◆ SpookStack

ii a -- INVESTMENT OBJECTIVES AND POLICIES The principal investment objective of the Fund is capital appreciation. The generation of current income, while an objective, is secondary in the selection of portfolio securities for the Fund. ‘ As a fundamental policy the Fund intends to concentrate its investments in securities of companies engaged in exploration, mining, processing, fabrication and distribution of natural resources (hydro- carbons, minerals, metals of silver, uranium, platinum and copper). Accordingly, the Fund will have at least 25% of the vatue of its assets invested in such securities except during unusual and adverse economic conditions that may exist in the natural resource industry. The Fund's policy under normal c s is to select inv that a minimum of 80% of its oes eee lb dre fo sources ote oe Une Sia a so that at least 50% of the value of its assets will be securitiés of foreign corporations. The investment concentration of the Fund’s assets is current he common stock d_other precious metals mining companies. As the highest production of gold and other precious metals is currently taking place in the Republic of South Africa, management anticipates that a major portion of the Fund's portfotio will continue to consist of the securities of issuer's of that area. If the Fund’s management, after review by the Board of Directors, decided to de-emphasize investment in gold and other precious metals mining shares, the Fund would move out of precious metals mining shares and into other investment media (other natural resources). The Fund couid, for temporary defensive purposes, make investments in domestic corporation bonds of investment grade, U.S. government debt obligations, large amounts of cash, Certificates of Deposit, or bankers acceptances. The shareholders would be advised of the change but a stockholders vote of — approval would not be tak The Fund may also invest up io 5% of its total assets in repurchase agreements consisting of U.S. Government securities provided the agreeing dealer (excepting banks) is one with which the Federat Reserve conducts open market operations. A repurchase agreement is a transaction where the seller agrees to repurchase the specific secu rity soid at a mutually agreed date, interest rate and price. While the maturity of the underlying securities in a repurchase agreement transaction may be more than one year, the term r : Although management will attempt to achieve the Fund’s objectives, there can be no assurance that they will be achieved. ; a Special Risk Considerations Although the concentration of investments by the Fund in securities of foreign issuers engaged in the mining of gold and other precious metals may involve special considerations and additional investment risks, management believes that selective investment in such securities may offer a greater return than shares of domestic industrial users. Also, since the market action of such shares has tended to move against or independently of the market trend of industrial shares, the addition of gold and other precious metals mining shares to a portfolio may increase the return and may reduce overall fluctuations in portfolio value. Thus, an investment in the Fund's shares should be considered part of an overall investment program rather than a complete investment program. There is, of course, no assurance that the opinion of management will prevail or that the Fund will in fact achieve its objectives. The investment in securities of foreign issuers may involve special considerations associated with fluctuating exchange rates, the fact that foreign securities and the markets therefore are not as liquid as their domestic counterparts, the imposition of exchange control restrictions and economic or political instability. However, management believes that the Company’s policy to invest generatly in American Depository Receipts (“ADR's”) or other securities which can be sold for United States dollars and for 4