1
LINDNER FUNDS
ADVISED BY RYBACK MANAGEMENT CORPORATION contents
----------------------------------------
7711 Carondelet Avenue, Ste 700
St. Louis, Missouri 63105
Tel: 314-727-5305
[LOGO] Fax: 314-727-9306
Statements of Assets & Liabilities p.2
Lindner Growth Fund
Letter from the Fund Managers p.4
Schedules of Investments p.5
Lindner Dividend Fund
Letter from the Fund Manager p.10
Schedules of Investments p.11
Lindner Utility Fund
Letter from the Fund Managers p.16
Schedules of Investments p.17
Lindner/Ryback Small-Cap Fund
Letter from the Fund Managers p.19
Schedules of Investments p.20
Lindner Bulwark Fund
Letter from the Fund Managers p.22
Schedules of Investments p.23
Lindner International Fund
Letter from the Fund Managers p.26
Schedules of Investments p.27
Statements of Operations p.30
Statements of Changes in Net Assets p.32
Notes to Financial Statements p.34
Financial Highlights p.42
Report of Independent Auditors p.44
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TO OUR SHAREHOLDERS
The 1997 fiscal year for the Lindner Funds, which ended June 30, 1997, saw a
continuation in the unprecedented strength in the stock market. The S&P 500
Index has more than doubled since the end of 1994, just 30 months ago. The
powerful combination of solid economic growth, low inflation and rising
corporate profits continues to drive stock prices to ever loftier levels. In
addition to these underlying elements, demographics and enthusiasm for
equities are fueling continuing inflows of money into stock mutual funds from
retirement-oriented vehicles such as 401(k)s.
While we enjoy reaping the rewards of a strong market as much as any other
investor, we would tend to echo the sentiment of Alan Greenspan, who said
some months ago that this market seemed to be characterized by irrational
exuberance. We remain true to our strong value orientation, carefully
analyzing every investment opportunity and owning those securities that are
selling at a discount to what a rational business person would pay for the
entire underlying company. While this investment style may not produce the
highest returns in a strong bull market, we remain confident that it will
serve our investors very well over the long term.
In the following pages, you will find discussions of the performance of each
of the Lindner Funds. If you would like more information about any of our
funds, please call your customer service representative at 800-995-7777 or
visit our Internet site, www.lindnerfunds.com. All of our portfolio managers
join me in thanking you for investing with us and for your continued interest
in the Lindner Funds.
/s/ Eric E. Ryback
Eric E. Ryback
President
2
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LINDNER INVESTMENTS
- --------------------------------------------------------------------------------------------------
STATEMENTS OF ASSETS AND LIABILITIES
JUNE 30, 1997
LINDNER GROWTH LINDNER
FUND DIVIDEND FUND
-------------- --------------
ASSETS
Investment securities, at value:
Unaffiliated issuers (identified cost
of $832,498,825, $1,864,711,622,
$39,723,776, $20,581,466, $54,918,845
and $4,117,714, respectively) $1,075,211,275 $1,881,447,327
Affiliated issuers (identified cost
$331,863,561, $88,260,357 and
$5,398,363, respectively) (Note 5) 413,905,495 115,471,836
Cash 229,329 1,167,683
Receivables:
Investments sold - long 7,309,083 23,240,231
Dividends and interest 2,551,863 19,810,781
Fund shares sold 47,225 414,850
Investments sold - short -- 4,808,795
Deposits with brokers for securities
sold short -- 2,854,647
Unamortized organizational expense
(Note 4) -- --
Other assets 32,429 48,164
-------------- --------------
Total assets 1,499,286,699 2,049,264,314
-------------- --------------
LIABILITIES
Accounts payable and accrued liabilities:
Investment securities purchased 1,385,882 8,468,298
Investments sold short, at value
(proceeds $4,808,795 and $14,467,684,
respectively) -- 5,576,563
Short sales covered -- --
Fund shares redeemed 2,218,714 7,266,488
Distribution to shareholders (Note 8) -- 6,278,337
Other liabilities:
Net variation margin on futures -- --
Management fee (Note 3) 509,643 2,662,129
Organizational expense (Note 4) -- --
Other 96,069 106,966
-------------- --------------
Total liabilities 4,210,308 30,358,781
-------------- --------------
NET ASSETS $1,495,076,391 $2,018,905,533
============== ==============
NET ASSETS CONSIST OF:
Capital (par value and additional
paid-in capital) $1,016,399,605 $1,850,394,425
Undistributed (overdistributed) net
investment income (loss) 9,710,325 (1,805,630)
Accumulated net realized gain (loss) on
investments and foreign currency
transactions 144,212,965 127,137,855
Net unrealized appreciation (depreciation)
on investments and translation of
assets and liabilities in foreign currency 324,753,496 43,178,883
-------------- --------------
NET ASSETS APPLICABLE TO OUTSTANDING SHARES $1,495,076,391 $2,018,905,533
============== ==============
NET ASSET VALUE PER SHARE
Investor shares:
NET ASSETS $1,494,974,794 $2,016,895,544
SHARES OUTSTANDING 57,542,095 72,192,150
-------------- --------------
$25.98 $27.94
============== ==============
Institutional shares:
NET ASSETS $101,597 $2,009,989
SHARES OUTSTANDING 3,916 72,030
============== ==============
$25.94 $27.90
============== ==============
2 See Notes to Financial Statements
3
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LINDNER INVESTMENTS
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STATEMENTS OF ASSETS AND LIABILITIES
JUNE 30, 1997
LINDNER LINDNER/RYBACK
UTILITY SMALL-CAP LINDNER BULWARK LINDNER
FUND FUND FUND INTERNATIONAL FUND
------- -------------- --------------- ------------------
ASSETS
Investment securities, at value:
Unaffiliated issuers (identified cost
of $832,498,825, $1,864,711,622,
$39,723,776, $20,581,466, $54,918,845
and $4,117,714, respectively) $45,323,794 $24,950,216 $47,676,347 $4,602,547
Affiliated issuers (identified cost
$331,863,561, $88,260,357 and
$5,398,363, respectively) (Note 5) -- -- 3,724,719 --
Cash 134,724 161,483 117,678 101,578
Receivables:
Investments sold - long 1,863,139 -- 174,523,549 --
Dividends and interest 167,181 2,350 1,523,469 9,805
Fund shares sold 1,250 3,345 50,170 --
Investments sold - short -- -- 14,467,684 --
Deposits with brokers for securities
sold short -- -- 22,394,699 --
Unamortized organizational expense
(Note 4) 7,820 8,871 19,752 17,704
Other assets 942 386 1,667 4,028
----------- ----------- ----------- ----------
Total assets 47,498,850 25,126,651 264,499,734 4,735,662
----------- ----------- ----------- ----------
LIABILITIES
Accounts payable and accrued liabilities:
Investment securities purchased 640,856 289,448 176,192,469 --
Investments sold short, at value
(proceeds $4,808,795 and $14,467,684,
respectively) -- -- 16,613,674 --
Short sales covered -- -- 834,214 --
Fund shares redeemed 20,091 -- 268,373 --
Distribution to shareholders (Note 8) 29,573 -- -- --
Other liabilities:
Net variation margin on futures -- -- 412,710 --
Management fee (Note 3) 27,177 13,783 65,033 3,831
Organizational expense (Note 4) 12,334 11,223 26,222 17,944
Other 4,903 1,834 6,694 3,110
----------- ----------- ----------- ----------
Total liabilities 734,934 316,288 194,419,389 24,885
----------- ----------- ----------- ----------
NET ASSETS $46,763,916 $24,810,363 $70,080,345 $4,710,777
=========== =========== =========== ==========
NET ASSETS CONSIST OF:
Capital (par value and additional
paid-in capital) $38,924,145 $19,281,350 $88,135,247 $4,144,864
Undistributed (overdistributed) net
investment income (loss) 31,617 5,434 2,224,739 (3,480)
Accumulated net realized gain (loss) on
investments and foreign currency
transactions 2,208,135 1,154,829 (8,258,470) 84,618
Net unrealized appreciation (depreciation)
on investments and translation of
assets and liabilities in foreign currency 5,600,019 4,368,750 (12,021,171) 484,775
----------- ----------- ----------- ----------
NET ASSETS APPLICABLE TO OUTSTANDING SHARES $46,763,916 $24,810,363 $70,080,345 $4,710,777
=========== =========== =========== ==========
NET ASSET VALUE PER SHARE
Investor shares:
NET ASSETS $46,710,103 $24,810,181 $68,511,110 $4,710,356
SHARES OUTSTANDING 2,965,947 3,234,177 10,225,666 420,969
----------- ----------- ----------- ----------
$15.75 $7.67 $6.70 $11.19
=========== =========== =========== ==========
Institutional shares:
NET ASSETS $53,813 $182 $1,569,235 $421
SHARES OUTSTANDING 3,418 24 235,277 38
=========== =========== =========== ==========
$15.74 $7.67 $6.67 $11.16
=========== =========== =========== ==========
See Notes to Financial Statements 3
4
Performance Summary
The Lindner Growth Fund's total return for the 1997 fiscal year was 12.5%
compared with a total return of 34.68% from the S&P 500 Index. Our
performance, though disappointing on a relative basis, is not surprising,
considering the very high price-earnings multiples in the market. As of June
30, the S&P 500 was selling at a ratio of 23.4 times earnings, with many of
the very largest companies, which carry substantial weight in the S&P Index,
at even higher multiples.
We remain true to our value-based, low P/E approach to investing, analyzing
opportunities for each company under consideration, buying when stocks seem
cheap and selling when they become expensive. In this high-flying market,
stocks that appear to offer good value are rare indeed. Over the long term,
however, we believe that our conservative approach is appropriate.
The continuing economic strength that politicians and executives at big
companies are gushing about has two consequences that are good for the
Lindner Growth Fund's portfolio. First, a strong economy should help the
companies in the portfolio make money. Second, with unemployment at a 20-year
low, it has become easier for labor unions to be aggressive in their demands.
If a few costly labor settlements begin to refuel inflation, the Federal
Reserve will surely react by raising interest rates, slowing further economic
growth. In recent months, our position in gold stocks has retarded the Fund's
performance; however, if inflation accelerates, they should be valuable as
insurance. Even without inflation, mining and energy companies that are able
to produce cheaply and sell at a good profit are positioned to increase
earnings, and stock valuations should increase accordingly.
/s/ Eric E. Ryback /s/ Larry Callahan /s/ Robert A. Lange
Eric E. Ryback Larry Callahan Robert A. Lange
President Portfolio Manager Portfolio Manager
August 8, 1997
Lindner Growth Fund
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FUND PROFILE
This diversified fund seeks long-term capital appreciation through
investments in common stocks or securities convertible into common stocks.
Income is a secondary objective.
portfolio composition by industry
June 30, 1997
[GRAPH]
4
5
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LINDNER INVESTMENTS
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SCHEDULES OF INVESTMENTS - JUNE 30, 1997
Number of Shares -
Principal Amount
Name of Issuer and Title of Issue of Bonds Value
- ---------------------------------------------- ------------------ -----------------
LINDNER GROWTH FUND
- -------------------
COMMON STOCKS (86.35%)
Aerospace/Defense (3.18%)
Alliant Techsystems, Inc. <Fa>,<F*> 865,000 $47,575,000
-----------------
Automobiles and Parts (0.27%)
The Coast Distribution Company <Fa>,<F*> 501,000 $1,690,875
Jason, Inc. <F*> 415,000 2,386,250
-----------------
$4,077,125
-----------------
Business Services (2.84%)
AlarmGuard Holdings (formerly Triton Group Ltd.) <Fa>,<F*> 369,430 $3,371,049
Autoinfo, Inc. <Fa>,<F*> 461,000 1,123,688
Highwaymaster Communications, Inc. <F*> 923,040 14,076,360
Hunt Manufacturing Co. 109,100 2,045,625
Information Resources, Inc. <F*> 260,000 3,672,500
Rollins, Inc. 510,100 10,265,763
Scientific Software Intercomp, Inc. <Fa>,<F*> 868,000 412,212
Superior Surgical Mfg. Company, Inc. <Fa> 493,000 5,792,750
Wave Technologies International, Inc. <Fa>,<F*> 232,500 1,627,500
-----------------
$42,387,447
-----------------
Chemicals and Allied Products (2.10%)
Ethyl Corporation 1,339,000 $12,385,750
Solvay & Cie S.A. <Ff> 32,200 18,988,595
-----------------
$31,374,345
-----------------
Computers and Electronic Equipment (1.15%)
7th Level, Inc. <Fa>,<F*> 1,066,951 $2,800,746
Amdahl Corporation <F*> 200,000 1,750,000
Buffton Corporation <Fa>,<F*> 501,000 1,127,250
Eagle Point Software Corporation <Fa>,<F*> 250,000 1,140,625
Gradco Systems, Inc. <Fa>,<F*> 706,000 3,618,250
Meridian Data, Inc. <F*> 376,200 1,645,875
Micronics Computers, Inc. <Fa>,<F*> 1,309,900 4,011,569
Scitex Corporation Ltd. 130,600 1,150,912
-----------------
$17,245,227
-----------------
Number of Shares -
Principal Amount
Name of Issuer and Title of Issue of Bonds Value
- ---------------------------------------------- ------------------ -----------------
Construction and Real Estate (0.67%)
Butler Manufacturing Company 240,000 $7,950,000
Mostostal Export Corporation - ADR 634,400 2,004,704
-----------------
$9,954,704
-----------------
Energy (9.06%)
Apache Corporation 225,000 $7,312,500
Archer Resources Ltd. <Ff>,<F*> 823,100 3,878,325
Barrington Petroleum Ltd. <Ff>,<F*> 555,500 2,214,752
Bitech Petroleum Corporation - Rule 144A <Fa>,<Ff>,<F*> 2,000,000 3,986,952
Harken Energy Corporation <F*> 2,800,000 19,600,000
Huntway Partners, L.P. <F*> 1,198,468 1,797,702
ICO Inc. 54,000 280,125
Lasmo plc-ADR 900,000 11,925,000
Lukoil Oil Company - ADR <F*> 12,000 933,000
Maynard Oil Company <Fa>,<F*> 487,700 7,925,125
Norex Industries, Inc. <F*> 1,030,200 16,483,200
Phillips Petroleum Company 400,000 17,500,000
Rowan Companies, Inc. <F*> 119,000 3,354,312
Sasol Ltd. <Ff> 250,000 3,279,682
Tidewater, Inc. 73,400 3,229,600
Union Pacific Resources Group, Inc. 100,000 2,487,500
USX-Marathon Group 400,000 11,550,000
Weatherford Enterra, Inc. <F*> 459,216 17,679,816
-----------------
$135,417,591
-----------------
Environmental Services (0.54%)
Dames & Moore, Inc. 143,900 $1,780,763
EMCON <Fa>,<F*> 465,400 1,803,425
Recycling Industries, Inc. <Fa>,<F*> 1,000,000 1,937,500
Tanknology Environmental, Inc. <Fa>,<F*> 1,416,100 2,566,680
-----------------
$8,088,368
-----------------
See Notes to Financial Statements 5
6
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LINDNER INVESTMENTS
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SCHEDULES OF INVESTMENTS - JUNE 30, 1997
Number of Shares -
Principal Amount
Name of Issuer and Title of Issue of Bonds Value
- ---------------------------------------------- ------------------ -----------------
LINDNER GROWTH FUND
- -------------------
Financial Services (6.26%)
Bancfirst Corporation 262,200 $8,783,700
Banco de Colombia S.A. - GDR - Rule 144A 250,000 1,546,875
Bangkok Bank Public Company Ltd. <Ff> 150,000 1,030,689
Banque Libanaise pour le Commerce SAL
GDR - Rule 144A <F*> 200,000 4,150,000
CPB, Inc. 84,939 3,163,978
The Chase Manhattan Corporation 105,000 10,191,562
CORUS Bankshares, Inc. 664,958 18,785,063
International Bancshares Corporation <Fa> 488,340 25,515,765
John Nuveen and Company, Inc. 656,300 20,509,375
-----------------
$93,677,007
-----------------
Food and Beverage (3.43%)
Bertucci's Inc. <F*> 124,600 $848,838
Buffets, Inc. <F*> 332,000 2,801,250
Danone Group <Ff> 15,000 2,480,880
Eskimo Pie Corporation <Fa> 245,000 2,970,625
Houlihan's Restaurant Group, Inc. <F*> 26,108 202,337
J & J Snack Foods Corporation <F*> 180,000 2,767,500
The Morningstar Group, Inc. <Fa>,<F*> 915,000 26,878,125
Savannah Foods & Industries, Inc. 394,000 6,919,625
United Grain Growers Ltd. <Ff> 400,000 4,363,900
Zapata Corporation <F*> 212,300 1,048,231
-----------------
$51,281,311
-----------------
Healthcare (2.94%)
Allied Healthcare Products, Inc. <Fa>,<F*> 655,200 $4,258,800
Angeion Corporation <F*> 491,900 2,121,319
Cardiometrics, Inc. <Fa>,<F*> 616,900 4,742,419
Cellpro, Inc. <F*> 447,500 2,685,000
Comprehensive Care Corporation - Rule 144A <Fa>,<F*> 250,000 3,031,250
Creative Biomolecules, Inc. <F*> 795,400 5,617,512
Cytogen Corporation <F*> 930,500 4,536,188
Endosonics Corporation <F*> 346,700 3,770,363
Fischer Imaging Corporation <F*> 92,700 556,200
Haemonetics Corporation <F*> 268,000 5,125,500
Physician Corporation of America <F*> 383,800 2,446,725
Number of Shares -
Principal Amount
Name of Issuer and Title of Issue of Bonds Value
- ---------------------------------------------- ------------------ -----------------
Healthcare (continued)
Rightchoice Managed Care, Inc. <Fa>,<F*> 259,200 $3,515,400
Summit Medical Systems, Inc. <Fa>,<F*> 564,800 1,553,200
-----------------
$43,959,876
-----------------
Industrial Products and Services (3.04%)
Buderus AG <Ff> 5,000 $2,754,663
Durakon Industries, Inc. <F*> 73,600 699,200
Lufkin Industries 122,240 3,208,800
MFRI, Inc. <Fa>,<F*> 341,000 3,239,500
Mitsubishi Heavy Industries, Ltd. <Ff> 400,000 3,072,621
Moore Products Company <F*> 61,500 1,345,312
Quixote Corporation <Fa> 704,500 5,636,000
Transtechnology Corporation <Fa> 300,000 6,825,000
Vitro, Sociedad Anonima - ADR <F*> 1,659,100 18,664,875
-----------------
$45,445,971
-----------------
Insurance (4.9%)
Acceptance Insurance Companies, Inc. <F*> 450,000 $10,237,500
Central Reserve Life Corporation 200,000 1,325,000
John Alden Financial Corporation 320,100 6,702,094
Lawyers Title Corporation 230,000 4,341,250
Hilb, Rogal and Hamilton Company <Fa> 1,000,000 17,000,000
Old Republic International Corporation 828,750 25,121,484
PICO Holdings, Inc. <F*> 921,821 4,148,194
Sphere Drake Holdings Ltd. 500,000 4,281,250
-----------------
$73,156,772
-----------------
Investments (3.09%)
Antofagasta Holdings P.L.C. <Ff> 950,000 $7,249,917
Dundee Bancorp, Inc. <Ff>,<F*> 300,400 6,968,322
Gateway Industries, Inc. <Fa>,<F*> 325,900 661,968
Minorco - ADR 1,360,000 31,365,000
-----------------
$46,245,207
-----------------
Leisure/Entertainment (3.23%)
American Classic Voyages Company <F*> 650,200 $6,989,650
Hasbro, Inc. 400,000 11,350,000
International Speedway Corporation, Class B 417,330 7,929,270
Jackpot Enterprises, Inc. 403,000 4,584,125
6 See Notes to Financial Statements
7
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LINDNER INVESTMENTS
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SCHEDULES OF INVESTMENTS - JUNE 30, 1997
Number of Shares -
Principal Amount
Name of Issuer and Title of Issue of Bonds Value
- ---------------------------------------------- ------------------ -----------------
LINDNER GROWTH FUND
- -------------------
Leisure/Entertainment (continued)
Maxis, Inc. <F*> 105,000 $1,260,000
Polaroid Corporation 100,000 5,550,000
Rawlings Sporting Goods Company, Inc. <F*> 55,000 508,750
Sotheby's Holdings, Inc. 467,600 7,890,750
Winnebago Industries, Inc. 303,500 2,181,406
-----------------
$48,243,951
-----------------
Metals Processing (0.27%)
Asturiana De Zinc, S.A. <Ff>,<F*> 144,171 $3,058,499
Republic Engineered Steels, Inc. <F*> 800,000 1,050,000
-----------------
$4,108,499
-----------------
Mining (7.55%)
Anvil Range Mining <Fa>,<Ff>,<F*> 1,222,000 $1,970,968
Ashanti Goldfields Company, Ltd. 232,910 2,722,136
AUR Resources, Inc. <Ff>,<F*> 600,000 2,696,629
Battle Mountain Gold 443,000 2,519,563
Bema Gold Corporation <Ff>,<F*> 1,422,100 8,607,854
Cambior, Inc. 600,000 6,787,500
Canyon Resources Corporation <Fa>,<F*> 2,382,400 5,807,100
Case Pomeroy & Company, Inc. 2,015 2,407,925
Case Pomeroy & Company, Inc., Class B 538 642,910
Dayton Mining Corporation <Fa>,<Ff>,<F*> 2,611,300 9,086,075
Energy Resources of Australia Ltd <Ff> 1,729,492 7,644,593
Getchell Gold Corporation <F*> 139,800 4,927,950
Goldcorp Inc., Class A <F*> 630,000 4,488,750
Homestake Mining Company 885,250 11,563,578
Kinross Gold Corporation <Ff>,<F*> 900,000 4,050,000
MK Gold Company <Fa>,<F*> 1,809,200 2,826,875
Meridian Gold, Inc. <F*> 2,000,000 8,750,000
Newmont Gold Company 199,800 7,979,513
The Pioneer Group, Inc. 200,000 4,600,000
Prime Resources Group, Inc. <Ff> 100,000 724,900
South American Gold and Copper Company Ltd. <Fa>,<Ff>,<F*> 950,000 447,626
Number of Shares -
Principal Amount
Name of Issuer and Title of Issue of Bonds Value
- ---------------------------------------------- ------------------ -----------------
Mining (continued)
TVX Gold, Inc. <Ff>,<F*> 800,000 $4,250,000
Uranium Resources, Inc. <Fa>,<F*> 855,525 5,026,209
Vengold Inc. <Ff>,<F*> 1,753,200 2,414,701
-----------------
$112,943,355
-----------------
Paper, Printing and Publishing (1.22%)
American Media, Inc., Class A <Fa>,<F*> 2,606,900 $18,248,300
-----------------
Real Estate Investment Trust (1.19%)
Ramco-Gershenson Properties Trust <Fa> 543,225 $9,574,341
Regency Realty Corporation 300,000 8,175,000
-----------------
$17,749,341
-----------------
Retail Trade (12.03%)
Ames Department Stores, Inc. <F*> 171,000 $1,656,563
CML Group, Inc. <Fa> 2,821,300 5,113,606
CPI Corporation <Fa> 957,100 20,099,100
Charming Shoppes, Inc. <Fa>,<F*> 8,325,200 43,446,721
Cole National Corporation, Class A <F*> 434,300 19,109,200
Dart Group Corporation, Class A 59,263 6,089,273
Egghead, Inc. <F*> 273,200 1,075,725
Fiberstars, Inc. <Fa>,<F*> 336,100 1,638,488
The Good Guys, Inc. <Fa>,<F*> 1,197,800 6,737,625
Handleman Company <Fa>,<F*> 3,216,200 20,503,275
InterTAN, Inc. <F*> 326,600 1,204,338
Juno Lighting, Inc. 380,000 6,175,000
Micro Warehouse, Inc. <F*> 686,000 11,747,750
Noodle Kidoodle, Inc. <Fa>,<F*> 613,900 2,302,125
Primesource Corporation 294,000 2,241,750
Rose's Stores, Inc. <Fa>,<F*> 848,036 1,139,506
Spaghetti Warehouse, Inc. <Fa>,<F*> 562,900 3,377,400
Stride Rite Corporation 494,800 6,370,550
Uni-Marts, Inc. <Fa>,<F*> 587,100 2,935,500
United Retail Group, Inc. <Fa>,<F*> 1,036,000 2,591,500
Zale Corporation <F*> 721,900 14,302,644
-----------------
$179,857,639
-----------------
See Notes to Financial Statements 7
8
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LINDNER INVESTMENTS
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SCHEDULES OF INVESTMENTS - JUNE 30, 1997
Number of Shares -
Principal Amount
Name of Issuer and Title of Issue of Bonds Value
- ---------------------------------------------- ------------------ ------------------
LINDNER GROWTH FUND
- -------------------
Software (2.45%)
General Magic, Inc. <Fa>,<F*> 1,626,400 $3,252,800
Novell, Inc. <F*> 4,654,500 32,290,594
Premenos Technology Corporation <F*> 121,000 1,028,500
-----------------
$36,571,894
-----------------
Telecommunications (2.49%)
Comsat Corporation 730,000 $17,383,125
Metricom, Inc. <Fa>,<F*> 1,346,000 8,580,750
Vertex Communications Corporation <Fa>,<F*> 420,000 11,235,000
-----------------
$37,198,875
-----------------
Transportation (5.44%)
Anangel-American Shipholdings Ltd. <F*> 680,900 $6,638,775
International Shipholding Corporation 76,550 1,306,134
Kirby Corporation <F*> 400,000 7,300,000
London & Overseas Freighters Ltd - ADR <Fa> 405,500 5,702,344
MIF Ltd. - ADR - Rule 144A <F*> 306,000 4,597,921
MTL, Inc. <F*> 167,900 3,924,663
Oglebay Norton Company 96,372 4,276,508
OMI, Inc. <Fa>,<F*> 2,425,000 23,189,063
Overseas Shipholding Group, Inc. 781,300 15,333,013
Stolt-Nielsen S.A. - ADR 275,000 5,328,125
Wah Kwong Shipping Holdings Ltd. <Ff> 3,060,759 3,713,746
-----------------
$81,310,292
-----------------
Utilities (5.24%)
Czech Power Company <Ff>,<F*> 177,007 $4,889,243
El Paso Electric Company <F*> 1,873,200 13,229,475
Huaneng Power International - ADR <F*> 202,700 5,168,850
Mosenergo
GDR - Rule 144A <F*> 43,200 1,814,400
GDR Regulation S <F*> 10,000 420,000
Noram Energy Corporation 3,467,300 52,876,325
-----------------
$78,398,293
-----------------
Number of Shares -
Principal Amount
Name of Issuer and Title of Issue of Bonds Value
- ---------------------------------------------- ------------------ -----------------
Miscellaneous (1.77%) $26,489,159
-----------------
Total Common Stocks (Cost $967,362,522) $1,291,005,549
-----------------
PREFERRED STOCKS (1.10%)
Business Services (0.27%)
Interleaf, Inc., Series C, convertible - Rule 144A <F*> 502,452 $4,019,616
-----------------
Energy (0.05%)
Westmoreland Coal Company, 8.50% convertible <Fa>,(#) 139,800 $733,950
-----------------
Healthcare (0.71%)
Comprehensive Care Corp., 4%, convertible - Rule 144A 41,260 $3,789,731
Hyseq, Inc., Series A convertible - Rule 144A <F*> 312,500 6,781,250
-----------------
$10,570,981
-----------------
Industrial Products and Services (0.04%)
Fedders Corporation $0.3812, convertible 94,000 $593,375
-----------------
Mining (0.03%)
Ashanti Goldfields Company, Ltd.
$0.648, Series A 204,517 $124,121
$0.648, Series B 204,517 112,259
$0.648, Series C 204,517 101,625
$0.648, Series D 204,517 91,992
$0.648, Series E 204,517 83,259
-----------------
$513,256
-----------------
Total Preferred Stocks (Cost $13,299,299) $16,431,178
-----------------
NON-CONVERTIBLE BONDS (0.93%)
Energy (0.25%)
Huntway Partners L.P., 12%, due 2005 - Rule 144A $3,697,696 $3,697,696
-----------------
8 See Notes to Financial Statements
9
- -------------------------------------------------------------------------------
LINDNER INVESTMENTS
- -------------------------------------------------------------------------------
SCHEDULES OF INVESTMENTS - JUNE 30, 1997
Number of Shares -
Principal Amount
Name of Issuer and Title of Issue of Bonds Value
- ---------------------------------------------- ------------------ ------------------
LINDNER GROWTH FUND
- --------------------
Financial Services (0.62%)
Beal Financial Corporation, 12.75%, due 2000 $5,675,000 $6,086,438
WSFS Financial Corporation, 11%, due 2005 3,050,000 3,233,000
-----------------
$9,319,438
-----------------
Miscellaneous (0.06%) $854,320
-----------------
Total Non-Convertible Bonds (Cost $13,511,781) $13,871,454
-----------------
CONVERTIBLE BONDS (1.65%)
Food and Beverage (1.08%)
TPI Enterprises, Inc., 8.25%, due 2002 $18,427,000 $16,100,591
-----------------
Mining (0.18%)
Anvil Range Mining Corporation, 8.5%, due 2002 <Ff> $2,000,000 $1,299,384
Dayton Mining Corporation, 7%, due 2002 - Rule 144A <Ff> 1,500,000 1,434,375
-----------------
$2,733,759
-----------------
Telecommunications (0.39%)
Metricom, Inc., 8%, due 2003 $7,500,000 $5,850,000
-----------------
Total Convertible Bonds (Cost $27,045,579) $24,684,350
-----------------
Number of Shares -
Principal Amount
Name of Issuer and Title of Issue of Bonds Value
- ---------------------------------------------- ------------------ -----------------
U.S. TREASURY BILLS (9.57%)
Maturing 7-3-97 to 8-21-97 (Cost $143,143,205) $143,600,000 $143,124,239
-----------------
Total Investments (Cost $1,164,362,386) 99.60% $1,489,116,770
Excess of Other Assets over Liabilities 0.40% $5,959,621
------------------ -----------------
Net Assets 100.00% $1,495,076,391
================== =================
<FN>
<F*> Non-income producing
<Fa> Denotes security is affiliated (See Note 5)
<Ff> Denotes security primarily traded in foreign markets
(F#) Dividends in arrears.
ADR American Depository Receipts
GDR Global Depository Receipts
See Notes to Financial Statements 9
10
Performance Summary
The Dividend Fund finished the year with a total return of 8.75% compared
with the S&P 500's total return of 34.68%. During the same time period, the
yield on the 30-year Treasury bond declined slightly from 6.87% to 6.79%.
However, the 30-year treasury bond traded in a range of 7.2% to 6.3%, a swing
of almost 100 basis points. The portfolio's average yield for the year was
5.9%, which compares very favorably to the one-year treasury bill rate of
5.1%.
The percentage of cash and cash equivalents fluctuated between 1.5% and 12%
over the fiscal year; it currently stands at 5%. The amount of cash held
depends upon available purchase ideas, sales and redemptions in the Fund.
The largest asset category, common stocks, reached a high of 45% of the
portfolio in December 1996 and was reduced to 35% by June 30, 1997. In order
to increase yield, the Fund continues to reduce common stock holdings,
replacing equities with higher-yielding preferred stock, convertible bonds
and straight bonds. Besides providing more income, these securities
traditionally offer greater insulation in a market downturn.
In common stocks, the two largest industry categories continue to be energy,
particularly natural gas, and utilities. A favorable supply/demand structure
and ongoing consolidation within the utility industry are creating investment
opportunities in certain undervalued utility stocks.
Thank you for your continued interest in the Dividend Fund. We will make
every effort to try to provide you with a steady source of income without
incurring undue risk.
/s/ Eric E. Ryback
Eric E. Ryback
President
August 8, 1997
Lindner Dividend Fund
- -----------------------------------------------------------------------------
FUND PROFILE
This fund's primary objective is to generate current income; capital
appreciation is a secondary goal. Investments include common stocks,
convertible and non-convertible preferred stocks and corporate bonds,
and debt securities issued or guaranteed by the U.S. government or its
agencies.
portfolio composition by investment category
June 30, 1997
[GRAPH]
10
11
- -------------------------------------------------------------------------------
LINDNER INVESTMENTS
- -------------------------------------------------------------------------------
SCHEDULES OF INVESTMENTS - JUNE 30, 1997
Number of Shares -
Principal Amount
Name of Issuer and Title of Issue of Bonds Value
- ---------------------------------------------- ------------------ ------------------
LINDNER DIVIDEND FUND
- ---------------------
COMMON STOCKS (39.02%)
Chemicals (2.77%)
Engelhard Corporation 1,600,000 $33,500,000
Ethyl Corporation 2,700,000 24,975,000
-----------------
$58,475,000
-----------------
Energy (8.57%)
Bitech Petroleum Corp. <Fa>,<Ff>,<F*> 2,660,895 $5,304,430
Enserch Exploration, Inc. <F*> 4,318,500 47,233,594
Equitable Resources, Inc. 900,000 25,537,500
Harken Energy Corporation <Fa>,<F*> 6,500,000 45,500,000
Seagull Energy Corporation <F*> 1,810,000 31,675,000
Teco Energy, Inc. 1,000,000 25,562,500
-----------------
$180,813,024
-----------------
Financial Services (1.41%)
American Bank of Connecticut <Fa> 122,300 $4,395,155
Community Bank - Warrants, expiring June 27, 1999 <F*> 85,000 318,750
John Nuveen and Company, Inc. 764,300 23,884,376
TeleBanc Financial Corporation - Warrants, expiring
May 1, 2004 <F*> 150,000 1,200,000
-----------------
$29,798,281
-----------------
Food (0.14%)
Spaghetti Warehouse, Inc. <Fa>,<F*> 479,900 $2,879,400
-----------------
Industrial Products and Services (0.01%)
Uniroyal Technology Corporation - Warrants, expiring June 1,
2003 <F*> 79,000 $177,750
-----------------
Investments (1.53%)
Minorco, ADR 1,400,000 $32,287,500
-----------------
Number of Shares -
Principal Amount
Name of Issuer and Title of Issue of Bonds Value
- ---------------------------------------------- ------------------ ------------------
Mining (2.08%)
Atlas Corporation <F*> 157,715 $64,064
Cameco Corporation <Ff> 515,000 19,319,500
North Ltd. <Ff> 5,000,000 18,916,692
Rustenburg Platinum - ADR <F*> 316 5,783
Uranium Resources, Inc.
Common stock <Fa>,<F*> 339,000 1,991,625
Common stock <Fa>,<F*>,<Fr> 500,000 2,937,500
Warrants, expiring May 31, 1998 - Rule 144A <F*> 625,000 625,000
-----------------
$43,860,164
-----------------
Real Estate Investment Trusts (0.19%)
Commercial Assets, Inc. 281,200 $1,880,525
Ramco-Gershenson Properties Trust 118,475 2,088,122
-----------------
$3,968,647
-----------------
Retail Trade (1.47%)
Charming Shoppes, Inc. <F*> 347,300 $1,812,453
Handleman Company <Fa>,<F*> 2,899,300 18,483,038
Jostens, Inc. 397,500 10,633,125
-----------------
$30,928,616
-----------------
Software (1.12%)
Novell, Inc. <F*> 3,400,000 $23,587,500
-----------------
Telecommunications (5.41%)
AT&T Corporation 700,000 $24,543,750
Comsat Corporation 1,811,400 43,133,962
Heartland Wireless Communications, Inc., Warrants, expiring
April 19, 2020 - Rule 144A <F*> 6,000 54,000
Koninkllijke PTT Nederland NV - Rule 144A <Ff> 540,000 21,221,865
Telephone and Data Systems, Inc. 660,000 25,038,750
-----------------
$113,992,327
-----------------
See Notes to Financial Statements 11
12
- -------------------------------------------------------------------------------
LINDNER INVESTMENTS
- -------------------------------------------------------------------------------
SCHEDULES OF INVESTMENTS - JUNE 30, 1997
Number of Shares -
Principal Amount
Name of Issuer and Title of Issue of Bonds Value
- ---------------------------------------------- ------------------ -----------------
LINDNER DIVIDEND FUND
- ---------------------
Telecommunications Equipment (0.34%)
Metricom, Inc. <Fa>,<F*> 1,120,500 $7,143,188
-----------------
Transportation (0.53%)
Transportacion Maritima Mexicana - ADR 1,821,300 $11,269,293
-----------------
Utilities (Gas, Electric & Water) (10.81%)
El Paso Electric Company <Fa>,<F*> 3,800,000 $26,837,500
Lenenergo - Rule 144A RDC <F*> 18 1,476,000
New York State Electric & Gas Corporation 500,000 10,437,500
NorAm Energy Corporation 2,454,500 37,431,125
Northeast Utilities 3,000,000 28,687,500
Ohio Edison Company 1,000,000 21,812,500
PacifiCorp 538,500 11,847,000
Public Service Enterprise Group, Inc. 550,000 13,750,000
Rao Gazprom
ADR - Rule 144A <F*> 577,500 9,925,781
ADR - Reg S <F*> 34,150 586,953
Texas Utilities Company 700,000 24,106,250
The Southern Company 900,000 19,687,500
Western Resources, Inc. 659,700 21,399,019
-----------------
$227,984,628
-----------------
Miscellaneous (2.64%) $55,705,698
-----------------
Total Common Stocks (Cost $772,059,103) $822,871,016
-----------------
PREFERRED STOCKS (27.15%)
Broadcast/Media (1.58%)
Cablevision Systems Corporation,
8.5% convertible 1,225,000 $33,228,125
-----------------
Computer and Electronic Equipment (3.32%)
The Titan Corporation, $1.00 convertible 70,300 $874,356
Unisys Corporation, $3.75 convertible 1,780,100 69,201,387
-----------------
$70,075,743
-----------------
Number of Shares -
Principal Amount
Name of Issuer and Title of Issue of Bonds Value
- ---------------------------------------------- ------------------ -----------------
Computers and Electronic Equipment (0.69%)
Vanstar Financing Trust, 6.75% convertible 366,000 $14,457,000
-----------------
Construction and Real Estate (0.70%)
LSB Industries, Inc., $3.25 convertible 391,100 $14,812,912
-----------------
Energy (9.77%)
ICO, Inc., $1.6875 convertible 442,500 $9,956,250
Lasmo PLC, Series A, 10% 492,600 12,776,812
Maxus Energy Corporation, 10% 200,000 5,262,500
McDermott International, Inc.,
$2.20 convertible 319,200 10,094,700
5.75% convertible - Rule 144A 662,500 31,800,000
Occidental Petroleum Corporation,
$3.875 convertible - Rule 144A 600,000 35,100,000
Synder Oil Corporation, $1.50 convertible 729,000 18,407,250
Tejas Gas Corporation,
$2.49 349,700 9,179,625
5.25% convertible 527,000 27,931,000
Western Gas Resources, Inc., $2.65 convertible 1,151,300 45,620,263
-----------------
$206,128,400
-----------------
Environmental Services (0.37%)
Environmental Systems, Series A, $1.75 459,582 $7,812,894
-----------------
Financial Services (2.16%)
ARM Financial Group, Inc., 9.5% 140,000 $3,710,000
Community Bank, Series B, 13% 196,500 5,452,875
Credit Lyonnais Capital S.C.A., 9.5% - Rule 144A 600,000 14,850,000
Riggs National Corporation, Series B, 10.75% 750,000 21,468,750
-----------------
$45,481,625
-----------------
Food (0.07%)
Flagstar Companies, Inc., $2.25 convertible <F#> 1,658,100 $1,554,469
-----------------
Healthcare (0.32%)
Hyseq, Inc., Series A convertible - Rule 144A <F*> 312,500 $6,781,250
-----------------
Leisure and Entertainment (0.90%)
Time Warner Inc./Hasbro, Inc., $1.24 convertible 446,500 $18,976,250
-----------------
12 See Notes to Financial Statements
13
- -------------------------------------------------------------------------------
LINDNER INVESTMENTS
- -------------------------------------------------------------------------------
SCHEDULES OF INVESTMENTS - JUNE 30, 1997
Number of Shares -
Principal Amount
Name of Issuer and Title of Issue of Bonds Value
- ---------------------------------------------- ------------------ -----------------
LINDNER DIVIDEND FUND
- ---------------------
Metals Processing (1.33%)
Armco Inc., $3.625 convertible 312,400 $13,316,050
USX Corporation, 6.5% convertible 307,000 14,755,188
-----------------
$28,071,238
-----------------
Mining (2.60%)
Freeport-McMoran Copper & Gold, Inc., Series B, variable rate 12,100 $373,588
Series C, variable rate 751,700 22,175,150
Pittston Company, $3.125 convertible - Rule 144A 825,200 32,182,800
-----------------
$54,731,538
-----------------
Paper, Printing and Publishing (0.19%)
Interleaf, Inc., Series C, convertible - Rule 144A <F*> 502,452 $4,019,616
-----------------
Real Estate Investment Trusts (1.47%)
Novastar Financial, Inc., Class A convertible and stock
purchase warrant - Rule 144A 666,667 $10,000,005
Prime Retail, Inc.,
$2.125 convertible 603,200 14,401,400
$2.625 preferred 260,000 6,500,000
-----------------
$30,901,405
-----------------
Transportation (0.71%)
Sea Containers Ltd., $4.00 convertible 300,000 $15,075,000
-----------------
Utilities (Gas, Electric & Water) (0.97%)
Central Maine Power Company,
4.75% 8,300 $419,150
5.25% 42,500 2,358,750
Cleveland Electric Illuminating Company, Series S, 9% 16,000 16,640,000
Texas-New Mexico Power Company, 4.65% 16,300 1,059,500
-----------------
$20,477,400
-----------------
Total Preferred Stocks (Cost $579,288,039) $572,584,865
-----------------
Number of Shares -
Principal Amount
Name of Issuer and Title of Issue of Bonds Value
- ---------------------------------------------- ------------------ -----------------
NON-CONVERTIBLE BONDS (13.83%)
Aerospace/Defense (0.53%)
Alliant Techsystems, Inc., 11.375%, due 2003 $10,000,000 $11,112,500
-----------------
Apparel & Other Textile Products (0.77%)
Hartmarx Corporation, 10.875%, due 2002 $15,555,000 $16,177,200
-----------------
Computer and Electronic Equipment (0.20%)
Scientific Software-Intercomp, Inc., 7% Note,
due 2001 with warrants attached - Rule 144A $5,000,000 $4,000,000
Streamlogic Corporation, 14%, due 1998 <F##> 832,976 166,595
-----------------
$4,166,595
-----------------
Construction and Real Estate (2.00%)
Avatar Holdings, Inc., 9%, due 2000 $4,168,000 $3,959,600
Congoleum Corporation, 9%, due 2001 13,700,000 13,905,500
Four Seasons Hotel, Inc., 9.125%, due 2000 - Rule 144A 13,100,000 14,066,125
Kaufman & Broad Home Corporation, 9.375%, due 2003 10,000,000 10,300,000
-----------------
$42,231,225
-----------------
Energy (0.28%)
Maxus Energy Corporation, 9.875%, due 2002 $3,000,000 $3,165,000
Wainoco Oil Corporation, 12%, due 2002 2,650,000 2,769,250
-----------------
$5,934,250
-----------------
Financial Services (2.62%)
Beal Financial Corporation, 12.75%, due 2000 $27,500,000 $29,493,750
TeleBanc Financial Corporation, 11.5%,
due 2004 5,500,000 5,445,000
WSFS Financial Corporation, 11%, due 2005 19,150,000 20,299,000
-----------------
$55,237,750
-----------------
See Notes to Financial Statements 13
14
- -------------------------------------------------------------------------------
LINDNER INVESTMENTS
- -------------------------------------------------------------------------------
SCHEDULES OF INVESTMENTS - JUNE 30, 1997
Number of Shares -
Principal Amount
Name of Issuer and Title of Issue of Bonds Value
- ---------------------------------------------- ------------------ ------------------
LINDNER DIVIDEND FUND
- ---------------------
Industrial Products and Services (1.30%)
Fruehauf Trailer Corporation, 14.75%,
due 2002 <F##> $23,962,000 $15,575,300
Rohr, Inc., Senior Notes 11.625%, due 2003 3,850,000 4,292,750
Uniroyal Technology Corporation, 11.75%, due 2003 7,900,000 7,623,500
------------------
$73,082,225,165
------------------
Leisure and Entertainment (0.12%)
GB Property Funding Corp., 10.875%, due 2004 $2,680,000 $2,425,400
------------------
Metals Processing (0.47%)
Armco Inc., 9.2%, due 2000 $9,935,000 $9,959,838
------------------
Mining (1.25%)
Kaiser Aluminum & Chemical Corporation, 9.875%, due 2002 $25,500,000 $26,328,750
------------------
Paper, Printing and Publishing (1.12%)
United States Banknote Corporation, 10.375%, due 2002 $18,100,000 $18,462,000
Valassis Communications, Inc., 9.375%, due 1999 5,000,000 5,165,385
------------------
$23,627,385
------------------
Retail (0.45%)
General Host Corporation, 11.5%, due 2002 $5,712,000 $5,690,580
Michaels Stores, Inc., 10.875%, due 2006 3,500,000 3,780,000
------------------
$9,470,580
------------------
Telecommunications (0.02%)
Heartland Wireless Communications, Inc., 13%, due 2002 $1,000,000 $367,500
------------------
Number of Shares -
Principal Amount
Name of Issuer and Title of Issue of Bonds Value
- ---------------------------------------------- ------------------ -----------------
Transportation (1.33%)
International Shipholding Corporation, 9%, due 2003 $2,000,000 $2,060,000
Transportacion Maritima Mexicana, S.A. de C.V., 9.25%, due 2003 26,100,000 26,034,750
-----------------
$28,094,750
-----------------
Utilities (Gas, Electric & Water) (1.23%)
Gascart, 9%, due 1998 - Rule 144A $16,224,000 $16,102,320
Public Service Company of New Mexico, 10.3%, due 2014 3,360,000 3,582,600
Texas-New Mexico Power Company, 9.25%, due 2000 6,000,000 6,227,268
-----------------
$25,912,188
-----------------
Miscellaneous (0.14%) $2,992,500
-----------------
Total Non-Convertible Bonds (Cost $288,119,633) $291,529,961
-----------------
CONVERTIBLE BONDS (7.30%)
Computer and Electronic Equipment (0.33%)
Atari Corporation, 5.25%, due 2002
(JTS Corporation) $14,067,000 $6,857,662
-----------------
Energy (0.20%)
Lone Star Technologies, Inc., 8% Eurobond, due 2002<Ff> $1,880,000 $2,049,200
Synder Oil Corporation, 7%, due 2001 2,000,000 2,070,198
-----------------
$4,119,398
-----------------
Industrial Products and Services (0.36%)
CML Group, Inc., 5.5%, due 2003 <Ff> $2,500,000 $1,825,000
Fedders Corp., 8.5%, due 2012 5,912,520 5,853,395
-----------------
$7,678,395
-----------------
14 See Notes to Financial Statements
15
- -------------------------------------------------------------------------------
LINDNER INVESTMENTS
- -------------------------------------------------------------------------------
SCHEDULES OF INVESTMENTS - JUNE 30, 1997
Number of Shares -
Principal Amount
Name of Issuer and Title of Issue of Bonds Value
- ---------------------------------------------- ------------------ -----------------
LINDNER DIVIDEND FUND
- ---------------------
Leisure and Entertainment (0.32%)
Savoy Pictures Entertainment, Inc., 7%, due 2003 (HSN Inc.) $8,071,000 $6,830,084
-----------------
Mining (0.83%)
Atlas Corporation, 9%, due 1998 - Rule 144A $3,500,000 $2,625,000
Pegasus Gold, Inc., 6.25%, due 2002 11,855,000 9,350,631
Uranium Resources, Inc., 6.5%, due 1998 - Rule 144A 4,500,000 5,625,000
-----------------
$17,600,631
-----------------
Real Estate Investment Trusts (0.37%)
Alexander Haagen Properties, Inc., Series A, 7.5%, due 2001 $8,062,000 $7,820,140
-----------------
Retail Trade (1.65%)
Charming Shoppes, 7.5%, due 2006 $28,025,000 $27,464,500
Michael Stores, Inc., 6.75%, due 2003 8,000,000 7,220,000
-----------------
$34,684,500
-----------------
Telecommunications (1.90%)
International CableTel Inc., 7%, due 2008 - Rule 144A $30,000,000 $28,462,500
Metricom Inc., 8%, due 2003 15,000,000 11,700,000
-----------------
$40,162,500
-----------------
Telecommunications Equipment (0.53%)
General Instrument Corporation, 5%,
due 2000 $9,812,000 $11,247,005
-----------------
Transportation (0.17%)
Offshore Logistics, Inc., 6%, due 2003 -
Rule 144A $3,230,000 $3,472,250
-----------------
Miscellaneous (0.64%) $13,528,894
-----------------
Total Convertible Bonds (Cost $157,550,809) $154,001,459
-----------------
Number of Shares -
Principal Amount
Name of Issuer and Title of Issue of Bonds Value
- ---------------------------------------------- ------------------ -----------------
U.S. TREASURY BILLS (7.39%)
Maturing 7-3-97 to 8-28-97
(Cost $155,954,395) <Fd> $156,600,000 $155,931,862
-----------------
Total Investments (Cost $1,952,971,979) 98.91% $1,996,919,163
Cash Deposit with Broker for Securities Sold Short 0.13% $2,854,647
Receivable from Brokers for Securities Sold Short 0.23% $4,808,795
Securities Sold Short 0.26% ($5,576,563)
Excess of Other Assets over Liabilities 0.99% $19,899,491
------------------ -----------------
Net Assets 100.00% $2,018,905,533
================== =================
SCHEDULE OF SECURITIES SOLD SHORT
Prime Retail, Inc. 415,000 $5,576,563
=================
<FN>
<F*> Non-income producing
<Fa> Denotes security is affiliated (See Note 5)
<Fd> $2,500,000 on deposit with custodian bank for securities sold short
<Ff> Denotes security primarily traded in foreign markets
<Fr> Denotes registered but restricted shares
<F#> Dividends are in arrears.
<F##> Denotes bond is in default
ADR American Depository Receipts
See Notes to Financial Statements 15
16
Performance Summary
The Lindner Utility Fund finished the fiscal year with a total return of
14.29%. This compares to the total return of the Dow Jones, S&P and New York
Stock Exchange utility indices of 8.40%, 5.56% and 16.38% respectively.
The continued bull market has made for tough comparisons to most indices by
active managers, especially those who subscribe to the value investing
philosophy. We remain committed to this approach, which we consider to be the
sanest and most prudent approach to building wealth through long-term
investing, which we regard as much different from "playing the market."
In this kind of market environment many investors have temporarily abandoned
the utility sector in favor of "hot money" investments. Additionally,
uncertainty prevailed as the electric and telecommunications industries
continued the process of deregulation. A few years ago, when the gas industry
underwent a similar evolution from monopolistic to competitive markets, we
were able to profit handsomely by owning the companies that became the
ultimate survivors or good companies that were bought out at large premiums
as the industry consolidated. We feel confident that we are positioned
correctly to be the beneficiaries of a similar change in the electric and
telecommunications industries. We also have raised our exposure to the
foreign sector from about 6% to nearly 20%, concentrating on emerging nations
where the supply of heat, light, telephony and other basic necessities of
life are far from being met and where the companies that supply these
essentials will grow and profit for years to come. For all of these reasons,
we feel proud of the performance of the Lindner Utility Fund this year.
For the future, it seems likely that many conservative investors in search of
safer havens will seek opportunities in undervalued areas such as the
industries in which the Lindner Utility Fund is active. In summary, we
believe that we have structured the portfolio with a favorable mix of
investments to best take advantage of the changes and the accompanying
opportunities that lie ahead. As ever, we are grateful for the support you
have given us in the past year.
/s/ Eric E. Ryback /s/ Rick Eckenrodt, Jr.
Eric E. Ryback Rick Eckenrodt, Jr.
President Portfolio Manager
August 8, 1997
Lindner Utility Fund
- -----------------------------------------------------------------------------
FUND PROFILE
This fund seeks current income through investments in securities of domestic
and foreign public utility companies, with capital appreciation as a
secondary goal. Utilities are broadly defined to include companies that
provide basic services on a regular basis.
portfolio composition by industry
June 30, 1997
[GRAPH]
16
17
- -------------------------------------------------------------------------------
LINDNER INVESTMENTS
- -------------------------------------------------------------------------------
SCHEDULES OF INVESTMENTS - JUNE 30, 1997
Number of Shares -
Principal Amount
Name of Issuer and Title of Issue of Bonds Value
- ---------------------------------------------- ------------------ -----------------
LINDNER UTILITY FUND
- --------------------
COMMON STOCKS (77.55%)
Broadcast/Media (2.38%)
Scandinavian Broadcasting System SA <F*> 50,000 $1,112,500
-----------------
Cable Television Equipment/Systems (2.16%)
Tescorp, Inc. <F*> 288,300 $1,009,050
-----------------
Energy (17.95%)
Bitech Petroleum Corporation,
Common <F*>,<Ff> 256,800 $511,925
Warrants, expiring August 31, 1997 <F*>,<Ff> 4,000,000 0
Enserch Exploration, Inc. <F*> 142,300 1,556,406
Harken Energy Corporation <F*> 525,000 3,675,000
Seagull Energy Corporation <F*> 80,000 1,400,000
Synder Oil Corporation 51,000 937,125
Union Texas Petroleum Holdings, Inc. 15,000 314,062
-----------------
$8,394,518
-----------------
Industrial Products and Services (2.02%)
Daily Petroleum Services Corporation <F*> 73,300 $494,775
Seversky Tube Works - ADR <F*> 15,000 450,000
-----------------
$944,775
-----------------
Mining (4.37%)
Energy Resources of Australia Ltd. <Ff> 196,413 $868,173
Uranium Resources, Inc. <F*> 200,000 1,175,000
--------------
$2,043,173
--------------
Telecommunications (7.91%)
360 Degree Communications Company <F*> 80,000 $1,370,000
Comsat Corporation 50,000 1,190,625
Telephone and Data Systems, Inc. 30,000 1,138,125
--------------
$3,698,750
--------------
Utilities (Gas, Electric & Water) (36.07%)
CMS Energy Corporation 45,000 $1,586,250
Duke Power Company 35,000 1,677,813
El Paso Electric Company <F*> 273,000 1,928,062
Number of Shares -
Principal Amount
Name of Issuer and Title of Issue of Bonds Value
- ---------------------------------------------- ------------------ -----------------
Utilities (Gas, Electric & Water) (continued)
Irkutskenergo - ADR 50,000 $862,500
Lenenergo - RDC - Rule 144A <F*> 10 820,000
Mosenegro - GDR - Rule 144A <F*> 13,000 546,000
Northeast Utilities 110,500 1,056,656
Ohio Edison Company 50,000 1,090,625
Pacific Enterprises, Inc. 25,000 840,625
Pacific Gas and Electric Company 50,000 1,212,500
Pacificorp 40,000 880,000
Rao Gazprom ADR - Rule 144A <F*> 40,000 687,500
Teco Energy, Inc. 50,000 1,278,125
Texas Utilities Company 25,000 860,937
Unified Energy Systems - Reg S ADR <F*> 15,650 567,313
Western Resources, Inc. 30,000 973,125
-----------------
$16,868,031
-----------------
Miscellaneous (4.69%) $2,194,900
-----------------
Total Common Stocks (Cost $31,667,118) $36,265,697
-----------------
PREFERRED STOCKS (15.10%)
Cable Television Equipment/Systems (5.22%)
Cablevision Systems Corporation, Series I, 8.50% convertible 90,000 $2,441,250
-----------------
Energy (7.79%)
Lukoil Holdings - Preference ADR -
Rule 144A <F*> 25,000 $640,625
Maxus Energy, 10% 15,000 394,688
Synder Oil Corporation, $1.50 convertible 30,000 757,500
Tejas Gas Corporation, 5.25% convertible 6,500 344,500
Western Gas Resources, Inc., $2.625 38,000 1,505,750
-----------------
$3,643,063
-----------------
See Notes to Financial Statements 17
18
- -------------------------------------------------------------------------------
LINDNER INVESTMENTS
- -------------------------------------------------------------------------------
SCHEDULES OF INVESTMENTS - JUNE 30, 1997
Number of Shares -
Principal Amount
Name of Issuer and Title of Issue of Bonds Value
- ---------------------------------------------- ------------------ -----------------
LINDNER UTILITY FUND
- --------------------
Utilities (Gas, Electric & Water) (2.09%)
Central Maine Power Company, 4.75% 11,096 $560,348
Central Maine Power Company, 5.25% 7,500 416,250
-----------------
$976,598
-----------------
Total Preferred Stocks (Cost $6,104,010) $7,060,911
-----------------
CONVERTIBLE BONDS (4.06%)
Cable Television Equipment/Systems (4.06%)
International CableTel, Inc., 7%, due 2008 - Rule 144A $2,000,000 $1,897,500
-----------------
Total Convertible Bonds (Cost $1,852,954) $1,897,500
-----------------
Number of Shares -
Principal Amount
Name of Issuer and Title of Issue of Bonds Value
- ---------------------------------------------- ------------------ -----------------
U. S. TREASURY BILLS (0.21%)
Maturing 7-24-97 (Cost $99,694) $100,000 $99,686
-----------------
Total Investments (Cost $39,723,776) 96.92% $45,323,794
Excess of Other Assets over Liabilities 3.08% $1,440,122
------------------ -----------------
Net Assets 100.00% $46,763,916
================== =================
<FN>
<F*> Non-income producing
<Ff> Denotes security primarily traded in foreign markets
ADR American Depository Receipts
GDR Global Depository Receipts
RDC Russian Depository Receipts
Reg S - Regulation S
18 See Notes to Financial Statements
19
Lindner/Ryback
Small-Cap Fund
- ---------------------------------------------------------------------------
FUND PROFILE
The investment objective of this fund is long-term capital appreciation
through investments in common stocks or convertible securities of companies
with market capitalization of $750 million or less. Income is a secondary
objective.
Performance Summary
For the fiscal year ended June 30, 1997, the Lindner/Ryback Small Cap Fund's
total return was 24.96%. This compares favorably with the Russell 2000 Index
of Small Capitalization stocks' total return of 16.21% during the same
period. For the first six months of calendar 1997, the Fund's return was
15.36%, versus 10.17% for the Russell 2000.
Our performance continues to be supported by the overall bull market for
stocks. Nevertheless, we are pleased that we have been able to exceed the
Russell 2000 with our value-based orientation.
Our returns for the past six months were broadly based. However, two stocks
in particular added meaningfully to the results: Transitional Hospitals and
Aviall. In the beginning of the year we purchased Transitional Hospitals for
the portfolio. A few months later, the company received a takeover bid from
Vencor at significantly higher prices. While the analysis of the company was
correct, our timing was unusually lucky and we would not have predicted such
a fortunate outcome so quickly. Aviall is an airline parts distribution
company that is emerging from near bankruptcy a year ago. A successful
turnaround is becoming more apparent and the company's free cash flow has
exceeded expectations. We believe this is just the beginning of the story and
expect to be long-term investors in the company.
Despite favorable relative returns, the past six months were not without
mistakes. By far the biggest thumb-sucking episode was our holding in
Integon, a provider of auto insurance to high-risk drivers. Our first error
was underestimating the magnitude of the deficiency in the company's loss
reserves. Our second error was to allow the position to be as large as it
was, given the nature of the business and management's spotty track record.
Our final error (three are more than enough!) was selling the position too
soon once we had identified the problems. It is inevitable that we will make
mistakes in the future, we would hope to limit the compounding factor.
In closing, we believe our free cash flow/asset value discipline will serve
us well in both good and bad markets -- but certainly more appreciated during
the latter. Thank you for your continued patience and support.
/s/ Eric E. Ryback /s/ Donald Wang
Eric E. Ryback Donald Wang
President Portfolio Manager
August 8, 1997
19
20
- -------------------------------------------------------------------------------
LINDNER INVESTMENTS
- -------------------------------------------------------------------------------
SCHEDULES OF INVESTMENTS - JUNE 30, 1997
Number of Shares -
Principal Amount
Name of Issuer and Title of Issue of Bonds Value
- ---------------------------------------------- ------------------ -----------------
LINDNER/RYBACK SMALL-CAP FUND
- -----------------------------
COMMON STOCKS (86.48%)
Asset Management (1.35%)
Lexington Global Asset Managers, Inc. <F*> 48,800 $335,500
-----------------
Banking (1.21%)
Pennfed Financial Services, Inc. 11,000 $299,750
-----------------
Broadcasting (2.51%)
Scandinavian Broadcasting System SA <F*> 28,000 $623,000
-----------------
Cabletelevision Equipment/Systems (3.96%)
Tescorp, Inc. <F*> 280,400 $981,400
-----------------
Commercial Services (1.44%)
Automobile Protection Corporation <F*> 15,000 $52,500
Duff & Phelps Credit Rating Company 10,000 303,750
-----------------
$356,250
-----------------
Distributors (13.13%)
Aviall, Inc. <F*> 64,900 $908,600
Hawkins Chemical, Inc. 20,000 165,000
Rexel, Inc. <F*> 45,000 832,500
Richey Electronics, Inc. <F*> 54,000 452,250
Southern Electronics Corporation <F*> 70,000 901,250
-----------------
$3,259,600
-----------------
Electrical Generation (2.16%)
NRG Generating (U.S.), Inc. <F*> 37,000 $536,500
-----------------
Electronic Equipment (2.29%)
Optek Technology, Inc. <F*> 38,800 $567,450
-----------------
Energy (8.21%)
Berry Petroleum Company, Class A 15,000 $285,000
Castle Energy Corporation <F*> 82,100 1,098,088
Plains Resources, Inc. <F*> 44,400 654,900
-----------------
$2,037,988
-----------------
Number of Shares -
Principal Amount
Name of Issuer and Title of Issue of Bonds Value
- ---------------------------------------------- ------------------ -----------------
Food and Beverage (2.92%)
Corby Distillers Ltd., Class A <Ff> 20,000 $724,800
-----------------
Health and Beauty (1.95%)
The Stephan Company 45,000 $483,750
-----------------
Industrial Products and Services (2.62%)
MFRI, Inc. <F*> 68,500 $650,750
-----------------
Insurance (3.57%)
Cotton States Life Insurance Company 40,000 $665,000
Hilb, Rogal and Hamilton Company 13,000 221,000
-----------------
$886,000
-----------------
Manufacturing (2.66%)
Transtechnology Corporation 29,000 $659,750
-----------------
Metals Processing (1.87%)
Material Sciences Corporation <F*> 30,000 $463,125
-----------------
Mining (1.18%)
Uranium Resources, Inc. <F*> 50,000 $293,750
-----------------
Paper, Printing and Publishing (5.92%)
American Media, Inc., Class A <F*> 92,000 $644,000
Schweitzer-Mauduit International, Inc. 22,000 825,000
-----------------
$1,469,000
-----------------
Pipeline Services (2.30%)
Kaneb Services, Inc. <F*> 155,000 $571,562
-----------------
Real Estate Investment Trusts (2.71%)
Tanger Factory Outlet Centers, Inc. 25,000 $671,875
-----------------
20 See Notes to Financial Statements
21
- -------------------------------------------------------------------------------
LINDNER INVESTMENTS
- -------------------------------------------------------------------------------
SCHEDULES OF INVESTMENTS - JUNE 30, 1997
Number of Shares -
Principal Amount
Name of Issuer and Title of Issue of Bonds Value
- ---------------------------------------------- ------------------ -----------------
LINDNER/RYBACK SMALL-CAP FUND
- -----------------------------
Real Estate Services (7.48%)
Cardinal Realty Services, Inc. <F*> 28,000 $651,000
Fairfield Communities, Inc. <F*> 20,000 672,500
Resurgence Properties, Inc. <F*> 74,600 531,525
-----------------
$1,855,025
-----------------
Restaurants (3.32%)
Host Marriott Services Corporation <F*> 70,000 $822,500
-----------------
Retail Trade (5.08%)
Charming Shoppes, Inc. <F*> 25,000 $130,468
Fingerhut Companies, Inc. 40,000 697,500
Shopko Stores, Inc. 17,000 433,500
-----------------
$1,261,468
-----------------
Tobacco Products (4.06%)
M & F Worldwide Corporation (formerly Power Control
Technologies, Inc.) <F*> 115,000 $1,006,250
-----------------
Utilities (Gas, Electric & Water) (2.19%)
El Paso Electric Company <F*> 77,000 $543,812
-----------------
Miscellaneous (0.39%) $96,000
-----------------
Total Common Stocks (Cost $17,088,015) $21,456,855
-----------------
Number of Shares -
Principal Amount
Name of Issuer and Title of Issue of Bonds Value
- ---------------------------------------------- ------------------ -----------------
U.S. TREASURY BILLS (14.08%)
U. S. Treasury Bills, maturing 7-3-97 to
7-24-97 (Cost $3,493,451) $3,500,000 $3,493,361
-----------------
Total Investments (Cost $20,581,466) 100.56% $24,950,216
Excess of Other Liabilities over Assets -0.56% $(139,853)
------------------ -----------------
Net Assets 100.00% $24,810,363
================== =================
<FN>
<F*> Non-income producing
ADR American Depository Receipts
See Notes to Financial Statements 21
22
Performance Summary
The Lindner Bulwark Fund ended the fiscal year ended June 30, 1997, with a
total return of (18.43%). There are several reasons for the Fund's
disappointing performance during this period.
* The Fund was positioned, through ownership of put options, to take
advantage of a decline in the broad market indices, which did not occur.
Infact, the total return from the S&P 500 Index was 34.68%.
* Our short positions, with several exceptions, were buoyed by the strong
market, hampering performance.
* The price of gold declined sharply during the period, with the sell-off
driven by a remarkable lack of inflation in the U.S. economy, the
announcement of the sale of a significant part of the Australian Central
Bank's holdings of gold, and fallout from the revelation that the Bre-X
gold mine was a hoax.
* Our long equity positions have been concentrated in smaller-capitalization
value stocks and companies undergoing restructuring. This segment of the
equity market has dramatically underperformed the broad market averages
over the past year.
It is fair to ask, as we have done frequently over the past year, whether the
Fund's objective -- to manage investors' capital to preserve and grow it in
the secular market decline that we regard as imminent -- is still relevant.
We believe that the objective is still relevant; in fact, is more relevant
than ever. However, the techniques that we have employed to achieve that
objective have been too extreme for recent markets and have proven to be
inconsistent with prudent risk control. We are therefore changing the
techniques while remaining true to the objective.
In practical terms, we are taking several significant actions:
1. Becoming more inclined to use cash as a means of downside protection.
Our non-margin-related cash balance as we write this letter is
approaching 25% of the Fund's net assets.
2. Increasing the number of individual short sales to lessen the negative
impact that one or two large positions can have on the Fund's daily net
asset value.
3. Monitoring our commitment to gold, in the form of gold call options,
futures, and the common stocks of gold mining companies. While we
continue to believe that gold-related securities hold considerable
value following the dramatic price decline in the commodity over the
last year, we acknowledge that in today's market there are viable
alternatives to gold as a hedge against inflation or financial crises.
These alternatives include shorting interest-sensitive equities or
market indices.
4. Continually evaluating our use of index options, in recognition of
their limited life and the total loss of investment in a rising market.
We do not believe that this change in technique constitutes a "new" or
"untested" strategy. We see it as entirely in line with the objective of the
Fund and the way we have always managed capital. The point is not to conform
to the market, but to recognize the reality of today's market and operate as
prudently as possible within that reality. Leveraged instruments such as
options and futures can enhance performance when used properly, but we must
not rely on them to provide performance. We will continue to short individual
securities and purchase undervalued securities, using the same analytical
disciplines we have employed in the past, and leave the daily movements of
the market averages to others. This emphasis on pure, fundamentals-driven
stock picking will, we believe, allow us to begin to reverse the losses of
the last 12 months. It will also allow for much easier analysis of the Fund's
current positioning.
The results of the past year can only be described as humbling. However, to
stick with the same techniques rather than reappraising them would be to let
pride stand in the way of reason. We have carefully evaluated the Fund and
are in the process of overhauling its holdings. We remain committed first to
recovering our losses of the past year and then to providing a consistent
after-tax return going forward, with a clear eye on capital preservation. We
would like to thank our shareholders for staying with us over the past year,
and hope you will give us the opportunity to regain your trust and rebuild
your capital. We are confident that these goals can be achieved.
/s/ Eric E. Ryback /s/ Larry Callahan /s/ Bob Buettner
Eric E. Ryback Larry Callahan Bob Buettner
President Portfolio Manager Portfolio Manager
August 8, 1997
Lindner
Bulwark Fund
- -----------------------------------------------------------------------------
FUND PROFILE
This non-diversified fund is designed to preserve capital in times of
economic adversity, with current income as a secondary objective. Investments
include undervalued securities and precious metals, which have historically
maintained their value when fixed income and equity markets are generally
declining.
22
23
- -------------------------------------------------------------------------------
LINDNER INVESTMENTS
- -------------------------------------------------------------------------------
SCHEDULES OF INVESTMENTS - JUNE 30, 1997
Number of Shares -
Principal Amount
Name of Issuer and Title of Issue of Bonds Value
- ---------------------------------------------- ------------------ -----------------
LINDNER BULWARK FUND
- --------------------
COMMON STOCKS (42.54%)
Computer and Electronic Equipment (5.00%)
Buffton Corporation <Fa>,<F*> 473,000 $1,064,250
Gradco Systems, Inc. <F*> 331,000 1,696,375
Hand Technologies, Inc.--Rule 144A 528,000 330,000
Scientific Software Intercomp, Inc. <Fa>,<F*> 862,000 409,364
-----------------
$3,499,989
-----------------
Energy (11.93%)
Carbo Ceramics, Inc. <F*> 35,000 $953,750
Credo Petroleum Corporation <F*> 67,000 129,813
Harken Energy Corporation <F*> 50,000 350,000
Maynard Oil Company <F*> 126,100 2,049,125
Norex Industries, Inc. <F*> 200,200 3,203,200
Petroleum Helicopters, Inc.
Non-voting common 34,100 554,125
Voting common 65,600 1,123,400
-----------------
$8,363,413
-----------------
Environmental Services (0.13%)
Tanknology Environmental, Inc. <F*> 50,500 $91,531
-----------------
Investments (1.82%)
Gateway Industries, Inc. <Fa>,<F*> 234,300 $475,910
Royce Global Trust, Inc. <F*> 160,000 800,000
-----------------
$1,275,910
-----------------
Mining (15.71%)
AZCO Mining, Inc. <F*> 104,000 $143,000
Acacia Resources Ltd. <F*>,<Ff> 238,069 310,339
Bema Gold Corporation <F*>,<Ff> 159,300 964,230
Canyon Resources Corporation <F*> 652,500 1,590,469
Dayton Mining Corporation <F*>,<Ff> 400,000 1,391,809
Getchell Gold Corporation (formerly FirstMiss Gold, Inc.) <F*> 24,700 870,675
MK Gold Company <F*> 959,600 1,499,375
Plutonic Resources Ltd. <Ff> 200,000 620,318
Number of Shares -
Principal Amount
Name of Issuer and Title of Issue of Bonds Value
- ---------------------------------------------- ------------------ -----------------
Mining (continued)
South American Gold and Copper Company, Ltd., Warrants,
expiring July 15, 1998 - Rule 144A <F*>,<Ff> 1,132,950 $0
TVI Pacific, Inc. <Ff>,<F*> 200,000 49,293
Uranium Resources Inc. - Warrants, expiring May 31, 1998 - Rule
144A <F*> 375,000 375,000
Uranium Resources Inc. <F*> 275,000 1,615,625
Vengold, Inc. <F*>,<Ff> 1,149,000 1,582,530
-----------------
$11,012,663
-----------------
Retail Trade (5.01%)
Egghead, Inc. <F*> 89,000 $350,437
The Good Guys, Inc. <F*> 108,100 608,062
Handleman Company 220,500 1,405,687
Rose's Stores, Inc. <Fa>,<F*> 855,005 1,148,870
-----------------
$3,513,056
-----------------
Telecommunications (1.82%)
Metricom, Inc. <F*> 200,000 $1,275,000
-----------------
Miscellaneous (1.12%) $781,943
-----------------
Total Common Stocks (Cost $33,527,997) $29,813,505
-----------------
PREFERRED STOCKS (2.83%)
Healthcare (1.94%)
Hyseq, Inc., Series A convertible - Rule 144A <F*> 62,500 $1,356,250
-----------------
Mining (0.89%)
Westmoreland Coal Company, 8.50% convertible <F#>,<Fa> 119,300 $626,325
-----------------
Total Preferred Stocks (Cost $2,284,391) $1,982,575
-----------------
See Notes to Financial Statements 23
24
- -------------------------------------------------------------------------------
LINDNER INVESTMENTS
- -------------------------------------------------------------------------------
SCHEDULES OF INVESTMENTS - JUNE 30, 1997
Number of Shares -
Principal Amount
Name of Issuer and Title of Issue of Bonds Value
- ---------------------------------------------- ------------------ -----------------
LINDNER BULWARK FUND
- --------------------
NON-CONVERTIBLE BONDS (1.35%)
Mining (1.35%)
South American Gold and Copper Company,
Ltd., 10%, due 1998 - Rule 144A <Ff> CAD $1,300,000 $942,370
-----------------
Total Non-Convertible Bonds (Cost $949,252) $942,370
-----------------
CONVERTIBLE BONDS (2.68%)
Mining (2.68%)
Uranium Resources Inc., 6.5% Senior Secured, due 1998 - Rule
144A $1,500,000 $1,875,000
-----------------
Total Convertible Bonds (Cost $1,949,718) $1,875,000
-----------------
CALL OPTIONS (0.80%) Contracts
------------------
Gold (0.36%)
August 1997 $410 350,000 $70,000
November 1997 $360 50,000 90,000
July 1998 $450 200,000 90,000
-----------------
$250,000
-----------------
Newmont Mining Corporation (0.44%)
September 1997 $37.50 1,000 $312,500
-----------------
Total Call Options (Cost $2,972,500) $562,500
-----------------
PUT OPTIONS (2.95%)
Bristol-Myers Squibb Company
July 1997 $65 1,000 $0
Encad, Inc.
July 1997 $40 285 40,969
In Focus Systems, Inc.
October 1997 $30 85 51,000
S & P 100 Index Put Options
July 1997 $750 1,750 76,562
July 1997 $805 400 105,000
July 1997 $820 650 284,375
July 1997 $825 100 52,500
July 1997 $840 600 510,000
Number of Shares -
Principal Amount
Name of Issuer and Title of Issue of Bonds Value
- ---------------------------------------------- ------------------ -----------------
Put Options (continued)
Contracts
------------------
Xpedite Systems, Inc.
February 1998 $18 922 $257,662
June 1998 $20 822 412,866
Zoltek Companies, Inc.
June 1997 $40 505 157,813
August 1997 $40 280 119,000
-----------------
Total Put Options (Cost $4,475,100) $2,067,747
-----------------
U. S. TREASURY BILLS (20.20%)
7-10-97 to 7-24-97 (Cost $14,158,250) $14,200,000 $14,157,369
-----------------
Total Investments (Cost $60,317,208) 73.35% $51,401,066
Cash Deposits with Broker for Securities Sold Short 31.96% $22,394,699
Liability for 50 NASDQ futures contracts face amount $4,785,375
expiring September 1997 -0.06% $(47,125)
Receivable for 100 Gold futures contracts face amount $3,440,198
expiring August 1997 0.12% $87,198
Liability for 250 Gold futures contracts face amount $8,895,282
expiring October 1997 -0.65% $(452,783)
Receivable from Brokers for Securities Sold Short 20.64% $14,467,684
Securities Sold Short -23.71% ($16,613,674)
Excess of Other Liabilities over Assets -1.65% ($1,156,720)
------------------ -----------------
Net Assets 100.00% $70,080,345
================== =================
<FN>
<F*> Non-income producing
<F#> Dividend in arrears
<Fa> Denotes security is affiliated (See Note 5)
<Fd> $8,300,000 on deposit with custodian bank for securities sold short
<Ff> Denotes security primarily traded in foreign markets
24 See Notes to Financial Statements
25
- -------------------------------------------------------------------------------
LINDNER INVESTMENTS
- -------------------------------------------------------------------------------
SCHEDULES OF INVESTMENTS - JUNE 30, 1997
Number of Shares -
Principal Amount
Name of Issuer and Title of Issue of Bonds Value
- ---------------------------------------------- ------------------ -----------------
LINDNER BULWARK FUND
- --------------------
SCHEDULE OF SECURITIES SOLD SHORT
Action Performance Companies, Inc. 20,800 $504,400
BE Aerospace, Inc. 2,000 63,250
BMC Industries, Inc. 30,000 1,027,500
Boston Chicken, Inc. 6,000 84,000
Chart Industries, Inc. 40,600 1,111,425
Dave & Buster's, Inc. 3,000 80,250
Delta & Pine Land Company 31,332 1,116,202
Eltron International, Inc. 16,600 493,850
In Focus Systems, Inc. 48,700 1,247,937
Just for Feet, Inc. 14,250 248,484
Linens 'n Things, Inc. 24,100 713,963
Miller Industries, Inc. 55,500 888,000
Number of Shares -
Principal Amount
Name of Issuer and Title of Issue of Bonds Value
- ---------------------------------------------- ------------------ -----------------
Orbital Sciences Corporation 5,000 $79,375
Quintiles Transnational Corporation 12,300 856,387
Reliance Steel & Aluminum Company 10,200 265,200
Reptron Electronics, Inc. 44,300 1,063,200
Rykoff-Sexton, Inc. 29,900 697,044
Seattle Filmworks, Inc. 47,000 564,000
Splash Technologies, Inc. 40,500 1,463,063
Sylvan Learning Systems 39,100 1,329,400
Todhunter International, Inc. 47,100 341,475
Ventana Medical Systems, Inc. 40,850 505,519
Volt Information Sciences, Inc. 9,000 454,500
Zoltek Companies, Inc. 37,000 1,415,250
-----------------
$16,613,674
=================
See Notes to Financial Statements 25
26
Performance Summary
For the year ended June 30, the total return for the International Fund was
14.76% compared with the Morgan Stanley EAFE ("Europe-Australasia-Far East")
Index return of 12.8%.
Over the last 12 months the net assets of the Fund have grown from $1.2
million to $4.7 million, as strong performance has both increased the value
of existing holdings and attracted new investors. The number of issues has
been expanded to 60 from 41 holdings in 27 different countries in order to
achieve an appropriate degree of diversification. In selecting holdings, we
look first for companies with market prices below appraised value; industry
participation and geography are secondary considerations.
Much of the Fund's favorable performance resulted from our concentration in
companies in Russia, the country with the heaviest weighting. The leaders of
this formerly government-controlled economy have demonstrated considerable
competence in moving toward a market economy, and the results are beginning
to be evident in the performance of Russian companies. Here and in other
expanding economies, many of our holdings are in energy and utility
companies, which have excellent growth prospects as these nations build
infrastructure. Our second largest geographic concentration is in Canada,
where, as in Russia, we see value in natural resource companies such as
minerals and energy.
Appreciation in the Fund's investments was broadly based with the exception
of Thailand and Malaysia, where markets were generally weak, and gold stocks.
As long as favorable trends in interest rates persist, we will remain
cautiously optimistic that international investors can continue to benefit
from economic growth in most parts of the world.
/s/ Eric E. Ryback /s/ Robert A. Lange
Eric E. Ryback Robert A. Lange
President Portfolio Manager
August 8, 1997
Lindner International Fund
- ------------------------------------------------------------------------------
FUND PROFILE
This fund seeks capital appreciation through investments in common stocks or
convertible securities of companies whose principal business activities are
outside the United States. Income is a secondary objective.
portfolio composition by country
June 30, 1997
[GRAPH]
26
27
- -------------------------------------------------------------------------------
LINDNER INVESTMENTS
- -------------------------------------------------------------------------------
SCHEDULES OF INVESTMENTS - JUNE 30, 1997
Number of
Shares -
Principal
Country Amount
Name of Issuer and Title of Issue of Origin of Bonds Value
- ---------------------------------- --------- -------------- -------------
LINDNER INTERNATIONAL FUND
- --------------------------
COMMON STOCKS (93.06%)
Chemicals and Allied Products
(3.95%)
Energia E Industrias Aragonesas Spain 11,000 $79,282
Vinythai Public Company Limited
<F*> Thailand 790,000 106,736
-------------
$186,018
-------------
Communications (3.26%)
ECI Telecom Ltd. Israel 2,600 $77,350
Vimpel-Communications ADR <F*> Russia 2,000 76,000
-------------
$153,350
-------------
Computers and Electronic Equipment
(1.78%)
Southern Electronics Corporation<F*> United States 6,500 $83,687
-------------
Construction and Real Estate (9.56%)
Asas Dunia Berhad Malaysia 23,000 $74,267
Blagovno Trgovinski Center - GDR -
Rule 144A <F*> Slovenia 12,500 123,125
Mostostal Export Corporation - ADR Poland 25,000 79,000
Pernas International Holdings
Berhad Malaysia 90,000 74,881
Tipco Asphalt Public Company Ltd. Thailand 19,000 99,016
-------------
$450,289
-------------
Diversified Industrial (1.63%)
Mitsubishi Heavy Industries, Ltd. Japan 5,000 $38,408
Westmont Industries Berhad Malaysia 40,000 38,352
-------------
$76,760
-------------
Number of
Shares -
Principal
Country Amount
Name of Issuer and Title of Issue of Origin of Bonds Value
- ---------------------------------- --------- -------------- -------------
Energy (8.49%)
Bitech Petroleum Corporation
Common <F*> Canada 59,068 $117,751
Warrants, expiring 8/31/97 <F*> Canada 400,000 0
Canadian Occidental Petroleum Ltd. Canada 3,500 78,750
Lukoil Oil Company -
ADR <F*> Russia 200 15,550
MOL Magyar Olajes -
Gazipari Rt. Hungary 3,000 66,522
Rao Gazprom - ADR -
Rule 144A <F*> Russia 2,500 42,969
Sasol Ltd. - ADR South Africa 6,000 78,000
-------------
$399,542
-------------
Financial Services (10.57%)
Banque Libanaise pour le Commerce
SAL - GDR - Rule 144A <F*> Lebanon 3,985 $82,689
Banque Morocaine du Commerce
Exterieur - GDR <F*> Morocco 4,700 90,475
Calalana Occidente SA <F*> Spain 1,333 66,528
Cie Financiere de Paribas France 800 55,324
Misr International Bank (S.A.E.) -
GDR - Rule 144A <F*> Egypt 5,700 96,615
Sphere Drake Holdings, Ltd. Bermuda 2,000 17,125
Vilniaus Bankas AB GDR - Reg S Lithuania 1,500 89,250
-------------
$498,006
-------------
See Notes to Financial Statements 27
28
- -------------------------------------------------------------------------------
LINDNER INVESTMENTS
- -------------------------------------------------------------------------------
SCHEDULES OF INVESTMENTS - JUNE 30, 1997
Number of
Shares -
Principal
Country Amount
Name of Issuer and Title of Issue of Origin of Bonds Value
- ---------------------------------- --------- -------------- -------------
LINDNER INTERNATIONAL FUND
- --------------------------
Food and Beverage (1.76%)
Danone Group France 200 $33,078
Foster's Brewing Group, Ltd. Australia 8,000 14,744
Kirin Beverage Corporation Japan 2,000 34,956
-------------
$82,778
-------------
Industrial Products and Services
(14.56%)
Asia Cement Company - GDR Taiwan 1,280 $20,259
Bridgestone Corporation Japan 1,000 23,246
Buderus AG Germany 100 55,093
Construcciones y Aux de Ferr Spain 1,900 85,911
FAG Kugelfischer Gerog Schafer AG Germany 3,800 70,766
IWKA AG Germany 125 36,370
Radiotronica, S.A. <F*> Spain 6,700 128,925
Vitro, Sociedad Anonima <F*> Mexico 12,300 138,375
Willbros Group, Inc. <F*> Panama 8,000 127,000
-------------
$685,945
-------------
Leisure & Entertainment (3.78%)
Art Vivant Co., Ltd Japan 3,000 $97,002
Grupo Anaya SA Spain 3,100 60,706
Matsushita Electric Industrial
Co., Ltd. Japan 1,000 20,187
-------------
$177,895
-------------
Metals Processing (1.52%)
Zindart Limited - ADR <F*> Hong Kong 7,000 $71,750
-------------
Mining (10.30%)
AUR Resources, Inc. <F*> Canada 11,000 $49,438
Ashanti Goldfields Company Ltd. Australia 1,200 13,710
Gold Reserve Corporation <F*> Canada 7,400 59,007
IAMGOLD International African
Mining Gold Corporation <F*> Canada 24,000 93,947
Inmet Mining Corporation <F*> Canada 15,000 82,639
Number of
Shares -
Principal
Country Amount
Name of Issuer and Title of Issue of Origin of Bonds Value
- ---------------------------------- --------- -------------- -------------
Mining (continued)
Meridian Gold, Inc. <F*> Canada 10,000 $43,750
North Ltd. Australia 25,000 94,583
Vaal Reefs Exploration and Mining
Company Ltd. South Africa 10,000 48,125
-------------
$485,199
-------------
Retail Trade (1.67%)
Shisagae Department Store South Korea 2,000 $78,829
-------------
Transportation (4.52%)
Guangshen Railway Company Ltd. China 260,000 $114,106
Transportacion Maritima Mexicana -
ADR Mexico 16,000 99,000
-------------
$213,106
-------------
Utilities (Gas, Electric & Water)
(12.72%)
Canadian 88 Energy Corporation
<F*> Canada 14,000 $56,832
Hidroelectrica del Cantabrico,
S.A. Spain 1,800 73,190
Huaneng Power International, Inc.
- ADR <F*> China 3,500 89,250
Irkutskenergo - ADR Russia 6,500 112,125
Korea Electric Power Company ADR South Korea 4,000 74,750
Mosenergo - GDR -
Rule 144A <F*> Russia 1,900 79,800
Unified Energy Systems -
Reg S ADR <F*> Russia 3,130 113,462
-------------
$599,409
-------------
Miscellaneous (2.99%) $140,887
-------------
Total Common Stocks (Cost $3,899,501) $4,383,450
-------------
28 See Notes to Financial Statements
29
- -------------------------------------------------------------------------------
LINDNER INVESTMENTS
- -------------------------------------------------------------------------------
SCHEDULES OF INVESTMENTS - JUNE 30, 1997
Number of
Shares -
Principal
Country Amount
Name of Issuer and Title of Issue of Origin of Bonds Value
- ---------------------------------- --------- -------------- -------------
LINDNER INTERNATIONAL FUND
- --------------------------
PREFERRED STOCKS (0.06%)
Mining (0.06%)
Ashanti Goldfields Company Ltd.,
$.648 Ghana 1,200 $3,000
-------------
Total Preferred Stocks (Cost $0) $3,000
-------------
CONVERTIBLE BONDS (0.34%)
Mining (0.34%)
Anvil Range Mining
Corporation, 8.5%, due 2002 Canada $25,000 $16,242
-------------
Total Convertible Bonds (Cost $18,343) $16,242
-------------
Number of
Shares -
Principal
Country Amount
Name of Issuer and Title of Issue of Origin of Bonds Value
- ---------------------------------- --------- -------------- -------------
U.S. TREASURY BILLS (4.24%)
U.S. Treasury Bills, maturing
07-03-97 to 07-10-97 ($199,870) $200,000 $199,855
-------------
Total Investments (Cost $4,117,714) 97.70% $4,602,547
Excess of Other Assets over
Liabilities 2.30% $108,230
------------ -------------
Net Assets 100.00% $4,710,777
============ =============
<FN>
<F*> Non-income producing
ADR American Depository Receipts
GDR Global Depository Receipts
Reg S - Regulation S
See Notes to Financial Statements 29
30
- -------------------------------------------------------------------------------
LINDNER INVESTMENTS
- -------------------------------------------------------------------------------
STATEMENTS OF OPERATIONS
FOR THE YEAR ENDED JUNE 30, 1997
LINDNER DIVIDEND
LINDNER GROWTH FUND FUND
---------------------- --------------------
INVESTMENT INCOME
Income:
Dividends
Unaffiliated issuers (net of withholding
taxes of $178,869, $514,392, $374,
$499, $2,144 and $3,866 respectively) $11,656,803 $78,359,578
Affiliated issuers (Non-controlled) (net
of withholding taxes of $21,839 for
Lindner Growth Fund) 2,823,480 727,891
Amortization 5,479,798 10,893,029
Interest 6,034,277 50,474,268
---------------------- --------------------
Total income 25,994,358 140,454,766
---------------------- --------------------
Expenses:
Management fees (Note 3) 4,861,169 11,332,992
Registration and regulatory fees 48,327 70,938
Dividend expense - short sales -- 221,958
Professional fees 90,119 128,353
Custodian fees 271,022 207,014
Transfer agent fees (Note 3) 510,352 746,243
Organizational expense (Note 4) -- --
Other expenses 475,229 698,101
12b-1 fees - Institutional shares 66 2,158
Expenses reimbursed by advisor -- --
---------------------- --------------------
Total expenses 6,256,284 13,407,757
Fees paid indirectly (Note 6) (53,816) (81,076)
---------------------- --------------------
Net expenses 6,202,468 13,326,681
---------------------- --------------------
Net investment income/(loss) 19,791,890 127,128,085
---------------------- --------------------
REALIZED AND UNREALIZED GAIN (LOSS) FROM
INVESTMENTS AND FOREIGN CURRENCY
TRANSACTIONS:
Net realized gain on investments of
unaffiliated issuers 127,716,487 140,955,046
Net realized gain on investments of
affiliated issuers (Non-controlled) 36,649,095 86,089
Net realized gain (loss) on securities sold
short -- 1,416,968
Net realized loss on option transactions -- --
Net realized loss on foreign currency
transactions (15,282) (1,153)
---------------------- --------------------
Net realized gain (loss) on investments and
foreign currency transactions 164,350,300 142,456,950
---------------------- --------------------
Change in unrealized appreciation on
investments (10,308,143) (87,193,197)
Net unrealized depreciation on securities
sold short -- (767,768)
Net unrealized depreciation on options -- --
Net unrealized appreciation (depreciation)
on translation of assets and liabilities
in foreign currencies (887) (533)
---------------------- --------------------
Net unrealized appreciation (depreciation)
on investments and translation of assets
and liabilities in foreign currencies (10,309,030) (87,961,498)
---------------------- --------------------
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS $173,833,160 $181,623,537
====================== ====================
30 See Notes to Financial Statements
31
- -------------------------------------------------------------------------------
LINDNER INVESTMENTS
- -------------------------------------------------------------------------------
STATEMENTS OF OPERATIONS
FOR THE YEAR ENDED JUNE 30, 1997
LINDNER/RYBACK LINDNER
LINDNER UTILITY FUND SMALL-CAP FUND LINDNER BULWARK FUND INTERNATIONAL FUND
-------------------- -------------------- -------------------- ------------------
INVESTMENT INCOME
Income:
Dividends
Unaffiliated issuers (net of withholding
taxes of $178,869, $514,392, $374,
$499, $2,144 and $3,866 respectively) $1,175,226 $ 120,402 $ 1,541,305 $ 34,383
Affiliated issuers (Non-controlled) (net
of withholding taxes of $21,839 for
Lindner Growth Fund) -- -- -- --
Amortization 77,954 103,405 719,475 11,339
Interest 177,025 -- 1,734,114 1,873
---------- ---------- ------------ --------
Total income 1,430,205 223,807 3,994,894 47,595
---------- ---------- ------------ --------
Expenses:
Management fees (Note 3) 271,898 110,953 805,475 25,886
Registration and regulatory fees 17,235 13,042 17,922 9,897
Dividend expense - short sales -- -- 34,775 --
Professional fees 2,945 1,013 8,909 314
Custodian fees 4,168 1,372 7,509 6,182
Transfer agent fees (Note 3) 22,580 8,287 26,395 2,819
Organizational expense (Note 4) 6,566 5,917 12,742 7,278
Other expenses 19,470 11,051 23,998 2,661
12b-1 fees - Institutional shares 117 -- 3,276 --
Expenses reimbursed by advisor -- -- -- (3,860)
---------- ---------- ------------ --------
Total expenses 344,979 151,635 941,001 51,177
Fees paid indirectly (Note 6) (1,456) (661) (2,325) (57)
---------- ---------- ------------ --------
Net expenses 343,523 150,974 938,676 51,120
---------- ---------- ------------ --------
Net investment income/(loss) 1,086,682 72,833 3,056,218 (3,525)
---------- ---------- ------------ --------
REALIZED AND UNREALIZED GAIN (LOSS) FROM
INVESTMENTS AND FOREIGN CURRENCY
TRANSACTIONS:
Net realized gain on investments of
unaffiliated issuers 2,371,490 1,324,888 16,142,828 84,935
Net realized gain on investments of
affiliated issuers (Non-controlled) -- -- -- --
Net realized gain (loss) on securities sold
short -- -- (69,478) --
Net realized loss on option transactions -- -- (16,438,092) --
Net realized loss on foreign currency
transactions (419) -- (1,353) (278)
---------- ---------- ------------ --------
Net realized gain (loss) on investments and
foreign currency transactions 2,371,071 1,324,888 (366,095) 84,657
---------- ---------- ------------ --------
Change in unrealized appreciation on
investments 1,512,780 2,624,124 (13,393,035) 391,636
Net unrealized depreciation on securities
sold short -- -- (2,692,124) --
Net unrealized depreciation on options -- -- (4,817,353) --
Net unrealized appreciation (depreciation)
on translation of assets and liabilities
in foreign currencies 1 -- (194) (59)
---------- ---------- ------------ --------
Net unrealized appreciation (depreciation)
on investments and translation of assets
and liabilities in foreign currencies 1,512,781 2,624,124 (20,902,706) 391,577
---------- ---------- ------------ --------
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS $4,970,534 $4,021,845 $(18,212,583) $472,709
========== ========== ============ ========
See Notes to Financial Statements 31
32
- -------------------------------------------------------------------------------
LINDNER INVESTMENTS
- -------------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEAR ENDED JUNE 30, 1997
AND THE YEAR ENDED JUNE 30, 1996
LINDNER GROWTH FUND LINDNER DIVIDEND FUND
---------------------------------- ----------------------------------
June 30, June 30, June 30, June 30,
1997 1996 1997 1996
---------------------------------- ----------------------------------
INCREASE (DECREASE) IN NET ASSETS:
OPERATIONS:
Net investment income (loss) $19,791,890 $21,998,188 $127,128,085 $139,276,377
Net realized gain (loss) on
investments and foreign
currency transactions 164,350,300 193,157,135 142,456,950 69,705,849
Net increase (decrease) in
unrealized appreciation on
investments and translation
of assets and liabilities in
foreign currencies (10,309,030) 66,478,515 (87,961,498) 103,169,388
---------------- ---------------- ---------------- ----------------
Net Increase (Decrease) in Net
Assets $173,833,160 $281,633,838 $181,623,537 $312,151,614
---------------- ---------------- ---------------- ----------------
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income:
Investors shares ($20,932,704) ($27,562,263) ($131,109,911) ($138,030,345)
Institutional shares (235) -- (64,347) --
From net realized gain on
investments and foreign
currency transactions:
Investors shares (166,339,554) (78,994,844) (62,624,754) 17,445,338
Institutional shares (1,972) -- (10,487) --
---------------- ---------------- ---------------- ----------------
Net decrease in net assets from
distributions to shareholders ($187,274,465) ($106,557,107) ($193,809,499) ($155,475,683)
---------------- ---------------- ---------------- ----------------
FUND SHARE TRANSACTIONS (NOTE 7:)
Investors shares $62,327,472 ($175,166,676) ($263,821,666) $233,337,062
Institutional shares 95,895 -- 1,979,699 --
---------------- ---------------- ---------------- ----------------
Net Increase (Decrease) in Fund
Share Transactions 62,423,367 (175,166,676) (261,841,967) 233,337,062
---------------- ---------------- ---------------- ----------------
TOTAL INCREASE (DECREASE) IN NET
ASSETS $48,982,062 ($89,945) ($274,027,929) $390,012,993
Net Assets at the Beginning of the
Period $1,446,094,329 $1,446,184,274 $2,292,933,462 $1,902,920,469
---------------- ---------------- ---------------- ----------------
Net Assets at the End of the Period $1,495,076,391 $1,446,094,329 $2,018,905,533 $2,292,933,462
================ ================ ================ ================
Undistributed Net Investment Income
(Loss) Included in Net Assets at
the End of the Period $9,710,325 $10,851,374 ($1,805,630) $2,240,544
================ ================ ================ ================
32 See Notes to Financial Statements
33
- -------------------------------------------------------------------------------
LINDNER INVESTMENTS
- -------------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEAR ENDED JUNE 30, 1997
AND THE YEAR ENDED JUNE 30, 1996
LINDNER/RYBACK
LINDNER UTILITY FUND SMALL-CAP FUND
---------------------------------- ----------------------------------
June 30, June 30, June 30, June 30,
1997 1996 1997 1996
---------------------------------- ----------------------------------
INCREASE (DECREASE) IN NET ASSETS:
OPERATIONS:
Net investment income (loss) $1,086,682 $674,643 $72,833 ($3,065)
Net realized gain (loss) on
investments and foreign
currency transactions 2,371,071 3,104,248 1,324,888 (206,452)
Net increase (decrease) in
unrealized appreciation on
investments and translation
of assets and liabilities in
foreign currencies 1,512,781 3,009,888 2,624,124 1,871,886
---------------- ---------------- ---------------- ----------------
Net Increase (Decrease) in Net
Assets $4,970,534 $6,788,779 $4,021,845 $1,662,369
---------------- ---------------- ---------------- ----------------
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income:
Investors shares ($1,156,654) (631,299) (26,731) --
Institutional shares (2,247) -- -- --
From net realized gain on
investments and foreign
currency transactions:
Investors shares (36,612) -- -- ($981,949)
Institutional shares (246) -- -- --
---------------- ---------------- ---------------- ----------------
Net decrease in net assets from
distributions to shareholders ($1,195,759) ($631,299) ($26,731) ($981,949)
---------------- ---------------- ---------------- ----------------
FUND SHARE TRANSACTIONS (NOTE 7:)
Investors shares $10,645,924 $8,559,763 $10,705,810 $1,561,514
Institutional shares 44,337 -- 150 --
---------------- ---------------- ---------------- ----------------
Net Increase (Decrease) in Fund
Share Transactions 10,690,261 8,559,763 10,705,960 1,561,514
---------------- ---------------- ---------------- ----------------
TOTAL INCREASE (DECREASE) IN NET
ASSETS $14,465,036 $14,717,243 $14,701,074 $2,241,934
Net Assets at the Beginning of the
Period $32,298,880 $17,581,637 $10,109,289 $7,867,355
---------------- ---------------- ---------------- ----------------
Net Assets at the End of the Period $46,763,916 $32,298,880 $24,810,363 $10,109,289
================ ================ ================ ================
Undistributed Net Investment Income
(Loss) Included in Net Assets at
the End of the Period $31,617 $103,836 $5,434 ($40,668)
================ ================ ================ ================
LINDNER BULWARK FUND LINDNER INTERNATIONAL FUND
---------------------------------- ----------------------------------
June 30, June 30, June 30, June 30,
1997 1996 1997 1996
---------------------------------- ----------------------------------
INCREASE (DECREASE) IN NET ASSETS:
OPERATIONS:
Net investment income (loss) $3,056,218 $1,085,530 ($3,525) $334
Net realized gain (loss) on
investments and foreign
currency transactions (366,095) (2,627,863) 84,657 27,092
Net increase (decrease) in
unrealized appreciation on
investments and translation
of assets and liabilities in
foreign currencies (20,902,706) 6,273,469 391,577 93,217
---------------- ---------------- ---------------- ---------------
Net Increase (Decrease) in Net
Assets ($18,212,583) $4,731,136 $472,709 $120,643
---------------- ---------------- ---------------- ---------------
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income:
Investors shares ($1,311,535) ($1,664,244) ($281) ($2,124)
Institutional shares (28,351) -- -- --
From net realized gain on
investments and foreign
currency transactions:
Investors shares -- -- (27,129) (11)
Institutional shares -- -- (2) --
---------------- ---------------- ---------------- ---------------
Net decrease in net assets from
distributions to shareholders ($1,339,886) ($1,664,244) ($27,412) ($2,135)
---------------- ---------------- ---------------- ---------------
FUND SHARE TRANSACTIONS (NOTE 7:)
Investors shares $25,436,861 ($5,859,516) $3,063,117 $788,346
Institutional shares 1,938,107 -- 383 --
---------------- ---------------- ---------------- ---------------
Net Increase (Decrease) in Fund
Share Transactions 27,374,968 (5,859,516) 3,063,500 788,346
---------------- ---------------- ---------------- ---------------
TOTAL INCREASE (DECREASE) IN NET
ASSETS $7,822,499 ($2,792,624) $3,508,797 $906,854
Net Assets at the Beginning of the
Period $62,257,846 $65,050,470 $1,201,980 $295,126
---------------- ---------------- ---------------- ---------------
Net Assets at the End of the Period $70,080,345 $62,257,846 $4,710,777 $1,201,980
================ ================ ================ ===============
Undistributed Net Investment Income
(Loss) Included in Net Assets at
the End of the Period $2,224,739 $508,405 ($3,480) $327
================ ================ ================ ===============
See Notes to Financial Statements 33
34
- -------------------------------------------------------------------------------
LINDNER INVESTMENTS
- -------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS
1. Organization and Significant Accounting Policies
Lindner Investments, a Massachusetts business trust (the "Funds"), is
registered under the Investment Company Act of 1940, as amended, as an
open-end management investment company. Six series of shares are currently
issued: (1) Lindner Growth Fund, (2) Lindner Dividend Fund, (3) Lindner
Utility Fund, (4) Lindner/Ryback Small-Cap Fund, (5) Lindner Bulwark Fund,
and (6) Lindner International Fund. The Funds offer both Investor and
Institutional classes of shares. Investor shares are sold without a 12b-1
fee. Institutional shares are sold with a 12b-1 fee. Institutional shares
sold have their own distribution/administrative service plan and certain
expenses are directly allocated to that class.
The following is a summary of significant accounting policies followed by
the Funds.
Security Valuation
Investments in securities traded on a national securities exchange or
in the NASDAQ Stock Market are valued at the last reported sales price
as of the close of the New York Stock Exchange; securities traded in
the over-the-counter market and listed securities for which no sale was
reported on the day are valued at the mean between the last reported
bid and asked prices. The value of foreign securities is converted into
U.S. dollars at the rate of exchange prevailing on the valuation date.
When market quotes are not readily available, such securities are
valued at fair value as determined in good faith by the Board of
Trustees.
Foreign Currency Translation
The books and records of the Funds are maintained in U.S. dollars as
follows: (1) the foreign currency market value of investment securities
is translated at the current exchange rates; and (2) purchases, sales,
income, and expenses are translated at the rate of exchange prevailing
on the respective dates of such transactions.
Reported net realized foreign currency gains or losses arise from
currency gains or losses realized between the trade and settlement
dates on securities transactions, the difference between the amounts of
dividends, interest, and foreign withholding taxes recorded on the
Funds' books, and the U.S. dollar equivalent of the amounts actually
received or paid. Net unrealized foreign currency gains or losses arise
from changes in the value of assets and liabilities other than
investments in securities, resulting from changes in the exchange rate.
Income Taxes
It is the Funds' policy to comply with the requirements of the Internal
Revenue Code applicable to regulated investment companies and to
distribute all of its taxable income to its shareholders. Therefore, no
federal income tax provision is required.
Short Sales
The Lindner Bulwark series may invest in short sales of securities in
order to profit from declines in stock prices. When a Fund engages in a
short sale, an amount equal to the proceeds received by the Fund is
reflected as an asset and equivalent liability. The amount of the
liability is subsequently marked to market to reflect the market value
of the short sale. The Fund maintains a segregated account of
securities and cash as collateral for the short sales. The Fund is
exposed to market risk based on the amount, if any, that the market
value of the stock exceeds the proceeds received. Other Funds 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").
34
35
- -------------------------------------------------------------------------------
LINDNER INVESTMENTS
- -------------------------------------------------------------------------------
1. Organization and Significant Accounting Policies (continued)
Use of Management Estimates
The preparation of financial statements in conformity with generally
accepted accounting principles requires that management make certain
estimates and assumptions that affect the reported amounts of assets
and liabilities and disclosure of contingent assets and liabilities at
the date of the financial statements. The reported amounts of revenues
and expenses during the reporting period may also be affected by the
estimates and assumptions management is required to make. Actual
results may differ from those estimates.
Allocation of Income, Expenses and Gains and Losses
The Funds allocate income, expenses (other than class specific
expenses) and gains and losses daily to each class of shares based upon
the relative proportion of shares represented by each class. Operating
expenses directly attributable to a specific class are charged against
the operation of that class.
Other
The Funds follow industry practice and record security transactions on
the trade date. Dividend income is recognized on the ex-dividend date,
except that certain dividends from foreign securities are recorded as
soon as the Funds are informed of the ex-dividend date. Interest income
is recognized on an accrual basis. Dividend and interest income is
recorded net of foreign taxes where recovery of such taxes is not
assured. Premiums and discounts, if any, on securities purchases are
amortized over the life of the respective securities. Distributions to
shareholders are recorded on the ex-dividend date.
2. Investment Transactions
For the year ended June 30, 1997, aggregate purchases and sales of
investment securities, other than options, securities sold short, and
short-term obligations were as follows:
- ------------------------------------------------------------------------------------------------
Purchases Sales
--------- -----
LINDNER GROWTH FUND $502,927,871 $ 657,901,274
LINDNER DIVIDEND FUND 834,794,524 1,350,983,238
LINDNER UTILITY FUND 42,054,719 32,075,758
LINDNER/RYBACK
SMALL-CAP FUND 15,824,476 6,806,212
LINDNER BULWARK FUND 235,030,034 237,219,712
LINDNER INTERNATIONAL FUND 3,719,988 633,207
- ------------------------------------------------------------------------------------------------
For the year ended June 30, 1997, aggregate purchases and sales of U.S.
Government securities were as follows:
- ------------------------------------------------------------------------------------------------
Purchases Sales
--------- -----
LINDNER GROWTH FUND $1,123,138,935 $1,099,159,113
LINDNER DIVIDEND FUND 1,216,759,221 1,145,513,743
LINDNER UTILITY FUND 35,768,196 36,541,377
LINDNER/RYBACK
SMALL-CAP FUND 35,087,946 32,893,940
LINDNER BULWARK FUND 275,449,504 282,682,104
LINDNER INTERNATIONAL FUND 6,284,801 6,196,113
- ------------------------------------------------------------------------------------------------
35
36
- -------------------------------------------------------------------------------
LINDNER INVESTMENTS
- -------------------------------------------------------------------------------
2. Investment Transactions (continued)
For the year ended June 30, 1997, aggregate purchases and sales of options
in the Lindner Bulwark Fund were $53,323,588 and $32,745,197, respectively.
For the year ended June 30, 1997, the cost of investments purchased to
cover short sales and the proceeds from investments sold short were as
follows:
- ------------------------------------------------------------------------------------------------
Short Sales Covers
----------- ------
LINDNER DIVIDEND FUND $ 5,531,873 $ 1,348,675
LINDNER BULWARK FUND 49,807,330 48,421,320
- ------------------------------------------------------------------------------------------------
On June 30, 1997, the composition of unrealized appreciation and
(depreciation) of investment securities based on the aggregate cost of
investments for federal income tax purposes was as follows:
- -------------------------------------------------------------------------------------------------------------
Appreciation (Depreciation) Net Federal Tax Cost
------------ -------------- ------------ ----------------
LINDNER GROWTH FUND $423,054,986 $ (98,300,604) $324,754,382 $ 1,952,971,979
LINDNER DIVIDEND FUND 176,395,659 (132,588,086) 43,807,573 1,947,535,027
LINDNER UTILITY FUND 7,181,419 (1,581,401) 5,600,018 39,723,776
LINDNER/RYBACK
SMALL-CAP FUND 4,591,080 (222,331) 4,368,750 20,581,466
LINDNER BULWARK FUND 2,121,067 (14,141,172) (12,020,102) 47,064,494
LINDNER INTERNATIONAL FUND 740,152 (255,319) 484,833 4,117,714
- -------------------------------------------------------------------------------------------------------------
3. Fees and Other Transactions with Affiliates
The management fee for Lindner Growth Fund series is payable to Ryback
Management (the "Adviser") (before reimbursement of expenses to the
Funds, if any) at the annual rate of .7% of average net assets up to $50
million, .6% of the next $350 million and .5% of the excess over $400
million. Depending on Lindner Growth Fund's performance compared to the S&P
500 Composite Index, the fee may be increased or decreased by up to .2%.
For the year ended June 30, 1997, the Lindner Growth Fund under performed
the S&P. Accordingly, the basic Advisor's fee of $7,800,529 was reduced by
a performance penalty of .2% of average net assets, or $2,939,360. This
resulted in a net Advisor's fee of $4,861,169.
The management fee for Lindner Dividend Fund series is payable quarterly to
the Adviser (before reimbursement of expenses to the Funds, if any) at the
annual rate of .7% of average net assets up to $50 million, .6% of the next
$150 million and .5% of the excess over $200 million.
The management fee is payable monthly to the Adviser by Lindner Utility
Fund and Lindner/Ryback Small-Cap Fund according to the following annual
percentage rate of daily net asset values averaged monthly (before
reimbursement of expenses to the Funds, if any) of each of the Funds: .7%
on the first $50,000,000, .6% on the next $150,000,000 and .5% of the
excess of $200,000,000.
The management fee from Lindner Bulwark Fund and Lindner International Fund
is payable monthly to the Adviser at the annual percentage rate of 1% of
daily net asset values averaged monthly (before reimbursement of expenses
to the Funds, if any) of each of the Funds.
Annual operating and management expenses for the Lindner Growth Fund and
Lindner Dividend Fund, excluding taxes and interest, may not exceed 1.5% of
the first $30 million of average net assets plus 1% of average net assets
in excess of $30 million of the respective funds.
36
37
- -------------------------------------------------------------------------------
LINDNER INVESTMENTS
- -------------------------------------------------------------------------------
3. Fees and Other Transactions with Affiliates (continued)
Annual operating and management expenses for the Lindner Utility Fund,
Lindner/Ryback Small-Cap Fund, Lindner Bulwark Fund, and Lindner
International Fund, excluding taxes and interest, may not exceed the most
stringent limitation imposed by state law on expense limitations in a state
in which the Funds' shares are qualified for sale. For the year ended June
30, 1997, the Advisor reimbursed Lindner International Fund $3,860.
Ryback Management Corporation, acting as stock transfer agent and dividend
disbursing agent for the Funds, is compensated at a rate of 75 cents per
shareholder account per month. During the year ended June 30, 1997, the
following transfer agent fees were paid to Ryback Management Corporation:
Lindner Growth Fund ($468,020), Lindner Dividend Fund ($680,117), Lindner
Utility Fund ($20,099), Lindner/Ryback Small-Cap Fund ($7,159), Lindner
Bulwark Fund ($23,692), and Lindner International Fund ($2,190).
Certain officers and directors of the Funds are affiliated with Ryback
Management Corporation.
4. Organizational Expense
The following is a schedule of expenses in connection with the organization
and registration of the Funds which are being amortized and reimbursed to
the Adviser on a straight line basis over a period of five years:
- -------------------------------------------------------------------------------------------------------------
Original Accumulated 1997
Expense Amortization Expense
-------- ------------ -------
LINDNER UTILITY FUND $32,377 $24,557 $ 6,566
LINDNER/RYBACK
SMALL-CAP FUND 29,182 20,311 5,917
LINDNER BULWARK FUND 62,831 43,079 12,742
LINDNER INTERNATIONAL FUND 35,889 18,185 7,278
- -------------------------------------------------------------------------------------------------------------
Any redemption by the shareholders of the Adviser of their initial
investment in Lindner Utility Fund of $100,000 will reduce the
reimbursement by a pro rata portion of any of the then unamortized
expenses.
5. Transactions with Affiliates
Issuers of whose voting stock the Funds own more than 5% but less than 25%
are classified as "affiliates (Non-controlled"). Following is an analysis
of transactions for the year ended June 30, 1997, with "affiliated
companies" as defined by the Investment Company Act of 1940:
Gain (Loss)
Realized
Dividend on Sale
Security Name Activity Income of Shares
- -------------------- --------------------------------------------------------------- ---------- -----------
Value at Purchases, Sales, Value
Beginning of Additions Reductions at End of
Period at Cost at Cost Period
------------ ------------ ------------ ------------
LINDNER GROWTH FUND
7th Level, Inc. <F++> $ 2,584,855 $ 158,060 $ 2,800,746 $ 36,165
Acordia, Inc. $ 34,384,500 1,714,559 25,400,196 0 $ 204,460 5,337,054
AlarmGuard Holdings
(formerly Triton
Group Ltd) <F++> 1,003,275 3,371,049
Alliant Techsystems,
Inc. 40,527,500 234,675 47,575,000
Allied Healthcare
Products, Inc. <F#> 3,269,306 4,258,800
American Media,
Inc., Class A 11,813,025 2,075,349 135,375 18,248,300 32,369
37
38
- -------------------------------------------------------------------------------
LINDNER INVESTMENTS
- -------------------------------------------------------------------------------
Gain (Loss)
Realized
Dividend on Sale
Security Name Activity Income of Shares
- -------------------- --------------------------------------------------------------- ---------- -----------
Value at Purchases, Sales, Value
Beginning of Additions Reductions at End of
Period at Cost at Cost Period
------------ ------------ ------------ ------------
LINDNER GROWTH FUND
(CONTINUED)
Anvil Range Mining $ 5,324,326 $ 1,970,968
Atlantic Realty
Trust 2,418,382 $ 204,755 $ 204,755 0 $ 120,066 $ 3,326,304
Autoinfo, Inc. 2,228,125 927,023 1,123,688 (282,229)
Bancfirst
Corporation 7,056,300 1,047,000 <F##> 116,516 932,821
Bitech Petroleum
Corporation - Rule
144A <F++> 3,062,787 3,986,952
Buffton Corporation <F++> 1,373,817 1,127,250
Butler Manufacturing
Company 14,850,000 2,163,681 <F##> 134,400 4,552,857
Canyon Resources
Corporation <F++> 6,380,825 5,807,100
Cardiometrics, Inc. <F++> 3,193,365 306,097 4,742,419 220,733
Centigram
Communications 10,175,875 11,168,910 0 (2,409,479)
Charming Shoppes,
Inc. 40,213,875 13,405,580 43,446,721
Chempower, Inc. 2,843,750 2,290,938 0 1,739,063
CML Group, Inc. <F++> 8,970,423 5,113,606 18,598
The Coast
Distribution
Company <F++> 1,820,029 1,690,875
Community Financial
Corporation 2,448,500 899,750 0 15,340 1,542,290
Comprehensive Care
Corporation
Common stock 119,250 918,777 1,054,278 0 152,668
Common stock -
Rule 144A 1,875,000 3,031,250
CPI Corporation <F#> 11,347,759 20,099,100 444,892
Dayton Mining
Corporation 16,427,622 5,360,713 1,836,140 9,086,075 1,466,608
Durakon Industries,
Inc. 6,945,412 625,000 7,561,065 <F##> (3,172,373)
Eagle Point Software
Corporation <F++> 937,500 1,140,625
EMCON <F#> 930,208 732,756 1,803,425 8,313
Eskimo Pie
Corporation <F++> 2,513,125 2,970,625 36,750
Fiberstars, Inc. <F++> 1,727,599 1,638,488
Gateway Industries,
Inc. <F++> 747,786 661,968
General Magic, Inc. <F++> 2,059,120 3,252,800
The Good Guys, Inc. <F++> 8,151,074 6,737,625
Gradco Systems, Inc. 3,075,625 13,215 3,618,250
Handleman Company 14,242,937 8,083,678 20,503,275
Health Images, Inc. 12,452,700 115,617 5,593,860 0 33,552 9,901,872
Hilb, Rogal and
Hamilton Company 11,793,750 1,981,292 17,000,000 606,150
International
Bancshares
Corporation <F#> 660,053 25,515,765 195,336
London & Overseas
Freighters Ltd. -
ADR 5,296,844 5,702,344
Maynard Oil Company 2,109,375 3,624,819 74,925 7,925,125 151,327
Metricom, Inc. 20,734,875 400,743 8,580,750
Micronics Computers,
Inc. 3,476,544 284,671 4,011,569 (120,876)
MFRI, Inc. 2,429,625 3,239,500
MK Gold Company <F++> 2,447,759 1,883,906 2,826,875 (992,756)
The Morningstar
Group, Inc. 16,177,975 4,089,875 5,128,250 26,878,125 12,298,012
MTL, Inc. 5,737,500 2,553,900 <F##> 1,366,144
National Insurance
Group 2,800,800 3,149,921 0 93,872
Noodle Kidoodle,
Inc. <F#> 1,026,862 2,302,125
OMI, Inc. 19,357,950 1,273,516 23,189,063
Puerto Rican Cement
Company 9,813,712 5,026,796 0 107,202 3,927,425
Quixote Corporation 3,388,500 1,821,831 5,636,000 162,637
Ramco-Gershenson
Properties Trust 8,951,637 517,587 9,574,341 284,647 103,814
Recycling
Industries, Inc. <F++> 2,637,359 1,937,500
Rightchoice Managed
Care, Inc. <F++> 3,464,526 3,515,400
Rose's Stores, Inc. <F++> 1,680,287 1,139,506
Scientific
Software-Intercomp,
Inc. 1,449,000 31,388 412,212
38
39
- -------------------------------------------------------------------------------
LINDNER INVESTMENTS
- -------------------------------------------------------------------------------
Gain (Loss)
Realized
Dividend on Sale
Security Name Activity Income of Shares
- -------------------- --------------------------------------------------------------- ---------- -----------
Value at Purchases, Sales, Value
Beginning of Additions Reductions at End of
Period at Cost at Cost Period
------------ ------------ ------------ ------------
LINDNER GROWTH FUND
(CONTINUED)
South American Gold
and Copper Company
Ltd. <F++> $ 990,468 $ 447,626
Spaghetti Warehouse,
Inc. $ 2,015,087 936,210 $ 28,740 3,377,400 $ 1,019
Stewart Information
Services
Corporation 7,647,500 5,965,196 0 $ 82,800 3,509,487
Streamlogic
Corporation
(formerly
Micropolis Corp.) <F#> 2,838,914 7,136,165 0 (7,053,073)
Summit Medical
Systems, Inc. <F++> 1,673,588 1,553,200
Superior Surgical
Mfg. Co. Inc. <F++> 6,073,950 5,792,750 63,503
Tanknology
Environmental,
Inc. 3,228,197 1,708 2,566,680
Transtechnology
Corporation <F#> 1,280,500 6,825,000 72,878
Triton Group Ltd. 1,161,731 99,409 7,850 0 7,150
Uni-Marts, Inc. <F++> 3,003,656 2,935,500
Unilab Corporation 3,066,406 6,904,748 0 (4,953,877)
United Grain Growers
Ltd. 4,979,496 2,382,727 <F##> 123,753 1,885,876
United Retail Group,
Inc. <F++> 3,080,886 2,591,500
Uranium Resources,
Inc. 11,969,994 262,375 5,026,209
Vertex
Communications
Corporation 7,822,500 11,235,000
Wave Technologies
International,
Inc. 1,115,313 171,250 1,627,500
Westmoreland Coal
8.5% Conv.
Pfd.-voting <F++> 996,148 733,950
Wharf Resources,
Ltd. 11,533,393 9,363,449 0 474,223
Zapata Corporation 7,848,488 4,083,021 10,620,594 <F##> 2,566,292
------------ ------------ ------------ ------------ ---------- -----------
$405,328,896 $143,457,164 $122,509,309 $413,905,495 $2,823,480 $36,649,095
============ ============ ============ ============ ========== ===========
LINDNER DIVIDEND
FUND
American Bank of
Connecticut $ 3,011,638 $ 4,395,155 $ 188,342
Bitech Petroleum
Corp. <F++> $ 5,200,982 5,304,430
Comprehensive Care
Corporation <F++> 3,605,982 $ 3,605,982 0 $ 904,532
El Paso Electric
Company 23,130,000 335,852 26,837,500 (53,977)
Handleman Company <F#> 8,728,194 18,483,038
Harken Energy
Corporation <F++> 20,419,475 45,500,000
Metricom, Inc. <F#> 5,472,409 7,143,188
Pimco Commercial
Mortgage
Securities 7,181,638 7,753,749 0 539,549 (21,858)
Spaghetti Warehouse,
Inc. <F++> 2,399,500 2,879,400
Streamlogic
Corporation
(formerly
Micropolis Corp.) <F#> 3,742,360 5,979,653 0 (2,898,487)
Uranium Resources,
Inc.
Common stock 5,000,250 1,991,625
Common stock -
Rule 144A 7,375,000 2,937,500
Zapata Corporation 6,638,461 4,443,694 11,008,608 0 2,155,879
------------ ------------ ------------ ------------ ---------- -----------
$ 52,336,987 $ 54,012,596 $ 28,683,844 $115,471,836 $ 727,891 $ 86,089
============ ============ ============ ============ ========== ===========
LINDNER BULWARK FUND
Buffton Corporation <F++> $ 1,194,635 $ 1,064,250
Gateway Industries,
Inc. <F++> 559,002 475,910
Rose's Stores, Inc. <F#> 901,259 1,148,870
Scientific Software
Intercomp, Inc. <F#> 526,890 409,364
Triton Group Ltd.<F^^> <F#> 532,534 $ 885,763 0
Westmoreland Coal
8.5% Conv. Pfd.
(Vote) <F#> 793,428 626,325
------------ ------------ ------------ ------------ ---------- -----------
$ 0 $ 4,507,748 $ 885,763 $ 3,724,719 $ 0 $ 0
============ ============ ============ ============ ========== ===========
<FN>
<F#> - At June 30, 1996, was not affiliated.
<F++> - At June 30, 1996, was not owned.
<F##> - At June 30, 1997, was not affiliated.
<F^^> - Investment merged into a non-affiliated security resulting in no gain or
loss.
39
40
- -------------------------------------------------------------------------------
LINDNER INVESTMENTS
- -------------------------------------------------------------------------------
6. Expense Offset Arrangements
The Funds have an arrangement whereby custodian expenses are reduced by
maintaining a compensating balance with the custodian. The Funds could have
invested the assets used by the custodian in an income-producing asset if
it had not agreed to a reduction in fees under the expense offset
arrangement. In the Statements of Operations and expense ratio in the
Financial Highlights, total expenses include the expense which had been
offset. The following are the aggregate amounts for the year ended June 30,
1997, by which expenses have been increased for financial statement
presentation:
- -----------------------------------------------------------------------------------------
LINDNER GROWTH FUND $53,816
LINDNER DIVIDEND FUND 81,076
LINDNER UTILITY FUND 1,456
LINDNER/RYBACK
SMALL-CAP FUND 661
LINDNER BULWARK FUND 2,325
LINDNER INTERNATIONAL FUND 57
- -----------------------------------------------------------------------------------------
7. Capital Stock
The Funds have authorized unlimited shares of $.01 par value Investor
shares and Institutional shares. Transactions in shares of capital stock
for the years ended June 30, 1997 and 1996, were as follows:
Year Ended June 30, 1997 Year Ended June 30, 1996
-------------------------------------- -----------------------------------
Shares Amount Shares Amount
------------------ ------------------ ----------- ---------------
LINDNER GROWTH FUND
Investor shares
- ---------------
Sold 4,034,285 $ 104,275,859 62,065,616 $ 1,135,061,274
Dividends and Distributions reinvested 7,123,614 174,101,137 4,157,926 98,228,064
Redeemed (8,411,952) (216,049,524) (73,404,006) (1,408,456,014)
------------------ ------------------ ----------- ---------------
Net increase 2,745,947 $ 62,327,472 (7,180,464) $ (175,166,676)
================== ================== =========== ===============
Institutional shares
- --------------------
Sold 3,917 $ 95,942 -- --
Dividends and Distributions reinvested 1 13 -- --
Redeemed (2) (60) -- --
------------------ ------------------ ----------- ---------------
Net increase 3,916 $ 95,895 -- --
================== ================== =========== ===============
LINDNER DIVIDEND FUND
Investor shares
- ---------------
Sold 11,601,117 $ 321,785,067 97,757,829 $ 2,552,736,189
Dividends and Distributions reinvested 5,881,248 161,114,417 4,629,712 126,958,767
Redeemed (26,976,613) (746,721,150) (93,903,065) (2,446,357,894)
------------------ ------------------ ----------- ---------------
Net increase (9,494,248) $ (263,821,666) 8,484,476 $ 233,337,062
================== ================== =========== ===============
Institutional shares
- --------------------
Sold 82,348 $ 2,267,410 -- --
Dividends and Distributions reinvested 2,723 74,615 -- --
Redeemed (13,041) (362,326) -- --
------------------ ------------------ ----------- ---------------
Net increase 72,030 $ 1,979,699 -- --
================== ================== =========== ===============
LINDNER UTILITY FUND
Investor shares
- ---------------
Sold 2,353,165 $ 34,422,373 3,272,220 $ 40,928,674
Dividends and Distributions reinvested 72,998 1,059,599 42,941 556,712
Redeemed (1,734,066) (24,836,048) (2,673,173) (32,925,623)
------------------ ------------------ ----------- ---------------
Net increase 692,097 $ 10,645,924 641,988 $ 8,559,763
================== ================== =========== ===============
40
41
- -------------------------------------------------------------------------------
LINDNER INVESTMENTS
- -------------------------------------------------------------------------------
Year Ended June 30, 1997 Year Ended June 30, 1996
-------------------------------------- -----------------------------------
Shares Amount Shares Amount
------------------ ------------------ ----------- ---------------
Institutional shares
- --------------------
Sold 19,057 $ 268,131 -- --
Dividends and Distributions reinvested 173 2,492 -- --
Redeemed (15,812) (226,286) -- --
------------------ ------------------ ----------- ---------------
Net increase 3,418 $ 44,337 -- --
================== ================== =========== ===============
LINDNER/RYBACK SMALL-CAP FUND
Investor shares
- ---------------
Sold 2,182,401 $ 14,716,844 2,431,078 $ 12,727,249
Dividends and Distributions reinvested 3,864 25,192 149,350 784,089
Redeemed (597,054) (4,036,226) (2,375,091) (11,949,824)
------------------ ------------------ ----------- ---------------
Net increase 1,589,211 $ 10,705,810 205,337 $ 1,561,514
================== ================== =========== ===============
Institutional shares
- --------------------
Sold 24 $ 150 -- --
Dividends and Distributions reinvested 0 0 -- --
Redeemed 0 0 -- --
------------------ ------------------ ----------- ---------------
Net increase 24 $ 150 -- --
================== ================== =========== ===============
LINDNER BULWARK FUND
Investor shares
- ---------------
Sold 11,966,627 $ 100,089,008 9,824,886 $ 78,768,569
Dividends and Distributions reinvested 154,353 1,236,353 231,734 1,543,443
Redeemed (9,346,728) (75,888,500) (11,784,513) (86,171,528)
------------------ ------------------ ----------- ---------------
Net increase 2,774,252 $ 25,436,861 (1,727,893) $ (5,859,516)
================== ================== =========== ===============
Institutional shares
- --------------------
Sold 286,659 $ 2,316,545 -- --
Dividends and Distributions reinvested 3,547 28,338 -- --
Redeemed (54,929) (406,776) -- --
------------------ ------------------ ----------- ---------------
Net increase 235,277 $ 1,938,107 -- --
================== ================== =========== ===============
LINDNER INTERNATIONAL FUND
Investor shares
- ---------------
Sold 508,905 $ 5,215,761 203,243 $ 1,787,712
Dividends and Distributions reinvested 2,851 27,282 235 2,053
Redeemed (212,319) (2,179,926) (114,402) (1,001,419)
------------------ ------------------ ----------- ---------------
Net increase 299,437 $ 3,063,117 89,076 $ 788,346
================== ================== =========== ===============
Institutional shares
- --------------------
Sold 38 $ 382 -- --
Dividends and Distributions reinvested 0 1 -- --
Redeemed 0 0 -- --
------------------ ------------------ ----------- ---------------
Net increase 38 $ 383 -- --
================== ================== =========== ===============
8. Distributions to Shareholders
On June 27, 1997, distributions to shareholders were recorded for Lindner
Dividend Fund and Lindner Utility Fund. Lindner Dividend Fund declared a
$0.44 income dividend and Lindner Utility Fund declared a $0.09 income
dividend to shareholders of record on June 26, 1997, which were paid on
July 3, 1997.
41
42
FINANCIAL HIGHLIGHTS
(FOR AN INVESTOR SHARE OUTSTANDING THROUGHOUT THE PERIOD)
INCOME (LOSS) FROM INVESTMENT OPERATIONS DISTRIBUTIONS
-------------------------------------------------------- ----------------------------------------------
Net Realized Distributions
and from Net
Net Asset Unrealized Total Dividends Realized
Value, Net Gains from from Net Gains from
Beginning Investment (Losses) on Investment Investment Investment Total
of Period Income Investments Operations Income Transactions Distributions
---------------------------------------------------------------------------------------------------------------------------
LINDNER GROWTH FUND <F1>
------------------------
Period Ended June 30,
1988 $19.15 $0.66 $0.52 $1.18 $0.98 $1.61 $2.59
1989 $17.74 $0.85 $1.94 $2.79 $0.69 $0.18 $0.87
1990 $19.66 $0.85 $0.66 $1.51 $0.91 $0.84 $1.75
1991 $19.42 $0.75 ($0.88) ($0.13) $0.86 $0.71 $1.57
1992 $17.72 $0.57 $2.47 $3.04 $0.66 $0.00 $0.66
1993 <F8> $20.10 $0.50 $2.40 $2.90 $0.53 $0.15 $0.68
1994 $22.32 $0.38 $0.71 $1.09 $0.46 $0.53 $0.99
1995 $22.42 $0.43 $2.66 $3.09 $0.34 $1.84 $2.18
1996 $23.33 $0.40 $4.47 $4.87 $0.47 $1.34 $1.81
1997 $26.39 $0.36 $2.72 $3.08 $0.39 $3.10 $3.49
---------------------------------------------------------------------------------------------------------------------------
---------------------------------------------------------------------------------------------------------------------------
LINDNER DIVIDEND FUND <F2>
--------------------------
Period Ended February 28,
1988 $24.49 $1.68 ($1.95) ($0.27) $1.87 $1.16 $3.03
1989 $21.19 $1.71 $1.65 $3.36 $1.32 $0.06 $1.38
1990 $23.17 $2.02 ($0.30) $1.72 $2.19 $0.01 $2.20
1991 $22.69 $1.92 ($1.17) $0.75 $1.86 $0.02 $1.88
1992 $21.56 $2.15 $2.55 $4.70 $1.99 $0.00 $1.99
1993 <F8> $24.27 $1.72 $2.98 $4.70 $1.86 $0.10 $1.96
1994 $27.01 $1.88 $1.06 $2.94 $1.74 $0.58 $2.32
1995 $27.63 $1.93 ($2.13) ($0.20) $1.90 $0.57 $2.47
Period Ended June 30,
1995 $24.96 $0.95 $1.05 $2.00 $0.96 $0.00 $0.96
1996 $26.00 $1.80 $2.29 $4.09 $1.79 $0.23 $2.02
1997 $28.07 $1.63 $0.70 $2.33 $1.68 $0.78 $2.46
---------------------------------------------------------------------------------------------------------------------------
---------------------------------------------------------------------------------------------------------------------------
LINDNER UTILITY FUND <F3>
-------------------------
Period Ended June 30,
1994 $10.00 $0.05 ($0.01) $0.04 $0.02 $0.00 $0.02
1995 $10.02 $0.39 $0.84 $1.23 $0.39 $0.09 $0.48
1996 $10.77 $0.35 $3.42 $3.77 $0.34 $0.00 $0.34
1997 $14.20 $0.39 $1.60 $1.99 $0.42 $0.02 $0.44
---------------------------------------------------------------------------------------------------------------------------
---------------------------------------------------------------------------------------------------------------------------
LINDNER/RYBACK SMALL-CAP FUND <F5>
----------------------------------
Period Ended June 30,
1994 $5.00 $0.01 ($0.22) ($0.21) $0.00 $0.00 $0.00
1995 $4.79 ($0.03) $0.71 $0.68 $0.01 $0.00 $0.01
1996 $5.46 $0.00 $1.30 $1.30 $0.00 $0.61 $0.61
1997 $6.15 $0.04 $1.49 $1.53 $0.01 $0.00 $0.01
---------------------------------------------------------------------------------------------------------------------------
---------------------------------------------------------------------------------------------------------------------------
LINDNER BULWARK FUND <F4>
-------------------------
Period Ended June 30,
1994 $7.00 $0.01 $0.16 $0.17 $0.00 $0.00 $0.00
1995 $7.17 $0.11 ($0.10) $0.01 $0.05 $0.04 $0.09
1996 $7.09 $0.26 $1.32 $1.58 $0.31 $0.00 $0.31
1997 $8.36 $0.29 ($1.81) ($1.52) $0.14 $0.00 $0.14
---------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
------------------------------------------------------------------------------------
Ratio of Net
Investment Net
Net Asset Ratio of Income Assets,
Value, Total Expenses to Portfolio Average End of
End of Return to Average Average Turnover Commission Period
Period <F7> Net Assets Net Assets Rate Rates (In Millions)
-----------------------------------------------------------------------------------------------------------------------------------
LINDNER GROWTH FUND <F1>
------------------------
Period Ended June 30,
1988 $17.74 7.49% 1.07% 3.76% 20.93% $404
1989 $19.66 16.51% 0.92% 4.93% 17.81% $535
1990 $19.42 7.89% 0.74% 4.84% 19.24% $716
1991 $17.72 -0.23% 0.83% 4.64% 12.96% $783
1992 $20.10 17.58% 0.80% 3.05% 11.37% $978
1993 <F8> $22.32 14.87% 0.80% 2.52% 18.71% $1,278
1994 $22.42 4.83% 0.65% 1.69% 37.92% $1,528
1995 $23.33 14.89% 0.54% 1.89% 24.94% $1,446
1996 $26.39 21.95% 0.63% <F9> 1.53% 39.49% $0.0397 $1,446
1997 $25.98 12.50% 0.44% 1.39% 36.39% $0.0437 $1,495
-----------------------------------------------------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------------------------------------------------
LINDNER DIVIDEND FUND <F2>
--------------------------
Period Ended February 28,
1988 $21.19 -0.51% 1.04% 7.43% 16.52% $52
1989 $23.17 16.21% 0.97% 7.57% 2.30% $97
1990 $22.69 7.48% 0.87% 8.90% 5.47% $142
1991 $21.56 3.84% 0.87% 8.98% 3.36% $163
1992 $24.27 22.91% 0.80% 9.75% 24.01% $266
1993 <F8> $27.01 20.28% 0.74% 7.10% 13.50% $1,016
1994 $27.63 11.19% 0.64% 7.01% 43.20% $1,532
1995 $24.96 -0.44% 0.61% 7.76% 29.79% $1,697
Period Ended June 30,
1995 $26.00 8.12% 0.21% 2.43% 11.00% $1,903
1996 $28.07 16.14% 0.60% <F9> 6.62% 30.24% $0.0508 $2,293
1997 $27.94 8.75% 0.60% 5.74% 40.32% $0.0443 $2,017
-----------------------------------------------------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------------------------------------------------
LINDNER UTILITY FUND <F3>
-------------------------
Period Ended June 30,
1994 $10.02 0.39% 1.30% 0.76% 44.95% $11
1995 $10.77 12.51% 1.04% 3.02% 190.70% $18
1996 $14.20 35.39% 0.95% <F9> 2.87% 98.58% $0.0422 $32
1997 $15.75 14.29% 0.89% 2.81% 86.44% $0.0376 $47
-----------------------------------------------------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------------------------------------------------
LINDNER/RYBACK SMALL-CAP FUND <F5>
----------------------------------
Period Ended June 30,
1994 $4.79 -4.20% 0.96% 0.52% 5.03% $5
1995 $5.46 14.32% 1.65% -0.57% 158.62% $8
1996 $6.15 25.70% 1.22% <F9> -0.04% 103.05% $0.0560 $10
1997 $7.67 24.96% 0.96% 0.46% 49.49% $0.0496 $25
-----------------------------------------------------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------------------------------------------------
LINDNER BULWARK FUND <F4>
-------------------------
Period Ended June 30,
1994 $7.17 2.43% 0.66% 0.26% 0.89% $31
1995 $7.09 0.10% 1.27% 2.45% 122.64% $65
1996 $8.36 23.44% 1.24% <F9> 2.45% 139.82% $0.0320 $62
1997 $6.70 -18.43% 1.20% 3.86% 457.57% $0.0314 $68
-----------------------------------------------------------------------------------------------------------------------------------
42
43
INCOME (LOSS) FROM INVESTMENT OPERATIONS DISTRIBUTIONS
-------------------------------------------------------- ----------------------------------------------
Net Realized Distributions
and from Net
Net Asset Unrealized Total Dividends Realized
Value, Net Gains from from Net Gains from
Beginning Investment (Losses) on Investment Investment Investment Total
of Period Income Investments Operations Income Transactions Distributions
---------------------------------------------------------------------------------------------------------------------------
LINDNER INTERNATIONAL FUND <F6>
-------------------------------
Period Ended June 30,
1995 $9.00 $0.07 $0.02 $0.09 $0.00 $0.00 $0.00
1996 $9.09 ($0.01) $0.86 $0.85 $0.05 $0.00 $0.05
1997 $9.89 ($0.01) $1.45 $1.44 $0.00 $0.14 $0.14
---------------------------------------------------------------------------------------------------------------------------
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RATIOS/SUPPLEMENTAL DATA
------------------------------------------------------------------------------------
Ratio of Net
Investment Net
Net Asset Ratio of Income Assets,
Value, Total Expenses to Portfolio Average End of
End of Return to Average Average Turnover Commission Period
Period <F7> Net Assets Net Assets Rate Rates (In Millions)
----------------------------------------------------------------------------------------------------------------------------------
LINDNER INTERNATIONAL FUND <F6>
-------------------------------
Period Ended June 30,
1995 $9.09 1.00% 1.26% 1.02% 0.00% $0.3
1996 $9.89 9.41% 2.57% <F9> 0.05% 48.40% $0.0293 $1.2
1997 $11.19 14.76% 1.96% -0.14% 37.79% $0.9954 $4.7
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<FN>
<F1> Historical performance information is for Lindner Fund, Inc. ("LGFI"),
the predecessor of the Lindner Growth Fund series of the Trust. The
Lindner Growth Fund series of the Trust succeeded to all of the assets
and liabilities of LGFI on June 30, 1995, pursuant to a reorganization
approved by the shareholders of LGFI on June 29, 1995.
<F2> Historical performance information is for Lindner Dividend Fund, Inc.
("LDFI"), the predecessor of the Lindner Dividend Fund series of the
Trust. The Lindner Dividend Fund series of the Trust succeeded to all of
the assets and liabilities of LDFI on June 30, 1995, pursuant to a
reorganization approved by the shareholders of LDFI on June 29, 1995.
<F3> Operations commenced on October 4, 1993.
<F4> Operations commenced on January 24, 1994.
<F5> Operations commenced on February 11, 1994.
<F6> Operations commenced on January 1, 1995.
<F7> Total return for periods of less than one year are not annualized. Total
return is the percentage increase in value for a period, assuming initial
investment at the net asset value on 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.
<F8> On January 29, 1993, Lindner Growth Fund and Lindner Dividend Fund
changed financial advisors to Ryback Management Corporation from Lindner
Management Corporation.
<F9> Expense ratio for periods after September 1, 1995, are computed using
gross expenses which include fees reduced in connection with specific
agreements.
(FOR AN INSTITUTIONAL SHARE OUTSTANDING THROUGHOUT THE PERIOD)
----------------------------------------------------------------------------------------------------------------------------------
LINDNER GROWTH FUND <F1>
-----------------------
1997 $26.39 $0.34 $2.68 $3.02 $0.37 $3.10 $3.47
----------------------------------------------------------------------------------------------------------------------------------
----------------------------------------------------------------------------------------------------------------------------------
LINDNER DIVIDEND FUND <F2>
-------------------------
1997 $28.07 $1.61 $0.66 $2.27 $1.66 $0.78 $2.44
----------------------------------------------------------------------------------------------------------------------------------
----------------------------------------------------------------------------------------------------------------------------------
LINDNER UTILITY FUND <F3>
------------------------
1997 $14.20 $0.27 $1.59 $1.86 $0.31 $0.02 $0.33
----------------------------------------------------------------------------------------------------------------------------------
----------------------------------------------------------------------------------------------------------------------------------
LINDNER/RYBACK SMALL-CAP FUND <F4>
---------------------------------
1997 $6.15 $0.04 $1.49 $1.53 $0.01 $0.00 $0.01
----------------------------------------------------------------------------------------------------------------------------------
----------------------------------------------------------------------------------------------------------------------------------
LINDNER BULWARK FUND <F5>
------------------------
1997 $8.36 $0.26 ($1.81) ($1.55) $0.14 $0.00 $0.14
----------------------------------------------------------------------------------------------------------------------------------
----------------------------------------------------------------------------------------------------------------------------------
LINDNER INTERNATIONAL FUND <F6>
------------------------------
1997 $9.89 ($0.04) $1.45 $1.41 $0.00 $0.14 $0.14
----------------------------------------------------------------------------------------------------------------------------------
Net
Assets,
End of
Period
(In
Thousands)
----------------------------------------------------------------------------------------------------------------------------------
LINDNER GROWTH FUND <F1>
------------------------
1997 $25.94 15.36% <F7> 0.46% 1.29% 36.39% $0.0437 $101.6
----------------------------------------------------------------------------------------------------------------------------------
----------------------------------------------------------------------------------------------------------------------------------
LINDNER DIVIDEND FUND <F2>
--------------------------
1997 $27.90 9.84% <F7> 0.85% 5.69% 40.32% 0.0443 $2,010
----------------------------------------------------------------------------------------------------------------------------------
----------------------------------------------------------------------------------------------------------------------------------
LINDNER UTILITY FUND <F3>
-------------------------
1997 $15.74 14.52% <F7> 0.75% 2.42% 86.44% $0.0376 $53.8
----------------------------------------------------------------------------------------------------------------------------------
----------------------------------------------------------------------------------------------------------------------------------
LINDNER/RYBACK SMALL-CAP FUND <F4>
----------------------------------
1997 $7.67 21.21% <F7> 0.59% 0.26% 49.49% $0.0496 $0.2
----------------------------------------------------------------------------------------------------------------------------------
----------------------------------------------------------------------------------------------------------------------------------
LINDNER BULWARK FUND <F5>
-------------------------
1997 $6.67 -18.61% <F7> 1.37% 4.45% 457.57% $0.0314 $1.57
----------------------------------------------------------------------------------------------------------------------------------
----------------------------------------------------------------------------------------------------------------------------------
LINDNER INTERNATIONAL FUND <F6>
-------------------------------
1997 $11.16 17.06% <F7> 1.48% -0.13% 37.79% $0.9954 $0.4
----------------------------------------------------------------------------------------------------------------------------------
<FN>
<F1> For the period July 12, 1996 (initial purchase) to June 30, 1997.
<F2> For the period July 9, 1996 (initial purchase) to June 30, 1997.
<F3> For the period October 31, 1996 (initial purchase) to June 30, 1997.
<F4> For the period November 1, 1996 (initial purchase) to June 30, 1997.
<F5> For the period July 11, 1996 (initial purchase) to June 30, 1997.
<F6> For the period November 1, 1996 (initial purchase) to June 30, 1997.
<F7> Total return for periods of less than one year are not annualized. Total
return is the percentage increase in value for a period, assuming initial
investment at the net asset value on 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.
43
44
INDEPENDENT AUDITORS' REPORT
Lindner Growth Fund,
Lindner Dividend Fund,
Lindner Utility Fund,
Lindner/Ryback Small-Cap Fund,
Lindner Bulwark Fund,
and Lindner International Fund
To the Trustees and Shareholders of Lindner Investments:
We have audited the accompanying statements of assets and liabilities of the
Lindner Growth Fund, the Lindner Dividend Fund, the Lindner Utility Fund, the
Lindner/Ryback Small-Cap Fund, the Lindner Bulwark Fund, and the Lindner
International Fund, including the schedules of investments, as of June 30,
1997, and the related statements of operations for the year then ended, the
statement of changes in net assets for the years ended June 30, 1997 and 1996,
and the financial highlights for the periods 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. The financial
highlights for each of the years in the six year period ended June 30, 1993 of
the Lindner Growth Fund (formally the Lindner Fund, Inc.) and for each of the
years in the six year period ended February 28, 1993 of the Lindner Dividend
Fund were audited by other auditors, whose reports, dated August 9, 1993 and
April 5, 1993 (April 15 as to certain distributions), respectively, expressed
an unqualified opinion on those statements.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements and financial
highlights are free of material misstatement. An audit 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, 1997, by corresponding with the Funds' custodians and brokers. An audit
also includes assessing the accounting principles used and significant
estimates made by management, as well as evaluating the overall financial
statement presentation. We believe that our audits provide a reasonable basis
for our opinion.
In our opinion, such financial statements and financial highlights present
fairly, in all material respects, the financial position of the Funds at June
30, 1997, and the results of their operations, the changes in their net assets,
and the financial highlights for the respective stated periods, in conformity
with generally accepted accounting principles.
DELOITTE & TOUCHE LLP
St. Louis, Missouri
August 8, 1997
44
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47
- -----------------------------------
LINDNER INVESTMENTS
7711 Carondelet Avenue, Ste. 700
St. Louis, Missouri 63105
Tel: 314-727-5305
Fax: 314-727-9306
BOARD OF TRUSTEES
Robert L. Byman
Terence P. Fitzgerald
Marc P. Hartstein
Peter S. Horos
Donald J. Murphy
Dennis P. Nash
Eric E. Ryback
Doug T. Valassis
INVESTMENT ADVISER
Ryback Management Corporation
CUSTODIANS
Star Bank, N.A.
The Chase Manhattan Bank, N.A.
COUNSEL
Dykema Gossett PLLC
INDEPENDENT AUDITORS
Deloitte & Touche LLP
TRANSFER AGENT
Ryback Management Corporation
- -----------------------------------
LINDNER FUNDS
[LOGO] ADVISED BY RYBACK MANAGEMENT CORPORATION
----------------------------------------
www.lindnerfunds.com
LINDNER FUNDS
ADVISED BY RYBACK MANAGEMENT CORPORATION
----------------------------------------
[LOGO]
annual report
1997