--------------------------------------------------------------------------------
Maxfund Trust
--------------------------------------------------------------------------------
Semi-Annual Report
June 30, 2000
--------------------------------------------------------------------------------
<PAGE>
Dear Shareholders,
For the first six months of 2000, the Maxus family of funds has continued their
exceptional performance relative to their respective market indices and
competing mutual funds. It was a difficult period for both bond and equity
funds. Rising interest rates and a re-emphasis on earning expectations were the
culprits.
Leading our effort in absolute performance was the Maxus Income Fund. Within a
universe of 525 domestic taxable bond funds, Maxus Income was the number one
mutual fund in the country during the first half of the year according to Lipper
Financial Services. During this period alone your Fund produced an 11% total
return, against an average of less than 1% for competing funds and 5.46% for the
Ryan Index.
The Maxus Equity Fund also had an outstanding first six months producing a
return of 11.61% against the Russell 3000 which returned 0.98%, the S&P 500
which returned a negative 0.47% and the Lipper Multi-Cap Value Index which
returned a negative 0.77%. Maxus Equity once again has proven that persistency
and consistency are desirable characteristics for a mutual fund.
After significantly outperforming the competition in 1999, the Maxus Aggressive
Value Fund produced a more modest 4.72% %, exactly in line with the average
micro-cap value fund (4.96%), but behind the average micro-cap fund which
returned 8.55%. In my estimation, micro-cap value is the most compelling market
sector today, and my expectation are exceptionally high for Maxus Aggressive
Value in the next 3 to 5 years.
Starting to show renewed signs of life since the year began were companies
headquartered in Ohio. Reflecting this trend was the Maxus Ohio Heartland Fund.
MOH returned 5.84% during this period.
Finally, our star performer in 1999 found the going a little rougher in the six
months of 2000. Maxus Laureate produced a return of 0.93% against the negative
2.56% return on the Morgan Stanley World Index, an excellent relative
performance nevertheless.
A major characteristic of the stock market during the past five years has been
what I call "sector rotation/correction." Rather than periodic corrections
devastating the entire market, each market sector has run through its own
corrective phase, on its own time, leaving the rest of the market relatively
unchanged. For example, during the first half of 2000, the dot.coms and
overvalued technology issues were taken down, along with auto related and
certain other cyclical stocks, while much of the entire market remained
unchanged.
Investors across the board have been the beneficiaries of this phenomenon as
market psychology has remained unequivocally positive in spite of rising
interest rates and major earnings disappointments. For the remainder of 2000 and
beyond, I am looking for much of the same.
Sincerely,
Richard Barone
<PAGE>
MAXUS OHIO HEARTLAND FUND SCHEDULE OF INVESTMENTS
June 30, 2000 (unaudited)
SHARES / PRINCIPAL AMOUNT MARKET VALUE % ASSETS
COMMON STOCKS
Basic Materials
2,500 A. Schulman $ 30,156
3,000 Brush Wellman 46,875
3,500 Hanna, (M.A.) 31,500
5,500 Hawk Group * 41,594
2,500 Oglebay Norton 63,750
10,000 Olympic Steel * 35,000
------------
248,875 13.8%
Business Consumables
4,000 RPM Inc. 40,500
3,500 Standard Register 49,875
------------
90,375 5.0%
Capital Goods
2,500 Amcast 21,875
4,000 Chart Industries * 19,500
6,750 Corrpro * 21,937
1,500 Diebold 41,813
5,000 Lamson & Sessions * 76,563
5,000 Sifco Industries 31,250
3,000 Stoneridge * 26,250
------------
239,188 13.3%
Consumer Products
2,000 Baldwin Piano * 12,000
5,000 Bob Evans 74,688
2,500 Consolidated Stores * 30,000
6,000 Elder Beerman Stores * 24,750
6,000 Huffy 25,875
15,000 International Total Services 15,937
9,000 Officemax * 45,000
10,000 RG Barry * 38,750
5,000 Rocky Shoes & Boots * 25,312
7,500 Royal Appliance * 42,656
2,500 Smucker, (J.M.) Class B 45,625
1,800 Wendy's International 32,063
------------
412,656 23.0%
Financials
5,000 Ceres Group * 29,687
3,000 KeyCorp 52,875
3,500 Second Bancorp 53,156
4,500 State Auto Financial 53,438
------------
189,156 10.5%
<PAGE>
Healthcare
2,500 Invacare 65,625
5,000 Steris * 44,375
------------
110,000 6.1%
Real Estate
4,000 Associated Estates 28,000
4,000 Boykin Lodging 54,000
------------
82,000 4.6%
Technology
4,000 Allen Telecom * 70,750
5,918 Datatrak * 28,480
3,000 Kendle International * 23,625
3,000 Structural Dynamics * 45,188
3,000 Telxon * 53,625
------------
221,668 12.3%
Wholesale Distribution
1,800 Cooper Tire 20,025
5,000 Pioneer Standard Electronics 73,750
5,000 Rainbow Rentals * 58,125
------------
151,900 8.5%
TOTAL FOR COMMON STOCKS 1,745,818 97.1%
CASH EQUIVALENTS
64,083 Firstar Treasury Fund 4.54% 64,083 3.6%
TOTAL INVESTMENTS (Cost - $2,328,493) 1,809,901 100.7%
OTHER ASSETS LESS LIABILITIES (12,795) -0.7%
NET ASSETS $ 1,797,106 100.0%
* Non-income producing securities
<PAGE>
MAXUS AGGRESSIVE VALUE FUND SCHEDULE OF INVESTMENTS
June 30, 2000 (unaudited)
SHARES / PRINCIPAL AMOUNT MARKET VALUE % ASSETS
COMMON STOCKS
Basic Materials
90,000 Campbell Resources * $ 157,500
17,700 Oglebay Norton 451,350
100,000 Olympic Steel * 350,000
------------
958,850 4.7%
Business Consumables
25,000 Angelica 200,000
150,000 Lanier Worldwide * 150,000
67,000 Mercury Air Group * 335,000
------------
685,000 3.4%
Capital Goods
12,500 Ameron 446,875
20,000 Cubic 375,000
20,000 Flow International * 200,000
43,000 Foster, (L. B.) * 137,062
30,000 Northwest Pipe * 356,250
100,000 Perceptron * 340,625
21,500 Tech-Sym * 604,688
------------
2,460,500 12.0%
Consumer Products
37,500 Allou Health and
Beauty Care * 269,531
150,000 Burlington Industries * 253,125
100,000 Donna Karan * 637,500
15,000 Engle Homes 143,437
40,000 Hartmarx * 102,500
42,000 Jaclyn * 84,000
50,000 Lazare Kaplan
International * 406,250
131,100 Martin Industries * 204,844
86,000 Michael Anthony Jewelers * 236,500
69,000 Movado Group 828,000
29,600 RG Barry * 114,700
100,000 Rainforest Cafe * 296,875
107,500 Rocky Shoes & Boots * 544,219
10,000 Saucony Class A * 102,500
80,000 Sola International * 390,000
70,000 Zapata * 218,750
------------
4,832,731 23.6%
<PAGE>
Energy
120,000 Ethyl 300,000
49,100 Kaneb Services * 196,400
30,000 Patina Oil & Gas 622,500
------------
1,118,900 5.5%
Financials
29,000 Atalanta Sosnoff Capital * 290,000
6,500 Bank Rhode Island 69,875
100,000 Gainsco 500,000
------------
859,875 4.2%
Healthcare
110,000 Carrington Laboratories * 237,188
30,000 Hologic * 202,500
50,000 Orthologic * 246,875
50,000 Spacelabs Medical * 562,500
------------
1,249,063 6.1%
Real Estate
10,000 Asset Investors 118,125
70,000 Associated Estates 490,000
45,000 Bluegreen * 123,750
28,400 Boykin Lodging 383,400
107,000 Excel Legacy * 287,563
40,000 Oakwood Homes 72,500
------------
1,475,338 7.2%
Technology
30,000 Barringer Technologies * 206,250
35,000 Datum * 791,875
10,000 Standard Microsystems * 153,750
25,000 Telxon * 446,875
------------
1,598,750 7.8%
Wholesale Distribution
45,000 Aviall * 222,187
61,100 Park-Ohio Holdings * 526,988
262,600 Strategic Distribution * 508,787
80,000 TBC Corp * 370,000
------------
1,627,962 8.0%
TOTAL FOR COMMON STOCKS 16,866,969 82.5%
CLOSED END EQUITY FUNDS
33,100 Brantley Capital 289,625
60,000 Equus II 637,500
20,000 Templeton China World 152,500
------------
1,079,625 5.3%
CASH EQUIVALENTS
2,138,818 Firstar Treasury Fund 4.54% 2,138,818 10.5%
TOTAL INVESTMENTS (Cost - $20,113,971) 20,085,412 98.3%
OTHER ASSETS LESS LIABILITIES 354,245 1.7%
NET ASSETS $ 20,439,657 100.0%
* Non-income producing securities
<PAGE>
--------------------------------------------------------------------------------
Statement of Assets & Liabilities
--------------------------------------------------------------------------------
Ohio Heartland & Aggressive Value Funds June 30, 2000 (unaudited)
Ohio
Heartland Aggressive
Fund Value Fund
Assets:
Investment securities at market value $ 1,809,901 20,085,412
(Identified cost - $2,328,493 and $20,113,971)
Cash 4,722 5,967
Receivables:
Receivable for investment securities sold - 310,105
Receivable for shareholder purchases - 95,385
Dividends and interest receivable 2,533 38,990
Unamortized organization costs 7,920 7,920
---------- ----------
Total Assets 1,825,076 20,543,779
---------- ----------
Liabilities:
Payable for investment securities purchased - 68,574
Payble to custodian bank 990 (505)
Accrued expenses 26,980 36,053
---------- ----------
Total Liabilities 27,970 104,122
---------- ----------
Net Assets $ 1,797,106 20,439,657
Net Assets Consist Of:
Capital paid in 2,340,344 19,142,270
Accumulated undistributed net
investment income (loss) (6,764) (3,320)
Accumulated undistributed realized
gain (loss) on investments - net (17,882) 1,329,266
Unrealized appreciation (depreciation) in value
of investments based on identified cost - net (518,592) (28,559)
---------- -----------
Net Assets 1,797,106 20,439,657
Net Assets
Investor shares 1,124,705 16,908,870
Institutional shares 672,401 3,530,787
---------- ----------
Total 1,797,106 20,439,657
---------- ----------
Shares of Capital Stock
Investor shares 148,042 2,899,660
Institutional shares 87,772 600,452
---------- ----------
Total 235,814 3,500,112
---------- ----------
Net Asset Value per Share
Investor shares $ 7.60 $ 5.83
Institutional shares $ 7.66 $ 5.88
<PAGE>
--------------------------------------------------------------------------------
Statement of Operations
--------------------------------------------------------------------------------
Ohio Heartland & Aggressive Value Funds June 30, 2000 (unaudited)
Ohio
Heartland Aggressive
Fund Value Fund
Investment Income:
Dividend income $ 19,489 81,166
Interest income 1,436 77,201
---------- ----------
Total Income 20,925 158,367
---------- ----------
Expenses:
Investment advisory fees (Note 2) 9,320 89,271
Distribution fees (investor shares) 2,690 36,245
Transfer agent fees/accounting 2,319 13,934
Registration and filing fees 650 3,130
Audit 2,975 3,375
Custodial fees 2,489 4,833
Legal 4,623 7,489
Organization costs 1,484 1,483
Trustee fees 900 1,800
Printing & other miscellaneous 239 127
---------- ----------
Total Expenses 27,689 161,687
Net investment income (loss) (6,764) (3,320)
Realized and Unrealized Gain (Loss) on Investments:
Realized gain (loss) on investments 11,219 1,344,058
Unrealized appreciation (depreciation)
on investments 100,704 (736,412)
---------- -----------
Net realized and unrealized gain 111,923 607,646
(loss) on investments ---------- -----------
Net increase (decrease) in net
assets from operations $ 105,159 604,326
========== ===========
<PAGE>
--------------------------------------------------------------------------------
Statement of Changes in Net Assets
--------------------------------------------------------------------------------
Ohio Heartland & Aggressive Value Funds June 30, 2000 (unaudited)
<TABLE>
<CAPTION>
Ohio Ohio Aggressive Aggressive
Heartland Fund Heartland Value Fund Value Fund
Fund
01/01/00 01/01/99 01/01/00 01/01/99
to to to to
06/30/00 12/31/99 06/30/00 12/31/99
<S> <C> <C> <C> <C>
From Operations:
Net investment income (6,764) (19,243) (3,320) (74,977)
Net realized gain (loss) on investments 11,219 20,704 1,344,058 602,160
Net unrealized appreciation
(depreciation) 100,704 (253,998) (736,412) 816,427
---------- ---------- ----------- -----------
Increase (decrease) in net assets from
operations 105,159 (252,537) 604,326 1,343,610
---------- ---------- ----------- -----------
Distributions to Investor Shareholders:
Net investment income - - - -
Net realized gain (loss) from
security transactions (11,788) - (35,870) (370,605)
Distributions to Institutional
Shareholders:
Net investment income - - - -
Net realized gain (loss) from
security transactions (8,816) - (6,780) (128,732)
---------- ---------- ----------- -----------
Change in net assets from distributions (20,604) - (42,650) (499,337)
---------- ---------- ----------- -----------
From Capital Share Investor Transactions:
Proceeds from sale of shares 187,049 487,091 9,314,910 6,985,616
Dividend reinvestment 13,128 - 36,707 322,221
Cost of shares redeemed (185,302) (503,089) (2,000,557) (1,806,100)
From Capital Share Institutional Transactions:
Proceeds from sale of shares 32,978 188,675 1,473,409 2,362,244
Dividend reinvestment 4,623 - (2,709) 79,131
Cost of shares redeemed (230,693) (16,692) (1,354,586) (691,841)
---------- ---------- ----------- -----------
Change in net assets from capital (178,217) 155,985 7,467,174 7,251,271
---------- ---------- ----------- -----------
Change in net assets (93,662) (96,552) 8,028,850 8,095,544
Net Assets:
Beginning of period 1,890,768 1,987,320 12,410,807 4,315,263
---------- ---------- ----------- -----------
End of period* 1,797,106 1,890,768 20,439,657 12,410,807
========== ========== =========== ===========
Investor Share Transactions:
Issued 25,242 61,455 1,600,197 1,247,484
Reinvested 1,448 - 4,458 54,574
Redeemed (24,249) (67,137) (340,674) (324,478)
---------- ---------- ----------- -----------
Net increase (decrease) in shares 2,441 (5,682) 1,263,981 977,580
Shares outstanding beginning of period 145,601 151,283 1,635,679 658,099
---------- ---------- ----------- -----------
Shares outstanding end of period 148,042 145,601 2,899,660 1,635,679
========== ========== =========== ==========
Institutional Share Transactions:
Issued 4,410 24,318 242,610 447,918
Reinvested 876 - 861 18,965
Redeemed (31,670) (2,174) (227,329) (122,567)
---------- ---------- ----------- -----------
Net increase (decrease) in shares (26,384) 22,144 16,142 344,316
Shares outstanding beginning of period 114,156 92,012 584,310 239,994
---------- ---------- ----------- -----------
Shares outstanding end of period 87,772 114,156 600,452 584,310
========== ========== =========== ===========
</TABLE>
* Including accumulated undistributed net investment income (loss) of
$(6,764) and $0, respectively, for the Maxus Ohio Heartland Fund, and
$(3,320) and $0, respectively, for the Maxus Aggressive Value Fund.
<PAGE>
--------------------------------------------------------------------------------
Financial Highlights
--------------------------------------------------------------------------------
Ohio Heartland Fund (unaudited) Investor Shares
Selected data for a share of capital stock outstanding
throughout the period indicated
01/01/00 01/01/99 02/01/98**
to to to
06/30/00 12/31/99 12/31/98
Net Asset Value -
Beginning of Period 7.26 8.16 10.00
Net investment income (0.03) (0.07) (0.05)
Net gains (losses) on securities,
realized and unrealized 0.45 (0.83) (1.79)
-------- -------- --------
Total from investment operations 0.42 (0.90) (1.84)
Distributions
Net investment income - - -
Capital gains (0.08) - -
Return of capital - - -
-------- -------- --------
Total distributions (0.08) - -
-------- -------- --------
Net Asset Value
End of Period $ 7.60 $ 7.26 $ 8.16
======== ======== ========
Total return 5.84% -11.03% -18.40%
Ratios/Supplemental Data:
Net assets at end of period (thousands) 1,125 1,057 1,234
Ratio of expenses to average net assets * 2.96% 2.88% * 3.24%
Ratio of net income to average net assets * -0.72% -0.94% * -0.88%
Portfolio turnover rate * 34% 33% * 7%
(unaudited) Institutional Shares
--------------------------------------------------------------------------------
01/01/00 01/01/99 02/01/98**
to to to
06/30/00 12/31/99 12/31/98
Net Asset Value -
Beginning of Period 7.31 8.18 10.00
Net investment income (0.02) (0.04) (0.03)
Net gains (losses) on securities,
realized and unrealized 0.45 (0.83) (1.79)
-------- -------- --------
Total from investment operations 0.43 (0.87) 1.82
Distributions
Net investment income - - -
Capital gains (0.08) - -
Return of capital - - -
-------- -------- --------
Total distributions (0.08) - -
-------- -------- --------
Net Asset Value -
End of Period $ 7.66 $ 7.31 $ 8.18
======== ======== ========
Total return 5.94% -10.64% -18.20%
Ratios/Supplemental Data:
Net assets at end of period (thousands) 672 834 753
Ratio of expenses to average net assets * 2.46% 2.38% * 2.74%
Ratio of net income to average net assets * -0.22% -0.44% * -0.38%
Portfolio turnover rate * 34% 33% * 7%
*annualized
**commencement of operations
<PAGE>
--------------------------------------------------------------------------------
Financial Highlights
--------------------------------------------------------------------------------
Aggressive Value Fund (unaudited) Investor Shares
Selected data for a share of capital stock outstanding
throughout the period indicated
01/01/00 01/01/99 02/01/98**
to to to
06/30/00 12/31/99 12/31/98
Net Asset Value -
Beginning of Period 5.58 4.80 5.00
Net investment income (0.01) (0.06) (0.07)
Net gains (losses) on securities,
realized and unrealized 0.27 1.08 (0.09)
-------- -------- --------
Total from investment operations 0.26 1.02 (0.16)
Distributions
Net investment income - - -
Capital gains (0.01) (0.24) (0.04)
Return of capital - - -
-------- -------- --------
Total distributions (0.01) (0.24) (0.04)
-------- -------- --------
Net Asset Value -
End of Period $ 5.83 $ 5.58 $ 4.80
======== ======== ========
Total return 4.72% 21.19% -3.27%
Ratios/Supplemental Data:
Net assets at end of period (thousands) 16,909 9,128 3,159
Ratio of expenses to average net assets * 1.81% 2.10% * 2.69%
Ratio of net income to average net assets * -0.04% -0.82% * -1.33%
Portfolio turnover rate * 92% 96% * 109%
(unaudited)Institutional Shares
--------------------------------------------------------------------------------
01/01/00 01/01/99 02/01/98**
to to to
06/30/00 12/31/99 12/31/98
Net Asset Value -
Beginning of Period 5.62 4.82 5.00
Net investment income - (0.04) (0.05)
Net gains (losses) on securities,
realized and unrealized 0.27 1.08 (0.09)
-------- -------- --------
Total from investment operations 0.27 1.04 (0.14)
Distributions
Net investment income - - -
Capital gains (0.01) (0.24) (0.04)
Return of capital - - -
-------- -------- --------
Total distributions (0.01) (0.24) (0.04)
-------- -------- --------
Net Asset Value -
End of Period $ 5.88 $ 5.62 $ 4.82
======== ======== ========
Total return 4.87% 21.60% -2.87%
Ratios/Supplemental Data:
Net assets at end of period (thousands) 3,531 3,283 1,156
Ratio of expenses to average net assets * 1.31% 1.60% * 2.19%
Ratio of net income to average net assets * 0.46% -0.32% * -0.83%
Portfolio turnover rate * 92% 96% * 109%
*annualized
**commencement of operations
<PAGE>
NOTES TO FINANCIAL STATEMENTS
MAXUS OHIO HEARTLAND & AGGRESSIVE FUND
JUNE 30, 2000 (UNAUDITED)
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.
Shares of the Funds are divided into two classes, Investor shares and
Institutional shares. Each share represents an equal proportionate interest
in the Funds with other shares of the same class. Investor shares incur a
distribution expense. 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 then $10,000,000 or
more then $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. The Maxus Ohio Heartland Fund has net loss carry forwards
totaling $17,882 that expire in 2007.
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 two wholly owned subsidiaries which provide
services to the Funds. These subsidiaries are Maxus Asset Management Inc.
and Maxus Securities Corp. Maxus Asset Management was paid $9,320 by Maxus
Ohio Heartland Fund and $89,271 by Maxus Aggressive Value Fund in
investment advisory fees during the six months ending June 30, 2000. The
Funds have adopted a Distribution and Shareholder Servicing Plan pursuant
to Rule 12b-1 under the Investment Company Act of 1940. Maxus Securities
has served as the national distributor of the Funds shares. The Funds have
entered into a distribution agreement pursuant to which the Funds pay Maxus
Securities a fee, accrued daily and payable monthly at an annual rate of
.50%, based on the average daily net assets for Investor class only. Maxus
Securities was reimbursed $2,690 by Maxus Ohio Heartland Fund and $36,245
by Maxus Aggressive Value Fund for distribution expenses for the six months
ending June 30, 2000. Resource Management Inc. owns 49% of Mutual
Shareholder Services. Mutual Shareholder Services provides fund accounting
and transfer agent services to the Maxus Ohio Heartland Fund and the Maxus
Aggressive Value Fund. Mutual Shareholder Services received fees totaling
$2,319 from Maxus Ohio Heartland Fund and $13,934 from Maxus Aggressive
Value Fund for services rendered to the Funds for the six months ending
June 30, 2000. 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 $2,253 from Maxus Ohio Heartland Fund and $81,460 from Maxus
Aggressive Value Fund for the six months ending June 30, 2000.
At June 30, 2000, Resource Management Inc. owned 20,000 shares of Maxus
Ohio Heartland Fund and 100,000 shares of Maxus Aggressive Value Fund.
Certain officers and/or trustees of the Funds are officers and/or directors
of the Investment Advisor and Administrator.
4.)CAPITAL STOCK AND DISTRIBUTION
At June 30, 2000, an indefinite number of shares of capital stock ($.10 par
value) were authorized, and paid-in capital amounted to $2,340,344 for the
Maxus Ohio Heartland Fund and $19,142,270 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, excluding short-term securities, made during the
six months ending June 30, 2000.
Maxus Maxus
Type of obligation Ohio Heartland Aggressive Value
Fund Fund
Purchase of non U.S. Government $306,965 $13,428,845
Sale of non U.S. Government 563,229 6,798,715
Purchase of U.S. Government 0 0
Sale of U.S. Government 0 0
<PAGE>
6.)SECURITY TRANSACTIONS
For Federal income tax purposes, the cost of investments owned at June 30,
2000 was the same as identified cost.
At June 30, 2000, 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 Maxus
Ohio Heartland Aggressive Value
Fund Fund
Appreciation $ 202,415 $2,225,638
(Depreciation) (721,007) (2,254,197)
--------- -----------
Net Appreciation (Depreciation) $(518,592) $ (28,559)
========== ===========
<PAGE>
Investment Adviser
Maxus Asset Management, Inc.
1301 East Ninth Street
Cleveland, OH 44114
Transfer Agent
Mutual Shareholder Services, LLC.
1301 E. 9th St., Suite 1005
Cleveland, OH 44114
Custodian
Firstar Bank, NA
425 Walnut Street
P.O. Box 1118
Cincinnati, OH 45201
Legal Counsel
Benesch, Friedlander, Coplan & Aronoff
2300 BP America Building
200 Public Square
Cleveland, OH 44114
Auditors McCurdy & Associates,
CPA's, Inc.
27955 Clemens Road
Westlake, OH 44145
Board of Trustees
Denis J Amato
Richard A Barone
Kent W Clapp
Steven M Kasarnich
Joseph H Smith
Burton D Morgan
Michael A Rossi
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