<PAGE> 1
THE LINDNER FUNDS
SEMI-ANNUAL REPORT
LINDNER GOVERNMENT
MONEY MARKET FUND
---------------------
PERIOD ENDED
DECEMBER 31, 1997
---------------------
<PAGE> 2
LINDNER GOVERNMENT MONEY MARKET FUND
<TABLE>
STATEMENT OF ASSETS AND LIABILITIES
<CAPTION>
(UNAUDITED) DECEMBER 31,
1997
<S> <C>
ASSETS
Investment securities, at value.......................... $36,793,413
Cash..................................................... 510,044
Interest receivable...................................... 200,930
Unamortized organizational expense (Note 2).............. 17,362
Other assets............................................. 16,561
-----------
Total assets......................................... 37,538,310
-----------
LIABILITIES
Accounts payable and other liabilities:
Fund shares redeemed................................... 499,052
Dividends.............................................. 75,544
Organizational expense................................. 17,388
Administrator fee...................................... 6,909
Management fee......................................... 5,181
Other.................................................. 14,520
-----------
Total liabilities.................................... 618,594
-----------
NET ASSETS............................................... $36,919,716
===========
NET ASSETS CONSIST OF:
Paid-in capital.......................................... $36,919,716
===========
SHARES OF BENEFICIAL INTEREST, $1.00 PAR VALUE UNLIMITED
SHARES AUTHORIZED, OUTSTANDING......................... 36,919,716
===========
NET ASSET VALUE PER SHARE................................ $ 1.00
===========
See Notes to the Financial Statements
</TABLE>
<TABLE>
STATEMENT OF OPERATIONS
<CAPTION>
(UNAUDITED) SIX MONTHS ENDED
DECEMBER 31,
1997
<S> <C>
INVESTMENT INCOME
Interest............................. $1,137,998
----------
EXPENSES:
Administrator fees (Note 3).......... 40,493
Management fees (Note 3)............. 30,370
Registration and regulatory fees..... 18,126
Shareholder communications........... 7,014
Transfer agent fees (Note 3)......... 6,553
Organizational expense (Note 2)...... 2,344
Custodian expense.................... 1,442
Other expenses....................... 2,560
Waiver of administrator fee (Note 3). (6,174)
----------
Total expenses..................... 102,728
Fees paid indirectly (Note 4).... (701)
----------
NET EXPENSES..................... 102,027
----------
NET INVESTMENT INCOME................ $1,035,971
==========
See Notes to the Financial Statements
</TABLE>
<PAGE> 3
LINDNER GOVERNMENT MONEY MARKET FUND
<TABLE>
STATEMENT OF CHANGES IN NET ASSETS
<CAPTION>
(UNAUDITED) SIX MONTHS PERIOD
ENDED ENDED
DECEMBER 31, JUNE 30,
1997 1997<F1>
<S> <C> <C>
INCREASE IN NET ASSETS:
Net investment income............... $ 1,035,971 $ 1,835,374
----------- -----------
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income.......... (1,035,971) (1,835,374)
----------- -----------
FUND SHARES TRANSACTIONS:
Net (decrease) increase in net assets
resulting from fund shares
transactions (Note 5).............. (2,296,429) 39,216,144
------------ -----------
NET ASSETS:
TOTAL (DECREASE) INCREASE............. (2,296,429) 39,216,144
Net Assets at the Beginning of the
Period.............................. 39,216,144 0
----------- -----------
NET ASSETS AT THE END OF THE PERIOD... $36,919,716 $39,216,144
=========== ===========
<FN>
<F1> Operations commenced on July 6, 1996.
See Notes to the Financial Statements
</TABLE>
<TABLE>
FINANCIAL HIGHLIGHTS
<CAPTION>
(UNAUDITED) SIX MONTHS PERIOD
ENDED ENDED
DECEMBER 31, JUNE 30,
1997 1997<F1>
<S> <C> <C>
PER SHARE OPERATING DATA:
Net asset value, beginning of period.. $ 1.00 $ 1.00
Income from investment operations..... 0.03 0.05
Dividends to shareholders............. $ (0.03) (0.05)
----------- -----------
Net asset value, end of period........ $ 1.00 $ 1.00
=========== ===========
TOTAL RETURN, AT NET ASSET VALUE<F2>.. 2.59% 5.02%
=========== ===========
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(in millions)...................... $ 36.9 $ 39.2
Average net assets (in millions)...... $ 41.0 $ 36.5
Ratios to average net assets:
Net investment income............... 2.53% 5.45%
Expenses............................ 0.25% 0.43%
<FN>
<F1> Operations commenced on July 6, 1996.
<F2> Assumes a hypothetical initial investment on the business day before the
first day of the fiscal period with all dividends reinvested in additional
shares on the reinvestment date, and redemption at the net asset value
calculated on the last business day of the fiscal period. Total returns
are not annualized for periods of less than one full year. Total returns
reflect changes in net investment income only.
</TABLE>
<PAGE> 4
LINDNER GOVERNMENT MONEY MARKET FUND
NOTES TO THE FINANCIAL STATEMENTS
(UNAUDITED)
1. Organization and Significant Accounting Policies
Lindner Investments, a Massachusetts business trust (the "Funds"), is
registered under the Investment Company Act of 1940, as amended, as an
open-end management investment company. Lindner Government Money Market Fund
(the "Fund") is a separate series of Lindner Investments which invests
primarily in United States government obligations. The Fund began operations
on July 6, 1996. The Fund's investment objective is to achieve a high level
of current income consistent with preservation of capital and liquidity by
investing in a portfolio of high-quality, short-term "Government Money
Market" instruments. The Fund's investment adviser is Ryback Management
Corporation (the Adviser).
The following is a summary of significant accounting policies followed by
the Fund.
Investment Valuation
Investment securities are valued using either the amortized cost method,
whereby investments purchased at discount or premium are valued by
amortizing the difference between the original purchase cost and maturity
value of the issue over the period to maturity, or at original cost. Both
methods approximate current value.
Investment Transactions
Investment transactions are accounted for on the date purchased or sold.
Realized gains and losses (if any) on investments are determined on a
first-in, first-out cost basis, which is the same basis used for federal
income tax purposes.
Investment Income
Interest income is recorded on the accrual basis and includes amortization
of premiums and discounts.
Repurchase Agreements
Securities pledged as collateral for repurchase agreements are held by the
Federal Reserve Bank and are designated as being held on the Fund's behalf
by their custodian under a book-entry system. The Fund monitors the adequacy
of the collateral daily and can require the seller to provide additional
collateral in the event the market value of the securities pledged falls
below the repurchase agreement.
Income Taxes
It is the policy of the Fund to distribute all taxable income to
shareholders and to otherwise qualify as a regulated investment company
under provisions of the Internal Revenue Code. Accordingly, no provision has
been made for federal or state taxes.
Distributions to Shareholders
The Fund's dividends are declared daily from the total of net investment
income on portfolio securities, and distributed monthly. Income
distributions are determined in accordance with income tax regulations which
may differ from generally accepted accounting principles. These differences
are primarily due to differing treatments in the recognition of income and
expense items for financial statement and tax purposes.
Use of Management Estimates
The preparation of financial statements in conformity with generally
accepted accounting principles requires that management make certain
estimates and assumptions that affect the reported amounts of assets and
liabilities and disclosure of contingent assets and liabilities at the date
of the financial statements. The reported 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.
<PAGE> 5
LINDNER GOVERNMENT MONEY MARKET FUND
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
(UNAUDITED)
2. Organizational Expense
The Fund had expenses in connection with the organization and registration
of the Fund totaling $23,865 which are being amortized and reimbursed to the
Adviser on a straight line basis over a period of five years. Accumulated
amortization at December 31, 1997, was $6,503. Organizational expense of
these costs amounted to $2,344 for the six months ended December 31, 1997.
3. Fees and Other Transactions with Affiliates
The management fee from the Fund is payable monthly to the Adviser at the
annual percentage rate of 0.15% of daily net asset values averaged monthly
(before reimbursement of expenses to the Fund, if any) of the Fund.
As administrator, Ryback Management administers the Fund's corporate
affairs, subject to the supervision of the Fund's Trustees and, in connection
therewith, furnishes the Fund with office facilities, together with ordinary
clerical and shareholder services. The administrator fee from the Fund is
payable monthly to Ryback Management at the annual percentage rate of 0.20%
of daily net asset values averaged monthly of the Fund.
The Adviser has voluntarily agreed to waive its administrative service fee
to the extent necessary to cause the Fund's annual total operating expenses
to be not more than 0.50% of the Fund's average net assets during the year.
As of December 31, 1997, $6,174 in fees had been waived.
Ryback Management Corporation, acting as stock transfer agent and dividend
disbursing agent for the Fund, is compensated at a rate of 83 cents per
shareholder account per month. During the six months ended December 31, 1997,
transfer agent fees of $5,941 were paid to Ryback Management Corporation by
the Fund.
Certain officers and directors of the Fund are affiliates of Ryback
Management Corporation.
4. Expense Offset Arrangements
The Fund has an arrangement whereby custodian expenses are reduced by
maintaining a compensating balance with the custodian. The Fund could have
invested the assets used by the custodian in an income-producing asset if it
had not agreed to a reduction in fees under the expense offset arrangement.
In the Statement of Operations and expense ratio in the Financial Highlights,
total expenses include the expense which had been offset. For the six months
ended December 31, 1997, expenses have been increased for financial statement
presentation by $701.
5. Transactions of fund shares were as follows:
<TABLE>
<CAPTION>
SIX MONTHS ENDED
DECEMBER 31, 1997
------------------------------
SHARES AMOUNT
<S> <C> <C>
Sold.................................. 155,672,414 $155,672,414
Dividend reinvested................... 614,322 614,322
Redeemed.............................. (158,583,165) (158,583,165)
------------ ------------
Net (decrease)...................... (2,296,429) $ (2,296,429)
============ ============
<CAPTION>
PERIOD ENDED
JUNE 30, 1997
------------------------------
SHARES AMOUNT
<S> <C> <C>
Sold.................................. 199,004,025 $199,004,025
Dividend reinvested................... 905,457 905,457
Redeemed.............................. (160,693,338) (160,693,338)
------------ ------------
Net increase........................ 39,216,144 $ 39,216,144
============ ============
</TABLE>
<PAGE> 6
LINDNER GOVERNMENT MONEY MARKET FUND
<TABLE>
SCHEDULE OF INVESTMENTS
<CAPTION>
(UNAUDITED) DECEMBER 31, 1997
-------------------------
FACE VALUE
AMOUNT SEE NOTE 1
<S> <C> <C>
U.S. GOVERNMENT AGENCY
SECURITIES (61.68%)
FCDN, 5.75%, 1/2/98.................... $11,000,000 $10,998,258
FFCB, 5.73%, 2/3/98.................... 200,000 200,009
FFCB, 6.05%, 5/1/98.................... 500,000 500,154
FHLB, 5.78%, 1/28/98................... 1,000,000 1,000,000
FHLB, 5.84%, 6/22/98................... 180,000 180,113
FHLB, 6.00%, 9/4/98.................... 250,000 249,922
FHLB, 9.25%, 11/25/98.................. 130,000 133,895
FHLB, 5.75%, 12/3/98................... 785,000 784,474
FHLMC, pool M90179, 5.5%, 5/1/98....... 441,358 440,417
FHLMC, 4.95%, 9/9/98................... 500,000 497,217
FHLMC, 5.18%, 11/18/98................. 25,000 24,837
FHLMC, 4.77%, 9/14/98.................. 100,000 99,284
FNMA, 6.05%, 1/12/98................... 490,000 490,069
FNMA, 6.02%, 1/20/98................... 350,000 350,069
FNMA, 8.20%, 3/10/98................... 545,000 547,467
FNMA, 6.00%, 4/17/98................... 500,000 499,570
FNMA, 5.40%, 5/28/98................... 185,000 184,706
FNMA, 5.74%, 6/9/98.................... 500,000 500,000
FNMA, 5.41%, 6/25/98................... 300,000 299,061
FNMA, 5.10%, 7/22/98................... 170,000 169,250
FNMA, 9.04%, 8/10/98................... 255,000 260,183
FNMA, 5.35%, 8/12/98................... 450,000 448,624
FNMA, 4.80%, 10/15/98.................. 250,000 248,148
FNMA, 5.42%, 11/2/98................... 360,000 358,952
FNMA, 5.76%, 11/4/98................... 500,000 500,093
FNMA, 7.05%, 12/10/98.................. 460,000 465,014
SLMA, floating rate, 1/21/98........... 1,500,000 1,500,061
SLMA, 7%, 3/3/98....................... 340,000 340,743
SLMA, 5.74%, 12/17/97.................. 500,000 500,230
-----------
$22,770,820
===========
</TABLE>
<PAGE> 7
LINDNER GOVERNMENT MONEY MARKET FUND
<TABLE>
SCHEDULE OF INVESTMENTS (CONTINUED)
<CAPTION>
(UNAUDITED) DECEMBER 31, 1997
-------------------------
FACE VALUE
AMOUNT SEE NOTE 1
<S> <C> <C>
U.S. TREASURY NOTES (1.02%)
5.125%, due 12/31/98................... $ 250,000 $ 248,818
TBRR, DISC, 5/15/98.................... 51,000 49,940
TGR, Series KFO, 5/15/98............... 59,000 57,809
TGR, Series T23, 11/15/98.............. 20,000 19,026
-----------
$ 375,593
-----------
TEMPORARY CASH INVESTMENTS (36.96%)
Repurchase Agreements
(Collateralized by U.S. Government
Agency Obligations)
Donaldson, Lufkin & Jenrette Corporation
dated 12/31/97,
6.52%, due 1/2/98...................... 6,073,000 $ 6,073,000
Merrill Lynch and Company, Inc. dated
12/31/97, 6.5%,
due 1/2/98............................. 1,500,000 1,500,000
SwissBank Corporation dated
12/31/97, 6.50%, due 1/2/98............ 6,074,000 6,074,000
-----------
$13,647,000
-----------
Total Investments
(Cost $36,793,413)..................... 99.66% $36,793,413
Excess of Other Assets
over Liabilities....................... 0.34% 126,303
-----------
Net Assets............................... 100.00% $36,919,716
===========
See Notes to the Financial Statements
<FN>
FCDN = Federal Farm Credit Discount Note
FFCB = Federal Farm Credit Bank
FHLB = Federal Home Loan Banks
FHLMC = Federal Home Loan Mortgage Corporation
FNMA = Federal National Mortgage Association
SLMA = Student Loan Marketing Association
TBRR = Treasury Bond Receipts
TGR = Treasury Income Growth Receipts
</TABLE>
<PAGE> 8
LINDNER GOVERNMENT MONEY MARKET FUND
MANAGEMENT COMMENT
Dear Shareholder:
We are pleased to present the Semi-Annual Report for the Lindner Government
Money Market Fund. Detailed in this report are the portfolio holdings and
financial statements of the Lindner Government Money Market Fund for the six
months ended December 31, 1997. The purpose of the Fund is to provide
shareholders with a "safe-haven" for investable cash that provides a
competitive return to other short-term investments, with the additional benefit
of liquidity typically not available in deposit products like certificates of
deposit.
As managers of the Lindner Government Money Market Fund, our goal is to provide
shareholders with competitive returns. As reported in the December 30, 1997,
edition of the IBC Money Report, the Fund reported a 7-day net yield of 5.10%
and a 30-day net yield of 5.12%. These were among the highest 20% of returns
reported on that date among the 119 funds listed in IBC's U. S. Government and
Agency classification.
A primary concern of the Fund's managers is to provide liquidity and safety to
its shareholders. In order to mitigate liquidity and credit risks, the Fund
managers invest only in securities issued or guaranteed by the U. S. Treasury
or Agencies of the U. S. government, and repurchase agreements fully
collateralized by these securities. These types of securities are generally
considered to have the least credit risk of any securities available and offer
excellent liquidity. Each security under consideration for purchase by the Fund
is subject to an in-depth analysis, both on the merits of the individual
security and the potential impact on the portfolio as a whole.
To provide a constant stream of liquidity and to take advantage of higher
yields at longer maturities, the Fund manager's current strategy is to have
"laddered" the maturities of the portfolio securities. This "laddering" of
maturities allows the portfolio manager to create a portfolio of investments
with maturities ranging from overnight to 13 months. As an additional measure
to protect the Fund from dramatic changes in interest rates, the Fund will
often times use securities on which the coupon rate periodically resets. The
manager also adds value by investing in securities which are overlooked by many
of the Fund's competitors and which the Fund manager believes to offer unique
value, within the conservative guidelines provided by the Fund's prospectus.
/s/ Eric E. Ryback
Eric E. Ryback
President
