RIMCO
MONUMENT
FUNDS
COMBINED SEMI-ANNUAL
REPORT TO SHAREHOLDERS
OCTOBER 31, 1994
RIMCO Monument
Prime Money Market Fund
RIMCO Monument
U.S. Treasury Money Market Fund
RIMCO Monument Bond Fund
RIMCO Monument Stock Fund
RIGGS INVESTMENT MANAGEMENT CORP. (RIMCO)
- -----------------------------------------
Investment Adviser
FEDERATED SECURITIES CORP.
- -----------------------------------------
Distributor
766730303
766730105
766730402
766730204
1111202A (12/94)
PRESIDENT'S MESSAGE
- --------------------------------------------------------------------------------
Dear Investor:
I am pleased to present the Semi-Annual Report for the RIMCO Monument Funds for
the six-month period ended October 31, 1994. It contains complete financial
information--including the Investment Reviews and Portfolios of Investments--for
RIMCO Monument Prime Money Market Fund, RIMCO Monument U.S. Treasury Money
Market Fund, RIMCO Monument Bond Fund, and RIMCO Monument Stock Fund.
At the end of the Report period, net assets in RIMCO Monument Prime Money Market
Fund totaled $339.6 million, and assets in RIMCO Monument U.S. Treasury Money
Market Fund reached $91.3 million.
RIMCO Monument Bond Fund grew to $45 million, and paid dividends of $0.27 per
share. Its net asset value declined by $0.32 per share due to the series of
increases in interest rates, which invariably caused all bond prices to
decrease.
RIMCO Monument Stock Fund's net assets rose to $59.8 million as its net asset
value reached $11.99 on the last day of the period, an increase of $0.10 over
its net asset value on the first day of the period. The Stock Fund paid $0.09
per share in dividends and $0.49 per share in capital gains.
Thank you for your confidence in the RIMCO Monument Funds. As always, we welcome
your questions, comments, or suggestions.
Sincerely,
Edward C. Gonzales
President
December 15, 1994
INVESTMENT REVIEW
- --------------------------------------------------------------------------------
RIMCO MONUMENT BOND FUND
The bear market in bonds continued over the last six months. The yield on the
thirty year Treasury bond rose from approximately 7.3% last spring to just shy
of 8% at the end of the Report period. Treasuries with maturities of 2 years or
less rose a full 1% or more in yield. A stronger than expected economy several
years into the current business cycle has brought unemployment and capacity
utilization rates to levels which, in the past, have marked the onset of
inflationary pressures. This has caused concern that inflation will accelerate
and has led fixed income investors to require a higher "risk premium" (i.e., a
higher yield over the current inflation rate) than would be the case in a more
stable interest rate environment. In addition, higher inflation-adjusted yields
overseas and a growing flow of funds into international equities are competing
with the domestic fixed-income market for investors' money.
In light of these considerations, we shifted to a more defensive strategy by
shortening the duration of the RIMCO Monument Bond Fund. Going forward, we will
continue to maintain a portfolio duration which is shorter than average. Near
term, we continue to anticipate a flattening of the yield curve, (where short
term yields rise faster than long term yields) and additional increases in the
Federal funds rate and discount rate.
RIMCO MONUMENT MONEY MARKET FUNDS
Since the beginning of 1994, when the Federal Reserve Board (the "Fed") shifted
from a neutral stance on monetary policy to a restrictive position, yields on
short-term instruments have increased at a brisk pace. Yields have risen 200
basis points on three-month Treasury bills, 230 basis points on six-month
Treasury bills, and 250 basis points on one-year Treasury bills. The yield on
the one-year Treasury bill is currently over 6%, a very respectable yield for an
instrument that is backed by the full faith and credit of the U.S. government.
As described in prior reviews, the RIMCO Monument Prime Money Market Fund (the
"Prime Fund") was well positioned to handle the dramatic shift in monetary
policy and thus the steepening of the yield curve. The Prime Fund is invested in
a variety of fixed securities, including corporate and agency pieces, as well as
being hedged with agency and corporate floating rate note securities. As yields
on the three-month Treasury bill or on the three-month LIBOR index (London
Inter-Bank Offer Rate) increased, the yield on the Prime Fund moved in sync. The
strategy for the RIMCO Monument U.S. Treasury Money Market Fund has been to
maintain a shorter average maturity than during 1993.
Looking forward, we expect the economy to remain poised for continued economic
growth, perhaps as high as 3% to 3-1/2% for the remainder of 1994 and into 1995,
well above the Fed's target 2.5% Gross Domestic Product growth rate. Therefore,
we anticipate the Fed will maintain its pervasive pessimism on inflation and
continue with the restrictive monetary policy that was implemented earlier in
the year.
- --------------------------------------------------------------------------------
RIMCO MONUMENT STOCK FUND
The equity market performed admirably over the six months of the Report period
in spite of the fact that interest rates rose substantially. On a price basis,
the broad market, as measured by the Standard & Poor's 500 stock index* was up
4.5% for the six month period ended October 31, 1994. The backdrop for the
financial markets since the economic recovery began, consisting of modest growth
and low inflation, has changed. Modest growth has given way to strong growth and
while we have yet to see accelerating inflation show up in the government
statistics, anecdotal evidence is widespread. We believe these fundamentals will
make for a difficult equity market in the months ahead. The gains in equities
thus far have been driven most exclusively by sharply higher corporate profits.
As those of you who have invested with us for some time are aware, our
management strategy for the RIMCO Monument Stock Fund is to emphasize companies
with superior and improving earning growth potential for the next twelve months,
which also have lower than average price/earnings multiples. This strategy, we
believe, allows us to capitalize on subtle shifts in the markets without
excessive risk taking. In that regard, this interim period was meaningful in
terms of industry emphasis. Late in the second calendar quarter, our stock
ranking model began to indicate a slowdown in the rate of expected earnings
growth for many economically sensitive companies. This prompted a shift in
emphasis toward those companies with better value and growth characteristics.
Specifically, we reduced investment in the automotive and transport sectors.
Conversely, we increased our emphasis in technology, retailing, and electric
utilities.
Despite the modest shifts in sector emphasis, stock selection continues to be of
greatest importance. During the past six months we eliminated positions in,
among others, Chrysler, General Motors, and Goodyear Tire in the automotive
sector, and Burlington Northern and AMR Corp. in the transportation sector. We
believe these stocks will have slowing earnings growth in 1995. Our purchases,
however, are not thematically linked as they were in the prior several quarters.
With a greater focus on earnings improvement, market winners have not been
concentrated in any one area. During the period, we added Compaq Computer and
Gap Stores. We believe both are excellent examples of stocks selling at low
price/earnings multiples with improved growth anticipated for 1995. Largely on a
value basis, we increased our exposure to the electric utility sector by adding
FPL Group, Illinova, and IPALCO.
During the period, we owned several important performers: Scott Paper, up 35% on
a dramatic restructuring and sharp acceleration in earnings growth; Oracle
Systems, up 35% on new product introductions and improved earnings power; and,
Amgen Inc, up 27%. In each of these cases, investors focused on shares that were
selling at depressed valuations despite solid earnings growth. Our worst
performers were Wendy's International, down 22%, and Bell South, down 14%. These
companies continue to be attractive based on our research and have been
retained.
* This index is unmanaged.
RIMCO MONUMENT PRIME MONEY MARKET FUND
PORTFOLIO OF INVESTMENTS
OCTOBER 31, 1994
(UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
<C> <S> <C>
- ------------- ---------------------------------------------------------------------------------- --------------
SHORT-TERM U.S. GOVERNMENT AND AGENCY OBLIGATIONS--22.9%
- -------------------------------------------------------------------------------------------------
*FEDERAL HOME LOAN BANKS--2.3%
----------------------------------------------------------------------------------
$ 8,000,000 4.82%-5.39%, 11/14/94-1/20/95 $ 7,973,487
---------------------------------------------------------------------------------- --------------
*FEDERAL NATIONAL MORTGAGE ASSOCIATION--0.6%
----------------------------------------------------------------------------------
2,000,000 5.35%, 1/16/95 2,001,254
---------------------------------------------------------------------------------- --------------
*STUDENT LOAN MARKETING ASSOCIATION--19.9%
----------------------------------------------------------------------------------
67,395,000 5.38%-5.81%, 11/1/94 67,590,411
---------------------------------------------------------------------------------- --------------
U.S. TREASURY BILLS--0.1%
----------------------------------------------------------------------------------
161,000 12/15/94 160,267
---------------------------------------------------------------------------------- --------------
TOTAL SHORT-TERM U.S. GOVERNMENT AND AGENCY OBLIGATIONS 77,725,419
---------------------------------------------------------------------------------- --------------
SHORT-TERM MUNICIPAL SECURITIES--3.8%
- -------------------------------------------------------------------------------------------------
5,000,000 +Orange County, CA, Monthly VRDN 4,999,098
----------------------------------------------------------------------------------
5,000,000 +Orange County, CA, Flood Control District, Monthly VRDN,
Taxable Note 4,998,599
----------------------------------------------------------------------------------
3,000,000 Summit County, OH, 4.30% Revenue Bonds, TANs, 12/30/94 3,002,115
---------------------------------------------------------------------------------- --------------
TOTAL SHORT-TERM MUNICIPAL SECURITIES 12,999,812
---------------------------------------------------------------------------------- --------------
*COMMERCIAL PAPER--6.9%
- -------------------------------------------------------------------------------------------------
FINANCE--2.7%
----------------------------------------------------------------------------------
4,000,000 ITT Financial Co., 4.85%, 11/10/94 4,000,000
----------------------------------------------------------------------------------
5,000,000 TransAmerica Corp., 5.36%, 11/1/94 4,999,646
---------------------------------------------------------------------------------- --------------
Total 8,999,646
---------------------------------------------------------------------------------- --------------
FINANCE--AUTOMOTIVE--2.9%
----------------------------------------------------------------------------------
10,000,000 American Honda, 5.40%, 11/1/94 9,999,804
---------------------------------------------------------------------------------- --------------
FINANCE--RETAIL--0.7%
----------------------------------------------------------------------------------
2,500,000 Sears, Roebuck Acceptance Corp., 4.90%, 11/21/94 2,500,000
---------------------------------------------------------------------------------- --------------
</TABLE>
RIMCO MONUMENT PRIME MONEY MARKET FUND
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
<C> <S> <C>
- ------------- ---------------------------------------------------------------------------------- --------------
*COMMERCIAL PAPER--CONTINUED
- -------------------------------------------------------------------------------------------------
PRODUCER MANUFACTURING--0.6%
----------------------------------------------------------------------------------
$ 2,000,000 General Electric Co., 4.72%, 11/21/94 $ 1,999,788
---------------------------------------------------------------------------------- --------------
TOTAL COMMERCIAL PAPER 23,499,238
---------------------------------------------------------------------------------- --------------
CORPORATE BONDS--63.7%
- -------------------------------------------------------------------------------------------------
BANKING--25.3%
----------------------------------------------------------------------------------
8,000,000 BankAmerica Corp., 5.06%-5.36%, 12/15/94-12/21/94 8,004,896
----------------------------------------------------------------------------------
5,000,000 Bank of Boston Corp., 5.655%, 12/15/94 5,000,322
----------------------------------------------------------------------------------
10,000,000 Boatmens Bank, Southern Missouri, 5.055%, 11/1/94 10,000,000
----------------------------------------------------------------------------------
8,500,000 Citicorp, 5.05%-7.40%, 12/7/94-2/15/95 8,542,221
----------------------------------------------------------------------------------
9,000,000 FCC National Bank, 5.80%-5.81%, 11/1/94 9,001,786
----------------------------------------------------------------------------------
5,000,000 First National Bank of Boston, 5.655%, 1/7/95 5,000,909
----------------------------------------------------------------------------------
6,000,000 Fleet Financial Group, Inc., 5.625%-11.75%, 11/15/94-7/1/95 6,023,732
----------------------------------------------------------------------------------
7,600,000 Korea Development Bank, 8.67%-8.68%, 3/15/95 7,683,943
----------------------------------------------------------------------------------
5,000,000 PNC Bank of Delaware, 5.31%, 11/1/94 4,999,539
----------------------------------------------------------------------------------
5,000,000 PNC Bank of Kentucky, 5.31%, 11/1/94 4,998,347
----------------------------------------------------------------------------------
11,690,000 Security Pacific Corp., 6.71%-6.875%, 12/23/94-2/15/95 11,753,798
----------------------------------------------------------------------------------
5,000,000 Southtrust Bank Alabama, 5.125%, 12/21/94 4,999,462
---------------------------------------------------------------------------------- --------------
Total 86,008,955
---------------------------------------------------------------------------------- --------------
FINANCE--15.9%
----------------------------------------------------------------------------------
10,000,000 American Express Centurian Bank, 5.38%, 11/1/94 10,000,000
----------------------------------------------------------------------------------
1,500,000 American Express Credit Corp., 8.75%, 2/1/95 1,515,371
----------------------------------------------------------------------------------
650,000 American General Finance Corp., 8.10%-9.75%, 6/30/95-8/15/95 664,676
----------------------------------------------------------------------------------
7,690,000 Associates Corp. of North America, 6.375%-9.00%, 11/15/94-8/1/95 7,766,586
----------------------------------------------------------------------------------
10,000,000 Avco Financial Services, Inc., 5.36%, 11/1/94 10,000,000
----------------------------------------------------------------------------------
4,000,000 Citibank, New York, 5.063%, 11/1/94 3,999,717
----------------------------------------------------------------------------------
2,000,000 Heller Financial Corp., 5.988%, 12/22/94 2,002,103
----------------------------------------------------------------------------------
5,170,000 ITT Financial Corp., 5.00%-8.55%, 7/3/95-10/15/95 5,206,444
----------------------------------------------------------------------------------
$ 9,660,000 Philip Morris Cos., Inc., 5.95%-9.40%, 11/15/94-6/26/95 $ 9,756,750
----------------------------------------------------------------------------------
</TABLE>
RIMCO MONUMENT PRIME MONEY MARKET FUND
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
<C> <S> <C>
- ------------- ---------------------------------------------------------------------------------- --------------
CORPORATE BONDS--CONTINUED
- -------------------------------------------------------------------------------------------------
FINANCE--CONTINUED
----------------------------------------------------------------------------------
3,210,000 TransAmerica Finance Corp., 5.40%-8.30%, 5/1/95-9/1/95 3,216,141
---------------------------------------------------------------------------------- --------------
Total 54,127,788
---------------------------------------------------------------------------------- --------------
FINANCE--AUTOMOTIVE--7.5%
----------------------------------------------------------------------------------
10,000,000 Ford Motor Credit Corp., 5.40%-9.35%, 12/19/94-9/26/95 10,043,783
----------------------------------------------------------------------------------
13,950,000 General Motors Acceptance Corp., 5.20%-9.25%, 12/8/94-8/1/95 14,055,491
----------------------------------------------------------------------------------
1,500,000 GMAC European, 6.10%, 1/25/95 1,506,260
---------------------------------------------------------------------------------- --------------
Total 25,605,534
---------------------------------------------------------------------------------- --------------
FINANCE--COMMERCIAL--0.7%
----------------------------------------------------------------------------------
2,500,000 General Electric Capital Corp., 8.52%-8.60%, 11/15/94-12/15/94 2,510,775
---------------------------------------------------------------------------------- --------------
FINANCE--EQUIPMENT--2.2%
----------------------------------------------------------------------------------
7,595,000 International Lease Finance Corp., 4.25%-6.00%, 1/15/95-10/23/95 7,511,664
---------------------------------------------------------------------------------- --------------
FINANCE--RECEIVABLES--6.3%
----------------------------------------------------------------------------------
14,740,000 IBM Credit Corp., 4.63%-6.30%, 11/7/94-8/1/95 14,754,596
----------------------------------------------------------------------------------
6,500,000 John Deere Capital Corp., 5.00%-11.625%, 1/15/95-3/20/95 6,551,750
---------------------------------------------------------------------------------- --------------
Total 21,306,346
---------------------------------------------------------------------------------- --------------
FINANCE--RETAIL--0.6%
----------------------------------------------------------------------------------
1,000,000 Commercial Credit Group, Inc., 6.25%, 1/15/95 1,001,420
----------------------------------------------------------------------------------
1,000,000 Sears, Roebuck & Co., 7.04%, 4/3/95 1,004,670
---------------------------------------------------------------------------------- --------------
Total 2,006,090
---------------------------------------------------------------------------------- --------------
FOOD & BEVERAGE--2.7%
----------------------------------------------------------------------------------
9,000,000 Pepsico, Inc., 5.335%, 11/1/94 9,000,373
---------------------------------------------------------------------------------- --------------
SERVICES--0.7%
----------------------------------------------------------------------------------
2,200,000 PHH Corp., 5.36%, 11/1/94 2,200,000
---------------------------------------------------------------------------------- --------------
TELECOMMUNICATIONS--1.6%
----------------------------------------------------------------------------------
1,000,000 AT&T Corp., 4.813%, 11/4/94 999,874
----------------------------------------------------------------------------------
</TABLE>
RIMCO MONUMENT PRIME MONEY MARKET FUND
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
<C> <S> <C>
- ------------- ---------------------------------------------------------------------------------- --------------
CORPORATE BONDS--CONTINUED
- -------------------------------------------------------------------------------------------------
TELECOMMUNICATIONS--CONTINUED
----------------------------------------------------------------------------------
$ 4,500,000 Xerox Credit Corp., 8.75%-9.50%, 11/1/94-2/14/95 $ 4,546,379
---------------------------------------------------------------------------------- --------------
Total 5,546,253
---------------------------------------------------------------------------------- --------------
UTILITIES--0.2%
----------------------------------------------------------------------------------
500,000 Carolina Power & Light Co., 9.14%, 4/1/95 507,325
---------------------------------------------------------------------------------- --------------
TOTAL CORPORATE BONDS 216,337,103
---------------------------------------------------------------------------------- --------------
**REPURCHASE AGREEMENTS--2.2%
- -------------------------------------------------------------------------------------------------
3,721,000 Citicorp Security Markets, Inc., 4.75%, dated 10/31/94, due 11/1/94 3,721,000
----------------------------------------------------------------------------------
3,720,000 Donaldson, Lufkin & Jenrette Securities Corp., 4.75%, dated 10/31/94, due 11/1/94 3,720,000
---------------------------------------------------------------------------------- --------------
TOTAL REPURCHASE AGREEMENTS 7,441,000
---------------------------------------------------------------------------------- --------------
TOTAL INVESTMENTS, AT AMORTIZED COST AND VALUE $ 337,996,572+
---------------------------------------------------------------------------------- --------------
</TABLE>
* Current rate and next demand date shown.
** The repurchase agreements are fully collateralized by U.S. government and/or
agency obligations based on market prices at the date of the portfolio.
+ Also represents cost for federal tax purposes.
+ On December 6, 1994, Orange County, California filed for protection under
Chapter 9 with the U.S. Bankruptcy Court in Santa Ana, California. On
December 9, 1994, Riggs National Corporation purchased the security from
the Fund's portfolio of investments at its amortized cost, resulting in no
loss to the Fund or its shareholders.
Note: The categories of investments are shown as a percentage of net assets
($339,625,881) at October 31, 1994.
The following abbreviations are used in this portfolio.
TANs--Tax Anticipation Notes
VRDN--Variable Rate Demand Note
(See Notes which are an integral part of the Financial Statements)
RIMCO MONUMENT PRIME MONEY MARKET FUND
STATEMENT OF ASSETS AND LIABILITIES
OCTOBER 31, 1994
(UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<S> <C> <C>
ASSETS:
- -------------------------------------------------------------------------------------------------
Investments in securities, at amortized cost and value (tax cost, $337,996,572) $ 337,996,572
- -------------------------------------------------------------------------------------------------
Cash 140
- -------------------------------------------------------------------------------------------------
Interest receivable 3,944,062
- -------------------------------------------------------------------------------------------------
Receivable for Fund shares sold 27,059
- -------------------------------------------------------------------------------------------------
Deferred expenses 14,074
- ------------------------------------------------------------------------------------------------- --------------
Total assets 341,981,907
- -------------------------------------------------------------------------------------------------
LIABILITIES:
- -------------------------------------------------------------------------------------------------
Dividends payable $ 1,246,569
- -----------------------------------------------------------------------------------
Payable for investments purchased 1,012,960
- -----------------------------------------------------------------------------------
Accrued expenses 96,497
- ----------------------------------------------------------------------------------- ------------
Total liabilities 2,356,026
- ------------------------------------------------------------------------------------------------- --------------
NET ASSETS for 339,872,682 shares of beneficial interest outstanding $ 339,625,881
- ------------------------------------------------------------------------------------------------- --------------
NET ASSETS CONSIST OF:
- -------------------------------------------------------------------------------------------------
Paid-in capital $ 339,872,682
- -------------------------------------------------------------------------------------------------
Accumulated net realized gain (loss) on investments (347,588)
- -------------------------------------------------------------------------------------------------
Undistributed net investment income 100,787
- ------------------------------------------------------------------------------------------------- --------------
Total $ 339,625,881
- ------------------------------------------------------------------------------------------------- --------------
NET ASSET VALUE, Offering Price, and Redemption Proceeds Per Share:
($339,625,881 / 339,872,682 shares of beneficial interest outstanding) $1.00
- ------------------------------------------------------------------------------------------------- --------------
(See Notes which are an integral part of the Financial Statements)
</TABLE>
RIMCO MONUMENT PRIME MONEY MARKET FUND
]STATEMENT OF OPERATIONS
SIX MONTHS ENDED OCTOBER 31, 1994
(UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<S> <C> <C>
INVESTMENT INCOME:
- ----------------------------------------------------------------------------------------------------
Interest income $ 8,546,443
- ----------------------------------------------------------------------------------------------------
EXPENSES:
- ----------------------------------------------------------------------------------------------------
Investment advisory fee $ 933,847
- --------------------------------------------------------------------------------------
Trustees' fees 3,727
- --------------------------------------------------------------------------------------
Administrative personnel and services fees 248,024
- --------------------------------------------------------------------------------------
Transfer and dividend disbursing agent fees and expenses 24,145
- --------------------------------------------------------------------------------------
Fund share registration costs 31,533
- --------------------------------------------------------------------------------------
Auditing fees 7,933
- --------------------------------------------------------------------------------------
Legal fees 3,906
- --------------------------------------------------------------------------------------
Printing and postage 5,772
- --------------------------------------------------------------------------------------
Portfolio accounting fees 45,699
- --------------------------------------------------------------------------------------
Insurance premiums 5,646
- --------------------------------------------------------------------------------------
Miscellaneous 3,594
- -------------------------------------------------------------------------------------- ------------
Total expenses 1,313,826
- --------------------------------------------------------------------------------------
Deduct--Waiver of investment advisory fee 455,957
- -------------------------------------------------------------------------------------- ------------
Net expenses 857,869
- ---------------------------------------------------------------------------------------------------- ------------
Net investment income 7,688,574
- ---------------------------------------------------------------------------------------------------- ------------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:
- ----------------------------------------------------------------------------------------------------
Net realized gain (loss) on investment transactions (identified cost basis) 53,505
- ---------------------------------------------------------------------------------------------------- ------------
Change in net assets from operations $ 7,742,079
- ---------------------------------------------------------------------------------------------------- ------------
</TABLE>
(See Notes which are an integral part of the Financial Statements)
RIMCO MONUMENT PRIME MONEY MARKET FUND
STATEMENT OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
YEAR ENDED APRIL 30,
1995* 1994
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
- -----------------------------------------------------------------------------
OPERATIONS--
- -----------------------------------------------------------------------------
Net investment income $ 7,688,574 $ 10,582,964
- -----------------------------------------------------------------------------
Net realized gain (loss) on investment transactions ($53,505 net gain and
$890,037 net loss, respectively, as computed for federal tax purposes) 53,505 88,514
- ----------------------------------------------------------------------------- --------------- -----------------
Change in net assets from operations 7,742,079 10,671,478
- ----------------------------------------------------------------------------- --------------- -----------------
DISTRIBUTIONS TO SHAREHOLDERS--
- -----------------------------------------------------------------------------
Dividends to shareholders from net investment income (7,587,787) (10,582,964)
- ----------------------------------------------------------------------------- --------------- -----------------
FUND SHARE (PRINCIPAL) TRANSACTIONS--
- -----------------------------------------------------------------------------
Proceeds from sale of shares 453,889,115 1,060,003,920
- -----------------------------------------------------------------------------
Net asset value of shares issued to shareholders in
payment of dividends declared 730,179 814,399
- -----------------------------------------------------------------------------
Cost of shares redeemed (449,912,744) (1,003,408,484)
- ----------------------------------------------------------------------------- --------------- -----------------
Change in net assets from Fund share transactions 4,706,550 57,409,835
- ----------------------------------------------------------------------------- --------------- -----------------
Change in net assets 4,860,842 57,498,349
- -----------------------------------------------------------------------------
NET ASSETS:
- -----------------------------------------------------------------------------
Beginning of period 334,765,039 277,266,690
- ----------------------------------------------------------------------------- --------------- -----------------
End of period (including undistributed net investment income
of $100,787 and $0, respectively) $ 339,625,881 $ 334,765,039
- ----------------------------------------------------------------------------- --------------- -----------------
</TABLE>
*Six months ended October 31, 1994 (unaudited).
(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**
<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 0.02 0.03 0.04 0.03
- ------------------------------------------------------------- --------- --------- --------- -----------
LESS DISTRIBUTIONS
- -------------------------------------------------------------
Dividends to shareholders from net investment
income (0.02) (0.03) (0.04) (0.03)
- ------------------------------------------------------------- --------- --------- --------- -----------
NET ASSET VALUE, END OF PERIOD $ 1.00 $ 1.00 $ 1.00 $ 1.00
- ------------------------------------------------------------- --------- --------- --------- -----------
TOTAL RETURN*** 2.08% 3.08% 3.55% 2.90%
- -------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS
- -------------------------------------------------------------
Expenses 0.46%(b) 0.43% 0.41% 0.27%(b)
- -------------------------------------------------------------
Net investment income 4.12%(b) 3.02% 3.46% 4.56%(b)
- -------------------------------------------------------------
Expense waiver/reimbursement (a) 0.25%(b) 0.28% 0.31% 0.47%(b)
- -------------------------------------------------------------
SUPPLEMENTAL DATA
- -------------------------------------------------------------
Net assets, end of period (000 omitted) $339,626 $334,765 $277,267 $111,329
- -------------------------------------------------------------
</TABLE>
* Six months ended October 31, 1994 (unaudited).
** Reflects operations for the period from September 17, 1991 (date of initial
public investment) to April 30, 1992.
*** Based on net asset value, which does not reflect the sales load or
contingent deferred sales charge, if applicable.
(a) This voluntary expense decrease is reflected in both the expense and net
investment income ratios shown above.
(b) Computed on an annualized basis.
(See Notes which are an integral part of the Financial Statements)
RIMCO MONUMENT U.S. TREASURY MONEY MARKET FUND
PORTFOLIO OF INVESTMENTS
OCTOBER 31, 1994
(UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
<C> <S> <C>
- ------------- ----------------------------------------------------------------------------------- -------------
UNITED STATES TREASURY OBLIGATIONS--59.6%
- --------------------------------------------------------------------------------------------------
U.S. TREASURY BILLS--48.6%
-----------------------------------------------------------------------------------
$ 45,000,000 11/17/94-4/27/95 $ 44,434,360
-----------------------------------------------------------------------------------
U.S. TREASURY NOTE--11.0%
-----------------------------------------------------------------------------------
10,000,000 4.625%, 12/31/94 9,996,916
----------------------------------------------------------------------------------- -------------
TOTAL UNITED STATES TREASURY OBLIGATIONS 54,431,276
----------------------------------------------------------------------------------- -------------
*REPURCHASE AGREEMENTS--45.7%
- --------------------------------------------------------------------------------------------------
20,867,000 Citicorp Securities Markets, Inc., 4.75%, dated 10/31/94, due 11/1/94 20,867,000
-----------------------------------------------------------------------------------
20,868,000 Donaldson, Lufkin & Jenrette Securities Corp., 4.75%, dated 10/31/94, due 11/1/94 20,868,000
----------------------------------------------------------------------------------- -------------
TOTAL REPURCHASE AGREEMENTS 41,735,000
----------------------------------------------------------------------------------- -------------
TOTAL INVESTMENTS, AT AMORTIZED COST AND VALUE $ 96,166,276+
----------------------------------------------------------------------------------- -------------
</TABLE>
+ Also represents cost for federal tax purposes.
* The repurchase agreements are fully collateralized by U.S. Treasury
obligations based on market prices at the date of the portfolio.
Note: The categories of investments are shown as a percentage of net assets
($91,344,036) at October 31, 1994.
(See Notes which are an integral part of the Financial Statements)
RIMCO MONUMENT U.S. TREASURY MONEY MARKET FUND
STATEMENT OF ASSETS AND LIABILITIES
OCTOBER 31, 1994
(UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<S> <C> <C>
ASSETS:
- ----------------------------------------------------------------------------------
Investments in repurchase agreements $ 41,735,000
- ----------------------------------------------------------------------------------
Investments in other securities 54,431,276
- ---------------------------------------------------------------------------------- -------------
Total investments, at amortized cost and value $ 96,166,276
- -------------------------------------------------------------------------------------------------
Cash 780
- -------------------------------------------------------------------------------------------------
Receivable for investments sold 4,990,289
- -------------------------------------------------------------------------------------------------
Interest receivable 161,349
- -------------------------------------------------------------------------------------------------
Deferred expenses 7,280
- ------------------------------------------------------------------------------------------------- --------------
Total assets 101,325,974
- -------------------------------------------------------------------------------------------------
LIABILITIES:
- -------------------------------------------------------------------------------------------------
Payable for investments purchased 9,732,288
- ----------------------------------------------------------------------------------
Dividends payable 243,354
- ----------------------------------------------------------------------------------
Accrued expenses 6,296
- ---------------------------------------------------------------------------------- -------------
Total liabilities 9,981,938
- ------------------------------------------------------------------------------------------------- --------------
NET ASSETS for 91,344,036 shares of beneficial interest outstanding $ 91,344,036
- ------------------------------------------------------------------------------------------------- --------------
NET ASSET VALUE, Offering Proceeds, and Redemption Proceeds Per Share:
($91,344,036 / 91,344,036 shares of beneficial interest outstanding) $1.00
- ------------------------------------------------------------------------------------------------- --------------
</TABLE>
(See Notes which are an integral part of the Financial Statements)
RIMCO MONUMENT U.S. TREASURY MONEY MARKET FUND
STATEMENT OF OPERATIONS
SIX MONTHS ENDED OCTOBER 31, 1994
(UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<S> <C> <C>
INVESTMENT INCOME:
- ----------------------------------------------------------------------------------------------------
Interest income $ 2,016,569
- ----------------------------------------------------------------------------------------------------
EXPENSES:
- ----------------------------------------------------------------------------------------------------
Investment advisory fee $ 236,412
- ----------------------------------------------------------------------------------------
Trustees' fees 1,354
- ----------------------------------------------------------------------------------------
Administrative personnel and services fees 62,803
- ----------------------------------------------------------------------------------------
Transfer and dividend disbursing agent fees and expenses 18,212
- ----------------------------------------------------------------------------------------
Fund share registration costs 12,243
- ----------------------------------------------------------------------------------------
Auditing fees 7,057
- ----------------------------------------------------------------------------------------
Legal fees 3,978
- ----------------------------------------------------------------------------------------
Printing and postage 5,749
- ----------------------------------------------------------------------------------------
Portfolio accounting fees 24,882
- ----------------------------------------------------------------------------------------
Insurance premiums 3,243
- ----------------------------------------------------------------------------------------
Miscellaneous 4,620
- ---------------------------------------------------------------------------------------- ----------
Total expenses 380,553
- ----------------------------------------------------------------------------------------
Deduct--Waiver of investment advisory fee 94,565
- ---------------------------------------------------------------------------------------- ----------
Net expenses 285,988
- ---------------------------------------------------------------------------------------------------- ------------
Net investment income $ 1,730,581
- ---------------------------------------------------------------------------------------------------- ------------
</TABLE>
(See Notes which are an integral part of the Financial Statements)
RIMCO MONUMENT U.S. TREASURY MONEY MARKET FUND
STATEMENT OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
YEAR ENDED APRIL 30,
1995* 1994
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
- -------------------------------------------------------------------------------
OPERATIONS--
- -------------------------------------------------------------------------------
Net investment income $ 1,730,581 $ 3,144,179
- ------------------------------------------------------------------------------- --------------- ---------------
DISTRIBUTIONS TO SHAREHOLDERS--
- -------------------------------------------------------------------------------
Dividends to shareholders from net investment income (1,730,581) (3,144,179)
- ------------------------------------------------------------------------------- --------------- ---------------
FUND SHARE (PRINCIPAL) TRANSACTIONS--
- -------------------------------------------------------------------------------
Proceeds from sale of shares 173,847,998 449,045,523
- -------------------------------------------------------------------------------
Net asset value of shares issued to shareholders in payment of dividends 147,752 118,945
- -------------------------------------------------------------------------------
Cost of shares redeemed (189,599,738) (429,091,872)
- ------------------------------------------------------------------------------- --------------- ---------------
Change in net assets from Fund share transactions (15,603,988) 20,072,596
- ------------------------------------------------------------------------------- --------------- ---------------
Change in net assets (15,603,988) 20,072,596
- -------------------------------------------------------------------------------
NET ASSETS:
- -------------------------------------------------------------------------------
Beginning of period 106,948,024 86,875,428
- ------------------------------------------------------------------------------- --------------- ---------------
End of period $ 91,344,036 $ 106,948,024
- ------------------------------------------------------------------------------- --------------- ---------------
</TABLE>
*Six months ended October 31, 1994 (unaudited).
(See Notes which are an integral part of the Financial Statements)
RIMCO MONUMENT U.S. TREASURY MONEY MARKET FUND
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
(FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD)
<TABLE>
<CAPTION>
YEAR ENDED APRIL 30,
1995* 1994 1993 1992**
<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 0.02 0.03 0.03 0.02
- ------------------------------------------------------------
LESS DISTRIBUTIONS
- ------------------------------------------------------------
Dividends to shareholders from net investment income (0.02) (0.03) (0.03) (0.02)
- ------------------------------------------------------------ --------- --------- --------- -----------
NET ASSET VALUE, END OF PERIOD $ 1.00 $ 1.00 $ 1.00 $ 1.00
- ------------------------------------------------------------ --------- --------- --------- -----------
TOTAL RETURN*** 1.86% 2.64% 2.92% 2.37%
- ------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS
- ------------------------------------------------------------
Expenses 0.61%(a) 0.56% 0.52% 0.41%(a)
- ------------------------------------------------------------
Net investment income 3.66%(a) 2.61% 2.86% 4.08%(a)
- ------------------------------------------------------------
Expense waiver/reimbursement (b) 0.20%(a) 0.16% 0.29% 0.42%(a)
- ------------------------------------------------------------
SUPPLEMENTAL DATA
- ------------------------------------------------------------
Net assets, end of period (000 omitted) $91,344 $106,948 $86,875 $51,039
- ------------------------------------------------------------
</TABLE>
* Six months ended October 31, 1994 (unaudited).
** Reflects operations for the period from October 8, 1991 (date of initial
public investment) to April 30, 1992.
*** Based on net asset value, which does not reflect the sales load or
contingent deferred sales charge, if applicable.
(a) Computed on an annualized basis.
(b) 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
PORTFOLIO OF INVESTMENTS
OCTOBER 31, 1994
(UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
<C> <S> <C>
- ------------- ----------------------------------------------------------------------------------- -------------
CORPORATE BONDS--36.8%
- --------------------------------------------------------------------------------------------------
BANKING--8.6%
-----------------------------------------------------------------------------------
$ 645,000 BankAmerica Corp., 9.70%, 8/1/2000 $ 688,666
-----------------------------------------------------------------------------------
960,000 Chemical New York Corp., 9.75%, 6/15/99 1,020,922
-----------------------------------------------------------------------------------
910,000 Citicorp, 9.50%, 2/1/2002 964,327
-----------------------------------------------------------------------------------
1,190,000 Golden West Financial Corp., 8.625%, 8/30/98 1,218,167
----------------------------------------------------------------------------------- -------------
Total 3,892,082
----------------------------------------------------------------------------------- -------------
FINANCE--20.2%
-----------------------------------------------------------------------------------
1,010,000 Associates Corp. of North America, 6.00%-8.80%, 8/1/98-3/15/2000 982,931
-----------------------------------------------------------------------------------
910,000 CIT Group Holdings, Inc., 5.46%, 5/19/97 910,000
-----------------------------------------------------------------------------------
1,825,000 Ford Capital BV, 9.375%, 1/1/98 1,905,209
-----------------------------------------------------------------------------------
2,070,000 Household Finance Corp., 6.00%-8.00%, 6/30/98-8/1/2004 2,001,416
-----------------------------------------------------------------------------------
1,390,000 International Lease Finance Corp., 4.75%-5.875%, 7/15/96-2/1/97 1,342,103
-----------------------------------------------------------------------------------
525,000 ITT Financial Corp., 10.125%, 4/5/99 564,296
-----------------------------------------------------------------------------------
930,000 Transamerica Finance Corp., 8.75%, 10/1/99 958,653
-----------------------------------------------------------------------------------
500,000 United States Leasing International, 6.625%, 5/15/2003 445,035
----------------------------------------------------------------------------------- -------------
Total 9,109,643
----------------------------------------------------------------------------------- -------------
INSURANCE--3.1%
-----------------------------------------------------------------------------------
]1,420,000 Travelers, Inc., 5.75%-7.75%, 4/15/98-6/15/99 1,381,201
----------------------------------------------------------------------------------- -------------
RETAIL--3.2%
-----------------------------------------------------------------------------------
1,450,000 Wal-Mart Stores, Inc., 8.00%, 9/15/2006 1,419,652
----------------------------------------------------------------------------------- -------------
TELECOMMUNICATIONS--1.7%
-----------------------------------------------------------------------------------
910,000 Northern Telecommunications Ltd., 6.00%, 9/1/2003 776,121
----------------------------------------------------------------------------------- -------------
TOTAL CORPORATE BONDS (IDENTIFIED COST, $17,006,556) 16,578,699
----------------------------------------------------------------------------------- -------------
</TABLE>
RIMCO MONUMENT BOND FUND
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
<C> <S> <C>
- ------------- ----------------------------------------------------------------------------------- -------------
GOVERNMENT BONDS--61.2%
- --------------------------------------------------------------------------------------------------
UNITED STATES TREASURY SECURITIES--38.3%
-----------------------------------------------------------------------------------
$ 5,210,000 United States Treasury Bonds, 6.25%-7.50%, 8/15/2023-11/15/2024 $ 4,453,999
-----------------------------------------------------------------------------------
12,885,000 United States Treasury Notes, 6.25%-7.25%, 8/31/96-5/15/2004 12,801,184
----------------------------------------------------------------------------------- -------------
Total 17,255,183
----------------------------------------------------------------------------------- -------------
UNITED STATES GOVERNMENT AGENCIES--22.9%
-----------------------------------------------------------------------------------
2,785,000 Federal Farm Credit Bank, 6.38%-9.20%, 7/25/96-8/22/2005 2,799,711
-----------------------------------------------------------------------------------
1,880,000 Federal Home Loan Bank, 6.05%, 1/26/99 1,880,000
-----------------------------------------------------------------------------------
4,875,000 Federal National Mortgage Association, 5.87%-7.77%, 7/18/2001-
10/15/2003 4,392,083
-----------------------------------------------------------------------------------
1,275,000 Student Loan Marketing Association, 5.38%-5.56%, 11/20/97-11/24/97 1,277,713
----------------------------------------------------------------------------------- -------------
Total 10,349,507
----------------------------------------------------------------------------------- -------------
TOTAL GOVERNMENT BONDS (IDENTIFIED COST, $28,152,850) 27,604,690
----------------------------------------------------------------------------------- -------------
*REPURCHASE AGREEMENT--6.1%
- --------------------------------------------------------------------------------------------------
2,750,000 Donaldson, Lufkin & Jenrette Securities Corp., 4.75%, dated 10/31/94, due 11/1/94 2,750,000
----------------------------------------------------------------------------------- -------------
TOTAL INVESTMENTS (IDENTIFIED COST, $47,909,406) $ 46,933,389+
----------------------------------------------------------------------------------- -------------
</TABLE>
* The repurchase agreement is fully collateralized by U.S. government and/or
agency obligations based on market prices at the date of the portfolio.
+ The cost for federal tax purposes amounts to $47,909,406. The net unrealized
depreciation of investments on a federal tax basis amounts to $976,017, which
is comprised of $293 appreciation and $976,310 depreciation at October 31,
1994.
Note: The categories of investments are shown as a percentage of net assets
($45,097,994) at October 31, 1994.
(See Notes which are an integral part of the Financial Statements)
RIMCO MONUMENT BOND FUND
STATEMENT OF ASSETS AND LIABILITIES
OCTOBER 31, 1994
(UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<S> <C> <C>
ASSETS:
- ---------------------------------------------------------------------------------------------------
Investments in securities, at amortized cost and value
(identified and tax cost, $47,909,406) $ 46,933,389
- ---------------------------------------------------------------------------------------------------
Cash 175
- ---------------------------------------------------------------------------------------------------
Interest receivable 666,255
- ---------------------------------------------------------------------------------------------------
Receivable for Fund shares sold 164,797
- ---------------------------------------------------------------------------------------------------
Deferred expenses 7,163
- --------------------------------------------------------------------------------------------------- -------------
Total assets 47,771,779
- ---------------------------------------------------------------------------------------------------
LIABILITIES:
- ---------------------------------------------------------------------------------------------------
Payable for investments purchased $ 2,402,089
- -------------------------------------------------------------------------------------
Dividends payable 203,651
- -------------------------------------------------------------------------------------
Payable for Fund shares redeemed 42,827
- -------------------------------------------------------------------------------------
Accrued expenses 25,218
- ------------------------------------------------------------------------------------- ------------
Total liabilities 2,673,785
- --------------------------------------------------------------------------------------------------- -------------
NET ASSETS for 4,934,241 shares of beneficial interest outstanding $ 45,097,994
- --------------------------------------------------------------------------------------------------- -------------
NET ASSETS CONSIST OF:
- ---------------------------------------------------------------------------------------------------
Paid-in capital $ 49,883,498
- ---------------------------------------------------------------------------------------------------
Net unrealized appreciation (depreciation) of investments (976,017)
- ---------------------------------------------------------------------------------------------------
Accumulated net realized gain (loss) on investments (3,809,487)
- --------------------------------------------------------------------------------------------------- -------------
Total Net Assets $ 45,097,994
- --------------------------------------------------------------------------------------------------- -------------
NET ASSET VALUE, AND REDEMPTION PROCEEDS PER SHARE
($45,097,994 / 4,934,241 shares of beneficial interest outstanding) $9.14
- --------------------------------------------------------------------------------------------------- -------------
Offering Price Per Share: (100/96.5 of $9.14)* $9.47
- --------------------------------------------------------------------------------------------------- -------------
</TABLE>
* See "What Shares Cost" in the prospectus.
(See Notes which are an integral part of the Financial Statements)
RIMCO MONUMENT BOND FUND
STATEMENT OF OPERATIONS
SIX MONTHS ENDED OCTOBER 31, 1994
(UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<S> <C> <C>
INVESTMENT INCOME:
- ---------------------------------------------------------------------------------------------------
Interest income $ 1,557,636
- ---------------------------------------------------------------------------------------------------
EXPENSES:
- ---------------------------------------------------------------------------------------------------
Investment advisory fee $ 178,179
- ---------------------------------------------------------------------------------------
Trustees' fees 969
- ---------------------------------------------------------------------------------------
Administrative personnel and services fees 31,559
- ---------------------------------------------------------------------------------------
Transfer and dividend disbursing agent fees and expenses 19,170
- ---------------------------------------------------------------------------------------
Fund share registration costs 10,554
- ---------------------------------------------------------------------------------------
Auditing fees 7,154
- ---------------------------------------------------------------------------------------
Legal fees 3,269
- ---------------------------------------------------------------------------------------
Printing and postage 5,235
- ---------------------------------------------------------------------------------------
Portfolio accounting fees 27,172
- ---------------------------------------------------------------------------------------
Insurance premiums 3,055
- ---------------------------------------------------------------------------------------
Miscellaneous 3,870
- --------------------------------------------------------------------------------------- ----------
Total expenses 290,186
- ---------------------------------------------------------------------------------------
Deduct--Waiver of investment advisory fee 97,404
- --------------------------------------------------------------------------------------- ----------
Net expenses 192,782
- --------------------------------------------------------------------------------------------------- -------------
Net investment income 1,364,854
- --------------------------------------------------------------------------------------------------- -------------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:
- ---------------------------------------------------------------------------------------------------
Net realized gain (loss) on investments (identified cost basis) (2,485,568)
- ---------------------------------------------------------------------------------------------------
Net change in unrealized appreciation (depreciation) on investments 850,896
- --------------------------------------------------------------------------------------------------- -------------
Net realized and unrealized gain (loss) on investments (1,634,672)
- --------------------------------------------------------------------------------------------------- -------------
Change in net assets resulting from operations $ (269,818)
- --------------------------------------------------------------------------------------------------- -------------
</TABLE>
(See Notes which are an integral part of the Financial Statements)
RIMCO MONUMENT BOND FUND
STATEMENT OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
YEAR ENDED APRIL 30,
1995* 1994
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
- -----------------------------------------------------------------------------------
OPERATIONS--
- -----------------------------------------------------------------------------------
Net investment income $ 1,364,854 $ 2,482,106
- -----------------------------------------------------------------------------------
Net realized gain (loss) on investments ($2,485,568 net loss and $1,666,331 net
gain, respectively, as computed for federal tax purposes) (2,485,568) 342,034
- -----------------------------------------------------------------------------------
Net change in unrealized appreciation (depreciation) of investments 850,896 (2,235,039)
- ----------------------------------------------------------------------------------- ------------- --------------
Change in net assets resulting from operations (269,818) 589,101
- ----------------------------------------------------------------------------------- ------------- --------------
DISTRIBUTIONS TO SHAREHOLDERS--
- -----------------------------------------------------------------------------------
Dividends to shareholders from net investment income (1,364,854) (2,481,723)
- -----------------------------------------------------------------------------------
Distributions to shareholders from net realized gain on investment transactions -- (2,701,669)
- ----------------------------------------------------------------------------------- ------------- --------------
Change in net assets from distributions to shareholders (1,364,854) (5,183,392)
- ----------------------------------------------------------------------------------- ------------- --------------
FUND SHARE (PRINCIPAL) TRANSACTIONS--
- -----------------------------------------------------------------------------------
Proceeds from sale of shares 3,548,726 20,515,810
- -----------------------------------------------------------------------------------
Net asset value of shares issued to shareholders in payment of dividends declared 157,565 353,981
- -----------------------------------------------------------------------------------
Cost of shares redeemed (4,526,023) (13,391,583)
- ----------------------------------------------------------------------------------- ------------- --------------
Change in net assets from Fund share transactions (819,732) 7,478,208
- ----------------------------------------------------------------------------------- ------------- --------------
Change in net assets (2,454,404) 2,883,917
- -----------------------------------------------------------------------------------
NET ASSETS:
- -----------------------------------------------------------------------------------
Beginning of period 47,552,398 44,668,481
- ----------------------------------------------------------------------------------- ------------- --------------
End of period $ 45,097,994 $ 47,552,398
- ----------------------------------------------------------------------------------- ------------- --------------
</TABLE>
* Six months ended October 31, 1994 (unaudited).
(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**
<S> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD $ 9.46 $ 10.40 $ 10.00
- -----------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS
- -----------------------------------------------------------------------------
Net investment income 0.27 0.53 0.60
- -----------------------------------------------------------------------------
Net realized and unrealized gain (loss) on investments (0.32) (0.38) 0.66
- ----------------------------------------------------------------------------- --------- --------- ---------
Total from investment operations (0.05) 0.15 1.26
- -----------------------------------------------------------------------------
LESS DISTRIBUTIONS
- -----------------------------------------------------------------------------
Dividends to shareholders from net investment income (0.27) (0.53) (0.60)
- -----------------------------------------------------------------------------
Distributions to shareholders from net realized gain
on investment transactions -- (0.56) (0.26)
- ----------------------------------------------------------------------------- --------- --------- ---------
Total distributions (0.27) (1.09) (0.86)
- ----------------------------------------------------------------------------- --------- --------- ---------
NET ASSET VALUE, END OF PERIOD $ 9.14 $ 9.46 $ 10.40
- ----------------------------------------------------------------------------- --------- --------- ---------
TOTAL RETURN*** (0.53%) 1.10% 12.93%
- -----------------------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS
- -----------------------------------------------------------------------------
Expenses 0.81%(a) 0.68% 0.50%(a)
- -----------------------------------------------------------------------------
Net investment income 5.75%(a) 5.15% 5.95%(a)
- -----------------------------------------------------------------------------
Expense waiver/reimbursement (b) 0.41%(a) 0.48% 0.65%(a)
- -----------------------------------------------------------------------------
SUPPLEMENTAL DATA
- -----------------------------------------------------------------------------
Net assets, end of period (000 omitted) $45,098 $47,552 $44,668
- -----------------------------------------------------------------------------
Portfolio turnover rate 183% 344% 371%
- -----------------------------------------------------------------------------
</TABLE>
* Six months ended October 31, 1994 (unaudited).
** Reflects operations for the period from May 11, 1992 (date of initial public
investment) to April 30, 1993.
*** Based on net asset value, which does not reflect the sales load or
contingent deferred sales charge, if applicable.
(a) Computed on an annualized basis.
(b) 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 STOCK FUND
PORTFOLIO OF INVESTMENTS
OCTOBER 31, 1994
(UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
<C> <S> <C>
- ------------ ------------------------------------------------------------------------------------- -------------
COMMON STOCKS--92.2%
- ---------------------------------------------------------------------------------------------------
BASIC MATERIALS--7.5%
-------------------------------------------------------------------------------------
13,015 Dow Chemical Co. $ 956,603
-------------------------------------------------------------------------------------
17,755 Imperial Chemical Industries PLC 923,260
-------------------------------------------------------------------------------------
8,650 Nucor Corp. 534,138
-------------------------------------------------------------------------------------
10,145 Scott Paper Co. 670,838
-------------------------------------------------------------------------------------
18,450 Union Carbide Corp. Holdings Co. 611,156
-------------------------------------------------------------------------------------
19,785 Weyerhaeuser Co. 776,561
------------------------------------------------------------------------------------- -------------
Total 4,472,556
------------------------------------------------------------------------------------- -------------
CAPITAL GOODS--11.4%
-------------------------------------------------------------------------------------
12,510 Caterpillar, Inc. 747,472
-------------------------------------------------------------------------------------
17,540 Deere & Co. 1,258,495
-------------------------------------------------------------------------------------
22,610 General Electric Co. 1,105,064
-------------------------------------------------------------------------------------
11,060 ITT Corp. 976,045
-------------------------------------------------------------------------------------
18,330 Martin Marietta Corp. 840,889
-------------------------------------------------------------------------------------
17,285 Textron, Inc. 881,535
-------------------------------------------------------------------------------------
16,185 United Technologies Corp. 1,019,655
------------------------------------------------------------------------------------- -------------
Total 6,829,155
------------------------------------------------------------------------------------- -------------
CONSUMER CYCLICAL--3.7%
-------------------------------------------------------------------------------------
22,890 Penney, (J.C.) Inc. 1,158,806
-------------------------------------------------------------------------------------
23,625 Premark International, Inc. 1,057,219
------------------------------------------------------------------------------------- -------------
Total 2,216,025
------------------------------------------------------------------------------------- -------------
CONSUMER SERVICES--13.1%
-------------------------------------------------------------------------------------
11,585 Capital Cities/ABC, Inc. 963,002
-------------------------------------------------------------------------------------
45,490 McDonald's Corp. 1,307,838
-------------------------------------------------------------------------------------
11,684 Tribune Co. 614,871
-------------------------------------------------------------------------------------
</TABLE>
RIMCO MONUMENT STOCK FUND
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
<C> <S> <C>
- ------------ ------------------------------------------------------------------------------------- -------------
COMMON STOCKS--CONTINUED
- ---------------------------------------------------------------------------------------------------
CONSUMER SERVICES--CONTINUED
-------------------------------------------------------------------------------------
43,890 Wendy's International, Inc. $ 647,378
------------------------------------------------------------------------------------- -------------
Total 3,533,089
------------------------------------------------------------------------------------- -------------
CONSUMER STAPLES--13.1%
-------------------------------------------------------------------------------------
29,431 Archer-Daniels-Midland Co. 842,462
-------------------------------------------------------------------------------------
23,820 Coca Cola Co. 1,196,954
-------------------------------------------------------------------------------------
31,430 Gap, Inc. 1,060,763
-------------------------------------------------------------------------------------
40,520 *Kroger Co. 1,058,585
-------------------------------------------------------------------------------------
19,895 Philip Morris Cos., Inc. 1,218,569
-------------------------------------------------------------------------------------
20,850 Procter & Gamble Co. 1,303,125
-------------------------------------------------------------------------------------
38,995 *Safeway, Inc. 1,150,353
------------------------------------------------------------------------------------- -------------
Total 7,830,811
------------------------------------------------------------------------------------- -------------
ENERGY--10.5%
-------------------------------------------------------------------------------------
17,065 Ashland Oil Inc. 663,401
-------------------------------------------------------------------------------------
12,045 British Petroleum Co., PLC 1,023,825
-------------------------------------------------------------------------------------
38,477 Coastal Corp. 1,096,595
-------------------------------------------------------------------------------------
8,560 MAPCO, Inc. 467,590
-------------------------------------------------------------------------------------
15,320 Mobil Corp. 1,317,520
-------------------------------------------------------------------------------------
6,650 Royal Dutch Petroleum Co. 774,725
-------------------------------------------------------------------------------------
28,005 Sonat Inc. 910,163
------------------------------------------------------------------------------------- -------------
Total 6,253,819
------------------------------------------------------------------------------------- -------------
FINANCIALS--9.4%
-------------------------------------------------------------------------------------
40,655 American Express 1,250,140
-------------------------------------------------------------------------------------
5,465 American International Group, Inc. 511,660
-------------------------------------------------------------------------------------
22,760 Citicorp 1,086,790
-------------------------------------------------------------------------------------
24,650 Fleet Financial Group, Inc. 844,263
-------------------------------------------------------------------------------------
20,515 Franklin Resources, Inc. 838,551
-------------------------------------------------------------------------------------
9,635 Kemper Corp. 503,429
-------------------------------------------------------------------------------------
</TABLE>
RIMCO MONUMENT STOCK FUND
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
<C> <S> <C>
- ------------ ------------------------------------------------------------------------------------- -------------
COMMON STOCKS--CONTINUED
- ---------------------------------------------------------------------------------------------------
FINANCIALS--CONTINUED
-------------------------------------------------------------------------------------
3,945 Wells Fargo & Co. $ 586,326
------------------------------------------------------------------------------------- -------------
Total 5,621,159
------------------------------------------------------------------------------------- -------------
HEALTH CARE--8.3%
-------------------------------------------------------------------------------------
15,095 *Amgen, Inc. 841,546
-------------------------------------------------------------------------------------
22,887 Columbia/HCA Healthcare Corp. 952,671
-------------------------------------------------------------------------------------
53,775 Humana, Inc. 1,310,766
-------------------------------------------------------------------------------------
27,492 Mallinckrodt Group, Inc. 835,070
-------------------------------------------------------------------------------------
13,905 Pfizer, Inc. 1,030,708
------------------------------------------------------------------------------------- -------------
Total 4,970,761
------------------------------------------------------------------------------------- -------------
TECHNOLOGY--9.0%
-------------------------------------------------------------------------------------
29,265 *Cisco Systems, Inc. 881,608
-------------------------------------------------------------------------------------
25,150 *Compaq Computer Corp. 1,009,144
-------------------------------------------------------------------------------------
14,225 Intel Corp. 883,728
-------------------------------------------------------------------------------------
24,315 *Oracle Systems Corp. 1,118,490
-------------------------------------------------------------------------------------
21,995 *Silicon Graphics, Inc. 668,098
-------------------------------------------------------------------------------------
8,000 Xerox Corp. 820,000
------------------------------------------------------------------------------------- -------------
Total 5,381,068
------------------------------------------------------------------------------------- -------------
UTILITIES--GAS & ELECTRIC--4.6%
-------------------------------------------------------------------------------------
28,945 FPL Group Inc. 958,803
-------------------------------------------------------------------------------------
44,565 Illinova Corp. 880,159
-------------------------------------------------------------------------------------
30,205 Ipalco Enterprises Inc. 913,701
------------------------------------------------------------------------------------- -------------
Total 2,752,663
------------------------------------------------------------------------------------- -------------
UTILITIES--TELEPHONE--8.8%
-------------------------------------------------------------------------------------
30,110 Ameritech Corp 1,215,691
-------------------------------------------------------------------------------------
26,200 BellSouth Corp. 1,395,150
-------------------------------------------------------------------------------------
30,490 GTE Corp. 937,568
-------------------------------------------------------------------------------------
22,285 Southwestern Bell Corp. 933,185
-------------------------------------------------------------------------------------
</TABLE>
RIMCO MONUMENT STOCK FUND
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT
OR SHARES VALUE
<C> <S> <C>
- ------------ ------------------------------------------------------------------------------------- -------------
COMMON STOCKS--CONTINUED
- ---------------------------------------------------------------------------------------------------
UTILITIES-- TELEPHONE--CONTINUED
-------------------------------------------------------------------------------------
14,575 Telefonos De Mexico, S.A. de C.V. $ 803,446
------------------------------------------------------------------------------------- -------------
Total 5,285,040
------------------------------------------------------------------------------------- -------------
TOTAL COMMON STOCKS (IDENTIFIED COST, $47,886,512) 55,146,146
------------------------------------------------------------------------------------- -------------
PREFERRED STOCKS--2.9%
- ---------------------------------------------------------------------------------------------------
CONSUMER CYCLICAL--2.9%
-------------------------------------------------------------------------------------
9,155 Ford Motor Co., Conv. Pfd. 885,746
-------------------------------------------------------------------------------------
15,215 Sears Roebuck & Co., Conv. Pfd. 861,549
------------------------------------------------------------------------------------- -------------
TOTAL PREFERRED STOCK (IDENTIFIED COST, $1,654,668) 1,747,295
------------------------------------------------------------------------------------- -------------
**REPURCHASE AGREEMENT--4.9%
- ---------------------------------------------------------------------------------------------------
$ 2,926,000 Donaldson, Lufkin & Jenrette Securities Corp., 4.75%, dated 10/31/94, due 11/1/94 (at
amortized cost) 2,926,000
------------------------------------------------------------------------------------- -------------
TOTAL INVESTMENT (IDENTIFIED COST, $52,467,180) $ 59,819,441+
------------------------------------------------------------------------------------- -------------
</TABLE>
*Non-income producing.
**The repurchase agreement is fully collateralized by U.S. government
obligations based on market prices at the date of the portfolio.
+ The cost for federal tax purposes amounts to $52,467,180. The net unrealized
appreciation of investments on a federal tax basis amounts to $7,352,261 which
is comprised of $8,141,595 appreciation and $789,334 depreciation at
October 31, 1994.
Note: The categories of investments are shown as a percentage of net assets
($59,830,844) at October 31, 1994.
(See Notes which are an integral part of the Financial Statements)
RIMCO MONUMENT STOCK FUND
STATEMENT OF ASSETS AND LIABILITIES
OCTOBER 31, 1994
(UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<S> <C> <C>
ASSETS:
- ---------------------------------------------------------------------------------------------------
Investments in securities, at amortized cost and value (identified and tax cost,
$52,467,180) $ 59,819,441
- ---------------------------------------------------------------------------------------------------
Cash 135
- ---------------------------------------------------------------------------------------------------
Receivable for investments sold 596,467
- ---------------------------------------------------------------------------------------------------
Dividends and interest receivable 126,519
- ---------------------------------------------------------------------------------------------------
Receivable for Fund shares sold 2,028
- ---------------------------------------------------------------------------------------------------
Deferred expenses 5,511
- --------------------------------------------------------------------------------------------------- -------------
Total assets 60,550,101
- ---------------------------------------------------------------------------------------------------
LIABILITIES:
- ---------------------------------------------------------------------------------------------------
Payable for Fund shares redeemed $ 478,048
- ---------------------------------------------------------------------------------------
Payable for investments purchased 201,842
- ---------------------------------------------------------------------------------------
Accrued expenses 39,367
- --------------------------------------------------------------------------------------- ----------
Total liabilities 719,257
- --------------------------------------------------------------------------------------------------- -------------
NET ASSETS for 4,988,341 shares of beneficial interest outstanding $ 59,830,844
- --------------------------------------------------------------------------------------------------- -------------
NET ASSETS CONSIST OF:
- ---------------------------------------------------------------------------------------------------
Paid-in capital $ 51,811,515
- ---------------------------------------------------------------------------------------------------
Net unrealized appreciation (depreciation) of investments 7,352,261
- ---------------------------------------------------------------------------------------------------
Accumulated net realized gain (loss) on investments 562,975
- ---------------------------------------------------------------------------------------------------
Undistributed net investment income 104,093
- --------------------------------------------------------------------------------------------------- -------------
Total Net Assets $ 59,830,844
- --------------------------------------------------------------------------------------------------- -------------
NET ASSET VALUE and Redemption Proceeds Per Share:
($59,830,844 / 4,988,341 shares of beneficial interest outstanding) $11.99
- --------------------------------------------------------------------------------------------------- -------------
Offering Price Per Share: (100/96.5 of $11.99)* $12.42
- --------------------------------------------------------------------------------------------------- -------------
</TABLE>
*See "What Shares Cost" in the prospectus.
(See Notes which are an integral part of the Financial Statements)
RIMCO MONUMENT STOCK FUND
STATEMENT OF OPERATIONS
SIX MONTHS ENDED OCTOBER 31, 1994
(UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<S> <C> <C>
INVESTMENT INCOME:
- ---------------------------------------------------------------------------------------------------
Dividend income $ 748,835
- ---------------------------------------------------------------------------------------------------
Interest income 73,027
- --------------------------------------------------------------------------------------------------- ------------
Total income 821,862
- ---------------------------------------------------------------------------------------------------
EXPENSES:
- ---------------------------------------------------------------------------------------------------
Investment advisory fee $ 226,599
- ---------------------------------------------------------------------------------------
Trustees' fees 924
- ---------------------------------------------------------------------------------------
Administrative personnel and services fees 40,143
- ---------------------------------------------------------------------------------------
Transfer and dividend disbursing agent fees and expenses 22,323
- ---------------------------------------------------------------------------------------
Fund share registration costs 11,184
- ---------------------------------------------------------------------------------------
Auditing fees 6,719
- ---------------------------------------------------------------------------------------
Legal fees 2,150
- ---------------------------------------------------------------------------------------
Printing and postage 3,000
- ---------------------------------------------------------------------------------------
Portfolio accounting fees 24,088
- ---------------------------------------------------------------------------------------
Insurance premiums 2,869
- ---------------------------------------------------------------------------------------
Miscellaneous 3,772
- --------------------------------------------------------------------------------------- ----------
Total expenses 343,771
- ---------------------------------------------------------------------------------------
Deduct--Waiver of investment advisory fee 47,071
- --------------------------------------------------------------------------------------- ----------
Net expenses 296,700
- --------------------------------------------------------------------------------------------------- ------------
Net investment income 525,162
- --------------------------------------------------------------------------------------------------- ------------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:
- ---------------------------------------------------------------------------------------------------
Net realized gain (loss) on investments (identified cost basis) 562,755
- ---------------------------------------------------------------------------------------------------
Net change in unrealized appreciation (depreciation) on investments 2,432,883
- --------------------------------------------------------------------------------------------------- ------------
Net realized and unrealized gain (loss) on investments 2,995,638
- --------------------------------------------------------------------------------------------------- ------------
Change in net assets resulting from operations $ 3,520,800
- --------------------------------------------------------------------------------------------------- ------------
</TABLE>
(See Notes which are an integral part of the Financial Statements)
RIMCO MONUMENT STOCK FUND
STATEMENT OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
YEAR ENDED APRIL 30,
1995* 1994
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
- -----------------------------------------------------------------------------------
OPERATIONS--
- -----------------------------------------------------------------------------------
Net investment income $ 525,162 $ 664,170
- -----------------------------------------------------------------------------------
Net realized gain (loss) on investments ($562,755 and $3,043,001 net gain,
respectively, as computed for federal tax purposes) 562,755 3,441,004
- -----------------------------------------------------------------------------------
Net change in unrealized appreciation (depreciation) of investments 2,432,883 2,282,550
- ----------------------------------------------------------------------------------- ------------- --------------
Change in net assets resulting from operations 3,520,800 6,387,724
- ----------------------------------------------------------------------------------- ------------- --------------
DISTRIBUTIONS TO SHAREHOLDERS--
- -----------------------------------------------------------------------------------
Dividends to shareholders from net investment income (454,057) (646,560)
- -----------------------------------------------------------------------------------
Distributions to shareholders from net realized gain on investment transactions (2,380,101) (24,941)
- ----------------------------------------------------------------------------------- ------------- --------------
Change in net assets from distributions to shareholders (2,834,158) (671,501)
- ----------------------------------------------------------------------------------- ------------- --------------
FUND SHARE (PRINCIPAL) TRANSACTIONS--
- -----------------------------------------------------------------------------------
Proceeds from sale of shares 7,001,352 29,948,959
- -----------------------------------------------------------------------------------
Net asset value of shares issued to shareholders in payment of dividends declared 673,501 53,313
- -----------------------------------------------------------------------------------
Cost of shares redeemed (7,127,917) (14,659,947)
- ----------------------------------------------------------------------------------- ------------- --------------
Change in net assets from Fund share transactions 546,936 15,342,325
- ----------------------------------------------------------------------------------- ------------- --------------
Change in net assets 1,233,578 21,058,548
- -----------------------------------------------------------------------------------
NET ASSETS:
- -----------------------------------------------------------------------------------
Beginning of period 58,597,266 37,538,718
- ----------------------------------------------------------------------------------- ------------- --------------
End of period (including undistributed net investment income of $104,093 and
$32,988, respectively) $ 59,830,844 $ 58,597,266
- ----------------------------------------------------------------------------------- ------------- --------------
</TABLE>
*Six months ended October 31, 1994 (unaudited).
(See Notes which are an integral part of the Financial Statements)
RIMCO MONUMENT STOCK FUND
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
(FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD)
<TABLE>
<CAPTION>
YEAR ENDED APRIL 30,
1995* 1994 1993**
<S> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD $ 11.89 $ 10.46 $ 10.00
- ---------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS
- ---------------------------------------------------------------------------
Net investment income 0.11 0.16 0.21
- ---------------------------------------------------------------------------
Net realized and unrealized gain (loss) on investments 0.57 1.44 0.46
- --------------------------------------------------------------------------- --------- --------- ----------
Total from investment operations 0.68 1.60 0.67
- ---------------------------------------------------------------------------
LESS DISTRIBUTIONS
- ---------------------------------------------------------------------------
Dividends to shareholders from net investment income (0.09) (0.16) (0.21)
- ---------------------------------------------------------------------------
Distributions to shareholders from net realized gain on
investment transactions (0.49) (0.01) --
- --------------------------------------------------------------------------- --------- --------- ----------
Total distributions (0.58) (0.17) (0.21)
- --------------------------------------------------------------------------- --------- --------- ----------
NET ASSET VALUE, END OF PERIOD $ 11.99 $ 11.89 $ 10.46
- --------------------------------------------------------------------------- --------- --------- ----------
TOTAL RETURN*** 5.91% 15.28% 6.35%
- ---------------------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS
- ---------------------------------------------------------------------------
Expenses 0.98%(a) 1.00% 0.69%(a)
- ---------------------------------------------------------------------------
Net investment income 1.74%(a) 1.36% 2.18%(a)
- ---------------------------------------------------------------------------
Expense waiver/reimbursement (b) 0.16%(a) 0.20% 0.47%(a)
- ---------------------------------------------------------------------------
SUPPLEMENTAL DATA
- ---------------------------------------------------------------------------
Net assets, end of period (000 omitted) $59,831 $58,597 $37,539
- ---------------------------------------------------------------------------
Portfolio turnover rate 25% 89% 92%
- ---------------------------------------------------------------------------
</TABLE>
* Six months ended October 31, 1994 (unaudited).
** Reflects operations for the period from May 11, 1992 (date of initial public
investment) to April 30, 1993.
*** Based on net asset value, which does not reflect the sales load or
contingent deferred sales charge, if applicable.
(a) Computed on an annualized basis.
(b) 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 FUNDS
COMBINED NOTES TO FINANCIAL STATEMENTS
OCTOBER 31, 1994
(UNAUDITED)
- --------------------------------------------------------------------------------
(1) ORGANIZATION
RIMCO Monument Funds (the "Trust") is registered under the Investment Company
Act of 1940, as amended (the "Act"), as an open-end, management investment
company. The Trust consists of four diversified portfolios (individually
referred to as the "Fund", or collectively as the "Funds"): RIMCO Monument Prime
Money Market Fund ("Prime Fund"), RIMCO Monument U.S. Treasury Money Market Fund
("Treasury Fund"), RIMCO Monument Bond Fund ("Bond Fund"), and RIMCO Monument
Stock Fund ("Stock Fund"). The assets of each portfolio are segregated, and a
shareholder's interest is limited to the portfolio in which shares are held.
(2) SIGNIFICANT ACCOUNTING POLICIES
The following is a summary of significant accounting policies consistently
followed by the Funds in the preparation of their financial statements. These
policies are in conformity with generally accepted accounting principles.
A. INVESTMENT VALUATIONS--Prime Fund's and Treasury Fund's use of the
amortized cost method to value their portfolio securities is in accordance
with Rule 2a-7 under the Act.
Listed equity securities, corporate bonds, and other fixed income
securities are valued at the last sale price reported on national
securities exchanges. Unlisted securities and bonds are generally valued at
the price provided by an independent pricing service. U.S. government
obligations are generally valued at the mean between the over-the-counter
bid and asked prices as furnished by an independent pricing service.
Short-term securities with remaining maturities of sixty days or less may
be stated at amortized cost, which approximates value.
B. REPURCHASE AGREEMENTS--It is the policy of the Funds to require the
custodian bank to take possession, to have legally segregated in the
Federal Reserve Book Entry System, or to have segregated within the
custodian bank's vault, all securities held as collateral in support of
repurchase agreement investments. Additionally, procedures have been
established by the Funds to monitor, on a daily basis, the market value of
each repurchase agreement's underlying collateral to ensure that the value
of collateral at least equals the principal amount of the repurchase
agreement, including accrued interest.
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 the guidelines
established by the Board of Trustees (the "Trustees"). Risks may arise from
the potential inability of counterparties to honor the terms of these
repurchase agreements. Accordingly, the Funds could receive less than the
repurchase price on the sale of collateral securities.
RIMCO MONUMENT FUNDS
- --------------------------------------------------------------------------------
C. INVESTMENT INCOME, EXPENSES AND DISTRIBUTIONS--Interest income and expenses
for the Bond Fund, Prime Fund and Treasury Fund are accrued daily. Bond
premium and discount, if applicable, are amortized as required by the
Internal Revenue Code, as amended ("Code"). Distributions to shareholders
are recorded on the ex-dividend date.
Dividend income and distributions to shareholders for the Stock Fund are
recorded on the ex-dividend date. Interest income and expenses are accrued
daily. Bond premium and discount, if applicable, are amortized as required
by the Code.
D. FEDERAL TAXES--It is the Funds' policy to comply with the provisions of the
Code applicable to regulated investment companies and to distribute to
shareholders each year substantially all of their taxable income.
Accordingly, no provisions for federal income tax are necessary.
At April 30, 1994, the Prime Fund, for federal tax purposes, had a capital
loss carryforward of $897,307, which will reduce the Prime Fund's taxable
income arising from future net realized gains on investments, if any, to
the extent permitted by the Code, and thus will reduce the amount of the
distributions to shareholders which would otherwise be necessary to relieve
the Prime Fund of any liability for federal tax. Pursuant to the Code, such
capital loss carryforward will expire in 2002. Additionally, net capital
losses of $60,687 attributable to security transactions incurred after
October 31, 1993, are treated as arising on May 1, 1994, the first day of
the Prime Fund's taxable year.
Net capital losses of $1,168,528 attributable to the Bond Fund's security
transactions incurred after October 31, 1993 are treated as arising on May
1, 1994, the first day of the Bond Fund's taxable year.
E. WHEN-ISSUED AND DELAYED DELIVERY TRANSACTIONS--The Funds may engage in
when-issued or delayed delivery transactions. The Funds record when-issued
securities on the trade date and maintain security positions such that
sufficient liquid assets will be available to make payment for the
securities purchased. Securities purchased on a when-issued or delayed
delivery basis are marked to market daily and begin earning interest on the
settlement date.
F. DEFERRED EXPENSES--The costs incurred by each Fund with respect to
registration of its shares in its first fiscal year, excluding the initial
expense of registering the shares, have been deferred and are being
amortized using the straight-line method over a period not to exceed five
years from each Fund's commencement date.
G. OTHER--Investment transactions are accounted for on the trade date.
(3) SHARES OF BENEFICIAL INTEREST
The Declaration of Trust permits the Trustees to issue an unlimited number of
full and fractional shares of beneficial interest (without par value). At
October 31, 1994, capital paid-in for Prime Fund, Treasury Fund, Bond Fund and
Stock Fund aggregated $339,872,682, $91,344,036, $49,883,498, and $51,811,515,
respectively. Transactions in Fund shares were as follows:
RIMCO MONUMENT FUNDS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRIME FUND TREASURY FUND BOND FUND STOCK FUND
YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED
APRIL 30, APRIL 30, APRIL 30, APRIL 30,
1995* 1995* 1995* 1995*
<S> <C> <C> <C> <C>
Shares sold 453,889,115 173,847,998 379,777 589,714
- ----------------------------------------------------
Shares issued to shareholders in payment of
dividends declared 730,179 147,752 16,927 57,835
- ----------------------------------------------------
Shares redeemed (449,912,744) (189,599,738) (487,173) (589,471)
- ---------------------------------------------------- -------------- -------------- -------------- --------------
Net change resulting from Fund share
transactions 4,706,550 (15,603,988) (90,469) 58,078
- ---------------------------------------------------- -------------- -------------- -------------- --------------
<CAPTION>
PRIME FUND TREASURY FUND BOND FUND STOCK FUND
YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED
APRIL 30, 1994 APRIL 30, 1994 APRIL 30, 1994 APRIL 30, 1994
<S> <C> <C> <C> <C>
Shares sold 1,060,003,920 449,045,523 2,018,699 2,582,216
- ----------------------------------------------------
Shares issued to shareholders in payment of
dividends declared 814,399 118,945 34,950 4,560
- ----------------------------------------------------
Shares redeemed (1,003,408,484) (429,091,872) (1,323,332) (1,244,449)
- ---------------------------------------------------- -------------- -------------- -------------- --------------
Net change resulting from Fund share
transactions 57,409,835 20,072,596 730,317 1,342,327
- ---------------------------------------------------- -------------- -------------- -------------- --------------
</TABLE>
* Six months ended October 31, 1994.
(4) INVESTMENT ADVISORY FEE AND OTHER TRANSACTIONS WITH AFFILIATES
INVESTMENT ADVISORY FEE--Riggs Investment Management Corp., the Trust's
investment adviser (the "Adviser"), receives for its services an annual
investment advisory fee based on a percentage of each Fund's average daily net
assets (see below). The Adviser may voluntarily choose to waive a portion of its
fee. The Adviser can modify or terminate this voluntary waiver at any time at
its sole discretion.
RIMCO MONUMENT FUNDS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FUND ANNUAL RATE
<S> <C>
Prime Fund 0.50%
- -------------------------------------------------------------------------------------------------
Treasury Fund 0.50%
- -------------------------------------------------------------------------------------------------
Bond Fund 0.75%
- -------------------------------------------------------------------------------------------------
Stock Fund 0.75%
- -------------------------------------------------------------------------------------------------
</TABLE>
ADMINISTRATIVE FEE--Federated Administrative Services ("FAS") provides the Trust
with certain administrative personnel and services. The FAS fee is based on the
level of average aggregate net assets of the Trust for the period. FAS may
voluntarily choose to waive a portion of its fee.
TRANSFER AND DIVIDEND DISBURSING AGENT, ACCOUNTING AND CUSTODY FEES--Federated
Services Company ("FServ") serves as transfer and dividend disbursing agent for
the Trust. The FServ fee is based on the size, type, and number of accounts and
transactions made by shareholders.
FServ also maintains the Trust's accounting records. The fee is based on the
level of each Fund's average net assets for the period, plus out-of-pocket
expenses.
Riggs National Bank is the Trust's custodian. The fee is based on the level of
each Fund's average net assets for the period, plus out-of-pocket expenses.
ORGANIZATIONAL EXPENSES--Organizational expenses of Treasury Fund, Bond Fund,
and Stock Fund of $50,507, $29,704, and $30,877, respectively, were borne
initially by FAS. The Funds have agreed to reimburse FAS during the five-year
period following the date the Trust's registration statement became effective.
For the six months ended October 31, 1994, Treasury Fund, Bond Fund, and Stock
Fund paid $2,424, $3,630, and $3,774, respectively, pursuant to this agreement.
Certain of the Officers and Trustees of the Trust are Officers and Directors or
Trustees of the above companies.
(5) INVESTMENT TRANSACTIONS
Purchases and sales of investments, excluding short-term obligations, for the
six months ended October 31, 1994, were as follows:
<TABLE>
<CAPTION>
PURCHASES SALES
<S> <C> <C>
BOND FUND $79,641,567 $ 75,452,903
- ---------------------------------------------------------------------------------- ------------- --------------
STOCK FUND $13,973,708 $ 15,692,204
- ---------------------------------------------------------------------------------- ------------- --------------
</TABLE>
TRUSTEES OFFICERS
- --------------------------------------------------------------------------------
John F. Donahue John F. Donahue
John T. Conroy, Jr. Chairman
William J. Copeland Edward C. Gonzales
James E. Dowd President and Treasurer
Lawrence D. Ellis, M.D. Jeffrey W. Sterling
Edward L. Flaherty, Jr. Vice President and Assistant Treasurer
Edward C. Gonzales J. Christopher Donahue
Peter E. Madden Vice President
Gregor F. Meyer Richard B. Fisher
Wesley W. Posvar Vice President
Marjorie P. Smuts John W. McGonigle
Vice President and Secretary
David M. Taylor
Assistant Treasurer
Jay S. Neuman
Assistant Secretary
Mutual funds are not bank deposits or obligations, are not guaranteed
by any bank, and are not insured or guaranteed by the U.S. government, the
Federal Deposit Insurance Corporation, the Federal Reserve Board, or any other
government agency. Investment in mutual funds involves investment risk,
including possible loss of principal. Although money market funds seek to
maintain a stable net asset value of $1.00 per share, there is no assurance that
they will be able to do so.
This report is authorized for distribution to prospective investors only when
preceded or accompanied by the Trust's prospectus which contains facts
concerning its objective and policies, management fees, expenses and other
information.
