LETTER FROM THE PRESIDENT
==============================================================================
==============================================================================
Photographic image of: Robert H. Leshner
Dear Fellow Shareholders:
We are pleased to present the unaudited semi-annual report for the Midwest
Trust for the six months ending March 31, 1996.
Even though recent economic reports have been mixed, there is an overall bias
toward moderate economic growth with little inflationary pressure. During the
first quarter of 1996, equity and bond market performance was characterized by
uncertainty and volatility. Daily fluctuations caused growing investor
concern; even so, overall performance remained in a fairly steady range. The
release of a stronger than expected March employment report and subsequent
market corrections caused increased volatility which continued through
quarter-end.
We do not anticipate much Congressional activity regarding the budget before
the November election. In addition, we do not believe the Federal Reserve will
raise rates this year, as the Central Bank typically does not practice
restrictive monetary policy in an election year. We believe that bonds are
fairly attractive at current levels and continue to have a fairly positive
longer-term outlook -- slow economic growth with tame inflation and a firm
dollar.
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 yields for March 1996 were
5.45% and 5.07% for Class A and Class C shares, respectively. Its total return
for Class A shares (excluding the impact of the 2% maximum front-end sales
load) for the twelve months ended March 31, 1996 was 8.90%.
The ADJUSTABLE RATE U.S. GOVERNMENT SECURITIES FUND seeks high current income
consistent with low volatility of principal. The Fund's shares have been
assigned the highest rating of "AAAf" from Standard & Poor's Ratings Group.
This rating is a current assessment of the overall credit quality of the Fund.
The Fund's yields for March 1996 were 5.40% and 4.98% for Class A shares and
Class C shares, respectively, and its total return for Class A shares
(excluding the impact of the 2% maximum front-end sales load) for the twelve
months ended March 31, 1996 was 6.98%.
The GLOBAL BOND FUND seeks high total return through both income and capital
appreciation. The Fund provides investors with an opportunity to diversify
globally, as many are recognizing the importance of adding a global component
to their portfolios. The Fund's total return for its Class A shares (excluding
the impact of the 4% maximum front-end sales load) since its inception on
February 1, 1995 was 8.87%.
While there are compelling arguments for either a continued economic rebound
or slowing growth, we are confident that the Midwest Group of Funds are
well-positioned for the current market environment. Despite current
volatility, we are optimistic in our outlook for the remainder of 1996.
Inflation appears to remain in check, and profits should continue to grow
during the second half of the year.
The Midwest Group remains committed to providing conservative and quality
opportunities to help investors meet their financial goals. By putting our
values to work for you on a continuous basis, we hope to ensure not only the
success of our future, but most importantly, the success of yours.
Sincerely,
/s/Robert H. Leshner
Robert H. Leshner
President
<PAGE>
<TABLE>
STATEMENTS OF ASSETS AND LIABILITIES
MARCH 31, 1996 (UNAUDITED)
<CAPTION>
===================================================================================================================
MONEY MARKET FUNDS
===================================================================================================================
SHORT TERM INSTITUTIONAL
GOVERNMENT GOVERNMENT
INCOME FUND INCOME FUND
- -------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
ASSETS
>
Investments in securities:
At acquisition cost.................................................... $ 34,453,702 $ 26,276,352
=============== ===============
At amortized cost...................................................... $ 34,701,424 $ 26,419,632
=============== ===============
At value (Note 1) ..................................................... $ 34,701,424 $ 26,419,632
Investments in repurchase agreements (Note 1)............................. 48,709,000 2,633,000
Cash ..................................................................... 831 632
Interest receivable....................................................... 297,369 37,163
Receivable for securities sold............................................ 5,000,000 --
Receivable from affiliates (Note 3)....................................... -- 5,059
Other assets.............................................................. 7,137 3,766
--------------- ---------------
TOTAL ASSETS........................................................... 88,715,761 29,099,252
--------------- ---------------
LIABILITIES
Dividends payable......................................................... 5,263 21,669
Payable to affiliates (Note 3)............................................ 52,219 4,000
Other accrued expenses and liabilities.................................... 12,017 4,200
--------------- ---------------
TOTAL LIABILITIES ..................................................... 69,499 29,869
--------------- ---------------
NET ASSETS .............................................................. $ 88,646,262 $ 29,069,383
=============== ===============
Net assets consist of:
Capital shares............................................................ $ 88,646,262 $ 29,095,229
Accumulated net realized losses from security transactions ............... -- ( 25,846 )
--------------- ---------------
Net assets ............................................................... $ 88,646,262 $ 29,069,383
=============== ===============
Shares of beneficial interest outstanding (unlimited number of shares
authorized, no par value) (Note 4) .................................... 88,646,262 29,095,229
=============== ===============
Net asset value, offering price and redemption price per share (Note 1) .. $ 1.00 $ 1.00
=============== ===============
<FN>
See accompanying notes to financial statements.
</FN>
</TABLE>
<PAGE>
<TABLE>
STATEMENTS OF ASSETS AND LIABILITIES
MARCH 31, 1996 (UNAUDITED)
<CAPTION>
===================================================================================================================
GOVERNMENT BOND FUNDS
===================================================================================================================
ADJUSTABLE
INTERMEDIATE RATE U.S.
TERM GOVERNMENT
GOVERNMENT SECURITIES
INCOME FUND FUND
- -------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
ASSETS
Investments in securities:
At acquisition cost.................................................... $ 56,091,398 $ 12,600,542
=============== ===============
At amortized cost ..................................................... $ 56,043,265 $ 12,600,542
=============== ===============
At value (Note 1) ..................................................... $ 56,222,017 $ 12,753,884
Investments in repurchase agreements (Note 1)............................. 7,908,000 324,000
Cash ..................................................................... 811 --
Interest receivable ...................................................... 931,342 126,631
Receivable for capital shares sold........................................ 17,261 16,916
Receivable for principal paydowns......................................... -- 160,082
Receivable from affiliates (Note 3)....................................... -- 2,756
Other assets.............................................................. 6,460 19,479
--------------- ---------------
TOTAL ASSETS .......................................................... 65,085,891 13,403,748
--------------- ---------------
LIABILITIES
Payable for capital shares redeemed ...................................... 41,392 49,046
Dividends payable ........................................................ 33,054 8,347
Payable to affiliates (Note 3) ........................................... 35,282 6,250
Payable for securities purchased.......................................... 1,980,625 --
Bank overdraft............................................................ -- 1,470
Other accrued expenses and liabilities.................................... 8,850 4,550
--------------- ---------------
TOTAL LIABILITIES ..................................................... 2,099,203 69,663
--------------- ---------------
NET ASSETS .............................................................. $ 62,986,688 $ 13,334,085
=============== ===============
Net assets consist of:
Capital shares ........................................................... $ 65,026,013 $ 14,442,066
Accumulated net realized losses from security transactions................ ( 2,218,077 ) ( 1,261,323 )
Net unrealized appreciation on investments ............................... 178,752 153,342
--------------- ---------------
Net assets ............................................................... $ 62,986,688 $ 13,334,085
=============== ===============
PRICING OF CLASS A SHARES
Net assets attributable to Class A shares ................................ $ 62,283,279 $ 13,274,669
=============== ===============
Shares of beneficial interest outstanding (unlimited
number of shares authorized, no par value) (Note 4) ................... 5,878,838 1,351,317
=============== ===============
Net asset value and redemption price per share (Note 1)................... $ 10.59 $ 9.82
=============== ===============
Maximum offering price per share (Note 1) ................................ $ 10.81 $ 10.02
=============== ===============
PRICING OF CLASS C SHARES
Net assets attributable to Class C shares ................................ $ 703,409 59,416
=============== ===============
Shares of beneficial interest outstanding (unlimited
number of shares authorized, no par value) (Note 4).................... 66,393 6,050
=============== ===============
Net asset value, offering price and redemption price per share (Note 1)... $ 10.59 $ 9.82
=============== ===============
<FN>
See accompanying notes to financial statements.
</FN>
</TABLE>
<PAGE>
<TABLE>
STATEMENT OF ASSETS AND LIABILITIES
MARCH 31, 1996 (UNAUDITED)
<CAPTION>
===================================================================================================================
GLOBAL BOND
FUND
- -------------------------------------------------------------------------------------------------------------------
<S> <C>
ASSETS
Investments in securities and time deposits:
At acquisition cost...................................................................... $ 17,474,370
===============
At amortized cost ....................................................................... $ 17,474,370
===============
At value (Note 1) ....................................................................... $ 17,208,158
Cash denominated in foreign currencies (At cost $88,918).................................... 88,897
Cash........................................................................................ 2,166,631
Interest receivable ........................................................................ 475,819
Receivable for capital shares sold.......................................................... 500,125
Net unrealized appreciation on forward foreign currency exchange contracts (Note 6)......... 24,119
Other assets................................................................................ 3,345
---------------
TOTAL ASSETS ............................................................................ 20,467,094
---------------
LIABILITIES
Payable for capital shares redeemed......................................................... 673
Payable to affiliates (Note 3) ............................................................. 18,650
Other accrued expenses and liabilities...................................................... 12,967
---------------
TOTAL LIABILITIES ....................................................................... 32,290
---------------
NET ASSETS ................................................................................ $ 20,434,804
===============
Net assets consist of:
Capital shares ............................................................................. $ 20,485,504
Undistributed net investment income......................................................... 233,395
Accumulated net realized gains from security transactions................................... 414,459
Accumulated net realized losses from foreign currency transactions ......................... ( 455,328 )
Net unrealized depreciation on investments and foreign currencies........................... ( 243,226 )
---------------
Net assets ................................................................................. $ 20,434,804
===============
PRICING OF CLASS A SHARES
Net assets attributable to Class A shares .................................................. $ 14,221,524
===============
Shares of beneficial interest outstanding (unlimited number of shares authorized,
no par value) (Note 4).................................................................. 1,346,097
===============
Net asset value and redemption price per share (Note 1)..................................... $ 10.57
===============
Maximum offering price per share (Note 1) .................................................. $ 11.01
===============
PRICING OF CLASS C SHARES
Net assets attributable to Class C shares .................................................. $ 6,213,280
===============
Shares of beneficial interest outstanding (unlimited number of shares authorized,
no par value) (Note 4)................................................................... 592,013
===============
Net asset value, offering price and redemption price per share (Note 1)..................... $ 10.50
===============
<FN>
See accompanying notes to financial statements.
</FN>
</TABLE>
<PAGE>
<TABLE>
STATEMENTS OF OPERATIONS
FOR THE SIX MONTHS ENDED MARCH 31, 1996 (UNAUDITED)
<CAPTION>
===================================================================================================================
MONEY MARKET FUNDS
===================================================================================================================
SHORT TERM INSTITUTIONAL
GOVERNMENT GOVERNMENT
INCOME FUND INCOME FUND
- -------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
INVESTMENT INCOME
Interest income ....................................................... $ 2,374,925 $ 967,274
--------------- ---------------
EXPENSES
Investment advisory fees (Note 3) ..................................... 206,184 34,736
Ttransfer agent fees (Note 3) ......................................... 89,927 6,000
Distribution expenses (Note 3)......................................... 31,450 2,655
Accounting services fees (Note 3)...................................... 18,000 18,000
Postage and supplies................................................... 32,903 5,404
Custodian fees ........................................................ 9,767 4,619
Registration fees...................................................... 9,641 6,527
Professional fees ..................................................... 6,162 3,761
Insurance expense...................................................... 4,518 2,446
Reports to shareholders ............................................... 9,006 426
Trustees' fees and expenses ........................................... 1,917 1,917
Other expenses ........................................................ 6,610 1,525
--------------- ---------------
TOTAL EXPENSES....................................................... 426,085 88,016
Fees waived by the Adviser (Note 3) ................................... -- ( 18,521 )
--------------- ---------------
NET EXPENSES......................................................... 426,085 69,495
--------------- ---------------
NET INVESTMENT INCOME .................................................... 1,948,840 897,779
--------------- ---------------
NET REALIZED GAINS FROM SECURITY TRANSACTIONS ........................... -- 2,594
--------------- ---------------
NET INCREASE IN NET ASSETS FROM OPERATIONS .............................. $ 1,948,840 $ 900,373
=============== ===============
<FN>
See accompanying notes to financial statements.
</FN>
</TABLE>
<PAGE>
<TABLE>
STATEMENTS OF OPERATIONS FOR THE SIX MONTHS ENDED MARCH 31, 1996 (UNAUDITED)
<CAPTION>
===================================================================================================================
GOVERNMENT BOND FUNDS
===================================================================================================================
ADJUSTABLE
INTERMEDIATE RATE U.S.
TERM GOVERNMENT
GOVERNMENT SECURITIES
INCOME FUND FUND
- -------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
INVESTMENT INCOME
Interest income ....................................................... $ 1,939,913 $ 671,210
--------------- ---------------
EXPENSES
Investment advisory fees (Note 3)...................................... 143,808 49,747
Accounting services fees (Note 3)...................................... 25,500 25,500
Distribution expenses, Class A (Note 3)................................ 38,942 12,495
Distribution expenses, Class C (Note 3)................................ 34 18
Transfer agent fees, Class A (Note 3).................................. 27,195 7,358
Transfer agent fees, Class C (Note 3).................................. 6,000 6,000
Postage and supplies................................................... 21,651 7,229
Registration fees, Common.............................................. 2,644 3,009
Registration fees, Class A............................................. 5,307 4,455
Registration fees, Class C............................................. 2,750 1,208
Professional fees...................................................... 6,287 3,943
Custodian fees......................................................... 4,082 3,130
Insurance expense...................................................... 3,350 1,580
Trustees' fees and expenses............................................ 1,917 1,917
Reports to shareholders................................................ 3,696 1,065
Other expenses......................................................... 3,634 11,432
--------------- ---------------
TOTAL EXPENSES....................................................... 296,797 140,086
Fees waived and/or expenses reimbursed by the Adviser (Note 3)......... ( 6,283 ) ( 65,301 )
--------------- ---------------
NET EXPENSES......................................................... 290,514 74,785
--------------- ---------------
NET INVESTMENT INCOME .................................................... 1,649,399 596,425
--------------- ---------------
REALIZED AND UNREALIZED GAINS (LOSSES) ON INVESTMENTS
Net realized gains from security transactions ......................... 976,921 59,991
Net change in unrealized appreciation/depreciation on investments ..... ( 1,839,666 ) 3,977
--------------- ---------------
NET REALIZED AND UNREALIZED GAINS (LOSSES) ON INVESTMENTS ............... ( 862,745 ) 63,968
--------------- ---------------
NET INCREASE IN NET ASSETS FROM OPERATIONS .............................. $ 786,654 $ 660,393
=============== ===============
<FN>
See accompanying notes to financial statements.
</FN>
</TABLE>
<PAGE>
<TABLE>
STATEMENT OF OPERATIONS FOR
THE SIX MONTHS ENDED MARCH 31, 1996 (UNAUDITED)
<CAPTION>
===================================================================================================================
GLOBAL BOND
FUND
- -------------------------------------------------------------------------------------------------------------------
<S> <C>
INVESTMENT INCOME
Interest income (net of foreign withholding taxes of $18,336) ........................... $ 599,706
---------------
EXPENSES
Investment advisory fees (Note 3)........................................................ 68,554
Accounting services fees (Note 3)........................................................ 28,500
Custodian fees........................................................................... 17,018
Distribution expenses, Class A (Note 3).................................................. 4,112
Distribution expenses, Class C (Note 3).................................................. 10,252
Transfer agent fees, Class A (Note 3).................................................... 6,000
Transfer agent fees, Class C (Note 3).................................................... 6,000
Professional fees........................................................................ 4,361
Registration fees, Common................................................................ 3,334
Registration fees, Class A............................................................... 2,321
Registration fees, Class C............................................................... 2,321
Postage and supplies..................................................................... 3,280
Trustees' fees and expenses.............................................................. 1,917
Insurance expense........................................................................ 1,396
Reports to shareholders.................................................................. 839
Other expenses........................................................................... 4,427
---------------
TOTAL EXPENSES......................................................................... 164,632
Fees waived and expenses reimbursed by the Adviser (Note 3).............................. ( 15,222 )
---------------
NET EXPENSES........................................................................... 149,410
---------------
NET INVESTMENT INCOME ...................................................................... 450,296
---------------
REALIZED AND UNREALIZED GAINS (LOSSES) FROM INVESTMENTS AND
FOREIGN CURRENCY (NOTE 5)
Net realized gains (losses) from:
Security transactions ................................................................. 256,541
Foreign currency transactions.......................................................... ( 348,773 )
Net change in unrealized appreciation/depreciation on:
Investments ........................................................................... ( 141,613 )
Translation of assets and liabilities in foreign currencies............................ ( 198,094 )
---------------
NET REALIZED AND UNREALIZED LOSSES FROM INVESTMENTS AND FOREIGN CURRENCY ................... ( 431,939 )
---------------
NET INCREASE IN NET ASSETS FROM OPERATIONS ................................................ $ 18,357
===============
<FN>
See accompanying notes to financial statements.
</FN>
</TABLE>
<PAGE>
<TABLE>
STATEMENTS OF CHANGES IN NET ASSETS FOR THE PERIODS ENDED
MARCH 31, 1996 AND SEPTEMBER 30, 1995
<CAPTION>
===================================================================================================================
MONEY MARKET FUNDS
===================================================================================================================
SHORT TERM INSTITUTIONAL
GOVERNMENT GOVERNMENT
INCOME FUND INCOME FUND
SIX MONTHS YEAR SIX MONTHS YEAR
ENDED ENDED ENDED ENDED
MAR. 31, 1996 SEPT. 30, MAR. 31, 1996 SEPT. 30,
(UNAUDITED) 1995 (UNAUDITED) 1995
- -------------------------------------------------------------------------------------------------------------------
FROM OPERATIONS:
<S> <C> <C> <C> <C>
Net investment income........................ $ 1,948,840 $ 3,888,736 $ 897,779 $ 2,286,308
Net realized gains from security transactions -- 2,227 2,594 4,844
------------ ------------- ------------- ------------
Net increase in net assets from operations...... 1,948,840 3,890,963 900,373 2,291,152
------------ ------------- ------------- ------------
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income .................. ( 1,948,840) (3,888,736) ( 897,779) ( 2,286,308)
From net realized gains from security
transactions.............................. ( 2,227) (4,105) -- --
------------ ------------- ------------- ------------
Decrease in net assets from
distributions to shareholders ............... ( 1,951,067) ( 3,892,841) ( 897,779) ( 2,286,308)
------------ ------------- ------------- ------------
FROM CAPITAL SHARE TRANSACTIONS (NOTE 4):
Proceeds from shares sold ................... 144,615,313 306,531,676 78,678,260 152,663,812
Net asset value of shares issued in
reinvestment of distributions to
shareholders............................... 1,866,066 3,627,273 740,239 1,869,015
Payments for shares redeemed................. (144,974,026) (312,723,860) ( 86,360,340) (160,298,008)
------------ ------------- ------------- ------------
Net increase (decrease) in net assets from
capital share transactions................... 1,507,353 ( 2,564,911) ( 6,941,841) ( 5,765,181)
------------ ------------- ------------- ------------
TOTAL INCREASE (DECREASE) IN NET ASSETS ...... 1,505,126 ( 2,566,789) ( 6,939,247) ( 5,760,337)
NET ASSETS:
Beginning of period.......................... 87,141,136 89,707,925 36,008,630 41,768,967
------------ ------------- ------------- ------------
End of period................................ $ 88,646,262 $ 87,141,136 $ 29,069,383 $ 36,008,630
============ ============= ============= ============
<FN>
See accompanying notes to financial statements.
</FN>
</TABLE>
<PAGE>
<TABLE>
STATEMENTS OF CHANGES IN NET ASSETS FOR THE PERIODS ENDED
MARCH 31, 1996 AND SEPTEMBER 30, 1995
<CAPTION>
===================================================================================================================
GOVERNMENT BOND FUNDS
===================================================================================================================
INTERMEDIATE TERM ADJUSTABLE RATE
GOVERNMENT U.S. GOVERNMENT
INCOME FUND SECURITIES FUND
SIX MONTHS YEAR SIX MONTHS YEAR
ENDED ENDED ENDED ENDED
MAR. 31, 1996 SEPT. 30, MAR. 31, 1996 SEPT. 30,
(UNAUDITED) 1995 (UNAUDITED) 1995
- -------------------------------------------------------------------------------------------------------------------
FROM OPERATIONS:
<S> <C> <C> <C> <C>
Net investment income ....................... $ 1,649,399 $ 3,691,139 $ 596,425 $ 1,249,966
Net realized gains (losses) from security
transactions............................. 976,921 ( 932,473) 59,991 ( 997,493)
Net change in unrealized
appreciation/depreciation on investments... ( 1,839,666) 4,287,039 3,977 743,284
------------ ------------- ------------- ------------
Net increase in net assets from operations ..... 786,654 7,045,705 660,393 995,757
------------ ------------- ------------- ------------
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income, Class A ......... ( 1,632,143) ( 3,660,758) ( 594,542) ( 1,250,247)
From net investment income, Class C ......... ( 17,256) ( 30,381) ( 1,883) ( 1,540)
------------ ------------- ------------- ------------
Decrease in net assets from distributions to
shareholders................................ ( 1,649,399) ( 3,691,139) ( 596,425) ( 1,251,787)
------------ ------------- ------------- ------------
FROM CAPITAL SHARE TRANSACTIONS (NOTE 4):
CLASS A
Proceeds from shares sold ................... 14,329,727 13,539,608 6,351,279 17,065,780
Net asset value of shares issued in
reinvestment of distributions to
shareholders............................... 1,400,586 3,085,214 525,116 1,122,368
Payments for shares redeemed ................ ( 9,565,164) ( 27,372,364) ( 14,417,715) ( 34,751,708)
------------ ------------- ------------- ------------
Net increase (decrease) in net assets
from Class A share transactions ............. 6,165,149 ( 10,747,542) ( 7,541,320) ( 16,563,560)
------------ ------------- ------------- ------------
CLASS C
Proceeds from shares sold ................... 184,120 438,070 16,041 85,878
Net asset value of shares issued in
reinvestment of distributions to
shareholders............................... 16,516 29,534 1,700 1,510
Payments for shares redeemed................. ( 83,388) ( 410,675) ( 45,023) ( 1,007)
------------ ------------- ------------- ------------
Net increase (decrease) in net assets
from Class C share transactions ............. 117,248 56,929 ( 27,282) 86,381
------------ ------------- ------------- ------------
Net increase (decrease) in net assets from capital
share transactions........................... 6,282,397 ( 10,690,613) ( 7,568,602) ( 16,477,179)
------------ ------------- ------------- ------------
TOTAL INCREASE (DECREASE) IN NET ASSETS ....... 5,419,652 ( 7,336,047) ( 7,504,634) ( 16,733,209)
NET ASSETS:
Beginning of period.......................... 57,567,036 64,903,083 20,838,719 37,571,928
------------ ------------- ------------- ------------
End of period................................ $ 62,986,688 $ 57,567,036 $ 13,334,085 $ 20,838,719
============ ============= ============= ============
UNDISTRIBUTED NET INVESTMENT INCOME ............ $ -- $ -- $ -- $ --
============ ============= ============= ============
<FN>
See accompanying notes to financial statements.
</FN>
</TABLE>
<PAGE>
<TABLE>
STATEMENTS OF CHANGES IN NET ASSETS FOR THE PERIODS ENDED
MARCH 31, 1996 AND SEPTEMBER 30, 1995
<CAPTION>
===================================================================================================================
GLOBAL BOND
FUND
SIX MONTHS
ENDED PERIOD
MAR. 31, 1996 ENDED
(UNAUDITED) SEPT. 30, 1995(A)
- -------------------------------------------------------------------------------------------------------------------
FROM OPERATIONS:
<S> <C> <C>
Net investment income ................................................. $ 450,296 $ 254,441
Net realized gains from security transactions ......................... 256,541 157,918
Net realized losses from foreign currency transactions................. ( 348,773 ) ( 106,555 )
Net change in unrealized appreciation/depreciation on investments...... ( 141,613 ) 119,054
Net change in unrealized appreciation/depreciation on translation of assets
and liabilities in foreign currencies................................ ( 198,094 ) ( 22,573 )
--------------- ---------------
Net increase in net assets from operations ............................... 18,357 402,285
--------------- ---------------
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income, Class A ................................... ( 173,473 ) ( 232,249 )
From net investment income, Class C ................................... ( 51,783 ) ( 13,837 )
--------------- ---------------
Decrease in net assets from distributions to shareholders ................ ( 225,256 ) ( 246,086 )
--------------- ---------------
FROM CAPITAL SHARE TRANSACTIONS (NOTE 4):
CLASS A
Proceeds from shares sold ............................................. 1,594,906 13,448,590
Net asset value of shares issued in reinvestment of distributions to
shareholders....................................................... 167,215 226,752
Payments for shares redeemed .......................................... ( 698,467 ) ( 560,630 )
--------------- ---------------
Net increase in net assets from Class A share transactions ............... 1,063,654 13,114,712
--------------- ---------------
CLASS C
Proceeds from shares sold ............................................. 1,804,116 4,554,154
Net asset value of shares issued in reinvestment of distributions to
shareholders........................................................ 50,833 13,614
Payments for shares redeemed........................................... ( 91,944 ) ( 23,635 )
--------------- ---------------
Net increase in net assets from Class C share transactions ............... 1,763,005 4,544,133
--------------- ---------------
Net increase in net assets from capital share transactions................ 2,826,659 17,658,845
--------------- ---------------
TOTAL INCREASE IN NET ASSETS ............................................ 2,619,760 17,815,044
NET ASSETS:
Beginning of period.................................................... 17,815,044 --
--------------- ---------------
End of period.......................................................... $ 20,434,804 $ 17,815,044
=============== ===============
UNDISTRIBUTED NET INVESTMENT INCOME ...................................... $ 233,395 $ 8,355
=============== ===============
<FN>
(A)Represents the period from the start of business (February 1, 1995) through
September 30, 1995.
See accompanying notes to financial statements.
</FN>
</TABLE>
<PAGE>
<TABLE>
SHORT TERM GOVERNMENT INCOME FUND
FINANCIAL HIGHLIGHTS
<CAPTION>
===================================================================================================================
PER SHARE DATA FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD
===================================================================================================================
SIX MONTHS
ENDED
MAR. 31, YEAR ENDED SEPTEMBER 30,
1996
(UNAUDITED) 1995 1994 1993 1992 1991
- -------------------------------------------------------------------------------------------------------------------
<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
--------- --------- --------- --------- --------- ----------
Net investment income ........................... .023 0.046 0.027 0.022 0.035 0.059
--------- --------- --------- --------- --------- ----------
Dividends from net investment income............. ( .023 ) ( 0.046) ( 0.027) ( 0.022 ) ( 0.035 ) ( 0.059 )
--------- --------- --------- --------- --------- ----------
Net asset value at end of period................. $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
========= ========= ========= ========= ========= ==========
Total return .................................... 4.57%(A) 4.69% 2.72% 2.24% 3.55% 6.06%
========= ========= ========= ========= ========= ==========
Net assets at end of period (000's) ............. $88,646 $ 87,141 $ 89,708 $96,962 $91,519 $101,535
--------- --------- --------- --------- --------- ----------
Ratio of expenses to average net assets ......... 0.99%(A) 0.99% 0.99% 0.99% 0.99% 0.99%
Ratio of net investment income
to average net assets ........................ 4.47%(A) 4.59% 2.69% 2.22% 3.51% 5.90%
- -------------------------------------------------------------------------------------------------------------------
<FN>
(A)Annualized.
See accompanying notes to financial statements.
</FN>
</TABLE>
<PAGE>
<TABLE>
INSTITUTIONAL GOVERNMENT INCOME FUND
FINANCIAL HIGHLIGHTS
<CAPTION>
===================================================================================================================
PER SHARE DATA FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD
===================================================================================================================
SIX MONTHS
ENDED
MAR. 31, YEAR ENDED SEPTEMBER 30,
1996
(UNAUDITED) 1995 1994 1993 1992 1991
- -------------------------------------------------------------------------------------------------------------------
<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
--------- --------- --------- --------- --------- ----------
Net investment income............................ .026 0.053 0.034 0.029 0.040 0.065
--------- --------- --------- --------- --------- ----------
Dividends from net investment income............. ( .026 ) ( 0.053) ( 0.034) ( 0.029 ) ( 0.040 ) ( 0.065 )
--------- --------- --------- --------- --------- ----------
Net asset value at end of period................. $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
========= ========= ========= ========= ========= ==========
Total return..................................... 5.21%(B) 5.42% 3.43% 2.96% 4.08% 6.61%
========= ========= ========= ========= ========= ==========
Net assets at end of period (000's) ............. $29,069 $ 36,009 $ 41,769 $34,610 $43,432 $ 62,313
========= ========= ========= ========= ========= ==========
Ratio of expenses to average net assets(A) ...... 0.40%(B) 0.40% 0.40% 0.40% 0.37% 0.35%
Ratio of net investment income
to average net assets ........................ 5.17%(B) 5.30% 3.41% 2.92% 4.04% 6.50%
- -------------------------------------------------------------------------------------------------------------------
<FN>
(A)Absent fee waivers by the Adviser, the ratios of expenses to average net
assets would have been 0.51%(B), 0.42%, 0.42%, 0.48%, 0.43% and 0.36% for
the periods ended March 31, 1996 and September 30, 1995, 1994, 1993, 1992
and 1991, respectively (Note 3).
(B)Annualized.
See accompanying notes to financial statements.
</FN>
</TABLE>
<PAGE>
<TABLE>
INTERMEDIATE TERM GOVERNMENT INCOME FUND
FINANCIAL HIGHLIGHTS - CLASS A
<CAPTION>
===================================================================================================================
PER SHARE DATA FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD
===================================================================================================================
SIX MONTHS
ENDED
MAR. 31, YEAR ENDED SEPTEMBER 30,
1996
(UNAUDITED) 1995 1994 1993 1992 1991
- -------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Net asset value at beginning of period........... $ 10.73 $ 10.14 $ 11.59 $ 11.10 $ 10.45 $ 9.85
--------- --------- --------- --------- --------- ----------
Income from investment operations:
Net investment income......................... 0.31 0.64 0.56 0.60 0.68 0.75
Net realized and unrealized gains (losses)
on investments.............................. ( 0.14 ) 0.59 ( 1.32) 0.49 0.65 0.60
--------- --------- --------- --------- --------- ----------
Total from investment operations................. 0.17 1.23 ( 0.76) 1.09 1.33 1.35
--------- --------- --------- --------- --------- ----------
Less distributions:
Dividends from net investment income.......... ( 0.31 ) ( 0.64) ( 0.56) ( 0.60 ) ( 0.68 ) ( 0.75 )
Distributions from net realized gains......... -- -- ( 0.13) -- -- --
--------- --------- --------- --------- --------- ----------
Total distributions.............................. ( 0.31 ) ( 0.64) ( 0.69) ( 0.60 ) ( 0.68 ) ( 0.75 )
--------- --------- --------- --------- --------- ----------
Net asset value at end of period................. $ 10.59 $ 10.73 $ 10.14 $ 11.59 $ 11.10 $ 10.45
========= ========= ========= ========= ========= ==========
Total return(A) ................................. 3.05%(B) 12.52% ( 6.76%) 10.15% 13.27% 14.19%
========= ========= ========= ========= ========= ==========
Net assets at end of period (000's).............. $62,283 $ 56,969 $ 64,395 $89,666 $59,290 $ 40,896
========= ========= ========= ========= ========= ==========
Ratio of expenses to average net assets.......... 0.99%(B) 0.99% 0.99% 0.99% 1.00% 1.00%
Ratio of net investment income
to average net assets......................... 5.64%(B) 6.17% 5.17% 5.31% 6.40% 7.39%
Portfolio turnover rate.......................... 102%(B) 58% 236% 255% 76% 74%
- -------------------------------------------------------------------------------------------------------------------
<FN>
(A)The total returns shown do not include the effect of applicable sales
loads.
(B)Annualized.
See accompanying notes to financial statements.
</FN>
</TABLE>
<PAGE>
<TABLE>
INTERMEDIATE TERM GOVERNMENT INCOME FUND
FINANCIAL HIGHLIGHTS - CLASS C
<CAPTION>
===================================================================================================================
PER SHARE DATA FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD
===================================================================================================================
SIX MONTHS YEAR PERIOD
ENDED ENDED ENDED
MARCH 31, 1996 SEPT. 30, SEPT. 30,
(UNAUDITED) 1995 1994(A)
- -------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Net asset value at beginning of period.................... $ 10.73 $ 10.14 $ 11.27
--------------- --------------- ---------------
Income from investment operations:
Net investment income.................................. 0.28 0.59 0.34
Net realized and unrealized gains (losses) on investments ( 0.14) 0.59 ( 1.13)
--------------- --------------- ---------------
Total from investment operations.......................... 0.14 1.18 ( 0.79 )
--------------- --------------- ---------------
Less distributions:
Dividends from net investment income................... ( 0.28 ) ( 0.59 ) ( 0.34 )
--------------- --------------- ---------------
Total distributions....................................... ( 0.28 ) ( 0.59 ) ( 0.34 )
--------------- --------------- ---------------
Net asset value at end of period.......................... $ 10.59 $ 10.73 $ 10.14
=============== =============== ===============
Total return(B) .......................................... 2.54%(D) 11.96% (10.38%)(D)
=============== =============== ===============
Net assets at end of period (000's)....................... $ 703 $ 598 $ 508
=============== =============== ===============
Ratio of expenses to average net assets(C ) .............. 1.49%(D) 1.48% 1.46%(D)
Ratio of net investment income to average net assets...... 5.14%(D) 5.60% 4.89%(D)
Portfolio turnover rate................................... 102%(D) 58% 236%(D)
- -------------------------------------------------------------------------------------------------------------------
<FN>
(A)Represents the period from initial public offering of Class C shares
(February 1, 1994) through September 30, 1994.
(B)The total returns shown do not include the effect of applicable sales
loads.
(C)Absent fee waivers and/or expense reimbursements by the Adviser, the ratios
of expenses to average net assets would have been 3.36%(D), 3.57% and
2.41%(D) for the periods ended March 31, 1996 and September 30, 1995 and
1994, respectively (Note 3).
(D)Annualized.
See accompanying notes to financial statements.
</FN>
</TABLE>
<PAGE>
<TABLE>
ADJUSTABLE RATE U.S. GOVERNMENT SECURITIES FUND
FINANCIAL HIGHLIGHTS - CLASS A
<CAPTION>
===================================================================================================================
PER SHARE DATA FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD
===================================================================================================================
SIX MONTHS YEAR YEAR PERIOD
ENDED ENDED ENDED ENDED
MARCH 31, 1996 SEPT. 30, SEPT. 30, SEPT. 30,
(UNAUDITED) 1995 1994 1993(A)
- -------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Net asset value at beginning of period ......... $ 9.78 $ 9.82 $ 10.01 $ 10.00
------------ ------------- ------------- ------------
Income from investment operations:
Net investment income ....................... 0.29 0.55 0.39 0.28
Net realized and unrealized gains (losses)
on investments............................ 0.04 ( 0.04) ( 0.18) 0.01
------------ ------------- ------------- ------------
Total from investment operations ............... 0.33 0.51 0.21 0.29
------------ ------------- ------------- ------------
Less distributions:
Dividends from net investment income......... ( 0.29) ( 0.55) ( 0.39) ( 0.28)
Distributions from net realized gains........ -- -- ( 0.01) -
------------ ------------- ------------- ------------
Total distributions ............................ ( 0.29) ( 0.55) ( 0.40) ( 0.28)
------------ ------------- ------------- ------------
Net asset value at end of period ............... $ 9.82 $ 9.78 $ 9.82 $ 10.01
============ ============= ============= ============
Total return(B) ................................ 6.85%(D) 5.33% 2.09% 4.56%(D)
============ ============= ============= ============
Net assets at end of period (000's) ............ $ 13,275 $ 20,752 $ 37,572 $ 24,400
============ ============= ============= ============
Ratio of expenses to average net assets(C) ..... 0.75%(D) 0.75% 0.68% 0.22%(D)
Ratio of net investment income to average
net assets.................................. 6.00%(D) 5.57% 3.91% 4.17%(D)
Portfolio turnover rate ........................ 25%(D) 115% 81% 170%(D)
- -------------------------------------------------------------------------------------------------------------------
<FN>
(A)Represents the period from the initial public offering of Class A shares
(February 10, 1993) through September 30, 1993.
(B)The total returns shown do not include the effect of applicable sales
loads.
(C)Absent fee waivers and/or expense reimbursements by the Adviser, the ratios
of expenses to average net assets would have been 1.34%(D), 1.21%, 0.78% and
1.18%(D) for the periods ended March 31, 1996 and September 30, 1995, 1994
and 1993, respectively (Note 3).
(D)Annualized.
See accompanying notes to financial statements.
</FN>
</TABLE>
<PAGE>
<TABLE>
ADJUSTABLE RATE U.S. GOVERNMENT SECURITIES FUND
FINANCIAL HIGHLIGHTS - CLASS C
<CAPTION>
===================================================================================================================
PER SHARE DATA FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD
===================================================================================================================
SIX MONTHS PERIOD
ENDED ENDED
MARCH 31, 1996 SEPT. 30,
(UNAUDITED) 1995(A)
- -------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Net asset value at beginning of period ................................... $ 9.78 $ 9.76
--------------- ---------------
Income from investment operations:
Net investment income ................................................. 0.27 0.22
Net realized and unrealized gains on investments ...................... 0.04 0.02
--------------- ---------------
Total from investment operations ......................................... 0.31 0.24
--------------- ---------------
Less distributions:
Dividends from net investment income................................... ( 0.27 ) ( 0.22 )
--------------- ---------------
Total distributions ...................................................... ( 0.27 ) ( 0.22 )
--------------- ---------------
Net asset value at end of period ......................................... $ 9.82 $ 9.78
=============== ===============
Total return(B) .......................................................... 6.34%(D) 5.87%(D)
=============== ===============
Net assets at end of period (000's) ...................................... $ 59 $ 86
=============== ===============
Ratio of expenses to average net assets(C) ............................... 1.25%(D) 1.24%(D)
Ratio of net investment income to average net assets ..................... 5.49%(D) 5.38%(D)
Portfolio turnover rate .................................................. 25%(D) 115%(D)
- -------------------------------------------------------------------------------------------------------------------
<FN>
(A)Represents the period from the initial public offering of Class C shares
(May 1, 1995) through September 30, 1995.
(B)The total returns shown do not include the effect of applicable sales
loads.
(C)Absent fee waivers and expense reimbursements by the Adviser, the ratio of
expenses to average net assets would have been 22.14%(D) and 18.84%(D) for
the periods ended March 31, 1996 and September 30, 1995, respectively (Note
3).
(D)Annualized.
See accompanying notes to financial statements.
</FN>
</TABLE>
<PAGE>
<TABLE>
GLOBAL BOND FUND
FINANCIAL HIGHLIGHTS - CLASS A
<CAPTION>
===================================================================================================================
PER SHARE DATA FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD
===================================================================================================================
SIX MONTHS
ENDED PERIOD
MARCH 31, 1996 ENDED
(UNAUDITED) SEPT. 30, 1995(A)
- -------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Net asset value at beginning of period.................................... $ 10.64 $ 10.00
--------------- ---------------
Income from investment operations:
Net investment income.................................................. 0.25 0.35
Net realized and unrealized gains (losses) on investments and
foreign currency................................................. ( 0.19) 0.64
--------------- ---------------
Total from investment operations.......................................... 0.06 0.99
--------------- ---------------
Less distributions:
Dividends from net investment income................................... ( 0.13 ) ( 0.35 )
--------------- ---------------
Total distributions....................................................... ( 0.13 ) ( 0.35 )
--------------- ---------------
Net asset value at end of period.......................................... $ 10.57 $ 10.64
=============== ===============
Total return(B) .......................................................... 1.00%(D) 14.89%(D)
=============== ===============
Net assets at end of period (000's)....................................... $ 14,222 $ 13,297
=============== ===============
Ratio of expenses to average net assets(C) ............................... 1.35%(D) 1.33%(D)
Ratio of net investment income to average net assets...................... 4.76%(D) 4.30%(D)
Portfolio turnover rate................................................... 194%(D) 130%(D)
- -------------------------------------------------------------------------------------------------------------------
<FN>
(A)Represents the period from initial public offering of Class A shares
(February 1, 1995) through September 30, 1995.
(B)The total returns shown do not include the effect of applicable sales
loads.
(C)Absent fee waivers and expense reimbursements by the Adviser, the ratios of
expenses to average net assets would have been 1.54%(D) and 2.47%(D) for the
periods ended March 31, 1996 and September 30, 1995, respectively (Note 3).
(D)Annualized.
See accompanying notes to financial statements.
</FN>
</TABLE>
<PAGE>
<TABLE>
GLOBAL BOND FUND
FINANCIAL HIGHLIGHTS - CLASS C
===================================================================================================================
PER SHARE DATA FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD
===================================================================================================================
SIX MONTHS
ENDED PERIOD
MARCH 31, 1996 ENDED
(UNAUDITED) SEPT. 30, 1995(A)
- -------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Net asset value at beginning of period.................................... $ 10.59 $ 10.00
--------------- ---------------
Income from investment operations:
Net investment income.................................................. 0.17 0.38
Net realized and unrealized gains (losses) on investments and
foreign currency.................................................. ( 0.16) 0.57
--------------- ---------------
Total from investment operations.......................................... 0.01 0.95
--------------- ---------------
Less distributions:
Dividends from net investment income................................... ( 0.10 ) ( 0.36 )
--------------- ---------------
Total distributions....................................................... ( 0.10 ) ( 0.36 )
--------------- ---------------
Net asset value at end of period.......................................... $ 10.50 $ 10.59
=============== ===============
Total return(B) .......................................................... .20%(D) 14.25%(D)
=============== ===============
Net assets at end of period (000's)....................................... $ 6,213 $ 4,518
=============== ===============
Ratio of expenses to average net assets(C) ............................... 2.00%(D) 1.98%(D)
Ratio of net investment income to average net assets...................... 4.11%(D) 3.70%(D)
Portfolio turnover rate................................................... 194%(D) 130%(D)
- -------------------------------------------------------------------------------------------------------------------
<FN>
(A)Represents the period from initial public offering of Class C shares
(February 1, 1995) through September 30, 1995.
(B)The total returns shown do not include the effect of applicable sales
loads.
(C)Absent fee waivers and expense reimbursements by the Adviser, the ratios of
expenses to average net assets would have been 2.06%(D) and 3.45%(D) for the
periods ended March 31, 1996 and September 30, 1995, respectively (Note 3).
(D)Annualized.
See accompanying notes to financial statements.
</FN>
</TABLE>
<PAGE>
NOTES TO FINANCIAL STATEMENTS
MARCH 31, 1996 (UNAUDITED)
==============================================================================
1. SIGNIFICANT ACCOUNTING POLICIES
The Short Term Government Income Fund, the Institutional Government Income
Fund, the Intermediate Term Government Income Fund, the Adjustable Rate U.S.
Government Securities Fund and the Global Bond Fund (collectively, the Funds)
are each a series of Midwest Trust (the Trust). The 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 each Fund.
The Short Term Government Fund invests primarily in short-term U.S. Government
obligations backed by the "full faith and credit" of the United States and
seeks high current income, consistent with protection of capital.
The Institutional Government Income Fund seeks high current income, consistent
with protection of capital, by investing primarily in short-term obligations
issued or guaranteed as to principal and interest by the United States
Government, its agencies or instrumentalities. The Fund is designed primarily
for institutions as an economical and convenient means for the investment of
short-term funds.
The Intermediate Term Government Income Fund invests primarily in U.S.
Government obligations maturing within twenty years or less with a
dollar-weighted average portfolio maturity under normal market conditions of
between three and ten years and seeks high current income, consistent with
protection of capital. To the extent consistent with the Fund's primary
objective; capital appreciation is a secondary objective.
The Adjustable Rate U.S. Government Securities Fund seeks high current income,
consistent with lower volatility of principal, by investing primarily in
mortgage-backed securities created from pools of adjustable rate mortgages
which are issued or guaranteed by the United States Government, its agencies
or instrumentalities.
The Global Bond Fund seeks high total return, through both income and capital
appreciation. The Fund invests primarily in high-grade domestic and foreign
fixed-income securities.
The Intermediate Term Government Income Fund, the Adjustable Rate U.S.
Government Securities Fund and the Global Bond Fund each offer two classes of
shares: Class A shares (sold subject to a maximum front-end sales load of 2%
for the Intermediate Term Government Income Fund and the Adjustable Rate U.S.
Government Securities Fund and 4% for the Global Bond Fund and a distribution
fee of up to .35% of average daily net assets of each Fund) 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 a Fund represents
an identical interest in the investment portfolio of such Fund and has the
same rights, except that (i) Class C shares bear the expenses of higher
distribution fees, which is expected to 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.
<PAGE>
The following is a summary of the Funds' significant accounting policies:
Securities valuation -- Short Term Government Income Fund securities and
Institutional 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 these Funds to maintain a constant net asset value per share.
Intermediate Term Government Income Fund securities, Adjustable Rate U.S.
Government Securities Fund securities and Global Bond Fund 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 foreign
securities and forward foreign currency contracts in the Global Bond Fund is
determined using spot and forward currency exchange rates, respectively,
supplied by a quotation service.
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. 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.
Share valuation -- The net asset value per share of the Short Term Government
Income Fund and the Institutional Government Income Fund is calculated daily
by dividing the total value of a Fund's assets, less liabilities, by the
number of shares outstanding. The offering price and redemption price per
share is equal to the net asset value per share.
The net asset value per share of the Intermediate Term Government Income Fund,
the Adjustable Rate U.S. Government Securities Fund and the Global Bond Fund
is also calculated daily. Net asset value per share is calculated for each
class of a Fund by dividing the total value of a Fund's assets attributable to
that class, less liabilities attributable to that class, by the number of
shares of that class outstanding. The maximum offering price of Class A shares
of the Intermediate Term Government Income Fund and the Adjustable Rate U.S.
Government Securities Fund is equal to net asset value per share plus a sales
load equal to 2.04% of the net asset value (or 2% of the offering price). The
maximum offering price of Class A shares of the Global Bond Fund is equal to
net asset value per share plus a sales load equal to 4.17% of the net asset
value (or 4% of the offering price). The offering price of Class C shares of
each Fund is equal to the net asset value per share.
The redemption price per share of Class A shares and Class C shares of the
Intermediate Term Government Income Fund, the Adjustable Rate U.S. Government
Securities Fund and the Global Bond Fund is equal to the net asset value per
share. However, Class C shares of each Fund 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 -- Interest income is accrued as earned. Discounts and
premiums on securities purchased are amortized in accordance with income tax
regulations which approximate generally accepted accounting principles.
<PAGE>
Distributions to shareholders - For the Short Term Government Income Fund, the
Institutional Government Income Fund, the Intermediate Term Government Income
Fund and the Adjustable Rate U.S. Government Securities Fund, dividends
arising from net investment income are declared daily and paid on the last
business day of each month. For the Global Bond Fund, dividends arising from
net investment income are declared and paid quarterly. With respect to 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. Income distributions and capital gain distributions are
determined in accordance with income tax regulations.
Allocations between classes -- Investment income earned by the Intermediate
Term Government Income Fund, the Adjustable Rate U.S. Government Securities
Fund and the Global Bond 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. 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.
Estimates -- The preparation of financial statements in conformity with
generally accepted accounting principles requires managment to make estimates
and assumptions that affect the reported amounts of assets and liabilities at
the date of the financial statements and the reported amounts of revenues and
expenses during the reporting period. Actual results could differ from those
estimates.
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.
<PAGE>
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) as of March 31, 1996:
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------------------------------------------
ADJUSTABLE
INTERMEDIATE RATE U.S.
TERM GOVERNMENT GLOBAL
GOVERNMENT SECURITIES BOND
INCOME FUND FUND FUND
<S> <C> <C> <C>
Gross unrealized appreciation............................. $ 1,128,524 $ 155,658 $ 394,131
Gross unrealized depreciation............................. ( 949,772 ) ( 2,316 ) ( 592,430 )
--------------- --------------- ---------------
Net unrealized appreciation. ....................... $ 178,752 $ 153,342 $ ( 198,299)
=============== =============== ===============
Federal income tax cost................................... $ 56,043,265 $ 12,600,542 $ 17,496,835
=============== =============== ===============
- -------------------------------------------------------------------------------------------------------------------
</TABLE>
As of September 30, 1995, the Institutional Government Income Fund had capital
loss carryforwards for federal income tax purposes of $28,440, none of which
will expire prior to September 30, 2001. As of September 30, 1995, 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 $2,224,265 and $1,321,314, respectively, none of which will
expire prior to September 30, 2003. The difference between financial reporting
and tax cost and capital loss amounts for the Global Bond 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, 1996, purchases and proceeds from sales
and maturities of investment securities, other than short-term investments,
amounted to $29,453,254 and $28,008,876, respectively, for the Intermediate
Term Government Income Fund, $2,325,148 and $9,168,025, respectively, for the
Adjustable Rate U.S. Government Securities Fund and $17,758,974 and
16,322,947, respectively, for the Global Bond 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.
<PAGE>
MANAGEMENT AND SUBADVISORY AGREEMENTS
Each Fund's investments are managed by the Adviser under the terms of a
Management Agreement. Under the Management Agreement, the Short Term
Government Income Fund, the Intermediate Term Government Income Fund and the
Adjustable Rate U.S. Government Securities Fund each pay 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. The Institutional Government Income 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. The Global Bond Fund pays the Adviser a fee,
which is computed and accrued daily and paid monthly, at an annual rate of .7%
of its average daily net assets up to $100,000,000 and .6% of such net assets
in excess of $100,000,000.
The Adviser retains 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 Fund's average daily net assets up to $50,000,000; .225% of
such net assets from $50,000,000 to $150,000,000; .2% of such net assets from
$150,000,000 to $250,000,000; and .1875% of such net 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 Fund.
The Adviser provides general investment supervisory services to the Global
Bond Fund. The Fund's investments are managed by Rogge Global Partners, plc,
(Rogge) under the terms of an Investment Advisory Agreement. Under the
Investment Advisory Agreement, the Adviser pays Rogge 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 $100,000,000 and .3% of such net assets in
excess of $100,000,000.
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. In order to reduce the operating expenses of the
Institutional Government Income Fund, the Adviser voluntarily waived $18,521
of its advisory fees during the six months ended March 31, 1996. In order to
reduce the operating expenses of the Intermediate Term Government Income Fund,
the Adviser voluntarily reimbursed the Fund for $6,283 of Class C expenses
during the six months ended March 31, 1996. In order to reduce the operating
expenses of the Adjustable Rate U.S. Government Securities Fund, the Adviser
voluntarily waived its entire advisory fee of $49,747 and reimbursed the Fund
for $8,583 of common operating expenses and $6,971 of Class C expenses during
the six months ended March 31, 1996. In order to reduce the operating expenses
of the Global Bond Fund, the Adviser voluntarily waived $6,473 of its advisory
fees and reimbursed the Fund for $8,749 of Class C expenses during the six
months ended March 31, 1996.
<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 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 each of the Short Term Government Income Fund and the
Institutional Government Income Fund and $21.00 per shareholder account from
each of the Intermediate Term Government Income Fund, the Adjustable Rate U.S.
Government Securities Fund and the Global Bond Fund, subject to a $1,000
minimum monthly fee for each Fund, or for each class of shares of a 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
$3,000 per month for each of the Short Term Government Income Fund and the
Institutional Government Income Fund, $4,250 per month for each of the
Intermediate Term Government Income Fund and the Adjustable Rate U.S.
Government Securities Fund, and $4,750 per month for the Global Bond Fund. In
addition, each Fund pays certain out-of-pocket expenses incurred by MGF in
obtaining valuations of such Fund's portfolio securities.
UNDERWRITING AGREEMENT
The Adviser is the Funds' principal underwriter and, as such, acts as
exclusive agent for distribution of the Funds' shares. Under the terms of the
Underwriting Agreement between the Trust and the Adviser, the Adviser earned
$1,515, $84 and $2,027 from underwriting and broker commissions on sales of
shares of the Intermediate Term Government Income Fund, the Adjustable Rate
U.S. Government Securities Fund and the Global Bond Fund, respectively, for
the six months ended March 31, 1996. In addition, the Adviser collected $393,
$334, and $884 of contingent deferred sales loads on the redemption of Class C
shares of the Intermediate Term Government Income Fund, the Adjustable Rate
U.S. Government Securities Fund and the Global Bond Fund, respectively.
<PAGE>
PLANS OF DISTRIBUTION
The Trust has a Plan of Distribution (Class A Plan) under which shares of each
Fund having one class of shares and Class A shares of each Fund having two
classes of shares may directly incur or reimburse the Adviser for expenses
related to the distribution and promotion of shares. The annual limitation for
payment of such expenses under the Class A Plan is .10% of the Institutional
Government Income Fund's average daily net assets and .35% of each of the
other Funds' average daily net assets attributable to Class A shares.
The Trust also has a Plan of Distribution (Class C Plan) under which Class C
shares of each Fund having two classes of shares may directly incur or
reimburse the Adviser for expenses related to the distribution and promotion
of 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.
<TABLE>
4. CAPITAL 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 capital
share transactions for the periods ended March 31, 1996 and September 30,
1995:
<CAPTION>
- -------------------------------------------------------------------------------------------------------------------
INTERMEDIATE TERM ADJUSTABLE RATE GLOBAL
GOVERNMENT U.S. GOVERNMENT BOND
INCOME FUND SECURITIES FUND FUND
SIX MONTHS YEAR SIX MONTHS YEAR SIX MONTHS PERIOD
ENDED ENDED ENDED ENDED ENDED ENDED
MAR. 31, 1996 SEPT. 30, MAR. 31, 1996 SEPT. 30, MAR. 31, 1996 SEPT. 30,
(UNAUDITED) 1995 (UNAUDITED) 1995 (UNAUDITED) 1995(A)
- -------------------------------------------------------------------------------------------------------------------
CLASS A
<S> <C> <C> <C> <C> <C> <C>
Shares sold......................... 1,324,360 1,296,111 647,995 1,751,161 146,325 1,280,982
Shares issued in reinvestment of
distributions to shareholders..... 129,465 297,350 53,611 115,143 15,284 20,956
Shares redeemed..................... ( 883,921) ( 2,637,294) (1,471,884) (3,571,519) (64,821) (52,629)
----------- ----------- ----------- ----------- ----------- -----------
Net increase (decrease) in shares
outstanding....................... 569,904 (1,043,833) ( 770,278) (1,705,215) 96,788 1,249,309
Shares outstanding, beginning of
period............................ 5,308,934 6,352,767 2,121,595 3,826,810 1,249,309 --
----------- ----------- ----------- ----------- ----------- -----------
Shares outstanding, end of period... 5,878,838 5,308,934 1,351,317 2,121,595 1,346,097 1,249,309
=========== =========== =========== =========== =========== ===========
CLASS C
Shares sold......................... 16,867 42,546 1,635 8,783 169,143 427,772
Shares issued in reinvestment of
distributions to shareholders..... 1,527 2,836 174 154 4,672 1,259
Shares redeemed..................... ( 7,774) ( 39,738) ( 4,593) ( 103) ( 8,641) ( 2,192)
----------- ----------- ----------- ----------- ----------- -----------
Net increase (decrease) in shares
outstanding...................... 10,620 5,644 ( 2,784) 8,834 165,174 426,839
Shares outstanding, beginning
of period........................ 55,773 50,129 8,834 -- 426,839 --
----------- ----------- ----------- ----------- ----------- -----------
Shares outstanding, end of period... 66,393 55,773 6,050 8,834 592,013 426,839
=========== =========== =========== =========== =========== ===========
- -------------------------------------------------------------------------------------------------------------------
<FN>
(A)Represents the period from the initial public offering of shares (February
1, 1995) through September 30, 1995.
</FN>
</TABLE>
<PAGE>
Share transactions for the Short Term Government Income Fund and the
Institutional Government Income Fund are identical to the dollar value of
those transactions as shown in the Statements of Changes in Net Assets.
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 those resulting
from changes in market prices of securities held. Reported net realized
foreign exchange gains or losses arise from 1) sales of foreign 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
investment securities, resulting from changes in exchange rates.
6. FORWARD FOREIGN CURRENCY EXCHANGE CONTRACTS
The Global Bond Fund enters into foreign currency exchange contracts as a way
of managing foreign exchange rate risk. The Fund may enter into these
contracts for the purchase or sale of a specific foreign currency at a fixed
price on a future date as a hedge or cross-hedge against either specific
transactions or portfolio positions. The objective of the Fund's foreign
currency hedging transactions is to reduce the risk that the U.S. dollar value
of the Fund's securities denominated in foreign currency will decline in value
due to changes in foreign currency exchange rates. All foreign currency
exchange contracts are "marked-to-market" daily at the applicable translation
rates resulting in unrealized gains or losses. Realized and unrealized gains
or losses are included in the Fund's Statement of Assets and Liabilities and
Statement of Operations. Risks may arise upon entering into these contracts
from the potential inability of counterparties to meet the terms of their
contracts and from unanticipated movements in the value of a foreign currency
relative to the U.S. dollar.
<TABLE>
At March 31, 1996, the Global Bond Fund had forward foreign currency exchange
contracts outstanding as follows:
<CAPTION>
- -------------------------------------------------------------------------------------------------------------------
NET
UNREALIZED
SETTLEMENT TO RECEIVE INITIAL MARKET APPRECIATION
DATE (TO DELIVER) VALUE VALUE (DEPRECIATION)
- -------------------------------------------------------------------------------------------------------------------
CONTRACTS TO SELL
<S> <C> <C> <C> <C> <C> <C>
4/15/96 ( 4,730,040) DEM $( 3,276,841 ) $( 3,206,174) $70,667
=============
4/26/96 ( 1,164,254) DEM ( 1,094,295 ) ( 1,094,787) ( 492)
=============
4/26/96 ( 7,030,680) DKK ( 1,234,319 ) ( 1,236,014) ( 1,695)
=============
4/15/96 ( 95,000,000) JPY ( 911,799 ) ( 889,680) 22,119
=============
4/15/96 ( 1,087,800) NLG ( 673,894 ) ( 658,866) 15,028
============= ------------- -------------- -------------
TOTAL SELL CONTRACTS ( 7,191,148 ) ( 7,085,521) 105,627
------------- ------------- -------------- -------------
CONTRACTS TO BUY
4/15/96 2,089,032 DEM 1,442,342 1,416,013 ( 26,329)
=============
4/30/96 1,552,222 DEM 1,055,000 1,052,925 ( 2,075)
=============
4/15/96 88,609,200 JPY 849,833 829,829 ( 20,004)
=============
4/26/96 500,071,001 JPY 4,716,933 4,683,833 ( 33,100)
------------- ------------- -------------- -------------
TOTAL BUY CONTRACTS 8,064,108 7,982,600 ( 81,508)
------------- -------------- -------------
NET CONTRACTS $ 872,960 $ 897,079 $ 24,119
------------- -------------- -------------
- -------------------------------------------------------------------------------------------------------------------
<FN>
DEM-German Mark
DKK-Danish Krone
JPY-Japanese Yen
NLG-Netherlands Guilder
</FN>
</TABLE>
<PAGE>
<TABLE>
SHORT TERM GOVERNMENT INCOME FUND
PORTFOLIO OF INVESTMENTS
MARCH 31, 1996 (UNAUDITED)
<CAPTION>
===================================================================================================================
PAR YIELD TO MARKET
VALUE U.S. TREASURY OBLIGATIONS-- 39.1% MATURITY(1) VALUE
- -------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
$ 5,000,000 U.S. Treasury Bills, 4/18/96.................................... 5.537% $ 4,987,486
5,000,000 U.S. Treasury Bills, 5/16/96.................................... 5.148% 4,968,844
4,000,000 U.S. Treasury Bills, 5/30/96.................................... 5.170% 3,967,222
3,000,000 U.S. Treasury Notes, 9.50%, 5/31/96............................. 5.262% 3,011,170
5,000,000 U.S. Treasury Bills, 6/6/96..................................... 5.031% 4,955,198
5,000,000 U.S. Treasury Bills, 6/20/96.................................... 5.180% 4,944,111
3,000,000 U.S. Treasury Bills, 7/11/96.................................... 5.215% 2,957,917
5,000,000 U.S. Treasury Bills, 8/8/96.................................... 5.234% 4,909,476
- -------------- -------------
$ 35,000,000 TOTAL U.S. TREASURY OBLIGATIONS
==============
(Amortized Cost $34,701,424)................................. $ 34,701,424
-------------
<CAPTION>
===================================================================================================================
FACE MARKET
AMOUNT REPURCHASE AGREEMENTS(2)-- 55.0% VALUE
- -------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
$ 3,109,000 Nesbitt Burns Securities, Inc., 5.10%, dated 3/29/96, due 4/1/96,
repurchase proceeds $3,110,321............................................... $ 3,109,000
12,300,000 Daiwa Securities America, Inc., 5.375%, dated 3/29/96, due 4/1/96,
repurchase proceeds $12,305,509.............................................. 12,300,000
8,700,000 Fuji Securities, Inc., 5.20%, dated 3/29/96, due 4/1/96,
repurchase proceeds $8,703,770............................................... 8,700,000
12,300,000 Merrill Lynch, Pierce, Fenner & Smith, Inc., 5.25%, dated 3/26/96, due 4/2/96,
repurchase proceeds $12,312,556.............................................. 12,300,000
12,300,000 Prudential Securities, Inc., 5.25%, dated 3/29/96, due 4/4/96,
repurchase proceeds $12,310,763.............................................. 12,300,000
- -------------- -------------
$ 48,709,000 TOTAL REPURCHASE AGREEMENTS ................................................... $ 48,709,000
============== -------------
TOTAL INVESTMENTS AND REPURCHASE AGREEMENTS AT VALUE--94.1% ................... $ 83,410,424
OTHER ASSETS AND LIABILITIES, NET-- 5.9% ...................................... 5,235,838
-------------
NET ASSETS-- 100.0% ........................................................... $ 88,646,262
=============
<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>
<TABLE>
INSTITUTIONAL GOVERNMENT INCOME FUND
PORTFOLIO OF INVESTMENTS
MARCH 31, 1996 (UNAUDITED)
<CAPTION>
===================================================================================================================
PAR YIELD TO MARKET
VALUE U.S. GOVERNMENT AGENCY ISSUES-- 90.9% MATURITY(1) VALUE
- -------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
$ 3,000,000 Federal Home Loan Bank Discount Notes, 4/3/96................... 5.429% $ 2,999,122
3,000,000 Federal Home Loan Mortgage Corporation Discount Notes, 4/11/96.. 5.299% 2,995,675
3,000,000 Federal National Mortgage Assoc. Discount Notes, 4/18/96........ 5.432% 2,992,534
3,000,000 Federal Home Loan Bank Discount Notes, 4/24/96.................. 5.184% 2,990,340
2,500,000 Federal Farm Credit Bank Discount Notes, 4/29/96................ 5.225% 2,490,083
3,000,000 Tennessee Valley Authority Discount Notes, 5/3/96............... 5.311% 2,986,267
2,000,000 Federal Home Loan Bank Discount Notes, 5/6/96................... 5.179% 1,990,181
2,000,000 Federal Home Loan Mortgage Corporation Discount Notes, 5/13/96.. 5.404% 1,987,680
3,000,000 Federal Home Loan Mortgage Corporation Discount Notes, 5/28/96.. 5.204% 2,975,965
2,000,000 Federal National Mortgage Assoc. Discount Notes, 7/10/96........ 5.750% 2,011,785
- -------------- -------------
$ 26,500,000 TOTAL U.S. GOVERNMENT AGENCY ISSUES
==============
(Amortized Cost $26,419,632).................................. $ 26,419,632
-------------
<CAPTION>
===================================================================================================================
FACE MARKET
AMOUNT REPURCHASE AGREEMENTS(2)-- 9.0% VALUE
- -------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
$ 2,633,000 Nesbitt Burns Securities, Inc., 5.10%, dated 3/29/96, due 4/1/96,
repurchase proceeds $2,634,119............................................... $ 2,633,000
- -------------- -------------
$ 2,633,000 TOTAL REPURCHASE AGREEMENTS ................................................... $ 2,633,000
============== -------------
TOTAL INVESTMENTS AND REPURCHASE AGREEMENTS AT VALUE-- 100.0% ................. $ 29,052,632
OTHER ASSETS AND LIABILITIES, NET-- 0.1% ...................................... 16,751
-------------
NET ASSETS-- 100.0% ........................................................... $ 29,069,383
=============
<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>
<TABLE>
INTERMEDIATE TERM GOVERNMENT INCOME FUND
PORTFOLIO OF INVESTMENTS
MARCH 31, 1996 (UNAUDITED)
<CAPTION>
===================================================================================================================
PAR MARKET
VALUE INVESTMENTS -- 89.3% VALUE
- -------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
U.S. TREASURY OBLIGATIONS -- 15.0%
$ 1,000,000 U.S. Treasury Notes, 7.75%, 2/15/01............................................ $ 1,068,437
1,000,000 U.S. Treasury Notes, 8.00%, 5/15/01............................................ 1,080,625
3,000,000 U.S. Treasury Notes, 7.875%, 8/15/01........................................... 3,231,561
2,000,000 U.S. Treasury Notes, 7.50%, 11/15/01........................................... 2,122,500
2,000,000 U.S. Treasury Notes, 5.875%, 11/15/05.......................................... 1,925,000
- -------------- -------------
$ 9,000,000 TOTAL U.S. TREASURY OBLIGATIONS
- --------------
(Amortized Cost $9,133,699).................................................. $ 9,428,123
-------------
U.S. GOVERNMENT AGENCY ISSUES -- 74.3%
$ 2,000,000 Student Loan Marketing Assoc. Notes, 6.05%, 9/14/00............................ $ 1,980,888
1,000,000 Federal National Mortgage Assoc. Notes, 6.45%, 3/26/01......................... 999,375
1,000,000 Student Loan Marketing Assoc. Medium Term Notes, 7.50%, 7/2/01................. 1,050,590
3,000,000 Federal Home Loan Bank Notes, 7.31%, 7/6/01.................................... 3,119,396
3,000,000 Federal Home Loan Bank Medium Term Notes, 8.43%, 8/1/01........................ 3,275,579
2,000,000 Federal Home Loan Bank Notes, 6.25%, 9/27/01................................... 1,980,625
1,410,000 Federal National Mortgage Assoc. Strips, 3/9/02................................ 1,329,726
2,000,000 Federal National Mortgage Assoc. Notes, 7.55%, 4/22/02......................... 2,100,328
1,000,000 Federal National Mortgage Assoc. Notes, 7.00%, 8/12/02......................... 988,939
1,000,000 Federal National Mortgage Assoc. Medium Term Notes, 6.72%, 2/25/03............. 973,620
1,000,000 Federal Home Loan Mortgage Corp. Notes, 6.60%, 3/25/03......................... 973,579
3,000,000 Federal National Mortgage Assoc. Notes, 6.20%, 7/10/03......................... 2,879,439
2,000,000 Federal National Mortgage Assoc. Notes, 6.25%, 8/12/03......................... 1,920,569
2,000,000 Federal Home Loan Mortgage Corp. Notes, 8.19%, 10/6/04......................... 2,087,822
2,000,000 Federal Home Loan Mortgage Corp. Notes, 8.53%, 11/18/04........................ 2,105,403
1,000,000 Federal National Mortgage Assoc. Notes, 8.50%, 2/1/05.......................... 1,059,344
1,000,000 Federal National Mortgage Assoc. Notes, 8.00%, 4/13/05......................... 1,016,731
1,000,000 Federal Home Loan Mortgage Corp. Notes, 7.83%, 4/13/05......................... 1,033,741
1,000,000 Federal Home Loan Mortgage Corp. Notes, 7.65%, 5/10/05......................... 1,020,403
2,000,000 Federal National Mortgage Assoc. Medium Term Notes, 6.85%, 8/22/05............. 2,028,840
2,000,000 Federal National Mortgage Assoc. Notes, 6.77%, 9/1/05.......................... 2,017,860
3,000,000 Federal Home Loan Mortgage Corp. Notes, 6.36%, 1/10/06......................... 2,867,376
3,000,000 Federal Home Loan Mortgage Corp. Notes, 6.75%, 1/19/06......................... 2,893,371
2,000,000 Federal Farm Credit Bank Medium Term Notes, 6.74%, 2/25/08..................... 1,934,800
3,000,000 Federal Home Loan Mortgage Corp. Notes, 8.57%, 10/26/09........................ 3,155,550
- -------------- -------------
$ 46,410,000 TOTAL U.S. GOVERNMENT AGENCY ISSUES
- --------------
(Amortized Cost $46,909,566)................................................. $ 46,793,894
-------------
$ 55,410,000 TOTAL INVESTMENTS AT VALUE
==============
(Amortized Cost $56,043,265)................................................. $ 56,222,017
-------------
<CAPTION>
INTERMEDIATE TERM GOVERNMENT INCOME FUND (CONTINUED)
===================================================================================================================
FACE MARKET
AMOUNT REPURCHASE AGREEMENTS(1)-- 12.5% VALUE
- -------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
$ 7,908,000 Dean Witter Reynolds, Inc., 5.15%, dated 3/29/96, due 4/1/96,
repurchase proceeds $7,911,394............................................... $ 7,908,000
- -------------- -------------
$ 7,908,000 TOTAL REPURCHASE AGREEMENTS ................................................... $ 7,908,000
============== -------------
TOTAL INVESTMENTS AND REPURCHASE AGREEMENTS AT VALUE-- 101.8% ................. $ 64,130,017
OTHER ASSETS AND LIABILITIES, NET-- (1.8)% .................................... ( 1,143,329)
-------------
NET ASSETS-- 100.0% ........................................................... $ 62,986,688
=============
<FN>
(1)Repurchase agreements are fully collateralized by U.S. Government obligations.
See accompanying notes to financial statements.
</FN>
</TABLE>
<PAGE>
<TABLE>
ADJUSTABLE RATE U.S. GOVERNMENT SECURITIES FUND
PORTFOLIO OF INVESTMENTS
MARCH 31, 1996 (UNAUDITED)
<CAPTION>
===================================================================================================================
PAR MARKET
VALUE ADJUSTABLE RATE U.S. GOVERNMENT AGENCY ISSUES(1)-- 95.7% VALUE
- -------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
$ 1,580,929 Federal National Mortgage Assoc. #70907, 7.50%, 3/1/18......................... $ 1,635,846
1,561,886 Federal Home Loan Mortgage Corp. #605793, 7.42%, 5/1/18........................ 1,592,139
3,281,693 Federal National Mortgage Assoc. #70614, 7.40%, 10/1/18........................ 3,359,896
2,353,005 Federal Home Loan Mortgage Corp. #846013, 7.90%, 6/2/22........................ 2,433,499
86,152 Government National Mortgage Assoc. #8182, 7.37%,4/20/23....................... 87,713
1,191,405 Federal Home Loan Mortgage Corp. #846071, 7.53%, 2/1/25........................ 1,229,073
2,349,851 Federal National Mortgage Assoc. #70243, 7.29%, 3/1/28......................... 2,415,718
- -------------- -------------
$ 12,404,921 TOTAL ADJUSTABLE RATE U.S. GOVERNMENT AGENCY ISSUES
==============
(Amortized Cost $12,600,542)................................................. $ 12,753,884
-------------
<CAPTION>
===================================================================================================================
FACE MARKET
AMOUNT REPURCHASE AGREEMENTS(2)-- 2.4% VALUE
- -------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
$ 324,000 Nesbitt Burns Securities, Inc., 5.00%, dated 3/29/96, due 4/1/96,
repurchase proceeds $324,135................................................. $ 324,000
- -------------- -------------
$ 324,000 TOTAL REPURCHASE AGREEMENTS ................................................... $ 324,000
============== -------------
TOTAL INVESTMENTS AND REPURCHASE AGREEMENTS AT VALUE-- 98.1% ................. $ 13,077,884
OTHER ASSETS AND LIABILITIES, NET-- 1.9% ...................................... 256,201
-------------
NET ASSETS-- 100.0% ........................................................... $ 13,334,085
=============
<FN>
(1)Rates shown are as of March 31, 1996.
(2)Repurchase agreements are fully collateralized by U.S. Government obligations.
See accompanying notes to financial statements.
</FN>
</TABLE>
<PAGE>
<TABLE>
GLOBAL BOND FUND
PORTFOLIO OF INVESTMENTS
MARCH 31, 1996 (UNAUDITED)
<CAPTION>
===================================================================================================================
PAR MARKET
VALUE INVESTMENTS -- 83.6% VALUE
- -------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
U.S. TREASURY OBLIGATIONS -- 16.1%
USD 2,255,000 U.S. Treasury Notes, 6.50%, 8/15/05...................................... $ 2,269,094
USD 1,000,000 U.S. Treasury Notes, 5.625%, 2/15/06..................................... 948,125
USD 55,000 U.S. Treasury Bonds, 6.875%, 8/15/25..................................... 55,722
-------------
TOTAL U.S. TREASURY OBLIGATIONS
(Amortized Cost $3,347,557)........................................... $ 3,272,941
-------------
GLOBAL BOND ISSUES -- 0.8%
JPY 16,000,000 International Bank For Reconstruction and Development, 4.75%, 12/20/04... $ 168,352
-------------
TOTAL GLOBAL BOND ISSUES
(Amortized Cost $194,033)............................................. $ 168,352
-------------
FOREIGN GOVERNMENT ISSUES -- 66.7%
DKK 5,210,000 Government of Denmark, 7.00%, 12/15/04................................... $ 899,907
DKK 3,350,000 Government of Denmark, 8.00%, 3/15/06.................................... 607,264
-------------
...................................................................... 1,507,171
-------------
CAD 1,100,000 Government of Canada, 9.00%, 12/1/04..................................... 879,378
CAD 770,000 Government of Canada, 8.75%, 12/1/05..................................... 607,596
-------------
...................................................................... 1,486,974
-------------
ITL 1,495,000,000 Government of Italy, 10.50%, 4/1/05..................................... 946,747
ITL 2,060,000,000 Government of Italy, 10.50%, 9/1/05..................................... 1,302,579
-------------
...................................................................... 2,249,326
-------------
JPY 20,000,000 Republic of Austria, 4.50%, 9/28/05...................................... 205,758
-------------
IEP 335,000 Republic of Ireland, 6.25%, 10/18/04..................................... 472,804
-------------
DEM 575,000 Federal Republic of Germany, 6.50%, 3/15/00............................. 409,522
DEM 1,000,000 Federal Republic of Germany, 5.875%, 5/15/00............................ 695,957
DEM 1,400,000 Federal Republic of Germany, 7.50%, 11/11/04............................ 1,017,012
DEM 550,000 Federal Republic of Germany, 7.375%, 1/3/05............................. 396,113
DEM 2,950,000 Federal Republic of Germany, 6.875%, 5/12/05............................ 2,056,270
-------------
...................................................................... 4,574,874
-------------
GBP 75,000 U.K. Gilt, 8.50%, 12/7/05................................................ 117,171
GBP 315,000 U.K. Gilt, 7.50%, 12/7/06................................................ 457,557
-------------
...................................................................... 574,728
-------------
NLG 620,000 Government of Netherlands, 6.25%, 7/15/98............................... 391,726
NLG 540,000 Government of Netherlands, 7.00%, 6/15/05............................... 340,494
NLG 1,369,000 Government of Netherlands, 7.50%, 4/15/10............................... 883,513
-------------
...................................................................... 1,615,733
-------------
<PAGE>
<CAPTION>
GLOBAL BOND FUND (CONTINUED)
===================================================================================================================
PAR MARKET
VALUE INVESTMENTS -- 83.6% VALUE
- -------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
NZD 722,000 Government of New Zealand, 6.50%, 2/15/00............................... $ 462,735
-------------
ESP 59,070,000 Government of Spain, 10.15%, 1/31/06.................................... 487,432
-------------
TOTAL FOREIGN GOVERNMENT ISSUES
(Amortized Cost $13,803,595).......................................... $ 13,637,535
-------------
TOTAL INVESTMENTS AT VALUE
(Amortized Cost $17,345,185).......................................... $ 17,078,828
-------------
<CAPTION>
===================================================================================================================
FACE MARKET
AMOUNT TIME DEPOSITS-- 0.6% VALUE
- -------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
DEM 190,940 German Mark Time Deposit, 3.0625%, 4/2/96................................ $ 129,330
-------------
TOTAL TIME DEPOSITS
(Amortized Cost $129,185) ............................................ $ 129,330
-------------
TOTAL INVESTMENTS AND TIME DEPOSITS AT VALUE -- 84.2% ................... $ 17,208,158
OTHER ASSETS AND LIABILITIES, NET-- 15.8% ............................... 3,226,646
-------------
NET ASSETS-- 100.0% ..................................................... $ 20,434,804
=============
<FN>
USD-U.S. Dollar DEM-German Mark
JPY-Japenese Yen GBP-British Pound Sterling
DKK-Danish Krone NLG-Netherlands Guilder
CAD-Canadian Dollar NZD-New Zealand Dollar
ITL-Italian Lira ESP-Spanish Peseta
IEP-Irish Punt
See accompanying notes to financial statements.
</FN>
</TABLE>
<PAGE>
<TABLE>
RESULTS OF SPECIAL MEETING OF SHAREHOLDERS
DECEMBER 8, 1995
==============================================================================
On December 8, 1995, a Special Meeting of Shareholders of the Trust was held
to elect Trustees to serve on the Board and to ratify or reject the selection
of Arthur Andersen LLP as the Trust's independent public accountants for the
current fiscal year. The total number of shares of the Trust present by proxy
represented 58.3% the shares entitled to vote at the meeting.
The results of the voting for Trustees were as follows:
<CAPTION>
- -------------------------------------------------------------------------------------------------------------------
WITHHOLD
NOMINEES FOR ELECTION AUTHORITY STATUS
- -------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Dale P. Brown 77,141,921.361 725,880.988 New Trustee
Gary W. Heldman 77,221,095.473 646,706.876 Incumbent
H. Jerome Lerner 77,278,331.488 589,470.861 Incumbent
Robert H. Leshner 77,397,264.070 470,538.279 Incumbent
Richard A. Lipsey 76,885,073.419 982,728.930 New Trustee
Donald J. Rahilly 77,158,549.583 709,252.766 New Trustee
Fred A. Rappoport 76,769,579.905 1,098,222.444 New Trustee
Oscar P. Robertson 77,301,759.783 566,042.566 Incumbent
Robert B. Sumerel 77,153,883.713 713,918.636 New Trustee
- -------------------------------------------------------------------------------------------------------------------
The results of the voting for Arthur Andersen LLP by each Fund were as
follows:
<CAPTION>
- -------------------------------------------------------------------------------------------------------------------
NUMBER OF SHARES
FOR AGAINST ABSTAIN
- -------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Short Term Government Income Fund 46,966,775.620 156,155.570 418,885.600
Intermediate Term Government Income Fund 2,968,412.302 27,096.321 31,329.363
Institutional Government Income Fund 24,859,078.960 -- --
Adjustable Rate U.S. Government Securities Fund 1,383,526.800 107.623 6,865.830
Global Bond Fund 1,049,568.360 -- --
- -------------------------------------------------------------------------------------------------------------------
</TABLE>
<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
Dale P. Brown
Gary W. Heldman
H. Jerome Lerner
Robert H. Leshner
Richard A. Lipsey
Donald J. Rahilly
Fred A. Rappoport
Oscar P. Robertson
Robert B. Sumerel
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.
<PAGE>
INCOME
TOTAL RETURN
SEMI-ANNUAL
REPORT
MARCH 31, 1996
(UNAUDITED)
Short Term Government
INCOME FUND
o
Institutional Government
INCOME FUND
o
Intermediate Term
Government
INCOME FUND
o
Adjustable Rate
U.S. Government
SECURITIES FUND
o
Global
BOND FUND
<TABLE> <S> <C>
<ARTICLE> 6
<CIK> 0000066117
<NAME> MIDWEST TRUST
<SERIES>
<NUMBER> 1
<NAME> SHORT TERM GOVERNMENT INCOME FUND
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> SEP-30-1996
<PERIOD-START> OCT-1-1995
<PERIOD-END> MAR-31-1996
<INVESTMENTS-AT-COST> 83,410,424
<INVESTMENTS-AT-VALUE> 83,410,424
<RECEIVABLES> 5,297,369
<ASSETS-OTHER> 831
<OTHER-ITEMS-ASSETS> 7,137
<TOTAL-ASSETS> 88,715,761
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 69,499
<TOTAL-LIABILITIES> 69,499
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 88,646,262
<SHARES-COMMON-STOCK> 88,646,262
<SHARES-COMMON-PRIOR> 87,138,909
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 0
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 0
<NET-ASSETS> 88,646,262
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 2,374,925
<OTHER-INCOME> 0
<EXPENSES-NET> 426,085
<NET-INVESTMENT-INCOME> 1,948,840
<REALIZED-GAINS-CURRENT> 0
<APPREC-INCREASE-CURRENT> 0
<NET-CHANGE-FROM-OPS> 1,948,840
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 1,948,840
<DISTRIBUTIONS-OF-GAINS> 2,227
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 144,615,313
<NUMBER-OF-SHARES-REDEEMED> 144,974,026
<SHARES-REINVESTED> 1,866,066
<NET-CHANGE-IN-ASSETS> 1,505,126
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 2,227
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 206,184
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 426,085
<AVERAGE-NET-ASSETS> 85,965,071
<PER-SHARE-NAV-BEGIN> 1.00
<PER-SHARE-NII> .023
<PER-SHARE-GAIN-APPREC> 0
<PER-SHARE-DIVIDEND> .023
<PER-SHARE-DISTRIBUTIONS> 0
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 1.00
<EXPENSE-RATIO> .99
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<CIK> 0000066117
<NAME> MIDWEST TRUST
<SERIES>
<NUMBER> 4
<NAME> INSTITUTIONAL GOVERNMENT INCOME FUND
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> SEP-30-1996
<PERIOD-START> OCT-1-1995
<PERIOD-END> MAR-31-1996
<INVESTMENTS-AT-COST> 29,052,632
<INVESTMENTS-AT-VALUE> 29,052,632
<RECEIVABLES> 42,222
<ASSETS-OTHER> 632
<OTHER-ITEMS-ASSETS> 3,766
<TOTAL-ASSETS> 29,099,252
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 29,869
<TOTAL-LIABILITIES> 29,869
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 29,095,229
<SHARES-COMMON-STOCK> 29,095,229
<SHARES-COMMON-PRIOR> 36,037,070
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> (25,846)
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 0
<NET-ASSETS> 29,069,383
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 967,274
<OTHER-INCOME> 0
<EXPENSES-NET> 69,495
<NET-INVESTMENT-INCOME> 897,779
<REALIZED-GAINS-CURRENT> 2,594
<APPREC-INCREASE-CURRENT> 0
<NET-CHANGE-FROM-OPS> 900,373
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 897,779
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 78,678,260
<NUMBER-OF-SHARES-REDEEMED> 86,360,340
<SHARES-REINVESTED> 740,239
<NET-CHANGE-IN-ASSETS> (6,939,247)
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> (28,440)
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 34,736
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 88,016
<AVERAGE-NET-ASSETS> 34,661,034
<PER-SHARE-NAV-BEGIN> 1.00
<PER-SHARE-NII> .026
<PER-SHARE-GAIN-APPREC> 0
<PER-SHARE-DIVIDEND> .026
<PER-SHARE-DISTRIBUTIONS> 0
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 1.00
<EXPENSE-RATIO> .40
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<CIK> 0000066117
<NAME> MIDWEST TRUST
<SERIES>
<NUMBER> 31
<NAME> INTERMEDIATE TERM GOVERNMENT INCOME FUND CLASS A
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> SEP-30-1996
<PERIOD-START> OCT-1-1995
<PERIOD-END> MAR-31-1996
<INVESTMENTS-AT-COST> 63,951,265
<INVESTMENTS-AT-VALUE> 64,130,017
<RECEIVABLES> 948,603
<ASSETS-OTHER> 811
<OTHER-ITEMS-ASSETS> 6,460
<TOTAL-ASSETS> 65,085,891
<PAYABLE-FOR-SECURITIES> 1,980,625
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 118,578
<TOTAL-LIABILITIES> 2,099,203
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 65,026,013
<SHARES-COMMON-STOCK> 5,878,838
<SHARES-COMMON-PRIOR> 5,308,934
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> (2,218,077)
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 178,752
<NET-ASSETS> 62,283,279
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 1,939,913
<OTHER-INCOME> 0
<EXPENSES-NET> 290,514
<NET-INVESTMENT-INCOME> 1,649,399
<REALIZED-GAINS-CURRENT> 976,921
<APPREC-INCREASE-CURRENT> (1,839,666)
<NET-CHANGE-FROM-OPS> 786,654
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 1,632,143
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 1,324,360
<NUMBER-OF-SHARES-REDEEMED> 883,921
<SHARES-REINVESTED> 129,465
<NET-CHANGE-IN-ASSETS> 5,419,652
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> (3,194,998)
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 143,808
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 296,797
<AVERAGE-NET-ASSETS> 57,674,073
<PER-SHARE-NAV-BEGIN> 10.73
<PER-SHARE-NII> .31
<PER-SHARE-GAIN-APPREC> (.14)
<PER-SHARE-DIVIDEND> .31
<PER-SHARE-DISTRIBUTIONS> 0
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 10.59
<EXPENSE-RATIO> .99
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<CIK> 0000066117
<NAME> MIDWEST TRUST
<SERIES>
<NUMBER> 33
<NAME> INTERMEDIATE TERM GOVERNMENT INCOME FUND CLASS C
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> SEP-30-1996
<PERIOD-START> OCT-1-1995
<PERIOD-END> MAR-31-1996
<INVESTMENTS-AT-COST> 63,951,265
<INVESTMENTS-AT-VALUE> 64,130,017
<RECEIVABLES> 948,603
<ASSETS-OTHER> 811
<OTHER-ITEMS-ASSETS> 6,460
<TOTAL-ASSETS> 65,085,891
<PAYABLE-FOR-SECURITIES> 1,980,625
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 118,578
<TOTAL-LIABILITIES> 2,099,203
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 65,026,013
<SHARES-COMMON-STOCK> 66,393
<SHARES-COMMON-PRIOR> 55,773
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> (2,218,077)
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 178,752
<NET-ASSETS> 703,409
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 1,939,913
<OTHER-INCOME> 0
<EXPENSES-NET> 290,514
<NET-INVESTMENT-INCOME> 1,649,399
<REALIZED-GAINS-CURRENT> 976,921
<APPREC-INCREASE-CURRENT> (1,839,666)
<NET-CHANGE-FROM-OPS> 786,654
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 17,256
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 16,867
<NUMBER-OF-SHARES-REDEEMED> 7,774
<SHARES-REINVESTED> 1,527
<NET-CHANGE-IN-ASSETS> 5,419,652
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> (3,194,998)
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 143,808
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 296,797
<AVERAGE-NET-ASSETS> 669,356
<PER-SHARE-NAV-BEGIN> 10.73
<PER-SHARE-NII> .28
<PER-SHARE-GAIN-APPREC> (.14)
<PER-SHARE-DIVIDEND> .28
<PER-SHARE-DISTRIBUTIONS> 0
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 10.59
<EXPENSE-RATIO> 1.49
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<CIK> 0000066117
<NAME> MIDWEST TRUST
<SERIES>
<NUMBER> 61
<NAME> ADJUSTABLE RATE U.S. GOVERNMENT SECURITIES FUND CLASS A
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> SEP-30-1996
<PERIOD-START> OCT-1-1995
<PERIOD-END> MAR-31-1996
<INVESTMENTS-AT-COST> 12,924,542
<INVESTMENTS-AT-VALUE> 13,077,884
<RECEIVABLES> 306,385
<ASSETS-OTHER> 0
<OTHER-ITEMS-ASSETS> 19,479
<TOTAL-ASSETS> 13,403,748
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 69,663
<TOTAL-LIABILITIES> 69,663
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 14,442,066
<SHARES-COMMON-STOCK> 1,351,317
<SHARES-COMMON-PRIOR> 2,121,595
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> (1,261,323)
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 153,342
<NET-ASSETS> 13,274,669
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 671,210
<OTHER-INCOME> 0
<EXPENSES-NET> 74,785
<NET-INVESTMENT-INCOME> 596,425
<REALIZED-GAINS-CURRENT> 59,991
<APPREC-INCREASE-CURRENT> 3,977
<NET-CHANGE-FROM-OPS> 660,393
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 594,542
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 647,995
<NUMBER-OF-SHARES-REDEEMED> 1,471,884
<SHARES-REINVESTED> 53,611
<NET-CHANGE-IN-ASSETS> (7,504,634)
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> (1,321,314)
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 49,747
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 140,086
<AVERAGE-NET-ASSETS> 19,760,740
<PER-SHARE-NAV-BEGIN> 9.78
<PER-SHARE-NII> .29
<PER-SHARE-GAIN-APPREC> .04
<PER-SHARE-DIVIDEND> .29
<PER-SHARE-DISTRIBUTIONS> 0
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 9.82
<EXPENSE-RATIO> .75
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<CIK> 0000066117
<NAME> MIDWEST TRUST
<SERIES>
<NUMBER> 63
<NAME> ADJUSTABLE RATE U.S. GOVERNMENT SECURITIES FUND CLASS C
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> SEP-30-1996
<PERIOD-START> OCT-1-1995
<PERIOD-END> MAR-31-1996
<INVESTMENTS-AT-COST> 12,924,542
<INVESTMENTS-AT-VALUE> 13,077,884
<RECEIVABLES> 306,385
<ASSETS-OTHER> 0
<OTHER-ITEMS-ASSETS> 19,479
<TOTAL-ASSETS> 13,403,748
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 69,663
<TOTAL-LIABILITIES> 69,663
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 14,442,066
<SHARES-COMMON-STOCK> 6,050
<SHARES-COMMON-PRIOR> 8,834
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> (1,261,323)
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 153,342
<NET-ASSETS> 59,416
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 671,210
<OTHER-INCOME> 0
<EXPENSES-NET> 74,785
<NET-INVESTMENT-INCOME> 596,425
<REALIZED-GAINS-CURRENT> 59,991
<APPREC-INCREASE-CURRENT> 3,977
<NET-CHANGE-FROM-OPS> 660,393
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 1,883
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 1,635
<NUMBER-OF-SHARES-REDEEMED> 4,593
<SHARES-REINVESTED> 174
<NET-CHANGE-IN-ASSETS> (7,504,634)
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> (1,321,314)
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 49,747
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 140,086
<AVERAGE-NET-ASSETS> 68,388
<PER-SHARE-NAV-BEGIN> 9.78
<PER-SHARE-NII> .27
<PER-SHARE-GAIN-APPREC> .04
<PER-SHARE-DIVIDEND> .27
<PER-SHARE-DISTRIBUTIONS> 0
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 9.82
<EXPENSE-RATIO> 1.25
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<CIK> 0000066117
<NAME> MIDWEST TRUST
<SERIES>
<NUMBER> 71
<NAME> GLOBAL BOND FUND CLASS A
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> SEP-30-1996
<PERIOD-START> OCT-1-1995
<PERIOD-END> MAR-31-1996
<INVESTMENTS-AT-COST> 17,474,370
<INVESTMENTS-AT-VALUE> 17,208,158
<RECEIVABLES> 975,944
<ASSETS-OTHER> 2,279,647
<OTHER-ITEMS-ASSETS> 3,345
<TOTAL-ASSETS> 20,467,094
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 32,290
<TOTAL-LIABILITIES> 32,290
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 20,485,504
<SHARES-COMMON-STOCK> 1,346,097
<SHARES-COMMON-PRIOR> 1,249,309
<ACCUMULATED-NII-CURRENT> 233,395
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> (40,869)
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> (243,226)
<NET-ASSETS> 14,221,524
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 599,706
<OTHER-INCOME> 0
<EXPENSES-NET> 149,410
<NET-INVESTMENT-INCOME> 450,296
<REALIZED-GAINS-CURRENT> (92,232)
<APPREC-INCREASE-CURRENT> (339,707)
<NET-CHANGE-FROM-OPS> 18,357
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 173,473
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 146,325
<NUMBER-OF-SHARES-REDEEMED> 64,821
<SHARES-REINVESTED> 15,284
<NET-CHANGE-IN-ASSETS> 2,619,760
<ACCUMULATED-NII-PRIOR> 8,355
<ACCUMULATED-GAINS-PRIOR> 51,363
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 68,554
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 164,632
<AVERAGE-NET-ASSETS> 14,288,127
<PER-SHARE-NAV-BEGIN> 10.64
<PER-SHARE-NII> .25
<PER-SHARE-GAIN-APPREC> (.19)
<PER-SHARE-DIVIDEND> .13
<PER-SHARE-DISTRIBUTIONS> 0
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 10.57
<EXPENSE-RATIO> 1.35
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<CIK> 0000066117
<NAME> MIDWEST TRUST
<SERIES>
<NUMBER> 73
<NAME> GLOBAL BOND FUND CLASS C
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> SEP-30-1996
<PERIOD-START> OCT-1-1995
<PERIOD-END> MAR-31-1996
<INVESTMENTS-AT-COST> 17,474,370
<INVESTMENTS-AT-VALUE> 17,208,158
<RECEIVABLES> 975,944
<ASSETS-OTHER> 2,279,647
<OTHER-ITEMS-ASSETS> 3,345
<TOTAL-ASSETS> 20,467,094
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 32,290
<TOTAL-LIABILITIES> 32,290
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 20,485,504
<SHARES-COMMON-STOCK> 592,013
<SHARES-COMMON-PRIOR> 426,839
<ACCUMULATED-NII-CURRENT> 233,395
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> (40,869)
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> (243,226)
<NET-ASSETS> 6,213,280
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 599,706
<OTHER-INCOME> 0
<EXPENSES-NET> 149,410
<NET-INVESTMENT-INCOME> 450,296
<REALIZED-GAINS-CURRENT> (92,232)
<APPREC-INCREASE-CURRENT> (339,707)
<NET-CHANGE-FROM-OPS> 18,357
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 51,783
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 169,143
<NUMBER-OF-SHARES-REDEEMED> 8,641
<SHARES-REINVESTED> 4,672
<NET-CHANGE-IN-ASSETS> 2,619,760
<ACCUMULATED-NII-PRIOR> 8,355
<ACCUMULATED-GAINS-PRIOR> 51,363
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 68,554
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 164,632
<AVERAGE-NET-ASSETS> 5,299,738
<PER-SHARE-NAV-BEGIN> 10.59
<PER-SHARE-NII> .17
<PER-SHARE-GAIN-APPREC> (.16)
<PER-SHARE-DIVIDEND> .10
<PER-SHARE-DISTRIBUTIONS> 0
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 10.50
<EXPENSE-RATIO> 2.00
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
