UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT INVESTMENT COMPANIES
INVESTMENT COMPANY ACT FILE NUMBER 811-1800
U.S. GLOBAL INVESTORS FUNDS
7900 CALLAGHAN ROAD
SAN ANTONIO, TX 78229
(Address of principal executive offices) (Zip code)
SUSAN B. MCGEE, ESQ.
7900 CALLAGHAN ROAD
SAN ANTONIO, TX 78229
(Name and address of agent for service)
Registrant's telephone number, including area code:210-308-1234
Date of fiscal year end: JUNE 30, 2008
Date of reporting period: DECEMBER 31, 2007
ITEM 1. REPORTS TO STOCKHOLDERS.
U.S. GLOBAL INVESTORS FUNDS
SEMI-ANNUAL REPORT
DECEMBER 31, 2007
(UNAUDITED)
TABLE OF CONTENTS
LETTER TO SHAREHOLDERS 1
MANAGEMENT TEAMS' PERSPECTIVES 7
EXPENSE EXAMPLE 43
PORTFOLIOS OF INVESTMENTS 45
NOTES TO PORTFOLIOS OF INVESTMENTS 94
STATEMENTS OF ASSETS AND LIABILITIES 98
STATEMENTS OF OPERATIONS 102
STATEMENTS OF CHANGES IN NET ASSETS 106
NOTES TO FINANCIAL STATEMENTS 112
FINANCIAL HIGHLIGHTS 122
ADDITIONAL INFORMATION 131
NASDAQ SYMBOLS
U.S. GLOBAL INVESTORS FUNDS
- ---------------------------
U.S. TREASURY SECURITIES CASH FUND USTXX
U.S. GOVERNMENT SECURITIES SAVINGS FUND UGSXX
NEAR-TERM TAX FREE FUND NEARX
TAX FREE FUND USUTX
ALL AMERICAN EQUITY FUND GBTFX
CHINA REGION OPPORTUNITY FUND USCOX
GLOBAL RESOURCES FUND PSPFX
WORLD PRECIOUS MINERALS FUND UNWPX
GOLD AND PRECIOUS METALS FUND USERX
U.S. GLOBAL ACCOLADE FUNDS
- --------------------------
HOLMES GROWTH FUND ACBGX
GLOBAL MEGATRENDS FUND MEGAX
EASTERN EUROPEAN FUND EUROX
GLOBAL EMERGING MARKETS FUND GEMFX
[USGI Logo]
P.O. Box 781234
San Antonio, Texas 78278-1234
Tel 1.800.US.FUNDS
Fax 1.210.308.1217
www.usfunds.com
U.S. GLOBAL INVESTORS FUNDS
DEAR SHAREHOLDER
A year ago, many pundits said it was time for
investors to get out of China, that emerging [PHOTO]
markets were overvalued and that oil was more
likely to fall than rise.
2007 turned out to be a good year for contrarians:
Investors who listened to those predictions and
sold their China and natural resources holdings missed a huge
opportunity. And while we expect periods of short-term volatility,
we remain bullish on emerging markets, resources and our domestic
markets for the year ahead. In the face of persistently negative
media, we conducted more than a dozen webcasts to help educate you
on the opportunities and risks of these asset classes.
I'm proud of our performance record across a wide range of funds. I
attribute our success to our disciplined investment culture and
processes that allow us to capture opportunities while managing
risk. Above all else, our job is to take care of our shareholders
and make them feel financially happy and secure that we take our
investment processes very seriously. We strive to be in the top half
of our peer group through execution of these rigorous processes.
At this point, I'd like to say a few words about each fund in the
U.S. Global Investors Funds group.
Our top-performing fund for the year was the China Region
Opportunity Fund (USCOX), which posted a total return of 53.29
percent. The fund ranked No. 20 overall in total return among all
U.S. mutual funds for the one-year period ending December 31, 2007,
according to the Wall Street Journal. More than 6,300 distinct
mutual funds have a one-year track record, according to
Morningstar's Principia database.
China's rise presents an extraordinary opportunity for investors,
and the past year has reaffirmed our long-held belief in its growth
story. The Chinese economy achieved a fifth consecutive year of
double-digit growth, expanding by 11.4 percent. Wealth levels are
rising in this country of 1.3 billion people, and it is planning for
the future via a massive infrastructure build-out that has helped
power a global commodity boom.
1
U.S. GLOBAL INVESTORS FUNDS
TOTAL ANNUALIZED RETURNS AS OF 12/31/07
FUND/TICKER ONE-YEAR THREE-YEAR FIVE-YEAR TEN-YEAR GROSS CAPPED
EXPENSE EXPENSE
RATIO RATIO
China Region Opportunity Fund 53.29% 35.86% 36.44% 11.75% 2.09% n/a
(USCOX)
Global Resources Fund (PSPFX) 39.95% 36.57% 45.95% 18.05% .96% n/a
All American Equity Fund 27.03% 16.37% 16.79% 4.47% 2.13% 1.75%
(GBTFX)
Gross expense ratio as stated in the most recent prospectus. The
Adviser for the All American Equity Fund has contractually limited
total fund operating expenses (as a percentage of net assets) to not
exceed 1.75% (exclusive of acquired fund fees and expenses) through
November 1, 2008, or until such later date as the Adviser
determines. Performance data quoted above is historical. Past
performance is no guarantee of future results. Results reflect the
reinvestment of dividends and other earnings. Current performance
may be higher or lower than the performance data quoted. The
principal value and investment return of an investment will
fluctuate so that your shares, when redeemed, may be worth more or
less than their original cost. Performance does not include the
effect of any direct fees described in the fund's prospectus (e.g.,
short-term trading fees, if applicable, of up to 1.00%) which, if
applicable, would lower your total returns. Obtain performance data
current to the most recent month-end at www.usfunds.com or
1-800-US-FUNDS, option 5. High double-digit returns are
attributable, in part, to unusually favorable market conditions and
may not be repeated or consistently achieved in the future.
Our Global Resources Fund (PSPFX) has benefited from this
commodities boom. Our second-best performer, the fund recorded a
total return of 39.95 percent for the 2007 calendar year. It has
turned in consistently strong performances over the last five years.
The Global Resources Fund ranked No. 7 among all U.S. mutual funds
with an annualized total return of 45.95 percent over the five years
ending December 31, 2007, according to the Wall Street Journal.
Among 814 large-cap core funds, the All American Equity Fund (GBTFX)
ranked No. 2 in total return for the one-year period ending December
31, 2007, according to the Wall Street Journal. It posted a total
return of 27.03 percent for the year - one of its strongest recent
annual performances. 2007 was the third year of President Bush's
final term - historically, the strongest year for the U.S. stock
market. An election year - the fourth and last year of a president's
term - also tends to be positive: Since 1833, the market has posted
an average gain of 6.7 percent in election years. Hopefully, that
trend will serve as a tailwind in 2008.
Crude oil and gold have recently reached record highs, and the price
of copper has tripled in the last several years. While developed
countries are seeing slower growth, we believe that demand drivers
for commodities in emerging markets remain intact. At the same time,
we believe that constraints on the supply of many commodities will
linger for years.
2
U.S. GLOBAL INVESTORS FUNDS
Our precious metals funds benefit from these trends. The World
Precious Minerals Fund (UNWPX) posted a total return of 23.02
percent for the year. Over the last five years, it ranked No. 60 in
total return out of the more than 4,800 distinct U.S. mutual funds
with a five-year record, according to the Wall Street Journal and
Principia.
TOTAL ANNUALIZED RETURNS AS OF 12/31/07
FUND/TICKER ONE-YEAR THREE-YEAR FIVE-YEAR TEN-YEAR GROSS
EXPENSE
RATIO
World Precious Minerals Fund (UNWPX) 23.02% 34.85% 36.66% 15.65% 1.01%
Gold and Precious Metals Fund (USERX) 16.91% 32.60% 29.50% 12.89% 1.33%
Gross expense ratio as stated in the most recent prospectus.
Performance data quoted above is historical. Past performance is no
guarantee of future results. Results reflect the reinvestment of
dividends and other earnings. Current performance may be higher or
lower than the performance data quoted. The principal value and
investment return of an investment will fluctuate so that your
shares, when redeemed, may be worth more or less than their original
cost. Performance does not include the effect of any direct fees
described in the fund's prospectus (e.g., short-term trading fees,
if applicable, of 0.50%) which, if applicable, would lower your
total returns. Obtain performance data current to the most recent
month-end at www.usfunds.com or 1-800-US-FUNDS, option 5. High
double-digit returns are attributable, in part, to unusually
favorable market conditions and may not be repeated or consistently
achieved in the future.
The Gold and Precious Metals Fund (USERX) made a late-year run,
thanks to its strategy of underweighting senior gold companies and
focusing predominantly on mid-tier gold producers, as well as those
senior gold-producing companies with stronger growth prospects.
Not only did our equity funds find success, but we also have a top-
performing municipal bond fund. The Near-Term Tax Free Fund (NEARX)
ranked No. 1 in the short-intermediate municipal debt category for
the one-year period, according to Lipper. The Near-Term Tax Free
Fund ranked #1 of 44, #8 of 32 and #12 of 24 among
short-intermediate municipal debt funds for the 1-, 5- and 10-year
periods ending December 31, 2007. Our Tax Free Fund (USUTX) also
fared well for the year.
In our money market funds, the U.S. Government Securities Savings
Fund (UGSXX) seeks to create current income with the highest level
of safety and liquidity, while the U.S. Treasury Securities Cash
Fund (USTXX) provides an excellent alternative to a traditional
checking account.
3
U.S. GLOBAL INVESTORS FUNDS
TOTAL ANNUALIZED RETURNS AS OF 12/31/07
FUND/TICKER ONE-YEAR THREE-YEAR FIVE-YEAR TEN-YEAR GROSS CAPPED
EXPENSE EXPENSE
RATIO RATIO
Near-Term Tax Free Fund 4.53% 2.79% 2.68% 3.66% 1.77% 0.45%
(NEARX)
Tax Free Fund (USUTX) 3.33% 3.54% 3.28% 4.14% 2.00% 0.70%
U.S. Government Securities 4.70% 3.97% 2.70% 3.48% 0.65% 0.45%
Savings Fund - UGSXX
U.S. Treasury Securities Cash 3.96% 3.36% 2.11% 2.76% 1.09% 1.00%
Fund - USTXX
Gross expense ratio as stated in the most recent prospectus. The
adviser has contractually limited total fund operating expenses to
not exceed 0.70% for the Tax Free Fund, 0.45% for the Near-Term Tax
Free Fund, 0.45% for the Government Securities Savings Fund and
1.00% for the Treasury Securities Cash Fund on an annualized basis
through November 1, 2008, and until such later date as the Adviser
determines. Performance data quoted above is historical. Past
performance is no guarantee of future results. Results reflect the
reinvestment of dividends and other earnings. Current performance
may be higher or lower than the performance data quoted. The
principal value and investment return of an investment will
fluctuate so that your shares, when redeemed, may be worth more or
less than their original cost. Performance does not include the
effect of any direct fees described in the fund's prospectus which,
if applicable, would lower your total returns. Obtain performance
data current to the most recent month-end at www.usfunds.com or
1-800-US-FUNDS, option 5.
One of the primary themes heading into 2008 is volatility, and that
appears unlikely to change anytime soon. At times like these, it can
be helpful to remember the basics. One of the most fundamental
aspects of investing is deciding how much risk you're comfortable
with and which investments fit into your comfort zone.
The greater the volatility of an asset class, the higher its risk
and its potential rewards. Nevertheless, when looking at the
performance of a given investment, certain price movements are
nothing more than noise - just the normal ups and downs of that
investment. That knowledge can help investors manage their
expectations.
Investors can take steps to manage their risk. Limiting how much
exposure a portfolio has to a particular asset class is one such
strategy. And, once investors decide how much exposure they want to
each asset class, they should rebalance their portfolios quarterly
or annually and resist the urge to tamper with their plans.
At U.S. Global Investors, our investment processes depend on two
forms of knowledge as we seek contextual understanding of markets
that are constantly changing.
"Explicit knowledge" is acquired from academic training, technical
analysis of specific companies, and other fact-based learning.
"Tacit knowledge" is created when this explicit knowledge is
combined with the collective experiences of our investment team
members. It is the art of
4
U.S. GLOBAL INVESTORS FUNDS
identifying and interpreting patterns within a body of information
that can help us fine-tune existing investment strategies or become
the basis for a new strategy. We use our processes to make
investment decisions, and we are proud of our performance record
both over the short term and the long term.
A recent example of our processes at work is our identification of
global infrastructure as a key investment theme. We compiled
explicit knowledge -- the number of construction cranes at work in
Dubai, the miles of highway being built in China and the poor grade
given to U.S. roads and bridges by the American Society of Civil
Engineers. To that we added tacit knowledge acquired from the
frequent global travels of our investment team and their insight
into what was really driving their sectors. This led us to realize
that the global infrastructure boom was in essence an intersection
of emerging markets and natural resources, two areas in which we
have considerable experience.
We urge investors not to chase performance - a practice that can be
both emotionally and financially draining. We often suggest that
investors consider a portfolio allocation model similar to the one
recommended by Roger Gibson in his best-selling book "Asset
Allocation: Balancing Financial Risk." Gibson's model calls for
allocating 25 percent of assets to each of four categories: domestic
stocks, international stocks, fixed-income securities and hard
assets.
As you can see, we strive not only to increase the wealth of our
mutual fund investors, but also to provide them with useful
information. I encourage you to explore our website at
www.usfunds.com. There, you will find the collected wisdom of the
investment team in research reports, webcasts and the "Frank Talk"
blog. You also can sign up for the weekly Investor Alert newsletter,
which details and analyzes key markets and sectors.
Thank you for your continued confidence in us. We look forward to
working with you in the year ahead.
Sincerely,
/s/ Frank Holmes
Frank Holmes
CEO and Chief Investment Officer
U.S. Global Investors, Inc.
5
U.S. GLOBAL INVESTORS FUNDS
Please consider carefully the fund's investment objectives, risks,
charges and expenses. For this and other important information,
obtain a fund prospectus by visiting www.usfunds.com or by calling
1-800-US-FUNDS (1-800-873-8637). Read it carefully before investing.
Distributed by U.S. Global Brokerage, Inc.
An investment in a money market fund is neither insured nor
guaranteed by the Federal Deposit Insurance Corporation or any other
government agency. Although the fund seeks to preserve the value of
your investment at $1.00 per share, it is possible to lose money by
investing in the fund.
All opinions expressed and data provided are subject to change
without notice. Some of these opinions may not be appropriate to
every investor. Foreign and emerging market investing involves
special risks such as currency fluctuation and less public
disclosure, as well as economic and political risk. Gold funds may
be susceptible to adverse economic, political or regulatory
developments due to concentrating in a single theme. The price of
gold is subject to substantial price fluctuations over short periods
of time and may be affected by unpredicted international monetary
and political policies. We suggest investing no more than 5% to 10%
of your portfolio in gold or gold stocks. Tax-exempt income is
federal income tax free. A portion of this income may be subject to
state and local income taxes, and if applicable, may subject certain
investors to the Alternative Minimum Tax as well. Bond funds are
subject to interest-rate risk; their value declines as interest
rates rise. Diversification does not protect an investor from market
risks and does not assure a profit.
6
MONEY MARKET FUNDS
MANAGEMENT TEAM'S PERSPECTIVE
INTRODUCTION
The U.S. Treasury Securities Cash Fund seeks to obtain a high level
of current income while maintaining the highest degree of safety of
principal and liquidity. The U.S. Government Securities Savings Fund
seeks to achieve a consistently high yield with safety of principal.
PERFORMANCE
U.S. TREASURY SECURITIES CASH FUND As of December 31, 2007
7-Day Yield 2.58%
---------------------------------------------------------------
7-Day Effective Yield 2.62%
---------------------------------------------------------------
Weighted Average Days to Maturity 9
U.S. GOVERNMENT SECURITIES SAVINGS FUND As of December 31, 2007
7-Day Yield 3.96%
---------------------------------------------------------------
7-Day Effective Yield 4.03%
---------------------------------------------------------------
Weighted Average Days to Maturity 37
An investment in either the U.S. Government Securities Savings Fund
or the U.S. Treasury Securities Cash Fund is not insured or
guaranteed by the Federal Deposit Insurance Corporation (FDIC) or by
any other government agency. Although the funds seek to preserve the
value of your investments at $1.00 per share, it is possible to lose
money by investing in the funds.
The Adviser has contractually limited total fund operating expenses
to not exceed 1.00% for the U.S. Treasury Securities Cash Fund and
0.45% for the U.S. Government Securities Savings Fund on an
annualized basis through November 1, 2008, and until such later date
as the Adviser determines.
PERFORMANCE COMMENTARY
The U.S. Government Securities Savings Fund outperformed the Lipper
government-only money market funds for the six months ending
December 31, 2007, returning 2.25 percent versus 2.16 percent for
the peer group. The U.S. Treasury Securities Cash Fund
underperformed the Lipper treasury money market funds for the six
months ending December 31, 2007, returning 1.80 percent versus 1.90
percent for the peer group. The U.S. Treasury Securities Cash Fund
is recognized as an excellent alternative to a bank checking
account. It offers free unlimited check writing and timely
statements rivaling a full service commercial bank checking account.
7
MONEY MARKET FUNDS
SIX MONTHS IN REVIEW - ECONOMIC AND POLITICAL ISSUES THAT AFFECTED
THE FUNDS
Recession fears have entered the market's psyche over the past six
months as subprime debt problems have led to a full blown financial
crisis. Housing data remains dismal - over the past two years
housing starts have fallen by more than 50 percent and the market is
not currently showing any signs of a recovery. Credit conditions are
more difficult for the consumer as delinquency and default rates are
up for housing, auto loans and credit card debt. This has led to a
lackluster holiday spending season, likely the worst in at least 5
years. Manufacturing data has also shown signs of weakness as the
ISM (Institute for Supply Management) Manufacturing Index fell
decisively below 50 in December. Unemployment has also risen,
hitting 5 percent in December, the highest levels in two years. The
inflation situation has deteriorated over the past six months, with
the year-over-year change in the Consumer Price Index (CPI) at the
highest annual level since 1990. Over the past six months, the
Federal Reserve has become very active, cutting interest rates by a
total of 100 basis points and has taken other action to help ease
the financial crisis. Yields on the three-month Treasury bill fell
157 basis points to 3.24 percent, while yields on the six-month
T-bills dropped 155 basis points to 3.39 percent. One-year agency
discount note yields moved lower by 138 basis points to 3.86
percent.
INVESTMENT HIGHLIGHTS
For much of the period, the U.S. Government Securities Savings Fund
took a laddered approach by buying fixed-rate securities across the
money market spectrum. The fund averaged a weighted average maturity
of 31 days, which has been on a rising trend over the past six
months as Fed expectations have changed dramatically. The fund took
advantage of higher yields by selectively extending its ladder. The
U.S. Treasury Securities Cash Fund followed a similar approach,
averaging a weighted average maturity of 19 days over the period.
The market dynamics were different in the treasury markets as a
tremendous amount of money flowed into the safest and most liquid
securities, which pushed yields to very low levels relative to other
money-market alternatives. The U.S. Treasury Securities Cash Fund
took advantage of relatively high repurchase rates, which kept the
weighted average maturity lower than the U.S. Government Securities
Savings Fund.
CURRENT OUTLOOK
The markets are currently braced for a recession and the fed funds
futures market is pricing in very sharp reductions in fed funds. The
market may have gotten ahead of itself, as international growth will
continue to support the U.S. economy. President Bush and the
Congress will likely develop some form of fiscal stimulus package to
bolster the economy, and we are already well into an aggressive Fed
easing cycle. These factors lead us to believe that while the Fed
will cut interest rates, the markets have largely priced in what
appears to be a worst-case scenario.
8
TAX FREE FUNDS
MANAGEMENT TEAM'S PERSPECTIVE
INTRODUCTION
The U.S. Global Investors Tax Free and Near-Term Tax Free Funds seek
to provide a high level of current income exempt from federal income
taxation and to preserve capital. However, a portion of any
distribution may be subject to federal and/or state income taxes.
The Near-Term Tax Free Fund will maintain a weighted average
maturity of less than five years, while the Tax Free Fund will
generally maintain a longer weighted average maturity.
PERFORMANCE GRAPHS
NEAR-TERM TAX FREE FUND
[Near-Term Tax Free Fund Graph]
Lehman 3-Year
Near-Term Municipal
Date Tax Free Fund Bond Index
12/31/97 $ 10,000.00 $ 10,000.00
01/30/98 10,080.52 10,066.18
02/27/98 10,075.83 10,087.21
03/31/98 10,072.06 10,103.29
04/30/98 10,058.82 10,089.68
05/29/98 10,167.95 10,183.08
06/30/98 10,200.32 10,217.10
07/31/98 10,230.99 10,254.21
08/31/98 10,346.49 10,353.79
09/30/98 10,446.96 10,419.35
10/30/98 10,442.12 10,470.06
11/30/98 10,457.66 10,495.42
12/31/98 10,463.51 10,520.78
01/29/99 10,555.43 10,616.03
02/26/99 10,529.92 10,627.78
03/31/99 10,538.78 10,637.06
04/30/99 10,572.36 10,669.84
05/28/99 10,542.64 10,654.38
06/30/99 10,440.29 10,590.67
07/30/99 10,490.15 10,643.25
08/31/99 10,458.12 10,656.23
09/30/99 10,487.25 10,696.44
10/29/99 10,468.11 10,697.68
11/30/99 10,526.72 10,744.68
12/31/99 10,505.42 10,727.36
01/31/00 10,492.19 10,746.54
02/29/00 10,526.92 10,780.55
03/31/00 10,615.07 10,836.22
04/28/00 10,587.30 10,837.46
05/31/00 10,575.95 10,848.59
06/30/00 10,716.82 10,985.90
07/31/00 10,815.57 11,074.93
08/31/00 10,910.48 11,158.60
09/29/00 10,905.25 11,161.82
10/31/00 10,975.64 11,225.11
11/30/00 11,024.14 11,270.17
12/31/00 11,187.07 11,395.68
01/31/01 11,303.82 11,568.65
02/28/01 11,328.32 11,613.89
03/30/01 11,402.06 11,695.53
04/30/01 11,353.80 11,678.44
05/31/01 11,446.35 11,784.82
06/30/01 11,489.54 11,837.31
07/31/01 11,592.42 11,934.34
08/31/01 11,716.27 12,056.87
09/30/01 11,748.97 12,118.39
10/31/01 11,832.03 12,197.21
11/30/01 11,755.27 12,158.26
12/31/01 11,703.59 12,146.65
01/31/02 11,860.22 12,300.92
02/28/02 11,959.80 12,393.17
03/31/02 11,778.96 12,208.51
04/30/02 11,986.04 12,387.98
05/31/02 12,043.01 12,459.83
06/30/02 12,138.23 12,566.98
07/31/02 12,240.41 12,665.01
08/31/02 12,351.89 12,746.06
09/30/02 12,515.61 12,846.76
10/31/02 12,400.18 12,776.10
11/30/02 12,369.55 12,779.93
12/31/02 12,545.77 12,963.96
01/31/03 12,565.14 13,005.45
02/28/03 12,680.51 13,088.68
03/31/03 12,678.22 13,072.98
04/30/03 12,728.71 13,108.27
05/31/03 12,905.78 13,209.21
06/30/03 12,863.15 13,188.07
07/31/03 12,612.58 13,069.38
08/31/03 12,699.36 13,136.03
09/30/03 12,939.43 13,333.07
10/31/03 12,877.82 13,270.41
11/30/03 12,916.28 13,283.68
12/31/03 12,960.65 13,311.57
01/31/04 13,012.17 13,358.17
02/29/04 13,131.85 13,471.71
03/31/04 13,094.23 13,435.34
04/30/04 12,922.15 13,299.64
05/31/04 12,867.82 13,247.77
06/30/04 12,889.13 13,271.62
07/31/04 12,978.14 13,368.50
08/31/04 13,114.94 13,508.87
09/30/04 13,143.55 13,523.73
10/31/04 13,173.43 13,561.59
11/30/04 13,119.53 13,496.50
12/31/04 13,187.95 13,549.14
01/31/05 13,206.00 13,531.52
02/28/05 13,175.85 13,490.93
03/31/05 13,085.19 13,446.41
04/30/05 13,176.06 13,514.98
05/31/05 13,212.49 13,539.31
06/30/05 13,242.94 13,608.36
07/31/05 13,212.42 13,577.06
08/31/05 13,249.12 13,621.87
09/30/05 13,279.79 13,628.68
10/31/05 13,249.05 13,608.23
11/30/05 13,286.03 13,620.48
12/31/05 13,316.92 13,668.15
01/31/06 13,292.15 13,698.22
02/28/06 13,329.42 13,709.18
03/31/06 13,304.50 13,684.51
04/30/06 13,329.49 13,707.77
05/31/06 13,373.29 13,755.75
06/30/06 13,341.90 13,730.99
07/31/06 13,442.59 13,824.36
08/31/06 13,543.57 13,933.57
09/30/06 13,644.83 13,997.66
10/31/06 13,689.26 14,039.66
11/30/06 13,727.46 14,088.80
12/31/06 13,701.92 14,085.98
01/31/07 13,676.31 14,085.98
02/28/07 13,843.25 14,181.76
03/31/07 13,823.93 14,222.89
04/30/07 13,862.69 14,251.34
05/31/07 13,836.78 14,249.91
06/30/07 13,810.80 14,261.31
07/31/07 13,915.03 14,352.58
08/31/07 14,026.09 14,432.96
09/30/07 14,130.96 14,532.54
10/31/07 14,176.96 14,602.30
11/30/07 14,282.47 14,714.74
12/31/07 14,322.14 14,789.78
AVERAGE ANNUAL PERFORMANCE For the Periods Ended
December 31, 2007
Six Month One Year Five Year Ten Year
Near-Term Tax Free Fund 3.70% 4.53% 2.68% 3.66%
----------------------------------------------------------------------
Lehman 3-Year Municipal
Bond Index 3.71% 5.00% 2.67% 3.99%
Performance data quoted above is historical. Past performance is no
guarantee of future results. Current performance may be higher or
lower than the performance data quoted. Investment return and
principal value of an investment will fluctuate so that an investor's
shares, when redeemed, may be worth more or less than their original
cost.
The graph and table do not reflect the deduction of taxes that a
shareholder would pay on fund distributions or the redemption of fund
shares.
The Lehman Brothers 3-Year Municipal Bond Index is a total return
benchmark designed for municipal assets. The index includes bonds with
a minimum credit rating of BAA3, are issued as part of a deal of at
least 50 million, have an amount outstanding of at least 5 million and
have a maturity of two to four years. The returns for the index
reflects no deduction for fees, expenses or taxes.
The Adviser has agreed to limit the fund's total operating expenses to
0.45% through November 1, 2008.
9
TAX FREE FUNDS
TAX FREE FUND
[Tax Free Fund Graph]
Lehman 10-Year
Municipal
Date Tax Free Fund Bond Index
12/31/97 $ 10,000.00 $ 10,000.00
01/30/98 10,087.42 10,110.92
02/27/98 10,074.30 10,110.22
03/31/98 10,064.42 10,103.28
04/30/98 10,022.28 10,047.70
05/29/98 10,184.89 10,218.59
06/30/98 10,219.87 10,256.11
07/31/98 10,252.54 10,272.55
08/31/98 10,414.02 10,451.08
09/30/98 10,537.33 10,606.46
10/30/98 10,501.73 10,611.09
11/30/98 10,550.24 10,642.82
12/31/98 10,561.34 10,675.93
01/29/99 10,685.09 10,839.41
02/26/99 10,614.37 10,742.16
03/31/99 10,632.54 10,736.60
04/30/99 10,662.07 10,765.31
05/28/99 10,567.92 10,689.82
06/30/99 10,361.46 10,491.14
07/30/99 10,382.54 10,561.54
08/31/99 10,249.45 10,522.64
09/30/99 10,245.91 10,558.06
10/29/99 10,080.62 10,483.50
11/30/99 10,203.73 10,598.12
12/31/99 10,093.54 10,543.01
01/31/00 9,991.52 10,499.94
02/29/00 10,132.06 10,582.38
03/31/00 10,401.52 10,788.24
04/28/00 10,320.17 10,734.05
05/31/00 10,234.86 10,670.37
06/30/00 10,524.12 10,960.29
07/31/00 10,674.86 11,112.33
08/31/00 10,839.16 11,284.19
09/29/00 10,758.08 11,232.53
10/31/00 10,896.53 11,347.44
11/30/00 10,984.83 11,408.59
12/31/00 11,279.02 11,677.44
01/31/01 11,382.15 11,828.18
02/28/01 11,401.16 11,848.03
03/30/01 11,501.25 11,949.05
04/30/01 11,351.98 11,801.02
05/31/01 11,469.15 11,929.48
06/30/01 11,556.86 12,000.42
07/31/01 11,723.20 12,165.78
08/31/01 11,920.20 12,371.98
09/30/01 11,867.61 12,355.78
10/31/01 12,009.24 12,508.29
11/30/01 11,862.19 12,346.38
12/31/01 11,708.75 12,216.94
01/31/02 11,919.03 12,447.84
02/28/02 12,073.60 12,625.84
03/31/02 11,807.28 12,365.75
04/30/02 12,071.55 12,652.64
05/31/02 12,133.61 12,712.10
06/30/02 12,271.22 12,869.73
07/31/02 12,417.30 13,040.90
08/31/02 12,545.72 13,210.43
09/30/02 12,799.27 13,526.16
10/31/02 12,588.66 13,279.99
11/30/02 12,514.13 13,171.09
12/31/02 12,762.98 13,459.54
01/31/03 12,721.88 13,388.20
02/28/03 12,884.50 13,619.82
03/31/03 12,871.09 13,626.63
04/30/03 12,955.93 13,727.46
05/31/03 13,259.86 14,120.07
06/30/03 13,190.19 14,052.29
07/31/03 12,675.09 13,462.10
08/31/03 12,782.81 13,577.87
09/30/03 13,134.10 14,035.44
10/31/03 13,055.23 13,928.78
11/30/03 13,150.14 14,079.21
12/31/03 13,233.65 14,228.45
01/31/04 13,312.12 14,288.20
02/29/04 13,503.51 14,539.68
03/31/04 13,437.43 14,456.80
04/30/04 13,119.93 14,057.79
05/31/04 13,080.27 14,066.23
06/30/04 13,025.46 14,112.65
07/31/04 13,144.07 14,305.99
08/31/04 13,331.07 14,619.29
09/30/04 13,386.34 14,696.77
10/31/04 13,477.61 14,814.35
11/30/04 13,365.39 14,646.95
12/31/04 13,516.20 14,819.78
01/31/05 13,610.48 14,945.75
02/28/05 13,542.31 14,851.59
03/31/05 13,457.40 14,720.90
04/30/05 13,641.11 15,006.48
05/31/05 13,721.03 15,107.02
06/30/05 13,777.83 15,194.64
07/31/05 13,727.54 15,065.49
08/31/05 13,850.81 15,249.29
09/30/05 13,769.86 15,112.05
10/31/05 13,702.20 14,997.19
11/30/05 13,766.69 15,090.18
12/31/05 13,891.74 15,227.50
01/31/06 13,927.10 15,276.23
02/28/06 14,035.81 15,366.36
03/31/06 13,949.67 15,208.08
04/30/06 13,951.97 15,180.71
05/31/06 14,001.72 15,283.94
06/30/06 13,957.60 15,215.16
07/31/06 14,113.72 15,417.52
08/31/06 14,303.15 15,681.16
09/30/06 14,384.11 15,795.63
10/31/06 14,459.45 15,890.41
11/30/06 14,553.95 16,015.94
12/31/06 14,518.40 15,940.66
01/31/07 14,476.78 15,868.93
02/28/07 14,652.22 16,092.68
03/31/07 14,622.29 16,060.50
04/30/07 14,657.14 16,111.89
05/31/07 14,599.28 16,028.11
06/30/07 14,536.38 15,941.56
07/31/07 14,634.67 16,085.03
08/31/07 14,610.32 16,125.25
09/30/07 14,826.54 16,341.32
10/31/07 14,868.20 16,398.52
11/30/07 14,951.83 16,580.54
12/31/07 15,002.41 16,626.97
AVERAGE ANNUAL PERFORMANCE For the Periods Ended
December 31, 2007
Six Month One Year Five Year Ten Year
Tax Free Fund 3.21% 3.33% 3.28% 4.14%
----------------------------------------------------------------------
Lehman 10-Year Municipal
Bond Index 4.29% 4.29% 4.31% 5.21%
Performance data quoted above is historical. Past performance is no
guarantee of future results. Current performance may be higher or
lower than the performance data quoted. Investment return and
principal value of an investment will fluctuate so that an investor's
shares, when redeemed, may be worth more or less than their original
cost.
The graph and table do not reflect the deduction of taxes that a
shareholder would pay on fund distributions or the redemption of fund
shares.
The Lehman Brothers 10-Year Municipal Bond Index is a total return
benchmark designed for long-term municipal assets. The index includes
bonds with a minimum credit rating of BAA3, are issued as part of a
deal of at least 50 million, have an amount outstanding of at least 5
million and have a maturity of 8 to 12 years. The returns for the
index reflects no deduction for fees, expenses or taxes.
The Adviser has agreed to limit the fund's total operating expenses to
0.70% through November 1, 2008.
PERFORMANCE COMMENTARY
Over the past six months, the Near-Term Tax Free Fund posted a 3.70
percent return, while the Tax Free Fund returned 3.21 percent. The
Near-Term Tax Free Fund tracked closely its benchmark, the Lehman
3-year municipal index, which returned 3.71 percent. The Tax Free
Fund underperformed its benchmark, the Lehman 10-year municipal
index, which returned 4.29 percent. Both funds outperformed their
respective Lipper peer groups over the past six months. The
performance difference for the Tax Free Fund was primarily driven by
fund maturity preferences, as the fund maintained exposure across a
wide range of maturities versus the
10
TAX FREE FUNDS
bullet structure of the index. Both funds benefited from a
conservative credit profile. As the subprime market imploded,
liquidity dried up and credit spreads widened. This primarily
affected high-yield securities and also impacted longer-dated
securities.
SIX MONTHS IN REVIEW - ECONOMIC AND POLITICAL ISSUES THAT AFFECTED
THE FUNDS
Municipals rallied strongly during the second half of 2007 as the
Fed initiated an easing campaign in September and expectations for
an almost immediate rate cut surfaced in August. The most
significant impact on the municipal market was the credit crisis.
Over the past several years, many investors had become complacent
about credit risks and therefore investors in higher-yielding
securities were not being adequately compensated for the risk they
were taking. The long end of the municipal market was also impacted
as leveraged investors could no longer support their activities as
liquidity dried up. The municipal insurers also came under pressure
- -they had insured complex structured products that are now
experiencing significantly more losses than originally anticipated,
which also pressured the yields of insured bonds. In the municipal
market, the best-performing sectors were water and sewer and
education bonds, which are traditional essential-service municipal
bonds. Industrial development bonds, generally lower quality and
leveraged to tobacco issues, significantly underperformed, trailing
the overall market by as much as 800 basis points. The noninvestment
grade portion of the municipal market also posted very weak results
similar to the industrial development sector.
INVESTMENT HIGHLIGHTS
STRENGTHS
* Both funds maintained a conservative credit profile, which
significantly benefited performance.
* Both funds were significantly overweight Texas municipals, which
outperformed.
* Both funds were significantly overweight the education sector,
which outperformed.
WEAKNESSES
* Both funds maintained an overweight position relative to the
benchmark in longer term securities, which underperformed.
* The funds did have some exposure to low-quality, investment-grade
bonds, which underperformed.
11
TAX FREE FUNDS
* The funds were underweight the water and sewer sector, which
outperformed.
Note that taxable investments by the funds may generate ordinary
income that will be distributed to shareholders as taxable income.
For the six months ended December 31, 2007, 14 percent and 11
percent of the distributions of the Near-Term Tax Free Fund and the
Tax Free Fund, respectively, were characterized as ordinary income
(taxable).
CURRENT OUTLOOK
OPPORTUNITIES
* We are in the middle of a Fed easing cycle which will likely
continue through the first half of 2008.
* The extremely poor performance of high-yield-related securities
now offers opportunities at much more attractive prices.
THREATS
* If one or more major municipal insurers is downgraded, it may
threaten the current structure of the market and how bonds are
viewed. Over the past several years, roughly half of all bonds
issued were insured.
* Inflation remains a threat, as CPI rose to the highest annual
level since 1990.
12
TAX FREE FUNDS
NEAR-TERM TAX FREE FUND
MUNICIPAL BOND RATINGS
(BASED ON TOTAL MUNICIPAL BONDS) December 31, 2007
[Near-Term Tax Free Fund Pie Chart]
AAA 64.67%
AA 26.82%
A 8.51%
TAX FREE FUND
MUNICIPAL BOND RATINGS
(BASED ON TOTAL MUNICIPAL BONDS) December 31, 2007
[Tax Free Fund Pie Chart]
BBB 2.29%
AAA 65.55%
AA 12.14%
A 20.02%
13
ALL AMERICAN EQUITY FUND
MANAGEMENT TEAM'S PERSPECTIVE
INTRODUCTION
The principal objective of the All American Equity Fund is to seek
capital appreciation by investing primarily in a broadly diversified
portfolio of domestic common stocks. The fund invests in
large-capitalization stocks, while retaining the flexibility to seek
out promising individual stock opportunities. The fund seeks capital
appreciation and does not emphasize income.
PERFORMANCE GRAPH
ALL AMERICAN EQUITY FUND
[All American Equity Fund Graph]
All American S&P
Date Equity Fund 500 Index
12/31/97 $ 10,000.00 $ 10,000.00
01/30/98 10,196.20 10,110.61
02/27/98 10,833.08 10,839.84
03/31/98 11,334.74 11,394.93
04/30/98 11,507.21 11,509.57
05/29/98 11,340.79 11,311.74
06/30/98 11,815.55 11,771.21
07/31/98 11,779.00 11,645.87
08/31/98 10,235.06 9,962.14
09/30/98 10,885.83 10,600.32
10/30/98 11,572.68 11,462.57
11/30/98 12,296.17 12,157.29
12/31/98 12,884.05 12,857.86
01/29/99 13,342.62 13,395.53
02/26/99 12,940.59 12,979.21
03/31/99 13,273.21 13,498.49
04/30/99 13,600.79 14,021.22
05/28/99 13,377.15 13,690.13
06/30/99 14,117.98 14,449.90
07/30/99 13,641.92 13,998.70
08/31/99 13,465.36 13,929.45
09/30/99 13,054.25 13,547.59
10/29/99 13,840.53 14,404.89
11/30/99 14,042.63 14,697.71
12/31/99 14,766.39 15,563.35
01/31/00 14,029.04 14,781.41
02/29/00 13,727.68 14,501.61
03/31/00 14,933.74 15,920.28
04/28/00 14,564.73 15,441.30
05/31/00 14,147.59 15,124.49
06/30/00 14,502.48 15,497.36
07/31/00 14,114.08 15,255.07
08/31/00 15,051.38 16,202.63
09/29/00 13,931.11 15,347.24
10/31/00 13,423.94 15,282.36
11/30/00 11,920.33 14,077.51
12/31/00 11,989.12 14,146.41
01/31/01 12,091.60 14,648.31
02/28/01 10,620.11 13,312.65
03/30/01 9,866.74 12,469.29
04/30/01 10,777.90 13,438.28
05/31/01 10,716.33 13,528.32
06/30/01 10,447.50 13,199.06
07/31/01 10,209.31 13,069.12
08/31/01 9,441.35 12,250.97
09/30/01 9,022.88 11,261.68
10/31/01 9,129.71 11,476.42
11/30/01 9,680.28 12,356.74
12/31/01 9,704.94 12,464.99
01/31/02 9,376.23 12,283.09
02/28/02 9,146.14 12,046.20
03/31/02 9,565.24 12,499.25
04/30/02 9,088.62 11,741.45
05/31/02 9,725.48 11,654.95
06/30/02 8,710.61 10,824.76
07/31/02 7,560.15 9,980.93
08/31/02 7,699.85 10,046.46
09/30/02 7,021.90 8,954.61
10/31/02 7,371.15 9,742.77
11/30/02 7,399.91 10,316.22
12/31/02 7,124.62 9,710.16
01/31/03 7,030.12 9,455.79
02/28/03 6,915.07 9,313.92
03/31/03 7,017.79 9,404.34
04/30/03 7,547.83 10,178.99
05/31/03 7,884.75 10,715.29
06/30/03 7,868.31 10,851.98
07/31/03 8,061.42 11,043.32
08/31/03 8,336.71 11,258.69
09/30/03 8,221.67 11,139.13
10/31/03 8,837.98 11,769.26
11/30/03 9,154.36 11,872.81
12/31/03 9,355.69 12,495.48
01/31/04 9,384.45 12,724.83
02/29/04 9,507.71 12,901.70
03/31/04 9,437.87 12,707.06
04/30/04 8,907.83 12,507.58
05/31/04 9,018.77 12,679.22
06/30/04 9,257.08 12,925.77
07/31/04 8,731.16 12,497.97
08/31/04 8,710.61 12,548.52
09/30/04 8,981.79 12,684.43
10/31/04 9,117.38 12,878.21
11/30/04 9,667.96 13,399.28
12/31/04 9,828.20 13,855.24
01/31/05 9,594.00 13,517.52
02/28/05 9,943.25 13,801.99
03/31/05 9,778.89 13,557.58
04/30/05 9,441.97 13,300.45
05/31/05 9,824.09 13,723.65
06/30/05 10,054.18 13,743.13
07/31/05 10,444.52 14,254.22
08/31/05 10,419.86 14,124.16
09/30/05 10,863.61 14,238.56
10/31/05 10,534.91 14,001.19
11/30/05 10,982.77 14,530.75
12/31/05 10,995.02 14,535.81
01/31/06 12,023.96 14,920.68
02/28/06 11,549.39 14,961.17
03/31/06 12,133.15 15,147.39
04/30/06 12,393.54 15,350.79
05/31/06 11,645.98 14,908.98
06/30/06 11,587.18 14,929.19
07/31/06 11,435.99 15,021.28
08/31/06 11,507.39 15,378.68
09/30/06 11,381.39 15,774.99
10/31/06 11,797.17 16,289.03
11/30/06 12,410.34 16,598.78
12/31/06 12,194.28 16,831.63
01/31/07 12,373.68 17,086.18
02/28/07 12,354.28 16,751.99
03/31/07 12,587.02 16,939.36
04/30/07 13,105.82 17,689.70
05/31/07 13,687.65 18,306.98
06/30/07 13,857.35 18,002.84
07/31/07 13,600.38 17,444.67
08/31/07 13,474.31 17,706.17
09/30/07 14,783.44 18,368.35
10/31/07 15,966.50 18,660.53
11/30/07 14,914.35 17,880.40
12/31/07 15,489.93 17,756.35
AVERAGE ANNUAL PERFORMANCE For the Periods Ended
December 31, 2007
Six Month One Year Five Year Ten Year
All American Equity Fund 11.78% 27.03% 16.79% 4.47%
----------------------------------------------------------------------
S&P 500 Index (1.37)% 5.49% 12.82% 5.91%
Performance data quoted above is historical. Past performance is no
guarantee of future results. Current performance may be higher or
lower than the performance data quoted. Investment return and
principal value of an investment will fluctuate so that an investor's
shares, when redeemed, may be worth more or less than their original
cost.
The graph and table do not reflect the deduction of taxes that a
shareholder would pay on fund distributions or the redemption of fund
shares.
The S&P 500 Index is a widely recognized capitalization-weighted index
of 500 common stock prices in U.S. companies. The returns for the
index reflects no deduction for fees, expenses or taxes.
The Adviser has agreed to limit the fund's total operating expenses to
1.75% through November 1, 2008.
14
ALL AMERICAN EQUITY FUND
SIX MONTHS IN REVIEW - ECONOMIC AND POLITICAL ISSUES THAT AFFECTED
THE FUND
The federal funds rate has been lowered three times since the last
report to 4.25 percent at the end of 2007. The three cuts totaled
100 basis points. Although third quarter gross domestic product
(GDP) accelerated to 4.9 percent, recent economic reports point
toward a slowdown in the domestic economy. The unemployment rate hit
5 percent in December, and housing remains very weak.
The question of decoupling has become one of recoupling. The fear is
that a slowdown in the U.S. will spread to the emerging markets
around the world.
Oil prices averaged $83 per barrel over the last six months but
finished the time period at $96. The price range for oil over the
last six months has been between $69 to $98. Stubbornly high oil
prices remain a headwind to economic growth in the U.S.
The yield on the 10-year Treasury note fell from 5.06 percent at the
start of the time period to 4.03 percent at the end of calendar
2007.
Sector performance was mixed, with energy, utilities, staples and
technology leading to the upside, while financials, discretion and
telecom leading to the downside.
INVESTMENT HIGHLIGHTS
OVERVIEW
The fund returned 11.78 percent for the 6-month period, compared to
a -1.37 percent return for the benchmark S&P 500 Index.
The fund's largest bets were in the technology and materials
sectors. The fund benefited from being early in the fertilizer and
agricultural-related names. Gold, a staple of the fund, was among
the top-performing groups over the time period. The overweight
position in technology was another source of alpha - the fund
benefited from exposure to videogame and Internet stocks. For the
most part, the fund avoided most of the carnage in the financial
sector and was underweight the discretion sector.
STRENGTHS
* Energy, utilities, staples and technology were the best performing
sectors in the S&P 500.
15
ALL AMERICAN EQUITY FUND
* The best-performing industry groups were fertilizer & agricultural
chemicals, construction & engineering and coal.
* Stocks in the fund that provided significant out performance were
Apple Computer, Inc.,(1) First Solar, Inc.,(2) The Mosaic
Company(3) and Research in Motion.(4)
WEAKNESSES
* The worst performing sectors were financials and consumer
discretion.
* The weakest performing industries were thrifts & mortgages,
homebuilders and real estate mortgage.
* Stocks that negatively impacted fund performance were General
Cable Corp.,(5) Terra Nitrogen Co., L.P.,(5) Corrections
Corporation of America(5) and Stockgroup Information Systems.(6)
SECTOR WEIGHTINGS--ALL AMERICAN EQUITY FUND AND S&P 500 INDEX
(AS OF DECEMBER 31, 2007 IN %)
ALL AMERICAN S&P 500 OVER
EQUITY FUND INDEX (UNDER)
% WEIGHTS % WEIGHTS % WEIGHT
SECTORS ------------------- --------- --------
Technology 25.49 16.73 8.76
Consumer 12.88 18.71 (5.83)
Energy 16.16 12.86 3.30
Financials 10.16 17.64 (7.48)
Materials 10.71 3.33 7.38
Health Care 7.65 11.97 (4.32)
Industrials 6.23 11.51 (5.28)
Telecom/Utilities 3.31 7.25 (3.94)
Cash Equivalent 7.41 0.0 7.41
------ ------ -----
TOTAL 100.00 100.00 0.00
====== ====== =====
From a macro perspective, the fund generally made the right sector
bets by being overweight materials and technology and benefited from
good stock picking in the energy sector. Being underweight the
financial and discretion sector also proved to be the right move.
The position in materials was a call on continued growth in emerging
economies, while the overweight position in technology focused on
strong demand for consumer electronics, in particular smartphones
and videogames. In energy, the fund benefited from call options on
PetroChina Co., Ltd.,(5) which appreciated over 180% before being
sold. An underweight position in utilities hurt the fund, as the
utility sector was the second-best performer during the time period.
16
ALL AMERICAN EQUITY FUND
The same case can be made with the staples sector, the
third-best-performing sector. The fund underweighted the financial
sector because these stocks were neither cheap enough to buy nor was
their EPS growth outlook compelling enough. The discretion sector
was de-emphasized due to concerns about consumer spending given the
weak housing market.
The stock markets were subject to profit-taking towards the end of
2007, but the areas of the market that worked in 2007 should
continue to work in 2008. The fund appears to be properly positioned
as we head into 2008.
FUND METRICS
- ----------------------------------------------------------------------------
P/E TO
RETURN ON GROWTH AVERAGE
REVENUE EARNINGS EQUITY - RATIO MARKET
GROWTH GROWTH ROE - PEG CAPITALIZATION
- ----------------------------------------------------------------------------
All American Equity $43.9
Fund 29% 61% 24.2% 1.5X Billion
- ----------------------------------------------------------------------------
S&P 500 Index 9% 14% 20.4% 1.4X $26.9
Billion
- ----------------------------------------------------------------------------
As of December 31, 2007, the average revenue growth in the last 12
months for the stocks in the fund was 29%, compared to 9% for the
stocks in the S&P 500 Index. The high relative growth also applies
to earnings of the stocks in the fund, which on average grew 61%
year-over-year over the last 12 months, as compared to 14% for the
S&P 500 Index. The fund's holdings also exhibit stronger return on
equity, which demonstrates the quality companies in which the fund
invests. Despite these higher growth rates, the
price-to-projected-earnings-per-share growth rate (PEG ratio) is
only slightly higher than that of the S&P 500 Index (1.5x for the
fund compared to 1.4x for the index).
The fund employed a new model that emphasized return on equity in
addition to consistent earnings and revenue growth. This should
result in a lower level of turnover compared to past years.
CURRENT OUTLOOK
OPPORTUNITIES
* The long-term Presidential Election Cycle indicates that odds
favor that 2008 should be a positive year for the market.
* The global infrastructure build-out should continue to be positive
for commodities such as steel, copper, aluminum and energy.
17
ALL AMERICAN EQUITY FUND
THREATS
* Stocks are not cheap on a historical basis and with peak
profitability behind us, further multiple expansion may be hard to
achieve.
* Rising energy and food prices could place a crimp in consumer
spending and slow economic growth in the U.S.
* Trade could become an issue with record trade deficits and a more
confrontational Congress.
(1)This security comprised 4.80% of the total net assets of the fund
as of December 31, 2007.
(2)This security comprised 3.23% of the total net assets of the fund
as of December 31, 2007.
(3)This security comprised 2.28% of the total net assets of the fund
as of December 31, 2007.
(4)This security comprised 4.12% of the total net assets of the fund
as of December 31, 2007.
(5)The fund did not hold this security as of December 31, 2007.
(6)This security comprised 0.26% of the total net assets of the fund
as of December 31, 2007.
18
ALL AMERICAN EQUITY FUND
TOP 10 EQUITY HOLDINGS BASED ON TOTAL INVESTMENTS December 31, 2007
APPLE COMPUTER, INC. 4.79%
COMPUTERS
---------------------------------------------------------------
RESEARCH IN MOTION LTD. 4.12%
ELECTRONICS & COMPONENTS
---------------------------------------------------------------
FIRST SOLAR, INC. 3.23%
ENERGY - ALTERNATIVE SOURCES
---------------------------------------------------------------
THE MOSAIC COMPANY 2.28%
CHEMICALS - AGRICULTURAL
---------------------------------------------------------------
MASTERCARD, INC. 2.23%
FINANCIAL SERVICES
---------------------------------------------------------------
GAMESTOP CORP. 2.15%
RETAIL
---------------------------------------------------------------
MONSANTO CO. 2.13%
CHEMICALS - AGRICULTURAL
---------------------------------------------------------------
DIAMOND OFFSHORE DRILLING, INC. 1.96%
OIL & GAS DRILLING
---------------------------------------------------------------
GOOGLE, INC. 1.91%
INTERNET
---------------------------------------------------------------
CME GROUP, INC. 1.90%
FINANCIAL SERVICES
---------------------------------------------------------------
TOTAL TOP TEN HOLDINGS 26.70%
PORTFOLIO PROFILE December 31, 2007
Country Distribution* % of Investments
---------------------------------------------------------------
United States 82.47%
---------------------------------------------------------------
Canada 8.85%
---------------------------------------------------------------
People's Republic of China 2.47%
---------------------------------------------------------------
Netherlands 1.29%
---------------------------------------------------------------
Other Foreign 4.92%
---------------------------------------------------------------
* Country distribution shown is based on domicile and the
locale of company operations may be different.
19
CHINA REGION OPPORTUNITY FUND
MANAGEMENT TEAM'S PERSPECTIVE
INTRODUCTION
The China Region Opportunity Fund seeks capital appreciation by
focusing on the economic growth in the greater China region,
including China, Hong Kong, Singapore, Korea and Taiwan, and other
Asian countries.(1) The fund emphasizes a long-term growth approach
over current income.
PERFORMANCE GRAPH
CHINA REGION OPPORTUNITY FUND
[China Region Opportunity Fund Graph]
Morgan Stanley
China Region Capital Far East
Opportunity Free ex
Date Fund Japan Index*
12/31/97 $ 10,000.00 $ 10,000.00
01/30/98 7,810.34 9,137.29
02/27/98 9,982.76 11,215.41
03/31/98 9,982.76 10,921.02
04/30/98 9,172.41 9,775.85
05/29/98 8,137.93 8,235.32
06/30/98 7,051.72 7,315.38
07/31/98 5,965.52 7,093.77
08/31/98 4,913.79 5,977.63
09/30/98 5,965.52 6,606.66
10/30/98 6,775.86 8,396.96
11/30/98 6,982.76 9,146.55
12/31/98 6,672.41 9,261.24
01/29/99 5,838.36 8,945.24
02/26/99 5,803.61 8,771.44
03/31/99 6,429.15 9,725.81
04/30/99 7,767.11 11,959.32
05/28/99 7,575.97 11,405.63
06/30/99 9,695.85 13,364.41
07/30/99 9,209.32 12,829.18
08/31/99 9,261.45 13,025.75
09/30/99 8,774.92 11,971.53
10/29/99 8,688.04 12,535.06
11/30/99 9,626.35 13,774.12
12/31/99 10,390.89 14,762.48
01/31/00 10,443.02 14,426.14
02/29/00 11,138.07 13,651.29
03/31/00 11,572.47 14,263.20
04/28/00 10,390.89 13,085.08
05/31/00 9,834.86 12,004.66
06/30/00 10,616.78 12,546.95
07/31/00 10,668.91 12,079.91
08/31/00 10,443.02 11,916.30
09/29/00 9,574.22 10,525.08
10/31/00 8,722.79 9,691.65
11/30/00 8,253.64 9,197.61
12/31/00 8,429.14 9,171.00
01/31/01 8,781.08 10,397.60
02/28/01 8,341.15 9,887.63
03/30/01 8,270.76 8,804.62
04/30/01 8,605.11 8,817.90
05/31/01 8,886.67 8,731.56
06/30/01 8,657.90 8,533.16
07/31/01 7,936.41 8,192.80
08/31/01 7,320.50 8,045.24
09/30/01 6,493.43 6,754.98
10/31/01 6,739.79 7,092.92
11/30/01 7,214.92 8,059.15
12/31/01 7,320.50 8,787.09
01/31/02 7,496.48 9,141.00
02/28/02 7,408.49 9,155.26
03/31/02 7,778.03 9,802.19
04/30/02 7,989.20 9,918.13
05/31/02 7,971.60 9,690.53
06/30/02 7,707.64 9,156.87
07/31/02 7,197.32 8,803.46
08/31/02 6,933.36 8,593.66
09/30/02 6,352.65 7,601.68
10/31/02 6,405.44 8,005.49
11/30/02 6,704.59 8,398.35
12/31/02 6,423.04 7,816.13
01/31/03 6,616.61 7,908.33
02/28/03 6,616.61 7,520.12
03/31/03 6,335.05 7,159.64
04/30/03 6,370.24 7,386.43
05/31/03 7,091.74 7,988.90
06/30/03 7,338.10 8,439.17
07/31/03 8,024.40 9,142.70
08/31/03 8,640.30 9,788.19
09/30/03 8,921.86 9,811.98
10/31/03 10,452.83 10,636.19
11/30/03 10,751.99 10,466.05
12/31/03 11,634.34 11,002.98
01/31/04 11,705.28 11,713.93
02/29/04 12,361.48 12,135.00
03/31/04 11,953.57 11,860.64
04/30/04 10,747.57 11,141.77
05/31/04 10,694.37 10,835.66
06/30/04 10,392.87 10,711.71
07/31/04 10,286.46 10,391.16
08/31/04 10,375.13 10,897.86
09/30/04 11,084.54 11,250.07
10/31/04 11,102.28 11,290.85
11/30/04 11,811.69 12,248.44
12/31/04 12,124.13 12,568.99
01/31/05 11,724.83 12,641.56
02/28/05 12,795.68 13,348.31
03/31/05 12,396.38 12,696.70
04/30/05 12,178.58 12,535.64
05/31/05 12,015.23 12,773.87
06/30/05 12,468.98 13,037.33
07/31/05 12,922.73 13,835.65
08/31/05 12,850.13 13,331.95
09/30/05 13,557.97 13,971.62
10/31/05 12,741.23 13,087.94
11/30/05 13,322.02 14,007.75
12/31/05 14,388.94 14,813.77
01/31/06 15,896.71 15,847.46
02/28/06 15,710.57 15,788.93
03/31/06 16,808.82 15,934.61
04/30/06 17,944.30 17,043.74
05/31/06 16,752.98 15,830.83
06/30/06 16,213.16 15,699.06
07/31/06 16,045.63 15,663.33
08/31/06 16,194.54 16,048.90
09/30/06 16,473.76 16,491.61
10/31/06 17,013.58 16,912.82
11/30/06 18,297.97 18,242.25
12/31/06 19,832.17 19,031.14
01/31/07 19,529.68 18,697.04
02/28/07 19,227.19 18,834.71
03/31/07 19,756.55 19,203.15
04/30/07 20,550.59 19,860.76
05/31/07 22,327.74 20,905.10
06/30/07 23,726.77 22,006.81
07/31/07 25,352.66 23,543.76
08/31/07 26,354.67 23,210.91
09/30/07 31,440.33 25,870.00
10/31/07 36,110.06 28,440.51
11/30/07 31,478.14 25,760.00
12/31/07 30,400.89 25,382.80
AVERAGE ANNUAL PERFORMANCE For the Periods Ended
December 31, 2007
Six Month One Year Five Year Ten Year
China Region Opportunity
Fund 28.13% 53.29% 36.44% 11.75%
-----------------------------------------------------------------------
Hang Seng Composite Index 28.23% 44.32% 32.73% n/a
-----------------------------------------------------------------------
Morgan Stanley Capital Far
East Free ex Japan Index* 15.34% 33.38% 26.55% 9.76%
<FN>
* These are not total returns. These returns reflect simple
appreciation only and do not reflect dividend reinvestment.
</FN>
Performance data quoted above is historical. Past performance is no
guarantee of future results. Current performance may be higher or lower
than the performance data quoted. Investment return and principal value
of an investment will fluctuate so that an investor's shares, when
redeemed, may be worth more or less than their original cost.
The graph and table do not reflect the deduction of taxes that a
shareholder would pay on fund distributions or the redemption of fund
shares.
The Hang Seng Composite Index is a market-capitalization weighted index
that comprises the top 200 companies listed on The Stock Exchange of
Hong Kong, based on average market capitalization for the twelve
months. The index commenced January 2000; it is not included in the
graph as it had less than ten years of data. The Morgan Stanley Capital
Far East Free ex Japan Index is an index in a series representing both
the developed and the emerging markets for a particular region. The
returns for the indexes reflect no deduction for fees, expenses or
taxes.
20
CHINA REGION OPPORTUNITY FUND
SIX MONTHS IN REVIEW - ECONOMIC AND POLITICAL ISSUES THAT AFFECTED
THE FUND
China's GDP decelerated to 11.5 percent in the third quarter of 2007
from 11.9 percent in the second quarter. The government began
implementing policies towards the end of 2007 to slow down the
economy in 2008. In addition, concerns about a slowdown in the U.S.
started to weigh on stocks in the region in the fourth quarter of
2007.
Fixed asset investment averaged 27 percent growth in the first 11
months of 2007, which was consistent with the strong import data in
the same time period. Strong import demand has resulted from the
level of fixed asset investment spending.
Interest rates (as measured by the one-year lending rate) were
increased six times in 2007 to 7.47 percent at the calendar
year-end. The deposit reserve ratio was raised 10 times to 14.5
percent. Despite these moves to help reduce the liquidity within the
financial markets, money supply as measured by M2(2) averaged 17.5
percent growth in 2007, surpassing the government target of 16
percent. M1(2) money supply growth remained over 21 percent,
indicating that people were staying liquid in order to invest in the
stock market or the property market.
All sectors in the Hang Seng Composite Index (HSCI) delivered a
positive return over the six months. Telecom, energy and property
were at the top of the list. Most of the move came in the first
three months of the time period as excitement about a liquidity boom
coming into Hong Kong drove that market higher. During the last half
of the time period, concerns over a worldwide slowdown and a
recoupling of economies around the world caused markets to be flat
to down.
INVESTMENT HIGHLIGHTS
OVERVIEW
The fund returned 28.13 percent for the 6-month time period,
compared to a 28.23 percent return for the HSCI.
Country allocation played a major role in the first three months of
the time period. China unveiled details about two plans that would
allow mainland Chinese investors to legally invest outside of China
for the first time. Excitement about these plans drove the Hong Kong
markets higher, in particular the H-share and Red Chip indices. The
fund significantly increased its exposure to the H-share market, and
this benefited the fund in the third quarter of 2007. The last three
months of the time period saw profit-taking across most of the
markets as news spread about a delay in
21
CHINA REGION OPPORTUNITY FUND
the two Chinese investment plans, as well as renewed concerns about
a slowdown in the U.S. and its impact on the export-dependent
economies in Southeast Asia. A very sharp selloff in November in the
H-share stocks caused the underperformance for the six-month time
period.
STRENGTHS
* The best-performing country was China (Red Chips, Shanghai B
shares and H-shares), followed by Hong Kong and Malaysia.
* Oil and resources and telecom were the best-performing sectors in
the Hang Seng Composite Index. The fund had significantly more
exposure in oil and resources stocks than the index.
* Stocks in the fund that provided significant outperformance were
China COSCO Holdings Co., Ltd.,(3) Zijin Mining Group Co.,
Ltd.,(4) China Mobile Ltd.,(5) China Coal Energy Co.(6) and
Zhaojin Mining Industry Co., Ltd.(7)
WEAKNESSES
* The worst-performing countries/indices were Taiwan, Shenzhen B
shares and Singapore.
* The worst-performing sectors in the HSCI were technology, consumer
goods and financials. Although the fund was underweight
financials, the fund did have more exposure in consumer and
technology stocks relative to the index.
* Stocks that dragged down performance include Tianjin Development
Holdings Ltd.,(8) China Oilfield Services Ltd.,(8) China
Everbright Ltd.,(8) Guangzhou Shipyard International Co.(8) and
Luks Group Vietnam Holdings Co., Ltd.(8)
22
CHINA REGION OPPORTUNITY FUND
SECTOR WEIGHTINGS--CHINA REGION OPPORTUNITY FUND
AND HANG SENG COMPOSITE INDEX
(% OF INVESTMENTS AS OF DECEMBER 31, 2007)
CHINA REGION HANG SENG
OPPORTUNITY COMPOSITE OVER
FUND INDEX (UNDER)
% WEIGHTS % WEIGHTS % WEIGHT
SECTORS ------------ --------- --------
Oil & Resources 33.35 8.83 24.52
Financial 21.87 47.71 (25.84)
Consumer 17.26 7.45 9.81
Industrials 11.90 13.42 (1.52)
Technology 6.92 1.37 5.55
Telecom 5.46 21.22 (15.76)
Cash Equivalent 3.24 0.0 3.24
------ ------ ------
TOTAL 100.00 100.00 0.00
====== ====== ======
COUNTRY WEIGHTINGS--CHINA REGION OPPORTUNITY FUND
(% OF INVESTMENTS AS OF DECEMBER 31, 2007)
CHINA REGION
OPPORTUNITY
FUND
% WEIGHTS
COUNTRY* ------------
People's Republic of China 42.89
Hong Kong 30.11
U.S. & Canada 10.31
Singapore/Malaysia 5.74
Taiwan/Indonesia 5.27
Korea, Republic of 4.30
Other Foreign 1.38
------
TOTAL 100.00
======
<FN>
* Country distribution shown is based on domicile and not intended
to conform to the China region definition in the prospectus.
</FN>
From a macro perspective, the fund generally made the right sector
bets by being overweight materials, energy and underweight
financials. The bets on energy and materials were made as there
appeared to be little evidence of a slowdown in the emerging markets
so these sectors would benefit from growth. The underweight position
in financials was also the proper call as China sought to clamp down
on loan growth by raising rates and required reserves. What hurt the
fund was being overweight the technology and discretion sectors. The
Internet plays did not perform as expected
23
CHINA REGION OPPORTUNITY FUND
as valuations became stretched. The consumer names were hurt over
fears about weakness in the U.S. as these companies still depend on
exports for their revenue.
Having re-established positions in the China stocks during down
periods and with the bull market spreading to other lagging
countries in the region, the fund appears to be well positioned for
continued growth in the China region.
The level of turnover in the fund is a function of the volatility of
the markets in the region. In an effort to reduce turnover, a
return-on-capital criteria has been implemented that should help to
reduce turnover going forward.
CURRENT OUTLOOK
OPPORTUNITIES
* The economies in the region should show strong relative growth
against the U.S. Although a slowdown in the U.S. will have some
impact on growth in Southeast Asia, exports out of China are more
diversified than they have been in the past.
* The global infrastructure build-out taking place should continue
to be positive for commodities such as steel, copper, aluminum as
well as energy commodities.
THREATS
* The Chinese government has implemented policies such as raising
rates and increasing reserves in an effort to slow down the
economy. It is possible that the government may go too far in
their policies and cause growth to slow more than expected.
* The trade imbalance between the U.S. and China has not improved
significantly, and as 2008 is a Presidential election year,
anti-China rhetoric could pick up significantly.
(1)The China region is defined as any country that either shares a
border with China or is located in the South China Sea or the
East China Sea and includes: the People's Republic of China (PRC
or China), Bangladesh, Hong Kong, India, Indonesia, Kazakhstan,
Korea, Kyrgyzstan, Laos, Malaysia, Mongolia, Nepal, Pakistan,
Philippines, Singapore, Taiwan, Tajikistan, Thailand, and
Vietnam.
(2)M1 and M2 are measures of total money supplies. The M1 money
supply includes only checkable demand deposits. M2 includes
everything in M1 and also savings and other time deposits.
(3)This security comprised 1.23% of the total net assets of the fund
as of December 31, 2007.
24
CHINA REGION OPPORTUNITY FUND
(4)This security comprised 3.23% of the total net assets of the fund
as of December 31, 2007.
(5)This security comprised 5.26% of the total net assets of the fund
as of December 31, 2007.
(6)This security comprised 2.34% of the total net assets of the fund
as of December 31, 2007.
(7)This security comprised 2.49% of the total net assets of the fund
as of December 31, 2007.
(8)The fund did not hold this security as of December 31, 2007.
TOP 10 EQUITY HOLDINGS BASED ON TOTAL INVESTMENTS December 31, 2007
CHINA MOBILE LTD. 5.45%
CELLULAR TELECOMMUNICATIONS
---------------------------------------------------------------
ZIJIN MINING GROUP CO., LTD. 3.35%
GOLD MINING
---------------------------------------------------------------
CHINA LIFE INSURANCE CO., LTD. 3.19%
INSURANCE
---------------------------------------------------------------
ZHAOJIN MINING INDUSTRY CO., LTD. 2.58%
GOLD MINING
---------------------------------------------------------------
CHINA MERCHANTS BANK CO., LTD. 2.53%
BANKS
---------------------------------------------------------------
SUN HUNG KAI PROPERTIES LTD. 2.45%
REAL ESTATE COMPANIES
---------------------------------------------------------------
PT BUMI RESOURCES TBK 2.43%
COAL
---------------------------------------------------------------
CHINA COAL ENERGY CO. 2.43%
COAL
---------------------------------------------------------------
TENCENT HOLDINGS LTD. 2.37%
INTERNET
---------------------------------------------------------------
GOME ELECTRICAL APPLIANCES HOLDINGS, LTD. 2.35%
HOUSEHOLD APPLIANCES
---------------------------------------------------------------
TOTAL TOP TEN HOLDINGS 29.13%
25
GLOBAL RESOURCES FUND
MANAGEMENT TEAM'S PERSPECTIVE
INTRODUCTION
The Global Resources Fund is a diversified natural resources fund
with the principal objective of achieving long-term growth of
capital, while providing protection against inflation and monetary
instability. The fund invests in companies involved in the
exploration, production, transportation and processing of petroleum,
natural gas, industrial commodities, metals, minerals, paper and
forest products. It can invest in any part of the world.
PERFORMANCE GRAPH
GLOBAL RESOURCES FUND
[Global Resources Fund Graph]
Global S&P 500 S&P Energy &
Date Resources Fund Index Materials Index
12/31/97 $ 10,000.00 $ 10,000.00 $ 10,000.00
01/30/98 8,812.71 10,110.61 9,600.08
02/27/98 9,013.38 10,839.84 10,241.59
03/31/98 8,996.66 11,394.93 10,713.08
04/30/98 8,762.54 11,509.57 11,097.50
05/29/98 7,976.59 11,311.74 10,764.11
06/30/98 7,474.92 11,771.21 10,540.36
07/31/98 6,889.63 11,645.87 9,855.80
08/31/98 5,785.95 9,962.14 8,696.45
09/30/98 6,404.68 10,600.32 9,713.09
10/30/98 6,638.80 11,462.57 9,894.64
11/30/98 6,454.85 12,157.29 10,052.63
12/31/98 6,148.31 12,857.86 9,870.03
01/29/99 5,844.47 13,395.53 9,297.37
02/26/99 5,790.85 12,979.21 9,295.09
03/31/99 6,362.78 13,498.49 10,319.00
04/30/99 7,417.29 14,021.22 12,114.15
05/28/99 7,059.83 13,690.13 11,640.86
06/30/99 7,167.07 14,449.90 11,892.64
07/30/99 7,184.94 13,998.70 11,941.38
08/31/99 7,095.58 13,929.45 11,946.89
09/30/99 6,845.35 13,547.59 11,505.49
10/29/99 6,702.37 14,404.89 11,465.92
11/30/99 6,720.24 14,697.71 11,569.41
12/31/99 7,041.96 15,563.35 11,967.90
01/31/00 6,809.61 14,781.41 11,407.56
02/29/00 6,434.28 14,501.61 10,615.80
03/31/00 7,131.32 15,920.28 11,711.99
04/28/00 7,024.08 15,441.30 11,489.94
05/31/00 7,381.54 15,124.49 12,190.65
06/30/00 6,934.72 15,497.36 11,413.41
07/31/00 6,809.61 15,255.07 11,252.78
08/31/00 7,560.27 16,202.63 11,921.16
09/29/00 7,542.40 15,347.24 11,836.96
10/31/00 7,256.43 15,282.36 12,012.03
11/30/00 6,898.97 14,077.51 11,691.54
12/31/00 7,792.62 14,146.41 12,682.51
01/31/01 7,542.40 14,648.31 12,318.25
02/28/01 7,417.29 13,312.65 12,205.69
03/30/01 7,310.05 12,469.29 11,912.59
04/30/01 7,971.35 13,438.28 13,138.70
05/31/01 7,881.99 13,528.32 13,360.44
06/30/01 7,167.07 13,199.06 12,560.96
07/31/01 6,881.10 13,069.12 12,421.88
08/31/01 6,630.88 12,250.97 12,101.32
09/30/01 6,201.93 11,261.68 11,126.21
10/31/01 6,613.01 11,476.42 11,456.82
11/30/01 6,666.62 12,356.74 11,563.20
12/31/01 6,738.12 12,464.99 11,913.23
01/31/02 6,755.99 12,283.09 11,823.26
02/28/02 7,131.32 12,046.20 12,375.27
03/31/02 7,792.62 12,499.25 13,081.21
04/30/02 8,275.19 11,741.45 12,427.23
05/31/02 9,955.25 11,654.95 12,677.67
06/30/02 8,811.38 10,824.76 12,578.39
07/31/02 6,845.35 9,980.93 11,036.19
08/31/02 7,184.94 10,046.46 11,029.87
09/30/02 7,041.96 8,954.61 9,940.25
10/31/02 6,577.26 9,742.77 10,295.84
11/30/02 6,827.48 10,316.22 10,935.75
12/31/02 7,936.49 9,710.16 10,800.00
01/31/03 8,392.61 9,455.79 10,444.80
02/28/03 8,556.82 9,313.92 10,517.66
03/31/03 8,264.90 9,404.34 10,612.09
04/30/03 8,246.66 10,178.99 10,878.21
05/31/03 9,213.63 10,715.29 11,637.92
06/30/03 9,377.83 10,851.98 11,584.66
07/31/03 9,833.95 11,043.32 11,661.46
08/31/03 11,074.60 11,258.69 12,278.82
09/30/03 11,658.44 11,139.13 11,900.99
10/31/03 13,592.39 11,769.26 12,301.97
11/30/03 14,668.83 11,872.81 12,420.87
12/31/03 15,838.14 12,495.48 14,005.29
01/31/04 15,504.70 12,724.83 13,928.91
02/29/04 16,319.77 12,901.70 14,583.80
03/31/04 16,745.82 12,707.06 14,436.32
04/30/04 15,115.70 12,507.58 14,399.56
05/31/04 15,134.22 12,679.22 14,563.58
06/30/04 15,541.75 12,925.77 15,316.11
07/31/04 15,615.85 12,497.97 15,579.96
08/31/04 15,652.90 12,548.52 15,561.26
09/30/04 17,894.32 12,684.43 16,658.95
10/31/04 18,431.52 12,878.21 16,700.33
11/30/04 20,747.04 13,399.28 17,806.68
12/31/04 20,654.90 13,855.24 17,635.81
01/31/05 20,792.47 13,517.52 17,809.91
02/28/05 24,919.52 13,801.99 20,560.47
03/31/05 24,624.73 13,557.58 19,880.17
04/30/05 22,738.08 13,300.45 18,724.43
05/31/05 22,993.57 13,723.65 18,907.67
06/30/05 24,899.87 13,743.13 19,576.74
07/31/05 26,550.69 14,254.22 20,684.26
08/31/05 28,319.43 14,124.16 21,219.74
09/30/05 30,697.39 14,238.56 22,167.81
10/31/05 28,044.29 14,001.19 20,751.95
11/30/05 29,026.92 14,530.75 21,465.22
12/31/05 30,769.94 14,535.81 21,736.19
01/31/06 35,787.01 14,920.68 24,152.83
02/28/06 33,569.16 14,961.17 22,707.27
03/31/06 36,110.00 15,147.39 23,633.19
04/30/06 39,576.73 15,350.79 24,734.25
05/31/06 37,165.09 14,908.98 23,945.96
06/30/06 37,078.96 14,929.19 24,307.90
07/31/06 37,272.75 15,021.28 24,910.51
08/31/06 36,906.70 15,378.68 24,478.09
09/30/06 33,483.03 15,774.99 24,007.97
10/31/06 35,657.81 16,289.03 25,208.22
11/30/06 38,155.58 16,598.78 27,017.26
12/31/06 37,596.42 16,831.63 26,726.28
01/31/07 36,988.39 17,086.18 26,751.35
02/28/07 37,216.40 16,751.99 26,566.98
03/31/07 38,736.47 16,939.36 27,855.29
04/30/07 41,396.59 17,689.70 29,038.34
05/31/07 44,082.05 18,306.98 30,988.21
06/30/07 44,842.09 18,002.84 31,315.43
07/31/07 45,298.11 17,444.67 31,270.79
08/31/07 43,068.67 17,706.17 31,403.13
09/30/07 49,326.29 18,368.35 33,918.13
10/31/07 54,570.54 18,660.53 34,590.87
11/30/07 49,858.32 17,880.40 33,175.84
12/31/07 52,616.51 17,756.35 34,985.70
AVERAGE ANNUAL PERFORMANCE For the Periods Ended
December 31, 2007
Six Month One Year Five Year Ten Year
Global Resources Fund 17.34% 39.95% 45.95% 18.05%
-------------------------------------------------------------------------
S&P 500 Index (1.37)% 5.49% 12.82% 5.91%
-------------------------------------------------------------------------
S&P Energy and Materials
Index 11.72% 30.90% 26.48% 13.33%
Performance data quoted above is historical. Past performance is no
guarantee of future results. Current performance may be higher or lower
than the performance data quoted. Investment return and principal value
of an investment will fluctuate so that an investor's shares, when
redeemed, may be worth more or less than their original cost.
The graph and table do not reflect the deduction of taxes that a
shareholder would pay on fund distributions or the redemption of fund
shares.
The S&P 500 Index is a widely recognized capitalization-weighted index of
500 common stock prices in U.S. companies. The S&P Energy and Materials
Index is a combination of the S&P Energy Index and the S&P Materials
Index calculated on a 70% and 30% weighting, respectively, with monthly
rebalancing of weights. The returns for the indexes reflect no deduction
for fees, expenses or taxes.
26
GLOBAL RESOURCES FUND
PERFORMANCE COMMENTARY
For the six months ending December 31, 2007, the Global Resources
Fund returned 17.34 percent, strong relative performance compared to
the fund's benchmark, a 70/30 percent blend of the S&P Energy Index
and S&P Materials Index, which posted a total return of 11.72
percent. The natural resources sector overall continued to
outperform the broader markets: the S&P 500 returned -1.37 percent
and the Nasdaq Composite Index(1) returned 2.29 percent in the last
six months of the year.
SIX MONTHS IN REVIEW - ECONOMIC AND POLITICAL ISSUES THAT AFFECTED
THE FUND
Critical drivers over the past six months included:
* Another year of above-trend global economic growth, particularly
in developing economies such as China and India, supported robust
demand for commodities and resulted in record nominal high prices
for crude oil, wheat, soybeans and other commodities.
* Pension funds and institutional investors continue to diversify
their holdings into commodities and other tangible assets as a
hedge against the inflationary effects of a depreciating U.S.
dollar and instability within the U.S. banking system.
* The inability of OPEC and non-OPEC crude oil producers to increase
global spare production capacity continues to magnify geopolitical
tensions in exporting countries. This has helped drive oil prices
to new highs. Energy industry executives continue to express
long-term supply concerns due to rising costs, access to global
exploration opportunities, and labor shortages.
A residential housing decline and subsequent liquidity concerns due
to subprime lending problems in the financial sector have weighed on
the U.S. economic outlook over the past six months. In an effort to
stimulate the economy, the Federal Reserve cut its federal funds
rate three times between August 2007 and the calendar year-end to
provide liquidity to the banking sector. Global economic growth over
the past year has remained above trend but a slower pace of growth
appears likely for 2008 due to weakness in the U.S. economy. Global
GDP growth for 2007 is forecast to exceed 5 percent before slipping
to 4.7 percent in 2008. Developing Asia is expected to continue to
lead the globe with a GDP growth of 8.5 percent in 2008.
The Global Resources Fund has a significant portion of its assets
invested in Canadian-domiciled companies with predominantly global
operations. The S&P/TSX Composite Index(2) returned 7.8 percent in
the second half of 2007 as a surging Canadian dollar created cost
pressures and headwinds for manufacturers and exporters.
27
GLOBAL RESOURCES FUND
The fund may invest in equity derivatives including warrants and
exchange-traded options to manage risk and volatility as well as for
speculative purposes when we identify opportunities to exploit the
pricing of equity derivatives relative to the underlying equity. An
example of this strategy is the strong relative performance of
Silver Wheaton Corp.(3) class A warrants which gained 69.6 percent
during the period while the common stock of Silver Wheaton Corp.
gained 42.9 percent.
INVESTMENT HIGHLIGHTS
STRENGTHS
* The price of crude oil gained 36 percent in the second half of the
year to nearly $100 a barrel as fourth-quarter OECD inventories in
the three major markets declined by the largest amount since 1999.
* The fund benefited from exposure to high impact crude oil
exploration and production companies such as Petroleo Brasileiro
S.A.,(4) which made the largest oil discovery in 30 years off the
coast of Brazil.
* Corn and wheat gained 38 percent and 52 percent, respectively,
during the period on low global inventories and increased ethanol
demand. Accordingly, the fund's holdings in fertilizer and
agricultural chemical companies, such as Monsanto Co.,(5) Potash
Corporation of Saskatchewan, Inc.(6) and Agrium, Inc.,(7) were
strong performers in the second half of the year, and the fund
added to these positions during the period.
* Fund performance was positively affected by gold and silver
equities, including holdings such as Yamana Gold, Inc.(8) and
Silvercorp Metals, Inc.,(9) as the price of gold climbed 28
percent and silver gained 19 percent in the time period.
* Bulk commodities like coal and iron ore surged during the period
due to further port congestion at global terminals and unrelenting
demand from China and India. This led to large gains for
international mining holdings such as Rio Tinto plc,(10) BHP
Billiton Ltd.(11) and Companhia Vale do Rio Doce.(12)
WEAKNESSES
* The price of copper and other base metals on the London Metals
Exchange declined 15 percent on average in the second half of
2007. Accordingly, base metal equities such as Inmet Mining
Corp.(13) underperformed the S&P Materials Index during the
period.
* Certain Canadian energy stocks held by the fund underperformed
U.S. energy stocks during the period, including OPTI Canada,
Inc.(14) and Harvest Energy Trust,(15) because of declining
profitability related to a stronger Canadian dollar and due to the
Alberta provincial government's decision to increase tax and
royalty rates. The fund reduced its
28
GLOBAL RESOURCES FUND
weighting of Canadian energy equities because of uncertainty
regarding energy policy in Canada.
* The fund was negatively affected by equity positions in refining
equities, such as Valero Energy Corp.(16) and Holly Corp.,(17)
which declined by 20 percent during the period as margins
compressed on higher oil prices and slower seasonal demand.
CURRENT OUTLOOK
OPPORTUNITIES
* A recent Platt's report shows that energy exploration,
development, refining and transportation will require as much as
$21.4 trillion in capital expenditures between now and 2030 to
meet sharply growing global demand for hydrocarbons.
* The Environmental Protection Agency increased the amount of
renewable motor fuels, such as ethanol, that will have to be sold
in the U.S. market next year. Renewable fuels will have to make up
4.66 percent of the 144.5 billion gallons of gasoline expected to
be consumed in the U.S. during 2008.
* Power companies worldwide would need to build some 30 nuclear
plants a year between 2013 and 2030, in addition to using other
clean or renewable technologies, to meet growing demand while
achieving emissions cuts, according to the head of the
International Energy Agency.
* The investment committee of the California Public Employees'
Retirement System, the nation's largest government pension fund
with roughly $260 billion in assets, has voted to transfer about
$28 billion over three years to alternative investments, including
commodities.
THREATS
* Projections for slower economic growth in the U.S. and other
developed nations may curb demand for commodities and other raw
materials in emerging market economies if current monetary and
fiscal policies are unable to prevent a recession.
* The OECD and U.N.'s Food and Agriculture Organization released a
joint study of the unintended global effects of growing food for
fuel. Food-importing nations are at much greater risk of rising
prices due to more crops being diverted to the production of
fuels.
* Global warming may produce stronger hurricanes that could disrupt
U.S. oil production in the Gulf of Mexico, damaging ports and
pipelines along the coast that move fuel supplies, according to a
new government report.
(1)The Nasdaq Composite Index is a capitalization-weighted index of
all Nasdaq National Market and SmallCap stocks.
29
GLOBAL RESOURCES FUND
(2)The S&P/TSX Composite Index is a capitalization-weighted index
designed to measure market activity of stocks listed on the
Toronto Stock Exchange.
(3)This security comprised 2.39% of the total net assets of the fund
as of December 31, 2007.
(4)This security comprised 3.23% of the total net assets of the fund
as of December 31, 2007.
(5)This security comprised 1.25% of the total net assets of the fund
as of December 31, 2007.
(6)This security comprised 2.23% of the total net assets of the fund
as of December 31, 2007.
(7)This security comprised 1.51% of the total net assets of the fund
as of December 31, 2007.
(8)This security comprised 1.97% of the total net assets of the fund
as of December 31, 2007.
(9)This security comprised 0.90% of the total net assets of the fund
as of December 31, 2007.
(10)This security comprised 2.61% of the total net assets of the
fund as of December 31, 2007.
(11)This security comprised 1.28% of the total net assets of the
fund as of December 31, 2007.
(12)This security comprised 1.20% of the total net assets of the
fund as of December 31, 2007.
(13)This security comprised 1.79% of the total net assets of the
fund as of December 31, 2007.
(14)The fund did not hold this security as of December 31, 2007.
(15)This security comprised 0.29% of the total net assets of the
fund as of December 31, 2007.
(16)This security comprised 1.24% of the total net assets of the
fund as of December 31, 2007.
(17)This security comprised 0.90% of the total net assets of the
fund as of December 31, 2007.
PORTFOLIO PROFILE December 31, 2007
Country Distribution* % of Investments
---------------------------------------------------------------
United States 46.12%
---------------------------------------------------------------
Canada 31.16%
---------------------------------------------------------------
Brazil 5.10%
---------------------------------------------------------------
United Kingdom 4.68%
---------------------------------------------------------------
Australia 2.62%
---------------------------------------------------------------
Netherlands 2.58%
---------------------------------------------------------------
People's Republic of China 2.50%
---------------------------------------------------------------
Indonesia 1.31%
---------------------------------------------------------------
Other Foreign 3.93%
---------------------------------------------------------------
* Country distribution shown is based on domicile not economic
ties to a country, which may be different.
30
GLOBAL RESOURCES FUND
TOP 10 EQUITY HOLDINGS BASED ON TOTAL INVESTMENTS December 31, 2007
MCDERMOTT INTERNATIONAL, INC. 3.50%
OIL & GAS EQUIPMENT & SERVICES
---------------------------------------------------------------
PETROLEO BRASILEIRO S.A. 3.26%
OIL & GAS - INTEGRATED
---------------------------------------------------------------
OCCIDENTAL PETROLEUM CORP. 2.82%
OIL & GAS - INTEGRATED
---------------------------------------------------------------
RIO TINTO PLC 2.64%
GENERAL METAL & MINERAL MINING
---------------------------------------------------------------
SILVER WHEATON CORP. 2.41%
SILVER MINING
---------------------------------------------------------------
MARATHON OIL CORP. 2.41%
OIL & GAS - INTEGRATED
---------------------------------------------------------------
SCHLUMBERGER LTD. 2.25%
OIL & GAS EQUIPMENT & SERVICES
---------------------------------------------------------------
POTASH CORPORATION OF SASKATCHEWAN, INC. 2.25%
AGRICULTURAL CHEMICALS & FERTILIZERS
---------------------------------------------------------------
FREEPORT-MCMORAN COPPER & GOLD, INC. 2.07%
GOLD & COPPER MINING
---------------------------------------------------------------
YAMANA GOLD, INC. 1.99%
GOLD MINING
---------------------------------------------------------------
TOTAL TOP TEN HOLDINGS 25.60%
31
GLOBAL RESOURCES FUND
PORTFOLIO ALLOCATION BY INDUSTRY SECTOR
BASED ON TOTAL INVESTMENTS December 31, 2007
[Global Resources Fund Pie Chart]
Cash Equivalent 3.1%
Oil & Gas Exploration & Production 14.7%
Oil & Gas - Integrated 14.7%
Oil & Gas Equipment & Services 13.8%
Oil & Gas Drilling 4.7%
Other Energy 2.0%
Precious Metals 17.9%
Metals & Mining 16.1%
General Basic Materials 9.8%
Other Sectors 3.2%
Energy:
Oil & Gas Exploration & Production 14.7%
Oil & Gas - Integrated (includes 14.7%
Refining and Marketing)
Oil & Gas Equipment & Services 13.8%
Oil & Gas Drilling 4.7%
Other Energy 2.0%
Total Energy 49.9%
Basic Materials:
Precious Metals (includes Gold Mining, 17.9%
Silver Mining and Platinum Group
Metals)
Metals & Mining (includes Copper, Zinc, 16.1%
Nickel and Coal)
General Basic Materials 9.8%
Total Basic Materials 43.8%
Other Sectors 3.2%
Cash Equivalent 3.1%
-----
Total Investments 100.0%
=====
32
PRECIOUS METALS AND MINERALS FUNDS
MANAGEMENT TEAM'S PERSPECTIVE
INTRODUCTION
The World Precious Minerals and Gold and Precious Metals Funds
pursue an objective of long-term capital growth through investments
in gold and precious mineral and metal companies. The Gold and
Precious Metals Fund also pursues current income as a secondary
objective and focuses on established, gold-producing mines. The
World Precious Minerals Fund focuses on equity securities of
companies principally engaged in the exploration, mining, and
processing of precious minerals such as gold, silver, platinum, and
diamonds. Although the fund has greater latitude to invest its
assets in different precious minerals, it currently remains focused
on the gold sector.
PERFORMANCE GRAPHS
WORLD PRECIOUS MINERALS FUND
[World Precious Minerals Fund Graph]
World Precious S&P 500 AMEX Gold
Date Minerals Fund Index BUGS Index
12/31/97 $ 10,000.00 $ 10,000.00 $ 10,000.00
01/30/98 10,860.99 10,110.61 10,149.74
02/27/98 10,287.00 10,839.84 10,437.21
03/31/98 10,986.55 11,394.93 11,388.60
04/30/98 11,443.95 11,509.57 12,283.19
05/29/98 9,820.63 11,311.74 10,340.70
06/30/98 8,843.05 11,771.21 9,502.05
07/31/98 8,224.22 11,645.87 8,476.43
08/31/98 6,430.49 9,962.14 6,360.03
09/30/98 8,878.92 10,600.32 9,327.35
10/30/98 8,762.33 11,462.57 8,743.44
11/30/98 8,179.37 12,157.29 8,182.45
12/31/98 8,423.32 12,857.86 7,083.66
01/29/99 8,064.12 13,395.53 7,047.64
02/26/99 7,893.49 12,979.21 6,969.10
03/31/99 7,731.85 13,498.49 6,713.20
04/30/99 8,656.80 14,021.22 8,121.51
05/28/99 7,076.31 13,690.13 6,913.91
06/30/99 6,995.49 14,449.90 7,344.72
07/30/99 6,600.36 13,998.70 7,042.10
08/31/99 6,878.74 13,929.45 7,417.34
09/30/99 8,665.78 13,547.59 9,097.65
10/29/99 7,776.75 14,404.89 8,375.27
11/30/99 7,435.51 14,697.71 7,912.24
12/31/99 7,354.69 15,563.35 7,790.17
01/31/00 6,528.52 14,781.41 6,927.29
02/29/00 6,636.28 14,501.61 7,077.64
03/31/00 6,133.40 15,920.28 6,554.02
04/28/00 5,828.07 15,441.30 6,207.53
05/31/00 5,648.47 15,124.49 6,015.62
06/30/00 5,774.19 15,497.36 6,146.92
07/31/00 5,163.55 15,255.07 5,227.83
08/31/00 5,370.09 16,202.63 5,344.60
09/29/00 4,822.30 15,347.24 4,930.79
10/31/00 4,310.44 15,282.36 4,075.23
11/30/00 4,265.54 14,077.51 4,452.63
12/31/00 4,553.80 14,146.41 4,330.72
01/31/01 4,508.71 14,648.31 5,041.06
02/28/01 4,499.70 13,312.65 5,821.42
03/30/01 4,202.12 12,469.29 5,260.15
04/30/01 4,598.89 13,438.28 5,935.12
05/31/01 4,779.24 13,528.32 6,634.76
06/30/01 4,761.20 13,199.06 6,703.43
07/31/01 4,490.68 13,069.12 6,435.59
08/31/01 4,553.80 12,250.97 6,982.68
09/30/01 4,815.31 11,261.68 7,607.43
10/31/01 4,752.18 11,476.42 7,194.16
11/30/01 4,725.13 12,356.74 6,791.33
12/31/01 4,896.46 12,464.99 6,925.04
01/31/02 5,753.12 12,283.09 8,078.51
02/28/02 6,303.18 12,046.20 9,160.81
03/31/02 7,331.17 12,499.25 10,507.96
04/30/02 8,097.65 11,741.45 11,434.32
05/31/02 11,398.03 11,654.95 15,041.90
06/30/02 9,405.18 10,824.76 13,508.89
07/31/02 6,763.07 9,980.93 11,424.13
08/31/02 7,700.88 10,046.46 13,725.08
09/30/02 7,754.99 8,954.61 13,444.83
10/31/02 6,727.00 9,742.77 11,827.48
11/30/02 6,799.14 10,316.22 12,376.21
12/31/02 8,981.01 9,710.16 15,502.73
01/31/03 9,323.59 9,455.79 15,392.69
02/28/03 8,981.01 9,313.92 14,143.19
03/31/03 8,462.52 9,404.34 13,245.45
04/30/03 8,240.31 10,178.99 13,364.53
05/31/03 8,842.13 10,715.29 15,174.59
06/30/03 9,027.31 10,851.98 16,028.94
07/31/03 9,610.61 11,043.32 17,599.84
08/31/03 11,267.93 11,258.69 20,822.62
09/30/03 12,138.26 11,139.13 21,000.67
10/31/03 14,851.08 11,769.26 23,248.06
11/30/03 17,304.66 11,872.81 26,718.71
12/31/03 17,306.26 12,495.48 26,140.55
01/31/04 16,059.71 12,724.83 23,223.78
02/29/04 16,766.09 12,901.70 24,229.12
03/31/04 18,230.79 12,707.06 25,437.18
04/30/04 14,252.22 12,507.58 19,291.84
05/31/04 14,719.67 12,679.22 21,581.70
06/30/04 14,210.66 12,925.77 20,396.72
07/31/04 13,525.06 12,497.97 20,098.64
08/31/04 14,106.78 12,548.52 22,423.91
09/30/04 16,288.25 12,684.43 25,029.61
10/31/04 16,662.21 12,878.21 25,285.99
11/30/04 18,220.40 13,399.28 25,658.20
12/31/04 17,473.47 13,855.24 23,340.60
01/31/05 16,565.62 13,517.52 21,865.73
02/28/05 18,274.52 13,801.99 23,372.39
03/31/05 17,420.07 13,557.58 21,954.32
04/30/05 15,070.33 13,300.45 19,378.06
05/31/05 15,016.93 13,723.65 20,230.72
06/30/05 16,554.94 13,743.13 21,950.27
07/31/05 16,651.06 14,254.22 21,443.99
08/31/05 17,665.72 14,124.16 22,468.54
09/30/05 20,164.98 14,238.56 26,782.27
10/31/05 18,477.45 14,001.19 24,356.87
11/30/05 20,325.19 14,530.75 26,617.94
12/31/05 22,870.32 14,535.81 30,318.82
01/31/06 28,295.27 14,920.68 37,511.54
02/28/06 27,574.95 14,961.17 33,526.76
03/31/06 31,514.22 15,147.39 36,900.26
04/30/06 35,363.46 15,350.79 41,580.35
05/31/06 32,560.95 14,908.98 36,643.68
06/30/06 32,482.16 14,929.19 37,071.28
07/31/06 33,112.45 15,021.28 36,216.82
08/31/06 33,787.75 15,378.68 38,431.52
09/30/06 30,141.10 15,774.99 33,156.79
10/31/06 32,437.14 16,289.03 35,203.56
11/30/06 35,802.41 16,598.78 39,256.72
12/31/06 34,830.37 16,831.63 37,468.27
01/31/07 34,804.81 17,086.18 37,249.34
02/28/07 35,315.90 16,751.99 37,693.43
03/31/07 34,766.48 16,939.36 37,472.62
04/30/07 36,389.17 17,689.70 37,710.01
05/31/07 36,542.50 18,306.98 37,113.77
06/30/07 36,210.30 18,002.84 36,591.55
07/31/07 37,577.45 17,444.67 38,337.00
08/31/07 33,309.89 17,706.17 36,376.02
09/30/07 40,426.74 18,368.35 43,700.48
10/31/07 47,313.59 18,660.53 48,385.57
11/30/07 40,861.16 17,880.40 45,202.13
12/31/07 42,847.27 17,756.35 45,586.76
AVERAGE ANNUAL PERFORMANCE For the Periods Ended
December 31, 2007
Six Month One Year Five Year Ten Year
World Precious Minerals Fund 18.33% 23.02% 36.66% 15.65%
-------------------------------------------------------------------------
S&P 500 Index (1.37)% 5.49% 12.82% 5.91%
-------------------------------------------------------------------------
AMEX Gold BUGS Index 24.58% 21.67% 24.06% 16.37%
Performance data quoted above is historical. Past performance is no
guarantee of future results. Current performance may be higher or lower
than the performance data quoted. Investment return and principal value
of an investment will fluctuate so that an investor's shares, when
redeemed, may be worth more or less than their original cost.
The graph and table do not reflect the deduction of taxes that a
shareholder would pay on fund distributions or the redemption of fund
shares.
The S&P 500 Index is a widely recognized capitalization-weighted index of
500 common stock prices in U.S. companies. The AMEX Gold BUGS Index is a
modified equal-dollar weighted index of companies involved in major gold
mining. The returns for the indexes reflect no deduction for fees,
expenses or taxes.
33
PRECIOUS METALS AND MINERALS FUNDS
GOLD AND PRECIOUS METALS FUND
[Gold and Precious Metals Funds Graph]
Gold and Precious S&P 500 Philadelphia Stock Exchange
Date Metals Fund Index Gold & Silver Index
12/31/97 $ 10,000.00 $ 10,000.00 $ 10,000.00
01/30/98 10,000.00 10,110.61 10,105.14
02/27/98 9,122.81 10,839.84 10,176.22
03/31/98 9,298.25 11,394.93 11,021.31
04/30/98 9,824.56 11,509.57 11,869.86
05/29/98 7,894.74 11,311.74 10,099.94
06/30/98 6,649.12 11,771.21 9,697.79
07/31/98 6,701.75 11,645.87 8,513.98
08/31/98 5,157.89 9,962.14 6,623.62
09/30/98 7,192.98 10,600.32 10,159.65
10/30/98 7,035.09 11,462.57 10,222.42
11/30/98 6,596.49 12,157.29 9,636.48
12/31/98 6,701.75 12,857.86 8,825.20
01/29/99 6,403.51 13,395.53 8,592.92
02/26/99 6,263.16 12,979.21 8,228.68
03/31/99 6,228.07 13,498.49 8,132.36
04/30/99 6,929.82 14,021.22 10,003.59
05/28/99 5,842.11 13,690.13 8,314.19
06/30/99 6,000.00 14,449.90 9,141.91
07/30/99 5,614.04 13,998.70 8,587.37
08/31/99 5,912.28 13,929.45 9,294.40
09/30/99 7,526.32 13,547.59 11,077.64
10/29/99 6,736.84 14,404.89 9,601.77
11/30/99 6,456.14 14,697.71 9,271.17
12/31/99 6,526.32 15,563.35 9,399.78
01/31/00 5,736.84 14,781.41 8,294.83
02/29/00 5,771.93 14,501.61 8,325.03
03/31/00 5,333.33 15,920.28 7,878.63
04/28/00 4,912.28 15,441.30 7,634.60
05/31/00 4,912.28 15,124.49 7,879.52
06/30/00 5,122.81 15,497.36 8,095.56
07/31/00 4,631.58 15,255.07 7,120.94
08/31/00 4,912.28 16,202.63 7,379.75
09/29/00 4,596.49 15,347.24 7,040.12
10/31/00 4,140.35 15,282.36 6,186.93
11/30/00 4,210.53 14,077.51 6,667.76
12/31/00 4,578.95 14,146.41 7,282.59
01/31/01 4,526.32 14,648.31 6,921.37
02/28/01 4,631.58 13,312.65 7,481.03
03/30/01 4,210.53 12,469.29 6,779.37
04/30/01 4,771.93 13,438.28 7,856.78
05/31/01 4,982.46 13,528.32 8,158.48
06/30/01 4,964.91 13,199.06 7,606.20
07/31/01 4,596.49 13,069.12 7,579.12
08/31/01 4,719.30 12,250.97 8,113.22
09/30/01 4,912.28 11,261.68 8,291.49
10/31/01 4,842.11 11,476.42 7,825.82
11/30/01 4,807.02 12,356.74 7,562.23
12/31/01 5,087.72 12,464.99 7,832.91
01/31/02 5,929.82 12,283.09 8,825.88
02/28/02 6,789.47 12,046.20 9,410.33
03/31/02 7,754.39 12,499.25 10,243.62
04/30/02 8,526.32 11,741.45 10,687.24
05/31/02 11,298.25 11,654.95 12,204.20
06/30/02 9,263.16 10,824.76 10,356.97
07/31/02 6,842.11 9,980.93 8,774.32
08/31/02 7,912.28 10,046.46 10,143.41
09/30/02 8,140.35 8,954.61 10,185.58
10/31/02 7,017.54 9,742.77 9,265.45
11/30/02 7,087.72 10,316.22 9,256.69
12/31/02 9,228.07 9,710.16 11,228.42
01/31/03 9,456.14 9,455.79 11,263.53
02/28/03 8,859.65 9,313.92 10,598.75
03/31/03 8,298.25 9,404.34 9,860.78
04/30/03 7,929.82 10,178.99 9,626.03
05/31/03 8,824.56 10,715.29 10,843.36
06/30/03 9,087.72 10,851.98 11,613.07
07/31/03 9,561.40 11,043.32 11,980.73
08/31/03 11,122.81 11,258.69 13,487.56
09/30/03 11,614.04 11,139.13 13,513.34
10/31/03 13,421.05 11,769.26 14,550.28
11/30/03 15,947.37 11,872.81 16,280.56
12/31/03 15,417.94 12,495.48 16,163.89
01/31/04 13,675.50 12,724.83 14,207.09
02/29/04 14,185.91 12,901.70 14,862.29
03/31/04 15,558.74 12,707.06 15,642.01
04/30/04 11,950.66 12,507.58 12,220.17
05/31/04 12,918.68 12,679.22 13,413.12
06/30/04 12,320.27 12,925.77 12,888.00
07/31/04 11,598.65 12,497.97 12,997.35
08/31/04 12,232.27 12,548.52 14,189.77
09/30/04 13,992.30 12,684.43 15,272.00
10/31/04 14,168.31 12,878.21 15,501.46
11/30/04 15,241.93 13,399.28 16,022.15
12/31/04 14,425.47 13,855.24 14,920.29
01/31/05 13,735.17 13,517.52 13,735.71
02/28/05 14,690.97 13,801.99 14,894.70
03/31/05 13,770.57 13,557.58 14,136.64
04/30/05 11,965.18 13,300.45 12,604.23
05/31/05 12,230.68 13,723.65 13,040.94
06/30/05 13,575.87 13,743.13 14,060.32
07/31/05 13,682.07 14,254.22 13,729.41
08/31/05 14,602.47 14,124.16 14,510.56
09/30/05 16,691.07 14,238.56 17,134.85
10/31/05 15,664.47 14,001.19 16,151.62
11/30/05 16,956.57 14,530.75 17,421.33
12/31/05 19,156.78 14,535.81 19,478.67
01/31/06 23,865.41 14,920.68 23,470.26
02/28/06 22,612.16 14,961.17 20,305.29
03/31/06 25,852.70 15,147.39 21,594.84
04/30/06 29,737.77 15,350.79 24,120.77
05/31/06 27,571.44 14,908.98 21,771.98
06/30/06 27,714.67 14,929.19 21,953.52
07/31/06 28,269.68 15,021.28 21,701.98
08/31/06 28,896.30 15,378.68 22,476.63
09/30/06 25,781.09 15,774.99 19,706.83
10/31/06 27,338.70 16,289.03 21,082.94
11/30/06 30,042.13 16,598.78 22,938.79
12/31/06 28,770.98 16,831.63 21,918.10
01/31/07 28,466.62 17,086.18 21,569.37
02/28/07 28,609.85 16,751.99 21,548.29
03/31/07 27,464.02 16,939.36 21,164.09
04/30/07 27,589.35 17,689.70 21,190.94
05/31/07 27,464.02 18,306.98 21,629.17
06/30/07 26,837.40 18,002.84 21,048.30
07/31/07 27,804.19 17,444.67 23,042.98
08/31/07 25,745.28 17,706.17 21,831.64
09/30/07 31,653.45 18,368.35 26,179.71
10/31/07 36,254.66 18,660.53 29,201.03
11/30/07 32,727.66 17,880.40 26,577.91
12/31/07 33,635.99 17,756.35 26,936.31
AVERAGE ANNUAL PERFORMANCE For the Periods Ended
December 31, 2007
Six Month One Year Five Year Ten Year
Gold and Precious Metals
Fund 25.33% 16.91% 29.50% 12.89%
-------------------------------------------------------------------------
S&P 500 Index (1.37)% 5.49% 12.82% 5.91%
-------------------------------------------------------------------------
Philadelphia Stock Exchange
Gold & Silver Index 27.97% 22.90% 19.11% 10.41%
Performance data quoted above is historical. Past performance is no
guarantee of future results. Current performance may be higher or lower
than the performance data quoted. Investment return and principal value
of an investment will fluctuate so that an investor's shares, when
redeemed, may be worth more or less than their original cost.
The graph and table do not reflect the deduction of taxes that a
shareholder would pay on fund distributions or the redemption of fund
shares.
The S&P 500 Index is a widely recognized capitalization-weighted index of
500 common stock prices in U.S. companies. The Philadelphia Stock
Exchange Gold & Silver Index is a capitalization-weighted index which
includes the leading companies involved in the mining of gold and silver.
The returns for the indexes reflect no deduction for fees, expenses or
taxes.
PERFORMANCE COMMENTARY
For the six months ending December 31, 2007, the World Precious
Minerals Fund returned 18.33 percent. The AMEX Gold BUGS Index
(HUI), World Precious Minerals Fund's benchmark, gained 24.58
percent. The Gold and Precious Metals Fund returned 25.33 percent
while the Philadelphia Stock Exchange Gold & Silver (XAU) Index,
Gold and Precious Metals Fund's benchmark, returned 27.97 percent.
Both funds underperformed their benchmarks due to our underweighting
of the limited number of senior large capitalization gold stocks
that dominate the respective indices. Several of these senior
producers were among the best performers
34
PRECIOUS METALS AND MINERALS FUNDS
in the six-month period as investors emphasized liquidity. Spot gold
closed at $833.92, up $184.27 or 28.36 percent for the same period.
In contrast, the S&P 500 Index posted a negative return of 1.37
percent while the trade-weighted U.S. Trade Weighted Dollar
Index(1) tumbled 6.23 percent over the past six months. Over the
same period, the yield on the 90-day Treasury fell from 4.81 percent
to 3.24 percent.
Our investment process is an active management style versus a more
passive indexing approach. This has allowed us to create value for
our shareholders. The critical factors which we believe generated
our superior relative performance are:
1. We focus on mid-cap unhedged gold producers.
2. We may make concentrated investments in certain companies. The
top ten companies held in the Gold and Precious Metals and the
World Precious Minerals Funds represented roughly 50 percent
and 45 percent, respectively, of total investments. Thus our
funds' returns are more reflective of our ability to identify
attractive investment opportunities versus unmanaged stock
index returns.
3. We invested in companies reflecting the three critical growth
drivers:
(a) Increasing reserves
(b) Increasing production
(c) Increasing cash flow
4. We looked for undervalued junior gold companies with
inexpensive resource ounces in the ground.
5. We wanted to own companies wherein a rising gold price would
greatly increase their reserve base and net asset value.
6. We searched for companies that were undervalued on a relative
peer group basis for several fundamental metrics that included
ounces per share, production per share, net asset value per
share and cash flow multiples.
7. We use statistical models to manage the price risk of the
portfolios, looking for significant moves where the probability
of a price reversal is high, and adjust our cash position
accordingly. As a consequence, we may run defensively
positioned portfolios with high cash levels. We may also
balance the fund with warrant or option positions. At the close
of the period, warrants and cash equivalents (repurchase
agreements) represented 18.71 percent and 20.26 percent,
respectively, of net assets of the Gold and Precious Metals
Fund. For the World Precious Minerals Fund, warrants and cash
equivalents represented 21.60 percent and 10.02 percent,
respectively, of net assets.
35
PRECIOUS METALS AND MINERALS FUNDS
SIX MONTHS IN REVIEW - ECONOMIC AND POLITICAL ISSUES THAT AFFECTED
THE FUNDS
Critical drivers for the six-months include:
* Based on estimated 2007 gold production figures for South Africa
and China, it now looks as if China will surpass South Africa and
become the world's largest gold producer. Gold production in China
in the first seven months of 2007 grew 15.44 percent over the same
period in the prior year and was the biggest rise in the past
decade. A Chinese news release indicated that increased capacity
in the gold mining industry will keep China's gold output climbing
even if prices decline in the near future. The average cost of
producing an ounce of gold in China is $536 versus the global
average of $401.
* September quarterly reports indicated that China's appetite for
jewelry consumption gained 5.5 percent while investment demand
soared 46 percent. As of the December quarter, the World Gold
Council highlighted that it expects gold demand to set a new
record in China this year as robust economic growth and slightly
higher inflation numbers have raised demand for the precious
metal.
* A recent Smart Money story highlighted the investment structure of
the Harvard and Yale endowments which emphasized their use of
nontraditional asset classes. Real assets such as commodities,
real estate, oil and gas comprised more than 25 percent of their
portfolios.
* Mining companies continue to struggle to meet forecasted
production targets and raise reserve levels. Recently, the CEO of
Barrick Gold Corp.,(2) the world's largest gold producer,
commented that global mine supply is going to fall at a much
faster rate than people generally believe. New mine production
will be hindered by much longer time frames to get the new mines
into production.
* On the corporate activity side, Yamana Gold, Inc.(3) and Northern
Orion Resources, Inc.(4) entered into a merger agreement and
recently won shareholder approval in an ongoing attempt to acquire
the remaining common shares of Meridian Gold, Inc.(4) In addition,
the world's largest gold producer, Newmont Mining Corp.,(5)
outlined plans to significantly restructure itself, which should
provide opportunities to advance certain projects in a more timely
manner as more focus is brought upon having assets perform. This
restructuring plan highlights that even though the price of gold
has risen significantly in this cycle, the assets have not
delivered the returns that management expected. The
merger/takeover announcement highlights the desire to acquire
high-margin, cash-rich assets.
36
PRECIOUS METALS AND MINERALS FUNDS
INVESTMENT HIGHLIGHTS
STRENGTHS
* With gold trading well above $800 per ounce and oil up over $90
per barrel, apparently finding support at these levels, sentiment
towards stronger gold prices appears intact. The gold price is
typically the biggest influence on the price of gold mining
companies.
* RBC Dominion Securities forecast that gold equities should
outperform gold bullion into 2008, which generated more interest
in the equities in the second half of 2007.
* The U.S. Trade Weighted Dollar Index continued to fall, losing
6.23 percent over the last six months. Demand for gold generally
rises when the dollar is declining, and this demand tends to drive
up the gold price.
WEAKNESSES
* While the price of gold continues to soar, the junior mining
sector has not fared as well. As a good barometer of the Canadian
junior mining sector, the Sprott Precious Metals Fund is down
about 20 percent for 2007; resourceinvestor.com suggests that the
average loss on the junior gold sector was likely within the 40 to
50 percent range as collateral damage from the credit markets
compressed the valuations of such companies. Our funds were
overweight the junior mining stocks in relation to their
benchmarks.
* India's gold imports declined the last two months of the year from
a year earlier after a rally to a 27-year high curbed jewelry
demand. India is the world's biggest consumer of bullion, and a
demand decrease there may portend lower gold prices in the near
term.
* Goldman Sachs sent shudders through the market late this year as
they warned that subprime losses could force banks to slash
lending by $2 trillion and push the U.S. into a deep recession.
Recession tends to lower gold demand and thus the price of gold,
and a tighter lending environment tends to hurt junior gold
companies that need access to capital.
CURRENT OUTLOOK
OPPORTUNITIES
* The California Public Employees' Retirement System announced that
they may shift as much as $29 billion out of stocks and bonds and
move the proceeds into investments that may offer better inflation
protection,
37
PRECIOUS METALS AND MINERALS FUNDS
such as commodities. In a similar move, eight of Russia's ten
wealthiest men have shifted assets into gold-related investments
over the past year.
* A recent report released by Dr. David Davis of Credit Suisse
warned of a quantum upward change in the gold price due to falling
production levels in almost every country except China. In
addition, restrictive regulations on high-purity silver imports
into China that were in place for the last eight years were lifted
in December according to the People's Bank of China. This could
raise silver demand in the coming year.
* In a potential change to how and where we may mine metals in the
future, one pioneering company released the first ever resource
estimate for an underwater base-metals project. Keep in mind,
underwater drilling for oil began in the 1950's, and today a third
of the world's energy is produced from ocean-based operations.
THREATS
* Threats to new mine developments, even in Canada, took center
stage in recent months as construction was stopped on Novagold
Resources, Inc.'s(6) Galore Creek project after $430 million had
already been poured into building the mine. Capital costs for
construction originally estimated in the $2 billion range had
ballooned to nearly $5 billion, which now places the viability of
the project into question.
* High energy prices and, more recently, access to a skilled,
technically-qualified labor force, are driving up wages and costs
for maintaining and or bringing projects into production.
* As much as the U.S. dollar's collapse aids the ascending gold
prices, Goldman Sachs economist Jim O'Neill notes that the dollar
has not been so undervalued against major currencies since 1995.
This indicates that the dollar could be near its bottom and ready
to start climbing, which would stall further gold price gains
until the second half of 2008.
(1)The U.S. Trade Weighted Dollar Index provides a general
indication of the international value of the U.S. dollar.
(2)This security comprised 0.83% of the total net assets of the
World Precious Minerals Fund and 1.65% of the total net assets of
the Gold and Precious Metals Fund as of December 31, 2007.
(3)This security comprised 9.43% of the total net assets of the
World Precious Minerals Fund and 11.96% of the total net assets
of the Gold and Precious Metals Fund as of December 31, 2007.
(4)Neither World Precious Minerals Fund nor the Gold and Precious
Metals Fund held this security as of December 31, 2007.
(5)This security comprised 0.59% of the total net assets of the
World Precious Minerals Fund and 1.71% of the total net assets of
the Gold and Precious Metals Fund as of December 31, 2007.
38
PRECIOUS METALS AND MINERALS FUNDS
(6)This security comprised 0.05% of the total net assets of the
World Precious Minerals Fund and 0.00% of the total net assets of
the Gold and Precious Metals Fund as of December 31, 2007.
WORLD PRECIOUS MINERALS FUND
TOP 10 EQUITY HOLDINGS BASED ON TOTAL INVESTMENTS December 31, 2007
YAMANA GOLD, INC. 9.19%
SENIOR GOLD PRODUCERS
---------------------------------------------------------------
SILVER WHEATON CORP. 7.15%
METAL & MINERAL MINING & EXPLORATION
---------------------------------------------------------------
RANDGOLD RESOURCES LTD. 5.62%
INTERMEDIATE & JUNIOR GOLD PRODUCERS
---------------------------------------------------------------
EASTERN PLATINUM LTD. 5.36%
PLATINUM GROUP METALS
---------------------------------------------------------------
GOLDCORP, INC. 4.69%
SENIOR GOLD PRODUCERS
---------------------------------------------------------------
SILVERCORP METALS, INC. 3.05%
METAL & MINERAL MINING EXPLORATION
---------------------------------------------------------------
JAGUAR MINING, INC. 2.67%
INTERMEDIATE & JUNIOR GOLD PRODUCERS
---------------------------------------------------------------
KINROSS GOLD CORP. 2.55%
SENIOR GOLD PRODUCERS
---------------------------------------------------------------
STREETTRACKS GOLD TRUST 2.30%
EXCHANGE-TRADED FUNDS
---------------------------------------------------------------
AGNICO-EAGLE MINES LTD. 2.00%
INTERMEDIATE & JUNIOR GOLD PRODUCERS
---------------------------------------------------------------
TOTAL TOP TEN HOLDINGS 44.58%
39
PRECIOUS METALS AND MINERALS FUNDS
GOLD AND PRECIOUS METALS FUND
TOP 10 EQUITY HOLDINGS BASED ON TOTAL INVESTMENTS December 31, 2007
YAMANA GOLD, INC. 11.54%
GOLD MINING
---------------------------------------------------------------
KINROSS GOLD CORP. 7.63%
GOLD MINING
---------------------------------------------------------------
GOLDCORP, INC. 6.28%
GOLD MINING
---------------------------------------------------------------
STREETTRACKS GOLD TRUST 5.25%
EXCHANGE-TRADED FUNDS
---------------------------------------------------------------
RANDGOLD RESOURCES LTD. 4.41%
GOLD MINING
---------------------------------------------------------------
SILVER WHEATON CORP. 4.05%
SILVER MINING
---------------------------------------------------------------
GOLD FIELDS LTD. 3.65%
GOLD MINING
---------------------------------------------------------------
AGNICO-EAGLE MINES LTD. 3.60%
GOLD MINING
---------------------------------------------------------------
EASTERN PLATINUM LTD. 2.52%
PLATINUM GROUP METALS
---------------------------------------------------------------
JAGUAR MINING, INC. 2.38%
GOLD MINING
---------------------------------------------------------------
TOTAL TOP TEN HOLDINGS 51.31%
40
PRECIOUS METALS AND MINERALS FUNDS
WORLD PRECIOUS MINERALS FUND
PORTFOLIO PROFILE December 31, 2007
Country Distribution* % of Investments
---------------------------------------------------------------
Canada 62.39%
---------------------------------------------------------------
United States 22.33%
---------------------------------------------------------------
Jersey, Channel Islands 5.62%
---------------------------------------------------------------
Australia 4.45%
---------------------------------------------------------------
South Africa 2.10%
---------------------------------------------------------------
Other Foreign 3.11%
---------------------------------------------------------------
* Country distribution shown is based on domicile not economic
ties to a country, which may be different.
GOLD AND PRECIOUS METALS FUND
PORTFOLIO PROFILE December 31, 2007
Country Distribution* % of Investments
---------------------------------------------------------------
Canada 46.70%
---------------------------------------------------------------
United States 36.43%
---------------------------------------------------------------
South Africa 5.66%
---------------------------------------------------------------
Australia 4.53%
---------------------------------------------------------------
Jersey, Channel Islands 4.41%
---------------------------------------------------------------
Other Foreign 2.27%
---------------------------------------------------------------
* Country distribution shown is based on domicile and the
locale of company operations may be different.
41
PRECIOUS METALS AND MINERALS FUNDS
WORLD PRECIOUS MINERALS FUND
PORTFOLIO ALLOCATION BY INDUSTRY
BASED ON TOTAL INVESTMENTS December 31, 2007
[World Precious Minerals Fund Pie Chart]
Senior Gold Producers 21.6%
Gold/Mineral Exploration & Development 19.4%
Intermediate & Junior Gold Producers 17.5%
Metal & Mineral Mining & Exploration 14.8%
Cash Equivalent 9.8%
Platinum Group Metals 8.0%
Exchange-Traded Funds 4.5%
Other 4.4%
GOLD AND PRECIOUS METALS FUND
PORTFOLIO ALLOCATION BY INDUSTRY
BASED ON TOTAL INVESTMENTS December 31, 2007
[Gold and Precious Metals Fund Pie Chart]
Gold Mining 59.9%
Cash Equivalent 19.5%
Exchange-Traded Funds 7.4%
Silver Mining 5.4%
Gold Royalty Company 2.8%
Other 5.0%
42
EXPENSE EXAMPLE (UNAUDITED) December 31, 2007
As a shareholder of the funds, you incur two types of costs: (1)
transaction costs, including short-term trading fees and exchange
fees; and (2) ongoing costs, including management fees and other
fund expenses. This example is intended to help you understand your
ongoing costs (in dollars) of investing in other mutual funds.
The example is based on an investment of $1,000 invested at the
beginning of the period and held for the entire period as indicated
below.
* ACTUAL EXPENSES. The first line of the following table for each
fund provides information about actual account values and actual
expenses. You may use the information in this line, together with
the amount you invested, to estimate the expenses you paid over
the period. Simply divide your account value by $1,000 (for
example, an $8,600 account value divided by $1,000 = 8.6), then
multiply the result by the number in the first line under the
heading "Expenses Paid During Period" to estimate the expenses you
paid on your account during this period.
* HYPOTHETICAL EXAMPLE FOR COMPARISON PURPOSES. The second line of
the following table for each fund provides information about
hypothetical account values and hypothetical expenses based on the
fund's actual expense ratio and an assumed rate of return of 5
percent per year before expenses, which is not the fund's actual
return. The hypothetical account values and expenses may not be
used to estimate the actual ending account balance or expenses you
paid for the period. You may use this information to compare the
ongoing costs of investing in these funds and other funds. To do
so, compare this 5 percent hypothetical example with the 5 percent
hypothetical examples that appear in the shareholder reports of
other funds.
Please note that the expenses shown in the table are meant to
highlight your ongoing costs only and do not reflect any direct or
transactional costs, such as small account, exchange or short-term
trading fees. Therefore, the second line of the table is useful in
comparing ongoing costs only, and will not help you determine the
relative total costs of owning different funds. In addition, if
these direct or transactional costs were included, your costs would
have been higher.
43
EXPENSE EXAMPLE (UNAUDITED) December 31, 2007
- ------------------------------------------------------------------------------------
SIX MONTHS ENDED DECEMBER 31, 2007
BEGINNING ENDING EXPENSES
ACCOUNT VALUE ACCOUNT VALUE PAID DURING
JULY 1, 2007 DECEMBER 31, 2007 PERIOD*
- ------------------------------------------------------------------------------------
U.S. TREASURY SECURITIES CASH FUND
Based on Actual Fund Return $1,000.00 $1,018.00 $ 5.07
Based on Hypothetical 5% Yearly
Return $1,000.00 $1,020.11 $ 5.08
- ------------------------------------------------------------------------------------
U.S. GOVERNMENT SECURITIES SAVINGS
FUND
Based on Actual Fund Return $1,000.00 $1,022.50 $ 2.29
Based on Hypothetical 5% Yearly
Return $1,000.00 $1,022.87 $ 2.29
- ------------------------------------------------------------------------------------
NEAR-TERM TAX FREE FUND
Based on Actual Fund Return $1,000.00 $1,037.00 $ 2.30
Based on Hypothetical 5% Yearly
Return $1,000.00 $1,022.87 $ 2.29
- ------------------------------------------------------------------------------------
TAX FREE FUND
Based on Actual Fund Return $1,000.00 $1,032.10 $ 3.58
Based on Hypothetical 5% Yearly
Return $1,000.00 $1,021.62 $ 3.56
- ------------------------------------------------------------------------------------
ALL AMERICAN EQUITY FUND
Based on Actual Fund Return $1,000.00 $1,117.80 $ 9.32
Based on Hypothetical 5% Yearly
Return $1,000.00 $1,016.34 $ 8.87
- ------------------------------------------------------------------------------------
CHINA REGION OPPORTUNITY FUND
Based on Actual Fund Return $1,000.00 $1,281.30 $10.61
Based on Hypothetical 5% Yearly
Return $1,000.00 $1,015.84 $ 9.37
- ------------------------------------------------------------------------------------
GLOBAL RESOURCES FUND
Based on Actual Fund Return $1,000.00 $1,173.40 $ 4.81
Based on Hypothetical 5% Yearly
Return $1,000.00 $1,020.71 $ 4.47
- ------------------------------------------------------------------------------------
WORLD PRECIOUS MINERALS FUND
Based on Actual Fund Return $1,000.00 $1,183.30 $ 5.38
Based on Hypothetical 5% Yearly
Return $1,000.00 $1,020.21 $ 4.98
- ------------------------------------------------------------------------------------
GOLD AND PRECIOUS METALS FUND
Based on Actual Fund Return $1,000.00 $1,253.30 $ 7.53
Based on Hypothetical 5% Yearly
Return $1,000.00 $1,018.45 $ 6.75
- ------------------------------------------------------------------------------------
<FN>
*These calculations are based on expenses incurred in the most
recent fiscal half-year. The funds' annualized six-month expense
ratios (after reimbursements and offsets) for the six-month period
ended December 31, 2007, were 1.00%, 0.45%, 0.45%, 0.70%, 1.75%,
1.85%, 0.88%, 0.98% and 1.33%, respectively, for the U.S. Treasury
Securities Cash, U.S. Government Securities Savings, Near-Term Tax
Free, Tax Free, All American Equity, China Region Opportunity,
Global Resources, World Precious Minerals and Gold and Precious
Metals Funds. The dollar amounts shown as "Expenses Paid" are equal
to the annualized expense ratio multiplied by the average account
value over the period, multiplied by 184, the number of days in the
most recent fiscal half-year, then divided by 366 days in the
current fiscal year.
</FN>
44
U.S. TREASURY SECURITIES CASH FUND
PORTFOLIO OF INVESTMENTS (UNAUDITED) December 31, 2007
UNITED STATES
GOVERNMENT COUPON MATURITY PRINCIPAL
OBLIGATIONS 56.82% RATE DATE AMOUNT VALUE
UNITED STATES TREASURY BILLS 52.45%
- ------------------------------------------------------------------------------------
Yield 3.41% 01/03/08 $ 20,000,000 $ 19,996,233
Yield 3.15% 01/10/08 20,000,000 19,984,325
Yield 2.86% 01/17/08 10,000,000 9,987,333
Yield 3.77% 01/24/08 10,000,000 9,976,170
------------
59,944,061
UNITED STATES TREASURY NOTE 4.37%
- ------------------------------------------------------------------------------------
4.63% 02/29/08 5,000,000 4,996,862
- ------------------------------------------------------------------------------------
TOTAL UNITED STATES GOVERNMENT OBLIGATIONS 64,940,923
- ------------------------------------------------------------------------------------
(cost $64,940,923)
REPURCHASE AGREEMENTS 43.83%
Joint Tri-Party Repurchase
Agreements, 12/31/07,
collateralized by U.S.
Treasury securities held in
joint tri-party repurchase
accounts:
1.25% Bear Stearns, repurchase
price $10,780,392 1.25% 01/02/08 10,779,643 10,779,643
1.00% Merrill Lynch,
repurchase price $18,324,219 1.00% 01/02/08 18,323,201 18,323,201
1.30% UBS Financial Services,
Inc., repurchase price
$21,001,517 1.30% 01/02/08 21,000,000 21,000,000
- ------------------------------------------------------------------------------------
TOTAL REPURCHASE AGREEMENTS 50,102,844
- ------------------------------------------------------------------------------------
(cost $50,102,844)
- ------------------------------------------------------------------------------------
TOTAL INVESTMENTS 100.65% 115,043,767
- ------------------------------------------------------------------------------------
(cost $115,043,767)
Other assets and liabilities, net (0.65)% (747,362)
------------
NET ASSETS 100% $114,296,405
------------
See notes to portfolios of investments and notes to financial statements.
45
U.S. GOVERNMENT SECURITIES SAVINGS FUND
PORTFOLIO OF INVESTMENTS (UNAUDITED) December 31, 2007
UNITED STATES
GOVERNMENT AND AGENCY COUPON MATURITY PRINCIPAL
OBLIGATIONS 99.80% RATE DATE AMOUNT VALUE
FEDERAL FARM CREDIT BANK 28.95%
- ------------------------------------------------------------------------------------
Discount Notes:
Yield 3.10% 01/02/08 $ 57,000,000 $ 56,995,092
Yield 3.97% 01/04/08 20,000,000 19,993,383
Yield 4.17% 01/07/08 10,000,000 9,993,067
Yield 4.10% 01/09/08 10,000,000 9,990,911
Yield 4.25% 02/08/08 10,000,000 9,955,456
Yield 4.16% 04/07/08 5,000,000 4,944,629
Fixed Rates:
4.20% 01/07/08 2,250,000 2,249,865
3.55% 01/28/08 1,000,000 998,742
5.83% 02/11/08 5,970,000 5,977,061
3.22% 03/03/08 1,000,000 996,671
3.90% 05/16/08 2,000,000 1,996,656
3.75% 06/02/08 2,000,000 1,987,328
3.75% 06/13/08 1,000,000 997,297
3.97% 06/17/08 3,300,000 3,281,221
3.24% 06/18/08 435,000 432,912
3.50% 08/25/08 1,275,000 1,265,762
4.65% 09/17/08 3,010,000 3,021,041
------------
135,077,094
FEDERAL HOME LOAN BANK 70.85%
- ------------------------------------------------------------------------------------
Discount Notes:
Yield 4.11% 01/02/08 52,863,000 52,856,990
Yield 4.50% 01/03/08 14,652,000 14,648,365
Yield 4.94% 01/10/08 5,000,000 4,993,925
Yield 4.26% 01/11/08 17,553,000 17,532,317
Yield 4.61% 01/16/08 15,000,000 14,971,458
Yield 4.49% 01/18/08 25,300,000 25,246,883
Yield 4.89% 01/22/08 14,080,000 14,040,576
Yield 4.37% 01/23/08 20,000,000 19,946,711
Yield 4.48% 01/30/08 20,000,000 19,930,561
Yield 4.44% 02/01/08 38,758,000 38,611,420
Yield 4.40% 02/06/08 10,000,000 9,957,650
Yield 4.36% 02/15/08 10,000,000 9,946,125
Yield 4.45% 02/22/08 15,000,000 14,907,483
Yield 4.31% 03/31/08 5,000,000 4,946,750
Yield 4.23% 05/09/08 5,265,000 5,186,705
Fixed Rates:
6.08% 01/02/08 1,800,000 1,800,053
3.07% 01/15/08 1,000,000 999,328
3.63% 01/15/08 10,000,000 9,996,521
5.00% 01/28/08 3,000,000 3,000,000
See notes to portfolios of investments and notes to financial statements.
46
U.S. GOVERNMENT SECURITIES SAVINGS FUND
PORTFOLIO OF INVESTMENTS (UNAUDITED) December 31, 2007
UNITED STATES
GOVERNMENT AND AGENCY COUPON MATURITY PRINCIPAL
OBLIGATIONS RATE DATE AMOUNT VALUE
FEDERAL HOME LOAN BANK (CONT'D)
- ------------------------------------------------------------------------------------
Fixed Rates (Cont'd): 5.50% 01/28/08 $ 1,000,000 $ 1,000,735
3.12% 01/29/08 1,885,000 1,881,988
5.63% 02/15/08 1,000,000 1,000,678
4.00% 02/25/08 3,000,000 2,994,093
4.00% 03/10/08 5,000,000 4,996,557
3.35% 03/17/08 2,125,000 2,116,724
4.50% 04/14/08 5,000,000 5,000,000
4.65% 04/16/08 3,000,000 2,998,730
3.50% 05/21/08 1,000,000 993,755
3.65% 05/23/08 1,200,000 1,192,352
3.38% 05/27/08 1,000,000 996,391
3.05% 06/12/08 500,000 497,269
4.10% 06/13/08 920,000 919,186
3.65% 06/16/08 2,000,000 1,993,984
4.00% 07/18/08 3,100,000 3,088,134
3.00% 07/24/08 1,000,000 989,028
3.40% 07/30/08 2,500,000 2,483,516
3.35% 08/07/08 1,000,000 994,689
5.32% 12/22/08 1,000,000 1,010,780
Variable Rate:
3.19% 10/17/08 10,000,000 10,000,000
------------
330,668,410
- ------------------------------------------------------------------------------------
TOTAL INVESTMENTS 99.80% 465,745,504
- ------------------------------------------------------------------------------------
(cost $465,745,504)
Other assets and liabilities, net
0.20% 950,793
------------
NET ASSETS 100% $466,696,297
------------
See notes to portfolios of investments and notes to financial statements.
47
NEAR-TERM TAX FREE FUND
PORTFOLIO OF INVESTMENTS (UNAUDITED) December 31, 2007
COUPON MATURITY PRINCIPAL
MUNICIPAL BONDS 96.86% RATE DATE AMOUNT VALUE
ALABAMA 9.38%
- ---------------------------------------------------------------------------------------
DCH Health Care Authority Facilities
Revenue 5.00% 06/01/09 $ 250,000 $ 256,280
Jefferson County, Alabama Limited
Obligation, Series A 5.00% 01/01/08 300,000 300,000
Mountain Brook City Board of Education
Capital Outlay 4.00% 02/15/15 200,000 205,862
University of Alabama, University
Revenues, Series C (VR) 3.45% 09/01/31 500,000 500,000
-----------
1,262,142
ALASKA 2.28%
- ---------------------------------------------------------------------------------------
Alaska Municipal Bond Bank Authority,
Series A 4.00% 02/01/16 300,000 306,435
ARIZONA 2.26%
- ---------------------------------------------------------------------------------------
Pima County Unified School District, GO
Unlimited, Refunding 3.70% 07/01/12 300,000 303,594
CALIFORNIA 2.43%
- ---------------------------------------------------------------------------------------
Association of Bay Area Governments
(ABAG) Finance Authority, Series C 4.00% 03/01/08 100,000 99,940
San Diego, California Community College
District, GO Unlimited (ZCB) 4.34%(1) 05/01/15 300,000 226,236
-----------
326,176
CONNECTICUT 2.04%
- ---------------------------------------------------------------------------------------
Connecticut State, Series D, GO
Unlimited 5.375% 11/15/18 250,000 273,947
DELAWARE 1.51%
- ---------------------------------------------------------------------------------------
Delaware Transportation Authority
System Revenue 5.50% 07/01/08 200,000 202,450
DISTRICT OF COLUMBIA 1.15%
- ---------------------------------------------------------------------------------------
District of Columbia, Unrefunded,
Series B 5.50% 06/01/09 150,000 155,107
FLORIDA 2.89%
- ---------------------------------------------------------------------------------------
Florida State Board of Education
Capital Outlay, Series B, GO 5.25% 06/01/11 175,000 178,234
Florida State Department Environmental
Protection Preservation Revenue,
Florida Forever, Series B 5.00% 07/01/09 205,000 210,664
-----------
388,898
See notes to portfolios of investments and notes to financial statements.
48
NEAR-TERM TAX FREE FUND
PORTFOLIO OF INVESTMENTS (UNAUDITED) December 31, 2007
COUPON MATURITY PRINCIPAL
MUNICIPAL BONDS RATE DATE AMOUNT VALUE
ILLINOIS 9.38%
- ---------------------------------------------------------------------------------------
Chicago Water Revenue (ZCB) 5.05%(1) 11/01/08 $ 275,000 $ 267,847
Cook County, Illinois Capital
Improvement, GO Unlimited,
Prerefunded, Series A 5.25% 11/15/14 300,000 315,030
Illinois Finance Authority Revenue,
Refunding 5.00% 07/01/16 390,000 419,211
Illinois State Sales Tax Revenue 6.00% 06/15/09 250,000 260,357
-----------
1,262,445
INDIANA 4.96%
- ---------------------------------------------------------------------------------------
Indiana State Finance Authority
Revenue, Refunding 4.00% 05/01/12 350,000 359,502
Tippecanoe County, Indiana School
Improvements 4.00% 01/15/15 300,000 308,331
-----------
667,833
IOWA 3.88%
- ---------------------------------------------------------------------------------------
Ames, Iowa Hospital Revenue, Refunding 5.00% 06/15/15 300,000 318,924
Johnston Community School District, GO
Unlimited 4.00% 06/01/16 200,000 203,074
-----------
521,998
KANSAS 1.53%
- ---------------------------------------------------------------------------------------
Kansas State Development Finance
Authority Revenue 4.00% 10/01/15 200,000 206,310
MASSACHUSETTS 0.75%
- ---------------------------------------------------------------------------------------
Massachusetts State, Series C, GO 4.625% 10/01/08 100,000 101,216
MICHIGAN 0.97%
- ---------------------------------------------------------------------------------------
Detroit, Michigan Local Development
Financial Authority, Series A 5.20% 05/01/10 130,000 129,934
MISSOURI 1.74%
- ---------------------------------------------------------------------------------------
Missouri State Health & Educational
Facilities Authority Revenue,
Series A 6.75% 05/15/13 200,000 233,336
NEVADA 1.49%
- ---------------------------------------------------------------------------------------
North Las Vegas, GO Limited 4.00% 03/01/16 200,000 200,816
NEW JERSEY 3.86%
- ---------------------------------------------------------------------------------------
New Jersey State 5.125% 05/01/10 250,000 260,917
New Jersey State Transportation Trust
Fund Authority, Series D 4.00% 06/15/14 250,000 258,762
-----------
519,679
See notes to portfolios of investments and notes to financial statements.
49
NEAR-TERM TAX FREE FUND
PORTFOLIO OF INVESTMENTS (UNAUDITED) December 31, 2007
COUPON MATURITY PRINCIPAL
MUNICIPAL BONDS RATE DATE AMOUNT VALUE
NEW YORK 7.47%
- ---------------------------------------------------------------------------------------
New York City Transitional Financial
Authority Revenue, Series A 5.25% 11/01/08 $ 225,000 $ 229,363
New York State Throughway Authority
Service Contract Revenue,
Prerefunded, Local Highway & Bridge,
Series A2 5.375% 04/01/10 150,000 152,385
New York State Throughway Authority
Service Contract Revenue, Unrefunded,
Local Highway & Bridge, Series A2 5.375% 04/01/10 50,000 50,768
New York State, GO 5.00% 03/01/08 250,000 250,808
New York, New York, Series B 5.25% 08/01/09 200,000 206,868
Schenectady Metroplex Development
Authority Revenue, Series A 5.00% 12/15/12 110,000 115,243
-----------
1,005,435
OREGON 0.96%
- ---------------------------------------------------------------------------------------
Oregon State Department Transportation
Highway 5.00% 11/15/09 125,000 129,380
SOUTH CAROLINA 8.66%
- ---------------------------------------------------------------------------------------
Horry County Hospitality Fee Special
Obligation 5.00% 04/01/10 200,000 206,884
Jasper County School District, GO
Unlimited 4.00% 03/01/15 195,000 199,505
Piedmont Municipal Power Agency
Electric Revenue, Refunding, Series B 5.25% 01/01/09 200,000 201,846
South Carolina State Public Service
Authority Revenue, Refunding,
Series B 5.00% 01/01/08 250,000 250,000
Spartanburg County School District 3.875% 04/01/12 300,000 307,242
-----------
1,165,477
TENNESSEE 2.36%
- ---------------------------------------------------------------------------------------
Tennessee State, GO Unlimited,
Refunding, Series A 5.00% 05/01/11 300,000 317,085
TEXAS 13.44%
- ---------------------------------------------------------------------------------------
Arlington Refunding, Series A 5.00% 08/15/08 200,000 202,458
Killeen, Texas Independent School
District, GO Unlimited, Prerefunded 5.00% 02/15/09 310,000 310,719
Killeen, Texas Independent School
District, GO Unlimited, Unrefunded 5.00% 02/15/09 90,000 90,191
Lewisville, Texas Independent School
District, GO Unlimited, Refunding
(ZCB) 4.04%(1) 08/15/15 400,000 297,864
San Antonio Water System Revenue 5.00% 05/15/13 100,000 105,009
San Antonio, Texas Water Revenue,
Refunding, Series A (VR) 3.50% 05/15/33 600,000 600,000
See notes to portfolios of investments and notes to financial statements.
50
NEAR-TERM TAX FREE FUND
PORTFOLIO OF INVESTMENTS (UNAUDITED) December 31, 2007
COUPON MATURITY PRINCIPAL
MUNICIPAL BONDS RATE DATE AMOUNT VALUE
TEXAS (CONT'D)
- --------------------------------------------------------------------------------------
Texas Turnpike Authority Revenue 5.00% 06/01/08 $ 200,000 $ 201,644
-----------
1,807,885
UTAH 2.43%
- --------------------------------------------------------------------------------------
Utah State, Refunding, Series B, GO
Unlimited 5.375% 07/01/12 300,000 326,442
VIRGINIA 4.84%
- --------------------------------------------------------------------------------------
Virginia State Public Building
Authority & Public Facilities
Revenue, Refunding, Series A 5.00% 08/01/12 300,000 321,486
Virginia College Building Authority,
Series A 5.00% 09/01/15 300,000 329,142
-----------
650,628
WASHINGTON 0.79%
- --------------------------------------------------------------------------------------
Clark County, Washington School
District, GO Unlimited 5.125% 12/01/11 100,000 106,827
WISCONSIN 3.41%
- --------------------------------------------------------------------------------------
Milwaukee, Wisconsin, Series L, GO 4.60% 12/15/13 150,000 152,336
Wisconsin State, Refunding, Series 2,
GO Unlimited 4.125% 11/01/16 300,000 306,336
-----------
458,672
- --------------------------------------------------------------------------------------
TOTAL MUNICIPAL BONDS 13,030,147
- --------------------------------------------------------------------------------------
(cost $12,850,829)
REPURCHASE AGREEMENTS 2.33%
Joint Tri-Party Repurchase Agreement,
Bear Stearns, 12/31/07, 1.25%, due
01/02/08, repurchase price $116,004,
collateralized by U.S. Treasury
securities held in a joint tri-party
account (cost $115,996) 1.25% 01/02/08 115,996 115,996
Joint Tri-Party Repurchase Agreement,
Merrill Lynch, 12/31/07, 1.00%, due
01/02/08, repurchase price $197,181,
collateralized by U.S. Treasury
securities held in a joint tri-party
account (cost $197,170) 1.00% 01/02/08 197,170 197,170
- --------------------------------------------------------------------------------------
TOTAL REPURCHASE AGREEMENTS 313,166
- --------------------------------------------------------------------------------------
(cost $313,166)
See notes to portfolios of investments and notes to financial statements.
51
NEAR-TERM TAX FREE FUND
PORTFOLIO OF INVESTMENTS (UNAUDITED) December 31, 2007
- --------------------------------------------------------------------------------------
TOTAL INVESTMENTS 99.19% $13,343,313
- --------------------------------------------------------------------------------------
(cost $13,163,995)
Other assets and liabilities, net 0.81% 109,264
-----------
NET ASSETS 100% $13,452,577
-----------
<FN>
(1) Represents Yield
</FN>
See notes to portfolios of investments and notes to financial statements.
52
TAX FREE FUND
PORTFOLIO OF INVESTMENTS (UNAUDITED) December 31, 2007
COUPON MATURITY PRINCIPAL
MUNICIPAL BONDS 93.35% RATE DATE AMOUNT VALUE
ALABAMA 5.01%
- --------------------------------------------------------------------------------------
Alabama 21st Century Authority Tobacco
Settlement Revenue 5.75% 12/01/19 $ 275,000 $ 283,704
Alabama State, GO Unlimited, Series A 4.625% 09/01/22 375,000 388,380
Mountain Brook City Board of Education
Capital Outlay 4.00% 02/15/15 195,000 200,715
-----------
872,799
CALIFORNIA 8.68%
- --------------------------------------------------------------------------------------
Anaheim, California City School
District, Capital Appreciation,
Election 2002, GO Unlimited (ZCB) 4.60%(1) 08/01/28 580,000 210,383
California State, GO Unlimited 4.75% 03/01/34 205,000 199,596
California State, GO Unlimited 5.00% 06/01/37 455,000 458,376
Campbell, California Union High School
District, GO Unlimited 4.75% 08/01/34 300,000 304,560
San Diego, California Community College
District, GO Unlimited (ZCB) 4.34%(1) 05/01/15 450,000 339,354
-----------
1,512,269
COLORADO 0.88%
- --------------------------------------------------------------------------------------
Colorado Health Facility Authority
Revenue 5.00% 09/01/16 150,000 153,550
FLORIDA 4.57%
- --------------------------------------------------------------------------------------
Florida Board of Education, GO
Unlimited, Refunding, Series C 4.50% 06/01/28 300,000 300,198
St. Lucie County Florida Sales Tax
Revenue 5.25% 10/01/23 465,000 496,002
-----------
796,200
GEORGIA 5.09%
- --------------------------------------------------------------------------------------
Atlanta Development Authority Revenue 5.25% 07/01/22 500,000 515,505
Chatham County Hospital Authority
Revenue, Series A 5.50% 01/01/34 405,000 371,547
-----------
887,052
ILLINOIS 7.56%
- --------------------------------------------------------------------------------------
Du Page County, Refunding 5.60% 01/01/21 490,000 551,005
Illinois Development Financing
Authority Hospital Revenue, Adventist
Health System 5.65% 11/15/24 435,000 459,356
Illinois Regional Transportation
Authority Revenue, Series A 7.20% 11/01/20 250,000 306,727
-----------
1,317,088
See notes to portfolios of investments and notes to financial statements.
53
TAX FREE FUND
PORTFOLIO OF INVESTMENTS (UNAUDITED) December 31, 2007
COUPON MATURITY PRINCIPAL
MUNICIPAL BONDS RATE DATE AMOUNT VALUE
KANSAS 8.04%
- -------------------------------------------------------------------------------------
Kansas State Development Finance
Authority Hospital Revenue, Series Z 5.00% 12/15/12 $ 500,000 $ 514,950
Kansas State Development Finance
Authority Revenue 4.00% 10/01/15 250,000 257,887
University of Kansas Hospital Authority
Health Facilities Revenue 5.625% 09/01/27 570,000 627,798
-----------
1,400,635
KENTUCKY 1.26%
- -------------------------------------------------------------------------------------
Bowling Green, Kentucky, GO Unlimited,
Series B 4.00% 09/01/16 215,000 219,414
MARYLAND 1.87%
- -------------------------------------------------------------------------------------
Maryland State Health & Higher
Educational Facilities Authority
Revenue 5.75% 07/01/21 300,000 325,290
MICHIGAN 3.42%
- -------------------------------------------------------------------------------------
Detroit, Michigan Local Development
Financing Authority, Refunding,
Series A 5.375% 05/01/18 300,000 290,400
Macomb County Building Authority, GO
Limited 4.50% 11/01/23 300,000 305,058
-----------
595,458
MISSOURI 2.42%
- -------------------------------------------------------------------------------------
St. Louis Airport Development Program,
Prerefunded, Series A 5.00% 07/01/11 165,000 174,570
St. Louis Airport Development Program,
Unrefunded, Series A 5.00% 07/01/11 235,000 246,569
-----------
421,139
NEW HAMPSHIRE 1.95%
- -------------------------------------------------------------------------------------
Manchester, New Hampshire School
Facilities Revenue, Refunding 5.50% 06/01/26 300,000 340,101
NEW JERSEY 4.52%
- -------------------------------------------------------------------------------------
New Jersey Health Care Facilities
Financing Authority Revenue 4.375% 07/01/10 460,000 463,616
New Jersey State Transportation
Authority, Series A 5.00% 06/15/13 315,000 323,899
-----------
787,515
See notes to portfolios of investments and notes to financial statements.
54
TAX FREE FUND
PORTFOLIO OF INVESTMENTS (UNAUDITED) December 31, 2007
COUPON MATURITY PRINCIPAL
MUNICIPAL BONDS RATE DATE AMOUNT VALUE
NEW YORK 4.17%
- -------------------------------------------------------------------------------------
New York, GO Unlimited, Prerefunded,
Series H 5.25% 03/15/14 $ 450,000 $ 466,357
New York, GO Unlimited, Prerefunded,
Series J 5.00% 05/15/12 225,000 233,244
New York, GO Unlimited, Unrefunded
Balance, Series J 5.00% 05/15/12 25,000 25,756
-----------
725,357
OHIO 2.81%
- -------------------------------------------------------------------------------------
Ohio State Mental Health Facilities
Revenue 5.50% 06/01/15 300,000 322,305
South Euclid Special Assessment, GO
Limited Tax 6.70% 12/01/14 150,000 167,465
-----------
489,770
PENNSYLVANIA 1.45%
- -------------------------------------------------------------------------------------
Chester County Health & Educational
Facilities Authority Revenue 5.00% 05/15/08 250,000 251,728
PUERTO RICO 1.88%
- -------------------------------------------------------------------------------------
Puerto Rico Electric Power Authority
Revenue, Series II 5.125% 07/01/26 300,000 326,715
RHODE ISLAND 3.27%
- -------------------------------------------------------------------------------------
Rhode Island State Health & Educational
Building Corporation Revenue 6.50% 08/15/32 500,000 568,855
SOUTH CAROLINA 1.45%
- -------------------------------------------------------------------------------------
South Carolina Jobs Economic
Development Authority Revenue 5.00% 11/01/23 250,000 253,070
TENNESSEE 1.27%
- -------------------------------------------------------------------------------------
Memphis, Tennessee Sanitary Sewage
System Revenue, Refunding 5.00% 05/01/20 200,000 220,530
TEXAS 20.33%
- -------------------------------------------------------------------------------------
Baytown, Texas, GO Limited 4.50% 02/01/27 250,000 244,663
Duncanville, Texas Independent School
District, GO Unlimited, Prerefunded,
Series B 5.25% 02/15/32 495,000 533,016
Duncanville, Texas Independent School
District, GO Unlimited, Unrefunded,
Series B 5.25% 02/15/32 5,000 5,187
Forney, Texas, GO Limited 5.00% 02/15/27 500,000 523,450
Goose Creek, Texas Independent School
District Schoolhouse, Series A 5.25% 02/15/18 370,000 408,587
Greenville, Texas Independent School
District, GO Unlimited, Refunding 4.00% 08/15/17 120,000 120,779
See notes to portfolios of investments and notes to financial statements.
55
TAX FREE FUND
PORTFOLIO OF INVESTMENTS (UNAUDITED) December 31, 2007
COUPON MATURITY PRINCIPAL
MUNICIPAL BONDS RATE DATE AMOUNT VALUE
TEXAS (CONT'D)
- -------------------------------------------------------------------------------------
Houston Community College System
Revenue, Refunding 4.00% 04/15/17 $ 300,000 $ 299,754
North Texas Municipal Water District
Regional Solid Waste Disposal System
Revenue 4.25% 09/01/17 385,000 394,521
San Antonio, Texas Water Revenue,
Refunding, Series A (VR) 3.50% 05/15/33 700,000 700,000
White Settlement, Texas Independent
School District, GO Unlimited 4.125% 08/15/15 300,000 310,398
-----------
3,540,355
WASHINGTON 1.45%
- -------------------------------------------------------------------------------------
Spokane County, Washington School
District, GO Unlimited 5.05% 06/01/22 255,000 252,093
- -------------------------------------------------------------------------------------
TOTAL MUNICIPAL BONDS 16,256,983
- -------------------------------------------------------------------------------------
(cost $15,768,365)
REPURCHASE AGREEMENTS 5.59%
Joint Tri-Party Repurchase Agreement, Bear
Stearns, 12/31/07, 1.25%, due 01/02/08,
repurchase price $360,361,
collateralized by U.S. Treasury
securities held in a joint tri-party
account (cost $360,336) 1.25% 01/02/08 360,336 360,336
Joint Tri-Party Repurchase Agreement,
Merrill Lynch, 12/31/07, 1.00%, due
01/02/08, repurchase price $612,532,
collateralized by U.S. Treasury
securities held in a joint tri-party
account (cost $612,498) 1.00% 01/02/08 612,498 612,498
- ----------------------------------------------------------------------------------------
TOTAL REPURCHASE AGREEMENTS 972,834
- ----------------------------------------------------------------------------------------
(cost $972,834)
- ----------------------------------------------------------------------------------------
TOTAL INVESTMENTS 98.94% 17,229,817
- ----------------------------------------------------------------------------------------
(cost $16,741,199)
Other assets and liabilities, net 1.06% 184,192
-----------
NET ASSETS 100% $17,414,009
-----------
<FN>
(1) Represents Yield
</FN>
See notes to portfolios of investments and notes to financial statements.
56
ALL AMERICAN EQUITY FUND
PORTFOLIO OF INVESTMENTS (UNAUDITED) December 31, 2007
COMMON STOCKS 90.70% SHARES VALUE
AEROSPACE/DEFENSE 1.98%
- ---------------------------------------------------------------------------------------
BE Aerospace, Inc. 7,500 $ 396,750*
The Boeing Co. 2,000 174,920
-----------
571,670
APPAREL 1.23%
- ---------------------------------------------------------------------------------------
Lululemon Athletica, Inc. 7,500 355,275*
APPLICATIONS SOFTWARE 4.27%
- ---------------------------------------------------------------------------------------
Activision, Inc. 10,000 297,000*
Adobe Systems, Inc. 4,500 192,285*
Microsoft Corp. 10,000 356,000
Oracle Corp. 7,500 169,350*
Salesforce.com, Inc. 3,500 219,415*
-----------
1,234,050
AUTO MANUFACTURERS 0.42%
- ---------------------------------------------------------------------------------------
PACCAR, Inc. 2,250 122,580
BEVERAGES 1.59%
- ---------------------------------------------------------------------------------------
The Coca-Cola Co. 7,500 460,275
CELLULAR TELECOMMUNICATIONS 1.75%
- ---------------------------------------------------------------------------------------
Cellcom Israel Ltd. 5,000 158,800
China Mobile Ltd., Sponsored ADR 4,000 347,480
-----------
506,280
CHEMICALS - AGRICULTURAL 6.15%
- ---------------------------------------------------------------------------------------
Monsanto Co. 5,500 614,295
Potash Corporation of Saskatchewan, Inc. 3,500 503,860
The Mosaic Company 7,000 660,380*
-----------
1,778,535
CHEMICALS - SPECIALTY 0.74%
- ---------------------------------------------------------------------------------------
Zoltek Co., Inc. 5,000 214,350*
COMPUTERS 5.84%
- ---------------------------------------------------------------------------------------
Apple Computer, Inc. 7,000 1,386,560*
Hewlett-Packard Co. 6,000 302,880
-----------
1,689,440
See notes to portfolios of investments and notes to financial statements.
57
ALL AMERICAN EQUITY FUND
PORTFOLIO OF INVESTMENTS (UNAUDITED) December 31, 2007
COMMON STOCKS SHARES VALUE
COMPUTERS - MEMORY DEVICES 1.02%
- ---------------------------------------------------------------------------------------
EMC Corp. 9,000 $ 166,770*
Seagate Technology 5,000 127,500
-----------
294,270
DIVERSIFIED OPERATIONS 0.49%
- ---------------------------------------------------------------------------------------
Aecom Technology Corp. 5,000 142,850*
E-COMMERCE/SERVICES 1.39%
- ---------------------------------------------------------------------------------------
Priceline.com, Inc. 3,500 402,010*
ELECTRIC - INTEGRATED 0.57%
- ---------------------------------------------------------------------------------------
Exelon Corp. 2,000 163,280
ELECTRONICS & COMPONENTS 5.53%
- ---------------------------------------------------------------------------------------
NVIDIA Corp. 12,000 408,240*
Research In Motion Ltd. 10,500 1,190,700*
-----------
1,598,940
ENERGY - ALTERNATIVE SOURCES 4.09%
- ---------------------------------------------------------------------------------------
First Solar, Inc. 3,500 934,990*
Suntech Power Holdings Co., Ltd., ADR 3,000 246,960*
-----------
1,181,950
ENGINEERING SERVICES 0.83%
- ---------------------------------------------------------------------------------------
Stanley, Inc. 7,500 240,150*
FINANCIAL SERVICES 9.47%
- ---------------------------------------------------------------------------------------
Anworth Mortgage Asset Corp. 20,000 165,200
Bank of New York Mellon Corp. 6,000 292,560
CME Group, Inc. 800 548,800
GFI Group, Inc. 4,500 430,740*
Janus Capital Group, Inc. 10,000 328,500
MasterCard, Inc., Class A 3,000 645,600
State Street Corp. 4,000 324,800
-----------
2,736,200
FOOD & BEVERAGES 0.31%
- ---------------------------------------------------------------------------------------
Kraft Foods, Inc., Class A 2,768 90,320
GOLD MINING 0.84%
- ---------------------------------------------------------------------------------------
Randgold Resources Ltd., ADR 6,500 241,345
See notes to portfolios of investments and notes to financial statements.
58
ALL AMERICAN EQUITY FUND
PORTFOLIO OF INVESTMENTS (UNAUDITED) December 31, 2007
COMMON STOCKS 90.70% SHARES VALUE
HOUSEHOLD PRODUCTS 0.76%
- ---------------------------------------------------------------------------------------
The Procter & Gamble Co. 3,000 $ 220,260
INTERNET 3.79%
- ---------------------------------------------------------------------------------------
Baidu.com, Inc., Sponsored ADR 1,200 468,468*
Google, Inc., Class A 800 553,184*
Stockgroup Information Systems, Inc. 131,125 74,741*
-----------
1,096,393
MACHINERY 2.51%
- ---------------------------------------------------------------------------------------
Deere & Co. 4,000 372,480
Lindsay Corp. 5,000 353,450
-----------
725,930
MEDICAL - BIOMEDICAL 0.62%
- ---------------------------------------------------------------------------------------
Illumina, Inc. 3,000 177,780*
MEDICAL - DRUGS 0.90%
- ---------------------------------------------------------------------------------------
Novo Nordisk AS, Sponsored ADR 4,000 259,440
MEDICAL - PRODUCTS 3.30%
- ---------------------------------------------------------------------------------------
DENTSPLY International, Inc. 5,000 225,100
Meridian Bioscience, Inc. 7,500 225,600
St. Jude Medical, Inc. 5,000 203,200*
Stryker Corp. 4,000 298,880
-----------
952,780
METAL & MINERAL MINING 1.24%
- ---------------------------------------------------------------------------------------
Freeport-McMoRan Copper & Gold, Inc. 3,000 307,320
Mines Management, Inc. 15,000 51,150*
-----------
358,470
NETWORKING PRODUCTS 3.13%
- ---------------------------------------------------------------------------------------
Cisco Systems, Inc. 15,000 406,050*
Juniper Networks, Inc. 15,000 498,000*
-----------
904,050
OIL & GAS - INTEGRATED 1.68%
- ---------------------------------------------------------------------------------------
Marathon Oil Corp. 8,000 486,880
See notes to portfolios of investments and notes to financial statements.
59
ALL AMERICAN EQUITY FUND
PORTFOLIO OF INVESTMENTS (UNAUDITED) December 31, 2007
COMMON STOCKS SHARES VALUE
OIL & GAS DRILLING 3.45%
- ---------------------------------------------------------------------------------------
Diamond Offshore Drilling, Inc. 4,000 $ 568,000
Noble Corp. 2,000 113,020
Transocean, Inc. 2,200 314,930*
-----------
995,950
OIL & GAS EQUIPMENT & SERVICES 2.99%
- ---------------------------------------------------------------------------------------
Core Laboratories N.V. 3,000 374,160*
FMC Technologies, Inc. 4,500 255,150*
Oceaneering International, Inc. 3,500 235,725*
-----------
865,035
OIL & GAS EXPLORATION & PRODUCTION 2.99%
- ---------------------------------------------------------------------------------------
Apache Corp. 2,000 215,080
Cano Petroleum, Inc. 20,000 137,800*
MV Oil Trust 4,000 98,200
Noble Energy, Inc. 2,400 190,848
Talisman Energy, Inc. 12,000 222,240
-----------
864,168
OIL & GAS REFINING & MARKETING 0.97%
- ---------------------------------------------------------------------------------------
Valero Energy Corp. 4,000 280,120
PHARMACY SERVICES 1.89%
- ---------------------------------------------------------------------------------------
Express Scripts, Inc. 7,500 547,500*
REAL ESTATE INVESTMENT TRUSTS 0.63%
- ---------------------------------------------------------------------------------------
Annaly Capital Management, Inc. 10,000 181,800
RESTAURANTS 1.63%
- ---------------------------------------------------------------------------------------
McDonald's Corp. 8,000 471,280
RETAIL 3.91%
- ---------------------------------------------------------------------------------------
Costco Wholesale Corp. 5,000 348,800
CVS Caremark Corp. 4,000 159,000
GameStop Corp., Class A 10,000 621,100*
-----------
1,128,900
SECURITY PRODUCTS & SERVICES 0.50%
- ---------------------------------------------------------------------------------------
Taser International, Inc. 10,000 143,900*
See notes to portfolios of investments and notes to financial statements.
60
ALL AMERICAN EQUITY FUND
PORTFOLIO OF INVESTMENTS (UNAUDITED) December 31, 2007
COMMON STOCKS SHARES VALUE
SEMICONDUCTORS 1.78%
- ---------------------------------------------------------------------------------------
MEMC Electronic Materials, Inc. 3,000 $ 265,470*
Tessera Technologies, Inc. 6,000 249,600*
-----------
515,070
THERAPEUTICS 0.96%
- ---------------------------------------------------------------------------------------
Gilead Sciences, Inc. 6,000 276,060*
TOBACCO 1.57%
- ---------------------------------------------------------------------------------------
Altria Group, Inc. 6,000 453,480
WIRELESS EQUIPMENT 0.99%
- ---------------------------------------------------------------------------------------
Alvarion Ltd. 10,000 95,000*
Nokia Oyj, Sponsored ADR 5,000 191,950
-----------
286,950
- ---------------------------------------------------------------------------------------
TOTAL COMMON STOCKS 26,215,966
- ---------------------------------------------------------------------------------------
(cost $21,110,228)
EXCHANGE-TRADED FUND 0.97%
iShares Silver Trust
(cost $285,973) 1,900 279,243*
WARRANTS 0.04%
METAL & MINERAL MINING 0.04%
- ---------------------------------------------------------------------------------------
Mines Management, Inc., Warrants (April 2012)
(cost $10,608) 7,500 12,375*
See notes to portfolios of investments and notes to financial statements.
61
ALL AMERICAN EQUITY FUND
PORTFOLIO OF INVESTMENTS (UNAUDITED) December 31, 2007
PURCHASED OPTIONS 0.96% CONTRACTS VALUE
COMPUTERS 0.15%
- ---------------------------------------------------------------------------------------
Dell, Inc., Strike Price 25, Call, Expiration May 2008
(premium $46,850) 200 $ 42,400
FINANCIAL SERVICES 0.07%
- ---------------------------------------------------------------------------------------
Citigroup, Inc., Strike Price 30, Call, Expiration
Jan. 2008 (premium $39,779) 80 22,000
GOLD MINING 0.74%
- ---------------------------------------------------------------------------------------
Goldcorp, Inc., Strike Price 30, Call, Expiration
Jan. 2009 (premium $84,535) 145 123,250
Goldcorp, Inc., Strike Price 35, Call, Expiration
Jan. 2009 (premium $61,950) 150 91,500
-----------
214,750
- ---------------------------------------------------------------------------------------
TOTAL PURCHASED OPTIONS 279,150
- ---------------------------------------------------------------------------------------
(cost $233,114)
- ---------------------------------------------------------------------------------------
TOTAL SECURITIES 26,786,734
- ---------------------------------------------------------------------------------------
(cost $21,639,923)
PRINCIPAL
REPURCHASE AGREEMENTS 7.42% AMOUNT
Joint Tri-Party Repurchase Agreement, Bear Stearns,
12/31/07, 1.25%, due 01/02/08, repurchase price
$794,117, collateralized by U.S. Treasury securities
held in a joint tri-party account (cost $794,062) $794,062 794,062
Joint Tri-Party Repurchase Agreement, Merrill Lynch,
12/31/07, 1.00%, due 01/02/08, repurchase price
$1,349,821, collateralized by U.S. Treasury securities
held in a joint tri-party account (cost $1,349,746) 1,349,746 1,349,746
- ---------------------------------------------------------------------------------------
TOTAL REPURCHASE AGREEMENTS 2,143,808
- ---------------------------------------------------------------------------------------
(cost $2,143,808)
- ---------------------------------------------------------------------------------------
TOTAL INVESTMENTS 100.09% 28,930,542
- ---------------------------------------------------------------------------------------
(cost $23,783,731)
Other assets and liabilities, net (0.09)% (25,808)
-----------
NET ASSETS 100% $28,904,734
-----------
See notes to portfolios of investments and notes to financial statements.
62
CHINA REGION OPPORTUNITY FUND
PORTFOLIO OF INVESTMENTS (UNAUDITED) December 31, 2007
COMMON STOCKS 92.15% SHARES VALUE
AGRICULTURE 4.02%
- ----------------------------------------------------------------------------------------
China Agri-Industries Holdings Ltd. 1,500,000 $ 1,011,915*
IOI Corp., Berhad 1,200,000 2,812,217
Kuala Lumpur Kepong Berhad 300,000 1,578,470
-----------
5,402,602
AIRLINES 0.79%
- ----------------------------------------------------------------------------------------
China Southern Airlines Co., Ltd., H shares 800,000 1,056,803*
AIRPORT OPERATIONS 0.38%
- ----------------------------------------------------------------------------------------
Beijing Capital International Airport Co., Ltd., H
shares 300,000 509,420
APPAREL 2.22%
- ----------------------------------------------------------------------------------------
Li Ning Co., Ltd. 800,000 2,985,725
AUTO PARTS & EQUIPMENT 0.29%
- ----------------------------------------------------------------------------------------
Xinyi Glass Holdings Co., Ltd. 400,000 384,758
BANKS 4.25%
- ----------------------------------------------------------------------------------------
China Construction Bank Corp., H shares 2,000,000 1,698,067
China Merchants Bank Co., Ltd., H shares 800,000 3,283,272
Kookmin Bank 10,000 734,970*
-----------
5,716,309
CASINO HOTELS 0.48%
- ----------------------------------------------------------------------------------------
NagaCorp Ltd. 2,000,000 648,959
CELLULAR TELECOMMUNICATIONS 5.26%
- ----------------------------------------------------------------------------------------
China Mobile Ltd. 400,000 7,074,425
CHEMICALS - AGRICULTURAL 0.84%
- ----------------------------------------------------------------------------------------
Sinofert Holdings Ltd. 1,000,000 934,963
Spur Ventures, Inc. 328,000 191,475*
-----------
1,126,438
COAL 6.91%
- ----------------------------------------------------------------------------------------
China Coal Energy Co., H shares 1,000,000 3,148,607
China Shenhua Energy Co., Ltd., H shares 500,000 2,985,084
PT Bumi Resources Tbk 5,000,000 3,155,253
-----------
9,288,944
See notes to portfolios of investments and notes to financial statements.
63
CHINA REGION OPPORTUNITY FUND
PORTFOLIO OF INVESTMENTS (UNAUDITED) December 31, 2007
COMMON STOCKS SHARES VALUE
CONSTRUCTION 3.45%
- ----------------------------------------------------------------------------------------
China Communications Construction Co., Ltd., H shares 800,000 $ 2,113,606
China National Building Material Co., Ltd., H shares 400,000 1,562,119
China State Construction International Holdings Ltd. 600,000 954,201
-----------
4,629,926
DISTRIBUTION/WHOLESALE 1.72%
- ----------------------------------------------------------------------------------------
Esprit Holdings Ltd. 100,000 1,499,275
Li & Fung Ltd. 200,000 806,710
-----------
2,305,985
DIVERSIFIED MINERALS 0.08%
- ----------------------------------------------------------------------------------------
Erdene Gold, Inc. 100,000 111,721*
DIVERSIFIED OPERATIONS 1.17%
- ----------------------------------------------------------------------------------------
Wharf Holdings Ltd. 300,000 1,573,662
E-COMMERCE/SERVICES 0.76%
- ----------------------------------------------------------------------------------------
Alibaba.com Ltd. 37,500 135,387*
SINA Corp. 20,000 886,200*
-----------
1,021,587
EDUCATION 1.58%
- ----------------------------------------------------------------------------------------
CIBT Education Group, Inc. 836,032 2,128,892*
ELECTRIC GENERATION 2.33%
- ----------------------------------------------------------------------------------------
Harbin Power Equipment Co., Ltd., H shares 700,000 2,244,424
LS Industrial Systems Co., Ltd. 15,000 886,934
-----------
3,131,358
ELECTRONICS & COMPONENTS 2.28%
- ----------------------------------------------------------------------------------------
Hon Hai Precision Industry Co., Ltd. 264,000 1,644,403
Research In Motion Ltd. 12,500 1,417,500*
Yageo Corp., Sponsored GDR 1 2
-----------
3,061,905
ENERGY - ALTERNATIVE SOURCES 1.57%
- ----------------------------------------------------------------------------------------
JA Solar Holdings Co., Ltd., Sponsored ADR 12,500 872,625*
Suntech Power Holdings Co., Ltd., Sponsored ADR 15,000 1,234,800*
-----------
2,107,425
See notes to portfolios of investments and notes to financial statements.
64
CHINA REGION OPPORTUNITY FUND
PORTFOLIO OF INVESTMENTS (UNAUDITED) December 31, 2007
COMMON STOCKS SHARES VALUE
FINANCIAL SERVICES 3.49%
- ----------------------------------------------------------------------------------------
Hong Kong Exchanges & Clearing Ltd. 100,000 $ 2,831,822
Singapore Exchange Ltd. 200,000 1,862,014
-----------
4,693,836
FOOD & BEVERAGES 2.12%
- ----------------------------------------------------------------------------------------
China Yurun Food Group Ltd. 1,200,000 1,997,666
CJ CheilJedang Corp. 1,850 577,207*
CJ Corp. 3,150 273,701
-----------
2,848,574
GOLD MINING 6.78%
- ----------------------------------------------------------------------------------------
Kingsgate Consolidated Ltd. 2,599 10,586*
Lihir Gold Ltd. 200,000 632,400*
Olympus Pacific Minerals, Inc. 424,500 192,265*
Silk Road Resources Ltd. 210,000 227,216*
Sino Gold Ltd. 59,754 363,755*
Zhaojin Mining Industry Co., Ltd., H shares 800,000 3,339,703
Zijin Mining Group Co., Ltd., H shares 2,800,000 4,345,205
-----------
9,111,130
HOUSEHOLD APPLIANCES 2.27%
- ----------------------------------------------------------------------------------------
GOME Electrical Appliances Holdings, Ltd. 1,200,000 3,047,287
INSURANCE 4.68%
- ----------------------------------------------------------------------------------------
China Life Insurance Co., Ltd., H shares 800,000 4,140,001
Ping An Insurance Company of China Ltd., H shares 200,000 2,144,387
-----------
6,284,388
INTERNET 3.74%
- ----------------------------------------------------------------------------------------
Asia Broadband, Inc. 500,000 0*@
Baidu.com, Inc., Sponsored ADR 5,000 1,951,950*
Tencent Holdings Ltd. 400,000 3,078,068
-----------
5,030,018
MANUFACTURING 2.62%
- ----------------------------------------------------------------------------------------
China Infrastructure Machinery Holdings Ltd. 1,000,000 1,585,205
Peace Mark Holdings Ltd. 1,200,000 1,942,261
-----------
3,527,466
MEDICAL - PRODUCTS 1.55%
- ----------------------------------------------------------------------------------------
Shandong Weigao Group Medical Polymer Co., Ltd.,
H shares 900,000 2,077,696
See notes to portfolios of investments and notes to financial statements.
65
CHINA REGION OPPORTUNITY FUND
PORTFOLIO OF INVESTMENTS (UNAUDITED) December 31, 2007
COMMON STOCKS SHARES VALUE
METAL - ALUMINUM 0.33%
- ----------------------------------------------------------------------------------------
Global Alumina Products Corp. 223,000 $ 446,000*
METAL - COPPER 0.39%
- ----------------------------------------------------------------------------------------
Continental Minerals Corp. 243,080 389,154*
Toledo Mining Corp., plc 25,400 134,997*
-----------
524,151
NON-FERROUS METALS 2.22%
- ----------------------------------------------------------------------------------------
China Molybdenum Co., Ltd., H shares 500,000 913,160*
PT International Nickel Indonesia Tbk 200,000 2,034,716
Sterling Group Ventures, Inc. 510,000 35,700*
-----------
2,983,576
OIL & GAS - INTEGRATED 2.24%
- ----------------------------------------------------------------------------------------
China Petroleum & Chemical Corp., H shares 2,000,000 3,016,506
OIL & GAS EXPLORATION & PRODUCTION 2.22%
- ----------------------------------------------------------------------------------------
Big Sky Energy Corp. 201,150 15,086*
Big Sky Energy Corp. (RS) 100,000 7,146*@
CNOOC Ltd. 1,500,000 2,554,796
Green Dragon Gas Ltd. 62,949 405,392*
-----------
2,982,420
PAPER PRODUCTS 1.31%
- ----------------------------------------------------------------------------------------
Nine Dragons Paper Holdings Ltd. 700,000 1,757,833
PRECIOUS METALS 0.13%
- ----------------------------------------------------------------------------------------
TVI Pacific, Inc. 324,714 40,526*@
TVI Pacific, Inc., 144A 1,080,000 134,789*@
-----------
175,315
PUBLISHING 0.02%
- ----------------------------------------------------------------------------------------
Lingo Media Corp. 22,642 27,119*
REAL ESTATE COMPANIES 7.52%
- ----------------------------------------------------------------------------------------
Cheung Kong Holdings Ltd. 100,000 1,850,688
China Vanke Co., Ltd., B shares 800,000 2,077,696
Daying Modern Agricultural Co., Ltd., B shares 1 0*
Shimao Property Holdings Ltd. 900,000 2,294,699
Shui On Land Ltd. 600,000 705,647
See notes to portfolios of investments and notes to financial statements.
66
CHINA REGION OPPORTUNITY FUND
PORTFOLIO OF INVESTMENTS (UNAUDITED) December 31, 2007
COMMON STOCKS SHARES VALUE
REAL ESTATE COMPANIES (CONT'D)
- ----------------------------------------------------------------------------------------
Sun Hung Kai Properties Ltd. 150,000 $ 3,181,952
-----------
10,110,682
RETAIL 0.00%
- ----------------------------------------------------------------------------------------
China First Pencil Co., Ltd., B shares 1 2
SCHOOLS 1.69%
- ----------------------------------------------------------------------------------------
MegaStudy Co., Ltd. 8,000 2,264,793
SHIPBUILDING 0.63%
- ----------------------------------------------------------------------------------------
Samsung Heavy Industries Co., Ltd. 20,000 844,114*
SILVER MINING 1.57%
- ----------------------------------------------------------------------------------------
Silvercorp Metals, Inc. 223,200 2,107,207
TRANSPORTATION 2.78%
- ----------------------------------------------------------------------------------------
China COSCO Holdings Co., Ltd., H shares 600,000 1,654,461
China Shipping Container Lines Co., H shares 1,500,000 883,021
Cosco Corp. (Singapore) Ltd. 300,000 1,202,955
-----------
3,740,437
TRAVEL SERVICES 1.47%
- ----------------------------------------------------------------------------------------
China Travel International Investment Hong Kong Ltd. 3,000,000 1,977,658
- ----------------------------------------------------------------------------------------
TOTAL COMMON STOCKS 123,845,052
- ----------------------------------------------------------------------------------------
(cost $98,631,087)
EXCHANGE-TRADED FUNDS 1.26%
iShares Silver Trust 10,650 1,565,231*
streetTRACKS Gold Trust 1,500 123,690*
- ----------------------------------------------------------------------------------------
TOTAL EXCHANGE-TRADED FUNDS 1,688,921
- ----------------------------------------------------------------------------------------
(cost $1,691,038)
WARRANTS 0.00%
METAL - COPPER 0.00%
- ----------------------------------------------------------------------------------------
Verona Development Corp., Warrants (April 2008)
(cost $0) 400,000 0*@
- ----------------------------------------------------------------------------------------
TOTAL SECURITIES 125,533,973
- ----------------------------------------------------------------------------------------
(cost $100,322,125)
See notes to portfolios of investments and notes to financial statements.
67
CHINA REGION OPPORTUNITY FUND
PORTFOLIO OF INVESTMENTS (UNAUDITED) December 31, 2007
PRINCIPAL
REPURCHASE AGREEMENTS 3.13% AMOUNT VALUE
Joint Tri-Party Repurchase Agreement, Bear Stearns,
12/31/07, 1.25%, due 01/02/08, repurchase price
$1,558,781, collateralized by U.S. Treasury securities
held in a joint tri-party account (cost $1,558,673) $1,558,673 $ 1,558,673
Joint Tri-Party Repurchase Agreement, Merrill Lynch,
12/31/07, 1.00%, due 01/02/08, repurchase price
$2,649,429, collateralized by U.S. Treasury securities
held in a joint tri-party account (cost $2,649,429) 2,649,429 2,649,429
- ----------------------------------------------------------------------------------------
TOTAL REPURCHASE AGREEMENTS 4,208,102
- ----------------------------------------------------------------------------------------
(cost $4,208,102)
- ----------------------------------------------------------------------------------------
TOTAL INVESTMENTS 96.54% 129,742,075
- ----------------------------------------------------------------------------------------
(cost $104,530,227)
Other assets and liabilities, net 3.46% 4,649,041
-----------
NET ASSETS 100% $134,391,116
------------
See notes to portfolios of investments and notes to financial statements.
68
GLOBAL RESOURCES FUND
PORTFOLIO OF INVESTMENTS (UNAUDITED) December 31, 2007
COMMON STOCKS 85.65% SHARES VALUE
AGRICULTURAL CHEMICALS & FERTILIZERS 5.94%
- -----------------------------------------------------------------------------------------
Agrium, Inc. 355,000 $ 25,634,550
Monsanto Co. 175,000 19,545,750
Potash Corporation of Saskatchewan, Inc. 252,500 36,351,054
Spur Ventures, Inc. 386,000 225,333*
Terra Industries, Inc. 200,000 9,552,000*
The Mosaic Co. 100,000 9,434,000*
--------------
100,742,687
ALUMINUM 0.26%
- -----------------------------------------------------------------------------------------
Global Alumina Products Corp. 2,191,000 4,382,000*
BUILDING MATERIALS & CONSTRUCTION 1.25%
- -----------------------------------------------------------------------------------------
Chicago Bridge & Iron Company N.V. 350,000 21,154,000
COAL 4.38%
- -----------------------------------------------------------------------------------------
Bounty Industries Ltd. 22,000,000 1,637,933*+
China Coal Energy Co., H shares 5,000,000 15,743,033
Coalcorp Mining, Inc. 1,490,661 3,195,720*
PT Bumi Resources Tbk 35,000,000 22,086,768
Western Canadian Coal Corp., 144A 3,402,600 5,205,528*
Yanzhou Coal Mining Co., Ltd., H shares 5,200,000 10,270,485
Yanzhou Coal Mining Co., Ltd., Sponsored ADR 165,000 16,014,900
--------------
74,154,367
DATA PROCESSING & SOFTWARE 0.00%
- -----------------------------------------------------------------------------------------
Stockgroup Information Systems, Inc. 157,000 89,490*
DIAMOND MINING & EXPLORATION 0.14%
- -----------------------------------------------------------------------------------------
Diagem, Inc. 300,400 222,227*
Diamond Fields International Ltd. 112,000 11,273*
Diamond Fields International Ltd., 144A 9,000,000 905,843*
Diamonds North Resources Ltd. 75,000 56,615*
Rockwell Diamonds, Inc., 144A 950,000 583,262*
Vaaldiam Resources Ltd. 994,001 530,241*
--------------
2,309,461
DIVERSIFIED CHEMICALS 0.07%
- -----------------------------------------------------------------------------------------
FMC Corp. 21,700 1,183,735
See notes to portfolios of investments and notes to financial statements.
69
GLOBAL RESOURCES FUND
PORTFOLIO OF INVESTMENTS (UNAUDITED) December 31, 2007
COMMON STOCKS SHARES VALUE
FINANCIAL SERVICES 0.68%
- -----------------------------------------------------------------------------------------
GMP Capital Trust 422,500 $ 10,503,498
Jovian Capital Corp. 1,038,100 992,597*
--------------
11,496,095
FOOD & BEVERAGES 0.14%
- -----------------------------------------------------------------------------------------
CoolBrands International, Inc. 2,684,200 2,431,463*
FORESTRY 0.85%
- -----------------------------------------------------------------------------------------
Sino-Forest Corp., 144A 200,000 4,315,837*
Sino-Forest Corp., Class A 469,500 10,131,428*
--------------
14,447,265
GENERAL METAL & MINERAL MINING 10.05%
- -----------------------------------------------------------------------------------------
African Copper plc 1,530,000 1,991,122*
Altius Minerals Corp. 100,000 2,898,697*
Baja Mining Corp. 1,654,850 3,031,380*
BHP Billiton Ltd., Sponsored ADR 310,000 21,712,400
Blue Pearl Mining Ltd. 260,000 4,443,460*
Calibre Mining Corp. 807,600 276,367*
Cleveland-Cliffs, Inc. 192,205 19,374,264
Companhia Vale do Rio Doce, ADR 620,000 20,255,400
Consolidated Thompson Iron Mines Ltd. 1,847,273 11,880,705*
Crowflight Minerals, Inc. 1,119,000 687,021*
Dia Bras Exploration, Inc. 1,221,800 934,596*
European Nickel plc 685,782 681,273*
Investika Ltd. 701,100 2,192,973*
Jabiru Metals Ltd. 2,972,300 3,384,469*
JNR Resources, Inc. 1,245,300 2,431,566*
Minefinders Corp., Ltd. 404,134 4,563,820*
Mines Management, Inc. 262,970 896,728*
Mirabela Nickel Ltd. 1,280,000 7,601,027*
North American Tungsten Corp., Ltd. 245,000 320,568*
Pacifica Resources Ltd. 500,000 133,360*
Red Dragon Resources Corp. 3,895,000 1,372,100*+
Revett Minerals, Inc. 5,048,000 4,369,463*+
Rio Tinto plc, Sponsored ADR 105,500 44,299,450
Savant Explorations Ltd. 54,191 15,545*
Sterling Group Ventures, Inc. 524,700 36,729*
Terrane Metals Corp. 2,337,000 917,347*
Thompson Creek Metals Co., Inc. 374,200 6,395,165*
Titanium Resources Group Ltd. 1,000,000 1,549,743*
Toledo Mining Corp., plc 306,200 1,627,399*
--------------
170,274,137
See notes to portfolios of investments and notes to financial statements.
70
GLOBAL RESOURCES FUND
PORTFOLIO OF INVESTMENTS (UNAUDITED) December 31, 2007
COMMON STOCKS SHARES VALUE
GOLD & COPPER MINING 6.11%
- -----------------------------------------------------------------------------------------
Continental Minerals Corp. 1,026,227 $ 1,649,635*
European Minerals Corp. 1,503,250 2,148,473*
Fortress Minerals Corp. 663,100 880,974*
Freeport-McMoRan Copper & Gold, Inc. 340,000 34,829,600
Global Copper Corp. 920,000 5,555,835*
Inmet Mining Corp. 374,100 30,329,379
Ivanhoe Mines Ltd. 302,200 3,284,948*
Los Andes Copper Ltd. 1,750,000 968,748*
Northern Dynasty Minerals Ltd. 1,209,000 15,892,044*
Northern Dynasty Minerals Ltd., 144A 250,000 3,286,196*
Suramina Resources, Inc. 1,171,700 1,533,098*
Taseko Mines Ltd. 614,000 3,194,988*
--------------
103,553,918
GOLD MINING 2.49%
- -----------------------------------------------------------------------------------------
Agnico-Eagle Mines Ltd. 31,900 1,742,697
Canadian Gold Hunter Corp. 1,061,000 1,484,364*
Central Sun Mining, Inc. 85,714 101,799*
Century Mining Corp. 225,911 63,666*
Chesapeake Gold Corp. 500,000 4,146,746*
Corona Gold Ltd. 50,000 438*@
Crystallex International Corp. 155,000 353,400*
GBS Gold International, Inc. 25,700 33,627*
Kinross Gold Corp. 27,184 500,697*
Medoro Resources Ltd. 830,514 334,362*
Metallica Resources, Inc. 250,000 1,343,667*
Nautilus Minerals, Inc. 380,000 1,434,251*
Olympus Pacific Minerals, Inc. 375,000 169,845*
Peak Gold Ltd. 8,856,214 5,348,224*
Planet Exploration, Inc. 160,000 78,909*
QGX Ltd. 378,700 1,139,664*
Red Back Mining, Inc. 788,780 5,628,756*
Red Back Mining, Inc., 144A 385,000 2,747,370*
Reunion Gold Corp. 588,800 752,630*
Rusoro Mining Ltd. 159,700 257,179*
Rusoro Mining Ltd., 144A 433,333 697,834*
Silk Road Resources Ltd. 240,000 259,675*
TVI Pacific, Inc. 3,867,428 482,674*@
TVI Pacific, Inc., 144A 2,000,000 249,610*@
Virginia Gold Mines, Inc. 215,100 1,751,456*
X-Cal Resources Ltd. 412,500 76,808*
Yamana Gold, Inc. 854,652 11,087,982
--------------
42,268,330
See notes to portfolios of investments and notes to financial statements.
71
GLOBAL RESOURCES FUND
PORTFOLIO OF INVESTMENTS (UNAUDITED) December 31, 2007
COMMON STOCKS SHARES VALUE
GOLD/MINERAL ROYALTY COMPANIES 0.04%
- -----------------------------------------------------------------------------------------
Aberdeen International, Inc. 1,256,250 $ 695,422*
INDEPENDENT POWER PRODUCERS 0.80%
- -----------------------------------------------------------------------------------------
Reliant Energy, Inc. 520,000 13,644,800*
OIL & GAS - INTEGRATED 11.13%
- -----------------------------------------------------------------------------------------
ConocoPhillips 210,000 18,543,000
Hess Corp. 100,000 10,086,000
Marathon Oil Corp. 655,000 39,863,300
Occidental Petroleum Corp. 595,000 45,809,050
Petroleo Brasileiro S.A., ADR 569,000 54,749,180
Suncor Energy, Inc. 180,000 19,571,400
--------------
188,621,930
OIL & GAS DRILLING 4.48%
- -----------------------------------------------------------------------------------------
Atwood Oceanics, Inc. 150,000 15,036,000*
Diamond Offshore Drilling, Inc. 160,200 22,748,400
Noble Corp. 290,000 16,387,900
Transocean, Inc. 130,000 18,609,500*
Xtreme Coil Drilling Corp. 400,000 3,196,618*
--------------
75,978,418
OIL & GAS EQUIPMENT & SERVICES 13.35%
- -----------------------------------------------------------------------------------------
Acergy S.A. 580,000 12,766,954
Cameron International Corp. 505,000 24,305,650*
Core Laboratories N.V. 177,500 22,137,800*
FMC Technologies, Inc. 430,000 24,381,000*
Hornbeck Offshore Services, Inc. 315,000 14,159,250*
McDermott International, Inc. 995,000 58,734,850*
Oceaneering International, Inc. 332,500 22,393,875*
Petrowest Energy Services Trust 125,000 327,110
Schlumberger Ltd. 370,000 36,396,900
Sevan Marine ASA 707,700 10,584,193*
--------------
226,187,582
OIL & GAS EXPLORATION & PRODUCTION - JUNIOR 6.70%
- -----------------------------------------------------------------------------------------
Abraxas Petroleum Corp. 1,025,000 3,956,500*
ATP Oil & Gas Corp. 225,000 11,371,500*
Bankers Petroleum Ltd. 1,600,000 1,401,037*
Bayou Bend Petroleum Ltd. 300,000 163,052*
Big Sky Energy Corp. 3,409,150 255,686*
Big Sky Energy Corp. (RS) 1,400,000 100,045*@
Birchcliff Energy Ltd. 1,104,800 8,128,517*
See notes to portfolios of investments and notes to financial statements.
72
GLOBAL RESOURCES FUND
PORTFOLIO OF INVESTMENTS (UNAUDITED) December 31, 2007
COMMON STOCKS SHARES VALUE
OIL & GAS EXPLORATION & PRODUCTION - JUNIOR (CONT'D)
- -----------------------------------------------------------------------------------------
Cano Petroleum, Inc. 1,371,300 $ 9,448,257*
Coastal Energy Co. 2,032,500 8,898,773*
Energy XXI Bermuda Ltd. 419,000 2,000,725*
Exile Resources, Inc. 2,100,000 216,647*+
Foothills Resources, Inc. 12,000 9,720*
Foothills Resources, Inc. (RS) 1,266,667 963,934*@
Gran Tierra Energy, Inc. 3,950,675 10,350,768*
Green Dragon Gas Ltd. 828,831 5,337,672*
Ivory Energy, Inc. 4,603,166 2,965,151*+
Legacy Energy LLC, 144A (RS) 2,631,580 7,236,845@
Pacific Stratus Energy Ltd. 600,000 7,403,754*
Pearl Exploration and Production Ltd. 1,550,400 4,057,209*
Petro Rubiales Energy Corp. 12,295,211 17,943,794*
Royalite Petroleum Co., Inc. 33,000 11,550*+
Royalite Petroleum Co., Inc. (RS) 2,233,333 665,533*@+
Silverwing Energy, Inc. 1,075,000 205,576*
Tyner Resources Ltd. 850,000 98,385*
Verona Development Corp. 658,800 102,777*
White Nile Ltd. 13,116,058 10,228,408*
--------------
113,521,815
OIL & GAS EXPLORATION & PRODUCTION - SENIOR 6.97%
- -----------------------------------------------------------------------------------------
Addax Petroleum Corp. 275,000 11,887,927
Apache Corp. 205,000 22,045,700
Denbury Resources, Inc. 575,000 17,106,250*
Devon Energy Corp. 200,000 17,782,000
Goodrich Petroleum Corp. 444,600 10,056,852*
Nexen, Inc. 100,000 3,230,098
Noble Energy, Inc. 365,000 29,024,800
Petrobank Energy & Resources Ltd. 120,000 7,031,755*
--------------
118,165,382
OIL & GAS REFINING & MARKETING 3.03%
- -----------------------------------------------------------------------------------------
Alon USA Energy, Inc. 445,000 12,095,100
BA Energy, Inc. (RS) 421,100 2,966,836*@
Holly Corp. 300,000 15,267,000
Valero Energy Corp. 300,000 21,009,000
--------------
51,337,936
OIL & GAS ROYALTY TRUST 0.44%
- -----------------------------------------------------------------------------------------
Canadian Oil Sands Trust 65,200 2,540,277
Harvest Energy Trust 240,000 4,983,342
--------------
7,523,619
See notes to portfolios of investments and notes to financial statements.
73
GLOBAL RESOURCES FUND
PORTFOLIO OF INVESTMENTS (UNAUDITED) December 31, 2007
COMMON STOCKS SHARES VALUE
PLATINUM GROUP METALS 2.07%
- -----------------------------------------------------------------------------------------
Anooraq Resources Corp. 735,000 $ 3,388,153*
Aquarius Platinum Ltd. 20,586 235,182
Beartooth Platinum Corp. 2,657,500 267,475*
Eastern Platinum Ltd. 10,100,600 29,176,913*
Osmium Holdings S.A. (RS) 104 10,400*@
Platinum Group Metals Ltd. 492,700 1,963,758*
--------------
35,041,881
SILVER MINING 0.90%
- -----------------------------------------------------------------------------------------
Silvercorp Metals, Inc. 1,613,080 15,228,917
STEEL MANUFACTURING 1.39%
- -----------------------------------------------------------------------------------------
Companhia Siderurgica Nacional S.A., Sponsored ADR 120,000 10,748,400
POSCO, ADR 85,000 12,784,850
--------------
23,533,250
SUGAR/ETHANOL 0.19%
- -----------------------------------------------------------------------------------------
Infinity Bio-Energy Ltd. 682,400 3,156,100*
TRANSPORTATION 1.33%
- -----------------------------------------------------------------------------------------
Burlington Northern Santa Fe Corp. 15,000 1,248,450
DryShips, Inc. 15,000 1,161,000
Golden Ocean Group Ltd. 1,500,000 9,192,343
Tidewater, Inc. 200,000 10,972,000
--------------
22,573,793
URANIUM 0.47%
- -----------------------------------------------------------------------------------------
Paladin Resources Ltd. 1,270,000 7,401,037*
UMC Energy plc 1,000,000 283,126*
Uranium North Resources Corp. 34,666 17,446*
Western Prospector Group Ltd. 188,100 189,321*
--------------
7,890,930
- -----------------------------------------------------------------------------------------
TOTAL COMMON STOCKS 1,451,588,723
- -----------------------------------------------------------------------------------------
(cost $1,146,831,355)
PREFERRED STOCK 0.24%
OIL & GAS EXPLORATION & PRODUCTION - JUNIOR 0.24%
- -----------------------------------------------------------------------------------------
Trident Resources Corp., Series B, Preferred Stock
(RS) (cost $5,000,000) 80,000 4,050,000*@
See notes to portfolios of investments and notes to financial statements.
74
GLOBAL RESOURCES FUND
PORTFOLIO OF INVESTMENTS (UNAUDITED) December 31, 2007
EXCHANGE-TRADED FUND 0.45% SHARES VALUE
United States Oil Fund, L.P. 100,000 $ 7,575,000*
(cost $7,234,482)
WARRANTS 5.94%
COAL 0.02%
- -----------------------------------------------------------------------------------------
Bounty Industries Ltd., Warrants (December 2011) 5,500,000 33,722*
Coalcorp Mining, Inc., Warrants (February 2011) 1,188,071 269,051*
Coalcorp Mining, Inc., Warrants (August 2011) 892,928 107,847*
Western Canadian Coal Corp., 144A, Warrants
(June 2012) 425,000 0*@
--------------
410,620
DIAMOND MINING & EXPLORATION 0.00%
- -----------------------------------------------------------------------------------------
Rockwell Diamonds, Inc., Warrants (November 2008) 950,000 0*@
GENERAL METAL & MINERAL MINING 0.21%
- -----------------------------------------------------------------------------------------
Baja Mining Corp., Warrants (April 2008) 1,055,500 605,541*@
Baja Mining Corp., Warrants (April 2009) 61,770 55,954*
Blue Pearl Mining Ltd., Warrants (October 2011) 130,000 1,380,404*
Calibre Mining Corp., Warrants (January 2008) 187,500 0*@
Farallon Resources Ltd., Warrants (November 2008) 3,000,000 301,948*@
Mines Management, Inc., Warrants (April 2012) 140,000 231,000*
Red Dragon Resources Corp., Warrants (June 2008) 1,860,000 0*@
Selwyn Resources Ltd., Warrants (March 2008) 125,000 0*@
Stingray Copper, Inc., Warrants (April 2009) 1,000,000 130,844*
Terrane Metals Corp., Warrants (November 2008) 606,000 0*@
Terrane Metals Corp., Warrants (June 2012) 562,500 104,738*
Thompson Creek Metals Co., Inc., Warrants
(October 2011) 72,591 770,807*
--------------
3,581,236
GOLD & COPPER MINING 0.14%
- -----------------------------------------------------------------------------------------
Continental Minerals Corp., Warrants (February 2008) 356,060 0*@
European Minerals Corp., Warrants (December 2008) 219,125 154,383*
European Minerals Corp., Warrants (April 2010) 950,000 764,934*
European Minerals Corp., Warrants (March 2011) 665,000 501,987*
Los Andes Copper Ltd., Warrants (February 2008) 1,750,000 0*@
New Gold, Inc., Warrants (June 2017) 700,000 937,044*
--------------
2,358,348
GOLD MINING 2.30%
- -----------------------------------------------------------------------------------------
Central Sun Mining, Inc., Warrants (November 2008) 300,000 4,529*
Chesapeake Gold Corp., Warrants (February 2012) 96,178 402,698*
Goldcorp, Inc., Warrants (June 2011) 1,463,766 14,732,871*
IAMGOLD Corp., Warrants (August 2008) 353,680 249,183*
See notes to portfolios of investments and notes to financial statements.
75
GLOBAL RESOURCES FUND
PORTFOLIO OF INVESTMENTS (UNAUDITED) December 31, 2007
WARRANTS SHARES VALUE
GOLD MINING (CONT'D)
- -----------------------------------------------------------------------------------------
Kinross Gold Corp., Warrants (September 2011) 109,400 $ 309,410*
Metallica Resources, Inc., Warrants (December 2008) 259,000 623,028*
Peak Gold Ltd., Warrants (April 2012) 1,389,500 265,719*
Rusoro Mining Ltd., Warrants (November 2011) 216,667 0*@
Yamana Gold. Inc., Warrants (May 2008) 1,595,081 8,219,833*
Yamana Gold, Inc., Warrants (November 2008) 2,301,112 12,344,549*
Yamana Gold, Inc., Warrants (February 2010) 723,643 1,806,285*
--------------
38,958,105
GOLD/MINERAL ROYALTY COMPANIES 0.00%
- -----------------------------------------------------------------------------------------
Aberdeen International, Inc., Warrants (July 2012) 500,000 0*@
OIL & GAS DRILLING 0.08%
- -----------------------------------------------------------------------------------------
Vantage Energy Services, Warrants (May 2011) 1,000,000 1,300,000*
OIL & GAS EXPLORATION & PRODUCTION - JUNIOR 0.61%
- -----------------------------------------------------------------------------------------
Bankers Petroleum Ltd., Warrants (November 2009) 2,954,600 892,134*
Coastal Energy Co., Warrants (July 2010) 1,000,000 0*@
Energy XXI Bermuda Ltd., Warrants (October 2009) 790,000 750,500*
Exile Resources, Inc., Warrants (May 2008) 1,050,000 0*@
Foothills Resources, Inc., Warrants (September 2011)
(RS) 633,334 0*@
Gran Tierra Energy, Inc., Warrants (June 2011) 1,550,000 2,433,500*@
Ivory Energy, Inc., Warrants (February 2008) 2,499,916 0*@
Ivory Energy, Inc., Warrants (December 2008) 650,000 0*@
Pacific Stratus Energy Ltd., Warrants (July 2008) 748,000 6,218,590*@
Petro Rubiales Energy Corp., Warrants (July 2012) 9,000 4,982*
Royalite Petroleum Co., Inc., Warrants
(January 2008) (RS) 675,000 0*@
Royalite Petroleum Co., Inc., Warrants
(February 2008) (RS) 441,667 0*@
Silverwing Energy, Inc., Warrants (February 2008) 1,075,000 37,869*
Trident Resources Corp., Warrants (March 2013) (RS) 80,000 0*@
--------------
10,337,575
PLATINUM GROUP METALS 0.08%
- -----------------------------------------------------------------------------------------
Eastern Platinum Ltd., Warrants (April 2008) 356,200 394,364*
Eastern Platinum Ltd., Warrants (March 2009) 900,000 942,076*
--------------
1,336,440
SILVER MINING 2.39%
- -----------------------------------------------------------------------------------------
Silver Wheaton Corp., Warrants (August 2009) 6,579,070 17,746,372*
Silver Wheaton Corp., Warrants (November 2009) 4,193,020 10,297,387*
Silver Wheaton Corp., Warrants (December 2010) 1,385,840 12,414,047*
--------------
40,457,806
See notes to portfolios of investments and notes to financial statements.
76
GLOBAL RESOURCES FUND
PORTFOLIO OF INVESTMENTS (UNAUDITED) December 31, 2007
WARRANTS SHARES VALUE
URANIUM 0.11%
- -----------------------------------------------------------------------------------------
Denison Mines Corp., Warrants (March 2011) 220,400 $ 1,952,111*
- -----------------------------------------------------------------------------------------
TOTAL WARRANTS 100,692,241
- -----------------------------------------------------------------------------------------
(cost $55,928,619)
SPECIAL WARRANTS 0.46%
GOLD MINING 0.36%
- -----------------------------------------------------------------------------------------
Peak Gold Ltd., Special Warrants (RS) 10,200,000 6,159,730*@
OIL & GAS EXPLORATION & PRODUCTION - JUNIOR 0.09%
- -----------------------------------------------------------------------------------------
Govi HighPower Exploration, Special Warrants (RS) 750,000 1,500,000@
PLATINUM GROUP METALS 0.01%
- -----------------------------------------------------------------------------------------
Ivanhoe Nickel and Platinum Ltd., Special Warrants
(RS) 12,500 71,008*@
- -----------------------------------------------------------------------------------------
TOTAL SPECIAL WARRANTS 7,730,738
- -----------------------------------------------------------------------------------------
(cost $9,305,787)
UNITS 0.30%
GOLD MINING 0.30%
- -----------------------------------------------------------------------------------------
Rusoro Mining Ltd., Units (RS)
(cost $7,712,712) 3,150,000 5,072,719*@
PURCHASED OPTIONS 2.33% CONTRACTS
AGRICULTURAL CHEMICALS & FERTILIZERS 0.18%
- -----------------------------------------------------------------------------------------
Monsanto Co., Strike Price 100, Call, Expiration
Jan. 2009 (premium $1,350,200) 550 1,584,000
Potash Corporation of Saskatchewan, Inc., Strike
Price 130, Call, Expiration Jun. 2009
(premium $1,091,500) 500 1,460,000
--------------
3,044,000
EXCHANGE-TRADED FUNDS 1.11%
- -----------------------------------------------------------------------------------------
Energy Select Sector SPDR Fund, Strike Price 75,
Call, Expiration March 2008 (premium $15,108,049) 25,250 18,811,250
See notes to portfolios of investments and notes to financial statements.
77
GLOBAL RESOURCES FUND
PORTFOLIO OF INVESTMENTS (UNAUDITED) December 31, 2007
PURCHASED OPTIONS CONTRACTS VALUE
GOLD MINING 0.19%
- -----------------------------------------------------------------------------------------
Agnico-Eagle Mines Ltd. Strike Price 35, Call,
Expiration Jan. 2009 (premium $2,744,600) 1,368 $ 3,173,760
OIL & GAS - INTEGRATED 0.37%
- -----------------------------------------------------------------------------------------
ConocoPhillips, Strike Price 85, Call, Expiration
Jan. 2009 (premium $1,117,900) 1,050 1,412,250
Exxon Mobil Corp., Strike Price 90, Call, Expiration
Jan. 2009 (premium $1,260,500) 1,000 1,340,000
Hess Corp., Strike Price 90, Call, Expiration
Jan. 2009 (premium $1,198,011) 588 1,458,240
Marathon Oil Corp., Strike Price 60, Call, Expiration
Jan. 2009 (premium $506,403) 534 560,700
Occidental Petroleum Corp., Strike Price 70, Call,
Expiration Jan. 2009 (premium $1,243,000) 1,000 1,515,000
--------------
6,286,190
OIL & GAS DRILLING 0.14%
- -----------------------------------------------------------------------------------------
Transocean, Inc., Strike Price 140, Call, Expiration
Jan. 2009 (premium $1,884,670) 1,000 2,460,000
OIL & GAS EQUIPMENT & SERVICES 0.34%
- -----------------------------------------------------------------------------------------
Oil Service Holders, Strike Price 190, Call,
Expiration Apr. 2008 (premium $4,520,125) 3,000 4,305,000
Schlumberger Ltd., Strike Price 100, Call, Expiration
Jan. 2009 (premium $1,370,500) 1,000 1,450,000
--------------
5,755,000
- -----------------------------------------------------------------------------------------
TOTAL PURCHASED OPTIONS 39,530,200
- -----------------------------------------------------------------------------------------
(cost $33,395,458)
RIGHTS 0.03% SHARES
GOLD MINING 0.03%
- -----------------------------------------------------------------------------------------
Chesapeake Gold Corp., Series 1, Class A, Rights (RS) 20,135 550,012*@
(cost $313,947)
See notes to portfolios of investments and notes to financial statements.
78
GLOBAL RESOURCES FUND
PORTFOLIO OF INVESTMENTS (UNAUDITED) December 31, 2007
PRINCIPAL
CONVERTIBLE DEBENTURE 0.34% AMOUNT VALUE
GOLD & COPPER MINING 0.34%
- -----------------------------------------------------------------------------------------
New Gold, Inc., 10.00%, maturity 6/28/17
(cost $6,539,611) $ 7,000,000 $ 5,812,490*@
NOTES 0.35%
COAL 0.35%
- -----------------------------------------------------------------------------------------
Coalcorp Mining, Inc., 12.00%, maturity 8/31/11 2,999,000 2,927,774@
Western Canadian Coal Corp., 7.50%, maturity 3/24/11 4,000,000 2,959,086@
- -----------------------------------------------------------------------------------------
TOTAL NOTES 5,886,860
- -----------------------------------------------------------------------------------------
(cost $6,072,403)
- -----------------------------------------------------------------------------------------
TOTAL SECURITIES 1,628,488,983
- -----------------------------------------------------------------------------------------
(cost $1,278,334,374)
REPURCHASE AGREEMENTS 3.03%
Joint Tri-Party Repurchase Agreement, Bear Stearns,
12/31/07, 1.25%, due 01/02/08, repurchase price
$19,033,540, collateralized by U.S. Treasury
securities held in a joint tri-party account
(cost $19,032,218) 19,032,218 19,032,218
Joint Tri-Party Repurchase Agreement, Merrill Lynch,
12/31/07, 1.00%, due 01/02/08, repurchase price
$32,352,696, collateralized by U.S. Treasury
securities held in a joint tri-party account
(cost $32,350,899) 32,350,899 32,350,899
- -----------------------------------------------------------------------------------------
TOTAL REPURCHASE AGREEMENTS 51,383,117
- -----------------------------------------------------------------------------------------
(cost $51,383,117)
- -----------------------------------------------------------------------------------------
TOTAL INVESTMENTS 99.12% 1,679,872,100
- -----------------------------------------------------------------------------------------
(cost $1,329,717,491)
Other assets and liabilities, net 0.88% 14,956,001
--------------
NET ASSETS 100% $1,694,828,101
--------------
See notes to portfolios of investments and notes to financial statements.
79
WORLD PRECIOUS MINERALS FUND
PORTFOLIO OF INVESTMENTS (UNAUDITED) December 31, 2007
COMMON STOCKS 61.89% SHARES VALUE
DATA PROCESSING & SOFTWARE 0.06%
- ------------------------------------------------------------------------------------------
Stockgroup Information Systems, Inc. 1,016,000 $ 612,880*
DIAMOND MINING & EXPLORATION 1.34%
- ------------------------------------------------------------------------------------------
Diagem, Inc. 358,350 265,097*
Diamond Fields International Ltd. 1,932,000 194,454*
Diamonds North Resources Ltd. 2,850,400 2,151,678*
Harry Winston Diamond Corp. 87,000 2,841,478
Metalex Ventures Ltd. 191,000 64,400*
Olivut Resources Ltd. 600,000 564,642*
Rockwell Diamonds, Inc. 108,800 66,799*
Rockwell Diamonds, Inc., 144A 2,575,000 1,580,947*
Shore Gold, Inc. 1,091,500 5,064,481*
Tahera Diamond Corp. 275,000 22,143*
Vaaldiam Resources Ltd. 1,137,999 607,055*
--------------
13,423,174
FINANCIAL SERVICES 1.04%
- ------------------------------------------------------------------------------------------
GMP Capital Trust 344,800 8,571,848
Jovian Capital Corp. 1,960,100 1,874,183*
--------------
10,446,031
GOLD/MINERAL EXPLORATION & DEVELOPMENT 18.00%
- ------------------------------------------------------------------------------------------
African Gold Group, Inc. 1,030,900 1,006,465*
Africo Resources Ltd. 26,228 47,517*
Alexis Minerals Corp. 74,000 58,839*
Amarc Resources Ltd. 688,545 346,507*
Amerix Precious Metals Corp. 729,275 271,583*
Andean Resources Ltd. 3,917,500 7,686,198*
Andina Minerals, Inc. 449,100 2,079,271*
Atikwa Minerals Corp. 3,012,333 250,131*+
AuEx Ventures, Inc. 98,100 201,423*
Aurelian Resources, Inc. 413,200 3,185,659*
Bendigo Mining NL 1,500,000 440,140*
Brazauro Resources Corp. 1,377,000 776,126*
Canadian Gold Hunter Corp. 925,400 1,294,657*
Candente Resource Corp. 291,300 551,199*
Carnavale Resources Ltd. 2,348,857 1,851,627*+
Carnavale Resources Ltd. (RS) 1,000,000 1,233,267*@+
Carpathian Gold, Inc. 1,155,300 546,516*
Central African Gold plc 590,000 328,228*
Chesapeake Gold Corp. 1,092,549 9,061,047*
Continental Minerals Corp. 753,946 1,214,145*
Continental Precious Minerals, Inc. 184,000 314,831*
Coral Gold Resources Ltd. 218,000 136,037*
See notes to portfolios of investments and notes to financial statements.
80
WORLD PRECIOUS MINERALS FUND
PORTFOLIO OF INVESTMENTS (UNAUDITED) December 31, 2007
COMMON STOCKS SHARES VALUE
GOLD/MINERAL EXPLORATION & DEVELOPMENT (CONT'D)
- -----------------------------------------------------------------------------------------
Corona Gold Ltd. 812,500 $ 7,117*@
Corriente Resources, Inc., Class A 593,200 3,230,046*
Dumont Nickel, Inc. 2,806,500 225,978*
Eastmain Resources, Inc. 618,000 447,849*
ECU Silver Mining, Inc. 1,100,000 2,402,496*
Entree Gold, Inc. 1,015,000 2,564,189*
Erdene Gold, Inc. 681,500 761,376*
European Minerals Corp. 2,647,300 3,756,925*
EXMIN Resources, Inc. 1,119,000 399,824*
EXMIN Resources, Inc., 144A 1,000,000 357,305*
Farallon Resources Ltd. 705,000 496,704*
First Point Minerals Corp. 2,158,000 266,071*
Fortress Minerals Corp. 460,900 612,338*
Frontier Pacific Mining Corp. 1,439,500 1,086,634*
Gabriel Resources Ltd. 1,239,800 2,458,262*
Gold Summit Corp. 448,000 60,873*
Golden Odyssey Mining, Inc. 1,786,000 251,663*
Grandview Gold, Inc. 1,443,000 914,992*
Great Basin Gold Ltd. 2,281,000 6,083,891*
Greystar Resources Ltd. 408,100 2,587,721*
Guyana Goldfields, Inc. 150,500 1,098,208*
Hainan Mining Corp. (RS) 2,018,700 2,727,381@
Inca Pacific Resources, Inc. 216,700 362,057*
International Minerals Corp. 1,034,100 6,057,533*
Ivanhoe Mines Ltd. 729,900 7,934,095*
KazakhGold Group Ltd., GDR 1,818 46,813*
Kings Minerals NL 15,200,000 8,520,755*
Lake Shore Gold Corp. 632,000 1,113,180*
Latitude Resources plc 2,940,000 204,447*
Laurion Mineral Exploration, Inc. 117,000 18,253*
Leyshon Resources Ltd. 2,245,000 1,126,271*
Linear Gold Corp. 1,116,700 2,652,521*
Marengo Mining Ltd. 1,100,000 342,039*
Medoro Resources Ltd. 710,942 286,223*
Metallic Ventures Gold, Inc. 1,341,300 2,970,017*
Mindoro Resources Ltd. 1,841,000 1,111,771*
Mindoro Resources Ltd., 144A 1,500,000 905,843*
Minefinders Corp., Ltd. 864,766 9,765,663*
Mirasol Resources Ltd. 215,000 162,297*
Moss Lake Gold Mines Ltd. 3,122,000 1,209,773*+
Moto Goldmines Ltd. 475,000 1,745,005*
Moydow Mines International, Inc. 455,000 91,591*
Nautilus Minerals, Inc. 242,000 913,391*
New Gold, Inc. 114,000 584,959*
New Pacific Metals Corp. 581,900 1,171,355*
Northern Dynasty Minerals Ltd. 864,150 11,359,065*
See notes to portfolios of investments and notes to financial statements.
81
WORLD PRECIOUS MINERALS FUND
PORTFOLIO OF INVESTMENTS (UNAUDITED) December 31, 2007
COMMON STOCKS SHARES VALUE
GOLD/MINERAL EXPLORATION & DEVELOPMENT (CONT'D)
- -----------------------------------------------------------------------------------------
Northern Dynasty Minerals Ltd., 144A 250,000 $ 3,286,196*
OceanaGold Corp. 846,000 2,247,939*
Odyssey Resources Ltd. 3,824,000 173,197*
Olympus Pacific Minerals, Inc. 1,519,000 687,988*
Osisko Exploration Ltd. 255,000 1,514,267*
Oxus Gold plc 200,000 171,862*
Pacific North West Capital Corp. 1,661,466 602,010*
Pacific Rim Mining Corp. 5,248,600 5,619,414*
Paragon Minerals Corp. 90,000 89,678*
Pelangio Mines, Inc. 891,700 2,441,170*
Planet Exploration, Inc. 959,500 473,207*
Platte River Gold U.S., Inc. (RS) 948,500 2,845,500*@
Premier Gold Mines Ltd. 381,900 922,510*
Q2 Gold Resources, Inc. (RS) 201,333 0*@
QGX Ltd. 948,200 2,853,523*
Radius Gold, Inc. 1,623,700 694,552*
Reunion Gold Corp. 2,111,000 2,698,375*+
Romarco Minerals, Inc. 14,171,206 3,565,801*+
Rubicon Minerals Corp. 169,600 250,930*
San Anton Resource Corp. 1,250,200 968,904*
Simberi Mining Corp. 806,000 52,730*
Solitario Resources Corp. 880,900 4,699,079*
Southwestern Resources Corp. 20,000 13,084*
St. Andrew Goldfields Ltd. 847,549 452,117*
Staccato Gold Resources Ltd. 3,036,500 748,773*
Stratagold Corp. 3,634,400 695,019*
Strongbow Exploration, Inc. 848,500 409,924*
Terrane Metals Corp. 3,628,000 1,424,105*
US Gold Corp. 1,509,406 4,628,085*
Verena Minerals Corp. 1,755,500 530,069*
VG Gold Corp. 5,733,510 1,990,903*+
Victoria Resources Corp. 285,000 407,327*
Virginia Gold Mines, Inc. 549,000 4,470,243*
Wesdome Gold Mines Ltd. 409,200 543,651*
West Timmins Mining, Inc. 716,000 648,583*
X-Cal Resources Ltd. 4,340,500 808,205*
--------------
180,963,093
GOLD/MINERAL ROYALTY COMPANIES 1.61%
- ------------------------------------------------------------------------------------------
Aberdeen International, Inc. 2,293,500 1,269,614*
Franco-Nevada Corp. 215,000 3,278,396*
International Royalty Corp. 647,450 3,603,642
Royal Gold, Inc. 262,100 7,999,292
--------------
16,150,944
See notes to portfolios of investments and notes to financial statements.
82
WORLD PRECIOUS MINERALS FUND
PORTFOLIO OF INVESTMENTS (UNAUDITED) December 31, 2007
COMMON STOCKS SHARES VALUE
INTERMEDIATE & JUNIOR GOLD PRODUCERS 14.98%
- ------------------------------------------------------------------------------------------
Agnico-Eagle Mines Ltd. 265,420 $ 14,526,248
Aurizon Mines Ltd. 399,100 1,554,544*
Avnel Gold Mining Ltd. 19,900 9,013*
Central Sun Mining, Inc. 463,999 551,073*
Century Mining Corp. 2,954,559 832,647*
Crystallex International Corp. 856,435 1,955,825*
DRDGOLD Ltd., Sponsored ADR 2,500 17,737*
Emperor Mines Ltd. 1,030,000 64,055*
GBS Gold International, Inc. 118,750 155,377*
High River Gold Mines Ltd. 1,017,900 2,909,603*
IAMGOLD Corp. 1 8
Jaguar Mining, Inc. 2,259,177 27,490,766*
Kingsgate Consolidated Ltd. 347,776 1,416,469*
Metallica Resources, Inc. 526,900 2,831,912*
Nevsun Resources Ltd. 100,000 231,493*
Peak Gold Ltd. 8,143,760 4,917,977*
Perseverance Corp., Ltd. 528,887 90,334*
Randgold Resources Ltd., ADR 1,560,134 57,927,775
Red Back Mining, Inc. 1,094,000 7,806,814*
Red Back Mining, Inc., 144A 770,000 5,494,741*
Resolute Mining Ltd. 1,500,000 2,305,807*
Rusoro Mining Ltd. 280,600 451,875*
Rusoro Mining Ltd., 144A 1,120,000 1,803,633*
Sino Gold Mining Ltd. 1,503,479 9,152,413*
St. Barbara Ltd. 1,100,000 751,522*
TVI Pacific, Inc. 10,349,428 1,295,338*@
TVI Pacific, Inc., 144A 2,291,428 282,304*@
Zhaojin Mining Industry Co., Ltd., H shares 454,100 1,895,699
Zijin Mining Group Co., Ltd., H shares 1,171,800 1,818,468
--------------
150,541,470
METAL & MINERAL MINING & EXPLORATION 7.29%
- ------------------------------------------------------------------------------------------
Amerigo Resources Ltd. 1,815,200 4,202,063
AMT International Mining Corp. 1,000,000 17,110*@
Baja Mining Corp. 965,967 1,769,473*
Breakwater Resources Ltd. 450,000 779,025*
Calibre Mining Corp. 2,348,200 803,571*
Coalcorp Mining, Inc. 46,071 98,768*
Dia Bras Exploration, Inc. 1,304,800 998,086*
European Nickel plc 337,927 335,705*
Impact Silver Corp. 28,000 48,754*
Independence Group NL 493,950 3,859,245
Investika Ltd. 273,300 825,347*
Jabiru Metals Ltd. 2,000,000 2,277,340*
JNR Resources, Inc. 429,500 838,639*
See notes to portfolios of investments and notes to financial statements.
83
WORLD PRECIOUS MINERALS FUND
PORTFOLIO OF INVESTMENTS (UNAUDITED) December 31, 2007
COMMON STOCKS SHARES VALUE
METAL & MINERAL MINING & EXPLORATION (CONT'D)
- -----------------------------------------------------------------------------------------
Linear Metals Corp. 806,910 $ 958,335*
Lundin Mining Corp. 540,000 5,185,044*
Mines Management, Inc. 870,930 2,969,678*
North American Tungsten Corp., Ltd. 1,232,000 1,611,997*
North Arrow Minerals, Inc. 176,500 37,306*
Paladin Resources Ltd. 50,000 297,368*
Red Hill Energy, Inc. 145,000 131,347*
Revett Minerals, Inc. 2,904,500 2,514,086*
Silvercorp Metals, Inc. 3,330,520 31,443,085
Stingray Copper, Inc. 300,000 217,402*
Suramina Resources, Inc. 1,178,000 1,541,342*
Taseko Mines Ltd. 366,000 1,904,504*
Toledo Mining Corp., plc 292,900 1,556,712*
Tyler Resources, Inc. 4,474,500 4,413,477*
Uranium North Resources Corp. 494,201 248,705*
Wallbridge Mining Co., Ltd. 1,423,500 515,787*
Western Copper Corp. 58,900 67,582*
Western Prospector Group Ltd. 808,600 813,849*
--------------
73,280,732
OIL & GAS EXPLORATION & PRODUCTION - JUNIOR 0.05%
- ------------------------------------------------------------------------------------------
Big Sky Energy Corp. 2,490,750 186,806*
Big Sky Energy Corp. (RS) 500,000 35,730*@
Petro Rubiales Energy Corp. 199,326 290,899*
--------------
513,435
OIL & GAS EXTRACTION 0.30%
- ------------------------------------------------------------------------------------------
Pacific Stratus Energy Ltd. 247,000 3,047,879*
PLATINUM GROUP METALS 7.90%
- ------------------------------------------------------------------------------------------
Anooraq Resources Corp. 3,227,600 14,880,513*
Aquarius Platinum Ltd. 330,135 3,761,995
Beartooth Platinum Corp. 4,953,500 498,566*
Eastern Platinum Ltd. 18,235,225 52,674,849*
Osmium Holdings S.A. (RS) 891 89,100*@
Platinum Group Metals Ltd. 993,400 3,959,402*
Ridge Mining plc 1,603,000 3,567,111*
--------------
79,431,536
SENIOR GOLD PRODUCERS 9.05%
- ------------------------------------------------------------------------------------------
AngloGold Ashanti Ltd., Sponsored ADR 30,000 1,284,300
Barrick Gold Corp. 94,574 3,976,837
Freeport-McMoRan Copper & Gold, Inc. 55,000 5,634,200
See notes to portfolios of investments and notes to financial statements.
84
WORLD PRECIOUS MINERALS FUND
PORTFOLIO OF INVESTMENTS (UNAUDITED) December 31, 2007
COMMON STOCKS SHARES VALUE
SENIOR GOLD PRODUCERS (CONT'D)
- -----------------------------------------------------------------------------------------
Gold Fields Ltd. 240,000 $ 3,463,102
Gold Fields Ltd., Sponsored ADR 1,071,980 15,222,116
Goldcorp, Inc. 2,101 71,287
Harmony Gold Mining Co., Ltd., Sponsored ADR 129,900 1,339,269*
Kinross Gold Corp. 1,237,517 22,793,579*
Lihir Gold Ltd. 1,133,000 3,582,545*
Lihir Gold Ltd., Sponsored ADR 62,000 1,933,780*
Newmont Mining Corp. 100,000 4,883,000
Yamana Gold, Inc. 2,070,363 26,793,023
--------------
90,977,038
WIRELESS EQUIPMENT 0.27%
- ------------------------------------------------------------------------------------------
Active Control Technology, Inc. 4,640,000 2,661,970*
- ------------------------------------------------------------------------------------------
TOTAL COMMON STOCKS 622,050,182
- ------------------------------------------------------------------------------------------
(cost $449,080,519)
EXCHANGE-TRADED FUNDS 4.59%
iShares Silver Trust 134,243 19,729,694*
Market Vectors Gold Miners ETF 57,800 2,650,130
Sprott Molybdenum Participation Corp. 2,000 9,099*
streetTRACKS Gold Trust 287,510 23,708,074*
- ------------------------------------------------------------------------------------------
TOTAL EXCHANGE-TRADED FUNDS 46,096,997
- ------------------------------------------------------------------------------------------
(cost $43,486,290)
WARRANTS 21.60%
DIAMOND MINING & EXPLORATION 0.00%
- ------------------------------------------------------------------------------------------
Rockwell Diamonds, Inc., Warrants (November 2008) 2,575,000 0*@
SouthernEra Diamonds, Inc., Warrants
(November 2008) 100,000 1,006*@
--------------
1,006
GOLD/MINERAL EXPLORATION & DEVELOPMENT 1.20%
- ------------------------------------------------------------------------------------------
Carnavale Resources Ltd., Warrants (June 2009) 2,348,857 1,357,860*
Chesapeake Gold Corp., Warrants (February 2012) 290,574 1,216,635*
European Minerals Corp., Warrants (December 2008) 2,563,700 1,806,241*
European Minerals Corp., Warrants (April 2010) 2,291,000 1,844,698*
European Minerals Corp., Warrants (March 2011) 3,774,000 2,848,876*
Grandview Gold, Inc., Warrants (July 2009) 350,000 0*@
Great Basin Gold Ltd., Warrants (April 2009) 519,000 302,974*
See notes to portfolios of investments and notes to financial statements.
85
WORLD PRECIOUS MINERALS FUND
PORTFOLIO OF INVESTMENTS (UNAUDITED) December 31, 2007
WARRANTS SHARES VALUE
GOLD/MINERAL EXPLORATION & DEVELOPMENT (CONT'D)
- ------------------------------------------------------------------------------------------
Hainan Mining Corp., Warrants (May 2009) (RS) 313,700 $ 0*@
Hainan Mining Corp., Warrants (August 2011) (RS) 1,705,000 135,503*@
Metallic Ventures Gold, Inc., Warrants
(March 2009) 691,500 104,398*
Mindoro Resources Ltd., Warrants (January 2009) 750,000 0*@
Mindoro Resources Ltd., 144A, Warrants (May 2009) 750,000 0*@
New Gold, Inc., Warrants (June 2017) 1,258,700 1,684,939*
NovaGold Resources, Inc., Warrants (October 2008) 183,900 527,517*
Platte River Gold U.S., Inc., Warrants
(November 2008) (RS) 87,500 0*@
Platte River Gold U.S., Inc., Warrants
(March 2009) (RS) 195,000 195,000*@
San Anton Resource Corp., Warrants (December 2008) 520,000 0*@
Staccato Gold Resources Ltd., 144A, Warrants
(August 2009) 3,000,000 0*@
Terrane Metals Corp., Warrants (July 2008) 200,000 0*@
Terrane Metals Corp., Warrants (November 2008) 475,500 0*@
Terrane Metals Corp., Warrants (June 2012) 150,000 27,930*
US Gold Corp., Warrants (February 2011) 13,000 15,309*
--------------
12,067,880
GOLD/MINERAL ROYALTY COMPANIES 0.00%
- ------------------------------------------------------------------------------------------
Aberdeen International, Inc., Warrants
(January 2008) 1,000,000 0*@
INTERMEDIATE & JUNIOR GOLD PRODUCERS 0.85%
- ------------------------------------------------------------------------------------------
Avnel Gold Mining Ltd., Warrants (June 2010) 14,000 2,466*
Central Sun Mining, Inc., Warrants (November 2008) 1,471,800 22,220*
IAMGOLD Corp., Warrants (August 2008) 3,513,765 2,475,603*
Metallica Resources, Inc., Warrants
(December 2008) 2,129,400 5,122,305*
Nevsun Resources Ltd., Warrants (June 2008) 314,680 106,894*
Nevsun Resources Ltd., Warrants (October 2008) 39,600 17,936*
Peak Gold Ltd., Warrants (April 2012) 4,126,600 789,144*
Rusoro Mining Ltd., Warrants (November 2011) 600,000 0*@
--------------
8,536,568
METAL & MINERAL MINING & EXPLORATION 7.90%
- ------------------------------------------------------------------------------------------
Baja Mining Corp., Warrants (April 2008) 527,750 302,770*@
Baja Mining Corp., Warrants (April 2009) 1,185,390 1,073,777*
Breakwater Resources Ltd., Warrants (January 2009) 702,150 607,769*
Calibre Mining Corp., Warrants (January 2008) 200,000 0*@
Coalcorp Mining, Inc., Warrants (February 2011) 63,714 14,429*
Dension Mines Corp., Warrants (November 2009) 100 1,220*
Denison Mines Corp., Warrants (March 2011) 111,045 983,540*
Minco Silver Corp., Warrants (May 2008) 11,000 4,871*
Mines Management, Inc., Warrants (April 2012) 513,700 847,605*
Silver Wheaton Corp., Warrants (August 2009) 12,067,640 32,551,231*
Silver Wheaton Corp., Warrants (December 2010) 2,797,120 25,055,979*
Silver Wheaton Corp., Warrants (November 2009) 6,578,900 16,156,727*
See notes to portfolios of investments and notes to financial statements.
86
WORLD PRECIOUS MINERALS FUND
PORTFOLIO OF INVESTMENTS (UNAUDITED) December 31, 2007
WARRANTS SHARES VALUE
METAL & MINERAL MINING & EXPLORATION (CONT'D)
- ------------------------------------------------------------------------------------------
Thompson Creek Metals Co., Inc., Warrants
(October 2011) 165,600 $ 1,758,422*
--------------
79,358,340
OIL & GAS EXPLORATION & PRODUCTION - JUNIOR 0.00%
- ------------------------------------------------------------------------------------------
Bankers Petroleum Ltd., Warrants (November 2009) 13,000 3,925*
PLATINUM GROUP METALS 0.26%
- ------------------------------------------------------------------------------------------
Eastern Platinum Ltd., Warrants (April 2008) 1,477,000 1,635,247*
Eastern Platinum Ltd., Warrants (March 2009) 925,500 968,769*
--------------
2,604,016
SENIOR GOLD PRODUCERS 11.39%
- ------------------------------------------------------------------------------------------
Goldcorp, Inc., Warrants (June 2011) 4,273,848 43,025,007*
Kinross Gold Corp., Warrants (September 2011) 1,239,400 3,505,323*
Yamana Gold, Inc., Warrants (May 2008) 6,273,848 32,330,634*
Yamana Gold, Inc., Warrants (November 2008) 4,820,500 25,860,062*
Yamana Gold, Inc., Warrants (February 2010) 3,915,963 9,774,635*
--------------
114,495,661
- ------------------------------------------------------------------------------------------
TOTAL WARRANTS 217,067,396
- ------------------------------------------------------------------------------------------
(cost $149,769,270)
SPECIAL WARRANTS 0.79%
GOLD/MINERAL EXPLORATION & DEVELOPMENT 0.29%
- ------------------------------------------------------------------------------------------
Ivanhoe Nickel and Platinum Ltd., Special Warrants
(RS) 112,500 639,067*@
Osisko Exploration Ltd., 144A, Special Warrants
(RS) 400,000 2,256,555@
Western Exploration & Development Ltd., 144A,
Special Warrants (RS) 600,000 0*@
--------------
2,895,622
INTERMEDIATE & JUNIOR GOLD PRODUCERS 0.50%
- ------------------------------------------------------------------------------------------
Peak Gold Ltd., Special Warrants (RS) 8,300,000 5,012,330*@
- ------------------------------------------------------------------------------------------
TOTAL SPECIAL WARRANTS 7,907,952
- ------------------------------------------------------------------------------------------
(cost $10,067,764)
See notes to portfolios of investments and notes to financial statements.
87
WORLD PRECIOUS MINERALS FUND
PORTFOLIO OF INVESTMENTS (UNAUDITED) December 31, 2007
UNITS 0.98% SHARES VALUE
INTERMEDIATE & JUNIOR GOLD PRODUCERS 0.98%
- ------------------------------------------------------------------------------------------
Rusoro Mining Ltd., Units (RS) 6,105,000 $ 9,831,413*@
(cost $14,947,970)
PURCHASED OPTIONS 2.32% CONTRACTS
INTERMEDIATE & JUNIOR GOLD PRODUCERS 0.63%
- ------------------------------------------------------------------------------------------
Agnico-Eagle Mines Ltd. Strike Price 35, Call,
Expiration Jan. 2009 (premium $5,255,104) 2,635 6,113,200
Crystallex International Corp., Strike Price 2.50,
Call, Expiration Jan. 2008 (premium $449,378) 2,977 44,655
Crystallex International Corp., Strike Price 2.50,
Call, Expiration Jan. 2009 (premium $410,278) 2,314 219,830
--------------
6,377,685
METAL & MINERAL MINING & EXPLORATION 0.00%
- ------------------------------------------------------------------------------------------
Hecla Mining Co., Strike Price 10, Call,
Expiration Jan. 2009 (premium $3,900) 25 6,000
SENIOR GOLD PRODUCERS 1.69%
- ------------------------------------------------------------------------------------------
Barrick Gold Corp., Strike Price 40, Call,
Expiration Jan.2009 (premium $1,946,841) 3,463 2,770,400
Barrick Gold Crop., Strike Price 42.50, Call,
Expiration Jul. 2008 (premium $1,638,406) 3,025 1,573,000
Goldcorp, Inc., Strike Price 30, Call, Expiration
Jan. 2009 (premium $2,924,687) 4,539 3,858,150
Goldcorp, Inc., Strike Price 35, Call, Expiration
Jan. 2009 (premium $930,656) 2,222 1,355,420
Harmony Gold Mining Co., Ltd., Strike Price 17.50,
Call, Expiration Jan. 2008 (premium $191,287) 1,252 6,260
Newmont Mining Corp., Strike Price 40, Call,
Expiration Jan. 2009 (premium $1,056,550) 850 1,028,500
Philadelphia Stock Exchange Gold & Silver Index,
Strike Price 140, Put, Expiration Jun. 2008
(premium $1,011,365) 1,196 663,780
Philadelphia Stock Exchange Gold & Silvers Index,
Strike Price 170, Put, Expiration Mar. 2008
(premium $5,776,371) 5,136 5,700,960
--------------
16,956,470
- ------------------------------------------------------------------------------------------
TOTAL PURCHASED OPTIONS 23,340,155
- ------------------------------------------------------------------------------------------
(cost $21,594,823)
See notes to portfolios of investments and notes to financial statements.
88
WORLD PRECIOUS MINERALS FUND
PORTFOLIO OF INVESTMENTS (UNAUDITED) December 31, 2007
RIGHTS 0.15% SHARES VALUE
GOLD/MINERAL EXPLORATION & DEVELOPMENT 0.16%
- -------------------------------------------------------------------------------------------
Chesapeake Gold Corp., Series 1, Class A, Rights (RS) 57,279 $ 1,564,644*@
(cost $851,017)
PRINCIPAL
CONVERTIBLE DEBENTURES 0.25% AMOUNT VALUE
GOLD/MINERAL EXPLORATION & DEVELOPMENT 0.25%
- -------------------------------------------------------------------------------------------
New Gold, Inc., 10.00%, maturity 6/28/17 $ 3,000,000 2,491,067*@
(cost $2,802,691)
- -------------------------------------------------------------------------------------------
TOTAL SECURITIES 930,349,806
- -------------------------------------------------------------------------------------------
(cost $692,600,344)
REPURCHASE AGREEMENTS 10.02%
Joint Tri-Party Repurchase Agreement, Bear
Stearns, 12/31/07, 1.25%, due 01/02/08,
repurchase price $37,325,344 collateralized by
U.S. Treasury securities held in a joint tri-
party account (cost $37,322,752) 37,322,752 37,322,752
Joint Tri-Party Repurchase Agreement, Merrill
Lynch, 12/31/07, 1.00%, due 01/02/08, repurchase
price $63,444,612, collateralized by U.S.
Treasury securities held in a joint tri-party
account (cost $63,441,087) 63,441,087 63,441,087
- -------------------------------------------------------------------------------------------
TOTAL REPURCHASE AGREEMENTS 100,763,839
- -------------------------------------------------------------------------------------------
(cost $100,763,839)
- -------------------------------------------------------------------------------------------
TOTAL INVESTMENTS 102.59% 1,031,113,645
- -------------------------------------------------------------------------------------------
(cost $793,364,183)
Other assets and liabilities, net (2.59)% (25,994,197)
--------------
NET ASSETS 100% $1,005,119,448
--------------
See notes to portfolios of investments and notes to financial statements.
89
GOLD AND PRECIOUS METALS FUND
PORTFOLIO OF INVESTMENTS (UNAUDITED) December 31, 2007
COMMON STOCKS 52.58% SHARES VALUE
DIAMOND MINING & EXPLORATION 0.37%
- ----------------------------------------------------------------------------------
Diamond Fields International Ltd. 108,000 $ 10,870*
Harry Winston Diamond Corp. 22,000 718,535
-----------
729,405
FINANCIAL SERVICES 0.63%
- ----------------------------------------------------------------------------------
GMP Capital Trust 50,200 1,247,989
GOLD MINING 43.20%
- ----------------------------------------------------------------------------------
Agnico-Eagle Mines Ltd. 115,558 6,321,267
AngloGold Ashanti Ltd., Sponsored ADR 38,000 1,626,780
Barrick Gold Corp. 27,429 1,153,389
Centerra Gold, Inc. 113,700 1,438,487*
Century Mining Corp. 509,512 143,590*
Crystallex International Corp. 79,565 182,587*
DRDGOLD Ltd., Sponsored ADR 10,000 70,950*
Freeport-McMoRan Copper & Gold, Inc. 25,000 2,561,000
GBS Gold International, Inc. 17,500 22,898*
Gold Fields Ltd. 95,000 1,370,811
Gold Fields Ltd., Sponsored ADR 427,620 6,072,204
Goldcorp, Inc. 5,523 187,395
Harmony Gold Mining Co., Ltd., Sponsored ADR 217,600 2,243,456*
Hecla Mining Co. 90,000 841,500*
High River Gold Mines Ltd. 991,500 2,834,140*
IAMGOLD Corp. 185,000 1,506,366
Ivanhoe Mines Ltd. 133,100 1,446,812*
Jaguar Mining, Inc. 399,159 4,857,161*
Kingsgate Consolidated Ltd. 199,625 813,060*
Kinross Gold Corp. 768,553 14,155,819*
Lihir Gold Ltd. 667,000 2,109,053*
Lihir Gold Ltd., Sponsored ADR 11,000 343,090*
Newcrest Mining Ltd. 160,400 4,650,363
Newmont Mining Corp. 65,000 3,173,950
OceanaGold Corp. 15,000 39,857*
Peak Gold Ltd. 1,305,142 788,169*
Randgold Resources Ltd., ADR 241,800 8,978,034
Red Back Mining, Inc. 222,400 1,587,053*
Red Back Mining, Inc., 144A 245,000 1,748,327*
Rusoro Mining Ltd. 100,000 161,039*
Sino Gold Ltd. 289,000 1,759,289*
Troy Resources NL 411,300 1,145,619
Yamana Gold, Inc. 608,161 7,874,254
Zhaojin Mining Industry Co., Ltd., H shares 88,400 369,037
Zijin Mining Group Co., Ltd., H shares 228,200 354,134
-----------
84,930,940
See notes to portfolios of investments and notes to financial statements.
90
GOLD AND PRECIOUS METALS FUND
PORTFOLIO OF INVESTMENTS (UNAUDITED) December 31, 2007
COMMON STOCKS SHARES VALUE
GOLD ROYALTY COMPANIES 2.94%
- ----------------------------------------------------------------------------------
Aberdeen International, Inc. 52,250 $ 28,924*
Franco-Nevada Corp. 105,000 1,601,077*
Royal Gold, Inc. 136,100 4,153,772
-----------
5,783,773
METAL & MINERAL MINING 1.40%
- ----------------------------------------------------------------------------------
Independence Group NL 106,050 828,572
Lundin Mining Corp. 46,290 444,474*
Rio Tinto plc, Sponsored ADR 3,500 1,469,650
-----------
2,742,696
PLATINUM GROUP METALS 2.60%
- ----------------------------------------------------------------------------------
Eastern Platinum Ltd. 1,766,550 5,102,912*
SILVER MINING 1.44%
- ----------------------------------------------------------------------------------
Coeur d'Alene Mines Corp. 515,850 2,548,299*
Silvercorp Metals, Inc. 30,000 283,227
-----------
2,831,526
- ----------------------------------------------------------------------------------
TOTAL COMMON STOCKS 103,369,241
- ----------------------------------------------------------------------------------
(cost $84,391,547)
EXCHANGE-TRADED FUNDS 7.70%
iShares Silver Trust 26,350 3,872,660*
Market Vectors Gold Miners ETF 12,224 560,470
streetTRACKS Gold Trust 129,840 10,706,606*
- ----------------------------------------------------------------------------------
TOTAL EXCHANGE-TRADED FUNDS 15,139,736
- ----------------------------------------------------------------------------------
(cost $13,181,806)
WARRANTS 18.71%
GOLD MINING 14.50%
- ----------------------------------------------------------------------------------
Central Sun Mining, Warrants (November 2008) 88,500 1,336*
Goldcorp, Inc., Warrants (June 2011) 1,066,254 10,731,760*
IAMGOLD Corp., Warrants (August 2008) 707,355 498,363*
Kinross Gold Corp., Warrants (September 2011) 495,300 1,400,828*
Nevsun Resources Ltd., Warrants (June 2008) 64,320 21,849*
Nevsun Resources Ltd., Warrants (October 2008) 4,600 2,084*
Peak Gold Ltd., Warrants (April 2012) 1,042,400 199,342*
Yamana Gold, Inc., Warrants (May 2008) 1,609,741 8,295,379*
See notes to portfolios of investments and notes to financial statements.
91
GOLD AND PRECIOUS METALS FUND
PORTFOLIO OF INVESTMENTS (UNAUDITED) December 31, 2007
WARRANTS SHARES VALUE
GOLD MINING (CONT'D)
- ----------------------------------------------------------------------------------
Yamana Gold, Inc., Warrants (November 2008) 1,065,388 $ 5,715,382*
Yamana Gold, Inc., Warrants (February 2010) 652,731 1,629,282*
-----------
28,495,605
PLATINUM GROUP METALS 0.01%
- ----------------------------------------------------------------------------------
Eastern Platinum Ltd., Warrants (April 2008) 23,000 25,464*
SILVER MINING 4.20%
- ----------------------------------------------------------------------------------
Silver Wheaton Corp., Warrants (August 2009) 1,524,190 4,111,347*
Silver Wheaton Corp., Warrants (November 2009) 664,780 1,632,594*
Silver Wheaton Corp., Warrants (December 2010) 280,340 2,511,223*
-----------
8,255,164
- ----------------------------------------------------------------------------------
TOTAL WARRANTS 36,776,233
- ----------------------------------------------------------------------------------
(cost $25,891,580)
SPECIAL WARRANTS 0.46%
GOLD MINING 0.46%
- ----------------------------------------------------------------------------------
Peak Gold Ltd., Special Warrants (RS)
(cost $1,136,880) 1,500,000 905,843*@
UNITS 0.76%
GOLD MINING 0.76%
- ----------------------------------------------------------------------------------
Rusoro Mining Ltd., Units (RS)
(cost $2,277,086) 930,000 1,497,660*@
PURCHASED OPTIONS 3.20% CONTRACTS
GOLD MINING 3.20%
- ----------------------------------------------------------------------------------
Agnico-Eagle Mines Ltd. Strike Price 35, Call,
Expiration Jan. 2009 (premium $875,526) 439 1,018,480
AngloGold Ashanti Ltd., Strike Price 50, Call,
Expiration Jan. 2010 (premium $166,140) 180 132,300
Barrick Gold Corp., Strike Price 40, Call,
Expiration Jan. 2009 (premium $1,187,917) 2,137 1,709,600
Barrick Gold Crop., Strike Price 42.50, Call,
Expiration Jul. 2008 (premium $392,841) 725 377,000
Crystallex International Corp., Strike Price
2.50, Call, Expiration Jan. 2008
(premium $96,464) 644 9,660
See notes to portfolios of investments and notes to financial statements.
92
GOLD AND PRECIOUS METALS FUND
PORTFOLIO OF INVESTMENTS (UNAUDITED) December 31, 2007
PURCHASED OPTIONS CONTRACTS VALUE
GOLD MINING (CONT'D)
- ----------------------------------------------------------------------------------
Crystallex International Corp., Strike Price
2.50, Call, Expiration Jan. 2009
(premium $7,770) 45 $ 4,275
Goldcorp, Inc., Strike Price 30, Call, Expiration
Jan. 2009 (premium $1,035,065) 1,621 1,377,850
Goldcorp, Inc., Strike Price 35, Call, Expiration
Jan. 2009 (premium $346,309) 833 508,130
Harmony Gold Mining Co., Ltd., Strike Price
17.50, Call, Expiration Jan. 2008
(premium $501,823) 2,228 11,140
Hecla Mining Co., Strike Price 10, Call,
Expiration Jan. 2009 (premium $185,240) 1,420 340,800
Newmont Mining Corp., Strike Price 40, Call,
Expiration Jan. 2009 (premium $186,450) 150 181,500
Philadelphia Stock Exchange Gold & Silver Index,
Strike Price 140, Put, Expiration Jun. 2008
(premium $189,281) 224 124,320
Philadelphia Stock Exchange Gold & Silvers Index,
Strike Price 170, Put, Expiration Mar. 2008
(premium $510,691) 453 502,830
- ----------------------------------------------------------------------------------
TOTAL PURCHASED OPTIONS 6,297,885
- ----------------------------------------------------------------------------------
(cost $5,681,517)
- ----------------------------------------------------------------------------------
TOTAL SECURITIES 163,986,598
- ----------------------------------------------------------------------------------
(cost $132,560,416)
PRINCIPAL
REPURCHASE AGREEMENTS 20.26% AMOUNT
Joint Tri-Party Repurchase Agreement, Bear
Stearns, 12/31/07, 1.25%, due 01/02/08,
repurchase price $14,752,577, collateralized by
U.S. Treasury securities held in a joint tri-
party account (cost $14,751,553) $14,751,553 14,751,553
Joint Tri-Party Repurchase Agreement, Merrill
Lynch, 12/31/07, 1.00%, due 01/02/08,
repurchase price $25,074,641, collateralized by
U.S. Treasury securities held in a joint tri-
party account (cost $25,074,641) 25,074,641 25,074,641
- ----------------------------------------------------------------------------------
TOTAL REPURCHASE AGREEMENTS 39,826,194
- ----------------------------------------------------------------------------------
(cost $39,826,194)
- ----------------------------------------------------------------------------------
TOTAL INVESTMENTS 103.67% 203,812,792
- ----------------------------------------------------------------------------------
(cost $172,386,610)
Other assets and liabilities, net (3.67)% (7,220,233)
-----------
NET ASSETS 100% $196,592,559
------------
See notes to portfolios of investments and notes to financial statements.
93
NOTES TO PORTFOLIOS OF INVESTMENTS (UNAUDITED) December 31, 2007
LEGEND
* Non-income producing security VR Variable Rate
+ Affiliated company (see following) GO General Obligation Bond
ADR American Depositary Receipt RS Restricted Security (see following)
GDR Global Depositary Receipt ZCB Zero Coupon Bond
@ Security was fair valued at December 31, 2007, by the Adviser in accordance with
valuation procedures approved by the Board of Trustees. Fair valued securities,
which were primarily composed of restricted securities, as a percentage of net
assets at December 31, 2007, were 0.14% of China Region Opportunity, 3.03% of
Global Resources, 3.08% of World Precious Minerals and 1.22% of Gold and Precious
Metals. See also Note 1B in the notes to financial statements for further
discussion of fair valued securities.
GENERAL
The yields reflect the effective yield from the date of purchase.
Variable Rate Notes have periodic reset features, which effectively
shorten the maturity dates and reset the interest rates as tied to
various interest-bearing instruments. Rates shown are current rates
at December 31, 2007.
Securities with a 144A designation are exempt from registration
under Rule 144A of the Securities Act of 1933.
JOINT TRI-PARTY REPURCHASE AGREEMENTS
The terms of the joint tri-party repurchase agreements and the
securities held as collateral at December 31, 2007 were:
Bear Stearns repurchase agreement, 12/31/07, 1.25%, due 01/02/08:
Total principal amount: $90,000,000; Total repurchase price:
$90,006,250
Collateral:
$80,365,000 U.S. Treasury Bond, 2.00%, 07/15/14
(total collateral market value, including accrued interest, of
$92,494,024)
Merrill Lynch repurchase agreement, 12/31/07, 1.00%, due 01/02/08:
Total principal amount: $152,981,689; Total repurchase price:
$152,990,188
Collateral:
$143,945,000 U.S. Treasury Note, 5.125%, 05/15/16
(total collateral market value, including accrued interest, of
$156,044,547)
UBS Financial Services, Inc. repurchase agreement, 12/31/07, 1.30%,
due 01/02/08:
Total principal amount: $21,000,000; Total repurchase price:
$21,001,517
Collateral:
$6,500,000 U.S. Treasury Note, 4.50%, 11/30/11
$13,759,000 U.S. Treasury Note, 4.625%, 02/29/12
(total collateral market value, including accrued interest, of
$21,421,085)
Other mutual funds managed by U.S. Global Investors, Inc.
participate in the joint tri-party repurchase agreements. Each owns
an undivided interest in the accounts.
94
NOTES TO PORTFOLIOS OF INVESTMENTS (UNAUDITED) December 31, 2007
AFFILIATED COMPANIES - INDICATED IN PORTFOLIO OF INVESTMENTS AS "+"
The Investment Company Act of 1940 defines affiliates as companies
in which the Fund owns at least 5% of the outstanding voting
securities. The following is a summary of transactions with each
affiliated company during the period ended December 31, 2007.
SHARES OF AFFILIATED COMPANIES
JUNE 30, 2007 ADDITIONS REDUCTIONS DECEMBER 31, 2007
GLOBAL RESOURCES FUND
- ------------------------------------------------------------------------------------------------
Bounty Industries Ltd. 22,000,000 -- -- 22,000,000
Exile Resources, Inc. 2,100,000 -- -- 2,100,000
Investika Ltd. 706,500 7,600 (13,000) 701,100(a)
Ivory Energy, Inc. 4,753,166 50,000 (200,000) 4,603,166
Red Dragon Resources Corp. 3,895,000 -- -- 3,895,000
Revett Minerals, Inc. 4,705,200 342,800 -- 5,048,000
Royalite Petroleum Co., Inc. 2,246,333 20,000 -- 2,266,333
At December 31, 2007, the value of investments in affiliated
companies was $11,238,377 representing 0.66% of net assets, and the
total cost was $15,327,492. Net realized gains on transactions were
$61,752, and there was no income earned for the period.
SHARES OF AFFILIATED COMPANIES
JUNE 30, 2007 ADDITIONS REDUCTIONS DECEMBER 31, 2007
WORLD PRECIOUS MINERALS FUND
- -------------------------------------------------------------------------------------------------
Aberdeen International, Inc. 2,260,500 33,000 -- 2,293,500(a)
Atikwa Minerals Corp. 2,784,333 228,000 -- 3,012,333
Carnavale Resources Ltd. 1,058,000 2,290,857 -- 3,348,857
Chesapeake Gold Corp. 1,027,749 64,800 -- 1,092,549(a)
Diamonds North Resources Ltd. 2,851,400 17,000 (18,000) 2,850,400(a)
Grandview Gold, Inc. 1,388,000 55,000 -- 1,443,000(a)
Moss Lake Gold Mines Ltd. 2,998,500 123,500 -- 3,122,000
Reunion Gold Corp. 1,977,300 133,700 -- 2,111,000
Romarco Minerals, Inc. 7,896,853 6,284,353 (10,000) 14,171,206
VG Gold Corp. (formerly Vedron
Gold, Inc.) 5,325,010 408,500 -- 5,733,510
At December 31, 2007, the value of investments in affiliated
companies was $12,799,877 representing 1.27% of net assets, and the
total cost was $9,400,454. Net realized gains on transactions were
$9,641, and there was no income earned for the period.
(a) At December 31, 2007, the company is no longer defined as an
affiliate, although it was an affiliated company during the
period.
95
NOTES TO PORTFOLIOS OF INVESTMENTS (UNAUDITED) December 31, 2007
RESTRICTED SECURITIES - INDICATED IN PORTFOLIO OF INVESTMENTS AS
"RS"
The following securities are subject to legal restrictions on their
resale. The issuer bears the cost of registration, if any, involved
in the disposition of these securities.
ACQUISITION COST PER
SECURITY DATE SHARE
CHINA REGION OPPORTUNITY FUND
- -------------------------------------------------------------
Big Sky Energy Corp. 03/01/05 $0.50
At December 31, 2007, the total cost of restricted securities was
$50,000, and the total value was $7,146, representing 0.01% of net
assets.
ACQUISITION COST PER
DATE SHARE
GLOBAL RESOURCES FUND
- ------------------------------------------------------------------------------------------
BA Energy, Inc. 08/11/06 $8.48
Big Sky Energy Corp. 03/01/05-08/15/05 $0.64
Chesapeake Gold Corp., Series 1, Class A, Rights 02/26/07-07/17/07 $15.59
Foothills Resources, Inc. 09/07/06 $2.25
Foothills Resources, Inc., Warrants (September 2011) 09/07/06 $0.00
Govi HighPower Exploration, Special Warrants 10/04/07 $2.00
Ivanhoe Nickel and Platinum Ltd. (formerly African
Minerals), Special Warrants 07/09/03 $6.00
Legacy Energy LLC, 144A 02/27/06 $1.90
Osmium Holdings S.A. 10/22/96-01/29/98 $987.07
Peak Gold Ltd., Special Warrants 11/23/07 $0.76
Royalite Petroleum Co., Inc. 08/10/06-09/28/06 $0.79
Royalite Petroleum Co., Inc., Warrants
(January 2008) 08/10/06 $0.43
Royalite Petroleum Co., Inc., Warrants
(February 2008) 09/28/06 $0.67
Rusoro Mining Ltd., Units 10/22/07 $2.45
Trident Resources Corp., Series B, Preferred Stock 06/08/06 $62.50
Trident Resources Corp., Warrants (March 2013) 06/08/06 $0.00
At December 31, 2007, the total cost of restricted securities was
$37,094,112, and the total value was $29,347,062, representing 1.73%
of net assets.
96
NOTES TO PORTFOLIOS OF INVESTMENTS (UNAUDITED) December 31, 2007
ACQUISITION COST PER
SECURITY DATE SHARE
WORLD PRECIOUS MINERALS FUND
- ------------------------------------------------------------------------------------------
Big Sky Energy Corp. 03/01/05 $0.50
Carnavale Resources Ltd. 11/01/07 $1.28
Chesapeake Gold Corp., Series 1, Class A, Rights 02/26/07-07/17/07 $14.86
Hainan Mining Corp. 08/31/06-05/16/07 $0.85
Hainan Mining Corp., Warrants (May 2009) 05/16/07 $0.00
Hainan Mining Corp., Warrants (August 2011) 08/31/06 $0.00
Ivanhoe Nickel and Platinum Ltd. (formerly African
Minerals), Special Warrants 07/09/03 $6.00
Osisko Exploration Ltd., 144A, Special Warrants 11/07/07 $7.01
Osmium Holdings S.A. 10/22/96-01/29/98 $1,280.75
Peak Gold Ltd., Special Warrants 11/23/07 $0.76
Platte River Gold U.S., Inc. 03/01/04-11/17/06 $1.49
Platte River Gold U.S., Inc., Warrants
(November 2008) 11/17/06 $0.00
Platte River Gold U.S., Inc., Warrants (March 2009) 03/01/04 $0.00
Q2 Gold Resources, Inc. 06/18/07 $0.00
Rusoro Mining Ltd., Units 10/22/07 $2.45
Western Exploration & Development Ltd., 144A,
Special Warrants 08/14/97 $0.50
At December 31, 2007, the total cost of restricted securities was
$31,671,500, and the total value was $26,565,489, representing 2.64%
of net assets.
ACQUISITION COST PER
DATE SHARE
GOLD AND PRECIOUS METALS FUND
- ------------------------------------------------------------------------------------------
Peak Gold Ltd., Special Warrants 11/23/07 $0.76
Rusoro Mining Ltd., Units 10/22/07 $2.45
At December 31, 2007, the total cost of restricted securities was
$3,413,967, and the total value was $2,403,503, representing 1.22%
of net assets.
97
STATEMENTS OF ASSETS AND LIABILITIES (UNAUDITED)
U.S. TREASURY
SECURITIES
CASH FUND
Investments, at identified cost $115,043,767
============
ASSETS
- ---------------------------------------------------------------------------
Investments, at value:
Securities $ 64,940,923
Repurchase Agreements 50,102,844
Cash --
Receivables:
Interest 79,784
Capital shares sold 1,342,427
From adviser --
Other assets 7,195
- ---------------------------------------------------------------------------
TOTAL ASSETS 116,473,173
- ---------------------------------------------------------------------------
LIABILITIES
- ---------------------------------------------------------------------------
Payables:
Capital shares redeemed 2,068,251
Adviser and affiliates 72,023
Dividends and distributions --
Accounts payable and accrued expenses 36,494
Due to custodian --
- ---------------------------------------------------------------------------
TOTAL LIABILITIES 2,176,768
- ---------------------------------------------------------------------------
NET ASSETS $114,296,405
============
NET ASSETS CONSIST OF:
- ---------------------------------------------------------------------------
Paid-in capital $114,306,304
Accumulated undistributed net investment income 1,043
Accumulated net realized loss on investments and foreign
currencies (10,942)
Net unrealized appreciation of investments and other assets
and liabilities denominated in foreign currencies --
------------
Net assets applicable to capital shares outstanding $114,296,405
============
Capital shares outstanding, an unlimited number of no
par shares authorized 114,368,630
============
NET ASSET VALUE, PUBLIC OFFERING PRICE, REDEMPTION PRICE,
PER SHARE $ 1.00
============
See accompanying notes to financial statements.
98
December 31, 2007
U.S. GOVERNMENT
SECURITIES NEAR-TERM TAX FREE
SAVINGS FUND TAX FREE FUND FUND
Investments, at identified cost $465,745,504 $13,163,995 $16,741,199
============ =========== ===========
ASSETS
- --------------------------------------------------------------------------------------------------------------------------
Investments, at value:
Securities $465,745,504 $13,030,147 $16,256,983
Repurchase Agreements -- 313,166 972,834
Cash 619 1 --
Receivables:
Interest 1,076,249 144,079 216,387
Capital shares sold 1,430,866 581 681
From adviser -- 11,206 6,300
Other assets 30,517 247 261
- --------------------------------------------------------------------------------------------------------------------------
TOTAL ASSETS 468,283,755 13,499,427 17,453,446
- --------------------------------------------------------------------------------------------------------------------------
LIABILITIES
- --------------------------------------------------------------------------------------------------------------------------
Payables:
Capital shares redeemed 1,384,389 5,000 990
Adviser and affiliates 139,928 3,644 3,876
Dividends and distributions -- 8,405 10,937
Accounts payable and accrued expenses 63,141 29,801 23,132
Due to custodian -- -- 502
- --------------------------------------------------------------------------------------------------------------------------
TOTAL LIABILITIES 1,587,458 46,850 39,437
- --------------------------------------------------------------------------------------------------------------------------
NET ASSETS $466,696,297 $13,452,577 $17,414,009
============ =========== ===========
NET ASSETS CONSIST OF:
- --------------------------------------------------------------------------------------------------------------------------
Paid-in capital $466,293,579 $13,620,892 $17,639,977
Accumulated undistributed net investment income 409,406 17,659 31,767
Accumulated net realized loss on investments and foreign
currencies (6,688) (365,292) (746,353)
Net unrealized appreciation of investments and other assets
and liabilities denominated in foreign currencies -- 179,318 488,618
------------ ----------- -----------
Net assets applicable to capital shares outstanding $466,696,297 $13,452,577 $17,414,009
============ =========== ===========
Capital shares outstanding, an unlimited number of no
par shares authorized 466,922,580 6,231,460 1,437,031
============ =========== ===========
NET ASSET VALUE, PUBLIC OFFERING PRICE, REDEMPTION PRICE,
PER SHARE $ 1.00 $ 2.16 $ 12.12
============ =========== ===========
99
STATEMENTS OF ASSETS AND LIABILITIES (UNAUDITED)
ALL AMERICAN CHINA REGION
EQUITY FUND OPPORTUNITY FUND
Investments, at identified cost $23,783,731 $104,530,227
=========== ============
ASSETS
- ----------------------------------------------------------------------------------
Investments, at value:
Securities of unaffiliated issuers $26,786,734 $125,533,973
Securities of affiliated issuers -- --
Repurchase Agreements 2,143,808 4,208,102
Cash 900 --
Foreign currencies (Cost $0, $130,205, $0,
$0 and $0) -- 130,667
Receivables:
Investments sold 421,520 7,970,336
Dividends 14,908 --
Interest 65 128
Capital shares sold 139,286 678,271
Other assets 375 1,196
- ----------------------------------------------------------------------------------
TOTAL ASSETS 29,507,596 138,522,673
- ----------------------------------------------------------------------------------
LIABILITIES
- ----------------------------------------------------------------------------------
Payables:
Investments purchased 527,133 2,986,618
Capital shares redeemed 15,574 945,683
Adviser and affiliates 27,510 159,691
Accounts payable and accrued expenses 32,645 39,565
Due to custodian -- --
- ----------------------------------------------------------------------------------
TOTAL LIABILITIES 602,862 4,131,557
- ----------------------------------------------------------------------------------
NET ASSETS $28,904,734 $134,391,116
=========== ============
NET ASSETS CONSIST OF:
- ----------------------------------------------------------------------------------
Paid-in capital $23,669,975 $105,345,972
Accumulated undistributed net investment
income (distributions in excess of net
investment income) (89,669) (4,487,642)
Accumulated net realized gain (loss) on
investments and foreign currencies 177,617 8,311,386
Net unrealized appreciation of investments
and other assets and liabilities
denominated in foreign currencies 5,146,811 25,221,400
----------- ------------
Net assets applicable to capital shares
outstanding $28,904,734 $134,391,116
=========== ============
Capital shares outstanding, an
unlimited number of no par shares
authorized 1,005,150 10,547,697
=========== ============
NET ASSET VALUE, PUBLIC OFFERING PRICE,
REDEMPTION PRICE, PER SHARE $ 28.76 $ 12.74
=========== ============
See accompanying notes to financial statements.
100
December 31, 2007
GLOBAL RESOURCES WORLD PRECIOUS GOLD AND PRECIOUS
FUND MINERALS FUND METALS FUND
Investments, at identified cost $1,329,717,491 $ 793,364,183 $172,386,610
============== ============== ============
ASSETS
- ------------------------------------------------------------------------------------------------------
Investments, at value:
Securities of unaffiliated issuers $1,617,250,606 $ 917,549,929 $163,986,598
Securities of affiliated issuers 11,238,377 12,799,877 --
Repurchase Agreements 51,383,117 100,763,839 39,826,194
Cash 513,451 -- 28
Foreign currencies (Cost $0, $130,205, $0,
$0 and $0) -- -- --
Receivables:
Investments sold 20,926,955 2,764,874 395,862
Dividends 1,497,997 266,431 50,301
Interest 409,326 142,286 1,209
Capital shares sold 10,620,276 3,313,561 1,219,876
Other assets 31,012 16,494 3,691
- ------------------------------------------------------------------------------------------------------
TOTAL ASSETS 1,713,871,117 $1,037,617,291 205,483,759
- ------------------------------------------------------------------------------------------------------
LIABILITIES
- ------------------------------------------------------------------------------------------------------
Payables:
Investments purchased 10,648,531 26,977,217 8,011,616
Capital shares redeemed 5,326,073 3,846,729 618,650
Adviser and affiliates 956,563 607,011 139,489
Accounts payable and accrued expenses 285,836 325,921 121,445
Due to custodian 1,826,013 740,965 --
- ------------------------------------------------------------------------------------------------------
TOTAL LIABILITIES 19,043,016 32,497,843 8,891,200
- ------------------------------------------------------------------------------------------------------
NET ASSETS $1,694,828,101 $1,005,119,448 $196,592,559
============== ============== ============
NET ASSETS CONSIST OF:
- ------------------------------------------------------------------------------------------------------
Paid-in capital $1,376,482,782 $828,662,711 $171,916,389
Accumulated undistributed net investment
income (distributions in excess of net
investment income) (86,954,504) (117,120,810) 670,219
Accumulated net realized gain (loss) on
investments and foreign currencies 55,082,002 55,802,079 (7,421,096)
Net unrealized appreciation of investments
and other assets and liabilities
denominated in foreign currencies 350,217,821 237,775,468 31,427,047
-------------- -------------- ------------
Net assets applicable to capital shares
outstanding $1,694,828,101 $1,005,119,448 $196,592,559
============== ============== ============
Capital shares outstanding, an
unlimited number of no par shares
authorized 96,820,905 38,291,651 12,190,562
============== ============== ============
NET ASSET VALUE, PUBLIC OFFERING PRICE,
REDEMPTION PRICE, PER SHARE $ 17.50 $ 26.25 $ 16.13
============== ============== ============
101
STATEMENTS OF OPERATIONS (UNAUDITED)
U.S. TREASURY
SECURITIES
CASH FUND
NET INVESTMENT INCOME
INCOME:
- ---------------------------------------------------------------------------
Interest and other $2,741,984
EXPENSES:
- ---------------------------------------------------------------------------
Management fee 303,540
Transfer agent fees and expenses 221,913
Accounting service fees and expenses 13,068
Professional fees 27,807
Custodian fees 32,830
Shareholder reporting 29,949
Registration fees 14,671
Trustee fees and expenses 12,923
Miscellaneous 10,583
----------
Total expenses before reductions 667,284
Expenses offset - Note 1J (15)
Expenses reimbursed - Note 2 (63,626)
----------
NET EXPENSES 603,643
- ---------------------------------------------------------------------------
NET INVESTMENT INCOME 2,138,341
- ---------------------------------------------------------------------------
NET REALIZED AND UNREALIZED GAIN ON INVESTMENTS
Realized gain from securities --
Net change in unrealized appreciation of investments --
- ---------------------------------------------------------------------------
NET REALIZED AND UNREALIZED GAIN ON INVESTMENTS --
- ---------------------------------------------------------------------------
NET INCREASE IN NET ASSETS
RESULTING FROM OPERATIONS $2,138,341
==========
See accompanying notes to financial statements.
102
For the Six Months Ended December 31, 2007
U.S. GOVERNMENT
SECURITIES NEAR-TERM TAX FREE
SAVINGS FUND TAX FREE FUND FUND
NET INVESTMENT INCOME
INCOME:
- -----------------------------------------------------------------------------------------------------------
Interest and other $11,519,755 $269,378 $385,187
EXPENSES:
- -----------------------------------------------------------------------------------------------------------
Management fee 1,048,994 34,031 61,957
Transfer agent fees and expenses 281,933 17,876 19,894
Accounting service fees and expenses 40,134 19,060 18,245
Professional fees 42,713 26,612 25,683
Custodian fees 36,381 6,960 6,563
Shareholder reporting 45,691 1,473 1,980
Registration fees 18,144 7,463 7,504
Trustee fees and expenses 12,923 12,923 12,923
Miscellaneous 20,623 3,248 3,979
----------- -------- --------
Total expenses before reductions 1,547,536 129,646 158,728
Expenses offset - Note 1J -- (269) (21)
Expenses reimbursed - Note 2 (483,782) (98,896) (101,149)
----------- -------- --------
NET EXPENSES 1,063,754 30,481 57,558
- -----------------------------------------------------------------------------------------------------------
NET INVESTMENT INCOME 10,456,001 238,897 327,629
- -----------------------------------------------------------------------------------------------------------
NET REALIZED AND UNREALIZED GAIN ON INVESTMENTS
Realized gain from securities 2,933 12 2,373
Net change in unrealized appreciation of investments -- 216,858 177,340
- -----------------------------------------------------------------------------------------------------------
NET REALIZED AND UNREALIZED GAIN ON INVESTMENTS 2,933 216,870 179,713
- -----------------------------------------------------------------------------------------------------------
NET INCREASE IN NET ASSETS
RESULTING FROM OPERATIONS $10,458,934 $455,767 $507,342
=========== ======== ========
103
STATEMENTS OF OPERATIONS (UNAUDITED)
ALL AMERICAN CHINA REGION
EQUITY FUND OPPORTUNITY FUND
NET INVESTMENT INCOME
INCOME:
- ----------------------------------------------------------------------------------------------
Dividends from unaffiliated issuers $ 85,007 $ 902,069
Foreign taxes withheld on dividends (471) (63,108)
---------- -----------
Net dividends 84,536 838,961
Interest and other 44,816 180,035
---------- -----------
TOTAL INCOME 129,352 1,018,996
EXPENSES:
- ----------------------------------------------------------------------------------------------
Management fee 94,359 781,672
Transfer agent fees and expenses 55,033 128,390
Accounting service fees and expenses 15,104 56,047
Professional fees 27,903 33,736
Custodian fees 14,650 92,840
Shareholder reporting 10,241 20,184
Registration fees 7,690 9,173
Trustee fees and expenses 12,923 12,923
Miscellaneous 10,382 15,333
---------- -----------
Total expenses before reductions 248,285 1,150,298
Expenses offset - Note 1J (253) (319)
Expenses reimbursed - Note 2 (29,011) --
---------- -----------
NET EXPENSES 219,021 1,149,979
- ----------------------------------------------------------------------------------------------
NET INVESTMENT INCOME (LOSS) (89,669) (130,983)
- ----------------------------------------------------------------------------------------------
NET REALIZED AND UNREALIZED
GAIN ON INVESTMENTS
Realized gain (loss) from:
Securities from unaffiliated issuers 1,238,903 21,858,187
Securities from affiliated issuers -- --
Written options -- --
Foreign currency transactions (373) (53,887)
---------- -----------
NET REALIZED GAIN 1,238,530 21,804,300
---------- -----------
Net change in unrealized appreciation (depreciation) of:
Investments 1,614,892 2,297,631
Written options -- --
Other assets and liabilities
denominated in foreign currencies -- 8,416
---------- -----------
NET UNREALIZED APPRECIATION 1,614,892 2,306,047
- ----------------------------------------------------------------------------------------------
NET REALIZED AND UNREALIZED GAIN
ON INVESTMENTS 2,853,422 24,110,347
- ----------------------------------------------------------------------------------------------
NET INCREASE IN NET ASSETS
RESULTING FROM OPERATIONS $2,763,753 $23,979,364
========== ===========
See accompanying notes to financial statements.
104
For the Six Months Ended December 31, 2007
GLOBAL RESOURCES WORLD PRECIOUS GOLD AND PRECIOUS
FUND MINERALS FUND METALS FUND
NET INVESTMENT INCOME
INCOME:
- -----------------------------------------------------------------------------------------------------------------------
Dividends from unaffiliated issuers $ 8,290,979 $ 1,333,800 $ 300,220
Foreign taxes withheld on dividends (394,302) (137,421) (15,110)
------------ ------------ -----------
Net dividends 7,896,677 1,196,379 285,110
Interest and other 3,064,678 1,893,412 699,291
------------ ------------ -----------
TOTAL INCOME 10,961,355 3,089,791 984,401
EXPENSES:
- -----------------------------------------------------------------------------------------------------------------------
Management fee 4,452,644 3,063,563 704,857
Transfer agent fees and expenses 1,250,871 820,356 230,155
Accounting service fees and expenses 326,581 250,796 73,209
Professional fees 95,756 77,596 36,082
Custodian fees 309,861 328,930 85,967
Shareholder reporting 186,840 129,709 52,517
Registration fees 28,453 22,534 13,068
Trustee fees and expenses 12,923 12,923 12,923
Miscellaneous 66,054 59,732 34,363
------------ ------------ -----------
Total expenses before reductions 6,729,983 4,766,139 1,243,141
Expenses offset - Note 1J (45,134) (13,581) (2,799)
Expenses reimbursed - Note 2 -- -- --
------------ ------------ -----------
NET EXPENSES 6,684,849 4,752,558 1,240,342
- -----------------------------------------------------------------------------------------------------------------------
NET INVESTMENT INCOME (LOSS) 4,276,506 (1,662,767) (255,941)
- -----------------------------------------------------------------------------------------------------------------------
NET REALIZED AND UNREALIZED
GAIN ON INVESTMENTS
Realized gain (loss) from:
Securities from unaffiliated issuers 178,243,640 105,044,206 24,599,713
Securities from affiliated issuers 61,752 9,641 --
Written options 350,785 449,585 1,824,037
Foreign currency transactions (568,032) 78,993 9,090
------------ ------------ -----------
NET REALIZED GAIN 178,088,145 105,582,425 26,432,840
------------ ------------ -----------
Net change in unrealized appreciation (depreciation) of:
Investments 50,403,905 50,848,119 14,388,738
Written options (8,349) (626,359) (199,997)
Other assets and liabilities
denominated in foreign currencies 125,707 24,775 (3,969)
------------ ------------ -----------
NET UNREALIZED APPRECIATION 50,521,263 50,246,535 14,184,772
- -----------------------------------------------------------------------------------------------------------------------
NET REALIZED AND UNREALIZED GAIN
ON INVESTMENTS 228,609,408 155,828,960 40,617,612
- -----------------------------------------------------------------------------------------------------------------------
NET INCREASE IN NET ASSETS
RESULTING FROM OPERATIONS $232,885,914 $154,166,193 $40,361,671
============ ============ ===========
105
STATEMENTS OF CHANGES IN NET ASSETS
U.S. TREASURY SECURITIES
CASH FUND
-------------------------------------
SIX MONTHS ENDED YEAR ENDED
DECEMBER 31, 2007 JUNE 30, 2007
(UNAUDITED)
INCREASE (DECREASE)
IN NET ASSETS
FROM OPERATIONS:
- -----------------------------------------------------------------------------------------
Net investment income $ 2,138,341 $ 5,084,492
Net realized gain (loss) -- --
Net unrealized appreciation -- --
------------ ------------
NET INCREASE IN NET ASSETS RESULTING FROM
OPERATIONS 2,138,341 5,084,492
DISTRIBUTIONS TO SHAREHOLDERS:
- -----------------------------------------------------------------------------------------
From net investment income (2,138,341) (5,084,891)
------------ ------------
TOTAL DISTRIBUTIONS TO SHAREHOLDERS (2,138,341) (5,084,891)
FROM CAPITAL SHARE TRANSACTIONS:
- -----------------------------------------------------------------------------------------
Proceeds from shares sold 137,612,201 383,660,609
Distributions reinvested 2,078,710 4,907,563
------------ ------------
139,690,911 388,568,172
Cost of shares redeemed (141,406,071) (391,584,524)
------------ ------------
NET INCREASE (DECREASE) IN NET ASSETS FROM
CAPITAL SHARE TRANSACTIONS (1,715,160) (3,016,352)
- -----------------------------------------------------------------------------------------
NET INCREASE (DECREASE) IN NET ASSETS (1,715,160) (3,016,751)
- -----------------------------------------------------------------------------------------
NET ASSETS
Beginning of period 116,011,565 119,028,316
- -----------------------------------------------------------------------------------------
END OF PERIOD $114,296,405 $116,011,565
- -----------------------------------------------------------------------------------------
Accumulated undistributed net investment income,
end of period $ 1,043 $ 1,043
============ ============
CAPITAL SHARE ACTIVITY
- -----------------------------------------------------------------------------------------
Shares sold 137,612,201 383,660,609
Shares reinvested 2,078,710 4,907,563
Shares redeemed (141,406,071) (391,584,524)
------------ ------------
NET SHARE ACTIVITY (1,715,160) (3,016,352)
============ ============
See accompanying notes to financial statements.
106
U.S. GOVERNMENT SECURITIES
SAVINGS FUND NEAR-TERM TAX FREE FUND
------------------------------------- -------------------------------------
SIX MONTHS ENDED YEAR ENDED SIX MONTHS ENDED YEAR ENDED
DECEMBER 31, 2007 JUNE 30, 2007 DECEMBER 31, 2007 JUNE 30, 2007
(UNAUDITED) (UNAUDITED)
INCREASE (DECREASE)
IN NET ASSETS
FROM OPERATIONS:
- ----------------------------------------------------------------------------------------------------------------------------------
Net investment income $ 10,456,001 $ 21,124,115 $ 238,897 $ 501,566
Net realized gain (loss) 2,933 2,458 12 (9,533)
Net unrealized appreciation -- -- 216,858 67,546
------------ ------------ ----------- -----------
NET INCREASE IN NET ASSETS RESULTING FROM
OPERATIONS 10,458,934 21,126,573 455,767 559,579
DISTRIBUTIONS TO SHAREHOLDERS:
- ----------------------------------------------------------------------------------------------------------------------------------
From net investment income (10,453,543) (21,124,058) (238,561) (501,654)
------------ ------------ ----------- -----------
TOTAL DISTRIBUTIONS TO SHAREHOLDERS (10,453,543) (21,124,058) (238,561) (501,654)
FROM CAPITAL SHARE TRANSACTIONS:
- ----------------------------------------------------------------------------------------------------------------------------------
Proceeds from shares sold 208,426,971 368,491,428 1,601,689 2,312,722
Distributions reinvested 10,211,087 20,689,962 183,889 384,910
------------ ------------ ----------- -----------
218,638,058 389,181,390 1,785,578 2,697,632
Cost of shares redeemed (221,041,657) (355,506,639) (1,933,624) (5,202,546)
------------ ------------ ----------- -----------
NET INCREASE (DECREASE) IN NET ASSETS FROM
CAPITAL SHARE TRANSACTIONS (2,403,599) 33,674,751 (148,046) (2,504,914)
- ----------------------------------------------------------------------------------------------------------------------------------
NET INCREASE (DECREASE) IN NET ASSETS (2,398,208) 33,677,266 69,160 (2,446,989)
- ----------------------------------------------------------------------------------------------------------------------------------
NET ASSETS
Beginning of period 469,094,505 435,417,239 13,383,417 15,830,406
- ----------------------------------------------------------------------------------------------------------------------------------
END OF PERIOD $466,696,297 $469,094,505 $13,452,577 $13,383,417
- ----------------------------------------------------------------------------------------------------------------------------------
Accumulated undistributed net investment income,
end of period $ 409,406 $ 406,948 $ 17,659 $ 17,323
============ ============ =========== ===========
CAPITAL SHARE ACTIVITY
- ----------------------------------------------------------------------------------------------------------------------------------
Shares sold 208,426,971 368,491,428 743,801 1,078,441
Shares reinvested 10,211,087 20,689,962 85,600 179,915
Shares redeemed (221,041,657) (355,506,639) (898,465) (2,428,359)
------------ ------------ ----------- -----------
NET SHARE ACTIVITY (2,403,599) 33,674,751 (69,064) (1,170,003)
============ ============ =========== ===========
107
STATEMENTS OF CHANGES IN NET ASSETS
TAX FREE FUND
---------------------------------------
SIX MONTHS ENDED YEAR ENDED
DECEMBER 31, 2007 JUNE 30, 2007
(UNAUDITED)
INCREASE (DECREASE)
IN NET ASSETS
FROM OPERATIONS:
- ------------------------------------------------------------------------------------------
Net investment income (loss) $ 327,629 $ 619,096
Net realized gain 2,373 15,231
Net unrealized appreciation (depreciation) 177,340 (41,981)
----------- -----------
NET INCREASE IN NET ASSETS RESULTING
FROM OPERATIONS 507,342 592,346
DISTRIBUTIONS TO SHAREHOLDERS:
- ------------------------------------------------------------------------------------------
From net investment income (328,037) (615,389)
From net capital gains -- --
----------- -----------
TOTAL DISTRIBUTIONS TO SHAREHOLDERS (328,037) (615,389)
FROM CAPITAL SHARE TRANSACTIONS:
- ------------------------------------------------------------------------------------------
Proceeds from shares sold 3,275,775 4,168,323
Distributions reinvested 265,141 509,442
Proceeds from short-term trading fees -- --
----------- -----------
3,540,916 4,677,765
Cost of shares redeemed (2,246,204) (3,706,262)
----------- -----------
NET INCREASE (DECREASE) IN NET ASSETS
FROM CAPITAL SHARE TRANSACTIONS 1,294,712 971,503
- ------------------------------------------------------------------------------------------
NET INCREASE IN NET ASSETS 1,474,017 948,460
- ------------------------------------------------------------------------------------------
NET ASSETS
Beginning of period 15,939,992 14,991,532
- ------------------------------------------------------------------------------------------
END OF PERIOD $17,414,009 $15,939,992
- ------------------------------------------------------------------------------------------
Accumulated undistributed net investment income
(distributions in excess of net investment
income), end of period $ 31,767 $ 32,174
=========== ===========
CAPITAL SHARE ACTIVITY
- ------------------------------------------------------------------------------------------
Shares sold 271,262 341,911
Shares reinvested 21,969 41,891
Shares redeemed (186,843) (304,399)
----------- -----------
NET SHARE ACTIVITY 106,388 79,403
=========== ===========
See accompanying notes to financial statements.
108
CHINA REGION
ALL AMERICAN EQUITY FUND OPPORTUNITY FUND
----------------------------------- -------------------------------------
SIX MONTHS ENDED YEAR ENDED SIX MONTHS ENDED YEAR ENDED
DECEMBER 31, 2007 JUNE 30, 2007 DECEMBER 31, 2007 JUNE 30, 2007
(UNAUDITED) (UNAUDITED)
INCREASE (DECREASE)
IN NET ASSETS
FROM OPERATIONS:
- ---------------------------------------------------------------------------------------------------------------------------------
Net investment income (loss) $ (89,669) $ (62,274) $ (130,983) $ 14,318
Net realized gain 1,238,530 2,102,393 21,804,300 13,318,745
Net unrealized appreciation (depreciation) 1,614,892 1,982,026 2,306,047 17,987,184
----------- ----------- ------------ -----------
NET INCREASE IN NET ASSETS RESULTING
FROM OPERATIONS 2,763,753 4,022,145 23,979,364 31,320,247
DISTRIBUTIONS TO SHAREHOLDERS:
- ---------------------------------------------------------------------------------------------------------------------------------
From net investment income -- -- (2,097,809) (1,333,614)
From net capital gains (2,812,977) (2,948,106) (24,936,863) --
----------- ----------- ------------ -----------
TOTAL DISTRIBUTIONS TO SHAREHOLDERS (2,812,977) (2,948,106) (27,034,672) (1,333,614)
FROM CAPITAL SHARE TRANSACTIONS:
- ---------------------------------------------------------------------------------------------------------------------------------
Proceeds from shares sold 5,334,969 3,497,874 61,854,825 41,842,142
Distributions reinvested 2,717,435 2,897,452 26,049,930 1,288,571
Proceeds from short-term trading fees 257 603 184,713 153,356
----------- ----------- ------------ -----------
8,052,661 6,395,929 88,089,468 43,284,069
Cost of shares redeemed (2,577,907) (5,538,258) (44,447,762) (47,227,127)
----------- ----------- ------------ -----------
NET INCREASE (DECREASE) IN NET ASSETS
FROM CAPITAL SHARE TRANSACTIONS 5,474,754 857,671 43,641,706 (3,943,058)
- ---------------------------------------------------------------------------------------------------------------------------------
NET INCREASE IN NET ASSETS 5,425,530 1,931,710 40,586,398 26,043,575
- ---------------------------------------------------------------------------------------------------------------------------------
NET ASSETS
Beginning of period 23,479,204 21,547,494 93,804,718 67,761,143
- ---------------------------------------------------------------------------------------------------------------------------------
END OF PERIOD $28,904,734 $23,479,204 $134,391,116 $93,804,718
- ---------------------------------------------------------------------------------------------------------------------------------
Accumulated undistributed net investment income
(distributions in excess of net investment
income), end of period $ (89,669) $ -- $ (4,487,642) $(2,258,850)
=========== =========== ============ ===========
CAPITAL SHARE ACTIVITY
- ---------------------------------------------------------------------------------------------------------------------------------
Shares sold 175,677 128,990 3,894,586 4,193,823
Shares reinvested 96,056 115,759 2,136,992 128,472
Shares redeemed (88,007) (204,356) (2,958,214) (4,630,983)
----------- ----------- ------------ -----------
NET SHARE ACTIVITY 183,726 40,393 3,073,364 (308,688)
=========== =========== ============ ===========
109
STATEMENTS OF CHANGES IN NET ASSETS
GLOBAL RESOURCES FUND
--------------------------------------
SIX MONTHS ENDED YEAR ENDED
DECEMBER 31, 2007 JUNE 30, 2007
(UNAUDITED)
INCREASE (DECREASE)
IN NET ASSETS
FROM OPERATIONS:
- ----------------------------------------------------------------------------------------
Net investment income (loss) $ 4,276,506 $ 9,042,961
Net realized gain 178,088,145 92,470,318
Net unrealized appreciation (depreciation) 50,521,263 109,964,218
-------------- --------------
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS 232,885,914 211,477,497
DISTRIBUTIONS TO SHAREHOLDERS:
- ----------------------------------------------------------------------------------------
From net investment income (78,241,393) (61,878,978)
From net capital gains (176,392,792) (120,720,087)
-------------- --------------
TOTAL DISTRIBUTIONS TO SHAREHOLDERS (254,634,185) (182,599,065)
FROM CAPITAL SHARE TRANSACTIONS:
- ----------------------------------------------------------------------------------------
Proceeds from shares sold 421,990,158 645,950,934
Distributions reinvested 246,775,705 175,690,973
Proceeds from short-term trading fees 50,234 65,595
-------------- --------------
668,816,097 821,707,502
Cost of shares redeemed (335,490,132) (749,000,008)
-------------- --------------
NET INCREASE (DECREASE) IN NET ASSETS
FROM CAPITAL SHARE TRANSACTIONS 333,325,965 72,707,494
- ----------------------------------------------------------------------------------------
NET INCREASE (DECREASE) IN NET ASSETS 311,577,694 101,585,926
- ----------------------------------------------------------------------------------------
NET ASSETS
Beginning of period 1,383,250,407 1,281,664,481
- ----------------------------------------------------------------------------------------
END OF PERIOD $1,694,828,101 $1,383,250,407
- ----------------------------------------------------------------------------------------
Accumulated undistributed net investment income
(distributions in excess of net income), end
of period $ (86,954,504) $ (12,989,617)
============== ==============
CAPITAL SHARE ACTIVITY
- ----------------------------------------------------------------------------------------
Shares sold 22,137,665 39,780,025
Shares reinvested 14,892,921 12,000,749
Shares redeemed (18,359,299) (48,049,221)
-------------- --------------
NET SHARE ACTIVITY 18,671,287 3,731,553
============== ==============
See accompanying notes to financial statements.
110
WORLD PRECIOUS GOLD AND PRECIOUS
MINERALS FUND METALS FUND
------------------------------------- -------------------------------------
SIX MONTHS ENDED YEAR ENDED SIX MONTHS ENDED YEAR ENDED
DECEMBER 31, 2007 JUNE 30, 2007 DECEMBER 31, 2007 JUNE 30, 2007
(UNAUDITED) (UNAUDITED)
INCREASE (DECREASE)
IN NET ASSETS
FROM OPERATIONS:
- ---------------------------------------------------------------------------------------------------------------------------------
Net investment income (loss) $ (1,662,767) $ 564,918 $ (255,941) $ 689,923
Net realized gain 105,582,425 106,003,267 26,432,840 27,431,014
Net unrealized appreciation (depreciation) 50,246,535 (11,580,180) 14,184,772 (36,875,467)
-------------- ------------ ------------ ------------
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS 154,166,193 94,988,005 40,361,671 (8,754,530)
DISTRIBUTIONS TO SHAREHOLDERS:
- ---------------------------------------------------------------------------------------------------------------------------------
From net investment income (99,747,352) (51,570,418) -- --
From net capital gains (103,097,880) (69,178,178) (25,521,881) --
-------------- ------------ ------------ ------------
TOTAL DISTRIBUTIONS TO SHAREHOLDERS (202,845,232) (120,748,596) (25,521,881) --
FROM CAPITAL SHARE TRANSACTIONS:
- ---------------------------------------------------------------------------------------------------------------------------------
Proceeds from shares sold 191,529,198 697,217,101 41,958,499 187,856,134
Distributions reinvested 192,776,672 114,711,593 24,120,907 --
Proceeds from short-term trading fees 114,619 815,105 51,630 278,592
-------------- ------------ ------------ ------------
384,420,489 812,743,799 66,131,036 188,134,726
Cost of shares redeemed (254,401,033) (783,452,968) (63,140,192) (208,645,621)
-------------- ------------ ------------ ------------
NET INCREASE (DECREASE) IN NET ASSETS
FROM CAPITAL SHARE TRANSACTIONS 130,019,456 29,290,831 2,990,844 (20,510,895)
- ---------------------------------------------------------------------------------------------------------------------------------
NET INCREASE (DECREASE) IN NET ASSETS 81,340,417 3,530,240 17,830,634 (29,265,425)
- ---------------------------------------------------------------------------------------------------------------------------------
NET ASSETS
Beginning of period 923,779,031 920,248,791 178,761,925 208,027,350
- ---------------------------------------------------------------------------------------------------------------------------------
END OF PERIOD $1,005,119,448 $923,779,031 $196,592,559 $178,761,925
- ---------------------------------------------------------------------------------------------------------------------------------
Accumulated undistributed net investment income
(distributions in excess of net income), end
of period $ (117,120,810) $(15,710,691) $ 670,219 $ 926,160
============== ============ ============ ============
CAPITAL SHARE ACTIVITY
- ---------------------------------------------------------------------------------------------------------------------------------
Shares sold 6,255,435 24,505,326 2,434,069 12,003,311
Shares reinvested 8,106,672 4,350,079 1,635,316 --
Shares redeemed (8,662,476) (28,153,172) (3,807,209) (13,510,813)
-------------- ------------ ------------ ------------
NET SHARE ACTIVITY 5,699,631 702,233 262,176 (1,507,502)
============== ============ ============ ============
111
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) December 31, 2007
NOTE 1: SIGNIFICANT ACCOUNTING POLICIES
U.S. Global Investors Funds (Trust) is organized as a Massachusetts
business trust, consisting of nine separate funds (Funds), as
follows: U.S. Treasury Securities Cash, U.S. Government Securities
Savings, Near-Term Tax Free, Tax Free, All American Equity, China
Region Opportunity, Global Resources, World Precious Minerals, and
Gold and Precious Metals. The Trust is an open-end management
investment company registered under the Investment Company Act of
1940, as amended. All funds are diversified with the exception of
China Region Opportunity, Global Resources, World Precious
Minerals, and Gold and Precious Metals.
Gold and Precious Metals Fund changed its name from Gold Shares
Fund effective December 1, 2007.
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 U.S.
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 asked 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 and investments of U.S. Treasury Securities Cash and U.S.
Government Securities Savings Funds are valued at amortized cost,
which approximates market value. An independent pricing service
values municipal securities and long-term U.S. Government
obligations using a system based on such factors as credit rating,
maturity, coupon and type of security to determine fair value.
B. FAIR VALUED SECURITIES
Securities for which market quotations are not readily available or
which are subject to legal restrictions 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 following factors are generally considered in determining fair
value: nature and duration of any trading restrictions, trading
volume, market values of unrestricted shares of the same or similar
class, investment management's judgment regarding the market
experience of the issuer, financial status and other operational
and market factors affecting the issuer, issuer's management,
quality of the underlying property based on review of independent
geological studies, the extent of a Fund's investment in the
trading securities of the issuer; and other relevant matters. The
fair values may differ from what would have been used had a broader
market for these securities existed.
112
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) December 31, 2007
For securities traded on international exchanges, if events which
may materially affect the value of a Fund's securities occur after
the close of the primary exchange and before a Fund's net asset
value is next determined, then those securities will be valued at
their fair value as determined in good faith under the supervision
of the Board of Trustees. The Funds may use a systematic fair value
model provided by an independent third party to value international
securities.
C. 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, except that certain dividends from foreign
securities where the ex-dividend date may have passed are recorded
as soon as a fund is informed of the ex-dividend data in the
exercise of reasonable diligence. Interest income, which may
include original issue discount, is recorded on an accrual basis.
Discounts and premiums on securities purchased are accreted and
amortized, respectively, on a yield-to-maturity basis as
adjustments to interest income.
The Funds may purchase securities on a when-issued or
delayed-delivery basis and segregate the liquid assets on their
books to collateralize the obligation until trade settlement. Such
investments are accounted for in the same manner as marketable
portfolio securities.
The equity funds may invest in private placements and initial
public offerings (IPOs), the volatility of which may significantly
affect performance. There is no guarantee that these high-risk
investments will affect a Fund's performance in the same way in the
future.
D. 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 principal amount of the repurchase obligation. The
Funds use joint tri-party repurchase agreement accounts with other
funds under common management where uninvested cash is collectively
invested in repurchase agreements, and each participating fund owns
an undivided interest in the account.
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 risk 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
113
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) December 31, 2007
proceeds from securities sold through the exercise of the option is
adjusted by the amount of the premium.
Transactions in written call options during the six months ended
December 31, 2007, were as follows:
GLOBAL WORLD PRECIOUS
RESOURCES FUND MINERALS FUND
-----------------------------------------------
NUMBER OF PREMIUMS NUMBER OF PREMIUMS
CONTRACTS RECEIVED CONTRACTS RECEIVED
Options outstanding at June 30, 2007 500 $ 43,349 7,130 $ 2,066,859
Options written 1,300 307,436 4,425 1,644,737
Options closed (1,300) (307,436) (6,880) (1,824,037)
Options expired (500) (43,349) -- --
Options exercised -- -- (4,675) (1,887,559)
------- --------- ------ -----------
Options outstanding at December 31, 2007 -- $ -- -- $ --
======= ========= ====== ===========
GOLD AND PRECIOUS
METALS FUND
---------------------
NUMBER OF PREMIUMS
CONTRACTS RECEIVED
Options outstanding at June 30, 2007 2,850 $ 785,797
Options written 1,525 638,927
Options closed (1,929) (449,585)
Options expired -- --
Options exercised (2,446) (975,139)
------- ---------
Options outstanding at December 31, 2007 -- $ --
======= =========
F. 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 transaction. 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 unrealized foreign currency gains or
losses are reported separately.
G. FORWARD FOREIGN CURRENCY CONTRACTS
The Funds may enter into forward foreign currency contracts to lock
in the U.S. dollar cost of purchase and sale transactions or to
defend the portfolio against currency fluctuations. A forward
foreign currency contract is a commitment to purchase or sell a
foreign currency at a future date at a negotiated rate. These
contracts are valued daily, and the Fund's net equity therein,
representing unrealized gain or loss on the contracts as measured
by the difference between the forward foreign exchange rates at the
dates of entry into the contracts and the forward rates at the
reporting, is included in the statement of assets and liabilities.
114
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) December 31, 2007
Realized and unrealized gains and losses are included in the
statement of operations. Risks may arise upon entering into these
contracts from the potential inability of counterparties to meet
the terms of the contract and from unanticipated movements in the
value of foreign currencies relative to the U.S. dollar.
There were no open forward foreign currency contracts at December
31, 2007.
H. FEDERAL INCOME TAXES
The Funds intend to continue to comply with the requirements of
Subchapter M of the Internal Revenue Code applicable to regulated
investment companies and to distribute substantially all of their
taxable income to shareholders. Accordingly, no provision for
federal income taxes is required.
I. 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 accounting principles
generally accepted in the United States. Accordingly, periodic
reclassifications are made within the Funds' capital accounts to
reflect income and gains available for distribution under income
tax regulations.
The Funds generally make distributions at least annually. The U.S.
Treasury Securities Cash and U.S. Government Securities Savings
Funds accrue dividends, on a daily basis with payment monthly. The
Tax Free and Near-Term Tax Free Funds pay monthly dividends.
Dividends and distributions payable at period end are processed for
reinvestment on the following business day.
J. EXPENSES
Each Fund bears expenses incurred specifically on its behalf plus
an allocation of its share of Trust level expenses. 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.
K. SHORT-TERM TRADING (REDEMPTION) FEES
Shares held in the All American Equity Fund 30 days or less are
subject to a short-term trading fee equal to 0.10% of the proceeds
of the redeemed shares. Shares held in the China Region Opportunity
Fund 180 days or less are subject to a short-term trading fee equal
to 1.00% of the proceeds of the redeemed shares. Shares held in the
Global Resources Fund held 30 days or less are subject to a
short-term trading fee equal to 0.25% of the proceeds of the
redeemed shares. Shares held in the World Precious Minerals and
Gold and Precious Metals Funds 30 days or less are subject to a
short-term trading fee equal to 0.50% of the proceeds of the
redeemed shares. These fees, which are retained by the Funds, are
accounted for as an addition to paid-in capital.
115
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) December 31, 2007
L. USE OF ESTIMATES IN FINANCIAL STATEMENT PREPARATION
The preparation of financial statements in conformity with
accounting principles generally accepted in the United States
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.
M. NEW ACCOUNTING PRONOUNCEMENTS
In June 2006, the Financial Accounting Standards Board issued
Interpretation No. 48, Accounting for Uncertainty in Income Taxes -
an interpretation of FASB Statement No. 109 (FIN 48). FIN 48 sets
forth a recognition threshold and measurement method for the
financial statement recognition and measurement of a tax position
taken or expected to be taken on a tax return. FIN 48 is effective
on the last business day of the semi-annual reporting period for
fiscal years beginning after December 15, 2006, and will be applied
to all open tax years as of the effective date. As a result, FIN 48
was adopted effective December 31, 2007, for the Funds. Upon
adoption, funds must adjust their financial statements and NAV
calculations to reflect only those tax positions that are more
likely-than-not to be sustained. Management has analyzed the tax
positions of the Funds based on the open tax years of fiscal 2004
through 2007. There was no impact to the financial statements upon
adoption.
In September 2006, Statement of Financial Accounting Standards No.
157, Fair Value Measurements (SFAS 157), was issued and is
effective for fiscal years beginning after November 15, 2007. SFAS
157 defines fair value, establishes a framework for measuring fair
value and expands disclosures about fair value measurements.
Management is currently evaluating the impact the adoption of SFAS
157 will have on the Funds' financial statement disclosures.
NOTE 2: RELATED PARTY TRANSACTIONS
U.S. Global Investors, Inc. (Adviser), under an investment advisory
agreement with the Trust in effect through February 28, 2009,
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.
116
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) December 31, 2007
For the services of the Adviser, each Fund pays a management fee
based upon its net assets. Fees are accrued daily and paid monthly.
The contractual management fee for each fund is:
ANNUAL PERCENTAGE OF
FUND AVERAGE DAILY NET ASSETS
--------------------------------------------------------------------------
Gold and Precious Metals, .75% of the first $250,000,000 and
All American Equity .50% of the excess
and Tax Free
U.S. Treasury Securities Cash and .50% of the first $250,000,000 and
U.S. Government Securities Savings .375% of the excess
World Precious Minerals and 1.00% of the first $250,000,000 and
Global Resources .50% of the excess
Near-Term Tax Free 0.50%
China Region Opportunity 1.25%
The Adviser has agreed to reimburse specific funds so that their
total operating expenses will not exceed certain annual percentages
of average net assets. The expenses for the six months ended
December 31, 2007, were limited as follows: U.S. Treasury
Securities Cash Fund at 1.00%, U.S. Government Securities Savings
Fund at 0.45%, Near-Term Tax Free Fund at 0.45%, Tax Free Fund at
0.70% and All American Equity Fund at 1.75%. These contractual
limitations will continue through November 1, 2008, and until such
later date as the Adviser determines.
United Shareholder Services, Inc. (USSI), a wholly-owned subsidiary
of the Adviser, is the transfer agent for the Funds. Each Fund pays
fees based on the number of shareholder accounts, certain base fees
and transaction- and activity-based fees for transfer agency and
shareholder mailing services. Certain account fees are paid
directly by shareholders to the transfer agent, which, in turn,
reduces its charge to the Funds. The Adviser was reimbursed for
in-house legal, compliance and internal administration services
pertaining to the Funds during the six months ended December 31,
2007, in the amounts of $116,483, $39,513 and $16,372,
respectively.
Brown Brothers Harriman & Co. serves as the custodian, fund
accounting and administration service agent with a fee structure
based primarily on average net assets of the Funds.
The independent Trustees receive compensation for serving on the
Board. The Chairman and members of special committees receive
additional compensation. Trustees are also reimbursed for
out-of-pocket expenses incurred while attending meetings. Frank E.
Holmes receives no compensation from the Funds for serving on the
Board.
117
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) December 31, 2007
NOTE 3: INVESTMENT ACTIVITY
Cost of purchases and proceeds from sales of long-term securities
for the six months ended December 31, 2007, are summarized as
follows:
FUND PURCHASES SALES
----------------------------------------------------------------------
Near-Term Tax Free $ 2,140,877 $ 403,048
Tax Free 2,241,016 1,331,753
All American Equity 23,973,479 22,400,576
China Region Opportunity 116,703,209 106,146,217
Global Resources 1,022,814,401 955,207,002
World Precious Minerals 218,582,621 282,304,487
Gold and Precious Metals 50,508,475 75,850,885
U.S. Treasury Securities Cash and U.S. Government Securities
Savings held only short-term investments. The Funds neither
purchased nor sold long-term U.S. government securities during the
period.
Investments in foreign issuers as a percent of total investments at
December 31, 2007, were: 95.11% of China Region Opportunity, 53.79%
of Global Resources, 77.67% of World Precious Minerals and 63.57%
of Gold and Precious Metals.
NOTE 4: TAX INFORMATION
The following table presents the income tax basis of the securities
owned at December 31, 2007, and the tax basis components of net
unrealized appreciation or depreciation:
GROSS GROSS NET UNREALIZED
AGGREGATE UNREALIZED UNREALIZED APPRECIATION
FUND TAX COST APPRECIATION DEPRECIATION (DEPRECIATION)
------------------------------------------------------------------------------------------------
U.S. Treasury Securities Cash $ 115,043,767 $ -- $ -- $ --
U.S. Government Securities Savings 465,745,504 -- -- --
Near-Term Tax Free 13,163,995 180,020 (702) 179,318
Tax Free 16,741,199 579,751 (90,133) 488,618
All American Equity 23,783,731 5,508,319 (361,508) 5,146,811
China Region Opportunity 104,530,227 27,961,308 (2,749,460) 25,211,848
Global Resources 1,329,717,491 418,948,376 (68,793,767) 350,154,609
World Precious Minerals 793,364,183 305,721,263 (67,971,801) 237,749,462
Gold and Precious Metals 172,386,610 39,075,708 (7,649,526) 31,426,182
118
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) December 31, 2007
As of June 30, 2007, the components of distributable earnings on a
tax basis were as follows:
UNDISTRIBUTED UNDISTRIBUTED UNDISTRIBUTED NET UNREALIZED
TAX EXEMPT ORDINARY LONG-TERM APPRECIATION
FUND INCOME INCOME CAPITAL GAINS (DEPRECIATION)
--------------------------------------------------------------------------------------------------
U.S. Treasury Securities Cash $ $ 4,412 $ -- $ --
U.S. Government Securities Savings -- 438,725 -- --
Near-Term Tax Free -- 26,084 -- (37,540)
Tax Free 13,012 28,412 -- 311,278
All American Equity -- 1,526,913 239,229 3,517,842
China Region Opportunity -- 12,096,548 334,664 19,669,240
Global Resources -- 78,201,669 55,580,940 206,310,981
World Precious Minerals -- 92,424,515 33,909,381 98,801,880
Gold and Precious Metals -- 1,341,359 -- 16,647,148
The differences between book-basis and tax-basis unrealized
appreciation (depreciation) for the All American Equity, China
Region Opportunity, Global Resources, World Precious Minerals and
Gold and Precious Metals Funds are attributable primarily to the
tax deferral of losses on wash sales, investment in passive foreign
investment companies (PFIC), forwards marked to market, unreversed
return of capital in Canadian Trusts, adjustments for partnerships
and tax straddle loss deferrals on written options.
The tax character of distributions paid during the six months ended
December 31, 2007, were as follows:
TAX EXEMPT ORDINARY LONG-TERM
FUND INCOME INCOME CAPITAL GAINS TOTAL
---------------------------------------------------------------------------------------------
U.S. Treasury Securities Cash $ -- $ 2,138,341 $ -- $ 2,138,341
U.S. Government Securities Savings -- 10,453,543 -- 10,453,543
Near-Term Tax Free 204,259 34,302 -- 238,561
Tax Free 293,418 34,619 -- 328,037
All American Equity -- 2,294,348 518,629 2,812,977
China Region Opportunity -- 25,190,630 1,844,042 27,034,672
Global Resources -- 149,160,510 105,473,675 254,634,185
World Precious Minerals -- 124,184,685 78,660,547 202,845,232
Gold and Precious Metals -- -- 25,521,881 25,521,881
119
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) December 31, 2007
The tax character of distributions paid during the fiscal year
ended June 30, 2007, were as follows:
TAX EXEMPT ORDINARY LONG-TERM
FUND INCOME INCOME CAPITAL GAINS TOTAL
----------------------------------------------------------------------------------------------
U.S. Treasury Securities Cash $ -- $ 5,084,891 $ -- $ 5,084,891
U.S. Government Securities Savings -- 21,124,058 -- 21,124,058
Near-Term Tax Free 439,674 61,980 -- 501,654
Tax Free 542,232 73,157 -- 615,389
All American Equity -- 2,601,988 346,118 2,948,106
China Region Opportunity -- 1,333,614 -- 1,333,614
Global Resources -- 146,150,003 36,449,062 182,599,065
World Precious Minerals -- 77,575,723 43,172,873 120,748,596
Gold and Precious Metals -- -- -- --
Net realized capital loss carryforwards, for federal income tax
purposes, may be used to offset current or future capital gains
until expiration. The Funds' tax-basis capital gains and losses are
determined only at the end of each fiscal year. The loss
carryforwards and related expiration dates for each fund, as of
June 30, 2007, are as follows:
EXPIRATION DATE
FUND 2008 2009 2010 2011
------------------------------------------------------------------------------------
U.S. Treasury Securities Cash $ 10,657 $ -- $ -- $ 285
U.S. Government Securities Savings -- -- -- --
Near-Term Tax Free 17,590 59,454 -- --
Tax Free -- 236,924 -- --
All American Equity -- -- -- --
China Region Opportunity -- -- -- --
Global Resources -- -- -- --
World Precious Minerals -- -- -- --
Gold and Precious Metals 2,931,501 4,098,335 -- 1,122,291
EXPIRATION DATE
FUND 2012 2013 2014 2015 TOTAL
---------------------------------------------------------------------------------------
U.S. Treasury Securities Cash $ -- $ -- $ -- $ -- $ 10,942
U.S. Government Securities Savings 9,621 -- -- -- 9,621
Near-Term Tax Free 46,218 33,686 2,760 202,719 362,427
Tax Free 90,567 421,236 -- -- 748,727
All American Equity -- -- -- -- --
China Region Opportunity -- -- -- -- --
Global Resources -- -- -- -- --
World Precious Minerals -- -- -- -- --
Gold and Precious Metals -- -- -- -- 8,152,127
POST OCTOBER 31, 2006 POST OCTOBER 31, 2006
FUND CAPITAL LOSS DEFERRAL CURRENCY LOSS DEFERRAL
--------------------------------------------------------------------------------
Near-Term Tax Free $2,877 $ --
The amounts above, in accordance with tax rules, are deemed to have
occurred on July 1, 2007.
120
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) December 31, 2007
NOTE 5: RISKS OF CONCENTRATIONS
The China Region Opportunity Fund may be exposed to risks not
typically associated with investments in the United States, due to
concentration of investments in foreign issuers in the region.
These investments present risks resulting from disruptive political
or economic conditions and the potential imposition of adverse
governmental laws or currency exchange restrictions affecting the
area.
The investment policies of the World Precious Minerals and Gold and
Precious Metals Funds present unique risks to their respective
portfolios' values. The prices of gold and other precious metals
may be subject to fluctuations caused by international monetary and
political developments including trade or currency restrictions,
currency devaluation and revaluation, and social and political
conditions within a country. Fluctuations in the prices of gold and
other precious metals will affect the market values of the
securities held by these funds.
NOTE 6: CREDIT ARRANGEMENTS
Each of the U.S. Global Investors Funds, along with other funds
under common management, has a revolving credit facility with Brown
Brothers Harriman & Co. (BBH). Borrowings of each Fund are
collateralized by any or all of the securities held by BBH as the
Funds' custodian. Interest on borrowings is charged at the current
overnight Federal Funds Rate plus 2%. Each fund has a maximum
borrowing limit of 10% of qualified assets. The aggregate
borrowings by all the funds under the agreement cannot exceed
$30,000,000 at any one time. There were no borrowings under the
revolving credit facility during the period ended December 31,
2007. The U.S. Global Investors Funds paid BBH $11,437 in
commitment fees during the six months ended December 31, 2007,
under this arrangement.
NOTE 7: SHARES OF BENEFICIAL INTEREST
At December 31, 2007, individual shareholders holding more than 5%
of outstanding shares comprised 6.90% and 18.16% of the Near-Term
Tax Free Fund and Tax Free Fund, respectively. In addition, the
Adviser held 11.02% and 9.39% of the Near-Term Tax Free Fund and
the Tax Free Fund, respectively.
121
FINANCIAL HIGHLIGHTS
U.S. TREASURY SECURITIES CASH FUND
FOR A CAPITAL SHARE OUTSTANDING DURING THE SIX MONTHS ENDED DECEMBER 31, 2007
(UNAUDITED) AND EACH YEAR ENDED JUNE 30,
12/07 2007 2006 2005 2004 2003
NET ASSET VALUE, BEGINNING OF PERIOD $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
- -----------------------------------------------------------------------------------------------------------
Investment Activities
Net investment income .02 .04 .03 .01 --(a) .01
Net realized and unrealized gain -- -- -- -- -- --
-------- -------- -------- -------- -------- --------
Total from investment activities .02 .04 .03 .01 --(a) .01
-------- -------- -------- -------- -------- --------
Distributions from net investment income (.02) (.04) (.03) (.01) --(a) (.01)
- -----------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
- -----------------------------------------------------------------------------------------------------------
TOTAL RETURN (excluding account fees) (b) 1.80% 4.36% 3.11% 1.12% .08% .57%
Ratios to Average Net Assets: (c)
Net investment income 3.54% 4.27% 3.06% 1.11% .07% .52%
Total expenses 1.11% .91% .92% .97% 1.00% .97%
Expenses reimbursed (d) (.11)% (.02)% -- -- (.04)% --
Net recouped fees (e) -- -- .03% -- -- --
Net expenses (f) 1.00% .89% .95% .97% .96% .97%
NET ASSETS, END OF PERIOD (IN THOUSANDS) $114,296 $116,012 $119,028 $124,058 $112,575 $123,879
<FN>
(a) The per share amount does not round to a full penny.
(b) Total returns for periods less than one year are not annualized.
Assumes investment at the net asset value at the beginning of the
period, reinvestment of all distributions and a complete redemption
of the investment at the net asset value at the end of the period.
(c) Ratios are annualized for periods of less than one year.
(d) Expenses reimbursed 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.
(e) During the year ended June 30, 2004, the Adviser waived fees and/or
reimbursed expenses as a result of a Minimum Yield Agreement in the
amount of $45,136. As allowed by the recapture provision of this
agreement, the U.S. Treasury Securities Cash Fund reimbursed the
Adviser the previously waived amount of $45,136 during the year
ended June 30, 2006.
(f) The net expense ratios shown above reflect expenses after
reimbursements but exclude the effect of reductions to total
expenses for any expenses offset. Expense offset arrangements reduce
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. The effect of expenses
offset are as follows:
</FN>
SIX MONTHS
ENDED YEAR ENDED JUNE 30,
DECEMBER 31, ----------------------------------------
2007 2007 2006 2005 2004 2003
U.S. Treasury Securities Fund
-----------------------------
Ratios to Average Net Assets:
Expenses offset (g) -- -- -- -- -- --
<FN>
(g) Effect on the expense ratio was not greater than 0.005%.
</FN>
See accompanying notes to financial statements.
122
FINANCIAL HIGHLIGHTS
U.S. GOVERNMENT SECURITIES SAVINGS FUND
FOR A CAPITAL SHARE OUTSTANDING DURING THE SIX MONTHS ENDED DECEMBER 31, 2007
(UNAUDITED) AND EACH YEAR ENDED JUNE 30,
12/07 2007 2006 2005 2004 2003
NET ASSET VALUE, BEGINNING OF PERIOD $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
- -----------------------------------------------------------------------------------------------------------
Investment Activities
Net investment income .02 .05 .04 .02 .01 .01
Net realized and unrealized gain --(a) --(a) -- -- -- --
-------- -------- -------- -------- -------- --------
Total from investment activities .02 .05 .04 .02 .01 .01
-------- -------- -------- -------- -------- --------
Distributions from net investment income (.02) (.05) (.04) (.02) (.01) (.01)
- -----------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
- -----------------------------------------------------------------------------------------------------------
TOTAL RETURN (excluding account fees) (b) 2.25% 4.86% 3.69% 1.70% .63% 1.09%
Ratios to Average Net Assets: (c)
Net investment income 4.42% 4.75% 3.64% 1.67% .61% 1.08%
Total expenses .65% .62% .64% .65% .65% .61%
Expenses reimbursed (d) (.20)% (.17)% (.19)% (.20)% (.20)% (.16)%
Net expenses (e) .45% .45% .45% .45% .45% .45%
NET ASSETS, END OF PERIOD (IN THOUSANDS) $466,696 $469,095 $435,417 $411,979 $441,722 $529,829
<FN>
(a) The per share amount does not round to a full penny.
(b) Total returns for periods less than one year are not annualized.
Assumes investment at the net asset value at the beginning of the
period, reinvestment of all distributions and a complete redemption
of the investment at the net asset value at the end of the period.
(c) Ratios are annualized for periods of less than one year.
(d) Expenses reimbursed 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.
(e) The net expense ratios shown above reflect expenses after
reimbursements but exclude the effect of reductions to total
expenses for any expenses offset. Expense offset arrangements reduce
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. The effect of expenses
offset are as follows:
</FN>
SIX MONTHS
ENDED YEAR ENDED JUNE 30,
DECEMBER 31, ----------------------------------------
2007 2007 2006 2005 2004 2003
U.S. Government Securities Savings Fund
---------------------------------------
Ratios to Average Net Assets:
Expenses offset (f) -- -- -- -- -- --
<FN>
(f) Effect on the expense ratio was not greater than 0.005%.
</FN>
See accompanying notes to financial statements.
123
FINANCIAL HIGHLIGHTS
NEAR-TERM TAX FREE FUND
FOR A CAPITAL SHARE OUTSTANDING DURING THE SIX MONTHS ENDED DECEMBER 31, 2007
(UNAUDITED) AND EACH YEAR ENDED JUNE 30,
12/07 2007 2006 2005* 2004* 2003*
NET ASSET VALUE, BEGINNING OF PERIOD $2.12 $2.12 $2.17 $2.17 $2.23 $2.16
- ------------------------------------------------------------------------------------------------------
Investment Activities
Net investment income .04 .07 .07 .07 .06 .06
Net realized and unrealized gain (loss) .04 --(a) (.05) (.01) (.06) .07
------- ------- ------- ------- ------- -------
Total from investment activities .08 .07 .02 .06 .00 .13
------- ------- ------- ------- ------- -------
Distributions from net investment income (.04) (.07) (.07) (.06) (.06) (.06)
- ------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $2.16 $2.12 $2.12 $2.17 $2.17 $2.23
- ------------------------------------------------------------------------------------------------------
TOTAL RETURN (excluding account fees) (b) 3.70% 3.51% .75% 2.75% .20% 5.97%
Ratios to Average Net Assets: (c)
Net investment income 3.53% 3.43% 3.08% 2.79% 2.73% 2.83%
Total expenses 1.91% 1.63% 1.54% 1.49% 1.25% 1.44%
Expenses reimbursed (d) (1.46)% (1.18)% (1.09)% (1.04)% (.80)% (.94)%
Net expenses (e) .45% .45% .45% .45% .45% .50%
Portfolio turnover rate 3% 22% 33% 5% 21% 20%
NET ASSETS, END OF PERIOD (IN THOUSANDS) $13,453 $13,383 $15,830 $18,706 $18,673 $21,979
<FN>
* The values shown for Near-Term Tax Free Fund prior periods have been
adjusted to reflect the 5-for-1 stock split, which was effective on
January 3, 2005.
(a) The per share amount does not round to a full penny.
(b) Total returns for periods less than one year are not annualized.
Assumes investment at the net asset value at the beginning of the
period, reinvestment of all distributions and a complete redemption
of the investment at the net asset value at the end of the period.
(c) Ratios are annualized for periods of less than one year.
(d) Expenses reimbursed 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.
(e) The net expense ratios shown above reflect expenses after
reimbursements but exclude the effect of reductions to total
expenses for any expenses offset. Expense offset arrangements reduce
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. The effect of expenses
offset are as follows:
</FN>
SIX MONTHS
ENDED YEAR ENDED JUNE 30,
DECEMBER 31, ----------------------------------------
2007 2007 2006 2005 2004 2003
Near-Term Tax Free Fund
-----------------------
Ratios to Average Net Assets:
Expenses offset (f) -- -- -- -- -- --
<FN>
(f) Effect on the expense ratio was not greater than 0.005%.
</FN>
See accompanying notes to financial statements.
124
FINANCIAL HIGHLIGHTS
TAX FREE FUND
FOR A CAPITAL SHARE OUTSTANDING DURING THE SIX MONTHS ENDED DECEMBER 31, 2007
(UNAUDITED) AND EACH YEAR ENDED JUNE 30,
12/07 2007 2006 2005 2004 2003
NET ASSET VALUE, BEGINNING OF PERIOD $11.98 $11.98 $12.33 $12.08 $12.65 $12.18
- -------------------------------------------------------------------------------------------------------
Investment Activities
Net investment income .24 .50 .52 .44 .43 .42
Net realized and unrealized gain (loss) .14 --(a) (.36) .25 (.58) .48
------- ------- ------- ------- ------- -------
Total from investment activities .38 .50 .16 .69 (.15) .90
------- ------- ------- ------- ------- -------
Distributions from net investment income (.24) (.50) (.51) (.44) (.42) (.43)
- -------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $12.12 $11.98 $11.98 $12.33 $12.08 $12.65
- -------------------------------------------------------------------------------------------------------
TOTAL RETURN (excluding account fees) (b) 3.21% 4.15% 1.30% 5.78% (1.25)% 7.49%
Ratios to Average Net Assets: (c)
Net investment income 3.98% 4.09% 4.01% 3.50% 3.22% 3.34%
Total expenses 1.93% 1.86% 1.69% 1.47% 1.09% 1.22%
Expenses reimbursed (d) (1.23)% (1.16)% (.99)% (.77)% (.39)% (.52)%
Net expenses (e) .70% .70% .70% .70% .70% .70%
Portfolio turnover rate 9% 6% 19% 40% 54% 26%
NET ASSETS, END OF PERIOD (IN THOUSANDS) $17,414 $15,940 $14,992 $22,433 $28,167 $55,283
<FN>
(a) The per share amount does not round to a full penny.
(b) Total returns for periods less than one year are not annualized.
Assumes investment at the net asset value at the beginning of the
period, reinvestment of all distributions and a complete redemption
of the investment at the net asset value at the end of the period.
(c) Ratios are annualized for periods of less than one year.
(d) Expenses reimbursed 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.
(e) The net expense ratios shown above reflect expenses after
reimbursements but exclude the effect of reductions to total
expenses for any expenses offset. Expense offset arrangements reduce
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. The effect of expenses
offset are as follows:
</FN>
SIX MONTHS
ENDED YEAR ENDED JUNE 30,
DECEMBER 31, ----------------------------------------
2007 2007 2006 2005 2004 2003
Tax Free Fund
-------------
Ratios to Average Net Assets:
Expenses offset (f) -- -- -- -- -- --
<FN>
(f) Effect on the expense ratio was not greater than 0.005%.
</FN>
See accompanying notes to financial statements.
125
FINANCIAL HIGHLIGHTS
ALL AMERICAN EQUITY FUND
FOR A CAPITAL SHARE OUTSTANDING DURING THE SIX MONTHS ENDED DECEMBER 31, 2007
(UNAUDITED) AND EACH YEAR ENDED JUNE 30,
12/07 2007 2006 2005 2004 2003
NET ASSET VALUE, BEGINNING OF PERIOD $28.58 $27.59 $24.47 $22.53 $19.15 $21.20
- ------------------------------------------------------------------------------------------------------
Investment Activities
Net investment loss (.09) (.08) (.18) (.02) (.11) (.03)
Net realized and unrealized gain (loss) 3.41 4.94 3.89 1.96 3.49 (2.02)
------- ------- ------- ------- ------- -------
Total from investment activities 3.32 4.86 3.71 1.94 3.38 (2.05)
------- ------- ------- ------- ------- -------
Distributions from net realized gains (3.14) (3.87) (.59) -- -- --
Short-Term Trading Fees * (a) -- -- -- -- -- --
- ------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $28.76 $28.58 $27.59 $24.47 $22.53 $19.15
- ------------------------------------------------------------------------------------------------------
TOTAL RETURN (excluding account fees) (b) 11.78% 19.59% 15.25% 8.61% 17.65% (9.67)%
Ratios to Average Net Assets: (c)
Net investment loss (.72)% (.28)% (.67)% (.09)% (.49)% (.12)%
Total expenses 1.98% 2.01% 2.20% 2.44% 2.31% 2.56%
Expenses reimbursed (d) (.23)% (.26)% (.44)% (.69)% (.56)% (1.06)%
Net expenses (e) 1.75% 1.75% 1.76% 1.75% 1.75% 1.50%
Portfolio turnover rate 96% 223% 369% 262% 96% 119%
NET ASSETS, END OF PERIOD (IN THOUSANDS) $28,905 $23,479 $21,547 $19,253 $19,974 $18,334
<FN>
* Based on average monthly shares outstanding.
(a) The per share amount does not round to a full penny.
(b) Total returns for periods less than one year are not annualized.
Assumes investment at the net asset value at the beginning of the
period, reinvestment of all distributions and a complete redemption
of the investment at the net asset value at the end of the period.
(c) Ratios are annualized for periods of less than one year.
(d) Expenses reimbursed 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.
(e) The net expense ratios shown above reflect expenses after
reimbursements but exclude the effect of reductions to total
expenses for any expenses offset. Expense offset arrangements reduce
total expenses, as discussed in the notes to the financial
statements. These amounts would increase the net investment loss
ratio had such reductions not occurred. The effect of expenses
offset are as follows:
</FN>
SIX MONTHS
ENDED YEAR ENDED JUNE 30,
DECEMBER 31, ----------------------------------------
2007 2007 2006 2005 2004 2003
All American Equity Fund
------------------------
Ratios to Average Net Assets:
Expenses offset --(f) --(f) (0.01)% --(f) --(f) --(f)
<FN>
(f) Effect on the expense ratio was not greater than 0.005%.
</FN>
See accompanying notes to financial statements.
126
FINANCIAL HIGHLIGHTS
CHINA REGION OPPORTUNITY FUND
FOR A CAPITAL SHARE OUTSTANDING DURING THE SIX MONTHS ENDED DECEMBER 31, 2007
(UNAUDITED) AND EACH YEAR ENDED JUNE 30,
12/07 2007 2006 2005 2004 2003
NET ASSET VALUE, BEGINNING OF PERIOD $12.55 $8.71 $6.87 $5.86 $4.17 $4.38
- ------------------------------------------------------------------------------------------------------
Investment Activities
Net investment income (loss) (.02)* --* (.01)* (.06) --* (.02)
Net realized and unrealized gain (loss) 3.39* 3.98* 2.02 1.22 1.69 (.20)
-------- ------- ------- ------- ------- -------
Total from investment activities 3.37 3.98 2.01 1.16 1.69 (.22)
-------- ------- ------- ------- ------- -------
Distributions from net investment income (3.20) (.16) (.19) (.16) (.05) --
Short-Term Trading Fees * .02 .02 .02 .01 .05 .01
- ------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $12.74 $12.55 $8.71 $6.87 $5.86 $4.17
- ------------------------------------------------------------------------------------------------------
TOTAL RETURN (excluding account fees) (a) 28.13% 46.34% 30.03% 19.98% 41.63% (4.79)%
Ratios to Average Net Assets: (b)
Net investment income (loss) (.21)% .02% (.08)% (.54)% .05% (.60)%
Expenses (c) 1.85% 2.02% 2.31% 2.56% 2.25% 3.91%
Portfolio turnover rate 91% 208% 292% 136% 126% 44%
NET ASSETS, END OF PERIOD (IN THOUSANDS) $134,391 $93,805 $67,761 $30,511 $35,090 $12,815
<FN>
* Based on average monthly shares outstanding.
(a) Total returns for periods less than one year are not annualized.
Assumes investment at the net asset value at the beginning of the
period, reinvestment of all distributions and a complete redemption
of the investment at the net asset value at the end of the period.
(b) Ratios are annualized for periods of less than one year.
(c) The expense ratios shown above reflect expenses after reimbursements
but exclude the effect of reductions to total expenses for any
expenses offset. Expense offset arrangements reduce total expenses,
as discussed in the notes to the financial statements. These amounts
would increase the net investment loss ratio, or decrease the net
investment income ratio, had such reductions not occurred. The
effect of expenses offset are as follows:
</FN>
SIX MONTHS
ENDED YEAR ENDED JUNE 30,
DECEMBER 31, ----------------------------------------
2007 2007 2006 2005 2004 2003
China Region Opportunity Fund
-----------------------------
Ratios to Average Net Assets:
Expenses offset --(d) --(d) (0.01)% --(d) --(d) --(d)
<FN>
(d) Effect on the expense ratio was not greater than 0.005%.
</FN>
See accompanying notes to financial statements.
127
FINANCIAL HIGHLIGHTS
GLOBAL RESOURCES FUND
FOR A CAPITAL SHARE OUTSTANDING DURING THE SIX MONTHS ENDED DECEMBER 31, 2007
(UNAUDITED) AND EACH YEAR ENDED JUNE 30,
12/07 2007 2006 2005 2004 2003
NET ASSET VALUE, BEGINNING OF PERIOD $17.70 $17.22 $12.67 $8.39 $5.14 $4.93
- --------------------------------------------------------------------------------------------------------------
Investment Activities
Net investment income (loss) .22 .21 .29 .25 .12 (.05)
Net realized and unrealized
gain 2.67 2.86 5.63 4.67 3.26 .35
---------- ---------- ---------- -------- -------- -------
Total from investment activities 2.89 3.07 5.92 4.92 3.38 .30
---------- ---------- ---------- -------- -------- -------
Distributions
From net investment income (.95) (.88) (.32) (.34) (.13) (.09)
From net realized gains (2.14) (1.71) (1.05) (.30) -- --
---------- ---------- ---------- -------- -------- -------
Total distributions (3.09) (2.59) (1.37) (.64) (.13) (.09)
---------- ---------- ---------- -------- -------- -------
Short-Term Trading Fees * (a) -- -- -- -- -- --
- --------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $17.50 $17.70 $17.22 $12.67 $8.39 $5.14
- --------------------------------------------------------------------------------------------------------------
TOTAL RETURN (excluding account fees) (b) $17.34% 20.94% 48.91% 60.21% 65.73% 6.43%
Ratios to Average Net Assets: (c)
Net investment income (loss) .56% .74% 1.07% .91% .74% (1.38)%
Expenses (d) .89% .95% .96% 1.30% 1.54% 3.75%
Portfolio turnover rate 67% 122% 157% 116% 140% 101%
NET ASSETS, END OF PERIOD
(IN THOUSANDS) $1,694,828 $1,383,250 $1,281,664 $488,183 $135,574 $14,884
<FN>
* Based on average monthly shares outstanding.
(a) The per share amount does not round to a full penny.
(b) Total returns for periods less than one year are not annualized.
Assumes investment at the net asset value at the beginning of the
period, reinvestment of all distributions and a complete redemption
of the investment at the net asset value at the end of the period.
(c) Ratios are annualized for periods of less than one year.
(d) The expense ratios shown above reflect expenses after reimbursements
but exclude the effect of reductions to total expenses for any
expenses offset. Expense offset arrangements reduce total expenses,
as discussed in the notes to the financial statements. These amounts
would increase the net investment loss ratio, or decrease the net
investment income ratio, had such reductions not occurred. The
effect of expenses offset are as follows:
</FN>
SIX MONTHS
ENDED YEAR ENDED JUNE 30,
DECEMBER 31, ----------------------------------------
2007 2007 2006 2005 2004 2003
Global Resources Fund
---------------------
Ratios to Average Net Assets:
Expenses offset (0.01)% (0.01)% (0.01)% --(e) --(e) --(e)
<FN>
(e) Effect on the expense ratio was not greater than 0.005%.
</FN>
See accompanying notes to financial statements.
128
FINANCIAL HIGHLIGHTS
WORLD PRECIOUS MINERALS FUND
FOR A CAPITAL SHARE OUTSTANDING DURING THE SIX MONTHS ENDED DECEMBER 31, 2007
(UNAUDITED) AND EACH YEAR ENDED JUNE 30,
12/07 2007 2006 2005 2004 2003
NET ASSET VALUE, BEGINNING OF PERIOD $28.34 $28.86 $15.50 $13.68 $9.75 $10.43
- -----------------------------------------------------------------------------------------------------------
Investment Activities
Net investment income (loss) (.05)* --* .72 (.22) (.17)* (.05)
Net realized and unrealized gain (loss) 4.56* 3.02 13.62 2.42 5.85 (.52)
---------- -------- -------- -------- -------- --------
Total from investment activities 4.51 3.02 14.34 2.20 5.68 (.57)
---------- -------- -------- -------- -------- --------
Distributions
From net investment income (3.25) (1.52) (.67) (.46) (1.86) (.25)
From net realized gains (3.35) (2.04) (.37) -- -- --
---------- -------- -------- -------- -------- --------
Total distributions (6.60) (3.56) (1.04) (.46) (1.86) (.25)
---------- -------- -------- -------- -------- --------
Short-Term Trading Fees * --(a) .02 .06 .08 .11 .14
- -----------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $26.25 $28.34 $28.86 $15.50 $13.68 $9.75
- -----------------------------------------------------------------------------------------------------------
TOTAL RETURN (excluding account fees) (b) 18.33% 11.48% 96.21% 16.50% 57.42% (4.02)%
Ratios to Average Net Assets: (c)
Net investment income (loss) (.34)% .06% .05% (1.01)% (1.15)% (1.36)%
Expenses (d) .98% .99% 1.13% 1.48% 1.47% 1.92%
Portfolio turnover rate 25% 54% 66% 55% 65% 141%
NET ASSETS, END OF PERIOD
(IN THOUSANDS) $1,005,119 $923,779 $920,249 $268,312 $246,852 $107,212
<FN>
* Based on average monthly shares outstanding.
(a) The per share amount does not round to a full penny.
(b) Total returns for periods less than one year are not annualized.
Assumes investment at the net asset value at the beginning of the
period, reinvestment of all distributions and a complete redemption
of the investment at the net asset value at the end of the period.
(c) Ratios are annualized for periods of less than one year.
(d) The expense ratios shown above reflect expenses after reimbursements
but exclude the effect of reductions to total expenses for any
expenses offset. Expense offset arrangements reduce total expenses,
as discussed in the notes to the financial statements. These amounts
would increase the net investment loss ratio, or decrease the net
investment income ratio, had such reductions not occurred. The
effect of expenses offset are as follows:
</FN>
SIX MONTHS
ENDED YEAR ENDED JUNE 30,
DECEMBER 31, ----------------------------------------
2007 2007 2006 2005 2004 2003
World Precious Minerals Fund
----------------------------
Ratios to Average Net Assets:
Expenses offset (e) -- -- -- -- -- --
<FN>
(e) Effect on the expense ratio was not greater than 0.005%.
</FN>
See accompanying notes to financial statements.
129
FINANCIAL HIGHLIGHTS
GOLD AND PRECIOUS METALS FUND
FOR A CAPITAL SHARE OUTSTANDING DURING THE SIX MONTHS ENDED DECEMBER 31, 2007
(UNAUDITED) AND EACH YEAR ENDED JUNE 30,
12/07 2007 2006 2005 2004 2003
NET ASSET VALUE, BEGINNING OF PERIOD $14.99 $15.48 $7.67 $7.00 $5.18 $5.28
- -------------------------------------------------------------------------------------------------------
Investment Activities
Net investment income (loss) (.03) .05 (.01)* (.11) (.10) (.10)
Net realized and unrealized gain (loss) 3.60 (.56) 7.88 .79 1.91 (.02)
-------- -------- -------- ------- ------- -------
Total from investment activities 3.57 (.51) 7.87 .68 1.81 (.12)
-------- -------- -------- ------- ------- -------
Distributions from net realized gains (2.43) -- (.12) (.05) (.03) --
Short-Term Trading Fees * --(a) .02 .06 .04 .04 .02
- -------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $16.13 $14.99 $15.48 $7.67 $7.00 $5.18
- -------------------------------------------------------------------------------------------------------
TOTAL RETURN (excluding account fees) (b) 25.33% (3.17)% 104.15% 10.19% 35.57% (1.89)%
Ratios to Average Net Assets: (c)
Net investment income (loss) (.27)% .31% (.06)% (1.13)% (1.45)% (1.98)%
Expenses (d) 1.33% 1.29% 1.47% 1.97% 1.93% 2.64%
Portfolio turnover rate 33% 72% 78% 66% 85% 138%
NET ASSETS, END OF PERIOD (IN THOUSANDS) $196,593 $178,762 $208,027 $63,816 $66,732 $45,720
<FN>
* Based on average monthly shares outstanding.
(a) The per share amount does not round to a full penny.
(b) Total returns for periods less than one year are not annualized.
Assumes investment at the net asset value at the beginning of the
period, reinvestment of all distributions and a complete redemption
of the investment at the net asset value at the end of the period.
(c) Ratios are annualized for periods of less than one year.
(d) The expense ratios shown above reflect expenses after reimbursements
but exclude the effect of reductions to total expenses for any
expenses offset. Expense offset arrangements reduce total expenses,
as discussed in the notes to the financial statements. These amounts
would increase the net investment loss ratio, or decrease the net
investment income ratio, had such reductions not occurred. The
effect of expenses offset are as follows:
</FN>
SIX MONTHS
ENDED YEAR ENDED JUNE 30,
DECEMBER 31, ----------------------------------------
2007 2007 2006 2005 2004 2003
Gold and Precious Metals Fund
-----------------------------
Ratios to Average Net Assets:
Expenses offset --(e) (0.01)% --(e) --(e) --(e) --(e)
<FN>
(e) Effect on the expense ratio was not greater than 0.005%.
</FN>
See accompanying notes to financial statements.
130
ADDITIONAL INFORMATION (UNAUDITED)
PROXY VOTING
A description of the policies and procedures that the Funds use to
determine how to vote proxies relating to portfolio securities is
available without charge, upon request, by calling 1-800-US-FUNDS
(1-800-873-8637). It also appears in the Funds' statement of
additional information (Form 485B), which can be found on the SEC's
website at www.sec.gov.
Information regarding how the Funds voted proxies relating to
portfolio securities during the most recent 12-month period ended
June 30 is available without charge, upon request, by calling
1-800-US-FUNDS (1-800-873-8637) or accessing the Funds' Form N-PX
on the SEC's website at www.sec.gov.
AVAILABILITY OF QUARTERLY PORTFOLIO SCHEDULES
The Funds provide complete lists of holdings four times in each
fiscal year, at the quarter-ends. For the second and fourth
quarters, the lists appear in the Funds' semi-annual and annual
reports to shareholders. For the first and third quarters, the
Funds file the lists with the SEC on Form N-Q. Shareholders can
look up the Funds' Forms N-Q on the SEC's website at www.sec.gov.
You may also visit or call the SEC's Public Room in Washington,
D.C. (1-202-942-8090) or send a request plus a duplicating fee to
the SEC, Public Reference Section, Washington, DC 20549-0102 or by
electronic request at the following e-mail address:
publicinfo@sec.gov.
131
NOTES
- ----------------------------------------------------------------
- ----------------------------------------------------------------
- ----------------------------------------------------------------
- ----------------------------------------------------------------
- ----------------------------------------------------------------
- ----------------------------------------------------------------
- ----------------------------------------------------------------
- ----------------------------------------------------------------
- ----------------------------------------------------------------
- ----------------------------------------------------------------
- ----------------------------------------------------------------
- ----------------------------------------------------------------
- ----------------------------------------------------------------
- ----------------------------------------------------------------
- ----------------------------------------------------------------
- ----------------------------------------------------------------
- ----------------------------------------------------------------
- ----------------------------------------------------------------
- ----------------------------------------------------------------
- ----------------------------------------------------------------
- ----------------------------------------------------------------
- ----------------------------------------------------------------
NOTES
- ----------------------------------------------------------------
- ----------------------------------------------------------------
- ----------------------------------------------------------------
- ----------------------------------------------------------------
- ----------------------------------------------------------------
- ----------------------------------------------------------------
- ----------------------------------------------------------------
- ----------------------------------------------------------------
- ----------------------------------------------------------------
- ----------------------------------------------------------------
- ----------------------------------------------------------------
- ----------------------------------------------------------------
- ----------------------------------------------------------------
- ----------------------------------------------------------------
- ----------------------------------------------------------------
- ----------------------------------------------------------------
- ----------------------------------------------------------------
- ----------------------------------------------------------------
- ----------------------------------------------------------------
- ----------------------------------------------------------------
- ----------------------------------------------------------------
- ----------------------------------------------------------------
NOTES
- ----------------------------------------------------------------
- ----------------------------------------------------------------
- ----------------------------------------------------------------
- ----------------------------------------------------------------
- ----------------------------------------------------------------
- ----------------------------------------------------------------
- ----------------------------------------------------------------
- ----------------------------------------------------------------
- ----------------------------------------------------------------
- ----------------------------------------------------------------
- ----------------------------------------------------------------
- ----------------------------------------------------------------
- ----------------------------------------------------------------
- ----------------------------------------------------------------
- ----------------------------------------------------------------
- ----------------------------------------------------------------
- ----------------------------------------------------------------
- ----------------------------------------------------------------
- ----------------------------------------------------------------
- ----------------------------------------------------------------
- ----------------------------------------------------------------
- ----------------------------------------------------------------
NOTES
- ----------------------------------------------------------------
- ----------------------------------------------------------------
- ----------------------------------------------------------------
- ----------------------------------------------------------------
- ----------------------------------------------------------------
- ----------------------------------------------------------------
- ----------------------------------------------------------------
- ----------------------------------------------------------------
- ----------------------------------------------------------------
- ----------------------------------------------------------------
- ----------------------------------------------------------------
- ----------------------------------------------------------------
- ----------------------------------------------------------------
- ----------------------------------------------------------------
- ----------------------------------------------------------------
- ----------------------------------------------------------------
- ----------------------------------------------------------------
- ----------------------------------------------------------------
- ----------------------------------------------------------------
- ----------------------------------------------------------------
- ----------------------------------------------------------------
- ----------------------------------------------------------------
NOTES
- ----------------------------------------------------------------
- ----------------------------------------------------------------
- ----------------------------------------------------------------
- ----------------------------------------------------------------
- ----------------------------------------------------------------
- ----------------------------------------------------------------
- ----------------------------------------------------------------
- ----------------------------------------------------------------
- ----------------------------------------------------------------
- ----------------------------------------------------------------
- ----------------------------------------------------------------
- ----------------------------------------------------------------
- ----------------------------------------------------------------
- ----------------------------------------------------------------
- ----------------------------------------------------------------
- ----------------------------------------------------------------
- ----------------------------------------------------------------
- ----------------------------------------------------------------
- ----------------------------------------------------------------
- ----------------------------------------------------------------
- ----------------------------------------------------------------
- ----------------------------------------------------------------
NOTES
- ----------------------------------------------------------------
- ----------------------------------------------------------------
- ----------------------------------------------------------------
- ----------------------------------------------------------------
- ----------------------------------------------------------------
- ----------------------------------------------------------------
- ----------------------------------------------------------------
- ----------------------------------------------------------------
- ----------------------------------------------------------------
- ----------------------------------------------------------------
- ----------------------------------------------------------------
- ----------------------------------------------------------------
- ----------------------------------------------------------------
- ----------------------------------------------------------------
- ----------------------------------------------------------------
- ----------------------------------------------------------------
- ----------------------------------------------------------------
- ----------------------------------------------------------------
- ----------------------------------------------------------------
- ----------------------------------------------------------------
- ----------------------------------------------------------------
- ----------------------------------------------------------------
NOTES
- ----------------------------------------------------------------
- ----------------------------------------------------------------
- ----------------------------------------------------------------
- ----------------------------------------------------------------
- ----------------------------------------------------------------
- ----------------------------------------------------------------
- ----------------------------------------------------------------
- ----------------------------------------------------------------
- ----------------------------------------------------------------
- ----------------------------------------------------------------
- ----------------------------------------------------------------
- ----------------------------------------------------------------
- ----------------------------------------------------------------
- ----------------------------------------------------------------
- ----------------------------------------------------------------
- ----------------------------------------------------------------
- ----------------------------------------------------------------
- ----------------------------------------------------------------
- ----------------------------------------------------------------
- ----------------------------------------------------------------
- ----------------------------------------------------------------
- ----------------------------------------------------------------
ITEM 2. CODE OF ETHICS.
Required only in annual report on Form N-CSR.
ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT.
Required only in annual report on Form N-CSR.
ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.
Required only in annual report on Form N-CSR.
ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS.
Required only in annual report on Form N-CSR.
ITEM 6. SCHEDULE OF INVESTMENTS.
Not applicable. The complete schedule of investments is included in Item 1 of
this Form N-CSR.
ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END
MANAGEMENT INVESTMENT COMPANIES.
Not applicable.
ITEM 8. PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES.
Not applicable.
ITEM 9. PURCHASE OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT
COMPANY AND AFFILIATED PURCHASERS.
Not applicable.
ITEM 10. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.
Not applicable.
ITEM 11. CONTROLS AND PROCEDURES.
(a) The registrant's president and treasurer have determined that the
registrant's disclosure controls and procedures are effective based on
their evaluation of the disclosure controls and procedures as of a date
within 90 days of the filing date of this report.
(b) There was no change in the registrant's internal control over financial
reporting that occurred in the registrant's second fiscal quarter of
the period covered by this report that has materially affected, or is
reasonably likely to materially affect, the registrant's internal
control over financial reporting.
ITEM 12. EXHIBITS.
(a)(1) Required only in annual report on Form N-CSR.
(a)(2) Certifications of principal executive officer and principal financial
officer pursuant to section 302 of the Sarbanes-Oxley Act of 2002.
Certifications of principal executive officer and principal financial
officer pursuant to section 906 of the Sarbanes-Oxley Act of 2002.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, the registrant has duly caused this report to
be signed on its behalf by the undersigned, thereunto duly authorized.
U.S. GLOBAL INVESTORS FUNDS
By: /s/ Frank E. Holmes
---------------------------------------------------------
Frank E. Holmes
President, Chief Executive Officer
Date: February 28, 2008
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, this report has been signed below by the
following persons on behalf of the registrant and in the capacities and on the
dates indicated.
By: /s/ Frank E. Holmes
----------------------------------------------------------
Frank E. Holmes
President, Chief Executive Officer
Date: February 28, 2008
By: /s/ Catherine A. Rademacher
--------------------------------------------------------
Catherine A. Rademacher
Treasurer
Date: February 28, 2008
EXHIBIT INDEX
(a)(1) Required only in annual report on Form N-CSR.
(a)(2) Certifications of principal executive officer and principal financial
officer pursuant to Rule 30a-2(a) under the Investment Company Act of
1940 (17CFR 270.30a-2(a)), and Section 302 of the Sarbanes-Oxley Act
of 2002
(b) Certifications of principal executive officer and principal financial
officer pursuant to Rule 30a-2(b) under the Investment Company Act of
1940 (17 CFR 270.30a-2(b)) and Section 906 of the Sarbanes-Oxley Act
of 2002