SEC Info - US Global Accolade Funds

SEC Info℠

Home

Help

Please Sign In

US Global Accolade Funds – ‘497’ on 7/2/97

As of: Wednesday, 7/2/97 · Accession #: 902042-97-40 · File #: 33-61542

  As Of                Filer                Filing    For·On·As Docs:Size

 7/02/97  US Global Accolade Funds          497                    1:29K

Definitive Material — Rule 497
Filing Table of Contents

Document/Exhibit                   Description                      Pages   Size 

 1: 497         A-Day/Eastern European Semi-Annual Report             18     55K

Document Table of Contents

Page	(sequential)	\|	(alphabetic)	Top
			Alternative Formats (Word, et al.) Financial Highlights Regent Eastern European Fund Statements of Changes in Net Assets Statements of Operations
1	1st Page - Filing Submission
6	Regent Eastern European Fund
12	Statements of Operations
13	Statements of Changes in Net Assets
18	Financial Highlights

497 1st Page of 18 TOC ↑Top Previous Next ↓Bottom Just 1st
 
[GRAPHIC:  PICTURE OF A COMPASS]                                                

ADRIAN DAY GLOBAL OPPORTUNITY FUND                                              
REGENT EASTERN EUROPEAN FUND                                                    

--------------------------------- 
 Semi-Annual Report April 30, 1997
--------------------------------- 

497 2nd Page of 18 TOC 1st Previous Next ↓Bottom Just 2nd
U.S. Global Investors                                                           

--------------------------------------
Adrian Day Global Opportunity Fund and
Regent Eastern European Fund

Semi-Annual Report
--------------------------------------

April 30, 1997                                                                  
(UNAUDITED)                                                                     

--------------------------------------------------------------------------------
Table of Contents                                                               
--------------------------------------------------------------------------------
Letter to Shareholders ....................................................    1
Investment Manager Perspective                                                  
   Adrian Day Global Opportunity Fund .....................................    2
   Regent Eastern European Fund ...........................................    4
Portfolio of Investments                                                        
   Adrian Day Global Opportunity Fund .....................................    6
   Regent Eastern European Fund ...........................................    8
Statements of Assets and Liabilities ......................................    9
Statements of Operations ..................................................   10
Statements of Changes in Net Assets .......................................   11
Notes to Financial Statements .............................................   12
Financial Highlights ......................................................   16

----------                                                                      
For more  information,  including charges and expenses,  call  1-800-US-FUNDS or
visit us on the Web at  www.usfunds.com.  Please read the  prospectus  carefully
before investing;  it details the special risks,  including political,  currency
and economic  risks,  of investing in emerging  markets.  U.S. stands for United
Services. Past performance is no guarantee of future results. Investment returns
and principal  will  fluctuate so that you may have a gain or loss when you sell
shares.                                                                         

Must be preceded or accompanied by a current prospectus.                        

497 3rd Page of 18 TOC 1st Previous Next ↓Bottom Just 3rd
                               [GRAPHIC:  Photo of Frand Holmes, Chairman & CEO]

Dear Shareholder,                                                               

Thank you for your investment in the newest of U.S. Global  Investors' funds. We
are pleased to bring you the opportunity to invest with the renowned  investment
advisor Adrian Day and with Regent Pacific Fund Management,  a leading portfolio
investor in Russia.                                                             

On the  following  pages,  you can read more about the market  insights of these
fund managers.  I want to share with you another way to enhance your  experience
in either or both of these funds.                                               

First,  invest early and often. Both of these funds are aiming to take advantage
of a single basic principle in the global markets today: developing markets have
more growth potential than developed ones. While there can be no guarantees,  by
increasing your investment in these funds today,  you stand a greater chance for
maximum growth of capital over the long term.                                   

Second, by using the ABC Investment  Plan(R),  our automatic monthly  investment
program,  you can ease into the funds over time and reduce the  average  cost of
your shares. By making regular monthly investments, you buy shares regardless of
their  price,  while by making a lump sum  investment,  you are locked  into one
price, which may be relatively high.                                            

Of  course,  no system can  guarantee  you a profit.  If you sell at bottom,  no
system will give you a gain.  Yet by using the plan, you can better balance risk
and  reward in the  Regent  Eastern  European  Fund and the  Adrian  Day  Global
Opportunity  Fund.  Don't  try  to  outguess  an  unpredictable   market.   Call
1-800-873-8637 today for an ABC Investment Plan(R) application form.            

Sincerely yours,                                                                

/s/Frank Holmes                                                                 

Frank Holmes                                                                    
Chairman & CEO                                                                  

P.S. All of our funds are  available for IRA accounts.  Call  1-800-US-FUNDS  or
1-800-873-8637  today  for an  IRA  investment  guide  and  application.  If you
transfer $10,000 or more to an IRA account, we will waive the annual IRA fee for
the life of your account.                                                       

                                                                               1

497 4th Page of 18 TOC 1st Previous Next ↓Bottom Just 4th
ADRIAN DAY GLOBAL OPPORTUNITY FUND                                              
SEMI-ANNUAL REPORT FOR THE PERIOD ENDED APRIL 30,  1997                         

Thank you for being a premier investor in the new Adrian Day Global  Opportunity
Fund.  As you know,  the Fund opened only a few months ago,  and I am excited to
offer you this ground-floor opportunity to invest in the global markets with me.

The  long-term  outlook is good for many global  markets and for the Fund.  As I
invest the new assets of the Fund, I am holding a high position in cash in order
to be able to buy  stocks  at low  prices,  since I am  cautious  about the high
valuations in many markets.                                                     

Growth at a reasonable price is a central tenet of the Fund, which is why I have
chosen not to rush into the markets rashly. Much of the cash in the Fund is very
new,  and I want to  invest  it  carefully  to  reduce  the  risk of  short-term
volatility in the markets. As a value investor,  I am not looking for short-term
gains, yet I do want to reduce the risk to your long-term investment.           

As I look globally for blue-chip and emerging companies, I am finding many solid
opportunities.  Several  of these  come in  emerging  markets  such as Korea and
Thailand.  Because they have high dollar-denominated  debt, countries like these
are benefiting  from a weakening in the U.S.  dollar  against the yen.  Currency
problems in Europe,  on the other hand, have made it difficult to justify buying
many of their expensive securities.  And Japan remains unattractive in the short
term,  since  valuations which may be reasonable on an asset basis are high on a
price-to-earnings basis. If Japan can generate a sustained upturn in earnings, I
will consider taking a position in my favorite Japanese stocks.                 

Thank you again for trusting me with your  investment.  I look forward to a long
and rewarding relationship with you.                                            

/s/ Adrian Day                                                                  

Adrian Day                                                                      
Portfolio Manager                                                               

2                                                                               

497 5th Page of 18 TOC 1st Previous Next ↓Bottom Just 5th
Geographic Diversification of Equity Holdings                                   

(PIE CHART PLOTTED FROM DATA IN TABLE BELOW)                                    

                                                                [Download Table]


Country of Listing                         Current Market Value     % of Current
                                                                    Market Value

                                                                                
Argentina ..........................         $     7,000.00            1.39%    
Canada .............................         $   129,235.75           25.75%    
Chile ..............................         $    46,900.00            9.34%    
Hong Kong ..........................         $    27,750.00            5.53%    
Luxembourg .........................         $    22,250.00            4.43%    
New Zealand ........................         $    49,079.00            9.78%    
S. Korea ...........................         $    34,835.25            6.94%    
Thailand ...........................         $    19,315.40            3.85%    
U.K ................................         $    31,375.00            6.25%    
U.S ................................         $   134,187.50           26.73%    
Total ..............................         $   501,927.90          100.00%    


--------------------------------------------------------------------------------
Top 10 Holdings Based on Total Investments
--------------------------------------------------------------------------------
Brierley Investment, Ltd.                                   3.84%               
................................................................................
Newmont Mining Corp.                                        3.33%               
................................................................................
Enersis S.A. (ADR)                                          2.96%               
................................................................................
The Energy Group PLC (ADR)                                  2.93%               
................................................................................
Pan-American Silver Corp.                                   2.72%               
................................................................................
Freeport Copper & Gold (Preferred)                          2.51%               
................................................................................
Euro-Nevada Mining Corp.                                    2.50%               
................................................................................
The Singer Co., N.V                                         2.48%               
................................................................................
PLD Telekom, Inc.                                           2.48%               
................................................................................
AirTouch Communications, Inc.                               2.41%               
--------------------------------------------------------------------------------

                                                                               3

497 6th Page of 18 TOC 1st Previous Next ↓Bottom Just 6th
REGENT EASTERN EUROPEAN FUND                                                    
SEMI-ANNUAL REPORT FOR THE PERIOD ENDED APRIL 30, 1997                          

Thank you for choosing the Regent  Eastern  European  Fund. I believe this is an
exciting  time to invest in Russia and  Eastern  Europe,  since it appears to me
that the reforms of the  post-communist era are irreversible and economic growth
is likely to increase.                                                          

The  largest  country  within  the Fund's  investment  scope,  Russia  stands an
excellent chance for a substantial  increase in foreign investment this year and
in 1998.  While last year the annual net  outflow of capital was  considered  by
market  insiders  to be $20  billion,  to date a net $5 billion of new money has
come into the Russian bond market.  Foreign  investment in Russian stocks and in
capital assets themselves have also risen sharply.                              

The entry of new money into the market makes Russia a more attractive investment
for us, since it can help increase the  liquidity of some of our  holdings.  Two
leading clearing and depository  agencies  recently  announced a plan to build a
unified  depository  system,  which will make trading more efficient and further
encourage foreign investors to join us in Russia.                               

We are also  pleased  by events in the  "Visegrad  Four"--  the Czech  Republic,
Hungary,  Poland and  Slovakia.  These  countries  are furthest  away from their
communist past. Reforms have progressed so far and so well that we believe these
four  nations  are now past the stage of highest  risk.  Their  highly  educated
workforces and their traditionally strong manufacturing bases have helped create
a stable economic  environment  with relatively low inflation,  solid currencies
and sound fiscal policy.                                                        

As we continue to invest the Fund's  assets into these  countries,  we will look
for  those  companies  which  offer  excellent  long-term  growth  prospects  at
favorable market  valuations and acceptable levels of risk. The special emerging
market risks of investing in Eastern Europe are still  present,  and that is why
we  recommend  you build  your  position  in our fund  over  time  using the ABC
Investment Plan(R).                                                             

Again, thank you for your investment in the Regent Eastern European Fund.       

/s/P.D. Evernington                                                             

Peter Everington                                                                
Investment Strategist                                                           

4                                                                               

497 7th Page of 18 TOC 1st Previous Next ↓Bottom Just 7th
REGENT EASTERN EUROPEAN FUND                                                    

SECTOR DIVERSIFICATION OF EQUITY HOLDINGS                                       

(PIE CHART PLOTTED FROM DATA IN TABLE BELOW)                                    

                                                                [Download Table]


Sector               % of Current
                     Market Value

                                 
Metals Mining ....       6.29%   
Chemicals ........       9.35%   
Pharmaceuticals ..       9.71%   
Closed-End Fund ..      21.52%   
Glass Works ......       9.34%   
Oil and Gas ......      10.25%   
Financial Services       7.75%   
Electric Services       25.79%   
                       100.00%   

GEOGRAPHIC DIVERSIFICATION OF EQUITY HOLDINGS                                   

(PIE CHART PLOTTED FROM DATA IN TABLE BELOW)                                    

Country     % of Equity Holdings                                                

Hungary          40.58%                                                         
Poland           17.09%                                                         
Russia           36.04%                                                         
Ukraine           6.29%                                                         
100.00%                                     

                                                                               5

497 8th Page of 18 TOC 1st Previous Next ↓Bottom Just 8th
ADRIAN DAY GLOBAL OPPORTUNITY FUND                                              

PORTFOLIO OF INVESTMENTS                                                        
                                                                  April 30, 1997

COMMON AND PREFERRED STOCKS     23.58%             SHARES   VALUE               

BANKS     .29%                                                          
Krung Thai Bank Public Co., Ltd.               5,000  $ 6,221           

BEVERAGES     .33%                                                      
Buenos Aires Embotelladora, ADR                4,000    7,000*          

CHEMICALS     .83%                                                      
Millenium Chemicals, Inc.                      1,000   17,750           

ELECTRIC UTILITIES     3.68%                                            
Empresa Nacional Electricidad, ADR               800   15,400           
Energy Group PLC, ADR                          1,000   31,375*          
Enersis, ADR                                   1,000   31,500           
                                          --------
                                            78,275
FINANCIAL SERVICES     .65%                                             
London Pacific Group, Ltd., ADR                1,000   13,875           

INSURANCE     .62%                                                      
Bangkok Insurance Public Co., Ltd.             1,000   13,094           

INVESTMENT COMPANIES     2.50%                                          
Brierley Investments, Ltd.                    40,000   35,204           
Korea Fund, Inc.                               1,394   17,948           
                                          --------
                                            53,152
MINING     9.35%                                                        
Corriente Resources, Inc.                      2,000   17,533*          
Eldorado Gold Corp, Ltd.                       5,000   22,542*          
Euro-Nevada Mining Corp.                       1,000   28,696           
Freeport-McMoran Copper & Gold, Inc.,                                   
0% Preferred                                  1,000   29,750*         
Minorco, ADR                                   1,000   22,250           
Miramar Mining Corp.                           3,500   12,398*          
Newmont Mining Corp.                           1,000   34,625           
Pan American Silver Corp.                      5,000   31,250*          
                                          --------
                                           199,044
RETAIL     2.09%                                                        
Semi-Tech Corp., Class A                      10,000   16,817           
The Singer Company N.V.                        1,500   27,750           
                                          --------
                                            44,567
STEEL PRODUCERS     .79%                                                
Pohang Iron & Steel Company, Ltd., ADR           700   16,887           

TELECOMMUNICATIONS     2.45%                                            
Airtouch Communications, Inc.                  1,000   25,500*          
PLD Telekom, Inc.                              5,000   26,562*          
                                          --------
                                            52,062
                                          --------
TOTAL COMMON STOCKS (cost $551,126)                   501,927           

See accompanying notes to the financial statements.                             

6                                                                               

497 9th Page of 18 TOC 1st Previous Next ↓Bottom Just 9th
ADRIAN DAY GLOBAL OPPORTUNITY FUND                                              

UNITED STATES GOVERNMENT                      PRINCIPAL                       
OBLIGATIONS   75.85%                           AMOUNT     VALUE               
United States Treasury Bill,                                            
4.60% yield, due 5/1/97                                                 
(cost $1,615,000)                         $1,615,000 $1,615,000         

TOTAL INVESTMENTS     99.43%                             __________             
(cost of $2,166,126)                                  2,116,927         
Other assets and liabilities, net     .57%                   12,193             

NET ASSETS     100%                                      $2,129,120             
                                            ==========

See accompanying notes to the financial statements.                             

                                                                               7

497 10th Page of 18 TOC 1st Previous Next ↓Bottom Just 10th
REGENT EASTERN EUROPEAN FUND                                                    

PORTFOLIO OF INVESTMENTS                                                        

                                                                  April 30, 1997

COMMON STOCKS    36.82%                            SHARES   VALUE               

CHEMICALS & ALLIED PRODUCTS   3.44%                                     
Borsodchem, GDR                                1,150 $  41,975          

ELECTRIC SERVICES   9.49%                                               
Unified Energy Systems                       445,285   115,774*         

GLASS & GLASSWARE   3.44%                                               
Krosnienskie Huty Szkla                        2,706    41,932          

INVESTMENT COMPANIES   10.77%                                           
Hungarian Investment Company                     700    96,600*         
Polish National Investment Fund                  800    34,787*         
                                            --------
                                             131,387
METAL MINING SERVICES   2.32%                                           
Ashurst Technology, Ltd.                      39,470    28,245*         

PETROLEUM REFINING & RELATED PRODUCTS   3.78%                           
Lukoil Holdings, ADR                            8104    46,032          

PHARMACEUTICALS   3.58%                                                 
Egis RT                                          686    43,603          
                                            --------
TOTAL COMMON STOCKS (cost $412,574)                        448,948              

UNITED STATES GOVERNMENT                        PRINCIPAL                       
OBLIGATIONS   70.12%                             AMOUNT                         
United States Treasury Bill,                                            
4.60% yield, due 5/1/97                                                 
(cost $855,000)                             $855,000   855,000          

TOTAL INVESTMENTS   106.94%                              _________              
(cost of $1,267,574)                                 1,303,948          
Other assets and liabilities, net   (6.94%)                (84,597)             
                                           ---------

NET ASSETS 100%                                         $1,219,351              
                                          ==========

*  Non-income producing security                                                
ADR - American Depository Receipt                                               
GDR - Global Depository Receipt                                                 

See accompanying notes to the financial statements.                             

8                                                                               

497 11th Page of 18 TOC 1st Previous Next ↓Bottom Just 11th
STATEMENTS OF ASSETS AND LIABLILITIES                                           
                                                                  April 30, 1997

                              ADRIAN DAY      REGENT
                                GLOBAL       EASTERN
                               OPPORTUNITY    EUROPEAN

ASSETS                                                                          
Investments, at value (identified cost of                                       
$2,166,126 and $1,267,574)                $2,116,927   $1,303,948           
Cash                                            10,374        3,727             
Receivables:                                                                    
Dividends                                        799         ---            
From manager                                   2,753        5,226           
Other                                               28           19             
                                 ---------    ----------
Total Assets                                 2,130,881    1,312,920             

LIABILITIES                                                                     
Payables:                                                                       
Investments puchased                            ---        87,733           
Accounts payable and accrued expenses          1,761        5,836           
Total Liabilities                                1,761       93,569             
                               ----------   ----------
NET ASSETS                                  $2,129,120   $1,219,351             
                               ==========   ==========

NET ASSETS CONSIST OF:                                                          
Paid in capital                             $2,186,066   $1,181,582             
Undistributed net investment income              5,959        1,137             
Accumulated net realized gain (loss)                                            
on investments and foreign currencies        (13,706)         258           
Net unrealized appreciation (depreciation)                                      
of investments and other assets and                                         
liabilities denominated in foreign                                          
currencies                                   (49,199)      36,374           
Net assets applicable to capital shares                                         
outstanding                               $2,129,120   $1,219,351           
                               ==========   ==========

Capital shares outstanding, an                                              
unlimited number of no par shares                                           
authorized                                   222,941      117,730           
                               ==========   ==========

NET ASSET VALUE, PER SHARE                       $9.55       $10.36             
                                    =====       ======

See accompanying notes to the financial statements.                             

                                                                               9

497 12th Page of 18 TOC 1st Previous Next ↓Bottom Just 12th
STATEMENTS OF OPERATIONS                                                        
                                                     Period ended April 30, 1997

                              ADRIAN DAY      REGENT
                                GLOBAL       EASTERN
                               OPPORTUNITY    EUROPEAN

NET INVESTMENT INCOME                                                           
INCOME:                                                                         
Dividends                                    $   3,365      $               
Foreign taxes withheld on dividends               (496)          ---        
                                     ---------      --------
Net dividends                                  2,869                    
Interest and other                               8,475         3,608        
                                     ---------      --------
Total Income                                  11,344         3,608      
                                     ---------      --------

EXPENSES:                                                                       
Management Fee                                   2,870         1,014        
Transfer agent fees and expenses                   893           338        
Accounting service fees and expenses             6,478         2,924        
Legal and professional fees                        152            47        
Distribution plan expenses                         538           190        
Custodian fees                                     684            25        
Shareholder reporting                               15             9        
Registration fees                                3,682         3,002        
Trustee's fees and expenses                         38             9        
Miscellaneous                                       42           139        
                                     ---------       -------
Total expenses before reductions                15,392         7,697        
Expenses reimbursed or offset                  (10,007)       (5,226)       
                                      --------       -------
Net Expenses                                   5,385         2,471      
                                      --------       -------
NET INVESTMENT INCOME (LOSS)                       5,959         1,137          
                                      --------       -------

NET REALIZED AND UNREALIZED GAIN (LOSS)                                         
ON INVESTMENTS                                                                  
Realized gain (loss) from:                                                  
Securities                                   (13,700)         ---       
Foreign currency transactions                     (6)         258       
                                     --------      -------
Net realized gain (loss)                 (13,706)         258   
Net change in unrealized appreciation                                       
(depreciation) of:                                                          
Investments                                  (49,198)      36,374       
Other assets and liabilities denominated in                             
foreign currencies                                (1)         ---       
Net change in unrealized appreciation                               
(depreciation)                             (49,199)      36,374     
                                     --------      -------
NET REALIZED AND UNREALIZED GAIN (LOSS)                                         
ON INVESTMENTS                                   (62,905)      36,632           
                                     --------      -------

NET INCREASE (DECREASE) IN NET ASSETS                                           
RESULTING FROM OPERATIONS                       $(56,946)     $37,769           
                                     ========      =======

See accompanying notes to the financial statements.                             

10                                                                              

497 13th Page of 18 TOC 1st Previous Next ↓Bottom Just 13th
STATEMENTS OF CHANGES IN NET ASSETS                                             
                                                     Period ended April 30, 1997

                                  ADRIAN DAY      REGENT
                                     GLOBAL      EASTERN
                                   OPPORTUNITY    EUROPEAN

INCREASE (DECREASE) IN NET ASSETS                                               
From investment operations:                                                     
Net investment income                      $      5,959    $  1,137         
Net realized gain (loss)                        (13,706)        258         
Net change in unrealized                                                    
appreciation (depreciation)                  (49,199)     36,374      
                                   -----------   ---------
NET INCREASE (DECREASE) IN NET                                          
ASSETS FROM INVESTMENT OPERATIONS             (56,946)     37,769       

DISTRIBUTIONS TO SHAREHOLDERS                         ---         ---           
                                   -----------   ---------

FROM CAPITAL SHARE TRANSACTIONS:                                                
Proceeds from shares sold                     2,387,820   1,181,582         
Paid-in capital portion of short-term                                       
trading fee                                         106         ---         
                                    ----------   ---------
                                     2,387,926   1,181,582

Cost of shares redeemed                        (201,860)        ---         
                                    ----------   ---------
NET INCREASE (DECREASE) IN NET ASSETS                                   
FROM CAPITAL SHARE TRANSACTIONS             2,186,066   1,181,582       
                                    ----------   ---------

NET INCREASE (DECREASE) IN NET ASSETS           2,129,120   1,219,351           

NET ASSETS                                                                      
Beginning of period                                   ---         ---           
                                    ----------   ---------
END OF PERIOD (including undistributed net                                      
investment income of $5,959 and $1,137,                                     
respectively)                                $2,129,120   $1,219,351        
                                     ==========   ==========

CAPITAL SHARE ACTIVITY                                                          
Shares sold                                     243,949      117,730        
Shares redeemed                                 (21,008)         ---        
                                     ----------   ----------
Net share activity                            222,941      117,730      
                                     ==========   ==========

See accompanying notes to the financial statements.                             

                                                                              11

497 14th Page of 18 TOC 1st Previous Next ↓Bottom Just 14th
NOTES TO FINANCIAL STATEMENTS                                     APRIL 30, 1997

NOTE 1     SIGNIFICANT ACCOUNTING POLICIES                                      

The Adrian Day Global  Opportunity  Fund  ("Adrian  Day  Global") and the Regent
Eastern European Fund ("Eastern  European"),  collectively the "Funds," are each
diversified,  open-end  management  investment  companies  registered  under the
Investment  Company Act of 1940.  The Funds are two of four  portfolios  of U.S.
Global Accolade Funds (the "Trust"), a Massachusetts  business trust. Adrian Day
Global commenced  operations on February 20, 1997, and Eastern European on March
31, 1997.                                                                       

The  following  is a summary of  significant  accounting  policies  consistently
followed by the Funds in the  preparation  of their  financial  statements.  The
policies are in conformity with generally accepted accounting principles.       

A.  SECURITY VALUATIONS                                                         

Investments traded on national and international securities exchanges and NASDAQ
quoted  securities are valued at the last sales price reported by the security's
primary  exchange at the time of daily valuation.  Listed and NASDAQ  securities
for which no sale was reported,  over-the-counter securities and corporate bonds
are valued at the mean  between the last  reported  bid and ask prices,  some of
which are obtained from one or more dealers that make markets in the securities.
Short-term  investments  with effective  maturities of sixty days or less at the
date of purchase are valued at amortized cost, which approximates  market value.
Securities for which market  quotations are not readily available and securities
that are subject to legal or  contractual  restrictions  on resale are valued at
fair value as determined by the Trustees.                                       

B. SECURITY TRANSACTIONS AND INVESTMENT INCOME                                  

Security transactions are accounted for on trade date. Realized gains and losses
from security  transactions are determined on an identified cost basis. Dividend
income is recorded on the  ex-dividend  date or, in the case of certain  foreign
securities,  as soon as the information becomes available to the Funds. Interest
income, accretion of discount and amortization of the premium are recorded on an
accrual basis.                                                                  

C.  REPURCHASE AGREEMENTS                                                       

The  Funds  may enter  into  repurchase  agreements  with  recognized  financial
institutions or registered broker/dealers and, in all instances, hold underlying
securities with a value exceeding the total repurchase price,  including accrued
interest.  The Funds participate,  with other Funds managed by the Manager, in a
joint  repurchase  agreement  account  where  uninvested  cash  is  collectively
invested  in  repurchase  agreements  for  which  each  Fund has its  respective
percentage of an undivided interest in the account.                             

12                                                                              

497 15th Page of 18 TOC 1st Previous Next ↓Bottom Just 15th
D.  FOREIGN CURRENCY TRANSACTIONS                                               

All or a significant  portion of the Funds' assets may be invested in securities
of foreign issuers.  The accounting  records of each Fund are maintained in U.S.
dollars.  At  each  net  asset  determination  date  the  value  of  assets  and
liabilities  denominated in foreign  currencies is translated into U. S. dollars
using the current exchange rate. Security transactions,  income and expenses are
converted  at the  prevailing  rate of  exchange  on the date of the event.  The
effect of changes in foreign exchange rates on foreign denominated securities is
included with the net realized and unrealized gain or loss on securities.  Other
foreign currency gains or losses are reported separately.                       

E.  FEDERAL INCOME TAXES                                                        

The Funds intend to comply with the  requirements  of the Internal  Revenue Code
applicable to regulated  investment  companies  and to  distribute  all of their
taxable  income to  shareholders.  Accordingly,  no provision for federal income
taxes is required.                                                              

F.  DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS                                 

Dividends and  distributions  to  shareholders  are recorded by the Funds on the
ex-dividend  date.  Distributions  are determined in accordance  with income tax
regulations  that may differ  from  generally  accepted  accounting  principles;
accordingly,  periodic  reclassifications  are made  within  each Funds  capital
accounts to reflect income and gains available for distribution under income tax
regulations.  The  Funds  make  distributions  from net  investment  income  and
realized capital gains at least annually.                                       

G.  EXPENSES                                                                    

Each Fund  bears  expenses  incurred  specifically  on its  behalf as well as an
allocation of Trust expenses.  Short-term trading fees, collected from temporary
investors in the Funds,  are applied as a reduction of expenses to the extent of
such related costs;  any excess is credited as paid-in  capital.  Expense offset
arrangements have been made with the Funds' custodian whereby the custodian fees
are paid indirectly by credits earned on the Funds' cash balances.  Such deposit
arrangements are an alternative to overnight investments.                       

                                                                              13

497 16th Page of 18 TOC 1st Previous Next ↓Bottom Just 16th
H.  USE OF ESTIMATES IN FINANCIAL STATEMENT PREPARATION                         

The preparation of financial  statements in conformity  with generally  accepted
accounting principles requires management to make estimates and assumptions that
affect the reported amounts of assets and liabilities,  disclosure of contingent
assets and liabilities at the date of the financial statements, and the reported
amounts of income and expenses during the reporting period. Actual results could
differ from those estimates.                                                    

NOTE  2    RELATED PARTY TRANSACTIONS                                           

U.S.  Global  Investors,  Inc. (the  "Manager"),  under an  investment  advisory
agreement with the Trust in effect through March 8, 1988,  furnishes  management
and  investment  advisory  services  and,  subject  to  the  supervision  of the
Trustees,  directs  the  investments  of the  Funds  in  accordance  with  their
investment objectives,  policies and limitations. The Manager 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 a
controlling owner of the Manager.                                               

For the  services of the Manager,  each Funds pay a management  fee at an annual
rate of 1.25% of its  average  net  assets  for  Adrian  Day Global and 1.25% of
average  net  assets  for  Eastern  European.  Fees are  accrued  daily and paid
monthly.                                                                        

United Shareholder  Services,  Inc.  ("USSI"),  a wholly owned subsidiary of the
Manager,  is transfer agent and accounting service agent for the Fund. Each Fund
pays an annual fee based on number of shareholder  accounts for transfer  agency
services.  For  maintaining  the books and records of the Funds and  calculating
their  daily net asset  value,  USSI is paid a fee based  upon the level of each
Funds average net assets, subject to a minimum fee. Additionally, the Manager is
reimbursed certain costs for in-house legal services pertaining to the Funds.   

Each  Fund  has  adopted  a  Distribution  Plan  pursuant  to Rule  12b-1 of the
Investment  Company  Act of 1940 that allows an annual fee of up to 0.25% of its
average net assets to be used for, or to reimburse the Manager for, expenditures
in connection with sales and promotional services related to the distribution of
each Fund's shares.                                                             

The Manager  has  volunteered,  for an  indefinite  period,  to limit the annual
expenses  of the Funds to 2.50% of average  net assets for Adrian Day Global and
3.25% of average net assets for Eastern European.                               

During the period  ended April 30,  1997,  A & B Mailers,  Inc.,  a wholly owned
subsidiary  of the Manager,  was paid $11 for mailing  services  provided to the
Funds.                                                                          

14

497 17th Page of 18 TOC 1st Previous Next ↓Bottom Just 17th
NOTE 3     INVESTMENT ACTIVITY                                                  

For  the  period  ended  April  30,  1997,  purchases  and  sales  of  long-term
investments  were  $586,822  and $35,696,  respectively,  for Adrian Day Global.
Purchases for Eastern European were $412,574 with no sales.                     

The federal income tax basis of the  securities  owned by each Fund at April 30,
1997, was the same as the financial  accounting  basis. The tax basis components
of gross  unrealized  appreciation  and  depreciation  were $7,006 and  $56,204,
respectively,  for Adrian Day Global and  $36,983  and $609,  respectively,  for
Eastern European.                                                               

                                                                              15

497 Last Page of 18 TOC 1st Previous Next ↓Bottom Just 18th
FINANCIAL HIGHLIGHTS                                                            

For a capital share outstanding during the period ended April 30, 1997,         

                                                     ADRIAN DAY   REGENT
                                                        GLOBAL     EASTERN
                                                         OPPORTUNITY* EUROPEAN**

NET ASSET VALUE, BEGINNING OF PERIOD....................... $10.00      $  10.00
                                                            ------      --------

INVESTMENT ACTIVITIES                                                           
  Net investment income ...................................    .06           .01
  Net realized and unrealized gain (loss) .................   (.51)          .35
Total from investment activities ..........................   (.45)          .36

DISTRIBUTIONS .............................................     --            --
                                                            -------     --------

NET ASSET VALUE, END OF PERIOD ............................ $  9.55     $ 10.36 
                                                            =======     ========

TOTAL RETURN (excluding account  fees).....................   (4.50)%     3.60 %
Ratios to Average Net Assets (a):                                               
  Net investment income ...................................    2.77 %     1.49 %
  Total expenses ..........................................    7.14 %    10.12 %
  Expenses reimbursed or offset ...........................   (4.64)%    (6.87)%
  Net expenses ............................................    2.50 %     3.25 %
Average commission rate paid .............................. $ .0385      $.2211 
Portfolio turnover rate ...................................       8 %        0 %

Net assets, end of period (in thousands)................... $2,129       $1,219 

*    From February 20, 1997 (commencement of operations).                       
**   From March 31, 1997 (commencement of operations).                          
(a)  Ratios  are  annualized  for  periods  of  less  than  one  year.  Expenses
     reimbursed or offset reflect reductions to total expenses,  as discussed in
     the notes to the financial statements.  Such amounts would decrease the net
investment income ratio had such reductions not occurred.             

See accompanying notes to financial statements.                                 

16

497	1st Page of 18	TOC	↑Top	Previous	Next	↓Bottom	Just 1st

497	2nd Page of 18	TOC	1st	Previous	Next	↓Bottom	Just 2nd

497	3rd Page of 18	TOC	1st	Previous	Next	↓Bottom	Just 3rd

497	4th Page of 18	TOC	1st	Previous	Next	↓Bottom	Just 4th

497	5th Page of 18	TOC	1st	Previous	Next	↓Bottom	Just 5th

497	6th Page of 18	TOC	1st	Previous	Next	↓Bottom	Just 6th

497	7th Page of 18	TOC	1st	Previous	Next	↓Bottom	Just 7th

497	8th Page of 18	TOC	1st	Previous	Next	↓Bottom	Just 8th

497	9th Page of 18	TOC	1st	Previous	Next	↓Bottom	Just 9th

497	10th Page of 18	TOC	1st	Previous	Next	↓Bottom	Just 10th

497	11th Page of 18	TOC	1st	Previous	Next	↓Bottom	Just 11th

497	12th Page of 18	TOC	1st	Previous	Next	↓Bottom	Just 12th

497	13th Page of 18	TOC	1st	Previous	Next	↓Bottom	Just 13th

497	14th Page of 18	TOC	1st	Previous	Next	↓Bottom	Just 14th

497	15th Page of 18	TOC	1st	Previous	Next	↓Bottom	Just 15th

497	16th Page of 18	TOC	1st	Previous	Next	↓Bottom	Just 16th

497	17th Page of 18	TOC	1st	Previous	Next	↓Bottom	Just 17th

497	Last Page of 18	TOC	1st	Previous	Next	↓Bottom	Just 18th

Dates Referenced Herein and Documents Incorporated by Reference

		Referenced-On Page
This ‘497’ Filing	Date	First	Last	Other Filings

Filed on:	7/2/97
	4/30/97	1	18	NSAR-A
	3/31/97	14	18	N-30D, NSAR-A
	2/20/97	14	18	497
				List all Filings

↑Top

Filing Submission 0000902042-97-000040 – Alternative Formats (Word / Rich Text, HTML, Plain Text, et al.)

US Global Accolade Funds – ‘497’ on 7/2/97

As of: Wednesday, 7/2/97 · Accession #: 902042-97-40 · File #: 33-61542

Previous ‘497’: ‘497’ on 6/4/97 · Next: ‘497’ on 7/7/97 · Latest: ‘497’ on 5/14/08

Definitive Material — Rule 497Filing Table of Contents

Document Table of Contents

Dates Referenced Herein and Documents Incorporated by Reference

Definitive Material — Rule 497
Filing Table of Contents