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Previous: RIGGS FUNDS, NSAR-A, 1998-12-30 |
Next: FORTIS WORLDWIDE PORTFOLIOS INC, NSAR-B/A, 1998-12-30 |
Combined Semi-Annual
Report to Shareholders
October 31,1998
- --------------------------------------------------------------------------------
Riggs U.S. Treasury Money Market Fund
Riggs Prime Money Market Fund
Riggs U.S. Government Securities Fund
Riggs Stock Fund
Riggs Small Company Stock Fund
Mutual Funds are not FDIC insured and are not deposits or obligations of or
guaranteed by Riggs Bank N.A. They involve investment risks, including the
possible loss of the principal amount invested.
Federated Securities Corp., Distributor [LOGO RIGGS FUNDS]
PRESIDENT'S MESSAGE
Dear Investor:
I am pleased to present the Semi-Annual Report for the Riggs Funds for the first
half of the funds' current fiscal year, which is the six-month reporting period
ended October 31, 1998. It begins with an investment commentary by each
portfolio manager, followed by a complete list of holdings and the financial
statements for the Riggs U.S. Treasury Money Market Fund, Riggs Prime Money
Market Fund, Riggs U.S. Government Securities Fund, Riggs Stock Fund, and Riggs
Small Company Stock Fund.
The following highlights summarize the fund's performance over the six-month
reporting period:
Riggs U.S. Treasury Money Market Fund
This is the most conservative Riggs fund, which is managed to help shareholders
earn daily income on their ready cash through a portfolio of direct U.S.
Treasury money market securities or repurchase agreements fully backed by U.S.
Treasury securities. The fund's portfolio of U.S. Treasury money market
securities paid dividends totaling $0.02 per share for Class Y Shares and $0.01
per share for Class R Shares over the reporting period.* Assets in the fund
totaled $109.3 million at the end of the period.
Riggs Prime Money Market Fund
This fund helps shareholders earn daily income on their ready cash through a
portfolio of high-quality money market securities. The fund's Class Y Shares and
Class R Shares each paid dividends totaling $0.02 per share.* The fund ended the
reporting period with total assets of $284.1 million.
Riggs U.S. Government Securities Fund
This fund's government-focused bond portfolio paid Class R Share dividends
totaling $0.27 per share, while its net asset value rose from $9.77 to $10.15.
The dividends and net asset value increase resulted in a total return of 6.24%,
or 4.24% adjusted for the sales charge.** The fund's $37.7 million in assets at
the end of the reporting period were invested across government agency
securities (73.2%) and U.S. Treasury obligations (21.7%), corporate bonds
(2.7%), and a repurchase agreement (1.5%).
Riggs Stock Fund
After many years of positive returns, the U.S. stock market experienced
difficulties during the reporting period. As a result, the fund's diversified
portfolio of high-quality stocks--which included many household names like
American Express, AT&T, Intel, Merck, Mobil, RJR Nabisco, Sears, and Xerox--
produced a negative total return. The Class B Shares return was (10.63%), or
(14.20%) adjusted for the sales charge. The Class R Shares total return was
(9.88%), or (11.67%) adjusted for the sales charge.** The returns of both share
classes were due to changes in their net asset values. The fund's net assets
totaled $96.9 million at the end of the reporting period.
Riggs Small Company Stock Fund
As the most aggressive fund in the Riggs family, the fund invests in carefully
selected stocks issued by small companies.+ Small-company stocks were
particularly impacted during the reporting period's stock market decline.
Reflecting the decline in values among small-company stocks, the fund's total
return was highly negative. The Class B Shares return was (24.87%), or (27.87%)
adjusted for the sales charge. The Class R Shares total return was (30.96%) or
(32.34%) adjusted for the fund's sales charge.** The returns of both share
classes were due to changes in their net asset values. At the end of the
reporting period, fund assets totaled $38.7 million.
The past six months proved to be a difficult period for stock investors. Whether
you are a stock or bond investor, in times like these, it's particularly
important to keep focused on the long-term--which is the true measure of
performance. Of course, if you are a money market fund investor, your outlook is
considerably shorter--your money is at work earning daily income and ready
whenever you need it.
However near or far your financial goals are, thank you for selecting one or
more Riggs Funds. We will continue to keep you up-to-date on your progress.
Sincerely,
/s/ Edward C. Gonzales
Edward C. Gonzales
President
December 15, 1998
* An investment in the funds is neither insured nor guaranteed by the Federal
Deposit Insurance Corporation or any other government agency. Although the
funds seek to preserve the value of your investment at $1.00 per share, it is
possible to lose money by investing in the funds.
** 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
Riggs U.S. Government Securities Fund
Rates on U.S. Treasury securities eroded gradually from April through July 1998,
while the yield curve between the two- and thirty- year securities was
flattening in response to a generally slowing economy. This environment changed
radically in August and September as the U.S. equity markets declined following
Russia's debt problems, and hedge fund troubles led to a "flight to quality."
This flight to quality caused the spread between treasuries and other fixed
income instruments to widen to levels not seen in eight years. Furthermore, the
demand for liquidity was so pronounced that the spread between the on-the-run
treasury issue (the latest treasury security announced) and the off-the-run
issues (old treasury issues) widened to unprecedented levels. This widening in
spreads caused the Federal Reserve Board ("Fed") to ease 25 basis points in late
September and again in mid-October. The uncertainty and lack of liquidity in
fixed income markets led to a sizeable steepening in the yield curve as
liquidity demands and expectations on Fed easing led short rates down to around
4.00% in early October and long bond yields to record lows of 4.693%.
The Fed's easing actions have stabilized both the equity and bond markets. In
addition, the easing has led to a narrowing in liquidity and credit spreads.
These spreads should continue to narrow or stabilize, so long as the equity
market remains stable. Any substantial deterioration in the equity market,
however, would likely lead to a rally in treasuries and a widening of spreads.
Going forward, we expect the direction of interest rates to be determined by the
depth and duration of the anticipated economic slowdown. If the slowdown is more
severe than expected, then interest rates are likely to decline further as the
Fed continues to lower short-term rates. On the other hand, the lack of an
economic slowdown would likely shift expectations away from Fed easing and
result in an adjustment in the yield curve.
Riggs Prime Money Market Fund
Riggs U.S. Treasury Money Market Fund
The U.S. economy appeared to be in a weakening trend along with Asia and Europe
between April and October 1998. Consumer confidence continued to fall
accompanied by a slowdown in the housing market. Inflation remained low and
commodity prices continued to decline with the price of oil at a 12 year low. It
was a turbulent period for the bond market with ongoing problems in Asia coupled
with a deterioration of several international economies. In addition, the
financial problems at Long Term Capital Management were exposed in September
leading to speculation of further hedge fund liquidations. As a result, there
were rapid inflows in the U.S. Treasury markets as investors, both U.S. and
abroad, sought safety and liquidity. Yields across the Treasury curve were down
dramatically during this period with the 2-year Treasury moving from 5.50% to
4.12%. The Fed lowered the federal funds rate twice through October by a total
of 50 basis points ("bps") to 5.00%. Treasury bill yields remained well below
the federal funds rate with both three- and six-month bills down 75 bps.
Commercial paper rates were down as well with 3-month paper declining from 5.57%
to 5.14% and 9-month paper declining even more dramatically from 5.70% to 4.72%.
Riggs Stock Fund
Riggs Small Company Stock Fund
The volatility in the stock markets worldwide characterized the past six month
reporting period ended October 31, 1998. While our domestic economy experienced
solid growth in gross domestic product with low inflation, a flight to the
largest and highest quality securities seemed to be the focus in the equity
markets as concerns regarding the impact of global forces on our shores was a
significant factor in returns.
Our investment philosophy in managing both equity funds is to balance long-term
valuation with the catalyst of short-term earnings acceleration. We employ our
methodology; which we call Value/Momentum, by analyzing four key factors: (1)
relative value; (2) earnings growth relative to the stock's price-to-earnings
multiple; (3) earnings estimate revisions; and (4) relative price strength. For
stocks scoring highly in this process, we focus on the fundamental changes that
management is implementing within these companies to generate earnings growth.
We then choose to invest in those companies in which we have the most confidence
in management.
As we mentioned in our last report, the markets have been extremely volatile.
Volatility works both up and down. The global changes taking place are
significant and it will take time for governments overseas to adjust to a more
open free market system.
Our investment philosophy is our anchor in the storms. While we may be buffeted
in the near term, we stay focused on the important characteristics of stocks,
seeking out those companies that offer attractive valuation and the catalyst of
an accelerating earnings stream.
A Special Meeting of Shareholders of RIMCO Monument Bond Fund (the "Bond Fund")
(since renamed Riggs U.S. Government Securities Fund), RIMCO Monument Stock Fund
(the "Stock Fund") (since renamed Riggs Stock Fund), and RIMCO Monument Small
Capitalization Equity Fund (the "Small Capitalization Equity Fund") (since
renamed Riggs Small Company Stock Fund) was held on June 19, 1998. On April 20,
1998, the record date for shareholders voting at the meeting, there were
3,496,359 total outstanding shares of the Bond Fund; 7,031,764 total outstanding
shares of the Stock Fund; and 2,990,514 total outstanding shares of the Small
Capitalization Equity Fund. The following item was considered by shareholders
and the results of their voting were as follows:
To approve or disapprove a Distribution Plan pursuant to Rule 12b-1 of the
Investment Company Act of 1940, as amended, on behalf of each of the Bond Fund,
Stock Fund, and Small Capitalization Equity Fund.
<TABLE>
<CAPTION>
For Against Abstain
--------- ------- -------
<S> <C> <C> <C>
Bond Fund 2,816,055 5,719 7,937
Stock Fund 4,500,652 130,884 11,949
Small Capitalization Equity Fund 2,543,423 26,224 20,349
</TABLE>
PORTFOLIO OF INVESTMENTS
Riggs U.S. Treasury Money Market Fund
October 31, 1998 (unaudited)
<TABLE>
<CAPTION>
Principal
Amount Value
U.S. Treasury Obligations--18.3%
<S> <C> <C>
U.S. Treasury Note--18.3%
$20,000,000 5.000%, 1/31/1999 $19,976,999
-----------
(a) Repurchase Agreements--65.9%
24,032,000 Donaldson, Lufkin and Jenrette Securities Corp., 5.400%, dated 10/30/1998, due 11/2/1998 24,032,000
24,031,000 PaineWebber Group, Inc., 5.300%, dated 10/30/1998, due 11/2/1998 24,031,000
24,032,000 Prudential Securities, Inc., 5.350%, dated 10/30/1998, due 11/2/1998 24,032,000
-----------
Total Repurchase Agreements 72,095,000
-----------
Total Investments (at amortized cost)(b) $92,071,999
-----------
</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
($109,388,621) at October 31, 1998.
(See Notes which are an integral part of the Financial Statements)
STATEMENT OF ASSETS AND LIABILITIES
Riggs U.S. Treasury Money Market Fund
October 31, 1998 (unaudited)
<TABLE>
<CAPTION>
Assets:
<S> <C> <C>
Investments in repurchase agreements $72,095,000
Investments in securities 19,976,999
-----------
Total investments in securities, at amortized cost and value $ 92,071,999
Cash 17,443,368
Income receivable 274,146
------------
Total assets 109,789,513
Liabilities:
Income distribution payable 398,158
Accrued expenses 2,734
-----------
Total liabilities 400,892
------------
Net Assets for 109,388,621 shares outstanding $109,388,621
------------
Net Asset Value, Offering Price and Redemption Proceeds Per Share:
Class Y Shares:
$106,351,211 O 106,351,211 shares outstanding $ 1.00
------------
Class R Shares:
$3,037,410 O 3,037,410 shares outstanding $ 1.00
------------
</TABLE>
(See Notes which are an integral part of the Financial Statements)
STATEMENT OF OPERATIONS
Riggs U.S. Treasury Money Market Fund
Six Months Ended October 31, 1998 (unaudited)
<TABLE>
<CAPTION>
Investment Income:
<S> <C> <C> <C>
Interest $3,174,030
Expenses:
Investment advisory fee $292,151
Administrative personnel and services fee 81,694
Custodian fees 11,686
Transfer and dividend disbursing agent fees and expenses 7,192
Trustees' fees 740
Auditing fees 7,436
Legal fees 1,196
Portfolio accounting fees 956
Distribution services fee--Class R Shares 2,768
Shareholder services fee--Class R Shares 1,384
Share registration costs 11,544
Printing and postage 3,492
Insurance premiums 1,648
Miscellaneous 2,140
--------
Total expenses 426,027
Waivers--
Waiver of distribution services fee--Class R Shares $(1,384)
Waiver of shareholder services fee--Class R Shares (1,384)
-------
Total waivers (2,768)
--------
Net expenses 423,259
----------
Net investment income $2,750,771
----------
</TABLE>
(See Notes which are an integral part of the Financial Statements)
STATEMENT OF CHANGES IN NET ASSETS
Riggs U.S. Treasury Money Market Fund
<TABLE>
<CAPTION>
Six Months
Ended
(unaudited) Year Ended
October 31, 1998 April 30, 1998
<S> <C> <C>
Increase (Decrease) in Net Assets:
Operations--
Net investment income $ 2,750,771 $ 6,876,836
------------- -------------
Distributions to Shareholders--
Distributions from net investment income
Class Y Shares (2,726,134) (6,876,836)
Class R Shares (24,637) --
------------- -------------
Change in net assets resulting from distributions to shareholders (2,750,771) (6,876,836)
------------- -------------
Share Transactions--
Proceeds from sale of shares 128,391,230 277,959,898
Net asset value of shares issued to shareholders in payment of distributions 629,544 1,500,215
declared
Cost of shares redeemed (137,056,646) (303,046,901)
------------- -------------
Change in net assets resulting from share transactions (8,035,872) (23,586,788)
------------- -------------
Change in net assets (8,035,872) (23,586,788)
Net Assets:
Beginning of period 117,424,493 141,011,281
------------- -------------
End of period $ 109,388,621 $ 117,424,493
------------- -------------
</TABLE>
(See Notes which are an integral part of the Financial Statements)
FINANCIAL HIGHLIGHTS
Riggs U.S. Treasury Money Market Fund
Class Y Shares
(For a share outstanding throughout each period)
<TABLE>
<CAPTION>
Six Months Ended
(unaudited)
October 31, Year Ended April 30,
1998 1998 1997 1996 1995 1994
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
Income from investment operations
Net investment income 0.02 0.05 0.05 0.05 0.04 0.03
-------- -------- -------- -------- ------- --------
Less distributions
Distributions from net investment income (0.02) (0.05) (0.05) (0.05) (0.04) (0.03)
-------- -------- -------- -------- ------- --------
Net asset value, end of period $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
-------- -------- -------- -------- ------- --------
Total return (a) 2.40% 5.00% 4.83% 5.28% 4.39% 2.64%
Ratios to average net assets
Expenses 0.72%* 0.63% 0.57% 0.60% 0.60% 0.56%
Net investment income 4.71%* 4.88% 4.74% 5.17% 4.33% 2.61%
Expense reimbursement/waiver (b) -- 0.08% 0.13% 0.18% 0.20% 0.16%
Supplemental data
Net assets, end of period (000 omitted) $106,351 $117,424 $141,011 $107,104 $81,089 $106,948
</TABLE>
* Computed on an annualized basis.
(a) Based on net asset value, which does not reflect the sales charge or
contingent deferred sales charge, if applicable.
(b) This voluntary expense decrease is reflected in both the expense and net
investment income ratios shown above.
(See Notes which are an integral part of the Financial Statements)
FINANCIAL HIGHLIGHTS
Riggs U.S. Treasury Money Market Fund
Class R Shares
(For a share outstanding throughout the period)
<TABLE>
<CAPTION>
Period Ended
(unaudited)
October 31,
1998(c)
<S> <C>
Net asset value, beginning of period $ 1.00
Income from investment operations
Net investment income 0.01
-------
Less distributions
Distributions from net investment income (0.01)
-------
Net asset value, end of period $ 1.00
-------
Total return (a) 1.42%
Ratios to average net assets
Expenses 1.00%*
Net investment income 4.48%*
Expense waiver/reimbursement (b) 0.50%*
Supplemental data
Net assets, end of period (000 omitted) $ 3,037
</TABLE>
* Computed on an annualized basis.
(a) Based on net asset value, which does not reflect the sales charge or
contingent deferred sales charge, if applicable.
(b) This voluntary expense decrease is reflected in both the expense and net
investment income ratios shown above.
(c) Class R commenced operations on July 1, 1998.
(See Notes which are an integral part of the Financial Statements)
PORTFOLIO OF INVESTMENTS
Riggs Prime Money Market Fund
October 31, 1998 (unaudited)
<TABLE>
<CAPTION>
Principal Amount Value
Commercial Paper--18.3%
<S> <C> <C>
Finance--11.3%
$10,000,000 American General Finance Corp., 5.080%, 11/12/1998 $ 9,984,478
10,000,000 IBM Credit Corp., (International Business Machines Corp. Support Agreement), 5.030%, 11/2/1998 9,998,603
12,000,000 Prudential Funding Corp., 5.480%, 11/18/1998 11,968,947
------------
Total 31,952,028
------------
Finance - Automotive--7.0%
10,000,000 Chrysler Financial Corp., 5.080%, 11/9/1998 9,988,778
10,000,000 Ford Motor Credit Corp., 5.080%, 11/5/1998 9,994,356
------------
Total 19,983,134
------------
Total Commercial Paper 51,935,162
------------
Corporate Bonds--18.4%
Banking--1.3%
3,725,000 First USA Bank, 5.750%, 1/15/1999 3,723,801
------------
Consumer Non-Durables--0.4%
1,000,000 PepsiCo, Inc., 7.625%, 11/1/1998 1,000,000
------------
Finance--11.2%
10,000,000 BankAmerica Corp., 8.500%, 3/1/1999 10,091,074
2,601,000 Chase Manhattan Corp., 10.000%, 6/15/1999 2,665,979
900,000 Citicorp, 9.000%, 4/15/1999 912,972
2,305,000 Discover Credit Corp., 8.350%, 4/27/1999 2,333,274
5,250,000 Norwest Corp., 5.750%, 11/16/1998 5,249,922
975,000 Salomon, Inc., 5.500%, 1/15/1999 974,452
6,000,000 Salomon, Inc., 7.000%, 5/15/1999 6,037,104
3,700,000 Sears Roebuck Acceptance Corp., 5.600%, 11/16/1998 3,699,895
------------
Total 31,964,672
------------
Finance - Automotive--3.9%
1,500,000 Ford Motor Credit Corp., 5.625%, 1/15/1999 1,499,364
750,000 Ford Motor Credit Corp., 8.000%, 1/15/1999 753,520
480,000 General Motors Acceptance Corp., 7.750%, 1/15/1999 482,051
8,291,000 General Motors Acceptance Corp., 8.625%, 6/15/1999 8,434,000
------------
Total 11,168,935
------------
Finance - Equipment--0.4%
1,015,000 General Electric Capital Corp., 6.125%, 3/4/1999 1,015,956
------------
Retail Trade--1.2%
3,305,000 Sears, Roebuck & Co., 8.450%, 11/1/1998 3,305,000
------------
Total Corporate Bonds 52,178,364
------------
Corporate Notes--14.3%
Finance--7.9%
10,000,000 American Express Co., 5.070%, 11/15/1998 9,994,367
1,000,000 Associates Corp. of North America, 5.290%, 11/2/1998 999,988
1,000,000 Beneficial Corp., 9.200%, 8/25/1999 1,027,611
1,750,000 CIT Group Holdings, Inc., 5.700%, 12/15/1998 1,750,013
6,175,000 CIT Group Holdings, Inc., 5.875%, 11/9/1998 6,174,893
<CAPTION>
Principal Amount Value
Corporate Notes--continued
<S> <C> <C>
Finance--continued
$1,500,000 Deutsche Bank Financial, Inc., 6.375%, 12/23/1998 $ 1,501,025
1,000,000 Norwest Financial, Inc., 6.250%, 3/15/1999 1,001,963
------------
Total 22,449,860
------------
Finance - Automotive--1.1%
2,000,000 Chrysler Financial Corp., 6.240%, 11/2/1998 2,000,033
1,000,000 General Motors Acceptance Corp., 6.500%, 4/16/1999 1,003,023
------------
Total 3,003,056
------------
Finance - Equipment--5.3%
1,220,000 General Electric Capital Corp., 5.500%, 12/11/1998 1,219,435
500,000 International Lease Finance Corp., 5.750%, 1/15/1999 499,810
8,300,000 International Lease Finance Corp., 8.000%, 2/16/1999 8,355,758
5,000,000 International Lease Finance Corp., 9.880%, 12/15/1998 5,025,202
------------
Total 15,100,205
------------
Total Corporate Notes 40,553,121
------------
(a) Government Agencies--14.3%
Federal Farm Credit Bank--0.2%
500,000 5.430%, 11/16/1998 498,869
------------
Federal Home Loan Bank--7.0%
20,000,000 4.605%, 4/1/1999 19,994,622
------------
Federal National Mortgage Association--0.4%
1,250,000 4.350%, 5/25/1999 1,249,334
------------
Student Loan Marketing Association--6.7%
5,500,000 4.360%, 11/10/1998 5,499,766
100,000 4.370%, 2/22/1999 99,951
400,000 4.380%, 2/8/1999 399,924
13,000,000 4.390%, 8/2/1999 12,990,287
100,000 4.430%, 3/7/2001 99,668
------------
Total 19,089,596
------------
Total Government Agencies 40,832,421
------------
Loan Participation--4.2%
Finance - Equipment--4.2%
12,000,000 General Electric Capital Corp., 5.500%, 11/20/1998 11,965,167
------------
(a) Notes - Variable--19.9%
Banking--5.1%
1,520,000 BT Securities Corp., 5.937%, 3/15/1999 1,521,378
13,000,000 U.S. Bank, NA, Minneapolis, 5.093%, 11/16/1998 12,999,637
------------
Total 14,521,015
------------
Finance--11.3%
5,000,000 Allstate Corp., GIC, 5.635%, 6/30/1999 5,000,000
15,000,000 Bankers Trust Co., New York, 5.335%, 11/2/1998 14,999,003
2,000,000 Bear Stearns Cos., Inc., (Series B), 5.405%, 11/6/1998 2,000,016
10,000,000 Morgan Stanley, Dean Witter & Co., 5.662%, 12/13/1998 10,000,000
------------
Total 31,999,019
------------
<CAPTION>
Principal Amount Value
(a) Notes - Variable--continued
<S> <C> <C>
Finance - Insurance--3.5%
$10,000,000 Allstate Life Insurance Co., GIC, 5.715%, 12/2/1998 $ 10,000,000
------------
Total Notes - Variable 56,520,034
------------
(b) Repurchase Agreements--10.1%
9,576,000 Donaldson, Lufkin and Jenrette Securities Corp., 5.400%, dated 10/30/1998, due 11/2/1998 9,576,000
9,575,000 PaineWebber Group, Inc., 5.300%, dated 10/30/1998, due 11/2/1998 9,575,000
9,576,000 Prudential Securities, Inc., 5.350%, dated 10/30/1998, due 11/2/1998 9,576,000
------------
Total Repurchase Agreements 28,727,000
------------
Total Investments (at amortized cost)(c) $282,711,269
------------
</TABLE>
(a) Current rate and next reset date shown.
(b) The repurchase agreements are fully collateralized by U.S. Treasury
obligations based on market prices at the date of the portfolio.
(c) Also represents cost for federal tax purposes.
Note: The categories of investments are shown as a percentage of net assets
($284,194,857) at October 31, 1998.
The following acronym is used throughout this portfolio:
GIC--Guaranteed Investment Contract
(See Notes which are an integral part of the Financial Statements)
STATEMENT OF ASSETS AND LIABILITIES
Riggs Prime Money Market Fund
October 31, 1998 (unaudited)
<TABLE>
<CAPTION>
Assets:
<S> <C> <C>
Investments in securities, at amortized cost and value $253,984,269
Repurchase agreements, at amortized cost and value 28,727,000
------------
Total investments in securities, at amortized cost and value 282,711,269
Cash 45,228
Income receivable 2,648,126
Receivable for shares sold 22,523
------------
Total assets 285,427,146
Liabilities:
Income distribution payable $1,209,994
Accrued expenses 22,295
----------
Total liabilities 1,232,289
------------
Net Assets for 284,498,871 shares outstanding $284,194,857
------------
Net Assets Consist of:
Paid in capital $284,502,275
Undistributed net investment income 578,296
Accumulated net realized loss on investments (885,714)
------------
Total Net Assets $284,194,857
------------
Net Asset Value, Offering Price and Redemption Proceeds Per Share:
Class Y Shares:
$281,201,568 / 281,505,592 shares outstanding $1.00
------------
Class R Shares:
$2,993,289 / 2,993,279 shares outstanding $1.00
------------
</TABLE>
(See Notes which are an integral part of the Financial Statements)
STATEMENT OF OPERATIONS
Riggs Prime Money Market Fund
Six Months Ended October 31, 1998 (unaudited)
<TABLE>
<CAPTION>
Investment Income:
<S> <C> <C> <C>
Interest $8,996,571
Expenses:
Investment advisory fee $ 807,407
Administrative personnel and services fee 225,396
Custodian fees 32,296
Transfer and dividend disbursing agent fees and expenses 18,216
Trustees' fees 2,116
Auditing fees 7,452
Legal fees 1,656
Distribution services fee--Class R Shares 4,784
Shareholder services fee--Class R Shares 2,024
Share registration costs 10,396
Printing and postage 3,496
Insurance premiums 1,580
Miscellaneous 2,851
----------
Total expenses 1,119,670
Waivers and reimbursements--
Waiver of distribution services fee--Class R Shares $(2,623)
Waiver of shareholder services fee--Class R Shares (2,024)
-------
Total waivers (4,647)
----------
Net expenses 1,115,023
----------
Net investment income $7,881,548
----------
</TABLE>
(See Notes which are an integral part of the Financial Statements)
STATEMENT OF CHANGES IN NET ASSETS
Riggs Prime Money Market Fund
<TABLE>
<CAPTION>
Six Months Ended Year Ended
(unaudited)
October 31, 1998 April 30, 1998
<S> <C> <C>
Increase (Decrease) in Net Assets:
Operations--
Net investment income $ 7,881,548 $ 18,383,309
Net realized loss on investments ($0 and $4,102, respectively, as computed for -- (15,106)
federal tax purposes)
------------- ---------------
Change in net assets resulting from operations 7,881,548 18,368,203
------------- ---------------
Distributions to Shareholders--
Distributions from net investment income
Class Y Shares (7,837,157) (18,106,563)
Class R Shares (44,391) (276,746)
------------- ---------------
Change in net assets resulting from distributions to shareholders (7,881,548) (18,383,309)
------------- ---------------
Share Transactions--
Proceeds from sale of shares 627,694,193 1,668,483,944
Net asset value of shares issued to shareholders in payment of distributions declared 1,887,523 6,222,769
Cost of shares redeemed (664,016,919) (1,754,361,234)
------------- ---------------
Change in net assets resulting from share transactions (34,435,203) (79,654,521)
------------- ---------------
Change in net assets (34,435,203) (79,669,627)
Net Assets:
Beginning of period 318,630,060 398,299,687
------------- ---------------
End of period (including undistributed net investment income of $578,296 and $ 284,194,857 $ 318,630,060
$578,296, respectively)
------------- ---------------
</TABLE>
(See Notes which are an integral part of the Financial Statements)
FINANCIAL HIGHLIGHTS
Riggs Prime Money Market Fund
Class Y Shares
(For a share outstanding throughout each period)
<TABLE>
<CAPTION>
Six Months
Ended
(unaudited)
October 31, Year Ended April 30,
1998 1998 1997 1996 1995 1994
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
Income from investment operations
Net investment income 0.02 0.05 0.05 0.05 0.047 0.03
Net realized loss on investments -- -- -- -- (0.003) --
-------- -------- -------- -------- -------- --------
Total from investment operations 0.00 0.05 0.05 0.05 0.044 0.03
-------- -------- -------- -------- -------- --------
Less distributions
Distributions from net investment income (0.02) (0.05) (0.05) (0.05) (0.047) (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 (a) 2.46% 5.22% 5.09% 5.50% 4.84%(b) 3.08%
Ratios to average net assets
Expenses 0.69%* 0.58% 0.51% 0.51% 0.44% 0.43%
Net investment income 4.88%* 5.11% 5.00% 5.26% 4.72% 3.02%
Expense reimbursement/waiver (c) -- 0.11% 0.17% 0.19% 0.24% 0.28%
Supplemental data
Net assets, end of period (000 omitted) $281,202 $318,122 $372,037 $367,742 $284,059 $334,765
</TABLE>
* Computed on an annualized basis.
(a) Based on net asset value, which does not reflect the sales charge or
contingent deferred sales charge, if applicable.
(b) Total return would have remained at 4.84% absent the capital contribution by
Riggs National Corp.
(c) This voluntary expense decrease is reflected in both the expense and net
investment income ratios shown above.
(See Notes which are an integral part of the Financial Statements)
FINANCIAL HIGHLIGHTS
Riggs Prime Money Market Fund
Class R Shares
(For a share outstanding throughout each period)
<TABLE>
<CAPTION>
Six Months
Ended
(unaudited)
October 31, Year Ended April 30,
1998 1998 1997 1996(a)
<S> <C> <C> <C> <C>
Net asset value, beginning of period $ 1.00 $ 1.00 $ 1.00 $ 1.00
Income from investment operations
Net investment income 0.02 0.05 0.05 0.02
------- ------ ------- -------
Less distributions
Distributions from net investment income (0.02) (0.05) (0.05) (0.02)
------- ------ ------- -------
Net asset value, end of period $ 1.00 $ 1.00 $ 1.00 $ 1.00
------- ------ ------- -------
Total return (b) 2.38% 4.92% 4.57% 0.74%
Ratios to average net assets
Expenses 0.92%* 1.00% 1.01% 1.07%*
Net investment income 4.64%* 4.51% 4.58% 4.58%*
Expense waiver/reimbursement (c) 0.49%* 0.18% 0.17% 0.19%*
Supplemental data
Net assets, end of period (000 omitted) $ 2,993 $ 508 $26,263 $ 10
</TABLE>
* Computed on an annualized basis.
(a) Reflects operations for the period from December 12, 1995 (date of initial
public investment) to April 30,1996.
(b) Based on net asset value, which does not reflect the sales charge or
contingent deferred sales charge, if applicable.
(c) This voluntary expense decrease is reflected in both the expense and net
investment income ratios shown above.
(See Notes which are an integral part of the Financial Statements)
PORTFOLIO OF INVESTMENTS
Riggs U.S. Government Securities Fund
October 31, 1998 (unaudited)
<TABLE>
<CAPTION>
Principal
Amount Value
Corporate Bonds--2.7%
<S> <C> <C>
Finance--2.7%
$1,000,000 EQCC Home Equity Loan Trust 1997-3, Class A8, 6.41%, 12/15/2004 $ 1,020,430
-----------
Total Corporate Bonds (identified cost $999,844) 1,020,430
-----------
Government Agencies--73.2%
Federal Home Loan Mortgage Corporation--28.3%
9,700,000 5.75%, 7/15/2003 10,075,099
620,000 6.79%, 5/24/2001 627,477
-----------
Total 10,702,576
-----------
Federal National Mortgage Association--22.2%
4,500,000 5.625%, 3/15/2001 4,611,825
888,000 6.00%, 5/15/2008 941,280
962,452 7.50%, 6/1/2012 988,323
1,000,000 8.50%, 2/1/2005 1,043,020
534,291 9.50%, 6/25/2018 573,321
211,060 9.50%, 7/25/2019 232,871
-----------
Total 8,390,640
-----------
Government National Mortgage Association--22.7%
1,227,850 6.50%, 5/15/2028 1,241,663
2,375,335 7.00%, 8/15/2027 2,431,013
2,602,846 7.50%, 10/15/2027 2,682,545
2,127,100 8.00%, 10/15/2027 2,204,207
-----------
Total 8,559,428
-----------
Total Government Agencies (identified cost $27,578,317) 27,652,644
-----------
U.S. Treasury Obligations--21.7%
U.S. Treasury Bonds --21.7%
4,251,000 6.25%, 8/15/2023 4,754,871
2,950,000 6.50%, 11/15/2026 3,431,116
-----------
Total 8,185,987
-----------
U.S. Treasury Note --0.0%
1,000 6.50%, 5/15/2005 1,113
-----------
Total U.S. Treasury Obligations (identified cost $7,387,951) 8,187,100
-----------
(a) Repurchase Agreements--1.5%
564,000 Donaldson, Lufkin and Jenrette Securities Corp., 5.40%, dated 10/30/1998, 564,000
due 11/2/1998 (at amortized cost)
-----------
Total Investments (identified cost $36,530,112)(b) $37,424,174
-----------
</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 $36,530,112. The
net unrealized appreciation/depreciation of investments on a federal tax
basis amounts to $894,062 which is comprised of $983,393 appreciation and
$89,331 depreciation at October 31, 1998.
Note: The categories of investments are shown as a percentage of net assets
($37,745,543) at October 31, 1998.
(See Notes which are an integral part of the Financial Statements)
STATEMENT OF ASSETS AND LIABILITIES
Riggs U.S. Government Securities Fund
October 31, 1998 (unaudited)
<TABLE>
<CAPTION>
Assets:
<S> <C> <C>
Total investments in securities, at value (identified and tax cost $36,530,112) $37,424,174
Cash 977
Income receivable 496,970
-----------
Total assets 37,922,121
Liabilities:
Income distribution payable $169,454
Accrued expenses 7,124
--------
Total liabilities 176,578
-----------
Net Assets for 3,721,126 shares outstanding $37,745,543
-----------
Net Assets Consist of:
Paid in capital $38,902,395
Net unrealized appreciation of investments 894,062
Accumulated net realized loss on investments (2,039,521)
Distributions in excess of net investment income (11,393)
-----------
Total Net Assets $37,745,543
-----------
Net Asset Value, Offering Price and Redemption Proceeds Per Share:
$37,745,543 / 3,721,126 shares outstanding $10.14
-----------
</TABLE>
(See Notes which are an integral part of the Financial Statements)
STATEMENT OF OPERATIONS
Riggs U.S. Government Securities Fund
Six Months Ended October 31, 1998 (unaudited)
<TABLE>
<CAPTION>
Investment Income:
<S> <C> <C> <C>
Interest $1,081,683
Expenses:
Investment advisory fee $136,302
Administrative personnel and services fee 25,437
Custodian fees 3,635
Transfer and dividend disbursing agent fees and expenses 9,016
Trustees' fees 644
Auditing fees 7,820
Legal fees 1,748
Portfolio accounting fees 2,484
Distribution services fee 8,138
Shareholder services fee 8,138
Share registration costs 8,004
Printing and postage 2,576
Insurance premiums 1,196
Miscellaneous 1,932
--------
Total expenses 217,070
Waivers --
Waiver of investment advisory fee $(72,695)
Waiver of shareholder services fee (4,883)
--------
Total waivers (77,578)
--------
Net expenses 139,492
----------
Net investment income 942,191
----------
Realized and Unrealized Gain (Loss) on Investments:
Net realized gain on investments 674,098
Net change in unrealized appreciation of investments 685,336
----------
Net realized and unrealized gain on investments 1,359,434
----------
Change in net assets resulting from operations $2,301,625
----------
</TABLE>
(See Notes which are an integral part of the Financial Statements)
STATEMENT OF CHANGES IN NET ASSETS
Riggs U.S. Government Securities Fund
<TABLE>
<CAPTION>
Six Months
Ended
(unaudited) Year Ended
October 31, 1998 April 30, 1998
<S> <C> <C>
Increase (Decrease) in Net Assets:
Operations--
Net investment income $ 942,191 $ 1,932,020
Net realized gain on investments ($674,098 and $843,130,
respectively,
as computed for federal tax purposes) 674,098 933,219
Net change in unrealized appreciation 685,336 349,287
----------- ------------
Change in net assets resulting from operations 2,301,625 3,214,526
----------- ------------
Distributions to Shareholders--
Distributions from net investment income (953,584) (1,973,265)
----------- ------------
Share Transactions--
Proceeds from sale of shares 5,221,533 12,504,323
Net asset value of shares issued to shareholders in payment of 156,955 348,824
distributions declared
Cost of shares redeemed (3,533,682) (11,370,863)
----------- ------------
Change in net assets resulting from share transactions 1,844,806 1,482,284
----------- ------------
Change in net assets 3,192,847 2,723,545
Net Assets:
Beginning of period 34,552,696 31,829,151
----------- ------------
End of period $37,745,543 $ 34,552,696
----------- ------------
</TABLE>
(See Notes which are an integral part of the Financial Statements)
FINANCIAL HIGHLIGHTS
Riggs U.S. Government Securities Fund
Class R Shares
(For a share outstanding throughout each period)
<TABLE>
<CAPTION>
Six Months
Ended
(unaudited)
October 31, Year Ended April 30,
1998 1998 1997 1996 1995 1994
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period $ 9.77 $ 9.41 $ 9.47 $ 9.35 $ 9.46 $ 10.40
Income from investment operations
Net investment income 0.27 0.56 0.60 0.59 0.56 0.53
Net realized and unrealized gain (loss) on investments 0.37 0.37 (0.07) 0.12 (0.11) (0.38)
------- ------- ------- ------- ------- ------
Total from investment operations 0.64 0.93 0.53 0.71 0.45 0.15
------- ------- ------- ------- ------- ------
Less distributions
Distributions from net investment income (0.27) (0.57) (0.59) (0.59) (0.56) (0.53)
Distributions from net realized gain -- -- -- -- -- (0.56)
------- ------- ------- ------- ------- ------
Total distributions (0.27) (0.57) (0.59) (0.59) (0.56) (1.09)
------- ------- ------- ------- ------- ------
Net asset value, end of period $ 10.14 $ 9.77 $ 9.41 $ 9.47 $ 9.35 $ 9.46
------- ------- ------- ------- ------- ------
Total return (a) 6.24% 10.14% 5.79% 7.60% 5.01% 1.10%
Ratios to average net assets
Expenses 1.05%* 0.82% 0.87% 0.80% 0.80% 0.68%
Net investment income 5.18%* 5.87% 6.36% 6.04% 6.06% 5.15%
Expense reimbursement/waiver (b) 0.55%* 0.40% 0.40% 0.40% 0.40% 0.48%
Supplemental data
Net assets, end of period (000 omitted) $37,745 $34,521 $31,829 $50,919 $46,820 $47,552
Portfolio turnover 53% 175% 171% 128% 262% 344%
- ---------------------------------------------------------------------------------------------------------------------------------
</TABLE>
* Computed on an annualized basis.
(a) Based on net asset value, which does not reflect the sales charge or
contingent deferred sales charge, if applicable.
(b) This voluntary expense decrease is reflected in both the expense and net
investment income ratios shown above.
(See Notes which are an integral part of the Financial Statements)
PORTFOLIO OF INVESTMENTS
Riggs Stock Fund
October 31, 1998 (unaudited)
<TABLE>
<CAPTION>
Shares Value
Common Stocks--96.9%
<C> <S> <C>
Commercial Services--1.5%
81,911 Modis Professional Services, Inc. $ 1,443,681
Consumer Non-Durables--8.5%
56,875 Fort James Corp. 2,292,773
55,800 Philip Morris Cos., Inc. 2,852,775
30,270 Quaker Oats Co. 1,787,822
35,655 R.J.R. Nabisco, Inc., Class A 1,345,976
-----------
Total 8,279,346
-----------
Consumer Services--3.4%
109,050 (a) Cendant Corp. 1,247,259
34,855 Tribune Co. 2,008,519
-----------
Total 3,255,778
-----------
Electronic Technology--15.8%
21,570 (a) Cisco Systems, Inc. 1,358,910
81,465 Compaq Computer Corp. 2,576,331
25,255 (a) EMC Corp. Mass 1,625,791
26,445 Intel Corp. 2,358,563
20,575 International Business Machines Corp. 3,054,101
35,955 Northern Telecom Ltd. 1,539,323
27,380 Sundstrand Corp. 1,285,149
15,880 United Technologies Corp. 1,512,570
-----------
Total 15,310,738
-----------
Energy Minerals--7.1%
20,025 British Petroleum Co. PLC, ADR 1,770,961
28,050 Mobil Corp. 2,123,034
32,590 Texaco, Inc. 1,932,994
31,250 USX Corp. 1,021,484
-----------
Total 6,848,473
-----------
Finance--15.3%
24,210 American Express Co. 2,139,559
21,335 Bank One Corp. 1,042,748
16,747 BankAmerica Corp. 961,906
36,335 BankBoston Corp. 1,337,582
45,995 First Union Corp. 2,667,710
21,320 Hartford Financial Services Group, Inc. 1,132,625
47,435 Provident Cos., Inc. 1,378,580
46,285 SLM Holding Corp. 1,854,293
62,613 Washington Mutual, Inc. 2,344,074
-----------
Total 14,859,077
-----------
Health Services--2.9%
59,190 Columbia/HCA Healthcare Corp. 1,242,990
81,730 (a) Humana, Inc. 1,547,762
-----------
Total 2,790,752
-----------
Health Technology--5.2%
23,365 Johnson & Johnson $ 1,904,248
23,241 Merck & Co., Inc. 3,143,345
-----------
Total 5,047,593
-----------
Industrial Services--4.3%
33,063 AES Corp. 1,353,516
19,485 Schlumberger Ltd. 1,022,963
40,900 Waste Management, Inc. 1,845,613
-----------
Total 4,222,092
-----------
Non-Energy Minerals--1.0%
42,315 USX-U.S. Steel Group, Inc. 983,824
Producer Manufacturing--6.7%
32,460 Ingersoll-Rand Co. 1,639,230
29,520 Philips Electronics N.V., ADR 1,619,910
22,780 Textron, Inc. 1,694,263
15,615 Xerox Corp. 1,512,703
-----------
Total 6,466,106
-----------
Retail Trade--11.3%
43,165 American Stores Co. 1,405,560
26,080 CVS Corp. 1,191,530
87,960 (a) Office Depot, Inc. 2,199,000
65,200 (a) Safeway, Inc. 3,117,375
29,115 Sears, Roebuck & Co. 1,308,355
89,255 TJX Cos., Inc. 1,690,267
-----------
Total 10,912,087
-----------
Transportation--1.7%
25,730 (a) UAL Corp. 1,670,842
Utilities--12.2%
29,515 AT&T Corp. 1,837,309
22,940 Ameritech Corp. 1,237,326
41,490 Coastal Corp. 1,462,523
17,605 Columbia Energy Group 1,018,889
38,400 Edison International 1,012,800
8,515 FPL Group, Inc. 532,720
37,775 GPU, Inc. 1,629,047
19,405 GTE Corp. 1,138,831
35,875 MCI Worldcom, Inc. 1,982,094
-----------
Total 11,851,539
-----------
Total Common Stocks (identified cost $77,897,340) 93,941,928
-----------
Principal
Amount Value
(b) Repurchase Agreements--3.0%
$2,900,000 Donaldson, Lufkin and Jenrette Securities Corp., 5.40%, dated 10/30/1998, $ 2,900,000
due 11/2/1998
Total Investments (identified cost $80,797,340)(c) $96,841,928
- -----------------------------------------------------------------------------------------------------------------
</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 $80,797,340. The
net unrealized appreciation/depreciation of investments on a federal tax
basis amounts to $16,044,588 which is comprised of $20,837,597 appreciation
and $4,793,009 depreciation at October 31, 1998.
Note: The categories of investments are shown as a percentage of net assets
($96,906,244) at October 31, 1998.
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)
STATEMENT OF ASSETS AND LIABILITIES
Riggs Stock Fund
October 31, 1998 (unaudited)
<TABLE>
<CAPTION>
Assets:
<S> <C> <C>
Total investments in securities, at value (identified and tax cost $96,841,928
$80,797,340)
Cash 3,573
Income receivable 91,237
-----------
Total assets 96,936,738
Liabilities:
Income distribution payable $ 109
Accrued expenses 30,385
-------
Total liabilities 30,494
-----------
Net Assets for 6,510,377 shares outstanding $96,906,244
-----------
Net Assets Consist of:
Paid in capital $70,777,432
Net unrealized appreciation of investments 16,044,588
Accumulated net realized gain on investments 10,084,361
Distributions in excess of net investment income (137)
-----------
Total Net Assets $96,906,244
-----------
Net Asset Value and Offering Price Per Share:
Class R Shares:
Net Asset Value Per Share ($96,807,362 O 6,503,728 shares outstanding) $ 14.89
-----------
Redemption Proceeds Per Share (98/100 of $14.89)* $ 14.59
-----------
Class B Shares:
Net Asset Value Per Share ($98,882 O 6,649 shares outstanding) $ 14.87
-----------
Redemption Proceeds Per Share (95/100 of $14.87)* $ 14.13
- -------------------------------------------------------------------------------------------------------------------------
</TABLE>
* See "Contingent Deferred Sales Charge" in the Prospectus.
(See Notes which are an integral part of the Financial Statements)
STATEMENT OF OPERATIONS
Riggs Stock Fund
Six Months Ended October 31, 1998 (unaudited)
<TABLE>
<CAPTION>
Investment Income:
<S> <C> <C> <C>
Dividends (net of foreign taxes withheld of $457) $ 683,326
Interest 81,190
------------
Total income 764,516
Expenses:
Investment advisory fee $389,017
Administrative personnel and services fee 72,744
Custodian fees 10,374
Transfer and dividend disbursing agent fees and expenses 17,480
Trustees' fees 1,380
Auditing fees 7,728
Legal fees 1,656
Portfolio accounting fees 2,300
Distribution services fee--Class R Shares 19,273
Distribution services fee--Class B Shares 119
Shareholder services fee--Class R Shares 19,273
Shareholder services fee--Class B Shares 40
Share registration costs 15,272
Printing and postage 2,300
Insurance premiums 1,472
Miscellaneous 2,668
--------
Total expenses 563,096
Waivers --
Waiver of shareholder services fee--Class R Shares $(11,564)
Waiver of shareholder services fee--Class B Shares (40)
--------
Total waivers (11,604)
--------
Net expenses 551,492
------------
Net investment income 213,024
------------
Realized and Unrealized Gain (Loss) on Investments:
Net realized gain on investments 113,991
Net change in unrealized appreciation of investments (11,552,346)
------------
Net realized and unrealized loss on investments (11,438,355)
------------
Change in net assets resulting from operations $(11,225,331)
- -----------------------------------------------------------------------------------------------------
</TABLE>
(See Notes which are an integral part of the Financial Statements)
STATEMENT OF CHANGES IN NET ASSETS
Riggs Stock Fund
<TABLE>
<CAPTION>
Six Months Ended
(unaudited) Year Ended
October 31, 1998 April 30, 1998
<S> <C> <C>
Increase (Decrease) in Net Assets:
Operations--
Net investment income $ 213,024 $ 663,953
Net realized gain on investments ($113,991 and $23,589,130, respectively,
as computed for federal tax purposes) 113,991 23,430,065
Net change in unrealized appreciation/depreciation (11,552,346) 10,177,213
Change in net assets resulting from operations (11,225,331) 34,271,231
Distributions to Shareholders--
Distributions from net investment income
Class R Shares (292,776) (683,221)
Class B Shares (57) --
Distributions from net realized gains
Class R Shares -- (23,035,017)
Change in net assets resulting from distributions to shareholders (292,833) (23,718,238)
Share Transactions--
Proceeds from sale of shares 13,210,098 36,671,637
Net asset value of shares issued to shareholders in payment of distributions 110,780 7,420,981
declared
Cost of shares redeemed (22,011,804) (26,672,024)
Change in net assets resulting from share transactions (8,690,926) 17,420,594
Change in net assets (20,209,090) 27,973,587
Net Assets:
Beginning of period 117,115,334 89,141,747
End of period (including undistributed net investment income of $79,672 at April $ 96,906,244 $117,115,334
30, 1998)
- ----------------------------------------------------------------------------------------------------------------------
</TABLE>
(See Notes which are an integral part of the Financial Statements)
FINANCIAL HIGHLIGHTS
Riggs Stock Fund
Class R Shares
(For a share outstanding throughout each period)
<TABLE>
<CAPTION>
Six Months Ended
(unaudited)
October 31, Year Ended April 30,
1998 1998 1997 1996 1995 1994
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period $ 16.57 $ 15.41 $ 15.84 $ 12.69 $ 11.89 $ 10.46
Income from investment operations
Net investment income 0.03 0.11 0.20 0.18 0.20 0.16
Net realized and unrealized gain (loss)
on investments (1.67) 5.20 2.28 4.00 1.39 1.44
------- -------- ------- ------- ------- -------
Total from investment operations (1.64) 5.31 2.48 4.18 1.59 1.60
Less distributions
Distributions from net investment income (0.04) (0.11) (0.20) (0.18) (0.19) (0.16)
Distributions from net realized gain -- (4.04) (2.71) (0.85) (0.60) (0.01)
------- -------- ------- ------- ------- -------
Total distributions (0.04) (4.15) (2.91) (1.03) (0.79) (0.17)
------- -------- ------- ------- ------- -------
Net asset value, end of period $ 14.89 $ 16.57 $ 15.41 $ 15.84 $ 12.69 $ 11.89
------- -------- ------- ------- ------- -------
Total return (a) (9.88%) 39.68% 16.34% 33.73% 14.16% 15.28%
Ratios to average net assets
Expenses 1.35%* 0.93% 0.91% 0.96% 0.98% 1.00%
Net investment income 0.41%* 0.63% 1.26% 1.26% 1.66% 1.36%
Expense reimbursement/waiver (b) 0.15%* 0.07% 0.12% 0.12% 0.14% 0.20%
Supplemental data
Net assets, end of period (000 omitted) $96,807 $117,115 $89,142 $84,797 $66,019 $58,597
Portfolio turnover 22% 94% 75% 81% 46% 89%
- ----------------------------------------------------------------------------------------------------------------
</TABLE>
* Computed on an annualized basis.
(a) Based on net asset value, which does not reflect the sales charge or
contingent deferred sales charge, if applicable.
(b) This voluntary expense decrease is reflected in both the expense and net
investment income ratios shown above.
(See Notes which are an integral part of the Financial Statements)
FINANCIAL HIGHLIGHTS
Riggs Stock Fund
Class B Shares
(For a share outstanding throughout the period)
<TABLE>
<CAPTION>
Period Ended
(unaudited)
October 31, 1998(c)
<S> <C>
Net asset value, beginning of period $ 16.65
Income from investment operations
Net investment loss (0.01)
Net realized and unrealized (loss) on investments (1.76)
-------
Total from investment operations 14.88
Less distributions
Distributions from net investment income (0.01)
-------
Net asset value, end of period $ 14.87
-------
Total return (a) 10.63%
Ratios to average net assets
Expenses 1.83%*
Net investment loss (0.33%)
Expense waiver/reimbursement (b) 0.25%*
Supplemental data
Net assets, end of period (000 omitted) $ 99
Portfolio turnover 22%
- -------------------------------------------------------------------------------------------------
</TABLE>
* Computed on an annualized basis.
(a) Based on net asset value, which does not reflect the sales charge or
contingent deferred sales charge, if applicable.
(b) This voluntary expense decrease is reflected in both the expense and net
investment income ratios shown above.
(c) Class B commenced operations on July 1, 1998.
(See Notes which are an integral part of the Financial Statements)
PORTFOLIO OF INVESTMENTS
Riggs Small Company Stock Fund
October 31, 1998 (unaudited)
<TABLE>
<CAPTION>
Shares Value
Common Stocks--91.9%
<C> <S> <C>
Basic Materials--1.7%
34,435 (a) JLM Industries, Inc. $ 223,828
65,605 (a) Quaker Fabric Corp. 451,034
-----------
Total 674,862
-----------
Capital Goods--5.1%
39,620 (a) Group Maintenance America Corp. 512,584
20,325 Kuhlman Corp. 538,613
35,570 (a) Trident International, Inc. 284,560
19,805 (a) Zebra Technologies Corp., Class A 648,614
-----------
Total 1,984,371
-----------
Commercial Services--3.8%
22,097 Interim Services, Inc. 469,561
28,765 Richfood Holdings, Inc. 510,579
28,165 Saville Systems Ireland PLC, ADR 475,284
-----------
Total 1,455,424
-----------
Consumer Durables--2.5%
19,135 Action Performance Cos., Inc. 571,658
18,270 Furniture Brands International, Inc. 392,805
-----------
Total 964,463
-----------
Consumer Non-Durables--5.1%
40,455 Flowers Industries, Inc. 829,328
65,055 NBTY, Inc. 520,440
18,575 (a) Suiza Foods Corp. 606,009
-----------
Total 1,955,777
-----------
Consumer Services--10.0%
22,400 (a) Metamor Worldwide, Inc. 575,400
32,585 (a) Performance Food Group Co. 790,186
39,389 ResortQuest International, Inc. 347,115
25,376 (a) ScanSource, Inc. 491,660
37,059 (a) Travel Services International, Inc. 750,445
28,670 (a) VDI Media 243,695
17,060 (a) Valassis Communication, Inc. 680,267
-----------
Total 3,878,768
-----------
Electronic Technology--2.1%
31,035 (a) ATMI, Inc. 426,731
32,595 (a) Telco System, Inc. 391,140
-----------
Total 817,871
-----------
Energy--5.9%
51,035 (a) Miller Exploration Co. 280,693
47,705 (a) National-Oilwell, Inc. 757,317
92,250 (a) Newpark Resources, Inc. 870,609
58,355 (a) Patterson Energy Inc. 361,072
-----------
Total 2,269,691
-----------
Financial--16.8%
40,005 Allied Capital Corp. $ 750,094
95,675 (a) Amresco, Inc. 663,745
21,050 Apartment Investment & Management Co., Class A 735,434
32,030 ESG, ADR 592,555
19,020 (a) FPIC Insurance Group, Inc. 553,958
22,675 Hubco, Inc. 612,225
59,985 (a) Imperial Credit Commercial Mortgage Investment Corp. 502,374
51,251 Long Beach Financial Corp. 368,367
54,575 Peoples Bancorp, Inc. 552,572
47,055 Rainbow Rentals, Inc. 467,609
16,122 Weingarten Realty Investors 716,421
-----------
Total 6,515,354
-----------
Healthcare--13.2%
12,365 Advance Paradiam, Inc. 408,045
11,440 Bindley Western Industries, Inc. 414,700
66,025 Coventry Health Care, Inc. 639,617
47,430 (a) Dental Care Alliance, Inc. 474,300
6,780 Life Technologies, Inc. 251,496
25,625 (a) Maxxim Medical, Inc. 647,031
39,590 Physician Reliance Network, Inc. 440,439
17,910 (a) Steris Corp. 411,930
22,455 (a) Trigon Healthcare, Inc. 842,062
24,302 (a) United Payors & United Providers, Inc. 558,946
-----------
Total 5,088,566
-----------
Industrial Services--1.1%
56,415 Windmere-Durable Holdings 433,690
-----------
Non-Energy Minerals--1.5%
10,960 Southdown, Inc. 596,635
-----------
Process Industries--1.6%
50,585 Building One Services Corp. 625,989
-----------
Retail--7.9%
34,175 (a) Gadzooks, Inc. 279,808
59,213 (a) Goody's Family Clothing, Inc. 632,839
42,300 Just For Feet, Inc. 716,456
20,230 (a) Pacific Sunwear of California 437,474
67,295 (a) PetSmart, Inc. 483,683
48,575 (a) Syms Corp. 488,786
-----------
Total 3,039,046
-----------
Technology Services--6.5%
16,560 Axent Technologies, Inc. 416,070
29,855 (a) Inacom Corp. 578,441
29,910 Platinum Technology, Inc. 491,646
68,905 (a) Savior Technology Group, Inc. 633,064
46,693 (a) The A Consulting Team, Inc. 402,727
-----------
Total 2,521,948
-----------
Shares or
Principal
Amount Value
Common Stocks--continued
Transportation--5.7%
19,342 (a) Atlantic Coast Airlines, Inc. $ 464,208
14,105 Comair Holdings, Inc. 463,702
32,111 (a) Mesaba Holdings, Inc. 586,026
11,490 (a) Ryanair Holdings PLC, ADR 337,519
14,140 SkyWest, Inc. 360,570
-----------
Total 2,212,025
-----------
Utilities--1.4%
23,515 UGI Corp. 537,905
-----------
Total Common Stocks (identified cost $36,810,712) 35,572,385
-----------
(b) Repurchase Agreement--8.0%
$3,116,000 Donaldson, Lufkin and Jenrette Securities Corp., 5.40%, dated 10/30/1998, due 3,116,000
-----------
11/2/1998 (at amortized cost)
Total Investments (identified cost $39,926,712)(c) $38,688,385
- -------------------------------------------------------------------------------------------------------------------------
</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 $39,926,712. The
net unrealized appreciation/depreciation of investments on a federal tax
basis amounts to ($1,238,327) which is comprised of $3,763,977 appreciation
and $5,002,304 depreciation at October 31, 1998.
Note: The categories of investments are shown as a percentage of net assets
($38,702, 051) at October 31, 1998.
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)
STATEMENT OF ASSETS AND LIABILITIES
Riggs Small Company Stock Fund
October 31, 1998 (unaudited)
<TABLE>
<CAPTION>
Assets:
<S> <C> <C>
Total investments in securities, at value (identified and tax cost $38,688,385
$39,926,712)
Cash 13,467
Income receivable 2,863
Deferred organizational costs 9,204
Other assets 2,359
-----------
Total assets 38,716,278
Liabilities:
Payable for investments purchased $5,285
Accrued expenses 8,942
-------
Total liabilities 14,227
-----------
Net Assets for 2,981,858 shares outstanding $38,702,051
-----------
Net Assets Consist of:
Paid in capital $38,517,219
Net unrealized depreciation of investments (1,238,327)
Accumulated net realized gain on investments 1,441,356
Distributions in excess of net investment income (18,197)
-----------
Total Net Assets $38,702,051
-----------
Net Asset Value, Offering Price and Redemption Proceeds Per Share:
Class R Shares:
Net Asset Value Per Share ($38,575,126/2,972,068 shares outstanding) $ 12.98
-----------
Redemption Proceeds Per Share (98/100 of $12.98)* $ 12.72
-----------
Class B Shares:
Net Asset Value Per Share ($126,925/9,790 shares outstanding) $ 12.96
-----------
Redemption Proceeds Per Share (95/100 of $12.96)* $ 12.31
-----------
- ---------------------------------------------------------------------------------------------------------------------
</TABLE>
* See "Contingent Deferred Sales Charge" in the Prospectus.
(See Notes which are an integral part of the Financial Statements)
STATEMENT OF OPERATIONS
Riggs Small Company Stock Fund
Six Months Ended October 31, 1998 (unaudited)
<TABLE>
<CAPTION>
Investment Income:
<S> <C> <C> <C>
Dividends $ 184,598
Interest 71,869
------------
Total income 256,467
Expenses:
Investment advisory fee $179,314
Administrative personnel and services fee 31,499
Custodian fees 4,716
Transfer and dividend disbursing agent fees and expenses 10,580
Trustees' fees 1,104
Auditing fees 8,464
Legal fees 1,104
Portfolio accounting fees 1,564
Distribution services fee--Class R Shares 7,172
Distribution services fee--Class B Shares 164
Shareholder services fee--Class R Shares 7,172
Shareholder services fee--Class B Shares 55
Share registration costs 13,892
Printing and postage 4,048
Insurance premiums 1,288
Miscellaneous 6,886
--------
Total expenses 279,022
Waivers--
Waiver of shareholder services fee--Class R Shares $(4,303)
Waiver of shareholder services fee--Class B Shares (55)
--------
Total waivers (4,358)
--------
Net expenses 274,664
------------
Net operating loss (18,197)
------------
Realized and Unrealized Gain (Loss) on Investments:
Net realized loss on investments (3,825,392)
Net change in unrealized appreciation (depreciation) of investments (12,894,717)
------------
Net realized and unrealized loss on investments (16,720,109)
------------
Change in net assets resulting from operations $(16,738,306)
- --------------------------------------------------------------------------------------------------------------------------------
</TABLE>
(See Notes which are an integral part of the Financial Statements)
STATEMENT OF CHANGES IN NET ASSETS
Riggs Small Company Stock Fund
<TABLE>
<CAPTION>
Six Months Ended
(unaudited) Year Ended
October 31, 1998 April 30, 1998
<S> <C> <C>
Increase (Decrease) in Net Assets:
Operations--
Net operating loss $ (18,197) $ (108,923)
Net realized gain (loss) on investments (($3,825,392) and
$10,181,542, respectively,
as computed for federal tax purposes) (3,825,392) 10,175,481
Net change in unrealized appreciation/depreciation (12,894,717) 12,217,509
------------ ------------
Change in net assets resulting from operations (16,738,306) 22,284,067
------------ ------------
Distributions to Shareholders--
Distributions from net realized gains
Class R Shares -- (7,596,605)
------------ ------------
Share Transactions--
Proceeds from sale of shares 11,722,846 23,389,601
Net asset value of shares issued to shareholders in payment of -- 774,594
distributions declared
Cost of shares redeemed (14,505,823) (8,405,450)
------------ ------------
Change in net assets resulting from share transactions (2,782,977) 15,758,745
------------ ------------
Change in net assets (19,521,283) 30,446,207
Net Assets:
Beginning of period 58,223,334 27,777,127
------------ ------------
End of period $ 38,702,051 $58,223,334
- -----------------------------------------------------------------------------------------------------------------------
</TABLE>
(See Notes which are an integral part of the Financial Statements)
FINANCIAL HIGHLIGHTS
Riggs Small Company Stock Fund
Class R Shares
(For a share outstanding throughout each period)
<TABLE>
<CAPTION>
Six Months
Ended
(unaudited)
October 31, Year Ended April 30,
1998 1998 1997 1996 1995(a)
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period $ 18.80 $ 12.80 $ 14.10 $ 10.43 $ 10.00
Income from investment operations
Net investment income/(loss) (0.01) (0.04) (0.01) (0.02) 0.02
Net realized and unrealized gain (loss) on investments (5.81) 9.23 (0.47) 4.05 0.41
--------- ------- ------- ------- -------
Total from investment operations (5.82) 9.19 (0.48) 4.03 0.43
--------- ------- ------- ------- -------
Less distributions
Distributions from net investment income -- -- -- (0.01) --
Distributions from net realized gain on investments -- (3.19) (0.82) (0.35) --
--------- ------- ------- ------- -------
Total distributions -- (3.19) (0.82) (0.36) --
--------- ------- ------- ------- -------
Net asset value, end of period $ 12.98 $ 18.80 $ 12.80 $ 14.10 $ 10.43
--------- ------- ------- ------- -------
Total return (b) (30.96%) 77.85% (3.76%) 39.43% 4.30%
Ratios to average net assets
Expenses 1.53%* 1.09% 1.00% 1.14% 1.66%*
Net investment income/(loss) (0.08%)* (0.26%) (0.07%) (0.13%) 0.98%*
Expense reimbursement/waiver (c) 0.15%* 0.09% 0.46% 0.80% 1.54%*
Supplemental data
Net assets, end of period (000 omitted) $ 38,575 $58,223 $27,777 $19,289 $ 7,609
Portfolio turnover 48% 108% 93% 70% 8%
- ------------------------------------------------------------------------------------------------------------------
</TABLE>
* Computed on an annualized basis.
(a) Reflects operations for the period from February 27, 1995 (date of initial
public investment) to April 30, 1995.
(b) Based on net asset value, which does not reflect the sales charge or
contingent deferred sales charge, if applicable.
(c) This voluntary expense decrease is reflected in both the expense and net
investment income ratios shown above.
(See Notes which are an integral part of the Financial Statements)
FINANCIAL HIGHLIGHTS
Riggs Small Company Stock Fund
Class B Shares
(For a share outstanding throughout the period)
<TABLE>
<CAPTION>
Period
Ended
(unaudited)
October 31,
1998(c)
<S> <C>
Net asset value, beginning of period $ 17.25
Income from investment operations
Net investment income (0.01)
Net realized and unrealized gain (loss) on investments 4.28
---------
Net asset value, end of period $ 12.96
---------
Total return (a) (24.87%)
Ratios to average net assets
Expenses 1.99%*
Net investment income (0.47%)*
Expense waiver/reimbursement (b) 0.25%*
Supplemental data
Net assets, end of period (000 omitted) $ 127
Portfolio turnover 48%
- -----------------------------------------------------------------------------------------
</TABLE>
* Computed on an annualized basis.
(a) Based on net asset value, which does not reflect the sales charge or
contingent deferred sales charge, if applicable.
(b) This voluntary expense decrease is reflected in both the expense and net
investment income ratios shown above.
(c) Class B commenced operations on July 1, 1998.
(See Notes which are an integral part of the Financial Statements)
COMBINED NOTES TO FINANCIAL STATEMENTS
Riggs Funds
October 31, 1998 (unaudited)
(1) Organization
Riggs Funds (the "Trust") is registered under the Investment Company Act of
1940, as amended (the "Act"), as an open-end management investment company. The
Board of Trustees (the "Trustees")approved a change in the name of the Trust
from RIMCO Monument Funds to Riggs Funds, the name of the Bond Fund to U.S.
Government Securities Fund, and the name of the Small Capitalization Equity Fund
to Small Stock Fund effective July 1, 1998. The Trust consists of five
diversified portfolios (individually referred to as the "Fund", or collectively
as the "Funds") which are presented herein:
<TABLE>
<CAPTION>
Portfolio Name Investment Objective
<S> <C>
Riggs U.S. Treasury Money Market Fund To provide current income consistent with
("Treasury Fund") stability of principal and liquidity.
Riggs Prime Money Market Fund To provide current income consistent with
("Prime Fund") stability of principal and liquidity.
Riggs U.S. Government Securities Fund To achieve current income.
("U.S. Government Securities Fund")
Riggs Stock Fund ("Stock Fund") To provide growth of capital and income.
Riggs Small Company Stock Fund
("Small Company Fund") To provide long-term capital appreciation.
</TABLE>
Effective July 1, 1998, Prime Fund and Treasury Fund offers two classes of
shares, Class Y Shares and Class R Shares (formerly, Class A Shares and Class B
Shares, respectively, for Prime Fund); U.S. Government Securities Fund continues
to issue one class of shares (designated as Class R Shares); and Stock Fund and
Small Company Fund will offer two classes of shares, its existing class
(designated as Class R Shares) and a new class (designated as 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.
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 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 October 31, 1998, the Prime Fund and U.S. Government Fund, for federal tax
purposes, had a capital loss carryforward of $876,105 and $2,733,203
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 U.S. Government Securities
Fund of any liability for federal tax. Pursuant to the Code, such capital loss
carryforward of the Prime Fund will expire 2002 ($836,919), 2003 ($20,474), 2005
($14,610), and 2006 ($4,102). The capital loss carryforward of the U.S.
Government Securities Fund will expire 2003 ($3,106,007), and 2005 ($470,326).
Additionally, a net capital loss of $11,490 for the Prime Fund attributable to
security transactions incurred after October 31, 1997, are treated as arising on
May 1, 1998, the first day of the Fund's next taxable year.
When-Issued and Delayed Delivery Transactions
The Funds may engage in when-issued or delayed delivery transactions. The Funds
record when-issued securities on the trade date and maintain security positions
such that sufficient liquid assets will be available to make payment for the
securities purchased. Securities purchased on a when-issued or delayed delivery
basis are marked to market daily and begin earning interest on the settlement
date.
Deferred Expenses
The costs incurred by each Fund with respect to registration of their shares in
their first fiscal year, excluding the initial expense of registering their
shares, have been deferred and are being amortized over a period not to exceed
five years from each Fund's commencement date.
Use of Estimates
The preparation of financial statements in conformity with generally accepted
accounting principles requires management to make estimates and assumptions that
affect the amounts of assets, liabilities, expenses and revenues reported in the
financial statements. Actual results could differ from those estimated.
Other
Investment transactions are accounted for on the trade date.
(3) Shares of Beneficial Interest
The Declaration of Trust permits the Trustees to issue an unlimited number of
full and fractional shares of beneficial interest (without par value).
Transactions in shares were as follows:
<TABLE>
<CAPTION>
Treasury Fund
Six Months Ended Year Ended
Class Y Shares October 31, 1998 April 30, 1998
<S> <C> <C>
Shares sold 125,082,464 277,959,898
Shares issued to shareholders in payment of distributions declared 613,581 1,500,215
Shares redeemed (136,769,327) (303,046,901)
---------------- --------------
Net change resulting from Class Y Shares transactions (11,073,282) (23,586,788)
- -------------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
Treasury Fund
Period Ended
Class R Shares October 31, 1998(a)
<S> <C>
Shares sold 3,308,766
Shares issued to shareholders in payment of distributions declared 15,963
Shares redeemed (287,319)
----------------
Net change resulting from Class R Shares transactions 3,037,410
----------------
Net change resulting from share transactions (8,035,872)
- ---------------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
Prime Fund
Six Months Ended Year Ended
Class Y Shares October 31, 1998 April 30, 1998
<S> <C> <C>
Shares sold 613,607,460 1,618,160,015
Shares issued to shareholders in payment of distributions declared 1,857,854 6,212,437
Shares redeemed (652,385,635) (1,678,272,255)
--------------- -------------
Net change resulting from Class Y Shares transactions (36,920,321) (53,899,803)
--------------- -------------
</TABLE>
<TABLE>
<CAPTION>
Prime Fund
Six Months Ended Year Ended
Class R Shares October 31, 1998 April 30, 1998
<S> <C> <C>
Shares sold 14,086,733 50,323,930
Shares issued to shareholders in payment of distributions declared 29,669 10,332
Shares redeemed (11,631,284) (76,088,979)
---------------- --------------
Net change resulting from Class R Shares transactions 2,485,118 (25,754,717)
---------------- --------------
Net change resulting from share transactions (34,435,203) (79,654,520)
---------------- --------------
</TABLE>
<TABLE>
<CAPTION>
U.S Government Securities Fund
Six Months Ended Year Ended
Class R Shares October 31, 1998 April 30, 1998
<S> <C> <C>
Shares sold 522,702 1,294,447
Shares issued to shareholders in payment of distributions declared 15,749 35,958
Shares redeemed (353,446) (1,177,844)
--------------- --------------
Net change resulting from Class R Shares transactions 185,005 152,561
--------------- --------------
</TABLE>
<TABLE>
<CAPTION>
Stock Fund
Six Months Ended Year Ended
Class R Shares October 31, 1998 April 30, 1998
<S> <C> <C>
Shares sold 849,446 2,347,730
Shares issued to shareholders in payment of distributions declared 7,341 530,956
Shares redeemed (1,422,583) (1,591,271)
---------------- --------------
Net change resulting from Class R Shares transactions (565,796) 1,287,415
- --------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
Stock Fund
Period Ended
Class B Shares October 31, 1998(b)
<S> <C>
Shares sold 6,645
Shares issued to shareholders in payment of distributions declared 4
Shares redeemed --
---------------
Net change resulting from Class B Shares transactions 6,649
---------------
Net change resulting from share transactions (559,147)
- ---------------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
Small Company Fund
Six Months Ended Year Ended
Class R Shares October 31, 1998 April 30, 1998
<S> <C> <C>
Shares sold 827,876 1,357,019
Shares issued to shareholders in payment of distributions declared -- 51,264
Shares redeemed (952,226) (482,797)
-------------- --------------
Net change resulting from Class R Shares transactions (124,350) 925,486
- -------------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
Small Company Fund
Period Ended
Class B Shares October 31, 1998(b)
<S> <C>
Shares sold 9,790
Shares issued to shareholders in payment of distributions declared --
Shares redeemed --
----------------
Net change resulting from Class B Shares transactions 9,790
----------------
Net change resulting from share transactions (114,560)
----------------
- -----------------------------------------------------------------------------------------------------------------------------
</TABLE>
(a) Class R commenced operations on July 1, 1998.
(b) Class B commenced operations on July 1, 1998.
(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>
Fund Annual Rate
<S> <C>
Treasury Fund 0.50%
Prime Fund 0.50%
U.S. Government Securities Fund 0.75%
Stock Fund 0.75%
Small Company Fund 0.80%
</TABLE>
Administrative Fee
Federated Administrative Services ("FAS") provides the Trust with certain
administrative personnel and services (including certain legal, fund accounting
and transfer agency services). The FAS fee is based on the level of average
aggregate net assets of the Trust for the period.
Distribution Services Fee
Prime Fund has adopted a Distribution Plan (the "Plan") pursuant to Rule 12b-1
under the Act. Under the terms of the Plan, effective July 1, 1998, Class R
Shares of Treasury Fund, Prime Fund, U.S. Government Securities Fund, Stock Fund
and Small Company Fund, and Class B Shares of Stock Fund and Small Company Fund
compensate Federated Securities Corp. ("FSC"), the principal distributor, from
the net assets of Class R Shares of the Prime Fund to finance activities
intended to result in the sale of the Prime Fund's Class R Shares. The Plan
provides that the Class R Shares of Prime Fund and Treasury Fund may incur
distribution expenses up to 0.50%; Class R Shares of U.S. Government Securities
Fund, Stock Fund and Small Company Fund may incur distribution expenses up to
0.25%; and Class B Shares of Stock Fund and Small Company Fund may incur
distribution expense of up to 0.75%; respectively, of the average daily net
assets of the respective class of shares, annually, to compensate FSC.
Shareholder Services Fee
Under the terms of a Shareholder Services Agreement with FAS, effective July 1,
1998, each Fund pays up to 0.25% of average daily net assets of the Fund for the
period. The fee is paid to FAS to finance certain services for shareholders and
to maintain shareholder accounts.
Custodian Fees
Riggs Bank N.A. is the Fund'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, 1998,
the following amounts were paid pursuant to this agreement:
<TABLE>
<CAPTION>
Expenses Paid
for the Six
Fund Effective Date Expenses October 31, 1998
<S> <C> <C> <C>
Small Company Fund February 6, 1995 $22,693 $3,100
</TABLE>
General
Certain of the Officers and Trustees of the Trust are Officers and Directors or
Trustees of the above companies.
(5) Investment Transactions
Purchases and sales of investments, excluding short-term obligations, for the
six months ended October 31, 1998, were as follows:
<TABLE>
<CAPTION>
Fund Purchases Sales
<S> <C> <C>
U.S. Government Securities Fund $19,964,517 $18,278,179
Stock Fund 22,345,033 29,940,216
Small Company Fund 20,005,329 21,215,929
</TABLE>
(6) Year 2000 (unaudited)
Similar to other financial organizations, the Funds could be adversely affected
if the computer systems used by the Fund's service providers do not properly
process and calculate date-related information and data from and after January
1, 2000. The Fund's Adviser and Administrator are taking measures that they
believe are reasonably designed to address the Year 2000 issue with respect to
computer systems that they use and to obtain reasonable assurances that
comparable steps are being taken by each of the Fund's other service providers.
At this time, however, there can be no assurance that theses steps will be
sufficient to avoid any adverse impact to the Funds.
TRUSTEES OFFICERS
John F. Donahue John F. Donahue
Thomas G. Bigley Chairman
John T. Conroy, Jr.
Nicholas Constantakis Edward C. Gonzales
William J. Copeland President and Treasurer
James E. Dowd, Esq.
Lawrence D. Ellis, M.D. J. Christopher Donahue
Edward L. Flaherty, Jr., Esq. Executive Vice President
Edward C. Gonzales
Peter E. Madden John W. McGonigle
John E. Murray Executive Vice President and Secretary
Wesley W. Posvar
Marjorie P. Smuts Joseph S. Machi
Vice President and Assistant Treasurer
Richard B. Fisher
Vice President
C. Grant Anderson
Assistant Secretary
Mutual funds are not bank deposits or obligations, are not guaranteed by any
bank, and are not insured or guaranteed by the U.S. government, the Federal
Deposit Insurance Corporation, the Federal Reserve Board, or any other
government agency. Investment in mutual funds involves investment risk,
including possible loss of principal. Although money market funds seek to
maintain a stable net asset value of $1.00 per share, there is no assurance that
they will be able to do so.
This report is authorized for distribution to prospective investors only when
preceded or accompanied by the Funds' prospectus which contains facts concerning
the Funds' objectives and policies, management fees, expenses and other
information.
Cusip 76656A 104
Cusip 76656A 203
Cusip 76656A 302
Cusip 76656A 500
Cusip 76656A 609
Cusip 76656A 807
Cusip 76656A 401
1111202A (12/98)
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