<PAGE>
LETTER FROM THE CHAIRMAN
- --------------------------------------------------------------------------------
Dear Shareholders:
First I want to thank each of you for your overwhelming support of the changes
we proposed for the Funds. You approved those changes at the March 21
shareholders meeting. The new name of the Trust "Financial Investors Trust" is
in place. The newly elected Board of Trustees has had its initial meeting and GE
Investment Management Incorporated is acting as investment adviser to the Funds.
Highlighted below are several features of the reconstituted Funds.
1. Most importantly these Funds stress safety - our first priority. As
you are aware, both Funds are AAA rated by both Fitch and Standard &
Poor's. As a consequence, the weighted average maturities are limited to 60
days. Many competitor funds, in a search for higher yields, include
commercial paper and certain forms of derivative securities among their
permissible investments. We have chosen not to permit these types of
investments. We only select direct U.S. Treasury, U.S. Government and
Agency securities, and repurchase agreements collateralized to 102% by
these obligations for our Funds.
Further, we believe that SEC oversight adds an additional layer of
risk management to the Funds. That layer does not exist with state and
local investment pools. The independent Trustees of the Funds, whose
primary responsibility is to protect the interests of shareholders, provide
a further layer of scrutiny.
2. GE Investments, one of the nation's largest and most highly respected
financial advisers, serves as investment adviser to both Funds. They manage
more than $60 billion in assets. Their experience, knowledge and reputation
are a comfort to us and I'm sure to you, the shareholders of Financial
Investors Trust.
3. We stress personalized service for each of our shareholders and strive
to accommodate each shareholder's unique needs. Our representatives are
available from 9:00 a.m. to 8:00 p.m. ET to help you with any questions you
may have about your accounts. In addition, we send a regularly scheduled
fax to all interested parties providing Fund information on yields and
maturities. If you would prefer to have personal access to your accounts,
we can accommodate you with our remote access software package that is easy
to use and allows you to perform inquiries and transaction processing right
at your desk. And, since we know that all cash management decisions are not
made by lunchtime, we have established late cutoff times for both purchases
(5:00 p.m. ET) and redemptions (1:00 p.m. ET).
Again, many thanks for your support. We always like to hear from you and will
always strive to be responsive and courteous to any requests or suggestions
which we receive from you.
Sincerely,
/s/ W. Robert Alexander
W. Robert Alexander
Chairman
- --------------------------------------------------------------------------------
1
<PAGE>
ADVISER FUND UPDATE
- --------------------------------------------------------------------------------
U.S. TREASURY MONEY MARKET FUND
The investment objective of the Fund is to provide investors with as high a
level of current income as is consistent with the preservation of capital and
liquidity by investing in U.S. Treasury bills, notes and other direct
obligations of the U.S. Treasury and repurchase agreements collateralized to
102% by these obligations. However, the government guarantee supporting the
Fund's investments applies only to the payment of principal and interest of the
Fund's underlying portfolio securities. It does not guarantee the credit of a
repurchase agreement counterparty, the value of the Fund's shares nor does it
guarantee against adverse price movements brought about by an increase in
prevailing rates of market interest. The Fund is required to maintain a
dollar-weighted average portfolio maturity of 90 days or less. However, the Fund
seeks a dollar-weighted average portfolio maturity of 60 days or less in order
to preserve its AAA rating. The Fund also seeks to maintain a stable net asset
value of $1.00 per share although there can be no assurance of this.
U.S. TREASURY MONEY MARKET FUND
SECTOR PROFILE
as of April 30, 1997
Repurchase Agreements 44%
U.S. Treasury Notes & Bills 56%
[CHART]
U.S. TREASURY MONEY MARKET FUND
7-Day SEC Yield: 5.17%
This yield is as of 4/30/97 and reflects reinvestment of all dividend
distributions, all fee waivers in effect and any expense reimbursements.
Without the fee waivers and expense reimbursements in effect, the yield would
have been lower. Fund inception date is 5/25/94.
COMPARISON OF CHANGE IN VALUE OF $100,000 INVESTMENT IN THE FINANCIAL INVESTORS
TRUST U.S. TREASURY MONEY MARKET FUND AND THE IBC/DONOGHUE TREASURY & REPURCHASE
AGREEMENT AVERAGE
[GRAPH]
- --------------------------------------------------------------------------------
2
<PAGE>
ADVISER FUND UPDATE
- --------------------------------------------------------------------------------
U.S. TREASURY MONEY MARKET FUND (CONTINUED)
As of April 30, 1997, the Fund had a 7-day effective yield of 5.31% and a
7-day SEC yield of 5.17%, compared with 5.15% and 5.03%, respectively, on
October 31, 1996. The average maturity of the Fund was 56 days. The 90 day
Treasury Bill yielded 5.30% for this period. The IBC/Donoghue Money Fund average
for U.S. Treasuries & Repurchase Agreements index yield was 4.73%. The portfolio
composition was 56% Treasury bills and notes and 44% repurchase agreements.
Economic data during the first quarter continued the familiar pattern of
stronger than expected growth with weaker than expected inflation. As rates
rose, we extended the average duration of the Fund to pick up yield while
maintaining liquidity. Market sentiment is biased towards a tightening of
monetary policy by the Federal Reserve. Our current strategy is to shorten
average maturity from 56 days to about the IBC's average of 44 days. We will
continue to maintain a balance between U.S. Treasury securities and repurchase
agreements. With the anticipation of higher interest rates on the horizon, we
will buy as the opportunity presents itself.
- --------------------------------------------------------------------------------
3
<PAGE>
THESE FUNDS ARE NEITHER INSURED NOR GUARANTEED BY THE U.S. GOVERNMENT, THE
FEDERAL RESERVE BOARD OR ANY OTHER GOVERNMENTAL AGENCY OR INSURER.
INVESTMENT ADVISER
GE Investment
Management Incorporated
3003 Summer Street
P.O. Box 7900
Stamford, Connecticut 06905
DISTRIBUTOR & ADMINISTRATOR
ALPS Mutual Funds Services, Inc.
370 Seventeenth Street
Suite 2700
Denver, Colorado 80202-5627
LEGAL COUNSEL
Baker & McKenzie
805 Third Avenue
New York, New York 10022
INDEPENDENT AUDITORS
Deloitte & Touche LLP
555 Seventeenth Street
Suite 3600
Denver, Colorado 80202
CUSTODIAN
State Street Bank and Trust
Company of Connecticut N.A.
750 Main Street
Suite 1114
Hartford, Connecticut 06103
SUB-CUSTODIAN &
TRANSFER AGENT
State Street Bank & Trust Company
P.O. Box 1978
Boston, Massachusetts 02105
FOR MORE INFORMATION, PLEASE CALL
1-800-298-3442
[LOGO]
[LOGO]
FINANCIAL
INVESTORS
TRUST
Annual Report
FOR THE PERIOD ENDED
APRIL 30, 1997
[LOGO]
<PAGE>
ADVISER FUND UPDATE
- --------------------------------------------------------------------------------
U.S. GOVERNMENT MONEY MARKET FUND
The Fund seeks to provide investors with as high a level of current income
as is consistent with the preservation of capital and liquidity by investing
exclusively in obligations issued or guaranteed as to principal or interest by
the U.S. Government or by any of its agencies or instrumentalities and
repurchase agreements collateralized to 102% by these obligations. However, the
government guarantee supports only the payment of principal and interest of the
Fund's underlying portfolio securities. It does not guarantee the value of the
Fund's shares nor does it guarantee against adverse price movements brought
about by an increase in prevailing rates of market interest. The Fund is
required to maintain a dollar-weighted average portfolio maturity
of 90 days or less. However, the Fund seeks a dollar-weighted average portfolio
maturity of 60 days or less in order to preserve its AAA rating. The Fund also
seeks to maintain a stable net asset value of $1.00 per share although there
can be no assurance of this.
U.S. GOVERNMENT MONEY MARKET FUND
SECTOR PROFILE
as of April 30, 1997
Repurchase Agreements 45%
U.S. Government Agencies 55%
[CHART]
U.S. GOVERNMENT MONEY MARKET FUND
7-Day SEC Yield: 5.29%
This yield is as of 4/30/97 and reflects reinvestment of all dividend
distributions, all fee waivers in effect and any expense reimbursements.
Without the fee waivers and expense reimbursements in effect, the yield would
have been lower. Fund inception date is 7/10/96.
COMPARISON OF CHANGE IN VALUE OF $2,000,000 INVESTMENT IN THE FINANCIAL
INVESTORS TRUST U.S. GOVERNMENT MONEY MARKET FUND AND THE IBC/DONOGHUE
GOVERNMENT ONLY-INSTITUTIONAL ONLY FUND AVERAGE.
[GRAPH]
- --------------------------------------------------------------------------------
4
<PAGE>
ADVISER FUND UPDATE
- --------------------------------------------------------------------------------
U.S. GOVERNMENT MONEY MARKET FUND (CONTINUED)
At April 30, 1997, the Fund had a 7-day effective yield of 5.44% and a
7-day SEC yield of 5.29%, compared with 5.28% and 5.14%, respectively, on
October 31, 1996. The average maturity of the Fund was 28 days. The 90 day
Treasury Bill yielded 5.30% for this period. The IBC/Donoghue Money Fund average
for Government Only-Institutional Only Funds yield was 4.67%. The Fund's
portfolio composition was 55% U.S. Agencies and 45% repurchase agreements.
The Federal Reserve tightened monetary policy during the first quarter of
1997, raising rates to 5.50% for overnight funds. The economic data released
during the first quarter indicated that higher interest rates are headed our
way. The yield curve seems to support this theory as 1 year rates rose by 37
basis points. Our strategy is to maintain the Fund's current maturity between 28
and 35 days, staying short of the IBC's average of 44 days. We will continue to
maintain a balance between U.S. Agency securities and repurchase agreements. As
buying opportunities arise, we will take advantage to raise yield and sustain
duration.
THIS REPORT, INCLUDING THE FINANCIAL STATEMENTS HEREIN, IS TRANSMITTED TO THE
SHAREHOLDERS OF THE FUNDS FOR THEIR INFORMATION. THIS IS NOT A PROSPECTUS,
CIRCULAR OR REPRESENTATION INTENDED FOR USE IN THE PURCHASE OF SHARES OF THE
FUNDS OR ANY SECURITIES MENTIONED IN THIS REPORT.
- --------------------------------------------------------------------------------
5
<PAGE>
INDEPENDENT AUDITORS' REPORT
TO THE BOARD OF TRUSTEES AND SHAREHOLDERS
FINANCIAL INVESTORS TRUST:
We have audited the accompanying statements of assets and liabilities,
including the statements of investments, of the U.S. Treasury Money Market Fund
and the U.S. Government Money Market Fund of the Financial Investors Trust as of
April 30, 1997, the related statements of operations for the year then ended and
the statements of changes in net assets and financial highlights for each of the
periods indicated. These financial statements and financial highlights are the
responsibility of the Trust's Management. Our responsibility is to express an
opinion on these financial statements and financial highlights based on our
audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements and financial
highlights are free of material misstatement. An audit also includes examining
on a test basis, evidence supporting the amounts and disclosures in the
financial statements. Our procedures included confirmation of securities owned
at April 30, 1997, by correspondence with the custodian. 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 present
fairly, in all material respects, the financial position of the U.S. Treasury
Money Market Fund and the U.S. Government Money Market Fund of the Financial
Investors Trust as of April 30, 1997, and the results of their operations, the
changes in their net assets and financial highlights for each of the periods
indicated in conformity with generally accepted accounting principles.
/s/ Deloitte & Touche LLP
DELOITTE & TOUCHE LLP
DENVER, COLORADO
MAY 22, 1997
- --------------------------------------------------------------------------------
6
<PAGE>
U.S. TREASURY MONEY MARKET FUND
- --------------------------------------------------------------------------------
STATEMENT OF ASSETS AND LIABILITIES
APRIL 30, 1997
ASSETS
Investments, at amortized cost (which approximates market value)
- see accompanying statement $166,889,578
Interest Receivable 1,372,815
Organizational costs, net of accumulated amortization 141,314
Receivable from administrator 21,752
Other 16,221
- --------------------------------------------------------------------------------
Total Assets 168,441,680
- --------------------------------------------------------------------------------
LIABILITIES
Dividends payable 722,195
Advisory fees payable 8,799
Accrued expenses 18,936
- --------------------------------------------------------------------------------
Total Liabilities 749,930
- --------------------------------------------------------------------------------
NET ASSETS $167,691,750
- --------------------------------------------------------------------------------
COMPOSITION OF NET ASSETS
Paid-in capital $167,725,567
Accumulated net realized loss (33,817)
- --------------------------------------------------------------------------------
NET ASSETS $167,691,750
- --------------------------------------------------------------------------------
Shares of beneficial interest outstanding 167,725,567
- --------------------------------------------------------------------------------
Net asset value and redemption value per share $1.00
- --------------------------------------------------------------------------------
See notes to financial statements.
- --------------------------------------------------------------------------------
7
<PAGE>
U.S. TREASURY MONEY MARKET FUND
- --------------------------------------------------------------------------------
STATEMENT OF INVESTMENTS
APRIL 30, 1997
Face Value Market Value*
- ---------- -------------
U.S. TREASURY OBLIGATIONS 55.50%
- --------------------------------------------------------------------------------
U.S. Treasury Notes:
$20,000,000 6.50%, 5/15/97 $20,008,888
10,000,000 6.75%, 5/31/97 10,009,185
10,000,000 5.88%, 7/31/97 10,009,710
15,000,000 6.50%, 8/15/97 15,041,696
10,000,000 6.00%, 8/31/97 10,005,663
8,000,000 5.75%, 9/30/97 8,000,613
5,000,000 5.63%, 10/31/97 4,995,205
15,000,000 5.75%, 10/31/97 14,998,650
------------
TOTAL U.S. TREASURY OBLIGATIONS
(Cost $93,069,610) 93,069,610
------------
<TABLE>
<CAPTION>
REPURCHASE AGREEMENTS
COLLATERALIZED BY U.S. GOVERNMENT
OBLIGATIONS 44.02% Collateral Value
- --------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
8,000,000 Repurchase agreement with Chase Securities Inc.,
5.35%, dated 4/30/97 and maturing 5/1/97,
collateralized by U.S. Treasury Note, 7.875% due
11/15/99 8,001,189 $8,163,663
8,000,000 Repurchase agreement with Deutsche Bank Corp.,
5.34%, dated 4/30/97 and maturing 5/1/97,
collateralized by U.S. Treasury Note, 6.50% due
10/15/06 8,001,186 8,160,724
8,000,000 Repurchase agreement with Harris Nesbitt,
5.43%, dated 4/30/97 and maturing 5/1/97,
collateralized by U.S. Treasury Bills, due
7/3/97 and 9/18/97 and U.S Treasury Bond,
7.625% due 11/15/22 8,001,207 8,160,423
8,000,000 Repurchase agreement with J.P. Morgan,
5.42%, dated 4/30/97 and maturing 5/1/97,
collateralized by U.S. Treasury Note, 6.375%
due 5/15/99 8,001,204 8,160,954
</TABLE>
- --------------------------------------------------------------------------------
8
<PAGE>
U.S. TREASURY MONEY MARKET FUND
- --------------------------------------------------------------------------------
STATEMENT OF INVESTMENTS
APRIL 30, 1997 (CONTINUED)
<TABLE>
<CAPTION>
Face Value Market Value* Collateral Value
- ---------- ----------------------------------
REPURCHASE AGREEMENTS
COLLATERALIZED BY U.S. GOVERNMENT
OBLIGATIONS (continued)
- -------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
$8,000,000 Repurchase agreement with Merrill Lynch Inc.,
5.30%, dated 4/30/97 and maturing 5/1/97,
collateralized by U.S. Treasury Bill, due
10/16/97 $8,001,178 $8,162,610
8,000,000 Repurchase agreement with Morgan Stanley Inc.,
5.30%, dated 4/30/97 and maturing 5/1/97,
collateralized by U.S. Treasury Note, 6.375% due
6/30/97 8,001,178 8,162,978
17,809,000 Repurchase agreement with State Street Bank
Corp.,5.32%, dated 4/30/97 and maturing
5/1/97, collateralized by U.S. Treasury Bond,
7.25% due 5/15/16 17,811,632 18,743,802
8,000,000 Repurchase agreement with UBS Securities Inc.,
5.38%, dated 4/30/97 and maturing 5/1/97,
collateralized by U.S. Treasury Bond, 7.875%
due 2/15/21 8,001,194 8,162,038
----------------------------------
TOTAL REPURCHASE AGREEMENTS
(Cost $73,819,968) 73,819,968 75,877,192
----------------------------------
TOTAL INVESTMENTS
(Cost $166,889,578) 99.52% 166,889,578
Other Assets in Excess of Liabilities 0.48% 802,172
-------------------------------
NET ASSETS 100.00% $167,691,750
-------------------------------
-------------------------------
</TABLE>
*See note 1 to financial statements.
- --------------------------------------------------------------------------------
9
<PAGE>
U.S. TREASURY MONEY MARKET FUND
- --------------------------------------------------------------------------------
STATEMENT OF OPERATIONS
FOR THE YEAR ENDED APRIL 30, 1997
INVESTMENT INCOME $14,068,420
- --------------------------------------------------------------------------------
EXPENSES
Investment advisory fee (Note 3) 748,787
Administration Services * (Note 3) 750,000
Legal 101,407
Amortization of organization costs 67,915
Insurance 27,287
Registration 77,712
Other 5,807
- --------------------------------------------------------------------------------
Total Expenses 1,778,915
- --------------------------------------------------------------------------------
Expenses waived by investment advisor (739,988)
Expenses reimbursed by investment advisor (170,142)
Expenses waived by administrator (75,890)
- --------------------------------------------------------------------------------
Net Expenses 792,895
- --------------------------------------------------------------------------------
NET INVESTMENT INCOME $13,275,525
- --------------------------------------------------------------------------------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $13,275,525
- --------------------------------------------------------------------------------
*Administration services include: fund accounting, daily pricing, licensing and
registration, shareholder services, transfer agency, fund ratings, audit,
training and printing.
See notes to financial statements.
- --------------------------------------------------------------------------------
10
<PAGE>
U.S. TREASURY MONEY MARKET FUND
- --------------------------------------------------------------------------------
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
For the For the
Year Ended Year Ended
April 30, 1997 April 30, 1996
-----------------------------------
<S> <C> <C>
OPERATIONS
Net investment income $13,275,525 $13,297,094
Net realized gain on investments 0 8,676
- -------------------------------------------------------------------------------------------------
Net increase in net assets resulting from operations 13,275,525 13,305,770
Dividends to shareholders from net investment income (13,275,525) (13,297,094)
- -------------------------------------------------------------------------------------------------
Change in net assets from operations 0 8,676
- -------------------------------------------------------------------------------------------------
BENEFICIAL INTEREST TRANSACTIONS
Shares sold 762,297,270 1,141,004,290
Dividends reinvested 12,941,419 9,807,519
- -------------------------------------------------------------------------------------------------
775,238,689 1,150,811,809
Shares redeemed (923,910,706) (943,512,019)
- -------------------------------------------------------------------------------------------------
Change in net assets derived from beneficial interest
transactions (148,672,017) 207,299,790
- -------------------------------------------------------------------------------------------------
NET INCREASE (DECREASE) IN NET ASSETS (148,672,017) 207,308,466
NET ASSETS:
Beginning of period 316,363,767 109,055,301
- -------------------------------------------------------------------------------------------------
End of period $167,691,750 $316,363,767
- -------------------------------------------------------------------------------------------------
</TABLE>
See notes to financial statements.
- --------------------------------------------------------------------------------
11
<PAGE>
U.S. TREASURY MONEY MARKET FUND
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
Selected data for a share of beneficial
interest outstanding throughout the period indicated(1):
<TABLE>
<CAPTION>
For the For the For the
Year Ended Year Ended Period Ended
April 30, 1997 April 30, 1996 April 30, 1995 (2)
-----------------------------------------------------------
<S> <C> <C> <C>
Net asset value - beginning of period $1.00 $1.00 $1.00
- ----------------------------------------------------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS
Net investment income 0.05 0.05 0.04
- ----------------------------------------------------------------------------------------------------------------------------
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS
Dividends from net investment income (0.05) (0.05) (0.04)
- ----------------------------------------------------------------------------------------------------------------------------
Net asset value - end of period $1.00 $1.00 $1.00
- ----------------------------------------------------------------------------------------------------------------------------
Total return 5.15% 5.44% 4.71%(3)
- ----------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000) $167,692 $316,364 $109,055
- ----------------------------------------------------------------------------------------------------------------------------
Ratio of expenses to average net assets 0.30% 0.30% 0.50%(3)
- ----------------------------------------------------------------------------------------------------------------------------
Ratio of net investment income to
average net assets 5.02% 5.36% 4.87%(3)
- ----------------------------------------------------------------------------------------------------------------------------
Ratio of expenses to average net assets
without fee waivers 0.67% 0.71% 1.32%(3)
- ----------------------------------------------------------------------------------------------------------------------------
Ratio of net investment income to
average net assets without fee waivers 4.65% 4.95% 4.05%(3)
- ----------------------------------------------------------------------------------------------------------------------------
</TABLE>
(1) The financial highlights prior to March 24, 1997 reflect the operations of
the Fund while the Fund's investment adviser was FGIC Advisors, Inc. GEIM
was approved as the Fund's investment adviser at a special meeting of the
shareholders of the Fund on March 21, 1997.
(2) Operations commenced on May 25, 1994.
(3) Annualized
See notes to financial statements.
- --------------------------------------------------------------------------------
12
<PAGE>
U.S. GOVERNMENT MONEY MARKET FUND
- --------------------------------------------------------------------------------
STATEMENT OF ASSETS AND LIABILITIES
APRIL 30, 1997
ASSETS
Investments, at amortized cost (which approximates market value)
- see accompanying statement $87,805,409
Organizational costs, net of accumulated amortization 7,094
Other 16,354
- --------------------------------------------------------------------------------
Total Assets 87,828,857
- --------------------------------------------------------------------------------
LIABILITIES
Dividends payable 373,259
Advisory fees payable 9,029
Accrued expenses 30,917
- --------------------------------------------------------------------------------
Total Liabilities 413,205
- --------------------------------------------------------------------------------
NET ASSETS $87,415,652
- --------------------------------------------------------------------------------
COMPOSITION OF NET ASSETS
Paid-in capital $87,580,070
Accumulated net realized loss (164,418)
- --------------------------------------------------------------------------------
NET ASSETS $87,415,652
- --------------------------------------------------------------------------------
Shares of beneficial interest outstanding 87,428,781
- --------------------------------------------------------------------------------
Net asset value and redemption value per share $1.00
- --------------------------------------------------------------------------------
See notes to financial statements.
- --------------------------------------------------------------------------------
13
<PAGE>
U.S. GOVERNMENT MONEY MARKET FUND
- --------------------------------------------------------------------------------
STATEMENT OF INVESTMENTS
APRIL 30, 1997
Face Value Market Value*
- ---------- -------------
U.S. GOVERNMENT AGENCY
OBLIGATIONS 54.95%
- --------------------------------------------------------------------------------
Federal Home Loan Bank
$1,400,000 5.35%, 5/1/97 $1,400,000
Federal Home Loan Mortgage Corp.
5,000,000 5.50%, 6/13/97 4,966,971
8,000,000 5.41%, 6/30/97 7,927,769
5,000,000 5.52%, 7/3/97 4,951,528
Federal National Mortgage Association
6,000,000 5.35%, 5/19/97 5,983,936
5,000,000 5.46%, 6/9/97 4,970,321
10,000,000 5.45%, 6/24/97 9,918,164
8,000,000 5.53%, 7/9/97 7,914,813
-------------
TOTAL U.S. GOVERNMENT AGENCY OBLIGATIONS
(Cost $48,033,502) 48,033,502
-------------
<TABLE>
<CAPTION>
REPURCHASE AGREEMENTS
COLLATERALIZED BY U.S.
GOVERNMENT OBLIGATIONS 45.50% Collateral Value
- --------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
4,000,000 Repurchase agreement with Chase Securities
Inc., 5.35%, dated 4/30/97 and maturing
5/1/97, collateralized by U.S. Treasury Note,
7.875% due 11/15/99 4,000,595 $4,084,504
4,000,000 Repurchase agreement with Deutsche Bank Corp.,
5.34%, dated 4/30/97 and maturing 5/1/97,
collateralized by U.S. Treasury Note, 8.875%
due 11/15/98 and U.S. Treasury Bond, 9.25%
due 2/15/16 4,000,593 4,081,031
4,000,000 Repurchase agreement with Harris Nesbitt,
5.43%, dated 4/30/97 and maturing 5/1/97,
collateralized by U.S. Treasury Bill, due 7/3/97
and U.S. Treasury Bonds, 10.75% due 2/15/03,
and 6.75% due 8/15/26 $4,000,603 $4,080,856
- --------------------------------------------------------------------------------
14
<PAGE>
U.S. GOVERNMENT MONEY MARKET FUND
- --------------------------------------------------------------------------------
STATEMENT OF INVESTMENTS
APRIL 30, 1997 (CONTINUED)
<CAPTION>
Face Value Market Value* Collateral Value
- ---------- ----------------------------------
<S> <C> <C> <C>
REPURCHASE AGREEMENTS
COLLATERALIZED BY U.S.
GOVERNMENT OBLIGATIONS (CONTINUED)
- --------------------------------------------------------------------------------------------------
$4,000,000 Repurchase agreement with J.P. Morgan,
5.42%, dated 4/30/97 and maturing 5/1/97,
collateralized by U.S. Treasury Bill, due
5/8/97 and U.S. Treasury Note, 5.75% due
10/31/00 4,000,602 4,080,381
4,000,000 Repurchase agreement with Merrill Lynch Inc.,
5.30%, dated 4/30/97 and maturing 5/1/97,
collateralized by U.S. Treasury Bill, due
10/16/97 4,000,589 4,083,741
4,000,000 Repurchase agreement with Morgan Stanley Inc.,
5.30%, dated 4/30/97 and maturing 5/1/97,
collateralized by U.S. Treasury Bond, 8.875%
due 8/15/17 4,000,589 4,093,996
11,766,000 Repurchase agreement with State Street Bank
Corp., 5.32%, dated 4/30/97 and maturing
5/1/97, collateralized by U.S. Treasury Bond,
7.25% due 5/15/16 11,767,739 12,384,202
4,000,000 Repurchase agreement with UBS Securities Inc.,
5.38%, dated 4/30/97 and maturing 05/1/97,
collateralized by FNMA, 4.875%, due 10/15/98
FHLB, 6.25% due 1/22/99 and FHLB, 5.51%
due 9/24/97 4,000,597 4,084,929
----------------------------------
TOTAL REPURCHASE AGREEMENTS
(Cost $39,771,907) 39,771,907 40,973,640
----------------------------------
- --------------------------------------------------------------------------------
15
<PAGE>
U.S. GOVERNMENT MONEY MARKET FUND
- --------------------------------------------------------------------------------
STATEMENT OF INVESTMENTS
APRIL 30, 1997 (CONTINUED)
<CAPTION>
TOTAL INVESTMENTS
(Cost $87,805,409) 100.45% 87,805,409
----------------------------------
Liabilities in Excess of Other Assets (0.45%) (389,757)
----------------------------------
NET ASSETS 100.00% $87,415,652
----------------------------------
----------------------------------
</TABLE>
*See note 1 to financial statements.
- --------------------------------------------------------------------------------
16
<PAGE>
U.S. GOVERNMENT MONEY MARKET FUND
- --------------------------------------------------------------------------------
STATEMENT OF OPERATIONS
FOR THE YEAR ENDED APRIL 30, 1997
INVESTMENT INCOME $3,879,243
- --------------------------------------------------------------------------------
EXPENSES
Investment advisory fee (Note 3) 113,608
Administration services * (Note 3) 92,781
Legal 46,430
Amortization of organization costs 3,574
Insurance 2,059
Registration 23,282
Miscellaneous 2,293
- --------------------------------------------------------------------------------
Total Expenses 284,027
- --------------------------------------------------------------------------------
Expenses waived by investment advisor (110,066)
Expenses reimbursed by investment advisor (1,594)
Expenses waived by administrator (3,949)
- --------------------------------------------------------------------------------
NET EXPENSES 168,418
- --------------------------------------------------------------------------------
NET INVESTMENT INCOME 3,710,825
- --------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS
Net realized gain from investment transactions 22,252
- --------------------------------------------------------------------------------
Unrealized appreciation on investments:
Beginning of period 40,458
End of period 0
- --------------------------------------------------------------------------------
Net change in unrealized appreciation (40,458)
- --------------------------------------------------------------------------------
NET REALIZED AND UNREALIZED LOSS ON INVESTMENTS (18,206)
- --------------------------------------------------------------------------------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $3,692,619
- --------------------------------------------------------------------------------
* Administration services include: fund accounting, daily pricing, custody,
licensing and registration, shareholder servicing, transfer agency, fund
ratings, audit, training and printing.
See notes to financial statements.
- --------------------------------------------------------------------------------
17
<PAGE>
U.S. GOVERNMENT MONEY MARKET FUND
- --------------------------------------------------------------------------------
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
For the For the
Year Ended Year Ended
April 30, 1997 April 30, 1996
-----------------------------------
<S> <C> <C>
OPERATIONS
Net investment income $3,710,825 $1,828,452
Net realized gain on investments 22,252 2,142
Net change in unrealized appreciation/depreciation (40,458) 4,513
- --------------------------------------------------------------------------------------------------
Net increase in net assets resulting from operations 3,692,619 1,835,107
Dividends to shareholders from net investment income (3,710,825) (1,828,452)
- --------------------------------------------------------------------------------------------------
Change in net assets from operations (18,206) 6,655
- --------------------------------------------------------------------------------------------------
BENEFICIAL INTEREST TRANSACTIONS
Shares sold 211,760,515 23,564,658
Dividends reinvested 2,781,667 1,457,918
- --------------------------------------------------------------------------------------------------
214,542,182 25,022,576
Shares redeemed (158,190,472) (35,840,169)
- --------------------------------------------------------------------------------------------------
Change in net assets derived from beneficial interest
transactions 56,351,710 (10,817,593)
- --------------------------------------------------------------------------------------------------
NET INCREASE (DECREASE) IN NET ASSETS 56,333,504 (10,810,938)
NET ASSETS:
Beginning of year 31,082,148 41,893,086
- --------------------------------------------------------------------------------------------------
End of year $87,415,652 $31,082,148
- --------------------------------------------------------------------------------------------------
See notes to financial statements.
- --------------------------------------------------------------------------------------------------
18
<PAGE>
U.S. GOVERNMENT MONEY MARKET FUND
- --------------------------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
Selected data for a share of beneficial interest
outstanding throughout the period indicated(1): For the For the For the
Year Ended Year Ended Period Ended
April 30, 1997 April 30, 1996 April 30, 1995 (2)
--------------------------------------------------------
<S> <C> <C> <C>
Net asset value - beginning of period $9.97 $9.97 $10.00
- -----------------------------------------------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS
Net investment income 0.14 0.55 0.44
Net realized and unrealized gain (loss)
on investments 0.00 0.00 (0.03)
- -----------------------------------------------------------------------------------------------------------------------
Total income from investment operations (0.14) 0.55 0.41
- -----------------------------------------------------------------------------------------------------------------------
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS
Dividends from net investment income (0.14) (0.55) (0.44)
Stock Split (Note 4) (8.97) 0.00 0.00
- -----------------------------------------------------------------------------------------------------------------------
Total dividends and distributions to shareholders (9.11) (0.55) (0.44)
- -----------------------------------------------------------------------------------------------------------------------
Net asset value - end of period $1.00 $9.97 $9.97
- -----------------------------------------------------------------------------------------------------------------------
Total return 5.23% 5.65% 4.73%(4)
- -----------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000) $87,416 $31,082 $41,893
- -----------------------------------------------------------------------------------------------------------------------
Ratio of expenses to average net assets 0.23% 0.60% 0.45%(4)
- -----------------------------------------------------------------------------------------------------------------------
Ratio of net investment income to
average net assets 5.13% 5.38% 5.23%(4)
- -----------------------------------------------------------------------------------------------------------------------
Ratio of expenses to average net assets
without fee waivers 0.39% 0.85% 0.65%(4)
- -----------------------------------------------------------------------------------------------------------------------
Ratio of net investment income to average
net assets without fee waivers 4.97% 5.12% 5.03%(4)
- -----------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate n/a(3) 0.00% 827.35%(4)
- -----------------------------------------------------------------------------------------------------------------------
</TABLE>
(1) The financial highlights prior to July 10, 1996 reflect the operations of
the Fund as the Short-Term U.S. Government Income Fund when it was not a
money market fund and had different investment policies and expenses, and a
fluctuating net asset value not maintained at $1.00 per share. The Fund
changed to a money market fund on July 10, 1996 following a Special Meeting
of the Fund's shareholders on June 27, 1996. The financial highlights also
reflect the operations of the Fund while the Fund's investment adviser was
FGIC Advisors, Inc. GEIM was approved as the Fund's investment adviser at
a Special Meeting of the shareholders of the Fund on March 21, 1997.
(2) Operations commenced on June 7, 1994.
(3) A portfolio turnover rate is calculated for non-money market funds and is
therefore no longer applicable for the U.S. Government Money Market Fund
(see Note 4).
(4) Annualized.
See notes to financial statements.
- --------------------------------------------------------------------------------
19
<PAGE>
NOTES TO FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
1. SIGNIFICANT ACCOUNTING POLICIES
Financial Investors Trust, formerly FGIC Public Trust, (the "Trust") is
registered under the Investment Company Act of 1940, as amended, as an
open-end management investment company. The U.S. Treasury Money Market Fund
and the U.S. Government Money Market Fund (formerly the Short-Term U.S.
Government Income Fund) (the "Funds"), are represented by separate classes of
shares of beneficial interest of the Trust, which is organized as a Delaware
business trust.
The following is a summary of significant accounting policies
consistently followed by the Funds in the preparation of their financial
statements. The policies are in conformity with generally accepted
accounting principles.
INVESTMENT VALUATION: The U.S. Treasury Money Market Fund and the U.S.
Government Money Market Fund value their securities on the basis of amortized
cost which approximates market value. Prior to July 10, 1996 (see Note 4),
the U.S. Government Money Market Fund (then the Short-term U.S. Government
Income Fund) valued its securities, other than short-term securities, at
market value as determined by the last sales price of the day. Short-term
securities were valued at amortized cost which approximates market value.
REPURCHASE AGREEMENTS: The Funds' custodian takes possession of the
collateral pledged for investments in repurchase agreements. The underlying
collateral is valued daily on a mark-to-market basis to ensure that value,
including accrued interest, is at least 102% of the repurchase price. In the
event of default on the obligation to repurchase, the Funds have the right to
liquidate the collateral and apply the proceeds in satisfaction of the
obligation. Under certain circumstances, in the event of default by or
bankruptcy of the other party to the agreement, realization and/or retention
of the collateral may be subject to legal proceedings.
FEDERAL INCOME TAXES: It is the Funds' policy to continue to comply
with provisions of the Internal Revenue Code applicable to regulated
investment companies and to distribute all of its taxable income to
shareholders. Therefore, no Federal Income Tax provisions are required.
ORGANIZATION COSTS: The Funds have deferred certain organization costs.
Such costs are being amortized over a 60 month period from the commencement
of operations. In the event that all, or part of the initial investment in
shares of the Funds are withdrawn during the amortization period, the
redemption proceeds will be reduced by the proportionate amount of the
unamortized organization costs represented by the ratio that the number of
shares redeemed bears to the number of initial shares outstanding at the time
of each redemption.
OTHER: Investment transactions are accounted for on the date the
investments are purchased or sold (trade date). Dividends from net
investment income are declared daily and paid monthly. Distributions of
accumulated net realized gains, if any, are declared at least once a year.
Realized gains and losses from investment transactions are reported on an
identified cost basis which is the same basis the Funds use for Federal
Income Tax Purposes.
- --------------------------------------------------------------------------------
20
<PAGE>
NOTES TO FINANCIAL STATEMENTS CONTINUED)
- --------------------------------------------------------------------------------
1. SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
The preparation of financial statements in conformity with generally accepted
accounting principles requires management to make 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 and
the reported amounts of revenues and expenses during the reporting period.
Actual results could differ from these estimates.
2. SHARES OF BENEFICIAL INTEREST
On April 30, 1997, there was an unlimited number of no par value shares
of beneficial interest authorized. Transactions in shares of beneficial
interest were as follows:
<TABLE>
<CAPTION>
----------------------------------------------------------------------------------------------
U.S. Treasury Money Market Fund U.S. Government Money Market Fund
----------------------------------------------------------------------------------------------
For the Year Ended For the Year Ended For the Year Ended For the Period Ended
April 30, 1997 April 30, 1996 April 30, 1997 April 30, 1996
- ---------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Shares Sold 762,297,270 1,141,004,290 209,836,616 2,361,064
- ---------------------------------------------------------------------------------------------------------------------------------
Shares Reinvested 12,941,419 9,807,519 2,517,778 146,094
- ---------------------------------------------------------------------------------------------------------------------------------
Stock Split (Note 4) - - 27,832,061 -
- ---------------------------------------------------------------------------------------------------------------------------------
Total 775,238,689 1,150,811,809 240,186,455 2,507,158
- ---------------------------------------------------------------------------------------------------------------------------------
Shares Redeemed 923,910,706 943,512,019 155,874,732 3,591,204
- ---------------------------------------------------------------------------------------------------------------------------------
Net Increase
(Decrease) (148,672,017) 207,299,790 84,311,723 (1,084,046)
- ---------------------------------------------------------------------------------------------------------------------------------
</TABLE>
3. INVESTMENT ADVISORY FEES, ADMINISTRATION FEES AND OTHER RELATED PARTY
TRANSACTIONS
Since its inception, the Trust had entered into Investment Advisory
Agreements with FGIC Advisors, Inc. ("FGIC"). Pursuant to these advisory
agreements with the Trust, FGIC was entitled to an advisory fee, computed
daily and payable monthly, in the amount of .35 percent and .45 percent of
the average net assets of the U.S. Treasury Money Market Fund and the U.S.
Government Money Market Fund, respectively. At a meeting held on January 20,
1997, the Trustees of the Trust approved new Investment Advisory Agreements
with GE Investment Management, Incorporated ("GEIM"). The new Investment
Advisory Agreements were submitted to shareholders for their consideration
pursuant to a Proxy Statement dated March 3, 1997 and subsequently approved
by a majority of the shareholders at a Special Meeting held on March 21,
1997. Pursuant to these new advisory agreements, GEIM, effective March 24,
1997, replaced FGIC as the Adviser to each Fund, and is entitled to an
advisory fee, computed daily and payable monthly, based on the following fee
schedule:
- --------------------------------------------------------------------------------
21
<PAGE>
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
- --------------------------------------------------------------------------------
3. INVESTMENT ADVISORY FEES, ADMINISTRATION FEES AND OTHER RELATED PARTY
TRANSACTIONS (continued)
U.S. Treasury U.S. Government
Average Net Assets Money Market Fund Money Market Fund
------------------ ----------------- -----------------
First $500 million 0.05% 0.04%
Next $500 million 0.075% 0.06%
Next $500 million 0.10% 0.08%
In excess of $1.5 billion 0.15% 0.08%
For the period ended March 23, 1997, FGIC waived its entire advisory fee and
voluntarily assumed certain expenses of each Fund.
ALPS Mutual Funds Services, Inc. ("ALPS") serves as the Fund's
administrator. ALPS is entitled to receive a fee from each Fund for its
administrative services, computed daily and payable monthly, at the annual
rate of .18 percent of average daily net assets up to $500 million, .15
percent on the next $500 million and .12 percent on assets in excess of $1
billion, subject to a minimum monthly fee of $62,500 for the U.S. Treasury
Money Market Fund and $7,500 for the U.S. Government Money Market Fund. In
addition, for the year ended April 30, 1997, ALPS waived a portion of its
administration fee for each Fund.
Six shareholders of the U.S. Treasury Money Market Fund owned 10.1
percent, 7.5 percent, 6.3 percent, 6.2 percent, 5.4 percent and 5.2 percent
of that Fund's outstanding shares at April 30, 1997. Three shareholders of
the U.S. Government Money Market Fund owned 33.0 percent, 28.3 percent and
8.2 percent of that Fund's outstanding shares at April 30, 1997.
4. FUNDAMENTAL CHANGES
At a Special Meeting of the U.S. Government Money Market Fund (the
"Fund") (formerly the Short-Term U.S. Government Income Fund) held on June
27, 1996, shareholders of the Fund approved an amendment to a fundamental
investment restriction of the Fund to allow for the purchase of United States
Government agency and instrumentality obligations as well as repurchase
agreements collateralized to 102% by direct obligations of United States
Government agencies and instrumentalities. The shareholders also approved
that the Fund change from a non-money market fund to a money market fund and
that the Fund change its name to the U.S. Government Money Market Fund to
reflect these changes. After the close of business on July 9, 1996, the
changes approved by the shareholders of the Fund were implemented. As a money
market fund, the Fund seeks to maintain a net asset value of $1.00 for
purposes of purchases and redemptions. In order to bring the net asset value
of the Fund to $1.00, the Fund executed a stock split of 9.97 to 1 after the
close of business on July 9, 1996.
- --------------------------------------------------------------------------------
22
<PAGE>
Intentionally
Left Blank
- --------------------------------------------------------------------------------
23
