PRESIDENT'S MESSAGE
- --------------------------------------------------------------------------------
Dear Shareholder:
I am pleased to present the Annual Report to Shareholders for the RIMCO Monument
Funds. This report contains a complete listing of holdings and financial
information for your investment from May 1, 1995 through April 30, 1996.
Please note the following highlights for each fund over the 12-month period:
RIMCO MONUMENT U.S. TREASURY MONEY MARKET FUND
This extremely high-quality portfolio of U.S. Treasury money market securities
paid total dividends of $0.05 per share. Net assets in the fund increased by
more than $20 million to reach $107 million at the period's end.*
RIMCO MONUMENT PRIME MONEY MARKET FUND
The fund's portfolio of high-quality money market securities paid total
dividends of $0.05 per share for Class A Shares. The fund's Class B Shares, a
new share class that began operation on December 12, 1995, paid total dividends
of $0.02 per share. Net assets in the fund increased from $284 million to $367.8
million.*
RIMCO MONUMENT BOND FUND
The fund's diversified portfolio of U.S. government and corporate bonds paid
healthy dividends totaling $0.59 per share. The net asset value rose by $0.12 to
reach $9.47 on the last day of the period. Through dividends and growth in share
price, for the year ended April 30,1996, the fund achieved a total return of
7.60% based on net asset value, and 2.45% reflecting the fund's sales charge.**
On the last day of the period, 58.3% of the fund's $50.9 million in assets were
invested in U.S. Treasury securities, with the remainder invested across
corporate bonds (17.6%), U.S. government agency securities (16.6%), and
repurchase agreements (4.3%).
RIMCO MONUMENT STOCK FUND
In an extremely favorable stock market environment, RIMCO Monument Stock Fund
rewarded investors with very strong performance. The fund's portfolio of
high-quality stocks -- including many household names -- delivered a total
return of 33.73% based on net asset value, and 26.08% reflecting the fund's
sales charge.** Impacting the total return were $0.18 per share in dividends,
$0.85 per share in capital gains, and a 25% increase in net asset value. Net
assets reached $84.8 million at the end of the period.
* Although money market funds seek to maintain a stable net asset value of
$1.00 per share, there is no assurance they will be able to do so. An
investment in the fund is neither insured nor guaranteed by the U.S.
government.
** Performance quoted represents past performance and is not indicative of
future results. Investment return and principal value will fluctuate so that
an investor's shares, when redeemed, may be worth more or less than their
original cost.
RIMCO MONUMENT SMALL CAPITALIZATION EQUITY FUND
Small-company stocks also performed extremely well during the year. As a
result, RIMCO Monument Small Capitalization Equity Fund's carefully
researched portfolio of small-company stocks produced a total return of
39.43% based on net asset value, and 31.37% reflecting the fund's sales
charge.** Contributing to this total return were $0.36 per share in
distributions, and a very sizable 35% increase in net asset value. Net assets
reached $19.3 million at the end of the period for this relatively new
addition to the RIMCO Monument family, which began operation in February
1995.
Thank you for selecting the RIMCO Monument Funds to pursue your financial
goals. We'll continue to keep you up-to-date on your investment progress as
we provide your account with the highest level of personal service.
Sincerely,
LOGO
Edward C. Gonzales
President
June 15, 1996
** Performance quoted represents past performance and is not indicative of
future results. Investment return and principal value will fluctuate so
that an investor's shares, when redeemed, may be worth more or less than
their original cost.
INVESTMENT REVIEW
- --------------------------------------------------------------------------------
RIMCO MONUMENT U.S. TREASURY MONEY MARKET FUND ("TREASURY FUND")
RIMCO MONUMENT PRIME MONEY MARKET FUND ("PRIME FUND")
For the fiscal year ended April 30, 1996, the Prime Fund and the Treasury Fund
both generated competitive total returns of 5.50% and 5.28%, respectively.*
Since the beginning of the fiscal year, the short-term fixed income market has
witnessed the yield on the one-year bill decline from a high of 6.30% on May 1,
1995, to a low of 4.78% on February 13, 1996, and rise back to 5.63% during
April 1996. By the fall of 1995, it was unclear whether the Federal Reserve
Board's ("Fed") shift to an easing mode was soon enough to avoid a recession.
During the winter of 1995-96, we were unexpectedly met with abnormal
circumstances, such as the Federal government shutdown and the Blizzard of '96.
These extraordinary conditions put the notion of recession into the minds' of
fixed income market participants. This mentality stuck with the market until the
snow melted and government workers returned to their jobs.
In early March, the first of several relatively strong employment reports were
released, indicating respectable job growth. In addition, the housing market
continues to prosper, perhaps in an attempt to capture lower mortgage rates
before the uptick in levels increases. Consumers are back in the retail market,
particularly women's apparel and overall durable goods. The fixed income markets
have reacted by sending the yield on the year bill back up to prior year levels
at 5.68%. The Fed has backed away from its stimulative monetary policy stance
and may be poised to make a policy shift to a restrictive stance. The Fed moved
last on January 31, 1996, by decreasing short term interest rates by 25 basis
points. We do not anticipate a move by the Fed in the near future. Rising
consumer debt levels (which will temper consumer spending), slower planned
capital spending, and low inflation data should keep the Fed at bay for the next
quarter.
Looking forward to 1997, we remain neutral on short-term fixed income strategy.
We continue to hedge against rising rates by investing a considerable portion of
the Prime Fund in floating rate instruments, such as T-bill and LIBOR floaters.
In the Treasury Fund, we maintain slightly longer days-to-maturity than our
bogie to capture the higher yield levels that exist past the six-month sector.
RIMCO MONUMENT BOND FUND ("BOND FUND")
The fiscal year ending April 30, 1996, resulted with the Bond Fund generating a
total return of 7.60% based upon net asset value and a total return of 2.45%
assuming the 4.75% sales charge.* During this period there was a marked
dichotomy in the fixed income markets as the initial bullishness during 1995
quickly changed to bearish during the beginning of 1996. The bullish phase of
this fiscal year saw the rates on long Treasury Bonds fall to 5.95%,
representing yield levels nearing three year lows. However, the market rally
collapsed during the first quarter of 1996, catalyzed by Federal Reserve
Chairman Alan Greenspan's Humphrey Hawkins testimony and a strong February
employment number. From the beginning of February 1996 to the end of the fiscal
year, the long Treasury Bond increased its yield to the 6.90% level, the
approximate level where it presently rests.
The Bond Fund's duration is currently even with that of the Lehman Aggregate
Bond Index.+ The economy is projected to grow at slightly less than 3% during
the current quarter, and then slow down to a 2% growth level during the second
half of the year. Inflation is expected to remain around the 3% levels, but the
uncertainty regarding price levels is likely to increase the volatility of the
bond market. These factors
* Performance quoted represents past performance and is not indicative of future
results. Investment return and principal value will fluctuate so that an
investor's shares, when redeemed, may be worth more or less than their
original cost.
+ The Lehman Brothers Aggregate Bond Index is an unmanaged total return index
measuring both the capital price changes and income provided by the underlying
universe of securities, weighted by market value outstanding.
INVESTMENT REVIEW
- --------------------------------------------------------------------------------
combined with the fear that the Fed will raise rates later in the year has
negatively impacted the overall psychology of the market.
Going forward into the later stages of 1996 and early 1997, our short-term
outlook on the bond market is neutral. However, if the economy continues to
expand at a moderate rate with modest inflation, the market could be more
favorable.
RIMCO MONUMENT STOCK FUND ("STOCK FUND")
RIMCO MONUMENT SMALL CAPITALIZATION EQUITY FUND ("SMALL CAPITALIZATION FUND")
The RIMCO Monument Stock Fund had a great year. For the year ended April 30,
1996, the Stock Fund generated a total return of 33.73% based on net asset value
and a total return of 26.08% assuming the 5.75% sales charge.* The Fund
generated superior performance relative to the Standard & Poor's 500 Index+
which rose 30.2% during the same period.
The RIMCO Monument Small Capitalization Equity Fund finished its first year on a
high note. The Fund generated a total return of 39.43% based on net asset value
and a total return of 31.37% assuming the 5.75% sales charge.* This performance
compares impressively against the Russell 2000 Index++ which rose 33.0%.
Our investment philosophy in managing both funds is to balance long term
valuation with the catalyst of short term earnings momentum. We employ our
methodology which we call value/momentum by focusing on four key factors: (1)
relative value; (2) earnings growth relative to the price-to-earnings multiple;
(3) earnings estimate revisions; and (4) relative price strength. For stocks
scoring highly in this process, we focus on the fundamental changes that
management is implementing within these companies to generate earnings growth.
We then choose to invest in those companies where we have the most confidence in
management.
Over the year we were able to invest in a broadly diversified group of stocks.
Examples of core holdings in the Stock Fund that were propelled by superior
earnings growth include: CISCO Systems up 135%; Pfizer, Inc. up 55%; Safeway,
Inc. up 72%; and Citicorp up 63%.
In the Small Capitalization Fund, Finance and Technology in particular benefited
from accelerating earnings growth; however, we have kept our investments broadly
diversified across all economic sectors. Superior core investments included: The
Money Store up 240%; Cable Design up 138%; Wakenhut Corrections up 102%; and
Pride Petroleum up 86%.
This past year has been one of the best years for common stock investment.
Moderate economic growth combined with low inflation is an environment where
equity investments can flourish. Global changes have made competition ever more
intense and have provided opportunities for companies with superior management
to prosper. The surprise we have seen in the markets is that corporate profit
growth has remained healthy and exceeded expectations. While we are encouraged
going forward, we believe the earnings growth trend could decelerate over the
next year.
By seeking out companies whose stocks display both value and momentum
characteristics, we try to provide shareholders with consistently superior
returns. We believe that our disciplined focus on undervalued companies with
solid earnings growth will continue to reward our shareholders in the future.
* Performance quoted represents past performance and is not indicative of
future results. Investment return and principal value will fluctuate so that
an investor's shares, when redeemed, may be worth more or less than their
original cost.
+ The Standard & Poor's 500 Index is an unmanaged index of common stocks in
industry, transportation and financial and public utility companies. Actual
investments may not be made in an index.
++ The Russell 2000 Index is an unmanaged index consisting of approximately 200
small capitalization stocks. Actual investments may not be made in an index.
RIMCO MONUMENT BOND FUND
- --------------------------------------------------------------------------------
GROWTH OF $10,000 INVESTED IN RIMCO MONUMENT BOND FUND
The graph below illustrates the hypothetical investment of $10,000 in the
RIMCO Monument Bond Fund (the "Fund") from May 11, 1992 (start of performance)
to April 30, 1996, compared to the Lehman Brothers Govt./Corp. Total Index.+
Graphic representation `A'' omitted. See Appendix.
AVERAGE ANNUAL TOTAL RETURN** FOR THE
PERIOD ENDED APRIL 30, 1996
1 Year.............................................................. 2.45%
Start of Performance (05/11/92)..................................... 5.34%
PAST PERFORMANCE IS NOT PREDICTIVE OF FUTURE PERFORMANCE. YOUR INVESTMENT RETURN
AND PRINCIPAL VALUE WILL FLUCTUATE SO WHEN SHARES ARE REDEEMED, THEY MAY BE
WORTH MORE OR LESS THAN ORIGINAL COST. MUTUAL FUNDS ARE NOT OBLIGATIONS OF OR
GUARANTEED BY ANY BANK AND ARE NOT FEDERALLY INSURED.
* Represents a hypothetical investment of $10,000 in the Fund after deducting
the maximum sales charge of 3.50% ($10,000 investment minus $350 sales charge
= $9,650). The Fund's performance assumes the reinvestment of all dividends
and distributions. The Lehman Brothers Govt./Corp. Total Index has been
adjusted to reflect reinvestment of dividends on securities in the index.
Effective December 18, 1995 the maximum sales charge increased to 4.75%.
** Total return quoted reflects all applicable sales charges.
+ The Lehman Brothers Govt./Corp. Total Index is not adjusted to reflect sales
loads, expenses, or other fees that the SEC requires to be reflected in the
Fund's performance. This index is unmanaged.
RIMCO MONUMENT STOCK FUND
- --------------------------------------------------------------------------------
GROWTH OF $10,000 INVESTED IN RIMCO MONUMENT STOCK FUND
The graph below illustrates the hypothetical investment of $10,000 in the
RIMCO Monument Stock Fund (the "Fund") from May 11, 1992 to April 30, 1996
compared to the Standard & Poor's 500 Index.+
Graphic representation `B'' omitted. See Appendix.
AVERAGE ANNUAL TOTAL RETURN** FOR THE
PERIOD ENDED APRIL 30, 1996
1 Year............................................................. 26.08%
Start of Performance (05/11/92).................................... 15.47%
PAST PERFORMANCE IS NOT PREDICTIVE OF FUTURE PERFORMANCE. YOUR INVESTMENT RETURN
AND PRINCIPAL VALUE WILL FLUCTUATE SO WHEN SHARES ARE REDEEMED, THEY MAY BE
WORTH MORE OR LESS THAN ORIGINAL COST. MUTUAL FUNDS ARE NOT OBLIGATIONS OF OR
GUARANTEED BY ANY BANK AND ARE NOT FEDERALLY INSURED.
* Represents a hypothetical investment of $10,000 in the Fund after deducting
the maximum sales charge of 3.50% ($10,000 investment minus $350 sales charge
= $9,650). The Fund's performance assumes the reinvestment of all dividends
and distributions. The Standard & Poor's 500 Index has been adjusted to
reflect reinvestment of dividends on securities in the index. Effective
December 18, 1995 the maximum sales charge increased to 5.75%.
** Total return quoted reflects all applicable sales charges.
+ The Standard & Poor's 500 Index is not adjusted to reflect sales loads,
expenses, or other fees that the SEC requires to be reflected in the Fund's
performance. This index is unmanaged.
RIMCO MONUMENT SMALL CAPITALIZATION EQUITY FUND
- --------------------------------------------------------------------------------
GROWTH OF $10,000 INVESTED IN RIMCO MONUMENT SMALL CAPITALIZATION EQUITY FUND
The graph below illustrates the hypothetical investment of $10,000 in the
RIMCO Monument Small Capitalization Equity Fund (the "Fund") from February 27,
1995 (start of performance) to April 30, 1996 compared to the Russell 2000
Index.+
Graphic representation `C'' omitted. See Appendix.
AVERAGE ANNUAL TOTAL RETURN** FOR THE
PERIOD ENDED APRIL 30, 1996
1 Year.............................................................. 31.37%
Start of Performance (February 27, 1995)............................ 30.81%
PAST PERFORMANCE IS NOT PREDICTIVE OF FUTURE PERFORMANCE. YOUR INVESTMENT RETURN
AND PRINCIPAL VALUE WILL FLUCTUATE SO WHEN SHARES ARE REDEEMED, THEY MAY BE
WORTH MORE OR LESS THAN ORIGINAL COST. MUTUAL FUNDS ARE NOT OBLIGATIONS OF OR
GUARANTEED BY ANY BANK AND ARE NOT FEDERALLY INSURED.
* Represents a hypothetical investment of $10,000 in the Fund after deducting
the maximum sales charge of 3.50% ($10,000 investment minus $350 sales charge
= $9,650). The Fund's performance assumes the reinvestment of all dividends
and distributions. The Russell 2000 has been adjusted to reflect reinvestment
of dividends on securities in the index. Effective December 18, 1995 the
maximum sales charge increased to 5.75%.
** Total return quoted reflects all applicable sales charges.
+ The Russell 2000 Index is not adjusted to reflect sales loads, expenses, or
other fees that the SEC requires to be reflected in the Fund's performance.
This index is unmanaged.
RIMCO MONUMENT U.S. TREASURY MONEY MARKET FUND
PORTFOLIO OF INVESTMENTS
APRIL 30, 1996
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
- ----------- ----------------------------------------------------------------- ------------
<C> <C> <S> <C>
UNITED STATES TREASURY OBLIGATIONS--62.6%
- ----------------------------------------------------------------------------------
U.S. TREASURY BILLS--48.6%
-----------------------------------------------------------------
$53,000,000 5/2/1996-4/3/1997 $ 52,038,426
-----------------------------------------------------------------
U.S. TREASURY NOTES--14.0%
-----------------------------------------------------------------
15,000,000 4.25%-6.25%, 5/15/1996-8/31/1996 15,013,397
----------------------------------------------------------------- ------------
TOTAL UNITED STATES TREASURY OBLIGATIONS 67,051,823
----------------------------------------------------------------- ------------
(A) REPURCHASE AGREEMENTS--37.5%
- ----------------------------------------------------------------------------------
20,080,000 Citicorp Securities Markets, Inc., 5.28%, dated 4/30/1996, due
5/1/1996 20,080,000
-----------------------------------------------------------------
20,081,000 Donaldson, Lufkin and Jenrette Securities Corp., 5.30%, dated
4/30/1996, due 5/1/1996 20,081,000
----------------------------------------------------------------- ------------
TOTAL REPURCHASE AGREEMENTS 40,161,000
----------------------------------------------------------------- ------------
TOTAL INVESTMENTS (AT AMORTIZED COST)(B) $107,212,823
----------------------------------------------------------------- ------------
</TABLE>
(a) The repurchase agreements are fully collateralized by U.S. Treasury
obligations based on market prices at the date of the portfolio.
(b) Also represents cost for federal tax purposes.
Note: The categories of investments are shown as a percentage of net assets
($107,103,642) at April 30, 1996.
(See Notes which are an integral part of the Financial Statements)
RIMCO MONUMENT U.S. TREASURY MONEY MARKET FUND
STATEMENT OF ASSETS AND LIABILITIES
APRIL 30, 1996
- --------------------------------------------------------------------------------
<TABLE>
<S> <C> <C>
ASSETS:
- ------------------------------------------------------------------
Investments in repurchase agreements $40,161,000
- ------------------------------------------------------------------
Investments in securities 67,051,823
- ------------------------------------------------------------------ -----------
Total investments in securities, at amortized cost and value $107,212,823
- --------------------------------------------------------------------------------
Cash 914
- --------------------------------------------------------------------------------
Income receivable 279,425
- --------------------------------------------------------------------------------
Deferred expenses 1,040
- -------------------------------------------------------------------------------- ------------
Total assets 107,494,202
- --------------------------------------------------------------------------------
LIABILITIES:
- --------------------------------------------------------------------------------
Income distribution payable 357,867
- ------------------------------------------------------------------
Accrued expenses 32,693
- ------------------------------------------------------------------ -----------
Total liabilities 390,560
- -------------------------------------------------------------------------------- ------------
NET ASSETS for 107,103,642 shares outstanding $107,103,642
- -------------------------------------------------------------------------------- ------------
NET ASSET VALUE, Offering Price and Redemption Proceeds Per Share:
$107,103,642 / 107,103,642 shares 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
YEAR ENDED APRIL 30, 1996
- --------------------------------------------------------------------------------
<TABLE>
<S> <C> <C>
INVESTMENT INCOME:
- ---------------------------------------------------------------------------------
Interest $5,582,550
- ---------------------------------------------------------------------------------
EXPENSES:
- ---------------------------------------------------------------------------------
Investment advisory fee $ 484,117
- ---------------------------------------------------------------------
Administrative personnel and services fee 128,886
- ---------------------------------------------------------------------
Transfer and dividend disbursing agent fees and expenses 30,741
- ---------------------------------------------------------------------
Directors'/Trustees' fees 1,449
- ---------------------------------------------------------------------
Auditing fees 14,034
- ---------------------------------------------------------------------
Legal fees 6,573
- ---------------------------------------------------------------------
Portfolio accounting fees 39,601
- ---------------------------------------------------------------------
Share registration costs 20,492
- ---------------------------------------------------------------------
Printing and postage 14,796
- ---------------------------------------------------------------------
Insurance premiums 4,474
- ---------------------------------------------------------------------
Miscellaneous 8,993
- --------------------------------------------------------------------- ---------
Total expenses 754,156
- ---------------------------------------------------------------------
Waiver of investment advisory fee (174,327)
- --------------------------------------------------------------------- ---------
Net expenses 579,829
- --------------------------------------------------------------------------------- ----------
Net investment income $5,002,721
- --------------------------------------------------------------------------------- ----------
</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,
-------------------------------
1996 1995
------------- -------------
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
- --------------------------------------------------------------
OPERATIONS--
- --------------------------------------------------------------
Net investment income $ 5,002,721 $ 4,079,991
- -------------------------------------------------------------- ------------- -------------
DISTRIBUTIONS TO SHAREHOLDERS--
- --------------------------------------------------------------
Distributions from net investment income (5,002,721) (4,079,991)
- -------------------------------------------------------------- ------------- -------------
SHARE TRANSACTIONS--
- --------------------------------------------------------------
Proceeds from sale of shares 436,204,901 375,221,400
- --------------------------------------------------------------
Net asset value of shares issued to shareholders in payment of
distributions declared 773,387 446,947
- --------------------------------------------------------------
Cost of shares redeemed (410,963,751) (401,527,266)
- -------------------------------------------------------------- ------------- -------------
Change in net assets resulting from share transactions 26,014,537 (25,858,919)
- -------------------------------------------------------------- ------------- -------------
Change in net assets 26,014,537 (25,858,919)
- --------------------------------------------------------------
NET ASSETS:
- --------------------------------------------------------------
Beginning of period 81,089,105 106,948,024
- -------------------------------------------------------------- ------------- -------------
End of period $ 107,103,642 $ 81,089,105
- -------------------------------------------------------------- ------------- -------------
</TABLE>
(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,
---------------------------------------------
1996 1995 1994 1993 1992(A)
----- ----- ----- ----- -----
<S> <C> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD $1.00 $1.00 $1.00 $1.00 $1.00
- -------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS
- -------------------------------------------------
Net investment income 0.05 0.04 0.03 0.03 0.02
- ------------------------------------------------- ----- ----- ----- ----- -----
LESS DISTRIBUTIONS
- -------------------------------------------------
Distributions from net investment income (0.05) (0.04) (0.03) (0.03) (0.02)
- ------------------------------------------------- ----- ----- ----- ----- -----
NET ASSET VALUE, END OF PERIOD $1.00 $1.00 $1.00 $1.00 $1.00
- ------------------------------------------------- ----- ----- ----- ----- -----
TOTAL RETURN (b) 5.28% 4.39% 2.64% 2.92% 2.37%
- -------------------------------------------------
RATIOS TO AVERAGE NET ASSETS
- -------------------------------------------------
Expenses 0.60% 0.60% 0.56% 0.52% 0.41%(c)
- -------------------------------------------------
Net investment income 5.17% 4.33% 2.61% 2.86% 4.08%(c)
- -------------------------------------------------
Expense waiver/reimbursement (d) 0.18% 0.20% 0.16% 0.29% 0.42%(c)
- -------------------------------------------------
SUPPLEMENTAL DATA
- -------------------------------------------------
Net assets, end of period (000 omitted) $107,104 $81,089 $106,948 $86,875 $51,039
- -------------------------------------------------
</TABLE>
(a) Reflects operations for the period from October 8, 1991 (date of initial
public investment) to April 30, 1992.
(b) Based on net asset value, which does not reflect the sales load or
contingent deferred sales charge, if applicable.
(c) Computed on an annualized basis.
(d) This voluntary expense decrease is reflected in both the expense and net
investment income ratios shown above.
(See Notes which are an integral part of the Financial Statements)
RIMCO MONUMENT PRIME MONEY MARKET FUND
PORTFOLIO OF INVESTMENTS
APRIL 30, 1996
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
- ----------- ---------------------------------------------------------------- ------------
<C> <C> <S> <C>
CERTIFICATE OF DEPOSITS--5.4%
- -----------------------------------------------------------------------------------
$ 5,000,000 Deutsche Bank, AG, 5.31%, 9/13/1996 $ 4,999,366
----------------------------------------------------------------
15,000,000 Societe Generale, New York, 5.20%-5.35%, 5/6/1996-6/3/1996 15,000,000
---------------------------------------------------------------- ------------
Total 19,999,366
---------------------------------------------------------------- ------------
*COMMERCIAL PAPER--14.2%
- -----------------------------------------------------------------------------------
ELECTRONIC TECHNOLOGY--5.4%
----------------------------------------------------------------
20,000,000 International Business Machines Corp., 5.31%-5.34%,
5/3/1996-5/6/1996 19,990,117
---------------------------------------------------------------- ------------
FINANCE--2.7%
----------------------------------------------------------------
10,000,000 Household Finance Corp., 5.26%, 5/24/1996 9,966,969
---------------------------------------------------------------- ------------
FINANCE-AUTOMOTIVE--2.0%
----------------------------------------------------------------
7,500,000 Chrysler Financial Corp., 5.32%, 5/17/1996 7,482,267
---------------------------------------------------------------- ------------
FINANCE-EQUIPMENT--1.3%
----------------------------------------------------------------
5,000,000 International Lease Finance Corp., 5.28%, 6/6/1996 4,973,600
---------------------------------------------------------------- ------------
FINANCE-RETAIL--1.4%
----------------------------------------------------------------
5,000,000 Sears Roebuck Acceptance Corp., 5.17%, 5/17/1996 4,988,511
---------------------------------------------------------------- ------------
FOOD & BEVERAGE--1.4%
----------------------------------------------------------------
5,000,000 American Home (Foods), Subsidiary, 5.36%, 5/22/1996 4,984,367
---------------------------------------------------------------- ------------
TOTAL COMMERCIAL PAPER 52,385,831
---------------------------------------------------------------- ------------
CORPORATE BONDS--54.6%
- -----------------------------------------------------------------------------------
BANKING--14.1%
----------------------------------------------------------------
5,000,000 American Express Centurion Bank, 5.47%, 5/14/1996 5,000,000
----------------------------------------------------------------
10,000,000 Bank One, Milwaukee, WI N.A., 5.28%, 5/1/1996 9,997,528
----------------------------------------------------------------
500,000 BankAmerica Corp., 7.50%, 3/15/1997 507,548
----------------------------------------------------------------
10,000,000 Boatmen's National Bank of St. Louis, 5.445%, 5/20/1996 10,000,000
----------------------------------------------------------------
1,320,000 Chemical Banking Corp., 5.45%-5.638%, 5/19/1996-7/29/1996 1,320,569
----------------------------------------------------------------
200,000 Deutsche Bank Financial, Inc., 8.80%, 1/15/1997 204,440
----------------------------------------------------------------
</TABLE>
RIMCO MONUMENT PRIME MONEY MARKET FUND
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
------------
<C> <C> <S> <C>
CORPORATE BONDS--CONTINUED
- -----------------------------------------------------------------------------------
$ 5,000,000 First Bank, 5.468%, 9/18/1996 $ 5,000,000
----------------------------------------------------------------
2,000,000 NBD Bank, Michigan, 4.60%, 2/3/1997 1,985,035
----------------------------------------------------------------
8,000,000 NationsBank Corp., 4.75%, 8/15/1996 7,981,741
----------------------------------------------------------------
10,000,000 SouthTrust Bank of Georgia, Atlanta, 5.408%, 5/10/1996 9,999,023
---------------------------------------------------------------- ------------
Total 51,995,884
---------------------------------------------------------------- ------------
CONSUMER NON-DURABLES--0.3%
----------------------------------------------------------------
990,000 Philip Morris Cos., Inc., 8.75%-8.875%, 7/1/1996-12/1/1996 1,006,886
---------------------------------------------------------------- ------------
ELECTRONIC TECHNOLOGY--0.7%
----------------------------------------------------------------
2,500,000 Northern Telecom Ltd., 8.25%, 6/13/1996 2,506,676
---------------------------------------------------------------- ------------
FINANCE--12.5%
----------------------------------------------------------------
2,095,000 American Express Co., 8.75%, 6/15/1996 2,101,822
----------------------------------------------------------------
200,000 American Express Credit Corp., 7.875%, 12/1/1996 202,619
----------------------------------------------------------------
1,000,000 American General Finance Corp., 5.80%, 4/1/1997 1,001,771
----------------------------------------------------------------
1,150,000 Associates Corp. of North America, 6.875%-8.70%,
1/1/1997-1/15/1997 1,170,904
----------------------------------------------------------------
2,000,000 Avco Financial Services, Inc., 7.50%, 11/15/1996 2,022,339
----------------------------------------------------------------
13,000,000 Beneficial Corp., 5.53%-8.70%, 5/1/1996-10/28/1996 13,026,622
----------------------------------------------------------------
200,000 Citicorp, 8.25%, 2/13/1997 203,656
----------------------------------------------------------------
500,000 First Bank System, Inc., 5.538%, 5/15/1996 500,020
----------------------------------------------------------------
4,000,000 First Chicago Corp., 7.65%, 2/14/1997 4,059,190
----------------------------------------------------------------
7,000,000 Fleet Mortgage Group, Inc., 5.388%-5.788%, 5/28/1996-6/18/1996 6,999,975
----------------------------------------------------------------
3,400,000 General Electric Capital Corp., 4.70%, 11/19/1996 3,386,599
----------------------------------------------------------------
2,800,000 Household Finance Corp., 5.35%-10.125%, 5/17/1996-12/15/1996 2,818,111
----------------------------------------------------------------
300,000 IBM Credit Corp., 4.92%, 8/30/1996 299,061
----------------------------------------------------------------
3,000,000 NCNB Corp., 8.50%, 11/1/1996 3,042,429
----------------------------------------------------------------
5,000,000 PHH Corp., 5.343%, 5/21/1996 4,999,554
----------------------------------------------------------------
250,000 TransAmerica Finance Corp., 5.85%, 7/15/1996 250,136
---------------------------------------------------------------- ------------
Total 46,084,808
---------------------------------------------------------------- ------------
</TABLE>
RIMCO MONUMENT PRIME MONEY MARKET FUND
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
------------
<C> <C> <S> <C>
CORPORATE BONDS--CONTINUED
- -----------------------------------------------------------------------------------
FINANCE-AUTOMOTIVE--8.9%
----------------------------------------------------------------
$ 5,000,000 Chrysler Financial Corp., 7.63%, 2/24/1997 $ 5,074,261
----------------------------------------------------------------
215,000 Ford Capital BV, 9.00%, 6/1/1996 215,506
----------------------------------------------------------------
10,950,000 Ford Motor Credit Corp., 5.41%-9.30%, 5/15/1996-3/14/1997 11,048,771
----------------------------------------------------------------
16,250,000 General Motors Acceptance Corp., 5.30%-9.00%, 5/7/1996-4/18/1997 16,334,530
---------------------------------------------------------------- ------------
Total 32,673,068
---------------------------------------------------------------- ------------
FINANCE-EQUIPMENT--7.9%
----------------------------------------------------------------
1,500,000 Deere (John) Capital Corp., 7.47%, 4/14/1997 1,524,943
----------------------------------------------------------------
16,750,000 General Electric Capital Corp., 5.27%-7.85%, 5/24/1996-1/17/1997 16,776,254
----------------------------------------------------------------
10,650,000 International Lease Finance Corp., 4.75%-8.69%,
7/15/1996-4/1/1997 10,660,580
---------------------------------------------------------------- ------------
Total 28,961,777
---------------------------------------------------------------- ------------
FINANCE-INSURANCE--2.7%
----------------------------------------------------------------
10,000,000 Allstate Life Insurance Co., GIC, 5.497%, 5/1/1996 10,000,000
---------------------------------------------------------------- ------------
FINANCE-RETAIL--1.0%
----------------------------------------------------------------
3,614,000 Sears, Roebuck & Co., 9.00%, 9/15/1996 3,653,156
---------------------------------------------------------------- ------------
FOOD & BEVERAGE--0.1%
----------------------------------------------------------------
250,000 PepsiCo, Inc., 4.60%, 6/30/1996 249,589
---------------------------------------------------------------- ------------
HEALTH TECHNOLOGY--1.2%
----------------------------------------------------------------
4,550,000 American Home Products Corp., 6.875%, 4/15/1997 4,596,491
---------------------------------------------------------------- ------------
INDUSTRIAL SERVICES--3.7%
----------------------------------------------------------------
10,660,000 WMX Technologies, Inc., 4.875%, 6/15/1996 10,654,821
----------------------------------------------------------------
3,000,000 Waste Management, Inc., 7.875%, 8/15/1996 3,017,846
---------------------------------------------------------------- ------------
Total 13,672,667
---------------------------------------------------------------- ------------
MANUFACTURING--0.2%
----------------------------------------------------------------
800,000 Deere & Co., 8.25%, 6/1/1996 801,500
---------------------------------------------------------------- ------------
RETAIL--1.3%
----------------------------------------------------------------
4,610,000 Sears, Roebuck & Co., 5.25%-8.98%, 7/11/1996-2/24/1997 4,626,293
---------------------------------------------------------------- ------------
TOTAL CORPORATE BONDS 200,828,795
---------------------------------------------------------------- ------------
</TABLE>
RIMCO MONUMENT PRIME MONEY MARKET FUND
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
------------
<C> <C> <S> <C>
GOVERNMENT AGENCIES--22.7%
- -----------------------------------------------------------------------------------
** FEDERAL HOME LOAN BANK--6.5%
----------------------------------------------------------------
$23,900,000 5.09-5.694%, 5/14/1996-3/27/1997 $ 23,900,000
---------------------------------------------------------------- ------------
** FEDERAL HOME LOAN MORTGAGE CORPORATION--1.3%
----------------------------------------------------------------
5,000,000 5.50%, 6/3/1996 5,000,834
---------------------------------------------------------------- ------------
** STUDENT LOAN MARKETING ASSOCIATION--14.9%
----------------------------------------------------------------
54,705,000 5.30%-5.58%, 5/7/1996 54,685,966
---------------------------------------------------------------- ------------
TOTAL GOVERNMENT AGENCIES 83,586,800
---------------------------------------------------------------- ------------
UNITED STATES TREASURY OBLIGATIONS--0.3%
- -----------------------------------------------------------------------------------
U.S. TREASURY NOTE
----------------------------------------------------------------
1,145,000 4.375%, 8/15/1996-11/15/1996 1,140,660
---------------------------------------------------------------- ------------
(A)REPURCHASE AGREEMENTS--2.3%
- -----------------------------------------------------------------------------------
4,142,000 Citicorp Security Markets, Inc., 5.28%, dated 4/30/1996, due
5/1/1996 4,142,000
----------------------------------------------------------------
4,142,000 Donaldson, Lufkin and Jenrette Securities Corp., 5.30%, dated
4/30/1996, due 5/1/1996 4,142,000
---------------------------------------------------------------- ------------
TOTAL REPURCHASE AGREEMENTS 8,284,000
---------------------------------------------------------------- ------------
TOTAL INVESTMENTS (AT AMORTIZED COST)(B) $366,225,452
---------------------------------------------------------------- ------------
</TABLE>
(a) The repurchase agreements are fully collateralized by the U.S. Treasury
obligations based on the market prices at the date of the portfolio.
(b) Also represents cost for federal tax purposes.
* Each issue shows the rate of discount at the time of purchase for the
discount issues, or the coupon for interest bearing issues.
** Current rate and next reset date shown.
Note: The categories of investments are shown as a percentage of net assets
($367,752,473) at April 30, 1996.
The following acronym is used in this portfolio:
GIC -- Guaranteed Investment Contract
(See Notes which are an integral part of the Financial Statements)
RIMCO MONUMENT PRIME MONEY MARKET FUND
STATEMENT OF ASSETS AND LIABILITIES
APRIL 30, 1996
- --------------------------------------------------------------------------------
<TABLE>
<S> <C> <C>
ASSETS:
- ----------------------------------------------------------------------------
Total investments in securities, at amortized cost and value $366,225,452
- ----------------------------------------------------------------------------
Cash 902
- ----------------------------------------------------------------------------
Income receivable 3,032,157
- ----------------------------------------------------------------------------
Receivable for shares sold 23,591
- ----------------------------------------------------------------------------
Deferred expenses 2,011
- ---------------------------------------------------------------------------- ------------
Total assets 369,284,113
- ----------------------------------------------------------------------------
LIABILITIES:
- ----------------------------------------------------------------------------
Payable for investments purchased $ 303,902
- --------------------------------------------------------------
Income distribution payable 1,160,464
- --------------------------------------------------------------
Accrued expenses 67,274
- -------------------------------------------------------------- ----------
Total liabilities 1,531,640
- ---------------------------------------------------------------------------- ------------
NET ASSETS for 368,040,808 shares outstanding $367,752,473
- ---------------------------------------------------------------------------- ------------
NET ASSETS CONSIST OF:
- ----------------------------------------------------------------------------
Paid in capital $368,042,464
- ----------------------------------------------------------------------------
Undistributed net investment income 583,120
- ----------------------------------------------------------------------------
Accumulated net realized loss on investments (873,111)
- ---------------------------------------------------------------------------- ------------
Total Net Assets $367,752,473
- ---------------------------------------------------------------------------- ------------
NET ASSET VALUE, Offering Price and Redemption Proceeds Per Share:
- ----------------------------------------------------------------------------
Class A Shares:
- ----------------------------------------------------------------------------
$367,742,371 / 368,030,706 shares outstanding $1.00
- ---------------------------------------------------------------------------- ------------
Class B Shares:
- ----------------------------------------------------------------------------
$10,102 / 10,102 shares outstanding $1.00
- ---------------------------------------------------------------------------- ------------
</TABLE>
(See Notes which are an integral part of the Financial Statements)
RIMCO MONUMENT PRIME MONEY MARKET FUND
STATEMENT OF OPERATIONS
YEAR ENDED APRIL 30, 1996
- --------------------------------------------------------------------------------
<TABLE>
<S> <C> <C>
INVESTMENT INCOME:
- ---------------------------------------------------------------------------------
Interest $18,972,746
- ---------------------------------------------------------------------------------
EXPENSES:
- ---------------------------------------------------------------------------------
Investment advisory fee $1,644,269
- --------------------------------------------------------------------
Administrative personnel and services fee 436,703
- --------------------------------------------------------------------
Transfer and dividend disbursing agent fees and expenses 48,142
- --------------------------------------------------------------------
Directors'/Trustees' fees 3,000
- --------------------------------------------------------------------
Auditing fees 14,050
- --------------------------------------------------------------------
Legal fees 4,000
- --------------------------------------------------------------------
Portfolio accounting fees 77,606
- --------------------------------------------------------------------
Distribution services fee -- Class B Shares 9
- --------------------------------------------------------------------
Share registration costs 61,283
- --------------------------------------------------------------------
Printing and postage 12,500
- --------------------------------------------------------------------
Insurance premiums 10,500
- --------------------------------------------------------------------
Miscellaneous 6,500
- -------------------------------------------------------------------- ----------
Total expenses 2,318,562
- --------------------------------------------------------------------
Waiver of investment advisory fee (637,538)
- -------------------------------------------------------------------- ----------
Net expenses 1,681,024
- --------------------------------------------------------------------------------- -----------
Net investment income 17,291,722
- --------------------------------------------------------------------------------- -----------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:
- ---------------------------------------------------------------------------------
Net realized gain on investments 49,887
- --------------------------------------------------------------------------------- -----------
Change in net assets resulting from operations $17,341,609
- --------------------------------------------------------------------------------- -----------
</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,
-------------------------------
1996 1995
------------- -------------
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
- -------------------------------------------------------------
OPERATIONS--
- -------------------------------------------------------------
Net investment income $ 17,291,722 $ 16,245,486
- -------------------------------------------------------------
Net realized gain (loss) on investments ($60,388 net gain and
$20,474 net loss, respectively, as computed for federal tax
purposes) 49,887 (1,138,233)
- ------------------------------------------------------------- ------------- -------------
Change in net assets resulting from operations 17,341,609 15,107,253
- ------------------------------------------------------------- ------------- -------------
DISTRIBUTIONS TO SHAREHOLDERS--
- -------------------------------------------------------------
Distributions from net investment income
- -------------------------------------------------------------
Class A Shares (17,475,829) (16,058,220)
- -------------------------------------------------------------
Class B Shares (83) --
- ------------------------------------------------------------- ------------- -------------
Change in net assets resulting from distributions to
shareholders (17,475,912) (16,058,220)
- ------------------------------------------------------------- ------------- -------------
SHARE TRANSACTIONS--
- -------------------------------------------------------------
Proceeds from sale of shares 993,944,410 830,172,533
- -------------------------------------------------------------
Net asset value of shares issued to shareholders in payment
of distributions declared 3,827,513 1,892,619
- -------------------------------------------------------------
Cost of shares redeemed (913,943,749) (883,018,651)
- ------------------------------------------------------------- ------------- -------------
Change in net assets resulting from share transactions 83,828,174 (50,953,499)
- ------------------------------------------------------------- ------------- -------------
CAPITAL CONTRIBUTION -- 1,198,029
- ------------------------------------------------------------- ------------- -------------
Change in net assets 83,693,871 (50,706,437)
- -------------------------------------------------------------
NET ASSETS:
- -------------------------------------------------------------
Beginning of period 284,058,602 334,765,039
- ------------------------------------------------------------- ------------- -------------
End of period (including undistributed net investment income
of $583,120 and $767,310, respectively) $ 367,752,473 $ 284,058,602
- ------------------------------------------------------------- ------------- -------------
</TABLE>
(See Notes which are an integral part of the Financial Statements)
RIMCO MONUMENT PRIME MONEY MARKET FUND
FINANCIAL HIGHLIGHTS -- CLASS A SHARES
- --------------------------------------------------------------------------------
(FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD)
<TABLE>
<CAPTION>
YEAR ENDED APRIL 30,
----------------------------------------------
1996 1995 1994 1993 1992(A)
----- ------ ----- ----- -----
<S> <C> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD $1.00 $1.00 $1.00 $1.00 $1.00
- ----------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS
- ----------------------------------------------------------
Net investment income 0.05 0.047 0.03 0.04 0.03
- ----------------------------------------------------------
Net realized loss on investments -- (0.003) -- -- --
- ---------------------------------------------------------- ----- ------ ----- ----- -----
Total from investment operations 0.05 0.044 0.03 0.04 0.03
- ----------------------------------------------------------
LESS DISTRIBUTIONS
- ----------------------------------------------------------
Distributions from net investment income (0.05) (0.047) (0.03) (0.04) (0.03)
- ----------------------------------------------------------
CAPITAL CONTRIBUTION -- 0.003 -- -- --
- ---------------------------------------------------------- ----- ------ ----- ----- -----
NET ASSET VALUE, END OF PERIOD $1.00 $1.00 $1.00 $1.00 $1.00
- ---------------------------------------------------------- ----- ------ ----- ----- -----
TOTAL RETURN (B) 5.50% 4.84%(c) 3.08% 3.55% 2.90%
- ----------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS
- ----------------------------------------------------------
Expenses 0.51% 0.44% 0.43% 0.41% 0.27%(d)
- ----------------------------------------------------------
Net investment income 5.26% 4.72% 3.02% 3.46% 4.56%(d)
- ----------------------------------------------------------
Expense waiver/reimbursement (e) 0.19% 0.24% 0.28% 0.31% 0.47%(d)
- ----------------------------------------------------------
SUPPLEMENTAL DATA
- ----------------------------------------------------------
Net assets, end of period (000 omitted) $367,742 $284,059 $334,765 $277,267 $111,329
- ----------------------------------------------------------
</TABLE>
(a) Reflects operations for the period from September 17, 1991 (date of initial
public investment) to April 30, 1992.
(b) Based on net asset value, which does not reflect the sales load or
contingent deferred sales charge, if applicable.
(c) Total return would have remained at 4.84% absent the capital contribution by
Riggs National Corp.
(d) Computed on an annualized basis.
(e) This voluntary expense decrease is reflected in both the expense and net
investment income ratios shown above.
(See Notes which are an integral part of the Financial Statements)
RIMCO MONUMENT PRIME MONEY MARKET FUND
FINANCIAL HIGHLIGHTS--CLASS B SHARES
- --------------------------------------------------------------------------------
(FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD)
<TABLE>
<CAPTION>
YEAR ENDED
APRIL 30,
1996 (A)
----------
<S> <C>
NET ASSET VALUE, BEGINNING OF PERIOD $ 1.00
- ------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS
- ------------------------------------------------------------------------------
Net investment income 0.02
- ------------------------------------------------------------------------------ --------
LESS DISTRIBUTIONS
- ------------------------------------------------------------------------------
Distributions from net investment income (0.02)
- ------------------------------------------------------------------------------ ------
NET ASSET VALUE, END OF PERIOD $ 1.00
- ------------------------------------------------------------------------------ ------
TOTAL RETURN (B) 0.74%
- ------------------------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS
- ------------------------------------------------------------------------------
Expenses 1.07%(c)
- ------------------------------------------------------------------------------
Net investment income 4.58%(c)
- ------------------------------------------------------------------------------
Expense waiver/reimbursement (d) 0.19%(c)
- ------------------------------------------------------------------------------
SUPPLEMENTAL DATA
- ------------------------------------------------------------------------------
Net assets, end of period (000 omitted) $10
- ------------------------------------------------------------------------------
</TABLE>
(a) Reflects operations for the period from December 12, 1995 (date of initial
public investment) to April 30, 1996.
(b) Based on net asset value, which does not reflect the sales load or
contingent deferred sales charge, if applicable.
(c) Computed on an annualized basis.
(d) This voluntary expense decrease is reflected in both the expense and net
investment income ratios shown above.
(See Notes which are an integral part of the Financial Statements)
RIMCO MONUMENT BOND FUND
PORTFOLIO OF INVESTMENTS
APRIL 30, 1996
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
- ---------- -------------------------------------------------------------------- -----------
<C> <C> <S> <C>
CORPORATE BONDS--17.6%
- ------------------------------------------------------------------------------------
BANKING--1.4%
--------------------------------------------------------------------
$ 645,000 BankAmerica Corp., 9.70%, 8/1/2000 $ 713,751
-------------------------------------------------------------------- -----------
FINANCE--10.9%
--------------------------------------------------------------------
480,000 Associates Corp. of North America, 7.875%, 9/30/2001 501,437
--------------------------------------------------------------------
490,000 Associates Corp. of North America, 8.80%, 8/1/1998 513,647
--------------------------------------------------------------------
342,727 Countrywide Funding Corp., PAC, REMIC, 6.75%, 3/25/2024 309,451
--------------------------------------------------------------------
1,825,000 Ford Capital BV, 9.375%, 1/1/1998 1,914,060
--------------------------------------------------------------------
360,000 GE Global Insurance, 7.00%, 2/15/2026 335,214
--------------------------------------------------------------------
880,000 General Electric Financial Services, Inc., 8.75%, 5/21/2007 983,990
--------------------------------------------------------------------
930,000 Transamerica Finance Corp., 8.75%, 10/1/1999 985,130
-------------------------------------------------------------------- -----------
Total 5,542,929
-------------------------------------------------------------------- -----------
INDUSTRIAL--0.9%
--------------------------------------------------------------------
450,000 Sysco Corp., 6.50%, 6/15/2005 433,269
-------------------------------------------------------------------- -----------
INSURANCE--1.9%
--------------------------------------------------------------------
930,000 Travelers Group, Inc., 7.75%, 6/15/1999 958,653
-------------------------------------------------------------------- -----------
TELECOMMUNICATIONS--2.5%
--------------------------------------------------------------------
1,000,000 AT&T Corp., 7.75%, 3/1/2007 1,044,490
--------------------------------------------------------------------
230,000 BellSouth Telecommunications, Inc., 6.50%, 6/15/2005 222,100
-------------------------------------------------------------------- -----------
Total 1,266,590
-------------------------------------------------------------------- -----------
TOTAL CORPORATE BONDS (IDENTIFIED COST $8,856,802) 8,915,192
-------------------------------------------------------------------- -----------
GOVERNMENT AGENCIES--16.6%
- ------------------------------------------------------------------------------------
FEDERAL FARM CREDIT BANK--1.3%
--------------------------------------------------------------------
575,000 9.20%, 8/22/2005 658,870
-------------------------------------------------------------------- -----------
FEDERAL HOME LOAN BANK--1.2%
--------------------------------------------------------------------
590,000 6.70%, 4/23/2001 587,203
-------------------------------------------------------------------- -----------
</TABLE>
RIMCO MONUMENT BOND FUND
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
- ---------- -------------------------------------------------------------------- -----------
<C> <C> <S> <C>
GOVERNMENT AGENCIES--CONTINUED
- ------------------------------------------------------------------------------------
FEDERAL HOME LOAN MORTGAGE CORPORATION--7.3%
--------------------------------------------------------------------
$1,140,000 5.00%, 10/15/2007 $ 977,550
--------------------------------------------------------------------
1,020,000 REMIC, 5.85%, 2/15/2008 960,707
--------------------------------------------------------------------
1,380,000 6.00%, 4/15/2023 1,271,808
--------------------------------------------------------------------
500,000 7.00%, 1/1/1999 482,650
-------------------------------------------------------------------- -----------
Total 3,692,715
-------------------------------------------------------------------- -----------
FEDERAL NATIONAL MORTGAGE ASSOCIATION--6.8%
--------------------------------------------------------------------
1,060,000 6.625%, 3/21/2006 1,038,090
--------------------------------------------------------------------
540,000 7.11%, 3/20/2006 528,601
--------------------------------------------------------------------
1,880,000 7.77%, 7/18/2001 1,906,640
-------------------------------------------------------------------- -----------
Total 3,473,331
-------------------------------------------------------------------- -----------
TOTAL GOVERNMENT AGENCIES (IDENTIFIED COST $8,538,983) 8,412,119
-------------------------------------------------------------------- -----------
UNITED STATES TREASURY OBLIGATIONS--58.3%
- ------------------------------------------------------------------------------------
U.S. TREASURY BONDS--14.4%
--------------------------------------------------------------------
1,410,000 12.00%, 5/15/2005 1,909,422
--------------------------------------------------------------------
90,000 6.00%, 2/15/2026 80,019
--------------------------------------------------------------------
4,195,000 6.25%, 8/15/2023 3,786,659
--------------------------------------------------------------------
760,000 6.875%, 8/15/2025 750,979
--------------------------------------------------------------------
755,000 7.25%, 5/15/2004 782,686
-------------------------------------------------------------------- -----------
Total 7,309,765
-------------------------------------------------------------------- -----------
U.S. TREASURY NOTES--43.9%
--------------------------------------------------------------------
2,000,000 5.00%, 1/31/1998 1,967,000
--------------------------------------------------------------------
530,000 5.75%, 9/30/1997 529,083
--------------------------------------------------------------------
980,000 5.875%, 6/30/2000 962,801
--------------------------------------------------------------------
490,000 5.875%, 8/15/1998 487,570
--------------------------------------------------------------------
1,100,000 6.00%, 8/31/1997 1,101,804
--------------------------------------------------------------------
270,000 6.125%, 3/31/1998 270,518
--------------------------------------------------------------------
2,100,000 6.125%, 5/31/1997 2,108,316
--------------------------------------------------------------------
</TABLE>
RIMCO MONUMENT BOND FUND
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
- ---------- -------------------------------------------------------------------- -----------
<C> <C> <S> <C>
UNITED STATES TREASURY OBLIGATIONS--CONTINUED
- ------------------------------------------------------------------------------------
$ 980,000 6.125%, 7/31/2000 $ 971,121
--------------------------------------------------------------------
5,390,000 6.25%, 2/15/2003 5,298,316
--------------------------------------------------------------------
1,390,000 6.25%, 4/30/2001 1,381,980
--------------------------------------------------------------------
910,000 6.25%, 5/31/2000 906,524
--------------------------------------------------------------------
490,000 6.375%, 8/15/2002 486,477
--------------------------------------------------------------------
1,080,000 6.75%, 4/30/2000 1,094,785
--------------------------------------------------------------------
865,000 7.00%, 4/15/1999 883,277
--------------------------------------------------------------------
500,000 7.125%, 2/29/2000 513,150
--------------------------------------------------------------------
645,000 7.50%, 2/15/2005 679,295
--------------------------------------------------------------------
840,000 8.875%, 2/15/1999 896,708
--------------------------------------------------------------------
525,000 9.125%, 5/15/1999 566,338
--------------------------------------------------------------------
1,190,000 9.25%, 8/15/1998 1,268,480
-------------------------------------------------------------------- -----------
Total 22,373,543
-------------------------------------------------------------------- -----------
TOTAL UNITED STATES TREASURY OBLIGATIONS (IDENTIFIED COST
$29,827,658) 29,683,308
-------------------------------------------------------------------- -----------
(A) REPURCHASE AGREEMENTS--4.3%
- ------------------------------------------------------------------------------------
1,082,000 Citicorp Security Markets, Inc., 5.28%, dated 4/30/1996, due
5/1/1996 1,082,000
--------------------------------------------------------------------
1,083,000 Donaldson, Lufkin and Jenrette Securities Corp., 5.30%, dated
4/30/1996, due 5/1/1996 1,083,000
-------------------------------------------------------------------- -----------
TOTAL REPURCHASE AGREEMENTS (AT AMORTIZED COST) 2,165,000
-------------------------------------------------------------------- -----------
TOTAL INVESTMENTS (IDENTIFIED COST $49,388,443)(B) $49,175,619
-------------------------------------------------------------------- -----------
</TABLE>
(a) The repurchase agreements are fully collateralized by U.S. Treasury
obligations based on market prices at the date of the portfolio.
(b) The cost of investments for federal tax purposes amounts to $49,403,561. The
net unrealized depreciation of investments on a federal tax basis amounts to
$227,942 which is comprised of $520,584 appreciation and $748,526
depreciation at April 30, 1996.
Note: The categories of investments are shown as a percentage of net assets
($50,918,560) at April 30, 1996.
The following acronyms are used throughout this portfolio:
PAC -- Planned Amortization Class
REMIC -- Real Estate Mortgage Investment Conduit
(See Notes which are an integral part of the Financial Statements)
RIMCO MONUMENT BOND FUND
STATEMENT OF ASSETS AND LIABILITIES
APRIL 30, 1996
- --------------------------------------------------------------------------------
<TABLE>
<S> <C> <C>
ASSETS:
- --------------------------------------------------------------------------------
Total investments in securities, at value (identified cost
$49,388,443 and tax cost $49,403,561) $49,175,619
- --------------------------------------------------------------------------------
Cash 838
- --------------------------------------------------------------------------------
Income receivable 762,405
- --------------------------------------------------------------------------------
Receivable for investments sold 1,536,417
- --------------------------------------------------------------------------------
Receivable for shares sold 169,213
- --------------------------------------------------------------------------------
Deferred expenses 1,023
- -------------------------------------------------------------------------------- -----------
Total assets 51,645,515
- --------------------------------------------------------------------------------
LIABILITIES:
- --------------------------------------------------------------------------------
Payable for investments purchased 486,440
- ---------------------------------------------------------------------
Payable for shares redeemed 619
- ---------------------------------------------------------------------
Income distribution payable 216,935
- ---------------------------------------------------------------------
Accrued expenses 22,961
- --------------------------------------------------------------------- --------
Total liabilities 726,955
- -------------------------------------------------------------------------------- -----------
NET ASSETS for 5,378,372 shares outstanding $50,918,560
- -------------------------------------------------------------------------------- -----------
NET ASSETS CONSIST OF:
- --------------------------------------------------------------------------------
Paid in capital $54,252,132
- --------------------------------------------------------------------------------
Net unrealized depreciation of investments (212,824)
- --------------------------------------------------------------------------------
Accumulated net realized loss on investments (3,120,748)
- -------------------------------------------------------------------------------- -----------
Total Net Assets $50,918,560
- -------------------------------------------------------------------------------- -----------
NET ASSET VALUE and Redemption Proceeds Per Share
($50,918,560 / 5,378,372 shares outstanding) $9.47
- -------------------------------------------------------------------------------- -----------
Offering Price Per Share (100/95.25 of $9.47)* $9.94
- -------------------------------------------------------------------------------- -----------
</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
YEAR ENDED APRIL 30, 1996
- --------------------------------------------------------------------------------
<TABLE>
<S> <C> <C>
INVESTMENT INCOME:
- ---------------------------------------------------------------------------------
Interest $3,364,401
- --------------------------------------------------------------------------------- ----------
EXPENSES:
- ---------------------------------------------------------------------------------
Investment advisory fee $ 369,027
- ---------------------------------------------------------------------
Administrative personnel and services fee 65,580
- ---------------------------------------------------------------------
Transfer and dividend disbursing agent fees and expenses 34,897
- ---------------------------------------------------------------------
Directors'/Trustees' fees 1,344
- ---------------------------------------------------------------------
Auditing fees 13,910
- ---------------------------------------------------------------------
Legal fees 4,934
- ---------------------------------------------------------------------
Portfolio accounting fees 52,287
- ---------------------------------------------------------------------
Share registration costs 17,074
- ---------------------------------------------------------------------
Printing and postage 12,178
- ---------------------------------------------------------------------
Insurance premiums 3,931
- ---------------------------------------------------------------------
Miscellaneous 13,148
- --------------------------------------------------------------------- ---------
Total expenses 588,310
- ---------------------------------------------------------------------
Waiver of investment advisory fee (196,769)
- --------------------------------------------------------------------- ---------
Net expenses 391,541
- --------------------------------------------------------------------------------- ----------
Net investment income 2,972,860
- --------------------------------------------------------------------------------- ----------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:
- ---------------------------------------------------------------------------------
Net realized gain on investments 1,109,602
- ---------------------------------------------------------------------------------
Net change in unrealized depreciation of investments (693,650)
- --------------------------------------------------------------------------------- ----------
Net realized and unrealized gain on investments 415,952
- --------------------------------------------------------------------------------- ----------
Change in net assets resulting from operations $3,388,812
- --------------------------------------------------------------------------------- ----------
</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,
---------------------------
1996 1995
----------- -----------
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
- -----------------------------------------------------------------
OPERATIONS--
- -----------------------------------------------------------------
Net investment income $ 2,972,860 $ 2,829,141
- -----------------------------------------------------------------
Net realized gain (loss) on investments ($695,702 net gain and
$3,801,709 net loss, respectively, as computed for federal tax
purposes) 1,109,602 (2,906,431)
- -----------------------------------------------------------------
Net change in unrealized appreciation (depreciation) of
investments (693,650) 2,307,739
- ----------------------------------------------------------------- ----------- -----------
Change in net assets resulting from operations 3,388,812 2,230,449
- ----------------------------------------------------------------- ----------- -----------
DISTRIBUTIONS TO SHAREHOLDERS--
- -----------------------------------------------------------------
Distributions from net investment income (2,998,654) (2,803,347)
- ----------------------------------------------------------------- ----------- -----------
SHARE TRANSACTIONS--
- -----------------------------------------------------------------
Proceeds from sale of shares 11,038,098 7,386,255
- -----------------------------------------------------------------
Net asset value of shares issued to shareholders in payment of
distributions declared 509,532 332,132
- -----------------------------------------------------------------
Cost of shares redeemed (7,839,532) (7,877,583)
- ----------------------------------------------------------------- ----------- -----------
Change in net assets resulting from share transactions 3,708,098 (159,196)
- ----------------------------------------------------------------- ----------- -----------
Change in net assets 4,098,256 (732,094)
- -----------------------------------------------------------------
NET ASSETS:
- -----------------------------------------------------------------
Beginning of period 46,820,304 47,552,398
- ----------------------------------------------------------------- ----------- -----------
End of period (including undistributed net investment income of
$0 and $25,794, respectively) $50,918,560 $46,820,304
- ----------------------------------------------------------------- ----------- -----------
</TABLE>
(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,
---------------------------------------
1996 1995 1994 1993(A)
------ ------ ------ ------
<S> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD $ 9.35 $ 9.46 $10.40 $10.00
- --------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS
- --------------------------------------------------
Net investment income 0.59 0.56 0.53 0.60
- --------------------------------------------------
Net realized and unrealized gain (loss) on
investments 0.12 (0.11) (0.38) 0.66
- -------------------------------------------------- ------ ------ ------ ------
Total from investment operations 0.71 0.45 0.15 1.26
- --------------------------------------------------
LESS DISTRIBUTIONS
- --------------------------------------------------
Distributions from net investment income (0.59) (0.56) (0.53) (0.60)
- --------------------------------------------------
Distributions from net realized gains -- -- (0.56) (0.26)
- -------------------------------------------------- ------ ------ ------ ------
Total distributions (0.59) (0.56) (1.09) (0.86)
- -------------------------------------------------- ------ ------ ------ ------
NET ASSET VALUE, END OF PERIOD $ 9.47 $ 9.35 $ 9.46 $10.40
- -------------------------------------------------- ------ ------ ------ ------
TOTAL RETURN (B) 7.60% 5.01% 1.10% 12.93%
- --------------------------------------------------
RATIOS TO AVERAGE NET ASSETS
- --------------------------------------------------
Expenses 0.80% 0.80% 0.68% 0.50%(c)
- --------------------------------------------------
Net investment income 6.04% 6.06% 5.15% 5.95%(c)
- --------------------------------------------------
Expense waiver/reimbursement (d) 0.40% 0.40% 0.48% 0.65%(c)
- --------------------------------------------------
SUPPLEMENTAL DATA
- --------------------------------------------------
Net assets, end of period (000 omitted) $50,919 $46,820 $47,552 $44,668
- --------------------------------------------------
Portfolio turnover 128% 262% 344% 371%
- --------------------------------------------------
</TABLE>
(a) Reflects operations for the period from May 11, 1992 (date of initial public
investment) to April 30, 1993.
(b) Based on net asset value, which does not reflect the sales load or
contingent deferred sales charge, if applicable.
(c) Computed on an annualized basis.
(d) This voluntary expense decrease is reflected in both the expense and net
investment income ratios shown above.
(See Notes which are an integral part of the Financial Statements)
RIMCO MONUMENT STOCK FUND
PORTFOLIO OF INVESTMENTS
APRIL 30, 1996
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
- ---------- ------------------------------------------------------------------ -----------
<C> <C> <S> <C>
COMMON STOCKS--96.6%
- -----------------------------------------------------------------------------------
BASIC MATERIALS--4.4%
------------------------------------------------------------------
23,360 Eastman Chemical Co. $ 1,570,960
------------------------------------------------------------------
9,565 Olin Corp. 846,503
------------------------------------------------------------------
18,125 Potash Corporation of Saskatchewan, Inc. 1,277,812
------------------------------------------------------------------ -----------
Total 3,695,275
------------------------------------------------------------------ -----------
CAPITAL GOODS--8.2%
------------------------------------------------------------------
30,690 Alco Standard Corp. 1,776,184
------------------------------------------------------------------
12,700 Consolidated Rail Corp. 885,825
------------------------------------------------------------------
18,155 Rockwell International Corp. 1,062,067
------------------------------------------------------------------
17,325 Textron, Inc. 1,485,619
------------------------------------------------------------------
15,820 United Technologies Corp. 1,748,110
------------------------------------------------------------------ -----------
Total 6,957,805
------------------------------------------------------------------ -----------
CONSUMER CYCLICAL--10.2%
------------------------------------------------------------------
16,635 (a) AMR Corp. 1,484,674
------------------------------------------------------------------
52,220 Black & Decker Corp. 2,101,855
------------------------------------------------------------------
32,380 Chrysler Corp. 2,031,845
------------------------------------------------------------------
40,450 Circuit City Stores, Inc. 1,284,287
------------------------------------------------------------------
34,425 Sears Roebuck & Co. 1,716,947
------------------------------------------------------------------ -----------
Total 8,619,608
------------------------------------------------------------------ -----------
CONSUMER SERVICES--3.8%
------------------------------------------------------------------
10,556 Disney, (Walt) Co. 654,472
------------------------------------------------------------------
18,965 Tribune Co. 1,322,809
------------------------------------------------------------------
65,730 Wendy's International, Inc. 1,257,086
------------------------------------------------------------------ -----------
Total 3,234,367
------------------------------------------------------------------ -----------
</TABLE>
RIMCO MONUMENT STOCK FUND
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
- ---------- ------------------------------------------------------------------ -----------
<C> <C> <S> <C>
COMMON STOCKS--CONTINUED
- -----------------------------------------------------------------------------------
CONSUMER STAPLES--12.6%
------------------------------------------------------------------
18,065 CPC International, Inc. $ 1,248,743
------------------------------------------------------------------
23,055 Coca Cola Co. 1,878,982
------------------------------------------------------------------
41,410 ConAgra, Inc. 1,599,461
------------------------------------------------------------------
20,825 Kimberly Clark Corp. 1,512,416
------------------------------------------------------------------
17,175 Philip Morris Cos., Inc. 1,547,897
------------------------------------------------------------------
42,145 RJR Nabisco Holdings Corp. 1,259,082
------------------------------------------------------------------
49,585 (a) Safeway, Inc. 1,673,494
------------------------------------------------------------------ -----------
Total 10,720,075
------------------------------------------------------------------ -----------
ENERGY--10.2%
------------------------------------------------------------------
12,970 Atlantic Richfield Co. 1,527,217
------------------------------------------------------------------
13,080 British Petroleum Co., PLC, ADR 1,428,990
------------------------------------------------------------------
33,930 Coastal Corp. 1,344,476
------------------------------------------------------------------
23,555 Halliburton Co. 1,351,468
------------------------------------------------------------------
14,250 Mobil Corp. 1,638,750
------------------------------------------------------------------
42,565 Unocal Corp. 1,367,401
------------------------------------------------------------------ -----------
Total 8,658,302
------------------------------------------------------------------ -----------
FINANCIALS--12.8%
------------------------------------------------------------------
40,965 American Express 1,986,802
------------------------------------------------------------------
15,285 CIGNA Corp. 1,732,937
------------------------------------------------------------------
18,740 Citicorp 1,475,775
------------------------------------------------------------------
22,950 Franklin Resources, Inc. 1,313,887
------------------------------------------------------------------
43,090 Provident Cos., Inc. 1,459,674
------------------------------------------------------------------
16,030 Student Loan Marketing Association 1,174,197
------------------------------------------------------------------
54,500 USF&G Corp. 865,188
------------------------------------------------------------------
3,545 Wells Fargo & Co. 860,106
------------------------------------------------------------------ -----------
Total 10,868,566
------------------------------------------------------------------ -----------
</TABLE>
RIMCO MONUMENT STOCK FUND
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
- ---------- ------------------------------------------------------------------ -----------
<C> <C> <S> <C>
COMMON STOCKS--CONTINUED
- -----------------------------------------------------------------------------------
HEALTH CARE--8.3%
------------------------------------------------------------------
15,105 (a) Amgen, Inc. $ 868,538
------------------------------------------------------------------
30,915 (a) Boston Scientific Corp. 1,333,209
------------------------------------------------------------------
32,105 Columbia/HCA Healthcare Corp. 1,705,578
------------------------------------------------------------------
24,530 Medtronic, Inc. 1,303,156
------------------------------------------------------------------
26,030 Pfizer, Inc. 1,792,816
------------------------------------------------------------------ -----------
Total 7,003,297
------------------------------------------------------------------ -----------
TECHNOLOGY--13.7%
------------------------------------------------------------------
31,665 (a) 3Com Corp. 1,460,548
------------------------------------------------------------------
36,170 Avnet, Inc. 1,907,967
------------------------------------------------------------------
17,690 (a) Cabletron Systems, Inc. 1,333,384
------------------------------------------------------------------
28,305 (a) Cisco Systems, Inc. 1,468,322
------------------------------------------------------------------
15,264 Computer Associates International, Inc. 1,119,996
------------------------------------------------------------------
9,235 Hewlett-Packard Co. 977,756
------------------------------------------------------------------
7,885 International Business Machines Corp. 847,637
------------------------------------------------------------------
35,800 (a) Sybase, Inc. 980,025
------------------------------------------------------------------
10,600 Xerox Corp. 1,552,900
------------------------------------------------------------------ -----------
Total 11,648,535
------------------------------------------------------------------ -----------
UTILITIES-GAS & ELECTRIC--4.6%
------------------------------------------------------------------
28,790 FPL Group, Inc. 1,241,569
------------------------------------------------------------------
65,440 Illinova Corp. 1,668,720
------------------------------------------------------------------
36,700 Unicom Corp. 1,009,250
------------------------------------------------------------------ -----------
Total 3,919,539
------------------------------------------------------------------ -----------
</TABLE>
RIMCO MONUMENT STOCK FUND
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL
AMOUNT VALUE
- ---------- ------------------------------------------------------------------ -----------
<C> <C> <S> <C>
COMMON STOCKS--CONTINUED
- -----------------------------------------------------------------------------------
UTILITIES-TELEPHONE--7.8%
------------------------------------------------------------------
26,475 AT&T Corp. $1,621,595
------------------------------------------------------------------
28,015 Ameritech Corp. 1,635,376
------------------------------------------------------------------
58,555 GTE Corp. 2,539,823
------------------------------------------------------------------
15,695 SBC Communications, Inc. 784,750
------------------------------------------------------------------ -----------
Total 6,581,544
------------------------------------------------------------------ -----------
TOTAL COMMON STOCKS (IDENTIFIED COST $62,323,887) 81,906,913
------------------------------------------------------------------ -----------
(B) REPURCHASE AGREEMENT--1.4%
- -----------------------------------------------------------------------------------
$1,150,000 Donaldson, Lufkin & Jenrette Securities Corp., 5.30%, dated
4/30/96,
due 5/1/1996 (at amortized cost) 1,150,000
------------------------------------------------------------------ -----------
TOTAL INVESTMENTS (IDENTIFIED COST, $63,473,887)(C) $83,056,913
------------------------------------------------------------------ -----------
</TABLE>
(a) Non-income producing security.
(b) The repurchase agreement is fully collateralized by U.S. Treasury
obligations based on market prices at the date of the portfolio.
(c) The cost of investments for federal tax purposes amounts to $63,473,887. The
net unrealized appreciation of investments on a federal tax basis amounts to
$19,583,026 which is comprised of $20,058,246 appreciation and $475,220
depreciation at April 30, 1996.
Note: The categories of investments are shown as a percentage of net assets
($84,797,351) at April 30, 1996.
The following acronyms are used throughout this portfolio:
<TABLE>
<S> <C> <C>
ADR -- American Depository Receipt
PLC -- Public Limited Company
</TABLE>
(See Notes which are an integral part of the Financial Statements)
RIMCO MONUMENT STOCK FUND
STATEMENT OF ASSETS AND LIABILITIES
APRIL 30, 1996
- --------------------------------------------------------------------------------
<TABLE>
<S> <C> <C>
ASSETS:
- ---------------------------------------------------------------------------------
Total investments in securities, at value (identified cost and tax cost
$63,473,887) $83,056,913
- ---------------------------------------------------------------------------------
Cash 2,976,176
- ---------------------------------------------------------------------------------
Income receivable 114,102
- ---------------------------------------------------------------------------------
Receivable for investments sold 1,254,984
- ---------------------------------------------------------------------------------
Receivable for shares sold 65,724
- ---------------------------------------------------------------------------------
Deferred expenses 787
- --------------------------------------------------------------------------------- -----------
Total assets 87,468,686
- ---------------------------------------------------------------------------------
LIABILITIES:
- ---------------------------------------------------------------------------------
Payable for investments purchased $2,623,658
- --------------------------------------------------------------------
Payable for shares redeemed 11,749
- --------------------------------------------------------------------
Accrued expenses 35,928
- -------------------------------------------------------------------- ----------
Total liabilities 2,671,335
- --------------------------------------------------------------------------------- -----------
NET ASSETS for 5,353,082 shares outstanding $84,797,351
- --------------------------------------------------------------------------------- -----------
NET ASSETS CONSIST OF:
- ---------------------------------------------------------------------------------
Paid-in capital $56,061,110
- ---------------------------------------------------------------------------------
Net unrealized appreciation of investments 19,583,026
- ---------------------------------------------------------------------------------
Accumulated net realized gain on investments 9,091,514
- ---------------------------------------------------------------------------------
Undistributed net investment income 61,701
- --------------------------------------------------------------------------------- -----------
Total Net Assets $84,797,351
- --------------------------------------------------------------------------------- -----------
NET ASSET VALUE and Redemption Proceeds Per Share:
($84,797,351 / 5,353,082 shares outstanding) $15.84
- --------------------------------------------------------------------------------- -----------
Offering Price Per Share (100/94.25 of $15.84)* $16.81
- --------------------------------------------------------------------------------- -----------
</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
YEAR ENDED APRIL 30, 1996
- --------------------------------------------------------------------------------
<TABLE>
<S> <C> <C>
INVESTMENT INCOME:
- --------------------------------------------------------------------------------
Interest $ 280,305
- --------------------------------------------------------------------------------
Dividends 1,457,973
- -------------------------------------------------------------------------------- -----------
Total income 1,738,278
- --------------------------------------------------------------------------------
EXPENSES:
- --------------------------------------------------------------------------------
Investment advisory fee $587,141
- ---------------------------------------------------------------------
Administrative personnel and services fee 104,255
- ---------------------------------------------------------------------
Transfer and dividend disbursing agent fees and expenses 39,350
- ---------------------------------------------------------------------
Directors'/Trustees' fees 1,350
- ---------------------------------------------------------------------
Auditing fees 14,054
- ---------------------------------------------------------------------
Legal fees 184
- ---------------------------------------------------------------------
Portfolio accounting fees 51,670
- ---------------------------------------------------------------------
Share registration costs 18,699
- ---------------------------------------------------------------------
Printing and postage 9,256
- ---------------------------------------------------------------------
Insurance premiums 4,241
- ---------------------------------------------------------------------
Miscellaneous 12,665
- --------------------------------------------------------------------- --------
Total expenses 842,865
- ---------------------------------------------------------------------
Waiver of investment advisory fee (93,942)
- --------------------------------------------------------------------- --------
Net expenses 748,923
- -------------------------------------------------------------------------------- -----------
Net investment income 989,355
- -------------------------------------------------------------------------------- -----------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:
- --------------------------------------------------------------------------------
Net realized gain on investments 12,753,787
- --------------------------------------------------------------------------------
Net change in unrealized appreciation of investments 8,924,816
- -------------------------------------------------------------------------------- -----------
Net realized and unrealized gain on investments 21,678,603
- -------------------------------------------------------------------------------- -----------
Change in net assets resulting from operations $22,667,958
- -------------------------------------------------------------------------------- -----------
</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,
-----------------------------
1996 1995
------------ ------------
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
- ----------------------------------------------------------------
OPERATIONS--
- ----------------------------------------------------------------
Net investment income $ 989,355 $ 994,983
- ----------------------------------------------------------------
Net realized gain on investments ($12,721,408 and $1,487,891
respectively, as computed for federal tax purposes) 12,753,787 1,487,891
- ----------------------------------------------------------------
Net change in unrealized appreciation of investments 8,924,816 5,706,453
- ---------------------------------------------------------------- ------------ ------------
Change in net assets resulting from operations 22,667,958 8,189,327
- ---------------------------------------------------------------- ------------ ------------
DISTRIBUTIONS TO SHAREHOLDERS--
- ----------------------------------------------------------------
Distributions from net investment income (984,777) (970,848)
- ----------------------------------------------------------------
Distributions from net realized gains (4,555,282) (2,942,824)
- ---------------------------------------------------------------- ------------ ------------
Change in net assets resulting from distributions to
shareholders (5,540,059) (3,913,672)
- ---------------------------------------------------------------- ------------ ------------
SHARE TRANSACTIONS--
- ----------------------------------------------------------------
Proceeds from sale of shares 18,698,038 13,679,211
- ----------------------------------------------------------------
Net asset value of shares issued to shareholders in payment of
distributions declared 2,382,006 956,516
- ----------------------------------------------------------------
Cost of shares redeemed (19,429,239) (11,490,001)
- ---------------------------------------------------------------- ------------ ------------
Change in net assets resulting from share transactions 1,650,805 3,145,726
- ---------------------------------------------------------------- ------------ ------------
Change in net assets 18,778,704 7,421,381
- ----------------------------------------------------------------
NET ASSETS:
- ----------------------------------------------------------------
Beginning of period 66,018,647 58,597,266
- ---------------------------------------------------------------- ------------ ------------
End of period (including undistributed net investment income of
$61,701 and $57,123, respectively) $ 84,797,351 $ 66,018,647
- ---------------------------------------------------------------- ------------ ------------
</TABLE>
(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,
---------------------------------------------
1996 1995 1994 1993(A)
------ ------ ------ ------
<S> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD $12.69 $11.89 $10.46 $10.00
- ------------------------------------------
INCOME FROM INVESTMENT OPERATIONS
- ------------------------------------------
Net investment income 0.18 0.20 0.16 0.21
- ------------------------------------------
Net realized and unrealized gain on
investments 4.00 1.39 1.44 0.46
- ------------------------------------------ ------ ------ ------ ------
Total from investment operations 4.18 1.59 1.60 0.67
- ------------------------------------------ ------ ------ ------ ------
LESS DISTRIBUTIONS
- ------------------------------------------
Distributions from net investment income (0.18) (0.19) (0.16) (0.21)
- ------------------------------------------
Distributions from net realized gains (0.85) (0.60) (0.01) --
- ------------------------------------------ ------ ------ ------ ------
Total distributions (1.03) (0.79) (0.17) (0.21)
- ------------------------------------------ ------ ------ ------ ------
NET ASSET VALUE, END OF PERIOD $15.84 $12.69 $11.89 $10.46
- ------------------------------------------ ------ ------ ------ ------
TOTAL RETURN (B) 33.73% 14.16% 15.28% 6.35%
- ------------------------------------------
RATIOS TO AVERAGE NET ASSETS
- ------------------------------------------
Expenses 0.96% 0.98% 1.00% 0.69%(c)
- ------------------------------------------
Net investment income 1.26% 1.66% 1.36% 2.18%(c)
- ------------------------------------------
Expense waiver/reimbursement (d) 0.12% 0.14% 0.20% 0.47%(c)
- ------------------------------------------
SUPPLEMENTAL DATA
- ------------------------------------------
Net assets, end of period (000 omitted) $84,797 $66,019 $58,597 $37,539
- ------------------------------------------
Average commission rate paid $0.0687 -- -- --
- ------------------------------------------
Portfolio turnover 81% 46% 89% 92%
- ------------------------------------------
</TABLE>
(a) Reflects operations for the period from May 11, 1992 (date of initial public
investment) to April 30, 1993.
(b) Based on net asset value, which does not reflect the sales load or
contingent deferred sales charge, if applicable.
(c) Computed on an annualized basis
(d) This voluntary expense decrease is reflected in both the expense and net
investment income ratios shown above.
(See Notes which are an integral part of the Financial Statements)
RIMCO MONUMENT SMALL CAPITALIZATION EQUITY FUND
PORTFOLIO OF INVESTMENTS
APRIL 30, 1996
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
- --------- ------------------------------------------------------------------- -----------
<C> <C> <S> <C>
COMMON STOCKS--90.7%
- -----------------------------------------------------------------------------------
BASIC MATERIALS--2.9%
-------------------------------------------------------------------
11,040 Brush Wellman, Inc. $ 207,000
-------------------------------------------------------------------
3,500 (a) Carbide/Graphite Group, Inc. 62,125
-------------------------------------------------------------------
5,575 Medusa Corp. 163,069
-------------------------------------------------------------------
6,755 Mississippi Chemical Corp. 135,944
------------------------------------------------------------------- -----------
Total 568,138
------------------------------------------------------------------- -----------
CAPITAL GOODS--5.7%
-------------------------------------------------------------------
7,245 American President Cos., Ltd. 172,974
-------------------------------------------------------------------
8,395 (a) Cable Design Technologies 277,035
-------------------------------------------------------------------
9,445 (a) Exide Electronics Group, Inc. 144,036
-------------------------------------------------------------------
5,655 (a) Sanifill, Inc. 245,286
-------------------------------------------------------------------
15,175 (a) Trident International, Inc. 265,562
------------------------------------------------------------------- -----------
Total 1,104,893
------------------------------------------------------------------- -----------
CONSUMER CYCLICAL--11.3%
-------------------------------------------------------------------
12,925 Claire's Stores, Inc. 281,119
-------------------------------------------------------------------
6,165 Comair Holdings, Inc. 228,105
-------------------------------------------------------------------
8,425 (a) Discount Auto Parts, Inc. 247,484
-------------------------------------------------------------------
6,135 (a) General Nutrition Cos., Inc. 119,633
-------------------------------------------------------------------
3,835 (a) Nine West Group, Inc. 164,426
-------------------------------------------------------------------
19,057 Pier 1 Imports, Inc. 254,887
-------------------------------------------------------------------
14,130 (a) REX Stores Corp. 220,781
-------------------------------------------------------------------
17,005 Shopko Stores, Inc. 263,578
-------------------------------------------------------------------
5,600 (a) Sunglass Hut International, Inc. 163,800
-------------------------------------------------------------------
5,160 (a) Tommy Hilfiger Corp. 234,780
------------------------------------------------------------------- -----------
Total 2,178,593
------------------------------------------------------------------- -----------
</TABLE>
RIMCO MONUMENT SMALL CAPITALIZATION EQUITY FUND
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
<C> <C> <S> <C>
SHARES VALUE
- --------- ------------------------------------------------------------------- -----------
COMMON STOCKS--CONTINUED
- -----------------------------------------------------------------------------------
CONSUMER SERVICES--14.6%
-------------------------------------------------------------------
10,460 (a) Carmike Cinemas, Inc. $ 278,498
-------------------------------------------------------------------
8,635 La Quinta Inns, Inc. 252,574
-------------------------------------------------------------------
14,140 (a) Longhorn Steaks, Inc. 383,548
-------------------------------------------------------------------
14,575 (a) National Education Corp. 216,803
-------------------------------------------------------------------
9,517 Olsten Corp. 289,079
-------------------------------------------------------------------
3,365 (a) Scholastic Corp. 220,408
-------------------------------------------------------------------
6,735 (a) Scientific Games Holdings Corp. 220,571
-------------------------------------------------------------------
7,305 (a) Starbucks Corp. 198,148
-------------------------------------------------------------------
7,800 TCA Cable TV, Inc. 228,150
-------------------------------------------------------------------
6,660 (a) Wackenhut Corrections Corp. 356,310
-------------------------------------------------------------------
9,685 (a) York Group, Inc. 177,962
------------------------------------------------------------------- -----------
Total 2,822,051
------------------------------------------------------------------- -----------
CONSUMER STAPLES--1.1%
-------------------------------------------------------------------
7,665 (a) Mondavi Robert Corp. 210,788
------------------------------------------------------------------- -----------
ENERGY--5.4%
-------------------------------------------------------------------
9,245 (a) BJ Services Company 354,777
-------------------------------------------------------------------
19,545 (a) Pride Petroleum Services, Inc. 320,049
-------------------------------------------------------------------
8,585 Tidewater, Inc. 364,863
------------------------------------------------------------------- -----------
Total 1,039,689
------------------------------------------------------------------- -----------
FINANCIAL--15.6%
-------------------------------------------------------------------
3,525 Ace, Ltd. 155,100
-------------------------------------------------------------------
8,605 Alexander & Alexander Services, Inc. 162,419
-------------------------------------------------------------------
9,022 (a) American Travellers Corp. 175,939
-------------------------------------------------------------------
19,610 Amresco, Inc. 335,821
-------------------------------------------------------------------
5,920 Astoria Financial Corp. 315,240
-------------------------------------------------------------------
20,960 (a) Dime Bancorp, Inc. 256,760
-------------------------------------------------------------------
11,710 HUBCO, Inc. 222,490
-------------------------------------------------------------------
</TABLE>
RIMCO MONUMENT SMALL CAPITALIZATION EQUITY FUND
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
<C> <C> <S> <C>
SHARES VALUE
- --------- ------------------------------------------------------------------- -----------
COMMON STOCKS-- CONTINUED
- -----------------------------------------------------------------------------------
FINANCIAL--CONTINUED
-------------------------------------------------------------------
3,405 Leader Financial Corp. $ 149,820
-------------------------------------------------------------------
8,735 Life Partners Group, Inc. 182,343
-------------------------------------------------------------------
12,490 Money Store, Inc. 315,373
-------------------------------------------------------------------
11,985 (a) Olympic Financial Ltd. 266,666
-------------------------------------------------------------------
5,505 PMI Group, Inc. 233,963
-------------------------------------------------------------------
3,795 Reliastar Financial Corp. 165,557
-------------------------------------------------------------------
1,982 Vesta Insurance Group, Inc. 63,672
------------------------------------------------------------------- -----------
Total 3,001,163
------------------------------------------------------------------- -----------
HEALTH CARE--11.9%
-------------------------------------------------------------------
12,440 (a) AMSCO International, Inc. 180,380
-------------------------------------------------------------------
12,515 Bergen Brunswig Corp. 341,034
-------------------------------------------------------------------
5,525 Life Technologies, Inc. 157,463
-------------------------------------------------------------------
7,590 (a) Lincare Holdings, Inc. 294,587
-------------------------------------------------------------------
8,460 (a) Multicare Companies, Inc. 240,053
-------------------------------------------------------------------
18,305 (a) NABI, Inc. 225,380
-------------------------------------------------------------------
8,805 (a) Quorum Health Group, Inc. 223,427
-------------------------------------------------------------------
10,065 (a) Sofamor Danek Group, Inc. 329,629
-------------------------------------------------------------------
6,440 (a) Watson Pharmaceuticals, Inc. 305,900
------------------------------------------------------------------- -----------
Total 2,297,853
------------------------------------------------------------------- -----------
TECHNOLOGY--19.3%
-------------------------------------------------------------------
3,809 (a) Alliance Semiconductor Corp. 39,994
-------------------------------------------------------------------
2,365 Analysts International Corp. 89,279
-------------------------------------------------------------------
3,725 (a) C-Cube Microsystems, Inc. 184,387
-------------------------------------------------------------------
6,285 (a) Cadence Design Systems, Inc. 328,391
-------------------------------------------------------------------
14,890 (a) Cognex Corp. 398,307
-------------------------------------------------------------------
16,565 Computervision Corp. 200,851
-------------------------------------------------------------------
4,265 (a) Computer Horizons Corp. 215,382
-------------------------------------------------------------------
</TABLE>
RIMCO MONUMENT SMALL CAPITALIZATION EQUITY FUND
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
<C> <C> <S> <C>
SHARES VALUE
- --------- ------------------------------------------------------------------- -----------
COMMON STOCKS--CONTINUED
- -----------------------------------------------------------------------------------
TECHNOLOGY--CONTINUED
-------------------------------------------------------------------
4,890 (a) Electronics for Imaging, Inc. $ 298,290
-------------------------------------------------------------------
6,040 (a) Komag, Inc. 202,340
-------------------------------------------------------------------
8,145 (a) Nu-Kote Holdings, Inc. 143,556
-------------------------------------------------------------------
8,940 (a) Oak Technology, Inc. 159,802
-------------------------------------------------------------------
4,015 (a) Picturetel Corp. 136,510
-------------------------------------------------------------------
12,158 (a) Pinnacle Systems, Inc. 313,068
-------------------------------------------------------------------
18,290 (a) S3, Inc. 258,346
-------------------------------------------------------------------
4,950 (a) Silicon Valley Group, Inc. 132,412
-------------------------------------------------------------------
6,215 (a) Symantec Corp. 100,217
-------------------------------------------------------------------
17,195 (a) Tech Data Corp. 335,302
-------------------------------------------------------------------
7,800 Telxon Corp. 179,400
------------------------------------------------------------------- -----------
Total 3,715,834
------------------------------------------------------------------- -----------
UTILITIES-GAS & ELECTRIC--1.4%
-------------------------------------------------------------------
11,151 TNP Enterprises, Inc. 264,836
------------------------------------------------------------------- -----------
UTILITIES-TELEPHONE--1.5%
-------------------------------------------------------------------
11,020 (a) LCI International, Inc. 286,520
------------------------------------------------------------------- -----------
TOTAL COMMON STOCKS (IDENTIFIED COST $13,380,000) 17,490,358
------------------------------------------------------------------- -----------
</TABLE>
RIMCO MONUMENT SMALL CAPITALIZATION EQUITY FUND
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
- --------- ------------------------------------------------------------------- -----------
<C> <C> <S> <C>
(B) REPURCHASE AGREEMENTS--9.7%
- -----------------------------------------------------------------------------------
$934,000 Citicorp Securities Markets, Inc., 5.28%, dated 4/30/1996, due
5/1/1996 $ 934,000
-------------------------------------------------------------------
935,000 Donaldson, Lufkin & Jenrette Securities Corp., 5.30%, dated
4/30/1996, due 5/1/1996 935,000
------------------------------------------------------------------- -----------
TOTAL REPURCHASE AGREEMENTS (AT AMORTIZED COST) 1,869,000
------------------------------------------------------------------- -----------
TOTAL INVESTMENTS (IDENTIFIED COST $15,249,000)(C) $19,359,358
------------------------------------------------------------------- -----------
</TABLE>
(a) Non-income producing security.
(b) The repurchase agreements are fully collateralized by U.S. Treasury
obligations based on market prices at the date of the portfolio.
(c) The cost of investments for federal tax purposes amounts to $15,266,304. The
net unrealized appreciation of investments on a federal tax basis amounts to
$4,093,054 which is comprised of $4,470,899 appreciation and $377,845
depreciation at April 30, 1996.
Note: The categories of investments are shown as a percentage of net assets
($19,289,381) at April 30, 1996.
(See Notes which are an integral part of the Financial Statements)
RIMCO MONUMENT SMALL CAPITALIZATION EQUITY FUND
STATEMENT OF ASSETS AND LIABILITIES
APRIL 30, 1996
- --------------------------------------------------------------------------------
<TABLE>
<S> <C> <C>
ASSETS:
- ---------------------------------------------------------------------------------
Total investments in securities, at value (identified cost $15,249,000 and tax
cost $15,266,304) $19,359,358
- ---------------------------------------------------------------------------------
Cash 406
- ---------------------------------------------------------------------------------
Income receivable 2,755
- ---------------------------------------------------------------------------------
Receivable for shares sold 24,361
- ---------------------------------------------------------------------------------
Deferred expenses 3,645
- --------------------------------------------------------------------------------- -----------
Total assets 19,390,525
- ---------------------------------------------------------------------------------
LIABILITIES:
- ---------------------------------------------------------------------------------
Payable for investments purchased $ 62,986
- -------------------------------------------------------------------
Payable to Portfolio Accountant 6,230
- -------------------------------------------------------------------
Accrued expenses 31,928
- ------------------------------------------------------------------- -----------
Total liabilities 101,144
- --------------------------------------------------------------------------------- -----------
Net Assets for 1,367,858 shares outstanding $19,289,381
- --------------------------------------------------------------------------------- -----------
NET ASSETS CONSIST OF:
- ---------------------------------------------------------------------------------
Paid in capital $14,399,338
- ---------------------------------------------------------------------------------
Net unrealized appreciation of investments 4,110,358
- ---------------------------------------------------------------------------------
Accumulated net realized gain on investments 779,685
- --------------------------------------------------------------------------------- -----------
Total Net Assets $19,289,381
- --------------------------------------------------------------------------------- -----------
NET ASSET VALUE and Redemption Proceeds Per Share:
($19,289,381 / 1,367,858 shares outstanding) $14.10
- --------------------------------------------------------------------------------- -----------
Offering Price Per Share (100/94.25 of $14.10)* $14.96
- --------------------------------------------------------------------------------- -----------
</TABLE>
* See "What Shares Cost" in the Prospectus.
(See Notes which are an integral part of the Financial Statements)
RIMCO MONUMENT SMALL CAPITALIZATION EQUITY FUND
STATEMENT OF OPERATIONS
YEAR ENDED APRIL 30, 1996
- --------------------------------------------------------------------------------
<TABLE>
<S> <C> <C>
INVESTMENT INCOME:
- ---------------------------------------------------------------------------------
Dividends $ 75,333
- ---------------------------------------------------------------------------------
Interest 75,408
- --------------------------------------------------------------------------------- ----------
Total investment income 150,741
- ---------------------------------------------------------------------------------
EXPENSES:
- ---------------------------------------------------------------------------------
Investment advisory fee $119,209
- ----------------------------------------------------------------------
Administrative personnel and services fee 49,999
- ----------------------------------------------------------------------
Transfer and dividend disbursing agent fees and expenses 21,847
- ----------------------------------------------------------------------
Directors'/Trustees' fees 1,200
- ----------------------------------------------------------------------
Auditing fees 12,000
- ----------------------------------------------------------------------
Legal fees 6,000
- ----------------------------------------------------------------------
Portfolio accounting fees 50,187
- ----------------------------------------------------------------------
Share registration costs 13,451
- ----------------------------------------------------------------------
Printing and postage 6,299
- ----------------------------------------------------------------------
Insurance premiums 3,548
- ----------------------------------------------------------------------
Miscellaneous 5,509
- ---------------------------------------------------------------------- --------
Total expenses 289,249
- ----------------------------------------------------------------------
Waiver of investment advisory fee (119,209)
- ---------------------------------------------------------------------- --------
Net expenses 170,040
- --------------------------------------------------------------------------------- ----------
Net operating loss (19,299)
- --------------------------------------------------------------------------------- ----------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:
- ---------------------------------------------------------------------------------
Net realized gain on investments 1,243,022
- ---------------------------------------------------------------------------------
Net change in unrealized appreciation of investments 3,821,076
- --------------------------------------------------------------------------------- ----------
Net realized and unrealized gain on investments 5,064,098
- --------------------------------------------------------------------------------- ----------
Change in net assets resulting from operations $5,044,799
- --------------------------------------------------------------------------------- ----------
</TABLE>
(See Notes which are an integral part of the Financial Statements)
RIMCO MONUMENT SMALL CAPITALIZATION EQUITY FUND
STATEMENT OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
YEAR ENDED APRIL 30,
--------------------------
1996 1995*
----------- ----------
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
- ------------------------------------------------------------------
OPERATIONS--
- ------------------------------------------------------------------
Net investment income (operating loss) $ (19,299) $ 11,338
- ------------------------------------------------------------------
Net realized gain (loss) on investments ($1,248,100 and $0,
respectively, as computed for federal tax purposes) 1,243,022 (12,226)
- ------------------------------------------------------------------
Net change in unrealized appreciation of investments 3,821,076 289,282
- ------------------------------------------------------------------ ----------- ----------
Change in net assets resulting from operations 5,044,799 288,394
- ------------------------------------------------------------------ ----------- ----------
DISTRIBUTIONS TO SHAREHOLDERS--
- ------------------------------------------------------------------
Distributions from net investment income (11,338) --
- ------------------------------------------------------------------
Distributions from net realized gains (431,812) --
- ------------------------------------------------------------------ ----------- ----------
Change in net assets resulting from distributions to
shareholders (443,150) --
- ------------------------------------------------------------------ ----------- ----------
SHARE TRANSACTIONS--
- ------------------------------------------------------------------
Proceeds from sale of shares 11,178,111 7,370,197
- ------------------------------------------------------------------
Net asset value of shares issued to shareholders in payment of
distributions declared 10,491 --
- ------------------------------------------------------------------
Cost of shares redeemed (4,110,287) (49,174)
- ------------------------------------------------------------------ ----------- ----------
Change in net assets resulting from share transactions 7,078,315 7,321,023
- ------------------------------------------------------------------ ----------- ----------
Change in net assets 11,679,964 7,609,417
- ------------------------------------------------------------------
NET ASSETS:
- ------------------------------------------------------------------
Beginning of period 7,609,417 --
- ------------------------------------------------------------------ ----------- ----------
End of period (including undistributed net investment income of
$0 and $11,338, respectively) $19,289,381 $7,609,417
- ------------------------------------------------------------------ ----------- ----------
</TABLE>
* For the period from February 27, 1995 (date of initial public investment) to
April 30, 1995.
(See Notes which are an integral part of the Financial Statements)
RIMCO MONUMENT SMALL CAPITALIZATION EQUITY FUND
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
(FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD)
<TABLE>
<CAPTION>
YEAR ENDED APRIL 30,
--------------------
1996 1995(A)
------ ------
<S> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD $10.43 $10.00
- ---------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS
- ---------------------------------------------------------------------
Net investment income (operating loss) (0.02) 0.02
- ---------------------------------------------------------------------
Net realized and unrealized gain on investments 4.05 0.41
- --------------------------------------------------------------------- ------ ------
Total from investment operations 4.03 0.43
- ---------------------------------------------------------------------
LESS DISTRIBUTIONS
- ---------------------------------------------------------------------
Distributions from net investment income (0.01) --
- ---------------------------------------------------------------------
Distributions from net realized gains (0.35) --
- --------------------------------------------------------------------- ------ ------
Total distributions (0.36) --
- --------------------------------------------------------------------- ------ ------
NET ASSET VALUE, END OF PERIOD $14.10 $10.43
- --------------------------------------------------------------------- ------ ------
TOTAL RETURN (B) 39.43% 4.30%
- ---------------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS
- ---------------------------------------------------------------------
Expenses 1.14% 1.66%(c)
- ---------------------------------------------------------------------
Net investment income (0.13%) 0.98%(c)
- ---------------------------------------------------------------------
Expense waiver/reimbursement (d) 0.80% 1.54%(c)
- ---------------------------------------------------------------------
SUPPLEMENTAL DATA
- ---------------------------------------------------------------------
Net assets, end of period (000 omitted) $19,289 $7,609
- ---------------------------------------------------------------------
Average commission rate paid $0.0650 --
- ---------------------------------------------------------------------
Portfolio turnover 70% 8%
- ---------------------------------------------------------------------
</TABLE>
(a) Reflects operations for the period from February 27, 1995 (date of initial
public investment) to April 30, 1995.
(b) Based on net asset value, which does not reflect the sales load or
contingent deferred sales charge, if applicable.
(c) Computed on an annualized basis.
(d) This voluntary expense decrease is reflected in both the expense and net
investment income ratios shown above.
(See Notes which are an integral part of the Financial Statements)
RIMCO MONUMENT FUNDS
COMBINED NOTES TO FINANCIAL STATEMENTS
APRIL 30, 1996
- --------------------------------------------------------------------------------
(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 five diversified portfolios (individually
referred to as the "Fund", or collectively as the "Funds") which are presented
herein:
<TABLE>
<CAPTION>
- ---------------------------------------------------------------------------------------------
PORTFOLIO NAME INVESTMENT OBJECTIVE
- ---------------------------------------------------------------------------------------------
<S> <C>
RIMCO Monument U.S. Treasury Money Market To provide current income consistent with
Fund ("Treasury Fund") stability of principal and liquidity.
- ---------------------------------------------------------------------------------------------
RIMCO Monument Prime Money Market Fund To provide current income consistent with
("Prime Fund") stability of principal and liquidity.
- ---------------------------------------------------------------------------------------------
RIMCO Monument Bond Fund ("Bond Fund") To achieve current income.
- ---------------------------------------------------------------------------------------------
RIMCO Monument Stock Fund ("Stock Fund") To provide growth of capital and income.
- ---------------------------------------------------------------------------------------------
RIMCO Monument Small Capitalization Equity
Fund ("Small Capitalization Fund") To provide long-term capital appreciation.
- ---------------------------------------------------------------------------------------------
</TABLE>
Effective December 11, 1995, Prime Fund offers two classes of shares: Class A
Shares and Class B Shares. 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.
INVESTMENT VALUATIONS--U.S. government securities, listed corporate bonds
other fixed income, asset-backed securities, unlisted securities, and
private placement securities are generally valued at the mean of the latest
bid and asked price as furnished by an independent pricing service. Listed
equity securities (and investments in closed-end investment companies) are
valued at the last sale price reported on a national securities exchange.
For the money market Funds within the Trust, the use of the amortized cost
method to value portfolio securities is in accordance with Rule 2a-7 under
the Act. For fluctuating net asset value Funds within the Trust, short-term
securities are valued at the prices provided by an independent pricing
service. However, short-term
RIMCO MONUMENT FUNDS
- --------------------------------------------------------------------------------
securities purchased with remaining maturities of sixty days or less may
be valued at amortized cost, which approximates fair market value.
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 under repurchase
agreement transactions. Additionally, procedures have been established by
the Funds to monitor, on a daily basis, the market value of each
repurchase agreement's collateral to ensure that the value of collateral
at least equals the repurchase price to be paid under the repurchase
agreement transaction.
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
and/or standards reviewed or established by the Board of Trustees (the
"Trustees"). Risks may arise from the potential inability of
counterparties to honor the terms of the repurchase agreement.
Accordingly, the Funds could receive less than the repurchase price on the
sale of collateral securities.
INVESTMENT INCOME, EXPENSES AND DISTRIBUTIONS--Interest income and
expenses are accrued daily. Bond premium and discount, if applicable, are
amortized as required by the Internal Revenue Code, as amended (the
"Code"). Dividend income and distributions to shareholders are recorded on
the ex-dividend date.
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 income. Accordingly, no
provisions for federal tax are necessary.
At April 30, 1996, the Prime Fund and Bond Fund., for federal tax
purposes, had a capital loss carryforward of $857,393 and $3,106,007
respectively, which will reduce each 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
and Bond Fund of any liability for federal tax. Pursuant to the Code, such
capital loss carryforward of the Prime Fund will expire 2002 ($836,919)
and 2003 ($20,474). The capital loss carryforward of the Bond Fund will
expire 2003 ($3,106,007).
Additionally, a net capital loss of $15,718 for the Prime Fund,
attributable to security transactions incurred after October 31, 1995, are
treated as arising on May 1, 1996, the first day of the Fund's next
taxable year.
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
RIMCO MONUMENT FUNDS
- --------------------------------------------------------------------------------
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.
DEFERRED EXPENSES--The costs incurred by each Fund with respect to
registration of their shares in their first fiscal year, excluding the
initial expense of registering their shares, have been deferred and are
being amortized using the straight-line method over a period of five years
from each Fund's commencement date.
USE OF ESTIMATES--The preparation of financial statements in conformity
with generally accepted accounting principles requires management to make
estimates and assumptions that affect the amounts of assets, liabilities,
expenses and revenues reported in the financial statements. Actual results
could differ from those estimated.
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).
Transactions in shares were as follows:
<TABLE>
<CAPTION>
TREASURY FUND
-----------------------------
YEAR ENDED YEAR ENDED
APRIL 30, APRIL 30,
1996 1995
- ------------------------------------------------------------------------------------ ------------ ------------
<S> <C> <C>
Shares sold 436,204,901 375,221,400
- ------------------------------------------------------------------------------------
Shares issued to shareholders in payment of distributions declared 773,387 446,947
- ------------------------------------------------------------------------------------
Shares redeemed (410,963,751) (401,527,266)
- ------------------------------------------------------------------------------------ ----------- -----------
Net change resulting from share transactions 26,014,537 (25,858,919)
- ------------------------------------------------------------------------------------ ----------- -----------
</TABLE>
<TABLE>
<CAPTION>
PRIME FUND
-----------------------------
YEAR ENDED YEAR ENDED
APRIL 30, APRIL 30,
CLASS A 1996 1995
- ------------------------------------------------------------------------------------ ------------ ------------
<S> <C> <C>
Shares sold 993,934,310 830,172,533
- ------------------------------------------------------------------------------------
Shares issued to shareholders in payment of distributions declared 3,827,511 1,892,619
- ------------------------------------------------------------------------------------
Shares redeemed (913,943,749) (883,018,651)
- ------------------------------------------------------------------------------------ ----------- -----------
Net change resulting from Class A transactions 83,818,072 (50,953,499)
- ------------------------------------------------------------------------------------ ----------- -----------
</TABLE>
RIMCO MONUMENT FUNDS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRIME FUND
-----------------------------
PERIOD ENDED YEAR ENDED
APRIL 30, APRIL 30,
CLASS B 1996** 1995
- ----------------------------------------------------------------------------------- ------------ ------------
<S> <C> <C>
Shares sold 10,100 --
- ----------------------------------------------------------------------------------
Shares issued to shareholders in payment of distributions declared 2 --
- ----------------------------------------------------------------------------------
Shares redeemed 0 --
- ---------------------------------------------------------------------------------- ---------- ----------
Net change resulting from Class B transactions 10,102 --
- ---------------------------------------------------------------------------------- ---------- ----------
Net change resulting from share transactions 83,828,174 (50,953,499)
- ---------------------------------------------------------------------------------- ---------- ----------
</TABLE>
<TABLE>
<CAPTION>
SMALL
CAPITALIZATION
BOND FUND STOCK FUND FUND
-------------------- --------------------- ------------------
YEAR YEAR YEAR PERIOD
YEAR ENDED ENDED ENDED ENDED
ENDED APRIL YEAR ENDED APRIL APRIL APRIL
APRIL 30, 30, APRIL 30, 30, 30, 30,
1996 1995 1996 1995 1995 1995*
- -------------------------------------------------------- --------- -------- ---------- -------- -------- -------
<S> <C> <C> <C> <C> <C> <C>
Shares sold 1,124,984 795,895 1,281,444 1,146,797 975,448 734,409
- --------------------------------------------------------
Shares issued to shareholders in payment of
distributions declared 52,178 35,894 162,712 81,999 889 --
- --------------------------------------------------------
Shares redeemed (803,997) (851,293) (1,293,310) (956,822) (338,047) (4,841)
- -------------------------------------------------------- -------- ------- --------- ------- ------- ------
Net change resulting from share transactions 373,165 (19,504) 150,846 271,974 638,290 729,568
- -------------------------------------------------------- -------- ------- --------- ------- ------- ------
</TABLE>
* For the period from February 27, 1995 (date of initial public investment) to
April 30, 1995.
** For the period from December 12, 1995 (date of initial public investment) to
April 30, 1996.
(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.
<TABLE>
<CAPTION>
ANNUAL
FUND RATE
--------------------------------------------------------- ------
<S> <C>
Treasury Fund 0.50%
---------------------------------------------------------
Prime Fund 0.50%
---------------------------------------------------------
Bond Fund 0.75%
---------------------------------------------------------
Stock Fund 0.75%
---------------------------------------------------------
Small Capitalization Fund 0.80%
---------------------------------------------------------
</TABLE>
RIMCO MONUMENT FUNDS
- --------------------------------------------------------------------------------
CAPITAL CONTRIBUTION--On December 9, 1994, Prime Fund sold, at amortized cost,
two Orange County, CA bond securities, each with a $5,000,000 par value, to
Riggs National Corp. In connection with this purchase, Riggs National Corp. made
a capital contribution in the amount of $1,198,029 to the Fund, which
represented the difference between the estimated market value and amortized cost
of the securities on the date of sale.
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.
TRANSFER AGENT AND DIVIDEND DISBURSING AGENT FEES--Federated Services Company
("FServ"), through its subsidiary, Federated Shareholder Services Company,
serves as transfer and dividend disbursing agent for the Funds. The fee paid to
FServ is based on the size, type, and number of accounts and transactions made
by shareholders.
PORTFOLIO ACCOUNTING FEES--FServ maintains the Trust's accounting records for
which it receives a fee. The fee is based on the level of each Fund's average
daily net assets for the period, plus out-of-pocket expenses.
CUSTODIAN FEES--Riggs Bank N.A. is the Trust's custodian. The fee is based on
the level of each Fund's average daily net assets for the period, plus
out-of-pocket expenses.
ORGANIZATIONAL EXPENSES--Organizational expenses were borne initially by FAS.
The Funds have agreed to reimburse FAS for the organizational expenses during
the five year period following each Fund's effective date. For the year ended
April 30, 1996, the following amounts were paid pursuant to this agreement:
<TABLE>
<CAPTION>
ORGANIZATIONAL EXPENSES
PAID
ORGANIZATIONAL FOR THE YEAR ENDED
FUND EFFECTIVE DATE EXPENSES APRIL 30, 1996
- ---------------------------------- ---------------- -------------- -----------------------
<S> <C> <C> <C>
Treasury Fund July 30, 1991 $ 50,507 $ 4,864
- ----------------------------------
Bond Fund July 30, 1991 29,704 10,397
- ----------------------------------
Stock Fund July 30, 1991 30,877 10,807
- ----------------------------------
Small Capitalization Fund February 6, 1995 22,693 126
- ----------------------------------
</TABLE>
Certain of the Officers and Trustees of the Trust are Officers and Directors or
Trustees of the above companies.
RIMCO MONUMENT FUNDS
- --------------------------------------------------------------------------------
(5) INVESTMENT TRANSACTIONS
Purchases and sales of investments, excluding short-term obligations, for the
year ended April 30, 1996, were as follows:
<TABLE>
<CAPTION>
FUND PURCHASES SALES
- ----------------------------------------------------------------- ----------- -----------
<S> <C> <C>
Bond Fund $60,791,842 $55,573,851
- ----------------------------------------------------------------- ----------- -----------
Stock Fund $59,484,812 $60,616,781
- ----------------------------------------------------------------- ----------- -----------
Small Capitalization Fund $16,333,846 $ 9,623,332
- ----------------------------------------------------------------- ----------- -----------
</TABLE>
REPORT OF ERNST & YOUNG LLP, INDEPENDENT AUDITORS
- --------------------------------------------------------------------------------
To the Board of Trustees and Shareholders of
RIMCO MONUMENT FUNDS:
We have audited the accompanying statements of assets and liabilities, including
the portfolios of investments of RIMCO MONUMENT FUNDS (comprising respectively,
RIMCO Prime Money Market Fund, RIMCO U.S. Treasury Money Market Fund, RIMCO Bond
Fund, RIMCO Small Capitalization Equity Fund and RIMCO Stock Fund portfolios) as
of April 30, 1996, and the related statements of operations for the year then
ended, the statements of changes in net assets for each of the two years in the
periods then ended and financial highlights for each of the periods presented
therein. These financial statements and financial highlights are the
responsibility of the Trust's management. Our responsibility is to express an
opinion on these financial statements and financial highlights based on our
audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audits to obtain
reasonable assurance about whether the financial statements and financial
highlights are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements. Our procedures included confirmation of securities owned as of April
30, 1996, by correspondence with the custodian and brokers. An audit also
includes assessing the accounting principles used and significant estimates made
by management, as well as evaluating the overall financial statement
presentation. We believe that our audits provide a reasonable basis for our
opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of each
of the respective portfolios constituting RIMCO MONUMENT FUNDS, as indicated
above, at April 30, 1996, the results of their operations for the year then
ended, the changes in their net assets for each of the two years in the periods
then ended, and financial highlights for each of the periods presented therein,
in conformity with generally accepted accounting principles.
ERNST & YOUNG LLP
Pittsburgh, Pennsylvania
June 14, 1996
<TABLE>
<S> <C>
TRUSTEES OFFICERS
- ---------------------------------------------------------------------------------------------
John F. Donahue John F. Donahue
Thomas G. Bigley Chairman
John T. Conroy, Jr. Edward C. Gonzales
William J. Copeland President and Treasurer
James E. Dowd J. Christopher Donahue
Lawrence D. Ellis, M.D. Executive Vice President
Edward L. Flaherty, Jr. John W. McGonigle
Edward C. Gonzales Executive Vice President, and Secretary
Peter E. Madden Jeffrey W. Sterling
Gregor F. Meyer Vice President and Assistant Treasurer
John E. Murray, Jr. Richard B. Fisher
Wesley W. Posvar Vice President
Marjorie P. Smuts David M. Taylor
Assistant Treasurer
Jay S. Neuman
Assistant Secretary
</TABLE>
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 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 Fund's prospectus which contains facts concerning
the Funds' objective and policies, management fees, expenses and other
information.
APPENDIX
A. The graphic presentation here displayed consists of a legend in the
upper left quadrant of the chart indicating the components of the
corresponding line graph. RIMCO Monument Bond Fund (the "Fund") is
represented by a solid line. The Lehman Brothers Government/Corporate
Total Index (`Lehman Bros. Index'') is represented by a broken line. The
line graph is a visual representation of a comparison of change in value of
a hypothetical $10,000 purchase in the Fund and the Lehman Bros. Index.
The "y" axis reflects the cost of the investment. The "x" axis reflects
computation periods from the Fund's start of performance, 05/11/92, through
04/30/96. The left margin of the chart reflects the ending value of the
hypothetical investment in the Fund as compared to the Lehman Brothers.
Index.; the ending values are $12,461 and $13,455, respectively. There is
also a legend below the graphic presentation which indicates the Average
Annual Total Return for the period ended April 30, 1996, beginning with the
start of performance of the Fund (05/11/92), and the one-year period; the
Average Annual Total Returns are 5.34% and 2.45%. respectively.
B. The graphic presentation here displayed consists of a legend in the
upper left quadrant of the chart indicating the components of the
corresponding line graph. RIMCO Monument Stock Fund (the "Fund") is
represented by a solid line. The Standard & Poor's 500 Index (`S&P.
Index') is represented by a broken line, The line graph is a visual
representation of a comparison of change in value of a hypothetical $10,000
purchase in the Fund and the S&P. Index. The "y" axis reflects the cost of
the investment. The "x" axis reflects computation periods from the Fund's
start of performance, 05/11/92, through 04/30/96. The left margin of the
chart reflects the ending value of the hypothetical investment in the Fund
as compared to the S&P. Index.; the ending values are $18,134 and $17,568,
respectively. There is also a legend below the graphic presentation which
indicates the Average Annual Total Return for the period ended April 30,
1996, beginning with the start of performance of the Fund (05/11/92), and
the one-year period; the Average Annual Total Returns are 15.47% and
26.08%, respectively.
C. The graphic presentation here displayed consists of a legend in the
upper left quadrant of the chart indicating the components of the
corresponding line graph. RIMCO Monument Small Capitalization Equity Fund
(the "Fund") is represented by a solid line. The Russell 2000 Index
(`Russell 2000 Index'') is represented by a broken line, The line graph is
a visual representation of a comparison of change in value of a
hypothetical $10,000 purchase in the Fund and the Russell 2000. Index. The
"y" axis reflects the cost of the investment. The "x" axis reflects
computation periods from the Fund's start of performance, 05/11/92, through
04/30/96. The left margin of the chart reflects the ending value of the
hypothetical investment in the Fund as compared to the Russell 2000 Index.;
the ending values are $14,034 and $13,827, respectively. There is also a
legend below the graphic presentation which indicates the Average Annual
Total Return for the period ended April 30, 1996, beginning with the start
of performance of the Fund (05/11/92), and the one-year period; the Average
