<PAGE>
<PAGE>
MARKET OVERVIEW
"THE CURRENT MARKET REPRESENTS THE TRIUMPH OF THE EXCITING STORY
OVER LONG RUN EXPERIENCE"
The 12-month period that ended June 30, 1999 was without a doubt one
for the financial markets' record books. Milestones were reached,
and the marketplace withstood some of the greatest volatility in
history. Perhaps the most noteworthy performance was seen at the
NASDAQ, home of the occasionally eruptive technology stocks. The
NASDAQ managed, coupled with extreme volatility, to earn an
impressive 42.28% return. Not to be outdone, the Dow Jones
Industrial Average reached and passed the 10,000 mark, with a 24.66%
return. The Standard & Poor's 500 Index ended the year with an
impressive return of 22.76%.
While the US economy remained strong, this period saw the beginning
of the chaos and decline in a number of world markets, especially in
Asia, Russia and Latin America. As a result, investors began turning
toward US Treasuries, the demand causing the bond yields to hit a
30-year low. In the midst of these events, in one week, the Dow
spiraled down a dramatic 1000 points, and stocks began to be hit
with heavy losses.
Throughout the beginning and middle of Fall, 1998, the Federal
Reserve Board took measures to control the volatility of the equity
markets. It did so by cutting the fed funds target rate three times.
Being just what the doctor ordered, stocks began to rebound and
recover. Though there still were periods of volatility with the
market's direction depending on a few large stocks, the months from
January through June 1999 saw the market continue to make advances.
This was a difficult period for investment choices. The
unprecedented nature of so many of the events that took place during
the Lindner Funds' fiscal year put our value model at a
disadvantage, and the returns and relative performance of our mutual
funds continued to suffer. During February and March we revitalized
the Lindner model, combining powerful cash flow analysis with
state-of-the art risk controls. Lindner has adapted to the new
environment, and our funds' performance has begun to respond quite
favorably in the fourth quarter of the Fiscal Year (April - June
1999).
All of those important and necessary changes have been accomplished
within the value investor framework and tradition of the Lindner
funds long term history. We are determined to restore our
shareowners confidence by returning superior performance. We have
made a good beginning. We look forward to rewarding your trust and
confidence in the months and years ahead.
/s/ Mark T. Finn
Mark T. Finn,
Chief Operating Officer
1
<PAGE>
<PAGE>
<TABLE>
- -------------------------------------------------------------------------------------------------------------
LINDNER INVESTMENTS
- -------------------------------------------------------------------------------------------------------------
STATEMENTS OF ASSETS AND LIABILITIES
JUNE 30, 1999
<CAPTION>
LINDNER ASSET
LINDNER LARGE-CAP FUND ALLOCATION FUND
------------------------ ------------------------
<S> <C> <C>
ASSETS
Investment securities, at value:
Unaffiliated issuers (identified cost of
$367,487,220, $777,350,388, $21,157,292 and
$33,913,966, respectively) $409,521,513 $759,423,858
Affiliated issuers (identified cost $13,519,781,
$13,535,482, $0 and $0, respectively) (Note 5) 25,812,431 6,971,952
Cash 230,161 304,832
Receivables:
Investments sold - long 9,172,658 2,365,536
Dividends and interest 188,150 9,843,565
Fund shares sold 479 22,608
Other assets 397,774 88,160
------------------------ ------------------------
Total assets 445,323,166 779,020,511
------------------------ ------------------------
LIABILITIES
Accounts payable and accrued liabilities:
Investment securities purchased 10,887,243 631,550
Fund shares redeemed 555,524 1,730,140
Distribution to shareholders (Note 8) -- 3,318,823
Other liabilities:
Management fee (Note 3) 79,080 1,083,597
Other 80,396 103,929
------------------------ ------------------------
Total liabilities 11,602,243 6,868,039
------------------------ ------------------------
NET ASSETS $433,720,923 $772,152,472
======================== ========================
NET ASSETS CONSIST OF:
Capital (par value, $.01 per share, and additional
paid-in capital) $381,571,838 $840,631,145
Undistributed net investment income 4,807,100 10,241,937
Accumulated net realized loss on investments and
foreign currency transactions (6,985,011) (54,230,550)
Net unrealized appreciation (depreciation) on
investments and translation of assets and
liabilities in foreign currency 54,326,996 (24,490,060)
------------------------ ------------------------
NET ASSETS APPLICABLE TO OUTSTANDING SHARES $433,720,923 $772,152,472
======================== ========================
NET ASSET VALUE PER SHARE
Investor Shares:
NET ASSETS $433,535,961 $768,009,504
SHARES OUTSTANDING 26,860,513 32,676,139
------------------------ ------------------------
$16.14 $23.50
======================== ========================
Institutional Shares:
NET ASSETS $184,962 $4,142,968
SHARES OUTSTANDING 11,544 176,955
======================== ========================
$16.02 $23.41
======================== ========================
<PAGE>
<CAPTION>
LINDNER UTILITY FUND LINDNER SMALL-CAP FUND
------------------------ ------------------------
<S> <C> <C>
Assets
Investment securities, at value:
Unaffiliated issuers (identified cost of
$367,487,220, $777,350,388, $21,157,292 and
$33,913,966, respectively) $26,153,218 $38,651,949
Affiliated issuers (identified cost $13,519,781,
$13,535,482, $0 and $0, respectively) (Note 5) -- --
Cash 178,637 98,202
Receivables:
Investments sold - long -- 674,240
Dividends and interest 48,000 44,976
Fund shares sold 217 833,000
Other assets 2,616 3,176
------------------------ ------------------------
Total assets 26,382,688 40,305,543
------------------------ ------------------------
LIABILITIES
Accounts payable and accrued liabilities:
Investment securities purchased -- 441,360
Fund shares redeemed 12,352 299,676
Distribution to shareholders (Note 8) 9,839 --
Other liabilities:
Management fee (Note 3) 15,200 21,700
Other 3,649 6,972
------------------------ ------------------------
Total liabilities 41,040 769,708
------------------------ ------------------------
NET ASSETS $26,341,648 $39,535,835
======================== ========================
NET ASSETS CONSIST OF:
Capital (par value, $.01 per share, and additional
paid-in capital) $21,544,805 $35,916,729
Undistributed net investment income 36,438 202,702
Accumulated net realized loss on investments and
foreign currency transactions (235,565) (1,321,579)
Net unrealized appreciation (depreciation) on
investments and translation of assets and
liabilities in foreign currency 4,995,970 4,737,983
------------------------ ------------------------
NET ASSETS APPLICABLE TO OUTSTANDING SHARES $26,341,648 $39,535,835
======================== ========================
NET ASSET VALUE PER SHARE
Investor Shares:
NET ASSETS $26,341,452 $37,904,782
SHARES OUTSTANDING 1,778,283 4,704,942
------------------------ ------------------------
$14.81 $8.06
======================== ========================
Institutional Shares:
NET ASSETS $196 $1,631,053
SHARES OUTSTANDING 13 202,930
======================== ========================
$14.96 $8.04
======================== ========================
See Notes to Financial Statements
</TABLE>
2
<PAGE>
<PAGE>
<TABLE>
- -------------------------------------------------------------------------------------------------------------
LINDNER INVESTMENTS
- -------------------------------------------------------------------------------------------------------------
STATEMENTS OF ASSETS AND LIABILITIES
JUNE 30, 1999
<CAPTION>
LINDNER MARKET
NEUTRAL FUND
------------------------
<S> <C>
ASSETS
Investment securities, at value:
Unaffiliated issuers (identified cost of
$16,557,768) $15,214,671
Cash 107,301
Receivables:
Investments sold - long 231,137
Dividends and interest 59,768
Investments sold - short 3,663,946
Deposits with brokers for securities sold short 3,088,142
Other assets 2,201
------------------------
Total assets 22,367,166
------------------------
LIABILITIES
Accounts payable and accrued liabilities:
Investments sold short, at value (proceeds
$3,663,946) 4,144,892
Other liabilities:
Management fee (Note 3) 16,178
Other 3,764
------------------------
Total liabilities 4,164,834
------------------------
NET ASSETS $18,202,332
========================
NET ASSETS CONSIST OF:
Capital (par value, $.01 per share, and
additional paid-in capital) $44,478,080
Undistributed net investment income 359,644
Accumulated net realized loss on investments and
foreign currency transactions (24,811,877)
Net unrealized depreciation on investments and
translation of assets and liabilities in
foreign currency (1,823,515)
------------------------
NET ASSETS APPLICABLE TO OUTSTANDING SHARES $18,202,332
========================
NET ASSET VALUE PER SHARE
Investor Shares:
NET ASSETS $18,202,222
SHARES OUTSTANDING 3,181,938
------------------------
$5.72
========================
Institutional Shares:
NET ASSETS $110
SHARES OUTSTANDING 18
========================
$6.09
========================
<PAGE>
<CAPTION>
LINDNER GOVERNMENT
MONEY MARKET FUND
------------------------
<S> <C>
ASSETS
Investment securities, at value $43,615,493
Cash 109,294
Interest receivable 344,816
Unamortized organizational expense (Note 4) 10,420
Other assets 42,857
------------------------
Total assets 44,122,880
------------------------
LIABILITIES
Accounts payable and accrued liabilities:
Fund shares redeemed 28,504
Dividends 60,163
Organizational expense 10,433
Administrator fee 7,345
Management fee (Note 3) 5,508
Other 7,841
------------------------
Total liabilities 119,794
------------------------
NET ASSETS $44,003,086
========================
NET ASSETS CONSIST OF:
Paid-in capital $44,003,086
========================
SHARES OF BENEFICIAL INTEREST, $1.00 PAR VALUE
UNLIMITED SHARES AUTHORIZED, OUTSTANDING 44,003,086
========================
NET ASSET VALUE PER SHARE $1.00
========================
See Notes to Financial Statements
</TABLE>
3
<PAGE>
<PAGE>
PERFORMANCE SUMMARY
The Lindner Large-Cap Fund had a total return of -13.66% in the
fiscal year ended June 30, 1999. The performance of the S&P 500
Index and the Russell 1000 was 22.76% and 21.96%, respectively,
covering the same period.
Our fund returned -19.53% on the first quarter of the fiscal year
followed by a slightly better quarter with a return of 7.36%. The
third quarter return was -12.38%, significantly below the market
performance again.
Many positions in our fund early in the fiscal year were small
market capitalization company securities with extremely low market
liquidity. The bull market, which took off right after the global
economic turmoil in 1998, was more generous to large cap growth
stocks. The fund's poor performance was related to its significant
exposure to the small cap sector as well as losses on heavy
positions in a few stocks such as OMI Corporation, HYSEQ, Inc.,
Harken Energy Corporation, Uranium Resources, Inc., and Novastar
Financial Corporation.
The name of the former Lindner Growth Fund was changed to the
Lindner Large-Cap Fund to better reflect the new strategy that is
being followed.
The performance for the fourth quarter was increasingly positive.
The structural changes in the fund succeeded in a 14.06% quarterly
return which compares favorably to the performance of the S&P 500
Index and the Russell 1000 Index of 7.05% and 7.24% respectively.
Some of the new investment choices were RF Micro Devices, Inc.,
Oracle Corporation and Legato Systems, Inc. which had substantial
unrealized gains at the end of the fiscal year.
The investment philosophy for the whole fund family has been
reviewed for a better adjustment to the changing nature of capital
markets, shifting closer towards modern financial economics
principles. The classical Lindner value approach has been updated
and enhanced to evaluate 'value' in relative terms rather than in
absolute terms. Under the new approach, the value of a firm is
evaluated by looking at the firm's current cash flows coupled with
the expected future cash flows. Price, in fact, is a result and is
dependent on people's expectations. Mispricings are considered in
the relative frame; the value created by a company's expected future
cash flows should be in line with similar companies.
The increasing volatility of the markets puts stricter risk
management requirements on the money management side. The key tool
to sound risk management is diversification. Cross-sectional
diversification should be applied by broadening the investment
universe (i.e., increasing the number of stocks in a portfolio) and
adjusting the holding weights accordingly in order to avoid taking
sector/fundamental/company specific bets. On the other hand, time
diversification should also be applied by making proper asset
allocation decisions to reduce the dependence of the portfolios to
specific asset types. Liquidity is also a major consideration for the
funds holdings in that if our opinion on a security changes, the market
for the security will be broad enough so that the securities price
will be relatively unaffected by our liquidation.
Since our new risk management approach consciously avoids taking
large common factor<F*> exposures, the performance of the fund becomes
largely dependent on management's investment skill. Common factor
exposures may provide better performance in certain times, but are
very risky. On the other hand, performance coming from a sound stock
selection strategy provides consistent, lower volatility returns,
which should result in healthy asset growth in the long-term.
/s/ Doug Valassis /s/ Mark T. Finn /s/ Eric Ryback
Doug Valassis Mark T. Finn Eric E. Ryback
Chairman and Chief Vice Chairman and President
Executive Officer Chief Operating Officer
[FN]
<F*>Common factor risk is portfolio risk that arises from assets'
exposures to common factors, such as capitalization and industries.
(Source: Barra U.S. Equity Risk Model Handbook, page 34)
LINDNER LARGE-CAP (FORMERLY
GROWTH) FUND
PERFORMANCE GRAPH
- --------------------------------------------------------------------
Comparison of change in value of $10,000 invested in the S&P 500
Index and the Lindner Large-Cap Fund--Investor Shares from June 30,
1989 to June 30, 1999 and Institutional Shares from July 12, 1996 to
June 30, 1999:
[Large-Cap Fund graph]
PAST PERFORMANCE IS NOT PREDICTIVE OF FUTURE PERFORMANCE
4
<PAGE>
<PAGE>
<TABLE>
- -----------------------------------------------------------------------------------------------
LINDNER INVESTMENTS
- -----------------------------------------------------------------------------------------------
SCHEDULES OF INVESTMENTS - JUNE 30, 1999
<CAPTION>
Number of Shares -
Principal Amount
Name of Issuer and Title of Issue of Bonds Value
- ------------------------------------------------------- ------------------ ----------------
<S> <C> <C>
LINDNER LARGE-CAP FUND
- ----------------------
COMMON STOCKS (81.30%)
Aerospace/Defense (4.30%)
Alliant Techsystems, Inc. <F*> 215,400 $18,632,100
----------------
Airlines (0.30%)
COMAIR, Inc. 63,500 $1,321,594
----------------
Apparel & Other Textile Products (1.30%)
AnnTaylor Stores Corporation <F*> 50,000 $2,250,000
Nautica Enterprises, Inc. <F*> 200,000 3,375,000
----------------
$5,625,000
----------------
Biotechnology (0.70%)
Amgen, Inc. <F*> 50,000 $3,043,750
----------------
Brewery (0.76%)
Anheuser - Busch Companies, Inc. 46,900 $3,326,969
----------------
Business Services (2.71%)
Cendant Corporation <F*> 175,000 $3,587,500
CSG Systems International, Inc. <F*> 110,000 2,880,625
The Interpublic Group of Companies, Inc. 25,000 2,165,625
Manpower, Inc. 50,000 1,131,250
Omnicom Group, Inc. 24,600 1,968,000
----------------
$11,733,000
----------------
Computer and Electronic Equipment (6.21%)
American Power Conversion Corporation <F*> 300,000 $6,037,500
Apple Computer, Inc. <F*> 90,000 4,168,125
3Com Corporation <F*> 85,000 2,268,438
Compaq Computer Corporation 200,000 4,737,500
Creative Technology Ltd. 350,000 4,703,125
EMC Corporation <F*> 50,000 2,750,000
Oak Technology, Inc. <F*> 624,400 2,263,450
----------------
$26,928,138
----------------
Construction and Real Estate (0.67%)
USG Corporation 52,500 $2,940,000
----------------
Consumer (0.74%)
Fort James Corporation 85,200 $3,226,950
----------------
Environmental Services (1.36%)
Safety-Kleen Corporation 325,000 $5,890,625
----------------
Financial Services (9.00%)
CORUS Bankshares, Inc. 450,558 $14,333,376
EEsti Uhispank - GDR - Rule 144A <F*>, <Fr>
(Acquired 3/6/98 - 11/5/98, Cost $4,986,431) 505,000 2,588,125
Federal National Mortgage Association 60,000 4,102,500
First Tennessee National Corporation 20,000 766,250
International Bancshares Corporation 407,718 17,251,568
----------------
$39,041,819
----------------
Food and Beverage (1.02%)
Flowers Industries, Inc. 125,000 $2,710,938
Whitman Corporation 95,000 1,710,000
----------------
$4,420,938
----------------
Gaming, Lottery & Parimutual Betting (0.64%)
International Game Technology <F*> 149,500 $2,765,750
----------------
Healthcare (4.45%)
ALZA Corporation <F*> 45,000 $2,289,375
Covance, Inc. <F*> 57,700 1,381,194
Express Scripts, Inc. <F*> 65,400 3,936,263
Humana, Inc. <F*> 225,200 2,913,525
Hyseq, Inc.
Common Stock <F*> 131,900 457,535
Common Stock - Rule 144A <F*>, <Fr>
(Acquired 10/16/97, Cost $1,642,800) 120,000 358,692
RightChoice Managed Healthcare, Inc. <F*> 696,300 7,963,931
----------------
$19,300,515
----------------
<PAGE>
Hotel Operator (0.08%)
Orbis S.A. <Ff>, <F*> 38,102 $328,248
----------------
Industrial Products and Services (7.77%)
Mark IV Industries, Inc. 348,500 $7,362,063
Pall Corporation 100,000 2,218,750
Quixote Corporation 35,400 431,438
Smurfit-Stone Container Corporation <F*> 131,730 2,708,698
Tecumseh Products Company
Common Stock - Class A 50,000 3,028,125
Common Stock - Class B 167,000 9,101,500
TransTechnology Corporation 287,800 5,666,063
Vitro, Sociedad Anonima -
ADR - <F*> 622,200 3,188,775
----------------
$33,705,412
----------------
Insurance (2.22%)
Catalana Occidente S.A. <Ff> 186,993 $4,010,987
W.R. Berkley Corporation 225,000 5,625,000
----------------
$9,635,987
----------------
Investment Banking\Brokerage (0.70%)
Lehman Brothers Holdings, Inc. 25,000 $1,556,250
Morgan Stanley Dean Witter & Company 14,600 1,496,500
----------------
$3,052,750
----------------
Investments (0.89%)
PICO Holdings, Inc. <F*> 152,800 $3,867,750
----------------
Leisure/Entertainment (0.33%)
Carnival Corporation 30,000 $1,455,000
----------------
Manufacturing (1.31%)
Tyco International Ltd. 60,000 $5,685,000
----------------
Manufacturing - Commerical Uniforms (1.10%)
Superior Uniform Group, Inc. 380,600 $4,757,500
----------------
Manufacturing - Consumer Goods (3.14%)
National Presto Industries, Inc. 305,000 $11,666,250
York International Corporation 45,800 1,960,813
----------------
$13,627,063
----------------
See Notes to Financial Statements
5
<PAGE>
<CAPTION>
- -----------------------------------------------------------------------------------------------
LINDNER INVESTMENTS
- -----------------------------------------------------------------------------------------------
SCHEDULES OF INVESTMENTS - JUNE 30, 1999
Number of Shares -
Principal Amount
Name of Issuer and Title of Issue of Bonds Value
- ------------------------------------------------------- ------------------ ----------------
<S> <C> <C>
LINDNER LARGE-CAP FUND
- ----------------------
Mining (0.77%)
Ashanti Goldfields Company, Ltd. - GDR 232,910 $1,615,813
Southernera Resources, Ltd. <F*> 522,300 1,729,236
----------------
$3,345,049
----------------
Oil & Gas Exploration and Production (1.21%)
Bitech Petroleum
Common Stock <Ff>, <F*> 2,440,595 $2,143,766
Common Stock - Rule 144A <Ff>, <F*>, <Fr>
(Acquired 5/23/97, Cost $3,062,787) 2,000,000 1,756,757
Harken Energy Corporation <F*> 822,600 1,336,725
----------------
$5,237,248
----------------
Real Estate Investment Trust (0.62%)
Novastar Financial, Inc. <F*> 419,250 $2,672,719
----------------
Restaurants and Food Preparation (0.22%)
Starbucks Corporation <F*> 25,000 $939,063
----------------
Retail (5.88)
Best Buy Company <F*> 28,000 $1,890,000
Circuit City Stores, Inc. 10,000 930,000
CPI Corporation <Fa> 644,200 21,258,600
Saks, Inc. <F*> 50,000 1,443,750
----------------
$25,522,350
----------------
Retail - Specialty (1.32%)
Autozone, Inc. <F*> 140,000 $4,217,500
Hancock Fabrics, Inc. 300,800 1,316,000
PETsMART, Inc. <F*> 20,000 205,000
----------------
$5,738,500
----------------
Semiconducters (0.33%)
Xilinx, Inc. <F*> 25,000 $1,431,250
----------------
Software (3.63%)
Autodesk, Inc. 50,000 $1,478,125
Computer Sciences Corporation <F*> 15,000 1,037,813
Compuware Corporation <F*> 40,000 1,272,500
Informix Corporation <F*> 290,500 2,478,343
Legato Systems, Inc. <F*> 52,000 3,003,000
Microsoft Corporation <F*> 45,000 4,058,438
Oracle Corporation <F*> 64,800 2,405,700
----------------
$15,733,919
----------------
Telecommunications (1.05%)
Vertex Communication Corporation <Fa>, <F*> 332,700 $4,553,831
----------------
Telecommunications Equipment (3.22%)
General Instrument Corporation <F*> 140,000 $5,950,000
Qwest Communications International, Inc. <F*> 135,000 4,463,438
Tellabs, Inc. <F*> 26,000 1,756,625
WA Telcom Products Company, Inc. <F*> 126,000 1,779,750
----------------
$13,949,813
----------------
Telecommunications Service (0.36%)
BellSouth Telecommunications, Inc. 25,000 $1,171,875
Centurytel, Inc. 10,000 397,500
----------------
$1,569,375
----------------
Transportation (4.36%)
Airborne Freight Corporation 125,000 $3,460,938
Frontline Ltd. - ADR - <Ff>, <F*> 304,400 1,127,585
MIF Ltd., - Rule 144A <F*>, <Fr> (Acquired
12/20/96 - 4/10/97, Cost $4,250,000) 312,732 5,958,919
OMI, Inc. 1,269,500 2,618,344
Overseas Shipholding Group, Inc. 294,200 3,787,825
UAL Corporation <F*> 30,000 1,950,000
----------------
$18,903,611
----------------
<PAGE>
Utilities (Gas, Electric & Water) (2.05%)
El Paso Electric Company <F*> 400,000 $3,575,000
UniSource Energy Corporation 444,100 5,301,444
----------------
$8,876,444
----------------
Miscellaneous (4.58%) $19,844,718
----------------
Total Common Stocks (Cost $298,302,805) $352,629,748
----------------
U.S. GOVERNMENT AGENCY SECURITIES (19.07%)
FHLB, 7/16/99 $8,000,000 $7,984,300
FHLB, 7/21/99 6,400,000 6,382,862
FHLB, 7/23/99 300,000 299,094
FHLB, 7/28/99 4,300,000 4,284,714
FHLB, 7/30/99 2,200,000 2,191,588
FHLMC, 7/02/99 600,000 599,922
FHLMC, 7/08/99 10,000,000 9,990,842
FHLMC, 7/09/99 3,700,000 3,696,086
FHLMC, 7/16/99 8,200,000 8,183,942
FHLMC, 7/19/99 1,600,000 1,596,200
FHLMC, 7/29/99 8,300,000 8,269,271
FHLMC, 8/05/99 7,900,000 7,862,749
FMCDN, 7/14/99 4,600,000 4,592,143
FMCDN, 7/22/99 1,100,000 1,096,946
FNMA, 7/22/99 1,700,000 1,695,309
FNMA, 7/23/99 5,000,000 4,985,293
FNMA, 7/7/99 9,000,000 8,992,935
----------------
Total U.S Government Agency Securities
(Cost $82,704,196) $82,704,196
----------------
Total Investments (Cost $381,007,001) 100.37% $435,333,944
Excess of Other Liabilities over Assets (0.37%) ($1,613,021)
-------------- ----------------
Net Assets 100.00% $433,720,923
============== ================
<FN>
<F*> Non-income producing
<Fa> Denotes security is affiliated (See Note 5)
<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, 1999 was $10,662,493 which represented 2.46% of net assets.
ADR = American Depository Receipts
GDR = Global Depository Receipts
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>
6
<PAGE>
<PAGE>
PERFORMANCE SUMMARY
The Lindner Asset Allocation Fund had a total return of -5.57% in
the fiscal year ended June 30, 1999. The performance of the Russell
1000 Index and the S&P 500 Index was 21.96% and 22.76% respectively
covering the same period.
The performance of the fund in the first quarter was a poor -7.86%
followed by the second quarter returns of -1.35%. During these two
quarters, the "flight to quality" caused by the 1998 global economic
turmoil, caused the credit spreads of most fixed income securities
to increase. This unexpected trend in the capital markets had a
substantial negative effect on the performance of the fund since
almost half of the assets were invested in convertible preferred
issues and high-yield bonds. The fund, with its portfolio weighted
heavily in the energy and mining sector, also took significant
losses in certain related equity positions. The third quarter
results then came in with a poor return performance of -4.34%. The
largest percentage loss throughout the year was in our Harken Energy
Corporation holdings.
The name of the former Lindner Dividend Fund was changed to Lindner
Asset Allocation Fund to better reflect the new strategy that is
being followed.
The fourth quarter performance reflected the positive trend in the
fund. The structural changes in the fund succeeded in a 8.59%
quarterly return which is more than satisfactory when compared to
the performance of the S&P 500 Index and the Russell 1000 Index of
7.05% and 7.24%, respectively. Some of the new investment choices
were Worthington Industries, Corning, Inc. and Gap, Inc.
The investment philosophy for the whole fund family has been
reviewed for a better adjustment to the changing nature of capital
markets, shifting closer towards modern financial economics
principles. The classical Lindner value approach has been updated
and enhanced to evaluate 'value' in relative terms rather than in
absolute terms. Under the new approach, the value of a firm is
evaluated by looking at the firm's current cash flows coupled with
the expected future cash flows. Price, in fact, is a result and is
dependent on people's expectations. Mispricings are considered in
the relative frame; the value created by a company's expected future
cash flows should be in line with similar companies.
The increasing volatility of the markets puts stricter risk
management requirements on the money management side. The key tool
to sound risk management is diversification. Cross-sectional
diversification should be applied by broadening the investments
universe (i.e. increasing the number of stocks in a portfolio) and
adjusting the holding weights accordingly in order to avoid taking
sector/fundamental/company specific bets. On the other hand, time
diversification should also be applied by making proper asset
allocation decisions to reduce the dependence of the portfolios to
specific asset types. Liquidity is also a major consideration for
the funds holdings in that if our opinion on a security changes, the
market for the security will be broad enough so that the securities
price will be relatively unaffected by our liquidation.
Since our new risk management approach consciously avoids taking
large common factor<F*> exposures, the performance of the fund becomes
largely dependent on management's investment skill. Common factor
exposures may provide better performance in certain times, but are
very risky. On the other hand, performance coming from a sound stock
selection strategy provides consistent, lower volatility returns,
which should result in healthy asset growth in the long-term.
/s/ Doug Valassis /s/ Mark T. Finn /s/ Eric Ryback
Doug Valassis Mark T. Finn Eric E. Ryback
Chairman and Chief Vice Chairman and President
Executive Officer Chief Operating Officer
[FN]
<F*>Common factor risk is portfolio risk that arises from assets'
exposures to common factors, such as capitalization and industries.
(Source: Barra U.S. Equity Risk Model Handbook, page 34)
LINDNER ASSET ALLOCATION (FORMERLY
DIVIDEND) FUND
PERFORMANCE GRAPH
- --------------------------------------------------------------------
Comparison of change in value of $10,000 invested in the S&P 500
Index and the Lindner Asset Allocation Fund--Investor Shares from
June 30, 1989 to June 30, 1999 and Institutional Shares from July 9,
1996 to June 30, 1999:
[Asset Allocation Fund graph]
PAST PERFORMANCE IS NOT PREDICTIVE OF FUTURE PERFORMANCE
7
<PAGE>
<PAGE>
<TABLE>
- -----------------------------------------------------------------------------------------------
LINDNER INVESTMENTS
- -----------------------------------------------------------------------------------------------
SCHEDULES OF INVESTMENTS - JUNE 30, 1999
<CAPTION>
Number of Shares -
Principal Amount
Name of Issuer and Title of Issue of Bonds Value
- ------------------------------------------------------- ------------------ ----------------
<S> <C> <C>
LINDNER ASSET ALLOCATION FUND
- -----------------------------
COMMON STOCKS (19.73%)
Brewery (0.92%)
Anheuser - Busch Companies, Inc. 100,000 $7,093,750
----------------
Broadcast/Media (0.85%)
Comcast Corporation, Class A <F*> 171,800 $6,603,563
----------------
Electrical Equipment (0.81%)
Emerson Electric Company 100,000 $6,287,500
----------------
Financial Services (1.46%)
IMH Commercial Holdings, Inc. <Fa>, <F*> 431,200 $2,721,950
WFC Holdings Corporation 200,000 8,550,000
----------------
$11,271,950
----------------
Healthcare (3.64%)
Abbott Laboratories 100,000 $4,550,000
Medtronic, Inc. 15,000 1,168,125
Merck & Company, Inc. 100,000 7,400,000
Pfizer, Inc. 40,000 4,390,000
Pharmacia & Upjohn, Inc. 21,700 1,232,831
Schering-Plough Corporation 150,000 7,950,000
Warner-Lambert Company 20,000 1,387,500
----------------
$28,078,456
----------------
Leisure/Entertainment (0.19%)
Carnival Corporation 30,000 $1,455,000
----------------
Manufacturing (0.81%)
Corning, Inc. 25,000 $1,753,125
General Electric Company 40,000 4,520,000
----------------
$6,273,125
----------------
Manufacturing - Consumer Goods (0.91%)
Whirlpool Corporation 95,000 $7,030,000
----------------
Mining (0.00%)
Atlas Corporation <F*> 157,500 $6,300
----------------
Oil & Gas Exploration and Production (2.04%)
Harken Energy Corporation <F*> 5,819,700 $9,457,013
Kerr-McGee Corporation 60,000 3,011,250
USX-Marathon Group 100,000 3,256,250
----------------
$15,724,513
----------------
Real Estate Invesment Trusts (0.55%)
Novastar Financial, Inc. -
Rule 144A <Fa>, <F*>, <Fr>
(Acquired 12/6/96, Cost $9,020,004) 666,667 $4,250,002
----------------
Retail (0.79)
Albertson's, Inc. 100,000 $5,156,250
Wal-Mart Stores, Inc. 20,000 965,000
----------------
$6,121,250
----------------
Retail - Specialty (0.35%)
The Gap, Inc. 30,000 $1,511,250
Walgreen Company 40,000 1,175,000
----------------
$2,686,250
----------------
Telecommunications Service (0.17%)
Bell Atlantic Corporation 20,000 $1,307,500
----------------
Utilities (Gas, Electric & Water) (3.35%)
Ameren Corporation 272,200 $10,445,675
Western Resources, Inc. 580,100 15,445,163
----------------
$25,890,838
----------------
Miscellaneous (2.89%) $22,289,901
----------------
Total Common Stocks (Cost $164,052,650) $152,369,898
----------------
<PAGE>
PREFERRED STOCKS (51.29%)
Airline (3.86%)
Trans World Airlines, Inc.
$4.625 convertible - Rule 144A <Fr> (Acquired
11/26/97 - 7/7/ 98, Cost $8,876,562) 150,000 $5,100,000
8% convertible 1,242,400 24,692,700
----------------
$29,792,700
----------------
Computer and Electronic Equipment (4.06%)
Unisys Corporation, $3.75 convertible 480,817 $31,313,207
----------------
Consumer Services (3.12%)
Cendant Corporation, 7.5% convertible 700,000 $24,106,250
----------------
Energy (4.49%)
Lasmo PLC, Series A, 10% 492,600 $12,191,850
Unocal Corporation, $3.125 convertible 400,000 22,500,000
----------------
$34,691,850
----------------
Financial Services (3.82%)
Community Bank, 13% series B 196,500 $5,231,813
Credit Lyonnais Capital S.C.A., 9.5%, - Rule 144A
<Fr> (Acquired 7/12/93, Cost $15,000,000) 600,000 14,850,000
Nuevo Financing Trust, 5.75% convertible 305,300 9,387,975
----------------
$29,469,788
----------------
Food Distribution (2.68%)
Chiquita Brands International, Inc., $2.875 Series A,
convertible 600,000 $20,700,000
----------------
Healthcare (0.70%)
Laboratory Corporation of America Holdings, 8.5%
convertible 57,700 $3,382,663
NeoRX Corporation, $2.475 convertible 139,277 1,984,697
----------------
$5,367,360
----------------
Health and Beauty Aids (0.35%)
Herbalife International, Inc., 8.75% convertible 265,500 $2,671,594
----------------
Insurance (1.23%)
AICI Capital Trust, 9% 400,000 $9,525,000
----------------
Metals Processing (5.49%)
Armco Inc., $3.625 convertible 300,000 $15,075,000
USX Corporation, 6.5% convertible 599,300 27,343,063
----------------
$42,418,063
----------------
8 See Notes to Financial Statements
<PAGE>
<PAGE>
<CAPTION>
- ---------------------------------------------------------------------------------------------
LINDNER INVESTMENTS
- ---------------------------------------------------------------------------------------------
SCHEDULES OF INVESTMENTS - JUNE 30, 1999
Number of Shares -
Principal Amount
Name of Issuer and Title of Issue of Bonds Value
- ------------------------------------------------------- ------------------ ----------------
<S> <C> <C>
LINDNER ASSET ALLOCATION FUND
- -----------------------------
Natural Gas Pipeline (5.45%)
Western Gas Resources, Inc., $2.625 convertible 1,304,700 $42,076,575
----------------
Oil & Gas Exploration and Production (0.55%)
Belco Oil & Gas Corporation, 6.5%, convertible 246,600 $4,223,025
----------------
Oilfield Services (1.53%)
Weatherford International, Inc., 5% convertible 300,000 $11,850,000
----------------
Real Estate Invesment Trusts (0.73%)
Capstead Mortgage Corporation, $1.26 convertible 200,000 $2,362,500
Prime Retail, Inc., $2.125 convertible 202,600 3,241,600
----------------
$5,604,100
----------------
Specialty Chemical (0.90%)
LSB Industries, Inc., $3.25 convertible 422,700 $6,974,550
----------------
Steel Production (2.82%)
Bethlehem Steel Corporation, $3.50 convertible -
Rule 144A <Fr> (Acquired 8/1/97 - 11/5/98,
Cost $25,802,945) 600,000 $21,750,000
----------------
Telecommunications Service (6.83%)
Omnipoint Corporation, 7% convertible 625,000 $34,687,500
Nextlink Communications, Inc., 6.50% convertible 200,000 18,100,000
----------------
$52,787,500
----------------
Transportation (2.68%)
Union Pacific Corporation, 6.25% convertible 300,000 $15,525,000
Union Pacific Corporation, 6.25% convertible -
Rule 144A <Fr> (Acquired 7/30/98 - 7/31/98,
Cost $4,518,750) 100,000 5,175,000
----------------
$20,700,000
----------------
Total Preferred Stocks (Cost $396,018,419) $396,021,562
----------------
NON-CONVERTIBLE BONDS (10.56%)
Airlines (1.35%)
Trans World Airlines, Inc., 12%, due 2002 $10,750,000 $10,427,500
----------------
Apparel & Other Textile Products (2.09%)
Hartmarx Corporation, 10.875%, due 2002 15,555,000 $16,099,425
----------------
Financial Services (3.82%)
Beal Financial Corp., 12.75% due
8/15/00 $26,100,000 $26,458,875
Wilshire Financial Services Group, 13%,
due 2004 (##) 10,000,000 3,050,000
----------------
$29,508,875
Mining (2.50%)
Kaiser Aluminum & Chemical Corporation, 9.875%,
due 2002 19,050,000 $19,335,750
----------------
Utilities (Gas, Electric & Water) (0.80%)
Texas-New Mexico Power Company, 9.25%, due 2000 6,000,000 $6,176,634
----------------
Total Non-Convertible Bonds
(Cost $87,682,729) $81,548,184
----------------
CONVERTIBLE BONDS (8.96%)
Computer and Electronic Equipment (4.01%)
Cirrus Logic, Inc. 6%, due 2003 7,120,000 $4,903,900
Intevac Inc.
Common Stock 6.5%, due 2004 13,152,000 8,236,440
Common Stock 6.5%, due 2004 -
Rule 144A <Fr> (Acquired 1/22/98 -
3/19/98, Cost $2,604,643) 3,098,000 1,940,123
Network Equipment Technologies, Inc.,
7.25%, due 2014 2,360,000 1,722,800
Quantum Corporation, 7%, due 2004 15,000,000 14,175,000
----------------
$30,978,263
----------------
<PAGE>
Environmental Services (0.65%)
U.S. Filter Corporation, 4.5%, due 2001 5,000,000 $5,025,000
----------------
Healthcare (0.11%)
Atrix Laboratories, Inc., 7%, due 2004 -
Rule 144A <Fr> (Acquired 12/4/98 - 12/8/98,
Cost $903,620) 1,050,000 $876,750
----------------
Mining (0.35%)
Uranium Resources, Inc., 6.5%, due 2000 -
Rule 144A <Fr> (Acquired 5/25/95,
Cost $4,500,000) 4,500,000 $2,700,000
----------------
Real Estate Investment Trust (0.90%)
Sizeler Property Investors, Inc., 8%, due 2003 7,300,000 $6,898,500
----------------
Retail (1.04%)
Charming Shoppes, 7.5% due 2006 8,000,000 $8,020,000
----------------
Telecommunications (1.45%)
Metricom, Inc., 8%, due 2003 7,905,000 $11,185,575
----------------
Telecommunication Equipment (0.45%)
Cellstar Corporation, 5% due 2002 5,000,000 $3,487,500
----------------
Total Convertible Bonds
(Cost $75,847,494) $69,171,588
----------------
See Notes to Financial Statements 9
<PAGE>
<PAGE>
<CAPTION>
- -----------------------------------------------------------------------------------------------
LINDNER INVESTMENTS
- -----------------------------------------------------------------------------------------------
SCHEDULES OF INVESTMENTS - JUNE 30, 1999
Number of Shares -
Principal Amount
Name of Issuer and Title of Issue of Bonds Value
- ------------------------------------------------------- ------------------ ----------------
<S> <C> <C>
LINDNER ASSET ALLOCATION FUND
- -----------------------------
U.S. GOVERNMENT AGENCY SECURITIES (8.71%)
FHLB, 7/23/99 $6,700,000 $6,679,773
FHLB, 7/28/99 800,000 797,156
FHLB, 7/30/99 6,000,000 5,977,067
FHLMC, 7/09/99 4,700,000 4,695,073
FHLMC, 7/19/99 1,100,000 1,097,388
FHLMC, 7/23/99 11,300,000 11,266,853
FHLMC, 7/29/99 3,100,000 3,088,523
FHLMC, 8/05/99 10,500,000 10,450,490
FMCDN, 7/13/99 800,000 798,747
FMCDN, 7/14/99 600,000 598,969
FMCDN, 7/22/99 8,200,000 8,177,231
FNMA, 7/23/99 12,400,000 12,363,627
FNMA, 8/05/99 1,300,000 1,293,681
----------------
Total U.S Government Agency Securities
(Cost $67,284,578) $67,284,578
----------------
Total Investments (Cost $790,885,870) 99.25% $766,395,810
Excess of Other Assets over Liabilities 0.75% $5,756,662
-------------- ----------------
Net Assets 100.00% $772,152,472
============== ================
<FN>
<F*> Non-income producing
<Fa> Denotes security is affiliated (See Note 5)
<Fr> Denotes security is restricted as to resale. The aggregate value of restricted
securities at June 30, 1999 was $56,641,875 which represented 7.34% of net assets.
(##) Denotes bond is in default
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>
10
<PAGE>
<PAGE>
PERFORMANCE SUMMARY
The Lindner Utility Fund had a total return of 8.62% in the fiscal
year ended June 30, 1999. The performance of the Dow Jones Utilities
Index and the Russell 2000 was 11.87% and 1.45%, respectively,
covering the same period.
In the first quarter of the fiscal year, our fund performed poorly
by -16.15% vs. the Dow Jones Utilities Index performance of 5.36% in
the same time period. Some of our Russian utility stocks became very
illiquid during the time of the economic turmoil in that country and
the holdings were eliminated at significant cost. Another
unfortunate position was a firm specific loss on the Uranium
Resources, Inc. holdings as the firm relinquished its leasing rights
to one of its main uranium deposits in late 1998.
The fund's performance for the next three quarters--4.03%, 6.51% and
16.92%, respectively--was excellent. The main drivers for this
performance were the carefully chosen telecommunication sector
positions. The top performer for the year was RCN Corporation, a
cable telecommunications company. The recent war for bandwidth among
large technology related blue chip firms is an indicator that the
growth potential of the data/bandwidth-related telecommunications
companies is strong.
The performance of our holdings in the oil and energy industries has
lagged the telecommunications industry performance. Our worst
performing position in the fund was the Harken Energy Corporation
holdings. Although the company was believed to be priced
attractively, it should be noted that the performance of this type
of company is highly exposed to commodity prices.
The investment philosophy for the whole fund family has been
reviewed for a better adjustment to the changing nature of capital
markets, shifting closer towards modern financial economics
principles. The classical Lindner value approach has been updated
and enhanced to evaluate 'value' in relative terms rather than in
absolute terms. Under the new approach, the value of a firm is
evaluated by looking at the firm's current cash flows coupled with
the expected future cash flows. Price, in fact, is a result and is
dependent on people's expectations. Mispricings are considered in
the relative frame; the value created by a company's expected future
cash flows should be in line with similar companies.
The increasing volatility of the markets puts stricter risk
management requirements on the money management side. The key tool
to sound risk management is diversification. Cross-sectional
diversification should be applied by broadening the investments
universe (i.e. increasing the number of stocks in a portfolio) and
adjusting the holding weights accordingly in order to avoid taking
fundamental/company specific bets. On the other hand, time
diversification should also be applied by making proper asset
allocation decisions to reduce the dependence of the portfolios to
specific asset types. Liquidity is also a major consideration for the
funds' holdings in that if our opinion on a security changes, the market
for the security will be broad enough so that the securities price
will be relatively unaffected by our liquidation.
Since our new risk management approach consciously avoids taking
large common factor<F*> exposures, the performance of the fund becomes
largely dependent on management's investment skill. Common factor
exposures may provide better performance in certain times, but are
very risky. On the other hand, performance coming from a sound stock
selection strategy provides consistent, lower volatility returns,
which should result in healthy asset growth in the long-term.
/s/ Doug Valassis /s/ Mark T. Finn /s/ Eric Ryback
Doug Valassis Mark T. Finn Eric E. Ryback
Chairman and Chief Vice Chairman and President
Executive Officer Chief Operating Officer
[FN]
<F*>Common factor risk is portfolio risk that arises from assets'
exposures to common factors, such as capitalization and industries.
(Source: Barra U.S. Equity Risk Model Handbook, page 34)
LINDNER UTILITY FUND
PERFORMANCE GRAPH
- -------------------------------------------------------------------
Comparison of change in value of $10,000 invested in the Dow
Jones Utility Index, the NYSE Utilities Index and the Lindner Utility
Fund--Investor Shares from October 4, 1993 to June 30, 1999 and
Institutional Shares from October 31, 1996 to June 30, 1999:
[Utility Fund graph]
PAST PERFORMANCE IS NOT PREDICTIVE OF FUTURE PERFORMANCE
11
<PAGE>
<PAGE>
<TABLE>
- -----------------------------------------------------------------------------------------------
LINDNER INVESTMENTS
- -----------------------------------------------------------------------------------------------
SCHEDULES OF INVESTMENTS - JUNE 30, 1999
<CAPTION>
Number of Shares -
Principal Amount
Name of Issuer and Title of Issue of Bonds Value
- ------------------------------------------------------- ------------------ ----------------
<S> <C> <C>
LINDNER UTILITY FUND
- --------------------
COMMON STOCKS (72.54%)
Broadcast/Media (5.58%)
AT&T Corporation Class A Liberty Media Group
Shares <F*> 40,000 $1,470,000
----------------
Cable Television (1.04%)
Rogers Cantel Mobile Communications, Inc.,
Class B<F*> 17,000 $275,188
----------------
Computer and Electronic Equipment (0.45%)
Cellstar Corporation <F*> 15,000 $118,125
----------------
Electrical Generation (1.97%)
MidAmerican Energy Holdings Company 15,000 $519,375
----------------
Energy (1.77%)
The AES Corporation 8,000 $465,000
----------------
Natural Gas Pipeline (4.34%)
Enron Corporation 14,000 $1,144,500
----------------
Oil and Gas Exploration and Production (2.75%)
Harken Energy Corporation <F*> 445,000 $723,125
----------------
Oilfield Services (1.20%)
Transocean Offshore, Inc. 12,000 $315,000
----------------
Telecommunication Equipment (7.96%)
Com21, Inc. <F*> 10,000 $170,625
Emerson Electric Company 10,000 628,750
Westell Technologies, Inc. <F*> 70,000 487,816
Western Wireless Corporation <F*> 30,000 810,000
----------------
$2,097,191
----------------
Telecommunication Services (20.84%)
GTE Corporation 8,000 $606,000
MCI/Worldcom, Inc. <F*> 13,000 1,121,250
McLeodUSA, Inc., Class A <F*> 7,000 385,000
Nextel Communications, Inc. <F*> 13,000 652,438
RCN Corporation <F*> 14,000 582,750
SBC Communications, Inc. 10,000 580,000
SkyTel Communications, Inc. <F*> 21,000 439,688
U S WEST, Inc. 5,000 293,750
Winstar Communications, Inc. <F*> 17,000 828,750
----------------
$5,489,626
----------------
Utilities (Gas, Electric & Water) (21.86%)
Central and South West Corporation 10,000 $233,750
CMP Group, Inc. 15,000 392,813
Edison International 20,000 535,000
El Paso Electric Company <F*> 65,000 580,938
FPL Group, Inc. 18,000 983,250
LG&E Energy Corporation 15,000 315,000
Pacificorp 10,000 183,750
Pinnacle West Capital Corporation 10,000 402,500
Potomac Electric Power Company 12,000 353,250
TECO Energy, Inc. 30,000 682,500
Texas Utilities Company 10,000 412,500
UniSource Energy Corporation 30,000 358,125
Wisconsin Energy Corporation 13,000 325,813
----------------
$5,759,189
----------------
Miscellaneous (2.78%) $733,760
----------------
Total Common Stocks (Cost $15,489,425) $19,110,079
----------------
<PAGE>
PREFERRED STOCKS (15.00%)
Natural Gas Pipeline (3.71%)
Western Gas Resources, Inc., $2.625 convertible 30,300 $977,175
----------------
Telecommunication Equipment (3.25%)
Qwest Trends Trust, 5.75% convertible - Rule 144A
<Fr> (Acquired 12/15/98 - 12/17/98, Cost $626,875) 15,000 $856,875
----------------
Telecommunication Service (8.04%)
Nextlink Communications, Inc. 6.50% convertible 5,000 $452,500
Omnipoint Corporation, 7% convertible 30,000 1,665,000
----------------
$2,117,500
----------------
Total Preferred Stocks (Cost $2,576,278) $3,951,550
----------------
U.S. GOVERNMENT AGENCY SECURITIES (11.74%)
FHLB, 7/02/99 $300,000 $299,961
FHLB, 7/30/99 600,000 597,709
FHLMC, 7/09/99 300,000 299,683
FHLMC, 7/16/99 800,000 798,433
FHLMC, 7/19/99 100,000 99,762
FHLMC, 7/29/99 200,000 199,259
FHLMC, 8/05/99 400,000 398,114
FMCDN, 7/22/99 100,000 99,722
FNMA, 7/21/99 100,000 99,725
FNMA, 7/23/99 100,000 99,707
FNMA, 8/05/99 100,000 99,514
----------------
Total U.S Government Agency Securities
(Cost $3,091,589) $3,091,589
----------------
Total Investments (Cost $21,157,292) 99.28% $26,153,218
Excess of Other Assets over Liabilities 0.72% $188,430
-------------- ----------------
Net Assets 100.00% $26,341,648
============== ================
<FN>
<F*> Non-income producing
<Fr> Denotes security is restricted as to resale. The aggregate value of restricted
securities at June 30, 1999 was $856,875 which represented 3.25% of net assets.
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>
12
<PAGE>
<PAGE>
PERFORMANCE SUMMARY
The Lindner Small-Cap Fund had a total return of 0.11% in the fiscal
year ended June 30, 1999. The performance of the Russell 2000 Index
covering the same period was 1.45%.
The fund returned -15.78% for the first quarter of the fiscal year
followed by a better second quarter with a return of 11.65%. The
third quarter return was -9.11%. The performance of the Russell 2000
Index, which is the benchmark for the small cap fund, was -20.26%,
16.46%, and -5.44%, respectively for the same quarters.
The rise in the market, which started shortly after the global
economic turmoil in 1998, was more generous to large cap growth
stocks. The fund had a relatively small number of holdings that
caused our performance to be tied to only a few companies. We did
not participate well in the small cap recovery period in the market
due to some concentrated stock holdings that did not perform as well
as expected.
The fourth fiscal quarter witnessed a change in the investment
philosophy of the whole fund family, which was the beginning of an
important restructuring process. The structural changes in the fund
began immediately.
The performance results for the fourth quarter reflected the first
fruits of the change process. The changes in the fund produced a
17.15% quarterly return, which was solidly above the performance of
the Russell 2000 Index of 15.52%. Some of the new investment choices
are: Polycom Inc., Copart, Inc., Intervoice, Inc., and Xircom, Inc.
The investment philosophy for the whole fund family has been
reviewed for a better adjustment to the changing nature of capital
markets, shifting closer towards modern financial economics
principles. The classical Lindner value approach has been updated
and enhanced to evaluate 'value' in relative terms rather than in
absolute terms. Under the new approach, the value of a firm is
evaluated by looking at the firm's current cash flows coupled with
the expected future cash flows. Price, in fact, is a result and is
dependent on people's expectations. Mispricings are considered in
the relative frame; the value created by a company's expected future
cash flows should be in line with similar companies.
The increasing volatility of the markets puts stricter risk
management requirements on the money management side. The key tool
to sound risk management is diversification. Cross-sectional
diversification should be applied by broadening the investments
universe (i.e. increasing the number of stocks in a portfolio) and
adjusting the holding weights accordingly in order to avoid taking
sector/fundamental/company specific bets. On the other hand, time
diversification should also be applied by making proper asset
allocation decisions to reduce the dependence of the portfolios to
specific asset types. Liquidity is also a major consideration for
the funds holdings in that if our opinion on a security changes, the
market for the security will be broad enough so that the securities
price will be relatively unaffected by our liquidation.
Since our new risk management approach consciously avoids taking
large common factor<F*> exposures, the performance of the fund becomes
largely dependent on management's investment skill. Common factor
exposures may provide better performance in certain times, but are
very risky. On the other hand, performance coming from a sound stock
selection strategy provides consistent, lower volatility returns,
which should result in healthy asset growth in the long-term.
/s/ Doug Valassis /s/ Mark T. Finn /s/ Eric Ryback
Doug Valassis Mark T. Finn Eric E. Ryback
Chairman and Chief Vice Chairman and President
Executive Officer Chief Operating Officer
[FN]
<F*>Common factor risk is portfolio risk that arises from assets'
exposures to common factors, such as capitalization and industries.
(Source: Barra U.S. Equity Risk Model Handbook, page 34)
LINDNER SMALL-CAP (FORMERLY
LINDNER/RYBACK SMALL-CAP) FUND
PERFORMANCE GRAPH
- ------------------------------------------------------------------
Comparison of change in value of $10,000 invested in the Russell
2000 Index and the Lindner Small-Cap Fund--Investor Shares from
January 24, 1994 to June 30, 1999 and Institutional Shares from
November 1, 1996 to June 30, 1999:
[Small-Cap Fund graph]
PAST PERFORMANCE IS NOT PREDICTIVE OF FUTURE PERFORMANCE
13
<PAGE>
<PAGE>
<TABLE>
- -----------------------------------------------------------------------------------------------
LINDNER INVESTMENTS
- -----------------------------------------------------------------------------------------------
SCHEDULES OF INVESTMENTS - JUNE 30, 1999
<CAPTION>
Number of Shares -
Principal Amount
Name of Issuer and Title of Issue of Bonds Value
- ------------------------------------------------------- ------------------ ----------------
<S> <C> <C>
LINDNER SMALL-CAP FUND
- ----------------------
COMMON STOCKS (64.97%)
Apparel & Other Textile Products (1.73%)
Fruit of the Loom, Ltd. <F*> 70,000 $682,500
----------------
Business Services (1.91%)
On Assignment, Inc. <F*> 21,000 $548,625
TeleTech Holdings, Inc. <F*> 20,500 207,563
----------------
$756,188
----------------
Computer and Electronic Equipment (4.75%)
Anacomp, Inc. <F*> 66,300 $1,127,100
Xircom, Inc. <F*> 25,000 751,563
----------------
$1,878,663
----------------
Distributors (2.57%)
Hawkins Chemical, Inc. 125,000 $1,015,625
----------------
Energy (6.31%)
Castle Energy Corporation 49,000 $882,000
Plains Resources, Inc. <F*> 84,800 1,611,200
----------------
$2,493,200
----------------
Food Distribution (1.11%)
Richfood Holdings 25,000 $440,625
----------------
Healthcare (7.04%)
National Dentex Corporation <F*> 75,000 $1,293,750
Pediatrix Medical Group, Inc. <F*> 30,000 637,500
Utah Medical Products, Inc. 110,000 852,500
----------------
$2,783,750
----------------
Industrial Products and Services (0.78%)
Transtechnology Corporation 15,700 $309,094
----------------
Insurance (5.39%)
Cotton States Life Insurance Company 87,500 $1,071,875
Mid Atlantic Medical Services, Inc. <F*> 107,400 1,060,575
----------------
$2,132,450
----------------
Manufacturing - Consumer Goods (1.33%)
Sturm, Ruger & Company, Inc. 49,300 $526,894
----------------
Paper, Printing and Publishing (2.86%)
Consolidated Graphics, Inc. <F*> 12,500 $625,000
United Stationers, Inc. <F*> 23,000 506,000
----------------
$1,131,000
----------------
Pipeline Services (1.74%)
Kaneb Services, Inc. <F*> 161,800 $687,650
----------------
Real Estate Investment Trust (8.37%)
Lexford Residential Trust 70,500 $1,683,188
Tanger Factory Outlet Centers, Inc. 62,500 1,625,000
----------------
$3,308,188
----------------
Restaurants and Food Preparation (1.47%)
Buffets, Inc. <F*> 50,500 $580,750
----------------
Retail - Specialty (5.53%)
Brauns Fashions Corp. <F*> 111,800 $1,600,138
Micro Warehouse, Inc. <F*> 32,800 586,300
----------------
$2,186,438
----------------
Software (6.37%)
Best Software, Inc. <F*> 40,000 $645,000
Fair, Isaac & Company, Inc. 18,000 631,125
Progess Software Corporation <F*> 25,000 706,250
TAVA Technologies, Inc. <F*> 70,000 538,125
----------------
$2,520,500
----------------
<PAGE>
Telecommunications Equipment (1.10%)
InterVoice, Inc. <F*> 30,000 $433,125
----------------
Miscellaneous (4.61%) $1,821,677
----------------
Total Common Stocks (Cost $20,950,334) $25,688,317
----------------
U.S. GOVERNMENT AGENCY SECURITIES (32.79%)
FHLB, 7/02/99 $500,000 $499,935
FHLB, 7/28/99 2,500,000 2,491,113
FHLB, 7/30/99 500,000 498,091
FHLMC, 7/02/99 700,000 699,909
FHLMC, 7/07/99 200,000 199,842
FHLMC, 7/09/99 800,000 799,154
FHLMC, 7/29/99 2,300,000 2,291,485
FMCDN, 7/14/99 1,100,000 1,098,114
FMCDN, 7/22/99 1,800,000 1,795,002
FNMA, 7/21/99 100,000 99,725
FNMA, 7/23/99 1,800,000 1,794,665
FNMA, 8/05/99 700,000 696,597
----------------
Total U.S Government Agency Securities
(Cost $12,963,632) $12,963,632
----------------
Total Investments (Cost $33,913,966) 97.76% $38,651,949
Excess of Other Assets over Liabilities 2.24% $883,886
-------------- ----------------
Net Assets 100.00% $39,535,835
============== ================
<FN>
<F*> Non-income producing
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>
14
<PAGE>
<PAGE>
PERFORMANCE SUMMARY
The Lindner Market Neutral Fund had a total return of 4.29% in the
fiscal year ended June 30, 1999. The performance of the Dow Jones
Industrial Average Index and the Russell 2000 was 24.66% and 1.45%,
respectively, covering the same fiscal period.
Our short positions in the Bulwark Fund provided good protection in
the bear market last summer with a return for the quarter ended
September 30, 1998 of 3.72%. The advantage of short stocks in the
bear market became the disadvantage in the following bull market,
slowing down the returns for the next quarter to
- -0.67%. In the third quarter, the performance improved back to
1.06%, followed by the fourth quarter closing the fiscal year at
0.18%.
Our heavy positions in the mining sector failed to perform due to an
opposing trend in the commodity and natural resources prices. There
has been a company-specific loss on the Uranium Resources, Inc.
holdings as the firm relinquished its leasing rights to one of its
main uranium deposits in late 1998. On the other hand, our most
successful investment was a healthcare company, Hooper Holmes, Inc.,
a holding which appreciated substantially in the past fiscal year.
The bull market that followed the global economic turmoil was much
more generous to the stocks in the aggressive growth category,
especially stocks in the technology and telecommunications sectors.
These stocks advanced much faster than what many on the Street may
have imagined. Institutions and investors became increasingly aware
of the great potential of the digital economy and rewarded the
companies providing direct business or infrastructure for the coming
digital revolution. The market was very harsh to companies that
failed to adjust their business models for the coming change and
extremely generous to young firms that directly targeted digital
business. The relatively high prices of these young firms are the
result of highly optimistic expectations on this sector. Time will
tell whether these firms fulfill the performance expected of them.
An important side effect of the significant advance in aggressive
growth companies has been increased capital market volatility. The
emergence of various electronic trading companies has given millions
of inexperienced individuals (in terms of investing) the opportunity
to invest directly in all sorts of financial instruments. This
enormous flow of capital has significantly contributed to the
increased market turbulence.
There were adjustments to investment philosophy. The name of the
former Lindner Bulwark Fund was changed to Lindner Market Neutral
Fund in the fourth fiscal quarter. The new market-neutral structure
of the fund is designed to help protect the investments
(continued on next page)
LINDNER MARKET NEUTRAL (FORMERLY
BULWARK) FUND
PERFORMANCE GRAPH
- ---------------------------------------------------------------------
Comparison of change in value of $10,000 invested in the S&P 500
Index and the Lindner Market Neutral Fund<F1>--Investor Shares from
February 11, 1994 to June 30, 1999 and Institutional Shares from
July 11, 1996 to June 30, 1999:
[Market Neutral Fund graph]
PAST PERFORMANCE IS NOT PREDICTIVE OF FUTURE PERFORMANCE
[FN]
- ----------
<F1> Until July 1, 1999, this Fund was managed with a different investment
objective and different principal investment strategies.
15
<PAGE>
<PAGE>
against potential downturns in the market. The portfolio is
delicately balanced including both long and short equity positions
so that the overall market exposure is dramatically reduced from the
portfolio.
The investment philosophy for the whole fund family has been
reviewed for a better adjustment to the changing nature of capital
markets, shifting closer towards modern financial economics
principles. The classical Lindner value approach has been updated
and enhanced to evaluate 'value' in relative terms rather than in
absolute terms. Under the new approach, the value of a firm is
evaluated by looking at the firm's current cash flows coupled with
the expected future cash flows. Price, in fact, is a result and is
dependent on people's expectations. Mispricings are considered in
the relative frame; the value created by a company's expected future
cash flows should be in line with similar companies.
The increasing volatility of the markets puts stricter risk
management requirements on the money management side. The key tool
to sound risk management is diversification. Cross-sectional
diversification should be applied by broadening the investment
universe (i.e., increasing the number of stocks in a portfolio) and
adjusting the holding weights accordingly in order to avoid taking
sector/fundamental/company specific bets. On the other hand, time
diversification should also be applied by making proper asset
allocation decisions to reduce the dependence of the portfolios to
specific asset types. Liquidity is also a major consideration for
the funds' holdings in that if our opinion on a security changes,
the market for the security will be broad enough so that the
securities price will be relatively unaffected by our liquidation.
Since our new risk management approach consciously avoids taking
large common factor<F*> exposures, the performance of the fund becomes
largely dependent on management's investment skill. Common factor
exposures may provide better performance in certain times, but are
very risky. On the other hand, performance coming from a sound stock
selection strategy provides consistent, lower volatility returns,
which should result in healthy asset growth in the long-term.
/s/ Doug Valassis /s/ Mark T. Finn /s/ Eric Ryback
Doug Valassis Mark T. Finn Eric E. Ryback
Chairman and Chief Vice Chairman and President
Executive Officer Chief Operating Officer
[FN]
<F*>Common factor risk is portfolio risk that arises from assets'
exposures to common factors, such as capitalization and industries.
(Source: Barra U.S. Equity Risk Model Handbook, page 34)
16
<PAGE>
<PAGE>
<TABLE>
- -----------------------------------------------------------------------------------------------
LINDNER INVESTMENTS
- -----------------------------------------------------------------------------------------------
SCHEDULES OF INVESTMENTS - JUNE 30, 1999
<CAPTION>
Number of Shares -
Principal Amount
Name of Issuer and Title of Issue of Bonds Value
- ------------------------------------------------------- ------------------ ----------------
<S> <C> <C>
LINDNER MARKET NEUTRAL FUND
- ---------------------------
COMMON STOCKS (23.30%)
Broadcast/Media (2.83%)
AT&T Corporation Class A Liberty Media Group
Shares <F*> 14,000 $514,500
----------------
Computer and Electronic Equipment (0.83%)
Intevac, Inc. <F*> 27,500 $151,250
----------------
Distributors (1.81%)
Hand Technologies, Inc., - Rule 144A <F*>, <Fr>
(Acquired 4/25/ 97, Cost $330,000) 528,000 $330,000
----------------
Financial Services (1.16%)
Equifax, Inc. 5,900 $210,556
----------------
Healthcare (3.74%)
EndoSonics Corporation <F*> 10,000 $70,000
Hooper Holmes, Inc. 30,000 611,250
----------------
$681,250
----------------
Industrial Products and Services (3.16%)
Blount International, Inc., Class A 15,000 $407,813
Kaydon Corporation 5,000 168,125
----------------
$575,938
----------------
Leisure/Entertainment (2.48%)
The Todd-AO Corporation, Class A 41,000 $451,000
----------------
Manufacturing (2.55%)
Fortune Brands, Inc. 7,000 $289,625
Lindsay Manufacturing Company 10,000 175,625
----------------
$465,250
----------------
Medical Services (0.76%)
American Physicians Service Group, Inc. <F*> 38,000 $137,750
----------------
Software (2.79%)
Periphonics Corporation <F*> 31,000 $507,625
----------------
Transportation (1.19%)
Simon Transportation Services, Inc. <F*> 43,800 $216,263
----------------
Total Common Stocks (Cost $4,974,227) $4,241,382
----------------
CONVERTIBLE BONDS (4.95%)
Mining (4.95%)
Uranium Resources Inc., 6.5%, due 2000 -
Rule 144A <Fr> (Acquired
5/25/95-6/25/97, Cost $1,510,252) $1,500,000 $900,000
----------------
U.S GOVERNMENT AGENCY SECURITIES (55.34%)
FHLB, 07/02/99 $3,100,000 $3,099,594
FHLMC, 07/19/99 900,000 895,013
FHLMC, 08/05/99 800,000 796,228
FHLMC, 7/02/99 100,000 99,987
FHLMC, 7/08/99 $1,100,000 $1,098,988
FHLMC, 7/23/99 200,000 199,413
FHLMC, 7/29/99 200,000 199,241
FHLMC, 8/9/99 300,000 298,434
FMCDN, 7/22/99 300,000 299,167
FNMA, 08/05/99 2,400,000 2,388,333
FNMA, 7/12/99 600,000 599,138
FNMA, 7/20/99 100,000 99,753
----------------
<PAGE>
Total U.S Government Agency Securities
(Cost $10,073,289) $10,073,289
----------------
Total Investments (Cost $16,557,768) 83.59% $15,214,671
Deposits with Broker for Securities Sold Short 16.96% $3,088,142
Receivable from Brokers for Securities Sold Short 20.13% $3,663,946
Securities Sold Short (22.77%) ($4,144,892)
Excess of Other Assets over Liabilities 2.09% $380,465
-------------- ----------------
Net Assets 100.00% $18,202,332
============== ================
SCHEDULE OF SECURITIES SOLD SHORT - COMMON STOCK
Able Telcom Holding Corporation 29,000 $210,250
AGCO Corporation 20,000 226,250
Altair International, Inc. 11,500 59,656
Bally Total Fitness Holding Corporation 16,000 454,000
BioTime, Inc. 4,500 52,594
Elan Corporation PLC - ADR 8,200 227,550
Finning International, Inc. 22,000 193,243
Geltex Pharmaceuticals, Inc. 13,000 234,000
International Telecommunications Data System 13,000 130
Mossimo, Inc. 17,000 151,938
The Profit Recovery Group International, Inc. 10,400 492,050
Provident Financial Group, Inc. 13,000 568,750
Recoton Corporation 10,000 90,938
Sylvan Learning Systems, Inc. 10,500 285,469
Tandy Corporation 10,600 518,074
Terex Corporation 8,000 243,500
Vitech America, Inc. 13,000 136,500
----------------
$4,144,892
================
<FN>
<F*> Non-income producing
<Fr> Denotes security is restricted as to resale. The aggregate value of restricted
securities at June 30, 1999 was $1,230,000 which represented 6.76% of net assets.
ADR = American Depository Receipts.
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>
17
<PAGE>
<PAGE>
MANAGEMENT COMMENT
The Lindner Government Money Market 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 income.
To achieve these primary goals, the fund is invested in two broad
based asset components. The fund invests about 54% of its' assets in
repurchase agreements with a daily reset of the interest and in
short discount notes issued by Agencies of the U.S. Government. The
balance of the fund is invested in Bills and Notes of the U.S.
Treasury and obligations of Government Agencies. These securities
all have maturities of less than thirteen months.
The reason for investing in this manner is to maintain the necessary
liquidity while at the same time generating returns that are above
those of very short investments. By varying the two components
listed above the manager seeks to add value for the shareholders.
This is also accomplished by lengthening or shortening the average
maturity based upon the managers view of interest rates and the
shape of the yield curve.
The portfolio has generally been invested with a longer maturity
than other similar funds. The average maturity as of June 30, 1999
was 64 days versus the peer group average of 54 days. This was based
upon our belief that rates will generally decline as we move through
the rest of the year. While the Federal Reserve has been in the mode
of tightening, we believe that the end is in sight for further
tightening. We believe that economic growth will remain steady and
that inflation will likewise remain under control. Therefore, we
believe rates have currently backed up too far and are likely to
decline from here. Having a longer average maturity should allow
this fund to perform well versus its' peers.
This outperformance has continued to be the case as the fund was
well in the top half of its' peer group for the past 6 month and
1 year periods.
/s/ Doug Valassis /s/ Mark T. Finn
Doug Valassis Mark T. Finn
Chairman and Chief Vice Chairman and
Executive Officer Chief Operating Officer
/s/ Eric Ryback
Eric E. Ryback
President
LINDNER GOVERNMENT
MONEY MARKET FUND
- --------------------------------------------------------------------
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.
18
<PAGE>
<PAGE>
<TABLE>
- -----------------------------------------------------------------------------------------------
LINDNER INVESTMENTS
- -----------------------------------------------------------------------------------------------
SCHEDULES OF INVESTMENTS - JUNE 30, 1999
<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 (88.30%)
FCDN, 7/15/99 $100,000 $99,804
FFCB, 5.55%, 7/1/99 475,000 475,000
FHLB, 10/08/99 700,000 690,664
FHLB, 4.79%, 2/04/00 1,000,000 998,743
FHLB, 4.92%, 10/27/99 2,000,000 2,000,000
FHLB, 5.0%, 10/27/99 1,000,000 1,000,000
FHLB, 5.02%, 05/12/00 1,000,000 999,180
FHLB, 5.14%, 3/17/00 1,000,000 1,000,000
FHLB, 5.75%, 12/20/99 1,000,000 1,003,993
FHLB, 8/13/99 750,000 745,709
FHLMC, 6/13/99 1,000,000 949,318
FHLMC, 7/02/99 2,935,000 2,934,589
FHLMC, 7/09/99 1,000,000 998,922
FHLMC, 7/16/99 290,000 289,390
FMCDN, 11/19/99 1,000,000 981,122
FMCDN, 7/1/99 1,028,000 1,028,000
FMCDN, 7/12/99 2,200,000 2,196,794
FMCDN, 7/13/99 1,000,000 998,410
FMCDN, 7/14/99 1,000,000 998,263
FMCDN, 7/15/99 200,000 199,607
FMCDN, 7/6/99 3,000,000 2,998,054
FNMA, 5.10%, 3/16/00 1,000,000 1,000,070
FNMA, 6.07%, 10/18/99 100,000 100,326
FNMA, 7.18%, 11/01/99 30,000 30,150
FNMA, 7.2%, 7/19/99 20,000 20,021
FNMA, 7/12/99 299,000 298,539
FNMA, 7/2/99 500,000 499,934
FNMA, 7/7/99 2,220,000 2,218,287
FNMA, 8.45%, 7/12/99 600,000 600,623
FNMA, 9.05%, 4/10/00 1,200,000 1,235,101
FCDN, 7/16/99 $115,000 $114,758
SLMA, 4.90%, 10/27/99 2,000,000 2,000,000
SLMA, 5.53%, 7/16/99 2,000,000 2,000,466
SLMA, 5.5825%, 8/11/99 1,000,000 1,000,656
SLMA, float, 12/16/99 2,150,000 2,150,000
SLMA, float, 9/16/99 2,000,000 2,000,000
----------------
Total U.S Government Agency Securities
(Cost $38,854,493) $38,854,493
----------------
TEMPORARY CASH INVESTMENTS (10.82%)
Repurchase Agreements (10.82%)
Donaldson, Lufkin & Jenrette Corporation dated
6/30/99, 4.82% due 7/1/99 (Cost $4,761,000) $4,761,000 $4,761,000
----------------
Total Investments (Cost $43,615,493) 99.12% $43,615,493
Excess of Other Assets over Liabilities 0.88% $387,593
-------------- ----------------
Net Assets 100.00% $44,003,086
============== ================
<FN>
FCDN = Federal Farm Credit Bank Discount Note
FFCB = Federal Farm Credit Bank
FHLB = Federal Home Loan Banks
FHLMC = Federal Home Loan Mortgage Corporation
FMCDN = Federal Home Loan Mortgage Corporation Discount Note
FNMA = Federal National Mortgage Association
SLMA = Student Loan Marketing Association
See Notes to Financial Statements
</TABLE>
19
<PAGE>
<PAGE>
<TABLE>
- -------------------------------------------------------------------------------------------------------------
LINDNER INVESTMENTS
- -------------------------------------------------------------------------------------------------------------
STATEMENTS OF OPERATIONS
FOR THE YEAR ENDED JUNE 30, 1999
<CAPTION>
LINDNER ASSET
LINDNER LARGE-CAP FUND ALLOCATION FUND
------------------------ ------------------------
<S> <C> <C>
INVESTMENT INCOME
Income:
Dividends
Unaffiliated issuers (net of withholding taxes
of $84,425, $171,631, $0 and $3,514,
respectively) $5,648,700 $62,243,243
Affiliated issuers (Non-controlled) 2,211,677 603,038
Amortization 2,279,483 4,226,874
Interest (net of withholding taxes of $0, $4,066,
$0 and $0, respectively) 1,014,247 31,835,049
------------------------ ------------------------
Total income 11,154,107 98,908,204
------------------------ ------------------------
Expenses:
Management fees (Note 3) 2,270,334 5,949,294
Registration and regulatory fees 33,614 32,747
Professional fees 172,656 196,248
Custodian fees 144,634 94,153
Transfer agent fees (Note 3) 394,909 572,183
Shareholder communications 194,487 285,120
Organizational expense (Note 4) -- --
Other expenses 228,367 337,562
12b-1 fees - Institutional shares 646 6,156
------------------------ ------------------------
Total expenses 3,439,647 7,473,463
Fees paid indirectly (Note 6) (19,393) (39,481)
------------------------ ------------------------
Net expenses 3,420,254 7,433,982
------------------------ ------------------------
Net investment income 7,733,853 91,474,222
------------------------ ------------------------
REALIZED AND UNREALIZED GAIN (LOSS) FROM
INVESTMENTS AND FOREIGN CURRENCY TRANSACTIONS:
Net realized gain (loss) on investments of
unaffiliated issuers 2,873,525 (47,262,471)
Net realized (loss) gain on investments of
affiliated issuer (Non-controlled) (7,623,652) (7,649,197)
Net realized loss on foreign currency transactions (15,766) (9,794)
------------------------ ------------------------
Net realized loss on investments and foreign
currency transactions (4,765,893) (54,921,462)
------------------------ ------------------------
Change in unrealized appreciation (depreciation) on
investments (144,771,321) (152,145,130)
Change in unrealized appreciation (depreciation) on
translation of assets and liabilities in foreign
currencies 53 --
------------------------ ------------------------
Change in unrealized appreciation on investments
and translation of assets and liabilities in
foreign currencies (144,771,268) (152,145,130)
------------------------ ------------------------
NET (DECREASE) INCREASE IN NET ASSETS RESULTING
FROM OPERATIONS ($141,803,308) ($115,592,370)
======================== ========================
<PAGE>
<CAPTION>
LINDNER UTILITY FUND LINDNER SMALL-CAP FUND
------------------------ ------------------------
<S> <C> <C>
INVESTMENT INCOME
Income:
Dividends
Unaffiliated issuers (net of withholding taxes
of $84,425, $171,631, $0 and $3,514,
respectively) $751,384 $440,263
Affiliated issuers (Non-controlled) -- 79,500
Amortization 103,423 268,699
Interest (net of withholding taxes of $0, $4,066,
$0 and $0, respectively) 146,853 73
------------------------ ------------------------
Total income 1,001,660 788,535
------------------------ ------------------------
Expenses:
Management fees (Note 3) 209,232 284,515
Registration and regulatory fees 14,507 15,484
Professional fees 7,836 10,496
Custodian fees 3,631 1,932
Transfer agent fees (Note 3) 27,027 36,302
Shareholder communications 11,837 17,125
Organizational expense (Note 4) 1,254 2,954
Other expenses 13,872 15,813
12b-1 fees - Institutional shares 5 1,349
------------------------ ------------------------
Total expenses 289,201 385,970
Fees paid indirectly (Note 6) (1,038) (1,444)
------------------------ ------------------------
Net expenses 288,163 384,526
------------------------ ------------------------
Net investment income 713,497 404,009
------------------------ ------------------------
REALIZED AND UNREALIZED GAIN (LOSS) FROM
INVESTMENTS AND FOREIGN CURRENCY TRANSACTIONS:
Net realized gain (loss) on investments of
unaffiliated issuers (219,176) (1,586,511)
Net realized (loss) gain on investments of
affiliated issuers (Non-controlled) -- 297,315
Net realized loss on foreign currency transactions (109) (203)
------------------------ ------------------------
Net realized loss on investments and foreign
currency transactions (219,285) (1,289,399)
------------------------ ------------------------
Change in unrealized appreciation (depreciation) on
investments (228,747) (1,328,864)
Change in unrealized appreciation (depreciation) on
translation of assets and liabilities in foreign
currencies 44 --
------------------------ ------------------------
Change in unrealized appreciation on investments
and translation of assets and liabilities in
foreign currencies (228,703) (1,328,864)
------------------------ ------------------------
NET (DECREASE) INCREASE IN NET ASSETS RESULTING
FROM OPERATIONS $265,509 ($2,214,254)
======================== ========================
See Notes to Financial Statements
</TABLE>
20
<PAGE>
<PAGE>
<TABLE>
- ----------------------------------------------------------------------------------------------------------
LINDNER INVESTMENTS
- ----------------------------------------------------------------------------------------------------------
STATEMENTS OF OPERATIONS
FOR THE YEAR ENDED JUNE 30, 1999
<CAPTION>
LINDNER MARKET
NEUTRAL FUND
------------------------
<S> <C>
INVESTMENT INCOME
Income:
Dividends
Unaffiliated issuers $148,952
Amortization 375,097
Interest 655,226
------------------------
Total income 1,179,275
------------------------
Expenses:
Management fees (Note 3) 242,692
Registration and regulatory fees 13,578
Dividend expense - short sales 34,515
Professional fees 5,976
Custodian fees 1,481
Transfer agent fees (Note 3) 23,492
Shareholder communications 9,511
Organizational expense (Note 4) 7,010
Other expenses 10,492
------------------------
Total expenses 348,747
Fees paid indirectly (Note 6) (692)
------------------------
Net expenses 348,055
------------------------
Net investment income 831,220
------------------------
REALIZED AND UNREALIZED GAIN (LOSS) FROM
INVESTMENTS AND FOREIGN CURRENCY
TRANSACTIONS:
Net realized loss on investments of
unaffiliated issuers (8,290,711)
Net realized gain on investments of
affiliated issuers (Non-controlled) 313,721
Net realized gain on securities sold short 5,595,980
Net realized loss on option transactions (485,128)
Net realized loss on foreign currency
transactions (787)
------------------------
Net realized loss on investments and
foreign currency transactions (2,866,925)
------------------------
Change in unrealized appreciation on
investments 3,602,863
Net unrealized depreciation on securities
sold short (480,946)
Change in unrealized appreciation on
translation of assets and liabilities in
foreign currencies 528
------------------------
Change in unrealized appreciation on
investments and translation of assets
and liabilities in foreign currencies 3,122,445
------------------------
NET INCREASE IN NET ASSETS RESULTING FROM
OPERATIONS $1,086,740
========================
<PAGE>
<CAPTION>
LINDNER GOVERNMENT
MONEY MARKET FUND
------------------------
<S> <C>
INVESTMENT INCOME
Interest $2,459,314
------------------------
Expenses:
Administrator fees (Note 3) 86,008
Management fees (Note 3) 72,541
Registration and regulatory fees 22,705
Shareholder communications 14,752
Transfer agent fees (Note 3) 15,827
Organizational expense (Note 4) 4,650
Custodian expense 3,987
Other expenses 23,090
------------------------
Total expenses 243,560
Fees paid indirectly (Note 6) (1,786)
------------------------
Net expenses 241,774
------------------------
Net Investment Income $2,217,540
========================
<CAPTION>
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEARS ENDED JUNE 30, 1999 AND 1998
LINDNER GOVERNMENT MONEY MARKET FUND
------------------------------------------------------
JUNE 30, 1999 JUNE 30, 1998
------------------------ ------------------------
<S> <C> <C>
INCREASE IN NET ASSETS:
Net investment income $2,217,540 $2,102,273
------------------------ ------------------------
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income (2,217,540) (2,102,273)
------------------------ ------------------------
FUND SHARE TRANSACTIONS:
Net increase in net assets
resulting from fund shares
transactions (Note 7) 1,040,653 3,746,289
------------------------ ------------------------
TOTAL INCREASE IN NET ASSETS 1,040,653 3,746,289
Net Assets at the Beginning of the
Year 42,962,433 39,216,144
------------------------ ------------------------
Net Assets at the End of the Year $44,033,086 $42,962,433
======================== ========================
See Notes to Financial Statements
</TABLE>
21
<PAGE>
<PAGE>
<TABLE>
- ------------------------------------------------------------------------------------------------------------------------
LINDNER INVESTMENTS
- ------------------------------------------------------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEARS ENDED JUNE 30, 1999 AND JUNE 30, 1998
<CAPTION>
LINDNER LARGE-CAP FUND LINDNER ASSET ALLOCATION FUND
------------------------------------- --------------------------------------
June 30, June 30, June 30, June 30,
1999 1998 1999 1998
------------------------------------- --------------------------------------
<S> <C> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
OPERATIONS:
Net investment income $7,733,853 $17,289,831 $91,474,222 $112,573,428
Net realized (loss) gain on
investments and foreign currency
transactions (4,765,893) 135,020,698 (54,921,462) 52,875,233
Net (decrease) increase in
unrealized appreciation on
investments and translation of
assets and liabilities in foreign
currencies (144,771,268) (125,655,231) (152,145,130) 84,476,187
----------------- ----------------- ----------------- ------------------
Net (Decrease) Increase in Net
Assets (141,803,308) 26,655,298 (115,592,370) 249,924,848
----------------- ----------------- ----------------- ------------------
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income:
Investors shares (12,402,854) (17,507,539) (86,843,840) (104,805,174)
Institutional shares (4,770) (11,745) (202,520) (148,548)
From net realized gain on
investments and foreign currency
transactions:
Investors shares (99,667,727) (181,608,041) (26,512,920) (152,584,398)
Institutional shares (45,353) (131,660) (18,031) (206,827)
----------------- ----------------- ----------------- ------------------
Net decrease in net assets from
distributions to shareholders (112,120,704) (199,258,985) (113,577,311) (257,744,947)
----------------- ----------------- ----------------- ------------------
FUND SHARE TRANSACTIONS (NOTE 7):
Investors shares (315,718,742) (319,448,363) (619,542,090) (392,674,791)
Institutional shares (80,939) 420,275 1,657,048 796,552
----------------- ----------------- ----------------- ------------------
Net (Decrease) Increase in Fund
Share Transactions (315,799,681) (319,028,088) (617,885,042) (391,878,239)
----------------- ----------------- ----------------- ------------------
TOTAL (DECREASE) INCREASE IN NET ASSETS (569,723,693) (491,631,775) (847,054,723) (399,698,338)
Net Assets at the Beginning of the Year 1,003,444,616 1,495,076,391 1,619,207,195 2,018,905,533
----------------- ----------------- ----------------- ------------------
Net Assets at the End of the Year $433,720,923 $1,003,444,616 $772,152,472 $1,619,207,195
================= ================= ================= ==================
Undistributed Net Investment Income
Included in Net Assets at the End of
the Year $4,807,100 $9,480,871 $10,241,937 $5,814,077
================= ================= ================= ==================
<PAGE>
<CAPTION>
LINDNER UTILITY FUND LINDNER SMALL-CAP FUND
------------------------------------- --------------------------------------
June 30, June 30, June 30, June 30,
1999 1998 1999 1998
------------------------------------- --------------------------------------
<S> <C> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
OPERATIONS:
Net investment income $713,497 $992,000 $404,009 $510,226
Net realized (loss) gain on
investments and foreign currency
transactions (219,285) 5,763,235 (1,289,399) 2,072,221
Net (decrease) increase in
unrealized appreciation on
investments and translation of
assets and liabilities in foreign
currencies (228,703) (375,347) (1,328,864) 1,698,097
----------------- ----------------- ----------------- ------------------
Net (Decrease) Increase in Net
Assets 265,509 6,379,888 2,214,254 4,280,544
----------------- ----------------- ----------------- ------------------
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income:
Investors shares (723,226) (977,050) (510,044) (204,160)
Institutional shares (2) (397) (1,854) (910)
From net realized gain on
investments and foreign currency
transactions:
Investors shares (5,463,199) (2,523,984) (1,766,308) (1,478,918)
Institutional shares (28) (439) (6,257) (8,066)
----------------- ----------------- ----------------- ------------------
Net decrease in net assets from
distributions to shareholders (6,186,455) (3,501,870) (2,284,463) (1,692,054)
----------------- ----------------- ----------------- ------------------
FUND SHARE TRANSACTIONS (NOTE 7):
Investors shares (10,631,848) (6,692,877) (11,590,651) 26,792,123
Institutional shares (6,652) (47,963) 1,294,920 139,307
----------------- ----------------- ----------------- ------------------
Net (Decrease) Increase in Fund
Share Transactions (10,638,500) (6,740,840) (10,295,731) 26,931,430
----------------- ----------------- ----------------- ------------------
TOTAL (DECREASE) INCREASE IN NET ASSETS (16,559,446) (3,862,822) (14,794,448) 29,519,920
Net Assets at the Beginning of the Year 42,901,094 46,763,916 54,330,283 24,810,363
----------------- ----------------- ----------------- ------------------
Net Assets at the End of the Year $26,341,648 $42,901,094 $39,535,835 $54,330,283
================= ================= ================= ==================
Undistributed Net Investment Income
Included in Net Assets at the End of
the Year $36,438 $46,169 $202,702 $310,592
================= ================= ================= ==================
See Notes to Financial Statements
</TABLE>
22
<PAGE>
<PAGE>
<TABLE>
- ---------------------------------------------------------------------------------------------------
LINDNER INVESTMENTS
- ---------------------------------------------------------------------------------------------------
STATEMENT OF CHANGES IN NET ASSETS
FOR THE YEARS ENDED JUNE 30, 1999 AND JUNE 30, 1998
<CAPTION>
LINDNER MARKET NEUTRAL FUND
----------------------------------
June 30, June 30,
1999 1998
----------------------------------
<S> <C> <C>
DECREASE IN NET ASSETS:
OPERATIONS:
Net investment income $831,220 $741,936
Net realized loss on investments and foreign currency
transactions (2,866,925) (13,686,482)
Net increase in unrealized appreciation on investments
and translation of assets and liabilities in foreign
currencies 3,122,445 7,075,212
--------------- ---------------
Net Increase (Decrease) in Net Assets 1,086,740 (5,869,334)
--------------- ---------------
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income
Investors shares (735,087) (2,703,161)
Institutional shares (3) --
From net realized gain on investments and foreign
currency transactions:
Investors shares -- --
Institutional shares -- --
--------------- ---------------
Net decrease in net assets from distributions to
shareholders (735,090) (2,703,161)
--------------- ---------------
FUND SHARE TRANSACTIONS (NOTE 7):
Investors shares (10,414,209) (31,774,601)
Institutional shares 2 (1,468,360)
--------------- ---------------
Net Decrease in Fund Share Transactions (10,414,207) (33,242,961)
--------------- ---------------
TOTAL DECREASE IN NET ASSETS (10,062,557) (41,815,456)
Net Assets at the Beginning of the Year 28,264,889 70,080,345
--------------- ---------------
Net Assets at the End of the Year $18,202,332 $28,264,889
=============== ===============
Undistributed Net Investment Income Included in Net Assets
at the End of the Year $359,644 $263,514
=============== ===============
See Notes to Financial Statements
</TABLE>
23
<PAGE>
<PAGE>
- -------------------------------------------------------------------
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.
Six series of shares are currently issued by the Trust: (1)
Lindner Large-Cap Fund, (formerly known as Lindner Growth Fund),
(2) Lindner Asset Allocation Fund, (formerly known as Lindner
Dividend Fund), (3) Lindner Utility Fund, (4) Lindner Small-Cap
Fund, (formerly known as Lindner/Ryback Small-Cap Fund), (5)
Lindner Market Neutral Fund, (formerly known as Lindner Bulwark
Fund), and (6) Lindner Government Money Market Fund,
(Collectively, the "Funds"). The Lindner Large-Cap, Lindner
Asset Allocation, Lindner Utility, Lindner Small-Cap and Lindner
Market Neutral 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 Large-Cap, Lindner Asset Allocation, Lindner
Utility, Lindner Small-Cap, and Lindner Market Neutral Funds
value 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.
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 where
recovery of such taxes is not assured. 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.
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.
<PAGE>
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.
24
<PAGE>
<PAGE>
- -------------------------------------------------------------------
LINDNER INVESTMENTS
- -------------------------------------------------------------------
1. Organization and Significant Accounting Policies (continued)
Short Sales
The Lindner Market Neutral Fund 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 Large-Cap,
Lindner Market Neutral, and Lindner Small-Cap Funds declare
annual dividends from net investment income in December,
following the end of the fiscal year for these funds. The
Lindner Asset Allocation and Lindner Utility 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 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.
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.
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 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>
- --------------------------------------------------------------------------------------------------------------
<CAPTION>
Purchases Sales
------------ --------------
<S> <C> <C>
LINDNER LARGE-CAP FUND $303,089,951 $ 785,900,939
LINDNER ASSET ALLOCATION FUND 350,657,636 1,073,177,302
LINDNER UTILITY FUND 38,786,127 57,971,118
LINDNER SMALL-CAP FUND 23,123,072 44,484,062
LINDNER MARKET NEUTRAL FUND 6,566,157 22,351,142
- --------------------------------------------------------------------------------------------------------------
</TABLE>
25
<PAGE>
<PAGE>
- -------------------------------------------------------------------
LINDNER INVESTMENTS
- -------------------------------------------------------------------
2. Investment Transactions (continued)
For the year ended June 30, 1999, aggregate purchases and sales
of U.S. Government securities were as follows:
<TABLE>
- --------------------------------------------------------------------------------------------------------------
<CAPTION>
Purchases Sales
------------ --------------
<S> <C> <C>
LINDNER LARGE-CAP FUND $629,899,746 $ 579,809,979
LINDNER ASSET ALLOCATION FUND 594,594,860 557,365,942
LINDNER UTILITY FUND 41,811,282 38,807,470
LINDNER SMALL-CAP FUND 71,752,425 64,046,861
LINDNER MARKET NEUTRAL FUND 97,170,384 90,473,994
LINDNER GOVERNMENT MONEY
MARKET FUND 208,016,013 200,947,949
- --------------------------------------------------------------------------------------------------------------
</TABLE>
For the year ended June 30, 1999, aggregate purchases and sales
of options in the Lindner Market Neutral Fund were $0 and
$559,125, respectively.
For the year ended June 30, 1999, the cost of investments
purchased to cover short sales and the proceeds from investments
sold short in the Lindner Market Neutral Fund were $20,872,648
and $12,438,307, respectively.
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>
- ------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
Federal Tax
Appreciation (Depreciation) Net Cost
------------ -------------- ------------ ------------
<S> <C> <C> <C> <C>
LINDNER LARGE-CAP FUND $83,101,340 ($28,774,397) $ 54,326,943 $381,007,001
LINDNER ASSET ALLOCATION FUND 65,511,969 (90,002,029) (24,490,060) 790,885,870
LINDNER UTILITY FUND 5,570,118 (574,192) 4,995,926 21,157,292
LINDNER SMALL-CAP FUND 5,001,357 (263,374) 4,737,983 33,913,966
LINDNER MARKET NEUTRAL FUND 1,410,883 (3,234,926) (1,824,043) 16,557,768
- ------------------------------------------------------------------------------------------------------------------------------
</TABLE>
On June 30, 1999, Lindner Market Neutral Fund had capital loss
carryforwards which will reduce future capital gains. These loss
carryforwards, which aggregate approximately $23,332,142, expire
as follows: $1,349,000 in 2003, $7,563,000 in 2004, $1,792,000
in 2005, $9,762,000 in 2006, and $2,866,142 in 2007.
3. Fees and Other Transactions with Affiliates
The management fee for Lindner Large-Cap Fund is payable to
Lindner Asset Management, Inc. (the "Adviser"), (formerly Ryback
Management Corporation), (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 Large-Cap
Fund's performance compared to the Russell 2000 Composite Index
(the RTY), the fee may be increased or decreased by up to 0.2%.
For the year ended June 30, 1999, the Lindner Large-Cap Fund
under performed the RTY. Accordingly, the basic management fee
of $3,483,820 was reduced by a performance penalty of 0.2% of
average net assets, or $1,213,486. This resulted in a net
management fee of $2,270,334.
The management fee for Lindner Asset Allocation 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 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.
<PAGE>
The management fee for Lindner Market Neutral 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).
26
<PAGE>
<PAGE>
- -------------------------------------------------------------------
LINDNER INVESTMENTS
- -------------------------------------------------------------------
3. Fees and Other Transactions with Affiliates (continued)
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
Government Money Market 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 0.50% of average net assets during the year for
the Lindner Government Money Market Fund.
Annual operating and management expenses for the Lindner
Large-Cap Fund and Lindner Asset Allocation 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.
Lindner Asset Management, Inc., acting as stock transfer agent
and dividend disbursing agent for the Funds, is compensated at a
rate of 92 cents (83 cents for the Lindner Government Money
Market Fund) per shareholder account per month. During the year
ended June 30, 1999, the following transfer agent fees were paid
to Lindner Asset Management, Inc.: Lindner Large-Cap Fund
($287,094), Lindner Asset Allocation Fund ($432,741), Lindner
Utility Fund ($17,447), Lindner Small-Cap Fund ($24,373),
Lindner Market Neutral Fund ($14,179), and Lindner Government
Money Market Fund ($15,575). Certain officers and directors of
the Funds 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 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 1999
Expense at June 30, 1999 Expense
-------- ---------------- -------
<S> <C> <C> <C>
LINDNER UTILITY FUND $32,377 $32,377 $1,254
LINDNER SMALL-CAP FUND 29,182 29,182 2,954
LINDNER MARKET NEUTRAL FUND 62,831 62,831 7,010
LINDNER GOVERNMENT MONEY
MARKET FUND 23,865 13,445 4,650
- ----------------------------------------------------------------------------------------------------------------------
</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").
Following is an analysis of transactions for the year ended June
30, 1999, with "affiliated companies" as defined by the
Investment Company Act of 1940:
<PAGE>
<TABLE>
<CAPTION>
Security Name Activity
- -------------------------- ---------------------------------------------------------------- Gain (Loss)
Value at Purchases, Sales, Value Realized
Beginning Additions Reductions at End of Dividend on Sale
of Year at Cost at Cost Year Income of Shares
------------ ----------- ------------ ----------- ----------- ------------
<S> <C> <C> <C> <C> <C> <C>
LINDNER LARGE-CAP FUND
Alliant Techsystems, Inc. $ 52,029,450 $ 16,680,257 <F##> $ 29,955,686
Anagel - American
Shipholdings Ltd. - ADR 5,893,525 $ 432,765 7,435,403 $ 0 (4,070,594)
Comprehensive Care
Corporation -
Rule 144A 2,453,125 5,746,839 0 (4,778,118)
CPI Corporation 19,573,875 357,488 3,615,256 21,258,600 $ 436,240 1,482,565
DOR Energy - GDR -
Rule 144A <F#> 1,979,816 2,980,616 0 (1,464,602)
Frontline Ltd. - ADR
(formerly London &
Overseas Freighters
Ltd. - ADR) 3,193,313 87,188 1,865,162 <F##> (1,472,042)
Gainsco, Inc. 8,294,344 10,822,852 0 (3,366,106)
Gradco Systems, Inc. 5,238,000 2,865,353 0 (923,807)
Hilb, Rogal and Hamilton
Company 15,625,000 12,486,580 0 448,000 3,442,388
Huntway Refining Company 1,947,511 3,506,614 0 (2,279,526)
Hyseq, Inc. - Rule 144A 6,645,600 2,500,000 <F##> 0
InaCom Corporation <F#> 9,119,653 21,300,732 0 (10,190,786)
Lawter International, Inc. <F#> 3,604,863 21,118,505 0 570,440 2,311,156
Marine Transport
Corporation Inc.<F*> 907,969 0 0 441,733
27
<PAGE>
<PAGE>
<CAPTION>
- -------------------------------------------------------------------------------------------------------------------------------
LINDNER INVESTMENTS
- -------------------------------------------------------------------------------------------------------------------------------
Security Name Activity
- -------------------------- ---------------------------------------------------------------- Gain (Loss)
Value at Purchases, Sales, Value Realized
Beginning Additions Reductions at End of Dividend on Sale
of Year at Cost at Cost Year Income of Shares
------------ ----------- ------------ ----------- ----------- ------------
<S> <C> <C> <C> <C> <C> <C>
LINDNER LARGE-CAP FUND
(CONTINUED)
Novastar Financial, Inc. $ 7,367,113 $ 568,941 <F##> $ 157,465 $ (385,446)
Oak Technology, Inc. 11,232,875 $ 1,724,000 13,147,812 <F##> (4,387,273)
OMI, Inc. 17,880,000 423,004 7,052,477 <F##> (4,683,262)
Quixote Corporation 8,734,250 252,563 7,718,906 <F##> 114,240 494,232
Ramco-Gershenson
Properties Trust 8,776,100 7,226,072 $ 0 81,942 634,896
Recycling Industries, Inc. 6,462,500 403,470 3,611,654 0 (2,996,532)
Republic Engineered
Steels, Inc. 4,907,625 6,831,488 0 483,888
SED International
Holdings, Inc. 8,125,000 12,023,040 0 (7,320,637)
Seim Industries, Inc. 21,837,800 377,163 0 9,458,881
Scientific
Software-Intercomp, Inc. 338,520 1,837,750 0 (1,455,830)
Southernera Resources Ltd. 5,615,031 6,385,887 <F##> (3,214,515)
Superior Uniform Group
(formerly Superior
Surgical Mfg. Company,
Inc.) 8,076,250 824,768 2,418,350 <F##> 280,258 109,625
TransTechnology
Corporation 8,117,250 1,164,891 1,817,176 <F##> 86,041 (213,218)
Uranium Resources, Inc. 1,844,769 5,890,060 0 (5,746,046)
Vertex Communications
Corporation 10,528,000 189,739 1,970,164 4,553,831 81,967
Westmoreland Coal Company,
8.50% Voting
Convertible Preferred 1,111,422 1,467,234 0 2,702,375
Wolohan Lumber Company 6,913,981 26,538 6,949,625 0 37,051 (274,704)
------------ ----------- ------------ ----------- ----------- ------------
$259,670,198 $20,590,746 $200,217,968 $25,812,431 $ 2,211,677 $ (7,623,652)
============ =========== ============ =========== =========== ============
LINDNER ASSET ALLOCATION
FUND
American Bank of
Connecticut $ 6,665,350 $ 2,250,363 $ 0 $ 37,940 $ 2,802,969
El Paso Electric Company 34,000,181 18,399,438 0 11,891,674
Hanover Capital Mortgage
Holdings, Inc. 4,462,150 6,252,700 0 131,516 (4,318,109)
Harken Energy Corporation 33,783,750 6,160,132 <F##> (3,861,511)
IMH Commercial Holdings,
Inc. <F#> $ 390,478 2,721,950 123,915
Novastar Financial, Inc.
Common stock 1,637,500 1,800,000 0 35,000 (1,211,893)
Common stock - Rule
144A<F**> 10,916,670 4,250,002 266,667
Redwood Trust, Inc. 14,050,000 20,902,162 0 8,000 (8,918,562)
Uranium Resources, Inc.
Common stock 730,988 2,131,138 0 (2,088,765)
Common stock - Rule 144A 1,078,150 2,000,000 0 (1,945,000)
------------ ----------- ------------ ----------- ----------- ------------
$107,324,739 $ 390,478 $ 59,895,933 $ 6,971,952 $ 603,038 $ (7,649,197)
============ =========== ============ =========== =========== ============
LINDNER MARKET NEUTRAL
FUND
Scientific Software
Intercomp, Inc. $ 336,180 $ 1,204,873 $ 0 $ (825,593)
Westmoreland Coal Company
8.50% Voting
Convertible Preferred 581,588 928,141 0 1,139,314
------------ ----------- ------------ ----------- ----------- ------------
$ 917,768 $ 0 $ 2,133,014 $ 0 $ 0 $ 313,721
============ =========== ============ =========== =========== ============
LINDNER SMALL-CAP FUND
Castle Energy
Corporation<F^> <F#> $ 0 $ 1,501,875 <F##> $ 79,500 $ 297,315
============ =========== ============ =========== =========== ============
<FN>
<F#> -At June 30, 1998, was not affiliated.
<F^> -Affiliated due to decreased number of shares outstanding as a result of
stock buy back program conducted by the company.
<F##> -At June 30, 1999, was not affiliated.
<F*> -Received in a spin-off at no cost.
<F**> -Received from conversion of preferred at no additional cost.
</TABLE>
28
<PAGE>
<PAGE>
- -------------------------------------------------------------------
LINDNER INVESTMENTS
- -------------------------------------------------------------------
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 year ended June 30, 1999, by which
expenses have been increased for financial statement
presentation:
<TABLE>
-----------------------------------------------------------------------
<S> <C>
LINDNER LARGE-CAP FUND $19,393
LINDNER ASSET ALLOCATION FUND 39,481
LINDNER UTILITY FUND 1,038
LINDNER SMALL-CAP FUND 1,444
LINDNER MARKET NEUTRAL FUND 692
LINDNER GOVERNMENT MONEY MARKET FUND 1,786
-----------------------------------------------------------------------
</TABLE>
7. Capital Stock
The Lindner Large-Cap, Lindner Asset Allocation, Lindner
Utility, Lindner Small-Cap, and Lindner Market Neutral 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, 1999 and 1998 were as follows:
<TABLE>
<CAPTION>
Year Ended June 30, 1999 Year Ended June 30, 1998
-------------------------------- --------------------------------
Shares Amount Shares Amount
------------ ------------- ------------ -------------
<S> <C> <C> <C> <C>
LINDNER LARGE-CAP FUND
Investor shares
---------------
Sold 5,707,136 $ 100,598,943 5,426,366 $ 136,110,587
Dividends and Distributions reinvested 6,326,904 102,881,809 8,184,099 183,241,854
Redeemed (30,216,463) (519,199,494) (26,109,623) (638,800,804)
------------ ------------- ------------ -------------
Net decrease (18,182,423) $(315,718,742) (12,499,158) $(319,448,363)
============ ============= ============ =============
Institutional shares
--------------------
Sold 5,379 $ 87,271 39,941 $ 1,042,902
Dividends and Distributions reinvested 3,097 50,118 6,416 143,404
Redeemed (13,556) (218,328) (33,650) (766,031)
------------ ------------- ------------ -------------
Net (decrease) increase (5,080) $ (80,939) 12,707 $ 420,275
============ ============= ============ =============
LINDNER ASSET ALLOCATION FUND
Investor shares
---------------
Sold 5,423,531 $ 135,308,721 6,426,515 $ 180,290,348
Dividends and Distributions reinvested 3,806,572 90,022,541 8,028,267 215,661,998
Redeemed (35,145,518) (844,873,352) (28,055,378) (788,627,137)
------------ ------------- ------------ -------------
Net decrease (25,915,415) $(619,542,090) (13,600,596) $(392,674,791)
============ ============= ============ =============
Institutional shares
--------------------
Sold 210,079 $ 4,979,117 27,452 $ 769,200
Dividends and Distributions reinvested 9,629 220,547 13,153 353,051
Redeemed (143,648) (3,542,616) (11,740) (325,699)
------------ ------------- ------------ -------------
Net increase 76,060 $ 1,657,048 28,865 $ 796,552
============ ============= ============ =============
29
<PAGE>
<PAGE>
<CAPTION>
- -------------------------------------------------------------------------------------------------------------------------------
LINDNER INVESTMENTS
- -------------------------------------------------------------------------------------------------------------------------------
Year Ended June 30, 1999 Year Ended June 30, 1998
-------------------------------- --------------------------------
Shares Amount Shares Amount
------------ ------------- ------------ -------------
<S> <C> <C> <C> <C>
LINDNER UTILITY FUND
Investor shares
---------------
Sold 1,135,336 $ 16,498,124 704,960 $ 11,459,416
Dividends and Distributions reinvested 462,162 5,621,351 202,703 3,159,583
Redeemed (2,375,409) (32,751,323) (1,317,416) (21,311,876)
------------ ------------- ------------ -------------
Net decrease (777,911) $ (10,631,848) (409,753) $ (6,692,877)
============ ============= ============ =============
Institutional shares
--------------------
Sold 0 $ 0 457 $ 7,561
Dividends and Distributions reinvested 2 20 52 389
Redeemed (493) (6,672) (3,423) (55,913)
------------ ------------- ------------ -------------
Net decrease (491) $ (6,652) (2,914) $ (47,963)
============ ============= ============ =============
LINDNER SMALL-CAP FUND
Investor shares
---------------
Sold 2,905,813 $ 22,309,033 5,816,203 $ 50,042,896
Dividends and Distributions reinvested 299,365 2,173,049 194,743 1,600,791
Redeemed (4,877,919) (36,072,733) (2,867,441) (24,851,564)
------------ ------------- ------------ -------------
Net (decrease) increase (1,672,741) $ (11,590,651) 3,143,505 $ 26,792,123
============ ============= ============ =============
Institutional shares
--------------------
Sold 195,712 $ 1,375,641 34,120 $ 280,579
Dividends and Distributions reinvested 1,053 7,643 1,094 8,973
Redeemed (11,937) (88,364) (17,136) (150,245)
------------ ------------- ------------ -------------
Net increase 184,828 $ 1,294,920 18,078 $ 139,307
============ ============= ============ =============
LINDNER MARKET NEUTRAL FUND
Investor shares
---------------
Sold 1,985,070 $ 11,564,233 5,372,688 $ 34,105,013
Dividends and Distributions reinvested 121,616 693,210 433,245 2,517,155
Redeemed (3,927,364) (22,671,652) (11,028,984) (68,396,769)
------------ ------------- ------------ -------------
Net decrease (1,820,678) $ (10,414,209) (5,223,051) $ (31,774,601)
============ ============= ============ =============
Institutional shares
--------------------
Sold -- $ -- 19,355 $ 120,000
Dividends and Distributions reinvested -- 2 -- --
Redeemed -- -- (254,614) (1,588,360)
------------ ------------- ------------ -------------
Net increase (decrease) -- $ 2 (235,259) $ (1,468,360)
============ ============= ============ =============
LINDNER GOVERNMENT MONEY MARKET FUND
Investor shares
---------------
Sold 120,306,779 $ 120,306,779 234,509,504 $ 234,509,504
Dividends and Distributions reinvested 1,557,680 1,557,680 1,283,867 1,283,867
Redeemed (120,823,806) (120,823,806) (232,047,082) (232,047,082)
------------ ------------- ------------ -------------
Net increase 1,040,653 $ 1,040,653 3,746,289 $ 3,746,289
============ ============= ============ =============
</TABLE>
8. Distributions to Shareholders
On June 25, 1999, distributions to shareholders were recorded
for Lindner Asset Allocation Fund and Lindner Utility Fund.
Lindner Asset Allocation Fund declared a $0.45 income dividend
for its Investor shares ($0.45 for its Institutional shares) and
Lindner Utility Fund declared a $0.05 income dividend for its
Investor shares ($0.05 for its Institutional shares).
30
<PAGE>
<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 LARGE-CAP FUND <F1>
---------------------------
Period Ended June 30,
<S> <C> <C> <C> <C> <C> <C> <C>
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
1999 $22.27 $0.29 ($3.36) ($3.07) $0.32 $2.74 $3.06
<CAPTION>
LINDNER ASSET ALLOCATION FUND <F2>
----------------------------------
Period Ended February 28,
<S> <C> <C> <C> <C> <C> <C> <C>
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
1999 $27.59 $2.16 ($3.80) ($1.64) $1.95 $0.50 $2.45
<CAPTION>
LINDNER UTILITY FUND
--------------------
Period Ended June 30,
<S> <C> <C> <C> <C> <C> <C> <C>
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
1999 $16.78 $0.33 $0.44 $0.77 $0.33 $2.41 $2.74
<CAPTION>
LINDNER SMALL-CAP FUND
----------------------
Period Ended June 30,
<S> <C> <C> <C> <C> <C> <C> <C>
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
1999 $8.49 $0.08 ($0.12) ($0.04) $0.08 $0.31 $0.39
<PAGE>
<CAPTION>
RATIOS/SUPPLEMENTAL DATA
------------------------------------------------------
Ratio of
Net Net
Net Asset Ratio of Investment Assets,
Value, Expenses Income to Portfolio End of
End of Total to Average Average Turnover Period
Period Return <F4> Net Assets Net Assets Rate (In Millions)
--------- ----------- ---------- ---------- --------- -------------
<CAPTION>
LINDNER LARGE-CAP FUND <F1>
---------------------------
Period Ended June 30,
<S> <C> <C> <C> <C> <C> <C>
1995 $23.33 14.89% 0.54% 1.89% 24.94% $1,446
1996 $26.39 21.95% 0.63% <F5> 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
1999 $16.14 (13.66%) 0.57% 1.27% 53.41% $434
<CAPTION>
LINDNER ASSET ALLOCATION FUND <F2>
----------------------------------
Period Ended February 28,
<S> <C> <C> <C> <C> <C> <C>
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% <F5> 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
1999 $23.50 (5.57%) 0.66% 8.03% 31.74% $768
<CAPTION>
LINDNER UTILITY FUND
---------------------
Period Ended June 30,
<S> <C> <C> <C> <C> <C> <C>
1995 $10.77 12.51% 1.04% 3.02% 190.70% $18
1996 $14.20 35.39% 0.95% <F5> 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
1999 $14.81 8.62% 0.97% 2.40% 137.51% $26
<CAPTION>
LINDNER SMALL-CAP FUND
----------------------
Period Ended June 30,
<S> <C> <C> <C> <C> <C> <C>
1995 $5.46 14.32% 1.65% (0.57%) 158.62% $8
1996 $6.15 25.70% 1.22% <F5> (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
1999 $8.06 0.11% 0.94% 0.99% 65.98% $38
31
<PAGE>
<PAGE>
<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 MARKET NEUTRAL FUND <F1>
--------------------------------
Period Ended June 30,
<S> <C> <C> <C> <C> <C> <C> <C>
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
1999 $5.65 $0.23 $0.01 $0.24 $0.17 $0.00 $0.17
<CAPTION>
LINDNER GOVERNMENT MONEY MARKET FUND <F3>
-----------------------------------------
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
1999 $1.00 $0.05 $0.00 $0.05 $0.05 $0.00 $0.05
<PAGE>
<CAPTION>
RATIOS/SUPPLEMENTAL DATA
------------------------------------------------------
Ratio of
Net Net
Net Asset Ratio of Investment Assets,
Value, Expenses Income to Portfolio End of
End of Total to Average Average Turnover Period
Period Return <F4> Net Assets Net Assets Rate (In Millions)
--------- ----------- ---------- ---------- --------- -------------
<CAPTION>
LINDNER MARKET NEUTRAL FUND
---------------------------
Period Ended June 30,
<S> <C> <C> <C> <C> <C> <C>
1995 $7.09 0.10% 1.27% 2.45% 122.64% $65
1996 $8.36 23.44% 1.24% <F5> 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
1999 $5.72 4.29% 1.45% 3.46% 104.92% $18
<CAPTION>
LINDNER GOVERNMENT MONEY MARKET FUND <F3>
-----------------------------------------
Period Ended June 30,
<S> <C> <C> <C> <C> <C> <C>
1997 $1.00 5.02% 0.43% 5.45% -- $39
1998 $1.00 5.21% 0.50% 5.08% -- $43
1999 $1.00 4.70% 0.50% 4.53% -- $44
<FN>
<F1> Historical performance information is for Lindner Fund, Inc. ("LFI"), the
predecessor of the Lindner Large-Cap Fund series of the Trust. The
Lindner Large-Cap Fund series of the Trust succeeded to all of the assets
and liabilities of LFI 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 Asset Allocation Fund series of
the Trust. The Lindner Asset Allocation 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 July 6, 1996.
<F4> 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.
<F5> Expense ratio for periods after September 1, 1995, are computed using
gross expenses which include fees reduced in connection with specific
agreements.
</TABLE>
32
<PAGE>
<PAGE>
<TABLE>
(FOR AN INSTITUTIONAL 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 LARGE-CAP FUND
----------------------
Period Ended June 30,
<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 ($0.30) $0.05 $0.31 $3.48 $3.79
1999 $22.20 $0.28 ($3.41) ($3.13) $0.31 $2.74 $3.05
<CAPTION>
LINDNER ASSET ALLOCATION FUND
-----------------------------
Period Ended June 30,
<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
1999 $27.53 $2.15 ($3.83) ($1.68) $1.94 $0.50 $2.44
<CAPTION>
LINDNER UTILITY FUND
--------------------
Period Ended June 30,
<S> <C> <C> <C> <C> <C> <C> <C>
1997 <F3> $14.20 $0.27 $1.60 $1.87 $0.31 $0.02 $0.33
1998 $15.74 $0.26 $2.03 $2.29 $0.26 $0.93 $1.19
1999 $16.84 $0.19 $0.53 $0.72 $0.19 $2.41 $2.60
<CAPTION>
LINDNER SMALL-CAP FUND
----------------------
Period Ended June 30,
<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
1999 $8.48 $0.08 ($0.13) ($0.05) $0.08 $0.31 $0.39
<CAPTION>
LINDNER MARKET NEUTRAL FUND
---------------------------
Period Ended June 30,
<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
1999 $6.02 $0.23 $0.01 $0.24 $0.17 $0.00 $0.17
<PAGE>
<CAPTION>
RATIOS/SUPPLEMENTAL DATA
-------------------------------------------------
Ratio of
Net Net
Net Asset Ratio of Investment Assets,
Value, Expenses Income to Portfolio End of
End of Total to Average Average Turnover Period (In
Period Return <F6> Net Assets Net Assets Rate Thousands)
--------- ----------- ---------- ---------- --------- ----------
LINDNER LARGE-CAP FUND
----------------------
Period Ended June 30,
<S> <C> <C> <C> <C> <C> <C>
1997 <F1> $25.94 15.36% 0.46% 1.29% 36.39% <F7> $102
1998 $22.20 0.08% 0.75% 1.05% 44.43% $369
1999 $16.02 (14.01%) 0.85% 1.13% 53.41% $185
<CAPTION>
LINDNER ASSET ALLOCATION FUND
-----------------------------
Period Ended June 30,
<S> <C> <C> <C> <C> <C> <C>
1997 <F2> $27.90 9.84% 0.85% 5.69% 40.32% <F7> $2,010
1998 $27.53 14.49% 0.88% 6.14% 28.56% $2,777
1999 $23.41 (5.74%) 0.90% 7.64% 31.74% $4,143
<CAPTION>
LINDNER UTILITY FUND
--------------------
Period Ended June 30,
<S> <C> <C> <C> <C> <C> <C>
1997 <F3> $15.74 14.52% 0.75% 2.42% 86.44% <F7> $54
1998 $16.84 15.23% 1.22% 1.99% 99.37% $9
1999 $14.96 7.99% 1.30% 2.70% 137.51% $0.2
<CAPTION>
LINDNER SMALL-CAP FUND
----------------------
Period Ended June 30,
<S> <C> <C> <C> <C> <C> <C>
1997 <F4> $7.67 21.21% 0.59% 0.26% 49.49% <F7> $0.2
1998 $8.48 15.02% 1.31% 0.99% 24.52% $154
1999 $8.04 (0.07%) 1.16% 1.44% 65.98% $1,631
<CAPTION>
LINDNER MARKET NEUTRAL FUND
---------------------------
Period Ended June 30,
<S> <C> <C> <C> <C> <C> <C>
1997 <F5> $6.67 (18.61%) 1.37% 4.45% 457.57% <F7> $1.6
1998 $6.02 (9.75%) 1.86% 16.68% 109.32% $0.1
1999 $6.09 4.02% 0.96% 3.13% 104.92% $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> 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.
<F7> Annualized.
</TABLE>>
33
<PAGE>
<PAGE>
INDEPENDENT AUDITORS' REPORT
Lindner Large-Cap Fund
Lindner Asset Allocation Fund
Lindner Utility Fund
Lindner Small-Cap Fund
Lindner Market Neutral Fund, and
Lindner Government Money Market Fund
To the Trustees and Shareholders of Lindner Investments:
We have audited the accompanying statements of assets and
liabilities of the Lindner Large-Cap Fund (formerly the Lindner
Growth Fund), the Lindner Asset Allocation Fund (formerly the
Lindner Dividend Fund), the Lindner Utility Fund, the Lindner
Small-Cap Fund (formerly the Lindner/Ryback Small-Cap Fund), the
Lindner Market Neutral Fund (formerly the Lindner Bulwark Fund), and
the Lindner Government Money Market Fund (six of the portfolios of
Lindner Investments), including the schedules of investments, as of
June 30, 1999, and the related statements of operations for the year
then ended, the statement of changes in net assets for the years
ended June 30, 1999 and 1998, and the financial highlights for each
of the periods in the five year period ended June 30, 1999. 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, 1999, 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
referred to above present fairly, in all material respects, the
financial positions of the Funds at June 30, 1999, and the results
of their operations for the year then ended, the changes in their
net assets for each of the two years in the year then ended, and the
financial highlights for each of the periods in the five year period
then ended in conformity with generally accepted accounting
principles.
DELOITTE & TOUCHE LLP
St. Louis, Missouri
August 11, 1999
34
<PAGE>
<PAGE>
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LINDNER INVESTMENTS
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Shareholder Vote Information
Special meetings of shareholders were held on December 17 and
22, 1998, to vote on several matters:
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.
(b) Eliminate the fundamental restriction prohibiting each
Fund from investing to exercise control.
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.
(b) Restriction on short sales.
(c) Restriction on writing or selling put and call options.
3. Approve changes to the investment objective, concentration
policy, sub-classification and certain fundamental investment
policies of Lindner Market Neutral Fund (formerly the Lindner
Bulwark Fund in order to permit it to be managed as a "market
neutral" equity fund.
(a) Permit the Fund to be managed as a "market neutral" equity
fund.
(b) Provide that the Fund may not invest more than 25% of its
total assets in securities of issuers within any one
industry.
(c) Permit the Fund to maintain a short position or engage in
short sales without limitations and to provide that this
policy is an operating policy and not a fundamental
policy.
(d) Change the sub-classification of the Fund under the 1940
Act to that of a diversified mutual fund (if proposals
3(a), 3(b), 3(c) and 3(d) are all approved, the Fund's
name will change to Lindner Market Neutral Fund).
4. Approval of an amendment to the Agency Agreement between
Lindner Asset Management, Inc. (formerly Ryback Management
Corporation) and the Trust for all Funds to increase the
annual fee payable by such Funds for transfer agent services
from $9.00 per shareholder account to $11.00 per shareholder
account.
5. Approval of an amendment to the Advisory and Service Contract
between the Trust and Lindner Asset Management Inc. (formerly
Ryback Management Corporation) relating to the Lindner
Large-Cap Fund (formerly the Lindner Growth Fund) to change
the index for judging the performance of Lindner Asset
Managment, Inc. from the Standard & Poor's 500 Composite
Stock Index to the Russell 2000 Index.
Shareholders adopted all proposals. The voting on each proposal
was as follows:
<TABLE>
- -------------------------------------------------------------------------------------------------------------------
<CAPTION>
Proposal 1(a) For Against Abstain
------------- ---------- --------- ---------
<S> <C> <C> <C>
ASSET ALLOCATION FUND 20,904,418 4,772,410 1,587,930
GROWTH FUND 14,409,773 3,496,846 1,056,584
UTILITY FUND 919,501 154,550 59,767
SMALL-CAP FUND 2,455,134 386,036 147,139
MARKET NEUTRAL FUND 1,940,941 338,604 59,904
- -------------------------------------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------------------------------------------
<CAPTION>
Proposal 1(b) For Against Abstain
------------- ---------- --------- ---------
<S> <C> <C> <C>
ASSET ALLOCATION FUND 21,698,067 3,966,983 1,599,707
GROWTH FUND 15,007,401 2,882,599 1,073,203
UTILITY FUND 941,597 135,252 56,968
SMALL-CAP FUND 2,553,639 281,382 153,288
MARKET NEUTRAL FUND 2,022,452 260,438 56,559
- -------------------------------------------------------------------------------------------------------------------
<PAGE>
- -------------------------------------------------------------------------------------------------------------------
<CAPTION>
Proposal 2(a) For Against Abstain
------------- ---------- --------- ---------
<S> <C> <C> <C>
DIVIDEND FUND 20,197,810 5,459,483 1,607,464
LARGE-CAP FUND 13,836,259 4,101,372 1,025,571
UTILITY FUND 889,866 186,656 57,294
SMALL-CAP FUND 2,113,922 866,817 169,067
MARKET NEUTRAL FUND 1,934,251 342,349 62,849
- -------------------------------------------------------------------------------------------------------------------
35
<PAGE>
<PAGE>
<CAPTION>
- -------------------------------------------------------------------------------------------------------------------
LINDNER INVESTMENTS
- -------------------------------------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------------------------------------------
Proposal 2(b) For Against Abstain
------------- ---------- --------- ---------
<S> <C> <C> <C>
ASSET ALLOCATION FUND 20,406,310 5,205,100 1,653,347
LARGE-CAP FUND 13,984,593 3,893,660 1,084,949
UTILITY FUND 890,053 165,436 78,328
SMALL-CAP FUND 2,030,583 795,763 161,963
MARKET NEUTRAL FUND 2,033,266 239,733 66,350
- -------------------------------------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------------------------------------------
<CAPTION>
Proposal 2(c) For Against Abstain
------------- ---------- --------- ---------
<S> <C> <C> <C>
ASSET ALLOCATION FUND 20,499,803 5,073,075 1,691,879
LARGE-CAP FUND 14,114,881 3,776,242 1,072,080
UTILITY FUND 902,159 170,676 60,892
SMALL-CAP FUND 2,026,002 820,256 142,050
- -------------------------------------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------------------------------------------
<CAPTION>
Proposal 3(a)-(d) For Against Abstain
----------------- ---------- --------- ---------
<S> <C> <C> <C>
MARKET NEUTRAL FUND 2,094,149 189,705 55,594
- -------------------------------------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------------------------------------------
<CAPTION>
Proposal 4 For Against Abstain
---------- ---------- --------- ---------
<S> <C> <C> <C>
ASSET ALLOCATION FUND 19,228,231 6,290,989 1,745,538
LARGE-CAP FUND 12,903,273 4,916,298 1,143,631
UTILITY FUND 846,778 223,806 63,233
SMALL-CAP FUND 2,290,560 540,300 157,449
MARKET NEUTRAL FUND 1,795,384 461,148 82,916
- -------------------------------------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------------------------------------------
<CAPTION>
Proposal 5 For Against Abstain
---------- ---------- --------- ---------
<S> <C> <C> <C>
LARGE-CAP FUND 14,214,562 3,559,719 1,188,921
- -------------------------------------------------------------------------------------------------------------------
</TABLE>
36
