<PAGE>
THESE FUNDS ARE NEITHER INSURED NOR
GUARANTEED BY THE U.S. GOVERNMENT, THE
FEDERAL RESERVE BOARD OR ANY OTHER
GOVERNMENTAL AGENCY OR INSURER.
FINANCIAL
INVESTMENT ADVISER [GRAPHIC] INVESTORS
GE Investment TRUST
Management Incorporated
3003 Summer Street
P.O. Box 7900
Stamford, Connecticut 06905
ADMINISTRATOR, DISTRIBUTOR,
TRANSFER AGENT &
FUND ACCOUNTANT
ALPS Mutual Funds Services, Inc.
370 Seventeenth Street
Suite 3100
Denver, Colorado 80202
LEGAL COUNSEL ANNUAL REPORT
Davis, Graham & Stubbs LLP
370 Seventeenth Street
Suite 4700
Denver, CO 80202
INDEPENDENT AUDITORS APRIL 30, 1998
Deloitte & Touche LLP
555 Seventeenth Street
Suite 3600
Denver, Colorado 80202
CUSTODIAN
State Street Bank and Trust
Company of Connecticut N.A.
750 Main Street
Suite 1114
Hartford, Connecticut 06103
SUB-CUSTODIAN
State Street Bank & Trust Company
1776 Heritage Drive
North Quincy, Massachusetts 02171
MUST BE ACCOMPANIED OR PRECEDED BY
A CURRENT PROSPECTUS.
FOR MORE INFORMATION, PLEASE CALL
1-800-298-3442
GE INVESTMENTS GE INVESTMENTS
- ----------------------------------- -----------------------------------
THE INVESTMENT MANAGEMENT ARM OF GE THE INVESTMENT MANAGEMENT ARM OF GE
INVESTMENT ADVISOR INVESTMENT ADVISOR
ALPS MUTUAL FUNDS SERVICES
- --------------------------
SPONSOR AND DISTRIBUTOR
<PAGE>
LETTER FROM THE TRUST-----------------------------------------------------------
Dear Shareholders:
We are pleased to present for you the annual report for the U.S. Treasury
Money Market Fund and the U.S. Government Money Market Fund of Financial
Investors Trust.
During the Funds' fiscal year ended April 30, 1998, the domestic market has
shown consistent growth led by low unemployment, strong consumer spending and
strong housing starts. The Federal Reserve has now maintained the current
monetary policy of 5.50% for overnight funds for over a year. Restraint shown
by the Federal Reserve has been due to low inflation, decreases in manufacturing
and a widening of the trade deficit. While CPI and PPI have been relatively
flat, and the increases in the trade deficit can be attributed to the Asian
crisis, concern over the next few months centers on whether this trend will
continue. The Federal Reserve Chairman, Alan Greenspan, has been a notorious
inflation fighter and without evidence of inflation, rates should remain at this
target level of 5.50% until mid-summer. Inflation indicators will be monitored
closely and any trend up in these indicators will likely cause the Fed to raise
rates.
While short rates have dropped 21 basis points since our last report in
October 1997, the 6 month Treasury Bill dropped only 8 basis points and the 1
year Treasury actually rose 3 basis points. Since October, the 30 year Treasury
Bond dropped an additional 20 basis points to a 5.95% yield. Our strategy will
be to adjust the current maturity of each Fund to around 50 days until
mid-summer and then shorten the days relative to the IBC/Donoghue average, which
is currently at 45 days. While we have been in a neutral policy stance for the
past year, market indicators are forcing a bias towards tightening rates. This
bias should only exist for short rates, as the yield curve should continue to
flatten with the Fed target between 5.50% to 5.75% and the long bond trading
between 5.90% and 6.00%. We will monitor this situation closely and will
shorten duration as necessary.
We are also pleased to report that a new money market fund is scheduled to
join the Financial Investors Trust family of mutual funds. The Prime Fund
intends to have the ability to invest in, among other things, Commercial Paper
and Banker's Acceptances, as well as obligations of the U.S. government.
We appreciate your support of the Funds and as always are pleased to hear
from you. You can be assured that we will be responsive and courteous to any
requests or suggestions.
Sincerely,
/s/ W. Robert Alexander /s/ Donald J. Duncan
W. Robert Alexander Donald J. Duncan
Chairman Senior Investment Manager
Financial Investors Trust GE Investment Management Incorporated
[GRAPHIC] ------------------------------------------------------------------- 1
<PAGE>
DELOITTE &
TOUCHE LLP
- ------------ ------------------------------------------------------
[GRAPHIC] Suite 3600 Telephone: (303) 292-5400
555 Seventeenth Street Facsimile: (303) 312-4000
Denver, Colorado 80202-3942
INDEPENDENT AUDITORS' REPORT
TO THE BOARD OF TRUSTEES AND SHAREHOLDERS
FINANCIAL INVESTORS TRUST:
We have audited the accompanying statements of assets and liabilities,
including the statements of investments, of the U.S. Treasury Money Market Fund
and the U.S. Government Money Market Fund of Financial Investors Trust as of
April 30, 1998, the related statements of operations for the year then ended and
the statements of changes in net assets and financial highlights for each of the
periods indicated. These financial statements and financial highlights are the
responsibility of the Trust's Management. Our responsibility is to express an
opinion on these financial statements and financial highlights based on our
audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements and financial
highlights are free of material misstatement. An audit also includes examining
on a test basis, evidence supporting the amounts and disclosures in the
financial statements. Our procedures included confirmation of securities owned
at April 30, 1998, by correspondence with the custodian. 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, such financial statements and financial highlights present
fairly, in all material respects, the financial position of the U.S. Treasury
Money Market Fund and the U.S. Government Money Market Fund of Financial
Investors Trust as of April 30, 1998, and the results of their operations, the
changes in their net assets and financial highlights for each of the periods
indicated in conformity with generally accepted accounting principles.
/s/ DELOITTE & TOUCHE LLP
DELOITTE & TOUCHE LLP
DENVER, COLORADO
JUNE 2, 1998
- ---------------
DELOITTE TOUCHE
TOHMATSU
INTERNATIONAL
- ---------------
2 ------------------------------------------------------------------- [GRAPHIC]
<PAGE>
U.S. TREASURY MONEY MARKET FUND ------------------------------------------------
STATEMENT OF ASSETS AND LIABILITIES
APRIL 30, 1998
ASSETS
Investments, at amortized cost (which approximates market value)
- see accompanying statement $137,188,912
Interest receivable 1,494,107
Organizational costs, net of accumulated amortization 73,398
Prepaid and other assets 49,127
- --------------------------------------------------------------------------------
Total Assets 138,805,544
- --------------------------------------------------------------------------------
LIABILITIES
Dividends payable 576,147
Accrued investment advisory fee 5,652
Accrued administration fee 28,717
Other payables 26,084
- --------------------------------------------------------------------------------
Total Liabilities 636,600
- --------------------------------------------------------------------------------
NET ASSETS $138,168,944
- --------------------------------------------------------------------------------
COMPOSITION OF NET ASSETS
Paid-in capital $138,196,581
Accumulated net realized loss (27,637)
- --------------------------------------------------------------------------------
NET ASSETS $138,168,944
- --------------------------------------------------------------------------------
Shares of beneficial interest outstanding 138,196,581
- --------------------------------------------------------------------------------
Net asset value and redemption value per share $1.00
- --------------------------------------------------------------------------------
See notes to financial statements.
[GRAPHIC] ------------------------------------------------------------------- 3
<PAGE>
U.S. TREASURY MONEY MARKET FUND ------------------------------------------------
STATEMENT OF INVESTMENTS
APRIL 30, 1998
Face Value Market Value*
- ---------- -------------
U.S. TREASURY OBLIGATIONS 52.58%
- -------------------------------------------------------------------------------
U.S. Treasury Notes:
$8,000,000 6.13%, 5/15/98 $8,002,055
5,000,000 9.00%, 5/15/98 5,006,913
10,000,000 6.25%, 6/30/98 10,015,534
7,500,000 8.25%, 7/15/98 7,542,029
5,000,000 5.25%, 7/31/98 4,997,949
7,000,000 6.25%, 7/31/98 7,015,442
7,000,000 6.13%, 8/31/98 7,015,908
5,000,000 6.00%, 9/30/98 5,012,030
13,000,000 5.63%, 11/30/98 13,010,405
5,000,000 6.38%, 1/15/99 5,027,820
-----------
TOTAL U.S. TREASURY OBLIGATIONS
(Cost $72,646,085) 72,646,085
-----------
<TABLE>
<CAPTION>
REPURCHASE AGREEMENTS
COLLATERALIZED BY U.S. GOVERNMENT
OBLIGATIONS 46.71% Collateral Value
- ------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
6,900,000 Repurchase agreement with Chase Securities Inc.,
5.53%, dated 4/30/98 and maturing 5/1/98,
collateralized by U.S. Treasury Note, 5.88% due
11/30/01 6,901,060 $7,039,205
6,900,000 Repurchase agreement with Deutsche Bank Corp.,
5.49%, dated 4/30/98 and maturing 5/1/98,
collateralized by U.S. Treasury Bill, due 8/20/98
and U.S. Treasury Bond, 13.88% due 5/15/11 6,901,052 7,038,760
6,900,000 Repurchase agreement with J.P. Morgan & Co. Inc.,
5.51%, dated 4/30/98 and maturing 5/1/98,
collateralized by U.S. Treasury Note, 7.13%
due 2/29/00 6,901,056 7,038,760
6,900,000 Repurchase agreement with Merrill Lynch Inc.,
5.45%, dated 4/30/98 and maturing 5/1/98,
collateralized by U.S. Treasury Notes, 9.25%
due 8/15/98, and 6.00% due 6/30/99 6,901,045 7,038,155
</TABLE>
4 ------------------------------------------------------------------- [GRAPHIC]
<PAGE>
U.S. TREASURY MONEY MARKET FUND ------------------------------------------------
STATEMENT OF INVESTMENTS
APRIL 30, 1998 (CONTINUED)
<TABLE>
<CAPTION>
Face Value Market Value* Collateral Value
- ---------- --------------------------------
REPURCHASE AGREEMENTS
COLLATERALIZED BY U.S. GOVERNMENT
OBLIGATIONS (CONTINUED)
- -----------------------------------------------------------------------------------------------
<S> <C> <C> <C>
$6,900,000 Repurchase agreement with Morgan Stanley Inc.,
5.51%, dated 4/30/98 and maturing 5/1/98,
collateralized by U.S. Treasury Bill, due 6/18/98
and U.S. Treasury Note, 5.50% due 12/31/00 $6,901,056 $7,129,717
23,133,000 Repurchase agreement with State Street Bank
Corp., 5.45%, dated 4/30/98 and maturing
5/1/98, collateralized by U.S. Treasury Note,
6.38% due 7/15/99 23,136,502 24,023,820
6,900,000 Repurchase agreement with UBS Securities Inc.,
5.51%, dated 4/30/98 and maturing 5/1/98,
collateralized by U.S. Treasury Notes, 5.00% -
9.13% due 5/31/98 - 5/15/06 and U.S. Treasury
Bonds, 6.00% - 13.25% due 2/15/07 - 2/15/27 6,901,056 7,039,639
-------------- ----------------
TOTAL REPURCHASE AGREEMENTS
(Cost $64,542,827) 64,542,827 66,348,056
-------------- ----------------
TOTAL INVESTMENTS
(Cost $137,188,912) 99.29% 137,188,912
Other Assets in Excess of Liabilities 0.71% 980,032
-----------------------------
NET ASSETS 100.00% $138,168,944
-----------------------------
-----------------------------
</TABLE>
*See note 1 to financial statements.
[GRAPHIC] ------------------------------------------------------------------- 5
<PAGE>
U.S. TREASURY MONEY MARKET FUND ------------------------------------------------
STATEMENT OF OPERATIONS
FOR THE YEAR ENDED APRIL 30, 1998
INVESTMENT INCOME $8,599,436
- --------------------------------------------------------------------------------
EXPENSES
Investment advisory fee (Note 3) 78,117
Administration services* (Note 3) 665,343
Legal 18,987
Amortization of organization costs 67,916
Insurance 14,945
Registration 6,667
Other 10,641
- --------------------------------------------------------------------------------
Total Expenses 862,616
- --------------------------------------------------------------------------------
Expenses waived by administrator (349,614)
- --------------------------------------------------------------------------------
Net Expenses 513,002
- --------------------------------------------------------------------------------
NET INVESTMENT INCOME 8,086,434
- --------------------------------------------------------------------------------
NET REALIZED GAIN ON INVESTMENTS 6,180
- --------------------------------------------------------------------------------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $8,092,614
- --------------------------------------------------------------------------------
*Administration services include: fund accounting, daily pricing, custody,
licensing and registration, shareholder servicing, transfer agency, fund
ratings, audit, training and printing.
See notes to financial statements.
6 ------------------------------------------------------------------- [GRAPHIC]
<PAGE>
U.S. TREASURY MONEY MARKET FUND ------------------------------------------------
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
For the For the
Year Ended Year Ended
April 30, 1998 April 30, 1997
--------------------------------
<S> <C> <C>
OPERATIONS
Net investment income $8,086,434 $13,275,525
Net realized gain on investments 6,180 0
- -----------------------------------------------------------------------------------------
Net increase in net assets resulting from operations 8,092,614 13,275,525
DISTRIBUTIONS
Dividends to shareholders from net investment income (8,086,434) (13,275,525)
- -----------------------------------------------------------------------------------------
BENEFICIAL INTEREST TRANSACTIONS
Shares sold 597,251,125 762,297,270
Dividends reinvested 7,918,215 12,941,419
Shares redeemed (634,698,326) (923,910,706)
- -----------------------------------------------------------------------------------------
Change in net assets derived from beneficial interest
transactions (29,528,986) (148,672,017)
- -----------------------------------------------------------------------------------------
NET DECREASE IN NET ASSETS (29,522,806) (148,672,017)
NET ASSETS:
Beginning of year 167,691,750 316,363,767
- -----------------------------------------------------------------------------------------
End of year $138,168,944 $167,691,750
- -----------------------------------------------------------------------------------------
</TABLE>
See notes to financial statements.
[GRAPHIC] ------------------------------------------------------------------- 7
<PAGE>
U.S. TREASURY MONEY MARKET FUND ------------------------------------------------
FINANCIAL HIGHLIGHTS
Selected data for a share of beneficial
interest outstanding throughout the period indicated(1):
<TABLE>
<CAPTION>
For the Year Ended April 30,
1998 1997 1996 1995 (2)
-----------------------------------------------
<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 0.05 0.05 0.05 0.04
- ---------------------------------------------------------------------------------------
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS
Dividends from net investment income (0.05) (0.05) (0.05) (0.04)
- ---------------------------------------------------------------------------------------
Net asset value - end of period $1.00 $1.00 $1.00 $1.00
- ---------------------------------------------------------------------------------------
Total return 5.30% 5.15% 5.44% 4.71%(3)
- ---------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000) $138,169 $167,692 $316,364 $109,055
- ---------------------------------------------------------------------------------------
Ratio of expenses to average net assets 0.33% 0.30% 0.30% 0.50%(3)
- ---------------------------------------------------------------------------------------
Ratio of net investment income to
average net assets 5.18% 5.02% 5.36% 4.87%(3)
- ---------------------------------------------------------------------------------------
Ratio of expenses to average net assets
without fee waivers 0.55% 0.67% 0.71% 1.32%(3)
- ---------------------------------------------------------------------------------------
Ratio of net investment income to
average net assets without fee waivers 4.96% 4.65% 4.95% 4.05%(3)
- ---------------------------------------------------------------------------------------
</TABLE>
(1) The financial highlights prior to March 24, 1997 reflect the operations of
the Fund while the Fund's investment adviser was FGIC Advisors, Inc. GEIM
was approved as the Fund's investmentadviser at a special meeting of the
shareholders of the Fund on March 21, 1997.
(2) Operations commenced on May 25, 1994.
(3) Annualized
See notes to financial statements.
8 ------------------------------------------------------------------- [GRAPHIC]
<PAGE>
U.S GOVERNMENT MONEY MARKET FUND -----------------------------------------------
STATEMENT OF ASSETS AND LIABILITIES
APRIL 30, 1998
ASSETS
Investments, at amortized cost (which approximates market value)
- see accompanying statement $150,404,340
Interest receivable 406,467
Organizational costs, net of accumulated amortization 3,520
Prepaid and other assets 89,379
- --------------------------------------------------------------------------------
Total Assets 150,903,706
- --------------------------------------------------------------------------------
LIABILITIES
Dividends payable 646,814
Accrued investment advisory fee 4,870
Other payables 29,955
- --------------------------------------------------------------------------------
Total Liabilities 681,639
- --------------------------------------------------------------------------------
NET ASSETS $150,222,067
- --------------------------------------------------------------------------------
COMPOSITION OF NET ASSETS
Paid-in capital $150,386,485
Accumulated net realized loss (164,418)
- --------------------------------------------------------------------------------
NET ASSETS $150,222,067
- --------------------------------------------------------------------------------
Shares of beneficial interest outstanding 150,235,196
- --------------------------------------------------------------------------------
Net asset value and redemption value per share $1.00
- --------------------------------------------------------------------------------
See notes to financial statements.
[GRAPHIC] ------------------------------------------------------------------- 9
<PAGE>
U.S GOVERNMENT MONEY MARKET FUND -----------------------------------------------
STATEMENT OF INVESTMENTS
APRIL 30, 1998
Face Value Market Value*
- ---------- -------------
U.S. TREASURY OBLIGATIONS 10.00%
- --------------------------------------------------------------------------------
U.S. Treasury Notes:
$2,500,000 8.25%, 7/15/98 $2,514,010
7,500,000 5.25%, 7/31/98 7,497,038
5,000,000 5.63%, 11/31/98 5,003,795
-------------
TOTAL U.S TREASURY OBLIGATIONS
(Cost $15,014,843) 15,014,843
-------------
U.S. GOVERNMENT AGENCY
OBLIGATIONS 58.12%
- --------------------------------------------------------------------------------
Farmer Mac
6,000,000 5.41%, 10/9/98 5,854,922
Federal Farm Credit Bank
5,000,000 5.25%, 8/5/98 4,929,163
7,000,000 5.65%, 1/4/99 7,002,271
Federal Home Loan Bank
20,000,000 5.43%, 5/1/98 20,000,000
6,000,000 5.35%, 5/8/98 5,993,679
7,000,000 5.29%, 7/29/98 6,907,267
Federal Home Loan Mortgage Corp.
6,000,000 5.42%, 5/29/98 5,974,699
6,000,000 5.43%, 6/12/98 5,962,014
Federal National Mortgage Association
7,000,000 5.29%, 6/29/98 6,938,554
5,000,000 5.40%, 7/17/98 4,942,129
8,000,000 5.42%, 7/27/98 7,895,150
5,000,000 5.41%, 8/27/98 4,911,309
-------------
TOTAL U.S. GOVERNMENT AGENCY OBLIGATIONS
(Cost $87,311,157) 87,311,157
-------------
10 ------------------------------------------------------------------ [GRAPHIC]
<PAGE>
U.S GOVERNMENT MONEY MARKET FUND -----------------------------------------------
STATEMENT OF INVESTMENTS
APRIL 30, 1998 (CONTINUED)
<TABLE>
<CAPTION>
Face Value Market Value* Collateral Value
- ---------- --------------------------------
REPURCHASE AGREEMENTS
COLLATERALIZED BY U.S.
GOVERNMENT OBLIGATIONS 32.00%
- --------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
$7,500,000 Repurchase agreement with Chase Securities
Inc., 5.53%, dated 4/30/98 and maturing
5/1/98, collateralized by U.S. Treasury Note,
5.88% due 11/30/01 $7,501,152 $7,650,193
7,500,000 Repurchase agreement with Deutsche Bank Corp.,
5.49%, dated 4/30/98 and maturing 5/1/98,
collateralized by U.S. Treasury Notes, 4.75%
due 8/31/98, 4.75% due 9/30/98 and 5.75%
due 11/15/00 7,501,144 7,650,810
7,500,000 Repurchase agreement with J.P. Morgan & Co., Inc.,
5.51%, dated 4/30/98 and maturing 5/1/98,
collateralized by U.S. Treasury Note, 7.13% due
2/29/00 7,501,148 7,650,961
7,500,000 Repurchase agreement with Merrill Lynch Inc.,
5.45%, dated 4/30/98 and maturing 5/1/98,
collateralized by U.S. Treasury Note, 6.00% due
6/30/99 7,501,135 7,654,505
7,500,000 Repurchase agreement with Morgan Stanley Inc.,
5.51%, dated 4/30/98 and maturing 5/1/98,
collateralized by U.S. Treasury Bill, due 6/18/98
and U.S. Treasury Note, 7.75% due 1/31/00 7,501,148 7,745,681
3,071,000 Repurchase agreement with State Street Bank
Corp., 5.45%, dated 4/30/98 and maturing
5/1/98, collateralized by U.S. Treasury Notes,
4.75% due 10/31/98 and 5.88% due 7/31/99 3,071,465 3,174,711
7,500,000 Repurchase agreement with UBS Securities Inc.,
5.51%, dated 4/30/98 and maturing 05/1/98,
collateralized by SLMA, 6.00% due 6/17/99 7,501,148 7,651,769
-------------------------------
</TABLE>
[GRAPHIC] ------------------------------------------------------------------ 11
<PAGE>
U.S GOVERNMENT MONEY MARKET FUND -----------------------------------------------
STATEMENT OF INVESTMENTS
APRIL 30, 1998 (CONTINUED)
Market Value* Collateral Value
--------------------------------
TOTAL REPURCHASE AGREEMENTS
(Cost $48,078,340) $48,078,340 $49,178,630
---------------------------------
TOTAL INVESTMENTS
(Cost $150,404,340) 100.12% 150,404,340
Liabilities in Excess of Other Assets (0.12%) (182,273)
----------------------
NET ASSETS 100.00% $150,222,067
----------------------
----------------------
*See note 1 to financial statements.
12 ------------------------------------------------------------------ [GRAPHIC]
<PAGE>
U.S GOVERNMENT MONEY MARKET FUND -----------------------------------------------
STATEMENT OF OPERATIONS
FOR THE YEAR ENDED APRIL 30, 1998
INVESTMENT INCOME $7,333,087
- --------------------------------------------------------------------------------
EXPENSES
Investment advisory fee (Note 3) 52,818
Administration services* (Note 3) 294,083
Legal 28,288
Amortization of organization costs 3,574
Insurance 10,972
Registration 9,675
Other 8,191
- --------------------------------------------------------------------------------
Total Expenses 407,601
- --------------------------------------------------------------------------------
Expenses waived by administrator (143,513)
- --------------------------------------------------------------------------------
Net Expenses 264,088
- --------------------------------------------------------------------------------
NET INVESTMENT INCOME 7,068,999
- --------------------------------------------------------------------------------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $7,068,999
- --------------------------------------------------------------------------------
*Administration services include: fund accounting, daily pricing, custody,
licensing and registration, shareholder servicing, transfer agency, fund
ratings, audit, training and printing.
See notes to financial statements.
[GRAPHIC] ------------------------------------------------------------------ 13
<PAGE>
U.S GOVERNMENT MONEY MARKET FUND -----------------------------------------------
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
For the For the
Year Ended Year Ended
April 30, 1998 April 30, 1997
--------------------------------
<S> <C> <C>
OPERATIONS
Net investment income $7,068,999 $3,710,825
Net realized gain on investments 0 22,252
Net change in unrealized appreciation/depreciation 0 (40,458)
- -----------------------------------------------------------------------------------------
Net increase in net assets resulting from operations 7,068,999 3,692,619
DISTRIBUTIONS
Dividends to shareholders from net investment income (7,068,999) (3,710,825)
- -----------------------------------------------------------------------------------------
BENEFICIAL INTEREST TRANSACTIONS
Shares sold 438,749,225 211,760,515
Dividends reinvested 6,088,821 2,781,667
Shares redeemed (382,031,631) (158,190,472)
- -----------------------------------------------------------------------------------------
Change in net assets derived from beneficial interest
transactions 62,806,415 56,351,710
- -----------------------------------------------------------------------------------------
NET INCREASE IN NET ASSETS 62,806,415 56,333,504
NET ASSETS:
Beginning of year 87,415,652 31,082,148
- -----------------------------------------------------------------------------------------
End of year $150,222,067 $87,415,652
- -----------------------------------------------------------------------------------------
</TABLE>
See notes to financial statements.
14 ------------------------------------------------------------------- [GRAPHIC]
<PAGE>
U.S GOVERNMENT MONEY MARKET FUND -----------------------------------------------
FINANCIAL HIGHLIGHTS
Selected data for a share of beneficial interest
outstanding throughout the period indicated(1):
<TABLE>
<CAPTION>
For the Year Ended April 30,
1998 1997 1996 1995 (2)
-----------------------------------------------
<S> <C> <C> <C> <C>
Net asset value - beginning of period $1.00 $9.97 $9.97 $10.00
- ---------------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS
Net investment income 0.05 0.14 0.55 0.44
Net realized and unrealized gain (loss)
on investments 0.00 0.00 0.00 (0.03)
- ---------------------------------------------------------------------------------------
Total income from investment operations 0.05 (0.14) 0.55 0.41
- ---------------------------------------------------------------------------------------
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS
Dividends from net investment income (0.05) (0.14) (0.55) (0.44)
Stock Split (Note 4) 0.00 (8.97) 0.00 0.00
- ---------------------------------------------------------------------------------------
Total dividends and distributions to
shareholders (0.05) (9.11) (0.55) (0.44)
- ---------------------------------------------------------------------------------------
Net asset value - end of period $1.00 $1.00 $9.97 $9.97
- ---------------------------------------------------------------------------------------
Total return 5.48% 5.23% 5.65% 4.73%(3)
- ---------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000) $150,222 $87,416 $31,082 $41,893
- ---------------------------------------------------------------------------------------
Ratio of expenses to average net assets 0.20% 0.23% 0.60% 0.45%(3)
- ---------------------------------------------------------------------------------------
Ratio of net investment income to
average net assets 5.35% 5.13% 5.38% 5.23%(3)
- ---------------------------------------------------------------------------------------
Ratio of expenses to average net assets
without fee waivers 0.31% 0.39% 0.85% 0.65%(3)
- ---------------------------------------------------------------------------------------
Ratio of net investment income to
average net assets without fee waivers 5.24% 4.97% 5.12% 5.03%(3)
- ---------------------------------------------------------------------------------------
</TABLE>
(1) The financial highlights prior to July 10, 1996 reflect the operations of
the Fund as the Short-Term U.S. Government Income Fund when it was not a
money market fund and had different investment policies and expenses, and a
fluctuating net asset value not maintained at $1.00 per share. The Fund
changed to a money market fund on July 10, 1996 following a Special Meeting
of the Fund's shareholders on June 27, 1996. The financial highlights prior
to March 24, 1997 also reflect the operations of the Fund while the Fund's
investment adviser was FGIC Advisors, Inc. GEIM was approved as the Fund's
investment adviser at a Special Meeting of the shareholders of the Fund on
March 21, 1997.
(2) Operations commenced on June 7, 1994.
(3) Annualized.
See notes to financial statements.
[GRAPHIC] ------------------------------------------------------------------ 15
<PAGE>
NOTES TO FINANCIAL STATEMENTS --------------------------------------------------
1. SIGNIFICANT ACCOUNTING POLICIES
Financial Investors Trust, a Delaware business trust, is registered under
the Investment Company Act of 1940, as amended, as an open-end management
investment company. The financial statements included herein relate to the U.S.
Treasury Money Market Fund and the U.S. Government Money Market Fund (the
"Funds"). The financial statements of the remaining portfolios of the Trust are
presented separately.
The following is a summary of significant accounting policies consistently
followed by the Funds in the preparation of their financial statements. The
policies are in conformity with generally accepted accounting principles.
INVESTMENT VALUATION: The U.S. Treasury Money Market Fund and the U.S.
Government Money Market Fund value their securities on the basis of amortized
cost which approximates market value.
REPURCHASE AGREEMENTS: The Funds' custodian takes possession of the
collateral pledged for investments in repurchase agreements. The underlying
collateral is valued daily on a mark-to-market basis to ensure that value,
including accrued interest, is at least 102% of the repurchase price. In the
event of default on the obligation to repurchase, the Funds have the right to
liquidate the collateral and apply the proceeds in satisfaction of the
obligation. Under certain circumstances, in the event of default by or
bankruptcy of the other party to the agreement, realization and/or retention of
the collateral may be subject to legal proceedings.
FEDERAL INCOME TAXES: It is the Funds' policy to continue to comply with
provisions of the Internal Revenue Code applicable to regulated investment
companies and to distribute all of its taxable income to shareholders.
Therefore, no Federal Income Tax provisions are required.
ORGANIZATION COSTS: The Funds have deferred certain organization costs.
Such costs are being amortized over a 60 month period from the commencement of
operations. In the event that all, or part of the initial investment in shares
of the Funds are withdrawn during the amortization period, the redemption
proceeds will be reduced by the proportionate amount of the unamortized
organization costs represented by the ratio that the number of shares redeemed
bears to the number of initial shares outstanding at the time of each
redemption.
OTHER: Investment transactions are accounted for on the date the
investments are purchased or sold (trade date). Dividends from net investment
income are declared daily and paid monthly. Distributions of accumulated net
realized gains, if any, are declared at least once a year. Realized gains and
losses from investment transactions are reported on an identified cost basis
which is the same basis the Funds use for Federal Income Tax Purposes.
The preparation of financial statements in conformity with generally
accepted accounting principles requires management to make estimates and
assumptions that affect the reported amounts of assets and liabilities and
disclosure of contingent assets and liabilities at the date of the financial
statements and the reported amounts of revenues and expenses during the
reporting period. Actual results could differ from these estimates.
16 ------------------------------------------------------------------- [GRAPHIC]
<PAGE>
NOTES TO FINANCIAL STATEMENTS (CONTINUED) --------------------------------------
2. SHARES OF BENEFICIAL INTEREST
On April 30, 1998, there was an unlimited number of no par value shares
of beneficial interest authorized. Transactions in shares of beneficial
interest were as follows:
<TABLE>
<CAPTION>
- ---------------------------------------------------------------------------------------------------------
U.S. Treasury Money Market Fund U.S. Government Money Market Fund
-----------------------------------------------------------------------------------
For the Year Ended For the Year Ended For the Year Ended For the Year Ended
April 30, 1998 April 30, 1997 April 30, 1998 April 30, 1997
- ---------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Shares sold 597,251,125 762,297,270 438,749,225 209,836,616
- ---------------------------------------------------------------------------------------------------------
Shares reinvested 7,918,215 12,941,419 6,088,821 2,517,778
- ---------------------------------------------------------------------------------------------------------
Stock split (Note 4) - - - 27,832,061
- ---------------------------------------------------------------------------------------------------------
Shares redeemed 634,698,326 923,910,706 382,031,631 155,874,732
- ---------------------------------------------------------------------------------------------------------
Net increase
(decrease) (29,528,986) (148,672,017) 62,806,415 84,311,723
- ---------------------------------------------------------------------------------------------------------
</TABLE>
3. INVESTMENT ADVISORY FEES, ADMINISTRATION FEES AND OTHER RELATED
PARTY TRANSACTIONS
The Trust has entered into Investment Advisory Agreements with GE
Investment Management, Incorporated ("GEIM"). Pursuant to these advisory
agreements, GEIM is entitled to an advisory fee, computed daily and payable
monthly, based on the following fee schedule:
U.S Treasury U.S. Government
Average Net Assets Money Market Fund Money Market Fund
------------------ ----------------- -----------------
First $500 million 0.05% 0.04%
Next $500 million 0.075% 0.06%
Next $500 million 0.10% 0.08%
In excess of $1.5 billion 0.15% 0.08%
ALPS Mutual Funds Services, Inc. ("ALPS") serves as the Funds'
administrator. ALPS is entitled to receive a fee from each Fund for its
administrative services, computed daily and payable monthly, based on the
following fee schedule:
U.S. Treasury U.S. Government
Average Net Assets Money Market Fund* Money Market Fund*
------------------ ----------------- ------------------
First $500 million 0.26% 0.16%
Next $500 million 0.24% 0.14%
In excess of $1 billion 0.22% 0.12%
*Subject to a minimum monthly fee of $50,000 and $30,000 for the U.S. Treasury
Money Market Fund and U.S. Government Money Market Fund, respectively.
ALPS has agreed to voluntarily waive a portion of its fees so that the
total annual expenses of each Fund will not exceed the voluntary expense
limitations adopted by ALPS. Fee waivers by ALPS are voluntary and may be
terminated at any time.
[GRAPHIC] ------------------------------------------------------------------ 17
<PAGE>
NOTES TO FINANCIAL STATEMENTS (CONTINUED) --------------------------------------
On December 22, 1997, the Board of Trustees authorized the Trust to
reimburse ALPS for certain pre-paid registered shares which ALPS, pursuant to
Rule 24e-2 of the Investment Company Act of 1940, had registered and paid for on
behalf of the Trust in August, 1995. On December 23, 1997, ALPS was reimbursed
in the amount of $46,024 and $105,564 from the U.S. Treasury Money Market Fund
and U.S. Government Money Market Fund, respectively.
One shareholder of the U.S. Treasury Money Market Fund owned 13.0
percent of that Fund's outstanding shares at April 30, 1998. Two shareholders
of the U.S. Government Money Market Fund owned 16.0 percent and 14.1 percent of
that Fund's outstanding shares at April 30, 1998.
4. FUNDAMENTAL CHANGES
At a Special Meeting of the U.S. Government Money Market Fund (the
"Fund") (formerly the Short-Term U.S. Government Income Fund) held on June 27,
1996, shareholders of the Fund approved an amendment to a fundamental investment
restriction of the Fund to allow for the purchase of United States Government
agency and instrumentality obligations as well as repurchase agreements
collateralized to 102% by direct obligations of United States Government
agencies and instrumentalities. The shareholders also approved that the Fund
change from a non-money market fund to a money market fund and that the Fund
change its name to the U.S. Government Money Market Fund to reflect these
changes. After the close of business on July 9, 1996, the changes approved by
the shareholders of the Fund were implemented. As a money market fund, the Fund
seeks to maintain a net asset value of $1.00 for purposes of purchases and
redemptions. In order to bring the net asset value of the Fund to $1.00, the
Fund executed a stock split of 9.97 to 1 after the close of business on July 9,
1996.
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