<PAGE>
<PAGE>
<TABLE>
LINDNER HIGH-YIELD BOND FUND
STATEMENT OF ASSETS AND LIABILITIES
<CAPTION>
JUNE 30,
1999
<S> <C>
ASSETS
Investment securities, at value:
Unaffiliated issuers (identified cost of $1,832,537)...... $1,795,063
Cash........................................................ 63,378
Receivables:
Dividends and interest.................................... 19,401
Unamortized organizational expense (Note 4)................. 15,395
Receivable for expenses reimbursed by advisor............... 17,202
Other assets................................................ 117
----------
Total assets............................................ 1,910,556
----------
LIABILITIES
Accounts payable and accrued liabilities:
Distribution to shareholders (Note 8)..................... 9,630
Other liabilities:
Management fee (Note 3)................................... 1,216
Organizational expense (Note 4)........................... 15,451
Other..................................................... 7,335
----------
Total liabilities....................................... 33,632
----------
NET ASSETS.................................................. $1,876,924
==========
NET ASSETS CONSIST OF:
Capital (par value, $.01 per share, and additional paid-in
capital)................................................... $2,316,465
Undistributed net investment income......................... 2,999
Accumulated net realized loss on investments and foreign
currency transactions...................................... (405,066)
Net unrealized appreciation (depreciation) on investments
and translation of assets and liabilities in foreign
currency................................................... (37,474)
----------
NET ASSETS APPLICABLE TO OUTSTANDING SHARES................. $1,876,924
==========
NET ASSET VALUE PER SHARE
Investor Shares:
NET ASSETS................................................ $1,876,924
SHARES OUTSTANDING........................................ 234,758
----------
$ 8.00
==========
See Notes to Financial Statements
</TABLE>
<PAGE>
<PAGE>
<TABLE>
LINDNER HIGH-YIELD BOND FUND
SCHEDULE OF INVESTMENTS
<CAPTION>
JUNE 30, 1999
--------------------------
NUMBER OF
SHARES -
PRINCIPAL
AMOUNT
NAME OF ISSUER AND TITLE OF ISSUE OF BONDS VALUE
<S> <C> <C>
PREFERRED STOCKS (9.73%)
Consumer Services (4.77%)
Cendant Corporation 7.5% convertible.................... 2,600 $ 89,538
----------
Food Distribution (4.96%)
Chiquita Brands International, Inc. $2.875 Series A
convertible............................................ 2,700 $ 93,150
----------
NON-CONVERTIBLE BONDS (24.20%)
Computer and Electronic Equipment (2.45%)
Moog Inc., 10%, due 2006................................ 45,000 $ 45,888
----------
Construction and Real Estate (4.11%)
Wickes, Inc., 11.625%, due 2003......................... 90,000 $ 77,175
----------
Retail Trade (14.17%)
Homeland Stores, Inc., 10%, due 2003.................... 70,000 $ 59,850
Pamida Holdings Corporation, 11.75%, due 2003........... 100,000 103,750
Pathmark Stores, Inc., 11.625%, due 2002................ 100,000 102,250
----------
$ 265,850
----------
Security Systems (3.47%)
Mosler, Inc., 11%, due 2003............................. 80,000 $ 65,200
----------
CONVERTIBLE BONDS (13.89%)
Computer and Electronic Equipment (13.89%)
Cirrus Logic, Inc. 6%, due 2003......................... 130,000 $ 89,538
Intevac Inc., 6.5%, due 2004............................ 70,000 43,838
Network Equipment Technologies, Inc., 7.25%, due 2014... 45,000 32,850
Quantum Corporation, 7%, due 2004....................... 100,000 94,500
----------
$ 260,726
----------
Total Convertible Bonds (Cost $295,306)................. $ 260,726
----------
U.S GOVERNMENT AGENCY SECURITIES (47.82%)
FHLB, 7/30/99......................................... 100,000 $ 99,618
FHLMC, 7/08/99........................................ 300,000 299,724
FMCDN, 7/22/99........................................ 300,000 299,167
FNMA, 8/05/99......................................... 200,000 199,027
----------
Total U.S Government Agency Securities (Cost $897,536).. $ 897,536
----------
Total Investments (Cost $1,832,537)..................... 95.64% $1,795,063
Excess of Other Assets over Liabilities................. 4.36% 81,861
----------
Net Assets.............................................. 100.00% $1,876,924
==========
<FN>
FHLB = Federal Home Loan Banks
FHLMC = Federal Home Loan Mortgage Corporation
FMCDN = Federal Home Loan Mortgage Corporation Discount Note
FNMA = Federal National Mortgage Association
See Notes to Financial Statements
</TABLE>
<PAGE>
<PAGE>
<TABLE>
LINDNER HIGH-YIELD BOND FUND
STATEMENT OF OPERATIONS
<CAPTION>
YEAR ENDED
JUNE 30,
1999
<S> <C>
INVESTMENT INCOME
Income:
Dividends from unaffiliated issuers....................... $ 53,962
Amortization.............................................. 26,046
Interest.................................................. 149,564
---------
Total income.......................................... 229,572
---------
Expenses:
Management fees (Note 3).................................. 3,159
Registration and regulatory fees.......................... 5,736
Professional fees......................................... 7,317
Custodian fees............................................ 150
Transfer agent fees (Note 3).............................. 2,947
Shareholder communications................................ 1,249
Organizational expense (Note 4)........................... 4,092
Other expenses............................................ 918
---------
Total expenses........................................ 25,568
Fees paid indirectly (Note 6)....................... (72)
---------
Net expenses........................................ 25,496
---------
Net investment income..................................... 204,076
---------
REALIZED AND UNREALIZED GAIN (LOSS) FROM INVESTMENTS AND
FOREIGN CURRENCY TRANSACTIONS:
Net realized loss on investments of unaffiliated issuers.... (405,066)
---------
Net realized loss on investments and foreign currency
transactions............................................... (405,066)
---------
Change in unrealized appreciation on investments and
translation of assets
and liabilities in foreign currencies...................... (39,501)
---------
NET DECREASE IN NET ASSETS RESULTING FROM OPERATIONS........ ($240,491)
=========
See Notes to Financial Statements
</TABLE>
<PAGE>
<PAGE>
<TABLE>
LINDNER HIGH-YIELD BOND FUND
STATEMENT OF CHANGES IN NET ASSETS
<CAPTION>
PERIOD ENDED
JUNE 30,
---------------------------
1999 1998<F1>
<S> <C> <C>
INCREASE IN NET ASSETS:
OPERATIONS:
Net investment income............................. $204,076 $ 20,483
Net realized (loss) gain on investments and
foreign currency transactions.................... (405,066) 3,609
Net (decrease) increase in unrealized appreciation
on investments and translation of assets and
liabilities in foreign currencies................ (39,501) 2,027
---------- ----------
Net (Decrease) Increase in Net Assets........... ($240,491) $ 26,119
---------- ----------
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income:
Investors shares................................ (202,539) (19,008)
Institutional shares............................ (10) (2)
From net realized gain on investments and foreign
currency transactions:
Investors shares................................ (3,609) --
---------- ----------
Net decrease in net assets from distributions to
shareholders..................................... (206,158) (19,010)
---------- ----------
FUND SHARE TRANSACTIONS - NOTE 7:
Investors shares.................................. 677,671 1,638,763
Institutional shares.............................. (121) 151
---------- ----------
Net Increase in Fund Share Transactions......... 677,550 1,638,914
---------- ----------
TOTAL INCREASE IN NET ASSETS........................ 230,901 1,646,023
Net Assets at the Beginning of the Period........... 1,646,023 --
---------- ----------
Net Assets at the End of the Period................. $1,876,924 $1,646,023
========== ==========
Undistributed Net Investment Income Included in Net
Assets at the End of the Period.................... $ 2,999 $ 1,472
========== ==========
<FN>
<F1> Operations commenced on April 13, 1998.
See Notes to Financial Statements
</TABLE>
<PAGE>
<PAGE>
LINDNER HIGH-YIELD BOND FUND
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 1999
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. Lindner
High-Yield Bond Fund (the "Fund") is a separate series of Lindner
Investments. The Fund's investment adviser is Lindner Asset
Management, Inc. (formerly Ryback Management Corporation). On June
24, 1999, The Lindner Funds Board of Trustees approved the
decision to close the Lindner High-Yield Bond Fund to new
purchases, effective June 25, 1999. No additional sales of shares
will be accepted from existing investors other than through
dividend reinvestment. The Board of Trustees anticipate a formal
plan of liquidation will be forthcoming pending shareholder
approval.
The following is a summary of significant accounting policies
followed by the Fund.
Security Valuation
The Lindner High-Yield Bond Fund values investments 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.
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 where recovery of such
taxes is not assured.
Foreign Currency Translation
The books and records of the Fund is 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.
The Fund currently holds no foreign securities.
Income Taxes
It is the policy of the Fund 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.
Dividends and Distributions to Shareholders
The Lindner High-Yield Bond Fund distributes substantially all
of its 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 the Fund in December, following the end of the
fiscal year for this fund. Designation of sources of
distributions are determined in accordance with income tax
regulations which may differ from generally accepted accounting
principles. These differences are pimarily 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.
<PAGE>
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>
<PAGE>
LINDNER HIGH-YIELD BOND FUND
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 1999
2. Investment Transactions
For the year ended June 30, 1999, 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>
<S> <C>
Purchases............................................. 1,334,001
Sales................................................. 1,949,194
</TABLE>
For the year ended June 30, 1999, aggregate purchases and sales of
U.S. Government securities were as follows:
<TABLE>
<S> <C>
Purchases............................................. 3,384,885
Sales................................................. 2,497,041
</TABLE>
On June 30, 1999, 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>
<S> <C>
Appreciation.......................................... 31,588
(Depreciation)........................................ (69,062)
Net................................................... (37,474)
Federal Tax Cost...................................... 1,832,537
</TABLE>
3. Fees and Other Transactions with Affiliates
The management fee for Lindner High-Yield Bond Fund is payable
monthly to Lindner Asset Management, Inc. (formerly Ryback
Management Corporation), (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 Fund.
As administrator, Lindner Asset Management, Inc. 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
Fund is payable monthly to Lindner Asset Management, Inc. 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 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.
Lindner Asset Management, Inc., acting as stock transfer agent and
dividend disbursing agent for the Funds, is compensated at a rate
of 92 cents per shareholder account per month. During the year
ended June 30, 1999, transfer agent fees totaling $2,183 were paid
to Lindner Asset Management, Inc. Certain officers and directors
of the Fund are affiliates of Lindner Asset Management, Inc.
4. Organizational Expense
The following is a schedule of expenses in connection with the
organization and registration of the Fund which are being
amortized and reimbursed to the Adviser on a straight line basis
over a period of five years:
<TABLE>
<S> <C>
Original Expense...................................... 20,170
Accumulated Amortization at June 30, 1999............. 4,775
1999 Expense.......................................... 4,092
</TABLE>
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"). For the
year ended June 30, 1999 there were no transactions with
"affiliated companies" as defined by the Investment Company Act of
1940.
6. 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
<PAGE>
LINDNER HIGH-YIELD BOND FUND
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 1999
it had not agreed to a reduction in fees under the expense offset
arrangement. In the Statement 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 aggregate
amount for the year ended June 30, 1999, by which expenses have
been increased for financial statement presentation is $72.
7. Capital Stock
On June 24, 1999, The Lindner Funds Board of Trustees approved the
decision to close the Lindner High-Yield Bond Fund to new
purchases, effective June 25, 1999. No additional sales of shares
will be accepted from existing investors other than through
dividend reinvestment. Transactions in shares of capital stock for
the periods ended June 30, 1999 and 1998 were as follows:
<TABLE>
<CAPTION>
YEAR ENDED YEAR ENDED
JUNE 30, 1999 JUNE 30, 1998<F1>
------------------------- -----------------------
SHARES AMOUNT SHARES AMOUNT
<S> <C> <C> <C> <C>
Investor shares
- ---------------
Sold............................... 232,587 $ 2,067,276 166,496 $1,675,191
Dividends and Distributions........ 18,732 154,860 1,275 12,839
Redeemed........................... (179,453) (1,544,465) (4,879) (49,267)
-------- ----------- ------- ----------
Net increase....................... 71,866 $ 677,671 162,892 $1,638,763
======== =========== ======= ==========
<FN>
<F1> For the Period April 13, 1998 (Inception of the Fund) to June 30, 1998.
<CAPTION>
YEAR ENDED YEAR ENDED
JUNE 30, 1999 JUNE 30, 1998<F1>
------------------------- -----------------------
SHARES AMOUNT SHARES AMOUNT
<S> <C> <C> <C> <C>
Institutional shares
- --------------------
Sold............................... -- $ -- 15 $ 150
Dividends and Distributions........ 1 6 -- 1
Redeemed........................... (16) (127) -- --
-------- ----------- ------- ----------
Net increase....................... (15) $ (121) 15 $ 151
======== =========== ======= ==========
<FN>
<F1> For the Period June 16, 1998 (Initial Purchase) to June 30, 1998.
</TABLE>
8. Distributions to Shareholders
On June 25, 1999, distributions to shareholders were recorded for
Lindner High-Yield Bond Fund. Lindner High-Yield Bond Fund
declared a $0.16 income dividend for its Investor shares.
<PAGE>
<PAGE>
<TABLE>
FINANCIAL HIGHLIGHTS
(FOR AN INVESTOR SHARE OUTSTANDING THROUGHOUT THE PERIOD)
<CAPTION>
INCOME (LOSS) FROM INVESTMENT OPERATIONS
-----------------------------------------------------
NET REALIZED
AND
NET ASSET UNREALIZED TOTAL
VALUE, NET GAINS FROM
BEGINNING INVESTMENT (LOSSES) ON INVESTMENT
OF PERIOD INCOME INVESTMENTS OPERATIONS
Period Ended June 30
<S> <C> <C> <C> <C>
1998 <F1> $10.00 $0.13 $0.09 $0.22
1999 $10.10 $0.83 ($2.09) ($1.26)
<CAPTION>
DISTRIBUTIONS
--------------------------------------------
DISTRIBUTIONS
FROM NET
DIVIDENDS REALIZED NET ASSET
FROM NET GAINS FROM VALUE,
INVESTMENT INVESTMENT TOTAL END OF TOTAL
INCOME TRANSACTIONS DISTRIBUTIONS PERIOD RETURN<F2>
Period Ended June 30
<S> <C> <C> <C> <C> <C>
1998 <F1> $0.12 $0.00 $0.12 $10.10 2.20%
1999 $0.83 $0.01 $0.84 $8.00 (12.40%)
<CAPTION>
RATIOS/SUPPLEMENTAL DATA
------------------------------------------------------------
RATIO OF NET
INVESTMENT NET
RATIO OF INCOME ASSETS,
EXPENSES TO PORTFOLIO END OF
TO AVERAGE AVERAGE TURNOVER PERIOD
NET ASSETS NET ASSETS RATE (IN MILLIONS)
Period Ended June 30
<S> <C> <C> <C> <C>
1998 <F1> 0.76% 4.90% 5.97% $1.6
1999 1.25% 9.97% 78.32% $1.9
<FN>
<F1> For the Period April 13, 1998 (Inception of the Fund) to June 30, 1998.
<F2> 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.
</TABLE>
<PAGE>
<TABLE>
(FOR AN INSTITUTIONAL SHARE OUTSTANDING THROUGHOUT THE PERIOD)
<CAPTION>
INCOME (LOSS) FROM INVESTMENT OPERATIONS
-----------------------------------------------------
NET REALIZED
AND
NET ASSET UNREALIZED TOTAL
VALUE, NET GAINS FROM
BEGINNING INVESTMENT (LOSSES) ON INVESTMENT
OF PERIOD INCOME INVESTMENTS OPERATIONS
Period Ended June 30,
<S> <C> <C> <C> <C>
1998 <F2> $10.09 $0.12 $0.02 $0.14
1999 <F3> $ 0.00 $0.00 $0.00 $0.00
<CAPTION>
DISTRIBUTIONS
--------------------------------------------
DISTRIBUTIONS
FROM NET
DIVIDENDS REALIZED NET ASSET
FROM NET GAINS FROM VALUE,
INVESTMENT INVESTMENT TOTAL END OF TOTAL
INCOME TRANSACTIONS DISTRIBUTIONS PERIOD RETURN<F1>
Period Ended June 30,
<S> <C> <C> <C> <C> <C>
1998 <F2> $0.11 $0.00 $0.11 $10.12 1.39%
1999 <F3> $0.00 $0.00 $0.00 $0.00 0.00%
<CAPTION>
RATIOS/SUPPLEMENTAL DATA
-------------------------------------------------------
RATIO OF NET
INVESTMENT NET
RATIO OF INCOME ASSETS,
EXPENSES TO PORTFOLIO END OF
TO AVERAGE AVERAGE TURNOVER PERIOD (IN
NET ASSETS NET ASSETS RATE THOUSANDS)
Period Ended June 30,
<S> <C> <C> <C> <C>
1998 <F2> (0.09%) 0.53% 5.97% $0.1
1999 <F3> 0.00% 0.00% 0.00% $0.0
<FN>
<F1> 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.
<F2> For the period June 16, 1998 (initial purchase) to June 30, 1998.
<F3> At June 30, 1999 no Institutional class shares were outstanding.
</TABLE>
<PAGE>
LINDNER HIGH-YIELD BOND FUND
INDEPENDENT AUDITORS' REPORT
To the Trustees and Shareholders of Lindner Investments:
We have audited the accompanying statements of assets and
liabilities of the Lindner High-Yield Bond Fund (one of the
portfolios of Lindner Investments), including the schedule of
investments, as of June 30, 1999, and the related statement of
operations for the year then ended, the statement of changes in net
assets and the financial highlights for the year ended June 30, 1999
and for the period from April 13, 1998 (inception of the fund) to
June 30, 1998. These financial statements and financial highlights
are the responsibility of the Fund's management. Our responsibility
is to express an opinion on these financial statements and financial
highlights based on our audits.
We conducted our audits in accordance with generally accepted
auditing standards. Those standards require that we plan and perform
the audit to obtain reasonable assurance about whether the financial
statements and financial highlights are free of material
misstatement. An audit 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, 1999, by corresponding with the Fund's custodians. 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
referred to above present fairly, in all material respects, the
financial position of the Fund at June 30, 1999, the results of its
operations for the year then ended, the changes in its net assets
and the financial highlights for the year ended June 30, 1999 and
for the period from April 13, 1998 (inception of the fund) to June
30, 1998 in conformity with generally accepted accounting
principles.
DELOITTE & TOUCHE LLP
St. Louis, Missouri
August 11, 1999
------------------------------------------
SHAREHOLDER VOTE INFORMATION
JUNE 30, 1999
Special meetings of shareholders were held on December 17 and 22,
1998, to vote on several matters. Items affecting the Lindner
High-Yield Bond Fund include:
1. Approve changes to the fundamental investment policies and
restrictions of certain Funds, as follows:
(a) Amend the fundamental restriction concerning borrowings and
senior securities.
2. Approve a change in the following fundamental investment policies
and restrictions to make them non-fundamental policies and
restrictions:
(a) Restriction on purchasing securities on margin.
Shareholders adopted all proposals. The voting on each proposal was
as follows:
<TABLE>
<CAPTION>
FOR AGAINST ABSTAIN
<S> <C> <C> <C>
Proposal 1(a).................................... 128,267 14,372 4,634
<CAPTION>
FOR AGAINST ABSTAIN
<S> <C> <C> <C>
Proposal 2(a).................................... 126,085 17,163 4,026
</TABLE>
