INCOME
SEMI-ANNUAL
REPORT
MARCH 31, 1995
(UNAUDITED)
Short Term Government
INCOME FUND
Adjustable Rate
U.S. Government
SECURITIES FUND
Intermediate Term
Government
INCOME FUND
<PAGE>
Midwest Group of Funds(R)
MIDWEST TRUST
312 Walnut St., 21st Floor
Cincinnati, Ohio 45202-3874
Nationwide (Toll Free) 800-543-8721
Cincinnati 629-2000
Rate Line 579-0999
Shareholder Services
Nationwide (Toll Free) 800-543-0407
Cincinnati 629-2050
BOARD OF TRUSTEES
Gary W. Heldman
James C. Krumme
H. Jerome Lerner
Robert H. Leshner
Oscar P. Robertson
G. William Rohde
Bruce J. Simpson
OFFICERS
Robert H. Leshner, President
John F. Splain, Secretary
Mark J. Seger, Treasurer
INVESTMENT ADVISER/UNDERWRITER
MIDWEST GROUP FINANCIAL SERVICES, INC.
312 Walnut St., 21st Floor
Cincinnati, Ohio 45202-3874
TRANSFER AGENT
MGF SERVICE CORP.
P.O. Box 5354
Cincinnati, Ohio 45201-5354
This report is authorized for distribution only when it is accompanied or
preceded by a current prospectus of Midwest Trust.
5/95
<PAGE>
LETTER FROM THE PRESIDENT
Dear Fellow Shareholders:
We are pleased to enclose for your review the unaudited semiannual report for
the six months ended March 31, 1995, for the Short Term Government Income Fund,
the Intermediate Term Government Income Fund and the Adjustable Rate U.S.
Government Securities Fund.
Bond prices plummeted as yields on all types of bonds rose substantially in
1994. Short-term rates increased more than long-term rates, which resulted in a
flattening of the yield curve. However, because long-term bonds are more
interest rate sensitive, they declined in value more than their short-term
counterparts.
After a strong performance in 1993, long-term U.S. Government bonds declined by
7.74% in 1994. This return ranks as the second largest annual loss on record.
The total return on intermediate-term government bonds in 1994 was -5.14%. This
return ranks as the largest annual loss in sixty-eight years.
While current economic data continues to be mixed, reports indicate moderate
economic strength sufficient enough to keep the Federal Reserve from raising
interest rates any time in the near future. The slower economy resulted in
declining interest rates and allowed the U.S. Government markets to post
moderate gains during the first quarter of 1995. Intermediate-term maturities
posted the biggest advance. As we move forward, the pace of the economy and the
international exchange value of the dollar will be the primary factors that
drive the U.S. Government markets.
While investors may be worried about the economy, interest rates, the stock
market and taxes, they are also showing a basic interest in fundamental
investing. Midwest Group's conservative approach, seeking to maximize returns
while minimizing risk, has served investors well. Our concentration of high
quality U.S. Treasury and/or U.S. Government agency issues held by the Funds,
plus the flexibility of each Fund's cash position, should appeal to the
risk-adverse investor.
The Intermediate Term Government Income Fund remains an excellent conservative
alternative for investors whose objective is high current income, consistent
with protection of capital . The Fund's yield for March 1994 was 6.18% and 5.80%
for Class A and Class C shares, respectively. Its annualized total return for
Class A shares (excluding the impact of the 2% maximum front-end sales load) for
the six months ended March 31, 1995 was 9.83%.
The Adjustable Rate U.S. Government Securities Fund seeks high current income,
consistent with low volatility of principal. The Fund's yield for March 1994 was
5.53% and its annualized total return (excluding the impact of the 2% maximum
front-end sales load) for the six months ended March 31, 1995 was 3.69%.
If you are undecided about your investment goals or about current market
conditions, consider money market funds to provide you with current income along
with investment stability, liquidity and convenience. As of May 15, 1995, the
Short Term Government Income Fund's 7-day current and effective yields were
5.02% and 5.15%, respectively.
During the first quarter of 1995, Midwest Group introduced the Midwest Global
Bond Fund. It seeks high total return through both income and capital
appreciation. With more than 60% of the world's debt securities issued outside
the United States, the global bond markets offer a wide range of investment
opportunities.
For more than ten years, Rogge Global Partners of London, England, the Global
Bond Fund's investment manager, has provided global investment management to
large global portfolios of $50 million or more. Midwest's Global Bond Fund
allows investors to participate in the global bond markets with this experienced
investment manager at a much lower account size than would otherwise be
available.
It is an excellent opportunity to diversify globally.
While we cannot change the nature of the markets, we can make informed
investment decisions based on a long-term perspective and strategy. In the short
term, we will follow an extremely conservative fixed-income policy.
Sincerely,
Robert H. Leshner
President
<PAGE>
<TABLE>
<CAPTION>
STATEMENTS OF ASSETS AND LIABILITIES
March 31, 1995 (Unaudited)
ADJUSTABLE
SHORT TERM RATE U.S.
GOVERNMENT GOVERNMENT
INCOME SECURITIES
FUND FUND
--------------- ---------------
<S> <C> <C>
ASSETS
Investments in securities:
At acquisition cost.................................................... $ 45,920,690 $ 21,332,038
=============== ===============
At amortized cost...................................................... $ 46,408,404 $ 21,332,038
=============== ===============
At value (Note 1) ..................................................... $ 46,408,404 $ 21,410,857
Investments in repurchase agreements (Note 1)............................. 38,518,000 1,357,000
Cash ..................................................................... 992 64
Interest and principal paydowns receivable................................ 127,348 182,058
Receivable for Fund shares sold........................................... -- 17,188
Other assets.............................................................. 33,129 4,529
--------------- ---------------
TOTAL ASSETS........................................................... 85,087,873 22,971,696
--------------- ---------------
LIABILITIES
Payable for Fund shares redeemed.......................................... -- 581,257
Dividends payable......................................................... 7,721 8,824
Payable to affiliates (Note 3)............................................ 52,343 7,383
Other accrued expenses and liabilities.................................... 8,543 4,750
--------------- ---------------
TOTAL LIABILITIES ..................................................... 68,607 602,214
--------------- ---------------
NET ASSETS .............................................................. $ 85,019,266 $ 22,369,482
=============== ===============
Net assets consist of:
Capital shares............................................................ $ 85,017,039 $ 23,630,797
Accumulated net realized gains (losses) from security transactions ....... 2,227 (1,340,134)
Net unrealized appreciation on investments................................ -- 78,819
--------------- ---------------
Net assets ............................................................... $ 85,019,266 $ 22,369,482
=============== ===============
Shares of beneficial interest outstanding (unlimited number of shares
authorized, no par value) (Note 4) .................................... 85,017,039 2,296,222
=============== ===============
Net asset value and redemption price per share (Note 1) .................. $ 1.00 $ 9.74
=============== ===============
Maximum offering price per share (Note 1) ................................ $ 1.00 $ 9.94
=============== ===============
<FN>
See accompanying notes to financial statements.
</FN>
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
STATEMENT OF ASSETS AND LIABILITIES
March 31, 1995 (Unaudited)
INTERMEDIATE
TERM
GOVERNMENT
INCOME FUND
---------------
<S> <C>
ASSETS
Investments in securities:
At acquisition cost...................................................................... $ 55,889,736
===============
At amortized cost ....................................................................... $ 55,838,290
===============
At value (Note 1) ....................................................................... $ 55,526,044
Investments in repurchase agreements (Note 1)............................................... 3,477,000
Cash ....................................................................................... 440
Interest receivable ........................................................................ 916,216
Receivable for Fund shares sold............................................................. 298,424
Other assets................................................................................ 6,900
---------------
TOTAL ASSETS ............................................................................ 60,225,024
---------------
LIABILITIES
Payable for Fund shares redeemed ........................................................... 42,438
Dividends payable .......................................................................... 36,022
Payable to affiliates (Note 3) ............................................................. 42,768
Other accrued expenses and liabilities...................................................... 6,433
---------------
TOTAL LIABILITIES ....................................................................... 127,661
---------------
NET ASSETS ................................................................................ $ 60,097,363
===============
Net assets consist of:
Capital shares ............................................................................. $ 63,660,495
Accumulated undistributed net investment income............................................. 24
Accumulated net realized losses from security transactions.................................. (3,250,910)
Net unrealized depreciation on investments ................................................. (312,246)
---------------
Net assets ................................................................................. $ 60,097,363
===============
PRICING OF CLASS A SHARES
Net assets applicable to Class A shares .................................................... $ 59,554,960
===============
Shares of beneficial interest outstanding (unlimited number of shares
authorized, no par value) (Note 4) ....................................................... 5,775,289
===============
Net asset value and redemption price per share (Note 1)..................................... $ 10.31
===============
Maximum offering price per share (Note 1) .................................................. $ 10.52
===============
PRICING OF CLASS C SHARES
Net assets applicable to Class C shares .................................................... $ 542,403
===============
Shares of beneficial interest outstanding (unlimited number of shares
authorized, no par value) (Note 4) ....................................................... 52,606
===============
Net asset value and redemption price per share (Note 1)..................................... $ 10.31
===============
Maximum offering price per share (Note 1) .................................................. $ 10.31
===============
<FN>
See accompanying notes to financial statements.
</FN>
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
STATEMENTS OF OPERATIONS For the
Six Months Ended March 31, 1995 (Unaudited)
ADJUSTABLE
SHORT TERM RATE U.S.
GOVERNMENT GOVERNMENT
INCOME SECURITIES
FUND FUND
--------------- ---------------
<S> <C> <C>
INVESTMENT INCOME
Interest income ....................................................... $ 2,230,337 $ 700,067
--------------- ---------------
EXPENSES
Investment advisory fees (Note 3) ..................................... 202,868 58,616
Shareholder services and transfer agent fees (Note 3) ................. 78,242 8,581
Distribution expenses (Note 3)......................................... 58,681 3,530
Accounting and pricing fees (Note 3)................................... 19,700 21,000
Postage and Supplies................................................... 20,503 5,301
Custodian fees ........................................................ 8,218 10,653
Registration fees...................................................... 9,100 7,970
Professional fees ..................................................... 6,446 5,266
Insurance expense...................................................... 5,135 3,120
Reports to shareholders ............................................... 5,669 915
Trustees' fees and expenses ........................................... 1,569 1,569
Other expenses ........................................................ 2,745 7,676
--------------- ---------------
TOTAL EXPENSES....................................................... 418,876 134,197
Fees waived by the Adviser (Note 3) ................................... -- (46,273)
--------------- ---------------
NET EXPENSES......................................................... 418,876 87,924
--------------- ---------------
NET INVESTMENT INCOME .................................................... 1,811,461 612,143
--------------- ---------------
REALIZED AND UNREALIZED GAINS (LOSSES) ON INVESTMENTS
Net realized gains (losses) from security transactions ................ 2,227 (1,016,313)
Net change in unrealized appreciation/depreciation on investments ..... -- 672,738
--------------- ---------------
NET REALIZED AND UNREALIZED GAINS (LOSSES) ON INVESTMENTS ............... 2,227 (343,575)
--------------- ---------------
NET INCREASE IN NET ASSETS FROM OPERATIONS .............................. $ 1,813,688 $ 268,568
=============== ===============
<FN>
See accompanying notes to financial statements.
</FN>
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
STATEMENT OF OPERATIONS
For the Six Months Ended March 31, 1995 (Unaudited)
INTERMEDIATE
TERM
GOVERNMENT
INCOME FUND
---------------
<S> <C>
INVESTMENT INCOME
Interest income ......................................................................... $ 2,194,877
---------------
EXPENSES
Investment advisory fees (Note 3)........................................................ 148,072
Distribution expenses, Class A (Note 3).................................................. 40,353
Transfer agent fees, Class A (Note 3).................................................... 31,094
Transfer agent fees, Class C (Note 3).................................................... 6,000
Accounting and pricing fees (Note 3)..................................................... 31,500
Postage and supplies..................................................................... 15,394
Registration fees, Common................................................................ 7,050
Registration fees, Class A............................................................... 110
Registration fees, Class C............................................................... 605
Professional fees........................................................................ 6,316
Custodian fees........................................................................... 4,664
Insurance expense........................................................................ 4,420
Reports to shareholders.................................................................. 2,758
Trustees' fees and expenses.............................................................. 1,569
Other expenses.......................................................................... 4,531
---------------
TOTAL EXPENSES......................................................................... 304,436
Class C expenses reimbursed by the Adviser (Note 3)...................................... (4,909)
---------------
NET EXPENSES........................................................................... 299,527
---------------
NET INVESTMENT INCOME ...................................................................... 1,895,350
---------------
REALIZED AND UNREALIZED GAINS (LOSSES) ON INVESTMENTS
Net realized losses from security transactions .......................................... (988,385)
Net change in unrealized appreciation/depreciation on investments ....................... 1,956,375
---------------
NET REALIZED AND UNREALIZED GAINS ON INVESTMENTS .......................................... 967,990
---------------
NET INCREASE IN NET ASSETS FROM OPERATIONS ................................................ $ 2,863,340
===============
<FN>
See accompanying notes to financial statements.
</FN>
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
STATEMENTS OF CHANGES IN NET ASSETS
For the Periods Ended March 31, 1995 and September 30, 1994
SHORT TERM ADJUSTABLE RATE
GOVERNMENT U.S. GOVERNMENT
INCOME FUND SECURITIES FUND
-------------------------------------------------------------------
Six Months Year Six Months Year
Ended Ended Ended Ended
March 31, 1995 Sept. 30, March 31, 1995 Sept. 30,
(Unaudited) 1994 (Unaudited) 1994
------------ ------------- ------------- ------------
<S> <C> <C> <C> <C>
FROM OPERATIONS:
Net investment income........................ $ 1,811,461 $ 2,306,072 $ 612,143 $ 1,873,947
Net realized gains (losses) from
security transactions 2,227 5,891 (1,016,313) (304,327)
Net change in unrealized appreciation/
depreciation on investments ............... -- -- 672,738 (612,863)
------------ ------------- ------------- ------------
Net increase in net assets from operations...... 1,813,688 2,311,963 268,568 956,757
------------ ------------- ------------- ------------
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income .................. (1,811,461) (2,306,072) (613,964) (1,872,126)
From net realized gains from
security transactions .................... (4,105) -- -- (22,389)
------------ ------------- ------------- ------------
Decrease in net assets from
distributions to shareholders ............... (1,815,566) (2,306,072) (613,964) (1,894,515)
------------ ------------- ------------- ------------
FROM FUND SHARE TRANSACTIONS (Note 4):
Proceeds from shares sold ................... 184,862,659 417,855,148 12,415,554 96,127,400
Net asset value of shares issued in
reinvestment of distributions
to shareholders ......................... 1,638,418 2,046,254 531,659 1,544,607
Payments for shares redeemed................. (191,187,858) (427,161,727) (27,804,263) (83,562,236)
------------ ------------- ------------- ------------
Increase (decrease) in net assets from
Fund share transactions...................... (4,686,781) (7,260,325) (14,857,050) 14,109,771
------------ ------------- ------------- ------------
TOTAL INCREASE (DECREASE)IN NET ASSETS ......... (4,688,659) (7,254,434) (15,202,446) 13,172,013
NET ASSETS:
Beginning of period ......................... 89,707,925 96,962,359 37,571,928 24,399,915
------------ ------------- ------------- ------------
End of period................................ $ 85,019,266 $ 89,707,925 $ 22,369,482 $ 37,571,928
============ ============= ============= ============
<FN>
See accompanying notes to financial statements.
</FN>
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
STATEMENTS OF CHANGES IN NET
ASSETS For the Periods Ended March 31, 1995 and September 30, 1994
INTERMEDIATE TERM
GOVERNMENT INCOME FUND
--------------------------------
Six Months
Ended Year
March 31, 1995 Ended
(Unaudited) Sept. 30, 1994
--------------- ---------------
<S> <C> <C>
FROM OPERATIONS:
Net investment income ................................................. $ 1,895,350 $ 4,062,227
Net realized losses from security transactions ........................ (988,385) (1,877,102)
Net change in unrealized appreciation/depreciation on investments...... 1,956,375 (7,766,054)
--------------- ---------------
Net increase (decrease) in net assets from operations .................... 2,863,340 (5,580,929)
--------------- ---------------
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income, Class A ................................... (1,881,815) (4,050,330)
From net investment income, Class C ................................... (13,511) (11,897)
From net realized gains from security transactions, Class A .......... -- (1,012,050)
--------------- ---------------
Decrease in net assets from distributions to shareholders ................ (1,895,326) (5,074,277)
--------------- ---------------
FROM FUND SHARE TRANSACTIONS (Note 4):
CLASS A
Proceeds from shares sold ............................................. 5,084,268 19,529,582
Net asset value of shares issued in reinvestment of
distributions to shareholders ...................................... 1,576,233 4,360,921
Payments for shares redeemed .......................................... (12,460,031) (38,538,270)
--------------- ---------------
Decrease in net assets from Class A share transactions ................... (5,799,530) (14,647,767)
--------------- ---------------
CLASS C
Proceeds from shares sold ............................................. 248,040 792,585
Net asset value of shares issued in reinvestment of
distributions to shareholders ...................................... 13,263 12,021
Payments for shares redeemed........................................... (235,507) (264,642)
--------------- ---------------
Increase in net assets from Class C share transactions ................... 25,796 539,964
--------------- ---------------
TOTAL DECREASE IN NET ASSETS ............................................ (4,805,720) (24,763,009)
NET ASSETS:
Beginning of year...................................................... 64,903,083 89,666,092
--------------- ---------------
End of year............................................................ $ 60,097,363 $ 64,903,083
=============== ===============
<FN>
See accompanying notes to financial statements.
</FN>
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
SHORT TERM GOVERNMENT INCOME FUND
FINANCIAL HIGHLIGHTS
Per Share Data for a Share Outstanding Throughout Each Year
Six Months
Ended
Mar. 31, Year Ended September 30,
1995 --------------------------------------------------------
(Unaudited) 1994 1993 1992 1991 1990(A)
---------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Net asset value at beginning of period........... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
--------- --------- --------- --------- ---------- ---------
Income from investment operations:
Net investment income ........................ 0.021 0.027 0.022 0.035 0.059 0.073
--------- --------- --------- --------- ---------- ---------
Total from investment operations ................ 0.021 0.027 0.022 0.035 0.059 0.073
--------- --------- --------- --------- ---------- ---------
Less distributions:
Dividends from net investment income.......... (0.021) (0.027) (0.022) (0.035) (0.059) (0.073)
--------- --------- --------- --------- ---------- ---------
Total distributions.............................. (0.021) (0.027) (0.022) (0.035) (0.059) (0.073)
--------- --------- --------- --------- ---------- ---------
Net asset value at end of period................. $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
========= ========= ========= ========= ========== =========
Total return .................................... 4.35%(B) 2.72% 2.24% 3.55% 6.06% 7.50%
========= ========= ========= ========= ========== =========
Net assets at end of period (000's) ............. $85,019 $ 89,708 $ 96,962 $ 91,519 $101,535 $101,835
========= ========= ========= ========= ========== =========
Ratio of expenses to average net assets ......... 0.99%(B) 0.99% 0.99% 0.99% 0.99% 0.99%
Ratio of net investment income
to average net assets ........................ 4.28%(B) 2.69% 2.22% 3.51% 5.90% 7.25%
<FN>
(A)All per share data has been restated to reflect the effect of a 10 for 1
share split on February 28, 1990.
(B)Annualized.
See accompanying notes to financial statements.
</FN>
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
ADJUSTABLE RATE U.S. GOVERNMENT SECURITIES FUND
FINANCIAL HIGHLIGHTS
Per Share Data for a Share Outstanding Throughout Each Period
Six Months Year Period
Ended Ended Ended
March 31, 1995 Sept. 30, Sept. 30,
(Unaudited) 1994 1993(A)
--------------- --------------- ---------------
<S> <C> <C> <C>
Net asset value at beginning of period ................... $ 9.82 $ 10.01 $ 10.00
--------------- --------------- ---------------
Income from investment operations:
Net investment income ................................. 0.26 0.39 0.28
Net realized and unrealized gains (losses)
on investments ...................................... (0.08) (0.18) 0.01
--------------- --------------- ---------------
Total from investment operations ......................... 0.18 0.21 0.29
--------------- --------------- ---------------
Less distributions:
Dividends from net investment income................... (0.26) (0.39) (0.28)
Distributions from net realized gains.................. -- (0.01) --
--------------- --------------- ---------------
Total distributions ...................................... (0.26) (0.40) (0.28)
--------------- --------------- ---------------
Net asset value at end of period ......................... $ 9.74 $ 9.82 $ 10.01
=============== =============== ===============
Total return(B) .......................................... 3.69%(D) 2.09% 4.56%(D)
=============== =============== ===============
Net assets at end of period (000's) ...................... $ 22,369 $ 37,572 $ 24,400
=============== =============== ===============
Ratios net of fees waived and expenses reimbursed
by the Adviser(C):
Ratio of expenses to average net assets ............. 0.75%(D) 0.68% 0.22%(D)
Ratio of net investment income to average net assets 5.24%(D) 3.91% 4.17%(D)
Ratios assuming no waiver of fees or reimbursement
of expenses by the Adviser:
Ratio of expenses to average net assets ............. 1.15%(D) 0.78% 1.18%(D)
Ratio of net investment income to average net assets. 4.84%(D) 3.81% 3.20%(D)
Portfolio turnover rate .................................. 210%(D) 81% 170%(D)
<FN>
(A)Represents the period from the initial public offering of shares (February
10, 1993) through September 30, 1993.
(B)The total returns shown do not include the effect of applicable front-end
sales loads.
(C)The Adviser has periodically absorbed expenses of the Fund through waiver of
the investment advisory fee and reimbursement of other operating expenses
(Note 3).
(D)Annualized.
See accompanying notes to financial statements.
</FN>
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
INTERMEDIATE TERM GOVERNMENT INCOME FUND
FINANCIAL HIGHLIGHTS
Per Share Data for a Share Outstanding Throughout Each Period
Class A Class C
---------------------------------------------------------- --------------------
Six Six
Months Months
Ended Ended Period
Mar. 31, Year Ended September 30, Mar. 31, Ended
1995 ---------------------------------------------- 1995 Sept. 30
(Unaudited) 1994 1993 1992 1991 1990 (Unaudited) 1994(A)
--------- ------- ------- ------- ------- ------- ---------- -------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Net asset value at beginning of period......... $10.14 $11.59 $11.10 $10.45 $ 9.85 $10.09 $10.14 $11.27
------- ------- ------- ------- ------- ------- ------- -------
Income from investment operations:
Net investment income........................ 0.32 0.56 0.60 0.68 0.75 0.76 0.29 0.34
Net realized and unrealized gains (losses)
on investments.............................. 0.17 (1.32) 0.49 0.65 0.60 (0.24) 0.17 (1.13)
------- ------- ------- ------- ------- ------- ------- -------
Total from investment operations............... 0.49 (0.76) 1.09 1.33 1.35 0.52 0.46 (0.79)
------- ------- ------- ------- ------- ------- ------- -------
Less distributions:
Dividends from net investment income......... (0.32) (0.56) (0.60) (0.68) (0.75) (0.76) (0.29) (0.34)
Distributions from net realized gains........ -- (0.13) -- -- -- -- -- --
------- ------- ------- ------- ------- ------- ------- -------
Total distributions............................ (0.32) (0.69) (0.60) (0.68) (0.75) (0.76) (0.29) (0.34)
------- ------- ------- ------- ------- ------- ------- -------
Net asset value at end of period............... $10.31 $10.14 $11.59 $ 11.10 $10.45 $ 9.85 $10.31 $10.14
======= ======= ======= ======= ======= ======= ======= =======
Total return(B) ............................... 9.83%(D) (6.76%) 10.15% 13.27% 14.19% 5.31% 9.30%(D) (10.38%)(D)
------- ------- ------- ------- ------- ------- ------- -------
Net assets at end of period (000's)............ $59,555 $64,395 $89,666 $59,290 $40,896 $37,800 $ 542 $ 508
======= ======= ======= ======= ======= ======= ======= =======
Ratio of expenses to average net assets(C) ..... 0.99%(D) 0.99% 0.99% 1.00% 1.00% 1.02% 1.47%(D) 1.46%(D)
Ratio of net investment income
to average net assets(C) ..................... 5.06%(D) 5.17% 5.31% 6.40% 7.39% 7.57% 4.48%(D) 4.89%(D)
Portfolio turnover rate......................... 89%(D) 236% 255% 76% 74% 92% 89%(D) 236%(D)
<FN>
(A)For Class C shares, represents the period from initial public offering of
shares (February 1, 1994) through September 30, 1994.
(B)The total returns shown do not include the effect of applicable front-end
sales loads.
(C)In order to reduce the operating expenses of Class C shares, the Adviser
reimbursed the Class C shares for operating expenses during the periods ended
March 31, 1995 and September 30, 1994. Had there been no reimbursement of
expenses, the ratio of expenses to average net assets and the ratio of net
investment income to average net assets would have been 3.52% and 2.43%,
respectively, for the period ended March 31, 1995 and 2.41% and 3.95%,
respectively, for the period ended September 30, 1994 (Note 3).
(D)Annualized.
See accompanying notes to financial statements.
</FN>
</TABLE>
<PAGE>
NOTES TO FINANCIAL STATEMENTS
March 31, 1995 (Unaudited)
1. Significant Accounting Policies
The Short Term Government Income Fund, the Intermediate Term Government Income
Fund, and the Adjustable Rate U.S. Government Securities Fund (collectively, the
Funds) are each a series of shares of Midwest Trust (the Trust). The Trust
(formerly Midwest Income Trust) is registered under the Investment Company Act
of 1940, as amended, as a diversified, open-end management investment company.
The Trust was organized as a Massachusetts business trust on December 7, 1980.
The Declaration of Trust, as amended, permits the Trustees to issue an unlimited
number of shares of each Fund.
The Intermediate Term Government Income Fund offers two classes of shares: Class
A shares (sold subject to a maximum front-end sales load of 2% and a
distribution fee of up to .25% of average daily net assets) and Class C shares
(sold subject to a maximum contingent deferred sales load of 1% if redeemed
within a one-year period from purchase and a distribution fee of up to 1% of
average daily net assets.) Each Class A and Class C share of the Fund represents
identical interests in the Fund's investment portfolio and has the same rights,
except that (i) Class C shares bear the expenses of higher distribution fees,
which will cause Class C shares to have a higher expense ratio and to pay lower
dividends than Class A shares; (ii) certain other class specific expenses will
be borne solely by the class to which such expenses are attributable; and (iii)
each class has exclusive voting rights with respect to matters relating to its
own distribution arrangements.
The following is a summary of the Funds' significant accounting policies:
Securities valuation -- Short Term Government Income Fund securities are valued
on the amortized cost basis, which approximates market value. This involves
initially valuing a security at its original cost and thereafter assuming a
constant amortization to maturity of any discount or premium. This method of
valuation is expected to enable the Fund to maintain a constant net asset value
per share. Intermediate Term Government Income Fund securities and Adjustable
Rate U.S. Government Securities Fund securities are valued at their most recent
bid prices as obtained from one or more of the major market makers for such
securities.
Repurchase agreements -- Repurchase agreements, which are collateralized by U.S.
Government obligations, are valued at cost which, together with accrued
interest, approximates market. Collateral for repurchase agreements is held in
safekeeping in the customer-only account of the Funds' custodian, at the Federal
Reserve Bank of Cleveland. At the time each Fund enters into a repurchase
agreement, the seller agrees that the value of the underlying securities,
including accrued interest, will at all times be equal to or exceed the face
amount of the repurchase agreement. In addition, each Fund actively monitors and
seeks additional collateral, as needed. In the event of a bankruptcy or other
default of the seller of a repurchase agreement, a Fund could experience both
delays in liquidating the underlying security and losses. These losses would
equal the face amount of the repurchase agreement and accrued interest, net of
any proceeds received in liquidation of the underlying securities. To minimize
the possibility of loss, each Fund enters into repurchase agreements only with
institutions deemed to be creditworthy by the Adviser, including banks having
assets in excess of $10 billion and primary U.S. Government securities dealers.
Refer to each Fund's Portfolio of Investments for the face amount of repurchase
agreements and accrued interest as of March 31, 1995.
Share valuation -- The net asset value per share of each Fund is calculated
daily by dividing the total value of that Fund's assets, less liabilities, by
the number of shares outstanding. The maximum offering price per share of each
of the Short Term Government Income Fund and Class C shares of the Intermediate
Term Government Income Fund is equal to the net asset value per share. The
maximum offering price per share of Class A shares of the Intermediate Term
Government Income Fund and shares of the Adjustable Rate U.S. Government
Securities Fund is equal to the net asset value per share plus a sales load of
2.04% of the net asset value (or 2% of the offering price). The redemption price
per share of each Fund is equal to the net asset value per share.
Investment income and distributions to shareholders -- Interest income is
accrued as earned. Dividends arising from net investment income are declared
daily and paid on the last business day of each month to shareholders of each
Fund. Net realized short-term capital gains, if any, may be distributed during
the year and net realized long-term capital gains, if any, are distributed at
least once each year.
<PAGE>
Allocations between classes -- Investment income earned by the Intermediate Term
Government Income Fund is allocated daily to each class of shares based on the
percentage of the net asset value of settled shares of such class to the total
of the net asset value of settled shares of both classes of shares. Realized
capital gains and losses and unrealized appreciation and depreciation are
allocated daily to each class of shares based upon its proportionate share of
total net assets of the Fund. Class specific expenses are charged directly to
the class incurring the expense. Joint expenses which are not attributable to a
specific class are allocated daily to each class based upon its proportionate
share of total net assets of the Fund.
Security transactions -- Security transactions are accounted for on the trade
date. Securities sold are valued on a specific identification basis.
Federal income tax -- It is each Fund's policy to comply with the special
provisions of the Internal Revenue Code available to regulated investment
companies. As provided therein, in any fiscal year in which a Fund so qualifies,
and distributes at least 90% of its taxable net income, the Fund (but not the
shareholders) will be relieved of federal income tax on the income distributed.
Accordingly, no provision for income taxes has been made.
In order to avoid imposition of the excise tax applicable to regulated
investment companies, it is also each Fund's intention to declare as dividends
in each calendar year at least 98% of its net investment income (earned during
the calendar year) and 98% of its net realized capital gains (earned during the
twelve months ended October 31) plus undistributed amounts from prior years.
The following information is based upon federal income tax cost of portfolio
investments (excluding repurchase agreements) of the Intermediate Term
Government Income Fund and the Adjustable Rate U.S. Government Securities Fund
as of March 31,1995:
<TABLE>
Intermediate Adjustable Rate
Term Government U.S. Government
Income Fund Securities Fund
--------------- ---------------
<S> <C> <C>
Gross unrealized appreciation............................................. $ 786,104 $ 88,150
Gross unrealized depreciation............................................. (1,098,350) (9,331)
--------------- ---------------
Net unrealized depreciation. ....................................... $ (312,246) $ 78,819
=============== ===============
Federal income tax cost................................................... $ 55,838,290 $ 21,332,038
=============== ===============
</TABLE>
As of September 30, 1994, the Intermediate Term Government Income Fund and the
Adjustable Rate U.S. Government Securities Fund had capital loss carryforwards
for federal income tax purposes of $1,291,793 and $323,821, respectively, none
of which expire prior to September 30, 2002. The difference between financial
reporting and tax capital loss amounts for the Intermediate Term Government
Income Fund is due to certain timing differences in recognizing capital losses
under generally accepted accounting principles and tax rules. These capital loss
carryforwards may be utilized in future years to offset net realized capital
gains prior to distributing such gains to shareholders.
2. Investment Transactions
During the six months ended March 31, 1995, purchases and proceeds from sales
and maturities of investment securities, other than short-term investments,
amounted to $24,578,990 and $30,510,880, respectively, for the Intermediate Term
Government Income Fund and $24,289,741 and $40,026,082, respectively, for the
Adjustable Rate U.S. Government Securities Fund.
3. Transactions with Affiliates
The President of the Trust is the controlling shareholder of Leshner Financial,
Inc., whose subsidiaries include Midwest Group Financial Services, Inc. (the
Adviser), the Trust's investment manager and principal underwriter, and MGF
Service Corp. (MGF), the shareholder servicing and transfer agent and accounting
and pricing agent for the Trust.
MANAGEMENT AND SUBADVISORY AGREEMENTS
Each Fund's investments are managed by the Adviser under the terms of a
Management Agreement. Under the Management Agreement, each Fund pays the Adviser
a fee, which is computed and accrued daily and paid monthly, at an annual rate
of .5% of its respective average daily net assets up to $50,000,000; .45% of
such net assets from $50,000,000 to $150,000,000; .4% of such net assets from
$150,000,000 to $250,000,000; and .375% of such net assets in excess of
$250,000,000.
<PAGE>
Under a Subadvisory Agreement, the Adviser has retained Hanover Capital
Advisors, Inc. (Hanover) to regularly review the Adjustable Rate U.S. Government
Securities Fund's portfolio holdings, recommend securities to be purchased for
the Fund and confer with the Adviser regarding the credit and maturity
guidelines for investments in the Fund's portfolio. The Adviser pays Hanover a
fee equal to an annual rate of .25% of the average value of the Adjustable Rate
U.S. Government Securities Fund's daily net assets up to $50,000,000; .225% of
such assets from $50,000,000 to $150,000,000; .2% of such assets from
$150,000,000 to $250,000,000; and .1875% of such assets in excess of
$250,000,000. The fee paid to Hanover is subject to reduction in the event the
Adviser waives or reimburses any portion of its advisory fee in order to reduce
the operating expenses of the Adjustable Rate U.S. Government Securities Fund.
States in which shares of the Trust are offered may impose an expense limitation
based upon net assets. The Adviser has agreed to reimburse each Fund yearly for
expenses which exceed the most restrictive applicable expense limitation of any
state. No reimbursement was required from the Adviser with respect to any Fund
for the six months ended March 31, 1995. In order to reduce the operating
expenses of the Adjustable Rate U.S. Government Securities Fund, the Adviser
voluntarily waived $46,273 of its advisory fees during the six months ended
March 31, 1995. In order to reduce the operating expenses of the Intermediate
Term Government Income Fund's Class C shares, the Adviser voluntarily reimbursed
the Fund for $4,909 of such operating expenses during the six months ended March
31, 1995.
TRANSFER AGENT AND SHAREHOLDER SERVICE AGREEMENT
Under the terms of the Transfer, Dividend Disbursing, Shareholder Service and
Plan Agency Agreement between the Trust and MGF, MGF maintains the records of
each shareholder's account, answers shareholders' inquiries concerning their
accounts, processes purchases and redemptions of each Fund's shares, acts as
dividend and distribution disbursing agent and performs other shareholder
service functions. Under the terms of the Agreement, MGF receives for its
services a fee, payable monthly, at an annual rate of $25.00 per shareholder
account from the Short Term Government Income Fund and $21.00 per shareholder
account from each of the Intermediate Term Government Income Fund and the
Adjustable Rate U.S. Government Securities Fund, subject to a $1,000 minimum
monthly fee for each Fund, or class of Fund, as applicable. In addition, each
Fund pays out-of-pocket expenses including, but not limited to, postage and
supplies.
ACCOUNTING SERVICES AGREEMENT
Under the terms of the Accounting Services Agreement between the Trust and MGF,
MGF calculates the daily net asset value per share and maintains the financial
books and records of each Fund. For these services, MGF receives a monthly fee
from each Fund. The monthly fee, based on current asset levels, is $3,200 per
month for the Short Term Government Income Fund, $5,250 per month for the
Intermediate Term Government Income Fund and $3,500 per month for the Adjustable
Rate U.S. Government Securities Fund.
UNDERWRITING AGREEMENT
Under the terms of the Underwriting Agreement, the Adviser and affiliates earned
$1,268 and $1,176 from underwriting and broker commissions on sales of shares of
the Intermediate Term Government Income Fund and the Adjustable Rate U.S.
Government Securities Fund, respectively, for the six months ended March 31,
1995.
PLANS OF DISTRIBUTION
The Short Term Government Income Fund, the Adjustable Rate U.S. Government
Securities Fund and the Intermediate Term Government Income Fund (on behalf of
its Class A shares) have each adopted a plan of distribution (Class A Plan)
under which such shares may directly incur or reimburse the Adviser for expenses
related to the promotion and sale of shares. The annual limitation for payment
of such expenses under the Class A Plan is .35% of average daily net assets.
The Intermediate Term Government Income Fund also has adopted a plan of
distribution (Class C Plan) under which its Class C shares may directly incur or
reimburse the Adviser for expenses related to the promotion and sale of such
shares. The annual limitation for payment of such expenses under the Class C
Plan is 1% of the Intermediate Term Government Income Fund's average daily net
assets attributable to Class C shares.
<PAGE>
4. Fund Share Transactions
Proceeds from shares sold and payments for shares redeemed as shown in the
Statements of Changes in Net Assets are the result of the following share
transactions for the periods ended March 31, 1995 and September 30, 1994
<TABLE>
Intermediate Term Government Income Fund
-----------------------------------------------------------
Class A Class C
-----------------------------------------------------------
Six Months Six Months
Ended Year Ended Period
March 31, Ended March 31, Ended
1995 Sept. 30, 1995 Sept. 30,
(Unaudited) 1994 (Unaudited) 1994(A)
------------ ------------- ------------- ------------
<S> <C> <C> <C> <C>
Shares sold..................................... 501,829 1,766,194 24,656 73,938
Shares issued in reinvestment of
distributions to shareholders................ 155,912 402,072 1,312 1,160
Shares redeemed................................. (1,235,219) (3,549,832) (23,491) (24,969)
------------ ------------- ------------- ------------
Net increase (decrease) in shares outstanding... (577,478) (1,381,566) 2,477 50,129
Shares outstanding, beginning of period......... 6,352,767 7,734,333 50,129 --
------------ ------------- ------------- ------------
Shares outstanding, end of period............... 5,775,289 6,352,767 52,606 50,129
============ ============= ============= ============
</TABLE>
<TABLE>
Adjustable Rate U.S.
Government Securities Fund
-------------------------------
Six Months Year
Ended Ended
March 31, 1995 Sept. 30,
(Unaudited) 1994
--------------- ---------------
<S> <C> <C>
Shares sold............................................................... 1,275,974 9,629,743
Shares issued in reinvestment of distributions to shareholders............ 54,775 155,277
Shares redeemed .......................................................... (2,861,337) (8,395,265)
--------------- ---------------
Net increase (decrease) in shares outstanding............................. (1,530,588) 1,389,755
Shares outstanding, beginning of period................................... 3,826,810 2,437,055
--------------- ---------------
Shares outstanding, end of period......................................... 2,296,222 3,826,810
=============== ===============
<FN>
(A)For Class C shares, represents the period from the initial public offering of
shares (February 1, 1994) through September 30, 1994.
</FN>
</TABLE>
Share transactions for the Short Term Government Income Fund are identical to
the dollar value of those transactions as shown in the Statements of Changes in
Net Assets.
<PAGE>
<TABLE>
<CAPTION>
SHORT TERM GOVERNMENT INCOME FUND
PORTFOLIO OF INVESTMENTS
March 31, 1995 (Unaudited)
Par Yield To Market
Value U.S. TREASURY OBLIGATIONS-54.6% Maturity(1) Value
- - -------------- ------------------------------- ------------- -------------
<C> <S> <C> <C>
$ 5,000,000 U.S. Treasury Bills, 4/06/95.................................... 5.807% $ 4,996,049
3,000,000 U.S. Treasury Notes, 8.375%, 04/15/95........................... 5.826 3,002,825
3,000,000 U.S. Treasury Bills, 4/20/95.................................... 5.508 2,991,513
7,000,000 U.S. Treasury Bills, 5/18/95................................... 5.933 6,947,360
5,000,000 U.S. Treasury Bills, 6/15/95................................... 6.502 4,934,427
3,000,000 U.S. Treasury Bills, 6/22/95................................... 5.847 2,960,708
3,000,000 U.S. Treasury Bills, 7/06/95................................... 5.905 2,953,680
5,000,000 U.S. Treasury Bills, 7/13/95................................... 5.878 4,917,528
5,000,000 U.S. Treasury Bills, 8/3/95.................................... 6.321 4,894,514
3,000,000 U.S. Treasury Bills, 8/17/95................................... 5.879 2,933,933
5,000,000 U.S. Treasury Bills, 8/31/95................................... 6.047 4,875,867
- - -------------- -------------
$ 47,000,000 TOTAL U.S. TREASURY OBLIGATIONS
============== (Amortized Cost $46,408,404)................................. $ 46,408,404
-------------
</TABLE>
<TABLE>
Face Market
Amount REPURCHASE AGREEMENTS(2)-45.4% Value
- - -------------- ------------------------------ -------------
<C> <S> <C>
$ 5,818,000 Harris-Nesbitt Thomson Securities, Inc., 5.90%, dated 3/31/95,
due 4/3/95, repurchase proceeds $5,820,861................................... $ 5,818,000
7,500,000 Daiwa Securities America, Inc., 5.95%, dated 3/27/95,
due 4/3/95, repurchase proceeds $7,508,677................................... 7,500,000
12,600,000 Fuji Securities, Inc., 6.05%, dated 3/31/95,
due 4/3/95, repurchase proceeds $12,606,353.................................. 12,600,000
12,600,000 Dean Witter Reynolds, Inc., 6.05%, dated 3/31/95,
due 4/3/95, repurchase proceeds $12,606,353.................................. 12,600,000
- - -------------- -------------
$ 38,518,000 TOTAL REPURCHASE AGREEMENTS ................................................... $38,518,000
============== -------------
TOTAL INVESTMENTS AND REPURCHASE AGREEMENTS AT VALUE - 100% ................... $84,926,404
=============
<FN>
(1)Yield to maturity at date of purchase.
(2)Repurchase agreements are fully collateralized by U.S. Government obilgations.
See accompanying notes to financial statements.
</FN>
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
ADJUSTABLE RATE U.S. GOVERNMENT SECURITIES FUND
PORTFOLIO OF INVESTMENTS
March 31, 1995 (Unaudited)
Par Market
Value ADJUSTABLE RATE U.S. GOVERNMENT AGENCY ISSUES-94.0% Value
- - -------------- --------------------------------------------------- -------------
<C> <S> <C>
$ 1,819,203 Federal National Mortgage Assoc. #70907, 6.97%, 3/1/18......................... $ 1,845,982
1,785,411 Federal Home Loan Mortgage Corp. #605793, 6.82%, 5/1/18........................ 1,806,603
2,561,163 Federal National Mortgage Assoc. #70010, 6.89%, 6/1/18......................... 2,610,132
4,029,306 Federal National Mortgage Assoc. #70614, 6.52%, 10/1/18........................ 4,108,119
1,072,106 Federal Home Loan Mortgage Corp. #846041, 6.92%, 7/1/21........................ 1,093,688
2,900,628 Federal Home Loan Mortgage Corp. #846013, 7.22%, 6/1/22........................ 2,987,966
105,584 Government National Mortgage Assoc. #8182, 6,75%,4/20/23....................... 107,432
3,920,000 Federal Home Loan Mortgage Corp. #846071, 6.86%, 2/1/25........................ 3,999,027
2,793,715 Federal National Mortgage Assoc. #70243, 7.19%, 3/1/28......................... 2,851,908
- - -------------- -------------
$ 20,987,116 TOTAL ADJUSTABLE RATE U.S. GOVERNMENT AGENCY ISSUES
============== (Amortized Cost $21,332,038)................................................. $21,410,857
-------------
</TABLE>
<TABLE>
Face Market
Amount REPURCHASE AGREEMENTS(1)-6.0% Value
- - -------------- ----------------------------- -------------
<C> <S> <C>
$ 1,357,000 Harris-Nesbitt Thomson Securities, Inc., 5.85%, dated 3/31/95,
due 4/3/95, repurchase proceeds $1,357,662................................... $ 1,357,000
- - -------------- -------------
$ 1,357,000 TOTAL REPURCHASE AGREEMENTS ................................................... $ 1,357,000
============== -------------
TOTAL INVESTMENTS AND REPURCHASE AGREEMENTS AT VALUE-100% .................... $ 22,767,857
=============
<FN>
(1)Repurchase agreements are fully collateralized by U.S. Government obligations.
See accompanying notes to financial statements.
</FN>
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
INTERMEDIATE TERM GOVERNMENT INCOME FUND
PORTFOLIO OF INVESTMENTS
March 31, 1995 (Unaudited)
Par Market
Value INVESTMENTS-94.1% Value
- - -------------- ----------------------------- -------------
<C> <S> <C>
U.S. TREASURY OBLIGATIONS-32.1%
$ 4,000,000 U.S. Treasury Bills, 9/28/95................................................... $ 3,883,904
2,000,000 U.S. Treasury Notes, 6.50%, 8/15/97............................................ 1,985,000
1,000,000 U.S. Treasury Notes, 7.875%, 11/15/99.......................................... 1,030,625
1,000,000 U.S. Treasury Notes, 8.50%, 11/15/00........................................... 1,063,750
1,000,000 U.S. Treasury Notes, 7.75%, 12/15/01........................................... 1,029,062
1,000,000 U.S. Treasury Notes, 8.00%, 5/15/01............................................ 1,041,250
3,000,000 U.S. Treasury Notes, 7.875%, 8/15/01........................................... 3,110,625
2,000,000 U.S. Treasury Notes, 7.50%, 11/15/01........................................... 2,036,250
3,000,000 U.S. Treasury Notes, 5.75%, 8/15/03............................................ 2,722,500
1,000,000 U.S. Treasury Bonds, 8.25%, 5/15/05............................................ 1,035,000
- - -------------- -------------
$ 19,000,000 TOTAL U.S. TREASURY OBLIGATIONS
- - -------------- (Amortized Cost $19,056,647)................................................. $18,937,966
-------------
U.S. GOVERNMENT AGENCY ISSUES-62.0%
$ 2,600,000 Federal National Mortgage Assoc. Notes, 5.38%, 1/6/99.......................... $ 2,446,392
3,000,000 Federal Home Loan Bank Notes, 8.45%, 7/26/99................................... 3,133,064
3,000,000 Federal Home Loan Bank Notes, 8.375%, 10/25/99................................. 3,122,984
2,000,000 Federal Home Loan Mortgage Corp. Notes, 5.69%, 1/24/01......................... 1,823,898
2,000,000 Federal Home Loan Mortgage Corp. Notes, 7.265%, 6/22/01........................ 1,960,184
1,000,000 Student Loan Marketing Assoc. Medium Term Notes, 7.50%, 7/2/01................. 1,005,050
3,000,000 Federal Home Loan Bank Notes, 7.31%, 7/6/01.................................... 2,990,607
3,000,000 Federal Home Loan Bank Medium Term Notes, 8.43%, 8/1/01........................ 3,152,849
1,410,000 Federal National Mortgage Assoc. Strips, 3/9/02................................ 1,240,575
2,000,000 Federal National Mortgage Assoc. Notes, 7.55%, 4/22/02......................... 2,019,396
1,000,000 Federal National Mortgage Assoc. Notes, 7.00%, 8/12/02......................... 959,475
1,000,000 Federal Home Loan Mortgage Corp. Notes, 7.23%, 12/17/02........................ 968,399
1,000,000 Federal National Mortgage Assoc. Medium Term Notes, 6.72%, 2/25/03............. 934,100
1,000,000 Federal Home Loan Mortgage Corp. Notes, 6.60%, 3/25/03......................... 931,925
1,000,000 Federal National Mortgage Assoc. Notes, 6.90%, 3/10/04......................... 944,616
2,000,000 Federal Home Loan Mortgage Corp. Notes, 7.05%, 3/24/04......................... 1,897,008
2,000,000 Federal Home Loan Mortgage Corp. Notes, 8.53%, 11/18/04........................ 2,075,340
2,000,000 Federal Farm Credit Bank Medium Term Notes, 6.74%, 2/25/08..................... 1,838,000
3,000,000 Federal Home Loan Mortgage Corp. Notes, 8.57%, 10/26/09........................ 3,144,216
- - -------------- -------------
$ 37,010,000 TOTAL U.S. GOVERNMENT AGENCY ISSUES ........................................... $ 36,588,078
- - -------------- (Amortized Cost $36,781,643) -------------
$ 56,010,000 TOTAL INVESTMENTS AT VALUE .................................................... $ 55,526,044
============== (Amortized Cost $55,838,290) -------------
</TABLE>
<TABLE>
Face Market
Amount REPURCHASE AGREEMENTS(1)-5.9% Value
- - -------------- ----------------------------- -------------
<C> <S> <C>
$ 3,477,000 Harris-Nesbitt Thomson Securities, Inc., 5.85%, dated 3/31/95,
due 4/3/95, repurchase proceeds $3,478,695................................... $ 3,477,000
- - -------------- -------------
$ 3,477,000 TOTAL REPURCHASE AGREEMENTS.................................................... $ 3,477,000
============== -------------
TOTAL INVESTMENTS AND REPURCHASE AGREEMENTS AT VALUE-100% ..................... $ 59,003,044
=============
<FN>
(1)Repurchase agreements are fully collateralized by U.S. Government obligations.
See accompanying notes to financial statements.
</FN>
</TABLE>
<PAGE>
Midwest Trust
Institutional Government Income Fund
Semi-Annual Report
March 31, 1995
<PAGE>
<TABLE>
<CAPTION>
INSTITUTIONAL GOVERNMENT INCOME FUND
STATEMENT OF ASSETS AND LIABILITIES
March 31, 1995 (Unaudited)
<S> <C>
ASSETS
Investments in securities:
At acquisition cost....................................................................... $ 37,883,223
================
At amortized cost......................................................................... $ 38,102,991
================
At value (Note 1)......................................................................... $ 38,102,991
Investments in repurchase agreements (Note 1)................................................ 15,290,000
Cash ........................................................................................ 52
Interest receivable.......................................................................... 59,485
Other assets................................................................................. 21,169
----------------
TOTAL ASSETS.............................................................................. 53,473,697
----------------
LIABILITIES
Dividends payable............................................................................ 33,290
Payable to affiliates (Note 2)............................................................... 12,770
Other accrued expenses and liabilities....................................................... 3,515
----------------
TOTAL LIABILITIES ........................................................................ 49,575
----------------
NET ASSETS ................................................................................. $ 53,424,122
================
Net assets consist of:
Capital shares............................................................................... $ 53,454,224
Accumulated net realized losses from security transactions .................................. (30,102)
----------------
Net assets .................................................................................. $ 53,424,122
================
Shares of beneficial interest outstanding (unlimited number of shares
authorized, no par value) ................................................................ 53,454,224
================
Net asset value, offering price and redemption price per share (Note 1) ..................... $ 1.00
================
<FN>
See accompanying notes to financial statements.
</FN>
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
INSTITUTIONAL GOVERNMENT INCOME FUND
STATEMENT OF OPERATIONS
For the Six Months Ended March 31, 1995 (Unaudited)
<S> <C>
INVESTMENT INCOME
Interest income .......................................................................... $ 1,178,689
----------------
EXPENSES
Investment advisory fees (Note 2) ........................................................ 43,460
Accounting and pricing fees (Note 2)...................................................... 19,200
Shareholder services and transfer agent fees (Note 2) .................................... 6,000
Custodian fees ........................................................................... 4,725
Professional fees ........................................................................ 4,496
Insurance expense......................................................................... 3,315
Postage and supplies...................................................................... 2,965
Registration fees......................................................................... 2,588
Trustees' fees and expenses .............................................................. 1,569
Distribution expenses (Note 2)............................................................ 891
Other expenses ........................................................................... 2,709
----------------
TOTAL EXPENSES.......................................................................... 91,918
Less fees waived by the Adviser (Note 2) ................................................. (5,000)
----------------
NET EXPENSES............................................................................ 86,918
----------------
NET INVESTMENT INCOME ....................................................................... 1,091,771
----------------
NET REALIZED GAINS FROM SECURITY TRANSACTIONS .............................................. 3,182
----------------
NET INCREASE IN NET ASSETS FROM OPERATIONS ................................................. $ 1,094,953
================
<FN>
See accompanying notes to financial statements.
</FN>
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
INSTITUTIONAL GOVERNMENT INCOME FUND
STATEMENTS OF CHANGES IN NET ASSETS
For the Periods Ended March 31, 1995 and September 30, 1994
Six Months
Ended Year
Mar. 31, 1995 Ended
(Unaudited) Sept. 30, 1994
----------------- -------------------
<S> <C> <C>
FROM OPERATIONS:
Net investment income.......................................... $ 1,091,771 $ 1,532,617
Net realized gains (losses) from security transactions ........ 3,182 (134,563)
----------------- -------------------
Net increase in net assets from operations........................ 1,094,953 1,398,054
----------------- -------------------
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income..................................... (1,091,771) (1,532,617)
----------------- -------------------
FROM FUND SHARE TRANSACTIONS(A):
Proceeds from shares sold...................................... 73,491,779 168,143,765
Net asset value of shares issued in reinvestment
of distributions to shareholders............................. 898,665 1,129,608
Payments for shares redeemed................................... (62,738,471) (162,084,359)
----------------- -------------------
Increase in net assets from
Fund share transactions........................................ 11,651,973 7,189,014
----------------- -------------------
CAPITAL CONTRIBUTION BY AFFILIATE (Note 2)........................ -- 105,000
----------------- -------------------
TOTAL INCREASE IN NET ASSETS ..................................... 11,655,155 7,159,451
NET ASSETS:
Beginning of period............................................ 41,768,967 34,609,516
----------------- -------------------
End of period.................................................. $ 53,424,122 $ 41,768,967
================= ===================
<FN>
(A)Represents both the dollar value and the number of shares.
See accompanying notes to financial statements.
</FN>
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
INSTITUTIONAL GOVERNMENT INCOME FUND
FINANCIAL HIGHLIGHTS
Per Share Data for a Share Outstanding Throughout Each Year
Six Months
Ended Year Ended September 30,
Mar. 31, 1995 --------------------------------------
(Unaudited) 1994 1993 1992 1991 1990
---------- --------- ---------- --------- --------- ----------
<S> <C> <C> <C> <C> <C> <C>
Net asset value at beginning of year........... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
---------- --------- ---------- --------- --------- ----------
Income from investment operations:
Net investment income....................... 0.025 0.034 0.029 0.040 0.065 0.081
---------- --------- ---------- --------- --------- ----------
Total from investment operations............... 0.025 0.034 0.029 0.040 0.065 0.081
---------- --------- ---------- --------- --------- ----------
Less distributions:
Dividends from net investment income........ (0.025) (0.034) (0.029) (0.040) (0.065) (0.081)
---------- --------- ---------- --------- --------- ----------
Total distributions ........................... (0.025) (0.034) (0.029) (0.040) (0.065) (0.081)
---------- --------- ---------- --------- --------- ----------
Net asset value at end of year................. $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
========== ========= ========== ========= ========= ==========
Total return................................... 5.08%(B) 3.43% 2.96% 4.08% 6.61% 8.31%
========== ========= ========== ========= ========= ==========
Net assets at end of year (000's) ............. $53,424 $41,769 $34,610 $43,432 $62,313 $97,727
========== ========= ========== ========= ========= ==========
Ratios net of fees waived by the Adviser (A):
Ratio of expenses to average net assets..... 0.40%(B) 0.40% 0.40% 0.37% 0.35% 0.33%
Ratio of net investment income
to average net assets .................... 5.03%(B) 3.41% 2.92% 4.04% 6.50% 8.04%
Ratios assuming no waiver of fees by the Adviser:
Ratio of expenses to average net assets .... 0.42%(B) 0.42% 0.48% 0.43% 0.36% 0.33%
Ratio of net investment income to
average net assets ....................... 5.01%(B) 3.39% 2.84% 3.97% 6.48% 8.04%
<FN>
(A)The Adviser has periodically absorbed expenses of the Fund through waiver of
the investment advisory fee (Note 2).
(B)Annualized
See accompanying notes to financial statements.
</FN>
</TABLE>
<PAGE>
INSTITUTIONAL GOVERNMENT INCOME FUND
NOTES TO FINANCIAL STATEMENTS
March 31, 1995 (Unaudited)
1. Significant Accounting Policies
The Institutional Government Income Fund (the Fund) is a series of shares of
Midwest Trust (the Trust). The Trust (formerly Midwest Income Trust) is
registered under the Investment Company Act of 1940, as amended, as a
diversified, open-end management investment company. The Trust was organized as
a Massachusetts business trust on December 7, 1980. The Declaration of Trust, as
amended, permits the Trustees to issue an unlimited number of shares of the
Fund.
The following is a summary of the Fund's significant accounting policies:
Securities valuation -- The Fund's securities are valued on the amortized cost
basis, which approximates market value. This involves initially valuing a
security at its original cost and thereafter assuming a constant amortization to
maturity of any discount or premium. This method of valuation is expected to
enable the Fund to maintain a constant net asset value per share.
Repurchase agreements -- Repurchase agreements, which are collateralized by U.S.
Government obligations, are valued at cost which, together with accrued
interest, approximates market. Collateral for repurchase agreements is held in
safekeeping in the customer-only account of the Fund's custodian, at the Federal
Reserve Bank of Cleveland. At the time the Fund enters into a repurchase
agreement, the seller agrees that the value of the underlying securities,
including accrued interest, will at all times be equal to or exceed the face
amount of the repurchase agreement. In addition, the Fund actively monitors and
seeks additional collateral, as needed. In the event of a bankruptcy or other
default of the seller of a repurchase agreement, the Fund could experience both
delays in liquidating the underlying security and losses. These losses would
equal the face amount of the repurchase agreement and accrued interest, net of
any proceeds received in liquidation of the underlying securities. To minimize
the possibility of loss, the Fund enters into repurchase agreements only with
institutions deemed to be creditworthy by the Adviser, including banks having
assets in excess of $10 billion and primary U.S. Government securities dealers.
Refer to the Fund's Portfolio of Investments for the face amount of repurchase
agreements and accrued interest as of March 31, 1995.
Share valuation -- The net asset value per share of the Fund is calculated daily
by dividing the total value of the Fund's assets, less liabilities, by the
number of shares outstanding. The offering price per share and redemption price
per share is equal to the net asset value per share.
Investment income and distributions to shareholders -- Interest income is
accrued as earned. Dividends arising from net investment income are declared
daily and paid on the last business day of each month to shareholders of the
Fund. Net realized short-term capital gains, if any, may be distributed during
the year and net realized long-term capital gains, if any, are distributed at
least once each year.
Security transactions -- Security transactions are accounted for on the trade
date. Securities sold are valued on a specific identification basis.
Federal income tax -- It is the Fund's policy to comply with the special
provisions of the Internal Revenue Code available to regulated investment
companies. As provided therein, in any fiscal year in which the Fund so
qualifies, and distributes at least 90% of its taxable net income, the Fund (but
not the shareholders) will be relieved of federal income tax on the income
distributed. Accordingly, no provision for income taxes has been made.
<PAGE>
In order to avoid imposition of the excise tax applicable to regulated
investment companies, it is also the Fund's intention to declare as dividends in
each calendar year at least 98% of its net investment income (earned during the
calendar year) and 98% of its net realized capital gains (earned during the
twelve months ended October 31) plus undistributed amounts from prior years.
The tax basis of investments for the Fund is equal to the amortized cost as
shown on the Statement of Assets and Liabilities.
As of September 30, 1994, the Fund had capital loss carryforwards for federal
income tax purposes of $33,284, none of which expire prior to September 30,
2000. These capital loss carryforwards may be utilized in future years to offset
net realized capital gains prior to distributing such gains to shareholders.
Reclassification of capital accounts -- During the prior fiscal year, the Fund
adopted Statement of Position 93-2, "Determination, Disclosure, and Financial
Statement Presentation of Income, Capital Gain, and Return of Capital
Distributions by Investment Companies" (SOP). The purpose of this SOP is to
report the undistributed net investment income (loss) and accumulated net
realized capital gain (loss) accounts in such a manner as to approximate amounts
available for future distributions (or to offset future realized capital gains)
and to achieve uniformity in the presentation of distributions by investment
companies.
As a result of this SOP, the Fund reclassified $105,000 from accumulated
undistributed net realized losses to aggregate paid-in-capital. This represented
the amount necessary to report these balances on a tax basis as of September 30,
1994. This reclassification, which had no impact on the net asset value of the
Fund, was attributable to differences in the computation of realized capital
losses under federal tax rules and generally accepted accounting principles
related to the capital contribution discussed in Note 2. No additional
adjustments, related to SOP 93-2, were required for the six months ended March
31, 1995.
2. Transactions with Affiliates
The President of the Trust is the controlling shareholder of Leshner Financial,
Inc., whose subsidiaries include Midwest Group Financial Services, Inc. (the
Adviser), the Trust's investment manager and principal underwriter, and MGF
Service Corp. (MGF), the shareholder servicing and transfer agent and accounting
and pricing agent for the Trust.
MANAGEMENT AGREEMENT
The Fund's investments are managed by the Adviser under the terms of a
Management Agreement. Under the Management Agreement, the Fund pays the Adviser
a fee, which is computed and accrued daily and paid monthly, at an annual rate
of .2% of its average daily net assets.
States in which shares of the Trust are offered may impose an expense limitation
based upon net assets. The Adviser has agreed to reimburse the Fund for expenses
which exceed the most restrictive applicable expense limitation of any state. No
reimbursement was required from the Adviser with respect to the Fund for the six
months ended March 31, 1995. However, in order to reduce the operating expenses
of the Fund, the Adviser voluntarily waived $5,000 of its advisory fees during
the period.
<PAGE>
TRANSFER AGENT AND SHAREHOLDER SERVICE AGREEMENT
Under the terms of the Transfer, Dividend Disbursing, Shareholder Service and
Plan Agency Agreement between the Trust and MGF, MGF maintains the records of
each shareholder's account, answers shareholders' inquiries concerning their
accounts, processes purchases and redemptions of the Fund's shares, acts as
dividend and distribution disbursing agent and performs other shareholder
service functions. Under the terms of the Agreement, the Fund pays MGF a fee at
an annual rate of $25.00 per shareholder account, subject to a minimum monthly
fee of $1,000. In addition, the Fund pays out-of-pocket expenses including, but
not limited to, postage and supplies.
ACCOUNTING SERVICES AGREEMENT
Under the terms of the Accounting Services Agreement between the Trust and MGF,
MGF calculates the daily net asset value per share and maintains the financial
books and records of the Fund. For these services, MGF receives a monthly fee
from the Fund of $3,200.
PLAN OF DISTRIBUTION
The Fund has adopted a plan of distribution under which the Fund may directly
incur or reimburse the Adviser for expenses related to the distribution and
promotion of shares. The annual limitation of payment of such expenses is .10%
of the average daily net assets of the Fund.
CAPITAL CONTRIBUTION
During the year ended September 30, 1994, an affiliate purchased a security from
the Fund at an amount $105,000 in excess of the security's fair market value.
The Fund recorded a realized loss on the sale and an offsetting capital
contribution from the affiliate.
<PAGE>
<TABLE>
<CAPTION>
INSTITUTIONAL GOVERNMENT INCOME FUND
PORTFOLIO OF INVESTMENTS
MARCH 31, 1995 (Unaudited)
Par Yield To Market
Value INVESTMENTS-71.4% Maturity(1) Value
- - -------------- ---------------------- ------------- ------------
<C> <S> <C> <C>
U.S. TREASURY OBLIGATIONS-16.7%
$ 3,000,000 U.S. Treasury Bills, 5/11/95.............................. 5.905% $ 2,980,633
3,000,000 U.S. Treasury Bills, 5/18/95.............................. 5.933 2,977,440
3,000,000 U.S. Treasury Bills, 8/10/95.............................. 5.978 2,936,247
- - -------------- -------------
$ 9,000,000 TOTAL U.S. TREASURY OBLIGATIONS............................ $ 8,894,320
- - -------------- (Amortized Cost $8,894,320) -------------
U.S. GOVERNMENT AGENCY ISSUES-54.7%
$ 2,000,000 Federal Home Loan Mortgage Corp. Discount Notes, 4/3/95.... 6.094 $ 1,999,337
2,000,000 Federal Farm Credit Bank Notes, 4.43%, 4/3/95.............. 6.115 1,999,807
4,000,000 Federal National Mortgage Assoc. Discount Notes, 4/4/95.... 5.894 3,998,040
4,000,000 Federal Farm Credit Bank Discount Notes, 4/10/95........... 5.914 3,994,100
500,000 Federal Home Loan Bank Notes, 6.04%, 4/25/95............... 5.370 500,211
2,000,000 Federal National Mortgage Assoc. Discount Notes, 5/15/95... 6.092 1,985,333
2,000,000 Federal Farm Credit Bank Discount Notes, 5/19/95........... 6.021 1,984,187
4,000,000 Federal National Mortgage Assoc. Discount Notes, 6/16/95... 6.074 3,949,502
3,000,000 Federal National Mortgage Assoc. Discount Notes, 7/10/95... 6.157 2,949,750
3,000,000 Federal Home Loan Bank Discount Notes, 8/2/95.............. 6.133 2,938,602
3,000,000 Federal National Mortgage Assoc. Discount Notes, 9/29/95... 6.170 2,909,802
- - -------------- -------------
$ 29,500,000 TOTAL U.S. GOVERNMENT AGENCY ISSUES ....................... $ 29,208,671
- - -------------- (Amortized Cost $29,208,671)........................... -------------
$ 38,500,000 TOTAL INVESTMENTS AT VALUE ................................ $ 38,102,991
============== (Amortized Cost $38,102,991) -------------
</TABLE>
<TABLE>
Face Market
Amount REPURCHASE AGREEMENTS(2)-28.6% Value
- - -------------- ------------------------------ ------------
<C> <S> <C>
$ 7,500,000 Daiwa Securities America, Inc., 6.20%, dated 3/31/95,
due 4/3/95, repurchase proceeds $7,503,875................................ $ 7,500,000
7,790,000 Harris-Nesbitt Thomson Securities, Inc., 5.90%, dated 3/31/95,
due 4/3/95, repurchase proceeds $7,793,830................................ 7,790,000
- - -------------- -------------
$ 15,290,000 TOTAL REPURCHASE AGREEMENTS .................................................. $ 15,290,000
============== -------------
TOTAL INVESTMENTS AND REPURCHASE AGREEMENTS AT VALUE- 100% ................... $ 53,392,991
=============
<FN>
(1)Yield to maturity at date of purchase.
(2)Repurchase agreements are fully collateralized by U.S. Government obligations.
See accompanying notes to financial statements.
</FN>
</TABLE>
<PAGE>
TOTAL RETURN
SEMI-ANNUAL
REPORT
MARCH 31, 1995
(UNAUDITED)
GLOBAL BOND
FUND
<PAGE>
MIDWEST GROUP OF FUNDS (R)
MIDWEST TRUST
312 Walnut St., 21st Floor
Cincinnati, Ohio 45202-3874
Nationwide (Toll Free) 800-543-8721
Cincinnati 629-2000
Rate Line 579-0999
Shareholder Services
Nationwide (Toll Free) 800-543-0407
Cincinnati 629-2050
BOARD OF TRUSTEES
Gary W. Heldman
James C. Krumme
H. Jerome Lerner
Robert H. Leshner
Oscar P. Robertson
G. William Rohde
Bruce J. Simpson
OFFICERS
Robert H. Leshner, President
John F. Splain, Secretary
Mark J. Seger, Treasurer
INVESTMENT ADVISER/UNDERWRITER
MIDWEST GROUP FINANCIAL SERVICES, INC.
312 Walnut St., 21st Floor
Cincinnati, Ohio 45202-3874
TRANSFER AGENT
MGF SERVICE CORP.
P.O. Box 5354
Cincinnati, Ohio 45201-5354
This report is authorized for distribution only
when it is accompanied or preceded by a current
prospectus of Midwest Trust.
5/95
<PAGE>
LETTER FROM THE PRESIDENT
Dear Fellow Shareholder:
The global markets offer a wide range of investment opportunities. There are
substantial benefits of diversification by broadening into the global markets.
Since foreign markets do not necessarily move in tandem with domestic markets,
each country and its currency represent varying opportunities at different
times. Fifty percent of the global market represents debt securities (bonds).
While no market is as large as the United States market, many are very liquid
and capable of handling sizable transactions.
During the first quarter of 1995, Midwest Group introduced the Midwest Global
Bond Fund. It seeks high total return through both income and capital
appreciation. With more than sixty percent of the world's debt securities issued
outside the United States, the global bond markets offer a wide range of
investment opportunities.
To have confidence in the global market, you must have confidence in the people
who know the global market. That is why Midwest Group joined forces with Rogge
Global Partners of London. The Midwest Global Bond Fund is expertly handled by
Rogge, which has managed portfolios of $50 million plus for more than 10 years.
Rogge focuses on healthy countries with high savings, monetary growth, and
credible monetary authorities while minimizing exposure to emerging market
countries. Rogge manages for high total returns through both income and capital
appreciation.
The Midwest Global Bond Fund allows investors to participate in the global bond
markets with this experienced investment manager at a much lower account size
than would otherwise be available. The Midwest Global Bond Fund is an excellent
opportunity to diversify globally, as more and more investors like you are
recognizing the importance of adding an international bond component to their
portfolio.
The Fund's total return (Class A shares) excluding the impact of the 4% sales
charge was 8.60% from the Fund's inception on February 1, 1995, through March
31, 1995.
Sincerely,
Robert H. Leshner
President
<PAGE>
ROGGE GLOBAL PARTNERS
MANAGER UPDATE
General Points
[ ] There has been little change in the over all economic scenario.
[ ] We believe that deflation will be the key theme over the intermediate term.
[ ] In Europe, real yields are high and offer good value.
[ ] While the dollar has stabilized after dramatic falls during the first
quarter, in the intermediate term, we expect the down trend to continue.
Dollar Block
The jury is still out on the U.S. economy. While there are signs of a slowdown
in economic activity, there is no conclusive evidence as yet. We are still
concerned that due to the level of outstanding consumer debt, the fall-off in
growth may be somewhat sharper than is generally expected.
Despite this, we remain unfavorably disposed to the U.S. bond market, preferring
to focus on funding concerns and the totally insufficient level of domestic
saving which is characterized by a bulging current account deficit. The U.S.
economy needs to attract overseas capital on a daily basis. A "hard landing"
would do little to improve international confidence in either the U.S. economy
or the status of the dollar as the world's reserve currency.
Europe
Our view of Europe remains unchanged. Core Europe remains our favored region.
Growth remains modest and inflation is stable or declining. Germany remains our
most favored bond market.
Italy has been one of our most favored smaller markets for some time although
recently political concerns had tempered our enthusiasm. However, more recently
the political risks have moderated somewhat as the near term risks of a general
election have receded and the government and the unions appear to be close to
agreement on pension reform. As a result of this we have marginally increased
our allocation to Italy.
Japan
The economic scenario in Japan has been little changed by the recently agreed
fiscal stimulation measures. Once again it appears that the outcome of these
measures will substantially underperform expectations. We still believe that
yields can decline further.
We are optimistic about bond markets worldwide. The globalization of the
financial markets will continue, while the prospect of being able to outperform
domestic benchmarks in all kinds of different markets will attract U.S.
investors.
INVESTMENT PHILOSOPHY
Rogge Global Partners believe that success in the global marketplace means being
in the right country at the right time. To identify the appropriate countries
for investment, focus is placed on "healthy" countries which have the potential
to produce the highest bond returns and currency returns on a relative basis.
Healthy countries are defined as those with sound finances relative to other
countries, paying particular attention to savings rates and monetary growth, as
well as the credibility of monetary authorities.
Country Management
Investments in the Fund are geographically concentrated in Australia, Belgium,
Canada, Denmark, France, Germany, Italy, Japan, the Netherlands, Spain, Sweden,
the United Kingdom and the United States. The Fund may also invest up to ten
percent of its total assets in bonds issued in emerging markets.
Active Management of Country/Currency Allocation
Built into the investment process is the belief that over the long term, a
country's currency and bond market will tend to move in the same direction.
However, exchange rates may exhibit significant volatility over the short term.
Therefore, the Fund may utilize a variety of currency hedging techniques in
order to reduce short term volatility resulting from currency exchange rate
fluctuations.
Duration Control
The yield curve in each individual market is analyzed in order to determine the
appropriate level of interest rate risk. Once determined, modified duration
targets within each country are set.
Security Selection
Credit risk is largely controlled by investing predominately in highly liquid
governments and other high quality debt instruments. Considerable care is taken
to ensure that there is adequate liquidity in all securities selected.
The Fund's portfolio is monitored and reviewed on a continual basis focusing on
country allocation, currency management, duration control and security
selection.
<PAGE>
<TABLE>
<CAPTION>
GLOBAL BOND FUND
STATEMENT OF ASSETS AND LIABILITIES
March 31, 1995 (Unaudited)
ASSETS
<S> <C>
Investments in securities:
At acquisition cost......................................................................... $ 4,439,480
==============
At amortized cost .......................................................................... $ 4,439,480
==============
At value (Note 1) .......................................................................... $ 4,686,605
Receivable for open forward exchange contracts, net (Note 6)................................... 660,538
Cash .......................................................................................... 953,288
Interest receivable ........................................................................... 107,369
Receivable for Fund shares sold................................................................ 55,652
Receivable for securities sold................................................................. 1,938,541
Receivable from affiliates (Note 3)............................................................ 5,445
Other assets................................................................................... 10,660
--------------
TOTAL ASSETS ............................................................................... 8,418,098
--------------
LIABILITIES
Dividends payable ............................................................................. 1,099
Payable for securities purchased............................................................... 2,782,300
Payable to affiliates (Note 3) ................................................................ 8,000
Other accrued expenses and liabilities......................................................... 14,460
--------------
TOTAL LIABILITIES .......................................................................... 2,805,859
--------------
NET ASSETS ................................................................................... $ 5,612,239
==============
Net assets consist of:
Capital shares ................................................................................ $ 5,284,885
Undistributed net investment income............................................................ 2,060
Accumulated net realized gains from security transactions and foreign currency transactions.... 8,648
Net unrealized appreciation on investments and foreign currencies............................. 316,646
--------------
Net assets .................................................................................... $ 5,612,239
==============
PRICING OF CLASS A SHARES
Net assets applicable to Class A shares ....................................................... $ 5,585,682
==============
Shares of beneficial interest outstanding (unlimited number of shares authorized,
no par value) (Note 4) ...................................................................... 519,878
==============
Net asset value and redemption price per share (Note 1)........................................ $ 10.74
==============
Maximum offering price per share (Note 1) ..................................................... $ 11.19
==============
PRICING OF CLASS C SHARES
Net assets applicable to Class C shares ....................................................... $ 26,557
==============
Shares of beneficial interest outstanding (unlimited number of shares authorized,
no par value) (Note 4) ...................................................................... 2,475
==============
Net asset value and redemption price per share (Note 1)........................................ $ 10.73
==============
Maximum offering price per share (Note 1) ..................................................... $ 10.73
==============
<FN>
See accompanying notes to financial statements.
</FN>
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
GLOBAL BOND FUND
STATEMENT OF OPERATIONS
For the Period Ended March 31, 1995(A) (Unaudited)
<S> <C>
INVESTMENT INCOME
Interest income (net of withholding taxes of $228) ......................................... $ 40,833
--------------
EXPENSES
Accounting and pricing fees (Note 3)........................................................ 12,000
Professional fees........................................................................... 5,617
Investment advisory fees (Note 3)........................................................... 4,693
Distribution expenses, Class A (Note 3)..................................................... 2,313
Transfer agent fees, Class A (Note 3)....................................................... 2,000
Transfer agent fees, Class C (Note 3)....................................................... 2,000
Custodian fees.............................................................................. 1,800
Trustees' fees and expenses................................................................. 734
Registration fees, Common................................................................... 167
Registration fees, Class A.................................................................. 322
Registration fees, Class C.................................................................. 322
Postage and supplies........................................................................ 439
--------------
TOTAL EXPENSES............................................................................ 32,407
Less fees waived by the Adviser and expenses reimbursed by the Manager (Note 3)............. (23,352)
--------------
NET EXPENSES.............................................................................. 9,055
--------------
NET INVESTMENT INCOME ......................................................................... 31,778
--------------
REALIZED AND UNREALIZED GAINS FROM INVESTMENTS AND FOREIGN CURRENCY
Net realized gain from:
Security transactions ...................................................................... 8,648
Foreign currency transactions............................................................... 32,250
Net change in unrealized appreciation/depreciation on:
Investments ................................................................................ 41,494
Translation of assets and liabilities in foreign currencies................................. 275,152
--------------
NET REALIZED AND UNREALIZED GAINS FROM INVESTMENTS AND FOREIGN CURRENCY ....................... 357,544
--------------
NET INCREASE IN NET ASSETS FROM OPERATIONS ................................................... $ 389,322
==============
<FN>
(A)Represents the period from the start of business (February 1, 1995) through
March 31, 1995.
See accompanying notes to financial statements.
</FN>
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
GLOBAL BOND FUND
STATEMENT OF CHANGES IN NET ASSETS
For the Period Ended March 31, 1995(A) (Unaudited)
<S> <C>
FROM OPERATIONS:
Net investment income ...................................................................... $ 31,778
Net realized gains from security transactions .............................................. 8,648
Net realized gains from foreign currency transactions....................................... 32,250
Net change in unrealized appreciation/depreciation on investments........................... 41,494
Net change in unrealized appreciation/depreciation on translation of assets
and liabilities in foreign currencies..................................................... 275,152
--------------
Net increase in net assets from operations .................................................... 389,322
--------------
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income, Class A ........................................................ (29,574)
From net investment income, Class C ........................................................ (144)
From net realized gains from foreign currency transactions, Class A......................... (32,094)
From net realized gains from foreign currency transactions, Class C......................... (156)
--------------
Decrease in net assets from distributions to shareholders ..................................... (61,968)
--------------
FROM FUND SHARE TRANSACTIONS (Note 4):
CLASS A
Proceeds from shares sold .................................................................. 5,198,016
Net asset value of shares issued in reinvestment of distributions to shareholders .......... 60,578
Payments for shares redeemed ............................................................... --
--------------
Increase in net assets from Class A share transactions ........................................ 5,258,594
--------------
CLASS C
Proceeds from shares sold .................................................................. 26,000
Net asset value of shares issued in reinvestment of distributions to shareholders........... 291
Payments for shares redeemed................................................................ --
--------------
Increase in net assets from Class C share transactions ........................................ 26,291
--------------
Net increase in net assets from fund share transactions........................................ 5,284,885
--------------
TOTAL INCREASE IN NET ASSETS ................................................................. 5,612,239
NET ASSETS:
Beginning of period......................................................................... --
--------------
End of period (including undistributed net investment income of $2,060)..................... $ 5,612,239
==============
<FN>
(A)Represents the period from the start of business (February 1, 1995) through
March 31, 1995.
See accompanying notes to financial statements.
</FN>
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
GLOBAL BOND FUND
FINANCIAL HIGHLIGHTS
For the Period Ended March 31, 1995(A) (Unaudited)
Per Share Data for a Share Outstanding Throughout Each Period
Class A Class C
--------------- ---------------
<S> <C> <C>
Net asset value at beginning of period.................................... $ 10.00 $ 10.00
--------------- ---------------
Income from investment operations:
Net investment income.................................................. 0.12 0.08
Net realized and unrealized gains on investments and
foreign currency transactions ....................................... 0.74 0.77
--------------- ---------------
Total from investment operations.......................................... 0.86 0.85
--------------- ---------------
Less distributions:
From net investment income............................................. (0.06) (0.06)
From net realized gains from foreign currency transactions............. (0.06) (0.06)
--------------- ---------------
Total distributions....................................................... (0.12) (0.12)
--------------- ---------------
Net asset value at end of period.......................................... $ 10.74 $ 10.73
=============== ===============
Total return(B) .......................................................... 8.60% 8.50%
=============== ===============
Net assets at end of period (000's)....................................... $ 5,586 $ 27
=============== ===============
Ratio of expenses to average net assets(C) ............................... 1.27%(D) 1.95%(D)
Ratio of net investment income to average net assets...................... 4.47%(D) 3.96%(D)
Portfolio turnover rate................................................... 124%(D) 124%(D)
<FN>
(A)Represents the period from initial public offering of shares (February 1,
1995) through March 31, 1995.
(B)The total returns shown do not include the effect of applicable front-end
sales loads, and are not annualized.
(C)The Adviser has absorbed expenses of the Fund through waiver of the
investment advisory fee and the Manager has reimbursed the Fund for other
operating expenses. The ratio of expenses to average net assets assuming no
waiver of fees or reimbursement of expenses was 3.61% and 330.53% for Class A
and Class C, respectively (Note 3).
(D)Annualized.
See accompanying notes to financial statements.
</FN>
</TABLE>
<PAGE>
GLOBAL BOND FUND
NOTES TO FINANCIAL STATEMENTS
March 31, 1995 (Unaudited)
1. Significant Accounting Policies
The Global Bond Fund (the Fund) is a non-diversified series of shares of Midwest
Trust (the Trust). The Trust (formerly Midwest Income Trust) is registered under
the Investment Company Act of 1940, as amended, as an open-end management
investment company. The Trust was organized as a Massachusetts business trust on
December 7, 1980. The Declaration of Trust, as amended, permits the Trustees to
issue an unlimited number of shares of the Fund. The Fund commenced operations
on February 1, 1995.
The Fund offers two classes of shares: Class A shares (sold subject to a maximum
front-end sales load of 4%) and Class C shares (sold subject to a maximum
contingent deferred sales load of 1% if redeemed within a one year period from
purchase.) Each Class A and Class C share of the Fund represents identical
interests in the Fund's investment portfolio and has the same rights, except
that (i) Class C shares bear the expenses of higher distribution fees, which
will cause Class C shares to have a higher expense ratio and to pay lower
dividends than Class A shares; (ii) certain other class specific expenses will
be borne solely by the class to which such expenses are attributable; and (iii)
each class has exclusive voting rights with respect to matters relating to its
own distribution arrangements.
The following is a summary of the Fund's significant accounting policies:
Securities valuation -- The Fund's securities are valued at their most recent
bid prices as obtained from one or more of the major market makers for such
securities. The U.S. dollar value of forward foreign currency contracts is
determined using forward currency exchange rates supplied by a quotation
service.
Share valuation -- The net asset value per share of the Fund is calculated daily
by dividing the total value of the Fund's assets, less liabilities, by the
number of shares outstanding. The maximum offering price per share of Class A
shares of the Fund is equal to the net asset value per share plus a sales load
of 4.17% of the net asset value (or 4% of the offering price). The maximum
offering price per share of Class C shares of the Fund is equal to the net asset
value per share. The redemption price per share of each class is equal to the
net asset value per share. Class C shares are subject to a contingent deferred
sales load of 1% of the original purchase price if redeemed within a one-year
period from the date of purchase.
Investment income and distributions to shareholders -- Interest income is
accrued as earned. Dividends arising from net investment income are declared and
paid quarterly. Net realized short-term capital gains, if any, may be
distributed during the year and net realized long-term capital gains, if any,
are distributed at least once each year.
Allocations between classes -- Investment income earned by the Fund is allocated
daily to each class of shares based on the percentage of the net asset value of
settled shares of such class to the total of the net asset value of settled
shares of both classes of shares. Realized capital gains and losses and
unrealized appreciation and depreciation is allocated daily to each class of
shares based upon its proportionate share of total net assets of the Fund. Class
specific expenses are charged directly to the class incurring the expense.
Common expenses which are not attributable to a specific class are allocated
daily to each class based upon its proportionate share of total net assets of
the Fund.
Security transactions -- Security transactions are accounted for on the trade
date. Securities sold are valued on a specific identification basis.
Federal income tax -- It is the Fund's policy to comply with the special
provisions of the Internal Revenue Code available to regulated investment
companies. As provided therein, in any fiscal year in which the Fund so
qualifies, and distributes at least 90% of its taxable net income, the Fund (but
not the shareholders) will be relieved of federal income tax on the income
distributed.
Accordingly, no provision for income taxes has been made.
In order to avoid imposition of the excise tax applicable to regulated
investment companies, it is also the Fund's intention to declare as dividends in
each calendar year at least 98% of its net investment income (earned during the
calendar year) and 98% of its net realized capital gains (earned during the
twelve months ended October 31) plus undistributed amounts from prior years.
<PAGE>
The following information is based upon federal income tax cost of investment
securities and foreign currencies as of March 31, 1995:
<TABLE>
<S> <C>
Gross unrealized appreciation.......................... $ 385,457
Gross unrealized depreciation ......................... (68,811)
-----------
Net unrealized depreciation......................... $ 316,646
===========
Federal income tax cost................................ $ 4,439,480
===========
</TABLE>
2. Investment Transactions
During the period ended March 31, 1995, purchases and proceeds from sales and
maturities of investment securities, other than short-term investments, amounted
to $4,935,709 and $769,107, respectively, for the Fund.
3. Transactions with Affiliates
The President of the Trust is the controlling shareholder of Leshner Financial,
Inc., whose subsidiaries include Midwest Group Financial Services, Inc., the
Trust's investment manager and principal underwriter, and MGF Service Corp.
(MGF), the shareholder servicing and transfer agent and accounting and pricing
agent for the Trust.
MANAGEMENT AND INVESTMENT ADVISORY AGREEMENTS
The Trust retains Midwest Group Financial Services, Inc., (the Manager), to
provide general investment supervisory services to the Fund and to manage the
Fund's business affairs. The Fund pays the Manager a fee, which is computed and
accrued daily and paid monthly, equal to the annual rate of .7% of its average
daily net assets up to $100 million and .6% of such assets in excess of $100
million. The Fund's investments are managed by Rogge Global Partners, plc, (the
Adviser), under the terms of an Investment Advisory Agreement. Under the
Investment Advisory Agreement, the Manager pays the Adviser a fee, which is
computed and accrued daily and paid monthly, at an annual rate of .35% of the
Fund's average daily net assets up to $100 million, and .3% of such assets in
excess of $100 million.
States in which shares of the Fund are offered may impose an expense limitation
based upon net assets. The Manager has agreed to reimburse the Fund yearly for
expenses which exceed the most restrictive applicable expense limitation of any
state. No reimbursement was required from the Adviser with respect to the Fund
for the period ended March 31, 1995. In order to reduce the operating expenses
of the Fund, the Adviser voluntarily waived $4,693 of its advisory fees and the
Manager reimbursed $16,346 of common operating expenses and $2,313 of Class C
expenses during the period ended March 31, 1995.
TRANSFER AGENT AND SHAREHOLDER SERVICE AGREEMENT
Under the terms of the Transfer, Dividend Disbursing, Shareholder Service and
Plan Agency Agreement (the Agreement) between the Fund and MGF, MGF maintains
the records of each shareholder's account, answers shareholders' inquiries
concerning their accounts, processes purchases and redemptions of the Fund's
shares, acts as dividend and distribution disbursing agent and performs other
shareholder service functions. Under the terms of the Agreement, MGF receives
for its services a fee, payable monthly, at an annual rate of $21.00 per
shareholder account subject to a $1,000 minimum monthly fee for each class of
shares. In addition, the Fund pays out-of-pocket expenses including, but not
limited to, postage and supplies.
ACCOUNTING SERVICES AGREEMENT
Under the terms of the Accounting Services Agreement between the Trust and MGF,
MGF calculates the daily net asset value per share and maintains the financial
books and records of the Fund. For these services, MGF receives a monthly fee of
$6,000 from the Fund.
UNDERWRITING AGREEMENT
Under the terms of the Underwriting Agreement, the Manager serves as the
principal underwriter for the Fund, and is the exclusive agent for distribution
of shares of the Fund. The Manager earned $763 of underwriting and broker
commissions on sales of shares of the Fund for the period ended March 31, 1995.
<PAGE>
PLANS OF DISTRIBUTION
The Fund, on behalf of its Class A shares, has adopted a plan of distribution
(Class A Plan) under which such shares may directly incur or reimburse the
Manager for expenses related to the promotion and sale of shares. The annual
limitation for payment of such expenses under the Class A Plan is .35% of
average daily net assets attributable to Class A shares.
The Fund also has adopted a plan of distribution (Class C Plan) under which its
Class C shares may directly incur or reimburse the Manager for expenses related
to the promotion and sale of such shares. The annual limitation for payment of
such expenses under the Class C Plan is 1% of average daily net assets
attributable to Class C shares.
4. Fund Share Transactions
Proceeds from shares sold and payments for shares redeemed as shown in the
Statement of Changes in Net Assets are the result of the following share
transactions for the period ended March 31, 1995(A):
<TABLE>
Class A Class C
--------------- ---------------
<S> <C> <C>
Shares sold............................................................... 514,238 2,448
Shares issued in reinvestment of
distributions to shareholders........................................... 5,640 27
Less shares redeemed...................................................... -- --
--------------- ---------------
Net increase in shares outstanding........................................ 519,878 2,475
Shares outstanding, beginning of period................................... -- --
--------------- ---------------
Shares outstanding, end of period......................................... 519,878 2,475
=============== ===============
<FN>
(A)Represents the period from the initial public offering of shares (February 1,
1995) through March 31, 1995.
</FN>
</TABLE>
5. Foreign Currency Translation
Amounts denominated in or expected to settle in foreign currencies are
translated into United States dollars based on exchange rates on the following
basis:
A. The market values of investment securities, other assets and
liabilities are translated at the closing rate of exchange each day.
B. Purchases and sales of investment securities, income and expenses are
translated at the rate of exchange prevailing on the respective dates
of such transactions.
C. The Fund isolates that portion of the results of operations resulting
from changes in foreign exchange rates on investments from the
fluctuations arising from changes in market prices of securities held.
Reported net realized foreign exchange gains or losses arise from 1) sales of
portfolio securities, 2) sales of foreign currencies, 3) currency gains or
losses realized between the trade and settlement dates on securities
transactions, and 4) the difference between the amounts of dividends, interest,
and foreign withholding taxes recorded on the Fund's books, and the U.S. dollar
equivalent of the amounts actually received or paid. Net unrealized foreign
exchange gains and losses arise from changes in the value of assets and
liabilities including investments in securities, resulting from changes in the
exchange rate.
<PAGE>
6. Forward Foreign Currency Contracts
A forward foreign currency contract is an obligation to purchase or sell a
currency against another currency at a future date and price as agreed upon by
the parties. A forward currency contract is traded over-the-counter and not on
organized commodities or securities exchanges. The Fund may either accept or
make delivery of the currency at the maturity of the forward contract or, prior
to maturity, enter into a closing transaction involving the purchase or sale of
an offsetting contract. The Fund engages in a forward currency contract in
anticipation of, or to protect itself against, fluctuations in exchange rates. A
forward currency contract is recorded at market value which fluctuates with
changes in currency exchange rates. When a forward currency contract is closed,
the Fund records a realized gain or loss equal to the difference between the
value of the contract at the time it was opened and the value at the time it was
closed. Risks may arise from the potential inability of a counterparty to meet
the terms of a contract and from unanticipated movements in the value of a
foreign currency relative to the U.S. dollar.
At March 31, 1995 the Fund had forward currency contracts outstanding as
follows:
<TABLE>
Net
Unrealized
Settlement To Receive Initial Market Appreciation
Date (To Deliver) Value Value (Depreciation)
---------- ------------- ------------- -------------- --------------
<S> <C> <C> <C> <C> <C> <C>
SELL CONTRACTS
4/10/95 (278,620) DEM $ (200,000) $ (203,457) $ (3,457)
4/10/95 (137,510) DEM (100,000) (100,414) (414)
4/11/95 (553,820) DEM (400,000) (404,390) (4,390)
4/27/95 (200,000) DEM (142,914) (145,977) (3,063)
4/28/95 (561,996) DEM (400,000) (409,883) (9,883)
------------- ------------- -------------- -------------
(1,731,946) DEM $ (1,242,914) $ (1,264,121) $ (21,207)
------------- ------------- -------------- -------------
4/3/95 (38,424,800) JPY $ (430,000) $ (444,835) $ (14,835)
4/3/95 (3,025,050) JPY (33,649) (35,020) (1,371)
------------- ------------- -------------- -------------
(41,449,850) JPY $ (463,649) $ (479,855) $ (16,206)
------------- ------------- -------------- -------------
TOTAL SELL CONTRACTS $ (1,706,563) $ (1,743,976) $ (37,413)
------------- -------------- -------------
BUY CONTRACTS
4/6/95 584,152 DEM $ 400,000 $ 426,683 $ 26,683
4/10/95 138,355 DEM 100,000 101,031 1,031
4/11/95 546,720 DEM 400,000 399,206 (795)
4/28/95 559,058 DEM 400,000 407,740 7,741
------------- ------------- -------------- -------------
1,828,285 DEM $ 1,300,000 $ 1,334,660 $ 34,660
------------- ------------- -------------- -------------
4/3/95 41,449,850 JPY $ 430,000 $ 479,855 $ 49,855
4/27/95 12,600,000 JPY 142,914 146,026 3,112
5/8/95 38,270,000 JPY 430,000 443,973 13,973
------------- ------------- -------------- -------------
92,319,850 JPY $ 1,002,914 $ 1,069,854 $ 66,940
------------- ------------- -------------- -------------
TOTAL BUY CONTRACTS $ 2,302,914 $ 2,404,514 $ 101,600
------------- -------------- -------------
NET CONTRACTS $ 596,351 $ 660,538 $ 64,187
============= ============== =============
<FN>
DEM-German mark
JPY-Japanese yen
</FN>
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
GLOBAL BOND FUND
PORTFOLIO OF INVESTMENTS
March 31, 1995 (Unaudited)
Par Market
Value INVESTMENTS -- 100.0% Value
------ --------------------- --------
<C> <S> <C>
U.S. TREASURY OBLIGATIONS -- 23.8%
$ 125,000 U.S. Treasury Notes, 7.875%, 11/15/04.................................... $ 130,430
930,000 U.S. Treasury Notes, 7.50%, 2/15/05...................................... 948,890
35,000 U.S. Treasury Bond, 7.625%, 2/15/25...................................... 35,787
--------------
TOTAL U.S. TREASURY OBLIGATIONS ......................................... $ 1,115,107
(Amortized Cost $1,115,525) --------------
FOREIGN GOVERNMENT ISSUES -- 71.1%
France -- 7.2%
FRF 1,600,000 Government of France, 7.75%, 4/12/00..................................... $ 336,024
--------------
Italy -- 4.0%
ITL 420,000,000 Government of Italy, 8.50%, 8/1/04...................................... 188,086
--------------
Japan -- 16.9%
JPY 64,000,000 Government of Japan, #174, 4.60%, 9/20/04................................ 793,333
--------------
Germany -- 31.0%
DEM 1,400,000 Federal Republic of Germany, 7.50%, 11/11/04............................ 1,043,894
DEM 550,000 Federal Republic of Germany, 7.375%, 1/3/05............................. 407,328
--------------
1,451,222
--------------
Great Britain -- 6.9%
GBP 200,000 U.K. Gilt, 8.50%, 12/7/05................................................ 325,556
--------------
Netherlands -- 5.1%
NLG 369,000 Government of Netherlands, 7.50%, 4/15/10............................... 236,860
--------------
TOTAL FOREIGN GOVERNMENT ISSUES ......................................... $ 3,331,081
(Amortized Cost $3,083,538) --------------
TIME DEPOSITS -- 5.1%
NLG 367,799 Netherlands Guilder Time Deposit, 4.3125%, 4/20/95....................... $ 240,417
--------------
TOTAL TIME DEPOSITS ..................................................... $ 240,417
(Amortized Cost $240,417) --------------
TOTAL INVESTMENTS AT VALUE--100.0% ...................................... $ 4,686,605
(Amortized Cost $4,439,480) ==============
<FN>
FRF-French franc
ITL-Italian lira
JPY-Japanese yen
DEM-German mark
GBP-British pound sterling
NLG-Netherlands guilder
See accompanying notes to financial statements.
</FN>
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<CIK> 0000066117
<NAME> MIDWEST TRUST (FORMERLY KNOWN AS MIDWEST INCOME TRUST)
<SERIES>
<NUMBER> 1
<NAME> SHORT TERM GOVERNMENT INCOME FUND
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> SEP-30-1995
<PERIOD-END> MAR-31-1995
<INVESTMENTS-AT-COST> 84,438,690
<INVESTMENTS-AT-VALUE> 84,926,404
<RECEIVABLES> 127,348
<ASSETS-OTHER> 33,129
<OTHER-ITEMS-ASSETS> 992
<TOTAL-ASSETS> 85,087,873
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 68,607
<TOTAL-LIABILITIES> 68,607
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 85,017,039
<SHARES-COMMON-STOCK> 85,017,039
<SHARES-COMMON-PRIOR> 89,703,820
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 2,227
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 0
<NET-ASSETS> 85,019,266
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 2,230,337
<OTHER-INCOME> 0
<EXPENSES-NET> 418,876
<NET-INVESTMENT-INCOME> 1,811,461
<REALIZED-GAINS-CURRENT> 2,227
<APPREC-INCREASE-CURRENT> 0
<NET-CHANGE-FROM-OPS> 1,813,688
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 1,811,461
<DISTRIBUTIONS-OF-GAINS> 4,105
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 184,862,659
<NUMBER-OF-SHARES-REDEEMED> 191,187,858
<SHARES-REINVESTED> 1,638,418
<NET-CHANGE-IN-ASSETS> (4,688,659)
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 4,105
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 202,868
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 418,876
<AVERAGE-NET-ASSETS> 84,861,750
<PER-SHARE-NAV-BEGIN> 1.00
<PER-SHARE-NII> 0.021
<PER-SHARE-GAIN-APPREC> 0
<PER-SHARE-DIVIDEND> 0.021
<PER-SHARE-DISTRIBUTIONS> 0
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 1.00
<EXPENSE-RATIO> 0.99
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<CIK> 0000066117
<NAME> MIDWEST TRUST (FORMERLY KNOWN AS MIDWEST INCOME TRUST)
<SERIES>
<NUMBER> 6
<NAME> ADJUSTABLE RATE U.S. GOVERNMENT SECURITIES FUND
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> SEP-30-1995
<PERIOD-END> MAR-31-1995
<INVESTMENTS-AT-COST> 22,689,038
<INVESTMENTS-AT-VALUE> 22,767,857
<RECEIVABLES> 199,246
<ASSETS-OTHER> 4,529
<OTHER-ITEMS-ASSETS> 64
<TOTAL-ASSETS> 22,971,696
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 602,214
<TOTAL-LIABILITIES> 602,214
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 23,630,797
<SHARES-COMMON-STOCK> 2,296,222
<SHARES-COMMON-PRIOR> 3,826,810
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> (1,340,134)
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 78,819
<NET-ASSETS> 22,369,482
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 700,067
<OTHER-INCOME> 0
<EXPENSES-NET> 87,924
<NET-INVESTMENT-INCOME> 612,143
<REALIZED-GAINS-CURRENT> (1,016,313)
<APPREC-INCREASE-CURRENT> 672,738
<NET-CHANGE-FROM-OPS> 268,568
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 613,964
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 1,275,974
<NUMBER-OF-SHARES-REDEEMED> 2,861,337
<SHARES-REINVESTED> 54,775
<NET-CHANGE-IN-ASSETS> (15,202,446)
<ACCUMULATED-NII-PRIOR> 1,821
<ACCUMULATED-GAINS-PRIOR> (323,821)
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 58,616
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 134,197
<AVERAGE-NET-ASSETS> 23,427,273
<PER-SHARE-NAV-BEGIN> 9.82
<PER-SHARE-NII> 0.26
<PER-SHARE-GAIN-APPREC> (0.08)
<PER-SHARE-DIVIDEND> 0.26
<PER-SHARE-DISTRIBUTIONS> 0
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 9.74
<EXPENSE-RATIO> 0.75
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<CIK> 0000066117
<NAME> MIDWEST TRUST (FORMERLY KNOWN AS MIDWEST INCOME TRUST)
<SERIES>
<NUMBER> 31
<NAME> INTERMEDIATE TERM GOVERNMENT INCOME FUND CLASS A
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> SEP-30-1995
<PERIOD-END> MAR-31-1995
<INVESTMENTS-AT-COST> 59,366,736
<INVESTMENTS-AT-VALUE> 59,003,044
<RECEIVABLES> 1,214,640
<ASSETS-OTHER> 6,900
<OTHER-ITEMS-ASSETS> 440
<TOTAL-ASSETS> 60,225,024
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 127,661
<TOTAL-LIABILITIES> 127,661
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 63,660,495
<SHARES-COMMON-STOCK> 5,775,289
<SHARES-COMMON-PRIOR> 6,352,767
<ACCUMULATED-NII-CURRENT> 24
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> (3,250,910)
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> (312,246)
<NET-ASSETS> 59,554,960
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 2,194,877
<OTHER-INCOME> 0
<EXPENSES-NET> 299,527
<NET-INVESTMENT-INCOME> 1,895,350
<REALIZED-GAINS-CURRENT> (988,385)
<APPREC-INCREASE-CURRENT> 1,956,375
<NET-CHANGE-FROM-OPS> 2,863,340
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 1,881,815
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 501,829
<NUMBER-OF-SHARES-REDEEMED> 1,235,219
<SHARES-REINVESTED> 155,912
<NET-CHANGE-IN-ASSETS> (4,805,720)
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> (2,262,525)
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 148,072
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 304,436
<AVERAGE-NET-ASSETS> 59,931,892
<PER-SHARE-NAV-BEGIN> 10.14
<PER-SHARE-NII> 0.32
<PER-SHARE-GAIN-APPREC> 0.17
<PER-SHARE-DIVIDEND> 0.32
<PER-SHARE-DISTRIBUTIONS> 0
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 10.31
<EXPENSE-RATIO> 0.99
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<CIK> 0000066117
<NAME> MIDWEST TRUST (FORMERLY KNOWN AS MIDWEST INCOME TRUST)
<SERIES>
<NUMBER> 33
<NAME> INTERMEDIATE TERM GOVERNMENT INCOME FUND CLASS C
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> SEP-30-1995
<PERIOD-END> MAR-31-1995
<INVESTMENTS-AT-COST> 59,366,736
<INVESTMENTS-AT-VALUE> 59,003,044
<RECEIVABLES> 1,214,640
<ASSETS-OTHER> 6,900
<OTHER-ITEMS-ASSETS> 440
<TOTAL-ASSETS> 60,225,024
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 127,661
<TOTAL-LIABILITIES> 127,661
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 63,660,495
<SHARES-COMMON-STOCK> 52,606
<SHARES-COMMON-PRIOR> 50,129
<ACCUMULATED-NII-CURRENT> 24
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> (3,250,910)
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> (312,246)
<NET-ASSETS> 542,403
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 2,194,877
<OTHER-INCOME> 0
<EXPENSES-NET> 299,527
<NET-INVESTMENT-INCOME> 1,895,350
<REALIZED-GAINS-CURRENT> (988,385)
<APPREC-INCREASE-CURRENT> 1,956,375
<NET-CHANGE-FROM-OPS> 2,863,340
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 13,511
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 24,656
<NUMBER-OF-SHARES-REDEEMED> 23,491
<SHARES-REINVESTED> 1,312
<NET-CHANGE-IN-ASSETS> (4,805,720)
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> (2,262,525)
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 148,072
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 304,436
<AVERAGE-NET-ASSETS> 477,457
<PER-SHARE-NAV-BEGIN> 10.14
<PER-SHARE-NII> 0.29
<PER-SHARE-GAIN-APPREC> 0.17
<PER-SHARE-DIVIDEND> 0.29
<PER-SHARE-DISTRIBUTIONS> 0
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 10.31
<EXPENSE-RATIO> 1.47
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<CIK> 0000066117
<NAME> MIDWEST TRUST (FORMERLY KNOWN AS MIDWEST INCOME TRUST)
<SERIES>
<NUMBER> 4
<NAME> INSTITUTIONAL GOVERNMENT INCOME FUND
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> SEP-30-1995
<PERIOD-END> MAR-31-1995
<INVESTMENTS-AT-COST> 53,173,223
<INVESTMENTS-AT-VALUE> 53,392,991
<RECEIVABLES> 59,485
<ASSETS-OTHER> 21,169
<OTHER-ITEMS-ASSETS> 52
<TOTAL-ASSETS> 53,473,697
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 49,575
<TOTAL-LIABILITIES> 49,575
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 53,454,224
<SHARES-COMMON-STOCK> 53,454,224
<SHARES-COMMON-PRIOR> 41,802,251
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> (30,102)
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 0
<NET-ASSETS> 53,424,122
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 1,178,689
<OTHER-INCOME> 0
<EXPENSES-NET> 86,918
<NET-INVESTMENT-INCOME> 1,091,771
<REALIZED-GAINS-CURRENT> 3,182
<APPREC-INCREASE-CURRENT> 0
<NET-CHANGE-FROM-OPS> 1,094,953
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 1,091,771
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 73,491,779
<NUMBER-OF-SHARES-REDEEMED> 62,738,471
<SHARES-REINVESTED> 898,665
<NET-CHANGE-IN-ASSETS> 11,655,155
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> (33,284)
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 43,460
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 91,918
<AVERAGE-NET-ASSETS> 43,547,633
<PER-SHARE-NAV-BEGIN> 1.00
<PER-SHARE-NII> 0.025
<PER-SHARE-GAIN-APPREC> 0
<PER-SHARE-DIVIDEND> 0.025
<PER-SHARE-DISTRIBUTIONS> 0
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 1.00
<EXPENSE-RATIO> 0.40
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<CIK> 0000066117
<NAME> MIDWEST TRUST (FORMERLY KNOWN AS MIDWEST INCOME TRUST)
<SERIES>
<NUMBER> 71
<NAME> GLOBAL BOND FUND CLASS A
<S> <C>
<PERIOD-TYPE> 2-MOS
<FISCAL-YEAR-END> SEP-30-1995
<PERIOD-START> JAN-31-1995
<PERIOD-END> MAR-31-1995
<INVESTMENTS-AT-COST> 4,439,480
<INVESTMENTS-AT-VALUE> 4,686,605
<RECEIVABLES> 2,767,545
<ASSETS-OTHER> 10,660
<OTHER-ITEMS-ASSETS> 953,288
<TOTAL-ASSETS> 8,418,098
<PAYABLE-FOR-SECURITIES> 2,782,300
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 23,559
<TOTAL-LIABILITIES> 2,805,859
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 5,284,885
<SHARES-COMMON-STOCK> 519,878
<SHARES-COMMON-PRIOR> 0
<ACCUMULATED-NII-CURRENT> 2,060
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 8,648
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 316,646
<NET-ASSETS> 5,585,682
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 40,833
<OTHER-INCOME> 0
<EXPENSES-NET> 9,055
<NET-INVESTMENT-INCOME> 31,778
<REALIZED-GAINS-CURRENT> 40,898
<APPREC-INCREASE-CURRENT> 316,646
<NET-CHANGE-FROM-OPS> 389,322
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 29,574
<DISTRIBUTIONS-OF-GAINS> 32,094
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 514,238
<NUMBER-OF-SHARES-REDEEMED> 0
<SHARES-REINVESTED> 5,640
<NET-CHANGE-IN-ASSETS> 5,612,239
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 0
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 4,693
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 32,407
<AVERAGE-NET-ASSETS> 4,394,587
<PER-SHARE-NAV-BEGIN> 10.00
<PER-SHARE-NII> 0.12
<PER-SHARE-GAIN-APPREC> 0.74
<PER-SHARE-DIVIDEND> 0.06
<PER-SHARE-DISTRIBUTIONS> 0.06
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 10.74
<EXPENSE-RATIO> 1.27
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<CIK> 0000066117
<NAME> MIDWEST TRUST (FORMERLY KNOWN AS MIDWEST INCOME TRUST)
<SERIES>
<NUMBER> 73
<NAME> GLOBAL BOND FUND CLASS C
<S> <C>
<PERIOD-TYPE> 2-MOS
<FISCAL-YEAR-END> SEP-30-1995
<PERIOD-START> JAN-31-1995
<PERIOD-END> MAR-31-1995
<INVESTMENTS-AT-COST> 4,439,480
<INVESTMENTS-AT-VALUE> 4,686,605
<RECEIVABLES> 2,767,545
<ASSETS-OTHER> 10,660
<OTHER-ITEMS-ASSETS> 953,288
<TOTAL-ASSETS> 8,418,098
<PAYABLE-FOR-SECURITIES> 2,782,300
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 23,559
<TOTAL-LIABILITIES> 2,805,859
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 5,284,885
<SHARES-COMMON-STOCK> 2,475
<SHARES-COMMON-PRIOR> 0
<ACCUMULATED-NII-CURRENT> 2,060
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 8,648
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 316,646
<NET-ASSETS> 26,557
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 40,833
<OTHER-INCOME> 0
<EXPENSES-NET> 9,055
<NET-INVESTMENT-INCOME> 31,778
<REALIZED-GAINS-CURRENT> 40,898
<APPREC-INCREASE-CURRENT> 316,646
<NET-CHANGE-FROM-OPS> 389,322
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 144
<DISTRIBUTIONS-OF-GAINS> 156
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 2448
<NUMBER-OF-SHARES-REDEEMED> 0
<SHARES-REINVESTED> 27
<NET-CHANGE-IN-ASSETS> 5,612,239
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 0
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 4,693
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 32,407
<AVERAGE-NET-ASSETS> 4,434
<PER-SHARE-NAV-BEGIN> 10.00
<PER-SHARE-NII> 0.08
<PER-SHARE-GAIN-APPREC> 0.77
<PER-SHARE-DIVIDEND> 0.06
<PER-SHARE-DISTRIBUTIONS> 0.06
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 10.73
<EXPENSE-RATIO> 1.95
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
