U.S. Government Securities Savings Fund (UGSXX)
U.S. Treasury Securities Cash Fund (USTXX)

Core inflation measures remain contained and economic growth has been relatively robust, but early indicators appear to signal an economic slowdown ahead. Numerous indicators indicate that the housing market is finally beginning to slow, which has been a driver of consumption. The personal savings rate has been negative for the last six months, and equity market returns have been lackluster. These indicators point to a consumer slowdown during 2006. GDP growth is likely to slow from the current 3.5 – 4.0 percent range to the 2.5 percent range for 2006.

An investment in a money market fund is neither insured nor guaranteed by the Federal Deposit Insurance Corporation or any other government agency. Although the fund seeks to preserve the value of your investment at $1.00 per share, it is possible to lose money by investing in the fund.

Near-Term Tax Free Fund (NEARX)

Tax Free Fund (USUTX)

Market sentiment remains negative as many still believe bond yields must move higher. This likely remains a contrarian indicator and provides an opportunity to extend maturity on market weakness. With the strong out-performance of high-yield related securities, odds favor a reversal, with higher quality credits outperforming over the next year. The market and the Federal Reserve (Fed) appear to have diverging views on the market and the economy. This increases the likelihood of a volatile market, and also buying opportunities. If commodity prices remain strong, inflation remains a threat to the market.

Morningstar Overall, 5-year and 10-year Ratings™. Among 115, 115, 86 and 58 Municipal National Short-Term funds, the Near-Term Tax Free Fund earned 4 stars, 3 stars, 4 stars and 4 stars for the overall, 3-, 5- and 10-year periods ending 6/30/06.

MegaTrends Fund (MEGAX)
Sub-Adviser: Leeb Capital Management, Inc.; Stephen Leeb, Ph.D., Portfolio Manager

The record-beating profits and strong GDP growth created a strong economy. The questions going forward are: How much higher can GDP grow without generating much higher inflation? How long can high commodity prices be tolerated by the consumer? How much higher can margins go? We think that the answer to all of these questions is that the economy is still strong and can tolerate higher energy prices as long as they are rising slowly.

Morningstar 3-Year Rating™. Among 1361, 1361, 1081 and 402 Large Growth funds, the MegaTrends Fund earned 4 stars, 5 stars, 4 stars and 4 stars for the overall, 3-, 5- and 10-year periods ending 6/30/06.

All American Equity Fund (GBTFX)

The fund has increased the level of cash held. This will allow the fund team a source of liquidity to take advantage of any opportunities that may present themselves in the coming months. Ben Bernanke and other Federal Reserve governors appear to be leaning towards stopping the interest rate hikes sooner rather than later based on public comments made by them. There appears to be no clear trend to investing in the market so far this year. A trendless market will be challenging to outperform.

Morningstar 3-year Rating™. Among 1361, 1361, 1081 and 402 Large Growth funds, the All American Equity Fund earned 4 stars, 5 stars, 5 stars and 3 stars for the overall, 3-, 5- and 10-year periods ending 6/30/06.

Holmes Growth Fund (ACBGX) (formerly Bonnel Growth Fund)

Oil prices continued to climb higher, reaching $75 a barrel in April from $60 at the end of October. High energy prices became the national focus again as gasoline prices approached $3.00 a gallon as refiners retooled for the summer driving season and new regulations for diesel and gasoline went into effect. Higher commodity prices and monetary policy uncertainty were the key drivers as Fed Chairman Alan Greenspan retired and Ben Bernanke took over the top post in February 2006. Strong worldwide economic growth was the dominant theme in the equity markets for the past six months. Cyclical stocks posted strong performance in response to better than expected growth. This was especially true in areas that focused on commodities and manufacturing.

Morningstar Overall, 3-year and 5-year Ratings™. Among 823, 823, 642 and 231 Mid-Cap Growth funds, the Holmes Growth Fund earned 4, 4, 4 and 3 stars for the overall, 3-, 5- and 10-year periods ending 6/30/06. Investing in small- and mid-cap stocks may be more risky and more volatile than investing in large-cap stocks.