<PAGE> 1
LINDNER FUNDS
ADVISED BY RYBACK MANAGEMENT CORPORATION
----------------------------------------
[LOGO]
Lindner Government
Money Market Fund
annual report
1997
<PAGE> 2
LINDNER GOVERNMENT MONEY MARKET FUND
<TABLE>
STATEMENT OF ASSETS AND LIABILITIES
<CAPTION>
JUNE 30,
1997
ASSETS
<S> <C>
Investment securities, at value.......................... $38,972,093
Cash..................................................... 298,447
Interest receivable...................................... 232,311
Unamortized organizational expense (Note 2).............. 19,706
Other assets............................................. 11,071
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Total assets......................................... 39,533,628
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LIABILITIES
Accounts payable and other liabilities:
Fund shares redeemed................................... 203,857
Dividends.............................................. 80,397
Organizational expense (Note 2)........................ 19,706
Administrator fee...................................... 6,661
Management fee......................................... 4,996
Other.................................................. 1,867
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Total liabilities.................................... 317,484
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NET ASSETS............................................... $39,216,144
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NET ASSETS CONSIST OF:
Paid-in capital.......................................... $39,216,144
===========
SHARES OF BENEFICIAL INTEREST, $1.00 PAR VALUE UNLIMITED
SHARES AUTHORIZED, OUTSTANDING......................... 39,216,144
===========
NET ASSET VALUE PER SHARE................................ $ 1.00
===========
</TABLE>
<TABLE>
STATEMENT OF OPERATIONS
<CAPTION>
PERIOD ENDED
JUNE 30,
1997<F1>
<S> <C>
INVESTMENT INCOME
Interest............................. $1,989,135
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EXPENSES:
Administrator fees (Note 3).......... 72,892
Management fees (Note 3)............. 54,669
Transfer agent fees (Note 3)......... 9,314
Shareholder communications........... 6,686
Organizational expense (Note 2)...... 4,159
Custodian expense.................... 3,071
Registration and regulatory fees..... 2,831
Other expenses....................... 1,882
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Total expenses..................... 155,504
Fees paid indirectly (Note 4).... (1,743)
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NET EXPENSES..................... 153,761
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NET INVESTMENT INCOME................ $1,835,374
==========
<FN>
<F1> Operations commenced on July 6, 1996.
</TABLE>
<PAGE> 3
LINDNER GOVERNMENT MONEY MARKET FUND
<TABLE>
STATEMENT OF CHANGES IN NET ASSETS
<CAPTION>
PERIOD ENDED
JUNE 30,
1997<F1>
<S> <C>
INCREASE IN NET ASSETS:
Net investment income............... $ 1,835,374
-----------
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income.......... (1,835,374)
-----------
FUND SHARES TRANSACTIONS:
Net increase in net assets resulting
from fund shares transactions
(Note 5)............................ 39,216,144
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NET ASSETS:
TOTAL INCREASE........................ 39,216,144
Net Assets at the Beginning of the
Period.............................. 0
-----------
NET ASSETS AT THE END OF THE PERIOD... $39,216,144
===========
<FN>
<F1> Operations commenced on July 6, 1996.
</TABLE>
<TABLE>
FINANCIAL HIGHLIGHTS
<CAPTION>
PERIOD ENDED
JUNE 30,
1997<F1>
<S> <C>
PER SHARE OPERATING DATA:
Net asset value, beginning of period...... $ 1.00
Income from investment operations......... 0.05
Dividends to shareholders................. (0.05)
------
Net asset value, end of period............ $ 1.00
======
TOTAL RETURN, AT NET ASSET VALUE<F2>...... 5.02%
======
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in millions)... $ 39.2
Average net assets (in millions).......... $ 36.5
Ratios to average net assets:
Net investment income................... 5.45%
Expenses................................ 0.43%
<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
JUNE 30, 1997
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)
JUNE 30, 1997
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 $23,865 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
June 30, 1997, was $4,159.
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 June 30, 1997, such a fee 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 June 30, 1997,
transfer agent fees of $9,217 were paid to Ryback Management Corporation by
the Fund.
Certain officers and directors of the Fund are affiliated with 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 June 30, 1997, expenses have been increased for financial statement
presentation by $1,743.
5. Transactions of fund shares were as follows:
<TABLE>
<CAPTION>
PERIOD ENDED
JUNE 30, 1997
-------------------------------
SHARES AMOUNT
<S> <C> <C>
Sold.............. 199,004,025 $199,004,025
Dividend reinvested. 905,457 905,457
Redeemed.......... (160,693,338) (160,693,338)
------------ ------------
Net increase.... 39,216,144 $ 39,216,144
============ ============
</TABLE>
<PAGE> 6
LINDNER GOVERNMENT MONEY MARKET FUND
<TABLE>
SCHEDULE OF INVESTMENTS
<CAPTION>
JUNE 30, 1997
--------------------------
FACE VALUE
AMOUNT SEE NOTE 1
<S> <C> <C>
U.S. GOVERNMENT AGENCY
SECURITIES (48.49%)
FFCB, 5.93%, 7/1/97...................... $ 750,000 $ 750,000
FFCB, 11.90%, 10/20/97................... 750,000 763,932
FFCB, floating rate, 11/26/97............ 1,000,000 999,872
FFCB, 6.05%, 5/1/98...................... 500,000 500,388
FHLB, discount note, 7/10/97............. 4,006,000 4,000,542
FHLB, 5.84%, 9/8/97...................... 25,000 25,009
FHLB, 5.37%, 9/22/97..................... 35,000 34,978
FHLB, 5.36%, 12/15/97.................... 100,000 99,868
FHLB, 7.89%, 12/23/97.................... 50,000 50,502
FHLB, 5.78%, 1/28/98..................... 1,000,000 1,000,000
FHLMC, pool M90179, 5.5%, 5/1/98......... 546,871 543,903
FNMA, 8.8%, 7/25/97...................... 30,000 30,056
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..................... 500,000 503,653
FNMA, 6.05%, 11/10/97.................... 630,000 630,916
FNMA, 7.51%, 11/14/97.................... 40,000 40,230
FNMA, 6.45%, 12/8/97..................... 95,000 95,299
FNMA, 6.02%, 1/20/98..................... 350,000 350,730
FNMA, 8.20%, 3/10/98..................... 545,000 554,142
FNMA, 6.00%,4/17/98...................... 500,000 499,570
FNMA, 5.41%,6/25/98...................... 300,000 298,073
HUD, 5.85%, 8/1/97....................... 600,000 600,033
SLMA, floating rate, 10/1/97............. 1,000,000 999,890
SLMA, floating rate, 10/30/97............ 1,000,000 1,000,469
SLMA, floating rate, 11/20/97............ 800,000 800,275
SLMA, floating rate, 1/21/98............. 1,500,000 1,500,617
SLMA, 7%, 3/3/98......................... 340,000 342,983
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$19,014,870
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U.S. TREASURY NOTES (1.31%)
8.25%, due 7/15/98....................... $ 500,000 $ 512,223
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TEMPORARY CASH INVESTMENTS (49.58%)
Repurchase Agreements
(Collaterlized by U.S. Government
Agency Obligations)
Bear Stearns Corporation dated
6/30/97, 5.65%, due 7/1/97............... 1,950,000 $ 1,950,000
Donaldson, Lufkin & Jenrette Corporation
dated 6/30/97,
5.92%, due 7/1/97........................ 6,787,000 6,787,000
Merrill Lynch and Company, Inc. dated
6/30/97, 5.75%,
due 7/1/97............................... 1,950,000 1,950,000
</TABLE>
<PAGE> 7
LINDNER GOVERNMENT MONEY MARKET FUND
<TABLE>
SCHEDULE OF INVESTMENTS (CONTINUED)
<CAPTION>
JUNE 30, 1997
-----------------------
FACE VALUE
AMOUNT SEE NOTE 1
<S> <C> <C>
TEMPORARY CASH INVESTMENTS (CONTINUED)
NationsBank Capital Markets, Inc. dated
6/30/97, 6.125%, due 7/1/97.............. 6,808,000 6,808,000
SwissBank Corporation dated
6/30/97, 5.60%, due 7/1/97............... 1,950,000 1,950,000
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$19,445,000
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Total Investments
(Cost $38,972,092)....................... 99.38% $38,972,093
Excess of Other Assets
over Liabilities......................... 0.62% 244,051
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Net Assets................................. 100.00% $39,216,144
===========
FFCB = Federal Farm Credit Bank
FHLB = Federal Home Loan Banks
FHLMC = Federal Home Loan Mortgage Corporation
FNMA = Federal National Mortgage Association
HUD = Housing and Urban Development
SLMA = Student Loan Marketing Association
TVA = Tennessee Valley Authority
</TABLE>
INDEPENDENT AUDITORS' REPORT
Lindner Government Money Market Fund
To the Trustees and Shareholders of Lindner Investments:
We have audited the accompanying statement of assets and liabilities of the
Lindner Government Money Market Fund, including the schedule of investments, as
of June 30, 1997, and the related statement of operations, the statement of
changes in net assets, and the financial highlights for the period then ended.
These financial statements and financial highlights are the responsibility of
the Funds' 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 June
30, 1997, by corresponding with the Fund's custodians and brokers. 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 Fund at June
30, 1997, and the results of its operations, the changes in its net assets, and
the financial highlights for the stated period, in conformity with generally
accepted accounting principles.
DELOITTE & TOUCHE LLP
St. Louis, Missouri
August 8, 1997
<PAGE> 8
LINDNER GOVERNMENT MONEY MARKET FUND
MANAGEMENT COMMENT
This very low risk fund invests in short-term debt securities guaranteed by the
United States government or its agencies. Investors can expect a moderate level
of current income, with liquidity and stability of capital.
Consistent with the goal of creating a safe haven with competitive returns for
investable cash, the Fund provided total return of 5.13% for the fiscal year
ended June 30. The Fund's return was among the top 20 of the 110 funds listed
in the IBC (International Business Communications) U.S. Government and Agency
classification for 42 of the 46 weeks it was ranked.
In order to maintain a high degree of liquidity and safety, the Fund invests
only in securities issued or guaranteed by the U.S. Treasury or agencies of the
Federal government and repurchase agreements backed by these securities. Bonds
of these types are generally considered to have the least credit risk of any
securities available, and they are easily bought and sold because of the vast
size of the market for these securities. Each security under consideration for
purchase by the Fund is analyzed thoroughly, to determine both the merits of
the individual security and the potential impact on the portfolio as a whole.
To provide liquidity at all times while taking advantage of higher yields at
longer maturities, we use a technique known as "laddering" maturities, in
which the portfolio is structured to have a range of maturities from overnight
to 13 months. To further protect the Fund from dramatic changes in interest
rates, securities on which the coupon periodically resets are often used. We
add additional value by investing in securities that offer unique value and are
overlooked by many competitors, within the conservative guidelines outlined in
the Fund's prospectus.
/s/Eric E. Ryback
Eric E. Ryback
President
