RIMCO MONUMENT FUNDS, 497, 1995-06-28

RIMCO MONUMENT FUNDS
497, 1995-06-28

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RIMCO MONUMENT FUNDS
COMBINED PROSPECTUS

RIMCO Monument Funds (the "Trust"), an open-end management investment company (a
mutual fund), offers investors interests in the following five separate
investment portfolios (the "Funds"), each having a distinct investment objective
and policies:

- RIMCO Monument U.S. Treasury Money Market Fund;

- RIMCO Monument Prime Money Market Fund;

- RIMCO Monument Bond Fund;

- RIMCO Monument Stock Fund; and

- RIMCO Monument Small Capitalization Equity Fund.

The investment adviser to the Funds is Riggs Investment Management Corp.
(RIMCO), a subsidiary of The Riggs National Bank of Washington, D.C. Federated
Securities Corp. is the distributor. This combined prospectus contains the
information you should read and know before you invest in any of the Funds in
the Trust. Keep this prospectus for future reference.

Additional information about the Trust is contained in the Trust's combined
Statement of Additional Information dated June 30, 1995 which has also been
filed with the Securities and Exchange Commission. The information contained in
the combined Statement of Additional Information is incorporated by reference
into this prospectus. You may request a copy of the Statement of Additional
Information free of charge, obtain other information, or make inquiries about
any of the Funds by writing to the Trust or calling 1-800-934-3883.

THE SHARES OFFERED BY THIS PROSPECTUS ARE NOT FDIC INSURED AND ARE NOT DEPOSITS
OR OBLIGATIONS OF OR GUARANTEED BY THE RIGGS NATIONAL BANKS. INVESTMENT IN THESE
SHARES INVOLVES INVESTMENT RISKS, INCLUDING THE POSSIBLE LOSS OF THE PRINCIPAL
AMOUNT INVESTED.

THE PRIME MONEY MARKET FUND AND U.S. TREASURY MONEY MARKET FUND ATTEMPT TO
MAINTAIN A STABLE NET ASSET VALUE OF $1.00 PER SHARE, BUT THERE IS NO ASSURANCE
THAT THESE FUNDS WILL BE ABLE TO DO SO.

THESE SECURITIES HAVE NOT BEEN APPROVED OR DISAPPROVED BY THE SECURITIES AND
EXCHANGE COMMISSION OR ANY STATE SECURITIES COMMISSION NOR HAS THE SECURITIES
AND EXCHANGE COMMISSION OR ANY STATE SECURITIES COMMISSION PASSED UPON THE
ACCURACY OR ADEQUACY OF THIS PROSPECTUS. ANY REPRESENTATION TO THE CONTRARY IS A
CRIMINAL OFFENSE.

Prospectus dated June 30, 1995

TABLE OF CONTENTS
- --------------------------------------------------------------------------------

SYNOPSIS 1
- ------------------------------------------------------

EXPENSES OF THE FUNDS 3
- ------------------------------------------------------

FINANCIAL HIGHLIGHTS 6
- ------------------------------------------------------

PERFORMANCE INFORMATION 11
- ------------------------------------------------------

OBJECTIVE OF EACH FUND 11
- ------------------------------------------------------

U.S. Treasury Money Market Fund 11
Prime Money Market Fund 12
Bond Fund 15
Stock Fund 17
Small Capitalization Fund 18

PORTFOLIO INVESTMENTS AND STRATEGIES 20
- ------------------------------------------------------

Borrowing Money 20
Diversification 20
Restricted and Illiquid Securities 20
Investing in New Issuers 21
Repurchase Agreements 21
When-Issued and Delayed
Delivery Transactions 21
Lending of Portfolio Securities 21
Convertible Securities 22
U.S. Government Securities 22
Equity Investment Considerations
and Risk Factors 22
Put and Call Options 23
Futures and Options on Futures 23
Investing in Securities of Other
Investment Companies 24
Demand Master Notes 24
Foreign Investments 25
Temporary Investments 25

RIMCO MONUMENT FUNDS INFORMATION 25
- ------------------------------------------------------

Management of RIMCO Monument Funds 25
Distribution of Shares of the Funds 27
Administration of the Funds 27

NET ASSET VALUE 27
- ------------------------------------------------------

INVESTING IN THE FUNDS 28
- ------------------------------------------------------

Share Purchases 28
Minimum Investment Required 29
What Shares Cost 29
Systematic Investment Program 32
Retirement Plans 32
Certificates and Confirmations 32
Dividends 32
Capital Gains 33

EXCHANGES 33
- ------------------------------------------------------

REDEEMING SHARES 33
- ------------------------------------------------------

Systematic Withdrawal Program 35
Accounts with Low Balances 35

SHAREHOLDER INFORMATION 36
- ------------------------------------------------------

Voting Rights 36
Massachusetts Partnership Law 36

EFFECT OF BANKING LAWS 36
- ------------------------------------------------------

TAX INFORMATION 37
- ------------------------------------------------------

Federal Income Tax 37

ADDRESSES 38
- ------------------------------------------------------

SYNOPSIS
- --------------------------------------------------------------------------------

The Trust, an open-end management investment company, was established as a
Massachusetts business trust under a Declaration of Trust dated April 1, 1991.
The Declaration of Trust permits the Trust to offer separate series of shares of
beneficial interest representing interests in separate portfolios of securities.
The shares of any one portfolio may be offered in separate classes. The Funds
are designed for customers of financial institutions such as banks, fiduciaries,
custodians of public funds and investment advisers.

As of the date of this prospectus, the Trust is comprised of the following five
Funds:

- RIMCO Monument U.S. Treasury Money Market Fund ("U.S. Treasury Money
Market Fund")--seeks to provide current income consistent with stability
of principal and liquidity by investing in U.S. Treasury obligations;

- RIMCO Monument Prime Money Market Fund ("Prime Money Market Fund" and
together with the U.S. Treasury Money Market Fund, the "Money Market
Funds")--seeks to provide current income consistent with stability of
principal and liquidity by investing exclusively in a portfolio of money
market instruments maturing in 13 months or less;

- RIMCO Monument Bond Fund ("Bond Fund")--seeks to achieve current income
by investing in a diversified portfolio of investment grade securities and
will attempt to maintain an average weighted portfolio maturity of between
five and ten years;

- RIMCO Monument Stock Fund ("Stock Fund")--seeks to provide growth of
capital and income primarily through equity investments such as common
stocks and securities convertible into common stocks; and

- RIMCO Monument Small Capitalization Equity Fund ("Small Capitalization
Fund")--seeks to provide long-term capital appreciation through equity
securities of companies that have a market value capitalization of up to
$1 billion.

For information on how to purchase shares of any of the Funds please refer to
"Investing in the Funds." In most cases, a minimum initial investment of $2,500
is required for each Fund. In most cases, subsequent investments must be in
amounts of at least $100. See "Minimum Investment Required." Shares of the Money
Market Funds are sold at net asset value without a sales charge. Shares of the
Bond, Stock and Small Capitalization Funds are sold at net asset value plus a
maximum sales charge of 3.50%, which may be reduced as discussed under "What
Shares Cost." Shares of each Fund are redeemed at net asset value. Information
on redeeming shares may be found under "Redeeming Shares." The Funds are advised
by Riggs Investment Management Corp.

RISK FACTORS. Investors should be aware of the following general considerations.
The market value of fixed-income securities, which constitute a major part of
the investments of several Funds, may vary inversely in response to changes in
prevailing interest rates. The market value of the equity securities in which
some of the Funds invest will also fluctuate, and the possibility exists that
the value of common stocks could decline over short or even extended periods of
time. The section entitled "Equity Investment Considerations and Risk Factors"
also discloses the potential risks related to small
capitalization stocks. The foreign securities in which several Funds may invest
may be subject to certain risks in addition to those inherent in U.S.
investments. One or more Funds may make certain investments and employ certain
investment techniques that involve other risks, including entering into
repurchase agreements, lending portfolio securities and entering into futures
contracts and related options as hedges. These risks and those associated with
investing in mortgage-backed securities, when-issued securities, options and
variable rate securities are described under "Objective of Each Fund" and
"Portfolio Investments and Strategies."

EXPENSES OF THE FUNDS--MONEY MARKET FUNDS
- --------------------------------------------------------------------------------

<TABLE>
<S> <C>
SHAREHOLDER TRANSACTION EXPENSES
Maximum Sales Load Imposed on Purchases (as a percentage of offering price)................... None
Maximum Sales Load Imposed on Reinvested Dividends (as a percentage of offering price)........ None
Contingent Deferred Sales Charge (as a percentage of original purchase price or
redemption proceeds, as applicable)......................................................... None
Redemption Fees (as a percentage of amount redeemed, if applicable)........................... None
Exchange Fee.................................................................................. None

ANNUAL FUND OPERATING EXPENSES
(As a percentage of average net assets)
</TABLE>

<TABLE>
<CAPTION>
U.S.
TREASURY PRIME
MONEY MARKET MONEY MARKET
FUND FUND
------------ ------------
<S> <C> <C>
Management Fee (after waiver)........................................ 0.30%(1) 0.31%(2)
12b-1 Fee............................................................ None None
Total Other Expenses................................................. 0.30% 0.19%
Total Fund Operating Expenses(3)................................. 0.60% 0.50%
</TABLE>

(1) The management fee of the U.S. Treasury Money Market Fund has been reduced
to reflect the voluntary waiver by the investment adviser. The adviser can
terminate this voluntary waiver of expenses at any time at its sole discretion.
The maximum management fee is 0.50%.

(2) The management fee of the Prime Money Market Fund has been reduced to
reflect the anticipated voluntary waiver by the investment adviser. The adviser
can terminate this voluntary waiver of expenses at any time at its sole
discretion. The maximum management fee is 0.50%.

(3) The Annual Fund Operating Expenses for the fiscal year ended April 30, 1995
were 0.60% for the U.S. Treasury Money Market Fund, and 0.44% for the Prime
Money Market Fund. Absent voluntary waiver of the management fees as described
in note one above, the Annual Fund Operating Expenses were 0.80% for the U.S.
Treasury Money Market Fund, and 0.68% for the Prime Money Market Fund.

THE PURPOSE OF THIS TABLE IS TO ASSIST THE INVESTOR IN UNDERSTANDING THE
VARIOUS COSTS AND EXPENSES THAT A SHAREHOLDER IN THE FUNDS WILL BEAR, EITHER
DIRECTLY OR INDIRECTLY. FOR MORE COMPLETE DESCRIPTIONS OF THE VARIOUS COSTS AND
EXPENSES, SEE "RIMCO MONUMENT FUNDS INFORMATION." Wire-transferred redemptions
of less than $5,000 or in excess of one per month may be subject to additional
fees.

<TABLE>
<CAPTION>
U.S.
TREASURY PRIME
MONEY MARKET MONEY MARKET
EXAMPLE FUND FUND
- --------------------------------------------------------------------- ------------ ------------
<S> <C> <C>
You would pay the following expenses on a $1,000 investment assuming
(1) 5% annual return; (2) redemption at the end of each time period.
1 Year............................................................ $ 6 $ 5
3 Years........................................................... $ 19 $ 16
5 Years........................................................... $ 33 $ 28
10 Years........................................................... $ 75 $ 63
</TABLE>

THE ABOVE EXAMPLE SHOULD NOT BE CONSIDERED A REPRESENTATION OF PAST OR
FUTURE EXPENSES. ACTUAL EXPENSES MAY BE GREATER OR LESS THAN THOSE SHOWN.

EXPENSES OF THE FUNDS--BOND FUND AND STOCK FUND
- --------------------------------------------------------------------------------

<TABLE>
<S> <C>
SHAREHOLDER TRANSACTION EXPENSES
Maximum Sales Load Imposed on Purchases (as a percentage of offering price)......... 3.50%
Maximum Sales Load Imposed on Reinvested Dividends (as a percentage of offering
price)............................................................................ None
Contingent Deferred Sales Charge (as a percentage of original purchase price or
redemption proceeds, as applicable)............................................... None
Redemption Fees (as a percentage of amount redeemed, if applicable)................. None
Exchange Fee........................................................................ None

ANNUAL FUND OPERATING EXPENSES
(As a percentage of average net assets)
</TABLE>

<TABLE>
<CAPTION>
BOND FUND STOCK FUND
--------- ----------
<S> <C> <C>
Management Fee (after waiver)(1).................................. 0.35% 0.61%
12b-1 Fee......................................................... None... None
Total Other Expenses.............................................. 0.45% 0.37%
Total Fund Operating Expenses(2)............................. 0.80% 0.98%
</TABLE>

(1) The management fee of each Fund has been reduced to reflect the voluntary
waiver by the investment adviser. The adviser can terminate this voluntary
waiver of expenses at any time at its sole discretion. With respect to each Fund
the maximum management fee is 0.75%.

(2) The Annual Fund Operating Expenses for the fiscal year ended April 30, 1995
were 0.80% for the Bond Fund, and 0.98% for the Stock Fund. Absent voluntary
waiver of the management fees as described in note one above, the Annual Fund
Operating Expenses were 1.20% for the Bond Fund, and 1.12% for the Stock Fund.

<TABLE>
<CAPTION>
EXAMPLE BOND FUND STOCK FUND
- ------------------------------------------------------------------ --------- ----------
<S> <C> <C>
You would pay the following expenses on a $1,000 investment
assuming (1) 5% annual return; (2) redemption at the end of each
time period; and (3) payment of the maximum sales load of 3.50%.
As noted in the table above, the Funds charge no contingent
deferred sales charge.
1 Year......................................................... $ 43 $ 45
3 Years........................................................ $ 60 $ 65
5 Years........................................................ $ 78 $ 87
10 Years........................................................ $ 131 $151
</TABLE>

THE ABOVE EXAMPLE SHOULD NOT BE CONSIDERED A REPRESENTATION OF PAST OR
FUTURE EXPENSES. ACTUAL EXPENSES MAY BE GREATER OR LESS THAN THOSE SHOWN.

EXPENSES OF THE FUNDS--SMALL CAPITALIZATION FUND
- --------------------------------------------------------------------------------

ANNUAL FUND OPERATING EXPENSES*
(As a percentage of projected average net assets)
Management Fee (after waiver)(1).................................................... 0.00%
12b-1 Fee........................................................................... None
Total Other Expenses................................................................ 1.06%
Total Fund Operating Expenses(2),(3)........................................... 1.06%
</TABLE>

(1) The estimated management fee has been reduced to reflect the anticipated
voluntary waiver by the investment adviser. The adviser can terminate this
voluntary waiver of expenses at any time at its sole discretion. The maximum
management fee is 0.80%.

(2) The Total Fund Operating Expenses are estimated to be 1.86% absent the
anticipated voluntary waiver of the management fee, as described in note one
above.

(3) For the period from February 27, 1995 to April 30, 1995, the total Fund
Operating Expenses were 1.66%.

* Total Fund Operating Expenses are estimated based on average expenses expected
to be incurred during the period ending April 30, 1996. During the course of
this period, expenses may be more or less than the average amount shown above.

<TABLE>
<CAPTION>
EXAMPLE 1 year 3 years
- --------------------------------------------------------------------------- ------ -------
<S> <C> <C>
You would pay the following expenses on a $1,000 investment assuming (1) 5%
annual return; (2) redemption at the end of each time period; and (3)
payment of the maximum sales load of 3.50%. As noted in the table above,
the Funds charge no contingent deferred sales charge....................... $45 $68
</TABLE>

THE ABOVE EXAMPLE SHOULD NOT BE CONSIDERED A REPRESENTATION OF PAST OR
FUTURE EXPENSES. ACTUAL EXPENSES MAY BE GREATER OR LESS THAN THOSE SHOWN.

RIMCO MONUMENT U.S. TREASURY MONEY MARKET FUND

FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
(FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD)

The following table has been audited by Ernst & Young LLP, the Trust's
independent auditors. Their report dated June 9, 1995, on the Trust's financial
statements for the year ended April 30, 1995, is included in the combined Annual
Report, which is incorporated herein by reference. This table should be read in
conjunction with the Fund's financial statements and notes thereto, which may be
obtained free of charge from the Trust.

<TABLE>
<CAPTION>
YEAR ENDED APRIL 30,
----------------------------------------
1995 1994 1993 1992(A)
------ ------ ------ -------
<S> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD $ 1.00 $ 1.00 $ 1.00 $ 1.00
- ------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS
- ------------------------------------------------
Net investment income 0.04 0.03 0.03 0.02
- ------------------------------------------------ ------ ------ ------ -------
LESS DISTRIBUTIONS
- ------------------------------------------------
Distributions from net investment income (0.04) (0.03) (0.03) (0.02)
- ------------------------------------------------ ------ ------ ------ -------
NET ASSET VALUE, END OF PERIOD $ 1.00 $ 1.00 $ 1.00 $ 1.00
- ------------------------------------------------ ------ ------ ------ -------
TOTAL RETURN(B) 4.39% 2.64% 2.92% 2.37%
- ------------------------------------------------
RATIOS TO AVERAGE NET ASSETS
- ------------------------------------------------
Expenses 0.60% 0.56% 0.52% 0.41%(c)
- ------------------------------------------------
Net investment income 4.33% 2.61% 2.86% 4.08%(c)
- ------------------------------------------------
Expense waiver/reimbursement(d) 0.20% 0.16% 0.29% 0.42%(c)
- ------------------------------------------------
SUPPLEMENTAL DATA
- ------------------------------------------------
Net assets, end of period (000 omitted) $81,089 $106,948 $86,875 $51,039
- ------------------------------------------------
</TABLE>

(a) Reflects operations for the period from October 8, 1991 (date of initial
public investment) to April 30, 1992.

(b) Based on net asset value, which does not reflect the sales load or
contingent deferred sales charge, if applicable.

(d) This voluntary expense decrease is reflected in both the expense and net
investment income ratios shown above.

(See Notes which are an integral part of the Financial Statements)

RIMCO MONUMENT PRIME MONEY MARKET FUND

FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
(FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD)

<TABLE>
<CAPTION>
YEAR ENDED APRIL 30,
---------------------------------------------
1995 1994 1993 1992(A)
------ ------ ------ -------
<S> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD $ 1.00 $ 1.00 $ 1.00 $ 1.00
- ---------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS
- ---------------------------------------------------
Net investment income 0.047 0.03 0.04 0.03
- ---------------------------------------------------
Net realized loss on investments (0.003) -- -- --
- --------------------------------------------------- ------ ------ ------ -------
Total from investment operations 0.044 0.03 0.04 0.03
- ---------------------------------------------------
LESS DISTRIBUTIONS
- ---------------------------------------------------
Distributions from net investment income (0.047) (0.03) (0.04) (0.03)
- ---------------------------------------------------
CAPITAL CONTRIBUTION 0.003 -- -- --
- --------------------------------------------------- ------ ------ ------ -------
NET ASSET VALUE, END OF PERIOD $ 1.00 $ 1.00 $ 1.00 $ 1.00
- --------------------------------------------------- ------ ------ ------ -------
TOTAL RETURN(B) 4.84%(c) 3.08% 3.55% 2.90%
- ---------------------------------------------------
RATIOS TO AVERAGE NET ASSETS
- ---------------------------------------------------
Expenses 0.44% 0.43% 0.41% 0.27%(d)
- ---------------------------------------------------
Net investment income 4.72% 3.02% 3.46% 4.56%(d)
- ---------------------------------------------------
Expense waiver/reimbursement(e) 0.24% 0.28% 0.31% 0.47%(d)
- ---------------------------------------------------
SUPPLEMENTAL DATA
- ---------------------------------------------------
Net assets, end of period (000 omitted) $284,059 $334,765 $277,267 $111,329
- ---------------------------------------------------
</TABLE>

(a) Reflects operations for the period from September 17, 1991 (date of initial
public investment) to April 30, 1992.

(b) Based on net asset value, which does not reflect the sales load or
contingent deferred sales charge, if applicable.

(d) Computed on an annualized basis.

(e) This voluntary expense decrease is reflected in both the expense and net
investment income ratios shown above.

(See Notes which are an integral part of the Financial Statements)

RIMCO MONUMENT BOND FUND

FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
(FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD)

<TABLE>
<CAPTION>
YEAR ENDED APRIL 30,
-----------------------------
1995 1994 1993(A)
------ ------ -------
<S> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD $ 9.46 $10.40 $10.00
- --------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS
- --------------------------------------------------------------------
Net investment income 0.56 0.53 0.60
- --------------------------------------------------------------------
Net realized and unrealized gain (loss) on investments (0.11) (0.38) 0.66
-----
- -------------------------------------------------------------------- ------ ------
Total from investment operations 0.45 0.15 1.26
- --------------------------------------------------------------------
LESS DISTRIBUTIONS
- --------------------------------------------------------------------
Distributions from net investment income (0.56) (0.53) (0.60)
- --------------------------------------------------------------------
Distributions from net realized gains -- (0.56) (0.26)
-----
- -------------------------------------------------------------------- ------ ------
Total distributions (0.56) (1.09) (0.86)
-----
- -------------------------------------------------------------------- ------ ------
NET ASSET VALUE, END OF PERIOD $ 9.35 $ 9.46 $10.40
-----
- -------------------------------------------------------------------- ------ ------
TOTAL RETURN(B) 5.01% 1.10% 12.93%
- --------------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS
- --------------------------------------------------------------------
Expenses 0.80% 0.68% 0.50%(c)
- --------------------------------------------------------------------
Net investment income 6.06% 5.15% 5.95%(c)
- --------------------------------------------------------------------
Expense waiver/reimbursement(d) 0.40% 0.48% 0.65%(c)
- --------------------------------------------------------------------
SUPPLEMENTAL DATA
- --------------------------------------------------------------------
Net assets, end of period (000 omitted) $46,820 $47,552 $44,668
- --------------------------------------------------------------------
Portfolio turnover 262% 344% 371%
- --------------------------------------------------------------------
</TABLE>

(a) Reflects operations for the period from May 11, 1992 (date of initial public
investment) to April 30, 1993.

(b) Based on net asset value, which does not reflect the sales load or
contingent deferred sales charge, if applicable.

(d) This voluntary expense decrease is reflected in both the expense and net
investment income ratios shown above.

(See Notes which are an integral part of the Financial Statements)

Further information about the Fund's performance is contained in the Trust's
Annual Report dated April 30, 1995, which can be obtained free of charge.

RIMCO MONUMENT STOCK FUND

FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
(FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD)

<TABLE>
<CAPTION>
YEAR ENDED APRIL 30,
-----------------------------
1995 1994 1993(A)
------ ------ -------
<S> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD $11.89 $10.46 $10.00
- --------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS
- --------------------------------------------------------------------
Net investment income 0.20 0.16 0.21
- --------------------------------------------------------------------
Net realized and unrealized gain on investments 1.39 1.44 0.46
- -------------------------------------------------------------------- ------ ------ -------
Total from investment operations 1.59 1.60 0.67
- --------------------------------------------------------------------
LESS DISTRIBUTIONS
- --------------------------------------------------------------------
Distributions from net investment income (0.19) (0.16) (0.21)
- --------------------------------------------------------------------
Distributions from net realized gains (0.60) (0.01) --
- -------------------------------------------------------------------- ------ ------ ------
Total distributions (0.79) (0.17) (0.21)
- -------------------------------------------------------------------- ------ ------ ------
NET ASSET VALUE, END OF PERIOD $12.69 $11.89 $10.46
- -------------------------------------------------------------------- ------ ------ ------
TOTAL RETURN(B) 14.16% 15.28% 6.35%
- --------------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS
- --------------------------------------------------------------------
Expenses 0.98% 1.00% 0.69%(c)
- --------------------------------------------------------------------
Net investment income 1.66% 1.36% 2.18%(c)
- --------------------------------------------------------------------
Expense waiver/reimbursement(d) 0.14% 0.20% 0.47%(c)
- --------------------------------------------------------------------
SUPPLEMENTAL DATA
- --------------------------------------------------------------------
Net assets, end of period (000 omitted) $66,019 $58,597 $37,539
- --------------------------------------------------------------------
Portfolio turnover 46% 89% 92%
- --------------------------------------------------------------------
</TABLE>

(a) Reflects operations for the period from May 11, 1992 (date of initial public
investment) to April 30, 1993.

(b) Based on net asset value, which does not reflect the sales load or
contingent deferred sales charge, if applicable.

(d) This voluntary expense decrease is reflected in both the expense and net
investment income ratios shown above.

(See Notes which are an integral part of the Financial Statements)

Further information about the Fund's performance is contained in the Trust's
Annual Report dated April 30, 1995, which can be obtained free of charge.

RIMCO MONUMENT SMALL CAPITALIZATION EQUITY FUND

FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
(FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD)

<TABLE>
<CAPTION>
PERIOD ENDED
APRIL 30, 1995(A)
-----------------
<S> <C>
NET ASSET VALUE, BEGINNING OF PERIOD $ 10.00
- --------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS
- --------------------------------------------------------------------------
Net investment income 0.02
- --------------------------------------------------------------------------
Net realized and unrealized gain on investments 0.41
- -------------------------------------------------------------------------- -----------
Total from investment operations 0.43
- -------------------------------------------------------------------------- -----------
NET ASSET VALUE, END OF PERIOD $ 10.43
- -------------------------------------------------------------------------- -----------
TOTAL RETURN(B) 4.30%
- --------------------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS
- --------------------------------------------------------------------------
Expenses 1.66%(c)
- --------------------------------------------------------------------------
Net investment income 0.98%(c)
- --------------------------------------------------------------------------
Expense waiver/reimbursement(d) 1.54%(c)
- --------------------------------------------------------------------------
SUPPLEMENTAL DATA
- --------------------------------------------------------------------------
Net assets, end of period (000 omitted) $7,609
- --------------------------------------------------------------------------
Portfolio turnover 8%
- --------------------------------------------------------------------------
</TABLE>

(a) Reflects operations for the period from February 27, 1995 (date of initial
public investment) to April 30, 1995.

(b) Based on net asset value, which does not reflect the sales load or
contingent deferred sales charge, if applicable.

(d) This voluntary expense decrease is reflected in both the expense and net
investment income ratios shown above.

(See Notes which are an integral part of the Financial Statements)

Further information about the Fund's performance is contained in the Trust's
Annual Report dated April 30, 1995, which can be obtained free of charge.

PERFORMANCE INFORMATION
- --------------------------------------------------------------------------------

From time to time the Bond Fund, the Stock Fund, and the Small Capitalization
Fund may advertise total return and all of the Funds may advertise yield. U.S.
Treasury Money Market Fund and Prime Money Market Fund may also advertise
effective yield.

Total return represents the change, over a specified period of time, in the
value of an investment in a Fund after reinvesting all income and capital gains
distributions. It is calculated by dividing that change by the initial
investment and is expressed as a percentage.

The yields of U.S. Treasury Money Market Fund and Prime Money Market Fund
represent the annualized rate of income earned on an investment in a Fund over a
seven-day period. It is the annualized dividends earned during the period on the
investment, shown as a percentage of the investment. The effective yield is
calculated similarly to the yield, but, when annualized, the income earned on an
investment in a Fund is assumed to be reinvested daily. The effective yield will
be slightly higher than the yield because of the compounding effect of this
assumed reinvestment.

The yield of Bond Fund, Stock Fund, and Small Capitalization Fund is calculated
by dividing the net investment income per share (as defined by the Securities
and Exchange Commission) earned by the Fund over a thirty-day period by the
maximum offering price per share of the Fund on the last day of the period. This
number is then annualized using semi-annual compounding. The yield does not
necessarily reflect income actually earned by the Fund and, therefore, may not
correlate to the dividends or other distributions paid to shareholders.

From time to time, advertisements for the Fund may refer to ratings, rankings,
and other information in certain financial publications and/or compare the
Fund's performance to certain indices.

OBJECTIVE OF EACH FUND
- --------------------------------------------------------------------------------

The investment objective and policies of each Fund appear below. The investment
objective of a Fund cannot be changed without the approval of holders of a
majority of that Fund's shares. While there is no assurance that a Fund will
achieve its investment objective, it endeavors to do so by following the
investment policies described in this prospectus.

Unless indicated otherwise, the investment policies of a Fund may be changed by
the Trustees without approval of shareholders. Shareholders will be notified
before any material change in these policies becomes effective.

Additional information about investment limitations, strategies that one or more
Funds may employ, and certain investment policies mentioned below appear in the
"Portfolio Investments and Strategies" section of this prospectus and in the
combined Statement of Additional Information.

U.S. TREASURY MONEY MARKET FUND

The investment objective of U.S. Treasury Money Market Fund is to provide
current income consistent with stability of principal and liquidity. The Fund
pursues its investment objective by investing its

assets in U.S. Treasury obligations which are issued by the U.S. government, and
are fully guaranteed as to payment of principal and interest by the United
States.

ACCEPTABLE INVESTMENTS. The Fund invests only in U.S. Treasury obligations
maturing in 13 months or less and in repurchase agreements fully collateralized
by U.S. Treasury obligations. See "Repurchase Agreements." The average maturity
of the U.S. Treasury obligations in the Fund's portfolio, computed on a
dollar-weighted basis, will be 90 days or less.

In addition, the Fund may borrow money, lend portfolio securities and engage in
when-issued and delayed delivery transactions. See "Portfolio Investments and
Strategies."

INVESTMENT LIMITATIONS. The Fund's investment limitations are discussed below
under "Borrowing Money" and "Restricted and Illiquid Securities."

PRIME MONEY MARKET FUND

The investment objective of Prime Money Market Fund is to provide current income
consistent with stability of principal and liquidity. The Fund pursues its
investment objective by investing exclusively in a portfolio of money market
instruments maturing in 13 months or less. The average maturity of the money
market instruments in the Fund's portfolio, computed on a dollar-weighted basis,
will be 90 days or less.

ACCEPTABLE INVESTMENTS. The Fund invests in high quality money market
instruments that are either rated in the highest short-term rating category by
nationally recognized statistical rating organizations ("NRSROs") or are of
comparable quality to securities having such ratings. Examples of these
instruments include, but are not limited to:

- domestic issues of corporate or municipal debt obligations, including,
variable rate demand notes;

- commercial paper (including Canadian Commercial Paper and Europaper);

- certificates of deposit, demand and time deposits, savings shares,
bankers' acceptances and other instruments of domestic and foreign banks,
savings and loans and other deposit or thrift institutions ("Bank
Instruments");

- short-term credit facilities;

- obligations issued or guaranteed as to payment of principal and interest
by the U.S. government or one of its agencies or instrumentalities
("Government Securities") (See "Portfolio Investments and Strategies");
and

- other money market instruments.

The Fund invests only in instruments denominated and payable in U.S. dollars.

In addition, the Fund may borrow money, lend portfolio securities, invest in
restricted and illiquid securities, repurchase agreements and variable amount
demand master notes and engage in when-issued and delayed delivery transactions.
See "Portfolio Investments and Strategies."

RATINGS. An NRSRO's highest rating category is determined without regard for
sub-categories and gradations. For example, securities rated A-1 or A-1+ by
Standard & Poor's Ratings Group ("S&P"), Prime-1 by Moody's Investors Service,
Inc. ("Moody's"), or F-1+ or F-1 by Fitch Investors Service, Inc.

("Fitch"), are all considered rated in the highest short-term rating category.
The Fund will follow applicable regulations in determining whether a security
rated by more than one NRSRO can be treated as being in the highest short-term
rating category; currently, such securities must be rated by two NRSROs in their
highest rating category. See "Regulatory Compliance."

BANK INSTRUMENTS. The Fund only invests in Bank Instruments either issued by an
institution having capital, surplus and undivided profits over $100 million or
insured by the Bank Insurance Fund ("BIF") or the Savings Association Insurance
Fund ("SAIF"). Bank Instruments may include Eurodollar Certificates of Deposit
("ECDs"), Yankee Certificates of Deposit ("Yankee CDs") and Eurodollar Time
Deposits ("ETDs"). The Fund will treat securities credit-enhanced with a bank's
letter of credit as Bank Instruments.

CREDIT ENHANCEMENT. Certain of the Fund's acceptable investments may have been
credit-enhanced by a guaranty, letter of credit or insurance. The Fund will
evaluate the credit quality and ratings of credit-enhanced securities based upon
the financial condition and ratings of the party providing the credit
enhancement (the "Credit Enhancer"), rather than the issuer. However,
credit-enhanced securities will generally not be treated as having been issued
by the Credit Enhancer for diversification purposes. Under certain
circumstances, the Fund would be required to do so under applicable regulations.
The bankruptcy, receivership or default of the Credit Enhancer will adversely
affect the quality and marketability of the underlying security.

MUNICIPAL SECURITIES. Municipal securities are generally issued to finance
public works, such as airports, bridges, highways, housing, hospitals, mass
transportation projects, schools, streets, and water and sewer works. They are
also issued to repay outstanding obligations, to raise funds for general
operating expenses, and to make loans to other public institutions and
facilities.

Municipal securities include private activity bonds issued by or on behalf of
public authorities to provide financing aid to acquire sites or construct and
equip facilities for privately or publicly owned corporations. The availability
of this financing encourages these corporations to locate within the sponsoring
communities and thereby increases local employment.

The two principal classifications of municipal securities are "general
obligation" and "revenue" bonds. General obligation bonds are secured by the
issuer's pledge of its full faith and credit and taxing power for the payment of
principal and interest. Interest on and principal of revenue bonds, however, are
payable only from the revenue generated by the facility financed by the bond or
other specified sources of revenue. Revenue bonds do not represent a pledge of
credit or create any debt of or charge against the general revenues of a
municipality or public authority. Bonds are typically classified as revenue
bonds.

INVESTMENT RISKS. Yields on municipal securities depend on a variety of
factors, including: the general conditions of the short-term municipal note
market and of the municipal bond market; the size of the particular
offering; the maturity of the obligations; and the rating of the issue. The
ability of the Fund to achieve its investment objective also depends on the
continuing ability of the issuers of municipal securities and participation
interests, or the guarantors of either, to meet their obligations for the
payment of interest and principal when due.

VARIABLE RATE DEMAND NOTES. Variable rate demand notes are long-term corporate
or municipal debt instruments that have variable or floating interest rates and
provide the Fund with the right to tender the security for repurchase at its
stated principal amount plus accrued interest. Such securities typically bear
interest at a rate that is intended to cause the securities to trade at par. The
interest rate may float or be adjusted at regular intervals (ranging from daily
to annually), and is normally based on a published interest rate or interest
rate index. Most variable rate demand notes allow the Fund to demand the
repurchase of the security on not more than seven days prior notice. Other notes
only permit the Fund to tender the security at the time of each interest rate
adjustment or at other fixed intervals. See "Demand Features." The Fund treats
variable rate demand notes as maturing on the later of the date of the next
interest rate adjustment or the date on which the Fund may next tender the
security for repurchase.

SHORT-TERM CREDIT FACILITIES. The Fund may enter into, or acquire
participations in, short-term borrowing arrangements with corporations,
consisting of either a short-term revolving credit facility or a master note
agreement payable upon demand. Under these arrangements, the borrower may
request advances from the Fund and may repay and reborrow funds during the term
of the facility. The Fund treats any commitment to provide such advances as a
standby commitment to purchase the borrower's notes.

DEMAND FEATURES. The Fund may acquire securities that are subject to puts and
standby commitments ("Demand Features") to repurchase the securities at their
principal amount (usually with accrued interest) within a fixed period (usually
seven days) following a demand by the Fund. The Demand Feature may be issued by
the issuer of the underlying securities, a dealer in the securities or by
another third party, and may not be transferred separately from the underlying
security. The Fund uses these arrangements to provide the Fund with liquidity
and not to protect against changes in the market value of the underlying
securities. The bankruptcy, receivership or default by the issuer of the Demand
Feature, or a default on the underlying security or other event that terminates
the Demand Feature before its exercise, will adversely affect the liquidity of
the underlying security. Demand Features that are exercisable even after a
payment default on the underlying security may be treated as a form of credit
enhancement.

REGULATORY COMPLIANCE. The Fund may follow non-fundamental operational policies
that are more restrictive than its fundamental investment limitations, as set
forth in this prospectus and its Statement of Additional Information, in order
to comply with applicable laws and regulations, including the provisions of and
regulations under the Investment Company Act of 1940, as amended. In particular,
the Fund will comply with the various requirements of Rule 2a-7, which regulates
money market mutual funds. For example, with limited exceptions, Rule 2a-7
prohibits the investment of more than 5% of the Fund's total assets in the
securities of any one issuer, although the Fund's investment limitation only
requires such 5% diversification with respect to 75% of its assets. The Fund
will invest more than 5% of its assets in any one issuer only under
circumstances permitted by Rule 2a-7. The Fund will also determine the effective
maturity of its investments, as well as its ability to consider a security as
having received the requisite short-term ratings by NRSROs, according to Rule
2a-7. The Fund may change these operational policies to reflect changes in the
laws and regulations without the approval of its shareholders.

INVESTMENT LIMITATIONS. The Fund's investment limitations are discussed below
under "Borrowing Money," "Diversification," "Restricted and Illiquid
Securities," and "Investing in New Issuers."

BOND FUND

The investment objective of Bond Fund is to achieve current income. The Fund
pursues its investment objective by investing in the bonds and other instruments
described below. Under normal market conditions, the Fund will (1) attempt to
maintain a dollar-weighted average portfolio maturity of between five and ten
years and (2) invest at least 65% of its assets in bonds.

ACCEPTABLE INVESTMENTS. The Fund invests primarily in a professionally managed,
diversified portfolio of investment grade securities which include:

- domestic issues of corporate debt obligations and U.S. dollar denominated
debt obligations of foreign corporations and governments rated Aaa, Aa,
or A by Moody's; AAA, AA, or A by S&P; or AAA, AA, or A by Fitch;

- obligations issued or guaranteed by the U.S. government, its agencies or
instrumentalities (see "Portfolio Investments and Strategies");

- commercial paper which matures in 270 days or less so long as at least
two ratings are high quality ratings by NRSROs. Such ratings would
include: A-1 by S&P, Prime-1 by Moody's, or F-1 by Fitch and, unrated but
deemed to be of comparable quality by the investment adviser, including
Canadian Commercial Paper and Europaper;

- instruments of domestic and foreign banks and savings and loans as
described above under "Prime Money Market Fund--Acceptable Investments"
and "Bank Instruments"; and

- collateralized mortgage obligations.

While the Fund will only purchase corporate debt obligations that, at the time
of purchase, are rated in the top three ratings categories, in the event that
any such security is downgraded to the fourth highest ratings category, the Fund
may continue to hold such a security. Obligations rated in the lowest of the top
four ratings, such as Baa by Moody's or BBB by S&P or Fitch, have speculative
characteristics. Changes in economic conditions or other circumstances are more
likely to lead to weakened capacity to make principal and interest payments than
higher rated bonds. In the event that any such security is downgraded by a
ratings service below the fourth highest rating category, the Fund will dispose
of the security.

In addition, the Fund may borrow money, lend portfolio securities, invest in
restricted and illiquid securities, repurchase agreements, securities of other
investment companies, and variable amount demand master notes and engage in put
and call options, futures and options on futures and when-issued and delayed
delivery transactions. See "Portfolio Investments and Strategies."

COLLATERALIZED MORTGAGE OBLIGATIONS. The Fund may invest in collateralized
mortgage obligations ("CMOs") which are rated A or better by an NRSRO and which
are issued by private entities such as investment banking firms and companies
related to the construction industry. The CMOs in which the Fund may invest may
be: (i) privately issued securities which are collateralized by pools of
mortgages in which each mortgage is guaranteed as to payment of principal and
interest by an agency or instrumentality of the U.S. government; (ii) privately
issued securities which are collateralized by

pools of mortgages in which payment of principal and interest are guaranteed by
the issuer and such guarantee is collateralized by U.S. government securities;
and (iii) other privately issued securities in which the proceeds of the
issuance are invested in mortgage-backed securities and payment of the principal
and interest are supported by the credit of an agency or instrumentality of the
U.S. government. The mortgage-related securities provide for a periodic payment
consisting of both interest and principal. The interest portion of these
payments will be distributed by the Fund as income, and the capital portion will
be reinvested.

PARTICIPATION INTERESTS. The Fund may purchase participation interests from
financial institutions (such as commercial banks, savings and loan associations,
and insurance companies), or from single-purpose, stand-alone finance
subsidiaries or trusts of such institutions, or from other special purpose
entities. Single-purpose, stand-alone finance subsidiaries or trusts and special
purpose entities generally do not have any significant assets other than the
receivables securing the participation interests. Participation interests give
the Fund an undivided fractional ownership interest in debt obligations. The
debt obligations may include pools of credit card receivables, automobile
installment loan contracts, corporate loans or debt securities, corporate
receivables or other types of debt obligations. In addition to being supported
by the stream of payments generated by the debt obligations, payments of
principal and interest on the participation interests may be supported up to
certain amounts and for certain periods of time by irrevocable letters of
credit, insurance policies, and/or other credit agreements issued by financial
institutions unaffiliated with the issuers and by monies on deposit in certain
bank accounts of the issuer. Payments of interest on the participation interests
may also rely on payments made pursuant to interest rate swap agreements made
with other unaffiliated financial institutions.

The participation interests described above will be rated A or better by Moody's
or by S&P. The Fund may also invest in participation interests which are not
rated but are determined by the Board of Trustees to be of comparable quality.

If the participation interests include the unconditional written right to demand
payment at par value plus accrued interest from the issuer, the Demand Feature
will be used in determining the maturity of the participation interest. So long
as the Demand Feature can require payment by the issuer within seven days, the
participation interest will not be deemed to be illiquid. The secondary market,
if any, for certain of these obligations may be extremely limited and any such
obligations purchased by the Fund will be regarded as illiquid, unless they
include the seven-day Demand Feature. Such illiquid obligations will be included
within the 15% limitation by the Fund on investment of its net assets in
illiquid securities.

PORTFOLIO TURNOVER. Although the Fund does not intend to invest for the purpose
of seeking short-term profits, securities in its portfolio will be sold whenever
the Fund's investment adviser believes it is appropriate to do so in light of
the Fund's investment objective, without regard to the length of time a
particular security may have been held. It is not anticipated that the portfolio
trading engaged in by the Fund will result in its annual rate of portfolio
turnover exceeding 400%. A portfolio turnover rate of 100% would occur, for
example, if all the securities in the Fund's portfolio were replaced once in a
period of one year. The Fund's rate of portfolio turnover may exceed that of
certain other mutual funds with the same investment objective. A higher rate of
portfolio turnover involves correspondingly greater transaction expenses which
must be borne directly by the Fund and, thus, indirectly by its shareholders. In
addition, a high rate of portfolio turnover may result in the realization of
larger

amounts of capital gains which, when distributed to the Fund's shareholders, are
taxable to them. (Further information is contained in the Trust's Statement of
Additional Information within the sections "Brokerage Transactions" and "Tax
Status"). Nevertheless, transactions for the Fund's portfolio will be based only
upon investment considerations and will not be limited by any other
considerations when the Fund's investment adviser deems it appropriate to make
changes in the Fund's portfolio.

INVESTMENT LIMITATIONS. The Fund's investment limitations are discussed below
under "Borrowing Money," "Diversification," "Restricted and Illiquid
Securities," and "Investing in New Issuers."

STOCK FUND

The investment objective of Stock Fund is to provide growth of capital and
income. The Fund pursues its investment objective primarily through equity
investments, such as common stocks and securities convertible into common
stocks.

ACCEPTABLE INVESTMENTS. The securities in which the Fund invests include, but
are not limited to:

- common stocks and securities convertible into common stocks which will be
primarily composed of issues of high quality large capitalization
domestic companies. See "Portfolio Investments and Strategies." Under
normal market conditions, at least 65% of the Fund's portfolio will be
invested in stocks. These will generally be readily recognizable
companies whose earnings and dividends are growing at above average
rates;

- preferred stocks, corporate bonds, notes, warrants, and rights;

- American Depositary Receipts ("ADRs"), which are receipts typically
issued by an American bank or trust company that evidences ownership of
underlying securities issued by a foreign issuer. ADRs may not
necessarily be denominated in the same currency as the securities into
which they may be converted. Generally, ADRs, in registered form, are
designed for use in U.S. securities markets. The Fund may invest up to
20% of its net assets in ADRs;

- commercial paper rated A-1 by S&P, Prime-1 by Moody's, or F-1 by Fitch
and money market instruments (including commercial paper) which are
unrated but deemed to be of comparable quality by the investment adviser,
including Canadian Commercial Paper and Europaper;

- instruments of domestic and foreign banks and savings and loans as
described above under "Prime Money Market Fund--Acceptable Investments"
and "Bank Instruments"; and

- securities issued or guaranteed by the U.S. government, its agencies or
instrumentalities, including those obligations purchased on a when-issued
or delayed delivery basis. See "Portfolio Investments and Strategies."

In addition, the Fund may borrow money, lend portfolio securities, invest in
restricted and illiquid securities, repurchase agreements, securities of other
investment companies, and variable amount demand master notes and engage in put
and call options, futures and options on futures and when-issued and delayed
delivery transactions. See "Portfolio Investments and Strategies."

In selecting investments for the Fund, the investment adviser follows a
value-based, disciplined investment philosophy. Using a computer model and
hands-on fundamental analysis, stocks are

selected based on such factors as low price/earnings ratios relative to earnings
growth and history; rising earnings estimates; relative price strength; high or
improving earnings; and credit quality.

Computer screens based upon value criteria are applied to a listing of 750
stocks that are selected based upon market capitalization, trading volume, and
availability of data, to rank them according to relative attractiveness. These
rankings are refined by additional screens focusing on earnings growth and
relative price strength. This computer model is complemented with the adviser's
fundamental analysis to produce a list of securities from which the adviser will
select what it believes to be especially attractive issues.

The relative price action of each stock is monitored, and price momentum is
followed to determine when the value of a security is beginning to be recognized
by the market.

PORTFOLIO TURNOVER. Although the Fund does not intend to invest for the purpose
of seeking short-term profits, securities in its portfolio will be sold whenever
the Fund's investment adviser believes it is appropriate to do so in light of
the Fund's investment objective, without regard to the length of time a
particular security may have been held. It is not anticipated that the portfolio
trading engaged in by the Fund will result in its annual rate of portfolio
turnover exceeding 200%. A portfolio turnover rate of 100% would occur, for
example, if all the securities in the Fund's portfolio were replaced once in a
period of one year. The Fund's rate of portfolio turnover may exceed that of
certain other mutual funds with the same investment objective. A higher rate of
portfolio turnover involves correspondingly greater brokerage commissions and
other expenses which must be borne directly by the Fund and, thus, indirectly by
its shareholders. In addition, a high rate of portfolio turnover may result in
the realization of larger amounts of capital gains which, when distributed to
the Fund's shareholders, are taxable to them. Nevertheless, transactions for the
Fund's portfolio will be based only upon investment considerations and will not
be limited by any other considerations when the Fund's investment adviser deems
it appropriate to make changes in the Fund's portfolio.

INVESTMENT LIMITATIONS. The Fund's investment limitations are discussed below
under "Borrowing Money," "Diversification," "Restricted and Illiquid
Securities," and "Investing in New Issuers."

SMALL CAPITALIZATION FUND

The investment objective of the Small Capitalization Fund is to provide
long-term capital appreciation. The Fund pursues its investment objective by
investing primarily in a broad, diversified range of equity securities
comprising the small capitalization sector of the United States equity market
(companies which have a market value capitalization up to $1 billion.)

ACCEPTABLE INVESTMENTS. The securities in which the Fund invests include, but
are not limited to:

- common stocks, and securities convertible into common stocks which will
be primarily composed of issues of small capitalization domestic
companies. See "Portfolio Investments and Strategies" and "Equity
Investment Considerations." Under normal market conditions, at least 65%
of the Fund's portfolio will be invested in equity securities of
companies that have a market value capitalization of up to $1 billion;

- preferred stocks, real estate investment trusts, corporate bonds, notes,
warrants, and rights;

- ADRs of foreign companies as described above under "Stock
Fund--Acceptable Investments;"

- commercial paper rated A-1 by S&P, Prime-1 by Moody's, or F-1 by Fitch,
and money market instruments (including commercial paper) which are
unrated but deemed to be of comparable quality by the investment adviser,
including Canadian Commercial Paper and Europaper;

- instruments of domestic and foreign banks and savings and loans as
described above under "Prime Money Market Fund--Acceptable Investments"
and "Bank Instruments;" and

While the Fund will only purchase corporate debt obligations that, at the time
of purchase, are rated in the top three rating categories, in the event that any
such security is downgraded to the fourth category, the Fund may continue to
hold the security. Obligations rated in the lowest of the top four ratings, such
as Baa by Moody's or BBB by S&P or Fitch, have speculative characteristics.
Changes in economic conditions or other circumstances are more likely to lead to
weakened capacity to make principal and interest payments than higher rated
bonds. In the event that any such security is downgraded by a ratings service
below the fourth highest rating category, the Fund will dispose of the security.

In selecting investments for the Fund, the investment adviser employs the same
value-based, disciplined investment philosophy that is described above with
respect to the Stock Fund, and applies it to the small capitalization sector of
the equity market. Using a computer model and hands-on fundamental analysis,
small capitalization stocks are selected based on such factors as low
price/earnings ratios relative to earnings growth and history; rising earnings
estimates; relative price strength; high or improving earnings; and credit
quality.

Computer screens based upon value criteria are applied to a listing of small
capitalization stocks that are selected using the same methodology that is used
for the Stock Fund to rank them according to relative attractiveness. These
rankings are refined by additional screens focusing on earnings growth and
relative price strength. This computer model is complemented with the adviser's
fundamental analysis to produce a list of securities from which the adviser will
select what it believes to be especially attractive issues.

The relative price action of each small capitalization stock is monitored, and
price momentum is followed to determine when the value of a security is
beginning to be recognized by the market.

In addition, the Fund may borrow money, lend portfolio securities, invest in
restricted and illiquid securities, repurchase agreements, securities of other
investment companies, and engage in when-issued and delayed delivery
transactions. The Fund may also invest in put and call options, futures, and
options on futures, for hedging purposes. See "Portfolio Investments and
Strategies" for a discussion of these investments as well as the potential risks
related to small capitalization stocks. The Fund's investments in real estate
investment trusts may be subject to risks associated with direct ownership of
real estate, including declines in the value of real estate, risks related to
general and local economic conditions, increases in interest rates, and other
factors discussed under this heading in the Statement of Additional Information.

INVESTMENT LIMITATIONS. The Fund's investment limitations are discussed below
under "Borrowing Money," "Diversification," "Restricted and Illiquid
Securities," and "Investing in New Issuers."

PORTFOLIO INVESTMENTS AND STRATEGIES
- --------------------------------------------------------------------------------

BORROWING MONEY

The Funds will not borrow money directly or through reverse repurchase
agreements (arrangements in which a Fund sells a money market instrument for a
percentage of its cash value with an agreement to buy it back on a set date) or
pledge securities except, under certain circumstances, a Fund may borrow money
up to one-third of the value of its total assets and pledge up to 10% (in the
case of U.S. Treasury Money Market Fund and Prime Money Market Fund) or 15% (in
the case of Bond Fund, Stock Fund, and Small Capitalization Fund) of the value
of those assets to secure such borrowings. This policy cannot be changed without
the approval of holders of a majority of a Fund's shares.

DIVERSIFICATION

With respect to 75% of the value of total assets, Prime Money Market Fund, Bond
Fund, Stock Fund, and Small Capitalization Fund will not invest more than 5% in
securities of any one issuer other than cash, cash items or securities issued or
guaranteed by the government of the United States or its agencies or
instrumentalities and repurchase agreements collateralized by U.S. government
securities. The Funds will not acquire more than 10% of the outstanding voting
securities of any one issuer. This policy cannot be changed without the approval
of holders of a majority of a Fund's shares.

RESTRICTED AND ILLIQUID SECURITIES

Prime Money Market Fund, Bond Fund, Stock Fund, and Small Capitalization Fund
may invest in restricted securities. U.S. Treasury Fund will not invest in
restricted securities. Restricted securities are any securities in which a Fund
may invest pursuant to its investment objective and policies but which are
subject to restriction on resale under federal securities law. The Bond Fund,
Stock Fund, and Small Capitalization Fund will limit investments in illiquid
securities (including certain restricted securities not determined by the
Trustees to be liquid, non-negotiable time deposits, over-the-counter options,
and repurchase agreements providing for settlement in more than seven days after
notice) to 15% of their net assets. The U.S. Treasury Money Market Fund and
Prime Money Market Fund will limit investments in illiquid securities to 10% of
their respective net assets.

A Fund may invest in commercial paper issued in reliance on the exemption from
registration afforded by Section 4(2) of the Securities Act of 1933. Section
4(2) commercial paper is restricted as to disposition under federal securities
law, and is generally sold to institutional investors, such as one of these
Funds, who agree that they are purchasing the paper for investment purposes and
not with a view to public distribution. Any resale by the purchaser must be in
an exempt transaction. Section 4(2) commercial paper is normally resold to other
institutional investors through or with the assistance of the issuer or
investment dealers who make a market in Section 4(2) commercial paper, thus
providing liquidity. The Funds believe that Section 4(2) commercial paper and
certain other restricted securities, which meet the criteria for liquidity
established by the Trustees, are quite liquid. Therefore, the Funds intend to
treat these securities as liquid and not subject to the investment limitation
applicable to illiquid securities. In addition, because these securities are
liquid, the Funds will not subject such securities to the limitation otherwise
applicable to restricted securities.

INVESTING IN NEW ISSUERS

The Funds will not invest more than 5% of their total assets in securities of
issuers that have records of less than three years of continuous operations,
including the operation of any predecessor.

REPURCHASE AGREEMENTS

The securities in which each Fund invests may be purchased pursuant to
repurchase agreements. Repurchase agreements are arrangements in which banks,
broker/dealers, and other recognized financial institutions sell U.S. government
securities or other securities to a Fund and agree at the time of sale to
repurchase them at a mutually agreed upon time and price. To the extent that the
original seller does not repurchase the securities from a Fund, that Fund could
receive less than the repurchase price on any sale of such securities. The Funds
will only enter into repurchase agreements with banks and other recognized
financial institutions such as broker/dealers which are deemed by the Funds'
adviser to be creditworthy pursuant to guidelines established by the Trustees.

WHEN-ISSUED AND DELAYED DELIVERY TRANSACTIONS

The Funds may purchase securities on a when-issued or delayed delivery basis.
These transactions are arrangements in which a Fund purchases securities with
payment and delivery scheduled for a future time. The sellers' failure to
complete the transaction may cause a Fund to miss a price or yield considered to
be advantageous. Settlement dates may be a month or more after entering into
these transactions, and the market values of the securities purchased may vary
from the purchase prices. Accordingly, a Fund may pay more or less than the
market value of the securities on the settlement date.

A Fund may dispose of a commitment prior to settlement if the adviser deems it
appropriate to do so. In addition, a Fund may enter into transactions to sell
its purchase commitments to third parties at current market values and
simultaneously acquire other commitments to purchase similar securities at later
dates. A Fund may realize short-term profits or losses upon the sale of such
commitments.

LENDING OF PORTFOLIO SECURITIES

In order to generate additional income, each Fund may lend portfolio securities
on a short-term or long-term basis, or both, up to one-third of the value of its
total assets to broker/dealers, banks, or other institutional borrowers of
securities. A Fund will only enter into loan arrangements with broker/dealers,
banks, or other institutions which the investment adviser has determined are
creditworthy under guidelines established by the Trustees and will receive
collateral in the form of cash or U.S. government securities equal to at least
100% of the value of the securities loaned. This policy cannot be changed
without the approval of holders of a majority of a Fund's shares.

There is the risk that when lending portfolio securities, the securities may not
be available to the Fund on a timely basis and the Fund may, therefore, lose the
opportunity to sell the securities at a desirable price. In addition, in the
event that a borrower of securities would file for bankruptcy or become
insolvent, disposition of the securities may be delayed pending court action.

CONVERTIBLE SECURITIES

The Stock Fund and the Small Capitalization Fund may invest in convertible
securities rated, at the time of purchase, BBB or better by S&P, Moody's, or
Fitch, or, if unrated, of comparable quality as determined by the Fund's
adviser. (If a security's rating is reduced below the required minimum after a
Fund has purchased it, the Fund is not required to sell the security, but may
consider doing so.) Convertible securities are fixed-income securities which may
be exchanged or converted into a predetermined number of the issuer's underlying
common stock at the option of the holder during a specified time period.
Convertible securities may take the form of convertible bonds, convertible
preferred stock or debentures, units consisting of "usable" bonds and warrants
or a combination of the features of several of these securities. The investment
characteristics of each convertible security vary widely, which allows
convertible securities to be employed for a variety of different investment
strategies.

Convertible bonds and convertible preferred stocks generally retain the
investment characteristics of fixed-income securities until they have been
converted but also react to movements in the underlying equity securities. The
prices of fixed-income securities fluctuate inversely to the direction of
interest rates. The holder is entitled to receive the fixed income of a bond or
the dividend preference of a preferred stock until the holder elects to exercise
the conversion privilege. Usable bonds are corporate bonds that can be used in
whole or in part, customarily at full face value, in lieu of cash to purchase
the issuer's common stock.

U.S. GOVERNMENT SECURITIES

The U.S. government securities in which Prime Money Market Fund, Bond Fund,
Stock Fund, and Small Capitalization Fund may invest include: direct obligations
of the U.S. Treasury (such as Treasury bills, notes and bonds), and obligations
issued by U.S. government agencies or instrumentalities, including securities
that are supported by the full faith and credit of the United States (such as
Government National Mortgage Association certificates); securities that are
supported by the right of the issuer to borrow from the U.S. Treasury (such as
securities of Federal Home Loan Banks); and securities that are supported by the
credit of the instrumentality (such as Federal National Mortgage Association and
Federal Home Loan Mortgage Corporation bonds).

EQUITY INVESTMENT CONSIDERATIONS AND RISK FACTORS

With respect to the Stock Fund and Small Capitalization Fund, as with other
mutual funds that invest primarily in equity securities, the Funds are subject
to market risks. Since equity markets tend to be cyclical, the possibility
exists that the value of common stocks could decline over short or even extended
periods of time.

With respect to the Small Capitalization Fund, because the Fund invests
primarily in small capitalization stocks, there are some additional risk factors
associated with investments in this Fund. Small capitalization stocks have
historically been more volatile in price than larger capitalization stocks, such
as those included in the Standard & Poor's 500 Index. This is because, among
other things, smaller companies have a lower degree of liquidity in the equity
market and tend to have a greater sensitivity to changing economic conditions.
Further, in addition to exhibiting greater volatility, these stocks may, to some
degree, fluctuate independently of the stocks of large companies. That is, the
stocks of small

capitalization companies may decline in price as the price of large company
stocks rises or vice versa. Therefore, investors should expect that there will
be periods of time when the Fund will exhibit greater volatility than broad
stock market indices such as the Standard & Poor's 500 Index.

PUT AND CALL OPTIONS

Bond Fund, Stock Fund, and Small Capitalization Fund may purchase put options on
portfolio securities. A put option gives a Fund, in return for a premium, the
right to sell the underlying security to the writer (seller) at a specified
price during the term of the option. These options will be used as a hedge to
attempt to protect securities which a Fund holds against decreases in value.
These Funds may also write covered call options on all or any portion of their
portfolio to generate income. As a writer of a call option, a Fund has the
obligation upon exercise of the option during the option period to deliver the
underlying security upon payment of the exercise price. A Fund will write call
options on securities either held in its portfolio, or which it has the right to
obtain without payment of further consideration, or for which it has segregated
cash or U.S. government securities in the amount of any additional
consideration.

A Fund may purchase and write over-the-counter options on portfolio securities
in negotiated transactions with the buyers or writers of the options when
options on the portfolio securities held by a Fund are not traded on an
exchange. A Fund purchases and writes options only with investment dealers and
other financial institutions (such as commercial banks or savings and loan
associations) deemed creditworthy by the investment adviser.

Over-the-counter options are two-party contracts with price and terms negotiated
between buyer and seller. In contrast, exchange-traded options are third-party
contracts with standardized strike prices and expiration dates and are purchased
from a clearing corporation. Exchange-traded options have a continuous liquid
market while over-the-counter options may not. A Fund will not buy call options
or write put options, other than to close out open option positions, without
further notification to shareholders.

FUTURES AND OPTIONS ON FUTURES

Bond Fund, Stock Fund, and Small Capitalization Fund may purchase and sell
futures contracts to hedge against the effects of changes in the value of
portfolio securities due to anticipated changes in interest rates and market
conditions. Futures contracts call for the delivery of particular debt
instruments at a certain time in the future. The seller of the contract agrees
to make delivery of the type of instrument called for in the contract and the
buyer agrees to take delivery of the instrument at the specified future time.

Stock index futures contracts are based on indexes that reflect the market value
of common stock of the firms included in the indexes. An index futures contract
is an agreement pursuant to which two parties agree to take or make delivery of
an amount of cash equal to the differences between the value of the index at the
close of the last trading day of the contract and the price at which the index
contract was originally written.

Bond Fund, Stock Fund, and Small Capitalization Fund may also write call options
and purchase put options on futures contracts as a hedge to attempt to protect
their portfolio securities against decreases in value. When a Fund writes a call
option on a futures contract, it is undertaking the obligation of

selling a futures contract at a fixed price at any time during a specified
period if the option is exercised. Conversely, as purchaser of a put option on a
futures contract, a Fund is entitled (but not obligated) to sell a futures
contract at the fixed price during the life of the option.

Bond Fund, Stock Fund, and Small Capitalization Fund may not purchase or sell
futures contracts or related options if immediately thereafter the sum of the
amount of margin deposits on a Fund's existing futures positions and premiums
paid for related options would exceed 5% of the market value of a Fund's total
assets. When a Fund purchases futures contracts, an amount of cash and cash
equivalents, equal to the underlying commodity value of the futures contracts
(less any related margin deposits), will be deposited in a segregated account
with the custodian (or the broker, if legally permitted) to collateralize the
position and thereby insure that the use of such futures contracts are
unleveraged. When a Fund sells futures contracts, it will either own or have the
right to receive the underlying future or security, or will make deposits to
collateralize the position as discussed above.

RISKS. When a Fund uses futures and options on futures as hedging devices,
there is a risk that the prices of the securities subject to the futures
contracts may not correlate perfectly with the prices of the securities in that
Fund's portfolio. This may cause the futures contract and any related options to
react differently than the portfolio securities to market changes. In addition,
the investment adviser could be incorrect in its expectations about the
direction or extent of market factors such as stock price movements. In these
events, a Fund may lose money on the futures contract or option.

It is not certain that a secondary market for positions in futures contracts or
for options will exist at all times. Although the investment adviser will
consider liquidity before entering into these transactions, there is no
assurance that a liquid secondary market on an exchange or otherwise will exist
for any particular futures contract or option at any particular time. A Fund's
ability to establish and close out futures and options positions depends on this
secondary market.

INVESTING IN SECURITIES OF OTHER INVESTMENT COMPANIES

The Funds may invest in the securities of other investment companies, but will
not own more than 3% of the total outstanding voting stock of any investment
company, invest more than 5% of total assets in any one investment company, or
invest more than 10% of total assets in investment companies in general. U.S.
Treasury Money Market Fund and Prime Money Market Fund may only invest in the
securities of other investment companies that are money market funds having
investment objectives and policies similar to their own. The Funds will invest
in other investment companies primarily for the purpose of investing short-term
cash which has not yet been invested in other portfolio instruments.
Shareholders should realize that when a Fund invests in other investment
companies, certain Fund expenses, such as custodian fees and administrative
fees, may be duplicated. The adviser will waive its investment advisory fee on
assets invested in securities of open-end investment companies. These
limitations are not applicable if the securities are acquired in a merger,
consolidation, reorganization, or acquisition of assets.

DEMAND MASTER NOTES

Prime Money Market Fund, Bond Fund, Stock Fund, and Small Capitalization Fund
may invest in variable amount demand master notes. Demand notes are short-term
borrowing arrangements between a corporation or government agency and an
institutional lender (such as a Fund) payable upon

demand by either party. The notice period for demand typically ranges from one
to seven days, and the party may demand full or partial payment. Many master
notes give a Fund the option of increasing or decreasing the principal amount of
the master note on a daily or weekly basis within certain limits. Demand master
notes usually provide for floating or variable rates of interest.

FOREIGN INVESTMENTS

ADRs, ECDs, ETDs, Yankee CDs, Canadian Commercial Paper, Europaper, and foreign
debt obligations are subject to somewhat different risks than corresponding
securities of domestic issuers. Examples of these risks include international,
economic and political developments, foreign governmental restrictions that may
adversely affect the payment of dividends, principal or interest, foreign
withholding or other taxes on interest income, difficulties in obtaining or
enforcing a judgment against the issuer, and the possible impact of
interruptions in the flow of international currency transactions. Different
risks may also exist for ECDs, ETDs, and Yankee CDs because the banks issuing
these instruments, or their domestic or foreign branches, are not necessarily
subject to the same regulatory requirements that apply to domestic banks, such
as reserve requirements, loan limitations, examinations, accounting, auditing,
and recordkeeping, and the public availability of information. These factors
will be carefully considered by the investment adviser in selecting investments
for a Fund.

TEMPORARY INVESTMENTS

Bond Fund, Stock Fund, and Small Capitalization Fund may invest temporarily in
cash and cash items during times of unusual market conditions for defensive
purposes (up to 100% of a Fund's respective total assets) and to maintain
liquidity (up to 35% of a Fund's respective total assets). Cash items may
include short-term obligations such as obligations of the U.S. government or its
agencies or instrumentalities and repurchase agreements.

RIMCO MONUMENT FUNDS INFORMATION
- --------------------------------------------------------------------------------

MANAGEMENT OF RIMCO MONUMENT FUNDS

BOARD OF TRUSTEES. The Trust is managed by a Board of Trustees (the
"Trustees"). The Trustees are responsible for managing the business affairs of
the Trust and for exercising all of the powers of the Trust except those
reserved for the shareholders. The Executive Committee of the Board of Trustees
handles the Trustees' responsibilities between meetings of the Board.

INVESTMENT ADVISER. Pursuant to an investment advisory contract with the Trust,
investment decisions for the Trust are made by Riggs Investment Management Corp.
("RIMCO"), the Trust's investment adviser (the "Adviser"), subject to direction
by the Trustees. The Adviser continually conducts investment research and
supervision for each Fund and is responsible for the purchase or sale of
portfolio instruments, for which it receives an annual fee from the assets of
each Fund.

ADVISORY FEES. The Adviser receives an annual investment advisory fee at
annual rates equal to percentages of the relevant Fund's average net assets
as follows: Prime Money Market Fund and U.S. Treasury Money Market
Fund--.50%; Bond Fund and Stock Fund--.75%; and Small Capitalization
Fund--.80%. The fee paid by Bond Fund, Stock Fund, and Small Capitalization
Fund, while higher than the advisory fee paid by other mutual funds in
general, is comparable to fees paid by

other mutual funds with similar investment objectives and policies. The
investment advisory contract provides for the voluntary waiver of expenses
by the Adviser from time to time. The Adviser can terminate this voluntary
waiver of expenses at any time with respect to a Fund at its sole
discretion. The Adviser has also undertaken to reimburse the Funds for
operating expenses in excess of limitations established by certain states.

ADVISER'S BACKGROUND. RIMCO is a subsidiary of The Riggs National Bank of
Washington D.C. ("Riggs National Bank"), which is a subsidiary of Riggs
National Corporation, a bank holding company. RIMCO has advised the RIMCO
Monument Funds since September 1991, and as of April 30, 1995, provides
investment advice for assets totaling $2.4 billion. RIMCO has a varied
client base of over 30 other relationships including corporate, union and
public pension plans, foundations, endowments and associations. As part of
its regular banking operations, Riggs National Bank may make loans to
public companies. Thus, it may be possible, from time to time, for a Fund
to hold or acquire the securities of issuers which are also lending clients
of Riggs National Bank. The lending relationship will not be a factor in
the selection of securities.

Robert A. von Pentz is Chairman and Executive Director of RIMCO with
overall responsibility for all investment advisory activities, and is a
member of the Management Committee. Prior to joining RIMCO in 1989, Mr. von
Pentz served as Vice President and Director of Equity Research for ASB
Capital Management, Washington, D.C., and as Vice President and Director of
Research for the Maryland National Bank. He started his career as an Equity
Analyst for the First American Bank in Washington. Mr. von Pentz has spent
most of his career designing and implementing quantitative investment
techniques. Mr. von Pentz earned a B.A. in Economics and an M.B.A. in
Finance from the University of New Mexico. He holds a C.F.A. from the
Institute of Chartered Financial Analysts. Mr. von Pentz assumed
responsibility for the Stock Fund in June, 1994, and has managed the Small
Capitalization Fund since its inception in February, 1995.

William B. Wivel is a Director of RIMCO and is jointly responsible for
fixed-income strategy and management with Bruce K. Holmquist. Mr. Wivel's
thirty years of investment experience is varied and includes positions as
Equity Analyst for E. I. duPont de Nemours, Portfolio Manager for Chase
Manhattan Bank, as well as a Senior Bond Manager for Riggs National Bank.
Most recently, he has managed the large fixed-income institutional accounts
for RIMCO. Mr. Wivel earned his B.A. in Economics from Gettysburg College
and attended the Graduate Business School of New York University.

Bruce K. Holmquist is also a Director of RIMCO. Prior to joining RIMCO in
1991, Mr. Holmquist worked as a Portfolio Manager for high net worth
clients of the Trust Department of Riggs National Bank, having joined Riggs
in 1989. Before coming to Riggs National Bank, from 1983 to 1988, Mr.
Holmquist was a principal of Smith Holmquist, Inc., a registered investment
adviser specializing in balanced accounts. Mr. Holmquist earned a B.A. in
Psychology and Philosophy from the University of Vermont and did his
graduate work in philosophy at the University of Minnesota.

Together, Mr. Wivel and Mr. Holmquist have co-managed the RIMCO Monument
Bond Fund since July 25, 1994.

DISTRIBUTION OF SHARES OF THE FUNDS

Federated Securities Corp. is the principal distributor for shares of the Funds.
It is a Pennsylvania corporation organized on November 14, 1969, and is the
principal distributor for a number of investment companies. Federated Securities
Corp. is a subsidiary of Federated Investors.

ADMINISTRATION OF THE FUNDS

ADMINISTRATIVE SERVICES. Federated Administrative Services, a subsidiary of
Federated Investors, provides the Funds with certain administrative personnel
and services necessary to operate each Fund. Such services include shareholder
servicing and certain legal and accounting services. Federated Administrative
Services provides these at an annual rate as specified below:

<TABLE>
<CAPTION>
MAXIMUM AVERAGE AGGREGATE DAILY
ADMINISTRATIVE FEE NET ASSETS OF THE TRUST
-------------------------------- -----------------------------------
<S> <C>
.150 of 1% on the first $250 million
.125 of 1% on the next $250 million
.100 of 1% on the next $250 million
.075 of 1% on assets in excess of $750 million

</TABLE>

The administrative fee received during any fiscal year shall be at least $50,000
per Fund. Federated Administrative Services may voluntarily reimburse a portion
of its fee.

CUSTODIAN. Riggs National Bank, Washington, D.C., is custodian for the
securities and cash of the Funds. Under the Custodian Agreement, Riggs National
Bank holds the Funds' portfolio securities in safekeeping and keeps all
necessary records and documents relating to its duties.

TRANSFER AGENT, DIVIDEND DISBURSING AGENT AND PORTFOLIO ACCOUNTING SERVICES.
Federated Services Company, Pittsburgh, Pennsylvania, a subsidiary of Federated
Investors, is transfer agent for the shares of the Funds and dividend disbursing
agent for the Funds. Federated Services Company also provides certain accounting
and recordkeeping services with respect to the portfolio investments of the
Funds.

INDEPENDENT AUDITORS. The independent auditors for the Funds are Ernst & Young
LLP, Pittsburgh, Pennsylvania.

NET ASSET VALUE
- --------------------------------------------------------------------------------

With respect to U.S. Treasury Money Market Fund and Prime Money Market Fund,
each Fund attempts to stabilize the net asset value of its shares at $1.00 by
valuing its portfolio securities using the amortized cost method. The net asset
value per share is determined by subtracting total liabilities from total assets
and dividing the remainder by the number of shares outstanding. Of course, U.S.
Treasury Money Market Fund and Prime Money Market Fund cannot guarantee that
their net asset value will always remain at $1.00 per share.

With respect to Bond Fund, Stock Fund, and Small Capitalization Fund, net asset
value per share fluctuates and is determined by dividing the sum of the market
value of all securities and other assets, less liabilities, by the number of
shares outstanding.

INVESTING IN THE FUNDS
- --------------------------------------------------------------------------------

SHARE PURCHASES

Shares of the Funds are sold on days on which both the New York Stock Exchange
and the Federal Reserve Wire system are open for business. Shares of the Funds
may be purchased through Riggs National Bank and its affiliate banks or through
authorized broker/dealers. In connection with the sale of shares of the Funds,
the distributor may from time to time offer certain items of nominal value to
any shareholder or investor. The Funds reserve the right to reject any purchase
request.

THROUGH RIGGS NATIONAL BANK. An investor may write to or call Riggs National
Bank to place an order to purchase shares of a Fund. (Call 202-835-4280, or
outside the Washington, D.C. metropolitan area call toll-free 1-800-934-3883.)
Representatives are available from 8:00 a.m. to 5:00 p.m. (Washington, D.C.
time). Payment may be made either by mail or federal funds or by debiting a
customer's account at Riggs National Bank. With respect to U.S. Treasury Money
Market Fund and Prime Money Market Fund, purchase orders must be received by
Riggs National Bank before 11:00 a.m. (Washington, D.C. time). Payment is
normally required on the same business day. With respect to Bond Fund, Stock
Fund, and Small Capitalization Fund, purchase orders must be received by Riggs
National Bank before 4:00 p.m. (Washington, D.C. time). Payment is normally
required on the next business day. Texas residents must purchase shares through
Federated Securities Corp. at 1-800-356-2805.

Payment for shares of a Fund may be made by check or by wire.

BY MAIL. To purchase shares of a Fund by mail, send a check made payable to
"RIMCO Monument Funds" (and identify the appropriate Fund) to The Riggs National
Bank of Washington, D.C., P.O. Box 96656, Washington, D.C. 20090-6656. Orders by
mail are considered received after payment by check is converted by Riggs
National Bank into federal funds. This is normally the next business day after
Riggs National Bank receives the check.

BY WIRE. To purchase shares of a Fund by wire, call 202-835-4280 (or outside
the Washington, D.C. metropolitan area call toll-free 1-800-934-3883).

With respect to U.S. Treasury Money Market Fund and Prime Money Market Fund,
payment by wire must be received by Riggs National Bank before 12:30 p.m.
(Washington, D.C. time) on the same day as the order is placed to earn dividends
for that day. With respect to Bond Fund, Stock Fund, and Small Capitalization
Fund, payment by wire must be received by Riggs National Bank before 3:00 p.m.
(Washington, D.C. time) on the next business day after placing the order. Shares
of the Funds cannot be purchased by Federal Reserve Wire on Columbus Day,
Veterans' Day or Martin Luther King Day.

THROUGH AUTHORIZED BROKER/DEALERS. An investor may place an order through
authorized brokers and dealers to purchase shares of a Fund. Shares will be
purchased at the public offering price next determined after the Fund receives
the purchase request from Riggs National Bank. Purchase requests

through authorized brokers and dealers must be received by Riggs National Bank
and transmitted to the Fund before 3:00 p.m. (Washington, D.C. time) in order
for shares to be purchased at that day's public offering price.

MINIMUM INVESTMENT REQUIRED

The minimum initial investment in each Fund is $2,500, except for an Individual
Retirement Account ("IRA") which requires a minimum initial investment of $500.
Subsequent investments must be in amounts of at least $100, except for an IRA,
which must be in amounts of at least $50. An investor's minimum investment will
be calculated by combining all mutual fund accounts it maintains in the RIMCO
Funds.

The minimum investment required may be waived for purchases by employees or
retirees of the Riggs National Corporation and/or its subsidiaries, employees of
Independent Financial Marketing Group, and their spouses and children under the
age of 21.

WHAT SHARES COST

Shares of the U.S. Treasury Money Market Fund and the Prime Money Market Fund
are sold at their net asset value next determined after an order is received.
There is no sales charge imposed by these Funds.

Shares of the Bond Fund, Stock Fund, and Small Capitalization Fund are sold at
their public offering price based on their net asset value per share next
determined after an order is received, plus a sales charge as follows:

<TABLE>
<CAPTION>
SALES CHARGE AS A SALES CHARGE AS A
PERCENTAGE OF PUBLIC PERCENTAGE OF NET
AMOUNT OF TRANSACTION OFFERING PRICE AMOUNT INVESTED
- -------------------------------------------------- -------------------- -----------------
<S> <C> <C>
Less than $50,000 3.50% 3.63%
- --------------------------------------------------
$50,000 but less than $100,000 3.00% 3.09%
- --------------------------------------------------
$100,000 but less than $500,000 2.50% 2.56%
- --------------------------------------------------
$500,000 but less than $1 million. 1.00% 1.01%
- --------------------------------------------------
$1 million or more. .00% .00%
- --------------------------------------------------
</TABLE>

On Monday through Friday, U.S. Treasury Money Market Fund and Prime Money Market
Fund calculate net asset value at 12:00 noon (Washington, D.C. time) and 4:00
p.m. (Washington, D.C. time), while Bond Fund, Stock Fund, and Small
Capitalization Fund calculate net asset value at the close of trading on the New
York Stock Exchange, currently 4:00 p.m. (Washington, D.C. time), except on: (i)
days on which there are not sufficient changes in the value of a Fund's
portfolio securities that its net asset value might be materially affected; (ii)
days during which no shares of a Fund are tendered for redemption and no orders
to purchase shares are received; and (iii) on the following holidays: New Year's
Day, Presidents' Day, Good Friday, Memorial Day, Independence Day, Labor Day,
Thanksgiving Day and Christmas Day.

PURCHASES AT NET ASSET VALUE. Shares of the Bond Fund, Stock Fund, and Small
Capitalization Fund may be purchased at net asset value, without a sales charge:
by or through the Trust Division or the Private Banking Division of Riggs
National Bank for funds which are held in a fiduciary, agency, custodial, or
similar capacity; by Private Banking Customers of Riggs National Bank; by
directors, employees, and retired employees of the Funds, Riggs National
Corporation and/or its subsidiaries, or Federated Securities Corp. or their
affiliates, and their spouses and children under the age of 21; by any bank or
investment dealer who has a sales agreement with Federated Securities Corp. with
regard to the Bond Fund, Stock Fund, and Small Capitalization Fund; or by anyone
purchasing Shares with funds distributed by a qualified plan currently held in
custody by Riggs National Bank. A Fund's sales charge will not be charged to a
registered investment advisor (RIA) purchasing for its discretionary accounts,
provided a RIA load waiver agreement, which specifies certain aggregate minimum
and operating provisions, is executed. This waiver is available only for shares
purchased directly, without a broker, and is unavailable if the RIA is part of
an organization principally engaged in the brokerage business.

PURCHASES WITH PROCEEDS FROM REDEMPTIONS OF UNAFFILIATED MUTUAL FUND SHARES.
Investors may purchase shares of the Bond Fund, Stock Fund, and Small
Capitalization Fund at net asset value, without a sales charge, with the
proceeds from the redemption of shares of a mutual fund which was sold with a
sales charge or commission. The purchase must be made within 60 days of the
redemption, and the distributor must be notified by the investor in writing, or
by his financial institution, at the time the purchase is made. This offer is
not available for the redemption of mutual fund shares that were or would be
subject to a contingent deferred sales charge upon redemption.

DEALER CONCESSION. A dealer or Riggs National Bank will normally receive up to
100% of the applicable sales charge on the Bond Fund, Stock Fund, and Small
Capitalization Fund. Any portion of the sales charge which is not paid to Riggs
National Bank or a dealer will be retained by the distributor. However, the
distributor, at its sole discretion, may uniformly offer to pay to Riggs
National Bank or a dealer selling shares of the Funds all or a portion of the
sales charge it normally retains. If accepted by Riggs National Bank or a
dealer, such additional payments will be predicated upon the amount of Fund
shares sold. Such payments may take the form of cash or promotional incentives,
such as payment of certain expenses of qualified employees and their spouses to
attend informational meetings about the Funds or other special events at
recreational facilities, or items of material value. In some instances, these
incentives will be made available only to dealers whose employees have sold or
may sell significant amounts of shares.

OTHER PAYMENTS TO FINANCIAL INSTITUTIONS. The distributor, the Adviser, or
their affiliates may also offer to pay a fee from their own assets to financial
institutions as financial assistance for providing substantial marketing and
sales support. The support may include initiating customer accounts, providing
sales literature, or participating in sales, educational and training seminars
(including those held at recreational facilities). Such assistance will be
predicated upon the amount of shares the financial institution sells or may sell
and/or upon the type and nature of sales or marketing support furnished by the
financial institution. Any payments made by the distributor may be reimbursed by
the Adviser or its affiliates.

REDUCING THE SALES CHARGE. The sales charge can be reduced through:

- quantity discounts and accumulated purchases;

- signing a 13-month letter of intent;

- using the reinvestment privilege; or

- concurrent purchases.

QUANTITY DISCOUNTS AND ACCUMULATED PURCHASES. As shown in the table above,
larger purchases of the Bond Fund, Stock Fund, and Small Capitalization Fund
reduce the sales charge paid. The distributor will combine purchases made on the
same day by the investor, his spouse, and his children under age 21 when it
calculates the sales charge. In addition, the sales charge, if applicable, is
reduced for purchases made at one time by a trustee or fiduciary for a single
trust estate or a single fiduciary account.

If an additional purchase of shares in the Bond Fund, Stock Fund, or Small
Capitalization Fund is made, the distributor will aggregate such additional
purchases with previous purchases of shares of the Bond Fund, Stock Fund, or
Small Capitalization Fund provided the prior purchase is still invested in
either of these Funds. For example, if a shareholder already owns shares having
a current value at the public offering price of $40,000 and he purchases $10,000
more at the current public offering price, the sales charge on the additional
purchase according to the schedule now in effect would be 3.00%, not 3.50%.

To receive the sales charge reduction, the distributor or Riggs National Bank
must be notified by the investor in writing at the time the purchase is made
that shares of either the Bond Fund, Stock Fund, or Small Capitalization Fund
have been purchased and are still invested or that such purchases are being
combined. The distributor will reduce the sales charge after it confirms the
purchase.

LETTER OF INTENT. If a shareholder intends to purchase at least $50,000 of
shares in the Bond Fund, Stock Fund, or Small Capitalization Fund over the next
13 months, the sales charge may be reduced by signing a letter of intent to that
effect. This letter of intent includes a provision for a sales charge adjustment
depending on the amount actually purchased within the 13-month period and a
provision for the Fund's custodian to hold up to 3.5% of the total amount
intended to be purchased in escrow (in shares of that Fund) until such purchase
is completed.

The amount held in escrow will be applied to the shareholder's account at the
end of the 13-month period unless the amount specified in the letter of intent
is not purchased. In this event, an appropriate number of escrowed shares may be
redeemed in order to realize the difference in the sales charge.

This letter of intent will not obligate the shareholder to purchase shares, but
if the shareholder does, each purchase during the period will be at the sales
charge applicable to the total amount intended to be purchased. At the time a
letter of intent is established, current balances in accounts in the Bond Fund,
Stock Fund, or Small Capitalization Fund will be aggregated to provide a
purchase credit toward fulfillment of the letter of intent. Prior trade prices
will not be adjusted.

REINVESTMENT PRIVILEGE. If shares in the Bond Fund, Stock Fund, or Small
Capitalization Fund have been redeemed, the shareholder has a one-time right,
within 30 days, to reinvest the redemption proceeds in the applicable Fund at
the next-determined net asset value without any sales charge. Riggs National
Bank or the distributor must be notified in writing by the shareholder or by his
financial

institution of the reinvestment, in order to eliminate a sales charge. If the
shareholder redeems his shares in a Fund, there may be tax consequences.

CONCURRENT PURCHASES. For purposes of qualifying for a sales charge reduction,
a shareholder has the privilege of combining concurrent purchases in the Bond
Fund, Stock Fund, and the Small Capitalization Fund, the purchase price of which
includes a sales charge. For example, if a shareholder concurrently invested
$30,000 in the Bond Fund, $10,000 in the Stock Fund, and $10,000 in the Small
Capitalization Fund, the sales charge would be reduced.

To receive this sales charge reduction, the distributor or Riggs National Bank
must be notified in writing by the shareholder or by his financial institution
at the time the concurrent purchases are made. The distributor will reduce the
sales charge after it confirms the purchase.

SYSTEMATIC INVESTMENT PROGRAM

Once a Fund account has been opened, shareholders may add to their investment on
a regular basis in a minimum amount of $50. Under this program, funds may be
automatically withdrawn on a periodic schedule from the shareholder's checking
or savings account and invested in Fund shares at the net asset value next
determined after an order is received plus the applicable sales charge. A
shareholder may apply for participation in this program through Riggs National
Bank or an authorized broker or dealer.

RETIREMENT PLANS

Shares of the Funds can be purchased as an investment for retirement plans or
for IRA accounts. For further details, contact Riggs National Bank and consult a
tax adviser.

CERTIFICATES AND CONFIRMATIONS

As transfer agent for the Fund, Federated Services Company maintains a share
account for each shareholder of record. Share certificates are not issued unless
requested by contacting Riggs National Bank in writing.

With respect to U.S. Treasury Money Market Fund and Prime Money Market Fund,
shareholders will receive monthly statements showing all account activity for
the statement period which will serve as the confirmation of all reported
account activity. With respect to Bond Fund, Stock Fund, and Small
Capitalization Fund, detailed confirmations of each purchase or redemption are
sent to each shareholder. In addition, shareholders will receive monthly
statements showing all account activity for the statement period.

DIVIDENDS

With respect to U.S. Treasury Money Market Fund, Prime Money Market Fund, and
Bond Fund, dividends are declared daily and paid monthly. Unless shareholders
request cash payments by so indicating on the account application or by writing
to one of these Funds, dividends are automatically reinvested in additional
shares of the respective Fund on payment dates at net asset value on the ex-
dividend date without a sales charge.

With respect to Stock Fund and Small Capitalization Fund, dividends are declared
and paid quarterly. Unless cash payments are requested by shareholders in
writing to the appropriate Fund or by

indication on the account application, dividends are automatically reinvested in
additional shares of the Fund on payment dates at the ex-dividend date net asset
value without a sales charge.

CAPITAL GAINS

Capital gains realized by a Fund, if any, will be distributed at least once
every 12 months.

EXCHANGES
- --------------------------------------------------------------------------------

A shareholder may exchange shares of one Fund for shares of any of the other
Funds in the Trust by calling 202-835-4280 (or outside the Washington, D.C.
metropolitan area call 1-800-934-3883) or by writing to Riggs National Bank.
Shares purchased by check are eligible for exchange after seven days.

Orders to exchange shares of one Fund for shares of any of the other Funds will
be executed by redeeming the shares owned and purchasing shares of any of the
other Funds at the net asset value determined after the exchange request is
received. Orders for exchanges received by a Fund prior to 4:00 p.m.
(Washington, D.C. time) on any day that Fund is open for business will be
executed as of the close of business that day. Orders for exchanges received
after 4:00 p.m. (Washington, D.C. time) on any business day will be executed at
the close of the next business day.

An authorization form permitting a Fund to accept telephone exchange requests
must first be completed. It is recommended that investors request this privilege
on the account application at the time of their initial application. If not
completed at the time of initial application, authorization forms and
information on this service can be obtained through Riggs National Bank.
Telephone exchange instructions may be recorded. If reasonable procedures are
not followed by the Fund, it may be liable for losses due to unauthorized or
fraudulent telephone instructions.

When exchanging into and out of load and no load shares of the Funds in the
Trust, shareholders who have paid a sales load once upon purchasing shares of
any Fund, including those shares obtained through the reinvestment of dividends,
will not have to pay a sales load again on an exchange.

An excessive number of exchanges may be disadvantageous to the Trust. Therefore,
the Trust, in addition to its right to reject any exchange, reserves the right
to modify or terminate the exchange privilege at any time. Shareholders would be
notified prior to any modification or termination.

An exchange order must comply with the requirements for a redemption and must
specify the dollar value or number of shares to be exchanged. Exchanges are
subject to the minimum initial investment requirement of the Fund being
acquired. An exchange constitutes a sale for federal income tax purposes.

The exchange privilege is only available in states where shares of the Fund
being acquired may legally be sold.

REDEEMING SHARES
- --------------------------------------------------------------------------------

Each Fund redeems shares at their net asset value next determined after Riggs
National Bank receives the redemption request.

Redemptions will be made on days on which both the New York Stock Exchange and
Federal Reserve Wire system are open for business. Telephone or written requests
for redemption must be received in proper form by Riggs National Bank.

BY TELEPHONE. A shareholder may redeem shares of a Fund by calling Riggs
National Bank to request the redemption. (Call 202-835-4280 or outside the
Washington, D.C. metropolitan area call 1-800-934-3883.) Shares will be redeemed
at the net asset value next determined after a Fund receives the redemption
request from Riggs National Bank. Although Riggs National Bank does not charge
for telephone redemptions, it reserves the right to charge a fee for the cost of
wire-transferred redemptions of less than $5,000, or in excess of one per month.

With respect to U.S. Treasury Money Market Fund and Prime Money Market Fund,
redemption requests received before 11:00 a.m. (Washington, D.C. time) will be
wired the same day, but will not be entitled to that day's dividend. Riggs
National Bank is responsible for promptly submitting redemption requests and
providing proper written redemption instructions to a Fund. If, at any time, a
Fund should determine it necessary to terminate or modify this method of
redemption, shareholders would be promptly notified.

With respect to Bond Fund, Stock Fund, and Small Capitalization Fund, a
redemption request must be received by Riggs National Bank before 4:00 p.m.
(Washington D.C. time) in order for shares to be redeemed at that day's net
asset value.

An authorization form permitting a Fund to accept telephone redemption requests
must first be completed. It is recommended that investors request this privilege
at the time of their initial application. If not completed at the time of
initial application, authorization forms and information on this service can be
obtained through Riggs National Bank. Telephone redemption instructions may be
recorded. If reasonable procedures are not followed by the Fund, it may be
liable for losses due to unauthorized or fraudulent telephone instructions.

In the event of drastic economic or market changes, a shareholder may experience
difficulty in redeeming by telephone. If such a case should occur, another
method of redemption, such as by mail, should be considered.

BY MAIL. Shareholders may redeem shares of a Fund by sending a written request
to The Riggs National Bank of Washington, D.C., P.O. Box 96656, Washington, D.C.
20090-6656. The written request should include the shareholder's name, the Fund
name, the account number, and the share or dollar amount requested, and should
be signed by each registered owner exactly as the shares are registered. If
share certificates have been issued, they must be properly endorsed and should
be sent by registered or certified mail with the written request to Riggs
National Bank.

Shareholders requesting a redemption of $50,000 or more, a redemption of any
amount to be sent to an address other than that on record with a Fund, or a
redemption payable other than to the shareholder of record must have signatures
on written redemption requests guaranteed by:

- a trust company or commercial bank whose deposits are insured by BIF,
which is administered by the Federal Deposit Insurance Corporation
("FDIC");

- a member of the New York, American, Midwest, or Pacific Stock Exchange;

- a savings bank or savings and loan association whose deposits are insured
by SAIF, which is administered by the FDIC; or

- any other "eligible guarantor institution," as defined in the Securities
Exchange Act of 1934.

The Funds do not accept signatures guaranteed by a notary public.

The Trust and its transfer agent have adopted standards for accepting signature
guarantees from the above institutions. The Trust may elect in the future to
limit eligible signature guarantors to institutions that are members of a
signature guarantee program. The Trust and its transfer agent reserve the right
to amend these standards at any time without notice.

Normally, a check for the proceeds is mailed to the shareholder within one
business day, but in no event more than seven days, after receipt of a proper
written redemption request. Upon shareholder request, the proceeds may be
credited to an account at Riggs National Bank.

SYSTEMATIC WITHDRAWAL PROGRAM

Shareholders who desire to receive payments of a predetermined amount may take
advantage of the Systematic Withdrawal Program. Once a Fund account has been
opened, shareholders may withdraw from their investment on a regular basis in a
minimum amount of $50. Under this program, Fund shares are redeemed to provide
for periodic withdrawal payments in an amount directed by the shareholder.
Depending upon the amount of the withdrawal payments, the amount of dividends
paid and capital gains distributions with respect to Fund shares, and the
fluctuation of the net asset value of Fund shares redeemed under this program,
redemptions may reduce, and eventually deplete, the shareholder's investment in
the Fund. For this reason, payments under this program should not be considered
as yield or income on the shareholder's investment in the Fund. To be eligible
to participate in this program, a shareholder must have an account value of at
least $10,000. A shareholder may apply for participation in this program through
Riggs National Bank or an authorized broker or dealer. Due to the fact that
shares of the Bond Fund, Stock Fund, and Small Capitalization Fund are sold with
a sales charge, it is not advisable for shareholders of these Funds to be
purchasing shares while participating in this program.

ACCOUNTS WITH LOW BALANCES

Due to the high cost of maintaining accounts with low balances, the Fund may
redeem shares in any account and pay the proceeds to the shareholder if the
account balance falls below the required minimum value of $1,000 due to
shareholder redemptions. Before shares are redeemed to close an account, the
shareholder is notified in writing and allowed 30 days to purchase additional
shares to meet the minimum requirement. The required minimum value may be waived
for employees or retirees of the Riggs National Corporation and/or its
subsidiaries, employees of Independent Financial Marketing Group, and their
spouses and children under 21.

SHAREHOLDER INFORMATION
- --------------------------------------------------------------------------------

VOTING RIGHTS

Each share of a Fund gives the shareholder one vote in Trustee elections and
other matters submitted to shareholders for vote. All shares of each Fund in the
Trust have equal voting rights, except that in matters affecting only a
particular Fund only shareholders of that Fund are entitled to vote. As a
Massachusetts business trust, the Trust is not required to hold annual
shareholder meetings. Shareholder approval will be sought only for certain
changes in the operation of the Trust or a Fund and for the election of Trustees
under certain circumstances. As of June 6, 1995, Riggs National Bank may for
certain purposes be deemed to control the Funds because it is owner of record of
certain shares of the Funds.

Trustees may be removed by the Trustees or by shareholders at a special meeting.
A special meeting of the shareholders shall be called by the Trustees upon the
written request of shareholders owning at least 10% of the Trust's outstanding
shares.

MASSACHUSETTS PARTNERSHIP LAW

Under certain circumstances, shareholders may be held personally liable as
partners under Massachusetts law for acts or obligations of the Trust. To
protect shareholders, the Trust has filed legal documents with Massachusetts
that expressly disclaim the liability of shareholders for such acts or
obligations of the Trust. These documents require notice of this disclaimer to
be given in each agreement, obligation, or instrument the Trust or its Trustees
enter into or sign.

In the unlikely event a shareholder is held personally liable for obligations of
the Trust, the Trust is required to use its property to protect or to compensate
the shareholder. On request, the Trust will defend any claim made and pay any
judgment against a shareholder for any act or obligation of the Trust.
Therefore, financial loss resulting from liability as a shareholder will occur
only if the Trust cannot meet its obligations to indemnify shareholders and to
pay judgments against them from its assets.

EFFECT OF BANKING LAWS
- --------------------------------------------------------------------------------

Banking laws and regulations presently prohibit a bank holding company
registered under the Federal Bank Holding Company Act of 1956 or any bank or
non-bank affiliate thereof from sponsoring, organizing, controlling or
distributing the shares of a registered, open-end investment company
continuously engaged in the issuance of its shares, and prohibit banks generally
from issuing, underwriting, or distributing securities. However, such banking
laws and regulations do not prohibit such a holding company affiliate or banks
generally from acting as investment adviser, transfer agent or custodian to such
an investment company or from purchasing shares of such a company as agent for
and upon the order of such a customer. Riggs National Bank is subject to such
banking laws and regulations.

Riggs National Bank believes, based on the advice of its counsel, that RIMCO may
perform the services for any Fund contemplated by its advisory agreement with
the Trust without violation of the Glass-

Steagall Act or other applicable banking laws or regulations. Changes in either
federal or state statutes and regulations relating to the permissible activities
of banks and their subsidiaries or affiliates, as well as further judicial or
administrative decisions or interpretations of such or future statutes and
regulations, could prevent RIMCO from continuing to perform all or a part of the
above services for its customers and/or a Fund. If it were prohibited from
engaging in these customer-related activities, the Trustees would consider
alternative advisers and means of continuing available investment services. In
such event, changes in the operation of a Fund may occur, including possible
termination of any automatic or other Fund share investment and redemption
services then being provided by RIMCO. It is not expected that existing
shareholders would suffer any adverse financial consequences (if another adviser
with equivalent abilities to RIMCO is found) as a result of any of these
occurrences.

State securities laws governing the ability of depository institutions to act as
underwriters or distributors of securities may differ from interpretations given
to the Glass-Steagall Act and, therefore, banks and financial institutions may
be required to register as dealers pursuant to state law.

TAX INFORMATION
- --------------------------------------------------------------------------------

FEDERAL INCOME TAX

The Funds anticipate that they will pay no federal income tax because each Fund
expects to meet requirements of the Internal Revenue Code applicable to
regulated investment companies and to receive the special tax treatment afforded
to such companies.

Each Fund will be treated as a single, separate entity for federal income tax
purposes so that income (including capital gains) and losses realized by a Fund
will not be combined for tax purposes with those realized by any of the other
Funds.

Unless otherwise exempt, shareholders are required to pay federal income tax on
any dividends and other distributions received. This applies whether dividends
and distributions are received in cash or as additional shares. Shareholders are
urged to consult their own tax advisers regarding the status of their accounts
under state and local tax laws.

ADDRESSES
- --------------------------------------------------------------------------------

<TABLE>
<S> <C> <C>
RIMCO Monument U.S. Treasury Money Market Fund
RIMCO Monument Prime Money Market Fund
RIMCO Monument Bond Fund
RIMCO Monument Stock Fund
RIMCO Monument Small Capitalization Equity Fund
Federated Investors Tower
Pittsburgh, Pennsylvania 15222-3779
- ----------------------------------------------------------------------------------------------------
Distributor
Federated Securities Corp. Federated Investors Tower
Pittsburgh, Pennsylvania 15222-3779
- ----------------------------------------------------------------------------------------------------
Investment Adviser
Riggs Investment Management Corp. 808 17th Street N.W.
Washington, D.C. 20006-3950
- ----------------------------------------------------------------------------------------------------
Custodian
The Riggs National Bank of Washington, D.C. 1120 Vermont Avenue N.W.
RIMCO Monument Funds Washington, D.C. 20005-3598
- ----------------------------------------------------------------------------------------------------
Transfer Agent, Dividend Disbursing Agent,
and Portfolio Accounting Services
Federated Services Company Federated Investors Tower
Pittsburgh, Pennsylvania 15222-3779
- ----------------------------------------------------------------------------------------------------
Independent Auditors
Ernst & Young LLP One Oxford Centre
Pittsburgh, Pennsylvania 15219
- ----------------------------------------------------------------------------------------------------
</TABLE>

[THIS PAGE INTENTIONALLY LEFT BLANK]

RIMCO MONUMENT FUNDS
COMBINED PROSPECTUS

An Open-End Management
Investment Company

June 30, 1995

RIGGS INVESTMENT MANAGEMENT CORP. (RIMCO)
(LOGO)
----------------------------------------------------

Investment Adviser

FEDERATED SECURITIES CORP.
(LOGO)
----------------------------------------------------

Distributor

1061803A (6/95)

RIMCO MONUMENT FUNDS

CONSISTS OF FIVE PORTFOLIOS:
O RIMCO MONUMENT U.S. TREASURY MONEY MARKET FUND;
O RIMCO MONUMENT PRIME MONEY MARKET FUND;
O RIMCO MONUMENT BOND FUND;
O RIMCO MONUMENT STOCK FUND; AND
O RIMCO MONUMENT SMALL CAPITALIZATION EQUITY FUND.
Statement of Additional Information

This combined Statement of Additional Information should be read
with the combined Prospectus of RIMCO Monument Funds (the "Trust")
dated June 30, 1995. This Statement is not a prospectus itself. To
receive a copy of the combined Prospectus, write or call the
Trust.
FEDERATED INVESTORS TOWER
PITTSBURGH, PENNSYLVANIA 15222-3779
Statement dated June 30, 1995

Federated Securities Corp.
Distributor
A subsidiary of
Federated Investors
GENERAL INFORMATION ABOUT THE
TRUST 1
INVESTMENT OBJECTIVE AND POLICIES
OF THE FUNDS 1
Repurchase Agreements 1
Reverse Repurchase Agreements 1
When-Issued and Delayed
Delivery Transactions 1
Restricted and Illiquid
Securities 1
Lending of Portfolio Securities 2
U.S. Government Securities 2
Bank Instruments 2
Futures and Options
Transactions 2
Futures Contracts 3
Put Options on Futures
Contracts 3
Call Options on Futures
Contracts 3
"Margin" in Futures
Transactions 4
Collateralized Mortgage
Obligations (CMOs) 4
Real Estate Investment Trusts 5
Convertible Securities 5
Warrants 5
Portfolio Turnover 5
Investment Limitations 5
RIMCO MONUMENT FUNDS MANAGEMENT 8
Officers and Trustees 8
Fund Ownership 12
Trustees Compensation 13
Trustee Liability 13
INVESTMENT ADVISORY SERVICES 13
Adviser to the Trust 13
Advisory Fees 14
CUSTODIAN 15
BROKERAGE TRANSACTIONS 15
PURCHASING SHARES 15
Conversion to Federal Funds 15
DETERMINING NET ASSET VALUE 15
Determining Market Value of
Securities 15
Use of the Amortized Cost
Method 16
REDEEMING SHARES 17
Redemption in Kind 17
TAX STATUS 17
The Funds' Tax Status 17
Shareholders' Tax Status 17
Capital Gains 17
TOTAL RETURN 18
YIELD 18
EFFECTIVE YIELD 19
PERFORMANCE COMPARISONS 19
FINANCIAL STATEMENTS 21
APPENDIX 21
GENERAL INFORMATION ABOUT THE TRUST
The Trust was established as a Massachusetts business trust under a
Declaration of Trust dated April 1, 1991. As of the date of this
Statement, the Trust consists of five separate portfolios of securities
(the "Funds") which are as follows: RIMCO Monument U.S. Treasury Money
Market Fund ("U.S. Treasury Money Market Fund"), RIMCO Monument Prime
Money Market Fund ("Prime Money Market Fund"), RIMCO Monument Bond Fund
("Bond Fund"), RIMCO Monument Stock Fund ("Stock Fund") and RIMCO
Monument Small Capitalization Equity Fund ("Small Capitalization Fund").
INVESTMENT OBJECTIVE AND POLICIES OF THE FUNDS
The Prospectus discusses the objective of each Fund and the policies it
employs to achieve those objectives. The following discussion
supplements the description of the Funds' investment policies in the
Prospectus.
The Funds' respective investment objectives cannot be changed without
approval of shareholders. The investment policies described below may be
changed by the Board of Trustees (the "Trustees") without shareholder
approval. Shareholders will be notified before any material change in
these policies becomes effective.
REPURCHASE AGREEMENTS
The Funds or their custodian will take possession of the securities
subject to repurchase agreements and these securities will be marked to
market daily. In the event that a defaulting seller filed for bankruptcy
or became insolvent, disposition of such securities by a Fund might be
delayed pending court action. The Funds believe that under the regular
procedures normally in effect for custody of a Fund's portfolio
securities subject to repurchase agreements, a court of competent
jurisdiction would rule in favor of a Fund and allow retention or
disposition of such securities. The Funds will only enter into
repurchase agreements with banks and other recognized financial
institutions such as broker/dealers which are deemed by the adviser to
be creditworthy pursuant to guidelines established by the Trustees.
REVERSE REPURCHASE AGREEMENTS
The Funds may also enter into reverse repurchase agreements. These
transactions are similar to borrowing cash. In a reverse repurchase
agreement a Fund transfers possession of a portfolio instrument to
another person, such as a financial institution, broker, or dealer, in
return for a percentage of the instrument's market value in cash, and
agrees that on a stipulated date in the future the Fund will repurchase
the portfolio instrument by remitting the original consideration plus
interest at an agreed upon rate. The use of reverse repurchase
agreements may enable a Fund to avoid selling portfolio instruments at a
time when a sale may be deemed to be disadvantageous, but the ability to
enter into reverse repurchase agreements does not ensure that a Fund
will be able to avoid selling portfolio instruments at a disadvantageous
time.
When effecting reverse repurchase agreements, liquid assets of a Fund,
in a dollar amount sufficient to make payment for the obligations to be
purchased, are segregated at the trade date. These securities are marked
to market daily and are maintained until the transaction is settled.
WHEN-ISSUED AND DELAYED DELIVERY TRANSACTIONS
The Funds may engage in when-issued and delayed delivery transactions.
These transactions are made to secure what is considered to be an
advantageous price or yield for a Fund. However, liquid assets of a Fund
sufficient to make payment for the securities to be purchased are
segregated on the Fund's records at the trade date. These assets are
marked to market daily and are maintained until the transaction has been
settled. As a matter of policy, the Funds do not intend to engage in
when-issued and delayed delivery transactions to an extent that would
cause the segregation of more than 20% of the total value of their
respective assets.
RESTRICTED AND ILLIQUID SECURITIES
The ability of the Trustees to determine the liquidity of certain
restricted securities is permitted under a Securities and Exchange
Commission (the "SEC") Staff position set forth in the adopting release
for Rule 144A under the Securities Act of 1933 (the "Rule"). The Rule is
a non-exclusive, safe-harbor for certain secondary market transactions
involving securities subject to restrictions on resale under federal
securities laws. The Rule provides an exemption from registration for
resales of otherwise restricted securities to qualified institutional
buyers. The Rule was expected to further enhance the liquidity of the
secondary market for securities eligible for resale under the Rule. The
Trust, on behalf of the Funds, believes that the Staff of the SEC has
left the question of determining the liquidity of all restricted
securities for determination to the Trustees. The Trustees consider the
following criteria in determining the liquidity of certain restricted
securities:
o the frequency of trades and quotes for the security;
o the number of dealers willing to purchase or sell the security and
the number of other potential buyers;
o dealer undertakings to make a market in the security; and
o the nature of the security and the nature of the marketplace
trades.
LENDING OF PORTFOLIO SECURITIES
The collateral received when a Fund lends portfolio securities must be
valued daily and, should the market value of the loaned securities
increase, the borrower must furnish additional collateral to the
particular Fund. During the time portfolio securities are on loan, the
borrower pays a Fund any dividends or interest paid on such securities.
Loans are subject to termination at the option of a Fund or the
borrower. A Fund may pay reasonable administrative and custodial fees in
connection with a loan and may pay a negotiated portion of the interest
earned on the cash or equivalent collateral to the borrower or placing
broker.
A Fund would not have the right to vote securities on loan, but would
terminate the loan and regain the right to vote if that were considered
important with respect to the investment.
U.S. GOVERNMENT SECURITIES
The types of U.S. government securities in which the Prime Money Market
Fund, Bond Fund, Stock Fund, and Small Capitalization Fund may invest
generally include direct obligations of the U.S. Treasury (such as U.S.
Treasury bills, notes, and bonds) and obligations issued or guaranteed
by U.S. government agencies or instrumentalities. These securities are
backed by:
o the full faith and credit of the U.S. Treasury;
o the issuer's right to borrow from the U.S. Treasury;
o the discretionary authority of the U.S. government to purchase
certain obligations of the agency or instrumentality; or
o the credit of the agency or instrumentality issuing the
obligations.
Examples of agencies and instrumentalities whose obligations are
permissible investments but may not always receive financial support
from the U.S. government are: Federal Land Banks; Central Bank for
Cooperatives; Federal Intermediate Credit Banks; Federal Home Loan
Banks; Farmers Home Administration; and Federal National Mortgage
Association.
BANK INSTRUMENTS
Prime Money Market Fund, Bond Fund, Stock Fund, and Small Capitalization
Fund may invest in the instruments of banks and savings and loans whose
deposits are insured by the Bank Insurance Fund, which is administered
by the Federal Deposit Insurance Corporation ("FDIC"), or the Savings
Association Insurance Fund, which is administered by the FDIC, such as
certificates of deposit, demand and time deposits, savings shares, and
bankers' acceptances. These instruments are not necessarily guaranteed
by those organizations.
In addition, the Funds may invest in:
o Eurodollar Certificates of Deposit ("ECDs") issued by foreign
branches of U.S. or foreign banks;
o Eurodollar Time Deposits ("ETDs"), which are U.S. dollar-
denominated deposits in foreign branches of U.S. or foreign banks;
o Canadian Time Deposits, which are U.S. dollar-denominated deposits
issued by branches of major Canadian banks located in the United
States; and
o Yankee Certificates of Deposit ("Yankee CDs"), which are U.S.
dollar-denominated certificates of deposit issued by U.S. branches
of foreign banks and held in the United States.
FUTURES AND OPTIONS TRANSACTIONS
Bond Fund, Stock Fund, and Small Capitalization Fund may engage in
futures and options transactions. In an effort to reduce fluctuations in
the net asset value of shares of a Fund, a Fund may attempt to hedge all
or a portion of its portfolio by buying and selling financial futures
contracts, buying put options on portfolio securities and listed put
options on futures contracts, (or over-
the-counter put options on futures contracts in the case of Bond Fund)
and writing call options on futures contracts. A Fund may also write
covered call options on portfolio securities to attempt to increase its
current income. A Fund will maintain its positions in securities, option
rights, and segregated cash subject to puts and calls until the options
are exercised, closed, or have expired. With respect to Bond Fund, an
option position on financial futures contracts may be closed out over-
the-counter or on an exchange which provides a secondary market for
options of the same series. With respect to Stock Fund and Small
Capitalization Fund, an option position on financial futures contracts
may be closed out only on an exchange which provides a secondary market
for options of the same series.
FUTURES CONTRACTS
Bond Fund, Stock Fund, and Small Capitalization Fund may engage in
futures contracts. A futures contract is a firm commitment by two
parties: the seller who agrees to make delivery of the specific type of
security called for in the contract ("going short") and the buyer who
agrees to take delivery of the security ("going long") at a certain time
in the future. However, a stock index futures contract is an agreement
pursuant to which two parties agree to take or make delivery of an
amount of cash equal to the difference between the value of the index at
the close of the last trading day of the contract and the price at which
the index contract was originally written. No physical delivery of the
underlying securities in the index is made.
The purpose of the acquisition or sale of a futures contract by a Fund
is to protect the Fund from fluctuations in the value of its securities
caused by anticipated changes in interest rates or market conditions
without necessarily buying or selling the securities. For example, in
the fixed income securities market, price moves inversely to interest
rates. A rise in rates means a drop in price. Conversely, a drop in
rates means a rise in price. In order to hedge its holdings of fixed
income securities against a rise in market interest rates, Bond Fund
could enter into contracts to deliver securities at a predetermined
price (i.e., "go short") to protect itself against the possibility that
the prices of its fixed income securities may decline during the Fund's
anticipated holding period. Bond Fund would "go long" (agree to purchase
securities in the future at a predetermined price) to hedge against a
decline in market interest rates.
PUT OPTIONS ON FUTURES CONTRACTS
Bond Fund, Stock Fund, and Small Capitalization Fund may engage in put
options on futures contracts. A Fund may purchase listed put options on
futures contracts (or over-the-counter put options on futures contracts
in the case of Bond Fund). Unlike entering directly into a futures
contract, which requires the purchaser to buy a financial instrument on
a set date at a specified price, the purchase of a put option on a
futures contract entitles (but does not obligate) its purchaser to
decide on or before a future date whether to assume a short position at
the specified price. A Fund would purchase put options on futures
contracts to protect portfolio securities against decreases in value
resulting from market factors such as an anticipated increase in
interest rates.
Generally, if the hedged portfolio securities decrease in value during
the term of an option, the related futures contracts will also decrease
in value and the option will increase in value. In such an event, a Fund
will normally close out its option by selling an identical option. If
the hedge is successful, the proceeds received by a Fund upon the sale
of the second option may be large enough to offset both the premium paid
by the Fund for the original option plus the decrease in value of the
hedged securities.
Alternatively, a Fund may exercise its put option to close out the
position. To do so, it would simultaneously enter into a futures
contract of the type underlying the option (for a price less than the
strike price of the option) and exercise the option. The Fund would then
deliver the futures contract in return for payment of the strike price.
If the Fund neither closes out nor exercises an option, the option will
expire on the date provided in the option contract, and only the premium
paid for the contract will be lost.
CALL OPTIONS ON FUTURES CONTRACTS
Bond Fund, Stock Fund, and Small Capitalization Fund may engage in call
options on futures contracts. In addition to purchasing put options on
futures, Bond Fund, Stock Fund, and Small Capitalization Fund may write
listed call options on futures contracts (or over-the-counter call
options on futures contracts in the case of Bond Fund) to hedge its
respective portfolio against, for example, an increase in market
interest rates. When a Fund writes a call option on a futures contract,
it is undertaking the obligation of assuming a short futures position
(selling a futures contract) at the fixed strike price at any time
during the life of the option if the option is exercised. As market
interest rates rise (in the case of Bond Fund) or as stock prices fall
(in the case of Stock Fund and Small Capitalization Fund), causing the
prices of futures to go down, a Fund's obligation under a call option on
a future (to sell a futures contract) costs less to fulfill, causing the
value of a Fund's call option position to increase.
In other words, as the underlying future's price goes down below the
strike price, the buyer of the option has no reason to exercise the
call, so that a Fund keeps the premium received for the option. This
premium can help substantially to offset the drop in value of a Fund's
portfolio securities. Prior to the expiration of a call written by a
Fund, or exercise of it by the buyer, a Fund may close out the option by
buying an identical option. If the hedge is successful, the cost of the
second option will be less than the premium received by a Fund for the
initial option. The net premium income of a Fund will then substantially
offset the decrease in value of the hedged securities.
A Fund will not maintain open positions in futures contracts it has sold
or call options it has written on futures contracts if, in the
aggregate, the value of the open positions (marked to market) exceeds
the current market value of its securities portfolio plus or minus the
unrealized gain or loss on those open positions, adjusted for the
correlation of volatility between the hedged securities and the futures
contracts. If this limitation is exceeded at any time, a Fund will take
prompt action to close out a sufficient number of open contracts to
bring its open futures and options positions within this limitation.
"MARGIN" IN FUTURES TRANSACTIONS
Unlike the purchase or sale of a security, neither Bond Fund, Stock
Fund, nor Small Capitalization Fund pay or receive money upon the
purchase or sale of a futures contract. Rather, the Funds are required
to deposit an amount of "initial margin" in cash or U.S. Treasury bills
with the custodian (or the broker, if legally permitted). The nature of
initial margin in futures transactions is different from that of margin
in securities transactions in that futures contracts initial margin does
not involve a borrowing by a Fund to finance the transactions. Initial
margin is in the nature of a performance bond or good faith deposit on
the contract which is returned to a Fund upon termination of the futures
contract, assuming all contractual obligations have been satisfied.
A futures contract held by Bond Fund, Stock Fund, or Small
Capitalization Fund is valued daily at the official settlement price of
the exchange on which it is traded. Each day a Fund pays or receives
cash, called "variation margin," equal to the daily change in value of
the futures contract. This process is known as "marking to market."
Variation margin does not represent a borrowing or loan by a Fund but is
instead settlement between a Fund and the broker of the amount one would
owe the other if the futures contract expired. In computing its daily
net asset value, a Fund will mark to market its open futures positions.
The Funds are also required to deposit and maintain margin when they
write call options on futures contracts.
The Funds will comply with the following restrictions when purchasing
and selling futures contracts. First, the Funds will not participate in
futures transactions if the sum of its initial margin deposits on open
contracts will exceed 5% of the market value of its respective total
assets, after taking into account the unrealized profits and losses on
those contracts it has entered into. Second, the Funds will not enter
into these contracts for speculative purposes. Third, since the Funds do
not constitute a commodity pool, they will not market themselves as
such, nor serve as vehicles for trading in the commodities futures or
commodity options markets. Connected with this, the
Funds will disclose to all prospective investors, the limitations on
their futures and option transactions, and make clear that these
transactions are entered into only for bona fide hedging purposes, or
other permissible purposes pursuant to regulations promulgated by the
Commodity Futures Trading Commission ("CFTC"). Finally, because the
Funds will submit to the CFTC special calls for information, the Funds
will not register as commodities pool operators.
COLLATERALIZED MORTGAGE OBLIGATIONS (CMOS)
Bond Fund may invest in CMOs. Privately issued CMOs generally represent
an ownership interest in a pool of federal agency mortgage pass-through
securities, such as those issued by the Government National Mortgage
Association. The terms and characteristics of the mortgage instruments
may vary among pass-through mortgage loan pools.
The market for such CMOs has expanded considerably since its inception.
The size of the primary issuance market and the active participation in
the secondary market by securities dealers and other investors make
governmentrelated pools highly liquid.
Generally-speaking, the mortgages underlying mortgage-backed securities
often may be prepaid without penalty or premium. Therefore, mortgage-
backed securities are generally subject to higher prepayment risks than
most other types of debt instruments. Prepayment risks on mortgage
securities tend to increase during periods of declining mortgage
interest rates, because many borrowers refinance their mortgages to take
advantage of the more favorable rates. Depending upon market conditions,
the yield that the Fund receives from the reinvestment of such
prepayments, or any scheduled principal payments, may be lower than the
yield on the original mortgage security. As a consequence, mortgage
securities may be a less effective means of "locking in" interest rates
than other types of debt securities having the same stated maturity and
may also have less potential for capital appreciation. For certain types
of asset pools, such as collateralized mortgage obligations, prepayments
may be allocated to one tranche of securities ahead of other tranches,
in order to reduce the risk of prepayments for the other tranches.
Prepayments may result in a capital loss to the Fund to the extent that
the prepaid mortgage securities were purchased at a market premium over
their stated principal amount. Conversely, the prepayment of mortgage
securities purchased at a market discount from their stated principal
amount will accelerate the recognition of interest income by the Fund,
which would be taxed as ordinary income when distributed to the
shareholders.
REAL ESTATE INVESTMENT TRUSTS
The Small Capitalization Fund may purchase interests in real estate
investment trusts. Risks associated with real estate investments
include the fact that equity and mortgage real estate investment trusts
are dependent upon management skill and are not diversified, and are,
therefore, subject to the risk of financing single projects or unlimited
number of projects. They are also subject to heavy cash flow dependency,
defaults by borrowers, and self-liquidation. Additionally, equity real
estate investment trusts may be affected by any changes in the value of
the underlying property owned by the trusts, and mortgage real estate
investment trusts may be affected by the quality of any credit extended.
The investment adviser seeks to mitigate these risks by selecting real
estate investment trusts diversified by sector (shopping malls,
apartment building complexes, and health care facilities) and geographic
location.
CONVERTIBLE SECURITIES
When owned as part of a unit along with warrants, which entitle the
holder to buy the common stock, convertible securities function as
convertible bonds, except that the warrants generally will expire before
the bond's maturity. Convertible securities are senior to equity
securities, and therefore have a claim to assets of the corporation
prior to the holders of common stock in the case of liquidation.
However, convertible securities are generally subordinated to similar
nonconvertible securities of the same company. The interest income and
dividends from convertible bonds and preferred stocks provide a stable
stream of income with generally higher yields than common stocks, but
lower than non-convertible securities of similar quality.
The Funds will exchange or convert the convertible securities held in
their portfolios into shares of the underlying common stocks when, in
the investment adviser's opinion, the investment characteristics of the
underlying common shares will assist the Funds in achieving their
investment objectives. Otherwise, the Funds will hold or trade the
convertible securities. In selecting convertible securities for the
Fund, the Fund's adviser evaluates the investment characteristics of the
convertible security as a fixed income instrument, and the investment
potential of the underlying equity security for capital appreciation. In
evaluating these matters with respect to a particular convertible
security, the Fund's adviser considers numerous factors, including the
economic and political outlook, the value of the security relative to
other investment alternatives, trends in the determinants of the
issuer's profits, and the issuer's management capability and practices.
WARRANTS
Stock Fund and Small Capitalization Fund may invest in warrants.
Warrants are basically options to purchase common stock at a specific
price (usually at a premium above the market value of the optioned
common stock at issuance) valid for a specific period of time. Warrants
may have a life ranging from less than a year to twenty years or may be
perpetual. However, most warrants have expiration dates after which they
are worthless. In addition, if the market price of the common stock does
not exceed the warrant's exercise price during the life of the warrant,
the warrant will expire as worthless. Warrants have no voting rights,
pay no dividends, and have no rights with respect to the assets of the
corporation issuing them. The percentage increase or decrease in the
market price of the warrant may tend to be greater than the percentage
increase or decrease in the market price of the optioned common stock.
PORTFOLIO TURNOVER
For the years ended April 30, 1995 and 1994 , the Bond and Stock Funds'
portfolio turnover rates were 262% and 46%, and 344% and 89%,
respectively. For the period from February 27, 1995 (date of initial
public investment) to April 30, 1995, the Small Capitalization Fund
portfolio turnover rate was 8%.
INVESTMENT LIMITATIONS
Issuing Senior Securities and Borrowing Money
The Funds will not issue senior securities except that a Fund may
borrow money directly or through reverse repurchase agreements in
amounts up to one-third of the value of its total assets,
including the amount borrowed; and except to the extent that a
Fund may enter into futures contracts. The Funds will not borrow
money or engage in reverse repurchase agreements for investment
leverage, but rather as a temporary, extraordinary, or emergency
measure or to facilitate management of the portfolio by enabling a
Fund to meet redemption requests when the liquidation of portfolio
securities is deemed to be inconvenient or disadvantageous. A Fund
will not purchase any securities while any borrowings in excess of
5% of its total assets are outstanding. During the period any
reverse repurchase agreements are outstanding, a Fund will
restrict the purchase of portfolio securities to money market
instruments maturing on or before the expiration date of the
reverse repurchase agreements, but only to the extent necessary to
assure completion of the reverse repurchase agreements.
Selling Short and Buying on Margin
The Funds will not sell any securities short or purchase any
securities on margin, but may obtain such short-term credits as
are necessary for clearance of purchases and sales of securities.
The deposit or payment by Bond Fund, Stock Fund, or Small
Capitalization Fund of initial or variation margin in connection
with futures contracts or related options transactions is not
considered the purchase of a security on margin.
Pledging Assets
The Funds will not mortgage, pledge, or hypothecate any assets,
except to secure permitted borrowings. In these cases U.S.
Treasury Money Market Fund and Prime Money Market Fund may pledge
assets having a market value not exceeding the lesser of the
dollar amounts borrowed or 10% of the value of total assets of a
Fund at the time of the pledge, while Bond Fund, Stock Fund, and
Small Capitalization Fund may pledge assets having a value of 15%
of assets taken at cost. For purposes of this restriction, (a) the
deposit of assets in escrow in connection with the writing of
covered put or call options and the purchase of securities on a
when-issued basis; and (b) collateral arrangements with respect to
(i) the purchase and sale of stock options and (ii) initial or
variation margin for futures contracts will not be deemed to be
pledges of a Fund's assets. Margin deposits for the purchase and
sale of futures contracts and related options are not deemed to be
a pledge.
Lending Cash or Securities
The Funds will not lend any of their respective assets except
portfolio securities up to one-third of the value of total assets.
This shall not prevent a Fund from purchasing or holding U.S.
government obligations, money market instruments, variable amount
demand master notes, bonds, debentures, notes, certificates of
indebtedness, or other debt securities, entering into repurchase
agreements, or engaging in other transactions where permitted by a
Fund's investment objective, policies, and limitations or the
Trust's Declaration of Trust.
Investing in Restricted Securities
Prime Money Market Fund, Bond Fund, Stock Fund, and Small
Capitalization Fund will not invest more than 10% of net assets in
securities subject to restrictions on resale under the Securities
Act of 1933, except for commercial paper issued under Section 4(2)
of the Securities Act of 1933 and certain other restricted
securities which meet the criteria for liquidity as established by
the Board of Trustees.
U.S. Treasury Money Market Fund will not purchase or sell
securities which are restricted as to resale under federal
securities law.
Investing in Commodities
None of the Funds will invest in commodities, except to the extent
that Bond Fund, Stock Fund, and Small Capitalization Fund may
engage in transactions involving futures contracts or options on
futures contracts.
Investing in Real Estate
None of the Funds will purchase or sell real estate, including
limited partnership interests, although Prime Money Market Fund,
Bond Fund, Stock Fund, and Small Capitalization Fund may invest in
securities of issuers whose business involves the purchase or sale
of real estate or in securities which are secured by real estate
or interests in real estate.
Diversification of Investments
With respect to 75% of the value of its respective total assets,
Prime Money Market Fund, Bond Fund, Stock Fund, and Small
Capitalization Fund will not purchase securities issued by any one
issuer (other than cash, cash items or securities issued or
guaranteed by the government of the United States or its agencies
or instrumentalities and repurchase agreements collateralized by
such securities), if as a result more than 5% of the value of its
total assets would be invested in the securities of that issuer.
The Funds will not acquire more than 10% of the outstanding voting
securities of any one issuer.
Concentration of Investments
No Fund will invest 25% or more of the value of its respective
total assets in any one industry (other than securities issued by
the U.S. government, its agencies, or instrumentalities or
repurchase agreements collateralized by these securities), except
that Prime Money Market Fund may invest 25% or more of the value
of its total assets in cash or cash items, securities issued or
guaranteed by the U.S. government, its agencies, or
instrumentalities, or instruments secured by these money market
instruments (i.e., repurchase agreements).
Underwriting
A Fund will not underwrite any issue of securities, except as a
Fund may be deemed to be an underwriter under the Securities Act
of 1933 in connection with the sale of securities in accordance
with its investment objective, policies, and limitations.
The above limitations cannot be changed with respect to a Fund without
approval of holders of a majority of that Fund's shares. The following
limitations may be changed by the Trustees without shareholder approval.
Shareholders will be notified before any material change in these
limitations becomes effective.
Investing in Illiquid Securities
The Bond Fund, Stock Fund, and Small Capitalization Fund will not
invest more than 15% and the Prime Money Market Fund will not
invest more than 10% of the value of their respective net assets
in illiquid securities, including repurchase agreements providing
for settlement more than seven days after notice; and, in the case
of Bond Fund, Stock Fund, and Small Capitalization Fund, including
over-the-counter options; in the case of Prime Money Market Fund,
Bond Fund, Stock Fund, and Small Capitalization Fund, including
certain restricted securities not determined by the Trustees to be
liquid; and, in the case of Prime Money Market Fund, non-
negotiable fixed income time deposits with maturities over seven
days.
Investing in Securities of Other Investment Companies
The Funds will limit their respective investment in other
investment companies to no more than 3% of the total outstanding
voting stock of any investment company, invest no more than 5% of
total assets in any one investment company, or invest more than
10% of total assets in investment companies in general. U.S.
Treasury Money Market Fund and Prime Money Market Fund will limit
their investments in the securities of other investment companies
to those of money market funds having investment objectives and
policies similar to their own. The Funds will purchase securities
of closed-end investment companies only in open market
transactions involving only customary broker's commissions.
However, these limitations are not applicable if the securities
are acquired in a merger, consolidation, reorganization, or
acquisition of assets.
Investing in New Issuers
A Fund will not invest more than 5% of the value of its total
assets in securities of issuers which have records of less than
three years of continuous operations, including the operation of
any predecessor.
Investing in Issuers Whose Securities are Owned by Officers and
Trustees of the Trust
A Fund will not purchase or retain the securities of any issuer if
the officers and Trustees of the Trust or a Fund's investment
adviser owning individually more than 1/2 of 1% of the issuer's
securities together own more than 5% of the issuer's securities.
Investing in Minerals
A Fund will not purchase interests in oil, gas, or other mineral
exploration or development programs or leases, except it may
purchase the securities of issuers which invest in or sponsor such
programs.
Arbitrage Transactions
A Fund will not enter into transactions for the purpose of
engaging in arbitrage.
Options and Related Transactions
A Fund will not purchase put or call options on securities or on
futures contracts, except that Bond Fund, Stock Fund and Small
Capitalization Fund may engage in put and call options, futures
and options on futures.
Purchasing Securities to Exercise Control
A Fund will not purchase securities of a company for the purpose
of exercising control or management.
Investing in Warrants
The Funds will not invest in warrants, except that Stock Fund and
Small Capitalization Fund may invest not more than 5% of their
respective net assets in warrants, including those acquired in
units or attached to other securities. To comply with certain
state restrictions, the Funds will limit their investment in such
warrants not listed on the New York or American Stock Exchanges to
2% of their respective net assets. (If state restrictions change,
this latter restriction may be revised without notice to
shareholders.) For purposes of this investment restriction,
warrants will be valued at the lower of cost or market, except
that warrants acquired by the Funds in units with or attached to
securities may be deemed to be without value.
Except with respect to the Funds' policy of borrowing money, if a
percentage limitation is adhered to at the time of investment, a later
increase or decrease in percentage resulting from any change in value or
net assets will not result in a violation of such restriction.
The Funds did not borrow money or pledge securities in excess of 5% of
the value of their respective net assets in the last fiscal year and
have no present intent to do so in the coming fiscal year.
To comply with registration requirements in certain states, Bond Fund,
Stock Fund and Small Capitalization Fund (1) will limit the aggregate
value of the assets underlying covered call options or put options
written by a Fund to not more than 25% of its net assets, (2) will limit
the premiums paid for options purchased by a Fund to 5% of its net
assets, and (3) will limit the margin deposits on futures contracts
entered into by a Fund to 5% of its net assets. Stock Fund and Small
Capitalization Fund will not invest more than 5% of their respective
total assets in securities subject to restrictions on resale under the
Securities Act of 1933, except for commercial paper issued under Section
4(2) of the Securities Act of 1933 and certain other restricted
securities which meet the criteria for liquidity as established by the
Trustees. (If state requirements change, these restrictions may be
revised without shareholder notification.)
For purposes of its policies and limitations, the Funds consider
certificates of deposit and demand and time deposits issued by a U.S.
branch of a domestic bank or savings and loan having capital, surplus,
and undivided profits in excess of $100,000,000 at the time of
investment to be "cash items."
RIMCO MONUMENT FUNDS MANAGEMENT
OFFICERS AND TRUSTEES
Officers and Trustees are listed with their addresses, principal
occupations during the past five years, and their present positions,
including any affiliation with Riggs Investment Management Corporation,
The Riggs National Bank of Washington D.C., Federated Investors,
Federated Securities Corp., Federated Services Company and Federated
Administrative Services.

John F. Donahue@*
Federated Investors Tower
Pittsburgh, PA
Birthdate: July 28, 1924
Chairman and Trustee
Chairman and Trustee, Federated Investors, Federated Advisers,
Federated Management, and Federated Research; Chairman and Director,
Federated Research Corp.; Chairman, Passport Research, Ltd.; Director,
AEtna Life and Casualty Company; Chief Executive Officer and Director,
Trustee, or Managing General Partner of the Funds. Mr. Donahue is the
father of J. Christopher Donahue, President and Director of the
Company.

John T. Conroy, Jr.
Wood/IPC Commercial Department
John R. Wood and Associates, Inc., Realtors
3255 Tamiami Trail North
Naples, FL
Birthdate: June 23, 1937
Trustee
President, Investment Properties Corporation; Senior Vice-President,
John R. Wood and Associates, Inc., Realtors; President, Northgate
Village Development Corporation; Partner or Trustee in private real
estate ventures in Southwest Florida; Director, Trustee, or Managing
General Partner of the Funds; formerly, President, Naples Property
Management, Inc.

William J. Copeland
One PNC Plaza - 23rd Floor
Pittsburgh, PA
Birthdate: July 4, 1918
Trustee
Director and Member of the Executive Committee, Michael Baker, Inc.;
Director, Trustee, or Managing General Partner of the Funds; formerly,
Vice Chairman and Director, PNC Bank, N.A., and PNC Bank Corp. and
Director, Ryan Homes, Inc.

James E. Dowd
571 Hayward Mill Road
Concord, MA
Birthdate: May 18, 1922
Trustee
Attorney-at-law; Director, The Emerging Germany Fund, Inc.; Director,
Trustee, or Managing General Partner of the Funds.

Lawrence D. Ellis, M.D.*
3471 Fifth Avenue, Suite 1111
Pittsburgh, PA
Birthdate: October 11, 1932
Trustee
Professor of Medicine and Member, Board of Trustees, University of
Pittsburgh; Medical Director, University of Pittsburgh Medical Center -
Downtown; Member, Board of Directors, University of Pittsburgh Medical
Center; formerly, Hematologist, Oncologist, and Internist, Presbyterian
and Montefiore Hospitals; Director, Trustee, or Managing General Partner
of the Funds.

Edward L. Flaherty, Jr.@
Henny, Kochuba, Meyer and Flaherty
Two Gateway Center - Suite 674
Pittsburgh, PA
Birthdate: June 18, 1924
Trustee
Attorney-at-law; Partner, Henny, Kochuba, Meyer and Flaherty; Director,
Eat'N Park Restaurants, Inc., and Statewide Settlement Agency, Inc.;
Director, Trustee, or Managing General Partner of the Funds; formerly,
Counsel, Horizon Financial, F.A., Western Region.

Edward C. Gonzales
Federated Investors Tower
Pittsburgh, PA
Birthdate: October 22, 1930
President, Treasurer, and Trustee
Vice President, Treasurer, and Trustee, Federated Investors; Vice
President and Treasurer, Federated Advisers, Federated Management,
Federated Research, Federated Research Corp., and Passport Research,
Ltd.; Executive Vice President, Treasurer, and Director, Federated
Securities Corp.; Trustee, Federated Services Company and Federated
Shareholder Services; Chairman, Treasurer, and Trustee, Federated
Administrative Services; Trustee or Director of some of the Funds; Vice
President and Treasurer of the Funds.

Peter E. Madden
70 Westcliff Road
Westin, MA
Birthdate: March 16, 1942
Trustee
Consultant; State Representative, Commonwealth of Massachusetts;
Director, Trustee, or Managing General Partner of the Funds; formerly,
President, State Street Bank and Trust Company and State Street Boston
Corporation.

Gregor F. Meyer
Henny, Kochuba, Meyer and Flaherty
Two Gateway Center - Suite 674
Pittsburgh, PA
Birthdate: October 6, 1926
Trustee
Attorney-at-law; Partner, Henny, Kochuba, Meyer and Flaherty; Chairman,
Meritcare, Inc.; Director, Eat'N Park Restaurants, Inc.; Director,
Trustee, or Managing General Partner of the Funds; formerly, Vice
Chairman, Horizon Financial, F.A.

John E. Murray, Jr., J.D., S.J.D.
President, Duquesne University
Pittsburgh, PA
Birthdate: December 20, 1932
Trustee
President, Law Professor, Duquesne University; Consulting Partner,
Mollica, Murray and Hogue; Director, Trustee or Managing General
Partner of the Funds.

Wesley W. Posvar
1202 Cathedral of Learning
University of Pittsburgh
Pittsburgh, PA
Birthdate: September 14, 1925
Trustee
N
National Advisory Council for Environmental Policy and Technology.

Marjorie P. Smuts
4905 Bayard Street
Pittsburgh, PA
Birthdate: July 21, 1935
Trustee
Public relations/marketing consultant; Director, Trustee, or Managing
General Partner of the Funds.

J. Christopher Donahue *
Federated Investors Tower
Pittsburgh, PA
Birthdate: April 11, 1949
Vice President
President and Trustee, Federated Investors, Federated Advisers,
Federated Management, and Federated Research; President and Director,
Federated Research Corp.; President, Passport Research, Ltd.; Trustee,
Federated Administrative Services, Federated Services Company, and
Federated Shareholder Services; President or Vice President of the
Funds; Director, Trustee, or Managing General Partner of some of the
Funds. Mr. Donahue is the son of John F. Donahue, Chairman and Director
of the Company.

Richard B. Fisher
Federated Investors Tower
Pittsburgh, PA
Birthdate: May 17, 1923
Vice President
Executive Vice President and Trustee, Federated Investors; Director,
Federated Research Corp.; Chairman and Director, Federated Securities
Corp.; President or Vice President of some of the Funds; Director or
Trustee of some of the Funds.

John W. McGonigle
Federated Investors Tower
Pittsburgh, PA
Birthdate: October 26, 1938
Vice President and Secretary
the
the Funds.

Jeffrey W. Sterling
Federated Investors Tower
Pittsburgh, PA
Birthdate: February 5, 1947
Vice President and Assistant Treasurer
Vice President, Federated Administrative Services; Vice President and
Assistant Treasurer of some of the Funds.
* This Director is deemed to be an "interested person" as defined in the
Investment Company Act of 1940, as amended.
@ Member of the Executive Committee. The Executive Committee of the
Board of Directors handles the responsibilities of the Board of
Directors between meetings of the Board.
Officers and Directors own less than 1% of the Fund's outstanding
Shares.
As used in the table above, "The Funds" and "Funds" mean the following
investment companies: American Leaders Fund, Inc.; Annuity Management
Series; Arrow Funds; Automated Cash Management Trust; Automated
Government Money Trust; California Municipal Cash Trust; Cash Trust
Series II; Cash Trust Series, Inc.; DG Investor Series; Edward D. Jones
& Co. Daily Passport Cash Trust; Federated ARMs Fund; Federated Exchange
Fund, Ltd.; Federated GNMA Trust; Federated Government Trust; Federated
Growth Trust; Federated High Yield Trust; Federated Income Securities
Trust; Federated Income Trust; Federated Index Trust; Federated
Institutional Trust; Federated Intermediate Government Trust; Federated
Master Trust; Federated Municipal Trust; Federated Short-Intermediate
Government Trust; Federated Short-Term U.S. Government Trust; Federated
Stock Trust; Federated Tax-Free Trust; Federated U.S. Government Bond
Fund; First Priority Funds; Fixed Income Securities, Inc.; Fortress
Adjustable Rate U.S. Government Fund, Inc.; Fortress Municipal Income
Fund, Inc.; Fortress Utility Fund, Inc.; Fund for U.S. Government
Securities, Inc.; Government Income Securities, Inc.; High Yield Cash
Trust; Insight Institutional Series, Inc.; Insurance Management Series;
Intermediate Municipal Trust; International Series, Inc.; Investment
Series Funds, Inc.; Investment Series Trust; Liberty Equity Income Fund,
Inc.; Liberty High Income Bond Fund, Inc.; Liberty Municipal Securities
Fund, Inc.; Liberty U.S. Government Money Market Trust; Liberty Term
Trust, Inc. - 1999; Liberty Utility Fund, Inc.; Liquid Cash Trust;
Managed Series Trust; Money Market Management, Inc.; Money Market
Obligations Trust; Money Market Trust; Municipal Securities Income
Trust; Newpoint Funds; New York Municipal Cash Trust; 111 Corcoran
Funds; Peachtree Funds; The Planters Funds; RIMCO Monument Funds; The
Shawmut Funds; Short-Term Municipal Trust; Star Funds; The Starburst
Funds; The Starburst Funds II; Stock and Bond Fund, Inc.; Sunburst
Funds; Targeted Duration Trust; Tax-Free Instruments Trust; Trademark
Funds; Trust for Financial Institutions; Trust For Government Cash
Reserves; Trust for Short-Term U.S. Government Securities; Trust for
U.S. Treasury Obligations; The Virtus Funds; World Investment Series,
Inc.
FUND OWNERSHIP
Officers and Trustees own less than 1% of the outstanding shares of each
Fund. The following list indicates the beneficial ownership of
shareholders who are the beneficial owners of more than 5% of the
outstanding Shares of the following Funds as of June 6, 1995, Riggs
National Bank, acting in various capacities for numerous accounts owned,
of record approximately: 4,296,677 shares (86.6%) of Bond Fund;
213,555,882 shares (82.5%) of Prime Money Market Fund; 4,148,380 shares
(77.9%) of Stock Fund; 70,840,499.6shares (82.5%) of U.S. Treasury Money
Market Fund; and 922,215.3 shares (98.0%) of Small Capitalization Fund.
As of June 6, 1995, Georgetown University, Washington, D.C., owned
approximately 20,027,293.0 shares (7.8%) of Prime Money Market Fund. As
of June 6, 1995, Legal Services Corporation, Washington, D.C. owned
approximately 5,054,863.8 shares (5.9%) of U.S. Treasury Money Market
Fund.
TRUSTEES COMPENSATION
AGGREGATE
NAME , COMPENSATION
POSITION WITH FROM
TRUST*# TRUST

John F. Donahue $ 0
Chairman and Trustee
John T. Conroy, Jr. $1,726
Trustee
William J. Copeland $ 1,726
Trustee
James E. Dowd $ 1,726
Trustee
Lawrence D. Ellis, M.D. $1,570
Trustee
Edward L. Flaherty, Jr. $ 1,726
Trustee
Edward C. Gonzales $0
President, Treasurer,
and Trustee
Peter E. Madden $ 1,331
Trustee
Gregor F. Meyer $ 1,570
Trustee
John E. Murray, Jr. $ 554
Trustee
Wesley W. Posvar $ 1,570
Trustee
Marjorie P. Smuts $ 1,570
Trustee

*Information is furnished for the fiscal year ended April 30, 1995.
#The aggregate compensation is provided for the Trust which is comprised
of 5 portfolios.
TRUSTEE LIABILITY
The Trust's Declaration of Trust provides that the Trustees will not be
liable for errors of judgment or mistakes of fact or law. However, they
are not protected against any liability to which they would otherwise be
subject by reason of willful misfeasance, bad faith, gross negligence,
or reckless disregard of the duties involved in the conduct of their
office.
INVESTMENT ADVISORY SERVICES
ADVISER TO THE TRUST
The Trust's investment adviser is Riggs Investment Management
Corporation ("RIMCO"). It is a subsidiary of The Riggs National Bank of
Washington D.C. ("Riggs National Bank"). 11 The adviser shall not be
liable to the Trust, a Fund, or any shareholder of any of the Funds for
any losses that may be sustained in the purchase, holding, or sale of
any security or for anything done or omitted by it, except acts or
omissions involving willful misfeasance, bad faith, gross negligence, or
reckless disregard of the duties imposed upon it by its contract with
the Trust.
Because of the internal controls maintained by Riggs National Bank to
restrict the flow of non-public information, Fund investments are
typically made without any knowledge of Riggs National Bank's or its
affiliates' lending relationships with an issuer.
ADVISORY FEES
For its advisory services, RIMCO receives an annual investment advisory
fee as described in the prospectus. For the years ended April 30, 1995,
1994 and 1993, the adviser earned fees from the U.S. Treasury Money
Market Fund of $471,274, $603,612, and $357,883, respectively, of which
$188,510, $187,081, and $211,661, respectively, were waived. For the
years ended April 30, 1995, 1994 and 1993, the adviser earned fees from
the Prime Money Market Fund of $1,722,083, $1,749,364, and $1,359,233,
respectively, of which $818,546, $973,920, and $779,685, respectively,
were waived. For the years ended April 30, 1995, 1994, and for the
period from May 11, 1992 (date of initial public investment), to April
30, 1993, the adviser earned fees from the Bond Fund of $346,821,
$361,465 and $274,123 of which $185,307, $230,341 and $234,520,
respectively, were waived. For the years ended April 30, 1995, 1994 and
for the period from the date of initial public investment, May 11, 1992,
to April 30, 1993, the adviser earned fees from the Stock Fund of
$450,390, $366,126, and $234,851, respectively, of which $82,877,
$96,024 and $150,164, respectively, were waived. For the period from
February 27, 1995 (date of initial public investment) to April 30, 1995,
the adviser earned fees from the Small Capitalization Fund of $9,220,
all of which was waived
State Expense Limitations
The adviser has undertaken to comply with the expense limitations
established by certain states for investment companies whose
shares are registered for sale in those states. If a Fund's normal
operating expenses (including the investment advisory fee, but not
including brokerage commissions, interest, taxes, and
extraordinary expenses) exceed 2 1/2% per year of the first $30
million of average net assets, 2% per year of the next $70 million
of average net assets, and 1 1/2% per year of the remaining
average net assets, the adviser will reimburse the Fund for its
expenses over the limitation.
If a Fund's monthly projected operating expenses exceed this
limitation, the investment advisory fee paid will be reduced by
the amount of the excess, subject to an annual adjustment. If the
expense limitation is exceeded, the amount to be reimbursed by the
adviser will be limited, in any single fiscal year, by the amount
of the investment advisory fee. This arrangement is not part of
the advisory contract and may be amended or rescinded in the
future.
ADMINISTRATIVE SERVICES
Federated Administrative Services, which is a subsidiary of Federated
Investors, provides administrative personnel and services to the Funds
for the fees set forth in the prospectus. For the years ended April 30,
1995, 1994 and 1993, Federated Administrative Services earned from the
U.S. Treasury Money Market Fund fees equal to $126,640, $160,619, and
$100,328, respectively, none of which was waived. For the years ended
April 30, 1995, 1994 and 1993, Federated Administrative Services earned
from Prime Money Market Fund fees equal to $462,172 $462,675, and
$380,420, respectively, of which $0, $0, and $51,642, respectively, were
waived. For the years ended April 30, 1995, 1994 and for the period from
the date of initial public investment, May 11, 1992, to April 30, 1993,
Federated Administrative Services earned from the Bond Fund fees equal
to $62,130, $64,134 and $51,181, respectively, of which $0, $0 and
$3,654, respectively, were waived. For the year ended April 30, 1995,
1994 and for the period from the date of initial public investment, May
11, 1992, to April 30, 1993, Federated Administrative Services earned
from the Stock Fund fees equal to $80,732, $64,944 and $43,863,
respectively, of which $0, $0 and $1,395, respectively, were waived.
For the period from February 27, 1995 (date of initial public
investment), to April 30, 1995, Federated Administrative Services earned
from the Small Capitalization Fund fees equal to $8,493, all of which
was waived.
Federated Services Company ("FServ") is the Funds' portfolio accountant,
transfer agent and dividend disbursing agent. For the years ended April
30, 1995, 1994 and 1993, FServ received from the U.S. Treasury Money
Market Fund fees equal to $85,400, $45,458, and $47,961, respectively.
For the years ended April 30, 1995, 1994 and 1993, FServ received from
the Prime Money Market Fund fees equal to $98,594, $106,071, and
$76,031, respectively. For the years ended April 30, 1995, 1994 and for
the period from the date of initial public investment, May 11, 1992, to
April 30, 1993, FServ received from the Bond Fund fees equal to $87,375,
$78,636 and $45,062, respectively. For the year ended April 30, 1995,
1994 and for the period from the date of initial public investment, May
11, 1992, to April 30, 1993, FServ received from the Stock Fund fees
equal to $83,336, $81,432 and $38,326, respectively. For the period from
February 27, 1995 (date of initial public investment), to April 30,
1995, FServ received from the Small Capitalization Fund fees equal to
$12,602.
CUSTODIAN
For its service as custodian, Riggs National Bank may receive an annual
fee, payable monthly based upon the Fund's average aggregate daily net
assets. In addition, Riggs National Bank is reimbursed for its out-of-
pocket expenses.
BROKERAGE TRANSACTIONS
When selecting brokers and dealers to handle the purchase and sale of
portfolio instruments, the adviser looks for prompt execution of the
order at a favorable price. In working with dealers, the adviser will
generally use those who are recognized dealers in specific portfolio
instruments, except when a better price and execution of the order can
be obtained elsewhere. The adviser makes decisions on portfolio
transactions and selects brokers and dealers subject to guidelines
established by the Board of Trustees.
The adviser may select brokers and dealers who offer brokerage and
research services. These services may be furnished directly to the Funds
or to the adviser and may include:
o advice as to the advisability of investing in securities;
o security analysis and reports;
o economic studies;
o industry studies;
o receipt of quotations for portfolio evaluations; and
o similar services.
The adviser and its affiliates exercise reasonable business judgment in
selecting brokers who offer brokerage and research services to execute
securities transactions. They determine in good faith that commissions
charged by such persons are reasonable in relationship to the value of
the brokerage and research services provided.
Research services provided by brokers may be used by the adviser in
advising the Funds and other accounts. To the extent that receipt of
these services may supplant services for which the adviser or its
affiliates might otherwise have paid, it would tend to reduce their
expenses.
For the years ended April 30, 1995, and 1994, and for the period from
May 11, 1992 (date of initial public investment), to April 30, 1993, the
Stock Fund paid $99,125, $16,091 and $117,893, respectively, as
brokerage commissions on brokerage transactions. For the period from
February 27, 1995 (date of initial public investment), to April 30,
1995, the Small Capitalization Fund paid $2,511 as brokerage commissions
on brokerage transactions.
PURCHASING SHARES
Shares of U.S. Treasury Money Market Fund and Prime Money Market Fund
are sold at their net asset value without a sales charge. Shares of Bond
Fund, Stock Fund, and Small Capitalization Fund are sold at their net
asset value plus a sales charge. Shares of the Funds are sold on days on
which both the New York Stock Exchange and the Federal Reserve Wire are
open for business. The procedure for purchasing shares of the Funds is
explained in the prospectus under "Investing in the Funds."
CONVERSION TO FEDERAL FUNDS
It is the Funds' policy to be as fully invested as possible so that
maximum interest or dividends may be earned. To this end, all payments
from shareholders must be in federal funds or be converted into federal
funds. Riggs National Bank acts as the shareholder's agent in depositing
checks and converting them to federal funds.
DETERMINING NET ASSET VALUE
U.S. Treasury Money Market Fund and Prime Money Market Fund attempt to
stabilize the value of their respective shares at $1.00. Net asset
values of Bond Fund, Stock Fund and Small Capitalization Fund generally
change each day. The days on which the net asset value is calculated by
these Funds are described in the prospectus.
DETERMINING MARKET VALUE OF SECURITIES
The market value of Bond Fund's, Stock Fund's, and Small Capitalization
Fund's portfolio securities are determined as follows:
o for equity securities, according to the last sale price on a
national securities exchange, if available;
o in the absence of recorded sales for listed equity securities,
according to the mean between the last closing bid and asked
prices;
o for unlisted equity securities, the latest bid prices;
o for bonds and other fixed income securities, as determined by an
independent pricing service;
o for short-term obligations, according to the mean between bid and
asked prices as furnished by an independent pricing service or for
short-term obligations with remaining maturities of less than 60
days, at the time of purchase, at amortized cost; or
o for all other securities, at fair value as determined in good
faith by the Board of Trustees.
Prices provided by independent pricing services may be determined
without relying exclusively on quoted prices and may reflect:
institutional trading in similar groups of securities, yield, quality,
coupon rate, maturity, type of issue, trading characteristics, and other
market data.
The Funds will value futures contracts, options, and put options on
futures and at their market values established by the exchanges at the
close of option trading on such exchanges unless the Board of Trustees
determine in good faith that another method of valuing option positions
is necessary to appraise their fair value.
USE OF THE AMORTIZED COST METHOD
With respect to U.S. Treasury Money Market Fund and Prime Money Market
Fund, the Trustees have decided that the best method for determining the
value of portfolio instruments is amortized cost. Under this method,
portfolio instruments are valued at the acquisition cost as adjusted for
amortization of premium or accumulation of discount rather than at
current market value.
A Fund's use of the amortized cost method of valuing portfolio
instruments depends on its compliance with certain conditions in Rule 2a-
7 (the "Rule") promulgated by the Securities and Exchange Commission
under the Investment Company Act of 1940. Under the Rule, the Trustees
must establish procedures reasonably designed to stabilize the net asset
value per share, as computed for purposes of distribution and
redemption, at $1.00 per share, taking into account current market
conditions and a Fund's investment objective.
Under the Rule a Fund is permitted to purchase instruments which are
subject to demand features or standby commitments. As defined by the
Rule, a demand feature entitles a Fund to receive the principal amount
of the instrument from the issuer or a third party on (1) no more than
30 days' notice or (2) at specified intervals not exceeding one year on
no more than 30 days' notice. A standby commitment entitles a Fund to
achieve same day settlement and to receive an exercise price equal to
the amortized cost of the underlying instrument plus accrued interest at
the time of exercise.
Monitoring Procedures
The Trustees' procedures include monitoring the relationship
between the amortized cost value per share and the net asset value
per share based upon available indications of market value. The
Trustees will decide what, if any, steps should be taken if there
is a difference of more than 0.5 of 1% between the two values. The
Trustees will take any steps they consider appropriate (such as
redemption in kind or shortening the average portfolio maturity)
to minimize any material dilution or other unfair results arising
from differences between the two methods of determining net asset
value.
Investment Restrictions
The Rule requires that a Fund limit its investments to instruments
that, in the opinion of the Board of Trustees, present minimal
credit risk and that, if rated, meet minimum rating standards set
forth in the Rule. If the instruments are not rated, the Trustees
must determine that they are of comparable quality. Shares of
investment companies purchased by the Funds will meet these same
criteria and will have investment policies consistent with Rule 2a-
7. The Rule also requires a Fund to maintain a dollar-weighted
average portfolio maturity (not more than 90 days) appropriate to
the objective of maintaining a stable net asset value of $1.00 per
share. In addition, no instrument with a remaining maturity of
more than 13 months can be purchased by a Fund.
Should the disposition of a portfolio security result in a dollar
weighted average portfolio maturity of more than 90 days, a Fund
will invest its available cash to reduce the average maturity to
90 days or less as soon as possible.
A Fund may attempt to increase yield by trading portfolio securities to
take advantage of short-term market variations. This policy may, from
time to time, result in high portfolio turnover. Under the amortized
cost method of valuation, neither the amount of daily income nor the net
asset value is affected by any unrealized appreciation or depreciation
of the portfolio.
In periods of declining interest rates, the indicated daily yield on
shares of a Fund computed by dividing the annualized daily income on a
Fund's portfolio by the net asset value computed as above may tend to be
higher than a similar computation made by using a method of valuation
based upon market prices and estimates.
In periods of rising interest rates, the indicated daily yield on shares
of the Fund computed the same way may tend to be lower than a similar
computation made by using a method of calculation based upon market
prices and estimates.
REDEEMING SHARES
Each Fund redeems shares at the next computed net asset value after
Riggs National Bank receives the redemption request. Redemption
procedures are explained in the prospectus under "Redeeming Shares."
REDEMPTION IN KIND
Although the Trust intends to redeem shares in cash, it reserves the
right under certain circumstances to pay the redemption price in whole
or in part by a distribution of securities from a Fund's portfolio. To
the extent available, such securities will be readily marketable.
Redemption in kind will be made in conformity with applicable Securities
and Exchange Commission rules, taking such securities at the same value
employed in determining net asset value and selecting the securities in
a manner the Board of Trustees determine to be fair and equitable.
The Trust has elected to be governed by Rule 18f-1 of the Investment
Company Act of 1940 under which the Trust is obligated to redeem shares
for any one shareholder in cash only up to the lesser of $250,000 or 1%
of a Fund's net asset value during any 90-day period.
TAX STATUS
THE FUNDS' TAX STATUS
The Funds will pay no federal income tax because they expect to meet the
requirements of Subchapter M of the Internal Revenue Code applicable to
regulated investment companies and to receive the special tax treatment
afforded to such companies. To qualify for this treatment, each Fund
must, among other requirements:
o derive at least 90% of its gross income from dividends, interest,
and gains from the sale of securities;
o derive less than 30% of its gross income from the sale of
securities held less than three months;
o invest in securities within certain statutory limits; and
o distribute to its shareholders at least 90% of its net income
earned during the year.
SHAREHOLDERS' TAX STATUS
Shareholders are subject to federal income tax on dividends received as
cash or additional shares. With respect to the U.S. Treasury Money
Market Fund, Prime Money Market Fund, and Bond Fund, no portion of any
income dividend paid by a Fund is expected to be eligible for the
dividends received deduction available to corporations. With respect to
the Stock Fund and the Small Capitalization Fund, the dividends received
deduction for corporations will apply to ordinary income distributions
to the extent the distribution represents amounts that would qualify for
the dividends received deduction to a particular fund if that fund were
a regular corporation and to the extent designed by a fund as so
qualifying. These dividends, and any short-term capital gains, are
taxable as ordinary income.
CAPITAL GAINS
Capital gains experienced by U.S. Treasury Money Market Fund and Prime
Money Market Fund could result in an increase in dividends. Capital
losses could result in a decrease in dividends. If for some
extraordinary reason these Funds realize net long-term capital gains,
such net long-term capital gains will be distributed at least once every
12 months.
With respect to Bond Fund, Stock Fund, and Small Capitalization Fund,
long-term capital gains distributed to shareholders will be treated as
long-term capital gains regardless of how long shareholders have held
shares.
TOTAL RETURN
The Bond Fund's average annual total returns for the one-year and since
inception (May 11, 1992) periods ended April 30, 1995 were 1.37% and
5.07%, respectively.
The Stock Fund's average annual total returns the one-year and since
inception (May 11, 1992) periods ended April 30, 1995 were 10.17% and
10.80%, respectively.
The Small Capitalization Fund's cumulative total return for the period
from February 27, 1995 (start of performance) to April 30, 1995, was
0.68%.
The Funds' average annual total return is the average compounded rate of
return for a given period that would equate a $1,000 initial investment
to the ending redeemable value of that investment. The ending redeemable
value is computed by multiplying the number of shares owned at the end
of the period by the net asset value per share at the end of the period.
The number of shares owned at the end of the period is based on the
number of shares purchased at the beginning of the period with $1,000,
less any applicable sales load, adjusted over the period by any
additional shares, assuming the monthly or quarterly, as applicable,
reinvestment of all dividends and distributions.
Cumulative total return reflects a fund's total performance over a
specific period of time. This total return assumes and is reduced by the
payment of the maximum sales load. The Small Capitalization Fund's
cumulative total return is representative of only two months of fund
activity since the Fund's effective date.
YIELD
The yields for the seven-day period ended April 30, 1995 for the U.S.
Treasury Money Market Fund and the Prime Money Market Fund were 5.35%
and 5.74%, respectively.
The Bond Fund's yield for the thirty-day period ended April 30, 1995 was
6.47%. The Stock Fund's yield for the thirty-day period ended April 30,
1995 was 1.47%. The Small Capitalization Fund's yield for the thirty-
day period ended April 30, 1995 was 0.70%.
U.S. Treasury Money Market Fund and Prime Money Market Fund calculate
yield daily, based upon the seven days ending on the day of the
calculation, called the "base period." This yield is computed by:
o determining the net change in the value of a hypothetical account
with a balance of one share at the beginning of the base period,
with the net change excluding capital changes but including the
value of any additional shares purchased with dividends earned
from the original one share and all dividends declared on the
original and any purchased shares;
o dividing the net change in the account's value by the value of the
account at the beginning of the base period to determine the base
period return; and
o multiplying the base period return by 365/7.
The yield for Bond Fund, Stock Fund, and Small Capitalization Fund is
determined by dividing the net investment income per share (as defined
by the Securities and Exchange Commission) earned by the Fund over a
thirty-day period by the maximum offering price per share of the Fund on
the last day of the period. This value is then annualized using semi-
annual compounding. This means that the amount of income generated
during the thirty-day period is assumed to be generated each month over
a twelve-month period and is reinvested every six months. The yield does
not necessarily reflect income actually earned by the Fund because of
certain adjustments required by the Securities and Exchange Commission
and, therefore, may not correlate to the dividends or other
distributions paid to shareholders.
To the extent that financial institutions and broker/dealers charge fees
in connection with services provided in conjunction with an investment
in a Fund, the performance will be reduced for those shareholders paying
those fees.
EFFECTIVE YIELD
The effective yields for the seven-day period ended April 30, 1995 for
the U.S. Treasury Money Market Fund and Prime Money Market Fund were
5.49% and 5.90%, respectively.
The effective yield of U.S. Treasury Money Market Fund and Prime Money
Market Fund is computed by compounding the unannualized base period
return by:
o adding 1 to the base period return;
o raising the sum to the 365/7th power; and
o subtracting 1 from the result.
PERFORMANCE COMPARISONS
Each Fund's performance depends upon such variables as:
o portfolio quality;
o average portfolio maturity;
o type of instruments in which the portfolio is invested;
o changes in interest rates on money market instruments in the case
of U.S. Treasury Money Market Fund and Prime Money Market Fund, or
changes in interest rates and market value of portfolio securities
in the case of Bond Fund, Stock Fund and Small Capitalization
Fund;
o changes in each Fund's expenses; and
o the relative amount of each Fund's cash flow.
Investors may use financial publications and/or indices to obtain a more
complete view of the Funds' performance. When comparing performance,
investors should consider all relevant factors such as the composition
of any index used, prevailing market conditions, portfolio compositions
of other funds, and methods used to value portfolio securities and
compute offering price. The financial publications and/or indices which
the Funds use in advertising may include:
U.S. TREASURY MONEY MARKET FUND:
o LIPPER ANALYTICAL SERVICES, INC., ranks funds in various fund
categories by making comparative calculations using total return.
Total return assumes the reinvestment of all income dividends and
capital gains distributions, if any. From time to time, the Fund
will quote its Lipper ranking in advertising and sales literature.
o SALOMON 30-DAY TREASURY BILL INDEX is a weekly quote of the most
representative yields for selected securities, issued by the U.S.
Treasury, maturing in 30 days.
o MONEY, a monthly magazine, regularly ranks money market funds in
various categories based on the latest available seven-day
compound (effective) yield. From time to time, the Fund will quote
its Money ranking in advertising and sales literature.
PRIME MONEY MARKET FUND:
o LIPPER ANALYTICAL SERVICES, INC., ranks funds in various fund
categories by making comparative calculations using total return.
Total return assumes the reinvestment of all capital gains
distributions and income dividends, if any. From time to time, the
Fund will quote its Lipper ranking in advertising and sales
literature.
o BANK RATE MONITOR NATIONAL INDEX, MIAMI BEACH, FLORIDA, is a
financial reporting service which publishes weekly average rates
of 50 leading bank and thrift institution money market deposit
accounts. The rates published in the index are an average of the
personal account rates offered on the Wednesday prior to the date
of publication by ten of the largest banks and thrifts in each of
the five largest Standard Metropolitan Statistical Areas. Account
minimums range upward from $2,500 in each institution and
compounding methods vary. If more than one rate is offered, the
lowest rate is used. Rates are subject to change at any time
specified by the institution.
o SALOMON 30-DAY TREASURY BILL INDEX is a weekly quote of the most
representative yields for selected securities, issued by the U.S.
Treasury, maturing in 30 days.
BOND FUND:
o LEHMAN BROTHERS GOVERNMENT INDEX is an unmanaged index comprised
of all publicly issued, non-convertible domestic debt of the U.S.
government, or any agency thereof, or any quasi-federal
corporation and of corporate debt guaranteed by the U.S.
government. Only notes and bonds with a minimum outstanding
principal of $1 million and a minimum maturity of one year are
included.
o LEHMAN BROTHERS GOVERNMENT/CORPORATE (TOTAL) INDEX is comprised of
approximately 5,000 issues which include non-convertible bonds
publicly issued by the U.S. government or its agencies; corporate
bonds guaranteed by the U.S. government and quasi-federal
corporations; and publicly issued, fixed rate, non-convertible
domestic bonds of companies in industry, public utilities and
finance. The average maturity of these bonds approximates nine
years. Tracked by Shearson Lehman Brothers, Inc., the index
calculates total returns for one month, three month, twelve month
and ten year periods and year-to-date.
o LIPPER ANALYTICAL SERVICES, INC., ranks funds in various fund
categories using total return. Total return assumes the
reinvestment of all capital gains distributions and income
dividends and takes into account any change in net asset value
over a specific period of time. From time to time, the Fund will
quote its Lipper ranking in advertising and sales literature.
o LEHMAN BROTHERS AGGREGATE BOND INDEX is a total return index
measuring both the capital price changes and income provided by
the underlying universe of securities, weighted by market value
outstanding. The Aggregate Bond Index is comprised of the Shearson
Lehman Government Bond Index, Corporate Bond Index, Mortgage-
Backed Securities Index and the Yankee Bond Index. These indices
include: U.S. Treasury obligations, including bonds and notes;
U.S. agency obligations, including those of the Federal Farm
Credit Bank, Federal Land Bank and the Bank for Co-Operatives;
foreign obligations, U.S. investmentgrade corporate debt and
mortgage-backed obligations. All corporate debt included in the
Aggregate Bond Index has a minimum S&P rating of BBB, a minimum
Moody's rating of Baa, or a minimum Fitch rating of BBB.
o MERRILL LYNCH CORPORATE AND GOVERNMENT INDEX includes issues which
must be in the form of publicly placed, nonconvertible, coupon-
bearing domestic debt and must carry a term of maturity of at
least one year. Par amounts outstanding must be no less than $10
million at the start and at the close of the performance
measurement period. Corporate instruments must be rated by S&P or
by Moody's as investment grade issues (i.e., BBB/Baa or better).
o MERRILL LYNCH DOMESTIC MASTER INDEX includes issues which must be
in the form of publicly placed, nonconvertible, coupon-bearing
domestic debt and must carry a term to maturity of at least one
year. Par amounts outstanding must be no less than $10 million at
the start and at the close of the performance measurement period.
The Domestic Master Index is a broader index than the Merrill Lynch
Corporate and Government Index and includes, for example, mortgage
related securities. The mortgage market is divided by agency, type of
mortgage and coupon and the amount outstanding in each
agency/type/coupon subdivision must be no less than $200 million at the
start and at the close of the performance measurement period. Corporate
instruments must be rated by S&P or by Moody's as investment grade
issues (i.e., BBB/Baa or better).
STOCK FUND:
o LIPPER ANALYTICAL SERVICES, INC., ranks funds in various fund
categories by making comparative calculations using total return.
Total return assumes the reinvestment of all capital gains
distributions and income dividends and takes into account any
change in net asset value over a specific period of time. From
time to time, the Fund will quote its Lipper ranking in
advertising and sales literature
o DOW JONES INDUSTRIAL AVERAGE ("DJIA") represents share prices of
selected blue-chip industrial corporations. The DJIA indicates
daily changes in the average price of stock in these corporations.
It also reports total sales for this group. Because it represents
the top corporations of America, the DJIA index is a leading
economic indicator for the stock market as a whole.
o STANDARD & POOR'S DAILY STOCK PRICE INDEX OF 500 COMMON STOCKS, a
composite index of common stocks in industry, transportation, and
financial and public utility companies. The Standard & Poor's
index assumes reinvestment of all dividends paid by stocks listed
on the index. Taxes due on any of these distributions are not
included, nor are brokerage or other fees calculated in the
Standard & Poor's figures.
SMALL CAPITALIZATION FUND:
o LIPPER ANALYTICAL SERVICES, INC. ranks funds in various fund
categories by making comparative calculations using total return.
Total return assumes the reinvestment of all capital gains
distributions and income dividends and takes into account any
change in offering price over a specific period of time. From time
to time, the Fund will quote its Lipper ranking in the "index
funds" category in advertising and sales literature.
o MORNINGSTAR, INC., an independent rating service, is the publisher
of the bi-weekly Mutual Fund Values. Mutual Fund Values rates more
than 1,000 NASDAQlisted mutual funds of all types, according to
their risk-adjusted returns. The maximum rating is five stars, and
ratings are effective for two weeks.
o RUSSELL 2000 INDEX--is a broadly diversified index consisting of
approximately 2,000 small capitalization common stocks that can be
used to compare to the total returns of funds whose portfolios are
invested primarily in small capitalization stocks.
Advertisements and other sales literature for the Funds may quote total
returns which are calculated on non-standardized base periods. These
total returns also represent the historic change in the value of an
investment in the Funds based on monthly reinvestment of dividends over
a specified period of time. Advertisements may quote performance
information which does not reflect the effect of the sales load of the
Bond Fund or Stock Fund.
FINANCIAL STATEMENTS
The financial statements for the fiscal year ended April 30, 1995, are
incorporated herein by reference to the Trust's Annual Report dated
April 30, 1995 (File Nos. 33-40428 and 811-6309). A copy of the Annual
Report may be obtained without charge by contacting the Trust at the
address located on the back cover of the prospectus.
APPENDIX
STANDARD & POOR'S RATINGS GROUP CORPORATE BOND RATING DEFINITIONS
AAA--Debt rated AAA has the highest rating assigned by Standard &
Poor's. Capacity to pay interest and repay principal is extremely
strong. AA--Debt rated AA has a very strong capacity to pay interest and
repay principal and differs from the higher rated issues only in small
degree. A--Debt rated A has a strong capacity to pay interest and repay
principal although it is somewhat more susceptible to the adverse
effects of changes in circumstances and economic conditions than debt in
higher rated categories. BBB--Debt rated BBB is regarded as having an
adequate capacity to pay interest and repay principal. Whereas it
normally exhibits adequate protection parameters, adverse economic
conditions or changing circumstances are more likely to lead to a
weakened capacity to pay interest and repay principal for debt in this
category than in higher rated categories.
NR--NR indicates that no public rating has been requested, that there is
insufficient information on which to base a rating, or that Standard &
Poor's does not rate a particular type of obligation as a matter of
policy. Standard and Poor's may apply a plus (+) or minus (-) to the
above rating classifications to show relative standing within the
classifications.
MOODY'S INVESTORS SERVICE, INC. CORPORATE BOND RATING DEFINITIONS
AAA--Bonds which are rated Aaa are judged to be of the best quality.
They carry the smallest degree of investment risk and are generally
referred to as "gilt edged." Interest payments are protected by a large
or by an exceptionally stable margin and principal is secure. While the
various protective elements are likely to change, such changes as can be
visualized are most unlikely to impair the fundamentally strong position
of such issues.
AA--Bonds which are rated Aa are judged to be of high quality by all
standards. Together with the Aaa group they comprise what are generally
known as highgrade bonds. They are rated lower than the best bonds
because margins of protection may not be as large as in Aaa securities
or fluctuation of protective elements may be of greater amplitude or
there may be other elements present which make the long-term risks
appear somewhat larger than in Aaa securities.
A--Bonds which are rated A possess many favorable investment attributes
and are to be considered as upper medium grade obligations. Factors
giving security to principal and interest are considered adequate but
elements may be present which suggest a susceptibility to impairment
sometime in the future. Baa--Bonds which are rated Baa are considered as
medium-grade obligations, i.e., they are neither highly protected nor
poorly secured. Interest payments and principal security appear adequate
for the present but certain protective elements may be lacking or may be
characteristically unreliable over any great length of time. Such bonds
lack outstanding investment characteristics and in fact have speculative
characteristics as well.
NR--Not rated by Moody's.
Moody's applies numerical modifiers, 1, 2, and 3 in each generic rating
classification from Aa through B in its corporate bond rating system.
The modifier 1 indicates that the security ranks in the higher end of
its generic rating category; the modifier 2 indicates a mid-range
ranking; and the modifier 3 indicates that the issue ranks in the lower
end of its generic rating category.
FITCH INVESTORS SERVICE, INC. CORPORATE BOND RATING DEFINITIONS
AAA--Bonds considered to be investment grade and of the highest credit
quality. The obligor has an exceptionally strong ability to pay interest
and repay principal, which is unlikely to be affected by reasonably
foreseeable events. AA--Bonds considered to be investment grade and of
very high credit quality. The obligor's ability to pay interest and
repay principal is very strong, although not quite as strong as bonds
rated "AAA." Because bonds rated in the "AAA" and "AA" categories are
not significantly vulnerable to foreseeable future developments, short-
term debt of these issuers is generally rated "A1+."
A--Bonds considered to be investment grade and of high credit quality.
The obligor's ability to pay interest and repay principal is considered
to be strong, but may be more vulnerable to adverse changes in economic
conditions and circumstances than bonds with higher ratings.
BBB--Bonds considered to be investment grade and of satisfactory credit
quality. The obligor's ability to pay interest and repay principal is
considered to be adequate. Adverse changes in economic conditions and
circumstances, however, are more likely to have adverse impact on these
bonds, and therefore, impair timely payment. The likelihood that the
ratings of these bonds will fall below investment grade is higher than
for bonds with higher ratings.
NR--NR indicates that Fitch does not rate the specific issue.
Plus (+) or Minus (-): Plus and minus signs are used with a rating
symbol to indicate the relative position of a credit within the rating
category. Plus and minus signs, however, are not used in the "AAA"
category.
STANDARD & POOR'S RATINGS GROUP COMMERCIAL PAPER RATING DEFINITIONS
A-1--This highest category indicates that the degree of safety regarding
timely payment is strong. Those issues determined to possess extremely
strong safety characteristics are denoted with a plus (+) designation. A-
2--Capacity for timely payment on issues with this designation is
satisfactory. However, the relative degree of safety is not as high as
for issues designated "A-1."
MOODY'S INVESTORS SERVICE, INC. COMMERCIAL PAPER RATING DEFINITIONS
PRIME-1--Issuers rated Prime-1 (or related supporting institutions) have
a superior capacity for repayment of short-term promissory obligations.
Prime-1 repayment capacity will normally be evidenced by the following
characteristics:
o Leading market positions in well-established industries.
o High rates of return on funds employed.
o Conservative capitalization structure with moderate reliance on
debt and ample asset protection.
o Broad margins in earnings coverage of fixed financial charges and
high internal cash generation.
o Well-established access to a range of financial markets and
assured sources of alternate liquidity.
PRIME-2--Issuers rated Prime-2 (or related supporting institutions) have
a strong capacity for repayment of short-term promissory obligations.
This will normally be evidenced by many of the characteristics cited
above, but to a lesser degree. Earnings trends and coverage ratios,
while sound, will be more subject to variation. Capitalization
characteristics, while still appropriate, may be more affected by
external conditions. Ample alternate liquidity is maintained.
FITCH INVESTORS SERVICE, INC. COMMERCIAL PAPER RATING DEFINITIONS
Plus or minus signs are used with a rating symbol to indicate the
relative position of the credit within the rating category:
F-1+--Exceptionally Strong Credit Quality. Issues assigned this rating
are regarded as having the strongest degree of assurance for timely
payment.
F-1--Very Strong Credit Quality. Issues assigned this rating reflect an
assurance of timely payment only slightly less in degree than issues
rated F1+.
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