Combined Annual Report
to Shareholders
April 30,1998
Riggs U.S. Treasury Money Market Fund
Riggs Prime Money Market Fund
Riggs U.S. Government SecuritiesFund
(formerly RIMCO Monument Bond Fund)
Riggs Stock Fund
Riggs Small Company Stock Fund
(formerly RIMCO Monument Small
Capitalization Equity Fund)
Mutual Funds are not FDIC insured and are not deposits or obligations of or
guaranteed by Riggs Bank N.A. They involve investment risks, including the
possible loss of the principal amount invested.
Federated Securities Corp., Distributor [LOGO]
(formerly RIMCO Monument Funds)
PRESIDENT'S MESSAGE
Dear Investor:
I am pleased to present the Annual Report for the Riggs Funds (formerly, the
RIMCO Monument Funds) for the 12-month period from May 1, 1997 through April 30,
1998. It begins with an investment commentary by each portfolio manager,
followed by a complete list of holdings and the financial statements for Riggs
U.S. Treasury Money Market Fund, Riggs Prime Money Market Fund, Riggs U.S.
Government Securities Fund (formerly, RIMCO Monument Bond Fund), Riggs Stock
Fund, and Riggs Small Company Stock Fund (formerly, RIMCO Monument Small
Capitalization Equity Fund).
It was a strong year for all Riggs Funds, as indicated by the following fund
performance summary:
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. The fund's portfolio of U.S. Treasury
money market securities paid a total of $0.05 per share in dividends over the
reporting period for a total return of 5.00%.* The 7-day net yield began the
reporting period on May 1, 1997 at 4.84% and ended the reporting period on April
30, 1998 at 4.74%.+ Net assets in the fund totaled $117.4 million at the end of
the reporting 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
(formerly, Class A Shares) paid dividends totaling $0.05 per share for a total
return of 5.22%, while Class R Shares (formerly, Class B Shares) paid dividends
totaling $0.05 per share for a total return of 4.92%.* The 7-day net yield for
Class Y Shares began the reporting period on May 1, 1997 at 5.12% and ended the
reporting period on April 30, 1998 at 5.01%.+ The 7-day net yield for Class R
Shares began the reporting period on May 1, 1997 at 4.62% and ended the
reporting period on April 30, 1998 at 4.76%.+ The fund ended the reporting
period with total net assets of $318.6 million.
Riggs U.S. Government Securities Fund
This fund's well-diversified bond portfolio paid dividends totaling $0.57 per
share, while its net asset value rose from $9.41 to $9.77. The dividends and net
asset value increase resulted in a total return of 10.14% (4.90% adjusted for
the fund's sales charge).+ Net assets in the fund totaled $34.5 million at the
end of the reporting period, which were invested across corporate bonds (2.9%),
government agency securities (35.2%) and U.S. Treasury obligations (59.8%).
Riggs Stock Fund
During the reporting period, the fund's diversified portfolio of high-quality
stocks_which included many household names like American Express, AT&T, Compaq,
Hilton Hotels, Intel, Merck, Mobil, Sears, and Xerox_produced a very strong
total return of 39.68% (31.65% adjusted for the fund's sales charge). This
return was the result of a $1.16 increase in net asset value, $0.11 per share in
dividend income and $4.04 per share in capital gains.+ The fund's total net
assets reached $117.1 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. ++It rewarded shareholders with an
extremely high return of 77.85% (67.64% adjusted for the fund's sales charge). A
very high level of growth in the fund's net asset value_from $12.80 to
$18.80_and capital gains totaling $3.19 per share accounted for the total
return.+ At the end of the reporting period, fund assets reached $58.2 million.
As the enclosed letter fully explains, on July 1, 1998 the name of the RIMCO
Monument Funds will be changed to the Riggs Funds. That means you now can follow
the daily performance of your investment under the name 'Riggs Funds' in
newspaper and other mutual fund listings. Thank you for selecting this fund
family to pursue your financial goals. We hope you are pleased with your
progress.
Sincerely,
/s/Edward C. Gonzales
Edward C. Gonzales
President
June 15, 1998
* Although money market funds seek to maintain a stable net asset value of
$1.00, there is no assurance that they will be able to do so. An investment
in this fund is neither insured nor guaranteed by the U.S. government.
+ Performance quoted reflects past performance and is not indicative of future
results. Investment return and principal value will fluctuate so that an
investor's shares, when redeemed, may be worth more or less than their
original cost. Yield will vary. Yields quoted for money market funds most
closely reflect the funds' current earnings.
++ Small cap stocks have historically experienced greater volatility than
average.
INVESTMENT REVIEW
Riggs U.S. Government Securities Fund
(formerly, RIMCO Monument Bond Fund)
Following the fourth quarter rally which was inspired by economic troubles in
Asia, the fixed income markets settled into a stable trading range. The 30-year
Treasury bond yield remained in a narrow range of 5.75% to 6.05%. The U.S.
economy continued to be strong, and gains in employment and wages sparked fears
of a shift in Federal Reserve Board (the "Fed") policy towards a tightening of
credit. These factors created a flat yield curve, with 2- and 10-year Treasury
notes yielding approximately the same.
During the summer months, we expect a pick-up in market volatility and a re-
steepening of the yield curve. In this environment, we favor maturities inthe 2-
to 7-year range. We also look for continued capital flows into U.S.dollar
denominated fixed income products given their attractive yields relative to
foreign bond markets. While psychology of the market may shift toward a Fed
tightening, we do not expect a policy change given the unsettled situation in
Asia, specifically in Japan and China.
RiggsStock Fund ("Stock Fund")
Riggs Small Company Stock Fund
("Small Company Fund")
(formerly, RIMCO Monument Small Capitalization Equity Fund)
The Stock Fund and the Small Company Fund continued to provide solid returns to
our shareholders for the twelve-month period ended April 30, 1998. During the
reporting period, the Stock Fund generated a total return of 39.68%, based on
net asset value, while the Small Company Fund generated a total return of
77.85%, based on net asset value.*
Our investment philosophy in managing both equity funds is to balance long-term
valuation with the catalyst of short-term earnings acceleration. We employ our
methodology, which we call Value/Momentum, by 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.
Over the reporting period, we continued to maintain broad diversification among
industries. In the Stock Fund, companies in the technology and consumer cyclical
sectors added significantly to performance, which was partially offset by
weakness in the energy sector. Examples of core holdings in the Stock Fund that
were propelled by superior earnings growth included: Cisco Systems, up 112%;
Xerox, up 85%; and Office Depot, up 108%.
The Small Company Fund experienced strong stock performance across many industry
groups. In particular, stocks in the health care and consumer cyclical sectors
benefited from continued strength in the domestic economy. Noteworthy are the
contributions from United Payors & United Providers, up 153%; Atlantic Coast
Airlines, up 361%; and Goody's Family Clothing, up 76%.
While the environment for stocks has been very favorable, the markets have
become extremely volatile. Global changes have made competition more intense and
will magnify the importance of strong management. Despite the problems in Asia
and occasional profit warnings, inflation has continued to be moderate and the
domestic economy has remained healthy. Thus, we remain positive on the markets
going forward. However, we temper our optimism with our belief that earnings
growth will moderate from the torrid pace of the past few years.
Through all market environments, we believe that our disciplined focus on
undervalued companies with solid earnings growth should continue to reward
shareholders.
Riggs Prime Money Market Fund ("Prime Fund")
RiggsU.S. Treasury Money Market Fund
("Treasury Fund")
In our October 1997 review and outlook, we referred to two major forces working
to determine Fed policy toward short term interest rates. The first force was
the continuously surprising strong Gross Domestic Product ("GDP") and employment
growth the U.S. economy was undergoing, which led the Fed to maintain a
tightening bias toward rates. The second force at work was, and remains, the
"Asian crisis". This crisis, characterized by plummeting currency, stock, and
bond markets in Asia, has led to the anticipation of sharply lower U.S. exports,
lower prices for goods imported into the U.S. and generally lower U.S. GDP
growth.
These two main forces have essentially remained the same since October 1997,
which has led to very little change in short-term corporate interest rates.
Short rates for Treasury bills remain well below the federal funds target rate
of 5.5%, leaving treasury-backed repurchase agreements as the investment of
choice for the Treasury Fund. Commercial paper rates have declined 0.04% to 5.5%
for 3-month commercial paper and declined 0.11% to 5.62% for 9-month commercial
paper. This leaves the short corporate yield curve very flat, with little
benefit to extending out the curve. Duration of the Prime Fund will be kept in
the area of 60 days until rates are more attractive further out on the yield
curve.
* 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.
Riggs U.S. Government Securities Fund
(formerly, RIMCO Monument Bond Fund)
Class R Shares
Growth of $10,000 Invested in Riggs U.S. Government Securities Fund
The graph below illustrates the hypothetical investment of $10,000* in the Riggs
U.S. Government Securities Fund (the "Fund") from May 11, 1992 (start of
performance) to April 30, 1998, compared to the Lehman Brothers
Government./Corporate Total Index ("LBGCTI").
[GRAPHIC REPRESENTATION "A" OMITTED. SEE APPENDIX.]
AVERAGE ANNUAL TOTAL RETURN** FOR THE PERIOD ENDED APRIL 30, 1998
1 Year 4.90%
5 Years 5.13%
Start of Performance (5/11/92) 6.45%
Past performance is not predictive of future performance. Your investment return
and principal value will fluctuate so when shares are redeemed, they may be
worth more or less than original cost. Mutual funds are not obligations of or
guaranteed by any bank and are not federally insured.
* Represents a hypothetical investment of $10,000 in the Fund after deducting
the maximum sales charge of 3.50% ($10,000 investment minus $350 sales
charge=$9,650). The Fund's performance assumes the reinvestment of all
dividends and distributions. The LBGCTI has been adjusted to reflect
reinvestment of dividends on securities in the index. Effective December 18,
1995, the maximum sales charge increased to 4.75%. Effective July 1, 1998, the
front-end sales charge will be eliminated, and a contingent deferred sales
charge of 2.00% will be implemented for newly purchased shares.
**Total return quoted reflects all applicable sales charges.
+The LBGCTI is not adjusted to reflect sales loads, expenses, or other fees
that the Securities and Exchange Commission ("SEC") requires to be reflected
in the Fund's performance.
This index is unmanaged.
Riggs Stock Fund
Class R Shares
Growth of $10,000 Invested in Riggs Stock Fund
The graph below illustrates the hypothetical investment of $10,000* in the Riggs
Stock Fund (the "Fund") from May 11, 1992 (start of performance) to April 30,
1998 compared to the Standard & Poor's 500 Index ("S&P 500").
[GRAPHIC REPRESENTATION "B" OMITTED. SEE APPENDIX.]
AVERAGE ANNUAL TOTAL RETURN** FOR THE PERIOD ENDED APRIL 30, 1998
1 YEAR 31.65%
5 YEARS 22.51%
START OF PERFORMANCE (05/11/92) 19.83%
Past performance is not predictive of future performance. Your investment return
and principal value will fluctuate so when shares are redeemed, they may be
worth more or less than original cost. Mutual funds are not obligations of or
guaranteed by any bank and are not federally insured.
* Represents a hypothetical investment of $10,000 in the Fund after deducting
the sales charge of 3.50% ($10,000 investment minus $350 sales charge =
$9,650). The Fund's performance assumes the reinvestment of all dividends and
distributions. The S&P 500 has been adjusted to reflect reinvestment of
dividends on securities in the index. Effective December 18, 1995 the maximum
sales charge increased to 5.75%. Effective July 1, 1998, the front-end sales
charge will be eliminated, and a contingent deferred sales charge of 2.00% for
newly purchased shares will be implemented on the existing class of the Fund.
**Total return quoted reflects all applicable sales charges.
+ S&P 500 is not adjusted to reflect sales loads, expenses, or other fees that
the SEC requires to be reflected in the Fund's performance. This index is
unmanaged.
Riggs Small Company Stock Fund
(formerly, RIMCO Monument Small Capitalization Equity Fund)
Class R Shares
Growth of $10,000 Invested in Riggs Small Company Stock Fund
The graph below illustrates the hypothetical investment of $10,000* in the Riggs
Small Company Stock Fund (the "Fund") from February 27, 1995 (start of
performance) to April 30, 1998, compared to the Russell 2000 Index ("Russell
2000").
[GRAPHIC REPRESENTATION "C" OMITTED. SEE APPENDIX.]
AVERAGE ANNUAL TOTAL RETURN** FOR THE PERIOD ENDED APRIL 30, 1998
1 Year 67.64%
Start of Performance (2/27/95) 31.79%
Past performance is not predictive of future performance. Your investment return
and principal value will fluctuate so when shares are redeemed, they may be
worth more or less than original cost. Mutual funds are not obligations of or
guaranteed by any bank and are not federally insured.
* Represents a hypothetical investment of $10,000 in the Fund after deducting
the maximum sales charge of 3.50% ($10,000 investment minus $350 sales
charge=$9,650). The Fund's performance assumes the reinvestment of all
dividends and distributions. The Russell 2000 has been adjusted to reflect
reinvestment of dividends on securities in the index. Effective December 18,
1995, the maximum sales charge increased to 5.75%. Effective July 1, 1998, the
front-end sales charge will be eliminated, and a contingent deferred sales
charge of 2.00% will be implemented for newly purchased shares.
**Total return quoted reflects all applicable sales charges.
+ The Russell 2000 is not adjusted to reflect sales loads, expenses, or other
fees that the SEC requires to be reflected in the Fund's performance. This
index is unmanaged.
PORTFOLIO OF INVESTMENTS
Riggs U.S. Treasury Money Market Fund
April 30, 1998
<TABLE>
<CAPTION>
Principal
Amount Value
<S> <C> <C>
U.S. Treasury ObligationsN6.0%
U.S. Treasury NoteN6.0%
$ 7,000,000 5.875%, 10/31/1998 $ 7,013,928
(a) Repurchase AgreementsN94.3%
36,912,000 Dean Witter Reynolds, Inc., 5.470%, dated 4/30/1998, due 5/1/1998 36,912,000
36,912,000 Donaldson, Lufkin and Jenrette Securities Corp., 5.500%,
dated 4/30/1998, due 5/1/1998 36,912,000
36,912,000 Prudential Securities, Inc., 5.470%, dated 4/30/1998, due 5/1/1998 36,912,000
Total Repurchase Agreements 110,736,000
Total Investments (at amortized cost)(b) $ 117,749,928
</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
($117,424,493) at April 30, 1998.
(See Notes which are an integral part of the Financial Statements)
STATEMENT OF ASSETS AND LIABILITIES
Riggs U.S. Treasury Money Market Fund
April 30, 1998
<TABLE>
<CAPTION>
Assets:
<S> <C>
Investments in repurchase agreements $110,736,000
Investments in securities 7,013,928
Total investments in securities, at amortized cost and value $117,749,928
Cash 667
Income receivable 17,973
Receivable for shares sold 2,933
Total assets 117,771,501
Liabilities:
Payable for shares redeemed 1,362
Income distribution payable 322,779
Accrued expenses 22,867
Total liabilities 347,008
Net Assets for 117,424,493 shares outstanding $117,424,493
Net Asset Value, Offering Price and Redemption Proceeds Per Share: $117,424,493
$117,424,493 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
April 30, 1998
<TABLE>
<CAPTION>
Investment Income:
<S> <C> <C>
Interest $7,762,803
Expenses:
Investment advisory fee $ 704,027
Administrative personnel and services fee 186,366
Custodian fees 11,010
Transfer and dividend disbursing agent fees and expenses 30,234
Trustees' fees 1,755
Auditing fees 14,228
Legal fees 2,711
Portfolio accounting fees 25,848
Share registration costs 17,652
Printing and postage 5,454
Insurance premiums 3,063
Miscellaneous 2,887
Total expenses 1,005,235
Waiver of investment advisory fee (119,268)
Net expenses 885,967
Net investment income $6,876,836
</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>
Year Ended April 30,
1998 1997
<S> <C> <C>
Increase (Decrease) in Net Assets:
OperationsN
Net investment income $ 6,876,836 $ 6,367,255
Distributions to ShareholdersN
Distributions from net investment income (6,876,836) (6,367,255)
Share TransactionsN
Proceeds from sale of shares 277,959,898 449,279,619
Net asset value of shares issued to shareholders in payment of distributions declared 1,500,215 860,699
Cost of shares redeemed (303,046,901) (416,232,679)
Change in net assets resulting from share transactions (23,586,788) 33,907,639
Change in net assets (23,586,788) 33,907,639
Net Assets:
Beginning of period 141,011,281 107,103,642
End of period $ 117,424,493 $ 141,011,281
</TABLE>
(See Notes which are an integral part of the Financial Statements)
FINANCIAL HIGHLIGHTS
Riggs U.S. Treasury Money Market Fund
Class Y Shares
<TABLE>
<CAPTION>
(For a share outstanding throughout each period)
Year Ended April 30,
1998 1997 1996 1995 1994
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
Income from net investment operations
Net investment income 0.05 0.05 0.05 0.04 0.03
Less distributions
Distributions from net investment income (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
Total return (a) 5.00% 4.83% 5.28% 4.39% 2.64%
Ratios to average net assets
Expenses 0.63% 0.57% 0.60% 0.60% 0.56%
Net investment income 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) $117,424 $141,011 $107,104 $81,089 $106,948
</TABLE>
(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 Prime Money Market Fund
April 30, 1998
<TABLE>
<CAPTION>
Principal
Amount Value
<S> <C> <C>
Commercial PaperN5.6%
FinanceN3.8%
$12,000,000 Associates Corp. of North America, 5.553%, 5/13/1998 $11,977,960
Producer ManufacturingN1.8%
6,000,000 General Electric Co., 5.578%, 6/11/1998 5,962,348
Total Commercial Paper 17,940,308
Corporate BondsN23.0%
BankingN1.2%
3,725,000 First USA Bank, 5.750%, 1/15/1999 3,720,858
Consumer Non-DurablesN2.0%
3,900,000 PepsiCo, Inc., 5.800%, 8/31/1998 3,897,635
1,000,000 PepsiCo, Inc., 7.625%, 11/1/1998 1,008,915
1,558,000 PepsiCo, Inc., 7.750%, 10/1/1998 1,571,679
Total 6,478,229
FinanceN17.2%
5,000,000 American General Finance Corp., 6.390%, 6/15/1998 5,005,112
15,575,000 Fleet Financial Group, Inc., 6.000%, 10/26/1998 15,594,290
5,000,000 Ford Capital BV, 9.000%, 8/15/1998 5,047,050
3,000,000 Ford Capital BV, 9.125%, 5/1/1998 3,000,000
4,200,000 Merrill Lynch & Co., Inc., 9.000%, 5/1/1998 4,200,000
1,465,000 NationsBank Corp., 5.125%, 9/15/1998 1,461,105
5,000,000 NationsBank Corp., 8.500%, 3/1/1999 5,118,036
5,250,000 Norwest Corp., 5.750%, 11/16/1998 5,248,960
1,500,000 Sears Overseas Financial, 5.695%, 7/12/1998 1,483,069
3,700,000 Sears Roebuck Acceptance Corp., 5.600%, 11/16/1998 3,698,613
5,000,000 Sears Roebuck Acceptance Corp., 6.110%, 10/26/1998 5,009,826
Total 54,866,061
Finance - AutomotiveN1.2%
1,000,000 Chrysler Financial Corp., 5.375%, 10/15/1998 999,021
1,500,000 Ford Motor Credit Corp., 5.625%, 1/15/1999 1,497,805
750,000 Ford Motor Credit Corp., 8.000%, 1/15/1999 762,157
480,000 General Motors Acceptance Corp., 7.750%, 1/15/1999 487,085
Total 3,746,068
Finance - EquipmentN0.3%
1,015,000 General Electric Capital Corp., 6.125%, 3/4/1999 1,017,386
Retail TradeN1.1%
3,305,000 Sears, Roebuck & Co., 8.450%, 11/1/1998 3,348,772
Total Corporate Bonds 73,177,374
</TABLE>
<TABLE>
<CAPTION>
Corporate NotesN34.8%
<S> <C> <C>
BankingN3.1%
10,000,000 American Express Centurion Bank, DE, 5.616%, 9/25/1998 10,000,000
FinanceN19.4%
500,000 Associates Corp. of North America, 5.250%, 9/1/1998 499,168
1,000,000 Associates Corp. of North America, 5.290%, 11/2/1998 997,742
</TABLE>
Riggs Prime Money Market Fund
<TABLE>
<CAPTION>
Principal
Amount Value
<C> <S> <C>
Corporate Notes-continued
FinanceNcontinued
$ 3,050,000 Associates Corp. of North America, 7.250%, 5/15/1998 $ 3,051,918
3,000,000 Avco Financial Services, Inc., 5.500%, 5/1/1998 3,000,000
15,000,000 Bear Stearns Cos., Inc., 5.658%, 9/3/1998 15,000,000
750,000 CIT Group Holdings, Inc., 5.700%, 12/15/1998 750,392
6,175,000 CIT Group Holdings, Inc., 5.875%, 11/9/1998 6,172,444
1,550,000 CIT Group Holdings, Inc., 6.125%, 9/1/1998 1,550,966
1,500,000 Deutsche Bank Financial, Inc., 6.375%, 12/23/1998 1,504,650
1,000,000 Ford Motor Credit Corp., 9.250%, 6/15/1998 1,003,801
7,000,000 HFC, Ltd., 6.000%, 6/30/1998 7,001,584
1,000,000 Household Finance Corp., 6.890%, 5/11/1998 1,000,175
3,210,000 Household International, Inc., (Guaranteed by Household International, Inc.),
5.250%, 10/15/1998 3,204,818
10,000,000 Merrill Lynch & Co., Inc., 5.606%, 7/28/1998 10,000,000
7,000,000 PHH Corp., 5.990%, 8/18/1998 7,002,124
Total 61,739,782
Finance - AutomotiveN4.7%
2,000,000 Chrysler Financial Corp., 6.240%, 11/2/1998 2,006,176
500,000 Chrysler Financial Corp., 6.300%, 6/23/1998 500,272
2,500,000 Chrysler Financial Corp., 6.570%, 10/5/1998 2,509,904
2,000,000 Chrysler Financial Corp., 7.290%, 7/7/1998 2,004,948
2,000,000 General Motors Acceptance Corp., 5.700%, 9/2/1998 2,000,375
4,000,000 General Motors Acceptance Corp., 6.300%, 6/4/1998 4,001,394
1,000,000 General Motors Acceptance Corp., 6.450%, 6/24/1998 1,000,807
1,000,000 General Motors Acceptance Corp., 6.500%, 6/4/1998 1,000,335
Total 15,024,211
Finance - EquipmentN7.6%
4,953,000 General Electric Capital Corp., 6.125%, 8/18/1998 4,956,171
1,000,000 International Lease Finance Corp., 5.200%, 9/15/1998 997,427
500,000 International Lease Finance Corp., 5.750%, 1/15/1999 499,342
2,000,000 International Lease Finance Corp., 6.120%, 8/7/1998 2,001,960
8,300,000 International Lease Finance Corp., 8.000%, 2/16/1999 8,451,642
2,115,000 International Lease Finance Corp., 8.350%, 10/1/1998 2,134,991
5,000,000 International Lease Finance Corp., 9.880%, 12/15/1998 5,130,592
Total 24,172,125
Total Corporate Notes 110,936,118
</TABLE>
<TABLE>
<CAPTION>
(a) Government Agencies-13.1%
<S> <C> <C>
Federal Farm Credit Bank-0.1%
500,000 5.430%, 11/16/1998 484,992
Federal Home Loan Bank-6.3%
20,000,000 5.508%, 4/1/1999 19,988,068
Federal National Mortgage Association-0.4%
1,250,000 5.253%, 5/25/1999 1,248,737
Student Loan Marketing Association-6.3%
20,100,000 5.263% - 5.333%, 9/28/1998 - 3/7/2001 20,077,921
Total Government Agencies 41,799,718
</TABLE>
Riggs Prime Money Market Fund
<TABLE>
<CAPTION>
Principal
Amount Value
<S> <C> <C>
(a) Notes - Variable-20.7%
Asset-Backed Securities-3.1%
$10,000,000 Asset Backed Security Investment Trust, 5.688%, 5/13/1998 $10,000,000
BankingN4.1%
13,000,000 U.S. Bank, NA, Minneapolis, 5.526%, 5/18/1998 12,995,183
FinanceN10.4%
15,000,000 Bankers Trust Co., New York, 5.648%, 6/1/1998 14,997,435
2,000,000 Bear Stearns Cos., Inc., (Series B), 5.710%, 5/11/1998 2,000,597
10,000,000 Morgan Stanley, Dean Witter & Co., 5.788%, 6/13/1998 10,000,000
6,000,000 PHH Corp., 5.646%, 5/26/1998 5,999,998
Total 32,998,030
Finance - InsuranceN3.1%
10,000,000 Allstate Life Insurance Co., GIC, 5.816%, 5/1/1998 10,000,000
Total Notes - Variable 65,993,213
(b) Repurchase Agreements-1.9%
1,982,000 Dean Witter Reynolds, Inc., 5.470%, dated 4/30/1998, due 5/1/1998 1,982,000
1,982,000 Donaldson, Lufkin and Jenrette Securities Corp., 5.500%, dated 4/30/1998, due 5/1/1998 1,982,000
1,982,000 Prudential Securities, Inc., 5.470%, dated 4/30/1998, due 5/1/1998 1,982,000
Total Repurchase Agreements 5,946,000
Total Investments (at amortized cost)(c) $315,792,731
</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
($318,630,060) at April 30, 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
April 30, 1998
<TABLE>
<CAPTION>
Assets:
<S> <C> <C>
Total investments in securities, at amortized cost and value $315,792,731
Cash 116,371
Income receivable 3,788,281
Receivable for shares sold 28,063
Total assets 319,725,446
Liabilities:
Payable for shares redeemed $ 31,406
Income distribution payable 1,011,687
Accrued expenses 52,293
Total liabilities 1,095,386
Net Assets for 318,934,074 shares outstanding $318,630,060
Net Assets Consist of:
Paid in capital $318,937,478
Undistributed net investment income 578,296
Accumulated net realized loss on investments (885,714)
Total Net Assets $318,630,060
Net Asset Value, Offering Price and Redemption Proceeds Per Share:
Class Y Shares:
$318,121,889 \ 318,425,913 shares outstanding $1.00
Class R Shares:
$508,171 \ 508,161 shares outstanding $1.00
</TABLE>
(See Notes which are an integral part of the Financial Statements)
STATEMENT OF OPERATIONS
Riggs Prime Money Market Fund
Year Ended April 30, 1998
<TABLE>
<CAPTION>
Investment Income:
<S> <C> <C>
Interest $20,504,537
Expenses:
Investment advisory fee $ 1,803,267
Administrative personnel and services fee 478,888
Custodian fees 30,761
Transfer and dividend disbursing agent fees and expenses 73,806
Trustees' fees 2,504
Auditing fees 14,940
Legal fees 1,321
Portfolio accounting fees 56,563
Distribution services feeNClass R Shares 30,652
Share registration costs 18,099
Printing and postage 8,336
Insurance premiums 4,516
Miscellaneous 8,606
Total expenses 2,532,259
Waivers and reimbursementsN
Waiver of investment advisory fee $ (409,724)
Waiver of distribution services feeNClass R Shares (1,307)
Total waivers (411,031)
Net expenses 2,121,228
Net investment income 18,383,309
Realized and Unrealized Gain (Loss) on Investments
Net realized loss on investments (15,106)
Change in net assets resulting from operations $18,368,203
</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>
Year Ended April 30,
1998 1997
<S> <C> <C>
Increase (Decrease) in Net Assets:
OperationsN
Net investment income $ 18,383,309 $ 19,498,561
Net realized (loss)/gain on investments ($4,102 and $14,610 net loss, respectively,
as computed for federal tax purposes) (15,106) 2,503
Change in net assets resulting from operations 18,368,203 19,501,064
Distributions to ShareholdersN
Distributions from net investment income
Class Y Shares (18,106,563) (19,005,740)
Class R Shares (276,746) (495,896)
Change in net assets resulting from distributions to shareholders (18,383,309) (19,501,636)
Share TransactionsN
Proceeds from sale of shares 1,668,483,944 1,493,105,503
Net asset value of shares issued to shareholders in payment of distributions declared 6,222,769 6,512,524
Cost of shares redeemed (1,754,361,234) (1,469,070,241)
Change in net assets resulting from share transactions (79,654,521) 30,547,786
Change in net assets (79,669,627) 30,547,214
Net Assets:
Beginning of period 398,299,687 367,752,473
End of period (including undistributed net investment income of $578,296 and $578,296,
respectively) $ 318,630,060 $ 398,299,687
</TABLE>
(See Notes which are an integral part of the Financial Statements)
FINANCIAL HIGHLIGHTS
Riggs Prime Money Market Fund
Class Y Shares (formerly, Class A Shares)
<TABLE>
<CAPTION>
(For a share outstanding throughout each period)
Year Ended April 30,
1998 1997 1996 1995 1994
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
Income from investment operations
Net investment income 0.05 0.05 0.05 0.047 0.03
Net realized loss on investments -- -- -- (0.003) --
Total from investment operations 0.05 0.05 0.05 0.044 0.03
Less distributions
Distributions from net investment income (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
Total return (a) 5.22% 5.09% 5.50% 4.84%(b) 3.08%
Ratios to average net assets
Expenses 0.58% 0.51% 0.51% 0.44% 0.43%
Net investment income 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) $318,122 $372,037 $367,742 $284,059 $334,765
</TABLE>
(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 (formerly, Class B Shares)
<TABLE>
<CAPTION>
(For a share outstanding throughout each period)
Year Ended April 30,
1998 1997 1996(a)
<S> <C> <C> <C>
Net asset value, beginning of period $ 1.00 $ 1.00 $ 1.00
Income from investment operations
Net investment income 0.05 0.05 0.02
Less distributions
Distributions from net investment income (0.05) (0.05) (0.02)
Net asset value, end of period $ 1.00 $ 1.00 $ 1.00
Total return (b) 4.92% 4.57% 0.74%
Ratios to average net assets
Expenses 1.00% 1.01% 1.07%*
Net investment income 4.51% 4.58% 4.58%*
Expense reimbursement/waiver (c) 0.18% 0.17% 0.19%*
Supplemental data
Net assets, end of period (000 omitted) $ 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
(formerly, RIMCO MONUMENT BOND FUND)
APRIL 30, 1998
<TABLE>
<CAPTION>
Principal
Amount Value
<S> <C> <C>
Corporate BondsN2.9%
FinanceN2.9%
$1,000,000 EQCC Home Equity Loan Trust 1997-3, Class A8, 6.41%, 12/15/2004 $ 995,530
Total Corporate Bonds (identified cost $999,844) 995,530
Government AgenciesN35.2%
Federal Home Loan Mortgage CorporationN2.7%
620,000 6.79%, 5/24/2001 626,336
321,237 6.75%, 1/15/2018 321,324
Total 947,660
Federal National Mortgage AssociationN9.7%
1,000,000 8.50%, 2/1/2005 1,042,510
1,253,538 7.50%, 6/1/2012 1,289,578
669,382 9.50%, 6/25/2018 718,822
261,639 9.50%, 7/25/2019 284,276
Total 3,335,186
Government National Mortgage AssociationN22.8%
2,892,230 7.50%, 10/15/2027 2,972,663
2,284,044 8.00%, 10/15/2027 2,370,404
2,512,801 7.00%, 8/15/2027 2,544,990
Total 7,888,057
Total Government Agencies (identified cost $12,112,769) 12,170,903
U.S. Treasury ObligationsN59.8%
U.S. Treasury BondsN17.3%
2,771,000 6.25%, 8/15/2023 2,850,251
2,950,000 6.50%, 11/15/2026 3,143,078
Total 5,993,329
U.S. Treasury Notes N42.5%
10,300,000 5.50%, 3/31/2003 10,235,728
2,400,000 5.75%, 10/31/2002 2,406,048
720,000 6.125%, 8/15/2007 739,476
1,249,000 6.50%, 5/15/2005 1,303,755
Total 14,685,007
Total U.S. Treasury Obligations (identified cost $20,523,430) 20,678,336
(a) Repurchase AgreementsN2.8%
975,000 Donaldson, Lufkin and Jenrette Securities Corp., 5.50%,
dated 4/30/1998, due 5/1/1998 (at amortized cost) 975,000
Total Investments (identified cost $34,611,043)(b) $34,819,769
</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 $34,625,645. The
net unrealized appreciation/depreciation of investments on a federal tax
basis amounts to $194,124 which is comprised of $281,103 appreciation and
$86,979 depreciation at April 30, 1998.
Note: The categories of investments are shown as a percentage of net assets
($34,552,696) at April 30, 1998.
(See Notes which are an integral part of the Financial Statements)
STATEMENT OF ASSETS AND LIABILITIES
Riggs U.S. Government Securities Fund
(formerly, RIMCO MONUMENT BOND FUND)
APRIL 30, 1998
<TABLE>
<CAPTION>
Assets:
<S> <C>
Total investments in securities, at value (identified cost $34,611,043 and tax cost $34,625,645) $34,819,769
Cash 330
Income receivable 326,531
Receivable for shares sold 92,501
Total assets 35,239,131
Liabilities:
Payable for investments purchased $ 501,972
Payable for shares redeemed 25,426
Income distribution payable 149,343
Accrued expenses 9,694
Total liabilities 686,435
Net Assets for 3,536,121 shares outstanding $34,552,696
Net Assets Consist of:
Paid in capital $37,057,589
Net unrealized appreciation of investments 208,726
Accumulated net realized loss on investments (2,713,619)
Total Net Assets $34,552,696
Net Asset Value and Redemption Proceeds Per Share:
($34,552,696 O 3,536,121 shares outstanding) $9.77
Offering Price Per Share (100/95.25 of $9.77)* $10.26
*See "What Shares Cost" in the Prospectus.
</TABLE>
(See Notes which are an integral part of the Financial Statements)
STATEMENT OF OPERATIONS
Riggs U.S. Government Securities Fund
(formerly, RIMCO MONUMENT BOND FUND)
YEAR ENDED APRIL 30, 1998
<TABLE>
<CAPTION>
Investment Income:
<S> <C>
Interest $2,200,204
Expenses:
Investment advisory fee $ 246,668
Administrative personnel and services fee 48,888
Custodian fees 2,796
Transfer and dividend disbursing agent fees and expenses 30,436
Trustees' fees 1,102
Auditing fees 15,040
Legal fees 3,001
Portfolio accounting fees 28,622
Share registration costs 10,678
Printing and postage 5,094
Insurance premiums 2,250
Miscellaneous 5,165
Total expenses 399,740
Waiver of investment advisory fee (131,556)
Net expenses 268,184
Net investment income 1,932,020
Realized and Unrealized Gain (Loss) on Investments:
Net realized gain on investments 933,219
Net change in unrealized appreciation of investments 349,287
Net realized and unrealized gain on investments 1,282,506
Change in net assets resulting from operations $3,214,526
(See Notes which are an integral part of the Financial Statements)
</TABLE>
STATEMENT OF CHANGES IN NET ASSETS
Riggs U.S. Government Securities Fund
(formerly, RIMCO MONUMENT BOND FUND)
<TABLE>
<CAPTION>
Year Ended April 30,
1998 1997
<S> <C> <C>
Increase (Decrease) in Net Assets:
OperationsN
Net investment income $ 1,932,020 $ 2,165,890
Net realized gain (loss) on investments ($843,130 net gain and $349,287 net loss, respectively,
as computed for federal tax purposes) 933,219 (526,090)
Net change in unrealized appreciation/depreciation of investments 349,287 72,263
Change in net assets resulting from operations 3,214,526 1,712,063
Distributions to ShareholdersN
Distributions from net investment income (1,973,265) (2,124,645)
Share TransactionsN
Proceeds from sale of shares 12,504,323 6,128,321
Net asset value of shares issued to shareholders in payment of distributions declared 348,824 345,771
Cost of shares redeemed (11,370,863) (25,150,919)
Change in net assets resulting from share transactions 1,482,284 (18,676,827)
Change in net assets 2,723,545 (19,089,409)
Net Assets:
Beginning of period 31,829,151 50,918,560
End of period (including undistributed net investment income of
$0 and $41,245, respectively) $ 34,552,696 $ 31,829,151
</TABLE>
(See Notes which are an integral part of the Financial Statements)
FINANCIAL HIGHLIGHTS
Riggs U.S. Government Securities Fund
(formerly, RIMCO Monument Bond Fund)
Class R Shares
<TABLE>
<CAPTION>
(For a share outstanding throughout each period)
Year Ended April 30,
1998 1997 1996 1995 1994
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period $ 9.41 $ 9.47 $ 9.35 $ 9.46 $ 10.40
Income from investment operations
Net investment income 0.56 0.60 0.59 0.56 0.53
Net realized and unrealized gain (loss) on investments 0.37 (0.07) 0.12 (0.11) (0.38)
Total from investment operations 0.93 0.53 0.71 0.45 0.15
Less distributions
Distributions from net investment income (0.57) (0.59) (0.59) (0.56) (0.53)
Distributions from net realized gain N N N N (0.56)
Total distributions (0.57) (0.59) (0.59) (0.56) (1.09)
Net asset value, end of period $ 9.77 $ 9.41 $ 9.47 $ 9.35 $ 9.46
Total return (a) 10.14% 5.79% 7.60% 5.01% 1.10%
Ratios to average net assets
Expenses 0.82% 0.87% 0.80% 0.80% 0.68%
Net investment income 5.87% 6.36% 6.04% 6.06% 5.15%
Expense reimbursement/waiver (b) 0.40% 0.40% 0.40% 0.40% 0.48%
Supplemental data
Net assets, end of period (000 omitted) $34,521 $31,829 $50,919 $46,820 $47,552
Portfolio turnover 175% 171% 128% 262% 344%
</TABLE>
(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
April 30, 1998
<TABLE>
<CAPTION>
Shares Value
Common StocksN96.5%
Basic MaterialsN4.4%
<C> <S> <C>
31,255 Nucor Corporation $1,873,347
42,315 USX-U.S. Steel Group, Inc. 1,655,574
28,530 Weyerhaeuser Co. 1,644,041
Total 5,172,962
Capital GoodsN8.1%
35,155 Ingersoll-Rand Co. 1,619,327
27,380 Sundstrand Corp. 1,890,931
26,535 TRW, Inc. 1,401,380
15,175 Textron, Inc. 1,187,444
20,740 United Technologies Corp. 2,041,594
51,485 U.S. Industries, Inc. 1,396,531
Total 9,537,207
Consumer Non-DurablesN9.0%
50,935 Fort James Corp. 2,527,649
47,080 Philip Morris Cos., Inc. 1,756,673
30,270 Quaker Oats Co. 1,574,040
35,655 R.J.R. Nabisco, Inc., Class A 1,704,755
15,395 RJR Nabisco Holdings Corp. 428,173
33,845 Unilever N.V., ADR 2,525,683
Total 10,516,973
Consumer ServicesN6.0%
39,155 (a) AccuStaff, Inc. 1,404,686
56,110 (a) Cendant Corp. 1,402,750
37,340 Cracker Barrel Old Country Store 1,372,245
51,740 Hilton Hotels Corp. 1,652,446
17,145 Tribune Co. 1,131,570
Total 6,963,697
Electronic TechnologyN14.1%
64,020 (a) Bay Networks, Inc. 1,500,469
17,830 (a) Cisco Systems, Inc. 1,306,048
21,865 Compaq Computer Corp. 613,587
30,025 (a) EMC Corp. Mass 1,384,903
26,445 Intel Corp. 2,137,087
20,575 International Business Machines Corp. 2,384,128
21,935 Philips Electronics N.V., ADR 1,974,150
31,410 (a) Storage Technology Corp. 2,652,182
23,055 Xerox Corp. 2,616,743
Total 16,569,297
</TABLE>
<TABLE>
<CAPTION>
EnergyN10.8%
<C> <S> <C>
13,315 British Petroleum Co. PLC, ADR 1,258,268
26,245 Coastal Corp. 1,874,877
39,925 Halliburton Co. 2,195,875
28,050 Mobil Corp. 2,215,950
</TABLE>
Riggs Stock Fund
<TABLE>
<CAPTION>
Shares Value
Common StocksNcontinued
EnergyNcontinued
<C> <S> <C>
19,485 Schlumberger Ltd. $1,614,819
37,040 Texaco, Inc. 2,277,960
31,250 USX Corp. 1,119,141
Total 12,556,890
FinancialN13.6%
30,585 Ahmanson (H.F.) & Co. 2,332,106
24,210 American Express Co. 2,469,420
14,800 BankAmerica Corp. 1,258,000
17,055 BankBoston Corp. 1,840,874
4,635 Bankers Trust New York Corp. 598,494
40,170 First Union Corp. 2,425,264
10,660 Hartford Financial Services Group, Inc. 1,180,595
48,210 Provident Cos., Inc. 1,883,203
46,260 SLM Holding Corp. 1,974,724
Total 15,962,680
HealthcareN6.1%
59,190 Columbia/HCA Healthcare Corp. 1,949,571
66,645 (a) Humana, Inc. 1,799,415
18,570 Merck & Co., Inc. 2,237,685
41,319 (a) Vencor, Inc. 1,120,778
Total 7,107,449
Industrial ServicesN2.3%
24,695 Fluor Corp. 1,166,839
13,590 Laidlaw, Inc. 189,411
27,915 (a) USA Waste Services, Inc. 1,369,580
Total 2,725,830
Retail TradeN8.0%
43,165 American Stores Co. 1,035,960
61,280 (a) Office Depot, Inc. 2,029,900
65,200 (a) Safeway, Inc. 2,493,900
23,045 Sears, Roebuck & Co. 1,366,857
55,485 TJX Cos., Inc. 2,455,211
Total 9,381,828
TechnologyN0.5%
10,095 Computer Associates International, Inc. 591,188
TransportationN4.4%
8,285 (a) AMR Corp. 1,262,427
</TABLE>
<TABLE>
<C> <S> <C>
14,135 Delta Air Lines, Inc. 1,643,194
25,730 (a) UAL Corp. 2,243,334
Total 5,148,955
UtilitiesN9.2%
33,990 AT&T Corp. 2,041,524
22,940 Ameritech Corp. 976,384
20,305 Columbia Gas System, Inc. 1,649,781
</TABLE>
Riggs Stock Fund
<TABLE>
<S> <C> <C>
38,400 Edison International 1,144,800
17,980 FPL Group, Inc. 1,115,883
Shares Value
Common StocksNcontinued
UtilitiesNcontinued
37,775 GPU, Inc. $1,496,833
19,405 GTE Corp. 1,133,980
28,510 SBC Communications, Inc. 1,181,382
Total 10,740,567
Total Common Stocks (identified cost $85,378,589) 112,975,523
(b) Repurchase AgreementsN3.5%
4,129,000 Donaldson, Lufkin and Jenrette Securities Corp., 5.50%,
dated 4/30/1998, due 5/1/1998 4,129,000
Total Investments (identified cost $89,507,589 )(c) $117,104,523
</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 $89,668,415.
The net unrealized appreciation of investments on a federal tax basis
amounts to $27,436,108 which is comprised of $28,477,060 appreciation and
$1,040,952 depreciation at April 30, 1998.
Note: The categories of investments are shown as a percentage of net assets
($117,115,334) at April 30, 1998.
The following acronyms are used throughout this portfolio:
ADR - American Depository Receipt
PLC - Public Limited Company
(See Notes which are an integral part of the Financial Statements)
STATEMENT OF ASSETS AND LIABILITIES
Riggs Stock Fund
April 30, 1998
<TABLE>
<CAPTION>
Assets:
<S> <C>
Total investments in securities, at value (identified cost $89,507,589 and tax cost $89,668,415) $117,104,523
Cash 1,972
Income receivable 85,857
Receivable for shares sold 27,127
Total assets 117,219,479
Liabilities:
Payable for shares redeemed $ 85,318
Accrued expenses 18,827
Total liabilities 104,145
Net Assets for 7,069,524 shares outstanding $117,115,334
Net Assets Consist of:
Paid in capital $ 79,468,358
Net unrealized appreciation of investments 27,596,934
Accumulated net realized gain on investments 9,970,370
Undistributed net investment income 79,672
Total Net Assets $117,115,334
Net Asset Value and Redemption Proceeds Per Share:
($117,115,334 O 7,069,524 shares outstanding) $16.57
Offering Price Per Share (100/94.25 of $16.57)* $17.58
* See "What Shares Cost" in the Prospectus.
</TABLE>
(See Notes which are an integral part of the Financial Statements)
STATEMENT OF OPERATIONS
Riggs Stock Fund
Year Ended April 30, 1998
<TABLE>
<CAPTION>
Investment Income:
<S> <C>
Dividends $ 1,471,790
Interest 172,126
Total income 1,643,916
Expenses:
Investment advisory fee $ 790,694
Administrative personnel and services fee 139,892
Custodian fees 8,811
Transfer and dividend disbursing agent fees and expenses 40,643
Trustees' fees 2,190
Auditing fees 15,159
Legal fees 2,660
Portfolio accounting fees 30,674
Share registration costs 14,835
Printing and postage 5,646
Insurance premiums 3,285
Miscellaneous 4,028
Total expenses 1,058,517
Waiver of investment advisory fee (78,554)
Net expenses 979,963
Net investment income 663,953
Realized and Unrealized Gain (Loss) on Investments:
Net realized gain on investments 23,430,065
Net change in unrealized appreciation of investments 10,177,213
Net realized and unrealized gain on investments 33,607,278
Change in net assets resulting from operations $34,271,231
</TABLE>
(See Notes which are an integral part of the Financial Statements)
STATEMENT OF CHANGES IN NET ASSETS
Riggs Stock Fund
<TABLE>
<CAPTION>
Year Ended April 30,
1998 1997
<S> <C> <C>
Increase (Decrease) in Net Assets:
OperationsN
Net investment income $ 663,953 $ 1,050,292
Net realized gain on investments ($23,589,130 and $13,717,613, respectively,
as computed for federal tax purposes) 23,430,065 13,715,852
Net change in unrealized appreciation/depreciation 10,177,213 (2,163,305)
Change in net assets resulting from operations 34,271,231 12,602,839
Distributions to ShareholdersN
Distributions from net investment income (683,221) (1,013,053)
Distributions from net realized gains (23,035,017) (13,232,044)
Change in net assets resulting from distributions to shareholders (23,718,238) (14,245,097)
Share TransactionsN
Proceeds from sale of shares 36,671,637 23,284,614
Net asset value of shares issued to shareholders in payment of distributions declared 7,420,981 4,358,886
Cost of shares redeemed (26,672,024) (21,656,846)
Change in net assets resulting from share transactions 17,420,594 5,986,654
Change in net assets 27,973,587 4,344,396
Net Assets:
Beginning of period 89,141,747 84,797,351
End of period (including undistributed net investment income of $79,672 and $98,940, respectively) $117,115,334 $ 89,141,747
</TABLE>
(See Notes which are an integral part of the Financial Statements)
FINANCIAL HIGHLIGHTS
Riggs Stock Fund
Class R Shares
<TABLE>
<CAPTION>
(For a share outstanding throughout each period)
Year Ended April 30,
1998 1997 1996 1995 1994
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period $ 15.41 $ 15.84 $ 12.69 $ 11.89 $ 10.46
Income from investment operations
Net investment income 0.11 0.20 0.18 0.20 0.16
Net realized and unrealized gain on investments 5.20 2.28 4.00 1.39 1.44
Total from investment operations 5.31 2.48 4.18 1.59 1.60
Less distributions
Distributions from net investment income (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 (4.15) (2.91) (1.03) (0.79) (0.17)
Net asset value, end of period $ 16.57 $ 15.41 $ 15.84 $ 12.69 $ 11.89
Total return (a) 39.68% 16.34% 33.73% 14.16% 15.28%
Ratios to average net assets
Expenses 0.93% 0.91% 0.96% 0.98% 1.00%
Net investment income 0.63% 1.26% 1.26% 1.66% 1.36%
Expense reimbursement/waiver (b) 0.07% 0.12% 0.12% 0.14% 0.20%
Supplemental data
Net assets, end of period (000 omitted) $117,115 $89,142 $84,797 $66,019 $58,597
Average commission rate paid (c) $ 0.0668 $0.0619 $0.0687 N N
Portfolio turnover 94% 75% 81% 46% 89%
</TABLE>
(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) Represents total commissions paid on portfolio securities divided by total
portfolio shares purchased or sold on which commissions were charged. This
disclosure is required for fiscal years beginning on or after September 1,
1995.
(See Notes which are an integral part of the Financial Statements)
PORTFOLIO OF INVESTMENTS
Riggs Small Company Stock Fund
(formerly, RIMCO Monument Small Capitalization Equity Fund)
April 30, 1998
<TABLE>
<CAPTION>
Shares Value
Common StocksN91.9%
<C> <S> <C>
Basic Materials N4.2%
27,665 Calgon Carbon Corp. $ 335,438
39,620 (a) JLM Industries, Inc. 445,725
7,615 Medusa Corp. 468,323
18,700 (a) Quaker Fabric Corp. 535,288
29,400 (a) Synthetic Industries, Inc. 672,525
Total 2,457,299
Capital GoodsN7.6%
51,275 (a) Group Maintenance America Corp. 826,809
41,820 (a) ITEQ, Inc. 533,205
9,630 Kuhlman Corp. 471,870
44,557 (a) Middleby Corp. 356,456
42,130 (a) Trident International, Inc. 726,743
17,925 (a) Zebra Technologies Co., Class A 694,594
18,652 Zurn Industries, Inc. 804,368
Total 4,414,045
Consumer Non-DurablesN3.7%
22,775 Flowers Industries, Inc. 486,816
41,550 (a) Ralcorp Holdings, Inc. 825,806
14,225 (a) Suiza Foods Corp. 842,831
Total 2,155,453
Consumer ServicesN9.0%
18,280 (a) Budget Group, Inc., Class A 612,380
22,400 (a) Metamor Worldwide, Inc. 856,800
32,585 (a) Performance Food Group Co. 659,846
30,630 (a) ScanSource, Inc. 620,258
17,883 (a) Travel Services International, Inc. 659,436
9,870 (a) United Stationers, Inc. 623,044
28,670 (a) VDI Media 523,228
17,060 (a) Valassis Communication, Inc. 669,605
Total 5,224,597
Electronic TechnologyN6.6%
27,230 (a) ATMI, Inc. 759,036
28,705 (a) DSP Group, Inc. 606,393
10,000 (a) Etec Systems, Inc. 567,500
37,425 (a) Nimbus CD International, Inc. 399,980
18,410 (a) Sawtek, Inc. 559,204
27,615 (a) STB Systems, Inc. 395,240
</TABLE>
<TABLE>
<C> <S> <C>
44,816 (a) Telco System, Inc. 526,588
Total 3,813,941
EnergyN8.2%
27,525 (a) Gulfmark Offshore, Inc. 853,275
13,815 (a) Key Energy Group, Inc. 258,168
51,035 (a) Miller Exploration Co. 421,039
</TABLE>
Riggs Small Company Stock Fund
(formerly, RIMCO Monument Small Capitalization Equity Fund)
<TABLE>
<CAPTION>
Shares Value
Common StocksNcontinued
EnergyNcontinued
<C> <S> <C>
30,290 (a) National-Oilwell, Inc. $ 1,149,127
42,825 (a) Newpark Resources, Inc. 1,030,477
43,740 (a) Patterson Energy Inc. 612,360
22,786 (a) Swift Energy Co. 454,296
Total 4,778,742
FinancialN18.7%
22,376 Allied Capital Corp. 581,776
26,280 (a) Amresco, Inc. 952,650
21,050 Apartment Investment & Management Co., Class A 786,744
30,380 ESG, ADR 782,285
16,160 (a) FIRSTPLUS Financial Group, Inc. 783,760
19,020 (a) FPIC Insurance Group, Inc. 656,190
50,240 (a) Friedman, Billings, Ramsey Group, Inc., Class A 945,140
22,015 Hubco, Inc. 809,051
43,280 (a) Imperial Credit Commercial Mortgage Investment Corp. 624,855
31,200 John Alden Financial Corp. 682,500
26,880 Peoples Bancorp, Inc. 288,960
12,435 (a) Silicon Valley Bancshares 811,384
26,010 Sirrom Capital Corp. 777,049
12,700 Vesta Insurance Group, Inc. 719,138
16,122 Weingarten Realty Investors 687,200
Total 10,888,682
HealthcareN10.6%
40,180 (a) Dental Care Alliance, Inc. 582,610
15,310 Life Technologies, Inc. 535,850
9,080 (a) Lincare Holdings, Inc. 736,615
25,625 (a) Maxxim Medical, Inc. 669,453
36,645 (a) Paragon Health Network, Inc. 684,803
32,705 (a) Respironics, Inc. 545,765
8,955 (a) Steris Corp. 526,666
43,875 (a) Sun Healthcare Group, Inc. 734,906
22,915 (a) Trigon Healthcare, Inc. 696,043
14,335 (a) United Payors & United Providers, Inc. 444,385
Total 6,157,096
RetailN10.3%
</TABLE>
<TABLE>
<C> <S> <C>
25,465 (a) Finish Line, Inc., Class A 630,259
27,930 (a) Gadzooks, Inc. 733,163
32,005 (a) Goody's Family Clothing, Inc. 1,584,248
50,715 (a) Just For Feet, Inc. 1,115,730
14,855 (a) Pacific Sunwear of California 655,477
48,880 (a) PetSmart, Inc. 574,340
48,575 (a) Syms Corp. 719,517
Total 6,012,734
</TABLE>
Riggs Small Company Stock Fund
(formerly, RIMCO Monument Small Capitalization Equity Fund)
<TABLE>
<CAPTION>
<S> <C> <C>
Technology ServicesN4.8%
108,875 (a) Compucom System, Inc. 816,563
29,855 (a) Inacom Corp. 1,069,175
Shares or
Principal
Amount Value
Common StocksNcontinued
Technology ServicesNcontinued
39,910 (a) Savior Technology Group, Inc. $ 426,538
46,693 (a) The A Consulting Team, Inc. 493,195
Total 2,805,471
TransportationN7.1%
13,525 (a) Atlantic Coast Airlines, Inc. 765,008
33,350 Comair Holdings, Inc. 910,872
21,500 (a) Mesaba Holdings, Inc. 712,188
20,600 (a) Ryanair Holdings PLC, ADR 790,525
14,680 SkyWest, Inc. 594,540
47,124 (a) Trailer Bridge, Inc. 376,992
Total 4,150,125
UtilitiesN1.1%
23,240 UGI Corp. 644,910
Total Common Stocks (identified cost $41,846,705) 53,503,095
(b) Repurchase AgreementN7.9%
$4,587,000 Donaldson, Lufkin and Jenrette Securities Corp., 5.50%, dated 4/30/1998,
due 5/1/1998 (at amortized cost) 4,587,000
Total Investments (identified cost $46,433,705)(c) $58,090,095
</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 $46,592,522. The
net unrealized appreciation/depreciation of investments on a federal tax
basis amounts to $11,497,573 which is comprised of $12,525,099 appreciation
and $1,027,526 depreciation at April 30, 1998.
Note: The categories of investments are shown as a percentage of net assets
($58,223,334) at April 30, 1998.
The following acronyms are used throughout this portfolio:
ADR - American Depository Receipt
PLC - Public Limited Company
(See Notes which are an integral part of the Financial Statements)
STATEMENT OF ASSETS AND LIABILITIES
Riggs Small Company Stock Fund
(formerly, RIMCO Monument Small Capitalization Equity Fund)
April 30, 1998
<TABLE>
<CAPTION>
Assets:
<S> <C>
Total investments in securities, at value (identified $46,433,705 and tax cost $46,592,522) $58,090,095
Cash 596
Income receivable 2,284
Receivable for investments sold 896,938
Receivable for shares sold 295,832
Deferred organizational costs 12,304
Other assets 2,356
Total assets 59,300,405
Liabilities:
Payable for investments purchased $ 998,602
Payable for shares redeemed 75,965
Accrued expenses 2,504
Total liabilities 1,077,071
Net Assets for 3,096,418 shares outstanding $58,223,334
Net Assets Consist of:
Paid in capital $41,300,197
Net unrealized appreciation of investments 11,656,390
Accumulated net realized gain on investments 5,266,747
Total Net Assets $58,223,334
Net Asset Value and Redemption Proceeds Per Share:
($58,223,334 O 3,096,418 shares outstanding) $18.80
Offering Price Per Share (100/94.25 of $18.80)* $19.95
* See "What Shares Cost" in the Prospectus.
</TABLE>
(See Notes which are an integral part of the Financial Statements)
STATEMENT OF OPERATIONS
Riggs Small Company Stock Fund
(formerly, RIMCO Monument Small Capitalization Equity Fund)
Year Ended April 30, 1998
<TABLE>
<CAPTION>
Investment Income:
<S> <C>
Dividends $ 212,299
Interest 142,395
Total income 354,694
Expenses:
Investment advisory fee $ 338,723
Administrative personnel and services fee 58,191
Custodian fees 3,909
Transfer and dividend disbursing agent fees and expenses 24,529
Trustees' fees 2,207
Auditing fees 16,307
Legal fees 1,483
Portfolio accounting fees 28,863
Share registration costs 13,313
Printing and postage 5,535
Insurance premiums 1,997
Miscellaneous 5,257
Total expenses 500,314
Waiver of investment advisory fee (36,697)
Net expenses 463,617
Net operating loss (108,923)
Realized and Unrealized Gain (Loss) on Investments:
Net realized gain on investments 10,175,481
Net change in unrealized appreciation of investments 12,217,509
Net realized and unrealized gain on investments 22,392,990
Change in net assets resulting from operations $22,284,067
(See Notes which are an integral part of the Financial Statements)
</TABLE>
STATEMENT OF CHANGES IN NET ASSETS
Riggs Small Company Stock Fund
(formerly, RIMCO Monument Small Capitalization Equity Fund)
<TABLE>
<CAPTION>
Year Ended April 30,
1998 1997
<S> <C> <C>
Increase (Decrease) in Net Assets:
OperationsN
Net operating loss $ (108,923) $ (17,249)
Net realized gain on investments ($10,181,542 and $3,506,193 respectively,
as computed for federal tax purposes) 10,175,481 3,370,741
Net change in unrealized appreciation/depreciation 12,217,509 (4,671,477)
Change in net assets resulting from operations 22,284,067 (1,317,985)
Distributions to ShareholdersN
Distributions from net realized gains (7,596,605) (1,336,383)
Share TransactionsN
Proceeds from sale of shares 23,389,601 14,668,375
Net asset value of shares issued to shareholders in payment of distributions declared 774,594 93,490
Cost of shares redeemed (8,405,450) (3,619,751)
Change in net assets resulting from share transactions 15,758,745 11,142,114
Change in net assets 30,446,207 8,487,746
Net Assets:
Beginning of period 27,777,127 19,289,381
End of period $58,223,334 $27,777,127
</TABLE>
(See Notes which are an integral part of the Financial Statements)
FINANCIAL HIGHLIGHTS
Riggs Small Company Stock Fund
(formerly, RIMCO Monument Small Capitalization Equity Fund)
Class R Shares
<TABLE>
<CAPTION>
(For a share outstanding throughout each period)
Year Ended April 30,
1998 1997 1996 1995(a)
<S> <C> <C> <C> <C>
Net asset value, beginning of period $ 12.80 $ 14.10 $ 10.43 $ 10.00
Income from investment operations
Net investment income (0.04) (0.01) (0.02) 0.02
Net realized and unrealized gain (loss) on investments 9.23 (0.47) 4.05 0.41
Total from investment operations 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 $ 18.80 $ 12.80 $ 14.10 $ 10.43
Total return (b) 77.85% (3.76%) 39.43% 4.30%
Ratios to average net assets
Expenses 1.09% 1.00% 1.14% 1.66%*
Net investment income (0.26%) (0.07%) (0.13%) 0.98%*
Expense reimbursement/waiver (c) 0.09% 0.46% 0.80% 1.54%*
Supplemental data
Net assets, end of period (000 omitted) $58,223 $27,777 $19,289 $ 7,609
Average commission rate paid (d) $0.0631 $0.0691 $0.0650 -
Portfolio turnover 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.
(d) Represents total commissions paid on portfolio securities divided by total
portfolio shares purchased or sold on which commissions were charged. This
disclosure is required for fiscal years beginning on or after September 1,
1995.
(See Notes which are an integral part of the Financial Statements)
COMBINED NOTES TO FINANCIAL STATEMENTS
Riggs Funds
April 30, 1998
(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 approved a change in the name of the Trust from RIMCOMonument
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 Company
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:
Portfolio Name Investment Objective
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 To provide long-term capital
("Small Company Fund") appreciation.
Effective July 1, 1998, Prime Fund and Treasury Fund will offer 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 will
continue to issue one class of shares (to be designated as Class R Shares); and
Stock Fund and Small Company Fund will offer two classes of shares, its existing
class (to be designated as Class R Shares) and a new class (to be 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 Board of Trustees (the "Trustees").
Risks may arise from the potential inability of counterparties to honor the
terms of the repurchase agreement. Accordingly, the Funds could receive less
than the repurchase price on the sale of collateral securities.
Investment Income, Expenses and Distributions
Interest income and expenses are accrued daily. Bond premium and discount, if
applicable, are amortized as required by the Internal Revenue Code, as amended
(the "Code"). Dividend income and distributions to shareholders are recorded on
the ex-dividend date.
Income and capital gain distributions are determined in accordance with income
tax regulations which may differ from generally accepted accounting priciples.
These differences are primarily due to differing book/tax treatments of net
operating loss and market discount amortization. The following reclassifications
have been made to the financial statements.
Riggs Funds
<TABLE>
<CAPTION>
Increase (Decrease)
<S> <C> <C> <C>
Undistributed Accumulated
Paid-In Net Investment Net Realized
Fund Name Capital Income Gain
Small Company Fund - $108,923 $(108,923)
</TABLE>
Federal Taxes
It is the Funds' policy to comply with the provisions of the Code applicable to
regulated investment companies and to distribute to shareholders each year
substantially all of their income. Accordingly, no provisions for federal tax
are necessary.
At April 30, 1998, the Prime Fund and U.S. Government Securities 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 ($2,262,877), 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
Year Ended Year Ended
Class Y Shares April 30, 1998 April 30, 1997
<S> <C> <C>
Shares sold 277,959,898 449,279,619
Shares issued to shareholders in payment
dof distributions declared 1,500,215 860,699
Shares redeemed (303,046,901) (416,232,679)
Net change resulting from Class Y Shares
transactions (23,586,788) 33,907,639
Prime Fund
Year Ended Year Ended
Class Y Shares April 30, 1998 April 30, 1997
Shares sold 1,618,160,015 1,412,757,103
Shares issued to shareholders in payment
of distributions declared 6,212,437 6,512,315
Shares redeemed (1,678,272,255) (1,414,974,408)
Net change resulting from Class Y Shares
transactions (53,899,803) 4,295,010
</TABLE>
Riggs Funds
<TABLE>
<CAPTION>
Prime Fund
Year Ended Year Ended
Class R Shares April 30, 1998 April 30, 1997
<S> <C> <C> <C> <C> <C> <C>
Shares sold 50,323,930 80,348,400
Shares issued to shareholders in payment
of distributions declared 10,332 209
Shares redeemed (76,088,979) (54,095,833)
Net change resulting from Class R Shares
transactions (25,754,717) 26,252,776
Net change resulting from share
transactions (79,654,520) 30,547,786
U.S. Government Small
Securities Fund Stock Fund Company Fund
Year Year Year Year Year Year
Ended Ended Ended Ended Ended Ended
April 30, April 30, April 30, April 30, April 30, April 30,
Class R Shares 1998 1997 1998 1997 1998 1997
Shares sold 1,294,447 648,055 2,347,730 1,490,755 1,357,019 1,058,741
Shares issued to shareholders in
payment of distributions declared 35,958 36,491 530,956 290,990 51,264 6,849
Shares redeemed (1,177,844) (2,679,358) (1,591,271) (1,352,718) (482,797) (262,516)
Net change resulting from
Class R Share transactions 152,561 (1,994,812) 1,287,415 429,027 925,486 803,074
</TABLE>
(4) Investment Advisory Fee and Other Transactions with Affiliates
Investment Advisory Fee
Riggs Investment Management Corp., the Trust's investment adviser (the
"Adviser"), receives for its services an annual investment advisory fee based on
a percentage of each Fund's average daily net assets (see below). The Adviser
may voluntarily choose to waive a portion of its fee. The Adviser can modify or
terminate this voluntary waiver at any time at its sole discretion.
Fund Annual Rate
Treasury Fund 0.50%
Prime Fund 0.50%
U.S. Government Securities Fund 0.75%
Stock Fund 0.75%
Small Company Fund 0.80%
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
will 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 expenses 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 will pay FAS 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.
Riggs Funds
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 year ended April 30, 1998, the
following amounts were paid pursuant to this agreement:
<TABLE>
<CAPTION>
Organizational
Expenses Paid
Organizational for the Year Ended
Fund Effective Date Expenses April 30, 1998
<S> <C> <C> <C>
Small Company Fund February 6, 1995 $22,693 $6,303
</TABLE>
General
Certain of the Officers and Trustees of the Trust are Officers and Directors or
Trustees of the above companies.
(5) Investment Transactions
Purchases and sales of investments, excluding short-term obligations, for the
year ended April 30, 1998, were as follows:
<TABLE>
<CAPTION>
Fund Purchases Sales
<S> <C> <C>
U.S. Government Securities Fund $57,990,235 $54,566,270
Stock Fund 90,676,079 95,356,426
Small Company Fund 49,309,078 43,149,191
</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 these steps will be
sufficient to avoid any adverse impact to the funds.
REPORT OF ERNST & YOUNG LLP, INDEPENDENT AUDITORS
To the Board of Trustees and Shareholders of
RIGGS FUNDS:
(formerly, RIMCOMonument Funds)
We have audited the accompanying statements of assets and liabilities, including
the portfolio of investments, of Riggs Funds (comprising respectively, Riggs
U.S. Treasury Money Market Fund, Riggs Prime Money Market Fund, Riggs U.S.
Government Securities Fund (formerly, RIMCO Monument Bond Fund), Riggs Stock
Fund, and Riggs Small Company Stock Fund (formerly, RIMCO Monument Small
Capitalization Equity Fund)), as of April 30, 1998, and the related statements
of operations for the year then ended, the statements of changes in net assets
for each of the two years in the period then ended, and the financial highlights
for each of the periods then ended. These financial statements and financial
highlights are the responsibility of the Fund's management. Our responsibility
is to express an opinion on these financial statements and financial highlights
based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements and financial
highlights are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements. Our procedures included confirmation of securities owned as of April
30, 1998, by correspondence with the custodian and broker or other appropriate
auditing procedures where replies from brokers were not received. An audit also
includes assessing the accounting principles used and significant estimates made
by management, as well as evaluating the overall financial statement
presentation. We believe that our audits provide a reasonable basis for our
opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of each
of therespective portfolios constituting Riggs Funds, as indicated above, at
April 30, 1998, the results of their operations for the year then ended, changes
in theirnet assets for each of the two years in the period then ended, and
financial highlights for each of the periods then ended, in conformity with
generally accepted accounting principles.
ERNST & YOUNG LLP
Pittsburgh, Pennsylvania
June 22, 1998
TRUSTEES
John F. Donahue
Thomas G. Bigley
John T. Conroy, Jr.
Nicholas P. Constantakis
William J. Copeland
James E. Dowd
Lawrence D. Ellis, M.D.
Edward L. Flaherty, Jr.
Edward C. Gonzales
Peter E. Madden
John E. Murray, Jr.
Wesley W. Posvar
Marjorie P. Smuts
OFFICERS
John F. Donahue
Chairman
Edward C. Gonzales
President and Treasurer
J. Christopher Donahue
Executive Vice President
John W. McGonigle
Executive Vice President and Secretary
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.Egovernment, 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 seeks 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.
Cusip 76656A 104 Cusip 76656A 203 Cusip 76656A 302 Cusip 76656A 500 Cusip 76656A
609 Cusip 76656A 807 Cusip 76656A 401 2052603 (6/98)
APPENDIX
A. The graphic presentation here displayed consists of a line graph. The
corresponding components of the line graph are listed in the upper left quadrant
of the graph. The Class R Shares of Riggs U.S. Government Securities Fund (the
"Fund"), based on a 3.50% sales load (and a 4.75% sales load effective
12/18/95), are represented by a solid line. The Lehman Brothers
Government/Corporate Total Index (the "LBGCTI") is represented by a broken line.
The line graph is a visual representation of a comparison of change in value of
a $10,000 hypothetical investment in the Class R Shares of the Fund and the
LBGCTI. The "x" axis reflects computation periods from 5/11/92 to 4/30/98. The
"y" axis reflects the cost of the investment. The right margin reflects the
ending value of the hypothetical investment in the Fund's Class R Shares, based
on a 3.50% sales load (and a 4.75% sales load effective 12/18/95), as compared
to the LBGCTI. The ending values were $14,518 and $15,986, respectively.
B. The graphic presentation here displayed consists of a line graph. The
corresponding components of the line graph are listed in the upper left quadrant
of the graph. The Class R Shares of Riggs Stock Fund (the "Fund"), based on a
3.50% sales load (and a 5.75% sales load effective 12/18/95), are represented by
a solid line. The Standard & Poor's 500 Index (the "S&P 500") is represented by
a broken line. The line graph is a visual representation of a comparison of
change in value of a $10,000 hypothetical investment in the Class R Shares of
the Fund and the S&P 500. The "x" axis reflects computation periods from 5/11/92
to 4/30/98. The "y" axis reflects the cost of the investment. The right margin
reflects the ending value of the hypothetical investment in the Fund's Class R
Shares, based on a 3.50% sales load (and a 5.75% sales load effective 12/18/95),
as compared to the S&P 500. The ending values were $29,466 and $31,014,
respectively.
C. The graphic presentation here displayed consists of a line graph. The
corresponding components of the line graph are listed in the upper left quadrant
of the graph. The Class R Shares of Riggs Small Company Stock Fund (the "Fund"),
based on a 3.50% sales load (and a 5.75% sales load effective 12/18/95), are
represented by a solid line. The Russell 2000 Index (the "Russell 2000") is
represented by a broken line. The line graph is a visual representation of a
comparison of change in value of a $10,000 hypothetical investment in the Class
R Shares of the Fund and the Russell 2000. The "x" axis reflects computation
periods from 2/27/95 to 4/30/98. The "y" axis reflects the cost of the
investment. The right margin reflects the ending value of the hypothetical
investment in the Fund's Class R Shares, based on a 3.50% sales load (and a
5.75% sales load effective 12/18/95), as compared to the Russell 2000. The
ending values were $24,020 and $19,700, respectively.
