<PAGE>
- -----------------------------------------------------------------------------
RIMCO
- -----------------------------------------------------------------------------
MONUMENT
- -----------------------------------------------------------------------------
FUNDS
- -----------------------------------------------------------------------------
- -----------------------------------------------------------------------------
COMBINED SEMI-ANNUAL
REPORT TO SHAREHOLDERS
OCTOBER 31, 1997
RIMCO U.S. Treasury Money Market Fund
RIMCO PRIME MONEY MARKET Fund
RIMCO Bond Fund
RIMCO Stock Fund
RIMCO Small Capitalization Equity Fund
Riggs Investment Management Corp. (RIMCO)
- -------------------------------------------
Investment Adviser
Federated Securities Corp.
- ------------------------------------------- Mutual Funds are not FDIC
Distributor insured and are not deposits
or obligations of or
Cusip 766730501 guaranteed by Riggs Bank N.A.
Cusip 766730303 They involve investment risks,
Cusip 766730105 including the possible loss of
Cusip 766730402 the principal amount invested.
Cusip 766730600
Cusip 766730204
1111202A (12/97) [LOGO]
<PAGE>
PRESIDENT'S MESSAGE
- --------------------------------------------------------------------------------
Dear Investor:
I am pleased to present the Semi-Annual Report for the RIMCO Monument Funds for
the six-month period ending October 31, 1997. It begins with an investment
commentary by each portfolio manager, followed by a complete list of holdings
and the financial statements for each fund.
The following highlights summarize fund performance over the six-month period:
RIMCO MONUMENT U.S. TREASURY MONEY MARKET FUND
This is the most conservative RIMCO Monument fund, which is managed to help
shareholders earn daily income on their ready cash. The fund's portfolio of U.S.
Treasury money market securities paid a total of $0.02 per share in dividends
over the reporting period. Net assets in the fund totaled $135 million at the
end of the period.*
RIMCO MONUMENT PRIME MONEY MARKET FUND
This fund helps shareholders earn daily income on their ready cash through a
portfolio of high-quality money market securities. The fund's Class A Shares
paid dividends totaling $0.03 per share while Class B Shares paid dividends
totaling $0.02 per share. The fund ended the period with net assets of $339
million.*
RIMCO MONUMENT BOND FUND
This fund's well-diversified bond portfolio paid dividends totaling $0.28 per
share, while its net asset value rose from $9.41 to $9.76. The dividends and net
asset value increase resulted in a total return of 6.82% (1.73% adjusted for the
fund's sales charge).** Net assets in the fund stood at $32.0 million at the end
of the period, and were invested across corporate bonds (32.4%), government
agency securities (37.5%) and U.S. Treasury obligations (29.2%).
RIMCO MONUMENT STOCK FUND
During the period, the fund's diversified portfolio of high-quality
stocks--which included many household names such as American Express, Intel,
Merck, Mobil, Sears, Unilever, and Xerox--produced a strong total return of
16.36% (9.67% adjusted for the fund's sales charge).** This return was the
result of a substantial increase in net asset value of $15.41 to $17.86, and
$0.07 per share in dividend income. The fund's net assets reached $103 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 this fund is neither insured nor guaranteed by the U.S.
government.
** Performance quoted reflects 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.
<PAGE>
RIMCO MONUMENT SMALL CAPITALIZATION EQUITY FUND
As the most aggressive fund in the RIMCO Monument family, the fund invests in
carefully selected stocks issued by small companies.+ It rewarded shareholders
with an extremely high return of 49.22% (40.65% adjusted for the fund's sales
charge).** A very high level of growth in the fund's net asset value--from
$12.80 to $19.10--accounted for the total return. At the end of the period, fund
assets reached $44 million.
Thank you for selecting one of the RIMCO Monument Funds--or a combination--to
pursue your financial goals. We hope you are pleased with your progress.
Sincerely,
LOGO
Edward C. Gonzales
President
December 15, 1997
** Performance quoted reflects 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.
<PAGE>
INVESTMENT REVIEW
- --------------------------------------------------------------------------------
RIMCO MONUMENT PRIME MONEY MARKET FUND ("PRIME FUND")
RIMCO MONUMENT U.S. TREASURY MONEY MARKET FUND ("TREASURY FUND")
In our April 30, 1997 investment review, our expectation going forward was for
short-term rates to trade narrowly, for economic activity to moderate, and for
the Federal Reserve (the "Fed") to leave the federal funds rate unchanged. While
this is what did transpire, it was not without some surprises along the way.
Gross Domestic Product ("GDP") growth remained stubbornly in the 3% to 4% range
over the past six months given our very low unemployment rate. Indeed, with the
strong growth came high monthly payroll gains, a drop in the unemployment rate
to 4.7%, and rising expectations of a Fed tightening. However, continued
excellent inflation numbers gave the Fed the latitude to wait and see. Perhaps
more importantly, sharply declining currencies in Asia (which tends to make
foreign-produced goods cheaper) led the expectation of further disinflationary
pressure from abroad and moderately lower GDP growth estimates in the U.S., both
of which may have assured the Fed's inactivity.
The result from all of this, we believe, was exceptionally low short-term
interest rate volatility for corporate money market instruments. From April 30
through October 30, the discount rate on 90 day top tier commercial paper fell
within a tight 18 basis point range, between 5.48 and 5.66. Commercial paper
maturing in 180 days was only slightly more volatile, ranging 27 basis points
from 5.49 to 5.76. Duration on the Prime Fund was maintained between
approximately 60 and 75 days, with duration added on the modest rate backups.
The investment environment was more unusual for the Treasury Fund. While
commercial paper traded narrowly, three-month T-bills showed much greater
volatility, with the yield ranging between 4.84% and 5.33%. Six-month T-bills
showed similar volatility, with yields ranging between 5.14% and 5.63%. What was
unusual about this was how low these rates became, in light of an official
federal funds rate of 5.5%. With overnight Treasury-backed repo (the overnight
cash vehicle used by both Prime and Treasury Funds) trading consistently around
the 5.4% range, it made little sense to invest in three-month or six-month
T-bills for much of the last six months. Consequently, cash positions
(Treasury-backed repo) remained unusually high, and Treasury Fund duration
remained in the area of 40 days.
Currently we believe the Fed is on hold, given a building consensus of
moderating economic growth and well-behaved inflation going forward.
RIMCO MONUMENT BOND FUND ("BOND FUND")
Following the Bond Fund's year-end in April, the rise in rates seen in the first
calendar quarter continued. In late May, thirty-year T-Bond yields peaked at
7.03%, as strong economic and employment growth continued to fuel inflation
concerns. But as each passing month showed consistently good inflation news for
both consumer and producer price indices, T-Bonds returned to the 6.5% area.
This was consistent with our expectation for rates expressed in our last
investment review. And while we feel that economic and employment activity
remained uncomfortably high for the Fed, significant changes occurred overseas
in September that altered, for now at least, our view of where we expect bonds
to trade. Significant currency devaluations (purposeful or otherwise) throughout
the Far East and Latin America (including sizable trading partners such as
Korea, Japan, and Mexico), a sudden rise in concern over the liquidity of some
of these markets, and sharp declines in their respective stock markets prompted
1) a classic flight to quality (i.e., U.S. Treasury securities), 2) a
significant widening in credit spreads world-wide, 3) an immediate cut in U.S.
and world GDP estimates, and 4) the renewed disinflationary pressure.
<PAGE>
INVESTMENT REVIEW
- --------------------------------------------------------------------------------
This change in landscape led us to step aside from any Fed-tightening bias we
might have been considering. Duration has been generally kept either on
benchmark or slightly long of benchmark since these developments appeared. As of
October 30, T-Bond yields were trading within one basis point of their yearly
lows of 6.13%. While from a valuation standpoint we are relatively neutral
towards bonds at these levels, we would not be surprised if the momentum of
world events took rates below 6%. Should the turmoil of world markets subside
significantly from this point, however, we expect bond market participants to
begin to focus once again on U.S. economic fundamentals. Given the current level
of rates generally, it is clear that a fair amount of the disinflation scenario
has already been priced into bonds.
RIMCO MONUMENT STOCK FUND ("STOCK FUND")
RIMCO MONUMENT SMALL CAPITALIZATION EQUITY FUND ("SMALL CAPITALIZATION EQUITY
FUND")
The Stock Fund and the Small Capitalization Equity Fund continued to provide
solid returns to our shareholders for the six-month period ended October 31,
1997. During this time, the Stock Fund generated a total return of 16.36% based
on net asset value, while the Small Capitalization Equity Fund generated a total
return of 49.22% based on net asset value.*
Our investment philosophy in managing both equity 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 six months, we continued to maintain broad diversification among
industries. In the Stock Fund, companies in the technology and finance sectors
added significantly to performance, which was partially offset by weakness in
the health care sector. Examples of core holdings in the Stock Fund that were
propelled by superior earnings growth included: Computer Associates, up 42%;
H.F. Ahmanson, up 55%; and TJX Companies, up 25%.
The Small Capitalization Equity Fund experienced strong stock performance across
virtually all industry groups. In particular, stocks in the consumer cyclical
and finance sectors rose, due in part to a benign interest rate environment and
improved consumer confidence. Noteworthy are the contributions from Amresco, up
115%; Comair, up 74%; and Hyperion Software, up 135%.
While the environment for stocks has been very favorable, the markets have
become extremely volatile. Global changes have made competition more intense and
will magnify the importance of strong management. The broadening-out of the
markets over the past six months has been a healthy trend, and we remain
positive on the markets going forward. However, we temper our optimism with our
belief that earnings growth trends will moderate from the torrid pace of the
past few years.
Through all market environments, we believe that our disciplined focus on
undervalued companies with solid earnings growth should continue to reward
shareholders.
* Performance quoted reflects 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 9.67%. Total return for the Small Capitalization Equity
Fund based on offering price for the same time period was 40.65%.
<PAGE>
RIMCO MONUMENT U.S. TREASURY MONEY MARKET FUND
PORTFOLIO OF INVESTMENTS
OCTOBER 31, 1997 (UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
- ----------- ----------------------------------------------------------------- ------------
<C> <C> <S> <C>
U.S. TREASURY OBLIGATIONS--22.1%
- ----------------------------------------------------------------------------------
U.S. TREASURY BILL--7.3%
-----------------------------------------------------------------
$10,000,000 3/5/1998 $ 9,812,622
-----------------------------------------------------------------
U.S. TREASURY NOTE--14.8%
-----------------------------------------------------------------
20,000,000 6.125%, 3/31/1998 20,045,755
----------------------------------------------------------------- ------------
TOTAL U.S. TREASURY OBLIGATIONS 29,858,377
----------------------------------------------------------------- ------------
(A) REPURCHASE AGREEMENTS--78.3%
- ----------------------------------------------------------------------------------
25,000,000 Dean Witter Reynolds, Inc., 5.620%, dated 10/31/1997, due
11/3/1997 25,000,000
-----------------------------------------------------------------
40,414,000 Donaldson, Lufkin and Jenrette Securities Corp., 5.670%, dated
10/31/1997, due 11/3/1997 40,414,000
-----------------------------------------------------------------
40,414,000 Prudential Securities, Inc., 5.620%, dated 10/31/1997, due
11/3/1997 40,414,000
----------------------------------------------------------------- ------------
TOTAL REPURCHASE AGREEMENTS 105,828,000
----------------------------------------------------------------- ------------
TOTAL INVESTMENTS (AT AMORTIZED COST)(B) $135,686,377
----------------------------------------------------------------- ------------
</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
($135,221,570) at
October 31, 1997.
(See Notes which are an integral part of the Financial Statements)
<PAGE>
RIMCO MONUMENT U.S. TREASURY MONEY MARKET FUND
STATEMENT OF ASSETS AND LIABILITIES
OCTOBER 31, 1997 (UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<S> <C> <C>
ASSETS:
- --------------------------------------------------------------------------------
Investments in repurchase agreements $105,828,000
- -----------------------------------------------------------------
Investments in securities 29,858,377
- ----------------------------------------------------------------- ------------
Total investments in securities, at amortized cost and value $135,686,377
- --------------------------------------------------------------------------------
Income receivable 124,269
- --------------------------------------------------------------------------------
Receivable for shares sold 200,331
- -------------------------------------------------------------------------------- ------------
Total assets 136,010,977
- --------------------------------------------------------------------------------
LIABILITIES:
- --------------------------------------------------------------------------------
Payable for shares redeemed 200,331
- -----------------------------------------------------------------
Income distribution payable 583,999
- -----------------------------------------------------------------
Payable to Bank 5,077
- ----------------------------------------------------------------- ------------
Total liabilities 789,407
- -------------------------------------------------------------------------------- ------------
NET ASSETS for 135,221,570 shares outstanding $135,221,570
- -------------------------------------------------------------------------------- ------------
NET ASSET VALUE, Offering Price and Redemption Proceeds Per
Share:
$135,221,570 / 135,221,570 shares outstanding $1.00
- -------------------------------------------------------------------------------- ------------
</TABLE>
(See Notes which are an integral part of the Financial Statements)
<PAGE>
RIMCO MONUMENT U.S. TREASURY MONEY MARKET FUND
STATEMENT OF OPERATIONS
SIX MONTHS ENDED OCTOBER 31, 1997 (UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<S> <C> <C>
INVESTMENT INCOME:
- ---------------------------------------------------------------------------------
Interest $4,053,377
- ---------------------------------------------------------------------------------
EXPENSES:
- ---------------------------------------------------------------------------------
Investment advisory fee $367,956
- ----------------------------------------------------------------------
Administrative personnel and services fee 93,624
- ----------------------------------------------------------------------
Transfer and dividend disbursing agent fees and expenses 16,818
- ----------------------------------------------------------------------
Directors'/Trustees' fees 855
- ----------------------------------------------------------------------
Auditing fees 7,467
- ----------------------------------------------------------------------
Legal fees 1,464
- ----------------------------------------------------------------------
Portfolio accounting fees 21,268
- ----------------------------------------------------------------------
Share registration costs 7,763
- ----------------------------------------------------------------------
Printing and postage 3,296
- ----------------------------------------------------------------------
Insurance premiums 1,765
- ----------------------------------------------------------------------
Miscellaneous 1,402
- ---------------------------------------------------------------------- --------
Total expenses 523,678
- ----------------------------------------------------------------------
Waiver of investment advisory fee (88,309)
- ---------------------------------------------------------------------- --------
Net expenses 435,369
- --------------------------------------------------------------------------------- ----------
Net investment income $3,618,008
- --------------------------------------------------------------------------------- ----------
</TABLE>
(See Notes which are an integral part of the Financial Statements)
<PAGE>
RIMCO MONUMENT U.S. TREASURY MONEY MARKET FUND
STATEMENT OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SIX MONTHS ENDED
(UNAUDITED) YEAR ENDED
OCTOBER 31, 1997 APRIL 30, 1997
---------------- --------------
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
- ---------------------------------------------------------
OPERATIONS--
- ---------------------------------------------------------
Net investment income $ 3,618,008 $ 6,367,255
- --------------------------------------------------------- ---------------- -------------
DISTRIBUTIONS TO SHAREHOLDERS--
- ---------------------------------------------------------
Distributions from net investment income (3,618,008) (6,367,255)
- --------------------------------------------------------- ---------------- -------------
SHARE TRANSACTIONS--
- ---------------------------------------------------------
Proceeds from sale of shares 122,499,890 449,279,619
- ---------------------------------------------------------
Net asset value of shares issued to shareholders in
payment of distributions declared 599,218 860,699
- ---------------------------------------------------------
Cost of shares redeemed (128,888,819) (416,232,679)
- --------------------------------------------------------- ---------------- -------------
Change in net assets resulting from share
transactions (5,789,711) 33,907,639
- --------------------------------------------------------- ---------------- -------------
Change in net assets (5,789,711) 33,907,639
- ---------------------------------------------------------
NET ASSETS:
- ---------------------------------------------------------
Beginning of period 141,011,281 107,103,642
- --------------------------------------------------------- ---------------- -------------
End of period $ 135,221,570 $ 141,011,281
- --------------------------------------------------------- ---------------- -------------
</TABLE>
(See Notes which are an integral part of the Financial Statements)
<PAGE>
RIMCO MONUMENT U.S. TREASURY MONEY MARKET FUND
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
(FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD)
<TABLE>
<CAPTION>
SIX MONTHS
ENDED
(UNAUDITED)
OCTOBER 31, YEAR ENDED APRIL 30,
----------- --------------------------------------------------
1997 1997 1996 1995 1994 1993
----------- ------ ------ ------ ------ ------
<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 0.02 0.05 0.05 0.04 0.03 0.03
- -------------------------------- -------- ------ ------ ------ ------ ------
LESS DISTRIBUTIONS
- --------------------------------
Distributions from net
investment income (0.02) (0.05) (0.05) (0.04) (0.03) (0.03)
- -------------------------------- -------- ------ ------ ------ ------ ------
NET ASSET VALUE, END OF PERIOD $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
- -------------------------------- -------- ------ ------ ------ ------ ------
TOTAL RETURN (A) 2.52% 4.83% 5.28% 4.39% 2.64% 2.92%
- --------------------------------
RATIOS TO AVERAGE NET ASSETS
- --------------------------------
Expenses 0.59%* 0.57% 0.60% 0.60% 0.56% 0.52%
- --------------------------------
Net investment income 4.92%* 4.74% 5.17% 4.33% 2.61% 2.86%
- --------------------------------
Expense waiver/ reimbursement
(b) 0.12%* 0.13% 0.18% 0.20% 0.16% 0.29%
- --------------------------------
SUPPLEMENTAL DATA
- --------------------------------
Net assets, end of period (000
omitted) $135,222 $141,011 $107,104 $81,089 $106,948 $86,875
- --------------------------------
</TABLE>
* Computed on an annualized basis.
(a) Based on net asset value, which does not reflect the sales charge or
contingent deferred sales charge, if applicable.
(b) This voluntary expense decrease is reflected in both the expense and net
investment income ratios shown above.
(See Notes which are an integral part of the Financial Statements)
<PAGE>
RIMCO MONUMENT PRIME MONEY MARKET FUND
PORTFOLIO OF INVESTMENTS
OCTOBER 31, 1997 (UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
- ----------- ---------------------------------------------------------------- ------------
<C> <C> <S> <C>
ASSET-BACKED SECURITIES--5.0%
- -----------------------------------------------------------------------------------
$ 7,000,000 Asset Backed Securities Investment Trust 1997-A, 5.675%,
2/15/1998 $ 7,000,701
----------------------------------------------------------------
10,000,000 Asset Backed Security Investment Trust, 5.625%, 11/13/1997 10,000,000
---------------------------------------------------------------- ------------
TOTAL ASSET-BACKED SECURITIES 17,000,701
---------------------------------------------------------------- ------------
CORPORATE BONDS--64.3%
- -----------------------------------------------------------------------------------
BANKING--9.7%
----------------------------------------------------------------
10,000,000 American Express Centurion Bank, DE, 5.616%, 9/25/1998 10,000,000
----------------------------------------------------------------
10,000,000 NBD Bank, Indiana, 7.50%, 2/28/1998 10,056,382
----------------------------------------------------------------
13,000,000 U.S. Bank, NA, Minneapolis, 5.495%, 11/17/1997 12,990,802
---------------------------------------------------------------- ------------
Total 33,047,184
---------------------------------------------------------------- ------------
CONSUMER NON-DURABLES--0.3%
----------------------------------------------------------------
950,000 Philip Morris Cos., Inc., 6.375%, 1/15/1998 950,806
---------------------------------------------------------------- ------------
ELECTRONIC TECHNOLOGY--1.7%
----------------------------------------------------------------
5,850,000 International Business Machines Corp., 5.65%-6.375%, 11/1/1997-
1/22/1998 5,844,074
---------------------------------------------------------------- ------------
FINANCE--31.1%
----------------------------------------------------------------
6,900,000 American General Finance Corp., 5.65%-7.625%,
2/23/1998-3/30/1998 6,902,595
----------------------------------------------------------------
2,630,000 Associates Corp. of North America, 6.125%-7.30%,
12/30/1997-3/15/1998 2,637,423
----------------------------------------------------------------
3,000,000 Avco Financial Services, Inc., 5.50%, 5/1/1998 2,995,379
----------------------------------------------------------------
15,000,000 Bear Stearns Cos., Inc., 5.626%, 9/3/1998 15,000,000
----------------------------------------------------------------
16,000,000 CISCO, Inc., 5.577%-5.592%, 12/2/1997-12/10/1997 15,916,824
----------------------------------------------------------------
7,725,000 CIT Group Holdings, Inc., 5.875%-6.125%, 9/1/1998-11/9/1998 7,722,423
----------------------------------------------------------------
850,000 Citicorp, 10.15%, 2/15/1998 860,000
----------------------------------------------------------------
2,000,000 Fleet Mortgage Group, Inc., 7.25%, 1/15/1998 2,005,540
----------------------------------------------------------------
6,000,000 Ford Capital BV, 9.125%-9.375%, 1/1/1998-5/1/1998 6,044,366
----------------------------------------------------------------
7,000,000 Household Finance Corp., 6.00%-7.50%, 3/10/1998-6/30/1998 7,012,521
----------------------------------------------------------------
</TABLE>
<PAGE>
RIMCO MONUMENT PRIME MONEY MARKET FUND
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
- ----------- ---------------------------------------------------------------- ------------
<C> <C> <S> <C>
CORPORATE BONDS--CONTINUED
- -----------------------------------------------------------------------------------
FINANCE--CONTINUED
----------------------------------------------------------------
$14,200,000 Merrill Lynch & Co., Inc., 5.606%-9.00%, 5/1/1998-7/28/1998 $ 14,264,269
----------------------------------------------------------------
3,715,000 Morgan Stanley Group, Inc., 9.25%, 3/1/1998 3,755,951
----------------------------------------------------------------
1,465,000 NationsBank Corp., 5.125%, 9/15/1998 1,455,959
----------------------------------------------------------------
2,000,000 Norwest Corp., 7.70%, 11/15/1997 2,001,455
----------------------------------------------------------------
16,000,000 PHH Corp., 5.605%-5.646%, 10/31/1997-11/17/1997 15,999,788
----------------------------------------------------------------
1,000,000 Sears Overseas Financial, 0.00%, 7/12/1998 960,517
---------------------------------------------------------------- ------------
Total 105,535,010
---------------------------------------------------------------- ------------
FINANCE--AUTOMOTIVE--11.3%
----------------------------------------------------------------
15,500,000 Chrysler Financial Corp., 5.875%-8.33%, 11/10/1997-7/7/1998 15,526,231
----------------------------------------------------------------
8,000,000 Ford Motor Credit Corp., 6.25%-9.250%, 2/3/1998-6/15/1998 8,026,219
----------------------------------------------------------------
14,900,000 General Motors Acceptance Corp., 5.875%-7.625%,
1/26/1998-6/24/1998 14,911,308
---------------------------------------------------------------- ------------
Total 38,463,758
---------------------------------------------------------------- ------------
FINANCE--EQUIPMENT--3.6%
----------------------------------------------------------------
8,010,000 General Electric Capital Corp., 5.50%-8.625%,
3/12/1998-8/18/1998 8,014,291
----------------------------------------------------------------
4,115,000 International Lease Finance Corp., 5.20%-8.35%,
3/1/1998-10/1/1998 4,152,385
---------------------------------------------------------------- ------------
Total 12,166,676
---------------------------------------------------------------- ------------
FINANCE--RETAIL--1.5%
----------------------------------------------------------------
5,000,000 Sears, Roebuck & Co., 7.40%, 3/2/1998 5,018,031
---------------------------------------------------------------- ------------
FINANCE--INSURANCE--3.0%
----------------------------------------------------------------
10,000,000 Allstate Life Insurance Co., GIC, 5.786%, 11/1/1997 10,000,000
---------------------------------------------------------------- ------------
FOOD & BEVERAGE--1.8%
----------------------------------------------------------------
6,000,000 PepsiCo, Inc., 5.80%-6.125%, 1/15/1998-8/31/1998 5,995,445
---------------------------------------------------------------- ------------
INDUSTRIAL SERVICES--0.3%
----------------------------------------------------------------
1,000,000 WMX Technologies, Inc., 8.125%, 2/1/1998 1,005,572
---------------------------------------------------------------- ------------
TOTAL CORPORATE BONDS 218,026,556
---------------------------------------------------------------- ------------
</TABLE>
<PAGE>
RIMCO MONUMENT PRIME MONEY MARKET FUND
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
- ----------- ---------------------------------------------------------------- ------------
<C> <C> <S> <C>
GOVERNMENT AGENCIES--23.3%
- -----------------------------------------------------------------------------------
(A) FEDERAL HOME LOAN BANK--5.9%
----------------------------------------------------------------
$20,000,000 5.755%-5.875%, 2/26/1998-2/27/1998 $ 20,000,000
---------------------------------------------------------------- ------------
(A) FEDERAL NATIONAL MORTGAGE ASSOCIATION--0.3%
----------------------------------------------------------------
1,250,000 5.280%, 11/4/1997 1,248,149
---------------------------------------------------------------- ------------
(A) STUDENT LOAN MARKETING ASSOCIATION--17.1%
----------------------------------------------------------------
57,875,000 5.28%-5.45%, 11/4/1997-11/10/1997 57,845,754
---------------------------------------------------------------- ------------
TOTAL GOVERNMENT AGENCIES 79,093,903
---------------------------------------------------------------- ------------
(B)REPURCHASE AGREEMENTS--6.6%
- -----------------------------------------------------------------------------------
11,261,000 Donaldson, Lufkin and Jenrette Securities Corp., 5.670%, dated
10/31/1997, due 11/3/1997 11,261,000
----------------------------------------------------------------
11,260,000 Prudential Securities, Inc., 5.620%, dated 10/31/1997, due
11/3/1997 11,260,000
---------------------------------------------------------------- ------------
TOTAL REPURCHASE AGREEMENTS 22,521,000
---------------------------------------------------------------- ------------
TOTAL INVESTMENTS (AT AMORTIZED COST)(C) $336,642,160
---------------------------------------------------------------- ------------
</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
($338,962,879) at October 31, 1997.
The following acronym is used throughout this portfolio:
GIC -- Guaranteed Investment Contract
(See Notes which are an integral part of the Financial Statements)
<PAGE>
RIMCO MONUMENT PRIME MONEY MARKET FUND
STATEMENT OF ASSETS AND LIABILITIES
OCTOBER 31, 1997 (UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<S> <C> <C>
ASSETS:
- ----------------------------------------------------------------------------
Investments in repurchase agreements $ 22,521,000
- ------------------------------------------------------------
Investments in securities 314,121,160
- ------------------------------------------------------------ ------------
Total investments in securities, at amortized cost and value $336,642,160
- ----------------------------------------------------------------------------
Cash 882,191
- ----------------------------------------------------------------------------
Income receivable 4,007,592
- ---------------------------------------------------------------------------- ------------
Total assets 341,531,943
- ----------------------------------------------------------------------------
LIABILITIES:
- ----------------------------------------------------------------------------
Payable for investments purchased 994,687
- ------------------------------------------------------------
Income distribution payable 1,538,218
- ------------------------------------------------------------
Accrued expenses 36,159
- ------------------------------------------------------------ ------------
Total liabilities 2,569,064
- ---------------------------------------------------------------------------- ------------
NET ASSETS for 339,255,471 shares outstanding $338,962,879
- ---------------------------------------------------------------------------- ------------
NET ASSETS CONSIST OF:
- ----------------------------------------------------------------------------
Paid in capital $339,258,876
- ----------------------------------------------------------------------------
Undistributed net investment income 578,296
- ----------------------------------------------------------------------------
Accumulated net realized loss on investments (874,293)
- ---------------------------------------------------------------------------- ------------
Total Net Assets $338,962,879
- ---------------------------------------------------------------------------- ------------
NET ASSET VALUE, Offering Price and Redemption Proceeds Per Share:
- ----------------------------------------------------------------------------
Class A Shares:
- ----------------------------------------------------------------------------
$338,812,860 / 339,105,483 shares outstanding $1.00
- ---------------------------------------------------------------------------- ------------
Class B Shares:
- ----------------------------------------------------------------------------
$150,019 / 149,988 shares outstanding $1.00
- ---------------------------------------------------------------------------- ------------
</TABLE>
(See Notes which are an integral part of the Financial Statements)
<PAGE>
RIMCO MONUMENT PRIME MONEY MARKET FUND
STATEMENT OF OPERATIONS
SIX MONTHS ENDED OCTOBER 31, 1997 (UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<S> <C> <C> <C>
INVESTMENT INCOME:
- -----------------------------------------------------------------------------------
Interest $10,227,043
- -----------------------------------------------------------------------------------
EXPENSES:
- -----------------------------------------------------------------------------------
Investment advisory fee $ 905,459
- ---------------------------------------------------------------------
Administrative personnel and services fee 230,385
- ---------------------------------------------------------------------
Transfer and dividend disbursing agent fees and expenses 50,195
- ---------------------------------------------------------------------
Directors'/Trustees' fees 1,069
- ---------------------------------------------------------------------
Auditing fees 7,519
- ---------------------------------------------------------------------
Legal fees 610
- ---------------------------------------------------------------------
Portfolio accounting fees 52,495
- ---------------------------------------------------------------------
Distribution services fee--Class B Shares 29,855
- ---------------------------------------------------------------------
Share registration costs 10,071
- ---------------------------------------------------------------------
Printing and postage 3,721
- ---------------------------------------------------------------------
Insurance premiums 4,033
- ---------------------------------------------------------------------
Miscellaneous 4,443
- --------------------------------------------------------------------- ----------
Total expenses 1,299,855
- ---------------------------------------------------------------------
Waivers--
- ---------------------------------------------------------------------
Waiver of investment advisory fee $(307,856)
- ---------------------------------------------------------
Waiver of distribution services fee--Class B Shares (908)
- --------------------------------------------------------- ---------
Total waivers (308,764)
- --------------------------------------------------------------------- ----------
Net expenses 991,091
- ----------------------------------------------------------------------------------- -----------
Net investment income 9,235,952
- ----------------------------------------------------------------------------------- -----------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:
- -----------------------------------------------------------------------------------
Net realized loss on investments (3,685)
- ----------------------------------------------------------------------------------- -----------
Change in net assets resulting from operations $ 9,232,267
- ----------------------------------------------------------------------------------- -----------
</TABLE>
(See Notes which are an integral part of the Financial Statements)
<PAGE>
RIMCO MONUMENT PRIME MONEY MARKET FUND
STATEMENT OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SIX MONTHS ENDED
(UNAUDITED) YEAR ENDED
OCTOBER 31, 1997 APRIL 30, 1997
---------------- ---------------
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
- -------------------------------------------------------
OPERATIONS--
- -------------------------------------------------------
Net investment income $ 9,235,952 $ 19,498,561
- -------------------------------------------------------
Net realized gain (loss) on investments ($3,685 net
loss and $14,610 net loss, respectively, as computed
for federal tax purposes) (3,685) 2,503
- ------------------------------------------------------- ---------------- ---------------
Change in net assets resulting from operations 9,232,267 19,501,064
- ------------------------------------------------------- ---------------- ---------------
DISTRIBUTIONS TO SHAREHOLDERS--
- -------------------------------------------------------
Distributions from net investment income
- -------------------------------------------------------
Class A Shares (8,966,947) (19,005,740)
- -------------------------------------------------------
Class B Shares (269,005) (495,896)
- ------------------------------------------------------- ---------------- ---------------
Change in net assets resulting from distributions
to shareholders (9,235,952) (19,501,636)
- ------------------------------------------------------- ---------------- ---------------
SHARE TRANSACTIONS--
- -------------------------------------------------------
Proceeds from sale of shares 775,378,054 1,493,105,503
- -------------------------------------------------------
Net asset value of shares issued to shareholders in
payment of distributions declared 2,760,394 6,512,524
- -------------------------------------------------------
Cost of shares redeemed (837,471,571) (1,469,070,241)
- ------------------------------------------------------- ---------------- ---------------
Change in net assets resulting from share
transactions (59,333,123) 30,547,786
- ------------------------------------------------------- ---------------- ---------------
Change in net assets (59,336,808) 30,547,214
- -------------------------------------------------------
NET ASSETS:
- -------------------------------------------------------
Beginning of period 398,299,687 367,752,473
- ------------------------------------------------------- ---------------- ---------------
End of period (including undistributed net investment
income of $578,296 and $578,296, respectively) $ 338,962,879 $ 398,299,687
- ------------------------------------------------------- ---------------- ---------------
</TABLE>
(See Notes which are an integral part of the Financial Statements)
<PAGE>
RIMCO MONUMENT PRIME MONEY MARKET FUND
FINANCIAL HIGHLIGHTS--CLASS A SHARES
- --------------------------------------------------------------------------------
(FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD)
<TABLE>
<CAPTION>
SIX MONTHS
ENDED
(UNAUDITED)
OCTOBER 31, YEAR ENDED APRIL 30,
----------- -------------------------------------------------------
1997 1997 1996 1995 1994 1993
----------- ------ ------ ------ ------ ------
<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 0.03 0.05 0.05 0.047 0.03 0.04
- ------------------------------------
Net realized loss on investments -- -- -- (0.003) -- --
- ------------------------------------ -------- ------ ------ ------ ------ ------
Total from investment operations 0.03 0.05 0.05 0.044 0.03 0.04
- ------------------------------------
LESS DISTRIBUTIONS
- ------------------------------------
Distributions from net investment
income (0.03) (0.05) (0.05) (0.047) (0.03) (0.04)
- ------------------------------------
CAPITAL CONTRIBUTION -- -- -- 0.003 -- --
- ------------------------------------ -------- ------ ------ ------ ------ ------
NET ASSET VALUE, END OF PERIOD $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
- ------------------------------------ -------- ------ ------ ------ ------ ------
TOTAL RETURN (A) 2.60% 5.09% 5.50% 4.84%(b) 3.08% 3.55%
- ------------------------------------
RATIOS TO AVERAGE NET ASSETS
- ------------------------------------
Expenses 0.53%* 0.51% 0.51% 0.44% 0.43% 0.41%
- ------------------------------------
Net investment income 5.12%* 5.00% 5.26% 4.72% 3.02% 3.46%
- ------------------------------------
Expense waiver/reimbursement (c) 0.17%* 0.17% 0.19% 0.24% 0.28% 0.31%
- ------------------------------------
SUPPLEMENTAL DATA
- ------------------------------------
Net assets, end of period (000
omitted) $338,813 $372,037 $367,742 $284,059 $334,765 $277,267
- ------------------------------------
</TABLE>
* Computed on an annualized basis.
(a) Based on net asset value, which does not reflect the sales charge or
contingent deferred sales charge, if applicable.
(b) Total return would have remained at 4.84% absent the capital contribution by
Riggs National Corp.
(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)
<PAGE>
RIMCO MONUMENT PRIME MONEY MARKET FUND
FINANCIAL HIGHLIGHTS--CLASS B SHARES
- --------------------------------------------------------------------------------
(FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD)
<TABLE>
<CAPTION>
SIX MONTHS
ENDED
(UNAUDITED) YEAR ENDED APRIL
OCTOBER 31, 30,
----------- ------------------
1997 1997 1996(A)
----------- ------- -------
<S> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD $ 1.00 $ 1.00 $ 1.00
- -----------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS
- -----------------------------------------------------------
Net investment income 0.02 0.05 0.02
- ----------------------------------------------------------- -------- ------ -------
LESS DISTRIBUTIONS
- -----------------------------------------------------------
Distributions from net investment income (0.02) (0.05) (0.02)
- ----------------------------------------------------------- -------- ------ -------
NET ASSET VALUE, END OF PERIOD $ 1.00 $ 1.00 $ 1.00
- ----------------------------------------------------------- -------- ------ -------
TOTAL RETURN (B) 2.43% 4.57% 0.74%
- -----------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS
- -----------------------------------------------------------
Expenses 1.00%* 1.01% 1.07%*
- -----------------------------------------------------------
Net investment income 4.51%* 4.58% 4.58%*
- -----------------------------------------------------------
Expense waiver/reimbursement (c) 0.18%* 0.17% 0.19%*
- -----------------------------------------------------------
SUPPLEMENTAL DATA
- -----------------------------------------------------------
Net assets, end of period (000 omitted) $ 150 $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)
<PAGE>
RIMCO MONUMENT BOND FUND
PORTFOLIO OF INVESTMENTS
OCTOBER 31, 1997 (UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
- ---------- ------------------------------------------------------------------ -----------
<C> <C> <S> <C>
CORPORATE BONDS--32.4%
- ------------------------------------------------------------------------------------
FINANCE--29.1%
------------------------------------------------------------------
$1,100,000 Americredit Automobile Receivables Trust 1997-C, Class A3, 6.30%,
7/5/2003 $ 1,112,815
------------------------------------------------------------------
1,500,000 Barnett Auto Trust 1997-A, Class A2, 5.92%, 7/15/2000 1,504,815
------------------------------------------------------------------
3,000,000 Chevron Capital USA, Inc., Deb., 9.75%, 7/15/2017 3,159,660
------------------------------------------------------------------
815,000 Countrywide Funding Corp., Company Guarantee, 6.28%, 1/15/2003 813,826
------------------------------------------------------------------
900,000 Deutsche Bank Financial, Inc., Bank Guarantee, 6.70%, 12/13/2006 911,124
------------------------------------------------------------------
1,000,000 EQCC Home Equity Loan Trust 1997-3, Class A8, 6.41%, 12/15/2004 1,005,310
------------------------------------------------------------------
810,000 International Lease Finance Corp., Note, 5.46%, 3/10/2000 799,381
------------------------------------------------------------------ -----------
Total 9,306,931
------------------------------------------------------------------ -----------
INDUSTRIAL SERVICES--3.3%
------------------------------------------------------------------
1,000,000 Lucent Technologies, Inc., Note, 7.25%, 7/15/2006 1,064,160
------------------------------------------------------------------ -----------
TOTAL CORPORATE BONDS (IDENTIFIED COST $10,103,643) 10,371,091
------------------------------------------------------------------ -----------
GOVERNMENT AGENCIES--37.5%
- ------------------------------------------------------------------------------------
FEDERAL HOME LOAN MORTGAGE CORPORATION--4.3%
------------------------------------------------------------------
747,524 6.75%, 1/15/2018 751,180
------------------------------------------------------------------
620,000 6.79%, 5/24/2001 628,537
------------------------------------------------------------------ -----------
Total 1,379,717
------------------------------------------------------------------ -----------
FEDERAL NATIONAL MORTGAGE ASSOCIATION--11.7%
------------------------------------------------------------------
1,469,289 7.50%, 6/1/2012 1,507,402
------------------------------------------------------------------
1,000,000 8.50%, 2/1/2005 1,050,040
------------------------------------------------------------------
775,282 REMIC, 9.50%, 6/25/2018 839,607
------------------------------------------------------------------
304,860 REMIC, 9.50%, 7/25/2019 330,413
------------------------------------------------------------------ -----------
Total 3,727,462
------------------------------------------------------------------ -----------
GOVERNMENT NATIONAL MORTGAGE ASSOCIATION--21.5%
------------------------------------------------------------------
2,970,000 7.50%, 10/15/2027 3,036,825
------------------------------------------------------------------
1,208,167 7.50%, 5/15/2026 1,236,112
------------------------------------------------------------------
</TABLE>
<PAGE>
RIMCO MONUMENT BOND FUND
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
- ---------- ------------------------------------------------------------------ -----------
<C> <C> <S> <C>
GOVERNMENT AGENCIES--CONTINUED
- ------------------------------------------------------------------------------------
GOVERNMENT NATIONAL MORTGAGE ASSOCIATION--CONTINUED
------------------------------------------------------------------
$2,500,000 8.00%, 10/15/2027 $ 2,594,525
------------------------------------------------------------------ -----------
Total 6,867,462
------------------------------------------------------------------ -----------
TOTAL GOVERNMENT AGENCIES (IDENTIFIED COST $11,876,772) 11,974,641
------------------------------------------------------------------ -----------
U.S. TREASURY OBLIGATIONS--29.2%
- ------------------------------------------------------------------------------------
U.S. TREASURY BONDS--19.4%
------------------------------------------------------------------
3,721,000 6.25%, 8/15/2023 3,736,517
------------------------------------------------------------------
2,370,000 6.50%, 11/15/2026 2,470,820
------------------------------------------------------------------ -----------
Total 6,207,337
------------------------------------------------------------------ -----------
U.S. TREASURY NOTES--9.8%
------------------------------------------------------------------
2,115,000 6.25%, 4/30/2001 2,149,623
------------------------------------------------------------------
499,000 6.50%, 5/15/2005 518,351
------------------------------------------------------------------
470,000 6.75%, 4/30/2000 481,492
------------------------------------------------------------------ -----------
Total 3,149,466
------------------------------------------------------------------ -----------
TOTAL U.S. TREASURY OBLIGATIONS (IDENTIFIED COST $8,987,000) 9,356,803
------------------------------------------------------------------ -----------
(A)REPURCHASE AGREEMENT--0.1%
- ------------------------------------------------------------------------------------
32,000 Donaldson, Lufkin and Jenrette Securities Corp., 5.67%, dated
10/31/1997, due 11/3/1997 (AT AMORTIZED COST) 32,000
------------------------------------------------------------------ -----------
TOTAL INVESTMENTS (IDENTIFIED COST $30,999,415)(B) $31,734,535
------------------------------------------------------------------ -----------
</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 $30,999,415. The
net unrealized appreciation of investments on a federal tax basis amounts to
$735,120 which is comprised of $735,120 appreciation and $0 depreciation at
October 31, 1997.
Note: The categories of investments are shown as a percentage of net assets
($31,968,103) at October 31, 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)
<PAGE>
RIMCO MONUMENT BOND FUND
STATEMENT OF ASSETS AND LIABILITIES
OCTOBER 31, 1997 (UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<S> <C> <C>
ASSETS:
- --------------------------------------------------------------------------------
Total investments in securities, at value (identified and tax cost $30,999,415) $31,734,535
- --------------------------------------------------------------------------------
Income receivable 482,580
- -------------------------------------------------------------------------------- -----------
Total assets 32,217,115
- --------------------------------------------------------------------------------
LIABILITIES:
- --------------------------------------------------------------------------------
Income distribution payable $162,805
- ---------------------------------------------------------------------
Payable to Bank 81,199
- ---------------------------------------------------------------------
Accrued expenses 5,008
- --------------------------------------------------------------------- --------
Total liabilities 249,012
- -------------------------------------------------------------------------------- -----------
NET ASSETS for 3,275,008 shares outstanding $31,968,103
- -------------------------------------------------------------------------------- -----------
NET ASSETS CONSIST OF:
- --------------------------------------------------------------------------------
Paid in capital $34,504,539
- --------------------------------------------------------------------------------
Net unrealized appreciation of investments 735,120
- --------------------------------------------------------------------------------
Accumulated net realized loss on investments (3,286,111)
- --------------------------------------------------------------------------------
Undistributed net investment income 14,555
- -------------------------------------------------------------------------------- -----------
Total Net Assets $31,968,103
- -------------------------------------------------------------------------------- -----------
NET ASSET VALUE and Redemption Proceeds Per Share:
Net Asset Value Per Share ($31,968,103 / 3,275,008 shares outstanding) $9.76
- -------------------------------------------------------------------------------- -----------
Offering Price Per Share (100/95.25 of $9.76)* $10.25
- -------------------------------------------------------------------------------- -----------
</TABLE>
* See "What Shares Cost" in the Prospectus.
(See Notes which are an integral part of the Financial Statements)
<PAGE>
RIMCO MONUMENT BOND FUND
STATEMENT OF OPERATIONS
SIX MONTHS ENDED OCTOBER 31, 1997 (UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<S> <C> <C>
INVESTMENT INCOME:
- ---------------------------------------------------------------------------------
Interest $1,078,279
- ---------------------------------------------------------------------------------
EXPENSES:
- ---------------------------------------------------------------------------------
Investment advisory fee $121,904
- ----------------------------------------------------------------------
Administrative personnel and services fee 25,206
- ----------------------------------------------------------------------
Transfer and dividend disbursing agent fees and expenses 18,630
- ----------------------------------------------------------------------
Directors'/Trustees' fees 912
- ----------------------------------------------------------------------
Auditing fees 7,438
- ----------------------------------------------------------------------
Legal fees 1,428
- ----------------------------------------------------------------------
Portfolio accounting fees 22,982
- ----------------------------------------------------------------------
Share registration costs 5,603
- ----------------------------------------------------------------------
Printing and postage 2,898
- ----------------------------------------------------------------------
Insurance premiums 2,066
- ----------------------------------------------------------------------
Miscellaneous 2,460
- ---------------------------------------------------------------------- --------
Total expenses 211,527
- ----------------------------------------------------------------------
Waiver of investment advisory fee (65,015)
- ---------------------------------------------------------------------- --------
Net expenses 146,512
- --------------------------------------------------------------------------------- ----------
Net investment income 931,767
- --------------------------------------------------------------------------------- ----------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:
- ---------------------------------------------------------------------------------
Net realized gain on investments 360,727
- ---------------------------------------------------------------------------------
Net change in unrealized appreciation of investments 875,681
- --------------------------------------------------------------------------------- ----------
Net realized and unrealized gain on investments 1,236,408
- --------------------------------------------------------------------------------- ----------
Change in net assets resulting from operations $2,168,175
- --------------------------------------------------------------------------------- ----------
</TABLE>
(See Notes which are an integral part of the Financial Statements)
<PAGE>
RIMCO MONUMENT BOND FUND
STATEMENT OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SIX MONTHS ENDED
(UNAUDITED) YEAR ENDED
OCTOBER 31, 1997 APRIL 30, 1997
---------------- --------------
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
- --------------------------------------------------------
OPERATIONS--
- --------------------------------------------------------
Net investment income $ 931,767 $ 2,165,890
- --------------------------------------------------------
Net realized gain (loss) on investments ($360,727 net
gain and $470,326 net loss, respectively, as computed
for federal tax purposes) 360,727 (526,090)
- --------------------------------------------------------
Net change in unrealized appreciation 875,681 72,263
- -------------------------------------------------------- -------------- --------------
Change in net assets resulting from operations 2,168,175 1,712,063
- -------------------------------------------------------- -------------- --------------
DISTRIBUTIONS TO SHAREHOLDERS--
- --------------------------------------------------------
Distributions from net investment income (958,457) (2,124,645)
- -------------------------------------------------------- -------------- --------------
SHARE TRANSACTIONS--
- --------------------------------------------------------
Proceeds from sale of shares 6,165,400 6,128,321
- --------------------------------------------------------
Net asset value of shares issued to shareholders in
payment of distributions declared 132,594 345,771
- --------------------------------------------------------
Cost of shares redeemed (7,368,760) (25,150,919)
- -------------------------------------------------------- -------------- --------------
Change in net assets resulting from share
transactions (1,070,766) (18,676,827)
- -------------------------------------------------------- -------------- --------------
Change in net assets 138,952 (19,089,409)
- --------------------------------------------------------
NET ASSETS:
- --------------------------------------------------------
Beginning of period 31,829,151 50,918,560
- -------------------------------------------------------- -------------- --------------
End of period (including undistributed net investment
income of $14,555 and $41,245, respectively) $ 31,968,103 $ 31,829,151
- -------------------------------------------------------- -------------- --------------
</TABLE>
(See Notes which are an integral part of the Financial Statements)
22
<PAGE>
RIMCO MONUMENT BOND FUND
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
(FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD)
<TABLE>
<CAPTION>
SIX MONTHS
ENDED
(UNAUDITED)
OCTOBER 31, YEAR ENDED APRIL 30,
----------- -----------------------------------------------
1997 1997 1996 1995 1994 1993(A)
----------- ------ ------ ------ ------ -------
<S> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD $ 9.41 $ 9.47 $ 9.35 $ 9.46 $10.40 $10.00
- ------------------------------------------
INCOME FROM INVESTMENT OPERATIONS
- ------------------------------------------
Net investment income 0.27 0.60 0.59 0.56 0.53 0.60
- ------------------------------------------
Net realized and unrealized gain (loss)
on investments 0.36 (0.07) 0.12 (0.11) (0.38) 0.66
- ------------------------------------------ -------- ------ ------ ------ ------ -------
Total from investment operations 0.63 0.53 0.71 0.45 0.15 1.26
- ------------------------------------------
LESS DISTRIBUTIONS
- ------------------------------------------
Distributions from net investment income (0.28) (0.59) (0.59) (0.56) (0.53) (0.60)
- ------------------------------------------
Distributions from net realized gain -- -- -- -- (0.56) (0.26)
- ------------------------------------------ -------- ------ ------ ------ ------ -------
Total distributions (0.28) (0.59) (0.59) (0.56) (1.09) (0.86)
- ------------------------------------------ -------- ------ ------ ------ ------ -------
NET ASSET VALUE, END OF PERIOD $ 9.76 $ 9.41 $ 9.47 $ 9.35 $ 9.46 $10.40
- ------------------------------------------ -------- ------ ------ ------ ------ -------
TOTAL RETURN (B) 6.82% 5.79% 7.60% 5.01% 1.10% 12.93%
- ------------------------------------------
RATIOS TO AVERAGE NET ASSETS
- ------------------------------------------
Expenses 0.90%* 0.87% 0.80% 0.80% 0.68% 0.50%*
- ------------------------------------------
Net investment income 5.73%* 6.36% 6.04% 6.06% 5.15% 5.95%*
- ------------------------------------------
Expense waiver/reimbursement (c) 0.40%* 0.40% 0.40% 0.40% 0.48% 0.65%*
- ------------------------------------------
SUPPLEMENTAL DATA
- ------------------------------------------
Net assets, end of period (000 omitted) $31,968 $31,829 $50,919 $46,820 $47,552 $44,668
- ------------------------------------------
Portfolio turnover 96% 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)
<PAGE>
RIMCO MONUMENT STOCK FUND
PORTFOLIO OF INVESTMENTS
OCTOBER 31, 1997 (UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
- ---------- ----------------------------------------------------------------- ------------
<C> <C> <S> <C>
COMMON STOCKS--96.6%
- -----------------------------------------------------------------------------------
BASIC MATERIALS--3.6%
-----------------------------------------------------------------
35,520 Nucor Corporation $ 1,855,920
-----------------------------------------------------------------
23,345 Potash Corporation of Saskatchewan, Inc. 1,912,831
----------------------------------------------------------------- ------------
Total 3,768,751
----------------------------------------------------------------- ------------
CAPITAL GOODS--6.8%
-----------------------------------------------------------------
24,460 Caterpillar, Inc. 1,253,575
-----------------------------------------------------------------
37,447 Ingersoll-Rand Co. 1,458,093
-----------------------------------------------------------------
26,535 TRW, Inc. 1,519,129
-----------------------------------------------------------------
15,175 Textron, Inc. 877,305
-----------------------------------------------------------------
26,880 United Technologies Corp. 1,881,600
----------------------------------------------------------------- ------------
Total 6,989,702
----------------------------------------------------------------- ------------
CONSUMER CYCLICAL--1.5%
-----------------------------------------------------------------
37,680 Sears, Roebuck & Co. 1,577,850
----------------------------------------------------------------- ------------
CONSUMER SERVICES--6.3%
-----------------------------------------------------------------
22,315 (a) HFS, Inc. 1,573,207
-----------------------------------------------------------------
36,225 Hilton Hotels Corp. 1,116,183
-----------------------------------------------------------------
21,965 Tribune Co. 1,210,821
-----------------------------------------------------------------
70,125 (a) USA Waste Services, Inc. 2,594,625
----------------------------------------------------------------- ------------
Total 6,494,836
----------------------------------------------------------------- ------------
CONSUMER STAPLES--16.8%
-----------------------------------------------------------------
102,920 American Stores Co. 2,643,757
-----------------------------------------------------------------
48,430 ConAgra, Inc. 1,458,954
-----------------------------------------------------------------
51,125 Cracker Barrel Old Country Store 1,508,187
-----------------------------------------------------------------
104,950 (a) Office Depot, Inc. 2,164,594
-----------------------------------------------------------------
75,020 Philip Morris Cos., Inc. 2,972,668
-----------------------------------------------------------------
43,830 (a) Safeway, Inc. 2,547,619
-----------------------------------------------------------------
</TABLE>
<PAGE>
RIMCO MONUMENT STOCK FUND
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
- ---------- ----------------------------------------------------------------- ------------
<C> <C> <S> <C>
COMMON STOCKS--CONTINUED
- -----------------------------------------------------------------------------------
CONSUMER STAPLES--CONTINUED
-----------------------------------------------------------------
81,955 TJX Cos., Inc. $ 2,427,917
-----------------------------------------------------------------
31,440 Unilever N.V., ADR 1,678,110
----------------------------------------------------------------- ------------
Total 17,401,806
----------------------------------------------------------------- ------------
ENERGY--10.0%
-----------------------------------------------------------------
13,720 British Petroleum Co. PLC, ADR 1,203,930
-----------------------------------------------------------------
28,600 Coastal Corp. 1,719,575
-----------------------------------------------------------------
30,540 Columbia Gas System, Inc. 2,206,515
-----------------------------------------------------------------
28,050 Mobil Corp. 2,042,391
-----------------------------------------------------------------
35,562 Texaco, Inc. 2,024,811
-----------------------------------------------------------------
32,435 USX Corp. 1,159,551
----------------------------------------------------------------- ------------
Total 10,356,773
----------------------------------------------------------------- ------------
FINANCIAL--18.7%
-----------------------------------------------------------------
28,535 Ahmanson (H.F.) & Co. 1,683,565
-----------------------------------------------------------------
26,515 American Express Co. 2,068,170
-----------------------------------------------------------------
31,440 BankAmerica Corp. 2,247,960
-----------------------------------------------------------------
18,980 BankBoston Corp. 1,538,566
-----------------------------------------------------------------
33,010 First Union Corp. 1,619,553
-----------------------------------------------------------------
24,570 Hartford Financial Services Group, Inc. 1,990,170
-----------------------------------------------------------------
54,010 Provident Cos., Inc. 1,802,584
-----------------------------------------------------------------
17,305 SLM Holding Corp. 2,429,189
-----------------------------------------------------------------
86,440 USF&G Corp. 1,750,410
-----------------------------------------------------------------
31,895 Washington Mutual, Inc. 2,182,814
----------------------------------------------------------------- ------------
Total 19,312,981
----------------------------------------------------------------- ------------
HEALTHCARE--6.9%
-----------------------------------------------------------------
38,480 Columbia/HCA Healthcare Corp. 1,087,060
-----------------------------------------------------------------
66,645 (a) Humana, Inc. 1,399,545
-----------------------------------------------------------------
22,925 Merck & Co., Inc. 2,046,056
-----------------------------------------------------------------
40,500 (a) Oxford Health Plans, Inc. 1,045,406
-----------------------------------------------------------------
</TABLE>
<PAGE>
RIMCO MONUMENT STOCK FUND
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
- ---------- ----------------------------------------------------------------- ------------
<C> <C> <S> <C>
COMMON STOCKS--CONTINUED
- -----------------------------------------------------------------------------------
HEALTHCARE--CONTINUED
-----------------------------------------------------------------
56,120 (a) Vencor, Inc. $ 1,515,240
----------------------------------------------------------------- ------------
Total 7,093,307
----------------------------------------------------------------- ------------
TECHNOLOGY--13.0%
-----------------------------------------------------------------
24,575 (a) Adaptec, Inc. 1,190,351
-----------------------------------------------------------------
13,880 (a) Cisco Systems, Inc. 1,138,594
-----------------------------------------------------------------
16,080 Computer Associates International, Inc. 1,198,965
-----------------------------------------------------------------
18,640 (a) EMC Corp. Mass 1,043,840
-----------------------------------------------------------------
26,445 Intel Corp. 2,036,265
-----------------------------------------------------------------
21,205 International Business Machines Corp. 2,079,415
-----------------------------------------------------------------
31,030 Perkin-Elmer Corp. 1,939,375
-----------------------------------------------------------------
30,725 (a) Storage Technology Corp. 1,803,173
-----------------------------------------------------------------
13,250 Xerox Corp. 1,050,891
----------------------------------------------------------------- ------------
Total 13,480,869
----------------------------------------------------------------- ------------
TRANSPORTATION--3.5%
-----------------------------------------------------------------
23,785 Tidewater, Inc. 1,562,377
-----------------------------------------------------------------
23,425 (a) UAL Corp. 2,052,616
----------------------------------------------------------------- ------------
Total 3,614,993
----------------------------------------------------------------- ------------
UTILITIES-GAS & ELECTRIC--2.2%
-----------------------------------------------------------------
41,180 Edison International 1,055,237
-----------------------------------------------------------------
22,925 FPL Group, Inc. 1,184,936
----------------------------------------------------------------- ------------
Total 2,240,173
----------------------------------------------------------------- ------------
UTILITIES-TELEPHONE--7.3%
-----------------------------------------------------------------
24,435 Ameritech Corp. 1,588,275
-----------------------------------------------------------------
42,965 GTE Corp. 1,823,327
-----------------------------------------------------------------
93,940 (a) LCI International, Inc. 2,430,698
-----------------------------------------------------------------
27,465 SBC Communications, Inc. 1,747,461
----------------------------------------------------------------- ------------
Total 7,589,761
----------------------------------------------------------------- ------------
TOTAL COMMON STOCKS (IDENTIFIED COST $81,327,736) 99,921,802
----------------------------------------------------------------- ------------
</TABLE>
<PAGE>
RIMCO MONUMENT STOCK FUND
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
- ---------- ----------------------------------------------------------------- ------------
<C> <C> <S> <C>
(B)REPURCHASE AGREEMENT--3.6%
- -----------------------------------------------------------------------------------
$3,745,000 Donaldson, Lufkin and Jenrette Securities Corp., 5.67%, dated
10/31/1997, due 11/3/1997 (AT AMORTIZED COST) $ 3,745,000
----------------------------------------------------------------- ------------
TOTAL INVESTMENTS (IDENTIFIED COST $85,072,736)(C) $103,666,802
----------------------------------------------------------------- ------------
</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 $85,072,736. The
net unrealized appreciation of investments on a federal tax basis amounts to
$18,594,066 which is comprised of $20,390,061 appreciation and $1,795,995
depreciation at October 31, 1997.
Note: The categories of investments are shown as a percentage of net assets
($103,499,790) at October 31, 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)
<PAGE>
RIMCO MONUMENT STOCK FUND
STATEMENT OF ASSETS AND LIABILITIES
OCTOBER 31, 1997 (UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<S> <C> <C>
ASSETS:
- -------------------------------------------------------------------------------
Investments in securities, at value (identified cost and tax cost $85,072,736) $103,666,802
- -------------------------------------------------------------------------------
Income receivable 97,544
- -------------------------------------------------------------------------------
Receivable for investments sold 526,056
- ------------------------------------------------------------------------------- ------------
Total assets 104,290,402
- -------------------------------------------------------------------------------
LIABILITIES:
- -------------------------------------------------------------------------------
Payable for investments purchased $766,523
- --------------------------------------------------------------------
Payable to Bank 15,726
- --------------------------------------------------------------------
Accrued expenses 8,363
- -------------------------------------------------------------------- --------
Total liabilities 790,612
- ------------------------------------------------------------------------------- ------------
NET ASSETS for 5,795,289 shares outstanding $103,499,790
- ------------------------------------------------------------------------------- ------------
NET ASSETS CONSIST OF:
- -------------------------------------------------------------------------------
Paid in capital $ 61,888,843
- -------------------------------------------------------------------------------
Net unrealized appreciation of investments 18,594,066
- -------------------------------------------------------------------------------
Accumulated net realized gain on investments 22,979,699
- -------------------------------------------------------------------------------
Undistributed net investment income 37,182
- ------------------------------------------------------------------------------- ------------
Total Net Assets $103,499,790
- ------------------------------------------------------------------------------- ------------
NET ASSET VALUE AND REDEMPTION PROCEEDS PER SHARE:
- -------------------------------------------------------------------------------
$103,499,790 / 5,795,289 shares outstanding $17.86
- ------------------------------------------------------------------------------- ------------
Offering Price Per Share (100/94.25 of $17.86)* $18.95
- ------------------------------------------------------------------------------- ------------
</TABLE>
* See "What Shares Cost" in the Prospectus.
(See Notes which are an integral part of the Financial Statements)
<PAGE>
RIMCO MONUMENT STOCK FUND
STATEMENT OF OPERATIONS
SIX MONTHS ENDED OCTOBER 31, 1997 (UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<S> <C> <C>
INVESTMENT INCOME:
- --------------------------------------------------------------------------------
Dividends $ 736,079
- --------------------------------------------------------------------------------
Interest 96,600
- -------------------------------------------------------------------------------- -----------
Total income 832,679
- --------------------------------------------------------------------------------
EXPENSES:
- --------------------------------------------------------------------------------
Investment advisory fee $395,982
- ---------------------------------------------------------------------
Administrative personnel and services fee 67,169
- ---------------------------------------------------------------------
Transfer and dividend disbursing agent fees and expenses 27,324
- ---------------------------------------------------------------------
Directors'/Trustees' fees 1,104
- ---------------------------------------------------------------------
Auditing fees 7,544
- ---------------------------------------------------------------------
Legal fees 1,380
- ---------------------------------------------------------------------
Portfolio accounting fees 23,368
- ---------------------------------------------------------------------
Share registration costs 5,244
- ---------------------------------------------------------------------
Printing and postage 2,944
- ---------------------------------------------------------------------
Insurance premiums 1,656
- ---------------------------------------------------------------------
Miscellaneous 2,024
- --------------------------------------------------------------------- --------
Total expenses 535,739
- ---------------------------------------------------------------------
Waiver of investment advisory fee (63,357)
- --------------------------------------------------------------------- --------
Net expenses 472,382
- -------------------------------------------------------------------------------- -----------
Net investment income 360,297
- -------------------------------------------------------------------------------- -----------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:
- --------------------------------------------------------------------------------
Net realized gain on investments 13,404,377
- --------------------------------------------------------------------------------
Net change in unrealized appreciation of investments 1,174,345
- -------------------------------------------------------------------------------- -----------
Net realized and unrealized gain on investments 14,578,722
- -------------------------------------------------------------------------------- -----------
Change in net assets resulting from operations $14,939,019
- -------------------------------------------------------------------------------- -----------
</TABLE>
(See Notes which are an integral part of the Financial Statements)
<PAGE>
RIMCO MONUMENT STOCK FUND
STATEMENT OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SIX MONTHS
ENDED
(UNAUDITED) YEAR ENDED
OCTOBER 31, 1997 APRIL 30, 1997
---------------- --------------
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
- --------------------------------------------------------
OPERATIONS--
- --------------------------------------------------------
Net investment income $ 360,297 $ 1,050,292
- --------------------------------------------------------
Net realized gain (loss) on investments ($13,404,377 and
$13,717,613, respectively, as computed for federal tax
purposes) 13,404,377 13,715,852
- --------------------------------------------------------
Net change in unrealized appreciation/depreciation 1,174,345 (2,163,305)
- -------------------------------------------------------- --------------- --------------
Change in net assets resulting from operations 14,939,019 12,602,839
- -------------------------------------------------------- --------------- --------------
DISTRIBUTIONS TO SHAREHOLDERS--
- --------------------------------------------------------
Distributions from net investment income (422,055) (1,013,053)
- --------------------------------------------------------
Distributions from net realized gains -- (13,232,044)
- -------------------------------------------------------- --------------- --------------
Change in net assets resulting from distributions
to shareholders (422,055) (14,245,097)
- -------------------------------------------------------- --------------- --------------
SHARE TRANSACTIONS--
- --------------------------------------------------------
Proceeds from sale of shares 11,256,141 23,284,614
- --------------------------------------------------------
Net asset value of shares issued to shareholders in
payment of distributions declared 129,159 4,358,886
- --------------------------------------------------------
Cost of shares redeemed (11,544,221) (21,656,846)
- -------------------------------------------------------- --------------- --------------
Change in net assets resulting from share
transactions (158,921) 5,986,654
- -------------------------------------------------------- --------------- --------------
Change in net assets 14,358,043 4,344,396
- --------------------------------------------------------
NET ASSETS:
- --------------------------------------------------------
Beginning of period 89,141,747 84,797,351
- -------------------------------------------------------- --------------- --------------
End of period (including undistributed net investment
income of $37,182 and $98,940, respectively) $103,499,790 $ 89,141,747
- -------------------------------------------------------- --------------- --------------
</TABLE>
(See Notes which are an integral part of the Financial Statements)
<PAGE>
RIMCO MONUMENT STOCK FUND
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
(FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD)
<TABLE>
<CAPTION>
SIX MONTHS
ENDED
(UNAUDITED)
OCTOBER 31, YEAR ENDED APRIL 30,
----------- -----------------------------------------------
1997 1997 1996 1995 1994 1993(A)
----------- ------ ------ ------ ------ -------
<S> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD $ 15.41 $15.84 $12.69 $11.89 $10.46 $10.00
- -------------------------------------------
INCOME FROM INVESTMENT OPERATIONS
- -------------------------------------------
Net investment income 0.06 0.20 0.18 0.20 0.16 0.21
- -------------------------------------------
Net realized and unrealized gain on
investments 2.46 2.28 4.00 1.39 1.44 0.46
- ------------------------------------------- -------- ------ ------ ------ ------ -------
Total from investment operations 2.52 2.48 4.18 1.59 1.60 0.67
- ------------------------------------------- -------- ------ ------ ------ ------ -------
LESS DISTRIBUTIONS
- -------------------------------------------
Distributions from net investment income (0.07) (0.20) (0.18) (0.19) (0.16) (0.21)
- -------------------------------------------
Distributions from net realized gain -- (2.71) (0.85) (0.60) (0.01) --
- ------------------------------------------- -------- ------ ------ ------ ------ -------
Total distributions (0.07) (2.91) (1.03) (0.79) (0.17) (0.21)
- ------------------------------------------- -------- ------ ------ ------ ------ -------
NET ASSET VALUE, END OF PERIOD $ 17.86 $15.41 $15.84 $12.69 $11.89 $10.46
- ------------------------------------------- -------- ------ ------ ------ ------ -------
TOTAL RETURN(B) 16.36% 16.34% 33.73% 14.16% 15.28% 6.35%
- -------------------------------------------
RATIOS TO AVERAGE NET ASSETS
- -------------------------------------------
Expenses 0.89%* 0.91% 0.96% 0.98% 1.00% 0.69% *
- -------------------------------------------
Net investment income 0.68%* 1.26% 1.26% 1.66% 1.36% 2.18% *
- -------------------------------------------
Expense waiver/reimbursement (c) 0.12%* 0.12% 0.12% 0.14% 0.20% 0.47% *
- -------------------------------------------
SUPPLEMENTAL DATA
- -------------------------------------------
Net assets, end of period (000 omitted) $103,500 $89,142 $84,797 $66,019 $58,597 $37,539
- -------------------------------------------
Average commission rate paid (d) $0.0624 $0.0619 $0.0687 -- -- --
- -------------------------------------------
Portfolio turnover 47% 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)
<PAGE>
RIMCO MONUMENT SMALL CAPITALIZATION EQUITY FUND
PORTFOLIO OF INVESTMENTS
OCTOBER 31, 1997 (UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
- ---------- ------------------------------------------------------------------ -----------
<C> <C> <S> <C>
COMMON STOCKS--95.2%
- ------------------------------------------------------------------------------------
BASIC MATERIALS--5.6%
------------------------------------------------------------------
20,390 Birmingham Steel Corp. $ 338,984
------------------------------------------------------------------
27,665 Calgon Carbon Corp. 326,793
------------------------------------------------------------------
13,860 Elcor Corp. 506,756
------------------------------------------------------------------
39,620 (a) JLM Industries, Inc. 450,677
------------------------------------------------------------------
7,615 Medusa Corp. 321,734
------------------------------------------------------------------
27,845 (a) Quaker Fabric Corp. 530,795
------------------------------------------------------------------ -----------
Total 2,475,739
------------------------------------------------------------------ -----------
CAPITAL GOODS--9.4%
------------------------------------------------------------------
15,057 (a) Cable Design Technologies, Class A 590,987
------------------------------------------------------------------
21,105 (a) Detection Systems, Inc. 390,442
------------------------------------------------------------------
41,820 (a) ITEQ, Inc. 522,750
------------------------------------------------------------------
15,145 Kuhlman Corp. 528,182
------------------------------------------------------------------
44,557 (a) Middleby Corp. 451,140
------------------------------------------------------------------
33,380 (a) Trident International, Inc. 509,045
------------------------------------------------------------------
17,925 (a) Zebra Technologies Co., Class A 560,156
------------------------------------------------------------------
18,652 Zurn Industries, Inc. 626,008
------------------------------------------------------------------ -----------
Total 4,178,710
------------------------------------------------------------------ -----------
CONSUMER CYCLICAL--14.8%
------------------------------------------------------------------
24,662 Comair Holdings, Inc. 906,328
------------------------------------------------------------------
35,827 Flowers Industries, Inc. 680,713
------------------------------------------------------------------
14,560 (a) General Nutrition Cos., Inc. 458,640
------------------------------------------------------------------
38,875 (a) Goody's Family Clothing, Inc. 1,018,039
------------------------------------------------------------------
24,335 (a) Just For Feet, Inc. 360,462
------------------------------------------------------------------
15,785 (a) Nine West Group, Inc. 557,408
------------------------------------------------------------------
29,288 (a) Pacific Sunwear of California 809,067
------------------------------------------------------------------
</TABLE>
<PAGE>
RIMCO MONUMENT SMALL CAPITALIZATION EQUITY FUND
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
- ---------- ------------------------------------------------------------------ -----------
<C> <C> <S> <C>
COMMON STOCKS--CONTINUED
- ------------------------------------------------------------------------------------
CONSUMER CYCLICAL--CONTINUED
------------------------------------------------------------------
16,255 (a) Quality Food Centers, Inc. $ 774,144
------------------------------------------------------------------
10,870 (a) Suiza Foods Corp. 547,576
------------------------------------------------------------------
54,755 (a) Sunglass Hut International, Inc. 438,040
------------------------------------------------------------------ -----------
Total 6,550,417
------------------------------------------------------------------ -----------
CONSUMER SERVICES--21.7%
------------------------------------------------------------------
38,680 Apple South, Inc. 720,415
------------------------------------------------------------------
38,890 (a) Atlantic Coast Airlines, Inc. 821,551
------------------------------------------------------------------
16,920 (a) Budget Group, Inc., Class A 592,200
------------------------------------------------------------------
17,235 La Quinta Inns, Inc. 308,076
------------------------------------------------------------------
36,825 (a) Mesaba Holdings, Inc. 759,516
------------------------------------------------------------------
7,430 (a) National-Oilwell, Inc. 568,859
------------------------------------------------------------------
29,910 (a) Performance Food Group Co. 553,335
------------------------------------------------------------------
16,200 (a) Ryanair Holdings PLC, ADR 405,000
------------------------------------------------------------------
24,790 (a) ScanSource, Inc. 492,701
------------------------------------------------------------------
21,720 (a) Synthetic Industries, Inc. 608,160
------------------------------------------------------------------
46,693 (a) The A Consulting Team, Inc. 560,316
------------------------------------------------------------------
47,124 (a) Trailer Bridge, Inc. 541,926
------------------------------------------------------------------
19,380 (a) U.S. Office Products Co. 605,625
------------------------------------------------------------------
11,595 (a) United Stationers, Inc. 469,598
------------------------------------------------------------------
50,095 (a) VDI Media 576,093
------------------------------------------------------------------
17,415 (a) Valassis Communication, Inc. 513,743
------------------------------------------------------------------
22,745 York Group, Inc. 528,821
------------------------------------------------------------------ -----------
Total 9,625,935
------------------------------------------------------------------ -----------
ENERGY--4.5%
------------------------------------------------------------------
27,326 (a) Eagle Geophysical, Inc. 478,205
------------------------------------------------------------------
14,465 (a) SEACOR SMIT, Inc. 942,033
------------------------------------------------------------------
22,787 (a) Swift Energy Co. 591,025
------------------------------------------------------------------ -----------
Total 2,011,263
------------------------------------------------------------------ -----------
</TABLE>
<PAGE>
RIMCO MONUMENT SMALL CAPITALIZATION EQUITY FUND
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
- ---------- ------------------------------------------------------------------ -----------
<C> <C> <S> <C>
COMMON STOCKS--CONTINUED
- ------------------------------------------------------------------------------------
FINANCIAL--17.5%
------------------------------------------------------------------
11,615 Allstate Corp. $ 701,982
------------------------------------------------------------------
21,595 (a) Amresco, Inc. 677,543
------------------------------------------------------------------
24,485 Dime Bancorp, Inc. 587,640
------------------------------------------------------------------
13,925 (a) FIRSTPLUS Financial Group, Inc. 765,875
------------------------------------------------------------------
16,440 Hubco, Inc. 572,317
------------------------------------------------------------------
39,205 (a) IMC Mortgage Co. 681,187
------------------------------------------------------------------
25,546 (a) Imperial Credit Commercial Mortgage Investment Corp. 421,509
------------------------------------------------------------------
23,900 (a) Inspire Insurance Solutions, Inc. 442,150
------------------------------------------------------------------
16,750 John Alden Financial Corp. 459,578
------------------------------------------------------------------
12,435 (a) Silicon Valley Bancshares 679,262
------------------------------------------------------------------
13,605 Sirrom Capital Corp. 685,352
------------------------------------------------------------------
6,635 Vesta Insurance Group, Inc. 385,659
------------------------------------------------------------------
17,642 Weingarten Realty Investors 702,372
------------------------------------------------------------------ -----------
Total 7,762,426
------------------------------------------------------------------ -----------
HEALTHCARE--7.7%
------------------------------------------------------------------
28,745 (a) Advance Paradigm, Inc. 732,997
------------------------------------------------------------------
15,310 Life Technologies, Inc. 470,783
------------------------------------------------------------------
17,150 (a) Lincare Holdings, Inc. 919,669
------------------------------------------------------------------
8,955 (a) Steris Corp. 355,961
------------------------------------------------------------------
17,595 (a) Trigon Healthcare, Inc. 429,978
------------------------------------------------------------------
27,485 (a) United Payors & United Providers, Inc. 508,473
------------------------------------------------------------------ -----------
Total 3,417,861
------------------------------------------------------------------ -----------
TECHNOLOGY SERVICES--9.0%
------------------------------------------------------------------
24,195 (a) CHS Electronics, Inc. 591,265
------------------------------------------------------------------
76,735 (a) Compucom System, Inc. 724,187
------------------------------------------------------------------
20,285 (a) Hyperion Software Corp. 773,366
------------------------------------------------------------------
19,485 (a) Inacom Corp. 600,382
------------------------------------------------------------------
27,050 (a) Infinium Software, Inc. 432,800
------------------------------------------------------------------
</TABLE>
<PAGE>
RIMCO MONUMENT SMALL CAPITALIZATION EQUITY FUND
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
- ---------- ------------------------------------------------------------------ -----------
<C> <C> <S> <C>
COMMON STOCKS--CONTINUED
- ------------------------------------------------------------------------------------
TECHNOLOGY SERVICES--CONTINUED
------------------------------------------------------------------
15,395 (a) MicroTouch Systems, Inc. $ 371,403
------------------------------------------------------------------
26,720 (a) Read-Rite Corp. 531,060
------------------------------------------------------------------ -----------
Total 4,024,463
------------------------------------------------------------------ -----------
TRANSPORTATION--1.4%
------------------------------------------------------------------
20,045 (a) Swift Transportation Co. 641,440
------------------------------------------------------------------ -----------
UTILITIES--0.9%
------------------------------------------------------------------
15,180 UGI Corp. 407,963
------------------------------------------------------------------ -----------
UTILITIES-TELEPHONE--2.7%
------------------------------------------------------------------
19,325 (a) ACC Corp. 765,753
------------------------------------------------------------------
28,381 (a) Startec Global Communications Corp. 422,167
------------------------------------------------------------------ -----------
Total 1,187,920
------------------------------------------------------------------ -----------
TOTAL COMMON STOCKS (IDENTIFIED COST $33,703,251) 42,284,137
------------------------------------------------------------------ -----------
(B)REPURCHASE AGREEMENT--5.7%
- ------------------------------------------------------------------------------------
$2,531,000 Donaldson, Lufkin and Jenrette Securities Corp., 5.67%, dated
10/31/1997, due 11/3/1997 (AT AMORTIZED COST) 2,531,000
------------------------------------------------------------------ -----------
TOTAL INVESTMENTS (IDENTIFIED COST $36,234,251)(C) $44,815,137
------------------------------------------------------------------ -----------
</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 $36,234,251. The
net unrealized appreciation of investments on a federal tax basis amounts to
$8,580,886 which is comprised of $9,423,737 appreciation and $842,851
depreciation at October 31, 1997.
Note: The categories of investments are shown as a percentage of net assets
($44,401,794) at October 31, 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)
<PAGE>
RIMCO MONUMENT SMALL CAPITALIZATION EQUITY FUND
STATEMENT OF ASSETS AND LIABILITIES
OCTOBER 31, 1997 (UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<S> <C> <C>
ASSETS:
- --------------------------------------------------------------------------------
Investments in securities, at value (identified and tax cost $36,234,251) $44,815,137
- --------------------------------------------------------------------------------
Income receivable 16,331
- --------------------------------------------------------------------------------
Receivable for investments sold 59,087
- --------------------------------------------------------------------------------
Deferred expenses 2,072
- -------------------------------------------------------------------------------- -----------
Total assets 44,892,627
- --------------------------------------------------------------------------------
LIABILITIES:
- --------------------------------------------------------------------------------
Payable for investments purchased $484,444
- ---------------------------------------------------------------------
Payable to Bank 6,389
- --------------------------------------------------------------------- --------
Total liabilities 490,833
- -------------------------------------------------------------------------------- -----------
Net Assets for 2,324,737 shares outstanding $44,401,794
- -------------------------------------------------------------------------------- -----------
NET ASSETS CONSIST OF:
- --------------------------------------------------------------------------------
Paid in capital $28,258,106
- --------------------------------------------------------------------------------
Net unrealized appreciation of investments 8,580,886
- --------------------------------------------------------------------------------
Accumulated net realized gain on investments 7,630,941
- --------------------------------------------------------------------------------
Net operating loss (68,139)
- -------------------------------------------------------------------------------- -----------
Total Net Assets $44,401,794
- -------------------------------------------------------------------------------- -----------
NET ASSET VALUE and Redemption Proceeds Per Share:
Net Asset Value Per Share ($44,401,794 / 2,324,737 shares outstanding) $19.10
- -------------------------------------------------------------------------------- -----------
Offering Price Per Share (100/94.25 of $19.10)* $20.27
- -------------------------------------------------------------------------------- -----------
</TABLE>
* See "What Shares Cost" in the Prospectus.
(See Notes which are an integral part of the Financial Statements)
<PAGE>
RIMCO MONUMENT SMALL CAPITALIZATION EQUITY FUND
STATEMENT OF OPERATIONS
SIX MONTHS ENDED OCTOBER 31, 1997 (UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<S> <C> <C>
INVESTMENT INCOME:
- --------------------------------------------------------------------------------
Dividends $ 78,906
- --------------------------------------------------------------------------------
Interest 56,774
- -------------------------------------------------------------------------------- -----------
Total income 135,680
- --------------------------------------------------------------------------------
EXPENSES:
- --------------------------------------------------------------------------------
Investment advisory fee $153,008
- ---------------------------------------------------------------------
Administrative personnel and services fee 26,101
- ---------------------------------------------------------------------
Transfer and dividend disbursing agent fees and expenses 15,932
- ---------------------------------------------------------------------
Directors'/Trustees' fees 943
- ---------------------------------------------------------------------
Auditing fees 7,634
- ---------------------------------------------------------------------
Legal fees 644
- ---------------------------------------------------------------------
Portfolio accounting fees 25,094
- ---------------------------------------------------------------------
Share registration costs 4,522
- ---------------------------------------------------------------------
Printing and postage 3,036
- ---------------------------------------------------------------------
Insurance premiums 1,327
- ---------------------------------------------------------------------
Miscellaneous 2,275
- --------------------------------------------------------------------- --------
Total expenses 240,516
- ---------------------------------------------------------------------
Waiver of investment advisory fee (36,697)
- --------------------------------------------------------------------- --------
Net expenses 203,819
- -------------------------------------------------------------------------------- -----------
Net operating loss (68,139)
- -------------------------------------------------------------------------------- -----------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:
- --------------------------------------------------------------------------------
Net realized gain on investments 4,834,147
- --------------------------------------------------------------------------------
Net change in unrealized appreciation of investments 9,142,005
- -------------------------------------------------------------------------------- -----------
Net realized and unrealized gain on investments 13,976,152
- -------------------------------------------------------------------------------- -----------
Change in net assets resulting from operations $13,908,013
- -------------------------------------------------------------------------------- -----------
</TABLE>
(See Notes which are an integral part of the Financial Statements)
<PAGE>
RIMCO MONUMENT SMALL CAPITALIZATION EQUITY FUND
STATEMENT OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SIX MONTHS
ENDED
(UNAUDITED) YEAR ENDED
OCTOBER 31, 1997 APRIL 30, 1997
---------------- --------------
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
- --------------------------------------------------------
OPERATIONS--
- --------------------------------------------------------
Net operating loss $ (68,139) $ (17,249)
- --------------------------------------------------------
Net realized gain on investments ($4,834,147 and
$3,506,193, respectively, as computed for federal tax
purposes) 4,834,147 3,370,741
- --------------------------------------------------------
Net change in unrealized appreciation/depreciation 9,142,005 (4,671,477)
- -------------------------------------------------------- -------------- -------------
Change in net assets resulting from operations 13,908,013 (1,317,985)
- -------------------------------------------------------- -------------- -------------
DISTRIBUTIONS TO SHAREHOLDERS--
- --------------------------------------------------------
Distributions from net realized gains -- (1,336,383)
- -------------------------------------------------------- -------------- -------------
SHARE TRANSACTIONS--
- --------------------------------------------------------
Proceeds from sale of shares 6,365,116 14,668,375
- --------------------------------------------------------
Net asset value of shares issued to shareholders in
payment of distributions declared -- 93,490
- --------------------------------------------------------
Cost of shares redeemed (3,648,462) (3,619,751)
- -------------------------------------------------------- -------------- -------------
Change in net assets resulting from share
transactions 2,716,654 11,142,114
- -------------------------------------------------------- -------------- -------------
Change in net assets 16,624,667 8,487,746
- --------------------------------------------------------
NET ASSETS:
- --------------------------------------------------------
Beginning of period 27,777,127 19,289,381
- -------------------------------------------------------- -------------- -------------
End of period $ 44,401,794 $ 27,777,127
- -------------------------------------------------------- -------------- -------------
</TABLE>
(See Notes which are an integral part of the Financial Statements)
<PAGE>
RIMCO MONUMENT SMALL CAPITALIZATION EQUITY FUND
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
(FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD)
<TABLE>
<CAPTION>
SIX MONTHS
ENDED
(UNAUDITED)
OCTOBER 31, YEAR ENDED APRIL 30,
----------- -----------------------------
1997 1997 1996 1995(A)
----------- ------ ------ -------
<S> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD $ 12.80 $14.10 $10.43 $10.00
- --------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS
- --------------------------------------------------------
Net investment income (operating loss) (0.03) (0.01) (0.02) 0.02
- --------------------------------------------------------
Net realized and unrealized gain (loss) on investments 6.33 (0.47) 4.05 0.41
- -------------------------------------------------------- -------- ------ ------ -------
Total from investment operations 6.30 (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 $ 19.10 $12.80 $14.10 $10.43
- -------------------------------------------------------- -------- ------ ------ -------
TOTAL RETURN (B) 49.22% (3.76%) 39.43% 4.30%
- --------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS
- --------------------------------------------------------
Expenses 1.07%* 1.00% 1.14% 1.66% *
- --------------------------------------------------------
Net investment income (operating loss) (0.36%)* (0.07%) (0.13%) 0.98% *
- --------------------------------------------------------
Expense waiver/reimbursement (c) 0.19%* 0.46% 0.80% 1.54% *
- --------------------------------------------------------
SUPPLEMENTAL DATA
- --------------------------------------------------------
Net assets, end of period (000 omitted) $44,402 $27,777 $19,289 $7,609
- --------------------------------------------------------
Average commission rate paid (d) $0.0635 $0.0691 $0.0650 --
- --------------------------------------------------------
Portfolio turnover 53% 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)
<PAGE>
\
RIMCO MONUMENT FUNDS
COMBINED NOTES TO FINANCIAL STATEMENTS
OCTOBER 31, 1997 (UNAUDITED)
- --------------------------------------------------------------------------------
(1) ORGANIZATION
RIMCO Monument Funds (the "Trust") is registered under the Investment Company
Act of 1940, as amended (the "Act"), as an open-end management investment
company. The Trust consists of five diversified portfolios (individually
referred to as the "Fund", or collectively as the "Funds") which are presented
herein:
<TABLE>
<S> <C>
- ---------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
PORTFOLIO NAME INVESTMENT OBJECTIVE
<S> <C>
- ---------------------------------------------------------------------------------------------
RIMCO Monument U.S. Treasury Money Market To provide current income consistent with
Fund ("Treasury Fund") stability of principal and liquidity.
- ---------------------------------------------------------------------------------------------
RIMCO Monument Prime Money Market Fund To provide current income consistent
with ("Prime Fund") stability of principal and liquidity.
- ---------------------------------------------------------------------------------------------
RIMCO Monument Bond Fund
("Bond Fund") To achieve current income.
- ---------------------------------------------------------------------------------------------
RIMCO Monument Stock Fund
("Stock Fund") To provide growth of capital and income.
- ---------------------------------------------------------------------------------------------
RIMCO Monument Small Capitalization Equity
Fund ("Small Capitalization Fund") To provide long-term capital appreciation.
- ---------------------------------------------------------------------------------------------
</TABLE>
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. The money market Funds within the Trust, use the
amortized cost method to value portfolio securities 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.
<PAGE>
RIMCO MONUMENT FUNDS
- --------------------------------------------------------------------------------
REPURCHASE AGREEMENTS--It is the policy of the Funds to require the
custodian bank to take possession, to have legally segregated in the
Federal Reserve Book Entry System, or to have segregated within the
custodian bank's vault, all securities held as collateral under repurchase
agreement transactions. Additionally, procedures have been established by
the Funds to monitor, on a daily basis, the market value of each repurchase
agreement's collateral to ensure that the value of collateral at least
equals the repurchase price to be paid under the repurchase agreement
transaction.
The Funds will only enter into repurchase agreements with banks and other
recognized financial institutions, such as broker/dealers, which are deemed
by the Funds' adviser to be creditworthy pursuant to the guidelines and/or
standards reviewed or established by the Board of Trustees (the
"Trustees"). Risks may arise from the potential inability of counterparties
to honor the terms of the repurchase agreement. Accordingly, the Funds
could receive less than the repurchase price on the sale of collateral
securities.
INVESTMENT INCOME, EXPENSES AND DISTRIBUTIONS--Interest income and expenses
are accrued daily. Bond premium and discount, if applicable, are amortized
as required by the Internal Revenue Code, as amended (the "Code"). Dividend
income and distributions to shareholders are recorded on the ex-dividend
date.
FEDERAL TAXES--It is the Funds' policy to comply with the provisions of the
Code applicable to regulated investment companies and to distribute to
shareholders each year substantially all of their income. Accordingly, no
provisions for federal tax are necessary.
At April 30, 1997, the Prime Fund and the 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 the 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 ($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 Funds' 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.
<PAGE>
RIMCO MONUMENT FUNDS
- --------------------------------------------------------------------------------
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
-------------------------------
SIX MONTHS
ENDED YEAR ENDED
OCTOBER 31, APRIL 30,
1997 1997
- ----------------------------------------------------------------------------------- ------------ --------------
<S> <C> <C>
Shares sold 122,499,890 449,279,619
- ----------------------------------------------------------------------------------
Shares issued to shareholders in payment of distributions declared 599,218 860,699
- ----------------------------------------------------------------------------------
Shares redeemed (128,888,819) (416,232,679)
- ---------------------------------------------------------------------------------- ----------- ------------
Net change resulting from share transactions (5,789,711) 33,907,639
- ---------------------------------------------------------------------------------- ----------- ------------
</TABLE>
<TABLE>
<CAPTION>
PRIME FUND
-------------------------------
SIX MONTHS
ENDED YEAR ENDED
OCTOBER 31, APRIL 30,
CLASS A SHARES 1997 1997
- ----------------------------------------------------------------------------------- ------------ --------------
<S> <C> <C>
Shares sold 726,106,764 1,412,757,103
- ----------------------------------------------------------------------------------
Shares issued to shareholders in payment of distributions declared 2,758,418 6,512,315
- ----------------------------------------------------------------------------------
Shares redeemed (762,085,415) (1,414,974,408)
- ---------------------------------------------------------------------------------- ----------- ------------
Net change resulting from Class A Shares transactions (33,220,233) 4,295,010
- ---------------------------------------------------------------------------------- ----------- ------------
</TABLE>
<PAGE>
RIMCO MONUMENT FUNDS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRIME FUND
-------------------------------
SIX MONTHS
ENDED YEAR ENDED
OCTOBER 31, APRIL 30,
CLASS B SHARES 1997 1997
- -------------------------------------------------------------------------------- ------------ --------------
<S> <C> <C>
Shares sold 49,271,290 80,348,400
- -------------------------------------------------------------------------------
Shares issued to shareholders in payment of distributions declared 1,976 209
- -------------------------------------------------------------------------------
Shares redeemed (75,386,156) (54,095,833)
- ------------------------------------------------------------------------------- ----------- ----------
Net change resulting from Class B Shares transactions (26,112,890) 26,252,776
- ------------------------------------------------------------------------------- ----------- ----------
Net change resulting from share transactions (59,333,123) 30,547,786
- ------------------------------------------------------------------------------- ----------- ----------
</TABLE>
<TABLE>
<CAPTION>
SMALL
BOND FUND STOCK FUND CAPITALIZATION FUND
------------------------ ------------------------ -----------------------
SIX SIX SIX
MONTHS YEAR MONTHS YEAR MONTHS YEAR
ENDED ENDED ENDED ENDED ENDED ENDED
OCTOBER 31, APRIL 30, OCTOBER 31, APRIL 30, OCTOBER 31, APRIL 30,
1997 1997 1997 1997 1997 1997
- ------------------------------------------ ----------- ---------- ----------- ---------- ----------- ---------
<S> <C> <C> <C> <C> <C> <C>
Shares sold 646,153 648,055 648,777 1,490,755 364,626 1,058,741
- -----------------------------------------
Shares issued to shareholders in payment
of
distributions declared 13,865 36,491 7,203 290,990 -- 6,849
- -----------------------------------------
Shares redeemed (768,570) (2,679,358) (642,800) (1,352,718) (210,821) (262,516)
- ----------------------------------------- ---------- -------- ---------- --------- -------- --------
Net change resulting from share
transactions (108,552) (1,994,812) 13,180 429,027 153,805 803,074
- ----------------------------------------- ---------- -------- ---------- --------- -------- --------
</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.
<TABLE>
<CAPTION>
ANNUAL
FUND RATE
--------------------------------------------------------- ------
<S> <C>
Treasury Fund 0.50%
---------------------------------------------------------
Prime Fund 0.50%
---------------------------------------------------------
Bond Fund 0.75%
---------------------------------------------------------
Stock Fund 0.75%
---------------------------------------------------------
Small Capitalization Fund 0.80%
---------------------------------------------------------
</TABLE>
<PAGE>
RIMCO MONUMENT FUNDS
- --------------------------------------------------------------------------------
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 FEES--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. The distributor may voluntarily choose to waive any portion of
its fee. The distributor can modify or terminate this waiver at any time at its
sole discretion.
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 Fund's effective date. For the six months
ended October 31, 1997, the following amount was paid pursuant to this
agreement:
<TABLE>
<CAPTION>
ORGANIZATIONAL
EXPENSES
PAID FOR THE
ORGANIZATIONAL SIX MONTHS ENDED
FUND EFFECTIVE DATE EXPENSES OCTOBER 31, 1997
- --------------------------------------- ---------------- -------------- ----------------
<S> <C> <C> <C>
Small Capitalization Fund February 6, 1995 $ 22,693 $6,303
- ---------------------------------------
</TABLE>
GENERAL--Certain of the Officers and Trustees of the Trust are Officers and
Directors or Trustees of the above companies.
<PAGE>
RIMCO MONUMENT FUNDS
- --------------------------------------------------------------------------------
(5) INVESTMENT TRANSACTIONS
Purchases and sales of investments, excluding short-term obligations, for the
six months ended October 31, 1997, were as follows:
<TABLE>
<CAPTION>
FUND PURCHASES SALES
- ----------------------------------------------------------------- ----------- -----------
<S> <C> <C>
Bond Fund $29,637,820 $28,355,733
- ----------------------------------------------------------------- ----------- -----------
Stock Fund $47,267,923 $45,973,435
- ----------------------------------------------------------------- ----------- -----------
Small Capitalization Fund $22,128,982 $18,771,215
- ----------------------------------------------------------------- ----------- -----------
</TABLE>
<PAGE>
<TABLE>
<S> <C>
TRUSTEES OFFICERS
- ---------------------------------------------------------------------------------------------
John F. Donahue John F. Donahue
Thomas G. Bigley Chairman
John T. Conroy, Jr. Edward C. Gonzales
William J. Copeland President and Treasurer
James E. Dowd J. Christopher Donahue
Lawrence D. Ellis, M.D. Executive Vice President
Edward L. Flaherty, Jr. John W. McGonigle
Edward C. Gonzales Executive Vice President and Secretary
Peter E. Madden Jeffrey W. Sterling
Gregor F. Meyer Vice President and Assistant Treasurer
John E. Murray, Jr. Richard B. Fisher
Wesley W. Posvar Vice President
Marjorie P. Smuts 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' objectives and policies, management fees, expenses and other
information.
