PRESIDENT'S MESSAGE
- --------------------------------------------------------------------------------
Dear Investor:
I am pleased to present the Semi-Annual Report for the RIMCO Monument Funds for
the six-month period ended October 31, 1996. It begins with an investment
commentary by each portfolio manager, followed by a complete list of holdings
and the financial statements for the U.S. Treasury Money Market Fund, Prime
Money Market Fund, Bond Fund, Stock Fund, and Small Capitalization Equity 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
investors 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. Total assets in the fund reached $150.4 million at
the end of the period.*
RIMCO MONUMENT PRIME MONEY MARKET FUND
This fund helps investors earn daily income on their ready cash through a
portfolio of high-quality money market securities. The fund's Class A Shares and
Class B Shares both paid dividends totaling $0.02 per share. The fund ended the
period with total assets of $324.4 million.*
RIMCO MONUMENT BOND FUND
For income-oriented investors, this fund offers a highly diversified approach to
bond investing. At the end of the period, the fund's portfolio was diversified
in corporate bonds (40.1%), government agency bonds (26.6%), U.S. Treasury notes
and bonds (27.9%) and a repurchase agreement backed by U.S. Treasury obligations
(4.5%). The fund paid dividends totaling $0.30 per share, while its net asset
value rose from $9.47 on the first day of the period to $9.59 on the last day of
the period. The dividends and net asset value increase resulted in a total
return of 4.52% (-0.43% adjusted for the fund's sales charge).** Total assets in
the fund stood at $32.1 million at the end of the period.
RIMCO MONUMENT STOCK FUND
During the period, this diversified portfolio of high quality stocks--which
includes many household names like American Express, Black & Decker, Chrysler,
Coca Cola, Disney, and Xerox--produced a total return of 6.76% (0.60% adjusted
for the fund's sales charge).** This return was the result of a 6% increase in
net asset value and $0.10 per share in dividend income. The fund ended the
period with total net assets of $81.5 million.
* Although money market funds seek to maintain a stable net asset value of
$1.00 per share, there is no assurance that they will be able to do so. An
investment in the fund is neither insured nor guaranteed by the U.S.
government.
** Performance quoted 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.
RIMCO MONUMENT SMALL CAPITALIZATION EQUITY FUND
As the most aggressive fund in the RIMCO Monument family, it pursues a high
level of long-term growth by investing in a portfolio of carefully selected
stocks issued by small companies. While the fund's six-month total return was
-3.19% (-8.76% adjusted for the fund's sales charge),** it is important to
remember to keep your eye on the long-term. With stocks--especially
small-company stocks, which offer the potential for strong long-term returns
in exchange for periodic downturns--true performance is measured in years,
not months. For example, the fund's total return since it began operation on
February 27, 1995 through October 31, 1996--a period of 20 months--has been a
very strong 22.64% (18.39% adjusted for the fund's sales charge).** As of
October 31, 1996, the one-year total return based on offering price was
10.57%. Short-term downturns will occur, and this was one of those periods
for the fund.+
Thank you for selecting one or more of the RIMCO Monument Funds to pursue
your financial goals. We look forward to keeping you informed about your
progress.
Sincerely,
LOGO
Edward C. Gonzales
President
December 15, 1996
** 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.
INVESTMENT REVIEW
- --------------------------------------------------------------------------------
RIMCO MONUMENT U.S. TREASURY MONEY MARKET FUND ("TREASURY FUND")
RIMCO MONUMENT PRIME MONEY MARKET FUND ("PRIME FUND")
For the past six months, and since the fiscal year ended April 30, 1996,
short-term yields have vacillated within a 50 basis point trading range and are
now at the bottom end of that trading range. Since April, the one-year Treasury
bill has gone as high as 5.96% on July 8, 1996, when the fixed income market
expected the Federal Reserve to raise short-term rates in anticipation of a
strengthening economy. However, as the summer progressed, it was apparent that
the economy was not strengthening, but rather was starting to slow down. The
fixed income markets rallied as the slower-than-expected economic data continued
to be reported. At the end of October 1996, the one-year Treasury bill yield was
5.40%, a 56 basis point drop from mid-summer. The three-month and six-month
bills showed similar patterns. The three-month bill fell from its high of 5.36%
in late summer to the current yield of 5.15%; the six-month bill fell from its
high yield of 5.63% in July to its current yield of 5.27%.
The case for slow-to-moderate GDP growth, subdued inflation, and lower bond
yields is apparent in several aspects of the economy. The slowdown in consumer
spending was the major element in the third quarter's deceleration of GDP
growth. Core inflation prices are well restrained, as the performance of
non-food, non-energy prices is very encouraging, especially at the wholesale
level. Additionally, the industrial sector and the housing market have
demonstrated sluggishness, too. We expect jobs growth to remain moderately firm.
Looking forward, we do not expect the Federal Reserve to increase interest rates
over the next three to six months.
RIMCO MONUMENT BOND FUND ("BOND FUND")
In the six months since our last report (April 30, 1996 to October 31)
longer-term interest rates have made a significant change in direction from the
prior period. Thirty-year Treasury bonds had fallen to yields below 6% as of
January 1st of 1996, only to shoot up to 6.9% in yield as of our fiscal
year-end. During the current period, rates continued to increase, reaching the
7.2% level on thirty-year Treasury bonds in both June and July on similarly
strong job growth and housing numbers and an unemployment rate approaching 5%.
(Such low unemployment levels heralded higher inflation in past cycles.) But in
recent months, slower payroll growth and housing starts, as well as sluggish
retail sales, have suggested a moderation in economic growth. Treasury bond
yields declined to 6.64%, as of October 31, and to 6.4% as of this writing (Nov.
26).
Last year at about this time we predicted that "most of our return over the next
year will come from coupon income." As it turned out, all of our return has come
from coupon income. Going forward, we do not expect to see significantly lower
yields over the next six-month period. Given the premium over inflation that
investors have required over the past several years, yields below current levels
do not represent particularly good value to us. We are currently neutral
regarding our outlook for the bond market. Again, we anticipate that most of our
total return over the next six months will be from coupon interest, as opposed
to price returns.
INVESTMENT REVIEW
- --------------------------------------------------------------------------------
RIMCO MONUMENT STOCK FUND ("STOCK FUND")
RIMCO MONUMENT SMALL CAPITALIZATION EQUITY FUND ("SMALL CAPITALIZATION FUND")
The RIMCO Monument Stock Fund continued its trend of providing solid returns to
our shareholders. For the six-month period ended October 31, 1996, the Stock
Fund generated a total return of 6.76% based on net asset value and a total
return of .60% assuming the maximum 5.75% sales charge.*
The RIMCO Monument Small Capitalization Fund generated a total return of -3.19%
based on net asset value and a total return of -8.76% assuming the maximum 5.75%
sales charge.*
Our investment philosophy in managing both stock funds is to balance long-term
valuation with the catalyst of short-term earnings growth. We employ our
methodology which we call Value/Momentum by focusing on four key factors: (1)
relative value; (2) earnings growth relative to the price-to-earnings multiple;
(3) earnings estimate revisions; and (4) relative price strength. For stocks
scoring highly in this process, we focus on the fundamental changes that
management is implementing within these companies to generate earnings growth.
We then choose to invest in those companies where we have the most confidence in
management.
Over the past six months we were able to invest in a broadly diversified group
of stocks. Examples of core holdings in the Stock Fund that were propelled by
superior earnings growth included: Oxford Healthcare up 39%; Conagra Inc. up
30%; and Safeway Inc. up 27%.
In the Small Capitalization Fund, the energy and finance sectors in particular
benefited from accelerating earnings. This was offset in part by weakness in
consumer cyclicals particularly retailing. Superior core investments included:
Sirrom Capital up 46%; Rowan Companies up 41%; and Silicon Gaming up 42%.
This past six-month period saw a refreshing slowdown in economic growth. We
believe this to be temporary with renewed acceleration in the economy beginning
in the fourth quarter. Moderate economic growth combined with low inflation is
an environment where equity investments can flourish. Global changes have made
competition more intense and have provided opportunities for companies with
superior management to prosper. The surprise we have seen in the markets is that
corporate profit growth has remained healthy and exceeded expectations. While we
are encouraged going forward, we believe earnings growth trends should be
moderate.
By seeking out companies whose stocks display both value and growth
characteristics we try to provide shareholders with consistently superior
returns. We believe that our disciplined focus on undervalued companies with
solid earnings growth will continue to reward our shareholders in the future.
* Performance quoted 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.
RIMCO MONUMENT U.S. TREASURY MONEY MARKET FUND
PORTFOLIO OF INVESTMENTS
OCTOBER 31, 1996 (UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
- ----------- ----------------------------------------------------------------- ------------
<C> <C> <S> <C>
UNITED STATES TREASURY OBLIGATIONS--39.7%
- ----------------------------------------------------------------------------------
U.S. TREASURY BILLS--18.4%
-----------------------------------------------------------------
$28,000,000 11/14/1996-4/3/1997 $ 27,679,286
-----------------------------------------------------------------
U.S. TREASURY NOTES--21.3%
-----------------------------------------------------------------
32,000,000 4.375%-7.500%, 11/15/1996-4/30/1997 32,105,329
----------------------------------------------------------------- ------------
TOTAL UNITED STATES TREASURY OBLIGATIONS 59,784,615
----------------------------------------------------------------- ------------
(A) REPURCHASE AGREEMENTS--60.3%
- ----------------------------------------------------------------------------------
60,669,000 Dean Witter Reynolds, Inc., 5.49%, dated 10/31/1996, due
11/1/1996 60,669,000
-----------------------------------------------------------------
30,000,000 Donaldson, Lufkin and Jenrette Securities Corp., 5.52%, dated
10/31/1996, due 11/1/1996 30,000,000
----------------------------------------------------------------- ------------
TOTAL REPURCHASE AGREEMENTS 90,669,000
----------------------------------------------------------------- ------------
TOTAL INVESTMENTS (AT AMORTIZED COST)(B) $150,453,615
----------------------------------------------------------------- ------------
</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
($150,457,380) at
October 31, 1996.
(See Notes which are an integral part of the Financial Statements)
RIMCO MONUMENT U.S. TREASURY MONEY MARKET FUND
STATEMENT OF ASSETS AND LIABILITIES
OCTOBER 31, 1996 (UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<S> <C> <C>
ASSETS:
- --------------------------------------------------------------------------------
Investments in repurchase agreements $90,669,000
- ------------------------------------------------------------------
Investments in securities 59,784,615
- ------------------------------------------------------------------ -----------
Total investments in securities, at amortized cost and value $150,453,615
- --------------------------------------------------------------------------------
Cash 156
- --------------------------------------------------------------------------------
Income receivable 481,181
- --------------------------------------------------------------------------------
Deferred expenses 1,040
- -------------------------------------------------------------------------------- ------------
Total assets 150,935,992
- --------------------------------------------------------------------------------
LIABILITIES:
- --------------------------------------------------------------------------------
Income distribution payable 443,331
- ------------------------------------------------------------------
Accrued expenses 35,281
- ------------------------------------------------------------------ -----------
Total liabilities 478,612
- -------------------------------------------------------------------------------- ------------
NET ASSETS for 150,457,380 shares outstanding $150,457,380
- -------------------------------------------------------------------------------- ------------
NET ASSET VALUE, Offering Price and Redemption Proceeds Per Share:
$150,457,380 / 150,457,380 shares outstanding $1.00
- -------------------------------------------------------------------------------- ------------
</TABLE>
(See Notes which are an integral part of the Financial Statements)
RIMCO MONUMENT U.S. TREASURY MONEY MARKET FUND
STATEMENT OF OPERATIONS
SIX MONTHS ENDED OCTOBER 31, 1996 (UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<S> <C> <C>
INVESTMENT INCOME:
- ---------------------------------------------------------------------------------
Interest $3,221,742
- ---------------------------------------------------------------------------------
EXPENSES:
- ---------------------------------------------------------------------------------
Investment advisory fee $304,159
- ----------------------------------------------------------------------
Administrative personnel and services fee 79,405
- ----------------------------------------------------------------------
Transfer and dividend disbursing agent fees and expenses 15,728
- ----------------------------------------------------------------------
Directors'/Trustees' fees 730
- ----------------------------------------------------------------------
Auditing fees 7,562
- ----------------------------------------------------------------------
Legal fees 2,017
- ----------------------------------------------------------------------
Portfolio accounting fees 20,869
- ----------------------------------------------------------------------
Share registration costs 7,336
- ----------------------------------------------------------------------
Printing and postage 6,554
- ----------------------------------------------------------------------
Insurance premiums 2,823
- ----------------------------------------------------------------------
Miscellaneous 4,670
- ---------------------------------------------------------------------- --------
Total expenses 451,853
- ----------------------------------------------------------------------
Waiver of investment advisory fee (85,139)
- ---------------------------------------------------------------------- --------
Net expenses 366,714
- --------------------------------------------------------------------------------- ----------
Net investment income $2,855,028
- --------------------------------------------------------------------------------- ----------
</TABLE>
(See Notes which are an integral part of the Financial Statements)
RIMCO MONUMENT U.S. TREASURY MONEY MARKET FUND
STATEMENT OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SIX MONTHS ENDED
(UNAUDITED) YEAR ENDED
OCTOBER 31, 1996 APRIL 30, 1996
---------------- --------------
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
- ---------------------------------------------------------
OPERATIONS--
- ---------------------------------------------------------
Net investment income $ 2,855,028 $ 5,002,721
- --------------------------------------------------------- ---------------- -------------
DISTRIBUTIONS TO SHAREHOLDERS--
- ---------------------------------------------------------
Distributions from net investment income (2,855,028) (5,002,721)
- --------------------------------------------------------- ---------------- -------------
SHARE TRANSACTIONS--
- ---------------------------------------------------------
Proceeds from sale of shares 153,671,562 436,204,901
- ---------------------------------------------------------
Net asset value of shares issued to shareholders in
payment of distributions declared 289,730 773,387
- ---------------------------------------------------------
Cost of shares redeemed (110,607,554) (410,963,751)
- --------------------------------------------------------- ---------------- -------------
Change in net assets resulting from share
transactions 43,353,738 26,014,537
- --------------------------------------------------------- ---------------- -------------
Change in net assets 43,353,738 26,014,537
- ---------------------------------------------------------
NET ASSETS:
- ---------------------------------------------------------
Beginning of period 107,103,642 81,089,105
- --------------------------------------------------------- ---------------- -------------
End of period $ 150,457,380 $ 107,103,642
- --------------------------------------------------------- ---------------- -------------
</TABLE>
(See Notes which are an integral part of the Financial Statements)
RIMCO MONUMENT U.S. TREASURY MONEY MARKET FUND
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
(FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD)
<TABLE>
<CAPTION>
SIX MONTHS
ENDED
(UNAUDITED)
OCTOBER 31, YEAR ENDED APRIL 30,
----------- -----------------------------------------------
1996 1996 1995 1994 1993 1992(A)
----------- ------ ------ ------ ------ -------
<S> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
- ------------------------------------
INCOME FROM INVESTMENT OPERATIONS
- ------------------------------------
Net investment income 0.02 0.05 0.04 0.03 0.03 0.02
- ------------------------------------ -------- ------ ------ ------ ------ -------
LESS DISTRIBUTIONS
- ------------------------------------
Distributions from net investment
income (0.02) (0.05) (0.04) (0.03) (0.03) (0.02)
- ------------------------------------ -------- ------ ------ ------ ------ ------
NET ASSET VALUE, END OF PERIOD $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
- ------------------------------------ -------- ------ ------ ------ ------ ------
TOTAL RETURN (B) 2.39% 5.28% 4.39% 2.64% 2.92% 2.37%
- ------------------------------------
RATIOS TO AVERAGE NET ASSETS
- ------------------------------------
Expenses 0.60%(c) 0.60% 0.60% 0.56% 0.52% 0.41%(c)
- ------------------------------------
Net investment income 4.69%(c) 5.17% 4.33% 2.61% 2.86% 4.08%(c)
- ------------------------------------
Expense waiver/reimbursement (d) 0.14%(c) 0.18% 0.20% 0.16% 0.29% 0.42%(c)
- ------------------------------------
SUPPLEMENTAL DATA
- ------------------------------------
Net assets, end of period (000
omitted) $150,457 $107,104 $81,089 $106,948 $86,875 $51,039
- ------------------------------------
</TABLE>
(a) Reflects operations for the period from October 8, 1991 (date of initial
public investment) to April 30, 1992.
(b) Based on net asset value, which does not reflect the sales charge or
contingent deferred sales charge, if applicable.
(c) Computed on an annualized basis.
(d) This voluntary expense decrease is reflected in both the expense and net
investment income ratios shown above.
(See Notes which are an integral part of the Financial Statements)
RIMCO MONUMENT PRIME MONEY MARKET FUND
PORTFOLIO OF INVESTMENTS
OCTOBER 31, 1996 (UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
- ----------- ---------------------------------------------------------------- ------------
<C> <C> <S> <C>
(A)COMMERCIAL PAPER--3.0%
- -----------------------------------------------------------------------------------
ELECTRONIC TECHNOLOGY--1.5%
----------------------------------------------------------------
$ 5,000,000 International Business Machines Corp., 5.287%, 12/2/1996 $ 4,977,352
---------------------------------------------------------------- ------------
FINANCE--RETAIL--1.5%
----------------------------------------------------------------
5,000,000 Sears Roebuck Acceptance Corp., 5.392%, 1/23/1997 4,938,672
---------------------------------------------------------------- ------------
TOTAL COMMERCIAL PAPER 9,916,024
---------------------------------------------------------------- ------------
CORPORATE BONDS--64.2%
- -----------------------------------------------------------------------------------
BANKING--21.5%
----------------------------------------------------------------
5,000,000 American Express Centurion Bank, DE, 5.353%, 11/14/1996 5,000,000
----------------------------------------------------------------
10,000,000 Bank of America Illinois, 5.37%, 11/27/1996 10,000,000
----------------------------------------------------------------
5,000,000 Bank of New York, 5.63%, 3/3/1997 4,997,902
----------------------------------------------------------------
2,550,000 BankAmerica Corp., 7.50%, 3/15/1997 2,566,936
----------------------------------------------------------------
10,000,000 Bank One, Milwaukee, WI, N.A., 5.34%, 11/1/1996 9,999,489
----------------------------------------------------------------
5,000,000 Bank of Boston Corp., 5.615%, 12/17/1996 4,999,206
----------------------------------------------------------------
5,000,000 Boatmen's Credit Card Bank, 5.42%, 11/5/1996 5,000,000
----------------------------------------------------------------
10,000,000 Colorado National Bank, 5.357%, 11/20/1996 9,999,713
----------------------------------------------------------------
200,000 Deutsche Bank Financial, Inc., 8.80%, 1/15/1997 201,286
----------------------------------------------------------------
2,000,000 NBD Bank, Michigan, 4.60%, 2/3/1997 1,994,940
----------------------------------------------------------------
5,000,000 SouthTrust Bank of Georgia, Atlanta, 5.315%, 11/22/1996 4,998,921
----------------------------------------------------------------
10,000,000 Southtrust Bank, North Carolina, 5.383%, 11/15/1996 10,000,000
---------------------------------------------------------------- ------------
Total 69,758,393
---------------------------------------------------------------- ------------
CONSUMER NON-DURABLES--0.3%
----------------------------------------------------------------
825,000 Philip Morris Cos., Inc., 8.75%, 12/1/1996 827,243
---------------------------------------------------------------- ------------
FINANCE--22.2%
----------------------------------------------------------------
200,000 American Express Credit Corp., 7.875%, 12/1/1996 200,366
----------------------------------------------------------------
6,165,000 American General Finance Corp., 5.80%, 4/1/1997 6,164,904
----------------------------------------------------------------
4,650,000 Associates Corp. of North America, 6.71%-9.70%,
1/1/1997-8/11/1997 4,705,602
----------------------------------------------------------------
</TABLE>
RIMCO MONUMENT PRIME MONEY MARKET FUND
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
- ----------- ---------------------------------------------------------------- ------------
<C> <C> <S> <C>
CORPORATE BONDS--CONTINUED
- -----------------------------------------------------------------------------------
FINANCE--CONTINUED
----------------------------------------------------------------
$ 2,000,000 Avco Financial Services, Inc., 7.50%, 11/15/1996 $ 2,001,580
----------------------------------------------------------------
775,000 Beneficial Corp., 5.97%, 9/15/1997 774,811
----------------------------------------------------------------
10,000,000 Beneficial Corp., 5.50%, 11/1/1996 10,003,478
----------------------------------------------------------------
10,000,000 CIESCO, Inc., 5.313%, 11/19/1996 9,999,063
----------------------------------------------------------------
200,000 Citicorp, 8.25%, 2/13/1997 201,320
----------------------------------------------------------------
4,000,000 First Chicago Corp., 7.65%, 2/14/1997 4,021,505
----------------------------------------------------------------
3,000,000 Fleet Mortgage Group, Inc., 6.125%, 8/15/1997 3,003,400
----------------------------------------------------------------
2,100,000 Household Finance Corp., 7.625%-7.75%, 12/15/1996-6/15/1997 2,112,625
----------------------------------------------------------------
8,000,000 Manufacturers Hanover Trust, 5.50%, 11/29/1996 8,000,000
----------------------------------------------------------------
3,000,000 NCNB Corp., 8.50%, 11/1/1996 3,000,000
----------------------------------------------------------------
3,640,000 Norwest Financial, Inc., 6.25%, 2/15/1997 3,644,119
----------------------------------------------------------------
5,000,000 PHH Corp., 5.345%, 11/8/1996 4,998,132
----------------------------------------------------------------
4,230,000 Security Pacific Corporation, 7.75%, 12/1/1996 4,236,543
----------------------------------------------------------------
5,000,000 Shawmut National Corp., 8.125%, 2/1/1997 5,025,747
---------------------------------------------------------------- ------------
Total 72,093,195
---------------------------------------------------------------- ------------
FINANCE--AUTOMOTIVE--7.8%
----------------------------------------------------------------
6,000,000 Chrysler Financial Corp., 6.23%-7.63%, 2/24/1997-8/7/1997 6,028,812
----------------------------------------------------------------
10,950,000 Ford Motor Credit Corp., 5.61%-9.30%, 11/5/1996-8/15/1997 11,004,657
----------------------------------------------------------------
8,450,000 General Motors Acceptance Corp., 6.30%-8.375%,
12/10/1996-6/9/1997 8,481,083
---------------------------------------------------------------- ------------
Total 25,514,552
---------------------------------------------------------------- ------------
FINANCE--EQUIPMENT--4.7%
----------------------------------------------------------------
2,000,000 Deere (John) Capital Corp., 7.20%-7.47%, 4/14/1997-5/15/1997 2,015,110
----------------------------------------------------------------
5,650,000 General Electric Capital Corp., 4.70%-8.55%,
11/19/1996-1/31/1997 5,659,247
----------------------------------------------------------------
7,600,000 International Lease Finance Corp., 5.50%-6.75%,
4/1/1997-8/1/1997 7,611,145
---------------------------------------------------------------- ------------
Total 15,285,502
---------------------------------------------------------------- ------------
</TABLE>
RIMCO MONUMENT PRIME MONEY MARKET FUND
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
- ----------- ---------------------------------------------------------------- ------------
<C> <C> <S> <C>
CORPORATE BONDS--CONTINUED
- -----------------------------------------------------------------------------------
FINANCE--INSURANCE--3.1%
----------------------------------------------------------------
$10,000,000 Allstate Life Insurance Co., GIC, 5.57%, 11/1/1996 $ 10,000,000
---------------------------------------------------------------- ------------
FINANCE--RETAIL--2.5%
----------------------------------------------------------------
1,000,000 Commercial Credit Co., 6.75%, 1/15/1997 1,002,011
----------------------------------------------------------------
7,000,000 Sears, Roebuck & Co., 5.25%-9.25%, 2/24/1997-8/1/1997 7,036,702
---------------------------------------------------------------- ------------
Total 8,038,713
---------------------------------------------------------------- ------------
FOOD & BEVERAGE--0.2%
----------------------------------------------------------------
600,000 PepsiCo, Inc., 5.00%, 2/24/1997 598,593
---------------------------------------------------------------- ------------
HEALTH TECHNOLOGY--1.7%
----------------------------------------------------------------
5,550,000 American Home Products Corp., 6.875%, 4/15/1997 5,576,352
---------------------------------------------------------------- ------------
INDUSTRIAL SERVICES--0.2%
----------------------------------------------------------------
500,000 WMX Technologies, Inc., 6.375%, 7/1/1997 501,817
---------------------------------------------------------------- ------------
TOTAL CORPORATE BONDS 208,194,360
---------------------------------------------------------------- ------------
GOVERNMENT AGENCIES--28.0%
- -----------------------------------------------------------------------------------
(B) FEDERAL FARM CREDIT BANK--3.1%
----------------------------------------------------------------
10,000,000 5.41%, 6/19/1997 10,000,000
---------------------------------------------------------------- ------------
(B) FEDERAL HOME LOAN BANK--9.1%
----------------------------------------------------------------
29,500,000 5.33%-5.75%, 11/14/1996-11/19/1997 29,500,000
---------------------------------------------------------------- ------------
FEDERAL HOME LOAN MORTGAGE CORPORATION--0.2%
----------------------------------------------------------------
500,000 7.75%, 1/27/1997 502,449
---------------------------------------------------------------- ------------
(B) STUDENT LOAN MARKETING ASSOCIATION--15.6%
----------------------------------------------------------------
50,745,000 5.35%-5.605%, 11/5/1996 50,712,261
---------------------------------------------------------------- ------------
TOTAL GOVERNMENT AGENCIES 90,714,710
---------------------------------------------------------------- ------------
UNITED STATES TREASURY OBLIGATION--0.2%
- -----------------------------------------------------------------------------------
U.S. TREASURY BILL
----------------------------------------------------------------
506,000 5.20%, 12/5/1996 503,544
---------------------------------------------------------------- ------------
</TABLE>
RIMCO MONUMENT PRIME MONEY MARKET FUND
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
- ----------- ---------------------------------------------------------------- ------------
<C> <C> <S> <C>
(C) REPURCHASE AGREEMENT--5.7%
- -----------------------------------------------------------------------------------
$18,536,000 Dean Witter Reynolds, Inc., 5.49%, dated 10/31/1996, due
11/1/1996 $ 18,536,000
---------------------------------------------------------------- ------------
TOTAL INVESTMENTS (AT AMORTIZED COST)(D) $327,864,638
---------------------------------------------------------------- ------------
</TABLE>
(a) Each issue shows the rate of discount at the time of purchase for the
discount issues, or the coupon for interest bearing issues.
(b) Current rate and next reset date shown.
(c) The repurchase agreement is fully collateralized by U.S. Treasury
obligations based on market prices at the date of the portfolio.
(d) Also represents cost for federal tax purposes.
Note: The categories of investments are shown as a percentage of net assets
($324,457,323) at October 31, 1996.
The following acronym is used throughout this portfolio:
GIC--Guaranteed Investment Contract
(See Notes which are an integral part of the Financial Statements)
RIMCO MONUMENT PRIME MONEY MARKET FUND
STATEMENT OF ASSETS AND LIABILITIES
OCTOBER 31, 1996 (UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<S> <C> <C>
ASSETS:
- ----------------------------------------------------------------------------
Total investments in securities, at amortized cost and value $327,864,638
- ----------------------------------------------------------------------------
Cash 222,998
- ----------------------------------------------------------------------------
Income receivable 3,329,406
- ---------------------------------------------------------------------------- ------------
Total assets 331,417,042
- ----------------------------------------------------------------------------
LIABILITIES:
- ----------------------------------------------------------------------------
Payable for investments purchased $5,508,618
- --------------------------------------------------------------
Income distribution payable 1,408,107
- --------------------------------------------------------------
Accrued expenses 42,994
- -------------------------------------------------------------- ----------
Total liabilities 6,959,719
- ---------------------------------------------------------------------------- ------------
NET ASSETS for 324,746,714 shares outstanding $324,457,323
- ---------------------------------------------------------------------------- ------------
NET ASSETS CONSIST OF:
- ----------------------------------------------------------------------------
Paid in capital $324,748,370
- ----------------------------------------------------------------------------
Undistributed net investment income 580,044
- ----------------------------------------------------------------------------
Accumulated net realized loss on investments (871,091)
- ---------------------------------------------------------------------------- ------------
Total Net Assets $324,457,323
- ---------------------------------------------------------------------------- ------------
NET ASSET VALUE, Offering Price and Redemption Proceeds Per Share:
- ----------------------------------------------------------------------------
Class A Shares:
- ----------------------------------------------------------------------------
$318,257,054 / 318,546,461 shares outstanding $1.00
- ---------------------------------------------------------------------------- ------------
Class B Shares:
- ----------------------------------------------------------------------------
$6,200,269 / 6,200,253 shares outstanding $1.00
- ---------------------------------------------------------------------------- ------------
</TABLE>
(See Notes which are an integral part of the Financial Statements)
RIMCO MONUMENT PRIME MONEY MARKET FUND
STATEMENT OF OPERATIONS
SIX MONTHS ENDED OCTOBER 31, 1996 (UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<S> <C> <C>
INVESTMENT INCOME:
- ----------------------------------------------------------------------------------
Interest $9,620,351
- ----------------------------------------------------------------------------------
EXPENSES:
- ----------------------------------------------------------------------------------
Investment advisory fee $ 878,670
- ---------------------------------------------------------------------
Administrative personnel and services fee 229,293
- ---------------------------------------------------------------------
Transfer and dividend disbursing agent fees and expenses 25,141
- ---------------------------------------------------------------------
Directors'/Trustees' fees 1,333
- ---------------------------------------------------------------------
Auditing fees 7,171
- ---------------------------------------------------------------------
Legal fees 1,345
- ---------------------------------------------------------------------
Portfolio accounting fees 41,243
- ---------------------------------------------------------------------
Distribution services fee--Class B Shares 11,909
- ---------------------------------------------------------------------
Share registration costs 15,266
- ---------------------------------------------------------------------
Printing and postage 4,896
- ---------------------------------------------------------------------
Insurance premiums 4,448
- ---------------------------------------------------------------------
Miscellaneous 2,650
- --------------------------------------------------------------------- ----------
Total expenses 1,223,365
- ---------------------------------------------------------------------
Waiver of investment advisory fee (310,742)
- --------------------------------------------------------------------- ----------
Net expenses 912,623
- ---------------------------------------------------------------------------------- ----------
Net investment income 8,707,728
- ---------------------------------------------------------------------------------- ----------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:
- ----------------------------------------------------------------------------------
Net realized gain on investments 2,020
- ---------------------------------------------------------------------------------- ----------
Change in net assets resulting from operations $8,709,748
- ---------------------------------------------------------------------------------- ----------
</TABLE>
(See Notes which are an integral part of the Financial Statements)
RIMCO MONUMENT PRIME MONEY MARKET FUND
STATEMENT OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SIX MONTHS ENDED
(UNAUDITED) YEAR ENDED
OCTOBER 31, 1996 APRIL 30, 1996
---------------- --------------
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
- -------------------------------------------------------
OPERATIONS--
- -------------------------------------------------------
Net investment income $ 8,707,728 $ 17,291,722
- -------------------------------------------------------
Net realized gain on investments ($2,020 and $60,388
net gains, as computed for federal tax purposes) 2,020 49,887
- ------------------------------------------------------- ---------------- -------------
Change in net assets resulting from operations 8,709,748 17,341,609
- ------------------------------------------------------- ---------------- -------------
DISTRIBUTIONS TO SHAREHOLDERS--
- -------------------------------------------------------
Distributions from net investment income
- -------------------------------------------------------
Class A Shares (8,602,505) (17,475,829)
- -------------------------------------------------------
Class B Shares (108,299) (83)
- ------------------------------------------------------- ---------------- -------------
Change in net assets resulting from distributions
to shareholders (8,710,804) (17,475,912)
- ------------------------------------------------------- ---------------- -------------
SHARE TRANSACTIONS--
- -------------------------------------------------------
Proceeds from sale of shares 535,340,190 993,944,410
- -------------------------------------------------------
Net asset value of shares issued to shareholders in
payment of distributions declared 2,425,940 3,827,513
- -------------------------------------------------------
Cost of shares redeemed (581,060,224) (913,943,749)
- ------------------------------------------------------- ---------------- -------------
Change in net assets resulting from share
transactions (43,294,094) 83,828,174
- ------------------------------------------------------- ---------------- -------------
Change in net assets (43,295,150) 83,693,871
- -------------------------------------------------------
NET ASSETS:
- -------------------------------------------------------
Beginning of period 367,752,473 284,058,602
- ------------------------------------------------------- ---------------- -------------
End of period (including undistributed net investment
income of $580,044 and $583,120, respectively) $ 324,457,323 $ 367,752,473
- ------------------------------------------------------- ---------------- -------------
</TABLE>
(See Notes which are an integral part of the Financial Statements)
RIMCO MONUMENT PRIME MONEY MARKET FUND
FINANCIAL HIGHLIGHTS--CLASS A SHARES
- --------------------------------------------------------------------------------
(FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD)
<TABLE>
<CAPTION>
SIX MONTHS
ENDED
(UNAUDITED)
OCTOBER 31, YEAR ENDED APRIL 30,
----------- --------------------------------------------------------
1996 1996 1995 1994 1993 1992(A)
----------- ------ ------ ------ ------ -------
<S> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF
PERIOD $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
- ----------------------------------
INCOME FROM INVESTMENT OPERATIONS
- ----------------------------------
Net investment income 0.02 0.05 0.047 0.03 0.04 0.03
- ----------------------------------
Net realized loss on investments -- -- (0.003) -- -- --
- ---------------------------------- ------ ------ ------ ------ ------ -------
Total from investment operations 0.02 0.05 0.044 0.03 0.04 0.03
- ----------------------------------
LESS DISTRIBUTIONS
- ----------------------------------
Distributions from net
investment income (0.02) (0.05) (0.047) (0.03) (0.04) (0.03)
- ----------------------------------
CAPITAL CONTRIBUTION -- -- 0.003 -- -- --
- ---------------------------------- ------ ------ ------ ------ ------ ------
NET ASSET VALUE, END OF PERIOD $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
- ---------------------------------- ------ ------ ------ ------ ------ ------
TOTAL RETURN (B) 2.50% 5.50% 4.84%(c) 3.08% 3.55% 2.90%
- ----------------------------------
RATIOS TO AVERAGE NET ASSETS
- ----------------------------------
Expenses 0.51%(d) 0.51% 0.44% 0.43% 0.41% 0.27%(d)
- ----------------------------------
Net investment income 4.96%(d) 5.26% 4.72% 3.02% 3.46% 4.56%(d)
- ----------------------------------
Expense waiver/reimbursement (e) 0.18%(d) 0.19% 0.24% 0.28% 0.31% 0.47%(d)
- ----------------------------------
SUPPLEMENTAL DATA
- ----------------------------------
Net assets, end of period (000
omitted) $318,257 $367,742 $284,059 $334,765 $277,267 $111,329
- ----------------------------------
</TABLE>
(a) Reflects operations for the period from September 17, 1991 (date of initial
public investment) to April 30, 1992.
(b) Based on net asset value, which does not reflect the sales charge or
contingent deferred sales charge, if applicable.
(c) Total return would have remained at 4.84% absent the capital contribution by
Riggs National Corp.
(d) Computed on an annualized basis.
(e) This voluntary expense decrease is reflected in both the expense and net
investment income ratios shown above.
(See Notes which are an integral part of the Financial Statements)
RIMCO MONUMENT PRIME MONEY MARKET FUND
FINANCIAL HIGHLIGHTS--CLASS B SHARES
- --------------------------------------------------------------------------------
(FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD)
<TABLE>
<CAPTION>
SIX MONTHS
ENDED
(UNAUDITED) YEAR ENDED
OCTOBER 31, 1996 APRIL 30, 1996(A)
---------------- -----------------
<S> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD $ 1.00 $ 1.00
- ---------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS
- ---------------------------------------------------
Net investment income 0.02 0.02
- --------------------------------------------------- ----------- -----------
LESS DISTRIBUTIONS
- ---------------------------------------------------
Distributions from net investment income (0.02) (0.02)
- --------------------------------------------------- ----------- -----------
NET ASSET VALUE, END OF PERIOD $ 1.00 $ 1.00
- --------------------------------------------------- ----------- -----------
TOTAL RETURN (B) 2.25% 0.74%
- ---------------------------------------------------
RATIOS TO AVERAGE NET ASSETS
- ---------------------------------------------------
Expenses 1.03%(c) 1.07%(c)
- ---------------------------------------------------
Net investment income 4.56%(c) 4.58%(c)
- ---------------------------------------------------
Expense waiver/reimbursement (d) 0.18%(c) 0.19%(c)
- ---------------------------------------------------
SUPPLEMENTAL DATA
- ---------------------------------------------------
Net assets, end of period (000 omitted) $6,200 $10
- ---------------------------------------------------
</TABLE>
(a) Reflects operations for the period from December 12, 1995 (date of initial
public investment) to April 30, 1996.
(b) Based on net asset value, which does not reflect the sales charge or
contingent deferred sales charge, if applicable.
(c) Computed on an annualized basis.
(d) This voluntary expense decrease is reflected in both the expense and net
investment income ratios shown above.
(See Notes which are an integral part of the Financial Statements)
RIMCO MONUMENT BOND FUND
PORTFOLIO OF INVESTMENTS
OCTOBER 31, 1996 (UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
- ---------- ------------------------------------------------------------------ -----------
<C> <C> <S> <C>
CORPORATE BONDS--40.1%
- ------------------------------------------------------------------------------------
BANKING--2.2%
------------------------------------------------------------------
$ 645,000 BankAmerica Corp., 9.70%, 8/1/2000 $ 714,950
------------------------------------------------------------------ -----------
FINANCE--27.5%
------------------------------------------------------------------
480,000 Associates Corp. of North America, 7.875%, 9/30/2001 507,168
------------------------------------------------------------------
490,000 Associates Corp. of North America, 8.80%, 8/1/1998 512,550
------------------------------------------------------------------
2,250,000 Bear Stearns Mortgage Securities, Inc., REMIC, 7.75%, 6/25/2027 2,280,938
------------------------------------------------------------------
340,897 Countrywide Funding Corp., PAC, REMIC, 6.75%, 3/25/2024 319,614
------------------------------------------------------------------
1,825,000 Ford Capital BV, 9.375%, 1/1/1998 1,897,161
------------------------------------------------------------------
360,000 GE Global Insurance, 7.00%, 2/15/2026 348,311
------------------------------------------------------------------
880,000 General Electric Financial Services, Inc., 8.75%, 5/21/2007 1,004,159
------------------------------------------------------------------
930,000 Transamerica Finance Corp., 8.75%, 10/1/1999 990,162
------------------------------------------------------------------
930,000 Travelers Group, Inc., 7.75%, 6/15/1999 964,150
------------------------------------------------------------------ -----------
Total 8,824,213
------------------------------------------------------------------ -----------
INDUSTRIAL SERVICES--7.1%
------------------------------------------------------------------
440,000 Lucent Technologies, Inc., 7.25%, 7/15/2006 453,389
------------------------------------------------------------------
500,000 Rohm & Haas Co., 9.50%, 4/1/2021 562,750
------------------------------------------------------------------
230,000 Union Camp Corp., 9.25%, 8/15/2021 255,236
------------------------------------------------------------------
950,000 WMX Technologies, Inc., 7.10%, 8/1/2026 981,834
------------------------------------------------------------------ -----------
Total 2,253,209
------------------------------------------------------------------ -----------
TELECOMMUNICATIONS--3.3%
------------------------------------------------------------------
1,000,000 AT&T Corp., 7.75%, 3/1/2007 1,067,680
------------------------------------------------------------------ -----------
TOTAL CORPORATE BONDS (IDENTIFIED COST $12,609,924) 12,860,052
------------------------------------------------------------------ -----------
GOVERNMENT AGENCIES--26.6%
- ------------------------------------------------------------------------------------
FEDERAL FARM CREDIT BANK--2.1%
------------------------------------------------------------------
575,000 9.20%, 8/22/2005 672,365
------------------------------------------------------------------ -----------
</TABLE>
RIMCO MONUMENT BOND FUND
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
- ---------- ------------------------------------------------------------------ -----------
<C> <C> <S> <C>
GOVERNMENT AGENCIES--CONTINUED
- ------------------------------------------------------------------------------------
FEDERAL HOME LOAN BANK--1.8%
------------------------------------------------------------------
$ 590,000 6.70%, 4/23/2001 $ 594,738
------------------------------------------------------------------ -----------
FEDERAL HOME LOAN MORTGAGE CORPORATION--15.0%
------------------------------------------------------------------
1,140,000 5.00%, 10/15/2007 1,012,103
------------------------------------------------------------------
1,380,000 6.00%, 4/15/2023 1,305,701
------------------------------------------------------------------
620,000 6.79%, 5/24/2001 626,572
------------------------------------------------------------------
1,020,000 REMIC, 5.85%, 2/15/2008 979,220
------------------------------------------------------------------
400,000 REMIC, 7.00%, 10/15/2023 398,220
------------------------------------------------------------------
502,712 REMIC, 7.00%, 5/1/2026 494,538
------------------------------------------------------------------ -----------
Total 4,816,354
------------------------------------------------------------------ -----------
FEDERAL NATIONAL MORTGAGE ASSOCIATION--7.7%
------------------------------------------------------------------
1,000,000 8.50%, 2/1/2005 1,056,380
------------------------------------------------------------------
949,567 REMIC, 9.50%, 6/25/2018 1,015,685
------------------------------------------------------------------
372,053 REMIC, 9.50%, 7/25/2019 397,699
------------------------------------------------------------------ -----------
Total 2,469,764
------------------------------------------------------------------ -----------
TOTAL GOVERNMENT AGENCIES (IDENTIFIED COST $8,543,285) 8,553,221
------------------------------------------------------------------ -----------
U.S. TREASURY--27.9%
- ------------------------------------------------------------------------------------
U.S. TREASURY BONDS--16.9%
------------------------------------------------------------------
1,935,000 6.25%, 8/15/2023 1,818,203
------------------------------------------------------------------
1,670,000 6.75%, 8/15/2026 1,690,307
------------------------------------------------------------------
1,410,000 12.00%, 5/15/2005 1,930,530
------------------------------------------------------------------ -----------
Total 5,439,040
------------------------------------------------------------------ -----------
U.S. TREASURY NOTES--11.0%
------------------------------------------------------------------
290,000 6.25%, 4/30/2001 292,137
------------------------------------------------------------------
705,000 6.25%, 7/31/1998 711,514
------------------------------------------------------------------
</TABLE>
RIMCO MONUMENT BOND FUND
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
- ---------- ------------------------------------------------------------------ -----------
<C> <C> <S> <C>
U.S. TREASURY--CONTINUED
- ------------------------------------------------------------------------------------
U.S. TREASURY NOTES--CONTINUED
------------------------------------------------------------------
$1,920,000 6.75%, 4/30/2000 $ 1,966,445
------------------------------------------------------------------
525,000 9.125%, 5/15/1999 565,089
------------------------------------------------------------------ -----------
Total 3,535,185
------------------------------------------------------------------ -----------
TOTAL U.S. TREASURY (IDENTIFIED COST $8,813,114) 8,974,225
------------------------------------------------------------------ -----------
(A) REPURCHASE AGREEMENT--4.5%
- ------------------------------------------------------------------------------------
1,429,000 Dean Witter Reynolds, Inc., 5.49%, dated 10/31/1996, due 11/1/1996
(AT AMORTIZED COST) 1,429,000
------------------------------------------------------------------ -----------
TOTAL INVESTMENTS (IDENTIFIED COST $31,395,323)(B) $31,816,498
------------------------------------------------------------------ -----------
</TABLE>
(a) The repurchase agreement is fully collateralized by U.S. Treasury
obligations based on market prices at the date of the portfolio.
(b) The cost of investments for federal tax purposes amounts to $31,395,323. The
net unrealized appreciation of investments on a federal tax basis amounts to
$421,175 which is comprised of $603,041 appreciation and $181,866
depreciation at October 31, 1996.
Note: The categories of investments are shown as a percentage of net assets
($32,100,458) at October 31, 1996.
The following acronyms are used throughout this portfolio:
<TABLE>
<S> <C>
PAC -- Planned Amortization Class
REMIC -- Real Estate Mortgage Investment Conduit
</TABLE>
(See Notes which are an integral part of the Financial Statements)
RIMCO MONUMENT BOND FUND
STATEMENT OF ASSETS AND LIABILITIES
OCTOBER 31, 1996 (UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<S> <C> <C>
ASSETS:
- --------------------------------------------------------------------------------
Total investments in securities, at value (identified and tax cost $31,395,323) $31,816,498
- --------------------------------------------------------------------------------
Cash 1,624
- --------------------------------------------------------------------------------
Income receivable 474,726
- -------------------------------------------------------------------------------- -----------
Total assets 32,292,848
- --------------------------------------------------------------------------------
LIABILITIES:
- --------------------------------------------------------------------------------
Income distribution payable $170,097
- ---------------------------------------------------------------------
Accrued expenses 22,293
- --------------------------------------------------------------------- --------
Total liabilities 192,390
- -------------------------------------------------------------------------------- -----------
NET ASSETS for 3,347,389 shares outstanding $32,100,458
- -------------------------------------------------------------------------------- -----------
NET ASSETS CONSIST OF:
- --------------------------------------------------------------------------------
Paid in capital $35,243,909
- --------------------------------------------------------------------------------
Net unrealized appreciation of investments 421,175
- --------------------------------------------------------------------------------
Accumulated net realized loss on investments (3,564,626)
- -------------------------------------------------------------------------------- -----------
Total Net Assets $32,100,458
- -------------------------------------------------------------------------------- -----------
NET ASSET VALUE and Redemption Proceeds Per Share
($32,100,458 / 3,347,389 shares outstanding) $9.59
- -------------------------------------------------------------------------------- -----------
Offering Price Per Share (100/95.25 of $9.59)* $10.07
- -------------------------------------------------------------------------------- -----------
</TABLE>
* See "What Shares Cost" in the Prospectus.
(See Notes which are an integral part of the Financial Statements)
RIMCO MONUMENT BOND FUND
STATEMENT OF OPERATIONS
SIX MONTHS ENDED OCTOBER 31, 1996 (UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<S> <C> <C>
INVESTMENT INCOME:
- ---------------------------------------------------------------------------------
Interest $1,320,848
- ---------------------------------------------------------------------------------
EXPENSES:
- ---------------------------------------------------------------------------------
Investment advisory fee $138,988
- ----------------------------------------------------------------------
Administrative personnel and services fee 26,677
- ----------------------------------------------------------------------
Transfer and dividend disbursing agent fees and expenses 20,126
- ----------------------------------------------------------------------
Directors'/Trustees' fees 596
- ----------------------------------------------------------------------
Auditing fees 7,480
- ----------------------------------------------------------------------
Legal fees 1,764
- ----------------------------------------------------------------------
Portfolio accounting fees 26,908
- ----------------------------------------------------------------------
Share registration costs 6,953
- ----------------------------------------------------------------------
Printing and postage 6,027
- ----------------------------------------------------------------------
Insurance premiums 2,457
- ----------------------------------------------------------------------
Miscellaneous 7,418
- ---------------------------------------------------------------------- --------
Total expenses 245,394
- ----------------------------------------------------------------------
Waiver of investment advisory fee (74,127)
- ---------------------------------------------------------------------- --------
Net expenses 171,267
- --------------------------------------------------------------------------------- ----------
Net investment income 1,149,581
- --------------------------------------------------------------------------------- ----------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:
- ---------------------------------------------------------------------------------
Net realized loss on investments (443,878)
- ---------------------------------------------------------------------------------
Net change in unrealized appreciation of investments 633,999
- --------------------------------------------------------------------------------- ----------
Net realized and unrealized gain on investments 190,121
- --------------------------------------------------------------------------------- ----------
Change in net assets resulting from operations $1,339,702
- --------------------------------------------------------------------------------- ----------
</TABLE>
(See Notes which are an integral part of the Financial Statements)
RIMCO MONUMENT BOND FUND
STATEMENT OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SIX MONTHS ENDED
(UNAUDITED) YEAR ENDED
OCTOBER 31, 1996 APRIL 30, 1996
---------------- --------------
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
- --------------------------------------------------------
OPERATIONS--
- --------------------------------------------------------
Net investment income $ 1,149,581 $ 2,972,860
- --------------------------------------------------------
Net realized gain (loss) on investments ($443,878 net
loss and $695,702 net gain, respectively, as computed
for federal tax purposes) (443,878) 1,109,602
- --------------------------------------------------------
Net change in unrealized appreciation (depreciation) 633,999 (693,650)
- -------------------------------------------------------- -------------- -------------
Change in net assets resulting from operations 1,339,702 3,388,812
- -------------------------------------------------------- -------------- -------------
DISTRIBUTIONS TO SHAREHOLDERS--
- --------------------------------------------------------
Distributions from net investment income (1,149,581) (2,998,654)
- -------------------------------------------------------- -------------- -------------
SHARE TRANSACTIONS--
- --------------------------------------------------------
Proceeds from sale of shares 2,724,558 11,038,098
- --------------------------------------------------------
Net asset value of shares issued to shareholders in
payment of distributions declared 158,552 509,532
- --------------------------------------------------------
Cost of shares redeemed (21,891,333) (7,839,532)
- -------------------------------------------------------- -------------- -------------
Change in net assets resulting from share
transactions (19,008,223) 3,708,098
- -------------------------------------------------------- -------------- -------------
Change in net assets (18,818,102) 4,098,256
- --------------------------------------------------------
NET ASSETS:
- --------------------------------------------------------
Beginning of period 50,918,560 46,820,304
- -------------------------------------------------------- -------------- -------------
End of period $ 32,100,458 $ 50,918,560
- -------------------------------------------------------- -------------- -------------
</TABLE>
(See Notes which are an integral part of the Financial Statements)
RIMCO MONUMENT BOND FUND
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
(FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD)
<TABLE>
<CAPTION>
SIX MONTHS
ENDED
(UNAUDITED)
OCTOBER 31, YEAR ENDED APRIL 30,
----------- ----------------------------------------
1996 1996 1995 1994 1993(A)
----------- ------ ------ ------ -------
<S> <C> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD $ 9.47 $ 9.35 $ 9.46 $10.40 $10.00
- ------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS
- ------------------------------------------------
Net investment income 0.30 0.59 0.56 0.53 0.60
- ------------------------------------------------
Net realized and unrealized gain (loss) on
investments 0.12 0.12 (0.11) (0.38) 0.66
- ------------------------------------------------ -------- ------ ------ ------ -------
Total from investment operations 0.42 0.71 0.45 0.15 1.26
LESS DISTRIBUTIONS
- ------------------------------------------------
Distributions from net investment income (0.30) (0.59) (0.56) (0.53) (0.60)
- ------------------------------------------------
Distributions from net realized gains -- -- -- (0.56) (0.26)
- ------------------------------------------------ -------- ------ ------ ------ ------
Total distributions (0.30) (0.59) (0.56) (1.09) (0.86)
- ------------------------------------------------ -------- ------ ------ ------ ------
NET ASSET VALUE, END OF PERIOD $ 9.59 $ 9.47 $ 9.35 $ 9.46 $10.40
- ------------------------------------------------ -------- ------ ------ ------ ------
TOTAL RETURN (B) 4.52% 7.60% 5.01% 1.10% 12.93%
- ------------------------------------------------
RATIOS TO AVERAGE NET ASSETS
- ------------------------------------------------
Expenses 0.92%(c) 0.80% 0.80% 0.68% 0.50%(c)
- ------------------------------------------------
Net investment income 6.20%(c) 6.04% 6.06% 5.15% 5.95%(c)
- ------------------------------------------------
Expense waiver/reimbursement (d) 0.40%(c) 0.40% 0.40% 0.48% 0.65%(c)
- ------------------------------------------------
SUPPLEMENTAL DATA
- ------------------------------------------------
Net assets, end of period (000 omitted) $32,100 $50,919 $46,820 $47,552 $44,668
- ------------------------------------------------
Portfolio turnover 83% 128% 262% 344% 371%
- ------------------------------------------------
</TABLE>
(a) Reflects operations for the period from May 11, 1992 (date of initial public
investment) to April 30, 1993.
(b) Based on net asset value, which does not reflect the sales charge or
contingent deferred sales charge, if applicable.
(c) Computed on an annualized basis.
(d) This voluntary expense decrease is reflected in both the expense and net
investment income ratios shown above.
(See Notes which are an integral part of the Financial Statements)
RIMCO MONUMENT STOCK FUND
PORTFOLIO OF INVESTMENTS
OCTOBER 31, 1996 (UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
- --------- ------------------------------------------------------------------- -----------
<C> <C> <S> <C>
COMMON STOCKS--96.0%
- ------------------------------------------------------------------------------------
BASIC MATERIALS--3.3%
-------------------------------------------------------------------
37,050 Olin Corp. $ 1,574,625
-------------------------------------------------------------------
15,905 Potash Corporation of Saskatchewan, Inc. 1,127,267
------------------------------------------------------------------- -----------
Total 2,701,892
------------------------------------------------------------------- -----------
CAPITAL GOODS--7.9%
-------------------------------------------------------------------
13,400 Alco Standard Corp. 621,425
-------------------------------------------------------------------
31,335 Ingersoll-Rand Co. 1,304,319
-------------------------------------------------------------------
17,460 Rockwell International Corp. 960,300
-------------------------------------------------------------------
16,975 Textron, Inc. 1,506,531
-------------------------------------------------------------------
15,820 United Technologies Corp. 2,036,825
------------------------------------------------------------------- -----------
Total 6,429,400
------------------------------------------------------------------- -----------
CONSUMER CYCLICAL--10.1%
-------------------------------------------------------------------
14,765 (a) AMR Corp. 1,240,260
-------------------------------------------------------------------
28,275 Black & Decker Corp. 1,056,778
-------------------------------------------------------------------
63,660 Chrysler Corp. 2,140,567
-------------------------------------------------------------------
29,750 Gap (The), Inc. 862,750
-------------------------------------------------------------------
33,080 (a) Revco D.S., Inc. 996,535
-------------------------------------------------------------------
40,340 Sears Roebuck & Co. 1,951,447
------------------------------------------------------------------- -----------
Total 8,248,337
------------------------------------------------------------------- -----------
CONSUMER SERVICES--4.7%
-------------------------------------------------------------------
36,955 Deluxe Corp. 1,205,657
-------------------------------------------------------------------
16,230 Tribune Co. 1,326,802
-------------------------------------------------------------------
61,220 Wendy's International, Inc. 1,262,663
------------------------------------------------------------------- -----------
Total 3,795,122
------------------------------------------------------------------- -----------
CONSUMER STAPLES--15.6%
-------------------------------------------------------------------
53,730 American Stores Co. 2,223,079
-------------------------------------------------------------------
</TABLE>
RIMCO MONUMENT STOCK FUND
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
- --------- ------------------------------------------------------------------- -----------
<C> <C> <S> <C>
COMMON STOCKS--CONTINUED
- ------------------------------------------------------------------------------------
CONSUMER STAPLES--CONTINUED
-------------------------------------------------------------------
25,345 Coca Cola Co. $ 1,279,922
-------------------------------------------------------------------
40,520 ConAgra, Inc. 2,020,935
-------------------------------------------------------------------
16,295 Kimberly Clark Corp. 1,519,509
-------------------------------------------------------------------
17,175 Philip Morris Cos., Inc. 1,590,834
-------------------------------------------------------------------
41,665 RJR Nabisco Holdings Corp. 1,203,077
-------------------------------------------------------------------
37,875 (a) Safeway, Inc. 1,620,032
-------------------------------------------------------------------
8,210 Unilever N.V., ADR 1,255,104
------------------------------------------------------------------- -----------
Total 12,712,492
------------------------------------------------------------------- -----------
ENERGY--11.8%
-------------------------------------------------------------------
11,605 Atlantic Richfield Co. 1,537,663
-------------------------------------------------------------------
6,800 British Petroleum Co., PLC, ADR 874,650
-------------------------------------------------------------------
38,325 Coastal Corp. 1,647,975
-------------------------------------------------------------------
20,735 (a) Columbia Gas System, Inc. 1,259,651
-------------------------------------------------------------------
13,860 Mobil Corp. 1,618,155
-------------------------------------------------------------------
17,200 Texaco, Inc. 1,747,950
-------------------------------------------------------------------
22,285 Tidewater, Inc. 974,969
------------------------------------------------------------------- -----------
Total 9,661,013
------------------------------------------------------------------- -----------
FINANCIALS--14.2%
-------------------------------------------------------------------
39,390 American Express 1,851,330
-------------------------------------------------------------------
14,045 CIGNA Corp. 1,832,873
-------------------------------------------------------------------
16,715 Citicorp 1,654,785
-------------------------------------------------------------------
20,405 Franklin Resources, Inc. 1,438,553
-------------------------------------------------------------------
13,605 J.P. Morgan & Co., Inc. 1,175,132
-------------------------------------------------------------------
37,160 (a) Provident Cos., Inc. 1,379,565
-------------------------------------------------------------------
16,030 Student Loan Marketing Association 1,326,483
-------------------------------------------------------------------
49,490 USF&G Corp. 940,310
------------------------------------------------------------------- -----------
Total 11,599,031
------------------------------------------------------------------- -----------
</TABLE>
RIMCO MONUMENT STOCK FUND
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
- --------- ------------------------------------------------------------------- -----------
<C> <C> <S> <C>
COMMON STOCKS--CONTINUED
- ------------------------------------------------------------------------------------
HEALTHCARE--9.4%
-------------------------------------------------------------------
25,905 (a) Amgen, Inc. $ 1,588,300
-------------------------------------------------------------------
14,460 (a) Boston Scientific Corp. 786,263
-------------------------------------------------------------------
46,215 Columbia/HCA Healthcare Corp. 1,652,186
-------------------------------------------------------------------
33,250 (a) Oxford Health Plans, Inc. 1,512,875
-------------------------------------------------------------------
26,030 Pfizer, Inc. 2,153,982
------------------------------------------------------------------- -----------
Total 7,693,606
------------------------------------------------------------------- -----------
TECHNOLOGY--9.7%
-------------------------------------------------------------------
25,760 (a) Cisco Systems, Inc. 1,593,900
-------------------------------------------------------------------
13,785 Computer Associates International, Inc. 815,038
-------------------------------------------------------------------
8,280 Lucent Technologies, Inc. 389,160
-------------------------------------------------------------------
24,910 (a) Newbridge Networks Corp. 787,779
-------------------------------------------------------------------
19,710 (a) Sun Microsystems, Inc. 1,202,310
-------------------------------------------------------------------
12,950 (a) 3Com Corp. 875,744
-------------------------------------------------------------------
13,325 (a) U.S. Robotics Corp. 837,809
-------------------------------------------------------------------
30,220 Xerox Corp. 1,401,452
------------------------------------------------------------------- -----------
Total 7,903,192
------------------------------------------------------------------- -----------
UTILITIES-GAS & ELECTRIC--3.5%
-------------------------------------------------------------------
27,250 FPL Group, Inc. 1,253,500
-------------------------------------------------------------------
59,295 Illinova Corp. 1,615,789
------------------------------------------------------------------- -----------
Total 2,869,289
------------------------------------------------------------------- -----------
UTILITIES-TELEPHONE--5.8%
-------------------------------------------------------------------
29,325 Ameritech Corp. 1,605,544
-------------------------------------------------------------------
55,295 GTE Corp. 2,329,302
-------------------------------------------------------------------
15,695 SBC Communications, Inc. 763,169
------------------------------------------------------------------- -----------
Total 4,698,015
------------------------------------------------------------------- -----------
TOTAL COMMON STOCKS (IDENTIFIED COST $58,106,420) $78,311,389
------------------------------------------------------------------- -----------
</TABLE>
RIMCO MONUMENT STOCK FUND
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
- ---------- ------------------------------------------------------------------ -----------
<C> <C> <S> <C>
(B)REPURCHASE AGREEMENT--3.9%
- ------------------------------------------------------------------------------------
$3,166,000 Dean Witter Reynolds, Inc., 5.49%, dated 10/31/1996, due 11/1/1996
(AT AMORTIZED COST) $ 3,166,000
------------------------------------------------------------------ -----------
TOTAL INVESTMENTS (IDENTIFIED COST, $61,272,420)(C) $81,477,389
------------------------------------------------------------------ -----------
</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 $61,272,420. The
net unrealized appreciation/depreciation of investments on a federal tax
basis amounts to $20,204,969 which is comprised of $20,565,945 appreciation
and $360,976 depreciation at October 31, 1996.
Note: The categories of investments are shown as a percentage of net assets
($81,563,460) at October 31, 1996.
The following acronyms are used throughout this portfolio:
ADR -- American Depositary Receipt
PLC -- Public Limited Company
(See Notes which are an integral part of the Financial Statements)
RIMCO MONUMENT STOCK FUND
STATEMENT OF ASSETS AND LIABILITIES
OCTOBER 31, 1996 (UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<S> <C>
ASSETS:
- -------------------------------------------------------------------------------
Total investments in securities, at value (identified cost
and tax cost $61,272,420) $81,477,389
- -------------------------------------------------------------------------------
Cash 812
- -------------------------------------------------------------------------------
Income receivable 117,881
- ------------------------------------------------------------------------------- -----------
Total assets 81,596,082
- -------------------------------------------------------------------------------
LIABILITIES:
- -------------------------------------------------------------------------------
Accrued expenses $ 32,622
- ------------------------------------------------------------------------------- -----------
NET ASSETS for 4,853,226 shares outstanding $81,563,460
- ------------------------------------------------------------------------------- -----------
NET ASSETS CONSIST OF:
- -------------------------------------------------------------------------------
Paid-in capital $48,025,398
- -------------------------------------------------------------------------------
Net unrealized appreciation of investments 20,204,969
- -------------------------------------------------------------------------------
Accumulated net realized gain on investments 13,232,712
- -------------------------------------------------------------------------------
Undistributed net investment income 100,381
- ------------------------------------------------------------------------------- -----------
Total Net Assets $81,563,460
- ------------------------------------------------------------------------------- -----------
NET ASSET VALUE and Redemption Proceeds Per Share:
($81,563,460 / 4,853,226 shares outstanding) $16.81
- ------------------------------------------------------------------------------- -----------
Offering Price Per Share (100/94.25 of $16.81)* $17.84
- ------------------------------------------------------------------------------- -----------
</TABLE>
* See "What Shares Cost" in the Prospectus.
(See Notes which are an integral part of the Financial Statements)
RIMCO MONUMENT STOCK FUND
STATEMENT OF OPERATIONS
SIX MONTHS ENDED OCTOBER 31, 1996 (UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<S> <C> <C>
INVESTMENT INCOME:
- ---------------------------------------------------------------------------------
Interest $ 80,458
- ---------------------------------------------------------------------------------
Dividends 833,228
- --------------------------------------------------------------------------------- ----------
Total income 913,686
- ---------------------------------------------------------------------------------
EXPENSES:
- ---------------------------------------------------------------------------------
Investment advisory fee $304,181
- ----------------------------------------------------------------------
Administrative personnel and services fee 52,938
- ----------------------------------------------------------------------
Transfer and dividend disbursing agent fees and expenses 20,431
- ----------------------------------------------------------------------
Directors'/Trustees' fees 706
- ----------------------------------------------------------------------
Auditing fees 7,562
- ----------------------------------------------------------------------
Legal fees 2,017
- ----------------------------------------------------------------------
Portfolio accounting fees 25,051
- ----------------------------------------------------------------------
Share registration costs 7,787
- ----------------------------------------------------------------------
Printing and postage 6,554
- ----------------------------------------------------------------------
Insurance premiums 2,521
- ----------------------------------------------------------------------
Miscellaneous 7,180
- ---------------------------------------------------------------------- --------
Total expenses 436,928
- ----------------------------------------------------------------------
Waiver of investment advisory fee (48,669)
- ---------------------------------------------------------------------- --------
Net expenses 388,259
- --------------------------------------------------------------------------------- ----------
Net investment income 525,427
- --------------------------------------------------------------------------------- ----------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:
- ---------------------------------------------------------------------------------
Net realized gain on investments 4,141,198
- ---------------------------------------------------------------------------------
Net change in unrealized appreciation of investments 621,943
- --------------------------------------------------------------------------------- ----------
Net realized and unrealized gain on investments 4,763,141
- --------------------------------------------------------------------------------- ----------
Change in net assets resulting from operations $5,288,568
- --------------------------------------------------------------------------------- ----------
</TABLE>
(See Notes which are an integral part of the Financial Statements)
RIMCO MONUMENT STOCK FUND
STATEMENT OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SIX MONTHS
ENDED
(UNAUDITED) YEAR ENDED
OCTOBER 31, 1996 APRIL 30, 1996
---------------- --------------
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
- -------------------------------------------------------------
OPERATIONS--
- -------------------------------------------------------------
Net investment income $ 525,427 $ 989,355
- -------------------------------------------------------------
Net realized gain on investments ($4,141,199 and $12,721,408
respectively, as computed for federal tax purposes) 4,141,198 12,753,787
- -------------------------------------------------------------
Net change in unrealized appreciation of investments 621,943 8,924,816
- ------------------------------------------------------------- -------------- -------------
Change in net assets resulting from operations 5,288,568 22,667,958
- ------------------------------------------------------------- -------------- -------------
DISTRIBUTIONS TO SHAREHOLDERS--
- -------------------------------------------------------------
Distributions from net investment income (486,747) (984,777)
- -------------------------------------------------------------
Distributions from net realized gains -- (4,555,282)
- ------------------------------------------------------------- -------------- -------------
Change in net assets resulting from distributions to
shareholders (486,747) (5,540,059)
- ------------------------------------------------------------- -------------- -------------
SHARE TRANSACTIONS--
- -------------------------------------------------------------
Proceeds from sale of shares 8,209,293 18,698,038
- -------------------------------------------------------------
Net asset value of shares issued to shareholders in payment
of distributions declared 162,319 2,382,006
- -------------------------------------------------------------
Cost of shares redeemed (16,407,324) (19,429,239)
- ------------------------------------------------------------- -------------- -------------
Change in net assets resulting from share transactions (8,035,712) 1,650,805
- ------------------------------------------------------------- -------------- -------------
Change in net assets (3,233,891) 18,778,704
- -------------------------------------------------------------
NET ASSETS:
- -------------------------------------------------------------
Beginning of period 84,797,351 66,018,647
- ------------------------------------------------------------- -------------- -------------
End of period (including undistributed net investment income
of $100,381 and $61,701, respectively) $ 81,563,460 $ 84,797,351
- ------------------------------------------------------------- -------------- -------------
</TABLE>
(See Notes which are an integral part of the Financial Statements)
RIMCO MONUMENT STOCK FUND
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
(FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD)
<TABLE>
<CAPTION>
SIX MONTHS
ENDED
(UNAUDITED)
OCTOBER 31, YEAR ENDED APRIL 30,
----------- -------------------------------------
1996 1996 1995 1994 1993(A)
----------- ------ ------ ------ -------
<S> <C> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD $ 15.84 $12.69 $11.89 $10.46 $10.00
- ----------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS
- ----------------------------------------------------
Net Investment income 0.10 0.18 0.20 0.16 0.21
- ----------------------------------------------------
Net realized and unrealized gain on investments 0.97 4.00 1.39 1.44 0.46
- ---------------------------------------------------- -------- ------ ------ ------ -------
Total from investment operations 1.07 4.18 1.59 1.60 0.67
- ---------------------------------------------------- -------- ------ ------ ------ -------
LESS DISTRIBUTIONS
- ----------------------------------------------------
Distributions from net investment income (0.10) (0.18) (0.19) (0.16) (0.21)
- ----------------------------------------------------
Distributions from net realized gains -- (0.85) (0.60) (0.01) --
- ---------------------------------------------------- -------- ------ ------ ------ ------
Total distributions (0.10) (1.03) (0.79) (0.17) (0.21)
- ---------------------------------------------------- -------- ------ ------ ------ ------
NET ASSET VALUE, END OF PERIOD $ 16.81 $15.84 $12.69 $11.89 $10.46
- ---------------------------------------------------- -------- ------ ------ ------ ------
TOTAL RETURN (B) 6.76% 33.73% 14.16% 15.28% 6.35%
- ----------------------------------------------------
RATIOS TO AVERAGE NET ASSETS
- ----------------------------------------------------
Expenses 0.96%(c) 0.96% 0.98% 1.00% 0.69%(c)
- ----------------------------------------------------
Net investment income 1.30%(c) 1.26% 1.66% 1.36% 2.18%(c)
- ----------------------------------------------------
Expense waiver/reimbursement (d) 0.12%(c) 0.12% 0.14% 0.20% 0.47%(c)
- ----------------------------------------------------
SUPPLEMENTAL DATA
- ----------------------------------------------------
Net assets, end of period (000 omitted) $81,563 $84,797 $66,019 $58,597 $37,539
- ----------------------------------------------------
Average commission rate paid $0.0668 $0.0687 -- -- --
- ----------------------------------------------------
Portfolio turnover 27% 81% 46% 89% 92%
- ----------------------------------------------------
</TABLE>
(a) Reflects operations for the period from May 11, 1992 (date of initial public
investment) to April 30, 1993.
(b) Based on net asset value, which does not reflect the sales load or
contingent deferred sales charge, if applicable.
(c) Computed on an annualized basis
(d) This voluntary expense decrease is reflected in both the expense and net
investment income ratios shown above.
(See Notes which are an integral part of the Financial Statements)
RIMCO MONUMENT SMALL CAPITALIZATION EQUITY FUND
PORTFOLIO OF INVESTMENTS
OCTOBER 31, 1996 (UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
- ---------- ------------------------------------------------------------------ -----------
<C> <C> <S> <C>
COMMON STOCKS--89.6%
- ------------------------------------------------------------------------------------
BASIC MATERIALS--4.6%
------------------------------------------------------------------
11,040 Brush Wellman, Inc. $ 208,380
------------------------------------------------------------------
15,595 Calgon Carbon Corp. 155,950
------------------------------------------------------------------
14,200 Elcor Corp. 273,350
------------------------------------------------------------------
5,575 Medusa Corp. 183,278
------------------------------------------------------------------
6,755 Mississippi Chemical Corp. 169,719
------------------------------------------------------------------ -----------
Total 990,677
------------------------------------------------------------------ -----------
CAPITAL GOODS--4.1%
------------------------------------------------------------------
9,810 (a) Cable Design Technologies 255,060
------------------------------------------------------------------
9,445 (a) Exide Electronics Group, Inc. 115,701
------------------------------------------------------------------
17,570 JLG Industries, Inc. 263,550
------------------------------------------------------------------
15,175 (a) Trident International, Inc. 254,181
------------------------------------------------------------------ -----------
Total 888,492
------------------------------------------------------------------ -----------
CONSUMER CYCLICAL--11.3%
------------------------------------------------------------------
10,065 Claire's Stores, Inc. 171,105
------------------------------------------------------------------
13,432 Comair Holdings, Inc. 270,319
------------------------------------------------------------------
8,425 (a) Discount Auto Parts, Inc. 183,244
------------------------------------------------------------------
7,845 (a) Donna Karan International, Inc. 145,132
------------------------------------------------------------------
30,965 (a) Garden Ridge Corp. 298,038
------------------------------------------------------------------
6,135 (a) General Nutrition Cos., Inc. 111,964
------------------------------------------------------------------
3,835 (a) Nine West Group, Inc. 191,271
------------------------------------------------------------------
17,692 (a) PC Service Source, Inc. 128,267
------------------------------------------------------------------
19,057 Pier 1 Imports, Inc. 266,798
------------------------------------------------------------------
14,130 (a) REX Stores Corp. 134,235
------------------------------------------------------------------
</TABLE>
RIMCO MONUMENT SMALL CAPITALIZATION EQUITY FUND
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
- ---------- ------------------------------------------------------------------ -----------
<C> <C> <S> <C>
COMMON STOCKS--CONTINUED
- ------------------------------------------------------------------------------------
CONSUMER CYCLICAL--CONTINUED
------------------------------------------------------------------
26,155 (a) Sports & Recreation, Inc. $ 225,587
------------------------------------------------------------------
5,600 (a) Sunglass Hut International, Inc. 49,700
------------------------------------------------------------------
5,160 (a) Tommy Hilfiger Corp. 268,320
------------------------------------------------------------------ -----------
Total 2,443,980
------------------------------------------------------------------ -----------
CONSUMER SERVICES--15.3%
------------------------------------------------------------------
10,460 (a) Carmike Cinemas, Inc. 248,425
------------------------------------------------------------------
8,226 (a) HA-LO Industries, Inc. 255,006
------------------------------------------------------------------
12,952 (a) La Quinta Inns, Inc. 259,040
------------------------------------------------------------------
23,425 (a) Longhorn Steaks, Inc. 374,800
------------------------------------------------------------------
23,355 (a) National Education Corp. 379,519
------------------------------------------------------------------
9,517 Olsten Corp. 190,340
------------------------------------------------------------------
3,365 (a) Scholastic Corp. 246,486
------------------------------------------------------------------
6,735 (a) Scientific Games Holdings Corp. 152,379
------------------------------------------------------------------
21,415 (a) Silicon Gaming, Inc. 305,164
------------------------------------------------------------------
14,484 (a) Source Services Corp. 242,607
------------------------------------------------------------------
7,800 TCA Cable TV, Inc. 208,650
------------------------------------------------------------------
15,810 (a) Wackenhut Corrections Corp. 292,485
------------------------------------------------------------------
9,685 (a) York Group, Inc. 162,224
------------------------------------------------------------------ -----------
Total 3,317,125
------------------------------------------------------------------ -----------
CONSUMER STAPLES--2.0%
------------------------------------------------------------------
31,305 (a) Cott Corp 223,048
------------------------------------------------------------------
7,665 (a) Mondavi Robert Corp. 218,453
------------------------------------------------------------------ -----------
Total 441,501
------------------------------------------------------------------ -----------
ENERGY--8.3%
------------------------------------------------------------------
9,245 (a) BJ Services Company 414,869
------------------------------------------------------------------
12,520 (a) Petroleum Goe-Services, ADR 428,810
------------------------------------------------------------------
</TABLE>
RIMCO MONUMENT SMALL CAPITALIZATION EQUITY FUND
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
- ---------- ------------------------------------------------------------------ -----------
<C> <C> <S> <C>
COMMON STOCKS--CONTINUED
- ------------------------------------------------------------------------------------
19,545 (a) Pride Petroleum Services, Inc. $ 342,038
------------------------------------------------------------------
18,835 (a) Rowan Companies, Inc. 421,433
------------------------------------------------------------------
4,280 Tidewater, Inc. 187,250
------------------------------------------------------------------ -----------
Total 1,794,400
------------------------------------------------------------------ -----------
FINANCIAL--17.1%
------------------------------------------------------------------
15,635 Amresco, Inc. 330,289
------------------------------------------------------------------
11,840 Astoria Financial Corp. 418,840
------------------------------------------------------------------
20,960 (a) Dime Bancorp, Inc. 311,780
------------------------------------------------------------------
12,061 HUBCO, Inc. 259,318
------------------------------------------------------------------
8,860 (a) IMC Mortgage Co. 332,250
------------------------------------------------------------------
17,465 Money Store, Inc. 449,724
------------------------------------------------------------------
16,155 (a) Olympic Financial Ltd. 256,461
------------------------------------------------------------------
5,505 PMI Group, Inc. 314,473
------------------------------------------------------------------
3,795 Reliastar Financial Corp. 201,135
------------------------------------------------------------------
11,225 Sirrom Capital Corp. 409,713
------------------------------------------------------------------
5,191 Union Planters Corp. 180,387
------------------------------------------------------------------
9,255 Vesta Insurance Group, Inc. 237,159
------------------------------------------------------------------ -----------
Total 3,701,529
------------------------------------------------------------------ -----------
HEALTH CARE--13.1%
------------------------------------------------------------------
29,160 (a) Advance ParadigM, Inc. 236,925
------------------------------------------------------------------
12,515 Bergen Brunswig Corp. 392,658
------------------------------------------------------------------
8,287 Life Technologies, Inc. 192,673
------------------------------------------------------------------
7,590 (a) Lincare Holdings, Inc. 284,625
------------------------------------------------------------------
12,690 (a) Multicare Companies, Inc. 228,420
------------------------------------------------------------------
18,305 (a) NABI, Inc. 169,321
------------------------------------------------------------------
</TABLE>
RIMCO MONUMENT SMALL CAPITALIZATION EQUITY FUND
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
- ---------- ------------------------------------------------------------------ -----------
<C> <C> <S> <C>
COMMON STOCKS--CONTINUED
- ------------------------------------------------------------------------------------
HEALTH CARE--CONTINUED
------------------------------------------------------------------
10,065 (a) Sofamor Danek Group, Inc. $ 276,788
------------------------------------------------------------------
9,980 (a) Steris Corp. 376,745
------------------------------------------------------------------
17,640 (a) TheraTx, Inc. 176,400
------------------------------------------------------------------
11,540 (a) Wellpoint Health Networks, Inc. 343,315
------------------------------------------------------------------
5,625 (a) Xomed Surgical Products, Inc. 145,547
------------------------------------------------------------------ -----------
Total 2,823,417
------------------------------------------------------------------ -----------
TECHNOLOGY--10.9%
------------------------------------------------------------------
21,780 (a) CHS Electronics, Inc. 239,580
------------------------------------------------------------------
11,215 (a) Cadence Design Systems, Inc. 409,347
------------------------------------------------------------------
32,190 (a) Compucom System, Inc. 313,852
------------------------------------------------------------------
4,265 (a) Computer Horizons Corp. 132,215
------------------------------------------------------------------
16,565 (a) Computervision Corp. 149,085
------------------------------------------------------------------
3,800 (a) Electronics for Imaging, Inc. 273,600
------------------------------------------------------------------
4,015 (a) PictureTel Corp. 108,405
------------------------------------------------------------------
12,158 (a) Pinnacle Systems, Inc. 132,218
------------------------------------------------------------------
7,345 (a) Sawtek, Inc. 222,186
------------------------------------------------------------------
14,250 (a) Tech Data Corp. 366,938
------------------------------------------------------------------ -----------
Total 2,347,426
------------------------------------------------------------------ -----------
UTILITIES-GAS & ELECTRIC--1.3%
------------------------------------------------------------------
11,151 TNP Enterprises, Inc. 288,532
------------------------------------------------------------------ -----------
UTILITIES-TELEPHONE--1.6%
------------------------------------------------------------------
11,020 (a) LCI International, Inc. 351,263
------------------------------------------------------------------ -----------
TOTAL COMMON STOCKS (IDENTIFIED COST $16,525,006) 19,388,342
------------------------------------------------------------------ -----------
</TABLE>
RIMCO MONUMENT SMALL CAPITALIZATION EQUITY FUND
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
- ---------- ------------------------------------------------------------------ -----------
<C> <C> <S> <C>
(B)REPURCHASE AGREEMENT--10.4%
- ------------------------------------------------------------------------------------
$2,260,000 Dean Witter Reynolds, Inc. 5.49%, dated 10/31/1996, due 11/1/1996
(AT AMORTIZED COST) $ 2,260,000
------------------------------------------------------------------ -----------
TOTAL INVESTMENTS (IDENTIFIED COST $18,785,006)(C) $21,648,342
------------------------------------------------------------------ -----------
</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 $18,785,006. The
net unrealized appreciation of investments on a federal tax basis amounts to
$2,863,336 which is comprised of $4,238,783 appreciation and $1,375,447
depreciation at October 31, 1996.
Note: The categories of investments are shown as a percentage of net assets
($21,630,827) at October 31, 1996.
The following acronym is used throughout this portfolio:
ADR -- American Depository Receipt
(See Notes which are an integral part of the Financial Statements)
RIMCO MONUMENT SMALL CAPITALIZATION EQUITY FUND
STATEMENT OF ASSETS AND LIABILITIES
OCTOBER 31, 1996 (UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<S> <C> <C>
ASSETS:
- -------------------------------------------------------------------
Investments in repurchase agreements $ 2,260,000
- -------------------------------------------------------------------
Investments in securities 19,388,342
- ------------------------------------------------------------------- -----------
Total investments, at value (identified and tax cost $18,785,006) $21,648,342
- ---------------------------------------------------------------------------------
Cash 942
- ---------------------------------------------------------------------------------
Income receivable 9,265
- ---------------------------------------------------------------------------------
Deferred expenses 3,137
- --------------------------------------------------------------------------------- -----------
Total assets 21,661,686
- ---------------------------------------------------------------------------------
LIABILITIES:
- ---------------------------------------------------------------------------------
Accrued expenses 30,859
- --------------------------------------------------------------------------------- -----------
Net Assets for 1,585,127 shares outstanding $21,630,827
- --------------------------------------------------------------------------------- -----------
NET ASSETS CONSIST OF:
- ---------------------------------------------------------------------------------
Paid in capital $17,431,112
- ---------------------------------------------------------------------------------
Net unrealized appreciation of investments 2,863,336
- ---------------------------------------------------------------------------------
Accumulated net realized gain on investments 1,336,379
- --------------------------------------------------------------------------------- -----------
Total Net Assets $21,630,827
- --------------------------------------------------------------------------------- -----------
NET ASSET VALUE and Redemption Proceeds Per Share:
($21,630,827 / 1,585,127 shares outstanding) $13.65
- --------------------------------------------------------------------------------- -----------
Offering Price Per Share (100/94.25 of $13.65)* $14.48
- --------------------------------------------------------------------------------- -----------
</TABLE>
* See "What Shares Cost" in the Prospectus.
(See Notes which are an integral part of the Financial Statements)
RIMCO MONUMENT SMALL CAPITALIZATION EQUITY FUND
STATEMENT OF OPERATIONS
SIX MONTHS ENDED OCTOBER 31, 1996 (UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<S> <C> <C>
INVESTMENT INCOME:
- --------------------------------------------------------------------------------
Dividends $ 53,371
- --------------------------------------------------------------------------------
Interest 39,728
- -------------------------------------------------------------------------------- -----------
Total investment income 93,099
- --------------------------------------------------------------------------------
EXPENSES:
- --------------------------------------------------------------------------------
Investment advisory fee $ 82,947
- ---------------------------------------------------------------------
Administrative personnel and services fee 25,183
- ---------------------------------------------------------------------
Transfer and dividend disbursing agent fees and expenses 11,922
- ---------------------------------------------------------------------
Directors'/Trustees' fees 560
- ---------------------------------------------------------------------
Auditing fees 6,412
- ---------------------------------------------------------------------
Legal fees 1,773
- ---------------------------------------------------------------------
Portfolio accounting fees 25,666
- ---------------------------------------------------------------------
Share registration costs 6,791
- ---------------------------------------------------------------------
Printing and postage 4,467
- ---------------------------------------------------------------------
Insurance premiums 1,843
- ---------------------------------------------------------------------
Miscellaneous 3,499
- --------------------------------------------------------------------- --------
Total expenses 171,063
- ---------------------------------------------------------------------
Waiver of investment advisory fee (55,077)
- --------------------------------------------------------------------- --------
Net expenses 115,986
- -------------------------------------------------------------------------------- -----------
Net operating loss (22,887)
- -------------------------------------------------------------------------------- -----------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:
- --------------------------------------------------------------------------------
Net realized gain on investments 556,694
- --------------------------------------------------------------------------------
Net change in unrealized appreciation of investments (1,247,022)
- -------------------------------------------------------------------------------- -----------
Net realized and unrealized gain on investments (690,328)
- -------------------------------------------------------------------------------- -----------
Change in net assets resulting from operations $ (713,215)
- -------------------------------------------------------------------------------- -----------
</TABLE>
(See Notes which are an integral part of the Financial Statements)
RIMCO MONUMENT SMALL CAPITALIZATION EQUITY FUND
STATEMENT OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SIX MONTHS
ENDED
(UNAUDITED) YEAR ENDED
OCTOBER 31, 1996 APRIL 30, 1996
---------------- --------------
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
- --------------------------------------------------------
OPERATIONS--
- --------------------------------------------------------
Net operating loss $ (22,887) $ (19,299)
- --------------------------------------------------------
Net realized gain (loss) on investments ($556,694 and
$1,248,100, respectively, as computed for federal tax
purposes) 556,694 1,243,022
- --------------------------------------------------------
Net change in unrealized appreciation (depreciation) (1,247,022) 3,821,076
- -------------------------------------------------------- -------------- -------------
Change in net assets resulting from operations (713,215) 5,044,799
- -------------------------------------------------------- -------------- -------------
DISTRIBUTIONS TO SHAREHOLDERS--
- --------------------------------------------------------
Distributions from net investment income -- (11,338)
- --------------------------------------------------------
Distributions from net realized gains -- (431,812)
- -------------------------------------------------------- -------------- -------------
Change in net assets resulting from distributions
to shareholders -- (443,150)
- -------------------------------------------------------- -------------- -------------
SHARE TRANSACTIONS--
- --------------------------------------------------------
Proceeds from sale of shares 4,493,937 11,178,111
- --------------------------------------------------------
Net asset value of shares issued to shareholders in
payment of distributions declared -- 10,491
- --------------------------------------------------------
Cost of shares redeemed (1,439,276) (4,110,287)
- -------------------------------------------------------- -------------- -------------
Change in net assets resulting from share
transactions 3,054,661 7,078,315
- -------------------------------------------------------- -------------- -------------
Change in net assets 2,341,446 11,679,964
- --------------------------------------------------------
NET ASSETS:
- --------------------------------------------------------
Beginning of period 19,289,381 7,609,417
- -------------------------------------------------------- -------------- -------------
End of period $ 21,630,827 $ 19,289,381
- -------------------------------------------------------- -------------- -------------
</TABLE>
(See Notes which are an integral part of the Financial Statements)
RIMCO MONUMENT SMALL CAPITALIZATION EQUITY FUND
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
(FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD)
<TABLE>
<CAPTION>
SIX MONTHS
ENDED
(UNAUDITED) YEAR ENDED APRIL
OCTOBER 31, 30,
----------- -------------------
1996 1996 1995(A)
----------- ------ -------
<S> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD $ 14.10 $10.43 $10.00
- ----------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS
- ----------------------------------------------------------
Net investment income (operating loss) (0.02) (0.02) 0.02
- ----------------------------------------------------------
Net realized and unrealized gain (loss) on investments (0.43) 4.05 0.41
- ---------------------------------------------------------- -------- ------ ------
Total from investment operations (0.45) 4.03 0.43
- ----------------------------------------------------------
LESS DISTRIBUTIONS
- ----------------------------------------------------------
Distributions from net investment income -- (0.01) --
- ----------------------------------------------------------
Distributions from net realized gain on investments -- (0.35) --
- ---------------------------------------------------------- -------- ------ ------
Total distributions -- (0.36) --
- ---------------------------------------------------------- -------- ------ ------
NET ASSET VALUE, END OF PERIOD $ 13.65 $14.10 $10.43
- ---------------------------------------------------------- -------- ------ ------
TOTAL RETURN (B) (3.19%) 39.43% 4.30%
- ----------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS
- ----------------------------------------------------------
Expenses 1.12% (c) 1.14% 1.66%(c)
- ----------------------------------------------------------
Net investment income (operating loss) (0.22%)(c) (0.13%) 0.98%(c)
- ----------------------------------------------------------
Expense waiver/reimbursement (d) 0.53% (c) 0.80% 1.54%(c)
- ----------------------------------------------------------
SUPPLEMENTAL DATA
- ----------------------------------------------------------
Net assets, end of period (000 omitted) $21,631 $19,289 $7,609
- ----------------------------------------------------------
Average commission rate paid $0.0600 $0.0650 --
- ----------------------------------------------------------
Portfolio turnover 28% 70% 8%
- ----------------------------------------------------------
</TABLE>
(a) Reflects operations for the period from February 27, 1995 (date of initial
public investment) to April 30, 1995.
(b) Based on net asset value, which does not reflect the sales charge or
contingent deferred sales charge, if applicable.
(c) Computed on an annualized basis.
(d) This voluntary expense decrease is reflected in both the expense and net
investment income ratios shown above.
(See Notes which are an integral part of the Financial Statements)
RIMCO MONUMENT FUNDS
COMBINED NOTES TO FINANCIAL STATEMENTS
OCTOBER 31, 1996 (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. For the money market Funds within the Trust, the use
of the amortized cost method to value portfolio securities is in accordance
with Rule 2a-7 under the Act. For fluctuating net asset value Funds within
the Trust, short-term securities are valued at the prices provided by an
independent pricing service. However, short-term securities purchased with
remaining maturities of sixty days or less may be valued at amortized cost,
which approximates fair market value.
RIMCO MONUMENT FUNDS
- --------------------------------------------------------------------------------
REPURCHASE AGREEMENTS--It is the policy of the Funds to require the
custodian bank to take possession, to have legally segregated in the
Federal Reserve Book Entry System, or to have segregated within the
custodian bank's vault, all securities held as collateral under repurchase
agreement transactions. Additionally, procedures have been established by
the Funds to monitor, on a daily basis, the market value of each repurchase
agreement's collateral to ensure that the value of collateral at least
equals the repurchase price to be paid under the repurchase agreement
transaction.
The Funds will only enter into repurchase agreements with banks and other
recognized financial institutions, such as broker/dealers, which are deemed
by the Funds' adviser to be creditworthy pursuant to the guidelines and/or
standards reviewed or established by the Board of Trustees (the
"Trustees"). Risks may arise from the potential inability of counterparties
to honor the terms of the repurchase agreement. Accordingly, the Funds
could receive less than the repurchase price on the sale of collateral
securities.
INVESTMENT INCOME, EXPENSES AND DISTRIBUTIONS--Interest income and expenses
are accrued daily. Bond premium and discount, if applicable, are amortized
as required by the Internal Revenue Code, as amended (the "Code"). Dividend
income and distributions to shareholders are recorded on the ex-dividend
date.
FEDERAL TAXES--It is the Funds' policy to comply with the provisions of the
Code applicable to regulated investment companies and to distribute to
shareholders each year substantially all of their income. Accordingly, no
provisions for federal tax are necessary.
At April 30, 1996, the Prime Fund and Bond Fund, for federal tax purposes,
had a capital loss carryforward of $857,393 and $3,106,007, respectively,
which will reduce each Fund's taxable income arising from future net
realized gains on investments, if any, to the extent permitted by the Code,
and thus will reduce the amount of the distributions to shareholders which
would otherwise be necessary to relieve the Prime Fund and Bond Fund of any
liability for federal tax. Pursuant to the Code, such capital loss
carryforward of the Prime Fund will expire 2002 ($836,919) and 2003
($20,474). The capital loss carryforward of the Bond Fund will expire 2003
($3,106,007).
Additionally, a net capital loss of $15,718 for the Prime Fund,
attributable to security transactions incurred after October 31, 1995, are
treated as arising on May 1, 1996, the first day of the Fund's next taxable
year.
WHEN-ISSUED AND DELAYED DELIVERY TRANSACTIONS--The Funds may engage in
when-issued or delayed delivery transactions. The Funds record when-issued
securities on the trade date and maintain security positions such that
sufficient liquid assets will be available to make payment for the
securities purchased. Securities purchased on a when-issued or delayed
delivery basis are marked to market daily and begin earning interest on the
settlement date.
DEFERRED EXPENSES--The costs incurred by each Fund with respect to
registration of their shares in their first fiscal year, excluding the
initial expense of registering their shares, have been deferred
RIMCO MONUMENT FUNDS
- --------------------------------------------------------------------------------
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,
1996 1996
- ------------------------------------------------------------------------------------ ------------ ------------
<S> <C> <C>
Shares sold 153,671,562 436,204,901
- ------------------------------------------------------------------------------------
Shares issued to shareholders in payment of distributions declared 289,730 773,387
- ------------------------------------------------------------------------------------
Shares redeemed (110,607,554) (410,963,751)
- ------------------------------------------------------------------------------------ ----------- -----------
Net change resulting from share transactions 43,353,738 26,014,537
- ------------------------------------------------------------------------------------ ----------- -----------
</TABLE>
<TABLE>
<CAPTION>
PRIME FUND
-----------------------------
SIX MONTHS
ENDED YEAR ENDED
OCTOBER 31, APRIL 30,
CLASS A SHARES 1996 1996
- ------------------------------------------------------------------------------------ ------------ ------------
<S> <C> <C>
Shares sold 521,649,939 993,934,310
- ------------------------------------------------------------------------------------
Shares issued to shareholders in payment of distributions declared 2,425,937 3,827,511
- ------------------------------------------------------------------------------------
Shares redeemed (573,560,121) (913,943,749)
- ------------------------------------------------------------------------------------ ----------- -----------
Net change resulting from Class A Shares transactions (49,484,245) 83,818,072
- ------------------------------------------------------------------------------------ ----------- -----------
</TABLE>
RIMCO MONUMENT FUNDS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRIME FUND
-------------------------------
SIX MONTHS
ENDED YEAR ENDED
OCTOBER 31, APRIL 30,
CLASS B SHARES 1996 1996*
- -------------------------------------------------------------------------------- ------------ --------------
<S> <C> <C>
Shares sold 13,690,251 10,100
- -------------------------------------------------------------------------------
Shares issued to shareholders in payment of distributions declared 3 2
- -------------------------------------------------------------------------------
Shares redeemed (7,500,103) --
- ------------------------------------------------------------------------------- ----------- -----------
Net change resulting from Class B Shares transactions 6,190,151 10,102
- ------------------------------------------------------------------------------- ----------- -----------
Net change resulting from share transactions (43,294,094) 83,828,174
- ------------------------------------------------------------------------------- ----------- -----------
</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,
1996 1996 1996 1996 1996 1996
- ------------------------------------------- ----------- --------- ----------- ---------- ----------- ---------
<S> <C> <C> <C> <C> <C> <C>
Shares sold 21,158 1,124,984 512,303 1,281,444 322,162 975,448
- ------------------------------------------
Shares issued to shareholders in payment of
distributions declared 284,652 52,178 10,054 162,712 -- 889
- ------------------------------------------
Shares redeemed (2,336,793) (803,997) (1,022,239) (1,293,310) (104,893) (338,047)
- ------------------------------------------ ---------- -------- ---------- --------- -------- --------
Net change resulting from share
transactions (2,030,983) 373,165 (499,882) 150,846 217,269 638,290
- ------------------------------------------ ---------- -------- ---------- --------- -------- --------
</TABLE>
* For the period from December 12, 1995 (date of initial public investment) to
April 30, 1996.
(4) INVESTMENT ADVISORY FEE AND OTHER TRANSACTIONS WITH AFFILIATES
INVESTMENT ADVISORY FEE--Riggs Investment Management Corp., the Trust's
investment adviser (the "Adviser"), receives for its services an annual
investment advisory fee based on a percentage of each Fund's average daily net
assets (see below). The Adviser may voluntarily choose to waive a portion of its
fee. The Adviser can modify or terminate this voluntary waiver at any time at
its sole discretion.
<TABLE>
<CAPTION>
ANNUAL
FUND RATE
--------------------------------------------------------- ------
<S> <C>
Treasury Fund 0.50%
---------------------------------------------------------
Prime Fund 0.50%
---------------------------------------------------------
Bond Fund 0.75%
---------------------------------------------------------
Stock Fund 0.75%
---------------------------------------------------------
Small Capitalization Fund 0.80%
---------------------------------------------------------
</TABLE>
RIMCO MONUMENT FUNDS
- --------------------------------------------------------------------------------
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.
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 Trust's accounting records for
which it receives a fee. The fee is based on the level of each Fund's average
daily net assets for the period, plus out-of-pocket expenses.
CUSTODIAN FEES--Riggs National Bank is the Trust's custodian. The fee is based
on the level of each Fund's average daily net assets for the period, plus
out-of-pocket expenses.
ORGANIZATIONAL EXPENSES--Organizational expenses were borne initially by FAS.
The Funds have agreed to reimburse FAS for the organizational expenses during
the five year period following each Fund's effective date. For the six months
ended October 31, 1996, the following amounts were paid pursuant to this
agreement:
<TABLE>
<CAPTION>
ORGANIZATIONAL
EXPENSES
PAID FOR THE
ORGANIZATIONAL SIX MONTHS ENDED
FUND EFFECTIVE DATE EXPENSES OCTOBER 31, 1996
- --------------------------------------- ---------------- -------------- ----------------
<S> <C> <C> <C>
Treasury Fund July 30, 1991 $ 50,507 $1,254
- ---------------------------------------
Bond Fund July 30, 1991 29,704 2,475
- ---------------------------------------
Stock Fund July 30, 1991 30,877 2,573
- ---------------------------------------
Small Capitalization Fund February 6, 1995 22,693 756
- ---------------------------------------
</TABLE>
GENERAL--Certain of the Officers and Trustees of the Trust are Officers and
Directors or Trustees of the above companies.
RIMCO MONUMENT FUNDS
- --------------------------------------------------------------------------------
(5) INVESTMENT TRANSACTIONS
Purchases and sales of investments, excluding short-term obligations, for the
six months ended October 31, 1996, were as follows:
<TABLE>
<CAPTION>
FUND PURCHASES SALES
- ----------------------------------------------------------------- ----------- -----------
<S> <C> <C>
Bond Fund $29,462,760 $46,146,746
- ----------------------------------------------------------------- ----------- -----------
Stock Fund $21,294,181 $29,652,847
- ----------------------------------------------------------------- ----------- -----------
Small Capitalization Fund $ 8,592,647 $ 5,994,710
- ----------------------------------------------------------------- ----------- -----------
</TABLE>
<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 risk, including possible loss of principal. Although money market
funds seek to maintain a stable net asset value of $1.00 per share, there is no
assurance that they will be able to do so.
This report is authorized for distribution to prospective investors only when
preceded or accompanied by the Funds' prospectus which contains facts concerning
the Funds' objective and policies, management fees, expenses and other
information.
