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: DECEMBER 31, 2010
Date of reporting period: JUNE 30, 2010
ITEM 1. REPORTS TO STOCKHOLDERS.
U.S. GLOBAL INVESTORS FUNDS
SEMI-ANNUAL REPORT
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JUNE 30, 2010
U.S. GLOBAL INVESTORS FUNDS
SEMI-ANNUAL REPORT
JUNE 30, 2010
(UNAUDITED)
TABLE OF CONTENTS
LETTER TO SHAREHOLDERS 1
MANAGEMENT TEAMS' PERSPECTIVES 7
EXPENSE EXAMPLE 61
PORTFOLIOS OF INVESTMENTS 64
NOTES TO PORTFOLIOS OF INVESTMENTS 130
STATEMENTS OF ASSETS AND LIABILITIES 144
STATEMENTS OF OPERATIONS 150
STATEMENTS OF CHANGES IN NET ASSETS 156
NOTES TO FINANCIAL STATEMENTS 165
FINANCIAL HIGHLIGHTS 185
ADDITIONAL INFORMATION 198
PRIVACY POLICY
NASDAQ SYMBOLS
U.S. GLOBAL INVESTORS FUNDS
- ---------------------------
INVESTOR CLASS
- --------------
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
HOLMES GROWTH FUND ACBGX
GLOBAL MEGATRENDS FUND MEGAX
GLOBAL RESOURCES FUND PSPFX
WORLD PRECIOUS MINERALS FUND UNWPX
GOLD AND PRECIOUS METALS FUND USERX
EASTERN EUROPEAN FUND EUROX
GLOBAL EMERGING MARKETS FUND GEMFX
CHINA REGION FUND USCOX
INSTITUTIONAL CLASS
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GLOBAL MEGATRENDS FUND MEGIX
GLOBAL RESOURCES FUND PIPFX
WORLD PRECIOUS MINERALS FUND UNWIX
P.O. Box 659405
San Antonio, Texas 78265-9604
Tel 1.800.US.FUNDS
Fax 1.210.308.1217
[USGI Logo] www.usfunds.com
U.S. GLOBAL INVESTORS FUNDS
DEAR FELLOW SHAREHOLDER:
A New York Times columnist is calling for another
depression, the "double-dip" recession debate is
escalating, and one well-known technical analyst is
predicting a 90 percent plunge for the Dow Jones
Industrial Average. [PHOTO]
Markets are certainly volatile these days, and it
doesn't help that ambitious doom-and-
gloomers are working overtime to think up the worst worst-case
scenarios. In this environment, it's not surprising to see so many
investors are confused and afraid.
We don't share the despair. I've lived through many market cycles
and have learned that there are always opportunities in global
markets, and we're working harder to find them. As active managers,
we use sophisticated investment processes, and we play to win.
On the macro side, we believe in cycles and seasonal patterns, and
that government policies are precursors to change, both domestically
and internationally. We also believe that each asset class has its
own DNA when it comes to volatility. You can see this in the
standard deviation chart, which shows volatility over the past 10
years for gold and gold equities compared to key large-cap and
small-cap stock indexes.
[Standard Deviation Graph]
STANDARD DEVIATION (AS OF 6/30/2010) BASED ON 10-YEAR DATA
- ---------------------------------------------------------------------
INDEX ROLLING 1 YEAR
- ---------------------------------------------------------------------
NYSE Arca Gold BUGS Index (HUI) 42.3%
- ---------------------------------------------------------------------
Russell 2000 Index (RTY) 23.2%
- ---------------------------------------------------------------------
S&P 500 Index (SPX) 19.6%
- ---------------------------------------------------------------------
Gold Bullion 14.8%
- ---------------------------------------------------------------------
For gold, the volatility over any 12 months for the past decade is
plus or minus 14.8 percent and for gold stocks (as measured by the
HUI), it is about three times greater. Investors should look at
these numbers as "normal" behavior. It may come as a surprise that
both the S&P 500 and the Russell 2000 have been considerably more
volatile than bullion.
If you don't pay attention to volatility, you risk being herded into
buying at the top and then getting upset and selling at a loss after
a correction. When you understand volatility, it's easy to see how
much risk you have if you're leveraged. If you're not leveraged, you
have the flexibility to be able to buy on down days.
1
U.S. GLOBAL INVESTORS FUND
It's really important for people to understand that there are peaks
and troughs in life and in markets, and you have to be humble when
you're at the peak and hopeful when you're in the trough.
The image below is a familiar one to many investors - it shows the
sequence of emotions during a market cycle. It's increasingly
positive on the way up to the peak, and then progressively negative
on the way down to the trough before starting back up again.
[The Cycle of Market Emotions Graph]
The irony, of course, is that investors feel happiest when they are
at the highest market peril, and they want to jump out a window when
their potential upside is the greatest.
These peaks and troughs don't correspond just to markets or to the
good and bad events in your life - they're also how you feel inside
and how you respond to outside events. How you feel depends on how
you see your situation. Do you have hope and confidence, or are you
paralyzed by negativity and despair?
I believe the key is to separate the events in your life from how
you feel about yourself as a person. If you don't, your emotions can
take control and, as an investor, you end up buying at the top and
selling at the bottom. When this happens, of course, problems are
compounded in a downward spiral.
Not long ago, I had the chance to listen to a prominent MIT finance
professor talk about how market participants make their decisions,
and I came away thinking that his ideas validate the approach that
we've been using for years.
2
U.S. GLOBAL INVESTORS FUNDS
Professor Andrew Lo has developed what he calls the "adaptive
markets hypothesis" (AMH) as a more sophisticated framework than the
long-standing "efficient markets hypothesis" (EMH).
I won't go into a lot of detail, but the EMH assumes that all market
participants act rationally at all times, and that all available
information is immediately reflected in market prices.
[SWOT Graph]
In Lo's AMH, market participants are not always perfectly rational -
they often make bad decisions. They learn from those bad decisions and,
driven by competition, the survivors constantly innovate. Those who
don't adapt don't last.
At U.S. Global, we have long viewed markets as "complex adaptive
systems" made up of many moving parts interconnected across a global
network, and with the ability to learn from experiences and change
accordingly.
In our case, we use a matrix of top-down macro models that take into
account political, economic and currency trends, and pair that up with
bottom-up micro stock selection models to determine weighting in
countries, sectors and individual securities. We believe government
policies are a precursor to change, and as a result, we keep track of
the fiscal and monetary policies of the G-7 and what we call the "E-7" -
the world's largest developing nations by population.
We also focus on historical and socioeconomic cycles, and we apply both
statistical and fundamental models to identify companies with superior
growth and value metrics. We overlay these explicit knowledge models
with the tacit knowledge obtained by domestic and global travel for
first-hand observation of local and geopolitical conditions, as well as
specific companies and projects. This is
3
U.S. GLOBAL INVESTORS FUNDS
part of our strategy as we seek to create alpha for our fund
shareholders.
[Government Policy Graph]
During his San Antonio visit, Professor Lo contrasted "fear and
greed" with "rational thinking." The former is reactive and
emotional, while the latter is measured and opportunistic. We use
oscillators and other tools to help us determine when fear or greed
may be taking hold in a market.
I'm a big believer in globalization, urbanization and major
technological breakthroughs as key drivers of change in the world.
These factors can have an enormous impact on infrastructure creation
around the world, which in turn greatly affects commodities demand.
Back in the early 1970s, when gold resumed free-trading status in
the U.S., China and India were both inward-looking and had very
small economic footprints - now their economic engines are lifting
tens of millions of people into middle-class prosperity each year.
Most of the middle class are urban dwellers, and they are far more
productive than their rural counterparts. The urban GDP growth
chart, based on research and analysis by McKinsey, shows how that
productivity pays off over time - the real GDP per capita for urban
Chinese is expected to increase fourfold and in India more than
threefold over the two decades ending in 2025.
4
U.S. GLOBAL INVESTORS FUNDS
[Urban GDP Growth to Outpace Rural Graph]
Global markets present tremendous opportunities to those who are
able to sort out what's meaningful from the background noise. That
means going where others don't to see promising projects. That means
asking the right questions to get the best information out of
company management. And it means constantly fine-tuning our
investment processes to ferret out market mispricing and other
inefficiencies and moving quickly to capitalize on them.
"I'd be a bum on the street with a tin cup if the markets were
always efficient," Warren Buffett once said.
We believe actions should be shaped by knowledge, beliefs and
values, not emotions. When investors understand volatility, they can
manage market movements better and make better decisions. They can
steer their financial ship with confidence, rather than sitting
powerless and being pushed around by the market's powerful tides.
5
U.S. GLOBAL INVESTORS FUNDS
Thank you for trusting us with your investment - we appreciate the
loyalty. Our mission is "to maximize the growth, protection and
service of our shareholders' wealth with the highest ethical
standards." We take this mission seriously, and we are committed to
building on your trust during these challenging times.
Sincerely,
/s/ Frank Holmes
Frank Holmes
CEO and Chief Investment Officer
U.S. Global Investors, Inc.
The Dow Jones Industrial Average is a price-weighted average of 30
blue chip stocks that are generally leaders in their industry.
Standard deviation is a measure of the dispersion of a set of data
from its mean. The more spread apart the data, the higher the
deviation. Standard deviation is also known as historical
volatility. The NYSE Arca Gold BUGS (Basket of Unhedged Gold Stocks)
Index (HUI) is a modified equal dollar weighted index of companies
involved in gold mining. The HUI Index was designed to provide
significant exposure to near term movements in gold prices by
including companies that do not hedge their gold production beyond
1.5 years. The Russell 2000 Index is a U.S. equity index measuring
the performance of the 2,000 smallest companies in the Russell 3000.
The Russell 3000 Index consists of the 3,000 largest U.S. companies
as determined by total market capitalization. The S&P 500 Stock
Index is a widely recognized capitalization-weighted index of 500
common stock prices in U.S. companies. Alpha is a measure of
performance on a risk-adjusted basis. Alpha takes the volatility
(price risk) of a mutual fund and compares its risk-adjusted
performance to a benchmark index. The excess return of the fund
relative to the return of the benchmark index is a fund's alpha.
6
MONEY MARKET FUNDS
MANAGEMENT TEAM'S PERSPECTIVE
INTRODUCTION
The U.S. Treasury Securities Cash Fund (USTXX) 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 (UGSXX) seeks to achieve a consistently high yield with
safety of principal.
PERFORMANCE
U.S. TREASURY SECURITIES CASH FUND As of June 30, 2010
7-Day Yield 0.01%
---------------------------------------------------------------
7-Day Effective Yield 0.01%
---------------------------------------------------------------
Weighted Average Days to Maturity 3
U.S. GOVERNMENT SECURITIES SAVINGS FUND As of June 30, 2010
7-Day Yield 0.01%
---------------------------------------------------------------
7-Day Effective Yield 0.01%
---------------------------------------------------------------
Weighted Average Days to Maturity 21
An investment in either the U.S. Treasury Securities Cash Fund or
the U.S. Government Securities Savings Fund is neither insured nor
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 these funds.
Pursuant to a voluntary arrangement, the Adviser has agreed to limit
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. In addition, the
yields reported above include the effects of the Adviser's voluntary
waiver of fees and/or reimbursement of expenses to maintain a
minimum net yield for the funds. The Adviser can modify or terminate
these arrangements at any time.
THE SIX-MONTH PERIOD IN REVIEW - ECONOMIC AND POLITICAL ISSUES THAT
AFFECTED THE FUNDS
The economic recovery that began in mid-2009 continued into the
first quarter of 2010. Many cyclical indicators reached multi-year
highs, such as the ISM manufacturing composite index,(1) which hit
the highest level since 2004. The first taste of sustained
employment growth since 2007 also
7
MONEY MARKET FUNDS
occurred, and retail sales were surprisingly strong as tax refunds
and government stimulus paved the way.
During the second quarter, the economic recovery's momentum began to
slow. Along with a dip in cyclical indicators, China began policies
to slow its economy and the European financial crisis fundamentally
changed how the global economic recovery is perceived.
It is now clear that fiscal austerity is in vogue and could be a
significant drag on growth in the U.S. and Europe. Spending cuts and
higher taxes could transform a stimulative fiscal tailwind into a
stiff headwind.
Inflation remains contained and deflation is now more feared. CPI(2)
rose a very modest 1.1 percent year over year through June and has
been declining all year. The Federal Reserve left monetary policy
unchanged and continues to keep all policy options open.
Yields on the three-month Treasury bill rose 13 basis points to 0.18
percent, while yields on the six-month bills rose 3 basis points to
0.22 percent. One-year agency discount note yields were little
changed, falling 1 basis point to 0.44 percent. The market was still
influenced by periodic bouts of risk aversion, with investors at
times seeking to own short-term Treasury securities at almost any
cost.
INVESTMENT HIGHLIGHTS
The U.S. Treasury Securities Cash Fund performed in line with the
Lipper treasury money market funds for the six months ending June
30, 2010, returning 0.00 percent, the same as the peer group. The
U.S. Government Securities Savings Fund also performed in line with
the Lipper government-only money market funds for the year,
returning 0.00 percent versus 0.01 percent for the peer group.
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 24 days. The fund
took advantage of higher yields by selectively extending its ladder,
but overall it was a very difficult environment for money market
fund investors over the past six months.
The U.S. Treasury Securities Cash Fund followed a similar approach,
averaging a weighted average maturity of 18 days over the period.
The U.S. Treasury Securities Cash Fund took advantage of relatively
high repurchase rates relative to Treasuries, which kept the
weighted average maturity lower than the U.S. Government Securities
Savings Fund over the period.
8
MONEY MARKET FUNDS
CURRENT OUTLOOK
The Fed continues to emphasize that it will keep interest rates low
for an extended period, and recent developments have reinforced this
position. If the economy were to slow too much, additional stimulus
would be considered, which represents a substantial shift in market
expectations in just the past few months.
(1)The ISM manufacturing composite index is a diffusion index
calculated from five of the eight sub-components of a monthly
survey of purchasing managers at roughly 300 manufacturing firms
from 21 industries in all 50 states.
(2)The Consumer Price Index (CPI) is one of the most widely
recognized price measures for tracking the price of a market
basket of goods and services purchased by individuals. The
weights of components are based on consumer spending patterns.
9
TAX FREE FUNDS
MANAGEMENT TEAM'S PERSPECTIVE
INTRODUCTION
The Near-Term Tax Free Fund (NEARX) and the Tax Free Fund (USUTX)
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]
Barclays Capital
Near-Term 3-Year Municipal
Date Tax Free Fund Bond Index
---- ------------- ----------
06/30/00 $ 10,000.00 $ 10,000.00
07/31/00 10,092.14 10,081.04
08/31/00 10,180.71 10,157.21
09/29/00 10,175.85 10,160.14
10/31/00 10,241.50 10,217.75
11/30/00 10,286.80 10,258.76
12/31/00 10,438.80 10,373.01
01/31/01 10,547.78 10,530.45
02/28/01 10,570.64 10,571.64
03/30/01 10,639.42 10,645.95
04/30/01 10,594.37 10,630.40
05/31/01 10,680.73 10,727.23
06/30/01 10,721.05 10,775.00
07/31/01 10,817.06 10,863.33
08/31/01 10,932.61 10,974.86
09/30/01 10,963.16 11,030.86
10/31/01 11,040.66 11,102.60
11/30/01 10,969.00 11,067.15
12/31/01 10,920.81 11,056.59
01/31/02 11,067.15 11,197.00
02/28/02 11,160.11 11,280.98
03/31/02 10,996.06 11,112.90
04/30/02 11,189.59 11,276.26
05/31/02 11,243.30 11,341.66
06/30/02 11,332.12 11,439.20
07/31/02 11,427.31 11,528.42
08/31/02 11,531.30 11,602.20
09/30/02 11,684.66 11,693.86
10/31/02 11,577.17 11,629.54
11/30/02 11,548.22 11,633.03
12/31/02 11,712.21 11,800.55
01/31/03 11,729.78 11,838.31
02/28/03 11,837.69 11,914.08
03/31/03 11,835.32 11,899.78
04/30/03 11,882.66 11,931.91
05/31/03 12,047.83 12,023.78
06/30/03 12,008.03 12,004.55
07/31/03 11,773.87 11,896.51
08/31/03 11,855.11 11,957.18
09/30/03 12,079.17 12,136.54
10/31/03 12,021.19 12,079.49
11/30/03 12,057.25 12,091.57
12/31/03 12,098.65 12,116.97
01/31/04 12,146.77 12,159.37
02/29/04 12,258.46 12,262.73
03/31/04 12,223.34 12,229.62
04/30/04 12,062.74 12,106.10
05/31/04 12,011.97 12,058.89
06/30/04 12,031.87 12,080.59
07/31/04 12,114.89 12,168.78
08/31/04 12,242.10 12,296.55
09/30/04 12,269.03 12,310.08
10/31/04 12,297.25 12,344.55
11/30/04 12,246.83 12,285.29
12/31/04 12,310.51 12,333.21
01/31/05 12,327.75 12,317.17
02/28/05 12,299.40 12,280.22
03/31/05 12,214.53 12,239.70
04/30/05 12,298.81 12,302.12
05/31/05 12,333.25 12,324.26
06/30/05 12,361.61 12,387.12
07/31/05 12,333.18 12,358.63
08/31/05 12,367.71 12,399.41
09/30/05 12,396.16 12,405.61
10/31/05 12,367.65 12,387.00
11/30/05 12,402.28 12,398.15
12/31/05 12,431.13 12,441.54
01/31/06 12,407.51 12,468.92
02/28/06 12,442.25 12,478.89
03/31/06 12,418.61 12,456.43
04/30/06 12,442.20 12,477.60
05/31/06 12,483.26 12,521.28
06/30/06 12,454.55 12,498.74
07/31/06 12,547.96 12,583.73
08/31/06 12,642.07 12,683.14
09/30/06 12,736.89 12,741.48
10/31/06 12,778.92 12,779.71
11/30/06 12,814.70 12,824.44
12/31/06 12,790.35 12,821.87
01/31/07 12,766.44 12,821.87
02/28/07 12,922.28 12,909.06
03/31/07 12,904.26 12,946.50
04/30/07 12,940.44 12,972.39
05/31/07 12,916.26 12,971.09
06/30/07 12,892.01 12,981.47
07/31/07 12,989.31 13,064.55
08/31/07 13,092.98 13,137.71
09/30/07 13,190.87 13,228.36
10/31/07 13,233.82 13,291.86
11/30/07 13,332.31 13,394.21
12/31/07 13,369.36 13,462.52
01/31/08 13,592.19 13,750.61
02/28/08 13,319.10 13,567.73
03/31/08 13,543.16 13,764.46
04/30/08 13,518.20 13,749.32
05/31/08 13,549.49 13,797.44
06/30/08 13,461.67 13,706.38
07/31/08 13,562.32 13,873.60
08/31/08 13,720.02 14,004.01
09/30/08 13,505.06 13,835.96
10/31/08 13,479.69 13,859.48
11/30/08 13,575.08 14,078.46
12/31/08 13,804.51 14,207.99
01/31/09 14,092.10 14,473.68
02/28/09 13,989.61 14,447.62
03/31/09 14,092.28 14,538.64
04/30/09 14,118.02 14,582.26
05/31/09 14,150.28 14,601.22
06/30/09 14,117.98 14,627.50
07/31/09 14,279.88 14,797.18
08/31/09 14,312.34 14,783.86
09/30/09 14,474.98 14,909.52
10/31/09 14,370.66 14,875.23
11/30/09 14,527.43 15,010.59
12/31/09 14,494.72 15,028.61
01/31/10 14,593.09 15,084.21
02/28/10 14,685.12 15,140.02
03/31/10 14,586.33 15,071.89
04/30/10 14,685.33 15,145.75
05/31/10 14,777.93 15,209.36
06/30/10 14,811.07 15,253.47
AVERAGE ANNUAL PERFORMANCE For the Periods Ended
June 30, 2010
Six Month One Year Five Year Ten Year
Near-Term Tax Free Fund 2.18% 4.91% 3.68% 4.00%
----------------------------------------------------------------------
Barclays Capital 3-Year
Municipal Bond Index 1.51% 4.30% 4.25% 4.31%
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. Returns for periods less than one year are not annualized.
The Barclays Capital 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
reflect no deduction for fees, expenses or taxes.
Pursuant to a voluntary arrangement, the Adviser has agreed to limit
total fund operating expenses (exclusive of acquired fund fees and
expenses, extraordinary expenses, taxes, brokerage commissions and
interest, and advisory fee performance adjustments, if any) to not
exceed 0.45%. The Adviser can modify or terminate this arrangement at
any time.
10
TAX FREE FUNDS
TAX FREE FUND
[Tax Free Fund Graph]
Barclays Capital
10-Year Municipal
Date Tax Free Fund Bond Index
---- ------------- ----------
06/30/00 $ 10,000.00 $ 10,000.00
07/31/00 10,143.23 10,138.73
08/31/00 10,299.35 10,295.52
09/29/00 10,222.31 10,248.39
10/31/00 10,353.86 10,353.24
11/30/00 10,437.76 10,409.03
12/31/00 10,717.30 10,654.32
01/31/01 10,815.30 10,791.86
02/28/01 10,833.36 10,809.96
03/30/01 10,928.47 10,902.13
04/30/01 10,786.63 10,767.07
05/31/01 10,897.97 10,884.27
06/30/01 10,981.30 10,949.00
07/31/01 11,139.36 11,099.88
08/31/01 11,326.55 11,288.01
09/30/01 11,276.58 11,273.22
10/31/01 11,411.16 11,412.37
11/30/01 11,271.43 11,264.65
12/31/01 11,125.63 11,146.55
01/31/02 11,325.44 11,357.22
02/28/02 11,472.31 11,519.63
03/31/02 11,219.25 11,282.32
04/30/02 11,470.36 11,544.07
05/31/02 11,529.33 11,598.33
06/30/02 11,660.09 11,742.15
07/31/02 11,798.90 11,898.32
08/31/02 11,920.92 12,053.00
09/30/02 12,161.84 12,341.06
10/31/02 11,961.72 12,116.46
11/30/02 11,890.91 12,017.10
12/31/02 12,127.36 12,280.28
01/31/03 12,088.30 12,215.19
02/28/03 12,242.83 12,426.51
03/31/03 12,230.09 12,432.73
04/30/03 12,310.70 12,524.73
05/31/03 12,599.50 12,882.94
06/30/03 12,533.29 12,821.10
07/31/03 12,043.85 12,282.61
08/31/03 12,146.20 12,388.24
09/30/03 12,480.00 12,805.73
10/31/03 12,405.06 12,708.40
11/30/03 12,495.24 12,845.65
12/31/03 12,574.59 12,981.82
01/31/04 12,649.15 13,036.34
02/29/04 12,831.01 13,265.78
03/31/04 12,768.22 13,190.17
04/30/04 12,466.53 12,826.12
05/31/04 12,428.85 12,833.81
06/30/04 12,376.77 12,876.17
07/31/04 12,489.47 13,052.57
08/31/04 12,667.15 13,338.42
09/30/04 12,719.68 13,409.11
10/31/04 12,806.40 13,516.39
11/30/04 12,699.77 13,363.65
12/31/04 12,843.07 13,521.34
01/31/05 12,932.65 13,636.27
02/28/05 12,867.88 13,550.37
03/31/05 12,787.19 13,431.12
04/30/05 12,961.76 13,691.69
05/31/05 13,037.69 13,783.42
06/30/05 13,091.66 13,863.36
07/31/05 13,043.88 13,745.53
08/31/05 13,161.01 13,913.22
09/30/05 13,084.10 13,788.00
10/31/05 13,019.80 13,683.21
11/30/05 13,081.08 13,768.05
12/31/05 13,199.90 13,893.34
01/31/06 13,233.50 13,937.80
02/28/06 13,336.80 14,020.03
03/31/06 13,254.95 13,875.62
04/30/06 13,257.14 13,850.65
05/31/06 13,304.41 13,944.83
06/30/06 13,262.49 13,882.08
07/31/06 13,410.83 14,066.71
08/31/06 13,590.83 14,307.25
09/30/06 13,667.76 14,411.70
10/31/06 13,739.34 14,498.17
11/30/06 13,829.14 14,612.70
12/31/06 13,795.35 14,544.02
01/31/07 13,755.81 14,478.57
02/28/07 13,922.51 14,682.72
03/31/07 13,894.08 14,653.36
04/30/07 13,927.18 14,700.25
05/31/07 13,872.21 14,623.81
06/30/07 13,812.44 14,544.84
07/31/07 13,905.83 14,675.74
08/31/07 13,882.70 14,712.43
09/30/07 14,088.15 14,909.58
10/31/07 14,127.74 14,961.76
11/30/07 14,207.20 15,127.83
12/31/07 14,255.26 15,170.19
01/31/08 14,465.79 15,478.15
02/28/08 13,918.31 14,835.80
03/31/08 14,274.55 15,217.08
04/30/08 14,401.62 15,306.87
05/31/08 14,458.80 15,383.40
06/30/08 14,301.07 15,223.41
07/31/08 14,382.58 15,340.63
08/31/08 14,532.90 15,555.40
09/30/08 14,011.89 14,990.74
10/31/08 14,015.52 14,866.32
11/30/08 14,047.10 15,062.55
12/31/08 14,332.18 15,398.45
01/31/09 14,744.29 16,122.17
02/28/09 14,738.16 15,999.65
03/31/09 14,744.31 15,924.45
04/30/09 14,923.37 16,215.87
05/31/09 14,979.10 16,303.43
06/30/09 14,828.81 16,073.55
07/31/09 15,065.57 16,422.35
08/31/09 15,225.60 16,607.92
09/30/09 15,608.13 17,134.39
10/31/09 15,352.81 16,712.89
11/30/09 15,476.44 16,971.94
12/31/09 15,482.77 16,917.63
01/31/10 15,538.61 17,046.20
02/28/10 15,668.42 17,279.73
03/31/10 15,613.55 17,153.59
04/30/10 15,827.45 17,381.73
05/31/10 15,923.80 17,559.03
06/30/10 15,934.11 17,613.46
AVERAGE ANNUAL PERFORMANCE For the Periods Ended
June 30, 2010
Six Month One Year Five Year Ten Year
Tax Free Fund 2.92% 7.45% 4.01% 4.77%
----------------------------------------------------------------------
Barclays Capital 10-Year
Municipal Bond Index 4.12% 9.58% 4.90% 5.82%
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. Returns for periods less than one year are not annualized.
The Barclays Capital 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 reflect no deduction for fees, expenses or taxes.
Pursuant to a voluntary arrangement, the Adviser has agreed to limit
total fund operating expenses (exclusive of acquired fund fees and
expenses, extraordinary expenses, taxes, brokerage commissions and
interest, and advisory fee performance adjustments, if any) to not
exceed 0.70%. The Adviser can modify or terminate this arrangement at
any time.
Please visit our website at www.usfunds.com for updated performance
information for different time periods.
THE SIX-MONTH PERIOD IN REVIEW - ECONOMIC AND POLITICAL ISSUES THAT
AFFECTED THE FUNDS
The municipal bond market exhibited solid performance over the past
six months as the Barclays Capital Municipal Bond Index(1) rose 3.31
percent.
11
TAX FREE FUNDS
The theme of low quality and long duration that outperformed in 2009
carried over into the first six months of 2010. For example, the
Barclay's BBB Index appreciated 5.28 percent while its AAA-rated
Index rose about 2.32 percent. The funds' conservative credit
profile has hampered relative performance so far in 2010.
From a yield-curve prospective, the long end of the curve
significantly outperformed. Long-term municipals (greater than 22
years to maturity) rose 4.49 percent, while the 3- and 10-year
segments of the curve rose 1.51 and 4.12 percent, respectively.
Revenue-backed municipals outperformed general-obligation bonds in
an environment in which lower-quality bonds generally outperformed.
Low-quality bonds within the revenue-backed universe that
outperformed included hospitals and housing-backed issues, which
rose 4.91 and 4.35 percent, respectively. High-yield bonds rose 7.29
percent, with "junk" bonds more than doubling the performance of the
overall market.
In specialty state trading, Puerto Rico and California outperformed,
while Ohio, Connecticut and Illinois underperformed.
The Federal Reserve has stayed the course and continues to pledge to
keep interest rates low for an extended period of time.
INVESTMENT HIGHLIGHTS
Over the six months ended June 30, 2010, the Near-Term Tax Free Fund
posted a 2.18 percent return, while the Tax Free Fund returned 2.92
percent.
The Near-Term Tax Free Fund outperformed its benchmark, the Barclays
Capital 3-Year Municipal Bond Index, which returned 1.51 percent.
The Tax Free Fund trailed the performance of its benchmark, the
Barclays Capital 10-Year Municipal Bond Index, which returned 4.12
percent.
The Near-Term Tax Free Fund outperformed its respective Lipper peer
group over the six-month period, while the Tax Free Fund trailed its
respective Lipper peer group by a modest 10 basis points. The
performance difference for the funds was primarily driven by fund
credit and maturity preferences relative to their benchmarks and
peer groups. The conservative credit profile of both funds hampered
performance as lower-quality securities outperformed. From a
maturity perspective, the Near-Term Tax Free Fund benefitted from a
slightly longer maturity profile than its benchmark, while the Tax
Free Fund maintained a lower interest rate risk profile.
12
TAX FREE FUNDS
STRENGTHS
* The Tax Free Fund maintained significant exposure to
hospital-backed municipals, which outperformed.
* The Near-Term Tax Free Fund's laddered maturity approach was
beneficial as longer maturities outperformed.
WEAKNESSES
* Both funds maintained a conservative credit profile, which
negatively impacted performance relative to their benchmarks and
peer groups.
* Both funds had little to no exposure in the best-performing
sectors of the market, including tobacco, housing and high-yield.
* The funds had limited exposure to the longest maturities, which
fared best during the past six months.
CURRENT OUTLOOK
OPPORTUNITIES
* California state general obligation bonds were trading at
historically very cheap levels. If the state can reach a sensible
solution to its budget problems, spreads should tighten significantly,
which would result in a decrease in yields and an increase in market
values.
* Illinois, Florida and Arizona are other areas that appear
attractive as sentiment appears to have become too negative,
raising the chances of a reversal.
THREATS
* Continued outperformance of low-quality bonds is the most
significant threat on a relative basis.
* When the Fed reverses its monetary policy stance and begins to
raise interest rates, the macro environment could become more
difficult.
(1)The Barclays Capital Municipal Bond Index is an unmanaged index
representative of the tax-exempt bond market.
13
TAX FREE FUNDS
NEAR-TERM TAX FREE FUND
MUNICIPAL BOND RATINGS June 30, 2010
(BASED ON TOTAL MUNICIPAL BONDS)
[Pie Chart]
AA 44.0%
AAA 31.3%
A 23.4%
Not Rated 1.3%
TAX FREE FUND
MUNICIPAL BOND RATINGS June 30, 2010
(BASED ON TOTAL MUNICIPAL BONDS)
[Pie Chart]
AAA 35.6%
AA 33.6%
A 24.2%
BBB 4.7%
Not Rated 1.2%
B 0.7%
14
ALL AMERICAN EQUITY FUND
MANAGEMENT TEAM'S PERSPECTIVE
INTRODUCTION
The principal objective of the All American Equity Fund (GBTFX) is
to seek long-term 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,
including stocks with meaningful dividend yields.
PERFORMANCE GRAPH
ALL AMERICAN EQUITY FUND
[All American Equity Fund Graph]
All American S&P
Date Equity Fund 500 Index
---- ----------- ---------
06/30/00 $ 10,000.00 $ 10,000.00
07/31/00 9,732.18 9,843.79
08/31/00 10,378.49 10,454.88
09/29/00 9,606.02 9,903.05
10/31/00 9,256.31 9,861.05
11/30/00 8,219.51 9,084.18
12/31/00 8,266.95 9,128.74
01/31/01 8,337.61 9,452.42
02/28/01 7,322.96 8,591.07
03/30/01 6,803.49 8,047.12
04/30/01 7,431.76 8,671.96
05/31/01 7,389.31 8,730.15
06/30/01 7,203.94 8,517.75
07/31/01 7,039.70 8,433.86
08/31/01 6,510.17 7,906.43
09/30/01 6,221.61 7,268.02
10/31/01 6,295.27 7,406.68
11/30/01 6,674.92 7,974.69
12/31/01 6,691.92 8,044.61
01/31/02 6,465.26 7,927.28
02/28/02 6,306.61 7,774.37
03/31/02 6,595.59 8,066.79
04/30/02 6,266.94 7,577.93
05/31/02 6,706.08 7,522.30
06/30/02 6,006.29 6,986.68
07/31/02 5,213.01 6,442.22
08/31/02 5,309.33 6,484.40
09/30/02 4,841.86 5,780.32
10/31/02 5,082.68 6,288.59
11/30/02 5,102.51 6,658.38
12/31/02 4,912.69 6,267.42
01/31/03 4,847.53 6,103.55
02/28/03 4,768.20 6,011.84
03/31/03 4,839.03 6,070.04
04/30/03 5,204.51 6,569.80
05/31/03 5,436.83 6,915.61
06/30/03 5,425.49 7,003.96
07/31/03 5,558.65 7,127.50
08/31/03 5,748.47 7,266.23
09/30/03 5,669.15 7,189.30
10/31/03 6,094.12 7,595.78
11/30/03 6,312.27 7,662.53
12/31/03 6,451.10 8,064.11
01/31/04 6,470.93 8,212.10
02/29/04 6,555.92 8,326.21
03/31/04 6,507.76 8,200.61
04/30/04 6,142.28 8,072.05
05/31/04 6,218.78 8,182.59
06/30/04 6,383.10 8,341.65
07/31/04 6,020.46 8,065.20
08/31/04 6,006.29 8,097.60
09/30/04 6,193.28 8,185.24
10/31/04 6,286.77 8,310.29
11/30/04 6,666.42 8,646.42
12/31/04 6,776.91 8,940.56
01/31/05 6,615.42 8,722.63
02/28/05 6,856.24 8,906.09
03/31/05 6,742.91 8,748.55
04/30/05 6,510.59 8,582.71
05/31/05 6,774.08 8,855.55
06/30/05 6,932.73 8,868.24
07/31/05 7,201.88 9,197.90
08/31/05 7,184.88 9,113.92
09/30/05 7,490.87 9,187.70
10/31/05 7,264.21 9,034.46
11/30/05 7,573.03 9,375.82
12/31/05 7,581.47 9,379.14
01/31/06 8,290.97 9,627.47
02/28/06 7,963.73 9,653.51
03/31/06 8,366.26 9,773.66
04/30/06 8,545.81 9,904.81
05/31/06 8,030.34 9,620.10
06/30/06 7,989.80 9,632.87
07/31/06 7,885.54 9,692.25
08/31/06 7,934.77 9,922.51
09/30/06 7,847.90 10,178.05
10/31/06 8,134.59 10,509.51
11/30/06 8,557.39 10,709.03
12/31/06 8,408.41 10,859.23
01/31/07 8,532.11 11,023.29
02/28/07 8,518.74 10,808.33
03/31/07 8,679.22 10,928.95
04/30/07 9,036.95 11,412.91
05/31/07 9,438.15 11,810.76
06/30/07 9,555.16 11,614.67
07/31/07 9,377.97 11,255.00
08/31/07 9,291.04 11,423.46
09/30/07 10,193.73 11,850.24
10/31/07 11,009.50 12,038.71
11/30/07 10,284.00 11,535.20
12/31/07 10,680.88 11,455.38
01/31/08 9,577.88 10,768.36
02/28/08 9,581.60 10,418.81
03/31/08 9,325.35 10,373.72
04/30/08 9,863.85 10,878.84
05/31/08 10,324.36 11,019.73
06/30/08 10,127.53 10,091.61
07/31/08 9,522.18 10,006.74
08/31/08 9,210.22 10,151.57
09/30/08 7,992.09 9,248.01
10/31/08 7,152.77 7,694.99
11/30/08 6,309.74 7,142.66
12/31/08 6,438.72 7,217.92
01/31/09 5,903.71 6,610.28
02/28/09 5,376.13 5,908.73
03/31/09 5,632.49 6,425.38
04/30/09 6,245.52 7,039.81
05/31/09 6,412.71 7,433.10
06/30/09 6,264.10 7,447.94
07/31/09 6,598.48 8,010.56
08/31/09 6,817.69 8,299.37
09/30/09 7,048.04 8,608.84
10/31/09 6,769.39 8,449.12
11/30/09 7,122.35 8,955.79
12/31/09 7,324.07 9,128.70
01/31/10 7,032.60 8,800.81
02/28/10 7,226.91 9,073.05
03/31/10 7,593.11 9,620.35
04/30/10 7,753.80 9,772.28
05/31/10 7,312.86 8,992.76
06/30/10 7,017.65 8,522.64
AVERAGE ANNUAL PERFORMANCE For the Periods Ended
June 30, 2010
Six Month One Year Five Year Ten Year
All American Equity Fund (4.18)% 12.03% 0.24% (3.48)%
------------------------------------------------------------------------
S&P 500 Index (6.65)% 14.43% (0.79)% (1.59)%
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. Returns for
periods less than one year are not annualized.
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
reflect no deduction for fees, expenses or taxes.
Pursuant to a voluntary arrangement, the Adviser has agreed to limit
total fund operating expenses (exclusive of acquired fund fees and
expenses, extraordinary expenses, taxes, brokerage commissions and
interest, and advisory fee performance adjustments, if any) to not
exceed 2.20%. The Adviser can modify or terminate this arrangement at
any time.
Please visit our website at www.usfunds.com for updated performance
information for different time periods.
15
ALL AMERICAN EQUITY FUND
THE SIX-MONTH PERIOD IN REVIEW - ECONOMIC AND POLITICAL ISSUES THAT
AFFECTED THE FUND
The start of 2010 saw the U.S. economy back in expansion mode after
the recession ended in mid-2009. The third and fourth quarters of
2009 saw GDP growth of 2.2 percent and 5.6 percent, respectively;
for the first two quarters of 2010, growth slowed to 3.7 percent and
2.4 percent, respectively.
With a somewhat tenuous recovery in place, the Federal Reserve kept
rates at a low level, targeting the federal funds rate between zero
and 0.25 percent. With growth slowing and inflation yet to make an
appearance, the threat of deflation should keep rates low for an
extended period.
Inflation declined during the time period, with the Consumer Price
Index (CPI)(1) for all items rising 1.1 percent as of June 2010,
compared to 2.7 percent at the end of December 2009. Excluding food
and energy, CPI rose 0.9 percent as of June 2010, down from 1.8
percent as of December 2009.
The employment picture remains troubling. In June 2010, the jobless
level was 9.5 percent.
The yield on the 10-year Treasury ended the period at 2.93 percent,
down from 3.84 percent at the end of December. The decline in yield
reflects growing concerns that the economy is slowing down and the
possibility that the economy could slip back into recession.
Stock market performance over the six-month period was marked by
extreme swings. The S&P 500 Index began the year at 1115, but fell 5
percent in the next 5 weeks, closing at 1056 on February 8. The
market then rallied 15 percent to carry the S&P 500 to the 1217
level in April, but then gave it all up by the end of the time
period to close at 1031.
INVESTMENT HIGHLIGHTS
OVERVIEW
The fund declined 4.18 percent for the six months ended June 30,
2010, compared to a negative 6.65 percent return for the S&P 500
Index, the fund's benchmark.
Because the fund is actively managed, and a holding period is
generally not a consideration in investment decisions, the portfolio
turnover rate
16
ALL AMERICAN EQUITY FUND
may fluctuate from year to year as the fund adjusts its portfolio
composition. Its annual portfolio turnover was, and is expected to
continue to be, more than 100 percent.
STRENGTHS
* Stock selection within the information technology sector provided
positive returns. Despite the sector being down 11 percent during
the period, several of the fund's holdings did very well. Akamai
Technologies, Inc.(2) was up 33 percent for the period held,
Apple, Inc.(3) returned 19 percent and Cree, Inc.(4) returned 6
percent. Akamai benefited from the move towards cloud computing
and the need for downloading and/or streaming content over the
Internet. Apple benefited from a strong portfolio of products, and
Cree was the beneficiary of the move towards LEDs.
* Stock selection was also strong in the consumer discretion sector
- an overweight position in the sector was beneficial because the
sector was the second-best performer in the S&P 500. Given the
level of unemployment, it was surprising that the retail sector
reported positive same-store sales for most of the time period.
The fund benefited from owning Skechers U.S.A., Inc.,(5) Lululemon
Athletica, Inc.(6) and AutoZone, Inc.(7)
WEAKNESSES
* The fund's underweighting in the industrial sector, the S&P's best
performer over the six months, diminished returns. Railroads were
one group that the fund missed. Much of the action was related to
Berkshire Hathaway Inc.'s(8) acquisition of Burlington Northern
Santa Fe Corp.(8) in mid-February. The rail group failed to meet
the revenue and earnings growth models employed by the fund.
* An underweight position in financials, the third-best performer,
also hurt the fund. The decision to underweight the sector was
based on declining sales and earnings growth, as well as dividend
cuts that made yields much less attractive. In addition, there
were concerns about commercial real estate becoming the next wave
of write-offs for banks.
CURRENT OUTLOOK
OPPORTUNITIES
* With midterm elections coming later this year, Congress and the
Obama administration may attempt to counteract what some observers
interpret as an anti-business tilt in an effort to keep Democratic
control of the House and Senate.
17
ALL AMERICAN EQUITY FUND
* There appears to be growing concern that the economic recovery may
be weakening, with some pundits going so far as to forecast a
slide back into recession. This raises the possibility of another
fiscal stimulus to help the economy.
* Given the lack of upward wage pressure and the stubbornly high
level of unemployment, the Federal Reserve is unlikely to raise
interest rates any time before the end of 2010.
THREATS
* The Obama administration may continue to take a more active role
in regulatory oversight. Periods of increased regulation are in
general considered bad for business.
* China has taken steps to diversify away from the dollar, which may
lead it to reduce purchases of U.S. Treasury securities. This
would result in higher interest rates, which could be a headwind
for stocks.
* As governments around the world begin to wind down the monetary
and fiscal stimulus programs put in place during the economic
crisis, it will likely present a headwind for stocks.
The fund ended the period with overweights in materials, utilities
and telecom and an emphasis on dividend paying stocks.
(1)The Consumer Price Index (CPI) is one of the most widely
recognized price measures for tracking the price of a market
basket of goods and services purchased by individuals. The
weights of components are based on consumer spending patterns.
(2)This security comprised 2.40% of the fund's total net assets as
of 06/30/10.
(3)This security comprised 4.13% of the fund's total net assets as
of 06/30/10.
(4)This security comprised 1.18% of the fund's total net assets as
of 06/30/10.
(5)This security comprised 1.20% of the fund's total net assets as
of 06/30/10.
(6)This security comprised 0.98% of the fund's total net assets as
of 06/30/10.
(7)This security comprised 1.27% of the fund's total net assets as
of 06/30/10.
(8)The fund did not hold this security as of 06/30/10.
18
ALL AMERICAN EQUITY FUND
TOP 10 HOLDINGS BASED ON NET ASSETS June 30, 2010
(EXCLUDING REPURCHASE AGREEMENTS)
APPLE, INC. 4.13%
Computers
--------------------------------------------------------------
SALESFORCE.COM, INC. 3.10%
Applications Software
--------------------------------------------------------------
AKAMAI TECHNOLOGIES, INC. 2.40%
Internet
--------------------------------------------------------------
PANERA BREAD CO. 1.98%
Restaurants
--------------------------------------------------------------
CONOCOPHILLIPS 1.94%
Oil & Gas - Integrated
--------------------------------------------------------------
BANK OF AMERICA CORP. 1.89%
Diversified Banking Institutions
--------------------------------------------------------------
CHIPOTLE MEXICAN GRILL, INC. 1.80%
Restaurants
--------------------------------------------------------------
DEVON ENERGY CORP. 1.60%
Oil & Gas Exploration & Production
--------------------------------------------------------------
DIRECTV 1.56%
Cable/Satellite TV
--------------------------------------------------------------
CERNER CORP. 1.50%
Medical Information System
--------------------------------------------------------------
TOTAL TOP TEN HOLDINGS 21.90%
PORTFOLIO ALLOCATION BY INDUSTRY SECTOR
BASED ON TOTAL INVESTMENTS June 30, 2010
[Pie Chart]
Technology 17.4%
Cash Equivalent 11.4%
Financials 11.3%
Consumer Discretion 10.9%
Energy 10.7%
Materials 9.1%
Health Care 7.5%
Telecommunications 5.9%
Consumer Staples 5.4%
Other 5.3%
Industrials 5.1%
19
HOLMES GROWTH FUND
MANAGEMENT TEAM'S PERSPECTIVE
INTRODUCTION
The Holmes Growth Fund (ACBGX) invests in companies with good growth
prospects and strong positive earnings momentum. The fund's primary
objective is to seek long-term capital appreciation.
PERFORMANCE GRAPH
HOLMES GROWTH FUND
[Holmes Growth Fund Graph]
S&P
Holmes Growth S&P 500 Composite
Date Fund Index 1500 Index
---- ------------- ------- ----------
06/30/00 $ 10,000.00 $ 10,000.00 $ 10,000.00
07/31/00 9,110.43 9,843.79 9,861.30
08/31/00 10,386.50 10,454.88 10,511.65
09/29/00 9,604.29 9,903.05 9,995.87
10/31/00 8,898.77 9,861.05 9,935.87
11/30/00 7,709.98 9,084.18 9,148.51
12/31/00 7,820.54 9,128.74 9,265.65
01/31/01 7,599.43 9,452.42 9,585.83
02/28/01 6,567.61 8,591.07 8,743.74
03/30/01 5,990.29 8,047.12 8,186.15
04/30/01 6,047.61 8,671.96 8,839.38
05/31/01 6,010.76 8,730.15 8,912.45
06/30/01 5,851.07 8,517.75 8,723.99
07/31/01 5,666.82 8,433.86 8,633.01
08/31/01 5,494.85 7,906.43 8,121.96
09/30/01 5,257.37 7,268.02 7,425.12
10/31/01 5,290.12 7,406.68 7,591.00
11/30/01 5,453.90 7,974.69 8,169.08
12/31/01 5,687.29 8,044.61 8,280.33
01/31/02 5,707.76 7,927.28 8,171.62
02/28/02 5,634.06 7,774.37 8,026.35
03/31/02 5,842.88 8,066.79 8,359.49
04/30/02 6,047.61 7,577.93 7,914.02
05/31/02 5,945.25 7,522.30 7,839.94
06/30/02 5,548.08 6,986.68 7,286.05
07/31/02 4,860.20 6,442.22 6,690.74
08/31/02 4,663.66 6,484.40 6,734.42
09/30/02 4,618.62 5,780.32 6,028.38
10/31/02 4,745.55 6,288.59 6,525.00
11/30/02 5,097.68 6,658.38 6,906.89
12/31/02 4,577.68 6,267.42 6,516.43
01/31/03 4,667.75 6,103.55 6,342.72
02/28/03 4,618.62 6,011.84 6,239.44
03/31/03 4,409.80 6,070.04 6,298.59
04/30/03 4,467.12 6,569.80 6,812.39
05/31/03 4,696.42 6,915.61 7,193.05
06/30/03 4,716.89 7,003.96 7,288.45
07/31/03 4,852.01 7,127.50 7,436.07
08/31/03 5,036.26 7,266.23 7,604.04
09/30/03 4,995.32 7,189.30 7,515.39
10/31/03 5,548.08 7,595.78 7,960.30
11/30/03 5,609.49 7,662.53 8,056.27
12/31/03 5,572.64 8,064.11 8,443.07
01/31/04 5,732.33 8,212.10 8,603.66
02/29/04 5,740.52 8,326.21 8,732.31
03/31/04 5,748.71 8,200.61 8,623.91
04/30/04 5,617.68 8,072.05 8,470.90
05/31/04 5,711.86 8,182.59 8,592.47
06/30/04 5,883.83 8,341.65 8,773.81
07/31/04 5,576.74 8,065.20 8,465.84
08/31/04 5,470.28 8,097.60 8,490.93
09/30/04 5,773.28 8,185.24 8,609.39
10/31/04 5,887.92 8,310.29 8,742.60
11/30/04 6,321.94 8,646.42 9,125.54
12/31/04 6,493.91 8,940.56 9,438.09
01/31/05 6,313.75 8,722.63 9,208.01
02/28/05 6,518.48 8,906.09 9,414.00
03/31/05 6,338.32 8,748.55 9,250.11
04/30/05 6,027.14 8,582.71 9,045.55
05/31/05 6,317.85 8,855.55 9,366.43
06/30/05 6,534.86 8,868.24 9,409.03
07/31/05 6,907.46 9,197.90 9,780.23
08/31/05 6,989.35 9,113.92 9,687.03
09/30/05 7,169.51 9,187.70 9,765.44
10/31/05 6,780.53 9,034.46 9,592.77
11/30/05 7,038.48 9,375.82 9,968.70
12/31/05 7,124.47 9,379.14 9,974.37
01/31/06 7,763.21 9,627.47 10,289.58
02/28/06 7,611.72 9,653.51 10,303.40
03/31/06 7,926.99 9,773.66 10,459.07
04/30/06 8,078.49 9,904.81 10,594.07
05/31/06 7,648.57 9,620.10 10,268.14
06/30/06 7,595.34 9,632.87 10,280.65
07/31/06 7,321.00 9,692.25 10,296.94
08/31/06 7,325.10 9,922.51 10,528.49
09/30/06 7,271.87 10,178.05 10,776.44
10/31/06 7,509.35 10,509.51 11,142.74
11/30/06 7,714.08 10,709.03 11,371.86
12/31/06 7,574.87 10,859.23 11,508.67
01/31/07 7,841.01 11,023.29 11,703.71
02/28/07 7,742.74 10,808.33 11,507.08
03/31/07 7,894.24 10,928.95 11,642.15
04/30/07 8,283.22 11,412.91 12,135.90
05/31/07 8,786.84 11,810.76 12,579.38
06/30/07 8,856.45 11,614.67 12,365.37
07/31/07 8,754.09 11,255.00 11,961.95
08/31/07 8,717.24 11,423.46 12,138.56
09/30/07 9,589.37 11,850.24 12,571.09
10/31/07 10,146.22 12,038.71 12,783.34
11/30/07 9,499.29 11,535.20 12,224.81
12/31/07 9,875.99 11,455.38 12,146.29
01/31/08 8,852.36 10,768.36 11,421.29
02/28/08 9,012.04 10,418.81 11,063.79
03/31/08 8,643.54 10,373.72 11,014.03
04/30/08 9,106.22 10,878.84 11,571.36
05/31/08 9,581.18 11,019.73 11,771.60
06/30/08 9,368.27 10,091.61 10,797.76
07/31/08 8,447.00 10,006.74 10,709.35
08/31/08 8,082.59 10,151.57 10,877.48
09/30/08 6,993.44 9,248.01 9,902.62
10/31/08 5,789.65 7,694.99 8,187.79
11/30/08 5,208.23 7,142.66 7,574.00
12/31/08 5,236.89 7,217.92 7,688.36
01/31/09 4,868.39 6,610.28 7,035.66
02/28/09 4,446.65 5,908.73 6,291.15
03/31/09 4,860.20 6,425.38 6,841.32
04/30/09 5,294.22 7,039.81 7,542.02
05/31/09 5,777.37 7,433.10 7,934.87
06/30/09 5,687.29 7,447.94 7,956.96
07/31/09 5,994.38 8,010.56 8,572.94
08/31/09 5,973.91 8,299.37 8,882.91
09/30/09 6,297.37 8,608.84 9,232.66
10/31/09 6,014.85 8,449.12 9,028.35
11/30/09 6,199.11 8,955.79 9,545.27
12/31/09 6,362.89 9,128.70 9,785.22
01/31/10 6,014.85 8,800.81 9,437.26
02/28/10 6,334.22 9,073.05 9,749.49
03/31/10 6,723.20 9,620.35 10,352.47
04/30/10 6,866.51 9,772.28 10,554.49
05/31/10 6,424.30 8,992.76 9,722.44
06/30/10 6,235.96 8,522.64 9,196.90
AVERAGE ANNUAL PERFORMANCE For the Periods Ended
June 30, 2010
Six Month One Year Five Year Ten Year
Holmes Growth Fund (1.99)% 9.65% (0.93)% (4.61)%
----------------------------------------------------------------------
S&P 500 Index (6.65)% 14.43% (0.79)% (1.59)%
----------------------------------------------------------------------
S&P Composite 1500 Index (6.03)% 15.58% (0.46)% (0.83)%
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. Returns for periods less than one year are not annualized.
The S&P 500 Index is a widely recognized capitalization-weighted index
of 500 common stock prices in U.S. companies. The S&P Composite 1500
Index is a broad-based capitalization-weighted index of 1500 U.S.
companies and is comprised of the S&P 400, S&P 500 and the S&P 600.
The returns for the indexes reflect no deduction for fees, expenses or
taxes.
Pursuant to a voluntary arrangement, the Adviser has agreed to limit
total fund operating expenses (exclusive of acquired fund fees and
expenses, extraordinary expenses, taxes, brokerage commissions and
interest, and advisory fee performance adjustments, if any) to not
exceed 2.20%. The Adviser can modify or terminate this arrangement at
any time.
Please visit our website at www.usfunds.com for updated performance
information for different time periods.
20
HOLMES GROWTH FUND
THE SIX-MONTH PERIOD IN REVIEW - ECONOMIC AND POLITICAL ISSUES THAT
AFFECTED THE FUND
The fourth quarter of 2009 showed a U.S. growth rate of 5.6 percent,
and the first and second quarters of 2010 came in with 3.7 percent
and 2.4 percent increases, respectively.
To aid a recovering economy, the Federal Reserve kept short-term
interest rates low - the federal funds target rate was in a range of
zero to 0.25 percent during the first six months of the year. The
year began with the 10-year U.S. Treasury note yield at 3.84
percent, reached a high for the period in early April around 3.99
percent, and ended the six-month period at 2.93 percent.
Inflation remained relatively contained, with year-over-year change
in the Consumer Price Index (CPI)(1) registering a high of 2.6
percent in January and a low of 1.1 percent in June. With the
economy showing some signs of slowing growth, inflation is not
expected to increase significantly in the near future.
The employment picture remained weak. Unemployment rose to a 26-year
high of 10.1 percent in October 2009. In December 2009, the jobless
level was 10.0 percent, and it finished the six-month period at 9.5
percent.
Stock market performance was marked by wide swings over the period.
The benchmark S&P Composite 1500 Index began the year at 254.79,
declined 4.2 percent in early February, rose 14.9 percent in late
April, and then declined 15.5 percent to end the second quarter at
237.18.
The political environment was one of strongly divided partisan
debates over national healthcare legislation and financial
regulatory reform. It was also marked by what some observers
interpreted as an anti-business tilt on the part of the current
administration and parts of the legislative bodies. Concern over
government spending and increasing government control over major
parts of the economy helped raise the profile of the Tea Party
movement.
INVESTMENT HIGHLIGHTS
OVERVIEW
The fund declined 1.99 percent for the six-month period ended June 30,
2010, compared to a negative 6.03 percent return for the benchmark S&P
Composite 1500 Index.
21
HOLMES GROWTH FUND
Our investment approach combines top-down and bottom-up analyses. The
top-down aspect reviews global trends that include economic outlooks,
political and legislative environment, government policy changes,
socioeconomic trends, currency effects and other macro items. The
bottom-up analysis emphasizes companies that we believe have prospects
to generate long-term, sustainable growth in cash flow and relatively
high returns on capital.
Because the fund is actively managed, and a holding period is
generally not a consideration in investment decisions, the portfolio
turnover rate may fluctuate from year to year as the fund adjusts
its portfolio composition. Its annual portfolio turnover was, and is
expected to continue to be, more than 100 percent.
STRENGTHS
* The fund benefited from being overweight the consumer discretion
sector, which outperformed. Stock selection was a key driver of
fund performance in this sector, with positive contributions from
Netflix, Inc.,(2) Deckers Outdoor Corp,(3) and Capella Education
Co.(2) Netflix benefited by more customers using its movie
DVD-by-mail service and, increasingly, its service of streaming
movies over the internet. Deckers gained through customer
acceptance of its Ugg line of boots. Capella flourished as more
individuals participated in the firm's online education programs.
* Although the fund was overweight materials, the second
worst-performing sector, it provided a positive contribution to
fund performance due to stock selection. Randgold Resources
Ltd.(4) and Red Back Mining, Inc.(5) benefited from an increasing
gold price, and Teck Resources Ltd.(2) prospered from an increase
in the price of coking coal. The fund also benefited by rotation
from copper and coking coal holdings in the first quarter to a
greater emphasis on gold stock holdings in the second quarter.
* Cash management and defensive option positions contributed to fund
performance by helping to limit downside volatility. Broadly
speaking, the fund's option strategy included writing options on
existing positions (covered calls) and purchasing put options to
fine tune general market or sector exposure.
WEAKNESSES
* Relative fund performance was diminished by being underweight the
industrials and financials sectors, the second- and third
best-performing sectors.
22
HOLMES GROWTH FUND
* The fund performance was hindered by being overweight the technology
sector which finished in the bottom half of the benchmark sectors.
Security selection was mixed. Fund performance was aided by holdings
in Apple, Inc.,(6) Riverbed Technology, Inc.(7) and Cree, Inc.,(8) but
holdings in CYBERplex Inc.,(2) Visa, Inc.(9) and AboveNet, Inc.(2)
diminished performance.
CURRENT OUTLOOK
OPPORTUNITIES
* If expectations of many investors for a continuing economic recovery
come to pass, it should be positive for corporate profits and stock
prices.
* If the current administration and legislators become less adversarial
toward businesses and business concerns, it would be positive for
stocks.
* Low interest rates, if continued throughout 2010, should provide a
favorable backdrop for the economy and stock prices.
THREATS
* If the economy does not improve in line with or above investors'
expectations, it would be a threat to stock prices.
* An escalation in concerns over sovereign debt obligations in
Europe would be negative for stocks.
* As governments around the world begin to wind down the monetary
and fiscal stimulus programs put in place during the economic
crisis, it will likely present a headwind for stocks.
From a fund construction viewpoint, at June 30, 2010, the fund was
in a balanced posture, being overweight consumer discretion,
materials, energy, and technology, with the offensive positioning
tempered by a higher-than-normal cash position and defensive option
positions.
(1)The Consumer Price Index (CPI) is one of the most widely
recognized price measures for tracking the price of a market
basket of goods and services purchased by individuals. The
weights of components are based on consumer spending patterns.
(2)The fund did not hold this security as of 06/30/10.
(3)This security comprised 1.25% of the fund's total net assets as
of 06/30/10.
(4)This security comprised 3.32% of the fund's total net assets as
of 06/30/10.
(5)This security comprised 0.89% of the fund's total net assets as
of 06/30/10.
(6)This security comprised 3.31% of the fund's total net assets as
of 06/30/10.
(7)This security comprised 1.62% of the fund's total net assets as
of 06/30/10.
(8)This security comprised 1.76% of the fund's total net assets as
of 06/30/10.
(9)This security comprised 1.55% of the fund's total net assets as
of 06/30/10.
23
HOLMES GROWTH FUND
TOP 10 HOLDINGS BASED ON NET ASSETS June 30, 2010
(EXCLUDING REPURCHASE AGREEMENTS)
NEWFOUNDLAND CAPITAL CORP. LTD. 7.87%
Radio
--------------------------------------------------------------
RANDGOLD RESOURCES LTD. 3.32%
Gold Mining
--------------------------------------------------------------
APPLE, INC. 3.31%
Computers
--------------------------------------------------------------
EXPRESS SCRIPTS, INC. 2.75%
Pharmacy Services
--------------------------------------------------------------
CONCHO RESOURCES, INC. 2.59%
Oil & Gas Exploration & Production
--------------------------------------------------------------
CORE LABORATORIES N.V. 2.33%
Oil Field Services
--------------------------------------------------------------
CTRIP.COM INTERNATIONAL LTD. 2.20%
E-Commerce
--------------------------------------------------------------
BAIDU, INC. 1.99%
Internet
--------------------------------------------------------------
PACIFIC RUBIALES ENERGY CORP. 1.92%
Oil & Gas Exploration & Production
--------------------------------------------------------------
BANK OF AMERICA CORP. 1.89%
Diversified Banking Institutions
--------------------------------------------------------------
TOTAL TOP TEN HOLDINGS 30.17%
PORTFOLIO ALLOCATION BY INDUSTRY SECTOR
BASED ON TOTAL INVESTMENTS June 30, 2010
[Pie Chart]
Consumer Discretion 23.6%
Technology 19.2%
Cash Equivalent 12.2%
Energy 12.1%
Materials 9.9%
Financials 9.4%
Health Care 8.6%
Other 5.0%
24
GLOBAL MEGATRENDS FUND
MANAGEMENT TEAM'S PERSPECTIVE
INTRODUCTION
The Global MegaTrends Fund (MEGAX and MEGIX) invests in companies
that are well positioned to benefit from future investments in
global infrastructure, both in the private and public sectors. The
fund considers a broad range of investable opportunities, including
publicly traded infrastructure assets (such as airports and toll
roads), select utilities, construction and engineering firms,
telecom operators, select companies in the alternative energy space,
and companies in the steel, cement and raw materials sectors.
PERFORMANCE GRAPH
GLOBAL MEGATRENDS FUND
[Global MegaTrends Fund Graph]
Global MegaTrends
Fund - S&P 500
Date Investor Class Index
---- ----------------- -------
06/30/00 $ 10,000.00 $ 10,000.00
07/31/00 10,291.52 9,843.79
08/31/00 11,095.41 10,454.88
09/29/00 10,909.89 9,903.05
10/31/00 10,927.56 9,861.05
11/30/00 10,359.86 9,084.18
12/31/00 11,134.89 9,128.74
01/31/01 11,497.88 9,452.42
02/28/01 11,076.03 8,591.07
03/30/01 10,487.40 8,047.12
04/30/01 11,439.01 8,671.96
05/31/01 11,507.69 8,730.15
06/30/01 11,007.35 8,517.75
07/31/01 10,389.29 8,433.86
08/31/01 9,427.87 7,906.43
09/30/01 8,495.87 7,268.02
10/31/01 9,025.64 7,406.68
11/30/01 9,300.33 7,974.69
12/31/01 9,722.18 8,044.61
01/31/02 8,957.99 7,927.28
02/28/02 8,639.58 7,774.37
03/31/02 9,435.61 8,066.79
04/30/02 9,138.43 7,577.93
05/31/02 9,011.06 7,522.30
06/30/02 8,023.98 6,986.68
07/31/02 6,835.25 6,442.22
08/31/02 7,217.34 6,484.40
09/30/02 6,644.20 5,780.32
10/31/02 7,026.29 6,288.59
11/30/02 7,100.59 6,658.38
12/31/02 6,791.28 6,267.42
01/31/03 6,919.42 6,103.55
02/28/03 6,919.42 6,011.84
03/31/03 6,748.57 6,070.04
04/30/03 7,111.62 6,569.80
05/31/03 7,784.34 6,915.61
06/30/03 7,933.84 7,003.96
07/31/03 8,072.65 7,127.50
08/31/03 8,553.17 7,266.23
09/30/03 8,318.25 7,189.30
10/31/03 8,809.44 7,595.78
11/30/03 9,151.14 7,662.53
12/31/03 9,793.27 8,064.11
01/31/04 9,641.77 8,212.10
02/29/04 9,988.05 8,326.21
03/31/04 9,955.59 8,200.61
04/30/04 9,652.59 8,072.05
05/31/04 9,739.16 8,182.59
06/30/04 9,923.13 8,341.65
07/31/04 9,706.70 8,065.20
08/31/04 9,728.34 8,097.60
09/30/04 9,966.41 8,185.24
10/31/04 9,955.59 8,310.29
11/30/04 10,269.41 8,646.42
12/31/04 10,583.23 8,940.56
01/31/05 10,323.51 8,722.63
02/28/05 10,658.97 8,906.09
03/31/05 10,312.69 8,748.55
04/30/05 10,161.20 8,582.71
05/31/05 10,410.08 8,855.55
06/30/05 10,648.15 8,868.24
07/31/05 11,016.08 9,197.90
08/31/05 11,254.15 9,113.92
09/30/05 11,438.11 9,187.70
10/31/05 11,145.93 9,034.46
11/30/05 11,730.28 9,375.82
12/31/05 11,840.85 9,379.14
01/31/06 12,208.09 9,627.47
02/28/06 11,829.72 9,653.51
03/31/06 12,007.78 9,773.66
04/30/06 12,163.58 9,904.81
05/31/06 11,829.72 9,620.10
06/30/06 11,829.72 9,632.87
07/31/06 11,762.95 9,692.25
08/31/06 11,907.62 9,922.51
09/30/06 11,896.49 10,178.05
10/31/06 12,319.38 10,509.51
11/30/06 12,508.56 10,709.03
12/31/06 12,437.29 10,859.23
01/31/07 12,425.26 11,023.29
02/28/07 12,160.64 10,808.33
03/31/07 12,401.21 10,928.95
04/30/07 13,062.77 11,412.91
05/31/07 13,459.70 11,810.76
06/30/07 13,459.70 11,614.67
07/31/07 13,435.64 11,255.00
08/31/07 13,652.15 11,423.46
09/30/07 14,554.28 11,850.24
10/31/07 15,336.12 12,038.71
11/30/07 15,095.55 11,535.20
12/31/07 15,488.80 11,455.38
01/31/08 14,186.24 10,768.36
02/28/08 14,444.18 10,418.81
03/31/08 14,031.49 10,373.72
04/30/08 15,011.63 10,878.84
05/31/08 15,785.42 11,019.73
06/30/08 15,037.42 10,091.61
07/31/08 13,915.42 10,006.74
08/31/08 13,438.24 10,151.57
09/30/08 11,039.48 9,248.01
10/31/08 8,511.75 7,694.99
11/30/08 7,970.09 7,142.66
12/31/08 8,108.33 7,217.92
01/31/09 7,514.41 6,610.28
02/28/09 6,791.37 5,908.73
03/31/09 7,139.98 6,425.38
04/30/09 8,030.87 7,039.81
05/31/09 9,257.44 7,433.10
06/30/09 9,050.86 7,447.94
07/31/09 9,760.99 8,010.56
08/31/09 9,515.67 8,299.37
09/30/09 9,825.54 8,608.84
10/31/09 9,567.32 8,449.12
11/30/09 10,225.80 8,955.79
12/31/09 10,552.75 9,128.70
01/31/10 9,944.18 8,800.81
02/28/10 10,008.93 9,073.05
03/31/10 10,449.16 9,620.35
04/30/10 10,539.80 9,772.28
05/31/10 9,516.90 8,992.76
06/30/10 9,322.67 8,522.64
AVERAGE ANNUAL PERFORMANCE For the Periods Ended June 30, 2010
Since Inception
(Institutional
Six Month One Year Five Year Ten Year Class)
Global MegaTrends Fund -
Investor Class (11.66)% 3.00% (2.62)% (0.70)% n/a
------------------------------------------------------------------------------------
Global MegaTrends Fund - Institutional Class
(Inception 3/1/10) n/a n/a n/a n/a (8.09)%
------------------------------------------------------------------------------------
S&P 500 Index (6.65)% 14.43% (0.79)% (1.59)% (0.07)%
------------------------------------------------------------------------------------
S&P Global Infrastructure
Index (13.05)% 6.57% 3.92% n/a (9.09)%
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. Returns for periods less than one year are not annualized.
The Institutional Class commenced on March 1, 2010.
The S&P 500 Index is a widely recognized capitalization-weighted index
of 500 common stock prices in U.S. companies. The S&P Global
Infrastructure Index provides liquid and tradable exposure to 75
companies from around the world that represent the listed
infrastructure universe. The index has balanced weights across three
distinct infrastructure clusters: utilities, transportation and
energy. The index commenced November 2001; it is not included in the
graph as it had less than the full period of data. The returns for the
indexes reflect no deduction for fees, expenses or taxes.
Pursuant to a voluntary arrangement, the Adviser has agreed to limit
total fund operating expenses (exclusive of acquired fund fees and
expenses, extraordinary expenses, taxes, brokerage commissions and
interest, and advisory fee performance adjustments, if any) to not
exceed 2.35% for the investor class. Also pursuant to a voluntary
agreement, the Adviser has agreed to waive all class specific expenses
of the institutional class. The Adviser can modify or terminate these
arrangements at any time.
Please visit our website at www.usfunds.com for updated performance
information for different time periods.
25
GLOBAL MEGATRENDS FUND
THE SIX-MONTH PERIOD IN REVIEW - ECONOMIC AND POLITICAL ISSUES THAT
AFFECTED THE FUND
The first half of the year was dominated by the sovereign crisis in
Europe and the risk that it would spread to other parts of the
world. This created financial uncertainty in many countries and
raised concerns about the impact on global infrastructure spending.
In addition, numerous market participants were concerned that a
sharp reversal in the Chinese property boom would dampen demand for
commodities.
The infrastructure theme remains intact with many governments
responding to the economic slowdown by investing in their country's
infrastructure. These policies are viewed by many as not only a
short-term job creator, but also as a means to build the long-term
foundation of an industrialized society.
INVESTMENT HIGHLIGHTS
The Global MegaTrends Fund began offering an institutional class of
shares on March 1, 2010. Performance of the Institutional Class is
included in the performance graph on the previous page. As the
Institutional Class had less than six months of operations, the
following discussion of performance is for the six month period
ended June 30, 2010, of the Investor Class.
OVERVIEW
The fund (Investor Class) had a negative 11.66 percent return in the
six-month period ended June 30, 2010, compared to a negative 6.65
percent return for the S&P 500 Index, the fund's benchmark, and a
negative 13.05 percent return for the S&P Global Infrastructure
Index.
STRENGTHS
* Some of the fund's best contributors to performance were foreign
stocks. Westshore Terminals Income Fund(1) and Teck Resources Ltd.,(2)
based in Canada, appreciated by 24 percent and 18 percent,
respectively, due to corporate activity and steady demand for coal.
* The outperformance was primarily driven by superior stock selection as
many of the fund's major regional themes underperformed, particularly
Russian, U.S. and Chinese infrastructure names.
26
GLOBAL MEGATRENDS FUND
WEAKNESSES
* Many typical infrastructure names were a drag on performance due
to anticipation that the Chinese economy will be recalibrated away
from fixed-asset formation toward consumer demand. Duoyuan Global
Water, Inc.(2) detracted from fund performance during the period,
due to a generally negative sentiment towards the Chinese stocks.
* The emergence of the sovereign crisis in Europe also created a
perception that various projects will be scaled down or postponed
as the countries need to preserve cash.
CURRENT OUTLOOK
The infrastructure theme will be prominent for many years to come due to
a growth in population and urbanization that necessitate improvements to
the existing global infrastructure.
Underinvestment in infrastructure assets in the past 20 to 30 years has
resulted in a significant deterioration of existing infrastructure.
Political leaders around the world are aware that investments in
infrastructure are needed to sustain economic growth and
competitiveness.
In addition, growing recognition of the need for alternative energy
sources will continue despite a recent decline in crude oil prices. The
U.S. Senate overwhelmingly approved tax credits for solar and wind power
in late 2008, and this will likely support continued investment in this
sector.
OPPORTUNITIES
* Despite a potential slowdown, China remains at the forefront of the
infrastructure boom and will likely be a rich source of potential
investments for years to come.
* Although a lower oil price may change the relative attractiveness
of wind and solar, investments in alternative energy sources will
likely gain traction due to growing global need for additional
power.
* Improved water infrastructure offers significant potential. This
will be crucial as emerging economies develop and while
opportunities in this space are currently limited.
THREATS
* While many countries remain committed to improving their
infrastructure, credit conditions remain tight and generally more
difficult and expensive to obtain.
27
GLOBAL MEGATRENDS FUND
* Emerging markets have been extremely volatile over the past year,
which makes for challenging conditions.
* Government support/subsidies are still required for a sustainable
development of alternative energy. These can vary with changes in
a political climate.
(1)This security comprised 3.73% of the fund's total net assets as
of 06/30/10.
(2)The fund did not hold this security as of 06/30/10.
28
GLOBAL MEGATRENDS FUND
TOP 10 HOLDINGS BASED ON NET ASSETS June 30, 2010
(EXCLUDING REPURCHASE AGREEMENTS)
GRUPO AEROPORTUARIO DEL SURESTE S.A.B. DE C.V. 4.65%
Airports
--------------------------------------------------------------
HYFLUX LTD. 4.42%
Water Treatment Systems
--------------------------------------------------------------
CPFL ENERGIA S.A. 4.27%
Electric - Integrated
--------------------------------------------------------------
COMPANIA DE CONCESSOES RODOVIARIAS 3.80%
Public Thoroughfares
--------------------------------------------------------------
WESTSHORE TERMINALS INCOME FUND 3.73%
Transport & Storage
--------------------------------------------------------------
BERKSHIRE HATHAWAY, INC. 3.46%
Holding Company
--------------------------------------------------------------
NUSTAR ENERGY L.P. 2.93%
Pipelines
--------------------------------------------------------------
GRUPO EMPRESARIAL IBIZA S.A. 2.65%
Metal & Mineral Mining
--------------------------------------------------------------
CSX CORP. 2.53%
Transportation
--------------------------------------------------------------
FIRSTENERGY CORP. 2.34%
Electric - Integrated
--------------------------------------------------------------
TOTAL TOP TEN HOLDINGS 34.78%
PORTFOLIO ALLOCATION BY INDUSTRY SECTOR
BASED ON TOTAL INVESTMENTS June 30, 2010
[Pie Chart]
Industrials 37.6%
Utilities 18.3%
Materials 12.8%
Cash Equivalent 10.7%
Telecommunications 5.8%
Energy 5.7%
Financials 3.7%
Other 5.4%
29
GLOBAL RESOURCES FUND
MANAGEMENT TEAM'S PERSPECTIVE
INTRODUCTION
The Global Resources Fund (PSPFX and PIPFX) is a non-diversified
natural resources fund that seeks long-term growth of capital plus
protection against inflation and monetary instability. The fund
invests globally in companies involved in the exploration,
production, transportation and processing of petroleum, natural gas,
industrial commodities, metals, minerals and forestry.
PERFORMANCE GRAPH
GLOBAL RESOURCES FUND
[Global Resources Fund Graph]
Global Morgan Stanley
Resources Fund - S&P 500 Commodity Related
Date Investor Class Index Equity Index
---- -------------- ----- ------------
06/30/00 $ 10,000.00 $ 10,000.00 $ 10,000.00
07/31/00 9,819.59 9,843.79 9,732.55
08/31/00 10,902.06 10,454.88 10,480.97
09/29/00 10,876.29 9,903.05 10,071.75
10/31/00 10,463.92 9,861.05 10,364.97
11/30/00 9,948.45 9,084.18 10,643.98
12/31/00 11,237.11 9,128.74 12,386.66
01/31/01 10,876.29 9,452.42 11,700.50
02/28/01 10,695.88 8,591.07 11,744.20
03/30/01 10,541.24 8,047.12 11,024.44
04/30/01 11,494.85 8,671.96 12,192.52
05/31/01 11,365.98 8,730.15 12,546.25
06/30/01 10,335.05 8,517.75 11,956.61
07/31/01 9,922.68 8,433.86 12,310.94
08/31/01 9,561.86 7,906.43 12,230.42
09/30/01 8,943.30 7,268.02 11,130.22
10/31/01 9,536.08 7,406.68 11,607.06
11/30/01 9,613.40 7,974.69 12,116.02
12/31/01 9,716.49 8,044.61 12,409.46
01/31/02 9,742.27 7,927.28 12,768.01
02/28/02 10,283.51 7,774.37 13,176.12
03/31/02 11,237.11 8,066.79 13,807.04
04/30/02 11,932.99 7,577.93 13,581.08
05/31/02 14,355.67 7,522.30 14,132.08
06/30/02 12,706.19 6,986.68 13,645.49
07/31/02 9,871.13 6,442.22 11,723.38
08/31/02 10,360.82 6,484.40 11,983.01
09/30/02 10,154.64 5,780.32 11,183.80
10/31/02 9,484.54 6,288.59 11,362.62
11/30/02 9,845.36 6,658.38 12,035.06
12/31/02 11,444.58 6,267.42 11,947.31
01/31/03 12,102.31 6,103.55 11,751.17
02/28/03 12,339.10 6,011.84 11,611.36
03/31/03 11,918.15 6,070.04 11,147.95
04/30/03 11,891.84 6,569.80 11,635.59
05/31/03 13,286.23 6,915.61 12,802.10
06/30/03 13,523.02 7,003.96 13,200.04
07/31/03 14,180.75 7,127.50 13,303.60
08/31/03 15,969.79 7,266.23 14,241.93
09/30/03 16,811.69 7,189.30 14,179.70
10/31/03 19,600.48 7,595.78 15,289.63
11/30/03 21,152.74 7,662.53 15,747.46
12/31/03 22,838.90 8,064.11 17,516.40
01/31/04 22,358.08 8,212.10 17,168.21
02/29/04 23,533.42 8,326.21 18,395.81
03/31/04 24,147.80 8,200.61 18,655.70
04/30/04 21,797.13 8,072.05 17,546.96
05/31/04 21,823.84 8,182.59 17,862.84
06/30/04 22,411.51 8,341.65 19,035.00
07/31/04 22,518.36 8,065.20 19,062.98
08/31/04 22,571.78 8,097.60 19,190.47
09/30/04 25,803.95 8,185.24 20,717.92
10/31/04 26,578.61 8,310.29 20,592.53
11/30/04 29,917.63 8,646.42 22,387.67
12/31/04 29,784.77 8,940.56 22,069.07
01/31/05 29,983.15 8,722.63 21,675.29
02/28/05 35,934.44 8,906.09 23,588.20
03/31/05 35,509.34 8,748.55 22,725.60
04/30/05 32,788.76 8,582.71 21,123.52
05/31/05 33,157.17 8,855.55 21,362.46
06/30/05 35,906.10 8,868.24 22,237.19
07/31/05 38,286.61 9,197.90 23,864.78
08/31/05 40,837.16 9,113.92 24,506.98
09/30/05 44,266.24 9,187.70 25,682.46
10/31/05 40,440.41 9,034.46 24,253.72
11/30/05 41,857.38 9,375.82 25,566.47
12/31/05 44,370.85 9,379.14 26,907.26
01/31/06 51,605.56 9,627.47 30,505.21
02/28/06 48,407.38 9,653.51 28,432.41
03/31/06 52,071.32 9,773.66 29,671.36
04/30/06 57,070.41 9,904.81 32,106.25
05/31/06 53,592.78 9,620.10 31,497.93
06/30/06 53,468.58 9,632.87 31,224.62
07/31/06 53,748.03 9,692.25 31,383.62
08/31/06 53,220.18 9,922.51 30,799.04
09/30/06 48,283.18 10,178.05 29,611.21
10/31/06 51,419.26 10,509.51 31,505.29
11/30/06 55,021.09 10,709.03 33,949.91
12/31/06 54,214.76 10,859.23 33,192.05
01/31/07 53,337.97 11,023.29 34,140.21
02/28/07 53,666.77 10,808.33 34,444.50
03/31/07 55,858.74 10,928.95 35,224.09
04/30/07 59,694.69 11,412.91 37,094.06
05/31/07 63,567.17 11,810.76 40,491.40
06/30/07 64,663.16 11,614.67 40,801.28
07/31/07 65,320.75 11,255.00 41,157.72
08/31/07 62,105.86 11,423.46 40,876.32
09/30/07 71,129.48 11,850.24 44,581.96
10/31/07 78,691.78 12,038.71 46,922.74
11/30/07 71,896.67 11,535.20 44,511.62
12/31/07 75,874.03 11,455.38 48,203.23
01/31/08 70,411.10 10,768.36 45,112.87
02/28/08 76,784.52 10,418.81 48,305.65
03/31/08 71,711.80 10,373.72 46,852.95
04/30/08 76,654.45 10,878.84 50,425.30
05/31/08 85,412.48 11,019.73 53,438.11
06/30/08 88,967.72 10,091.61 53,162.69
07/31/08 70,844.66 10,006.74 48,549.39
08/31/08 64,688.03 10,151.57 46,163.43
09/30/08 48,212.53 9,248.01 38,804.98
10/31/08 34,381.77 7,694.99 26,835.97
11/30/08 30,783.18 7,142.66 26,934.68
12/31/08 28,736.82 7,217.92 28,338.30
01/31/09 28,900.71 6,610.28 26,908.74
02/28/09 27,316.36 5,908.73 24,598.92
03/31/09 29,774.84 6,425.38 27,182.99
04/30/09 33,162.07 7,039.81 30,674.37
05/31/09 39,335.56 7,433.10 35,949.94
06/30/09 36,057.60 7,447.94 33,772.23
07/31/09 39,554.10 8,010.56 36,668.74
08/31/09 39,991.16 8,299.37 37,418.55
09/30/09 44,307.14 8,608.84 39,943.40
10/31/09 44,197.88 8,449.12 39,317.89
11/30/09 46,984.15 8,955.79 42,632.15
12/31/09 48,349.96 9,128.70 43,870.99
01/31/10 45,235.90 8,800.81 40,875.18
02/28/10 47,694.37 9,073.05 43,751.07
03/31/10 51,190.87 9,620.35 46,000.10
04/30/10 52,502.05 9,772.28 46,420.08
05/31/10 46,492.45 8,992.76 41,673.62
06/30/10 45,290.53 8,522.64 39,523.18
AVERAGE ANNUAL PERFORMANCE For the Periods Ended June 30, 2010
Since Inception
(Institutional
Six Month One Year Five Year Ten Year Class)
Global Resources Fund -
Investor Class (6.33)% 25.61% 4.75% 16.30% n/a
------------------------------------------------------------------------------------
Global Resources Fund - Institutional Class
(Inception 3/1/10) n/a n/a n/a n/a (6.27)%
------------------------------------------------------------------------------------
S&P 500 Index (6.65)% 14.43% (0.79)% (1.59)% (0.07)%
------------------------------------------------------------------------------------
Morgan Stanley Commodity Related
Equity Index (9.92)% 17.02% 12.18% 14.72% (11.07)%
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.
Returns for periods less than one year are not annualized.
The Institutional Class commenced on March 1, 2010.
The S&P 500 Index is a widely recognized capitalization-weighted index of 500 common
stock prices in U.S. companies. The Morgan Stanley Commodity Related Equity Index is
an equal-dollar weighted index based on shares of widely held companies involved in
commodity-related industries such as energy, non-ferrous metals, agriculture and
forest products. The returns for the indexes reflect no deduction for fees, expenses
or taxes.
Pursuant to a voluntary arrangement, the Adviser has agreed to limit total fund
operating expenses (exclusive of acquired fund fees and expenses, extraordinary
expenses, taxes, brokerage commissions and interest, and advisory fee performance
adjustments, if any) to not exceed 1.90% for the investor class. Also pursuant to a
voluntary agreement, the Adviser has agreed to waive all class specific expenses of
the institutional class. The Adviser can modify or terminate these arrangements at
any time.
Please visit our website at www.usfunds.com for updated performance
information for different time periods.
30
GLOBAL RESOURCES FUND
THE SIX-MONTH PERIOD IN REVIEW - ECONOMIC AND POLITICAL ISSUES THAT
AFFECTED THE FUND
The global economic expansion that began in 2009 and continued into
the first quarter of 2010 came into question during the second
quarter. The MSCI World Index(1) reached a post-2008 Great Recession
high of 1242 in mid-April and then fell 16 percent to a 10-month low
of 1041 on June 30.
The heightened volatility during the quarter was driven principally
by concerns of a sovereign debt crisis in Greece and other Southern
European countries with weak economies and severely leveraged
balance sheets.
Another macro factor was a move by China, the growth engine for the
global economy over the past 18 months, to introduce specific
measures to cool an overheated housing market and control the growth
of loans that were being funneled into infrastructure projects.
These two factors gave investors a reason to question global growth
prospects, the result being incremental de-risking of portfolios and
a search for safe-haven investments in U.S. Treasuries and gold.
During the second quarter, the managers made tactical rotations out
of China-centric commodities such as iron ore, coal, steel and
copper and used the proceeds to increase the fund's relative
weighting in the energy sector and large-capitalization gold stocks.
Crude oil traded in a range between $70 and $85 per barrel in the
first half of 2010, generally twice the price of the prior year
period. Demand growth remains strongest in non-OECD countries,
especially in Asia and the Middle East.
INVESTMENT HIGHLIGHTS
The Global Resources Fund began offering an institutional class of
shares on March 1, 2010. Performance of the Institutional Class is
included in the performance graph. As the Institutional Class had
less than six months of operations, the following discussion of
performance is for the six month period ended June 30, 2010, of the
Investor Class.
OVERVIEW
In the first half of 2010, the Global Resources Fund (Investor
Class) returned a negative 6.33 percent. It outperformed, by more
than 350 basis points, its benchmark, the Morgan Stanley Commodity
Related Equity
31
GLOBAL RESOURCES FUND
Index (CRX), which declined 9.92 percent. The fund also delivered top
decile returns relative to its Lipper peer group.
After posting a solid positive first quarter result of 5.88 percent, the
fund declined 11.53 percent during the second quarter. It was a quarter
marked by volatility - the S&P 500 Index fell 11.43 percent, its worst
performance since the fourth quarter of 2008. The fund was able to
deliver strong relative performance as measured against the CRX, which
had a total return of negative 14.09 percent. On a year-over-year basis,
the fund continues to outperform with a total return of 25.61 percent,
compared with 17.02 percent for its benchmark and 14.43 percent for the
S&P 500 Index.
Because the fund is actively managed, and a holding period is
generally not a consideration in investment decisions, the portfolio
turnover rate may fluctuate from year to year as the fund adjusts
its portfolio composition. Its annual portfolio turnover was, and is
expected to continue to be, more than 100 percent.
STRENGTHS
* Gold moved solidly upward in the first half of 2010 from $1,100
per ounce to nearly $1,250 per ounce. Rising fear of sovereign
debt default in several southern European countries increased
demand for safe haven assets such as gold.
* Precious metals equities posted strong gains, with the NYSE Arca
Gold BUGS Index(2) (HUI) rising 10.89 percent. The HUI
outperformed the CRX benchmark by nearly 21 percentage points. The
fund's exposure to gold equities contributed to its relative
return to the CRX benchmark.
* The fund benefited from exposure to high-impact crude oil
exploration and production companies such as Pacific Rubiales
Energy Corp.,(3) which gained more than 52 percent.
WEAKNESSES
* Most base metals finished the period lower. The London Metals
Exchange Index(4) posted a negative 11.79 percent return and the
Bloomberg World Mining Index(5) fell 13.28 percent.
* Commodities were also lower, as represented by the
Reuters/Jefferies CRB Index,(6) which slid 8.77 percent in the
first half of 2010, and the CRX Index, which declined 9.92
percent.
* The price of crude oil fell 4.7 percent and natural gas declined
17.2 percent in the period. Despite a recovery in U.S. industrial
gas demand,
32
GLOBAL RESOURCES FUND
a rapidly growing supply profile from emerging shale discoveries
continues to weigh on the price. Related gas equities represented by
the AMEX Natural Gas Index(7) fell 10 percent.
CURRENT OUTLOOK
OPPORTUNITIES
* China may face an annual shortfall of 200 million metric tons of
coal by 2015, according to the Xinhua news agency. Coal demand may
rise to a record 3.8 billion metric tons during the period, while
domestic coal producers may be able to deliver 3.6 billion tons.
* Coal demand in India may increase more than 500 million metric
tons between 2008 and 2015, according to Wood Mackenzie, an energy
research/consulting firm. Demand may reach 1.5 billion metric tons
a year by 2025.
* The five-week period ending in May saw the most aggressive net
selling of metals and mining stocks in four years, according to
net flows reported by UBS Typically, a selloff of this intensity
is a strong contrarian signal that the worst has been priced into
mining equities over the short- to intermediate-term.
THREATS
* Mohammad Ali Khatibi, Iran's OPEC governor, said that OPEC
currently has a surplus capacity of 4 million to 6 million barrels
per day, which is keeping the crude prices low. Khatibi added that
the Gulf of Mexico oil spill in April will likely limit access to
sensitive areas and increase the production cost of crude oil in
deep waters.
(1)The MSCI World Index is a capitalization-weighted index that
monitors the performance of stocks from around the world.
(2)The NYSE Arca Gold BUGS (Basket of Unhedged Gold Stocks) Index
(HUI) is a modified equal dollar weighted index of companies
involved in gold mining. The HUI Index was designed to provide
significant exposure to near term movements in gold prices by
including companies that do not hedge their gold production
beyond 1.5 years.
(3)This security comprised 3.66% of the fund's total net assets as
of 06/30/10.
(4)The London Metals Exchange Index (LMEX) is an index on the six
designated LME primary metals contracts denominated in US
dollars. Weightings of the six metals are derived from global
production volume and trade liquidity averaged over the preceding
five-year period. The index value is calculated as the sum of the
prices for the three qualifying months multiplied by the
corresponding weights, multiplied by a constant.
(5)The Bloomberg World Mining Index is a capitalization-weighted
index of the leading mining stocks in the world.
(6)The Reuters/Jefferies CRB Index is an unweighted geometric
average of commodity price levels relative to the base year
average price.
(7)The AMEX Natural Gas Index (XNG) is an equal-dollar weighted
index designed to measure the performance of highly capitalized
companies in the natural gas industry involved primarily in
natural gas exploration and production and natural gas pipeline
transportation and transmission.
33
GLOBAL RESOURCES FUND
TOP 10 HOLDINGS BASED ON NET ASSETS June 30, 2010
(EXCLUDING REPURCHASE AGREEMENTS)
CHEVRON CORP. 3.99%
Oil & Gas - Integrated
--------------------------------------------------------------
OCCIDENTAL PETROLEUM CORP. 3.68%
Oil & Gas - Integrated
--------------------------------------------------------------
PACIFIC RUBIALES ENERGY CORP. 3.66%
Oil & Gas Exploration & Production
--------------------------------------------------------------
CANADIAN NATURAL RESOURCES LTD. 3.64%
Oil & Gas Exploration & Production
--------------------------------------------------------------
RANDGOLD RESOURCES LTD. 3.28%
Gold & Silver Mining
--------------------------------------------------------------
NEWMONT MINING CORP. 2.95%
Gold Mining
--------------------------------------------------------------
BARRICK GOLD CORP. 2.89%
Gold Mining
--------------------------------------------------------------
SOUTHWESTERN ENERGY CO. 2.25%
Oil & Gas Exploration & Production
--------------------------------------------------------------
CONOCOPHILLIPS 2.19%
Oil & Gas - Integrated
--------------------------------------------------------------
ANADARKO PETROLEUM CORP. 2.14%
Oil & Gas Exploration & Production
--------------------------------------------------------------
TOTAL TOP TEN HOLDINGS 30.67%
34
GLOBAL RESOURCES FUND
PORTFOLIO ALLOCATION BY INDUSTRY SECTOR June 30, 2010
[Pie Chart]
Oil & Gas Exploration & Production 37.7%
Precious Metals 18.4%
Cash Equivalent 11.3%
Oil & Gas - Integrated 10.6%
Oil & Gas Equipment & Services 6.1%
Metals & Mining 5.9%
Other Sectors 4.5%
Oil & Gas - Other 3.5%
General Basic Materials 2.0%
Energy:
Oil & Gas Exploration & Production 37.7%
Oil & Gas - Integrated (includes 10.6%
Refining and Marketing)
Oil & Gas Equipment & Services 6.1%
Oil & Gas - Other 3.5%
Total Energy 57.9%
Basic Materials:
Precious Metals (includes Gold/Silver 18.4%
Mining and Platinum)
Metals & Mining (includes Copper, 5.9%
Uranium and Coal)
General Basic Materials 2.0%
Total Basic Materials 26.3%
Other Sectors 4.5%
Repurchase Agreement 11.3%
-----
100.0%
=====
35
PRECIOUS METALS AND MINERALS FUNDS
MANAGEMENT TEAM'S PERSPECTIVE
INTRODUCTION
The World Precious Minerals Fund (UNWPX and UNWIX) and the Gold and
Precious Metals Fund (USERX) seek an objective of long-term capital
growth plus protection against inflation and monetary instability.
The Gold and Precious Metals Fund focuses on equity securities of
established gold and precious metals companies, and it pursues
current income as a secondary objective. 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 this fund has the
latitude to invest in a broad range of precious minerals, it
currently remains focused on the gold sector.
PERFORMANCE GRAPHS
WORLD PRECIOUS MINERALS FUND
[World Precious Minerals Fund Graph]
World Precious NYSE Arca
Minerals Fund - S&P 500 Gold Miners
Date Investor Class Index Index
---- -------------- ----- -----
06/30/00 $ 10,000.00 $ 10,000.00 $ 10,000.00
07/31/00 8,942.46 9,843.79 9,099.41
08/31/00 9,300.16 10,454.88 9,428.04
09/29/00 8,351.48 9,903.05 8,898.54
10/31/00 7,465.01 9,861.05 7,567.12
11/30/00 7,387.25 9,084.18 7,818.31
12/31/00 7,886.47 9,128.74 8,138.29
01/31/01 7,808.39 9,452.42 8,548.29
02/28/01 7,792.77 8,591.07 9,417.43
03/30/01 7,277.42 8,047.12 8,480.29
04/30/01 7,964.55 8,671.96 9,726.01
05/31/01 8,276.89 8,730.15 10,203.23
06/30/01 8,245.66 8,517.75 10,444.99
07/31/01 7,777.15 8,433.86 10,198.12
08/31/01 7,886.47 7,906.43 10,935.57
09/30/01 8,339.36 7,268.02 11,477.26
10/31/01 8,230.04 7,406.68 11,137.23
11/30/01 8,183.19 7,974.69 10,696.18
12/31/01 8,479.91 8,044.61 11,334.96
01/31/02 9,963.50 7,927.28 13,034.32
02/28/02 10,916.12 7,774.37 14,476.98
03/31/02 12,696.44 8,066.79 15,922.01
04/30/02 14,023.86 7,577.93 16,971.19
05/31/02 19,739.60 7,522.30 21,068.05
06/30/02 16,288.29 6,986.68 18,372.18
07/31/02 11,712.58 6,442.22 15,198.71
08/31/02 13,336.72 6,484.40 18,019.18
09/30/02 13,430.42 5,780.32 18,166.99
10/31/02 11,650.11 6,288.59 16,290.73
11/30/02 11,775.05 6,658.38 16,319.04
12/31/02 15,553.71 6,267.42 20,368.33
01/31/03 16,147.00 6,103.55 20,529.50
02/28/03 15,553.71 6,011.84 18,384.37
03/31/03 14,655.77 6,070.04 17,038.80
04/30/03 14,270.93 6,569.80 16,867.41
05/31/03 15,313.19 6,915.61 18,973.23
06/30/03 15,633.89 7,003.96 20,079.80
07/31/03 16,644.08 7,127.50 21,225.68
08/31/03 19,514.30 7,266.23 24,282.79
09/30/03 21,021.56 7,189.30 24,172.73
10/31/03 25,719.75 7,595.78 26,432.64
11/30/03 29,968.96 7,662.53 30,459.53
12/31/03 29,971.74 8,064.11 29,954.79
01/31/04 27,812.91 8,212.10 26,291.13
02/29/04 29,036.24 8,326.21 27,505.01
03/31/04 31,572.87 8,200.61 29,413.11
04/30/04 24,682.61 8,072.05 22,500.49
05/31/04 25,492.17 8,182.59 24,825.27
06/30/04 24,610.65 8,341.65 23,941.98
07/31/04 23,423.29 8,065.20 23,554.78
08/31/04 24,430.74 8,097.60 25,528.52
09/30/04 28,208.69 8,185.24 28,125.71
10/31/04 28,856.34 8,310.29 28,525.89
11/30/04 31,554.88 8,646.42 29,388.73
12/31/04 30,261.32 8,940.56 27,092.26
01/31/05 28,689.06 8,722.63 25,192.81
02/28/05 31,648.60 8,906.09 27,159.09
03/31/05 30,168.83 8,748.55 25,665.32
04/30/05 26,099.46 8,582.71 22,875.11
05/31/05 26,006.97 8,855.55 23,594.48
06/30/05 28,670.56 8,868.24 25,624.83
07/31/05 28,837.04 9,197.90 24,988.40
08/31/05 30,594.26 9,113.92 26,187.35
09/30/05 34,922.59 9,187.70 30,640.75
10/31/05 32,000.05 9,034.46 28,328.16
11/30/05 35,200.05 9,375.82 31,038.17
12/31/05 39,607.82 9,379.14 34,969.93
01/31/06 49,002.98 9,627.47 42,087.74
02/28/06 47,755.49 9,653.51 37,974.37
03/31/06 54,577.70 9,773.66 41,335.74
04/30/06 61,243.98 9,904.81 46,512.44
05/31/06 56,390.46 9,620.10 41,325.92
06/30/06 56,254.02 9,632.87 41,304.69
07/31/06 57,345.57 9,692.25 41,339.68
08/31/06 58,515.10 9,922.51 43,270.96
09/30/06 52,199.68 10,178.05 38,044.73
10/31/06 56,176.05 10,509.51 40,503.16
11/30/06 62,004.17 10,709.03 44,665.67
12/31/06 60,320.75 10,859.23 42,612.92
01/31/07 60,276.49 11,023.29 42,254.02
02/28/07 61,161.61 10,808.33 42,711.58
03/31/07 60,210.11 10,928.95 42,132.16
04/30/07 63,020.36 11,412.91 42,339.71
05/31/07 63,285.89 11,810.76 41,825.94
06/30/07 62,710.57 11,614.67 40,449.31
07/31/07 65,078.25 11,255.00 42,765.05
08/31/07 57,687.52 11,423.46 40,068.01
09/30/07 70,012.78 11,850.24 48,151.26
10/31/07 81,939.74 12,038.71 53,895.99
11/30/07 70,765.13 11,535.20 49,404.06
12/31/07 74,204.77 11,455.38 49,796.38
01/31/08 77,823.13 10,768.36 54,397.97
02/28/08 85,370.82 10,418.81 57,585.20
03/31/08 75,081.09 10,373.72 51,900.23
04/30/08 67,731.28 10,878.84 47,301.78
05/31/08 72,536.93 11,019.73 50,065.65
06/30/08 71,575.80 10,091.61 52,494.59
07/31/08 61,116.46 10,006.74 47,214.12
08/31/08 53,342.63 10,151.57 40,743.74
09/30/08 43,872.68 9,248.01 36,577.70
10/31/08 25,696.05 7,694.99 22,596.80
11/30/08 27,166.01 7,142.66 28,798.69
12/31/08 34,909.11 7,217.92 36,455.44
01/31/09 35,529.88 6,610.28 36,885.49
02/28/09 35,895.03 5,908.73 35,981.37
03/31/09 40,678.60 6,425.38 40,019.26
04/30/09 39,692.68 7,039.81 35,631.12
05/31/09 52,765.33 7,433.10 47,866.66
06/30/09 47,214.93 7,447.94 40,922.21
07/31/09 51,377.73 8,010.56 43,071.66
08/31/09 51,377.73 8,299.37 42,748.93
09/30/09 57,329.81 8,608.84 48,955.54
10/31/09 57,220.26 8,449.12 45,938.52
11/30/09 66,604.82 8,955.79 55,162.15
12/31/09 66,153.43 9,128.70 50,052.68
01/31/10 59,811.52 8,800.81 44,157.79
02/28/10 64,064.78 9,073.05 47,645.74
03/31/10 67,216.75 9,620.35 48,049.06
04/30/10 73,824.50 9,772.28 54,879.12
05/31/10 68,014.24 8,992.76 53,887.34
06/30/10 68,052.21 8,522.64 56,380.75
AVERAGE ANNUAL PERFORMANCE For the Periods Ended June 30, 2010
Since Inception
(Institutional
Six Month One Year Five Year Ten Year Class)
World Precious Minerals Fund -
Investor Class 2.87% 44.13% 18.86% 21.13% n/a
- ------------------------------------------------------------------------------------
World Precious Minerals Fund - Institutional Class
(Inception 3/1/10) n/a n/a n/a n/a 3.46%
- ------------------------------------------------------------------------------------
S&P 500 Index (6.65)% 14.43% (0.79)% (1.59)% (0.07)%
- ------------------------------------------------------------------------------------
NYSE Arca Gold Miners
Index* 12.64% 37.78% 17.07% 18.87% 16.35%
<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.
Returns for periods less than one year are not annualized.
The Institutional Class commenced on March 1, 2010.
The S&P 500 Index is a widely recognized capitalization-weighted index of 500 common
stock prices in U.S. companies. The NYSE Arca Gold Miners Index is a modified market
capitalization-weighted index comprised of publicly-traded companies involved
primarily in the mining for gold and silver. The returns for the indexes reflect no
deduction for fees, expenses or taxes.
Pursuant to a voluntary arrangement, the Adviser has agreed to limit total fund
operating expenses (exclusive of acquired fund fees and expenses, extraordinary
expenses, taxes, brokerage commissions and interest, and advisory fee performance
adjustments, if any) to not exceed 1.90% for the investor class. Also pursuant to a
voluntary agreement, the Adviser has agreed to waive all class specific expenses of
the institutional class. The Adviser can modify or terminate these arrangements at
any time.
36
PRECIOUS METALS AND MINERALS FUNDS
GOLD AND PRECIOUS METALS FUND
[Gold and Precious Metals Fund Graph]
FTSE
Gold and Precious S&P 500 Gold Mines
Date Metals Fund Index Index
---- ----------------- ------- ----------
06/30/00 $ 10,000.00 $ 10,000.00 $ 10,000.00
07/31/00 9,041.10 9,843.79 9,024.35
08/31/00 9,589.04 10,454.88 9,137.17
09/29/00 8,972.60 9,903.05 8,651.57
10/31/00 8,082.19 9,861.05 7,334.98
11/30/00 8,219.18 9,084.18 7,736.61
12/31/00 8,938.36 9,128.74 8,466.05
01/31/01 8,835.62 9,452.42 8,266.04
02/28/01 9,041.10 8,591.07 8,852.08
03/30/01 8,219.18 8,047.12 7,980.83
04/30/01 9,315.07 8,671.96 9,305.10
05/31/01 9,726.03 8,730.15 9,624.13
06/30/01 9,691.78 8,517.75 9,615.21
07/31/01 8,972.60 8,433.86 9,386.35
08/31/01 9,212.33 7,906.43 9,986.01
09/30/01 9,589.04 7,268.02 10,892.68
10/31/01 9,452.05 7,406.68 10,418.23
11/30/01 9,383.56 7,974.69 10,000.62
12/31/01 9,931.51 8,044.61 10,386.15
01/31/02 11,575.34 7,927.28 11,870.06
02/28/02 13,253.42 7,774.37 13,047.33
03/31/02 15,136.99 8,066.79 14,386.35
04/30/02 16,643.84 7,577.93 15,343.67
05/31/02 22,054.79 7,522.30 17,581.68
06/30/02 18,082.19 6,986.68 15,058.45
07/31/02 13,356.16 6,442.22 12,740.07
08/31/02 15,445.21 6,484.40 14,505.86
09/30/02 15,890.41 5,780.32 14,583.38
10/31/02 13,698.63 6,288.59 13,262.82
11/30/02 13,835.62 6,658.38 12,923.61
12/31/02 18,013.70 6,267.42 15,824.56
01/31/03 18,458.90 6,103.55 15,753.85
02/28/03 17,294.52 6,011.84 14,747.85
03/31/03 16,198.63 6,070.04 13,834.74
04/30/03 15,479.45 6,569.80 13,689.35
05/31/03 17,226.03 6,915.61 15,255.62
06/30/03 17,739.73 7,003.96 16,047.48
07/31/03 18,664.38 7,127.50 16,629.31
08/31/03 21,712.33 7,266.23 18,762.91
09/30/03 22,671.23 7,189.30 18,899.64
10/31/03 26,198.63 7,595.78 20,431.23
11/30/03 31,130.14 7,662.53 22,612.39
12/31/03 30,096.65 8,064.11 22,598.02
01/31/04 26,695.32 8,212.10 19,767.54
02/29/04 27,691.67 8,326.21 20,143.16
03/31/04 30,371.51 8,200.61 21,850.37
04/30/04 23,328.34 8,072.05 17,088.40
05/31/04 25,217.97 8,182.59 18,830.78
06/30/04 24,049.84 8,341.65 18,068.14
07/31/04 22,641.20 8,065.20 18,122.76
08/31/04 23,878.05 8,097.60 19,712.31
09/30/04 27,313.74 8,185.24 21,157.70
10/31/04 27,657.31 8,310.29 21,969.39
11/30/04 29,753.09 8,646.42 22,656.35
12/31/04 28,159.31 8,940.56 21,032.87
01/31/05 26,811.81 8,722.63 19,482.95
02/28/05 28,677.58 8,906.09 20,807.22
03/31/05 26,880.91 8,748.55 19,806.43
04/30/05 23,356.68 8,582.71 17,737.47
05/31/05 23,874.95 8,855.55 17,929.68
06/30/05 26,500.85 8,868.24 19,763.46
07/31/05 26,708.16 9,197.90 19,096.80
08/31/05 28,504.83 9,113.92 19,995.67
09/30/05 32,581.88 9,187.70 24,087.51
10/31/05 30,577.90 9,034.46 22,230.57
11/30/05 33,100.15 9,375.82 24,239.10
12/31/05 37,395.09 9,379.14 26,886.04
01/31/06 46,586.59 9,627.47 31,809.01
02/28/06 44,140.18 9,653.51 27,754.07
03/31/06 50,465.89 9,773.66 29,088.87
04/30/06 58,049.75 9,904.81 32,781.44
05/31/06 53,820.96 9,620.10 30,097.47
06/30/06 54,100.55 9,632.87 30,331.04
07/31/06 55,183.96 9,692.25 29,692.86
08/31/06 56,407.17 9,922.51 30,431.48
09/30/06 50,326.10 10,178.05 27,410.89
10/31/06 53,366.63 10,509.51 28,837.47
11/30/06 58,643.88 10,709.03 31,373.57
12/31/06 56,162.53 10,859.23 30,271.10
01/31/07 55,568.40 11,023.29 29,128.25
02/28/07 55,847.99 10,808.33 29,146.09
03/31/07 53,611.27 10,928.95 28,556.46
04/30/07 53,855.91 11,412.91 28,619.99
05/31/07 53,611.27 11,810.76 27,855.37
06/30/07 52,388.07 11,614.67 27,361.85
07/31/07 54,275.30 11,255.00 29,570.51
08/31/07 50,256.20 11,423.46 28,189.26
09/30/07 61,789.26 11,850.24 34,976.35
10/31/07 70,771.07 12,038.71 38,970.60
11/30/07 63,886.18 11,535.20 36,657.05
12/31/07 65,659.30 11,455.38 36,642.68
01/31/08 72,782.91 10,768.36 40,261.81
02/28/08 78,400.38 10,418.81 42,659.82
03/31/08 71,154.66 10,373.72 37,356.90
04/30/08 64,926.59 10,878.84 34,046.89
05/31/08 68,712.28 11,019.73 36,425.71
06/30/08 69,933.47 10,091.61 39,098.90
07/31/08 62,769.15 10,006.74 34,802.96
08/31/08 55,564.13 10,151.57 29,927.80
09/30/08 50,150.19 9,248.01 28,624.08
10/31/08 33,542.01 7,694.99 18,453.05
11/30/08 38,874.54 7,142.66 24,145.84
12/31/08 47,895.86 7,217.92 29,359.10
01/31/09 47,586.28 6,610.28 29,010.72
02/28/09 47,232.48 5,908.73 27,966.83
03/31/09 51,301.20 6,425.38 31,291.46
04/30/09 47,984.31 7,039.81 27,952.10
05/31/09 62,224.82 7,433.10 36,438.59
06/30/09 54,971.89 7,447.94 32,216.09
07/31/09 57,227.37 8,010.56 33,374.66
08/31/09 56,696.67 8,299.37 32,966.96
09/30/09 63,772.70 8,608.84 37,093.73
10/31/09 62,799.74 8,449.12 35,444.11
11/30/09 72,087.03 8,955.79 41,614.69
12/31/09 68,544.15 9,128.70 38,058.85
01/31/10 62,115.36 8,800.81 33,716.47
02/28/10 65,484.93 9,073.05 36,005.75
03/31/10 66,903.70 9,620.35 36,694.70
04/30/10 74,928.60 9,772.28 41,245.02
05/31/10 71,736.37 8,992.76 40,315.06
06/30/10 73,509.83 8,522.64 42,214.72
AVERAGE ANNUAL PERFORMANCE For the Periods Ended
June 30, 2010
Six Month One Year Five Year Ten Year
Gold and Precious Metals
Fund 7.24% 33.72% 22.62% 22.06%
------------------------------------------------------------------------
S&P 500 Index (6.65)% 14.43% (0.79)% (1.59)%
------------------------------------------------------------------------
FTSE Gold Mines Index* 10.92% 31.04% 16.38% 15.48%
* These are not total returns. These returns reflect simple
appreciation only and do not reflect dividend reinvestment
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. Returns for periods less than one year are not annualized.
The S&P 500 Index is a widely recognized capitalization-weighted index
of 500 common stock prices in U.S. companies. The FTSE Gold Mines
Index encompasses all gold mining companies that have a sustainable
and attributable gold production of at least 300,000 ounces a year and
that derive 75% or more of their revenue from mined gold. The returns
for the indexes reflect no deduction for fees, expenses or taxes.
Pursuant to a voluntary arrangement, the Adviser has agreed to limit
total fund operating expenses (exclusive of acquired fund fees and
expenses, extraordinary expenses, taxes, brokerage commissions and
interest, and advisory fee performance adjustments, if any) to not
exceed 1.90%. The Adviser can modify or terminate this arrangement at
any time.
Please visit our website at www.usfunds.com for updated performance
information for different time periods.
37
PRECIOUS METALS AND MINERALS FUNDS
THE SIX-MONTH PERIOD IN REVIEW - ECONOMIC AND POLITICAL ISSUES THAT
AFFECTED THE FUND
Gold demand from China and India remained strong through the first
half of 2010 despite high bullion prices. This suggests that
consumers in the two top gold-consuming nations are growing
accustomed to higher gold prices. Indian demand rose 698 percent in
the first quarter of 2010, while China gained 59 percent in the
first half of 2010.
Central bank gold sales have remained very low - this trend has
supported the gold price by limiting the supply of gold available on
the market. Central banks sold just 7.2 tons of gold in the
six-month period under an agreement that allows up to 400 tons to be
sold annually.
China, which buys virtually all of the gold produced within the
country, recently added a new dimension to its off-market purchases.
China National Gold Group Corp.,(1) a private company and China's
largest gold producer, will purchase and process gold concentrates
under a long-term contract from the Kensington Mine in Alaska. China
offered payment for the gold within seven days of delivery versus
the traditional three-month wait for payment from many smelters.
This provides an innovative source for China to increase its gold
holdings without going into the open market.
The World Economic Forum (WEF) has stated that unsustainable
sovereign debt levels ranked among the top three global economic
risks for the year ahead. Moody's echoed this theme: it says the
five biggest AAA-rated countries - the U.S., Britain, Germany,
France and Spain are all at risk of soaring debt cost and will have
to implement austerity plans that threaten "social cohesion."
Higher taxes and more layers of regulation are consistent
governmental themes. The U.S. government has enacted a sweeping
financial reform law, while Australia's prime minister proposed a
"super profits" tax of 30 percent on certain mining projects
starting in July 2012. Germany's Angela Merkel encouraged global
economic powers to send a "signal of strength" by agreeing to a more
forceful financial regulation.
INVESTMENT HIGHLIGHTS
The World Precious Minerals Fund began offering an institutional
class of shares on March 1, 2010. Performance of the Institutional
Class is included in the performance graph on the previous page. As
the Institutional Class had less than six months of operations, the
following discussion of performance is for the six month period
ended June 30, 2010, of the Investor Class.
38
PRECIOUS METALS AND MINERALS FUNDS
For the six-month period ending June 30, 2010, the World Precious
Minerals Fund (Investor Class) returned 2.87 percent, while its
benchmark NYSE Arca Gold Miners Index rose 13.00 percent on a total
return basis. The Gold and Precious Metals Fund gained 7.24 percent,
compared to the 10.92 percent return of its benchmark, the FTSE Gold
Mines Index.
Both funds underperformed their benchmarks primarily due to their
higher relative exposure to smaller capitalization stocks. The
Market Vectors Junior Gold Miners Total Return Index(2) returned
7.81 percent, while the S&P/TSX Venture Composite Index(3) posted a
negative return of 8.31 percent.
Spot gold finished the period at $1,242.25, up $145.30, or 13.25
percent. The S&P 500 Index posted a negative return of 6.65 percent,
the U.S. Trade Weighted Dollar Index(4) increased 10.48 percent, and
the yield on the 90-day Treasury bill rose from 0.05 percent to 0.18
percent.
Because the fund is actively managed, and a holding period is
generally not a consideration in investment decisions, the portfolio
turnover rate may fluctuate from year to year as the fund adjusts
its portfolio composition. Its annual portfolio turnover was, and is
expected to continue to be, more than 100 percent.
STRENGTHS
* Red Back Mining, Inc.(5) was the top performance contributor for
both funds in the first half of the year, with a price rise of
76.66 percent as the company demonstrated significant growth in
its resource base.
* Centamin Egypt Ltd.,(6) an up-and-coming gold producer,
successfully commissioned its Sukari mine. This lifted the share
price 22.62 percent for the half, and significantly helped the
performance of the Gold and Precious Metals Fund.
* Randgold Resources Ltd.(7) remains a consistent performer, with a
return of 20.02 percent over the six months. Randgold was the
largest holding in both funds during the period. This helped the
performance of both the Gold and Precious Metals Fund and the
World Precious Minerals Fund. The funds hold a larger weighting
than the benchmarks.
WEAKNESSES
* South Africa reported that the country's gold production extended
its downward slide. Once by far the world's largest producer,
South Africa has fallen quickly and now trails China, the United
States and Australia.
39
PRECIOUS METALS AND MINERALS FUNDS
* China's State Administration of Foreign Exchange proclaimed, "the
gold market is too small, illiquid and volatile to be considered
suitable for asset allocation."
CURRENT OUTLOOK
OPPORTUNITIES
* A recent UBS poll of more than 80 reserve managers concluded that
gold was expected to be the strongest asset class for the rest of
the year, and 22 percent of the managers predicted that gold would
be the most important reserve asset of the next 25 years.
* The World Gold Council (WGC) noted that gold consumption in China
is expected to double over the next decade. Were this to come to
pass, China's known unmined gold reserves would be depleted in
just six years. The WGC also forecasts gold imports into India may
match or exceed last year's estimate of 480 to 500 tons and that
gold prices could advance to as high as $1,300 per ounce in the
coming year.
* Martin Murenbeeld, a prominent gold analyst at Dundee Wealth
Economics, noted that we are entering a multi-year period of
sovereign debt problems stemming from several decades of
expansionary government spending. This supports a positive
long-term macro picture for gold.
THREATS
* The African National Congress, which is in power in South Africa,
is pushing for nationalization of at least 60 percent of the
country's mining sector. This would likely involve expropriation
with or without compensation. Some analysts believe the proposal
is unlikely to become government policy, and President Jacob Zuma
has made statements reaffirming a free-market approach to
government. Still, the prospect of nationalization has rattled
investors.
* A recent Gluskin Sheff report highlights the impact of bear
markets over the past 125 years. Looking at the Dow Jones
Industrial Average(8) (and adjusting for inflation), the average
bear market of 16 years pretty much wipes out all the gains from
the previous bull market.
* An online commodity poll documented that 93 percent of investors
believe the gold price will fall in the near term due to a
recovery in global equity markets and a rise in interest rates.
(1)Neither fund held this security at 06/30/10.
(2)The Market Vectors Junior Gold Miners Total Return Index consists
of small-cap gold and silver mining companies listed in freely
investable markets around the world. The index is float-adjusted
and modified market cap-weighted with no single stock accounting
for more than 8% of the index.
40
PRECIOUS METALS AND MINERALS FUNDS
(3)The S&P/TSX Venture Composite Index is a broad market indicator
for the Canadian venture capital market. The index is market
capitalization weighted and, at its inception, included 531
companies. A quarterly revision process is used to remove
companies that comprise less than 0.05% of the weight of the
index, and add companies whose weight, when included, will be
greater than 0.05% of the index.
(4)The U.S. Trade Weighted Dollar Index provides a general
indication of the international value of the U.S. dollar.
(5)This security comprised 4.85% of the total net assets of the
World Precious Minerals Fund and 5.65% of the total net assets of
the Gold and Precious Metals Fund as of 06/30/10.
(6)This security comprised 4.07% of the total net assets of the
World Precious Minerals Fund and 5.69% of the total net assets of
the Gold and Precious Metals Fund as of 06/30/10.
(7)This security comprised 3.55% 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 06/30/10.
(8)The Dow Jones Industrial Average is a price-weighted average of
30 blue chip stocks that are generally leaders in their industry.
41
PRECIOUS METALS AND MINERALS FUNDS
WORLD PRECIOUS MINERALS FUND
TOP 10 HOLDINGS BASED ON NET ASSETS June 30, 2010
(EXCLUDING REPURCHASE AGREEMENTS)
RANDGOLD RESOURCES LTD. 9.52%
Senior Gold Producers
--------------------------------------------------------------
ROMARCO MINERALS, INC. 5.53%
Gold/Mineral Exploration & Development
--------------------------------------------------------------
RED BACK MINING, INC. 4.85%
Senior Gold Producers
--------------------------------------------------------------
CENTAMIN EGYPT LTD. 4.07%
Intermediate & Junior Gold Producers
--------------------------------------------------------------
AGNICO-EAGLE MINES LTD. 3.77%
Senior Gold Producers
--------------------------------------------------------------
GOLDCORP, INC. 3.70%
Senior Gold Producers
--------------------------------------------------------------
ANDEAN RESOURCES LTD. 2.72%
Gold/Mineral Exploration & Development
--------------------------------------------------------------
MEDORO RESOURCES LTD. 2.47%
Intermediate & Junior Gold Producers
--------------------------------------------------------------
SPDR GOLD TRUST 2.46%
Exchange-Traded Fund
--------------------------------------------------------------
GREYSTAR RESOURCES LTD. 2.19%
Gold/Mineral Exploration & Development
--------------------------------------------------------------
TOTAL TOP TEN HOLDINGS 41.28%
WORLD PRECIOUS MINERALS FUND
PORTFOLIO ALLOCATION BY INDUSTRY June 30, 2010
BASED ON TOTAL INVESTMENTS
[Pie Chart]
Gold/Mineral Exploration & Development 29.0%
Senior Gold Producers 27.1%
Intermediate & Junior Gold Producers 17.1%
Other 11.4%
Cash Equivalent 6.4%
Silver Mining 5.5%
Exchange-Traded Fund 3.5%
42
PRECIOUS METALS AND MINERALS FUNDS
GOLD AND PRECIOUS METALS FUND
TOP 10 HOLDINGS BASED ON NET ASSETS June 30, 2010
(EXCLUDING REPURCHASE AGREEMENTS)
RANDGOLD RESOURCES LTD. 9.92%
Gold Mining
--------------------------------------------------------------
BARRICK GOLD CORP. 7.25%
Gold Mining
--------------------------------------------------------------
AGNICO-EAGLE MINES LTD. 6.91%
Gold Mining
--------------------------------------------------------------
CENTAMIN EGYPT LTD. 5.69%
Gold Mining
--------------------------------------------------------------
RED BACK MINING, INC. 5.65%
Gold Mining
--------------------------------------------------------------
NEWMONT MINING CORP. 5.46%
Gold Mining
--------------------------------------------------------------
DUNDEE PRECIOUS METALS, INC. 4.24%
Gold Mining
--------------------------------------------------------------
SPDR GOLD TRUST 3.83%
Exchange-Traded Fund
--------------------------------------------------------------
KINROSS GOLD CORP. 2.93%
Gold Mining
--------------------------------------------------------------
SILVER WHEATON CORP. 2.89%
Silver Mining
--------------------------------------------------------------
TOTAL TOP TEN HOLDINGS 54.77%
GOLD AND PRECIOUS METALS FUND
PORTFOLIO ALLOCATION BY INDUSTRY
BASED ON TOTAL INVESTMENTS June 30, 2010
[Pie Chart]
Gold Mining 72.0%
Silver Mining 9.2%
Cash Equivalent 6.3%
Exchange-Traded Fund 5.3%
Other 3.4%
Financial Services 2.1%
Gold/Mineral Royalty Companies 1.7%
43
EASTERN EUROPEAN FUND
MANAGEMENT TEAM'S PERSPECTIVE
INTRODUCTION
The investment objective of the Eastern European Fund (EUROX) is to
achieve long-term capital growth by investing in a non-diversified
portfolio of equity securities of companies located in the emerging
markets of Eastern Europe.(1)
PERFORMANCE GRAPH
EASTERN EUROPEAN FUND
[Eastern European Fund Graph]
MSCI Emerging
Eastern Markets Europe
European S&P 500 10/40 Index
Date Fund Index (Net Total Return)
---- --------- ------- ------------------
06/30/00 $ 10,000.00 $ 10,000.00 $ 10,000.00
07/31/00 10,050.61 9,843.79 9,836.61
08/31/00 10,445.34 10,454.88 9,295.48
09/29/00 9,331.98 9,903.05 8,827.03
10/31/00 8,927.13 9,861.05 8,516.47
11/30/00 7,813.77 9,084.18 6,773.49
12/31/00 8,613.36 9,128.74 7,611.27
01/31/01 9,321.86 9,452.42 7,990.41
02/28/01 8,674.09 8,591.07 6,720.81
03/30/01 8,502.02 8,047.12 6,223.70
04/30/01 8,886.64 8,671.96 7,029.61
05/31/01 9,362.35 8,730.15 6,824.63
06/30/01 9,635.63 8,517.75 6,516.17
07/31/01 9,230.77 8,433.86 5,854.00
08/31/01 9,129.55 7,906.43 5,818.11
09/30/01 8,431.17 7,268.02 4,856.32
10/31/01 9,331.98 7,406.68 5,669.90
11/30/01 9,908.91 7,974.69 6,395.10
12/31/01 10,283.40 8,044.61 6,996.42
01/31/02 11,143.72 7,927.28 7,601.35
02/28/02 11,012.15 7,774.37 6,894.81
03/31/02 12,004.05 8,066.79 7,543.32
04/30/02 12,965.59 7,577.93 7,943.09
05/31/02 13,157.89 7,522.30 7,712.25
06/30/02 12,358.30 6,986.68 6,760.72
07/31/02 11,599.19 6,442.22 6,370.93
08/31/02 12,206.48 6,484.40 6,525.19
09/30/02 12,054.66 5,780.32 6,268.06
10/31/02 12,884.62 6,288.59 6,933.86
11/30/02 13,876.52 6,658.38 7,679.38
12/31/02 13,846.15 6,267.42 7,226.74
01/31/03 13,410.93 6,103.55 7,099.83
02/28/03 13,856.28 6,011.84 7,461.20
03/31/03 13,340.08 6,070.04 6,931.74
04/30/03 15,010.12 6,569.80 8,256.62
05/31/03 16,457.49 6,915.61 9,209.90
06/30/03 16,528.34 7,003.96 9,296.71
07/31/03 16,305.67 7,127.50 9,247.51
08/31/03 17,935.22 7,266.23 10,408.35
09/30/03 19,149.80 7,189.30 10,938.74
10/31/03 19,676.11 7,595.78 11,100.59
11/30/03 20,323.89 7,662.53 11,053.22
12/31/03 22,340.84 8,064.11 12,456.45
01/31/04 23,931.28 8,212.10 12,818.72
02/29/04 26,183.51 8,326.21 13,845.81
03/31/04 27,998.10 8,200.61 15,068.70
04/30/04 25,350.93 8,072.05 13,255.33
05/31/04 25,062.73 8,182.59 12,706.12
06/30/04 25,628.46 8,341.65 13,054.78
07/31/04 24,977.34 8,065.20 12,711.89
08/31/04 26,215.53 8,097.60 13,428.96
09/30/04 28,553.16 8,185.24 14,536.86
10/31/04 30,325.05 8,310.29 15,467.71
11/30/04 31,840.77 8,646.42 15,836.00
12/31/04 34,040.26 8,940.56 16,882.93
01/31/05 34,417.74 8,722.63 17,227.75
02/28/05 38,625.59 8,906.09 19,723.42
03/31/05 34,506.56 8,748.55 17,670.01
04/30/05 32,064.01 8,582.71 16,692.01
05/31/05 33,185.37 8,855.55 17,074.09
06/30/05 34,995.07 8,868.24 18,132.24
07/31/05 38,525.67 9,197.90 19,958.59
08/31/05 41,856.42 9,113.92 21,761.93
09/30/05 46,619.39 9,187.70 24,238.05
10/31/05 42,888.95 9,034.46 22,157.99
11/30/05 46,386.23 9,375.82 24,087.15
12/31/05 47,923.13 9,379.14 24,992.46
01/31/06 55,518.03 9,627.47 28,400.16
02/28/06 57,034.59 9,653.51 29,801.91
03/31/06 55,433.11 9,773.66 28,892.15
04/30/06 60,880.57 9,904.81 31,968.73
05/31/06 51,271.68 9,620.10 27,701.22
06/30/06 49,949.24 9,632.87 27,735.51
07/31/06 52,933.82 9,692.25 29,665.10
08/31/06 54,401.85 9,922.51 30,037.61
09/30/06 52,339.33 10,178.05 28,876.41
10/31/06 56,197.45 10,509.51 31,133.36
11/30/06 59,994.90 10,709.03 33,518.65
12/31/06 63,635.78 10,859.23 35,413.69
01/31/07 62,824.25 11,023.29 34,909.51
02/28/07 61,648.91 10,808.33 34,526.03
03/31/07 66,028.42 10,928.95 36,696.06
04/30/07 67,497.59 11,412.91 37,784.86
05/31/07 66,224.31 11,810.76 37,057.35
06/30/07 70,729.75 11,614.67 39,452.70
07/31/07 74,171.79 11,255.00 41,316.17
08/31/07 71,163.50 11,423.46 39,515.95
09/30/07 77,250.04 11,850.24 43,299.04
10/31/07 83,588.43 12,038.71 47,436.14
11/30/07 80,957.93 11,535.20 46,265.94
12/31/07 84,549.00 11,455.38 47,504.61
01/31/08 72,053.99 10,768.36 39,731.43
02/28/08 74,800.52 10,418.81 41,964.06
03/31/08 72,240.48 10,373.72 40,966.12
04/30/08 75,512.58 10,878.84 42,198.17
05/31/08 83,362.23 11,019.73 46,718.36
06/30/08 77,157.11 10,091.61 42,946.74
07/31/08 72,274.39 10,006.74 41,044.97
08/31/08 63,475.33 10,151.57 35,970.17
09/30/08 50,149.58 9,248.01 28,500.24
10/31/08 32,297.14 7,694.99 18,793.35
11/30/08 26,804.08 7,142.66 15,902.74
12/31/08 26,041.16 7,217.92 15,758.57
01/31/09 22,429.98 6,610.28 13,269.34
02/28/09 21,158.44 5,908.73 12,296.54
03/31/09 24,108.42 6,425.38 14,524.01
04/30/09 28,940.27 7,039.81 18,025.81
05/31/09 36,060.90 7,433.10 22,254.09
06/30/09 33,924.71 7,447.94 20,688.27
07/31/09 37,637.61 8,010.56 23,747.71
08/31/09 38,349.68 8,299.37 24,885.27
09/30/09 42,469.47 8,608.84 27,220.53
10/31/09 42,520.33 8,449.12 28,017.68
11/30/09 44,300.49 8,955.79 28,822.13
12/31/09 46,334.95 9,128.70 29,950.83
01/31/10 46,640.12 8,800.81 30,506.72
02/28/10 43,995.32 9,073.05 28,703.50
03/31/10 48,827.17 9,620.35 32,072.88
04/30/10 49,183.21 9,772.28 32,294.77
05/31/10 43,384.98 8,992.76 28,227.89
06/30/10 41,553.96 8,522.64 27,162.62
AVERAGE ANNUAL PERFORMANCE For the Periods Ended
June 30, 2010
Six Month One Year Five Year Ten Year
Eastern European Fund (10.32)% 22.49% 3.49% 15.30%
- -----------------------------------------------------------------------
S&P 500 Index (6.65)% 14.43% (0.79)% (1.59)%
- -----------------------------------------------------------------------
MSCI Emerging Markets Europe
10/40 Index
(Net Total Return) (9.31)% 31.29% 8.41% 10.50%
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. Foreign and emerging market investing involves special risks
such as currency fluctuation and less public disclosure, as well as
economic and political risk. 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. Returns for periods less than one
year are not annualized.
The S&P 500 Index is a widely recognized capitalization-weighted index
of 500 common stock prices in U.S. companies. The MSCI Emerging
Markets Europe 10/40 Index (Net Total Return) is a free float-adjusted
market capitalization index that is designed to measure equity
performance in the emerging market countries of Europe (Czech
Republic, Hungary, Poland, Russia, and Turkey). The index is
calculated on a net return basis (i.e., reflects the minimum possible
dividend reinvestment after deduction of the maximum rate withholding
tax). The index is periodically rebalanced relative to the
constituents' weights in the parent index. The returns for the indexes
reflect no deduction for fees, expenses or taxes, except as noted
above.
Pursuant to a voluntary arrangement, the Adviser has agreed to limit
total fund operating expenses (exclusive of acquired fund fees and
expenses, extraordinary expenses, taxes, brokerage commissions and
interest, and advisory fee performance adjustments, if any) to not
exceed 2.85%. The Adviser can modify or terminate this arrangement at
any time.
Please visit our website at www.usfunds.com for updated performance
information for different time periods.
44
EASTERN EUROPEAN FUND
THE SIX-MONTH PERIOD IN REVIEW - ECONOMIC AND POLITICAL ISSUES THAT
AFFECTED THE FUND
The first half of 2010 was characterized by increasingly positive
macroeconomic data flow. Because the Russian economy had been slow
to recover, the government continued to provide stimulus by lowering
interest rates below 8 percent and expanding the monetary base by 33
percent year over year in April. These measures ran counter to the
other BRIC(2) countries, where signs of overheating led policymakers
to apply the brakes. The green shoots of this recovery are now
clearly seen across the Russian economic landscape. Industrial
production in June ticked up nearly 10 percent after expanding 12.6
percent in May, while June unemployment dropped to 6.8 percent.
Retail sales rose during each of the six months, jumping 5.8 percent
in June.
The recovery was more robust in Turkey, where GDP expanded 11.7
percent in the first quarter alone. The region's most vibrant
economy rebounded on strength in exports and domestic demand.
Borrowing rates touched a four-decade low, spurring double-digit
loan growth in the first half of the year among the nation's banks.
With subdued inflation risk, both Russia and Turkey are likely to
maintain a lower interest rate environment for an extended period.
Global deflationary forces create an opportunity for structural
changes in the economies that have historically struggled under the
burden of high domestic inflation. Against this stable macroeconomic
backdrop, the Russian ruble and Turkish lira remained relatively
unchanged relative to the U.S. dollar.
The same cannot be said about other currencies in the region. The
euro lost 15 percent of its value amid concerns about the
possibility of a Greek sovereign debt default. The Polish zloty
underwent depreciation of the same magnitude against the U.S.
dollar, while the Czech koruna depreciated 12 percent.
Hungary's forint was the most battered currency, declining 18.5
percent in the first six months of the year. Hungary's domestic
demand has been contracting for three years amid an austerity
program separate from the International Monetary Fund (IMF) support
deal. After elections in May, the new government has plans to grow
the economy via fiscal spending and has tried without success to
renegotiate the IMF deal.
While a weaker euro is a sign of structural problems in the European
Union, it made German exports more competitive. German firms in turn
rely on suppliers from Eastern Europe, and industrial production in
Czech
45
EASTERN EUROPEAN FUND
Republic, Slovakia, and Hungary saw double digit percentage growth
in May.
INVESTMENT HIGHLIGHTS
OVERVIEW
The fund returned negative 10.32 percent in the first half of
calendar 2010, compared to a negative 9.31 percent return for the
benchmark MSCI Emerging Europe 10/40 Index.
STRENGTHS
* Russia's domestic sectors have proven resilient through the recent
market downturn. Stocks with the most domestic exposure -
retailers, utilities and cellular operators - have outperformed
key natural resources like steel, oil and gas.
* The fund's relative overweight in Turkey contributed to
performance, as this was the best-performing market in the region.
Banks led the advance, with Turkiye Is Bankasi(3) gaining 13
percent during the period.
* Select materials names, particularly those with exposure to
precious metals, contributed to performance. One example is the
Russian company Polymetal,(4) which gained 37 percent.
* In the energy space, NovaTek OAO(5) continued to grow production
and reserves. The stock bucked the negative trend for the industry
by gaining 10 percent.
* The fund was significantly underweight Central European equities
out of concern that they would be negatively impacted by currency
devaluation stemming from the Greek crisis contagion. This concern
has largely materialized in the first half of the year.
WEAKNESSES
* Even though European prices for spot gas edged up 5 percent on
higher demand in April, the gap with oil-linked Russian exports
widened. Gazprom OAO(6) shares declined 24 percent in the first
six months of the year.
* Faced with a budget deficit, the Russian government decided on an
early end to the export duty waiver for Greenfield development in East
Siberia. As a result, Rosneft Oil Co. OJSC(7) declined 28 percent.
46
EASTERN EUROPEAN FUND
* Sberbank RF(8) continued to attract customer deposits and grow
retail loans, but shares ended the first half down 13 percent due
to anemic growth in corporate lending.
CURRENT OUTLOOK
OPPORTUNITIES
* Better relations between Russia and the U.S. may improve the
perception of U.S. investors of the balance of risks and
opportunities of investing in Russia's stock market.
* The massive Gulf of Mexico oil spill and the U.S. government's
subsequent ban on deepwater drilling may highlight the relative
cost advantages of Russian onshore producers and the valuation gap
to the global majors could begin to close.
* Adoption of a fiscal rule in Turkey may trigger sovereign-bond
credit rating upgrades to investment grade. The law, set to take
effect in 2011, aims at cutting the budget deficit to 1 percent of
GDP and the debt-to-GDP ratio to some 30 percent in five to ten
years.
THREATS
* Reliance on state support is potentially risky for minority
shareholders of Russian electricity distribution companies.
Minority shareholders may face a considerable dilution if the
state provides money for capital expenditure programs via
additional share issuance, as occurred for federal transmission
and hydro generation companies in 2009 -2010.
* The prospect of shale gas in Europe substituting export from the
former Soviet Union states has been given much favorable coverage
in the press. Unconventional gas resources in Europe, however, are
far smaller than those of North America and are unlikely to
achieve similar economies of scale.
* Severe heat and drought conditions prevailing in the European part
of Russia may affect wheat harvest and increase feedstock costs
for agricultural producers.
* The Polish government has taken advantage of improved market
conditions to shore up its budget deficit by continuing to tap
equity markets. A steady pipeline of state and private IPOs may
exceed demand for new equity offerings.
(1)The following countries are considered to be in the Eastern
European region: Albania, Armenia, Azerbaijan, Belarus, Bulgaria,
Croatia, Czech Republic, Estonia, FYR Macedonia, Georgia,
Hungary, Latvia, Lithuania, Moldova, Poland, Romania, Russia,
Slovakia, Slovenia, Turkey and Ukraine.
47
EASTERN EUROPEAN FUND
(2)BRIC refers to the emerging market countries Brazil, Russia,
India and China.
(3)This security comprised 2.26% of the fund's total net assets as
of 06/30/10.
(4)This security comprised 1.25% of the fund's total net assets as
of 06/30/10.
(5)This security comprised 4.84% of the fund's total net assets as
of 06/30/10.
(6)This security comprised 3.00% of the fund's total net assets as
of 06/30/10.
(7)This security comprised 4.28% of the fund's total net assets as
of 06/30/10.
(8)This security comprised 10.74% of the fund's total net assets as
of 06/30/10.
48
EASTERN EUROPEAN FUND
TOP 10 HOLDINGS BASED ON NET ASSETS June 30, 2010
(EXCLUDING REPURCHASE AGREEMENTS)
SBERBANK RF 10.74%
Commercial Banks - Non US
--------------------------------------------------------------
NOVATEK OAO 4.84%
Oil & Gas Exploration & Production
--------------------------------------------------------------
TURKIYE GARANTI BANKASI A.S. 4.79%
Commercial Banks - Non US
--------------------------------------------------------------
ROSNEFT OIL CO. OJSC 4.28%
Oil & Gas - Integrated
--------------------------------------------------------------
LUKOIL OAO 3.28%
Oil & Gas - Integrated
--------------------------------------------------------------
MECHEL 3.21%
Steel - Producers
--------------------------------------------------------------
GAZPROM OAO 3.00%
Oil & Gas - Integrated
--------------------------------------------------------------
VTB BANK OJSC 2.54%
Commercial Banks - Non US
--------------------------------------------------------------
X5 RETAIL GROUP N.V. 2.41%
Retail
--------------------------------------------------------------
NOVOLIPETSK STEEL 2.41%
Steel - Producers
--------------------------------------------------------------
TOTAL TOP TEN HOLDINGS 41.50%
COUNTRY DISTRIBUTION*
BASED ON TOTAL INVESTMENTS June 30, 2010
(EXCLUDING REPURCHASE AGREEMENT)
[Eastern European Fund Pie Chart]
Russia 60.1%
Turkey 18.9%
Poland 5.6%
Other 4.8%
Netherlands 4.1%
Hungary 3.5%
Canada 3.0%
* Country distribution shown is based on domicile and the locale of
company operations may be different.
49
GLOBAL EMERGING MARKETS FUND
MANAGEMENT TEAM'S PERSPECTIVE
INTRODUCTION
The investment objective of the Global Emerging Markets Fund (GEMFX)
is to achieve long-term capital growth by investing in a non-
diversified portfolio of the equity securities of companies located
in or with a significant business presence in emerging market
countries.(1)
PERFORMANCE GRAPH
GLOBAL EMERGING MARKETS FUND
[Global Emerging Markets Fund Graph]
MSCI Emerging
Global Emerging S&P 500 Markets Net Total
Date Markets Fund Index Return Index
---- --------------- ------- -----------------
02/24/05 10,000.00 $ 10,000.00 $ 10,000.00
02/28/05 10,180.00 10,210.33 10,196.56
03/31/05 9,370.00 10,029.72 9,522.68
04/30/05 9,020.00 9,839.59 9,267.07
05/31/05 9,190.00 10,152.39 9,589.64
06/30/05 9,440.00 10,166.93 9,915.45
07/31/05 10,230.00 10,544.87 10,608.51
08/31/05 10,520.00 10,448.60 10,699.37
09/30/05 11,470.00 10,533.18 11,695.59
10/31/05 10,650.00 10,357.49 10,931.16
11/30/05 11,440.00 10,748.84 11,835.44
12/31/05 12,298.06 10,752.65 12,534.99
01/31/06 13,908.39 11,037.34 13,935.03
02/28/06 13,764.80 11,067.20 13,918.54
03/31/06 13,805.82 11,204.94 14,041.19
04/30/06 14,759.72 11,355.30 15,040.99
05/31/06 13,077.58 11,028.89 13,465.14
06/30/06 12,995.53 11,043.54 13,432.22
07/31/06 13,251.95 11,111.61 13,624.53
08/31/06 13,672.48 11,375.59 13,971.64
09/30/06 13,569.91 11,668.56 14,087.99
10/31/06 14,287.90 12,048.56 14,756.92
11/30/06 15,241.79 12,277.30 15,853.90
12/31/06 16,305.69 12,449.49 16,567.76
01/31/07 16,206.06 12,637.57 16,389.35
02/28/07 16,128.57 12,391.14 16,292.08
03/31/07 16,593.50 12,529.43 16,940.86
04/30/07 17,301.96 13,084.26 17,725.17
05/31/07 17,910.80 13,540.37 18,603.10
06/30/07 18,729.95 13,315.56 19,475.14
07/31/07 20,091.53 12,903.22 20,502.70
08/31/07 19,615.53 13,096.35 20,066.98
09/30/07 21,785.19 13,585.63 22,283.04
10/31/07 24,220.53 13,801.70 24,768.06
11/30/07 22,183.70 13,224.46 23,012.33
12/31/07 22,722.72 13,132.94 23,093.03
01/31/08 19,244.61 12,345.31 20,211.25
02/29/08 20,151.36 11,944.58 21,703.09
03/31/08 18,635.61 11,892.88 20,554.58
04/30/08 20,219.02 12,471.97 22,222.67
05/31/08 20,584.43 12,633.50 22,634.92
06/30/08 18,567.94 11,569.45 20,377.38
07/31/08 17,038.66 11,472.17 19,608.75
08/31/08 15,116.90 11,638.20 18,042.48
09/30/08 12,044.80 10,602.32 14,885.04
10/31/08 8,038.89 8,821.87 10,811.31
11/30/08 6,983.28 8,188.66 9,997.46
12/31/08 7,267.85 8,274.94 10,777.19
01/31/09 6,608.39 7,578.31 10,081.18
02/28/09 6,223.70 6,774.02 9,512.50
03/31/09 6,883.17 7,366.33 10,879.54
04/30/09 7,693.76 8,070.74 12,689.97
05/31/09 9,150.08 8,521.63 14,858.29
06/30/09 8,847.82 8,538.65 14,658.12
07/31/09 9,946.93 9,183.65 16,306.38
08/31/09 10,056.84 9,514.75 16,248.04
09/30/09 10,166.75 9,869.55 17,722.87
10/31/09 9,988.15 9,686.44 17,744.79
11/30/09 10,785.00 10,267.31 18,506.99
12/31/09 10,922.39 10,465.54 19,237.88
01/31/10 10,249.18 10,089.63 18,164.95
02/28/10 10,427.79 10,401.74 18,228.85
03/31/10 11,279.60 11,029.19 19,700.54
04/30/10 11,238.38 11,203.36 19,939.21
05/31/10 10,359.09 10,309.69 18,185.40
06/30/10 10,276.66 9,770.72 18,051.75
AVERAGE ANNUAL PERFORMANCE For the Periods Ended
June 30, 2010
Six Month One Year Five Year Inception
Global Emerging Markets Fund
(Inception 2/24/05) (5.91)% 16.15% 1.71% 0.51%
-------------------------------------------------------------------------
S&P 500 Index (6.65)% 14.43% (0.79)% (0.43)%
-------------------------------------------------------------------------
MSCI Emerging Markets Net
Total Return Index (6.17)% 23.15% 12.72% 11.68%
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. Foreign and
emerging market investing involves special risks such as currency
fluctuation and less public disclosure, as well as economic and political
risk. 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. Returns for periods less than one year are not annualized.
The S&P 500 Index is a widely recognized capitalization-weighted index of
500 common stock prices in U.S. companies. The MSCI Emerging Markets Net
Total Return Index is a free float-adjusted market capitalization index
that is designed to measure equity market performance in emerging market
countries on a net return basis (i.e., reflects the minimum possible
dividend reinvestment after deduction of the maximum rate withholding
tax). The returns for the indexes reflect no deduction for fees, expenses
or taxes, except as noted above.
Pursuant to a voluntary arrangement, the Adviser has agreed to limit
total fund operating expenses (exclusive of acquired fund fees and
expenses, extraordinary expenses, taxes, brokerage commissions and
interest, and advisory fee performance adjustments, if any) to not exceed
3.15%. The Adviser can modify or terminate this arrangement at any time.
Please visit our website at www.usfunds.com for updated performance
information for different time periods.
50
GLOBAL EMERGING MARKETS FUND
THE SIX-MONTH PERIOD IN REVIEW - ECONOMIC AND POLITICAL ISSUES THAT
AFFECTED THE FUND
From the beginning of the year many investors began to feel
uncomfortable with the near-term prospects for China in light of
rapid real-estate appreciation that many labeled a dangerous
"bubble." Despite naysaying rhetoric, the Chinese economy continues
to grow, with exports rebounding early in the year after 16
consecutive months of declines.
In addition, the Beijing government remains committed to
recalibrating its economy toward domestic consumption that would, in
the long term, provide more stability than reliance on exports and
fixed-asset investments. This is why the government has increased
spending on social safety-net programs to encourage people to
increase spending.
Turkey seems to be the most vibrant among the European emerging
economies. GDP grew 11.7 percent in the first quarter alone, mainly
due to the strength of exports and robust domestic demand. In
addition, lower interest rates contributed to double-digit loan
growth in the first half of the year among the nation's banks.
The Russian government stimulated the country's struggling economy
by lowering interest rates and expanding the monetary base by 33
percent year over year in April. Industrial production in June
ticked up nearly 10 percent after expanding 12.6 percent in May,
while June unemployment dropped to 6.8 percent. Retail sales rose
during each of the six months, jumping 5.8 percent in June.
In Latin America, the performance was mixed in the first half of
2010. The most liquid market, Brazil, underperformed due to a
subdued outlook for commodities early in the year and new equity
issues coming to the market in abundance. By contrast, Chile
strongly outperformed and was the best performer in Latin America
during the period. Many local pension funds, which are the driving
force of the market, reduced international holdings and increased
local equity allocation.
Colombia also outperformed and is seen as one of the favorite
markets for many investors in light of the election result that
brought Mr. Juan Manuel Santos to power. Mr. Santos promises
continuation of market friendly policies of the outgoing President
Uribe.
51
GLOBAL EMERGING MARKETS FUND
INVESTMENT HIGHLIGHTS
OVERVIEW
The fund lost 5.91 percent for the six-month period ending June 30,
2010, compared to a negative 6.17 percent return for the MSCI
Emerging Markets Net Total Return Index, the fund's benchmark.
Because the fund is actively managed, and a holding period is
generally not a consideration in investment decisions, the portfolio
turnover rate may fluctuate from year to year as the fund adjusts
its portfolio composition. Its annual portfolio turnover was, and is
expected to continue to be, more than 100 percent.
STRENGTHS
* The fund was overweight Russian equities, which outperformed
during the first quarter. In addition, the fund was overweight
Mexico and Hungary, which, with returns of 9.99 percent and 9.61
percent, respectively, outperformed and were among the best
performers in the index.
* Although Brazil has been a laggard among Latin American countries
due to new equity issues and volatility in commodities, retail
stocks in that market outperformed. Lojas Renner S.A.(2)
registered a 24 percent appreciation in the first half of the
year.
* Baidu, Inc.,(3) a Chinese internet search engine, was another
significant contributor to performance as the company benefited
from troubles for Google, Inc.(4) early in the year. The stock
returned 69 percent in six months.
* Overweighting Turkey also helped the performance of the fund. That
market is seen as most robust among the European emerging markets.
One of the best performers was Turkiye Is Bankasi,(5) which
returned 45 percent to the fund.
WEAKNESSES
* In the second quarter, the fund was overweight Russia, Poland and
Hungary, all of which underperformed.
* The performance of the Chinese stocks was uneven. One of the
detractions from performance was Duoyuan Global Water, Inc.,(4) an
infrastructure play on water.
* The fund invested cautiously in the Greek equities, before they
found the bottom. As a result, National Bank of Greece S.A.(6)
returned a negative 41 percent.
52
GLOBAL EMERGING MARKETS FUND
CURRENT OUTLOOK
OPPORTUNITIES
* As the Chinese leadership embarked on the challenge of recalibrating
the economy away from fixed-asset investments toward domestic
consumption, the fund adjusted its portfolio holdings to capture this
trend. An overhaul of the social security system in China will likely
encourage greater consumption by households over time.
* Growth of per-capita income around the world has created opportunities
for protein producers, particularly in agriculture-rich countries like
Brazil and Australia. Demand for poultry, and to a lesser extent, for
pork and beef are likely to remain strong for years to come.
* Urbanization in China remains an important trend - the country is
preparing for 90 million people to move to cities by 2015. This will
be supportive of resources such as iron ore and copper.
THREATS
* The talk about dangers in the Chinese real estate has put some
investors on edge about the prospects of a correction. In the event of
a significant correction, demand for many global commodities would
likely fall precipitously.
* The progress of recovery in the U.S. will have impact on China. A
slowdown, or worse a return to recession, in the U.S. in the second
half of 2010 would have an adverse effect on China's GDP growth.
* Although the sovereign crisis in Europe has been centered on the PIGS
(Portugal, Ireland, Greece and Spain), the situation in Hungary also
remains precarious in light of mixed messages coming out of the new
government. A deterioration of the climate in Hungary would impact
sentiment for other countries in the region.
* Escalation of violence in Mexico does not provide a level of comfort
for investors in that country.
(1)Emerging market countries are those countries defined as such by
the World Bank, the International Finance Corporation, the United
Nations or the European Bank for Reconstruction and Development
or included in the MSCI Emerging Markets Index.
(2)This security comprised 3.18% of the fund's total net assets as
of 06/30/10.
(3)This security comprised 1.74% of the fund's total net assets as
of 06/30/10.
(4)The fund did not hold this security as of 06/30/10.
(5)This security comprised 1.15% of the fund's total net assets as
of 06/30/10.
(6)This security comprised 0.92% of the fund's total net assets as
of 06/30/10.
53
GLOBAL EMERGING MARKETS FUND
TOP 10 HOLDINGS BASED ON NET ASSETS June 30, 2010
(EXCLUDING REPURCHASE AGREEMENTS)
RANDGOLD RESOURCES LTD. 4.03%
Gold Mining
--------------------------------------------------------------
LOJAS RENNER S.A. 3.18%
Department Stores
--------------------------------------------------------------
NASPERS LTD. 2.57%
Multimedia
--------------------------------------------------------------
TNK-BP HOLDING 2.45%
Oil & Gas - Integrated
--------------------------------------------------------------
SAMSUNG ELECTRONICS CO., LTD. 2.44%
Electronics & Components
--------------------------------------------------------------
WAL-MART DE MEXICO SAB DE CV 2.33%
Retail
--------------------------------------------------------------
ELDORADO GOLD CORP. 2.29%
Gold Mining
--------------------------------------------------------------
SPDR GOLD TRUST 2.27%
Exchange-Traded Fund
--------------------------------------------------------------
OPTO CIRCUITS INDIA LTD. 2.00%
Healthcare Equipment & Services
--------------------------------------------------------------
CTRIP.COM INTERNATIONAL LTD. 1.92%
E-Commerce
--------------------------------------------------------------
TOTAL TOP TEN HOLDINGS 25.48%
COUNTRY DISTRIBUTION*
BASED ON TOTAL INVESTMENTS June 30, 2010
(EXCLUDING REPURCHASE AGREEMENT)
[Global Emerging Markets Fund Pie Chart]
People's Republic of China 14.0%
Brazil 13.0%
Other 12.0%
Russia 8.5%
Korea, Republic Of 7.8%
United States 7.3%
Mexico 6.6%
South Africa 5.3%
Hong Kong 4.9%
Canada 4.9%
Jersey, Channel Islands 4.5%
India 4.1%
Turkey 3.7%
Poland 3.4%
* Country distribution shown is based on domicile and the locale of
company operations may be different.
54
CHINA REGION FUND
MANAGEMENT TEAM'S PERSPECTIVE
INTRODUCTION
The China Region Fund (USCOX) seeks long-term growth of capital. The
fund invests in both established and emerging companies registered
and operating in the China region.(1)
PERFORMANCE GRAPH
CHINA REGION FUND
[China Region Fund Graph]
MSCI All Country
Hang Seng Far East
China Region Composite Free ex
Date Fund Index* Japan Index
---- ---- --------- ----------------
06/30/00 $ 10,000.00 $ 10,000.00 $ 10,000.00
07/31/00 10,049.10 10,469.14 9,627.77
08/31/00 9,836.33 10,639.41 9,497.37
09/29/00 9,018.00 9,735.60 8,388.55
10/31/00 8,216.04 9,206.05 7,724.31
11/30/00 7,774.14 8,601.62 7,330.55
12/31/00 7,939.44 9,238.46 7,309.35
01/31/01 8,270.94 9,833.16 8,286.95
02/28/01 7,856.57 9,170.44 7,880.51
03/30/01 7,790.27 7,923.93 7,017.34
04/30/01 8,105.19 8,393.71 7,027.92
05/31/01 8,370.39 8,419.27 6,959.11
06/30/01 8,154.92 8,316.49 6,800.98
07/31/01 7,475.34 7,835.82 6,529.71
08/31/01 6,895.22 7,082.92 6,412.11
09/30/01 6,116.19 6,343.19 5,383.76
10/31/01 6,348.24 6,507.67 5,653.11
11/30/01 6,795.77 7,205.96 6,423.19
12/31/01 6,895.22 7,277.36 7,003.37
01/31/02 7,060.97 6,933.66 7,285.44
02/28/02 6,978.09 6,824.29 7,296.81
03/31/02 7,326.17 7,167.54 7,812.41
04/30/02 7,525.07 7,480.78 7,904.81
05/31/02 7,508.49 7,408.84 7,723.42
06/30/02 7,259.87 6,978.63 7,298.09
07/31/02 6,779.19 6,696.10 7,016.41
08/31/02 6,530.57 6,516.46 6,849.20
09/30/02 5,983.59 5,920.19 6,058.59
10/31/02 6,033.31 6,119.81 6,380.43
11/30/02 6,315.09 6,514.18 6,693.54
12/31/02 6,049.89 6,109.15 6,229.50
01/31/03 6,232.21 6,131.63 6,302.99
02/28/03 6,232.21 6,063.29 5,993.59
03/31/03 5,967.01 5,764.60 5,706.28
04/30/03 6,000.16 5,787.33 5,887.03
05/31/03 6,679.74 6,334.32 6,367.21
06/30/03 6,911.79 6,453.21 6,726.07
07/31/03 7,558.22 6,861.67 7,286.79
08/31/03 8,138.34 7,430.08 7,801.25
09/30/03 8,403.54 7,723.05 7,820.21
10/31/03 9,845.57 8,397.95 8,477.11
11/30/03 10,127.35 8,460.20 8,341.51
12/31/03 10,958.44 8,804.55 8,769.44
01/31/04 11,025.26 9,267.48 9,336.08
02/29/04 11,643.34 9,700.81 9,671.67
03/31/04 11,259.13 8,920.80 9,453.00
04/30/04 10,123.19 8,291.78 8,880.06
05/31/04 10,073.08 8,470.16 8,636.09
06/30/04 9,789.09 8,484.23 8,537.30
07/31/04 9,688.86 8,484.88 8,281.82
08/31/04 9,772.39 8,845.35 8,685.66
09/30/04 10,440.59 9,100.64 8,966.38
10/31/04 10,457.29 9,083.72 8,998.88
11/30/04 11,125.49 9,846.76 9,762.09
12/31/04 11,419.78 9,934.72 10,017.57
01/31/05 11,043.68 9,586.11 10,075.41
02/28/05 12,052.31 9,991.25 10,638.69
03/31/05 11,676.21 9,508.60 10,119.35
04/30/05 11,471.06 9,690.03 9,990.98
05/31/05 11,317.20 9,676.66 10,180.86
06/30/05 11,744.59 9,955.40 10,390.83
07/31/05 12,171.98 10,454.03 11,027.10
08/31/05 12,103.60 10,428.60 10,625.65
09/30/05 12,770.32 10,779.68 11,135.48
10/31/05 12,001.02 10,005.22 10,431.18
11/30/05 12,548.08 10,476.13 11,164.27
12/31/05 13,553.02 10,588.74 11,806.67
01/31/06 14,973.19 11,380.15 12,630.53
02/28/06 14,797.86 11,559.57 12,583.88
03/31/06 15,832.31 11,706.10 12,699.99
04/30/06 16,901.82 12,120.66 13,583.97
05/31/06 15,779.71 11,651.57 12,617.27
06/30/06 15,271.25 11,845.90 12,512.25
07/31/06 15,113.46 12,153.94 12,483.78
08/31/06 15,253.72 12,421.85 12,791.08
09/30/06 15,516.71 12,634.33 13,143.92
10/31/06 16,025.17 13,186.66 13,479.62
11/30/06 17,234.95 14,017.56 14,539.19
12/31/06 18,680.02 15,186.77 15,167.94
01/31/07 18,395.10 15,052.04 14,901.66
02/28/07 18,110.18 14,696.54 15,011.39
03/31/07 18,608.79 14,954.72 15,305.04
04/30/07 19,356.70 15,388.41 15,829.15
05/31/07 21,030.61 15,828.27 16,661.50
06/30/07 22,348.36 16,766.02 17,539.57
07/31/07 23,879.80 18,105.45 18,764.53
08/31/07 24,823.59 18,743.46 18,499.24
09/30/07 29,613.80 21,282.01 20,618.56
10/31/07 34,012.24 24,470.33 22,667.27
11/30/07 29,649.41 21,937.84 20,530.89
12/31/07 28,634.75 21,268.66 20,230.25
01/31/08 24,206.92 17,792.78 17,411.17
02/28/08 24,971.12 18,782.38 18,590.65
03/31/08 22,161.58 17,475.28 17,588.28
04/30/08 23,465.21 19,557.99 18,919.91
05/31/08 22,813.40 18,880.46 18,393.83
06/30/08 20,430.91 16,805.13 16,326.37
07/31/08 19,509.39 17,060.87 15,964.26
08/31/08 17,981.00 15,804.15 14,715.24
09/30/08 15,463.66 13,060.49 12,269.49
10/31/08 12,586.70 10,127.11 9,360.88
11/30/08 11,867.46 10,193.82 8,833.70
12/31/08 12,564.22 10,783.02 9,718.11
01/31/09 11,485.36 9,988.04 9,138.61
02/28/09 11,080.79 9,625.00 8,571.41
03/31/09 12,519.27 10,344.04 9,757.77
04/30/09 13,957.75 11,656.73 11,337.68
05/31/09 16,272.81 13,746.77 12,856.54
06/30/09 15,913.19 14,092.55 12,795.00
07/31/09 17,396.62 15,700.47 14,475.04
08/31/09 16,093.00 14,817.07 13,928.48
09/30/09 17,126.90 15,626.22 15,090.61
10/31/09 17,239.29 16,275.91 15,068.37
11/30/09 18,520.43 16,497.16 15,361.74
12/31/09 18,790.15 16,592.62 16,035.67
01/31/10 17,284.24 15,321.17 15,037.83
02/28/10 17,936.05 15,744.15 15,077.96
03/31/10 18,767.67 16,360.66 16,117.64
04/30/10 18,677.77 16,220.68 16,417.70
05/31/10 17,598.91 15,014.45 14,958.50
06/30/10 17,891.10 15,215.08 15,134.62
AVERAGE ANNUAL PERFORMANCE For the Periods Ended
June 30, 2010
Six Month One Year Five Year Ten Year
China Region Fund (4.78)% 12.43% 8.78% 5.99%
- -----------------------------------------------------------------------
Hang Seng Composite Index* (8.30)% 7.97% 8.85% 4.28%
- -----------------------------------------------------------------------
MSCI All Country Far East Free
ex Japan Index* (5.62)% 18.29% 7.81% 4.23%
* These are not total returns. These returns reflect simple
appreciation only and do not reflect dividend reinvestment.
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. Returns for periods less than one year are not annualized.
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 MSCI All Country Far East Free ex Japan Index is a free
float-adjusted market capitalization-weighted index that is designed
to measure the equity market performance of the Far East, excluding
Japan. The index consists of the following developed and emerging
market country indices: China, Hong Kong, Indonesia, Korea, Malaysia,
New Zealand, Philippines, Singapore, Taiwan and Thailand. The returns
for the indexes reflect no deduction for fees, expenses or taxes.
Pursuant to a voluntary arrangement, the Adviser has agreed to limit
total fund operating expenses (exclusive of acquired fund fees and
expenses, extraordinary expenses, taxes, brokerage commissions and
interest, and advisory fee performance adjustments, if any) to not
exceed 2.55%. The Adviser can modify or terminate this arrangement at
any time.
Please visit our website at www.usfunds.com for updated performance
information for different time periods.
55
CHINA REGION FUND
THE SIX-MONTH PERIOD IN REVIEW - ECONOMIC AND POLITICAL ISSUES THAT
AFFECTED THE FUND
China's swift action in addressing the financial crisis in 2008
helped global economies resume growth in 2009. China's economy grew
9.1 percent in 2009 and accelerated this annual pace in the first
quarter of 2010 to 11.9 percent. Beginning in mid-2009, concerns
arose that China's economy was recovering too quickly. The central
government stepped in to tamp down growth via a series of policy
steps that included removing bank liquidity, reducing bank lending
and slowing property price momentum.
After the massive investment in infrastructure in 2009, fixed-asset
investment (FAI) was bound to slow down. For 2009, year-over-year
FAI was up 30.5 percent and has since slowed to 25.5 percent in June
2010. With government concerns about overbuilding, FAI should
moderate further in the second half of 2010.
Exports have been positive for the last six months. This reflects
somewhat improved economic conditions in the U.S. and Europe, but
more accurately reflects the increasing trade within Asia.
Retail sales are higher than a year ago. The Beijing government sees
consumption as a long-term driver of GDP growth and has increased
spending on social safety net programs to encourage people to save
less and spend more.
Money supply as measured by M2(2) was very strong in 2009, growing
at an average rate of 27.7 percent. It has since moderated to 18.5
percent as of June 2010.
INVESTMENT HIGHLIGHTS
OVERVIEW
The fund returned negative 4.78 percent for the six-month time
period, compared to a return of negative 6.64 percent (total return
basis) for the Hang Seng Composite Index (HSCI), its benchmark.
Because the fund is actively managed, and a holding period is
generally not a consideration in investment decisions, the portfolio
turnover rate may fluctuate from year to year as the fund adjusts
its portfolio composition. Its annual portfolio turnover was, and is
expected to continue to be, more than 100 percent.
56
CHINA REGION FUND
STRENGTHS
* Country allocation helped the fund outperform the benchmark. The
fund allocated more to Indonesia and South Korea while lowering
exposure to Hong Kong and China stocks. Positive contributors to
performance from Indonesia included PT Astra International Tbk,(3)
PT Unilever Indonesia Tbk,(4) PT Indofood Sukses Makmur Tbk(5) and
Bank Mandiri Tbk PT.(6) In South Korea, Samsung Techwin Co.,
Ltd.(7) was the best contributor. Indonesia is an internal growth
story with less reliance on exports to the U.S. and Europe than
many of its Asian neighbors. South Korea benefitted from
stronger-than-expected growth.
* The focus on consumption as a driver of GDP growth was reflected
in two of the fund's best performing Hong Kong stocks: Belle
International Holdings Ltd.(8) and Lianhua Supermarket Holdings
Co., Ltd.(9) Both stocks grew to large holdings as sales and
earnings rose and this was reflected in share price performance.
* Travel is another area benefitting from a rising middle class.
After buying a home and a car, travel is most coveted by this
burgeoning group. Two fund holdings that benefitted from this
trend were Home Inns & Hotels Management, Inc.(10) and Wynn Macau
Ltd.(11)
WEAKNESSES
* The best performing sector in the fund's benchmark index, the
HSCI, was telecommunications. The fund was underweight in this
sector, however, given the anemic growth in revenues and earnings.
* Technology was an underperforming sector due to flat earnings
growth, which impacted holdings in the fund such as Tencent
Holdings Ltd.(12)
CURRENT OUTLOOK
OPPORTUNITIES
* In the second half of 2010, the question is how much China's
economy will slow and how much of that has already been priced
into the markets. With growing concerns about a slowdown or even a
"double-dip" recession in the U.S. and Europe, China may ease up
on its policies directed at slowing the economy. If that is the
case, conditions should not get worse and the stock markets may be
poised for a rally in the second half of the year.
* Exports continue to surprise to the upside, reducing pressure on
the government to keep up a high fixed asset investment to
maintain GDP growth at the 8 percent level.
57
CHINA REGION FUND
* Urbanization remains an opportunity, as China expects another 90
million people to move to cities by 2015. This is a long-term
positive for iron ore, copper and other resources.
THREATS
* The big threats of 2009 - deflation and deceleration - have been
replaced by concerns over inflation and "imbalance." While China's
inflation fell during most of 2009, this should reverse in 2010 as
the global economy recovers. Imbalance refers to China's
overreliance on fixed-asset investment, which was the biggest
contributor to GDP in 2009. This is not healthy for the economy in
the long run. China needs more balance in its GDP components,
meaning consumption has to grow.
* One key risk is related to inflation - the possibility of more
aggressive policy tightening as CPI(13) rises. While there is no
clear consensus as to what level CPI needs to rise before interest
rates are raised, many China strategists believe action would
result if CPI hits 3 percent.
* A threat external to China is the recovery in the United States.
Some think that a slowdown or a recession is possible in the
second half of 2010. If that happens, China's GDP growth could
weaken.
(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. M1 money supply
includes funds that are readily accessible for spending. M2
includes everything in M1 and also all time-related deposits,
savings deposits, and non-institutional money-market funds.
(3)This security comprised 2.76% of the fund's total net assets as
of 06/30/10.
(4)This security comprised 1.56% of the fund's total net assets as
of 06/30/10.
(5)This security comprised 2.66% of the fund's total net assets as
of 06/30/10.
(6)This security comprised 2.60% of the fund's total net assets as
of 06/30/10.
(7)This security comprised 2.71% of the fund's total net assets as
of 06/30/10.
(8)This security comprised 2.98% of the fund's total net assets as
of 06/30/10.
(9)This security comprised 2.30% of the fund's total net assets as
of 06/30/10.
(10)This security comprised 1.23% of the fund's total net assets as
of 06/30/10.
(11)This security comprised 1.24% of the fund's total net assets as
of 06/30/10.
(12)The fund did not hold this security as of 06/30/10.
(13)The Consumer Price Index (CPI) is one of the most widely
recognized price measures for tracking the price of a market
basket of goods and services purchased by individuals. The
weights of components are based on consumer spending patterns.
58
CHINA REGION FUND
COUNTRY DISTRIBUTION*
BASED ON TOTAL INVESTMENTS June 30, 2010
(EXCLUDING REPURCHASE AGREEMENT)
[Pie Chart]
People's Republic of China 41.1%
Hong Kong 23.2%
Indonesia 15.1%
Korea, Republic Of 7.5%
Other 5.1%
United States 5.0%
Canada 3.0%
* Country distribution shown is based on domicile and not intended
to conform to the China region definition in the prospectus.
59
CHINA REGION FUND
TOP 10 HOLDINGS BASED ON NET ASSETS June 30, 2010
(EXCLUDING REPURCHASE AGREEMENTS)
BELLE INTERNATIONAL HOLDINGS LTD. 2.98%
Retail
--------------------------------------------------------------
PT ASTRA INTERNATIONAL TBK 2.76%
Auto Manufacturers
--------------------------------------------------------------
SAMSUNG TECHWIN CO., LTD. 2.71%
Electronics & Components
--------------------------------------------------------------
CHINA RESOURCES ENTERPRISE LTD. 2.70%
Diversified Operations
--------------------------------------------------------------
PT INDOFOOD SUKSES MAKMUR TBK 2.66%
Food & Beverages
--------------------------------------------------------------
BANK MANDIRI TBK PT 2.60%
Commercial Banks - Non US
--------------------------------------------------------------
ZHAOJIN MINING INDUSTRY CO., LTD. 2.46%
Gold Mining
--------------------------------------------------------------
SPDR GOLD TRUST 2.39%
Exchange-Traded Fund
--------------------------------------------------------------
CTRIP.COM INTERNATIONAL LTD. 2.37%
E-Commerce
--------------------------------------------------------------
LIANHUE SUPERMARKET HOLDINGS CO., LTD. 2.30%
Food-Retail
--------------------------------------------------------------
TOTAL TOP TEN HOLDINGS 25.93%
60
EXPENSE EXAMPLE (UNAUDITED) June 30, 2010
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.
61
EXPENSE EXAMPLE (UNAUDITED) June 30, 2010
- -----------------------------------------------------------------------------------
SIX MONTHS ENDED JUNE 30, 2010 BEGINNING ENDING
ACCOUNT VALUE ACCOUNT VALUE EXPENSES
JANUARY 1, JUNE 30, PAID DURING
2010 2010 PERIOD
- -----------------------------------------------------------------------------------
U.S. TREASURY SECURITIES CASH FUND*
Based on Actual Fund Return $1,000.00 $1,000.00 $ 0.64
Based on Hypothetical 5% Yearly Return $1,000.00 $1,024.15 $ 0.65
- -----------------------------------------------------------------------------------
U.S. GOVERNMENT SECURITIES SAVINGS
FUND*
Based on Actual Fund Return $1,000.00 $1,000.00 $ 0.79
Based on Hypothetical 5% Yearly Return $1,000.00 $1,024.00 $ 0.80
- -----------------------------------------------------------------------------------
NEAR-TERM TAX FREE FUND*
Based on Actual Fund Return $1,000.00 $1,021.80 $ 2.26
Based on Hypothetical 5% Yearly Return $1,000.00 $1,022.56 $ 2.26
- -----------------------------------------------------------------------------------
TAX FREE FUND*
Based on Actual Fund Return $1,000.00 $1,029.20 $ 3.52
Based on Hypothetical 5% Yearly Return $1,000.00 $1,021.32 $ 3.51
- -----------------------------------------------------------------------------------
ALL AMERICAN EQUITY FUND*
Based on Actual Fund Return $1,000.00 $ 958.20 $ 9.52
Based on Hypothetical 5% Yearly Return $1,000.00 $1,015.08 $ 9.79
- -----------------------------------------------------------------------------------
HOLMES GROWTH FUND*
Based on Actual Fund Return $1,000.00 $ 980.10 $ 9.13
Based on Hypothetical 5% Yearly Return $1,000.00 $1,015.57 $ 9.30
- -----------------------------------------------------------------------------------
GLOBAL MEGATRENDS FUND INVESTOR CLASS*
Based on Actual Fund Return $1,000.00 $ 883.40 $10.32
Based on Hypothetical 5% Yearly Return $1,000.00 $1,013.84 $11.03
GLOBAL MEGATRENDS FUND INSTITUTIONAL
CLASS**
Based on Actual Fund Return $1,000.00 $ 919.10 $ 7.85
Based on Hypothetical 5% Yearly Return $1,000.00 $1,016.71 $ 8.15
- -----------------------------------------------------------------------------------
GLOBAL RESOURCES FUND INVESTOR CLASS*
Based on Actual Fund Return $1,000.00 $ 936.70 $ 8.21
Based on Hypothetical 5% Yearly Return $1,000.00 $1,016.31 $ 8.55
GLOBAL RESOURCES FUND INSTITUTIONAL
CLASS**
Based on Actual Fund Return $1,000.00 $ 937.30 $ 5.38
Based on Hypothetical 5% Yearly Return $1,000.00 $1,019.24 $ 5.61
- -----------------------------------------------------------------------------------
WORLD PRECIOUS MINERALS FUND INVESTOR
CLASS*
Based on Actual Fund Return $1,000.00 $1,028.70 $ 9.41
Based on Hypothetical 5% Yearly Return $1,000.00 $1,015.52 $ 9.35
WORLD PRECIOUS MINERALS FUND
INSTITUTIONAL CLASS**
Based on Actual Fund Return $1,000.00 $1,034.60 $ 6.05
Based on Hypothetical 5% Yearly Return $1,000.00 $1,018.84 $ 6.01
- -----------------------------------------------------------------------------------
GOLD AND PRECIOUS METALS FUND*
Based on Actual Fund Return $1,000.00 $1,072.40 $ 9.71
Based on Hypothetical 5% Yearly Return $1,000.00 $1,015.42 $ 9.44
- -----------------------------------------------------------------------------------
EASTERN EUROPEAN FUND*
Based on Actual Fund Return $1,000.00 $ 896.80 $ 8.79
Based on Hypothetical 5% Yearly Return $1,000.00 $1,015.52 $ 9.35
- -----------------------------------------------------------------------------------
62
EXPENSE EXAMPLE (UNAUDITED) June 30, 2010
- -----------------------------------------------------------------------------------
SIX MONTHS ENDED JUNE 30, 2010 BEGINNING ENDING
ACCOUNT VALUE ACCOUNT VALUE EXPENSES
JANUARY 1, JUNE 30, PAID DURING
2010 2010 PERIOD
- -----------------------------------------------------------------------------------
GLOBAL EMERGING MARKETS FUND*
Based on Actual Fund Return $1,000.00 $ 940.90 $14.05
Based on Hypothetical 5% Yearly Return $1,000.00 $1,010.31 $14.55
- -----------------------------------------------------------------------------------
CHINA REGION FUND*
Based on Actual Fund Return $1,000.00 $ 952.20 $10.79
Based on Hypothetical 5% Yearly Return $1,000.00 $1,013.74 $11.13
- -----------------------------------------------------------------------------------
<FN>
*These calculations are based on expenses incurred in the most
recent fiscal half-year. The funds' Investor Class's annualized
expense ratios (after reimbursements and offsets) for the six-month
period ended June 30, 2010, were 0.13%, 0.16%, 0.45%, 0.70%, 1.96%,
1.86%, 2.21%, 1.71%, 1.87%, 1.89%, 1.87%, 2.92% and 2.23%,
respectively, for the U.S. Treasury Securities Cash, U.S. Government
Securities Savings, Near-Term Tax Free, Tax Free, All American
Equity, Holmes Growth, Global MegaTrends, Global Resources, World
Precious Minerals, Gold and Precious Metals, Eastern European,
Global Emerging Markets and China Region 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 181, the number of days in the most recent fiscal half-year, then
divided by 365 days in the current fiscal year.
**These calculations are based on expenses incurred in the period
from March 1, 2010 to June 30, 2010. The funds' Institutional
Class's annualized expense ratios (after reimbursements and offsets)
for the four-month period ended June 30, 2010, were 1.63%, 1.12% and
1.20%, respectively, for the Global MegaTrends, Global Resources and
World Precious Minerals 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 122, the number
of days in the period, then divided by 365 days in the current
fiscal year.
</FN>
63
U.S. TREASURY SECURITIES CASH FUND
PORTFOLIO OF INVESTMENTS (UNAUDITED) June 30, 2010
UNITED STATES
GOVERNMENT COUPON MATURITY PRINCIPAL
OBLIGATIONS 56.99% RATE DATE AMOUNT VALUE
UNITED STATES TREASURY BILLS 56.99%
- -------------------------------------------------------------------------------------
Yield 0.15% 07/01/10 $ 20,000,000 $ 20,000,000
Yield 0.15% 07/08/10 10,000,000 9,999,718
Yield 0.15% 07/15/10 10,000,000 9,999,436
Yield 0.16% 07/29/10 20,000,000 19,997,511
- -------------------------------------------------------------------------------------
TOTAL UNITED STATES GOVERNMENT OBLIGATIONS 59,996,665
- -------------------------------------------------------------------------------------
(cost $59,996,665)
REPURCHASE AGREEMENTS 62.01%
Joint Tri-Party Repurchase Agreements,
06/30/10, collateralized by U.S.
Treasury securities held in joint
tri-party repurchase accounts:
0.01% Banc of America Securities LLC
Merrill Lynch, repurchase price
$19,500,005 0.01% 07/01/10 19,500,000 19,500,000
0.01% Credit Suisse Securities USA
LLC, repurchase price $25,778,803 0.01% 07/01/10 25,778,795 25,778,795
0.02% UBS Financial Securities,
Inc., repurchase price $20,000,011 0.02% 07/01/10 20,000,000 20,000,000
- -------------------------------------------------------------------------------------
TOTAL REPURCHASE AGREEMENTS 65,278,795
- -------------------------------------------------------------------------------------
(cost $65,278,795)
- -------------------------------------------------------------------------------------
TOTAL INVESTMENTS 119.00% 125,275,460
- -------------------------------------------------------------------------------------
(cost $125,275,460)
Other assets and liabilities, net (19.00)% (20,002,732)
------------
NET ASSETS 100% $105,272,728
------------
See notes to portfolios of investments and notes to financialstatements.
64
U.S. GOVERNMENT SECURITIES SAVINGS FUND
PORTFOLIO OF INVESTMENTS (UNAUDITED) June 30, 2010
UNITED STATES
GOVERNMENT AND AGENCY COUPON MATURITY PRINCIPAL
OBLIGATIONS 100.03% RATE DATE AMOUNT VALUE
FEDERAL FARM CREDIT BANK 18.89%
- ------------------------------------------------------------------------------------
Discount Notes:
Yield 0.01% 07/01/10 $ 20,000,000 $ 20,000,000
Fixed Rate:
2.88% 09/22/10 5,000,000 5,029,788
Variable Rates:
0.18% 09/16/10 10,000,000 9,998,944
0.65% 10/15/10 1,350,000 1,351,514
0.35% 11/02/10 1,725,000 1,725,479
0.42% 07/01/11 5,000,000 5,007,104
------------
43,112,829
FEDERAL HOME LOAN BANK 76.76%
- ------------------------------------------------------------------------------------
Discount Notes:
Yield 0.02% 07/01/10 60,000,000 60,000,000
Yield 0.06% 07/07/10 17,945,000 17,944,821
Yield 0.16% 07/09/10 10,000,000 9,999,644
Yield 0.11% 07/14/10 32,045,000 32,043,745
Yield 0.19% 07/23/10 3,850,000 3,849,565
Yield 0.11% 08/04/10 11,300,000 11,298,826
Yield 0.22% 09/02/10 931,000 930,642
Yield 0.13% 09/10/10 10,514,000 10,511,304
Yield 0.17% 09/22/10 2,408,000 2,407,056
Yield 0.23% 11/24/10 5,000,000 4,995,438
Fixed Rates:
4.13% 08/13/10 2,000,000 2,008,203
4.75% 08/13/10 2,450,000 2,463,166
0.65% 05/19/11 2,000,000 1,999,823
Variable Rates:
0.20% 07/13/10 10,000,000 9,999,992
0.24% 11/08/10 1,250,000 1,249,237
0.20% 05/06/11 3,500,000 3,498,325
------------
175,199,787
UNITED STATES TREASURY BILL 4.38%
- ------------------------------------------------------------------------------------
Yield 0.11% 07/01/10 10,000,000 10,000,000
- ------------------------------------------------------------------------------------
TOTAL INVESTMENTS 100.03% 228,312,616
- ------------------------------------------------------------------------------------
(cost $228,312,616)
Other assets and liabilities, net
(0.03)% (70,369)
------------
NET ASSETS 100% $228,242,247
------------
See notes to portfolios of investments and notes to financial statements.
65
NEAR-TERM TAX FREE FUND
PORTFOLIO OF INVESTMENTS (UNAUDITED) June 30, 2010
COUPON MATURITY PRINCIPAL
MUNICIPAL BONDS 88.61% RATE DATE AMOUNT VALUE
ALABAMA 5.11%
- ---------------------------------------------------------------------------------------
Alabama State Public School & College
Authority 5.00% 12/01/16 $ 290,000 $ 334,127
Bessemer, Alabama Water Revenue 4.00% 01/01/16 300,000 286,311
Jasper Alabama Water Works & Sewer
Board, Inc., Utilities Revenue,
Series A 3.00% 06/01/15 90,000 91,646
Jasper Alabama Water Works & Sewer
Board, Inc., Utilities Revenue,
Series A 3.00% 06/01/16 90,000 89,998
Mountain Brook City Board of Education
Capital Outlay 4.00% 02/15/15 200,000 217,890
University of Alabama at Birmingham,
Hospital Revenue, Series A 5.00% 09/01/15 300,000 328,287
-----------
1,348,259
ALASKA 1.22%
- ---------------------------------------------------------------------------------------
Alaska Municipal Bond Bank Authority,
Series A 4.00% 02/01/16 300,000 322,287
ARIZONA 5.13%
- ---------------------------------------------------------------------------------------
Arizona Board Regents Certificates of
Participation, Series B 4.50% 06/01/16 200,000 217,128
Arizona Health Facilities Authority
Revenues, Series D 5.00% 01/01/14 250,000 270,220
Arizona School Facilities Board
Certificates,
Series A-1 5.00% 09/01/17 325,000 352,092
Arizona State Transportation Board
Excise Tax Revenue 5.00% 07/01/17 175,000 201,915
Pima County Unified School District,
GO Unlimited, Refunding 3.70% 07/01/12 300,000 314,676
-----------
1,356,031
CALIFORNIA 2.18%
- ---------------------------------------------------------------------------------------
San Diego, California Community College
District, Capital Appreciation,
Election 2002, GO Unlimited (ZCB) 4.34%(1) 05/01/15 300,000 259,401
Vernon, California Electric Systems
Revenue, Series A 3.75% 08/01/13 300,000 315,735
-----------
575,136
CONNECTICUT 1.85%
- ---------------------------------------------------------------------------------------
Connecticut State, Series D,
GO Unlimited 5.38% 11/15/18 250,000 277,597
Connecticut State, Series E,
GO Unlimited 5.13% 11/15/14 200,000 211,408
-----------
489,005
See notes to portfolios of investments and notes to financial statements.
66
NEAR-TERM TAX FREE FUND
PORTFOLIO OF INVESTMENTS (UNAUDITED) June 30, 2010
COUPON MATURITY PRINCIPAL
MUNICIPAL BONDS RATE DATE AMOUNT VALUE
DISTRICT OF COLUMBIA 2.49%
- --------------------------------------------------------------------------------------
District of Columbia Certifications of
Participation 4.00% 01/01/14 $ 250,000 $ 262,187
Washington D.C. Convention Center
Authority Dedicated Tax Revenue,
Refunding, Series A 5.00% 10/01/13 110,000 119,854
Washington D.C. Convention Center
Authority Dedicated Tax Revenue,
Refunding, Series A 5.00% 10/01/16 250,000 275,245
-----------
657,286
FLORIDA 5.71%
- --------------------------------------------------------------------------------------
Florida State Board of Education
Lottery Revenue, Series A 4.00% 07/01/14 300,000 326,847
Fort Pierce, Florida Stormwater
Utilities Revenue 4.50% 10/01/17 255,000 262,657
Orange County, Florida Tourist
Development Tax Revenue, Refunding 5.00% 10/01/10 300,000 302,391
Orange County, Florida Tourist
Development Tax Revenue, Refunding 5.00% 10/01/14 260,000 290,961
Reedy Creek, Florida Improvement
District Utilities Revenue, Refunded,
Series 2 5.00% 10/01/16 300,000 324,777
-----------
1,507,633
GEORGIA 2.65%
- --------------------------------------------------------------------------------------
Atlanta, Georgia Water & Wastewater
Revenue, Series B 3.50% 11/01/13 400,000 421,676
Emanuel County Georgia Hospital
Authority Revenue Anticipation
Certificates 4.30% 07/01/17 250,000 278,590
-----------
700,266
ILLINOIS 11.23%
- --------------------------------------------------------------------------------------
Aurora, Illinois, Series B,
GO Unlimited 3.00% 12/30/15 200,000 211,084
Chicago, Illinois Sales Tax Revenue 5.50% 01/01/15 350,000 399,563
Chicago, Illinois, Direct Access Bond,
Series E-1 B, GO Unlimited 4.00% 01/01/19 200,000 206,760
Chicago, Illinois, Unrefunded Balance,
Series B 5.13% 01/01/15 325,000 368,521
Dundee Township, GO Unlimited 5.00% 12/01/13 240,000 265,152
Illinois Finance Authority Revenue,
Refunding 5.00% 07/01/16 390,000 423,614
Illinois State Sales Tax Revenue 5.00% 06/15/14 200,000 221,508
Illinois State Toll Highway Authority,
Toll Highway Revenue, Series A 5.00% 01/01/16 200,000 222,904
Illinois State, Refunding,
GO Unlimited 5.00% 01/01/16 300,000 326,658
State of Illinois, First Series,
Refunding 5.50% 08/01/19 300,000 320,547
-----------
2,966,311
See notes to portfolios of investments and notes to financial statements.
67
NEAR-TERM TAX FREE FUND
PORTFOLIO OF INVESTMENTS (UNAUDITED) June 30, 2010
COUPON MATURITY PRINCIPAL
MUNICIPAL BONDS RATE DATE AMOUNT VALUE
INDIANA 4.82%
- --------------------------------------------------------------------------------------
Hamilton Heights Independent School 5.25% 07/15/11 $ 305,000 $ 319,826
Indiana State Finance Authority
Revenue, Refunding 4.00% 05/01/12 350,000 369,404
Noblesville Independent Redevelopment
Authority Lease Rent Revenue 5.00% 01/15/24 250,000 255,493
Tippecanoe County, Indiana School
Improvements 4.00% 01/15/15 300,000 328,968
-----------
1,273,691
IOWA 1.95%
- --------------------------------------------------------------------------------------
Ames, Iowa Hospital Revenue, Refunding 5.00% 06/15/15 300,000 304,908
Johnston Community School District, GO
Unlimited 4.00% 06/01/16 200,000 211,014
-----------
515,922
KANSAS 0.83%
- --------------------------------------------------------------------------------------
Kansas State Development Finance
Authority Revenue 4.00% 10/01/15 200,000 219,996
KENTUCKY 1.22%
- --------------------------------------------------------------------------------------
Louisville & Jefferson County
Metropolitan Sewer District & Drain
Systems, Series A 5.50% 05/15/15 300,000 320,997
MASSACHUSETTS 1.36%
- --------------------------------------------------------------------------------------
New Bedford, Massachusetts, State
Qualified Municipal Loan, GO Limited 3.00% 03/01/15 345,000 359,625
MICHIGAN 4.60%
- --------------------------------------------------------------------------------------
Detroit, Michigan Sewer Disposal
Revenue, Refunding, Series C-1 5.25% 07/01/15 400,000 440,612
Michigan State Building Authority
Revenue, Refunding, Series I 5.25% 10/15/14 300,000 324,204
Michigan State Grant Anticipation Bonds 5.00% 09/15/16 200,000 222,680
Michigan State Hospital Finance
Authority Revenue, Trinity Health,
Series A 6.00% 12/01/18 200,000 227,840
-----------
1,215,336
MISSOURI 0.88%
- --------------------------------------------------------------------------------------
Missouri State Health & Educational
Facilities Authority Revenue,
Series A 6.75% 05/15/13 200,000 233,498
See notes to portfolios of investments and notes to financial statements.
68
NEAR-TERM TAX FREE FUND
PORTFOLIO OF INVESTMENTS (UNAUDITED) June 30, 2010
COUPON MATURITY PRINCIPAL
MUNICIPAL BONDS RATE DATE AMOUNT VALUE
NEVADA 2.77%
- --------------------------------------------------------------------------------------
Clark County Nevada School District,
Refunding, Series A 5.50% 06/15/16 $ 250,000 $ 277,188
North Las Vegas, GO Limited 4.00% 03/01/16 200,000 200,696
Nye County School District, GO Limited 4.00% 05/01/15 230,000 254,037
-----------
731,921
NEW HAMPSHIRE 0.46%
- --------------------------------------------------------------------------------------
New Hampshire Health & Education
Facilities Authority Revenue 5.00% 07/01/14 120,000 122,575
NEW JERSEY 1.05%
- --------------------------------------------------------------------------------------
New Jersey State Transportation Trust
Fund Authority, Series D 4.00% 06/15/14 250,000 277,278
NEW YORK 3.47%
- --------------------------------------------------------------------------------------
New York State Dormitory Authority
Revenues, Nonconstruction Supported
Debt, Municipal Facilities Health
Lease, Series 1 5.00% 01/15/17 300,000 333,810
New York, New York, Series G,
GO Unlimited 5.00% 08/01/12 125,000 135,403
New York, New York, Subseries L-1,
GO Unlimited 4.00% 04/01/15 300,000 327,543
Schenectady Metroplex Development
Authority Revenue, Series A 5.00% 12/15/12 110,000 118,892
-----------
915,648
PENNSYLVANIA 0.77%
- --------------------------------------------------------------------------------------
Philadelphia, Pennsylvania 4.50% 08/01/12 195,000 202,896
PUERTO RICO 2.02%
- --------------------------------------------------------------------------------------
Commonwealth of Puerto Rico,
GO Unlimited 6.00% 07/01/13 250,000 273,215
Commonwealth of Puerto Rico, Refunding,
GO Unlimited 5.50% 07/01/11 250,000 259,500
-----------
532,715
SOUTH CAROLINA 2.00%
- --------------------------------------------------------------------------------------
Jasper County School District,
GO Unlimited 4.00% 03/01/15 195,000 215,440
Spartanburg County School District 3.88% 04/01/12 300,000 313,479
-----------
528,919
TENNESSEE 2.34%
- --------------------------------------------------------------------------------------
Metropolitan Government of Nashville &
Davidson County, Water & Sewer
Revenue 6.50% 12/01/14 250,000 305,810
See notes to portfolios of investments and notes to financial statements.
69
NEAR-TERM TAX FREE FUND
PORTFOLIO OF INVESTMENTS (UNAUDITED) June 30, 2010
COUPON MATURITY PRINCIPAL
MUNICIPAL BONDS RATE DATE AMOUNT VALUE
TENNESSEE (CONT'D)
- ---------------------------------------------------------------------------------------
Tennessee State, GO Unlimited,
Refunding, Series A 5.00% 05/01/11 $ 300,000 $ 311,379
-----------
617,189
TEXAS 12.03%
- ---------------------------------------------------------------------------------------
Addison, Texas Certificates of
Obligation, GO Unlimited 4.00% 02/15/20 250,000 263,750
Grand Prairie Independent School
District, Refunding, GO Unlimited
(ZCB) 3.92%(1) 08/15/16 400,000 327,712
Houston Texas, Public Improvement,
Refunding, Series A 5.38% 03/01/16 180,000 200,083
Katy, Texas Independent School
District, School Building, Series D,
GO Unlimited 4.50% 02/15/19 325,000 356,314
Lewisville, Texas Independent School
District, GO Unlimited, Refunding
(ZCB) 4.04%(1) 08/15/15 400,000 357,340
Lower Colorado River Authority Texas,
Refunding 5.25% 05/15/19 240,000 255,763
North Texas Municipal Water District,
Regional Solid Waste Disposal Systems
Revenue 3.00% 09/01/12 300,000 307,563
Port Arthur, Texas, Refunding,
GO Unlimited 2.85% 02/15/11 200,000 202,592
San Antonio Water System Revenue 5.00% 05/15/13 100,000 103,400
San Antonio, Texas Municipal Drain
Utilities Systems Revenue 4.00% 02/01/16 300,000 313,185
San Patricio, Texas Municipal Water
District, Refunding 4.00% 07/10/18 200,000 204,282
Texas Municipal Power Agency Revenue,
Refunding 5.00% 09/01/17 250,000 283,857
-----------
3,175,841
UTAH 1.25%
- ---------------------------------------------------------------------------------------
Utah State, Refunding, Series B, GO
Unlimited 5.38% 07/01/12 300,000 328,929
VIRGINIA 2.55%
- ---------------------------------------------------------------------------------------
Virginia College Building Authority
Educational Facilities Revenue,
Prerefunded, Series A 5.00% 09/01/15 10,000 11,680
Virginia College Building Authority
Educational Facilities Revenue,
Unrefunded, Series A 5.00% 09/01/15 290,000 335,310
Virginia State Public Building
Authority & Public Facilities
Revenue, Refunding, Series A 5.00% 08/01/12 300,000 326,715
-----------
673,705
WASHINGTON 2.47%
- ---------------------------------------------------------------------------------------
Clark County, Washington School
District, GO Unlimited 5.13% 12/01/11 100,000 106,427
See notes to portfolios of investments and notes to financial statements.
70
NEAR-TERM TAX FREE FUND
PORTFOLIO OF INVESTMENTS (UNAUDITED) June 30, 2010
COUPON MATURITY PRINCIPAL
MUNICIPAL BONDS RATE DATE AMOUNT VALUE
WASHINGTON (CONT'D)
- --------------------------------------------------------------------------------------
Energy Northwest, Washington Electric
Revenue 5.00% 07/01/14 $ 250,000 $ 284,460
King County, Washington School District
No. 401 Highline Public Schools,
GO Unlimited 5.50% 12/01/13 240,000 262,598
-----------
653,485
WISCONSIN 2.20%
- --------------------------------------------------------------------------------------
Chippewa Valley, Wisconsin, Technical
College District Promissory Notes,
Series A, GO Unlimited 4.00% 04/01/14 250,000 272,525
Wisconsin State, Refunding, Series 2,
GO Unlimited 4.13% 11/01/16 295,000 307,263
-----------
579,788
- --------------------------------------------------------------------------------------
TOTAL MUNICIPAL BONDS 23,402,168
- --------------------------------------------------------------------------------------
(cost $22,618,989)
REPURCHASE AGREEMENT 9.65%
Joint Tri-Party Repurchase Agreement,
Credit Suisse Securities USA LLC,
06/30/10, 0.01%, due 07/01/10,
repurchase price $2,548,209,
collateralized by U.S. Treasury
securities held in a joint tri-party
account (cost $2,548,208) 0.01% 07/01/10 2,548,208 2,548,208
- --------------------------------------------------------------------------------------
TOTAL INVESTMENTS 98.26% 25,950,376
- --------------------------------------------------------------------------------------
(cost $25,167,197)
Other assets and liabilities, net 1.74% 460,798
-----------
NET ASSETS 100% $26,411,174
-----------
<FN>
(1)Represents Yield
</FN>
See notes to portfolios of investments and notes to financial statements.
71
TAX FREE FUND
PORTFOLIO OF INVESTMENTS (UNAUDITED) June 30, 2010
COUPON MATURITY PRINCIPAL
MUNICIPAL BONDS 92.96% RATE DATE AMOUNT VALUE
ALABAMA 6.34%
- --------------------------------------------------------------------------------------
Alabama 21st Century Authority, Tobacco
Settlement Revenue 5.75% 12/01/19 $ 275,000 $ 280,274
Alabama State, GO Unlimited, Series A 4.63% 09/01/22 375,000 391,980
Bessemer, Alabama Water Revenue 4.00% 01/01/16 200,000 190,874
Mountain Brook City Board of Education
Capital Outlay 4.00% 02/15/15 195,000 212,443
University of Alabama at Birmingham,
Hospital Revenue, Series A 5.00% 09/01/15 300,000 328,287
-----------
1,403,858
ARIZONA 1.23%
- --------------------------------------------------------------------------------------
University of Arizona Certificates of
Participation, Series C 5.00% 06/01/22 260,000 272,168
CALIFORNIA 13.42%
- --------------------------------------------------------------------------------------
Anaheim, California City School
District, Capital Appreciation,
Election 2002, GO Unlimited (ZCB) 4.60%(1) 08/01/28 580,000 178,518
California State, GO Unlimited 5.00% 03/01/32 300,000 291,480
California State, GO Unlimited 4.75% 03/01/34 205,000 186,788
California State, GO Unlimited 5.00% 06/01/37 455,000 433,023
Campbell, California Union High School
District, GO Unlimited 4.75% 08/01/34 300,000 294,501
Chaffey Community College District,
Series C, GO Unlimited 5.00% 06/01/32 300,000 302,598
Imperial Community College District, GO
Unlimited 5.00% 08/01/29 500,000 504,210
San Diego, California Community College
District, Capital Appreciation,
Election 2002, GO Unlimited (ZCB) 4.34%(1) 05/01/15 450,000 389,102
Santa Clara Valley Transportation
Authority, Refunding, Series A 5.00% 04/01/27 370,000 391,190
-----------
2,971,410
COLORADO 0.70%
- --------------------------------------------------------------------------------------
Colorado Health Facilities Authority
Revenue 5.00% 09/01/16 150,000 154,663
CONNECTICUT 1.43%
- --------------------------------------------------------------------------------------
Connecticut State, Series E,
GO Unlimited 5.13% 11/15/14 300,000 317,112
DISTRICT OF COLUMBIA 1.50%
- --------------------------------------------------------------------------------------
District of Columbia Income Tax
Revenue, Series A 5.25% 12/01/27 300,000 331,365
See notes to portfolios of investments and notes to financial statements.
72
TAX FREE FUND
PORTFOLIO OF INVESTMENTS (UNAUDITED) June 30, 2010
COUPON MATURITY PRINCIPAL
MUNICIPAL BONDS RATE DATE AMOUNT VALUE
FLORIDA 1.39%
- --------------------------------------------------------------------------------------
Florida Board of Education,
GO Unlimited, Refunding, Series C 4.50% 06/01/28 $ 300,000 $ 307,965
GEORGIA 2.30%
- --------------------------------------------------------------------------------------
Atlanta Development Authority Revenue 5.25% 07/01/22 500,000 509,805
GUAM 1.11%
- --------------------------------------------------------------------------------------
Guam Education Financing Foundation
Certificate of Participation,
Series A 4.25% 10/01/18 250,000 246,400
ILLINOIS 9.14%
- --------------------------------------------------------------------------------------
Chicago Board of Education,
GO Unlimited 5.25% 12/01/19 300,000 343,557
Chicago, Illinois Water Revenue,
Refunding 5.75% 11/01/30 225,000 263,517
Cook County, Illinois, Series A,
Unrefunded 5.00% 11/15/28 325,000 326,011
Du Page County, Refunding 5.60% 01/01/21 490,000 574,726
Illinois Regional Transportation
Authority Revenue, Series A 7.20% 11/01/20 250,000 300,770
State of Illinois, First Series,
Refunding 5.50% 08/01/19 200,000 213,698
-----------
2,022,279
INDIANA 1.40%
- --------------------------------------------------------------------------------------
Indianapolis Local Public Improvement
Bond Bank, Waterworks Project,
Series 2007 L 5.25% 01/01/33 305,000 309,901
KANSAS 6.38%
- --------------------------------------------------------------------------------------
Kansas State Development Finance
Authority, Hospital Revenue,
Series Z 5.00% 12/15/12 500,000 507,835
Kansas State Development Finance
Authority Revenue 4.00% 10/01/15 250,000 274,995
University of Kansas Hospital Authority
Health Facilities Revenue 5.63% 09/01/27 570,000 629,611
-----------
1,412,441
KENTUCKY 1.06%
- --------------------------------------------------------------------------------------
Bowling Green, Kentucky, GO Unlimited,
Series B 4.00% 09/01/16 215,000 234,950
MARYLAND 1.43%
- --------------------------------------------------------------------------------------
Maryland Health & Higher Educational
Facilities Authority Revenue 5.75% 07/01/21 300,000 315,810
See notes to portfolios of investments and notes to financial statements.
73
TAX FREE FUND
PORTFOLIO OF INVESTMENTS (UNAUDITED) June 30, 2010
COUPON MATURITY PRINCIPAL
MUNICIPAL BONDS RATE DATE AMOUNT VALUE
MASSACHUSETTS 1.49%
- --------------------------------------------------------------------------------------
Massachusetts Bay Transportation
Authority, Massachusetts Sales Tax
Revenue, Refunding, Series A-1 5.25% 07/01/30 $ 285,000 $ 328,993
MICHIGAN 2.07%
- --------------------------------------------------------------------------------------
Detroit, Michigan Local Development
Financing Authority, Refunding,
Series A 5.38% 05/01/18 300,000 152,700
Macomb County Building Authority,
GO Limited 4.50% 11/01/23 300,000 306,480
-----------
459,180
MISSOURI 3.11%
- --------------------------------------------------------------------------------------
Kansas City Water Revenue 4.00% 12/01/22 250,000 273,285
St. Louis Airport Development Program,
Prerefunded, Series A 5.00% 07/01/11 165,000 172,396
St. Louis Airport Development Program,
Unrefunded, Series A 5.00% 07/01/11 235,000 241,803
-----------
687,484
NEVADA 1.17%
- --------------------------------------------------------------------------------------
Nye County School District, GO Limited 4.00% 05/01/15 235,000 259,560
NEW HAMPSHIRE 2.21%
- --------------------------------------------------------------------------------------
Manchester, New Hampshire School
Facilities Revenue, Refunding 5.50% 06/01/26 300,000 360,441
New Hampshire Health & Education
Facilities Authority Refunding 5.00% 07/01/14 125,000 127,682
-----------
488,123
NEW JERSEY 2.08%
- --------------------------------------------------------------------------------------
New Jersey Health Care Facilities
Financing Authority Revenue 4.38% 07/01/10 460,000 460,000
OHIO 1.96%
- --------------------------------------------------------------------------------------
Ohio State Mental Health Facilities
Revenue 5.50% 06/01/15 300,000 313,941
South Euclid Special Assessment, GO
Limited Tax 6.70% 12/01/14 110,000 119,252
-----------
433,193
See notes to portfolios of investments and notes to financial statements.
74
TAX FREE FUND
PORTFOLIO OF INVESTMENTS (UNAUDITED) June 30, 2010
COUPON MATURITY PRINCIPAL
MUNICIPAL BONDS RATE DATE AMOUNT VALUE
PUERTO RICO 2.41%
- --------------------------------------------------------------------------------------
Commonwealth of Puerto Rico,
GO Unlimited 6.00% 07/01/13 $ 250,000 $ 273,215
Commonwealth of Puerto Rico, Refunding,
GO Unlimited 5.50% 07/01/11 250,000 259,500
-----------
532,715
RHODE ISLAND 2.53%
- --------------------------------------------------------------------------------------
Rhode Island State Health & Educational
Building Corporation Revenue 6.50% 08/15/32 500,000 559,795
SOUTH CAROLINA 1.13%
- --------------------------------------------------------------------------------------
South Carolina Jobs Economic
Development Authority Revenue 5.00% 11/01/23 250,000 250,535
TENNESSEE 1.03%
- --------------------------------------------------------------------------------------
Memphis, Tennessee Sanitary Sewage
System Revenue, Refunding 5.00% 05/01/20 200,000 227,232
TEXAS 16.97%
- --------------------------------------------------------------------------------------
Baytown, Texas, GO Limited 4.50% 02/01/27 250,000 254,430
Dallas, Texas Waterworks & Sewer
Systems Revenue, Refunding 4.50% 10/01/19 225,000 245,574
Duncanville, Texas Independent School
District, GO Unlimited, Prerefunded,
Series B 5.25% 02/15/32 495,000 531,368
Duncanville, Texas Independent School
District, GO Unlimited, Unrefunded,
Series B 5.25% 02/15/32 5,000 5,115
Forney, Texas, GO Limited 5.00% 02/15/27 500,000 524,325
Goose Creek, Texas Independent School
District Schoolhouse, Series A 5.25% 02/15/18 370,000 431,860
Greenville, Texas Independent School
District, GO Unlimited, Refunding 4.00% 08/15/17 120,000 129,430
Houston Community College System
Revenue, Refunding 4.00% 04/15/17 300,000 310,470
North Texas Tollway Authority Revenue,
Series F 5.75% 01/01/38 250,000 259,532
Prosper, Texas Independent School
District, Capital Appreciation,
School Building, GO Unlimited (ZCB) 6.00%(1) 08/15/33 1,000,000 301,840
San Marcos, Texas Tax & Toll Revenue,
GO Limited 5.10% 08/15/27 400,000 429,020
White Settlement, Texas Independent
School District, GO Unlimited 4.13% 08/15/15 300,000 334,047
-----------
3,757,011
See notes to portfolios of investments and notes to financial statements.
75
TAX FREE FUND
PORTFOLIO OF INVESTMENTS (UNAUDITED) June 30, 2010
COUPON MATURITY PRINCIPAL
MUNICIPAL BONDS RATE DATE AMOUNT VALUE
UTAH 2.63%
- --------------------------------------------------------------------------------------
Utah State Building Ownership
Authority, Lease Revenue, Refunding,
Series C 5.50% 05/15/19 $ 500,000 $ 581,315
WASHINGTON 2.71%
- --------------------------------------------------------------------------------------
King County, Washington School District
No. 401 Highline Public Schools,
GO Unlimited 5.50% 12/01/13 300,000 328,248
Spokane County, Washington School
District, No. 81, GO Unlimited 5.05% 06/01/22 255,000 272,302
-----------
600,550
WISCONSIN 0.63%
- --------------------------------------------------------------------------------------
Wisconsin State Health & Educational
Facilities Authority 5.50% 12/01/26 140,000 139,996
- --------------------------------------------------------------------------------------
TOTAL MUNICIPAL BONDS 20,575,809
- --------------------------------------------------------------------------------------
(cost $19,885,776)
REPURCHASE AGREEMENT 4.68%
Joint Tri-Party Repurchase Agreement,
Banc of America Securities LLC
Merrill Lynch, 06/30/10, 0.01%, due
07/01/10, repurchase price
$1,036,817, collateralized by U.S.
Treasury securities held in a joint
tri-party account (cost $1,036,817) 0.01% 07/01/10 1,036,817 1,036,817
- --------------------------------------------------------------------------------------
TOTAL INVESTMENTS 97.64% 21,612,626
- --------------------------------------------------------------------------------------
(cost $20,922,593)
Other assets and liabilities, net 2.36% 523,227
-----------
NET ASSETS 100% $22,135,853
-----------
<FN>
(1)Represents Yield
</FN>
See notes to portfolios of investments and notes to financial statements.
76
ALL AMERICAN EQUITY FUND
PORTFOLIO OF INVESTMENTS (UNAUDITED) June 30, 2010
COMMON STOCKS 80.47% SHARES VALUE
AEROSPACE/DEFENSE 2.83%
- ---------------------------------------------------------------------------------------
Lockheed Martin Corp. 2,000 $ 149,000
Northrop Grumman Corp. 2,500 136,100
Raytheon Co. 3,000 145,170
-----------
430,270
APPLICATIONS SOFTWARE 3.99%
- ---------------------------------------------------------------------------------------
Compuware Corp. 17,000 135,660*
Salesforce.com, Inc. 5,500 472,010*
-----------
607,670
CABLE/SATELLITE TV 1.56%
- ---------------------------------------------------------------------------------------
DIRECTV, Class A 7,000 237,440*
CHEMICALS 3.02%
- ---------------------------------------------------------------------------------------
Eastman Chemical Co. 2,500 133,400
EI du Pont de Nemours & Co. 4,000 138,360
Kraton Performance Polymers, Inc. 10,000 187,900*
-----------
459,660
COATINGS/PAINT 0.91%
- ---------------------------------------------------------------------------------------
Sherwin-Williams Co. 2,000 138,380
COMPUTERS 4.13%
- ---------------------------------------------------------------------------------------
Apple, Inc. 2,500 628,825*
DATA PROCESSING 1.01%
- ---------------------------------------------------------------------------------------
Dun & Bradstreet Corp. 2,300 154,376
DIVERSIFIED BANKING INSTITUTIONS 1.89%
- ---------------------------------------------------------------------------------------
Bank of America Corp. 20,000 287,400
DIVERSIFIED MANUFACTURING OPERATIONS 0.79%
- ---------------------------------------------------------------------------------------
Leggett & Platt, Inc. 6,000 120,360
ELECTRIC - INTEGRATED 2.60%
- ---------------------------------------------------------------------------------------
Entergy Corp. 1,800 128,916
FirstEnergy Corp. 4,000 140,920
Pepco Holdings, Inc. 8,000 125,440
-----------
395,276
See notes to portfolios of investments and notes to financial statements.
77
ALL AMERICAN EQUITY FUND
PORTFOLIO OF INVESTMENTS (UNAUDITED) June 30, 2010
COMMON STOCKS SHARES VALUE
ELECTRONIC COMPONENTS - SEMICONDUCTORS 3.21%
- ---------------------------------------------------------------------------------------
Cree, Inc. 3,000 $ 180,090*
Integrys Energy Group, Inc. 4,000 174,960
QLogic Corp. 8,000 132,960*
-----------
488,010
FINANCIAL SERVICES 1.95%
- ---------------------------------------------------------------------------------------
E*Trade Financial Corp. 12,500 147,750*
Invictus Financial, Inc. 131,125 131*
Western Union Co. 10,000 149,100
-----------
296,981
FOOD - RETAIL 0.90%
- ---------------------------------------------------------------------------------------
Safeway, Inc. 7,000 137,620
FOOD & BEVERAGES 2.34%
- ---------------------------------------------------------------------------------------
Campbell Soup Co. 5,000 179,150
General Mills, Inc. 5,000 177,600
-----------
356,750
FOOTWEAR & RELATED APPAREL 1.20%
- ---------------------------------------------------------------------------------------
Skechers U.S.A., Inc., Class A 5,000 182,600*
GAS - DISTRIBUTION 0.95%
- ---------------------------------------------------------------------------------------
NiSource, Inc. 10,000 145,000
GOLD MINING 3.86%
- ---------------------------------------------------------------------------------------
Agnico-Eagle Mines Ltd. 3,000 182,340
Eldorado Gold Corp. 12,000 215,520
Randgold Resources Ltd., Sponsored ADR 2,000 189,500
-----------
587,360
INSURANCE 4.69%
- ---------------------------------------------------------------------------------------
Assurant, Inc. 4,000 138,800
Chubb Corp. 3,000 150,030
Cincinnati Financial Corp. 6,000 155,220
Lincoln National Corp. 5,000 121,450
The Travelers Cos, Inc. 3,000 147,750
-----------
713,250
INTERNET 2.40%
- ---------------------------------------------------------------------------------------
Akamai Technologies, Inc. 9,000 365,130*
See notes to portfolios of investments and notes to financial statements.
78
ALL AMERICAN EQUITY FUND
PORTFOLIO OF INVESTMENTS (UNAUDITED) June 30, 2010
COMMON STOCKS SHARES VALUE
INTERNET SECURITY 1.13%
- ---------------------------------------------------------------------------------------
VeriSign, Inc. 6,500 $ 172,575*
MEDICAL - BIOMEDICAL 0.94%
- ---------------------------------------------------------------------------------------
Biogen Idec, Inc. 3,000 142,350*
MEDICAL - HMO 0.80%
- ---------------------------------------------------------------------------------------
WellPoint, Inc. 2,500 122,325*
MEDICAL INFORMATION SYSTEM 1.50%
- ---------------------------------------------------------------------------------------
Cerner Corp. 3,000 227,670*
MEDICAL PRODUCTS 1.07%
- ---------------------------------------------------------------------------------------
Zimmer Holdings, Inc. 3,000 162,150*
METAL - IRON 0.77%
- ---------------------------------------------------------------------------------------
Cliffs Natural Resources, Inc. 2,500 117,900
MULTIMEDIA 0.95%
- ---------------------------------------------------------------------------------------
Time Warner, Inc. 5,000 144,550
OIL & GAS - INTEGRATED 2.83%
- ---------------------------------------------------------------------------------------
Chevron Corp. 2,000 135,720
ConocoPhillips 6,000 294,540
-----------
430,260
OIL & GAS EXPLORATION & PRODUCTION 3.94%
- ---------------------------------------------------------------------------------------
Atlas Energy, Inc. 5,000 135,350*
Concho Resources, Inc. 4,000 221,320*
Devon Energy Corp. 4,000 243,680
-----------
600,350
OIL FIELD SERVICES 1.21%
- ---------------------------------------------------------------------------------------
Key Energy Services, Inc. 20,000 183,600*
OIL REFINING & MARKETING 1.37%
- ---------------------------------------------------------------------------------------
Sunoco, Inc. 6,000 208,620
See notes to portfolios of investments and notes to financial statements.
79
ALL AMERICAN EQUITY FUND
PORTFOLIO OF INVESTMENTS (UNAUDITED) June 30, 2010
COMMON STOCKS SHARES VALUE
PHARMACEUTICALS 2.23%
- ---------------------------------------------------------------------------------------
AmerisourceBergen Corp., Class A 6,000 $ 190,500
Bristol-Myers Squibb Co. 6,000 149,640
-----------
340,140
RESTAURANTS 3.78%
- ---------------------------------------------------------------------------------------
Chipotle Mexican Grill, Inc., Class A 2,000 273,620*
Panera Bread Co., Class A 4,000 301,160*
-----------
574,780
RETAIL 0.98%
- ---------------------------------------------------------------------------------------
Lululemon Athletica, Inc. 4,000 148,880*
RETAIL - AUTO PARTS 1.27%
- ---------------------------------------------------------------------------------------
AutoZone, Inc. 1,000 193,220*
SEMICONDUCTORS 1.10%
- ---------------------------------------------------------------------------------------
Analog Devices, Inc. 6,000 167,160
SOFTWARE TOOLS 1.03%
- ---------------------------------------------------------------------------------------
VMware, Inc., Class A 2,500 156,475*
TELEPHONE - INTEGRATED 4.92%
- ---------------------------------------------------------------------------------------
AT&T, Inc. 6,500 157,235
Frontier Communications Corp. 20,000 142,200
Qwest Communications International, Inc. 30,000 157,500
Verizon Communications, Inc. 5,500 154,110
Windstream Corp. 13,000 137,280
-----------
748,325
TOBACCO 1.93%
- ---------------------------------------------------------------------------------------
Philip Morris International, Inc. 3,000 137,520
Reynolds American, Inc. 3,000 156,360
-----------
293,880
TRANSPORTATION 1.08%
- ---------------------------------------------------------------------------------------
Golar LNG Energy Ltd. 2,857 2,905*
Ryder System, Inc. 4,000 160,920
-----------
163,825
VETERINARY DIAGNOSTICS 0.68%
- ---------------------------------------------------------------------------------------
Neogen Corp. 4,000 104,200*
See notes to portfolios of investments and notes to financial statements.
80
ALL AMERICAN EQUITY FUND
PORTFOLIO OF INVESTMENTS (UNAUDITED) June 30, 2010
COMMON STOCKS SHARES VALUE
WIRELESS EQUIPMENT 0.73%
- ---------------------------------------------------------------------------------------
American Tower Corp., Class A 2,500 $ 111,250*
- ---------------------------------------------------------------------------------------
TOTAL COMMON STOCKS 12,246,843
- ---------------------------------------------------------------------------------------
(cost $11,981,008)
REAL ESTATE INVESTMENT TRUST (REIT) 0.91%
Plum Creek Timber Co., Inc. 4,000 138,120
(cost $159,760)
EXCHANGE-TRADED FUNDS (ETF) 3.18%
Energy Select Sector SPDR Fund 3,000 149,040
SPDR Barclays Capital High Yield Bond ETF 4,000 151,320
SPDR KBW Bank ETF 8,000 183,120
- ---------------------------------------------------------------------------------------
TOTAL EXCHANGE-TRADED FUNDS 483,480
- ---------------------------------------------------------------------------------------
(cost $521,332)
PURCHASED OPTIONS 0.97% CONTRACTS
EXCHANGE-TRADED FUND 0.85%
- ---------------------------------------------------------------------------------------
PowerShares QQQ, Strike Price 45, Put, Expiration July
2010 (premium $24,220) 105 26,775
SPDR Gold Trust, Strike Price 110, Call, Expiration July
2010 (premium $33,375) 30 34,650
SPDR S&P 500 ETF Trust, Strike Price 107, Put,
Expiration July 2010 (premium $15,550) 50 25,000
SPDR S&P 500 ETF Trust, Strike Price 110, Put,
Expiration Aug. 2010 (premium $25,325) 50 42,500
-----------
128,925
FINANCIAL SERVICES 0.12%
- ---------------------------------------------------------------------------------------
Citigroup, Inc., Strike Price 8, Call, Expiration Jan.
2012 (premium $30,300) 800 19,200
- ---------------------------------------------------------------------------------------
TOTAL PURCHASED OPTIONS 148,125
- ---------------------------------------------------------------------------------------
(cost $128,770)
- ---------------------------------------------------------------------------------------
TOTAL SECURITIES 13,016,568
- ---------------------------------------------------------------------------------------
(cost $12,790,870)
See notes to portfolios of investments and notes to financial statements.
81
ALL AMERICAN EQUITY FUND
PORTFOLIO OF INVESTMENTS (UNAUDITED) June 30, 2010
PRINCIPAL
REPURCHASE AGREEMENT 10.98% AMOUNT VALUE
Joint Tri-Party Repurchase Agreement, Banc of America
Securities LLC Merrill Lynch, 06/30/10, 0.01%,
due 07/01/10, repurchase price $1,671,027,
collateralized by U.S. Treasury securities held
in a joint tri-party account (cost $1,671,027) $1,671,027 $ 1,671,027
- ---------------------------------------------------------------------------------------
TOTAL INVESTMENTS 96.51% 14,687,595
- ---------------------------------------------------------------------------------------
(cost $14,461,897)
Other assets and liabilities, net 3.49% 531,292
-----------
NET ASSETS 100% $15,218,887
-----------
See notes to portfolios of investments and notes to financial statements.
82
HOLMES GROWTH FUND
PORTFOLIO OF INVESTMENTS (UNAUDITED) June 30, 2010
COMMON STOCKS 78.22% SHARES VALUE
BREWERY 1.48%
- ---------------------------------------------------------------------------------------
Compania de Bebidas das Americas, Sponsored ADR 5,000 $ 505,050
CABLE/SATELLITE TV 1.74%
- ---------------------------------------------------------------------------------------
DIRECTV, Class A 17,500 593,600*
COMPUTER SERVICES 1.46%
- ---------------------------------------------------------------------------------------
Cognizant Technology Solutions Corp., Class A 10,000 500,600*
COMPUTERS 4.93%
- ---------------------------------------------------------------------------------------
Apple, Inc. 4,500 1,131,885*
Riverbed Technology, Inc. 20,000 552,400*
-----------
1,684,285
COMPUTERS - MEMORY DEVICES 1.09%
- ---------------------------------------------------------------------------------------
NetApp, Inc. 10,000 373,100*
DIVERSIFIED BANKING INSTITUTIONS 2.75%
- ---------------------------------------------------------------------------------------
Bank of America Corp. 45,000 646,650
JPMorgan Chase & Co. 8,000 292,880
-----------
939,530
E-COMMERCE 2.97%
- ---------------------------------------------------------------------------------------
Ctrip.com International Ltd., Sponsored ADR 20,000 751,200
MercadoLibre, Inc. 5,000 262,750*
-----------
1,013,950
ELECTRONIC COMPONENTS - SEMICONDUCTORS 5.62%
- ---------------------------------------------------------------------------------------
Avago Technologies Ltd. 20,000 421,200*
Broadcom Corp., Class A 12,500 412,125
Cree, Inc. 10,000 600,300*
Netlogic Microsystems, Inc. 18,000 489,600*
-----------
1,923,225
FINANCIAL SERVICES 5.86%
- ---------------------------------------------------------------------------------------
Altisource Portfolio Solutions S.A. 20,000 494,800*
Endeavour Financial Corp. 100,000 206,660*
GMP Capital, Inc. 28,000 244,873
IntercontinentalExchange, Inc. 4,000 452,120*
MCO Capital, Inc. (RS) 1,000,000 77,498*+@
Visa, Inc., Class A 7,500 530,625
-----------
2,006,576
See notes to portfolios of investments and notes to financial statements.
83
HOLMES GROWTH FUND
PORTFOLIO OF INVESTMENTS (UNAUDITED) June 30, 2010
COMMON STOCKS SHARES VALUE
FOOTWEAR & RELATED APPAREL 3.07%
- ---------------------------------------------------------------------------------------
Deckers Outdoor Corp. 3,000 $ 428,610*
Steven Madden Ltd. 19,750 622,520*
-----------
1,051,130
GOLD MINING 6.85%
- ---------------------------------------------------------------------------------------
Agnico-Eagle Mines Ltd. 6,000 364,680
Eldorado Gold Corp. 30,000 538,800
Randgold Resources Ltd., Sponsored ADR 12,000 1,137,000
Red Back Mining, Inc. 12,000 303,339*
-----------
2,343,819
INDUSTRIAL AUDIO & VIDEO PRODUCTS 1.07%
- ---------------------------------------------------------------------------------------
Imax Corp. 25,000 365,000*
INTERNET 2.80%
- ---------------------------------------------------------------------------------------
Baidu, Inc., Sponsored ADR 10,000 680,800*
Rackspace Hosting, Inc. 15,000 275,100*
-----------
955,900
MACHINERY 0.95%
- ---------------------------------------------------------------------------------------
Altra Holdings, Inc. 25,000 325,500*
MARINE SERVICES 1.17%
- ---------------------------------------------------------------------------------------
Aegean Marine Petroleum Network, Inc. 20,000 399,600
MEDICAL - BIOMEDICAL 2.54%
- ---------------------------------------------------------------------------------------
Alexion Pharmaceuticals, Inc. 10,000 511,900*
Celgene Corp. 7,000 355,740*
-----------
867,640
MEDICAL - HOSPITALS 0.98%
- ---------------------------------------------------------------------------------------
African Medical Investments plc 1,000,000 335,823*
OIL & GAS EXPLORATION & PRODUCTION 8.76%
- ---------------------------------------------------------------------------------------
Alange Energy Corp. 1,500,000 493,166*
Brigham Exploration Co. 34,000 522,920*
Concho Resources, Inc. 16,000 885,280*
Newfield Exploration Co. 9,000 439,740*
Pacific Rubiales Energy Corp. 29,200 654,466*
-----------
2,995,572
See notes to portfolios of investments and notes to financial statements.
84
HOLMES GROWTH FUND
PORTFOLIO OF INVESTMENTS (UNAUDITED) June 30, 2010
COMMON STOCKS SHARES VALUE
OIL FIELD SERVICES 2.33%
- ---------------------------------------------------------------------------------------
Core Laboratories N.V. 5,400 $ 797,094
PHARMACEUTICALS 1.84%
- ---------------------------------------------------------------------------------------
Valeant Pharmaceuticals International 12,000 627,480*
PHARMACY SERVICES 2.75%
- ---------------------------------------------------------------------------------------
Express Scripts, Inc. 20,000 940,400*
PLATINUM 0.15%
- ---------------------------------------------------------------------------------------
Eastern Platinum Ltd. 58,000 52,849*
RADIO 7.87%
- ---------------------------------------------------------------------------------------
Newfoundland Capital Corp. Ltd., Class A 398,100 2,692,518
RESTAURANTS 1.20%
- ---------------------------------------------------------------------------------------
Chipotle Mexican Grill, Inc., Class A 3,000 410,430*
RETAIL 4.35%
- ---------------------------------------------------------------------------------------
Dollar Tree, Inc. 12,750 530,783*
TJX Cos, Inc. 7,500 314,625
Vitamin Shoppe, Inc. 25,000 641,250*
-----------
1,486,658
RETAIL - AUTO PARTS 0.88%
- ---------------------------------------------------------------------------------------
Advance Auto Parts, Inc. 6,000 301,080
TRANSPORT - TRUCK 0.76%
- ---------------------------------------------------------------------------------------
J.B. Hunt Transport Services, Inc. 8,000 261,360
- ---------------------------------------------------------------------------------------
TOTAL COMMON STOCKS 26,749,769
- ---------------------------------------------------------------------------------------
(cost $24,246,983)
EXCHANGE-TRADED FUND (ETF) 1.67%
SPDR KBW Bank ETF 25,000 572,250
(cost $635,059)
See notes to portfolios of investments and notes to financial statements.
85
HOLMES GROWTH FUND
PORTFOLIO OF INVESTMENTS (UNAUDITED) June 30, 2010
WARRANTS 1.11% SHARES VALUE
GOLD & SILVER MINING 0.04%
- ---------------------------------------------------------------------------------------
Medoro Resources Ltd., Warrants (November 2011) 100,000 $ 14,090*
MEDICAL - HOSPITALS 0.06%
- ---------------------------------------------------------------------------------------
African Medical Investments plc, Warrants (June 2011) 500,000 18,672*@
SILVER MINING 1.01%
- ---------------------------------------------------------------------------------------
Silver Wheaton Corp., Warrants (December 2010) 32,500 346,508*
- ---------------------------------------------------------------------------------------
TOTAL WARRANTS 379,270
- ---------------------------------------------------------------------------------------
(cost $47,021)
PURCHASED OPTIONS 1.17% CONTRACTS
EXCHANGE-TRADED FUND 0.79%
- ---------------------------------------------------------------------------------------
PowerShares QQQ, Strike Price 45, Put, Expiration July
2010 (premium $44,980) 195 49,725
SPDR Gold Trust, Strike Price 110, Call, Expiration July
2010 (premium $77,875) 70 80,850
SPDR S&P 500 ETF Trust, Strike Price 107, Put,
Expiration July 2010 (premium $34,210) 110 55,000
SPDR S&P 500 ETF Trust, Strike Price 110, Put,
Expiration Aug. 2010 (premium $50,650) 100 85,000
-----------
270,575
OIL & GAS EXPLORATION & PRODUCTION 0.38%
- ---------------------------------------------------------------------------------------
Anadarko Petroleum Corp., Strike Price 40, Call,
Expiration Nov. 2010 (premium $159,050) 250 128,750
Pacific Rubiales Energy Corp., Strike Price 20, Put,
Expiration July 2010 (premium $43,214) 280 1,447
-----------
130,197
- ---------------------------------------------------------------------------------------
TOTAL PURCHASED OPTIONS 400,772
- ---------------------------------------------------------------------------------------
(cost $409,979)
See notes to portfolios of investments and notes to financial statements.
86
HOLMES GROWTH FUND
PORTFOLIO OF INVESTMENTS (UNAUDITED) June 30, 2010
PRINCIPAL
CONVERTIBLE DEBENTURE 1.11% AMOUNT VALUE
METAL & MINERAL MINING 1.11%
- ---------------------------------------------------------------------------------------
Grupo Empresarial Ibiza S.A., 12.00%, maturity
05/03/11 (RS) $ 380,000 $ 380,000@
(cost $380,000)
- ---------------------------------------------------------------------------------------
TOTAL SECURITIES 28,482,061
- ---------------------------------------------------------------------------------------
(cost $25,719,042)
REPURCHASE AGREEMENT 11.51%
Joint Tri-Party Repurchase Agreement, Credit Suisse
Securities USA LLC, 06/30/10, 0.01%, due 07/01/10,
repurchase price $3,935,511, collateralized by U.S.
Treasury securities held in a joint tri-party account
(cost $3,935,510) 3,935,510 3,935,510
- ---------------------------------------------------------------------------------------
TOTAL INVESTMENTS 94.79% $32,417,571
- ---------------------------------------------------------------------------------------
(cost $29,654,552)
Other assets and liabilities, net 5.21% 1,781,109
-----------
NET ASSETS 100% $34,198,680
-----------
SHARES SUBJECT
CALL OPTIONS WRITTEN TO CALL VALUE
- ---------------------------------------------------------------------------------------
Anadarko Petroleum Corp., Strike Price 50, Expiration
Nov. 2010 25,000 $ 64,000
(premiums received $68,799) (Note 2A)
See notes to portfolios of investments and notes to financial statements.
87
GLOBAL MEGATRENDS FUND
PORTFOLIO OF INVESTMENTS (UNAUDITED) June 30, 2010
COMMON STOCKS 75.75% SHARES VALUE
AIRLINES 0.86%
- ---------------------------------------------------------------------------------------
China Eastern Airlines Corp. Ltd., H shares 400,000 $ 169,193*
AIRPORT DEVELOPMENT/MAINTENANCE 1.35%
- ---------------------------------------------------------------------------------------
TAV Havalimanlari Holding A.S. 75,000 264,636*
AIRPORTS 4.65%
- ---------------------------------------------------------------------------------------
Grupo Aeroportuario del Sureste S.A.B. de C.V.,
Sponsored ADR 20,000 910,800
AUTO MANUFACTURERS 2.06%
- ---------------------------------------------------------------------------------------
Tofas Turk Otomobil Fabrikasi A.S. 120,000 403,726
BUILDING & CONSTRUCTION 1.27%
- ---------------------------------------------------------------------------------------
Aveng Ltd. 27,500 122,606
Murray & Roberts Holdings Ltd. 25,000 125,779
-----------
248,385
BUILDING PRODUCTS 2.00%
- ---------------------------------------------------------------------------------------
Akcansa Cimento A.S. 50,000 201,218
Semen Gresik Persero Tbk PT 200,000 191,376
-----------
392,594
CELLULAR TELECOMMUNICATIONS 4.24%
- ---------------------------------------------------------------------------------------
America Movil SAB de C.V., Series L, Sponsored ADR 9,000 427,500
Mobile TeleSystems, Sponsored ADR 7,500 143,700
Vivo Participacoes S.A., Sponsored ADR 10,000 259,200
-----------
830,400
COMMERCIAL SERVICES 1.13%
- ---------------------------------------------------------------------------------------
Stantec, Inc. 10,000 221,300*
ELECTRIC - INTEGRATED 9.92%
- ---------------------------------------------------------------------------------------
CPFL Energia S.A., Sponsored ADR 12,500 836,875
FirstEnergy Corp. 13,000 457,990
NextEra Energy, Inc. 7,000 341,320
Polska Grupa Energetyczna S.A. 50,000 307,906
-----------
1,944,091
ELECTRONICS & COMPONENTS 3.17%
- ---------------------------------------------------------------------------------------
Toshiba Corp. 40,000 198,762
Zhuzhou CSR Times Electric Co., Ltd., H shares 200,000 423,239
-----------
622,001
See notes to portfolios of investments and notes to financial statements.
88
GLOBAL MEGATRENDS FUND
PORTFOLIO OF INVESTMENTS (UNAUDITED) June 30, 2010
COMMON STOCKS SHARES VALUE
ENGINEERING & CONSTRUCTION 5.26%
- ---------------------------------------------------------------------------------------
McDermott International, Inc. 20,000 $ 433,200*
SNC-Lavalin Group, Inc. 10,000 400,263
URS Corp. 5,000 196,750*
-----------
1,030,213
GOLD MINING 2.46%
- ---------------------------------------------------------------------------------------
Agnico-Eagle Mines Ltd. 3,500 212,730
Eldorado Gold Corp. 15,000 269,400
-----------
482,130
HOLDING COMPANY 3.46%
- ---------------------------------------------------------------------------------------
Berkshire Hathaway, Inc., Class B 8,500 677,365*
INTERNET 0.84%
- ---------------------------------------------------------------------------------------
Rackspace Hosting, Inc. 9,000 165,060*
MARINE SERVICES 1.53%
- ---------------------------------------------------------------------------------------
Aegean Marine Petroleum Network, Inc. 15,000 299,700
METAL PROCESSING 0.11%
- ---------------------------------------------------------------------------------------
China Wind Systems, Inc. 5,000 22,500*
NON-FERROUS METALS 0.55%
- ---------------------------------------------------------------------------------------
Uranium Energy Corp. 45,800 108,088*
OIL & GAS EXPLORATION & PRODUCTION 0.71%
- ---------------------------------------------------------------------------------------
Pacific Rubiales Energy Corp. 6,233 139,702*
PIPELINES 2.29%
- ---------------------------------------------------------------------------------------
China Gas Holdings Ltd. 800,000 448,855
PLATINUM 0.11%
- ---------------------------------------------------------------------------------------
Eastern Platinum Ltd. 23,500 21,413
POWER CONVERTERS/POWER SUPPLY EQUIPMENT 2.04%
- ---------------------------------------------------------------------------------------
China High Speed Transmission Equipment Group Co., Ltd. 190,000 399,563
See notes to portfolios of investments and notes to financial statements.
89
GLOBAL MEGATRENDS FUND
PORTFOLIO OF INVESTMENTS (UNAUDITED) June 30, 2010
COMMON STOCKS SHARES VALUE
PUBLIC THOROUGHFARES 4.65%
- ---------------------------------------------------------------------------------------
Compania de Concessoes Rodoviarias 36,000 $ 745,323
EcoRodovias Infraestrutura e Logistica S.A. 30,000 165,827*
-----------
911,150
REAL ESTATE 1.85%
- ---------------------------------------------------------------------------------------
LSR Group OJSC, GDR 28,600 212,950*
PIK Group, Sponsored GDR 45,000 150,361*
-----------
363,311
STEEL - PRODUCERS 3.28%
- ---------------------------------------------------------------------------------------
Mechel, Sponsored ADR 10,000 181,400
Novolipetsk Steel, Sponsored GDR 10,500 268,805
Severstal OAO, Sponsored GDR 20,000 192,149*
-----------
642,354
TRANSPORT - MARINE 0.90%
- ---------------------------------------------------------------------------------------
China Shipping Development Co. Ltd., H shares 140,000 176,780
TRANSPORT & STORAGE 3.73%
- ---------------------------------------------------------------------------------------
Westshore Terminals Income Fund 45,000 731,718
TRANSPORTATION 5.40%
- ---------------------------------------------------------------------------------------
CSX Corp. 10,000 496,300
J.B. Hunt Transport Services, Inc. 9,000 294,030
Novorossiysk Sea Trade Port, Sponsored GDR 25,000 269,234
-----------
1,059,564
WATER TREATMENT SYSTEMS 4.80%
- ---------------------------------------------------------------------------------------
Beijing Enterprises Water Group Ltd. 240,000 74,693*
Hyflux Ltd. 375,000 865,701
-----------
940,394
WIRELESS EQUIPMENT 1.13%
- ---------------------------------------------------------------------------------------
American Tower Corp., Class A 5,000 222,500*
- ---------------------------------------------------------------------------------------
TOTAL COMMON STOCKS 14,849,486
- ---------------------------------------------------------------------------------------
(cost $15,007,508)
See notes to portfolios of investments and notes to financial statements.
90
GLOBAL MEGATRENDS FUND
PORTFOLIO OF INVESTMENTS (UNAUDITED) June 30, 2010
WARRANTS 0.06% SHARES VALUE
BUILDING PRODUCTS 0.06%
- ---------------------------------------------------------------------------------------
Polaris Minerals Corp., Warrants (January 2011) 100,000 $ 11,742*
(cost $9,053)
PURCHASED OPTIONS 0.57% CONTRACTS
EXCHANGE-TRADED FUND 0.57%
- ---------------------------------------------------------------------------------------
iShares MSCI Emerging Markets Index, Strike Price 37,
Put, Expiration July 2010 (premium $49,267) 300 33,300
iShares MSCI Emerging Markets Index, Strike Price 39,
Put, Expiration Sep. 2010 (premium $30,200) 100 31,500
SPDR Gold Trust, Strike Price 110, Call, Expiration July
2010 (premium $44,500) 40 46,200
- ---------------------------------------------------------------------------------------
TOTAL PURCHASED OPTIONS 111,000
- ---------------------------------------------------------------------------------------
(cost $123,967)
MASTER LIMITED PARTNERSHIPS 4.03% UNITS
PIPELINES 4.03%
- ---------------------------------------------------------------------------------------
El Paso Pipeline Partners, L.P. 7,500 215,025
NuStar Energy L.P. 10,000 573,900
- ---------------------------------------------------------------------------------------
TOTAL MASTER LIMITED PARTNERSHIPS 788,925
- ---------------------------------------------------------------------------------------
(cost $693,311)
PRINCIPAL
CONVERTIBLE DEBENTURE 2.65% AMOUNT
METAL & MINERAL MINING 2.65%
- ---------------------------------------------------------------------------------------
Grupo Empresarial Ibiza S.A., 12.00%, maturity 05/03/11
(RS) (cost $520,000) $520,000 520,000@
- ---------------------------------------------------------------------------------------
TOTAL SECURITIES 16,281,153
- ---------------------------------------------------------------------------------------
(cost $16,353,839)
See notes to portfolios of investments and notes to financial statements.
91
GLOBAL MEGATRENDS FUND
PORTFOLIO OF INVESTMENTS (UNAUDITED) June 30, 2010
PRINCIPAL
REPURCHASE AGREEMENT 9.95% AMOUNT VALUE
Joint Tri-Party Repurchase Agreement, Credit Suisse
Securities USA LLC, 06/30/10, 0.01%, due 07/01/10,
repurchase price $1,951,062, collateralized by U.S.
Treasury securities held in a joint tri-party account
(cost $1,951,062) $1,951,062 $ 1,951,062
- ---------------------------------------------------------------------------------------
TOTAL INVESTMENTS 93.01% 18,232,215
- ---------------------------------------------------------------------------------------
(cost $18,304,901)
Other assets and liabilities, net 6.99% 1,370,525
-----------
NET ASSETS 100% $19,602,740
-----------
See notes to portfolios of investments and notes to financial statements.
92
GLOBAL RESOURCES FUND
PORTFOLIO OF INVESTMENTS (UNAUDITED) June 30, 2010
COMMON STOCKS 75.79% SHARES VALUE
AGRICULTURAL CHEMICALS & FERTILIZERS 0.01%
- ----------------------------------------------------------------------------------------------
Spur Ventures, Inc. 274,867 $ 77,460*
AGRICULTURAL OPERATIONS 0.32%
- ----------------------------------------------------------------------------------------------
Agriterra Ltd. 46,395,364 2,020,878*+
COAL 0.63%
- ----------------------------------------------------------------------------------------------
Bounty Mining Ltd. 22,000,000 231,343*@
Coalcorp Mining, Inc. 5,732,661 565,431*
Lysander Minerals Corp. 500,000 89,240*
Xinergy Ltd. 1,335,000 3,072,425*
--------------
3,958,439
COPPER 0.48%
- ----------------------------------------------------------------------------------------------
Augusta Resource Corp. 800,000 1,240,000*
Catalyst Copper Corp. 1,800,000 202,903*
Continental Minerals Corp. 681,060 1,292,322*
Los Andes Copper Ltd. 754,000 83,223*
Lumina Copper Corp. 168,600 188,468*
--------------
3,006,916
DIAMOND MINING & EXPLORATION 0.06%
- ----------------------------------------------------------------------------------------------
Diamond Fields International Ltd. 1,800,000 295,899*
Rockwell Diamonds, Inc., 144A 950,000 62,468*
--------------
358,367
DIVERSIFIED MINERALS 0.10%
- ----------------------------------------------------------------------------------------------
Woulfe Mining Corp. 8,347,700 627,322*
ENERGY - ALTERNATIVE SOURCES 0.45%
- ----------------------------------------------------------------------------------------------
Magma Energy Corp. 2,250,000 2,811,047*
ENGINEERING/RESEARCH & DEVELOPMENT SERVICES 1.31%
- ----------------------------------------------------------------------------------------------
McDermott International, Inc. 380,000 8,230,800*
FINANCIAL SERVICES 0.66%
- ----------------------------------------------------------------------------------------------
Aberdeen International, Inc. 1,274,750 431,084*
Endeavour Financial Corp. 1,806,500 3,733,315*
--------------
4,164,399
See notes to portfolios of investments and notes to financial statements.
93
GLOBAL RESOURCES FUND
PORTFOLIO OF INVESTMENTS (UNAUDITED) June 30, 2010
COMMON STOCKS SHARES VALUE
GENERAL METAL & MINERAL MINING 2.61%
- ----------------------------------------------------------------------------------------------
Anfield Nickel Corp., 144A 200,000 $ 582,406*
Atacama Minerals Corp. 1,025,000 457,353*
Baja Mining Corp. 1,381,050 804,331*
Calibre Mining Corp. 550,000 61,998*
Canada Zinc Metals Corp. 1,000,000 422,714*
Century Mining Corp. 225,911 94,435*
Lithium Americas Corp. 141,667 186,308*
Lithium Americas Corp. (RS) 425,000 530,975*@
Natasa Mining Ltd. 1,038,350 1,527,770*
Revett Minerals, Inc. 4,898,000 1,380,301*
Sable Mining Africa Ltd. 27,989,506 8,032,407*
Savant Explorations Ltd. 54,191 4,327*
Sterling Group Ventures, Inc. 500,000 17,750*
Terrane Metals Corp. 2,167,000 2,137,382*
Toledo Mining Corp. plc 426,200 152,814*
Verona Development Corp. 708,800 0*@
--------------
16,393,271
GOLD & SILVER MINING 5.74%
- ----------------------------------------------------------------------------------------------
Chesapeake Gold Corp. 502,000 3,701,752*
Corona Gold Ltd. 50,000 0*@
Dundee Precious Metals, Inc. 550,827 2,369,816*
Euromax Resources Ltd. 540,840 83,828*
Fortress Minerals Corp. 431,425 51,671*
Kinross Gold Corp. 1 17
Medoro Resources Ltd. 6,760,614 4,445,474*
NGEx Resources, Inc. 1,954,005 917,761*
Northern Dynasty Minerals Ltd. 400,000 2,596,402*
Olympus Pacific Minerals, Inc. 265,000 75,924*
Orsu Metals Corp. 147,605 24,958*
Planet Exploration, Inc. 160,000 22,921*
Randgold Resources Ltd., Sponsored ADR 217,500 20,608,125
Rusoro Mining Ltd. 3,150,000 636,184*
Rusoro Mining Ltd., 144A 433,333 87,518*
TVI Pacific, Inc. 4,850,000 410,032*
--------------
36,032,383
GOLD MINING 5.84%
- ----------------------------------------------------------------------------------------------
Barrick Gold Corp. 400,000 18,164,000
Newmont Mining Corp. 300,000 18,522,000
--------------
36,686,000
See notes to portfolios of investments and notes to financial statements.
94
GLOBAL RESOURCES FUND
PORTFOLIO OF INVESTMENTS (UNAUDITED) June 30, 2010
COMMON STOCKS SHARES VALUE
MACHINERY 3.39%
- ----------------------------------------------------------------------------------------------
Caterpillar, Inc. 100,000 $ 6,007,000
Flowserve Corp. 95,000 8,056,000
Robbins & Myers, Inc. 331,800 7,213,332
--------------
21,276,332
MEDICAL - HOSPITALS 0.13%
- ----------------------------------------------------------------------------------------------
African Medical Investments plc 2,386,000 801,275*
METAL - IRON 0.19%
- ----------------------------------------------------------------------------------------------
Baffinland Iron Mines Corp. 3,350,000 1,211,545*
METAL & MINERAL MINING & EXPLORATION 0.11%
- ----------------------------------------------------------------------------------------------
Peregrine Metals Ltd. 900,000 659,434*
NATURAL RESOURCE TECHNOLOGY 0.00%
- ----------------------------------------------------------------------------------------------
I-Pulse, Inc. (RS) 15,971 7,500*@
OIL & GAS - INTEGRATED 9.87%
- ----------------------------------------------------------------------------------------------
Chevron Corp. 370,000 25,108,200^
ConocoPhillips 280,000 13,745,200*
Occidental Petroleum Corp. 300,000 23,145,000^
--------------
61,998,400
OIL & GAS DRILLING 2.82%
- ----------------------------------------------------------------------------------------------
ENSCO International plc, Sponsored ADR 215,000 8,445,200
Transocean Ltd. 200,000 9,266,000*
--------------
17,711,200
OIL & GAS EQUIPMENT & SERVICES 0.95%
- ----------------------------------------------------------------------------------------------
Oil States International, Inc. 150,000 5,937,000*
OIL & GAS EXPLORATION & PRODUCTION 34.12%
- ----------------------------------------------------------------------------------------------
Africa Oil Corp. 2,050,000 2,214,551*
Alange Energy Corp. 26,036,000 8,560,049*
Anadarko Petroleum Corp. 375,000 13,533,750^
Atlas Energy, Inc. 430,000 11,640,100*
Bankers Petroleum Ltd. 1,000,000 6,594,336*
BNK Petroleum, Inc. 1,000,000 1,737,823*
Brigham Exploration Co. 400,000 6,152,000*
Canadian Natural Resources Ltd. 690,000 22,928,700^
Cimarex Energy Co. 120,000 8,589,600
EOG Resources, Inc. 130,000 12,788,100
See notes to portfolios of investments and notes to financial statements.
95
GLOBAL RESOURCES FUND
PORTFOLIO OF INVESTMENTS (UNAUDITED) June 30, 2010
COMMON STOCKS SHARES VALUE
OIL & GAS EXPLORATION & PRODUCTION (CONT'D)
- ----------------------------------------------------------------------------------------------
Gran Tierra Energy, Inc. 702,500 $ 3,484,400*
Green Dragon Gas Ltd. 193,631 1,207,705*
HRT Participacoes Em Petroleo (RS) 7,083 10,001,196*@
Ivanhoe Energy, Inc. 1,000,000 1,916,303*
Niko Resources Ltd. 85,000 7,905,547
NiMin Energy Corp. 1,900,000 1,874,031*
Noble Energy, Inc. 200,000 12,066,000
North Peace Energy Corp. 3,233,400 455,601*
Pacific Rubiales Energy Corp. 1,025,000 22,973,557*
Petroamerica Oil Corp. 8,010,000 2,407,778*
Petromanas Energy, Inc. 2,000,000 563,618*
Pioneer Natural Resources Co. 150,000 8,917,500
Range Energy Resources, Inc. 15,000,000 2,536,283*+
Range Resources Corp. 140,000 5,621,000
Royalite Petroleum Co., Inc. 2,266,333 8,159*
Shamaran Petroleum Corp. 15,159,900 5,696,266*
SM Energy Co. 210,000 8,433,600
Southwestern Energy Co. 365,000 14,103,600*
Ultra Petroleum Corp. 210,000 9,292,500*
------------
214,203,653
OIL & GAS REFINING AND MARKETING 0.06%
- ----------------------------------------------------------------------------------------------
Value Creation, Inc. (RS) 336,880 397,591*@
OIL FIELD SERVICES 4.81%
- ----------------------------------------------------------------------------------------------
Acergy S.A., Sponsored ADR 450,000 6,655,500
CARBO Ceramics, Inc. 135,000 9,745,650*
Core Laboratories N.V. 45,000 6,642,450
Oceaneering International, Inc. 160,000 7,184,000*
------------
30,227,600
PLATINUM 0.52%
- ----------------------------------------------------------------------------------------------
Anooraq Resources Corp. 350,000 355,079*
Eastern Platinum Ltd. 3,150,000 2,870,227*
Ivanhoe Nickel and Platinum Ltd. (RS) 15,000 19,821*@
Osmium Holdings S.A. (RS) 104 0*@
------------
3,245,127
SUGAR/ETHANOL 0.00%
- ----------------------------------------------------------------------------------------------
Infinity Bio-Energy Ltd. 682,400 0*@
See notes to portfolios of investments and notes to financial statements.
96
GLOBAL RESOURCES FUND
PORTFOLIO OF INVESTMENTS (UNAUDITED) June 30, 2010
COMMON STOCKS SHARES VALUE
URANIUM 0.61%
- ----------------------------------------------------------------------------------------------
GoviEx Uranium, Inc. (RS) 750,000 $ 2,062,500*@
Uranium Energy Corp. 429,200 1,012,912*
Uranium North Resources Corp. 12,500 822*
Western Uranium Corp. 1,000,000 751,491*
------------
3,827,725
- ----------------------------------------------------------------------------------------------
TOTAL COMMON STOCKS 475,871,664
- ----------------------------------------------------------------------------------------------
(cost $522,542,967)
EXCHANGE-TRADED FUND (ETF) 1.36%
SPDR Gold Trust 70,000 8,517,600*
(cost $8,191,959)
WARRANTS 4.81%
COAL 0.18%
- ----------------------------------------------------------------------------------------------
Bounty Mining Ltd., Warrants (December 2011) 5,500,000 0*@
Coalcorp Mining, Inc., Warrants (February 2011) 1,228,071 5,768*
Coalcorp Mining, Inc., Warrants (August 2011) 885,500 4,159*
Coalcorp Mining, Inc., Warrants (June 2013) 3,803,000 71,448*
Western Coal Corp., Warrants (June 2012) 425,000 838,382*
Xinergy Ltd., Warrants (December 2011) 592,500 207,324*
------------
1,127,081
FINANCIAL SERVICES 0.00%
- ----------------------------------------------------------------------------------------------
Aberdeen International, Inc., Warrants (July 2012) 500,000 25,833*
GENERAL METAL & MINERAL MINING 0.04%
- ----------------------------------------------------------------------------------------------
Baja Mining Corp., Warrants (April 2011) 1,055,500 0*@
Lithium Americas Corp., Warrants (December 2049) 283,333 0*@
Terrane Metals Corp., Warrants (June 2012) 562,500 237,776*
------------
237,776
GOLD & SILVER MINING 3.35%
- ----------------------------------------------------------------------------------------------
Chesapeake Gold Corp., Warrants (February 2012) 53,800 181,431*
Dundee Precious Metals, Inc., Warrants (November 2015) 625,000 1,315,110*
Goldcorp, Inc., Warrants (June 2011) 1,372,941 8,576,448*
Medoro Resources Ltd., Warrants (November 2011) 1,250,000 176,131*
New Gold, Inc., Warrants (April 2012) 88,500 2,910*
See notes to portfolios of investments and notes to financial statements.
97
GLOBAL RESOURCES FUND
PORTFOLIO OF INVESTMENTS (UNAUDITED) June 30, 2010
WARRANTS SHARES VALUE
GOLD & SILVER MINING (CONT'd)
- ----------------------------------------------------------------------------------------------
New Gold, Inc., Warrants (November 2012) 294,000 $ 63,520*
New Gold, Inc., Warrants (June 2017) 822,570 1,066,316*
Orsu Metals Corp., Warrants (March 2011) 660,000 3,100*
Rusoro Mining Ltd., Warrants (November 2011) 216,667 0*@
Rusoro Mining Ltd., Warrants (November 2012) 3,150,000 51,782*
Silver Wheaton Corp., Warrants (December 2010) 731,240 7,796,321*
Silver Wheaton Corp., Warrants (September 2013) 227,744 1,796,900*
------------
21,029,969
GOLD/MINERAL ROYALTY COMPANIES 0.06%
- ----------------------------------------------------------------------------------------------
Franco-Nevada Corp., Warrants (June 2017) 44,000 334,789*
MEDICAL - HOSPITALS 0.01%
- ----------------------------------------------------------------------------------------------
African Medical Investments plc, Warrants (June 2011) 1,162,500 43,412*@
METAL - IRON 0.03%
- ----------------------------------------------------------------------------------------------
Baffinland Iron Mines Corp., Warrants (December 2012) 1,425,000 200,789*
METAL & MINERAL MINING & EXPLORATION 0.00%
- ----------------------------------------------------------------------------------------------
Peregrine Metals Ltd., Warrants (September 2011) 450,000 29,590*
NATURAL RESOURCE TECHNOLOGY 0.00%
- ----------------------------------------------------------------------------------------------
I-Pulse, Inc., Warrants (December 2010) (RS) 15,971 0*@
OIL & GAS DRILLING 0.01%
- ----------------------------------------------------------------------------------------------
Vantage Drilling Co., Warrants (May 2011) 2,461,400 49,228*
OIL & GAS EXPLORATION & PRODUCTION 1.13%
- ----------------------------------------------------------------------------------------------
Africa Oil Corp., Warrants (April 2012) 2,050,000 0*@
Coastal Energy Co., Warrants (July 2010) 250,000 55,779*@
Foothills Resources, Inc., Warrants (September 2011) 633,334 0*@
Gran Tierra Energy, Inc., Warrants (June 2012) 1,550,000 6,060,500*@
HRT Participacoes Em Petroleo, Warrants (November 2013)
(RS) 3,543 0*@
Petroamerica Oil Corp., Warrants (October 2014) 8,000,000 976,939*
Range Energy Resources, Inc., Warrants (October 2011) 15,000,000 0*@
------------
7,093,218
URANIUM 0.00%
- ----------------------------------------------------------------------------------------------
Denison Mines Corp., Warrants (March 2011) 231,050 24,417*
- ----------------------------------------------------------------------------------------------
TOTAL WARRANTS 30,196,102
- ----------------------------------------------------------------------------------------------
(cost $30,698,145)
See notes to portfolios of investments and notes to financial statements.
98
GLOBAL RESOURCES FUND
PORTFOLIO OF INVESTMENTS (UNAUDITED) June 30, 2010
PURCHASED OPTIONS 0.55% CONTRACTS VALUE
COPPER 0.20%
- ----------------------------------------------------------------------------------------------
Freeport-McMoRan Copper & Gold, Inc., Strike Price 60,
Put, Expiration Nov. 2010 (premium $1,188,175) 1,500 $ 1,267,500
EXCHANGE-TRADED FUND 0.35%
- ----------------------------------------------------------------------------------------------
SPDR Metals & Mining ETF, Strike Price 48, Put,
Expiration Sep. 2010 (premium $948,825) 2,000 1,110,000
SPDR Oil & Gas Exploration & Production ETF, Strike
Price 43, Put, Expiration Sep. 2010 (premium
$740,280) 2,000 1,080,000
------------
2,190,000
OIL & GAS EXPLORATION & PRODUCTION 0.00%
- ----------------------------------------------------------------------------------------------
Pacific Rubiales Energy Corp., Strike Price 20, Put,
Expiration July 2010 (premium $531,912) 3,475 17,954
- ----------------------------------------------------------------------------------------------
TOTAL PURCHASED OPTIONS 3,475,454
- ----------------------------------------------------------------------------------------------
(cost $3,409,192)
PRINCIPAL
CONVERTIBLE DEBENTURE 0.78% AMOUNT
METAL & MINERAL MINING 0.78%
- ----------------------------------------------------------------------------------------------
Grupo Empresarial Ibiza S.A., 12.00%, maturity 05/03/11
(RS) $ 4,900,000 4,900,000@
(cost $4,900,000)
- ----------------------------------------------------------------------------------------------
TOTAL SECURITIES 522,960,820
- ----------------------------------------------------------------------------------------------
(cost $569,742,263)
REPURCHASE AGREEMENT 10.62%
Joint Tri-Party Repurchase Agreement, Credit Suisse
Securities USA LLC, 06/30/10, 0.01%, due 07/01/10,
repurchase price $66,667,007, collateralized by U.S.
Treasury securities held in a joint tri-party account
(cost $66,666,988) 66,666,988 66,666,988
- ----------------------------------------------------------------------------------------------
TOTAL INVESTMENTS 93.91% 589,627,808
- ----------------------------------------------------------------------------------------------
(cost $636,409,251)
Other assets and liabilities, net 6.09% 38,239,818
------------
NET ASSETS 100% $627,867,626
------------
See notes to portfolios of investments and notes to financial statements.
99
GLOBAL RESOURCES FUND
PORTFOLIO OF INVESTMENTS (UNAUDITED) June 30, 2010
SHARES SUBJECT
CALL OPTIONS WRITTEN TO CALL VALUE
- ----------------------------------------------------------------------------------------------
Anadarko Petroleum Corp., Strike Price 50, Expiration
Aug. 2010 100,000 $ 84,000
Canadian Natural Resources Ltd., Strike Price 39,
Expiration Sep. 2010 100,000 60,000
Chevron Corp., Strike Price 80, Expiration Sep. 2010 125,000 42,500
Occidental Petroleum Corp., Strike Price 90, Expiration
Aug. 2010 50,000 31,000
- ----------------------------------------------------------------------------------------------
TOTAL CALL OPTIONS WRITTEN $ 217,500
- ----------------------------------------------------------------------------------------------
(premiums received $663,299) (Note 2A)
See notes to portfolios of investments and notes to financial statements.
100
WORLD PRECIOUS MINERALS FUND
PORTFOLIO OF INVESTMENTS (UNAUDITED) June 30, 2010
COMMON STOCKS 81.18% SHARES VALUE
AGRICULTURAL OPERATIONS 0.20%
- ----------------------------------------------------------------------------------------------
Agriterra Ltd. 28,716,944 $ 1,250,845*+
DIAMOND MINING & EXPLORATION 1.06%
- ----------------------------------------------------------------------------------------------
Diagem, Inc. 406,350 0*@
Diamond Fields International Ltd. 448,600 73,745*
Diamonds North Resources Ltd. 2,804,200 493,906*
Lucara Diamond Corp. 1,450,000 1,116,904*
Olivut Resources Ltd. 675,000 399,464*
Petra Diamonds Ltd. 4,000,000 4,265,989*
Rockwell Diamonds, Inc. 1,000,000 65,756*
Rockwell Diamonds, Inc., 144A 2,575,000 169,320*
------------
6,585,084
FINANCIAL SERVICES 1.68%
- ----------------------------------------------------------------------------------------------
Aberdeen International, Inc. 2,386,000 806,876*
Endeavour Financial Corp. 2,642,900 5,461,820*
GMP Capital, Inc. 480,000 4,197,830
Invictus Financial, Inc. 1,027,000 7,048*
------------
10,473,574
GOLD/MINERAL EXPLORATION & DEVELOPMENT 28.64%
- ----------------------------------------------------------------------------------------------
African Gold Group, Inc. 1,500,000 380,442*
Aldridge Minerals, Inc. 1,300,000 940,303*
Amarc Resources Ltd. 695,545 274,415*
Ampella Mining Ltd. 600,000 762,412*
Andean Resources Ltd. 5,962,856 16,900,117*
Atikwa Resources, Inc. 3,062,333 172,599*
AuEx Ventures, Inc. 1,000,000 3,240,806*
Azumah Resources Ltd. 3,750,000 1,269,960*
Brazauro Resources Corp. 3,350,000 4,374,149*
Canaco Resources, Inc. 650,000 580,057*
Candente Gold Corp. 5,310,000 3,292,095*+
Canyon Resources Ltd. 250,000 63,094*
Carnavale Resources Ltd. 3,500,000 1,114,369*
Chesapeake Gold Corp. 1,607,100 11,850,768*
Continental Minerals Corp. 535,000 1,015,171*
Continental Precious Minerals, Inc. 267,000 106,594*
Corona Gold Ltd. 812,500 0*@
Crystallex International Corp. 2,150,000 860,000*
Eastmain Resources, Inc. 675,000 811,611*
Elissa Resources Ltd. (RS) 36,250 0*@
Entree Gold, Inc. 750,000 1,409,046*
Erdene Resource Development Corp. 725,000 204,312*
Extorre Gold Mines Ltd. 1,013,300 2,547,180*
See notes to portfolios of investments and notes to financial statements.
101
WORLD PRECIOUS MINERALS FUND
PORTFOLIO OF INVESTMENTS (UNAUDITED) June 30, 2010
COMMON STOCKS SHARES VALUE
GOLD/MINERAL EXPLORATION & DEVELOPMENT (CONT'D)
- ----------------------------------------------------------------------------------------------
First Point Minerals Corp. 2,423,000 $ 1,183,561*
Fortress Minerals Corp. 2,400,000 287,445*
Gold Summit Corp. 10,000 845*
Golden Alliance Resources Corp. 100,000 69,513*
Golden Arrow Resources Corp. 1,000,000 319,384*
Golden Odyssey Mining, Inc. 2,656,500 237,065*
Golden Predator Corp. 2,000,000 1,014,513*
Grandview Gold, Inc. 1,100,000 61,998*
Grayd Resource Corp. 2,240,000 1,620,215*
Greenock Resources, Inc. 126,200 10,669*
Greystar Resources Ltd. 3,000,000 13,611,385*
Guyana Goldfields, Inc. 1,000,000 6,509,793*
Hainan Mining Corp. plc (RS) 2,018,700 747,827*+@
Helio Resource Corp. 502,000 176,835*
Inca Pacific Resources, Inc. 337,000 56,982*
Kilo Goldmines Ltd. 1,100,000 258,325*
Kings Minerals NL 17,691,517 1,136,286*
Klondex Mines Ltd. 2,600,000 3,858,908*+
Kria Resources, Inc. 268,925 23,999*
Leyshon Resources Ltd. 2,000,000 363,890*
MAG Silver Corp. 515,000 3,178,385*
Malbex Resources, Inc. 1,808,333 679,473*
Mindoro Resources Ltd. 2,984,000 504,551*
Mirasol Resources Ltd. 735,000 1,139,214*
Moss Lake Gold Mines Ltd. 3,182,000 575,393*+
Nautilus Minerals, Inc. 175,000 244,939*
New Pacific Metals Corp. 657,700 475,721*
NGEx Resources, Inc. 3,006,700 1,412,193*
Northern Dynasty Minerals Ltd. 500,000 3,245,503*
Orsu Metals Corp. 2,100,800 355,215*
Pacific North West Capital Corp. 1,291,666 163,802*
Pacific Rim Mining Corp. 5,400,713 981,206*
Pelangio Exploration, Inc. 1,500,000 288,854*
Perseus Mining Ltd. 1,500,000 2,881,332*
Planet Exploration, Inc. 1,020,500 146,190*
PMI Gold Corp. 8,525,000 1,441,454*
Premier Gold Mines Ltd. 1,050,000 4,971,115*
Q2 Gold Resources, Inc. (RS) 201,333 0*@
Queenston Mining, Inc. 400,000 1,439,106*
Radius Gold, Inc. 1,625,000 499,918*
Rainy River Resources Ltd. 926,200 5,690,055*
Reunion Gold Corp. 2,000,000 375,746*
Rochester Resources Ltd. 7,730,000 943,967*+
Romarco Minerals, Inc. 20,695,706 34,410,220*
Rubicon Minerals Corp. 3,900,000 13,408,483*
Rye Patch Gold Corp. 3,800,000 588,981*
See notes to portfolios of investments and notes to financial statements.
102
WORLD PRECIOUS MINERALS FUND
PORTFOLIO OF INVESTMENTS (UNAUDITED) June 30, 2010
COMMON STOCKS SHARES VALUE
GOLD/MINERAL EXPLORATION & DEVELOPMENT (CONT'D)
- ----------------------------------------------------------------------------------------------
San Anton Resource Corp. 1,303,200 $ 208,111*
Shield Mining Ltd. 1,000,000 168,250*
Solitario Exploration & Royalty Corp. 944,522 2,124,964*
St Andrew Goldfields Ltd. 877,549 1,088,126*
Strikepoint Gold, Inc. 950,000 339,110*
Strongbow Exploration, Inc. 880,500 66,169*
Temex Resources Corp. 978,268 257,306*
Terrane Metals Corp. 1,601,000 1,579,118*
Timberline Resources Corp. 321,571 296,031*
Valley High Ventures Ltd. 1,125,000 401,578*
Verena Minerals Corp. 930,500 332,150*
Verona Development Corp. 48,500 0*@
VG Gold Corp. 4,806,501 1,354,516*
Victoria Gold Corp. 1,000,000 619,980*
Virginia Mines, Inc. 675,000 4,514,584*
Wesdome Gold Mines Ltd. 461,700 1,019,205
------------
178,129,152
INTERMEDIATE & JUNIOR GOLD PRODUCERS 16.10%
- ----------------------------------------------------------------------------------------------
Argonaut Gold Ltd. 500,000 1,244,657*
Aurizon Mines Ltd. 287,500 1,420,250*
Avion Gold Corp. 3,900,000 1,813,442*
Centamin Egypt Ltd. 7,400,000 18,003,851*
Centamin Egypt Ltd., 144A 3,000,000 7,298,859*
Centerra Gold, Inc. 500,000 5,504,673*
Century Mining Corp. 2,634,809 1,101,395*
Claude Resources, Inc. 2,080,700 2,228,170*
DRDGOLD Ltd., Sponsored ADR 100,000 435,000*
Dundee Precious Metals, Inc. 1,919,920 8,260,048*
Gran Colombia Gold S.A. (RS) 12,300,000 2,888,545*+@
Great Basin Gold Ltd. 1,750,000 2,975,436*
Kingsgate Consolidated Ltd. 500,000 3,963,015
Lake Shore Gold Corp. 3,088,000 9,282,420*
Medoro Resources Ltd. 22,287,557 14,655,291*+
New Gold, Inc. 100,000 620,920*
Olympus Pacific Minerals, Inc. 5,520,000 1,581,513*
Pan African Resources plc 15,620,000 1,562,491*
Rusoro Mining Ltd. 6,105,000 1,232,986*
Rusoro Mining Ltd., 144A 1,120,000 226,199*
San Gold Corp. 2,850,000 12,181,203*
SEMAFO, Inc. 223,000 1,686,299*
------------
100,166,663
MEDICAL - HOSPITALS 0.24%
- ----------------------------------------------------------------------------------------------
African Medical Investments plc 4,489,000 1,507,511*
See notes to portfolios of investments and notes to financial statements.
103
WORLD PRECIOUS MINERALS FUND
PORTFOLIO OF INVESTMENTS (UNAUDITED) June 30, 2010
COMMON STOCKS SHARES VALUE
METAL & MINERAL MINING & EXPLORATION 2.74%
- ----------------------------------------------------------------------------------------------
Augusta Resource Corp. 600,000 $ 930,000*
Baja Mining Corp. 685,450 399,210*
Breakwater Resources Ltd. 45,000 104,410*
Calibre Mining Corp. 900,000 101,451*
Candente Copper Corp. 300,000 101,451*
Catalyst Copper Corp. 1,564,000 176,300*
Dia Bras Exploration, Inc. 1,404,000 250,585*
Farallon Mining Ltd. 700,000 230,144*
Imperial Metals Corp. 176,500 2,649,448*
Linear Metals Corp. 1,004,410 122,656*
Mines Management, Inc. 825,400 1,481,479*
Natasa Mining Ltd. 1,306,449 1,922,235*
North American Tungsten Corp. 1,282,000 180,640*
Odyssey Resources Ltd. 414,900 67,231*
Prophecy Resource Corp. 133,400 60,776*
Revett Minerals, Inc. 3,200,500 901,930*
Roca Mines, Inc. 1,000,000 291,203*
Sable Mining Africa Ltd. 18,621,041 5,343,852*
Toledo Mining Corp. plc 432,900 155,217*
TVI Pacific, Inc. 15,361,428 1,298,698*
Uranium North Resources Corp. 517,035 33,998*
Wallbridge Mining Co., Ltd. 1,541,000 238,847*
------------
17,041,761
MINING SERVICES 0.56%
- ----------------------------------------------------------------------------------------------
Energold Drilling Corp. 700,000 1,341,412*
Major Drilling Group International, Inc. 105,000 2,139,355
------------
3,480,767
OIL & GAS EXPLORATION & PRODUCTION 2.61%
- ----------------------------------------------------------------------------------------------
Alange Energy Corp. 2,000,000 657,555*
Atlas Energy, Inc. 300,000 8,121,000*
Big Sky Energy Corp. 2,000,000 0*@
Pacific Rubiales Energy Corp. 330,000 7,396,365*
------------
16,174,920
PLATINUM 1.40%
- ----------------------------------------------------------------------------------------------
Anooraq Resources Corp. 3,150,000 3,234,433*
Eastern Platinum Ltd. 4,427,000 4,033,808*
Ivanhoe Nickel and Platinum Ltd. (RS) 135,000 178,389*@
Osmium Holdings S.A. (RS) 891 0*@
Platinum Group Metals Ltd. 750,000 1,275,187*
------------
8,721,817
See notes to portfolios of investments and notes to financial statements.
104
WORLD PRECIOUS MINERALS FUND
PORTFOLIO OF INVESTMENTS (UNAUDITED) June 30, 2010
COMMON STOCKS SHARES VALUE
PRECIOUS METALS 0.50%
- ----------------------------------------------------------------------------------------------
North American Palladium Ltd. 1,000,000 $ 3,110,000*
SENIOR GOLD PRODUCERS 22.02%
- ----------------------------------------------------------------------------------------------
Agnico-Eagle Mines Ltd. 330,000 20,057,400
Barrick Gold Corp. 175,000 7,946,750*
IAMGOLD Corp. 235,000 4,154,800
Kinross Gold Corp. 170,500 2,914,298
Lihir Gold Ltd., Sponsored ADR 110,000 3,958,900
Newmont Mining Corp. 139,000 8,581,860*
Randgold Resources Ltd., Sponsored ADR 625,000 59,218,750*
Red Back Mining, Inc. 507,500 12,828,731*
Red Back Mining, Inc. 144A 685,000 17,315,626*
------------
136,977,115
SILVER MINING 3.41%
- ----------------------------------------------------------------------------------------------
Coeur d'Alene Mines Corp. 307,000 4,844,460*
ECU Silver Mining, Inc. 1,000,000 582,406*
Fortuna Silver Mines, Inc. 1,250,000 2,454,088*
Polymetal, Sponsored GDR 224,000 2,780,937*
Scorpio Mining Corp. 1,217,000 765,948*
Silvercorp Metals, Inc. 1,488,500 9,787,704
------------
21,215,543
WIRELESS EQUIPMENT 0.02%
- ----------------------------------------------------------------------------------------------
Active Control Technology, Inc. 4,575,000 150,416*
- ----------------------------------------------------------------------------------------------
TOTAL COMMON STOCKS 504,985,168
- ----------------------------------------------------------------------------------------------
(cost $445,166,602)
EXCHANGE-TRADED FUNDS (ETF) 3.46%
ETFS Platinum Trust 8,400 1,281,630*
SPDR Gold Trust 126,000 15,331,680*
Sprott Physical Gold Trust 417,000 4,895,580*
- ----------------------------------------------------------------------------------------------
TOTAL EXCHANGE-TRADED FUNDS 21,508,890
- ----------------------------------------------------------------------------------------------
(cost $20,087,359)
See notes to portfolios of investments and notes to financial statements.
105
WORLD PRECIOUS MINERALS FUND
PORTFOLIO OF INVESTMENTS (UNAUDITED) June 30, 2010
WARRANTS 8.63% SHARES VALUE
FINANCIAL SERVICES 0.14%
- ----------------------------------------------------------------------------------------------
Endeavour Financial Corp., Warrants (February 2014) 1,110,000 $ 855,009*
GOLD/MINERAL EXPLORATION & DEVELOPMENT 0.26%
- ----------------------------------------------------------------------------------------------
Candente Gold Corp., Warrants (December 2011) 2,437,500 137,382*@
Carnavale Resources Ltd., Warrants (February 2013) 3,500,000 485,822*
Chesapeake Gold Corp., Warrants (February 2012) 189,199 638,039*
Crystallex International Corp., Warrants (December
2049) 162,500 0*@
Fortress Minerals Corp., Warrants (December 2010) 1,400,000 0*@
Golden Alliance Resources Corp., Warrants (October
2010)) 100,000 31,938*@
Golden Arrow Resources Corp., Warrants (October 2010) 1,000,000 0*@
Hainan Mining Corp. plc, Warrants (May 2011) (RS) 313,700 34,676*@
Hainan Mining Corp. plc, Warrants (August 2011) (RS) 1,705,000 188,467*@
Malbex Resources, Inc., Warrants (April 2011) 666,666 0*@
Orsu Metals Corp., Warrants (March 2011) 4,112,000 19,313*
Orsu Metals Corp., Warrants (April 2012) 900,000 0*@
Rochester Resources Ltd., Warrants (November 2011) 6,630,000 0*@
Rye Patch Gold Corp., Warrants (December 2011) 1,800,000 0*@
Terrane Metals Corp., Warrants (June 2012) 219,000 92,574*
Timberline Resources Corp., Warrants (August 2011) 428,571 0*@
------------
1,628,211
GOLD/MINERAL ROYALTY COMPANIES 0.18%
- ----------------------------------------------------------------------------------------------
Franco-Nevada Corp., Warrants (March 2012) 73,600 387,168*
Franco-Nevada Corp., Warrants (June 2017) 94,700 720,558*
Gold Wheaton Gold Corp., Warrants (July 2013) 126,200 23,117*
------------
1,130,843
INTERMEDIATE & JUNIOR GOLD PRODUCERS 0.87%
- ----------------------------------------------------------------------------------------------
Argonaut Gold Ltd., Warrants (December 2012) 250,000 102,743*
Avion Gold Corp., Warrants (May 2011) 1,950,000 0*@
Dundee Precious Metals, Inc., Warrants (November 2015) 1,125,000 2,367,197*
Lake Shore Gold Corp., Warrants (December 2010) 73,000 130,290*@
Medoro Resources Ltd., Warrants (November 2011) 5,000,000 704,523*
New Gold, Inc., Warrants (April 2012) 2,495,100 82,033*
New Gold, Inc., Warrants (November 2012) 326,000 70,434*
New Gold, Inc., Warrants (June 2017) 1,452,430 1,882,818*
Rusoro Mining Ltd., Warrants (November 2011) 600,000 0*@
Rusoro Mining Ltd., Warrants (November 2012) 6,330,750 104,070*
------------
5,444,108
MEDICAL - HOSPITALS 0.01%
- ----------------------------------------------------------------------------------------------
African Medical Investments plc, Warrants (June 2011) 2,125,000 79,356*@
See notes to portfolios of investments and notes to financial statements.
106
WORLD PRECIOUS MINERALS FUND
PORTFOLIO OF INVESTMENTS (UNAUDITED) June 30, 2010
WARRANTS SHARES VALUE
METAL & MINERAL MINING & EXPLORATION 0.04%
- ----------------------------------------------------------------------------------------------
Baja Mining Corp., Warrants (April 2011) 527,750 $ 0*@
Coalcorp Mining, Inc., Warrants (February 2011) 113,214 532*
Denison Mines Corp., Warrants (March 2011) 206,295 21,801*
Mines Management, Inc., Warrants (April 2012) 795,800 236,750*
------------
259,083
SENIOR GOLD PRODUCERS 5.02%
- ----------------------------------------------------------------------------------------------
Agnico-Eagle Mines Ltd., Warrants (December 2013) 141,650 3,420,847*
Goldcorp, Inc., Warrants (June 2011) 3,684,302 23,014,991*
Kinross Gold Corp., Warrants (September 2011) 1,615,000 2,184,585*
Kinross Gold Corp., Warrants (September 2013) 947,571 2,590,232*
------------
31,210,655
SILVER MINING 2.10%
- ----------------------------------------------------------------------------------------------
Hecla Mining Co., Warrants (August 2014) 315,250 857,480*@
Silver Wheaton Corp., Warrants (December 2010) 838,820 8,943,316*
Silver Wheaton Corp., Warrants (September 2013) 411,995 3,250,641*
------------
13,051,437
- ----------------------------------------------------------------------------------------------
TOTAL WARRANTS 53,658,702
- ----------------------------------------------------------------------------------------------
(cost $60,575,853)
SPECIAL WARRANTS 0.00%
GOLD/MINERAL EXPLORATION & DEVELOPMENT 0.00%
- ----------------------------------------------------------------------------------------------
Miocene Metals Ltd., Special Warrants (October 2011)
(RS) 256,833 0*@
Western Exploration & Development Ltd., Special
Warrants (December 2049) (RS) 600,000 0*@
- ----------------------------------------------------------------------------------------------
TOTAL SPECIAL WARRANTS 0
- ----------------------------------------------------------------------------------------------
(cost $300,000)
RIGHTS 0.01%
GOLD/MINERAL EXPLORATION & DEVELOPMENT 0.02%
- ----------------------------------------------------------------------------------------------
San Anton Resource Corp. (cost $0) 1,303,200 94,874
See notes to portfolios of investments and notes to financial statements.
107
WORLD PRECIOUS MINERALS FUND
PORTFOLIO OF INVESTMENTS (UNAUDITED) June 30, 2010
PURCHASED OPTIONS 0.03% CONTRACTS VALUE
EXCHANGE-TRADED FUND 0.03%
- ----------------------------------------------------------------------------------------------
Market Vector Junior Gold, Strike Price 25, Put,
Expiration July 2010 (premium $145,275) 1,000 $ 20,000
Market Vector Junior Gold, Strike Price 27, Put,
Expiration Aug. 2010 (premium $228,610) 1,000 150,000
------------
170,000
OIL & GAS EXPLORATION & PRODUCTION 0.00%
- ----------------------------------------------------------------------------------------------
Pacific Rubiales Energy Corp., Strike Price 20, Put,
Expiration July 2010 (premium $318,998) 2,085 10,772
- ----------------------------------------------------------------------------------------------
TOTAL PURCHASED OPTIONS 180,772
- ----------------------------------------------------------------------------------------------
(cost $692,883)
- ----------------------------------------------------------------------------------------------
TOTAL SECURITIES 580,428,406
- ----------------------------------------------------------------------------------------------
(cost $526,822,697)
PRINCIPAL
REPURCHASE AGREEMENT 6.35% AMOUNT
Joint Tri-Party Repurchase Agreement, Banc of America
Securities LLC Merrill Lynch, 06/30/10, 0.01%, due
07/01/10, repurchase price $39,471,116,
collateralized by U.S. Treasury securities held in a
joint tri-party account (cost $39,471,105) $39,471,105 39,471,105
- ----------------------------------------------------------------------------------------------
TOTAL INVESTMENTS 99.66% 619,899,511
- ----------------------------------------------------------------------------------------------
(cost $566,293,802)
Other assets and liabilities, net 0.34% 2,134,865
------------
NET ASSETS 100% $622,034,376
------------
See notes to portfolios of investments and notes to financial statements.
108
GOLD & PRECIOUS METALS FUND
PORTFOLIO OF INVESTMENTS (UNAUDITED) June 30, 2010
COMMON STOCKS 76.35% SHARES VALUE
DIAMOND MINING & EXPLORATION 0.45%
- ----------------------------------------------------------------------------------------
Petra Diamonds Ltd. 1,000,000 $ 1,066,497*
FINANCIAL SERVICES 1.89%
- ----------------------------------------------------------------------------------------
Aberdeen International, Inc. 52,250 17,669*
Endeavour Financial Corp. 1,664,700 3,440,270*
GMP Capital, Inc. 112,000 979,494
-----------
4,437,433
GOLD MINING 63.99%
- ----------------------------------------------------------------------------------------
Agnico-Eagle Mines Ltd. 230,000 13,979,400
Aurizon Mines Ltd. 212,500 1,049,750*
Barrick Gold Corp. 375,000 17,028,750
Centamin Egypt Ltd. 3,500,000 8,515,335*
Centamin Egypt Ltd., 144A 2,000,000 4,865,906*
Centerra Gold, Inc. 250,000 2,752,337*
Century Mining Corp. 509,512 212,985*
Claude Resources, Inc. 3,250,000 3,480,344*
DRDGOLD Ltd., Sponsored ADR 500,000 2,175,000
Dundee Precious Metals, Inc. 1,771,070 7,619,652*
Eldorado Gold Corp. 250,000 4,490,000
Gran Colombia Gold S.A. (RS) 4,100,000 962,848*@
Harmony Gold Mining Co., Ltd., Sponsored ADR 200,000 2,114,000
IAMGOLD Corp. 165,000 2,917,200
Jaguar Mining, Inc. 100,000 887,699*
Kingsgate Consolidated Ltd. 350,000 2,774,111
Kinross Gold Corp. 200,000 3,418,000
Kirkland Lake Gold, Inc. 250,000 1,991,452*
Lake Shore Gold Corp. 375,000 1,127,237*
Lihir Gold Ltd., Sponsored ADR 82,000 2,951,180
Medoro Resources Ltd. 2,630,000 1,729,369*
New Gold, Inc. 200,000 1,241,839*
Newmont Mining Corp. 208,000 12,841,920
Pan African Resources plc 10,570,000 1,057,332*
Randgold Resources Ltd., Sponsored ADR 246,000 23,308,500
Red Back Mining, Inc. 310,500 7,848,908*
Red Back Mining, Inc., 144A 215,000 5,434,831*
Richmont Mines, Inc. 600,000 2,652,000*
Rusoro Mining Ltd. 930,000 187,826*
San Gold Corp. 1,425,000 6,090,601*
SEMAFO, Inc. 277,000 2,094,641*
Troy Resources NL 284,850 584,831
-----------
150,385,784
See notes to portfolios of investments and notes to financial statements.
109
GOLD & PRECIOUS METALS FUND
PORTFOLIO OF INVESTMENTS (UNAUDITED) June 30, 2010
COMMON STOCKS SHARES VALUE
GOLD/MINERAL ROYALTY COMPANIES 1.30%
- ----------------------------------------------------------------------------------------
Franco-Nevada Corp. 100,000 $ 3,043,540
MEDICAL - HOSPITALS 0.27%
- ----------------------------------------------------------------------------------------
African Medical Investments plc 1,910,000 641,423*
MINING SERVICES 0.52%
- ----------------------------------------------------------------------------------------
Major Drilling Group International, Inc. 60,000 1,222,488
OIL & GAS EXPLORATION & PRODUCTION 0.71%
- ----------------------------------------------------------------------------------------
Canadian Natural Resources Ltd. 50,000 1,661,500^
PLATINUM 0.87%
- ----------------------------------------------------------------------------------------
Eastern Platinum Ltd. 2,255,000 2,054,718*
PRECIOUS METALS 0.46%
- ----------------------------------------------------------------------------------------
North American Palladium Ltd. 350,000 1,088,500*
SILVER MINING 5.89%
- ----------------------------------------------------------------------------------------
Coeur d'Alene Mines Corp. 202,500 3,195,450*
First Majestic Silver Corp. 500,000 2,010,239*
Fortuna Silver Mines, Inc. 1,000,000 1,963,271*
Polymetal, Sponsored GDR 144,000 1,787,745*
Silvercorp Metals, Inc. 744,000 4,892,208
-----------
13,848,913
- ----------------------------------------------------------------------------------------
TOTAL COMMON STOCKS 179,450,796
- ----------------------------------------------------------------------------------------
(cost $143,449,293)
EXCHANGE-TRADED FUNDS (ETF) 5.21%
ETFS Platinum Trust 5,600 854,420*
SPDR Gold Trust 74,000 9,004,320*
Sprott Physical Gold Trust 203,000 2,383,220*
- ----------------------------------------------------------------------------------------
TOTAL EXCHANGE-TRADED FUNDS 12,241,960
- ----------------------------------------------------------------------------------------
(cost $11,698,574)
See notes to portfolios of investments and notes to financial statements.
110
GOLD & PRECIOUS METALS FUND
PORTFOLIO OF INVESTMENTS (UNAUDITED) June 30, 2010
WARRANTS 9.99% SHARES VALUE
FINANCIAL SERVICES 0.13%
- ----------------------------------------------------------------------------------------
Endeavour Financial Corp., Warrants (February 2014) 407,000 $ 313,504*
GOLD MINING 6.39%
- ----------------------------------------------------------------------------------------
Agnico-Eagle Mines Ltd., Warrants (December 2013) 93,350 2,254,403*
Crystallex International Corp., Warrants (December 2049) 62,500 0*@
Dundee Precious Metals, Inc., Warrants (June 2012) 27,000 2,536*
Dundee Precious Metals, Inc., Warrants (November 2015) 1,107,800 2,331,006*
Goldcorp, Inc., Warrants (June 2011) 1,000,584 6,250,419*
Kinross Gold Corp., Warrants (September 2011) 1,001,000 1,354,037*
Kinross Gold Corp., Warrants (September 2013) 773,734 2,115,040*
Medoro Resources Ltd., Warrants (November 2011) 100,000 14,090*
New Gold, Inc., Warrants (April 2012) 3,078,400 101,211*
New Gold, Inc., Warrants (November 2012) 1,082,500 233,878*
New Gold, Inc., Warrants (June 2017) 251,800 326,414*
Rusoro Mining Ltd., Warrants (November 2012) 1,568,750 25,788*
-----------
15,008,822
GOLD/MINERAL ROYALTY COMPANIES 0.36%
- ----------------------------------------------------------------------------------------
Franco-Nevada Corp., Warrants (March 2012) 92,700 487,643*
Franco-Nevada Corp., Warrants (June 2017) 44,700 340,115*
Gold Wheaton Gold Corp., Warrants (July 2013) 125,000 22,897*
-----------
850,655
MEDICAL - HOSPITALS 0.01%
- ----------------------------------------------------------------------------------------
African Medical Investments plc, Warrants (June 2011) 912,500 34,076*@
METAL & MINERAL MINING 0.01%
- ----------------------------------------------------------------------------------------
Mines Management, Inc., Warrants (April 2012) 44,000 13,090*
SILVER MINING 3.09%
- ----------------------------------------------------------------------------------------
Hecla Mining Co., Warrants (August 2014) 169,750 461,720*@
Silver Wheaton Corp., Warrants (December 2010) 232,840 2,482,489*
Silver Wheaton Corp., Warrants (September 2013) 546,006 4,307,988*
-----------
7,252,197
- ----------------------------------------------------------------------------------------
TOTAL WARRANTS 23,472,344
- ----------------------------------------------------------------------------------------
(cost $19,212,039)
- ----------------------------------------------------------------------------------------
TOTAL SECURITIES 215,165,100
- ----------------------------------------------------------------------------------------
(cost $174,359,906)
See notes to portfolios of investments and notes to financial statements.
111
GOLD & PRECIOUS METALS FUND
PORTFOLIO OF INVESTMENTS (UNAUDITED) June 30, 2010
PRINCIPAL
REPURCHASE AGREEMENT 6.21% AMOUNT VALUE
Joint Tri-Party Repurchase Agreement, Banc of America
Securities LLC Merrill Lynch, 06/30/10, 0.01%, due
07/01/10, repurchase price $14,594,290, collateralized
by U.S. Treasury securities held in a joint tri-party
account (cost $14,594,286) $14,594,286 $14,594,286
- ----------------------------------------------------------------------------------------
TOTAL INVESTMENTS 97.76% 229,759,386
- ----------------------------------------------------------------------------------------
(cost $188,954,192)
Other assets and liabilities, net 2.24% 5,257,542
------------
NET ASSETS 100% $235,016,928
------------
SHARES SUBJECT
CALL OPTIONS WRITTEN TO CALL VALUE
- ----------------------------------------------------------------------------------------
Canadian Natural Resources Ltd., Strike Price 39,
Expiration Sep. 2010 10,000 $ 6,000
(premiums received $15,950) (Note 2A)
See notes to portfolios of investments and notes to financial statements.
112
EASTERN EUROPEAN FUND
PORTFOLIO OF INVESTMENTS (UNAUDITED) June 30, 2010
COMMON STOCKS 87.65% SHARES VALUE
AIRPORT DEVELOPMENT 0.47%
- -------------------------------------------------------------------------------------------
TAV Havalimanlari Holding A.S. 500,000 $ 1,764,240*
APPLIANCES 1.69%
- -------------------------------------------------------------------------------------------
Arcelik 1,500,000 6,269,094
AUTO MANUFACTURERS 1.90%
- -------------------------------------------------------------------------------------------
Tofas Turk Otomobil Fabrikasi A.S. 2,100,000 7,065,197
BUILDING PRODUCTS 0.65%
- -------------------------------------------------------------------------------------------
Akcansa Cimento A.S. 600,000 2,414,614
CELLULAR TELECOMMUNICATIONS 2.33%
- -------------------------------------------------------------------------------------------
Mobile TeleSystems, Sponsored ADR 452,500 8,669,900
COMMERCIAL BANKS - NON US 27.13%
- -------------------------------------------------------------------------------------------
Albaraka Turk Katilim Bankasi A.S. 1,500,000 2,757,338
Bank Pekao S.A. 120,000 5,466,731
National Bank of Greece S.A., Sponsored ADR 1,000,000 2,170,000
OTP Bank Nyrt. plc 300,000 6,038,198*
Powszechna Kasa Oszczednosci Bank Polski S.A. 175,000 1,864,475
Sberbank RF 16,607,095 39,937,307@
Turkiye Garanti Bankasi A.S. 4,300,082 17,814,316
Turkiye Halk Bankasi A.S. 650,000 4,787,587
Turkiye Is Bankasi, Class C 2,711,185 8,393,524
Turkiye Sinai Kalkinma Bankasi A.S. 2,000,000 2,217,150
VTB Bank OJSC, Sponsored GDR 2,000,000 9,459,936
--------------
100,906,562
DIVERSIFIED METALS & MINING 1.39%
- -------------------------------------------------------------------------------------------
JSC MMC Norilsk Nickel, Sponsored ADR 300,000 4,291,392*
Lysander Minerals Corp. 500,000 89,239
Orsu Metals Corp. 4,719,740 798,040*
--------------
5,178,671
DIVERSIFIED OPERATIONS 1.08%
- -------------------------------------------------------------------------------------------
Haci Omer Sabanci Holding A.S. 1,001,729 4,007,769
ELECTRIC - INTEGRATED 1.61%
- -------------------------------------------------------------------------------------------
Polska Grupa Energetyczna S.A. 975,000 6,004,163
See notes to portfolios of investments and notes to financial statements.
113
EASTERN EUROPEAN FUND
PORTFOLIO OF INVESTMENTS (UNAUDITED) June 30, 2010
COMMON STOCKS SHARES VALUE
ELECTRIC UTILITY 0.96%
- -------------------------------------------------------------------------------------------
CEZ A.S. 86,471 $ 3,550,906
FOOD - MEAT PRODUCTS 0.58%
- -------------------------------------------------------------------------------------------
Cherkizovo Group, Sponsored GDR 150,000 2,139,790*
GOLD MINING 1.37%
- -------------------------------------------------------------------------------------------
Centerra Gold, Inc. 250,000 2,752,337*
Dundee Precious Metals, Inc. 543,552 2,338,517*
--------------
5,090,854
INTERMEDIATE & JUNIOR GOLD PRODUCERS 0.97%
- -------------------------------------------------------------------------------------------
Eldorado Gold Corp. 200,000 3,592,000
INVESTMENT COMPANIES 0.11%
- -------------------------------------------------------------------------------------------
Vostok Nafta Investment Ltd. 130,000 400,461*
MEDICAL - DRUGS 2.71%
- -------------------------------------------------------------------------------------------
Pharmstandard, Sponsored GDR 300,000 6,544,375*
Richter Gedeon Nyrt. 20,000 3,536,638
--------------
10,081,013
METAL PROCESSING & FABRICATION 0.29%
- -------------------------------------------------------------------------------------------
VSMPO-AVISMA Corp. 11,434 1,074,225@
OIL - FIELD SERVICES 0.70%
- -------------------------------------------------------------------------------------------
Eurasia Drilling Co. Ltd., Sponsored GDR 135,000 2,597,715
OIL & GAS - INTEGRATED 13.11%
- -------------------------------------------------------------------------------------------
Gazprom OAO, Sponsored ADR 593,901 11,171,278
Lukoil OAO, Sponsored ADR 236,810 12,180,317
MOL Hungarian Oil & Gas Nyrt. 25,000 2,063,323
Rosneft Oil Co. OJSC, Sponsored GDR 2,617,309 15,931,665
Tatneft, Sponsored ADR 35,000 978,353
TNK-BP Holding 3,126,500 6,434,790
--------------
48,759,726
OIL & GAS EXPLORATION & PRODUCTION 5.96%
- -------------------------------------------------------------------------------------------
Alliance Oil Co. Ltd. 300,000 3,315,043*
BNK Petroleum, Inc. 500,000 868,911*
NovaTek OAO, Sponsored GDR 253,477 17,981,723
--------------
22,165,677
See notes to portfolios of investments and notes to financial statements.
114
EASTERN EUROPEAN FUND
PORTFOLIO OF INVESTMENTS (UNAUDITED) June 30, 2010
COMMON STOCKS SHARES VALUE
REAL ESTATE 1.59%
- -------------------------------------------------------------------------------------------
Globe Trade Centre S.A. 300,000 $ 2,041,894*
LSR Group OJSC, GDR 477,100 3,552,393*
PIK Group, Sponsored GDR 100,000 334,136*
--------------
5,928,423
RETAIL 5.11%
- -------------------------------------------------------------------------------------------
Eurocash S.A. 500,000 3,183,573
Magnit OAO, Sponsored GDR 400,000 6,846,737
X5 Retail Group N.V., Sponsored GDR 270,000 8,970,782*
--------------
19,001,092
RETAIL - FOOD 0.74%
- -------------------------------------------------------------------------------------------
BIM Birlesik Magazalar A.S. 100,000 2,762,923
SILVER MINING 1.25%
- -------------------------------------------------------------------------------------------
Polymetal, Sponsored GDR 375,000 4,655,587*
STEEL - PRODUCERS 8.69%
- -------------------------------------------------------------------------------------------
Evraz Group S.A., Sponsored GDR 100,000 2,297,694*
Magnitogorsk Iron & Steel Works, Sponsored GDR 400,000 3,637,685
Mechel, Sponsored ADR 600,000 10,884,000
Novolipetsk Steel, Sponsored GDR 350,000 8,960,179
OAO TMK, Sponsored GDR 450,000 6,552,036*
--------------
32,331,594
TELECOMMUNICATIONS 4.25%
- -------------------------------------------------------------------------------------------
Hellenic Telecommunications Organization S.A.,
Sponsored ADR 250,000 935,000
Sistema JSFC, Sponsored GDR 325,000 7,438,337
Turk Telekomunikasyon A.S. 850,000 2,693,607
VimpelCom Ltd., Sponsored ADR 293,157 4,743,280*
--------------
15,810,224
TRANSPORTATION 1.01%
- -------------------------------------------------------------------------------------------
Novorossiysk Sea Trade Port, Sponsored GDR 350,000 3,769,281
- -------------------------------------------------------------------------------------------
TOTAL COMMON STOCKS 325,991,701
- -------------------------------------------------------------------------------------------
(cost $290,461,845)
See notes to portfolios of investments and notes to financial statements.
116
EASTERN EUROPEAN FUND
PORTFOLIO OF INVESTMENTS (UNAUDITED) June 30, 2010
PREFERRED STOCKS 0.93% SHARES VALUE
OIL & GAS EXPLORATION & PRODUCTION 0.65%
- -------------------------------------------------------------------------------------------
Surgutneftegaz, Preferred Stock 5,529,631 $ 2,411,538*@
STEEL - PRODUCERS 0.28%
- -------------------------------------------------------------------------------------------
Mechel, Preferred Stock, ADR 150,000 1,039,500
- -------------------------------------------------------------------------------------------
TOTAL PREFERRED STOCKS 3,451,038
- -------------------------------------------------------------------------------------------
(cost $2,986,447)
WARRANTS 0.28%
DIVERSIFIED METALS & MINING 0.00%
- -------------------------------------------------------------------------------------------
Orsu Metals Corp., Warrants (April 2012) 2,012,500 0*@
GOLD MINING 0.28%
- -------------------------------------------------------------------------------------------
Dundee Precious Metals, Inc., Warrants (November
2015) 500,000 1,052,088*
- -------------------------------------------------------------------------------------------
TOTAL WARRANTS 1,052,088
- -------------------------------------------------------------------------------------------
(cost $0)
PURCHASED OPTIONS 0.63% CONTRACTS
EXCHANGE-TRADED FUND 0.63%
- -------------------------------------------------------------------------------------------
Market Vectors Russia ETF, Strike Price 28, Put,
Expiration July 2010 (premium $388,000) 3,000 285,000
Market Vectors Russia ETF, Strike Price 29, Put,
Expiration July 2010 (premium $712,360) 3,000 435,000
Market Vectors Russia ETF, Strike Price 29, Put,
Expiration Aug. 2010 (premium $1,183,000) 5,000 1,300,000
SPDR Gold Trust, Strike Price 120, Call, Expiration
July 2010 (premium $405,500) 1,000 305,000
- -------------------------------------------------------------------------------------------
TOTAL PURCHASED OPTIONS 2,325,000
- -------------------------------------------------------------------------------------------
(cost $2,688,860)
- -------------------------------------------------------------------------------------------
TOTAL SECURITIES 332,819,827
- -------------------------------------------------------------------------------------------
(cost $296,137,152)
See notes to portfolios of investments and notes to financial statements.
117
EASTERN EUROPEAN FUND
PORTFOLIO OF INVESTMENTS (UNAUDITED) JUNE 30, 2010
PRINCIPAL
REPURCHASE AGREEMENT 7.47% AMOUNT VALUE
Joint Tri-Party Repurchase Agreement, UBS Financial
Securities, Inc., 06/30/10, 0.02%, due 07/01/10,
repurchase price $27,763,197, collateralized by
U.S. Treasury securities held in a joint tri-party
account (cost $27,763,182) $27,763,182 $ 27,763,182
- -------------------------------------------------------------------------------------------
TOTAL INVESTMENTS 96.97% 360,583,009
- -------------------------------------------------------------------------------------------
(cost $323,900,334)
Other assets and liabilities, net 3.04% 11,292,845
------------
NET ASSETS 100% $371,875,854
------------
See notes to portfolios of investments and notes to financial statements.
117
GLOBAL EMERGING MARKETS FUND
PORTFOLIO OF INVESTMENTS (UNAUDITED) June 30, 2010
COMMON STOCKS 83.19% SHARES VALUE
AIRLINES 0.72%
- --------------------------------------------------------------------------------------
China Eastern Airlines Corp. Ltd., H shares 200,000 $ 84,597*
AIRPORT DEVELOPMENT 0.60%
- --------------------------------------------------------------------------------------
TAV Havalimanlari Holding A.S. 20,000 70,570*
AUTO MANUFACTURERS 0.86%
- --------------------------------------------------------------------------------------
Tofas Turk Otomobil Fabrikasi A.S. 30,000 100,931
AUTO PARTS & EQUIPMENT 0.37%
- --------------------------------------------------------------------------------------
China Automotive Systems, Inc. 2,500 44,000*
BREWERY 2.45%
- --------------------------------------------------------------------------------------
Compania Cervecerias Unidas S.A., Sponsored ADR 2,000 86,180
Compania de Bebidas das Americas, Sponsored ADR 2,000 202,020
-----------
288,200
BROADCASTING & CABLE TV 1.11%
- --------------------------------------------------------------------------------------
Grupo Televisa S.A., Sponsored ADR 7,500 130,575
BUILDING & CONSTRUCTION 1.30%
- --------------------------------------------------------------------------------------
Aveng Ltd. 17,500 78,022
Murray & Roberts Holdings Ltd. 15,000 75,468
-----------
153,490
BUILDING PRODUCTS 1.50%
- --------------------------------------------------------------------------------------
Akcansa Cimento A.S. 20,000 80,487
Semen Gresik Persero Tbk PT 100,000 95,688
-----------
176,175
CELLULAR TELECOMMUNICATIONS 4.98%
- --------------------------------------------------------------------------------------
America Movil SAB de C.V., Series L, Sponsored ADR 4,000 190,000
MTN Group Ltd. 7,954 104,272
Tim Participacoes S.A., Sponsored ADR 5,000 135,700
Vivo Participacoes S.A., Sponsored ADR 6,000 155,520
-----------
585,492
COMMERCIAL BANKS - NON US 10.28%
- --------------------------------------------------------------------------------------
Banco do Brasil S.A. 7,500 102,396
Bank of Nova Scotia 3,000 138,060
Itau Unibanco Banco Multiplo 9,337 168,071
National Bank of Greece S.A., Sponsored ADR 50,000 108,500
OTP Bank Nyrt. plc 7,000 140,891*
See notes to portfolios of investments and notes to financial statements.
118
GLOBAL EMERGING MARKETS FUND
PORTFOLIO OF INVESTMENTS (UNAUDITED) June 30, 2010
COMMON STOCKS SHARES VALUE
COMMERCIAL BANKS - NON US (CONT'D)
- --------------------------------------------------------------------------------------
Sberbank RF 90,000 @ 216,435
State Bank of India Ltd., Sponsored GDR 2,000 199,358
Turkiye Is Bankasi, Class C 43,835 135,708
-----------
1,209,419
DEPARTMENT STORES 3.18%
- --------------------------------------------------------------------------------------
Lojas Renner S.A. 13,769 373,681
DIVERSIFIED METALS & MINING 0.35%
- --------------------------------------------------------------------------------------
Orsu Metals Corp. 243,083 41,102*
E-COMMERCE 2.81%
- --------------------------------------------------------------------------------------
Ctrip.com International Ltd., Sponsored ADR 6,000 225,360
MercadoLibre, Inc. 2,000 105,100*
-----------
330,460
ELECTRIC - INTEGRATED 1.31%
- --------------------------------------------------------------------------------------
Polska Grupa Energetyczna S.A. 25,000 153,953
ELECTRIC PRODUCTS - MISCELLANEOUS 0.78%
- --------------------------------------------------------------------------------------
LG Innotek Co., Ltd. 700 92,031
ELECTRONICS & COMPONENTS 5.43%
- --------------------------------------------------------------------------------------
China High Speed Transmission Equipment Group Co., Ltd. 45,000 94,633
Harbin Electric, Inc. 2,500 41,625*
Samsung Electronics Co., Ltd. 458 287,271
Samsung Techwin Co., Ltd. 2,500 214,756
-----------
638,285
FINANCIAL SERVICES 1.66%
- --------------------------------------------------------------------------------------
BM&F BOVESPA S.A. 4,000 25,699
Bolsa de Valores de Colombia 3,000,000 56,028
Bolsa Mexicana de Valores S.A. 17,000 26,703
Bursa Malaysia Bhd 14,000 30,345
Hong Kong Exchanges & Clearing Ltd. 1,800 28,114
Singapore Exchange Ltd. 5,500 28,775
-----------
195,664
FOOD 3.01%
- --------------------------------------------------------------------------------------
China Mengniu Dairy Co. Ltd. 45,000 145,618
Compania Brasileira de Distribuicao Grupo Pao de Acucar,
Class A, Sponsored ADR 3,000 208,560
-----------
354,178
See notes to portfolios of investments and notes to financial statements.
119
GLOBAL EMERGING MARKETS FUND
PORTFOLIO OF INVESTMENTS (UNAUDITED) June 30, 2010
COMMON STOCKS SHARES VALUE
GOLD MINING 8.95%
- --------------------------------------------------------------------------------------
Centamin Egypt Ltd. 50,000 $ 121,648*
Eldorado Gold Corp. 15,000 269,400
Randgold Resources Ltd., Sponsored ADR 5,000 473,750
Zhaojin Mining Industry Co., Ltd., H shares 80,000 187,623
-----------
1,052,421
HEALTHCARE EQUIPMENT & SERVICES 2.00%
- --------------------------------------------------------------------------------------
Opto Circuits India Ltd. 46,048 234,833
HOTELS 1.33%
- --------------------------------------------------------------------------------------
Home Inns & Hotels Management, Inc., ADR 4,000 156,160*
INSURANCE 2.53%
- --------------------------------------------------------------------------------------
CNinsure, Inc., Sponsored ADR 3,500 90,790
Powszechny Zaklad Ubezpieczen S.A. 2,000 206,337
-----------
297,127
INTERNET 4.09%
- --------------------------------------------------------------------------------------
Baidu, Inc., Sponsored ADR 3,000 204,240*
NCSoft Corp. 600 98,813
NHN Corp. 900 133,799*
Perfect World Co., Ltd., Sponsored ADR 2,000 44,020*
-----------
480,872
INVESTMENT COMPANIES 0.52%
- --------------------------------------------------------------------------------------
Vostok Nafta Investment Ltd. 20,000 61,609*
MEDICAL - DRUGS 0.93%
- --------------------------------------------------------------------------------------
Pharmstandard, Sponsored GDR 5,000 109,073*
MULTIMEDIA 2.57%
- --------------------------------------------------------------------------------------
Naspers Ltd., Class N 9,000 302,485
OIL - FIELD SERVICES 1.64%
- --------------------------------------------------------------------------------------
Eurasia Drilling Co. Ltd., Sponsored GDR 10,000 192,423
OIL & GAS - INTEGRATED 3.29%
- --------------------------------------------------------------------------------------
PetroChina Co., Ltd., H shares, Sponsored ADR 900 98,757
TNK-BP Holding 140,000 288,140
-----------
386,897
See notes to portfolios of investments and notes to financial statements.
120
GLOBAL EMERGING MARKETS FUND
PORTFOLIO OF INVESTMENTS (UNAUDITED) June 30, 2010
COMMON STOCKS SHARES VALUE
OIL & GAS EXPLORATION & PRODUCTION 0.28%
- --------------------------------------------------------------------------------------
Alange Energy Corp. 100,000 $ 32,878*
PHARMACEUTICALS 1.29%
- --------------------------------------------------------------------------------------
China Shineway Pharmaceutical Group Ltd. 50,000 152,149
PIPELINES 1.91%
- --------------------------------------------------------------------------------------
China Gas Holdings Ltd. 400,000 224,428
PLATINUM 0.67%
- --------------------------------------------------------------------------------------
Eastern Platinum Ltd. 86,500 78,817*
REAL ESTATE 0.91%
- --------------------------------------------------------------------------------------
LSR Group OJSC, GDR 14,300 106,475*
RETAIL 4.47%
- --------------------------------------------------------------------------------------
Magnit OAO, Sponsored GDR 5,000 85,584
Wal-Mart de Mexico SAB de CV, Series V 123,800 274,180
X5 Retail Group N.V., Sponsored GDR 5,000 166,125*
-----------
525,889
RETAIL - HYPERMARKETS 0.67%
- --------------------------------------------------------------------------------------
Grupo Comercial Chedraui S.A. de CV 30,000 78,384*
SCHOOLS 0.55%
- --------------------------------------------------------------------------------------
New Oriental Education & Technology Group, Inc.,
Sponsored ADR 700 65,233*
SEMICONDUCTORS 0.37%
- --------------------------------------------------------------------------------------
Taiwan Semiconductor Manufacturing Co., Ltd. 23,230 43,245
STEEL - PRODUCERS 0.77%
- --------------------------------------------------------------------------------------
Mechel, Sponsored ADR 5,000 90,700
TRANSPORT - MARINE 0.75%
- --------------------------------------------------------------------------------------
China Shipping Development Co. Ltd., H shares 70,000 88,390
- --------------------------------------------------------------------------------------
TOTAL COMMON STOCKS 9,783,291
- --------------------------------------------------------------------------------------
(cost $9,603,757)
See notes to portfolios of investments and notes to financial statements.
121
GLOBAL EMERGING MARKETS FUND
PORTFOLIO OF INVESTMENTS (UNAUDITED) June 30, 2010
EXCHANGE-TRADED FUNDS (ETF) 6.30% SHARES VALUE
Emerging Global Shares Dow Jones Emerging Markets Energy
Titans Index ETF 600 $ 25,266
Emerging Global Shares Dow Jones Emerging Markets Metals
& Mining Titans ETF 500 25,750
Global X/InterBolsa FTSE Colombia 20 ETF 900 30,060
iShares FTSE/Xinhua A50 China Index ETF 20,000 29,303
iShares FTSE/Xinhua China 25 Index Fund 750 29,347
iShares MSCI All Peru Capped Index Fund 800 26,328
iShares MSCI Brazil Index Fund 400 24,784
iShares MSCI Chile Investable Market Index Fund 550 31,179
iShares MSCI Hong Kong Index Fund 1,800 26,586
iShares MSCI Malaysia Index Fund 2,400 27,456
iShares MSCI Mexico Investable Market Index Fund 540 25,861
iShares MSCI Singapore Index Fund 2,400 26,976
iShares MSCI South Africa Index Fund 500 26,325
iShares MSCI South Korea Index Fund 600 26,826
iShares MSCI Taiwan Index Fund 2,500 28,000*
Market Vectors Indonesia Index ETF 400 28,692
Market Vectors Vietnam ETF 1,100 27,434
PowerShares India Portfolio 1,400 31,346*
SPDR Gold Trust 2,000 243,360*
- --------------------------------------------------------------------------------------
TOTAL EXCHANGE-TRADED FUNDS 740,879
- --------------------------------------------------------------------------------------
(cost $752,431)
WARRANTS 0.00%
DIVERSIFIED METALS & MINING 0.00%
- --------------------------------------------------------------------------------------
Orsu Metals Corp., Warrants (March 2011) 25,813 121*
Orsu Metals Corp., Warrants (April 2012) 100,000 0*@
- --------------------------------------------------------------------------------------
TOTAL WARRANTS 121
- --------------------------------------------------------------------------------------
(cost $0)
See notes to portfolios of investments and notes to financial statements.
122
GLOBAL EMERGING MARKETS FUND
PORTFOLIO OF INVESTMENTS (UNAUDITED) June 30, 2010
PURCHASED OPTIONS 0.52% CONTRACTS VALUE
EXCHANGE-TRADED FUND 0.52%
- --------------------------------------------------------------------------------------
iShares MSCI Emerging Markets Index, Strike Price 37,
Put, Expiration July 2010 (premium $32,077) 200 $ 22,200
iShares MSCI Emerging Markets Index, Strike Price 39,
Put, Expiration Sep. 2010 (premium $15,100) 50 15,750
SPDR Gold Trust, Strike Price 110, Call, Expiration July
2010 (premium $22,250) 20 23,100
- --------------------------------------------------------------------------------------
TOTAL PURCHASED OPTIONS 61,050
- --------------------------------------------------------------------------------------
(cost $69,427)
- --------------------------------------------------------------------------------------
TOTAL SECURITIES 10,585,341
- --------------------------------------------------------------------------------------
(cost $10,425,615)
PRINCIPAL
REPURCHASE AGREEMENT 5.80% AMOUNT
Joint Tri-Party Repurchase Agreement, Banc of America
Securities LLC Merrill Lynch, 06/30/10, 0.01%, due
07/01/10, repurchase price $682,143, collateralized by
U.S. Treasury securities held in a joint
tri-party account (cost $682,143) $682,143 682,143
- --------------------------------------------------------------------------------------
TOTAL INVESTMENTS 95.81% 11,267,484
- --------------------------------------------------------------------------------------
(cost $11,107,758)
Other assets and liabilities, net 4.19% 493,262
-----------
NET ASSETS 100% $11,760,746
-----------
See notes to portfolios of investments and notes to financial statements.
123
CHINA REGION FUND
PORTFOLIO OF INVESTMENTS (UNAUDITED) June 30, 2010
COMMON STOCKS 75.88% SHARES VALUE
AGRICULTURAL CHEMICALS 0.21%
- ----------------------------------------------------------------------------------------
China Agritech, Inc. 10,000 $ 101,500*
AGRICULTURAL OPERATIONS 2.04%
- ----------------------------------------------------------------------------------------
Chaoda Modern Agriculture Holdings Ltd. 1,000,000 969,583
AIRLINES 1.33%
- ----------------------------------------------------------------------------------------
Air China Ltd., H shares 300,000 293,988*
China Eastern Airlines Corp. Ltd., H shares 800,000 338,386*
-----------
632,374
AUTO MANUFACTURERS 3.24%
- ----------------------------------------------------------------------------------------
Dongfeng Motor Group Co., Ltd., H shares 200,000 225,838
PT Astra International Tbk 250,000 1,316,719
-----------
1,542,557
AUTO PARTS & EQUIPMENT 0.37%
- ----------------------------------------------------------------------------------------
China Automotive Systems, Inc. 10,000 176,000*
BUILDING PRODUCTS 2.79%
- ----------------------------------------------------------------------------------------
PT Holcim Indonesia Tbk 4,000,000 947,426*
Semen Gresik Persero Tbk PT 400,000 382,753
-----------
1,330,179
CASINO HOTELS 1.24%
- ----------------------------------------------------------------------------------------
Wynn Macau Ltd. 360,000 588,945*
CHEMICALS - SPECIALTY 2.14%
- ----------------------------------------------------------------------------------------
Huabao International Holdings Ltd. 800,000 1,020,782
COAL 2.13%
- ----------------------------------------------------------------------------------------
China Shenhua Energy Co., Ltd., H shares 200,000 725,356
Yanzhou Coal Mining Co. Ltd., Sponsored ADR 15,000 287,250
-----------
1,012,606
COMMERCIAL BANKS - NON US 4.71%
- ----------------------------------------------------------------------------------------
Bank Mandiri Tbk PT 1,900,000 1,237,788
Bank of China Ltd., H shares 1,000,000 504,483
Industrial and Commercial Bank of China Ltd., H shares 690,000 501,885
-----------
2,244,156
See notes to portfolios of investments and notes to financial statements.
124
CHINA REGION FUND
PORTFOLIO OF INVESTMENTS (UNAUDITED) June 30, 2010
COMMON STOCKS SHARES VALUE
COMMERCIAL SERVICES 1.19%
- ----------------------------------------------------------------------------------------
SIA Engineering Co., Ltd. 200,000 $ 566,464
DIVERSIFIED MINERALS 0.19%
- ----------------------------------------------------------------------------------------
Erdene Resource Development Corp. 100,000 28,181*
Woulfe Mining Corp. 834,800 62,734*
-----------
90,915
DIVERSIFIED OPERATIONS 2.70%
- ----------------------------------------------------------------------------------------
China Resources Enterprise Ltd. 350,000 1,288,184
E-COMMERCE 2.37%
- ----------------------------------------------------------------------------------------
Ctrip.com International Ltd., Sponsored ADR 30,000 1,126,800
EDUCATION 0.62%
- ----------------------------------------------------------------------------------------
CIBT Education Group, Inc. 453,632 294,027*
ELECTRIC PRODUCTS - MISCELLANEOUS 0.83%
- ----------------------------------------------------------------------------------------
LG Innotek Co., Ltd. 3,000 394,420
ELECTRONICS & COMPONENTS 5.83%
- ----------------------------------------------------------------------------------------
Avago Technologies Ltd. 15,000 315,900*
Byd Co., Ltd., H shares 50,000 368,572
Harbin Electric, Inc. 10,000 166,500*
Samsung Techwin Co., Ltd. 15,000 1,288,535
Yageo Corp., Sponsored GDR 1 0*@
Zhuzhou CSR Times Electric Co., Ltd., H shares 300,000 634,859
-----------
2,774,366
FINANCIAL SERVICES 0.65%
- ----------------------------------------------------------------------------------------
Bursa Malaysia Bhd 50,000 108,376
Hong Kong Exchanges & Clearing Ltd. 6,500 101,520
Singapore Exchange Ltd. 19,500 102,021
-----------
311,917
FOOD & BEVERAGES 5.97%
- ----------------------------------------------------------------------------------------
China Mengniu Dairy Co., Ltd. 150,000 485,395
China Yurun Food Group Ltd. 350,000 1,095,614
PT Indofood Sukses Makmur Tbk 2,800,000 1,264,773
-----------
2,845,782
See notes to portfolios of investments and notes to financial statements.
125
CHINA REGION FUND
PORTFOLIO OF INVESTMENTS (UNAUDITED) June 30, 2010
COMMON STOCKS SHARES VALUE
FOOD - RETAIL 2.30%
- ----------------------------------------------------------------------------------------
Lianhua Supermarket Holdings Co., Ltd., H shares 300,000 $ 1,097,291
GOLD MINING 3.62%
- ----------------------------------------------------------------------------------------
Euromax Resources Ltd. 473,235 73,349*
Kingsgate Consolidated Ltd. 2,599 20,600
Lihir Gold Ltd., Sponsored ADR 8,000 287,920
Olympus Pacific Minerals, Inc. 590,500 169,182*
Zhaojin Mining Industry Co., Ltd., H shares 500,000 1,172,641
-----------
1,723,692
HOTELS 1.23%
- ----------------------------------------------------------------------------------------
Home Inns & Hotels Management, Inc., ADR 15,000 585,600*
HOUSEHOLD PRODUCTS 1.56%
- ----------------------------------------------------------------------------------------
PT Unilever Indonesia Tbk 400,000 743,724
INSURANCE 2.55%
- ----------------------------------------------------------------------------------------
China Life Insurance Co., Ltd., H shares 80,000 350,937
CNinsure, Inc., Sponsored ADR 15,000 389,100
PICC Property & Casualty Co. Ltd., H shares 500,000 473,847*
-----------
1,213,884
INTERNET 4.86%
- ----------------------------------------------------------------------------------------
Asia Broadband, Inc. 500,000 0*@
AsiaInfo Holdings, Inc. 15,000 327,900*
Baidu, Inc., Sponsored ADR 12,000 816,960*
NCSoft Corp. 2,500 411,720
NHN Corp. 4,000 594,663*
Perfect World Co., Ltd., Sponsored ADR 7,500 165,075*
-----------
2,316,318
MACHINERY 0.29%
- ----------------------------------------------------------------------------------------
China Valves Technology, Inc. 15,000 139,950*
MEDICAL PRODUCTS 1.10%
- ----------------------------------------------------------------------------------------
Shandong Weigao Group Medical Polymer Co. Ltd., H shares 120,000 522,783
METAL PROCESSING 0.09%
- ----------------------------------------------------------------------------------------
China Wind Systems, Inc. 10,000 45,000*
See notes to portfolios of investments and notes to financial statements.
126
CHINA REGION FUND
PORTFOLIO OF INVESTMENTS (UNAUDITED) June 30, 2010
COMMON STOCKS SHARES VALUE
NON-FERROUS METALS 0.04%
- ----------------------------------------------------------------------------------------
Sterling Group Ventures, Inc. 500,000 $ 17,750*
OIL & GAS - INTEGRATED 0.81%
- ----------------------------------------------------------------------------------------
PetroChina Co., Ltd., H shares, Sponsored ADR 3,500 384,055
OIL & GAS EXPLORATION & PRODUCTION 2.54%
- ----------------------------------------------------------------------------------------
CNOOC Ltd., Sponsored ADR 3,000 510,510
Green Dragon Gas Ltd. 11,099 69,226*
Kunlun Energy Company Ltd. 500,000 630,230
-----------
1,209,966
OIL FIELD SERVICES 0.74%
- ----------------------------------------------------------------------------------------
China Oilfield Services Ltd., H shares 300,000 350,800
PETROCHEMICALS 0.00%
- ----------------------------------------------------------------------------------------
Danhua Chemical Technology Co., Ltd., B shares 2 2*
PHARMACEUTICALS 2.04%
- ----------------------------------------------------------------------------------------
China Shineway Pharmaceutical Group Ltd. 320,000 973,751
PIPELINES 1.88%
- ----------------------------------------------------------------------------------------
China Gas Holdings Ltd. 1,600,000 897,711
POWER SUPPLY 1.29%
- ----------------------------------------------------------------------------------------
Dongfang Electric Corp. Ltd., H shares 200,000 613,965
PRECIOUS METALS 0.18%
- ----------------------------------------------------------------------------------------
TVI Pacific, Inc. 1,000,000 84,543*
PUBLISHING 0.02%
- ----------------------------------------------------------------------------------------
Lingo Media Corp. 22,642 10,528*
RETAIL 4.86%
- ----------------------------------------------------------------------------------------
361 Degrees International Ltd. 400,000 284,091
Belle International Holdings Ltd. 1,000,000 1,420,299
IT Ltd. 1,500,000 490,190
Lao Feng Xiang Co., Ltd., B shares 1 2
Little Sheep Group Ltd. 200,000 119,955
-----------
2,314,537
See notes to portfolios of investments and notes to financial statements.
127
CHINA REGION FUND
PORTFOLIO OF INVESTMENTS (UNAUDITED) June 30, 2010
COMMON STOCKS SHARES VALUE
SCHOOLS 0.49%
- ----------------------------------------------------------------------------------------
New Oriental Education & Technology Group, Inc.,
Sponsored ADR 2,500 $ 232,975*
SEMICONDUCTORS 0.53%
- ----------------------------------------------------------------------------------------
Samsung Electronics Co., Ltd. 400 250,891
SILVER MINING 0.93%
- ----------------------------------------------------------------------------------------
Silvercorp Metals, Inc. 67,500 443,850
STEEL - PRODUCERS 0.22%
- ----------------------------------------------------------------------------------------
China Gerui Advanced Materials Group Ltd. 20,000 103,600*
TRANSPORT - MARINE 0.80%
- ----------------------------------------------------------------------------------------
China Shipping Development Co., Ltd., H shares 300,000 378,814
VITAMINS & NUTRITION PRODUCTS 0.03%
- ----------------------------------------------------------------------------------------
Synutra International, Inc. 1,000 16,170*
WATER TREATMENT SYSTEMS 0.33%
- ----------------------------------------------------------------------------------------
Beijing Enterprises Water Group Ltd. 500,000 155,611*
- ----------------------------------------------------------------------------------------
TOTAL COMMON STOCKS 36,139,318
- ----------------------------------------------------------------------------------------
(cost $31,402,121)
REAL ESTATE INVESTMENT TRUST (REIT) 1.95%
Champion REIT 2,000,000 929,606
(cost $890,156)
EXCHANGE-TRADED FUNDS (ETF) 4.10%
iShares FTSE/Xinhua A50 China Index 70,000 102,560
iShares FTSE/Xinhua China 25 Index Fund 2,600 101,738
iShares MSCI Hong Kong Index Fund 6,700 98,959
iShares MSCI Malaysia Index Fund 9,000 102,960
iShares MSCI Singapore Index Fund 9,000 101,160
iShares MSCI South Korea Index Fund 2,200 98,362
iShares MSCI Taiwan Index Fund 9,000 100,800*
Market Vectors Indonesia Index ETF 1,500 107,595
Market Vectors Vietnam ETF 4,100 102,254
SPDR Gold Trust 8,500 1,034,119*
- ----------------------------------------------------------------------------------------
TOTAL EXCHANGE-TRADED FUNDS 1,950,507
- ----------------------------------------------------------------------------------------
(cost $1,882,993)
See notes to portfolios of investments and notes to financial statements.
128
CHINA REGION FUND
PORTFOLIO OF INVESTMENTS (UNAUDITED) June 30, 2010
PURCHASED OPTION 0.22% CONTRACTS VALUE
EXCHANGE-TRADED FUND 0.22%
- ----------------------------------------------------------------------------------------
SPDR Gold Trust, Strike Price 110, Call, Expiration July
2010 90 $ 103,950
(premium $100,125)
- ----------------------------------------------------------------------------------------
TOTAL SECURITIES 39,123,381
- ----------------------------------------------------------------------------------------
(cost $34,275,395)
PRINCIPAL
REPURCHASE AGREEMENT 12.49% AMOUNT
Joint Tri-Party Repurchase Agreement, Banc of America
Securities LLC Merrill Lynch, 06/30/10, 0.01%, due
07/01/10, repurchase price $5,950,027, collateralized
by U.S. Treasury securities held in a joint tri-party
account (cost $5,950,025) $5,950,025 5,950,025
- ----------------------------------------------------------------------------------------
TOTAL INVESTMENTS 94.64% 45,073,406
- ----------------------------------------------------------------------------------------
(cost $40,225,420)
Other assets and liabilities, net 5.36% 2,552,696
-----------
NET ASSETS 100% $47,626,102
-----------
See notes to portfolios of investments and notes to financial statements.
129
NOTES TO PORTFOLIOS OF INVESTMENTS (UNAUDITED) June 30, 2010
LEGEND
* Non-income producing security GO General Obligation Bond
+ Affiliated company (see following) RS Restricted Security (see following)
ADR American Depositary Receipt ZCB Zero Coupon Bond
GDR Global Depositary Receipt ^ Security or portion of security
segregated as collateral for written
options
@ Security was fair valued at June 30, 2010, by U.S. Global Investors, Inc. (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 June 30, 2010, were, 1.39% of Holmes Growth, 2.65% of
Global MegaTrends, 3.87% of Global Resources, 0.85% of World Precious Minerals,
0.62% of Gold and Precious Metals, 11.68% of Eastern European, and 1.84% of Global
Emerging Markets. See the Fair Valuation of Securities section of these Notes to
Portfolios of Investments for further discussion of fair valued securities. See
further information and detail on restricted securities in the Restricted
Securities section of these Notes to Portfolios of Investments.
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 June 30, 2010.
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 June 30, 2010, were:
Banc of America Securities LLC Merrill Lynch repurchase agreement,
06/30/10, 0.01%, due 07/01/10:
Total principal amount: $82,905,402; Total repurchase price: $82,905,425
Collateral:
$68,462,800 U.S. Treasury Note, 4.875%, 08/15/16
$5,938,553 U.S. Treasury Note 0.000%, 02/15/21
(total collateral market value, including accrued interest, of
$84,563,510)
Credit Suisse Securities USA LLC repurchase agreement, 06/30/10,
0.01%, due 07/01/10:
Total principal amount: $100,880,563; Total repurchase price: $100,880,591
Collateral:
$102,515,000 U.S. Treasury Note, 2.500%, 06/30/17
(total collateral market value, including accrued interest, of
$102,899,428)
UBS Financial Securities, Inc. repurchase agreement, 06/30/10,
0.02%, due 07/01/10:
Total principal amount: $47,763,182; Total repurchase price: $47,763,209
Collateral:
$23,000 U.S. Treasury Note, 0.625%, 06/30/12
$19,585,000 U.S. Treasury Note, 3.375%, 06/30/13
$18,572,000 U.S. Treasury Note, 3.375%, 07/31/13
$2,927,000 U.S. Treasury Note, 4.250%, 08/15/13
$3,931,300 U.S. Treasury Note, 2.750%, 10/31/13
$90,000 U.S. Treasury Note, 4.625%, 02/15/17
(total collateral market value, including accrued interest, of
$48,723,044)
130
NOTES TO PORTFOLIOS OF INVESTMENTS (UNAUDITED) June 30, 2010
FAIR VALUATION OF SECURITIES
For policies regarding the valuation of investments and other
significant accounting policies, please refer to the Notes to
Financial Statements.
The Funds are required to disclose information regarding the fair
value measurements of a Fund's assets and liabilities. Fair value is
the price that would be received to sell an asset or paid to
transfer a liability in an orderly transaction between market
participants at the measurement date. The disclosure requirement
established a three-tier hierarchy to maximize the use of observable
market data and minimize the use of unobservable inputs and to
establish classification of fair value measurements for disclosure
purposes. Inputs refer broadly to the assumptions that market
participants would use in pricing the asset or liability, including
assumptions about risk, for example, the risk inherent in a
particular valuation technique used to measure fair value including
such a pricing model and/or the risk inherent in the inputs to the
valuation technique. Inputs may be observable or unobservable.
Observable inputs are inputs that reflect the assumptions market
participants would use in pricing the asset or liability developed
based on market data obtained from sources independent of the
reporting entity. Unobservable inputs are inputs that reflect the
reporting entity's own assumptions about the assumptions market
participants would use in pricing the asset or liability developed
based on the best information available in the circumstances.
The inputs or methodology used for valuing securities are not an
indication of the risk associated with investing in those
securities. For example, money market securities are valued using
amortized cost, in accordance with the investment Company Act of
1940. Generally, amortized cost reflects the current fair value of a
security, but since the value is not obtained from a quoted price in
an active market, such securities are reflected as Level 2. Fair
value determinations are required for securities whose value is
affected by a significant event that will materially affect the
value of a domestic or foreign security and which occurs subsequent
to the time of the close of the principal market on which such
domestic or foreign security trades but prior to the calculation of
the Fund's NAV.
The three levels defined by the fair value hierarchy are as follows:
Level 1 - quoted prices in active markets for identical securities.
Level 2 - significant observable inputs (including quoted prices for
similar securities, interest rates, prepayment speeds, credit risk,
etc.)
Level 3 - significant unobservable inputs (including the Fund's own
assumptions in determining the fair value of investments).
In some instances, the inputs used to measure fair value might fall
in different levels of the fair value hierarchy. The level in the
fair value hierarchy within which the fair value measurement in its
entirety falls is determined based on the lowest input level that is
significant to the fair value measurement in its entirety. Because
of the inherent uncertainties of valuation, the values reflected in
the financial statements may materially differ from the value
received upon actual sale of those investments.
131
NOTES TO PORTFOLIOS OF INVESTMENTS (UNAUDITED) June 30, 2010
The following table summarizes the valuation of each Fund's
securities as of June 30, 2010, using the fair value hierarchy:
QUOTED PRICES
IN ACTIVE SIGNIFICANT
MARKETS FOR OTHER SIGNIFICANT
IDENTICAL OBSERVABLE UNOBSERVABLE
INVESTMENTS INPUTS INPUTS
(LEVEL 1) (LEVEL 2) (LEVEL 3) TOTAL
U.S. TREASURY SECURITIES CASH FUND
Investments in securities*
U.S. Government Obligations $ -- $ 59,996,665 $ -- $ 59,996,665
Repurchase Agreements 65,278,795 -- -- 65,278,795
------------ ------------ ----------- ------------
Total $ 65,278,795 $ 59,996,665 $ -- $125,275,460
============ ============ =========== ============
U.S. GOVERNMENT SECURITIES SAVINGS FUND
Investments in securities*
U.S. Government and Agency
Obligations $ -- $228,312,616 $ -- $228,312,616
------------ ------------ ----------- ------------
Total $ -- $228,312,616 $ -- $228,312,616
============ ============ =========== ============
NEAR-TERM TAX FREE FUND
Investments in securities*
Municipal Bonds $ -- $ 23,402,168 $ -- $ 23,402,168
Repurchase Agreement 2,548,208 -- -- 2,548,208
------------ ------------ ----------- ------------
Total $ 2,548,208 23,402,168 $ -- $ 25,950,376
============ ============ =========== ============
TAX FREE FUND
Investments in securities*
Municipal Bonds $ -- $ 20,575,809 $ -- $ 20,575,809
Repurchase Agreement 1,036,817 -- -- 1,036,817
------------ ------------ ----------- ------------
Total $ 1,036,817 $ 20,575,809 $ -- $ 21,612,626
============ ============ =========== ============
ALL AMERICAN EQUITY FUND
Investments in securities*
Common Stocks:
Transportation $ 160,920 $ 2,905 $ -- $ 163,825
All Other Common Stocks 12,083,018 -- -- 12,083,018
Real Estate Investment Trust 138,120 -- -- 138,120
Exchange-Traded Funds 483,480 -- -- 483,480
Purchased Options 148,125 -- -- 148,125
Repurchase Agreement 1,671,027 -- -- 1,671,027
------------ ------------ ----------- ------------
Total $ 14,684,690 $ 2,905 $ -- $ 14,687,595
============ ============ =========== ============
132
NOTES TO PORTFOLIOS OF INVESTMENTS (UNAUDITED) June 30, 2010
QUOTED PRICES
IN ACTIVE SIGNIFICANT
MARKETS FOR OTHER SIGNIFICANT
IDENTICAL OBSERVABLE UNOBSERVABLE
INVESTMENTS INPUTS INPUTS
(LEVEL 1) (LEVEL 2) (LEVEL 3) TOTAL
HOLMES GROWTH FUND
Investments in securities*
Common Stocks:
Financial Services $ 1,929,078 $ -- $ 77,498 $ 2,006,576
Medical - Hospitals -- 335,823 -- 335,823
All Other Common Stocks 24,407,370 -- -- 24,407,370
Exchange-Traded Fund 572,250 -- -- 572,250
Warrants:
Medical - Hospitals -- 18,672 -- 18,672
All Other Warrants 360,598 -- -- 360,598
Purchased Options 400,772 -- -- 400,772
Convertible Debenture:
Metal & Mineral Mining -- -- 380,000 380,000
Repurchase Agreement 3,935,510 -- -- 3,935,510
------------ ------------ ----------- ------------
Total $ 31,605,578 $ 354,495 $ 457,498 $ 32,417,571
============ ============ =========== ============
Other Financial Instruments**
Written Options $ 4,799 $ -- $ -- $ 4,799
GLOBAL MEGATRENDS FUND
Investments in securities*
Common Stocks:
Airlines $ -- $ 169,193 $ -- $ 169,193
Airport Development/Maintenance -- 264,636 -- 264,636
Auto Manufacturers -- 403,726 -- 403,726
Building & Construction -- 248,385 -- 248,385
Building Products -- 392,594 -- 392,594
Electric - Integrated 1,636,185 307,906 -- 1,944,091
Electronics & Components -- 622,001 -- 622,001
Pipelines -- 448,855 -- 448,855
Power Converters/Power Supply
Equipment -- 399,563 -- 399,563
Public Thoroughfares -- 911,149 -- 911,149
Real Estate -- 363,311 -- 363,311
Steel - Producers 181,400 460,954 -- 642,354
Transport - Marine -- 176,780 -- 176,780
Transportation 790,330 269,234 -- 1,059,564
Water Treatment Systems -- 940,394 -- 940,394
All Other Common Stocks 5,862,889 -- -- 5,862,889
Warrants 11,742 -- -- 11,742
Purchased Options 111,000 -- -- 111,000
Master Limited Partnerships 788,925 -- -- 788,925
Convertible Debenture:
Metal & Mineral Mining -- -- 520,000 520,000
Repurchase Agreement 1,951,062 -- -- 1,951,062
------------ ------------ ----------- ------------
Total $ 11,333,533 $ 6,378,681 $ 520,000 $ 18,232,214
============ ============ =========== ============
133
NOTES TO PORTFOLIOS OF INVESTMENTS (UNAUDITED) June 30, 2010
QUOTED PRICES
IN ACTIVE SIGNIFICANT
MARKETS FOR OTHER SIGNIFICANT
IDENTICAL OBSERVABLE UNOBSERVABLE
INVESTMENTS INPUTS INPUTS
(LEVEL 1) (LEVEL 2) (LEVEL 3) TOTAL
GLOBAL RESOURCES FUND
Investments in securities*
Common Stocks:
Agricultural Operations $ -- $ 2,020,878 $ -- $ 2,020,878
Coal 3,727,096 -- 231,343 3,958,439
General Metal & Mineral Mining 7,677,075 8,716,196 -- 16,393,271
Oil & Gas Exploration &
Production 212,995,948 1,207,705 10,001,196 224,204,849
Oil & Gas Refining and
Marketing -- -- 397,591 397,591
Medical - Hospitals -- 801,275 -- 801,275
Natural Resource Technology -- -- 7,500 7,500
Platinum 3,225,306 -- 19,821 3,245,127
Uranium 1,765,225 -- 2,062,500 3,827,725
All Other Common Stocks 221,015,009 -- -- 221,015,009
Exchange-Traded Fund 8,517,600 -- -- 8,517,600
Warrants:
Medical - Hospitals -- 43,412 -- 43,412
Oil & Gas Exploration &
Production 976,939 6,116,279 -- 7,093,218
All Other Warrants 23,059,472 -- -- 23,059,472
Purchased Options 3,475,454 -- -- 3,475,454
Convertible Debenture:
Metal & Mineral Mining -- -- 4,900,000 4,900,000
Repurchase Agreement 66,666,988 -- -- 66,666,988
------------ ------------ ----------- ------------
Total $553,102,112 $ 18,905,745 $17,619,951 $589,627,808
============ ============ =========== ============
Other Financial Instruments**
Written Options $ 445,799 $ -- $ -- $ 445,799
134
NOTES TO PORTFOLIOS OF INVESTMENTS (UNAUDITED) June 30, 2010
QUOTED PRICES
IN ACTIVE SIGNIFICANT
MARKETS FOR OTHER SIGNIFICANT
IDENTICAL OBSERVABLE UNOBSERVABLE
INVESTMENTS INPUTS INPUTS
(LEVEL 1) (LEVEL 2) (LEVEL 3) TOTAL
WORLD PRECIOUS MINERALS FUND
Investments in securities*
Common Stocks:
Agricultural Operations $ -- $ 1,250,845 $ -- $ 1,250,845
Diamond Mining & Exploration 2,319,095 4,265,989 -- 6,585,084
Gold/Mineral Exploration &
Development 159,684,931 17,696,394 747,827 178,129,152
Intermediate & Junior Gold
Producers 91,752,612 5,525,506 2,888,545 100,166,663
Medical - Hospitals -- 1,507,511 -- 1,507,511
Metal & Mineral Mining &
Exploration 11,542,692 5,499,069 -- 17,041,761
Platinum 24,718,348 -- 178,389 24,896,737
Silver Mining 18,434,606 2,780,937 -- 21,215,543
All Other Common Stocks 154,191,872 -- -- 154,191,872
Exchange-Traded Funds 21,508,890 -- -- 21,508,890
Warrants:
Gold/Mineral Exploration &
Development 1,235,748 169,320 223,143 1,628,211
Intermediate & Junior Gold
Producers 5,313,818 130,290 -- 5,444,108
Medical - Hospitals -- 79,356 -- 79,356
Metal & Mineral Mining &
Exploration -- -- -- --
Silver Mining 12,193,957 857,480 -- 13,051,437
All Other Warrants 33,455,590 -- -- 33,455,590
Special Warrants -- -- -- --
Right 94,874 -- -- 94,874
Purchased Options 180,772 -- -- 180,772
Repurchase Agreement 39,471,105 -- -- 39,471,105
------------ ------------ ----------- ------------
Total $576,098,910 $ 39,762,697 $ 4,037,904 $619,899,511
============ ============ =========== ============
GOLD AND PRECIOUS METALS FUND
Investments in securities*
Common Stocks:
Diamond Mining & Exploration $ -- $ 1,066,497 $ -- $ 1,066,497
Gold Mining 145,006,662 4,416,274 962,848 150,385,784
Medical - Hospitals -- 641,423 -- 641,423
Silver Mining -- 1,787,745 -- 1,787,745
All Other Common Stocks 25,569,347 -- -- 25,569,347
Exchange-Traded Funds 12,241,960 -- -- 12,241,960
Warrants:
Gold Mining 15,008,822 -- -- 15,008,822
Medical - Hospitals -- 34,076 -- 34,076
Silver Mining 6,790,477 461,720 -- 7,252,197
All Other Warrants 1,177,249 -- -- 1,177,249
Repurchase Agreement 14,594,286 -- -- 14,594,286
------------ ------------ ----------- ------------
Total $220,388,803 $ 8,407,735 $ 962,848 $229,759,386
============ ============ =========== ============
Other Financial Instruments**
Written Options $ 9,950 $ -- $ -- $ 9,950
135
NOTES TO PORTFOLIOS OF INVESTMENTS (UNAUDITED) June 30, 2010
QUOTED PRICES
IN ACTIVE SIGNIFICANT
MARKETS FOR OTHER SIGNIFICANT
IDENTICAL OBSERVABLE UNOBSERVABLE
INVESTMENTS INPUTS INPUTS
(LEVEL 1) (LEVEL 2) (LEVEL 3) TOTAL
EASTERN EUROPEAN FUND
Investments in securities*
Common Stocks:
Airport Development $ -- $ 1,764,240 $ -- $ 1,764,240
Appliances -- 6,269,094 -- 6,269,094
Auto Manufacturers -- 7,065,197 -- 7,065,197
Building Products -- 2,414,614 -- 2,414,614
Commercial Banks - Non US 2,170,000 98,736,562 -- 100,906,562
Diversified Metals & Mining 887,279 4,291,392 -- 5,178,671
Diversified Operations -- 4,007,769 -- 4,007,769
Electric - Integrated -- 6,004,163 -- 6,004,163
Electric Utility -- 3,550,906 -- 3,550,906
Food - Meat Products -- 2,139,790 -- 2,139,790
Investment Companies -- 400,461 -- 400,461
Medical - Drugs -- 10,081,013 -- 10,081,013
Metal Processing & Fabrication -- 1,074,225 -- 1,074,225
Oil - Field Services -- 2,597,715 -- 2,597,715
Oil & Gas - Integrated 11,171,278 37,588,448 -- 48,759,726
Oil & Gas Exploration &
Production 868,911 21,296,766 -- 22,165,677
Real Estate -- 5,928,423 -- 5,928,423
Retail -- 19,001,092 -- 19,001,092
Retail - Food -- 2,762,923 -- 2,762,923
Silver Mining -- 4,655,587 -- 4,655,587
Steel - Producers 10,884,000 21,447,594 -- 32,331,594
Telecommunications 5,678,280 10,131,944 -- 15,810,224
Transportation -- 3,769,281 -- 3,769,281
All Other Common Stocks 17,352,754 -- -- 17,352,754
Preferred Stocks:
Oil & Gas Exploration &
Production -- 2,411,538 -- 2,411,538
Steel - Producers 1,039,500 -- -- 1,039,500
Warrants 1,052,088 -- -- 1,052,088
Purchased Options 2,325,000 -- -- 2,325,000
Repurchase Agreement 27,763,182 -- -- 27,763,182
------------ ------------ ----------- ------------
Total $ 81,192,272 $279,390,737 $ -- $360,583,009
============ ============ =========== ============
136
NOTES TO PORTFOLIOS OF INVESTMENTS (UNAUDITED) June 30, 2010
QUOTED PRICES
IN ACTIVE SIGNIFICANT
MARKETS FOR OTHER SIGNIFICANT
IDENTICAL OBSERVABLE UNOBSERVABLE
INVESTMENTS INPUTS INPUTS
(LEVEL 1) (LEVEL 2) (LEVEL 3) TOTAL
GLOBAL EMERGING MARKETS FUND
Investments in securities*
Common Stocks:
Airlines $ -- $ 84,597 $ -- $ 84,597
Airport Development -- 70,570 -- 70,570
Auto Manufacturers -- 100,931 -- 100,931
Building & Construction -- 153,490 -- 153,490
Building Products -- 176,175 -- 176,175
Cellular Telecommunications 481,220 104,272 -- 585,492
Commercial Banks - Non US 246,560 962,859 -- 1,209,419
Department Stores -- 373,681 -- 373,681
Electric - Integrated -- 153,953 -- 153,953
Electric Products -
Miscellaneous -- 92,031 -- 92,031
Electronics & Components 41,625 596,660 -- 638,285
Financial Services 56,028 139,636 -- 195,664
Food 208,560 145,618 -- 354,178
Gold Mining 864,798 187,623 -- 1,052,421
Healthcare Equipment & Services -- 234,833 -- 234,833
Insurance 90,790 206,337 -- 297,127
Internet 248,260 232,612 -- 480,872
Investment Companies -- 61,609 -- 61,609
Medical - Drugs -- 109,073 -- 109,073
Multimedia -- 302,485 -- 302,485
Oil - Field Services -- 192,423 -- 192,423
Oil & Gas - Integrated 98,757 288,140 -- 386,897
Pharmaceuticals -- 152,149 -- 152,149
Pipelines -- 224,428 -- 224,428
Real Estate -- 106,475 -- 106,475
Retail -- 525,889 -- 525,889
Semiconductors -- 43,245 -- 43,245
Transport - Marine -- 88,390 -- 88,390
All Other Common Stocks 1,336,509 -- -- 1,336,509
Exchange-Traded Funds 711,576 29,303 -- 740,879
Warrants 121 -- -- 121
Purchased Options 61,050 -- -- 61,050
Repurchase Agreement 682,143 -- -- 682,143
------------ ------------ ----------- ------------
Total $ 5,127,997 $ 6,139,487 $ -- $ 11,267,484
============ ============ =========== ============
137
NOTES TO PORTFOLIOS OF INVESTMENTS (UNAUDITED) June 30, 2010
QUOTED PRICES
IN ACTIVE SIGNIFICANT
MARKETS FOR OTHER SIGNIFICANT
IDENTICAL OBSERVABLE UNOBSERVABLE
INVESTMENTS INPUTS INPUTS
(LEVEL 1) (LEVEL 2) (LEVEL 3) TOTAL
CHINA REGION FUND
Investments in securities*
Common Stocks:
Agricultural Operations $ -- $ 969,583 $ -- $ 969,583
Airlines -- 632,374 -- 632,374
Auto Manufacturers -- 1,542,557 -- 1,542,557
Building Products -- 1,330,179 -- ,330,179
Casino Hotels -- 588,945 -- 588,945
Chemicals - Specialty -- 1,020,782 -- 1,020,782
Coal 287,250 725,356 -- 1,012,606
Commercial Banks - Non US -- 2,244,156 -- 2,244,156
Commercial Services -- 566,464 -- 566,464
Diversified Operations -- 1,288,184 -- 1,288,184
Electric Products -
Miscellaneous -- 394,420 -- 394,420
Electronics & Components 482,400 2,291,966 -- 2,774,366
Financial Services -- 311,917 -- 311,917
Food & Beverages -- 2,845,782 -- 2,845,782
Food-Retail -- 1,097,291 -- 1,097,291
Gold Mining 530,451 1,193,241 -- 1,723,692
Household Products -- 743,724 -- 743,724
Insurance 389,100 824,784 -- 1,213,884
Internet 1,309,935 1,006,383 -- 2,316,318
Medical Products -- 522,783 -- 522,783
Oil & Gas Exploration &
Production 510,510 699,456 -- 1,209,966
Oil Field Services -- 350,800 -- 350,800
Petrochemicals -- 2 -- 2
Pharmaceuticals -- 973,751 -- 973,751
Pipelines -- 897,711 -- 897,711
Power Supply -- 613,965 -- 613,965
Retail -- 2,314,537 -- 2,314,537
Semiconductors -- 250,891 -- 250,891
Transport - Marine -- 378,814 -- 378,814
Water Treatment Systems -- 155,611 -- 155,611
All Other Common Stocks 3,853,263 -- -- 3,853,263
Real Estate Investment Trust -- 929,606 -- 929,606
Exchange-Traded Funds 1,665,588 284,919 -- 1,950,507
Purchased Option 103,950 -- -- 103,950
Repurchase Agreement 5,950,025 -- -- 5,950,025
------------ ------------ ----------- ------------
Total $ 15,082,472 $ 29,990,934 $ -- $ 45,073,406
============ ============ =========== ============
For the six months ended June 30, 2010, the funds did not have any
significant transfers between Level 1 and Level 2.
<FN>
* Refer to the portfolio of investments for a detailed list of the
fund's investments.
** Other financial instruments include currency contracts and
written options. Currency contracts and written options are
reported at their unrealized appreciation/depreciation at
measurement date, which represents the change in the contract's
value from trade date.
</FN>
138
NOTES TO PORTFOLIOS OF INVESTMENTS (UNAUDITED) June 30, 2010
The following is a reconciliation of assets for which significant
unobservable inputs (Level 3) were used in determining fair value
during the period January 1, 2010, through June 30, 2010:
CHANGE IN
UNREALIZED
APPRECIATION
(DEPRECIATION)
CHANGE IN TRANSFERS FROM
BEGINNING TOTAL UNREALIZED NET IN AND/OR ENDING INVESTMENTS
BALANCE REALIZED APPRECIATION PURCHASES OUT OF BALANCE HELD AS OF
12/31/09 GAIN (LOSS) (DEPRECIATION) (SALES) LEVEL 3 06/30/10 06/30/10
----------------------------------------------------------------------------------------------------------------------------
HOLMES GROWTH FUND
Investments in
Securities
Common Stock:
Financial Services $ 78,523 $ -- $ (1,025) $ -- $ -- $ 77,498 $ (1,025)
Convertible Debenture:
Metal & Mineral
Mining -- -- -- 380,000 -- 380,000 --
----------------------------------------------------------------------------------------------------------------------------
Total Investments in
Securities $ 78,523 $ -- $ (1,025) $ 380,000 $ -- $ 457,498 $ (1,025)
----------------------------------------------------------------------------------------------------------------------------
GLOBAL MEGATRENDS FUND
Investments in
Securities
Convertible Debenture:
Metal & Mineral
Mining $ -- $ -- $ -- $ 520,000 $ -- $ 520,000 $ --
----------------------------------------------------------------------------------------------------------------------------
Total Investments in
Securities $ -- $ -- $ -- $ 520,000 $ -- $ 520,000 $ --
----------------------------------------------------------------------------------------------------------------------------
GLOBAL RESOURCES FUND
Investments in
Securities
Common Stock:
Coal $ 247,019 $ -- $ (15,676) $ -- $ -- $ 231,343 $ (15,676)
Gold & Silver
Mining -- -- -- -- -- -- --
Natural Resource
Technology -- -- -- -- 7,500 7,500 --
Oil & Gas
Exploration &
Production -- -- -- -- 10,001,196 10,001,196 --
Oil & Gas Refining
and Marketing 537,136 -- (139,545) -- -- 397,591 (139,545)
Platinum 20,966 -- (1,145) -- -- 19,821 (1,145)
Sugar/Ethanol -- -- -- -- -- -- --
Uranium 525,000 -- 1,545,000 -- (7,500) 2,062,500 1,545,000
Warrants:
Coal -- -- -- -- -- -- --
General Metal &
Mineral Mining -- -- -- -- -- -- --
Oil & Gas
Exploration &
Production -- -- -- -- -- -- --
Units:
General Metal &
Mineral Mining 809,023 -- (91,740) -- (717,283) -- --
Oil & Gas
Exploration &
Production 10,001,196 -- -- -- (10,001,196) -- --
Convertible Debenture:
Metal & Mineral
Mining -- -- -- 4,900,000 -- 4,900,000 --
----------------------------------------------------------------------------------------------------------------------------
Total Investments in
Securities $12,140,340 $ -- $1,296,894 $ 4,900,000 $ (717,283) $17,619,951 $1,388,634
----------------------------------------------------------------------------------------------------------------------------
139
NOTES TO PORTFOLIOS OF INVESTMENTS (UNAUDITED) June 30, 2010
CHANGE IN
UNREALIZED
APPRECIATION
(DEPRECIATION)
CHANGE IN TRANSFERS FROM
BEGINNING TOTAL UNREALIZED NET IN AND/OR ENDING INVESTMENTS
BALANCE REALIZED APPRECIATION PURCHASES OUT OF BALANCE HELD AS OF
12/31/09 GAIN (LOSS) (DEPRECIATION) (SALES) LEVEL 3* 06/30/10 06/30/10
----------------------------------------------------------------------------------------------------------------------------
WORLD PRECIOUS MINERALS FUND
Investments in
Securities
Common Stock:
Diamond Mining &
Exploration $ -- $ -- $ -- $ -- $ -- $ -- $ --
Gold/Mineral
Exploration &
Development 3,124,059 -- (510,014) -- (1,866,218) 747,827 (61,278)
Intermediate &
Junior Gold
Producers -- -- -- 2,888,545 -- 2,888,545 --
Platinum 188,690 -- (10,301) -- -- 178,389 (10,301)
Warrants:
Gold/Mineral
Exploration &
Development 241,427 -- (18,284) -- -- 223,143 (18,284)
Intermediate &
Junior Gold
Producers -- -- -- -- -- -- --
Special Warrants:
Gold/Mineral
Exploration &
Development -- -- -- -- -- -- --
Notes:
Intermediate &
Junior Gold
Producers 1,027,682 (333,913) 445,070 (1,138,839) -- -- --
Units:
Gold/Mineral
Exploration &
Development 1,855,994 -- (16,805) -- (1,839,189) -- --
----------------------------------------------------------------------------------------------------------------------------
Total Investments in
Securities $ 6,437,852 $(333,913) $ (110,334) $ 1,749,706 $(3,705,407) $ 4,037,904 $ (89,863)
----------------------------------------------------------------------------------------------------------------------------
GOLD AND PRECIOUS METALS
Investments in
Securities
Common Stocks:
Gold Mining $ -- $ -- $ -- $ 962,848 $ -- $ 962,848 $ --
Notes:
Gold Mining 285,467 (92,754) 123,631 (316,344) -- -- --
----------------------------------------------------------------------------------------------------------------------------
Total Investments in
Securities $ 285,467 $ (92,754) $ 123,631 $ (646,504) $ -- $ 962,848 $ --
----------------------------------------------------------------------------------------------------------------------------
<FN>
* The Funds' policy is to recognize transfers in and transfers out as of the end of the reporting period.
</FN>
140
NOTES TO PORTFOLIOS OF INVESTMENTS (UNAUDITED) June 30, 2010
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 June 30, 2010.
SHARES OF AFFILIATED COMPANIES
HOLMES GROWTH FUND DECEMBER 31, 2009 ADDITIONS REDUCTIONS JUNE 30, 2010
- -------------------------------------------------------------------------------------------------
MCO Capital, Inc. 1,000,000 -- -- 1,000,000
At June 30, 2010, the value of investments in affiliated companies
was $77,498, representing 0.23% of net assets, and the total cost
was $78,441. There were no realized gains or losses on transactions.
There was no income earned for the period.
SHARES OF AFFILIATED COMPANIES
GLOBAL RESOURCES FUND DECEMBER 31, 2009 ADDITIONS REDUCTIONS JUNE 30, 2010
- -------------------------------------------------------------------------------------------------
Agriterra Ltd. 46,380,108 15,256 -- 46,395,364
Natasa Mining Ltd. 1,099,160 -- (60,810) 1,038,350(a)
NiMin Energy Corp. 2,631,580 -- (731,580) 1,900,000(a)
Range Energy Resources, Inc.
(formerly Range Metals, Inc.) 15,000,000 -- -- 15,000,000
At June 30, 2010, the value of investments in affiliated companies
was $4,557,161, representing 0.73% of net assets, and the total cost
was $10,431,063. Net realized losses on transactions were $543,497,
and there was no income earned for the period.
SHARES OF AFFILIATED COMPANIES
WORLD PRECIOUS MINERALS FUND DECEMBER 31, 2009 ADDITIONS REDUCTIONS JUNE 30, 2010
- ------------------------------------------------------------------------------------------------
Agriterra Ltd. 28,207,200 509,744 -- 28,716,944
Aldridge Minerals, Inc. 1,145,100 154,900 -- 1,300,000(a)
Candente Gold Corp. 4,875,000 435,000 -- 5,310,000
Carnavale Resources Ltd. 3,500,000 -- -- 3,500,000(a)
Chesapeake Gold Corp. 2,042,219 7,781 (442,900) 1,607,100(a)
Gran Colombia Gold, S.A. -- 12,300,000 -- 12,300,000
Hainan Mining Corp. plc 2,018,700 -- -- 2,018,700
Klondex Mines Ltd. 2,575,000 25,000 -- 2,600,000
Medoro Resources Ltd. 10,687,557 11,600,000 -- 22,287,557
Moss Lake Gold Mines Ltd. 3,182,000 -- -- 3,182,000
Rochester Resources Ltd. 7,130,000 600,000 -- 7,730,000
Romarco Minerals, Inc. 16,845,706 4,270,000 (420,000) 20,695,706(a)
Rye Patch Gold Corp. 3,800,000 -- -- 3,800,000(a)
At June 30, 2010, the value of investments in affiliated companies
was $28,212,871, representing 4.54% of net assets, and the total
cost was $24,955,019. Net realized gains on transactions were
$3,179,948, and there was no income earned for the period.
(a) At June 30, 2010, the company is no longer defined as an
affiliate, although it was an affiliated company during the
year.
141
NOTES TO PORTFOLIOS OF INVESTMENTS (UNAUDITED) June 30, 2010
RESTRICTED SECURITIES - INDICATED IN PORTFOLIO OF INVESTMENTS AS "RS"
The following securities are subject to contractual and regulatory
restrictions on resale or transfer. These investments may involve a
high degree of business and financial risk. Because of the thinly
traded markets for these investments, a Fund may be unable to
liquidate its securities in a timely manner, especially if there is
negative news regarding the specific securities or the markets
overall. These securities could decline significantly in value
before the Fund could liquidate these securities. The issuer bears
the cost of registration, if any, involved in the disposition of
these securities.
ACQUISITION COST PER
HOLMES GROWTH FUND DATE SHARE/UNIT
- ----------------------------------------------------------------------------------------
Grupo Empresarial Ibiza S.A., Convertible
Debenture 04/19/10 $100.00
MCO Capital, Inc. 12/04/09 $0.08
As of June 30, 2010, the total cost of restricted securities was
$458,441 and the total value was $457,498, representing 1.34% of net
assets.
ACQUISITION COST PER
GLOBAL MEGATRENDS FUND DATE SHARE/UNIT
- ----------------------------------------------------------------------------------------
Grupo Empresarial Ibiza S.A., Convertible
Debenture 04/19/10 $100.00
As of June 30, 2010, the total cost of restricted securities was
$520,000 and the total value was $520,000, representing 2.65% of net
assets.
ACQUISITION COST PER
GLOBAL RESOURCES FUND DATE SHARE/UNIT
- ----------------------------------------------------------------------------------------
GoviEX Uranium, Inc. 10/04/07 $1.96
Grupo Empresarial Ibiza S.A., Convertible
Debenture 04/19/10 $100.00
HRT Participacoes Em Petroleo 10/28/09 $1,412.00
HRT Participacoes Em Petroleo, Warrants (November
2013) 10/28/09 $0.00
I-Pulse, Inc. (formerly GoviEx IP Holdings, Inc.) 10/04/07 $1.88
I-Pulse, Inc., Warrants (December 2010) 10/04/07 $0.00
Ivanhoe Nickel and Platinum Ltd. 07/09/03 $5.00
Lithium Americas Corp. 12/22/09 $1.42
Osmium Holdings S.A. 10/22/96-01/29/98 $987.07
Value Creation, Inc. 08/11/06 $10.60
As of June 30, 2010, the total cost of restricted securities was
$20,754,342 and the total value was $17,919,583, representing 2.85%
of net assets.
ACQUISITION COST PER
WORLD PRECIOUS MINERALS FUND DATE SHARE/UNIT
- ----------------------------------------------------------------------------------------
Elissa Resources Ltd. 04/19/10 $0.00
Gran Colombia Gold, S.A. 04/20/10 $0.25
Hainan Mining Corp. plc 08/31/06-05/16/07 $0.85
Hainan Mining Corp. plc, Warrants (May 2011) 05/16/07 $0.00
Hainan Mining Corp. plc, Warrants (August 2011) 08/31/06 $0.00
Ivanhoe Nickel and Platinum Ltd. 07/09/03 $5.00
Miocene Metals Ltd., Special Warrants (October
2011) 04/28/10 $0.00
Osmium Holdings S.A. 10/22/96-01/29/98 $1,280.75
Q2 Gold Resources, Inc. 06/18/07 $0.00
Western Exploration & Development Ltd., 144A,
Special
Warrants (December 2049) 08/14/97 $0.50
142
NOTES TO PORTFOLIOS OF INVESTMENTS (UNAUDITED) June 30, 2010
As of June 30, 2010, the total cost of restricted securities was
$6,915,129 and the total value was $4,037,904, representing 0.65% of
net assets.
ACQUISITION COST PER
GOLD AND PRECIOUS METALS FUND DATE SHARE/UNIT
- ----------------------------------------------------------------------------------------
Gran Colombia Gold, S.A. 04/20/10 $0.25
As of June 30, 2010, the total cost of restricted securities was
$1,026,643, and the total value was $962,848, representing 0.41% of
net assets.
143
STATEMENTS OF ASSETS AND LIABILITIES (UNAUDITED)
U.S. TREASURY
SECURITIES
CASH FUND
Investments, at identified cost $125,275,460
============
ASSETS
- ---------------------------------------------------------------------------
Investments, at value:
Securities $ 59,996,665
Repurchase agreements 65,278,795
Cash 154
Receivables:
Investments sold --
Interest 24
Capital shares sold 334,975
From adviser 17,904
Other assets 14,527
- ---------------------------------------------------------------------------
TOTAL ASSETS 125,643,044
- ---------------------------------------------------------------------------
LIABILITIES
- ---------------------------------------------------------------------------
Payables:
Investments purchased 19,997,511
Capital shares redeemed 354,218
Dividends and distributions 6
Accounts payable and accrued expenses 18,581
Due to custodian --
- ---------------------------------------------------------------------------
TOTAL LIABILITIES 20,370,316
- ---------------------------------------------------------------------------
NET ASSETS $105,272,728
============
NET ASSETS CONSIST OF:
- ---------------------------------------------------------------------------
Paid-in capital $105,271,803
Accumulated undistributed net investment income 1,210
Accumulated net realized gain (loss) on investments (285)
Net unrealized appreciation of investments --
------------
Net assets applicable to capital shares outstanding $105,272,728
============
BY SHARE CLASS
NET ASSETS
- ---------------------------------------------------------------------------
Investor class $105,272,728
CAPITAL SHARES OUTSTANDING, AN UNLIMITED NUMBER OF NO PAR
SHARES AUTHORIZED
- ---------------------------------------------------------------------------
Investor class 105,347,600
NET ASSET VALUE, PUBLIC OFFERING PRICE, REDEMPTION PRICE,
PER SHARE
- ---------------------------------------------------------------------------
Investor class $ 1.00
See accompanying notes to financial statements.
144
June 30, 2010
U.S. GOVERNMENT
SECURITIES NEAR-TERM TAX FREE
SAVINGS FUND TAX FREE FUND FUND
Investments, at identified cost $228,312,616 $25,167,197 $20,922,593
============ =========== ===========
ASSETS
- ------------------------------------------------------------------------------------------------------------------
Investments, at value:
Securities $228,312,616 $23,402,168 $20,575,809
Repurchase agreements -- 2,548,208 1,036,817
Cash 554 -- 154
Receivables:
Investments sold -- 25,000 106,458
Interest 125,035 301,335 272,560
Capital shares sold 227,704 165,221 178,992
From adviser 9,601 3,674 220
Other assets 24,795 2,182 2,659
- ------------------------------------------------------------------------------------------------------------------
TOTAL ASSETS 228,700,305 26,447,788 22,173,669
- ------------------------------------------------------------------------------------------------------------------
LIABILITIES
- ------------------------------------------------------------------------------------------------------------------
Payables:
Investments purchased -- -- --
Capital shares redeemed 424,234 3,831 1,292
Dividends and distributions 16 7,991 12,614
Accounts payable and accrued expenses 33,808 24,446 23,910
Due to custodian -- 346 --
- ------------------------------------------------------------------------------------------------------------------
TOTAL LIABILITIES 458,058 36,614 37,816
- ------------------------------------------------------------------------------------------------------------------
NET ASSETS $228,242,247 $26,411,174 $22,135,853
============ =========== ===========
NET ASSETS CONSIST OF:
- ------------------------------------------------------------------------------------------------------------------
Paid-in capital $227,979,943 $25,895,799 $21,916,587
Accumulated undistributed net investment income 261,366 21,345 36,979
Accumulated net realized gain (loss) on investments 938 (289,149) (507,746)
Net unrealized appreciation of investments -- 783,179 690,033
------------ ----------- -----------
Net assets applicable to capital shares outstanding $228,242,247 $26,411,174 $22,135,853
============ =========== ===========
BY SHARE CLASS
NET ASSETS
- ------------------------------------------------------------------------------------------------------------------
Investor class $228,242,247 $26,411,174 $22,135,853
CAPITAL SHARES OUTSTANDING, AN UNLIMITED NUMBER OF NO PAR
SHARES AUTHORIZED
- ------------------------------------------------------------------------------------------------------------------
Investor class 228,408,919 11,830,040 1,795,559
NET ASSET VALUE, PUBLIC OFFERING PRICE, REDEMPTION PRICE,
PER SHARE
- ------------------------------------------------------------------------------------------------------------------
Investor class $ 1.00 $ 2.23 $ 12.33
145
STATEMENTS OF ASSETS AND LIABILITIES (UNAUDITED)
ALL AMERICAN HOLMES GROWTH
EQUITY FUND FUND
Investments, at identified cost $14,461,897 $29,654,552
=========== ===========
ASSETS
- --------------------------------------------------------------------------------
Investments, at value:
Securities of unaffiliated issuers $13,016,568 $28,404,563
Securities of affiliated issuers -- 77,498
Repurchase agreements 1,671,027 3,935,510
Cash 154 154
Foreign currencies (Cost $0, $808, $0, $90,413
and $108,052) -- 796
Receivables:
Investments sold 521,361 1,898,370
Dividends and interest 17,237 12,550
Capital shares sold 61,581 970
Other assets 8,030 9,543
- --------------------------------------------------------------------------------
TOTAL ASSETS 15,295,958 34,339,954
- --------------------------------------------------------------------------------
LIABILITIES
- --------------------------------------------------------------------------------
Payables:
Investments purchased -- --
Capital shares redeemed 40,113 7,152
Adviser and affiliates 10,049 37,323
Accounts payable and accrued expenses 26,909 32,799
Written options at value (Premiums $0,
$68,799, $0, $663,299 and $0) -- 64,000
Due to custodian -- --
- --------------------------------------------------------------------------------
TOTAL LIABILITIES 77,071 141,274
- --------------------------------------------------------------------------------
NET ASSETS $15,218,887 $34,198,680
=========== ===========
NET ASSETS CONSIST OF:
- --------------------------------------------------------------------------------
Paid-in capital $19,559,630 $39,509,010
Accumulated undistributed net investment income
(distributions in excess of net investment
income) 12,339 (409,888)
Accumulated net realized loss on investments
and foreign currencies (4,578,780) (7,668,248)
Net unrealized appreciation (depreciation) of
investments and other assets and
liabilities denominated in foreign
currencies 225,698 2,767,806
----------- -----------
Net assets applicable to capital shares
outstanding $15,218,887 $34,198,680
=========== ===========
BY SHARE CLASS
NET ASSETS
- --------------------------------------------------------------------------------
Investor class $15,218,887 $34,198,680
Institutional class n/a n/a
CAPITAL SHARES OUTSTANDING, AN UNLIMITED NUMBER
OF NO PAR SHARES AUTHORIZED
- --------------------------------------------------------------------------------
Investor class 810,453 2,246,059
Institutional class n/a n/a
NET ASSET VALUE, PUBLIC OFFERING PRICE,
REDEMPTION PRICE, PER SHARE
- --------------------------------------------------------------------------------
Investor class $ 18.78 $ 15.23
Institutional class N/A N/A
See accompanying notes to financial statements.
146
June 30, 2010
GLOBAL MEGATRENDS GLOBAL RESOURCES WORLD PRECIOUS
FUND FUND MINERALS FUND
Investments, at identified cost $18,304,901 $636,409,251 $566,293,802
=========== ============ ============
ASSETS
- ---------------------------------------------------------------------------------------------------------------
Investments, at value:
Securities of unaffiliated issuers $16,281,153 $518,403,659 $552,215,535
Securities of affiliated issuers -- 4,557,161 28,212,871
Repurchase agreements 1,951,062 66,666,988 39,471,105
Cash -- 154 154
Foreign currencies (Cost $0, $808, $0, $90,413
and $108,052) -- 88,903 107,657
Receivables:
Investments sold 1,295,307 39,469,104 3,963,004
Dividends and interest 120,623 518,263 33,355
Capital shares sold 13,349 259,754 209,498
Other assets 9,396 52,403 162,277
- ---------------------------------------------------------------------------------------------------------------
TOTAL ASSETS 19,670,890 630,016,389 624,375,456
- ---------------------------------------------------------------------------------------------------------------
LIABILITIES
- ---------------------------------------------------------------------------------------------------------------
Payables:
Investments purchased 4 40,752 612,666
Capital shares redeemed 20,580 949,967 707,365
Adviser and affiliates 8,198 810,177 907,393
Accounts payable and accrued expenses 25,689 130,367 113,656
Written options at value (Premiums $0,
$68,799, $0, $663,299 and $0) -- 217,500 --
Due to custodian 13,679 -- --
- ---------------------------------------------------------------------------------------------------------------
TOTAL LIABILITIES 68,150 2,148,763 2,341,080
- ---------------------------------------------------------------------------------------------------------------
NET ASSETS $19,602,740 $627,867,626 $622,034,376
=========== ============ ============
NET ASSETS CONSIST OF:
- ---------------------------------------------------------------------------------------------------------------
Paid-in capital $34,628,406 1$,118,402,202 $701,332,756
Accumulated undistributed net investment income
(distributions in excess of net investment
income) 102,874 (9,184,575) (37,608,481)
Accumulated net realized loss on investments
and foreign currencies (15,055,348) (435,011,123) (95,304,249)
Net unrealized appreciation (depreciation) of
investments and other assets and
liabilities denominated in foreign
currencies (73,192) (46,338,878) 53,614,350
----------- ------------ ------------
Net assets applicable to capital shares
outstanding $19,602,740 $627,867,626 $622,034,376
=========== ============ ============
BY SHARE CLASS
NET ASSETS
- ---------------------------------------------------------------------------------------------------------------
Investor class $19,593,545 $624,221,182 $622,024,033
Institutional class 9,195 3,646,444 10,343
CAPITAL SHARES OUTSTANDING, AN UNLIMITED NUMBER
OF NO PAR SHARES AUTHORIZED
- ---------------------------------------------------------------------------------------------------------------
Investor class 2,720,844 75,259,836 34,717,437
Institutional class 1,276 438,911 576
NET ASSET VALUE, PUBLIC OFFERING PRICE,
REDEMPTION PRICE, PER SHARE
- ---------------------------------------------------------------------------------------------------------------
Investor class $ 7.20 $ 8.29 $ 17.92
Institutional class 7.21 8.31 17.96
147
STATEMENTS OF ASSETS AND LIABILITIES (UNAUDITED)
GOLD AND PRECIOUS
METALS FUND
Investments, at identified cost $188,954,192
============
ASSETS
- -------------------------------------------------------------------------------
Investments, at value:
Securities $215,165,100
Repurchase agreements 14,594,286
Cash 154
Foreign currencies (Cost $222,790, $46,947, $6,046 and
$294,495) 221,974
Receivables:
Investments sold 5,606,807
Dividends and interest 26,335
Capital shares sold 297,234
Other assets 29,863
- -------------------------------------------------------------------------------
TOTAL ASSETS 235,941,753
- -------------------------------------------------------------------------------
LIABILITIES
- -------------------------------------------------------------------------------
Payables:
Investments purchased 249,089
Capital shares redeemed 290,797
Adviser and affiliates 309,179
Accounts payable and accrued expenses 69,760
Written options at value (Premiums $15,950, $0,
$0 and $0) 6,000
- -------------------------------------------------------------------------------
TOTAL LIABILITIES 924,825
- -------------------------------------------------------------------------------
NET ASSETS $235,016,928
============
NET ASSETS CONSIST OF:
- -------------------------------------------------------------------------------
Paid-in capital 208,058,392
Distributions in excess of net investment income (3,742,492)
Accumulated net realized loss on investments and foreign
currencies (10,099,890)
Net unrealized appreciation of investments and other assets
and liabilities denominated in foreign currencies 40,800,918
------------
Net assets applicable to capital shares outstanding $235,016,928
============
BY SHARE CLASS
NET ASSETS
- -------------------------------------------------------------------------------
Investor class $235,016,928
CAPITAL SHARES OUTSTANDING, AN UNLIMITED NUMBER OF NO PAR
SHARES AUTHORIZED
- -------------------------------------------------------------------------------
Investor class 14,176,137
NET ASSET VALUE, PUBLIC OFFERING PRICE, REDEMPTION PRICE,
PER SHARE
- -------------------------------------------------------------------------------
Investor class $ 16.58
See accompanying notes to financial statements.
148
June 30, 2010
EASTERN GLOBAL EMERGING CHINA
EUROPEAN FUND MARKETS FUND REGION FUND
Investments, at identified cost $323,900,334 $11,107,758 $40,225,420
============ =========== ===========
ASSETS
- ------------------------------------------------------------------------------------------------------------------
Investments, at value:
Securities $332,819,827 $10,585,341 $39,123,381
Repurchase agreements 27,763,182 682,143 5,950,025
Cash 201,948 154 5,024
Foreign currencies (Cost $222,790, $46,947, $6,046 and
$294,495) 46,438 5,993 292,260
Receivables:
Investments sold 10,913,021 514,522 2,265,714
Dividends and interest 1,829,673 17,250 96,970
Capital shares sold 77,937 5,499 39,495
Other assets 35,682 16,883 13,877
- ------------------------------------------------------------------------------------------------------------------
TOTAL ASSETS 373,687,708 11,827,785 47,786,746
- ------------------------------------------------------------------------------------------------------------------
LIABILITIES
- ------------------------------------------------------------------------------------------------------------------
Payables:
Investments purchased 943,982 -- --
Capital shares redeemed 240,261 3,980 35,455
Adviser and affiliates 490,954 7,607 73,082
Accounts payable and accrued expenses 136,657 55,452 52,107
Written options at value (Premiums $15,950, $0,
$0 and $0) -- -- --
- ------------------------------------------------------------------------------------------------------------------
TOTAL LIABILITIES 1,811,854 67,039 160,644
- ------------------------------------------------------------------------------------------------------------------
NET ASSETS $371,875,854 $11,760,746 $47,626,102
============ =========== ===========
NET ASSETS CONSIST OF:
- ------------------------------------------------------------------------------------------------------------------
Paid-in capital $721,154,493 $25,065,309 $65,652,958
Distributions in excess of net investment income (628,189) (103,159) (919,038)
Accumulated net realized loss on investments and foreign
currencies (385,340,398) (13,361,089) (21,954,029)
Net unrealized appreciation of investments and other assets
and liabilities denominated in foreign currencies 36,689,948 159,685 4,846,211
------------ ----------- -----------
Net assets applicable to capital shares outstanding $371,875,854 $11,760,746 $47,626,102
============ =========== ===========
BY SHARE CLASS
NET ASSETS
- ------------------------------------------------------------------------------------------------------------------
Investor class $371,875,854 $11,760,746 $47,626,102
CAPITAL SHARES OUTSTANDING, AN UNLIMITED NUMBER OF NO PAR
SHARES AUTHORIZED
- ------------------------------------------------------------------------------------------------------------------
Investor class 45,522,383 1,573,051 5,984,084
NET ASSET VALUE, PUBLIC OFFERING PRICE, REDEMPTION PRICE,
PER SHARE
- ------------------------------------------------------------------------------------------------------------------
Investor class $ 8.17 $ 7.48 $ 7.96
149
STATEMENTS OF OPERATIONS (UNAUDITED)
U.S. TREASURY
SECURITIES
CASH FUND
NET INVESTMENT INCOME
INCOME:
- ---------------------------------------------------------------------------
Interest and other $ 71,545
EXPENSES:
- ---------------------------------------------------------------------------
Management fee 262,544
Administrative services fee 42,007
Transfer agent fees and expenses 117,770
Accounting service fees and expenses 10,172
Professional fees 17,012
Custodian fees 29,320
Shareholder reporting expenses 12,926
Registration fees 11,287
Trustee fees and expenses 9,397
Miscellaneous expenses 18,148
---------
Total expenses before reductions 530,583
Expenses offset - Note 1 H --
Expenses reimbursed - Note 3 (464,294)
---------
NET EXPENSES 66,289
- ---------------------------------------------------------------------------
NET INVESTMENT INCOME 5,256
- ---------------------------------------------------------------------------
NET REALIZED AND UNREALIZED GAIN (LOSS)
ON INVESTMENTS
Realized gain (loss) from securities --
Net change in unrealized appreciation of Investments --
- ---------------------------------------------------------------------------
NET REALIZED AND UNREALIZED GAIN ON INVESTMENTS --
- ---------------------------------------------------------------------------
NET INCREASE IN NET ASSETS
RESULTING FROM OPERATIONS $ 5,256
=========
See accompanying notes to financial statements.
150
For the Six Months Ended June 30, 2010
U.S. GOVERNMENT NEAR-TERM
SECURITIES TAX FREE
SAVINGS FUND FUND TAX FREE FUND
NET INVESTMENT INCOME
INCOME:
- -------------------------------------------------------------------------------------------------------------
Interest and other $ 201,960 $ 367,751 $ 472,641
EXPENSES:
- -------------------------------------------------------------------------------------------------------------
Management fee 598,538 61,050 81,043
Administrative services fee 95,842 9,768 8,645
Transfer agent fees and expenses 148,540 26,635 25,674
Accounting service fees and expenses 20,065 19,091 17,408
Professional fees 22,961 18,456 17,626
Custodian fees 28,926 6,345 5,152
Shareholder reporting expenses 19,377 1,959 2,337
Registration fees 13,320 9,121 8,235
Trustee fees and expenses 9,397 9,396 9,396
Miscellaneous expenses 34,053 3,758 4,333
--------- --------- ---------
Total expenses before reductions 991,019 165,579 179,849
Expenses offset - Note 1 H -- (56) (85)
Expenses reimbursed - Note 3 (801,036) (110,578) (104,124)
--------- --------- ---------
NET EXPENSES 189,983 54,945 75,640
- -------------------------------------------------------------------------------------------------------------
NET INVESTMENT INCOME 11,977 312,806 397,001
- -------------------------------------------------------------------------------------------------------------
NET REALIZED AND UNREALIZED GAIN (LOSS)
ON INVESTMENTS
Realized gain (loss) from securities 938 (444) 13,128
Net change in unrealized appreciation of Investments -- 198,324 209,835
- -------------------------------------------------------------------------------------------------------------
NET REALIZED AND UNREALIZED GAIN ON INVESTMENTS 938 197,880 222,963
- -------------------------------------------------------------------------------------------------------------
NET INCREASE IN NET ASSETS
RESULTING FROM OPERATIONS $ 12,915 $ 510,686 $ 619,964
========= ========= =========
151
STATEMENTS OF OPERATIONS (UNAUDITED)
ALL AMERICAN HOLMES
EQUITY FUND GROWTH FUND
NET INVESTMENT INCOME
INCOME:
- ------------------------------------------------------------------------------------------
Dividends from unaffiliated issuers $ 172,381 $ 33,400
Foreign tax withheld on dividends (132) (789)
----------- -----------
Net dividends 172,249 32,611
Interest and other 728 13,740
----------- -----------
TOTAL INCOME 172,977 46,351
EXPENSES:
- ------------------------------------------------------------------------------------------
Management fee 45,992 138,646
Administrative services fee 6,551 14,648
Administrative services fee - Investor class -- --
Administrative services fee - Institutional
class -- --
Transfer agent fees and expenses - Investor
class 51,472 48,397
Transfer agent fees and expenses - Institutional
class -- --
Accounting service fees and expenses 10,106 13,190
Professional fees 19,239 19,840
Professional fees - Investor class -- --
Professional fees - Institutional class -- --
Distribution plan fee 20,472 45,776
Custodian fees 10,008 22,040
Shareholder reporting expenses - Investor class 10,552 7,816
Shareholder reporting expenses - Institutional
class -- --
Registration fees 8,824 8,084
Registration fees - Investor class -- --
Registration fees - Institutional class -- --
Trustee fees and expenses 9,397 9,397
Miscellaneous expenses 11,173 13,120
----------- -----------
Total expenses before reductions 203,786 340,954
Expenses offset - Note 1 H (117) (70)
Expenses reimbursed - Note 3 (43,031) (20)
----------- -----------
NET EXPENSES 160,638 340,864
- ------------------------------------------------------------------------------------------
NET INVESTMENT INCOME (LOSS) 12,339 (294,513)
- ------------------------------------------------------------------------------------------
NET REALIZED AND UNREALIZED
GAIN (LOSS) ON INVESTMENTS
Realized gain (loss) from:
Securities from unaffiliated issuers 1,606,375 2,870,066
Securities from affiliated issuers -- --
Written options 16,252 (19,931)
Foreign currency transactions -- (6,789)
----------- -----------
NET REALIZED GAIN 1,622,627 2,843,346
----------- -----------
Net change in unrealized appreciation (depreciation) of:
Investments (2,290,769) (3,172,259)
Written options 672 6,311
Other assets and liabilities denominated in
foreign currencies 1 193
----------- -----------
NET UNREALIZED APPRECIATION (DEPRECIATION) (2,290,096) (3,165,755)
- ------------------------------------------------------------------------------------------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON
INVESTMENTS (667,469) (322,409)
- ------------------------------------------------------------------------------------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM
OPERATIONS $ (655,130) $ (616,922)
=========== ===========
See accompanying notes to financial statements.
152
For the Six Months Ended June 30, 2010
GLOBAL MEGATRENDS GLOBAL RESOURCES WORLD PRECIOUS
FUND FUND MINERALS FUND
NET INVESTMENT INCOME
INCOME:
- ----------------------------------------------------------------------------------------------------------------------
Dividends from unaffiliated issuers $ 344,056 $ 2,330,992 $ 487,452
Foreign tax withheld on dividends (20,929) (103,614) (46,598)
----------- ------------ -----------
Net dividends 323,127 2,227,378 440,854
Interest and other 17,319 277,396 81,079
----------- ------------ -----------
TOTAL INCOME 340,446 2,504,774 521,933
EXPENSES:
- ----------------------------------------------------------------------------------------------------------------------
Management fee 106,105 3,638,297 3,821,028
Administrative services fee 6,632 191,548 167,383
Administrative services fee - Investor class 3,255 96,525 87,193
Administrative services fee - Institutional
class 1 235 1
Transfer agent fees and expenses - Investor
class 49,792 862,833 626,178
Transfer agent fees and expenses - Institutional
class 4,746 4,738 4,746
Accounting service fees and expenses 17,373 121,952 106,059
Professional fees 18,237 49,569 56,268
Professional fees - Investor class 601 601 601
Professional fees - Institutional class 1,246 1,246 1,246
Distribution plan fee 30,891 899,155 795,544
Custodian fees 22,510 93,196 127,095
Shareholder reporting expenses - Investor class 6,865 123,500 73,821
Shareholder reporting expenses - Institutional
class 432 568 432
Registration fees 8,267 16,334 17,584
Registration fees - Investor class 139 131 131
Registration fees - Institutional class 5,767 5,767 5,767
Trustee fees and expenses 9,400 9,398 9,397
Miscellaneous expenses 12,592 70,250 61,405
----------- ------------ -----------
Total expenses before reductions 304,851 6,185,843 5,961,879
Expenses offset - Note 1 H (69) (100) (48)
Expenses reimbursed - Note 3 (31,838) (12,555) (12,192)
----------- ------------ -----------
NET EXPENSES 272,944 6,173,188 5,949,639
- ----------------------------------------------------------------------------------------------------------------------
NET INVESTMENT INCOME (LOSS) 67,502 (3,668,414) (5,427,706)
- ----------------------------------------------------------------------------------------------------------------------
NET REALIZED AND UNREALIZED
GAIN (LOSS) ON INVESTMENTS
Realized gain (loss) from:
Securities from unaffiliated issuers 1,003,432 63,989,003 15,358,235
Securities from affiliated issuers -- (543,497) 3,179,948
Written options 13,370 (157,855) 210,890
Foreign currency transactions (3,945) 10,959 (434,716)
----------- ------------ -----------
NET REALIZED GAIN 1,012,857 63,298,610 18,314,357
----------- ------------ -----------
Net change in unrealized appreciation (depreciation) of:
Investments (3,923,722) (104,545,303) 4,555,204
Written options -- 356,318 --
Other assets and liabilities denominated in
foreign currencies (365) (2,373) (23,575)
----------- ------------ -----------
NET UNREALIZED APPRECIATION (DEPRECIATION) (3,924,087) (104,191,358) 4,531,629
- ----------------------------------------------------------------------------------------------------------------------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON
INVESTMENTS (2,911,230) (40,892,748) 22,845,986
- ----------------------------------------------------------------------------------------------------------------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM
OPERATIONS $(2,843,728) $(44,561,162) $17,418,280
=========== ============ ===========
152
STATEMENTS OF OPERATIONS (UNAUDITED)
GOLD AND PRECIOUS
METALS FUND
NET INVESTMENT INCOME
INCOME:
- ----------------------------------------------------------------------------------
Dividends $ 335,783
Foreign tax withheld on dividends (32,671)
-----------
Net dividends 303,112
Interest and other 28,617
-----------
TOTAL INCOME 331,729
EXPENSES:
- ----------------------------------------------------------------------------------
Management fee 1,289,112
Administrative services fee 90,295
Transfer agent fees and expenses 223,273
Accounting service fees and expenses 45,995
Professional fees 28,803
Distribution plan fee 282,171
Custodian fees 71,702
Shareholder reporting expenses 44,034
Registration fees 14,478
Trustee fees and expenses 9,397
Miscellaneous expenses 39,321
-----------
Total expenses before reductions 2,138,581
Expenses offset - Note 1 H (24)
Expenses reimbursed - Note 3 --
-----------
NET EXPENSES 2,138,557
- ----------------------------------------------------------------------------------
NET INVESTMENT INCOME (LOSS) (1,806,828)
- ----------------------------------------------------------------------------------
NET REALIZED AND UNREALIZED
GAIN (LOSS) ON INVESTMENTS
Realized gain (loss) from:
Securities from unaffiliated issuers 13,555,374
Written options 62,961
Foreign currency transactions (103,009)
-----------
NET REALIZED GAIN 13,515,326
-----------
Net change in unrealized appreciation (depreciation) of:
Investments 3,484,350
Written options 9,950
Other assets and liabilities denominated in
foreign currencies (31,278)
-----------
NET UNREALIZED APPRECIATION (DEPRECIATION) 3,463,022
- ----------------------------------------------------------------------------------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS 16,978,348
- ----------------------------------------------------------------------------------
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS $15,171,520
===========
See accompanying notes to financial statements.
154
For the Six Months Ended June 30, 2010
EASTERN EUROPEAN GLOBAL EMERGING CHINA REGION
FUND MARKETS FUND FUND
NET INVESTMENT INCOME
INCOME:
- ---------------------------------------------------------------------------------------------------------------------------
Dividends $ 4,127,831 $ 115,706 $ 344,450
Foreign tax withheld on dividends (565,355) (9,485) (24,396)
------------ --------- -----------
Net dividends 3,562,476 106,221 320,054
Interest and other 21,768 423 4,158
------------ --------- -----------
TOTAL INCOME 3,584,244 106,644 324,212
EXPENSES:
- ---------------------------------------------------------------------------------------------------------------------------
Management fee 2,247,030 74,626 273,898
Administrative services fee 175,958 5,230 20,894
Transfer agent fees and expenses 538,080 37,747 91,152
Accounting service fees and expenses 80,824 15,075 21,229
Professional fees 31,741 25,110 24,369
Distribution plan fee 549,868 16,343 65,293
Custodian fees 340,195 25,527 31,787
Shareholder reporting expenses 70,590 5,396 15,553
Registration fees 10,556 8,863 9,877
Trustee fees and expenses 9,397 9,397 9,397
Miscellaneous expenses 47,949 15,676 18,280
------------ --------- -----------
Total expenses before reductions 4,102,188 238,990 581,729
Expenses offset - Note 1 H (68) (86) (39)
Expenses reimbursed - Note 3 -- (48,245) (163)
------------ --------- -----------
NET EXPENSES 4,102,120 190,659 581,527
- ---------------------------------------------------------------------------------------------------------------------------
NET INVESTMENT INCOME (LOSS) (517,876) (84,015) (257,315)
- ---------------------------------------------------------------------------------------------------------------------------
NET REALIZED AND UNREALIZED
GAIN (LOSS) ON INVESTMENTS
Realized gain (loss) from:
Securities from unaffiliated issuers 744,942 1,095 2,815,925
Written options -- 6,463 22,204
Foreign currency transactions (256,061) (2,306) (19,096)
------------ --------- -----------
NET REALIZED GAIN 488,881 5,252 2,819,033
------------ --------- -----------
Net change in unrealized appreciation (depreciation) of:
Investments (44,291,537) (723,252) (5,274,387)
Written options -- -- --
Other assets and liabilities denominated in
foreign currencies 35,758 (94) (7,861)
------------ --------- -----------
NET UNREALIZED APPRECIATION (DEPRECIATION) (44,255,779) (723,346) (5,282,248)
- ---------------------------------------------------------------------------------------------------------------------------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS (43,766,898) (718,094) (2,463,215)
- ---------------------------------------------------------------------------------------------------------------------------
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS $(44,284,774) $(802,109) $(2,720,530)
============ ========= ===========
155
STATEMENTS OF CHANGES IN NET ASSETS
U.S. TREASURY SECURITIES
CASH FUND
--------------------------------
SIX MONTHS ENDED YEAR ENDED
JUNE 30, 2010 DECEMBER 31,
(UNAUDITED) 2009
INCREASE (DECREASE)
IN NET ASSETS
FROM OPERATIONS:
- -----------------------------------------------------------------------------------------
Net investment income $ 5,256 $ 11,265
Net realized gain (loss) -- --
Net unrealized appreciation -- --
------------ ------------
NET INCREASE IN NET ASSETS FROM OPERATIONS 5,256 11,265
DISTRIBUTIONS TO SHAREHOLDERS:
- -----------------------------------------------------------------------------------------
From net investment income
Investor class (4,875) (10,436)
------------ ------------
TOTAL DISTRIBUTIONS TO SHAREHOLDERS (4,875) (10,436)
FROM CAPITAL SHARE TRANSACTIONS:
- -----------------------------------------------------------------------------------------
Proceeds from shares sold
Investor class 68,506,797 153,649,644
Distributions reinvested
Investor class 4,745 10,353
------------ ------------
68,511,542 153,659,997
Cost of shares redeemed
Investor class (67,128,583) (171,181,575)
------------ ------------
NET INCREASE (DECREASE) IN NET ASSETS FROM
CAPITAL SHARE TRANSACTIONS 1,382,959 (17,521,578)
- -----------------------------------------------------------------------------------------
NET INCREASE (DECREASE) IN NET ASSETS 1,383,340 (17,520,749)
- -----------------------------------------------------------------------------------------
NET ASSETS
Beginning of period 103,889,388 121,410,137
- -----------------------------------------------------------------------------------------
END OF PERIOD $105,272,728 $103,889,388
- -----------------------------------------------------------------------------------------
Accumulated undistributed net investment income, end of
period $ 1,210 $ 829
============ ============
CAPITAL SHARE ACTIVITY
- -----------------------------------------------------------------------------------------
Investor class:
Shares sold 68,506,797 153,649,644
Shares reinvested 4,745 10,353
Shares redeemed (67,128,583) (171,181,575)
------------ ------------
NET SHARE ACTIVITY 1,382,959 (17,521,578)
============ ============
See accompanying notes to financial statements.
156
U.S. GOVERNMENT SECURITIES
SAVINGS FUND NEAR-TERM TAX FREE FUND
------------------------------- -------------------------------
SIX MONTHS ENDED YEAR ENDED SIX MONTHS ENDED YEAR ENDED
JUNE 30, 2010 DECEMBER 31, JUNE 30, 2010 DECEMBER 31,
(UNAUDITED) 2009 (UNAUDITED) 2009
INCREASE (DECREASE)
IN NET ASSETS
FROM OPERATIONS:
- ------------------------------------------------------------------------------------------------------------------------------
Net investment income $ 11,977 $ 333,999 $ 312,806 $ 495,023
Net realized gain (loss) 938 -- (444) (722)
Net unrealized appreciation -- -- 198,324 427,850
------------ ------------ ----------- -----------
NET INCREASE IN NET ASSETS FROM OPERATIONS 12,915 333,999 510,686 922,151
DISTRIBUTIONS TO SHAREHOLDERS:
- ------------------------------------------------------------------------------------------------------------------------------
From net investment income
Investor class (11,345) (334,574) (312,936) (494,773)
------------ ------------ ----------- -----------
TOTAL DISTRIBUTIONS TO SHAREHOLDERS (11,345) (334,574) (312,936) (494,773)
FROM CAPITAL SHARE TRANSACTIONS:
- ------------------------------------------------------------------------------------------------------------------------------
Proceeds from shares sold
Investor class 78,542,914 151,396,515 6,262,577 14,685,709
Distributions reinvested
Investor class 11,017 319,050 269,366 402,076
------------ ------------ ----------- -----------
78,553,931 151,715,565 6,531,943 15,087,785
Cost of shares redeemed
Investor class (103,544,892) (256,393,375) (3,655,598) (6,167,222)
------------ ------------ ----------- -----------
NET INCREASE (DECREASE) IN NET ASSETS FROM
CAPITAL SHARE TRANSACTIONS (24,990,961) (104,677,810) 2,876,345 8,920,563
- ------------------------------------------------------------------------------------------------------------------------------
NET INCREASE (DECREASE) IN NET ASSETS (24,989,391) (104,678,385) 3,074,095 9,347,941
- ------------------------------------------------------------------------------------------------------------------------------
NET ASSETS
Beginning of period 253,231,638 357,910,023 23,337,079 13,989,138
- ------------------------------------------------------------------------------------------------------------------------------
END OF PERIOD $228,242,247 $253,231,638 $26,411,174 $23,337,079
- ------------------------------------------------------------------------------------------------------------------------------
Accumulated undistributed net investment income, end of
period $ 261,366 $ 260,734 $ 21,345 $ 21,475
============ ============ =========== ===========
CAPITAL SHARE ACTIVITY
- ------------------------------------------------------------------------------------------------------------------------------
Investor class:
Shares sold 78,542,914 151,396,515 2,815,557 6,661,147
Shares reinvested 11,017 319,050 121,175 182,801
Shares redeemed (103,544,892) (256,393,375) (1,645,963) (2,790,990)
------------ ------------ ----------- -----------
NET SHARE ACTIVITY (24,990,961) (104,677,810) 1,290,769 4,052,958
============ ============ =========== ===========
157
STATEMENTS OF CHANGES IN NET ASSETS
TAX FREE FUND
--------------------------------
SIX MONTHS ENDED YEAR ENDED
JUNE 30, 2010 DECEMBER 31,
(UNAUDITED) 2009
INCREASE (DECREASE)
IN NET ASSETS
FROM OPERATIONS:
- ------------------------------------------------------------------------------------------
Net investment income (loss) $ 397,001 $ 715,558
Net realized gain (loss) 13,128 1,626
Net unrealized appreciation (depreciation) 209,835 700,396
----------- -----------
NET INCREASE (DECREASE) IN NET ASSETS FROM
OPERATIONS 619,964 1,417,580
DISTRIBUTIONS TO SHAREHOLDERS:
- ------------------------------------------------------------------------------------------
From net investment income
Investor class (394,162) (715,942)
----------- -----------
TOTAL DISTRIBUTIONS TO SHAREHOLDERS (394,162) (715,942)
FROM CAPITAL SHARE TRANSACTIONS:
- ------------------------------------------------------------------------------------------
Proceeds from shares sold
Investor class 3,589,358 9,240,470
Distributions reinvested
Investor class 321,076 557,292
Proceeds from short-term trading fees
Investor class -- --
----------- -----------
3,910,434 9,797,762
Cost of shares redeemed
Investor class (4,102,462) (5,343,353)
----------- -----------
NET INCREASE (DECREASE) IN NET ASSETS FROM
CAPITAL SHARE TRANSACTIONS (192,028) 4,454,409
- ------------------------------------------------------------------------------------------
NET INCREASE (DECREASE) IN NET ASSETS 33,774 5,156,047
- ------------------------------------------------------------------------------------------
NET ASSETS
Beginning of period 22,102,079 16,946,032
- ------------------------------------------------------------------------------------------
END OF PERIOD $22,135,853 $22,102,079
- ------------------------------------------------------------------------------------------
Accumulated undistributed net investment income,
(distributions in excess of net investment income), end
of period $ 36,979 $ 34,140
=========== ===========
CAPITAL SHARE ACTIVITY
- ------------------------------------------------------------------------------------------
Investor class:
Shares sold 291,725 759,141
Shares reinvested 26,152 46,071
Shares redeemed (333,815) (439,867)
----------- -----------
NET SHARE ACTIVITY (15,938) 365,345
=========== ===========
See accompanying notes to financial statements.
158
ALL AMERICAN EQUITY FUND HOLMES GROWTH FUND
------------------------------- -------------------------------
SIX MONTHS ENDED YEAR ENDED SIX MONTHS ENDED YEAR ENDED
JUNE 30, 2010 DECEMBER 31, JUNE 30, 2010 DECEMBER 31,
(UNAUDITED) 2009 (UNAUDITED) 2009
INCREASE (DECREASE)
IN NET ASSETS
FROM OPERATIONS:
- ---------------------------------------------------------------------------------------------------------------------------
Net investment income (loss) $ 12,339 $ (113,977) $ (294,513) $ (320,658)
Net realized gain (loss) 1,622,627 (997,174) 2,843,346 (5,028,765)
Net unrealized appreciation (depreciation) (2,290,096) 3,091,465 (3,165,755) 12,371,233
----------- ----------- ----------- -----------
NET INCREASE (DECREASE) IN NET ASSETS FROM
OPERATIONS (655,130) 1,980,314 (616,922) 7,021,810
DISTRIBUTIONS TO SHAREHOLDERS:
- ---------------------------------------------------------------------------------------------------------------------------
From net investment income
Investor class -- (91,991) -- --
----------- ----------- ----------- -----------
TOTAL DISTRIBUTIONS TO SHAREHOLDERS -- (91,991) -- --
FROM CAPITAL SHARE TRANSACTIONS:
- ---------------------------------------------------------------------------------------------------------------------------
Proceeds from shares sold
Investor class 1,289,074 2,018,841 1,664,217 2,773,433
Distributions reinvested
Investor class -- 90,879 -- --
Proceeds from short-term trading fees
Investor class 149 469 237 132
----------- ----------- ----------- -----------
1,289,223 2,110,189 1,664,454 2,773,565
Cost of shares redeemed
Investor class (1,851,449) (3,796,615) (3,997,830) (5,134,081)
----------- ----------- ----------- -----------
NET INCREASE (DECREASE) IN NET ASSETS FROM
CAPITAL SHARE TRANSACTIONS (562,226) (1,686,426) (2,333,376) (2,360,516)
- ---------------------------------------------------------------------------------------------------------------------------
NET INCREASE (DECREASE) IN NET ASSETS (1,217,356) 201,897 (2,950,298) 4,661,294
- ---------------------------------------------------------------------------------------------------------------------------
NET ASSETS
Beginning of period 16,436,243 16,234,346 37,148,978 32,487,684
- ---------------------------------------------------------------------------------------------------------------------------
END OF PERIOD $15,218,887 $16,436,243 $34,198,680 $37,148,978
- ---------------------------------------------------------------------------------------------------------------------------
Accumulated undistributed net investment income,
(distributions in excess of net investment income), end
of period $ 12,339 $ -- $ (409,888) $ (115,375)
=========== =========== =========== ===========
CAPITAL SHARE ACTIVITY
- ---------------------------------------------------------------------------------------------------------------------------
Investor class:
Shares sold 65,318 117,450 103,102 217,283
Shares reinvested -- 4,761 -- --
Shares redeemed (93,239) (220,835) (248,135) (366,984)
----------- ----------- ----------- -----------
NET SHARE ACTIVITY (27,921) (98,624) (145,033) (149,701)
=========== =========== =========== ===========
159
STATEMENTS OF CHANGES IN NET ASSETS
GLOBAL MEGATRENDS
FUND
--------------------------------
SIX MONTHS ENDED YEAR ENDED
JUNE 30, 2010 DECEMBER 31,
(UNAUDITED) 2009
INCREASE (DECREASE)
IN NET ASSETS
FROM OPERATIONS:
- ------------------------------------------------------------------------------------------
Net investment income (loss) $ 67,502 $ 119,187
Net realized gain (loss) 1,012,857 (1,465,573)
Net unrealized appreciation (depreciation) (3,924,087) 8,655,684
----------- -----------
NET INCREASE (DECREASE) IN NET ASSETS FROM
OPERATIONS (2,843,728) 7,309,298
DISTRIBUTIONS TO SHAREHOLDERS:
- ------------------------------------------------------------------------------------------
From net investment income
Investor class -- (86,578)
----------- -----------
TOTAL DISTRIBUTIONS TO SHAREHOLDERS -- (86,578)
FROM CAPITAL SHARE TRANSACTIONS:
- ------------------------------------------------------------------------------------------
Proceeds from shares sold
Investor class 3,526,244 11,166,132
Institutional class(a) 10,000 --
Distributions reinvested
Investor class -- 81,740
Proceeds from short-term trading fees
Investor class 122 1,360
Institutional class(a) -- --
----------- -----------
3,536,366 11,249,232
Cost of shares redeemed
Investor class (9,647,213) (11,949,778)
Institutional class(a) -- --
----------- -----------
NET INCREASE (DECREASE) IN NET ASSETS FROM
CAPITAL SHARE TRANSACTIONS (6,110,847) (700,546)
- ------------------------------------------------------------------------------------------
NET INCREASE (DECREASE) IN NET ASSETS (8,954,575) 6,522,174
- ------------------------------------------------------------------------------------------
NET ASSETS
Beginning of period 28,557,315 22,035,141
- ------------------------------------------------------------------------------------------
END OF PERIOD $19,602,740 $28,557,315
- ------------------------------------------------------------------------------------------
Accumulated undistributed net investment income,
(distributions in excess of net investment income), end
of period $ 102,874 $ 35,372
=========== ===========
CAPITAL SHARE ACTIVITY
- ------------------------------------------------------------------------------------------
Investor class:
Shares sold 443,712 1,647,632
Shares reinvested -- 10,129
Shares redeemed (1,225,119) (1,665,659)
----------- -----------
NET SHARE ACTIVITY (781,407) (7,898)
=========== ===========
Institutional class(a):
Shares sold 1,276 --
Shares reinvested -- --
Shares redeemed -- --
----------- -----------
NET SHARE ACTIVITY 1,276 --
=========== ===========
(a)Institutional class commenced operations on March 1, 2010.
See accompanying notes to financial statements.
160
WORLD PRECIOUS MINERALS
GLOBAL RESOURCES FUND FUND
------------------------------- -------------------------------
SIX MONTHS ENDED YEAR ENDED SIX MONTHS ENDED YEAR ENDED
JUNE 30, 2010 DECEMBER 31, JUNE 30, 2010 DECEMBER 31,
(UNAUDITED) 2009 (UNAUDITED) 2009
INCREASE (DECREASE)
IN NET ASSETS
FROM OPERATIONS:
- --------------------------------------------------------------------------------------------------------------------------
Net investment income (loss) $ (3,668,414) $ (455,031) $ (5,427,706) $ (6,444,886)
Net realized gain (loss) 63,298,610 (49,597,871) 18,314,357 24,568,769
Net unrealized appreciation (depreciation) (104,191,358) 350,482,946 4,531,629 292,475,132
------------- ------------- ------------- -------------
NET INCREASE (DECREASE) IN NET ASSETS FROM
OPERATIONS (44,561,162) 300,430,044 17,418,280 310,599,015
DISTRIBUTIONS TO SHAREHOLDERS:
- --------------------------------------------------------------------------------------------------------------------------
From net investment income
Investor class -- -- -- (24,089,084)
------------- ------------ ------------ ------------
TOTAL DISTRIBUTIONS TO SHAREHOLDERS -- -- -- (24,089,084)
FROM CAPITAL SHARE TRANSACTIONS:
- --------------------------------------------------------------------------------------------------------------------------
Proceeds from shares sold
Investor class 82,811,820 181,440,914 96,756,030 139,489,345
Institutional class(a) 4,369,532 -- 10,000 --
Distributions reinvested
Investor class -- -- -- 23,204,309
Proceeds from short-term trading fees
Investor class 24,527 30,658 80,011 58,946
Institutional class(a) 2 -- -- --
------------- ------------- ------------- -------------
87,205,881 181,471,572 96,846,041 162,752,600
Cost of shares redeemed
Investor class (154,811,571) (206,354,015) (131,265,263) (169,346,997)
Institutional class(a) (37,111) -- -- --
------------- ------------- ------------- -------------
NET INCREASE (DECREASE) IN NET ASSETS FROM
CAPITAL SHARE TRANSACTIONS (67,642,801) (24,882,443) (34,419,222) (6,594,397)
- --------------------------------------------------------------------------------------------------------------------------
NET INCREASE (DECREASE) IN NET ASSETS (112,203,963) 275,547,601 (17,000,942) 279,915,534
- --------------------------------------------------------------------------------------------------------------------------
NET ASSETS
Beginning of period 740,071,589 464,523,988 639,035,318 359,119,784
- --------------------------------------------------------------------------------------------------------------------------
END OF PERIOD $ 627,867,626 $ 740,071,589 $ 622,034,376 $ 639,035,318
- --------------------------------------------------------------------------------------------------------------------------
Accumulated undistributed net investment income,
(distributions in excess of net investment income), end
of period $ (9,184,575) $ (5,516,161) $ (37,608,481) $ (32,180,775)
============= ============= ============= =============
CAPITAL SHARE ACTIVITY
- --------------------------------------------------------------------------------------------------------------------------
Investor class:
Shares sold 9,004,826 26,149,328 5,433,820 10,066,467
Shares reinvested -- -- -- 1,380,387
Shares redeemed (17,370,496) (30,816,159) (7,393,675) (12,317,772)
------------- ------------- ------------- -------------
NET SHARE ACTIVITY (8,365,670) (4,666,831) (1,959,855) (870,918)
============= ============= ============= =============
Institutional class(a):
Shares sold 443,190 -- 576 --
Shares reinvested -- -- -- --
Shares redeemed (4,279) -- -- --
------------- ------------ ------------ -------------
NET SHARE ACTIVITY 438,911 -- 576 --
============= ============= ============= =============
161
STATEMENTS OF CHANGES IN NET ASSETS
GOLD AND PRECIOUS
METALS FUND
--------------------------------
SIX MONTHS ENDED YEAR ENDED
JUNE 30, 2010 DECEMBER 31,
(UNAUDITED) 2009
INCREASE (DECREASE)
IN NET ASSETS
FROM OPERATIONS:
- -----------------------------------------------------------------------------------------
Net investment income (loss) $ (1,806,828) $ (2,470,350)
Net realized gain (loss) 13,515,326 24,636,372
Net unrealized appreciation (depreciation) 3,463,022 54,750,243
------------ -------------
NET INCREASE (DECREASE) IN NET ASSETS FROM
OPERATIONS 15,171,520 76,916,265
DISTRIBUTIONS TO SHAREHOLDERS:
- -----------------------------------------------------------------------------------------
From net investment income
Investor class -- (605,996)
------------ -------------
TOTAL DISTRIBUTIONS TO SHAREHOLDERS -- (605,996)
FROM CAPITAL SHARE TRANSACTIONS:
- -----------------------------------------------------------------------------------------
Proceeds from shares sold
Investor class 40,154,105 69,373,429
Distributions reinvested
Investor class -- 576,071
Proceeds from short-term trading fees
Investor class 57,642 65,721
------------ -------------
40,211,747 70,015,221
Cost of shares redeemed
Investor class (54,759,725) (104,137,668)
------------ -------------
NET INCREASE (DECREASE) IN NET ASSETS FROM
CAPITAL SHARE TRANSACTIONS (14,547,978) (34,122,447)
- -----------------------------------------------------------------------------------------
NET INCREASE (DECREASE) IN NET ASSETS 623,542 42,187,822
- -----------------------------------------------------------------------------------------
NET ASSETS
Beginning of period 234,393,386 192,205,564
- -----------------------------------------------------------------------------------------
END OF PERIOD $235,016,928 $ 234,393,386
- -----------------------------------------------------------------------------------------
Distributions in excess of net investment income, end
of period $ (3,742,492) $ (1,935,664)
============ =============
CAPITAL SHARE ACTIVITY
- -----------------------------------------------------------------------------------------
Investor class:
Shares sold 2,515,768 5,480,136
Shares reinvested -- 37,166
Shares redeemed (3,497,871) (8,113,350)
------------ -------------
NET SHARE ACTIVITY (982,103) (2,596,048)
============ =============
See accompanying notes to financial statements.
162
GLOBAL EMERGING MARKETS
EASTERN EUROPEAN FUND FUND
------------------------------- -------------------------------
SIX MONTHS ENDED YEAR ENDED SIX MONTHS ENDED YEAR ENDED
JUNE 30, 2010 DECEMBER 31, JUNE 30, 2010 DECEMBER 31,
(UNAUDITED) 2009 (UNAUDITED) 2009
INCREASE (DECREASE)
IN NET ASSETS
FROM OPERATIONS:
- --------------------------------------------------------------------------------------------------------------------------
Net investment income (loss) $ (517,876) $ 12,626 $ (84,015) $ (87,232)
Net realized gain (loss) 488,881 (259,277,580) 5,252 (5,043,969)
Net unrealized appreciation (depreciation) (44,255,779) 465,669,916 (723,346) 9,749,634
------------ ------------- ----------- -----------
NET INCREASE (DECREASE) IN NET ASSETS FROM
OPERATIONS (44,284,774) 206,404,962 (802,109) 4,618,433
DISTRIBUTIONS TO SHAREHOLDERS:
- --------------------------------------------------------------------------------------------------------------------------
From net investment income
Investor class -- -- -- --
------------ ------------- ----------- -----------
TOTAL DISTRIBUTIONS TO SHAREHOLDERS -- -- -- --
FROM CAPITAL SHARE TRANSACTIONS:
- --------------------------------------------------------------------------------------------------------------------------
Proceeds from shares sold
Investor class 21,515,716 60,092,169 911,638 2,643,707
Distributions reinvested
Investor class -- -- -- --
Proceeds from short-term trading fees
Investor class 126,380 259,343 7,427 8,428
------------ ------------- ----------- -----------
21,642,096 60,351,512 919,065 2,652,135
Cost of shares redeemed
Investor class (69,890,347) (119,667,750) (2,175,408) (3,114,125)
------------ ------------- ----------- -----------
NET INCREASE (DECREASE) IN NET ASSETS FROM
CAPITAL SHARE TRANSACTIONS (48,248,251) (59,316,238) (1,256,343) (461,990)
- --------------------------------------------------------------------------------------------------------------------------
NET INCREASE (DECREASE) IN NET ASSETS (92,533,025) 147,088,724 (2,058,452) 4,156,443
- --------------------------------------------------------------------------------------------------------------------------
NET ASSETS
Beginning of period 464,408,879 317,320,155 13,819,198 9,662,755
- --------------------------------------------------------------------------------------------------------------------------
END OF PERIOD $371,875,854 $ 464,408,879 $11,760,746 $13,819,198
- --------------------------------------------------------------------------------------------------------------------------
Distributions in excess of net investment income, end
of period $ (628,189) $ (110,313) $ (103,159) $ (19,144)
============ ============= =========== ===========
CAPITAL SHARE ACTIVITY
- --------------------------------------------------------------------------------------------------------------------------
Investor class:
Shares sold 2,260,337 8,490,410 114,170 401,295
Shares reinvested -- -- -- --
Shares redeemed (7,720,080) (19,544,443) (279,740) (488,408)
------------ ------------- ----------- -----------
NET SHARE ACTIVITY (5,459,743) (11,054,033) (165,570) (87,113)
============ ============= =========== ===========
163
STATEMENTS OF CHANGES IN NET ASSETS
CHINA REGION FUND
--------------------------------
SIX MONTHS ENDED YEAR ENDED
JUNE 30, 2010 DECEMBER 31,
(UNAUDITED) 2009
INCREASE (DECREASE)
IN NET ASSETS
FROM OPERATIONS:
- ------------------------------------------------------------------------------------------
Net investment loss $ (257,315) $ (377,483)
Net realized gain 2,819,033 7,910,825
Net unrealized appreciation (depreciation) (5,282,248) 11,635,412
------------ ------------
NET INCREASE (DECREASE) IN NET ASSETS FROM
OPERATIONS (2,720,530) 19,168,754
DISTRIBUTIONS TO SHAREHOLDERS:
- ------------------------------------------------------------------------------------------
From net investment income -- --
Investor class -- --
------------ ------------
TOTAL DISTRIBUTIONS TO SHAREHOLDERS -- --
FROM CAPITAL SHARE TRANSACTIONS:
- ------------------------------------------------------------------------------------------
Proceeds from shares sold
Investor class 5,173,574 17,131,885
Distributions reinvested
Investor class -- --
Proceeds from short-term trading fees
Investor class 23,918 85,053
------------ ------------
5,197,492 17,216,938
Cost of shares redeemed
Investor class (11,174,180) (18,410,242)
------------ ------------
NET DECREASE IN NET ASSETS FROM CAPITAL SHARE
TRANSACTIONS (5,976,688) (1,193,304)
- ------------------------------------------------------------------------------------------
NET INCREASE (DECREASE) IN NET ASSETS (8,697,218) 17,975,450
- ------------------------------------------------------------------------------------------
NET ASSETS
Beginning of period 56,323,320 38,347,870
- ------------------------------------------------------------------------------------------
END OF PERIOD $ 47,626,102 $ 56,323,320
- ------------------------------------------------------------------------------------------
Distributions in excess of net investment income, end of
period $ (919,038) $ (661,723)
============ ============
CAPITAL SHARE ACTIVITY
- ------------------------------------------------------------------------------------------
Investor class:
Shares sold 631,657 2,675,507
Shares reinvested -- --
Shares redeemed (1,387,621) (2,794,611)
------------ ------------
NET SHARE ACTIVITY (755,964) (119,104)
============ ============
See accompanying notes to financial statements.
164
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) June 30, 2010
NOTE 1: SIGNIFICANT ACCOUNTING POLICIES
U.S. Global Investors Funds (Trust), consisting of thirteen
separate funds (Funds), is organized as a Delaware statutory trust.
Each Fund 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 Global Resources, World Precious
Minerals, Gold and Precious Metals, Eastern European, Global
Emerging Markets and China Region. A nondiversified fund may invest
a significant portion of its assets in a small number of companies.
Effective March 1, 2010, Global MegaTrends, Global Resources and
World Precious Minerals Funds offered a new Institutional class of
shares (Institutional Class). For all funds, the class existing
prior to March 1, 2010, was renamed the Investor Class (Investor
Class).
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 of its market 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
quotation. Short-term investments with effective maturities of
sixty days or less at the date of purchase may be valued at
amortized cost, which approximates market value. An independent
pricing service values municipal securities, long-term U.S.
Government obligations and corporate debt securities 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.
165
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) June 30, 2010
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. At June 30, 2010, this model was used to value certain
foreign securities in All American Equity, Holmes Growth, Global
MegaTrends, Global Resources, World Previous Minerals, Gold and
Precious Metals, Eastern European, Global Emerging Markets and
China Region Funds (Equity Funds).
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. Investment income is recorded net
of foreign taxes withheld where recovery of such taxes is
uncertain. Investment income and realized and unrealized gains
(losses) are allocated to each Fund's share class based on their
respective net assets.
The Funds may purchase securities on a when-issued or
delayed-delivery basis and segregate the liquid assets on their
books collateral with a value at least equal to the amount of the
commitment. Losses may arise due to the changes in the value of the
underlying securities or if the counterparty does not perform under
the contract.
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.
166
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) June 30, 2010
E. FOREIGN CURRENCY TRANSACTIONS
Some Funds may invest in securities of foreign issuers. The
accounting records of these Funds are maintained in U.S. dollars.
At each net asset value determination date, the value of assets and
liabilities denominated in foreign currencies are translated into
U.S. dollars using the current prevailing exchange rate. Security
transactions, income and expenses are converted at the prevailing
rate of exchange on the respective dates of the transactions. The
effect of changes in foreign exchange rates on foreign denominated
securities is included with the net realized and unrealized gain or
loss on securities. Other foreign currency gains or losses are
reported separately.
F. 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. Each Fund may be subject to
foreign taxes on income and gains on investments, which are accrued
based on the Fund's understanding of the tax rules and regulations
in the foreign markets.
The Funds recognize the tax benefits of uncertain tax positions
only where the position is "more likely than not" to be sustained
assuming examination by tax authorities. Management has analyzed
the Funds' tax positions, and has concluded that no liability for
unrecognized tax benefits should be recorded related to uncertain
tax positions taken on returns filed for open tax years or expected
to be taken in 2009 tax returns. Tax years 2005 through 2008 remain
subject to examination by major tax jurisdictions, which include
the United States of America and the Commonwealth of Massachusetts.
The Funds have no examinations in progress. Management is not aware
of any tax positions for which it is reasonably possible that the
total amounts of unrecognized tax benefits will change materially
in the next 12 months.
G. DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS
The Funds record dividends and distributions to shareholders on the
ex-dividend date. Distributions are determined in accordance with
income tax regulations, which may differ from accounting principles
generally accepted in the United States. Accordingly, periodic
reclassifications related to permanent book and tax basis
differences are made within the Funds' capital accounts to reflect
income and gains available for distribution under income tax
regulations.
The Funds generally pay income dividends and distribute capital
gains, if any, 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
167
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) June 30, 2010
distributions payable at period end are processed for reinvestment
on the following business day. A Fund may elect to designate a
portion of the earnings and profits distributed to shareholders on
the redemption of fund shares during the year as distributions for
federal income tax purposes.
H. EXPENSES
Fund specific expenses are allocated to that Fund and pro rata
across share classes. Expenses that are not fund specific are
allocated among Funds and pro rata across share classes. Class
specific expenses (including, but not limited to, distribution plan
fees, if any, a portion of the administrative services fees,
transfer agency fees and expenses, shareholder reporting expenses
and certain legal and registration fees) are allocated to the class
that incurs such expense. Expense offset arrangements have been
made with the Funds' custodian so the custodian fees may be paid
indirectly by credits earned on the Funds' cash balances. Such
deposit arrangements are an alternative to overnight investments.
I. 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 Holmes Growth, Global
MegaTrends and Global Resources Funds 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. Shares held in the Eastern European and Global
Emerging Markets Funds 180 days or less are subject to a short-term
trading fee equal to 2.00% of the proceeds of the redeemed shares.
Shares held in the China Region Fund 180 days or less are subject
to a short-term trading fee equal to 1.00% 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.
J. 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.
K. SUBSEQUENT EVENTS EVALUATION
Management has evaluated subsequent events after the balance sheet
date through the date that the financial statements were issued and
determined that there were no events or transactions that would
require recognition or disclosure in the financial statements.
168
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) June 30, 2010
L. NEW ACCOUNTING PRONOUNCEMENTS
In January 2010, the Financial Accounting Standards Board (FASB)
issued Accounting Standards Update (ASU) No. 2010-06, Improving
Disclosures about Fair Value Measurements. This ASU adds new
requirements for disclosures into and out of Levels 1 and 2
fair-value measurements and information on purchases, sales,
issuances and settlements on a gross basis in the reconciliation of
Level 3 fair-value measurements. It also clarifies existing fair
value disclosures about the level of disaggregation, inputs and
valuation techniques. Except for the detailed Level 3
reconciliation disclosures, the guidance in the ASU is effective
for annual and interim reporting periods in fiscal years beginning
after December 15, 2009, and has been incorporated in these
financial statements. The new disclosures for Level 3 activity are
effective for annual and interim reporting periods in fiscal years
beginning after December 15, 2010.
NOTE 2: FINANCIAL DERIVATIVE INSTRUMENTS
A. OPTIONS CONTRACTS
Equity Funds purchase or write (sell) options on securities to
manage their exposure to stock or commodity markets as well as
fluctuations in interest and currency conversion rates. The use of
options carries the risks of a change in value of the underlying
instruments, an illiquid secondary market, or failure of the
counterparty to perform its obligations.
A put option gives the purchaser of the option, upon payment of a
premium, the right to sell, and the issuer of the option the
obligation to buy, the underlying security, commodity, index,
currency or other instrument at the exercise price. A call option,
upon payment of a premium, gives the purchaser of the option the
right to buy, and the issuer the obligation to sell, the underlying
instrument at the exercise price.
Purchasing a put option tends to decrease a Fund's exposure to the
underlying instrument, whereas purchasing a call option tends to
increase a Fund's exposure to the underlying instrument. A Fund
pays a premium which is included in the Statement of Assets and
Liabilities as an investment and subsequently marked to market to
reflect the current value of the option. Premiums paid to purchase
options which expire are treated as realized losses. Premiums paid
to purchase options which are exercised or closed are added to the
cost of securities acquired or the proceeds from securities sold.
The risk associated with purchasing put and call options is limited
to the premium paid.
The Funds will realize a loss equal to all or a part of the premium
paid for an option if the price of the underlying security or other
instrument decreases or does not increase by more than the premium
(in the case of a call option), or if the price of the underlying
security or other instrument increases or does not decrease by more
than the premium (in the case of a put option).
169
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) June 30, 2010
Writing a put option tends to increase a Fund's exposure to the
underlying instrument, whereas writing a call option tends to
decrease a Fund's exposure to the underlying instrument. The
premium received is recorded as liability in the Statement of
Assets and Liabilities and subsequently marked to market to reflect
the current value of the option written. Premiums received from
writing options which expire are treated as realized gains.
Premiums received from options which are exercised or closed are
added to the proceeds or offset against amounts paid on the
underlying transaction to determine the realized gain or loss.
Written options include a risk of loss in excess of the option
premium. A Fund as a writer of an option has no control over
whether the underlying instrument may be sold (call) or purchased
(put) and thus bears the market risk of an unfavorable change in
the price of the instrument underlying the written option. There is
the risk a Fund may not be able to enter into a closing transaction
because of an illiquid market.
A Fund's ability to close out its position as a purchaser or seller
of a put or call option is dependent, in part, upon the liquidity
of the market for that particular option. There can be no guarantee
that a fund will be able to close out an option position when
desired. An inability to close out its options positions may reduce
a Fund's anticipated profits or increase its losses.
As of June 30, 2010, portfolio securities valued at $19,272,000 and
$332,300 were held in escrow by the custodian as cover for call
options written for the Global Resources Fund and Gold and Precious
Metals Fund, respectively.
Transactions in written call options during the year ended June 30,
2010, were as follows:
ALL AMERICAN HOLMES
EQUITY FUND GROWTH FUND
-------------------------- ------------------------
NUMBER OF PREMIUMS NUMBER OF PREMIUMS
CONTRACTS RECEIVED CONTRACTS RECEIVED
Options outstanding at December 31, 2009 16 $ 3,488 36 $ 7,848
Options written 55 51,804 853 317,025
Options closed (40) (41,199) (573) (227,016)
Options expired (31) (14,093) (66) (29,058)
Options exercised -- -- -- --
------ ---------- ------- ------------
Options outstanding at June 30, 2010 -- $ -- 250 $ 68,799
====== ========== ======= ============
GLOBAL GLOBAL
MEGATRENDS FUND RESOURCES FUND
-------------------------- ------------------------
NUMBER OF PREMIUMS NUMBER OF PREMIUMS
CONTRACTS RECEIVED CONTRACTS RECEIVED
Options outstanding at December 31, 2009 -- $ -- 2,000 $ 727,981
Options written 50 18,945 8,900 1,908,838
Options closed (50) (18,945) (7,150) (1,973,520)
Options expired -- -- -- --
Options exercised -- -- -- --
------ ---------- ------- ------------
Options outstanding at June 30, 2010 -- $ -- 3,750 $ 663,299
====== ========== ======= ============
170
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) June 30, 2010
WORLD PRECIOUS GOLD AND PRECIOUS
MINERALS FUND METALS FUND
-------------------------- ------------------------
NUMBER OF PREMIUMS NUMBER OF PREMIUMS
CONTRACTS RECEIVED CONTRACTS RECEIVED
Options outstanding at December 31, 2009 -- $ -- -- $ --
Options written 3,440 262,200 1,960 153,992
Options closed (891) (68,878) (1,159) (92,984)
Options expired (2,099) (160,234) (351) (19,323)
Options exercised (450) (33,088) (350) (25,735)
------ ---------- ------- ------------
Options outstanding at June 30, 2010 -- $ -- 100 $ 15,950
====== ========== ======= ============
GLOBAL EMERGING CHINA
MARKETS FUND REGION FUND
-------------------------- ------------------------
NUMBER OF PREMIUMS NUMBER OF PREMIUMS
CONTRACTS RECEIVED CONTRACTS RECEIVED
Options outstanding at December 31, 2009 -- $ -- -- $ --
Options written 30 3,489 200 23,260
Options closed (30) (3,489) (200) (23,260)
Options expired -- -- -- --
Options exercised -- -- -- --
------ ---------- ------- ------------
Options outstanding at June 30, 2010 -- $ -- -- $ --
====== ========== ======= ============
B. FORWARD FOREIGN CURRENCY CONTRACTS
The Funds 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. 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 June 30,
2010.
171
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) June 30, 2010
C. SUMMARY OF DERIVATIVE INSTRUMENTS
The following is a summary of the valuations of derivative
instruments categorized by location in the Statement of Assets and
Liabilities as of June 30, 2010:
ALL
AMERICAN HOLMES GLOBAL GLOBAL
EQUITY GROWTH MEGATRENDS RESOURCES
LOCATION FUND FUND FUND FUND
---------------------------------------------------------------------------------------------------
ASSET DERIVATIVES
Investments, at value
Equity contracts - Note 2 A $ 148,125 $ 400,772 $ 111,000 $ 3,475,454
----------------------------------------------------
TOTAL 148,125 400,772 111,000 3,475,454
----------------------------------------------------
LIABILITY DERIVATIVES
Written options at value
Equity contracts - Note 2 A $ -- $ 64,000 $ -- $ 217,500
----------------------------------------------------
TOTAL $ -- $ 64,000 $ -- $ 217,500
----------------------------------------------------
WORLD GLOBAL
PRECIOUS GOLD & EASTERN EMERGING CHINA
MINERALS PRECIOUS EUROPEAN MARKETS REGION
LOCATION FUND METALS FUND FUND FUND FUND
--------------------------------------------------------------------------------------------------------------
ASSET DERIVATIVES
Investments, at value
Equity contracts - Note 2 A $ 180,772 $ -- $2,325,000 $ 61,050 $103,950
---------------------------------------------------------------
TOTAL 180,772 -- 2,325,000 61,050 103,950
---------------------------------------------------------------
LIABILITY DERIVATIVES
Written options at value
Equity contracts - Note 2 A $ -- $ 6,000 $ -- $ -- $ --
---------------------------------------------------------------
TOTAL $ -- $ 6,000 $ -- $ -- $ --
172
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) June 30, 2010
The following is a summary of the effect of derivative instruments
on the Statement of Operations for the six-month period ended June 30,
2010:
ALL
AMERICAN HOLMES GLOBAL GLOBAL
EQUITY GROWTH MEGATRENDS RESOURCES
LOCATION FUND FUND FUND FUND
---------------------------------------------------------------------------------------------------
REALIZED GAIN/(LOSS) ON DERIVATIVES
RECOGNIZED IN INCOME
Realized gain (loss) from securities
Equity contracts $ (40,864) $ 196,723 $ 17,368 $(1,696,573)
Realized gain (loss) on written options
Equity contracts 16,252 (19,931) 13,370 (157,855)
Net realized gain (loss) on foreign currency
transactions
Foreign exchange contracts -- -- -- --
----------------------------------------------------
(24,612) 176,792 30,738 (1,854,428)
----------------------------------------------------
CHANGE IN UNREALIZED APPRECIATION/
(DEPRECIATION) ON DERIVATIVES RECOGNIZED IN
INCOME
Net change in unrealized appreciation
(depreciation) on investments
Equity contracts 15,979 (11,658) (14,499) 1,281,702
Net change in unrealized appreciation
(depreciation) on options written
Equity contracts 672 6,311 -- 356,318
Net change in unrealized appreciation
(depreciation) on translation of assets and
liabilities denominated in foreign
currencies
Foreign exchange contracts -- -- -- --
----------------------------------------------------
16,651 (5,347) (14,499) 1,638,020
----------------------------------------------------
TOTAL $ (7,961) $ 171,445 $ 16,239 $ (216,408)
----------------------------------------------------
173
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) June 30, 2010
WORLD GOLD & GLOBAL
PRECIOUS PRECIOUS EASTERN EMERGING CHINA
MINERALS METALS EUROPEAN MARKETS REGION
LOCATION FUND FUND FUND FUND FUND
--------------------------------------------------------------------------------------------------------------
REALIZED GAIN/(LOSS) ON DERIVATIVES
RECOGNIZED IN INCOME
Realized gain (loss) from securities
Equity contracts $(4,633,479) $(1,118,557) $ 275,271 $ 13,606 $(49,282)
Realized gain on written options
Equity contracts 210,890 62,961 -- 6,463 22,204
Net realized gain (loss) on foreign currency
transactions
Foreign exchange contracts -- -- -- -- --
---------------------------------------------------------------
(4,422,589) (1,055,596) 275,271 20,069 (27,078)
---------------------------------------------------------------
CHANGE IN UNREALIZED APPRECIATION/
(DEPRECIATION) ON DERIVATIVES RECOGNIZED IN
INCOME
Net change in unrealized appreciation
(depreciation) on investments
Equity contracts 1,880,449 821,995 (156,860) (9,296) 148
Net change in unrealized appreciation
(depreciation) on options written
Equity contracts -- 9,950 -- -- --
Net change in unrealized appreciation
(depreciation) on translation of assets and
liabilities denominated in foreign
currencies
Foreign exchange contracts 12 -- -- -- --
---------------------------------------------------------------
1,880,461 831,945 (156,860) (9,296) 148
---------------------------------------------------------------
TOTAL $(2,542,128) $ (223,651) $ 118,411 $ 10,773 $(26,930)
---------------------------------------------------------------
The average notional amounts of written options, purchasd options
and forward currency contracts outstanding during the six-month
period ended June 30, 2010, were approximately as follows:
FORWARDS
WRITTEN PURCHASED CURRENCY
OPTIONS OPTIONS CONTRACTS
--------------------------------------------------------------------------------
All American Equity Fund $ 1,767 $ 52,808 $ --
Holmes Growth Fund 41,302 102,558 --
Global MegaTrends Fund -- 28,078 --
Global Resources Fund 351,827 1,496,397 50,885
World Precious Minerals Fund 54,979 3,741,803 13,657
Gold & Precious Metals Fund 23,075 1,519,941 4,537
Eastern European Fund -- 525,435 5
Global Emerging Markets Fund 1,680 15,280 --
China Region Fund 7,723 33,578 --
NOTE 3: RELATED PARTY TRANSACTIONS
U.S. Global Investors, Inc. (Adviser), under an investment advisory
agreement with the Trust in effect through September 30, 2011,
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
174
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) June 30, 2010
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.
For the services of the Adviser, each Fund pays a base management or
advisory 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
------------------------------------------------------------------------------
U.S. Treasury Securities Cash and .50% of the first $250,000,000 and
U.S. Government Securities Savings .375% of the excess
Near-Term Tax Free 0.50%
Tax Free .75% of the first $250,000,000 and
.50% of the excess
All American Equity .80% of the first $500,000,000 and
.75% of the excess
Holmes Growth and Global MegaTrends 1.00%
Global Resources .95% of the first $500,000,000;
.90% of $500,000,001 to $1,000,000,000
and .85% of the excess
World Precious Minerals 1.00% of the first $500,000,000;
.95% of $500,000,001 to $1,000,000,000
and .90% of the excess
Gold and Precious Metals .90% of the first $500,000,000 and
.85% of the excess
Eastern European 1.25%
Global Emerging Markets 1.375%
China Region 1.25%
175
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) June 30, 2010
The advisory agreement also provides, effective October 1, 2009,
that the base advisory fee of the Equity Funds will be adjusted
upwards or downwards by 0.25 percent if there is a performance
difference of 5 percent or more between a Fund's performance and
that of its designated benchmark index over the prior 12 months.
The performance adjustment is calculated separately for each share
class. For purposes of calculating the performance adjustment for
the Institutional Class, the performance will include the
performance of the Investor Class shares for periods prior to March
1, 2011. After such time, for purposes of calculating the
performance adjustment, the performance of each class will be
calculated based on its respective performance. The benchmarks are
as follows:
FUND BENCHMARK INDEX
-----------------------------------------------------------------------
All American Equity S&P 500 Index
Holmes Growth S&P Composite 1500 Index
Global MegaTrends S&P 500 Index
Global Resources Morgan Stanley Commodity Related
Equity Index
World Precious Minerals NYSE Arca Gold Miners Index
Gold and Precious Metals FTSE Gold Mines Index
Eastern European MSCI Emerging Markets Europe 10/40
Index (Net Total Return)
Global Emerging Markets MSCI Emerging Markets Total Net Return
Index
China Region Hang Seng Composite Index
No performance adjustment is applied unless the difference between
the class's investment performance and the benchmark is 5 percent
or greater (positive or negative) during the applicable performance
measurement period. The performance fee adjustment is calculated
monthly in arrears and is accrued ratably during the month. The
management fee, net of any performance fee adjustment, is paid
monthly in arrears.
176
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) June 30, 2010
The Funds' prospectus and statement of additional information
contain additional information about the performance adjustment.
The amounts shown as management fees on the Statements of
Operations reflects the base fee plus/minus any performance
adjustment. During the six months ended June 30, 2010, the Funds
recorded performance adjustments as follows:
INVESTOR CLASS INSTITUTIONAL CLASS
PERFORMANCE FEE PERFORMANCE FEE
FUND ADJUSTMENT ADJUSTMENT
--------------------------------------------------------------
All American Equity $ (19,520) N/A
Holmes Growth (44,457) N/A
Global MegaTrends (17,489) $ (4)
Global Resources 269,950 30
World Precious Minerals 673,952 3
Gold and Precious
Metals 273,295 N/A
Eastern European (502,310) N/A
Global Emerging Markets (15,257) N/A
China Region (52,565) N/A
Under an administrative services agreement, the U.S. Treasury
Securities Cash, U.S. Government Securities Savings, Near-Term Tax
Free, Tax Free, All American Equity, Holmes Growth, Gold and
Precious Metals, Eastern European, Global Emerging Markets and
China Region Funds compensate the Adviser at an annual rate of
0.08% of the average daily net assets of each Fund for
administrative services provided. The Global MegaTrends, Global
Resources and World Precious Minerals Funds compensate the Adviser
at an annual rate of 0.08% of the average daily net assets for the
Investor Class and 0.06% of the average daily net assets for the
Institutional Class for administrative services provided, of which
half is a fund-level fee and half is a class-level fee.
The Investor Class shares for Equity Funds in the Trust have
adopted a distribution plan pursuant to Rule 12b-1 of the
Investment Company Act of 1940 in which a subsidiary of the Adviser
is paid a fee at an annual rate of 0.25% of the average daily net
assets of the Investor Class for sales and promotional services
related to the distribution of Investor Class shares. The
Institutional Class does not incur distribution plan fees.
Effective October 1, 2009, the Adviser has voluntarily 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 June 30, 2010, were limited
as follows for the Investor Class: 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%, All
American Equity Fund at 2.20%, Holmes Growth Fund at 2.20%, Global
MegaTrends Fund at 2.35%,
177
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) June 30, 2010
Global Resources, World Precious Minerals, and Gold and Precious
Metals Funds at 1.90%, Eastern European Fund at 2.85%, Global
Emerging Markets Fund at 3.15% and China Region Fund at 2.55%.
These expense limitations are exclusive of any performance fee
adjustments and will continue on a voluntary basis at the Adviser's
discretion.
Effective March 1, 2010, the Adviser has agreed to waive all class
specific expenses for the Institutional Class. The expense waiver
is exclusive of performance fees, and the Adviser can modify or
terminate this arrangement at any time.
The Adviser has voluntarily agreed to waive fees and/or reimburse
U.S. Treasury Securities Cash Fund and U.S. Government Securities
Savings Fund to the extent necessary to maintain the respective
fund's yield at a certain level as determined by the Adviser
(Minimum Yield). The Adviser may recapture any fees waived and/or
expenses reimbursed within three years after the end of the fiscal
year of such waiver and/or reimbursement to the extent that such
recapture would not cause the fund's yield to fall below the
Minimum Yield. For the six months ended June 30, 2010, fees waived
and/or expenses reimbursed as a result of this agreement were
$458,074 and $349,127 for the U.S. Treasury Securities Cash Fund
and the U.S. Government Securities Savings Fund, respectively.
These amounts are recoverable by the Adviser through December 31,
2013. In addition, $170,642 is recoverable by the Adviser from the
U.S. Treasury Securities Cash Fund through December 31, 2011, and
$789,420 and $258,561 is recoverable by the Adviser from the U.S.
Treasury Securities Cash Fund and the U.S. Government Securities
Savings Fund, respectively, through December 31, 2012, for fees
waived and/or expenses reimbursed in previous fiscal years.
United Shareholder Services, Inc. (USSI), a wholly-owned subsidiary
of the Adviser, is the transfer agent for the Funds. Each Fund's
share class pays an annual fee based on the number of shareholder
accounts, certain base fees and transaction-and activity-based fees
for transfer agency services. Certain account fees are paid
directly by shareholders to the transfer agent, which, in turn,
reduces its charge to the Funds.
The Adviser was reimbursed for services of the Funds' Chief
Compliance Officer during the six months ended June 30, 2010, in
the amount of $87,666.
Brown Brothers Harriman & Co. (BBH) serves as the custodian, fund
accounting and administration service agent with a fee structure
based on average net assets of the Funds, certain base fees and
transaction-based fees. BBH voluntarily waived certain fund
accounting service fees for the six-month period ended December 31,
2009. This voluntary fee waiver ended December 31, 2009.
The independent Trustees receive compensation for serving on the
Board. Trustees serving as Chairman of the Board or a special
committee or as a member of a committee receive additional
compensation. Trustees are also reimbursed for out-
178
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) June 30, 2010
of-pocket expenses incurred while attending meetings. Frank E.
Holmes receives no compensation from the Funds for serving on the
Board.
NOTE 4: INVESTMENTS
Cost of purchases and proceeds from sales of long-term securities
for the six months ended June 30, 2010, are summarized as follows:
FUND PURCHASES SALES
----------------------------------------------------------------------
Near-Term Tax Free $ 3,554,797 $ 25,000
Tax Free 2,086,352 1,577,055
All American Equity 26,655,260 27,672,504
Holmes Growth 25,600,918 30,947,750
Global MegaTrends 9,551,520 15,184,726
Global Resources 465,761,963 618,073,087
World Precious Minerals 204,758,886 242,202,258
Gold and Precious Metals 121,206,302 131,774,528
Eastern European 145,855,470 200,107,904
Global Emerging Markets 10,184,509 11,674,375
China Region 51,689,354 60,269,413
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
June 30, 2010, were: 5.03% of All American Equity, 29.20% of Holmes
Growth, 65.75% of Global MegaTrends, 43.69% of Global Resources,
84.65% of World Precious Minerals, 81.78% of Gold and Precious
Metals, 91.41% of Eastern European, 87.09% of Global Emerging
Markets and 82.43% of China Region.
179
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) June 30, 2010
NOTE 5: TAX INFORMATION
The following table presents the income tax basis of securities
owned at June 30, 2010, and the tax basis components of net
unrealized appreciation (depreciation):
GROSS GROSS NET UNREALIZED
AGGREGATE UNREALIZED UNREALIZED APPRECIATION/
FUND TAX COST APPRECIATION DEPRECIATION (DEPRECIATION)
-----------------------------------------------------------------------------------------
U.S. Treasury Securities
Cash $125,275,460 $ -- $ -- $ --
U.S. Government Securities
Savings 228,312,616 -- -- --
Near-Term Tax Free 25,167,197 813,559 (30,380) 783,179
Tax Free 20,922,593 977,449 (287,416) 690,033
All American Equity 14,461,897 1,020,841 (795,143) 225,698
Holmes Growth 29,654,552 4,104,798 (1,341,779) 2,763,019
Global MegaTrends 18,304,901 1,583,408 (1,656,094) (72,686)
Global Resources 636,409,251 70,807,356 (117,588,799) (46,781,443)
World Precious Minerals 566,293,802 182,835,040 (129,229,331) 53,605,709
Gold and Precious Metals 188,954,192 54,900,227 (14,095,033) 40,805,194
Eastern European 323,900,334 64,562,282 (27,879,607) 36,682,675
Global Emerging Markets 11,107,758 1,191,164 (1,031,438) 159,726
China Region 40,225,420 6,092,774 (1,244,788) 4,847,986
As of December 31, 2009, 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 $ -- $ 829 $-- $ --
U.S. Government Securities
Savings -- 260,734 -- --
Near-Term Tax Free 9,817 11,658 -- 584,855
Tax Free 3,509 30,631 -- 480,198
All American Equity -- -- -- 2,433,624
Holmes Growth -- 456,807 -- 5,253,511
Global MegaTrends -- 35,372 -- 3,791,494
Global Resources -- 22,010,983 -- 19,391,505
World Precious Minerals -- 76,506,233 -- (62,607,300)
Gold and Precious Metals -- 4,005,264 -- 29,308,697
Eastern European -- -- -- 38,907,053
Global Emerging Markets -- -- -- 807,441
China Region -- -- -- 9,195,906
The differences between book-basis and tax-basis unrealized
appreciation (depreciation) for All American Equity, Holmes Growth,
Global MegaTrends, Global Resources, World Precious Minerals, Gold
and Precious Metals, Eastern European, Global Emerging Markets and
China Region Funds are attributable primarily to the tax deferral
of losses on wash sales, investment in passive foreign investment
companies (PFIC), forwards marked to markets, unreversed return of
180
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) June 30, 2010
capital in Canadian Trusts, adjustments for partnerships, tax
straddle loss deferrals on written options, and adjustments for
grantor trusts.
The tax character of distributions paid during the six months ended
June 30, 2010, were as follows:
TAX-EXEMPT ORDINARY LONG-TERM
FUND INCOME INCOME CAPITAL GAINS TOTAL
-----------------------------------------------------------------------------------------
U.S. Treasury Securities Cash $ -- $ 4,875 $-- $ 4,875
U.S. Government Securities
Savings -- 11,345 -- 11,345
Near-Term Tax Free 292,298 20,638 -- 312,936
Tax Free 371,666 22,496 -- 394,162
All American Equity -- -- -- --
Holmes Growth -- -- -- --
Global MegaTrends -- -- -- --
Global Resources -- -- -- --
World Precious Minerals -- -- -- --
Gold and Precious Metals -- -- -- --
Eastern European -- -- -- --
Global Emerging Markets -- -- -- --
China Region -- -- -- --
The tax character of distributions paid during the fiscal year
ended December 31, 2009, were as follows:
TAX-EXEMPT ORDINARY LONG-TERM
FUND INCOME INCOME CAPITAL GAINS TOTAL
-------------------------------------------------------------------------------------------
U.S. Treasury Securities Cash $ -- $ 10,436 $-- $ 10,436
U.S. Government Securities Savings -- 334,574 -- 334,574
Near-Term Tax Free 462,656 32,117 -- 494,773
Tax Free 677,673 38,269 -- 715,942
All American Equity -- 91,991 -- 91,991
Holmes Growth -- -- -- --
Global MegaTrends -- 86,578 -- 86,578
Global Resources -- -- -- --
World Precious Minerals -- 24,089,084 -- 24,089,084
Gold and Precious Metals -- 605,996 -- 605,996
Eastern European -- -- -- --
Global Emerging Markets -- -- -- --
China Region -- -- -- --
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
181
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) June 30, 2010
carryforwards and related expiration dates for each fund, as of
December 31, 2009, are as follows:
EXPIRATION DATE
---------------------------------------------
FUND 2010 2011 2012 2013 2014
---------------------------------------------------------------------------------------
U.S. Treasury Securities Cash $285 $ -- $ -- $ -- $ --
U.S. Government Securities Savings -- -- -- -- --
Near-Term Tax Free -- 46,218 33,686 2,760 202,719
Tax Free -- 88,733 421,236 -- --
All American Equity -- -- -- -- --
Holmes Growth -- -- -- -- --
Global MegaTrends -- -- -- -- --
Global Resources -- -- -- -- --
World Precious Minerals -- -- -- -- --
Gold and Precious Metals -- -- -- -- --
Eastern European -- -- -- -- --
Global Emerging Markets -- -- -- -- --
EXPIRATION DATE
-------------------------------------------------------
FUND 2015 2016 2017 TOTAL
-----------------------------------------------------------------------------------------
U.S. Treasury Securities Cash $ -- $ -- $ -- $ 285
U.S. Government Securities
Savings -- -- -- --
Near-Term Tax Free 2,488 112 722 288,705
Tax Free -- 10,697 -- 520,666
All American Equity -- 3,190,748 2,938,489 6,129,237
Holmes Growth 2,281,824 2,829,615 5,264,310 10,375,749
Global MegaTrends 8,605,703 5,994,166 995,675 15,595,544
Global Resources -- 174,185,267 313,190,635 487,375,902
World Precious Minerals -- 43,501,061 65,130,599 108,631,660
Gold and Precious Metals -- 18,761,278 2,765,666 21,526,944
Eastern European -- 83,605,572 257,523,539 341,129,111
Global Emerging Markets 4,262,898 2,965,929 5,814,949 13,043,776
China Region -- 24,409,458 -- 24,409,458
POST OCTOBER 31, 2009
FUND CAPITAL LOSS DEFERRAL
---------------------------------------------------
Tax Free $ 208
Holmes Growth 27,977
Global MegaTrends 413,260
World Precious Minerals 1,983,933
Eastern European 2,771,807
Global Emerging Markets 266,119
China Region 92,773
The above amounts, in accordance with tax rules, are deemed to have
occurred on January 1, 2010.
182
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) June 30, 2010
NOTE 6: RISKS OF CONCENTRATIONS
The Near-Term Tax Free Fund and the Tax Free Fund may be exposed to
risks related to concentration of investments in a particular state
or geographic area. These investments present risks resulting from
changes in economic conditions of the region or the issuer.
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.
The Eastern European and Global Emerging Markets Funds may be
exposed to risks not typically associated with investment in the
United States due to their concentration of investments in emerging
markets. These risks include possible revaluation of currencies,
less public information about companies, disruptive political or
economic conditions and the possible imposition of adverse
governmental laws or currency exchange restrictions. Moreover,
securities of many foreign issuers and their markets may be less
liquid and their prices more volatile than those securities of
comparable U.S. issuers.
The China Region 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.
NOTE 7: CREDIT ARRANGEMENTS
Each of the Funds, along with other funds under common management,
has a revolving credit facility with BBH. Borrowings of each Fund
are collateralized by any or all of the securities held by BBH as
the Fund's custodian up to the amount of the borrowing. 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 of borrowings by all 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 June 30, 2010. The U.S. Global Investors Funds paid BBH a
total of $22,625 in commitment fees for the six months ended June
30, 2010, under this arrangement.
183
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) June 30, 2010
NOTE 8: SHARES OF BENEFICIAL INTEREST
At June 30, 2010, individual shareholders holding more than 5% of
outstanding Investor Class shares comprised 14.26% of the Tax Free
Fund In addition, the Adviser held 11.11%, 5.84%, 7.56% of the
Investor Class shares of U.S. Government Securities Savings Fund,
Near-Term Tax Free Fund and Tax Free Fund, respectively. At June
30, 2010, an individual shareholder held 99.74% of the outstanding
Institutional Class shares of the Global Resources Fund, and the
Adviser held the remaining shares. The Adviser held 100.00% of the
Institutional Class shares of Global MegaTrends Fund and World
Precious Minerals Fund. Control is defined by the 1940 Act as the
beneficial ownership, either directly or through one or more
controlled companies, of more than 25% of the voting securities of
a company. Investment activities of these shareholders could have a
material impact on the Funds.
184
FINANCIAL HIGHLIGHTS
U.S. TREASURY SECURITIES CASH FUND
FOR A CAPITAL SHARE OUTSTANDING DURING THE
INVESTOR CLASS
------------------------------------------------------------------------------------
SIX MONTHS YEAR SIX MONTHS
ENDED ENDED ENDED YEAR ENDED JUNE 30,
JUNE 30, 2010 DECEMBER 31, DECEMBER 31, -------------------------------
(UNAUDITED) 2009 2008* 2008 2007 2006
NET ASSET VALUE, BEGINNING OF PERIOD $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
- --------------------------------------------------------------------------------------------------------------------------------
Investment Activities
Net investment income --(a) --(a) --(a) .02 .04 .03
Net realized and unrealized gain -- -- -- -- -- --
-------- -------- -------- -------- -------- --------
Total from investment activities --(a) --(a) --(a) .02 .04 .03
-------- -------- -------- -------- -------- --------
Distributions from net investment income --(a) --(a) --(a) (.02) (.04) (.03)
- --------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
- --------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN (excluding account fees) (b) -- .01% .23% 2.46% 4.36% 3.11%
Ratios to Average Net Assets: (c)
Net investment income .01% .01% .44% 2.43% 4.27% 3.06%
Total expenses 1.01% 1.01% 1.11% 1.09% .91% .92%
Expenses waived or reimbursed (d)(e) (.88)% (.75)% (.38)% (.09)% (.02)% --
Net recouped fees (e) -- -- -- --(g) -- .03%
Net expenses (f) .13% .26% .73% 1.00% .89% .95%
NET ASSETS, END OF PERIOD (IN THOUSANDS) $105,273 $103,889 $121,410 $111,955 $116,012 $119,028
<FN>
* Effective December 31, 2008, the fiscal year changed to
December 31.
(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 distribution
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 waived or 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. During the year ended June 30, 2008, the Adviser
waived fees and/or reimbursed expenses under the Minimum
Yield Agreement in the amount of $4,259. The Fund reimbursed
the Adviser the $4,259 during the year ended June 30, 2008.
During the six months ended December 31, 2008, the year
ended December 31, 2009, and the six months ended June 30,
2010, the Adviser waived fees and/or reimbursed expenses
under the Minimum Yield Agreement in the amount of $170,642,
$789,420 and $458,074, respectively.
(f) The net expense ratios shown above reflect expenses after
waivers and 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 effects of expenses offset
are as follows:
</FN>
INVESTOR CLASS
-----------------------------------------------------------------------------------
SIX MONTHS YEAR SIX MONTHS
ENDED ENDED ENDED YEAR ENDED JUNE 30,
JUNE 30, 2010 DECEMBER 31, DECEMBER 31, ------------------------------
(UNAUDITED) 2009 2008* 2008 2007 2006
Ratios to Average Net Assets (c):
Expenses offset (g) -- -- -- -- -- --
<FN>
(g) Effect on the expense ratio was not greater than 0.005%.
</FN>
See accompanying notes to financial statements.
185
FINANCIAL HIGHLIGHTS
U.S. GOVERNMENT SECURITIES SAVINGS FUND
FOR A CAPITAL SHARE OUTSTANDING DURING THE
INVESTOR CLASS
-------------------------------------------------------------------------------------
SIX MONTHS YEAR SIX MONTHS
ENDED ENDED ENDED YEAR ENDED JUNE 30,
JUNE 30, 2010 DECEMBER 31, DECEMBER 31, --------------------------------
(UNAUDITED) 2009 2008* 2008 2007 2006
NET ASSET VALUE, BEGINNING OF PERIOD $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
- ---------------------------------------------------------------------------------------------------------------------------------
Investment Activities
Net investment income --(a) --(a) .01 .03 .05 .04
Net realized and unrealized gain -- -- --(a) --(a) --(a) --
-------- -------- -------- -------- -------- --------
Total from investment activities --(a) --(a) .01 .03 .05 .04
-------- -------- -------- -------- -------- --------
Distributions from net investment income --(a) --(a) (.01) (.03) (.05) (.04)
- ---------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
- ---------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN (excluding account fees) (b) -- .10% .67% 3.47% 4.86% 3.69%
Ratios to Average Net Assets: (c)
Net investment income .01% .11% 1.36% 3.42% 4.75% 3.64%
Total expenses .83% .78% .73% .65% .62% .64%
Expenses waived or reimbursed (d) (.67)% (.42)% (.26)% (.20)% (.17)% (.19)%
Net expenses (e) .16% .36% .47%(g) .45% .45% .45%
NET ASSETS, END OF PERIOD (IN THOUSANDS) $228,242 $263,232 $357,910 $446,208 $469,095 $435,417
<FN>
* Effective December 31, 2008, the fiscal year changed to
December 31.
(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 waived or 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. During the
year ended December 31, 2009 and the six months ended June
30, 2010, the Adviser waived fees and/or reimbursed expenses
under the Minimum Yield Agreement in the amount of $258,561
and $349,127, respectively.
(e) The net expense ratios shown above reflect expenses after
waivers and 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>
INVESTOR CLASS
-----------------------------------------------------------------------------------
SIX MONTHS YEAR SIX MONTHS
ENDED ENDED ENDED YEAR ENDED JUNE 30,
JUNE 30, 2010 DECEMBER 31, DECEMBER 31, ------------------------------
(UNAUDITED) 2009 2008* 2008 2007 2006
Ratios to Average Net Assets (c):
Expenses offset (f) -- -- -- -- -- --
<FN>
(f) Effect on the expense ratio was not greater than 0.005%.
(g) The annualized net expense ratio for the six months ended
December 31, 2008, exceeded the limitation for the period
due to the cost of participating in the U.S. Treasury
Guarantee Program for the Money Market Funds. The cost to
participate was without regard to the expense limitation.
</FN>
See accompanying notes to financial statements.
186
FINANCIAL HIGHLIGHTS
NEAR-TERM TAX FREE FUND
FOR A CAPITAL SHARE OUTSTANDING DURING THE
INVESTOR CLASS
---------------------------------------------------------------------------------------
SIX MONTHS YEAR SIX MONTHS
ENDED ENDED ENDED YEAR ENDED JUNE 30,
JUNE 30, 2010 DECEMBER 31, DECEMBER 31, ----------------------------
(UNAUDITED) 2009 2008* 2008 2007 2006
NET ASSET VALUE, BEGINNING OF PERIOD $2.21 $2.16 $2.14 $2.12 $2.12 $2.17
- --------------------------------------------------------------------------------------------------------------------------------
Investment Activities
Net investment income .03 .06 .03 .07 .07 .07
Net realized and unrealized gain
(loss) .02 .05 .02 .02 --(a) (.05)
------- ------- ------- ------- ------- -------
Total from investment activities .05 .11 .05 .09 .07 .02
------- ------- ------- ------- ------- -------
Distributions from net investment
income (.03) (.06) (.03) (.07) (.07) (.07)
- --------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $2.23 $2.21 $2.16 $2.14 $2.12 $2.12
- --------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN (excluding account fees)(b) 2.18% 5.00% 2.55% 4.42% 3.51% .75%
Ratios to Average Net Assets: (c)
Net investment income 2.56% 2.63% 3.15% 3.41% 3.43% 3.08%
Total expenses 1.36% 1.53% 1.82% 1.91% 1.63% 1.54%
Expenses waived or reimbursed (d) (.91)% (1.08)% (1.37)% (1.46)% (1.18)% (1.09)%
Net expenses (e) .45% .45% .45% .45% .45% .45%
Portfolio turnover rate --(g) --(g) 8% 8% 22% 33%
NET ASSETS, END OF PERIOD (IN
THOUSANDS) $26,411 $23,337 $13,989 $13,603 $13,383 $15,830
<FN>
* Effective December 31, 2008, the fiscal year changed to
December 31.
(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 waived or 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
waivers and 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>
INVESTOR CLASS
--------------------------------------------------------------------------------------
SIX MONTHS YEAR SIX MONTHS
ENDED ENDED ENDED YEAR ENDED JUNE 30,
JUNE 30, 2010 DECEMBER 31, DECEMBER 31, ---------------------------
(UNAUDITED) 2009 2008* 2008 2007 2006
Ratios to Average Net Assets (c):
Expenses offset (f) -- -- -- -- -- --
<FN>
(f) Effect on the expense ratio was not greater than 0.005%.
(g) Portfolio turnover was not greater than 0.5%
</FN>
See accompanying notes to financial statements.
187
FINANCIAL HIGHLIGHTS
TAX FREE FUND
FOR A CAPITAL SHARE OUTSTANDING DURING THE
INVESTOR CLASS
---------------------------------------------------------------------------------------
SIX MONTHS YEAR SIX MONTHS
ENDED ENDED ENDED YEAR ENDED JUNE 30,
JUNE 30, 2010 DECEMBER 31, DECEMBER 31, ----------------------------
(UNAUDITED) 2009 2008* 2008 2007 2006
NET ASSET VALUE, BEGINNING OF PERIOD $12.20 $11.72 $11.93 $11.98 $11.98 $12.33
- --------------------------------------------------------------------------------------------------------------------------------
Investment Activities
Net investment income .22 .45 .23 .47 .50 .52
Net realized and unrealized gain
(loss) .13 .48 (.21) (.05) --(a) (.36)
------- ------- ------- ------- ------- -------
Total from investment activities .35 .93 .02 .42 .50 .16
------- ------- ------- ------- ------- -------
Distributions from net investment
income (.22) (.45) (.23) (.47) (.50) (.51)
- --------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $12.33 $12.20 $11.72 $11.93 $11.98 $11.98
- --------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN (excluding account fees) (b) 2.92% 8.03% .22% 3.54% 4.15% 1.30%
Ratios to Average Net Assets: (c)
Net investment income 3.67% 3.73% 3.92% 3.91% 4.09% 4.01%
Total expenses 1.66% 1.75% 1.91% 1.94% 1.86% 1.69%
Expenses waived or reimbursed (d) (.96)% (1.05)% (1.21)% (1.24)% (1.16)% (.99)%
Net expenses (e) .70% .70% .70% .70% .70% .70%
Portfolio turnover rate 8% --(g) 6% 11% 6% 19%
NET ASSETS, END OF PERIOD (IN
THOUSANDS) $22,136 $22,102 $16,946 $18,380 $15,940 $14,992
<FN>
* Effective December 31, 2008, the fiscal year changed to
December 31.
(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 waived or 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
waivers and 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>
INVESTOR CLASS
--------------------------------------------------------------------------------------
SIX MONTHS YEAR SIX MONTHS
ENDED ENDED ENDED YEAR ENDED JUNE 30,
JUNE 30, 2010 DECEMBER 31, DECEMBER 31, ---------------------------
(UNAUDITED) 2009 2008* 2008 2007 2006
Ratios to Average Net Assets (c):
Expenses offset (f) -- -- -- -- -- --
<FN>
(f) Effect on the expense ratio was not greater than 0.005%.
(g) Portfolio turnover was not greater than 0.5%
</FN>
See accompanying notes to financial statements.
188
FINANCIAL HIGHLIGHTS
ALL AMERICAN EQUITY FUND
FOR A CAPITAL SHARE OUTSTANDING DURING THE
INVESTOR CLASS
--------------------------------------------------------------------------------------
SIX MONTHS YEAR SIX MONTHS
ENDED ENDED ENDED YEAR ENDED JUNE 30,
JUNE 30, 2010 DECEMBER 31, DECEMBER 31, ---------------------------
(UNAUDITED) 2009 2008* 2008 2007 2006
NET ASSET VALUE, BEGINNING OF PERIOD $19.60 $17.33 $27.27 $28.58 $27.59 $24.47
- -------------------------------------------------------------------------------------------------------------------------------
Investment Activities
Net investment gain (loss) .02 (.13) .04 (.15) (.08) (.18)
Net realized and unrealized gain
(loss) (.84) 2.51 (9.97) 1.98 4.94 3.89
------- ------- ------- ------- ------- -------
Total from investment activities (.82) 2.38 (9.93) 1.83 4.86 3.71
------- ------- ------- ------- ------- -------
Distributions
From net investment income -- (.11) (.01) -- -- --
From net realized gains -- -- -- (3.01) (3.87) (.59)
From tax return of capital -- -- -- (.13) -- --
------- ------- ------- ------- ------- -------
Total distributions -- (.11) (.01) (3.14) (3.87) (.59)
------- ------- ------- ------- ------- -------
Short-Term Trading Fees**(a) -- -- -- -- -- --
- -------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $18.78 $19.60 $17.33 $27.27 $.28.58 $27.59
- -------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN (excluding account fees)
(b) (4.18)% 13.75% (36.42)% 5.99% 19.59% 15.25%
Ratios to Average Net Assets: (c)
Net investment income (loss) .15% (.74)% .35% (.55)% (.28)% (.67)%
Total expenses 2.49% 2.79% 2.37% 1.98% 2.01% 2.20%
Expenses waived or reimbursed (d) (.53)% (.96)% (.62)% (.23)% (.26)% (.44)%
Net expenses (e) 1.96% 1.83% 1.75% 1.75% 1.75% 1.76%
Portfolio turnover rate 186% 343% 205% 225% 223% 369%
NET ASSETS, END OF PERIOD (IN
THOUSANDS) $15,219 $16,436 $16,234 $26,513 $23,479 $21,547
<FN>
* Effective December 31, 2008, the fiscal year changed to
December 31.
** 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 distribution
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 waived or reimbursed reflect reductions to 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, as
applicable, had such reductions not occurred.
(e) The net expense ratios shown above reflect expenses after
waivers and 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, as applicable, had
such reductions not occurred. The effect of expenses offset
are as follows:
</FN>
INVESTOR CLASS
--------------------------------------------------------------------------------------
SIX MONTHS YEAR SIX MONTHS
ENDED ENDED ENDED YEAR ENDED JUNE 30,
JUNE 30, 2010 DECEMBER 31, DECEMBER 31, ---------------------------
(UNAUDITED) 2009 2008* 2008 2007 2006
Ratios to Average Net Assets (c):
Expenses offset (f) --(f) --(f) --(f) --(f) --(f) (0.01)%
<FN>
(f) Effect on the expense ratio was not greater than 0.005%.
</FN>
See accompanying notes to financial statements.
189
FINANCIAL HIGHLIGHTS
HOLMES GROWTH FUND
FOR A CAPITAL SHARE OUTSTANDING DURING THE
INVESTOR CLASS
------------------------------------------------------------------------------------------------
SIX MONTHS YEAR SIX MONTHS
ENDED ENDED ENDED YEAR ENDED OCTOBER 31,
JUNE 30, 2010 DECEMBER 31, DECEMBER 31, -------------------------------------
(UNAUDITED) 2009 2008* 2008 2007 2006 2005
NET ASSET VALUE, BEGINNING OF
PERIOD $15.54 $12.79 $14.14 $24.78 $18.34 $16.56 $14.38
- -------------------------------------------------------------------------------------------------------------------------------
Investment Activities
Net investment loss (.13) (.13) (.01) (.15) (.14) (.14) (.18)
Net realized and unrealized
gain (loss) (.18) 2.88 (1.34) (10.49) 6.58 1.92 2.36
------- ------- ------- ------- ------- ------- -------
Total from investment
activities (.31) 2.75 (1.35) (10.64) 6.44 1.78 2.18
------- ------- ------- ------- ------- ------- -------
Distributions -- -- -- -- -- -- --
Short-Term Trading Fees**(a) -- -- -- -- -- -- --
- -------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF
PERIOD $15.23 $15.54 $12.79 $14.14 $24.78 $18.34 $16.56
- -------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN (excluding
account fees) (b) (1.99)% 21.50% (9.55)% (42.94)% 35.11% 10.75% 15.16%
Ratios to Average Net Assets: (c)
Net investment loss (1.61)% (.93)% (.27)% (.65)% (.62)% (.69)% (.98)%
Total expenses 1.86% 2.10% 2.51% 1.74% 1.72% 1.74% 1.83%
Expenses waived or
reimbursed (d) --(f) (.33)% (.76)% -- -- -- --
Net expenses (e) 1.86% 1.77% 1.75% 1.74% 1.72% 1.74% 1.83%
Portfolio turnover rate 79% 219% 20% 140% 98% 290% 268%
NET ASSETS, END OF PERIOD (IN
THOUSANDS) $34,199 $37,149 $32,488 $36,231 $68,881 $61,810 $65,065
<FN>
* Effective December 31, 2008, the fiscal year changed to
December 31.
** 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 waived or reimbursed reflect reductions to 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, as
applicable, had such reductions not occurred.
(e) The net expense shown above reflect expenses after waivers
and 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, as applicable, had such reductions
not occurred. The effect of expenses offset are as follows:
</FN>
INVESTOR CLASS
---------------------------------------------------------------------------------------
SIX MONTHS YEAR SIX MONTHS
ENDED ENDED ENDED YEAR ENDED JUNE 30,
JUNE 30, 2010 DECEMBER 31, DECEMBER 31, -------------------------------------
(UNAUDITED) 2009 2008* 2008 2007 2006 2005
Ratios to Average Net Assets (c):
Expenses offset (f) --(f) --(f) --(f) --(f) --(f) (0.01)% --(f)
<FN>
(f) Effect on the expense ratio was not greater than 0.005%.
</FN>
See accompanying notes to financial statements.
190
FINANCIAL HIGHLIGHTS
GLOBAL MEGATRENDS FUND
FOR A CAPITAL SHARE OUTSTANDING DURING THE
INSTITUTIONAL
INVESTOR CLASS CLASS
------------------------------------------------------------------------------- --------------
SIX MONTHS YEAR SIX MONTHS PERIOD
ENDED ENDED ENDED YEAR ENDED OCTOBER 31, ENDED
JUNE 30, 2010 DECEMBER 31, DECEMBER 31, ------------------------------------- 6/30/2010(e)
(UNAUDITED) 2009 2008* 2008 2007** 2006 2005 (UNAUDITED)
NET ASSET VALUE, BEGINNING OF PERIOD $8.15 $6.28 $6.60 $12.75 $11.07 $10.30 $9.20 $7.89
- --------------------------------------------------------------------------------------------------------------------- --------------
Investment Activities
Net investment income (loss) .03 .03 --(a) --(a) (.11) (.10) (.14) .05
Net realized and unrealized gain
(loss) (.98) 1.86 (.31) (5.30) 2.63 1.18 1.24 (.73)
------- ------- ------- ------- ------- ------- ------- -------
Total from investment activities (.95) 1.89 (.31) (5.30) 2.52 1.08 1.10 (.68)
------- ------- ------- ------- ------- ------- ------- -------
Distributions
From net investment income -- (.02) -- -- -- -- -- --
From net realized gains -- -- -- (.85) (.84) (.31) -- --
From tax return of capital -- -- (.01) -- -- -- -- --
------- ------- ------- ------- ------- ------- ------- -------
Total distributions -- (.02) (.01) (.85) (.84) (.31) -- --
------- ------- ------- ------- ------- ------- ------- -------
Short-Term Trading Fees***(a) -- -- -- -- -- -- -- --
- --------------------------------------------------------------------------------------------------------------------- --------------
NET ASSET VALUE, END OF PERIOD $7.20 $8.15 $6.28 $6.60 $12.75 $11.07 $10.30 $7.21
- --------------------------------------------------------------------------------------------------------------------- --------------
TOTAL RETURN
(excluding account fees) (b) (11.66)% 30.15% (4.74)% (44.50)% 24.49% 10.53% 11.96% (8.09)%
Ratios to Average Net Assets: (c)
Net investment income (loss) .55% .45% (.20)% (.06)% (.93)% (.89)% (1.37)% 1.84%
Total expenses 2.37% 2.43% 2.96% 2.21% 2.49% 2.55% 2.83% 368.59%
Expenses waived or reimbursed (d) (.16)% (.48)% (1.11)% (.21)% -- -- -- (366.96)%
Net expenses (f) 2.21% 1.95% 1.85% 2.00% 2.49% 2.55% 2.83% 1.63%
Portfolio turnover rate (h) 44% 100% 29% 92% 65% 75% 54% 44%
NET ASSETS, END OF PERIOD (IN
THOUSANDS) $19,594 $28,557 $22,035 $25,387 $17,723 $17,077 $14,276 $9
<FN>
* Effective December 31, 2008, the fiscal year changed to
December 31.
** Effective October 1, 2007, U.S. Global Investors, Inc.
assumed management of Global MegaTrends Fund from the former
subadviser.
*** 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 waived or reimbursed reflect reductions to 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, as
applicable, had such reductions not occurred.
(e) From March 1, 2010, commencement of operations for the
Institutional Class.
(f) The expense ratios shown above exclude the effect of
reductions to total expenses for any expenses offset.
Expense offset arrangements reduce total expenses, as
discussed in the notes to financial statements. These
amounts would increase the net investment loss ratio, or
decrease the net investment income ratio, as applicable, had
such reductions not occurred. The effect of expenses offset
are as follows:
</FN>
INSTITUTIONAL
INVESTOR CLASS CLASS
------------------------------------------------------------------------------- -------------
SIX MONTHS YEAR SIX MONTHS PERIOD
ENDED ENDED ENDED YEAR ENDED OCTOBER 31, ENDED
JUNE 30, 2010 DECEMBER 31, DECEMBER 31, ------------------------------------- 6/30/2010(e)
(UNAUDITED) 2009 2008* 2008 2007 2006 2005 (UNAUDITED)
Ratios to Average Net Assets (c):
Expenses offset (g) -- -- -- -- -- -- -- --
<FN>
(g) Effect on the expense ratio was not greater than 0.005%.
(h) Portfolio turnover rate is calculated at the fund level.
</FN>
See accompanying notes to financial statements.
191
FINANCIAL HIGHLIGHTS
GLOBAL RESOURCES FUND
FOR A CAPITAL SHARE OUTSTANDING DURING THE
INSTITUTIONAL
INVESTOR CLASS CLASS
------------------------------------------------------------------------------ -------------
SIX MONTHS YEAR SIX MONTHS PERIOD
ENDED ENDED ENDED YEAR ENDED JUNE 30, ENDED
JUNE 30, 2010 DECEMBER 31, DECEMBER 31, ------------------------------------ 6/30/2010(e)
(UNAUDITED) 2009 2008* 2008 2007 2006 (UNAUDITED)
NET ASSET VALUE, BEGINNING OF
PERIOD $8.85 $5.26 $20.52 $17.70 $17.22 $12.67 $8.96
- ------------------------------------------------------------------------------------------------------------------- --------------
Investment Activities
Net investment income (loss) (.05) (.01) (.02)** .05** .21 .29 --(a)
Net realized and unrealized gain
(loss) (.51) 3.60 (13.92)** 5.86** 2.86 5.63 (.65)
-------- -------- -------- ---------- ---------- ---------- ------
Total from investment activities (.56) 3.59 (13.94) 5.91 3.07 5.92 (.65)
-------- -------- -------- ---------- ---------- ---------- ------
Distributions
From net investment income -- -- -- (.95) (.88) (.32) --
From net realized gains -- -- (1.32) (2.14) (1.71) (1.05) --
-------- -------- -------- ---------- ---------- ---------- ------
Total distributions -- -- (1.32) (3.09) (2.59) (1.37) --
-------- -------- -------- ---------- ---------- ---------- -------------
Short-Term Trading Fees**(a) -- -- -- -- -- -- --
- ------------------------------------------------------------------------------------------------------------------- -------------
NET ASSET VALUE, END OF PERIOD $8.29 $8.85 $5.26 $20.52 $17.70 $17.22 $8.31
- ------------------------------------------------------------------------------------------------------------------- -------------
TOTAL RETURN (excluding account
fees) (b) (6.33)% 68.25% (67.70)% 37.59% 20.94% 48.91% (6.27)%
Ratios to Average Net Assets: (c)
Net investment income (loss) (1.02)% (.08)% (.34)% .28% .74% 1.07% (.10)%
Total expenses 1.71% 1.64% 1.20% .88% .95% .96% 2.69%
Expenses waived or reimbursed (d) -- (.17)% (.12)% -- -- -- (1.57)%
Net expenses (f) 1.71% 1.47% 1.08% .88% .95% .96% 1.12%
Portfolio turnover rate (h) 72% 189% 100% 133% 122% 157% 72%
NET ASSETS, END OF PERIOD (IN
THOUSANDS) $624,221 $740,072 $464,524 $2,010,581 $1,383,250 $1,281,664 $3,646
<FN>
* Effective December 31, 2008, the fiscal year changed to
December 31.
** 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 waived or reimbursed reflect reductions to 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, as
applicable, had such reductions not occurred.
(e) From March 1, 2010, commencement of operations for the
Institutional Class.
(f) The net expense ratios shown above reflect expenses after
waivers and 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, as applicable, had
such reductions not occurred. The effect of expenses offset
are as follows:
</FN>
INSTITUTIONAL
INVESTOR CLASS CLASS
------------------------------------------------------------------------------- -------------
SIX MONTHS YEAR SIX MONTHS PERIOD
ENDED ENDED ENDED YEAR ENDED JUNE 30, ENDED
JUNE 30, 2010 DECEMBER 31, DECEMBER 31, ------------------------------------ 6/30/2010(e)
(UNAUDITED) 2009 2008* 2008 2007 2006 (UNAUDITED)
Ratios to Average Net Assets (c):
Expenses offset --(g) --(g) --(g) (0.01)% (0.01)% (0.01)% --
<FN>
(g) Effect on the expense ratio was not greater than 0.005%.
(h) Portfolio turnover rate is calculated at the fund level.
</FN>
See accompanying notes to financial statements.
192
FINANCIAL HIGHLIGHTS
WORLD PRECIOUS MINERALS FUND
FOR A CAPITAL SHARE OUTSTANDING DURING THE
INSTITUTIONAL
INVESTOR CLASS CLASS
------------------------------------------------------------------------- -------------
SIX MONTHS YEAR SIX MONTHS PERIOD
ENDED ENDED ENDED YEAR ENDED JUNE 30, ENDED
JUNE 30, 2010 DECEMBER 31, DECEMBER 31, ------------------------------ 6/30/2010(e)
(UNAUDITED) 2009 2008* 2008 2007 2006 (UNAUDITED)
NET ASSET VALUE, BEGINNING OF PERIOD $17.42 $9.56 $25.32 $28.34 $28.86 $15.50 $17.67
- ---------------------------------------------------------------------------------------------------------------- -------------
Investment Activities
Net investment income (loss) (.20) (.18) (.06)** (.13)** --** .72 (.06)
Net realized and unrealized gain
(loss) .70 8.71 (13.65)** 3.70** 3.02 13.62 .35
-------- -------- -------- -------- -------- -------- ---------
Total from investment activities .50 8.53 (13.71) 3.57 3.02 14.34 .29
-------- -------- -------- -------- -------- -------- ---------
Distributions
From net investment income -- (.67) -- (3.25) (1.52) (.67) --
From net realized gains -- -- (2.05) (3.35) (2.04) (.37) --
-------- -------- -------- -------- -------- -------- ---------
Total distributions -- (.67) (2.05) (6.60) (3.56) (1.04) --
-------- -------- -------- -------- -------- -------- ---------
Short-Term Trading Fees** --(a) --(a) --(a) .01 .02 .06 --
- ---------------------------------------------------------------------------------------------------------------- -------------
NET ASSET VALUE, END OF PERIOD $17.92 $17.42 $9.56 $25.32 $28.34 $28.86 $17.96
- ---------------------------------------------------------------------------------------------------------------- -------------
TOTAL RETURN (excluding account
fees) (b) 2.87% 89.50% (51.23)% 14.14% 11.48% 96.21% 3.46%
Ratios to Average Net Assets: (c)
Net investment income (loss) (1.71)% (1.32)% (.80)% (.43)% .06% .05% (1.05)%
Total expenses 1.87% 1.75% 1.36% .97% .99% 1.13% 347.98%
Expenses waived or reimbursed (d) -- (.17)% (.11)% -- -- -- (346.78)%
Net expenses (g) 1.87% 1.58% 1.25% .97% .99% 1.13% 1.20%
Portfolio turnover rate (h) 36% 72% 27% 58% 54% 66% 36%
NET ASSETS, END OF PERIOD (IN
THOUSANDS) $622,024 $639,035 $359,120 $949,014 $923,779 $920,249 $10
<FN>
* Effective December 31, 2008, the fiscal year changed to
December 31.
** 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 waived or reimbursed reflect reductions to 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, as
applicable, had such reductions not occurred.
(e) From March 1, 2010, commencement of operations for the
Institutional Class.
(f) The net expense ratios shown above reflect expenses after
waivers and 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, as applicable, had
such reductions not occurred. The effect of expenses offset
are as follows:
</FN>
INSTITUTIONAL
INVESTOR CLASS CLASS
----------------------------------------------------------------------------- -------------
SIX MONTHS YEAR SIX MONTHS PERIOD
ENDED ENDED ENDED YEAR ENDED JUNE 30, ENDED
JUNE 30, 2010 DECEMBER 31, DECEMBER 31, ------------------------------------ 6/30/2010(e)
(UNAUDITED) 2009 2008* 2008 2007 2006 (UNAUDITED)
Ratios to Average Net Assets (c):
Expenses offset(g) -- -- -- -- -- -- --
<FN>
(g) Effect on the expense ratio was not greater than 0.005%.
(h) Portfolio turnover rate is calculated at the fund level.
</FN>
See accompanying notes to financial statements.
193
FINANCIAL HIGHLIGHTS
GOLD AND PRECIOUS METALS FUND
FOR A CAPITAL SHARE OUTSTANDING DURING THE
INVESTOR CLASS
------------------------------------------------------------------------------------
SIX MONTHS YEAR SIX MONTHS
ENDED ENDED ENDED YEAR ENDED JUNE 30,
JUNE 30, 2010 DECEMBER 31, DECEMBER 31, -------------------------------
(UNAUDITED) 2009 2008* 2008 2007 2006
NET ASSET VALUE, BEGINNING OF PERIOD $15.46 $10.83 $17.18 $14.99 $15.48 $7.67
- --------------------------------------------------------------------------------------------------------------------------------
Investment Activities
Net investment income (loss) (.13) (.17)** (.03) (.08)** .05 (.01)**
Net realized and unrealized gain (loss) 1.25 4.84 (5.59) 4.69 (.56) 7.88
-------- -------- -------- -------- -------- --------
Total from investment activities 1.12 4.67 (5.62) 4.61 (.51) 7.87
-------- -------- -------- -------- -------- --------
Distributions
From net investment income -- (.04) -- -- -- (.12)
From net realized gains -- -- (.73) (2.43) -- --
-------- -------- -------- -------- -------- --------
Total distributions -- (.04) (.73) (2.43) -- (.12)
-------- -------- -------- -------- -------- --------
Short-Term Trading Fees** --(a) --(a) --(a) .01 .02 .06
- --------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $16.58 $15.46 $10.83 $17.18 $14.99 $15.48
- --------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN (excluding account fees) (b) 7.24% 43.11% (31.51)% 33.49% (3.17)% 104.15%
Ratios to Average Net Assets: (c)
Net investment income (loss) (1.60)% (1.16)% (.66)% (.41)% .31% (.06)%
Total expenses 1.89% 1.69% 1.54% 1.27% 1.29% 1.47%
Expenses waived or reimbursed (d) -- (.15)% (.15)% -- -- --
Net expenses (e) 1.89% 1.54% 1.39% 1.27% 1.29% 1.47%
Portfolio turnover rate 63% 135% 61% 93% 72% 78%
NET ASSETS, END OF PERIOD (IN THOUSANDS) $235,017 $234,393 $192,206 $259,022 $178,762 $208,027
<FN>
* Effective December 31, 2008, the fiscal year changed to
December 31.
** 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 waived or reimbursed reflect reductions to 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, as
applicable, had such reductions not occurred.
(e) The net expense ratios shown above reflect expenses after
waivers and 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, as applicable, had
such reductions not occurred. The effect of expenses offset
are as follows:
</FN>
INVESTOR CLASS
-----------------------------------------------------------------------------------
SIX MONTHS YEAR SIX MONTHS
ENDED ENDED ENDED YEAR ENDED JUNE 30,
JUNE 30, 2010 DECEMBER 31, DECEMBER 31, ------------------------------
(UNAUDITED) 2009 2008* 2008 2007 2006
Ratios to Average Net Assets (c):
Expenses offset --(f) --(f) --(f) --(f) (0.01)% --(f)
<FN>
(f) Effect on the expense ratio was not greater than 0.005%.
</FN>
See accompanying notes to financial statements.
194
FINANCIAL HIGHLIGHTS
EASTERN EUROPEAN FUND
FOR A CAPITAL SHARE OUTSTANDING DURING THE
INVESTOR CLASS
--------------------------------------------------------------------------------------------------
SIX MONTHS YEAR SIX MONTHS
ENDED ENDED ENDED YEAR ENDED OCTOBER 31,
JUNE 30, 2010 DECEMBER 31, DECEMBER 31, ---------------------------------------------------
(UNAUDITED) 2009 2008*/** 2008*** 2007*** 2006*** 2005***
NET ASSET VALUE, BEGINNING OF
PERIOD $9.11 $5.12 $6.35 $19.91 $15.44 $12.88 $9.47
- ------------------------------------------------------------------------------ ----------- ---------------------------------------
Investment Activities
Net investment income (loss) (.01) --(a) (.03) (.03) (.10) .13 (.03)****
Net realized and unrealized
gain (loss) (.93) 3.99 (1.20) (10.10) 6.83 3.60 3.81****
-------- -------- -------- -------- ---------- ---------- --------
Total from investment
activities (.94) 3.99 (1.23) (10.13) 6.73 3.73 3.78
-------- -------- -------- -------- ---------- ---------- --------
Distributions
From net investment income -- -- -- -- (.29) -- (.09)
From net realized gains -- -- -- (3.46) (1.98) (1.22) (.31)
-------- -------- -------- -------- ---------- ---------- --------
Total distributions -- -- -- (3.46) (2.27) (1.22) (.40)
-------- -------- -------- -------- ---------- ---------- --------
Short-Term Trading Fees**** --(a) --(a) --(a) .03 .01 .05 .03
- ------------------------------------------------------------------------------ ----------- ---------------------------------------
NET ASSET VALUE, END OF PERIOD $8.17 $9.11 $5.12 $6.35 $19.91 $15.44 $12.88
- ------------------------------------------------------------------------------ ----------- ---------------------------------------
TOTAL RETURN (excluding account
fees) (b) (10.32)% 77.93% (19.37)% (61.36)% 48.74% 31.03% 41.43%
Ratios to Average Net Assets: (c)
Net investment income (loss) (.24)% --(f) (3.02)% (.15)% (.61)% .71% (.31)%
Total expenses 1.87% 2.04% 2.37% 1.96% 1.98% 1.95% 2.00%
Expenses waived or
reimbursed (d) -- (.08)% (.27)% --(f) -- -- --
Net expenses (e) 1.87% 1.96% 2.10% 1.96% 1.98% 1.95% 2.00%
Portfolio turnover rate 39% 80% 11% 82% 54% 68% 95%
NET ASSETS, END OF PERIOD (IN
THOUSANDS) $371,876 $464,409 $317,320 $415,494 $1,582,707 $1,347,149 $903,855
<FN>
* Effective December 31, 2008, the fiscal year changed to
December 31.
** Effective November 7, 2008, U.S. Global Investors, Inc.
assumed management of the fund from Charlemagne Capital
(IOM) Limited.
*** The per share amounts shown were adjusted to reflect the
3-for-1 stock split which was effective on May 27, 2008.
**** 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 waived or reimbursed reflect reductions to 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, as
applicable, had such reductions not occurred.
(e) The expense ratios shown above exclude the effect of
reductions to total expenses for any expenses offset and for
fees rebated from the subadviser. Expense offset
arrangements reduce total expenses, as discussed in the
notes to the financial statements. Through June 2006, the
subadviser of the above fund provided advisory services to
two closed-end investment companies that the above fund had
invested in. The subadviser rebated amounts to the above
fund representing the portion of management fees paid by the
two investment companies to the subadviser based on the
above funds investment. Fees rebated by the subadviser also
reduced total expenses. These amounts would increase the net
investment loss ratio, or decrease the net investment income
ratio, as applicable, had such reductions not occurred. The
effect of expenses offset and expenses rebated by the
subadviser are as follows:
</FN>
INVESTOR CLASS
------------------------------------------------------------------------------------
SIX MONTHS YEAR SIX MONTHS
ENDED ENDED ENDED YEAR ENDED OCTOBER 31,
JUNE 30, 2010 DECEMBER 31, DECEMBER 31, -------------------------------------
(UNAUDITED) 2009 2008 2008 2007 2006 2005
Ratios to Average Net Assets (c):
Expenses offset --(f) --(f) --(f) (0.01)% (0.01)% (0.01)% (0.01)%
Expenses rebated by subadviser n/a n/a n/a n/a n/a (0.01)% (0.02)%
<FN>
(f) Effect on the expense ratio was not greater than 0.005%.
</FN>
See accompanying notes to financial statements.
195
FINANCIAL HIGHLIGHTS
GLOBAL EMERGING MARKETS FUND
FOR A CAPITAL SHARE OUTSTANDING DURING THE
INVESTOR CLASS
-------------------------------------------------------------------------------------------------
SIX MONTHS YEAR SIX MONTHS PERIOD
ENDED ENDED ENDED YEAR ENDED OCTOBER 31, ENDED
JUNE 30, 2010 DECEMBER 31, DECEMBER 31, ---------------------------- OCTOBER 31,
(UNAUDITED) 2009 2008*/** 2008 2007 2006 2005(a)
NET ASSET VALUE, BEGINNING
OF PERIOD $7.95 $5.29 $5.94 $21.88 $13.93 $10.65 $10.00
- --------------------------------------------------------------------------------------------------------------------------------
Investment Activities
Net investment income
(loss) (.06) (.05) (.01) (.43) (.13) .02 .06
Net realized and
unrealized gain (loss) (.41) 2.71 (.56) (11.98) 9.18 3.50 .56
------- ------- ------ ------- ------- ------- -------
Total from investment
activities (.47) 2.66 (.57) (12.41) 9.05 3.52 .62
------- ------- ------ ------- ------- ------- -------
Distributions
From net investment income -- -- -- (.46) -- (.05) --
From net realized gains -- -- -- (3.11) (1.13) (.26) --
From tax return of capital -- -- (.08) -- -- -- --
------- ------- ------ ------- ------- ------- -------
Total distributions -- -- (.08) (3.57) (1.13) (.31) --
------- ------- ------ ------- ------- ------- -------
Short-Term Trading Fees*** --(b) --(b) --(b) .04 .03 .07 .03
- --------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF
PERIOD $7.48 $7.95 $5.29 $5.94 $21.88 $13.93 $10.65
- --------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN (excluding
account fees) (c) (5.91)% 50.28% (9.59)% (66.81)% 69.52% 34.16% 6.50%
Ratios to Average Net
Assets: (d)
Net investment income
(loss) (1.29)% (.77)% (1.16)% (1.01)% (.92)% .13% 1.08%
Total expenses 3.66% 4.02% 6.83% 2.80% 2.75% 3.07% 4.16%
Expenses waived or
reimbursed (e) (.74)% (1.38)% (4.33)% (.30)% (.39)% (1.05)% (2.16)%
Net expenses (f) 2.92% 2.64% 2.50% 2.50% 2.36% 2.02% 2.00%
Portfolio turnover rate 87% 166% 21% 83% 125% 136% 93%
NET ASSETS, END OF PERIOD
(IN THOUSANDS) $11,761 $13,819 $9,663 $11,708 $59,621 $29,029 $16,157
<FN>
* Effective December 31, 2008, the fiscal year changed to
December 31.
** Effective November 7, 2008, U.S. Global Investors, Inc.
assumed management of the fund from Charlemagne Capital
(IOM) Limited.
*** Based on average monthly shares outstanding.
(a) From February 24, 2005, commencement of operations.
(b) The per share amount does not round to a full penny.
(c) 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.
(d) Ratios are annualized for periods of less than one year.
(e) Expenses waived or reimbursed reflect reductions to 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, as
applicable, had such reductions not occurred.
(f) The expense ratios shown above exclude the effect of
reductions to total expenses for any expenses offset and for
fees rebated from the subadviser. Expense offset
arrangements reduce total expenses, as discussed in the
notes to the financial statements. Through June 2006, the
subadviser of the above fund provided advisory services to a
closed-end investment company that the above fund had
invested in. The subadviser rebated amounts to the above
fund representing the portion of management fees paid by the
investment company to the subadviser based on the above
funds investment. Fees rebated by the subadviser also
reduced total expenses. These amounts would increase the net
investment loss ratio, or decrease the net investment income
ratio, as applicable, had such reductions not occurred. The
effect of expenses offset and expenses rebated by the
subadviser are as follows:
</FN>
INVESTOR CLASS
-------------------------------------------------------------------------------------------------
SIX MONTHS YEAR SIX MONTHS PERIOD
ENDED ENDED ENDED YEAR ENDED OCTOBER 31, ENDED
JUNE 30, 2010 DECEMBER 31, DECEMBER 31, --------------------------- OCTOBER 31,
(UNAUDITED) 2009 2008 2008 2007 2006 2005(a)
Ratios to Average Net Assets (d):
Expenses offset --(g) --(g) --(g) --(g) n/a n/a n/a
Expenses rebated by
subadviser n/a n/a n/a n/a n/a (0.02)% --(g)
<FN>
(g) Effect on the expense ratio was not greater than 0.005%.
</FN>
See accompanying notes to financial statements.
196
FINANCIAL HIGHLIGHTS
CHINA REGION FUND
FOR A CAPITAL SHARE OUTSTANDING DURING THE
INVESTOR CLASS
---------------------------------------------------------------------------------------
SIX MONTHS YEAR SIX MONTHS
ENDED ENDED ENDED YEAR ENDED JUNE 30,
JUNE 30, 2010 DECEMBER 31, DECEMBER 31, ----------------------------
(UNAUDITED) 2009 2008* 2008 2007 2006
NET ASSET VALUE, BEGINNING OF PERIOD $8.36 $5.59 $9.09 $12.55 $8.71 $6.87
- --------------------------------------------------------------------------------------------------------------------------------
Investment Activities
Net investment income (.05) (.05) (.02)** (.03)** --** (.01)
Net realized and unrealized gain
(loss) (.35) 2.81 (3.49)** (.27)** 3.98** 2.02
------- ------- ------- ------- ------- -------
Total from investment activities (.40) 2.76 (3.51) (.30) 3.98 2.01
------- ------- ------- ------- ------- -------
Distributions
From net investment income -- -- -- (.10) (.16) (.19)
From net realized gains -- -- -- (2.93) -- --
From tax return of capital -- -- -- (.17) -- --
------- ------- ------- ------- ------- -------
Total distributions -- -- -- (3.20) (.16) (.19)
------- ------- ------- ------- ------- -------
Short-Term Trading Fees** --(a) .01 .01 .04 .02 .02
- --------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $7.96 $8.36 $5.59 $9.09 $12.55 $8.71
- --------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN (excluding account fees)(b) (4.78)% 49.55% (38.50)% (8.58)% 46.34% 30.03%
Ratios to Average Net Assets: (c)
Net investment income (loss) (.99)% (.79)% (.47)% (.26)% .02% (.08)%
Total expenses 2.23% 2.47% 2.46% 1.95% 2.02% 2.31%
Expenses waived or reimbursed (d) --(f) (.45)% (.27)% -- -- --
Net expenses (e) 2.23% 2.02% 2.19% 1.95% 2.02% 2.31%
Portfolio turnover rate 116% 327% 117% 208% 208% 292%
NET ASSETS, END OF PERIOD (IN
THOUSANDS) $47,626 $56,323 $38,348 $81,109 $93,805 $67,761
<FN>
* Effective December 31, 2008, the fiscal year changed to
December 31.
** 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 waived or reimbursed reflect reductions to 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, as
applicable, had such reduction not occurred.
(e) The net expense ratios shown above reflect expenses after
waivers and 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, as applicable, had
such reductions not occurred. The effect of expenses offset
are as follows:
</FN>
INVESTOR CLASS
--------------------------------------------------------------------------------------
SIX MONTHS YEAR SIX MONTHS
ENDED ENDED ENDED YEAR ENDED JUNE 30,
JUNE 30, 2010 DECEMBER 31, DECEMBER 31, ---------------------------
(UNAUDITED) 2009 2008* 2008 2007 2006
Ratios to Average Net Assets (c):
Expenses offset --(f) --(f) --(f) --(f) --(f) (0.01)%
<FN>
(f) Effect on the expense ratio was not greater than 0.005%.
</FN>
See accompanying notes to financial statements.
197
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.
198
Rev. 08/2010
FACTS WHAT DOES U.S. GLOBAL INVESTORS
DO WITH YOUR PERSONAL INFORMATION?
==============================================================================
- ------------------------------------------------------------------------------
WHY? Financial companies choose how they share your personal information.
Federal law gives consumers the right to limit some but not all
sharing. Federal law also requires us to tell you how we collect,
share, and protect your personal information. Please read this notice
carefully to understand what we do.
- ------------------------------------------------------------------------------
- ------------------------------------------------------------------------------
WHAT? The types of personal information we collect and share depend on the
product or service you have with us. This information can include:
* Social Security number and account balances
* transaction history and checking account information
* account transactions and wire transfer instructions
When you are no longer our customer, we continue to share your
information as described in this notice.
- ------------------------------------------------------------------------------
- ------------------------------------------------------------------------------
HOW? All financial companies need to share customers' personal information
to run their everyday business. In the section below, we list the
reasons financial companies can share their customers' personal
information; the reasons U.S. Global Investors chooses to share; and
and whether you can limit this sharing.
- ------------------------------------------------------------------------------
- ------------------------------------------------------------------------------
REASONS WE CAN SHARE YOUR DOES U.S. GLOBAL CAN YOU LIMIT
PERSONAL INFORMATION INVESTORS SHARE? THIS SHARING?
- ------------------------------------------------------------------------------
FOR OUR EVERYDAY BUSINESS PURPOSES-- Yes No
such as to process your transactions,
maintain your account(s), respond to court
orders and legal investigations, or report
to credit bureaus
- ------------------------------------------------------------------------------
FOR OUR MARKETING PURPOSES-- Yes No
to offer our products and services to you
- ------------------------------------------------------------------------------
FOR JOINT MARKETING WITH OTHER No We don't share
FINANCIAL COMPANIES
- ------------------------------------------------------------------------------
FOR OUR AFFILIATES' EVERYDAY No We don't share
BUSINESS PURPOSES--
information about your transactions and
experiences
- ------------------------------------------------------------------------------
FOR OUR AFFILIATES' EVERYDAY No We don't share
BUSINESS PURPOSES--
information about your creditworthiness
- ------------------------------------------------------------------------------
FOR NONAFFILIATES TO MARKET TO YOU No We don't share
- ------------------------------------------------------------------------------
- ------------------------------------------------------------------------------
QUESTIONS? Call 1-800-US-Funds (1-800-873-8637) or go to www.usfunds.com
- ------------------------------------------------------------------------------
PAGE 2
==============================================================================
- ------------------------------------------------------------------------------
WHO WE ARE
- ------------------------------------------------------------------------------
WHO IS PROVIDING U.S. Global Investors, Inc., U.S. Global Investors Funds,
THIS NOTICE? United Shareholder Services, Inc., and U.S. Global
Brokerage, Inc. (collectively known as U.S. Global
Investors
- ------------------------------------------------------------------------------
WHAT WE DO
- ------------------------------------------------------------------------------
HOW DOES To protect your personal information from unauthorized
U.S. GLOBAL access and use, we use security measures that comply with
INVESTORS PROTECT federal law. These measures include computer safeguards
MY PERSONAL and secured files and buildings.
INFORMATION?
- ------------------------------------------------------------------------------
HOW DOES We collect your personal information, for example, when
U.S. GLOBAL you
INVESTORS COLLECT
MY PERSONAL *open an account or buy securities from us
INFORMATION *direct us to sell your securities or give us your
contact information
*tell us where to send the money
- ------------------------------------------------------------------------------
WHY CAN'T I LIMIT Federal law gives you the right to limit only
ALL SHARING?
*sharing for affiliates' everyday business purposes--
information about your creditworthiness
*affiliates from using your information to market to you
*sharing for nonaffiliates to market to you
State laws and individual companies may give you
additional rights to limit sharing
- ------------------------------------------------------------------------------
- ------------------------------------------------------------------------------
DEFINITIONS
- ------------------------------------------------------------------------------
AFFILIATES Companies related by common ownership or control. They can
be financial and nonfinancial companies.
*Our affiliates include U.S. Global Investors, Inc., U.S.
Global Investors Funds, United Shareholder Services,
Inc., and U.S. Global Brokerage, Inc.
- ------------------------------------------------------------------------------
NONAFFILIATES Companies not related by common ownership or control. They
can be financial and nonfinancial companies.
*Nonaffiliates we share personal information with include
companies that perform marketing on our behalf, printing
and mailing companies, and companies that service your
account(s)
- ------------------------------------------------------------------------------
JOINT MARKETING A formal agreement between nonaffiliated financial
companies that together market financial products or
services to you.
*U.S. Global Investors doesn't jointly market.
- ------------------------------------------------------------------------------
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 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 (17CFR 270.30a-2(b)) and 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: August 30, 2010
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: August 30, 2010
By: /s/ Catherine A. Rademacher
-----------------------------------------------------
Catherine A. Rademacher
Treasurer
Date: August 30, 2010