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					Outlook for
Eastern Europe and Russia

Julian Mayo
Investment Director
Charlemagne Capital (UK) Limited
Who is Charlemagne Capital?

!   Independent emerging markets investment management
    group, founded in 2000

!   Funds Under Management US$ 1.01bn

!   Strong debt-free balance sheet

!   Rigorous approach to bottom-up stock selection and risk
    management

!   Sub-advisor to the US Global Accolade Funds: Eastern
    European Fund (EUROX)




                                                              2
Our Aim

!   …Significant and consistent out-performance of
    benchmark

!   …Regular 1st or 2nd quartile competitor ranking

!   …Information Ratio: > 0.5




                                                      3
The Investment Case

Why Central & Eastern Europe
& Russia?
Investment Case
Central and Eastern Europe



                      Central &
                    Eastern Europe
                      2 Themes




      Convergence
                                     Russia & CIS
        Markets




                                                    5
     Investment Case: Convergence Markets
      EU – Accession in May 2004




EU Members                                                                                               10 Accession
                                                                                                          Candidates




                                                                                            Population of convergence area: 102.9m
                                                                                            GDP: € 491.5 billion
  Source: www.europa.eu.int - Englarging the EU statistical Network / Charlemagne Capital                                            6
   Investment Case: Convergence Markets
   Timeline to EMU
            May 2004                   Min 2 years      Mid 2006 at the
                                                           earliest

      “Some time after
                                      Country must
       accession, new
                                         fulfil
       member states
                                       Maastricht
      will be expected                                    ECB and EC
                                        criteria
       to join ERM II”                                      compile
                                                         convergence
                                                            reports,
                                                        recommending
                                                           countries
     EMU membership                     Technical        acceptance to
         occurs                      preparations for   EMU, European
                                     EMU take place      Council holds
                                                             a vote
       Jan 2007 at the
        very earliest                Circa 6 months




Source: EEMEA Research – July 2003                                        7
Investment Case: Convergence Markets
Strong Economic Fundamentals

                                         GDP Growth                          Inflation
                    2003                 2004                  2005   2003   2004        2005


Czech               2.8%                 3.0%                  4.0%   0.2%   3.0%        2.8%
Hungary             2.7%                 3.6%                  4.0%   4.6%   6.1%        4.2%
Poland              3.5%                 4.2%                  5.3%   0.9%   2.6%        2.3%
Germany             0.0%                 1.9%                  1.6%   1.1%   0.9%        0.8%




 Source: ING Financial Markets January 2004 / Brunswick UBS Warburg
                                                                                                8
                        Investment Case: Convergence Markets
                        Public debt


Government debt (internal and external) must be no more than 60% of GDP.

                                                                Public debt (% of GDP)
 100


  80


  60


  40


  20


  0
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                   Source: ING Barings. July 2003                                                                                                     9
                      Investment Case: Maastricht Criteria
                      Bond yields – when the market believes, it happens!

Long-term (ten-year) interest rates must be within 2% of the average of the three EU countries with the
lowest inflation – the markets do this when they see Euro entry as credible

                     Yield convergence
                      Yield convergence
                                                                                      Spreads over German Bunds
                                                                                    Spreads overGerman Bunds

       700                                                     1000
                                           Portugal   Spain
                                           Italy      Greece                                                           Czech
       600
                                                                800                                                    Hungary
       500                                                                                                             Poland
                                                                600
       400
                                                                400
       300
                                                                200
       200

       100                                                        0
                                                                  Jan-99   Jan-00         Jan-01     Jan-02       Jan-03
         0                                                     -200
         1993 1994 1995 1996 1997 1998 1999 2000 2001




                   Source: ING Barings. July 2003                                                                                10
                        Investment Case: Convergence Markets
                        Budget deficits – Will governments do it?

2003 % of GDP

                                                     Maastricht

                                                                  The budget deficit must be no more than
                                                     Slovenia

                                                                  3% of GDP. Note elections in 2005 and
                                                     Slovakia
                                                                  2006
                                                     Poland
                                                                                              Budget deficit (% of GDP)
                                                                     -1
                                                     Hungary
                                                                     -2

                                                     Czech           -3
                                                                          Italy (1999)    Spain     Portugal      Greece   Hungary
                                                                     -4
                                                     Lithuania                           (1999)      (1999)       (2001)    (2007)
                                                                     -5

                                                     Latvia          -6

                                                                     -7
                                                     Estonia                              Euro - 5
                                                                                          Euro -4
                                                                     -8
                                                                                          Euro - 3
-10   -8        -6        -4         -2          0                                        Euro -2 (Maastricht)
                                                                     -9                   Euro - 1
                                                                                          Year of Euro adoption
                                                                    -10
                     Source: ING Barings. 2003                                                                                       11
Investment Case: Convergence Markets

!   EU accession in May 2004
!   Superior Economic growth
!   Prospect of common currency and falling risk
    premiums
!   Major market inefficiencies
!   Attractive investment returns (expected)




                                                   12
The Investment Case: Russia

Structural Reforms & High Oil Prices
   Investment Case: Russia
   Russia – Natural Resource Giant


                                                                                         • 11 time zones
                                                                                         • 11.4% of the world’s land mass
                                                                                         • World’s largest producer of
                                                                                             hydrocarbons
                                                                                         •31% of world nickel resources




Source: CIA The World Factbook 2002 – www.cia.gov / www.bp.com / www.worldtimezone.com / Statistical Review of World Energy 2003   14
 Investment Case: Russia
 Political Stability Confirmed in December Elections




    !        Duma elections suggests no difficulties in the March 2004
             Presidential elections for Putin.
    !        Creates platform for four years of progressive structural reforms.
Source: Renaissance Capital – December 03                                         15
        Investment Case: Russia
        Structural Reforms = Portfolio Opportunities

                                   GAZPROM ring fence review
                 Natural
                Monopoly           Break up of UES & creation of listed
                 Reform            generation & distribution businesses
                                   Tariff Increases = increased profitability



                                   Defined benefit pension scheme = new pool
                                   of liquidity for Russian assets
                  Pension
                   Reform          Total inflows to third party vehicles est. $2bn
                                   per year from 2003



                                   Introduction of deposit insurance
Banking Sector Reform
                                   Introduction of new accounting standards


     Source: Charlemagne Capital                                                     16
                 Investment Case: Russia
                 Structural Reform Expectations 2004 - 2008
                 Case Study: Gas Sector
                 !   Domestic gas prices set to increase by 100% by 2008
                 !   Gazprom to be separated into distribution and production
                 !   Gazprom ‘ring fence’ to be removed
                                                        Russian Natural Gas reserves as a proportion of world
                Gas Prices $/mcm
               Europe     Russia (Industrial)
140
                                                                                Africa, 7%   Asia Pacific,
120                                                                                              8%
                                                         Middle East,
100                                                         35%

 80

                                                                                                   Russia,
 60
                                                                                                    31%
 40
                                                            Other CIS,
 20                                                            6%

                                                                 Europe, 3%            Latin
  0
      2003F             2005F                   2010F                      North     America, 5%
                                                                         America, 5%


              Source: UFG Research                                                                              17
Investment Case: Russia
Macroeconomic Overview

                                            2003   2004 (F)   2005 (F)
GDP growth %                                 6.3        5.0        5.0
Inflation %                                 13.6      11.0         9.0
Fiscal Balance (% of GDP)
Consolidated Govt Balance                    1.0        0.0        0.0
Current account balance as % of
GDP                                          9.4        4.9        3.2
Gross External Debt (govt. only)
% of GDP                                    26.4      20.9       17.9




 Source: ING Financial Markets – Jan 2004

                                                                         18
                                                          Investment Case: Russia
                                                      Strong Economic Fundamentals



                                                 2002 / 2003 YOY Growth Rates                                                                  Investment led Economic Growth
                                                                                                                                                      GDP growth drivers
                            8.0%

                                                                                                            China                GDP   Household consumption   Fixed capital investment   Net exports
2003 (e) GDP Growth % YOY




                            7.0%
                                                                                      Russia
                            6.0%                                                                                           20

                            5.0%                                                                                           15
                                                                                           South Korea
                                                                                                                           10
                            4.0%
                                                          Singapore
                                                                                                                            5
                                                                                                                            %
                            3.0%                                South Africa
                                                     UK               Taiwan                                                0
                            2.0%
                                                 Brazil                                                                     -5
                            1.0%
                                       Germany                                                                             -10
                            0.0%
                                                                                                                           -15
                                0.0%      1.0%     2.0%      3.0%       4.0%   5.0%     6.0%     7.0%    8.0%       9.0%
                                                                                                                                       2000            2001              2002               2003E
                                                           2002 GDP Growth % YOY




                                                  Source: Troika Dialog / Brunswick UBS Warburg                                                                                                     19
                                             Investment Case: Russia
                                             Strong Economic Fundamentals

                   Economic Growth - Real Change in GDP                                                                               Current Account % GDP vs
                   vs Average Brent Price $/bbl (Quarterly)                                                                       Average Brent Price $/bbl (Quarterly)

                                            GDP % chg. y-o-y          Brent $/bbl                                                                          Current Account % GDP             Brent $/bbl

15.0%                                                                                                        35.0   25.0%                                                                                                       35.0


                                                                                                             30.0                                                                                                               30.0
                                                                                                                    20.0%
10.0%
                                                                                                             25.0                                                                                                               25.0
                                                                                                                    15.0%
 5.0%
                                                                                                             20.0                                                                                                               20.0
                                                                                                                    10.0%
                                                                                                             15.0                                                                                                               15.0
 0.0%
                                                                                                                    5.0%
                                                                                                             10.0                                                                                                               10.0
 -5.0%
                                                                                                                    0.0%
                                                                                                             5.0                                                                                                                5.0


-10.0%                                                                                                       0.0    -5.0%                                                                                                       0.0
    95
          95
               96
                    96
                         97

                              97
                                   98
                                        98
                                             99
                                                  99
                                                       00
                                                            00
                                                                 01
                                                                       01
                                                                            02

                                                                                    02
                                                                                         03
                                                                                              03
                                                                                                   04
                                                                                                        04




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                                                                                                                                  96
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                                                                                                                                                                                                     02
                                                                                                                                                                                                            03
                                                                                                                                                                                                                 03
                                                                                                                                                                                                                      04
                                                                                                                                                                                                                           04
  1Q
         3Q
              1Q
                   3Q
                        1Q

                             3Q
                                  1Q
                                       3Q
                                            1Q
                                                 3Q
                                                      1Q
                                                           3Q
                                                                1Q
                                                                     3Q
                                                                          1Q

                                                                               3Q
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                                                                                                    3Q




                                                                                                                      1Q
                                                                                                                            3Q
                                                                                                                                 1Q
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                                                                                                                                           1Q

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                                                                                                                                                                                                                3Q
                                                                                                                                                                                                                     1Q
                                                                                                                                                                                                                          3Q
                                        Source: Brunswick UBS Warburg                                                                                                                                                           20
                                        Investment Case: Russia
                                        Strong Economic Fundamentals

       CBR Currency Reserves (ex. Gold) Quarterly $bn                                                                     Primary Balance % GDP vs
           vs Average Brent Price $/bbl Quarterly                                                                     Average Brent Price $/bbl (Quarterly)

                              CBR Currency Reserves $bn        Brent $/bbl                                                            Primary Balance % GDP    Brent $/bbl

80.0                                                                                           35.0   10.0%                                                                               35.0


70.0                                                                                           30.0   8.0%                                                                                30.0

60.0
                                                                                               25.0   6.0%                                                                                25.0

50.0
                                                                                               20.0   4.0%                                                                                20.0

40.0
                                                                                               15.0   2.0%                                                                                15.0
30.0
                                                                                               10.0   0.0%                                                                                10.0
20.0
                                                                                                      -2.0%                                                                               5.0
10.0                                                                                           5.0

                                                                                                      -4.0%                                                                               0.0
 0.0                                                                                           0.0
                                                                                                          96


                                                                                                                96


                                                                                                                      97


                                                                                                                            98


                                                                                                                                  99


                                                                                                                                           99


                                                                                                                                                   00


                                                                                                                                                          01


                                                                                                                                                                02


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                                                                                                                                                                              03


                                                                                                                                                                                    04
  95


        95


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                                 98


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                                                     01


                                                           01


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                                                                              03


                                                                                    04


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                                                                                                        1Q


                                                                                                               4Q


                                                                                                                     3Q


                                                                                                                           2Q


                                                                                                                                 1Q


                                                                                                                                         4Q


                                                                                                                                                 3Q


                                                                                                                                                        2Q


                                                                                                                                                               1Q


                                                                                                                                                                     4Q


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1Q


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                                     Source: Brunswick UBS Warburg                                                                                                                       21
      Investment Case: Russia
      Strong Economic Fundamentals
      How Sensitive is Russia to the oil price?




Oil price, Brent, 2004 avg, $/bbl      13.5       16.0   21.0   24.0   28.8

Current account, % of GDP              1.3%       2.2%   3.9%   4.0%   5.2%


CBR reserves, eop, $ bn                60.3       68.3   72.5   90.0   100.0


Rb/$ exchange rate, eop                35.4       33.8   32.3   30.1   28.0




   Source: UFG                                                                 22
                           Investment Case: Russia
                           Russia’s Cost of Capital Falling
                                                                                              Latest:
                                                                                              31st Dec 03 EMBI + 384.637
                                                                                              13th Jan 04 EMBI + 367.025
                                                  EMBI+ spread          EMBI+ Russia Spread
                                                                                              Latest:
                1,600
                                                                                              31st Dec 03 EMBI + Russia 255.899
                1,400                                                                         13th Jan 04 EMBI + Russia 240.493

                1,200
Spread, basis




                1,000

                 800

                 600

                 400

                 200

                  -
                  Au -02
                  Au 0 0




                  Au 0 1




                  Au -0 3
                  Ap 00




                  Fe 00
                  Ap 01




                  Fe 01
                  Ap 02




                  Fe 02
                  Ap 03




                          3
                  D 00




                  D 01




                  D 2




                  D 3
                  O 0




                  O 1




                  O 2




                  O 3
                  Ju 0




                  Ju 1




                 J u -02




                  Ju 3




                       -0
                       -0




                       -0
                        0




                        0




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                        0




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                        Source: Brunswick UBS Warburg – 31st December 2003                                                   23
                 Investment Case: Russia
                Credit Fundamentals vs Investment Grade Issuers


                                                     Russia’s investment grade     BBB Rated Issuers*
                                                       credit fundamentals

                                                             2001           2004       2001        2005F
Gross External Debt (% of GDP)                              48.6%          25.5%      50.0%        57.1%

GDP growth, %                                                5.0%           4.8%       2.8%         4.5%

Consolidated fiscal balance, %                               2.9%           0.6%      -5.3%        -4.1%
GDP
Current account balance, % GDP                              11.3%           2.6%      -5.1%        -3.4%

* Slovakia/Poland/Croatia Average




             Source: CSFB Dec 2003 / CAIB Oct 2003                                                      24
Investment Case: Russia
Valuations Compelling
                                              03 EV/EBITDA   P/E 03   04 EV/EBITDA   P/E 04

Oil & Gas                                         4.5         6.6         4.5         7.6

Emerging Markets Average                          5.5         10.4        5.7         11.4
Developed Markets Average                         5.9         12.9        5.8         13.6


Power Utilities                                   6.0         24.8        5.0         41.1

Emerging Markets Average                          7.7         21.3        7.6         12.0

Developed Markets Average                         9.1         14.2        8.1         13.4


Metals                                            6.1         11.4        4.6         8.6

International Average                             11.8        26.8        10.8        17.3



Wireless Telecommunications                       7.2         15.4        5.5         10.3

Developed Markets Average                         10.0        19.0        8.0         15.2

Emerging Markets Average                          7.0         20.2        5.5         14.4



Source: Brunswick UBS Warburg 31st Dec 2003                                                   25
               Investment Case: Russia
               Attractive Valuations

               Economic performance not reflected in valuation multiples
                               Emerging Market GDP Growth & Equity Valuations
               25


                                    Israel
               20


                                                             Taiwan
2003 (e) P/E




               15
                                                                      Singapore
                                              Mexico                     Philippines
                                              South Africa                     Turkey
               10
                                                                       Hungary
                                                                                                             China
                                                                                          South Korea
                5
                                                   Brazil                                           Russia


                0
                    0.0       1.0            2.0            3.0          4.0            5.0       6.0        7.0     8.0

                                                      2002-04 (e) Avg real GDP growth %

           Source: Brunswick UBS Warburg                                                                                   26
Investment Case: Russia
Summary


    ! Progress on structural reforms
    ! Strong economic fundamentals
    ! Attractive valuations




     Strong Investment Opportunity




                                       27
Investment Process
                      Total Universe
                         c.1,250 companies
                      Liquidity screening


                   Investable Universe
                         c.150 companies
      Quality screening via company visits and fundamental
                              review


                     Focus stock list
                Quarterly management meeting
                Detailed fundamental research


                     Macroeconomic
                        overlay

                          Portfolio
                          20-25 positions


                                                             28
US Global Investors Eastern Europe Fund (EUROX)


Stockname                                       Model Weighting            Index Weighting*    Load
OTP Bank                                                      0.00%                  8.53%    -8.53%
Gazprom                                                       3.53%                  1.62%    1.91%
Lukoil                                                        2.81%                  9.60%    -6.79%
Surgutneftegas                                                1.53%                  6.09%    -4.56%
Sberbank                                                      5.44%                  0.00%    5.44%
PKN                                                           0.00%                  5.53%    -5.53%
MOL                                                           0.00%                  5.04%    -5.04%
Matav                                                         0.00%                  4.97%    -4.97%
Cesky Telecom                                                 7.25%                  2.58%    4.67%
Sibneft                                                       4.78%                  0.00%    4.78%

•MSCI Eastern European Index (Russia @30% market cap weighted) 31 December 2003
Source: Charlemagne Capital / MSCI




                                                                                                 29
                     US Global Investors Eastern Europe Fund (EUROX)


                                                                                                                        Like Russia

Reduced to Zero                                         Geographic Allocation - 31 Dec 2003
                                                                Model Weighting             MSCI Weighting

              50.00%


              40.00%


              30.00%


              20.00%


              10.00%


                  0.00%
                              Czech                     Hungary                      Poland                  Russia   Others




                          * MSCI Eastern European Index (Russia @30% market cap weighted) 31 December 2003
                            Source: Charlemagne Capital / MSCI
                                                                                                                                30
              US Global Investors Eastern Europe Fund (EUROX)


Underweight
    oils
                                                             Sector Allocation - 31 Dec 2003
          40.00%                                               Model Weighting            MSCI Weighting                Overweight
                                                                                                                          Telcos
          35.00%

          30.00%

          25.00%

          20.00%

          15.00%

          10.00%

              5.00%

              0.00%
                         Energy       Materials     Industrials   Consumer Health Care Financials Technology Telecoms   Utilities




                      * MSCI Eastern European Index (Russia @30% market cap weighted) 31 December 2003
                        Source: Charlemagne Capital / MSCI
                                                                                                                                    31
               Investment Process
               Special Situations Case Study – Sibir Energy

               !     Undiscovered Russian oil company
               !     AIM listed, followed by only one specialist broker
               !     Charlemagne Capital has been researching Sibir for three years
               !     Conditions for investment only met in the last six months

                                                                       Value of reserves on a per barrel basis
Sibneft
                             Upside to Price Target 15%                               Sibir   Sibneft

Medium Risk                                                     3.50


                                                                3.00


Sibir Energy                                                    2.50

                             Upside to Price Target 53%
High Risk                                                       2.00


                                                                1.50
                                                          USD
                                                                1.00


                                                                0.50

                   Source: Charlemagne Capital                                                                    32
                                                                0.00
                                                                              Sibir                     Sibneft
                                                           Investment Case: Russia
                                                           Attractive Valuations

         Key portfolio position Gazprom attractive relative to global peers
         Valuation discounts significant despite much higher growth prospects



                                                            EV/Res $/boe                                                                                                                P/E 2004 (e)
                                                                                                                                    25.0
12.00

10.00                                                                                                                               20.0

 8.00
                                                                                                                                    15.0

 6.00                                                                                                                         P/E
                                                                                                                                    10.0
 4.00
                                                                                                                                     5.0
 2.00

 0.00                                                                                                                                0.0




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                                                                       Source: Brunswick UBS Warburg – 31st Dec 2003 / UFG – 25th Nov 2003                                                                                                            33
                                                                          Investment Case: Russia
                                                                            Attractive Valuations
                                                                          Key portfolio positions MTS / Vimpelcom benefiting from very rapid subscriber growth


                                                                Subscriber growth 03 / 04                                                   Russia Cellular Growth Forecasts
                                                                                                                                          Moscow          St Petersburg     Regions           Penetration
                                          25%                                                                            60                                                                                 36%      40%
                                                                                                   Vimpe lCom
2004E s ubscribe r growth, % chg. y-o-y




                                                                                                                                                                                                   31%               35%
                                                                                                                         50
                                          20%
                                                                                                                                                                                                                     30%
                                                                                                       MTS                                                                            25%
                                                                                                                         40
                                                                                                                                                                                                                     25%
                                          15%
                                                                                                                                                                          19%
                                                                                  China Mobile                        mn 30                                                                                          20%

                                          10%              Te le s p    Digi.c om                                                                               13%                                                  15%
                                                                                                                         20
                                                               Turkc e ll
                                                               MTN Group                                                                                                                                             10%
                                          5%                                                                                                       6%
                                                         P a rtne r C.                                                   10
                                                                                                                                     2%                                                                              5%
                                                                                                                              1%
                                                     Voda fone Libe rte l
                                          0%                                                                              0                                                                                          0%
                                                0%    5%        10%         15%       20%       25%     30%     35%           1999   2000          2001        2002       2003F       2004F        2005F    2006F

                                                        2003E s ubs cribe r growth, % chg. y-o-y




                                                                       Source: Brunswick UBS Warburg                                                                                                                34
                   Investment Case: Russia
                     Reform Case Study – Sberbank
                                                                              Banking Sector Development (2003 as % of GDP)
                                                          120%
                                                                                                  110%
!    Banking sector development will improve as                        100%
                                                          100%
     banking reform is enacted                                                                                                EU     Hungary
                                                          80%

!    Sberbank, as the leading savings bank with
     widespread presence, will benefit                    60%

                                                                                                                               40%
                                                          40%                                              36%
!    Creation of “blessed shares” widens shareholder                            24%

     base and should encourage greater awareness          20%
                                                                                                                                         8%

     amongst foreign investors                                0%

                                                                    Household Deposits         Private Sector Loans            Mortgages




                                        P/E                        P/BV                                               ROE
                             2003              2004E   2003                   2004E                   2003                    2004E
    Sberbank               6.80                6.49    1.30                   1.09                   20.9%                    18.3%
    OTP Bank               8.84                8.31    2.65                   2.15                   0.16%                    0.13%
    Bank Pekao             18.3                13.5    2.57                   2.35                   3.82%                    4.70%

               Source: Brunswick UBS Warburg                                                                                                   35
    3-Year Fund Performance

                                          Monthly Growth of $10,000
                         US Global Accolade Fds:Eastern European Fund
    28,000


    24,000

$
    20,000
A
m
    16,000
o
u
n   12,000
t

     8,000


     4,000
             12/00                                12/01                                 12/02           12/03
                                                                Final Amount
                     US Glov Acc:East Euro $25,937                    S&P 500 w/Div $8,834
                     Regional Avg $20,292                             International Equity Avg $9,878



                                                                                                                36
              Source: Steele, January 2004 Beta used is1 year historic to end Dec 03.
    5-Year Fund Performance

                                         Monthly Growth of $10,000
                         US Global Accolade Fds:Eastern European Fund
    28,000


    24,000

$
    20,000
A
m
    16,000
o
u
n   12,000
t

     8,000


     4,000
             12/98                12/99                  12/00          12/01                 12/02     12/03
                                                             Final Amount

                     US Glov Acc:East Euro $26,434                   S&P 500 w/Div $9,720
                     Regional Avg $19,950                            International Equity Avg $12,279



                                                                                                                37
             Source: Steele, January 2004 Beta used is1 year historic to end Dec 03.
                                                 Thank You!
                                         For more complete information about the
                                              Eastern European Fund (EUROX)
 or any U.S. Global fund, including charges and expenses, obtain a prospectus by
  visiting us at http://www.usfunds.com/ or call 1-800-US-FUND. Read it carefully
   before you invest or send money. Distributed by U. S. Global Brokerage, Inc.
The Eastern European Fund’s share price is expected to be more volatile than those of funds only invested in domestic securities. The fund may invest in private
placements and IPO’s, which may significantly affect performance. There is no guarantee that these high-risk investments will have the same effect on the fund’s
performance if they are made in the future. Foreign and emerging market investing involves special risks such as currency fluctuation and less public disclosure, as
well as economic and political risk. This article should not be considered a recommendation for the securities of any company mentioned.
The Eastern European Fund's total annualized returns for the 1-year, 5-year and since inception periods are 109.88%, 27.43% and 15.72%, respectively, as of
3/31/04. Inception date is 03/31/97.
The S&P 500 Stock Index's total annualized returns for the 1-, 5- and 10-year periods are 35.01%, -1.20%, and 11.67%, respectively, as of 3/31/04.
The S&P 500 Stock Index is a widely recognized capitalization-weighted index of 500 common stock prices in U.S. companies.
The MSCI Emerging Markets Eastern European Index (Russia at 30 percent market-cap weighted) is a capitalization-weighted index that monitors the performance
of emerging market stocks from all countries that make up the Eastern European Region.
Holdings as a percentage of net assets as of 3/31/04 :
China Region Opportunity Fund: China Mobile (0.52%), CNOOC (0.92%), PetroChina (1.96%)
Eastern European Fund: Bank Pekao (2.85%), Cesky Telecom (6.83%), Gazprom (2.42%), Mobil Telesystems (4.16%), OTP Bank (4.78%), Sberbank RF - $US
(5.93%), Sibir Energy (4.02%), Sibneft – Sponsored ADR (4.14%), Surgutneftgas Common (1.87%), Vimpel Communications (4.28%), Yukos Oil (2.10%)
Global Resources Fund: CNOOC (0.90%), Gazprom (0.63%), PetroChina (0.86%)
MegaTrends Fund: Chevron Texaco (1.31%), PetroChina (3.17%)
Although mentioned none of the following companies are held in any U.S. Global Investors' Fund: BP, Digi.com, Exxon Mobil, Lukoil, Matav, MOL, MTN Group,
Partner C, PetroBras, PKN Orlen, Repsol YPF, Royal Dutch Shell, Telesp, TotalFinaElf, Turkcell, Vodafone Libertel                                         38