LINDNER INVESTMENTS, 497AD, 2000-04-25

LINDNER INVESTMENTS
497AD, 2000-04-25

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L I N D N E R F U N D S

NEWSLETTER

[Logo]LINDNER
FUNDS WWW.LINDNERFUNDS.COM

H I G H L I G H T S

LIPPER DATA SHOWS LINDNER UTILITY FUND AS
#1 FUND AMONG UTILITY MUTUAL FUNDS FOR '99
- -----------------------------------------------------------
3

VALUEVIEW
- -----------------------------------------------------------
COO Mark Finn discusses "Thoughts on the Century Closed 4
and the New Century Dawning..."

PERFORMANCE CHART
- -----------------------------------------------------------
6

LINDNER ASSET MANAGEMENT NAMES JOHN ELDER
ACTING EXECUTIVE VICE PRESIDENT IN ST. LOUIS
- -----------------------------------------------------------
7

HAVE A QUESTION? MEET THE LINDNER FUNDS' ANSWER TEAM
- -----------------------------------------------------------
8

PROFILE: LINDNER ASSET ALLOCATION FUND --
IDEAL FOR CONSERVATIVE-MINDED INVESTORS
- -----------------------------------------------------------
10

CAPITAL GAINS AND YOUR TAXES
- -----------------------------------------------------------
12

SHAREOWNERS' CORNER
- -----------------------------------------------------------
12

MUTUAL FUNDS: A 20TH CENTURY PHENOMENON
- -----------------------------------------------------------
13

LINDNER FUNDS DESCRIPTIONS
- -----------------------------------------------------------
15

- ----------------------------------------------------------------------

If you would like to receive periodic updates regarding our funds,
please E-MAIL US AT [email protected]. You may also fax your
--------------------------
request to our marketing department at FAX (314) 727-9306.

For operational assistance, to order applications or request fund
statistics, please call our customer service line at 1-800-995-7777.

- ----------------------------------------------------------------------

[LOGO]LINDNER FUNDS

--------------------------
Winter 2000

NEWSLETTER
A Value Investment Tradition

[Photo of Powerlines]
LIPPER DATA SHOWS
LINDNER UTILITY FUND AS
#1 FUND AMONG UTILITY
MUTUAL FUNDS FOR '99

Data and analysis provided by the authoritative LIPPER INC.<F*> SHOWS
THE LINDNER UTILITY FUND IS THE #1 UTILITY MUTUAL FUND FOR 1999.<F**>
The Fund's rate of return was 60.46% for 1999, compared very favorably
to such broad-market indexes of utility equities as represented by the
S&P 500 Utilities Index (the Fund's benchmark), which ended the year at
- -8.81%; and, the Dow-Jones Utilities Index, which ended the year at
- -5.67% (see comparisons chart <F**>).

The Lindner Utility Fund seeks current income through investments in
securities of domestic and foreign public utility companies, with
capital appreciation as a secondary goal. The fund has adopted a broad
definition of "utilities" and includes companies in the portfolio that
provide basic services to customers on a regular basis, as well as
traditional, universal-service, regulated or semi-regulated electric and
telephone companies. This fund may be appropriate for investors who seek
current income and diversification through companies engaged in all
types of utility services.

The Fund invests substantially all of its assets in common stocks or
securities that are convertible to common stocks. The Fund may also use
preferred stocks or bonds, and Rule 144A securities. At least 65% of the
Utility Fund assets will be invested in common or preferred utility
stocks. At year-end 1999, larger holdings included such equities as
Omnipoint, Nextel, AT&T, Enron, and RCN Corp. (Continued on page 14.)

VALUEVIEW

BY MARK T. FINN, VICE CHAIRMAN AND
CHIEF OPERATING OFFICER, LINDNER ASSET MANAGEMENT, INC.

[PHOTO]

LOOKING BACK / LOOKING AHEAD

THOUGHTS ON THE CENTURY CLOSED
AND THE NEW CENTURY DAWNING...

The books are now closed on the 20th Century -- the most dramatic period
of change in the history of humankind. Future historians will judge the
last 100 years in the context of advances in such human endeavors as
government, science, technology, medicine, education, finance,
communications, agriculture, and such everyday pursuits as retailing,
sports, entertainment, and leisure activities.

During the century just ended, technological advances dominated the
news. The years 1900-2000 witnessed the introduction of such advances in
the theoretical and physical sciences and the application of technology
as: broadcast radio; television; telephone; fax machines; household
appliances; integrated electronic circuitry; computers; automobiles and
trucks; nuclear power; aircraft; spacecraft; the jet engine;
electricity; plastics and other synthetic materials; exotic new metals;
and a host of others that made our lives more comfortable -- and our
nation more productive.

The 1900s were the time when age-old public health menaces were
conquered -- the treatment of drinking water since the turn of the
century saved literally millions of lives. And, in the last half of the
20th Century, powerful drug therapies and antibiotics were introduced to
deal with many human diseases and conditions. The use of new penicillin
drugs during World War II was the start of a pharmaceutical revolution
to deal with threats to human health that continues today -- and into
our new century.

Agriculture changed dramatically at the start of the last century. Where
two out of three Americans lived on farms or in rural areas and fed a
nation of 120 million people in 1900, by 1999 only four persons out of
one hundred were farmers, feeding not only this nation of 265 million,
but the peoples of other nations as well. Technology and scientific
advances served the farmers well; technology has driven farm
productivity throughout the century, and as families flocked to the
cities, farming became more productive.

In addition to technological marvels, we also lived through great social
turbulence. The second great story of the 20th Century is the resilience
of the human spirit. Early in the century, with technology, everything
seemed possible. Americans were buoyed with confidence in the 1920s,
after helping the "Old World" powers decide the outcome of World War I.
Then, without warning, the "Roaring Twenties" ended dramatically, and
economic disaster followed the October 1929 stock market crash.
Uncontrolled and irrational financial speculation obviously had a price.

When the Great Depression hit in the 1930s, one out of four Americans
was out of work. Millions qualified for home relief. In other lands,
fascism took hold, leading to World War II. President Franklin D.
Roosevelt rallied the nation by appealing to the unique qualities of the
American Spirit, especially confidence in the future. In his
inauguration speech, he told us we had nothing to fear but fear itself.
FDR's plan for the re-construction of the nation was designed to create
both economic and social betterment.

Included in the reforms were new protections for individual investors
and the means of encouraging new investment, based on building
confidence in banks, and publicly-traded securities. This was the
foundation of the 1933 legislation that created the Securities &
Exchange Commission. In asking the Congress to pass the securities
legislation, he said: What we seek is a return to a clearer
understanding of the ancient truth that those who manage banks,
corporations and other agencies for

PAGE 4 LINDNER FUNDS NEWSLETTER

handling or using other people's money are trustees
acting for others.

Thus began the modern era of investing that has resulted in our nation
becoming the largest economy on the globe. Economic recovery would take
all of the decade of the 'Thirties, but the lessons learned in the dark
days of depression would last the rest of the century -- and there would
be no turning back from the progress made possible by modern capitalism.
There would also be broader participation in the wealth being created by
capitalism -- investing opportunities became positively democratic in nature.

In the days just prior to WW II, Time publisher Henry Luce declared this
the American Century and called on the American People to take hope in
the future and assume their global responsibilities (February 1941). In
the December 1999 issue, US News & World Report declared "The American
People" as the "man/woman of the century."

I have another nominee: THE AMERICAN INVESTOR.

The dramatic changes our nation experienced over the past 100 years
would not have been possible without the individual investor, and the
funds he or she made available to entrepreneurs. Whether your capital is
invested directly in common stocks or bonds, or you participate in the
capital markets through investing in mutual funds, or your employer
pension fund, the capital you put to work has helped to build our nation
- -- and will continue to do so in the new century.

Thanks to the protection and assurances of Federal and state
regulations, financial innovations made possible in this century have
included the broad-based corporate pension fund, Individual Retirement
Accounts, money market savings accounts, insured savings accounts, and,
of course, the miracle of the mutual fund. Individual investors are
putting their capital to work through a formally organized investment
company that pools and manages theirs and other people's individual
investments. All investors equally own the enterprise, and share equally
in the profits -- hence, the "mutual" in mutual funds. These investment
vehicles helped individuals to participate in the nation's wealth-
building process.

As millions of Americans entered the "middle classes," they put extra
money aside for the future -- to buy a home, college tuition, start a
business, and plan for comfortable retirement. Mutual funds met their
need to select a specific level of market risk most comfortable for
them, and then carefully balance risk with the opportunity to increase
their capital base -- their individual wealth -- or to generate income,
say, for retirement years.

The first Lindner Fund was created in 1954, (it is today's Large-Cap
Fund). This was a time when America's economic horizon was dramatically
expanding; the 1950s. As Americans prospered in the following decades,
they continued to put money aside; this capital became the largest pool
of investment available to corporations for expansion, and for municipal
bond-issuing agencies to raise capital for infrastructure.

Over the years the Lindner Family of Mutual Funds also expanded to meet
the changing needs of individual investors. We added the Asset
Allocation Fund, Market Neutral Fund, Small Cap Fund, Utilities Fund,
and as the century ended, the Lindner Opportunities Fund. Each was
designed to meet the specific needs of investors.

And what about the new 21st Century? Of course, it is virtually
impossible to accurately foretell the future. Experts have heralded the
signs of unleashed human energy at the start of each new century, and
point to the advent of electricity, automobiles and motion pictures as
examples as we moved from the late-1800s to the early 1900s. In the
century just ended more scientific knowledge was gained than in the
5,000 preceding years combined. But what do we make of the fact that
now, every five years, our entire scientific knowledge base will once
again double?

All of the applications of physical science and applied technologies
cited for the 20th Century -- radio, television, computers, space
exploration, miracle medicines -- are in fact the foundation for 21st
Century advances. This much is known: The miracles of the 20th Century
would not have come to market to improve our lives were it not for the
individual American Investor, and especially for mutual fund investors.
As a Lindner Fund shareowner I congratulate you for putting your money
to work to create a more productive economy; to help apply scientific
discoveries to practical, everyday applications (think about the miracle
of the microwave in your kitchen!); to help establish new businesses;
and to make it possible for existing businesses to expand and employ
millions of our fellow citizens. You have built the present economy of
the United States of America!

In the century now beginning, we at Lindner Funds pledge to you our best
efforts to continue the tradition of helping you participate in the
opportunities presented in the financial marketplace, while carefully
balancing risk and reward. As for the new century, my hope for all is:
May all the world's people enjoy Peace, Prosperity, Progress, and
Individual Opportunity. The future is what we will make it, and what we
make it will be an outcome of where we invest our personal capital to
finance business. Here's to a Happy New Year -- and new century -- for
the American Investor!

<PAGE>
/S/ Mark T. Finn

Mark T. Finn
Vice Chairman & Chief Operating Officer,
Lindner Asset Management, Inc.

[FN]
Note: <F*> All performance data quoted represents past performance and
is not predictive of future performance. The investment return and
principal value of an investment in the Funds will fluctuate; an
investor's shares, when redeemed, may be worth more or less than their
original cost.

LINDNER FUNDS NEWSLETTER PAGE 5

<TABLE>
PERFORMANCE CHART -- 1999

- ----------------------------------------------------------------------------------------------------
<CAPTION>
January 1 to January 1 to March 31 to
Fund Name March 31, 1999 December 31, 1999 December 31, 1999
- ----------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Lindner Large-Cap Fund -12.38% 11.32% 27.06%
(Inception 5/24/73)
- ----------------------------------------------------------------------------------------------------
Lindner Asset Allocation Fund -4.34% 10.00% 15.00%
(Inception 6/22/76)
- ----------------------------------------------------------------------------------------------------
Lindner Utility Fund 6.51% 60.46% 50.66%
(Inception 8/30/93)
- ----------------------------------------------------------------------------------------------------
Lindner Small-Cap Fund -9.12% 18.41% 30.29%
(Inception 1/24/94)
- ----------------------------------------------------------------------------------------------------
Lindner Market Neutral Fund 1.06% 12.87% 11.69%
(Inception 2/11/94)
====================================================================================================
<S> <C>
Lindner Opportunity Fund October 12 to December 31, 1999 -- 18.20%
(Inception 10/11/99)
====================================================================================================
<S> <C> <C> <C>
Dow Jones Industrial Averages<F*> 7.03% 27.21% 18.85%
- ----------------------------------------------------------------------------------------------------
S&P 500 Index<F*> 4.98% 21.04% 15.30%
- ----------------------------------------------------------------------------------------------------
Russell 2000 Index<F*> -5.43% 21.36% 28.33%
- ----------------------------------------------------------------------------------------------------
<FN>
<F*> With dividend reinvested
</TABLE>

The following represents the Lindner Fund's Average Annual Total Return
for 1, 5 and 10-year periods ending December 31, 1999 or since the
fund's inception:

<TABLE>
- ----------------------------------------------------------------------------------------------------
<CAPTION>
Fund Name 1-Year Return 5-Year Return 10-Year Return
or Since Inception
- ----------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Lindner Large-Cap Fund 11.32% 8.13% 8.06%
(Inception 5/24/73)
- ----------------------------------------------------------------------------------------------------
Lindner Asset Allocation Fund 10.00% 10.29% 10.09%
(Inception 6/22/76)
- ----------------------------------------------------------------------------------------------------
Lindner Utility Fund 60.46% 21.88% 17.81%<F*>
(Inception 8/30/93)
- ----------------------------------------------------------------------------------------------------
Lindner Small-Cap Fund 18.41% 17.61% 14.27%<F*>
(Inception 1/24/94)
- ----------------------------------------------------------------------------------------------------
Lindner Market Neutral Fund 12.87% 0.14% 1.31%<F*>
(Inception 2/11/94)
====================================================================================================
<S> <C>
Lindner Opportunity Fund October 12 to December 31, 1999 -- 18.20%
(Inception 10/11/99)
- ----------------------------------------------------------------------------------------------------
<FN>
<F*>Since inception
</TABLE>

Returns for the Fund are net of all charges and fees for Investor Class
shares. All performance is historical, assumes reinvestment of all
dividends and capital gains, and is not predictive of future results.
Investment return and principal value will fluctuate, so redemption
value may be more or less than when purchased. For more complete
information, including charges and expenses, please call or write for a
free prospectus. Read it carefully before you invest.

PAGE 6 LINDNER FUNDS NEWSLETTER

LINDNER ASSET MANAGEMENT NAMES JOHN ELDER
ACTING EXECUTIVE VICE PRESIDENT IN ST. LOUIS

In December, Lindner Asset Management Chairman Doug Valassis announced
the appointment of John Elder as Acting Executive Vice President. Mr.
Elder joins Lindner from the Signature Financial Group, where he was
Vice President-Financial Administration, serving a number of mutual fund
clients.

[PHOTO]

JOHN ELDER
ACTING EXECUTIVE VICE PRESIDENT/OPERATIONS

Mr. Elder is based in the Lindner Asset Management headquarters in St.
Louis, and will oversee the company's administrative, operations and
financial functions.

Chairman Valassis noted Mr. Elder's extensive financial services
industry experience as an important asset for the Lindner management
team. "We are pleased that John has joined our management team in St.
Louis. He has an extensive background in the mutual fund industry, and
in financial services, and brings a wealth of experience, knowledge and
know-how to Lindner. This appointment is an important step in the
continued strengthening of the Lindner Asset Management team."

Mr. Elder's duties at Signature included financial reporting, regulatory
compliance, SEC reporting, IRS reporting, overseeing compliance for
client companies, and liaison with legal counsel. The firm, which is
based in Boston, provides clients (large mutual fund clients) with
consulting and management services. John Elder was with Signature for
the past four years.

Mr. Elder is a Certified Public Accountant, began his career with Price
Waterhouse, and served the firm's financial services clients from
offices in Philadelphia, New York City and Hartford for a decade. He
then moved to the Phoenix Family of Mutual Funds (the management company
was a subsidiary of the Phoenix Home Life Mutual Insurance Company) in
Hartford, Connecticut, for a 10-year period. He served as Treasurer of
the Phoenix mutual funds -- the portfolio size was more than $10 billion
- -- with 25 funds in the group.

John Elder was graduated from Coe College in Cedar Rapids, Iowa and
received his Master's in Business Administration from Washington
University (St. Louis).

JOHN ELDER OBSERVATIONS ON
MUTUAL FUND MANAGEMENT

Acting Executive Vice President John Elder shared his observations on
mutual funds based on his extensive experience over the past 25 years.

ELDER ON CHANGES: "I have seen dramatic changes in the management of
mutual funds over the last quarter century. The funds are more widely
used by the public as primary investment vehicles for family savings,
retirement savings, trust funds for others, and for participating in
the stock market. Overall, the investing public is better educated
about mutual funds and their appropriate place in an individual's
portfolio."

ON CHANGES IN FUND MANAGEMENT: "In my view, today's fund managers are
much more knowledgeable, more informed, and skilled at using
sophisticated investment techniques and practices. Twenty five years
ago, fund managers typically picked certain stocks without the benefit
of the many of the analytical tools which are at their disposal today."

TODAY'S ENVIRONMENT: "Today, portfolio managers operate in a much more
open and vigilant environment. The media, financial analysts, pension
markets, investing institutions, and other third parties are much more
aggressive in making mutual fund managers justify their investment decisions.
Organizations such as Lipper and Value Line quickly identify the gunslingers
who take on too much risk and who have an inconsistent investment style. The
added visibility and accountability of the investment manager has been to the
benefit of the individual investor."

ON LINDNER ASSET MANAGEMENT: "This is a great opportunity for me, to be
involved in an organization which has turned the corner in its
investment process and is building a strong management team. Lindner
Funds has the ability to grow substantially over the next few years. I
have known (Vice Chairman) Mark Finn professionally through his
association with a large mutual fund client at my former employer, and
have tremendous respect for his investment management abilities. I
believe that the investing public will become much more aware of Mark's
skills through their monitoring of Lindner Funds performance and that
will attract new investors to the Lindner Family of Funds. This is an
exciting time for the Lindner Funds."

LINDNER FUNDS NEWSLETTER PAGE 7

<PAGE>

HAVE A QUESTION?
MEET THE LINDNER FUNDS' ANSWER TEAM

[PHOTO]

Lindner Funds' Outstanding Customer Service team in St. Louis

At Lindner Asset Management, customer service is an attitude and a
department. At offices in Clayton, Missouri (a suburb of St. Louis
located just west of down town), eight account representatives are on
duty every weekday from 8 a.m. to 5 p.m. CST ready, willing and able to
help Lindner shareowners in any way they can.

"The customer service department here is a one-stop shop." explains
Cathy Setraycic, Lindner Funds' Shareowner Services Manager. "Unlike at
some other financial institutions, when you call us, we don't transfer
you to someone else. We pull together the information you need and do
whatever is necessary to answer your question and to meet your needs.
Individual shareowners are very important to all of us at Lindner."

A VARIETY OF TASKS
Account representatives have a varied workday. They answer e-mail
received through Lindner's Web site and they follow up with individuals
who have written to the company requesting information. Answering the
phone, however, is their primary activity. They assist shareowners with
routine matters, such as verifying account information, inputting
address or registration changes, executing purchases or sales of shares,
and setting up automatic purchase programs. Account reps can help
shareowners complete various tax information or administrative forms,
and in utilizing the recently introduced Web-based customer service
functions on our internet site."Our goal is always to provide the caller
with a little bit more than what they contacted us for. We aren't
financial advisors, but we can provide information that will help people
make decisions," Setraycic says.

TRAINING IS KEY
Being a jack-of-all-trades representative requires extensive training.
Jennifer Latham, Assistant Customer Service Manager, heads up the
training effort, which begins with a two-week, intensive, one-on-one
program. New hires must complete directed independent study of the
mutual fund industry and Lindner's products. They also spend a lot of
time listening to incoming calls to observe how callers' questions are
answered.

"One of the things we look for when interviewing candidates for this job
is a willingness to continue learning," Setraycic explains. "It's
important to have a positive attitude and enjoy talking to people, but
we always need to keep up with new information. That's the only way we
can really provide quality service."

Following the official training period, new representatives are paired
with a more senior person who serves as a mentor. "When you're new, it
really helps to have a more experienced person you can go to for an
answer,"

LINDNER FUNDS NEWSLETTER PAGE 8

"We work as a team
in responding to questions,
or to provide the follow up
needed for advisors,
to help the professional in addressing
the needs of their clients."

-- Brian Maloney

[PHOTO]

BRIAN MALONEY, MARKETING REPRESENTATIVE
Brian works closely with the Customer Service staff in meeting the needs
of investment advisors.

Setraycic says. "It helps our people to learn more quickly, but more
important, it means we can speed up the response time to the caller."

REACHING OUT
The customer service department is gearing up to become more proactive
in the new year by contacting shareowners from time to time to provide
information or ask if they need assistance. "Sometimes changes take
place within our funds or we want to verify information we have,"
Setraycic explains. "So, we'll be calling shareowners directly to
discuss these issues."

January introduces the tax season and this is a time for tying up year-end
and fourth-quarter administrative matters. It's no surprise then, that it's
also the department's busiest month. "Because we provide such a broad range
of service, our average telephone call takes 7-20 minutes," Setraycic notes.
"When we experience a large volume of calls, shareowners may experience longer
response times than they're used to. We ask that shareowners be patient with
us -- we will get to them as quickly as possible."

Setraycic advises shareowners to take advantage of Lindner's alternate
service options. Through the toll-free automated customer service
telephone system (dial 1-800- 995-7777), shareowners can check their
account balances, dividend payments and other account information. The
company's Web site (www.lindnerfunds.com) also allows shareowners to
review transaction history.

"We always feel that personal contact is best, but during this busiest
month shareowners may find it advantageous to access information through
these other methods," Setraycic says. "One of the really great things
about being such a small, close-knit department is that we get to know
many of our shareowners. Interacting with them regularly and helping
them is what really makes this job fun. We love to hear from our
shareowners, and to help them with their questions."

Brian Maloney, Lindner Marketing Representative, is responsible for
liaison with the Registered Advisor Community. He works closely with
Cathy Setraycic and the Customer Service Department in meeting the needs
of individual advisors and their clients. "We work as a team in
responding to questions, or to provide the follow up needed for
advisors, to help the professional in addressing the needs of their
clients," notes Brain. "I regularly provide the staff with up-to-date
information such as industry trends and data to help them in answering
queries. And, if an advisor needs information or follow up, Customer
Service will hand off the call to me. We recently worked together to
install new software that serves the needs of both marketing and
Customer Service, another example of our close cooperation and
teamwork."

"Our goal is always to
provide the caller with a little bit more
than what they contacted us for.
We aren't financial advisors,
but we can provide information that
will help people make decisions."

-- Cathy Setraycic

[PHOTO]

CATHY SETRAYCIC, MANAGER
Cathy oversees the busy Customer Service Department.

LINDNER FUNDS NEWSLETTER PAGE 9

PROFILE:
LINDNER ASSET ALLOCATION FUND --
IDEAL FOR CONSERVATIVE-MINDED INVESTORS

PRESENTING A CLOSE-UP OF THE LINDNER ASSET ALLOCATION FUND:

[Photo of ticket]
The Lindner Asset Allocation Fund (formerly the Lindner Dividend Fund)
was launched in June 1976, as the classic bear market of 1973-75 was
beginning its recovery. The primary objective of this Fund is to provide
its shareowners with current income; the Fund may be appropriate for
investors seeking current income while trying to achieve capital
appreciation as a secondary investment objective. The managers of the
Asset Allocation Fund use a blend of equity and fixed-income
investments, with a target mix of approximately 60% equity and 40% fixed
income assets.

Investments include common stocks; convertible and non-convertible
preferred stocks; corporate bonds; and debt securities issued or
guaranteed by the US government. In recent months, as the current
economic expansion became a little long in the tooth -- it is now the
longest peacetime economic expansion period in the modern history of the
US -- the Committee has steadily moved the Fund toward investment in
higher quality, lower risk securities.

For example, since spring 1999, the fixed-income portion of the Fund has
been increasingly invested primarily in higher quality, shorter term
bonds. The advisor has been avoiding longer duration fixed-income
investments that may offer higher return, but are riskier in an
environment where we find interest rates on the rise.

In terms of the Fund's equity investments, these are now primarily in
well-known companies demonstrating sound management, and with attractive
share prices relative to the competition. (At year-end 1999, these
investments included Microsoft, Wal-Mart, General Electric, Omnipoint,
Nortel Networks, Procter & Gamble, Lucent, and Eastman Kodak, as
examples.) These shares are typically referred to as "value stocks"
because they represent opportunities for appreciation as today's share
prices could be viewed by market experts as a potential "value" buy for
investors.

In both types of investments, equities and fixed-income, fund managers
have moved investments toward higher quality and lower risk; this has
tended to lower the actual cash yield for the fixed-income investments
(see accompanying performance and dividend charts).

Speaking for the advisor, Vice Chairman Mark Finn shared these
observations with shareowners:

We strongly believe that in light of current macro-economic and market
valuation conditions, the move to quality is the right trade off for the
Fund as the year 2000 begins. This Fund is now well positioned for a
variety of long-term investment vehicles such as Individual Retirement
Accounts, private pension plans and individual or family trusts.

LINDNER FUNDS NEWSLETTER PAGE 10

We are always careful to balance risk and opportunity, and to exercise
caution and prudence in both up and down market conditions. This Fund is
intended for conservative investors and we believe these are times
calling for defensive investing strategies for our shareowners. The
economic cycle is now in its late stages.

The benchmarks used for comparing performance against peers and
reliable, broad market indicators for the Fund managers are the Standard
& Poor's 500 Stock Index (for equities) and the Lehman Brothers
Intermediate Corporate Bond Aggregate (for fixed-income investments).
Our objective in managing your investment in the Lindner Asset
Allocation Fund is to continue to produce current income with a yield in
excess of that which is earned on the S&P 500 Index or on bank savings
accounts, while also being mindful of opportunities for capital
appreciation as they arise.

In any of the market environments over the past 60 years we have seen
breaks in investing patterns. Styles change, investments move in and out
of favor. Recently, the "dot-coms" have been exceedingly attractive for
some investors, for example.

In equity markets, growth and value will over time see-saw in
popularity. Fixed-income prices (valuations) will increase and decrease
over time. There will be opportunities in large-cap stocks, and then in
small-cap companies. These patterns of change must be carefully
monitored and continuing research is critical. We are now watching for
signs of inflation. There are tradeoffs for any investment, typically
risk vs. opportunity. In the case of the Lindner Asset Allocation Fund,
we will typically tilt toward stronger risk management, and toward
quality rather than high-yield.

WHAT IS AHEAD FOR THE ASSET
ALLOCATION FUND IN 2000?

While predicting the future is impossible, planning for the future is
fundamental to what mutual fund managers do. So, what is planned for the
Lindner Asset Allocation Fund in 2000? We asked Mark Finn for his
comments:

* We will continue efforts to avoid low-quality,
potentially higher-risk investments -- no matter how attractive their
advertised "high-yield" returns may appear.

* We will continue to seek out reasonable return
on investments while striving to protect shareowners'
investments.

* We will continue to seek out shares in well-known,
successful companies, with the ability to generate income from dividend
payments, and in many cases, with opportunity for capital appreciation.

* When value returns to favor with investors, there should be many
more investing opportunities among under-valued companies for the Fund.

Today, we see Asian and European companies growing stronger, and
presenting more competition for US firms. Their demand for capital is
increasing on a global basis. Could the dollar weaken over time? Will
inflationary forces increase? These are important questions for fund
managers. As we strive to protect capital, and preserve options for
future investing opportunities, actual yield will move downward.

- ------------------------------------------------------------------------

Our view is that short-term Treasuries, which have comparatively lower
yield but are a very reliable investment, are appropriate right now.
With shorter maturities, we will have capital ready to invest in
emerging opportunities. This approach is designed for the bear market.
To use a nautical metaphor, we could be navigating in choppy seas. As
the seas rise, we can slow the boat and move through the waves at a
reduced speed. As we adjust the speed, we'll get safely to shore; just a
little bit slower, perhaps than other boats taking the waves head-on.
But our trip will be safer and more comfortable. Our management style
for this Fund will tend to be more defensive in 2000.

If you look at the equities market for 1999, you will see that despite
resounding growth overall in some of the broad-market indexes, many
share prices were actually down for the year, including those of some
very well-known, profitable companies with solid earnings records. The
bond markets were similarly trending downward for the year. There is
growing uncertainty in the market as to future directions. In these
conditions, fund managers must have a healthy respect for market
valuations, especially over the long-term.

Important note: Please refer to the Prospectus for the Lindner Asset
Allocation Fund, or refer to the Annual Report for more information. You
may wish to consult with a financial planner for more information about
the Fund and its appropriate use in your personal investment portfolio.
Symbol: LDDVX.

LINDNER FUNDS NEWSLETTER PAGE 11

SHAREOWNERS'
CORNER

These are a few of the most Frequently Asked Questions as reported by
the Lindner Funds Customer Service staff.

Q: I REQUESTED A RECHARACTERIZATION AND MADE A CONTRIBUTION TO MY
TRADITIONAL IRA ACCOUNT LAST YEAR. HOW WILL LINDNER FUNDS REPORT THESE
TRANSACTIONS TO THE IRS?

A: The recharacterization distribution will be reported in IRS Form
1099-R (Code R). All recharacterization contributions within an account
will be combined on one Form 5498. All other contributions will be
reported on a separate Form 5498.

Q: I WOULD LIKE TO MAKE A 1999 CONTRIBUTION TO MY RETIREMENT ACCOUNT.
HOW DO I DESIGNATE THAT ON THE REMITTANCE SLIP?

A: To make your 2000-year contribution, mark current year. To make your
1999 contribution, mark prior year. Note: 1999 contributions can be made
up to April 15, 2000.

[Photo of Check]

- --------------------------------
If IRA check one:

------------------------------
/ / Rollover

/ / Current Yr. Contribution

/ / Prior Yr. Contribution

/ / Sep Current Year

/ / SEP Prior Year

/ / IRA Fee Payment
------------------------------
- --------------------------------

Q: EACH YEAR I NEED ADDITIONAL EARNINGS DATA TO COMPLETE MY STATE TAX
RETURN. HOW CAN I OBTAIN THAT INFORMATION?

A: Information is available on our website www.lindnerfunds.com.

CAPITAL GAINS AND YOUR TAXES

by Kenneth E. Puzder, CPA
Vice President and Financial Operations Principal

[PHOTO]

As you begin preparing to face the tax season, you may be considering
the effect of capital gains taxes.

What can create a capital gain for a taxpayer? For one thing, buying
shares of publicly-traded securities (such as a mutual fund) at one
price and selling them later at a higher price. As with so many things
in life, the timing of these transactions can be very important.

Generally, a capital gain realized through the sale of an asset owned
for more than one year is considered a long-term gain and is taxed at a
20% maximum rate for individuals who are in the 28% (and higher) tax
brackets. For individuals in the 15% tax bracket, a 10% rate applies.
For tax years beginning after December 31, 2000, gains from the sale of
assets held for at least five years will be taxed at an 18% rate (8% for
taxpayers in the 15% bracket). The lower capital gains rate will also
apply to trusts and estates. In addition, the lower rate will apply when
the taxpayer is determining income tax under the Alternative Minimum
Tax.

This compares to the present tax treatment for gains realized on
investments held for less than one year: short-term gains are taxed at
your ordinary income tax rate. So, if you are considering selling an
asset (even if it is now under-performing), you should consult with your
tax advisor. It may pay to hold on to it and consider the applicability
of long-term gains treatment.

For the past quarter century, Individual Retirement Accounts have
offered investors a very practical capital gains tax strategy. The
payment of taxes on gains realized through certain transactions
involving IRA assets (held within the IRA) is deferred until you begin
withdrawing money at retirement age. So, if you're considering an
investment that involves periodic transactions -- regular deposits on
some scheduled basis -- you might elect to participate in a Lindner
Mutual Fund through an IRA account.

<PAGE>
There are a variety of IRA plans now available to you, each with its own
criteria for tax deductibility, etc. As always, it's best to seek the
guidance of your attorney, accountant or tax advisor in deciding which
type of investment is appropriate for you. Lindner's customer service
representatives are always happy to explain the various IRA options we
offer.

TAX DATES TO REMEMBER
(always consult your tax advisor)

APRIL 17, 2000 * deadline for filing 1999 income tax return or
for requesting a filing extension.

* the first payment of 2000 estimated tax is
due.

* deadline for opening or depositing funds into
your 1999 IRA account.

JUNE 15, 2000 * second 2000 estimated tax payment is due.

AUGUST 16, 2000 * if you requested a filing extension back in
April, your 1999 tax return is due today.

* if extenuating circumstances have prevented
you from meeting this extended deadline,
it's possible to apply for an additional
extension.

SEPTEMBER 15, 2000 * third 2000 estimated tax payment is due.

OCTOBER 16, 2000 * Last day for filing your 1999 income tax
return, if you received additional extension
of time to file.

LINDNER FUNDS NEWSLETTER PAGE 12

MUTUAL FUNDS: A 20TH CENTURY PHENOMENON

Henry Ford's factory-produced, low-priced Model T automobile gave
Americans freedom to roam, and the 19th Amendment gave women the right
to vote. But, perhaps no event in the 20th Century did more to
democratize the nation than the creation of mutual funds. Now, in buying
individual shares of an investment company that held a portfolio of
securities, the average American could have a real stake in the
country's economy. Even the smallest investors could enjoy a serious
slice of the American pie.

The concept of pooling individual monies to create an investment vehicle
was often used in 19th century Europe by trade guilds and other labor-
related groups. It was not until this century, however, that the concept
appeared in the United States. Here, Lindner Asset Management offers
some highlights in the history of mutual funds, a uniquely 20th century
phenomenon.

1924 A few closed-end funds with assets totaling less than $10 million
had been created. Edward G. Leffler creates the Massachusetts Investors
Trust, the world's first true, open-end mutual fund. Within one year,
the Trust has 200 shareholders and $392,000 in assets (about $4 million
in 1999 dollars).

1928 The first no-load fund is established by Scudder, Stevens & Clark
of Boston; shareowners will pay no "entry fees" for their investment.

1929 By now there are 21 mutual funds established with approximately
$134 million in assets (more than $1.3 billion in 1999 dollars). But,
the Great Depression set off by the stock market crash in October in
this year spells t-r-o-u-b-l-e ahead for every sector of the nation's
economy, including investing.

1933 As part of the broad bundle of investor protection measures
adopted by the Congress, The Securities Act of 1933 requires that
prospectuses used in selling mutual fund shares to investors must
clearly disclose "risks" that may be involved.

1940 Unsavory practices in the mutual fund industry prompt Congress to
take action. The Investment Company Act imposes numerous controls, but
Congress fails to enact a provision that would have capped individual
funds at $150 million. Opponents argued successfully that no fund would
ever get that large!

1951 The number of mutual fund shareowners reaches a new record -- one
million. There are now more than 100 funds on the market. This decade
sees the rise of industry-specific funds, such as the Atomic Development
Fund, The Television-Electronics Fund and the Missiles-Rockets-Jets &
Automation Fund.

1960 As the decade begins there are 155 funds with $15.8 billion in
assets.

1967 Funds return a record 62% this year, but it's later discovered
that some funds actually employed "creative" accounting techniques.
Still, it was a great year for investors.

1971 The first money market portfolio, The Reserve Fund, arrives on the
scene.

1975 401(k) plans, retirement savings programs through which millions
of Americans purchase mutual fund shares, are born. The landmark
legislation that created "ERISA," the Employee Retirement Income
Security Act, will pay huge dividends for individual investors and for
the economy in the years ahead. Individual Retirement Accounts (IRA),
another popular mutual fund investment vehicle, are made possible by the
Act. (Continued on page 15.)

<PAGE>
WHERE IS THE MARKET HEADED IN 2000?

Lindner's views on the markets as the new year begins.

* We believe in the year 2000 the majority of investors will
continue to experience the unusual volatility that both equity and
fixed-income markets have exhibited in recent months.

* Inflation will continue to be carefully monitored by Federal
Reserve officials -- any signs of increase in inflationary forces
will be matched by appropriate action.

* Economists will carefully take the pulse of this very long
recovery period, looking for any signs of weakness. Leading indicators
will be closely watched. Economists will continue to practice "...On
the other hand..." commentary, some voicing cautious optimism and
others, pessimism, as the longest economic expansion in modern times
gets even longer and future directions of the market remain difficult to
predict.

* New sectors of the economy will come to favor; the good news, we
believe, is that traditional investing styles could return to favor in
this new year. Value investing could return to favor (again) in 2000;
that is the nature of investing cycles, a primary characteristic of
equity markets.

LINDNER FUNDS NEWSLETTER PAGE 13

LIPPER DATA SHOWS LINDNER UTILITY FUND AS
#1 FUND AMONG UTILITY MUTUAL FUNDS FOR '99 (Continued from page 3.)

COMPARISON / BENCHMARK:
The comparative index is the S&P 500 Utilities Index, which is a
capitalization-weighted index of all utility company stocks that are
traded on the New York Stock Exchange, and is designed to measure the
performance of the Utility Sector of the S&P 500 Index.

[Photo of Tower]

You can find this index as well as the listing for the Fund in the pages
of the Wall Street Journal. (The Fund symbol is LDUTX.)

FUND INVESTMENTS:
Industry investments at mid-year included sectors such as tele-
communications; utilities; telecommunications equipment; natural gas
pipelines; oil & gas exploration and production; energy; electrical
generation; oilfield services; and, cable television equipment and
services.

COMMENTING ON THE 1999 PERFORMANCE:
Vice Chairman Mark T. Finn noted in a recent media interview: "We've
carried a relative underweight to the electric utility sector, had
exposure to telecommunications for the full year, and we've picked good
stocks. The traditional view of the electric utility industry, that of a
yield vehicle with little appeal, is going to change in the next few
years. Our view is that this industry will be quite exciting and marked
by a number of takeover and management changes, so that good management
will pay off. This will make it more important that the investment
management committee picks the right stocks. Every sector has its day,
and we believe that this Fund will be back in an overweight in electric
utilities sometime within the next 24 months."

CAUTIONARY NOTES:
Please note that single-sector investments -- such as utilities -- are
subject to certain risks, such as limited diversification,
when compared to other types of market investments, interest rate risk
and economic risks. Past performance is not a guarantee. This is a "no-
load fund" -- that is, there are no sales charges attached to your
minimum purchase or subsequent purchases.

* Lipper, Inc., together with its affiliate companies, is the leading
provider of data and analysis on the investment company business. Data
is provided to major institutions, money managers and investment
advisors. With data going back to 1959, Lipper, Inc. currently tracks
performance of approximately 32,000 funds worldwide with assets in
excess of US $6 trillion. Lipper data is carried in more than 100
newspapers and other media, including The New York Times, USA Today,
CNBC, and The Wall Street Journal.

** Comparisons Chart follows

<TABLE>
- ----------------------------------------------------------------------------------------------
<CAPTION>
1 year 5 years 8/30/93(inception of
ended 12/31/99 ended 12/31/99 the fund) to 12/31/99

- ----------------------------------------------------------------------------------------------

<S> <C> <C> <C>
Lipper Utility Fund Category Rank 1 out of 100 12 out of 65 N/A

- ----------------------------------------------------------------------------------------------

Lindner Utility Fund 60.46% 21.88%<F1> 17.81%<F1>

- ----------------------------------------------------------------------------------------------

S&P 500 Utilities Index -8.81% 13.81%<F1> 8.39%<F1>

- ----------------------------------------------------------------------------------------------

Dow Jones Utilities Index -5.67% 14.73%<F1> 7.61%<F1>

- ----------------------------------------------------------------------------------------------

<FN>
<F1>Average annual total return including reinvestment of dividends and
capital gain distributions.
</TABLE>

All performance is historical, assumes reinvestment of all dividends and
capital gains, and is not predictive of future results. Investment
return and principal value will fluctuate; an investor's shares, when
redeemed, may be worth more or less than their original cost.

LINDNER FUNDS NEWSLETTER PAGE 14

THE LINDNER FUNDS

LINDNER OPPORTUNITIES FUND <F1> (Introduced October 1999)
This new fund's main objective is long-term capital growth. This fund
will focus its investments primarily in common stocks of U.S. companies
and securities of U.S. companies that are convertible into common
stocks. Well-known and established companies as well as smaller less
discovered companies will be considered. The companies are selected for
their growth prospects relative to their valuations, without regard to
market capitalization size.

LINDNER SMALL-CAP FUND <F2>
The objective of this fund is long-term capital appreciation through
investments in common stocks or convertible securities of companies with
market capitalization of $178 million to $1.3 billion (9/99). Income is
a secondary objective.

LINDNER LARGE-CAP FUND
This diversified fund seeks long-term capital appreciation through
investments in large-cap common stocks or securities convertible into
common stocks. At least 65% of the fund's assets in common stocks are
invested in companies with market capitalization in the range of the
Russell 1000 Index. Income is a secondary objective.

LINDNER UTILITY FUND <F3>
This fund seeks current income through investments in securities of
domestic and foreign public utility companies, with capital appreciation
as a secondary goal. Utilities are broadly defined to include companies
that provide basic services to customers on a regular basis.

LINDNER ASSET ALLOCATION FUND
This fund's primary objective is to generate current income; capital
appreciation is a secondary goal. Investments include common stocks,
preferred stocks and corporate bonds, and debt securities issued or
guaranteed by the U.S. government or its agencies.

LINDNER MARKET-NEUTRAL FUND <F4>
The 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.

LINDNER GOVERNMENT MONEY MARKET FUND
This very low-risk fund invests in short-term debt securities guaranteed
by the U.S. government or its agencies. Investors can expect a moderate
level of current income, with liquidity and stability of capital. The
fund is not insured or guaranteed by the F.D.I.C. or any other
government agency. Although the fund seeks to preserve a net asset value
of $1.00, there can be no assurance of this.

<F1>Investing in small companies can involve increased volatility, less
liquidity, and less publicly available information.

<F2>Investors should note that this Fund may invest all or a portion of
its assets in short-term debt securities issued by the U.S. government
and by U.S. corporations. If the Small-Cap Fund takes a temporary,
short-term "defensive" position, it may not achieve its investment
objective. Investing in small companies can involve increased
volatility, less liquidity, and less publicly available information.

<F3>Single-sector investments -- such as utilities -- are subject to
certain risks, such as limited diversification, when compared to other
types of market investments, interest rate risk and economic risks.

<F4>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. Investors should note that this Fund may invest all or a
portion of its assets in short-term debt securities issued by the U.S.
government and by U.S. corporations. If this Fund takes a temporary,
short-term "defensive" position, it may not achieve its investment
objective. Although a fund's potential gain in limited to the amount of
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.

MUTUAL FUNDS:
A 20TH CENTURY
PHENOMENON

(Continued from page 13.)

1988 High-yielding "junk bond" funds are all the rage, but the demise
of major player Michael Milken and the firm of Drexel Burnham, act to
reduce their popularity.

1990 In the home stretch for the 20th century, there are 2,917 mutual
funds with $982 billion in assets.

1999 As the 20th Century draws to a close, the decade of the 1990's
unbelievable economic recovery, the focus of baby boomers on retirement
savings, and a plethora of mutual fund choices spur the industry. The
Investment Company Institute estimates that some 80 million Americans own
more than three-quarters of the $6 trillion-plus assets in today's mutual
funds.

- -------------------------------------------

[LOGO}

THE LINDNER FUNDS
NEWSLETTER

Published quarterly by
Lindner Asset Management, Inc.
for the shareowners of the
Lindner Family of Mutual Funds.

DOUG T. VALASSIS
Chairman and
Chief Executive Officer

MARK T. FINN
Vice Chairman and
Chief Operating Officer

ERIC E. RYBACK
President

JOHN ELDER
Acting Executive Vice President

HANK BOERNER
Editor of the Newsletter

Offices:
7711 Carondelet Avenue -- Suite 700
St. Louis, Missouri 63105

Telephone: 314-727-5305
FAX: 314-727-9306

Toll-free Telephone: 1-800-995-7777
Email: [email protected]
Web site: www.lindnerfunds.com
- -------------------------------------------

LINDNER FUNDS NEWSLETTER PAGE 15

[LOGO]LINDNER
FUNDS

7711 Carondelet Avenue -- Suite 700
St. Louis, Missouri 63105

Telephone: 314-727-5305
FAX: 314-727-9306

Toll-free Telephone: 1-800-995-7777
Email: customer [email protected]
Web site: www.lindnerfunds.com

- ---------------------------------------------------

IN 2000...

ARE YOU ROLLING OVER A 401K-PLAN?

ROLLING OVER AN IRA?

TRANSFERRING JOBS?

WILL YOU RECEIVE THE PROCEEDS
FROM YOUR PENSION PLANS?

Contact a Lindner Funds Shareowner Service
Representative at 1-800-995-7777 and we can assist
you with the transfer process.

*FOR ASSISTANCE REGARDING SPECIFIC TAX CONSEQUENCES
CONSULT YOUR FINANCIAL ADVISOR.

- ---------------------------------------------------