-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, EDr0DnB2+4SWPkCItgi942iHPYDavYguFtLAEckU8N4HCk8JkYC5+vr6jlzXA5ot SGF1cgS09HMfTX+3mXG56A== 0000873929-98-000004.txt : 19980629 0000873929-98-000004.hdr.sgml : 19980629 ACCESSION NUMBER: 0000873929-98-000004 CONFORMED SUBMISSION TYPE: N-30D PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 19980430 FILED AS OF DATE: 19980626 SROS: NONE FILER: COMPANY DATA: COMPANY CONFORMED NAME: RIGGS FUNDS CENTRAL INDEX KEY: 0000873929 STANDARD INDUSTRIAL CLASSIFICATION: [] IRS NUMBER: 251655043 STATE OF INCORPORATION: MA FISCAL YEAR END: 0430 FILING VALUES: FORM TYPE: N-30D SEC ACT: SEC FILE NUMBER: 811-06309 FILM NUMBER: 98654721 BUSINESS ADDRESS: STREET 1: FEDERATED INVESTORS TOWER CITY: PITTSBURGH STATE: PA ZIP: 15222 BUSINESS PHONE: 4122881900 FORMER COMPANY: FORMER CONFORMED NAME: RIMCO MONUMENT FUNDS DATE OF NAME CHANGE: 19920703 N-30D 1 Combined Annual Report to Shareholders April 30,1998 Riggs U.S. Treasury Money Market Fund Riggs Prime Money Market Fund Riggs U.S. Government SecuritiesFund (formerly RIMCO Monument Bond Fund) Riggs Stock Fund Riggs Small Company Stock Fund (formerly RIMCO Monument Small Capitalization Equity Fund) Mutual Funds are not FDIC insured and are not deposits or obligations of or guaranteed by Riggs Bank N.A. They involve investment risks, including the possible loss of the principal amount invested. Federated Securities Corp., Distributor [LOGO] (formerly RIMCO Monument Funds) PRESIDENT'S MESSAGE Dear Investor: I am pleased to present the Annual Report for the Riggs Funds (formerly, the RIMCO Monument Funds) for the 12-month period from May 1, 1997 through April 30, 1998. It begins with an investment commentary by each portfolio manager, followed by a complete list of holdings and the financial statements for Riggs U.S. Treasury Money Market Fund, Riggs Prime Money Market Fund, Riggs U.S. Government Securities Fund (formerly, RIMCO Monument Bond Fund), Riggs Stock Fund, and Riggs Small Company Stock Fund (formerly, RIMCO Monument Small Capitalization Equity Fund). It was a strong year for all Riggs Funds, as indicated by the following fund performance summary: Riggs U.S. Treasury Money Market Fund This is the most conservative Riggs fund, which is managed to help shareholders earn daily income on their ready cash. The fund's portfolio of U.S. Treasury money market securities paid a total of $0.05 per share in dividends over the reporting period for a total return of 5.00%.* The 7-day net yield began the reporting period on May 1, 1997 at 4.84% and ended the reporting period on April 30, 1998 at 4.74%.+ Net assets in the fund totaled $117.4 million at the end of the reporting period. Riggs Prime Money Market Fund This fund helps shareholders earn daily income on their ready cash through a portfolio of high-quality money market securities. The fund's Class Y Shares (formerly, Class A Shares) paid dividends totaling $0.05 per share for a total return of 5.22%, while Class R Shares (formerly, Class B Shares) paid dividends totaling $0.05 per share for a total return of 4.92%.* The 7-day net yield for Class Y Shares began the reporting period on May 1, 1997 at 5.12% and ended the reporting period on April 30, 1998 at 5.01%.+ The 7-day net yield for Class R Shares began the reporting period on May 1, 1997 at 4.62% and ended the reporting period on April 30, 1998 at 4.76%.+ The fund ended the reporting period with total net assets of $318.6 million. Riggs U.S. Government Securities Fund This fund's well-diversified bond portfolio paid dividends totaling $0.57 per share, while its net asset value rose from $9.41 to $9.77. The dividends and net asset value increase resulted in a total return of 10.14% (4.90% adjusted for the fund's sales charge).+ Net assets in the fund totaled $34.5 million at the end of the reporting period, which were invested across corporate bonds (2.9%), government agency securities (35.2%) and U.S. Treasury obligations (59.8%). Riggs Stock Fund During the reporting period, the fund's diversified portfolio of high-quality stocks_which included many household names like American Express, AT&T, Compaq, Hilton Hotels, Intel, Merck, Mobil, Sears, and Xerox_produced a very strong total return of 39.68% (31.65% adjusted for the fund's sales charge). This return was the result of a $1.16 increase in net asset value, $0.11 per share in dividend income and $4.04 per share in capital gains.+ The fund's total net assets reached $117.1 million at the end of the reporting period. Riggs Small Company Stock Fund As the most aggressive fund in the Riggs family, the fund invests in carefully selected stocks issued by small companies. ++It rewarded shareholders with an extremely high return of 77.85% (67.64% adjusted for the fund's sales charge). A very high level of growth in the fund's net asset value_from $12.80 to $18.80_and capital gains totaling $3.19 per share accounted for the total return.+ At the end of the reporting period, fund assets reached $58.2 million. As the enclosed letter fully explains, on July 1, 1998 the name of the RIMCO Monument Funds will be changed to the Riggs Funds. That means you now can follow the daily performance of your investment under the name 'Riggs Funds' in newspaper and other mutual fund listings. Thank you for selecting this fund family to pursue your financial goals. We hope you are pleased with your progress. Sincerely, /s/Edward C. Gonzales Edward C. Gonzales President June 15, 1998 * Although money market funds seek to maintain a stable net asset value of $1.00, there is no assurance that they will be able to do so. An investment in this fund is neither insured nor guaranteed by the U.S. government. + Performance quoted reflects past performance and is not indicative of future results. Investment return and principal value will fluctuate so that an investor's shares, when redeemed, may be worth more or less than their original cost. Yield will vary. Yields quoted for money market funds most closely reflect the funds' current earnings. ++ Small cap stocks have historically experienced greater volatility than average. INVESTMENT REVIEW Riggs U.S. Government Securities Fund (formerly, RIMCO Monument Bond Fund) Following the fourth quarter rally which was inspired by economic troubles in Asia, the fixed income markets settled into a stable trading range. The 30-year Treasury bond yield remained in a narrow range of 5.75% to 6.05%. The U.S. economy continued to be strong, and gains in employment and wages sparked fears of a shift in Federal Reserve Board (the "Fed") policy towards a tightening of credit. These factors created a flat yield curve, with 2- and 10-year Treasury notes yielding approximately the same. During the summer months, we expect a pick-up in market volatility and a re- steepening of the yield curve. In this environment, we favor maturities inthe 2- to 7-year range. We also look for continued capital flows into U.S.dollar denominated fixed income products given their attractive yields relative to foreign bond markets. While psychology of the market may shift toward a Fed tightening, we do not expect a policy change given the unsettled situation in Asia, specifically in Japan and China. RiggsStock Fund ("Stock Fund") Riggs Small Company Stock Fund ("Small Company Fund") (formerly, RIMCO Monument Small Capitalization Equity Fund) The Stock Fund and the Small Company Fund continued to provide solid returns to our shareholders for the twelve-month period ended April 30, 1998. During the reporting period, the Stock Fund generated a total return of 39.68%, based on net asset value, while the Small Company Fund generated a total return of 77.85%, based on net asset value.* Our investment philosophy in managing both equity funds is to balance long-term valuation with the catalyst of short-term earnings acceleration. We employ our methodology, which we call Value/Momentum, by analyzing four key factors: (1) relative value; (2) earnings growth relative to the stock's price-to-earnings multiple; (3) earnings estimate revisions; and (4) relative price strength. For stocks scoring highly in this process, we focus on the fundamental changes that management is implementing within these companies to generate earnings growth. We then choose to invest in those companies in which we have the most confidence in management. Over the reporting period, we continued to maintain broad diversification among industries. In the Stock Fund, companies in the technology and consumer cyclical sectors added significantly to performance, which was partially offset by weakness in the energy sector. Examples of core holdings in the Stock Fund that were propelled by superior earnings growth included: Cisco Systems, up 112%; Xerox, up 85%; and Office Depot, up 108%. The Small Company Fund experienced strong stock performance across many industry groups. In particular, stocks in the health care and consumer cyclical sectors benefited from continued strength in the domestic economy. Noteworthy are the contributions from United Payors & United Providers, up 153%; Atlantic Coast Airlines, up 361%; and Goody's Family Clothing, up 76%. While the environment for stocks has been very favorable, the markets have become extremely volatile. Global changes have made competition more intense and will magnify the importance of strong management. Despite the problems in Asia and occasional profit warnings, inflation has continued to be moderate and the domestic economy has remained healthy. Thus, we remain positive on the markets going forward. However, we temper our optimism with our belief that earnings growth will moderate from the torrid pace of the past few years. Through all market environments, we believe that our disciplined focus on undervalued companies with solid earnings growth should continue to reward shareholders. Riggs Prime Money Market Fund ("Prime Fund") RiggsU.S. Treasury Money Market Fund ("Treasury Fund") In our October 1997 review and outlook, we referred to two major forces working to determine Fed policy toward short term interest rates. The first force was the continuously surprising strong Gross Domestic Product ("GDP") and employment growth the U.S. economy was undergoing, which led the Fed to maintain a tightening bias toward rates. The second force at work was, and remains, the "Asian crisis". This crisis, characterized by plummeting currency, stock, and bond markets in Asia, has led to the anticipation of sharply lower U.S. exports, lower prices for goods imported into the U.S. and generally lower U.S. GDP growth. These two main forces have essentially remained the same since October 1997, which has led to very little change in short-term corporate interest rates. Short rates for Treasury bills remain well below the federal funds target rate of 5.5%, leaving treasury-backed repurchase agreements as the investment of choice for the Treasury Fund. Commercial paper rates have declined 0.04% to 5.5% for 3-month commercial paper and declined 0.11% to 5.62% for 9-month commercial paper. This leaves the short corporate yield curve very flat, with little benefit to extending out the curve. Duration of the Prime Fund will be kept in the area of 60 days until rates are more attractive further out on the yield curve. * Performance quoted reflects past performance and is not indicative of future results. Investment return and principal value will fluctuate, so that an investor's shares, when redeemed, may be worth more or less than their original cost. Riggs U.S. Government Securities Fund (formerly, RIMCO Monument Bond Fund) Class R Shares Growth of $10,000 Invested in Riggs U.S. Government Securities Fund The graph below illustrates the hypothetical investment of $10,000* in the Riggs U.S. Government Securities Fund (the "Fund") from May 11, 1992 (start of performance) to April 30, 1998, compared to the Lehman Brothers Government./Corporate Total Index ("LBGCTI"). [GRAPHIC REPRESENTATION "A" OMITTED. SEE APPENDIX.] AVERAGE ANNUAL TOTAL RETURN** FOR THE PERIOD ENDED APRIL 30, 1998 1 Year 4.90% 5 Years 5.13% Start of Performance (5/11/92) 6.45% Past performance is not predictive of future performance. Your investment return and principal value will fluctuate so when shares are redeemed, they may be worth more or less than original cost. Mutual funds are not obligations of or guaranteed by any bank and are not federally insured. * Represents a hypothetical investment of $10,000 in the Fund after deducting the maximum sales charge of 3.50% ($10,000 investment minus $350 sales charge=$9,650). The Fund's performance assumes the reinvestment of all dividends and distributions. The LBGCTI has been adjusted to reflect reinvestment of dividends on securities in the index. Effective December 18, 1995, the maximum sales charge increased to 4.75%. Effective July 1, 1998, the front-end sales charge will be eliminated, and a contingent deferred sales charge of 2.00% will be implemented for newly purchased shares. **Total return quoted reflects all applicable sales charges. +The LBGCTI is not adjusted to reflect sales loads, expenses, or other fees that the Securities and Exchange Commission ("SEC") requires to be reflected in the Fund's performance. This index is unmanaged. Riggs Stock Fund Class R Shares Growth of $10,000 Invested in Riggs Stock Fund The graph below illustrates the hypothetical investment of $10,000* in the Riggs Stock Fund (the "Fund") from May 11, 1992 (start of performance) to April 30, 1998 compared to the Standard & Poor's 500 Index ("S&P 500"). [GRAPHIC REPRESENTATION "B" OMITTED. SEE APPENDIX.] AVERAGE ANNUAL TOTAL RETURN** FOR THE PERIOD ENDED APRIL 30, 1998 1 YEAR 31.65% 5 YEARS 22.51% START OF PERFORMANCE (05/11/92) 19.83% Past performance is not predictive of future performance. Your investment return and principal value will fluctuate so when shares are redeemed, they may be worth more or less than original cost. Mutual funds are not obligations of or guaranteed by any bank and are not federally insured. * Represents a hypothetical investment of $10,000 in the Fund after deducting the sales charge of 3.50% ($10,000 investment minus $350 sales charge = $9,650). The Fund's performance assumes the reinvestment of all dividends and distributions. The S&P 500 has been adjusted to reflect reinvestment of dividends on securities in the index. Effective December 18, 1995 the maximum sales charge increased to 5.75%. Effective July 1, 1998, the front-end sales charge will be eliminated, and a contingent deferred sales charge of 2.00% for newly purchased shares will be implemented on the existing class of the Fund. **Total return quoted reflects all applicable sales charges. + S&P 500 is not adjusted to reflect sales loads, expenses, or other fees that the SEC requires to be reflected in the Fund's performance. This index is unmanaged. Riggs Small Company Stock Fund (formerly, RIMCO Monument Small Capitalization Equity Fund) Class R Shares Growth of $10,000 Invested in Riggs Small Company Stock Fund The graph below illustrates the hypothetical investment of $10,000* in the Riggs Small Company Stock Fund (the "Fund") from February 27, 1995 (start of performance) to April 30, 1998, compared to the Russell 2000 Index ("Russell 2000"). [GRAPHIC REPRESENTATION "C" OMITTED. SEE APPENDIX.] AVERAGE ANNUAL TOTAL RETURN** FOR THE PERIOD ENDED APRIL 30, 1998 1 Year 67.64% Start of Performance (2/27/95) 31.79% Past performance is not predictive of future performance. Your investment return and principal value will fluctuate so when shares are redeemed, they may be worth more or less than original cost. Mutual funds are not obligations of or guaranteed by any bank and are not federally insured. * Represents a hypothetical investment of $10,000 in the Fund after deducting the maximum sales charge of 3.50% ($10,000 investment minus $350 sales charge=$9,650). The Fund's performance assumes the reinvestment of all dividends and distributions. The Russell 2000 has been adjusted to reflect reinvestment of dividends on securities in the index. Effective December 18, 1995, the maximum sales charge increased to 5.75%. Effective July 1, 1998, the front-end sales charge will be eliminated, and a contingent deferred sales charge of 2.00% will be implemented for newly purchased shares. **Total return quoted reflects all applicable sales charges. + The Russell 2000 is not adjusted to reflect sales loads, expenses, or other fees that the SEC requires to be reflected in the Fund's performance. This index is unmanaged. PORTFOLIO OF INVESTMENTS Riggs U.S. Treasury Money Market Fund April 30, 1998
Principal Amount Value U.S. Treasury ObligationsN6.0% U.S. Treasury NoteN6.0% $ 7,000,000 5.875%, 10/31/1998 $ 7,013,928 (a) Repurchase AgreementsN94.3% 36,912,000 Dean Witter Reynolds, Inc., 5.470%, dated 4/30/1998, due 5/1/1998 36,912,000 36,912,000 Donaldson, Lufkin and Jenrette Securities Corp., 5.500%, dated 4/30/1998, due 5/1/1998 36,912,000 36,912,000 Prudential Securities, Inc., 5.470%, dated 4/30/1998, due 5/1/1998 36,912,000 Total Repurchase Agreements 110,736,000 Total Investments (at amortized cost)(b) $ 117,749,928
(a) The repurchase agreements are fully collateralized by U.S. Treasury obligations based on market prices at the date of the portfolio. (b) Also represents cost for federal tax purposes. Note: The categories of investments are shown as a percentage of net assets ($117,424,493) at April 30, 1998. (See Notes which are an integral part of the Financial Statements) STATEMENT OF ASSETS AND LIABILITIES Riggs U.S. Treasury Money Market Fund April 30, 1998
Assets: Investments in repurchase agreements $110,736,000 Investments in securities 7,013,928 Total investments in securities, at amortized cost and value $117,749,928 Cash 667 Income receivable 17,973 Receivable for shares sold 2,933 Total assets 117,771,501 Liabilities: Payable for shares redeemed 1,362 Income distribution payable 322,779 Accrued expenses 22,867 Total liabilities 347,008 Net Assets for 117,424,493 shares outstanding $117,424,493 Net Asset Value, Offering Price and Redemption Proceeds Per Share: $117,424,493 $117,424,493 shares outstanding $1.00
(See Notes which are an integral part of the Financial Statements) STATEMENT OF OPERATIONS Riggs U.S. Treasury Money Market Fund April 30, 1998
Investment Income: Interest $7,762,803 Expenses: Investment advisory fee $ 704,027 Administrative personnel and services fee 186,366 Custodian fees 11,010 Transfer and dividend disbursing agent fees and expenses 30,234 Trustees' fees 1,755 Auditing fees 14,228 Legal fees 2,711 Portfolio accounting fees 25,848 Share registration costs 17,652 Printing and postage 5,454 Insurance premiums 3,063 Miscellaneous 2,887 Total expenses 1,005,235 Waiver of investment advisory fee (119,268) Net expenses 885,967 Net investment income $6,876,836
(See Notes which are an integral part of the Financial Statements) STATEMENT OF CHANGES IN NET ASSETS Riggs U.S. Treasury Money Market Fund
Year Ended April 30, 1998 1997 Increase (Decrease) in Net Assets: OperationsN Net investment income $ 6,876,836 $ 6,367,255 Distributions to ShareholdersN Distributions from net investment income (6,876,836) (6,367,255) Share TransactionsN Proceeds from sale of shares 277,959,898 449,279,619 Net asset value of shares issued to shareholders in payment of distributions declared 1,500,215 860,699 Cost of shares redeemed (303,046,901) (416,232,679) Change in net assets resulting from share transactions (23,586,788) 33,907,639 Change in net assets (23,586,788) 33,907,639 Net Assets: Beginning of period 141,011,281 107,103,642 End of period $ 117,424,493 $ 141,011,281
(See Notes which are an integral part of the Financial Statements) FINANCIAL HIGHLIGHTS Riggs U.S. Treasury Money Market Fund Class Y Shares
(For a share outstanding throughout each period) Year Ended April 30, 1998 1997 1996 1995 1994 Net asset value, beginning of period $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 Income from net investment operations Net investment income 0.05 0.05 0.05 0.04 0.03 Less distributions Distributions from net investment income (0.05) (0.05) (0.05) (0.04) (0.03) Net asset value, end of period $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 Total return (a) 5.00% 4.83% 5.28% 4.39% 2.64% Ratios to average net assets Expenses 0.63% 0.57% 0.60% 0.60% 0.56% Net investment income 4.88% 4.74% 5.17% 4.33% 2.61% Expense reimbursement/waiver (b) 0.08% 0.13% 0.18% 0.20% 0.16% Supplemental data Net assets, end of period (000 omitted) $117,424 $141,011 $107,104 $81,089 $106,948
(a) Based on net asset value, which does not reflect the sales charge or contingent deferred sales charge, if applicable. (b) This voluntary expense decrease is reflected in both the expense and net investment income ratios shown above. (See Notes which are an integral part of the Financial Statements) PORTFOLIO OF INVESTMENTS Riggs Prime Money Market Fund April 30, 1998
Principal Amount Value Commercial PaperN5.6% FinanceN3.8% $12,000,000 Associates Corp. of North America, 5.553%, 5/13/1998 $11,977,960 Producer ManufacturingN1.8% 6,000,000 General Electric Co., 5.578%, 6/11/1998 5,962,348 Total Commercial Paper 17,940,308 Corporate BondsN23.0% BankingN1.2% 3,725,000 First USA Bank, 5.750%, 1/15/1999 3,720,858 Consumer Non-DurablesN2.0% 3,900,000 PepsiCo, Inc., 5.800%, 8/31/1998 3,897,635 1,000,000 PepsiCo, Inc., 7.625%, 11/1/1998 1,008,915 1,558,000 PepsiCo, Inc., 7.750%, 10/1/1998 1,571,679 Total 6,478,229 FinanceN17.2% 5,000,000 American General Finance Corp., 6.390%, 6/15/1998 5,005,112 15,575,000 Fleet Financial Group, Inc., 6.000%, 10/26/1998 15,594,290 5,000,000 Ford Capital BV, 9.000%, 8/15/1998 5,047,050 3,000,000 Ford Capital BV, 9.125%, 5/1/1998 3,000,000 4,200,000 Merrill Lynch & Co., Inc., 9.000%, 5/1/1998 4,200,000 1,465,000 NationsBank Corp., 5.125%, 9/15/1998 1,461,105 5,000,000 NationsBank Corp., 8.500%, 3/1/1999 5,118,036 5,250,000 Norwest Corp., 5.750%, 11/16/1998 5,248,960 1,500,000 Sears Overseas Financial, 5.695%, 7/12/1998 1,483,069 3,700,000 Sears Roebuck Acceptance Corp., 5.600%, 11/16/1998 3,698,613 5,000,000 Sears Roebuck Acceptance Corp., 6.110%, 10/26/1998 5,009,826 Total 54,866,061 Finance - AutomotiveN1.2% 1,000,000 Chrysler Financial Corp., 5.375%, 10/15/1998 999,021 1,500,000 Ford Motor Credit Corp., 5.625%, 1/15/1999 1,497,805 750,000 Ford Motor Credit Corp., 8.000%, 1/15/1999 762,157 480,000 General Motors Acceptance Corp., 7.750%, 1/15/1999 487,085 Total 3,746,068 Finance - EquipmentN0.3% 1,015,000 General Electric Capital Corp., 6.125%, 3/4/1999 1,017,386 Retail TradeN1.1% 3,305,000 Sears, Roebuck & Co., 8.450%, 11/1/1998 3,348,772 Total Corporate Bonds 73,177,374
Corporate NotesN34.8% BankingN3.1% 10,000,000 American Express Centurion Bank, DE, 5.616%, 9/25/1998 10,000,000 FinanceN19.4% 500,000 Associates Corp. of North America, 5.250%, 9/1/1998 499,168 1,000,000 Associates Corp. of North America, 5.290%, 11/2/1998 997,742
Riggs Prime Money Market Fund
Principal Amount Value Corporate Notes-continued FinanceNcontinued $ 3,050,000 Associates Corp. of North America, 7.250%, 5/15/1998 $ 3,051,918 3,000,000 Avco Financial Services, Inc., 5.500%, 5/1/1998 3,000,000 15,000,000 Bear Stearns Cos., Inc., 5.658%, 9/3/1998 15,000,000 750,000 CIT Group Holdings, Inc., 5.700%, 12/15/1998 750,392 6,175,000 CIT Group Holdings, Inc., 5.875%, 11/9/1998 6,172,444 1,550,000 CIT Group Holdings, Inc., 6.125%, 9/1/1998 1,550,966 1,500,000 Deutsche Bank Financial, Inc., 6.375%, 12/23/1998 1,504,650 1,000,000 Ford Motor Credit Corp., 9.250%, 6/15/1998 1,003,801 7,000,000 HFC, Ltd., 6.000%, 6/30/1998 7,001,584 1,000,000 Household Finance Corp., 6.890%, 5/11/1998 1,000,175 3,210,000 Household International, Inc., (Guaranteed by Household International, Inc.), 5.250%, 10/15/1998 3,204,818 10,000,000 Merrill Lynch & Co., Inc., 5.606%, 7/28/1998 10,000,000 7,000,000 PHH Corp., 5.990%, 8/18/1998 7,002,124 Total 61,739,782 Finance - AutomotiveN4.7% 2,000,000 Chrysler Financial Corp., 6.240%, 11/2/1998 2,006,176 500,000 Chrysler Financial Corp., 6.300%, 6/23/1998 500,272 2,500,000 Chrysler Financial Corp., 6.570%, 10/5/1998 2,509,904 2,000,000 Chrysler Financial Corp., 7.290%, 7/7/1998 2,004,948 2,000,000 General Motors Acceptance Corp., 5.700%, 9/2/1998 2,000,375 4,000,000 General Motors Acceptance Corp., 6.300%, 6/4/1998 4,001,394 1,000,000 General Motors Acceptance Corp., 6.450%, 6/24/1998 1,000,807 1,000,000 General Motors Acceptance Corp., 6.500%, 6/4/1998 1,000,335 Total 15,024,211 Finance - EquipmentN7.6% 4,953,000 General Electric Capital Corp., 6.125%, 8/18/1998 4,956,171 1,000,000 International Lease Finance Corp., 5.200%, 9/15/1998 997,427 500,000 International Lease Finance Corp., 5.750%, 1/15/1999 499,342 2,000,000 International Lease Finance Corp., 6.120%, 8/7/1998 2,001,960 8,300,000 International Lease Finance Corp., 8.000%, 2/16/1999 8,451,642 2,115,000 International Lease Finance Corp., 8.350%, 10/1/1998 2,134,991 5,000,000 International Lease Finance Corp., 9.880%, 12/15/1998 5,130,592 Total 24,172,125 Total Corporate Notes 110,936,118
(a) Government Agencies-13.1% Federal Farm Credit Bank-0.1% 500,000 5.430%, 11/16/1998 484,992 Federal Home Loan Bank-6.3% 20,000,000 5.508%, 4/1/1999 19,988,068 Federal National Mortgage Association-0.4% 1,250,000 5.253%, 5/25/1999 1,248,737 Student Loan Marketing Association-6.3% 20,100,000 5.263% - 5.333%, 9/28/1998 - 3/7/2001 20,077,921 Total Government Agencies 41,799,718
Riggs Prime Money Market Fund
Principal Amount Value (a) Notes - Variable-20.7% Asset-Backed Securities-3.1% $10,000,000 Asset Backed Security Investment Trust, 5.688%, 5/13/1998 $10,000,000 BankingN4.1% 13,000,000 U.S. Bank, NA, Minneapolis, 5.526%, 5/18/1998 12,995,183 FinanceN10.4% 15,000,000 Bankers Trust Co., New York, 5.648%, 6/1/1998 14,997,435 2,000,000 Bear Stearns Cos., Inc., (Series B), 5.710%, 5/11/1998 2,000,597 10,000,000 Morgan Stanley, Dean Witter & Co., 5.788%, 6/13/1998 10,000,000 6,000,000 PHH Corp., 5.646%, 5/26/1998 5,999,998 Total 32,998,030 Finance - InsuranceN3.1% 10,000,000 Allstate Life Insurance Co., GIC, 5.816%, 5/1/1998 10,000,000 Total Notes - Variable 65,993,213 (b) Repurchase Agreements-1.9% 1,982,000 Dean Witter Reynolds, Inc., 5.470%, dated 4/30/1998, due 5/1/1998 1,982,000 1,982,000 Donaldson, Lufkin and Jenrette Securities Corp., 5.500%, dated 4/30/1998, due 5/1/1998 1,982,000 1,982,000 Prudential Securities, Inc., 5.470%, dated 4/30/1998, due 5/1/1998 1,982,000 Total Repurchase Agreements 5,946,000 Total Investments (at amortized cost)(c) $315,792,731
(a) Current rate and next reset date shown. (b) The repurchase agreements are fully collateralized by U.S. Treasury obligations based on market prices at the date of the portfolio. (c) Also represents cost for federal tax purposes. Note: The categories of investments are shown as a percentage of net assets ($318,630,060) at April 30, 1998. The following acronym is used throughout this portfolio: GIC -- Guaranteed Investment Contract (See Notes which are an integral part of the Financial Statements) STATEMENT OF ASSETS AND LIABILITIES Riggs Prime Money Market Fund April 30, 1998
Assets: Total investments in securities, at amortized cost and value $315,792,731 Cash 116,371 Income receivable 3,788,281 Receivable for shares sold 28,063 Total assets 319,725,446 Liabilities: Payable for shares redeemed $ 31,406 Income distribution payable 1,011,687 Accrued expenses 52,293 Total liabilities 1,095,386 Net Assets for 318,934,074 shares outstanding $318,630,060 Net Assets Consist of: Paid in capital $318,937,478 Undistributed net investment income 578,296 Accumulated net realized loss on investments (885,714) Total Net Assets $318,630,060 Net Asset Value, Offering Price and Redemption Proceeds Per Share: Class Y Shares: $318,121,889 \ 318,425,913 shares outstanding $1.00 Class R Shares: $508,171 \ 508,161 shares outstanding $1.00
(See Notes which are an integral part of the Financial Statements) STATEMENT OF OPERATIONS Riggs Prime Money Market Fund Year Ended April 30, 1998
Investment Income: Interest $20,504,537 Expenses: Investment advisory fee $ 1,803,267 Administrative personnel and services fee 478,888 Custodian fees 30,761 Transfer and dividend disbursing agent fees and expenses 73,806 Trustees' fees 2,504 Auditing fees 14,940 Legal fees 1,321 Portfolio accounting fees 56,563 Distribution services feeNClass R Shares 30,652 Share registration costs 18,099 Printing and postage 8,336 Insurance premiums 4,516 Miscellaneous 8,606 Total expenses 2,532,259 Waivers and reimbursementsN Waiver of investment advisory fee $ (409,724) Waiver of distribution services feeNClass R Shares (1,307) Total waivers (411,031) Net expenses 2,121,228 Net investment income 18,383,309 Realized and Unrealized Gain (Loss) on Investments Net realized loss on investments (15,106) Change in net assets resulting from operations $18,368,203
(See Notes which are an integral part of the Financial Statements) STATEMENT OF CHANGES IN NET ASSETS Riggs Prime Money Market Fund
Year Ended April 30, 1998 1997 Increase (Decrease) in Net Assets: OperationsN Net investment income $ 18,383,309 $ 19,498,561 Net realized (loss)/gain on investments ($4,102 and $14,610 net loss, respectively, as computed for federal tax purposes) (15,106) 2,503 Change in net assets resulting from operations 18,368,203 19,501,064 Distributions to ShareholdersN Distributions from net investment income Class Y Shares (18,106,563) (19,005,740) Class R Shares (276,746) (495,896) Change in net assets resulting from distributions to shareholders (18,383,309) (19,501,636) Share TransactionsN Proceeds from sale of shares 1,668,483,944 1,493,105,503 Net asset value of shares issued to shareholders in payment of distributions declared 6,222,769 6,512,524 Cost of shares redeemed (1,754,361,234) (1,469,070,241) Change in net assets resulting from share transactions (79,654,521) 30,547,786 Change in net assets (79,669,627) 30,547,214 Net Assets: Beginning of period 398,299,687 367,752,473 End of period (including undistributed net investment income of $578,296 and $578,296, respectively) $ 318,630,060 $ 398,299,687
(See Notes which are an integral part of the Financial Statements) FINANCIAL HIGHLIGHTS Riggs Prime Money Market Fund Class Y Shares (formerly, Class A Shares)
(For a share outstanding throughout each period) Year Ended April 30, 1998 1997 1996 1995 1994 Net asset value, beginning of period $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 Income from investment operations Net investment income 0.05 0.05 0.05 0.047 0.03 Net realized loss on investments -- -- -- (0.003) -- Total from investment operations 0.05 0.05 0.05 0.044 0.03 Less distributions Distributions from net investment income (0.05) (0.05) (0.05) (0.047) (0.03) Capital contribution -- -- -- 0.003 -- Net asset value, end of period $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 Total return (a) 5.22% 5.09% 5.50% 4.84%(b) 3.08% Ratios to average net assets Expenses 0.58% 0.51% 0.51% 0.44% 0.43% Net investment income 5.11% 5.00% 5.26% 4.72% 3.02% Expense reimbursement/waiver (c) 0.11% 0.17% 0.19% 0.24% 0.28% Supplemental data Net assets, end of period (000 omitted) $318,122 $372,037 $367,742 $284,059 $334,765
(a) Based on net asset value, which does not reflect the sales charge or contingent deferred sales charge, if applicable. (b) Total return would have remained at 4.84% absent the capital contribution by Riggs National Corp. (c) This voluntary expense decrease is reflected in both the expense and net investment income ratios shown above. (See Notes which are an integral part of the Financial Statements) FINANCIAL HIGHLIGHTS Riggs Prime Money Market Fund Class R Shares (formerly, Class B Shares)
(For a share outstanding throughout each period) Year Ended April 30, 1998 1997 1996(a) Net asset value, beginning of period $ 1.00 $ 1.00 $ 1.00 Income from investment operations Net investment income 0.05 0.05 0.02 Less distributions Distributions from net investment income (0.05) (0.05) (0.02) Net asset value, end of period $ 1.00 $ 1.00 $ 1.00 Total return (b) 4.92% 4.57% 0.74% Ratios to average net assets Expenses 1.00% 1.01% 1.07%* Net investment income 4.51% 4.58% 4.58%* Expense reimbursement/waiver (c) 0.18% 0.17% 0.19%* Supplemental data Net assets, end of period (000 omitted) $ 508 $26,263 $ 10
* Computed on an annualized basis. (a) Reflects operations for the period from December 12, 1995 (date of initial public investment) to April 30, 1996. (b) Based on net asset value, which does not reflect the sales charge or contingent deferred sales charge, if applicable. (c) This voluntary expense decrease is reflected in both the expense and net investment income ratios shown above. (See Notes which are an integral part of the Financial Statements) PORTFOLIO OF INVESTMENTS Riggs U.S. Government Securities Fund (formerly, RIMCO MONUMENT BOND FUND) APRIL 30, 1998
Principal Amount Value Corporate BondsN2.9% FinanceN2.9% $1,000,000 EQCC Home Equity Loan Trust 1997-3, Class A8, 6.41%, 12/15/2004 $ 995,530 Total Corporate Bonds (identified cost $999,844) 995,530 Government AgenciesN35.2% Federal Home Loan Mortgage CorporationN2.7% 620,000 6.79%, 5/24/2001 626,336 321,237 6.75%, 1/15/2018 321,324 Total 947,660 Federal National Mortgage AssociationN9.7% 1,000,000 8.50%, 2/1/2005 1,042,510 1,253,538 7.50%, 6/1/2012 1,289,578 669,382 9.50%, 6/25/2018 718,822 261,639 9.50%, 7/25/2019 284,276 Total 3,335,186 Government National Mortgage AssociationN22.8% 2,892,230 7.50%, 10/15/2027 2,972,663 2,284,044 8.00%, 10/15/2027 2,370,404 2,512,801 7.00%, 8/15/2027 2,544,990 Total 7,888,057 Total Government Agencies (identified cost $12,112,769) 12,170,903 U.S. Treasury ObligationsN59.8% U.S. Treasury BondsN17.3% 2,771,000 6.25%, 8/15/2023 2,850,251 2,950,000 6.50%, 11/15/2026 3,143,078 Total 5,993,329 U.S. Treasury Notes N42.5% 10,300,000 5.50%, 3/31/2003 10,235,728 2,400,000 5.75%, 10/31/2002 2,406,048 720,000 6.125%, 8/15/2007 739,476 1,249,000 6.50%, 5/15/2005 1,303,755 Total 14,685,007 Total U.S. Treasury Obligations (identified cost $20,523,430) 20,678,336 (a) Repurchase AgreementsN2.8% 975,000 Donaldson, Lufkin and Jenrette Securities Corp., 5.50%, dated 4/30/1998, due 5/1/1998 (at amortized cost) 975,000 Total Investments (identified cost $34,611,043)(b) $34,819,769
(a) The repurchase agreement is fully collateralized by U.S. Treasury obligations based on market prices at the date of the portfolio. (b) The cost of investments for federal tax purposes amounts to $34,625,645. The net unrealized appreciation/depreciation of investments on a federal tax basis amounts to $194,124 which is comprised of $281,103 appreciation and $86,979 depreciation at April 30, 1998. Note: The categories of investments are shown as a percentage of net assets ($34,552,696) at April 30, 1998. (See Notes which are an integral part of the Financial Statements) STATEMENT OF ASSETS AND LIABILITIES Riggs U.S. Government Securities Fund (formerly, RIMCO MONUMENT BOND FUND) APRIL 30, 1998
Assets: Total investments in securities, at value (identified cost $34,611,043 and tax cost $34,625,645) $34,819,769 Cash 330 Income receivable 326,531 Receivable for shares sold 92,501 Total assets 35,239,131 Liabilities: Payable for investments purchased $ 501,972 Payable for shares redeemed 25,426 Income distribution payable 149,343 Accrued expenses 9,694 Total liabilities 686,435 Net Assets for 3,536,121 shares outstanding $34,552,696 Net Assets Consist of: Paid in capital $37,057,589 Net unrealized appreciation of investments 208,726 Accumulated net realized loss on investments (2,713,619) Total Net Assets $34,552,696 Net Asset Value and Redemption Proceeds Per Share: ($34,552,696 O 3,536,121 shares outstanding) $9.77 Offering Price Per Share (100/95.25 of $9.77)* $10.26 *See "What Shares Cost" in the Prospectus.
(See Notes which are an integral part of the Financial Statements) STATEMENT OF OPERATIONS Riggs U.S. Government Securities Fund (formerly, RIMCO MONUMENT BOND FUND) YEAR ENDED APRIL 30, 1998
Investment Income: Interest $2,200,204 Expenses: Investment advisory fee $ 246,668 Administrative personnel and services fee 48,888 Custodian fees 2,796 Transfer and dividend disbursing agent fees and expenses 30,436 Trustees' fees 1,102 Auditing fees 15,040 Legal fees 3,001 Portfolio accounting fees 28,622 Share registration costs 10,678 Printing and postage 5,094 Insurance premiums 2,250 Miscellaneous 5,165 Total expenses 399,740 Waiver of investment advisory fee (131,556) Net expenses 268,184 Net investment income 1,932,020 Realized and Unrealized Gain (Loss) on Investments: Net realized gain on investments 933,219 Net change in unrealized appreciation of investments 349,287 Net realized and unrealized gain on investments 1,282,506 Change in net assets resulting from operations $3,214,526 (See Notes which are an integral part of the Financial Statements)
STATEMENT OF CHANGES IN NET ASSETS Riggs U.S. Government Securities Fund (formerly, RIMCO MONUMENT BOND FUND)
Year Ended April 30, 1998 1997 Increase (Decrease) in Net Assets: OperationsN Net investment income $ 1,932,020 $ 2,165,890 Net realized gain (loss) on investments ($843,130 net gain and $349,287 net loss, respectively, as computed for federal tax purposes) 933,219 (526,090) Net change in unrealized appreciation/depreciation of investments 349,287 72,263 Change in net assets resulting from operations 3,214,526 1,712,063 Distributions to ShareholdersN Distributions from net investment income (1,973,265) (2,124,645) Share TransactionsN Proceeds from sale of shares 12,504,323 6,128,321 Net asset value of shares issued to shareholders in payment of distributions declared 348,824 345,771 Cost of shares redeemed (11,370,863) (25,150,919) Change in net assets resulting from share transactions 1,482,284 (18,676,827) Change in net assets 2,723,545 (19,089,409) Net Assets: Beginning of period 31,829,151 50,918,560 End of period (including undistributed net investment income of $0 and $41,245, respectively) $ 34,552,696 $ 31,829,151
(See Notes which are an integral part of the Financial Statements) FINANCIAL HIGHLIGHTS Riggs U.S. Government Securities Fund (formerly, RIMCO Monument Bond Fund) Class R Shares
(For a share outstanding throughout each period) Year Ended April 30, 1998 1997 1996 1995 1994 Net asset value, beginning of period $ 9.41 $ 9.47 $ 9.35 $ 9.46 $ 10.40 Income from investment operations Net investment income 0.56 0.60 0.59 0.56 0.53 Net realized and unrealized gain (loss) on investments 0.37 (0.07) 0.12 (0.11) (0.38) Total from investment operations 0.93 0.53 0.71 0.45 0.15 Less distributions Distributions from net investment income (0.57) (0.59) (0.59) (0.56) (0.53) Distributions from net realized gain N N N N (0.56) Total distributions (0.57) (0.59) (0.59) (0.56) (1.09) Net asset value, end of period $ 9.77 $ 9.41 $ 9.47 $ 9.35 $ 9.46 Total return (a) 10.14% 5.79% 7.60% 5.01% 1.10% Ratios to average net assets Expenses 0.82% 0.87% 0.80% 0.80% 0.68% Net investment income 5.87% 6.36% 6.04% 6.06% 5.15% Expense reimbursement/waiver (b) 0.40% 0.40% 0.40% 0.40% 0.48% Supplemental data Net assets, end of period (000 omitted) $34,521 $31,829 $50,919 $46,820 $47,552 Portfolio turnover 175% 171% 128% 262% 344%
(a) Based on net asset value, which does not reflect the sales charge or contingent deferred sales charge, if applicable. (b) This voluntary expense decrease is reflected in both the expense and net investment income ratios shown above. (See Notes which are an integral part of the Financial Statements) PORTFOLIO OF INVESTMENTS Riggs Stock Fund April 30, 1998
Shares Value Common StocksN96.5% Basic MaterialsN4.4% 31,255 Nucor Corporation $1,873,347 42,315 USX-U.S. Steel Group, Inc. 1,655,574 28,530 Weyerhaeuser Co. 1,644,041 Total 5,172,962 Capital GoodsN8.1% 35,155 Ingersoll-Rand Co. 1,619,327 27,380 Sundstrand Corp. 1,890,931 26,535 TRW, Inc. 1,401,380 15,175 Textron, Inc. 1,187,444 20,740 United Technologies Corp. 2,041,594 51,485 U.S. Industries, Inc. 1,396,531 Total 9,537,207 Consumer Non-DurablesN9.0% 50,935 Fort James Corp. 2,527,649 47,080 Philip Morris Cos., Inc. 1,756,673 30,270 Quaker Oats Co. 1,574,040 35,655 R.J.R. Nabisco, Inc., Class A 1,704,755 15,395 RJR Nabisco Holdings Corp. 428,173 33,845 Unilever N.V., ADR 2,525,683 Total 10,516,973 Consumer ServicesN6.0% 39,155 (a) AccuStaff, Inc. 1,404,686 56,110 (a) Cendant Corp. 1,402,750 37,340 Cracker Barrel Old Country Store 1,372,245 51,740 Hilton Hotels Corp. 1,652,446 17,145 Tribune Co. 1,131,570 Total 6,963,697 Electronic TechnologyN14.1% 64,020 (a) Bay Networks, Inc. 1,500,469 17,830 (a) Cisco Systems, Inc. 1,306,048 21,865 Compaq Computer Corp. 613,587 30,025 (a) EMC Corp. Mass 1,384,903 26,445 Intel Corp. 2,137,087 20,575 International Business Machines Corp. 2,384,128 21,935 Philips Electronics N.V., ADR 1,974,150 31,410 (a) Storage Technology Corp. 2,652,182 23,055 Xerox Corp. 2,616,743 Total 16,569,297
EnergyN10.8% 13,315 British Petroleum Co. PLC, ADR 1,258,268 26,245 Coastal Corp. 1,874,877 39,925 Halliburton Co. 2,195,875 28,050 Mobil Corp. 2,215,950
Riggs Stock Fund
Shares Value Common StocksNcontinued EnergyNcontinued 19,485 Schlumberger Ltd. $1,614,819 37,040 Texaco, Inc. 2,277,960 31,250 USX Corp. 1,119,141 Total 12,556,890 FinancialN13.6% 30,585 Ahmanson (H.F.) & Co. 2,332,106 24,210 American Express Co. 2,469,420 14,800 BankAmerica Corp. 1,258,000 17,055 BankBoston Corp. 1,840,874 4,635 Bankers Trust New York Corp. 598,494 40,170 First Union Corp. 2,425,264 10,660 Hartford Financial Services Group, Inc. 1,180,595 48,210 Provident Cos., Inc. 1,883,203 46,260 SLM Holding Corp. 1,974,724 Total 15,962,680 HealthcareN6.1% 59,190 Columbia/HCA Healthcare Corp. 1,949,571 66,645 (a) Humana, Inc. 1,799,415 18,570 Merck & Co., Inc. 2,237,685 41,319 (a) Vencor, Inc. 1,120,778 Total 7,107,449 Industrial ServicesN2.3% 24,695 Fluor Corp. 1,166,839 13,590 Laidlaw, Inc. 189,411 27,915 (a) USA Waste Services, Inc. 1,369,580 Total 2,725,830 Retail TradeN8.0% 43,165 American Stores Co. 1,035,960 61,280 (a) Office Depot, Inc. 2,029,900 65,200 (a) Safeway, Inc. 2,493,900 23,045 Sears, Roebuck & Co. 1,366,857 55,485 TJX Cos., Inc. 2,455,211 Total 9,381,828 TechnologyN0.5% 10,095 Computer Associates International, Inc. 591,188 TransportationN4.4% 8,285 (a) AMR Corp. 1,262,427
14,135 Delta Air Lines, Inc. 1,643,194 25,730 (a) UAL Corp. 2,243,334 Total 5,148,955 UtilitiesN9.2% 33,990 AT&T Corp. 2,041,524 22,940 Ameritech Corp. 976,384 20,305 Columbia Gas System, Inc. 1,649,781
Riggs Stock Fund 38,400 Edison International 1,144,800 17,980 FPL Group, Inc. 1,115,883 Shares Value Common StocksNcontinued UtilitiesNcontinued 37,775 GPU, Inc. $1,496,833 19,405 GTE Corp. 1,133,980 28,510 SBC Communications, Inc. 1,181,382 Total 10,740,567 Total Common Stocks (identified cost $85,378,589) 112,975,523 (b) Repurchase AgreementsN3.5% 4,129,000 Donaldson, Lufkin and Jenrette Securities Corp., 5.50%, dated 4/30/1998, due 5/1/1998 4,129,000 Total Investments (identified cost $89,507,589 )(c) $117,104,523
(a) Non-income producing security. (b) The repurchase agreement is fully collateralized by U.S. Treasury obligations based on market prices at the date of the portfolio. (c) The cost of investments for federal tax purposes amounts to $89,668,415. The net unrealized appreciation of investments on a federal tax basis amounts to $27,436,108 which is comprised of $28,477,060 appreciation and $1,040,952 depreciation at April 30, 1998. Note: The categories of investments are shown as a percentage of net assets ($117,115,334) at April 30, 1998. The following acronyms are used throughout this portfolio: ADR - American Depository Receipt PLC - Public Limited Company (See Notes which are an integral part of the Financial Statements) STATEMENT OF ASSETS AND LIABILITIES Riggs Stock Fund April 30, 1998
Assets: Total investments in securities, at value (identified cost $89,507,589 and tax cost $89,668,415) $117,104,523 Cash 1,972 Income receivable 85,857 Receivable for shares sold 27,127 Total assets 117,219,479 Liabilities: Payable for shares redeemed $ 85,318 Accrued expenses 18,827 Total liabilities 104,145 Net Assets for 7,069,524 shares outstanding $117,115,334 Net Assets Consist of: Paid in capital $ 79,468,358 Net unrealized appreciation of investments 27,596,934 Accumulated net realized gain on investments 9,970,370 Undistributed net investment income 79,672 Total Net Assets $117,115,334 Net Asset Value and Redemption Proceeds Per Share: ($117,115,334 O 7,069,524 shares outstanding) $16.57 Offering Price Per Share (100/94.25 of $16.57)* $17.58 * See "What Shares Cost" in the Prospectus.
(See Notes which are an integral part of the Financial Statements) STATEMENT OF OPERATIONS Riggs Stock Fund Year Ended April 30, 1998
Investment Income: Dividends $ 1,471,790 Interest 172,126 Total income 1,643,916 Expenses: Investment advisory fee $ 790,694 Administrative personnel and services fee 139,892 Custodian fees 8,811 Transfer and dividend disbursing agent fees and expenses 40,643 Trustees' fees 2,190 Auditing fees 15,159 Legal fees 2,660 Portfolio accounting fees 30,674 Share registration costs 14,835 Printing and postage 5,646 Insurance premiums 3,285 Miscellaneous 4,028 Total expenses 1,058,517 Waiver of investment advisory fee (78,554) Net expenses 979,963 Net investment income 663,953 Realized and Unrealized Gain (Loss) on Investments: Net realized gain on investments 23,430,065 Net change in unrealized appreciation of investments 10,177,213 Net realized and unrealized gain on investments 33,607,278 Change in net assets resulting from operations $34,271,231
(See Notes which are an integral part of the Financial Statements) STATEMENT OF CHANGES IN NET ASSETS Riggs Stock Fund
Year Ended April 30, 1998 1997 Increase (Decrease) in Net Assets: OperationsN Net investment income $ 663,953 $ 1,050,292 Net realized gain on investments ($23,589,130 and $13,717,613, respectively, as computed for federal tax purposes) 23,430,065 13,715,852 Net change in unrealized appreciation/depreciation 10,177,213 (2,163,305) Change in net assets resulting from operations 34,271,231 12,602,839 Distributions to ShareholdersN Distributions from net investment income (683,221) (1,013,053) Distributions from net realized gains (23,035,017) (13,232,044) Change in net assets resulting from distributions to shareholders (23,718,238) (14,245,097) Share TransactionsN Proceeds from sale of shares 36,671,637 23,284,614 Net asset value of shares issued to shareholders in payment of distributions declared 7,420,981 4,358,886 Cost of shares redeemed (26,672,024) (21,656,846) Change in net assets resulting from share transactions 17,420,594 5,986,654 Change in net assets 27,973,587 4,344,396 Net Assets: Beginning of period 89,141,747 84,797,351 End of period (including undistributed net investment income of $79,672 and $98,940, respectively) $117,115,334 $ 89,141,747
(See Notes which are an integral part of the Financial Statements) FINANCIAL HIGHLIGHTS Riggs Stock Fund Class R Shares
(For a share outstanding throughout each period) Year Ended April 30, 1998 1997 1996 1995 1994 Net asset value, beginning of period $ 15.41 $ 15.84 $ 12.69 $ 11.89 $ 10.46 Income from investment operations Net investment income 0.11 0.20 0.18 0.20 0.16 Net realized and unrealized gain on investments 5.20 2.28 4.00 1.39 1.44 Total from investment operations 5.31 2.48 4.18 1.59 1.60 Less distributions Distributions from net investment income (0.11) (0.20) (0.18) (0.19) (0.16) Distributions from net realized gain (4.04) (2.71) (0.85) (0.60) (0.01) Total distributions (4.15) (2.91) (1.03) (0.79) (0.17) Net asset value, end of period $ 16.57 $ 15.41 $ 15.84 $ 12.69 $ 11.89 Total return (a) 39.68% 16.34% 33.73% 14.16% 15.28% Ratios to average net assets Expenses 0.93% 0.91% 0.96% 0.98% 1.00% Net investment income 0.63% 1.26% 1.26% 1.66% 1.36% Expense reimbursement/waiver (b) 0.07% 0.12% 0.12% 0.14% 0.20% Supplemental data Net assets, end of period (000 omitted) $117,115 $89,142 $84,797 $66,019 $58,597 Average commission rate paid (c) $ 0.0668 $0.0619 $0.0687 N N Portfolio turnover 94% 75% 81% 46% 89%
(a) Based on net asset value, which does not reflect the sales charge or contingent deferred sales charge, if applicable. (b) This voluntary expense decrease is reflected in both the expense and net investment income ratios shown above. (c) Represents total commissions paid on portfolio securities divided by total portfolio shares purchased or sold on which commissions were charged. This disclosure is required for fiscal years beginning on or after September 1, 1995. (See Notes which are an integral part of the Financial Statements) PORTFOLIO OF INVESTMENTS Riggs Small Company Stock Fund (formerly, RIMCO Monument Small Capitalization Equity Fund) April 30, 1998
Shares Value Common StocksN91.9% Basic Materials N4.2% 27,665 Calgon Carbon Corp. $ 335,438 39,620 (a) JLM Industries, Inc. 445,725 7,615 Medusa Corp. 468,323 18,700 (a) Quaker Fabric Corp. 535,288 29,400 (a) Synthetic Industries, Inc. 672,525 Total 2,457,299 Capital GoodsN7.6% 51,275 (a) Group Maintenance America Corp. 826,809 41,820 (a) ITEQ, Inc. 533,205 9,630 Kuhlman Corp. 471,870 44,557 (a) Middleby Corp. 356,456 42,130 (a) Trident International, Inc. 726,743 17,925 (a) Zebra Technologies Co., Class A 694,594 18,652 Zurn Industries, Inc. 804,368 Total 4,414,045 Consumer Non-DurablesN3.7% 22,775 Flowers Industries, Inc. 486,816 41,550 (a) Ralcorp Holdings, Inc. 825,806 14,225 (a) Suiza Foods Corp. 842,831 Total 2,155,453 Consumer ServicesN9.0% 18,280 (a) Budget Group, Inc., Class A 612,380 22,400 (a) Metamor Worldwide, Inc. 856,800 32,585 (a) Performance Food Group Co. 659,846 30,630 (a) ScanSource, Inc. 620,258 17,883 (a) Travel Services International, Inc. 659,436 9,870 (a) United Stationers, Inc. 623,044 28,670 (a) VDI Media 523,228 17,060 (a) Valassis Communication, Inc. 669,605 Total 5,224,597 Electronic TechnologyN6.6% 27,230 (a) ATMI, Inc. 759,036 28,705 (a) DSP Group, Inc. 606,393 10,000 (a) Etec Systems, Inc. 567,500 37,425 (a) Nimbus CD International, Inc. 399,980 18,410 (a) Sawtek, Inc. 559,204 27,615 (a) STB Systems, Inc. 395,240
44,816 (a) Telco System, Inc. 526,588 Total 3,813,941 EnergyN8.2% 27,525 (a) Gulfmark Offshore, Inc. 853,275 13,815 (a) Key Energy Group, Inc. 258,168 51,035 (a) Miller Exploration Co. 421,039
Riggs Small Company Stock Fund (formerly, RIMCO Monument Small Capitalization Equity Fund)
Shares Value Common StocksNcontinued EnergyNcontinued 30,290 (a) National-Oilwell, Inc. $ 1,149,127 42,825 (a) Newpark Resources, Inc. 1,030,477 43,740 (a) Patterson Energy Inc. 612,360 22,786 (a) Swift Energy Co. 454,296 Total 4,778,742 FinancialN18.7% 22,376 Allied Capital Corp. 581,776 26,280 (a) Amresco, Inc. 952,650 21,050 Apartment Investment & Management Co., Class A 786,744 30,380 ESG, ADR 782,285 16,160 (a) FIRSTPLUS Financial Group, Inc. 783,760 19,020 (a) FPIC Insurance Group, Inc. 656,190 50,240 (a) Friedman, Billings, Ramsey Group, Inc., Class A 945,140 22,015 Hubco, Inc. 809,051 43,280 (a) Imperial Credit Commercial Mortgage Investment Corp. 624,855 31,200 John Alden Financial Corp. 682,500 26,880 Peoples Bancorp, Inc. 288,960 12,435 (a) Silicon Valley Bancshares 811,384 26,010 Sirrom Capital Corp. 777,049 12,700 Vesta Insurance Group, Inc. 719,138 16,122 Weingarten Realty Investors 687,200 Total 10,888,682 HealthcareN10.6% 40,180 (a) Dental Care Alliance, Inc. 582,610 15,310 Life Technologies, Inc. 535,850 9,080 (a) Lincare Holdings, Inc. 736,615 25,625 (a) Maxxim Medical, Inc. 669,453 36,645 (a) Paragon Health Network, Inc. 684,803 32,705 (a) Respironics, Inc. 545,765 8,955 (a) Steris Corp. 526,666 43,875 (a) Sun Healthcare Group, Inc. 734,906 22,915 (a) Trigon Healthcare, Inc. 696,043 14,335 (a) United Payors & United Providers, Inc. 444,385 Total 6,157,096 RetailN10.3%
25,465 (a) Finish Line, Inc., Class A 630,259 27,930 (a) Gadzooks, Inc. 733,163 32,005 (a) Goody's Family Clothing, Inc. 1,584,248 50,715 (a) Just For Feet, Inc. 1,115,730 14,855 (a) Pacific Sunwear of California 655,477 48,880 (a) PetSmart, Inc. 574,340 48,575 (a) Syms Corp. 719,517 Total 6,012,734
Riggs Small Company Stock Fund (formerly, RIMCO Monument Small Capitalization Equity Fund)
Technology ServicesN4.8% 108,875 (a) Compucom System, Inc. 816,563 29,855 (a) Inacom Corp. 1,069,175 Shares or Principal Amount Value Common StocksNcontinued Technology ServicesNcontinued 39,910 (a) Savior Technology Group, Inc. $ 426,538 46,693 (a) The A Consulting Team, Inc. 493,195 Total 2,805,471 TransportationN7.1% 13,525 (a) Atlantic Coast Airlines, Inc. 765,008 33,350 Comair Holdings, Inc. 910,872 21,500 (a) Mesaba Holdings, Inc. 712,188 20,600 (a) Ryanair Holdings PLC, ADR 790,525 14,680 SkyWest, Inc. 594,540 47,124 (a) Trailer Bridge, Inc. 376,992 Total 4,150,125 UtilitiesN1.1% 23,240 UGI Corp. 644,910 Total Common Stocks (identified cost $41,846,705) 53,503,095 (b) Repurchase AgreementN7.9% $4,587,000 Donaldson, Lufkin and Jenrette Securities Corp., 5.50%, dated 4/30/1998, due 5/1/1998 (at amortized cost) 4,587,000 Total Investments (identified cost $46,433,705)(c) $58,090,095
(a) Non-income producing security. (b) The repurchase agreement is fully collateralized by U.S. Treasury obligations based on market prices at the date of the portfolio. (c) The cost of investments for federal tax purposes amounts to $46,592,522. The net unrealized appreciation/depreciation of investments on a federal tax basis amounts to $11,497,573 which is comprised of $12,525,099 appreciation and $1,027,526 depreciation at April 30, 1998. Note: The categories of investments are shown as a percentage of net assets ($58,223,334) at April 30, 1998. The following acronyms are used throughout this portfolio: ADR - American Depository Receipt PLC - Public Limited Company (See Notes which are an integral part of the Financial Statements) STATEMENT OF ASSETS AND LIABILITIES Riggs Small Company Stock Fund (formerly, RIMCO Monument Small Capitalization Equity Fund) April 30, 1998
Assets: Total investments in securities, at value (identified $46,433,705 and tax cost $46,592,522) $58,090,095 Cash 596 Income receivable 2,284 Receivable for investments sold 896,938 Receivable for shares sold 295,832 Deferred organizational costs 12,304 Other assets 2,356 Total assets 59,300,405 Liabilities: Payable for investments purchased $ 998,602 Payable for shares redeemed 75,965 Accrued expenses 2,504 Total liabilities 1,077,071 Net Assets for 3,096,418 shares outstanding $58,223,334 Net Assets Consist of: Paid in capital $41,300,197 Net unrealized appreciation of investments 11,656,390 Accumulated net realized gain on investments 5,266,747 Total Net Assets $58,223,334 Net Asset Value and Redemption Proceeds Per Share: ($58,223,334 O 3,096,418 shares outstanding) $18.80 Offering Price Per Share (100/94.25 of $18.80)* $19.95 * See "What Shares Cost" in the Prospectus.
(See Notes which are an integral part of the Financial Statements) STATEMENT OF OPERATIONS Riggs Small Company Stock Fund (formerly, RIMCO Monument Small Capitalization Equity Fund) Year Ended April 30, 1998
Investment Income: Dividends $ 212,299 Interest 142,395 Total income 354,694 Expenses: Investment advisory fee $ 338,723 Administrative personnel and services fee 58,191 Custodian fees 3,909 Transfer and dividend disbursing agent fees and expenses 24,529 Trustees' fees 2,207 Auditing fees 16,307 Legal fees 1,483 Portfolio accounting fees 28,863 Share registration costs 13,313 Printing and postage 5,535 Insurance premiums 1,997 Miscellaneous 5,257 Total expenses 500,314 Waiver of investment advisory fee (36,697) Net expenses 463,617 Net operating loss (108,923) Realized and Unrealized Gain (Loss) on Investments: Net realized gain on investments 10,175,481 Net change in unrealized appreciation of investments 12,217,509 Net realized and unrealized gain on investments 22,392,990 Change in net assets resulting from operations $22,284,067 (See Notes which are an integral part of the Financial Statements)
STATEMENT OF CHANGES IN NET ASSETS Riggs Small Company Stock Fund (formerly, RIMCO Monument Small Capitalization Equity Fund)
Year Ended April 30, 1998 1997 Increase (Decrease) in Net Assets: OperationsN Net operating loss $ (108,923) $ (17,249) Net realized gain on investments ($10,181,542 and $3,506,193 respectively, as computed for federal tax purposes) 10,175,481 3,370,741 Net change in unrealized appreciation/depreciation 12,217,509 (4,671,477) Change in net assets resulting from operations 22,284,067 (1,317,985) Distributions to ShareholdersN Distributions from net realized gains (7,596,605) (1,336,383) Share TransactionsN Proceeds from sale of shares 23,389,601 14,668,375 Net asset value of shares issued to shareholders in payment of distributions declared 774,594 93,490 Cost of shares redeemed (8,405,450) (3,619,751) Change in net assets resulting from share transactions 15,758,745 11,142,114 Change in net assets 30,446,207 8,487,746 Net Assets: Beginning of period 27,777,127 19,289,381 End of period $58,223,334 $27,777,127
(See Notes which are an integral part of the Financial Statements) FINANCIAL HIGHLIGHTS Riggs Small Company Stock Fund (formerly, RIMCO Monument Small Capitalization Equity Fund) Class R Shares
(For a share outstanding throughout each period) Year Ended April 30, 1998 1997 1996 1995(a) Net asset value, beginning of period $ 12.80 $ 14.10 $ 10.43 $ 10.00 Income from investment operations Net investment income (0.04) (0.01) (0.02) 0.02 Net realized and unrealized gain (loss) on investments 9.23 (0.47) 4.05 0.41 Total from investment operations 9.19 (0.48) 4.03 0.43 Less distributions Distributions from net investment income - - (0.01) - Distributions from net realized gain on investments (3.19) (0.82) (0.35) - Total distributions (3.19) (0.82) (0.36) - Net asset value, end of period $ 18.80 $ 12.80 $ 14.10 $ 10.43 Total return (b) 77.85% (3.76%) 39.43% 4.30% Ratios to average net assets Expenses 1.09% 1.00% 1.14% 1.66%* Net investment income (0.26%) (0.07%) (0.13%) 0.98%* Expense reimbursement/waiver (c) 0.09% 0.46% 0.80% 1.54%* Supplemental data Net assets, end of period (000 omitted) $58,223 $27,777 $19,289 $ 7,609 Average commission rate paid (d) $0.0631 $0.0691 $0.0650 - Portfolio turnover 108% 93% 70% 8%
* Computed on an annualized basis. (a) Reflects operations for the period from February 27, 1995 (date of initial public investment) to April 30, 1995. (b) Based on net asset value, which does not reflect the sales charge or contingent deferred sales charge, if applicable. (c) This voluntary expense decrease is reflected in both the expense and net investment income ratios shown above. (d) Represents total commissions paid on portfolio securities divided by total portfolio shares purchased or sold on which commissions were charged. This disclosure is required for fiscal years beginning on or after September 1, 1995. (See Notes which are an integral part of the Financial Statements) COMBINED NOTES TO FINANCIAL STATEMENTS Riggs Funds April 30, 1998 (1) Organization Riggs Funds (the "Trust") is registered under the Investment Company Act of 1940, as amended (the "Act"), as an open-end management investment company. The Board of Trustees approved a change in the name of the Trust from RIMCOMonument Funds to Riggs Funds, the name of the Bond Fund to U.S. Government Securities Fund, and the name of the Small Capitalization Equity Fund to Small Company Stock Fund, effective July 1, 1998. The Trust consists of five diversified portfolios (individually referred to as the "Fund", or collectively as the "Funds") which are presented herein: Portfolio Name Investment Objective Riggs U.S. Treasury Money Market Fund To provide current income consistent with ("Treasury Fund") stability of principal and liquidity. Riggs Prime Money Market Fund To provide current income consistent with ("Prime Fund") stability of principal and liquidity. Riggs U.S. Government Securities Fund To achieve current income. ("U.S. Government Securities Fund") Riggs Stock Fund ("Stock Fund") To provide growth of capital and income. Riggs Small Company Stock Fund To provide long-term capital ("Small Company Fund") appreciation. Effective July 1, 1998, Prime Fund and Treasury Fund will offer two classes of shares, Class Y Shares and Class R Shares (formerly, Class A Shares and Class B Shares, respectively, for Prime Fund); U.S. Government Securities Fund will continue to issue one class of shares (to be designated as Class R Shares); and Stock Fund and Small Company Fund will offer two classes of shares, its existing class (to be designated as Class R Shares) and a new class (to be designated as Class B Shares). The assets of each portfolio are segregated and a shareholder's interest is limited to the portfolio in which shares are held. (2) Significant Accounting Policies The following is a summary of significant accounting policies consistently followed by the Funds in the preparation of their financial statements. These policies are in conformity with generally accepted accounting principles. Investment Valuations U.S. government securities, listed corporate bonds (other fixed income and asset-backed securities), and unlisted securities and private placement securities are generally valued at the mean of the latest bid and asked price as furnished by an independent pricing service. Listed equity securities (and investments in closed-end investment companies) are valued at the last sale price reported on a national securities exchange. For the money market Funds within the Trust, the use of the amortized cost method to value portfolio securities is in accordance with Rule 2a-7 under the Act. For fluctuating net asset value Funds within the Trust, short-term securities are valued at the prices provided by an independent pricing service. However, short-term securities purchased with remaining maturities of sixty days or less may be valued at amortized cost, which approximates fair market value. Repurchase Agreements It is the policy of the Funds to require the custodian bank to take possession, to have legally segregated in the Federal Reserve Book Entry System, or to have segregated within the custodian bank's vault, all securities held as collateral under repurchase agreement transactions. Additionally, procedures have been established by the Funds to monitor, on a daily basis, the market value of each repurchase agreement's collateral to ensure that the value of collateral at least equals the repurchase price to be paid under the repurchase agreement transaction. The Funds will only enter into repurchase agreements with banks and other recognized financial institutions, such as broker/dealers, which are deemed by the Funds' adviser to be creditworthy pursuant to the guidelines and/or standards reviewed or established by the Board of Trustees (the "Trustees"). Risks may arise from the potential inability of counterparties to honor the terms of the repurchase agreement. Accordingly, the Funds could receive less than the repurchase price on the sale of collateral securities. Investment Income, Expenses and Distributions Interest income and expenses are accrued daily. Bond premium and discount, if applicable, are amortized as required by the Internal Revenue Code, as amended (the "Code"). Dividend income and distributions to shareholders are recorded on the ex-dividend date. Income and capital gain distributions are determined in accordance with income tax regulations which may differ from generally accepted accounting priciples. These differences are primarily due to differing book/tax treatments of net operating loss and market discount amortization. The following reclassifications have been made to the financial statements. Riggs Funds
Increase (Decrease) Undistributed Accumulated Paid-In Net Investment Net Realized Fund Name Capital Income Gain Small Company Fund - $108,923 $(108,923)
Federal Taxes It is the Funds' policy to comply with the provisions of the Code applicable to regulated investment companies and to distribute to shareholders each year substantially all of their income. Accordingly, no provisions for federal tax are necessary. At April 30, 1998, the Prime Fund and U.S. Government Securities Fund, for federal tax purposes, had a capital loss carryforward of $876,105 and $2,733,203 respectively, which will reduce each Fund's taxable income arising from future net realized gains on investments, if any, to the extent permitted by the Code, and thus will reduce the amount of the distributions to shareholders which would otherwise be necessary to relieve the Prime Fund and U.S. Government Securities Fund of any liability for federal tax. Pursuant to the Code, such capital loss carryforward of the Prime Fund will expire 2002 ($836,919), 2003 ($20,474), 2005 ($14,610) and 2006 ($4,102). The capital loss carryforward of the U.S. Government Securities Fund will expire 2003 ($2,262,877), and 2005 ($470,326). Additionally, a net capital loss of $11,490 for the Prime Fund attributable to security transactions incurred after October 31, 1997, are treated as arising on May 1, 1998, the first day of the Fund's next taxable year. When-Issued and Delayed Delivery Transactions The Funds may engage in when-issued or delayed delivery transactions. The Funds record when-issued securities on the trade date and maintain security positions such that sufficient liquid assets will be available to make payment for the securities purchased. Securities purchased on a when-issued or delayed delivery basis are marked to market daily and begin earning interest on the settlement date. Deferred Expenses The costs incurred by each Fund with respect to registration of their shares in their first fiscal year, excluding the initial expense of registering their shares, have been deferred and are being amortized over a period not to exceed five years from each Fund's commencement date. Use of Estimates The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the amounts of assets, liabilities, expenses and revenues reported in the financial statements. Actual results could differ from those estimated. Other Investment transactions are accounted for on the trade date. (3) Shares of Beneficial Interest The Declaration of Trust permits the Trustees to issue an unlimited number of full and fractional shares of beneficial interest (without par value). Transactions in shares were as follows:
Treasury Fund Year Ended Year Ended Class Y Shares April 30, 1998 April 30, 1997 Shares sold 277,959,898 449,279,619 Shares issued to shareholders in payment dof distributions declared 1,500,215 860,699 Shares redeemed (303,046,901) (416,232,679) Net change resulting from Class Y Shares transactions (23,586,788) 33,907,639 Prime Fund Year Ended Year Ended Class Y Shares April 30, 1998 April 30, 1997 Shares sold 1,618,160,015 1,412,757,103 Shares issued to shareholders in payment of distributions declared 6,212,437 6,512,315 Shares redeemed (1,678,272,255) (1,414,974,408) Net change resulting from Class Y Shares transactions (53,899,803) 4,295,010
Riggs Funds
Prime Fund Year Ended Year Ended Class R Shares April 30, 1998 April 30, 1997 Shares sold 50,323,930 80,348,400 Shares issued to shareholders in payment of distributions declared 10,332 209 Shares redeemed (76,088,979) (54,095,833) Net change resulting from Class R Shares transactions (25,754,717) 26,252,776 Net change resulting from share transactions (79,654,520) 30,547,786 U.S. Government Small Securities Fund Stock Fund Company Fund Year Year Year Year Year Year Ended Ended Ended Ended Ended Ended April 30, April 30, April 30, April 30, April 30, April 30, Class R Shares 1998 1997 1998 1997 1998 1997 Shares sold 1,294,447 648,055 2,347,730 1,490,755 1,357,019 1,058,741 Shares issued to shareholders in payment of distributions declared 35,958 36,491 530,956 290,990 51,264 6,849 Shares redeemed (1,177,844) (2,679,358) (1,591,271) (1,352,718) (482,797) (262,516) Net change resulting from Class R Share transactions 152,561 (1,994,812) 1,287,415 429,027 925,486 803,074
(4) Investment Advisory Fee and Other Transactions with Affiliates Investment Advisory Fee Riggs Investment Management Corp., the Trust's investment adviser (the "Adviser"), receives for its services an annual investment advisory fee based on a percentage of each Fund's average daily net assets (see below). The Adviser may voluntarily choose to waive a portion of its fee. The Adviser can modify or terminate this voluntary waiver at any time at its sole discretion. Fund Annual Rate Treasury Fund 0.50% Prime Fund 0.50% U.S. Government Securities Fund 0.75% Stock Fund 0.75% Small Company Fund 0.80% Administrative Fee Federated Administrative Services ("FAS") provides the Trust with certain administrative personnel and services (including certain legal, fund accounting and transfer agency services). The FAS fee is based on the level of average aggregate net assets of the Trust for the period. Distribution Services Fee Prime Fund has adopted a Distribution Plan (the "Plan") pursuant to Rule 12b-1 under the Act. Under the terms of the Plan, effective July 1, 1998, Class R Shares of Treasury Fund, Prime Fund, U.S. Government Securities Fund, Stock Fund and Small Company Fund, and Class B Shares of Stock Fund and Small Company Fund will compensate Federated Securities Corp. ("FSC"), the principal distributor, from the net assets of Class R Shares of the Prime Fund to finance activities intended to result in the sale of the Prime Fund's Class R Shares. The Plan provides that the Class R Shares of Prime Fund and Treasury Fund may incur distribution expenses up to 0.50%; Class R Shares of U.S. Government Securities Fund, Stock Fund and Small Company Fund may incur distribution expenses up to 0.25%; and Class B Shares of Stock Fund and Small Company Fund may incur distribution expenses of up to 0.75%; respectively, of the average daily net assets of the respective class of shares, annually, to compensate FSC. Shareholder Services Fee Under the terms of a Shareholder Services Agreement with FAS, effective July 1, 1998, each Fund will pay FAS up to 0.25% of average daily net assets of the Fund for the period. The fee is paid to FAS to finance certain services for shareholders and to maintain shareholder accounts. Riggs Funds Custodian Fees Riggs Bank N.A. is the Fund's custodian. The fee is based on the level of each Fund's average daily net assets for the period, plus out-of-pocket expenses. Organizational Expenses Organizational expenses were borne initially by FAS. The Funds have agreed to reimburse FAS for the organizational expenses during the five year period following each Fund's effective date. For the year ended April 30, 1998, the following amounts were paid pursuant to this agreement:
Organizational Expenses Paid Organizational for the Year Ended Fund Effective Date Expenses April 30, 1998 Small Company Fund February 6, 1995 $22,693 $6,303
General Certain of the Officers and Trustees of the Trust are Officers and Directors or Trustees of the above companies. (5) Investment Transactions Purchases and sales of investments, excluding short-term obligations, for the year ended April 30, 1998, were as follows:
Fund Purchases Sales U.S. Government Securities Fund $57,990,235 $54,566,270 Stock Fund 90,676,079 95,356,426 Small Company Fund 49,309,078 43,149,191
(6) Year 2000 (unaudited) Similar to other financial organizations, the Funds could be adversely affected if the computer systems used by the Fund's service providers do not properly process and calculate date-related information and data from and after January 1, 2000. The Fund's Adviser and Administrator are taking measures that they believe are reasonably designed to address the Year 2000 issue with respect to computer systems that they use and to obtain reasonable assurances that comparable steps are being taken by each of the Fund's other service providers. At this time, however, there can be no assurance that these steps will be sufficient to avoid any adverse impact to the funds. REPORT OF ERNST & YOUNG LLP, INDEPENDENT AUDITORS To the Board of Trustees and Shareholders of RIGGS FUNDS: (formerly, RIMCOMonument Funds) We have audited the accompanying statements of assets and liabilities, including the portfolio of investments, of Riggs Funds (comprising respectively, Riggs U.S. Treasury Money Market Fund, Riggs Prime Money Market Fund, Riggs U.S. Government Securities Fund (formerly, RIMCO Monument Bond Fund), Riggs Stock Fund, and Riggs Small Company Stock Fund (formerly, RIMCO Monument Small Capitalization Equity Fund)), as of April 30, 1998, and the related statements of operations for the year then ended, the statements of changes in net assets for each of the two years in the period then ended, and the financial highlights for each of the periods then ended. These financial statements and financial highlights are the responsibility of the Fund's management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits. We conducted our audits in accordance with generally accepted auditing standards. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. An audit 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 April 30, 1998, by correspondence with the custodian and broker or other appropriate auditing procedures where replies from brokers were not received. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of each of therespective portfolios constituting Riggs Funds, as indicated above, at April 30, 1998, the results of their operations for the year then ended, changes in theirnet assets for each of the two years in the period then ended, and financial highlights for each of the periods then ended, in conformity with generally accepted accounting principles. ERNST & YOUNG LLP Pittsburgh, Pennsylvania June 22, 1998 TRUSTEES John F. Donahue Thomas G. Bigley John T. Conroy, Jr. Nicholas P. Constantakis William J. Copeland James E. Dowd Lawrence D. Ellis, M.D. Edward L. Flaherty, Jr. Edward C. Gonzales Peter E. Madden John E. Murray, Jr. Wesley W. Posvar Marjorie P. Smuts OFFICERS John F. Donahue Chairman Edward C. Gonzales President and Treasurer J. Christopher Donahue Executive Vice President John W. McGonigle Executive Vice President and Secretary Joseph S. Machi Vice President and Assistant Treasurer Richard B. Fisher Vice President C. Grant Anderson Assistant Secretary Mutual funds are not bank deposits or obligations, are not guaranteed by any bank, and are not insured or guaranteed by the U.S.Egovernment, the Federal Deposit Insurance Corporation, the Federal Reserve Board, or any other government agency. Investment in mutual funds involves risk, including possible loss of principal. Although money market funds seeks to maintain a stable net asset value of $1.00 per share, there is no assurance that they will be able to do so. This report is authorized for distribution to prospective investors only when preceded or accompanied by the Funds' prospectus which contains facts concerning the Funds' objective and policies, management fees, expenses and other information. Cusip 76656A 104 Cusip 76656A 203 Cusip 76656A 302 Cusip 76656A 500 Cusip 76656A 609 Cusip 76656A 807 Cusip 76656A 401 2052603 (6/98) APPENDIX A. The graphic presentation here displayed consists of a line graph. The corresponding components of the line graph are listed in the upper left quadrant of the graph. The Class R Shares of Riggs U.S. Government Securities Fund (the "Fund"), based on a 3.50% sales load (and a 4.75% sales load effective 12/18/95), are represented by a solid line. The Lehman Brothers Government/Corporate Total Index (the "LBGCTI") is represented by a broken line. The line graph is a visual representation of a comparison of change in value of a $10,000 hypothetical investment in the Class R Shares of the Fund and the LBGCTI. The "x" axis reflects computation periods from 5/11/92 to 4/30/98. The "y" axis reflects the cost of the investment. The right margin reflects the ending value of the hypothetical investment in the Fund's Class R Shares, based on a 3.50% sales load (and a 4.75% sales load effective 12/18/95), as compared to the LBGCTI. The ending values were $14,518 and $15,986, respectively. B. The graphic presentation here displayed consists of a line graph. The corresponding components of the line graph are listed in the upper left quadrant of the graph. The Class R Shares of Riggs Stock Fund (the "Fund"), based on a 3.50% sales load (and a 5.75% sales load effective 12/18/95), are represented by a solid line. The Standard & Poor's 500 Index (the "S&P 500") is represented by a broken line. The line graph is a visual representation of a comparison of change in value of a $10,000 hypothetical investment in the Class R Shares of the Fund and the S&P 500. The "x" axis reflects computation periods from 5/11/92 to 4/30/98. The "y" axis reflects the cost of the investment. The right margin reflects the ending value of the hypothetical investment in the Fund's Class R Shares, based on a 3.50% sales load (and a 5.75% sales load effective 12/18/95), as compared to the S&P 500. The ending values were $29,466 and $31,014, respectively. C. The graphic presentation here displayed consists of a line graph. The corresponding components of the line graph are listed in the upper left quadrant of the graph. The Class R Shares of Riggs Small Company Stock Fund (the "Fund"), based on a 3.50% sales load (and a 5.75% sales load effective 12/18/95), are represented by a solid line. The Russell 2000 Index (the "Russell 2000") is represented by a broken line. The line graph is a visual representation of a comparison of change in value of a $10,000 hypothetical investment in the Class R Shares of the Fund and the Russell 2000. The "x" axis reflects computation periods from 2/27/95 to 4/30/98. The "y" axis reflects the cost of the investment. The right margin reflects the ending value of the hypothetical investment in the Fund's Class R Shares, based on a 3.50% sales load (and a 5.75% sales load effective 12/18/95), as compared to the Russell 2000. The ending values were $24,020 and $19,700, respectively. -----END PRIVACY-ENHANCED MESSAGE-----