As filed with the Securities and Exchange Commission on September 5, 2003
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number 811-7932
Lindner Investments
(Exact name of registrant as specified in charter)
520 Lake Cook Road, Suite 381, Deerfield, IL 60015
(Address of principal executive offices) (Zip code)
Robert L. Miller
520 Lake Cook Road, Suite 381, Deerfield, IL 60015
(Name and address of agent for service)
1-800-995-7777
Registrant's telephone number, including area code
Date of fiscal year end: 06/30/2003
----------
Date of reporting period: 06/30/2003
----------
Item 1. Report to Stockholders.
ANNUAL REPORT 2003
[LOGO]
Lindner Funds
Advised by Lindner Asset Management, Inc.
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.
Contents
MARKET OVERVIEW................................................................2
LINDNER LARGE-CAP GROWTH FUND
Letter from the Fund Managers................................................. 3
Schedule of Investments....................................................... 5
LINDNER GROWTH AND INCOME FUND
Letter from the Fund Managers................................................. 6
Schedule of Investments....................................................... 8
LINDNER COMMUNICATIONS FUND
Letter from the Fund Manager..................................................10
Schedule of Investments.......................................................12
LINDNER SMALL-CAP GROWTH FUND
Letter from the Fund Managers.................................................13
Schedule of Investments.......................................................15
LINDNER MARKET NEUTRAL FUND
Letter from the Fund Managers.................................................17
Schedule of Investments.......................................................19
LINDNER GOVERNMENT MONEY MARKET FUND
Letter from the Fund Manager..................................................22
Schedule of Investments.......................................................23
Statements of Assets and Liabilities..........................................24
Statements of Operations......................................................25
Statements of Changes in Net Assets...........................................26
Notes to Financial Statements.................................................28
Financial Highlights..........................................................34
Independent Auditors Report...................................................40
Market Overview
August 2003
LINDNER FISCAL YEAR END
Dear Shareholder:
You will notice a significant difference in the most recent letters to Lindner
Fund shareholders. In the past, as you will recall, our portfolio managers often
provided their outlook for the economy and the markets. However, due to revised
and more conservative Securities and Exchange Commission requirements with
respect to Fund Financial Reports (under the Sarbanes-Oxley Act of 2002),
forward-looking information and/or opinions, including general projections of
economic outlook, will no longer be presented as a part of the portfolio
managers' letters. We believe that this report to our shareholders is within the
spirit and the rule of these new guidelines.
This year began and ended very differently. At the beginning of the fiscal year,
the equities markets were still absorbing an unusually large dose of bad news,
including further revelations of corporate accounting indiscretions and
geopolitical tension prompted by North Korean nuclear saber-rattling and the
pending invasion of Iraq. Although these issues have not disappeared, investors
were heartened by what appeared to be a quick U.S. victory in Iraq, aggressive
monetary and fiscal policies to boost the economy and avoid deflation, and
improving corporate earnings. As the equity markets enjoyed a substantial
resurgence in the first half of 2003, investors in investment grade fixed income
instruments found it increasingly difficult to obtain attractive yields.
We continue to give great care in both the selection and evaluation of the
Lindner Funds' Sub-Advisers. It is instructive to note that Lindner Asset
Management does not select the Lindner Funds' portfolio management teams based
upon their economic and market predictions. To as great an extent as possible,
our goal is to judge investment managers based on information that is verifiable
in the present. Consequently, we place considerable emphasis on evidence of
professional stability, a clear investment strategy, and a proven investment
process that is implemented in a disciplined and consistent manner. This cannot
guarantee that a manager will outperform. As advisor, however, we prefer to
entrust our shareholders' money to investment organizations that fulfill these
and other key criteria.
How the markets will fare in the months and years ahead is not predictable. What
we can say with certainty, based upon historical experience, is that investors
who properly diversify their portfolio among a number of mutual funds may have
an opportunity to reduce their total portfolio risk. The Lindner family of funds
has been constructed to help our shareholders potentially achieve meaningful
diversification across six well-defined funds with different risk and return
characteristics. This may be an opportune time for you to review whether your
mix of mutual funds is consistent with your long-term financial goals and risk
tolerance.
We appreciate that you have elected to invest with the Lindner Funds, and we
look forward to working on your behalf in the future.
/s/ Doug T. Valassis /s/ Albert A. Pisterzi
Doug T. Valassis Albert A. Pisterzi
Chairman & Chief Executive Officer Chief Operating Officer
Lindner Asset Management, Inc. Lindner Asset Management, Inc.
The above outlook and those that follow reflect the opinions of the Chairman,
Chief Operating Officer and portfolio managers of Lindner Funds as of June 30,
2003. They are subject to change and any forecast made cannot be guaranteed.
References to specific securities or sectors should not be considered
recommendations to buy or sell any securities. Please refer to the Annual Report
for percentages of holdings, performance information and additional disclosures.
Mutual Fund investing involves risk. Principal loss is possible.
For use only when accompanied or preceded by a prospectus. Quasar Distributors,
LLC, Distributor. 8/2003.
Performance Summary
With an objective of long-term capital appreciation, Lindner Large-Cap Growth
Fund for the first half of calendar 2003 returned 9.73% verssus the 13.09%
return of its benchmark, the Russell 1000 Growth Index. For the fiscal year
ending June 30, 2003, the Fund returned -3.32% compared to the benchmark's
return of 2.94%.
During the past 12 months, the markets had to contend with significant
geopolitical and economic concerns, including the Iraqi war, growing North
Korean belligerence, and the risk of a worldwide recession. In the U.S., a
marginal increase in capital spending was insufficient to compensate for a
slowdown in consumer spending, which was mainly responsible for the relentless
bear market culminating in the March-April 2003 stock market lows. Disappointing
absolute returns in the latter half of 2002 also prompted investors to abandon
growth stocks and search for new opportunities in the value sector. However,
this turned out to be a short-lived phenomenon, as better returns in the first
half of calendar 2003 prompted a quick and significant shift in market
sentiment, and investors slowly started to migrate back to growth.
In the first half of calendar 2003, a considerably underweighted position in
technology stocks (15% to 17% of the total portfolio versus 25% in its
benchmark) limited the Fund's ability to effectively participate in the tech
rebound. At the same time, we maintained a significantly overweighted position
in energy stocks, as we expected increasing worldwide demand for both natural
gas and crude oil to lead to supply shrinkage and eventually drive energy prices
higher. Although our forecast for crude oil and natural gas prices was accurate,
exploration/production and oil service companies did not benefit from a
commensurate increase in their level of activity nor participate in the market's
price/earnings ratio expansion in the first half of calendar 2003. Consequently,
these stocks underperformed.
Consumer staples is another sector in which the fund maintained a significantly
underweighted position. This strategy adversely affected the portfolio's
performance, especially in the third quarter of calendar 2002, when consumer
staples staged a temporary rebound (continued on next page)
Lindner Large-Cap Growth Fund
PERFORMANCE GRAPH
Comparison of change in value of $10,000 invested in the Russell 1000 Growth
Index and the Lindner Large-Cap Growth Fund from June 30, 1993 to June 30, 2003.
[LINE CHART]
Lindner Large Cap Russell 1000
Growth Fund Growth Index
6/30/93 10,000 10,000
6/30/94 10,483 9,970
6/30/95 12,045 13,009
6/30/96 14,689 16,627
6/30/97 16,525 21,837
6/30/98 16,576 28,692
6/30/99 14,312 36,514
6/30/00 15,544 45,883
6/30/01 11,994 29,287
6/30/02 7,941 21,529
6/30/03 7,677 22,162
PAST PERFORMANCE IS NOT PREDICTIVE OF FUTURE PERFORMANCE. INVESTMENT RETURN AND
PRINCIPAL WILL FLUCTUATE SO THAT AN INVESTOR'S SHARES, WHEN REDEEMED, MAY BE
WORTH MORE OR LESS THAN THEIR ORIGINAL COST.
Average Annual Total Return Before Taxes*
As of June 30, 2003
1 Year 5 Year 10 Year
------ ------ -------
Lindner Large-Cap Growth Fund
(inception 5/24/73) (3.32%) (14.27%) (2.61%)
Russell 1000 Growth Index** 2.94% (5.03%) 8.28%
* The graph above and the table below do not reflect the deduction of taxes
that a shareholder would pay on distributions or the redemption of shares.
** The Russell 1000 Growth Index measures the performance of those Russell
1000 companies with higher price-to-book ratios and higher forecasted
growth values. The Russell 1000 Growth Index is unmanaged and includes the
reinvestment of all dividends, but does not reflect the payments of
transaction costs and advisory fees associated with an investment in the
Fund. Note: You cannot invest directly in an index.
As of June 30, 2003, the Fund had a strong focus on consumer discretionary
stocks and healthcare, which helped us to offset a portion of our energy
holdings. Examples of consumer discretionary companies in our portfolio that
achieved above-average performance are: The Gap [NYSE: GPS], Wal-Mart Stores
[NYSE: WMT], e-Bay, Inc. [NASDAQ NM: EBAY], Comcast Corp. [NASDAQ: CMCSK], and
Harman Intl. [NYSE: HAR]. Strategic healthcare portfolio holdings that performed
particularly well include biotech names such as Amgen, Inc. [NASDAQ: AMGN],
Genentech, Inc. [NYSE: DNA], and Gilead Sciences [NASDAQ: GILD].
Among our disappointments for the first half of calendar 2003 was, as mentioned,
the overweight in the energy sector. Holdings such as BJ Services Company [NYSE:
BJS], Smith International [NYSE: SII] and Nabors Industries, Ltd. [AMEX: NBR],
produced positive earnings, but did not perform up to our expectations, as
investors were reluctant to pay higher multiples. Comcast Corp., Microsoft
[NASDAQ: MSFT], which is a sizeable holding in our portfolio, and 3M Co. [NYSE:
MMM] also did not perform to our expectations.
We believe that the best way for Lindner Large-Cap Growth Fund to produce strong
performance is to identify companies that are positioned to thrive in a
slow-growing worldwide economic environment. We will continue to seek companies
that exhibit the ability to increase return on capital by accelerating revenue
growth and not just via cost controls. We also favor companies that operate in
market segments that are less encumbered with excess capacity.
As we write this letter, corporate earnings are being released for the second
quarter of calendar 2003, and appear to be meeting expectations. For the first
time in two years, earnings in aggregate have been net positive for two
consecutive quarters, and this may prove to be a welcome sign for equity
investors. This has been a notable element absent in other market rallies, thus
there is fundamental reason for the market to be more optimistic.
/s/ Jerome A. Castellini /s/ Robert S. Takazawa Jr
Jerome A. Castellini Robert S. Takazawa, Jr., CFA
Portfolio Manager Portfolio Manager
CastleArk Asset Management, LLC CastleArk Asset Management, LLC
Investment performance reflects voluntary fee waivers in effect. In the absence
of such waivers, total return would be reduced.
Lindner Investments
Schedule of Investments - June 30, 2003
Number of
Shares -
Principal
Amount
Name of Issuer and Title of Issue of Bonds Value
- --------------------------------------------------------------------------------
Lindner Large-Cap Growth Fund
Common Stocks (95.91%)
Aerospace/Defense (2.74%)
L-3 Communications Holdings, Inc.* 58,000 $ 2,522,420
-------------
Airfreight & Logistics (1.29%)
FedEx Corp. 19,200 1,190,976
-------------
Airlines (2.97%)
Southwest Airlines Co. 159,200 2,738,240
-------------
Aluminum (2.23%)
Alcoa Inc. 80,700 2,057,850
-------------
Application Software (2.95%)
Intuit Inc.* 53,100 2,364,543
SpeechWorks International Inc.* 74,300 349,210
-------------
2,713,753
-------------
Biotechnology (8.33%)
Amgen Inc.* 46,600 3,096,104
Genentech, Inc.* 42,600 3,072,312
Gilead Sciences, Inc.* 27,000 1,500,660
-------------
7,669,076
-------------
Broadcasting & Cable (2.73%)
Comcast Corporation - Special Class A* 83,200 2,510,976
-------------
Chemicals (Diverse) (1.07%)
The Dow Chemical Company 31,800 984,528
-------------
Computer Hardware (3.68%)
Dell Computer Corporation* 106,100 3,390,956
-------------
Consumer Electronics (2.41%)
Harman International Industries,
Incorporated 28,000 2,215,920
-------------
Diversified Banks (6.21%)
Bank of America Corporation 37,000 2,924,110
J.P. Morgan Chase & Co. 81,800 2,795,924
-------------
5,720,034
-------------
Health Care (Distributors) (2.45%)
AmerisourceBergen Corporation 32,500 2,253,875
-------------
Health Care (Medical Devices) (5.34%)
Baxter International Inc. 75,800 1,970,800
Boston Scientific Corporation* 29,900 1,826,890
Medtronic, Inc. 23,400 1,122,498
-------------
4,920,188
-------------
Hypermarkets & Supercenters (2.03%)
Wal-Mart Stores, Inc. 34,900 1,873,083
-------------
Industrial Congomerates (3.12%)
Minnesota Mining and Manufacturing
Company (3M) 22,300 2,876,254
-------------
Insurance Brokers (2.26%)
Arthur J. Gallagher & Co. 76,400 2,078,080
-------------
Investment Banking & Brokerage (1.97%)
The Goldman Sachs Group, Inc. 21,700 1,817,375
-------------
Leisure Products (1.31%)
Mattel, Inc. 63,900 1,208,988
-------------
Machinery (Industrial) (2.18%)
Parker-Hannifin Corporation 47,900 2,011,321
-------------
See Notes to Financial Statements
Number of
Shares -
Principal
Amount
Name of Issuer and Title of Issue of Bonds Value
- --------------------------------------------------------------------------------
Oil & Gas (Drilling Equipment) (5.77%)
GlobalSantaFe Corporation 111,510 $ 2,602,644
Nabors Industries Ltd.*F 44,900 1,775,795
Rowan Companies, Inc.* 41,800 936,320
-------------
5,314,759
-------------
Oil & Gas (Equipment/Services) (4.87%)
BJ Services Company* 47,300 1,767,128
Schlumberger Limited 57,200 2,721,004
-------------
4,488,132
-------------
Oil & Gas (Exploration & Production) (1.93%)
Apache Corporation 27,300 1,776,138
-------------
Personal Products (2.72%)
Avon Products, Inc. 40,300 2,506,660
-------------
Pharmaceuticals (2.31%)
Pfizer Inc. 62,300 2,127,545
-------------
Reinsurance (1.57%)
RenaissanceRe Holdings Ltd.F 31,700 1,442,984
-------------
Restaurants (1.36%)
Starbucks Corporation* 51,100 1,252,972
-------------
Retail (Apparel) (3.50%)
Chico's FAS, Inc.* 48,600 1,023,030
The Gap, Inc. 117,400 2,202,424
-------------
3,225,454
-------------
Retail (Internet) (2.60%)
EBay Inc.* 23,000 2,396,140
-------------
Semiconductors (4.84%)
Intel Corporation 50,000 1,039,200
Microchip Technology Incorporated 35,526 875,005
Texas Instruments Incorporated 144,000 2,534,400
-------------
4,448,605
-------------
Systems Software (4.36%)
Microsoft Corporation 103,400 2,648,074
VERITAS Software Corporation* 47,300 1,356,091
-------------
4,004,165
-------------
Trade Companies & Distributors (2.81%)
Fastenal Company 76,000 2,579,440
-------------
Total Common Stocks
(Cost $82,433,166) 88,316,887
-------------
Short-Term Investments (2.70%)
Lindner Government Money
Market Funda 2,483,041 2,483,041
-------------
Total Short-Term Investments
(Cost $2,483,041) 2,483,041
-------------
Total Investments (98.61%)
(Cost $84,916,207) 90,799,928
-------------
Excess of Other Assets over Liabilities (1.39%) 1,280,354
-------------
Net Assets (100.00%) $ 92,080,282
=============
* Non-income producing.
a Denotes security is affiliated. (See Note 4)
F Foreign security.
Performance Summary
With the primary objective of long-term capital appreciation, Lindner Growth and
Income Fund returned 9.61% in the first half of calendar 2003 compared to the
8.76% return of its benchmark, a 60/40 blend of the S&P 500 and Lehman Brothers
Intermediate Government/Credit Bond Index. For the fiscal year ending June 30,
2003, the Fund returned 0.17% compared to the 4.49% return of its benchmark.
As of June 30, 2003, 87% of the Fund was allocated to equities and 13% was
invested in fixed income, which helped lower the degree of risk of the overall
portfolio.
Last September, the portfolio management team at Argent Capital Management
welcomed a new member, Ken Crawford, who previously was a portfolio manager with
American Century. He joined Argent's investment team and assists John Meara and
Steven Finerty in stock analysis and portfolio management.
The difficult market conditions for most of the first nine months of the fiscal
year gave way to a more positive environment in the second quarter of calendar
2003, which was characterized by increased corporate profits that were prompted,
in great part, by productivity enhancements.
Consumers also continued to support the economy, as mortgage refinancing and tax
cuts increased discretionary income.
We maintained our bottom-up approach, which focuses on companies with proven
management teams that are executing appropriate business strategies. We
particularly favor companies with high cash flows that are able to reinvest
their assets in high growth initiatives, and whose stocks are selling at
reasonable valuations. We also like companies that have the ability to execute
on a strategy of shrinking their assets when their returns are poor. We avoid
market timing or making large sector bets.
In view of our approach and the market environment, our portfolio at the end of
the period had a relatively heavier exposure to healthcare companies and to the
financial sector. We also favored the industrial sector. Our underweight
positions were in sectors with high valuations and excess capacity, including
consumer staples, telecommunications and information technology.
(continued on next page)
Lindner Growth and Income Fund
PERFORMANCE GRAPH
Comparison of change in value of $10,000 invested 40% in the Lehman Brothers
Intermediate Government/Credit Bond Index and 60% in the S&P 500 Index with the
Lindner Growth and Income Fund from June 30, 1993 to June 30, 2003.
[LINE CHART]
Growth & Income S&P 500/Lehman S&P 500
6/30/93 10,000 10,000 10,000
6/30/94 10,149 10,075 10,141
6/30/95 11,348 12,068 12,785
6/30/96 13,179 14,193 16,109
6/30/97 14,332 17,558 21,699
6/30/98 16,446 21,335 28,243
6/30/99 15,530 24,606 34,671
6/30/00 14,679 26,092 37,185
6/30/01 15,087 24,923 31,670
6/30/02 12,934 23,047 25,973
6/30/03 12,956 24,081 26,038
PAST PERFORMANCE IS NOT PREDICTIVE OF FUTURE PERFORMANCE. INVESTMENT RETURN AND
PRINCIPAL WILL FLUCTUATE SO THAT AN INVESTOR'S SHARES, WHEN REDEEMED, MAY BE
WORTH MORE OR LESS THAN THEIR ORIGINAL COST.
Average Annual Total Return Before Taxes*
As of June 30, 2003
1 Year 5 Year 10 Year
------ ------ -------
Lindner Growth and Income Fund
(inception 6/22/76) 0.17% (4.66%) 2.62%
S&P 500 (60)/Lehman Brothers
Government/Credit Bond (40)** 4.49% 2.45% 9.18%
S&P 500 Index** 0.25% (1.61%) 10.04%
* The graph above and the table below do not reflect the deduction of taxes
that a shareholder would pay on distributions or the redemption of shares.
** S&P 500 Index is a broad based unmanaged index of 500 stocks, which is
widely recognized as representative of the equity market in general. The
Lehman Brothers Intermediate Government/Credit Bond Index is a market value
weighted performance benchmark which includes virtually every major U.S.
Government and investment-grade rated corporate bond with 1-10 years
remaining until maturity. The S&P 500 Index and the Lehman Brothers
Intermediate Government/Credit bond Index are unmanaged and include the
reinvestment of all dividends, but do not reflect the payment of
transaction costs and advisory fees associated with an investment in the
Fund. Note: You cannot invest directly in an index.
One of the better performers in the Fund in the past fiscal year was Aetna, Inc.
(NYSE: AET), the third largest healthcare benefit company, with operations in
healthcare, insurance and pensions. Our analysis concluded that the company's
earnings power was dramatically underestimated by the market, which was slow to
note that a new management team had executed, in our opinion, an appropriate
downsizing strategy.
Jabil Circuit, Inc. (NYSE: JBL) also performed above expectations. Jabil is a
primary beneficiary of the need for manufacturers to outsource in order to stay
competitive in a high-speed market environment. Jabil has achieved market share
growth by developing long-term partnerships with leading equipment
manufacturers, such as Cisco, Philips and Abbott Laboratories. Energizer
Holdings, Inc. (NYSE: ENR), with its purchase of the Schick-Wilkinson razor
franchise, also delivered above-average performance.
Our sell decisions included AOL Time Warner (NYSE: AOL), Schering-Plough (NYSE:
SGP) and Sprint PCS (NYSE: PCS). The timing of these sales ranged from good in
the case of Schering-Plough to disappointing in the case of AOL, who's price has
rebounded since our sale. Sprint PCS, which was one of our best performers in
the fourth quarter of 2002, unexpectedly changed management earlier this year.
All of the decisions to sell were based on one or more of our strict sell
disciplines, prompted by a change of management, a deteriorating competitive
environment or an altered business strategy.
Lindner Growth and Income Fund continues to focus on companies with clear,
compelling business strategies to improve returns on capital.
/s/ Steven L. Finerty /s/ John F. Meara
Steven L. Finerty, JD John F. Meara, CFA
Chairman & Portfolio Manager President & Portfolio Manager
Argent Capital Management Argent Capital Management
Investment performance reflects voluntary fee waivers in effect. In the absence
of such waivers, total return would be reduced.
Lindner Investments
Schedule of Investments - June 30, 2003
Number of
Shares -
Principal
Amount
Name of Issuer and Title of Issue of Bonds Value
- --------------------------------------------------------------------------------
Lindner Growth and Income Fund
Common Stocks (87.34%)
Asset Management (1.65%)
Franklin Resources, Inc. 75,000 $ 2,930,250
-------------
Communications Equipment (2.98%)
Cisco Systems, Inc.* 317,300 5,295,737
-------------
Computer Hardware (0.84%)
International Business Machines
Corporation (IBM) 18,000 1,485,000
-------------
Consumer Finance (2.39%)
MBNA Corporation 204,000 4,251,360
-------------
Diverse Capital Markets (2.78%)
J.P. Morgan Chase & Co. 144,600 4,942,428
-------------
Diverse Financial Services (2.95%)
Citigroup Inc. 122,433 5,240,132
-------------
Diversified Banks (5.04%)
Bank of America Corporation 71,900 5,682,257
Wells Fargo & Company 65,000 3,276,000
-------------
8,958,257
-------------
Electric Utilities (1.28%)
FPL Group, Inc. 34,000 2,272,900
-------------
Electronic Manufacturing Services (2.65%)
Jabil Circuit, Inc.* 213,000 4,707,300
-------------
Health Care-Equipment (1.66%)
Medtronic, Inc. 61,500 2,950,155
-------------
Health Care-Managed Care (4.56%)
Aetna Inc. 134,500 8,096,900
-------------
Household Products (2.65%)
Energizer Holdings, Inc.* 150,000 4,710,000
-------------
Hypermarkets & Supercenters (1.87%)
Wal-Mart Stores, Inc. 62,000 3,327,540
-------------
Industrial Conglomerates (1.62%)
General Electric Company 100,300 2,876,604
-------------
Insurance-Life/Health (2.08%)
Prudential Financial, Inc. 110,000 3,701,500
-------------
Insurance-Property/Casualty (5.43%)
MBIA Inc. 140,000 6,825,000
SAFECO Corporation 80,000 2,822,400
-------------
9,647,400
-------------
Integrated Telecommunication Services (1.09%)
SBC Communications Inc. 76,000 1,941,800
-------------
Investment Banking & Brokerage (1.10%)
Lehman Brothers Holdings Inc. 29,400 1,954,512
-------------
Machinery-Industrial (8.44%)
Dover Corporation 134,000 4,014,640
Eaton Corporation 59,000 4,637,990
Ingersoll-Rand CompanyF 134,000 6,340,880
-------------
14,993,510
-------------
Metal Mining (0.03%)
Uranium Resources, Inc.* 1,583,609 47,508
-------------
See Notes to Financial Statements
Number of
Shares -
Principal
Amount
Name of Issuer and Title of Issue of Bonds Value
- --------------------------------------------------------------------------------
Oil & Gas-Equipment/Services (2.08%)
Baker Hughes Incorporated 110,000 $ 3,692,700
-------------
Oil & Gas-Exploration/Production (0.48%)
Burlington Resources Inc. 15,800 854,306
-------------
Oil & Gas-Integrated (1.63%)
ChevronTexaco Corporation 40,000 2,888,000
-------------
Packaged Foods/Meats (1.49%)
ConAgra Foods, Inc. 112,000 2,643,200
-------------
Pharmaceuticals (9.25%)
Abbott Laboratories 137,000 5,995,120
Johnson & Johnson 73,000 3,774,100
Pfizer Inc. 195,000 6,659,250
-------------
16,428,470
-------------
Publishing (2.58%)
Tribune Company 95,000 4,588,500
-------------
Railroads (1.85%)
Norfolk Southern Corporation 171,000 3,283,200
-------------
Retail-Apparel (1.71%)
The TJX Companies, Inc. 161,000 3,033,240
-------------
Retail-Home Improvement (0.80%)
The Home Depot, Inc. 43,100 1,427,472
-------------
Semiconductors (3.79%)
Intel Corporation 152,600 3,171,639
Texas Instruments Incorporated 202,700 3,567,520
-------------
6,739,159
-------------
Services-Data Processing (1.45%)
First Data Corporation 62,000 2,569,280
-------------
Specialty Stores (2.43%)
AutoZone, Inc.* 16,000 1,215,520
Bed Bath & Beyond Inc.* 80,000 3,104,800
-------------
4,320,320
-------------
Systems Software (3.56%)
Microsoft Corporation 246,800 6,320,548
-------------
Thrifts & Mortgage Financing (1.15%)
Fannie Mae 30,000 2,023,200
-------------
Total Common Stocks
(Cost $165,909,299) 155,142,388
-------------
Corporate Bonds (7.12%)
Aerospace/Defense (0.69%)
Raytheon Company, 8.300%, 3/1/10 $1,000,000 1,230,154
-------------
Diverse Financial Services (1.93%)
Citicorp, 6.375%, 11/15/08 1,000,000 1,150,911
Lehman Brothers, Inc., 7.625%, 6/1/06 1,000,000 1,152,642
Merrill Lynch, 6.000%, 02/17/09 1,000,000 1,125,516
-------------
3,429,069
-------------
Diversified Banks (1.29%)
BankAmerica Corp/Old, 6.625%, 10/15/07 1,000,000 1,150,076
-------------
Wells Fargo Financial Inc., 5.875%, 1,000,000
8/15/08 1,145,893
-------------
2,295,969
-------------
Lindner Investments
Schedule of Investments - June 30, 2003
Number of
Shares -
Principal
Amount
Name of Issuer and Title of Issue of Bonds Value
- --------------------------------------------------------------------------------
Household Products (0.68%)
Procter & Gamble Co, 6.875%, 9/15/09 1,000,000 $ 1,214,272
-------------
Hypermarkets & Supercenters (0.68%)
Wal-Mart Stores, Inc., 6.875%, 8/10/09 1,000,000 1,205,097
-------------
Oil & Gas Refining (0.62%)
Ashland Inc., 6.625%, 2/15/08 1,000,000 1,096,577
-------------
Pharmaceuticals (1.23%)
Abbott Laboratories, 5.625%, 7/01/06 1,000,000 1,108,000
Bristol Myers, 4.750%, 10/01/06 1,000,000 1,077,141
-------------
2,185,141
-------------
Total Corporate Bonds
(Cost $11,240,610) 12,656,279
-------------
U.S. Government Agency Securities (4.82%)
FHLBS, 5.250%, 8/15/06 1,000,000 1,102,399
FHLBS, 4.875%, 8/15/05 1,500,000 1,609,467
FHLBS, 3.625%, 10/15/04 2,000,000 2,062,358
FHLMC, 4.500%, 8/15/04 500,000 518,641
United States Treasury Note, 7.500%,
02/15/05 1,000,000 1,101,563
United States Treasury Note, 4.625%,
5/15/06 2,000,000 2,168,672
-------------
Total U.S. Government Agency
Securities
(Cost $8,106,386) 8,563,100
-------------
Number of
Shares -
Principal
Amount
Name of Issuer and Title of Issue of Bonds Value
Short-Term Investments (0.85%)
Lindner Government Money
Market Funda 1,516,155 $ 1,516,155
-------------
Total Short-Term Investments
(Cost $1,516,155) 1,516,155
-------------
Total Investments (100.13%)
(Cost $186,772,450) 177,877,922
Excess of Liabilities over Other Assets (-0.13%) (241,696)
-------------
Net Assets (100.00%) $ 177,636,226
=============
* Non-income producing.
a Denotes security is affiliated. (See Note 4)
F Foreign security
FHLBS = Federal Home Loan Bank System
FHLMC = Federal Home Loan Mortgage Company
See Notes to Financial Statements
Performance Summary
With an objective of long-term capital appreciation, Lindner Communications Fund
in the first half of calendar 2003 generated a 23.02% return compared to the
11.76% return of the S&P 500 Index. For the fiscal year ended June 30, 2003, the
Fund returned 30.40% versus the S&P 500 Index return of 0.25%.
The telecommunications sector was very strong in the second quarter of this
year, as a positive market environment emerged following the initial hostilities
in Iraq, and as the economy began to show improvement. High liquidity, low
interest rates and lower taxes on dividends were all constructive. It appears
the dividend legislation had an especially positive effect on large
capitalization companies - including regional Bells and long-distance carriers -
that were already paying sizable dividends.
Low interest rates and a receptive bond market during most of the fiscal year
also helped the sector. Telecoms with balance sheet problems, especially among
the mid-caps, were able to refinance at much lower rates and to extend the
maturity of their debt. In addition, refinancing allowed these companies to
renegotiate many of the more restrictive terms in their covenants. One of our
holdings that benefited from this trend was Western Wireless Corporation (Nasdaq
NM: WWCA), a leading provider of communications services in the western U.S.
The wireless industry, which we have favored for some time, continued to exhibit
strong fundamentals and good cash flow growth. The favorable financing
environment we have experienced in recent months has resulted in successful IPOs
for the first time in several years.
(continued on next page)
Lindner Communications Fund
PERFORMANCE GRAPH
Comparison of change in value of $10,000 invested in the S&P 500 Index and the
Lindner Communications Fund from August 30, 1993 to June 30, 2003.
[LINE CHART]
Communications S&P500
8/30/93 10,000 10,000
6/30/94 10,039 9,809
6/30/95 11,294 12,366
6/30/96 15,291 15,581
6/30/97 17,476 20,989
6/30/98 20,192 27,318
6/30/99 21,932 33,536
6/30/00 29,056 35,967
6/30/01 17,727 30,633
6/30/02 9,250 25,122
6/30/03 12,062 25,185
PAST PERFORMANCE IS NOT PREDICTIVE OF FUTURE PERFORMANCE. INVESTMENT RETURN AND
PRINCIPAL WILL FLUCTUATE SO THAT AN INVESTOR'S SHARES, WHEN REDEEMED, MAY BE
WORTH MORE OR LESS THAN THEIR ORIGINAL COST.
Average Annual Total Return Before Taxes*
As of June 30, 2003
1 Year 5 Year Inception
------ ------ ---------
Lindner Communications Fund
(inception 8/30/93) 30.40% (9.79%) 1.92%
S&P 500 Index** 0.25% (1.61%) 9.84%
* The graph above and the table below do not reflect the deduction of taxes
that a shareholder would pay on distributions or the redemption of shares.
** S&P 500 Index is a broad based unmanaged index of 500 stocks, which is
widely recognized as representative of the equity market in general. The
S&P 500 Index is unmanaged and includes the reinvestment of all dividends,
but does not reflect the payments of transaction costs and advisory fees
associated with an investment in the Fund. Note: You cannot invest directly
in an index.
One of the most important criteria we look at is a company's ability to control
the customer. For this reason, we favored local exchange companies, such as
regional Bells and rural telephone companies. We also focused on the wireless
industry and the integrated communications players. Among these were some
foreign companies, including Deutsche Telekom (NYSE: DT), Bell Canada
Enterprises (NYSE: BCE) and Telecom Italia SpA (NYSE: TI). Our exposure to long
distance, technology and equipment companies was limited, in part because of a
more limited ability to protect their respective franchises.
During the last quarter, we fine-tuned the portfolio, which we believed was
already well positioned to take advantage of any rally. Although most of our
holdings were up in the last three months, we had a few underperformers. Among
these were U.S. Cellular (AMEX: USM) and Alltel (NYSE: AT), both of which rose
less than their peers.
For the year, our disappointments occurred in market segments where we
considered valuations to be very attractive, including the long-distance
industry and companies such as AT&T and Sprint. Another disappointment was that
we omitted certain selected, strong-performing stocks in areas which we had
deemphasized, like small tech stocks.
The telecom industry is currently growing faster than the economy, and it also
appears to be effectively addressing its structural problems. Compared to three
years ago, many telecom companies are better positioned in regard to capacity
and have healthier balance sheets.
Lindner Communications Fund continues to focus on companies with clear,
compelling business strategies.
/s/ Ivan Atreaga
Ivan Arteaga, CFA
Vice President & Associate Portfolio Manager
Gabelli Asset Management Company
Funds whose investments are concentrated in a specific industry or sector may be
subject to a higher degree of market risk than funds whose investments are
diversified.
Investment performance reflects voluntary fee waivers in effect. In the absence
of such waivers, total return would be reduced.
Lindner Investments
Schedule of Investments - June 30, 2003
Number of
Shares -
Principal
Amount
Name of Issuer and Title of Issue of Bonds Value
- --------------------------------------------------------------------------------
Lindner Communications Fund
Common Stocks (97.20%)
Cable & Other Pay Television
Services (9.81%)
Cablevision Systems Corporation-
New York Group* 4,581 $ 95,102
Comcast Corporation* 6,234 188,142
COX Communications, Inc.* 1,000 31,900
EchoStar Communications Corporation* 4,000 138,480
Liberty Media Corporation* 29,000 335,240
UnitedGlobalCom, Inc.* 6,400 33,088
-------------
821,952
-------------
Communications Equipment (2.68%)
Allen Telecom Inc.* 5,000 82,600
Motorola, Inc. 6,000 56,580
Nokia OYJ - ADR 1,300 21,359
Nortel Networks Corporation*F 5,900 15,930
Scientific-Atlanta, Inc. 2,000 47,680
-------------
224,149
-------------
Incumbent Local Exchange Carriers
(15.89%)
CenturyTel, Inc. 14,000 487,900
Cincinnati Bell Inc.* 25,000 167,500
Citizens Communications Company* 18,000 232,020
Commonwealth Telephone Enterprises, 6,000 263,820
Inc.*
D&E Communications, Inc. 5,097 58,361
SureWest Communications 2,000 60,500
SCANA Corporation 1,800 61,704
-------------
1,331,805
-------------
Integrated Telecommunication Services (42.35%)
AT&T Corp. 5,040 97,020
ALLTEL Corporation 4,000 192,880
BCE Inc.F 11,000 254,210
BT Group plc - ADR 1,800 60,588
BellSouth Corporation 7,000 186,410
Cable and Wireless plc - ADR 14,000 76,580
Deutsche Telekom AG - ADR 16,000 243,200
General Communication, Inc.* 5,000 43,300
IDT Corporation* 5,000 89,500
Koninklijke KPN NV* - ADR 5,000 35,650
Nextel Partners, Inc.* 9,000 65,700
Nippon Telegraph & Telephone
Corporation - ADR 2,400 47,520
Philippine Long Distance Telephone
Company* - ADR 4,000 43,080
Qwest Communications International 14,000 66,920
Inc.*
Rogers Communications, Inc.F 13,500 216,675
SBC Communications, Inc. 6,000 153,300
SK Telecom Co., Ltd. - ADR 4,000 75,440
Sprint Corporation 11,000 158,400
Swisscom AG - ADR 5,000 141,700
Telecom Italia SpA. - ADR 1,500 135,960
Telefonica, S.A. - ADR 6,242 215,786
Telefonos de Mexico S.A. de C.V. - 2,700 84,834
ADR
Telephone & Data Systems, Inc. 9,000 447,300
TELUS CorporationF 5,000 82,500
Verizon Communications Inc. 8,000 315,600
Vivendi Universal S.A.* - ADR 1,000 18,440
-------------
3,548,493
-------------
See Notes to Financial Statements
Number of Shares
-
Principal Amount
Name of Issuer and Title of Issue of Bonds Value
- --------------------------------------------------------------------------------
Other Communication Services (1.89%)
Lockheed Martin Corporation 1,000 $ 47,570
PanAmSat Corporation* 6,000 110,580
-------------
158,150
-------------
Printing & Publishing (0.75%)
Media General, Inc. 200 11,440
R.H. Donnelley Corporation* 1,000 36,470
The News Corporation Ltd. - ADR 500 15,135
-------------
63,045
-------------
Radio & Television Broadcasting Stations (0.58%)
CanWest Global Communications Corp.*F 2,800 18,340
Paxson Communications Corporation* 5,000 29,950
-------------
48,290
-------------
Search, Detection & Navigation Equipment (1.53%)
General Motors Corporation - Class H* 10,000 128,100
-------------
Wireless Telecommunication Services (21.72%)
AT&T Wireless Services Inc.* 16,000 131,360
America Movil S.A. de C.V. - ADR 3,500 65,625
AO VimpelCom* - ADR 1,800 83,592
mmO2 plc* - ADR 5,000 46,150
Nextel Communications, Inc.* 20,000 361,600
NTT DoCoMo, Inc. - ADR 7,500 164,850
Price Communications Corporation* 5,000 64,550
Rogers Wireless Communications, Inc.* F 17,000 287,300
Sprint Corporation (PCS Group)* 15,000 86,250
Telecom Italia Mobile S.p.A.F 20,000 98,530
TeliaSonera AB - ADR 6,057 125,010
United States Cellular Corporation* 6,000 152,700
Vodafone Group plc - ADR 2,800 55,020
Western Wireless Corporation* 8,500 98,005
-------------
1,820,542
-------------
Total Common Stocks
(Cost $8,951,636) 8,144,526
-------------
Short-Term Investments (3.44%)
Lindner Government Money
Market Funda 288,159 288,159
-------------
Total Short Term Investments
(Cost $288,159) 288,159
-------------
Total Investments (100.64%)
(Cost $9,239,795) 8,432,685
Excess of Liabilities over Other Assets (-0.64%) (53,381)
-------------
Net Assets (100.00%) $ 8,379,304
-------------
* Non-income producing.
a Denotes security is affiliated. (See Note 4)
F Foreign Security
ADR - American Depository Receipt
Performance Summary
With an objective of capital appreciation, Lindner Small-Cap Growth Fund in the
first half of calendar 2003 generated a 15.85% return compared to the 19.33%
return of its benchmark, the Russell 2000 Growth Index. For the fiscal year
ended June 30, 2003, the Fund generated a -8.63% return versus the 0.69% return
of the Russell 2000 Growth Index.
The past year has been a tale of two markets. We started the fiscal year in a
pronounced bear environment and ended it with the strongest quarter since 1991
for small cap stocks.
A year ago, we were cautiously optimistic about small caps versus large caps.
However, as market pressures eased in the first quarter of calendar 2003, the
market began to reward risk-taking. Investors rushed into low-cost stocks that
had exhibited little or no earnings. The result was a low quality rally that
rewarded non-earning micro-caps. The same phenomenon was repeated in May,
resulting in illiquid micro-caps outperforming higher quality small caps.
As signs of an economic pickup became evident, we adjusted our portfolio to
include stocks that we believed would respond positively to improving economic
conditions. Among the stocks we acquired were cyclical companies, including EGL,
Inc. (Nasdaq: EAGL), a third-party logistics company that arranges shipments of
products all over the world, and Airgas, Inc. (NYSE: ARG), a distributor of
industrial, medical and specialty gases.
Another area we found attractive was healthcare, particularly biotechnology. In
contrast to last year, when we held no biotech stocks, 7.65% of the portfolio
was in these issues as of June 30, 2003, which is an overweight compared with
the 4.60% weighting of the Russell 2000 Growth Index. This change in our biotech
exposure was prompted by announcements from a growing number of companies that
they were poised to introduce products to the market or had obtained approvals
for new products that could represent breakthroughs.
(continued on next page)
Lindner Small-Cap Growth Fund
PERFORMANCE GRAPH
Comparison of change in value of $10,000 invested in the Russell 2000 Growth
Index and the Lindner Small-Cap Growth Fund from January 24, 1994 to June 30,
2003.
[LINE CHART]
Small-Cap Growth Russell 2000 Growth
1/24/94 10,000 10,000
6/30/94 9,580 8,890
6/30/95 10,953 11,190
6/30/96 13,768 14,154
6/30/97 17,204 14,805
6/30/98 19,826 16,758
6/30/99 19,848 18,148
6/30/00 23,075 23,301
6/30/01 21,557 17,862
6/30/02 15,637 13,397
6/30/03 14,288 13,489
PAST PERFORMANCE IS NOT PREDICTIVE OF FUTURE PERFORMANCE. INVESTMENT RETURN AND
PRINCIPAL WILL FLUCTUATE SO THAT AN INVESTOR'S SHARES, WHEN REDEEMED, MAY BE
WORTH MORE OR LESS THAN THEIR ORIGINAL COST.
Average Annual Total Return Before Taxes*
As of June 30, 2003
1 Year 5 Year Inception
------ ------ ---------
Lindner Small-Cap Growth Fund
(inception 1/24/94) (8.63%) (6.34%) 3.85%
Russell 2000 Growth Index** 0.69% (4.24%) 3.06%
* The graph above and the table below do not reflect the deduction of taxes
that a shareholder would pay on distribution or the redemption of shares.
** The Russell 2000 Growth Index measures the performance of those Russell
2000 companies with higher price-to-book ratios and higher forecasted
growth values. The Russell 2000 Growth Index is unmanaged and includes the
reinvestment of all dividends, but does not reflect the payments of
transaction costs and advisory fees associated with an investment in the
Fund. Note: You cannot invest directly in an index.
In the consumer discretionary area, we found attractive niche players. One of
them, and one of our largest holdings, is Strayer Education, Inc. (Nasdaq:
STRA), an education services holding company that owns Strayer University
Online, its fastest growing division.
We did not find many attractive growth opportunities in the financial sector in
the first half of 2003, and consequently, we were underweighted in financials.
We avoided REITs and utilities because of our focus on top-line growth of 15% or
better, which these businesses generally do not generate.
Among our disappointments was the energy sector, which did not produce the
results we had expected. Additionally, HPL Technologies cost us more than 1.5%
in overall performance due to their suspected fraudulent activities.
Our leading performer was OmniVision Technologies, Inc. (Nasdaq: OVTI), a
company that develops and markets semiconductor imaging devices for surveillance
and digital cameras. However, we continue to underweight technology, inasmuch as
we believe that the fundamentals of many tech stocks do not justify the sharp
rise in their prices.
Lindner Small-Cap Growth Fund continues to focus on small companies with clear,
compelling business strategies.
/s/ Stephen J. Wisneski /s/ Roger H. Stamper
Stephen J. Wisneski, CFA Roger H. Stamper, CFA
Portfolio Manager Portfolio Manager
CastleArk Management, LLC CastleArk Management, LLC
Investment performance reflects voluntary fee waivers in effect. In the absence
of such waivers, total return would be reduced.
The Fund invests in smaller companies, which may involve additional risks such
as limited liquidity and greater volatility.
Lindner Investments
Schedule of Investments - June 30, 2003
Number of
Shares -
Principal
Amount
Name of Issuer and Title of Issue of Bonds Value
- --------------------------------------------------------------------------------
Lindner Small-Cap Growth Fund
Common Stocks (97.01%)
Airfreight & Logistics (1.45%)
EGL, Inc.* 7,100 $ 107,920
----------
Apparel & Accessories (1.72%)
Quicksilver, Inc.* 7,800 128,622
----------
Application Software (0.60%)
EPIQ Systems, Inc.* 2,600 44,642
----------
Biotechnology (7.65%)
Amylin Pharmaceuticals, Inc.* 3,800 83,182
Atrix Laboratories, Inc.* 3,400 74,766
Neurocrine Biosciences, Inc.* 1,600 79,904
Sepracor Inc.* 3,100 55,893
Tanox, Inc.* 3,700 59,385
Telik, Inc.* 4,900 78,743
The Medicines Company* 3,800 74,822
Trimeris, Inc.* 1,400 63,952
----------
570,647
----------
Broadcasting & Cable (0.76%)
Spanish Broadcasting System, Inc.* 7,000 57,050
----------
Casinos & Gaming (4.75%)
Alliance Gaming Corporation* 7,100 134,261
Boyd Gaming Corporation* 5,600 96,656
Shuffle Master, Inc.* 4,200 123,438
----------
354,355
----------
Communications Equipment (5.99%)
Avocent Corporation* 5,000 149,650
F5 Networks, Inc.* 6,600 111,210
McDATA Corporation* 6,200 90,954
NetScreen Technologies, Inc.* 4,200 94,710
----------
446,524
----------
Diverse Metal/Mining (1.20%)
Massey Energy Company 6,800 89,420
----------
Electronic Equipment (4.47%)
FLIR Systems, Inc.* 5,800 174,870
OSI Systems, Inc.* 4,900 78,694
Veeco Instruments Inc.* 4,700 80,041
----------
333,605
----------
Footwear (1.39%)
K-Swiss, Inc. 3,000 103,560
----------
Health Care - Equipment (2.31%)
Gen-Probe Incorporated* 900 36,783
Thoratec Corporation* 9,100 135,590
----------
172,373
----------
Health Care - Facility (3.13%)
Select Medical Corporation* 4,200 104,286
VCA Antech, Inc.* 6,600 129,162
----------
233,448
----------
Health Care - Managed Care (1.80%)
AMERIGROUP Corporation* 3,600 133,920
----------
Health Care - Services (4.59%)
IMPAC Medical Systems, Inc.* 2,500 52,200
----------
See Notes to Financial Statements
Number of
Shares -
Principal
Amount
Name of Issuer and Title of Issue of Bonds Value
- --------------------------------------------------------------------------------
Odyssey Healthcare, Inc.* 4,700 $ 173,900
VistaCare, Inc.* 4,800 116,688
----------
342,788
----------
Health Care - Supplies (2.68%)
Advanced Neuromodulation Systems, 1,500 77,655
Inc.*
Interpore International, Inc.* 4,400 56,012
Kyphon Inc.* 4,400 66,528
----------
200,195
----------
Industrial Gases (1.32%)
Airgas, Inc. 5,900 98,825
----------
Internet Software & Services (4.30%)
Altiris, Inc.* 3,400 68,170
At Road, Inc.* 7,700 84,084
Digital River, Inc.* 4,700 90,710
j2 Global Communications, Inc.* 1,700 78,166
----------
321,130
----------
Investment Banking & Brokerage (0.74%)
Ameritrade Holding Corporation* 7,400 54,834
----------
IT Consulting & Services (1.01%)
CACI International Inc.* 2,200 75,460
----------
Machinery - Construction/Farming (1.03%)
Oshkosh Truck Corporation 1,300 77,116
----------
Machinery - Industrial (1.77%)
ESCO Technologies Inc.* 3,000 132,000
Oil & Gas - Drilling (2.34%)
Grey Wolf, Inc.* 19,400 78,376
Unit Corporation* 4,600 96,186
----------
174,562
----------
Oil & Gas - Equipment/Services (1.55%)
Key Energy Services, Inc.* 10,800 115,776
----------
Oil & Gas - Exploration & Production (2.04%)
Evergreen Resources, Inc.* 2,800 152,068
----------
Oil & Gas - Integrated (0.81%)
Tesoro Petroleum Corporation* 8,800 60,544
----------
Pharmaceuticals (2.40%)
American Pharmaceutical Partners, Inc.* 3,200 108,480
Connetics Corporation* 4,700 70,359
----------
178,839
----------
Photographic Products (1.25%)
Lexar Media, Inc.* 9,800 93,492
----------
Regional Banks (3.35%)
East West Bancorp, Inc. 2,700 97,578
UCBH Holdings, Inc. 5,300 152,004
----------
249,582
----------
Restaurants (3.29%)
P.F. Chang's China Bistro, Inc.* 2,300 113,183
Panera Bread Company* 3,300 132,000
----------
245,183
----------
Retail - Apparel (3.44%)
Chico's FAS, Inc.* 5,800 122,090
Hot Topic, Inc.* 5,000 134,550
----------
256,640
----------
Lindner Investments
Schedule of Investments - June 30, 2003
Number of
Shares -
Principal
Amount
Name of Issuer and Title of Issue of Bonds Value
- --------------------------------------------------------------------------------
Retail - Internet (1.47%)
Netflix Inc.* 4,300 $ 109,865
----------
Semiconductors (3.50%)
Integrated Circuit Systems, Inc.* 2,900 91,147
Power Integrations, Inc.* 3,900 94,848
Zoran Corporation* 3,900 74,919
260,914
Services - Data Processing (1.13%)
Alliance Data Systems Corporation* 3,600 84,240
----------
Services - Diversified/Commercial (5.09%)
Portfolio Recovery Associates, Inc.* 3,700 115,403
Strayer Education, Inc. 2,000 158,900
The Corporate Executive Board Company* 2,600 105,378
----------
379,681
----------
Services - Environmental (3.45%)
Stericycle, Inc.* 3,500 134,680
Waste Connections, Inc.* 3,500 122,675
----------
257,355
----------
Specialty Stores (7.24%)
Aaron Rents, Inc. 3,600 92,880
Guitar Center, Inc.* 4,600 133,400
Movie Gallery, Inc.* 3,900 71,955
Regis Corporation 2,700 78,435
Rent-A-Center, Inc.* 700 53,067
Tractor Supply Company* 2,300 109,825
----------
539,562
----------
Total Common Stocks
(Cost $5,689,851) 7,236,737
----------
Number of
Shares -
Principal
Amount
Name of Issuer and Title of Issue of Bonds Value
- --------------------------------------------------------------------------------
Short-Term Investments (1.60%)
Lindner Government Money Market Fund a 119,409 $ 119,409
----------
Total Short-Term Investments
(Cost $119,409) 119,409
----------
Total Investments (98.61%)
(Cost $5,809,260) 7,356,146
Excess of Other Assets over 103,910
----------
Liabilities (1.39%)
Net Assets (100.00%) $ 7,460,056
============
*Non-income producing.
a Denotes security is affiliated. (See Note 4)
See Notes to Financial Statements
Performance Summary
With the primary objective of long-term capital appreciation in both bull and
bear markets, Lindner Market Neutral Fund returned 2.71% in the first half of
calendar 2003 compared to a 0.56% return of its benchmark, the 90-day T-Bill
Index. For the fiscal year ending June 30, 2003, the Fund returned 3.24%
compared to the benchmark's return of 1.29%.
Effective July 1, 2003, Standish Mellon, the sub-advisor of Lindner Market
Neutral Fund, was reorganized into The Boston Company Asset Management (TBCAM).
Both TBCAM and Standish Mellon share the same parent company, Mellon Financial
Corporation. This reorganization was strategically engineered to take advantage
of the significant distribution potential of TBCAM, and will have no effect on
either the portfolio management team or its investment process.
During the past twelve months, worldwide financial markets continued to be
afflicted by high volatility, which caused different sectors in the U.S. to move
in and out of favor in somewhat dramatic fashion. To effectively address these
trends, our Fund maintained rigorous risk control and tight sector hedging
strategies. However, this did not limit our ability to take advantage of the
numerous opportunities presented by the markets. Our research enabled us to
scale-back or sell short stocks we considered to be overvalued and build
positions in underperforming stocks. Our research also was instrumental in
recognizing, at an early stage, a number of companies - especially in cyclical
industries - that had significant potential to benefit from an economic rebound.
In response to the highly volatile environment of the past twelve months, our
Fund has remained fully hedged, keeping the net long/short position close to
zero. We limited the portfolio's technology exposure, as the return potential of
this sector relative to volatility did not justify establishing significant
exposure. Our investment strategy favored a reduction of both long and short
positions in consumer shares because of their poor performance, and a gradual
increase in healthcare stocks, which were strong performers.
(continued on next page)
Lindner Market Neutral Fund
PERFORMANCE GRAPH
Comparison of change in value of $10,000 invested in the 90-Day T-Bill Index and
the Lindner Market Neutral Fund from February 11, 1994 (inception) to June 30,
2003.
[LINE CHART]
Market Neutral 90 day T-Bill
-------------- -------------
2/11/94 10,000 10,000
6/30/94 10,243 10,156
6/30/95 10,253 10,704
6/30/96 12,657 11,267
6/30/97 10,324 11,849
6/30/98 9,283 12,460
6/30/99 9,682 13,031
6/30/00 11,546 13,729
6/30/01 11,844 14,452
6/30/02 11,004 14,759
6/30/03 11,361 14,950
PAST PERFORMANCE IS NOT PREDICTIVE OF FUTURE PERFORMANCE. INVESTMENT RETURN AND
PRINCIPAL WILL FLUCTUATE SO THAT AN INVESTOR'S SHARES, WHEN REDEEMED, MAY BE
WORTH MORE OR LESS THAN THEIR ORIGINAL COST.
Average Annual Total Return Before Taxes*
As of June 30, 2003
1 Year 5 Year Inception
------ ------ ---------
Lindner Market Neutral Fund
(inception 2/11/94) 3.24% 4.12% 1.37%
90-Day T-Bill Index** 1.29% 3.71% 4.36%
* The graph above and the table below do not reflect the deduction of taxes
that a shareholder would pay on distribution or the redemption of shares.
** The 90-day Treasury Bills contract trades on the International Monetary
Market (IMM) of the Chicago Mercantile Exchange (CME) with a face value of
$1,000,000. The 90-day Treasury Bills Index is unmanaged and includes the
reinvestment of the dividends, but does not reflect the payments of
transactions costs and advisory fees associated with an investment in the
Fund.
In the beginning of calendar 2003, the Fund also increased its allocation to
ADRs to nearly 10% of the portfolio in both long and short positions. ADRs
enabled us to take advantage of the potential offered by foreign markets in a
cost effective fashion, without exposing the Fund to currency risk
During the past year, our focus on P/E ratios and other indicators enabled the
fund to sell biotech, life science and equipment stocks at a time when
investors' expectations for these sectors remained very high. Within a few
months, when these stocks lost considerable value, the Fund successfully bought
back shares of selected companies and started to re-build long positions.
One major disappointment in the past six months was the dramatic rebound in tech
stocks. Our short positions in companies with weak and deteriorating earnings
experienced the greatest return, outperforming our long positions considerably.
The Lindner Market Neutral Fund will continue to maintain its focus on achieving
positive returns via a combination of long and short strategies.
/s/ Sean Fitzgibbon /s/ David Cameron
Sean Fitzgibbon, CFA David Cameron, CFA
Portfolio Manager Portfolio Manager, Chief Equity Officer
The Boston Company Asset Management The Boston Company Asset Management
Investment performance reflects voluntary fee waivers in effect. In the absence
of such waivers, total return would be reduced. Investment in the Lindner Market
Neutral Fund is different than an investment in a 3-month Treasury bill.
Treasury Bills are backed by the full faith and credit of the U.S. Government
and have a fixed rate of return. Fund holdings and/or sector allocations are
subject to change at any time.
Although a fund's potential gain is limited to the amount of which it sold a
security short, its potential loss is limited only by the maximum attainable
price of the security less the price at which the security was sold short. The
portfolio manager will apply investment techniques and risk analyses in making
investment decisions, but there can be no guarantee that these will produce the
desired results. Please refer to the prospectus for further details on risks
associated with investing in the Fund.
Lindner Investments
Schedule of Investments - June 30, 2003
Number of Shares
-
Principal Amount
Name of Issuer and Title of Issue of Bonds Value
- --------------------------------------------------------------------------------
Lindner Market Neutral Fund
Common Stocks (93.02%)
Chemicals (0.96%)
BASF AG - ADR 1,750 $ 74,585
-----------
Commercial Services (2.66%)
First Data Corporation 1,150 47,656
Tribune Company 1,600 77,280
Viacom Inc.* 1,900 82,954
-----------
207,890
-----------
Communication Services (2.79%)
COX Communications, Inc.* 3,100 98,890
Verizon Communications Inc. 1,000 39,450
Vodafone Group Plc - ADR 4,050 79,583
-----------
217,923
-----------
Communications (2.19%)
ADTRAN, Inc.* 800 41,032
Juniper Networks, Inc.* 3,300 40,821
NetScreen Technologies, Inc.* 1,600 36,080
UTStarcom, Inc.* 1,500 53,355
-----------
171,288
-----------
Consumer Cyclicals (8.89%)
Applebee's International, Inc. 1,800 56,574
Brinker International, Inc.* 1,400 50,428
Electronic Arts Inc.* 1,250 92,487
Lowe's Companies, Inc. 850 36,508
Nordstrom, Inc. 2,950 57,584
Ruby Tuesday, Inc. 1,700 42,041
Staples, Inc.* 4,200 77,070
Steven Madden, Ltd.* 3,550 77,532
The Children's Place Retail Stores, 3,100 61,566
Inc.*
The Gap, Inc. 5,200 97,552
The Yankee Candle Company, Inc.* 1,900 44,118
-----------
693,460
-----------
Consumer Staples (9.88%)
Coca-Cola Enterprises Inc. 1,850 33,577
CVS Corporation 3,600 100,908
Dean Foods Company* 1,950 61,425
Delta and Pine Land Company 2,300 50,554
Duane Reade Inc.* 5,400 79,650
Energizer Holdings, Inc.* 2,050 64,370
Fortune Brands, Inc. 1,750 91,350
General Mills, Inc. 1,200 56,892
Imperial Tobacco Group plc - ADR 1,100 39,831
Kellogg Company 2,250 77,333
Sensient Technologies Corporation 1,850 42,531
Tesco plc - ADR 3,300 35,818
The Dial Corporation 1,900 36,955
-----------
771,194
-----------
Drugs & Devices (12.38%)
Altana AG - ADR 550 34,100
Amgen Inc.* 1,550 102,982
Beckman Coulter, Inc. 2,250 91,440
Bio-Rad Laboratories, Inc.* 1,300 71,955
Boston Scientific Corporation* 950 58,045
Invitrogen Corporation* 1,900 72,903
Pfizer Inc. 3,480 118,842
Sanofi-Synthelabo S.A. - ADR 1,500 43,725
See Notes to Financial Statements
Number of
Shares -
Principal Amount
Name of Issuer and Title of Issue of Bonds Value
SICOR Inc.* 3,500 $ 71,190
St. Jude Medical, Inc.* 800 46,000
STERIS Corporation* 4,650 107,369
Varian Medical Systems, Inc.* 1,300 74,841
Watson Pharmaceuticals, Inc.* 1,800 72,666
-----------
966,058
-----------
Early Cyclicals (5.49%)
BorgWarner, Inc. 1,300 83,720
British Airways Plc* - ADR 2,550 65,280
Harman International Industries, 600 47,484
Incorporated
Johnson Controls, Inc. 550 47,080
NISSAN MOTOR CO., LTD - ADR 4,050 76,748
The Black & Decker Corporation 950 41,277
Whirlpool Corporation 1,050 66,885
-----------
428,474
-----------
Energy (6.52%)
Anadarko Petroleum Corporation 1,200 53,364
BP PLC - ADR 1,700 71,434
Chesapeake Energy Corporation 4,950 49,995
ConocoPhillips 1,150 63,020
Halliburton Company 1,600 36,800
Pogo Producing Company 1,150 49,162
Transocean Inc.* 2,700 59,319
Universal Compression Holdings, Inc.* 1,800 37,548
Valero Energy Corporation 1,350 49,046
Varco International, Inc.* 2,000 39,200
-----------
508,888
-----------
Financial Services (12.27%)
Ambac Financial Group, Inc. 850 56,313
Anglo Irish Bank Corporation plc - 350 30,725
ADR
Bank of America Corporation 950 75,079
Banknorth Group, Inc. 2,850 72,732
Citigroup Inc. 1,000 42,800
HBOS plc - ADR 1,400 54,370
Investors Financial Services Corp. 2,600 75,426
Knight Trading Group, Inc.* 7,200 44,784
Morgan Stanley 900 38,475
New York Community Bancorp, Inc. 2,866 83,372
Prudential Financial, Inc. 1,900 63,935
The Goldman Sachs Group, Inc. 700 58,625
U.S. Bancorp 2,550 62,475
Wachovia Corporation 1,850 73,926
Washington Mutual, Inc. 1,300 53,690
Wells Fargo & Company 1,400 70,560
-----------
957,287
-----------
Forest Products (0.65%)
Louisiana-Pacific Corporation* 4,700 50,948
Health Care Services (6.10%)
AdvancePCS* 1,750 66,903
AmerisourceBergen Corporation 900 62,415
Coventry Health Care, Inc.* 1,450 66,932
Fisher Scientific International, 3,250 113,425
Inc.*
Omnicare, Inc. 1,650 55,753
Triad Hospitals, Inc.* 1,400 34,748
WellPoint Health Networks Inc.* 900 75,870
-----------
476,046
-----------
Independent Exploration (0.15%)
Uranium Resources, Inc.* 383,341 11,500
-----------
Lindner Investments
Schedule of Investments - June 30, 2003
Number of
Shares -
Principal Amount
Name of Issuer and Title of Issue of Bonds Value
- --------------------------------------------------------------------------------
Lindner Market Neutral Fund
Industrial Machinery (7.98%)
Chicago Bridge & Iron Company N.V. 2,000 $ 45,360
Danaher Corporation 1,100 74,855
Deere & Company 1,550 70,835
Eaton Corporation 1,200 94,332
Ingersoll-Rand CompanyF 1,800 85,176
L-3 Communications Holdings, Inc.* 1,350 58,712
Northrop Grumman Corporation 650 56,088
PACCAR Inc. 1,350 91,206
United Technologies Corporation 650 46,039
-----------
622,603
-----------
Industrial Services (1.65%)
Burlington Northern Santa Fe 1,300 36,972
Corporation
FedEx Corp. 600 37,218
Republic Services, Inc.* 2,400 54,408
-----------
128,598
-----------
IT Services (0.64%)
ManTech International Corporation* 2,600 49,868
-----------
Miscellaneous Utilities (0.95%)
E. ON AG - ADR 1,450 74,313
-----------
Property & Casualty (0.81%)
Old Republic International Corporation 1,850 63,399
-----------
REITS (6.25%)
Boston Properties, Inc. 1,250 54,750
CarrAmerica Realty Corporation 2,200 61,182
CBL & Associates Properties, Inc. 1,200 51,600
General Growth Properties, Inc. 900 56,196
Kilroy Realty Corporation 2,000 55,000
Liberty Property Trust 1,650 57,090
Parkway Properties, Inc. 900 37,845
The Macerich Company 1,500 52,695
Vornado Realty Trust 1,400 61,040
-----------
487,398
-----------
Software (1.13%)
SAP AG - ADR 1,750 51,135
Synopsys , Inc.* 600 37,110
-----------
88,245
-----------
Specialty Technology (0.64%)
CANNON INC. - ADR 1,100 50,215
-----------
Systems (2.04%)
Hewlett-Packard Company 3,300 70,290
International Business
Machines Corporation (IBM) 450 37,125
McDATA Corporation* 3,500 51,345
-----------
158,760
-----------
Total Common Stocks
(Cost $7,522,496) 7,258,940
-----------
Short-Term Investments (7.33%)
Lindner Government Money
Market Funda 571,652 571,652
-----------
Total Short-Term Investments
(Cost $571,652) 571,652
-----------
See Notes to Financial Statements
Number of
Shares -
Principal
Amount
Name of Issuer and Title of Issue of Bonds Value
- --------------------------------------------------------------------------------
Total Investments (100.35%)
(Cost $8,094,148) $ 7,830,592
-----------
Cash Deposits with Broker for
Securities
Sold Short (2.90%) 226,430
-----------
Receivable from Brokers for Securities
Sold Short (88.48%) 6,904,636
-----------
Securities Sold Short (-92.22%) (7,196,195)
-----------
Excess of Other Assets over Liabilities (0.49%) 38,210
-----------
Net Assets (100.00%) 7,803,673
-----------
Schedule of Securities Sold Short
Abbott Laboratories (2,200) (96,272)
Affymetrix, Inc. (3,600) (70,956)
Allergan, Inc. (1,200) (92,520)
Allied Irish Banks plc - ADR (1,200) (35,892)
Ashland Inc. (1,500) (46,020)
ASML Holding N.V.F (5,650) (54,014)
Aventis S.A. - ADR (850) (46,495)
Baker Hughes Incorporated (1,300) (43,641)
Banc One Corporation (2,350) (87,373)
BB&T Corporation (2,500) (85,750)
BEA Systems, Inc. (5,300) (57,558)
Big 5 Sporting Goods Corporation (2,600) (32,578)
BOC Group plc - ADR (2,800) (73,472)
Boyd Gaming Corporation (3,850) (66,451)
BRE Properties, Inc. (1,800) (59,760)
Brooks Automation, Inc. (3,600) (40,824)
Brown-Forman Corporation (1,550) (121,861)
Burlington Resources Inc. (1,050) (56,774)
Canadian National Railway CompanyF (700) (33,782)
Cardinal Health, Inc. (1,300) (83,590)
Cephalon, Inc. (1,750) (72,030)
Charles River Laboratories International, (2,200) (70,796)
Inc.
Check Point Software Technologies Ltd. F (1,100) (21,505)
CIENA Corporation (14,150) (73,439)
Cincinnati Financial Corporation (1,650) (61,198)
Cintas Corporation (1,650) (58,476)
Clear Channel Communications, Inc. (1,800) (76,302)
Commerce Bancshares, Inc. (1,200) (46,740)
Commercial Net Lease Realty (2,250) (38,790)
Cousins Properties, Inc. (2,200) (61,380)
Cummins Inc. (1,100) (39,479)
Diageo plc - ADR (900) (39,384)
Diagnostic Products Corporation (2,700) (110,835)
Dover Corporation (3,000) (89,880)
Dow Jones & Company, Inc. (2,450) (105,423)
Eaton Vance Corp. (1,400) (44,240)
Emerson Electric Co. (1,350) (68,985)
ENI S.p.A. - ADR (900) (68,436)
Essex Property Trust, Inc. (1,000) (57,250)
Fastenal Company (1,300) (44,122)
Fiat S.p.A. - ADR (4,800) (34,464)
Fifth Third Bancorp (1,350) (77,409)
Flagstar Bancorp, Inc. (3,400) (83,130)
Galyan's Trading Company (5,000) (71,700)
Genuine Parts Company (1,700) (54,417)
Genzyme Corporation (2,050) (85,690)
Goodrich Corporation (3,300) (69,300)
H.J. Heinz Company (2,500) (82,450)
Lindner Investments
Schedule of Investments - June 30, 2003
Number of
Shares -
Principal Amount
Name of Issuer and Title of Issue of Bonds Value
- --------------------------------------------------------------------------------
Lindner Market Neutral Fund
Schedule of Securities Sold Short (Continued)
Helmerich & Payne, Inc. (1,500) $ (43,800)
Hitachi, LTD. - ADR (1,000) (42,300)
HON INDUSTRIES Inc. (1,900) (57,950)
Honeywell International Inc. (2,800) (75,180)
Hormel Foods Corporation (3,950) (93,615)
IMS Health Incorporated (5,050) (90,850)
Invacare Corporation (2,300) (75,900)
IVAX Corporation (2,100) (37,485)
J. Jill Group Inc. (3,200) (53,888)
KeyCorp (1,650) (41,695)
Kohl's Corporation (1,000) (51,380)
Lincare Holdings Inc. (2,400) (75,624)
Lincoln National Corporation (1,200) (42,756)
Lloyds TSB Group plc - ADR (1,200) (34,812)
Manor Care, Inc. (5,250) (131,303)
Manufactured Home Communities, Inc. (1,100) (38,621)
Matsushita Electric Industrial
Co., Ltd. - ADR (4,300) (43,215)
McCormick & Company, Incorporated (2,200) (59,840)
Media General, Inc. (700) (40,040)
Medicis Pharmaceutical Corporation (1,400) (79,380)
Minnesota Mining & Manufacturing
Company (3M) (600) (77,388)
Nasdaq - 100 Index Trading Stock (3,600) (107,820)
Nautica Enterprises, Inc. (2,700) (34,641)
Nestle S.A. - ADR (700) (36,110)
New Century Financial Corporation (1,700) (74,205)
Noble Energy, Inc. (1,300) (49,140)
Ohio Casualty Corporation (3,000) (39,540)
Panera Bread Company (1,700) (68,000)
Parker-Hannifin Corporation (2,350) (98,677)
Performance Food Group Company (2,100) (77,700)
Pharmaceutical Product
Development, Inc. (3,200) (91,936)
Pioneer Natural Resources Company (1,700) (44,370)
Post Properties, Inc. (1,900) (50,350)
Powell Industries, Inc. (2,550) (37,332)
ProLogis Trust (1,400) (38,220)
RadioShack Corporation (3,900) (102,609)
Rayonier Inc. (1,050) (34,650)
Realty Income Corporation (1,900) (72,352)
Roche Holding AG - ADR (550) (43,142)
RWE AG - ADR (2,600) (78,523)
Ryanair Holdings plc - ADR (1,800) (80,820)
Saks Incorporated (4,100) (39,770)
Schering-Plough Corporation (3,800) (70,680)
Smith International, Inc. (1,300) (47,762)
Snap-on Incorporated (2,550) (74,027)
SPDR Trust Series 1 (350) (34,171)
Summit Properties Inc. (2,500) (51,625)
Sun Microsystems, Inc. (24,400) (112,240)
Sunoco, Inc. (1,450) (54,723)
Swisscom AG - ADR (2,500) (70,850)
Teekay Shipping CorporationF (1,000) (42,900)
The Boeing Company (1,700) (58,344)
The Charles Schwab Corporation (6,350) (64,072)
The Cheesecake Factory Incorporated (1,750) (62,807)
The Clorox Company (1,900) (81,035)
The Coca-Cola Company (1,500) (69,615)
See Notes to Financial Statements
Number of
Shares -
Principal Amount
Name of Issuer and Title of Issue of Bonds Value
- --------------------------------------------------------------------------------
Schedule of Securities Sold Short (Continued)
The Commerce Group, Inc. (1,750) $ (63,350)
The Gillette Company (3,200) (101,952)
The Reynolds & Reynolds Company (1,100) (31,416)
The ServiceMaster Company (3,500) (37,450)
The Stanley Works (2,900) (80,040)
The Talbots, Inc. (1,500) (44,175)
Valley National Bancorp (2,760) (72,726)
Walgreen Co. (3,700) (111,370)
Waste Management, Inc. (1,950) (46,976)
Webster Financial Corporation (850) (32,130)
-----------
(7,196,195)
===========
* Non-income producing.
a Denotes security is affiliated. (See Note 4)
F Foreign Security.
ADR - American Depository Receipt.
All financial assets are held as eligible collateral for short positions
Lindner Government Money Market Fund
Performance Summary
With the primary objective of providing current income consistent with the
preservation of capital and liquidity, Lindner Government Money Market Fund
returned 0.46% in the first half of calendar 2003. For the fiscal year ended
June 30, 2003, the Fund returned 1.15%. In both periods, we believe we succeeded
in achieving our objective of obtaining consistent and competitive returns, even
as interest rates dropped to their lowest level since 1958.
During the year ended June 30, 2003, the Federal Reserve cut the Fed funds rate
by 75-basis points, with the latest 25-basis point cut lowering this benchmark
to 1.00%. As interest rates declined, the short-term yield curve flattened,
making it increasingly more difficult to add value to the portfolio. We
continued our strategy of purchasing longer-term, odd-lot securities. As the
latest interest rate cut became priced into the yield curve toward the end of
the second quarter, we also took advantage of the overnight rate premium.
The most recent rate cut caused the yield curve to become steeper, and brought
some normalcy to its shape. In response to the widening spread between long and
short rates, we maintained a barbell strategy for our portfolio - with exposure
heaviest around the shortest and longest end of our maturity range (up to 397
days). We found the most value in 11- to 13-month maturities, and avoided the 4
to 8 month mid-range, where there appeared to be no special yield advantage.
As of June 30, our Fund held 31% in floating rate securities obtained at a
discount to add value to the portfolio. Seizing the opportunity that arose
during the recent Freddie Mac crisis, when negative headlines caused the yield
on the government agency's securities to rise, we added to our position at
attractive rates.
Our only disappointment has been the lackluster economic growth that has kept
interest rates at historically low levels.
Lindner Government Money Market Fund continues to look for opportunities to
achieve competitive returns.
/s/Jeffrey Plotnik
Jeffrey Plotnik
Vice President & Portfolio Manager U.S.
Bancorp Asset Management, Inc.
The Lindner Government Money Market Fund had average annual total returns of
3.73% and 4.14% for the 5 year and since inception (7/2/96) periods.
Past performance is not predictive of future performance. Investment return and
principal will fluctuate so that an investors shares, when redeemed, may be
worth more or less than their original cost. Investment performance reflects
voluntary fee waivers in effect. In the absence of such waivers, total return
would be reduced.
An investment in the Fund is neither insured nor guaranteed by the Federal
Deposit Insurance Corporation (FDIC) or any other governmental agency. Although
the Fund seeks to preserve the value of your investment at $1.00 per share, it
is possible to lose money by investing in the Fund.
Lindner Investments
Schedule of Investments - June 30, 2003
Number of Shares -
Principal Amount
Name of Issuer and Title of Issue of Bonds Value
- --------------------------------------------------------------------------------
Lindner Government Money Market Fund
U.S. Government Agency Securities (74.70%)
FAMCDN
FAMCDN, 1.200%, 8/13/2003 $ 275,000 $ 274,606
FFCB
FFCB, 4.250%, 7/01/2003 330,000 330,000
FFCB, 5.090%, 12/08/2003 250,000 254,028
FFCB, 1.199%, 5/05/2004 4,000,000 3,997,968
FHLB
FHLB, 1.625%, 8/12/2003 350,000 349,910
FHLB, 5.575%, 9/02/2003 200,000 201,248
FHLB, 3.125%, 11/14/2003 150,000 150,667
FHLB, 5.250%, 11/24/2003 750,000 761,734
FHLB, 5.280%, 1/06/2004 250,000 254,970
FHLB, 6.875%, 2/13/2004 220,000 227,489
FHLB, 4.875%, 4/16/2004 350,000 359,908
FHLBDN, 0.890%, 7/11/2003 1,092,000 1,091,706
FHLMC
FHLMC, 5.990%, 12/01/2003 260,000 264,717
FHLMCDN, 0.910%, 8/11/2003 711,000 710,263
FNMA
FNMA, 0.910%, 8/13/2003 710,000 709,228
FNMA, 1.650%, 12/15/2003 342,000 339,422
FNMA, 5.450%, 2/05/2004 300,000 307,275
FNMA, 6.850%, 4/05/2004 205,000 213,604
FNMA, 5.625%, 5/14/2004 526,000 546,062
FNMA, 1.000%, 10/07/2004 2,000,000 1,999,237
FNMADN, 0.950%, 7/11/2003 600,000 600,000
-----------
Total U.S. Government Agency Securities
(Cost $13,944,042) 13,944,042
-----------
Number of
Shares -
Principal Amount
Name of Issuer and Title of Issue of Bonds Value
- --------------------------------------------------------------------------------
Temporary Cash Investments (26.51%)
Investment Companies (7.22%)
AIM STIC Government Obligations $ 678,958 $ 678,958
Goldman Sachs Financial Square
Government Fund 668,363 668,363
-----------
Total Investment Companies
(Cost $1,347,321) 1,347,321
-----------
Repurchase Agreements (19.29%)
Lehman Brothers, 1.150%,
dated 6/30/2003, matures 7/01/2003,
repurchase price $3,600,115
(collateralized by FNMA,
6.625%: total market
value $3,672,000) 3,600,000 3,600,000
-----------
Total Repurchase Agreements
(Cost $3,600,000) 3,600,000
-----------
Total Temporary Cash Investments
(Cost $4,947,321) 4,947,321
-----------
Total Investments (101.21%)
(Cost $18,891,363)* 18,891,363
Excess of Liabilities over Other Assets (-1.21%) (225,682)
-----------
Net Assets (100.00%) $18,665,681
-----------
* Represents cost for federal income tax purposes.
FAMCDN = Federal Agricultural Mortgage Corporation Discount Note
FFCB = Federal Farm Credit Bureau
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
See Notes to Financial Statements
Lindner Investments
Statements of Assets and Liabilities
June 30, 2003
Lindner
Lindner Lindner Lindner Lindner Lindner Government
Large-Cap Growth and Communications Small-Cap Market Neutral Money Market
Growth Fund Income Fund Fund Growth Fund Fund Fund
- ----------------------------------------------------------------------------------------------------------------------
Assets:
Investment in securities at
fair value $90,799,928 $ 177,877,922 $ 8,432,685 $ 7,356,146 $ 7,830,592 $18,891,363
Cash -- -- 265 -- 63 --
Receivable from Adviser -- -- 1,924 -- -- 503
Receivable for securities sold 1,486,006 -- 141,713 116,283 -- --
Receivable for capital shares sold 208 3,200 1,000 -- 60,000 --
Receivable from broker for
proceeds on
securities sold short -- -- -- -- 6,904,636 --
Cash deposits with broker for
securities
sold short -- -- -- -- 226,430 --
Receivable for dividends and
interest 44,560 402,859 11,488 559 11,393 58,959
Prepaid expenses and
other assets 31,209 47,440 6,634 7,038 7,483 12,310
----------- ----------- --------- --------- ---------- ----------
Total assets 92,361,911 178,331,421 8,595,709 7,480,026 15,040,597 18,963,135
----------- ----------- --------- --------- ---------- ----------
Liabilities
Securities sold short,
at fair value -- -- -- -- 7,196,195 --
Payable for securities purchased -- -- 193,811 -- -- --
Payable for capital shares
redeemed 97,937 365,856 -- -- 7,030 268,566
Payable to Adviser 58,359 116,914 -- 3,184 2,447 --
Accrued distribution fee 7,770 23,570 4,420 3,790 5,660 --
Dividends payable to shareholders -- -- -- -- -- 3,144
Dividends payable on short
positions -- -- -- -- 10,717 --
Accrued expenses and other
liabilities 117,563 188,855 18,174 12,996 14,875 25,744
----------- ----------- --------- --------- ---------- ----------
Total liabilities 281,629 695,195 216,405 19,970 7,236,924 297,454
----------- ----------- --------- --------- ---------- ----------
Net Assets $92,080,282 $ 177,636,226 $ 8,379,304 $ 7,460,056 $ 7,803,673 $18,665,681
=========== =========== ========= ========= ========== ==========
Net assets consist of:
Capital (par value, $0.01, $0.01,
$0.01, $0.01,
$0.01 and $1.00 per share and
additional
paid-in capital, respectively) $206,650,646 $ 352,478,583 $25,139,956 $10,533,228 $ 32,959,028 $18,665,681
Accumulated net realized (loss)
on investments
and foreign currency transactions(120,454,085) (165,947,829) (15,953,552) (4,620,058) (24,600,240) --
Net unrealized appreciation
(depreciation) on
investments 5,883,721 (8,894,528) (807,100) 1,546,886 (555,115) --
----------- ----------- --------- --------- ---------- -----------
Total Net Assets $92,080,282 $ 177,636,226 $ 8,379,304 $ 7,460,056 $ 7,803,673 $18,665,681
=========== =========== ========= ========= ========== ===========
Shares of beneficial interest
outstanding 13,178,433 10,009,991 1,284,691 1,438,368 1,287,523 18,665,681
Net Asset Value, Offering Price
and Redemption
Price Per Share $ 6.99 $ 17.75 $ 6.52 $ 5.19 $ 6.06 $ 1.00
=========== =========== ========= ========= ========== ===========
Investment in securities at cost: $84,916,207 $ 186,772,450 $ 9,239,795 $ 5,809,260 $ 8,094,148 $18,891,363
Proceeds from securities sold short: $ -- $ -- $ -- $ -- $ 6,904,636 $ --
See Notes to Financial Statements
Lindner Investments
Statements of Operations For the
Year Ended June 30, 2003
Lindner Lindner
Lindner Lindner Lindner Lindner Market Government
Large-Cap Growth and Communications Small-Cap Neutral Money Market
Growth Fund Income Fund Fund Growth Fund Fund Fund
- -------------------------------------------------------------------------------------------------------------------
Investment Income
Income:
Dividends* $ 718,469 $ 2,601,325 $ 97,301 $ 6,256 $ 121,859 $ --
Interest 20,230 1,221,030 2,762 1,930 129,266 359,003
----------- ----------- -------- ---------- -------- -----------
Total income 738,699 3,822,355 100,063 8,186 251,125 359,003
----------- ----------- -------- ---------- -------- -----------
Expenses: (Note 3)
Management fees 740,224 1,243,874 75,166 69,234 81,505 32,226
Transfer agent fees 266,029 364,832 32,519 24,206 20,273 40,654
Legal fees 60,174 118,042 4,543 4,677 4,778 15,120
Audit fees 32,556 72,180 2,420 2,362 2,921 7,005
Administration fees 92,528 177,696 7,547 7,288 8,151 21,484
Report printing 39,475 55,123 3,080 3,586 1,640 2,020
Insurance expense 35,767 63,635 3,407 3,056 2,799 7,915
Fund accounting fees 41,791 55,020 30,569 22,859 31,491 40,028
12b-1 fees 37,649 76,488 17,959 17,796 19,979 --
Custodian fees 12,767 25,400 10,856 924 2,125 3,304
Trustee fees 26,893 53,519 2,493 1,702 2,507 5,902
Registration and regulatory fees 14,813 18,498 13,971 12,722 13,185 16,578
Dividend expense on short -- -- -- -- 142,949 --
positions**
Other expenses 728 903 242 -- 244 243
----------- ----------- -------- ---------- -------- -----------
Total expenses 1,401,394 2,325,210 204,772 170,412 334,547 192,479
Expenses waived by advisor (Note 3) (152,267) (104,006) (87,800) (61,095) (13,916) (85,059)
----------- ----------- -------- ---------- -------- -----------
Net expenses 1,249,127 2,221,204 116,972 109,317 320,631 107,420
----------- ----------- -------- ---------- -------- -----------
Net investment income (loss) (510,428) 1,601,151 (16,909) (101,131) (69,506) 251,583
----------- ----------- -------- ---------- -------- -----------
REALIZED AND UNREALIZED
GAIN (LOSS) FROM INVESTMENTS:
Net realized gain (loss) on:
Investments (27,520,431) (31,679,518) (849,549) (1,547,209) (927,600) --
Short sale transactions -- -- -- -- 592,137 --
----------- ----------- -------- ---------- -------- -----------
Net realized loss (27,520,431) (31,679,518) (849,549) (1,547,209) (335,463) --
----------- ----------- -------- ---------- -------- -----------
Change in unrealized appreciation
or depreciation on:
Investments 23,019,264 27,693,067 2,769,094 585,136 858,101 --
Short positions -- -- -- -- (224,276) --
----------- ----------- -------- ---------- -------- -----------
Net change in unrealized
appreciation or
depreciation 23,019,264 27,693,067 2,769,094 585,136 633,825 --
----------- ----------- -------- ---------- -------- -----------
Net realized and unrealized gain
(loss) on
investments (4,501,167) (3,986,451) 1,919,545 (962,073) 298,362 --
----------- ----------- -------- ---------- -------- -----------
Net Increase (Decrease) in Net
Assets Resulting
from Operations $(5,011,595) $(2,385,300) $1,902,636 $(1,063,204) $ 228,856 $251,583
* Net of withholding taxes of: $ -- $ 10,782 $ 7,210 $ -- $ 2,592 $ --
**Net of withholding taxes of: $ -- $ -- $ -- $ -- $ 1,755 $ --
See Notes to Financial Statements
Lindner Investments
Statements of Changes in Net Assets
Lindner Lindner Lindner
Large-Cap Growth Fund Growth and Income Fund Communications Fund
--------------------- ---------------------- -------------------
For the Year Ended For the Year Ended For the Year Ended
--------------------- ---------------------- -------------------
June 30, June 30, June 30, June 30, June 30, June 30,
2003 2002 2003 2002 2003 2002
---- ---- ---- ---- ---- ----
Increase (Decrease) in Net Assets:
Operations:
Net investment income (loss) $ (510,428) $(1,225,231) $ 1,601,151 $ 3,192,490 $ (16,909) $ 44,249
Net realized loss on investments (27,520,431) (56,436,814) (31,679,518) (13,961,089) (849,549) (3,523,118)
Net change in unrealized
appreciation
or depreciation on investments 23,019,264 (7,919,979) 27,693,067 (27,963,303) 2,769,094 (4,991,267)
----------- ----------- ----------- ----------- --------- ----------
Net increase (decrease) in
net assets from operations (5,011,595) (65,582,024) (2,385,300) (38,731,902) 1,902,636 (8,470,136)
----------- ----------- ----------- ----------- --------- ----------
Distributions to Shareholders:
From net investment income -- -- (1,602,731) (3,225,451) -- (40,825)
From return of capital -- -- (51,250) -- -- (20,741)
----------- ----------- ----------- ----------- --------- ----------
Net decrease in net assets from
distributions to shareholders -- -- (1,653,981) (3,225,451) -- (61,566)
----------- ----------- ----------- ----------- --------- ----------
Net Fund Share Transactions (Note 6):
Investor shares (15,251,181) (34,698,786) (29,408,001) (62,555,113) (1,217,579) (4,999,652)
Institutional shares -- (121,246) -- (222,971) -- (32,798)
----------- ----------- ----------- ----------- --------- ----------
Net Decrease from Fund
Share Transactions (15,251,181) (34,820,032) (29,408,001) (62,778,084) (1,217,579) (5,032,450)
----------- ----------- ----------- ----------- --------- ----------
Total Increase (Decrease) in Net (20,262,776)(100,402,056) (33,447,282) (104,735,437) 685,057 (13,564,152)
Assets
Net Assets at the Beginning of the
Year 112,343,058 212,745,114 211,083,508 315,818,945 7,694,247 21,258,399
----------- ----------- ----------- ----------- --------- ----------
Net Assets at the End of the Year
(including accumulated undistributed net
investment income of $0 and $0 for each of the
funds, respectively) $ 92,080,282 $112,343,058 $ 177,636,226 $ 211,083,508 $ 8,379,304 7,694,247
============ ============ ============== ============= ============== ===========
See Notes to Financial Statements
Lindner Investments
Statements of Changes in Net Assets
Lindner Lindner Lindner Government
Small-Cap Growth Fund Market Neutral Fund Money Market Fund
--------------------- ------------------- -----------------
For the Year Ended For the Year Ended For the Year Ended
--------------------- ---------------------- -------------------
June 30, June 30, June 30, June 30, June 30, June 30,
2003 2002 2003 2002 2003 2002
---- ---- ---- ---- ---- ----
Increase (Decrease) in Net Assets:
Operations:
Net investment income (loss) $ (101,131) $ (190,201) $ (69,506) $ (155,170) $ 251,583 $ 823,103
Net realized loss on investments (1,547,209) (2,604,103) (335,463) (1,097,077) -- --
Net change in unrealized
appreciation
or depreciation on investments 585,136 (2,240,518) 633,825 408,904 -- --
---------- ---------- -------- ---------- ----------- ----------
Net increase (decrease) in net
assets
from operations (1,063,204) (5,034,822) 228,856 (843,343) 251,583 823,103
---------- ---------- -------- ---------- ----------- ----------
Distributions to Shareholders:
From net investment income -- -- -- (359,101) (251,583) (823,103)
From return of capital -- -- -- -- -- --
Net decrease in net assets from
distributions to shareholders -- -- -- (359,101) (251,583) (823,103)
Net Fund Share Transactions (Note 6):
Investor shares (1,435,253) (5,320,122) (565,941) (5,801,962) (13,421,683) (8,034,967)
Institutional shares -- (754,546) -- -- -- --
---------- ---------- -------- ---------- ----------- ----------
Net Decrease from Fund
Share Transactions (1,435,253) (6,074,668) (565,941) (5,801,962) (13,421,683) (8,034,967)
---------- ---------- -------- ---------- ----------- ----------
Total Increase (Decrease) in Net (2,498,457) (11,109,490) (337,085) (7,004,406) (13,421,683) (8,034,967)
Assets
Net Assets at the Beginning of the
Year 9,958,513 21,068,003 8,140,758 15,145,164 32,087,364 40,122,331
---------- ---------- -------- ---------- ----------- ----------
Net Assets at the End of the Year
(including accumulated undistributed
net investment income of $0 and $0
for each of the
funds, respectively) $ 7,460,056 $ 9,958,513 $7,803,673 $ 8,140,758 $18,665,681 $32,087,364
============= ============= ========== =========== =========== ===========
See Notes to Financial Statements
Lindner Investments
NOTES TO FINANCIAL STATEMENTS
1. Organization and Significant Accounting Policies
Lindner Investments, a Massachusetts business trust (the "Trust"), is
registered under the Investment Company Act of 1940, as amended, as an
open-end management investment company. Six series are currently issued by
the Trust: (1) Lindner Large-Cap Growth Fund, (2) Lindner Growth and Income
Fund, (3) Lindner Communications Fund, (4) Lindner Small-Cap Growth Fund,
(5) Lindner Market Neutral Fund, and (6) Lindner Government Money Market
Fund (collectively, the "Lindner Funds" or the "Funds").
The following is a summary of significant accounting policies of the Funds.
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.
Security Valuation
The Lindner Large-Cap Growth, Lindner Growth and Income, Lindner
Communications, Lindner Small-Cap Growth, and Lindner Market Neutral
Funds value investments in securities traded on a national securities
exchange at the last reported sales price as of the close of the New
York Stock Exchange. Securities that are principally traded on the
National Association of Securities Dealers Automated Quotation
("NASDAQ") National Market are generally valued at the NASDAQ Official
Closing Price ("NOCP"). 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 Board of Trustees.
Investments held by 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, which approximates market value, 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 Funds record 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 and the difference between the
amounts of dividends, interest, and foreign withholding taxes recorded
on the Funds' books compared to 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. Net unrealized foreign currency gains and losses arising
from investment transactions are included in the change in unrealized
appreciation or depreciation on investments.
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.
Due to inherent differences in the recognition of income, expenses and
realized gain/losses under accounting principles generally accepted in
the United States of America and federal income tax purposes,
permanent differences between book and tax basis reporting have been
identified and appropriately reclassified in the Statements of Assets
and Liabilities.
Lindner Investments
1. Organization and Significant Accounting Policies (continued)
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.
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"). As of June 30, 2003, the Lindner Market Neutral Fund was
the only Fund which held short positions of securities.
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 Growth, Lindner Market
Neutral, Lindner Small-Cap Growth, and Lindner Communications Funds
declare annual dividends from net investment income in December. The
Lindner Growth and Income Fund distributes substantially all of its
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.
2. Investment Transactions and Federal Tax Disclosure
For the year ended June 30, 2003, aggregate purchases and sales of
investment securities, other than options, U.S. Government Securities, and
short-term obligations were as follows:
Purchases Sales
--------- -----
Lindner Large-Cap Growth Fund $109,160,073 $126,326,008
Lindner Growth and Income Fund 56,092,929 66,071,455
Lindner Communications Fund 874,456 2,243,869
Lindner Small-Cap Growth Fund 7,678,115 9,190,387
Lindner Market Neutral Fund 27,292,346 27,578,782
For the year ended June 30, 2003, aggregate purchases and sales of long-term
U.S. Government securities were as follows:
Purchases Sales
--------- -----
Lindner Large-Cap Growth Fund $ 0 $ 0
Lindner Growth and Income Fund 1,885,674 18,312,236
Lindner Communications Fund 0 0
Lindner Small-Cap Growth Fund 0 0
Lindner Market Neutral Fund 0 0
Lindner Investments
As of June 30, 2003, the components of accumulated earnings/(losses) on a tax
basis were as follows:
Lindner Lindner Lindner Lindner Lindner
Large-Cap Growth and Communications Small-Cap Market Neutral
Growth Fund Income Fund Fund Growth Fund Fund
----------- ----------- -------------- ----------- -------------
Cost of Investments (a) $ 85,063,917 $ 186,824,829 $ 9,626,177 $ 5,810,601 $ 8,112,365
Gross unrealized appreciation 9,100,539 16,317,543 753,217 1,622,371 924,333
Gross unrealized depreciation (3,364,528) (25,264,450) (1,946,699) (76,826) (1,206,106)
------------ ------------ ----------- ---------- -----------
Net unrealized 5,736,011 (8,946,907) (1,193,482) 1,545,545 (281,773)
appreciation/(depreciation)
Cumulative tax cost adjustments 147,710 52,379 386,382 1,341 18,217
Distributable ordinary income -- -- -- -- --
Distributable long-term capital gain -- -- -- -- --
Total distributable earnings -- -- -- -- --
Other accumulated losses (120,454,085) (165,947,829) (15,953,552) (4,620,058) (24,891,799)
Total net losses $(114,570,364) $(174,842,357) $(16,760,652) $(3,073,172) $(25,155,355)
(a) Represents cost for federal income tax purposes and differs from the cost
for financial reporting purposes by the amount of losses recognized for the
financial reporting purposes in excess of federal income tax purposes.
The tax components of dividends paid during the years ended June 30, 2003 and
June 30, 2002 were as follows:
Lindner Lindner Lindner Lindner Lindner
Large-Cap Growth and Communications Small-Cap Market Neutral
Growth Fund Income Fund Fund Growth Fund Fund
For the For the For the For the For the
Year Ended Year Ended Year Ended Year Ended Year Ended
---------- ---------- ---------- ---------- ----------
June 30, June 30, June 30, June 30, June 30, June 30, June 30, June 30, June 30,June 30,
2003 2002 2003 2002 2003 2002 2003 2002 2003 2002
---- ---- ---- ---- ---- ---- ---- ---- ---- ----
Ordinary income
dividends $-- $-- $1,602,731 $3,225,451 $-- $40,825 $-- $-- $-- $359,101
Return of capital
distributions -- -- 51,250 -- -- 20,741 -- -- -- --
On June 30, 2003, Lindner Large-Cap Growth Fund had, available for federal
income tax purposes, capital loss carryforwards aggregating approximately
$103,744,975, which expire $5,821,089 in 2009, $63,270,724 in 2010 and
$34,653,162 in 2011.
On June 30, 2003, Lindner Growth and Income Fund had, available for federal
income tax purposes, capital loss carryforwards aggregating approximately
$149,272,522 which expire $9,748,820 in 2007, $45,757,405 in 2008, $56,382,656
in 2009, $10,010,373 in 2010 and $27,373,268 in 2011.
On June 30, 2003, Lindner Communications Fund had, available for federal income
tax purposes, capital loss carryforwards aggregating approximately $14,947,429,
which expire $478,589 in 2009, $11,763,123 in 2010 and $2,705,717 in 2011.
On June 30, 2003, Lindner Small-Cap Growth Fund had, available for federal
income tax purposes, capital loss carryforwards aggregating approximately
$4,111,614, which expire $2,756,241 in 2010 and $1,355,373 in 2011.
On June 30, 2003, Lindner Market Neutral Fund had, available for federal income
tax purposes, capital loss carryforwards aggregating approximately $24,242,752,
which expire $5,301,235 in 2004, $1,792,406 in 2005, $9,095,248 in 2006,
$5,006,556 in 2007, $610,892 in 2009, $1,465,206 in 2010 and $971,199 in 2011.
At June 30, 2003, the Lindner Large-Cap Growth Fund, Lindner Growth and Income
Fund, Lindner Communications Fund, Lindner Small-Cap Growth Fund, and Lindner
Market Neutral Fund deferred on a tax basis to the first day of the next taxable
year, post-October losses of $16,561,400, $16,622,928, $619,741, $507,103, and
$329,802, respectively.
For the year ended June 30, 2003, 100% of the ordinary distributions paid by the
Lindner Growth and Income Fund qualify for the dividend received deduction
available to corporate shareholders (unaudited).
Lindner Investments
The Lindner Growth & Income Fund designates 100% of dividends declared after
December 31, 2002 from net investment income as qualified dividend income under
the Jobs and Growth Tax Relief Reconciliation Act of 2003.
3. Management Fees and Other Transactions with Affiliates
Management fees for the Lindner Large-Cap Growth Fund are accrued daily and paid
monthly at an annual rate of 0.8% of the first $500 million of net assets, 0.75%
of the next $500 million of net assets, and 0.7% of the excess of $1 billion.
Management fees for the Lindner Growth and Income Fund are accrued daily and
paid monthly at an annual rate of 0.7% of the first $500 million of net assets,
0.65% of the next $500 million of net assets, and 0.6% of the excess of $1
billion. Management fees for the Lindner Communications Fund are accrued daily
and paid monthly at an annual rate of 1.0% of the first $500 million of net
assets, 0.9% of the next $500 million of net assets, and 0.85% of the excess of
$1 billion.
Management fees for the Lindner Small-Cap Growth Fund are accrued daily and paid
monthly at an annual rate of 0.95% of the first $500 million of net assets, 0.9%
of the next $500 million of net assets, and 0.85% of the excess of $1 billion.
Management fees for the Lindner Market Neutral Fund are accrued daily and paid
monthly at an annual rate of 1.0% of net assets.
Management fees for the Lindner Government Money Market Fund are accrued daily
and paid monthly at an annual rate 0.15% of net assets.
Lindner Asset Management, Inc., the Adviser to the Funds, supervises the
preparation and filing of all documents required for compliance by the Funds
with applicable laws and regulations, supervises the maintenance of books and
records of the Funds and provides other general and administrative services. For
providing these services, the Adviser receives compensation at an annual rate of
0.10% of the average daily net assets of each Fund.
The Adviser has contractually agreed until June 30, 2003, to waive a portion of
its management and administration fees so that a Fund's total operating expenses
do not exceed the amounts listed in the following table:
Fund Total Operating
Expenses
Large-Cap Growth Fund 1.35%
Growth and Income Fund 1.25%
Communications Fund 1.55%
Small-Cap Growth Fund 1.50%
Market Neutral Fund 2.18%
Government Money Market Fund 0.50%
For the year ended June 30, 2003, the Trust recognized expenses, net of waivers,
of $2,052,780 representing Lindner Asset Management, Inc.'s cost of providing
management and administrative services to the Trust.
The Board of Trustees, on behalf of all Funds, except the Government Money
Market Fund, has adopted and the shareholders subsequently approved in July
2001, a Distribution Plan pursuant to Rule 12b-1 under the Investment Company
Act of 1940. Pursuant to the Distribution Plan, each Fund, other than the
Government Money Market Fund, may incur certain expenses of up to 0.25% per
annum of its average daily net assets. The Distribution Plan provides that the
Funds may finance activities which are primarily intended to result in the sale
of the Fund's shares. For the year ended June 30, 2003 the Funds incurred the
following expenses pursuant to the Distribution Plan: Lindner Large-Cap Growth
Fund - $37,649, Lindner Growth and Income Fund - $76,488, Lindner Communications
Fund - $17,959, Lindner Small-Cap Growth Fund - $17,796, and Lindner Market
Neutral Fund - $19,979.
The Adviser has entered into an advisory agreement for each Fund pursuant to
which the Adviser has appointed a Sub-Adviser to carry out the day-to-day
investment and reinvestment of the assets of each Fund. The fees of the
Sub-Advisers are paid by the Adviser. The following table lists the Sub-Advisers
of each Fund as of June 30, 2003.
Lindner Investments
Fund Sub-Adviser
- ---- -----------
Large-Cap Growth Fund CastleArk Management, LLC
Growth and Income Fund Argent Capital Management LLC
Communications Fund Gamco Investors Inc. d/b/a
Gabelli Asset Management Company
Small-Cap Growth Fund CastleArk Management, LLC
Market Neutral Fund The Boston Company Asset Management
(Formerly Standish Mellon Asset
Management, LLC prior to reorganization
on July 1, 2003)
Government Money Market Fund U.S. Bancorp Asset Management, Inc.
4. Transactions with Affiliates
Issuers of whose voting stock the Funds own more than 5% but less than 25% are
classified as "affiliates (non-controlled)". During the year ended June 30,
2003, Atlas Minerals, Inc. was the only issuer that was classified as an
"affiliate (non-controlled)" and which was an "affiliated company" as defined by
the Investment Company Act of 1940.The Lindner Growth and Income Fund was the
only Fund that owned common stock of this affiliated (non-controlled) issuer.
The Fund sold its position in Atlas Minerals, Inc. and realized a loss of
$3,205,061 during the year ended June 30, 2003.
Additionally, certain of the Funds invest in the Lindner Government Money Market
Fund as a short-term investment vehicle. Accordingly, these Funds classify their
investments in the Lindner Government Money Market Fund as affiliated
transactions. Investment income received from the Lindner Government Money
Market Fund was $20,230 for the Lindner Large-Cap Growth Fund, $15,914 for the
Lindner Growth and Income Fund, $2,762 for the Lindner Communications Fund,
$1,930 for the Lindner Small-Cap Growth Fund, and $4,705 for the Lindner Market
Neutral Fund, for the year ended June 30, 2003.
5. Capital Stock
The Lindner Large-Cap Growth, Lindner Growth and Income, Lindner Communications,
Lindner Small-Cap Growth, and Lindner Market Neutral Funds have authorized
unlimited shares of $.01 par value shares. The Lindner Government Money Market
Fund has authorized unlimited shares of $1 par value shares. Effective August
17th, 2001, Institutional shares and Investor shares of each fund were combined,
and since that date, only one class of shares of each fund is offered to
investors. Transactions in shares of capital stock were as follows:
Year Ended June 30, 2003 Year Ended June 30, 2002
------------------------ ------------------------
Shares Amount Shares Amount
------ ------ ------ ------
Lindner Large-Cap Growth Fund
Investor shares
Sold 68,604 $ 447,502 2,699,633 $ 26,522,075
Dividends and distributions -- -- -- --
reinvested
Redeemed (2,419,150) (15,698,683) (6,632,547) (61,220,861)
---------- ----------- ---------- -----------
Net decrease (2,350,546) $(15,251,181) (3,932,914) $ (34,698,786)
========== ============ ========== ==============
Institutional shares
Sold -- $ -- 210 $ 2,121
Dividends and distributions -- -- -- --
reinvested
Redeemed -- -- (12,863) (123,367)
---------- ----------- ---------- -----------
Net decrease -- $ -- (12,653) $ (121,246)
========== ============ ========== ==============
Lindner Growth and Income Fund
Investor shares
Sold 159,386 $ 2,606,346 144,415 $ 2,910,793
Dividends and distributions 84,101 1,363,116 137,361 2,589,707
reinvested
Redeemed (2,034,583) (33,377,463) (3,410,163) (68,055,613)
---------- ----------- ---------- -----------
Net decrease (1,791,096) $(29,408,001) (3,128,387) $ (62,555,113)
========== ============ ========== ==============
Institutional shares
Sold -- $ -- 199 $ 4,183
Dividends and distributions -- -- -- --
reinvested
Redeemed -- -- (10,893) (227,154)
---------- ----------- ---------- -----------
Net decrease -- $ -- (10,694) $ (222,971)
========== ============ ========== ==============
Lindner Investments
Year Ended June 30, 2003 Year Ended June 30, 2002
------------------------ ------------------------
Shares Amount Shares Amount
------ ------ ------ ------
Lindner Communications Fund
Investor shares
Sold 316,943 $ 1,741,048 37,411 $ 297,063
Dividends and distributions -- -- 7,295 55,299
reinvested
Redeemed (571,299) (2,958,627) (711,779) (5,352,014)
---------- ----------- ---------- -----------
Net decrease (254,356) $ (1,217,579) (667,073) $ (4,999,652)
========== ============ ========== ==============
Institutional shares
Sold -- $ -- -- $ --
Dividends and distributions -- -- -- --
reinvested
Redeemed -- -- (3,685) (32,798)
---------- ----------- ---------- --------------
Net decrease -- $ -- (3,685) $ (32,798)
========== ============ ========== ==============
Lindner Small-Cap Growth Fund
Investor shares
Sold 34,266 $ 158,028 166,944 $ 1,132,827
Dividends and distributions -- -- -- --
reinvested
Redeemed (349,022) (1,593,281) (994,661) (6,452,949)
---------- ----------- ---------- --------------
Net decrease (314,756) $ (1,435,253) (827,717) $ (5,320,122)
========== ============ ========== ==============
Institutional shares
Sold -- $ -- 328 $ 2,354
Dividends and distributions -- -- -- --
reinvested
Redeemed -- -- (109,271) (756,900)
---------- ----------- ---------- --------------
Net decrease -- $ -- (108,943) $ (754,546)
========== ============ ========== ==============
Lindner Market Neutral Fund
Investor shares
Sold 1,267,418 $ 7,502,996 229,471 $ 1,476,729
Dividends and distributions -- -- 56,818 338,067
reinvested
Redeemed (1,365,570) (8,068,937) (1,218,028) (7,616,758)
---------- ----------- ---------- --------------
Net decrease (98,152) $ (565,941) (931,739) $ (5,801,962)
========== ============ ========== ==============
Lindner Government Money Market Fund
Investor shares
Sold 91,457,814 $ 91,457,814 195,424,952 $ 195,424,952
Dividends and distributions 165,242 165,242 464,386 464,386
reinvested
Redeemed (105,044,739) (105,044,739)(203,924,305) (203,924,305)
---------- ----------- ----------- --------------
Net decrease (13,421,683) $(13,421,683) (8,034,967) $ (8,034,967)
========== ============ =========== ==============
Lindner Investments
Financial Highlights
Lindner Large-Cap Growth Fund
(Selected data for a share outstanding throughout the indicated period)
Year Ended June 30
-------------------------------------------
2003 2002 2001 2000 1999
---- ---- ---- ---- ----
Net asset value, beginning of period $7.23 $10.92 $16.42 $16.14 $22.27
Income from investment operations
Net investment income (loss) (0.04)(2) (0.07)(2) 0.022 0.13 0.29
Net realized and unrealized gains
(losses) on investments (0.20) (3.62) (3.61) 1.25 (3.36)
----- ----- ----- ---- -----
Total from investment operations (0.24) (3.69) (3.59) 1.38 (3.07)
----- ----- ----- ---- -----
Less distributions
Dividends from net investment income -- -- (0.10) (0.23) (0.32)
Dividends from net realized gains -- -- (1.81) (0.87) (2.74)
----- ----- ----- ---- -----
Total distributions -- -- (1.91) (1.10) (3.06)
----- ----- ----- ---- -----
Change in net asset value (0.24) (3.69) (5.50) 0.28 (6.13)
----- ----- ----- ---- -----
Net asset value, end of period $6.99 $7.23 $10.92 $16.42 $16.14
===== ===== ====== ====== ======
Total return(1) (3.32%) (33.79%) (22.84%) 8.61% (13.66%)
Ratios/supplemental data:
Ratio of expenses to average net assets:
Before expense waivers 1.52% 1.33% 0.70% 0.82% 0.57%
After expense waivers 1.35% 1.33% 0.70% 0.82% 0.57%
Ratio of net investment income
(loss) to average net assets:
Before expense waivers (0.72%) (0.79%) 0.11% 0.57% 1.27%
After expense waivers (0.55%) (0.79%) 0.11% 0.57% 1.27%
Portfolio turnover rate 119.35% 135.50% 232.94% 129.68% 53.41%
Net assets, end of period (in millions) $92 $112 $213 $342 $434
(1) 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 the period.
(2) Net investment income (loss) per share represents net investment income
(loss) divided by the daily average shares of beneficial interest
outstanding throughout each period.
See Notes to Financial Statements
Lindner Investments
Financial Highlights
Lindner Growth and Income Fund
(Selected data for a share outstanding throughout the indicated period)
Year Ended June 30
------------------------------------------------
2003 2002(3) 2001 2000 1999
---- ----- ---- ---- ----
Net asset value, beginning of period $17.89 $21.14 $21.14 $23.50 $27.59
Income from investment operations
Net investment income 0.15(2) 0.24(2) 0.56(2) 1.07 2.16
Net realized and unrealized gains
(losses) on investments (0.13) (3.24) 0.01 (2.30) (3.80)
------ ------ ------ ------ ------
Total from investment operations 0.02 (3.00) 0.57 (1.23) (1.64)
------ ------ ------ ------ ------
Less distributions
Dividends from net investment income (0.15) (0.25) (0.57) (1.13) (1.95)
Dividends from net realized gains -- -- -- -- (0.50)
Return of capital (0.01) -- -- -- --
------ ------ ------ ------ ------
Total distributions (0.16) (0.25) (0.57) (1.13) (2.45)
------ ------ ------ ------ ------
Change in net asset value (0.14) (3.25) -- (2.36) (4.09)
------ ------ ------ ------ ------
Net asset value, end of period $17.75 $17.89 $21.14 $21.14 $23.50
====== ====== ====== ====== ======
Total return(1) 0.17% (14.27%) 2.78% (5.48%) (5.57%)
Ratios/supplemental data:
Ratio of expenses to average net assets:
Before expense waivers 1.31% 1.14% 0.84% 0.73% 0.66%
After expense waivers 1.25% 1.14% 0.84% 0.73% 0.66%
Ratio of net investment income
to average net assets:
Before expense waivers 0.84% 1.21% 2.63% 4.14% 8.03%
After expense waivers 0.90% 1.21% 2.63% 4.14% 8.03%
Portfolio turnover rate 32.80% 58.12% 170.40% 124.63% 31.74%
Net assets, end of period (in millions) $178 $211 $316 $448 $768
(1) 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 the period.
(2) Net investment income (loss) per share represents net investment income
(loss) divided by the daily average shares of beneficial interest
outstanding throughout each period.
(3) The Fund has adopted the provisions of the AICPA Audit and Accounting Guide
for Investment Companies and adopted the yield to maturity premium and
discount amortization method on fixed-income securities. The periods prior
to July 1, 2001 have not been restated to reflect the change in
presentation.
See Notes to Financial Statements
Lindner Investments
Financial Highlights
Lindner Communications Fund
(Selected data for a share outstanding throughout the indicated period)
Year Ended June 30
----------------------------------------------
2003 2002 2001 2000 1999
---- ---- ---- ---- ----
Net asset value, beginning of period $5.00 $9.62 $19.04 $14.81 $16.78
Income from investment operations
Net investment income (loss) (0.01)(2) 0.02(2) 0.17(2) 0.21 0.33
Net realized and unrealized gains
(losses) on investments 1.53 (4.61) (6.90) 4.55 0.44
----- ------ ------ ----- ----
Total from investment operations 1.52 (4.59) (6.73) 4.76 0.77
----- ------ ------ ----- ----
Less distributions
Dividends from net investment income -- (0.02) (0.18) (0.22) (0.33)
Dividends from net realized gains -- -- (2.51) (0.31) (2.41)
Return of capital -- (0.01) -- -- --
----- ------ ------ ----- ----
Total distributions -- (0.03) (2.69) (0.53) (2.74)
----- ------ ------ ----- ----
Change in net asset value 1.52 (4.62) (9.42) 4.23 (1.97)
----- ------ ------ ----- ----
Net asset value, end of period $6.52 $5.00 $9.62 $19.04 $14.81
===== ====== ====== ===== ====
Total return(1) 30.40% (47.82%) (38.99%) 32.49% 8.62%
Ratios/supplemental data:
Ratio of expenses to average net assets:
Before expense waivers 2.71% 1.85% 1.06% 0.93% 0.97%
After expense waivers 1.55% 1.40% 1.06% 0.93% 0.97%
Ratio of net investment income
(loss) to average net assets:
Before expense waivers (1.39%) (0.13%) 1.21% 1.22% 2.40%
After expense waivers (0.23%) 0.32% 1.21% 1.22% 2.40%
Portfolio turnover rate 11.87% 250.47% 246.70% 69.46% 137.51%
Net assets, end of period (in millions) $8 $8 $21 $42 $26
(1) 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 the period.
(2) Net investment income (loss) per share represents net investment income
(loss) divided by the daily average shares of beneficial interest
outstanding throughout each period.
See Notes to Financial Statements
Lindner Investments
Financial Highlights
Lindner Small-Cap Growth Fund
(Selected data for a share outstanding throughout the indicated period)
Year Ended June 30
--------------------------------------------------
2003 2002 2001 2000 1999
---- ---- ---- ---- ----
Net asset value, beginning of period $5.68 $7.83 $9.21 $8.06 $8.49
Income from investment operations
Net investment income (loss) (0.07)(2) (0.09)(2) (0.04)(2) 0.07 0.08
Net realized and unrealized gains
(losses) on investments (0.42) (2.06) (0.61) 1.22 (0.12)
Total from investment operations (0.49) (2.15) (0.65) 1.29 (0.04)
Less distributions
Dividends from net investment income -- -- (0.02) (0.10) (0.08)
Dividends from net realized gains -- -- (0.71) (0.04) (0.31)
Total distributions -- -- (0.73) (0.14) (0.39)
Change in net asset value (0.49) (2.15) (1.38) 1.15 (0.43)
Net asset value, end of period $5.19 $5.68 $7.83 $9.21 $8.06
Total return(1) (8.63%) (27.46%) (6.58%) 16.26% 0.11%
Ratios/supplemental data:
Ratio of expenses to average net assets:
Before expense waivers 2.34% 1.69% 1.07% 0.97% 0.94%
After expense waivers 1.50% 1.47% 1.07% 0.97% 0.94%
Ratio of net investment income (loss)
to average net assets:
Before expense waivers (2.23%) (1.56%) (0.50%) 0.61% 0.99%
After expense waivers (1.39%) (1.33%) (0.50%) 0.61% 0.99%
Portfolio turnover rate 105.60% 129.32% 210.65% 174.02% 65.98%
Net assets, end of period (in millions) $7 $10 $20 $27 $38
(1) 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 the period.
(2) Net investment income (loss) per share represents net investment income
(loss) divided by the daily average shares of beneficial interest
outstanding throughout each period.
See Notes to Financial Statements
Lindner Investments
Financial Highlights
Lindner Market Neutral Fund
(Selected data for a share outstanding throughout the indicated period)
Year Ended June 30
--------------------------------------------------
2003 2002 2001 2000 1999
---- ---- ---- ---- ----
Net asset value, beginning of period $5.87 $6.54 $6.60 $5.72 $5.65
Income from investment operations
Net investment income (loss) (0.05)(2) (0.09)(2 0.30(2) 0.23 0.23
Net realized and unrealized gains
(losses) on investments 0.24 (0.37) (0.12) 0.86 0.01
----- ----- ----- ----- -----
Total from investment operations 0.19 (0.46) 0.18 1.09 0.24
----- ----- ----- ----- -----
Less distributions
Dividends from net investment income -- (0.21) (0.24) (0.21) (0.17)
Dividends from net realized gains -- -- -- -- --
----- ----- ----- ----- -----
Total distributions -- (0.21) (0.24) (0.21) (0.17)
----- ----- ----- ----- -----
Change in net asset value 0.19 (0.67) (0.06) 0.88 0.07
----- ----- ----- ----- -----
Net asset value, end of period $6.06 $5.87 $6.54 $6.60 $5.72
===== ===== ===== ===== =====
Total return1 3.24% (7.09%) 2.58% 19.26% 4.29%
Ratios/supplemental data:
Ratio of expenses to average net assets:
Before expense waivers 4.10%(3) 3.28%(3) 2.13%(3) 1.93% 1.45%
After expense waivers 3.93%(4) 3.28% 2.13% 1.93% 1.45%
Ratio of net investment income (loss)
to average net assets:
Before expense waivers (1.02%)(5) (1.47%)5 4.46%5 3.71% 3.46%
After expense waivers (0.85%)(6) (1.47%) 4.46% 3.71% 3.46%
Portfolio turnover rate 187.39% 247.83% 497.77% 817.43% 104.92%
Net assets, end of period (in millions) $8 $8 $15 $22 $18
(1) 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 the period.
(2) Net investment income (loss) per share represents net investment income
(loss) divided by the daily average shares of beneficial interest
outstanding throughout each period. Net investment income before dividends
on short positions for the periods ended June 30, 2003, June 30, 2002 and
June 30, 2001 were $0.05, ($0.01) and $0.35, respectively.
(3) The operating expense ratio before expense waivers includes dividends on
short positions. The ratios excluding dividends on short positions for the
years ended June 30, 2003, June 30, 2002 and June 30, 2001 were 2.35%,
1.99% and 1.31%, respectively.
(4) The operating expense ratio after expense waivers includes dividends on
short positions. The ratio excluding dividends on short positions for the
year ended June 30, 2003, was 2.18%.
(5) The net investment income ratio before expense waivers includes dividends
on short positions. The ratios excluding dividends on short positions for
the years ended June 30, 2003, June 30, 2002 and June 30, 2001 were 0.73%,
(0.18%) and 5.28%, respectively.
(6) The net investment income ratio after expense waivers includes dividends on
short positions. The ratio excluding dividends on short positions for the
year ended June 30, 2003, was 0.90%.
See Notes to Financial Statements
Lindner Investments
Financial Highlights
Lindner Government Money Market Fund
(Selected data for a share outstanding throughout the indicated period)
Year Ended June 30
-----------------------------------------------------
2003 2002 2001 2000 1999
---- ---- ---- ---- ----
Net asset value, beginning of period $1.00 $1.00 $1.00 $1.00 $1.00
Income from investment operations
Net investment income 0.01(2) 0.02(2) 0.05(2) 0.05 0.05
----- ----- ----- ----- -----
Total from investment operations 0.01 0.02 0.05 0.05 0.05
----- ----- ----- ----- -----
Less distributions
Dividends from net investment income (0.01) (0.02) (0.05) (0.05) (0.05)
----- ----- ----- ----- -----
Change in net asset value -- -- -- -- --
----- ----- ----- ----- -----
Net asset value, end of period $1.00 $1.00 $1.00 $1.00 $1.00
===== ===== ===== ===== =====
Total return(1) 1.15% 2.15% 5.49% 5.26% 4.70%
Ratios/supplemental data:
Ratio of expenses to average net assets:
Before expense waivers 0.90% 0.66% 0.59% 0.51% 0.53%
After expense waivers 0.50% 0.50% 0.50% 0.50% 0.50%
Ratio of net investment income to average
net assets:
Before expense waivers 0.77% 2.03% 5.31% 5.10% 4.53%
After expense waivers 1.17% 2.19% 5.31% 5.10% 4.53%
Net assets, end of period (in millions) $19 $32 $40 $38 $44
(1) 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 the period.
(2) Net investment income per share represents net investment income divided by
the daily average shares of beneficial interest outstanding throughout each
period.
See Notes to Financial Statements
INDEPENDENT AUDITORS' REPORT
To the Board of Trustees and Shareholders of Lindner Funds:
We have audited the accompanying statements of assets and liabilities, including
the schedules of investments, of Lindner Funds, including Lindner Large-Cap
Growth Fund, Lindner Growth and Income Fund, Lindner Communications Fund,
Lindner Small-Cap Growth Fund, Lindner Market Neutral Fund, and Lindner
Government Money Market Fund (collectively, the "Funds") as of June 30, 2003,
and the related statements of operations for the year then ended, the statements
of changes in net assets for each of the two years in the period then ended, and
the financial highlights for each of the five years in the period then ended.
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, 2003, by correspondence with the Funds'
custodian 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, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of each
of the Funds as of June 30, 2003, the results of their operations for the year
then ended, the changes in their net assets for each of the two years in the
period then ended, and their financial highlights for each of the five years in
the period then ended, in conformity with accounting principles generally
accepted in the United States of America.
DELOITTE & TOUCHE LLP Chicago, Illinois
August 18, 2003
Lindner Investments
MANAGEMENT OF THE TRUST
Listed in the charts below is information regarding the Trustees and principal
officers of the Trust. The Trust's Statement of Additional Information includes
more information about the Trustees. To request a free copy, call
1-800-995-7777. The business address for each Trustee is 520 Lake Cook Road,
Suite 381, Deerfield, Illinois, 60015.
Disinterested Trustees:(1)
Each of the Trustees has served as a Trustee of the Trust continuously since
January 1993. Each Trustee oversees the six Funds which comprise the Trust.
Principal Occupation (s) Other Directorships(2)
Name and Age During Past 5 Years Held
- -----------------------------------------------------------------------------------------------------
Robert L. Byman, 57 Partner in the law firm of Jenner & Block, Chicago, None
Illinois, for more than five years.
Terence P. Fitzgerald, 48 Executive Vice President, Domestic Development, None
The Mills Corporation, since 1996. Senior Counsel,
The May Department Stores Company from 1993
until 1995.
Marc P. Hartstein, 50 President, Hart Communications Inc., a research and None
strategic planning firm. Marketing Director at Anheuser-
Busch, Inc. from 1982 to 2002.
Peter S. Horos, 54 Investment Manager, Allstate Life Insurance None
Company, Northbrook, Illinois, for more than five years.
Donald J. Murphy, 59 President of Murcom Financial, Ltd., a private None
investment firm, for more than five years.
Dennis P. Nash, 51 President, Nellis Feed Company, a feed ingredient None
broker, for more than five years.
Interested Trustees:(1)
Each Trustee has served as Trustee of the Trust continuously since January 1993.
Mr. Valassis has served as Chairman of the Board of Trustees since January 1993.
Mr. Ryback has served as President of the Trust since January 1993. Each Trustee
oversees the six Funds which comprise the Trust.
Principal Occupation (s) Other Directorships(2)
Name and Age During Past 5 Years Held
- ----------------------------------------------------------------------------------------------------------------
Doug T. Valassis(3), 50 Chairman, Chief Executive Officer and Trustee Acceptance Insurance
of the Trust. Chairman, a Director and Treasurer of Companies, Inc.
the Adviser since 1993. President of Franklin
Enterprises,
Inc., a private investment firm for more than 5 years.
Eric E. Ryback(4), 50 President and Trustee of the Trust. President and a None
Director of the Adviser since 1993.
Officers
Name, Age and Length of Time Served Principal Occupation (s)
Trust Position(s) Held as Trust Officer During Past 5 Years
Robert L. Miller, 46 Since April 2001 Vice President and Treasurer of
Vice President, Chief Financial Franklin Enterprises for more
Officer, Secretary and Treasurer than five years. Vice President
and
Chief Administrative Officer of
Lindner Asset Management, Inc.
(1) Each Trustee serves until he dies, resigns, or is removed; or if sooner,
until the election and qualification of his successor.
(2) Directorships include public companies and any company registered as an
investment company.
(3) Mr. Valassis is considered an "interested person" of the Trust, as defined
by the Investment Company Act of 1940, as amended (the "1940 Act"), because
he serves as Chairman, a Director and Treasurer of Lindner Asset
Management, Inc., the Trust's investment adviser.
(4) Mr. Ryback is considered an "interested person" of the Trust, as defined by
the 1940 Act, because he serves as President and a Director of Lindner
Asset Management, Inc., the Trust's investment adviser.
LINDNER INVESTMENTS
520 Lake Cook Road, Suite 381
Deerfield, Illinois 60015 TEL:
800-995-7777
Website: www.lindnerfunds.com
Email: lindnerfunds@usbank.com
BOARD OF TRUSTEES
Robert L. Byman T
erence P. Fitzgerald
Marc P. Hartstein
Peter S. Horos
Donald J. Murphy
Dennis P. Nash
Eric E. Ryback
Doug T. Valassis
INVESTMENT ADVISER
Lindner Asset Management, Inc.
CUSTODIAN
U.S. Bank, N.A.
COUNSEL
Dykema Gossett PLLC
TRANSFER AGENT
U.S. Bancorp Fund Services, LLC
DISTRIBUTOR
Quasar Distributors, LLC
INDEPENDENT AUDITORS
Deloitte & Touche LLP
Item 2. Code of Ethics.
Not applicable to annual reports filed for periods ending before July 15, 2003.
Item 3. Audit Committee Financial Expert.
Not applicable to annual reports filed for periods ending before July 15, 2003.
Item 4. Principal Accountant Fees and Services.
Not required for annual reports filed for periods ending before December 15,
2003.
Item 5. Audit Committee of Listed Registrants.
Not applicable to open-end investment companies.
Item 6. [Reserved]
Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End
Management Investment Companies.
Not applicable to open-end investment companies.
Item 8. [Reserved]
Item 9. Controls and Procedures.
(a) Based on their evaluation of the Registrant's Disclosure Controls and
Procedures as of a date within 90 days of the Filing Date, the Registrant's
President and Treasurer/CFO have determined that the Disclosure Controls
and Procedures (as defined in Rule 30a-2(c) under the Act) are designed to
ensure that information required to be disclosed by the Registrant is
recorded, processed, summarized and reported by the filing Date, and that
information required to be disclosed in the report is communicated to the
Registrant's management, as appropriate, to allow timely decisions
regarding required disclosure.
(b) There were no significant changes in the Registrant's internal controls or
in other factors that could significantly affect these controls subsequent
to the date of their evaluation, and there were no corrective actions with
regard to significant deficiencies and material weaknesses.
Item 10. Exhibits.
(a) Any code of ethics or amendment thereto. Not applicable to annual reports
for periods ending before July 15, 2003.
(b) Certifications pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
Filed herewith.
(c) Certification pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
Furnished herewith.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, the registrant has duly caused this report to be
signed on its behalf by the undersigned, thereunto duly authorized.
(Registrant) Lindner Investments
By (Signature and Title) /s/ Doug T. Valassis
----------------------------
Doug T. Valassis, Chairman
Date 8/28/2003
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, this report has been signed below by the
following persons on behalf of the registrant and in the capacities and on the
dates indicated.
By (Signature and Title) /s/ Doug T. Valassis
----------------------------
Doug T. Valassis, Chairman
Date: 8/28/2003
By (Signature and Title) /s/ Robert L. Miller
----------------------------
Robert L. Miller, Treasurer
Date 8/28/2003