PRESIDENT’S MESSAGE

Dear Investor:

I am pleased to present the Semi-Annual Report for the Riggs Funds—Class R and Class Y Shares—for the first half of the funds’ current fiscal year, which is the six-month reporting period ended October 31, 2002. It begins with an investment commentary by each portfolio manager, followed by a complete list of holdings and the financial statements for each fund.

The six-month reporting period saw continued positive returns for bonds. Stock prices continued to fall as world turmoil, corporate accounting scandals, and concern over the strength of the economy weakened investor sentiment. We urge you to read the investment commentary for a more in-depth review of the financial markets and management of your fund.

The following highlights summarize fund performance over the six-month reporting period:

Riggs Stock Fund

The six-month reporting period was a volatile one for the U.S. stock market. As a result, the fund’s diversified portfolio of high-quality, “household name” stocks produced a negative total return. The Class R Shares total return was (18.79)%, or (20.42)% adjusted for the 2% redemption fee.* The return was the result of a decline in net asset value. The Class Y Shares total return was (18.75)%, the result of a decline in net asset value.* The fund’s net assets totaled $37.1 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.** Reflecting the decline in values among small-company stocks, the total return for Class R Shares was (20.83)% or (22.41)% adjusted for the 2% redemption fee.* The return was due to a decline in net asset value. The return for Class Y Shares was (20.69)%, the result of a decline in net asset value.* At the end of the reporting period, the fund’s net assets totaled $32.3 million.

Riggs Large Cap Growth Fund

This fund is managed to help investors pursue capital appreciation by investing in a portfolio of the largest growth companies traded on U.S. stock markets. Class R Shares produced a total return of (6.75)%, or (8.61)% adjusted for the 2% redemption fee.* The return was due to decline in net asset value. Net assets in the fund totaled $10.2 million at the end of the reporting period.

Riggs U.S. Government Securities Fund

This fund’s government-focused bond portfolio paid Class R Share dividends totaling $0.24 per share. The Class R Shares net asset value increased from

$10.00 to $10.41. The dividends and net asset value increase resulted in a total return of 6.57%, or 4.57% adjusted for the 2% redemption fee.* Class Y Shares paid dividends totaling $0.25 per share, while net asset value increased from $10.00 to $10.41. As a result, Class Y Shares produced a total return of 6.70%. * The fund’s net assets totaled $77.7 million at the end of the reporting period.

Riggs Bond Fund

This fund is managed to help investors pursue a high level of current income through a portfolio of investment grade corporate bonds and government bonds. Class R Shares paid dividends totaling $0.28 per share, while the net asset value increased from $10.59 to $10.95. As a result, Class R Shares produced a total return of 6.50%, or 4.50% adjusted for the 2% redemption fee.* Net assets in the fund totaled $27.4 million at the end of the reporting period.

Riggs Intermediate Tax Free Bond Fund

Designed for tax-sensitive investors, this fund pursues a high level of income free of federal income tax through a portfolio of intermediate-term, investment grade municipal bonds.*** Class R Shares paid dividends totaling $0.20 per share, while net asset value increased by $0.18. As a result, Class R Shares produced a total return of 3.70%, or 1.70% adjusted for the 2% redemption fee.* Net assets in the fund totaled $53.4 million at the end of the reporting period.

Riggs Long Term Tax Free Bond Fund

This fund is also managed to help tax-sensitive investors pursue a high level of income free of federal income tax—through a portfolio of long-term, investment grade municipal bonds.*** Class R Shares paid dividends totaling $0.20 per share, while net asset value increased by $0.34. As a result, Class R Shares produced a total return of 5.25%, or 3.25% adjusted for the 2% redemption fee.* Net assets in the fund totaled $44.2 million at the end of the reporting period.

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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 portfolio of high quality money market securities paid dividends totaling $0.005 per share for Class Y Shares and $0.004 per share for Class R Shares over the reporting period.* The fund ended the reporting period with total net assets of $212.8 million.

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 through a portfolio of direct U.S. Treasury money market securities or repurchase agreements fully backed by U.S. Treasury securities.† The fund’s portfolio of U.S. Treasury money market securities paid dividends totaling $0.004 per share for Class Y Shares and $0.003 per share for Class R Shares over the reporting period.* Net assets in the fund totaled $81.9 million at the end of the reporting period.

Thank you for pursuing your financial goals through the professional management and diversification of the Riggs Funds. We’ll continue to keep you up-to-date on your progress.

Sincerely,

/s/ Peter J. Germain

Peter J. Germain

President

December 16, 2002

   * Past performance is no guarantee 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. Current performance information is available by calling 1-800-934-3883.

  ** Small company stocks may be less liquid and subject to greater price volatility than large capitalization stocks.

*** Income may be subject to the federal alternative minimum tax and state and local taxes.

   † An investment in money market funds is neither insured nor guaranteed by the Federal Deposit Insurance Corporation or any other government agency. Although the funds seek to preserve the value of your investment at $1.00 per share, it is possible to lose money by investing in the funds.

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INVESTMENT REVIEW

Riggs Stock Fund

Riggs Small Company Fund

Reports of corporate fraud, recession, war on terrorism, and the issue of disarmament of Iraq weighed heavily on the equity markets during the reporting period from May 1, 2002 through October 31, 2002. The Standard & Poor’s 500 Index (“S&P 500”)* and the Russell 2000 Index** lost 17.02% and 26.34%, respectively, over this period. This declining trend was marred with high intra-day volatility. All eyes were on the consumer, who has been supporting the economy, with investors watching for the first signs of falling confidence and lower spending. Consumer spending has been helped in part by rising home values and low mortgage rates, which encouraged homeowners to take out some of the equity in their homes through refinancing to boost their disposable income.

During the reporting period the consumer discretionary sector*** gave up most of its gains from earlier this year. Technology and telecommunication sectors rebounded sharply in October, following dismal performance for the prior six months. Across all market caps, consumer staples delivered the most consistent earnings and thus generated the best overall returns during the reporting period.

We believe that the stock market has become attractively priced with good upside potential assuming the earnings estimates, which have been brought down considerably, are achievable. Furthermore, investor sentiment is particularly despondent, creating the opportunity for positive surprises. Also, given the very low inventory-to-sales ratio, positive seasonal trends, high short interest, and portfolio re-balancing, even a modest inventory replenishment cycle or some positive news on the Iraq front, could provide sufficient economic strength and positive sentiment to generate strong equity returns in coming months.

For the reporting period, the Riggs Stock Fund (Class Y Shares) slightly underperformed its benchmark, the S&P 500, with a total return of (18.75)%. This relative performance was derived primarily from stock selection particularly within the utility sector, as we maintained sector weights close to those of the benchmark.

For the reporting period, the Riggs Small Company Stock Fund (Class Y Shares) significantly outperformed its benchmark, the Russell 2000 Index, with a total return of (20.69)%. This performance was primarily attributable to stock selections particularly within the technology, energy and healthcare sectors. In addition, the cash position that had accumulated from previous stock sales earlier this year cushioned some of the volatility.

Although the market has lost significant value over the past six months, there are positive signs which are now emerging such as an improving economy, attractive valuations, and monetary and fiscal stimulus. As the dispersion between growth and value stock performance continues to widen, we have been selectively adding some of the more reasonably priced growth stocks to the portfolios as visibility improves on corporate spending priorities. Our investment philosophy in managing both funds is to seek stocks selling at relatively attractive valuations and for which we believe earnings growth will prove sustainable. We emphasize companies that are (1) undergoing a significant restructuring, (2) introducing new products and services that are under-appreciated by the market, or (3) low cost suppliers or niche providers with dominant and/or growing market shares. We control risk in the portfolio by maintaining sector weights close to those of the benchmark and seek out performance through stock selection.

Riggs Large Cap Growth Fund

For the reporting period, May 1, 2002 to October 31, 2002, the Riggs Large Cap Growth Fund very significantly outperformed its benchmark by 10.27% with a total return of (6.75)% compared to a total return of (17.02)% for the S&P 500.

The six month period was marred by various stories of fraud, uncertainty over Iraq, and sluggish recovery thus posing a challenge to managing a growth fund. The fund’s out performance has largely been a result of stock selection and commitment to high quality growth firms combined with a rebalancing of the fund with investments in healthcare, consumer/retail, financial and industrial companies.

In challenging times such as these it is important to maintain a long-term investment focus. The markets move in cycles and every downswing has been followed by an upswing. We continue to take advantage of the market volatility and its inability to distinguish between growth and value stocks by adding more high quality growth companies to the portfolio at reasonable prices relative to trend-line earnings growth, particularly in the consumer discretionary, healthcare and technology sectors.

Riggs Bond Fund

Riggs U.S. Government Securities Fund

During the reporting period from May 1, 2002 to October 31, 2002 the economic data remained mixed. The employment statistics continued to languish while the consumer spending and housing numbers continued to indicate strength. While the sluggish payroll data received during the reporting period remains somewhat worrisome, the improvements in productivity should act as an offset to the traditional links between job formation and accompanying output and income gains. Nevertheless it is important to recognize that the overall unemployment rate of 5.6% is still extremely low by historical standards. On the inflation front, both the consumer price index (“CPI”) and personal products index continued to indicate that inflation hovers around 1.75%, however, a disconnect maybe forming considering the Commodity Research Bureau is up 20 through October. In lieu of these countervailing market conditions, the Federal Reserve Board (the “Fed”) maintained the federal funds target rate during the reporting period.

During the reporting period the yield curve steepened with the middle of the yield curve outperforming the wings. The Treasury and agency sectors were the best performing during the reporting period, while the mortgage and corporate sectors were the worst performing. Going forward, in our view, there is little or no relative value offered by interest rates at these levels, and as a result, we will continue to underweight our duration relative to our benchmarks.†

Riggs Intermediate Tax Free Fund

Riggs Long Term Tax Free Fund

During the reporting period from May 1, 2002 to October 31, 2002 the fixed income markets had to respond to a multitude of information from both the economy and the equity markets. The economic picture was mixed as the employment statistics continued to languish, while the consumer spending and housing numbers continued to indicate strength. This dichotomy led to market wide price volatility as expectations about future

3

growth changed with each economic release. In lieu of these market conditions the Fed maintained the federal funds target rate during the reporting period.

During the quarter, the tax exempt AAA yield curve steepened, with shorter maturities dropping more in yield than longer maturities. Hospital and transportation sector bonds were the best performing, while housing and industrial development revenue securities performed the worst. Going forward, there is enough uncertainty in the financial markets to keep the Fed on hold until at least sometime next year. As a result, we will maintain our current fixed income strategy of under weighting riskier sectors like hospitals and over weighting more secure areas like state general obligations and insured revenue securities.

Riggs U.S. Treasury Money Market Fund

Riggs Prime Money Market Fund

During the reporting period from May 1, 2002 to October 31, 2002, yields in the short-end of the curve continued to fall as the Fed maintained the federal funds target rate at a forty-one year low of 1.75%. Rates in the Treasury market are currently at historic lows. There remains a great deal of market uncertainty with business confidence low, household debt at record levels and geopolitical risks and corporate reporting concerns still a factor. The unemployment rate ended the period at 5.6%, but was expected to go higher, and consumer confidence is currently at the lowest level in nine years. The CPI is up just 1.5% year-over-year through October and the slow growth may help to keep inflation tame.

The average maturity of the Riggs U.S. Treasury Money Market Fund was shorter at 25 days due in part to the inverted yield curve in the front end of the Treasury market. The yield on the three-month Treasury bill was down 32 basis points to 1.44%, while the yield on the six-month Treasury bill was down 47 basis points to 1.41%. The yield on the two-year note fell 152 basis points to 1.67%. At the longer end of the market, the thirty-year bond was down 58 basis points to 4.99% leading to the continued widening in the yield curve. The spread between the two-year and thirty-year Treasurys went from +237 basis points to +332 basis points, a widening of almost 100 basis points. We will continue to look at the relationship of Treasury bills and notes versus repurchase agreements in order to provide the highest yield for the fund.

The average maturity of the Riggs Prime Money Market Fund was slightly longer at 59 days as we increased our exposure to callable agency paper throughout the reporting period. The steep yield curve and high volatility contributed to the yield advantage of callable agencies over bullets and therefore demand for these securities. Commercial paper issuance remains lower this year as companies like General Electric continue to extend their debt profiles by issuing longer-term debt rather than commercial paper. Yields in the commercial paper and federal agency market followed the Treasury market down, and yields in the short-end remained slightly inverted. The average seven-day yield for taxable money market funds ended the period at 1.21%, an all-time low in yield. We will continue to monitor the Fed’s expectations going forward and will focus on high quality corporate and commercial paper names along with Treasury and agency securities in order to enhance the yield of the Fund.

    * The S&P 500 Index is an unmanaged capitalization-weighted index of 500 stocks designed to measure performance of the broad domestic economy through changes in the aggregate market value of 500 stocks representing all major industries. The index is unmanaged, and investments cannot be made in an index.

  ** The Russell 2000 Index measures the performance of the 2,000 smallest companies in the Russell 3000 Index, which represents approximately 10% of the total market capitalization of the Russell 3000 Index. The index is unmanaged, and investments cannot be made in an index.

*** Funds that have a higher concentration of investments in a specific industry or sector, such as technology, may be subject to a higher degree of market risk than funds whose investments are more diversified.

    † Duration is a measure of a security’s price sensitivity to changes in interest rates. Securities with longer durations are more sensitive to changes in interest rates than securities of shorter durations.

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PORTFOLIO OF INVESTMENTS

Riggs Stock Fund

October 31, 2002 (unaudited)

Shares		Value
Common Stocks—98.5%
	Communications—3.9%
12,195	CenturyTel, Inc.	$	345,484
18,343	SBC Communications, Inc.		470,681
16,931	Verizon Communications, Inc.		639,314
	Total		1,455,479
	Consumer Durables—2.9%
5,975	Harley-Davidson, Inc.		312,493
20,490	Mattel, Inc.		376,196
11,980	Newell Rubbermaid, Inc.		388,392
	Total		1,077,081
	Consumer Non-Durables—8.3%
7,295	Anheuser-Busch Cos., Inc.		384,884
12,075	Avon Products, Inc.		585,517
5,080	International Flavors & Fragrances, Inc.		170,434
9,885	Kraft Foods, Inc., Class A		390,457
9,460	PepsiCo, Inc.		417,186
16,260	Philip Morris Cos., Inc.		662,595
5,365	Procter & Gamble Co.		474,534
	Total		3,085,607
	Consumer Services—3.0%
27,752	(1) Clear Channel Communications, Inc.		1,028,212
4,960	Darden Restaurants, Inc.		94,141
	Total		1,122,353
	Distribution Services—2.1%
2,450	AmerisourceBergen Corp.		174,317
12,465	McKesson Corp.		371,582
7,450	Sysco Corp.		236,016
	Total		781,915
	Electronic Technology—11.3%
30,270	(1) Cisco Systems, Inc.		338,419
17,990	(1) Dell Computer Corp.		514,694
38,205	Hewlett-Packard Co.		603,639
33,056	Intel Corp.		571,869
7,853	International Business Machines Corp.		619,916
7,360	(1) L-3 Communications Holdings, Inc.		345,920
18,395	(1) Micron Technology, Inc.		294,320
22,680	Nokia Oyj, ADR		376,942
1,920	(2) Northrop Grumman Corp.		198,010
15,850	(2) STMicroelectronics N.V.		311,769
	Total		4,175,498
	Energy—4.2%
7,526	BP p.l.c., ADR		289,375
31,753	Exxon Mobil Corp.		1,068,806

5

Riggs Stock Fund

Shares		Value
Common Stocks—continued
	Energy—continued
4,780	Royal Dutch Petroleum Co., ADR	$	204,488
	Total		1,562,669
	Finance—19.4%
16,915	American Express Co.		615,198
13,995	American International Group, Inc.		875,387
8,785	Bank of America Corp.		613,193
26,145	Citigroup, Inc.		966,058
14,722	Fannie Mae		984,313
16,450	Hartford Financial Services Group, Inc.		649,775
9,315	Marsh & McLennan Cos., Inc.		435,104
17,019	Mellon Financial Corp.		481,468
13,945	Sovereign Bancorp, Inc.		196,346
19,760	U.S. Bancorp		416,738
19,204	Wells Fargo & Co.		969,226
	Total		7,202,806
	Health Services—1.6%
8,795	HCA—The Healthcare Corp.		382,494
2,983	(1) Wellpoint Health Networks, Inc.		224,351
	Total		606,845
	Health Technology—11.3%
7,140	(1) Amgen, Inc.		332,438
15,243	(1) Genentech, Inc.		519,634
13,250	Johnson & Johnson		778,437
11,420	Medtronic, Inc.		511,616
28,212	Pfizer, Inc.		896,295
5,385	Pharmacia Corp.		231,555
10,485	Schering Plough Corp.		223,855
8,185	(1) St. Jude Medical, Inc.		291,468
11,505	Wyeth		385,418
	Total		4,170,716
	Industrial Services—1.4%
17,355	Halliburton Co.		280,804
7,275	(1) Noble Corp.		235,128
	Total		515,932
	Process Industries—3.1%
7,165	Air Products & Chemicals, Inc.		316,693
10,380	E.I. Du Pont de Nemours & Co.		428,175
11,135	International Paper Co.		388,946
	Total		1,133,814
	Producer Manufacturing—8.0%
18,835	Alcoa, Inc.		415,500
6,345	Avery Dennison Corp.		394,913
46,295	General Electric Co.		1,168,949
7,500	(1) Lear Corp.		274,125
9,675	Textron, Inc.		396,675

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Riggs Stock Fund

Shares or Principal Amount		Value
Common Stocks—continued
	Producer Manufacturing—continued
5,015	United Technologies Corp.	$	309,275
	Total		2,959,437
	Retail Trade—6.7%
38,990	Gap (The), Inc.		458,912
9,135	Lowe’s Cos., Inc.		381,204
25,550	(1) Office Depot, Inc.		367,665
12,925	Target Corp.		389,301
16,875	Wal-Mart Stores, Inc.		903,656
	Total		2,500,738
	Technology Services—6.3%
18,081	(1) Concord EFS, Inc.		258,197
27,090	(1) Microsoft Corp.		1,448,502
61,450	(1) Oracle Corp.		626,176
	Total		2,332,875
	Transportation—2.5%
24,890	Norfolk Southern Corp.		502,778
29,114	Southwest Airlines Co.		425,064
	Total		927,842
	Utilities—2.5%
3,990	(2) Consolidated Edison Co.		169,854
9,515	Duke Energy Corp.		194,962
73,895	(2) El Paso Corp.		572,686
	Total		937,502
	Total Common Stocks (identified cost $35,735,654)		36,549,109
(3) Repurchase Agreement—1.5%
$551,000	Repurchase agreement with PaineWebber, dated 10/31/2002 due 11/1/2002 at 1.84%, collateralized by U.S. Treasury obligations with various maturities to 2027 (repurchase proceeds $551,028) (cost of $551,000)		551,000
	Total Investments (identified cost $36,286,654)(4)	$	37,100,109

(1) Non-income producing security.

(2) Certain share amounts on loan to broker.

(3) The repurchase agreement is fully collateralized by U.S. Treasury obligations based on market prices at the date of the portfolio.

(4) The cost of investments for federal tax purposes amounts to $36,286,654. The net unrealized appreciation of investments on a federal tax basis amounts to $813,455 which is comprised of $4,045,701 appreciation and $3,232,246 depreciation at October 31, 2002.

Note:    The categories of investments are shown as a percentage of net assets ($37,108,024) at October 31, 2002.

The following acronym is used throughout this portfolio:

ADR—American Depositary Receipt

See Notes which are an integral part of the Financial Statements

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PORTFOLIO OF INVESTMENTS

Riggs Small Company Stock Fund

October 31, 2002 (unaudited)

Shares		Value
Common Stocks—88.4%
	Commercial Services—3.7%
13,251	(1) Cross Country, Inc.	$	163,517
27,715	Ikon Office Solutions, Inc.		196,222
9,575	(1) MAXIMUS, Inc.		195,138
28,965	Moore Corp. Ltd.		320,063
13,985	(1) SOURCECORP, Inc.		320,676
	Total		1,195,616
	Communications—0.4%
30,046	(1) General Communications, Inc., Class A		139,413
	Consumer Durables—5.6%
6,665	Ethan Allen Interiors, Inc.		213,613
9,360	(1) Fossil, Inc.		183,550
2,965	Harman International Industries, Inc.		166,040
17,595	(1) JAKKS Pacific, Inc.		232,958
4,293	M.D.C. Holdings, Inc.		161,159
7,635	(1) Monaco Coach Corp.		123,611
795	(1) NVR, Inc.		269,505
2,550	Polaris Industries, Inc.		160,624
10,515	(1)(2) The Nautilus Group, Inc.		144,476
5,525	(1)(2) Take-Two Interactive Software, Inc.		142,434
	Total		1,797,970
	Consumer Non-Durables—2.8%
7,270	(1)(2) American Italian Pasta Co., Class A		250,451
13,485	(1) Chiquita Brands International		165,056
8,720	(1) Hain Celestial Group, Inc.		124,958
10,320	(1) NBTY, Inc.		160,476
11,602	Wolverine World Wide, Inc.		186,908
	Total		887,849
	Consumer Services—6.6%
7,175	(2) Advanced Marketing Services, Inc.		125,204
25,325	(1) Boca Resorts, Inc., Class A		268,445
7,435	(2) CBRL Group, Inc.		174,202
44,536	CKE Restaurants, Inc.		180,371
12,126	(1) Information Holdings, Inc.		183,103
4,058	Media General, Inc., Class A		221,973
33,521	(1) Regent Communications, Inc.		202,802
7,520	(1) Sonic Corp.		174,990
69,700	(1)(2) Summit America Television, Inc.		182,614
16,671	(1) Triarc Cos., Inc.		400,104
	Total		2,113,808
	Distribution Services—4.3%
24,735	Owens & Minor, Inc.		364,099
3,230	(1) Performance Food Group Co.		120,124

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Riggs Small Company Stock Fund

Shares		Value
Common Stocks—continued
	Distribution Services—continued
7,140	(1) Priority Healthcare Corp., Class B	$	173,431
8,330	(1)(2) SCP Pool Corp.		237,405
10,475	(1) School Specialty, Inc.		253,285
10,130	(1) United Natural Foods, Inc.		246,159
	Total		1,394,503
	Electronic Technology—10.9%
4,107	(1) Alliant Techsystems, Inc.		247,036
29,815	(1) Axcelis Technologies, Inc.		160,405
7,920	(1) Benchmark Electronics, Inc.		176,299
7,385	(1)(2) Cymer, Inc.		185,511
4,600	(1) ESCO Technologies, Inc.		167,440
9,072	(1) Excel Technology, Inc.		167,469
3,450	(1) FLIR Systems, Inc.		163,288
24,215	(1) Fargo Electronics		223,989
26,206	GenCorp, Inc.		214,365
20,846	HEICO Corp., Class A		157,596
2,485	Inter-Tel, Inc.		67,169
21,490	Methode Electronics, Inc., Class A		197,493
36,413	(1) Mykrolis Corp.		204,277
14,059	(1) Overland Storage, Inc.		180,096
17,540	Skyworks Solutions, Inc.		124,534
54,455	(1)(2) SymmetriCom, Inc.		168,266
21,690	(1) Titan Corp.		279,584
12,360	(1) Veeco Instruments, Inc.		148,073
1,630	(1) Zebra Technologies Corp., Class A		100,278
11,690	(1) Zoran Corp.		175,233
	Total		3,508,401
	Energy—2.1%
25,612	(1) Comstock Resources, Inc.		203,615
7,175	(1) Plains Resources, Inc.		160,146
22,395	(1) Ultra Petroleum Corp.		184,311
5,780	XTO Energy, Inc.		139,009
	Total		687,081
	Finance—11.2%
17,387	(1) BankUnited Financial Corp., Class A		282,191
8,583	Commercial Federal Corp.		199,555
9,864	Community First Bankshares, Inc.		270,372
6,030	Cullen/Frost Bankers, Inc.		208,819
4,290	East West Bancorp, Inc.		148,005
7,530	First American Financial Corp.		153,989
4,170	First BanCorp		104,375
12,849	First Charter Corp.		217,662
8,335	(1) First Republic Bank		168,784
8,423	Hudson United Bancorp		256,480
9,685	Provident Bankshares Corp.		218,891

9

Riggs Small Company Stock Fund

Shares		Value
Common Stocks—continued
	Finance—continued
6,301	RLI Corp.	$	176,428
7,685	South Financial Group, Inc.		166,380
8,205	(1) Southwest Bancorp. of Texas, Inc.		231,791
8,814	Staten Island Bancorp, Inc.		162,883
9,270	United Bankshares, Inc.		280,139
7,290	Washington Federal, Inc.		179,771
5,220	Weingarten Realty Investors		193,923
	Total		3,620,438
	Health Services—5.8%
10,866	(1) AmeriPath, Inc.		162,773
6,965	(1) Amerigroup Corp.		203,448
4,910	(1) Coventry Health Care, Inc.		164,289
5,920	(1) Pediatrix Medical Group		236,800
10,100	(1) Pharmaceutical Product Development, Inc.		276,740
7,870	(1) Renal Care Group, Inc.		249,085
30,418	(1) SFBC International, Inc.		387,525
20,560	(1) U.S. Physical Therapy, Inc.		204,778
	Total		1,885,438
	Health Technology—4.4%
3,982	(1) Cephalon, Inc.		200,175
4,185	(1) Cerner Corp.		149,028
14,645	(1)(2)Given Imaging Ltd.		146,450
4,465	(1)(2) Medicis Pharmaceutical Corp., Class A		204,943
14,165	(1) Noven Pharmaceuticals, Inc.		181,454
5,165	(1) Respironics, Inc.		164,970
3,110	(1) Techne Corp.		102,630
4,892	(1) Viasys Healthcare, Inc.		78,663
54,113	(1) VitalWorks, Inc.		182,902
	Total		1,411,215
	Industrial Services—6.0%
12,197	(1) Cal Dive International, Inc.		267,968
63,214	(1) Casella Waste Systems, Inc.		338,827
5,613	(1) EMCOR Group, Inc.		272,848
16,757	(1)(2) Insituform Technologies, Inc., Class A		266,604
11,170	(1) National-Oilwell, Inc.		232,895
16,595	(1) Pride International, Inc.		230,339
22,173	(1) Tetra Tech, Inc.		196,896
6,993	(1) Tetra Technologies, Inc.		145,804
	Total		1,952,181
	Non-Energy Minerals—1.8%
26,953	Commonwealth Industries, Inc.		166,300
34,370	(1) Louisiana-Pacific Corp.		231,654
14,331	(1) Steel Dynamics, Inc.		186,733
	Total		584,687

10

Riggs Small Company Stock Fund

Shares		Value
Common Stocks—continued
	Process Industries—2.3%
5,365	AptarGroup, Inc.	$	149,844
6,235	(1) Rogers Corp.		155,750
1,355	(1) Scotts Co., Class A		64,498
11,785	(1)(2) Sealed Air Corp.		180,546
10,525	(1) Silgan Holdings, Inc.		194,923
	Total		745,561
	Producer Manufacturing—3.4%
6,945	(1) American Axle & Manufacturing Holdings, Inc.		164,597
15,683	(2) Noble International Ltd.		131,737
1,728	OshKosh Truck Corp.		98,410
5,950	Roper Industries, Inc.		229,670
6,116	Timken Co.		111,434
14,975	Tredegar Corp.		193,178
38,649	(1) Wabash National Corp.		181,650
	Total		1,110,676
	Retail Trade—7.7%
9,235	Aaron Rents, Inc.		199,014
7,265	(1) Ann Taylor Stores Corp.		170,219
8,280	(1) Duane Reade, Inc.		159,307
22,841	(1) Insight Enterprises, Inc.		174,505
7,003	(1) Linens ‘N Things, Inc.		164,641
10,765	(1) O’Reilly Automotive, Inc.		293,562
7,880	(1) Pacific Sunwear of California		184,156
5,469	Regis Corp.		160,460
6,754	(1) Rent-A-Center, Inc.		299,540
101,599	(1) The Good Guys, Inc.		208,278
9,560	(1) Too, Inc.		241,868
20,520	(1) Wet Seal, Inc., Class A		238,853
	Total		2,494,403
	Technology Services—3.3%
6,170	(2) Fair Isaac & Co., Inc.		237,360
9,670	Global Payments, Inc.		273,178
7,612	(1)(2) Manhattan Associates, Inc.		171,118
8,555	(1) SERENA Software, Inc.		136,538
61,158	(1) Tyler Technologies, Inc.		244,632
	Total		1,062,826
	Transportation—3.4%
12,445	(1) Atlantic Coast Airlines		164,274
9,414	(1) Forward Air Corp.		163,145
5,105	(1) Hunt (J.B.) Transportation Services, Inc.		141,357
36,941	(1) Mesa Air Group, Inc.		203,545
20,806	SkyWest, Inc.		315,648
5,966	Werner Enterprises, Inc.		122,005
	Total		1,109,974

11

Riggs Small Company Stock Fund

Shares or Principal Amount		Value
Common Stocks—continued
	Utilities—2.7%
6,380	Energen Corp.	$	178,002
4,565	New Jersey Resources Corp.		144,163
13,865	Philadelphia Suburban Corp.		297,959
19,224	(1) Southern Union Co.		237,224
	Total		857,348
	Total Common Stocks (identified cost $28,548,634)		28,559,388
(3) Repurchase Agreement—10.6%
$3,428,000	Repurchase agreement with PaineWebber, dated 10/31/2002 due 11/1/2002 at 1.84%, collateralized by U.S. Treasury obligations with various maturities to 2007 (repurchase proceeds $3,428,175) (cost of $3,428,000)		3,428,000
	Total Investments (identified cost $31,976,634)(4)	$	31,987,388

(1) Non-income producing security.

(2) Certain share amounts on loan to broker.

(3) The repurchase agreement is fully collateralized by U.S. Treasury obligations based on market prices at the date of the portfolio.

(4) The cost of investments for federal tax purposes amounts to $31,976,634. The net unrealized appreciation of investments on a federal tax basis amounts to $10,754 which is comprised of $2,576,589 appreciation and $2,565,835 depreciation at October 31, 2002.

Note:    The categories of investments are shown as a percentage of net assets ($32,318,931) at October 31, 2002.

See Notes which are an integral part of the Financial Statements

12

PORTFOLIO OF INVESTMENTS

Riggs Large Cap Growth Fund

October 31, 2002 (unaudited)

Shares		Value
Common Stocks—95.8%
	Air Freight & Logistics—1.9%
3,735	FedEx Corp.	$	198,665
	Airlines—3.0%
20,855	Southwest Airlines Co.		304,483
	Banks Major Regional—4.5%
9,000	Wells Fargo & Co.		454,230
	Commercial Services & Supplies—8.2%
6,000	(1) Apollo Group, Inc., Class A		249,000
10,000	First Data Corp.		349,400
11,675	(1) Republic Services, Inc.		240,271
	Total		838,671
	Communications Equipment—2.0%
18,390	(1) Cisco Systems, Inc.		205,600
	Computers & Peripherals—9.9%
9,590	(1) Dell Computer Corp.		274,370
16,495	Hewlett-Packard Co.		260,621
6,000	International Business Machines Corp.		473,640
	Total		1,008,631
	Computer Software/Services—8.2%
8,000	(1) Microsoft Corp.		427,760
40,000	(1) Oracle Corp.		407,600
	Total		835,360
	Electrical Equipment—3.5%
14,315	General Electric Co.		361,454
	Financials Diversified—8.0%
11,325	Citigroup, Inc.		418,459
3,995	Fannie Mae		267,106
1,325	SLM Corporation		136,130
	Total		821,695
	Health Care-Drugs/Pharmaceuticals—9.2%
4,650	Johnson & Johnson		273,188
14,160	Pfizer, Inc.		449,863
6,420	Wyeth		215,070
	Total		938,121
	Health Care-Medical Products/Supplies—6.1%
5,530	Bausch & Lomb, Inc.		171,983
10,000	Medtronic, Inc.		448,000
	Total		619,983
	Hotels Restaurants & Leisure—5.2%
4,580	(1) Starbucks Corp.		109,187
8,695	Starwood Hotels & Resorts Worldwide, Inc.		202,593
6,960	Wendy’s International, Inc.		220,493
	Total		532,273

13

Riggs Large Cap Growth Fund

Shares or Principal Amount		Value
Common Stocks—continued
	Household Durables—1.1%
2,310	Fortune Brands, Inc.	$	115,639
	Insurance Multi-Line—3.7%
6,000	American International Group, Inc.		375,300
	Retail-General Merchandise Chain—7.8%
2,590	(1) Kohl’s Corp.		151,386
9,000	Target Corp.		271,080
7,000	Wal-Mart Stores, Inc.		374,850
	Total		797,316
	Retail Specialty—4.2%
6,505	(1) Bed Bath & Beyond, Inc.		230,667
4,770	Lowe’s Cos., Inc.		199,052
	Total		429,719
	Retail Stores-Drug Stores—7.0%
10,000	Walgreen Co.		337,500
8,000	(1) Whole Foods Market, Inc.		373,232
	Total		710,732
	Semiconductor Equipment & Products—2.3%
13,370	Intel Corp.		231,301
	Total Common Stocks (identified cost $10,756,127)		9,779,173
(2) Repurchase Agreement—0.5%
$55,000	Repurchase agreement with PaineWebber, dated 10/31/2002 due 11/1/2002 at 1.84%, collateralized by U.S. Treasury STRIP due 8/15/2009 (repurchase proceeds $55,003) (cost of $55,000)		55,000
	Total Investments (identified cost $10,811,127)(3)	$	9,834,173

(1) Non-income producing security.

(2) The repurchase agreement is fully collateralized by U.S. Treasury obligations based on market prices at the date of the portfolio.

(3) The cost of investments for federal tax purposes amounts to $10,811,127. The net unrealized depreciation of investments on a federal tax basis amounts to $976,954 which is comprised of $445,077 appreciation and $1,422,031 depreciation at October 31, 2002.

Note:    The categories of investments are shown as a percentage of net assets ($10,212,392) at October 31, 2002.

See Notes which are an integral part of the Financial Statements

14

PORTFOLIO OF INVESTMENTS

Riggs U.S. Government Securities Fund

October 31, 2002 (unaudited)

Principal Amount			Value
Corporate Bond—0.7%
		Finance—0.7%
$	519,368	EQCC Home Equity Loan Trust 1997-3, Class A8, 6.41%, 12/15/2004 (identified cost $519,285)	$	532,165
Government Agencies—66.3%
		Federal Agricultural Mortgage Association—2.6%
	1,700,000	8.07%, 4/16/2007		2,046,795
		Federal Home Loan Mortgage Corporation—31.6%
	4,000,000	(1) 3.25%, 1/15/2004		4,080,320
	13,749,000	(1) 5.50%, 7/15/2006		15,032,194
	600,692	6.00%, 4/1/2003		612,778
	709,415	6.50%, 7/1/2004		719,271
	900,000	6.943%, 3/21/2007		1,045,923
	3,000,000	7.375%, 5/15/2003		3,093,471
		Total		24,583,957
		Federal National Mortgage Association—13.3%
	1,100,000	5.75%, 4/15/2003		1,121,072
	7,900,000	6.00%, 5/15/2011		8,813,951
	119,396	7.50%, 6/1/2012		127,150
	151,232	9.50%, 6/25/2018		172,086
	54,020	9.50%, 7/25/2019		61,034
		Total		10,295,293
		Government National Mortgage Association—17.2%
	1,794,766	6.50%, 5/15/2028		1,873,615
	4,131,548	6.50%, 10/15/2031		4,307,938
	5,162,816	7.00%, 8/15/2027		5,441,530
	4,832	7.50%, 6/15/2026		5,157
	6,636	7.50%, 10/15/2026		7,083
	1,057,598	7.50%, 10/15/2027		1,126,939
	560,111	8.00%, 10/15/2027		603,128
		Total		13,365,390
		Student Loan Marketing Association—1.6%
	1,000,000	7.30%, 8/1/2012		1,212,770
		Total Government Agencies (identified cost $48,409,383)		51,504,205
U.S. Treasury Obligations—30.4%
		U.S. Treasury Bonds—16.2%
	1,696,000	(1) 5.375%, 2/15/2031		1,790,806
	3,321,000	6.125%, 11/15/2027		3,777,936
	365,000	(1) 6.125%, 8/15/2029		416,308
	245,000	(1) 6.50%, 11/15/2026		291,109
	1,000,000	7.125%, 2/15/2023		1,261,140
	250,000	(1) 7.25%, 8/15/2022		318,770
	1,350,000	7.875%, 2/15/2021		1,817,168
	1,800,000	(1) 8.00%, 11/15/2021		2,459,880

15

Riggs U.S. Government Securities Fund

Principal Amount			Value
U.S. Treasury Obligations—continued
		U.S. Treasury Bonds—continued
$	325,000	(1) 12.00%, 8/15/2013	$	474,516
		Total		12,607,633
		U.S. Treasury Notes—14.2%
	9,251,000	(1) 4.875%, 2/15/2012		9,974,428
	1,000	(1) 6.50%, 5/15/2005		1,114
	900,000	(1) 7.00%, 7/15/2006		1,045,305
		Total		11,020,847
		Total U.S. Treasury Obligations (identified cost $21,716,249)		23,628,480
(2) Repurchase Agreement—1.7%
$	1,348,000	Repurchase agreement with PaineWebber, dated 10/31/2002 due 11/1/2002 at 1.84%, collateralized by U.S. Treasury obligations with various maturities to 2022 (repurchase proceeds $1,348,069) (cost of $1,348,000 )		1,348,000
		Total Investments (identified cost $71,992,917)(3)	$	77,012,850

(1) Certain principal amounts on loan to broker.

(2) The repurchase agreement is fully collateralized by U.S. Treasury obligations based on market prices at the date of the portfolio.

(3) The cost of investments for federal tax purposes amounts to $72,288,358. The net unrealized appreciation of investments on a federal tax basis amounts to $4,724,492 which is comprised of $4,796,155 appreciation and $71,663 depreciation at October 31, 2002.

Note:    The categories of investments are shown as a percentage of net assets ($77,744,500) at October 31, 2002.

See Notes which are an integral part of the Financial Statements

16

PORTFOLIO OF INVESTMENTS

Riggs Bond Fund

October 31, 2002 (unaudited)

Principal Amount		Value
Asset-Backed Securities—11.6%
$1,265,000	California Infrastructure & Economic Development Bank Special Purpose Trust PG&E-1, Class A7, 6.42%, 9/25/2008	$	1,377,332
1,265,000	California Infrastructure SDG&E-1 1997-1, Class A6, 6.31%, 9/25/2008		1,378,002
431,075	EQCC Home Equity Loan Trust 1997-3, Class A8, 6.41%, 12/15/2004		441,697
	Total Asset-Backed Securities (identified cost $2,950,007)		3,197,031
Collateralized Mortgage Obligations—9.5%
	Finance—9.5%
1,240,000	Federal Home Loan Mortgage Corp., Series 1602, Class PH, 6.00%, 4/15/2023		1,318,805
163,427	Federal National Mortgage Association, Series 1988-16, Class B, 9.50%, 6/25/2018		185,963
61,593	Federal National Mortgage Association, Series 1989-35, Class G, 9.50%, 7/25/2019		69,591
974,915	Prudential Home Mortgage Securities 1993-35, Class A7, 6.75%, 9/25/2008		1,017,451
17,181	Resolution Trust Corp. 1995-2, Class M1, 7.15%, 5/25/2029		17,332
	Total Collateralized Mortgage Obligations (identified cost $2,475,389)		2,609,142
Corporate Bonds—20.6%
	Finance—20.6%
500,000	Bank One Corp., Note, 7.60%, 5/1/2007		583,305
1,336,000	Bear Stearns Cos., Inc., Note, 5.70%, 1/15/2007		1,424,951
366,000	Chase Manhattan Corp., Sub. Note 7.25%, 6/1/2007		408,101
1,000,000	Credit Suisse First Boston USA, Inc., Note, 6.50%, 1/15/2012		1,042,540
1,151,000	Household Finance Corp., Sr. Note, 5.875%, 9/25/2004		1,085,497
1,030,000	Lehman Brothers Holdings, Inc., Note, 6.625%, 1/18/2012		1,118,508
	Total Corporate Bonds (identified cost $5,427,053)		5,662,902
Government Agencies—9.0%
	Federal Farm Credit Bank—3.1%
715,000	9.20%, 8/22/2005		846,005
	Federal Home Loan Mortgage Corporation—5.6%
1,400,000	5.50%, 7/15/2006		1,530,662
	Student Loan Marketing Association—0.3%
70,000	7.30%, 8/1/2012		84,894
	Total Government Agencies (identified cost $2,316,592)		2,461,561
Mortgage Backed Securities—16.3%
	Federal Home Loan Mortgage Corporation—0.1%
30,505	6.50%, 7/1/2004		30,929
	Federal National Mortgage Association—0.5%
133,677	7.50%, 6/1/2012		142,358
	Government National Mortgage Association—15.7%
1,923,636	6.50%, 5/15/2028		2,008,146
130,375	6.50%, 9/15/2028		136,103
34,647	6.50%, 10/15/2031		36,126
1,217,811	7.00%, 8/15/2027		1,283,554
96,009	7.00%, 7/15/2028		101,012
488,925	7.50%, 6/15/2026		521,864
111,600	7.50%, 12/15/2026		119,118

17

Riggs Bond Fund

Principal Amount		Value
Mortgage Backed Securities—continued
	Government National Mortgage Association—continued
$    29,815	7.50%, 1/15/2027	$	31,770
13,473	7.50%, 4/15/2027		14,356
22,567	8.00%, 6/15/2026		24,327
10,745	8.00%, 8/15/2027		11,570
	Total		4,287,946
	Total Mortgage Backed Securities (identified cost $4,250,969)		4,461,233
U.S. Treasury Obligations—30.1%
	U.S. Treasury Bill—0.7%
201,000	1/2/2003		200,576
	U.S. Treasury Bonds—19.6%
1,465,000	(1) 5.375%, 2/15/2031		1,546,893
500,000	6.125%, 11/15/2027		568,795
1,515,000	(1) 6.125%, 8/15/2029		1,727,964
730,000	(1) 6.25%, 8/15/2023		838,923
519,000	(1) 6.50%, 11/15/2026		616,676
50,000	6.75%, 8/15/2026		61,120
	Total		5,360,371
	U.S. Treasury Note—9.8%
2,500,000	(1) 4.875%, 2/15/2012		2,695,500
	Total U.S. Treasury Obligations (identified cost $7,658,529)		8,256,447
(2) Repurchase Agreement—2.2%
594,000	Repurchase agreement with PaineWebber, dated 10/31/2002 due 11/1/2002 at 1.84%, collateralized by U.S. Treasury STRIPS due 8/15/2009 (repurchase proceeds $594,030) (cost of $594,000)		594,000
	Total Investments (identified cost $25,672,539)(3)	$	27,242,316

(1) Certain principal amounts on loan to broker.

(2) The repurchase agreement is fully collateralized by U.S. Treasury obligations based on market prices at the date of the portfolio.

(3) The cost of investments for federal tax purposes amounts to $25,750,253. The net unrealized appreciation of investments on a federal tax basis amounts to $1,492,063 which is comprised of $1,600,821 appreciation and $108,758 depreciation at October 31, 2002.

Note:    The categories of investments are shown as a percentage of net assets ($27,433,785) at October 31, 2002.

See Notes which are an integral part of the Financial Statements

18

PORTFOLIO OF INVESTMENTS

Riggs Intermediate Tax Free Bond Fund

October 31, 2002 (unaudited)

Principal Amount		Value
Long-Term Municipals—89.9%
	Arizona—2.0%
$1,000,000	Maricopa County, AZ, Unified School District No. 97, GO UT, 5.20% (FGIC INS)/(Original Issue Yield: 5.30%), 7/1/2007	$	1,069,280
	Georgia—1.9%
950,000	Georgia Municipal Electric Authority, Refunding Revenue Bonds (Series Z), 5.10% (FSA INS)/(Original Issue Yield: 5.15%), 1/1/2005		1,013,470
	Hawaii—4.2%
2,000,000	Hawaii State, GO UT (Series CB), Refunding Bonds, 5.75% (Original Issue Yield: 5.90%), 1/1/2007		2,235,020
	Illinois—11.1%
1,000,000	Chicago, IL, O’Hare International Airport (Series A), 6.375% (MBIA INS)/(Original Issue Yield: 6.735%), 1/1/2012		1,095,550
1,000,000	Chicago, IL, O’Hare International Airport, Revenue Bonds (Series A), 5.375% (AMBAC INS)/(Original Issue Yield: 5.50%), 1/1/2007		1,096,590
1,000,000	Chicago, IL, Public Building Commission, Revenue Bonds (Series C), 5.80% (Park District) /(FGIC INS)/(Original Issue Yield: 5.886%), 1/1/2013		1,026,900
1,550,000	Chicago, IL, GO UT Refunding Bonds, 6.30% (AMBAC INS)/(Original Issue Yield: 6.40%), 1/1/2005		1,689,035
1,000,000	Lake County, IL, (Series A) Water & Sewer Refunding Revenue Bonds, 5.50% (AMBAC INS)/(Original Issue Yield: 5.65%), 12/1/2009		1,036,050
	Total		5,944,125
	Kansas—1.9%
1,000,000	Johnson County, KS, Unified School District No. 233, GO UT, 5.25% (FGIC INS)/(Original Issue Yield: 5.30%), 9/1/2017		1,030,200
	Louisiana—3.8%
2,000,000	Louisiana PFA, Refunding Revenue Bonds, 5.95% (AXA LOC), 6/15/2019		2,024,580
	Massachusetts—4.0%
1,000,000	Lawrence, MA, GO UT, 5.50% (AMBAC INS)/(Original Issue Yield: 4.71%), 2/1/2015 (2/1/2011@100)		1,107,790
1,000,000	Massachusetts State Special Obligation Revenue, (Series A), 5.00%, 6/1/2017		1,037,470
	Total		2,145,260
	Michigan—7.7%
1,000,000	Central Michigan University, Refunding Revenue Bond, 6.00% (MBIA INS)/(Original Issue Yield: 6.40%), 10/1/2013		1,023,140
865,000	Michigan State Building Authority (Series I) Health, Hospital, Nursing Home Improvement Revenue Bonds, 5.40% (Original Issue Yield: 5.50%), 10/1/2005		935,299
1,000,000	Oxford, MI, Area Community Schools, GO UT, 5.50% (Q-SBLF INS), 5/1/2017		1,089,170
1,000,000	Wyoming, MI, Public Schools, GO UT, 5.25% (Original Issue Yield: 5.425%), 5/1/2017		1,050,340
	Total		4,097,949
	Minnesota—5.0%
1,000,000	Hopkins, MN, ISD, No. 270, GO UT, 5.00% (FGIC INS), 2/1/2015		1,068,250
1,500,000	Minnesota State, GO UT, 5.00% (Original Issue Yield: 4.37%), 10/1/2014 (10/1/2011@100)		1,622,625
	Total		2,690,875
	Nevada—4.1%
1,000,000	Clark County, NV, School District, GO LT (Series B), 5.50% (FGIC INS), 6/15/2015		1,098,350
1,000,000	Washoe County, NV, Hospital Facilities, Revenue Bonds, 6.00% (AMBAC INS)/(Original Issue Yield: 6.10%), 6/1/2009		1,074,590
	Total		2,172,940
	New Jersey—2.0%
1,000,000	West Deptford Township, GO, 5.375% (FGIC INS), 9/1/2018		1,073,200
	New Mexico—2.1%
1,000,000	Santa Fe, NM Community College District, GO UT, 5.45% (Original Issue Yield: 5.55%), 8/1/2010		1,096,220

19

Riggs Intermediate Tax Free Bond Fund

Principal Amount or Shares		Value
Long-Term Municipals—continued
	North Carolina—2.0%
$1,000,000	North Carolina State, GO UT Bonds, 5.00%, 5/1/2011	$	1,077,110
	Rhode Island—2.8%
1,435,000	Rhode Island Housing & Mortgage Finance Corp. (Series A), Refunding Revenue Bonds, 5.45% (AMBAC INS), 7/1/2004		1,493,218
	Texas—19.6%
1,000,000	Austin, TX, Hotel Occupancy, 5.625% (AMBAC INS)/(Original Issue Yield: 5.71%), 11/15/2019		1,083,440
1,000,000	Dallas-Fort Worth, TX, Regional Airport, Refunding Revenue Bond, (Series A), 7.75% (FGIC INS), 11/1/2003		1,058,780
1,000,000	Harris County, TX, GO LT Correctional Facility Improvement Bonds, 5.50% (Original Issue Yield: 5.55%), 10/1/2011		1,098,890
1,000,000	Houston, TX, (Series A), 5.375% (FSA INS)/(Original Issue Yield: 4.83%), 3/1/2017		1,071,310
1,000,000	Johnson County, TX, GO UT, 5.00% (FSA INS)/(Original Issue Yield: 4.85%), 2/15/2016		1,043,020
1,000,000	North Texas Tollway Authority, Dallas, (Series A), 5.10% (FGIC INS)/(Original Issue Yield: 5.20%), 1/1/2013		1,069,410
535,000	San Antonio, TX, Electric & Gas, Revenue Bond, 5.500%, 2/1/2015		601,078
335,000	San Antonio, TX, Electric & Gas, Revenue Bonds, 5.50% (Original Issue Yield: 5.625%), 2/1/2015 (2/1/2007 @101)		371,525
130,000	San Antonio, TX, Electric & Gas, Revenue Bonds, 5.500%, 2/15/2015		140,682
1,000,000	Spring TX, ISD, 5.25%, 2/15/2019		1,038,930
820,000	Texas Water Development Board, Revenue Bond, 3.95% (AMBAC INS), 8/15/2003		834,768
1,000,000	Travis Country, TX, GO UT, 5.25%, 3/1/2015		1,083,940
	Total		10,495,773
	Utah—3.9%
420,000	Intermountain Power Agency, Utah, (Series B), 5.25% (Original Issue Yield: 5.79%), 7/1/2017		437,060
580,000	Intermountain Power Agency, Utah, (Series B), 5.25% (Original Issue Yield: 5.79%), 7/1/2017		588,810
440,000	Intermountain Power Agency, Utah, (Series C), 5.00% (Original Issue Yield: 4.70%), 7/1/2004		457,296
560,000	Intermountain Power Agency, Utah, (Series C), 5.00% (Original Issue Yield: 4.999%), 7/1/2004		583,050
	Total		2,066,216
	Virginia—1.2%
605,000	Chesapeake, VA, IDA, Public Facility Lease Revenue Bonds, 5.40% (MBIA INS)/(Original Issue Yield: 5.50%), 6/1/2005		648,633
	Washington—6.1%
1,000,000	Kitsap County, WA, School District No. 400, GO UT, 5.50% (Original Issue Yield: 4.97%), 12/1/2015		1,099,260
1,000,000	Snohomish County, WA, School District No. 6, GO UT Refunding Bonds, 5.45% (FGIC INS), 12/1/2005		1,097,920
1,000,000	Washington State Public Power Supply System (Series B), 5.40% (Energy Northwest, WA)/(Original Issue Yield: 5.45%), 7/1/2005		1,078,220
	Total		3,275,400
	Wisconsin—2.5%
1,315,000	Milwaukee, WI, (Series Y), 4.00%, 9/1/2003		1,340,800
	Wyoming—2.0%
1,000,000	Wyoming Building Corp., Correctional Facility Improvement Revenue Bonds, 5.00% (Original Issue Yield: 5.05%), 10/1/2013		1,065,270
	Total Long-Term Municipals (identified cost $45,854,319)		48,055,539
Mutual Funds—3.0%
1,094,427	SEI Tax Exempt Money Market Fund		1,094,427
500,000	SEI Tax Exempt Money Market Fund, Series A		500,000
	Total Mutual Funds (at net asset value)		1,594,427
	Total Investments (identified cost $47,448,746)(1)	$	49,649,966

20

(1) The cost of investments for federal tax purposes amounts to $47,385,827. The net unrealized appreciation of investments on a federal tax basis amounts to $2,264,139 which is comprised of $2,266,488 appreciation and $2,349 depreciation at October 31, 2002.

Note:    The categories of investments are shown as a percentage of net assets ($53,425,801) at October 31, 2002.

The following acronyms are used throughout this portfolio:

AMBAC	— American Municipal Bond Assurance Corporation	LOC	— Letter of Credit
FGIC	— Financial Guaranty Insurance Company	LT	— Limited Tax
FSA	— Financial Security Assurance	MBIA	— Municipal Bond Investors Assurance
GO	— General Obligation	PFA	— Public Facility Authority
IDA	— Industrial Development Authority	Q-SBLF	— Qualified State Bond Loan Fund
INS	— Insured	UT	— Unlimited Tax
ISD	— Independent School District

See Notes which are an integral part of the Financial Statements

21

PORTFOLIO OF INVESTMENTS

Riggs Long Term Tax Free Bond Fund

October 31, 2002 (unaudited)

Principal Amount		Value
Long-Term Municipals—95.2%
	Alabama—5.2%
$1,000,000	Alabama State Public School & College Authority, Refunding Revenue Bonds, 5.125% (FSA INS)/(Original Issue Yield: 4.78%), 11/1/2014	$	1,074,920
1,115,000	University of Alabama, Refunding Revenue Bonds, 5.00% (FGIC INS)/(Original Issue Yield: 4.53%), 10/1/2013		1,209,652
	Total		2,284,572
	Alaska—0.7%
300,000	Alaska State Housing Finance Corp., Revenue Bonds (Series 1), Veterans Mortgage Program), 6.30% (GNMA INS), 12/1/2009		314,712
	Connecticut—0.1%
25,000	Madison, CT, GO UT, 4.875% (FGIC INS)/(Original Issue Yield: 5.00%), 12/15/2010		26,666
	District Of Columbia—3.8%
500,000	District of Columbia, Carnegie Endowment Revenue Bonds, 5.75% (Original Issue Yield: 5.75%), 11/15/2010		540,155
1,000,000	District of Columbia, Refunding Revenue Bonds, 5.50% (Catholic University of America)/(AMBAC INS), 10/1/2012		1,122,220
	Total		1,662,375
	Georgia—2.6%
1,000,000	Georgia Municipal Electric Authority, Revenue Bonds (Series Y), 6.40%, 1/1/2009		1,153,878
	Illinois—4.6%
300,000	Chicago, IL, Metropolitan Water Reclamation District, GO UT Refunding Bonds, 5.20% (Original Issue Yield: 5.25%), 12/1/2013		330,384
1,000,000	Illinois Department Central Management Services, COP, 5.50% (MBIA INS)/(Original Issue Yield: 5.55%), 7/1/2013		1,104,070
500,000	Metropolitan Pier & Exposition Authority, IL, Dedicated State Tax Refunding Revenue Bonds, 6.75% (Original Issue Yield: 6.85%), 6/1/2010		595,860
	Total		2,030,314
	Indiana—2.5%
1,000,000	Central High School Building Corp., IN, Refunding Revenue Bonds, 5.50%, 8/1/2010		1,111,880
	Michigan—12.0%
655,000	Detroit, MI, City School District, GO UT Refunding Bonds, 5.40% (Q-SBLF INS)/(Original Issue Yield: 5.47%), 5/1/2013		671,801
1,000,000	Lincoln Park, MI, School District, GO UT, 7.00% (FGIC INS)/(Original Issue Yield: 5.95%), 5/1/2020		1,165,500
2,000,000	Michigan Municipal Bond Authority, Refunding Revenue Bonds, 5.375%, 10/1/2018		2,283,660
1,025,000	Michigan Municipal Bond Authority, Water Utility Improvements, Revenue Bonds, 5.875% (Original Issue Yield: 5.40%), 10/1/2017		1,205,646
	Total		5,326,607
	Minnesota—2.4%
1,000,000	Minneapolis, MN, Special School District No. 001, (Series B) COP School Improvement Bonds, 5.125%, 2/1/2014		1,061,570
	Missouri—4.8%
1,000,000	Missouri State Environmental Improvement & Energy Authority, Revenue Bonds, (Series C) 6.00%, 1/1/2016		1,092,591
1,000,000	Taney County, MO, Reorganized School District Number R-V, GO UT, 5.80%, 3/1/2017		1,056,030
	Total		2,148,621
	Nevada—4.1%
1,705,000	Nevada State, (Series A), 5.00% (FSA INS)/(Original Issue Yield: 4.52%), 4/1/2012 (10/1/2012 @100)		1,801,179
	North Carolina—2.6%
1,000,000	North Carolina Eastern Municipal Power Agency, Refunding Revenue Bonds, 6.00% (AMBAC INS), 1/1/2018		1,170,170
	North Dakota—2.6%
1,055,000	North Dakota State Building Authority, (Series B) Refunding Revenue Bonds, 5.00% (AMBAC INS), 12/1/2010		1,143,715

22

Riggs Long Term Tax Free Bond Fund

Principal Amount or Shares		Value
Long-Term Municipals—continued
	Pennsylvania—4.7%
$1,000,000	Commonwealth of Pennsylvania, GO UT (Series 1), 5.00% (Original Issue Yield: 5.09%), 2/1/2022	$	1,008,400
1,000,000	Pennsylvania Intergovernmental Coop Authority, Special Tax, 5.25% (FGIC INS)/(Original Issue Yield: 5.012%), 6/15/2015		1,081,410
	Total		2,089,810
	South Carolina—4.8%
1,000,000	Beaufort County, SC, School District, GO, 5.50%, 3/1/2016		1,088,670
1,000,000	Fairfield County, SC, PCR Bond, 6.50% (South Carolina Electric and Gas)/(MBIA INS), 9/1/2014		1,033,890
	Total		2,122,560
	South Dakota—2.5%
1,000,000	Pierre, SD, School District, GO UT, 5.70% (FSA INS)/(Original Issue Yield: 5.70%), 8/1/2017		1,097,240
	Tennessee—2.4%
1,000,000	Metropolitan Government Nashville & Davidson County, TN, GO UT, 5.125% (Original Issue Yield: 5.125%), 11/15/2017 (5/15/2009 @101)		1,050,470
	Texas—11.0%
1,000,000	Bell County, TX, HFDC, Refunding Revenue Bonds, 5.375% (FSA INS), 12/1/2013		1,077,720
500,000	Carroll, TX, ISD, GO UT Refunding Bonds (Series A), 5.00% (Original Issue Yield: 5.02%), 2/15/2016		525,905
1,000,000	El Paso, TX, GO LT (Series 1998), 5.125% (FGIC INS)/(Original Issue Yield: 5.25%), 8/15/2015		1,065,540
1,000,000	Fort Worth, TX, Water & Sewer, Revenue Bonds, 5.75% (Original Issue Yield: 5.52%), 2/15/2017		1,095,400
1,000,000	Travis Country, TX, GO UT, 5.25%, 3/1/2015		1,083,940
	Total		4,848,505
	Utah—2.4%
1,050,000	Salt Lake County, UT, Municipal Building Authority, Refunding Revenue Bonds, 5.20% (AMBAC INS)/(Original Issue Yield: 5.33%), 10/15/2020 (10/15/2011 @100)		1,084,272
	Virginia—1.2%
480,000	Henry County, VA, GO UT, 6.00% (Original Issue Yield: 6.25%), 7/15/2014		517,018
	Washington—7.2%
1,000,000	Clark County, WA, GO UT Refunding Bonds, 5.25%, 6/1/2015		1,086,360
1,000,000	Seattle, WA (Series F), GO UT, 5.25% (Original Issue Yield: 5.02%), 12/15/2018		1,058,640
1,000,000	Washington State, (Series B), GO UT, 5.00% (Original Issue Yield: 5.20%), 1/1/2017		1,034,170
	Total		3,179,170
	Wisconsin—9.8%
50,000	Appleton, WI, Waterworks, Refunding Revenue Bonds, 5.375% (FGIC INS)/(Original Issue Yield: 4.75%), 1/1/2015		54,608
1,000,000	Green Bay, WI, IDA, GO UT Refunding Bonds (Series B), 5.90% (Original Issue Yield: 6.20%), 4/1/2010		1,015,380
1,000,000	Menomonee Falls, WI, Sewage System (Series A), Revenue Bonds, 5.65% (AMBAC INS)/(Original Issue Yield: 5.70%), 5/1/2016		1,095,120
1,000,000	Milwaukee County, WI (Series A), 5.00% (Original Issue Yield: 4.87%), 10/1/2016		1,052,490
1,000,000	Wisconsin State Transportation (Series A), 5.50% (FGIC INS)/(Original Issue Yield: 5.25%), 7/1/2015		1,097,800
	Total		4,315,398
	Wyoming—1.2%
500,000	Laramie County, WY, School District #2, GO UT, 5.90% (MBIA INS)/(Original Issue Yield: 5.90%), 6/1/2012		547,110
	Total Long-Term Municipals (identified cost $39,372,256)		42,087,812
Mutual Funds—3.8%
935,700	SEI Tax Exempt Money Market Fund		935,700
735,659	T. Rowe Price Tax—Exempt Money Fund		735,659
	Total Mutual Funds (at net asset value)		1,671,359
	Total Investments (identified cost $41,043,615)(1)	$	43,759,171

23

Riggs Long Term Tax Free Bond Fund

(1) The cost of investments for federal tax purposes amounts to $41,029,467. The net unrealized appreciation of investments on a federal tax basis amounts to $2,729,704 at October 31, 2002.

Note:    The categories of investments are shown as a percentage of net assets ($44,215,753) at October 31, 2002.

The following acronyms are used throughout this portfolio:

AMBAC	—American Municipal Bond Assurance Corporation	INS	—Insured
COP	—Certificate of Participation	ISD	—Independent School District
FGIC	—Financial Guaranty Insurance Company	LT	—Limited Tax
FSA	—Financial Security Assurance	MBIA	—Municipal Bond Investors Assurance
GNMA	—Government National Mortgage Association	PCR	—Pollution Control Revenue
GO	—General Obligation	Q-SBLF	—Qualified State Bond Loan Fund
HFDC	—Health Facility Development Corporation	UT	—Unlimited Tax
IDA	—Industrial Development Authority

See Notes which are an integral part of the Financial Statements

24

PORTFOLIO OF INVESTMENTS

Riggs Prime Money Market Fund

October 31, 2002 (unaudited)

Principal Amount		Value
Certificates of Deposit—6.3%
	Finance—6.3%
$  5,000,000	Citibank NA, New York, 1.720%, 11/22/2002	$	5,000,000
8,400,000	First Tennessee Bank, 1.750%, 11/12/2002		8,400,000
	Total Certificates of Deposit		13,400,000
Commercial Paper—53.1%
	Asset-Backed—2.8%
6,000,000	Asset One Securitization, 1.773%, 11/1/2002		6,000,000
	Finance—40.4%
7,000,000	American Express Credit Corp., 1.715%, 12/13/2002		6,986,035
8,000,000	Apreco, Inc., 1.753%, 11/22/2002		7,991,833
8,000,000	BASF AG, 1.700%, 12/18/2002		7,982,244
10,000,000	Charta Corp., 1.743%-1.744%, 11/5/2002-12/5/2002		9,992,267
8,000,000	Corporate Receivables Corp., 1.750%, 11/25/2002		7,990,667
8,000,000	Dakota, 1.763%, 11/4/2002		7,998,827
6,550,000	Emerald Financial Corp., 1.785%, 11/19/2002		6,544,171
6,633,000	Halogen Capital Co., 1.707%, 11/7/2002		6,631,121
8,959,000	Old Line Funding, 1.753%, 12/2/2002		8,945,499
5,000,000	Prudential Finance, 1.737%, 1/6/2003		4,984,142
10,000,000	UBS Finance (Delaware), Inc., 1.890%, 11/1/2002		10,000,000
	Total		86,046,806
	Finance-Automotive—2.3%
5,000,000	New Center Asset Trust, (Series A1+/P1), 1.745%, 12/9/2002		4,990,817
	Insurance—3.8%
8,000,000	CXC, Inc., 1.754%, 12/11/2002		7,984,444
	Utilities—3.8%
8,000,000	Salomon Smith Barney Holdings, Inc., 1.713%, 11/18/2002		7,993,540
	Total Commercial Paper		113,015,607
Corporate Bonds—11.3%
	Finance—8.9%
7,500,000	Caterpillar Financial Services Corp., 5.920%, 1/8/2003		7,549,468
6,490,000	IBM Credit Corp., 6.450%, 11/12/2002		6,498,056
5,000,000	Merrill Lynch & Co., Inc., 5.750%, 11/2/2002		5,001,458
	Total		19,048,982
	Retail Trade—2.4%
5,000,000	Wal-Mart Stores, Inc., 4.625%, 4/15/2003		5,048,057
	Total Corporate Bonds		24,097,039
Government Agencies—18.4%
	Federal Home Loan Bank System—14.6%
4,000,000	2.000%, 10/8/2003		4,000,000
4,000,000	2.000%, 10/8/2003		3,998,238
4,000,000	2.000%, 9/8/2003		4,000,000
5,000,000	2.000%, 11/14/2003		5,000,000

25

Riggs Prime Money Market Fund

Principal Amount		Value
Government Agencies—continued
	Federal Home Loan Bank System—continued
$5,000,000	2.250%, 8/14/2003	$	5,000,000
2,150,000	5.610%, 1/23/2003		2,168,223
2,000,000	6.305%, 12/9/2002		2,007,760
5,000,000	6.375%, 11/15/2002		5,008,182
	Total		31,182,403
	Federal National Mortgage Association—3.8%
8,000,000	(1) 6.250%, 11/15/2002		8,012,910
	Total Government Agencies		39,195,313
(2) Notes-Variable—9.0%
	Finance—2.4%
5,000,000	JPMorgan Chase Bank, 1.903%, 1/30/2003		5,001,850
	Student Loan Marketing Association—6.6%
7,000,000	1.608%, 11/5/2002		7,000,000
7,000,000	1.608%, 11/5/2002		7,000,000
	Total		14,000,000
	Total Government Notes—Variable		19,001,850
(3) Repurchase Agreement—1.5%
3,255,000	Repurchase agreement with PaineWebber, dated 10/31/2002 due 11/1/2002 at 1.84%, collateralized by U.S. Treasury obligations with various maturities to 2027 (repurchase proceeds $3,255,166)		3,255,000
	Total Investments (at amortized cost)(4)	$	211,964,809

(1) Certain principal amounts on loan to broker.

(2) Current rate and next reset date shown.

(3) The repurchase agreement is fully collateralized by U.S. Treasury obligations based on market prices at the date of the portfolio.

(4) Also represents cost for federal tax purposes.

Note:    The categories of investments are shown as a percentage of net assets ($212,779,368) at October 31, 2002.

See Notes which are an integral part of the Financial Statements

26

PORTFOLIO OF INVESTMENTS

Riggs U.S. Treasury Money Market Fund

October 31, 2002 (unaudited)

Principal Amount		Value
U.S. Treasury Obligations—52.4%
	U.S. Treasury Bills—52.4%
$  8,000,000	1.48%, 1/30/2003	$	7,970,400
11,000,000	(1) 1.590%-1.615%, 11/7/2002		10,997,122
8,000,000	(1) 1.630%, 11/21/2002		7,992,867
8,000,000	(1) 1.660%, 12/19/2002		7,982,506
8,000,000	(1) 1.665%, 1/23/2003		7,969,843
	Total U.S. Treasury Obligations		42,912,738
(2) Repurchase Agreements—47.7%
19,095,000	Repurchase agreement with PaineWebber, dated 10/31/2002 due 11/1/2002 at 1.84%, collateralized by U.S. Treasury obligations with various maturities to 2014 (repurchase proceeds $19,095,976)		19,095,000
20,000,000	Repurchase agreement with Salomon Smith Barney Inc., dated 10/31/2002 due 11/1/2002 at 1.790%, collateralized by U.S. Treasury obligations with various maturities to 2031 (repurchase proceeds $20,000,994)		20,000,000
	Total Repurchase Agreements		39,095,000
	Total Investments (at amortized cost)(3)	$	82,007,738

(1) Certain principal amounts on loan to broker.

(2) The repurchase agreements are fully collateralized by U.S. Treasury obligations based on market prices at the date of the portfolio.

(3) Also represents cost for federal tax purposes.

Note:    The categories of investments are shown as a percentage of net assets ($81,934,659) at October 31, 2002.

See Notes which are an integral part of the Financial Statements

27

STATEMENTS OF ASSETS AND LIABILITIES

Riggs Funds

October 31, 2002 (unaudited)

	Stock Fund			Small Company Stock Fund			Large Cap Growth Fund			U.S. Government Securities Fund
Assets:
Investments in securities, at value	$	36,549,109		$	28,559,388		$	9,779,173		$	75,664,850
Investments in repurchase agreements		551,000			3,428,000			55,000			1,348,000
Total investments, at value		37,100,109			31,987,388			9,834,173			77,012,850
Cash		13,994			9,450			8,652			11,505
Collateral for securities loaned, at fair value		960,247			2,564,699			—			20,951,322
Income receivable		35,144			8,080			3,873			1,054,952
Receivable for shares sold		150			—			—			—
Receivable for investments sold		390,878			1,257,655			374,339			—
Total assets		38,500,522			35,827,272			10,221,037			99,030,629
Liabilities:
Income distribution payable		—			—			—			321,822
Payable for investments purchased		404,640			932,243			—			—
Payable upon return of securities loaned		960,247			2,564,699			—			20,951,322
Payable for shares redeemed		2,359			—			447			—
Accrued expenses		25,252			11,399			8,198			12,985
Total liabilities		1,392,498			3,508,341			8,645			21,286,129
Net Assets	$	37,108,024		$	32,318,931		$	10,212,392		$	77,744,500
Net Assets Consists of:
Paid in capital		40,840,404			36,058,424		$	35,543,528		$	73,166,346
Net unrealized appreciation (depreciation) of investments		813,455			10,754			(976,954	)		5,019,933
Accumulated net realized loss on investments		(4,561,827	)		(3,605,573	)		(24,336,518	)		(330,475	)
Undistributed (distributions in excess of) net investment income		15,992			(144,674	)		(17,664	)		(111,304	)
Total Net Assets	$	37,108,024		$	32,318,931		$	10,212,392		$	77,744,500
Class R Shares	$	15,432,657		$	11,262,718		$	10,212,392		$	20,337,405
Class Y Shares	$	21,675,367		$	21,056,213			—		$	57,407,095
Net Asset Value, Offering Price and Redemption Proceeds Per Share:
Net Asset Value and Offering Price Per Share
Class R Shares	$	5.92		$	9.73		$	3.87		$	10.41
Class Y Shares	$	5.98		$	9.85			—		$	10.41
Redemption Proceeds Per Share(1)
Class R Shares	$	5.80	(2)	$	9.54	(2)	$	3.79	(2)	$	10.20	(2)
Class Y Shares	$	5.98		$	9.85			—		$	10.41
Shares Outstanding:
Class R Shares		2,607,933			1,157,789			2,637,391			1,953,976
Class Y Shares		3,623,774			2,138,366			—			5,514,664
Investments, at identified cost	$	36,286,654		$	31,976,634		$	10,811,127		$	71,992,917
Investments, at tax cost	$	36,286,654		$	31,976,634		$	10,811,127		$	72,288,358

(1) See “What Do Shares Cost?” in the Prospectus.

(2) Computation of redemption proceeds per share: 98/100 of net asset value.

See Notes which are an integral part of the Financial Statements

28

STATEMENTS OF ASSETS AND LIABILITIES—continued

Riggs Funds

October 31, 2002 (unaudited)

	Bond Fund			Intermediate Tax Free Bond Fund			Long Term Tax Free Bond Fund			Prime Money Market Fund			U.S. Treasury Money Market Fund
Assets:
Investments in securities, at value	$	26,648,316		$	49,649,966		$	43,759,171		$	208,709,809		$	42,912,738
Investments in repurchase agreements		594,000			—			—			3,255,000			39,095,000
Total investments, at amortized cost and value		27,242,316			49,649,966			43,759,171			211,964,809			82,007,738
Cash		9,198			9,997			9,944			834			841
Collateral for securities loaned, at fair value		7,457,310			—			—			1,681,040			24,090,336
Income receivable		298,545			812,190			595,671			1,033,126			1,971
Receivable for investments sold		—			3,140,300			—			—			—
Total assets		35,007,369			53,612,453			44,364,786			214,679,809			106,100,886
Liabilities:
Income distribution payable		114,690			167,881			136,762			199,852			58,034
Payable upon return of securities loaned		7,457,310			—			—			1,681,040			24,090,336
Accrued expenses		1,584			18,771			12,271			19,549			17,857
Total liabilities		7,573,584			186,652			149,033			1,900,441			24,166,227
Net Assets	$	27,433,785		$	53,425,801		$	44,215,753		$	212,779,368		$	81,934,659
Net Assets Consists of:
Paid in capital	$	26,235,778		$	50,668,847		$	40,941,030		$	212,258,499		$	81,933,989
Net unrealized appreciation of investments		1,569,777			2,201,220			2,715,556			—			—
Accumulated net realized gain (loss) on investments		(309,513	)		565,133			578,214			(56,109	)		—
Undistributed (distributions in excess of) net investment income		(62,257	)		(9,399	)		(19,047	)		576,978			670
Total Net Assets	$	27,433,785		$	53,425,801		$	44,215,753		$	212,779,368		$	81,934,659
Class R Shares	$	27,433,785		$	53,425,801		$	44,215,753		$	36,017,633		$	24,694,729
Class Y Shares		—			—			—		$	176,761,735		$	57,239,930
Net Asset Value, Offering Price and Redemption Proceeds Per     Share:
Net Asset Value and Offering Price Per Share
Class R Shares	$	10.95		$	10.56		$	10.71		$	1.00		$	1.00
Class Y Shares		—			—			—		$	1.00		$	1.00
Redemption Proceeds Per Share(1)
Class R Shares	$	10.73	(2)	$	10.35	(2)	$	10.50	(2)	$	1.00		$	1.00
Class Y Shares		—			—			—		$	1.00		$	1.00
Shares Outstanding:
Class R Shares		2,505,575			5,057,977			4,129,068			36,019,766			24,695,399
Class Y Shares		—			—			—			177,011,972			57,238,590
Investments, at identified cost	$	25,672,539		$	47,448,746		$	41,043,615		$	211,964,809		$	82,007,738
Investments, at tax cost	$	25,750,253		$	47,385,827		$	41,029,467		$	211,964,809		$	82,007,738

(1) See “What Do Shares Cost?” in the Prospectus.

(2) Computation of redemption proceeds per share: 98/100 of net asset value.

See Notes which are an integral part of the Financial Statements

29

STATEMENTS OF OPERATIONS

Riggs Funds

October 31, 2002 (unaudited)

	Stock Fund			Small Company Stock Fund			Large Cap Growth Fund			U.S. Government Securities Fund
Investment Income:
Dividends	$	342,433		$	84,532		$	47,641			—
Interest		9,296			46,498			16,406		$	2,135,968
Total investment income		351,729			131,030			64,047			2,135,968
Expenses:
Investment adviser fee		168,302			148,012			46,382			325,004
Administrative personnel and services fee		35,904			29,602			9,895			69,334
Custodian fees		4,488			3,700			1,237			8,667
Transfer and dividend disbursing agent fees and expenses		19,361			3,942			6,312			6,362
Trustees' fees		305			424			382			502
Auditing fees		8,379			8,690			7,762			8,950
Legal fees		1,741			1,701			1,606			1,470
Portfolio accounting fees		732			1,599			328			931
Distribution services fee—Class R Shares		22,368			15,940			15,461			26,038
Shareholder services fees—Class R Shares		22,368			15,940			15,461			26,038
Shareholder services fees—Class Y Shares		33,733			30,314			—			82,296
Share registration costs		11,591			13,266			5,656			11,509
Printing and postage		5,250			1,829			2,165			3,304
Insurance premiums		506			540			447			758
Miscellaneous		709			205			331			613
Total expenses		335,737			275,704			113,425			571,776
Waivers:
Waiver of investment adviser fee		—			—			(16,253	)		(173,336	)
Waiver of Distribution service fee—Class R Shares		—			—			(15,461	)		—
Waiver of Shareholder service fee—Class R Shares		—			—			—			(15,623	)
Waiver of Shareholder services fee—Class Y Shares		—			—			—			(49,378	)
Total waivers		—			—			(31,714	)		(238,337	)
Net expenses		335,737			275,704			81,711			333,439
Net investment income/ (Net operating loss)		15,992			(144,674	)		(17,664	)		1,802,529
Realized and Unrealized Gain (Loss) on Investments:
Net realized gain (loss) on investments		(3,791,215	)		(3,977,709	)		(1,893,682	)		1,232,320
Net change in unrealized appreciation (depreciation) of investments		(6,009,173	)		(5,018,251	)		885,207			2,628,479
Net realized and unrealized gain (loss) on investments		(9,800,388	)		(8,995,960	)		(1,008,475	)		3,860,799
Change in net assets resulting from operations	$	(9,784,396	)	$	(9,140,634	)	$	(1,026,139	)	$	5,663,328

See Notes which are an integral part of the Financial Statements

30

STATEMENTS OF OPERATIONS—continued

Riggs Funds

October 31, 2002 (unaudited)

	Bond Fund			Intermediate Tax Free Bond Fund			Long Term Tax Free Bond Fund			Prime Money Market Fund			U.S. Treasury Money Market Fund
Investment Income:
Interest	$	732,659		$	1,333,382		$	1,153,843		$	2,331,834		$	877,102
Expenses:
Investment adviser fee		108,504			211,340			180,036			615,290			255,015
Administrative personnel and services fee		23,148			45,086			38,408			196,893			81,605
Custodian fees		2,894			5,636			4,801			24,612			10,201
Transfer and dividend disbursing agent fees and expenses		1,084			410			593			10,665			1,760
Trustees’ fees		594			693			517			1,419			720
Auditing fees		8,504			8,315			8,341			7,785			7,324
Legal fees		2,054			1,685			1,812			2,069			1,687
Portfolio accounting fees		1,880			2,469			3,502			1,346			1,239
Distribution services fee—Class R Shares		36,168			70,447			60,012			101,348			93,973
Shareholder services fees—Class R Shares		36,168			70,447			60,012			50,674			46,986
Shareholder services fees—Class Y Shares		—			—			—			256,971			80,521
Share registration costs		7,176			7,254			7,676			11,042			10,543
Printing and postage		2,394			1,747			1,670			5,876			2,645
Insurance premiums		444			653			672			1,100			732
Miscellaneous		521			80			362			965			793
Total expenses		231,533			426,262			368,414			1,288,055			595,744
Waivers:
Waiver of investment adviser fee		(39,062	)		(48,336	)		(48,010	)		—			—
Waiver of Distribution service fee—Class R Shares		(36,168	)		(70,447	)		(60,012	)		(50,674	)		(46,986	)
Waiver of Shareholder service fee—Class R Shares		(21,701	)		(42,268	)		(36,007	)		(30,404	)		(28,192	)
Waiver of Shareholder services fee—Class Y Shares		—			—			—			(256,971	)		(80,521	)
Total waivers		(96,931	)		(161,051	)		(144,029	)		(338,049	)		(155,699	)
Net expenses		134,602			265,211			224,385			950,006			440,045
Net investment income		598,057			1,068,171			929,458			1,381,828			437,057
Realized and Unrealized Gain (Loss) on Investments:
Net realized gain on investments		109,369			390,559			324,774			—			—
Net change in unrealized appreciation of investments		1,013,054			614,089			1,221,464			—			—
Net realized and unrealized gain (loss) on investments		1,122,423			1,004,648			1,546,238			—			—
Change in net assets resulting from operations	$	1,720,480		$	2,072,819		$	2,475,696		$	1,381,828		$	437,057

See Notes which are an integral part of the Financial Statements

31

STATEMENTS OF CHANGES IN NET ASSETS

Riggs Funds

	Stock Fund						Small Company Stock Fund						Large Cap Growth Fund
	Six Months Ended (unaudited) October 31, 2002			Year Ended April 30, 2002			Six Months Ended (unaudited) October 31, 2002			Year Ended April 30, 2002			Six Months Ended (unaudited) October 31, 2002			Year Ended April 30, 2002
Increase (Decrease) in Net Assets:
Operations—
Net investment income (net operating loss)	$	15,992		$	(197,925	)	$	(144,674	)	$	(273,874	)	$	(17,664	)	$	(149,592	)
Net realized gain (loss) on investments		(3,791,215	)		(380,889	)		(3,977,709	)		3,697,335			(1,893,682	)		(12,277,212	)
Net change in unrealized appreciation (depreciation) of investments		(6,009,173	)		(12,995,681	)		(5,018,251	)		483,663			885,207			(604,554	)
Change in net assets resulting from operations		(9,784,396	)		(13,574,495	)		(9,140,634	)		3,907,124			(1,026,139	)		(13,031,358	)
Distributions to Shareholders—
Distributions from net investment income
Class Y Shares		—			—			—			(26,292	)		—			—
Distributions from net realized gain on investments
Class R Shares		—			(227,878	)		—			—			—			—
Class Y Shares		—			(332,541	)		—			—			—			—
Change in net assets resulting from distributions to shareholders		—			(560,419	)		—			(26,292	)		—			—
Share Transactions—
Proceeds from sales of shares		1,052,256			5,530,559			1,824,278			3,077,156			12,980			763,436
Net asset value of shares issued to shareholders in payment of distributions declared		—			206,065			—			170			—			—
Cost of shares redeemed		(7,629,676	)		(26,377,604	)		(4,592,564	)		(18,260,515	)		(4,638,593	)		(15,887,315	)
Change in net assets resulting from share transactions		(6,577,420	)		(20,640,980	)		(2,768,286	)		(15,183,189	)		(4,625,613	)		(15,123,879	)
Change in net assets		(16,361,816	)		(34,775,894	)		(11,908,920	)		(11,302,357	)		(5,651,752	)		(28,155,237	)
Net Assets:
Beginning of period		53,469,840			88,245,734			44,227,851			55,530,208			15,864,144			44,019,381
End of period	$	37,108,024		$	53,469,840		$	32,318,931		$	44,227,851		$	10,212,392		$	15,864,144
Undistributed net investment income (net operating loss) included in net assets at end of period	$	15,992			—		$	(144,674	)		—		$	(17,664	)		—

32

STATEMENTS OF CHANGES IN NET ASSETS—continued

Riggs Funds

	U.S. Government Securities Fund						Bond Fund						Intermediate Tax Free Bond Fund
	Six Months Ended (unaudited) October 31, 2002			Year Ended April 30, 2002			Six Months Ended (unaudited) October 31, 2002			Year Ended April 30, 2002			Six Months Ended (unaudited) October 31, 2002			Year Ended April 30, 2002
Increase (Decrease) in Net Assets:
Operations—
Net investment income	$	1,802,529		$	4,736,781		$	598,057		$	1,628,732		$	1,068,171		$	2,312,302
Net realized gain (loss) on investments		1,232,320			1,268,187			109,369			(40,773	)		390,559			198,400
Net change in unrealized appreciation (depreciation) of investments		2,628,479			(99,134	)		1,013,054			338,497			614,089			501,815
Change in net assets resulting from operations		5,663,328			5,905,834			1,720,480			1,926,456			2,072,819			3,012,517
Distributions to Shareholders—
Distributions from net investment income
Class R Shares		(487,421	)		(1,150,768	)		(742,786	)		(1,588,663	)		(1,077,570	)		(2,275,462	)
Class Y Shares		(1,621,807	)		(3,999,244	)		—			—			—			—
Change in net assets resulting from distributions to shareholders		(2,109,228	)		(5,150,012	)		(742,786	)		(1,588,663	)		(1,077,570	)		(2,275,462	)
Share Transactions—
Proceeds from sales of shares		2,645,055			10,070,451			586,566			2,484,422			895,035			4,643,570
Net asset value of shares issued to shareholders in payment of distributions declared		294,180			827,087			3,013			18,200			3,299			6,923
Cost of shares redeemed		(19,072,770	)		(31,042,687	)		(3,739,091	)		(11,092,833	)		(4,747,347	)		(8,590,863	)
Change in net assets resulting from share transactions		(16,133,535	)		(20,145,149	)		(3,149,512	)		(8,590,211	)		(3,849,013	)		(3,940,370	)
Change in net assets		(12,579,435	)		(19,389,327	)		(2,171,818	)		(8,252,418	)		(2,853,764	)		(3,203,315	)
Net Assets:
Beginning of period		90,323,935			109,713,262			29,605,603			37,858,021			56,279,565			59,482,880
End of period	$	77,744,500		$	90,323,935		$	27,433,785		$	29,605,603		$	53,425,801		$	56,279,565
Undistributed (distributions in excess of) net investment income included in net assets at end of period	$	(111,304	)	$	195,395		$	(62,257	)	$	82,472		$	(9,399	)		—

See Notes which are an integral part of the Financial Statements

33

STATEMENTS OF CHANGES IN NET ASSETS—continued

Riggs Funds

	Long Term Tax Free Bond Fund						Prime Money Market Fund						U.S. Treasury Money Market Fund
	Six Months Ended (unaudited) October 31, 2002			Year Ended April 30, 2002			Six Months Ended (unaudited) October 31, 2002			Year Ended April 30, 2002			Six Months Ended (unaudited) October 31, 2002			Year Ended April 30, 2002
Increase (Decrease) in Net Assets:
Operations—
Net investment income	$	929,458		$	2,213,167		$	1,381,828		$	6,578,488		$	437,057		$	3,235,291
Net realized gain (loss) on investments		324,774			507,784			—			(16,472	)		—			—
Net change in unrealized appreciation of investments		1,221,464			504,013			—			—			—			—
Change in net assets resulting from operations		2,475,696			3,224,964			1,381,828			6,562,016			437,057			3,235,291
Distributions to Shareholders—
Distributions from net investment income
Class R Shares		(909,369	)		(2,206,892	)		(168,576	)		(948,362	)		(119,150	)		(226,205	)
Class Y Shares		—			—			(1,216,309	)		(5,630,126	)		(317,237	)		(3,009,086	)
Distributions from net realized gain on investments
Class R Shares		—			(510,146	)		—			—			—			—
Change in net assets resulting from distributions to shareholders		(909,369	)		(2,717,038	)		(1,384,885	)		(6,578,488	)		(436,387	)		(3,235,291	)
Share Transactions—
Proceeds from sales of shares		707,556			653,807			257,428,204			722,194,399			139,555,980			356,741,992
Net asset value of shares issued to shareholders in payment of distributions declared		1,701			7,222			326,817			1,945,786			62,685			397,368
Cost of shares redeemed		(6,448,874	)		(10,260,946	)		(319,245,824	)		(796,678,143	)		(182,470,451	)		(397,090,193	)
Change in net assets resulting from share transactions		(5,739,617	)		(9,599,917	)		(61,490,803	)		(72,537,958	)		(42,851,786	)		(39,950,833	)
Change in net assets		(4,173,290	)		(9,091,991	)		(61,493,860	)		(72,554,430	)		(42,851,116	)		(39,950,833	)
Net Assets:
Beginning of period		48,389,043			57,481,034			274,273,228			346,827,658			124,785,775			164,736,608
End of period	$	44,215,753		$	48,389,043		$	212,779,368		$	274,273,228		$	81,934,659		$	124,785,775
Undistributed (distributions in excess of) net investment income included in net assets at end of period	$	(19,047	)	$	(39,136	)	$	576,978		$	580,035		$	670			—

See Notes which are an integral part of the Financial Statements

34

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35

FINANCIAL HIGHLIGHTS

Riggs Funds

(For a share outstanding throughout each period)

Year Ended April 30,	Net Asset Value, beginning of period		Net Investment Income (Net Operating Loss)		Net Realized and Unrealized Gain (Loss) on Investments		Total From Investment Operations		Distributions from Net Investment Income		Distributions from Net Realized Gain on Investments		Distributions from Paid-in Capital(1)
Stock Fund R Shares
1998	$	15.41	0.11		5.20		5.31		(0.11	)	(4.04	)	—
1999	$	16.57	0.04		0.94		0.98		(0.04	)	(1.71	)	—
2000	$	15.80	0.01		(0.38	)	(0.37	)	(0.01	)	(2.20	)	—
2001	$	13.22	(0.03	)(4)	(1.53	)	(1.56	)	—		(2.71	)	—
2002	$	8.95	(0.04	)(4)	(1.54	)	(1.58	)	—		(0.08	)	—
2002(5)	$	7.29	0.00	(6)	(1.37	)	(1.37	)	—		—		—
Stock Fund Y Shares
2000(8)	$	12.38	0.01		0.85		0.86		(0.01	)	—		—
2001	$	13.23	0.00	(4)(6)	(1.50	)	(1.50	)	—		(2.71	)	—
2002	$	9.02	(0.02	)(4)	(1.56	)	(1.58	)	—		(0.08	)	—
2002(5)	$	7.36	0.01		(1.39	)	(1.38	)	—		—		—
Small Company Stock Fund R Shares
1998	$	12.80	(0.04	)	9.23		9.19		—		(3.19	)	—
1999	$	18.80	(0.02	)	(5.66	)	(5.68	)	—		(1.85	)	—
2000	$	11.27	(0.05	)(4)	1.94		1.89		—		—		—
2001	$	13.16	(0.02	)	(0.15	)	(0.17	)	—		(1.77	)	—
2002	$	11.22	(0.09	)(4)	1.16		1.07		—		—		—
2002(5)	$	12.29	(0.05	)	(2.51	)	(2.56	)	—		—		—
Small Company Stock Fund Y Shares
2000(8)	$	11.50	0.00	(4)(6)	1.68		1.68		—		—		—
2001	$	13.18	0.02		(0.11	)	(0.09	)	—		(1.77	)	—
2002	$	11.32	(0.06	)(4)	1.17		1.11		(0.01	)	—		—
2002(5)	$	12.42	(0.04	)	(2.53	)	(2.57	)	—		—		—
Large Cap Growth Fund R Shares
2000(8)	$	10.00	—		1.73		1.73		—		—		(0.01	)
2001	$	11.72	0.00	(6)	(5.26	)	(5.26	)	—		—		—
2002	$	6.46	(0.03	)(4)	(2.28	)	(2.31	)	—		—		—
2002(5)	$	4.15	(0.01	)	(0.27	)	(0.28	)	—		—		—
U.S. Government Securities Fund R Shares
1998	$	9.41	0.56		0.37		0.93		(0.57	)	—		—
1999	$	9.77	0.52		0.06		0.58		(0.50	)	—		—
2000	$	9.85	0.50		(0.37	)	0.13		(0.51	)	—		—
2001	$	9.47	0.52		0.45		0.97		(0.51	)	—		—
2002	$	9.93	0.45	(4)(10)	0.11	(10)	0.56		(0.49	)	—		—
2002(5)	$	10.00	0.20		0.45		0.65		(0.24	)	—		—
U.S. Government Securities Fund Y Shares
2000(8)	$	9.42	0.19		0.05		0.24		(0.19	)	—		—
2001	$	9.47	0.54		0.45		0.99		(0.53	)	—		—
2002	$	9.93	0.48	(4)(10)	0.11	(10)	0.59		(0.52	)	—		—
2002(5)	$	10.00	0.21		0.45		0.66		(0.25	)	—		—

36

						Ratios to Average Net Assets
Total Distributions		Net Asset Value, end of period		Total Return(2)		Expenses		Net Investment Income (Net Operating Loss)		Expense waiver/ reimbursement(3)		Net Assets, end of period (000 omitted)		Portfolio Turnover
(4.15	)	$	16.57	39.68	%	0.93	%	0.63	%	0.07	%	$	117,115	94	%
(1.75	)	$	15.80	6.50	%	1.22	%	0.26	%	0.26	%	$	101,474	52	%
(2.21	)	$	13.22	(1.04	)%	1.41	%	0.08	%	0.14	%	$	51,968	79	%
(2.71	)	$	8.95	(12.59	)%	1.52	%	(0.29	)%	0.01	%	$	30,385	95	%
(0.08	)	$	7.29	(17.75	)%	1.61	%	(0.46	)%	—		$	21,064	49	%
—		$	5.92	(18.79	)%	1.65	%(7)	(0.08	)%(7)	—		$	15,433	51	%
(0.01	)	$	13.23	6.98	%	1.20	%(7)	0.14	%(7)	0.12	%(7)	$	107,045	79	%
(2.71	)	$	9.02	(12.01	)%	1.27	%	(0.03	)%	0.01	%	$	57,861	95	%
(0.08	)	$	7.36	(17.61	)%	1.36	%	(0.21	)%	—		$	32,406	49	%
—		$	5.98	(18.75	)%	1.40	%(7)	0.17	%(7)	—		$	21,675	51	%
(3.19	)	$	18.80	77.85	%	1.09	%	(0.26	)%	0.09	%	$	58,223	108	%
(1.85	)	$	11.27	(30.33	)%	1.37	%	(0.14	)%	0.26	%	$	38,728	100	%
—		$	13.16	16.77	%	1.60	%	(0.44	)%	0.13	%	$	33,163	116	%
(1.77	)	$	11.22	0.37	%	1.60	%	(0.14	)%	0.00	%(9)	$	16,637	146	%
—		$	12.29	9.54	%	1.66	%	(0.75	)%	—		$	15,114	183	%
—		$	9.73	(20.83	)%	1.65	%(7)	(0.95	)%(7)	—		$	11,262	113	%
—		$	13.18	14.61	%	1.37	%(7)	0.02	%(7)	0.11	%(7)	$	57,182	116	%
(1.77	)	$	11.32	1.04	%	1.35	%	0.12	%	0.00	%(9)	$	38,893	146	%
(0.01	)	$	12.42	9.79	%	1.41	%	(0.50	)%	—		$	29,114	183	%
—		$	9.85	(20.69	)%	1.40	%(7)	(0.70	)%(7)	—		$	21,056	113	%
(0.01	)	$	11.72	17.31	%	1.31	%(7)	(0.15	)%(7)	0.36	%(7)	$	102,961	19	%
—		$	6.46	(44.88	)%	1.22	%	(0.42	)%	0.26	%	$	44,019	62	%
—		$	4.15	(35.76	)%	1.33	%	(0.56	)%	0.33	%	$	15,864	40	%
—		$	3.87	(6.75	)%	1.32	%(7)	(0.29	)%(7)	0.51	%(7)	$	10,212	35	%
(0.57	)	$	9.77	10.14	%	0.82	%	5.87	%	0.40	%	$	34,521	175	%
(0.50	)	$	9.85	6.03	%	0.91	%	5.12	%	0.67	%	$	38,928	55	%
(0.51	)	$	9.47	1.39	%	1.06	%	5.19	%	0.55	%	$	29,898	55	%
(0.51	)	$	9.93	10.44	%	0.93	%	5.27	%	0.55	%	$	25,415	58	%
(0.49	)	$	10.00	5.78	%	0.96	%	4.51	%(10)	0.55	%	$	20,861	64	%
(0.24	)	$	10.41	6.57	%	0.96	%(7)	3.97	%(7)	0.55	%(7)	$	20,337	15	%
(0.19	)	$	9.47	2.58	%	0.81	%(7)	5.57	%(7)	0.55	%(7)	$	102,968	55	%
(0.53	)	$	9.93	10.72	%	0.68	%	5.52	%	0.55	%	$	84,298	58	%
(0.52	)	$	10.00	6.04	%	0.71	%	4.77	%(10)	0.55	%	$	69,463	64	%
(0.25	)	$	10.41	6.70	%	0.71	%(7)	4.22	%(7)	0.55	%(7)	$	57,407	15	%

37

FINANCIAL HIGHLIGHTS—(continued)

Riggs Funds

(For a share outstanding throughout each period)

Year Ended April 30,	Net Asset Value, beginning of period		Net Investment Income (Net Operating Loss)		Net Realized and Unrealized Gain (Loss) on Investments		Total From Investment Operations		Distributions from Net Investment Income		Distributions from Net Realized Gain on Investments
Bond Fund R Shares
2000(8)	$	10.00	0.21		0.01		0.22		(0.21	)	—
2001	$	10.01	0.58		0.49		1.07		(0.58	)	—
2002	$	10.50	0.54	(4)(10)	0.07	(10)	0.61		(0.52	)	—
2002(5)	$	10.59	0.23		0.41		0.64		(0.28	)	—
Intermediate Tax Free Bond Fund R Shares
2000(8)	$	10.00	0.15		(0.02	)	0.13		(0.15	)	—
2001	$	9.98	0.43		0.27		0.70		(0.43	)	—
2002	$	10.25	0.42	(4)(10)	0.12	(10)	0.54		(0.41	)	—
2002(5)	$	10.38	0.20		0.18		0.38		(0.20	)	—
Long Term Tax Free Bond Fund R Shares
2000(8)	$	10.00	0.16		0.01		0.17		(0.16	)	—
2001	$	10.01	0.45		0.34		0.79		(0.46	)	(0.05	)
2002	$	10.29	0.43	(10)	0.18	(10)	0.61		(0.43	)	(0.10	)
2002(5)	$	10.37	0.20		0.34		0.54		(0.20	)	—
Prime Money Market Fund R Shares
1998	$	1.00	0.05		(0.00	)(6)	0.05		(0.05	)	—
1999	$	1.00	0.04		0.00	(6)	0.04		(0.04	)	—
2000	$	1.00	0.04		(0.00	)(6)	0.04		(0.04	)	—
2001	$	1.00	0.05		0.00	(6)	0.05		(0.05	)	—
2002	$	1.00	0.02		(0.00	)(6)	0.02		(0.02	)	—
2002(5)	$	1.00	0.00	(6)	—		0.00	(6)	(0.00	)(6)	—
Prime Money Market Fund Y Shares
1998	$	1.00	0.05		(0.00	)(6)	0.05		(0.05	)	—
1999	$	1.00	0.05		0.00	(6)	0.05		(0.05	)	—
2000	$	1.00	0.05		(0.00	)(6)	0.05		(0.05	)	—
2001	$	1.00	0.06		0.00	(6)	0.06		(0.06	)	—
2002	$	1.00	0.02		(0.00	)(6)	0.02		(0.02	)	—
2002(5)	$	1.00	0.01		—		0.01		(0.01	)	—
U.S. Treasury Money Market Fund R Shares
1999(11)	$	1.00	0.03		—		0.03		(0.03	)	—
2000	$	1.00	0.04		(0.00	)(6)	0.04		(0.04	)	—
2001	$	1.00	0.05		0.00	(6)	0.05		(0.05	)	—
2002	$	1.00	0.02		—		0.02		(0.02	)	—
2002(5)	$	1.00	0.00	(6)	—		0.00	(6)	(0.00	)(6)	—
U.S. Treasury Money Market Fund Y Shares
1998	$	1.00	0.05		—		0.05		(0.05	)	—
1999	$	1.00	0.04		—		0.04		(0.04	)	—
2000	$	1.00	0.04		(0.00	)(6)	0.04		(0.04	)	—
2001	$	1.00	0.05		0.00	(6)	0.05		(0.05	)	—
2002	$	1.00	0.02		—		0.02		(0.02	)	—
2002(5)	$	1.00	0.00	(6)	—		0.00	(6)	(0.00	)(6)	—

38

						Ratios to Average Net Assets
Total Distributions		Net Asset Value, end of period		Total Return(2)		Expenses		Net Investment Income		Expense waiver/ reimbursement(3)		Net Assets, end of period (000 omitted)		Portfolio Turnover
(0.21	)	$	10.01	2.18	%	1.00	%(7)	5.73	%(7)	0.67	%(7)	$	41,597	16	%
(0.58	)	$	10.50	10.94	%	0.87	%	5.63	%	0.67	%	$	37,858	42	%
(0.52	)	$	10.59	5.54	%	0.90	%	5.04	%(10)	0.67	%	$	29,606	83	%
(0.28	)	$	10.95	6.50	%	0.93	%(7)	4.13	%(7)	0.67	%(7)	$	27,434	11	%
(0.15	)	$	9.98	1.31	%	1.00	%(7)	4.16	%(7)	0.61	%(7)	$	66,582	9	%
(0.43	)	$	10.25	7.08	%	0.89	%	4.18	%	0.61	%	$	59,483	25	%
(0.41	)	$	10.38	5.37	%	0.93	%	4.05	%(10)	0.61	%	$	56,280	27	%
(0.20	)	$	10.56	3.70	%	0.94	%(7)	3.78	%(7)	0.57	%(7)	$	53,426	14	%
(0.16	)	$	10.01	1.76	%	1.00	%(7)	4.57	%(7)	0.60	%(7)	$	69,119	0	%
(0.51	)	$	10.29	8.00	%	0.91	%	4.48	%	0.60	%	$	57,481	48	%
(0.53	)	$	10.37	6.02	%	0.93	%	4.09	%(10)	0.60	%	$	48,389	25	%
(0.20	)	$	10.71	5.25	%	0.93	%(7)	3.87	%(7)	0.60	%(7)	$	44,216	6	%
(0.05	)	$	1.00	4.92	%	1.00	%	4.51	%	0.18	%	$	508	—
(0.04	)	$	1.00	4.49	%	1.03	%	4.25	%	0.46	%	$	8,422	—
(0.04	)	$	1.00	4.53	%	1.07	%	4.55	%	0.40	%	$	23,842	—
(0.05	)	$	1.00	5.32	%	1.07	%	5.13	%	0.40	%	$	103,460	—
(0.02	)	$	1.00	1.96	%	1.07	%	1.90	%	0.40	%	$	43,742	—
(0.00	)(6)	$	1.00	0.42	%	1.06	%(7)	0.83	%(7)	0.40	%(7)	$	36,018	—
(0.05	)	$	1.00	5.22	%	0.58	%	5.11	%	0.11	%	$	318,122	—
(0.05	)	$	1.00	4.76	%	0.69	%	4.65	%	0.25	%	$	425,054	—
(0.05	)	$	1.00	4.90	%	0.72	%	4.83	%	0.25	%	$	323,076	—
(0.06	)	$	1.00	5.69	%	0.72	%	5.56	%	0.25	%	$	243,367	—
(0.02	)	$	1.00	2.31	%	0.72	%	2.30	%	0.25	%	$	230,531	—
(0.01	)	$	1.00	0.60	%	0.71	%(7)	1.18	%(7)	0.25	%(7)	$	176,762	—
(0.03	)	$	1.00	3.35	%	1.08	%(7)	3.86	%(7)	0.47	%(7)	$	3,309	—
(0.04	)	$	1.00	4.20	%	1.10	%	4.20	%	0.40	%	$	4,373	—
(0.05	)	$	1.00	5.11	%	1.08	%	5.03	%	0.40	%	$	5,449	—
(0.02	)	$	1.00	1.77	%	1.08	%	1.02	%	0.40	%	$	42,919	—
(0.00	)(6)	$	1.00	0.32	%	1.08	%(7)	0.63	%(7)	0.40	%(7)	$	24,695	—
(0.05	)	$	1.00	5.00	%	0.63	%	4.88	%	0.08	%	$	117,424	—
(0.04	)	$	1.00	4.49	%	0.72	%	4.39	%	0.25	%	$	138,097	—
(0.04	)	$	1.00	4.57	%	0.75	%	4.52	%	0.25	%	$	150,085	—
(0.05	)	$	1.00	5.48	%	0.73	%	5.35	%	0.25	%	$	159,287	—
(0.02	)	$	1.00	2.12	%	0.73	%	2.26	%	0.25	%	$	81,867	—
(0.00	)(6)	$	1.00	0.50	%	0.73	%(7)	0.98	%(7)	0.25	%(7)	$	57,240	—

39

FINANCIAL HIGHLIGHTS—(continued)

Riggs Funds

(1) Represents a return of capital for federal income tax purposes.

(2) Based on net asset value, which does not reflect the sales charge or contingent deferred sales charge, if applicable.

(3) This voluntary expense decrease is reflected in both the expense and the net investment income (net operating loss) ratios shown above.

(4) Per share amount is based upon the average number of shares outstanding.

(5) For the six months ended October 31, 2002 (unaudited).

(6) Per share amount does not round to $0.01 or $(0.01).

(7) Computed on an annualized basis.

(8) Reflects operations for the period from December 20, 1999 (date of initial public investment) to April 30, 2000.

(9) Percentage amount does not round to 0.01%.

(10) Effective May 1, 2001, the U.S. Government Securities Fund, Bond Fund, Intermediate Tax Free Bond Fund and Long Term Tax Free Bond Fund adopted the provisions of the American Institute of Certified Public Accountants (“AICPA”) Audit and Accounting Guide for Investment Companies and began accreting discount/amortizing premium on long-term debt securities. The effect of this change for the year ended April 30, 2002 was as follows:

	Net Investment Income per Share			Net Realized/Unrealized Gain (Loss) per Share			Ratio of Net Investment Income to Average Net Assets
Increase (Decrease)
U.S. Government Securities Fund R Shares	$	(0.07	)	$	0.07		(0.57	)%
U.S. Government Securities Fund Y Shares		(0.07	)		0.07		(0.58	)%
Bond Fund R Shares		(0.04	)		0.04		(0.24	)%
Intermediate Tax Free Bond Fund R Shares		0.01			(0.01	)	0.07	%
Long Term Tax Free Bond Fund R Shares		—			—		0.01	%
Per share, ratios and supplemental data for periods prior May 1, 2001 have not been restated to reflect this change in presentation.

(11) Reflects operations for the period from July 7, 1998 (date of initial public investment) to April 30, 1999.

See Notes which are an integral part of the Financial Statements.

40

COMBINED NOTES TO FINANCIAL STATEMENTS

Riggs Funds

October 31, 2002 (unaudited)

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 Trust consists of nine diversified portfolios (individually referred to as the “Fund”, or collectively as the “Funds”), which are presented herein:

Portfolio Name	Investment Objective
Riggs Stock Fund (“Stock Fund”)	Seeks to provide growth of capital and income.
Riggs Small Company Stock Fund (“Small Company Stock Fund”)	Seeks to provide long-term capital appreciation.
Riggs Large Cap Growth Fund (“Large Cap Growth Fund”)	Seeks to provide capital appreciation.
Riggs U.S. Government Securities Fund (“U.S. Government Securities Fund “)	Seeks to achieve current income.
Riggs Bond Fund (“Bond Fund”)	Seeks to provide as high a level of current income as is consistent with the preservation of capital.
Riggs Intermediate Tax Free Bond Fund (“Intermediate Tax Free Bond Fund”)	Seeks to provide a high level of current income which is exempt from federal income tax consistent with the preservation of principal.
Riggs Long Term Tax Free Bond Fund (“Long Term Tax Free Bond Fund”)	Seeks to provide a high level of current income which is exempt from federal income tax.
Riggs Prime Money Market Fund (“Prime Money Market Fund”)	Seeks to provide current income consistent with stability of principal and liquidity.
Riggs U.S. Treasury Money Market Fund (“U.S. Treasury Money Market Fund”)	Seeks to provide current income consistent with stability of principal and liquidity.

The assets of each portfolio are segregated and a shareholder’s interest is limited to the portfolio in which shares are held.

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 (“GAAP”).

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 are valued at the last sale price reported on a primary 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. Investments in other open-end regulated investment companies are valued at net asset value. Securities for which there are no quotations are readily available are valued at fair value as determined in good faith using methods approved by the Board of Trustees (the “Trustees”).

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.

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 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. All discounts/premiums are accreted/amortized for financial reporting purposes as required. Dividend income and distributions to shareholders are recorded on the ex-dividend date. Non-cash dividends included in dividend income, if any, are recorded at fair

41

Riggs Funds

value. The Funds (except Bond Fund, Intermediate Tax Free Bond Fund, Large Cap Growth Fund and Long Term Tax Free Bond Fund) offer multiple classes of shares, which differ in their respective distribution and service fees. All shareholders bear the common expenses of the Funds based on average daily net assets of each class, without distinction between share classes. Dividends are declared separately for each class. No class has preferential dividend rights; differences in per share dividend rates are generally due to differences in separate class expenses.

Effective May 1, 2001, the Trust adopted the provisions of the AICPA Audit and Accounting Guide for Investment Companies, the U.S. Government Securities Fund and Bond Fund began accreting discount/amortizing premium on long-term debt securities and the Intermediate Tax Free Bond Fund and Long Term Tax Free Fund began accreting discount on debt securities. The effect of this accounting change had no impact on total net assets of these Funds, but resulted in the following adjustments based on securities held by the Funds on May 1, 2001:

	Cost of Investments			Undistributed Net Investment Income			Accumulated Net Realized Gain (Loss)
U.S. Government Securities Fund	$	(214,733	)	$	(470,870	)	$	256,137
Bond Fund		(153,229	)		(188,557	)		35,328
Intermediate Tax Free Bond Fund		47,589			47,589			—
Long Term Tax Free Bond Fund		6,812			6,812			—

The effect of this change for the year ended April 30, 2002 was as follows:

	Net Investment Income			Net Unrealized Appreciation (Depreciation)			Net Realized Gain (Loss)
U.S. Government Securities Fund	$	(583,180	)	$	59,721		$	523,459
Bond Fund		(75,409	)		(109,961	)		185,370
Intermediate Tax Free Bond Fund		36,633			(3,435	)		(33,198	)
Long Term Tax Free Fund		6,690			(4,508	)		(2,182	)

The statement of changes in net assets and financial highlights for prior periods have not been restated to reflect this change in presentation. For the Funds of the Trust not indicated above, the adoption of the guide did not have any effect on their financial statements.

Federal Taxes

It is the Funds’ policy to comply with the provisions of the Internal Revenue Code, as amended (the “Code”), applicable to regulated investment companies and to distribute to shareholders each year substantially all of their income. Accordingly, no provision for federal tax is necessary.

At April 30, 2002, the following Funds had capital loss carryforwards for federal tax purposes, which will reduce each Fund’s taxable income arising from future net realized gain 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 each Fund of any liability for federal tax. Pursuant to the Code, such capital loss carryforwards will expire as follows:

Fund	Capital Loss Carryforward To Expire in 2003		Capital Loss Carryforward To Expire in 2005		Capital Loss Carryforward To Expire in 2006		Capital Loss Carryforward To Expire in 2008		Capital Loss Carryforward To Expire in 2009		Capital Loss Carryforward To Expire in 2010		Total Capital Loss Carryforward
Stock Fund	$	—	$	—	$	—	$	—	$	—	$	72,047	$	72,047
Large Cap Growth Fund		—		—		—		—		561,936		14,235,430		14,797,366
U.S. Government Securities Fund		795,392		470,326		—		7,963		—		—		1,273,681
Bond Fund		—		—		—		—		153,961		181,097		335,058
Prime Money Market Fund		20,474		14,610		4,102		451		—		1,152		40,789

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. Losses may occur on these transactions due to changes in market conditions or the failure of counterparties to perform under the contract.

42

Riggs Funds

Securities Lending

Under guidelines adopted by the Trustees, each Fund may lend portfolio securities to brokers/dealers and other financial organizations in order to generate additional income. Loans of portfolio securities by a Fund will be collateralized by cash, letters of credit or U.S. government securities, which are maintained at a minimum level of 100% of the current market value of the loaned securities. Collateral is either held as cash or reinvested in short-term securities including overnight repurchase agreements, commercial paper, master notes, floating rate corporate notes (with at least quarterly reset rates) and money market funds. The Funds return a portion of the interest on any cash received as collateral and continue to receive interest or dividends on securities loaned. Included in interest income is $716, $4,877, $9,166, $2,116, $529, and $8,692 for Stock Fund, Small Company Stock Fund, U.S. Government Securities Fund, Bond Fund, Prime Money Market Fund, and U.S. Treasury Money Market Fund, respectively, attributable to income earned on securities lending transactions.

Loans will be made to firms deemed by the Funds’ adviser to be of good financial standing and will not be made unless, in the judgment of the Funds’ adviser, the consideration to be earned from such loans would justify the risk. The risks associated with lending portfolio securities consist of possible decline in value of collateral, possible delays receiving additional collateral or in the recovery of the loaned securities or expenses from enforcing the Funds’ rights should the borrower of the securities fail financially.

As of October 31, 2002, the value of securities loaned plus interest, the payable on collateral due to broker and the value of reinvested cash collateral securities were as follows:

Fund	Market Value of Securities Loaned		Payable on Collateral Due Broker		Reinvested Collateral Securities
Stock Fund	$	891,635	$	960,247	$	960,247
Small Company Stock Fund	$	2,306,444	$	2,564,699	$	2,564,699
U.S. Government Securities Fund	$	20,254,183	$	20,951,322	$	20,951,322
Bond Fund	$	7,196,114	$	7,457,310	$	7,457,310
Prime Money Market Fund	$	1,601,579	$	1,681,040	$	1,681,040
U.S. Treasury Money Market Fund	$	24,053,903	$	24,090,336	$	24,090,336

Cash collateral is held in segregated account.

Use of Estimates

The preparation of financial statements in conformity with GAAP 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 a trade date basis.

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:

	Stock Fund
	Six Months Ended October 31, 2002					Year Ended April 30, 2002
Class R Shares	Amount			Shares		Amount			Shares
Shares sold	$	731,456		115,752		$	2,822,421		354,929
Shares issued to shareholders in payment of distributions declared		—		—			202,760		26,128
Shares redeemed		(2,483,393	)	(397,943	)		(7,152,859	)	(884,288	)
Net change resulting from Class R Share transactions	$	(1,751,937	)	(282,191	)	$	(4,127,678	)	(503,231	)
	Stock Fund
	Six Months Ended October 31, 2002					Year Ended April 30, 2002
Class Y Shares	Amount			Shares		Amount			Shares
Shares sold	$	320,800		44,712		$	2,708,138		341,244
Shares issued to shareholders in payment of distributions declared		—		—			3,305		422
Shares redeemed		(5,146,283	)	(825,464	)		(19,224,745	)	(2,354,409	)
Net change resulting from Class Y Share transactions	$	(4,825,483	)	(780,752	)	$	(16,513,302	)	(2,012,743	)
Net change resulting from share transactions	$	(6,577,420	)	(1,062,943	)	$	20,640,980		(2,515,974	)

43

Riggs Funds

	Small Company Stock Fund
	Six Months Ended October 31, 2002					Year Ended April 30, 2002
Class R Shares	Amount			Shares		Amount			Shares
Shares sold	$	445,322		41,728		$	1,419,366		126,886
Shares redeemed		(1,143,885	)	(113,788	)		(4,286,239	)	(380,334	)
Net change resulting from Class R Shares transactions	$	(698,563	)	(72,060	)	$	(2,866,873	)	(253,448	)
	Small Company Stock Fund
	Six Months Ended October 31, 2002					Year Ended April 30, 2002
Class Y Shares	Amount			Shares		Amount			Shares
Shares sold	$	1,378,956		137,117		$	1,657,790		144,092
Shares issued to shareholders in payment of distributions declared		—		—			170		15
Shares redeemed		(3,448,679	)	(342,147	)		(13,974,276	)	(1,236,599	)
Net change resulting from Class Y Shares transactions	$	(2,069,723	)	(205,030	)	$	(12,316,316	)	(1,092,492	)
Net change resulting from share transactions	$	(2,768,286	)	(277,090	)	$	(15,183,189	)	(1,345,940	)
	Large Cap Growth Fund
	Six Months Ended October 31, 2002					Year Ended April 30, 2002
Class R Shares	Amount			Shares		Amount			Shares
Shares sold	$	12,980		3,418		$	763,436		155,033
Shares redeemed		(4,638,593	)	(1,193,035	)		(15,887,315	)	(3,140,041	)
Net change resulting from Class R Share transactions	$	(4,625,613	)	(1,189,617	)	$	(15,123,879	)	(2,985,008	)
	U.S. Government Securities Fund
	Six Months Ended October 31, 2002					Year Ended April 30, 2002
Class R Shares	Amount			Shares		Amount			Shares
Shares sold	$	1,910,269		185,710		$	4,917,103		490,037
Shares issued to shareholders in payment of distributions declared		284,035		27,775			817,757		81,469
Shares redeemed		(3,550,653	)	(346,621	)		(10,435,048	)	(1,043,545	)
Net change resulting from Class R Shares transactions	$	(1,356,349	)	(133,136	)	$	(4,700,188	)	(472,039	)
	U.S. Government Securities Fund
	Six Months Ended October 31, 2002					Year Ended April 30, 2002
Class Y Shares	Amount			Shares		Amount			Shares
Shares sold	$	734,786		72,499		$	5,153,348		510,018
Shares issued to shareholders in payment of distributions declared		10,145		994			9,330		936
Shares redeemed		(15,522,117	)	(1,507,941	)		(20,607,639	)	(2,049,930	)
Net change resulting from Class Y Shares transactions	$	(14,777,186	)	(1,434,448	)	$	(15,444,961	)	(1,538,976	)
Net change resulting from share transactions	$	(16,133,535	)	(1,567,584	)	$	(20,145,149	)	(2,011,015	)

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Riggs Funds

	Bond Fund
	Six Months Ended October 31, 2002					Year Ended April 30, 2002
Class R Shares	Amount			Shares		Amount			Shares
Shares sold	$	586,566		54,730		$	2,484,422		234,909
Shares issued to shareholders in payment of distributions declared		3,013		279			18,200		1,710
Shares redeemed		(3,739,091	)	(345,336	)		(11,092,833	)	(1,046,705	)
Net change resulting from Class R Share transactions	$	(3,149,512	)	(290,327	)	$	(8,590,211	)	(810,086	)
	Intermediate Tax Free Bond Fund
	Six Months Ended October 31, 2002					Year Ended April 30, 2002
Class R Shares	Amount			Shares		Amount			Shares
Shares sold	$	895,035		85,650		$	4,643,570		449,726
Shares issued to shareholders in payment of distributions declared		3,299		313			6,923		667
Shares redeemed		(4,747,347	)	(449,221	)		(8,590,863	)	(829,763	)
Net change resulting from Class R Share transactions	$	(3,849,013	)	(363,258	)	$	(3,940,370	)	(379,370	)
	Long Term Tax Free Bond Fund
	Six Months Ended October 31, 2002					Year Ended April 30, 2002
Class R Shares	Amount			Shares		Amount			Shares
Shares sold	$	707,556		67,789		$	653,807		62,284
Shares issued to shareholders in payment of distributions declared		1,701		160			7,222		691
Shares redeemed		(6,448,874	)	(605,989	)		(10,260,946	)	(983,327	)
Net change resulting from Class R Share transactions	$	(5,739,617	)	(538,040	)	$	(9,599,917	)	(920,352	)
	Prime Money Market Fund
	Six Months Ended October 31, 2002					Year Ended April 30, 2002
Class R Shares	Amount			Shares		Amount			Shares
Shares sold	$	28,505,616		28,505,616		$	136,039,399		136,039,399
Shares issued to shareholders in payment of distributions declared		135,547		135,547			925,886		925,886
Shares redeemed		(36,365,179	)	(36,365,179	)		(196,680,536	)	(196,680,536	)
Net change resulting from Class R Shares transactions	$	(7,724,016	)	(7,724,016	)	$	(59,715,251	)	(59,715,251	)
	Prime Money Market Fund
	Six Months Ended October 31, 2002					Year Ended April 30, 2002
Class Y Shares	Amount			Shares		Amount			Shares
Shares sold	$	228,922,588		228,876,540		$	586,155,000		586,155,000
Shares issued to shareholders in payment of distributions declared		191,270		191,270			1,019,900		1,019,900
Shares redeemed		(282,880,645	)	(282,880,645	)		(599,997,607	)	(599,997,607	)
Net change resulting from Class Y Shares transactions	$	(53,766,787	)	(53,812,835	)	$	(12,822,707	)	(12,822,707	)
Net change resulting from share transactions	$	(61,490,803	)	(61,536,851	)	$	(72,537,958	)	(72,537,958	)

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Riggs Funds

	U.S. Treasury Money Market Fund
	Six Months Ended October 31, 2002					Year Ended April 30, 2002
Class R Shares	Amount			Shares		Amount			Shares
Shares sold	$	63,999,188		63,999,188		$	90,810,472		90,810,471
Shares issued to shareholders in payment of distributions declared		14,675		14,675			109,240		109,240
Shares redeemed		(82,237,323	)	(82,237,323	)		(53,450,027	)	(53,450,027	)
Net change resulting from Class R Share transactions	$	(18,223,460	)	(18,223,460	)	$	37,469,685		37,469,684
	U.S. Treasury Money Market Fund
	Six Months Ended October 31, 2002					Year Ended April 30, 2002
Class Y Shares	Amount			Shares		Amount			Shares
Shares sold	$	75,556,792		75,556,792		$	265,931,520		265,931,521
Shares issued to shareholders in payment of distributions declared		48,010		48,010			288,128		288,128
Shares redeemed		(100,233,128	)	(100,233,128	)		(343,640,166	)	(343,640,166	)
Net change resulting from Class Y Share transactions	$	(24,628,326	)	(24,628,326	)	$	(77,420,518	)	(77,420,517	)
Net change resulting from share transactions	$	(42,851,786	)	(42,851,786	)	$	(39,950,833	)	(39,950,833	)

Investment Adviser Fee and Other Transactions with Affiliates

Investment Adviser Fee

Riggs Securities Inc., the Funds’ investment adviser (the “Adviser”), receives for its services an annual investment adviser 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
Stock Fund	0.75	%
Small Company Stock Fund	0.80	%
Large Cap Growth Fund	0.75	%
U.S. Government Securities Fund	0.75	%
Bond Fund	0.75	%
Intermediate Tax Free Bond Fund	0.75	%
Long Term Tax Free Bond Fund	0.75	%
Prime Money Market Fund	0.50	%
U.S. Treasury Money Market Fund	0.50	%

Sub-Advisers

The Adviser has delegated daily management of the Funds to the following sub-advisers: Riggs Investment Advisors Inc. (with respect to Stock Fund, Small Company Stock Fund, U.S. Government Securities Fund, Bond Fund, Intermediate Tax Free Bond Fund, Long Term Tax Free Bond Fund, Prime Money Market Fund and U.S. Treasury Money Market Fund). Large Cap Growth Fund is managed directly by the Adviser. The sub-adviser is paid by the Adviser and not by the Funds.

Administrative Fee

Federated Services Company (“FServ”) and Riggs Banks, N.A. serve as co-administrators to the Trust and provide the Funds with certain administrative personnel and services necessary to operate the Funds. Administrative services are provided for an aggregate annual fee as specified below:

Fees Payable to FServ: Maximum Administrative fee	Average Daily Net Assets of the Riggs Group of Funds
0.140%	on the first $1.2 billion
0.120%	on the next $1.3 billion
0.100%	on the next $1.0 billion
0.080%	on assets in excess of $3.5 billion

Fees payable to Riggs Bank, N.A.:

Riggs Bank, N.A. provides these services for an annual fee of 0.020% of the average daily net assets of the Funds.

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Riggs Funds

Distribution Services Fee

The Funds have adopted a Distribution Plan (the “Plan”) pursuant to Rule 12b-1 under the Act. Under the terms of the Plan, the Funds will compensate Federated Securities Corp. (“FSC”), the principal distributor, from the net assets of the Funds to finance activities intended to result in the sale of the Funds’ Class R Shares. The Plan provides that the Funds may incur distribution expenses according to the following schedule annually, to compensate FSC. FSC may voluntarily choose to waive any portion of its fee. FSC can modify or terminate this voluntary waiver at any time at its sole discretion.

Share Class Name	Percentage of Average Net Assets of Class
Class R Shares	0.25	%

The Class R Shares of Prime Money Market Fund and U.S. Treasury Money Market Fund may pay FSC a fee computed at an annual rate of up to 0.50% of their average daily net assets.

Shareholder Services Fee

Under the terms of a Shareholder Services Agreement with Federated Shareholder Services Company (“FSSC”), the Funds pay up to 0.25% of average daily net assets of the Funds for the period. The fee is paid to FSSC to finance certain services for shareholders and to maintain shareholder accounts. FSSC may voluntarily choose to waive any portion of its fee. FSSC can modify or terminate this voluntary waiver at any time at its sole discretion.

Transfer and Dividend Disbursing Agent Fees and Expenses

FServ, through its subsidiary FSSC, serves as transfer and dividend disbursing agent for the Funds. The fee paid to FSSC is based on the size, type, and number of accounts and transactions made by shareholders.

Portfolio Accounting Fees

FServ maintains the Funds’ accounting records for which it receives a fee. The fee is based on the level of the Funds’ average daily net assets for the period, plus out-of-pocket expenses.

Custodian Fees

Riggs Bank N.A., Washington D.C. is the Funds’ custodian. The fee paid to Riggs Bank N.A., Washington D.C. is based on the level of each Fund’s average daily net assets for the period, plus out-of-pocket expenses.

General

Certain of the Officers and Trustees of the Trust are Officers and Directors or Trustees of the above companies.

Investment Transactions

Purchases and sales of investments, excluding long-term U. S. government securities and short-term obligations (and in-kind contributions), for the six months ended October 31, 2002, were as follows:

Fund	Purchases		Sales
Stock Fund	$	22,307,781	$	27,356,445
Small Company Stock Fund	$	36,610,830	$	36,757,093
Large Cap Growth Fund	$	3,607,443	$	6,920,151
U.S. Government Securities Fund		—		—
Bond Fund		—	$	333,503
Intermediate Tax Free Bond Fund	$	7,228,426	$	13,254,750
Long Term Tax Free Bond Fund	$	2,801,158	$	9,122,445

Purchases and sales of long-term U.S. government securities for the six months ended October 31, 2002, were as follows.

Fund	Purchases		Sales
U.S. Government Securities Fund	$	12,369,271	$	26,845,459
Bond Fund	$	2,897,145	$	5,093,897

Change in Independent Auditors (Unaudited)

On April 12, 2002, the Board of Trustees of the Funds, upon the recommendation of the Board’s audit committee, determined not to retain Arthur Andersen LLP and approved a change of the Fund’s independent auditors to KPMG LLP. For the fiscal years ended April 30, 2001 and April 30, 2000, Arthur Andersen LLP’s audit reports contained no adverse opinion or disclaimer of opinion; nor were their reports qualified or modified as to uncertainty, audit scope, or accounting principles. Further, there were no disagreements between the Funds and Arthur Andersen LLP on accounting principles or practices, financial statement disclosure or audit scope or procedure, which if not resolved to the satisfaction of Arthur Andersen LLP would have caused them to make reference to the disagreement in their report.

Subsequent Event

Subject to shareholder approval, it is proposed that Riggs Large Cap Growth Fund’s assets be acquired in a tax-free reorganization by Federated Growth Strategies Fund, and in connection therewith, each share of Riggs Large Cap Growth Fund be invested, at net asset value, into the appropriate number of Class A Shares of Federated Growth Strategies Fund, thereby terminating the existence of Riggs Large Cap Growth Fund.

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Mutual funds are not bank deposits or obligations, are not guaranteed by any bank, and are not insured or guaranteed by the U.S. government, 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.

This report is authorized for distribution to prospective investors only when preceded or accompanied by the Funds’ prospectus which contains facts concerning the Funds’ objectives and policies, management fees, expenses and other information.

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