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Lindner Logo
As with all mutual funds, the Securities and Exchange Commission has
not approved or disapproved the Funds' shares nor has the Securities
and Exchange Commission passed upon the adequacy of this Prospectus.
Any representation to the contrary is a criminal offense.
LINDNER INVESTMENTS
Investor and Institutional Shares of
LINDNER ASSET ALLOCATION FUND
formerly Lindner Dividend Fund
LINDNER LARGE-CAP FUND
formerly Lindner Growth Fund
LINDNER SMALL-CAP FUND
formerly Lindner/Ryback Small-Cap Fund
LINDNER UTILITY FUND
LINDNER MARKET NEUTRAL FUND
formerly Lindner Bulwark Fund
and
Investor Shares of
LINDNER GOVERNMENT MONEY
MARKET FUND
PROSPECTUS
DATED
JULY 1, 1999
<PAGE>
<TABLE>
CONTENTS
<S> <C>
INVESTMENT OBJECTIVES, RISKS AND PERFORMANCE 3
RISK FACTORS 4
PERFORMANCE SUMMARY 8
FUND EXPENSES 10
FINANCIAL HIGHLIGHTS 12
THE FUNDS IN DETAIL 17
ASSET ALLOCATION FUND 18
LARGE-CAP FUND 20
SMALL-CAP FUND 22
UTILITY FUND 24
MARKET NEUTRAL FUND 26
GOVERNMENT MONEY MARKET FUND 28
MORE ABOUT RISK 29
CERTAIN INVESTMENT PRACTICES 32
MANAGEMENT OF THE TRUST 34
PRICING OF SHARES FOR PURCHASE OR REDEMPTION 35
PURCHASE OF SHARES AND SHAREHOLDER INQUIRIES 35
REDEMPTION OF SHARES 40
EXCHANGING AN INVESTMENT FROM ONE FUND TO ANOTHER 43
SYSTEMATIC WITHDRAWAL PLAN 44
INDIVIDUAL RETIREMENT ACCOUNTS 45
DIVIDENDS, DISTRIBUTIONS AND TAXES 45
DISTRIBUTION AND SERVICE PLAN 47
</TABLE>
LINDNER FUNDS 2
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INVESTMENT OBJECTIVES, RISKS AND PERFORMANCE
LINDNER ASSET ALLOCATION FUND
The Asset Allocation Fund seeks to produce current income through
investments in common stocks, convertible and non-convertible
preferred stocks, corporate bonds and debt securities issued or
guaranteed by the U.S. government that provide a yield higher than
that paid on either the Standard & Poor's 500 Stock Index or on
passbook savings accounts. Capital appreciation is a secondary
investment objective. The Asset Allocation Fund may invest in any
type or class of security without regard to market capitalization
size.
* Under normal circumstances, invests between 45% and 60% of total
assets in common stocks and securities convertible into common
stocks, between 25% and 50% of total assets in fixed income
securities and up to 30% of total assets in cash equivalent
securities.
* May invest a portion of its assets in securities issued by real
estate investment trusts ("REITs"), securities sold in unregistered
private placements to qualified institutional buyers ("Rule 144A
Securities") and debt securities that are rated below investment
grade or are unrated ("junk bonds").
* Principal risks include market risk, valuation risk, liquidity
risk, Year 2000 processing risk, credit risk and interest rate risk.
See "Risk Factors."
LINDNER LARGE-CAP FUND
The Large-Cap Fund seeks long-term capital appreciation through
investments in common stocks or securities convertible into common
stock. The production of current income is a secondary investment
objective.
* Under normal circumstances, invests at least 65% of total assets
in common stocks and equity securities of U.S. companies that have
market capitalizations in the range of the Russell 1000 Index
(between $1.45 billion and $456 billion at March 31, 1999).
* May invest using either value or growth strategies in companies
that are diversified across industry sectors, but may emphasize
certain sectors that are believed to offer superior potential for
growth of capital at the time of investment.
* May borrow money for investment purposes.
* May invest a portion of its assets in securities issued by foreign
companies, securities issued by REITs and Rule 144A Securities.
* Principal risks include market risk, valuation risk, liquidity
risk, foreign risk, leverage risk and Year 2000 processing risk. See
"Risk Factors."
LINDNER SMALL-CAP FUND
The Small-Cap Fund seeks capital appreciation. The production of
current income is a secondary investment objective.
* Under normal circumstances, invests at least 65% of total assets
in common stocks and equity securities of U.S. companies that have
market capitalizations in the range of the Russell 2000 Index
(between $216 million and $1.44 billion at March 31, 1999).
* May invest using either value or growth strategies in companies
that are diversified across industry sectors, but may emphasize
certain sectors that are believed to offer superior potential for
growth of capital at the time of investment.
* May invest a portion of its assets in securities issued by foreign
companies, securities issued by REITs and Rule 144A Securities.
LINDNER FUNDS 3
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* Principal risks include market risk, valuation risk, liquidity
risk, foreign risk, Year 2000 processing risk and small cap stock
risk. See "Risk Factors."
LINDNER UTILITY FUND
The Utility Fund seeks to produce current income through investments
in securities of domestic and foreign public utility companies.
Capital appreciation is a secondary investment objective.
* Under normal circumstances, invests at least 65% of total assets
in common and preferred stocks (both convertible and
non-convertible) and bonds of domestic and foreign public utilities,
including gas, electric, telecommunications, cable television, water
and energy utilities and related businesses.
* May invest in Rule 144A Securities and junk bonds.
* Principal risks include market risk, valuation risk, liquidity
risk, Year 2000 processing risk, credit risk, sector concentration
and foreign risk. See "Risk Factors."
LINDNER MARKET NEUTRAL FUND
The Market Neutral Fund seeks long term capital appreciation in both
bull and bear markets while maintaining minimal portfolio exposure
to general equity market risk by always having both long and short
positions in equity securities.
* Invests in long positions of common stocks and securities
convertible into common stocks issued by U.S. companies without
regard to quality or rating that the Adviser believes are
undervalued.
* Invests in short positions in common stocks and securities
convertible into common stocks issued by U.S. companies that the
Adviser believes are overvalued.
* May invest in Rule 144A Securities.
* Principal risks include market risk, valuation risk, Year 2000
processing risk, short selling risk, leverage risk and interest rate
risk. See "Risk Factors."
LINDNER GOVERNMENT MONEY MARKET FUND
The Government Money Market Fund seeks to produce current income
consistent with preservation of capital and liquidity.
* Invests exclusively in U.S. dollar denominated obligations issued
or guaranteed by the United States Government, its agencies and
instrumentalities and in repurchase agreements secured by such
securities.
* Principal risks include market risk, interest rate risk and Year
2000 processing risk. See "Risk Factors."
RISK FACTORS
All investments involve some level of risk. Simply stated, risk is
the possibility that you will lose money or not make money. The
principal risk factors for the Funds are described below. Other
risks may also apply. See "More About Risk" on page 29. Before you
invest, you should be aware of the principal risks that apply to
your Fund. As with any mutual fund, you could lose money over any
period of time. Investments in the Funds are not bank deposits and
are not insured or guaranteed by the Federal Deposit Insurance
Corporation or any other government agency. Although the Government
Money Market Fund seeks to preserve the value of your investment at
$1.00 per share, it is possible to lose money by investing in the
Government Money Market Fund.
LINDNER FUNDS 4
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MARKET RISK (ALL FUNDS)
The market value of a security may move up or down, sometimes
rapidly and unpredictably. These fluctuations, often referred to as
"volatility", may cause the price of a security to drop below
previous levels. Market risk may affect a single issuer, industry,
sector of the economy or the market as a whole. Market risk is
common to most investments, including stocks and bonds, and to the
mutual funds that invest in them. Bonds and other fixed income
securities generally involve less market risk than stocks. However,
the risks of investing in bonds can vary significantly depending
upon factors such as issuer and maturity. The bonds of some
companies may be riskier than the stocks of others.
VALUATION RISK (ALL FUNDS EXCEPT GOVERNMENT MONEY MARKET FUND)
This is the risk that the Adviser has valued certain securities at a
higher or lower price than the Fund can sell them.
LIQUIDITY RISK (ASSET ALLOCATION FUND, LARGE-CAP FUND, SMALL-CAP
FUND, UTILITY FUND)
Certain securities may be difficult or impossible to sell at the
time and price that a Fund would like. A Fund may have to accept a
lower price, sell other securities or forego an investment
opportunity, and this could have a negative effect on performance.
This risk applies to restricted securities, Rule 144A Securities,
certain over-the-counter options, securities not traded in the U.S.
markets and other securities that may trade in U.S. markets but are
not registered under the federal securities laws. Each Fund may
invest up to 15% of its net assets in illiquid securities except
that the Government Money Market Fund may invest only up to 10% of
its net assets in illiquid securities. Because illiquid and
restricted securities may be difficult to sell at an acceptable
price, they may be subject to greater volatility and may result in a
loss to a Fund.
YEAR 2000 PROCESSING RISK (ALL FUNDS)
Like other investment companies and financial service providers,
each Fund could be adversely affected if the computer systems used
by the Adviser (and the Subadviser in the case of the Government
Money Market Fund) and the Funds' other service providers do not
properly process and calculate date-related information and data
beginning on January 1, 2000. This possibility is commonly known as
the "Year 2000 Problem". The Year 2000 Problem arises because most
computer systems were designed only to recognize a two-digit year,
not a four-digit year. When the year 2000 begins, these computers
may interpret "00" as the year 1900 and either stop processing
date-related computations or process them incorrectly. These
failures could have a negative impact on the handling of securities
trades, pricing and account services. The Adviser is taking steps to
address the Year 2000 Problem with respect to the computer systems
that it uses. The Adviser is also working to determine the Year 2000
readiness of those entities which provide services to the Funds. As
of the date of this Prospectus, it is not anticipated that
shareholders will experience negative effects on their investment,
or on the services provided in connection therewith, as a result of
the Year 2000 Problem relating to the investment adviser or the
Funds' other major service providers. However, there can be no
assurance that the steps taken by these service providers will be
successful, or that interaction with other non-complying computer
systems will not adversely impact the Funds. Also, companies in
which the Funds invest could be adversely affected by the Year 2000
Problem. Also, it is possible that the normal operations of the Fund
will in any event, be disrupted significantly by
LINDNER FUNDS 5
<PAGE>
the failure of communications and public utility companies,
governmental entities, financial processors or others as a result of
the Year 2000 Problem.
CREDIT RISK (ASSET ALLOCATION FUND, UTILITY FUND)
Each Fund, to the extent that it invests in fixed income securities,
is subject to the risk that an issuer of those securities may
default on its obligation to pay interest and repay principal. Also,
changes in the financial strength of an issuer or changes in the
credit rating of a security may affect its value. Credit risk
includes "counterparty risk,"--the risk that the other party to a
transaction will not fulfill its contractual obligation. This risk
applies, for example, to repurchase agreements into which a Fund may
enter. Securities rated below investment grade are particularly
subject to credit risk. These securities are predominantly
speculative and are commonly referred to as "junk bonds". To the
extent a Fund purchases or holds convertible or other securities
that are rated below investment grade, a greater risk exists as to
the timely repayment of the principal of, and the timely payment of
interest or dividends on, such securities.
INTEREST RATE RISK (ASSET ALLOCATION FUND, MARKET NEUTRAL FUND,
GOVERNMENT MONEY MARKET FUND)
Changes in interest rates may cause a decline in the market value of
an investment. With bonds and other fixed income securities, a rise
in interest rates typically causes a fall in bond values, while a
fall in interest rates typically causes a rise in bond values. Fixed
income securities with longer maturities are more susceptible to
changes in value due to interest rate changes than are those with
shorter maturities.
SECTOR CONCENTRATION (UTILITY FUND)
A fund that invests more than 25% of its net assets in a group of
related industries (an industry sector) is subject to increased risk
because of this concentration. The fund's performance will generally
depend on the sector's performance, which may differ in direction
and degree from that of the overall stock market. In addition,
financial, economic, business and political developments affecting
the industry sector may have a greater effect on the fund.
FOREIGN RISK (LARGE-CAP FUND, SMALL-CAP FUND, UTILITY FUND)
When a Fund invests in foreign securities, it will be subject to
special risks not typically associated with domestic companies
resulting from less government regulation, less public information
and less economic, political and social stability. Foreign
securities, and in particular foreign debt securities, are sensitive
to changes in interest rates. In addition, investment in the
securities of foreign governments involves the risk that foreign
governments may default on their obligations or may otherwise not
respect the integrity of their debt. A Fund which invests in foreign
securities will also be subject to the diplomatic risk that an
adverse change in the diplomatic relations between the U.S. and
another country might reduce the value or liquidity of investments.
Future political and economic developments, the possible imposition
of withholding taxes on dividend income, the possible seizure or
nationalization of foreign holdings, the possible establishment of
exchange controls or freezes on the convertibility of currency, or
the adoption of other governmental restrictions might adversely
affect an investment in foreign securities. Additionally, foreign
banks and foreign branches of domestic banks may be subject to
LINDNER FUNDS 6
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less stringent reserve requirements, and to different accounting,
auditing and recordkeeping requirements.
Foreign risks will normally be greatest when a Fund invests in
issuers located in emerging markets. Securities issued in emerging
market countries, in particular, may be more sensitive to certain
economic changes and less liquid. These countries are located in the
Asia/Pacific region, Eastern Europe, Latin and South America and
Africa. In general, the securities markets of these countries are
less liquid, are subject to greater price volatility, have smaller
market capitalizations and have problems with securities
registration and custody. In addition, because the securities
settlement procedures are less developed in these countries, a Fund
may be required to deliver securities before receiving payment and
also be unable to complete transactions during market disruptions.
As a result of these and other risks, investments in these countries
generally present a greater risk of loss to a Fund. Investment in
foreign securities also involves higher costs than investment in
U.S. securities, including higher transaction and custody costs as
well as the imposition of additional taxes by foreign governments.
Each of the Funds, other than the Government Money Market Fund, may
invest in foreign currency denominated securities. A Fund which
invests in foreign currency denominated securities will also be
subject to the risk of negative foreign currency rate fluctuations.
A change in the exchange rate between U.S. dollars and foreign
currency may reduce the value of an investment made in a security
denominated in that foreign currency. The International Fund may,
but is not required to, hedge against foreign currency risk, and the
other Funds may do so on unsettled trades.
SMALL CAP STOCK RISK (SMALL-CAP FUND)
Smaller capitalization stocks involve greater risks than those
associated with larger, more established companies. Small company
stocks may be subject to more abrupt or erratic price movements, for
several reasons. These stocks are traded in lower volumes and the
issuers of these stocks are more sensitive to changing conditions
and may have less certain growth prospects. Also, there are fewer
market makers for these stocks and wider spreads between quoted bid
and asked prices in the over-the-counter market. Small cap stocks
also tend to be less liquid, particularly during periods of market
disruption. There is normally less publicly available information
concerning these securities. Small companies in which the Funds may
invest may have limited product lines, markets or financial
resources, or may be dependent on a small management group.
LEVERAGE RISK (LARGE-CAP FUND AND MARKET NEUTRAL FUND)
Each Fund other than the Government Money Market Fund has the
ability to borrow money and use the borrowings for investment
purposes ("leverage"). Borrowing may not exceed the limits
established from time to time by the Board of Trustees, which is
currently set at 5% of total assets after giving effect to the
borrowing. At present, the Adviser intends to use borrowed funds for
investing only for the Large-Cap Fund and the Market Neutral Fund.
Leveraging creates an opportunity for increased net income and
capital appreciation but, at the same time, creates special risk
considerations. For example, leveraging may exaggerate changes in
the net asset value of a Fund's shares and in the yield on a Fund's
portfolio. Although the principal of
LINDNER FUNDS 7
<PAGE>
such borrowings will be fixed, a Fund's assets may change in value
during the time the borrowing is outstanding. Leveraging will create
interest expense for the Fund which can exceed the income from the
assets retained. To the extent the income derived from securities
purchased with borrowed funds exceeds the interest a Fund will have
to pay, the Fund's net income will be greater than if leveraging
were not used. Conversely, if the income from the assets retained
with borrowed monies is not sufficient to cover the cost of
leveraging, the net income of the Fund will be less than if
leveraging were not used, and therefore the amount available for
distribution to stockholders as dividends will be reduced. If, due
to market fluctuations or other reasons, a Fund must sell securities
to repay borrowings, the Fund may have to do so at a time when it is
disadvantageous.
PERFORMANCE SUMMARY
The bar charts below illustrate the risks of investing in the Funds.
The bar charts show you how much an investment in Investor Shares of
a Fund has changed in value over each calendar year, assuming all
dividends and capital gains are reinvested, during each of the last
10 calendar years (or from the year of inception if shorter than 10
years). These returns differ from the total returns shown for each
Fund's fiscal year Financial Highlights. As with all mutual funds,
past performance is not a prediction of the future.
- --------------------------------------------------------------
CALENDAR YEAR TOTAL RETURNS<F1>
Asset Allocation Fund Total chart
Large-Cap Fund Total chart
Small-Cap Fund Total chart
Utility Fund Total chart
LINDNER FUNDS 8
<PAGE>
Market Neutral Fund Total chart
[FN]
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<F1> The Funds have a fiscal year that ends on June 30. Total returns (not
annualized), for each Fund for the three months ended March 31, 1999, are as
follows--Asset Allocation Fund: -4.34%; Large-Cap Fund: -12.38%; Small-Cap
Fund: -9.12%; Utility Fund: 6.51%; and Market Neutral Fund: 1.06%.
<F2> Until July 1, 1999, this Fund was managed with a different investment
objective and different principal investment strategies.
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AVERAGE ANNUAL TOTAL RETURNS
The tables below compare each Fund's Investor Share and
Institutional Share performance over varying periods ending on
December 31, 1998, to the performance of a broadly based securities
market index and other indices that are believed by the Adviser to
have similar investment objectives. This tells you what constant
annual return would have produced the actual cumulative return of
the Fund or index. As with all mutual funds, past performance is not
a prediction of the future.
<TABLE>
<CAPTION>
Since
INVESTOR SHARES--Fund or Index 1 Year 5 Years 10 Years Inception<F1>
- ------------------------------ ------ ------- -------- -------------
<S> <C> <C> <C> <C>
Asset Allocation Fund -13.65% 6.95% 9.40% 15.58%
S&P 500 Index 18.45% 26.09% 18.60% 14.75%
Large-Cap Fund -30.29% 5.38% 6.61% 15.27%
S&P 500 Index 18.45% 26.09% 18.60% 13.01%
Small-Cap Fund -17.46% 11.48% n/a 10.71%
Russell 2000 Index -16.19% 10.81% 10.26% 9.46%
Utility Fund -8.71% 12.41% n/a 12.15%
Dow Jones Utility Index 6.19% 13.48% n/a 8.74%
Market Neutral Fund <F2> 0.55% -0.82% n/a -0.66%
S&P 500 Index 18.45% 26.09% 18.60% 24.24%
<CAPTION>
Since
INSTITUTIONAL SHARES--Fund or Index 1 Year 5 Years 10 Years Inception<F1>
- ----------------------------------- ------ ------- -------- -------------
<S> <C> <C> <C> <C>
Asset Allocation Fund -13.82% n/a n/a 3.27%
S&P 500 Index 18.45% n/a n/a 30.30%
Large-Cap Fund -30.66% n/a n/a -5.02%
S&P 500 Index 18.45% n/a n/a 31.04%
Small-Cap Fund -17.43% n/a n/a 7.50%
Russell 2000 Index -16.19% n/a n/a 8.20%
Utility Fund -9.12% n/a n/a 8.66%
Dow Jones Utility Index 6.19% n/a n/a 21.18%
Market Neutral Fund <F2> 0.84% n/a n/a -9.20%
S&P 500 Index 18.45% n/a n/a 31.04%
<FN>
- --------
<F1> The date of inception is different for each Fund and for each class within
a Fund.
<F2> Until July 1, 1999, this Fund was managed with a different investment
objective and different principal investment strategies.
</TABLE>
The yield on the Government Money Market Fund for the seven day
period ended on December 31, 1998 was 4.50%. This yield is based on
historical earnings, which will fluctuate and should not be
considered as representative of future performance. You may call
1-800-995-7777 to learn the current 7-day yield on the Government
Money Market Fund.
LINDNER FUNDS 9
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FUND EXPENSES
These tables describe the fees and expenses that you may pay if you
buy and hold Investor Shares or Institutional Shares of one of the
Funds.
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SHAREHOLDER FEES (fees paid directly from your investment)
<TABLE>
<S> <C>
Maximum sales charge (load) imposed on purchases............ None
Maximum sales charge (load) imposed on reinvested
dividends................................................. None
Deferred sales charge (load)................................ None
Redemption fee (as a percentage of redemption proceeds,
payable only if shares are redeemed within 60 days of
purchase--see "Redemption of Shares")<F*>................. 2%
Exchange fee................................................ None
Wire transfer fee (per requested transaction, subject to
change based upon charges incurred or levied by the Funds'
Custodian for outgoing wires) (see "Purchase of Shares and
Shareholder Inquiries" and "Redemption of Shares")........ $10
<FN>
- -------
<F*> The Government Money Market Fund does not charge this redemption fee.
</TABLE>
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ANNUAL FUND OPERATING EXPENSES (expenses that are deducted from
Fund assets)
<TABLE>
<CAPTION>
Total
Management 12b-1 Other Operating
Fees Fees Expenses<F1> Expenses
---------- ----- ------------ ---------
(as a percentage of average daily net assets)
<S> <C> <C> <C> <C>
ASSET ALLOCATION FUND
Investor Shares 0.51% None 0.10% 0.61%
Institutional Shares 0.51% 0.25% 0.10% 0.86%
LARGE-CAP FUND
Investor Shares 0.33% None 0.11% 0.44%
Institutional Shares 0.33% 0.25% 0.11% 0.69%
SMALL-CAP FUND
Investor Shares 0.70% None 0.17% 0.87%
Institutional Shares 0.70% 0.25% 0.17% 1.12%
UTILITY FUND
Investor Shares 0.70% None 0.21% 0.91%
Institutional Shares 0.70% 0.25% 0.21% 1.16%
MARKET NEUTRAL FUND
Investor Shares 0.67% None 0.56% 1.23%
Institutional Shares 0.67% 0.25% 0.56% 1.48%
GOVERNMENT MONEY MARKET FUND
Investor Shares <F2> 0.15% None 0.28% 0.43%
<FN>
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<F1> Other Expenses include an administration fee of 0.20% of average daily net
assets of the Government Money Market Fund payable to Lindner Asset Management,
Inc., as administrator.
<F2> The Adviser has voluntarily agreed to waive a portion of its
administrative fee to the extent necessary to maintain the Government Money
Market Fund's annual Total Operating Expenses at not more than 0.50% of average
net assets during the fiscal year. For the fiscal year ended June 30, 1998, no
waiver was required. The Adviser can terminate this fee waiver at any time, in
its sole discretion.
</TABLE>
LINDNER FUNDS 10
<PAGE>
- --------------------------------------------------------------
EXPENSE EXAMPLES
These examples may help you to compare the costs of investing in one
of the Lindner Funds with the costs of investing in other mutual
funds. Because the table uses hypothetical (assumed) conditions,
your actual costs may be higher or lower. These examples should not
be considered as representing past or future performance or expenses
of any Fund.
You would pay the following expenses on a $10,000 investment,
assuming (1) Total Operating Expenses of each Fund are as set forth
in the table above, (2) each Fund has a 5% annual return and (3) you
redeem your shares at the end of each time period:
<TABLE>
<CAPTION>
1 Year 3 Years 5 Years 10 Years
------ ------- ------- --------
<S> <C> <C> <C> <C>
ASSET ALLOCATION FUND
Investor Shares $ 62 $195 $ 340 $ 762
Institutional Shares $ 87 $274 $ 477 $1,060
LARGE-CAP FUND
Investor Shares $ 45 $141 $ 226 $ 555
Institutional Shares $ 70 $220 $ 384 $ 858
SMALL-CAP FUND
Investor Shares $ 89 $277 $ 482 $1,073
Institutional Shares $114 $356 $ 617 $1,363
UTILITY FUND
Investor Shares $ 93 $290 $ 504 $1,119
Institutional Shares $118 $368 $ 638 $1,408
MARKET NEUTRAL FUND
Investor Shares $125 $390 $ 676 $1,488
Institutional Shares $151 $467 $ 807 $1,768
GOVERNMENT MONEY MARKET FUND
Investor Shares $ 44 $138 $ 241 $ 542
</TABLE>
LINDNER FUNDS 11
<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 ASSET ALLOCATION FUND <F1>
----------------------------------
Period Ended February 28,
<S> <C> <C> <C> <C> <C> <C> <C>
1994 $27.01 $1.88 $1.06 $2.94 $1.74 $0.58 $2.32
1995 $27.63 $1.93 ($2.13) ($0.20) $1.90 $0.57 $2.47
<CAPTION>
Period Ended June 30,
<S> <C> <C> <C> <C> <C> <C> <C>
1995 $24.96 $0.95 $1.05 $2.00 $0.96 $0.00 $0.96
1996 $26.00 $1.80 $2.29 $4.09 $1.79 $0.23 $2.02
1997 $28.07 $1.63 $0.70 $2.33 $1.68 $0.78 $2.46
1998 $27.94 $1.83 $2.02 $3.85 $1.71 $2.49 $4.20
<CAPTION>
Period Ended December 31,
<S> <C> <C> <C> <C> <C> <C> <C>
1998 <F2> $27.59 $1.08 ($3.59) ($2.51) $1.05 $0.50 $1.55
<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)
--------- ----------- ---------- ---------- --------- -------------
LINDNER ASSET ALLOCATION FUND <F1>
----------------------------------
Period Ended February 28,
<S> <C> <C> <C> <C> <C> <C>
1994 $27.63 11.19% 0.64% 7.01% 43.20% $1,532
1995 $24.96 -0.44% 0.61% 7.76% 29.79% $1,697
<CAPTION>
Period Ended June 30,
<S> <C> <C> <C> <C> <C> <C>
1995 $26.00 8.12% 0.21% 2.43% 11.00% $1,903
1996 $28.07 16.14% 0.60% <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
<CAPTION>
Period Ended December 31,
<S> <C> <C> <C> <C> <C> <C>
1998 <F2> $23.53 -9.10% 0.32% 4.05% 13.23% $1,152
<PAGE>
<CAPTION>
LINDNER LARGE-CAP FUND <F3>
---------------------------
Period Ended June 30,
<S> <C> <C> <C> <C> <C> <C> <C>
1994 $22.32 $0.38 $0.71 $1.09 $0.46 $0.53 $0.99
1995 $22.42 $0.43 $2.66 $3.09 $0.34 $1.84 $2.18
1996 $23.33 $0.40 $4.47 $4.87 $0.47 $1.34 $1.81
1997 $26.39 $0.36 $2.72 $3.08 $0.39 $3.10 $3.49
1998 $25.98 $0.38 ($0.27) $0.11 $0.34 $3.48 $3.82
<CAPTION>
Period Ended December 31,
<S> <C> <C> <C> <C> <C> <C> <C>
1998 <F2> $22.27 $0.13 ($3.19) ($3.06) $0.32 $2.74 $3.06
<CAPTION>
LINDNER LARGE-CAP FUND <F3>
---------------------------
Period Ended June 30,
<S> <C> <C> <C> <C> <C> <C>
1994 $22.42 4.83% 0.65% 1.69% 37.92% $1,528
1995 $23.33 14.89% 0.54% 1.89% 24.94% $1,446
1996 $26.39 21.95% 0.63% <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
<CAPTION>
Period Ended December 31,
<S> <C> <C> <C> <C> <C> <C>
1998 <F2> $16.15 -13.61% 0.32% 0.53% 19.49% $616
<FN>
---------
<F1> Historical performance information is for Lindner Dividend Fund, Inc.
(LDFI), the predecessor to the Asset Allocation Fund. The Asset Allocation
Fund succeeded to all of the assets and liabilities of LDFI on June 30,
1995, pursuant to a reorganization approved by shareholders on June 29,
1995.
<F2> Unaudited.
<F3> Historical performance is for Lindner Fund, Inc. (LFI), the predecessor to
the Large-Cap Fund. The Large-Cap Fund succeeded to all of the assets and
liabilities of LFI on June 30, 1995, pursuant to a reorganization approved
by shareholders on June 29, 1995.
<F4> Total return for periods of less than a year are not annualized. Total
return shows how much an investment has changed over the year shown,
assuming all dividends and capital gains are reinvested and shares are
redeemed at net asset values at the end of the year.
<F5> Expense ratios for periods after September 1, 1995, are computed using
gross expenses, which include fees reduced in connection with specific waiver
agreements.
</TABLE>
LINDNER FUNDS 12
<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 SMALL-CAP FUND <F1>
---------------------------
Period Ended June 30,
<S> <C> <C> <C> <C> <C> <C> <C>
1994 $5.00 $0.01 ($0.22) ($0.21) $0.00 $0.00 $0.00
1995 $4.79 ($0.03) $0.71 $0.68 $0.01 $0.00 $0.01
1996 $5.46 $0.00 $1.30 $1.30 $0.00 $0.61 $0.61
1997 $6.15 $0.04 $1.49 $1.53 $0.01 $0.00 $0.01
1998 $7.67 $0.09 $1.07 $1.16 $0.04 $0.30 $0.34
<CAPTION>
Period Ended December 31,
<S> <C> <C> <C> <C> <C> <C> <C>
1998 <F2> $8.49 $0.03 ($0.55) ($0.52) $0.09 $0.31 $0.40
<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)
--------- ----------- ---------- ---------- --------- -------------
LINDNER SMALL-CAP FUND <F1>
---------------------------
Period Ended June 30,
<S> <C> <C> <C> <C> <C> <C>
1994 $4.79 -4.20% 0.96% 0.52% 5.03% $5
1995 $5.46 14.32% 1.65% -0.57% 158.62% $8
1996 $6.15 25.70% 1.22% <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
<CAPTION>
Period Ended December 31,
<S> <C> <C> <C> <C> <C> <C>
1998 <F2> $7.57 -5.97% 0.48% 0.38% 24.46% $44
<CAPTION>
LINDNER UTILITY FUND <F3>
-------------------------
Period Ended June 30,
<S> <C> <C> <C> <C> <C> <C> <C>
1994 $10.00 $0.05 ($0.01) $0.04 $0.02 $0.00 $0.02
1995 $10.02 $0.39 $0.84 $1.23 $0.39 $0.09 $0.48
1996 $10.77 $0.35 $3.42 $3.77 $0.34 $0.00 $0.34
1997 $14.20 $0.39 $1.60 $1.99 $0.42 $0.02 $0.44
1998 $15.75 $0.37 $1.96 $2.33 $0.37 $0.93 $1.30
<CAPTION>
Period Ended December 31,
<S> <C> <C> <C> <C> <C> <C> <C>
1998 <F2> $16.78 $0.21 ($2.37) ($2.16) $0.22 $2.41 $2.63
<CAPTION>
LINDNER UTILITY FUND
---------------------
Period Ended June 30,
<S> <C> <C> <C> <C> <C> <C>
1994 $10.02 0.39% 1.30% 0.76% 44.95% $11
1995 $10.77 12.51% 1.04% 3.02% 190.70% $18
1996 $14.20 35.39% 0.95% <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
<CAPTION>
Period Ended December 31,
<S> <C> <C> <C> <C> <C> <C>
1998 <F2> $11.99 -12.77% 0.50% 1.44% 76.04% $28
<FN>
---------
<F1> Operations commenced on January 24, 1994.
<F2> Unaudited.
<F3> Operations commenced on October 4,1993.
<F4> Total return for periods of less than a year are not annualized. Total
return shows how much an investment has changed over the year shown,
assuming all dividends and capital gains are reinvested and shares are
redeemed at net asset values at the end of the year.
<F5> Expense ratios for periods after September 1, 1995, are computed using
gross expenses, which include fees reduced in connection with specific
waiver agreements.
</TABLE>
LINDNER FUNDS 13
<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 MARKET NEUTRAL FUND <F1>
--------------------------------
Period Ended June 30,
<S> <C> <C> <C> <C> <C> <C> <C>
1994 $7.00 $0.01 $0.16 $0.17 $0.00 $0.00 $0.00
1995 $7.17 $0.11 ($0.10) $0.01 $0.05 $0.04 $0.09
1996 $7.09 $0.26 $1.32 $1.58 $0.31 $0.00 $0.31
1997 $8.36 $0.29 ($1.81) ($1.52) $0.14 $0.00 $0.14
1998 $6.70 $0.23 ($0.89) ($0.66) $0.39 $0.00 $0.39
<CAPTION>
Period Ended December 31,
<S> <C> <C> <C> <C> <C> <C> <C>
1998 <F2> $5.65 $0.12 $0.05 $0.17 $0.17 $0.00 $0.17
<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)
--------- ----------- ---------- ---------- --------- -------------
LINDNER MARKET NEUTRAL FUND <F1>
--------------------------------
Period Ended June 30,
<S> <C> <C> <C> <C> <C> <C>
1994 $7.17 2.43% 0.66% 0.26% 0.89% $31
1995 $7.09 0.10% 1.27% 2.45% 122.64% $65
1996 $8.36 23.44% 1.24% <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
<CAPTION>
Period Ended December 31,
<S> <C> <C> <C> <C> <C> <C>
1998 <F2> $5.65 3.02% 0.75% 1.82% 69.60% $24
<CAPTION>
LINDNER GOVERNMENT MONEY MARKET FUND <F3>
-----------------------------------------
Period Ended June 30,
<S> <C> <C> <C> <C> <C> <C>
1997 $1.00 $0.05 $0.00 $0.05 $0.05 $0.00 $0.05
1998 $1.00 $0.05 $0.00 $0.05 $0.05 $0.00 $0.05
<CAPTION>
Period Ended December 31,
<S> <C> <C> <C> <C> <C> <C>
1998 <F2> $1.00 $0.02 $0.00 $0.02 $0.02 $0.00 $0.02
<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
<CAPTION>
Period Ended December 31,
<S> <C> <C> <C> <C> <C> <C>
1998 <F2> $1.00 2.46% 0.25% 2.37% -- $53
<FN>
---------
<F1> Operations commenced February 11, 1994.
<F2> Unaudited.
<F3> Operations commenced July 6, 1996.
<F4> Total return for periods of less than a year are not annualized. Total
return shows how much an investment has changed over the year shown,
assuming all dividends and capital gains are reinvested and shares are
redeemed at net asset values at the end of the year.
<F5> Expense ratios for periods after September 1, 1995, are computed using
gross expenses, which include fees reduced in connection with specific
waiver agreements.
</TABLE>
LINDNER FUNDS 14
<PAGE>
<TABLE>
- ---------------------------------------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
(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 ASSET ALLOCATION FUND
-----------------------------
Period Ended June 30,
<S> <C> <C> <C> <C> <C> <C> <C>
1997 <F1> $28.07 $1.61 $0.66 $2.27 $1.66 $0.78 $2.44
1998 $27.90 $1.78 $2.00 $3.78 $1.66 $2.49 $4.15
<CAPTION>
Period Ended December 31,
<S> <C> <C> <C> <C> <C> <C> <C>
1998 <F2> $27.53 $1.08 ($3.61) ($2.53) $1.05 $0.50 $1.55
<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 <F5> Net Assets Net Assets Rate Thousands)
--------- ----------- ---------- ---------- --------- ----------
LINDNER ASSET ALLOCATION FUND
-----------------------------
Period Ended June 30,
<S> <C> <C> <C> <C> <C> <C>
1997 <F1> $27.90 9.84% 0.85% 5.69% 40.32% $2,010
1998 $27.53 14.49% 0.88% 6.14% 28.56% $2,777
<CAPTION>
Period Ended December 31,
<S> <C> <C> <C> <C> <C> <C>
1998 <F2> $23.45 -9.19% 0.50% 3.94% 13.23% $884
<CAPTION>
LINDNER LARGE-CAP FUND
----------------------
<S> <C> <C> <C> <C> <C> <C> <C>
Period Ended June 30,
1997 <F3> $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
<CAPTION>
Period Ended December 31,
<S> <C> <C> <C> <C> <C> <C> <C>
1998 <F2> $22.20 $0.13 ($3.23) ($3.10) $0.31 $2.74 $3.05
<CAPTION>
LINDNER LARGE-CAP FUND
----------------------
<S> <C> <C> <C> <C> <C> <C>
Period Ended June 30,
1997 <F3> $25.94 15.36% 0.46% 1.29% 36.39% $102
1998 $22.20 0.08% 0.75% 1.05% 44.43% $369
<CAPTION>
Period Ended December 31,
<S> <C> <C> <C> <C> <C> <C>
1998 <F2> $16.05 -13.85% 0.48% 0.45% 19.49% $257
<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
<CAPTION>
Period Ended December 31,
<S> <C> <C> <C> <C> <C> <C> <C>
1998 <F2> $8.48 $0.03 ($0.55) ($0.52) $0.08 $0.31 $0.39
<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% $0.2
1998 $8.48 15.02% 1.31% 0.99% 24.52% $154.0
<CAPTION>
Period Ended December 31,
<S> <C> <C> <C> <C> <C> <C>
1998 <F2> $7.57 -5.91% 0.61% 0.26% 24.46% $175
<FN>
---------
<F1> For the period July 9, 1996 (initial purchase) to June 30, 1997.
<F2> Unaudited.
<F3> For the period July 12, 1996 (initial purchase) to June 30, 1997.
<F4> For the period November 1, 1996 (initial purchase) to June 30, 1997.
<F5> Total return for periods of less than a year are not annualized. Total
return shows how much an investment has changed over the year shown,
assuming all dividends and capital gains are reinvested and shares are
redeemed at net asset values at the end of the year.
</TABLE>
LINDNER FUNDS 15
<PAGE>
<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 UTILITY FUND
- --------------------
Period Ended June 30,
<S> <C> <C> <C> <C> <C> <C> <C>
1997<F1> $14.20 $0.27 $1.59 $1.86 $0.31 $0.02 $0.33
1998 $15.74 $0.26 $2.03 $2.29 $0.26 $0.93 $1.19
<CAPTION>
Period Ended December 31,
<S> <C> <C> <C> <C> <C> <C> <C>
1998<F2> $16.84 $0.08 ($2.28) ($2.20) $0.09 $2.41 $2.50
<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 <F4> Net Assets Net Assets Rate Thousands)
--------- ----------- ---------- ---------- --------- ----------
LINDNER UTILITY FUND
- --------------------
Period Ended June 30,
<S> <C> <C> <C> <C> <C> <C>
1997<F1> $15.74 14.52% 0.75% 2.42% 86.44% $54
1998 $16.84 15.23% 1.22% 1.99% 99.37% $9
<CAPTION>
Period Ended December 31,
<S> <C> <C> <C> <C> <C> <C>
1998<F2> $12.14 -13.00% 0.66% 1.38% 76.04% $0.2
<CAPTION>
LINDNER MARKET NEUTRAL FUND
- ---------------------------
Period Ended June 30,
<S> <C> <C> <C> <C> <C> <C> <C>
1997<F3> $8.36 $0.26 ($1.81) ($1.55) $0.14 $0.00 $0.14
1998 $6.67 ($0.16) ($0.49) ($0.65) $0.00 $0.00 $0.00
<CAPTION>
Period Ended December 31,
<S> <C> <C> <C> <C> <C> <C> <C>
1998<F2> $6.02 $0.12 $0.06 $0.18 $0.17 $0.00 $0.17
<CAPTION>
LINDNER MARKET NEUTRAL FUND
- ---------------------------
Period Ended June 30,
<S> <C> <C> <C> <C> <C> <C>
1997<F3> $6.67 -18.61% 1.37% 4.45% 457.57% $1.6
1998 $6.02 -9.75% 1.86% 16.68% 109.32% $0.1
<CAPTION>
Period Ended December 31,
<S> <C> <C> <C> <C> <C> <C>
1998<F2> $6.03 3.00% 0.46% 1.69% 69.60% $0.1
<FN>
- ---------
<F1> For the period October 31, 1996 (initial purchase) to June 30, 1997.
<F2> Unaudited.
<F3> For the period July 11, 1996 (initial purchase) to June 30, 1997.
<F4> Total return for periods of less than a year are not annualized. Total
return shows how much an investment has changed over the year shown,
assuming all dividends and capital gains are reinvested and shares are
redeemed at net asset values at the end of the year.
</TABLE>
LINDNER FUNDS 16
<PAGE>
<PAGE>
THE FUNDS IN DETAIL
The investment objective of each Fund is a "fundamental" policy and
may not be changed without a vote by the Fund's shareholders. The
principal investment strategies for each Fund are operational
policies and may be changed by the Trust without approval by the
shareholders of a Fund. Each Fund is a "diversified" fund.
Lindner Asset Management, Inc. (formerly known as "Ryback Management
Corporation"), whose address is 7711 Carondelet Avenue, Suite 700,
St. Louis, Missouri 63105, is the investment adviser for all of the
Funds, which means that it is responsible for managing each Fund's
assets according to its investment objective (goal) and its
investment strategies. For easier reading, Lindner Asset Management,
Inc. is referred to as "Lindner Management" or the "Adviser".
Lindner Management is a professional investment advisory firm that
has been providing investment management services to the Lindner
Funds since 1993.
Concise fund-by-fund descriptions begin on the next page and provide
the following information:
* Goals and strategies of each Fund (percentages of Fund assets are
based on total assets unless otherwise indicated).
* The primary types of securities in which a Fund may invest.
* A line graph comparing the performance of Investor Shares and
Institutional Shares of each Fund to certain selected broad-based
securities market indices that the Adviser deems to be appropriate.
These graphs show the value of a hypothetical $10,000 initial
investment in Investor Shares and Institutional Shares of each Fund
at the end of each fiscal year for the past 10 years, or for that
shorter period of time that a Fund or a share class of a Fund has
been in existence. For purposes of these graphs, it is assumed that
all dividends and capital gains distributions from the Funds and the
stocks comprising the comparative indices are reinvested.
The Trust's Annual Report to Shareholders includes the annual report
of the independent auditors for the Trust and the audited financial
statements of each Fund. It is available free upon request.
LINDNER FUNDS 17
<PAGE>
<PAGE>
ASSET ALLOCATION FUND
The investment objective of the Asset Allocation Fund is to produce
current income through investments in common stocks, convertible and
non-convertible preferred stocks, corporate bonds and debt
securities issued or guaranteed by the U.S. government that provide
a yield higher than that paid on either the Standard & Poor's 500
Stock Index or on passbook savings accounts. Capital appreciation is
a secondary investment objective. To pursue this goal, the Asset
Allocation Fund may invest in any type or class of security without
regard to market capitalization size. Under normal market
conditions, the Asset Allocation Fund will invest in common stocks,
fixed income securities, securities convertible into common stocks
(such as warrants and preferred stocks) and cash equivalent
securities. The Asset Allocation Fund normally invests 45% to 60% of
its total assets in common stocks and securities convertible into
common stocks, 25% to 50% of its total assets in fixed income
securities and up to 30% of its total assets in cash equivalent
securities. These securities may be sold in unregistered "private
placements" to qualified institutional buyers ("Rule 144A
Securities").
The Adviser selects common stocks primarily for the purpose of
providing long-term capital growth, and invests predominantly in
those companies which are growth-oriented and have exhibited
consistent, above-average growth in revenues and earnings relative
to their valuations. The Asset Allocation Fund will invest the fixed
income portion of its investments in a range of interest-paying debt
securities, including corporate bonds, notes, debentures and
asset-backed securities, obligations issued or guaranteed by the
U.S. government or its agencies and securities representing
interests in pools of mortgages issued or guaranteed by the U.S.
government or its agencies. Up to 35% of the Asset Allocation Fund's
total assets may be invested in debt securities that are rated below
investment grade or are unrated ("junk bonds"). In addition to
securities of U.S. companies, the Asset Allocation Fund may invest a
portion of its assets in securities of foreign companies (including
ADRs) and in equity securities issued by real estate investment
trusts and it may invest a portion of its assets to purchase put
options for hedging purposes.
The cash equivalent securities of the Asset Allocation Fund normally
consist of short-term obligations (with maturities of 18 months or
less) consisting of domestic and foreign commercial paper, variable
rate master demand notes, bankers' acceptances, certificates of
deposit issued by domestic banks or domestic branches of foreign
banks, obligations issued by the U.S. government or its agencies and
repurchase agreements. The Asset Allocation Fund may also invest a
portion of its assets in securities issued by other investment
companies. Before you invest, please read "More About Risk" on page
29.
For temporary defensive or emergency purposes, the Asset Allocation
Fund may invest all or a portion of its assets in short-term
securities issued by the U.S. government or its agencies and
short-term debt securities issued by U.S. corporations that are
rated in one of the four highest categories by a nationally
recognized securities rating organization. If the Fund takes a
temporary defensive position, it may not achieve its investment
objective.
LINDNER ASSET ALLOCATION FUND 18
<PAGE>
<PAGE>
- --------------------------------------------------------------
LINE 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, 1988 to December 31, 1998 and Institutional Shares from
July 9, 1996 to December 31, 1998:
[Lindner Asset Allocation Fund Graph]
PAST PERFORMANCE IS NOT PREDICTIVE OF FUTURE PERFORMANCE
LINDNER ASSET ALLOCATION FUND 19
<PAGE>
<PAGE>
LARGE-CAP FUND
The investment objective of the Large-Cap Fund is long-term capital
appreciation through investments in common stocks or securities
convertible into common stock. The production of current income is a
secondary investment objective. To pursue this goal, under normal
circumstances the Large-Cap Fund will invest at least 65% of its
total assets in common stocks and equity securities of large
capitalization U.S. companies, which are those that have a market
capitalization in the range of the Russell 1000 Index. At March 31,
1999, this range of capitalization was from $1.45 billion to $456
billion. Equity securities also includes preferred stocks,
securities convertible into common stock and warrants to purchase
common stocks. Stock selection may reflect either a growth or value
investment approach. The Large-Cap Fund generally invests in between
50 to 400 companies that are diversified across sectors. The
Large-Cap Fund has tended to emphasize, or overweight, certain
sectors that the Adviser believes offers greater potential for
growth of capital at the time, such as financial services,
technology and energy stocks. These weightings may change from time
to time in the future. The Large-Cap Fund may borrow money from
banks to use for investment purposes (a practice known as
"leveraging"), which may increase the risk of loss to investors in
declining market situations.
When selecting securities for the Large-Cap Fund, the Adviser blends
quantitative and fundamental financial analyses to identify
companies with strong cash flows, secure market franchises and
revenue growth that is among the highest for the particular
industry. A strong balance sheet and strong management are other
factors that the Adviser considers. In addition to securities of
U.S. companies, the Large-Cap Fund may invest a portion of its
assets in securities of foreign companies (including ADRs) and in
debt securities and it may invest a portion of its assets to
purchase put options for hedging purposes. The Large-Cap Fund also
may invest a portion of its assets in Rule 144A Securities and in
equity securities issued by real estate investment trusts. Before
you invest, please read "More About Risk" on page 29.
For temporary defensive or emergency purposes, the Large-Cap Fund
may invest all or a portion of its assets in short-term debt
securities issued by the U.S. government or its agencies and
short-term debt securities issued by U.S. corporations that are
rated in one of the four highest categories by a nationally
recognized securities rating organization. If the Large-Cap Fund
takes a temporary defensive position, it may not achieve its
investment objective.
LINDNER LARGE-CAP FUND 20
<PAGE>
<PAGE>
- --------------------------------------------------------------
LINE 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,
1988, to December 31, 1998, and Institutional Shares from July 12,
1996 to December 31, 1998:
Lindner Large-Cap Fund Graph
PAST PERFORMANCE IS NOT PREDICTIVE OF FUTURE PERFORMANCE
LINDNER LARGE-CAP FUND 21
<PAGE>
<PAGE>
SMALL-CAP FUND
The investment objective of the Small-Cap Fund is capital
appreciation. The production of current income is a secondary
investment objective. To pursue this goal, under normal
circumstances the Small-Cap Fund will invest at least 65% of its
total assets in common stocks and equity securities of U.S. small
capitalization companies, which are those having a market
capitalization in the range of the Russell 2000 Index. At March 31,
1999, this range of capitalization was from $216 million to $1.44
billion. Equity securities also includes preferred stocks,
securities convertible into common stock and warrants to purchase
common stocks. Stock selection may reflect either a growth or value
investment approach.
When choosing stocks, the Adviser used both fundamental and
quantitative financial analyses to identify companies with
outstanding management, substantial cash flows, potential for
revenue growth in both existing and new markets and a potential for
some catalyst or factor to cause the stock's price to rise. The
Small-Cap Fund generally invests in between 25 and 100 companies
that are diversified across many industries, and it may invest
substantially in certain selected sectors which the Adviser believes
will offer better opportunities for capital growth at the time. The
Fund is diversified across sectors. In addition to securities of
U.S. companies, the Small-Cap Fund may invest a portion of its
assets in securities of foreign companies (including ADRs) and in
debt securities (including up to 20% of its assets in junk bonds),
in Rule 144A Securities, in equity securities issued by real estate
investment trusts and may invest a portion of its assets to purchase
put options for hedging purposes. Before you invest, please read
"More About Risk" on page 29.
For temporary defensive or emergency purposes, the Small-Cap Fund
may invest all or a portion of its assets in short-term debt
securities issued by the U.S. Government or its agencies and
short-term debt securities issued by U.S. corporations that are
rated in one of the four highest categories by a nationally
recognized securities rating organization. If the Small-Cap Fund
takes a temporary defensive position, it may not achieve its
investment objective.
LINDNER SMALL-CAP FUND 22
<PAGE>
<PAGE>
- --------------------------------------------------------------
LINE 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 December 31, 1998 and Institutional Shares from
November 1, 1996 to December 31, 1998:
Lindner Small-Cap Fund Graph
PAST PERFORMANCE IS NOT PREDICTIVE OF FUTURE PERFORMANCE
LINDNER SMALL-CAP FUND 23
<PAGE>
<PAGE>
UTILITY FUND
The Utility Fund's investment objective is to produce current income
through investments in securities of domestic and foreign public
utility companies. Capital appreciation is a secondary investment
objective. To pursue this goal, under normal circumstances the
Utility Fund will invest at least 65% of its total assets in common
stocks, securities convertible into common stocks, and
nonconvertible preferred stocks and bonds issued by domestic and
foreign regulated public utility companies, including gas, electric,
telecommunications, cable television, water and energy companies
("Utilities"), and in companies that are in businesses related to
such Utilities, such as suppliers of raw materials. Some of these
securities may be Rule 144A Securities, and up to 35% of the Utility
Fund's total assets may be invested in junk bonds.
The Utility Fund may invest in securities not currently paying
dividends or interest if the Adviser believes that the company will
begin or resume paying dividends or interest in the foreseeable
future. The Adviser looks for Utilities that it believes are
undervalued but are believed to have long-term growth prospects
substantially better than the economy as a whole. In addition to
securities of Utilities, the Utility Fund may invest a portion of
its assets to purchase put options for hedging purposes. Before you
invest, please read "More About Risk" on page 29.
For temporary defensive or emergency purposes, the Utility Fund may
invest all or a portion of its assets in short-term debt securities
issued by the U.S. government or its agencies and short-term debt
securities issued by U.S. corporations that are rated in one of the
four highest categories by a nationally recognized securities rating
organization. If the Utility Fund takes a temporary defensive
position, it may not achieve its investment objective.
LINDNER UTILITY FUND 24
<PAGE>
<PAGE>
- --------------------------------------------------------------
LINE 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 December 31, 1998 and
Institutional Shares from October 31, 1996 to December 31, 1998:
Lindner Utility Fund Graph
PAST PERFORMANCE IS NOT PREDICTIVE OF FUTURE PERFORMANCE
LINDNER UTILITY FUND 25
<PAGE>
<PAGE>
MARKET NEUTRAL FUND
The investment objective of the Market Neutral Fund is long-term
capital appreciation in both bull and bear markets while maintaining
minimal exposure to general equity market risk by always having both
long and short positions in equity securities issued by U.S.
companies. Long positions will be held in those securities that the
Adviser has identified as undervalued and short positions will be
held in equity securities that the Adviser has identified as
overvalued. To pursue this goal, the Market Neutral Fund will invest
substantially all of its assets in common stocks, securities
convertible into common stocks without regard to quality or rating,
short positions in common stocks and securities convertible into
common stocks, and, to a limited degree, non-convertible preferred
stocks and debt securities without regard to quality or rating. Some
of these securities may be Rule 144A Securities. The Market Neutral
Fund may borrow money from banks to use for investment purposes (a
practice known as "leveraging"), which may increase the risk of loss
to investors in declining market situations.
By taking long and short positions in different securities with
similar characteristics, the Market Neutral Fund attempts to cancel
out the effect of the general stock market movements on the Fund's
performance. The Adviser will determine the size of each long and
short position in analyzing the tradeoff between the attractiveness
of each position and its impact on the risk of the overall
portfolio. The Market Neutral Fund seeks to construct a diversified
portfolio that has minimal net exposure to the U.S. equity market
generally and certain other risk factors.
The Market Neutral Fund's performance objective is to achieve a
total return in excess of the total return on the 3-month U.S.
Treasury Bill. Its performance is not expected to correlate with the
direction of any major U.S. stock market or any general stock market
index. However, the Market Neutral Fund is different from an
investment in 3-month U.S. Treasury Bills because U.S. Treasury
Bills are backed by the full faith and credit of the U.S.
Government, have a fixed rate of return and a short duration and
have no risk of losing capital. Before you invest, please also read
"More About Risk" on page 29. In addition, the short selling
activities of the Market Neutral Fund will accelerate the
recognition of gains for federal income tax purposes because any
gains on short sales are short-term capital gains for tax purposes,
taxable at ordinary income tax rates. This may increase the income
taxes paid by shareholders of the Market Neutral Fund.
For temporary defensive or emergency purposes, the Market Neutral
Fund may invest all or a portion of its assets in short-term debt
securities issued by the U.S. Government or its agencies and
short-term debt securities issued by U.S. corporations that are
rated in one of the four highest categories by a nationally
recognized securities rating organization. If the Market Neutral
Fund takes a temporary defensive position, it may not achieve its
investment objective.
LINDNER MARKET NEUTRAL FUND 26
<PAGE>
<PAGE>
- --------------------------------------------------------------
LINE 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 December 31, 1998 and Institutional Shares from
July 11, 1996 to December 31, 1998:
Lindner 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.
LINDNER MARKET NEUTRAL FUND 27
<PAGE>
<PAGE>
GOVERNMENT MONEY MARKET FUND
The investment objective of the Government Money Market Fund is to
produce current income consistent with preservation of capital and
liquidity. To pursue this goal, the Government Money Market Fund
will invest exclusively in U.S. dollar-denominated debt securities
issued or guaranteed by the U.S. Government, its agencies and
instrumentalities, and in repurchase agreements secured by such
types of securities.
The Government Money Market Fund will invest in securities issued by
U.S. Government agencies or instrumentalities only when the
Subadviser is satisfied that the credit risk of the agency or
instrumentality is minimal. In addition, repurchase agreements will
have maturities of less than seven days, will be fully
collateralized and will be made only with primary securities dealers
having the higher short-term debt rating. Before you invest, please
also read "More About Risk" on page 29.
Firstar Bank, N.A., (formerly called "Star Bank, N.A.") a national
bank headquartered in Cincinnati, Ohio, serves as the Subadviser for
the Government Money Market Fund and manages its portfolio on a
day-to-day basis. Firstar Bank, N.A. currently has over $14 billion
of its own assets and manages 12 mutual funds having assets in
excess of $5 billion, including four money market funds with assets
in excess of $1.9 billion.
LINDNER GOVERNMENT MONEY MARKET FUND 28
<PAGE>
<PAGE>
MORE ABOUT RISK
A Fund's investment goal and principal strategies largely determine
its risk profile. You will find a concise description of each Fund's
risk profile in the summary under the caption "Investments, Risks
and Performance". The fund-by-fund discussions contain more
information. This section describes the various additional risks
that may affect the Funds.
The Funds may use certain investment practices that have higher
risks associated with them. However, each Fund has limitations and
policies designed to reduce many of the risks. The tables under
"Certain Investment Practices" on pages 32 and 33 describe these
practices and the limitations on their use.
The principal risks of investing in each Fund are described above
under the captions "Investments, Risks and Performance" beginning on
page 3 and under the caption "Risk Factors" beginning on page 4. The
following list provides detail about some of the other risks that
may apply to the Funds.
CURRENCY RISK
Fluctuations in exchange rates between the U.S. dollar and foreign
currencies may negatively affect an investment. Adverse changes in
exchange rates may erode or reverse any gains produced by
foreign-currency denominated investments and may increase any
losses.
EXTENSION RISK
An unexpected rise in interest rates may extend the life of a
mortgage-backed security issued by one of the U.S. government
agencies beyond the expected prepayment time, typically reducing the
security's value.
GOVERNMENT OBLIGATIONS RISK
In addition to U.S. Treasury obligations, the Funds may invest in
other securities issued or guaranteed by the U.S. government, its
agencies and instrumentalities. No assurance can be given that the
U.S. government will provide financial support to U.S.
government-sponsored agencies or instrumentalities where it is not
obligated to do so by law.
INFORMATION RISK
Key information about an issuer, security or market may be
inaccurate or unavailable.
LEGAL RISK
Lawsuits or other legal proceedings against the issuer of a security
may adversely affect the issuer, the market value of the security,
or a fund's performance.
MANAGEMENT RISK
A strategy which the Adviser uses may fail to produce the intended
results. The particular securities and types of securities a Fund
holds may under-perform other securities and types of securities.
There can be no assurance that a Fund will achieve its investment
objective. Certain policies of each Fund which may not be changed
without a shareowner vote are described in the SAI.
LINDNER FUNDS 29
<PAGE>
<PAGE>
OPERATIONAL RISK
Some countries, such as Russia, have less developed securities
markets (and related transaction, registration and custody
practices) that could subject a Fund to losses from fraud,
negligence, delay or other actions.
POLITICAL RISK
Foreign governments may expropriate assets, impose capital controls
or punitive taxes, or nationalize a company or an industry. Any of
these actions could have a severe effect on security prices and
impair a Fund's ability to bring its capital or income back to the
U.S. Other political risks include economic policy changes, social
and political instability, military action and war.
PORTFOLIO TURNOVER RISK
The Adviser will not consider the portfolio turnover rate a limiting
factor in making investment decisions for a Fund. A high rate of
portfolio turnover (100% or more) involves correspondingly greater
expenses which must be borne by a Fund and its shareowners. It may
also result in higher short-term capital gains that are taxable to
shareowners. See "Financial Highlights" for the Funds' historical
portfolio turnover rates. The Government Money Market Fund may have
high portfolio turnover, but brokerage commissions are not normally
paid on money market instruments. Portfolio turnover is not expected
to have a material effect on the Government Money Market Fund's net
investment income.
PREPAYMENT RISK
This is the risk that an issuer will exercise its right to pay
principal on an obligation held by a Fund earlier than expected.
This may happen when there is a decline in interest rates. These
events may make a Fund unable to recoup its initial investment and
may result in a Fund having to reinvest the proceeds at lower rates
or reduced yields.
REGULATORY RISK
Governments, agencies or other regulatory bodies may adopt or change
laws or regulations that could adversely affect the issuer, the
market value of the security, or a fund's performance.
SHORT SELLING RISK
When the Adviser anticipates that a security is overvalued it may
sell the security short and borrow the same security from a broker
or other institution to complete the transaction. Later, the
security is purchased and returned to the broker or institution from
which the original security has been borrowed. A fund will incur a
loss as a result of a short sale if the price of the borrowed
security increases between the date of the short sale and the date
on which a fund replaces such security. A fund will realize a gain
if the price declines between those two dates. There is a risk that
a fund will be unable to close out a short position at any
particular time or at an acceptable price. During the time a fund
has a short position in a security it is subject to the risk that
the lender will terminate the loan at a time when the fund is unable
to borrow the same security from another lender. In this event, a
fund may have to purchase the security at a higher price in order to
close out the short position. Although a fund's potential gain is
limited to the amount at which it sold a security short, its
potential loss is limited only by the maximum attainable price of
the security less the price at which the security was sold short.
Until a Fund
LINDNER FUNDS 30
<PAGE>
<PAGE>
replaces a borrowed security, it will maintain a segregated account
containing cash, U.S. Government securities, or other liquid
securities such that the amount deposited in the account plus any
amount deposited with the broker or other custodian as collateral
will at least equal the current market value of the security sold
short.
TAX CONSEQUENCES
The Market Neutral Fund has the side effect of accelerating the
recognition of gains for tax purposes and increasing the short-term
gain component in the Market Neutral Fund. Short-term gains are
ordinarily taxed to shareholders at ordinary income tax rates,
increasing the amount of taxes payable by shareholders.
TEMPORARY INVESTMENT RISK
Each of the Funds may, for temporary defensive purposes, invest a
certain percentage of its total assets in cash or various short-term
instruments. In particular, the Government Money Market Fund may
from time to time hold uninvested cash reserves or invest in
short-term taxable money market obligations, and the International
Fund may invest in money market securities denominated in U.S. or
foreign currencies. When a Fund's assets are invested in these
instruments, the Fund may not be achieving its investment objective.
LINDNER FUNDS 31
<PAGE>
- --------------------------------------------------------------------
CERTAIN INVESTMENT PRACTICES
- --------------------------------------------------------------------
For each of the following investment practices, this table shows the
applicable limitation. These limitations may be changed from time to
time by the Board of Trustees.
KEY TO TABLE:
- --------------------------------------------------------------------
<F*> Permitted without limitation; does not indicate actual use
% Represents an investment limitation as a percentage of total
fund assets; does not indicate actual use
+ Permitted, but not expected to be used to a significant extent
++ Not permitted at present
<TABLE>
<CAPTION>
Asset
Allocation Large-Cap Small-Cap
Fund Fund Fund
<S> <C> <C> <C>
- -------------------------------------------------------------------------------------------------------
BORROWING The borrowing of money from banks to meet
redemptions, for other temporary or emergency purposes
and for investment purposes. + 5% +
- -------------------------------------------------------------------------------------------------------
FOREIGN SECURITIES Securities of foreign issuers. May
include depositary receipts. + 25% 25%
- -------------------------------------------------------------------------------------------------------
INVESTMENT-GRADE DEBT SECURITIES Debt securities rated
within the four highest grades (AAA/Aaa through BBB/Baa)
by Standard & Poor's or Moody's Rating Service, and
unrated securities of comparable quality. 50% <F*> <F*>
- -------------------------------------------------------------------------------------------------------
NON-INVESTMENT-GRADE DEBT SECURITIES Debt securities and
convertible securities rated below the fourth-highest
grade (BBB/Baa) by Standard & Poor's or Moody's Rating
Service, and unrated securities of comparable quality.
Commonly referred to as junk bonds. 35% + +
- -------------------------------------------------------------------------------------------------------
PUT OPTIONS Instruments that provide a right to sell
(put) a particular security at a fixed price within a
certain time period. A fund may purchase put options for
hedging purposes only. 5% 5% 5%
- -------------------------------------------------------------------------------------------------------
REAL-ESTATE INVESTMENT TRUSTS (REITS) Pooled investment
vehicles that invest primarily in income-producing real
estate or real-estate related loans or interests. 15% 15% 15%
- -------------------------------------------------------------------------------------------------------
RESTRICTED AND OTHER ILLIQUID SECURITIES Securities with
restrictions on trading, or those not actively traded.
May include private placements and Rule 144A Securities. 15% 15% 15%
- -------------------------------------------------------------------------------------------------------
SECTOR CONCENTRATION Investing more than 25% of a fund's
net assets in a group of related industries (market
sector). Performance will largely depend upon the
sector's performance, which may differ in direction and
degree from that of the overall stock market. Financial,
economic, business, political and other developments
affecting the sector will have a greater effect on the
fund. ++ ++ ++
- -------------------------------------------------------------------------------------------------------
SECURITIES LENDING Lending portfolio securities to
financial institutions; a fund receives cash, U.S.
government securities or bank letters of credit as
collateral. + ++ +
- -------------------------------------------------------------------------------------------------------
SHORT SALES Selling borrowed securities with the
intention of repurchasing them for a profit on the
expectation that the market price will drop. + + +
- -------------------------------------------------------------------------------------------------------
LINDNER FUNDS 32
<PAGE>
<PAGE>
<CAPTION>
Market Government
Utility Neutral Money Market
Fund Fund Fund
<S> <C> <C> <C>
- -----------------------------------------------------------------------------------------------------
BORROWING The borrowing of money from banks to meet
redemptions or for other temporary or emergency purposes
and for investment purposes. + 5% ++
- -----------------------------------------------------------------------------------------------------
FOREIGN SECURITIES Securities of foreign issuers. May
include depositary receipts. 35% + ++
- -----------------------------------------------------------------------------------------------------
INVESTMENT-GRADE DEBT SECURITIES Debt securities rated
within the four highest grades (AAA/Aaa through BBB/Baa)
by Standard & Poor's or Moody's Rating Service, and
unrated securities of comparable quality. <F*> <F*> ++
- -----------------------------------------------------------------------------------------------------
NON-INVESTMENT-GRADE DEBT SECURITIES Debt securities and
convertible securities rated below the fourth-highest
grade (BBB/Baa) by Standard & Poor's or Moody's Rating
Service, and unrated securities of comparable quality.
Commonly referred to as junk bonds. 35% + ++
- -----------------------------------------------------------------------------------------------------
PUT OPTIONS Instruments that provide a right to sell
(put) a particular security at a fixed price within a
certain time period. A fund may purchase put options for
hedging purposes only. 5% 5% ++
- -----------------------------------------------------------------------------------------------------
REAL-ESTATE INVESTMENT TRUSTS (REITS) Pooled investment
vehicles that invest primarily in income-producing real
estate or real-estate related loans or interests. ++ 15% ++
- -----------------------------------------------------------------------------------------------------
RESTRICTED AND OTHER ILLIQUID SECURITIES Securities with
restrictions on trading, or those not actively traded.
May include private placements and Rule 144A Securities. 15% 15% 10%
- -----------------------------------------------------------------------------------------------------
SECTOR CONCENTRATION Investing more than 25% of a fund's
net assets in a group of related industries (market
sector). Performance will largely depend upon the
sector's performance, which may differ in direction and
degree from that of the overall stock market. Financial,
economic, business, political and other developments
affecting the sector will have a greater effect on a
Fund. 65% ++ ++
- -----------------------------------------------------------------------------------------------------
SECURITIES LENDING Lending portfolio securities to
financial institutions; a fund receives cash, U.S.
government securities or bank letters of credit as
collateral. + + ++
- -----------------------------------------------------------------------------------------------------
SHORT SALES Selling borrowed securities with the
intention of repurchasing them for a profit on the
expectation that the market price will drop. + 50% ++
- -----------------------------------------------------------------------------------------------------
</TABLE>
LINDNER FUNDS 33
<PAGE>
<PAGE>
MANAGEMENT OF THE TRUST
The Trust is governed by a Board of Trustees that meets regularly
throughout the year to review its activities, review contractual
arrangements with companies that provide services to the Trust, and
review each Fund's performance. The majority of Trustees are not
affiliated with the Trust. The Board of Trustees is permitted to
issue an unlimited number of full and fractional shares and to
create an unlimited number of series of shares. Information about
the Trustees and executive officers of the Trust may be found in the
SAI.
Each Fund is managed by Lindner Management, which chooses a Fund's
investments and handles its business affairs. Lindner Management is
also the Administrator, Transfer Agent, and Dividend Disbursing
Agent for the Funds. The Adviser's business address is 7711
Carondelet Avenue, Suite 700, St. Louis, Missouri 63105. The Adviser
is registered as an investment adviser and as a stock transfer agent
with the Securities and Exchange Commission. As of March 31, 1999,
the Adviser managed over $1.5 billion of assets. The Funds'
investments are managed by the Adviser's Investment Committee, which
was established by the Adviser's Board of Directors in February
1999, and no one person is primarily responsible for making
investment recommendations to the Committee. The Investment
Committee is presently comprised of Doug T. Valassis, Chairman and
Chief Executive Officer of the Adviser and Chairman of the Trust,
Mark T. Finn, Vice Chairman and Chief Operating Officer of the
Adviser, and Eric E. Ryback, President of the Adviser and President
of the Trust. Additional information about the background and
experience of these individuals is contained in the SAI.
During the fiscal year ended June 30, 1998, the Trust paid the
Adviser management fees as a percentage of the average net assets of
both Classes of each Fund as follows (after giving effect to any fee
waivers):
Asset Allocation Fund 0.51%
Large-Cap Fund 0.33%
Small-Cap Fund 0.70%
Utility Fund 0.70%
Market Neutral Fund 0.67%
Government Money Market Fund 0.15%
With regard to the Government Money Market Fund only, the Adviser
has entered into a Subadvisory Agreement with Firstar Bank, N.A. The
management fee of the Subadviser is paid by the Adviser. The
Subadviser was founded in 1853 and is the largest bank and trust
organization of Firstar Corporation. Firstar Bank's expertise in
trust administration, investments and estate planning makes it one
of the leading trust institutions in Ohio. Firstar Bank has managed
common trust funds since 1957. As of March 31, 1999, Firstar Bank
also managed 20 mutual funds having a market value in excess of
$10.0 billion. As a part of its regular banking operations, Firstar
Bank may make loans to public companies. Thus, it may be possible
from time to time for the Fund to hold or acquire securities of
companies that are also borrowing clients of Firstar Bank. Both the
Adviser and the Subadviser believe that any such relationship will
not be a factor in the selection of portfolio securities for the
Government Money Market Fund. The Subadviser's business address is
425 Walnut Street, Cincinnati, Ohio 45202.
LINDNER FUNDS 34
<PAGE>
<PAGE>
PRICING OF SHARES FOR PURCHASE OR REDEMPTION
When you buy or redeem shares, the price of each share is its "net
asset value" or "NAV." Each Fund determines the NAV of shares in
each Class at the close of trading (usually 4:00 p.m., Eastern Time)
on each day on which at least one of the following markets is open:
the New York Stock Exchange, the American Stock Exchange, or the
Nasdaq Stock Market. NAV is calculated separately for each Fund by
adding the value of its securities, cash and other assets,
subtracting its liabilities, and then dividing the result by the
number of shares outstanding.
If the Fund receives your order to purchase, or your order for
redemption, prior to the closing of the New York Stock Exchange, the
Fund will process the transaction using the NAV calculated as of
that day's close of business. For purchase orders received and
shares tendered for redemption after the closing of the New York
Stock Exchange, the Fund will determine NAV as of the closing on the
following trading day.
The value of securities held by the Funds is calculated differently
for different types of securities. Investments in securities traded
on a national securities exchange or quoted on the Nasdaq National
Market System are valued at the last reported sales price as of the
close of the New York Stock Exchange. Securities for which no sale
was reported on a particular day are valued at the mean between the
last reported bid and asked prices. Securities which are traded both
in the over-the-counter market and on a stock exchange are valued
according to the broadest and most representative market. Securities
and assets for which quotations are not readily available are valued
at fair value as determined pursuant to procedures approved by the
Trustees.
The value of foreign securities is converted into U.S. dollars at
the rate of exchange prevailing on the valuation date. Purchases and
sales of foreign securities as well as income and expenses related
to such securities are converted at the prevailing rate of exchange
on the respective dates of such transactions.
Portfolio securities of the Government Money Market Fund are valued
on an amortized cost basis, whereby a security is initially valued
at its acquisition cost. Thereafter, a constant straight-line
amortization is assumed each day regardless of the impact of
fluctuating interest rates. This procedure is designed to stabilize
the net asset value per share at $1.00. Under most conditions,
management of the Trust believes that this will be possible, but
there can be no assurance that they can do so on a continuous basis.
PURCHASE OF SHARES AND SHAREHOLDER INQUIRIES
You may purchase Investor Shares directly from a Fund at the per
share NAV. Institutional investors who have written distribution or
service agreements with the Trust or with Lindner Management may
purchase Institutional Shares directly from a Fund at the per share
NAV.
A Fund, at its discretion, may issue Investor Shares in exchange for
publicly traded securities. Such an exchange will result in a
taxable transaction to the person acquiring shares of a Fund. A Fund
may similarly issue Investor Shares in connection with any merger or
consolidation with or acquisition of the assets of any other
investment company or trust.
LINDNER FUNDS 35
<PAGE>
<PAGE>
MINIMUM PURCHASE AMOUNTS
The minimum investments for the Funds are as follows:
For opening a new account:
$2,000 if you are buying Investor Shares of the:
* Asset Allocation Fund,
* Large-Cap Fund, or
* Government Money Market Fund
$3,000 if you are buying Investor Shares of the:
* Small-Cap Fund
* Utility Fund
* Market Neutral Fund
$250 if you are buying Institutional Shares of any Fund.
$250 for Individual Retirement Accounts invested in any Fund.
For existing investors opening additional accounts in either Class
of any Fund:
$500 if you maintain the minimum investment in at least one account.
$250 where additional accounts in any Fund will be registered as a
Uniform Gift to Minors (UGMA) or a Uniform Transfer to Minors
(UTMA).
For subsequent purchases:
$100 if you are buying shares of either Class of any Fund (except in
the case of dividend reinvestment, which has no minimum).
ESTABLISHING A NEW ACCOUNT
In order to establish a new account with any of the Funds, you must
submit a written "Share Purchase Application" to:
Lindner Investments
P.O. Box 11208
St. Louis, Missouri 63105
If you use an overnight form of delivery (e.g. Express Mail), you
should address your application to:
Lindner Investments
7711 Carondelet Ave., Ste. 700
St. Louis, Missouri 63105
You should direct inquiries regarding any other matter to the post
office box address.
Applications to purchase shares may be rejected by the Trust and are
not binding until accepted. The Trust will not accept applications
unless they are accompanied by a check payable in U.S. dollars drawn
on a U.S. bank, savings and loan or credit union. If your check is
returned for insufficient funds, the Custodian will charge a $15 fee
against your account and you will be responsible for any loss
incurred by the Trust.
LINDNER FUNDS 36
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It is the Trust's policy not to accept applications under
circumstances or in amounts considered disadvantageous for
shareholders. Any accounts opened without a proper social security
number or taxpayer identification number may be liquidated and
distributed to the owner(s) of record on the first business day
following the 60th day of investment, minus any backup withholding
tax amount.
WITHHOLDING CERTIFICATION
Before the Trust will establish a new account or make registration
changes to an existing account, you must certify to the Trust on the
Share Purchase Application or on an Internal Revenue Service ("IRS")
Form W-9 your social security or taxpayer identification number and
certify that you are not subject to withholding of dividend payments
due to past under-reporting of such payments. Each Fund is required
by statute to withhold 31% of your distributions ("backup
withholding") if:
(1) you fail to certify as to your social security or taxpayer
identification number;
(2) you fail to certify that you are not subject to withholding;
(3) the IRS notifies the Fund that you have furnished an incorrect
taxpayer identification number; or
(4) the IRS notifies the Fund that you have under reported interest
or dividends in the past.
Dividends to shareholders who are non-resident aliens may be subject
to a 30% United States withholding tax. If you are a non-resident
alien shareholder, you should consult your tax adviser about the
applicability of this withholding tax.
ADDITIONAL PURCHASES
You may buy additional Fund shares in the following ways:
BY MAIL
Fill-out the remittance slip that is attached to your account
confirmation statement, or write a letter indicating that you would
like to purchase shares of either Class of any Fund. Please indicate
the name(s) in which the account is registered and the account
number. Include a check payable to "Lindner Investments" and mail
to:
Lindner Investments
P.O. Box 640672
Cincinnati, Ohio 45264-0672.
BY AUTOMATED CLEARING HOUSE (ACH)
You may request purchase of shares by Automated Clearing House
(ACH), a free electronic transfer service that is used by thousands
of individuals and corporations. It takes 15 days from the date we
receive your request to establish ACH. Once ACH is in place, you may
call or write to purchase shares via ACH. Your bank account will be
debited for ACH purchases on the day of your order, and therefore
ACH purchases should not exceed the current value of your bank
account. Please make sure that the funds are available. A fee will
be applied to all returned ACH purchases. Call Customer Service at
(800) 995-7777 for a form to establish ACH services. (See also
"Automatic Investment Plan" and "Payroll Deduction".)
LINDNER FUNDS 37
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BY WIRE
You may purchase additional shares by wiring the amount of a
purchase to the Trust's domestic custodian, Firstar Bank, N.A. Prior
to sending a wire, call the Customer Service Department at
(800) 995-7777. The wire must be received by 4:00 p.m., Eastern Time
to receive that business day's closing price. Your bank may charge a
fee to wire funds. For purchases under $1,000, we will deduct any
fee from the money wired.
BY TELEPHONE
If you elect to establish telephone privileges with the Trust on
your Share Purchase Application, you may buy additional shares, in
an amount not to exceed the current balance in your account, by
calling the Trust at (800) 995-7777. Payment must be received no
later than five business days after the date on which the purchase
was made. If payment is not received within the time required, the
order will be subject to cancellation and you will be responsible
for any loss incurred.
The Trust will employ reasonable procedures to confirm that
instructions communicated by telephone are genuine. So long as we
follow these procedures, Lindner Management and the Trust will not
be liable for losses, costs, or expenses for acting upon your
telephone instructions, and Lindner Management will have authority,
as agent, to redeem shares in your account to cover any such loss.
As a result of this policy, you will bear the risk of any loss
unless we have failed to follow these procedures.
ADDITIONAL INFORMATION ABOUT INVESTMENTS IN THE FUNDS
Once you have mailed, telephoned or otherwise transmitted investment
instructions to the Trust, they may not be modified or canceled. The
Trust cannot accept investments specifying a certain price or date
and will not honor such requests.
The Transfer Agent will send you a confirmation after each
transaction affecting your account. Dividend payments and
reinvestments are shown on your quarterly consolidated statement.
You should bring any discrepancies to the Transfer Agent's attention
within 30 days of receipt. The Transfer Agent will provide a listing
of your account history, upon receipt of a written request signed by
all account owners and a $25.00 fee for each account researched.
Checks should be payable to "Lindner Asset Management." All requests
are completed on a first-come, first-served basis. Due to extreme
volume during certain times of the year, requests for account
histories may take two to three weeks for delivery.
ISSUING CERTIFICATES
Certificates will not be issued for shares unless requested in
writing. Certificates will be issued for full shares only and cannot
be issued to a third party. Certificates are not available for IRA
accounts or for shares in the Government Money Market Fund. You
cannot redeem or exchange certificated shares unless you surrender
the certificates to the Trust.
PURCHASING THROUGH THIRD PARTIES
You may purchase shares of a Fund through certain broker-dealers,
financial institutions or other service providers ("Processing
Intermediaries") who have been authorized to accept purchase and
redemption orders on behalf of the Funds.
LINDNER FUNDS 38
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When you buy shares of a Fund in this way, the Processing
Intermediary, rather than you, may be the shareholder of record. The
Trust will be deemed to have received a purchase or redemption order
when the Processing Intermediary receives the order. Broker-dealers
or other financial institutions may be liable to you for any losses
arising from their failure to timely communicate purchase orders to
the Trust.
A purchase or redemption order made through a Processing
Intermediary will be priced at a Fund's NAV next computed after the
order is received by the Processing Intermediary. Processing
Intermediaries may use procedures and impose restrictions in
addition to or different from those applicable to shareholders who
invest in a Fund directly. If you intend to invest in a Fund through
a Processing Intermediary you should read the program materials
provided by the Processing Intermediary in conjunction with this
Prospectus.
Processing Intermediaries may charge fees or other charges for the
services they provide to their customers. If you do not wish to
receive the services of a Processing Intermediary, or pay the fees
that may be charged for such services, you may want to consider
investing directly with a Fund. You may make direct purchases or
sales of Fund shares without a sales or redemption charge.
AUTOMATIC INVESTMENT PLAN
(INVESTOR SHARES ONLY)
If you own Investor Shares of the Funds, you may invest a specific
amount of money on an automatic basis by authorizing the Funds to
automatically withdraw money from your bank account on a designated
date or dates during the month. You must invest at least $50 for
each automatic investment. You may request to participate in the
automatic investment plan by writing:
Lindner Investments
P.O. Box 11208
St. Louis, Missouri 63105
You should also direct any questions or inquiries regarding the plan
to this address or by calling us as (800) 995-7777. If you want to
change or discontinue your automatic investment plan, you must
notify Lindner Investments in writing at least 15 days prior to the
next scheduled investment date.
PAYROLL DEDUCTION
(INVESTOR SHARES ONLY)
Many employers provide for payroll deduction allowing you to direct
a portion of your pay to the investment option of your choice via
ACH. Lindner Investments will accept your direct deposit in amounts
of at least $100 for the purchase of Investor Shares in any of the
Funds. If
LINDNER FUNDS 39
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you want to use payroll deduction to invest, request the proper
instructions that will be given to your employer from:
Lindner Investments
P.O. Box 11208
St. Louis, Missouri 63105
You should also direct any questions or inquiries regarding the plan
to this address or by calling us as (800) 995-7777. You should also
find out what prior notice your employer requires if you want to
change or discontinue your payroll deduction choice.
REDEMPTION OF SHARES
You may sell all or any part of your shares to a Fund for
redemption. The Trust redeems shares at the NAV per share as next
computed after either (a) a written request is received "in good
order" at the office of the Trust or (b) a telephone request is
received by a Fund by a shareholder who has established Telephone
Privileges.
The redemption price is the NAV next computed after the time when
the Fund receives your written request in good order. During the
period prior to the time shares are redeemed, dividends on such
shares accrue and are payable, and you are entitled to exercise all
other rights of beneficial ownership. Once you have requested a
redemption, you may not modify or cancel it. The value of shares on
redemption may be more or less than their original cost, depending
on the market value of the portfolio securities at the time of
redemption.
In the case of recently purchased shares, proceeds will not be
remitted until the Trust is satisfied that checks given in payment
of shares being redeemed have cleared, which may take up to 15 days.
You may redeem shares in the following ways:
BY MAIL
By mailing a written request addressed to:
Lindner Investments
P.O. Box 11208
St. Louis, MO 63105
A written redemption request is "in good order" if it:
(1) is properly endorsed by all registered shareholders in the exact
names in which the shares are registered;
(2) is accompanied by properly endorsed share certificates, if any
have been issued; and
(3) states the following:
* the name of the Fund,
* the account number,
* the exact name(s) of the shareholder(s) in which the account
is registered as shown on the latest confirmation, and
* the number of shares or dollar amount to be redeemed.
The following redemption requests must be in writing and must have
signatures guaranteed (including the signatures on any share
certificate) by a bank, trust company, savings and loan
LINDNER FUNDS 40
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<PAGE>
association, or a member of a national stock exchange (a notary
public is not an acceptable guarantor):
(1) redemptions on accounts that have requested an address change
within the preceding two months;
(2) redemptions for which the proceeds are to be sent to someone
other than the registered shareholder(s) and/or to an address other
than the address of record; or
(3) redemptions for which the proceeds are to be wired and the wire
instructions are different than those previously submitted.
The following redemptions must be in writing, but do not require a
signature guarantee (unless one of the above circumstances applies):
(1) all IRA accounts; and
(2) redemptions of shares for which certificates have been issued.
IRA account redemptions must also be accompanied by Internal Revenue
Service ("IRS") Form W-4P. IRA redemption requests not accompanied
by Form W-4P will be subject to withholding. Additional
documentation may be required from corporations, executors,
administrators, trustees, or guardians.
If you have questions about which documents or instructions are
necessary in order to redeem shares, please write, or call the Trust
at (800) 995-7777.
BY TELEPHONE
You may call the Trust at (800) 995-7777 to request that the
proceeds be mailed to the you, provided that you have previously
established Telephone Privileges with the Funds and have not
requested an address change in the preceding two months. The Trust
reserves the right to refuse telephone redemptions and may limit the
dollar amount or the number of telephone redemptions. IRA accounts
may not be redeemed by telephone.
The Trust will employ reasonable procedures to confirm that
instructions communicated by telephone are genuine. If we follow
such procedures, Lindner Management and the Trust will not be liable
for losses, costs, or expenses for acting upon your telephone
instructions or for any unauthorized telephone redemption. As a
result of this policy, you will bear the risk of any loss unless we
have failed to follow these procedures.
REDEMPTION FEE
Each Fund other than the Government Money Market Fund charges a 2%
fee if you redeem shares within 60 days after purchase. This means
that the amount payable on redemption will be reduced by 2%. This
fee is not charged on redemptions made under a systematic withdrawal
plan (see "Systematic Withdrawal Plan"). The amount of this fee
remains as an asset of the Fund which has charged it, and it does
not benefit the Adviser. This redemption fee was not charged during
the fiscal years ended June 30, 1998, 1997, 1996 or 1995, but was
reinstated by the Board of Trustees of the Trust, effective October
1, 1998. The Trust may waive this redemption fee, at the sole
discretion of the Adviser.
LINDNER FUNDS 41
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REDEMPTION THROUGH THIRD PARTIES
If you redeem shares through Processing Intermediaries, those
entities may charge a service fee. Processing Intermediaries may use
procedures and impose restrictions in addition to or different from
those applicable to shareholders who invest in a Fund directly. You
should read the program materials provided by the Processing
Intermediary. A Processing Intermediary has the responsibility of
submitting a redemption request to the Trust prior to a Fund's next
determination of NAV in order to obtain the redemption price that
would be applicable if the request had been placed directly with the
Trust. A Processing Intermediary may be liable to an investor for
any losses arising from their failure to timely deliver redemption
requests to the Trust.
DISBURSEMENT METHODS
BY MAIL
The Trust will normally disburse payment by check within five days
after receiving your request for redemption. A charge of $15 will be
deducted from your account if you request the check to be sent by
overnight delivery.
The Trust may postpone the date of payment for redeemed shares, or
the Trust's obligation to redeem shares may be suspended for:
(1) any period during which the New York Stock Exchange is closed or
trading is restricted;
(2) any period during which an emergency exists which makes it
impracticable for the Trust to sell a Fund's securities or to fairly
determine the value of a Fund's net assets; or
(3) such other periods as the SEC may order for the protection of
shareholders.
BY WIRE TRANSFER
You may obtain the proceeds of a redemption by a bank wire transfer
if you have previously established Wire Privileges with the Trust.
Under normal circumstances, your proceeds will be posted to your
bank account the business day following the date of the redemption.
If the proceeds are wired to an account at a bank that is not a
member of the Federal Reserve System, there could be a delay in
crediting the funds to the bank account. A charge of $10 per wire
will be deducted from the amount being wired.
BY AUTOMATED CLEARING HOUSE ("ACH")
You may obtain the proceeds of a redemption by ACH if you have
previously established ACH Privileges with the Trust. Under normal
circumstances, proceeds will be posted to your bank account the
evening of the second business day following the date of the
redemption. There are no fees for this service.
INVOLUNTARY REDEMPTION
In an attempt to reduce expenses, partly attributable to maintaining
small accounts, the Trust reserves the right to redeem, upon 30
days' written notice, all of your shares if your account has a NAV
of less than $3,000 ($2,000 in the case of the Asset Allocation
Fund, the Large-Cap Fund and the Government Money Market Fund). You
may prevent involuntary redemption by making additional investments
during the 30-day notice period that increase the value of your
account to this minimum amount.
LINDNER FUNDS 42
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CHECKING PRIVILEGES
(GOVERNMENT MONEY MARKET FUND ONLY)
Upon request, the Government Money Market Fund will provide each
shareholder who maintains a minimum balance of $5,000 with checks
drawn on the Government Money Market Fund that clear through Firstar
Bank, N.A., Cincinnati, Ohio. This privilege does not constitute a
banking function, and owning Government Money Market Fund shares is
not equivalent to a bank checking account. When such a check is
presented for payment, a sufficient number of whole and fractional
shares in your account in the Government Money Market Fund will be
redeemed to cover the amount of the check. Checks may only be
written for $500 or more.
If you wish to use this method of redemption you must complete and
file an authorization form which is available upon request. You
should receive an initial supply of checks within three weeks of
filing the form. If you bought the shares to be redeemed by check,
the Fund may delay sending you the proceeds only until such time as
it is reasonably assured that good payment has been collected for
the purchase of such shares, which may be up to 15 days.
The Government Money Market Fund may refuse to honor checks whenever
the right of redemption has been suspended or postponed or whenever
the account is otherwise impaired. The Fund will charge a $15
service fee when a check is presented to redeem shares of the
Government Money Market Fund in excess of the value of your account
in the Government Money Market Fund. There is no other fee for using
checks.
EXCHANGING AN INVESTMENT FROM ONE FUND TO ANOTHER
Subject to any applicable minimum initial investment requirements,
you may exchange Investor Shares of one Fund for Investor Shares of
any other Fund, and you may exchange Institutional Shares of one
Fund for Institutional Shares of any other Fund. Before exchanging
shares, you should read the current prospectus describing the shares
to be acquired. The exchange privilege is not designed to afford
shareholders a way to play short-term swings in the market. Lindner
Investments is not suitable for that purpose. The Trust reserves the
right to limit the amount and frequency of exchanges between Funds
in circumstances it deems disadvantageous to the Funds.
BY TELEPHONE
You may exchange shares by phone by calling us at (800) 995-7777 if
you have established Telephone Privileges with the Trust and the
account registrations and options (for example, automatic
reinvestment of dividends) are identical.
BY MAIL
You may direct the Trust in writing to exchange shares. If the
shares are owned by two or more persons, the request should be
signed by each person. All signatures should be exactly as the name
appears in the registration. Send your directions to Lindner
Investments, P.O. Box 11208, St. Louis, MO 63105.
ADDITIONAL INFORMATION ABOUT SHARE EXCHANGES
* If the shares being surrendered for exchange are represented by a
certificate, you must return the certificate to Lindner Management
before the conversion can be made.
LINDNER FUNDS 43
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* Once you have made an exchange request by telephone or mail, it is
irrevocable and you may not modify or cancel it.
* The value of the shares surrendered and the value of the shares
acquired are the NAVs of such shares next computed after receipt of
an exchange order.
* Shares may not be exchanged unless you have furnished the Trust
with the correct tax identification number and the certification
required by the Internal Revenue Code and Regulations. See
"Withholding Certification."
* An exchange of shares is, for federal income tax purposes, a sale
of the shares, on which you may realize a taxable gain or loss.
* If the request is made by a corporation, partnership, trust,
fiduciary, agent or unincorporated association, Lindner Management
will require evidence satisfactory to it of the authority of the
individual signing the request.
* Under most circumstances, a bank, broker or benefit plan
administrator that owns Institutional Shares of a Fund for the
benefit of participants in a tax qualified retirement plan (such as
a 401(k) Plan) may not permit participants in such plan to exchange
Institutional Shares of a Fund for Investor Shares of that Fund or
any other Fund.
SYSTEMATIC WITHDRAWAL PLAN
(INVESTOR SHARES ONLY)
A systematic withdrawal plan is available to you if you hold
Investor Shares of a Fund whose total account value is at least
$15,000 and you wish to withdraw fixed amounts of money from that
Fund on a systematic basis. Withdrawals must be in amounts of $100
or more and may be made monthly or quarterly, at an annual rate not
exceeding 40% of the value of your Investor Shares at the inception
of your systematic withdrawal plan. If you participate in a
systematic withdrawal plan, you may still make additional
redemptions whenever you wish.
Under a systematic withdrawal plan, the Fund redeems Investor Shares
as of the close of the first business day following the twentieth
day of each month in which a withdrawal is made. Each redemption of
Shares will result in a gain or loss that you must report on your
income tax return. Establishing a systematic withdrawal account
constitutes an election by you to reinvest into the Fund all income
dividends and capital gains distributions payable on your account.
To participate in the systematic withdrawal plan you must sign a
form we will provide upon request and deposit any stock certificates
subjected to the plan. You may request to participate in the
systematic withdrawal plan and ask questions about it by writing to:
Lindner Investments
P.O. Box 11208
St. Louis, Missouri 63105
You may terminate the systematic withdrawal plan at any time by
written notice to the Funds.
LINDNER FUNDS 44
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INDIVIDUAL RETIREMENT ACCOUNTS ("IRAS")
(INVESTOR SHARES ONLY)
IRAs are available to employed (including self-employed) persons and
their non-employed spouses. All contributions to an IRA Plan are
invested in Investor Shares of the Fund you select. You will be
charged an annual administrative fee of $10 per IRA account, which
you may pay separately by check.
Contributions to an IRA must be post-marked no later than the due
date of the tax return (without extensions) for the contribution
year for which the contribution is being made. You must request
withdrawals from an IRA in writing and include IRS Form W-4P with
your request. IRA redemption requests not accompanied by Form W-4P
will be subject to income tax withholding.
Firstar Bank, N.A., serves as Custodian for IRAs. The Custodian's
fee and other information about IRAs are disclosed in documents
including a Disclosure Statement that you must obtain from the Funds
before investing in an IRA. You should consult your tax advisor
regarding the appropriateness of investing in an IRA. Address
written requests for applications to establish an IRA to:
Lindner Investments
P.O. Box 11208
St. Louis, Missouri 63105
DIVIDENDS, DISTRIBUTIONS AND TAXES
PAYMENT OF DIVIDENDS AND DISTRIBUTIONS
DEFINITIONS
* Record Date: the date the Fund identifies its "shareholders of
record" (shareholders entitled to receive the fund's dividend and/or
capital gains distribution).
* Ex-Dividend Date: the date the dividend is deducted from the
Fund's NAV. Also, the date dividends and/or capital gains are
posted. This is normally the day after the Record Date.
* Payment Date (Payable Date): the date dividends and/or capital
gains distributions are paid to shareholders.
The Large-Cap Fund, the Small-Cap Fund and the Market Neutral Fund
declare annual dividends from net investment income each December.
The Asset Allocation Fund and the Utility Fund distribute
substantially all of their net investment income in quarterly
dividends generally declared in March, June, September and December,
within 15 days after the respective record dates. All of these Funds
distribute net realized capital gains, if any, in December.
Dividends paid by each Class of these Funds are calculated at the
same time and in the same manner, except that the expenses
attributable solely to either the Investor Shares or to the
Institutional Shares will be borne solely by that Class.
Institutional Shares receive lower per share dividends than Investor
Shares because of the higher expenses borne by the Institutional
Shares. See "Fund Expenses" and "Distribution and Service Plan".
For the Government Money Market Fund, at the end of each business
day that the New York Stock Exchange and the Federal Reserve Banks
are open, the Fund's net investment income is
LINDNER FUNDS 45
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declared as a daily dividend to shareholders. Shareholders receive
dividends in additional shares of the Government Money Market Fund
unless they elect to receive cash. Reinvestment or payment of
dividends is done monthly at the NAV of the Government Money Market
Fund on the date paid. If you request cash payment, checks are
mailed within five business days after the last day of each month.
The Funds may declare additional dividends from net investment
income and from net realized capital gains in December. If a Fund
declares a dividend and/or a capital gain distribution in October,
November, or December and it is made payable during January of the
following year, such payment is considered taxable income to the
shareholder on December 31 of the year in which the dividend or
distribution was declared.
Each Fund automatically reinvests dividends and capital gain
distributions in Fund shares at the NAV determined on the day
following the record date for such dividends or distributions,
unless you provide written notice by the record date indicating your
intention to receive such dividend or distribution in cash.
EFFECT OF DIVIDENDS AND DISTRIBUTIONS ON NAV
Any dividends or capital gains distributions paid shortly after you
buy shares in a Fund will have the effect of reducing the per share
NAV of your shares by the amount of the dividends or distributions.
All or a portion of such dividends or distributions, although in
effect a return of capital, are subject to taxes, which may be at
ordinary income tax rates.
FEDERAL TAXATION OF DIVIDENDS AND DISTRIBUTIONS
Each Fund is not liable for federal income taxes to the extent it
distributes its taxable income. Additionally, each Fund intends to
distribute substantially all capital gains and ordinary income and
thus avoid imposition of excise taxes.
You are generally liable for federal income taxes on the income
dividends and capital gains distributions of each Fund (whether or
not reinvested in the Fund).
Distributions are taxable as ordinary income to the extent derived
from a Fund's investment income. Distributions of net capital gains
may be taxable at different rates depending upon how long the Fund
has held the assets. Distributions of capital gains are taxable to
you based on how long a Fund has held a security, not on how long
you have owned the Fund shares.
DIVIDENDS RECEIVED DEDUCTION
Each Fund will furnish, upon request, a confirmation to corporate
shareholders reflecting the amount of dividends which do not qualify
for the 70% dividends received deduction. None of the Government
Money Market Fund's net investment income is expected to be derived
from dividends, therefore, no part of any distribution from that
Fund will be eligible for the dividends received deduction.
OTHER TAX CONSEQUENCES
In addition to the federal income tax consequences described above,
there may be other federal, state or local tax considerations
applicable to the circumstances of a particular investor. You are
urged to consult your tax advisor about the effect of your
investment in a Fund on your tax
LINDNER FUNDS 46
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<PAGE>
situation. You should also review with your tax adviser the effect
of investments by the Government Money Market Fund in repurchase
agreements; several states treat the income received by a mutual
fund from repurchase agreements as income from sources other than
securities of the United States Government or its agencies or
instrumentalities, and such income may be subject to state income or
intangibles taxes.
The foregoing discussion of tax consequences is based on tax laws
and regulations in effect on the date of this Prospectus, which are
subject to change by legislative or administrative action.
DISTRIBUTION AND SERVICE PLAN
(INSTITUTIONAL SHARES ONLY)
For its Institutional Class shares only, each Fund has a
Distribution and Service Plan ("Distribution Plan") pursuant to Rule
12b-1 under the 1940 Act. The Distribution Plan provides that
Institutional Shares of each Fund may pay distribution and other
shareholder service related expenses of up to 0.25% each year of the
average net assets allocated to Institutional Shares.
Because these fees are paid out of the Funds' assets on an ongoing
basis, over time these fees will increase the cost of your
investment and may cost you more than paying other types of sales
charges. Payments pursuant to the Distribution Plan may be made only
to reimburse expenses incurred during a rolling 12-month period,
subject to the annual limitation.
LINDNER FUNDS 47
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You can find additional information about the Lindner Funds in its
Annual and Semi-Annual Reports to Shareholders and in the Statement
of Additional Information ("SAI"). The Annual and Semi-
Annual Reports to Shareholders include financial statements,
detailed performance information, portfolio holdings, management's
discussion of Fund performance, market conditions and investment
strategies and, in the Annual Report only, the auditor's report. The
SAI contains more detailed information on all aspects of the Funds
and is incorporated by reference in (legally considered to be part
of) this Prospectus. To request a free copy of the current Annual or
Semi-Annual Report to Shareholders or the current SAI, or to
obtain other information about a Fund, write or call:
LINDNER INVESTMENTS
7711 Carondelet Avenue, Suite 700
St. Louis, Missouri 63105
Phone:(800) 995-7777
Fax: (314) 727-9306
Internet Website:
http://www.lindnerfunds.com
You can visit the SEC's Internet Web site (http://www.sec.gov) to
view the SAI, material incorporated by reference, and other
information. You can also obtain copies by visiting the SEC's Public
Reference Room in Washington DC. Call 1-800-SEC-0330 for information
on the operation of the Public Reference Room.
PROSPECTUS DATED
JULY 1, 1999
[Lindner Logo]
Investor Shares Ticker Symbols
- --------------- --------------
LINDNER ASSET
ALLOCATION FUND: LDDVX
LINDNER LARGE-CAP
FUND: LDNRX
LINDNER SMALL-CAP
FUND: LDRSX
LINDNER UTILITY FUND: LDUTX
LINDNER MARKET
NEUTRAL FUND: LDNBX
Institutional Shares do not yet have ticker symbols
Investment Company Act File No. 811-7932
INVESTMENT ADVISER AND TRANSFER AGENT:
Lindner Asset Management, Inc.
CUSTODIANS:
Firstar Bank, N.A.
The Chase Manhattan Bank
COUNSEL:
Dykema Gossett PLLC
INDEPENDENT AUDITORS:
Deloitte & Touche LLP
