTERN EUROPEAN FUND
- --------------------------------------------------------------------------------
[GRAPHIC: Linear graph plotted from data in table below.]
ING BARINGS EMERGING MARKETS
REGENT EASTERN FUND EASTERN EUROPEAN INDEX
----------------------- -----------------------
DATE BEGIN/ CUMULATIVE DATE BEGIN/ CUMULATIVE
END RETURN END RETURN
---------- ---------- ---------- ----------
03/27/1997 $10,000.00 $10,000.00
03/31/1997 $10,000.00 03/31/1997 $10,000.00
04/30/1997 $10,360.00 04/30/1997 $10,083.67
05/30/1997 $10,440.00 05/30/1997 $10,275.93
06/30/1997 $11,190.00 06/30/1997 $11,255.04
07/31/1997 $11,950.00 07/31/1997 $12,429.98
08/29/1997 $11,750.00 08/29/1997 $12,215.76
09/30/1997 $12,480.00 09/30/1997 $12,762.88
10/31/1997 $11,190.00 10/31/1997 $11,279.37
11/28/1997 $10,190.00 11/28/1997 $ 9,425.59
12/31/1997 $11,237.00 12/31/1997 $10,782.70
01/30/1998 $10,272.11 01/30/1998 $ 8,797.18
02/27/1998 $11,166.64 02/27/1998 $10,327.56
03/31/1998 $11,508.38 03/31/1998 $10,846.78
04/30/1998 $11,860.16 04/30/1998 $11,022.43
05/29/1998 $ 9,960.53 05/29/1998 $ 7,991.34
06/30/1998 $ 9,819.81 06/30/1998 $ 7,622.83
07/31/1998 $10,453.02 07/31/1998 $ 8,173.51
08/31/1998 $ 7,447.78 08/31/1998 $ 4,724.66
09/30/1998 $ 7,266.86 09/30/1998 $ 4,445.17
10/30/1998 $ 8,060.89 10/30/1998 $ 5,179.80
11/30/1998 $ 8,070.94 11/30/1998 $ 5,442.68
12/31/1998 $ 8,392.57 12/31/1998 $ 5,568.48
01/29/1999 $ 8,663.95 01/29/1999 $ 5,792.78
02/26/1999 $ 7,890.02 02/26/1999 $ 5,046.88
03/31/1999 $ 8,261.91 03/31/1999 $ 5,313.32
04/30/1999 $ 8,925.27 04/30/1999 $ 5,796.34
----------------------------------------------------------------
AVERAGE ANNUAL PERFORMANCE FOR THE PERIODS ENDED
APRIL 30, 1999
----------------------------------------------------------------
INCEPTION ONE YEAR SIX MONTH
--------- -------- ---------
REGENT EASTERN EUROPEAN FUND
(INCEPTION 3/31/97) (5.29%) (24.75%) 10.72%
ING BARINGS EMERGING MARKETS-
EASTERN EUROPEAN INDEX (23.04%) (47.41%) 11.90%
PAST PERFORMANCE IS NOT PREDICTIVE OF FUTURE RESULTS. INVESTMENT
RETURN AND PRINCIPAL VALUE MAY FLUCTUATE SO THAT SHARES, WHEN
REDEEMED, MAY BE WORTH MORE OR LESS THAN THEIR ORIGINAL VALUE. THE
ING BARINGS EMERGING MARKETS - EASTERN EUROPEAN INDEX IS COMPRISED
OF INDIVIDUAL COMPANIES REPRESENTATIVE OF THE EASTERN EUROPEAN
MARKETS.
17
<PAGE>
- --------------------------------------------------------------------------------
REGENT EASTERN EUROPEAN FUND
- --------------------------------------------------------------------------------
SIX MONTHS IN REVIEW - ECONOMIC AND POLITICAL ISSUES
The past six months were probably the most turbulent six months in the history
of the Central and Eastern European stock market. There was the aftermath of the
Russia crisis, which was still affecting emerging markets in October 1998. We
also had the Balkan war over the former Yugoslav Republic of Kosovo. Both of
these events affected market sentiment in the region, causing investors to
curtail activity in these markets.
Two emerging markets, Latin America and Asia, recovered in 1999, posting gains
of over 30%. On the other hand, Central Europe remains virtually unchanged due
to the perceived and actual impact of the Kosovo war. We believe that the
long-term effects of the war are overstated. The war is within a small area of
former Yugoslavia. While there is no doubt that tourism has been affected,
industrial companies in the Central European region have been largely
unaffected.
The Balkan region of Eastern Europe is the poorest region and does not seriously
impact trade with the major Central European countries of Poland, Hungary and
the Czech Republic. While the prolonged war is not good news for the region, we
do not believe that there will be any long-term damage to economic and corporate
earnings growth in these markets.
INVESTMENT HIGHLIGHTS
The major change in our portfolio over the last six months has been our cash
position. At the beginning of the period, we held 34% of the portfolio in cash,
primarily because of worries about Russian fallout. We are now steadily reducing
our cash position, which stood at 23% on April 30, 1999.
Hungary has been the country most impacted by the Kosovo crisis. Conversely, we
expect this market to be the biggest beneficiary when the war ends. While our
weighting in Poland has remained relatively static at close to 30%, the cash
that we have spent has been used to buy quality Hungarian blue-chip companies.
Hungary is the most liquid market in the region and it has the greatest number
of dollar securities that trade on Western markets. Also, as we have noted
before, we believe Hungary has the highest quality management and growth among
the Central European countries.
Almost 5% of the portfolio has been invested in Croatia. It is not under threat
because of the war and is positioned to benefit when the war ends.
18
<PAGE>
- --------------------------------------------------------------------------------
REGENT EASTERN EUROPEAN FUND
- --------------------------------------------------------------------------------
CURRENT OUTLOOK
We believe the Central European markets are the cheapest markets in the emerging
market arena. We expect to continue to reduce our cash position by investing in
high-quality, blue-chip companies in the Central European region. We believe
these companies will benefit the most from an end to the Kosovo war.
While many other political and economic factors continue to influence the
region, such as the impact of Western European growth, we believe that the
single most important benefit for the region, in terms of stock market
performance, will come when the Kosovo situation is resolved.
19
<PAGE>
- --------------------------------------------------------------------------------
REGENT EASTERN EUROPEAN FUND
- --------------------------------------------------------------------------------
------------------------------------------------
TOP 10 HOLDINGS BASED ON TOTAL INVESTMENTS
------------------------------------------------
KGHM POLSKA MIEDZ ................. 11.26%
METALS MINING
MOL MAGYAR OLAJ-ES GAZIPARI RT. ... 10.56%
OIL & GAS EXTRACTION
ELEKTRIM SPOLKA AKCYJNA ........... 7.05%
CONGLOMERATES
BORSODCHEM RT. .................... 5.27%
CHEMICALS
CENTRAL EUROPEAN GROWTH FUND ...... 5.17%
INVESTMENT COMPANIES
MAGYAR TAVKOZLESI RT. ............. 4.97%
COMMUNICATIONS
OTP BANK .......................... 4.84%
COMMERCIAL BANKS
PLIVA ............................. 4.80%
PHARMACEUTICALS
BUDIMEX SA ........................ 4.62%
CONSTRUCTION
PRIMAGAZ HUNGARIA CO. LTD. ........ 2.38%
OIL & GAS EXTRACTION
------------------------------------------------
TOP 5 INDUSTRIES BASED ON TOTAL INVESTMENTS
------------------------------------------------
OIL & GAS EXTRACTION .............. 12.94%
METALS MINING ..................... 11.26%
COMMERCIAL BANKS .................. 8.81%
PHARMACEUTICALS ................... 7.12%
CONGLOMERATES ..................... 7.05%
20
<PAGE>
BONNEL GROWTH FUND
- --------------------------------------------------------------------------------
PORTFOLIO OF INVESTMENTS APRIL 30, 1999
- --------------------------------------------------------------------------------
COMMON STOCKS 89.88% SHARES VALUE
AIR TRANSPORTATION 0.57%
Atlas Air, Inc. ........................ 5,000 $145,000<F1>
Midwest Express Holdings ............... 5,000 156,250<F1>
Southwest Airlines Co. ................. 10,000 325,625
---------
626,875
BUILDING PRODUCTS 4.10%
American Standard Companies, Inc. ...... 10,000 457,500<F1>
Home Depot, Inc. ....................... 23,000 1,378,562
Lowe's Companies, Inc. ................. 33,000 1,740,750
Southdown, Inc. ........................ 5,000 320,313
USG Corp. .............................. 10,000 583,750
---------
4,480,875
BUSINESS SERVICES 1.65%
AC Nielsen Corp. ....................... 5,000 139,375<F1>
American Management Systems ............ 15,000 515,625<F1>
Concord EFS, Inc. ...................... 25,000 834,375<F1>
Scientific Atlanta, Inc. ............... 10,000 317,500
---------
1,806,875
CABLE TV 2.28%
TCA Cable TV, Inc. ..................... 50,000 2,490,625
COMMERCIAL PRINTING 0.20%
Consolidated Graphics, Inc. ............ 5,000 213,125<F1>
COMMERCIAL SERVICES 0.36%
Lason, Inc. ............................ 10,000 395,625<F1>
COMMUNICATIONS EQUIPMENT 1.51%
Gemstar International Group Ltd. ....... 15,000 1,580,625<F1>
Microwave Power Devices, Inc. .......... 5,000 64,063
---------
1,644,688
COMPUTER SOFTWARE & HARDWARE 7.65%
Advent Software, Inc. .................. 15,000 924,375<F1>
Caere Corp. ............................ 5,000 51,250<F1>
Citrix Systems, Inc. ................... 11,000 467,500<F1>
Clarify, Inc. .......................... 5,000 117,500<F1>
Computer Network Technology Corp. ...... 8,000 149,500<F1>
Concord Communications, Inc. ........... 15,000 671,250<F1>
Kronos, Inc. ........................... 15,000 510,000<F1>
Legato Systems, Inc. ................... 10,000 404,375<F1>
Mercury Interactive Corp. .............. 10,000 281,875<F1>
21
<PAGE>
BONNEL GROWTH FUND
- --------------------------------------------------------------------------------
PORTFOLIO OF INVESTMENTS APRIL 30, 1999
- --------------------------------------------------------------------------------
COMMON STOCKS SHARES VALUE
COMPUTER SOFTWARE & HARDWARE (CONT'D)
Microchip Technology, Inc. ............. 5,000 $ 175,000<F1>
Microsoft Corp. ........................ 25,000 2,032,812<F1>
Peregrine Systems, Inc. ................ 10,000 225,000<F1>
Rational Software Co. .................. 15,000 444,375<F1>
Timberline Software Corp. .............. 5,000 73,438
Xilinx, Inc. ........................... 40,000 1,825,000<F1>
---------
8,353,250
COMPUTERS & DATA PROCESSING 13.29%
CDW Computer Centers, Inc. ............. 13,000 1,163,500<F1>
Cisco Systems, Inc. .................... 35,000 3,992,187<F1>
FactSet Research Systems, Inc. ......... 24,500 1,142,313
First Data Corp. ....................... 5,000 212,188
Fundtech Ltd. .......................... 5,000 172,188<F1>
International Business Machines Co. .... 20,000 4,183,750
International Network Services ......... 17,500 665,000<F1>
Intervoice, Inc. ....................... 3,000 29,906<F1>
Sun Microsystems, Inc. ................. 35,000 2,093,437<F1>
TSI International Software Ltd. ........ 15,000 236,250<F1>
Unisys Corp. ........................... 20,000 628,750<F1>
---------
14,519,469
CONSUMER PRODUCTS 2.77%
---------
Clorox Co. ............................. 15,000 1,730,625
Fossil, Inc. ........................... 31,000 953,250<F1>
WestPoint Stevens, Inc. ................ 10,000 342,500<F1>
---------
3,026,375
COSMETICS & TOILETRIES 0.25%
---------
Avon Products, Inc. .................... 5,000 271,563
DIVERSIFIED MANUFACTURING 1.99%
---------
United Technologies Corp. .............. 15,000 2,173,125
ELECTRONICS & COMPONENTS 8.44%
---------
American Power Conversion Corp. ........ 5,000 165,000<F1>
EMC Co. ................................ 15,000 1,634,062<F1>
Intel Co. .............................. 10,000 611,875
Power Integrations, Inc. ............... 30,000 1,177,500<F1>
QLogic Co. ............................. 10,000 699,375<F1>
Solectron Corp. ........................ 20,000 970,000<F1>
Uniphase Corp. ......................... 25,000 3,034,375<F1>
Vitesse Semiconductor Corp. ............ 20,000 926,250<F1>
---------
9,218,437
22
<PAGE>
BONNEL GROWTH FUND
- --------------------------------------------------------------------------------
PORTFOLIO OF INVESTMENTS APRIL 30, 1999
- --------------------------------------------------------------------------------
COMMON STOCKS SHARES VALUE
FIBER OPTICS 0.98%
E-Tek Dynamics, Inc. ................... 25,000 $1,075,000<F1>
FINANCIAL SERVICES 4.51%
Charles Schwab Corp. ................... 10,000 1,097,500
Morgan Stanley Dean Witter & Co. ....... 15,000 1,487,812
Paine Webber Group, Inc. ............... 15,000 704,063
Profit Recovery Group International, Inc. 45,000 1,642,500<F1>
---------
4,931,875
GLASS CONTAINERS & PRODUCTS 0.55%
Gentex Corp. ........................... 20,000 601,250<F1>
HEALTHCARE EQUIPMENT & SERVICES 3.58%
Biogen, Inc. ........................... 10,000 950,625<F1>
Genentech, Inc., Call/Put Common Shares 20,000 1,692,500<F1>
Genzyme Co. ............................ 30,000 1,132,500<F1>
Insight Enterprises, Inc. .............. 5,000 135,000<F1>
---------
3,910,625
HOME FURNISHINGS 1.07%
---------
Ethan Allen Interiors, Inc. ............ 23,000 1,165,813
INTERNET 3.78%
---------
America Online, Inc. ................... 15,000 2,141,250<F1>
eBay, Inc. ............................. 3,000 624,375<F1>
MindSpring Enterprises, Inc. ........... 10,000 969,375<F1>
Network Solutions, Inc., Class A ....... 5,000 388,750<F1>
---------
4,123,750
MACHINERY 1.15%
---------
Johnson Controls, Inc. ................. 15,000 1,094,062
Snap-on, Inc. .......................... 5,000 162,813
---------
1,256,875
MANUFACTURING 0.14%
---------
Mueller Industries, Inc. ............... 5,000 157,500<F1>
MEDICAL EQUIPMENT 0.27%
---------
Lincare Holdings, Inc. ................. 10,000 296,250<F1>
23
<PAGE>
BONNEL GROWTH FUND
- --------------------------------------------------------------------------------
PORTFOLIO OF INVESTMENTS APRIL 30, 1999
- --------------------------------------------------------------------------------
COMMON STOCKS SHARES VALUE
MEDICAL INSTRUMENTS 0.43%
Biomet, Inc. ........................... 10,000 $ 410,000
Candela Corp. .......................... 3,000 56,250<F1>
---------
466,250
MEDICAL PRODUCTS 3.19%
Johnson & Johnson ...................... 25,000 2,437,500
Osteotech, Inc. ........................ 19,500 704,437<F1>
St. Jude Medical, Inc. ................. 5,000 139,375<F1>
Xomed Surgical Products, Inc. .......... 5,000 208,125<F1>
---------
3,489,437
METAL MINING 0.44%
Barrick Gold Corp. ..................... 10,000 201,250
Stillwater Mining Co. .................. 10,000 283,125<F1>
---------
484,375
MOTION PICTURES & SERVICES 0.13%
Macrovision Corp. ...................... 3,000 141,000<F1>
MOTOR VEHICLES 1.87%
Arvin Industries, Inc. ................. 5,000 183,125
Borg-Warner Automotive, Inc. ........... 3,000 170,250
Harley-Davidson, Inc. .................. 20,000 1,192,500
Winnebago Industries, Inc. ............. 35,000 500,937
---------
2,046,812
MOTOR VEHICLE RENTAL 1.38%
---------
Avis Rent A Car, Inc. .................. 10,000 313,750<F1>
Hertz Corp., Class A ................... 20,000 1,193,750
---------
1,507,500
OPTICAL SUPPLIES 1.03%
---------
Bausch & Lomb, Inc. .................... 15,000 1,125,000
PHARMACEUTICALS 3.48%
---------
Abbott Laboratories .................... 25,000 1,210,938
Amgen, Inc. ............................ 15,000 921,562<F1>
Biovail Corp. .......................... 20,000 701,250<F1>
Schering-Plough Corp. .................. 13,000 628,062
Warner-Lambert Co. ..................... 5,000 339,688
---------
3,801,500
24
<PAGE>
BONNEL GROWTH FUND
- --------------------------------------------------------------------------------
PORTFOLIO OF INVESTMENTS APRIL 30, 1999
- --------------------------------------------------------------------------------
COMMON STOCKS SHARES VALUE
PHOTOGRAPHIC EQUIPMENT 1.61%
Xerox .................................. 30,000 $1,762,500
RESTAURANTS 0.24%
Brinker International, Inc. ............ 5,000 138,125<F1>
Foodmaker, Inc. ........................ 5,000 120,625<F1>
----------
258,750
RETAIL 11.75%
AnnTaylor Stores Corp. ................. 20,000 950,000<F1>
Costco Companies, Inc. ................. 20,000 1,618,750<F1>
Dayton Hudson Corp. .................... 15,000 1,009,687
Footstar, Inc. ......................... 5,000 169,063<F1>
Gap, Inc. .............................. 30,000 1,996,875
Kroger Co. ............................. 15,000 814,687<F1>
K-Swiss, Inc., Class A ................. 8,000 336,000
Linens 'n Things, Inc. ................. 10,000 457,500<F1>
Quiksilver, Inc. ....................... 15,000 398,437<F1>
Safeway, Inc. .......................... 15,000 809,063<F1>
Tarrant Apparel Group .................. 20,000 942,500<F1>
The Men's Wearhouse, Inc. .............. 10,000 273,750<F1>
Tiffany & Co. .......................... 20,000 1,680,000
Wal-Mart Stores, Inc. .................. 30,000 1,380,000
----------
12,836,312
SATELLITE NETWORKS 0.48%
Gilat Satellite Networks Ltd. .......... 10,000 520,000<F1>
TELECOMMUNICATIONS 2.15%
GeoTel Communications Corp. ............ 15,000 843,750
Lucent Technologies, Inc. .............. 25,000 1,503,125
----------
2,346,875
TIRES 0.20%
----------
Cooper Tire & Rubber Co. ............... 10,000 219,375
WHOLESALE & DISTRIBUTION 0.41%
----------
Genuine Parts Co. ...................... 5,000 150,000
Sysco Corp. ............................ 10,000 296,875
----------
446,875
----------
TOTAL COMMON STOCKS .................... 98,192,406
----------
(cost $90,151,821)
25
<PAGE>
BONNEL GROWTH FUND
- --------------------------------------------------------------------------------
PORTFOLIO OF INVESTMENTS APRIL 30, 1999
- --------------------------------------------------------------------------------
PRINCIPAL
REPURCHASE AGREEMENT 11.07% AMOUNT VALUE
- ---------------------------------------- ----------- ------------
Joint Tri-Party Repurchase Agreement,
Donaldson, Lufkin & Jenrette, 4/30/99,
4.88%, due 5/3/99, repurchase price
$12,093,799, collateralized by
U.S. Treasury securities held in a
joint tri-party account
(cost $12,088,883) $12,088,883 $ 12,088,883
----------- ------------
TOTAL INVESTMENTS 100.95% 110,281,289
(cost $102,240,704)
Other assets and liabilities, net (0.95)% (1,032,725)
------------
NET ASSETS 100% $109,248,564
------------
<F1> Non-income producing security
See accompanying notes to portfolios of investments.
26
<PAGE>
MEGATRENDS FUND
- --------------------------------------------------------------------------------
PORTFOLIO OF INVESTMENTS APRIL 30, 1999
- --------------------------------------------------------------------------------
COMMON STOCKS 90.94% SHARES VALUE
AEROSPACE 2.72%
AlliedSignal, Inc. ..................... 9,000 $ 528,750
BANKS 4.39%
Bank of New York Co., Inc. ............. 10,000 400,000
Chase Manhattan Co. .................... 5,500 455,125
---------
855,125
BUILDING PRODUCTS 0.92%
Home Depot, Inc. ....................... 3,000 179,813
COMMUNICATIONS EQUIPMENT 4.75%
Sony Corp., ADR ........................ 10,000 925,000
COMPUTERS & DATA PROCESSING 6.76%
Cisco Systems, Inc. .................... 6,000 684,375<F1>
Hewlett Packard Co. .................... 8,000 631,000
---------
1,315,375
ELECTRONICS & COMPONENTS 2.51%
Intel Corp. ............................ 8,000 489,500
ENTERTAINMENT 1.47%
Walt Disney Co. ........................ 9,000 285,750
FINANCIAL SERVICES 2.19%
Fannie Mae ............................. 6,000 425,625
HEALTHCARE EQUIPMENT 3.55%
Pfizer, Inc. ........................... 6,000 690,375
HOLDING COMPANY 17.77%
Berkshire Hathaway, Inc., Class A ...... 30 2,292,000<F1>
Berkshire Hathaway, Inc., Class B ...... 472 1,165,840<F1>
---------
3,457,840
INSURANCE 4.21%
UNUM Corp. ............................. 15,000 819,375
MANUFACTURING 3.39%
Arch Chemical, Inc. .................... 30,000 660,000<F1>
27
<PAGE>
MEGATRENDS FUND
- --------------------------------------------------------------------------------
PORTFOLIO OF INVESTMENTS APRIL 30, 1999
- --------------------------------------------------------------------------------
COMMON STOCKS SHARES VALUE
MEDICINE 2.65%
Elan Corp. plc, ADR .................... 10,000 $ 515,000<F1>
METAL MINING 1.64%
Stillwater Mining Co. .................. 11,250 318,516<F1>
OIL & GAS EXTRACTION & SERVICES 13.89%
Diamond Offshore Drilling, Inc. ........ 15,000 495,937
Nabors Industries, Inc. ................ 40,000 822,500<F1>
Noble Drilling Corp. ................... 25,000 490,625<F1>
Schlumberger Ltd. ...................... 14,000 894,250
---------
2,703,312
REAL ESTATE INVESTMENT TRUSTS 11.64%
BRE Properties, Inc., Class A .......... 41,000 1,019,875
Crescent Real Estate Equities Co. ...... 16,700 373,663
New Plan Excel Realty Trust ............ 47,000 872,437
---------
2,265,975
RETAIL 1.85%
AutoZone, Inc. ......................... 12,000 360,000<F1>
TELECOMMUNICATIONS 4.64%
MCI Worldcom, Inc. ..................... 11,000 904,062<F1>
TOTAL COMMON STOCKS .................... 17,699,393
(cost $14,576,097)
PRINCIPAL
REPURCHASE AGREEMENT 9.24% AMOUNT
- ----------------------------------------- ---------- -----------
Joint Tri-Party Repurchase Agreement,
Donaldson, Lufkin & Jenrette, 4/30/99,
4.88%, due 5/3/99, repurchase price
$1,799,409, collateralized by U.S.
Treasury securities held in a joint
tri-party repurchase account (cost
$1,798,678) $1,798,678 1,798,678
---------- ---------
TOTAL INVESTMENTS 100.18% 19,498,071
(cost $16,374,775)
Other assets and liabilities, net (0.18)% (35,721)
-----------
NET ASSETS 100% $19,462,350
-----------
ADR - American Depository Receipt
<F1> Non-income producing security
See accompanying notes to portfolios of investments.
28
<PAGE>
GLOBAL BLUE CHIP FUND
- --------------------------------------------------------------------------------
PORTFOLIO OF INVESTMENTS APRIL 30, 1999
- --------------------------------------------------------------------------------
COMMON STOCKS 96.30% SHARES VALUE
AUTOMOBILES 3.06%
DaimlerChrysler AG ..................... 260 $ 25,529<F1>
Ford Motor Co. ......................... 100 6,394
General Motors Co. ..................... 100 8,894
---------
40,817
BANKS 1.24%
Chase Manhattan Co. .................... 200 16,550
BASE METAL MININGS 0.00%
Yuma Copper Co. Units (RS) ............. 60,000 0<F1>
BEVERAGES 3.87%
Anheuser-Busch Companies, Inc. ......... 240 17,550
Buenos Aires Embotelladora, ADR ........ 4,000 0<F1>
Diageo plc, ADR ........................ 500 23,063
Pepsico, Inc. .......................... 300 11,081
---------
51,694
BUILDING PRODUCTS 2.09%
Lowe's Companies, Inc. ................. 530 27,958
CHEMICALS 1.96%
Dow Chemical Co. ....................... 200 26,237
COMMUNICATIONS EQUIPMENT 1.39%
Sony Corp., ADR ........................ 200 18,500
COMPUTERS & DATA PROCESSING 12.59%
Cap Gemini SA .......................... 150 22,930
Cisco Systems, Inc. .................... 250 28,516<F1>
Dell Computer Co. ...................... 400 16,475<F1>
International Business Machines Co. .... 100 20,919
Microsoft Corp. ........................ 570 46,348<F1>
Sun Microsystems, Inc. ................. 550 32,897<F1>
---------
168,085
DIVERSIFIED MANUFACTURING 5.70%
---------
General Electric Co. ................... 300 31,650
Tyco International Ltd. ................ 325 26,406
United Technologies Corp. .............. 125 18,109
---------
76,165
29
<PAGE>
GLOBAL BLUE CHIP FUND
- --------------------------------------------------------------------------------
PORTFOLIO OF INVESTMENTS APRIL 30, 1999
- --------------------------------------------------------------------------------
COMMON STOCKS SHARES VALUE
DIVERSIFIED MINING 0.92%
De Beers Ltd., ADR ..................... 500 $ 12,250
ELECTRONICS & COMPONENTS 4.22%
EMC Co. ................................ 180 19,609<F1>
Intel Co. .............................. 600 36,712
---------
56,321
FINANCIAL SERVICES 10.83%
American Express ....................... 170 22,217
Charles Schwab Corp. ................... 150 16,462
Citigroup, Inc. ........................ 300 22,575
Fannie Mae ............................. 230 16,316
Providian Financial Corp. .............. 520 67,113
---------
144,683
INSURANCE 3.26%
American International Group, Inc. ..... 371 43,569
MULTIMEDIA 2.10%
Time-Warner, Inc. ...................... 400 28,000
PAPER PRODUCTS 0.80%
International Paper Co. ................ 200 10,663
PETROLEUM REFINING 5.30%
British Petroleum Amoco plc, ADR ....... 90 10,187
Exxon Co. .............................. 200 16,612
Mobil Co. .............................. 100 10,475
Phillips Petroleum Co. ................. 185 9,366
Schlumberger Ltd. ...................... 200 12,775
Shell Transport & Trading Company, ADR . 250 11,359
---------
70,774
PHARMACEUTICALS 9.71%
Amgen, Inc. ............................ 520 31,948<F1>
Bristol-Myers Squibb Co. ............... 200 12,712
Eli Lilly & Co. ........................ 100 7,362
Merck & Co., Inc. ...................... 350 24,588
Pfizer, Inc. ........................... 200 23,013
Schering-Plough Co. .................... 200 9,662
Warner-Lambert Co. ..................... 300 20,381
---------
129,666
30
<PAGE>
GLOBAL BLUE CHIP FUND
- --------------------------------------------------------------------------------
PORTFOLIO OF INVESTMENTS APRIL 30, 1999
- --------------------------------------------------------------------------------
COMMON STOCKS SHARES VALUE
RECRUITING & PLACEMENT AGENCY 0.71%
Adecco SA, ADR ......................... 150 $ 9,413
RESTAURANTS 0.63%
McDonald's Corp. ....................... 200 8,475
RETAIL 5.81%
Gap, Inc. .............................. 302 20,102
Ito-Yokado Co., Ltd., ADR .............. 285 17,545
Koninklijke Ahold NV, ADR .............. 450 16,931
Wal-Mart Stores, Inc. .................. 500 23,000
---------
77,578
TELECOMMUNICATIONS 18.42%
AT&T Co. ............................... 480 24,240
Cable & Wireless plc, ADR .............. 500 21,000
COLT Telecom Group plc, ADR ............ 200 15,275<F1>
Deutsche Telekom AG, ADR ............... 500 19,375
Hellenic Telecommunications
Organization SA, ADR ................. 2,000 23,875<F1>
MCI Worldcom, Inc. ..................... 300 24,656<F1>
Nokia Oyj, ADR ......................... 400 29,675
Northern Telecom Ltd. .................. 390 26,593
Telecom Italia SpA, ADR ................ 240 25,485
Vodafone Group plc, ADR ................ 200 35,875
---------
246,049
WASTE DISPOSAL 1.69%
Waste Management, Inc. ................. 400 22,600
TOTAL COMMON STOCKS .................... 1,286,047
(cost $1,183,634)
31
<PAGE>
GLOBAL BLUE CHIP FUND
- --------------------------------------------------------------------------------
PORTFOLIO OF INVESTMENTS APRIL 30, 1999
- --------------------------------------------------------------------------------
PRINCIPAL
REPURCHASE AGREEMENTS 7.87% AMOUNT VALUE
- ----------------------------------------- -------- ----------
Joint Tri-Party Repurchase Agreement,
Donaldson, Lufkin & Jenrette, 4/30/99,
4.88%, due 5/3/99, repurchase price
$105,145, collateralized by U.S.
Treasury securities held in a joint
tri-party repurchase account (cost
$105,102) $105,102 $ 105,102
-------- ----------
TOTAL INVESTMENTS 104.17% 1,391,149
(cost $1,288,736)
Other assets and liabilities, net (4.17)% (55,702)
----------
NET ASSETS 100% $1,335,447
----------
ADR - American Depository Receipt
RS - Restricted Security, See Note 1A
<F1> Non-income producing security
See accompanying notes to portfolios of investments.
32
<PAGE>
REGENT EASTERN EUROPEAN FUND
- --------------------------------------------------------------------------------
PORTFOLIO OF INVESTMENTS APRIL 30, 1999
- --------------------------------------------------------------------------------
COMMON AND PREFERRED STOCKS 77.52% SHARES VALUE
AUTOMOTIVE 0.04%
KamAZ .................................. 25,000 $ 2,550<F1>
CHEMICALS 5.30%
BorsodChem Rt., GDR .................... 12,552 301,248
COMMERCIAL BANKS 8.87%
Bank Handlowy W. Warszawie ............. 10,650 126,879<F1>
OTP Bank, GDR .......................... 4,777 203,500
OTP Bank, Preferred Stock .............. 3,503 73,611
Powszechny Bank Kredytowy .............. 974 17,861
SKB Banka, GDR ......................... 6,225 82,170
---------
504,021
COMMUNICATIONS 6.35%
Magyar Tavkozlesi Rt., ADR ............. 10,114 284,456
Rostelekom ............................. 109,900 76,381
---------
360,837
COMPUTERS & DATA PROCESSING 2.22%
Softbank SA, GDR ....................... 3,861 126,448
CONGLOMERATES 7.10%
Elektrim Spolka Akcyjna ................ 33,922 403,272
CONSTRUCTION 4.65%
Budimex SA ............................. 51,200 264,191<F1>
ELECTRIC SERVICES 2.23%
Irkutskenergo .......................... 824,279 44,511<F1>
Irkutskenergo, ADR ..................... 14,090 36,986
Unified Energy Systems ................. 910,285 45,514
---------
127,011
GLASS & GLASSWARE 0.26%
Krosnienskie Huty Szkla Kros ........... 2,706 14,853
INVESTMENT COMPANIES 5.97%
Central European Growth Fund ........... 440,000 295,500<F1>
NFI Foksal SA .......................... 11,792 13,273<F1>
NFI Fortuna SA ......................... 11,822 15,101<F1>
NFI V Victoria SA ...................... 11,792 15,361<F1>
---------
339,235
33
<PAGE>
REGENT EASTERN EUROPEAN FUND
- --------------------------------------------------------------------------------
PORTFOLIO OF INVESTMENTS April 30, 1999
- --------------------------------------------------------------------------------
COMMON AND PREFERRED STOCKS SHARES VALUE
MANUFACTURING 3.01%
Graboplast Rt .......................... 4,076 $ 27,202
Graboplast Rt., GDR .................... 33,890 38,126
Mostostal-Export ....................... 82,764 105,719
---------
171,047
METALS MINING 11.34%
Ashurst Technology Ltd., Units ......... 93,470 0<F1>
KGHM Polska Miedz ...................... 51,998 331,440
KGHM Polska Miedz, GDR ................. 24,535 312,821
---------
644,261
OIL & GAS EXTRACTION 13.02%
MOL Magyar Olaj-es Gazipari Rt ......... 11,000 245,090
MOL Magyar Olaj-es Gazipari Rt., GDR ... 15,948 358,830
Primagaz Hungaria Co., Ltd. ............ 13,270 136,203
---------
740,123
PHARMACEUTICALS 7.16%
EGIS Pharmaceuticals Ltd. .............. 6,542 132,636
Pliva .................................. 17,320 274,522
---------
407,158
TOTAL COMMON AND PREFERRED STOCKS ...... 4,406,255
(cost $5,940,432)
PRINCIPAL
REPURCHASE AGREEMENT 23.13% AMOUNT
- ----------------------------------------- ---------- ----------
Joint Tri-Party Repurchase Agreement,
Donaldson, Lufkin & Jenrette, 4/30/99,
4.88%, due 5/3/99, repurchase price
$1,315,370, collateralized by U.S.
Treasury securities held in a joint
tri-party repurchase account (cost
$1,314,835) $1,314,835 1,314,835
---------- ---------
TOTAL INVESTMENTS 100.65% 5,721,090
(cost $7,255,267)
Other assets and liabilities, net (0.65)% (37,304)
----------
NET ASSETS 100% $5,683,786
----------
ADR - American Depository Receipt
GDR - Global Depository Receipt
<F1> Non-income producing security
See accompanying notes to portfolios of investments.
34
<PAGE>
- --------------------------------------------------------------------------------
NOTES TO PORTFOLIOS OF INVESTMENTS APRIL 30, 1999
- --------------------------------------------------------------------------------
GLOBAL PORTFOLIO SECURITIES BY COUNTRY
PERCENTAGE OF
COUNTRY VALUE TOTAL INVESTMENTS
---------------------------------------- --------- -----------------
GLOBAL BLUE CHIP FUND
---------------------
United States .......................... $ 908,412 65.30%
United Kingdom ......................... 116,759 8.39
Germany ................................ 44,904 3.23
Japan .................................. 36,045 2.59
Finland ................................ 29,675 2.13
Canada ................................. 26,593 1.91
Italy .................................. 25,485 1.83
Greece ................................. 23,875 1.72
France ................................. 22,930 1.65
Netherlands ............................ 16,931 1.22
Netherland - Antilles .................. 12,775 0.92
South Africa ........................... 12,250 0.88
Switzerland ............................ 9,413 0.68
United States - Repurchase
Agreements ............................ 105,102 7.55
TOTAL INVESTMENTS ...................... $1,391,149 100.00%
---------- ------
REGENT EASTERN EUROPEAN FUND
----------------------------
Hungary ................................ $1,800,903 31.48%
Poland ................................. 1,747,218 30.54
United Kingdom ......................... 295,500 5.16
Russia ................................. 288,112 5.04
Croatia ................................ 274,522 4.80
United States - Repurchase
Agreements ............................ 1,314,835 22.98
TOTAL INVESTMENTS ...................... $5,721,090 100.00%
---------- ------
JOINT TRI-PARTY REPURCHASE AGREEMENTS (SEE ALSO NOTE 1 TO FINANCIAL STATEMENTS.)
The terms of the repurchase agreements and the securities held as collateral in
the tri-party joint repurchase agreements at April 30, 1999 were:
Donaldson, Lufkin & Jenrette repurchase agreement, 4/30/99, 4.88%, due 5/3/99
(with a market value of $99,720,083)
$97,201,000 U.S. Treasury Bond, 0.00%, 8/15/14
$81,878,000 U.S. Treasury Bond, 0.00%, 5/15/19
$70,752,000 U.S. Treasury Bond, 0.00%, 8/15/12
$7,949,000 U.S. Treasury Bond, 0.00%, 3/15/13
Total principal amount: $99,719,846; Total repurchase value: $99,760,399
Other mutual funds managed by U.S. Global Investors, Inc. participate in the
tri-party joint repurchase agreements.
Each owns an undivided interest in the accounts.
35
<PAGE>
- --------------------------------------------------------------------------------
STATEMENTS OF ASSETS AND LIABILITIES APRIL 30, 1999
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
BONNEL MEGATRENDS GLOBAL BLUE REGENT EASTERN
GROWTH FUND FUND CHIP FUND EUROPEAN FUND
------------- ----------- ---------- ----------
<S> <C> <C> <C> <C>
INVESTMENTS, AT IDENTIFIED COST .... $ 102,240,704 $16,374,775 $1,288,736 $7,255,267
============= =========== ========== ==========
ASSETS
Investments, at value:
Securities ..................... $ 98,192,406 $17,699,393 $1,286,047 $4,406,255
Repurchase agreement ........... 12,088,883 1,798,678 105,102 1,314,835
Cash ............................... 951,344 -- -- 277,856
Receivables:
Investments sold ............... 14,676,556 1,811,476 148,852 1,863,169
Capital shares sold ............ 64,563 970 24 9,887
Dividends ...................... 10,490 20,028 1,844 478
Interest ....................... 4,916 732 43 375
Other assets ....................... 9,912 2,712 12,895 16,949
TOTAL ASSETS ....................... 125,999,070 21,333,989 1,554,807 7,889,804
------------- ---------- --------- ---------
LIABILITIES
Payables:
Investments purchased .......... 16,278,725 1,798,678 171,263 2,146,145
Capital shares redeemed ........ 282,376 16,025 3,057 6,005
To manager and affiliates ...... 99,082 17,012 1,307 5,482
Accounts payable and
accrued expenses ............. 90,323 39,924 43,733 48,386
TOTAL LIABILITIES .................. 16,750,506 1,871,639 219,360 2,206,018
------------- --------- ------- ---------
NET ASSETS ......................... $ 109,248,564 $19,462,350 $1,335,447 $5,683,786
============= =========== ========== ==========
NET ASSETS CONSIST OF:
Paid in capital .................... $ 77,218,060 $16,388,359 $2,439,804 $7,911,788
Undistributed net investment
income (loss) .................... (716,145) (8,395) (101,959) (99,792)
Accumulated net realized gain (loss)
on investments and foreign
currencies ....................... 24,706,064 (40,910) (1,104,810) (594,376)
Net unrealized appreciation
(depreciation) of investments
and other assets and liabilities
denominated in foreign
currencies ....................... 8,040,585 3,123,296 102,412 (1,533,834)
------------- ----------- ---------- ----------
Net assets applicable to capital
shares outstanding ............... $ 109,248,564 $19,462,350 $1,335,447 $5,683,786
============= =========== ========== ==========
Capital shares outstanding, and
unlimited number of no par
shares authorized ............ 5,309,530 1,796,988 200,472 640,358
============= =========== ========== ==========
NET ASSET VALUE, PER SHARE ......... $ 20.58 $ 10.83 $ 6.66 $ 8.88
============= =========== ========== ==========
</TABLE>
See accompanying notes to financial statements.
36 AND 37
<PAGE>
- --------------------------------------------------------------------------------
STATEMENTS OF OPERATIONS FOR THE SIX MONTHS ENDED APRIL 30, 1999
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
BONNEL GROWTH MEGATRENDS GLOBAL BLUE REGENT EASTERN
FUND FUND CHIP FUND EUROPEAN FUND
------------ ---------- --------- ---------
NET INVESTMENT INCOME
INCOME:
<S> <C> <C> <C> <C>
Dividends ....................... $ 123,359 $ 147,892 $ 6,877 $ 2,912
Foreign taxes withheld
on dividends ................... -- (754) (190) (611)
------------ ---------- --------- ---------
Net dividends ............... 123,359 147,138 6,687 2,301
Interest and other .............. 79,352 76,512 4,388 42,236
------------ ---------- --------- ---------
TOTAL INCOME ................ 202,711 223,650 11,075 44,537
EXPENSES:
Management fee .................. 524,178 101,919 9,132 35,190
Transfer agent fees
and expenses .................. 115,864 26,236 6,625 20,589
Accounting service
fees and expenses ............. 21,366 20,550 21,223 19,608
Legal and professional fees ..... 41,539 28,009 33,268 18,311
Distribution plan expenses ...... 131,045 25,480 1,827 7,038
Custodian fees .................. 18,399 7,589 17,564 20,111
Shareholder reporting ........... 27,403 6,735 1,900 3,748
Registration fees ............... 13,023 5,275 6,588 7,906
Trustee fees and expenses ....... 4,666 6,098 11,790 7,448
Miscellaneous ................... 22,472 4,154 4,639 4,716
------------ ---------- --------- ---------
Total expenses before
reductions .................... 919,955 232,045 114,556 144,665
Short-term trading fee .......... (1,099) -- -- --
Expenses offset ................. -- -- (23) (336)
Expenses reimbursed ............. -- -- -- --
------------ ---------- --------- ---------
NET EXPENSES ................ 918,856 232,045 114,533 144,329
============ ========== ========= =========
NET INVESTMENT INCOME (LOSS) ........ (716,145) (8,395) (103,458) (99,792)
============ ========== ========= =========
NET REALIZED AND UNREALIZED
GAIN (LOSS) ON INVESTMENTS
Realized gain (loss) from:
Securities .................. 26,704,590 (38,124) 45,084 (219,218)
Foreign currency transactions -- -- 96 (297)
------------ ---------- --------- ---------
NET REALIZED GAIN (LOSS) .... 26,704,590 (38,124) 45,180 (219,515)
------------ ---------- --------- ---------
Net change in unrealized
appreciation (depreciation) of:
Investments ................. 1,290,124 2,657,260 199,808 884,603
Other assets and liabilities
denominated in foreign
currencies ................ -- -- (1,003) 332
------------ ---------- --------- ---------
NET UNREALIZED APPRECIATION . 1,290,124 2,657,260 198,805 884,935
------------ ---------- --------- ---------
NET REALIZED AND UNREALIZED
GAIN ON INVESTMENTS ................. 27,994,714 2,619,136 243,985 665,420
------------ ---------- --------- ---------
NET INCREASE IN NET
ASSETS RESULTING FROM OPERATIONS .... $ 27,278,569 $2,610,741 $ 140,527 $ 565,628
============ ========== ========= =========
</TABLE>
See accompanying notes to financial statements.
38 AND 39
<PAGE>
- --------------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
BONNEL GROWTH FUND MEGA TRENDS FUND
--------------------------------- ---------------------------------------
SIX MONTHS ENDED YEAR ENDED SIX MONTHS ENDED YEAR ENDED
APRIL 30, 1999 OCTOBER 31, 1998 APRIL 30, 1999 OCTOBER 31, 1998
------------- ------------- ----------- -----------
<S> <C> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS
FROM INVESTMENT OPERATIONS:
Net investment income (loss) $ (716,145) $ (1,214,899) $ (8,395) $ (33,041)
Net realized gain (loss) .... 26,704,590 2,500,611 (38,124) 3,311,828
Net unrealized appreciation
(depreciation) ............ 1,290,124 557,231 2,657,260 (4,265,251)
------------- ------------- --------- ----------
NET INCREASE (DECREASE) IN
NET ASSETS FROM INVESTMENT
OPERATIONS ................ 27,278,569 1,842,943 2,610,741 (986,464)
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income .. -- -- -- --
In excess of net investment
income ................... -- -- -- (19,609)
From net capital gains ...... (3,150,077) (19,869,076) (3,268,120) (3,583,127)
In excess of net
capital gains ............. -- -- -- --
------------- ------------- ----------- -----------
TOTAL DISTRIBUTIONS TO
SHAREHOLDERS .............. (3,150,077) (19,869,076) (3,268,120) (3,602,736)
FROM CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold ... 20,611,523 41,181,987 776,326 2,367,612
Distributions reinvested .... 3,037,219 19,029,963 3,186,923 3,496,527
Paid-in capital portion of
short-term trading fee .... 15,279 35,700 248 2,685
------------- ------------- ----------- -----------
23,664,021 60,247,650 3,963,497 5,866,824
Cost of shares redeemed ..... (26,294,925) (59,113,926) (4,583,301) (6,030,092)
------------- ------------- ----------- -----------
NET INCREASE (DECREASE)
IN NET ASSETS FROM CAPITAL
SHARE TRANSACTIONS ........ (2,630,904) 1,133,724 (619,804) (163,268)
NET INCREASE (DECREASE) IN
NET ASSETS .................... 21,497,588 (16,892,409) (1,277,183) (4,752,468)
============= ============= ========== ==========
NET ASSETS
Beginning of period ............. 87,750,976 104,643,385 20,739,533 25,492,001
END OF PERIOD ................... $ 109,248,564 $ 87,750,976 $19,462,350 $20,739,533
Undistributed net investment
income, end of period ......... $ (716,145) $ -- $ (8,395) $ --
============= ============= =========== ===========
CAPITAL SHARE ACTIVITY
Shares sold ................. 1,067,361 2,421,759 72,340 188,788
Shares reinvested ........... 177,511 1,148,488 328,888 294,817
Shares redeemed ............. (1,359,464) (3,462,041) (432,158) (489,698)
------------- ------------- ----------- -----------
NET SHARE ACTIVITY ........ (114,592) 108,206 (30,930) (6,093)
============= ============= =========== ===========
<CAPTION>
REGENT EASTERN
GLOBAL BLUE CHIP FUND EUROPEAN FUND
--------------------------------------- ---------------------------------------
SIX MONTHS ENDED YEAR ENDED SIX MONTHS ENDED YEAR ENDED
APRIL 30, 1999 OCTOBER 31, 1998 APRIL 30, 1999 OCTOBER 31, 1998
---------- ----------- ---------- -----------
<S> <C> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS
FROM INVESTMENT OPERATIONS:
Net investment income (loss) $ (103,458) $ (111,258) $ (99,792) $ (188,763)
Net realized gain (loss) .... 45,180 (1,166,647) (219,515) (388,310)
Net unrealized appreciation
(depreciation) ............ 198,805 245,438 884,935 (1,942,918)
---------- ----------- ---------- -----------
NET INCREASE (DECREASE) IN
NET ASSETS FROM INVESTMENT
OPERATIONS ................ 140,527 (1,032,467) 565,628 (2,519,991)
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income .. -- -- -- --
In excess of net investment
income ................... -- (50,314) -- (6,642)
From net capital gains ...... -- -- -- --
In excess of net
capital gains ............. -- -- -- (40,682)
---------- ----------- ---------- -----------
TOTAL DISTRIBUTIONS TO
SHAREHOLDERS .............. -- (50,314) -- (47,324)
FROM CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold ... 308,994 785,849 843,953 4,605,933
Distributions reinvested .... -- 48,478 -- 36,357
Paid-in capital portion of
short-term trading fee .... 512 1,216 7,792 37,949
---------- ----------- ---------- -----------
309,506 835,543 851,745 4,680,239
Cost of shares redeemed ..... (687,749) (1,605,513) (1,409,710) (5,215,039)
---------- ----------- ---------- -----------
NET INCREASE (DECREASE)
IN NET ASSETS FROM CAPITAL
SHARE TRANSACTIONS ........ (378,243) (769,970) (557,965) (534,800)
NET INCREASE (DECREASE) IN
NET ASSETS .................... (237,716) (1,852,751) 7,663 (3,102,115)
========== =========== ========== ===========
NET ASSETS
Beginning of period ............. 1,573,163 3,425,914 5,676,123 8,778,238
END OF PERIOD ................... $1,335,447 $ 1,573,163 $5,683,786 $ 5,676,123
Undistributed net investment
income, end of period ......... $ (101,959) $ 1,499 $ (99,792) $ --
========== =========== ========== ===========
CAPITAL SHARE ACTIVITY
Shares sold ................. 46,467 100,488 101,980 443,625
Shares reinvested ........... -- 5,941 -- 3,252
Shares redeemed ............. (105,288) (229,537) (169,476) (523,317)
---------- ----------- ---------- -----------
NET SHARE ACTIVITY ........ (58,821) (123,108) (67,496) (76,440)
========== =========== ========== ===========
</TABLE>
See accompanying notes to financial statements.
40 through 42
<PAGE>
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS APRIL 30, 1999
- --------------------------------------------------------------------------------
NOTE 1: SIGNIFICANT ACCOUNTING POLICIES
U.S. Global Accolade Funds (Trust), consisting of four separate funds (Funds),
is organized as a Massachusetts business trust. Each fund is a diversified,
open-end management investment company registered under the Investment Company
Act of 1940, as amended.
During 1997, Bonnel Growth Fund and MegaTrends Fund changed their fiscal year
ends from September 30 and June 30, respectively, to October 31. These changes
resulted in a reporting period of one month for Bonnel Growth Fund and four
months for MegaTrends Fund, both ended October 31, 1997. Global Blue Chip Fund,
formerly named Adrian Day Global Opportunity Fund through September 30, 1998,
commenced operations on February 20, 1997, and Regent Eastern European Fund
commenced operations on March 31, 1997.
Effective November 18, 1996, MegaTrends Fund was reorganized as a fund of the
Trust. The reorganization was a tax-free exchange, where shareholders received
one share of MegaTrends Fund for each share of 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 or using quotes provided by principal market makers. Short-term
investments with effective maturities of sixty days or less at the date of
purchase are valued at amortized cost, which approximates market value.
Securities for which market quotations are not readily available are valued at
their fair value as determined in good faith under consistently applied
procedures under the general supervision of the board of trustees. The trustees
valued the restricted security in Global Blue Chip Fund on April 30, 1999, at
$0 representing 0% 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
43
<PAGE>
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS APRIL 30, 1999
- --------------------------------------------------------------------------------
accrual basis. Investment income is recorded net of foreign taxes withheld
where recovery of such taxes is uncertain.
The Funds may purchase securities on a when-issued or delayed-delivery basis
and segregate on their books collateral with a value at least equal to the
amount of the commitment. Losses may arise due to the changes in the value of
the underlying securities or if the counterparty does not perform under the
contract.
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 tri-party repurchase
agreements 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 prevailing
exchange rate. Security transactions, income and expenses are converted at the
prevailing rate of exchange on the respective dates of the transactions. 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 to manage their exposure
to stock or commodity markets as well as fluctuations in interest and currency
conversion rates. Written options include a risk of loss in excess of the
option premium. The use of options carries the risks of a change in value of
the underlying instruments, an illiquid secondary market, or failure of the
counterparty to perform its obligations. 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. There was no activity
in options written or purchased for the six months ended April 30, 1999.
F. INCOME TAXES
The Funds intend to continue to comply with the requirements of the Internal
Revenue Code applicable to regulated investment companies and to distribute
44
<PAGE>
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS APRIL 30, 1999
- --------------------------------------------------------------------------------
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 on 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 related to permanent book and tax basis differences
are made within the Funds' capital accounts to reflect 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 costs; any excess of short-term trading fees is then
credited as paid-in capital. Expense offset arrangements have been made with
the Funds' custodian so the custodian fees may be 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. (Adviser), under an investment advisory agreement
with the Trust in effect through March 8, 2000, 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 Adviser also furnishes all necessary office
facilities, business equipment and personnel for administering the affairs of
the Trust. Frank E. Holmes, a trustee of the Funds, is the controlling owner of
the Adviser.
45
<PAGE>
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS APRIL 30, 1999
- --------------------------------------------------------------------------------
For each Fund, the Adviser has contracted with and compensates sub- advisers to
serve in the execution of the Adviser's investment responsibilities as follows:
Bonnel Growth Fund Bonnel, Inc.
MegaTrends Fund Money Growth Institute, Inc.
Global Blue Chip Fund Global Strategic Management, Inc.<F1>
Regent Eastern European Fund Regent Fund Management, Ltd.
<F1> Effective October 1, 1998, this sub-advisory agreement was
terminated and the Adviser assumed investment responsibilities.
For the services of the Adviser, each Fund pays a management fee at an annual
rate of 1.00% for Bonnel Growth Fund and MegaTrends Fund and 1.25% for Global
Blue Chip Fund and Regent Eastern European Fund based on their average net
assets. Fees are accrued daily and paid monthly.
United Shareholder Services, Inc. (USSI), a wholly-owned subsidiary of the
Adviser, is transfer 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. Additionally, the Adviser is reimbursed at cost
for in-house legal services pertaining to each Fund. Effective November 1, 1997,
the Funds engaged Brown Brothers Harriman & Co. as the custodian, fund
accounting and administration service agent with a fee structure based on
average net assets of the Funds.
Each Fund has adopted a distribution plan pursuant to Rule 12b-1 of the
Investment Company Act of 1940 that allows an annual fee of up to .25% of its
average net assets to be used for, or to reimburse the Adviser for, expenditures
in connection with sales and promotional services related to the distribution of
each Fund's shares. A portion of this fee may be reallowed to securities
dealers, banks and other financial institutions for the distribution of shares
and providing shareholder support services.
Brimberg & Co., L.P., and Leeb Brokerage Services, broker/dealer affiliates of
Money Growth Institute, Inc., received $180 and $1,320, representing 0.5% and
4%, respectively, of commissions paid by MegaTrends Fund on purchases and sales
of securities during the six months ended April 30, 1999.
During the six months ended April 30, 1999, A & B Mailers, Inc., a wholly-owned
subsidiary of the Adviser, was paid $28,067 for mailing services provided to the
Funds.
46
<PAGE>
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS APRIL 30, 1999
- --------------------------------------------------------------------------------
NOTE 3: INVESTMENTS
Purchases and sales of long-term securities for the six months ended April 30,
1999, are summarized as follows:
FUND PURCHASES SALES
----------------------------- ------------ ------------
BONNEL GROWTH ............... $104,427,383 $122,067,019
MEGATRENDS .................. 6,768,498 12,367,462
GLOBAL BLUE CHIP ............ 1,197,254 957,198
REGENT EASTERN EUROPEAN ..... 1,103,738 1,137,126
The following table presents the income tax basis of securities owned on April
30, 1999, and the tax basis components of net unrealized appreciation or
depreciation:
GROSS GROSS NET UNREALIZED
AGGREGATE UNREALIZED UNREALIZED APPRECIATION
FUND COST APPRECIATION DEPRECIATION (DEPRECIATION)
- ------------------ ------------ ----------- ---------- -----------
BONNEL GROWTH ..... $102,240,704 $10,446,873 $2,406,288 $ 8,040,585
MEGATRENDS ........ 16,374,775 3,777,345 654,049 3,123,296
GLOBAL BLUE CHIP .. 1,288,736 230,890 128,478 102,412
REGENT EASTERN
EUROPEAN ........ 7,255,267 559,078 2,092,912 (1,533,834)
At April 30, 1999, Regent Eastern European Fund and Global Blue Chip Fund had
capital loss carryovers of $374,861 and $1,149,990, respectively, each with an
expiration date of October 31, 2006.
Regent Eastern European Fund may be exposed to risks 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
conditions and the possible imposition of adverse governmental laws or currency
exchange restrictions.
NOTE 4: REVOLVING DEMAND NOTES
From November 6, 1997 to February 28, 1999, each of the Funds entered into
revolving demand notes with Brown Brothers Harriman & Co. as denoted below
subject to the borrowing limits as set forth in the Funds' registration
statement. These notes are collateralized by any or all of the securities held
by Brown Brothers Harriman & Co. as the Funds' custodian. Borrowing under these
notes will be charged interest at the current overnight Federal Funds Rate plus
1.75%. Each fund has $5,000,000 available under the revolving demand notes.
47
<PAGE>
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS APRIL 30, 1999
- --------------------------------------------------------------------------------
The U.S. Global Accolade Funds, along with other Funds under common management,
participate in an $85 million revolving credit facility (Facility) dated March
1, 1999. The Facility is intended to provide short-term financing if necessary,
subject to certain restrictions in connection with abnormal redemption activity.
Commitment fees related to the Facility are paid by the participating Funds.
Borrowings under these notes will be charged interest at the current overnight
Federal Funds Rate plus 2.00%. There were no borrowings under the outstanding
Facility as of April 30, 1999.
NOTE 5: SHARES OF BENEFICIAL INTEREST
At April 30, 1999, individual shareholders holding 5% or more of outstanding
shares comprised 7.47% of Global Blue Chip Fund held by U.S. Global Investors,
Inc., and 11.54% of Regent Eastern European Fund including 6.32% held by an
affiliate of its sub-adviser.
NOTE 6: SUBSEQUENT EVENTS
The board of trustees for the U.S. Global Accolade Funds approved the
termination of the Global Blue Chip Fund, subject to shareholder approval. A
shareholder meeting will be held on July 16, 1999, to approve the termination of
the Fund.
48
<PAGE>
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS APRIL 30, 1999
- --------------------------------------------------------------------------------
BONNEL GROWTH FUND
<TABLE>
<CAPTION>
FOR A CAPITAL SHARE OUTSTANDING DURING THE:
SIX MONTHS YEAR PERIOD
ENDED ENDED ENDED YEAR ENDED SEPTEMBER 30,
APRIL 30, OCT. 31, OCT. 31, -----------------------------
1999 1998 1997<F1> 1997 1996 1995<F2>
-------- ------- -------- -------- ------- -------
<S> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING
OF PERIOD $16.18 $19.68 $21.86 $17.15 $14.81 $10.02
Investment Activities
Net investment income
(loss) (.13) (.23) (.03) (.21) (.14) (.07)
Net realized and
unrealized gain (loss) 5.11 .44 (2.15) 5.09 3.13 4.91
-------- ------- -------- -------- ------- -------
Total from investment
activities 4.98 .21 (2.18) 4.88 2.99 4.84
-------- ------- -------- -------- ------- -------
Distributions
From net investment
income -- -- -- -- -- (.05)
From net realized gains (.58) (3.71) -- (.17) -- --
In excess of net realized
gains -- -- -- -- (.65) --
-------- ------- -------- -------- ------- -------
Total distributions (.58) (3.71) -- (.17) (.65) (.05)
NET ASSET VALUE,END OF
PERIOD $20.58 $16.18 $19.68 $21.86 $17.15 $14.81
TOTAL RETURN
(excluding account fees)<F3> 31.52% .80% (9.97)% 28.67% 21.27% 48.74%
Ratios to Average Net
Assets <F4>:
Net investment income
(loss) (1.37)% (1.19)% (1.43)% (1.18)% (1.32)% (1.46)%
Expenses 1.76% 1.85% 1.72% 1.77% 1.83% 2.50%
Expenses after fee
reimbursements and
expense reductions 1.76% 1.84% 1.72% 1.77% 1.83% 2.48%
Portfolio turnover rate 204% 190% 52% 239% 212% 145%
Net assets, end of period
(in thousands) $109,249 $87,751 $104,643 $117,891 $90,696 $24,673
<F1> For the month ended October 31, 1997.
<F2> From October 17, 1994, commencement of operations.
<F3> Total returns for period less than one year are not annualized.
<F4> 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.
</TABLE>
49
<PAGE>
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
MEGATRENDS FUND
<TABLE>
<CAPTION>
FOR A CAPITAL SHARE OUTSTANDING DURING THE:
SIX MONTHS YEAR PERIOD
ENDED ENDED ENDED YEAR ENDED JUNE 30,
APRIL 30, OCT. 31, OCT. 31, ---------------------------------------
1999 1998 1997<F1> 1997<F2> 1996 1995 1994
------- ------- ------- ------- ------- ------- -------
<S> <C> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE,
BEGINNING OF PERIOD $11.35 $13.90 $13.45 $11.27 $11.17 $10.29 $10.84
Investment Activities
Net investment
income (loss) -- (.02) .01 .01 .17 .28 .19
Net realized and
unrealized gain
(loss) 1.33 (.51) .44 2.39 1.72 .95 (.35)
------- ------- ------- ------- ------- ------- -------
Total from
investment
activities 1.33 (.53) .45 2.40 1.89 1.23 (.16)
------- ------- ------- ------- ------- ------- -------
Distributions
From net investment
income -- -- -- (.01) (.17) (.28) (.19)
In excess of net
investment income -- (.01) -- -- -- -- --
From net realized
gains (1.85) (2.01) -- (.21) (1.61) -- (.20)
In excess of net
realized gains -- -- -- -- (.01) (.07) --
------- ------- ------- ------- ------- ------- -------
Total distributions (1.85) (2.02) -- (.22) (1.79) (.35) (.39)
NET ASSET VALUE, END
OF PERIOD $10.83 $11.35 $13.90 $13.45 $11.27 $11.17 $10.29
TOTAL RETURN
(excluding account
fees) <F3> 13.59% (4.43)% 3.34% 20.72% 17.10% 12.20% (1.50)%
Ratios to Average Net
Assets <F4>:
Net investment
income (loss) (.08)% (.14)% .23% .09% 1.30% 2.36% 1.65%
Expenses 2.28% 2.06% 1.76% 1.97% 2.10% 1.98% 1.81%
Expenses after fee
reimbursements
and expense
reductions 2.28% 2.06% 1.76% 1.88% 1.50% 1.50% 1.50%
Portfolio turnover
rate 71.00% 51% 13% 62% 115% 163% 143%
Net assets, end of
period (in
thousands) $19,462 $20,740 $25,492 $25,160 $27,945 $32,976 $45,523
<F1> For the four months ended October 31, 1997.
<F2> Effective November 18, 1996, the Fund changed to a new investment
manager.
<F3> Total returns for period less than one year are not annualized.
<F4> 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 financial statements. These amounts would decrease the net
investment income ratio had such reductions not occurred.
</TABLE>
50
<PAGE>
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
GLOBAL BLUE CHIP FUND
FOR A CAPITAL SHARE OUTSTANDING DURING THE:
YEAR ENDED YEAR ENDED
SIX MONTHS ENDED OCT. 31, OCT. 31,
APRIL 30, 1999 1998<F1> 1997<F2>
---------------- ---------- ----------
NET ASSET VALUE, BEGINNING
OF PERIOD ................ $6.07 $8.96 $10.00
Investment Activities
Net investment income
(loss) ................ (.51) (.48) .08
Net realized and
unrealized gain (loss) 1.10 (2.27) (1.12)
------ ------ ------
Total from investment
activities ............ .59 (2.75) (1.04)
------ ------ ------
Distributions
From net investment
income ................ -- -- --
In excess of net
investment income ..... -- (.14) --
From net realized gains .. -- -- --
------ ------ ------
Total distributions ...... -- (.14) --
NET ASSET VALUE, END OF
PERIOD ................... $6.66 $6.07 $8.96
TOTAL RETURN
(excluding account fees)<F3> 9.72% (31.12)% (10.40)%
Ratios to Average Net
Asset<F4>:
Net investment
(loss) ................ (14.19)% (4.02)% 1.71%
Expenses ................. 15.71% 8.74% 5.63%
Expenses after fee
reimbursements and
expense reductions .... 15.71% 7.45% 2.50%
Portfolio turnover rate .... 147% 158% 13%
Net assets, end of
period (in thousands) .... $1,335 $1,573 $3,426
<F1> Effective October 1, 1998, the Fund changed to a new investment manager.
<F2> From February 20, 1997, commencement of operations.
<F3> Total return for periods less than one year are not annualized.
<F4> 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.
51
<PAGE>
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
REGENT EASTERN EUROPEAN FUND
FOR A CAPITAL SHARE OUTSTANDING DURING THE:
YEAR ENDED YEAR ENDED
SIX MONTHS ENDED OCT. 31, OCT. 31,
APRIL 30, 1999 1998 1997<F1>
-------------- ---------- ----------
NET ASSET VALUE, BEGINNING
OF PERIOD ................ $8.02 $11.19 $10.00
Investment Activities
Net investment income
(loss) ................ (.16) (.27) (.01)
Net realized and
unrealized gain (loss) 1.02 (2.84) 1.20
------ ------ ------
Total from investment
activities ............ .86 (3.11) 1.19
------ ------ ------
Distributions
From net investment
income ................ -- -- --
In excess of net
investment income ..... -- (.01) --
From net realized gains .. -- (.05) --
------ ------ ------
Total distributions ...... -- (.06) --
NET ASSET VALUE, END OF
PERIOD ................... $8.88 $8.02 $11.19
TOTAL RETURN
(excluding account fees)<F2> 10.72% (27.96)% 11.90%
Ratios to Average Net
Assets<F3>:
Net investment income
(loss) ................ (3.55)% (2.38)% (.49)%
Expenses ................. 5.15% 5.03% 4.98%
Expenses after fee
reimbursements and
expense reductions .... 5.14% 4.55% 3.25%
Portfolio turnover rate .... 56% 97% 11%
Net assets, end of
period (in thousands) .... $5,684 $5,676 $8,778
<F1> From March 31, 1997, commencement of operations.
<F2> Total return for periods less than one year are not annualized.
<F3> 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.
52
<PAGE>
- --------------------------------------------------------------------------------
NOTICE OF CHANGE IN INDEPENDENT ACCOUNTANTS
- --------------------------------------------------------------------------------
Based on the recommendation of the Audit Committee of U.S. Global Accolade
Funds, the board of trustees has determined not to retain
PricewaterhouseCoopers LLP (PwC) as the fund's independent auditor and voted to
appoint Ernst & Young LLP for the fiscal year ended October 31, 1999. During
the two most recent fiscal years ended October 31, 1998 and October 31, 1997,
PwC's audit reports contained no adverse opinion or disclaimer of opinion; nor
were its reports qualified or modified as to uncertainty, audit scope, or
accounting principle. Further, in connection with its audits for the two most
recent fiscal years ended October 31, 1998 and October 31, 1997 and through
February 26, 1999, there were no disagreements between the funds and PwC on any
matter of accounting principles or practices, financial statement disclosure or
auditing scope or procedure, which if not resolved to the satisfaction of PwC
would have caused it to make reference to the disagreements in its report on
the financial statements for such years.
53
<PAGE>
- --------------------------------------------------------------------------------
NOTES
- --------------------------------------------------------------------------------
<PAGE>
WARNING: THE EDGAR SYSTEM ENCOUNTERED ERROR(S) WHILE PROCESSING THIS SCHEDULE.
<TABLE> <S> <C>
<ARTICLE> 6
<LEGEND>
This Financial Data Schedule contains summary financial information extracted
from the semi-annual report filed on form N-SAR and is qualified in its entirety
by reference to such semi-annual report on Form N-SAR.
</LEGEND>
<SERIES>
<NUMBER> 1
<NAME> BONNEL GROWTH FUND
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> OCT-31-1999
<PERIOD-START> NOV-01-1998
<PERIOD-END> APR-30-1999
<INVESTMENTS-AT-COST> 102,240,704
<INVESTMENTS-AT-VALUE> 110,281,289
<RECEIVABLES> 14,756,525
<ASSETS-OTHER> 961,256
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 125,999,070
<PAYABLE-FOR-SECURITIES> 16,278,725
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 471,781
<TOTAL-LIABILITIES> 16,750,506
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 77,218,060
<SHARES-COMMON-STOCK> 5,309,530
<SHARES-COMMON-PRIOR> 5,424,122
<ACCUMULATED-NII-CURRENT> (716,145)
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 24,706,064
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 8,040,585
<NET-ASSETS> 109,248,564
<DIVIDEND-INCOME> 123,359
<INTEREST-INCOME> 79,322
<OTHER-INCOME> 30
<EXPENSES-NET> 918,856
<NET-INVESTMENT-INCOME> (716,145)
<REALIZED-GAINS-CURRENT> 26,704,590
<APPREC-INCREASE-CURRENT> 1,290,124
<NET-CHANGE-FROM-OPS> 27,278,569
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 0
<DISTRIBUTIONS-OF-GAINS> (3,150,077)
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 20,626,802
<NUMBER-OF-SHARES-REDEEMED> 26,294,925
<SHARES-REINVESTED> 3,037,219
<NET-CHANGE-IN-ASSETS> 21,497,588
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 1,151,551
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 524,178
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 919,955
<AVERAGE-NET-ASSETS> 104,517,968
<PER-SHARE-NAV-BEGIN> 16.18
<PER-SHARE-NII> (0.13)
<PER-SHARE-GAIN-APPREC> 5.11
<PER-SHARE-DIVIDEND> 0.00
<PER-SHARE-DISTRIBUTIONS> (0.58)
<RETURNS-OF-CAPITAL> 0.00
<PER-SHARE-NAV-END> 20.58
<EXPENSE-RATIO> 1.76
[AVG-DEBT-OUTSTANDING] 0
[AVG-DEBT-PER-SHARE] 0.000
</TABLE>
WARNING: THE EDGAR SYSTEM ENCOUNTERED ERROR(S) WHILE PROCESSING THIS SCHEDULE.
<TABLE> <S> <C>
<ARTICLE> 6
<LEGEND>
This Financial Data Schedule contains summary financial information extracted
from the semi-annual report filed on form N-SAR and is qualified in its entirety
by reference to such semi-annual report on Form N-SAR.
</LEGEND>
<SERIES>
<NUMBER> 2
<NAME> MEGATRENDS FUND
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> OCT-31-1999
<PERIOD-START> NOV-01-1998
<PERIOD-END> APR-30-1999
<INVESTMENTS-AT-COST> 16,374,775
<INVESTMENTS-AT-VALUE> 19,498,071
<RECEIVABLES> 1,833,206
<ASSETS-OTHER> 2,712
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 21,333,989
<PAYABLE-FOR-SECURITIES> 1,798,678
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 72,961
<TOTAL-LIABILITIES> 1,871,639
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 16,388,359
<SHARES-COMMON-STOCK> 1,796,988
<SHARES-COMMON-PRIOR> 1,827,918
<ACCUMULATED-NII-CURRENT> (8,395)
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> (40,910)
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 3,123,296
<NET-ASSETS> 19,462,350
<DIVIDEND-INCOME> 147,138
<INTEREST-INCOME> 26,324
<OTHER-INCOME> 50,188
<EXPENSES-NET> 232,045
<NET-INVESTMENT-INCOME> (8,395)
<REALIZED-GAINS-CURRENT> (38,124)
<APPREC-INCREASE-CURRENT> 2,657,260
<NET-CHANGE-FROM-OPS> 2,610,741
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 0
<DISTRIBUTIONS-OF-GAINS> (3,268,120)
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 776,574
<NUMBER-OF-SHARES-REDEEMED> 4,583,301
<SHARES-REINVESTED> 3,186,923
<NET-CHANGE-IN-ASSETS> (1,277,183)
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 3,265,334
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 101,919
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 232,045
<AVERAGE-NET-ASSETS> 20,336,535
<PER-SHARE-NAV-BEGIN> 11.35
<PER-SHARE-NII> 0.00
<PER-SHARE-GAIN-APPREC> 1.33
<PER-SHARE-DIVIDEND> 0.00
<PER-SHARE-DISTRIBUTIONS> (1.85)
<RETURNS-OF-CAPITAL> 0.00
<PER-SHARE-NAV-END> 10.83
<EXPENSE-RATIO> 2.28
[AVG-DEBT-OUTSTANDING] 0
[AVG-DEBT-PER-SHARE] 0.00
</TABLE>
WARNING: THE EDGAR SYSTEM ENCOUNTERED ERROR(S) WHILE PROCESSING THIS SCHEDULE.
<TABLE> <S> <C>
<ARTICLE> 6
<LEGEND>
This Financial Data Schedule contains summary financial information extracted
from the semi-annual report filed on form N-SAR and is qualified in its entirety
by reference to such semi-annual report on Form N-SAR.
</LEGEND>
<SERIES>
<NUMBER> 3
<NAME> GLOBAL BLUE CHIP FUND
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> OCT-31-1999
<PERIOD-START> NOV-01-1998
<PERIOD-END> APR-30-1999
<INVESTMENTS-AT-COST> 1,288,736
<INVESTMENTS-AT-VALUE> 1391,149
<RECEIVABLES> 150,763
<ASSETS-OTHER> 12,895
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 1554,807
<PAYABLE-FOR-SECURITIES> 171,263
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 48,097
<TOTAL-LIABILITIES> 219,360
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 2439,804
<SHARES-COMMON-STOCK> 200,472
<SHARES-COMMON-PRIOR> 259,293
<ACCUMULATED-NII-CURRENT> (101,959)
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> (1104,810)
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 102,412
<NET-ASSETS> 1335,447
<DIVIDEND-INCOME> 6,687
<INTEREST-INCOME> 3,552
<OTHER-INCOME> 836
<EXPENSES-NET> 114,533
<NET-INVESTMENT-INCOME> (103,458)
<REALIZED-GAINS-CURRENT> 45,180
<APPREC-INCREASE-CURRENT> 198,805
<NET-CHANGE-FROM-OPS> 140,527
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 0
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 309,506
<NUMBER-OF-SHARES-REDEEMED> 687,749
<SHARES-REINVESTED> 0
<NET-CHANGE-IN-ASSETS> (237,716)
<ACCUMULATED-NII-PRIOR> 1,499
<ACCUMULATED-GAINS-PRIOR> (1,149,990)
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 9,132
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 114,556
<AVERAGE-NET-ASSETS> 1,458,372
<PER-SHARE-NAV-BEGIN> 6.07
<PER-SHARE-NII> (.51)
<PER-SHARE-GAIN-APPREC> 1.10
<PER-SHARE-DIVIDEND> .00
<PER-SHARE-DISTRIBUTIONS> .00
<RETURNS-OF-CAPITAL> .00
<PER-SHARE-NAV-END> 6.66
<EXPENSE-RATIO> 15.71
[AVG-DEBT-OUTSTANDING] 0
[AVG-DEBT-PER-SHARE] .000
</TABLE>
WARNING: THE EDGAR SYSTEM ENCOUNTERED ERROR(S) WHILE PROCESSING THIS SCHEDULE.
<TABLE> <S> <C>
<ARTICLE> 6
<LEGEND>
This Financial Data Schedule contains summary financial information extracted
from the semi-annual report filed on form N-SAR and is qualified in its entirety
by reference to such semi-annual report on Form N-SAR.
</LEGEND>
<SERIES>
<NUMBER> 4
<NAME> REGENT EASTERN EUROPEAN FUND
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> OCT-31-1999
<PERIOD-START> NOV-01-1998
<PERIOD-END> APR-30-1999
<INVESTMENTS-AT-COST> 7,255,267
<INVESTMENTS-AT-VALUE> 5,721,090
<RECEIVABLES> 1,873,909
<ASSETS-OTHER> 294,805
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 7,889,804
<PAYABLE-FOR-SECURITIES> 2,146,145
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 59,873
<TOTAL-LIABILITIES> 2,206,018
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 7,911,788
<SHARES-COMMON-STOCK> 640,358
<SHARES-COMMON-PRIOR> 707,854
<ACCUMULATED-NII-CURRENT> (99,792)
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> (594,376)
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> (1,533,834)
<NET-ASSETS> 5,683,786
<DIVIDEND-INCOME> 2,301
<INTEREST-INCOME> 41,559
<OTHER-INCOME> 677
<EXPENSES-NET> 144,329
<NET-INVESTMENT-INCOME> (99,792)
<REALIZED-GAINS-CURRENT> (219,515)
<APPREC-INCREASE-CURRENT> 884,935
<NET-CHANGE-FROM-OPS> 565,628
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 0
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 851,745
<NUMBER-OF-SHARES-REDEEMED> 1,409,710
<SHARES-REINVESTED> 0
<NET-CHANGE-IN-ASSETS> 7,663
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> (374,861)
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 35,190
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 144,665
<AVERAGE-NET-ASSETS> 5,614,869
<PER-SHARE-NAV-BEGIN> 8.02
<PER-SHARE-NII> (.16)
<PER-SHARE-GAIN-APPREC> 1.02
<PER-SHARE-DIVIDEND> 0
<PER-SHARE-DISTRIBUTIONS> 0
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 8.88
<EXPENSE-RATIO> 5.14
[AVG-DEBT-OUTSTANDING] 0
[AVG-DEBT-PER-SHARE] 0
</TABLE>
