<PAGE>
CONTENTS
<TABLE>
<S> <C>
LINDNER LARGE-CAP FUND
Letter from the Fund Managers............................. 5
Schedule of Investments................................... 7
LINDNER ASSET ALLOCATION FUND
Letter from the Fund Managers............................. 9
Schedule of Investments................................... 11
LINDNER UTILITY FUND
Letter from the Fund Managers............................. 13
Schedule of Investments................................... 14
LINDNER SMALL-CAP FUND
Letter from the Fund Managers............................. 16
Schedule of Investments................................... 17
LINDNER OPPORTUNITIES FUND
Letter from the Fund Managers............................. 19
Schedule of Investments................................... 20
LINDNER MARKET NEUTRAL FUND
Letter from the Fund Managers............................. 21
Schedule of Investments................................... 22
LINDNER GOVERNMENT MONEY MARKET FUND
Letter from the Vice Chairman and Chief Operating
Officer................................................. 26
Schedule of Investments................................... 27
Statements of Assets and Liabilities........................ 28
Statements of Operations.................................... 30
Statements of Changes in Net Assets......................... 32
Notes to Financial Statements............................... 34
Financial Highlights........................................ 40
Independent Auditors' Report................................ 47
</TABLE>
<PAGE>
MARKET OVERVIEW
FISCAL YEAR 2000:
GREAT HIGHS AND LOWS FOR INVESTORS IN GENERAL,
AND A CONTINUED TURNAROUND FOR LINDNER SHAREOWNERS
Lindner Asset Management, Inc. continued on its mission
of reinvigorating the fund complex during the fiscal
year ended June 30, 2000. For investors, the 12-month
period was sometimes a roller coaster ride, with major
indexes reaching breathtaking all-time highs, and then
plunging perilously toward the bottom. Mutual funds
shareowners', typically a long-view breed of investor,
no doubt were checking the NAV for their holdings more
regularly! People will be talking about their
experiences during the last half of 1999 and the first
six months of 2000 for some time to come.
Here are some of the key points of the last 12 months:
* The US economy remained strong, with growth of
4.8% annualized in the Gross Domestic Product for
the first quarter of 2000 and then a soaring 5.2%
annualized for second quarter 2000. Business
investment quickly replaced consumer spending as
the driving economic force in 2000 (consumer
expenditures had made up two-thirds of growth, a
growing concern to the monetary policymakers).
* Inflation remained under control. This is
considered remarkable by some observers, given the
almost "zero" unemployment present in 1999 and
2000, and the still-robust consumer market, with
demand continuing strong for many goods and
services.
* Even so, the Federal Reserve, in attempting to
keep inflation in check and avoid an overheated
economy, raised interest rates six times (for a
total of 1.75 percentage points) in the fiscal
year. A Fed publication scholar noted . . .
"uncertainty is pervasive in the policy
environment the Federal Reserve faces as it
strives to promote economic stability and low
inflation . . . making monetary policy isn't
easy." Amen!
* The recently devastated economies of Southeast
Asia and elsewhere continued to improve, creating
investment opportunities and renewed markets for
US goods and services abroad. News from our
overseas trading partners, while not always good,
continued to improve.
* Certain well-known high technology sector stocks
soared to new heights, and then experienced
precipitous drops in share prices. Some have even
declined enough to receive our consideration as
value stocks.
* Large-cap stocks muddled along for much of the
period (for example, the Dow Jones Industrial
Average was down 8.44%, January-June 2000), and
then in late spring industrial companies returned
to favor with institutional and individual
investors. (Many of these companies had been
ignominiously labeled "old economy companies"
until their share prices began appreciating in
2000.) We will continue to closely monitor
corporate earnings in the months ahead for
continued strength.
* Small-cap and mid-cap stocks have been extremely
volatile; everyone was cheering as NASDAQ climbed
to its all time high (reaching 5,048 on March 10,
2000), then, as investors began moving out of NASDAQ-
traded stocks, and particularly high-tech "flyers,"
the index plummeted to 3,164 on May 23, and closed
at 3,966 on June 30.
* Most of the major indexes were down from their
record highs of 1999-2000, reflecting a general
weakness that occurred in 2000 in various sectors
of the market.
* Cash continued to move to mutual funds throughout
the first half of 2000. According to Morningstar,
today some 30 million of us have invested more
than $1.2 trillion in mutual funds.
1
<PAGE>
<PAGE>
There were certain reversals, distortions, and
anomalies in the stock market that created challenges
of various kinds (and intensities) in the 2000 fiscal
year for both investors and for us as professional
fund managers.
For example it was a very small group of high
technology (or "New Economy") stocks that drove the
NASDAQ Index to its historic high; then, in the spring
2000 sell-off, these stocks helped to lead the dive in
prices downward, as the Index lost 2,000 points in
just 10 weeks.
Style rotation was at times difficult to detect, and
quantify. Was this correction or that one a change
from momentum investing to value or perhaps from
growth investing to value? At times we appeared to
have several styles operating simultaneously; perhaps
that is the look of the future, as the equity markets
continue to broaden and many new domestic and
international equities are traded on various
exchanges.
SECOND HALF, 1999--TWO QUARTERS FOR THE RECORD BOOKS
There were distinct periods of activity during the
fiscal year that comprised clear cycles in the market.
As the books were closed on 1999, US stocks had capped
five years of gains that seemed unstoppable. On
December 31, 1999, the Dow Jones Industrial Average
stood at a record, 11,497 with a 27.21% gain for the
calendar year. (The DJIA gained 36.87% in 1995; 28.89%
in 1996; 24.94% in 1997; 18.15% in 1998.) Similarly,
the Standard & Poor's Index rose to a record 1,469, a
21.04% gain for the year. The stunner was the NASDAQ
composite, closing at 4,069, an 86.12% gain for 1999!
Still, it was not an easy ride to the top for most
shares (nor for investors); the NYSE reported that
while prices for 902 listed stocks rose in 1999, 1,454
actually declined in value. NASDAQ reported similar
results: 1,999 stocks advanced and 1,880 declined over
the year. Some of the year-end price increases were
reportedly due to nervous investors taking defensive
positions by buying put options. (Remember, the Y2K
"problem" was hotly discussed throughout the closing
months of 1999. Some experts predicted chaos worldwide
when the new year began.)
Then as the year ended, the New York Times writers
were reminding us that the current "boom" actually
began in August 1982. And, that "the 1987 crash which
seemed epochal at the time, is remembered today as a
great buying opportunity." We would certainly recall
those words after the major correction of April 2000.
One of the major themes of news coverage during 1999
was the divergence between value stocks and growth
stocks. For the most part, value stocks moved sideways
during 1999, with little gain, while above-average
growth companies enjoyed significant popularity with
investors. Internet stocks pushed beyond traditional
boundaries, ignoring traditional price earnings ratios
and driving prices to stratospheric and perhaps
unrealistic heights . . . if at least temporarily.
YEAR 2000--FIRST HALF
Value stocks gained in popularity during the first
half of 2000, but at this writing it is still
difficult to clearly chart where value trends may be
headed for the second half of 2000 (which is the first
half of Lindner's current fiscal year). It is
challenging as always to detect which companies
represent the greatest value for investors.
The most dramatic event in the past year had to be the
April 14, 2000 correction, when the market appeared to
be poised to slide over the abyss. The Dow Jones
Industrial Average fell 617 points, or 5.66%; the
NASDAQ Composite was down 355 points, or 9.67% at the
end of the trading day; the S&P 500 was off by 84
points, or 5.83%. The question on everyone's mind: Was
the bull market over? Well, not quite, it turns out.
The indexes are still off their highs, but
considerably improved since mid-April.
Against this background of dramatic highs and lows,
and tectonic shifts, let's look at the performance of
the Lindner Funds complex in the fiscal year.
2
<PAGE>
<PAGE>
LINDNER FUNDS FISCAL YEAR 2000 PERFORMANCE
In the challenging period described above (July 1,
1999 through June 30, 2000), these were the total
return results for the Lindner family of mutual funds:
* Lindner Utility Fund - One year return, 32.49%
* Lindner Small-Cap Fund - One year return, 16.26%
* Lindner Large-Cap Fund - One year return, 8.61%
* Lindner Asset Allocation Fund - One year return,
-5.48%
* Lindner Market Neutral Fund - One year return,
19.26%
* Lindner Government Money Market Fund - One year
return, 5.26%
The improvement in fund performance is the result of
the reinvigoration of the traditional value framework
of the Lindner complex and the imposition of new
investment disciplines more in tune with today's
economic and financial environment. This was the first
full fiscal year of performance under the new
management team (which was appointed in April 1999).
The strengthening of the selection process for
portfolio investments involved adopting a number of
sophisticated models, which are helpful in making the
stock selection process more reliable.
In December 1999 we offered this comment in a letter
to professional advisors on the changes taking place
at Lindner Funds--and in the broad financial markets:
There is a new sense of excitement in the air at
Lindner Funds. The activities we began in 1999 to
reinvigorate the value framework is beginning to
pay off. The efforts of our research team and
investment managers have resulted in models that
are responsive to the evolution of institutional
and individual investor thinking and choices.
Over the years, with value as our primary style of
investment in a market that always seemed
impressed with stock fundamentals, our stock
selection process seemed appropriate if not
invulnerable. If the share prices in the
undervalued companies selected for our portfolios
began to increase, our shareowners benefited.
It is not that simple anymore. Radical changes in
the capital markets during the 1990s resulted in
major differences in determining what is/is not
likely to be in favor. Throughout the changes,
Lindner remained faithful to the value style of
investments, and with significant recent
adjustments to our investment process, we have
been affecting a turnaround for the funds.
We continue to see corporate earnings as being
important in the valuation of stocks. The old reliable
"fundamentals" also remain critical in evaluating
investments. As the fiscal year ended in June 1999,
high technology, "Net" and "Dot-com" stocks, and Far
East companies were on top. One year later, healthcare
and biotechnology were on top (up 37.6% for
January-June 2000); real estate was close behind
(+14.5%); natural resources were in third place
(+12.3%).
Seven months later, we are seeing that value
opportunities are more abundant--thanks to the
sell-off in many shares--and that some of our
long-term holdings are appreciating as their sectors
come into favor with investors. We noted with interest
as we watched the market gyrations of recent months
and recalled an old expression no one really ever
calls the top or bottom of any cycle with great
accuracy.
On that note, at a recent investment conference a
speaker noted that the stock market is still capable
of over-shooting its long-run value and then returning
to inherent value with a crash. This would create a
boom and bust scenario that would be frightening to
investors.
The portfolio management team at Lindner Funds was
significantly strengthened during this fiscal year,
with the appointment of experienced co-managers, and
this team is striving to reduce shareowner anxiety as
this "long-in-the-tooth" stock market continues its
gyrations and impossible-to-predict sudden movements.
We
3
<PAGE>
<PAGE>
believe that our analytical tools, including
sophisticated risk models, will contribute to improved
performance over the coming fiscal year and that
shareowners will be satisfied with the results of
their investment in the Lindner Funds.
HEARTENING RECOGNITION
It is always heartening when independent third party
experts recognize the accomplishments of an
organization; this must be especially true for Lindner
Funds shareowners' who have been through several
tumultuous years. It is particularly gratifying to us
that this recognition comes at a time when bad news
seemed to dominate. As fiscal year 2000 closed, there
were these comments published by respected financial
media:
* The Wall Street Journal assigned an "A" rating to
Lindner Utility Fund, Lindner Market Neutral Fund
and Lindner Small-Cap Fund, placing them in the
top 20% of their respective categories for the
12-month period ended June 30, 2000 (the funds'
fiscal year and the subject of this annual
report). Lindner Large-Cap Fund and Lindner Asset
Allocation Fund were ranked "B," placing them in
the top 40% of funds in their categories<F1>.
* Lindner Utility Fund was ranked in the #1 position
out of 93 funds in the utility fund category by
mutual fund industry expert Lipper, Inc., with a
32.49% gain for the 12-month period<F2>. (The
fund's benchmark, the Dow Jones Utility Index,
posted a 1.02% gain for the same period; the
Standard & Poor's Utility Index return was 3.94%.
As of July 31, 2000, the fund is down 0.37%
year-to-date and the Dow Jones Utility Index and
Standard and Poor's Utility Index were up 17.42%
and 22.92% respectively).
* In the Barron's issue of July 17, 2000, "Fund of
Information" columnist Michael Santoli offered
this observation: "Lindner Market Neutral is
staging a solid turnaround with its fundamental/
qualitative bull-and-bear style . . ." Performance
for the Fund has been very impressive with no down
quarters and a total return of 19.3% over the year
ended June 30, 2000.
We invite you to read through the narrative provided
for each fund in the complex elsewhere in this Annual
Report.
In closing, on behalf of the management team of
Lindner Asset Management, Inc., we thank you for the
opportunity to serve you, and for your long-term trust
in the funds.
/s/ Mark T. Finn
Mark T. Finn
Vice Chairman, Chief Operating Officer
Chief Investment Officer,
Lindner Asset Management, Inc.
July 31, 2000
<F1>Wall Street Journal proprietary ratings reflect
historical risk-adjusted performance as of June
30, 2000. The ratings are subject to change
monthly. Wall Street Journal ratings are
calculated from the Funds' one, three and five
year average annual returns in comparison with
the returns of funds with the same investment
objective adjusted for any fees which would have
been charged to shareholders. The top 20% of
funds is awarded an "A", and the next 20% a "B",
progressing through "C", "D", and finally "E"
for the bottom 20%. Other rating services use
different criteria and time periods, therefore,
ratings from other services may differ.
<PAGE>
<TABLE>
<CAPTION>
LINDNER FUND CATEGORY ONE YEAR THREE YEAR FIVE YEAR
<S> <C> <C> <C> <C>
Asset Allocation Equity Income B E E
Large-Cap Mid-Cap Value B E E
Market Neutral Specialty Equity A B B
Utility Utility A C A
Small-Cap Small-Cap Value A A B
</TABLE>
<F2>Lipper Analytical, Inc. is a leading provider of
data and analysis on the investment company
business. The Fund ranked number 1 out of 93
funds and #7 out of 65 funds based on total
returns for the one and five year periods ended
June 30, 2000.
4
<PAGE>
<PAGE>
PERFORMANCE SUMMARY
The Lindner Large-Cap Fund Investor Shares had a total return of
8.61% for the fiscal year ended June 30, 2000. The fund's benchmark,
the Russell 1000 Index, returned 9.14% over the same period. The
performance of the S&P 500 Index and Dow Jones Industrial Average
for the fiscal year was 7.25% and -3.31%, respectively.
The Lindner Large-Cap Fund made a successful transition from a
small-cap and mid-cap portfolio with little liquidity to a fund
comprised of larger cap stocks with much more liquidity and growth
potential. All of the smaller cap stocks and less liquid stocks have
now been moved out of the portfolio. This process was difficult and
was accomplished with planning and care in order to avoid an adverse
effect on shareholder value which could have been caused by
"dumping" of the thinly-traded issues. We are pleased to report to
shareowners that we have been successful in this effort during the
fiscal year.
During the just-concluded fiscal year--July 1999 through June
2000--we have witnessed some of the highest volatility in the market
in years. The Lindner Large-Cap Fund has been able to take advantage
of this volatility to move into stocks that we like at a much better
level (lower prices). The volatility has helped to bring "value"
back to some of the formerly high-flying technology issues.
The key for the Lindner Large-Cap Fund was to recognize the "value"
in the technology sector, and to systematically take profits along
the way, so that the fund did not become overweighted in any one
stock or sector and thus maintained appropriate diversification.
As for specific investments: Oracle Corporation (ORCL) was the
fund's largest holding and experienced a dramatic gain of 353%
during the fiscal year. CYTYC Corporation (CYTC) was the largest
percentage gainer in the portfolio, at 447%. Of course, not all
holdings were such winners. Microsoft (MSFT) and AT&T (T) had large
setbacks during the last quarter of the fiscal year, and for the
year were -11% and -42% respectively.
(continued on next page)
LINDNER LARGE-CAP FUND
Ticker Symbol: LDNRX
PERFORMANCE GRAPH
--------------------------------------------------------------------
Comparison of change in value of $10,000 invested in the Russell
1000 Index and the Lindner Large-Cap Fund--Investor Shares from June
30, 1990 to June 30, 2000 and Institutional Shares from July 12,
1996 to June 30, 2000:
[Large-Cap Fund graph]
PAST PERFORMANCE IS NOT PREDICTIVE OF FUTURE PERFORMANCE
<TABLE>
AVERAGE ANNUAL TOTAL RETURN
<CAPTION>
For Investor Shares For Institutional Shares
For Periods Ended June 30, 2000 For Periods Ended June 30, 2000
<S> <C> <C> <C>
1 Year 8.61% 1 Year 8.55%
5 Year 5.23% Inception 1.90%
10 Year 7.67%
</TABLE>
5
<PAGE>
Fort James Corporation (FJ) was another stock that performed poorly,
losing 33% of its value. However, we believe that these stocks will
bounce back. Companies with good management teams, recognized brands
and products do tend to rebound over the long haul. Fort James, for
example, reached an agreement in July 2000, to be acquired by
Georgia Pacific for consideration valued at $37.17 per share (G-P
agreed to a premium of 65% for the shares). Parametric Technology
(PMTC) was a newly added stock to the Large-Cap Fund. We see better
things for Parametric Technology (PMTC) in the year ahead and have
already seen a substantial gain in its value.
We believe that there is still substantial growth opportunity in the
Technology and Telecommunication sectors. The sector weightings of
the portfolio are balanced to allow the Lindner Large-Cap Fund to
purchase value stocks in all sectors. The companies owned by the
Large-Cap Fund are looked at and tracked daily for signals of
overvaluation. The volatility in the year 2000 market place will not
disappear, and will most likely increase in the months ahead. The
key to investing success is to not panic during these periods, and
to make smart and fiscally sound calls.
The investment philosophy for the whole Lindner family of mutual
funds has been reviewed to enable managers to make more effective
adjustments to the changing nature of capital markets, shifting
closer towards modern financial and economic principles. The
classical Lindner value approach has been constantly updated to
enable portfolio managers to evaluate "value" in relative terms
rather than in absolute terms.
Under the new approach, the value of a firm is evaluated by looking
at the firm's current cash flows coupled with the expected future
cash flows. Price, in fact, is dependent upon and is a result of
people's expectations. Mispricings are considered in the relative
frame; the value created by a company's expected future cash flows
should be in line with similar companies.
The increasing volatility of the markets requires stricter risk
management practices on the money management side. The key tool to
sound risk management is diversification. Cross-sectional
diversification is applied by broadening the investment universe
(i.e. increasing the number of stocks in a portfolio), and adjusting
the holding weights accordingly in order to avoid taking
fundamental-, sector-, or company-specific bets. On the other hand,
time diversification should also be applied by making proper asset
allocation decisions to reduce the dependence of the portfolios on
specific asset types.
Liquidity is also a major consideration for the fund holdings in
that, if our opinion on a security changes, the market for the
security should be broad enough so that the price of the security
will be relatively unaffected by our decision to sell that security.
/s/ Mark T. Finn /s/ Jeffrey D. Fotta
Mark T. Finn Jeffrey D. Fotta
Co-Portfolio Manager Co-Portfolio Manager
6
<PAGE>
<PAGE>
<TABLE>
LINDNER INVESTMENTS
SCHEDULE OF INVESTMENTS - JUNE 30, 2000
<CAPTION>
Number of Shares -
Principal Amount
Name of Issuer and Title of Issue of Bonds Value
------------------------------------------------- ------------------ ---------------
<S> <C> <C>
LINDNER LARGE-CAP FUND
----------------------
COMMON STOCKS (91.29%)
Aerospace/Defense (1.37%)
Boeing Company 66,300 $ 2,772,169
Raytheon Company Class B 100,000 1,925,000
---------------
4,697,169
---------------
Airlines (0.85%)
UAL Corporation 50,000 2,909,375
---------------
Automobiles and Parts (0.42%)
General Motors Corporation 25,000 1,451,563
---------------
Brewery (1.02%)
Anheuser-Busch Companies, Inc. 46,900 3,502,844
---------------
Chemicals and Allied Products (0.37%)
PPG Industries, Inc. 28,200 1,249,613
---------------
Computer and Electronic Equipment (7.17%)
3Com Corporation<F*> 75,000 4,321,875
Apple Computer, Inc.<F*> 70,000 3,666,250
Compaq Computer Corporation 100,000 2,556,250
Credence Systems Corporation<F*> 55,000 3,035,313
Dell Computer Corporation<F*> 100,000 4,931,250
International Business Machines Corporation 55,000 6,025,938
---------------
24,536,876
---------------
Computer Software/Services (14.88%)
America Online, Inc.<F*> 50,300 2,653,325
Bluestone Software, Inc.<F*> 24,500 629,344
BMC Software, Inc.<F*> 75,000 2,736,330
Cisco Systems, Inc.<F*> 120,000 7,627,500
Citrix Systems, Inc.<F*> 75,000 1,420,313
Compuware Corporation<F*> 90,000 933,750
Informix Corporation<F*> 250,000 1,859,375
Lycos, Inc.<F*> 45,000 2,430,000
Macromedia, Inc.<F*> 55,700 5,385,494
Microsoft Corporation<F*> 80,000 6,400,000
New Era of Networks, Inc.<F*> 85,000 3,612,500
Novell, Inc.<F*> 300,000 2,775,000
Oracle Corporation<F*> 45,000 3,782,813
Rational Software Corporation<F*> 40,000 3,717,500
Sycamore Networks, Inc.<F*> 29,500 3,256,063
Transaction Systems Architects, Inc.<F*> 100,000 1,712,500
---------------
50,931,807
---------------
Electronic Component Distributors (0.68%)
W.W. Grainger, Inc. 75,000 2,310,938
---------------
Electrical Equipment (4.17%)
Ballard Power Systems, Inc.<F*> 40,000 3,592,500
Cytyc Corporation<F*> 65,000 3,469,375
General Electric Company 75,000 3,975,000
Vishay Intertechnology, Inc.<F*> 85,000 3,224,688
---------------
14,261,563
---------------
Electrical Generation (0.44%)
UniSource Energy Corporation 100,000 1,500,000
---------------
<CAPTION>
Number of Shares -
Principal Amount
Name of Issuer and Title of Issue of Bonds Value
------------------------------------------------- ------------------ ---------------
<S> <C> <C>
Financials (1.29%)
American Express Company 20,000 $ 1,042,500
Comerica, Inc. 75,000 3,365,625
---------------
4,408,125
---------------
Food and Beverage (1.19%)
Coca-Cola Enterprises, Inc. 250,000 4,078,125
---------------
Forest Products (1.99%)
International Paper Corporation 110,000 3,279,375
Rayonier, Inc. 45,000 1,614,375
Smurfit-Stone Container Corporation<F*> 150,000 1,931,250
---------------
6,825,000
---------------
Freight (1.25%)
Airborne Freight Corporation 125,000 2,367,188
FDX Corporation<F*> 50,000 1,900,000
---------------
4,267,188
---------------
Gaming, Lottery & Parimutual Betting (0.54%)
International Game Technology<F*> 70,000 1,855,000
---------------
Healthcare (7.24%)
American Home Products Corporation 50,000 2,937,500
Bausch & Lomb, Inc. 50,000 3,868,750
Bristol-Myers Squibb Company 70,000 4,077,500
Express Scripts, Inc.<F*> 60,000 3,727,500
Guidant Corporation<F*> 25,000 1,237,500
Humana, Inc.<F*> 750,000 3,656,250
Pharmacia & Upjohn, Inc. 50,000 2,584,375
Tenet Healthcare Corporation 100,000 2,700,000
---------------
24,789,375
---------------
Hotel Operator (0.96%)
Host Marriott Corporation 350,000 3,281,250
---------------
Household Products (2.18%)
Fort James Corporation 150,000 3,468,750
Procter & Gamble Company 70,000 4,007,500
---------------
7,476,250
---------------
Insurance (1.82%)
CIGNA Corporation 40,000 3,740,000
Provident Companies, Inc. 125,000 2,507,813
---------------
6,247,813
---------------
Investment Banking/Brokerage (2.43%)
J. P. Morgan & Company, Inc. 15,000 1,651,875
Knight/Trimark Group, Inc.<F*> 52,500 1,565,156
Lehman Brothers Holdings, Inc. 28,400 2,685,575
Morgan Stanley Dean Witter & Company 29,200 2,430,900
---------------
8,333,506
---------------
Leisure/Entertainment (1.07%)
Hasbro, Inc. 150,000 2,259,375
Royal Caribbean Cruises LTD 75,000 1,387,500
---------------
3,646,875
---------------
Manufacturing (4.12%)
Diebold, Inc. 100,000 2,787,500
Honeywell International, Inc. 52,500 1,768,594
Mettler - Toledo International, Inc.<F*> 25,000 1,000,000
See Notes to Financial Statements 7
<PAGE>
<PAGE>
<CAPTION>
LINDNER INVESTMENTS
SCHEDULE OF INVESTMENTS - JUNE 30, 2000
Number of Shares -
Principal Amount
Name of Issuer and Title of Issue of Bonds Value
------------------------------------------------- ------------------ ---------------
<S> <C> <C>
LINDNER LARGE-CAP FUND
----------------------
Manufacturing (continued)
Minnesota Mining and Manufacturing Company 25,000 $ 2,062,500
Pall Corporation 100,000 1,850,000
Tyco International Ltd. 50,000 2,368,750
USG Corporation 75,000 2,278,125
---------------
14,115,469
---------------
Oil & Gas Exploration and Production (1.39%)
Noble Affiliates, Inc. 70,000 2,607,500
Unocal Corporation 65,000 2,153,125
---------------
4,760,625
---------------
Oil Refining and Marketing (0.90%)
Amerada Hess Corporation 50,000 3,087,500
---------------
Restaurants and Food Preparation (0.78%)
Wendy's International, Inc. 150,000 2,671,875
---------------
Retail (4.37%)
Best Buy Company, Inc.<F*> 50,000 3,162,500
CDW Computer Centers, Inc.<F*> 70,000 4,375,000
Circuit City Stores, Inc. 70,000 2,323,125
Consolidated Stores Corporation<F*> 150,000 1,800,000
Costco Companies, Inc.<F*> 100,000 3,300,000
---------------
14,960,625
---------------
Retail - Specialty (2.93%)
AnnTaylor Stores Corporation<F*> 107,800 3,570,875
Borders Group, Inc.<F*> 300,000 4,668,750
Home Depot, Inc. 35,600 1,777,775
---------------
10,017,400
---------------
Semiconductors (5.43%)
Agilent Technologies, Inc.<F*> 17,000 1,253,750
Anadigics, Inc.<F*> 57,500 1,958,594
Conexant Systems, Inc.<F*> 31,000 1,507,375
Micron Technology, Inc. 20,000 1,761,250
RF Micro Devices, Inc.<F*> 15,000 1,314,375
Teradyne, Inc.<F*> 40,000 2,940,000
Vitesse Semiconductor Corporation<F*> 56,500 4,156,281
Xilinx, Inc.<F*> 45,000 3,715,313
---------------
18,606,938
---------------
Services (3.24%)
CMGI, Inc.<F*> 40,000 1,832,500
CSG Systems International, Inc.<F*> 65,000 3,644,063
marchFIRST, Inc.<F*> 190,000 3,467,500
The Interpublic Group of Companies, Inc. 50,000 2,150,000
---------------
11,094,063
---------------
<PAGE>
<CAPTION>
Number of Shares -
Principal Amount
Name of Issuer and Title of Issue of Bonds Value
------------------------------------------------- ------------------ ---------------
<S> <C> <C>
Telecommunications Equipment (4.78%)
Ciena Corporation<F*> 7,500 $ 1,250,156
Harmonic, Inc.<F*> 125,000 3,093,750
Lucent Technologies, Inc. 47,500 2,814,375
Motorola, Inc. 120,000 3,487,500
QUALCOMM, Inc.<F*> 55,000 3,300,000
World Access, Inc.<F*> 220,000 2,433,750
---------------
16,379,531
---------------
Telecommunications Service (4.86%)
AT & T Corporation 105,000 3,320,625
BellSouth Telecommunications, Inc. 25,000 1,065,625
Powerwave Technologies, Inc.<F*> 60,563 2,664,772
Qwest Communications International, Inc.<F*> 115,000 5,714,063
U S WEST, Inc. 45,000 3,858,750
---------------
16,623,835
---------------
Miscellaneous (5.16%) 17,651,113
---------------
Total Common Stocks (Cost $282,605,086) 312,529,229
---------------
U.S. GOVERNMENT AGENCY SECURITIES (16.12%)
FHLBDN, 7/26/00 $ 500,000 497,784
FHLBDN, 8/04/00 13,800,000 13,716,587
FHLMCDN, 7/05/00 100,000 99,930
FHLMCDN, 7/07/00 8,100,000 8,091,495
FHLMCDN, 7/11/00 800,000 798,583
FHLMCDN, 7/13/00 1,700,000 1,696,396
FHLMCDN, 7/18/00 7,300,000 7,278,248
FHLMCDN, 7/25/00 5,000,000 4,978,700
FHLMCDN, 8/08/00 3,500,000 3,476,282
FHLMCDN, 8/15/00 1,400,000 1,388,835
FHLMCDN, 8/22/00 11,300,000 11,195,701
FNMADN, 8/10/00 2,000,000 1,985,778
---------------
Total U.S. Government Agency Securities
(Cost $55,204,319) 55,204,319
---------------
Total Investments (Cost $337,809,405) 107.41% 367,733,548
Excess of Liabilities over Other Assets (7.41%) (25,373,716)
------------- ---------------
Net Assets 100.00% $ 342,359,832
============= ===============
<FN>
<F*>Non-income producing
FHLBDN = Federal Home Loan Banks Discount Note
FHLMCDN = Federal Home Loan Mortgage Corporation Discount Note
FNMADN = Federal National Mortgage Association Discount Note
</TABLE>
8 See Notes to Financial Statements
<PAGE>
<PAGE>
PERFORMANCE SUMMARY
The Lindner Asset Allocation Fund Investor Shares had a total return
of -5.48% for this fiscal year ended June 30, 2000. The fund's
benchmark--a 60/40 mix of the S&P 500 Index and the Lehman Brothers
Intermediate Bond Index respectively--returned 5.83% over the same
period. The S&P 500 returned 7.25% in the same period, while the
Lehman Intermediate Bond Index increased 3.71%. The performance of
the Russell 1000 Index and Dow Jones Industrial Average for the
fiscal year was 9.14% and -3.31%, respectively.
The structural changes in fund management that began during
spring/summer 1999 continued through most of Fiscal 2000. The Fund
has moved out of small-cap and less liquid stocks and into larger
cap and more liquid S&P 500 stocks. Some of the fixed income issues
were difficult to sell. However, we are pleased to report that we
were able to sell the majority of the problem issues and reinvest in
high-quality corporate bonds (Procter & Gamble, FedEx), as well as
10-year Treasury Bonds.
In the fiscal year, however, we experienced several setbacks in the
Asset Allocation fund. A long-time holding--Uranium Resources--has
been driven to near bankruptcy; our TWA bond position (another long-
time holding) has continued to lose money. We believe the worst is
behind us, and that Fund performance will now improve because of the
steps we have taken. We have eliminated most of the problem issues,
significantly increased the quality of the assets, increased the
number of holdings, and reduced both volatility and fundamental
risks.
The Fund's asset mix of 60% equity and 40% fixed income was the
allocation for Fiscal 2000. Technology once again outperformed all
other sectors. Northern Telecom (NT), up 187%, and Corning (GLW), up
410%, were leaders for the Fund. Some more traditional companies,
such as Johnson and Johnson (JNJ), up 40%, and General Electric
(GE), up 35%, posted solid gains.
We remain optimistic about the prospects for Asset Allocation Fund,
and believe that this Fiscal Year will see significant turnaround in
Fund performance. The portfolio is now well-positioned to perform
relative to its benchmark going forward. We have received several
questions recently about our thinking on the role the Lindner Asset
Allocation Fund should play in a shareowner's portfolio. The
paragraphs that follow attempt to set the Lindner Asset Allocation
Fund in perspective.
(continued on next page)
LINDNER ASSET ALLOCATION FUND
Ticker Symbol: LDDVX
PERFORMANCE GRAPH
--------------------------------------------------------------------
Comparison of change in value of $10,000 invested in the S&P 500
Index/Lehman Brothers Corporate Bond Index and the Lindner Asset
Allocation Fund--Investor Shares from June 30, 1990 to June 30, 2000
and Institutional Shares from July 9, 1996 to June 30, 2000:
[Asset Allocation Fund graph]
PAST PERFORMANCE IS NOT PREDICTIVE OF FUTURE PERFORMANCE
<TABLE>
AVERAGE ANNUAL TOTAL RETURN
<CAPTION>
For Investor Shares For Institutional Shares
For Periods Ended June 30, 2000 For Periods Ended June 30, 2000
<S> <C> <C> <C>
1 Year (5.48%) 1 Year (5.93%)
5 Year 5.28% Inception 2.77%
10 Year 9.02%
</TABLE>
9
<PAGE>
Our shareowners will remember that the Asset Allocation Fund was
formerly named the Dividend Fund. We refocused the fund as market
forces drove dividend yields to historic lows and corporate
management used excess cash to buy back their company's stock
instead of increasing dividends paid to shareowners. The stock
market and company management have changed behavior dramatically but
have our investors' needs changed that much? We think not. We
believe that our Asset Allocation Fund investors are seeking
competitive returns with current income, an important factor in the
return equation.
Each individual investor is like an investment strategist who must
determine the best allocation between stocks, bonds, cash, and value
and growth stocks, to meet their needs. Using their own judgment, or
with the help of professional advisors, they attempt to factor risks
into the decision equation and therefore investors speak of the
"risk return trade-off" and "risk adjusted returns". Investors make
these balancing decisions all the time because experience has taught
them that it could be harmful to their investment needs to pursue
any single component of return (eg. yield) or visible feature (eg.
technology) of the market at the expense of risk control. But the
complexities of the market and the US economy alone are daunting.
Today, the speed of information and market movement is breathtaking.
Think about this on a global scale and you have justification for
retaining professional management. Here is where the Lindner Asset
Allocation Fund fits in a diversified portfolio of investments. We
see the Fund as a manager of risk, a disciplined contrarian (at the
Asset Allocation class level) which will act to balance the risks
with the expected returns. That's why we moved away from low-quality
stocks and bonds to higher-quality investments. The yields in
low-quality stocks and bonds looked attractive but the risks, in our
judgment, were too high. We were managing the risks associated with
a Federal Reserve interest rate tightening and a possible slowdown
in economic growth. In this case, the cost was a reduction in yield.
Recent evidence suggests, however, that this may have been a timely
decision as recent Wall Street Journal articles point out; there
have been large increases in defaults of low-quality debt. Another
risk we believe that investors manage--sometimes after the fact--is
this market's valuation risk. It's so obvious and yet so difficult
to manage. We say it's so obvious because to us overvaluation
appears so visibly in much of the technology sector. And difficult
to manage because technology issues recently reached 30+% of the
weight in the S&P 500 Index. The last time a sector dominated like
this was energy back in 1980. Since March, the technology laden
NASDAQ Composite has returns similar to the S&P 500 but with
two-and-a-half times the volatility! (Some of the Asset Allocation
fund performance lag in the April, May, and June time frame can be
attributed to this volatility.) Consider the table below.
<TABLE>
COMPONENTS OF RETURN
S&P 500 INDEX
ANNUAL COMPOUND %
<CAPTION>
1930-99 1960-99 1990-99
<S> <C> <C> <C>
Dividends 4.6% 3.3% 3.4%
Real Earnings Growth 1.4% 2.2% 2.3%
Change in Price Earnings 1.3% 1.7% 8.5%
--- --- ----
Real Total Return 7.3% 7.2% 14.2%
=== === ====
</TABLE>
This table highlights several points. One: The recent diminished
importance of dividends to total returns. Two: Recent total returns
of 14.2% compounded are double the long-run experience. Three: The
major contributor to these great recent returns has been
price/earnings ratio expansion. The NASDAQ Index is used as a proxy
for the returns to technology investing. The rise from the 3rd
quarter of 1974, when this index stood at 55, to the most recent top
of 5,048.62 in March of this year traces out a secular bull market.
The Index then dropped to 3,164.55 on May 23, a loss of 37.32%. Jim
Stack of Investment Research calculated the market capitalization
and earnings for the NASDAQ at the March high and the May low. The
high P/E was approximately 265X earnings, and the P/E at the May a
low of 178X! We view these valuations as much more exuberant than
rational, to paraphrase the Fed chairman's observation on the stock
market.
And so here is the dilemma with which most investors must grapple:
If the past is any guide, future returns will likely revert to the
longer-term average. Arguably, that drop in returns could come from
a lowering of P/E ratios. If that were to occur, would technology
escape, be hurt or be crushed? This oversimplified view of the world
does motivate our view that the Lindner Asset Allocation Fund could
play an important role in the conservative investor's portfolio if
they have neither the time or resources to manage the risks that are
inherent in today's market. When the risk return trade-off looks
more favorable to us, we will increase our equity exposure
(currently about 55%), increase the fund's yield, and take on other
risks where we see compensation (returns) for bearing that risk. We
thank you for your patience. We have every faith it will be
rewarded.
/s/ Mark T. Finn /s/ Jeffrey D. Fotta /s/ Jerry Barnes
Mark T. Finn Jeffrey D. Fotta Gerald H. Barnes
Co-Portfolio Manager Co-Portfolio Manager Co-Portfolio Manager
10
<PAGE>
<PAGE>
<TABLE>
LINDNER INVESTMENTS
SCHEDULE OF INVESTMENTS - JUNE 30, 2000
<CAPTION>
Number of Shares -
Principal Amount
Name of Issuer and Title of Issue of Bonds Value
------------------------------------------------- ------------------ ---------------
<S> <C> <C>
LINDNER ASSET ALLOCATION FUND
-----------------------------
COMMON STOCKS (48.31%)
Aerospace/Defense (1.67%)
Boeing Company 90,000 $ 3,763,125
Lockheed Martin Corporation 150,000 3,721,875
---------------
7,485,000
---------------
Automobiles and Parts (0.71%)
General Motors Corporation 55,000 3,193,438
---------------
Brewery (0.83%)
Anheuser-Busch Companies, Inc. 50,000 3,734,375
---------------
Chemicals and Allied Products (0.63%)
E. I. du Pont de Nemours and Company 65,000 2,843,750
---------------
Computer and Electronic Equipment (1.91%)
Compaq Computer Corporation 100,000 2,556,250
International Business Machines Corporation 55,000 6,025,938
---------------
8,582,188
---------------
Computer Software/Services (5.51%)
3Com Corporation<F*> 50,000 2,881,250
America Online, Inc.<F*> 45,000 2,373,750
Cisco Systems, Inc.<F*> 100,000 6,356,250
Microsoft Corporation<F*> 163,700 13,096,000
---------------
24,707,250
---------------
Electrical Equipment (2.36%)
General Electric Company 200,000 10,600,000
---------------
Electrical Generation (1.13%)
Ameren Corporation 100,000 3,375,000
Pinnacle West Capital Corporation 50,000 1,693,750
---------------
5,068,750
---------------
Financials (0.20%)
Citigroup, Inc. 15,000 903,750
---------------
Food and Beverage (1.39%)
Coca-Cola Company 75,000 4,307,813
ConAgra, Inc. 100,000 1,906,250
---------------
6,214,063
---------------
Healthcare (3.72%)
Abbott Laboratories 90,000 4,010,625
Eli Lilly and Company 22,500 2,247,188
Johnson & Johnson 50,000 5,093,750
Medtronic, Inc. 30,000 1,494,375
Merck & Company, Inc. 50,000 3,831,250
---------------
16,677,188
---------------
Household Products (0.96%)
Kimberly-Clark Corporation 75,000 4,303,125
---------------
Insurance (0.83%)
CIGNA Corporation 40,000 3,740,000
---------------
Investment Banking/Brokerage (0.99%)
J. P. Morgan & Company, Inc. 40,000 4,405,000
---------------
Leisure/Entertainment (1.72%)
Harley-Davidson, Inc. 100,000 3,850,000
Walt Disney Company 100,000 3,881,250
---------------
7,731,250
---------------
<CAPTION>
Number of Shares -
Principal Amount
Name of Issuer and Title of Issue of Bonds Value
------------------------------------------------- ------------------ ---------------
<S> <C> <C>
Manufacturing (2.42%)
Corning, Inc. 25,000 $ 6,746,875
Minnesota Mining and Manufacturing Company 50,000 4,125,000
---------------
10,871,875
---------------
Mining (0.00%)
Atlas Minerals, Inc. - Rule 144A<F*>,<Fr> (Acquired
6/01/95, Cost $3,500,000) 959,981 0
Uranium Resources, Inc., - Rule 144A<F*>,<Fa>,<Fr>
(Acquired 5/25/95, Cost $4,750,827) 1,583,609 0
---------------
0
---------------
Oil & Gas Exploration and Production (1.65%)
Exxon Mobile Corporation 62,500 4,906,250
USX-Marathon Group 100,000 2,506,250
---------------
7,412,500
---------------
Paper, Printing and Publishing (0.56%)
Meredith Corporation 75,000 2,531,250
---------------
Photography/Imaging (1.67%)
Eastman Kodak Company 65,000 3,867,500
Xerox Corporation 175,000 3,631,250
---------------
7,498,750
---------------
Restaurants and Food Preparation (0.73%)
McDonald's Corporation 100,000 3,293,750
---------------
Retail (1.28%)
Wal-Mart Stores, Inc. 100,000 5,762,500
---------------
Retail - Specialty (1.66%)
Home Depot, Inc. 50,000 2,496,875
Lowe's Companies, Inc. 50,000 2,053,125
Toys "R" Us, Inc.<F*> 200,000 2,912,500
---------------
7,462,500
---------------
Semiconductors (1.49%)
Intel Corporation 50,000 6,684,375
---------------
Services (0.45%)
Pitney Bowes, Inc. 50,000 2,000,000
---------------
Telecommunications Equipment (4.56%)
Lucent Technologies, Inc. 95,000 5,628,750
Metricom, Inc.<F*> 100,000 2,787,500
Nortel Networks Corporation 100,000 6,825,000
Scientific-Atlanta, Inc. 70,000 5,215,000
---------------
20,456,250
---------------
Telecommunications Service (2.81%)
AT & T Corporation 150,000 4,743,750
Comcast Corporation, Class A<F*> 100,000 4,050,000
NEXTLINK Communications, Inc.<F*> 100,000 3,793,750
---------------
12,587,500
---------------
Miscellaneous (4.47%) 20,042,501
---------------
Total Common Stocks (Cost $207,148,069) 216,792,878
---------------
See Notes to Financial Statements 11
<PAGE>
<PAGE>
<CAPTION>
LINDNER INVESTMENTS
SCHEDULE OF INVESTMENTS - JUNE 30, 2000
Number of Shares -
Principal Amount
Name of Issuer and Title of Issue of Bonds Value
------------------------------------------------- ------------------ ---------------
<S> <C> <C>
LINDNER ASSET ALLOCATION FUND
-----------------------------
PREFERRED STOCKS (1.76%)
Financials (0.52%)
LSB Industries, Inc., $3.25 convertible 422,700 $ 2,324,850
---------------
Healthcare (0.74%)
NeoRX Corporation, $2.475 convertible 139,277 3,307,829
---------------
Insurance (0.50%)
AICI Capital Trust, 9% 188,800 2,265,600
---------------
Total Preferred Stocks (Cost $25,250,610) 7,898,279
---------------
NON-CONVERTIBLE BONDS (22.19%)
Airlines (1.39%)
Trans World Airlines, Inc., 12%, due 2002 $ 9,064,000 6,208,840
---------------
Computer and Electronic Equipment (0.89%)
Sun Microsystems, Inc., 7.65% due 2009 4,000,000 4,004,512
---------------
Freight (0.80%)
FDX Corporation, 6.72% due 2022 3,921,718 3,580,352
---------------
Household Products (0.87%)
Procter & Gamble Company, 6.875% due 2009 4,000,000 3,904,624
---------------
Telecommunications Service (2.11%)
AT&T Corporation, 6% due 2009 5,000,000 4,465,475
MCI WorldCom, Inc., 7.75% due 2007 5,000,000 5,005,760
---------------
9,471,235
---------------
U.S. Government Obligation (16.13%)
U.S. Treasury Note, 6.5% due 2015 70,000,000 72,384,372
---------------
Total Non-Convertible Bonds (Cost $101,605,084) 99,553,935
---------------
<CAPTION>
Number of Shares -
Principal Amount
Name of Issuer and Title of Issue of Bonds Value
------------------------------------------------- ------------------ ---------------
<S> <C> <C>
CONVERTIBLE BONDS (0.29%)
Semiconductors (0.29%)
Conexant Systems, Inc., 4.25% due 2006 (cost
$2,286,470) $ 600,000 $ 1,310,246
---------------
U.S. GOVERNMENT AGENCY SECURITIES (27.25%)
FHLBDN, 7/26/00 $ 7,800,000 7,765,442
FHLBDN, 8/04/00 12,200,000 12,126,258
FHLMCDN, 8/22/00 12,000,000 11,889,240
FHLMCDN, 7/05/00 2,400,000 2,398,313
FHLMCDN, 7/07/00 11,900,000 11,887,505
FHLMCDN, 7/11/00 3,000,000 2,994,708
FHLMCDN, 7/13/00 12,300,000 12,273,924
FHLMCDN, 8/01/00 15,000,000 14,917,721
FHLMCDN, 8/08/00 20,000,000 19,865,190
FHLMCDN, 8/15/00 14,900,000 14,781,172
FNMADN, 7/18/00 5,800,000 5,782,718
FNMADN, 7/24/00 5,600,000 5,577,281
---------------
Total U.S. Government Agency Securities (Cost
$122,259,472) 122,259,472
---------------
Total Investments (Cost $458,549,705) 99.80% 447,814,810
Excess of Other Assets over Liabilities 0.20% 901,271
---------------- ---------------
Net Assets 100.00% $ 448,716,081
================ ===============
<FN>
<F*>Non-income producing
<Fa>Denotes security is affiliated (see Note 5)
<Fr>Denotes security is restricted as to resale. The aggregate value of
restricted securities at June 30, 2000 was $0 which represented 0%
of net assets.
FHLBDN = Federal Home Loan Banks Discount Note
FHLMCDN = Federal Home Loan Mortgage Corporation Discount Note
FNMADN = Federal National Mortgage Association Discount Note
</TABLE>
12 See Notes to Financial Statements
<PAGE>
PERFORMANCE SUMMARY
The Lindner Utility Fund Investor Shares had a total return of
32.49% for the fiscal year ended June 30, 2000, and ended the fiscal
year as the top performing utility fund in the country out of the 93
utility funds followed by Lipper, Inc.<F1> The performance of the
Dow Jones Utilities Index and the S&P Utilities Index (which
includes telecommunication securities) was 1.02% and 3.94%,
respectively, over the same period.
The Utility Fund benefited greatly from the appreciation of the
telecommunications sector. Voicestream Wireless Corp, which
purchased Omnipoint, was our largest holding and increased in value
308% during the fiscal year. Our telecommunication and technology
stocks far exceeded the performance of our traditional utility
stocks in the portfolio. Traditional utilities had a better second
half of the year (January-June 2000) with the Dow Jones Utilities
Index posting a 10.72% gain. The Lindner Utility Fund also profited
from substantial gains in Enron Corp, BP Amoco, AES Corporation, and
Northeast Utilities during the last half of Fiscal 2000. The
telecommunications sector saw widespread profit taking and interest
rate fears, causing the sector to lose over 18% during the last
quarter. To put this in perspective, AT&T alone has lost over 40% of
its value over this time period. While the fund's performance
relative to its benchmark indexes declined during the second half of
the fiscal year, we believe that the fund is properly positioned to
benefit from the improved valuations in the telecommunications
sector.
In Fiscal 2001, the Utility Fund will continue to monitor the growth
of the telecommunications industry and take profits when any sector
gets overweighted or stocks become overvalued. Over the past six
months we have increased our exposure to traditional utilities; we
currently favor the more diversified traditional utilities
companies.
The investment philosophy for the entire Lindner Fund family
has been updated to better reflect the changing nature of capital
markets, and the modern financial and economic environment. The
classical Lindner value approach has been revised to assess "value"
in relative rather than in absolute terms. Under the new approach,
the value of a firm is determined by looking at the firm's current
cash flows coupled with the expected future cash flows. Mispricings
of securities provide the opportunity for profits. Mispricings can
only be ascertained on a relative basis by reference to other
similar securities. All other things equal, the value created by
a company's expected future cash flows should be in line with
similar companies.
The increasing volatility of the markets requires stricter risk
management practices on the money management side. The key tool
to sound risk management is diversification. Cross-sectional
diversification is applied by broadening the investment universe
(i.e. increasing the number of stocks in a portfolio), and adjusting
the holding weights accordingly in order to avoid taking
fundamental-, sector-, or company-specific bets. On the other
hand, time diversification should also be applied by making proper
asset allocation decisions to reduce the dependence of the portfolios
on specific asset types.
LINDNER UTILITY FUND
Ticker Symbol: LDUTX
PERFORMANCE GRAPH
---------------------------------------------------------------------
Comparison of change in value of $10,000 invested in the Dow Jones
Utility Index and the Lindner Utility Fund--Investor Shares from
August 30, 1993 to June 30, 2000 and Institutional Shares from
October 31, 1996 to June 30, 2000:
[Utility Fund graph]
PAST PERFORMANCE IS NOT PREDICTIVE OF FUTURE PERFORMANCE
<PAGE>
<TABLE>
AVERAGE ANNUAL TOTAL RETURN
<CAPTION>
For Investor Shares For Institutional Shares
For Periods Ended June 30, 2000 For Periods Ended June 30, 2000
<S> <C> <C> <C>
1 Year 32.49% 1 Year 32.29%
5 Year 20.80% Inception 18.87%
Inception 16.89%
</TABLE>
Liquidity is also a major consideration for the fund holdings in
that, if our opinion on a security changes, the market for the
security will be broad enough so that the price of the security will
be relatively unaffected by our decision to sell that security.
Our enhanced risk management approach consciously avoids taking
concentrated risks. Very large "bets" may provide better performance
for fund managers at certain times, but are not 100% repeatable. By
comparison, performance resulting from sound investment strategies
provide consistent, recurring, low volatility returns, which
contribute to healthy asset growth for shareowners over the long
run.
/s/ Mark T. Finn /s/ Thomas F. Lynch /s/ Jerry Barnes
Mark T. Finn Thomas F. Lynch Gerald H. Barnes
Co-Portfolio Manager Co-Portfolio Manager Co-Portfolio Manager
[FN]
<F1>Lipper Analytical, Inc. is a leading provider of data and
analysis on the investment company business. The Fund ranked
number 1 out of 93 funds and #7 out of 65 funds based on total
returns for the one and five year periods ended June 30, 2000.
As of July 31, 2000, the Fund is down 0.37% year-to-date and the
Dow Jones Utility Index and Standard and Poor's Utility Index
were up 17.42% and 22.92% respectively).
13
<PAGE>
<PAGE>
<TABLE>
LINDNER INVESTMENTS
SCHEDULE OF INVESTMENTS - JUNE 30, 2000
<CAPTION>
Number of Shares -
Principal Amount
Name of Issuer and Title of Issue of Bonds Value
------------------------------------------------- ------------------ ---------------
<S> <C> <C>
LINDNER UTILITY FUND
--------------------
COMMON STOCKS (94.12%)
Broadcast/Media (6.01%)
Adelphia Communications Corporation<F*> 10,000 $ 468,750
AT&T Corporation Class A Liberty Media Group
Shares<F*> 30,000 727,500
EchoStar Communications Corporation<F*> 15,000 496,641
General Motors Corporation Class H 5,000 438,750
Mediacom Communications Corporation<F*> 3,300 50,738
RCN Corporation<F*> 14,000 355,250
---------------
2,537,629
---------------
Computer and Electronic Equipment (2.04%)
Proxim, Inc.<F*> 8,700 861,029
---------------
Computer Software/Services (2.04%)
Diversinet Corporation<F*> 10,000 118,750
PSINet, Inc.<F*> 16,000 402,000
Research In Motion, Ltd.<F*> 7,500 339,375
---------------
860,125
---------------
Electronic Component Distributors (0.92%)
Cellstar Corporation<F*> 140,000 389,382
---------------
Electrical Generation (18.16%)
American Electric Power Company, Inc. 6,000 177,750
CH Energy Corporation 7,500 254,531
CMP Group, Inc. 15,000 439,688
Consolidated Edison, Inc. 25,000 740,625
Duke Energy Corporation 10,000 563,750
Edison International 20,000 410,000
FPL Group, Inc. 18,000 891,000
IPALCO Enterprises, Inc. 17,500 352,188
New Century Energies, Inc. 5,000 150,000
Northeast Utilities 25,000 543,750
NSTAR 10,000 406,875
PECO Energy Company 2,500 100,781
Pinnacle West Capital Corporation 15,000 508,125
Potomac Electric Power Company 12,000 300,000
RGS Energy Group, Inc. 7,500 166,875
TECO Energy, Inc. 30,000 601,875
Texas Utilities Company 10,000 295,000
The AES Corporation 8,000 365,000
Wisconsin Energy Corporation 20,000 396,250
---------------
7,664,063
---------------
Natural Gas Pipeline (5.91%)
Atmos Energy Corporation 10,000 175,000
Enron Corporation 20,000 1,290,000
NUI Corporation 7,500 202,500
Peoples Energy Corporation 6,000 194,250
Piedmont Natural Gas, Inc. 7,500 199,219
Questar Corporation 10,000 193,750
Washington Gas Light Company 10,000 240,625
---------------
2,495,344
---------------
Oil & Gas Exploration and Production (3.09%)
Apache Corporation 5,000 294,063
Esenjay Exploration, Inc.<F*> 135,200 430,950
<PAGE>
<CAPTION>
Number of Shares -
Principal Amount
Name of Issuer and Title of Issue of Bonds Value
------------------------------------------------- ------------------ ---------------
<S> <C> <C>
Oil & Gas Exploration and Production (continued)
Exxon Mobile Corporation 5,000 $ 392,500
Noble Affiliates, Inc. 5,000 186,250
---------------
1,303,763
---------------
Oil Refining and Marketing (5.77%)
Amerada Hess Corporation 5,000 308,750
BP Amoco Group 24,600 1,391,438
Sunoco, Inc. 25,000 735,938
---------------
2,436,126
---------------
Oilfield Services (2.48%)
BJ Services Company<F*> 6,500 406,250
Transocean Offshore, Inc. 12,000 641,250
---------------
1,047,500
---------------
Services (1.16%)
At Home Corporation<F*> 20,000 415,000
Speedus.com, Inc.<F*> 12,500 74,219
---------------
489,219
---------------
Telecommunications Equipment (13.81%)
Com21, Inc.<F*> 10,000 250,000
Lucent Technologies, Inc. 10,000 592,500
Motorola, Inc. 7,500 217,969
Nextel Parners, Inc.<F*> 7,500 244,219
Nokia Corporation - ADR 9,000 449,438
Nortel Networks Corporation 10,981 749,453
Northpoint Communications Group, Inc.<F*> 20,000 223,750
QUALCOMM, Inc.<F*> 5,000 300,000
Scientific-Atlanta, Inc. 5,000 372,500
Tekelec, Inc.<F*> 27,500 1,325,156
Westell Technologies, Inc.<F*> 70,000 1,050,000
World Access, Inc.<F*> 5,000 55,313
---------------
5,830,298
---------------
Telecommunications Service (27.56%)
AT & T Corporation 20,000 632,500
Covad Communications Group, Inc.<F*> 21,750 350,719
GTE Corporation 8,000 498,000
IDT Corporation<F*> 7,500 254,531
MCI/Worldcom, Inc.<F*> 31,047 1,424,281
McLeodUSA, Inc., Class A<F*> 42,000 868,875
Net2Phone, Inc.<F*> 8,000 285,500
Nextel Communications, Inc.<F*> 19,000 1,162,563
Nextlink Communications, Inc.<F*> 22,900 868,769
Rogers Cantel Mobile Communications, Inc., Class B<F*> 17,000 484,500
SBC Communications, Inc. 20,000 865,000
Sprint Corporation 10,000 510,000
VoiceStream Wireless Corporation<F*> 15,000 1,744,454
Western Wireless Corporation<F*> 15,000 817,500
Winstar Communications, Inc.<F*> 25,500 863,813
---------------
11,631,005
---------------
Miscellaneous (5.17%) 2,182,432
---------------
Total Common Stocks (Cost $33,365,080) 39,727,915
---------------
14 See Notes to Financial Statements
<PAGE>
<PAGE>
<CAPTION>
LINDNER INVESTMENTS
SCHEDULE OF INVESTMENTS - JUNE 30, 2000
Number of Shares -
Principal Amount
Name of Issuer and Title of Issue of Bonds Value
------------------------------------------------- ------------------ ---------------
<S> <C> <C>
LINDNER UTILITY FUND
--------------------
U.S. GOVERNMENT AGENCY SECURITIES (12.71%)
FHLBDN, 7/26/00 $ 200,000 $ 199,118
FHLMCDN, 8/08/00 1,700,000 1,688,569
FHLMCDN, 8/22/00 2,100,000 2,080,617
FNMADN, 7/18/00 1,400,000 1,395,828
---------------
Total U.S. Government Agency Securities
(Cost $5,364,132) 5,364,132
---------------
Total Investments (Cost $38,729,212) 106.83% 45,092,047
Excess of Liabilities over Other Assets (6.83)% (2,883,116)
--------------- ---------------
Net Assets 100.00% $ 42,208,931
=============== ===============
<CAPTION>
Number of Shares -
Principal Amount
Name of Issuer and Title of Issue of Bonds Value
------------------------------------------------- ------------------ ---------------
<FN>
<F*>Non-income producing
FHLBDN = Federal Home Loan Banks Discount Note
FHLMCDN = Federal Home Loan Mortgage Corporation Discount Note
FNMADN = Federal National Mortgage Association Discount Note
</TABLE>
See Notes to Financial Statements 15
<PAGE>
<PAGE>
PERFORMANCE SUMMARY
The Lindner Small-Cap Fund Investor Shares had a total return of
16.26% in the fiscal year ended June 30, 2000. The performance of
the Russell 2000 Index, which is the benchmark for the Small-Cap
Fund, for the same period, was 14.49%.
The fund returned -7.94% for the first quarter of the fiscal year
followed by a tremendous second quarter with a return of 20.81%. The
third quarter return was 4.31%. The performance of the Russell 2000
Index was -6.33%, +18.60%, and +7.09%, for the same three-quarters
respectively.
Beginning in the fourth quarter, Jonathan Finn joined Mark Finn as
co-portfolio manager of the Fund. This marked the final phase of the
management transition that began more than a year before. During the
fourth quarter ending June 30, the Fund handily outperformed its
benchmark, besting the Russell 2000 Index by 3.99%, returning 0.22%
vs. a -3.77% return for the Russell. During this period the Fund
increased its number of holdings significantly, especially in
traditional value companies. New holdings were financed by a
combination of available cash and profit taking in some of the
Fund's profitable positions in the telecommunications, developing
communications, retail, and business services sectors. Some of the
investment choices for the fourth quarter include Bank United Corp,
Carrier Access Corp, Covance, Inc. and The Topps Co.
The twelve months ended June 30, 2000 saw growth stocks once again
outperform value stocks across virtually all market capitalizations.
For the 12 months ended June 30, the Russell 2000 Growth Index
returned 28.44% while the Russell 2000 Value Index return was
-0.84%. This represented an almost 30% spread between the return on
value companies and return on growth companies in the small-cap
universe. This disparity in performance between growth and value has
been one of the most difficult portfolio management challenges that
the Lindner Small-Cap Fund has faced. Management has adjusted to
these market realities by continuing to diversify the Fund's
holdings, and by increasing our participation in attractive growth
stocks.
As discussed in the Lindner Funds 1999 Annual Report, beginning in
the Fund's 1999 fiscal 4th quarter (April 1999), the investment
philosophy for the Lindner Small-Cap Fund and the entire Lindner
family of Funds, was reviewed. Our investment process has been
improved so as to reinvigorate our value approach across the entire
fund complex. The enhanced value approach, in combination with the
focus on creating a more liquid and more diversified portfolio, has
been at the center of this year's financial performance. Finding
value in small-cap companies has always been the primary focus of
the Fund, and over the past year managers of the Small-Cap Fund have
found some excellent values across the spectrum of small
capitalization companies.
LINDNER SMALL-CAP FUND
Ticker Symbol: LDRSX
PERFORMANCE GRAPH
---------------------------------------------------------------------
Comparison of change in value of $10,000 invested in the Russell
2000 Index and the Lindner Small-Cap Fund--Investor Shares from
January 25, 1994 to June 30, 2000 and Institutional Shares from
November 1, 1996 to June 30, 2000:
[Small-Cap Fund graph]
PAST PERFORMANCE IS NOT PREDICTIVE OF FUTURE PERFORMANCE
<TABLE>
AVERAGE ANNUAL TOTAL RETURN
<CAPTION>
For Investor Shares For Institutional Shares
For Periods Ended June 30, 2000 For Periods Ended June 30, 2000
<S> <C> <C> <C>
1 Year 16.26% 1 Year 16.12%
5 Year 16.07% Inception 14.02%
Inception 13.88%
</TABLE>
<PAGE>
The fiscal year just concluded was very successful particularly when
one considers the challenges that were faced. It also marks a
continuation of the solid long-term performance this Fund has
provided. The Fund outperformed its Russell 2000 benchmark while
fulfilling the goals established the year before: to build a
diversified and liquid portfolio characterized by companies with
attractive relative value and superior growth prospects. As a
shareowner you are now invested in a diversified cross section of
companies well grounded in Lindner's enhanced value philosophy.
Management believes the Fund continues to offer shareowners an
excellent investment opportunity in the small capitalization segment
of the market.
/s/ Mark T. Finn /s/ Jonathan F. Finn
Mark T. Finn Jonathan F. Finn
Co-Portfolio Manager Co-Portfolio Manager
16
<PAGE>
<PAGE>
<TABLE>
LINDNER INVESTMENTS
SCHEDULE OF INVESTMENTS - JUNE 30, 2000
<CAPTION>
Number of Shares -
Principal Amount
Name of Issuer and Title of Issue of Bonds Value
------------------------------------------------- ------------------ ---------------
<S> <C> <C>
LINDNER SMALL-CAP FUND
----------------------
COMMON STOCKS (91.50%)
Airlines (2.73%)
America West Holdings Corporation<F*> 16,000 $ 274,000
SkyWest, Inc. 14,200 526,288
---------------
800,288
---------------
Apparel & Other Textile Products (2.81%)
K-Swiss, Inc. 30,000 478,125
Quiksilver, Inc.<F*> 8,000 124,500
Ross Stores, Inc.<F*> 13,000 221,813
---------------
824,438
---------------
Automobiles and Parts (1.58%)
Tenneco Automotive, Inc. 65,000 341,250
Titan International, Inc. 23,000 122,188
---------------
463,438
---------------
Chemicals and Allied Products (0.97%)
Airgas, Inc.<F*> 50,000 284,375
---------------
Computer and Electronic Equipment (12.31%)
Copper Mountain Networks, Inc.<F*> 8,000 705,000
Digi International, Inc.<F*> 16,400 106,600
Equinox Systems, Inc.<F*> 50,000 300,000
Extreme Networks, Inc.<F*> 6,700 706,850
Proxim, Inc.<F*> 7,300 722,472
Quantum Corporation<F*> 20,000 193,750
Unova, Inc.<F*> 14,200 103,838
Xircom, Inc.<F*> 16,200 769,500
---------------
3,608,010
---------------
Computer Software/Services (14.75%)
Advantage Learning Systems, Inc.<F*> 46,000 707,250
Aware, Inc.<F*> 14,000 715,750
Fair, Isaac & Company, Inc. 17,200 756,800
FileNET Corporation<F*> 13,500 248,063
Information Architects Corporation<F*> 5,000 34,688
InterVoice, Inc.<F*> 30,000 196,875
Netegrity, Inc.<F*> 7,100 534,719
Progess Software Corporation<F*> 42,600 764,138
Santa Cruz Operation, Inc.<F*> 9,500 60,563
StarMedia Network, Inc.<F*> 4,000 75,500
Verity, Inc.<F*> 6,000 228,000
---------------
4,322,346
---------------
Electronic Component Distributors (1.93%)
Arrow Electronics, Inc.<F*> 13,500 418,500
Owens & Minor, Inc. 8,600 147,813
---------------
566,313
---------------
Financials (4.33%)
Bank United Corporation 8,600 302,613
Doral Financial Corporation 24,700 282,506
Hibernia Corporation 16,000 174,000
PMI Group, Inc. 5,100 242,250
Republic Bancorp, Inc. 30,000 268,125
---------------
1,269,494
---------------
Food and Beverage (0.62%)
Lance, Inc. 20,000 180,000
---------------
<PAGE>
<CAPTION>
Number of Shares -
Principal Amount
Name of Issuer and Title of Issue of Bonds Value
------------------------------------------------- ------------------ ---------------
<S> <C> <C>
Freight (2.71%)
OMI Corporation 43,000 $ 233,813
Swift Transportation Company, Inc.<F*> 40,000 560,000
---------------
793,813
---------------
Gaming, Lottery & Parimutual Betting (1.79%)
Station Casinos, Inc.<F*> 21,000 525,000
---------------
Healthcare (4.90%)
Covance, Inc.<F*> 28,500 251,156
Hanger Orthopedic Group, Inc.<F*> 15,000 74,063
Jones Pharma, Inc. 7,500 299,531
Mentor Corporation 4,000 108,750
Quest Diagnostics, Inc.<F*> 9,800 701,313
---------------
1,434,813
---------------
Household Products (0.60%)
Tupperware Corporation 8,000 176,000
---------------
Insurance (0.59%)
American Financial Group, Inc. 7,000 173,688
---------------
Leisure/Entertainment (0.84%)
Callaway Golf Company 15,100 246,319
---------------
Manufacturing (2.44%)
United Stationers, Inc.<F*> 22,100 715,488
---------------
Oilfield Services (0.97%)
Seitel, Inc.<F*> 35,000 284,375
---------------
Printing and Publishing (1.33%)
Topps Company, Inc.<F*> 34,000 391,000
---------------
Retail - Specialty (7.60%)
AnnTaylor Stores Corporation<F*> 25,000 828,125
Brauns Fashions Corporation<F*> 19,000 697,063
Copart, Inc<F*> 20,000 320,000
Fossil, Inc.<F*> 2,500 48,594
Pier 1 Imports, Inc. 10,000 97,500
Venator Group, Inc.<F*> 23,000 235,750
---------------
2,227,032
---------------
Semiconductors (1.09%)
Fairchild Semiconductor International, Inc.<F*> 6,000 243,000
Semtech Corporation<F*> 1,000 76,484
---------------
319,484
---------------
Services (7.53%)
ADVO, Inc.<F*> 4,500 189,000
Digital Generation Systems, Inc.<F*> 40,700 274,725
Forrester Research, Inc.<F*> 5,000 364,063
On Assignment, Inc.<F*> 25,000 762,500
Per-Se Technologies, Inc.<F*> 19,300 180,938
TeleTech Holdings, Inc.<F*> 14,000 434,875
---------------
2,206,101
---------------
Telecommunications Equipment (8.47%)
Andrew Corporation<F*> 15,300 513,506
Anixter International, Inc.<F*> 16,800 445,200
ANTEC Corporation<F*> 13,200 548,625
Carrier Access Corporation<F*> 6,500 343,688
Polycom, Inc.<F*> 6,700 630,428
---------------
2,481,447
---------------
See Notes to Financial Statements 17
<PAGE>
<PAGE>
<CAPTION>
LINDNER INVESTMENTS
SCHEDULE OF INVESTMENTS - JUNE 30, 2000
Number of Shares -
Principal Amount
Name of Issuer and Title of Issue of Bonds Value
------------------------------------------------- ------------------ ---------------
<S> <C> <C>
LINDNER SMALL-CAP FUND
----------------------
Telecommunications Service (3.75%)
Boston Communications Group, Inc.<F*> 60,000 $ 840,000
Net2Phone, Inc.<F*> 7,200 256,950
---------------
1,096,950
---------------
Miscellaneous (4.86%) 1,425,080
---------------
Total Common Stocks (Cost $21,323,808) 26,815,292
---------------
U.S. GOVERNMENT AGENCY SECURITIES (8.50%)
FHLBDN, 7/26/00 $ 200,000 199,114
FHLMCDN, 8/08/00 200,000 198,655
FNMADN, 7/18/00 2,000,000 1,994,041
<CAPTION>
Number of Shares -
Principal Amount
Name of Issuer and Title of Issue of Bonds Value
------------------------------------------------- ------------------ ---------------
<S> <C> <C>
U.S. GOVERNMENT AGENCY SECURITIES (CONTINUED)
FNMADN, 7/27/00 $ 100,000 $ 99,541
---------------
Total U.S. Government Agency Securities
(Cost $2,491,351) 2,491,351
---------------
Total Investments (Cost $23,815,159) 100.00% 29,306,643
Excess of Liabilities over Other Assets 0.00% (105)
------------- ---------------
Net Assets 100.00% $ 29,306,538
============= ===============
<FN>
<F*>Non-income producing
FHLBDN = Federal Home Loan Banks Discount Note
FHLMCDN = Federal Home Loan Mortgage Corporation Discount Note
FNMADN = Federal National Mortgage Association Discount Note
</TABLE>
18 See Notes to Financial Statements
<PAGE>
<PAGE>
PERFORMANCE SUMMARY
The Lindner Opportunities Fund Investor Shares, which began trading
on October 11, 1999, in the second quarter of the fiscal year, had a
total return of 15.19% for the period ended June 30, 2000. Over the
same time period, the S&P 500 had a return of 9.86%.
The Fund returned 18.20% for the abbreviated quarter ended December
31, 1999, followed by returns of - 2.90% and 0.36% for the 3rd and
4th fiscal quarters, respectively. For the same three periods, the
S&P 500 Index returned 10.33%, 2.29% and -2.66%.
Management took advantage of the Fund's flexible investment policy
to move the portfolio between value and growth holdings as well as
between large and small capitalization companies when our models
indicated greater potential in these market segments. At times the
fund took significant positions in cash to be defensive and to wait
for attractive investment opportunities to present themselves.
During the shortened quarter ended December 31, 1999, the Fund took
advantage of the extraordinary returns offered by growth stocks, and
investors were rewarded handsomely as momentum growth stocks pushed
to record highs. The Fund's correlation to the S&P 500 in the fiscal
third quarter ended March 31, 2000 was quite low. In February the
Fund returned 10.84% compared to the S&P that returned -1.89%, while
in March the Fund returned -2.62% as the S&P Index rallied 9.78%.
After pacing the S&P 500 Index for the first two months of the
quarter ended June 30, 2000, shareholders were rewarded in June when
management began tilting the Fund's investments in favor of mid- and
small-capitalization stocks and successfully captured some of the
better relative performance here, versus the performance in many
large-cap stocks. For example, in June the Fund returned 5.83%
compared to the S&P 500 Index return of 2.47%.
In the nearly nine months since its inception the Opportunities Fund
has outperformed the S&P 500 Index by 5.33% with low correlation to
that Index. The Fund's goal is to substantially outperform the S&P
500 Index in both good and poor market environments. Management
believes the Fund is well suited for volatility-tolerant investors
seeking a diversifying investment that offers the opportunity to
earn superior equity returns.
Investors should recognize that both turnover and volatility can be
quite high as the Opportunities Fund attempts to seek out the
correct style (value/growth; large-cap/small-cap) and sectors in
which to invest. This holds especially true when the dominant style
is growth. We believe that to be the case at this time. Currently,
investors should expect very little correlation between the
Opportunities Fund and the S&P 500 on a daily basis, and turnover
will probably remain above average.
Looking forward, the evidence for a shift into value stocks is
mixed. Industry and sector rotation appears likely to continue its
recent frenetic pace. This volatility-producing tug of war should
resolve itself eventually and more stable trending markets should
result. This recent volatility, while unnerving and unwelcome to
most investors, is to be expected as part of the market's infinite
mosaic of patterns, which make investing so challenging--and at
times, so stressful.
/s/ Mark T. Finn /s/ Jonathan F. Finn
Mark T. Finn Jonathan F. Finn
Co-Portfolio Manager Co-Portfolio Manager
LINDNER OPPORTUNITIES FUND
PERFORMANCE GRAPH
-----------------------------------------------------------------
Comparison of change in value of $10,000 invested in the S&P 500
Index and the Lindner Opportunities Fund--Investor Shares since
inception October 11, 1999 to June 30, 2000:
PAST PERFORMANCE IS NOT PREDICTIVE OF FUTURE PERFORMANCE
TOTAL RETURN
For Period Ended June 30, 2000
Since Inception, October 11, 1999 15.19%
19
<PAGE>
<PAGE>
<TABLE>
LINDNER INVESTMENTS
SCHEDULE OF INVESTMENTS - JUNE 30, 2000
<CAPTION>
Number of Shares -
Principal Amount
Name of Issuer and Title of Issue of Bonds Value
--------------------------------------------------- ------------------ -------------
<S> <C> <C>
LINDNER OPPORTUNITIES FUND
--------------------------
COMMON STOCKS (83.83%)
Computer and Electronic Equipment (6.59%)
Cylink Corporation<F*> 2,700 $ 45,225
Netopia, Inc.<F*> 1,100 44,275
Rainbow Technologies, Inc.<F*> 1,300 63,213
-------------
152,713
-------------
Computer Software/Services (2.12%)
Intergraph Corporation<F*> 6,500 49,156
-------------
Electrical Generation (4.45%)
El Paso Electric Company<F*> 3,100 34,681
IDACORP, Inc. 1,000 32,250
WPS Resources Corporation 1,200 36,075
-------------
103,006
-------------
Financials (19.48%)
Astoria Financial Corporation 1,300 33,475
Bank United Corporation 1,000 35,188
Camden Property Trust 1,300 38,188
Capitol Federal Financial 3,400 37,613
Commerce Bancorp, Inc. 800 36,800
Developers Diversified Realty Corporation 2,500 37,344
Downey Financial Corporation 1,200 34,800
Highwoods Properties, Inc. 1,500 36,000
Investors Financial Services Corporation 800 31,750
Merchants New York Bancorp, Inc. 2,100 36,094
People's Bank 1,337 24,567
Trustmark Corporation 1,800 31,388
Washington Federal, Inc. 2,100 38,325
-------------
451,532
-------------
Food and Beverage (6.62%)
Hain Celestial Group, Inc.<F*> 1,400 51,363
Interstate Bakeries Corporation 1,500 21,000
Suiza Foods Corporation 800 39,100
Tootsie Roll Industries, Inc. 1,200 42,000
-------------
153,463
-------------
Healthcare (14.77%)
Coventry Health Care, Inc.<F*> 3,200 42,650
Edwards Lifesciences Corporation<F*> 1,800 34,425
Foundation Health Systems, Inc.<F*> 3,000 39,000
LifePoint Hospitals, Inc.<F*> 1,700 37,825
Medicis Pharmaceutical Corporation<F*> 800 45,600
Mid Atlantic Medical Services, Inc.<F*> 3,000 40,500
Novoste Corporation<F*> 1,000 61,000
Respironics, Inc.<F*> 2,300 41,400
-------------
342,400
-------------
Insurance (5.11%)
Brown & Brown, Inc. 800 41,600
Hilb Rogal & Hamilton Company 1,200 41,625
StanCorp Financial Group, Inc. 1,100 35,338
-------------
118,563
-------------
<PAGE>
<CAPTION>
Number of Shares -
Principal Amount
Name of Issuer and Title of Issue of Bonds Value
--------------------------------------------------- ------------------ -------------
<S> <C> <C>
Natural Gas Pipeline (4.67%)
Energen Corporation 1,600 $ 34,900
MDU Resources Group, Inc. 1,600 34,600
Peoples Energy Corporation 1,200 38,850
-------------
108,350
-------------
Oil & Gas Exploration and Production (3.03%)
Louis Dreyfus Natural Gas Corporation<F*> 1,100 34,444
Stone Energy Corporation<F*> 600 35,850
-------------
70,294
-------------
Paper, Printing and Publishing (1.70%)
E. W. Scripps Company 800 39,400
-------------
Services (7.28%)
Administaff, Inc.<F*> 700 44,450
ADVO, Inc.<F*> 1,100 46,200
Forrester Research, Inc.<F*> 600 43,688
Workflow Management, Inc.<F*> 2,900 34,438
-------------
168,776
-------------
Telecommunications Equipment (2.03%)
Numerex Corporation<F*> 3,800 47,025
-------------
Telecommunications Service (1.84%)
Global Light Telecommunications, Inc.<F*> 3,900 42,652
-------------
Miscellaneous (4.14%) 95,981
-------------
Total Common Stocks (Cost $1,829,077) 1,943,311
-------------
U.S. GOVERNMENT AGENCY SECURITIES (12.87%)
FHLBDN, 8/04/00 $ 200,000 198,791
FNMADN, 7/27/00 100,000 99,541
-------------
Total U.S. Government Agency Securities (Cost
$298,332) 298,332
-------------
Total Investments (Cost $2,127,409) 96.70% 2,241,643
Excess of Other Assets over Liabilities 3.30% 76,605
-------------- -------------
Net Assets 100.00% $ 2,318,248
============== =============
<F*>Non-income producing
FHLBDN = Federal Home Loan Banks Discount Note
FNMADN = Federal National Mortgage Association Discount Note
</TABLE>
20 See Notes to Financial Statements
<PAGE>
PERFORMANCE SUMMARY
The Lindner Market Neutral Fund Investor Shares had a total return
of 19.26% for the fiscal year ended June 30, 2000, and was one of
the highest performers in the market neutral category of funds<F1>.
The fund's benchmark, the 90-day T-bill, returned 5.30% over the
same period. The performance of the S&P 500 Index and Dow Jones
Industrial Average for the fiscal year was 7.25% and -3.31%
respectively.
Over the past 12 months, the fund's performance has borne out the
effectiveness of its market neutral strategy. During both the third
quarter of 1999 and the second quarter of 2000--when the S&P 500
suffered significantly negative returns--the Lindner Market Neutral
Fund produced positive returns of 2.80% and 4.60% respectively.
In fact, the fund experienced positive returns and outperformed its
benchmark in each quarter of the fiscal year. As anticipated, and
planned for, the volatility of the fund has been much less than that
of any of the market indexes. In April 2000, when the overall stock
market experienced one of its worst days in years, the Market
Neutral Fund posted a gain of 2.22% for the month. In contrast, the
NASDAQ Composite and the S&P 500 were down -15.57% and -3.01%,
respectively for the same period.
In early February 2000, the fund's performance was adversely
affected by the write-off in the value of its holdings in Uranium
Resources, Inc., an illiquid issue inherited from the former
"Bulwark Fund." This resulted in a loss of 4.16%. The strong
out-performance of the long portfolio relative to the short
portfolio over the next six weeks more than offset the charge.
During the course of the fiscal year, the fund has been periodically
re-balanced to ensure that our best ideas are represented in the
long portfolio and that the stocks we consider to be the least
promising are held in the short portfolio. Re-balancing also ensures
that the common factor exposure of the fund remains minimal.
The market neutral structure of the fund is designed to protect the
investment against potential downturns in the market. The portfolio
is balanced, including both long and short equity positions, such that
the overall market exposure is dramatically reduced in the
portfolio.
LINDNER MARKET NEUTRAL FUND
Ticker Symbol: LDNBX
PERFORMANCE GRAPH
-------------------------------------------------------------------
Comparison of change in value of $10,000 invested in the 90 Day
T-Bill Index and the Lindner Market Neutral Fund<F*>--Investor
Shares from February 11, 1994 to June 30, 2000 and Institutional
Shares from July 9, 1996 to June 30, 2000:
[Market Neutral Fund graph]
PAST PERFORMANCE IS NOT PREDICTIVE OF FUTURE PERFORMANCE
<TABLE>
AVERAGE ANNUAL TOTAL RETURN
<CAPTION>
For Investor Shares For Institutional Shares
For Periods Ended June 30, 2000 For Periods Ended June 30, 2000
<S> <C> <C> <C>
1 Year 19.26% 1 Year 19.00%
5 Year 2.41% Inception (2.21%)
Inception 2.28%
<FN>
----------
<F*>Before July 1, 1999, this Fund was managed with a different investment
objective and different principal investment strategies.
</TABLE>
/s/ Jeffrey D. Fotta /s/ Thomas F. Lynch
Jeffrey D. Fotta Thomas F. Lynch
Co-Portfolio Manager Co-Portfolio Manager
[FN]
----------
<F1>Morningstar Principia Pro for Mutual Funds July Release ranked the Fund as
number 1 out of 14 funds for the one year period ended June 30, 2000 in the
market neutral category. This is the first year that the Lindner Market
Neutral Fund was included in this category.
21
<PAGE>
<PAGE>
<TABLE>
LINDNER INVESTMENTS
SCHEDULE OF INVESTMENTS - JUNE 30, 2000
<CAPTION>
Number of Shares -
Principal Amount
Name of Issuer and Title of Issue of Bonds Value
--------------------------------------------------- ------------------ ---------------
<S> <C> <C>
LINDNER MARKET NEUTRAL FUND
---------------------------
COMMON STOCKS (67.62%)
Aluminum Production (0.23%)
Alcoa, Inc. 1,700 $ 49,300
---------------
Automobiles and Parts (1.11%)
General Motors Corporation 800 46,450
Lear Corporation<F*> 4,700 94,000
TRW, Inc. 2,300 99,763
---------------
240,213
---------------
Biotechnology (1.11%)
Amgen, Inc.<F*> 700 49,175
Cephalon, Inc.<F*> 1,600 95,800
MedImmune, Inc.<F*> 1,300 96,200
---------------
241,175
---------------
Broadcast/Media (0.43%)
Univision Communications, Inc.<F*> 900 93,150
---------------
Chemicals and Allied Products (1.28%)
Dow Chemical Company 2,900 87,544
Lubrizol Corporation 2,300 48,300
Millenium Chemicals, Inc. 5,400 91,800
PPG Industries, Inc. 1,100 48,744
---------------
276,388
---------------
Computer and Electronic Equipment (2.87%)
Apple Computer, Inc.<F*> 3,000 157,125
Coherent, Inc.<F*> 1,600 134,200
Credence Systems Corporation<F*> 900 49,669
Gateway, Inc.<F*> 1,600 90,800
Hewlett-Packard Company 800 99,900
Sun Microsystems, Inc.<F*> 1,000 90,938
---------------
622,632
---------------
Computer Software/Services (6.07%)
Adobe Systems, Inc. 800 104,000
Amdocs Ltd.<F*> 1,300 99,775
BroadVision, Inc.<F*> 1,900 96,544
Cabletron Systems, Inc.<F*> 4,300 108,575
Cisco Systems, Inc.<F*> 1,500 95,344
Citrix Systems, Inc.<F*> 2,400 45,450
Computer Associates International, Inc. 1,800 92,138
Exodus Communications, Inc.<F*> 2,000 92,125
Ingram Micro, Inc.<F*> 5,900 102,881
Macromedia, Inc.<F*> 900 87,019
Parametric Technology Corporation<F*> 9,500 104,500
RealNetworks, Inc.<F*> 1,900 96,069
Remedy Corporation<F*> 2,000 111,500
Veritas Software Corporation<F*> 700 79,111
---------------
1,315,031
---------------
Construction and Real Estate (0.28%)
Mastec, Inc.<F*> 1,600 61,100
---------------
Electrical Equipment (2.52%)
Advanced Energy Industries, Inc.<F*> 1,800 106,088
KEMET Corporation<F*> 3,100 77,694
Rockwell International Corporation 2,800 88,200
SCI Systems, Inc.<F*> 1,400 54,863
Sensormatic Electronics Corporation<F*> 5,700 90,131
Symbol Technologies, Inc. 1,700 91,800
<PAGE>
<CAPTION>
Number of Shares -
Principal Amount
Name of Issuer and Title of Issue of Bonds Value
--------------------------------------------------- ------------------ ---------------
<S> <C> <C>
Electrical Equipment (continued)
Vishay Intertechnology, Inc.<F*> 1,000 $ 37,938
---------------
546,714
---------------
Electrical Generation (4.34%)
Avista Corporation 2,600 45,338
CMS Energy Corporation 4,300 95,138
DTE Energy Company 3,000 91,688
FirstEnergy Corporation 4,000 93,500
GPU, Inc. 3,500 94,719
Hawaiian Electric Industries, Inc. 1,400 45,938
Niagra Mohawk Holdings, Inc. 7,100 98,956
NSTAR 2,300 93,581
PECO Energy Company 2,300 92,719
Pinnacle West Capital Corporation 2,800 94,850
RGS Energy Group, Inc. 4,200 93,450
---------------
939,877
---------------
Financials (3.76%)
Astoria Financial Corporation 3,800 97,850
Chase Manhattan Corporation 1,100 50,669
Citigroup, Inc. 800 48,200
Huntington Bancshares, Inc. 5,900 93,294
Metris Companies, Inc. 3,400 85,425
North Fork Bancorporation, Inc. 9,600 145,200
Northern Trust Corporation 1,500 97,594
Starwood Hotels & Resorts Worldwide, Inc. 3,100 100,169
Wells Fargo & Company 2,500 96,875
---------------
815,276
---------------
Food and Beverage (1.33%)
ConAgra, Inc. 4,800 91,500
Keebler Foods Company 2,600 96,525
Nabisco Group Holdings Corporation 3,900 101,156
---------------
289,181
---------------
Forest Products (0.43%)
Willamette Industries, Inc. 3,400 92,650
---------------
Freight (0.25%)
C H Robinson Worldwide, Inc. 1,100 54,450
---------------
Hardware & Tools (0.94%)
Black & Decker Coporation 2,800 110,075
Stanley Works 3,900 92,625
---------------
202,700
---------------
Healthcare (4.67%)
Amerisource Health Corporation<F*> 3,500 108,500
Bausch & Lomb, Inc. 600 46,425
Baxter International, Inc. 1,500 105,469
Bristol-Myers Squibb Company 1,800 104,850
First Health Group Corporation<F*> 1,600 52,500
Forest Laboratories, Inc.<F*> 500 50,500
Orthodontic Centers of America, Inc.<F*> 3,900 88,238
Pharmacia & Upjohn, Inc. 1,800 93,038
Quintiles Transnational Corporation<F*> 7,100 100,288
Stryker Corporation 2,400 105,000
Trigon Healthcare, Inc.<F*> 1,900 97,969
Watson Pharmaceuticals, Inc.<F*> 1,100 59,125
---------------
1,011,902
---------------
22 See Notes to Financial Statements
<PAGE>
<PAGE>
<CAPTION>
LINDNER INVESTMENTS
SCHEDULE OF INVESTMENTS - JUNE 30, 2000
Number of Shares -
Principal Amount
Name of Issuer and Title of Issue of Bonds Value
--------------------------------------------------- ------------------ ---------------
<S> <C> <C>
LINDNER MARKET NEUTRAL FUND
---------------------------
Household Products (1.81%)
Colgate-Palmolive Company 1,700 $ 101,788
Fort James Corporation 4,200 97,125
Gillette Company 1,600 55,900
NBTY, Inc.<F*> 7,000 44,625
Whirlpool Corporation 2,000 93,250
---------------
392,688
---------------
Insurance (1.55%)
CIGNA Corporation 1,000 93,500
Marsh & McLennan Companies, Inc. 500 52,219
MONY Group, Inc. 1,500 50,719
St. Paul Companies, Inc. 2,600 88,725
StanCorp Financial Group, Inc. 1,600 51,400
---------------
336,563
---------------
Investment Banking/Brokerage (2.22%)
A.G. Edwards, Inc. 2,600 101,400
Bear Stearns Companies, Inc. 2,400 99,900
Charles Schwab Corporation 2,900 97,513
J. P. Morgan & Company, Inc. 800 88,100
Legg Mason, Inc. 1,900 95,000
---------------
481,913
---------------
Investments (0.64%)
Franklin Resources, Inc. 1,600 48,600
T. Rowe Price Associates, Inc. 2,100 89,250
---------------
137,850
---------------
Leisure/Entertainment (1.14%)
Harley-Davidson, Inc. 2,800 107,800
Time Warner, Inc. 600 45,600
Walt Disney Company 2,400 93,150
---------------
246,550
---------------
Manufacturing (2.22%)
American Standard Companies, Inc.<F*> 2,300 94,300
Cognex Corporation<F*> 1,700 87,975
Donaldson Company, Inc. 2,300 45,425
Mettler - Toledo International, Inc.<F*> 1,400 56,000
Minnesota Mining and Manufacturing Company 1,200 99,000
Tyco International Ltd. 2,100 99,488
---------------
482,188
---------------
Mining (0.44%)
Freeport-McMoRan Copper & Gold, Inc. 10,300 95,275
Uranium Resources, Inc., -
Rule 144A<F*>,<Fr> (Acquired 6/25/97,
Cost $1,150,015) 383,341 0
---------------
95,275
---------------
Natural Gas Pipeline (0.21%)
Enron Corporation 700 45,150
---------------
Oil & Gas Exploration and Production (2.70%)
Devon Energy Corporation 1,700 95,519
Kerr-McGee Corporation 2,500 147,344
Newfield Exploration Company<F*> 1,300 50,863
Noble Affiliates, Inc. 2,700 100,575
Ocean Energy, Inc.<F*> 6,500 92,219
<PAGE>
<CAPTION>
Number of Shares -
Principal Amount
Name of Issuer and Title of Issue of Bonds Value
--------------------------------------------------- ------------------ ---------------
<S> <C> <C>
Oil & Gas Exploration and Production (continued)
Vintage Petroleum, Inc. 4,400 $ 99,275
---------------
585,795
---------------
Oil Refining and Marketing (0.43%)
Conoco, Inc.<F*> 3,800 93,338
---------------
Oilfield Services (0.66%)
BJ Services Company<F*> 1,500 93,750
Nabors Industries, Inc.<F*> 1,200 49,875
---------------
143,625
---------------
Packaging (0.45%)
Temple-Inland, Inc. 2,300 96,600
---------------
Printing and Publishing (0.88%)
Gannett Company, Inc. 1,600 95,700
R.R. Donnelley & Sons Company 4,200 94,763
---------------
190,463
---------------
Restaurants and Food Preparation (0.49%)
Brinker International, Inc.<F*> 3,600 105,300
---------------
Retail (4.81%)
BJ's Wholesale Club, Inc.<F*> 5,100 168,300
Circuit City Stores, Inc. 1,400 46,463
Costco Companies, Inc.<F*> 4,700 155,100
Hand Technologies, Inc.<F*>,<Fr> (Acquired 4/25/97,
Cost $330,000) 528,000 330,000
Office Depot, Inc.<F*> 14,800 92,500
Sears Roebuck & Company 3,100 101,138
The Gap, Inc. 1,600 50,000
Zale Corporation<F*> 2,700 98,550
---------------
1,042,051
---------------
Retail - Specialty (1.62%)
Limited, Inc. 6,900 149,213
Tiffany and Company 1,600 108,000
Venator Group, Inc.<F*> 9,200 94,300
---------------
351,513
---------------
Semiconductors (4.18%)
Altera Corporation<F*> 900 91,744
Amkor Technology, Inc.<F*> 1,100 38,844
Anadigics, Inc.<F*> 4,200 143,063
Celestica, Inc.<F*> 2,000 99,250
Cypress Semiconductor Corporation<F*> 1,000 42,250
KLA-Tencor Corporation<F*> 1,600 93,700
Kulicke & Soffa Industries, Inc.<F*> 1,500 89,063
National Semiconductor Corporation<F*> 2,200 124,850
S3, Inc.<F*> 6,400 94,400
Teradyne, Inc.<F*> 1,200 88,200
---------------
905,364
---------------
Services (2.88%)
Diamond Technology Partners, Inc.<F*> 1,200 105,600
Electronic Data Systems Corporation 1,200 49,500
Gemstar International Group, Ltd.<F*> 1,800 110,616
Learning Tree International, Inc.<F*> 1,600 98,000
Pitney Bowes, Inc. 2,600 104,000
Robert Half International, Inc.<F*> 1,700 48,450
TeleTech Holdings, Inc.<F*> 1,600 49,700
See Notes to Financial Statements 23
<PAGE>
<PAGE>
<CAPTION>
LINDNER INVESTMENTS
SCHEDULE OF INVESTMENTS - JUNE 30, 2000
Number of Shares -
Principal Amount
Name of Issuer and Title of Issue of Bonds Value
--------------------------------------------------- ------------------ ---------------
<S> <C> <C>
LINDNER MARKET NEUTRAL FUND
---------------------------
Services (continued)
TMP Worldwide, Inc.<F*> 800 $ 59,050
---------------
624,916
---------------
Telecommunications Equipment (3.42%)
ADC Telecommunications, Inc.<F*> 1,200 100,650
ADTRAN, Inc.<F*> 800 47,900
CommScope, Inc.<F*> 2,900 118,900
Digital Microwave Corporation<F*> 2,800 106,750
ECI Telecommunications 3,100 110,825
Gilat Satellite Networks Ltd.<F*> 1,300 90,188
Nortel Networks Corporation 1,500 102,375
Tekelec, Inc.<F*> 1,300 62,644
---------------
740,232
---------------
Telecommunications Service (1.88%)
AT & T Corporation 3,000 94,875
Covad Communications Group, Inc.<F*> 5,500 88,688
McLeodUSA, Inc., Class A<F*> 4,000 82,750
US Cellular Corporation<F*> 700 44,100
Western Wireless Corporation<F*> 1,800 98,100
---------------
408,513
---------------
Tobacco Products (0.41%)
UST, Inc. 6,100 89,575
---------------
Transportation (0.96%)
Kansas City Southern Industries, Inc. 1,200 106,425
Ryder System, Inc. 5,400 102,263
---------------
208,688
---------------
Total Common Stocks (Cost $16,275,809) 14,655,889
---------------
U.S. GOVERNMENT AGENCY SECURITIES (27.04%)
FHLBDN, 7/26/00 $ 300,000 298,677
FHLBDN, 8/04/00 600,000 596,373
FHLMCDN, 7/05/00 300,000 299,790
FHLMCDN, 7/18/00 800,000 797,616
FHLMCDN, 8/15/00 2,700,000 2,678,468
FHLMCDN, 8/22/00 1,100,000 1,089,847
FNMADN, 7/18/00 100,000 99,694
---------------
Total U.S. Government Agency Securities (Cost
$5,860,465) 5,860,465
---------------
Total Investments (Cost $22,136,274) 94.66% 20,516,354
Cash Deposits with Broker for Securities Sold Short 1.99% 431,813
Receivable from Brokers for Securities Sold Short 68.80% 14,911,976
Securities Sold Short (67.00%) (14,524,018)
Excess of Other Assets over Liabilities 1.55% 336,898
------------- ---------------
Net Assets 100.00% $ 21,673,023
============= ===============
SCHEDULE OF SECURITIES SOLD SHORT
Adolph Coors Company Class B 800 48,400
Aetna Services, Inc. 700 44,931
Affiliated Computer Services, Inc. 2,900 95,881
Air Products & Chemicals, Inc. 2,900 89,356
<PAGE>
<CAPTION>
Number of Shares -
Principal Amount
Name of Issuer and Title of Issue of Bonds Value
--------------------------------------------------- ------------------ ---------------
<S> <C> <C>
SCHEDULE OF SECURITIES SOLD SHORT (CONTINUED)
Albertson's, Inc. 2,900 $ 96,425
Alkermes, Inc. 2,200 103,675
Allergan, Inc. 1,500 111,750
Amazon.com, Inc. 2,200 79,888
American General Corporation 1,600 97,600
American Greetings Corporation 4,300 81,700
Amerus Life Holdings, Inc. 2,400 49,500
Anheuser-Busch Companies, Inc. 1,300 97,094
Apollo Group, Inc. 3,400 95,200
AT&T Corporation Class A Liberty Media Group Shares 4,000 97,000
ATMI, Inc. 1,100 51,150
Autodesk, Inc. 2,900 100,594
Avon Products, Inc. 2,400 106,800
Banco Santander 6,600 105,600
Bank One Corporation 3,500 92,969
Barrick Gold Corporation 5,500 100,031
BFGoodrich Company 2,800 95,375
Bowater, Inc. 2,100 92,663
Burlington Northern Santa Fe Corporation 2,200 50,463
Cadence Design Systems, Inc. 5,200 105,950
Calpine Corporation 1,800 118,350
Campbell Soup Company 3,300 96,113
Cardinal Health, Inc. 700 51,800
Carrier Access Corporation 1,000 52,875
Casella Waste Systems, Inc. 3,900 41,925
Caterpillar, Inc. 2,800 94,850
CNH Global 8,700 80,475
Central Newspapers, Inc. 900 56,925
Ceridian Corporation 4,000 96,250
CNF Transportation, Inc. 4,100 93,275
Comdisco, Inc. 3,900 87,019
Compaq Computer Corporation 3,600 92,025
Concord Communications, Inc. 1,400 55,825
Concord EFS, Inc. 1,800 46,800
Conectiv, Inc. 3,100 48,244
Creative Technology Ltd. 3,900 93,113
Dana Corporation 4,500 95,344
Deere & Company 2,500 92,500
Dell Computer Corporation 2,000 98,625
Delta & Pine Land Company 2,100 52,631
Descartes Systems Group, Inc. 3,600 110,700
Dial Corporation 7,500 77,813
Diamond Offshore Drilling, Inc. 2,700 94,838
Diebold, Inc. 1,600 44,600
DPL, Inc. 4,400 96,525
DQE, Inc. 2,400 94,950
DST Systems, Inc. 1,200 91,350
E *Trade Group, Inc. 5,600 92,400
Eastman Kodak Company 1,700 101,150
Enhance Financial Services Group, Inc. 3,400 48,875
Ensco International, Inc. 2,800 100,275
Entergy Corporation 3,400 92,438
Enzon, Inc. 2,300 97,750
EOG Resources, Inc. 1,500 50,250
Equifax, Inc. 3,900 102,375
Esterline Technologies Corporation 3,400 50,575
Express Scripts, Inc. 900 55,913
Extreme Networks, Inc. 500 52,750
24 See Notes to Financial Statements
<PAGE>
<PAGE>
<CAPTION>
LINDNER INVESTMENTS
SCHEDULE OF INVESTMENTS - JUNE 30, 2000
Number of Shares -
Principal Amount
Name of Issuer and Title of Issue of Bonds Value
--------------------------------------------------- ------------------ ---------------
<S> <C> <C>
LINDNER MARKET NEUTRAL FUND
---------------------------
SCHEDULE OF SECURITIES SOLD SHORT (CONTINUED)
First Tennessee National Corporation 5,400 $ 89,438
Fleet Boston Corporation 2,600 88,400
Flowserve Corporation 3,100 46,694
Fox Entertainment Group, Inc. 3,300 100,238
FPL Group, Inc. 2,100 103,950
Galileo International, Inc. 3,900 81,413
Georgia-Pacific Corporation 4,300 92,988
Getty Images, Inc. 2,700 100,069
Global Industries, Ltd. 5,700 107,588
Grant Prideco, Inc. 4,600 115,000
H. J. Heinz Company 2,400 105,000
Hartford Financial Services Group, Inc. 1,800 100,688
Hasbro, Inc. 8,900 134,056
Hercules, Inc. 3,100 43,594
Herman Miller, Inc. 3,400 87,975
Hollinger International, Inc. 7,200 98,100
Home Depot, Inc. 2,000 99,875
Hughes Supply, Inc. 2,500 49,375
Human Genome Sciences, Inc. 700 93,363
ICOS Corporation 2,400 105,600
IDT Corporation 2,900 98,419
IMC Global, Inc. 7,000 91,000
Imclone Systems, Inc. 1,200 91,725
IMS Health, Inc. 5,800 104,400
International Business Machines Corporation 800 87,650
International Game Technology 3,600 95,400
International Telecommunications Data System 13,000 130
ISS Group, Inc. 1,200 118,481
ITT Industries, Inc. 1,600 48,600
J. C. Penney Company, Inc. 2,800 51,625
Jabil Circuit, Inc. 2,200 109,175
Jefferson-Pilot Corporation 1,700 95,944
Keane, Inc. 4,800 103,800
Lafarge Corporation 2,000 42,000
Lexmark International Group, Inc. 800 53,800
Lincoln National Corporation 2,700 97,538
Linear Technology Corporation 700 44,756
Lockheed Martin Corporation 4,100 101,731
Mattel, Inc. 7,600 100,225
Maxtor Corporation 8,700 91,894
May Department Stores Company 1,900 45,600
Maytag Corporation 2,600 95,875
MCIWorldcom, Inc. 2,400 110,100
McKesson HBOC 2,300 48,156
Medarex, Inc. 1,300 109,850
Methode Electronics, Inc. 2,400 92,700
Metromedia Fiber Network, Inc. 2,500 99,219
Microchip Technology, Inc. 800 46,612
Millenium Pharmaceuticals, Inc. 800 89,500
Morgan Stanley Dean Witter & Company 1,200 99,900
MRV Communications, Inc. 1,600 107,600
National Oilwell, Inc. 3,300 108,488
Networks Associates, Inc. 4,500 91,688
Newmont Mining Corporation 4,300 92,988
Nike, Inc. Class B 2,700 107,494
Northern States Power Company 6,900 139,294
NVIDIA Corporation 1,200 76,275
Old Republic International Corporation 5,400 89,100
<PAGE>
<CAPTION>
Number of Shares -
Principal Amount
Name of Issuer and Title of Issue of Bonds Value
--------------------------------------------------- ------------------ ---------------
<S> <C> <C>
SCHEDULE OF SECURITIES SOLD SHORT (CONTINUED)
Outback Steakhouse, Inc. 3,600 $ 105,300
Pairgain Technologies, Inc. 1,500 51,281
People's Bank 2,600 47,775
Philip Morris Companies, Inc. 1,900 50,469
PNC Financial Services Group, Inc. 1,900 89,063
Polaris Industries, Inc. 1,600 51,200
Polycom, Inc. 1,100 103,503
Potomac Electric Power Company 3,800 95,000
Premier Parks, Inc. 4,200 95,550
Protective Life Corporation 1,900 50,588
QLT Photo Therapeutics Inc. 1,500 115,969
R&B Falcon Corporation 4,200 98,963
Radisys Corporation 1,000 56,750
Ralston Purina Company 5,000 99,688
Raytheon Company Class B 4,300 82,775
Readers Digest Association, Inc. 2,500 99,375
ReliaStar Financial Corporation 1,000 52,438
RF Micro Devices, Inc. 1,500 131,438
Royal Dutch Petroleum, Inc. 1,600 98,500
SBC Communications, Inc. 3,100 134,075
Sky Financial Group, Inc. 2,900 46,219
SLM Holding Corporation 1,400 52,413
Smith International, Inc. 1,400 101,938
Snyder Communications, Inc. 4,100 97,375
Sprint Corporation 1,700 86,700
Storage Technology Corporation 8,400 91,875
Suntrust Banks, Inc. 2,000 91,375
Synopsys, Inc. 2,200 76,038
TECO Energy, Inc. 2,400 48,150
Teleflex, Inc. 1,400 51,888
Texas Utilities Company 3,100 91,450
Textron, Inc. 1,800 97,763
Timken Company 5,300 98,713
Titan Corporation 2,300 102,925
Trizec Hahn Corporation 5,800 103,675
Turnstone Systems, Inc. 1,000 165,672
Tut Systems, Inc. 800 45,900
Ultramar Diamond Shamrock Corporation 1,900 47,144
Unifi, Inc. 4,000 49,500
Union Planters Corporation 3,400 94,988
United Stationers, Inc. 3,200 103,600
USA Networks, Inc. 4,300 92,988
USX-Marathon Group 1,800 45,113
Veeco Instruments, Inc. 1,600 117,200
VeriSign, Inc. 600 105,900
Viacom, Inc. Class B 1,500 102,281
Viad Corporation 3,500 95,375
Visx, Inc. 1,900 53,300
Wisconsin Energy Corporation 4,800 95,100
Xerox Corporation 4,800 99,600
Xilinx, Inc. 600 49,538
---------------
$ 14,524,018
===============
<FN>
<F*>Non-income producing
<Fr>Denotes security is restricted as to resale. The aggregate value of restricted securities
at June 30, 2000 was $330,000 which represented 1.52% of net assets.
FHLBDN = Federal Home Loan Banks Discount Note
FHLMCDN = Federal Home Loan Mortgage Corporation Discount Note
FNMADN = Federal National Mortgage Association Discount Note
</TABLE>
See Notes to Financial Statements 25
<PAGE>
<PAGE>
LINDNER GOVERNMENT MONEY MARKET FUND
Ticker Symbol: LDGXX
The economic momentum of 1999 carried over into the first
half of 2000 with real GDP growth averaging 6% over the
past fiscal year. That wasn't the only area of growth.
Inflation fears appeared with the resurgence in oil
prices and upward pressure on wages. Over the past
fiscal year, inflation--(as measured by the Consumer
Price Index) gained 3.7%, compared to a level of just
2% in the previous year. With economic growth
remaining robust, the Federal Reserve showed signs of
nervousness; it is becoming clear that some of the
"new era" investment theories have had their
limitations.
Since late 1999 when the Federal Reserve began its
campaign to restrain inflation pressures, the Federal
funds rate has increased from 4.75% to 6.5%.
Market-based yields as measured by the 3- and 12-month
Treasury bills have increased to 5.86% and 6.06%
respectively. As a shareowner of the Lindner
Government Money Market Fund, this trend has resulted
in higher returns for your holdings. By maintaining a
"laddered" portfolio structure with steady maturities,
we were able to consistently take advantage of this
rising rate environment. Once again the Fund finished
in the top quartile (25%) of its peer group during the
past twelve months with a total return of 5.26%<F1>.
The Lindner Government Money Market Fund invests
exclusively in dollar-denominated securities that are
issued or guaranteed by the United States Government.
Bonds of this type are generally considered to have
the least credit risk of securities available to
investors, and are easily purchased and sold because
of the vast size and liquidity of the market. These
investments provided an excellent combination of
safety, liquidity and yield for investors in the money
market account.
Our outlook for the remainder of calendar year 2000
anticipates the pace of economic growth to slow
towards a more moderate level by year-end. Increased
interest rates will start being felt in the real
economy through higher corporate lending costs and
mortgage rates. While the Federal Reserve may raise
the Federal funds rate further from the current 6.5%
rate, we believe the end of this tightening cycle is
near. The Fed's prior actions should serve to further
alleviate any general concerns over any budding
inflation pressures. The Lindner Government Money
Market Fund is well positioned to take advantage of
this environment and is expected to continue its
record of strong performance based on the factors
explained.
/s/ Mark T. Finn
Mark T. Finn
Vice Chairman and
Chief Operating Officer
[FN]
----------
<F1> As measured by Lipper Analytical Services, a
respected provider of data and analysis for mutual
fund companies. The Fund ranked number 25 out of 128
funds based on total returns for the one year period
ended June 30, 2000. The Fund is included in the
Government category of money market funds.
26
<PAGE>
<PAGE>
<TABLE>
LINDNER INVESTMENTS
SCHEDULE OF INVESTMENTS - JUNE 30, 2000
<CAPTION>
Principal Amount
Name of Issuer and Title of Issue of Bonds Value
------------------------------------------------------- ---------------- ----------------
<S> <C> <C>
LINDNER GOVERNMENT MONEY MARKET FUND
------------------------------------
U.S. GOVERNMENT AGENCY SECURITIES (92.07%)
FHLB, 5.50%, 7/14/00 $ 2,200,000 $ 2,198,999
FHLB, 5.625%, 3/19/01 500,000 497,267
FHLB, 5.97%, 12/01/00 200,000 199,002
FHLB, 6.19%, 7/03/00 1,400,000 1,399,962
FHLB, FLOAT RATE, 5/24/01 2,000,000 1,999,271
FHLBDN, 12/22/00 430,000 417,842
FHLBDN, 3/29/01 500,000 476,476
FHLBDN, 7/28/00 275,000 273,863
FHLBDN, 8/18/00 139,000 137,879
FHLMC, 5.00%, 2/15/01 1,000,000 988,314
FHLMC, 5.45%, 5/10/01 150,000 147,981
FHLMC, 5.718%, 7/28/00 100,000 99,957
FHLMCDN, 7/05/00 1,000,000 999,278
FHLMCDN, 7/14/00 1,504,000 1,500,470
FHLMCDN, 8/01/00 275,000 273,693
FHLMCDN, 8/03/00 2,000,000 1,988,065
FHLMCDN, 8/09/00 2,000,000 1,985,917
FNMA, 4.39%, 10/13/00 200,000 198,509
FNMA, 4.45%, 10/16/00 1,000,000 995,045
FNMA, 5.10%, 9/25/00 1,645,000 1,638,073
FNMA, 5.31%, 5/18/01 150,000 147,829
FNMA, 5.49%, 8/18/00 866,000 865,469
FNMA, 5.56%, 7/24/00 765,000 764,816
FNMA, 5.78%, 10/10/00 100,000 99,628
FNMA, 5.8%, 8/17/00 1,000,000 998,701
FNMA, 5.90%, 12/01/00 100,000 99,499
FNMA, 5.90%, 12/19/00 1,250,000 1,247,483
FNMA, 5.97%, 9/25/00 500,000 499,984
FNMA, 6.24%, 9/07/00 1,000,000 998,598
FNMA, 8.25%, 12/18/00 500,000 504,178
FNMA, 9.20%, 9/11/00 500,000 502,209
FNMADN, 7/06/00 1,000,000 999,194
<CAPTION>
Principal Amount
Name of Issuer and Title of Issue of Bonds Value
------------------------------------------------------- ---------------- ----------------
<S> <C> <C>
U.S. GOVERNMENT AGENCY SECURITIES (CONTINUED)
FNMADN, 8/03/00 $ 1,195,000 $ 1,187,958
FNMADN, 8/24/00 264,000 261,418
SLMA, 5.00%, 8/11/00 500,000 499,227
SLMA, 7.82%, 12/15/00 1,000,000 1,004,916
SLMA, FLOAT RATE, 10/19/00 2,000,000 2,000,000
SLMA, FLOAT RATE, 11/16/00 2,000,000 2,000,000
SLMA, FLOAT RATE, 7/20/00 1,000,000 1,000,000
SLMA, FLOAT RATE, 9/21/00 1,000,000 1,000,000
----------------
Total U.S. Government Agency Securities (Cost
$35,096,970) 35,096,970
----------------
TEMPORARY CASH INVESTMENTS (7.09%)
Repurchase Agreements (7.09%)
Donaldson, Lufkin & Jenrette Corporation dated
6/30/00, (Cost $2,704,000) collateralized by
U.S. Government Obligations 2,704,000 2,704,000
----------------
Total Investments (Cost $37,800,970) 99.16% 37,800,970
Excess of Other Assets over Liabilities 0.84% 321,256
--------------- ----------------
Net Assets 100.00% $ 38,122,226
=============== ================
<PAGE>
FHLB = Federal Home Loan Banks
FHLBDN = Federal Home Loan Banks Discount Note
FHLMC = Federal Home Loan Mortgage Corporation
FHLMCDN = Federal Home Loan Mortgage Corporation Discount Note
FNMA = Federal National Mortgage Association
FNMADN = Federal National Mortgage Association Discount Note
SLMA = Student Loan Marketing Association
</TABLE>
27
<PAGE>
<PAGE>
<TABLE>
LINDNER INVESTMENTS
STATEMENTS OF ASSETS AND LIABILITIES
JUNE 30, 2000
<CAPTION>
--------------- ---------------- --------------- --------------- ----------------
LINDNER LINDNER LINDNER LINDNER LINDNER
LARGE-CAP ASSET ALLOCATION UTILITY SMALL-CAP OPPORTUNITIES
FUND FUND FUND FUND FUND
--------------- ---------------- --------------- --------------- ----------------
--------------- ---------------- --------------- --------------- ----------------
<S> <C> <C> <C> <C> <C>
ASSETS
Investment securities, at
value:
Unaffiliated issuers
(identified cost of
$337,809,405,
$436,431,149, $38,729,212,
$23,815,159 and
$2,127,409, respectively) $ 367,733,548 $ 445,489,960 $ 45,092,047 $ 29,306,643 $ 2,241,643
Affiliated issuers
(identified cost $0,
$22,118,556, $0, $0, and
$0, respectively) (Note 5) -- 2,324,850 -- -- --
Cash -- 151,355 87,971 21,538 75,496
Receivables:
Investments sold - long -- 118,309 -- 179,770 --
Dividends and interest 199,237 2,761,913 29,414 4,243 3,472
Fund shares sold 3,500,417 1,676 21,870 -- --
Other assets 17,280 211,496 870 1,226 --
------------- -------------- ------------- ------------- --------------
Total assets 371,450,482 451,059,559 45,232,172 29,513,420 2,320,611
------------- -------------- ------------- ------------- --------------
LIABILITIES
Accounts payable and accrued
liabilities:
Cash overdraft 52,614 -- -- -- --
Investment securities
purchased 27,758,226 789,937 2,986,776 151,118 --
Fund shares redeemed 110,877 873,294 8,027 31,618 --
Management fee (Note 3) 1,140,205 641,818 25,075 16,802 1,717
Transfer agent fee (Note 3) 14,947 20,284 1,826 1,356 142
Administrator fee (Note 3) -- -- -- -- 286
Other 13,781 18,145 1,537 5,988 218
------------- -------------- ------------- -------------- --------------
Total liabilities 29,090,650 2,343,478 3,023,241 206,882 2,363
------------- -------------- ------------- ------------- --------------
NET ASSETS $ 342,359,832 $ 448,716,081 $ 42,208,931 $ 29,306,538 $ 2,318,248
============= ============== ============= ============= ==============
--------------- ---------------- --------------- --------------- ----------------
--------------- ---------------- --------------- --------------- ----------------
NET ASSETS CONSIST OF:
Capital (par value, $.01 per
share, and additional
paid-in capital) $ 283,628,192 $ 574,000,745 $ 30,157,735 $ 22,131,076 $ 2,149,812
Undistributed net investment
income 1,719,454 5,370,143 22,833 13,716 11,014
Accumulated net realized gain
(loss) on investments and
foreign currency
transactions 27,088,043 (119,919,912) 5,665,528 1,670,262 43,188
Net unrealized appreciation
(depreciation) on
investments and translation
of assets and liabilities in
foreign currency 29,924,143 (10,734,895) 6,362,835 5,491,484 114,234
------------- -------------- ------------- ------------- --------------
NET ASSETS APPLICABLE TO
OUTSTANDING SHARES $ 342,359,832 $ 448,716,081 $ 42,208,931 $ 29,306,538 $ 2,318,248
============= ============== ============= ============= ==============
--------------- ---------------- --------------- --------------- ----------------
--------------- ---------------- --------------- --------------- ----------------
NET ASSETS CONSIST OF:
INVESTOR SHARES:
Net Assets $ 342,178,515 $ 448,466,086 $ 42,178,245 $ 27,359,761 $ 2,318,248
Shares Outstanding 20,836,728 21,213,947 2,215,748 2,970,620 168,123
------------- -------------- ------------- ------------- --------------
Net Asset Value, Offering and
Redemption Price Per Share
(Net Assets/Shares
Outstanding) $ 16.42 $ 21.14 $ 19.04 $ 9.21 $ 13.79
============= ============== ============= ============= ==============
<PAGE>
INSTITUTIONAL SHARES:
Net Assets $ 181,317 $ 249,995 $ 30,686 $ 1,946,777
Shares Outstanding 11,133 11,862 1,594 212,171
------------- -------------- ------------- -------------
Net Asset Value, Offering and
Redemption Price Per Share
(Net Assets/Shares
Outstanding) $ 16.29 $ 21.08 $ 19.25 $ 9.18
============= ============== ============= =============
--------------- ---------------- --------------- --------------- ----------------
</TABLE>
28 See Notes to Financial Statements
<PAGE>
<PAGE>
<TABLE>
LINDNER INVESTMENTS
STATEMENTS OF ASSETS AND LIABILITIES
JUNE 30, 2000
<CAPTION>
----------------
LINDNER
MARKET
NEUTRAL
FUND
----------------
----------------
<S> <C>
ASSETS
Investment securities, at value:
Unaffiliated issuers (identified cost of
$22,136,274) $ 20,516,354
Cash 172,033
Receivables:
Investments sold - long 576,930
Dividends and interest 65,420
Fund shares sold 8,953
Investments sold - short 14,911,976
Deposits with brokers for securities sold
short 431,813
Other assets 699
--------------
Total assets 36,684,178
--------------
LIABILITIES
Accounts payable and accrued liabilities:
Investment securities purchased 467,481
Investments sold short, at value
(proceeds $14,911,976) 14,524,018
Management fee (Note 3) 17,573
Transfer agent fee (Note 3) 752
Other 1,331
--------------
Total liabilities 15,011,155
--------------
NET ASSETS $ 21,673,023
==============
----------------
----------------
NET ASSETS CONSIST OF:
Capital (par value, $.01 per share, and
additional paid-in capital) $ 45,513,582
Undistributed net investment income 444,246
Accumulated net realized loss on
investments (23,052,843)
Net unrealized depreciation on investments (1,231,962)
--------------
NET ASSETS APPLICABLE TO OUTSTANDING
SHARES $ 21,673,023
==============
----------------
----------------
NET ASSETS CONSIST OF:
INVESTOR SHARES:
Net Assets $ 21,672,868
Shares Outstanding 3,284,411
--------------
Net Asset Value, Offering and Redemption
Price
Per Share (Net Assets/Shares
Outstanding) $ 6.60
==============
INSTITUTIONAL SHARES:
Net Assets $ 155
Shares Outstanding 22
--------------
Net Asset Value, Offering and Redemption
Price Per Share (Net Assets/Shares
Outstanding) $ 7.03
==============
----------------
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
----------------
LINDNER
GOVERNMENT
MONEY MARKET
FUND
----------------
----------------
<S> <C>
ASSETS
Investment securities, at value $ 37,800,970
Cash 52,718
Interest receivable 384,218
Unamortized organizational expense
(Note 4) 5,835
Other assets 10,296
--------------
Total assets 38,254,037
--------------
LIABILITIES
Accounts payable and accrued liabilities:
Fund shares redeemed 21,505
Dividends 88,644
Organizational Expense 6,955
Administrator fee (Note 3) 6,360
Management fee (Note 3) 4,770
Transfer agent fee (Note 3) 793
Other 2,784
--------------
Total liabilities 131,811
--------------
NET ASSETS $ 38,122,226
==============
----------------
----------------
NET ASSETS CONSIST OF:
Paid-in capital $ 38,122,226
==============
Shares of beneficial interest, $1.00 par
value Unlimited shares authorized,
outstanding 38,122,226
==============
Net Asset Value, Offering and Redemption
Price Per Share (Net Assets/Shares
Outstanding) $ 1.00
==============
----------------
</TABLE>
See Notes to Financial Statements 29
<PAGE>
<PAGE>
<TABLE>
LINDNER INVESTMENTS
STATEMENTS OF OPERATIONS
FOR THE YEAR OR PERIOD ENDED JUNE 30, 2000
<CAPTION>
--------------- ---------------- -------------- -------------- --------------
LINDNER LINDNER LINDNER LINDNER LINDNER
LARGE-CAP ASSET ALLOCATION UTILITY SMALL-CAP OPPORTUNITIES
FUND FUND FUND FUND FUND<F1>
--------------- ---------------- -------------- -------------- --------------
--------------- ---------------- -------------- -------------- --------------
<S> <C> <C> <C> <C> <C>
INVESTMENT INCOME
Income:
Dividends
Unaffiliated issuers (net of
withholding taxes of $11,151,
$32,784, $0, $0, and $2
respectively) $ 2,175,680 $ 16,393,039 $ 467,255 $ 148,910 $ 6,781
Affiliated issuers (non-controlled) 90,188 74,013 -- -- --
Interest (net of withholding taxes of
$0, $4,066, $0, $0, and $0,
respectively) 3,030,318 13,297,956 279,955 319,951 30,102
------------- ------------- ------------ ------------ ------------
Total income 5,296,186 29,765,008 747,210 468,861 36,883
------------- ------------- ------------ ------------ ------------
Expenses:
Management fees (Note 3) 2,336,767 3,286,518 244,769 209,334 12,250
Registration and regulatory fees 25,489 26,618 17,317 16,347 19,216
Professional fees 124,850 200,113 10,082 10,416 456
Custodian fees 59,919 62,086 3,643 2,418 158
Transfer agent fees (Note 3) 272,278 399,960 24,459 25,826 1,057
Shareholder communications 121,932 185,449 9,564 10,220 870
Adminstrator fees (Note 3) -- -- -- -- 2,042
Trustee fees (Note 3) 26,016 42,119 2,245 2,024 85
Report printing 116,560 175,903 9,170 9,972 399
Other expenses 45,928 88,912 2,634 2,809 241
12b-1 fees - Institutional shares 451 5,835 9 4,115 --
Expenses reimbursed by advisor (Note 3) -- -- -- -- (12,928)
------------- ------------- ------------ ------------ ------------
Total expenses 3,130,190 4,473,513 323,892 293,481 23,846
Fees paid indirectly (Note 6) (18,075) (28,875) (1,760) (1,436) (69)
------------- ------------- ------------ ------------ ------------
Net expenses 3,112,115 4,444,638 322,132 292,045 23,777
------------- ------------- ------------ ------------ ------------
Net investment income 2,184,071 25,320,370 425,078 176,816 13,106
------------- ------------- ------------ ------------ ------------
REALIZED AND UNREALIZED GAIN (LOSS) FROM
INVESTMENTS AND FOREIGN CURRENCY
TRANSACTIONS:
Net realized gain (loss) on investments of
unaffiliated issuers 38,091,204 (57,544,654) 6,558,414 3,002,246 (20,166)
Net realized gain (loss) on investments of
affiliated issuers (non-controlled) 13,662,329 (9,389,260) -- -- --
Net realized gain (loss) on option
transactions 2,343,425 1,244,552 (95,501) 117,201 65,240
Net realized loss on foreign currency
transactions (2,416) -- (33) -- --
------------- ------------- ------------ ------------ ------------
Net realized gain (loss) on investments
and foreign currency transactions 54,094,542 (65,689,362) 6,462,880 3,119,447 45,074
------------- ------------- ------------ ------------ ------------
Change in unrealized appreciation on
investments and translation of assets
and liabilities in foreign currencies (24,402,853) 13,755,165 1,366,865 753,501 114,234
------------- ------------- ------------ ------------ ------------
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS $ 31,875,760 $ (26,613,827) $ 8,254,823 $ 4,049,764 $ 172,414
============= ============= ============ ============ ============
--------------- --------------- -------------- -------------- --------------
<FN>
<F1>Investment operations commenced on October 11, 1999.
</TABLE>
30 See Notes to Financial Statements
<PAGE>
<PAGE>
<TABLE>
LINDNER INVESTMENTS
STATEMENTS OF OPERATIONS
FOR THE YEAR ENDED JUNE 30, 2000
<CAPTION>
--------------
LINDNER
MARKET
NEUTRAL
FUND
--------------
--------------
<S> <C>
INVESTMENT INCOME
Income:
Dividends $ 81,183
Interest 921,263
------------
Total income 1,002,446
------------
Expenses:
Management fees (Note 3) 178,317
Registration and regulatory fees 16,289
Dividend expense - short sales 103,652
Professional fees 6,492
Custodian fees 991
Transfer agent fees (Note 3) 14,616
Shareholder communications 6,743
Trustee fees (Note 3) 1,170
Report printing 7,442
Other expenses 7,910
------------
Total expenses 343,622
Fees paid indirectly (Note 6) (886)
------------
Net expenses 342,736
------------
Net investment income 659,710
------------
REALIZED AND UNREALIZED GAIN (LOSS) FROM
INVESTMENTS
Net realized gain on investments of
unaffiliated issuers 5,011,460
Net realized loss on securities sold short (3,252,426)
------------
Net realized gain on investments 1,759,034
------------
Change in unrealized appreciation on
investments 591,553
------------
NET INCREASE IN NET ASSETS RESULTING FROM
OPERATIONS $ 3,010,297
============
--------------
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
---------------
LINDNER
GOVERNMENT
MONEY MARKET
FUND
---------------
<S> <C>
INVESTMENT INCOME
Interest $ 2,466,079
-------------
Expenses:
Administrator fees (Note 3) 87,766
Waiver of administrator fees by advisor (Note 3) (3,292)
Management fees (Note 3) 65,825
Registration and regulatory fees 19,917
Professional fees 9,934
Shareholder communications 10,928
Transfer agent fees (Note 3) 11,942
Organizational expense (Note 4) 4,585
Custodian expense 4,686
Report printing 7,230
Other expenses 2,643
-------------
Total expenses 222,164
-------------
Fees paid indirectly (Note 6) (2,097)
-------------
Net expenses 220,067
-------------
Net Investment Income $ 2,246,012
=============
---------------
</TABLE>
<TABLE>
STATEMENTS OF CHANGES IN NET ASSETS
<CAPTION>
----------------------------------
LINDNER GOVERNMENT
MONEY MARKET FUND
----------------------------------
----------------------------------
For the Year Ended
--------------------------------
June 30, 2000 June 30, 1999
----------------------------------
----------------------------------
<S> <C> <C>
INCREASE IN NET ASSETS:
Net investment income $ 2,246,012 $ 2,217,540
------------ -------------
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income (2,246,012) (2,217,540)
------------ -------------
FUND SHARE TRANSACTIONS:
Net (decrease) increase in net
assets resulting from fund
shares transactions (Note 7) (5,880,860) 1,040,653
------------ -------------
TOTAL (DECREASE) INCREASE IN NET
ASSETS (5,880,860) 1,040,653
Net Assets at the Beginning of the
Period 44,003,086 42,962,433
------------ -------------
Net Assets at the End of the
Period $ 38,122,226 $ 44,003,086
============ =============
----------------------------------
</TABLE>
See Notes to Financial Statements 31
<PAGE>
<PAGE>
<TABLE>
LINDNER INVESTMENTS
STATEMENTS OF CHANGES IN NET ASSETS
<CAPTION>
------------------------------- ------------------------------- ------------------------------
LINDNER LINDNER LINDNER
LARGE-CAP FUND ASSET ALLOCATION FUND UTILITY FUND
------------------------------- ------------------------------- ------------------------------
------------------------------- ------------------------------- ------------------------------
For the Year Ended For the Year Ended For the Year Ended
----------------------------- ----------------------------- ----------------------------
June 30, 2000 June 30, 1999 June 30, 2000 June 30, 1999 June 30, 2000 June 30, 1999
------------------------------- ------------------------------- ------------------------------
------------------------------- ------------------------------- ------------------------------
<S> <C> <C> <C> <C> <C> <C>
INCREASE (DECREASE) IN NET
ASSETS:
OPERATIONS:
Net investment income $ 2,184,071 $ 7,733,853 $ 25,320,370 $ 91,474,222 $ 425,078 $ 713,497
Net realized gain (loss)
on investments and
foreign currency
transactions 54,094,542 (4,765,893) (65,689,362) (54,921,462) 6,462,880 (219,285)
Net increase (decrease)
in unrealized
appreciation on
investments and
translation of assets
and liabilities in
foreign currencies (24,402,853) (144,771,268) 13,755,165 (152,145,130) 1,366,865 (228,703)
------------- -------------- ------------- -------------- ------------ ------------
Net Increase (Decrease)
in Net Assets 31,875,760 (141,803,308) (26,613,827) (115,592,370) 8,254,823 265,509
------------- -------------- ------------- -------------- ------------ ------------
DISTRIBUTIONS TO
SHAREHOLDERS:
From net investment
income:
Investor shares (5,269,271) (12,402,854) (30,080,812) (86,843,840) (438,578) (723,226)
Institutional shares (2,446) (4,770) (111,352) (202,520) (105) (2)
From net realized gain
on investments and
foreign currency
transactions:
Investor shares (20,011,776) (99,667,727) -- (26,512,920) (561,783) (5,463,199)
Institutional shares (9,712) (45,353) -- (18,031) (4) (28)
------------- -------------- ------------- -------------- ------------ ------------
Net decrease in net
assets from
distributions to
shareholders (25,293,205) (112,120,704) (30,192,164) (113,577,311) (1,000,470) (6,186,455)
------------- -------------- ------------- -------------- ------------ ------------
FUND SHARE TRANSACTIONS
(NOTE 7):
Investor shares (97,937,906) (315,718,742) (262,798,612) (619,542,090) 8,582,551 (10,631,848)
Institutional shares (5,740) (80,939) (3,831,788) 1,657,048 30,379 (6,652)
------------- -------------- ------------- -------------- ------------ ------------
Net (Decrease)
Increase from Fund
Share Transactions (97,943,646) (315,799,681) (266,630,400) (617,885,042) 8,612,930 (10,638,500)
------------- -------------- ------------- -------------- ------------ ------------
TOTAL (DECREASE) INCREASE IN
NET ASSETS (91,361,091) (569,723,693) (323,436,391) (847,054,723) 15,867,283 (16,559,446)
Net Assets at the Beginning
of the Year 433,720,923 1,003,444,616 772,152,472 1,619,207,195 26,341,648 42,901,094
------------- -------------- ------------- -------------- ------------ ------------
Net Assets at the End of the
Year $ 342,359,832 $ 433,720,923 $ 448,716,081 $ 772,152,472 $ 42,208,931 $ 26,341,648
============= ============== ============= ============== ============ ============
Undistributed Net Investment
Income Included in Net
Assets at the End of the
Year $ 1,719,454 $ 4,807,100 $ 5,370,143 $ 10,241,937 $ 22,833 $ 36,438
============= ============== ============= ============== ============ ============
------------------------------- ------------------------------- ------------------------------
<PAGE>
<CAPTION>
------------------------------
LINDNER
SMALL-CAP FUND
------------------------------
------------------------------
For the Year Ended
----------------------------
June 30, 2000 June 30, 1999
------------------------------
------------------------------
<S> <C> <C>
INCREASE (DECREASE) IN NET
ASSETS:
OPERATIONS:
Net investment income $ 176,816 $ 404,009
Net realized gain (loss)
on investments and
foreign currency
transactions 3,119,447 (1,289,399)
Net increase (decrease)
in unrealized
appreciation on
investments and
translation of assets
and liabilities in
foreign currencies 753,501 (1,328,864)
------------- ------------
Net Increase (Decrease)
in Net Assets 4,049,764 (2,214,254)
------------- ------------
DISTRIBUTIONS TO
SHAREHOLDERS:
From net investment
income:
Investor shares (345,685) (510,044)
Institutional shares (20,117) (1,854)
From net realized gain
on investments and
foreign currency
transactions:
Investor shares (120,324) (1,766,308)
Institutional shares (7,282) (6,257)
------------- ------------
Net decrease in net
assets from
distributions to
shareholders (493,408) (2,284,463)
------------- ------------
FUND SHARE TRANSACTIONS
(NOTE 7):
Investor shares (13,880,959) (11,590,651)
Institutional shares 95,306 1,294,920
------------- ------------
Net (Decrease)
Increase from Fund
Share Transactions (13,785,653) (10,295,731)
------------- ------------
TOTAL (DECREASE) INCREASE IN
NET ASSETS (10,229,297) (14,794,448)
Net Assets at the Beginning
of the Year 39,535,835 54,330,283
------------- ------------
Net Assets at the End of the
Year $ 29,306,538 $ 39,535,835
============= ============
Undistributed Net Investment
Income Included in Net
Assets at the End of the
Year $ 13,716 $ 202,702
============= ============
------------------------------
</TABLE>
32 See Notes to Financial Statements
<PAGE>
<PAGE>
<TABLE>
LINDNER INVESTMENTS
STATEMENTS OF CHANGES IN NET ASSETS
<CAPTION>
---------------------------- ------------------------------
LINDNER LINDNER
OPPORTUNITIES FUND MARKET NEUTRAL FUND
---------------------------- ------------------------------
---------------------------- ------------------------------
For the Period From For the Year Ended
Inception (October 11, 1999) ----------------------------
to June 30, 2000 June 30, 2000 June 30, 1999
---------------------------- ------------------------------
---------------------------- ------------------------------
<S> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
OPERATIONS:
Net investment income $ 13,106 $ 659,710 $ 831,220
Net realized gain (loss) on investments and
foreign currency transactions 45,074 1,759,034 (2,866,925)
Net increase in unrealized appreciation on
investments and translation of assets and
liabilities in foreign currencies 114,234 591,553 3,122,445
------------- ------------ ------------
Net Increase in Net Assets 172,414 3,010,297 1,086,740
------------- ------------ ------------
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income:
Investor shares (2,092) (575,105) (735,087)
Institutional shares -- (3) (3)
From net realized gain on investments and
foreign currency transactions:
Investor shares (1,886) -- --
Institutional shares -- -- --
------------- ------------ ------------
Net decrease in net assets from distributions
to shareholders (3,978) (575,108) (735,090)
------------- ------------ ------------
FUND SHARE TRANSACTIONS (NOTE 7):
Investor shares 2,149,812 1,035,471 (10,414,209)
Institutional shares -- 31 2
------------- ------------ ------------
Net Increase (Decrease) from Fund Share
Transactions 2,149,812 1,035,502 (10,414,207)
------------- ------------ ------------
TOTAL (DECREASE) INCREASE IN NET ASSETS 2,318,248 3,470,691 (10,062,557)
Net Assets at the Beginning of the Period -- 18,202,332 28,264,889
------------- ------------ ------------
Net Assets at the End of the Period $ 2,318,248 $ 21,673,023 $ 18,202,332
============= ============ ============
Undistributed Net Investment Income Included in Net
Assets at the End of the Period $ 11,014 $ 444,246 $ 359,644
============= ============ ============
---------------------------- ------------------------------
</TABLE>
See Notes to Financial Statements 33
<PAGE>
<PAGE>
LINDNER INVESTMENTS
NOTES TO FINANCIAL STATEMENTS
1. Organization and Significant Accounting Policies
Lindner Investments, a Massachusetts business trust (the
"Trust"), is registered under the Investment Company Act of
1940, as amended, as an open-end management investment company.
Seven series of shares are currently issued by the Trust: (1)
Lindner Large-Cap Fund, (2) Lindner Asset Allocation Fund, (3)
Lindner Utility Fund, (4) Lindner Small-Cap Fund, (5) Lindner
Opportunities Fund, (6) Lindner Market Neutral Fund, and (7)
Lindner Government Money Market Fund, (collectively, the
"Funds"). The Lindner Large-Cap, Lindner Asset Allocation,
Lindner Utility, Lindner Small-Cap and Lindner Market Neutral
Funds offer both Investor and Institutional classes of shares.
Investor shares are sold without a 12b-1 fee. Institutional
shares are sold with a 12b-1 fee. Institutional shares sold have
their own distribution/administrative service plan and certain
expenses are directly allocated to that class.
The following is a summary of significant accounting policies
followed by the Funds.
Security Valuation
The Lindner Large-Cap, Lindner Asset Allocation, Lindner
Utility, Lindner Small-Cap, Lindner Market Neutral, and
Lindner Opportunities Funds value investments in securities
traded on a national securities exchange or in the NASDAQ
Stock Market at the last reported sales price as of the
close of the New York Stock Exchange; securities traded in
the over-the-counter market and listed securities for which
no sale was reported are valued at the mean between the last
reported bid and asked prices. The value of foreign
securities is translated from the local currency into U.S.
dollars at the rate of exchange prevailing on the valuation
date. 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 Lindner Government Money Market Fund and all other funds
that purchase short-term fixed income securities acquired
within 60 days to maturity use the amortized cost method to
value securities, whereby the difference between the
original purchase cost and the maturity value of the issue
are amortized over the holding period of the security.
Investment Income
Dividend income is recognized on the ex-dividend date.
Interest income is recognized on the accrual basis. Dividend
and interest income is recorded net of foreign taxes where
recovery of such taxes is not assured. The company follows
industry practice and records security transactions on the
trade date. Realized gains and losses are recognized on the
identified cost basis.
Foreign Currency Translation
The books and records of the Funds are maintained in U.S.
dollars as follows: (1) the foreign currency market value of
investment securities is translated at the current exchange
rates; and (2) purchases, sales, income, and expenses are
translated at the rate of exchange prevailing on the
respective dates of such transactions.
Reported net realized foreign currency gains or losses arise
from currency gains or losses realized between the trade and
settlement dates on securities transactions, the difference
between the amounts of dividends, interest, and foreign
withholding taxes recorded on the Funds' books, and the U.S.
dollar equivalent of the amounts actually received or paid.
Net unrealized foreign currency gains or losses arise from
changes in the value of assets and liabilities, other than
investments in securities, resulting from changes in the
exchange rate between transaction recording dates and period
end.
Income Taxes
It is the policy of the Funds to distribute all taxable
income to shareholders and to otherwise continue to qualify
as a regulated investment company under provisions of the
Internal Revenue Code. Accordingly, no provision has been
made for federal income tax.
<PAGE>
Repurchase Agreements
The Lindner Government Money Market Fund may invest in
Repurchase Agreements. Securities pledged as collateral for
repurchase agreements are held by the Federal Reserve Bank
and are designated as being held on the Fund's behalf by its
custodian under a book-entry system. The Fund monitors the
adequacy of the collateral daily and can require the seller
to provide additional collateral in the event the market
value of the securities pledged falls below the value of the
repurchase agreement.
34
<PAGE>
<PAGE>
LINDNER INVESTMENTS
1. Organization and Significant Accounting Policies (continued)
Short Sales
The Lindner Market Neutral Fund may invest in short sales of
securities in order to profit from declines in stock prices.
When the fund engages in a short sale, an amount equal to
the proceeds received is reflected as an asset and
equivalent liability. The amount of the liability is marked
to market daily to reflect the market value of the short
sale. The fund's custodian maintains a segregated account of
all securities and cash as collateral for the short sales
(the Special Custody Account). All financial assets within
the Special Custody Account are eligible collateral for
short sale activity. If the price of the borrowed security
increases between the date of the short sale and the date on
which the fund replaces the security, the fund may
experience a loss. Funds other than the Lindner Market
Neutral Fund may engage in short sales of securities if they
own or have the right to acquire, without the payment of
further consideration, an approximately equal amount of such
securities ("short sales against the box").
Dividends and Distributions to Shareholders
The Lindner Government Money Market Fund declares dividends
daily from the total of net investment income on portfolio
securities, and distributes monthly. The Lindner Large-Cap,
Lindner Market Neutral, Lindner Small-Cap, and Lindner
Opportunities Funds declare annual dividends from net
investment income in December. The Lindner Asset Allocation
and Lindner Utility Funds distribute substantially all of
their net investment income through the payment of quarterly
dividends generally declared in March, June, September, and
December. Net realized capital gains, if any, will be
distributed by all funds in December. Designation of sources
of distributions are determined in accordance with income
tax regulations which may differ from generally accepted
accounting principles. These differences are primarily due
to differing treatments in the recognition of income and
expense items for financial statement and tax purposes.
Dividends and distributions to shareholders are recorded on
the ex-dividend date.
Use of Management Estimates
The preparation of financial statements in conformity with
accounting principles generally accepted in the United
States of America requires that management make certain
estimates and assumptions that affect the reported amounts
of assets and liabilities and disclosure of contingent
assets and liabilities at the date of the financial
statements. The reported amounts of revenues and expenses
during the reporting period may also be affected by the
estimates and assumptions management is required to make.
Actual results may differ from those estimates.
Allocation of Income, Expenses and Gains and Losses to Share Classes
The Funds allocate income, expenses (other than class specific
expenses) and gains and losses daily to each class of shares
based upon the relative proportion of shares represented by
each class. Other expenses are charged to each fund on a
specific identification basis. Operating expenses directly
attributable to a specific class are charged against the
operation of that class.
2. Investment Transactions
For the period ended June 30, 2000, aggregate purchases and
sales of investment securities, other than options, securities
sold short, U.S. Government Securities, and short-term
obligations were as follows:
<PAGE>
<TABLE>
-----------------------------------------------------------------------------------------------------------
<CAPTION>
Purchases Sales
------------ ------------
<S> <C> <C>
LINDNER LARGE-CAP FUND $428,385,199 $495,764,202
LINDNER ASSET ALLOCATION FUND 653,022,728 974,623,878
LINDNER UTILITY FUND 30,172,706 21,057,538
LINDNER SMALL-CAP FUND 42,991,711 45,165,652
LINDNER OPPORTUNITIES FUND (FROM INCEPTION DATE,
OCTOBER 11, 1999) 13,091,795 11,243,118
LINDNER MARKET NEUTRAL FUND 167,692,442 162,179,013
-----------------------------------------------------------------------------------------------------------
</TABLE>
35
<PAGE>
<PAGE>
LINDNER INVESTMENTS
2. Investment Transactions (continued)
For the period ended June 30, 2000, aggregate purchases and
sales of U.S. Government securities were as follows:
<TABLE>
-----------------------------------------------------------------------------------------------------------
<CAPTION>
Purchases Sales
------------ ------------
<S> <C> <C>
LINDNER LARGE-CAP FUND $594,906,690 $625,415,389
LINDNER ASSET ALLOCATION FUND 882,987,188 832,219,462
LINDNER UTILITY FUND 54,863,235 52,869,299
LINDNER SMALL-CAP FUND 63,023,510 73,813,158
LINDNER OPPORTUNITIES FUND (FROM INCEPTION DATE,
OCTOBER 11, 1999) 13,035,425 12,766,439
LINDNER MARKET NEUTRAL FUND 92,183,538 96,633,228
LINDNER GOVERNMENT MONEY MARKET FUND 203,623,983 208,301,000
-----------------------------------------------------------------------------------------------------------
</TABLE>
For the period ended June 30, 2000, aggregate purchases and
sales of options securities were as follows:
<TABLE>
-----------------------------------------------------------------------------------------------------------
<CAPTION>
Purchases Sales
------------ ------------
<S> <C> <C>
LINDNER LARGE-CAP FUND $ 10,239,434 $ 12,582,859
LINDNER ASSET ALLOCATION FUND 8,203,470 9,448,022
LINDNER UTILITY FUND 443,497 347,995
LINDNER SMALL-CAP FUND 759,549 876,750
LINDNER OPPORTUNITIES FUND (FROM INCEPTION DATE,
OCTOBER 11, 1999) 488,489 553,728
-----------------------------------------------------------------------------------------------------------
</TABLE>
For the year ended June 30, 2000, the cost of investments
purchased to cover short sales and the proceeds from investments
sold short in the Lindner Market Neutral Fund were $34,833,258
and $43,558,153, respectively.
On June 30, 2000 the composition of unrealized appreciation and
depreciation of investment securities based on the aggregate
cost of investments for federal income tax purposes was as
follows:
<TABLE>
---------------------------------------------------------------------------------------------------------------------------
<CAPTION>
Federal Tax
Appreciation Depreciation Net Cost
------------ ------------ ------------ ------------
<S> <C> <C> <C> <C>
LINDNER LARGE-CAP FUND $52,175,741 ($22,251,598) $ 29,924,143 $337,809,405
LINDNER ASSET ALLOCATION FUND 38,172,451 (48,907,346) (10,734,895) 458,549,705
LINDNER UTILITY FUND 9,591,985 (3,229,150) 6,362,835 38,729,212
LINDNER SMALL-CAP FUND 6,851,077 (1,359,593) 5,491,484 23,815,159
LINDNER OPPORTUNITIES FUND 165,173 (50,939) 114,234 2,127,409
LINDNER MARKET NEUTRAL FUND 962,826 (2,194,788) (1,231,962) 22,136,274
---------------------------------------------------------------------------------------------------------------------------
</TABLE>
On June 30, 2000 Lindner Market Neutral Fund had, available for
federal income tax purposes, capital loss carryforwards
aggregating approximately $22,983,660, which expire $7,089,440
in 2004, $1,792,406 in 2005, $9,095,248 in 2006, and $5,006,566
in 2007.
On June 30, 2000 Lindner Asset Allocation Fund had, available
for federal income tax purposes, capital loss carryforwards
aggregating approximately $55,506,000, which expire $9,749,000
in 2007, $45,757,000 in 2008.
3. Fees and Other Transactions with Affiliates
Management fees for the Lindner Large-Cap Fund are accrued daily
and paid quarterly at an annual rate of 0.7% of the first $50
million of net assets, 0.6% of the next $350 million of net
assets, and 0.5% of the excess of $400 million. The management
fee is subject to adjustment by (plus-minus)0.2% based on the
performance of the Fund relative the performance of the Russell
2000 Composite Index. No performance adjustment was required for
the year ended June 30, 2000.
<PAGE>
Management fees for the Lindner Asset Allocation Fund are
accrued daily and paid quarterly at an annual rate of 0.7% of
the first $50 million of net assets, 0.6% of the next $150
million of net assets, and 0.5% of the excess of $200 million.
Management fees for the Lindner Utility Fund and the Lindner
Small-Cap Fund are accrued daily and paid monthly at an annual
rate of 0.7% of the first $50 million of net assets, and 0.6% of
the next $150 million of net assets.
Management fees for the Lindner Market Neutral Fund are accrued
daily and paid monthly at an annual rate of 1.0% of net assets.
36
<PAGE>
<PAGE>
LINDNER INVESTMENTS
3. Fees and Other Transactions with Affiliates (continued)
Management fees for the Lindner Opportunities Fund and the
Lindner Government Money Market Fund are accrued daily and paid
monthly at an annual rate of 0.9% and 0.15%, respectively of net
assets. The management fee for the Lindner Opportunities Fund is
subject to adjustment by (plus-minus)0.2% based on the
performance of the Fund relative to the performance of the
Standard and Poor's 500 Index. No performance adjustment to the
management fee was made for the period ended June 30, 2000. The
Advisor voluntarily agreed to waive management fees to the
extent necessary to reduce operating expenses of the Lindner
Opportunities Fund to 1.25% of average daily net assets. In
accordance with this agreement the Advisor waived $12,928 of
management fees for the period ended June 30, 2000.
As administrator, Lindner Asset Management, Inc. administers the
Funds' corporate affairs, subject to the supervision of the
Funds' Trustees and, in connection therewith, furnishes the
Funds' with office facilities, together with ordinary clerical
and shareholder services. Administration fees for the Lindner
Government Money Market Fund and Lindner Opportunities Fund are
payable monthly to Lindner Asset Management, Inc. at the annual
percentage rate of 0.20% and 0.15%, respectively of daily net
asset values. The adviser has voluntarily agreed to waive its
administrative service fees to the extent necessary to cause
annual total operating expenses to be not more than 0.50% of
average net assets during the year for the Lindner Government
Money Market Fund. In accordance with this agreement the Advisor
waived $3,292 of management fees for the year ended June 30,
2000.
Lindner Asset Management, Inc., acting as stock transfer agent
and dividend disbursing agent for the Funds, is compensated at a
rate of 92 cents (83 cents for the Lindner Government Money
Market Fund) per shareholder account per month. During the year
ended June 30, 2000, the following transfer agent fees were paid
to Lindner Asset Management, Inc.: Lindner Large-Cap Fund
($204,626), Lindner Asset Allocation Fund ($293,895), Lindner
Utility Fund ($17,981), Lindner Small-Cap Fund ($18,035),
Lindner Market Neutral Fund ($10,263), Lindner Opportunities
Fund ($1,013), and Lindner Government Money Market Fund
($11,112). Certain officers and directors of the Funds are
employees and/or affiliates of Lindner Asset Management, Inc.
The Lindner Large-Cap, Lindner Small-Cap, and Lindner Market
Neutral Funds placed a portion of their portfolio transactions
with a brokerage firm which is an affiliate of the Advisor.
Commissions paid by each fund to this affiliated firm were
$13,926, $6,991, and $600, respectively, for the fiscal year
ended June 30, 2000.
4. Organizational Expense
Expenses of $23,865 incurred in connection with the organization
and registration of the Lindner Government Money Market Fund
were capitalized and are being amortized on a straight line
basis over a period of five years. Of this amount, $4,585 was
amortized and included in expense for the year ended June 30,
2000. Accumulated amortization at June 30, 2000 was $18,030.
5. Transactions with Affiliates
Issuers of whose voting stock the Funds own more than 5% but
less than 25% are classified as "affiliates (non-controlled)".
Following is an analysis of transactions for the year ended June
30, 2000, with "affiliated companies" as defined by the
Investment Company Act of 1940:
<PAGE>
<TABLE>
<CAPTION>
Security Name Activity
-------------------------- ---------------------------------------------------------------- Gain (Loss)
Value at Purchases, Sales, Value Realized
Beginning Additions Reductions at End of Dividend on Sale
of Year at Cost at Cost Year Income of Shares
------------ ----------- ------------ ----------- ----------- ------------
<S> <C> <C> <C> <C> <C> <C>
LINDNER LARGE-CAP FUND
CPI Corporation $ 21,258,600 $ -- $ 10,903,483 $ -- $ 90,188 $ 9,994,928
Vertex Communications
Corp. 4,553,831 -- 2,616,298 -- -- 3,667,401
------------ ----------- ------------ ----------- ----------- ------------
$ 25,812,431 $ -- $ 13,519,781 $ -- $ 90,188 $ 13,662,329
============ =========== ============ =========== =========== ============
LINDNER ASSET ALLOCATION
FUND
IMH Commercial Holdings,
Inc. $ 2,721,950 $ -- $ 4,515,478 $ -- $ 74,013 $ (2,100,131)
LSB Industries $3.25 Conv.
Preferred 6,974,550 -- -- 2,324,850 -- --
Novastar Financial, Inc. -
Rule 144A<F*> 4,250,002 -- 9,020,005 -- -- (7,289,129)
Uranium Resources, Inc.
Rule 144A<F**> -- 4,750,827 -- -- -- --
------------ ----------- ------------ ----------- ----------- ------------
$ 13,946,502 $ 4,750,827 $ 13,535,483 $ 2,324,850 $ 74,013 $ (9,389,260)
============ =========== ============ =========== =========== ============
<FN>
<F*>Received from conversion of preferred at no additional cost.
<F**>Received from conversion of convertible bond at no additional cost.
</TABLE>
37
<PAGE>
<PAGE>
LINDNER INVESTMENTS
6. Expense Offset Arrangements
The Funds have an arrangement whereby custodian expenses are
reduced by maintaining a compensating balance with the
custodian. The Funds could have invested the assets used by the
custodian in an income-producing asset if it had not agreed
to a reduction in fees under the expense offset arrangement. In
the Statements of Operations and the Financial Highlights
(ratio of expenses to average net assets), total expenses
include the expense which had been offset. The following are the
aggregate amounts for the periods ended June 30, 2000, by which
expenses have been increased for financial statement
presentation:
<TABLE>
----------------------------------------------------------------------
<S> <C>
LINDNER LARGE-CAP FUND $18,075
LINDNER ASSET ALLOCATION FUND 28,875
LINDNER UTILITY FUND 1,760
LINDNER SMALL-CAP FUND 1,436
LINDNER OPPORTUNITIES FUND 69
LINDNER MARKET NEUTRAL FUND 886
LINDNER GOVERNMENT MONEY MARKET FUND 2,097
----------------------------------------------------------------------
</TABLE>
7. Capital Stock
The Lindner Large-Cap, Lindner Asset Allocation, Lindner
Utility, Lindner Small-Cap, and Lindner Market Neutral Funds
have authorized unlimited shares of $.01 par value Investor
shares and Institutional shares. The Lindner Opportunities Fund
has authorized unlimited shares of $.01 par value Investor
shares. The Lindner Government Money Market Fund has authorized
unlimited shares of $1 par value Investor shares. Transactions
in shares of capital stock were as follows:
<TABLE>
<CAPTION>
Year Ended June 30, 2000 Year Ended June 30, 1999
-------------------------------- --------------------------------
Shares Amount Shares Amount
------------ ------------- ------------ -------------
<S> <C> <C> <C> <C>
LINDNER LARGE-CAP FUND
Investor shares
---------------
Sold 1,117,969 $ 17,952,261 5,707,136 $ 100,598,943
Dividends and distributions reinvested 1,442,669 23,544,359 6,326,904 102,881,809
Redeemed (8,584,423) (139,434,526) (30,216,463) (519,199,494)
------------ ------------- ------------ -------------
Net decrease (6,023,785) $ (97,937,906) (18,182,423) $(315,718,742)
============ ============= ============ =============
Institutional shares
--------------------
Sold 1,788 $ 29,077 5,379 $ 87,271
Dividends and distributions reinvested 750 12,157 3,097 50,118
Redeemed (2,949) (46,974) (13,556) (218,328)
------------ ------------- ------------ -------------
Net decrease (411) $ (5,740) (5,080) $ (80,939)
============ ============= ============ =============
LINDNER ASSET ALLOCATION FUND
Investor shares
---------------
Sold 538,546 $ 12,499,770 5,423,531 $ 135,308,721
Dividends and distributions reinvested 1,017,108 22,975,759 3,806,572 90,022,541
Redeemed (13,017,845) (298,274,141) (35,145,518) (844,873,352)
------------ ------------- ------------ -------------
Net decrease (11,462,191) $(262,798,612) (25,915,415) $(619,542,090)
============ ============= ============ =============
Institutional shares
--------------------
Sold 26,500 $ 615,776 210,079 $ 4,979,117
Dividends and distributions reinvested 4,967 111,854 9,629 220,547
Redeemed (196,561) (4,559,418) (143,648) (3,542,616)
------------ ------------- ------------ -------------
Net (decrease) increase (165,094) $ (3,831,788) 76,060 $ 1,657,048
============ ============= ============ =============
38
<PAGE>
<PAGE>
<CAPTION>
LINDNER INVESTMENTS
Year Ended June 30, 2000 Year Ended June 30, 1999
-------------------------------- --------------------------------
Shares Amount Shares Amount
------------ ------------- ------------ -------------
<S> <C> <C> <C> <C>
LINDNER UTILITY FUND
Investor shares
---------------
Sold 883,438 $ 16,592,880 1,135,336 $ 16,498,124
Dividends and distributions reinvested 51,550 910,916 462,162 5,621,351
Redeemed (497,523) (8,921,245) (2,375,409) (32,751,323)
------------ ------------- ------------ -------------
Net increase (decrease) 437,465 $ 8,582,551 (777,911) $ (10,631,848)
============ ============= ============ =============
Institutional shares
--------------------
Sold 1,584 $ 30,445 -- $ --
Dividends and distributions reinvested 6 107 2 20
Redeemed (9) (173) (493) (6,672)
------------ ------------- ------------ -------------
Net increase (decrease) 1,581 $ 30,379 (491) $ (6,652)
============ ============= ============ =============
LINDNER SMALL-CAP FUND
Investor shares
---------------
Sold 717,964 $ 5,969,231 2,905,813 $ 22,309,033
Dividends and distributions reinvested 55,389 444,778 299,365 2,173,049
Redeemed (2,507,676) (20,294,968) (4,877,919) (36,072,733)
------------ ------------- ------------ -------------
Net decrease (1,734,323) $ (13,880,959) (1,672,741) $ (11,590,651)
============ ============= ============ =============
Institutional shares
--------------------
Sold 38,466 $ 342,700 195,712 $ 1,375,641
Dividends and distributions reinvested 329 2,632 1,053 7,643
Redeemed (29,553) (250,026) (11,937) (88,364)
------------ ------------- ------------ -------------
Net increase 9,242 $ 95,306 184,828 $ 1,294,920
============ ============= ============ =============
LINDNER MARKET NEUTRAL FUND
Investor shares
---------------
Sold 2,269,124 $ 14,180,360 1,985,070 $ 11,564,233
Dividends and distributions reinvested 90,517 552,154 121,616 693,210
Redeemed (2,257,168) (13,697,043) (3,927,364) (22,671,652)
------------ ------------- ------------ -------------
Net increase (decrease) 102,473 $ 1,035,471 (1,820,678) $ (10,414,209)
============ ============= ============ =============
Institutional shares
--------------------
Sold 9 $ 60 -- $ --
Dividends and distributions reinvested -- 2 -- 2
Redeemed (5) (31) -- --
------------ ------------- ------------ -------------
Net increase 4 $ 31 -- $ 2
============ ============= ============ =============
LINDNER GOVERNMENT MONEY MARKET FUND
Investor shares
---------------
Sold 41,805,734 $ 41,805,734 120,306,779 $ 120,306,779
Dividends and distributions reinvested 1,282,158 1,282,158 1,557,680 1,557,680
Redeemed (48,968,752) (48,968,752) (120,823,806) (120,823,806)
------------ ------------- ------------ -------------
Net (decrease) increase (5,880,860) $ (5,880,860) 1,040,653 $ 1,040,653
============ ============= ============ =============
<PAGE>
<CAPTION>
Period from inception
(October 11, 1999)
to June 30, 2000
--------------------------------
Shares Amount
------------ -------------
<S> <C> <C>
LINDNER OPPORTUNITIES FUND
Investor shares
---------------
Sold 186,856 $ 2,405,439
Dividends and distributions reinvested 304 3,963
Redeemed (19,037) (259,590)
------------ -------------
Net increase 168,123 $ 2,149,812
============ =============
</TABLE>
39
<PAGE>
<PAGE>
<TABLE>
LINDNER INVESTMENTS
FINANCIAL HIGHLIGHTS
LINDNER LARGE-CAP FUND
(SELECTED DATA FOR A SHARE OUTSTANDING THROUGHOUT THE INDICATED PERIOD)
<CAPTION>
YEARS ENDED JUNE 30
-------------------------------------------------------------------
2000 1999 1998 1997 1996
----------- ----------- ----------- ----------- -----------
<S> <C> <C> <C> <C> <C>
INVESTOR
Net asset value, beginning of period $16.14 $22.27 $25.98 $26.39 $23.33
INCOME FROM INVESTMENT OPERATIONS
Net investment income 0.13 0.29 0.38 0.36 0.40
Net realized and unrealized gains (losses) on
investments 1.25 (3.36) (0.27) 2.72 4.47
----------- ----------- ----------- ----------- -----------
TOTAL FROM INVESTMENT OPERATIONS 1.38 (3.07) 0.11 3.08 4.87
----------- ----------- ----------- ----------- -----------
LESS DISTRIBUTIONS
Dividends from net investment income (0.23) (0.32) (0.34) (0.39) (0.47)
Dividends from net realized gains (0.87) (2.74) (3.48) (3.10) (1.34)
----------- ----------- ----------- ----------- -----------
TOTAL DISTRIBUTIONS (1.10) (3.06) (3.82) (3.49) (1.81)
----------- ----------- ----------- ----------- -----------
Change in net asset value 0.28 (6.13) (3.71) (0.41) 3.06
----------- ----------- ----------- ----------- -----------
NET ASSET VALUE, END OF PERIOD $16.42 $16.14 $22.27 $25.98 $26.39
=========== =========== =========== =========== ===========
Total return 8.61% (13.66%) 0.31% 12.50% 21.95%
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets 0.82% 0.57% 0.44% 0.44% 0.63%
Ratio of net investment income to average net assets 0.57% 1.27% 1.29% 1.39% 1.53%
Portfolio turnover rate 129.68% 53.41% 44.43% 36.39% 39.49%
Net assets, end of period (in millions) $342 $434 $1,003 $1,495 $1,446
<CAPTION>
YEARS ENDED JUNE 30
-----------------------------------------------------
2000 1999 1998 1997<F1>
----------- ----------- ----------- -----------
<S> <C> <C> <C> <C>
INSTITUTIONAL
Net asset value, beginning of period $16.02 $22.20 $25.94 $26.39
INCOME FROM INVESTMENT OPERATIONS
Net investment income 0.12 0.28 0.35 0.34
Net realized and unrealized gains (losses) on
investments 1.24 (3.41) (0.30) 2.68
----------- ----------- ----------- -----------
TOTAL FROM INVESTMENT OPERATIONS 1.36 (3.13) 0.05 3.02
----------- ----------- ----------- -----------
LESS DISTRIBUTIONS
Dividends from net investment income (0.22) (0.31) (0.31) (0.37)
Dividends from net realized gains (0.87) (2.74) (3.48) (3.10)
----------- ----------- ----------- -----------
TOTAL DISTRIBUTIONS (1.09) (3.05) (3.79) (3.47)
----------- ----------- ----------- -----------
Change in net asset value 0.27 (6.18) (3.74) (0.45)
----------- ----------- ----------- -----------
NET ASSET VALUE, END OF PERIOD $16.29 $16.02 $22.20 $25.94
=========== =========== =========== ===========
Total return 8.55% (14.01%) 0.08% 15.36%<F2>
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets 1.07% 0.85% 0.75% 0.46%
Ratio of net investment income to average net assets 0.35% 1.13% 1.05% 1.29%
Portfolio turnover rate 129.68% 53.41% 44.43% 36.39%
Net assets, end of period (in thousands) $181 $185 $369 $102
<FN>
<F1>For the period July 12, 1996 (initial purchase) to June 30, 1997.
<F2>Total return for periods of less than one year are not annualized. Total
return is the percentage increase in value for a period, assuming initial
investment at the day before the start of the period and assuming all
dividends and distributions were reinvested and a redemption at the net
asset value on the last day of a period.
</TABLE>
40
<PAGE>
<PAGE>
<TABLE>
LINDNER INVESTMENTS
FINANCIAL HIGHLIGHTS
LINDNER ASSET ALLOCATION FUND
(SELECTED DATA FOR A SHARE OUTSTANDING THROUGHOUT THE INDICATED PERIOD)
<CAPTION>
YEARS ENDED JUNE 30
-------------------------------------------------------------------------------
2000 1999 1998 1997 1996
----------- ----------- ----------- ----------- -----------
<S> <C> <C> <C> <C> <C>
INVESTOR
Net asset value, beginning of period $23.50 $27.59 $27.94 $28.07 $26.00
INCOME FROM INVESTMENT OPERATIONS
Net investment income 1.07 2.16 1.83 1.63 1.80
Net realized and unrealized (losses)
gains on investments (2.30) (3.80) 2.02 0.70 2.29
----------- ----------- ----------- ----------- -----------
TOTAL FROM INVESTMENT OPERATIONS (1.23) (1.64) 3.85 2.33 4.09
----------- ----------- ----------- ----------- -----------
LESS DISTRIBUTIONS
Dividends from net investment income (1.13) (1.95) (1.71) (1.68) (1.79)
Dividends from net realized gains -- (0.50) (2.49) (0.78) (0.23)
----------- ----------- ----------- ----------- -----------
TOTAL DISTRIBUTIONS (1.13) (2.45) (4.20) (2.46) (2.02)
----------- ----------- ----------- ----------- -----------
Change in net asset value (2.36) (4.09) (0.35) (0.13) 2.07
----------- ----------- ----------- ----------- -----------
NET ASSET VALUE, END OF PERIOD $21.14 $23.50 $27.59 $27.94 $28.07
=========== =========== =========== =========== ===========
Total return (5.48%) (5.57%) 14.75% 8.75% 16.14%
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets 0.73% 0.66% 0.61% 0.60% 0.60%
Ratio of net investment income to
average net assets 4.14% 8.03% 6.29% 5.74% 6.62%
Portfolio turnover rate 124.63% 31.74% 28.56% 40.32% 30.24%
Net assets, end of period (in millions) $448 $768 $1,616 $2,017 $2,293
<CAPTION>
YEARS ENDED JUNE 30
--------------------------------------------------------------
2000 1999 1998 1997<F1>
----------- ----------- ----------- -----------
<S> <C> <C> <C> <C>
INSTITUTIONAL
Net asset value, beginning of period $23.41 $27.53 $27.90 $28.07
INCOME FROM INVESTMENT OPERATIONS
Net investment income 0.93 2.15 1.78 1.61
Net realized and unrealized (losses)
gains on investments (2.27) (3.83) 2.00 0.66
----------- ----------- ----------- -----------
TOTAL FROM INVESTMENT OPERATIONS (1.34) (1.68) 3.78 2.27
----------- ----------- ----------- -----------
LESS DISTRIBUTIONS
Dividends from net investment income (0.99) (1.94) (1.66) (1.66)
Dividends from net realized gains -- (0.50) (2.49) (0.78)
----------- ----------- ----------- -----------
TOTAL DISTRIBUTIONS (0.99) (2.44) (4.15) (2.44)
----------- ----------- ----------- -----------
Change in net asset value (2.33) (4.12) (0.37) (0.17)
----------- ----------- ----------- -----------
NET ASSET VALUE, END OF PERIOD $21.08 $23.41 $27.53 $27.90
=========== =========== =========== ===========
Total return (5.93%) (5.74%) 14.49% 9.84%<F2>
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets 0.98% 0.90% 0.88% 0.85%
Ratio of net investment income to
average net assets 4.36% 7.64% 6.14% 5.69%
Portfolio turnover rate 124.63% 31.74% 28.56% 40.32%
Net assets, end of period (in thousands) $250 $4,143 $2,777 $2,010
<FN>
<F1>For the period July 9, 1996 (initial purchase) to June 30, 1997.
<F2>Total return for periods of less than one year are not annualized. Total
return is the percentage increase in value for a period, assuming initial
investment at the day before the start of the period and assuming all
dividends and distributions were reinvested and a redemption at the net
asset value on the last day of a period.
</TABLE>
41
<PAGE>
<PAGE>
<TABLE>
LINDNER INVESTMENTS
FINANCIAL HIGHLIGHTS
LINDNER UTILITY FUND
(SELECTED DATA FOR A SHARE OUTSTANDING THROUGHOUT THE INDICATED PERIOD)
<CAPTION>
YEARS ENDED JUNE 30
-----------------------------------------------------------------------
2000 1999 1998 1997 1996
----------- ----------- ----------- ----------- -----------
<S> <C> <C> <C> <C> <C>
INVESTOR
Net asset value, beginning of period $14.81 $16.78 $15.75 $14.20 $10.77
INCOME FROM INVESTMENT OPERATIONS
Net investment income 0.21 0.33 0.37 0.39 0.35
Net realized and unrealized gains on investments 4.55 0.44 1.96 1.60 3.42
----------- ----------- ----------- ----------- -----------
TOTAL FROM INVESTMENT OPERATIONS 4.76 0.77 2.33 1.99 3.77
----------- ----------- ----------- ----------- -----------
LESS DISTRIBUTIONS
Dividends from net investment income (0.22) (0.33) (0.37) (0.42) (0.34)
Dividends from net realized gains (0.31) (2.41) (0.93) (0.02) --
----------- ----------- ----------- ----------- -----------
TOTAL DISTRIBUTIONS (0.53) (2.74) (1.30) (0.44) (0.34)
----------- ----------- ----------- ----------- -----------
Change in net asset value 4.23 (1.97) 1.03 1.55 3.43
----------- ----------- ----------- ----------- -----------
NET ASSET VALUE, END OF PERIOD $19.04 $14.81 $16.78 $15.75 $14.20
=========== =========== =========== =========== ===========
Total return 32.49% 8.62% 15.53% 14.29% 35.39%
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets 0.93% 0.97% 0.91% 0.89% 0.95%
Ratio of net investment income to average net
assets 1.22% 2.40% 2.21% 2.81% 2.87%
Portfolio turnover rate 69.46% 137.51% 99.37% 86.44% 98.58%
Net assets, end of period (in millions) $42 $26 $43 $47 $32
<CAPTION>
YEARS ENDED JUNE 30
--------------------------------------------------------
2000 1999 1998 1997<F1>
----------- ----------- ----------- -----------
<S> <C> <C> <C> <C>
INSTITUTIONAL
Net asset value, beginning of period $14.96 $16.84 $15.74 $14.20
INCOME FROM INVESTMENT OPERATIONS
Net investment income 0.17 0.19 0.26 0.27
Net realized and unrealized gains on investments 4.61 0.53 2.03 1.60
----------- ----------- ----------- -----------
TOTAL FROM INVESTMENT OPERATIONS 4.78 0.72 2.29 1.87
----------- ----------- ----------- -----------
LESS DISTRIBUTIONS
Dividends from net investment income (0.18) (0.19) (0.26) (0.31)
Dividends from net realized gains (0.31) (2.41) (0.93) (0.02)
----------- ----------- ----------- -----------
TOTAL DISTRIBUTIONS (0.49) (2.60) (1.19) (0.33)
----------- ----------- ----------- -----------
Change in net asset value 4.29 (1.88) 1.10 1.54
----------- ----------- ----------- -----------
NET ASSET VALUE, END OF PERIOD $19.25 $14.96 $16.84 $15.74
=========== =========== =========== ===========
Total return 32.29% 7.99% 15.23% 14.52%<F2>
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets 0.94% 1.30% 1.22% 0.75%
Ratio of net investment income to average net
assets 1.12% 2.70% 1.99% 2.42%
Portfolio turnover rate 69.46% 137.51% 99.37% 86.44%
Net assets, end of period (in thousands) $31 $0.2 $9 $54
<FN>
<F1>For the period August 30, 1996 (initial purchase) to June 30, 1997.
<F2>Total return for periods of less than one year are not annualized. Total
return is the percentage increase in value for a period, assuming initial
investment at the day before the start of the period and assuming all
dividends and distributions were reinvested and a redemption at the net
asset value on the last day of a period.
</TABLE>
42
<PAGE>
<PAGE>
<TABLE>
LINDNER INVESTMENTS
FINANCIAL HIGHLIGHTS
LINDNER SMALL-CAP FUND
(SELECTED DATA FOR A SHARE OUTSTANDING THROUGHOUT THE INDICATED PERIOD)
<CAPTION>
YEARS ENDED JUNE 30
-----------------------------------------------------------------------
2000 1999 1998 1997 1996
----------- ----------- ----------- ----------- -----------
<S> <C> <C> <C> <C> <C>
INVESTOR
Net asset value, beginning of period $8.06 $8.49 $7.67 $6.15 $5.46
INCOME FROM INVESTMENT OPERATIONS
Net investment income 0.07 0.08 0.09 0.04 --
Net realized and unrealized gains (losses) on
investments 1.22 (0.12) 1.07 1.49 1.30
----------- ----------- ----------- ----------- -----------
TOTAL FROM INVESTMENT OPERATIONS 1.29 (0.04) 1.16 1.53 1.30
----------- ----------- ----------- ----------- -----------
LESS DISTRIBUTIONS
Dividends from net investment income (0.10) (0.08) (0.04) (0.01) --
Dividends from net realized gains (0.04) (0.31) (0.30) -- (0.61)
----------- ----------- ----------- ----------- -----------
TOTAL DISTRIBUTIONS (0.14) (0.39) (0.34) (0.01) (0.61)
----------- ----------- ----------- ----------- -----------
Change in net asset value 1.15 (0.43) 0.82 1.52 0.69
----------- ----------- ----------- ----------- -----------
NET ASSET VALUE, END OF PERIOD $9.21 $8.06 $8.49 $7.67 $6.15
=========== =========== =========== =========== ===========
Total return 16.26% 0.11% 15.24% 24.96% 25.70%
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets 0.97% 0.94% 0.87% 0.96% 1.22%
Ratio of net investment income to average net
assets 0.61% 0.99% 1.13% 0.46% (0.04%)
Portfolio turnover rate 174.02% 65.98% 24.52% 49.49% 103.05%
Net assets, end of period (in millions) $27 $38 $54 $25 $10
<CAPTION>
YEARS ENDED JUNE 30
--------------------------------------------------------
2000 1999 1998 1997<F1>
----------- ----------- ----------- -----------
<S> <C> <C> <C> <C>
INSTITUTIONAL
Net asset value, beginning of period $8.04 $8.48 $7.67 $6.15
INCOME FROM INVESTMENT OPERATIONS
Net investment income 0.06 0.08 0.08 0.04
Net realized and unrealized gains (losses) on
investments 1.22 (0.13) 1.06 1.49
----------- ----------- ----------- -----------
TOTAL FROM INVESTMENT OPERATIONS 1.28 (0.05) 1.14 1.53
----------- ----------- ----------- -----------
LESS DISTRIBUTIONS
Dividends from net investment income (0.10) (0.08) (0.03) (0.01)
Dividends from net realized gains (0.04) (0.31) (0.30) --
----------- ----------- ----------- -----------
TOTAL DISTRIBUTIONS (0.14) (0.39) (0.33) (0.01)
----------- ----------- ----------- -----------
Change in net asset value 1.14 (0.44) 0.81 1.52
----------- ----------- ----------- -----------
NET ASSET VALUE, END OF PERIOD $9.18 $8.04 $8.48 $7.67
=========== =========== =========== ===========
Total return 16.12% (0.07%) 15.02% 21.21%<F2>
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets 1.20% 1.16% 1.31% 0.59%
Ratio of net investment income to average net
assets 0.33% 1.44% 0.99% 0.26%
Portfolio turnover rate 174.02% 65.98% 24.52% 49.49%
Net assets, end of period (in thousands) $1,947 $1,631 $154 $0.2
<FN>
<F1>For the period November 1, 1996 (initial purchase) to June 30, 1997.
<F2>Total return for periods of less than one year are not annualized. Total
return is the percentage increase in value for a period, assuming initial
investment at the day before the start of the period and assuming all
dividends and distributions were reinvested and a redemption at the net
asset value on the last day of a period.
</TABLE>
43
<PAGE>
<PAGE>
<TABLE>
LINDNER INVESTMENTS
FINANCIAL HIGHLIGHTS
LINDNER OPPORTUNITIES FUND
(SELECTED DATA FOR A SHARE OUTSTANDING THROUGHOUT THE INDICATED PERIOD)
<CAPTION>
FOR THE PERIOD
FROM INCEPTION
(OCTOBER 11, 1999)
TO JUNE 30, 2000<F1>
--------------------
<S> <C>
Net asset value, beginning of period $12.00
INCOME FROM INVESTMENT OPERATIONS
Net investment income 0.08
Net realized and unrealized gains on investments 1.74
-----------
TOTAL FROM INVESTMENT OPERATIONS 1.82
-----------
LESS DISTRIBUTIONS
Dividends from net investment income (0.01)
Dividends from net realized gains (0.02)
-----------
TOTAL DISTRIBUTIONS (0.03)
-----------
Change in net asset value 1.79
-----------
NET ASSET VALUE, END OF PERIOD $13.79
===========
Total return<F2> 15.19%
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets without
waivers 1.90%
Ratio of expenses to average net assets 1.25%
Ratio of net investment income to average net
assets 0.93%
Portfolio turnover rate 1,104.73%
Net assets, end of period (in millions) $2.3
<FN>
<F1>Operations commenced on October 11, 1999.
<F2>Total return for periods of less than one year are not annualized. Total
return is the percentage increase in value for a period, assuming initial
investment at the day before the start of the period and assuming all
dividends and distributions were reinvested and a redemption at the net
asset value on the last day of a period.
</TABLE>
44
<PAGE>
<PAGE>
<TABLE>
LINDNER INVESTMENTS
FINANCIAL HIGHLIGHTS
LINDNER MARKET NEUTRAL FUND
(SELECTED DATA FOR A SHARE OUTSTANDING THROUGHOUT THE INDICATED PERIOD)
<CAPTION>
YEARS ENDED JUNE 30
-----------------------------------------------------------------------
2000 1999 1998 1997 1996
----------- ----------- ----------- ----------- -----------
<S> <C> <C> <C> <C> <C>
INVESTOR
Net asset value, beginning of period $5.72 $5.65 $6.70 $8.36 $7.09
INCOME FROM INVESTMENT OPERATIONS
Net investment income 0.23 0.23 0.23 0.29 0.26
Net realized and unrealized gains (losses) on
investments 0.86 0.01 (0.89) (1.81) 1.32
----------- ----------- ----------- ----------- -----------
TOTAL FROM INVESTMENT OPERATIONS 1.09 0.24 (0.66) (1.52) 1.58
----------- ----------- ----------- ----------- -----------
LESS DISTRIBUTIONS
Dividends from net investment income (0.21) (0.17) (0.39) (0.14) (0.31)
Dividends from net realized gains -- -- -- -- --
----------- ----------- ----------- ----------- -----------
TOTAL DISTRIBUTIONS (0.21) (0.17) (0.39) (0.14) (0.31)
----------- ----------- ----------- ----------- -----------
Change in net asset value 0.88 0.07 (1.05) (1.66) 1.27
----------- ----------- ----------- ----------- -----------
NET ASSET VALUE, END OF PERIOD $6.60 $5.72 $5.65 $6.70 $8.36
=========== =========== =========== =========== ===========
Total return 19.26% 4.29% (10.08%) (18.43%) 23.44%
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets 1.93% 1.45% 1.23% 1.20% 1.24%
Ratio of net investment income to average net
assets 3.71% 3.46% 1.66% 3.86% 2.45%
Portfolio turnover rate 817.43% 104.92% 109.32% 457.57% 139.82%
Net assets, end of period (in millions) $22 $18 $28 $68 $62
<CAPTION>
YEARS ENDED JUNE 30
--------------------------------------------------------
2000 1999 1998 1997<F1>
----------- ----------- ----------- -----------
<S> <C> <C> <C> <C>
INSTITUTIONAL
Net asset value, beginning of period $6.09 $6.02 $6.67 $8.36
INCOME FROM INVESTMENT OPERATIONS
Net investment income 0.22 0.23 (0.16) 0.26
Net realized and unrealized gains (losses) on
investments 0.92 0.01 (0.49) (1.81)
----------- ----------- ----------- -----------
TOTAL FROM INVESTMENT OPERATIONS 1.14 0.24 (0.65) (1.55)
----------- ----------- ----------- -----------
LESS DISTRIBUTIONS
Dividends from net investment income (0.20) (0.17) -- (0.14)
Dividends from net realized gains -- -- -- --
----------- ----------- ----------- -----------
TOTAL DISTRIBUTIONS (0.20) (0.17) -- (0.14)
----------- ----------- ----------- -----------
Change in net asset value 0.94 0.07 (0.65) (1.69)
----------- ----------- ----------- -----------
NET ASSET VALUE, END OF PERIOD $7.03 $6.09 $6.02 $6.67
=========== =========== =========== ===========
Total return 19.00% 4.02% (9.75%) (18.61%)<F2>
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets 1.12% 0.96% 1.86% 1.37%
Ratio of net investment income to average net
assets 3.61% 3.13% 16.68% 4.45%
Portfolio turnover rate 817.43% 104.92% 109.32% 457.57%
Net assets, end of period (in thousands) $0.2 $0.1 $0.1 $1.6
<FN>
<F1>For the period July 9, 1996 (initial purchase) to June 30, 1997.
<F2>Total return for periods of less than one year are not annualized. Total
return is the percentage increase in value for a period, assuming initial
investment at the day before the start of the period and assuming all
dividends and distributions were reinvested and a redemption at the net
asset value on the last day of a period.
</TABLE>
45
<PAGE>
<PAGE>
<TABLE>
LINDNER INVESTMENTS
FINANCIAL HIGHLIGHTS
LINDNER GOVERNMENT MONEY MARKET FUND
(SELECTED DATA FOR A SHARE OUTSTANDING THROUGHOUT THE INDICATED PERIOD)
<CAPTION>
YEARS ENDED JUNE 30
--------------------------------------------------------
2000 1999 1998 1997<F1>
----------- ----------- ----------- -----------
<S> <C> <C> <C> <C>
Net asset value, beginning of period $1.00 $1.00 $1.00 $1.00
INCOME FROM INVESTMENT OPERATIONS
Net investment income 0.05 0.05 0.05 0.05
----------- ----------- ----------- -----------
TOTAL FROM INVESTMENT OPERATIONS 0.05 0.05 0.05 0.05
----------- ----------- ----------- -----------
LESS DISTRIBUTIONS
Dividends from net investment income (0.05) (0.05) (0.05) (0.05)
----------- ----------- ----------- -----------
Change in net asset value 0.00 0.00 0.00 0.00
----------- ----------- ----------- -----------
NET ASSET VALUE, END OF PERIOD $1.00 $1.00 $1.00 $1.00
=========== =========== =========== ===========
Total return 5.26% 4.70% 5.21% 5.02%<F2>
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets without
waivers 0.51% 0.53% 0.52% 0.43%
Ratio of expenses to average net assets 0.50% 0.50% 0.50% 0.43%
Ratio of net investment income to average net
assets 5.10% 4.53% 5.08% 5.45%
Net assets, end of period (in millions) $38 $44 $43 $39
<FN>
<F1>Operations commenced on July 6, 1996.
<F2>Total return for periods of less than one year are not annualized. Total
return is the percentage increase in value for a period, assuming initial
investment at the day before the start of the period and assuming all
dividends and distributions were reinvested and a redemption at the net
asset value on the last day of a period.
</TABLE>
46
<PAGE>
<PAGE>
INDEPENDENT AUDITORS' REPORT
Lindner Large-Cap Fund
Lindner Asset Allocation Fund
Lindner Utility Fund
Lindner Small-Cap Fund
Lindner Opportunities Fund
Lindner Market Neutral Fund, and
Lindner Government Money Market Fund
To the Trustees and Shareholders of Lindner Investments:
We have audited the accompanying statements of assets and
liabilities of the Lindner Large-Cap Fund, the Lindner Asset
Allocation Fund, the Lindner Utility Fund, the Lindner Small-Cap
Fund, the Lindner Opportunities Fund, the Lindner Market Neutral
Fund, and the Lindner Government Money Market Fund (the "Funds"),
including the schedules of investments, as of June 30, 2000, and the
related statements of operations for the periods then ended, the
statement of changes in net assets for the periods ended June 30,
2000 and 1999, and the financial highlights for each of the periods
in the five year period ended June 30, 2000. These financial
statements and financial highlights are the responsibility of the
Funds' management. Our responsibility is to express an opinion on
these financial statements and financial highlights based on our
audits.
We conducted our audits in accordance with auditing standards
generally accepted in the United States of America. Those standards
require that we plan and perform the audit to obtain reasonable
assurance about whether the financial statements and financial
highlights are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statements. Our procedures included
confirmation of securities owned as of June 30, 2000, by
corresponding with the Funds' custodians and brokers. An audit also
includes assessing the accounting principles used and significant
estimates made by management, as well as evaluating the overall
financial statement presentation. We believe that our audits provide
a reasonable basis for our opinion.
In our opinion, such financial statements and financial highlights
referred to above present fairly, in all material respects, the
financial positions of the Funds at June 30, 2000, and the results
of their operations for the period then ended, the changes in their
net assets for the periods ended June 30, 2000 and 1999, and the
financial highlights for each of the periods in the five year period
then ended in conformity with accounting principles generally
accepted in the United States of America.
DELOITTE & TOUCHE LLP
St. Louis, Missouri
August 4, 2000
47
<PAGE>
<PAGE>
------------------------------------
The views expressed in this
report and information about the
funds' portfolio holdings are
for the period covered by this
report, and are subject to
change thereafter. This report
must be preceded or accompanied
by a prospectus.
------------------------------------
