Midas Fund increased its overall investment in quality precious metals and natural resource companies, eliminating its short sale positions. The Fund also reduced exposure to a large South African producing company as market euphoria took its shares past Midas Fund’s target price. The Fund’s exposure to base metal companies depressed returns in the general equity market sell-off. Currently aggressively leveraged, Midas Fund’s returns have reflected volatile market conditions. As gold enters a seasonally supportive period, the Fund will be seeking further opportunities to enhance returns by maintaining its leveraged portfolio of strong companies at attractive valuations. Midas continues to emphasize mining companies offering promising exploration potential, expanding production profiles, increasing cash flow, and/or other special growth features.

Midas Special Fund kept a steady course with leverage during the recent market fluctuations. Similarly, the Fund maintained its strategy of holding quality blue chips and other well known companies, including the stocks of some of the strongest global companies in insurance, business services, and information retrieval. Generally, the Fund seeks quality companies with unique combinations of strength in operations, products, and finances, offering growth and value. The Fund may employ speculative investment techniques such as borrowing money for investment purposes, a practice known as leveraging, and may also invest defensively. Over the course of future market fluctuations, the Fund may seek opportunities to use its flexible investment strategy to enhance returns or seek a defensive investment position.

Midas Perpetual Portfolio seeks to preserve and increase the "purchasing power" value of its shares over the long term. The investment strategy of the Fund acknowledges a broad range of economic possibilities and seeks to incorporate investments appropriate for each of them. Investors who wish to invest all or a portion of their capital in a way that does not depend on any particular outcome for the economy should consider purchasing shares in the Fund. Designed to provide growth at lower risk, the Fund’s all weather approach makes it an attractive vehicle for a program of steady monthly investing. In pursuit of its investment objective, the Fund invests a fixed "Target Percentage" of its total assets in each of the following categories: gold; silver; Swiss franc assets; hard asset securities; large capitalization growth stocks; and dollar assets.