<PAGE> 1
SEMI-ANNUAL REPORT
[ LOGO ]
LINDNER GOVERNMENT
MONEY MARKET FUND
------------
PERIOD ENDED
DECEMBER 31, 1996
--------------------
THE LINDNER FUNDS
--------
ADVISED BY RYBACK MANAGEMENT CORPORATION(SM)
LINDNER GOVERNMENT MONEY MARKET FUND
<PAGE> 2
STATEMENT OF ASSETS AND LIABILITIES
<TABLE>
<CAPTION>
(UNAUDITED) DECEMBER 31,
1996
<S> <C>
ASSETS
Investment securities, at value.......................... $42,227,750
Cash..................................................... 299,925
Interest receivable...................................... 309,321
Unamortized organizational expense (Note 2).............. 21,859
Other assets............................................. 3,841
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Total assets......................................... 42,862,696
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LIABILITIES
Accounts payable and other liabilities:
Fund shares redeemed................................... 2,169,112
Dividends.............................................. 88,580
Organizational expense................................. 22,779
Administrator fee...................................... 6,890
Management fee......................................... 5,168
Other.................................................. 13,586
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Total liabilities.................................... 2,306,115
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NET ASSETS............................................... $40,556,581
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NET ASSETS CONSIST OF:
Paid-in capital.......................................... $40,556,581
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SHARES OF BENEFICIAL INTEREST, $1.00 PAR VALUE UNLIMITED
SHARES AUTHORIZED, OUTSTANDING......................... 40,556,581
===========
NET ASSET VALUE PER SHARE................................ $ 1.00
===========
</TABLE>
STATEMENT OF OPERATIONS
<TABLE>
<CAPTION>
(UNAUDITED) PERIOD ENDED
DECEMBER 31,
1996<F1>
<S> <C>
INVESTMENT INCOME
Interest............................... $941,304
--------
EXPENSES:
Administrator fees (Note 3)............ 34,454
Management fees (Note 3)............... 25,841
Registration and regulatory fees....... 9,597
Transfer agent fees (Note 3)........... 3,552
Organizational expense (Note 2)........ 1,840
Custodian expense...................... 791
Other expenses......................... 2,096
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Total expenses....................... 78,171
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Fees paid indirectly (Note 4)...... (130)
NET EXPENSES....................... 78,041
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NET INVESTMENT INCOME.................. $863,263
========
<FN>
<F1> Operations commenced on July 6, 1996.
</TABLE>
<PAGE> 3
LINDNER GOVERNMENT MONEY MARKET FUND
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
(UNAUDITED) PERIOD ENDED
DECEMBER 31,
1996<F1>
<S> <C>
INCREASE IN NET ASSETS:
Net investment income............... $ 863,263
-----------
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income.......... (863,263)
-----------
FUND SHARES TRANSACTIONS:
Net increase in net assets resulting
from fund shares transactions
(Note 5)............................ 40,556,581
-----------
NET ASSETS:
TOTAL INCREASE........................ 40,556,581
Net Assets at the Beginning of the
Period.............................. 0
-----------
NET ASSETS AT THE END OF THE PERIOD... $40,556,581
===========
<FN>
<F1> Operations commenced on July 6, 1996.
</TABLE>
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
(UNAUDITED) PERIOD ENDED
DECEMBER 31,
1996<F1>
<S> <C>
PER SHARE OPERATING DATA:
Net asset value, beginning of period...... $ 1.00
Income from investment operations......... 0.02
Dividends to shareholders................. (0.02)
------
Net asset value, end of period............ $ 1.00
======
TOTAL RETURN, AT NET ASSET VALUE<F2>...... 2.50%
======
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in millions)... $ 40.5
Average net assets (in millions).......... $ 32.9
Ratios to average net assets:
Net investment income................... 2.62%
Expenses................................ 0.24%
<FN>
<F1> Operations commenced on July 6, 1996.
<F2> Assumes a hypothetical initial investment on the business day before the
first day of the fiscal period with all dividends reinvested in additional
shares on the reinvestment date, and redemption at the net asset value
calculated on the last business day of the fiscal period. Total returns
are not annualized for periods of less than one full year. Total returns
reflect changes in net investment income only.
</TABLE>
<PAGE> 4
LINDNER GOVERNMENT MONEY MARKET FUND
NOTES TO THE FINANCIAL STATEMENTS
(UNAUDITED) DECEMBER 31, 1996
1. Organization and Significant Accounting Policies
Lindner Investments, a Massachusetts business trust (the "Funds"), is
registered under the Investment Company Act of 1940, as amended, as an
open-end management investment company. Lindner Government Money Market Fund
(the "Fund") is a separate series of Lindner Investments which invests
primarily in United States government obligations. The Fund began operations
on July 6, 1996. The Fund's investment objective is to achieve a high level
of current income consistent with preservation of capital and liquidity by
investing in a portfolio of high-quality, short-term "Government Money
Market" instruments. The Fund's investment adviser is Ryback Management
Corporation (the Adviser).
The following is a summary of significant accounting policies followed by the
Fund.
Investment Valuation
Investment securities are valued using either the amortized cost method,
whereby investments purchased at discount or premium are valued by
amortizing the difference between the original purchase cost and maturity
value of the issue over the period to maturity, or at original cost. Both
methods approximate current value.
Investment Transactions
Investment transactions are accounted for on the date purchased or sold.
Realized gains and losses (if any) on investments are determined on a
first-in, first-out cost basis, which is the same basis used for federal
income tax purposes.
Investment Income
Interest income is recorded on the accrual basis and includes amortization
of premiums and discounts.
Repurchase Agreements
Securities pledged as collateral for repurchase agreements are held by the
Federal Reserve Bank and are designated as being held on the Fund's behalf
by their custodian under a book-entry system. The Fund monitors the
adequacy of the collateral daily and can require the seller to provide
additional collateral in the event the market value of the securities
pledged falls below the repurchase agreement.
Income Taxes
It is the policy of the Fund to distribute all taxable income to
shareholders and to otherwise qualify as a regulated investment company
under provisions of the Internal Revenue Code. Accordingly, no provision
has been made for federal or state taxes.
Distributions to Shareholders
The Fund's dividends are declared daily from the total of net investment
income on portfolio securities, and distributed monthly. Income
distributions are determined in accordance with income tax regulations
which may differ from generally accepted accounting principles. These
differences are primarily due to differing treatments in the recognition of
income and expense items for financial statement and tax purposes.
Use of Management Estimates
The preparation of financial statements in conformity with generally
accepted accounting principles requires that management make certain
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. The reported
<PAGE> 5
LINDNER GOVERNMENT MONEY MARKET FUND
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
(UNAUDITED) DECEMBER 31, 1996
amounts of revenues and expenses during the reporting period may also be
affected by the estimates and assumptions management is required to make.
Actual results may differ from those estimates.
2. Organizational Expense
The Fund had expenses in connection with the organization and registration of
the Fund totaling $23,699 which are being amortized and reimbursed to the
Adviser on a straight line basis over a period of five years. Accumulated
amortization and organizational expense of these costs for the period ended
December 31, 1996, was $1,840.
3. Fees and Other Transactions with Affiliates
The management fee from the Fund is payable monthly to the Adviser at the
annual percentage rate of 0.15% of daily net asset values averaged monthly
(before reimbursement of expenses to the Fund, if any) of the Fund.
As administrator, Ryback Management administers the Fund's corporate affairs,
subject to the supervision of the Fund's Trustees and, in connection
therewith, furnishes the Fund with office facilities, together with ordinary
clerical and shareholder services. The administrator fee from the Fund is
payable monthly to Ryback Management at the annual percentage rate of 0.20%
of daily net asset values averaged monthly of the Fund.
Annual operating and management expenses for the Fund, excluding taxes and
interest, may not exceed the most stringent limitation imposed by state law
on expense limitations in a state in which the Fund's shares are qualified
for sale. Additionally, the Adviser has voluntarily agreed to waive its
administrative service fee to the extent necessary to cause the Fund's annual
total operating expenses to be not more than 0.50% of the Fund's average net
assets during the year. As of December 31, 1996, such a fees waiver was not
elected.
Ryback Management Corporation, acting as stock transfer agent and dividend
disbursing agent for the Fund, is compensated at a rate of 83 cents per
shareholder account per month. During the period ended December 31, 1996,
transfer agent fees of $3,516 were paid to Ryback Management Corporation by
the Fund.
Certain officers and directors of the Fund are affiliates of Ryback
Management Corporation.
4. Expense Offset Arrangements
The Fund has an arrangement whereby custodian expenses are reduced by
maintaining a compensating balance with the custodian. The Fund could have
invested the assets used by the custodian in an income-producing asset if it
had not agreed to a reduction in fees under the expense offset arrangement.
In the Statement of Operations and expense ratio in the Financial Highlights,
total expenses include the expense which had been offset. For the period
ended December 31, 1996, expenses have been increased for financial statement
presentation by $130.
5. Transactions of fund shares were as follows:
<TABLE>
<CAPTION>
PERIOD ENDED
DECEMBER 31, 1996
-------------------------------
SHARES AMOUNT
<S> <C> <C>
Sold.............. 153,571,537 $153,571,537
Dividend
reinvested...... 346,005 346,005
Redeemed.......... (113,360,960) (113,360,960)
------------ ------------
Net increase.... 40,556,581 $ 40,556,581
============ ============
</TABLE>
<PAGE> 6
LINDNER GOVERNMENT MONEY MARKET FUND
SCHEDULE OF INVESTMENTS
<TABLE>
<CAPTION>
(UNAUDITED) DECEMBER 31, 1996
--------------------------
FACE VALUE
AMOUNT SEE NOTE 1
<S> <C> <C>
U.S. GOVERNMENT AGENCY
SECURITIES (80.12%)
FFCB, floating rate, 4/1/97............ $1,000,000 $ 999,996
FFCB, 5.93%, 7/1/97.................... 750,000 750,122
FFCB, 11.90%, 11/20/97................. 1,750,000 1,835,519
FFCB, floating rate, 11/26/97.......... 1,000,000 999,716
FHLB, discount note, 1/3/97............ 1,000,000 999,697
FHLB, discount note, 1/9/97............ 1,000,000 998,839
FHLB, discount note, 1/16/97........... 1,000,000 997,754
FHLB, 4.52%, 2/7/97.................... 1,000,000 998,712
FHLB, 6.85%, 2/25/97................... 435,000 435,721
FHLB, 7.65%,3/25/97.................... 1,070,000 1,074,447
FHLB, discount note, 4/10/97........... 250,000 246,191
FHLB, floating rate, 4/10/97........... 1,000,000 1,000,988
FHLB, 6.52%, 4/24/97................... 25,000 25,071
FHLB, 6.65%, 5/19/97................... 60,000 60,274
FHLB, 5.935%, 6/6/97................... 50,000 50,072
FHLB, 5.84%, 9/897..................... 25,000 25,034
FHLB, 5.37%, 9/22/97................... 35,000 34,929
FHLB, 5.87%, 10/03/97.................. 1,000,000 1,002,622
FHLB, 5.36%, 12/15/97.................. 100,000 99,725
FHLB, 7.89%, 12/23/97.................. 50,000 51,024
FHLMC, discount note, 1/2/97........... 6,500,000 6,498,971
FHLMC, 8.2%, 1/16/98................... 500,000 500,469
FNMA, discount note, 1/9/97............ 1,000,000 995,936
FNMA, 7.68%, 1/27/97................... 150,000 150,197
FNMA, 6.75%, 4/22/97................... 100,000 100,234
FNMA, floating rate, 4/25/97........... 1,000,000 1,000,000
FNMA, medium term, 5/20/97............. 1,000,000 978,457
FNMA, 5.47%, 6/20/97................... 1,750,000 1,749,775
FNMA, 8.8%, 7/25/97.................... 30,000 30,474
FNMA, 5.53%, 8/1/97.................... 1,000,000 999,600
FNMA, floating rate, 9/2/97............ 1,000,000 999,340
FNMA, 9.55%, 9/10/97................... 500,000 512,969
FNMA, 5.79%, 11/14/97.................. 100,000 99,828
FNMA, 7.51%, 11/14/97.................. 40,000 40,536
FNMA, 6.05%, 11/10/97.................. 155,000 155,493
FNMA, 6.45%, 12/8/97................... 95,000 95,638
SLMA, floating rate, 1/23/97........... 1,000,000 1,000,140
SLMA, 5.28657%, 2/14/97................ 150,000 150,042
SLMA, floating rate, 4/21/97........... 500,000 500,637
SLMA, floating rate, 10/1/97........... 1,000,000 999,673
SLMA, floating rate, 11/20/97.......... 800,000 800,624
TVA, 6.00%, 1/15/97.................... 1,450,000 1,450,264
U.S. Government Agency Securities.......... $32,495,750
===========
</TABLE>
<PAGE> 7
LINDNER GOVERNMENT MONEY MARKET FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
<TABLE>
<CAPTION>
(UNAUDITED) DECEMBER 31, 1996
--------------------------
FACE VALUE
AMOUNT SEE NOTE 1
<S> <C> <C>
TEMPORARY CASH INVESTMENTS (24.00%)
Repurchase Agreements
(Collaterlized by U.S. Government Agency
Obligations)
Donaldson, Lufkin & Jenrette
Corporation dated 12/31/96,
6.77%, due 1/2/97...................... $9,732,000 $ 9,732,000
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Total Investments
(Cost $42,227,750)..................... 104.12% $42,227,750
Excess of Other Liabilities
over Assets............................ -4.12% (1,671,170)
-----------
Net Assets............................... 100.00% $40,556,581
===========
</TABLE>
Note 1
FFCB = Federal Farm Credit Bank
FHLB = Federal Home Loan Banks
FHLMC = Federal Home Loan Mortgage Corporation
FNMA = Federal National Mortgage Association
SLMA = Student Loan Marketing Association
TVA = Tennessee Valley Authority
<PAGE> 8
LINDNER GOVERNMENT MONEY MARKET FUND
MANAGEMENT COMMENT
Dear Fellow Shareholders:
July 6, 1996 marked the birth of the Lindner Government Money Market Fund. The
timing could not have been more perfect. Investors were rattled by the recent
decline in the market. While we have always encouraged our shareholders to
remain invested in our equity portfolios, we realized that many felt more
comfortable weathering the storms in a money market fund.
We take the same care in managing Lindner Government Money Market Fund as we do
with our other funds and remain positive about its yield and performance
compared to other government money market funds.
At December 31, 1996, the Lindner Government Money Market Fund reported a 7-day
net yield of 5.11% and a 30-day net yield of 5.07%. This performance placed the
Lindner Government Money Market Fund in the top ten percent of approximately
115 funds with similar investment parameters, as reported in the IBC Money Fund
Report, ranking fifth in 7-day net yield and sixth in 30-day net yield.
The portfolio of the Lindner Government Money Market Fund consists of bonds
issued by agencies of the U.S. government and repurchase agreements backed by
such securities. Although the Fund is conservatively managed to provide
adequate liquidity and safety for shareholders, the Fund's managers seek out
opportunities to maximize the return on the Fund. For instance, care is taken
to purchase securities for the Fund which are advantageously priced. Each
security under consideration for purchase by the Fund are subject to in-depth
analysis, both on the merits of the individual security and on the potential
impact on the portfolio as a whole. The portfolio is constructed with a
"laddering" of maturities in mind, in order to provide both a constant stream
of liquidity and to take advantage of higher yields at longer maturities. Also,
the Fund uses securities on which the coupon rate periodically resets in order
to insulate the Fund from dramatic changes in interest rates.
Respectfully submitted,
/S/ Eric E. Ryback
Eric E. Ryback
President
