MAXFUND TRUST
497, 1999-04-29
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<PAGE>
                                MAXUS INCOME FUND
                                MAXUS EQUITY FUND
                               MAXUS LAUREATE FUND
                            MAXUS OHIO HEARTLAND FUND
                           MAXUS AGGRESSIVE VALUE FUND

                                 Investor Shares
                              Institutional Shares

Maxus Income Fund has an  investment  objective of obtaining  the highest  total
return,  a  combination  of income and  capital  appreciation,  consistent  with
reasonable  risk.  The Fund  pursues this  objective  by investing  primarily in
income-producing securities.

Maxus Equity Fund has an  investment  objective of obtaining a total  return,  a
combination of capital  appreciation and income. The Fund pursues this objective
by investing primarily in equity securities.

Maxus  Laureate  Fund has an  investment  objective  of  achieving  a high total
return,  a  combination  of capital  appreciation  and income,  consistent  with
reasonable risk. This Fund pursues its objective by investing primarily in other
mutual funds which invest on a global basis.

Maxus Ohio Heartland Fund has an investment  objective of obtaining a high total
return (a combination of income and capital appreciation). The Fund pursues this
objective by investing primarily in equity securities of companies headquartered
in the State of Ohio.

Maxus  Aggressive  Value Fund has an investment  objective of obtaining  capital
appreciation.  The Fund pursues this objective by investing  primarily in equity
securities  of companies  whose equity  securities  have a total market value of
between $10,000,000 and $200,000,000.

As with all  mutual  funds,  the  Securities  and  Exchange  Commission  has not
approved or  disapproved  these  securities  or passed upon the adequacy of this
prospectus, and any representation to the contrary is a criminal offense.

                      PROSPECTUS/April 30, 1999
<PAGE>
                          MAXUS INCOME FUND
                         RISK/RETURN SUMMARY

Investment Objective and Main Investment Strategies

     The  investment  objective  of Maxus  Income  Fund is to obtain the highest
total return, a combination of income and capital appreciation,  consistent with
reasonable  risk.  The Fund  pursues this  objective  by investing  primarily in
income-producing  securities  (such as debt  securities,  preferred  stocks  and
common and preferred  shares of closed-end  investment  companies (also known as
"closed-end funds") having portfolios  consisting  primarily of income-producing
securities).  Certain of the debt  securities and preferred  stocks in which the
Fund invests may be convertible into common shares. To a lesser degree, the Fund
will invest directly in common shares bearing high dividends.

     Maxus Income Fund will alter the  composition  of its portfolio as economic
and market trends change. The Adviser will increase its investment in short-term
debt  securities  during  periods when it believes  interest rates will rise and
will  increase its  investment  in long-term  debt  securities  when it believes
interest rates will decline.  Maxus Income Fund may invest in debt securities of
any maturity.

     In selecting  corporate  debt  securities for Maxus Income Fund the Adviser
intends to invest  principally  in securities  rated BBB or better by Standard &
Poor's Corporation rating service,  but may invest in securities rated as low as
BB, B, CCC or CC or unrated  securities  when these  investments are believed by
the Adviser to be sound. The Fund will not invest more than 20% of its portfolio
in (i) securities rated BB or lower by Standard & Poor's Corporation and/or (ii)
unrated  securities  which,  in the  opinion  of  the  Adviser,  are of  quality
comparable  to those  rated BB or  lower.  Securities  rated  lower  than BBB by
Standard & Poor's, sometimes referred to as "junk bonds," are usually considered
lower-rated  securities and have  speculative  characteristics.  Please refer to
Appendix A of this Prospectus for a description of these ratings.

     In  selecting  closed-end  funds for Maxus  Income  Fund,  the Adviser will
invest in closed-end funds which, in choosing corporate debt securities in which
they invest,  adhere to ratings  criteria no less strict than those  followed by
Maxus  Income  Fund in  selecting  its  direct  investments  in  corporate  debt
securities. Such closed-end funds may invest in debt securities of United States
or foreign issuers.

     When the  Adviser  believes  that  market  conditions  warrant a  temporary
defensive posture,  the Fund may invest up to 100% of its assets in high-quality
short-term  debt securities and money market  instruments.  The taking of such a
temporary  defensive  posture  may  adversely  impact the ability of the Fund to
achieve its investment objective.

Main Risks

     Volatility.  The value of securities in Maxus Income Fund's  portfolio will
go up and down.  The  Fund's  portfolio  will  reflect  changes in the prices of
individual  portfolio  securities or general  changes in securities  valuations.
Consequently, the Fund's share price may decline and you could lose money.
<PAGE>
     Debt  Securities  Risks.  The Fund's  portfolio will also be exposed to the
following additional risks in connection with its investments in debt securities
and in closed-end funds which invest primarily in debt securities:

     -    Prices of debt  securities  rise and fall in response to interest rate
          changes for similar securities.  Generally,  when interest rates rise,
          prices of debt  securities  fall.  The net asset value of the Fund may
          decrease during periods of rising interest rates.

     -    An issuer of debt  securities  may default (fail to repay interest and
          principal when due). If an issuer defaults or the risk of such default
          is perceived to have increased,  the Fund will lose all or part of its
          investment. The net asset value of the Fund may fall during periods of
          economic downturn when such defaults or risk of defaults increase.

     -    Securities  rated below  investment  grade,  also known as junk bonds,
          generally entail greater risks than investment grade  securities.  For
          example,  their  prices  are  more  volatile,  their  values  are more
          negatively  impacted by economic  downturns,  and their trading market
          may be more limited.

     Closed-End  Funds. The closed-end funds in which the Fund invests typically
pay an advisory fee for the  management  of their  portfolios,  as well as other
expenses.  Therefore,  the  investment  by the Fund in  closed-end  funds  often
results in a duplication of advisory fees and other expenses,  thereby resulting
in a lower  return  for the Fund than  would be the case in the  absence of such
duplication.

     In addition,  since these closed-end funds invest in debt securities,  they
are subject to the same risks described above in "Debt Securities Risks".

     Also,  certain of the  closed-end  funds in which Maxus Income Fund invests
may invest part or all of their assets in debt  securities  of foreign  issuers.
Such investments involve the following additional risks:

     -    Because  foreign  securities  ordinarily are denominated in currencies
          other than the U.S. dollar, changes in foreign currency exchange rates
          will  affect  the  closed-end  fund's  net asset  value,  the value of
          dividends and interest  earned,  gains and losses realized on the sale
          of securities and net  investment  income and capital gain, if any, to
          be distributed to shareholders by the closed-end fund. If the value of
          a foreign currency declines against the U.S. dollar,  the value of the
          closed-end  fund's assets  denominated in that currency will decrease.
          Although these closed-end funds may enter into "hedging"  transactions
          intended to minimize the risk of loss due to a decline in the value of
          the subject  foreign  currency,  in some cases all or a portion of the
          closed-end fund's portfolio remains subject to this risk of loss.

     -    There  are  additional  risks  relating  to  political,  economic,  or
          regulatory  conditions  in  foreign  countries;  withholding  or other
          taxes; trading,  settlement,  custodial,  and other operational risks;
          and the potentially less stringent investor  protection and disclosure
          standards of foreign  markets.  All of these  factors can make foreign
          investments  of such  closed-end  funds more volatile and  potentially
          less liquid than U.S. investments.
<PAGE>
Bar Chart and Performance Table

The bar  chart and table  shown  below  provide  an  indication  of the risks of
investing in Maxus Income Fund by showing changes in the Fund's performance from
year to year over a 10-year  period and by showing how the Fund's average annual
returns  for  one,  five,  and ten  years  compare  to  those  of a  broad-based
securities  market  index.  How  the  Fund  has  performed  in the  past  is not
necessarily an indication of how the Fund will perform in the future.

                          Maxus Income Fund
                           Investor Shares




                             [Bar Chart]







 1989   1990   1991   1992   1993   1994   1995   1996   1997   1998

 11.4%  1.7%   19.3%   7.9%   8.7%  -4.5%  16.4%   9.2%  11.5%   3.5%


     During the 10-year period shown in the bar chart,  the highest return for a
quarter was 7.79%  (quarter  ending March 31, 1991) and the lowest  return for a
quarter was -3.76% (quarter ending March 31, 1994).



   Average Annual Total Returns        Past       Past        Past
 (for the periods ending December    One Year    5 Years    10 Years
            31, 1998)


        Maxus Income Fund             3.49%       6.98%      8.31%


  Lehman Intermediate Corporate        8.3%       7.17%      9.19%
              Index*



* The  Lehman  Intermediate  Corporate  Index is an index  of  investment  grade
corporate bonds having at least  $100,000,000  principal amount  outstanding and
maturities of from one to ten years.
<PAGE>
                          MAXUS EQUITY FUND
                         RISK/RETURN SUMMARY

Investment Objective and Main Strategies

     The investment  objective of Maxus Equity Fund is to obtain a total return,
a  combination  of capital  appreciation  and  income.  This Fund  pursues  this
objective by investing primarily in equity securities of both smaller and larger
companies.  Under normal  circumstances  at least 65% of the Fund's total assets
will consist of equity securities. Equity securities consist of common stock and
securities convertible into common stock. The Fund emphasizes a "value" style of
investing.  In deciding  which  securities to buy and which to sell, the Adviser
will give primary consideration to fundamental factors. For example,  securities
having  relatively  low ratios of share  price to book value,  net asset  value,
earnings and cash flow will  generally  be  considered  attractive  investments.
Additionally,   the  Adviser  will  give  secondary   consideration  to  insider
transactions and the growth of earnings.

     When the  Adviser  believes  that  market  conditions  warrant a  temporary
defensive posture,  the Fund may invest up to 100% of its assets in high-quality
short-term  debt securities and money market  instruments.  The taking of such a
temporary  defensive  posture  may  adversely  affect the ability of the Fund to
achieve its investment objective.

Main Risks

     Volatility.  The value of securities in Maxus Equity Fund's  portfolio will
go up and down.  The  Fund's  portfolio  will  reflect  changes in the prices of
individual  portfolio  securities or general  changes in securities  valuations.
Consequently, the Fund's share price may decline and you could lose money.

     Smaller  Companies.  The  prices of equity  securities  fluctuate  based on
changes in a company's  activities and financial condition and in overall market
conditions.  While  Maxus  Equity  Fund  invests  in  both  smaller  and  larger
companies,  the  smaller  companies  in which the Fund  invests  are  especially
sensitive to these  factors and  therefore may be subject to greater share price
fluctuations than other companies.  Also,  securities of these smaller companies
are often less liquid, thus possibly limiting the ability of the Fund to dispose
of such  securities when the Adviser deems it desirable to do so. As a result of
these factors,  securities of these smaller companies may expose shareholders of
the Fund to above average risk.
<PAGE>
Bar Chart and Performance Table

     The bar chart and table shown below  provide an  indication of the risks of
investing in Maxus Equity Fund by showing changes in the Fund's performance from
year to year over the life of the Fund and by  showing  how the  Fund's  average
annual returns for one and five year peroids and the life of the Fund compare to
those of a broad-based  securities  market index.  How the Fund has performed in
the past is not  necessarily  an  indication of how the Fund will perform in the
future.

                          Maxus Equity Fund
                           Investor Shares





                             [Bar Chart]







 1990    1991    1992    1993   1994    1995    1996    1997    1998

- -10.8%  36.4%   13.6%   24.5%   0.6%   22.4%   19.1%   28.2%   -8.7%


     During the 9-year period shown in the bar chart,  the highest  return for a
quarter was 27%  (quarter  ending  March 31,  1991) and the lowest  return for a
quarter was -21.06% (quarter ending September 30, 1998).



   Average Annual Total Returns        Past       Past        Life
 (for the periods ending December    One Year    5 Years    of Fund
            31, 1998)


        Maxus Equity Fund             -8.74%     11.41%      12.56%


   Value Line Arithmetic Index*       5.82%      15.27%      12.88%



* The Value Line Arithmetic Index is an equal-weighted index of the 1,636 stocks
  followed by Value Line Publishing, Inc.
<PAGE>      
                   MAXUS LAUREATE FUND
                         RISK/RETURN SUMMARY

Investment Objective and Main Investment Strategy

     The investment  objective at Maxus Laureate Fund is to achieve a high total
return,  a  combination  of capital  appreciation  and income,  consistent  with
reasonable risk. The Fund pursues this objective by investing primarily in other
mutual  funds  which  invest  on a global  basis.  The Fund will  structure  its
portfolio of mutual funds by (1) identifying  certain global  investment  themes
(for example,  global  telecommunication or emerging markets) which are expected
to  provide  a  favorable  return  over the next six to twelve  months  and (ii)
selecting one or more mutual funds with  management  styles (for example,  value
vs.  growth or large  cap vs.  small  cap) or  investment  concentrations  which
represent  each theme.  As market  conditions  change,  the Fund will exit those
investment  themes  which  appear to have run their course and replace them with
more attractive opportunities.  The Fund also will look for opportunities caused
by market-moving  events (such as political  events,  currency  devaluations and
natural  disasters) that cause a disequilibrium  between  securities  prices and
their underlying intrinsic values.

     The Fund may also seek to achieve  its  objective  by  investing  in mutual
funds whose investment objectives are to provide investment results which either
(i) generally  correspond to the  performance of a recognized  stock price index
("index  funds"),  (ii)  generally  correspond  to a specified  multiple of (for
example,   two  times)  the  performance  of  a  recognized  stock  price  index
("leveraged index funds"),  (iii) generally correspond to the inverse (opposite)
of the  performance  of a recognized  stock price index  ("bear  funds") or (iv)
generally  correspond to a specified  multiple of the inverse  (opposite) of the
performance of a recognized stock price index ("leveraged bear funds").

     The Fund may invest in index funds  and/or  leveraged  index funds when the
Adviser  believes  that equity  prices in general are likely to rise in the near
term. Investments in index funds and leveraged index funds are designed to allow
the Fund to seek to profit from  anticipated  increases  in the indexes to which
such funds  generally are  correlated.  The Fund may invest in bear funds and/or
leveraged bear funds when the Adviser believes that equity prices in general are
likely to decline in the near term. Investments in bear funds and leveraged bear
funds  are  designed  to  allow  the  Fund to seek to  profit  from  anticipated
decreases in the indexes to which such funds generally are inversely correlated.

     When the  Adviser  believes  that  market  conditions  warrant a  temporary
defensive posture,  the Fund may invest up to 100% of its assets in high-quality
short-term  debt securities and money market  instruments.  The taking of such a
temporary  defensive  posture  may  adversely  affect the ability of the Fund to
achieve its investment objective.

     Because the Fund reallocates fund investments across  potentially  numerous
asset  subclasses as evolving  economic and financial  conditions  warrant,  the
portfolio turnover rate of the Fund is much higher than that of most other funds
with similar  objectives.  Although the Fund invests  exclusively  in underlying
funds that do not charge  front-end or deferred sales loads, a sub-custodian  of
the Fund does  impose a small  transaction  charge for each  purchase or sale of
underlying fund shares. The higher the portfolio turnover rate, the greater will
be the custodial  transaction  charges  borne by the Fund.  Also, a high rate of
portfolio  turnover  will  result in high  amounts of realized  investment  gain
subject to the payment of taxes by  shareholders.  Any realized  net  short-term
investment  gain  will  be  taxed  to  shareholders  as  ordinary  income.   See
"Dividends, Distributions and Taxes" below.
<PAGE>
Main Risks

     Volatility. The value of securities in Maxus Laureate Fund's portfolio will
go up and down.  The  Fund's  portfolio  will  reflect  changes in the prices of
individual  portfolio  securities or general  changes in securities  valuations.
Consequently, the Fund's share price may decline and you could lose money.

     Foreign  Exposure.  Many of the underlying funds in which this Fund invests
have substantial  investments in foreign markets.  Foreign  securities,  foreign
currencies,  and securities  issued by U.S.  entities with  substantial  foreign
operations  can involve  additional  risks  relating to  political,  economic or
regulatory conditions in foreign countries.  These risks include fluctuations in
foreign currencies;  withholding or other taxes; trading, settlement,  custodial
and other  operational  risks;  and the less stringent  investor  protection and
disclosure  standards of some  foreign  markets.  All of these  factors can make
foreign  investments,  especially those in emerging  markets,  more volatile and
potentially less liquid than U.S. investments.  In addition, foreign markets can
perform  differently than the U.S. market.  If these factors cause the net asset
values of the underlying funds to decline, the Funds share price will decline.

     Index and  Leveraged  Index Funds.  The Fund may invest in "index funds" or
"leveraged  index funds." If equity prices  generally  decline while the Fund is
invested  in an index  fund or  funds,  the Fund  could  experience  substantial
losses.  Such losses  would be magnified to the extent the Fund is invested in a
leveraged index fund or funds.

     Bear and Leveraged Bear Funds.  The Fund may also invest in "bear funds" or
"leveraged  bear  funds."  If equity  prices  generally  rise  while the Fund is
invested in a bear fund or funds, the Fund could experience  substantial losses.
Such losses would be magnified to the extent the Fund is invested in a leveraged
bear fund or funds.

     Duplication  of  Expenses.  An  investor in the Fund will bear not only his
proportionate  share of the  expenses  of the Fund but also  indirectly  similar
expenses  of the  underlying  mutual  funds in which  the  Fund  invests.  These
expenses  consist of advisory  fees,  expenses  related to the  distribution  of
shares,  brokerage  commissions,   accounting,  pricing  and  custody  expenses,
printing, legal and audit expenses and other miscellaneous expenses.

     Industry  Concentration.  Through its investment in underlying  funds,  the
Fund  indirectly  may invest more than 25% of its assets in one  industry.  Such
indirect  concentration  of the Fund's assets may subject the shares of the Fund
to greater  fluctuation  in value than would be the case in the  absence of such
concentration.
<PAGE>
Bar Chart and Performance Table

     The bar chart and table shown below  provide an  indication of the risks of
investing in Maxus  Laureate Fund by showing  changes in the Fund's  performance
from  year to year  over  the life of the Fund  and by  showing  how the  Fund's
average  annual  returns for one and five year  periods and the life of the Fund
compare to those of a  broad-based  securities  market  index.  How the Fund has
performed  in the past is not  necessarily  an  indication  of how the Fund will
perform in the future.

                         Maxus Laureate Fund
                           Investor Shares






                             [Bar Chart]







               1994      1995      1996      1997      1998

               -3.4%     14.4%     21.0%     5.5%      35.1%


     During the 5-year period shown in the bar chart,  the highest  return for a
quarter was 21.10%  (quarter ending December 31, 1998) and the lowest return for
a quarter was -11.99% (quarter ending September 30, 1998).



   Average Annual Total Returns        Past       Past        Life
 (for the periods ending December    One Year    5 Years    of Fund
            31, 1998)


       Maxus Laureate Fund            35.14%     13.78%      13.71%


      Morgan Stanley Capital          24.34%     15.68%      15.25%
    International World Index*
<PAGE>


* The Morgan Stanley Capital  International World Index is a total return market
  capitalization weighted index of the equity markets of 23 developed countries.
<PAGE>      
                MAXUS OHIO HEARTLAND FUND
                         RISK/RETURN SUMMARY

Investment Objective and Main Investment Strategies

  The  investment  objective  of Maxus Ohio  Heartland  Fund is to obtain a high
total  return (a  combination  of income  and  capital  appreciation).  The Fund
pursues this objective  primarily by investing in equity securities of companies
headquartered  in the State of Ohio.  Under normal  circumstances  the Fund will
invest at least 65% of its total assets in such  securities.  Equity  securities
consist  of common  stock and  securities  convertible  into  common  stock.  In
selecting such companies,  the Fund emphasizes a "value" style of investing.  In
deciding  which  securities  to buy and  which to sell,  the  Adviser  will give
primary  consideration to fundamental  factors.  For example,  securities having
relatively  low ratios of share price to book value,  net asset value,  earnings
and cash flow will generally be considered attractive investments.

  While   investments   may  be  made  in  all  types  and  sizes  of  companies
headquartered  in Ohio,  the  primary  focus of this  Fund  will be to invest in
companies  having  annual  revenues or a market  capitalization  of less than $5
billion,  many of which may be traded in the over-the-counter  market.  However,
the Fund will generally not invest in companies having annual revenues less than
$25,000,000.

  When the Adviser believes that market conditions warrant a temporary defensive
posture, the Fund may invest up to 100% of its assets in high-quality short-term
debt  securities  and money market  instruments.  The taking of such a temporary
defensive  posture may  adversely  affect the ability of the Fund to achieve its
investment objective.

Main Risks

  Volatility.  The value of securities in Maxus Ohio Heartland  Fund's portfolio
will go up and down. The Fund's  portfolio will reflect changes in the prices of
individual  portfolio  securities or general  changes in securities  valuations.
Consequently, the Fund's share price may decline and you could lose money.

  Geographic Concentration.  Since this Fund concentrates its investments in the
State of Ohio, its assets may be at greater risk because of economic,  political
or regulatory risk which may become  associated with the State. For example,  if
adverse tax laws uniquely  affecting  Ohio-based  companies were passed,  such a
development  could have an  adverse  effect  upon this  Fund.  This Fund also is
subject to the  additional  risk that at certain times only a limited  number of
securities meeting the Fund's investment criteria may be available.

  Smaller Companies.  The prices of equity securities fluctuate based on changes
in a company's  activities  and financial  condition  and in overall  market and
financial  conditions.  While Maxus Ohio  Heartland Fund invests in both smaller
and larger  companies,  the  smaller  companies  in which the Fund  invests  are
especially  sensitive to these  factors and  therefore may be subject to greater
share price fluctuations than other companies. Also, securities of these smaller
companies are often less liquid,  thus possibly limiting the ability of the Fund
to dispose of such securities when the Adviser deems it desirable to do so. As a
result of these  factors,  securities  of these  smaller  companies  may  expose
shareholders of the Fund to above average risk. Bar Chart and Performance Table
<PAGE>
  A bar chart and  performance  table is not provided  for Maxus Ohio  Heartland
Fund since this Fund has not had annual total returns for a full calendar year.

                     MAXUS AGGRESSIVE VALUE FUND
                         RISK/RETURN SUMMARY

Investment Objective and Main Investment Strategies

  The investment  objectives of Maxus Aggressive Value Fund is to obtain capital
appreciation.  The Fund pursues this objective by investing  primarily in equity
securities  of companies  whose equity  securities  have a total market value of
between $10,000,000 and $200,000,000.  Equity securities consist of common stock
and  securities  convertible  into common stock.  The Fund  emphasizes a "value"
style of investing.  In deciding which  securities to buy and which to sell, the
Adviser will give primary  consideration  to fundamental  factors.  For example,
securities  having relatively low ratios of share price to book value, net asset
value,   earnings  and  cash  flow  will  generally  be  considered   attractive
investments.  Additionally,  the Adviser will give  secondary  consideration  to
insider transactions and the growth of earnings.

  As a  result  of its  focus  on  smaller  companies  and  its  intent  to take
short-term  positions in certain equity securities,  this Fund may be considered
to be more  "aggressive"  than  other  mutual  funds  having a "value"  style of
investing.

  When the Adviser believes that market conditions warrant a temporary defensive
posture, the Fund may invest up to 100% of its assets in high-quality short-term
debt  securities  and money market  instruments.  The taking of such a temporary
defensive  posture may  adversely  affect the ability of the Fund to achieve its
investment objective.

Main Risks

  Volatility. The value of securities in Maxus Aggressive Value Fund's portfolio
will go up and down. The Fund's  portfolio will reflect changes in the prices of
individual  portfolio  securities or general  changes in securities  valuations.
Consequently, the Fund's share price may decline and you could lose money.

  Smaller Companies.  The prices of equity securities fluctuate based on changes
in a company's  activities  and financial  condition  and in overall  market and
financial  conditions.  The  smaller  companies  in which the Fund  invests  are
especially  sensitive to these  factors and  therefore may be subject to greater
share price fluctuations than other companies. Also, securities of these smaller
companies are often less liquid,  thus possibly limiting the ability of the Fund
to dispose of such securities when the Adviser deems it desirable to do so. As a
result of these  factors,  securities  of these  smaller  companies  may  expose
shareholders of the Fund to above average risk.
<PAGE>
Bar Chart and Performance Table

  A bar chart and performance  table is not provided for Maxus  Aggressive Value
since this Fund has not had annual total returns for a full calendar year.
<PAGE>      
              FEES AND EXPENSES OF THE FUNDS

  This table  describes  the fees and  expenses  that you may pay if you buy and
hold shares of a Fund.

Annual Fund Operating Expenses (expenses that are deducted from Fund).


                                                        
           Maxus          Maxus          Maxus       Maxus Ohio       Maxus
           Income         Equity         Laureate    Heartland        Agressivse
           Fund           Fund           Fund*       Value Fund       Fund
               
        In-    In-     In-    In-     In-    In-    In-     In-    In-    In-
        vestor stitu-  vestor stitu-  vestor stitu- vestor  stitu- vestor stitu-
        Class  tional  Class  tional  Class  tional Class   tional Class  tional
               Class          Class          Class          Class         Class


Manage- 
ment   
Fees    1.00%   1.00%  1.00%  1.00%   1.00%  1.00%  1.00%   1.00%  1.00%  1.00%

Distri-
bution
and/or  
Service 
(12b-1)
Fees    0.50%   0.00%   0.50%  0.00%   0.50%  0.00%  0.50%   0.00%  0.50%  0.00%

Other   
Ex-
penses  0.37%   0.37%   0.30   0.30%   1.13%  1.13%  1.74%   1.74%  1.19%  1.19%


Total
Annual  
Fund    
Opera-
ting
Ex-
penses  1.87%   1.37%   1.80%   1.30%   2.63%  2.13%  3.24%   2.74%  2.69% 2.19%


*Expenses shown do not include  expenses of the underlying  funds in which Maxus
Laureate Fund invests.

A  shareholder  who requests  that the proceeds of a redemption  be sent by wire
transfer  will be charged  for the cost of such wire,  which is $10.00 as of the
date of this Prospectus (subject to change without notice).

Examples:  These Examples are intended to help you compare the cost of investing
in the Fund with the cost of investing in other mutual funds.

The  Examples  assume that you invest  $10,000 in the Fund for the time  periods
indicated  and then redeem all of your shares at the end of those  periods.  The
Examples also assume that your investment has a 5% return each year and that the
Fund's  operating  expenses  remain the same.  Although your actual costs may be
higher or lower, based on these assumptions your costs would be:

                           1 year   3 years  5 years   10 years
Investor Shares
Maxus Income Fund             $190     $588     $1011      $2190
Maxus Equity Fund             $183     $566    $  975      $2116
Maxus Laureate Fund           $266     $817     $1395      $2964
Maxus Ohio Heartland Fund     $327     $998     $1693      $3540
Maxus Aggressive Value        $272     $835     $1425      $3022
Fund
Institutional Shares
Maxus Income Fund             $139     $434    $  750      $1646
Maxus Equity Fund             $132     $412    $  713      $1568
Maxus Laureate Fund           $216     $667     $1144      $2462
Maxus Ohio Heartland Fund     $277     $850     $1450      $3070
Maxus Aggressive Value        $222     $685     $1175      $2524
Fund
<PAGE>      
                  HOW TO PURCHASE SHARES

     By this Prospectus, each Fund is offering Investor Shares and Institutional
Shares.  Investor Shares and  Institutional  Shares are identical,  except as to
minimum  investment  requirements and the services offered to and expenses borne
by each class.

Investor Shares

     Investor Shares may be purchased by any investor  without a sales charge. A
minimum  initial  investment  of $1,000 is required  to open an Investor  Shares
account with subsequent minimum investments of $100.  Investment minimums may be
waived at the discretion of each Fund.

Institutional Shares

     Institutional  Shares  may be  purchased  without  a  sales  charge  by (1)
financial  institutions,  such as banks, trust companies,  thrift  institutions,
mutual funds or other financial  institutions,  acting on their own behalf or on
behalf of their qualified  fiduciary  accounts,  employee  benefit or retirement
plan accounts or other  qualified  accounts,  (2) securities  brokers or dealers
acting on their own  behalf or on behalf  of their  clients,  (3)  directors  or
employees of the Funds or of the Adviser or its  affiliated  companies or by the
relatives of those  individuals  or the trustees of benefit plans covering those
individuals.  These requirements for the purchase of Institutional Shares may be
waived in the sole discretion of the Funds.

     A  minimum  initial  investment  of  $1,000,000  is  required  to  open  an
Institutional  Shares account with  subsequent  minimum  investments of $10,000.
Investment minimums may be waived at the discretion of each Fund.

Shareholders Accounts

     When a  shareholder  invests  in a Fund,  Mutual  Shareholder  Services,  a
division of Maxus Information Systems Inc. ("Mutual Shareholder Services"),  the
Transfer  Agent for each Fund,  will establish an open account to which all full
and fractional shares (to three decimal places) will be credited,  together with
any  dividends  and capital  gains  distributions,  which are paid in additional
shares unless the  shareholder  otherwise  instructs the Transfer  Agent.  Stock
certificates will be issued for full shares only when requested in writing. Each
shareholder is notified of the status of his account  following each purchase or
sale transaction.

Initial Purchase

     The  initial  purchase  may be made by  check  or by wire in the  following
manner:

By Check. The Account  Application  which  accompanies this Prospectus should be
completed, signed, and, along with a check for the initial investment payable to
Maxus Income Fund,  Maxus Equity Fund, Maxus Laureate Fund, Maxus Ohio Heartland
Fund or Maxus Aggressive Value Fund, mailed to: Mutual Shareholder Services, The
Tower at Erieview, 36th Floor, 1301 East Ninth Street, Cleveland, Ohio 44114.
<PAGE>
By Wire.  In order to expedite the  investment  of funds,  investors  may advise
their bank or broker to transmit funds via Federal  Reserve Wire System to: Star
Bank, N.A. Cinti/Trust, ABA #0420-0001-3, F/F/C Account No. 19-6201 Maxus Mutual
Funds DDA 483617213 (Star Bank Trust).  Also provide the shareholder's  name and
account  number.  In order to obtain  this  needed  account  number and  receive
additional instructions, the investor may contact, prior to wiring funds, Mutual
Shareholder  Services,  at (216) 687-1000.  The investor's bank may charge a fee
for the wire transfer of funds.

Subsequent Purchases

     Investors may make additional purchases in the following manner:

By Check.  Checks made payable to Maxus Income  Fund,  Maxus Equity Fund,  Maxus
Laureate Fund,  Maxus Ohio Heartland Fund or Maxus  Aggressive Value Fund should
be sent, along with the stub from a previous purchase or sale  confirmation,  to
Mutual Shareholder Services, The Tower at Erieview,  36th Floor, 1301 East Ninth
Street, Cleveland, OH 44114.

By  Wire.   Funds  may  be  wired  by following the  previously  discussed  wire
instructions for an initial purchase.

By Telephone. Investors may purchase shares up to an amount equal to 3 times the
market  value  of  shares  held in the  shareholder's  account  in a Fund on the
preceding  day for  which  payment  has been  received,  by  telephoning  Mutual
Shareholder Services, at (216) 687-1000 and identifying their account by number.
Shareholders  wishing to avail  themselves  of this  privilege  must  complete a
Telephone  Purchase  Authorization  Form  which is  available  from the Fund.  A
confirmation  will be mailed and payment must be received within 3 business days
of date of purchase.  If payment is not received within 3 business days the Fund
reserves  the right to redeem the shares  purchased  by  telephone,  and if such
redemption  results in a loss to the Fund, redeem  sufficient  additional shares
from the shareholder's  account to reimburse the Fund for the loss.  Payment may
be made by check or by wire.  The Adviser  has agreed to hold the Fund  harmless
from  net  losses  resulting  from  this  service  to the  extent,  if any,  not
reimbursed from the shareholder's account. This telephone purchase option may be
discontinued without notice.

Systematic Investment Plan

     The Systematic  Investment Plan permits investors to purchase shares of any
Fund at monthly  intervals.  Provided  the  investor's  bank or other  financial
institution   allows   automatic   withdrawals,   shares  may  be  purchased  by
transferring  funds  from  the  account  designated  by  the  investor.  At  the
investor's  option,  the  account  designated  will be debited in the  specified
amount,  and shares will be  purchased  once a month,  on or about the 15th day.
Only an account  maintained  at a  domestic  financial  institution  which is an
Automated  Clearing  House member may be so  designated.  Investors  desiring to
participate in the  Systematic  Investment  Plan should call Mutual  Shareholder
Services  at (216)  687-1000 to obtain the  appropriate  forms.  The  Systematic
Investment  Plan does not assure a profit and does not protect  against  loss in
declining markets.
<PAGE>
Price of Shares

     The price  paid for  shares  of a certain  class of a Fund is the net asset
value per share of such class of such Fund next determined  after receipt by the
Transfer  Agent of your  investment  in proper  form,  except that the price for
shares  purchased by telephone is the net asset value per share next  determined
after receipt of telephone  instructions.  Net asset value per share is computed
for each class of each Fund as of the close of  business  (currently  4:00 P.M.,
New York time) each day the New York Stock  Exchange  is open for trading and on
each  other day during  which  there is a  sufficient  degree of trading in such
Fund's  investments  to  affect  materially  net asset  value of its  redeemable
securities.

     The assets of the Funds (except Maxus Laureate  Fund) are valued  primarily
on the basis of market quotations.  The assets of Maxus Laureate Fund are valued
primarily on the basis of the reported net asset values of the underlying mutual
funds in which this Fund invests.

Other Information Concerning Purchase of Shares

     Each Fund  reserves the right to reject any order,  to cancel any order due
to non-payment and to waive or lower the investment minimums with respect to any
person or class of persons.  If an order is canceled  because of  non-payment or
because your check does not clear, you will be responsible for any loss that the
Fund incurs.  If you are already a shareholder,  the Fund can redeem shares from
your account to  reimburse it for any loss.  The Adviser has agreed to hold each
Fund harmless from net losses to that Fund resulting from the failure of a check
to clear to the extent,  if any, not recovered from the investor.  For purchases
of $50,000 or more, each Fund may, in its discretion, require payment by wire or
cashier's or certified check.


                         HOW TO REDEEM SHARES

     All  shares  of each  class of each Fund  offered  for  redemption  will be
redeemed  at the net  asset  value  per  share of such  class of that  Fund next
determined  after receipt of the redemption  request,  if in good order,  by the
Transfer  Agent.  See "Price of  Shares."  Because  the net asset  value of each
Fund's  shares  will  fluctuate  as a result of changes  in the market  value of
securities owned, the amount a stockholder  receives upon redemption may be more
or less than the amount paid for the shares.  Redemption proceeds will be mailed
to the shareholder's  registered address of record or, if $5,000 or more, may be
transmitted by wire, upon request, to the shareholder's  pre-designated  account
at a domestic bank. The  shareholder  will be charged for the cost of such wire.
If shares  have been  purchased  by check  and are  being  redeemed,  redemption
proceeds will be paid only after the check used to make the purchase has cleared
(usually  within 15 days after payment by check).  This delay can be avoided if,
at the time of  purchase,  the  shareholder  provides  payment by  certified  or
cashier's check or by wire transfer.
<PAGE>
Redemption by Mail

     Shares may be redeemed by mail by writing  directly to the Funds'  Transfer
Agent, Mutual Shareholder Services, The Tower at Erieview, 36th Floor, 1301 East
Ninth  Street,  Cleveland,  Ohio 44114.  The  redemption  request must be signed
exactly as the  shareholder's  name appears on the  registration  form, with the
signature  guaranteed,  and must include the account number. If shares are owned
by more than one person,  the  redemption  request  must be signed by all owners
exactly as the names appear on the registration.
     If  a  shareholder  is  in  possession  of  the  stock  certificate,  these
certificates  must  accompany  the  redemption  request  and must be endorsed as
registered with a signature guarantee.  Additional documents may be required for
registered  certificates  owned  by  corporations,   executors,  administrators,
trustees or guardians.  A request for redemption will not be processed until all
of the  necessary  documents  have been  received in proper form by the Transfer
Agent. A shareholder  in doubt as to what documents are required  should contact
Mutual Shareholder Services at (216) 687-1000.

     You  should  be  able  to  obtain  a  signature   guarantee  from  a  bank,
broker-dealer, credit union (if authorized under state law), securities exchange
or association,  clearing agency or savings association.  A notary public is not
an  acceptable  guarantor.  A Fund may in its  discretion  waive  the  signature
guarantee in certain instances.

Redemption by Telephone

     Shares may be redeemed by telephone by calling Mutual Shareholder  Services
at (216)  687-1000  between 9:00 A.M. and 4:00 P.M.  eastern time on any day the
New York Stock Exchange is open for trading.  An election to redeem by telephone
must be made on the initial application form or on other forms prescribed by the
Fund which may be  obtained by calling  the Funds at (216)  687-1000.  This form
contains a space for the shareholder to supply his own four digit identification
number  which  must be given upon  request  for  redemption.  A Fund will not be
liable  for  following  instructions  communicated  by  telephone  that the Fund
reasonably  believes  to be  genuine.  If a  Fund  fails  to  employ  reasonable
procedures to confirm that  instructions  communicated by telephone are genuine,
the  Fund  may be  liable  for any  losses  due to  unauthorized  or  fraudulent
instructions. Any changes or exceptions to the original election must be made in
writing with  signature  guaranteed,  and will be effective  upon receipt by the
Transfer Agent. The Transfer Agent and each Fund reserve the right to refuse any
telephone instructions and may discontinue the aforementioned  redemption option
without notice. The minimum telephone redemption is $1,000.

Other Information Concerning Redemption

     A  shareholder  who requests  that the proceeds of a redemption  be sent by
wire transfer  will be charged for the cost of such wire,  which is $10.00 as of
the date of this Prospectus (subject to change without notice).

     Each Fund  reserves  the right to take up to seven days to make payment if,
in the judgment of the Fund's  Investment  Adviser,  such Fund could be affected
adversely by immediate payment. In addition,  the right of redemption for a Fund
may be  suspended  or the date of payment  postponed  (a) for any period  during
which  the  NYSE is  closed  (other  than for  customary  week-end  and  holiday
closings),  (b) when trading in the markets that the Fund  normally  utilizes is
restricted, or when an emergency, as defined by the rules and regulations of the
SEC, exists,  making disposal of that Fund's investments or determination of its
net asset value not reasonably practicable,  or (c) for any other periods as the
SEC by order may permit for protection of that Fund's shareholders.
<PAGE>
     Due to the high cost of  maintaining  accounts,  each Fund has the right to
redeem,  upon not less than 30 days  written  notice,  all of the  shares of any
shareholder if, through redemptions,  the shareholder's  account has a net asset
value of less than $1,000 in the case of Investor  Shares or  $1,000,000  in the
case of  Institutional  Shares.  A  shareholder  will be  given at least 30 days
written notice prior to any  involuntary  redemption and during such period will
be  allowed  to  purchase  additional  shares  to bring  his  account  up to the
applicable minimum before the redemption is processed.



                      SYSTEMATIC WITHDRAWAL PLAN

     Shareholders  who own shares of a Fund  valued at $15,000 or more may elect
to receive a monthly or quarterly check in a stated amount (minimum check amount
is $100 per month or quarter). Shares will be redeemed at net asset value as may
be necessary to meet the  withdrawal  payments.  If withdrawal  payments  exceed
reinvested  dividends and  distributions,  the investor's shares will be reduced
and eventually  depleted. A withdrawal plan may be terminated at any time by the
shareholder or the applicable  Fund. Costs associated with a withdrawal plan are
borne  by the  applicable  Fund.  Additional  information  regarding  systematic
withdrawal plans may be obtained by calling Mutual Shareholder Services at (216)
687-1000.


                        INVESTMENT MANAGEMENT

The Investment Adviser

     Each Fund has retained as its investment adviser Maxus Asset Management Inc
(the  "Adviser"),  The Tower at Erieview,  36th Floor,  1301 East Ninth  Street,
Cleveland,  Ohio 44114, an investment  management  organization founded in 1976.
The Adviser is actively engaged in providing discretionary investment management
services to institutional and individual clients.

     Subject to the  supervision  of each Fund's Board of Trustees,  the Adviser
manages each Fund's assets,  including buying and selling portfolio  securities.
The Adviser also furnishes office space and certain  administrative  services to
the Fund.

     During 1998, the Adviser  received from each Fund as  compensation  for its
services an annual fee of 1% of such Fund's net assets.

Portfolio Managers

     Richard A.  Barone has been the  portfolio  manager of Maxus  Income  Fund,
Maxus Equity Fund and Maxus  Aggressive  Value Fund since the  inception of each
Fund. Mr. Barone has been President of the Adviser since 1976.
<PAGE>
     Alan  Miller  has been the portfolio manager of Maxus Laureate  Fund  since
January 1, 1995.  Mr. Miller has been a portfolio manager with the Adviser since
1994.

     Denis J. Amato has been the portfolio  manager of the Maxus Ohio  Heartland
Fund since its inception. Mr. Amato has been Chief Investment Officer of Gelfand
Maxus Asset Management Inc., a subsidiary of RMI, since 1997. Previously, he was
Managing Director of Gelfand Partners Asset Management since 1991.

Rule 12b-1 Plan (Investor Shares Only)

     Each Fund has adopted a Rule 12b-1 Plan,  which allows it to pay  marketing
and servicing fees to the  Distributor for the sale,  distribution  and customer
servicing of each Fund's  Investor  Shares.  Such fees are payable at the annual
rate of .50% of the  average  daily net  assets of the  Investor  Shares of each
Fund.  Because  Investor  Shares pay marketing and servicing  fees on an ongoing
basis,  your  investment  cost may be higher  over time than other  shares  with
different sales charges and fees.


                  DIVIDENDS, DISTRIBUTIONS AND TAXES

     Each  Fund  declares  and  pays any  dividends  annually  to  shareholders.
Dividends are paid to all shareholders  invested in the Fund on the record date.
The record date is the date on which a shareholder must officially own shares in
order to earn a dividend.

     In  addition,  the Fund  pays any  capital  gains at least  annually.  Your
dividends and capital gains  distributions  will be automatically  reinvested in
additional Shares without a sales charge, unless you elect cash payments.

     If you  purchase  Shares just before a Fund  declares a dividend or capital
gain distribution, you will pay the full price for the Shares and then receive a
portion  of the price  back in the form of a  distribution,  whether  or not you
reinvest the  distribution  in Shares.  Therefore,  you should  consider the tax
implications of purchasing Shares shortly before the Fund declares a dividend or
capital gain.  Contact your investment  professional or the Fund for information
concerning when dividends and capital gains will be paid.

     Each Fund sends an annual  statement of your account activity to assist you
in completing your federal,  state and local tax returns.  Fund distributions of
dividends  and  capital  gains  are  taxable  to you  whether  paid  in  cash or
reinvested in the Fund. Dividends are taxable as ordinary income;  capital gains
are taxable at different  rates depending upon the length of time the Fund holds
its assets.

     Fund  distributions  may be both  dividends and capital  gains.  Generally,
distributions  from Maxus  Income  Fund are  expected to be  primarily  ordinary
income dividends,  while  distributions  from the other Funds are expected to be
primarily  capital gains  distributions.  Redemptions  and exchanges are taxable
sales. Please consult your tax adviser regarding your federal,  state, and local
tax liability.
<PAGE>

                        THE YEAR 2000 PROBLEM

     Many  computer  systems  were  designed  using only two digits to designate
years.  These systems may not be able to distinguish the Year 2000 from the Year
1900 (commonly known as the "Year 2000  Problem").  The Funds could be adversely
affected  if the  computer  systems  used by the  Adviser or other Fund  service
providers do not  properly  address this  problem  before  January 1, 2000.  The
Adviser  expects  to have  addressed  this  problem  before  then,  and does not
anticipate that the services it provides will be adversely affected.  The Fund's
other service  providers  have told the Adviser that they also expect to resolve
the Year 2000 Problem, and the Adviser will continue to monitor the situation as
the Year 2000 approaches.  However, if the problem has not been fully addressed,
the Funds could be negatively affected.  The Year 2000 Problem could also have a
negative impact on the companies in which the Funds invest,  and this could hurt
the Funds' investment returns.


                         GENERAL INFORMATION

     Maxus Laureate Fund is not available to residents of the State of Montana.

     Shares of each Fund are  offered  exclusively  by the  Fund's  Distributor,
Maxus Securities Corp. an affiliate of the Adviser. The Distributor's address is
The Tower at  Erieview,  36th Floor,  1301 East Ninth  Street,  Cleveland,  Ohio
44114.

     Star  Bank,  N.A.,  425  Walnut  Street,  Cincinnati,  Ohio  45201,  is the
custodian for each Fund's securities and cash. Mutual  Shareholder  Services,  a
division of Maxus Information Systems Inc. ("MIS"), The Tower at Erieview,  36th
Floor, 1301 East Ninth Street,  Cleveland,  Ohio 44114, is each Fund's Transfer,
Redemption  and Dividend  Distributing  Agent.  MIS is a subsidiary  of RMI, the
parent company of the Adviser.

     McCurdy & Associates  C.P.A.'s,  Inc., 27955 Clemens Road,  Westlake,  Ohio
44145, have been appointed as independent accountants for the Funds.

     Benesch,  Friedlander,  Coplan & Aronoff, 2300 BP Tower, 200 Public Square,
Cleveland, Ohio 44114, is legal counsel to the Funds and to the Adviser.
<PAGE>

                          MAXUS INCOME FUND
                         FINANCIAL HIGHLIGHTS

     The  financial  highlights  table is  intended to help you  understand  the
Fund's financial  performance for the past 5 years. Certain information reflects
financial  results  for a single  Fund  share.  The total  returns  in the table
represent the rate that an investor would have earned (or lost) on an investment
in the Fund (assuming  reinvestment  of all dividends and  distributions).  This
information  has been  audited by McCurdy &  Associates  C.P.A.'s,  Inc.,  whose
report,  along with the Fund's  financial  statements,  are included in the SAI,
which is available upon request.
   
                         01/01/98  01/01/97 01/01/96   01/01/95  01/01/94
                            to        to       to         to        to
                         12/31/98  12/31/97 12/31/96   12/31/95  12/31/94

Net Asset Value:
  Beginning of Period    $ 11.31   $ 10.78  $ 10.54    $ 9.73    $ 10.94
Net Investment Income       0.72     .67       0.70      0.72       0.74
Net Gains or Losses on 
  Securities (realized    
  or unrealized)           (0.33)    .53       0.24      0.81      (1.22
Total From Investment 
  Operations                0.39     1.20      0.94      1.53      (0.48)
Dividends  (from  net 
  investment income)       (0.72)   (0.67)    (0.70)    (0.72)     (0.73)
Distributions (from capital
  gains                    (0.37)    0.00      0.00      0.00       0.00
Return of Capital           0.00     0.00      0.00      0.00       0.00
Total Distributions        (1.09)   (0.67)    (0.70)    (0.72)     (0.73)
Net Asset Value:
  End of Period          $ 10.61  $ 11.31   $ 10.78   $ 10.54     $ 9.73 
Total Return                3.49%   11.47%     9.20%    16.15%     (4.39)%   
Ratios/Supplemental  Data  
Net  Assets End of Period
(Thousands)                39,650   38,620    35,728    37,387     33,425  
Ratio of  Expenses to 
  Average Net Assets        1.87%    1.91%     1.92%     1.90%      1.81% 
Ratio of Net Income to 
  Average Net Assets        6.52%    6.08%     6.50%     7.01%      7.10% 
Portfolio Turnover Rate       55%      70%       78%      121%       138%

Notes  to  Financial  Statements appear in the Fund's  Statement  of  Additional
Information.
    
<PAGE>

   
                                MAXUS EQUITY FUND
                              FINANCIAL HIGHLIGHTS

     The  financial  highlights  table is  intended to help you  understand  the
Fund's financial  performance for the past 5 years. Certain information reflects
financial  results  for a single  Fund  share.  The total  returns  in the table
represent the rate that an investor would have earned (or lost) on an investment
in the Fund (assuming  reinvestment  of all dividends and  distributions).  This
information  has been  audited by McCurdy &  Associates  C.P.A.'s,  Inc.,  whose
report,  along with the Fund's  financial  statements,  are included in the SAI,
which is available upon request.

                         01/01/98  01/01/97  01/01/96   01/01/95  01/01/94
                            to        to        to         to        to
                         12/31/98  12/31/97  12/31/96   12/31/95  12/31/94

Net Asset Value:
  Beginning of Period    $ 18.23   $ 16.00   $ 14.57   $ 12.95    $ 13.60
Net Investment Income       0.20      0.15      0.27      0.30       0.25
Net Gains or Losses on 
  Securities (realized or 
  unrealized)              (1.80)     4.33      2.50      2.60      (0.17)
  Total From Investment 
  Operations               (1.60)     4.48      2.77      2.90       0.08
Dividends  (from  net 
  investment income)       (0.20)    (0.15)    (0.27)    (0.27)     (0.22)
Distributions (from 
  capital gains)           (0.51)    (2.10)    (1.07)    (1.01)     (0.51)
Return of Capital           0.00      0.00      0.00      0.00       0.00
  Total Distributions      (0.71)    (2.25)    (1.34)    (1.28)     (0.73)
Net Asset Value:
  End of Period          $ 15.92   $ 18.23   $ 16.00   $ 14.57    $ 12.95
Total Return               -8.74%    28.16%    19.13%    22.43%      0.62%
Ratios/Supplemental Data
Net Assets
  End  of  Period 
  (Thousands)              53,279    55,637    38,765    31,576     17,018
Ratio  of  Expenses  
  to Average Net Assets     1.80%     1.87%     1.90%     1.96%      2.00%
Ratio  of  Net  Income to
  Average Net Assets        1.15%     1.80%     1.71%     2.01%      1.82%
Portfolio Turnover Rate      111%       89%      111%      173%       184%

Notes  to  Financial  Statements appear in the Fund's  Statement  of  Additional
Information.
    
<PAGE>
   
                         MAXUS LAUREATE FUND
                         FINANCIAL HIGHLIGHTS

     The  financial  highlights  table is  intended to help you  understand  the
Fund's financial  performance for the past 5 years. Certain information reflects
financial  results  for a single  Fund  share.  The total  returns  in the table
represent the rate that an investor would have earned (or lost) on an investment
in the Fund (assuming  reinvestment  of all dividends and  distributions).  This
information  has been  audited by McCurdy &  Associates  C.P.A.'s,  Inc.,  whose
report,  along with the Fund's  financial  statements,  are included in the SAI,
which is available upon request.

                         01/01/98  01/01/97  01/01/96  01/01/95  01/01/94
                            to        to        to        to        to
                         12/31/98  12/31/97  12/31/96  12/31/95  12/31/94

Net Asset Value:
Beginning of Period       $10.38    $10.82    $ 9.82    $ 9.62    $ 9.96
Net Investment Income      (0.12)      .52     (0.08)    (0.19)    (0.08)
Net Gains or Losses on 
  Securities (realized 
  or unrealized)            3.76       .07      2.14      1.57     (0.26)
Total From Investment 
  Operations                3.64      0.59      2.06      1.38     (0.34)
Dividends (from net 
  investment income)        0.00     (0.52)     0.00      0.00      0.00
Distributions (from 
  capital gains)           (0.73)    (0.51)    (1.06)    (1.18)     0.00
Return of Capital           0.00      0.00      0.00      0.00      0.00
Total Distributions        (0.73)    (1.03)    (1.06)    (1.18)     0.00
Net Asset Value:
  End of Period           $13.29    $10.38    $10.82    $ 9.82    $ 9.62
Total Return               35.14%     5.49%    21.03%    14.41%    (3.41)%
Ratios/Supplemental Data
Net Assets End of Period 
  (Thousands)               8,059     3,395     3,156     1,510     1,998
Ratio  of  Expenses  to 
Average Net Assets          2.63%     2.49%     3.92%     3.85%     3.60%
Ratio of Net Income to 
  Average Net Assets       -1.10%     4.19%    (0.73)%   (1.69)%   (0.87)%
Portfolio Turnover Rate     2,078%    1,511%    1,267%    1,377%      469%

Notes  to  Financial  Statements appear in the Fund's  Statement  of  Additional
Information.
    
<PAGE>

                      MAXUS OHIO HEARTLAND FUND
                         FINANCIAL HIGHLIGHTS

     The  financial  highlights  table is  intended to help you  understand  the
Fund's financial  performance for the period of the Fund's  operations.  Certain
information  reflects  financial  results  for a single  Fund  share.  The total
returns in the table  represent the rate that an investor  would have earned (or
lost) on an investment in the Fund (assuming  reinvestment  of all dividends and
distributions).  This  information  has been  audited  by  McCurdy &  Associates
C.P.A.'s,  Inc., whose report, along with the Fund's financial  statements,  are
included in the SAI, which is available upon request.

                                            02/01/98*
                                               to
                                            12/31/98

Net Asset Value:
Beginning of Period                          $10.00
Net Investment Income                         (0.05)
Net Gains or Losses on Securities
  (realized  or  unrealized)                  (1.79)  
Total From  Investment  Operations            (1.84)
Dividends (from net investment income)         0.00  
Distributions  (from capital gains)            0.00 
Return of Capital                              0.00 
Total Distributions                            0.00 
Net Asset Value:
  End of Period                              $ 8.16
Total Return                                 -18.40%
Ratios/Supplemental Data
Net Assets End of Period (Thousands)           1,234
Ratio of Expenses to Average Net Assets        3.24%
Ratio of Net Income to Average Net Assets     -0.88%
Portfolio Turnover Rate                        5.72%

*Commencement of operations.

Notes  to  Financial  Statements appear in the Fund's  Statement  of  Additional
Information.
<PAGE>
                     MAXUS AGGRESSIVE VALUE FUND
                         FINANCIAL HIGHLIGHTS

     The  financial  highlights  table is  intended to help you  understand  the
Fund's financial  performance for the period of the Fund's  operations.  Certain
information  reflects  financial  results  for a single  Fund  share.  The total
returns in the table  represent the rate that an investor  would have earned (or
lost) on an investment in the Fund (assuming  reinvestment  of all dividends and
distributions).  This  information  has been  audited  by  McCurdy &  Associates
C.P.A.'s,  Inc., whose report, along with the Fund's financial  statements,  are
included in the SAI, which is available upon request.

                                        02/01/98*
                                           to
                                        12/31/98

Net Asset Value:
Beginning of Period                     $ 5.00
Net Investment Income                    (0.07)
Net Gains or Losses on Securities
  (realized  or  unrealized)             (0.09)  
Total From  Investment  Operations       (0.16)
Dividends  (from  net  investment  
  income)                                 0.00  
Distributions (from  capital
  gains)                                 (0.04) 
Return of Capital                         0.00 
Total Distributions                      (0.04) 
Net Asset Value:
  End of Period                           4.80
Total Return                             -3.27%
Ratios/Supplemental Data
Net Assets End of Period (Thousands)      3,159
Ratio of Expenses to Average Net Assets   2.69%
Ratio of Net Income to Average Net 
  Assets                                 -1.33%
Portfolio Turnover Rate                  89.11%

*Commencement of operations.

Notes  to  Financial  Statements appear in the Fund's  Statement  of  Additional
Information.
<PAGE>

                              APPENDIX A
                     Description of Bond Ratings*

       AAA:  Bonds  rated  AAA have the highest rating assigned  by  Standard  &
Poor's  to  a debt obligation.  Capacity to pay interest and repay principal  is
extremely strong.

       AA:  Bonds rated AA have very strong  capacity to pay  interest and repay
principal and differ from the highest rated issues only in small degree.

       A:  Bonds  rated A have a  strong  capacity  to pay  interest  and  repay
principal  although they are somewhat more susceptible to the adverse effects of
changes in circumstances and economic  conditions than bonds in the higher rated
categories.

       BBB:  Bonds rated BBB are regarded as having an adequate  capacity to pay
interest and repay principal.  Whereas they normally exhibit adequate protection
parameters,  adverse  economic  conditions  or changing  circumstances  are more
likely to lead to a weakened  capacity to pay interest and repay  principal  for
bonds in this category than for the bonds in higher rated categories.

       BB, B, CCC and CC:  Bonds rated BB, B, CCC and CC are regarded on balance
as predominantly  speculative with respect to capacity to pay interest and repay
principal in  accordance  with the terms of the  obligation.  BB  indicates  the
lowest degree of  speculation  and CC the highest degree of  speculation.  While
such debt will likely have some quality and  protective  characteristics,  these
are  outweighed  by large  uncertainties  or major  risk  exposures  to  adverse
conditions.




*As described by Standard & Poor's Corporation.
<PAGE>
TABLE OF CONTENTS                                                 Page

RISK/RETURN SUMMARY                                                  2
HOW TO PURCHASE SHARES                                              13
HOW TO REDEEM SHARES                                                15
SYSTEMATIC WITHDRAWAL PLAN                                          17
INVESTMENT MANAGEMENT                                               17
DIVIDENDS, DISTRIBUTIONS AND TAXES                                  18
THE YEAR 2000 PROBLEM                                               18
GENERAL INFORMATION                                                 19
FINANCIAL HIGHLIGHTS                                                20
APPENDIX A                                                          25




     A Statement  of  Additional  Information  (SAI) dated  April 30,  1999,  is
incorporated by reference into this prospectus. Additional information about the
Funds' investments is available in the Funds' annual and semi-annual  reports to
shareholders.  The annual report  discusses  market  conditions  and  investment
strategies that  significantly  affected each Fund's performance during its last
fiscal year. To obtain the SAI, the annual report,  semi-annual report and other
information without charge and to make shareholder  inquires,  call the Funds at
1-800-44-MAXUS.

     Information  about each Fund (including the SAI) can be reviewed and copied
at the Public  Reference  Room of the  Securities  and  Exchange  Commission  in
Washington,  D.C. Reports and other information about each Fund are available on
the  Commission's  Internet  site  at  http://www.sec.gov  and  copies  of  this
information may be obtained,  upon payment of a duplicating  fee, by writing the
Public Reference Section of the Commission, Washington, D.C. 20549-6009. You can
call  1-800-SEC-0330  for information on the Public Reference Room's  operations
and copying charges.


          The Maxus Funds
          The Tower at Erieview, 36th Floor
          1301 East Ninth Street
          Cleveland, Ohio  44114
          (216) 687-1000

Investment Company Act File Nos:        Income Fund:        811-4144
                                        Equity Fund:        811-5865
                                        Laureate Fund:      811-7516
                                        Ohio Heartland and
                                        Aggressive Value Funds:  811-8499

1
MAXUS FUND PROSPECTUS
<PAGE>STATEMENT OF ADDITIONAL INFORMATION              April 30, 1999


                            MAXUS OHIO HEARTLAND FUND
                           MAXUS AGGRESSIVE VALUE FUND
                        The Tower at Erieview, 36th Floor
                             1301 East Ninth Street
                              Cleveland, Ohio 44114
                                 (216) 687-1000


     Maxus Ohio Heartland Fund and Maxus Aggressive Value Fund (the "Funds") are
separate  diversified  portfolios  of  MaxFund  Trust,  an  open-end  management
investment company.  The investment objective of Maxus Ohio Heartland Fund is to
obtain a high total return (a combination of capital  appreciation  and income).
The  investment  objective of Maxus  Aggressive  Value Fund is to obtain capital
appreciation.  This Statement of Additional  Information is not a prospectus.  A
copy of the Funds' prospectus can be obtained from the Fund's distributor, Maxus
Securities  Corp,  The Tower at Erieview,  36th Floor,  1301 East Ninth  Street,
Cleveland, Ohio 44114, telephone number (216) 687-1000.

     The date of this Statement of Additional  Information and of the prospectus
to which it relates is April 30, 1999.
<PAGE>
                       TABLE OF CONTENTS


CAPTION                           PAGE      LOCATION IN PROSPECTUS

Fund History                         3      Not Applicable

Investments and Risks                3      Maxus Ohio Heartland Fund -
                                            Risk/Return Summary and
                                            Maxus Aggressive Value Fund -
                                            Risk/Return Summary

Management of the Fund               6      Investment Management

Ownership of Shares                  8      Not Applicable

Investment Advisory and 
  Other Services                     9      Investment Management

Brokerage Allocation                10      Not Applicable

Capital Stock and Other Securities  12      Not Applicable

Purchase, Redemption and Pricing    13      How to Purchase Shares/
of Shares                                   How to Redeem Shares

Taxation of Fund                    14      Dividends, Distributions
                                            and Taxes

Distributor                         14      Investment Management

Performance                         14      Not Applicable

Financial Statements                15      Maxus Ohio Heartland Fund -
                                            Financial Highlights and
                                            Maxus Aggressive Value Fund -
                                            Financial Highlights
<PAGE>
                          FUND HISTORY


     MaxFund  Trust (the "Trust") was organized as a Trust under the laws of the
State of Ohio pursuant to a Declaration of Trust dated November 7, 1997.


                     INVESTMENTS AND RISKS

Classification

     Each of the Funds is a  diversified  portfolio  of the Trust,  an  open-end
management investment company.

Investment Strategies and Risks

     The  principal  investment  strategies  used by each  Fund  to  pursue  its
investment  objective,  together with the  principal  risks of investing in such
Fund,  are described in the  Prospectus  under the heading "Maxus Ohio Heartland
Fund - Risk/Return Summary" and "Maxus Aggressive Value Fund - Risk/Return
Summary."

     Described  below  are  certain  other  investment   strategies   (including
strategies to invest in particular types of securities)  which are not principal
strategies.

     Maxus  Ohio  Heartland  Fund may  invest a portion  of its total  assets in
high-quality  commercial paper (i.e., rated A-1 or A-2 by Standard & Poor's) and
other money market  instruments,  investment  grade  corporate  debt  securities
(i.e.,  rated BBB or better by  Standard & Poor's),  preferred  stock and equity
securities of companies not headquartered in Ohio.

     Maxus  Aggressive  Value Fund may  invest a portion of its total  assets in
high-quality  commercial paper (i.e., rated A-1 or A-2 by Standard & Poor's) and
other money market  instruments,  investment  grade  corporate  debt  securities
(i.e.,  rated BBB or better by  Standard & Poor's),  preferred  stock and equity
securities of companies having a market value of more than $200,000,000.

     The  portfolio  of each Fund will be  exposed to the  following  additional
risks in connection with its investments in debt securities:

     o    Prices of debt  securities  rise and fall in response to interest rate
          changes for similar securities.  Generally,  when interest rates rise,
          prices of debt  securities  fall. To the extent that a Fund invests in
          debt  securities,  the net asset value of the Fund may decrease during
          period of rising interest rates.

     o    An issuer of debt  securities  may default (fail to repay interest and
          principal when due). If an issuer defaults or the risk of such default
          is perceived to have increased,  the Fund will lose all or part of its
          investment. To the extent that a Fund invests in debt securities,  the
          net  asset  value  of the Fund may fall  during  periods  of  economic
          downturn when such defaults or risk of defaults increases.
<PAGE>
     o    Securities  rated below  investment  grade,  also known as junk bonds,
          generally entail greater risks than investment grade  securities.  For
          example,  their  prices  are  more  volatile,  their  values  are more
          negatively  impacted by economic  downturns,  and their trading market
          may be more limited.

Fund Policies

     Each Fund has adopted the  following  fundamental  investment  policies and
restrictions.  These policies cannot be changed without  approval by the holders
of a majority of the  outstanding  voting  securities of the Fund. As defined in
the Act, the "vote of a majority of the  outstanding  voting  securities" of the
Fund  means  the  lesser  of the vote of (a) 67% of the  shares of the Fund at a
meeting where more than 50% of the  outstanding  shares are present in person or
by proxy or (b) more than 50% of the  outstanding  shares  of the Fund.  Neither
Fund may:

          1.  Invest  more  than 5% of the  value  of its  total  assets  in the
     securities of any one issuer  (except  obligations  issued or guaranteed by
     the United States Government, its agencies and instrumentalities);

          2. Acquire more than 10% of the outstanding  voting  securities of any
     one issuer;

          3. Invest more than 25% of the value of such  Fund's  total  assets in
     securities of companies in a particular industry (except obligations issued
     or  guaranteed  by  the  United   States   Government,   its  agencies  and
     instrumentalities);

          4. Invest in  securities  of other  registered  investment  companies,
     except by purchase in the open market  involving only  customary  brokerage
     commissions, or except as part of a merger,  consolidation,  reorganization
     or acquisition;

          5.  Invest  in  securities  of any  registered  closed-end  investment
     company,  if immediately after such purchase or acquisition such Fund would
     own more than 3% of the total  outstanding  voting stock of such closed-end
     company.

          6. Invest more than 10% of the Fund's  total assets in  securities  of
     issuers  which  with  their  predecessors  have a record of less than three
     years continuous operation.

          7.  Invest  more than 10% of the Fund's net assets in  securities  for
     which market quotations are not readily available and repurchase agreements
     maturing in more than seven days.

          8.  Lend   money  or   securities,   provided   that  the   making  of
     interest-bearing  demand  deposits  with  banks  and the  purchase  of debt
     securities in accordance with its objective and policies are not prohibited
     and the Fund may lend its portfolio securities as described above under the
     caption "Lending of Portfolio Securities."
<PAGE>
          9. Borrow money except for temporary or emergency  purposes from banks
     (but not for the purpose of purchase  of  investments)  and then only in an
     amount  not to exceed 5% of the  Fund's  net  assets;  or pledge the Fund's
     securities or receivables or transfer or assign or otherwise  encumber them
     in an amount exceeding the amount of the borrowings secured thereby.

          10. Make short sales of  securities,  or purchase  any  securities  on
     margin except to obtain such short-term credits as may be necessary for the
     clearance of transactions.

          11. Write (sell) put or call options,  combinations thereof or similar
     options;  nor may it  purchase  put or call  options if more than 5% of the
     Fund's net assets  would be invested  in premiums on put and call  options,
     combinations thereof or similar options.

          12.  Purchase  or retain  the  securities  of any issuer if any of the
     officers  or  Trustees  of  the  Fund  or  its   investment   adviser  owns
     beneficially  more  than 1/2 of 1% of the  securities  of such  issuer  and
     together own more than 5% of the securities of such issuer.

          13.  Invest for the purpose of  exercising  control or  management  of
     another issuer.

          14. Invest in  commodities or commodity  futures  contracts or in real
     estate,  although  it may invest in  securities  which are  secured by real
     estate and securities of issuers which invest or deal in real estate.

          15.  Invest in interests in oil, gas or other mineral  exploration  or
     development  programs,  although it may invest in the securities of issuers
     which invest in or sponsor such programs.

          16.  Underwrite  securities  issued by others except to the extent the
     Fund may be deemed to be an underwriter, under the federal securities laws,
     in connection with the disposition of portfolio securities.

          17. Issue senior securities as defined in the Act.

          18. Purchase  securities  subject to restrictions on disposition under
     the Securities Act of 1933.

If a percentage  restriction  is adhered to at the time of  investment,  a later
increase or decrease in percentage  beyond the specified  limit resulting from a
change in values or net assets will not be considered a violation.
<PAGE>
Defensive Investments

     When the  Adviser  believes  that  market  conditions  warrant a  temporary
defensive posture, each Fund may invest up to 100% of its assets in high-quality
short-term  debt securities and money market  instruments,  such as money market
mutual funds, commercial paper,  certificates of deposit and bank or savings and
loan  association  interest-bearing  demand  accounts.  The  taking  of  such  a
temporary  defensive  posture  may  adversely  affect the ability of the Fund to
achieve its investment objective.

Portfolio Turnover

     The Funds are not  restricted  with regard to  portfolio  turnover and will
make changes in their  investment  portfolios  from time to time as business and
economic   conditions  and  market  prices  may  dictate  and  their  respective
investment  policies may require.  The portfolio  turnover rates in 1998 were 6%
for Maxus Ohio  Heartland Fund and 89% for Maxus  Aggressive  Value Fund. A high
rate of portfolio turnover in any year will increase brokerage  commissions paid
and could  result in high  amounts of realized  investment  gain  subject to the
payment of taxes by shareholders.


                    MANAGEMENT OF THE FUNDS

     The Board of Trustees  is  responsible  for  managing  the Funds'  business
affairs and for  exercising  all the Funds' powers except those reserved for the
shareholders.  The  day-to-day  operations  of  each  Fund is  conducted  by its
officers. The following table provides biographical  information with respect to
each  current  Trustee and officer of the Funds.  Each  Trustee who is or may be
deemed to be an  "interested  person"  of the Funds,  as defined in the Act,  is
indicated by an  asterisk.  Each Trustee of the Funds is also a Trustee of Maxus
Income Fund,  Maxus Equity Fund and Maxus  Laureate  Fund,  three other open-end
management investment companies.

                         Position Held    Principal Occupation(s)
Name and Address         With the Fund      During Past 5 Years

Richard A. Barone*       Chairman,      President of Maxus Securities
The Tower at Erieview,   Treasurer      Corp (broker-dealer), Maxus
36th Floor               and Trustee    Asset Management Inc. (investment
1301 East Ninth Street                  adviser) and Resource Management,
Cleveland, Ohio 44114                   Inc.,   dba   Maxus   Investment   Group
                                        (financial services)

Denis J. Amato*          Trustee        Chief Investment Officer, Gelfand.
The Tower at Erieview,                  Maxus Asset Management, Inc.
36th Floor                              (investment  adviser)  since  1997;
1301 East Ninth Street                  previously, Managing Director,
Cleveland, Ohio 44114                   Gelfand    Partners   Asset   Management
                                        (investment adviser)
<PAGE>
Kent W. Clapp            Trustee        Chairman, Medical Mutual of Ohio
2060 East Ninth Street                  (health insurer)
Cleveland, Ohio  44114

Steven M. Kasarnich      Trustee        President/Business Manager, Northeast
47 Alice Drive                          Ohio District Council of Carpenters;
Akron, Ohio  44319                      Executive Secretary-Treasurer, Ohio
                                        State Council of Carpenters

Burton D. Morgan         Trustee        Chairman, Morgan Bank (bank);
Park Place                              President, Basic Search, Inc.
10 West Streetsboro Road                (venture capital); Chairman,
Hudson, Ohio  44236                     Multi-Color Corporation (printing);
                                        Chairman, Morgan Funshares, Inc. (mutual
                                        fund)

Michael A. Rossi, C.P.A. Trustee        Certified Public Accountant
6559 Wilson Mills Road
Highland Heights, Ohio  44143

Joseph H. Smith          Trustee        Chief Financial Officer,
1404 East Ninth Street                  Diocese of Cleveland
8th Floor
Cleveland, Ohio  44114

Robert J. Conrad         Vice President Vice President, Resource Management,
The  Tower  at  Erieview,               Inc.; formerly  Vice  President,
36th Floor                              American Income Plus
1301 East Ninth Street                  
Cleveland, Ohio  44114

Robert W. Curtin         Secretary      Senior Vice President and  Secretary,
The Tower at Erieview,                  Maxus  Securities  Corp;  formerly
36th Floor                              Executive Vice President, 
1301 East Ninth Street                  Roulston & Company, Inc.
Cleveland, Ohio 44114


     No officer,  director or employee of Maxus Asset  Management Inc. ("MAM" or
the  "Investment   Adviser")  or  of  any  parent  or  subsidiary  receives  any
compensation  from the Funds for  serving as an officer or Trustee of the Funds.
Each Trustee who is not an interested  person in MAM will receive from each Fund
the following fees for each Board or  shareholders  meeting  attended:  $100 per
meeting if net assets of the Fund are under $10,000,000; $200 per meeting if net
assets of the Fund are between $10,000,000 and $50,000,000; and $300 per meeting
if net assets of the Fund are over  $50,000,000.  The estimated  fees payable to
the Trustees for the current  fiscal year,  which are the only  compensation  or
benefits payable to Trustees, are summarized in the following table:
<PAGE>
 Compensation Table

  Name of Trustee       Aggregate         Total
                      Compensation    Compensation
                        from each    From All Maxus
                          Fund        Funds Payable
                                       to Trustees

Richard A. Barone         $  0           $    0

Denis J. Amato            $  0           $    0

Kent W. Clapp             $400           $1,600

Steven M. Kasarnich       $400           $1,600

Burton D. Morgan          $400           $4,400

Michael A. Rossi          $400           $4,400

Joseph H. Smith           $400           $1,600


                      OWNERSHIP OF SHARES

     As of  February  19,  1999,  the  following  persons  were  known to be the
beneficial  owner of more than 5% of the  outstanding  shares  of the  indicated
Fund:


                     Beneficial         Number
     Fund                Owner        of Shares     Percentage

Ohio Heartland   Donalson Lufkin        41,182         17%
                 Jenrette
                 P.O. Box 2052
                 Jersey City, NJ
                 07303

Ohio Heartland   National City Bank,   27,624`         11%
                 Trustee
                 Jocelyn Linsalata
                 Trust
                 P.O. Box 94984
                 Cleveland, OH 44101

Aggressive       Resource Management   200,755         19%
Value            Inc.
                 1301 E. Ninth
                 Street
                 Suite 3600
                 Cleveland, OH 44114

     As of February 19, 1999, all officers and Trustees as a group  beneficially
owned (i) 10,297 shares, constituting 4% of the outstanding shares of Maxus Ohio
Heartland  Fund and (ii) 200,935  shares,  constituting  19% of the  outstanding
shares of Maxus Aggressive Value Fund.
<PAGE>
             INVESTMENT ADVISORY AND OTHER SERVICES

Investment Adviser

     Maxus Asset Management,  Inc. ("MAM"),  the Funds' investment adviser, is a
wholly-owned  subsidiary of Resource  Management  Inc.,  d/b/a Maxus  Investment
Group,  an Ohio  corporation  ("RMI") with interests  primarily in the financial
services  industry.  RMI also owns all of the shares of Maxus  Securities  Corp.
("MSC"),  the NASD broker/dealer  through which shares of each Fund are offered.
Richard A.  Barone is the  president  and a  principal  shareholder  of RMI and,
therefore, is deemed to be in control of MAM and MSC.

     As compensation for MAM's services  rendered to each Fund, each Fund pays a
fee, computed and paid monthly,  at an annual rate of 1% of the average value of
the first  $150,000,000 of the Fund's daily net assets and .75% of average daily
net assets in excess of $150,000,000.  For 1998, the Adviser received management
fees from Maxus Ohio  Heartland  Fund in the  amounts of $16,389  and from Maxus
Aggressive Value Fund in the amount of $29,111.

     Subject to the  supervision and direction of the Funds'  Trustees,  MAM, as
investment  adviser,  manages the portfolio of each Fund in accordance  with the
stated  policies of the Fund. MAM makes  investment  decisions for the Funds and
places the purchase and sale orders for portfolio transactions. In addition, MAM
furnishes office facilities and clerical and administrative  services,  and pays
the salaries of all officers and  employees  who are employed by both it and the
Fund and, subject to the direction of the Board of Trustees,  is responsible for
the overall  management  of the  business  affairs of the Funds,  including  the
provision  of personnel  for  recordkeeping,  the  preparation  of  governmental
reports and responding to shareholder communications.

     Other  expenses  are  borne by the  Funds and  include  brokerage  fees and
commissions,  fees of Trustees not affiliated with MAM, expenses of registration
of the Fund and of the  shares  of the Fund  with the  Securities  and  Exchange
Commission  (the  "SEC")  and the  various  states,  charges  of the  custodian,
dividend and transfer  agent,  outside  auditing and legal  expenses,  liability
insurance premiums on property or personnel  (including  officers and trustees),
maintenance of business trust existence, any taxes payable by the Fund, interest
payments relating to Fund borrowings,  costs of preparing,  printing and mailing
registration  statements,  prospectuses,  periodic  reports and other  documents
furnished to shareholders  and regulatory  authorities,  costs of printing share
certificates,  portfolio  pricing  services and Fund meetings,  amortization  of
organizational  expenses and costs  incurred  pursuant to the  Distribution  and
Shareholder Servicing Plans described below.

Distribution Plans

     Each Fund has a Distribution  and  Shareholder  Servicing Plan (the "Plan")
pursuant  to Rule  12b-1  under the Act,  pursuant  to which the Fund pays Maxus
Securities  Corp ("MSC") .50% of average net assets of Investor  Shares annually
for the costs of activities  intended to result in the sale of Investor  Shares,
regardless of the amount of expenses actually incurred by MSC. In 1998, pursuant
to the  Plan,  $5,643  (.50% of  average  net  assets)  was  paid by Maxus  Ohio
Heartland  Fund to MSC and $9,576 (.50% of average net assets) was paid by Maxus
Aggressive  Value  Fund  to MSC.  Of such  amount,  $14,230  was  used by MSC to
compensate  securities dealers and other persons and organizations for providing
distribution  assistance  and  shareholder  services  with  respect to  Investor
Shares, and $989 was expended for advertising and marketing.
<PAGE>
     Neither Fund participates in any joint distribution activities with respect
to another series or investment company.

     The Trustees  believe  that the Plan has  benefitted  and will  continue to
benefit the Funds and the holders of Investor Shares.  Among these benefits are:
(1)  reductions in the per share  expenses of the Funds as a result of increased
assets  in  the  Funds;  (2)  reductions  in the  cost  of  executing  portfolio
transactions and the possible ability of the Investment Adviser in some cases to
negotiate lower purchase prices for  securities,  due to the potentially  larger
blocks of  securities  which  may be  traded  by the  Funds as their net  assets
increase  in size;  and (3) a more  predictable  flow of cash which may  provide
investment flexibility in seeking the Funds' investment objective and may better
enable  the  Funds to meet  redemption  demands  without  liquidating  portfolio
securities at inopportune times.

Other Service Providers

     Each  Fund  has  entered  into  an  Administration   Agreement  with  Maxus
Information Systems Inc. ("MIS"), pursuant to which MIS has agreed to act as the
Fund's  Transfer,  Redemption  and  Dividend  Disbursing  Agent.  As  such,  MIS
maintains the Funds'  official  record of  shareholders  and is responsible  for
crediting  dividends  to  shareholders'   accounts.  In  consideration  of  such
services,  each Fund pays MIS an annual fee,  paid  monthly,  equal to $6.75 per
shareholder account (with a monthly minimum of $775) plus $12 per month for each
state in which the Fund is registered  under such state's  securities laws, plus
out-of-pocket  expenses.  In addition,  each Fund has entered into an Accounting
Services  Agreement  with  MIS,  pursuant  to which MIS has  agreed  to  provide
portfolio  pricing  and  related  services,  for the payment of an annual fee of
$17,400 for the first $25,000,000 in net assets, $8,500 for the next $25,000,000
in net assets and $4,750 for each  additional  $25,000,000  in net assets,  plus
out-of-pocket expenses. For 1998, Maxus Ohio Heartland Fund and Maxus Aggressive
Value  Fund paid MIS fees in the  amounts of $4,497  and  $7,940,  respectively,
under the Administration Agreement and the Accounting Services Agreement. MIS is
a subsidiary of RMI, the parent company of the Investment Adviser.

     Star Bank, N.A., 425 Walnut Street,  Cincinnati,  Ohio 45201, serves as the
Funds' custodian.  As custodian,  Star Bank maintains custody of the Funds' cash
and portfolio securities.

     McCurdy  &  Associates  C.P.A.'s,   Inc.,   independent   certified  public
accountants  located at 27955  Clemens  Road,  Westlake,  Ohio  44145,  has been
selected as  auditors  for the Funds.  In such  capacity,  McCurdy &  Associates
C.P.A.'s, Inc. periodically reviews the accounting and financial records of each
Fund and examines its financial statements.
<PAGE>
                      BROKERAGE ALLOCATION

     Decisions to buy and sell  securities  for the Fund are made by MAM subject
to the  overall  supervision  and  review by the  Trustees.  Portfolio  security
transactions for the Funds are effected by or under the supervision of MAM.

     Transactions on stock exchanges involve the payment of negotiated brokerage
commissions.  There is generally no stated  commission in the case of securities
traded  in the  over-the-counter  markets,  but the  price of  those  securities
includes an undisclosed  commission or markup. The cost of securities  purchased
from  underwriters  includes an underwriting  commission or concession,  and the
prices at which  securities  are  purchased  from and sold to dealers  include a
dealer's markup or markdown.

     In executing  portfolio  transactions and selecting brokers and dealers, it
is the Funds' policy to seek the best overall terms  available.  The  Investment
Advisory and  Administration  Agreement between the Funds and MAM provides that,
in assessing the best overall terms  available  for any  transaction,  MAM shall
consider the factors it deems  relevant,  including the breadth of the market in
the security,  the price of the security,  the financial condition and execution
capability of the broker or dealer, and the reasonableness of the commission, if
any, for the specific  transaction and on a continuing  basis. In addition,  the
Investment  Advisory and Administration  Agreement  authorizes MAM, in selecting
brokers or dealers to execute a particular  transaction,  and, in evaluating the
best overall terms  available,  to consider the brokerage and research  services
(as those terms are defined in Section 28(e) of the  Securities  Exchange Act of
1934)  provided to the Funds  and/or  other  accounts  over which MAM  exercises
investment discretion.

     The Board of  Trustees  periodically  reviews the  commissions  paid by the
Funds to determine if the commissions paid over  representative  periods of time
were reasonable in relation to the benefits inuring to the Funds. It is possible
that certain of the services  received will primarily  benefit one or more other
accounts for which investment discretion is exercised. Conversely, the Funds may
be the  primary  beneficiary  of  services  received  as a result  of  portfolio
transactions  effected  for other  accounts.  MAM's  fee  under  the  Investment
Advisory  and  Administration  Agreement  is not  reduced  by  reason  of  MAM's
receiving such brokerage and research services.

     Under the Act,  with  respect  to  transactions  effected  on a  securities
exchange, a mutual fund may not pay brokerage  commissions to an affiliate which
exceed the usual and customary broker's  commissions.  A commission is deemed as
not exceeding the usual and customary broker's  commission if (i) the commission
is reasonable and fair compared to the  commission  received by other brokers in
connection with  comparable  transactions  involving  similar  securities  being
purchased  or sold  during a  comparable  period  of time and (ii) the  Board of
Trustees, including a majority of the Trustees who are not interested persons of
the mutual fund,  have adopted  procedures  reasonably  designed to provide that
such commission is consistent with the  above-described  standard,  review these
procedures annually for their continuing appropriateness and determine quarterly
that all commissions  paid during the preceding  quarter were in compliance with
these procedures.
<PAGE>
     The Board of Trustees has determined that any portfolio transaction for the
Funds  may be  effected  through  MSC if, in MAM's  judgment,  the use of MSC is
likely to result in price and  execution at least as favorable as those of other
qualified brokers, and if, in the transaction, MSC charges the Fund a commission
rate consistent with those charged by MSC to comparable  unaffiliated  customers
in similar  transactions.  Each quarter,  the Trustees review a report comparing
the  commissions  charged each Fund by MSC to industry  norms for similar  sized
transactions both (i) with proprietary research or other valuable services being
provided and (ii) without such services being provided.  Based upon such review,
the Board of Trustees  determines on a quarterly  basis whether the  commissions
charged by MSC meet the  requirements  of the Act. MSC will not  participate  in
commissions from brokerage given by the Funds to other brokers or dealers. Over-
the-counter  purchases and sales are transacted through brokers and dealers with
principal   market  makers.   The  Funds  will  in  no  event  effect  principal
transactions  with  MSC in  over-the-counter  securities  in which  MSC  makes a
market.  MSC is a wholly owned  subsidiary of RMI, a  corporation  controlled by
Richard A.  Barone,  Chairman  of the Trust.  Richard A.  Barone is,  therefore,
considered to control MSC.

     Even though investment  decisions for the Funds are made independently from
those of the other accounts managed by MAM,  investments of the kind made by the
Funds may also be made by those other  accounts.  When the Funds and one or more
accounts  managed by MAM are prepared to invest in, or desire to dispose of, the
same  security,  available  investments  or  opportunities  for  sales  will  be
allocated  in a manner  believed by MAM to be  equitable.  In some  cases,  this
procedure  may  adversely  affect the price paid or received by the Funds or the
size of the position obtained for or disposed of by the Funds.

     During 1998, the aggregate  amount of brokerage  commissions  paid by Maxus
Ohio Heartland Fund  and  Maxus  Aggressive  Value  Fund  to MSC were $9,769 and
$41,250, constituting over 99% of aggregate brokerage commissions paid by  these
funds during such year.


               CAPITAL STOCK AND OTHER SECURITIES

     The  Declaration  of Trust  provides for an unlimited  number of authorized
shares of beneficial  interest,  which may,  without  shareholder  approval,  be
divided  into an  unlimited  number  of  series  of such  shares,  and which are
presently  divided into two series of shares,  one for Maxus Ohio Heartland Fund
and one for  Maxus  Aggressive  Value  Fund.  Each  share  represents  an  equal
proportionate interest in a Fund with other shares of the same series and class,
and is entitled to such dividends and  distributions out of the income earned on
the assets  belonging  to that Fund as are  declared  at the  discretion  of the
Trustees. All consideration received by the Trust for shares of one of the Funds
and all assets in which such  consideration is invested will belong to that Fund
and will be subject to the liabilities relating thereto.

     Shareholders are entitled to one vote per share (with  proportional  voting
for  fractional  shares) on such matters as  shareholders  are entitled to vote.
Shareholders  vote in the  aggregate  and not by series or class on all  matters
except  that  (i)  shares  shall be voted by  individual  series  or class  when
required by the 1940 Act or when the Trustees  have  determined  that the matter
affects only the  interests of a particular  series or class,  and (ii) only the
holders of Investor  Shares will be  entitled  to vote on matters  submitted  to
shareholder vote with regard to the Distribution Plan applicable to such class.
<PAGE>
     Whenever the approval of a majority of the outstanding  shares of the Trust
or a particular Fund is required in connection with  shareholder  approval of an
investment advisory contract,  changes in the investment  objective and policies
or the investment  restrictions,  or approval of a distribution  expense plan, a
"majority"  shall mean the vote of (i) 67% or more of the shares of the Trust or
such  Fund  present  at a  meeting,  if the  holders  of  more  than  50% of the
outstanding  shares of the Trust or such Fund are present in person or by proxy,
or (ii) more  than 50% of the  outstanding  shares  of the  Trust or such  Fund,
whichever is less.

     Although  the  Trust  is  not  required  to  hold  annual  meetings  of the
shareholders,  shareholders  holding  at least  10% of the  Trust's  outstanding
shares  have the right to call a meeting  to elect or remove  one or more of the
Trustees of the Trust.

     Upon issuance and sale in accordance with the terms of the Prospectus, each
share  will be  fully  paid  and  non-assessable.  Shares  have  no  preemptive,
subscription or conversion  rights.  The Declaration of Trust also provides that
shareholders  shall not be subject  to any  personal  liability  for the acts or
obligations  of the Funds and that every  agreement,  obligation  or  instrument
entered into or executed by a Fund shall  contain a provision to the effect that
the shareholders are not personally liable thereunder.


           PURCHASE, REDEMPTION AND PRICING OF SHARES

     The  information  pertaining  to the purchase and  redemption of the Funds'
shares  appearing in the Prospectus  under the captions "How To Purchase Shares"
and "How To Redeem Shares" is hereby incorporated by reference.

     The price  paid for  shares  of a certain  class of a Fund is the net asset
value per share of such  class next  determined  after  receipt by the  Transfer
Agent of properly  identified  purchase funds,  except that the price for shares
purchased by telephone  is the net asset value per share next  determined  after
receipt of  telephone  instructions.  Net asset value per share is computed  for
each class of a Fund as of the close of business  (currently 4:00 P.M., New York
time) each day the New York Stock Exchange is open for trading and on each other
day  during  which  there  is a  sufficient  degree  of  trading  in the  Fund's
investments to affect materially net asset value of its redeemable securities.

     For purposes of pricing sales and redemptions, net asset value per share of
a class  of a Fund  is  calculated  by  determining  the  value  of the  class's
proportional  interest  in the  assets  of  the  Fund,  less  (i)  such  class's
proportional  share of general  liabilities and (ii) the  liabilities  allocable
only to such  class;  and  dividing  such amount by the number of shares of such
class outstanding.
<PAGE>
     For  purposes  of  computing  the net  asset  value  per  share  of a Fund,
securities  listed on a national  securities  exchange or on the NASDAQ National
Market  System will be valued on the basis of the last sale of the date on which
the  valuation  is made or, in the  absence of sales,  at the closing bid price.
Over-the-counter  securities will be valued on the basis of the bid price at the
close  of  business  on each  day  or,  if  market  quotations  are not  readily
available,  at fair value as  determined in good faith by the Board of Trustees.
Unless   the   particular   circumstances   (such  as  an   impairment   of  the
credit-worthiness  of the issuer)  dictate  otherwise,  the fair market value of
short-term  securities  with  maturities  of 60  days  or less  shall  be  their
amortized cost. All other securities and other assets of the Fund will be valued
at their fair value as determined in good faith by the Board of Trustees.


                     TAXATION OF THE FUNDS

     Each Fund intends to qualify each year as a "regulated  investment company"
under the  requirements of Subchapter M of the Internal Revenue Code of 1986, as
amended  (the  "Code").  Qualification  as a regulated  investment  company will
result in each  Fund's  paying no taxes on net income and net  realized  capital
gains  distributed to  shareholders.  If these  requirements are not met, a Fund
will not receive  special tax  treatment  and will pay federal  income tax, thus
reducing the total return of such Fund.

     Statements  as to the  tax  status  of  each  shareholder's  dividends  and
distributions will be mailed annually by the Funds' transfer agent. Shareholders
are urged to consult their own tax advisers  regarding  specific questions as to
Federal, state or local taxes.


                          DISTRIBUTOR

     Shares of the Funds are offered on a best-efforts basis by Maxus Securities
Corp, a registered NASD broker-dealer.  MSC is a wholly-owned subsidiary of RMI,
which is controlled by Richard A. Barone, Chairman of the Fund.

     Pursuant to the Distribution  Agreement  between the Funds and MSC, MSC has
agreed to hold itself available to receive orders,  satisfactory to MSC, for the
purchase  of the shares of each  Fund,  to accept  such  orders on behalf of the
Funds as of the time of receipt of such  orders and to  transmit  such orders to
the Funds' transfer agent as promptly as  practicable.  MSC does not receive any
commissions  or  other  compensation  for the sale of  shares  of  either  Fund.
However,  pursuant to the Plan, MSC receives an annual  distribution fee of .50%
of average net assets of Investor Shares.  Certain  employees of MSC may receive
compensation  under the  Plan.  See  "Investment  Advisory  and  Other  Services
Distribution Plan."

     The  Distribution  Agreement  provides  that MSC shall  arrange to sell the
Funds'  Shares  as  agent  for the  Fund  and may  enter  into  agreements  with
registered  broker-dealers  as it may  select  to  arrange  for the sale of such
shares. MSC is not obligated to sell any certain number of shares.
<PAGE>
                          PERFORMANCE

     From time to time, the Funds may advertise  performance data represented by
a cumulative  total return or an average annual total return.  Total returns are
based on the overall or percentage change in value of a hypothetical  investment
in a Fund and assume all of the Fund's dividends and capital gain  distributions
are reinvested. A cumulative total return reflects the Fund's performance over a
stated period of time. An average annual total return reflects the  hypothetical
annually  compounded  return that would have produced the same cumulative  total
return if the Fund's  performance  had been  constant  over the  entire  period.
Because  average  annual  returns  tend to smooth out  variations  in the Fund's
returns,  it  should  be  recognized  that  they  are  not the  same  as  actual
year-by-year  results.  The total  returns for Investor  Shares of each Fund for
periods ended December 31, 1998 are set forth below.

                   Maxus Ohio Heartland Fund

     Average Annual Total Returns       Cumulative Total Returns
          Life of Fund*               Life of Fund*

          -20.08%                     -20.08%

*From commencement of operations, February 1, 1998.

                           Maxus Aggressive Value Fund

     Average Annual Total Returns     Cumulative Total Returns
          Life of Fund*               Life of Fund*

          -4.23%                      -4.23%

*From commencement of operations, February 1, 1998.

     Performance  may be compared to  well-known  indices  such as the Dow Jones
Industrial Average or alternative  investments such as Treasury Bills. Also, the
Funds  may  include  published   editorial   comments  compiled  by  independent
organizations such as Lipper Analytical Services or Morningstar, Inc.

     All performance  information is historical in nature and is not intended to
represent or guarantee  future  results.  The value of Fund shares when redeemed
may be more or less than their original cost.

     Further information about the performance of each of the Funds is contained
in the Funds' Annual Report to Shareholders  which may be obtained from the Fund
without charge.
<PAGE>
INDEPENDENT AUDITOR'S REPORT



To The Shareholders and Board of Trustees
MaxFund Trust:

We  have  audited  the  statements  of  assets  and  liabilities  including  the
portfolios of investments,  of the MaxFund Trust (comprising,  respectively,  of
the  Maxus  Ohio  Heartland  Fund and the  Maxus  Aggressive  Value  Fund) as of
December 31, 1998, and the related  statements of operations,  the statements of
changes in net  assets,  and the  financial  highlights  for each of the periods
indicated.   These  financial   statements  and  financial  highlights  are  the
responsibility  of the Fund's  management.  Our  responsibility is to express an
opinion on these  financial  statements  and financial  highlights  based on our
audits.

We  conducted  our  audits  in  accordance  with  generally   accepted  auditing
standards.  Those standards require that we plan and perform the audit to obtain
reasonable  assurance  about  whether the  financial  statements  and  financial
highlights are free of material misstatement.  An audit includes examining, on a
test basis,  evidence  supporting  the amounts and  disclosures in the financial
statements.  Our  procedures  included  confirmation  of securities  owned as of
December 31, 1998 by  correspondence  with the custodian  and brokers.  An audit
also includes assessing the accounting principles used and significant estimates
made by  management,  as well as  evaluating  the  overall  financial  statement
presentation.  We believe  that our audits  provide a  reasonable  basis for our
opinion.

In our opinion,  the financial  statements and financial  highlights referred to
above present fairly, in all material  respects,  the financial position of each
of the respective  portfolios  constituting the MaxFund Trust as of December 31,
1998, the results of their operations,  the changes in their net assets, and the
financial  highlights  for each of the  periods  indicated  in  conformity  with
generally accepted accounting principles.




McCurdy & Associates CPA's, Inc.
Westlake, Ohio
January 13, 1999
<PAGE>
 Maxus Ohio Heartland Fund
                                                         Schedule of Investments
                                                               December 31, 1998
 Shares/Principal Amount                              Market Value   % of Assets
 Basic Materials
 2,500        A. Schulman                                 56,719
 2,500        Andersons                                   28,906
 3,000        Brush Wellman                               52,312
 3,500        Hanna,(M.A.)                                43,094
 4,000        Hawk Group *                                33,500
 6,000        Olympic Steel *                             30,000
 2,200        Shiloh Industries *                         28,875
 2,000        Timken                                      37,750
                                                         311,156         15.66%
 Industrial Products & Services
 3,500        Applied Industrial Technologies             48,563
 4,000        Chart Industries                            30,500
 5,250        Corrpro *                                   63,984
 1,000        Parker Hannifin                             32,750
 2,000        RPM Inc                                     32,000
 2,000        Scott Technologies Cl A *                   33,062
 2,000        Stoneridge *                                45,500
                                                         286,359         14.41%
 Consumer Cyclical
 2,000        Baldwin Piano *                             19,250
 1,800        Cooper Tire                                 36,788
 7,500        International Total Service *               37,500
 2,000        Standard Register                           61,875
                                                         155,413          7.82%
 Consumer Staples
 2,600        Bob Evans                                   67,763
 1,500        Consolidated Stores                         30,282
 2,400        Fabri-Centers of America Cl B *             33,300
 5,000        Gibson Greetings *                          59,375
 3,000        Huffy                                       49,500
 3,500        Officemax *                                 42,875
 3,000        RG Barry *                                  33,000
 3,500        Rocky Shoes & Boots *                       20,562
12,000        Royal Appliance *                           44,250
 2,500        Value City Dept. Stores *                   34,844
 2,300        Wendy's                                     50,169
 2,500        Worthington Foods                           47,500
                                                         513,420         25.83%
 Financial
 3,000        Associated Estates Realty                   35,437
 4,000        Boykin Lodging                              49,500
 2,500        First Merit                                 67,188
 4,000        First Union Real Estate                     23,000
 5,000        Great Lakes Bancorp *                       60,000
 2,000        State Auto Financial                        24,750
                                                         259,875         13.07%

*Non-income producing securities
    The accompanying notes are an integral part of the financial statements.
<PAGE>
 Health Care
10,000        Collaborative Clinical Research *           40,000
 2,000        Invacare                                    48,000
                                                          88,000          4.43%
 Technology
 5,500        Allen Telecom *                             36,781
 2,000        Diebold                                     71,375
 4,700        Keithley Instruments                        42,887
 8,500        Pioneer Standard                            79,687
 2,000        Structural Dynamics *                       39,750
 2,000        Telxon                                      27,750
                                                         298,230         15.01%
 Cash Equivalents
75,514        Star Bank Treasury                          75,514          3.80%

        Total Investments (Cost - $2,353,265 )         1,987,967        100.03%

        Other Assets Less Liabilities                       (647)       - 0.03%

        Net Assets - Equivalent                        1,987,320        100.00%


*Non-income producing securities
    The accompanying notes are an integral part of the financial statements.
<PAGE>
 Maxus Aggressive Value Fund
                                                         Schedule of Investments
                                                               December 31, 1998
 Shares/Principal Amount                              Market Value   % of Assets
 Basic Materials
 15,000       Birmingham Steel                            62,813
400,000       Campbell Resources *                       100,000
 10,000       Olympic Steel *                             50,000
                                                         212,813         4.93%
 Consumer Products
 10,000       Cone Mills *                                56,250
 20,000       Designs *                                   38,750
 15,000       Donna Karan *                              114,375
 65,000       First Team Sports *                         89,375
 40,000       Martin Industries                          110,000
 50,000       Michael Anthony Jewelers *                 162,500
 47,500       Parlux Fragrance *                          65,625
 21,100       Saucony Cl A *                             150,338
 20,000       Scheid Vineyards *                          97,500
 20,000       Scotts Liquid Gold                          28,750
 10,000       TCBY Enterprises                            70,000
 10,000       Tultex *                                     8,750
                                                         992,213        22.99%
 Education
 10,000       Whitman Education Group *                   33,125         0.77%

 Energy
 25,000       Howell                                      51,562
 40,000       Patina Oil & Gas                           117,500
                                                         169,062         3.92%
 Entertainment
 16,000       Baldwin Piano *                            154,000
 15,000       Isle Capri Casinos *                        59,531
 19,800       Royal Olympic Cruises *                     66,825
                                                         280,356         6.50%
 Financial Services
  5,700       Atlanta Sosnoff Capital                     47,381
 10,000       Great Lakes Bancorp *                      120,000
  7,500       National Discount Brokers *                150,000
                                                         317,381         7.35%
 Industrial Products & Services
 38,500       Catalina Lighting *                         86,625 
  9,700       Cybex *                                     41,225
 12,000       FerroFluidics *                             34,500
 12,000       Flow International *                       116,250
 15,000       International Total Services *              75,000
                                                         353,600         8.19%


*Non-income producing securities
    The accompanying notes are an integral part of the financial statements.
<PAGE>
 Information Technology
 10,000       Aydin *                                    101,875
 10,000       Cidco Com. *                                28,750
 10,000       Cohr *                                      51,250
 10,000       Datum *                                     65,625
 10,000       In Focus System *                           88,750
 15,000       Media 100 *                                 88,125
 17,000       Perceptron *                               112,625
  7,000       Premisy Communs *                           64,313
 10,000       Standard Microsystmes Com *                 78,125
  3,000       Tech Sym *                                  66,750
 10,000       Trident Microsystems *                      41,250
                                                         787,438        18.25%
 Infrastructure & Environment
 22,000       Foster L B *                               145,750         3.38%

 Machinery & Equipment
  4,000       Cubic                                       75,000         1.74%

 Medical Products & Services
 10,000       Collaborative Clinical Research *           40,000
 15,100       Cholestech *                                57,569
 15,000       Orthologic *                                50,156
                                                         147,725         3.42%
 Realestate
  5,000       Asset Investors                             63,750         1.48%

 Wholesale Distribution
 10,000       Lazare Kaplan *                             70,000
 20,000       Strategic Distribution *                    48,750
                                                         118,750         2.75%
 Closed End Eqity Funds
 23,000       Brantley Capital                           163,875
  7,000       Equus II                                   112,875
                                                         276,750         6.41%
 Cash Equivalents
412,403       Star Bank Treasury                         412,403         9.56%

        Total Investments (Cost - $4,494,690)          4,386,116       101.64%

        Other Assets Less Liabilities                    (70,853)       -1.64%

        Net Assets - Equivalent                        4,315,263       100.00%

*Non-income producing securities
    The accompanying notes are an integral part of the financial statements.
<PAGE>
Statement of Assets & Liabilities
Ohio Heartland & Aggressive Value Funds                 December 31, 1998

                                                          Ohio
                                                        Heartland     Aggressive
                                                           Fund       Value Fund
Assets:
     Investment Securities at Market Value              1,987,967     4,386,116
       (Identified Costs - $2,353,265 and $4,494,690)
     Cash                                                   4,855         5,887
     Receivables:
       Receivable for investment securities sold                -       171,863
       Dividends and interest receivable                    4,759         2,201
     Unamortized organization costs                        12,464        12,464
Total Assets                                            2,010,045     4,578,531

Liabilities:
     Payable for investment purchased                           -       228,171
     Payable for shareholder distributions                      -         9,862
     Accrued Expenses                                      22,725        25,235
Total Liabilities                                          22,725       263,268
Net Assets                                              1,987,320     4,315,263

Net Assets Consist Of:
     Capital Paid In                                    2,381,819     4,423,825
     Undistributed Net Investment Income                        -             -
     Accumulated Realized Gain (Loss) 
        on Investments - Net                              (29,201)           12
     Unrealized Appreciation in Value
          of Investments Based on Identified Cost - Net  (365,298)     (108,574)
Net Assets                                              1,987,320     4,315,263

Net Assets
     Investors Shares                                   1,234,261     3,159,436
     Institutional Shares                                 753,059     1,155,827
          Total                                         1,987,320     4,315,263

Shares of capital stock
     Investors Shares                                     151,283       658,099
     Institutional Shares                                  92,012       239,994
          Total                                           243,295       898,093

Net asset value per share
     Investors Shares                                       $8.16         $4.80
     Institutional Shares                                   $8.18         $4.82


    The accompanying notes are an integral part of the financial statements.
<PAGE>
Statement of Operations
Ohio Heartland & Aggressive Value Funds                        December 31, 1998

                                                           Ohio
                                                         Heartland    Aggressive
                                                           Fund       Value Fund
Investment Income:
Dividend income                                            $22,447       6,895
Interest income                                             16,720      33,005
Total Income                                                39,167      39,900
Expenses:
Investment advisory fees (Note 2)                           16,389      29,111
Distribution fees (Investor shares)                          5,643       9,576
Distribution fees (Institutional shares)                         -           -
Custodial fees                                               3,101       5,288
Organization costs                                           2,785       2,785
Transfer agent fees/Accounting and Pricing                   4,497       7,940
Legal                                                        8,016       8,109
Audit                                                        6,000       6,000
Registration and filing fees                                   386         447
Trustee fees                                                   400         400
Printing & Other Miscellaneous                               3,903       4,293
Total Expenses                                              51,120      73,949

Net Investment Income (Loss)                               (11,953)    (34,049)

Realized and Unrealized Gain (Loss) on Investments:
Realized Gain (Loss) on Investments                        (29,201)     66,583
Distribution of Realized Capital Gains 
  from other Investment Companies                                -           -
Unrealized Gain (Loss) from Appreciation 
  (Depreciation) on Investments                           (365,298)   (108,574)
Net Realized and Unrealized Gain (Loss) on Investments    (394,499)    (41,991)

Net Increase (Decrease) in Net Assets from Operations    $(406,452)    (76,040)

    The accompanying notes are an integral part of the financial statements.
<PAGE>
Statement of Changes in Net Assets
Ohio Heartland & Aggressive Value Funds                        December 31, 1998

                                                           Ohio       Aggressive
                                                      Heartland Fund  Value Fund
                                                         02/01/98       02/01/98
                                                            to             to
                                                         12/31/98       12/31/98
From Operations:
     Net Investment Income                               (11,953)       (34,049)
     Net Realized Gain (Loss) on Investments             (29,201)        66,583
     Net Unrealized Appreciation (Depreciation)         (365,298)      (108,574)
Increase (Decrease) in Net Assets from Operations       (406,452)       (76,040)

Distributions to investor shareholders:
     Net Investment Income                                     -              -
     Net Realized Gain (Loss) from Security Transactions       -        (23,824)

Distributions to institutional shareholders:
     Net Investment Income                                     -              -
     Net Realized Gain (Loss) from Security Transactions       -         (8,698)
Change in net assets from distributions                        -        (32,522)

From Capital Share Transactions:
     Proceeds from sale of shares                      2,792,343      4,484,083
     Dividend reinvestment                                     -         22,660
     Cost of shares redeemed                            (498,571)      (182,918)
Change in net assets from capital transactions         2,293,772      4,323,825
Change in net assets                                   1,887,320      4,215,263

Net Assets:
     Beginning of period                                 100,000        100,000
     End of period                                     1,987,320      4,315,263

Share Transactions:
     Issued                                              293,342        913,733
     Reinvested                                                -          4,715
     Redeemed                                            (60,047)       (40,355)
Net increase (decrease) in shares                        233,295        878,093
Shares outstanding beginning of period                    10,000         20,000
Shares outstanding end of period                         243,295        898,093

    The accompanying notes are an integral part of the financial statements.
<PAGE>
Financial Highlights
Ohio Heartland & Aggressive Value Funds

Selected data for a share of capital stock 
outstanding throughout the period indicated

                                Ohio Heartland Fund       Aggressive Value Fund
                                2/1/98 to 12/31/98          2/1/98 to 12/31/98
                             Investor    Institutional  Investor   Institutional
Net Asset Value -
     Beginning of Period         10.00        10.00         5.00       5.00
Net Investment Income            (0.05)       (0.03)       (0.07)     (0.05)
Net Gains or Losses on Securities
     (realized and unrealized)   (1.79)       (1.79)       (0.09)     (0.09)
Total from Investment Operations (1.84)       (1.82)       (0.16)     (0.14)
Distributions
     Net investment income           -            -            -          -
     Capital gains                   -            -        (0.04)     (0.04)
     Return of capital               -            -            -          -
          Total Distributions        -            -        (0.04)     (0.04)
Net Asset Value -
     End of Period               $8.16        $8.18        $4.80      $4.82

Total Return                    -18.40%      -18.20%       -3.27%     -2.87%

Ratios/Supplemental Data:
Net Assets at end 
  of period (thousands)          1,234          753        3,159      1,156
Ratio of expenses to 
  average net assets *            3.24%        2.74%        2.69%      2.19%
Ratio of net income to 
  average net assets *           -0.88%       -0.38%       -1.33%     -0.83%
Portfolio turnover rate           6.82%        6.82%      108.60%    108.60%

* Annualized
    The accompanying notes are an integral part of the financial statements.
<PAGE>
Notes to Financial Statements
                                   Maxus Ohio Heartland & Aggressive Value Funds
                                                               December 31, 1998



1.)   SIGNIFICANT ACCOUNTING POLICIES
  Maxus Ohio  Heartland Fund and Maxus  Aggressive  Value Fund (the "Funds") are
  two  separate  diversified  portfolios  of  MaxFund  Trust (the  "Trust"),  an
  open-end management investment company, organized as a Trust under the laws of
  the State of Ohio by a  Declaration  of Trust  dated  November  7,  1997.  The
  investment  objective of Maxus Ohio Heartland Fund is to obtain a total return
  (a  combination  of capital  appreciation  and income).  The Fund pursues this
  objective  by  investing   primarily   in  equity   securities   of  companies
  headquartered  in the  State  of  Ohio.  The  investment  objective  of  Maxus
  Aggressive Value Fund is to obtain capital appreciation. The Fund pursues this
  objective by investing  primarily in equity securities of companies who have a
  total market value of not less the $10,000,000 or more that $200,000,000 as of
  the date of  investment.  Significant  accounting  policies  of the  Funds are
  presented below:

  SECURITY VALUATION
  Both Funds intend to invest in a wide  variety of equity and debt  securities.
  The  investments  in  securities  are  carried  at market  value.  The  market
  quotation  used for  common  stocks,  including  those  listed  on the  NASDAQ
  National  Market  System,  is the last  sale  price  on the date on which  the
  valuation  is made or, in the  absence  of sales,  at the  closing  bid price.
  Over-the-counter  securities  will be  valued on the basis of the bid price at
  the close of each business day. Short-term investments are valued at amortized
  cost, which  approximates  market.  Securities for which market quotations are
  not readily available will be valued at fair value as determined in good faith
  pursuant to procedures established by the Board of Directors.

  SECURITY TRANSACTION TIMING
  Security  transactions are recorded on the dates transactions are entered into
  (the trade dates).  Dividend  income and  distributions  to  shareholders  are
  recorded on the ex-dividend date.  Interest income is recorded as earned. Both
  Funds  use the  identified  cost  basis in  computing  gain or loss on sale of
  investment  securities.  Discounts  and premiums on  securities  purchased are
  amortized over the life of the respective securities.

  INCOME TAXES
  It is both  Funds'  policy  to  distribute  annually,  prior to the end of the
  calendar year,  dividends sufficient to satisfy excise tax requirements of the
  Internal Revenue Service.  This Internal Revenue Service requirement may cause
  an excess of  distributions  over the book  year-end  accumulated  income.  In
  addition,  it is both Funds' policy to distribute  annually,  after the end of
  the  calendar  year,  any  remaining  net  investment  income and net realized
  capital gains.

  ESTIMATES
  The preparation of financial  statements in conformity with generally accepted
  accounting  principles  requires  management to make estimates and assumptions
  that affect the reported  amounts of assets and  liabilities and disclosure of
  contingent assets and liabilities at the date of the financial  statements and
  the reported  amounts of revenues and expenses  during the  reporting  period.
  Actual results could differ from those estimates.


2.)   INVESTMENT ADVISORY AGREEMENT
  The Trust has entered into an investment advisory and administration agreement
  with  Maxus  Asset  Management  Inc. a wholly  owned  subsidiary  of  Resource
  Management Inc. The Investment Advisor receives from each Fund as compensation
  for its services to that Fund an annual fee of 1% on the first $150,000,000 of
  the  Fund's  net  assets,  and  0.75% of the  Fund's  net  assets in excess of
  $150,000,000.
<PAGE>
3.)   RELATED PARTY TRANSACTIONS
  Resource  Management,  Inc. has three wholly owned  subsidiaries which provide
  services to the Funds.  These  subsidiaries  are Maxus Asset  Management  Inc,
  Maxus  Securities  Corp,  and  Maxus  Information  Systems  Inc.  Maxus  Asset
  Management  was paid $16,389 by Maxus Ohio Heartland Fund and $29,111 by Maxus
  Aggressive  Value Fund in  investment  advisory  fees  during the fiscal  year
  ending  December  31,  1998.  Maxus  Securities,  who  served as the  national
  distributor  of the  Funds'  shares,  was  reimbursed  $5,643  by  Maxus  Ohio
  Heartland  Fund and $9,576 by Maxus  Aggressive  Value  Fund for  distribution
  expenses.  Maxus Information  Systems received fees totaling $4,497 from Maxus
  Ohio Heartland Fund and $7,940 from Maxus  Aggressive  Value Fund for services
  rendered to the Fund for the fiscal  year  ending  December  31,  1998.  Maxus
  Securities  is  a  registered   broker-dealer.   Maxus   Securities   effected
  substantially all of the investment  portfolio  transactions for the Fund. For
  this service Maxus Securities  received  commissions of $9,769 from Maxus Ohio
  Heartland  Fund and $41,250  from Maxus  Aggressive  Value Fund for the fiscal
  year ending December 31, 1998.

  At December 31, 1998,  Resource  Management  owned 10,000 shares in Maxus Ohio
  Heartland Fund and 100,000 shares in Maxus Aggressive Value Fund.

  Certain officers and/or trustees of the Funds are officers and/or directors of
  the  Investment  Advisor  and  Administrator.  Each  director  who  is  not an
  "affiliated person" receives an attendance fee of $100 per Fund per meeting.

4.)   CAPITAL STOCK AND DISTRIBUTION
  At December 31, 1998,  an  indefinite  number of shares of capital stock ($.10
  par value) were authorized, and paid-in capital amounted to $2,381,819 for the
  Maxus Ohio Heartland Fund and $4,423,825 for the Maxus Aggressive Value Fund.

  Distributions to shareholders are recorded on the ex-dividend  date.  Payments
  in excess  of net  investment  income or of  accumulated  net  realized  gains
  reported  in  the   financial   statements   are  due  primarily  to  book/tax
  differences.  Payments due to permanent  differences have been charged to paid
  in  capital.  Payments  due to  temporary  differences  have been  charged  to
  distributions in excess of net investment income or realized gains.

5.)   PURCHASES AND SALES OF SECURITIES
  The  table  below  displays  information  describing  purchases  and  sales of
  investment   securities,   both  U.S.  Government  obligations  and  non  U.S.
  Government obligations made during the fiscal year ending December 31, 1998.

                         Maxus Ohio     Maxus Aggressive
    Type of obligation        Heartland Value Fund
                              Fund
   Purchase of non U.S.   2,420,123       6,643,170
       Government *
     Sale of non U.S.        94,732       2,623,190
       Government *
     Purchase of U.S.             0               0
        Government
  Sale of U.S. Government         0               0

  * This value includes short-term investments.

6.)   FINANCIAL INSTRUMENTS DISCLOSURE
  There are no reportable financial  instruments that have any off-balance sheet
  risk as of December 31, 1998.

7.)   SECURITY TRANSACTIONS
  For Federal income tax purposes, the cost of investments owned at December 31,
  1998 was the same as identified cost.
<PAGE>
  At December 31, 1998, the composition of unrealized  appreciation  (the excess
  of value over tax cost) and  depreciation  (the excess of tax cost over value)
  was as follows:

                             Maxus Ohio         Maxus
                           Heartland Fund     Aggressive
                                              Value Fund
        Appreciation         147,042          508,833
       (Depreciation)       (512,340)        (617,407)
      Net Appreciation      (365,298)        (108,574)
       (Depreciation)

8.)       RECLASSIFICATION
  In accordance with AICPA Statement of Position 93-2, the components of the net
  assets of the Ohio  Heartland Fund have been  reclassified  to the extent that
  the net investment  loss of ($11,953)  sustained  during the fiscal year ended
  December 31, 1998,  which  represents  a permanent  difference  for income tax
  purposes, has been reclassified as a decrease in the net capital paid in.


<PAGE>
                             


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