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<PAGE> PAGE 2
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<PAGE> PAGE 6
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SIGNATURE MAX KATCHER
TITLE EXEC. VICE PRES.
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 6
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1997
<PERIOD-END> DEC-31-1997
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<NET-CHANGE-IN-ASSETS> (911,102)
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</TABLE>
<PAGE>
PROXY STEADMAN ASSOCIATED FUND PROXY
1730 K STREET, N.W., WASHINGTON, D.C. 20006
PROXY FOR SPECIAL MEETING OF SHAREHOLDERS
THIS PROXY IS SOLICITED BY THE BOARD OF TRUSTEES of Steadman Associated
Fund ("the Fund") for use at a special meeting of the shareholders of the fund,
which meeting will be held on Thursday, December 18, 1997, at 10:00 a.m.,
Washington, D.C. time, at the executive offices of the Steadman Security
Corporation located at 1730 K Street, N.W., Washington, D.C. 20006 (the
"Meeting").
The undersigned shareholder of the Fund, revoking any and all previous
proxies heretofore given for shares of the Fund held by the undersigned
("Shares"), does hereby appoint the Board of Trustees, with full power of
substitution to each, to be the attorneys and proxies of the undersigned (the
"Proxies"), to attend the Meeting, and to represent and direct the voting
interest represented by the undersigned as of the record date for the Proposals
specified below.
1. FOR [_] AGAINST [_] ABSTAIN [_] To approve the Agreement and Plan of
Merger dated as of May 2, 1997, as
amended October 16, 1997, by and among
Steadman American Industry Fund,
Steadman Investment Fund, Steadman
Technology and Growth Fund (the
"Merging Funds"), and Steadman
Associated Fund ("SAF") whereby the
Merging Funds will merge into SAF,
which will be renamed Steadman Security
Trust ("SST").
2. FOR [_] AGAINST [_] ABSTAIN [_] To ratify the selection of Reznick
Fedder & Silverman, P.C. to serve as
independent auditors of the Fund for
the current year.
3. Election of Trustees [_] FOR the nominees listed [_] WITHHOLD AUTHORITY
below (except as noted to (to vote for all
the contrary below) nominees listed below)
INSTRUCTION: To withhold authority to vote for any individual nominee, strike a
line through the nominee's name in the list below.
WILLIAM MARK CRAIN RICHARD O. HAASE PAUL E. WAGNER
4. FOR [_] AGAINST [_] ABSTAIN [_] To ratify and confirm the Amended and
Restated Trust Indenture of Steadman
Security Trust dated as of October 16,
1997, which provides, among other
things, for the change of SST's
fundamental investment objective from
primarily capital growth and
secondarily current income to primarily
curent income and secondarily to
maximize total return.
(CONTINUED FROM OTHER SIDE)
This proxy, if properly executed, will be voted in the manner as
directed herein by the undersigned shareholder. Unless otherwise specified below
in the squares provided, signed proxies will be cast "FOR" each Proposal. If no
direction is made for any Proposals, signed proxies will be voted "FOR" any and
all such Proposals. In their discretion, the Proxies are authorized to transact
and vote upon such other matters and business as may come before the Meeting or
any adjournments thereof.
To avoid the expense of adjourning the Meeting to a subsequent date,
please return this proxy in the enclosed self-addressed, postage-paid envelope.
THIS PROXY IS SOLICITED ON BEHALF OF THE BOARD OF TRUSTEES OF STEADMAN
ASSOCIATED FUND, WHICH RECOMMENDED A VOTE FOR THE PROPOSAL.
---
Dated ___________________________, 1997
_______________________________________
Signature of Shareholder
_______________________________________
Signature of Shareholder
This proxy may be revoked by the
shareholder(s) at any time prior to the
special meeting.
NOTE: Please sign exactly as your name
appears hereon. If shares are
registered in more than one name, all
registered shareholders should sign
this proxy; but if one shareholder
signs, this signature binds the other
shareholder. When signing as an
attorney, executor, administrator,
agent, trustee, or guardian, or
custodian for a minor, please give full
title as such. If a corporation, please
sign in full corporate name by an
authorized person. If a partnership,
please sign in partnership name by an
authorized person.
<PAGE>
[LETTERHEAD OF STEADMAN SECURITY CORPORATION APPEARS HERE]
PRESS RELEASE
Contact: Dr. Max Katcher
President
Steadman American Industry Fund
Steadman Associated Fund
Steadman Investment Fund
Steadman Technology and Growth Fund
(202) 223-1000, X12
For Immediate Release
December 18, 1997
SPECIAL MEETINGS OF SHAREHOLDERS OF THE
STEADMAN GROUP OF MUTUAL FUNDS
Washington, D. C. -- December 18, 1997 -- Special Meetings of the Shareholders
of the Steadman Group of Mutual Funds were held today. Since a quorum was not
present at the meetings of Steadman American Industry Fund and Steadman
Technology and Growth Fund, those meetings were adjourned until January 16, 1998
at 10:00 a.m.
The shareholders of Steadman Investment Fund and Steadman Associated Fund
approved the election of Reznick Fedder & Silverman to serve as its independent
auditor for the current year. The shareholders of Steadman Associated Fund also
elected three new trustees, William Mark Crain, Richard O. Haase and Paul F.
Wagner and ratified the Fund's Amended and Restated Trust Indenture, which among
other things changes the Fund's name to Steadman Security Trust and changed the
Fund's fundamental investment objective from primarily capital growth and
secondarily current income to primarily current income and secondarily to
maximize total return.
Steadman Investment Fund and Steadman Associated Fund also adjourned their
meetings until January 16, 1998 at 10:00 a.m. to consider the proposal to
approve the Agreement and Plan of Merger whereby Steadman American Industry
Fund, Steadman Investment Fund and Steadman Technology and Growth Fund will
merge into Steadman Security Trust. The affirmative vote of a majority of the
outstanding shares of each of the funds is required to approve the Merger
Agreement.
Max Katcher, President of each of the Funds said "Even though this is a
holiday period, I am confident that we will obtain a quorum for the American
Industry Fund and the Growth and Technology Fund and that the required votes
will approve the Merger Agreement when the adjourned meetings resume on January
16th."
Each of the Steadman Funds is a common-law business trust organized under the
laws of the District of Columbia. Each of the Steadman Funds is registered as
an open-end investment company under the Investment Company Act of 1940, as
amended. The Steadman Funds are currently seeking shareholder approval for a
merger of the Steadman Funds pursuant to a proxy statement/prospectus dated
October 22, 1997.
<PAGE>
[LETTERHEAD OF STEADMAN SECURITY CORPORATION APPEARS HERE]
PRESS RELEASE
Contact: Dr. Max Katcher
President
Steadman American Industry Fund
Steadman Security Trust
Steadman Investment Fund
Steadman Technology and Growth Fund
For Immediate Release
January 16, 1998
SPECIAL MEETINGS OF SHAREHOLDERS OF THE
STEADMAN GROUP OF MUTUAL FUNDS
Washington, D. C. -- January 16, 1998 -- The Adjourned Special Meetings of
the Shareholders of the Steadman Group of Mutual Funds were held today. Since
necessary quorums were not present at the meetings the meetings of all of the
Funds were adjourned until February 26, 1998 at 10:00 a.m.
Each of the Steadman Funds is a common-law business trust organized under
the laws of the District of Columbia. Each of the Steadman Funds is registered
as an open-end investment company under the Investment Company Act of 1940, as
amended. The Steadman Funds are currently seeking shareholder approval for a
merger of the Steadman Funds pursuant to a proxy statement/prospectus dated
October 22, 1997.
