<PAGE> 1
[LOGO] LINDNER(R)
FUNDS CONTENTS
7711 Carondelet Avenue, Suite 700 * St. Louis, Missouri 63105 *
Tel: 314-727-5305 * Fax: 314-727-9306
Statements of Assets & Liabilities p.2
LINDNER GROWTH FUND
Letter from the Fund Managers p.6
Schedules of Investments p.7
LINDNER DIVIDEND FUND
Letter from the Fund Manager p.12
Schedules of Investments p.13
LINDNER UTILITY FUND
Letter from the Fund Manager p.17
Schedules of Investments p.18
LINDNER/RYBACK SMALL-CAP FUND
Letter from the Fund Manager p.20
Schedules of Investments p.21
LINDNER INTERNATIONAL FUND
Letter from the Fund Manager p.23
Schedules of Investments p.24
LINDNER HIGH-YIELD BOND FUND
Letter from the Fund Manager p.26
Schedules of Investments p.27
LINDNER BULWARK FUND
Letter from the Fund Manager p.29
Schedules of Investments p.30
LINDNER GOVERNMENT
MONEY MARKET FUND
Letter from the Fund Manager p.32
Schedules of Investments p.33
Statements of Operations p.34
Statements of Changes in Net Assets p.38
Notes to Financial Statements p.41
Financial Highlights p.52
Independent Auditors' Report p.55
TO OUR SHAREHOLDERS
The fiscal year for the Lindner Funds, which ended June 30, 1998, witnessed
the beginning of a slowdown in the economy, companies reporting smaller
earnings gains and price/earnings ratios at an all-time high.
With a number of stocks in the S&P 500 Index trading at 50 times earnings,
the market appears to have lost connection with valuation. We agree with
prominent financial scholar Gary Brinson's recent statement, "At some point,
there has to be a reckoning of expectations with economic reality." The
underlying fundamentals have to be reflected in the stock price.
Our Portfolio Managers remain committed to Lindner Funds' "value-focused"
investing style that seeks to minimize risk by investing in securities that
appear to be selling for less than fundamental value as measured by earnings,
cash flow and estimated private market value.
The pages that follow contain candid summaries on the performance of all
funds for fiscal 1998, including the new Lindner High-Yield Bond Fund and
Government Money Market Fund.
Our Portfolio Managers join me in thanking you for investing with us and for
your continued interest in the Lindner Funds.
/s/ Eric E. Ryback
Eric E. Ryback
President
<PAGE> 2
<TABLE>
- --------------------------------------------------------------------------------------------------
LINDNER INVESTMENTS
- --------------------------------------------------------------------------------------------------
STATEMENTS OF ASSETS AND LIABILITIES
JUNE 30, 1998
<CAPTION>
LINDNER GROWTH FUND LINDNER DIVIDEND FUND
------------------- ---------------------
<S> <C> <C>
ASSETS
Investment securities, at value:
Unaffiliated issuers (identified cost of $599,469,506,
$1,395,607,319, $37,235,048, $47,322,522, $3,040,265 and
$1,533,842, respectively) $748,429,255 $1,502,186,445
Affiliated issuers (identified cost $209,531,458, $86,246,781,
$0, $0, $0, and $0, respectively) (Note 5) 259,670,198 107,324,739
Cash 4,067,669 2,562,625
Receivables:
Investments sold - long 1,850,449 3,161,932
Dividends and interest 2,333,857 22,607,980
Fund shares sold 2,400,125 113,595
Unamortized organizational expense (Note 4) -- --
Receivable for expenses reimbursed by advisor -- --
Other assets 61,907 80,431
------------------ ------------------
Total assets 1,018,813,460 1,638,037,747
------------------ ------------------
LIABILITIES
Accounts payable and accrued liabilities:
Investment securities purchased 12,671,423 7,696,082
Fund shares redeemed 2,518,773 3,182,282
Distribution to shareholders (Note 8) -- 5,704,559
Other liabilities:
Management fee (Note 3) 72,477 2,155,135
Organizational expense (Note 4) -- --
Other 106,171 92,494
------------------ ------------------
Total liabilities 15,368,844 18,830,552
------------------ ------------------
NET ASSETS $1,003,444,616 $1,619,207,195
================== ==================
NET ASSETS CONSIST OF:
Capital (par value, $.01 per share, and additional paid-in
capital) $697,371,519 $1,458,516,185
Undistributed net investment income (loss) 9,480,871 5,814,077
Accumulated net realized gain on investments and foreign currency
transactions 97,493,962 27,221,863
Net unrealized appreciation (depreciation) on investments and
translation of assets and liabilities in foreign currency 199,098,264 127,655,070
------------------ ------------------
NET ASSETS APPLICABLE TO OUTSTANDING SHARES $1,003,444,616 $1,619,207,195
================== ==================
NET ASSET VALUE PER SHARE
Investor shares:
NET ASSETS $1,003,075,526 $1,616,429,733
SHARES OUTSTANDING 45,042,937 58,591,554
------------------ ------------------
$22.27 $27.59
================== ==================
Institutional shares:
NET ASSETS $369,090 $2,777,462
SHARES OUTSTANDING 16,623 100,895
================== ==================
$22.20 $27.53
================== ==================
</TABLE>
2 See Notes to Financial Statements
<PAGE> 3
<TABLE>
- -----------------------------------------------------------------------------------------------------------------------------------
LINDNER INVESTMENTS
- -----------------------------------------------------------------------------------------------------------------------------------
STATEMENTS OF ASSETS AND LIABILITIES
JUNE 30, 1998
<CAPTION>
LINDNER/RYBACK LINDNER LINDNER HIGH-YIELD
LINDNER UTILITY FUND SMALL-CAP FUND INTERNATIONAL FUND BOND FUND
-------------------- -------------- ------------------ ------------------
<S> <C> <C> <C> <C>
ASSETS
Investment securities, at value:
Unaffiliated issuers (identified cost of
$599,469,506, $1,395,607,319, $37,235,048,
$47,322,522, $3,040,265 and
$1,533,842, respectively) $42,459,722 $53,389,369 $2,708,290 $1,535,869
Affiliated issuers (identified cost
$209,531,458, $86,246,781, $0, $0, $0,
and $0, respectively) (Note 5) -- -- -- --
Cash (128,182) 357,184 36,243 85,600
Receivables:
Investments sold - long 710,603 526,418 -- --
Dividends and interest 239,868 17,470 5,394 31,818
Fund shares sold 242 162,527 -- 125
Unamortized organizational expense (Note 4) 1,254 2,954 10,425 19,486
Receivable for expenses reimbursed by advisor -- -- -- 569
Other assets 3,176 2,723 523 375
--------------- --------------- -------------- --------------
Total assets 43,286,683 54,458,645 2,760,875 1,673,842
--------------- --------------- -------------- --------------
LIABILITIES
Accounts payable and accrued liabilities:
Investment securities purchased 20,000 55,493 93,600 --
Fund shares redeemed 300,156 28,359 63,472 --
Distribution to shareholders (Note 8) 27,830 -- -- 6,171
Other liabilities:
Management fee (Note 3) 24,114 31,821 2,286 1,012
Organizational expense (Note 4) 7,709 7,014 12,561 20,170
Other 5,780 5,674 2,351 466
--------------- --------------- -------------- --------------
Total liabilities 385,589 128,361 174,270 27,819
--------------- --------------- -------------- --------------
NET ASSETS $42,901,094 $54,330,284 $2,586,605 $1,646,023
=============== =============== ============== ==============
NET ASSETS CONSIST OF:
Capital (par value, $.01 per share, and
additional paid-in capital) $32,183,305 $46,212,460 $2,841,089 $1,638,915
Undistributed net investment income (loss) 46,169 310,592 -- 1,472
Accumulated net realized gain on investments
and foreign currency transactions 5,446,947 1,740,385 77,512 3,609
Net unrealized appreciation (depreciation)
on investments and translation of assets
and liabilities in foreign currency 5,224,673 6,066,847 (331,996) 2,027
--------------- --------------- -------------- --------------
NET ASSETS APPLICABLE TO OUTSTANDING SHARES $42,901,094 $54,330,284 $2,586,605 $1,646,023
=============== =============== ============== ==============
NET ASSET VALUE PER SHARE
Investor shares:
NET ASSETS $42,892,606 $54,176,777 $2,586,277 $1,645,871
SHARES OUTSTANDING 2,556,194 6,377,682 296,846 162,892
--------------- --------------- -------------- --------------
$16.78 $8.49 $8.71 $10.10
=============== =============== ============== ==============
Institutional shares:
NET ASSETS $8,488 $153,507 $328 $152
SHARES OUTSTANDING 504 18,102 38 15
=============== =============== ============== ==============
$16.84 $8.48 $8.63 $10.12
=============== =============== ============== ==============
</TABLE>
See Notes to Financial Statements 3
<PAGE> 4
<TABLE>
- ------------------------------------------------------------------------------------------------------
LINDNER INVESTMENTS
- ------------------------------------------------------------------------------------------------------
STATEMENT OF ASSETS AND LIABILITIES
JUNE 30, 1998
<CAPTION>
LINDNER BULWARK FUND
--------------------
<S> <C>
ASSETS
Investment securities, at value:
Unaffiliated issuers (identified cost of $23,697,376) $18,124,138
Affiliated issuers (identified cost $2,133,014) 917,768
Cash 102,804
Receivables:
Dividends and interest 59,177
Investments sold - short 12,142,516
Deposits with brokers for securities sold short 7,587,159
Unamortized organizational expense (Note 4) 7,010
Other assets 2,748
----------------
Total assets 38,943,320
----------------
LIABILITIES
Accounts payable and accrued liabilities:
Investment securities purchased 281,480
Investments sold short, at value (proceeds $12,142,516) 10,255,625
Short sales covered 79,868
Fund shares redeemed 17,899
Other liabilities:
Management fee (Note 3) 24,836
Organizational expense (Note 4) 14,960
Other 3,763
----------------
Total liabilities 10,678,431
----------------
NET ASSETS $28,264,889
================
NET ASSETS CONSIST OF:
Capital (par value, $.01 per share, and additional paid-in
capital) $54,892,287
Undistributed net investment income 263,514
Accumulated net realized loss on investments and foreign currency
transactions (21,944,952)
Net unrealized depreciation on investments and translation of
assets and liabilities in foreign currency (4,945,960)
----------------
NET ASSETS APPLICABLE TO OUTSTANDING SHARES $28,264,889
================
NET ASSET VALUE PER SHARE
Investor shares:
NET ASSETS $28,264,781
SHARES OUTSTANDING 5,002,615
----------------
$5.65
================
Institutional shares:
NET ASSETS $108
SHARES OUTSTANDING 18
================
$6.02
================
4 See Notes to Financial Statements
</TABLE>
<PAGE> 5
<TABLE>
- ------------------------------------------------------------------------------------------------------
LINDNER INVESTMENTS
- ------------------------------------------------------------------------------------------------------
STATEMENT OF ASSETS AND LIABILITIES
JUNE 30, 1998
<CAPTION>
LINDNER GOVERNMENT
MONEY MARKET FUND
------------------
<S> <C>
ASSETS
Investment securities, at value $42,297,167
Cash 831,357
Interest receivable 138,671
Unamortized organizational expense (Note 4) 15,070
Other assets 14,688
----------------
Total assets 43,296,953
----------------
LIABILITIES
Accounts payable and accrued liabilities:
Fund shares redeemed 245,126
Dividends 53,919
Organizational expense (Note 4) 16,229
Administrator fee 6,874
Management fee 5,156
Other 7,216
----------------
Total liabilities 334,520
----------------
NET ASSETS $42,962,433
================
NET ASSETS CONSIST OF:
Paid-in capital $42,962,433
================
SHARES OF BENEFICIAL INTEREST, $1.00 PAR VALUE
UNLIMITED SHARES AUTHORIZED, OUTSTANDING 42,962,433
================
NET ASSET VALUE PER SHARE $1.00
================
</TABLE>
See Notes to Financial Statements 5
<PAGE> 6
PERFORMANCE SUMMARY
As we write to you, these are truly the dog days of August. For the fiscal
year ended June 30, 1998, the Fund returned 0.31% versus a total return of
30.2% for the S&P 500 Index. However, the growth, even in the S&P, is
"suspect" because it occurred with fewer and fewer stocks going up.
This condition could be called a "zombie" market. It appears to be relatively
normal on the outside while "dying" on the inside.
It does not help that the S&P has recently peaked at 30 times earnings. When
stocks reach these valuations, trouble is usually close by.
So far, our response to this has been to sell many of the stocks in the
portfolio. As of this writing, the number of stocks in the portfolio has been
reduced to 100 from 173 on December 31, 1997. This included selling Creative
Biomolecules before its stock collapsed.
We bought shares of Zeigler Coal earlier in the year and its recent
acquisition has supplemented our results. Additionally, we acquired shares in
Airborne Freight, Inacom and National Presto, which signify our low-multiple
approach to investing, but have not added to performance in the short-term.
Existing market conditions look like those from 1972-1974. During this
period, it was possible to make money in the market by holding a large cash
position and maintaining positions in a few companies where growth continued.
In those days, the principal influencing factors were inflation, high
interest rates and price controls. Today, contributing factors include a
recession in Asia and competitive devaluation of international currencies.
These conditions are what inspired Benjamin Graham and David Dodd to publish
their classic Securities Analysis textbook in which they urge investors to
pay a lot of attention to book value, net working capital and earnings. It is
our opinion that these principles will be helpful to today's investors.
We will continue to pay close attention to valuation and seek to reduce
exposure to undesirable securities while searching for companies, whether
large or small, that trade at steep discounts to their long-run business
values.
/s/ Eric E. Ryback /s/ Robert A. Lange /s/ Gary E. Stiens
Eric E. Ryback Bob Lange Gary Stiens
President Portfolio Manager Director of Research
LINDNER GROWTH FUND
FUND PROFILE
- -------------------------------------------------------------------------------
This diversified fund seeks long-term capital appreciation through
investments in common stocks or securities convertible into common stocks.
Income is a secondary objective.
Portfolio composition by industry
June 30, 1998
[GRAPH]
6
<PAGE> 7
<TABLE>
- -----------------------------------------------------------------------------------------------------------
LINDNER INVESTMENTS
- -----------------------------------------------------------------------------------------------------------
SCHEDULES OF INVESTMENTS - JUNE 30, 1998
<CAPTION>
Number of Shares -
Principal Amount
Name of Issuer and Title of Issue of Bonds Value
- ---------------------------------------------- ------------------- -------------------
<S> <C> <C>
LINDNER GROWTH FUND
- -------------------
COMMON STOCKS (93.74.%)
Aerospace/Defense (5.19%)
Alliant Techsystems, Inc. <Fa>, <F*> 822,600 $52,029,450
-------------------
Aircraft Component Manufacturing (0.39%)
Avteam, Inc., Class A <F*> 364,100 $3,914,075
-------------------
Automobiles and Parts (0.86%)
Jason, Inc. <F*> 983,400 $8,604,750
-------------------
Brewery (0.35%)
SUN Brewing, Ltd. - GDR <Ff>, <F*> 273,000 $3,480,750
-------------------
Business Services (2.34%)
InaCom Corporation <F*> 450,000 $14,287,500
Scientific Software-Intercomp, Inc. <Fa>, <F*> 868,000 338,520
Superior Uniform Group, Inc. <Fa> 497,000 8,076,250
Wave Technologies International, Inc. <F*> 145,000 806,563
-------------------
$23,508,833
-------------------
Chemicals and Allied Products (4.28%)
Lawter International, Inc. 1,600,000 $17,400,000
Solvay & Cie S.A. <Ff> 322,000 25,528,084
-------------------
$42,928,084
-------------------
Computers and Electronic Equipment (7.55%)
Adaptec, Inc. <F*> 805,000 $11,521,562
Gradco Systems, Inc. <Fa>, <F*> 776,000 5,238,000
NCR Corporation <F*> 600,000 19,500,000
Oak Technology, Inc. <Fa>, <F*> 2,462,000 11,232,875
Unisys Corporation <F*> 1,000,000 28,250,000
-------------------
$75,742,437
-------------------
<CAPTION>
Number of Shares -
Principal Amount
Name of Issuer and Title of Issue of Bonds Value
- ---------------------------------------------- ------------------- -------------------
<S> <C> <C>
Construction and Real Estate (1.71%)
Abengoa S.A. <Ff> 47,322 $4,355,392
Blagovno Trgovinski Center - GDR - Rule 144A <Fr> (Acquired
7/25/97 - 5/7/98, Cost $2,923,000) 315,000 1,984,500
Butler Manufacturing Company 296,700 10,106,344
Mostostal Export Corporation <Ff> 444,400 688,202
-------------------
$17,134,438
-------------------
Distributors (0.81%)
SED International Holdings, Inc. <Fa>, <F*> 1,000,000 $8,125,000
-------------------
Energy (7.60%)
Barrington Petroleum Ltd. <Ff>, <F*> 1,105,500 $2,856,783
Bitech Petroleum Corporation
Common stock <Ff>, <F*> 304,100 661,761
Common stock - Rule 144A <Ff>, <F*>, <Fr> (Acquired 5/23/97,
Cost $3,062,787) 2,000,000 4,352,261
Harken Energy Corporation <F*> 3,105,800 14,946,663
Huntway Refining Company <Fa>, <F*> 1,198,468 1,947,511
Lukoil Oil Company - ADR <F*>, <Fr> (Acquired 5/20/96 -
5/20/98, Cost $1,607,925) 32,000 1,056,000
Occidental Petroleum Corporation 550,000 14,850,000
Siem Industries, Inc.,
(formerly Norex Industries, Inc.) <Fa>, <F*> 1,275,200 21,837,800
USX-Marathon Group 400,000 13,725,000
-------------------
$76,233,779
-------------------
Environmental Services (1.46%)
Laidlaw Environmental Services, Inc. <F*> 2,261,000 $8,196,125
Recycling Industries, Inc. <Fa>, <F*> 1,100,000 6,462,500
-------------------
$14,658,625
-------------------
See Notes to Financial Statements 7
<PAGE> 8
<CAPTION>
- -----------------------------------------------------------------------------------------------------------
LINDNER INVESTMENTS
- -----------------------------------------------------------------------------------------------------------
SCHEDULES OF INVESTMENTS - JUNE 30, 1998
Number of Shares -
Principal Amount
Name of Issuer and Title of Issue of Bonds Value
- ---------------------------------------------- ------------------ -------------------
<S> <C> <C>
LINDNER GROWTH FUND
- -------------------
Financial Services (9.09%)
Banco de Colombia S.A. - GDR - Rule 144A <Fr> (Acquired 4/25/96
- 6/10/96, Cost $2,218,750) 250,000 $1,312,500
Bank Inicjatyw Gospodarczych
Common Stock <Ff> 2,100,000 2,800,401
Common Stock - GDR 338,000 6,557,200
Banque Libanaise pour le Commerce SAL
GDR - Rule 144A <F*>, <Fr> (Acquired 12/11/96 - 12/31/96,
Cost $2,383,500) 200,000 2,810,000
CORUS Bankshares, Inc. 664,958 26,764,560
Eesti Uhispank - GDR - Rule 144A <F*>, <Fr> (Acquired 3/6/98 -
5/22/98, Cost $3,786,281) 262,500 2,113,125
International Bancshares Corporation 484,175 32,016,072
Union Planters Corporation 286,100 16,826,256
-------------------
$91,200,114
-------------------
Gasoline Distribution (0.10%)
DOR Energy - GDR - Rule 144A <F*>, <Fr> (Acquired 6/19/98, Cost
$1,000,800) 139,000 $1,000,800
-------------------
Healthcare (1.67%)
Comprehensive Care Corporation - Rule 144A <Fa>, <F*>, <Fr>
(Acquired 2/3/95 - 7/14/95, Cost $1,410,000) 250,000 $2,453,125
Hyseq, Inc. -
Common Stock <Fa>, <F*> 5,000 54,063
Rule 144A <Fa>, <F*>, <Fr> (Acquired 4/25/96 - 10/16/97, Cost
$4,142,800) 720,000 6,645,600
Rightchoice Managed Care, Inc., Class A <F*> 516,300 6,550,556
Slovakofarma, A.S. - GDR - Rule 144A <F*>, <Fr> (Acquired
10/7/97 - 10/9/97, Cost $2,034,202) 200,000 1,104,000
-------------------
$16,807,344
-------------------
<CAPTION>
Number of Shares -
Principal Amount
Name of Issuer and Title of Issue of Bonds Value
- ---------------------------------------------- ------------------- -------------------
<S> <C> <C>
Hotel Operator (0.35%)
Orbis S. A. <Ff>, <F*> 400,000 $3,556,065
-------------------
Industrial Products and Services (4.57%)
Buderus AG <Ff> 5,000 $2,493,352
Mark IV Industries, Inc. 300,000 6,487,500
Quixote Corporation <Fa> 713,000 8,734,250
Tecumseh Products Company,
Class A 2,100 110,906
Class B 125,000 7,156,250
Transtechnology Corporation <Fa> 316,000 8,117,250
Vitro, Sociedad Anonima - ADR <F*> 2,000,000 12,750,000
-------------------
$45,849,508
-------------------
Insurance (7.30%)
Acceptance Insurance Companies, Inc. <F*> 450,000 $11,053,125
Gainsco, Inc. <Fa> 1,263,900 8,294,344
Hilb, Rogal and Hamilton Company <Fa> 1,000,000 15,625,000
Old Republic International Corporation 1,145,625 33,581,133
PICO Holdings, Inc. <F*> 1,092,321 4,710,634
-------------------
$73,264,236
-------------------
Investments (2.19%)
Antofagasta Holdings P.L.C. <Ff> 950,000 $4,002,586
Dundee Bancorp, Inc. <Ff>, <F*> 300,400 4,749,609
Minorco - ADR 1,110,000 13,250,625
-------------------
$22,002,820
-------------------
Leisure/Entertainment (3.53%)
American Classic Voyages Company <F*> 536,200 $7,908,950
Arctic Cat, Inc. 500,500 4,942,437
International Speedway Corporation, Class B 417,330 12,102,570
Sotheby's Holdings, Inc. 467,600 10,462,550
-------------------
$35,416,507
-------------------
8 See Notes to Financial Statements
<PAGE> 9
<CAPTION>
- -----------------------------------------------------------------------------------------------------------
LINDNER INVESTMENTS
- -----------------------------------------------------------------------------------------------------------
SCHEDULES OF INVESTMENTS - JUNE 30, 1998
Number of Shares -
Principal Amount
Name of Issuer and Title of Issue of Bonds Value
- ---------------------------------------------- ------------------- -------------------
<S> <C> <C>
LINDNER GROWTH FUND
- -------------------
Manufacturing - Consumer Goods (1.16%)
National Presto Industries, Inc. 300,000 $11,681,250
-------------------
Manufacturing - Industrial Products (0.32%)
Dogi S. A. <Ff>, <F*> 200,090 $3,202,172
-------------------
Metals Processing (0.70%)
Republic Engineered Steels, Inc. <Fa>, <F*> 1,138,000 $4,907,625
Seversky Tube Works - ADR <F*> 145,054 2,103,283
-------------------
$7,010,908
-------------------
Mining (5.88%)
Ashanti Goldfields Company, Ltd. - GDR 232,910 $1,892,394
Bema Gold Corporation <Ff>, <F*> 812,200 1,314,543
Energy Resources of Australia Ltd <Ff> 1,925,905 3,601,829
Getchell Gold Corporation <F*> 239,800 3,597,000
Goldcorp Inc., Class A <F*> 1,365,800 6,405,602
Gold Reserve Corporation <Ff> <F*> 538,550 1,036,448
Greenstone Resources, Ltd. - Rule 144A <Ff>, <F*>, <Fr>
(Acquired 7/23/97 - 1/22/98, Cost $3,464,213) 390,700 1,472,939
Kinross Gold Corporation <Ff>, <F*> 950,000 3,087,500
Meridian Gold, Inc. <F*> 2,153,800 4,576,825
Newmont Gold Company 360,200 8,892,438
The Pioneer Group, Inc. 275,000 7,235,938
Prime Resources Group, Inc. <Ff> 450,000 3,151,989
Southernera Resources, Ltd. <Fa>, <F*> 1,300,300 5,615,031
Uranium Resources, Inc. <Fa>, <F*> 855,525 1,844,769
Zeigler Coal Holding Company 309,700 5,303,612
-------------------
$59,028,858
-------------------
<CAPTION>
Number of Shares -
Principal Amount
Name of Issuer and Title of Issue of Bonds Value
- ---------------------------------------------- ------------------- -------------------
<S> <C> <C>
Oil & Gas Exploration/Production (3.57%)
Cabot Oil & Gas Corporation, Class A 534,900 $10,698,000
Sasol, Ltd. <Ff> 1,000,000 5,831,919
Sonat, Inc. 500,000 19,312,500
-------------------
$35,842,419
-------------------
Oilfield Services (1.19%)
Hvide Marine, Inc., Class A <F*> 253,800 $3,442,162
Pride International, Inc. <F*> 500,000 8,468,749
-------------------
$11,910,911
-------------------
Paper, Printing and Publishing (1.55%)
American Media, Inc., Class A <F*> 1,715,900 $11,367,838
P.H. Glatfelter Company 264,900 4,188,731
-------------------
$15,556,569
-------------------
Real Estate Investment Trust (1.61%)
Novastar Financial, Inc. <Fa> 449,900 $7,367,113
Ramco-Gershenson Properties Trust <Fa> 461,900 8,776,100
-------------------
$16,143,213
-------------------
Retail Trade (3.95%)
CPI Corporation <Fa> 822,000 $19,573,875
Juno Lighting, Inc. 557,000 13,159,125
Wolohan Lumber Company <Fa> 529,300 6,913,981
-------------------
$39,646,981
-------------------
Steel Production (0.92%)
Nucor Corporation 200,000 $9,200,000
-------------------
See Notes to Financial Statements 9
<PAGE> 10
<CAPTION>
- -----------------------------------------------------------------------------------------------------------
LINDNER INVESTMENTS
- -----------------------------------------------------------------------------------------------------------
SCHEDULES OF INVESTMENTS - JUNE 30, 1998
Number of Shares -
Principal Amount
Name of Issuer and Title of Issue of Bonds Value
- ---------------------------------------------- ------------------- -------------------
<S> <C> <C>
LINDNER GROWTH FUND
- --------------------
Telecommunications (1.05%)
Vertex Communications Corporation <Fa>, <F*> 448,000 $10,528,000
-------------------
Transportation (7.01%)
Anangel-American Shipholdings Ltd. <Fa>, <F*> 812,900 $5,893,525
Frontline Ltd. - ADR <Fa>, <F*> 405,500 3,193,312
Kirby Corporation <F*> 400,000 10,100,000
Marine Transport Lines, Inc. <F*> 223,500 907,969
MIF Ltd. - ADR - Rule 144A <Ff>, <F*>, <Fr> (Acquired 12/20/96
- 4/10/97, Cost $4,250,000) 312,732 6,113,221
Oglebay Norton Company 178,744 7,060,388
OMI, Inc. <Fa>, <F*> 2,235,000 17,880,000
Overseas Shipholding Group, Inc. 791,300 16,122,737
Wah Kwong Shipping Holdings Ltd. <Ff> 5,025,759 3,113,331
-------------------
$70,384,483
-------------------
Utilities (2.63%)
El Paso Electric Company <F*> 1,873,200 $17,210,025
Huaneng Power International - ADR <F*> 222,700 2,992,531
Korea Electric Power Company - ADR 376,800 2,684,700
Unified Energy Systems - Reg S - ADR <Ff>, <F*>, <Fr> (Acquired
11/19/97 - 6/11/98, Cost $5,801,625) 248,000 3,472,000
-------------------
$26,359,256
-------------------
Miscellaneous (0.86%) $8,684,120
-------------------
Total Common Stocks (Cost $737,729,400) $940,636,754
-------------------
<CAPTION>
Number of Shares -
Principal Amount
Name of Issuer and Title of Issue of Bonds Value
- ---------------------------------------------- ------------------- -------------------
<S> <C> <C>
PREFERRED STOCKS (1.82%)
Airline (1.03%)
Trans World Airlines, Inc. $4.625 - Rule 144A <Fr> (Acquired
6/24/98 - 6/26/98, Cost $10,176,625) 135,000 $10,395,000
-------------------
Business Services (0.33%)
Interleaf, Inc., Series C, convertible - Rule 144A <F*>, <Fr>
(Acquired 10/15/96, Cost $5,000,000) 505,174 $3,293,734
-------------------
Energy (0.11%)
Westmoreland Coal Company, 8.50%, voting convertible <Fa>, <F#> 227,984 $1,111,422
-------------------
Healthcare (0.31%)
Comprehensive Care Corp., 4%, convertible - Rule 144A <Fr>
(Acquired 4/29/97, Cost $4,336,838) 41,260 $3,066,856
-------------------
Mining (0.04%)
Ashanti Goldfields Company, Ltd., $0.648 204,517 $425,395
-------------------
Total Preferred Stocks (Cost $20,980,698) $18,292,407
-------------------
10 See Notes to Financial Statements
<PAGE> 11
<CAPTION>
- -----------------------------------------------------------------------------------------------------------
LINDNER INVESTMENTS
- -----------------------------------------------------------------------------------------------------------
SCHEDULES OF INVESTMENTS - JUNE 30, 1998
Number of Shares -
Principal Amount
Name of Issuer and Title of Issue of Bonds Value
- ---------------------------------------------- ------------------- -------------------
<S> <C> <C>
LINDNER GROWTH FUND
- -------------------
NON-CONVERTIBLE BONDS (1.28%)
Energy (0.35%)
Huntway Partners L.P., 12%, due 2005 - Rule 144A <Fr> (Acquired
5/19/94 - 12/16/97, Cost $3,503,059) $3,503,223 $3,503,223
-------------------
Financial Services (0.93%)
Beal Financial Corporation, 12.75%, due 2000 $5,675,000 $6,100,625
WSFS Financial Corporation, 11% due 2005 3,050,000 3,233,000
-------------------
$9,333,625
-------------------
Total Non-Convertible Bonds (Cost $12,486,521) $12,836,848
-------------------
CONVERTIBLE BONDS (0.60%)
Mining (0.10%)
Dayton Mining Corporation, 7%, due 2002 - Rule 144A <Ff>, <Fr>
(Acquired 2/12/97, Cost $1,500,000) $1,500,000 $986,250
-------------------
Telecommunications (0.50%)
Metricom, Inc., 8%, due 2003 - Rule 144A <Fr> (Acquired
8/21/96, Cost $5,982,000) $5,982,000 $5,024,880
-------------------
Total Convertible Bonds (Cost $7,482,000) $6,011,130
-------------------
U.S. TREASURY BILLS (0.19%)
Maturing 7/30/98 (Cost $1,892,944) $1,900,000 $1,892,913
-----------------
<CAPTION>
Number of Shares -
Principal Amount
Name of Issuer and Title of Issue of Bonds Value
- ---------------------------------------------- ------------------- -------------------
<S> <C> <C>
U.S. GOVERNMENT AGENCY SECURITIES (2.83%)
FHDN, 7/2/98 $700,000 $699,896
FHDN, 7/24/98 19,400,000 19,333,690
FMCDN, 07/06/98 4,900,000 4,896,338
FNMA, 5.43%, 7/2/98 3,500,000 3,499,477
-------------------
(Cost $28,429,401) $28,429,401
-------------------
Total Investments (Cost $809,000,964) 100.46% $1,008,099,453
Excess of Other Liabilities over Assets -0.46% ($4,654,837)
------------------ -------------------
Net Assets 100.00% $1,003,444,616
================== ===================
<FN>
<F*> Non-income producing
<Fa> Denotes security is affiliated (See Note 6)
<Ff> Denotes security primarily traded in foreign markets
<Fr> Denotes security is restricted as to resale. The aggregate value of restricted
securities at June 30, 1998 was $62,160,014 which represented 6.19% of net
assets.
<F#> Dividends are in arrears
ADR - American Depository Receipts
GDR - Global Depository Receipts
FHDN - Federal Home Discount Note
FMCDN - Federal Home Loan Mortgage Corporation Discount Note
FNMA - Federal National Mortgage Association
See Notes to Financial Statements 11
</TABLE>
<PAGE> 12
PERFORMANCE SUMMARY
The Lindner Dividend Fund finished the year with a total return of 14.75%
compared with the S&P 500's total return of 30.2%. During the same period,
the yield on the 30-year Treasury Bond traded in a range of 6.79% to 5.62%, a
decline of more than 110 points.
The portfolio's average yield for the year was 5.69%, which compares very
favorably to the one-year Treasury Bill rate of 4.9% and the 30-year Treasury
Bond's 5.6% yield.
The Fund's average yield has held steady over the past year during this
dramatic decrease in interest rates. As of this writing, the Fund's average
yield has increased to 6.42% while the one-year Treasury Bill rate has
dropped to 4.1%.
The Fund has been able to achieve this dramatic increase in yield due to the
restructuring of the portfolio in the first quarter. By intentionally
changing its composition of stocks, bonds and convertible preferreds, the
Fund reduced volatility and placed more emphasis on its primary objective,
the production of current income. The Fund's non-income-producing securities
went from 12% of the portfolio to 4.93%, and represent only 4.3% of the
portfolio at this writing. The proceeds from the sales of these securities
were used to purchase high-yielding convertible preferred stock and
high-yielding corporate bonds.
The percentage of common stocks dropped from 35% to 25%, further reducing the
Fund's exposure to a declining market. The industry composition consists of
15.3% in utilities, 2.7% in financial securities and 3.9% in oil and gas. All
three industries have historically high dividend payouts.
The number of holdings in the portfolio was reduced by 53 names during the
past 12 months, bringing the year-end total to 107. This was done to take
gains on the securities we felt had reached the Fund's return objective and
make the portfolio less cumbersome to manage. In the future, the portfolio
will not exceed 100 names.
During the past year, the Fund restructured its portfolio to become more
defensive. This proved to be the right move as the stock market has declined
nearly 10% since the fiscal year end, while the Fund has increased the
average yield of its portfolio.
I wish to thank you for your continued interest in the Lindner Dividend Fund.
We will make every effort to try to provide you with a steady source of
income without incurring undue risk.
/s/ Eric E. Ryback
Eric E. Ryback
President
LINDNER DIVIDEND FUND
FUND PROFILE
- -------------------------------------------------------------------------------
This fund's primary objective is to generate current income; capital
appreciation is a secondary goal. Investments include common stocks,
convertible and non-convertible preferred stocks and corporate bonds, and
debt securities issued or guaranteed by the U.S. government or its agencies.
Portfolio composition by
investment category
June 30, 1998
[GRAPH]
12
<PAGE> 13
<TABLE>
- -----------------------------------------------------------------------------------------------------------
LINDNER INVESTMENTS
- -----------------------------------------------------------------------------------------------------------
SCHEDULES OF INVESTMENTS - JUNE 30, 1998
<CAPTION>
Number of Shares -
Principal Amount
Name of Issuer and Title of Issue of Bonds Value
- ---------------------------------------------- ------------------- -------------------
<S> <C> <C>
LINDNER DIVIDEND FUND
- ---------------------
COMMON STOCKS (25.49%)
Energy (3.44%)
Bitech Petroleum Corporation <Ff>, <F*> 2,136,495 $4,649,292
Harken Energy Corporation <Fa>, <F*> 7,020,000 33,783,750
Transportador Gas SUR - ADR 1,500,000 17,250,000
-------------------
$55,683,042
-------------------
Financial Services (0.41%)
American Bank of Connecticut <Fa> 244,600 $6,665,350
-------------------
Healthcare (0.34%)
Hyseq, Inc. - Rule 144A <F*>, <Fr> (Acquired 4/25/96, Cost
$2,500,000) 600,000 $5,538,000
-------------------
Mining (0.11%)
Atlas Corporation <F*> 197,414 $39,483
Uranium Resources, Inc.,
Common stock <Fa>, <F*> 339,000 730,986
Common stock <Fa>, <F*>, <Fr> (Acquired 5/19/94 - 12/22/95,
Cost $2,000,000) 500,000 1,078,150
-------------------
$1,848,619
-------------------
Oil & Gas Exploration (1.79%)
Sonat, Inc. 750,000 $28,968,750
-------------------
Real Estate Investment Trusts (2.06%)
Hanover Capital Mortgage Holdings, Inc., Common stock <Fa> 469,700 $4,462,150
Novastar Financial, Inc.,
Common stock <Fa> 100,000 1,637,500
Common stock - Rule 144A <Fa>, <Fr> (Acquired 5/19/94 -
12/6/96, Cost $9,020,004) 666,667 10,916,670
Ramco-Gershenson Properties Trust 118,475 2,251,025
Redwood Trust, Inc. <Fa> 800,000 14,050,000
-------------------
$33,317,345
-------------------
Transportation (0.31%)
Sea Containers Ltd., Class B 100,000 $3,837,500
<CAPTION>
Number of Shares -
Principal Amount
Name of Issuer and Title of Issue of Bonds Value
- ---------------------------------------------- ------------------- -------------------
<S> <C> <C>
Transportation (continued)
Transportacion Maritima Mexicana - ADR 179,800 $1,191,175
-------------------
$5,028,675
-------------------
Utilities (Gas, Electric & Water) (16.78%)
Ameren Corporation (formerly Union Electric Company) 600,000 $23,850,000
DTE Energy Company 792,900 32,013,338
Dominion Resources, Inc. 1,000,000 40,750,000
El Paso Electric Company <Fa>, <F*> 3,700,700 34,000,181
P P&L Resources, Inc. 1,000,000 22,687,500
Potomac Electric Power Company 1,000,000 25,062,500
Public Service Enterprise Group, Inc. 1,500,000 51,656,250
Puget Sound Energy, Inc. 600,000 16,087,500
Western Resources, Inc. 659,700 25,604,606
-------------------
$271,711,875
-------------------
Miscellaneous (0.25%) $4,033,011
-------------------
Total Common Stocks (Cost $364,230,119) $412,794,667
-------------------
PREFERRED STOCKS (44.46%)
Airline (3.65%)
Trans World Airlines, Inc.
$4.625 convertible - Rule 144A <Fr> (Acquired 11/26/97 -
6/30/98, Cost $7,297,500) 130,000 $10,010,000
8% convertible 1,242,400 49,074,800
-------------------
$59,084,800
-------------------
Broadcast/Media (3.55%)
CSC Holdings, Inc., Series I, 8.50% convertible (formerly
Cablevision Systems Corporation) 900,000 $57,543,750
-------------------
Computer and Electronic Equipment (6.79%)
The Titan Corporation, $1.00 convertible 70,300 $979,806
See Notes to Financial Statements 13
<PAGE> 14
<CAPTION>
- -----------------------------------------------------------------------------------------------------------
LINDNER INVESTMENTS
- -----------------------------------------------------------------------------------------------------------
SCHEDULES OF INVESTMENTS - JUNE 30, 1998
Number of Shares -
Principal Amount
Name of Issuer and Title of Issue of Bonds Value
- ---------------------------------------------- ------------------- -------------------
<S> <C> <C>
LINDNER DIVIDEND FUND
- ---------------------
Computer and Electronic Equipment (continued)
Unisys Corporation, $3.75 convertible 1,800,000 $94,050,000
Vanstar Financing Trust, 6.75% convertible 366,000 14,960,250
-------------------
$109,990,056
-------------------
Construction and Real Estate (0.84%)
LSB Industries, Inc., $3.25 convertible 423,900 $13,670,775
-------------------
Energy (6.80%)
ICO, Inc., $1.6875 convertible 442,500 $9,292,500
Lasmo PLC, Series A, 10% 492,600 12,899,962
Maxus Energy Corporation, 10% 200,000 5,150,000
McDermott International, Inc., $2.20 convertible 319,200 11,331,600
Unocal Corporation, $3.125 convertible 350,000 19,075,000
Western Gas Resources, Inc., $2.65 convertible 1,351,800 52,382,250
-------------------
$110,131,312
-------------------
Financial Services (1.52%)
ARM Financial Group, Inc., 9.5% 140,000 $3,605,000
Community Bank, Series B, 13% 196,500 5,403,750
Credit Lyonnais Capital S.C.A., 9.5% - Rule 144A <Fr> (Acquired
7/12/93, Cost $15,000,000) 600,000 15,600,000
-------------------
$24,608,750
-------------------
Food Distribution (1.51%)
Chiquita Brands International, Inc., Series A, $2.875 533,000 $24,451,375
-------------------
Metals Processing (3.80%)
Armco Inc., $3.625 convertible 434,000 $22,296,750
USX Corporation, 6.5% convertible 816,700 39,303,688
-------------------
$61,600,438
-------------------
Mining (3.02%)
Battle Mountain Gold Company, $3.25 55,000 $2,519,688
Freeport-McMoran Copper & Gold, Inc.,
Series B, variable rate 12,100 256,369
Series C, variable rate 751,700 14,235,319
<CAPTION>
Number of Shares -
Principal Amount
Name of Issuer and Title of Issue of Bonds Value
- ---------------------------------------------- ------------------- -------------------
<S> <C> <C>
Mining (continued)
Pittston Company, $3.125 convertible - Rule 144A <Fr> (Acquired
1/11/94 - 5/21/98, Cost $34,407,975) 839,200 $31,889,600
-------------------
$48,900,976
-------------------
Oilfield Services (1.31%)
Hvide Marine, Inc., 6.5% convertible 500,000 $21,187,500
-------------------
Paper, Printing and Publishing (0.20%)
Interleaf, Inc., Series C, convertible - Rule 144A <Fr>
(Acquired 10/15/96, Cost $5,000,000) 505,174 $3,293,734
-------------------
Real Estate Investment Trusts (0.68%)
Prime Retail, Inc.,
$2.125 convertible 202,600 $4,153,300
$2.625 preferred 260,000 6,857,500
-------------------
$11,010,800
-------------------
Retail Trade (1.97%)
Cendent Corporation, 7.5% convertible 850,000 $31,821,875
-------------------
Steel Production (1.97%)
Bethlehem Steel Corporation, $3.50 convertible - Rule 144A <Fr>
(Acquired 8/1/97 - 10/31/97, Cost $30,886,750) 712,500 $31,884,375
-------------------
Telecommunications (2.76%)
Nextlink Communications, Inc., 6.50%, convertible - Rule 144A
<Fr> (Acquired 3/31/98 - 6/24/98, Cost $40,884,020) 855,000 $44,673,750
-------------------
Utilities (Gas, Electric & Water) (1.37%)
Central Maine Power Company,
4.75% 8,300 $546,762
5.25% 42,500 3,091,875
Cleveland Electric Illuminating Company, Series S, 9% 16,000 17,120,000
Texas-New Mexico Power Company, 4.65% 16,300 1,320,300
-------------------
$22,078,937
-------------------
14 See Notes to Financial Statements
<PAGE> 15
<CAPTION>
- -----------------------------------------------------------------------------------------------------------
LINDNER INVESTMENTS
- -----------------------------------------------------------------------------------------------------------
SCHEDULES OF INVESTMENTS - JUNE 30, 1998
Number of Shares -
Principal Amount
Name of Issuer and Title of Issue of Bonds Value
- ---------------------------------------------- ------------------- -------------------
<S> <C> <C>
LINDNER DIVIDEND FUND
- ---------------------
Miscellaneous (2.72%) $44,044,238
-------------------
Total Preferred Stocks (Cost $656,469,512) $719,977,441
-------------------
NON-CONVERTIBLE BONDS (17.93%)
Aerospace/Defense (0.67%)
Alliant Techsystems, Inc., 11.375%, due 2003 $10,000,000 $10,887,500
-------------------
Airlines (2.26%)
Canadian Airlines Corporation, 10%, due 2005 $14,975,000 $15,199,625
Trans World Airlines, Inc., 11.375%, due 2006 - Rule 144A <Fr>
(Acquired 2/26/98, Cost $10,000,000) 10,000,000 10,062,500
12%, due 2002 10,750,000 11,368,125
-------------------
$36,630,250
-------------------
Apparel & Other Textile Products (1.00%)
Hartmarx Corporation, 10.875%, due 2002 $15,555,000 $16,254,975
-------------------
Computer and Electronic Equipment (0.09%)
Scientific Software-Intercomp, Inc., 7% Note, due 2001 with
warrants attached - Rule 144A <F##>, <Fr> (Acquired 4/26/96,
Cost $5,000,000) $5,000,000 $1,250,000
Streamlogic Corporation, 14%, due 1998 <F##> 832,976 166,596
-------------------
$1,416,596
-------------------
Environmental Services (0.10%)
Recycling Industries, Inc.,
13%, due 2005 - Rule 144A <Fr> (Acquired 5/22/98, Cost
$668,425) $685,000 $698,700
13%, due 2005 - Rule 144A <Fr> (Acquired 6/4/98, Cost
$854,250) 850,000 867,000
-------------------
$1,565,700
-------------------
Financial Services (4.51%)
Beal Financial Corporation, 12.75%, due 2000 $27,500,000 $29,562,500
Mego Mortgage Corporation,
12 1/2%, due 2001 6,000,000 5,910,000
<CAPTION>
Number of Shares -
Principal Amount
Name of Issuer and Title of Issue of Bonds Value
- ---------------------------------------------- ------------------- -------------------
<S> <C> <C>
Financial Services (continued)
12 1/2%, due 2001 - Rule 144A <Fr> (Acquired 10/15/97, Cost
$5,050,000) $5,000,000 $4,925,000
TeleBanc Financial Corporation, 11.5%, due 2004 1,500,000 1,500,000
WSFS Financial Corporation, 11%, due 2005 19,150,000 20,299,000
Wilshire Financial Services Group, 13%, due 2004 10,000,000 10,875,000
-------------------
$73,071,500
-------------------
Manufacturing - Consumer Goods (0.18%)
Decora Industries, Inc., 11%, due 2005 - Rule 144A <Fr>
(Acquired 4/24/98, Cost $2,890,055) $2,960,000 $2,893,400
-------------------
Mining (1.63%)
Kaiser Aluminum & Chemical Corporation, 9.875%, due 2002 $25,500,000 $26,328,750
-------------------
Paper, Printing and Publishing (1.16%)
United States Banknote Corporation, 10.375%, due 2002 $18,100,000 $18,801,375
-------------------
Satellite Communications (2.18%)
Iridium LLC, 13%, due 2005 $12,000,000 $12,930,000
Iridium Operating LLC, 10.875%, due 2005 20,000,000 22,350,000
-------------------
$35,280,000
-------------------
Transportation (2.60%)
Global Ocean Carriers Ltd., 10.25%, due 2007 $20,000,000 $18,100,000
Transportacion Maritima Mexicana, S.A. de C.V., 9.25%, due 2003 26,100,000 24,012,000
-------------------
$42,112,000
-------------------
Utilities (Gas, Electric & Water) (1.27%)
Gascart, 9%, due 1999 - Rule 144A <Fr> (Acquired 1/13/94 -
9/11/96, Cost $9,494,225) $10,816,000 $10,870,080
Public Service Company of New Mexico, 10.3%, due 2014 3,151,000 3,351,403
See Notes to Financial Statements 15
<PAGE> 16
<CAPTION>
- -----------------------------------------------------------------------------------------------------------
LINDNER INVESTMENTS
- -----------------------------------------------------------------------------------------------------------
SCHEDULES OF INVESTMENTS - JUNE 30, 1998
Number of Shares -
Principal Amount
Name of Issuer and Title of Issue of Bonds Value
- ---------------------------------------------- ------------------- -------------------
<S> <C> <C>
LINDNER DIVIDEND FUND
- ---------------------
Utilities (continued)
Texas-New Mexico Power Company, 9.25%, due 2000 $6,000,000 $6,341,028
-------------------
$20,562,511
-------------------
Miscellaneous (0.28%) $4,488,269
-------------------
Total Non-Convertible Bonds (Cost $284,557,451) $290,292,826
-------------------
CONVERTIBLE BONDS (9.75%)
Computer and Electronic Equipment (2.50%)
Intevac, Inc., 6.50%, due 2004 - Rule 144A <Fr> (Acquired
1/22/98 - 2/18/98, Cost $2,263,560) $2,848,000 $2,456,400
Quantum Corporation, 7%, due 2004 12,000,000 11,520,000
Reptron Electronics, Inc., 6.75%, due 2004 13,500,000 10,800,000
Richey Electronics, Inc., 7%, due 2006 17,095,000 15,770,137
-------------------
$40,546,537
-------------------
Engineering & Manufacturing (0.51%)
Intermagnetics General Corporation, 5.75%, due 2003 - Rule 144A
<Fr> (Acquired 7/22/97 - 11/25/97, Cost $7,713,088) $8,225,000 $8,019,375
-------------------
Mining (0.24%)
Atlas Corporation, 9%, due 1998 - Rule 144A <Fr> (Acquired
6/1/95, Cost $2,680,095) $3,500,000 $35,000
Uranium Resources, Inc., 6.5%, due 2000 - Rule 144A <Fr>
(Acquired 5/22/95, Cost $4,500,000) 4,500,000 3,915,000
-------------------
$3,950,000
-------------------
Real Estate Investment Trust (0.45%)
Sizeler Property Investors, Inc., 8%, due 2003 $7,300,000 $7,236,125
-------------------
Retail Trade (1.65%)
Charming Shoppes, 7.5%, due 2006 $28,025,000 $26,728,844
-------------------
<CAPTION>
Number of Shares -
Principal Amount
Name of Issuer and Title of Issue of Bonds Value
- ---------------------------------------------- ------------------- -------------------
<S> <C> <C>
Telecommunications (3.57%)
International CableTel Inc., 7%, due 2008 - Rule 144A <Fr>
(Acquired 6/7/96 - 4/4/97, Cost $28,508,750) $30,000,000 $45,262,500
Metricom Inc., 8%, due 2003 - Rule 144A <Fr> (Acquired 8/21/96,
Cost $15,000,000) 15,000,000 12,600,000
-------------------
$57,862,500
-------------------
Miscellaneous (0.83%) $13,468,799
-------------------
Total Convertible Bonds (Cost $147,961,750) $157,812,180
-------------------
U.S. TREASURY BILLS (1.77%)
Maturing 7-2-98 to 7-23-98 (Cost $28,635,268) $28,700,000 $28,634,070
-------------------
Total Investments (Cost $1,481,854,100) 99.40% $1,609,511,184
Excess of Other Assets over Liabilities 0.60% $9,696,011
------------------ -------------------
Net Assets 100.00% $1,619,207,195
================== ===================
<FN>
<F*> Non-income producing
<Fa> Denotes security is affiliated (See Note 6)
<Ff> Denotes security primarily traded in foreign markets
<Fr> Denotes security is restricted as to resale. The aggregate value of restricted
securities at June 30, 1998 was $258,739,236 which represented 15.98% of net
assets.
<F##> Denotes bond is in default and is non-income producing
ADR - American Depository Receipts
</TABLE>
16 See Notes to Financial Statements
<PAGE> 17
PERFORMANCE SUMMARY
The Lindner Utility Fund finished the fiscal year 1998 with a total return of
15.53%. This compares to the total returns of the Dow Jones and New York
Stock Exchange utility indices of 34.18% and 38.10% respectively. The bulk of
the underperformance can be attributed to two areas. First we had exposure to
energy investments -- predominately in natural gas where the commodity price
held up well but the stock prices were illogically pulled down with oil
weakness. Secondly, our value investing style exposed glaringly cheap
investments in basic service industries (electric, telephone, and energy) in
emerging countries. While we had no exposure to Asia, the contagion spread to
other areas such as Latin America and Eastern Europe and led to
underperformance in our foreign investments.
As we look back on the year, it is easy to see where we underperformed and
where we outperformed. As discussed above, we did poorly with all of our
energy names. In particular, one of our larger holdings, Harken Energy, lost
some of its previous gains in sympathy with its peers. However, this company
is event driven and there are many upcoming events between now and the end of
the year that can define the tremendous oil prospects they control in
Columbia, South America.
On the positive side, we have had great performance from our investments in
the broad area of communications. Two large investments in the cable area
(made when that industry was out of favor and a "value" play) have become
huge winners. Our investment in Cablevision Systems (US) and International
Cabletel (UK) were made via convertible securities which allowed us to be
"paid to wait." Whenever possible, we like to consider that option as it
tends to take some of the volatility out of the market swings.
As always, we view your investments in our family of funds with a long-term
focus. We feel the investment process is like a marathon instead of a sprint.
With this in mind, we are proud to note our rank within the top quintile
(20%) for total return for 3 years among funds with our investment
objective.<F1> As value investors, we have to be able to look past current
events, which at times suggests the demise of entire industries, and find the
true gems left behind.
/s/ Rick Eckenrodt, Jr.
Rick Eckenrodt, Jr.
Portfolio Manager
[FN]
<F1>According to Morningstar as of 6/30/98.
LINDNER UTILITY FUND
FUND PROFILE
- -------------------------------------------------------------------------------
This fund seeks current income through investments in securities of domestic
and foreign public utility companies, with capital appreciation as a
secondary goal. Utilities are broadly defined to include companies that
provide basic services on a regular basis.
Portfolio composition by industry
June 30, 1998
[GRAPH]
17
<PAGE> 18
<TABLE>
- -----------------------------------------------------------------------------------------------------------
LINDNER INVESTMENTS
- -----------------------------------------------------------------------------------------------------------
SCHEDULES OF INVESTMENTS - JUNE 30, 1998
<CAPTION>
Number of Shares -
Principal Amount
Name of Issuer and Title of Issue of Bonds Value
- ---------------------------------------------- ------------------- -------------------
<S> <C> <C>
LINDNER UTILITY FUND
- --------------------
COMMON STOCKS (59.54%)
Electrical Generation (1.31%)
NRG Generating (U.S.), Inc. <F*> 39,500 $562,875
-------------------
Energy (9.78%)
Bitech Petroleum Corporation <F*>, <Ff> 310,000 $674,600
Harken Energy Corporation <F*> 525,000 2,526,563
Seagull Energy Corporation <F*> 60,000 993,750
-------------------
$4,194,913
-------------------
Mining (1.00%)
Uranium Resources, Inc. <F*> 200,000 $431,260
-------------------
Natural Gas Exploration & Production (4.10%)
Cabot Oil & Gas Corporation, Class A 50,000 $1,000,000
Louis Dreyfus Natural Gas Corporation <F*> 40,000 757,500
-------------------
$1,757,500
-------------------
Natural Gas Pipeline (4.69%)
Continental Natural Gas, Inc. <F*> 94,800 $663,600
Sonat, Inc. 20,000 772,500
Transportador Gas SUR - ADR 50,000 575,000
-------------------
$2,011,100
-------------------
Oilfield Services (3.63%)
Hvide Marine, Inc., Class A 70,000 $949,375
Pride International, Inc. <F*> 36,000 609,750
-------------------
$1,559,125
-------------------
Telecommunications (4.52%)
Worldcom, Inc. 40,000 $1,937,500
-------------------
Telecommunication Equipment & Service (6.91%)
Ericsson (LM) - ADR 25,000 $715,625
Hyperion Telecommunications Inc.,
Class A <F*> 35,000 549,063
Motorola, Inc. 20,000 1,051,250
<CAPTION>
Number of Shares -
Principal Amount
Name of Issuer and Title of Issue of Bonds Value
- ---------------------------------------------- ------------------- -------------------
<S> <C> <C>
Telecommunication Equipment & Service (continued)
Teligent, Inc., Class A <F*> 22,000 $647,625
-------------------
$2,963,563
-------------------
Utilities (Gas, Electric & Water) (18.82%)
Ameren Corporation (formerly Union Electric Company) 30,000 $1,192,500
El Paso Electric Company <F*> 273,000 2,508,187
Interstate Energy Corporation 35,000 1,137,500
Irkutskenergo - ADR 50,000 271,875
Lenenergo - RDC - Rule 144A <F*>, <Fr> (Acquired 3/13/97, Cost
$910,000) 10 450,000
MCN Energy Group, Inc. 30,000 746,250
Texas Utilities Company 25,000 1,040,625
Unified Energy Systems - Reg S - ADR <F*>, <Fr> (Acquired
6/4/97 - 6/11/98, Cost $1,262,036) 52,000 728,000
-------------------
$8,074,937
-------------------
Utility Construction (1.29%)
Abengoa S.A. <Ff> 6,000 $552,224
-------------------
Miscellaneous (3.49%) $1,496,413
-------------------
Total Common Stocks (Cost $25,985,315) $25,541,410
-------------------
PREFERRED STOCKS (28.40%)
Cable Television Equipment/Systems (11.92%)
CSC Holdings, Inc., Series I, 8.50% convertible (formerly
Cablevision Systems Corporation) 80,000 $5,115,000
-------------------
Energy (4.33%)
Maxus Energy, 10% 15,000 $386,250
18 See Notes to Financial Statements
<PAGE> 19
<CAPTION>
- -----------------------------------------------------------------------------------------------------------
LINDNER INVESTMENTS
- -----------------------------------------------------------------------------------------------------------
SCHEDULES OF INVESTMENTS - JUNE 30, 1998
Number of Shares -
Principal Amount
Name of Issuer and Title of Issue of Bonds Value
- ---------------------------------------------- ------------------- -------------------
<S> <C> <C>
LINDNER UTILITY FUND
- --------------------
Energy (continued)
Western Gas Resources, Inc., $2.625 convertible 38,000 $1,472,500
-------------------
$1,858,750
-------------------
Media Broadcasting (3.30%)
Sinclair Broadcast Group, Inc., 6% convertible 20,000 $1,415,000
-------------------
Telecommunications (4.51%)
Nextlink Communications, Inc., 6.50%, convertible - Rule 144A
<Fr> (Acquired 3/26/98 - 6/02/98, Cost $1,825,500) 37,000 $1,933,250
-------------------
Utilities (Gas, Electric & Water) (2.98%)
Central Maine Power Company,
4.75% 11,096 $730,949
5.25% 7,500 545,625
-------------------
$1,276,574
-------------------
Miscellaneous (1.36%) $585,001
-------------------
Total Preferred Stocks (Cost $7,769,685) $12,183,575
-------------------
NON-CONVERTIBLE BONDS (4.00%)
Environmental Services (0.95%)
Recycling Industries, Inc. <Fa>
13%, due 2005 - Rule 144A <Fr> (Acquired 5/22/98, Cost
$252,250) $250,000 $255,000
13%, due 2005 - Rule 144A <Fr> (Acquired 6/4/98, Cost
$150,750) 150,000 153,000
-------------------
$408,000
-------------------
<CAPTION>
Number of Shares -
Principal Amount
Name of Issuer and Title of Issue of Bonds Value
- ---------------------------------------------- ------------------- -------------------
<S> <C> <C>
Natural Gas Exploration & Production (0.43%)
Seven Seas Petroleum, Inc., 12.50%, due 2005 - Rule 144A <Fr>
(Acquired 5/5/98 - 5/28/98, Cost $187,875) $185,000 $186,850
-------------------
Satellite Communications (2.62%)
Iridium LLC, 13%, due 2005 $1,000,000 $1,077,500
Iridium Operating LLC, 10.875%, due 2005 45,000 44,887
-------------------
$1,122,387
-------------------
Total Non-Convertible Bonds (Cost $1,613,683) $1,717,237
-------------------
CONVERTIBLE BONDS (7.03%)
Cable Television Equipment/Systems (7.03%)
International CableTel, Inc., 7%, due 2008 $2,000,000 $3,017,500
-------------------
Total Convertible Bonds (Cost $1,866,365) $3,017,500
-------------------
Total Investments (Cost $37,235,048) 98.97% $42,459,722
Excess of Other Assets over Liabilities 1.03% $441,372
------------------ -------------------
Net Assets 100.00% $42,901,094
================== ===================
<FN>
<F*> Non-income producing
<Ff> Denotes security primarily traded in foreign markets
<Fr> Denotes security is restricted as to resale. The aggregate value of restricted
securities at June 30, 1998 was $3,706,100 which represented 8.64% of net
assets.
ADR - American Depository Receipts
RDC - Russian Depository Receipts
</TABLE>
See Notes to Financial Statements 19
<PAGE> 20
PERFORMANCE SUMMARY
For the fiscal year ended June 30, 1998, the Lindner/Ryback Small-Cap Fund's
total return was 15.2%. This compares to the Russell 2000 Index of Small
Capitalization stocks' total return of 16.8% during the same period. For the
first six months of calendar 1998, the Fund's return declined 0.1%, versus an
appreciation of 5.3% for the Russell 2000.
We believe that our poor year-to-date results are due primarily to two
factors. First, two of our companies, in which we have large positions,
reported negative surprises. Second, many of our stocks failed to participate
in the market's rally despite the improving fundamentals of these businesses.
The first issue which had a significant negative impact on performance was
disappointing earnings reports from two of our companies, NRG Generating, and
Amway Japan. NRG is an independent power company that builds and buys
cogeneration plants. These plants convert natural gas into steam and
electricity used to supply the energy needs of industrial companies and
utilities. We purchased the stock because it met our requirements of what we
look for in a business, namely a) cheap valuation, b) a predictable and
growing free cash flow stream, c) good returns on capital, and d) a
management team that allocates capital for the benefit of its shareholders.
Unfortunately, one of NRG's utility customers is attempting to renege on
purchasing power at the contracted price. It caught us by surprise because
the contract price is fairly low -- less than 4-1/2 cents per kilowatt hour
- -- and the customer is also a 1/3 owner in this cogeneration facility. In
addition, the customer decided to renege only months after the plant was
initially constructed, instead of renegotiating the contract before the plant
was built. Our response has been to significantly increase our position since
we believe that the situation will be favorably resolved (NRG was successful
in round one -- the state court granted a preliminary injunction forcing the
customer to pay at stipulated rates). The current stock price values the
entire company at roughly six times free cash flow, which we think woefully
undervalues NRG's asset base as well as long-term potential.
Amway Japan also met all the criteria we look for in purchasing businesses
and we thought we were being doubly cautious by purchasing the preferred
stock with a large dividend yield. We felt this would provide some downside
protection. We were wrong. We made analytical and judgment errors in
understanding: a) the importance of the yen/dollar relationship in the
company's profitability and the resulting impact of the yen devaluation, b)
the deepening recession in Japan and its impact on the purchase of consumer
staple items, c) the negative publicity and government scrutiny regarding the
company's sales practices. The combination of these factors, most of which we
expect will be longer lasting in nature, forced us to rethink our assumptions
and consequently begin our exit from this position.
Despite these self-inflicted wounds, the second issue that we believe to be a
large part of our underperformance is that many of our names did not
participate when the small-cap market abruptly took off early in 1998. A
review of the past six months performance shows that when the Russell 2000
Index roared in the first quarter, we trailed miserably. We then recovered
all the underperformance and more when the Russell fell throughout the second
quarter only to trail again once the market turned up at the end of June.
This is in spite of excellent underlying performance in the various
businesses we own. For example, in two of our largest positions, Aviall and
M&F Worldwide, free cash flow grew in excess of 20% in the first half of
1998. Both companies are taking the appropriate measures with this free cash
flow: Aviall is buying back 10% of the company, and M&F Worldwide is rapidly
deleveraging the balance sheet. Despite these positive fundamental trends,
the stocks are selling at 8.5x and 7.5x multiples of free cash flow
respectively. Our reaction has been to materially increase our stakes in
these companies rather than purchase new businesses.
In closing, the small-cap market since the end of the second quarter has
fallen precipitously. The Russell 2000 is off almost 20% from its peak in
1998 and 8% year to date. Unfortunately, we have not been immune and the Fund
is down approximately the same amount as the index year to date, despite our
companies being at significantly cheaper valuations before the downturn
occurred. While we find this situation perplexing, we will not change our
investment approach. We believe that a concentrated portfolio consisting of
superior businesses purchased at reasonable or cheap prices is the best way
in which we can achieve superior long-term after-tax returns. We remain
grateful for your patience and support during this period.
/s/ Donald Wang
Donald Wang
Portfolio Manager
LINDNER/RYBACK
SMALL-CAP FUND
FUND PROFILE
- -------------------------------------------------------------------------------
The investment objective of this fund is long-term capital appreciation
through investments in common stocks or convertible securities of companies
with market capitalization of $750 million or less. Income is a secondary
objective.
Portfolio composition by industry
June 30, 1998
[GRAPH]
20
<PAGE> 21
<TABLE>
- -----------------------------------------------------------------------------------------------------------
LINDNER INVESTMENTS
- -----------------------------------------------------------------------------------------------------------
SCHEDULES OF INVESTMENTS - JUNE 30, 1998
<CAPTION>
Number of Shares -
Principal Amount
Name of Issuer and Title of Issue of Bonds Value
- ---------------------------------------------- ------------------- -------------------
<S> <C> <C>
LINDNER/RYBACK SMALL-CAP FUND
- -----------------------------
COMMON STOCKS (89.08%)
Asset Management (0.37%)
Lexington Global Asset Managers, Inc. <F*> 28,800 $201,600
-------------------
Consumer (4.02%)
AJL PEPS Trust 51,400 $359,800
Fairfield Communities, Inc. <F*> 95,000 1,822,813
-------------------
$2,182,613
-------------------
Distributors (14.64%)
Aviall, Inc. <F*> 206,500 $2,826,469
Hawkins Chemical, Inc. 170,000 2,040,000
Richey Electronics, Inc. <F*> 190,000 1,484,375
SED International, Inc. (formerly Southern Electronics) <F*> 10,000 81,250
SunSource, L.P. 70,000 1,522,500
-------------------
$7,954,594
-------------------
Electronic Equipment (2.81%)
Optek Technology, Inc. <F*> 79,800 $1,526,175
-------------------
Energy (8.43%)
Castle Energy Corporation 160,000 $3,120,000
Plains Resources, Inc. <F*> 81,300 1,458,319
-------------------
$4,578,319
-------------------
Food and Beverage (3.51%)
Corby Distilleries Ltd., <Ff>
Class A 27,000 $1,307,070
Class B 13,400 601,392
-------------------
$1,908,462
-------------------
Health and Beauty (1.22%)
The Stephan Company 48,600 $665,212
-------------------
Insurance (8.02%)
Cotton States Life Insurance Company 87,500 $1,246,875
Hilb, Rogal and Hamilton Company 96,100 1,501,563
<CAPTION>
Number of Shares -
Principal Amount
Name of Issuer and Title of Issue of Bonds Value
- ---------------------------------------------- ------------------- -------------------
<S> <C> <C>
Insurance (continued)
Mid Atlantic Medical Services, Inc. <F*> 140,000 $1,610,000
-------------------
$4,358,438
-------------------
Manufacturing (6.06%)
MFRI, Inc. <F*> 41,000 $348,500
Quixote Corporation 109,000 1,335,250
Transtechnology Corporation 62,700 1,610,606
-------------------
$3,294,356
-------------------
Mining (0.20%)
Uranium Resources, Inc. <F*> 50,000 $107,815
-------------------
Paper, Printing and Publishing (2.65%)
American Media, Inc., Class A <F*> 217,000 $1,437,625
-------------------
Pipeline Services (3.10%)
Kaneb Services, Inc. <F*> 310,000 $1,685,625
-------------------
Real Estate Services (5.96%)
Lexford Residental Trust <F*> 68,000 $1,300,500
Resurgence Properties, Inc. <F*> 43,900 32,925
Tanger Factory Outlet Centers, Inc. - REIT 60,000 1,901,250
-------------------
$3,234,675
-------------------
Restaurants (4.40%)
Host Marriott Services Corporation <F*> 120,000 $1,747,500
Scott's Restaurants, Inc. <F*>, <Ff> 175,200 643,373
-------------------
$2,390,873
-------------------
Retail Trade (8.90%)
Brauns Fashions Corporation <F*> 155,000 $1,724,375
Fingerhut Companies, Inc. 65,000 1,650,000
Today's Man, Inc. <F*> 600,000 1,462,500
-------------------
$4,836,875
-------------------
See Notes to Financial Statements 21
<PAGE> 22
<CAPTION>
- -----------------------------------------------------------------------------------------------------------
LINDNER INVESTMENTS
- -----------------------------------------------------------------------------------------------------------
SCHEDULES OF INVESTMENTS - JUNE 30, 1998
Number of Shares -
Principal Amount
Name of Issuer and Title of Issue of Bonds Value
- ---------------------------------------------- ------------------- -------------------
<S> <C> <C>
LINDNER/RYBACK SMALL-CAP FUND
- -----------------------------
Tobacco Products (6.83%)
M & F Worldwide Corporation (formerly Power Control
Technologies, Inc.) <F*> 315,000 $3,130,312
Schweitzer-Mauduit International, Inc. 20,000 580,000
-------------------
$3,710,312
-------------------
Utilities (Gas, Electric & Water) (7.96%)
El Paso Electric Company <F*> 177,000 $1,626,187
NRG Generating (U.S.), Inc. <F*> 189,500 2,700,375
-------------------
$4,326,562
-------------------
Total Common Stocks (Cost $42,333,155) $48,400,131
-------------------
U.S. TREASURY BILLS (4.41%)
U. S. Treasury Bills, maturing 7/2/98 to
7/23/98 (Cost $2,393,705) $2,400,000 $2,393,576
-------------------
<CAPTION>
Number of Shares -
Principal Amount
Name of Issuer and Title of Issue of Bonds Value
- ---------------------------------------------- ------------------- -------------------
<S> <C> <C>
U.S. GOVERNMENT AGENCY OBLIGATION (4.78%)
FHDN, 7/24/98 $400,000 $398,632
FMCDN, 7/10/98
(Cost $2,595,662) $2,200,000 2,197,030
-------------------
$2,595,662
-------------------
Total Investments (Cost $47,322,522) 98.27% $53,389,369
Excess of Other Assets over Liabilities 1.73% $940,915
------------------ -------------------
Net Assets 100.00% $54,330,284
================== ===================
<FN>
<F*> Non-income producing
<Ff> Denotes security primarily traded in foreign markets
REIT - Real Estate Investment Trust
FHDN - Federal Home Discount Note
FMCDN - Federal Home Loan Mortgage Corporation Discount Note
</TABLE>
22 See Notes to Financial Statements
<PAGE> 23
PERFORMANCE SUMMARY
I can remember telling you six months ago how I thought Russia, Poland and
Canada were good places to invest money. This is one period where trying to
hold what I have considered good examples of value stocks produced a very
negative return of -10.39% vs. 15.93 % for the EAFE index.
Obviously, we must do better than this. We are going to have to take into
account what the currency market is doing. You can see that the notion that a
country's money is no good is what is driving a lot of investment decisions
today and individual considerations of value are being largely ignored. While
this produces intense pain in the short run, if value exists it will most
likely surface in the end.
An important consideration is the presence of mutual funds in the US that
operate in foreign markets. Most have a capital gain/loss settlement date of
October 31st for the year. Even though there are different countries with
different fundamental conditions, for investment purposes, the American tax
system effects them all at the margin. Mainly, if something is down toward
October 31st, it will be sold for a tax loss.
After the market is through melting down, I intend to take advantage of
market inefficiencies wherever they are being created. I will continue to
accumulate shares of the Fund for myself.
/s/ Robert A. Lange
Bob Lange
Portfolio Manager
LINDNER INTERNATIONAL FUND
FUND PROFILE
- -------------------------------------------------------------------------------
This fund seeks capital appreciation through investments in common stocks
or convertible securities of companies whose principal business activities
are outside the United States. Income is a secondary objective.
Portfolio composition by country
June 30, 1998
[GRAPH]
23
<PAGE> 24
<TABLE>
- ------------------------------------------------------------------------------------------------
LINDNER INVESTMENTS
- ------------------------------------------------------------------------------------------------
SCHEDULES OF INVESTMENTS - JUNE 30, 1998
<CAPTION>
Number of Shares -
Country Principal Amount
Name of Issuer and Title of Issue of Origin of Bonds Value
- ---------------------------------- --------- ------------------ --------------
<S> <C> <C> <C>
LINDNER INTERNATIONAL FUND
- -------------------------
COMMON STOCKS (100.74%)
Communications (3.81%)
ECI Telecommunications Ltd. Israel 2,600 $98,475
--------------
Construction and Real Estate (5.93%)
Blagovno Trgovinski Center - GDR -
Rule 144A <Fr> (Acquired 6/6/97 -
5/7/98, Cost $149,435) Slovenia 16,500 $103,950
Mostostal Export Corporation Poland 32,000 49,555
--------------
$153,505
--------------
Energy (14.69%)
Bitech Petroleum Corporation <F*> Canada 69,068 $150,301
Lukoil Oil Company - ADR Russia 200 6,600
Probe Exploration, Inc. <F*> Canada 60,000 206,052
Rao Gazprom - ADR - Rule 144A <Fr>
(Acquired 10/22/96, Cost $23,625) Russia 1,500 16,969
--------------
$379,922
--------------
Financial Services (16.96%)
Bank Inicjatyw Gospodarczych Poland 87,000 $116,017
Banque Libanaise pour le Commerce SAL
GDR - Rule 144A <F*>, <Fr> (Acquired
12/11/96, Cost $47,023) Lebanon 3,985 55,989
Catalana Occidente S.A.,
Common Stock Spain 1,333 42,230
Rights expiring 9/7/98 <F*> Spain 1,333 42,230
Cie Financiere de Paribas France 800 85,610
Eesti Uhispank - GDR - Rule 144A <F*>,
<Fr> (Acquired 3/6/98 - 6/2/98, Cost
$143,625) Estonia 12,000 96,600
--------------
$438,676
--------------
<CAPTION>
Number of Shares -
Country Principal Amount
Name of Issuer and Title of Issue of Origin of Bonds Value
- ---------------------------------- --------- ------------------ --------------
<S> <C> <C> <C>
Food and Beverage (0.73%)
Foster's Brewing Group, Ltd. Australia 8,000 $18,826
--------------
Foreign Telecommunications (2.55%)
AI Uralsvyazinform - ADR <F*> Russia 11,000 $66,000
--------------
Gasoline Distribution (3.62%)
DOR Energy - GDR - Rule 144A <F*>,
<Fr> (Acquired 6/19/98, Cost
$93,600) Israel 13,000 $93,600
--------------
Healthcare (2.13%)
Slovakofarma, A.S. - GDR - Rule 144A
<F*>, <Fr> (Acquired 10/7/97, Cost
$99,000) Slovakia 10,000 $55,200
--------------
Industrial Products and Services (7.99%)
Bridgestone Corporation Japan 1,000 $23,634
Buderus AG Germany 100 49,867
FAG Kugelfischer Gerog Schafer AG Germany 2,800 41,961
Vitro, Sociedad Anonima - ADR Mexico 14,300 91,163
--------------
$206,625
--------------
Investments (3.23%)
Minorco - ADR Luxembourg 7,000 $83,563
--------------
Leisure & Entertainment (5.42%)
Grupo Anaya S.A. Spain 3,900 $140,114
--------------
Metals Processing (10.45%)
Impexmetal S.A. <F*> Poland 14,000 $104,789
Seversky Tube Works - ADR <F*> Russia 3,000 43,500
Zindart Limited - ADR <F*> Hong Kong 9,000 122,063
--------------
$270,352
--------------
24 See Notes to Financial Statements
<PAGE> 25
<CAPTION>
- ----------------------------------------------------------------------------------------------
LINDNER INVESTMENTS
- ----------------------------------------------------------------------------------------------
SCHEDULES OF INVESTMENTS - JUNE 30, 1998
Number of Shares -
Country Principal Amount
Name of Issuer and Title of Issue of Origin of Bonds Value
- ---------------------------------- --------- ------------------ --------------
<S> <C> <C> <C>
LINDNER INTERNATIONAL FUND
- --------------------------
Mining (7.42%)
Gold Reserve Corporation <F*> Canada 27,400 $52,732
IAMGOLD International African Mining
Gold Corporation <F*> Canada 24,000 61,204
Meridian Gold, Inc. <F*> Canada 10,000 21,250
Sutton Resources Ltd. <F*> Canada 10,000 56,783
--------------
$191,969
--------------
Transportation (9.78%)
Guangshen Railway Company Ltd. China 540,000 $71,782
Teekay Shipping Corporation 3,000 75,187
Transportacion Maritima Mexicana - ADR Mexico 16,000 106,000
--------------
$252,969
--------------
Utilities (Gas, Electric & Water)
(6.03%)
Irkutskenergo - ADR Russia 15,500 $84,281
Unified Energy Systems - Reg S - ADR
<F*>, <Fr> (Acquired 6/11/97 -
6/11/98, Cost $152,003) Russia 5,130 71,820
--------------
$156,101
--------------
Total Common Stocks
(Cost $2,940,367) $2,605,897
--------------
<CAPTION>
Number of Shares -
Country Principal Amount
Name of Issuer and Title of Issue of Origin of Bonds Value
- ---------------------------------- --------- ------------------ --------------
<S> <C> <C> <C>
PREFERRED STOCKS (0.10%)
Mining (0.10%)
Ashanti Goldfields Company Ltd., $.648 Ghana 1,200 $2,496
--------------
Total Preferred Stocks (Cost $0) $2,496
--------------
U.S. TREASURY BILLS (3.86%)
U. S. Treasury Bills, maturing 7/9/98
(Cost $99,898) $100,000 $99,897
--------------
Total Investments (Cost $3,040,265) 104.70% $2,708,290
Excess of Other Liabilities over Assets -4.70% ($121,685)
------------- --------------
Net Assets 100.00% $2,586,605
============= ==============
<FN>
<F*> Non-income producing
<Fr> Denotes security is restricted as to resale. The
aggregate value of restricted securities at June 30,
1998 was $494,128 which represented 19.10% of net
assets.
ADR - American Depository Receipts
GDR - Global Depository Receipts
</TABLE>
See Notes to Financial Statements 25
<PAGE> 26
PERFORMANCE SUMMARY
The Lindner High-Yield Bond Fund was launched April 13, 1998. The Fund was
started with $100,000 of capital and has grown to $1.6 million during its
first 2 1/2 months.
By applying a proprietary bond formula developed by myself and our late
founder Kurt Lindner, the Fund has invested in 19 straight high-yield bonds
across 13 industries, four convertible bonds in two separate industries and
three convertible preferred stocks in three different industries.
Clearly, this is a well-diversified Fund. Such diversification is essential
to any good bond portfolio, as industries come in and out of favor.
I intend to make 3% to 5% portfolio weightings in each name. This will allow
for faster movement in and out of new and existing holdings and require
following fewer companies.
It is my intention as Portfolio Manager to keep the portfolio's yield close
to 10%. The Fund's level 30-day portfolio and SEC yield as of this writing
was 9.806% and the total return from inception was 2.2%. This compared to the
Merrill Lynch High-Yield Bond Index total return of 1.3% for the same period.
I would like to extend a warm and prosperous welcome to all the new
shareholders of the Lindner High-Yield Bond Fund. I will make every effort to
try to provide you with a steady source of income without incurring undue
risk.
/s/ Eric E. Ryback
Eric E. Ryback
President
LINDNER HIGH-YIELD
BOND FUND
- -------------------------------------------------------------------------------
FUND PROFILE
The investment objective of this fund is to produce maximum current income.
Investments include a diversified range of high-yield, high-risk corporate
bonds and notes.
Portfolio composition by industry
June 30, 1998
[GRAPH]
26
<PAGE> 27
<TABLE>
- -----------------------------------------------------------------------------------------------------------
LINDNER INVESTMENTS
- -----------------------------------------------------------------------------------------------------------
SCHEDULES OF INVESTMENTS - JUNE 30, 1998
<CAPTION>
Number of Shares -
Principal Amount
Name of Issuer and Title of Issue of Bonds Value
- ---------------------------------------------- ------------------- -------------------
<S> <C> <C>
LINDNER HIGH-YIELD BOND FUND
- ----------------------------
PREFERRED STOCKS (13.78%)
Mining (5.19%)
Coeur d'Alene Mines Corporation, 7% convertible 8,000 $85,500
-------------------
Retail Trade (4.78%)
Cendant Corporation, 7.5% convertible 2,100 $78,619
-------------------
Telecommunications (3.81%)
Nextlink Communications, Inc., 6.50%, convertible - Rule 144A
<Fr> (Acquired 5/11/98 - 5/28/98, Cost $57,300) 1,200 $62,700
-------------------
Total Preferred Stocks (Cost $214,148) $226,819
-------------------
NON-CONVERTIBLE BONDS (71.25%)
Airline (7.67%)
Canadian Airlines Corporation, 10%, due 2005 $60,000 $60,900
Trans World Airlines, Inc., 11.375%, due 2006 - Rule 144A <Fr>
(Acquired 4/13/98 - 5/15/98, Cost $64,987) 65,000 65,406
-------------------
$126,306
-------------------
Computer and Electronic Equipment (2.97%)
Moog, Inc., 10%, due 2006 $45,000 $48,892
-------------------
Construction and Real Estate (4.83%)
Wickes, Inc., 11.625%, due 2003 $80,000 $79,600
-------------------
Energy (8.53%)
Envirodyne Industries, Inc., 10.25%, due 2001 $65,000 $65,650
TransAmerican Energy Corporation, Series B, 11.25%, due 2002 80,000 74,800
-------------------
$140,450
-------------------
<CAPTION>
Number of Shares -
Principal Amount
Name of Issuer and Title of Issue of Bonds Value
- ---------------------------------------------- ------------------- -------------------
<S> <C> <C>
Environmental Services (4.03%)
Recycling Industries, Inc., 13%, due 2005 - Rule 144A <Fr>
(Acquired 5/22/98, Cost $65,325) $65,000 $66,300
-------------------
Leisure/Entertainment (4.74%)
Trump Atlantic City Associates, 11.25%, due 2006 $80,000 $78,000
-------------------
Natural Gas Exploration & Production (3.99%)
Seven Seas Petroleum, Inc., 12.50%, due 2005 - Rule 144A <Fr>
(Acquired 5/5/98 - 5/28/98, Cost $66,500) $65,000 $65,650
-------------------
Real Estate Investment Trust (0.90%)
Mego Mortgage Corporation, 12%, due 2001 $15,000 $14,775
-------------------
Retail Trade (11.13%)
Decora Industries, Inc., 11%, due 2005 - Rule 144A <Fr>
(Acquired 4/24/98 - 5/15/98, Cost $63,554) $65,000 $63,538
Homeland Stores, Inc., 10%, due 2003 70,000 66,500
The Musicland Group, 9%, due 2003 55,000 53,212
-------------------
$183,250
-------------------
Satellite Communications (3.64%)
Iridium Operating LLC, 10.875%, due 2005 $60,000 $59,850
-------------------
Security Systems (4.42%)
Mosler, Inc., 11%, due 2003 $80,000 $72,800
-------------------
Telecommunications (7.75%)
Globalstar L.P., 11.375%, due 2004 $70,000 $68,250
USA Mobile Telecommunications Inc. II, 9.25%, due 2004 65,000 59,312
-------------------
$127,562
-------------------
See Notes to Financial Statements 27
<PAGE> 28
<CAPTION>
- -----------------------------------------------------------------------------------------------------------
LINDNER INVESTMENTS
- -----------------------------------------------------------------------------------------------------------
SCHEDULES OF INVESTMENTS - JUNE 30, 1998
Number of Shares -
Principal Amount
Name of Issuer and Title of Issue of Bonds Value
- ---------------------------------------------- ------------------- -------------------
<S> <C> <C>
LINDNER HIGH-YIELD BOND FUND
- ----------------------------
Transportation (6.65%)
Global Ocean Carriers Ltd., 10.25%, due 2007 $65,000 $58,825
Transportacion Maritima Mexicana, S.A. de C.V., 9.25%, due 2003 55,000 50,601
-------------------
$109,426
-------------------
Total Non-Convertible Bonds (Cost $1,178,755) $1,172,861
-------------------
CONVERTIBLE BONDS (8.28%)
Computer and Electronic Equipment (6.85%)
Intevac, Inc., 6.5%, due 2004 $70,000 $60,375
Network Equipment Technologies, Inc., 7.25%, due 2014 45,000 42,694
Quantum Corporation, 7%, due 2004 10,000 9,600
-------------------
$112,669
-------------------
<CAPTION>
Number of Shares -
Principal Amount
Name of Issuer and Title of Issue of Bonds Value
- ---------------------------------------------- ------------------- -------------------
<S> <C> <C>
Telecommunications (1.43%)
Metricom Inc.,
8%, due 2003 $10,000 $8,400
8%, due 2003 - Rule 144A <Fr> (Acquired 4/21/98, Cost
$17,820) 18,000 15,120
-------------------
$23,520
-------------------
Total Convertible Bonds (Cost $140,939) $136,189
-------------------
Total Investments (Cost $1,533,842) 93.31% $1,535,869
Excess of Other Assets over Liabilities 6.69% $110,154
------------------ -------------------
Net Assets 100.00% $1,646,023
================== ===================
<FN>
<Fr> Denotes security is restricted as to resale. The aggregate value of restricted
securities at June 30, 1998 was $338,714 which represented 20.58% of net
assets.
</TABLE>
28 See Notes to Financial Statements
<PAGE> 29
PERFORMANCE SUMMARY
The Bulwark Fund had a total return of -10.08% in the fiscal year ended June
30, 1998. This loss resulted from our defensive position while the stock
market continued to prosper.
Because of these results, we have slightly altered our methods in recent
months to become more effective. We continue to pursue our goal of long-term
capital appreciation through investments in undervalued securities, including
a large exposure to natural resources likely to preserve capital in times of
economic distress, and by short selling overvalued equities.
However, since the June 30 reporting date, we have reduced our exposure to
precious metals. Currently, roughly 2.4% of the Fund is in two companies
involved in the mining of precious metals, down from 7.2% on June 30. While
we continue to believe precious metals are a good hedge against inflation, we
see little evidence of inflation in the current economic environment. We have
less faith in the ability of precious metals to preserve capital in times of
low inflation, such as we are currently experiencing.
Secondly, we have shifted towards owning preferred stocks and debt. Using
methods similar to those for picking common stocks, we search for overlooked
or out-of-favor companies that offer limited downside and significant upside
potential. We buy and wait for the value of the underlying security to be
realized. During this holding period, we enjoy the relatively high dividend
or interest yields on these investments. These relatively high yields should
stabilize the price of the security. Since June 30, we have added five
positions equal to about 6.9% of assets, all of which are convertible
preferred stocks.
As of June 30, we held 26 equity positions, amounting to 50.6% of assets.
Common stocks amounted to 48.5% of assets while preferred stocks equaled 2.1%
of assets. We prefer high-quality companies in industries that are somewhat
recession-resistant, but purchase stocks only at reasonable valuations.
Our 30 short positions amounted to 36.3% of assets as of June 30. Most of our
short positions involve companies that have misled investors about their
future prospects or are facing negative fundamental business changes
unrecognized by most investors. This approach has led us to short several
companies which later restated earnings, including Transcrypt International,
Inc. and PHP Healthcare Corporation -- companies whose stock prices declined
considerably.
The remaining investments are in debt and cash. Corporate debt totaled 6.2%
of assets as of June 30.
In summary, we believe a defensive posture is justified given the high
valuations of stocks and the volatile situation regarding the "Asian crisis"
and its effect on the domestic economy. We feel we can meet our goal of
capital appreciation by shorting overvalued stocks and investing in high-
quality companies likely to be effective at preserving capital in times of
economic distress. Furthermore, we believe our shift away from precious
metals and our increased use of preferred stocks and bonds will allow us to
better meet this goal.
/s/ Eric E. Ryback /s/ Andrew Boord
Eric E. Ryback Andrew Boord
Co-Portfolio Manager Co-Portfolio Manager
LINDNER BULWARK FUND
FUND PROFILE
- -------------------------------------------------------------------------------
This non-diversified fund is designed to preserve capital in times of
economic adversity, with current income as a secondary objective. Investments
include undervalued securities and precious metals, which have historically
maintained their value when fixed income and equity markets are generally
declining.
Portfolio composition by industry
June 30, 1998
[GRAPH]
29
<PAGE> 30
<TABLE>
- -----------------------------------------------------------------------------------------------------------
LINDNER INVESTMENTS
- -----------------------------------------------------------------------------------------------------------
SCHEDULES OF INVESTMENTS - JUNE 30, 1998
<CAPTION>
Number of Shares -
Principal Amount
Name of Issuer and Title of Issue of Bonds Value
- ---------------------------------------------- ------------------- -------------------
<S> <C> <C>
LINDNER BULWARK FUND
- --------------------
COMMON STOCKS (48.49%)
Clothing (3.81%)
Pluma, Inc. <F*> 161,000 $1,076,687
-------------------
Computer and Electronic Equipment (14.29%)
Gradco Systems, Inc. <F*> 103,600 $699,300
Hand Technologies, Inc. - Rule 144A <F*>, <Fr> (Acquired
4/25/97, Cost $330,000) 528,000 330,000
Intevac, Inc. <F*> 70,000 752,500
JACO Electronics, Inc. <F*> 150,000 932,820
Periphonics Corporation <F*> 49,000 615,562
SED International Holdings, Inc. <F*> 46,000 373,750
Scientific Software Intercomp, Inc. <Fa>, <F*> 862,000 336,180
-------------------
$4,040,112
-------------------
Energy (9.04%)
Harken Energy Corporation <F*> 200,000 $962,500
Layne Christensen Company <F*> 35,000 433,125
Siem Industries, Inc., (formerly Norex Industries, Inc.) <F*> 67,700 1,159,363
-------------------
$2,554,988
-------------------
Environmental Services (0.13%)
Gundle/SLT Environmental, Inc. <F*> 8,000 $36,000
-------------------
Industrial Products and Services (1.03%)
Snap-On, Inc. <F*> 8,000 $290,000
-------------------
Leisure/Entertainment (2.17%)
The Todd-AO Corporation, Class A 59,800 $612,950
-------------------
Medical Services (0.96%)
American Physicians Service Group, Inc. <F*> 38,000 $271,939
-------------------
Mining (7.71%)
Acacia Resources Ltd. <Ff> 238,069 $253,579
Bema Gold Corporation <F*>, <Ff> 89,300 144,532
Canyon Resources Corporation <F*> 455,700 341,775
<CAPTION>
Number of Shares -
Principal Amount
Name of Issuer and Title of Issue of Bonds Value
- ---------------------------------------------- ------------------- -------------------
<S> <C> <C>
Mining (continued)
Dayton Mining Corporation <F*>, <Ff> 300,000 $193,812
Homestake Mining Company <Ff> 68,000 652,712
Uranium Resources Inc. <F*> 275,000 592,982
-------------------
$2,179,392
-------------------
Real Estate Investment Trust (1.13%)
FAC Realty Trust, Inc. <F*> 40,000 $320,000
-------------------
Retail (3.11%)
Ezcorp, Inc. - Class A <F*> 80,500 $880,469
-------------------
Tobacco Products (3.13%)
M & F Worldwide Corporation <F*> 88,900 $883,444
-------------------
Transportation (1.98%)
Simon Transportation Services, Inc. <F*> 83,800 $560,412
-------------------
Total Common Stocks ($18,880,972) $13,706,393
-------------------
PREFERRED STOCKS (2.06%)
Mining (2.06%)
Westmoreland Coal Company, 8.50%, voting convertible <Fa>, <F#> 119,300 $581,588
-------------------
Total Preferred Stocks ($928,141) $581,588
-------------------
NON-CONVERTIBLE BONDS (1.56%)
Mining (1.56%)
South American Gold and Copper Company, Ltd., 10%, due 1998 -
Rule 144A <Ff>, <Fr> (Acquired 7/10/96, Cost $949,251) CAD 1,300,000 $442,027
-------------------
Total Non-Convertible Bonds (Cost $949,252) $442,027
-------------------
30 See Notes to Financial Statements
<PAGE> 31
<CAPTION>
- -----------------------------------------------------------------------------------------------------------
LINDNER INVESTMENTS
- -----------------------------------------------------------------------------------------------------------
SCHEDULES OF INVESTMENTS - JUNE 30, 1998
Number of Shares -
Principal Amount
Name of Issuer and Title of Issue of Bonds Value
- ---------------------------------------------- ------------------- -------------------
<S> <C> <C>
LINDNER BULWARK FUND
- --------------------
CONVERTIBLE BONDS (4.62%)
Mining (4.62%)
Uranium Resources Inc., 6.5% Senior Secured, due 2000 - Rule
144A <Fr> (Acquired 5/25/95 - 6/25/97, Cost $1,956,450) $1,500,000 $1,305,000
-------------------
Total Convertible Bonds (Cost $1,521,421) $1,305,000
-------------------
PUT OPTIONS (0.06%) Contracts
------------------
Computer Learning Centers, Inc. - Common Stock 250 $15,625
-------------------
Total Put Options ($179,125) $15,625
-------------------
U. S. TREASURY BILLS (10.58%)
U. S. Treasury Bills, maturing 7/23/98
(Cost $2,991,479) $3,000,000 $2,991,273
-------------------
Total Investments (Cost $25,830,390) 67.37% $19,041,906
Cash Deposits with Broker for Securities Sold Short 26.84% $7,587,159
Receivable from Brokers for Securities Sold Short 42.96% $12,142,516
Securities Sold Short -36.28% ($10,255,625)
Excess of Other Liabilities over Assets -0.89% ($251,067)
------------------ -------------------
Net Assets 100.00% $28,264,889
================== ===================
<CAPTION>
Number of Shares -
Principal Amount
Name of Issuer and Title of Issue of Bonds Value
- ---------------------------------------------- ------------------- -------------------
<S> <C> <C>
SCHEDULE OF SECURITIES SOLD SHORT - COMMON STOCKS
Action Performance Companies, Inc. 23,000 $740,313
Advanced Heath Corporation 6,000 33,000
American Technology Corporation 26,300 266,288
Ashworth, Inc. 25,000 346,875
Bally Total Fitness Holding Corporation 11,000 396,000
Blythe Industries, Inc. 7,800 259,350
Brightpoint, Inc. 15,000 217,500
Catalina Marketing Corporation 6,100 316,819
Cerner Corporation 8,000 226,500
DAOU Sytems, Inc. 35,900 821,212
dELiA*s Inc. 29,300 457,812
ENCAD, Inc. 19,500 265,687
Homecom Communications, Inc. 25,000 100,000
Integrated Health Services, Inc. 10,300 386,250
Intelligroup, Inc. 20,000 355,000
Micrel, Inc. 16,000 520,000
Microchip Technology, Inc. 9,900 258,638
Miller Industries, Inc. 87,600 678,900
PHP Healthcare Corporation 21,000 154,875
Radiant Systems, Inc. 8,800 127,600
Rexall Sundown, Inc. 8,000 282,000
Signature Resorts, Inc. 10,000 165,000
Smarttalk Teleservices, Inc. 39,000 567,938
SOLA International, Inc. 11,100 362,831
STB Systems, Inc. 36,450 455,625
Sun Healthcare Group, Inc. 10,000 146,250
The North Face, Inc. 20,000 480,000
Transcrypt International, Inc. 8,500 28,687
TRO Learning, Inc. 10,000 86,875
Ventana Medical Systems, Inc. 26,850 751,800
-------------------
$10,255,625
===================
<FN>
<F*> Non-income producing
<Fa> Denotes security is affiliated (see Note 6)
<Ff> Denotes security primarily traded in foreign markets
<Fr> Denotes security is restricted as to resale. The aggregate value of restricted securities at June 30,
1998 was $2,077,027 which represented 7.35% of net assets.
<F#> Dividends are in arrears
</TABLE>
See Notes to Financial Statements 31
<PAGE> 32
MANAGEMENT
COMMENT
This fund invests in short-term debt instruments issued or backed by the
United States government. The intent of the Fund is to provide investors with
a highly liquid and highly stable asset while generating a moderate level of
current income.
To achieve these goals, management of the Fund's assets consists of two
components within the portfolio. The first component comprises 42.84% of Fund
assets and employs repurchase agreements with a daily reset. This provides
substantial liquidity to investors while adjusting to the daily fluctuations
in interest rates.
The second component comprises the remaining 57.15% of the assets and
consists of United States Treasury Bills, Notes and debt issued by the
appropriate government agencies. This portion of the portfolio is invested in
obligations whose final maturity is less than thirteen months.
The Fund Manager seeks to add value for shareholders through the management
of the mix between overnight vehicles and the structured maturity portfolio.
In addition, the manager can skew the average maturity of the total portfolio
either longer or shorter, in terms of average maturity, based on the forecast
movement of interest rates.
During fiscal 1998, we maintained an average maturity that was consistently
longer than the average in our peer group. The Fund's weighted average
maturity at year end was 61.15 days versus the peer group at 52. This
strategy was the result of our forecast for stable to declining interest
rates and no further tightening of monetary policy on the part of the Federal
Reserve Bank. We continue to believe that this is the appropriate investment
course to follow in light of the benign inflation environment and current
weakness in the broad stock market.
/s/ Eric E. Ryback
Eric E. Ryback
President
LINDNER GOVERNMENT
MONEY MARKET FUND
FUND PROFILE
- -------------------------------------------------------------------------------
This very low-risk fund invests in short-term debt securities guaranteed by
the U.S. government or its agencies. Investors can expect a moderate level of
current income, with liquidity and stability of capital. The fund is neither
insured nor guaranteed by the U.S. Government, and there can be no assurance
that it will be able to maintain a stable net asset value.
32
<PAGE> 33
<TABLE>
- -----------------------------------------------------------------------------------------------------------
LINDNER INVESTMENTS
- -----------------------------------------------------------------------------------------------------------
SCHEDULES OF INVESTMENTS - JUNE 30, 1998
<CAPTION>
Number of Shares -
Principal Amount
Name of Issuer and Title of Issue of Bonds Value
- ---------------------------------------------- ------------------- -------------------
<S> <C> <C>
LINDNER GOVERNMENT MONEY MARKET FUND
- ------------------------------------
U.S. GOVERNMENT AGENCY SECURITIES (72.45%)
FFCB, 6.45%, 12/28/98 $200,000 $200,823
FFCB, 5.60%, 1/29/99 500,000 500,000
FFCB, 5.30%, 2/2/99 500,000 499,453
FHDN, 7/10/98 19,300,000 19,273,511
FHLB, 9.25%, 11/25/98 130,000 131,745
FHLB, 5.75%, 12/3/98 785,000 784,474
FHLB, 5.385%, 1/22/99 100,000 99,838
FHLB, 6.22%, 3/15/99 100,000 100,397
FHLB, 5.50%, 3/26/99 205,000 204,725
FHLB, 5.63%, 4/9/99 500,000 500,032
FHLB, 6.60%, 4/13/99 15,000 15,105
FHLB, 5.70%, 4/15/99 655,000 654,833
FHLB, 5.605%, 4/27/99 120,000 119,956
FHLB, 5.705%, 5/5/99 500,000 500,198
FHLB, 5.777%, 5/14/99 1,000,000 1,000,151
FHLMC, 4.77%, 9/14/98 100,000 99,791
FHLMC, 4.95%, 9/9/98 500,000 499,223
FHLMC, 5.18%, 11/18/98 25,000 24,929
FHLMC, 5.505%, 3/12/99 500,000 499,707
FHLMC, float, 5/19/99 1,000,000 999,460
FNMA, 5.10%, 7/22/98 170,000 169,921
FNMA, 9.40%, 8/10/98 255,000 255,938
FNMA, 5.35%, 8/12/98 450,000 449,741
FNMA, 4.80%, 10/15/98 250,000 249,316
FNMA, 5.42%, 11/2/98 360,000 359,574
FNMA, 5.76%, 11/4/98 500,000 500,038
FNMA, 7.05%, 12/10/98 460,000 462,368
FNMA, 5.23%, 2/18/99 350,000 349,421
FNMA, 5.37%, 2/26/99 500,000 499,337
FNMA, 8.70%, 6/10/99 605,000 621,471
SLMA, 5.74%, 12/17/98 500,000 500,111
-------------------
$31,125,587
-------------------
<FN>
FFCB - Federal Farm Credit Bank
FHDN - Federal Home Discount Note
FHLB - Federal Home Loan Bank
<CAPTION>
Number of Shares -
Principal Amount
Name of Issuer and Title of Issue of Bonds Value
- ---------------------------------------------- ------------------- -------------------
<S> <C> <C>
U.S. TREASURY NOTES (0.04%)
TGR, Series T23, 11/15/98 $20,000 $19,580
-------------------
TEMPORARY CASH INVESTMENTS (25.96%)
Repurchase Agreements
(Collateralized by U.S. Government Agency Obligations)
Bear Stearns Corporation dated 6/30/98, 5.80%, due 7/1/98 $1,600,000 $1,600,000
Dean Witter Reynolds dated 6/30/98, 5.85%, due 7/1/98 1,600,000 1,600,000
Donaldson, Lufkin & Jenrette Corporation dated 6/30/98, 5.77%,
due 7/1/98 1,600,000 1,600,000
Merrill Lynch and Company, Inc. dated 6/30/98, 6.10%, due
7/1/98 1,600,000 1,600,000
Swiss Bank Corporation dated 6/30/98, 5.80%, due 7/1/98 4,752,000 4,752,000
-------------------
$11,152,000
-------------------
Total Investments (Cost $42,297,167) 98.45% $42,297,167
Excess of Other Assets over Liabilities 1.55% $665,266
-------------------
Net Assets 100.00% $42,962,433
===================
<FN>
FHLMC - Federal Home Loan Mortgage Corporation
FNMA - Federal National Mortgage Association
SLMA - Student Loan Marketing Association
TGR - Treasury Income Growth Receipts
</TABLE>
See Notes to Financial Statements 33
<PAGE> 34
<TABLE>
- ----------------------------------------------------------------------------------------------------------------
LINDNER INVESTMENTS
- ----------------------------------------------------------------------------------------------------------------
STATEMENTS OF OPERATIONS
FOR THE PERIODS ENDED JUNE 30, 1998
<CAPTION>
LINDNER GROWTH FUND LINDNER DIVIDEND FUND
------------------- ---------------------
<S> <C> <C>
INVESTMENT INCOME
Income:
Dividends
Unaffiliated issuers (net of withholding taxes of
$144,882, $330,645, $5,748, $47,765, $4,403 and $0,
respectively) $11,367,717 $77,498,743
Affiliated issuers (Non-controlled) 2,689,921 1,165,190
Amortization 6,391,531 4,233,996
Interest (net of withholding taxes of $8,599, $85,000, $0,
$0, $10, and $168, respectively) 2,703,942 40,521,482
---------------- -----------------
Total income 23,153,111 123,419,411
---------------- -----------------
Expenses:
Management fees (Note 3) 4,500,581 9,220,306
Registration and regulatory fees 29,204 36,507
Professional fees 176,258 142,563
Custodian fees 225,202 161,544
Transfer agent fees (Note 3) 500,165 683,602
Shareholder communications 227,972 307,067
Organizational expense (Note 4) -- --
Other expenses 244,355 346,976
12b-1 fees - Institutional shares 1,741 6,211
---------------- -----------------
Total expenses 5,905,478 10,904,776
Fees paid indirectly (Note 6) (42,198) (58,793)
---------------- -----------------
Net expenses 5,863,280 10,845,983
---------------- -----------------
Net investment income/(loss) 17,289,831 112,573,428
---------------- -----------------
REALIZED AND UNREALIZED GAIN (LOSS) FROM INVESTMENTS AND
FOREIGN CURRENCY TRANSACTIONS:
Net realized gain on investments of unaffiliated issuers 145,452,804 65,182,408
Net realized loss on investments of affiliated issuers
(Non-controlled) (10,416,412) (11,186,209)
Net realized loss on securities sold short -- (1,125,085)
Net realized gain (loss) on foreign currency transactions (15,694) 4,119
---------------- -----------------
Net realized gain on investments and foreign currency
transactions 135,020,698 52,875,233
---------------- -----------------
Change in unrealized appreciation on investments (125,655,894) 84,477,668
Change in unrealized appreciation on translation of assets and
liabilities in foreign currencies 663 (1,481)
---------------- -----------------
Change in unrealized appreciation on investments and
translation of assets and liabilities in foreign currencies (125,655,231) 84,476,187
---------------- -----------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM
OPERATIONS $26,655,298 $249,924,848
================ =================
<FN>
<F1> Operations commenced on April 13, 1998
34 See Notes to Financial Statements
<PAGE> 35
<CAPTION>
- ----------------------------------------------------------------------------------------------------------------
LINDNER INVESTMENTS
- ----------------------------------------------------------------------------------------------------------------
STATEMENTS OF OPERATIONS
FOR THE PERIODS ENDED JUNE 30, 1998
LINDNER/RYBACK LINDNER LINDNER HIGH-YIELD
LINDNER UTILITY FUND SMALL-CAP FUND INTERNATIONAL FUND BOND FUND<F1>
-------------------- -------------- ------------------ -------------------
<S> <C> <C> <C> <C>
INVESTMENT INCOME
Income:
Dividends
Unaffiliated issuers (net of withholding
taxes of $144,882, $330,645, $5,748,
$47,765, $4,403 and $0, respectively) $1,058,711 $580,514 $35,665 $2,407
Affiliated issuers (Non-controlled) -- -- -- --
Amortization 69,543 324,034 5,831 3,396
Interest (net of withholding taxes of
$8,599, $85,000, $0, $0, $10, and $168,
respectively) 271,121 220 217 17,840
-------------- -------------- ------------- -----------
Total income 1,399,375 904,768 41,713 23,643
-------------- -------------- ------------- -----------
Expenses:
Management fees (Note 3) 313,257 315,917 37,849 2,025
Registration and regulatory fees 21,337 21,981 21,140 --
Professional fees 5,256 3,825 810 --
Custodian fees 9,315 2,922 8,825 22
Transfer agent fees (Note 3) 27,081 24,340 4,496 385
Shareholder communications 12,680 12,224 1,982 53
Organizational expense (Note 4) 6,566 5,917 7,278 684
Other expenses 13,207 8,566 2,462 --
12b-1 fees - Institutional shares 82 469 -- --
-------------- -------------- ------------- -----------
Total expenses 408,781 396,161 84,842 3,169
Fees paid indirectly (Note 6) (1,406) (1,619) (70) (9)
-------------- -------------- ------------- -----------
Net expenses 407,375 394,542 84,772 3,160
-------------- -------------- ------------- -----------
Net investment income/(loss) 992,000 510,226 (43,059) 20,483
-------------- -------------- ------------- -----------
REALIZED AND UNREALIZED GAIN (LOSS) FROM
INVESTMENTS AND FOREIGN CURRENCY TRANSACTIONS:
Net realized gain on investments of
unaffiliated issuers 5,763,483 2,072,221 74,886 3,609
Net realized loss on investments of affiliated
issuers (Non-controlled) -- -- -- --
Net realized loss on securities sold short -- -- -- --
Net realized gain (loss) on foreign currency
transactions (248) -- (905) --
-------------- -------------- ------------- -----------
Net realized gain on investments and foreign
currency transactions 5,763,235 2,072,221 73,981 3,609
-------------- -------------- ------------- -----------
Change in unrealized appreciation on investments (375,347) 1,698,097 (816,750) 2,027
Net unrealized depreciation on translation of
assets and liabilities in foreign currencies -- -- (21) --
-------------- -------------- ------------- -----------
Net unrealized appreciation (depreciation) on
investments and translation of assets and
liabilities in foreign currencies (375,347) 1,698,097 (816,771) 2,027
-------------- -------------- ------------- -----------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING
FROM OPERATIONS $6,379,888 $4,280,544 ($785,849) $26,119
============== ============== ============= ===========
<FN>
<F1> Operations commenced on April 13, 1998
</TABLE>
See Notes to Financial Statements 35
<PAGE> 36
<TABLE>
- ----------------------------------------------------------------------------------------------------------------
LINDNER INVESTMENTS
- ----------------------------------------------------------------------------------------------------------------
STATEMENT OF OPERATIONS
FOR THE YEAR ENDED JUNE 30, 1998
<CAPTION>
LINDNER BULWARK FUND
--------------------
<S> <C>
INVESTMENT INCOME
Income:
Dividends
Unaffiliated issuers (net of withholding taxes of $602) $10,199
Amortization 292,502
Interest 986,767
----------------------
Total income 1,289,468
----------------------
Expenses:
Management fees (Note 3) 443,278
Registration and regulatory fees 20,167
Dividend expense - short sales 3,704
Professional fees 18,880
Custodian fees 849
Transfer agent fees (Note 3) 24,616
Shareholder communications 11,690
Organizational expense (Note 4) 12,742
Other expenses 12,394
12b-1 fees - Institutional shares 400
----------------------
Total expenses 548,720
Fees paid indirectly (Note 6) (1,188)
----------------------
Net expenses 547,532
----------------------
Net investment income 741,936
----------------------
REALIZED AND UNREALIZED GAIN (LOSS) FROM INVESTMENTS AND
FOREIGN CURRENCY TRANSACTIONS:
Net realized loss on investments of unaffiliated issuers (1,988,860)
Net realized loss on investments of affiliated issuers
(Non-controlled) (783,563)
Net realized loss on securities sold short (3,646,739)
Net realized loss on option transactions (7,265,063)
Net realized loss on foreign currency transactions (2,257)
----------------------
Net realized loss on investments and foreign currency
transactions (13,686,482)
----------------------
Change in unrealized appreciation on investments 5,776,187
Net unrealized appreciation on securities sold short 1,842,662
Net unrealized depreciation on options (543,500)
Change in unrealized appreciation on translation of assets and
liabilities in foreign currencies (137)
----------------------
Change in unrealized appreciation on investments and translation
of assets and liabilities in foreign currencies 7,075,212
----------------------
NET DECREASE IN NET ASSETS RESULTING FROM OPERATIONS ($5,869,334)
======================
</TABLE>
36 See Notes to Financial Statements
<PAGE> 37
<TABLE>
- ---------------------------------------------------------------------------------------------------------------
LINDNER INVESTMENTS
- ---------------------------------------------------------------------------------------------------------------
STATEMENT OF OPERATIONS
FOR THE YEAR ENDED JUNE 30, 1998
<CAPTION>
LINDNER GOVERNMENT
MONEY MARKET FUND
------------------
<S> <C>
INVESTMENT INCOME
Interest $2,305,918
--------------
EXPENSES:
Administrator fees (Note 3) 76,421
Management fees (Note 3) 61,946
Registration and regulatory fees 26,754
Shareholder communications 14,848
Transfer agent fees (Note 3) 13,085
Organizational expense (Note 4) 4,637
Custodian expense 2,508
Other expenses 4,594
--------------
Total expenses 204,793
Fees paid indirectly (Note 6) (1,148)
--------------
NET EXPENSES 203,645
--------------
NET INVESTMENT INCOME $2,102,273
==============
</TABLE>
<TABLE>
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEAR ENDED JUNE 30, 1998
AND THE PERIOD ENDED JUNE 30, 1997
<CAPTION>
LINDNER GOVERNMENT MONEY MARKET FUND
----------------------------------------
JUNE 30, 1998 JUNE 30, 1997<F1>
-------------------- ------------------
<S> <C> <C>
INCREASE IN NET ASSETS:
Net investment income $2,102,273 $1,835,374
-------------------- --------------------
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income (2,102,273) (1,835,374)
-------------------- --------------------
FUND SHARES TRANSACTIONS:
Net increase in net assets resulting from fund shares
transactions (Note 7) 3,746,289 39,216,144
-------------------- --------------------
TOTAL INCREASE IN NET ASSETS 3,746,289 39,216,144
Net Assets at the Beginning of the Period 39,216,144 0
-------------------- --------------------
Net Assets at the End of the Period $42,962,433 $39,216,144
==================== ====================
<FN>
<F1> Operations commenced on July 6, 1996
</TABLE>
See Notes to Financial Statements 37
<PAGE> 38
<TABLE>
- ---------------------------------------------------------------------------------------------------------
LINDNER INVESTMENTS
- ---------------------------------------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE PERIODS ENDED JUNE 30, 1998
AND JUNE 30, 1997
<CAPTION>
LINDNER GROWTH FUND LINDNER DIVIDEND FUND
-------------------------- --------------------------
June 30, June 30, June 30, June 30,
1998 1997 1998 1997
-------- -------- -------- --------
<S> <C> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
OPERATIONS:
Net investment income (loss) $17,289,831 $19,791,890 $112,573,428 $127,128,085
Net realized gain on
investments and foreign
currency transactions 135,020,698 164,350,300 52,875,233 142,456,950
Net increase (decrease) in
unrealized appreciation on
investments and translation
of assets and liabilities in
foreign currencies (125,655,231) (10,309,030) 84,476,187 (87,961,498)
----------------- ----------------- ----------------- -----------------
Net Increase (Decrease) in
Net Assets 26,655,298 173,833,160 249,924,848 181,623,537
----------------- ----------------- ----------------- -----------------
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income:
Investors shares (17,507,539) (20,932,704) (104,805,174) (131,109,911)
Institutional shares (11,745) (235) (148,548) (64,347)
From net realized gain on
investments and foreign
currency transactions:
Investors shares (181,608,041) (166,339,554) (152,584,398) (62,624,754)
Institutional shares (131,660) (1,972) (206,827) (10,487)
----------------- ----------------- ----------------- -----------------
Net decrease in net assets from
distributions to shareholders (199,258,985) (187,274,465) (257,744,947) (193,809,499)
----------------- ----------------- ----------------- -----------------
FUND SHARE TRANSACTIONS (NOTE 7):
Investors shares (319,448,363) 62,327,472 (392,674,791) (263,821,666)
Institutional shares 420,275 95,895 796,552 1,979,699
----------------- ----------------- ----------------- -----------------
Net Increase (Decrease) in
Fund Share Transactions (319,028,088) 62,423,367 (391,878,239) (261,841,967)
----------------- ----------------- ----------------- -----------------
TOTAL INCREASE (DECREASE) IN NET
ASSETS (491,631,775) 48,982,062 (399,698,338) (274,027,929)
Net Assets at the Beginning of the
Period 1,495,076,391 1,446,094,329 2,018,905,533 2,292,933,462
----------------- ----------------- ----------------- -----------------
Net Assets at the End of the Period $1,003,444,616 $1,495,076,391 $1,619,207,195 $2,018,905,533
================= ================= ================= =================
Undistributed Net Investment Income
(Loss) Included in Net Assets at
the End of the Period $9,480,871 $9,710,325 $5,814,077 ($1,805,630)
================= ================= ================= =================
<FN>
<F1> Operations commenced on April 13, 1998
38 See Notes to Financial Statements
<PAGE> 39
<CAPTION>
- ---------------------------------------------------------------------------------------------------------
LINDNER INVESTMENTS
- ---------------------------------------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE PERIODS ENDED JUNE 30, 1998
AND JUNE 30, 1997
LINDNER/RYBACK
LINDNER UTILITY FUND SMALL-CAP FUND
-------------------------- --------------------------
June 30, June 30, June 30, June 30,
1998 1997 1998 1997
-------- -------- -------- --------
<S> <C> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
OPERATIONS:
Net investment income (loss) $992,000 $1,086,682 $510,226 $72,833
Net realized gain on
investments and foreign
currency transactions 5,763,235 2,371,071 2,072,221 1,324,888
Net increase (decrease) in
unrealized appreciation on
investments and translation
of assets and liabilities in
foreign currencies (375,347) 1,512,781 1,698,097 2,624,124
----------------- ----------------- ----------------- -----------------
Net Increase (Decrease) in
Net Assets 6,379,888 4,970,534 4,280,544 4,021,845
----------------- ----------------- ----------------- -----------------
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income:
Investors shares (977,050) (1,156,654) (204,160) (26,731)
Institutional shares (397) (2,247) (910) --
From net realized gain on
investments and foreign
currency transactions:
Investors shares (2,523,984) (36,612) (1,478,918) --
Institutional shares (439) (246) (8,066) --
----------------- ----------------- ----------------- -----------------
Net decrease in net assets from
distributions to shareholders (3,501,870) (1,195,759) (1,692,054) (26,731)
----------------- ----------------- ----------------- -----------------
FUND SHARE TRANSACTIONS (NOTE 7):
Investors shares (6,692,877) 10,645,924 26,792,123 10,705,810
Institutional shares (47,963) 44,337 139,307 150
----------------- ----------------- ----------------- -----------------
Net Increase (Decrease) in
Fund Share Transactions (6,740,840) 10,690,261 26,931,430 10,705,960
----------------- ----------------- ----------------- -----------------
TOTAL INCREASE (DECREASE) IN NET
ASSETS (3,862,822) 14,465,036 29,519,920 14,701,074
Net Assets at the Beginning of the
Period 46,763,916 32,298,880 24,810,363 10,109,289
----------------- ----------------- ----------------- -----------------
Net Assets at the End of the Period $42,901,094 $46,763,916 $54,330,283 $24,810,363
================= ================= ================= =================
Undistributed Net Investment Income
(Loss) Included in Net Assets at
the End of the Period $46,169 $31,617 $310,592 $5,434
================= ================= ================= =================
<FN>
<F1> Operations commenced on April 13, 1998
<CAPTION>
LINDNER HIGH-YIELD
LINDNER INTERNATIONAL FUND BOND FUND
-------------------------- ------------------
June 30, June 30, June 30,
1998 1997 1998<F1>
-------- -------- --------
<S> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
OPERATIONS:
Net investment income (loss) ($43,059) ($3,525) $20,483
Net realized gain on
investments and foreign
currency transactions 73,981 84,657 3,609
Net increase (decrease) in
unrealized appreciation on
investments and translation
of assets and liabilities in
foreign currencies (816,771) 391,577 2,027
----------------- ----------------- -----------------
Net Increase (Decrease) in
Net Assets (785,849) 472,709 26,119
----------------- ----------------- -----------------
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income:
Investors shares -- (281) (19,008)
Institutional shares -- -- (2)
From net realized gain on
investments and foreign
currency transactions:
Investors shares (81,079) (27,129) --
Institutional shares (8) (2) --
----------------- ----------------- -----------------
Net decrease in net assets from
distributions to shareholders (81,087) (27,412) (19,010)
----------------- ----------------- -----------------
FUND SHARE TRANSACTIONS (NOTE 7):
Investors shares (1,257,243) 3,063,117 1,638,763
Institutional shares 7 383 151
----------------- ----------------- -----------------
Net Increase (Decrease) in
Fund Share Transactions (1,257,236) 3,063,500 1,638,914
----------------- ----------------- -----------------
TOTAL INCREASE (DECREASE) IN NET
ASSETS (2,124,172) 3,508,797 1,646,023
Net Assets at the Beginning of the
Period 4,710,777 1,201,980 --
----------------- ----------------- -----------------
Net Assets at the End of the Period $2,586,605 $4,710,777 $1,646,023
================= ================= =================
Undistributed Net Investment Income
(Loss) Included in Net Assets at
the End of the Period ($46,539) ($3,480) $1,472
================= ================= =================
</TABLE>
See Notes to Financial Statements 39
<PAGE> 40
<TABLE>
- -------------------------------------------------------------------------------
LINDNER INVESTMENTS
STATEMENT OF CHANGES IN NET ASSETS
FOR THE YEARS ENDED JUNE 30, 1998
AND JUNE 30, 1997
<CAPTION>
LINDNER BULWARK FUND
-------------------------
June 30, June 30,
1998 1997
-------- --------
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
OPERATIONS:
Net investment income $741,936 $3,056,218
Net realized loss on
investments and foreign
currency transactions (13,686,482) (366,095)
Net increase (decrease) in
unrealized appreciation on
investments and translation
of assets and liabilities in
foreign currencies 7,075,212 (20,902,706)
---------------- ----------------
Net Decrease in Net Assets (5,869,334) (18,212,583)
---------------- ----------------
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income:
Investors shares (2,703,161) (1,311,535)
Institutional shares -- (28,351)
From net realized gain on
investments and foreign
currency transactions:
Investors shares -- --
Institutional shares -- --
---------------- ----------------
Net decrease in net assets from
distributions to shareholders (2,703,161) (1,339,886)
---------------- ----------------
FUND SHARE TRANSACTIONS (NOTE 7):
Investors shares (31,774,601) 25,436,861
Institutional shares (1,468,360) 1,938,107
---------------- ----------------
Net Increase (Decrease) in
Fund Share Transactions (33,242,961) 27,374,968
---------------- ----------------
TOTAL INCREASE (DECREASE) IN NET
ASSETS (41,815,456) 7,822,499
Net Assets at the Beginning of the
Period 70,080,345 62,257,846
---------------- ----------------
Net Assets at the End of the Period $28,264,889 $70,080,345
================ ================
Undistributed Net Investment Income
Included in Net Assets at the End
of the Period $263,514 $2,224,739
================ ================
</TABLE>
40 See Notes to Financial Statements
<PAGE> 41
- -------------------------------------------------------------------------------
LINDNER INVESTMENTS
- -------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS
1. Organization and Significant Accounting Policies
Lindner Investments, a Massachusetts business trust (the "Trust"), is
registered under the Investment Company Act of 1940, as amended, as an
open-end management investment company. Eight series of shares are
currently issued by the Trust: (1) Lindner Growth Fund, (2) Lindner
Dividend Fund, (3) Lindner Utility Fund, (4) Lindner/Ryback Small-Cap Fund,
(5) Lindner Bulwark Fund, (6) Lindner International Fund, (7) Lindner
Government Money Market Fund, and (8) Lindner High-Yield Bond Fund
(collectively, the "Funds"). The Lindner Growth, Lindner Dividend,
Lindner Utility, Lindner/Ryback Small-Cap, Lindner Bulwark, Lindner
International and Lindner High-Yield Bond Funds offer both Investor and
Institutional classes of shares. Investor shares are sold without a 12b-1
fee. Institutional shares are sold with a 12b-1 fee. Institutional shares
sold have their own distribution/administrative service plan and certain
expenses are directly allocated to that class.
The following is a summary of significant accounting policies followed by
the Funds.
Security Valuation
The Lindner Growth, Lindner Dividend, Lindner Utility, Lindner/Ryback
Small-Cap, Lindner Bulwark, Lindner International and Lindner
High-Yield Bond Funds value investments (including options in the
Lindner Bulwark Fund) in securities traded on a national securities
exchange or in the NASDAQ Stock Market at the last reported sales price
as of the close of the New York Stock Exchange; securities traded in
the over-the-counter market and listed securities for which no sale was
reported on the day are valued at the mean between the last reported
bid and asked prices. The value of foreign securities is translated
from the local currency into U.S. dollars at the rate of exchange
prevailing on the valuation date. When market quotes are not readily
available, such securities are valued at fair value as determined in
good faith by the Board of Trustees.
The Lindner Government Money Market Fund Values investment securities
using 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, which approximates current value.
Investment Income
Dividend income is recognized on the ex-dividend date. Interest income
is recognized on the accrual basis. Dividend and interest income is
recorded net of foreign taxes. For the Lindner Government Money Market
Fund, premiums and discounts, if any, on securities purchases are
amortized over the life of the respective securities.
Foreign Currency Translation
The books and records of the Funds are maintained in U.S. dollars as
follows: (1) the foreign currency market value of investment securities
is translated at the current exchange rates; and (2) purchases, sales,
income, and expenses are translated at the rate of exchange prevailing
on the respective dates of such transactions.
Reported net realized foreign currency gains or losses arise from
currency gains or losses realized between the trade and settlement
dates on securities transactions, the difference between the amounts of
dividends, interest, and foreign withholding taxes recorded on the
Funds' books, and the U.S. dollar equivalent of the amounts actually
received or paid. Net unrealized foreign currency gains or losses arise
from changes in the value of assets and liabilities other than
investments in securities, resulting from changes in the exchange rate
between transaction recording dates and period end.
41
<PAGE> 42
- -------------------------------------------------------------------------------
LINDNER INVESTMENTS
- -------------------------------------------------------------------------------
1. Organization and Significant Accounting Policies (continued)
Income Taxes
It is the policy of the Funds to distribute all taxable income to
shareholders and to otherwise continue to qualify as a regulated
investment company under provisions of the Internal Revenue Code.
Accordingly, no provision has been made for federal or state taxes.
Repurchase Agreements
The Lindner Government Money Market Fund may invest in 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 its 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 value of the repurchase
agreement.
Short Sales
The Lindner Bulwark series may invest in short sales of securities in
order to profit from declines in stock prices. When a Fund engages in a
short sale, an amount equal to the proceeds received by the Fund is
reflected as an asset and equivalent liability. The amount of the
liability is subsequently marked to market to reflect the market value
of the short sale. The Fund maintains a segregated account of
securities and cash as collateral for the short sales. The Fund is
exposed to market risk based on the amount, if any, that the market
value of the stock exceeds the proceeds received. Other Funds may
engage in short sales of securities if they own or have the right to
acquire, without the payment of further consideration, an approximately
equal amount of such securities ("short sales against the box").
Dividends and Distributions to Shareholders
The Lindner Government Money Market Fund declares dividends daily from
the total of net investment income on portfolio securities, and
distributes monthly. The Lindner Growth, Lindner Bulwark,
Lindner/Ryback Small-Cap, and Lindner International Funds declare
annual dividends from net investment income in December, following the
end of the fiscal year for these funds. The Lindner Dividend, Lindner
Utility, and Lindner High-Yield Bond Funds distribute substantially all
of their net investment income through the payment of quarterly
dividends generally declared in March, June, September, and December.
Net realized capital gains, if any, will be distributed by all Funds in
December, following the end of the fiscal year for these funds.
Designation of sources of 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. Dividends and distributions to shareholders
are recorded on the ex-dividend date.
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 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.
42
<PAGE> 43
- -------------------------------------------------------------------------------
LINDNER INVESTMENTS
- -------------------------------------------------------------------------------
1. Organization and Significant Accounting Policies (continued)
Allocation of Income, Expenses and Gains and Losses
The Funds allocate income, expenses (other than class specific
expenses) and gains and losses daily to each class of shares based upon
the relative proportion of shares represented by each class. Operating
expenses directly attributable to a specific class are charged against
the operation of that class.
2. Investment Transactions
For the periods ended June 30, 1998, aggregate purchases and sales of
investment securities, other than options, securities sold short, U.S.
Government Securities, and short-term obligations were as follows:
<TABLE>
<CAPTION>
Purchases Sales
------------ --------------
<S> <C> <C>
LINDNER GROWTH FUND $541,888,724 $ 917,934,704
LINDNER DIVIDEND FUND 899,009,434 1,298,841,552
LINDNER UTILITY FUND 43,262,060 51,285,093
LINDNER/RYBACK
SMALL-CAP FUND 33,148,792 9,472,028
LINDNER INTERNATIONAL FUND 1,566,297 2,680,603
LINDNER HIGH-YIELD BOND FUND 1,590,957 61,600
LINDNER BULWARK FUND 14,147,578 28,113,848
</TABLE>
For the period ended June 30, 1998, aggregate purchases and sales of U.S.
Government securities were as follows:
<TABLE>
<CAPTION>
Purchases Sales
------------ --------------
<S> <C> <C>
LINDNER GROWTH FUND $987,846,630 $1,106,974,340
LINDNER DIVIDEND FUND 607,627,054 736,682,058
LINDNER UTILITY FUND 30,167,983 30,323,546
LINDNER/RYBACK
SMALL-CAP FUND 87,134,421 85,961,073
LINDNER INTERNATIONAL FUND 3,487,730 3,593,347
LINDNER HIGH-YIELD BOND FUND 1,395,067 1,397,588
LINDNER BULWARK FUND 184,929,557 196,815,870
LINDNER GOVERNMENT MONEY
MARKET FUND 90,995,912 79,372,333
</TABLE>
For the periods ended June 30, 1998, aggregate purchases and sales of
options in the Lindner Bulwark Fund were $9,445,476 and $9,047,288,
respectively.
For the periods ended June 30, 1998, the cost of investments purchased to
cover short sales and the proceeds from investments sold short were as
follows:
<TABLE>
<CAPTION>
Short Sales Covers
----------- -----------
<S> <C> <C>
LINDNER DIVIDEND FUND $ -- $ 5,922,161
LINDNER BULWARK FUND 20,833,290 26,303,293
</TABLE>
43
<PAGE> 44
- -------------------------------------------------------------------------------
LINDNER INVESTMENTS
- -------------------------------------------------------------------------------
2. Investment Transactions (continued)
On June 30, 1998, the composition of unrealized appreciation and
(depreciation) of investment securities based on the aggregate cost of
investments for federal income tax purposes was as follows:
<TABLE>
<CAPTION>
Appreciation (Depreciation) Net Federal Tax Cost
------------ -------------- ------------ ----------------
<S> <C> <C> <C> <C>
LINDNER GROWTH FUND $288,115,765 ($89,017,277) $199,098,488 $ 809,000,964
LINDNER DIVIDEND FUND 194,406,091 (66,749,006) 127,657,085 1,481,854,100
LINDNER UTILITY FUND 9,250,208 (4,025,535) 5,224,673 37,235,048
LINDNER/RYBACK
SMALL-CAP FUND 8,173,020 (2,106,173) 6,066,847 47,322,522
LINDNER BULWARK FUND 3,315,969 (8,261,792) (4,945,823) 25,830,390
LINDNER INTERNATIONAL FUND 414,684 (746,658) (331,974) 3,040,265
LINDNER HIGH-YIELD BOND FUND 23,174 (21,147) 2,027 1,533,842
</TABLE>
On June 30, 1998, Lindner Bulwark Fund had capital loss carryforwards which
will reduce future capital gains. These loss carryforwards, which aggregate
approximately $20,466,000, expire as follows: $1,349,000 in 2003, $7,563,000
in 2004, $1,792,000 in 2005 and $9,762,000 in 2006.
3. Fees and Other Transactions with Affiliates
The management fee for Lindner Growth Fund is payable to Ryback Management
Corporation (the "Adviser") (before reimbursement of expenses to the Funds,
if any) at the annual rate of 0.7% of average net assets up to $50 million,
0.6% of the next $350 million and 0.5% of the excess over $400 million.
Depending on Lindner Growth Fund's performance compared to the S&P 500
Composite Index (the "S&P"), the fee may be increased or decreased by up to
0.2%. For the year ended June 30, 1998, the Lindner Growth Fund under
performed the S&P. Accordingly, the basic management fee of $7,201,273
was reduced by a performance penalty of 0.2% of average net assets, or
$2,700,692. This resulted in a net management fee of $4,500,581.
The management fee for Lindner Dividend Fund is payable quarterly to the
Adviser (before reimbursement of expenses to the Funds, if any) at the
annual rate of 0.7% of average net assets up to $50 million, 0.6% of the
next $150 million and 0.5% of the excess over $200 million.
The management fee is payable monthly to the Adviser by Lindner Utility
Fund and Lindner/Ryback Small-Cap Fund according to the following annual
percentage rate of daily net asset values averaged monthly (before
reimbursement of expenses to the Funds, if any) of each of the Funds: 0.7%
on the first $50 million, 0.6% on the next $150 million and 0.5% of the
excess of $200 million.
The management fee for Lindner High-Yield Bond Fund is payable monthly to
the Adviser at the annual percentage rate of 0.80% of daily net asset
values averaged monthly (before reimbursement of expenses to the Funds, if
any) of the Funds.
The management fee for Lindner Bulwark Fund and Lindner International Fund
is payable monthly to the Adviser at the annual percentage rate of 1% of
daily net asset values averaged monthly (before reimbursement of expenses
to the Funds, if any) of each of the Funds.
The management fee for the Lindner Government Money Market Fund is payable
monthly to the Adviser at the annual percentage rate of 0.15% of the Fund's
daily net asset values averaged monthly (before reimbursement of expenses
to the Fund, if any).
44
<PAGE> 45
- -------------------------------------------------------------------------------
LINDNER INVESTMENTS
- -------------------------------------------------------------------------------
3. Fees and Other Transactions with Affiliates (continued)
As administrator, Ryback Management administers the Funds' corporate
affairs, subject to the supervision of the Funds' Trustees and, in
connection therewith, furnishes the Funds' with office facilities, together
with ordinary clerical and shareholder services. An administrator fee for
the Lindner High-Yield Bond and Lindner Government Money Market Funds is
payable monthly to Ryback Management Corporation at the annual percentage
rate of 0.20% of daily net asset values averaged monthly of the Funds. The
adviser has voluntarily agreed to waive its administrative service fees to
the extent necessary to cause annual total operating expenses to be not more
than 1.25% of average net assets for investor shares and 1.50% of average
net assets for institutional shares for the Lindner High-Yield Bond Fund and
not more than 0.50% of average net assets during the year for the Lindner
Government Money Market Fund.
Annual operating and management expenses for the Lindner Growth Fund and
Lindner Dividend Fund, excluding taxes and interest, may not exceed 1.5% of
the first $30 million of average net assets plus 1% of average net assets
in excess of $30 million of the respective funds.
Ryback Management Corporation, acting as stock transfer agent and dividend
disbursing agent for the Funds, is compensated at a rate of 75 cents (83
cents for the Lindner Government Money Market Fund, and 92 cents for the
Lindner High-Yield Bond Fund) per shareholder account per month. During the
year ended June 30, 1998, the following transfer agent fees were paid to
Ryback Management Corporation: Lindner Growth Fund ($398,720), Lindner
Dividend Fund ($534,860), Lindner Utility Fund ($20,962), Lindner/Ryback
Small-Cap Fund ($19,377), Lindner International Fund ($3,303), Lindner
High-Yield Bond Fund ($385), Lindner Bulwark Fund ($18,668), and Lindner
Government Money Market Fund ($11,899).
Certain officers and directors of the Funds are affiliates of Ryback
Management Corporation.
4. Organizational Expense
The following is a schedule of expenses in connection with the organization
and registration of the Funds which are being amortized and reimbursed to
the Adviser on a straight line basis over a period of five years:
<TABLE>
<CAPTION>
Accumulated
Original Amortization 1998
Expense at June 30, 1998 Expense
-------- ---------------- -------
<S> <C> <C> <C>
LINDNER UTILITY FUND $32,377 $31,123 $6,566
LINDNER/RYBACK
SMALL-CAP FUND 29,182 26,228 5,917
LINDNER INTERNATIONAL FUND 35,889 25,464 7,278
LINDNER HIGH-YIELD BOND FUND 20,170 684 684
LINDNER BULWARK FUND 62,831 55,821 12,742
LINDNER GOVERNMENT MONEY
MARKET FUND 23,865 8,795 4,637
</TABLE>
Any redemption by the shareholders of the Adviser of their initial
investment in Lindner Utility Fund of $100,000 will reduce the
reimbursement by a pro rata portion of any of the then unamortized
expenses.
45
<PAGE> 46
- -------------------------------------------------------------------------------
LINDNER INVESTMENTS
- -------------------------------------------------------------------------------
5. Transactions with Affiliates
Issuers of whose voting stock the Funds own more than 5% but less than 25%
are classified as "affiliates (Non-controlled"). Following is an analysis
of transactions for the year ended June 30, 1998, with "affiliated
companies" as defined by the Investment Company Act of 1940:
<TABLE>
<CAPTION>
Gain (Loss)
Realized
Dividend on Sale
Security Name Activity Income of Shares
- ------------------------------ ------------------------------------------------------------ -------- -----------
Value at Purchases, Sales, Value
Beginning Additions Reductions at End of
of Period at Cost at Cost Period
--------- ---------- ---------- ---------
<S> <C> <C> <C> <C> <C> <C>
LINDNER GROWTH FUND
7th Level, Inc. $ 2,800,746 $ 2,426,795 $ 0 $ 467,073
AlarmGuard Holdings 3,371,049 2,454,688 0 802,833
Alliant Techsystems, Inc. 47,575,000 844,307 52,029,450 1,657,190
Allied Healthcare Products,
Inc. 4,258,800 5,088,244 0 (1,468,139)
American Classic Voyages
Company <F#> $ 928,313 1,830,938 <F##> 2,024,928
American Media, Inc., Class A 18,248,300 4,819,628 <F##> 1,913,726
Anagel - American Shipholdings
Ltd. - ADR <F++> 1,123,625 5,893,525 $ 68,090
Anvil Range Mining 1,970,968 5,045,570 0 (3,250,411)
Autoinfo, Inc. 1,123,688 1,420,893 0 (832,640)
Bitech Petroleum Corporation -
Rule 144A 3,986,952 790,412 <F##>
BFX Hospitality Group, Inc.
(formerly Buffton Corporation) 1,127,250 1,373,817 0 (221,517)
Canyon Resources Corporation 5,807,100 241,337 6,622,162 0 (4,114,036)
Cardiometrics, Inc. <F^^> 4,742,419 2,887,268 0
Charming Shoppes, Inc. 43,446,721 315,313 33,500,187 0 3,510,926
CML Group, Inc. 5,113,606 8,970,423 0 (1,040,633)
The Coast Distribution Company 1,690,875 1,820,029 0 (589,357)
Comprehensive Care Corporation -
Rule 144A 3,031,250 2,453,125
CPI Corporation 20,099,100 2,835,621 4,997,314 19,573,875 483,966 1,806,040
Dayton Mining Corporation 9,086,075 7,874,292 0 (4,508,974)
Designs, Inc. <F#> 5,094,667 5,494,042 0 (3,449,290)
Eagle Point Software
Corporation 1,140,625 937,500 0 (75,029)
EMCON 1,803,425 1,671,318 0 55,124
Eskimo Pie Corporation 2,970,625 2,513,125 0 36,750 671,769
Fiberstars, Inc. 1,638,488 1,727,599 0 36,868
Frontline Ltd. - ADR (formerly
London & Overseas Freighters
Ltd. - ADR) 5,702,344 3,193,313
Gainsco, Inc. <F++> 12,045,582 1,222,730 8,294,344 75,168 (14,638)
Gateway Industries, Inc. 661,968 747,786 0 (261,408)
General Magic, Inc. 3,252,800 2,059,120 0 560,224
The Good Guys, Inc. 6,737,625 8,151,075 0 411,570
Gradco Systems, Inc. 3,618,250 472,500 5,238,000
Handleman Company 20,503,275 23,278,161 0 (1,895,063)
Hilb, Rogal and Hamilton
Company 17,000,000 15,625,000 625,000
Huntway Refining Company <F#> 1,947,511
Hyseq, Inc. - Rule 144A <F#> 1,642,800 6,645,600
International Bancshares
Corporation 25,515,765 1,293,392 <F##> 7,042,595
Maynard Oil Company - ADR 7,925,125 5,356,700 0 (492,055)
Metricom, Inc. 8,580,750 22,521,243 0 (13,099,243)
46
<PAGE> 47
<CAPTION>
- -------------------------------------------------------------------------------
LINDNER INVESTMENTS
- -------------------------------------------------------------------------------
Gain (Loss)
Realized
Dividend on Sale
Security Name Activity Income of Shares
- ------------------------------ ------------------------------------------------------------ -------- -----------
Value at Purchases, Sales, Value
Beginning Additions Reductions at End of
of Period at Cost at Cost Period
--------- ---------- ---------- ---------
<S> <C> <C> <C> <C> <C> <C>
LINDNER GROWTH FUND
(CONTINUED)
Micronics Computers, Inc. $ 4,011,569 $ 7,721,946 $ 0 $ (5,072,476)
MFRI, Inc. 3,239,500 2,198,125 0 661,911
MK Gold Company 2,826,875 2,447,759 0 (764,195)
The Morningstar Group, Inc. <F^^> 26,878,125 9,818,882 0 8,117,460
Noodle Kidoodle, Inc. 2,302,125 3,035,841 0 (1,155,679)
Novastar Financial, Inc. <F#> $ 8,096,395 7,367,113 $ 322,425
Oak Technology, Inc. <F++> 13,229,740 11,232,875
OMI, Inc. 23,189,063 1,466,469 1,968,875 17,880,000 2,370,127
Marine Transport Corporation
Inc. <F*> <F++> 907,969
Quixote Corporation 5,636,000 81,813 8,734,250 184,275
Ramco-Gershenson Properties
Trust 9,574,341 1,259,784 8,776,100 489,659 278,257
Recycling Industries, Inc. 1,937,500 570,825 6,462,500
Republic Engineered Steels,
Inc. <F#> 903,188 40,000 4,907,625 (32,500)
Rightchoice Managed Care, Inc. 3,515,400 2,680,154 <F##>
Rose's Stores, Inc. 1,139,506 1,680,287 0 (925,560)
SED International Holdings,
Inc. <F#> 11,233,760 142,185 8,125,000 (56,875)
Siem Industries, Inc. <F#> 3,869,887 21,837,800
Scientific Software-Intercomp,
Inc. 412,212 338,520
South American Gold and Copper
Company Ltd. 447,626 990,468 0 (835,685)
Southernera Resources Ltd. <F++> 8,407,947 5,615,031
Spaghetti Warehouse, Inc. 3,377,400 2,720,186 0 379,743
Summit Medical Systems, Inc. 1,553,200 1,673,588 0 (112,340)
Superior Uniform Group (formerly
Superior Surgical Mfg.
Company, Inc.) 5,792,750 46,200 8,076,250 241,045
Tanknology Environmental, Inc. 2,566,680 2,801,913 0 (720,316)
Transtechnology Corporation 6,825,000 454,035 8,117,250 78,325
Uni-Marts, Inc. 2,935,500 47,902 3,051,558 0 (1,278,527)
United Retail Group, Inc. 2,591,500 3,080,886 0 3,107,409
Uranium Resources, Inc. 5,026,209 1,844,769
Vertex Communications
Corporation 11,235,000 638,150 10,528,000
Wave Technologies
International, Inc. 1,627,500 335,625 932,600 <F##> (25,599)
Westmoreland Coal Company, 8.5%
Voting Convertible Preferred 733,950 471,087 1,111,422
Wolohan Lumber Company <F++> 6,923,088 6,913,981 85,218
------------ ------------ ------------ ------------ ---------- ------------
$413,905,495 $ 84,946,435 $214,515,229 $259,670,198 $2,689,921 $(10,416,412)
============ ============ ============ ============ ========== ============
LINDNER DIVIDEND FUND
American Bank of Connecticut $ 4,395,155 $ 6,665,350 $ 198,126
Bitech Petroleum Corporation 5,304,430 $ 84,010 $ 1,105,083 <F##> $ 197,253
El Paso Electric Company 26,837,500 603,860 34,000,181 (4,956)
Handleman Company 18,483,038 19,021,462 0 (3,697,706)
Hanover Capital Mortgage
Holdings, Inc. <F++> 7,484,302 4,462,150 261,064
Harken Energy Corporation 45,500,000 3,071,501 33,783,750
Metricom, Inc. 7,143,188 15,834,140 0 (7,990,640)
47
<PAGE> 48
<CAPTION>
- -------------------------------------------------------------------------------
LINDNER INVESTMENTS
- -------------------------------------------------------------------------------
Gain (Loss)
Realized
Dividend on Sale
Security Name Activity Income of Shares
- ------------------------------ ------------------------------------------------------------ -------- -----------
Value at Purchases, Sales, Value
Beginning Additions Reductions at End of
of Period at Cost at Cost Period
--------- ---------- ---------- ---------
<S> <C> <C> <C> <C> <C> <C>
LINDNER DIVIDEND FUND
(CONTINUED)
Novastar Financial, Inc.
Common stock $ <F++> $ 4,500,000 $ 2,700,000 $ 1,637,500 $ 90,000 $ 84,375
Common stock - Rule 144A
<F**> <F++> 10,916,670 400,000
Redwood Trust, Inc. <F++> 20,902,162 14,050,000 216,000
Spaghetti Warehouse, Inc. 2,879,400 2,399,500 0 225,465
Uranium Resources, Inc.
Common stock 1,991,625 730,988
Common stock - Rule 144A 2,937,500 1,078,150
------------ ------------ ------------ ------------ ---------- ------------
$115,471,836 $ 36,041,975 $ 41,664,045 $107,324,739 $1,165,190 $(11,186,209)
============ ============ ============ ============ ========== ============
LINDNER BULWARK FUND
BFX Hospitality Group, Inc.
(formerly Buffton
Corporation) $ 1,064,250 $ 1,194,635 $ 0 $ (106,735)
Gateway Industries, Inc. 475,910 559,002 0 (208,187)
Rose's Stores, Inc. 1,148,870 1,511,712 0 (468,641)
Scientific Software Intercomp,
Inc. 409,364 336,180
Westmoreland Coal Company 8.5%
Voting Convertible Preferred 626,325 581,588
------------ ------------ ------------ ------------ ---------- ------------
$ 3,724,719 $ 0 $ 3,265,349 $ 917,768 $ 0 $ (783,563)
============ ============ ============ ============ ========== ============
<FN>
<F#> - At June 30, 1997, was not affiliated.
<F++> - At June 30, 1997, was not owned.
<F##> - At June 30, 1998, was not affiliated.
<F^^> - Investment merged into another security resulting in no gain or loss. Any
gain or loss disclosed is a result of sales prior to merger.
<F*> - Received in a spin-off at no cost.
<F**> - Received from conversion of preferred at no additional cost.
</TABLE>
6. Expense Offset Arrangements
The Funds have an arrangement whereby custodian expenses are reduced by
maintaining a compensating balance with the custodian. The Funds 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 Statements of Operations and the ratio of expenses to
average net assets in the Financial Highlights, total expenses include the
expense which had been offset. The following are the aggregate amounts for
the period ended June 30, 1998, by which expenses have been increased for
financial statement presentation:
<TABLE>
<S> <C>
LINDNER GROWTH FUND $42,198
LINDNER DIVIDEND FUND 58,793
LINDNER UTILITY FUND 1,406
LINDNER/RYBACK
SMALL-CAP FUND 1,619
LINDNER INTERNATIONAL FUND 70
LINDNER HIGH-YIELD BOND FUND 9
LINDNER BULWARK FUND 1,188
LINDNER GOVERNMENT MONEY
MARKET FUND 1,148
</TABLE>
48
<PAGE> 49
- -------------------------------------------------------------------------------
LINDNER INVESTMENTS
- -------------------------------------------------------------------------------
7. Capital Stock
The Lindner Growth, Lindner Dividend, Lindner Utility, Lindner/Ryback
Small-Cap, Lindner Bulwark, Lindner International and Lindner High-Yield
Bond Funds have authorized unlimited shares of $.01 par value Investor
shares and Institutional shares. The Lindner Government Money Market Fund
has authorized unlimited shares of $1 par value investor shares.
Transactions in shares of capital stock for the periods ended June 30, 1998
and 1997 were as follows:
<TABLE>
<CAPTION>
Periods Ended June 30, 1998 Periods Ended June 30, 1997
--------------------------- ---------------------------
Shares Amount Shares Amount
------ ------ ------ ------
<S> <C> <C> <C> <C>
LINDNER GROWTH FUND
Investor shares
- ---------------
Sold 5,426,366 $ 136,110,587 4,034,285 $ 104,275,859
Dividends and Distributions reinvested 8,184,099 183,241,854 7,123,614 174,101,137
Redeemed (26,109,623) (638,800,804) (8,411,952) (216,049,524)
-------------- -------------- ------------ -------------
Net (decrease) increase (12,499,158) $ (319,448,363) 2,745,947 $ 62,327,472
============== ============== ============ =============
Institutional shares
- --------------------
Sold 39,941 $ 1,042,902 3,917 $ 95,942
Dividends and Distributions reinvested 6,416 143,404 1 13
Redeemed (33,650) (766,031) (2) (60)
-------------- -------------- ------------ -------------
Net increase 12,707 $ 420,275 3,916 $ 95,895
============== ============== ============ =============
LINDNER DIVIDEND FUND
Investor shares
- ---------------
Sold 6,426,515 $ 180,290,348 11,601,117 $ 321,785,067
Dividends and Distributions reinvested 8,028,267 215,661,998 5,881,248 161,114,417
Redeemed (28,055,378) (788,627,137) (26,976,613) (746,721,150)
-------------- -------------- ------------ -------------
Net decrease (13,600,596) $ (392,674,791) (9,494,248) $(263,821,666)
============== ============== ============ =============
Institutional shares
- --------------------
Sold 27,452 $ 769,200 82,348 $ 2,267,410
Dividends and Distributions reinvested 13,153 353,051 2,723 74,615
Redeemed (11,740) (325,699) (13,041) (362,326)
-------------- -------------- ------------ -------------
Net increase 28,865 $ 796,552 72,030 $ 1,979,699
============== ============== ============ =============
LINDNER UTILITY FUND
Investor shares
- ---------------
Sold 704,960 $ 11,459,416 2,353,165 $ 34,422,373
Dividends and Distributions reinvested 202,703 3,159,583 72,998 1,059,599
Redeemed (1,317,416) (21,311,876) (1,734,066) (24,836,048)
-------------- -------------- ------------ -------------
Net (decrease) increase (409,753) $ (6,692,877) 692,097 $ 10,645,924
============== ============== ============ =============
Institutional shares
- --------------------
Sold 457 $ 7,561 19,057 $ 268,131
Dividends and Distributions reinvested 52 389 173 2,492
Redeemed (3,423) (55,913) (15,812) (226,286)
-------------- -------------- ------------ -------------
Net (decrease) increase (2,914) $ (47,963) 3,418 $ 44,337
============== ============== ============ =============
49
<PAGE> 50
<CAPTION>
- -------------------------------------------------------------------------------
LINDNER INVESTMENTS
- -------------------------------------------------------------------------------
Periods Ended June 30, 1998 Periods Ended June 30, 1997
--------------------------- ---------------------------
Shares Amount Shares Amount
------ ------ ------ ------
<S> <C> <C> <C> <C>
LINDNER/RYBACK SMALL-CAP FUND
Investor shares
- ---------------
Sold 5,816,203 $ 50,042,896 2,182,401 $ 14,716,844
Dividends and Distributions reinvested 194,743 1,600,791 3,864 25,192
Redeemed (2,867,441) (24,851,564) (597,054) (4,036,226)
-------------- -------------- ------------ -------------
Net increase 3,143,505 $ 26,792,123 1,589,211 $ 10,705,810
============== ============== ============ =============
Institutional shares
- --------------------
Sold 34,120 $ 280,579 24 $ 150
Dividends and Distributions reinvested 1,094 8,973 -- --
Redeemed (17,136) (150,245) -- --
-------------- -------------- ------------ -------------
Net increase 18,078 $ 139,307 24 $ 150
============== ============== ============ =============
LINDNER INTERNATIONAL FUND
Investor shares
- ---------------
Sold 276,398 $ 3,017,454 508,905 $ 5,215,761
Dividends and Distributions reinvested 8,418 79,130 2,851 27,282
Redeemed (408,939) (4,353,827) (212,319) (2,179,926)
-------------- -------------- ------------ -------------
Net (decrease) increase (124,123) $ (1,257,243) 299,437 $ 3,063,117
============== ============== ============ =============
Institutional shares
- --------------------
Sold -- $ -- 38 $ 382
Dividends and Distributions reinvested -- 7 -- 1
Redeemed -- -- -- --
-------------- -------------- ------------ -------------
Net increase -- $ 7 38 $ 383
============== ============== ============ =============
LINDNER HIGH-YIELD BOND FUND<F1>
Investor shares
- ---------------
Sold 166,496 $ 1,675,191 -- $ --
Dividends and Distributions reinvested 1,275 12,839 -- --
Redeemed (4,879) (49,267) -- --
-------------- -------------- ------------ -------------
Net increase 162,892 $ 1,638,763 -- $ --
============== ============== ============ =============
Institutional shares
- --------------------
Sold 15 $ 150 -- $ --
Dividends and Distributions reinvested -- 1 -- --
Redeemed -- -- -- --
-------------- -------------- ------------ -------------
Net increase 15 $ 151 -- $ --
============== ============== ============ =============
<FN>
<F1> Operations commenced on April 13, 1998
50
<PAGE> 51
<CAPTION>
- -------------------------------------------------------------------------------
LINDNER INVESTMENTS
- -------------------------------------------------------------------------------
Periods Ended June 30, 1998 Periods Ended June 30, 1997
--------------------------- ---------------------------
Shares Amount Shares Amount
------ ------ ------ ------
<S> <C> <C> <C> <C>
LINDNER BULWARK FUND
Investor shares
- ---------------
Sold 5,372,688 $ 34,105,013 11,966,627 $ 100,089,008
Dividends and Distributions reinvested 433,245 2,517,155 154,353 1,236,353
Redeemed (11,028,984) (68,396,769) (9,346,728) (75,888,500)
-------------- -------------- ------------ -------------
Net (decrease) increase (5,223,051) $ (31,774,601) 2,774,252 $ 25,436,861
============== ============== ============ =============
Institutional shares
- --------------------
Sold 19,355 $ 120,000 286,659 $ 2,316,545
Dividends and Distributions reinvested -- -- 3,547 28,338
Redeemed (254,614) (1,588,360) (54,929) (406,776)
-------------- -------------- ------------ -------------
Net (decrease) increase (235,259) $ (1,468,360) 235,277 $ 1,938,107
============== ============== ============ =============
LINDNER GOVERNMENT MONEY MARKET FUND <F2>
Investor shares
- ---------------
Sold 234,509,504 $ 234,509,504 199,004,025 $ 199,004,025
Dividends and Distributions reinvested 1,283,867 1,283,867 905,457 905,457
Redeemed (232,047,082) (232,047,082) (160,693,338) (160,693,338)
-------------- -------------- ------------ -------------
Net increase 3,746,289 $ 3,746,289 39,216,144 $ 39,216,144
============== ============== ============ =============
<FN>
<F2> Operations commenced on July 6, 1996.
</TABLE>
8. Distributions to Shareholders
On June 26, 1998, distributions to shareholders were recorded for Lindner
Dividend Fund, Lindner Utility Fund, and Lindner High-Yield Bond Fund.
Lindner Dividend Fund declared a $0.46 income dividend for its Investor
shares ($0.45 for its Institutional shares), Lindner Utility Fund declared
a $0.09 income dividend for its Investor shares ($0.08 for its
Institutional shares), and Lindner High-Yield Bond Fund declared a $0.12
income dividend for its Investor shares ($0.11 for its Institutional
shares).
51
<PAGE> 52
<TABLE>
FINANCIAL HIGHLIGHTS
(FOR AN INVESTOR SHARE OUTSTANDING THROUGHOUT THE PERIOD)
<CAPTION>
INCOME (LOSS) FROM INVESTMENT OPERATIONS DISTRIBUTIONS
-------------------------------------------------------- -----------------------------------------------
Net Realized Distributions
and from Net
Net Asset Unrealized Total Dividends Realized
Value, Net Gains from from Net Gains from
Beginning Investment (Losses) on Investment Investment Investment Total
of Period Income Investments Operations Income Transactions Distributions
- -----------------------------------------------------------------------------------------------------------------------------
LINDNER GROWTH FUND <F1>
------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
1994 $22.32 $0.38 $0.71 $1.09 $0.46 $0.53 $0.99
1995 $22.42 $0.43 $2.66 $3.09 $0.34 $1.84 $2.18
1996 $23.33 $0.40 $4.47 $4.87 $0.47 $1.34 $1.81
1997 $26.39 $0.36 $2.72 $3.08 $0.39 $3.10 $3.49
1998 $25.98 $0.38 ($0.27) $0.11 $0.34 $3.48 $3.82
- -----------------------------------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------------------------
<CAPTION>
LINDNER DIVIDEND FUND <F2>
---------------------------
Period Ended February 28,
<S> <C> <C> <C> <C> <C> <C> <C>
1994 $27.01 $1.88 $1.06 $2.94 $1.74 $0.58 $2.32
1995 $27.63 $1.93 ($2.13) ($0.20) $1.90 $0.57 $2.47
<CAPTION>
Period Ended June 30,
<S> <C> <C> <C> <C> <C> <C> <C>
1995 $24.96 $0.95 $1.05 $2.00 $0.96 $0.00 $0.96
1996 $26.00 $1.80 $2.29 $4.09 $1.79 $0.23 $2.02
1997 $28.07 $1.63 $0.70 $2.33 $1.68 $0.78 $2.46
1998 $27.94 $1.83 $2.02 $3.85 $1.71 $2.49 $4.20
- -----------------------------------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------------------------
<CAPTION>
LINDNER UTILITY FUND <F3>
-------------------------
Period Ended June 30,
<S> <C> <C> <C> <C> <C> <C> <C>
1994 $10.00 $0.05 ($0.01) $0.04 $0.02 $0.00 $0.02
1995 $10.02 $0.39 $0.84 $1.23 $0.39 $0.09 $0.48
1996 $10.77 $0.35 $3.42 $3.77 $0.34 $0.00 $0.34
1997 $14.20 $0.39 $1.60 $1.99 $0.42 $0.02 $0.44
1998 $15.75 $0.37 $1.96 $2.33 $0.37 $0.93 $1.30
- -----------------------------------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------------------------
<CAPTION>
LINDNER/RYBACK SMALL-CAP FUND <F5>
----------------------------------
Period Ended June 30,
<S> <C> <C> <C> <C> <C> <C> <C>
1994 $5.00 $0.01 ($0.22) ($0.21) $0.00 $0.00 $0.00
1995 $4.79 ($0.03) $0.71 $0.68 $0.01 $0.00 $0.01
1996 $5.46 $0.00 $1.30 $1.30 $0.00 $0.61 $0.61
1997 $6.15 $0.04 $1.49 $1.53 $0.01 $0.00 $0.01
1998 $7.67 $0.09 $1.07 $1.16 $0.04 $0.30 $0.34
- -----------------------------------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------------------------
<CAPTION>
LINDNER INTERNATIONAL FUND <F6>
-------------------------------
Period Ended June 30,
<S> <C> <C> <C> <C> <C> <C> <C>
1995 $9.00 $0.07 $0.02 $0.09 $0.00 $0.00 $0.00
1996 $9.09 ($0.01) $0.86 $0.85 $0.05 $0.00 $0.05
1997 $9.89 ($0.01) $1.45 $1.44 $0.00 $0.14 $0.14
1998 $11.19 ($0.15) ($2.11) ($2.26) $0.00 $0.22 $0.22
- -----------------------------------------------------------------------------------------------------------------------------
<CAPTION>
RATIOS/SUPPLEMENTAL DATA
------------------------------------------------------------------
Ratio of Net
Investment Net
Net Asset Ratio of Income Assets,
Value, Expenses to Portfolio End of
End of Total to Average Average Turnover Period
Period Return <F7> Net Assets Net Assets Rate (In Millions)
- -----------------------------------------------------------------------------------------------------------------------------
LINDNER GROWTH FUND <F1>
------------------------
<S> <C> <C> <C> <C> <C> <C>
1994 $22.42 4.83% 0.65% 1.69% 37.92% $1,528
1995 $23.33 14.89% 0.54% 1.89% 24.94% $1,446
1996 $26.39 21.95% 0.63% <F8> 1.53% 39.49% $1,446
1997 $25.98 12.50% 0.44% 1.39% 36.39% $1,495
1998 $22.27 0.31% 0.44% 1.29% 44.43% $1,003
- -----------------------------------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------------------------
<CAPTION>
LINDNER DIVIDEND FUND <F2>
--------------------------
Period Ended February 28,
<S> <C> <C> <C> <C> <C> <C>
1994 $27.63 11.19% 0.64% 7.01% 43.20% $1,532
1995 $24.96 -0.44% 0.61% 7.76% 29.79% $1,697
<CAPTION>
Period Ended June 30,
<S> <C> <C> <C> <C> <C> <C>
1995 $26.00 8.12% 0.21% 2.43% 11.00% $1,903
1996 $28.07 16.14% 0.60% <F8> 6.62% 30.24% $2,293
1997 $27.94 8.75% 0.60% 5.74% 40.32% $2,017
1998 $27.59 14.75% 0.61% 6.29% 28.56% $1,616
- -----------------------------------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------------------------
<CAPTION>
LINDNER UTILITY FUND <F3>
-------------------------
Period Ended June 30,
<S> <C> <C> <C> <C> <C> <C>
1994 $10.02 0.39% 1.30% 0.76% 44.95% $11
1995 $10.77 12.51% 1.04% 3.02% 190.70% $18
1996 $14.20 35.39% 0.95% <F8> 2.87% 98.58% $32
1997 $15.75 14.29% 0.89% 2.81% 86.44% $47
1998 $16.78 15.53% 0.91% 2.21% 99.37% $43
- -----------------------------------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------------------------
<CAPTION>
LINDNER/RYBACK SMALL-CAP FUND <F5>
----------------------------------
Period Ended June 30,
<S> <C> <C> <C> <C> <C> <C>
1994 $4.79 -4.20% 0.96% 0.52% 5.03% $5
1995 $5.46 14.32% 1.65% -0.57% 158.62% $8
1996 $6.15 25.70% 1.22% <F8> -0.04% 103.05% $10
1997 $7.67 24.96% 0.96% 0.46% 49.49% $25
1998 $8.49 15.24% 0.87% 1.13% 24.52% $54
- -----------------------------------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------------------------
<CAPTION>
LINDNER INTERNATIONAL FUND <F6>
-------------------------------
Period Ended June 30,
<S> <C> <C> <C> <C> <C> <C>
1995 $9.09 1.00% 1.26% 1.02% 0.00% $0.3
1996 $9.89 9.41% 2.57% <F8> 0.05% 48.40% $1.2
1997 $11.19 14.76% 1.96% -0.14% 37.79% $4.7
1998 $8.71 -20.31% 2.25% -1.14% 44.25% $2.6
- -----------------------------------------------------------------------------------------------------------------------------
52
<PAGE> 53
<CAPTION>
INCOME (LOSS) FROM INVESTMENT OPERATIONS DISTRIBUTIONS
-------------------------------------------------------- ------------------------------------------------
Net Realized Distributions
and from Net
Net Asset Unrealized Total Dividends Realized
Value, Net Gains from from Net Gains from
Beginning Investment (Losses) on Investment Investment Investment Total
of Period Income Investments Operations Income Transactions Distributions
----------------------------------------------------------------------------------------------------------------------------
LINDNER HIGH-YIELD BOND FUND <F9>
-------------------------------
Period Ended June 30,
<S> <C> <C> <C> <C> <C> <C> <C>
1998 $10.00 $0.13 $0.09 $0.22 $0.12 $0.00 $0.12
- -----------------------------------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------------------------
<CAPTION>
LINDNER BULWARK FUND <F4>
-------------------------
Period Ended June 30,
<S> <C> <C> <C> <C> <C> <C> <C>
1994 $7.00 $0.01 $0.16 $0.17 $0.00 $0.00 $0.00
1995 $7.17 $0.11 ($0.10) $0.01 $0.05 $0.04 $0.09
1996 $7.09 $0.26 $1.32 $1.58 $0.31 $0.00 $0.31
1997 $8.36 $0.29 ($1.81) ($1.52) $0.14 $0.00 $0.14
1998 $6.70 $0.23 ($0.89) ($0.66) $0.39 $0.00 $0.39
- -----------------------------------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------------------------
<CAPTION>
LINDNER GOVERNMENT MONEY MARKET FUND <F10>
------------------------------------------
Period Ended June 30,
<S> <C> <C> <C> <C> <C> <C> <C>
1997 $1.00 $0.05 $0.00 $0.05 $0.05 $0.00 $0.05
1998 $1.00 $0.05 $0.00 $0.05 $0.05 $0.00 $0.05
- -----------------------------------------------------------------------------------------------------------------------------
<CAPTION>
RATIOS/SUPPLEMENTAL DATA
------------------------------------------------------------------
Ratio of Net
Investment Net
Net Asset Ratio of Income Assets,
Value, Expenses to Portfolio End of
End of Total to Average Average Turnover Period
Period Return <F7> Net Assets Net Assets Rate (In Millions)
- -----------------------------------------------------------------------------------------------------------------------------
LINDNER HI-YIELD BOND FUND <F9>
-------------------------------
Period Ended June 30,
<S> <C> <C> <C> <C> <C> <C>
1998 $10.10 2.20% 0.76% 4.90% 5.97% $1.6
- -----------------------------------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------------------------
<CAPTION>
LINDNER BULWARK FUND <F4>
-------------------------
Period Ended June 30,
<S> <C> <C> <C> <C> <C> <C>
1994 $7.17 2.43% 0.66% 0.26% 0.89% $31
1995 $7.09 0.10% 1.27% 2.45% 122.64% $65
1996 $8.36 23.44% 1.24% <F8> 2.45% 139.82% $62
1997 $6.70 -18.43% 1.20% 3.86% 457.57% $68
1998 $5.65 -10.08% 1.23% 1.66% 109.32% $28
- -----------------------------------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------------------------
<CAPTION>
LINDNER GOVERNMENT MONEY MARKET FUND <F10>
------------------------------------------
Period Ended June 30,
<S> <C> <C> <C> <C> <C> <C>
1997 $1.00 5.02% 0.43% 5.45% -- $39.2
1998 $1.00 5.21% 0.50% 5.08% -- $42.9
- -----------------------------------------------------------------------------------------------------------------------------
<FN>
<F1> Historical performance information is for Lindner Fund, Inc. ("LGFI"),
the predecessor of the Lindner Growth Fund series of the Trust. The
Lindner Growth Fund series of the Trust succeeded to all of the assets
and liabilities of LGFI on June 30, 1995, pursuant to a reorganization
approved by the shareholders of LGFI on June 29, 1995.
<F2> Historical performance information is for Lindner Dividend Fund, Inc.
("LDFI"), the predecessor of the Lindner Dividend Fund series of the
Trust. The Lindner Dividend Fund series of the Trust succeeded to all of
the assets and liabilities of LDFI on June 30, 1995, pursuant to a
reorganization approved by the shareholders of LDFI on June 29, 1995.
<F3> Operations commenced on October 4, 1993.
<F4> Operations commenced on January 24, 1994.
<F5> Operations commenced on February 11, 1994.
<F6> Operations commenced on January 1, 1995.
<F7> Total return for periods of less than one year are not annualized. Total
return is the percentage increase in value for a period, assuming initial
investment at the net asset value on the day before the start of the
period and assuming all dividends and distributions were reinvested and a
redemption at the net asset value on the last day of the period.
<F8> Expense ratio for periods after September 1, 1995, are computed using
gross expenses which include fees reduced in connection with specific
agreements.
<F9> Operations commenced on April 13, 1998.
<F10> Operations commenced on July 6, 1996.
53
<PAGE> 54
<CAPTION>
(FOR AN INSTITUTIONAL SHARE OUTSTANDING THROUGHOUT THE PERIOD)
INCOME (LOSS) FROM INVESTMENT OPERATIONS DISTRIBUTIONS
-------------------------------------------------------- -----------------------------------------------
Net Realized Distributions
and from Net
Net Asset Unrealized Total Dividends Realized
Value, Net Gains from from Net Gains from
Beginning Investment (Losses) on Investment Investment Investment Total
of Period Income Investments Operations Income Transactions Distributions
- -----------------------------------------------------------------------------------------------------------------------------
LINDNER GROWTH FUND
-------------------
<S> <C> <C> <C> <C> <C> <C> <C>
1997 <F1> $26.39 $0.34 $2.68 $3.02 $0.37 $3.10 $3.47
1998 $25.94 $0.35 ($0.31) $0.04 $0.31 $3.48 $3.79
- -----------------------------------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------------------------
<CAPTION>
LINDNER DIVIDEND FUND
----------------------
<S> <C> <C> <C> <C> <C> <C> <C>
1997 <F2> $28.07 $1.61 $0.66 $2.27 $1.66 $0.78 $2.44
1998 $27.90 $1.78 $2.00 $3.78 $1.66 $2.49 $4.15
- -----------------------------------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------------------------
<CAPTION>
LINDNER UTILITY FUND
--------------------
<S> <C> <C> <C> <C> <C> <C> <C>
1997 <F3> $14.20 $0.27 $1.59 $1.86 $0.31 $0.02 $0.33
1998 $15.74 $0.26 $2.03 $2.29 $0.26 $0.93 $1.19
- -----------------------------------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------------------------
<CAPTION>
LINDNER/RYBACK SMALL-CAP FUND
-----------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
1997 <F4> $6.15 $0.04 $1.49 $1.53 $0.01 $0.00 $0.01
1998 $7.67 $0.08 $1.06 $1.14 $0.03 $0.30 $0.33
- -----------------------------------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------------------------
<CAPTION>
LINDNER BULWARK FUND
--------------------
<S> <C> <C> <C> <C> <C> <C> <C>
1997 <F5> $8.36 $0.26 ($1.81) ($1.55) $0.14 $0.00 $0.14
1998 $6.67 ($0.16) ($0.49) ($0.65) $0.00 $0.00 $0.00
- -----------------------------------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------------------------
<CAPTION>
LINDNER INTERNATIONAL FUND
--------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
1997 <F6> $9.89 ($0.04) $1.45 $1.41 $0.00 $0.14 $0.14
1998 $11.16 ($0.15) ($2.16) ($2.31) $0.00 $0.22 $0.22
- -----------------------------------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------------------------
<CAPTION>
LINDNER HIGH-YIELD BOND FUND
----------------------------
Period Ended June 30,
<S> <C> <C> <C> <C> <C> <C> <C>
1998 <F8> $10.09 $0.12 $0.02 $0.14 $0.11 $0.00 $0.11
- -----------------------------------------------------------------------------------------------------------------------------
<CAPTION>
RATIOS/SUPPLEMENTAL DATA
---------------------------------------------------------------------
Ratio of Net
Investment Net
Net Asset Ratio of Income Assets,
Value, Expenses to Portfolio End of
End of Total to Average Average Turnover Period
Period Return <F7> Net Assets Net Assets Rate (In Millions)
- -----------------------------------------------------------------------------------------------------------------------------
LINDNER GROWTH FUND
-------------------
<S> <C> <C> <C> <C> <C> <C>
1997 <F1> $25.94 15.36% 0.46% 1.29% 36.39% $101.6
1998 $22.20 0.08% 0.75% 1.05% 44.43% $369.1
- -----------------------------------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------------------------
<CAPTION>
LINDNER DIVIDEND FUND
---------------------
<S> <C> <C> <C> <C> <C> <C>
1997 <F2> $27.90 9.84% 0.85% 5.69% 40.32% $2,010
1998 $27.53 14.49% 0.88% 6.14% 28.56% $2,777
- -----------------------------------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------------------------
<CAPTION>
LINDNER UTILITY FUND
--------------------
<S> <C> <C> <C> <C> <C> <C>
1997 <F3> $15.74 14.52% 0.75% 2.42% 86.44% $53.8
1998 $16.84 15.23% 1.22% 1.99% 99.37% $8.5
- -----------------------------------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------------------------
<CAPTION>
LINDNER/RYBACK SMALL-CAP FUND
-----------------------------
<S> <C> <C> <C> <C> <C> <C>
1997 <F4> $7.67 21.21% 0.59% 0.26% 49.49% $0.2
1998 $8.48 15.02% 1.31% 0.99% 24.52% $154.0
- -----------------------------------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------------------------
<CAPTION>
LINDNER BULWARK FUND
--------------------
<S> <C> <C> <C> <C> <C> <C>
1997 <F5> $6.67 -18.61% 1.37% 4.45% 457.57% $1.57
1998 $6.02 -9.75% 1.86% 16.68% 109.32% $0.1
- -----------------------------------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------------------------
<CAPTION>
LINDNER INTERNATIONAL FUND
--------------------------
<S> <C> <C> <C> <C> <C> <C>
1997 <F6> $11.16 17.06% 1.48% -0.13% 37.79% $0.4
1998 $8.63 -20.82% 2.67% -1.47% 44.25% $0.3
- ----------------------------------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------------------------
<CAPTION>
LINDNER HIGH-YIELD BOND FUND
----------------------------
Period Ended June 30,
<S> <C> <C> <C> <C> <C> <C>
1998 <F8> $10.12 1.39% -0.09% 0.53% 5.97% $0.1
- -----------------------------------------------------------------------------------------------------------------------------
<FN>
<F1> For the period July 12, 1996 (initial purchase) to June 30, 1997.
<F2> For the period July 9, 1996 (initial purchase) to June 30, 1997.
<F3> For the period October 31, 1996 (initial purchase) to June 30, 1997.
<F4> For the period November 1, 1996 (initial purchase) to June 30, 1997.
<F5> For the period July 11, 1996 (initial purchase) to June 30, 1997.
<F6> For the period November 1, 1996 (initial purchase) to June 30, 1997.
<F7> Total return for periods of less than one year are not annualized. Total
return is the percentage increase in value for a period, assuming initial
investment at the net asset value on the day before the start of the
period and assuming all dividends and distributions were reinvested and a
redemption at the net asset value on the last day of the period.
<F8> For the period June 16, 1998 (initial purchase) to June 30, 1998.
</TABLE>
54
<PAGE> 55
INDEPENDENT AUDITORS' REPORT
Lindner Growth Fund,
Lindner Dividend Fund,
Lindner Utility Fund,
Lindner/Ryback Small-Cap Fund,
Lindner Bulwark Fund,
Lindner International Fund,
Lindner Government Money Market Fund, and
Lindner High-Yield Bond Fund
To the Trustees and Shareholders of Lindner Investments:
We have audited the accompanying statements of assets and liabilities of the
Lindner Growth Fund, the Lindner Dividend Fund, the Lindner Utility Fund, the
Lindner/Ryback Small-Cap Fund, the Lindner Bulwark Fund, the Lindner
International Fund, the Lindner Government Money Market Fund and the
Lindner High-Yield Bond Fund, including the schedules of investments, as of
June 30, 1998, and the related statements of operations for the period then
ended, the statement of changes in net assets for the periods ended June 30,
1998 and 1997, and the financial highlights for each of the periods in the five
year period ended June 30, 1998. 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, 1998, by corresponding with the Funds' 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 positions of the Funds at June
30, 1998, and the results of their operations, the changes in their net assets,
and the financial highlights for the respective stated periods, in conformity
with generally accepted accounting principles.
DELOITTE & TOUCHE LLP
St. Louis, Missouri
August 7, 1998
55
<PAGE> 56
LINDNER INVESTMENTS
7711 Carondelet Avenue, Suite 700
St. Louis, Missouri 63105
Tel: 314-727-5305
Fax: 314-727-9306
BOARD OF TRUSTEES
Robert L. Byman
Terence P. Fitzgerald
Marc P. Hartstein
Peter S. Horos
Donald J. Murphy
Dennis P. Nash
Eric E. Ryback
Doug T. Valassis
INVESTMENT ADVISER
Ryback Management Corporation
CUSTODIANS
Star Bank, N.A.
The Chase Manhattan Bank, N.A.
COUNSEL
Dykema Gossett PLLC
INDEPENDENT AUDITORS
Deloitte & Touche LLP
TRANSFER AGENT
Ryback Management Corporation
[LOGO] LINDNER(R)
FUNDS
ADVISED BY RYBACK MANAGEMENT CORPORATION(TM)
www.lindnerfunds.com
The Lindner Funds
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A N N U A L
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R E P O R T
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