RIMCO
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MONUMENT
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FUNDS
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COMBINED ANNUAL REPORT
TO SHAREHOLDERS
APRIL 30, 1997
RIMCO U.S. Treasury Money Market Fund
RIMCO Prime Money Market Fund
RIMCO Bond Fund
RIMCO Stock Fund
RIMCO Small Capitalization Equity Fund
Mutual Funds are not FDIC insured and are not deposits or obligations
of or guaranteed by Riggs Bank N.A. They involve investment risks,
including the possible loss of the principal amount invested.
RIGGS INVESTMENT MANAGEMENT CORP. (RIMCO)
- ------------------------------------------------------
Investment Adviser
FEDERATED SECURITIES CORP.
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Distributor
2052603 (6/97) [Recycled Logo]
PRESIDENT'S MESSAGE
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Dear Shareholder:
I am pleased to present your Annual Report to Shareholders for the
RIMCO Monument Funds. In addition to a complete listing of each fund's
investments, this report contains complete financial information for
each fund from May 1, 1996 through April 30, 1997.
The fund-by-fund highlights over the 12-month period are as follows:
The RIMCO MONUMENT U.S. TREASURY MONEY MARKET FUND paid dividends totaling $0.05
per share. Net assets stood at $141 million on the last day of the period.*
The RIMCO MONUMENT PRIME MONEY MARKET FUND paid dividends totaling
$0.05 per share to shareholders of both Class A Shares and Class B
Shares. Net assets stood at $398.3 million on the last day of the
period.*
The RIMCO MONUMENT BOND FUND paid a monthly dividend stream totaling
$0.59 per share, which contributed to a total return of 5.79%, or
0.79% adjusted for the fund's maximum sales charge.** The fund's net
asset value declined by $0.06 due to bond market volatility. Net
assets stood at $31.8 million at the end of the period.
The RIMCO MONUMENT STOCK FUND continued to deliver strong performance.
The fund achieved a total return of 16.34%, or 9.63% adjusted for the
fund's maximum sales charge, in a favorable economic environment for
stocks.** The fund paid $0.20 per share in total income distributions
to shareholders, in addition to $2.71 per share in capital gains. Net
assets reached $89.1 million at the end of the period.
After a period of extremely strong performance since it began
operation in 1995, the RIMCO MONUMENT SMALL CAPITALIZATION EQUITY FUND
was impacted by a short-term decline in the small-company stock market
that occurred during the past fiscal year.+ While its total return for
the fiscal year was negative (-3.76%, or -9.29% adjusted for the
fund's maximum sales charge), the fund's annualized total return since
it began operation on February 27, 1995 is a strong 16.72%, or 13.59%
adjusted for the maximum sales charge as of April 30, 1997.** Over the
period, the fund paid $0.82 per share in capital gains. Net assets
reached $27.8 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 that 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.
+ Small cap stocks have historically experienced greater volatility
than average.
Thank you for participating in one or more key financial markets
through the professional management and diversification of the RIMCO
Monument Funds. We'll continue to keep you up to date on your
investment as we provide your account with the highest level of
personal service.
Sincerely,
LOGO
Edward C. Gonzales
President
June 15, 1997
INVESTMENT REVIEW
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RIMCO MONUMENT BOND FUND ("BOND FUND")
Since the pronounced interest rate rise during the first four months
of 1996, the fixed income markets have been remarkably stable. Rates
are up about 20 basis points as measured by the 2-year Treasury note,
and basically unchanged as measured by the 10-year and 30-year
Treasury securities for the 12-month period ending April 30, 1997.
Economic strength and its impact on inflation rates remain the
dominant themes influencing the markets. While the economy was strong
during the first quarter of 1997, inflation pressures remain muted.
For the fiscal year ending April 30, 1997, the Bond Fund generated a
total return of 5.79%, based on net asset value.* This compares to a
return of 7.08% for the Lehman Brothers Aggregate Bond Index** over
the same period.
Significant changes were made in the sector weightings of the Bond
Fund during the first quarter of 1997. Increased fund yield was the
objective, as the agency, collateralized mortgage obligation ("CMO")
and corporate sectors (especially finance) were reduced in favor of
increases in both U.S. Treasuries and Government National Mortgage
Association pass-through securities. Current sector weightings are as
follow:
<TABLE>
<S> <C>
U.S. government................................ 45%
Agency......................................... 5%
Pass-throughs.................................. 24%
CMO............................................ 7%
Industrial..................................... 7%
Telephones..................................... 3%
Finance........................................ 5%
International.................................. 3%
</TABLE>
During the first quarter of 1997, fund duration was also actively
managed as rates increased through much of February and March. Cash
holdings were increased during the period and duration reduced to
between 92% and 95% of the benchmark duration. During late March, fund
duration was moved back to 100% of the benchmark and remains there. We
expect to continue this approach during the summer of 1997, as it fits
with our outlook for U.S. Treasury Bond yields to remain in a range of
6.50%-7.00%.
* 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. Total return for the
Bond Fund based on offering price for the same time period was
0.79%.
** 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.
Investments cannot be made in an index.
INVESTMENT REVIEW
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RIMCO MONUMENT STOCK FUND ("STOCK FUND")
RIMCO MONUMENT SMALL CAPITALIZATION EQUITY FUND ("SMALL CAPITALIZATION FUND")
The Stock Fund continued its trend of providing solid returns to our
shareholders. For the year ended April 30, 1997, the Stock Fund
generated a total return of 16.34% based on net asset value.*
The Small Capitalization Fund generated a total return of (3.76%) based on net
asset value.*
Our investment philosophy in managing both stock funds is to balance
long-term valuation with the catalyst of short-term earnings
acceleration. We employ our methodology which we call Value/ Momentum
by focusing on four key factors: (1) relative value; (2) earnings
growth relative to the stock's 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 past twelve months, we maintained broad diversification among
industry segments. Examples of core holdings in the Stock Fund that
were propelled by superior earnings growth included: Provident Cos.,
Inc., up 67%; Student Loan Marketing Association, up 64%; and Pfizer,
Inc., up 41%.
In the Small Capitalization Fund, companies in the retail and finance
sectors exhibited accelerating earnings growth due in part to a benign
interest rate environment and improved consumer confidence. This was
offset by weakness in technology. Superior core investments included:
Pier 1 Imports, Inc., up 49%; Life Technologies, Inc., up 34%; and
Vesta Insurance Group, Inc., up 30%.
While the environment for stocks was generally favorable, the markets
were extremely narrow, with market capitalization exhibiting the
greatest influence on performance, i.e. the larger the company, the
better the performance. Because we are investing in those companies
that offer the best balance between valuation and accelerating
earnings, our focus in the Stock Fund shifted over the course of the
year away from the largest companies to more medium capitalization
companies which demonstrated better valuation. Although the
performance of the Stock Fund lagged the popular indexes during this
period, we believe that adhering to our discipline will favor our
clients over the long term as the markets generally correct
overvaluations and reward companies that are undervalued.
We continue to expect a favorable environment for stocks predicated on
moderate economic growth with low inflation of 3.0-3.5%. As investors
accept this scenario, we believe the market should broaden out to
include small- and mid-capitalization stocks. We believe that our
disciplined focus on undervalued companies with solid earnings growth
should 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. Total return for the
Stock Fund based on offering price for the same time period was
9.63%. Total return for the Small Capitalization Fund based on
offering price for the same time period was (9.29%).
INVESTMENT REVIEW
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RIMCO MONUMENT U.S. TREASURY MONEY MARKET FUND ("TREASURY FUND")
RIMCO MONUMENT PRIME MONEY MARKET FUND ("PRIME FUND")
Since our last semi-annual review (six-month period ending October 31,
1996), short-term interest rates have continued to fluctuate within a
very narrow range. The discount rate on the highest tier commercial
paper, for example, has fluctuated between a low of 5.22% and a high
of 5.60% during this period and stood at 5.57% as of our April 30,
1997 fiscal year end. The recent trend for short-term rates, however,
has been up. First calendar quarter Gross Domestic Product grew at
close to 6% due to surprisingly strong consumer spending. Meanwhile,
the unemployment rate dropped to 4.9%, the lowest rate in decades.
This level of economic activity, and an unemployment rate that has, in
the past, been associated with wage inflation, prompted the Federal
Reserve Board (the "Fed") to raise the official federal funds target
rate from 5.25% to 5.5%.
Recent statistics have shown a tapering off of demand, allowing the
Fed to leave rates unchanged at its recent May FOMC meeting. We
currently expect short-term rates to continue to trade narrowly and
economic activity to moderate. We certainly do not foresee an easing
of short-term rates by the Fed any time soon. However, continued
economic strength and strong employment gains would likely lead to
additional Fed rate hikes. With strong stock market gains,
historically high consumer confidence, and a very favorable employment
situation, the risk at the moment would seem to favor higher, rather
than lower, short-term rates.
RIMCO MONUMENT BOND FUND
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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, 1997, compared to the Lehman
Brothers Govt./Corp. Total Index.+
GRAPHIC PRESENTATION "A1" OMITTED. SEE APPENDIX.
AVERAGE ANNUAL TOTAL RETURN** FOR THE
PERIOD ENDED APRIL 30, 1997
1 Year.........................................................0.79%
Start of Performance (05/11/92)................................5.43%
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
charges, expenses, or other fees that the SEC requires to be reflected in the
Fund's performance. This index is unmanaged.
RIMCO MONUMENT STOCK FUND
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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 (start of performance) to April 30, 1997 compared to the Standard
& Poor's 500 Index.+
GRAPHIC PRESENTATION "A2" OMITTED. SEE APPENDIX.
AVERAGE ANNUAL TOTAL RETURN** FOR THE
PERIOD ENDED APRIL 30, 1997
1 Year........................................................9.63%
Start of Performance (05/11/92)............................. 15.65%
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
charges, 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
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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,
1997 compared to the Russell 2000 Index.+
GRAPHIC PRESENTATION "A3" OMITTED. SEE APPENDIX.
AVERAGE ANNUAL TOTAL RETURN** FOR THE
PERIOD ENDED APRIL 30, 1997
1 Year......................................................(9.29)%
Start of Performance (2/27/95).............................. 13.59%
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 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 Russell 2000 Index is not adjusted to reflect sales charges,
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, 1997
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<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
- ----------- ----------------------------------------------------------------- ------------
<C> <C> <S> <C>
U.S. TREASURY OBLIGATIONS--47.2%
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U.S. TREASURY BILLS--20.9%
-----------------------------------------------------------------
$30,000,000 5/1/1997-3/5/1998 $ 29,524,856
-----------------------------------------------------------------
U.S. TREASURY NOTES--26.3%
-----------------------------------------------------------------
37,000,000 5.625%-8.500%, 6/30/1997-7/31/1997 37,088,349
----------------------------------------------------------------- ------------
TOTAL U.S. TREASURY OBLIGATIONS 66,613,205
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(A) REPURCHASE AGREEMENTS--52.5%
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37,012,000 Donaldson, Lufkin and Jenrette Securities Corp.,
5.350%, dated 4/30/1997, due 5/1/1997 37,012,000
-----------------------------------------------------------------
37,013,000 Prudential Securities, Inc., 5.350%, dated 4/30/1997, due
5/1/1997 37,013,000
----------------------------------------------------------------- ------------
TOTAL REPURCHASE AGREEMENTS 74,025,000
----------------------------------------------------------------- ------------
TOTAL INVESTMENTS (AT AMORTIZED COST)(B) $140,638,205
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</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
($141,011,281) at April 30, 1997.
(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, 1997
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<TABLE>
<S> <C> <C>
ASSETS:
- ------------------------------------------------------------------
Investments in repurchase agreements $74,025,000
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Investments in securities 66,613,205
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Total investments in securities, at amortized cost and value $140,638,205
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Cash 230,153
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Income receivable 696,222
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Total assets 141,564,580
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LIABILITIES:
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Payable for shares redeemed 55,711
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Income distribution payable 469,244
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Accrued expenses 28,344
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Total liabilities 553,299
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NET ASSETS for 141,011,281 shares outstanding $141,011,281
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NET ASSET VALUE, Offering Price and Redemption Proceeds Per Share:
$141,011,281 / 141,011,281 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, 1997
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<TABLE>
<S> <C> <C>
INVESTMENT INCOME:
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Interest $7,138,461
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EXPENSES:
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Investment advisory fee $ 672,065
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Administrative personnel and services fee 171,345
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Transfer and dividend disbursing agent fees and expenses 28,372
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Directors'/Trustees' fees 1,154
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Auditing fees 13,901
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Legal fees 1,087
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Portfolio accounting fees 40,622
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Share registration costs 7,658
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Printing and postage 3,609
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Insurance premiums 3,294
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Miscellaneous 1,535
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Total expenses 944,642
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Waiver of investment advisory fee (173,436)
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Net expenses 771,206
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Net investment income $6,367,255
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</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
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<TABLE>
<CAPTION>
YEAR ENDED APRIL 30,
-------------------------------
1997 1996
------------- -------------
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
- --------------------------------------------------------------
OPERATIONS--
- --------------------------------------------------------------
Net investment income $ 6,367,255 $ 5,002,721
- -------------------------------------------------------------- ------------- -------------
DISTRIBUTIONS TO SHAREHOLDERS--
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Distributions from net investment income (6,367,255) (5,002,721)
- -------------------------------------------------------------- ------------- -------------
SHARE TRANSACTIONS--
- --------------------------------------------------------------
Proceeds from sale of shares 449,279,619 436,204,901
- --------------------------------------------------------------
Net asset value of shares issued to shareholders in payment of
distributions declared 860,699 773,387
- --------------------------------------------------------------
Cost of shares redeemed (416,232,679) (410,963,751)
- -------------------------------------------------------------- ------------- -------------
Change in net assets resulting from share transactions 33,907,639 26,014,537
- -------------------------------------------------------------- ------------- -------------
Change in net assets 33,907,639 26,014,537
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NET ASSETS:
- --------------------------------------------------------------
Beginning of period 107,103,642 81,089,105
- -------------------------------------------------------------- ------------- -------------
End of period $ 141,011,281 $ 107,103,642
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</TABLE>
(See Notes which are an integral part of the Financial Statements)
RIMCO MONUMENT U.S. TREASURY MONEY MARKET FUND
FINANCIAL HIGHLIGHTS
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(FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD)
<TABLE>
<CAPTION>
YEAR ENDED APRIL 30,
-------------------------------------------------------
1997 1996 1995 1994 1993 1992(A)
----- ----- ----- ----- ----- -----
<S> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
- -----------------------------------------
INCOME FROM INVESTMENT OPERATIONS
- -----------------------------------------
Net investment income 0.05 0.05 0.04 0.03 0.03 0.02
- ----------------------------------------- ----- ----- ----- ----- ----- -----
LESS DISTRIBUTIONS
- -----------------------------------------
Distributions from net investment
income (0.05) (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 $1.00
- ----------------------------------------- ----- ----- ----- ----- ----- -----
TOTAL RETURN (B) 4.83% 5.28% 4.39% 2.64% 2.92% 2.37%
- -----------------------------------------
RATIOS TO AVERAGE NET ASSETS
- -----------------------------------------
Expenses 0.57% 0.60% 0.60% 0.56% 0.52% 0.41%*
- -----------------------------------------
Net investment income 4.74% 5.17% 4.33% 2.61% 2.86% 4.08%*
- -----------------------------------------
Expense waiver/reimbursement (c) 0.13% 0.18% 0.20% 0.16% 0.29% 0.42%*
- -----------------------------------------
SUPPLEMENTAL DATA
- -----------------------------------------
Net assets, end of period (000 omitted) $141,011 $107,104 $81,089 $106,948 $86,875 $51,039
- -----------------------------------------
</TABLE>
* Computed on an annualized basis.
(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 charge
or contingent deferred sales charge, if applicable.
(c) 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, 1997
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
- ----------- ---------------------------------------------------------------- ------------
<C> <C> <S> <C>
CORPORATE BONDS--53.6%
- -----------------------------------------------------------------------------------
BANKING--7.7%
----------------------------------------------------------------
$ 500,000 BankAmerica Corp., 6.00%, 7/15/1997 $ 500,421
----------------------------------------------------------------
5,000,000 Bank of Boston Corp., 5.553%, 6/17/1997 4,999,836
----------------------------------------------------------------
10,000,000 NBD Bank, Indiana, 7.500%, 2/28/1998 10,143,560
----------------------------------------------------------------
5,000,000 SouthTrust Bank of Georgia, Atlanta, 5.628%, 5/21/1997 4,999,888
----------------------------------------------------------------
10,000,000 Southtrust Bank, North Carolina, 5.688%, 5/15/1997 10,000,000
---------------------------------------------------------------- ------------
Total 30,643,705
---------------------------------------------------------------- ------------
CONSUMER NON-DURABLES--0.6%
----------------------------------------------------------------
2,450,000 Philip Morris Cos., Inc., 6.375%-9.75%, 5/1/1997-1/15/1998 2,452,784
---------------------------------------------------------------- ------------
ELECTRONIC TECHNOLOGY--1.5%
----------------------------------------------------------------
5,850,000 International Business Machines Corp., 5.65%-6.375%, 11/1/1997-
1/22/1998 5,833,655
---------------------------------------------------------------- ------------
FINANCE--18.9%
----------------------------------------------------------------
8,900,000 American General Finance Corp., 7.00% - 7.625%,
10/1/1997-3/2/1998 8,960,544
----------------------------------------------------------------
7,130,000 Associates Corp. of North America, 5.875% - 9.70%, 5/1/1997-
3/15/1998 7,146,345
----------------------------------------------------------------
775,000 Beneficial Corp., 5.97%, 9/15/1997 774,918
----------------------------------------------------------------
10,000,000 CISCO, Inc., 5.394%, 5/20/1997 9,999,915
----------------------------------------------------------------
750,000 CIT Group Holdings, Inc., 8.75%, 7/1/1997 753,770
----------------------------------------------------------------
10,000,000 First Bank FSB Fargo, North Dakota, 5.658%, 5/1/1997 9,999,686
----------------------------------------------------------------
500,000 First Chicago Corp., 6.83%, 9/8/1997 501,777
----------------------------------------------------------------
6,055,000 Fleet Mortgage Group, Inc., 6.125%-7.25%, 8/15/1997-1/15/1998 6,076,773
----------------------------------------------------------------
5,000,000 Ford Capital BV, 9.375%, 1/1/1998 5,115,341
----------------------------------------------------------------
3,500,000 Household Finance Corp., 6.89%-7.75%, 6/15/1997-5/11/1998 3,512,337
----------------------------------------------------------------
5,000,000 IBM Credit Corp., 5.80%, 10/7/1997 4,995,519
----------------------------------------------------------------
</TABLE>
RIMCO MONUMENT PRIME MONEY MARKET FUND
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
- ----------- ---------------------------------------------------------------- ------------
<C> <C> <S> <C>
CORPORATE BONDS--CONTINUED
- -----------------------------------------------------------------------------------
FINANCE--CONTINUED
----------------------------------------------------------------
$ 2,000,000 Norwest Corp., 7.70%, 11/15/1997 $ 2,020,572
----------------------------------------------------------------
15,000,000 PHH Corp., 5.617%-5.668%, 5/12/1997-5/15/1997 14,998,630
---------------------------------------------------------------- ------------
Total 74,856,127
---------------------------------------------------------------- ------------
FINANCE-AUTOMOTIVE--9.5%
----------------------------------------------------------------
14,500,000 Chrysler Financial Corp., 5.92%-8.33%, 8/7/1997-2/2/1998 14,538,095
----------------------------------------------------------------
10,200,000 Ford Motor Credit Corp., 5.82%-6.80%, 5/6/1997-2/26/1998 10,222,840
----------------------------------------------------------------
13,150,000 General Motors Acceptance Corp., 5.875%-8.375%, 5/1/1997-
4/17/1998 13,148,107
---------------------------------------------------------------- ------------
Total 37,909,042
---------------------------------------------------------------- ------------
FINANCE-EQUIPMENT--6.6%
----------------------------------------------------------------
500,000 Deere (John) Capital Corp., 7.20%, 5/15/1997 500,241
----------------------------------------------------------------
22,500,000 General Electric Capital Corp., 4.98%-8.625%, 5/6/1997-3/12/1998 22,540,346
----------------------------------------------------------------
3,200,000 International Lease Finance Corp., 5.625%-6.80%,
7/15/1997-3/1/1998 3,203,942
---------------------------------------------------------------- ------------
Total 26,244,529
---------------------------------------------------------------- ------------
FINANCE-INSURANCE--2.5%
----------------------------------------------------------------
10,000,000 Allstate Life Insurance Co., GIC, 5.624%, 5/1/1997 10,000,000
---------------------------------------------------------------- ------------
FINANCE-RETAIL--2.9%
----------------------------------------------------------------
11,600,000 Sears, Roebuck & Co., 6.75%-9.25%, 5/27/1997-3/2/1998 11,661,009
---------------------------------------------------------------- ------------
FOOD & BEVERAGE--0.5%
----------------------------------------------------------------
2,100,000 PepsiCo, Inc., 6.125%, 1/15/1998 2,104,551
---------------------------------------------------------------- ------------
INDUSTRIAL SERVICES--2.9%
----------------------------------------------------------------
11,656,000 WMX Technologies, Inc., 6.375%-8.125%, 7/1/1997-2/1/1998 11,685,563
---------------------------------------------------------------- ------------
TOTAL CORPORATE BONDS 213,390,965
---------------------------------------------------------------- ------------
GOVERNMENT AGENCIES--19.2%
- -----------------------------------------------------------------------------------
(a) FEDERAL FARM CREDIT BANK--2.5%
----------------------------------------------------------------
10,000,000 5.73%, 5/6/1997 10,000,000
---------------------------------------------------------------- ------------
</TABLE>
RIMCO MONUMENT PRIME MONEY MARKET FUND
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
- ----------- ---------------------------------------------------------------- ------------
<C> <C> <S> <C>
GOVERNMENT AGENCIES--CONTINUED
- -----------------------------------------------------------------------------------
(a) FEDERAL HOME LOAN BANK--6.3%
----------------------------------------------------------------
$25,000,000 5.61%-5.875%, 5/8/1997 $ 24,999,060
---------------------------------------------------------------- ------------
(a) FEDERAL NATIONAL MORTGAGE ASSOCIATION--1.8%
----------------------------------------------------------------
7,250,000 5.383%-5.54%, 5/6/1997-6/12/1997 7,246,222
---------------------------------------------------------------- ------------
(a) STUDENT LOAN MARKETING ASSOCIATION--8.6%
----------------------------------------------------------------
34,375,000 5.53%-5.71%, 5/6/1997 34,340,668
---------------------------------------------------------------- ------------
TOTAL GOVERNMENT AGENCIES 76,585,950
---------------------------------------------------------------- ------------
(B)REPURCHASE AGREEMENTS--26.7%
- -----------------------------------------------------------------------------------
53,259,000 Donaldson, Lufkin and Jenrette Securities Corp., 5.350%, dated
4/30/1997, due 5/1/1997 53,259,000
----------------------------------------------------------------
53,260,000 Prudential Securities, Inc., 5.350%, dated 4/30/1997, due
5/1/1997 53,260,000
---------------------------------------------------------------- ------------
TOTAL REPURCHASE AGREEMENTS $106,519,000
---------------------------------------------------------------- ------------
TOTAL INVESTMENTS (AT AMORTIZED COST)(C) $396,495,915
---------------------------------------------------------------- ------------
</TABLE>
(a) Current rate and next reset date shown.
(b) The repurchase agreements are fully collateralized by U.S. Treasury
obligations based on market prices at the date of the portfolio.
(c) Also represents cost for federal tax purposes.
Note: The categories of investments are shown as a percentage of net assets
($398,299,687) at April 30, 1997.
The following acronym is used throughout 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, 1997
- --------------------------------------------------------------------------------
<TABLE>
<S> <C> <C>
ASSETS:
- ----------------------------------------------------------------------------
Investments in repurchase agreements $106,519,000
- ------------------------------------------------------------
Investments in securities 289,976,915
- ------------------------------------------------------------ ------------
Total investments in securities, at amortized cost and value
(tax cost $396,494,167) $396,495,915
- ----------------------------------------------------------------------------
Cash 3,596
- ----------------------------------------------------------------------------
Income receivable 3,934,033
- ----------------------------------------------------------------------------
Receivable for shares sold 2,936
- ---------------------------------------------------------------------------- ------------
Total assets 400,436,480
- ----------------------------------------------------------------------------
LIABILITIES:
- ----------------------------------------------------------------------------
Payable for investments purchased $ 1,038,492
- ------------------------------------------------------------
Payable for shares redeemed 68,645
- ------------------------------------------------------------
Income distribution payable 962,898
- ------------------------------------------------------------
Accrued expenses 66,758
- ------------------------------------------------------------ ------------
Total liabilities 2,136,793
- ---------------------------------------------------------------------------- ------------
NET ASSETS for 398,588,594 shares outstanding $398,299,687
- ---------------------------------------------------------------------------- ------------
NET ASSETS CONSIST OF:
- ----------------------------------------------------------------------------
Paid in capital $398,591,999
- ----------------------------------------------------------------------------
Undistributed net investment income 578,296
- ----------------------------------------------------------------------------
Accumulated net realized loss on investments (870,608)
- ---------------------------------------------------------------------------- ------------
Total Net Assets $398,299,687
- ---------------------------------------------------------------------------- ------------
NET ASSET VALUE, Offering Price and Redemption Proceeds Per Share:
- ----------------------------------------------------------------------------
Class A Shares:
- ----------------------------------------------------------------------------
$372,036,776 / 372,325,716 shares outstanding $1.00
- ---------------------------------------------------------------------------- ------------
Class B Shares:
- ----------------------------------------------------------------------------
$26,262,911 / 26,262,878 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, 1997
- --------------------------------------------------------------------------------
<TABLE>
<S> <C> <C>
INVESTMENT INCOME:
- ---------------------------------------------------------------------------------
Interest $21,525,878
- ---------------------------------------------------------------------------------
EXPENSES:
- ---------------------------------------------------------------------------------
Investment advisory fee $1,954,745
- --------------------------------------------------------------------
Administrative personnel and services fee 497,453
- --------------------------------------------------------------------
Transfer and dividend disbursing agent fees and expenses 55,047
- --------------------------------------------------------------------
Directors'/Trustees' fees 2,920
- --------------------------------------------------------------------
Auditing fees 11,688
- --------------------------------------------------------------------
Legal fees 1,496
- --------------------------------------------------------------------
Portfolio accounting fees 93,899
- --------------------------------------------------------------------
Distribution services fee -- Class B Shares 54,110
- --------------------------------------------------------------------
Share registration costs 21,687
- --------------------------------------------------------------------
Printing and postage 3,568
- --------------------------------------------------------------------
Insurance premiums 4,684
- --------------------------------------------------------------------
Miscellaneous 2,628
- -------------------------------------------------------------------- ----------
Total expenses 2,703,925
- --------------------------------------------------------------------
Waiver of investment advisory fee (676,608)
- -------------------------------------------------------------------- ----------
Net expenses 2,027,317
- --------------------------------------------------------------------------------- -----------
Net investment income 19,498,561
- --------------------------------------------------------------------------------- -----------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS
- ---------------------------------------------------------------------------------
Net realized gain on investments 2,503
- --------------------------------------------------------------------------------- -----------
Change in net assets resulting from operations $19,501,064
- --------------------------------------------------------------------------------- -----------
</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,
---------------------------------
1997 1996
--------------- -------------
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
- ------------------------------------------------------------
OPERATIONS--
- ------------------------------------------------------------
Net investment income $ 19,498,561 $ 17,291,722
- ------------------------------------------------------------
Net realized gain on investments ($14,610 net loss and
$60,388 net gain, respectively, as computed for federal tax
purposes) 2,503 49,887
- ------------------------------------------------------------ --------------- -------------
Change in net assets resulting from operations 19,501,064 17,341,609
- ------------------------------------------------------------ --------------- -------------
DISTRIBUTIONS TO SHAREHOLDERS--
- ------------------------------------------------------------
Distributions from net investment income
- ------------------------------------------------------------
Class A Shares (19,005,740) (17,475,829)
- ------------------------------------------------------------
Class B Shares (495,896) (83)
- ------------------------------------------------------------ --------------- -------------
Change in net assets resulting from distributions to
shareholders (19,501,636) (17,475,912)
- ------------------------------------------------------------ --------------- -------------
SHARE TRANSACTIONS--
- ------------------------------------------------------------
Proceeds from sale of shares 1,493,105,503 993,944,410
- ------------------------------------------------------------
Net asset value of shares issued to shareholders in payment
of distributions declared 6,512,524 3,827,513
- ------------------------------------------------------------
Cost of shares redeemed (1,469,070,241) (913,943,749)
- ------------------------------------------------------------ --------------- -------------
Change in net assets resulting from share transactions 30,547,786 83,828,174
- ------------------------------------------------------------ --------------- -------------
Change in net assets 30,547,214 83,693,871
- ------------------------------------------------------------
NET ASSETS:
- ------------------------------------------------------------
Beginning of period 367,752,473 284,058,602
- ------------------------------------------------------------ --------------- -------------
End of period (including undistributed net investment income
of $578,296 and $583,120, respectively) $ 398,299,687 $ 367,752,473
- ------------------------------------------------------------ --------------- -------------
</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,
--------------------------------------------------------
1997 1996 1995 1994 1993 1992(A)
----- ----- ------ ----- ----- -----
<S> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
- --------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS
- --------------------------------------------------
Net investment income 0.05 0.05 0.047 0.03 0.04 0.03
- --------------------------------------------------
Net realized loss on investments -- -- (0.003) -- -- --
- -------------------------------------------------- ----- ----- ------ ----- ----- -----
Total from investment operations 0.05 0.05 0.044 0.03 0.04 0.03
- --------------------------------------------------
LESS DISTRIBUTIONS
- --------------------------------------------------
Distributions from net investment income (0.05) (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 $1.00
- -------------------------------------------------- ----- ----- ------ ----- ----- -----
TOTAL RETURN (B) 5.09% 5.50% 4.84%(c) 3.08% 3.55% 2.90%
- --------------------------------------------------
RATIOS TO AVERAGE NET ASSETS
- --------------------------------------------------
Expenses 0.51% 0.51% 0.44% 0.43% 0.41% 0.27%*
- --------------------------------------------------
Net investment income 5.00% 5.26% 4.72% 3.02% 3.46% 4.56%*
- --------------------------------------------------
Expense waiver/reimbursement (d) 0.17% 0.19% 0.24% 0.28% 0.31% 0.47%*
- --------------------------------------------------
SUPPLEMENTAL DATA
- --------------------------------------------------
Net assets, end of period (000 omitted) $372,037 $367,742 $284,059 $334,765 $277,267 $111,329
- --------------------------------------------------
</TABLE>
* Computed on an annualized basis.
(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 charge
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) 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,
-----------------
1997 1996(A)
------ ------
<S> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD $ 1.00 $ 1.00
- -------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS
- -------------------------------------------------------------------------
Net investment income 0.05 0.02
- ------------------------------------------------------------------------- ------ ------
LESS DISTRIBUTIONS
- -------------------------------------------------------------------------
Distributions from net investment income (0.05) (0.02)
- ------------------------------------------------------------------------- ------ ------
NET ASSET VALUE, END OF PERIOD $ 1.00 $ 1.00
- ------------------------------------------------------------------------- ------ ------
TOTAL RETURN (B) 4.57% 0.74%
- -------------------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS
- -------------------------------------------------------------------------
Expenses 1.01% 1.07%*
- -------------------------------------------------------------------------
Net investment income 4.58% 4.58%*
- -------------------------------------------------------------------------
Expense waiver/reimbursement (c) 0.17% 0.19%*
- -------------------------------------------------------------------------
SUPPLEMENTAL DATA
- -------------------------------------------------------------------------
Net assets, end of period (000 omitted) $26,263 $10
- -------------------------------------------------------------------------
</TABLE>
* Computed on an annualized basis.
(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 charge
or contingent deferred sales charge, if applicable.
(c) 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, 1997
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
- ---------- ------------------------------------------------------------------ -----------
<C> <C> <S> <C>
CORPORATE BONDS--17.4%
- ------------------------------------------------------------------------------------
CONSUMER DURABLES--3.0%
------------------------------------------------------------------
$ 900,000 Ford Motor Co., 9.00%, 9/15/2001 $ 965,205
------------------------------------------------------------------ -----------
FINANCE--4.9%
------------------------------------------------------------------
815,000 Countrywide Funding Corp., Company Guarantee, 6.28%, 1/15/2003 782,677
------------------------------------------------------------------
810,000 International Lease Finance Corp., 5.46%, 3/10/2000 783,181
------------------------------------------------------------------ -----------
Total 1,565,858
------------------------------------------------------------------ -----------
INDUSTRIAL SERVICES--6.2%
------------------------------------------------------------------
1,000,000 Lucent Technologies, Inc., 7.25%, 7/15/2006 1,005,970
------------------------------------------------------------------
950,000 WMX Technologies, Inc., 7.10%, 8/1/2026 957,933
------------------------------------------------------------------ -----------
Total 1,963,903
------------------------------------------------------------------ -----------
TELECOMMUNICATIONS--3.3%
------------------------------------------------------------------
1,000,000 AT&T Corp., 7.75%, 3/1/2007 1,037,500
------------------------------------------------------------------ -----------
TOTAL CORPORATE BONDS (IDENTIFIED COST $5,481,900) 5,532,466
------------------------------------------------------------------ -----------
GOVERNMENT AGENCIES--27.8%
- ------------------------------------------------------------------------------------
FEDERAL HOME LOAN MORTGAGE CORPORATION--1.9%
------------------------------------------------------------------
620,000 6.79%, 5/24/2001 617,619
------------------------------------------------------------------ -----------
FEDERAL NATIONAL MORTGAGE ASSOCIATION--7.3%
------------------------------------------------------------------
1,000,000 8.50%, 2/1/2005 1,037,120
------------------------------------------------------------------
869,465 REMIC, 9.50%, 6/25/2018 924,416
------------------------------------------------------------------
335,683 REMIC, 9.50%, 7/25/2019 357,287
------------------------------------------------------------------ -----------
Total 2,318,823
------------------------------------------------------------------ -----------
GOVERNMENT NATIONAL MORTGAGE ASSOCIATION--18.6%
------------------------------------------------------------------
1,262,793 7.50%, 5/15/2026 1,252,930
------------------------------------------------------------------
4,494,940 8.50%, 2/15/2027 4,654,881
------------------------------------------------------------------ -----------
Total 5,907,811
------------------------------------------------------------------ -----------
TOTAL GOVERNMENT AGENCIES (IDENTIFIED COST $8,830,894) 8,844,253
------------------------------------------------------------------ -----------
</TABLE>
RIMCO MONUMENT BOND FUND
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
- ---------- ------------------------------------------------------------------ -----------
<C> <C> <S> <C>
U.S. TREASURY OBLIGATIONS--46.6%
- ------------------------------------------------------------------------------------
U.S. TREASURY BONDS--13.2%
------------------------------------------------------------------
$2,585,000 6.25%, 8/15/2023 $ 2,341,441
------------------------------------------------------------------
1,975,000 6.50%, 11/15/2026 1,853,735
------------------------------------------------------------------ -----------
Total 4,195,176
------------------------------------------------------------------ -----------
U.S. TREASURY NOTES--33.4%
------------------------------------------------------------------
2,017,000 5.875%, 2/15/2004 1,932,871
------------------------------------------------------------------
1,280,000 6.25%, 10/31/2001 1,265,203
------------------------------------------------------------------
2,715,000 6.25%, 4/30/2001 2,690,239
------------------------------------------------------------------
2,785,000 6.25%, 7/31/1998 2,792,241
------------------------------------------------------------------
1,920,000 6.75%, 4/30/2000 1,937,031
------------------------------------------------------------------ -----------
Total 10,617,585
------------------------------------------------------------------ -----------
TOTAL U.S. TREASURY OBLIGATIONS (IDENTIFIED COST $15,017,247) 14,812,761
------------------------------------------------------------------ -----------
(A) REPURCHASE AGREEMENT--7.5%
- ------------------------------------------------------------------------------------
2,372,000 Donaldson, Lufkin and Jenrette Securities Corp., 5.35%, dated
4/30/1997, due 5/1/1997 (AT AMORTIZED COST) 2,372,000
------------------------------------------------------------------ -----------
TOTAL INVESTMENTS (IDENTIFIED COST $31,702,041)(B) $31,561,480
------------------------------------------------------------------ -----------
</TABLE>
(a) The repurchase agreement is 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
$31,710,911. The net unrealized depreciation of investments on a
federal tax basis amounts to $149,431 which is comprised of
$99,602 appreciation and $249,033 depreciation at April 30, 1997.
Note: The categories of investments are shown as a percentage of net assets
($31,829,151) at April 30, 1997.
The following acronym is used throughout this portfolio:
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, 1997
- --------------------------------------------------------------------------------
<TABLE>
<S> <C> <C>
ASSETS:
- --------------------------------------------------------------------------------
Total investments in securities, at value (identified cost
$31,702,041 and tax cost $31,710,911) $31,561,480
- --------------------------------------------------------------------------------
Cash 330
- --------------------------------------------------------------------------------
Income receivable 328,397
- --------------------------------------------------------------------------------
Receivable for shares sold 113,175
- -------------------------------------------------------------------------------- -----------
Total assets 32,003,382
- --------------------------------------------------------------------------------
LIABILITIES:
- --------------------------------------------------------------------------------
Payable for shares redeemed $ 13,028
- ---------------------------------------------------------------------
Income distribution payable 137,347
- ---------------------------------------------------------------------
Accrued expenses 23,856
- --------------------------------------------------------------------- --------
Total liabilities 174,231
- -------------------------------------------------------------------------------- -----------
NET ASSETS for 3,383,560 shares outstanding $31,829,151
- -------------------------------------------------------------------------------- -----------
NET ASSETS CONSIST OF:
- --------------------------------------------------------------------------------
Paid in capital $35,575,305
- --------------------------------------------------------------------------------
Net unrealized depreciation of investments (140,561)
- --------------------------------------------------------------------------------
Accumulated net realized loss on investments (3,646,838)
- --------------------------------------------------------------------------------
Undistributed net investment income 41,245
- -------------------------------------------------------------------------------- -----------
Total Net Assets $31,829,151
- -------------------------------------------------------------------------------- -----------
NET ASSET VALUE and Redemption Proceeds Per Share
($31,829,151 / 3,383,560 shares outstanding) $9.41
- -------------------------------------------------------------------------------- -----------
Offering Price Per Share (100/95.25 of $9.41)* $9.88
- -------------------------------------------------------------------------------- -----------
</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, 1997
- --------------------------------------------------------------------------------
<TABLE>
<S> <C> <C>
INVESTMENT INCOME:
- ---------------------------------------------------------------------------------
Interest $2,463,739
- ---------------------------------------------------------------------------------
EXPENSES:
- ---------------------------------------------------------------------------------
Investment advisory fee $ 255,588
- ---------------------------------------------------------------------
Administrative personnel and services fee 51,473
- ---------------------------------------------------------------------
Transfer and dividend disbursing agent fees and expenses 40,260
- ---------------------------------------------------------------------
Directors'/Trustees' fees 1,410
- ---------------------------------------------------------------------
Auditing fees 13,840
- ---------------------------------------------------------------------
Legal fees 1,563
- ---------------------------------------------------------------------
Portfolio accounting fees 48,511
- ---------------------------------------------------------------------
Share registration costs 6,449
- ---------------------------------------------------------------------
Printing and postage 6,056
- ---------------------------------------------------------------------
Insurance premiums 4,100
- ---------------------------------------------------------------------
Miscellaneous 4,913
- --------------------------------------------------------------------- ---------
Total expenses 434,163
- ---------------------------------------------------------------------
Waiver of investment advisory fee (136,314)
- --------------------------------------------------------------------- ---------
Net expenses 297,849
- --------------------------------------------------------------------------------- ----------
Net investment income 2,165,890
- --------------------------------------------------------------------------------- ----------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:
- ---------------------------------------------------------------------------------
Net realized loss on investments (526,090)
- ---------------------------------------------------------------------------------
Net change in unrealized depreciation of investments 72,263
- --------------------------------------------------------------------------------- ----------
Net realized and unrealized loss on investments (453,827)
- --------------------------------------------------------------------------------- ----------
Change in net assets resulting from operations $1,712,063
- --------------------------------------------------------------------------------- ----------
</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,
----------------------------
1997 1996
------------ -----------
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
- ----------------------------------------------------------------
OPERATIONS--
- ----------------------------------------------------------------
Net investment income $ 2,165,890 $ 2,972,860
- ----------------------------------------------------------------
Net realized gain (loss) on investments ($470,326 net loss and
$695,702 net gain, respectively, as computed for federal tax
purposes) (526,090) 1,109,602
- ----------------------------------------------------------------
Net change in unrealized appreciation/depreciation of
investments 72,263 (693,650)
- ---------------------------------------------------------------- ------------ -----------
Change in net assets resulting from operations 1,712,063 3,388,812
- ---------------------------------------------------------------- ------------ -----------
DISTRIBUTIONS TO SHAREHOLDERS--
- ----------------------------------------------------------------
Distributions from net investment income (2,124,645) (2,998,654)
- ---------------------------------------------------------------- ------------ -----------
SHARE TRANSACTIONS--
- ----------------------------------------------------------------
Proceeds from sale of shares 6,128,321 11,038,098
- ----------------------------------------------------------------
Net asset value of shares issued to shareholders in payment of
distributions declared 345,771 509,532
- ----------------------------------------------------------------
Cost of shares redeemed (25,150,919) (7,839,532)
- ---------------------------------------------------------------- ------------ -----------
Change in net assets resulting from share transactions (18,676,827) 3,708,098
- ---------------------------------------------------------------- ------------ -----------
Change in net assets (19,089,409) 4,098,256
- ----------------------------------------------------------------
NET ASSETS:
- ----------------------------------------------------------------
Beginning of period 50,918,560 46,820,304
- ---------------------------------------------------------------- ------------ -----------
End of period (including undistributed net investment income of
$41,245 and $0, respectively) $ 31,829,151 $50,918,560
- ---------------------------------------------------------------- ------------ -----------
</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,
--------------------------------------------------
1997 1996 1995 1994 1993(A)
------ ------ ------ ------ ------
<S> <C> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD $ 9.47 $ 9.35 $ 9.46 $10.40 $10.00
- ----------------------------------------
INCOME FROM INVESTMENT OPERATIONS
- ----------------------------------------
Net investment income 0.60 0.59 0.56 0.53 0.60
- ----------------------------------------
Net realized and unrealized gain
(loss) on investments (0.07) 0.12 (0.11) (0.38) 0.66
- ---------------------------------------- ------ ------ ------ ------ ------
Total from investment operations 0.53 0.71 0.45 0.15 1.26
- ----------------------------------------
LESS DISTRIBUTIONS
- ----------------------------------------
Distributions from net investment
income (0.59) (0.59) (0.56) (0.53) (0.60)
- ----------------------------------------
Distributions from net realized gains -- -- -- (0.56) (0.26)
- ---------------------------------------- ------ ------ ------ ------ ------
Total distributions (0.59) (0.59) (0.56) (1.09) (0.86)
- ---------------------------------------- ------ ------ ------ ------ ------
NET ASSET VALUE, END OF PERIOD $ 9.41 $ 9.47 $ 9.35 $ 9.46 $10.40
- ---------------------------------------- ------ ------ ------ ------ ------
TOTAL RETURN (B) 5.79% 7.60% 5.01% 1.10% 12.93%
- ----------------------------------------
RATIOS TO AVERAGE NET ASSETS
- ----------------------------------------
Expenses 0.87% 0.80% 0.80% 0.68% 0.50%*
- ----------------------------------------
Net investment income 6.36% 6.04% 6.06% 5.15% 5.95%*
- ----------------------------------------
Expense waiver/reimbursement (c) 0.40% 0.40% 0.40% 0.48% 0.65%*
- ----------------------------------------
SUPPLEMENTAL DATA
- ----------------------------------------
Net assets, end of period (000
omitted) $31,829 $50,919 $46,820 $47,552 $44,668
- ----------------------------------------
Portfolio turnover 171% 128% 262% 344% 371%
- ----------------------------------------
</TABLE>
* Computed on an annualized basis.
(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 charge
or contingent deferred sales charge, if applicable.
(c) 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, 1997
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
- ---------- ------------------------------------------------------------------ -----------
<C> <C> <S> <C>
COMMON STOCKS--94.3%
- ------------------------------------------------------------------------------------
BASIC MATERIALS--5.5%
------------------------------------------------------------------
35,375 Nucor Corporation $ 1,759,906
------------------------------------------------------------------
35,485 Olin Corp. 1,459,321
------------------------------------------------------------------
21,765 Potash Corporation of Saskatchewan, Inc. 1,673,184
------------------------------------------------------------------ -----------
Total 4,892,411
------------------------------------------------------------------ -----------
CAPITAL GOODS--7.4%
------------------------------------------------------------------
37,555 Ingersoll-Rand Co. 1,844,889
------------------------------------------------------------------
16,723 Rockwell International Corp. 1,112,080
------------------------------------------------------------------
16,260 Textron, Inc. 1,810,958
------------------------------------------------------------------
23,980 United Technologies Corp. 1,813,488
------------------------------------------------------------------ -----------
Total 6,581,415
------------------------------------------------------------------ -----------
CONSUMER CYCLICAL--6.3%
------------------------------------------------------------------
60,975 Chrysler Corp. 1,829,250
------------------------------------------------------------------
38,640 Sears, Roebuck & Co. 1,854,720
------------------------------------------------------------------
40,315 TJX Cos., Inc. 1,904,884
------------------------------------------------------------------ -----------
Total 5,588,854
------------------------------------------------------------------ -----------
CONSUMER SERVICES--0.9%
------------------------------------------------------------------
18,610 Tribune Co. 816,514
------------------------------------------------------------------ -----------
CONSUMER STAPLES--10.5%
------------------------------------------------------------------
51,460 American Stores Co. 2,341,430
------------------------------------------------------------------
23,605 ConAgra, Inc. 1,360,238
------------------------------------------------------------------
43,860 Philip Morris Cos., Inc. 1,726,988
------------------------------------------------------------------
49,660 RJR Nabisco Holdings Corp. 1,477,385
------------------------------------------------------------------
20,770 (a) Safeway, Inc. 926,861
------------------------------------------------------------------
7,860 Unilever N.V., ADR 1,542,525
------------------------------------------------------------------ -----------
Total 9,375,427
------------------------------------------------------------------ -----------
</TABLE>
RIMCO MONUMENT STOCK FUND
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
- ---------- ------------------------------------------------------------------ -----------
<C> <C> <S> <C>
COMMON STOCKS--CONTINUED
- ------------------------------------------------------------------------------------
ENERGY--9.4%
------------------------------------------------------------------
6,860 British Petroleum Co. PLC, ADR $ 944,107
------------------------------------------------------------------
27,270 Coastal Corp. 1,295,325
------------------------------------------------------------------
19,860 Columbia Gas System, Inc. 1,228,837
------------------------------------------------------------------
13,275 Mobil Corp. 1,725,750
------------------------------------------------------------------
16,471 Texaco, Inc. 1,737,691
------------------------------------------------------------------
37,365 Tidewater, Inc. 1,499,271
------------------------------------------------------------------ -----------
Total 8,430,981
------------------------------------------------------------------ -----------
FINANCIAL--18.9%
------------------------------------------------------------------
22,465 Ahmanson (H.F.) & Co. 856,478
------------------------------------------------------------------
26,475 American Express Co. 1,744,040
------------------------------------------------------------------
15,040 BankAmerica Corp. 1,757,800
------------------------------------------------------------------
29,317 Franklin Resources, Inc. 1,733,367
------------------------------------------------------------------
25,820 Golden West Financial Corp. 1,678,300
------------------------------------------------------------------
33,190 Great Western Financial Corp. 1,393,980
------------------------------------------------------------------
24,570 ITT Hartford Group, Inc. 1,830,465
------------------------------------------------------------------
25,585 Provident Cos., Inc. 1,429,562
------------------------------------------------------------------
8,515 Student Loan Marketing Association 1,006,899
------------------------------------------------------------------
99,535 USF&G Corp. 1,990,700
------------------------------------------------------------------
28,315 Washington Mutual, Inc. 1,398,054
------------------------------------------------------------------ -----------
Total 16,819,645
------------------------------------------------------------------ -----------
HEALTHCARE--10.5%
------------------------------------------------------------------
28,130 (a) Amgen, Inc. 1,656,154
------------------------------------------------------------------
44,265 Columbia/HCA Healthcare Corp. 1,549,275
------------------------------------------------------------------
21,260 (a) Oxford Health Plans, Inc. 1,400,502
------------------------------------------------------------------
19,825 Perkin-Elmer Corp. 1,439,791
------------------------------------------------------------------
</TABLE>
RIMCO MONUMENT STOCK FUND
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
- ---------- ------------------------------------------------------------------ -----------
<C> <C> <S> <C>
COMMON STOCKS--CONTINUED
- ------------------------------------------------------------------------------------
HEALTHCARE--CONTINUED
------------------------------------------------------------------
18,045 Pfizer, Inc. $ 1,732,320
------------------------------------------------------------------
38,725 (a) Vencor, Inc. 1,611,928
------------------------------------------------------------------ -----------
Total 9,389,970
------------------------------------------------------------------ -----------
MACHINERY & EQUIPMENT--2.1%
------------------------------------------------------------------
21,075 Caterpillar, Inc. 1,875,675
------------------------------------------------------------------ -----------
TECHNOLOGY--12.7%
------------------------------------------------------------------
32,195 (a) Cisco Systems, Inc. 1,666,091
------------------------------------------------------------------
16,760 (a) Compaq Computer Corp. 1,430,885
------------------------------------------------------------------
20,310 Computer Associates International, Inc. 1,056,120
------------------------------------------------------------------
9,220 Intel Corp. 1,411,812
------------------------------------------------------------------
20,650 (a) Seagate Technology, Inc. 947,319
------------------------------------------------------------------
60,070 (a) Sun Microsystems, Inc. 1,730,767
------------------------------------------------------------------
25,920 (a) U.S. Robotics Corp. 1,312,200
------------------------------------------------------------------
28,565 Xerox Corp. 1,756,748
------------------------------------------------------------------ -----------
Total 11,311,942
------------------------------------------------------------------ -----------
TRANSPORTATION--2.0%
------------------------------------------------------------------
23,350 (a) UAL Corp. 1,736,656
------------------------------------------------------------------ -----------
UTILITIES-GAS & ELECTRIC--2.3%
------------------------------------------------------------------
41,180 Edison International 864,780
------------------------------------------------------------------
26,100 FPL Group, Inc. 1,164,712
------------------------------------------------------------------ -----------
Total 2,029,492
------------------------------------------------------------------ -----------
UTILITIES-TELEPHONE--5.8%
------------------------------------------------------------------
46,650 GTE Corp. 2,140,069
------------------------------------------------------------------
75,770 (a) LCI International, Inc. 1,259,676
------------------------------------------------------------------
32,430 SBC Communications, Inc. 1,799,865
------------------------------------------------------------------ -----------
Total 5,199,610
------------------------------------------------------------------ -----------
TOTAL COMMON STOCKS (IDENTIFIED COST $66,628,871) 84,048,592
------------------------------------------------------------------ -----------
</TABLE>
RIMCO MONUMENT STOCK FUND
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL
AMOUNT VALUE
- ---------- ------------------------------------------------------------------ -----------
<C> <C> <S> <C>
(B) REPURCHASE AGREEMENT--6.4%
- ------------------------------------------------------------------------------------
$5,696,000 Donaldson, Lufkin and Jenrette Securities Corp., 5.35%, dated
4/30/1997, due 5/1/1997 (AT AMORTIZED COST) $ 5,696,000
------------------------------------------------------------------ -----------
TOTAL INVESTMENTS (IDENTIFIED COST $72,324,871) (C) $89,744,592
------------------------------------------------------------------ -----------
</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
$72,326,632. The net unrealized appreciation of investments on a
federal tax basis amounts to $17,417,960 which is comprised of
$18,722,548 appreciation and $1,304,588 depreciation at April 30,
1997.
Note: The categories of investments are shown as a percentage of net assets
($89,141,747) at April 30, 1997.
The following acronyms are used throughout this portfolio:
ADR -- American Depository Receipt
PLC -- Public Limited Company
(See Notes which are an integral part of the Financial Statements)
RIMCO MONUMENT STOCK FUND
STATEMENT OF ASSETS AND LIABILITIES
APRIL 30, 1997
- --------------------------------------------------------------------------------
<TABLE>
<S> <C> <C>
ASSETS:
- --------------------------------------------------------------------------------
Total investments in securities, at value (identified cost $72,324,871 and tax
cost $72,326,632) $89,744,592
- --------------------------------------------------------------------------------
Cash 16,233
- --------------------------------------------------------------------------------
Income receivable 74,331
- --------------------------------------------------------------------------------
Receivable for investments sold 238,159
- --------------------------------------------------------------------------------
Receivable for shares sold 42,759
- -------------------------------------------------------------------------------- -----------
Total assets 90,116,074
- --------------------------------------------------------------------------------
LIABILITIES:
- --------------------------------------------------------------------------------
Payable for investments purchased $940,836
- ---------------------------------------------------------------------
Payable for shares redeemed 199
- ---------------------------------------------------------------------
Accrued expenses 33,292
- --------------------------------------------------------------------- --------
Total liabilities 974,327
- -------------------------------------------------------------------------------- -----------
NET ASSETS for 5,782,109 shares outstanding $89,141,747
- -------------------------------------------------------------------------------- -----------
NET ASSETS CONSIST OF:
- --------------------------------------------------------------------------------
Paid-in capital $62,047,764
- --------------------------------------------------------------------------------
Net unrealized appreciation of investments 17,419,721
- --------------------------------------------------------------------------------
Accumulated net realized gain on investments 9,575,322
- --------------------------------------------------------------------------------
Undistributed net investment income 98,940
- -------------------------------------------------------------------------------- -----------
Total Net Assets $89,141,747
- -------------------------------------------------------------------------------- -----------
NET ASSET VALUE and Redemption Proceeds Per Share:
($89,141,747 / 5,782,109 shares outstanding) $15.41
- -------------------------------------------------------------------------------- -----------
Offering Price Per Share (100/94.25 of $15.41)* $16.35
- -------------------------------------------------------------------------------- -----------
</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, 1997
- --------------------------------------------------------------------------------
<TABLE>
<S> <C> <C>
INVESTMENT INCOME:
- --------------------------------------------------------------------------------
Interest $ 174,060
- --------------------------------------------------------------------------------
Dividends 1,631,730
- -------------------------------------------------------------------------------- -----------
Total income 1,805,790
- --------------------------------------------------------------------------------
EXPENSES:
- --------------------------------------------------------------------------------
Investment advisory fee $622,704
- ---------------------------------------------------------------------
Administrative personnel and services fee 106,088
- ---------------------------------------------------------------------
Transfer and dividend disbursing agent fees and expenses 48,893
- ---------------------------------------------------------------------
Directors'/Trustees' fees 1,402
- ---------------------------------------------------------------------
Auditing fees 14,016
- ---------------------------------------------------------------------
Legal fees 2,114
- ---------------------------------------------------------------------
Portfolio accounting fees 43,366
- ---------------------------------------------------------------------
Share registration costs 10,204
- ---------------------------------------------------------------------
Printing and postage 668
- ---------------------------------------------------------------------
Insurance premiums 3,168
- ---------------------------------------------------------------------
Miscellaneous 2,508
- --------------------------------------------------------------------- --------
Total expenses 855,131
- ---------------------------------------------------------------------
Waiver of investment advisory fee (99,633)
- --------------------------------------------------------------------- --------
Net expenses 755,498
- -------------------------------------------------------------------------------- -----------
Net investment income 1,050,292
- -------------------------------------------------------------------------------- -----------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:
- --------------------------------------------------------------------------------
Net realized gain on investments 13,715,852
- --------------------------------------------------------------------------------
Net change in unrealized appreciation of investments (2,163,305)
- -------------------------------------------------------------------------------- -----------
Net realized and unrealized gain on investments 11,552,547
- -------------------------------------------------------------------------------- -----------
Change in net assets resulting from operations $12,602,839
- -------------------------------------------------------------------------------- -----------
</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,
-----------------------------
1997 1996
------------ ------------
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
- ----------------------------------------------------------------
OPERATIONS--
- ----------------------------------------------------------------
Net investment income $ 1,050,292 $ 989,355
- ----------------------------------------------------------------
Net realized gain on investments ($13,717,613 and $12,721,408
respectively, as computed for federal tax purposes) 13,715,852 12,753,787
- ----------------------------------------------------------------
Net change in unrealized appreciation of investments (2,163,305) 8,924,816
- ---------------------------------------------------------------- ------------ ------------
Change in net assets resulting from operations 12,602,839 22,667,958
- ---------------------------------------------------------------- ------------ ------------
DISTRIBUTIONS TO SHAREHOLDERS--
- ----------------------------------------------------------------
Distributions from net investment income (1,013,053) (984,777)
- ----------------------------------------------------------------
Distributions from net realized gains (13,232,044) (4,555,282)
- ---------------------------------------------------------------- ------------ ------------
Change in net assets resulting from distributions to
shareholders (14,245,097) (5,540,059)
- ---------------------------------------------------------------- ------------ ------------
SHARE TRANSACTIONS--
- ----------------------------------------------------------------
Proceeds from sale of shares 23,284,614 18,698,038
- ----------------------------------------------------------------
Net asset value of shares issued to shareholders in payment of
distributions declared 4,358,886 2,382,006
- ----------------------------------------------------------------
Cost of shares redeemed (21,656,846) (19,429,239)
- ---------------------------------------------------------------- ------------ ------------
Change in net assets resulting from share transactions 5,986,654 1,650,805
- ---------------------------------------------------------------- ------------ ------------
Change in net assets 4,344,396 18,778,704
- ----------------------------------------------------------------
NET ASSETS:
- ----------------------------------------------------------------
Beginning of period 84,797,351 66,018,647
- ---------------------------------------------------------------- ------------ ------------
End of period (including undistributed net investment income of
$98,940 and $61,701, respectively) $ 89,141,747 $ 84,797,351
- ---------------------------------------------------------------- ------------ ------------
</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,
--------------------------------------------------
1997 1996 1995 1994 1993(A)
------ ------ ------ ------ ------
<S> <C> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD $15.84 $12.69 $11.89 $10.46 $10.00
- --------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS
- --------------------------------------------------
Net investment income 0.20 0.18 0.20 0.16 0.21
- --------------------------------------------------
Net realized and unrealized gain on investments 2.28 4.00 1.39 1.44 0.46
- -------------------------------------------------- ------ ------ ------ ------ ------
Total from investment operations 2.48 4.18 1.59 1.60 0.67
- -------------------------------------------------- ------ ------ ------ ------ ------
LESS DISTRIBUTIONS
- --------------------------------------------------
Distributions from net investment income (0.20) (0.18) (0.19) (0.16) (0.21)
- --------------------------------------------------
Distributions from net realized gains (2.71) (0.85) (0.60) (0.01) --
- -------------------------------------------------- ------ ------ ------ ------ ------
Total distributions (2.91) (1.03) (0.79) (0.17) (0.21)
- -------------------------------------------------- ------ ------ ------ ------ ------
NET ASSET VALUE, END OF PERIOD $15.41 $15.84 $12.69 $11.89 $10.46
- -------------------------------------------------- ------ ------ ------ ------ ------
TOTAL RETURN (B) 16.34% 33.73% 14.16% 15.28% 6.35%
- --------------------------------------------------
RATIOS TO AVERAGE NET ASSETS
- --------------------------------------------------
Expenses 0.91% 0.96% 0.98% 1.00% 0.69%*
- --------------------------------------------------
Net investment income 1.26% 1.26% 1.66% 1.36% 2.18%*
- --------------------------------------------------
Expense waiver/reimbursement (c) 0.12% 0.12% 0.14% 0.20% 0.47%*
- --------------------------------------------------
SUPPLEMENTAL DATA
- --------------------------------------------------
Net assets, end of period (000 omitted) $89,142 $84,797 $66,019 $58,597 $37,539
- --------------------------------------------------
Average commission rate paid (d) $0.0619 $0.0687 -- -- --
- --------------------------------------------------
Portfolio turnover 75% 81% 46% 89% 92%
- --------------------------------------------------
</TABLE>
* Computed on an annualized basis.
(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 charge
or contingent deferred sales charge, if applicable.
(c) This voluntary expense decrease is reflected in both the expense
and net investment income ratios shown above.
(d) Represents total commissions paid on portfolio securities divided
by total portfolio shares purchased or sold on which commissions
were charged. This disclosure is required for fiscal years
beginning on or after September 1, 1995.
(See Notes which are an integral part of the Financial Statements)
RIMCO MONUMENT SMALL CAPITALIZATION EQUITY FUND
PORTFOLIO OF INVESTMENTS
APRIL 30, 1997
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
- ---------- ------------------------------------------------------------------- -----------
<C> <C> <S> <C>
COMMON STOCKS--89.8%
- -------------------------------------------------------------------------------------
BASIC MATERIALS--5.1%
-------------------------------------------------------------------
12,895 Birmingham Steel Corp. $ 188,589
-------------------------------------------------------------------
15,595 Calgon Carbon Corp. 191,039
-------------------------------------------------------------------
13,860 Elcor Corp. 362,093
-------------------------------------------------------------------
7,615 Medusa Corp. 288,418
-------------------------------------------------------------------
6,615 Oregon Steel Mills 109,147
-------------------------------------------------------------------
11,105 Quanex Corp. 280,401
------------------------------------------------------------------- -----------
Total 1,419,687
------------------------------------------------------------------- -----------
CAPITAL GOODS--5.1%
-------------------------------------------------------------------
18,160 (a) Cable Design Technologies 342,770
-------------------------------------------------------------------
9,445 (a) Exide Electronics Group, Inc. 85,005
-------------------------------------------------------------------
17,755 Greenfield Industries, Inc. 361,758
-------------------------------------------------------------------
24,980 (a) Trident International, Inc. 499,600
-------------------------------------------------------------------
5,630 Zurn Industries, Inc. 139,342
------------------------------------------------------------------- -----------
Total 1,428,475
------------------------------------------------------------------- -----------
CONSUMER CYCLICAL--18.6%
-------------------------------------------------------------------
15,400 Claire's Stores, Inc. 294,525
-------------------------------------------------------------------
16,865 Comair Holdings, Inc. 356,273
-------------------------------------------------------------------
23,885 Flowers Industries, Inc. 582,197
-------------------------------------------------------------------
30,965 (a) Garden Ridge Corp. 251,591
-------------------------------------------------------------------
14,560 (a) General Nutrition Cos., Inc. 313,040
-------------------------------------------------------------------
15,535 (a) Goody's Family Clothing, Inc. 271,862
-------------------------------------------------------------------
63,890 (a) Jumbosports, Inc. 295,491
-------------------------------------------------------------------
24,335 (a) Just For Feet, Inc. 386,318
-------------------------------------------------------------------
3,835 (a) Nine West Group, Inc. 151,962
-------------------------------------------------------------------
17,692 (a) PC Service Source, Inc. 113,892
-------------------------------------------------------------------
</TABLE>
RIMCO MONUMENT SMALL CAPITALIZATION EQUITY FUND
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
- ---------- ------------------------------------------------------------------- -----------
<C> <C> <S> <C>
COMMON STOCKS--CONTINUED
- -------------------------------------------------------------------------------------
CONSUMER CYCLICAL--CONTINUED
-------------------------------------------------------------------
18,450 Pier 1 Imports, Inc. $ 364,387
-------------------------------------------------------------------
20,910 (a) Quaker Fabric Corp. 284,899
-------------------------------------------------------------------
7,180 Quality Food Centers, Inc. 288,097
-------------------------------------------------------------------
23,425 (a) Rare Hospitality International, Inc. 272,316
-------------------------------------------------------------------
13,610 (a) Safeskin Corp. 304,524
-------------------------------------------------------------------
15,581 (a) Suiza Foods Corp. 446,006
-------------------------------------------------------------------
27,635 (a) Sunglass Hut International, Inc. 200,354
------------------------------------------------------------------- -----------
Total 5,177,734
------------------------------------------------------------------- -----------
CONSUMER SERVICES--20.6%
-------------------------------------------------------------------
28,800 Apple South, Inc. 374,400
-------------------------------------------------------------------
34,970 (a) Atlantic Coast Airlines, Inc. 428,383
-------------------------------------------------------------------
27,391 (a) Coast Dental Services, Inc. 383,474
-------------------------------------------------------------------
25,781 HA-LO Industries, Inc. 431,832
-------------------------------------------------------------------
12,952 La Quinta Inns, Inc. 283,325
-------------------------------------------------------------------
7,430 (a) National-Oilwell, Inc. 288,841
-------------------------------------------------------------------
21,035 (a) Scientific Games Holdings Corp. 462,770
-------------------------------------------------------------------
14,484 (a) Source Services Corp. 235,365
-------------------------------------------------------------------
30,991 (a) Synthetic Industries, Inc. 596,577
-------------------------------------------------------------------
11,410 TCA Cable TV, Inc. 365,120
-------------------------------------------------------------------
20,205 (a) Team Rental Group, Inc. 454,613
-------------------------------------------------------------------
20,520 (a) Telco Communications Group, Inc. 400,140
-------------------------------------------------------------------
19,380 (a) U.S. Office Products Co. 494,190
-------------------------------------------------------------------
39,265 (a) VDI Media 245,406
-------------------------------------------------------------------
13,835 York Group, Inc. 266,324
------------------------------------------------------------------- -----------
Total 5,710,760
------------------------------------------------------------------- -----------
CONSUMER STAPLES--1.0%
-------------------------------------------------------------------
31,305 (a) Cott Corp. 290,060
------------------------------------------------------------------- -----------
</TABLE>
RIMCO MONUMENT SMALL CAPITALIZATION EQUITY FUND
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
- ---------- ------------------------------------------------------------------- -----------
<C> <C> <S> <C>
COMMON STOCKS--CONTINUED
- -------------------------------------------------------------------------------------
ENERGY--4.0%
-------------------------------------------------------------------
7,140 (a) BJ Services Co. $ 336,473
-------------------------------------------------------------------
13,435 (a) Patterson Energy Inc. 386,256
-------------------------------------------------------------------
8,685 (a) Seacor Holdings, Inc. 373,455
------------------------------------------------------------------- -----------
Total 1,096,184
------------------------------------------------------------------- -----------
FINANCIAL--13.9%
-------------------------------------------------------------------
20,340 Amresco, Inc. 296,201
-------------------------------------------------------------------
24,485 (a) Dime Bancorp, Inc. 394,821
-------------------------------------------------------------------
14,255 (a) FIRSTPLUS Financial Group, Inc. 315,392
-------------------------------------------------------------------
16,440 Hubco, Inc. 404,835
-------------------------------------------------------------------
23,590 (a) IMC Mortgage Co. 265,387
-------------------------------------------------------------------
45,380 (a) Olympic Financial Ltd. 436,783
-------------------------------------------------------------------
8,475 The PMI Group, Inc. 433,284
-------------------------------------------------------------------
4,035 (a) Silicon Valley Bancshares 141,225
-------------------------------------------------------------------
13,980 Sirrom Capital Corp. 435,128
-------------------------------------------------------------------
5,191 Union Planters Corp. 231,648
-------------------------------------------------------------------
12,320 Vesta Insurance Group, Inc. 514,360
------------------------------------------------------------------- -----------
Total 3,869,064
------------------------------------------------------------------- -----------
HEALTH CARE--9.4%
-------------------------------------------------------------------
28,745 (a) Advance ParadigM, Inc. 326,974
-------------------------------------------------------------------
15,310 Life Technologies, Inc. 388,491
-------------------------------------------------------------------
10,585 (a) Lincare Holdings, Inc. 415,461
-------------------------------------------------------------------
12,690 (a) Multicare Companies, Inc. 236,351
-------------------------------------------------------------------
23,645 (a) NABI, Inc. 141,870
-------------------------------------------------------------------
16,365 (a) Rexall Sundown, Inc. 325,254
-------------------------------------------------------------------
15,470 (a) Steris Corp. 506,643
-------------------------------------------------------------------
21,985 (a) United Payors & United Providers, Inc. 269,316
------------------------------------------------------------------- -----------
Total 2,610,360
------------------------------------------------------------------- -----------
</TABLE>
RIMCO MONUMENT SMALL CAPITALIZATION EQUITY FUND
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL
AMOUNT VALUE
- ---------- ------------------------------------------------------------------ -----------
<C> <C> <S> <C>
COMMON STOCKS--CONTINUED
- ------------------------------------------------------------------------------------
TECHNOLOGY--8.2%
------------------------------------------------------------------
19,425 (a) BTG, Inc. $ 291,375
------------------------------------------------------------------
9,525 (a) Black Box Corp. 225,028
------------------------------------------------------------------
26,230 (a) CHS Electronics, Inc. 498,370
------------------------------------------------------------------
60,780 (a) Compucom System, Inc. 357,083
------------------------------------------------------------------
23,630 (a) Hyperion Software Corp. 383,988
------------------------------------------------------------------
19,485 (a) Inacom Corp. 431,106
------------------------------------------------------------------
10,070 (a) PictureTel Corp. 89,371
------------------------------------------------------------------ -----------
Total 2,276,321
------------------------------------------------------------------ -----------
TRANSPORTATION--1.4%
------------------------------------------------------------------
19,975 (a) Yellow Corp. 384,519
------------------------------------------------------------------ -----------
UTILITIES-GAS & ELECTRIC--1.4%
------------------------------------------------------------------
18,195 TNP Enterprises, Inc. 382,095
------------------------------------------------------------------ -----------
UTILITIES-TELEPHONE--1.1%
------------------------------------------------------------------
19,210 ACC Corp. 304,959
------------------------------------------------------------------ -----------
TOTAL COMMON STOCKS (IDENTIFIED COST $25,511,337) 24,950,218
------------------------------------------------------------------ -----------
(B)REPURCHASE AGREEMENT--8.0%
- ------------------------------------------------------------------------------------
$2,211,000 Donaldson, Lufkin & Jenrette Securities Corp., 5.35%, dated
4/30/1997, due 5/1/1997 (AT AMORTIZED COST) 2,211,000
------------------------------------------------------------------ -----------
TOTAL INVESTMENTS (IDENTIFIED COST $27,722,337)(C) $27,161,218
------------------------------------------------------------------ -----------
</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
$27,875,093. The net unrealized depreciation of investments on a
federal tax basis amounts to $731,875 which is comprised of
$2,426,555 appreciation and $3,140,430 depreciation at April 30,
1997.
Note: The categories of investments are shown as a percentage of net assets
($27,777,127) at April 30, 1997.
(See Notes which are an integral part of the Financial Statements)
RIMCO MONUMENT SMALL CAPITALIZATION EQUITY FUND
STATEMENT OF ASSETS AND LIABILITIES
APRIL 30, 1997
- --------------------------------------------------------------------------------
<TABLE>
<S> <C> <C>
ASSETS:
- ---------------------------------------------------------------------------------
Total investments in securities, at value (identified cost $27,722,337 and tax
cost $27,875,093) $27,161,218
- ---------------------------------------------------------------------------------
Cash 1,938
- ---------------------------------------------------------------------------------
Income receivable 15,062
- ---------------------------------------------------------------------------------
Receivable for investments sold 943,155
- ---------------------------------------------------------------------------------
Receivable for shares sold 90,250
- ---------------------------------------------------------------------------------
Deferred expenses 2,359
- --------------------------------------------------------------------------------- -----------
Total assets 28,213,982
- ---------------------------------------------------------------------------------
LIABILITIES:
- ---------------------------------------------------------------------------------
Payable for investments purchased $ 410,419
- -------------------------------------------------------------------
Payable for shares redeemed 134
- -------------------------------------------------------------------
Accrued expenses 26,302
- ------------------------------------------------------------------- -----------
Total liabilities 436,855
- --------------------------------------------------------------------------------- -----------
NET ASSETS for 2,170,932 shares outstanding $27,777,127
- --------------------------------------------------------------------------------- -----------
NET ASSETS CONSIST OF:
- ---------------------------------------------------------------------------------
Paid in capital $25,541,452
- ---------------------------------------------------------------------------------
Net unrealized depreciation of investments (561,119)
- ---------------------------------------------------------------------------------
Accumulated net realized gain on investments 2,796,794
- --------------------------------------------------------------------------------- -----------
Total Net Assets $27,777,127
- --------------------------------------------------------------------------------- -----------
NET ASSET VALUE and Redemption Proceeds Per Share:
($27,777,127 / 2,170,932 shares outstanding) $12.80
- --------------------------------------------------------------------------------- -----------
Offering Price Per Share (100/94.25 of $12.80)* $13.58
- --------------------------------------------------------------------------------- -----------
</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, 1997
- --------------------------------------------------------------------------------
<TABLE>
<S> <C> <C>
INVESTMENT INCOME:
- --------------------------------------------------------------------------------
Dividends $ 112,848
- --------------------------------------------------------------------------------
Interest 101,540
- -------------------------------------------------------------------------------- -----------
Total income 214,388
- --------------------------------------------------------------------------------
EXPENSES:
- --------------------------------------------------------------------------------
Investment advisory fee $ 184,690
- --------------------------------------------------------------------
Administrative personnel and services fee 49,978
- --------------------------------------------------------------------
Transfer and dividend disbursing agent fees and expenses 30,517
- --------------------------------------------------------------------
Directors'/Trustees' fees 500
- --------------------------------------------------------------------
Auditing fees 13,710
- --------------------------------------------------------------------
Legal fees 653
- --------------------------------------------------------------------
Portfolio accounting fees 41,446
- --------------------------------------------------------------------
Share registration costs 7,912
- --------------------------------------------------------------------
Printing and postage 5,301
- --------------------------------------------------------------------
Insurance premiums 506
- --------------------------------------------------------------------
Miscellaneous 2,373
- -------------------------------------------------------------------- ---------
Total expenses 337,586
- --------------------------------------------------------------------
Waiver of investment advisory fee (105,949)
- -------------------------------------------------------------------- ---------
Net expenses 231,637
- -------------------------------------------------------------------------------- -----------
Net operating loss (17,249)
- -------------------------------------------------------------------------------- -----------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:
- --------------------------------------------------------------------------------
Net realized gain on investments 3,370,741
- --------------------------------------------------------------------------------
Net change in unrealized depreciation of investments (4,671,477)
- -------------------------------------------------------------------------------- -----------
Net realized and unrealized loss on investments (1,300,736)
- -------------------------------------------------------------------------------- -----------
Change in net assets resulting from operations $(1,317,985)
- -------------------------------------------------------------------------------- -----------
</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,
---------------------------
1997 1996
----------- -----------
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
- -----------------------------------------------------------------
OPERATIONS--
- -----------------------------------------------------------------
Net investment loss $ (17,249) $ (19,299)
- -----------------------------------------------------------------
Net realized gain on investments ($3,506,193 and $1,248,100,
respectively, as computed for federal tax purposes) 3,370,741 1,243,022
- -----------------------------------------------------------------
Net change in unrealized appreciation (depreciation) (4,671,477) 3,821,076
- ----------------------------------------------------------------- ----------- -----------
Change in net assets resulting from operations (1,317,985) 5,044,799
- ----------------------------------------------------------------- ----------- -----------
DISTRIBUTIONS TO SHAREHOLDERS--
- -----------------------------------------------------------------
Distributions from net investment income -- (11,338)
- -----------------------------------------------------------------
Distributions from net realized gains (1,336,383) (431,812)
- ----------------------------------------------------------------- ----------- -----------
Change in net assets resulting from distributions to
shareholders (1,336,383) (443,150)
- ----------------------------------------------------------------- ----------- -----------
SHARE TRANSACTIONS--
- -----------------------------------------------------------------
Proceeds from sale of shares 14,668,375 11,178,111
- -----------------------------------------------------------------
Net asset value of shares issued to shareholders in payment of
distributions declared 93,490 10,491
- -----------------------------------------------------------------
Cost of shares redeemed (3,619,751) (4,110,287)
- ----------------------------------------------------------------- ----------- -----------
Change in net assets resulting from share transactions 11,142,114 7,078,315
- ----------------------------------------------------------------- ----------- -----------
Change in net assets 8,487,746 11,679,964
- -----------------------------------------------------------------
NET ASSETS:
- -----------------------------------------------------------------
Beginning of period 19,289,381 7,609,417
- ----------------------------------------------------------------- ----------- -----------
End of period $27,777,127 $19,289,381
- ----------------------------------------------------------------- ----------- -----------
</TABLE>
(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,
----------------------------
1997 1996 1995(A)
------ ------ ------
<S> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD $14.10 $10.43 $10.00
- ---------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS
- ---------------------------------------------------------------------
Net investment income (operating loss) (0.01) (0.02) 0.02
- ---------------------------------------------------------------------
Net realized and unrealized gain (loss) on investments (0.47) 4.05 0.41
- --------------------------------------------------------------------- ------ ------ ------
Total from investment operations (0.48) 4.03 0.43
- ---------------------------------------------------------------------
LESS DISTRIBUTIONS
- ---------------------------------------------------------------------
Distributions from net investment income -- (0.01) --
- ---------------------------------------------------------------------
Distributions from net realized gain on investments (0.82) (0.35) --
- --------------------------------------------------------------------- ------ ------ ------
Total distributions (0.82) (0.36) --
- --------------------------------------------------------------------- ------ ------ ------
NET ASSET VALUE, END OF PERIOD $12.80 $14.10 $10.43
- --------------------------------------------------------------------- ------ ------ ------
TOTAL RETURN (B) (3.76%) 39.43% 4.30%
- ---------------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS
- ---------------------------------------------------------------------
Expenses 1.00% 1.14% 1.66%*
- ---------------------------------------------------------------------
Net investment income (0.07%) (0.13%) 0.98%*
- ---------------------------------------------------------------------
Expense waiver/reimbursement (c) 0.46% 0.80% 1.54%*
- ---------------------------------------------------------------------
SUPPLEMENTAL DATA
- ---------------------------------------------------------------------
Net assets, end of period (000 omitted) $27,777 $19,289 $7,609
- ---------------------------------------------------------------------
Average commission rate paid (d) $0.0691 $0.0650 --
- ---------------------------------------------------------------------
Portfolio turnover 93% 70% 8%
- ---------------------------------------------------------------------
</TABLE>
* Computed on an annualized basis.
(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 charge
or contingent deferred sales charge, if applicable.
(c) This voluntary expense decrease is reflected in both the expense
and net investment income ratios shown above.
(d) Represents total commissions paid on portfolio securities divided
by total portfolio shares purchased or sold on which commissions
were charged. This disclosure is required for fiscal years
beginning on or after September 1, 1995.
(See Notes which are an integral part of the Financial Statements)
RIMCO MONUMENT FUNDS
COMBINED NOTES TO FINANCIAL STATEMENTS
APRIL 30, 1997
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(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>
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PORTFOLIO NAME INVESTMENT OBJECTIVE
<S> <C>
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RIMCO Monument U.S. Treasury Money Market To provide current income consistent with
Fund ("Treasury Fund") stability of principal and liquidity.
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RIMCO Monument Prime Money Market Fund To provide current income
consistent with ("Prime Fund") stability of principal and liquidity.
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RIMCO Monument Bond Fund ("Bond Fund") To achieve current income.
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RIMCO Monument Stock Fund ("Stock Fund") To provide growth of
capital and income.
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RIMCO Monument Small Capitalization Equity
Fund ("Small Capitalization Fund") To provide long-term capital appreciation.
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</TABLE>
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 and asset-backed securities),
and 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 securities purchased with
remaining maturities of sixty days or less may be valued at
amortized cost, which approximates fair market value.
RIMCO MONUMENT FUNDS
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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.
Income and capital gain distributions are determined in
accordance with income tax regulations which may differ from
generally accepted accounting principles. These differences are
primarily due to differing book/tax treatments of net operating
loss and market discount amortization. The following
reclassifications have been made to the financial statements.
<TABLE>
<CAPTION>
INCREASE (DECREASE)
----------------------------------------
ACCUMULATED
UNDISTRIBUTED NET
PAID-IN NET INVESTMENT REALIZED
FUND NAME CAPITAL INCOME GAIN
------------------------------------- ------- -------------- -----------
<S> <C> <C> <C>
Prime Fund $1,749 ($ 1,749) --
Small Capitalization Fund -- 17,249 ($ 17,249)
</TABLE>
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, 1997, the Prime Fund and Bond Fund, for federal tax
purposes, had capital loss carryforwards of $872,003 and
$3,576,333, 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 in 2002
($836,919), 2003
RIMCO MONUMENT FUNDS
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($20,474), and 2005 ($14,610). The capital loss carryforward of the Bond
Fund will expire in 2003 ($3,106,007) and 2005 ($470,326).
Additionally, a net capital loss of $353 for the Prime Fund, and
$62,014 for the Bond Fund, attributable to security transactions
incurred after October 31, 1996, are treated as arising on May 1,
1997, 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 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 over a period not to exceed
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,
1997 1996
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<S> <C> <C>
Shares sold 449,279,619 436,204,901
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Shares issued to shareholders in payment of distributions declared 860,699 773,387
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Shares redeemed (416,232,679) (410,963,751)
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Net change resulting from share transactions 33,907,639 26,014,537
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</TABLE>
RIMCO MONUMENT FUNDS
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<TABLE>
<CAPTION>
PRIME FUND
-------------------------------
YEAR ENDED YEAR ENDED
APRIL 30, APRIL 30,
CLASS A SHARES 1997 1996
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<S> <C> <C>
Shares sold 1,412,757,103 993,934,310
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Shares issued to shareholders in payment of distributions declared 6,512,315 3,827,511
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Shares redeemed (1,414,974,408) (913,943,749)
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Net change resulting from Class A Shares transactions 4,295,010 83,818,072
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</TABLE>
<TABLE>
<CAPTION>
PRIME FUND
-----------------------------
YEAR ENDED PERIOD ENDED
APRIL 30, APRIL 30,
CLASS B SHARES 1997 1996*
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<S> <C> <C>
Shares sold 80,348,400 10,100
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Shares issued to shareholders in payment of distributions declared 209 2
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Shares redeemed (54,095,833) --
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Net change resulting from Class B Shares transactions 26,252,776 10,102
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Net change resulting from share transactions 30,547,786 83,828,174
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</TABLE>
* For the period from December 12, 1995 (date of initial public
investment) to April 30, 1996.
<TABLE>
<CAPTION>
SMALL
CAPITALIZATION FUND
BOND FUND --------------------
---------------------- STOCK FUND YEAR
YEAR ----------------------- YEAR ENDED
YEAR ENDED ENDED YEAR ENDED YEAR ENDED ENDED APRIL
APRIL 30, APRIL 30, APRIL 30, APRIL 30, APRIL 30, 30,
1997 1996 1997 1996 1997 1996
- ---------------------------------------------------- ---------- --------- ---------- ---------- --------- --------
<S> <C> <C> <C> <C> <C> <C>
Shares sold 648,055 1,124,984 1,490,755 1,281,444 1,058,741 975,448
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Shares issued to shareholders in payment of
distributions declared 36,491 52,178 290,990 162,712 6,849 889
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Shares redeemed (2,679,358) (803,997) (1,352,718) (1,293,310) (262,516) (338,047)
- --------------------------------------------------- --------- -------- --------- --------- -------- -------
Net change resulting from share transactions (1,994,812) 373,165 429,027 150,846 803,074 638,290
- --------------------------------------------------- --------- -------- --------- --------- -------- -------
</TABLE>
(4) INVESTMENT ADVISORY FEE AND OTHER TRANSACTIONS WITH AFFILIATES
INVESTMENT ADVISORY FEE--Riggs Investment Management Corp., the
Trust's investment adviser (the "Adviser"), receives for its services
an annual investment advisory fee based on a percentage of each Fund's
average daily net assets (see below). The Adviser may voluntarily
choose to waive a portion of its fee. The Adviser can modify or
terminate this voluntary waiver at any time at its sole discretion.
RIMCO MONUMENT FUNDS
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<TABLE>
<CAPTION>
ANNUAL
FUND RATE
--------------------------------------------------------- ------
<S> <C>
Treasury Fund 0.50%
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Prime Fund 0.50%
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Bond Fund 0.75%
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Stock Fund 0.75%
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Small Capitalization Fund 0.80%
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</TABLE>
ADMINISTRATIVE FEE--Federated Administrative Services ("FAS") provides
the Trust with certain administrative personnel and services. The FAS
fee is based on the level of average aggregate net assets of the Trust
for the period.
DISTRIBUTION SERVICES FEE--Prime Fund has adopted a Distribution Plan
(the "Plan") pursuant to Rule 12b-1 under the Act. Under the terms of
the Plan, Prime Fund will compensate Federated Securities Corp.
("FSC"), the principal distributor, from the net assets of Class B
Shares of the Prime Fund to finance activities intended to result in
the sale of the Prime Fund's Class B Shares. The Plan provides that
the Prime Fund may incur distribution expenses up to 0.50% of the
average daily net assets of the Class B Shares, annually, to
compensate FSC.
TRANSFER AGENT AND DIVIDEND DISBURSING AGENT FEES--Federated Services
Company ("FServ"), through its subsidiary, Federated Shareholder
Services Company ("FSSC"), serves as transfer and dividend disbursing
agent for the Funds. The fee paid to FSSC is based on the size, type,
and number of accounts and transactions made by shareholders.
PORTFOLIO ACCOUNTING FEES--FServ maintains the Funds' 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 Funds' 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
RIMCO MONUMENT FUNDS
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Fund's effective date. For the year ended April 30, 1997, 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, 1997
- ------------------------------- ------------------ -------------- -----------------------
<S> <C> <C> <C>
Treasury Fund July 30, 1991 $ 50,507 $ 2,208
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Bond Fund July 30, 1991 29,704 5,776
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Stock Fund July 30, 1991 30,877 6,004
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Small Capitalization Fund February 6, 1995 22,693 6,298
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</TABLE>
GENERAL--Certain of the Officers and Trustees of the Trust are
Officers and Directors or Trustees of the above companies.
(5) INVESTMENT TRANSACTIONS
Purchases and sales of investments, excluding short-term obligations,
for the year ended April 30, 1997, were as follows:
<TABLE>
<CAPTION>
FUND PURCHASES SALES
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<S> <C> <C>
Bond Fund $55,759,568 $73,110,248
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Stock Fund $60,569,351 $69,980,219
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Small Capitalization Fund $28,709,442 $19,948,845
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</TABLE>
REPORT OF ERNST & YOUNG LLP, INDEPENDENT AUDITORS
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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 Monument Prime Money Market Fund,
RIMCO Monument U.S. Treasury Money Market Fund, RIMCO Monument Bond
Fund, RIMCO Monument Small Capitalization Equity Fund and RIMCO
Monument Stock Fund portfolios) as of April 30, 1997, 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 the periods presented. 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 audit
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, 1997, 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, 1997, 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 period presented in
conformity with generally accepted accounting principles.
ERNST & YOUNG LLP
Pittsburgh, Pennsylvania
June 18, 1997
<TABLE>
<S> <C>
TRUSTEES OFFICERS
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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 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
investment risk, including possible loss of principal. Although money
market funds seek to maintain a stable net asset value of $1.00 per
share, there is no assurance that they will be able to do so.
This report is authorized for distribution to prospective investors
only when preceded or accompanied by the Funds' prospectus which
contains facts concerning the Funds' objective and policies,
management fees, expenses and other information.
A1. The graphic presentation here displayed consists of a line graph.
The corresponding components of the line graph are listed in the upper
left quadrant. RIMCO Monument Bond Fund is represented by a solid
line. The Lehman Brothers Govt./Corp. Total Index is represented by a
dotted line. The line graph is a visual representation of a comparison
of change in value of a $10,000 hypothetical investment in the fund
and the Lehman Brothers Govt./Corp. Total Index. The "x" axis reflects
computation periods from 5/11/92 to 4/30/97. The "y" axis reflects the
cost of the investment. The right margin reflects the ending value of
the hypothetical investment in the fund as compared to the Lehman
Brothers Govt./Corp. Total Index. The ending values were $13,182 and
$14,359, respectively.
A2. The graphic presentation here displayed consists of a line graph.
The corresponding components of the line graph are listed in the upper
left quadrant. RIMCO Monument Stock Fund is represented by a solid
line. The Standard & Poor's 500 Index is represented by a dotted line.
The line graph is a visual representation of a comparison of change in
value of a $10,000 hypothetical investment in the fund and the
Standard & Poor's 500 Index. The "x" axis reflects computation periods
from 5/11/92 to 4/30/97. The "y" axis reflects the cost of the
investment. The right margin reflects the ending value of the
hypothetical investment in the fund as compared to the Standard &
Poor's 500 Index. The ending values were $21,097 and $21,985,
respectively.
A3. The graphic presentation here displayed consists of a line graph.
The corresponding components of the line graph are listed in the upper
left quadrant. RIMCO Monument Small Capitalization Equity Fund is
represented by a solid line. The Russell 2000 Index is represented by
a dotted line. The line graph is a visual representation of a
comparison of change in value of a $10,000 hypothetical investment in
the fund and the Russell 2000 Index. The "x" axis reflects computation
periods from 2/27/95 to 4/30/97. The "y" axis reflects the cost of the
investment. The right margin reflects the ending value of the
hypothetical investment in the fund as compared to the Russell 2000
Index. The ending values were $13,506 and $14,518, respectively.
