Income
Total Return
SEMI-ANNUAL
REPORT
MARCH 31, 1997
(Unaudited)
SHORT TERM GOVERNMENT
Income Fund
INSTITUTIONAL GOVERNMENT
Income Fund
INTERMEDIATE TERM
GOVERNMENT
Income Fund
ADJUSTABLE RATE
U.S. GOVERNMENT
Securities Fund
GLOBAL
Bond Fund
COUNTRYWIDE
INVESTMENTS
<PAGE>
Photo of: Angelo R. Mozilo, Chairman
LETTER FROM THE CHAIRMAN
===============================================================================
Dear Shareholders:
Welcome to the Countrywide Family. The recent acquisition of Midwest Group by
Countrywide is cause for celebration within both organizations.
Midwest Group's experienced management team, reputation for excellence, and
strong customer relationships significantly enhance Countrywide's long-term
commitment to being a leading provider of financial services.
In turn, Countrywide offers this excellent team an atmosphere of innovative
technology, industry leadership, and dynamic organization. It is a blending of
talents and abilities that will position our newly expanded Countrywide family
for leadership into the twenty-first century.
Countrywide Home Loans is the nation's leading independent residential mortgage
lender and servicer. Our loan servicing operation now serves more than 1.5
million homeowners. With nearly 400 offices, Countrywide employs over 6,000
individuals across the United States. In addition to first lien prime and
subprime mortgages and home equity loans, a variety of other financial products
and services augments our mortgage lending and servicing operations including
insurance products, credit cards, and now investments.
Countrywide Investments adds a critical component to Countrywide's strategic
business plan. While mortgage lending is Countrywide's core business, we believe
diversification of financial products and services will provide greater customer
retention and enhanced customer service.
In addition to the quality and performance you've come to expect in meeting your
investment needs, we think you will be pleased with the additional opportunities
Countrywide offers. Again, welcome to the Countrywide family.
Sincerely,
/s/ Angelo R. Mozilo
Angelo R. Mozilo
Chairman
<PAGE>
Photo of: Robert H. Leshner, President
LETTER FROM THE PRESIDENT
==============================================================================
Dear Fellow Shareholders:
We are pleased to present the unaudited semi-annual report for the Countrywide
Investment Trust for the six months ended March 31, 1997.
As you may already have noticed, our name and look have changed. We are
answering the phone as Countrywide Investments, and your statement bears the
Countrywide brand. Our Funds are now listed under the Countrywide name in local
and national newspapers, magazines and other publications.
Countrywide has a long-term commitment to be a leading provider of financial
services. It views the acquisition of Midwest Group as an opportunity to offer a
broader variety of financial products and services to complement its residential
lending and servicing operations. If we can be of assistance to you with your
home loan needs, please don't hesitate to call us at 800-586-9150, our hotline
number especially for Countrywide Investments shareholders.
As a result of these exciting changes, we now have access to Countrywide's broad
managerial, financial and technological resources. These tools will help us to
ensure that we continue to develop and deliver quality investment products and
services to help meet your financial goals.
What has not changed is the Funds' management team and the investment strategies
employed by the Funds. We remain committed to providing you with the same level
of quality service to which you are accustomed.
The economic expansion continues and inflation is nowhere to be found. Millions
of jobs have been added and the resulting unemployment rate is at its lowest
level since 1974. Spurred on by high employment and wages, consumer confidence
is near an all-time high. We believe that the economy will continue to enjoy
moderate growth with few inflationary threats.
The U.S. Government bond funds within the Countrywide Investment Trust provide
high-quality alternatives for investors seeking current income consistent with
the protection of capital. The Short Term Government Income Fund and the
Adjustable Rate U.S. Government Securities Fund, with their excellent record of
credit quality, continue to provide opportunities for conservative investors and
for those who are anxious about volatility in the equity markets.
The Countrywide Global Bond Fund provides investors with the ability to
participate in global economies through a portfolio of U.S. and foreign
government bonds. Opportunities to participate in global economies continue to
expand, and portfolio exposure through global bond investing may be an excellent
way to diversify, while limiting portfolio volatility from a single market.
Countrywide Investments remains committed to providing conservative,
high-quality opportunities to help investors meet their financial goals. Our
success can be attributed to the support of shareholders like you. We thank you
for your continued confidence and look forward to serving your investment needs
in the years to come.
Sincerely,
/s/ Robert H. Leshner
Robert H. Leshner
President
<PAGE>
<TABLE>
<CAPTION>
STATEMENTS OF ASSETS AND LIABILITIES
March 31, 1997 (Unaudited)
======================================================================================================
MONEY MARKET FUNDS
======================================================================================================
SHORT TERM INSTITUTIONAL
GOVERNMENT GOVERNMENT
INCOME FUND INCOME FUND
- ------------------------------------------------------------------------------------------------------
<S> <C> <C>
ASSETS
Investments in securities:
At acquisition cost .................................................. $37,320,169 $21,090,551
=========== ===========
At amortized cost .................................................... $37,220,698 $21,118,307
=========== ===========
At value (Note 2) .................................................... $37,220,698 $21,118,307
Investments in repurchase agreements (Note 2) ........................... 59,382,000 30,281,000
Cash .................................................................... 1,979 136
Interest receivable ..................................................... 557,412 231,076
Other assets ............................................................ 7,028 3,475
----------- -----------
TOTAL ASSETS ......................................................... 97,169,117 51,633,994
----------- -----------
LIABILITIES
Dividends payable ....................................................... 5,368 10,923
Payable to affiliates (Note 4) .......................................... 62,464 9,926
Other accrued expenses and liabilities .................................. 7,500 4,650
----------- -----------
TOTAL LIABILITIES .................................................... 75,332 25,499
----------- -----------
NET ASSETS .............................................................. $97,093,785 $51,608,495
=========== ===========
Net assets consist of:
Paid-in capital ......................................................... $97,093,785 $51,630,258
Accumulated net realized losses from security transactions .............. -- (21,763)
----------- -----------
Net assets .............................................................. $97,093,785 $51,608,495
=========== ===========
Shares of beneficial interest outstanding (unlimited number of shares
authorized, no par value) (Note 5) ................................... 97,093,785 51,630,258
=========== ===========
Net asset value, offering price and redemption price per share (Note 2) . $ 1.00 $ 1.00
=========== ===========
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
STATEMENTS OF ASSETS AND LIABILITIES
March 31, 1997 (Unaudited)
===========================================================================================================
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 .................................................. $52,486,063 $14,723,393
=========== ===========
At amortized cost .................................................... $52,299,314 $14,723,393
=========== ===========
At value (Note 2) .................................................... $51,909,956 $14,830,448
Investments in repurchase agreements (Note 2) ........................... 3,310,000 2,615,000
Cash .................................................................... 4,276 3,765
Interest receivable ..................................................... 859,466 107,344
Receivable for capital shares sold ...................................... 39,457 436,037
Receivable for principal paydowns ....................................... -- 41,622
Receivable from Adviser (Note 4) ........................................ -- 2,378
Other assets ............................................................ 6,161 21,801
----------- -----------
TOTAL ASSETS ......................................................... 56,129,316 18,058,395
----------- -----------
LIABILITIES
Dividends payable ....................................................... 24,710 3,660
Payable for capital shares redeemed ..................................... 45,284 53,920
Payable to affiliates (Note 4) .......................................... 31,786 6,250
Payable for securities purchased ........................................ 1,500,000 --
Other accrued expenses and liabilities .................................. 6,477 4,400
----------- -----------
TOTAL LIABILITIES .................................................... 1,608,257 68,230
----------- -----------
NET ASSETS .............................................................. $54,521,059 $17,990,165
=========== ===========
Net assets consist of:
Paid-in capital ......................................................... $57,662,530 $19,134,237
Accumulated net realized losses from security transactions .............. (2,752,113) (1,251,127)
Net unrealized appreciation (depreciation) on investments ............... (389,358) 107,055
----------- -----------
Net assets .............................................................. $54,521,059 $17,990,165
=========== ===========
PRICING OF CLASS A SHARES
Net assets attributable to Class A shares ............................... $53,752,734 $17,268,888
=========== ===========
Shares of beneficial interest outstanding (unlimited
number of shares authorized, no par value) (Note 5) .................. 5,169,596 1,761,115
=========== ===========
Net asset value and redemption price per share (Note 2) ................. $ 10.40 $ 9.81
=========== ===========
Maximum offering price per share (Note 2) ............................... $ 10.61 $ 10.01
=========== ===========
PRICING OF CLASS C SHARES
Net assets attributable to Class C shares ............................... $ 768,325 $ 721,277
=========== ===========
Shares of beneficial interest outstanding (unlimited
number of shares authorized, no par value) (Note 5) .................. 73,895 73,599
=========== ===========
Net asset value, offering price and redemption price per share (Note 2) . $ 10.40 $ 9.80
=========== ===========
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
STATEMENT OF ASSETS AND LIABILITIES
March 31, 1997 (Unaudited)
=======================================================================================================================
GLOBAL BOND
FUND
- -----------------------------------------------------------------------------------------------------------------------
<S> <C>
ASSETS
Investments in securities:
At acquisition cost ................................................................................. $16,234,457
===========
At amortized cost ................................................................................... $16,236,178
===========
At value (Note 2) ................................................................................... $15,654,695
Cash denominated in foreign currencies (at cost $10,196) ............................................... 10,383
Cash ................................................................................................... 963,177
Interest receivable .................................................................................... 412,431
Receivable for capital shares sold ..................................................................... 1,120
Receivable for securities sold ......................................................................... 863,574
Net unrealized appreciation on forward foreign currency exchange contracts (Note 7) .................... 68,508
Other assets ........................................................................................... 4,092
-----------
TOTAL ASSETS ........................................................................................ 17,977,980
-----------
LIABILITIES
Payable for securities purchased ....................................................................... 1,240,024
Payable for capital shares redeemed .................................................................... 36,885
Payable to affiliates (Note 4) ......................................................................... 10,881
Other accrued expenses and liabilities ................................................................. 11,100
-----------
TOTAL LIABILITIES ................................................................................... 1,298,890
-----------
NET ASSETS ............................................................................................. $16,679,090
===========
Net assets consist of:
Paid-in capital ........................................................................................ $17,023,227
Undistributed net investment income .................................................................... 452,181
Accumulated net realized losses from security and foreign currency transactions ........................ (265,920)
Net unrealized depreciation on investments ............................................................. (581,483)
Net unrealized appreciation on translation of assets and liabilities in foreign currencies ............. 51,085
-----------
Net assets ............................................................................................. $16,679,090
===========
PRICING OF CLASS A SHARES
Net assets attributable to Class A shares .............................................................. $10,596,645
===========
Shares of beneficial interest outstanding (unlimited number of shares authorized, no par value) (Note 5) 1,017,467
===========
Net asset value and redemption price per share (Note 2) ................................................ $ 10.41
===========
Maximum offering price per share (Note 2) .............................................................. $ 10.84
===========
PRICING OF CLASS C SHARES
Net assets attributable to Class C shares .............................................................. $ 6,082,445
===========
Shares of beneficial interest outstanding (unlimited number of shares authorized, no par value) (Note 5) 591,985
===========
Net asset value, offering price and redemption price per share (Note 2) ................................ $ 10.27
===========
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
STATEMENTS OF OPERATIONS
For the Six Months Ended March 31, 1997 (Unaudited)
==============================================================================
MONEY MARKET FUNDS
==============================================================================
SHORT TERM INSTITUTIONAL
GOVERNMENT GOVERNMENT
INCOME FUND INCOME FUND
- ------------------------------------------------------------------------------
<S> <C> <C>
INVESTMENT INCOME
Interest income .......................... $2,683,686 $1,190,360
---------- ----------
EXPENSES
Investment advisory fees (Note 4) ........ 238,534 44,321
Transfer agent fees (Note 4) ............. 94,372 7,735
Distribution expenses (Note 4) ........... 73,804 1,099
Postage and supplies ..................... 29,370 10,028
Accounting services fees (Note 4) ........ 20,500 18,000
Custodian fees ........................... 10,391 7,545
Registration fees ........................ 11,050 5,390
Professional fees ........................ 6,350 4,250
Insurance expense ........................ 4,618 2,518
Trustees' fees and expenses .............. 2,499 2,499
Reports to shareholders .................. 3,156 307
Other expenses ........................... 2,745 2,327
---------- ----------
TOTAL EXPENSES ......................... 497,389 106,019
Fees waived by the Adviser (Note 4) ...... -- (17,376)
---------- ----------
NET EXPENSES ........................... 497,389 88,643
---------- ----------
NET INVESTMENT INCOME ....................... 2,186,297 1,101,717
---------- ----------
NET REALIZED GAINS FROM SECURITY TRANSACTIONS -- 3,139
---------- ----------
NET INCREASE IN NET ASSETS FROM OPERATIONS .. $2,186,297 $1,104,856
========== ==========
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
STATEMENTS OF OPERATIONS
For the Six Months Ended March 31, 1997 (Unaudited)
==============================================================================================
GOVERNMENT BOND FUNDS
==============================================================================================
ADJUSTABLE
INTERMEDIATE RATE U.S.
TERM GOVERNMENT
GOVERNMENT SECURITIES
INCOME FUND FUND
- ----------------------------------------------------------------------------------------------
<S> <C> <C>
INVESTMENT INCOME
Interest income ................................................. $1,908,414 $ 438,844
---------- ----------
EXPENSES
Investment advisory fees (Note 4) ............................... 139,615 33,309
Accounting services fees (Note 4) ............................... 25,500 25,500
Distribution expenses, Class A (Note 4) ......................... 42,179 7,178
Distribution expenses, Class C (Note 4) ......................... 14 125
Transfer agent fees, Class A (Note 4) ........................... 23,639 6,617
Transfer agent fees, Class C (Note 4) ........................... 6,000 6,000
Postage and supplies ............................................ 17,782 6,493
Registration fees, Common ....................................... 2,495 4,693
Registration fees, Class A ...................................... 6,604 4,262
Registration fees, Class C ...................................... 3,694 2,099
Professional fees ............................................... 7,250 5,000
Custodian fees .................................................. 3,310 5,475
Standard & Poor's rating expense ................................ -- 8,667
Trustees' fees and expenses ..................................... 2,499 2,499
Insurance expense ............................................... 3,292 1,088
Reports to shareholders ......................................... 1,146 340
Other expenses .................................................. 3,433 1,255
---------- ----------
TOTAL EXPENSES ................................................ 288,452 120,600
Fees waived and/or expenses reimbursed by the Adviser (Note 4) .. (6,546) (68,711)
---------- ----------
NET EXPENSES .................................................. 281,906 51,889
---------- ----------
NET INVESTMENT INCOME .............................................. 1,626,508 386,955
---------- ----------
REALIZED AND UNREALIZED GAINS (LOSSES) ON INVESTMENTS
Net realized gains (losses) from security transactions .......... 147,179 (1,977)
Net change in unrealized appreciation/depreciation on investments (600,062) (17,546)
---------- ----------
NET REALIZED AND UNREALIZED LOSSES ON INVESTMENTS .................. (452,883) (19,523)
---------- ----------
NET INCREASE IN NET ASSETS FROM OPERATIONS ......................... $1,173,625 $ 367,432
========== ==========
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
STATEMENT OF OPERATIONS
For the Six Months Ended March 31, 1997 (Unaudited)
==========================================================================================
GLOBAL BOND
FUND
- ------------------------------------------------------------------------------------------
<S> <C>
INVESTMENT INCOME
Interest income ......................................................... $599,935
-----------
EXPENSES
Investment advisory fees (Note 4) ....................................... 65,232
Accounting services fees (Note 4) ....................................... 28,500
Custodian fees .......................................................... 17,510
Distribution expenses, Class A (Note 4) ................................. 1,368
Distribution expenses, Class C (Note 4) ................................. 11,364
Transfer agent fees, Class A (Note 4) ................................... 6,000
Transfer agent fees, Class C (Note 4) ................................... 6,000
Registration fees, Common ............................................... 4,205
Registration fees, Class A .............................................. 2,752
Registration fees, Class C .............................................. 2,752
Professional fees ....................................................... 5,450
Postage and supplies .................................................... 3,459
Trustees' fees and expenses ............................................. 2,499
Insurance expense ....................................................... 1,494
Reports to shareholders ................................................. 306
Other expenses .......................................................... 3,983
-----------
TOTAL EXPENSES ........................................................ 162,874
Fees waived and expenses reimbursed by the Adviser (Note 4) ............. (16,663)
-----------
NET EXPENSES .......................................................... 146,211
-----------
NET INVESTMENT INCOME ...................................................... 453,724
-----------
REALIZED AND UNREALIZED GAINS (LOSSES) FROM INVESTMENTS AND FOREIGN CURRENCY
(NOTE 6) Net realized gains (losses) from:
Security transactions ................................................. 260,223
Foreign currency transactions ......................................... (207,192)
Net change in unrealized appreciation/depreciation on:
Investments ........................................................... (907,264)
Translation of assets and liabilities in foreign currencies ........... 60,957
-----------
NET REALIZED AND UNREALIZED LOSSES FROM
INVESTMENTS AND FOREIGN CURRENCY ........................................ (793,276)
-----------
NET DECREASE IN NET ASSETS FROM OPERATIONS .................................$ (339,552)
===========
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
STATEMENTS OF CHANGES IN NET
ASSETS For the Periods Ended March 31, 1997 and September 30, 1996
============================================================================================================================
MONEY MARKET FUNDS
============================================================================================================================
SHORT TERM INSTITUTIONAL
GOVERNMENT GOVERNMENT
INCOME FUND INCOME FUND
- ----------------------------------------------------------------------------------------------------------------------------
Six Months Year Six Months Year
Ended Ended Ended Ended
Mar. 31, 1997 Sept. 30, Mar. 31, 1997 Sept. 30,
(Unaudited) 1996 (Unaudited) 1996
- ----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
FROM OPERATIONS:
Net investment income ................................ $ 2,186,297 $ 3,872,769 $ 1,101,717 $ 1,789,514
Net realized gains from security transactions ........ -- 2,970 3,139 3,538
------------- ------------- ------------- -------------
Net increase in net assets from operations .............. 2,186,297 3,875,739 1,104,856 1,793,052
------------- ------------- ------------- -------------
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income ........................... (2,186,297) (3,872,769) (1,101,717) (1,789,514)
From net realized gains from security transactions ... (2,970) (2,227) -- --
------------- ------------- ------------- -------------
Decrease in net assets from distributions to shareholders (2,189,267) (3,874,996) (1,101,717) (1,789,514)
------------- ------------- ------------- -------------
FROM CAPITAL SHARE TRANSACTIONS (NOTE 5):
Proceeds from shares sold ............................ 178,740,208 290,338,196 105,070,731 171,325,558
Net asset value of shares issued in
reinvestment of distributions to shareholders ...... 2,109,615 3,711,242 1,007,805 1,548,806
Payments for shares redeemed ......................... (175,192,552) (289,751,833) (93,855,244) (169,504,468)
------------- ------------- ------------- -------------
Net increase in net assets from
capital share transactions ........................... 5,657,271 4,297,605 12,223,292 3,369,896
------------- ------------- ------------- -------------
TOTAL INCREASE IN NET ASSETS ............................ 5,654,301 4,298,348 12,226,431 3,373,434
NET ASSETS:
Beginning of period .................................. 91,439,484 87,141,136 39,382,064 36,008,630
------------- ------------- ------------- -------------
End of period ........................................ $ 97,093,785 $ 91,439,484 $ 51,608,495 $ 39,382,064
============= ============= ============= =============
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
STATEMENTS OF CHANGES IN NET ASSETS
For the Periods Ended March 31, 1997 and September 30, 1996
=========================================================================================================================
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, 1997 Sept. 30, Mar. 31, 1997 Sept. 30,
(Unaudited) 1996 (Unaudited) 1996
- -------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
FROM OPERATIONS:
Net investment income ................................ $ 1,626,508 $ 3,376,540 $ 386,955 $ 941,495
Net realized gains (losses) from security transactions 147,179 295,706 (1,977) 72,164
Net change in unrealized
appreciation/depreciation on investments ........... (600,062) (1,807,714) (17,546) (24,764)
------------ ------------ ------------ ------------
Net increase in net assets from operations .............. 1,173,625 1,864,532 367,432 988,895
------------ ------------ ------------ ------------
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income, Class A .................. (1,605,979) (3,339,635) (368,340) (930,066)
From net investment income, Class C .................. (20,529) (36,905) (18,615) (11,429)
------------ ------------ ------------ ------------
Decrease in net assets from distributions to shareholders (1,626,508) (3,376,540) (386,955) (941,495)
------------ ------------ ------------ ------------
FROM CAPITAL SHARE TRANSACTIONS (NOTE 5):
CLASS A
Proceeds from shares sold ............................ 4,791,689 19,564,015 15,224,340 12,919,191
Net asset value of shares issued in
reinvestment of distributions to shareholders ...... 1,433,642 2,911,115 340,835 816,771
Payments for shares redeemed ......................... (8,121,455) (21,856,049) (10,008,997) (22,803,135
------------ ------------ ------------ ------------
Net increase (decrease) in net assets
from Class A share transactions ...................... (1,896,124) 619,081 5,556,178 (9,067,173)
------------ ------------ ------------ ------------
CLASS C
Proceeds from shares sold ............................ 76,110 384,845 468,295 617,534
Net asset value of shares issued in
reinvestment of distributions to shareholders ...... 19,866 35,459 14,566 8,075
Payments for shares redeemed ......................... (91,853) (228,470) (389,796) (84,110)
------------ ------------ ------------ ------------
Net increase in net assets
from Class C share transactions ...................... 4,123 191,834 93,065 541,499
------------ ------------ ------------ ------------
Net increase (decrease) in net assets
from capital share transactions ...................... (1,892,001) 810,915 5,649,243 (8,525,674)
------------ ------------ ------------ ------------
TOTAL INCREASE (DECREASE) IN NET ASSETS ................. (2,344,884) (701,093) 5,629,720 (8,478,274)
NET ASSETS:
Beginning of period .................................. 56,865,943 57,567,036 12,360,445 20,838,719
------------ ------------ ------------ ------------
End of period ........................................ $ 54,521,059 $ 56,865,943 $ 17,990,165 $ 12,360,445
============ ============ ============ ============
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
STATEMENTS OF CHANGES IN NET ASSETS
For the Periods Ended March 31, 1997 and September 30, 1996
======================================================================================================================
GLOBAL BOND FUND
======================================================================================================================
Six Months Year
Ended Ended
Mar. 31, 1997 Sept. 30,
(Unaudited) 1996
- --------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
FROM OPERATIONS:
Net investment income ........................................................... $ 453,724 $ 937,874
Net realized gains (losses) from security transactions .......................... 260,223 (93,933)
Net realized losses from foreign currency transactions .......................... (207,192) (235,290)
Net change in unrealized appreciation/depreciation on investments ............... (907,264) 161,908
Net change in unrealized appreciation/depreciation on translation of assets
and liabilities in foreign currencies ......................................... 60,957 57,520
-------------- -----------
Net increase (decrease) in net assets from operations .............................. (339,552) 828,079
-------------- -----------
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income, Class A ............................................. (191,206) (173,473)
From net investment income, Class C ............................................. (98,244) (51,783)
From net realized gains from security transactions, Class A ..................... (313,221) --
From net realized gains from security transactions, Class C ..................... (160,936) --
-------------- -----------
Decrease in net assets from distributions to shareholders .......................... (763,607) (225,256)
-------------- -----------
FROM CAPITAL SHARE TRANSACTIONS (NOTE 5):
CLASS A
Proceeds from shares sold ....................................................... 1,380,129 2,196,018
Net asset value of shares issued in reinvestment of distributions to shareholders 457,466 167,215
Payments for shares redeemed .................................................... (3,378,043) (3,249,417)
-------------- -----------
Net decrease in net assets from Class A share transactions ......................... (1,540,448) (886,184)
-------------- -----------
CLASS C
Proceeds from shares sold ....................................................... 821,998 2,001,544
Net asset value of shares issued in reinvestment of distributions to shareholders 253,785 50,833
Payments for shares redeemed .................................................... (441,779) (895,367)
-------------- -----------
Net increase in net assets from Class C share transactions ......................... 634,004 1,157,010
-------------- -----------
Net increase (decrease) in net assets from capital share transactions .............. (906,444) 270,826
-------------- -----------
TOTAL INCREASE (DECREASE) IN NET ASSETS ............................................ (2,009,603) 873,649
NET ASSETS:
Beginning of period ............................................................. 18,688,693 17,815,044
-------------- -----------
End of period ................................................................... $ 16,679,090 $18,688,693
============== ===========
UNDISTRIBUTED NET INVESTMENT INCOME ................................................ $ 452,181 $ 287,907
============== ===========
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
SHORT TERM GOVERNMENT INCOME FUND
FINANCIAL HIGHLIGHTS
============================================================================================================================
Per Share Data for a Share Outstanding Throughout Each Period
============================================================================================================================
Six Months
Ended
Mar. 31, Year Ended September 30,
1997
(Unaudited) 1996 1995 1994 1993 1992
- ----------------------------------------------------------------------------------------------------------------------------
<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 ..................... 0.022 0.044 0.046 0.027 0.022 0.035
---------- ---------- --------- --------- --------- ---------
Dividends from net investment income....... (0.022) (0.044) (0.046) (0.027) (0.022) (0.035)
---------- ---------- --------- --------- --------- ---------
Net asset value at end of period........... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
========== ========== ========= ========= ========= =========
Total return .............................. 4.39%(A) 4.51% 4.69% 2.72% 2.24% 3.55%
========== ========== ========= ========= ========= =========
Net assets at end of period (000's) ....... $ 97,094 $ 91,439 $ 87,141 $ 89,708 $96,962 $91,519
---------- ---------- --------- --------- --------- ---------
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................................ 4.35%(A) 4.42% 4.59% 2.69% 2.22% 3.51%
<FN>
(A) Annualized.
</FN>
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
INSTITUTIONAL GOVERNMENT INCOME FUND
FINANCIAL HIGHLIGHTS
==================================================================================================================================
Per Share Data for a Share Outstanding Throughout Each Period
==================================================================================================================================
Six Months
Ended
Mar. 31, Year Ended September 30,
1997
(Unaudited) 1996 1995 1994 1993 1992
- ----------------------------------------------------------------------------------------------------------------------------------
<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...................... 0.025 0.051 0.053 0.034 0.029 0.040
---------- ---------- --------- --------- --------- ---------
Dividends from net investment income....... (0.025) (0.051) (0.053) (0.034) (0.029) (0.040)
---------- ---------- --------- --------- --------- ---------
Net asset value at end of period........... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
========== ========== ========= ========= ========= =========
Total return............................... 5.02%(B) 5.18% 5.42% 3.43% 2.96% 4.08%
========== ========== ========= ========= ========= =========
Net assets at end of period (000's) ....... $ 51,608 $ 39,382 $ 36,009 $ 41,769 $34,610 $43,432
========== ========== ========= ========= ========= =========
Ratio of expenses to average net assets(A) 0.40%(B) 0.40% 0.40% 0.40% 0.40% 0.37%
Ratio of net investment income to average net assets 4.97%(B) 5.06% 5.30% 3.41% 2.92% 4.04%
<FN>
(A) Absent fee waivers by the Adviser, the ratios of expenses to average net
assets would have been 0.48%(B) for the six months ended March 31, 1997 and
0.49%, 0.42%, 0.42%, 0.48% and 0.43% for the years ended September 30, 1996,
1995, 1994, 1993 and 1992, respectively (Note 4).
(B) Annualized.
</FN>
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
INTERMEDIATE TERM GOVERNMENT INCOME FUND
FINANCIAL HIGHLIGHTS - CLASS A
==================================================================================================================================
Per Share Data for a Share Outstanding Throughout Each Period
==================================================================================================================================
Six Months
Ended
Mar. 31, Year Ended September 30,
1997
(Unaudited) 1996 1995 1994 1993 1992
- ----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Net asset value at beginning of period..... $ 10.49 $ 10.73 $ 10.14 $ 11.59 $ 11.10 $ 10.45
---------- ---------- --------- --------- --------- ---------
Income from investment operations:
Net investment income................... 0.30 0.61 0.64 0.56 0.60 0.68
Net realized and unrealized gains (losses)
on investments........................ (0.09) (0.24) 0.59 (1.32) 0.49 0.65
---------- ---------- --------- --------- --------- ---------
Total from investment operations........... 0.21 0.37 1.23 (0.76) 1.09 1.33
---------- ---------- --------- --------- --------- ---------
Less distributions:
Dividends from net investment income.... (0.30) (0.61) (0.64) (0.56) (0.60) (0.68)
Distributions from net realized gains... -- -- -- (0.13) -- --
---------- ---------- --------- --------- --------- ---------
Total distributions........................ (0.30) (0.61) (0.64) (0.69) (0.60) (0.68)
---------- ---------- --------- --------- --------- ---------
Net asset value at end of period........... $ 10.40 $ 10.49 $ 10.73 $ 10.14 $ 11.59 $ 11.10
========== ========== ========= ========= ========= =========
Total return(A) ........................... 4.06%(B) 3.55% 12.52% (6.76%) 10.15% 13.27%
========== ========== ========= ========= ========= =========
Net assets at end of period (000's)........ $ 53,753 $ 56,095 $ 56,969 $ 64,395 $89,666 $59,290
========== ========== ========= ========= ========= =========
Ratio of expenses to average net assets.... 0.99%(B) 0.99% 0.99% 0.99% 0.99% 1.00%
Ratio of net investment income to average
net assets............................... 5.76%(B) 5.75% 6.17% 5.17% 5.31% 6.40%
Portfolio turnover rate.................... 39%(B) 70% 58% 236% 255% 76%
<FN>
(A) The total returns shown do not include the effect of applicable sales loads.
(B) Annualized.
</FN>
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
INTERMEDIATE TERM GOVERNMENT INCOME FUND
FINANCIAL HIGHLIGHTS - CLASS C
===========================================================================================================================
Per Share Data for a Share Outstanding Throughout Each Period
===========================================================================================================================
Six Months Year Year Period
Ended Ended Ended Ended
Mar. 31, 1997 Sept. 30, Sept. 30, Sept. 30,
(Unaudited) 1996 1995 1994(A)
- ---------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Net asset value at beginning of period......... $ 10.49 $ 10.73 $ 10.14 $ 11.27
------------ -------------- ------------- -------------
Income from investment operations:
Net investment income....................... 0.28 0.56 0.59 0.34
Net realized and unrealized gains (losses)
on investments............................ (0.09) (0.24) 0.59 (1.13)
------------ -------------- ------------- -------------
Total from investment operations............... 0.19 0.32 1.18 (0.79)
------------ -------------- ------------- -------------
Less distributions:
Dividends from net investment income........ (0.28) (0.56) (0.59) (0.34)
------------ -------------- ------------- -------------
Total distributions............................ (0.28) (0.56) (0.59) (0.34)
------------ -------------- ------------- -------------
Net asset value at end of period............... $ 10.40 $ 10.49 $ 10.73 $ 10.14
============ ============== ============= =============
Total return(B) ............................... 3.51%(D) 3.03% 11.96% (10.38%)(D)
============ ============== ============= =============
Net assets at end of period (000's)............ $ 768 $ 771 $ 598 $ 508
============ ============== ============= =============
Ratio of expenses to average net assets(C) .... 1.53%(D) 1.49% 1.48% 1.46%(D)
Ratio of net investment income to average net assets 5.21%(D) 5.25% 5.60% 4.89%(D)
Portfolio turnover rate........................ 39%(D) 70% 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 3.19%(D) for the six
months ended March 31, 1997 and 2.96%, 3.57% and 2.41%(D) for the periods
ended September 30, 1996, 1995 and 1994, respectively (Note 4).
(D) Annualized.
</FN>
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
ADJUSTABLE RATE U.S. GOVERNMENT SECURITIES FUND
FINANCIAL HIGHLIGHTS - CLASS A
==============================================================================================================================
Per Share Data for a Share Outstanding Throughout Each Period
==============================================================================================================================
Six Months Year Year Year Period
Ended Ended Ended Ended Ended
Mar. 31, 1997 Sept. 30, Sept. 30, Sept. 30, Sept. 30,
(Unaudited) 1996 1995 1994 1993(A)
- ------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Net asset value at beginning of period ......... $ 9.81 $ 9.78 $ 9.82 $ 10.01 $ 10.00
---------- --------- ---------- --------- ----------
Income from investment operations:
Net investment income ....................... 0.29 0.57 0.55 0.39 0.28
Net realized and unrealized gains (losses)
on investments............................. -- 0.03 (0.04) (0.18) 0.01
---------- --------- ---------- --------- ----------
Total from investment operations ............... 0.29 0.60 0.51 0.21 0.29
---------- --------- ---------- --------- ----------
Less distributions:
Dividends from net investment income......... (0.29) (0.57) (0.55) (0.39) (0.28)
Distributions from net realized gains........ -- -- -- (0.01) --
---------- --------- ---------- --------- ----------
Total distributions ............................ (0.29) (0.57) (0.55) (0.40) (0.28)
---------- --------- ---------- --------- ----------
Net asset value at end of period ............... $ 9.81 $ 9.81 $ 9.78 $ 9.82 $ 10.01
========== ========= ========== ========= ==========
Total return(B) ................................ 5.90%(D) 6.32% 5.33% 2.09% 4.56%(D)
========== ========= ========== ========= ==========
Net assets at end of period (000's) ............ $ 17,269 $ 11,732 $ 20,752 $ 37,572 $24,400
========== ========= ========== ========= ==========
Ratio of expenses to average net assets(C) ..... 0.75%(D) 0.75% 0.75% 0.68% 0.22%(D)
Ratio of net investment income to average net assets 5.82%(D) 5.91% 5.57% 3.91% 4.17%(D)
Portfolio turnover rate ........................ 83%(D) 44% 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 1.70%(D) for the six
months ended March 31, 1997 and 1.46%, 1.21%, 0.78% and 1.18%(D) for the
periods ended September 30, 1996, 1995, 1994 and 1993, respectively (Note 4).
(D) Annualized.
</FN>
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
ADJUSTABLE RATE U.S. GOVERNMENT SECURITIES FUND
FINANCIAL HIGHLIGHTS - CLASS C
=========================================================================================================================
Per Share Data for a Share Outstanding Throughout Each Period
=========================================================================================================================
Six Months Year Period
Ended Ended Ended
Mar. 31, 1997 Sept. 30, Sept. 30,
(Unaudited) 1996 1995(A)
- -------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Net asset value at beginning of period ................. $ 9.81 $ 9.78 $ 9.76
-------------- --------------- ---------------
Income from investment operations:
Net investment income ............................... 0.26 0.52 0.22
Net realized and unrealized gains (losses) on investments (0.01) 0.03 0.02
-------------- --------------- ---------------
Total from investment operations ....................... 0.25 0.55 0.24
-------------- --------------- ---------------
Less distributions:
Dividends from net investment income................. (0.26) (0.52) (0.22)
-------------- --------------- ---------------
Total distributions .................................... (0.26) (0.52) (0.22)
-------------- --------------- ---------------
Net asset value at end of period ....................... $ 9.80 $ 9.81 $ 9.78
============== =============== ===============
Total return(B) ........................................ 5.14%(D) 5.77% 5.87%(D)
============== =============== ===============
Net assets at end of period (000's) .................... $ 721 $ 629 $ 86
============== =============== ===============
Ratio of expenses to average net assets(C) ............. 1.29%(D) 1.24% 1.24%(D)
Ratio of net investment income to average net assets ... 5.26%(D) 5.17% 5.38%(D)
Portfolio turnover rate ................................ 83%(D) 44% 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 3.71%(D) for the six months
ended March 31, 1997 and 7.58% and 18.84%(D) for the periods ended
September 30, 1996 and 1995, respectively (Note 4).
(D) Annualized.
</FN>
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
GLOBAL BOND FUND
FINANCIAL HIGHLIGHTS - CLASS A
=============================================================================================================================
Per Share Data for a Share Outstanding Throughout Each Period
=============================================================================================================================
Six Months Year Period
Ended Ended Ended
Mar. 31, 1997 Sept. 30, Sept. 30,
(Unaudited) 1996 1995(A)
- ------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Net asset value at beginning of period.................. $ 11.03 $ 10.64 $ 10.00
-------------- --------------- ---------------
Income from investment operations:
Net investment income................................ 0.29 0.57 0.35
Net realized and unrealized gains (losses) on
investments and foreign currency................... (0.46) (0.05) 0.64
-------------- --------------- ---------------
Total from investment operations........................ (0.17) 0.52 0.99
-------------- --------------- ---------------
Less distributions:
Dividends from net investment income................. (0.17) (0.13) (0.35)
Distributions from net realized gains................ (0.28) -- --
-------------- --------------- ---------------
Total distributions..................................... (0.45) (0.13) (0.35)
-------------- --------------- ---------------
Net asset value at end of period........................ $ 10.41 $ 11.03 $ 10.64
============== =============== ===============
Total return(B) ........................................ (3.51%)(D) 4.88% 14.89%(D)
============== =============== ===============
Net assets at end of period (000's)..................... $ 10,597 $ 12,841 $ 13,297
============== =============== ===============
Ratio of expenses to average net assets(C) ............. 1.35%(D) 1.35% 1.33%(D)
Ratio of net investment income to average net assets.... 5.09%(D) 4.97% 4.30%(D)
Portfolio turnover rate................................. 194%(D) 235% 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 1.58%(D) for the six months
ended March 31, 1997 and 1.50% and 2.47%(D) for the periods ended
September 30, 1996 and 1995, respectively (Note 4).
(D) Annualized.
</FN>
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
GLOBAL BOND FUND
FINANCIAL HIGHLIGHTS - CLASS C
============================================================================================================================
Per Share Data for a Share Outstanding Throughout Each Period
============================================================================================================================
Six Months Year Period
Ended Ended Ended
Mar. 31, 1997 Sept. 30, Sept. 30,
(Unaudited) 1996 1995(A)
- ----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Net asset value at beginning of period.................. $ 10.92 $ 10.59 $ 10.00
-------------- --------------- ---------------
Income from investment operations:
Net investment income................................ 0.25 0.51 0.38
Net realized and unrealized gains (losses) on
investments and foreign currency................... (0.45) (0.08) 0.57
-------------- --------------- ---------------
Total from investment operations........................ (0.20) 0.43 0.95
-------------- --------------- ---------------
Less distributions:
Dividends from net investment income................. (0.17) (0.10) (0.36)
Distributions from net realized gains................ (0.28) -- --
-------------- --------------- ---------------
Total distributions..................................... (0.45) (0.10) (0.36)
-------------- --------------- ---------------
Net asset value at end of period........................ $ 10.27 $ 10.92 $ 10.59
============== =============== ===============
Total return(B) ........................................ (4.10%)(D) 4.10% 14.25%(D)
============== =============== ===============
Net assets at end of period (000's)..................... $ 6,082 $ 5,847 $ 4,518
============== =============== ===============
Ratio of expenses to average net assets(C) ............. 2.00%(D) 2.00% 1.98%(D)
Ratio of net investment income to average net assets.... 4.43%(D) 4.34% 3.70%(D)
Portfolio turnover rate................................. 194%(D) 235% 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 2.07%(D) for the six
months ended March 31, 1997 and 2.03% and 3.45%(D) for the periods ended
September 30, 1996 and 1995, respectively (Note 4).
(D) Annualized.
</FN>
See accompanying notes to financial statements.
</TABLE>
<PAGE>
NOTES TO FINANCIAL STATEMENTS
March 31, 1997 (Unaudited)
==============================================================================
1. ORGANIZATION
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 Countrywide Investment Trust (the Trust). The Trust
(formerly Midwest Trust) is registered under the Investment Company Act of 1940
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 Income 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 0.35% 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
identical interests 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.
2. SIGNIFICANT ACCOUNTING POLICIES
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 for which
market quotations are readily available are valued at their most recent bid
prices as obtained from one or more of the major market makers for such
securities. Securities for which market quotations are not readily available are
valued at their fair value as determined in good faith in accordance with
consistently applied procedures established by and under the general supervision
of the Board of Trustees. The U.S. dollar value of foreign securities and
forward foreign currency exchange contracts in the Global Bond Fund is
determined using spot and forward currency exchange rates, respectively,
supplied by a quotation service.
<PAGE>
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.
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 each class of shares of the Intermediate Term
Government Income Fund, the Adjustable Rate U.S. Government Securities Fund and
the Global Bond Fund is also calculated daily 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.
Distributions to shareholders -- Dividends arising from net investment income
are declared daily and paid on the last business day of each month to
shareholders of 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 and paid annually to shareholders of the Global
Bond Fund. With respect to each Fund, net realized short-term capital gains, if
any, may be distributed throughout 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 of shares 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 management 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 applicable 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, 1997:
<TABLE>
<CAPTION>
- ---------------------------------------------------------------------------------------------------------------
Adjustable
Intermediate Rate U.S.
Term Government Global
Government Securities Bond
Income Fund Fund Fund
<S> <C> <C> <C>
Gross unrealized appreciation........................... $ 418,420 $ 121,824 $ 67,329
Gross unrealized depreciation........................... (807,778) (14,769) (648,812)
-------------- --------------- ---------------
Net unrealized appreciation (depreciation) .......... $ (389,358) $ 107,055 $ (581,483)
============== =============== ===============
Federal income tax cost................................. $ 52,299,314 $ 14,723,393 $ 16,236,178
============== =============== ===============
</TABLE>
As of September 30, 1996, the Institutional Government Income Fund had capital
loss carryforwards for federal income tax purposes of $24,902, none of which
will expire prior to September 30, 2001. As of September 30, 1996, 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 $2,899,292 and $1,249,150, respectively, none of which will expire prior to
September 30, 2003. These capital loss carryforwards may be utilized in the
current and future years to offset net realized capital gains prior to
distributing such gains to shareholders.
3. INVESTMENT TRANSACTIONS
During the six months ended March 31, 1997, purchases and proceeds from sales
and maturities of investment securities, other than short-term investments,
amounted to $10,264,037 and $13,662,500, respectively, for the Intermediate Term
Government Income Fund, $6,674,693 and $4,835,539, respectively, for the
Adjustable Rate U.S. Government Securities Fund and $16,161,685 and $17,957,664,
respectively, for the Global Bond Fund.
4. TRANSACTIONS WITH AFFILIATES
The Chairman and the President of the Trust are also officers of Countrywide
Financial Services, Inc., whose subsidiaries include Countrywide Investments,
Inc. (the Adviser), the Trust's investment adviser and principal underwriter,
and Countrywide Fund Services, Inc. (CFS), the Trust's transfer agent,
shareholder service agent and accounting services agent. Countrywide Financial
Services, Inc. is a wholly-owned subsidiary of Countrywide Credit Industries,
Inc., a New York Stock Exchange listed company principally engaged in the
business of residential mortgage lending.
MANAGEMENT AND SUBADVISORY AGREEMENTS
Each Fund's investments are supervised 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 0.50% of its
respective average daily net assets up to $50 million; 0.45% of such net assets
from $50 million to $150 million; 0.40% of such net assets from $150 million to
$250 million; and 0.375% of such net assets in excess of $250 million. The
Institutional Government Income Fund pays the Adviser a fee, which is computed
and accrued daily and paid monthly, at an annual rate of 0.20% 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 0.70% of its average
daily net assets up to $100 million and 0.60% of such net assets in excess of
$100 million.
The Adviser retains Rogge Global Partners, plc (Rogge) to manage the Global Bond
Fund's investments. The Adviser (not the Fund) pays Rogge a fee, which is
computed and accrued daily and paid monthly, at an annual rate of 0.35% of the
Fund's average daily net assets up to $100 million and 0.30% of such net assets
in excess of $100 million.
<PAGE>
In order to voluntarily reduce operating expenses during the six months ended
March 31, 1997, the Adviser waived $17,376 of its advisory fees for the
Institutional Government Income Fund; reimbursed $6,546 of Class C expenses for
the Intermediate Term Government Income Fund; waived its entire advisory fee of
$33,309 and reimbursed $30,111 of common expenses and $5,291 of Class C expenses
for the Adjustable Rate U.S. Government Securities Fund; and waived $5,966 of
its advisory fees and reimbursed $10,697 of Class A expenses for the Global Bond
Fund.
TRANSFER AGENT AND SHAREHOLDER SERVICE AGREEMENT
Under the terms of the Transfer, Dividend Disbursing, Shareholder Service and
Plan Agency Agreement between the Trust and CFS, CFS 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. For these services, CFS receives a monthly fee 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 CFS,
CFS calculates the daily net asset value per share and maintains the financial
books and records of each Fund. For these services, CFS receives a monthly fee,
based on current asset levels, of $3,000 per month from each of the Short Term
Government Income Fund and the Institutional Government Income Fund, $4,250 per
month from each of the Intermediate Term Government Income Fund and the
Adjustable Rate U.S. Government Securities Fund, and $4,750 per month from the
Global Bond Fund. In addition, each Fund pays certain out-of-pocket expenses
incurred by CFS 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 $2,266, $1,419
and $405 from underwriting and broker commissions on the sale of Class A 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, 1997. In addition, the Adviser collected $354, $287 and
$323 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.
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 0.10% of the Institutional
Government Income Fund's average daily net assets and 0.35% of each of the other
Funds' average daily net assets attributable to such 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.
<PAGE>
5. 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, 1997 and September 30, 1996:
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------
Intermediate Term Adjustable Rate Global
Government U.S. Government Bond
Income Fund Securities Fund Fund
- ------------------------------------------------------------------------------------------------------------------------------
Six Months Six Months Six Months
Ended Year Ended Year Ended Year
Mar. 31, Ended Mar. 31, Ended Mar. 31, Ended
1997 Sept. 30, 1997 Sept. 30, 1997 Sept. 30,
(Unaudited) 1996 (Unaudited) 1996 (Unaudited) 1996
- ------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
CLASS A
Shares sold......................... 452,732 1,824,629 1,549,532 1,317,967 126,713 202,237
Shares issued in reinvestment of
distributions to shareholders..... 135,455 274,432 34,697 83,368 42,008 15,285
Shares redeemed..................... (766,941) (2,059,645) (1,018,694) (2,327,350) (315,579) (302,506)
------------ ----------- ----------- ------------ ----------- -----------
Net increase (decrease) in shares
outstanding....................... (178,754) 39,416 565,535 (926,015) (146,858) (84,984)
Shares outstanding, beginning of period 5,348,350 5,308,934 1,195,580 2,121,595 1,164,325 1,249,309
------------ ----------- ----------- ------------ ----------- -----------
Shares outstanding, end of period... 5,169,596 5,348,350 1,761,115 1,195,580 1,017,467 1,164,325
============ =========== =========== ============ =========== ===========
CLASS C
Shares sold......................... 7,197 36,099 47,693 63,042 73,649 187,748
Shares issued in reinvestment of
distributions to shareholders...... 1,877 3,345 1,483 824 23,586 4,672
Shares redeemed..................... (8,697) (21,699) (39,694) (8,583) (40,673) (83,836)
------------ ----------- ----------- ------------ ----------- -----------
Net increase in shares outstanding.. 377 17,745 9,482 55,283 56,562 108,584
Shares outstanding, beginning of period 73,518 55,773 64,117 8,834 535,423 426,839
------------ ----------- ----------- ------------ ----------- -----------
Shares outstanding, end of period... 73,895 73,518 73,599 64,117 591,985 535,423
============ =========== =========== ============ =========== ===========
</TABLE>
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.
6. FOREIGN CURRENCY TRANSLATION
With respect to the Global Bond Fund, amounts denominated in or expected to
settle in foreign currencies are translated into U.S. dollars based on exchange
rates on the following basis:
A. The market values of investment securities and other assets
and liabilities are translated at the closing rate of
exchange each day.
B. Purchases and sales of investment securities and income and
expenses are translated at the rate of exchange prevailing
on the respective dates of such transactions.
C. The Fund does not isolate 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. Such fluctuations are included with
the net realized and unrealized gains or losses from
investments. Reported net realized foreign exchange gains or
losses arise from 1) sales of foreign currencies, 2) currency
gains or losses realized between the trade and settlement
dates on securities transactions, and 3) 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. Reported net unrealized foreign exchange gains or
losses arise from changes in the value of assets and
liabilities, other than investment securities, resulting from
changes in exchange rates.
<PAGE>
7. 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.
At March 31, 1997, the Global Bond Fund had forward foreign currency exchange
contracts outstanding as follows:
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------------------------------------
NET
UNREALIZED
SETTLEMENT TO RECEIVE INITIAL MARKET APPRECIATION
DATE (TO DELIVER) VALUE VALUE (DEPRECIATION)
- -----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
CONTRACTS TO SELL
04/01/97 (12,133) DKK $ (1,882) $ (1,909) $ (27)
=============
04/18/97 (33,330) CAD (24,562) (24,117) 445
=============
04/18/97 (10,816,473) DEM (6,459,103) (6,474,549) (15,446)
=============
04/18/97 (1,310,794) DKK (205,873) (206,201) (328)
=============
04/18/97 (562,428) GBP (899,974) (922,158) (22,184)
=============
04/18/97 (3,125,446,634) ITL (1,881,666) (1,868,023) 13,643
=============
04/18/97 (211,464,070) JPY (1,744,698) (1,712,796) 31,902
============= ------------- ------------- -------------
Total sell contracts (11,217,758) (11,209,753) 8,005
------------- ------------- -------------
CONTRACTS TO BUY
04/01/97 5,416,840 DKK 841,413 852,253 10,840
=============
04/18/97 8,671,649 DEM 5,108,564 5,190,694 82,130
=============
04/18/97 3,236 GBP 5,282 5,306 24
=============
04/18/97 2,234,883,635 ITL 1,315,556 1,335,750 20,194
=============
04/18/97 392,856,669 JPY 3,238,719 3,182,021 (56,698)
=============
04/18/97 4,655,959 NOK 701,434 705,447 4,013
------------- ------------- ------------- -------------
Total buy contracts 11,210,968 11,271,471 60,503
------------- ------------- -------------
NET CONTRACTS $ (6,790) $ 61,721 $ 68,508
============= ============= =============
<FN>
CAD-Canadian Dollar ITL-Italian Lira
DEM-German Mark JPY-Japanese Yen
DKK-Danish Krone NOK-Norwegian Krone
GBP-British Pound Sterling
</FN>
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
SHORT TERM GOVERNMENT INCOME FUND
PORTFOLIO OF INVESTMENTS
March 31, 1997 (Unaudited)
==============================================================================================================
Par Yield To Market
Value U.S. TREASURY OBLIGATIONS-- 38.3% Maturity(1) Value
- --------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
$ 1,800,000 U.S. Treasury Notes, 6.125%, 5/31/97............................. 5.480% $ 1,801,813
3,000,000 U.S. Treasury Notes, 6.375%, 6/30/97............................. 5.274% 3,007,601
5,000,000 U.S. Treasury Notes, 5.625%, 6/30/97............................. 5.348% 5,002,728
5,000,000 U.S. Treasury Notes, 8.50%, 7/15/97.............................. 5.430% 5,042,978
5,000,000 U.S. Treasury Notes, 5.875%, 7/31/97............................. 5.421% 5,007,143
5,000,000 U.S. Treasury Notes, 6.50%, 8/15/97.............................. 5.434% 5,019,271
2,250,000 U.S. Treasury Notes, 5.50%, 9/30/97.............................. 5.509% 2,249,775
5,000,000 U.S. Treasury Notes, 5.75%, 9/30/97.............................. 5.465% 5,006,644
5,000,000 U.S. Treasury Notes, 8.75%, 10/15/97............................. 5.553% 5,082,745
- --------------- ---------------
$ 37,050,000 TOTAL U.S. TREASURY OBLIGATIONS
===============
(Amortized Cost $37,220,698)..................................... $ 37,220,698
---------------
<CAPTION>
==============================================================================================================
Face Market
Amount REPURCHASE AGREEMENTS(2)-- 61.2% Value
- --------------------------------------------------------------------------------------------------------------
<S> <C> <C>
$ 13,800,000 Prudential Securities, Inc., 6.35%, dated 3/31/97, due 4/1/97,
repurchase proceeds $13,802,434......................................... $ 13,800,000
14,300,000 Fuji Securities, Inc., 6.50%, dated 3/31/97, due 4/1/97,
repurchase proceeds $14,302,582......................................... 14,300,000
3,682,000 Dean Witter Reynolds, Inc., 6.00%, dated 3/31/97, due 4/1/97,
repurchase proceeds $3,682,614.......................................... 3,682,000
13,800,000 Bankers Trust Securities Corp., 5.45%, dated 3/26/97, due 4/2/97,
repurchase proceeds $13,814,624......................................... 13,800,000
13,800,000 Merrill Lynch, Pierce, Fenner & Smith, Inc., 5.625%, dated 3/31/97,
due 4/7/97, repurchase proceeds $13,815,094............................. 13,800,000
- --------------- ---------------
$ 59,382,000 TOTAL REPURCHASE AGREEMENTS ............................................... $ 59,382,000
=============== ---------------
TOTAL INVESTMENTS AND REPURCHASE AGREEMENTS AT VALUE-- 99.5% ............. $ 96,602,698
OTHER ASSETS IN EXCESS OF LIABILITIES-- 0.5% .............................. 491,087
---------------
NET ASSETS-- 100.0% ....................................................... $ 97,093,785
===============
<FN>
(1) Yield to maturity at date of purchase.
(2) Repurchase agreements are fully collateralized by U.S. Government
obilgations.
</FN>
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
INSTITUTIONAL GOVERNMENT INCOME FUND
PORTFOLIO OF INVESTMENTS
March 31, 1997 (Unaudited)
==============================================================================================================
Par Yield To Market
Value U.S. GOVERNMENT AGENCY ISSUES-- 40.9% Maturity(1) Value
- --------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
$ 3,000,000 Federal Home Loan Mortgage Corp. Discount Notes, 4/18/97......... 5.300% $ 2,992,493
1,000,000 Federal National Mortgage Assoc. Notes, 6.75%, 4/22/97........... 5.373% 1,000,749
1,000,000 Federal Home Loan Bank Notes, 5.41%, 5/1/97...................... 5.521% 999,726
345,000 Federal Farm Credit Bank Notes, 5.34%, 5/1/97.................... 5.508% 344,924
1,000,000 Federal Home Loan Bank Notes, 5.555%, 5/22/97.................... 5.432% 1,000,168
2,000,000 Federal Farm Credit Bank Notes, 5.60%, 6/3/97.................... 5.388% 2,000,687
3,000,000 Student Loan Marketing Assoc. Discount Notes, 6/12/97............ 5.380% 2,967,720
900,000 Federal National Mortgage Assoc. Notes, 6.20%, 6/17/97........... 5.420% 901,367
2,000,000 Federal National Mortgage Assoc. Discount Notes, 6/18/97......... 5.310% 1,976,990
2,000,000 Federal Home Loan Bank Discount Notes, 6/23/97................... 5.250% 1,975,792
172,793 Federal Home Loan Mortgage Corp. Series #M14862, 6.50%, 8/1/97... 5.565% 172,757
1,000,000 Federal National Mortgage Assoc. Discount Notes, 8/14/97......... 5.370% 979,862
136,747 Federal Home Loan Mortgage Corp. Series #M15133, 6.50%, 9/1/97... 6.437% 136,782
175,000 Federal Home Loan Bank Notes, 5.75%, 9/5/97...................... 5.736% 175,000
500,000 Private Exempt Funding Corp. Notes, 8.95%, 10/31/97.............. 5.720% 509,007
1,273,721 Federal Home Loan Mortgage Corp. Series #M90155, 5.50%, 11/1/97.. 5.876% 1,270,970
114,660 Federal Home Loan Mortgage Corp. Series #M15799, 5.50%, 11/1/97.. 6.033% 114,313
1,000,000 Federal Home Loan Bank Notes, 5.61%, 12/18/97.................... 5.610% 1,000,000
600,000 Federal National Mortgage Assoc. Notes, 5.375%, 1/13/98.......... 5.587% 599,000
- --------------- ---------------
$ 21,217,921 TOTAL U.S. GOVERNMENT AGENCY ISSUES
===============
(Amortized Cost $21,118,307) .................................... $ 21,118,307
---------------
<CAPTION>
================================================================================================================
Face Market
Amount REPURCHASE AGREEMENTS(2)-- 58.7% Value
- ----------------------------------------------------------------------------------------------------------------
<S> <C> <C>
$ 6,500,000 Prudential Securities, Inc., 6.35%, dated 3/31/97, due 4/1/97,
repurchase proceeds $6,501,147.......................................... $ 6,500,000
7,500,000 Fuji Securities, Inc., 6.50%, dated 3/31/97, due 4/1/97,
repurchase proceeds $7,501,354.......................................... 7,500,000
6,000,000 Daiwa Securities America, Inc., 6.00%, dated 3/31/97, due 4/1/97,
repurchase proceeds $6,001,000.......................................... 6,000,000
4,281,000 Dean Witter Reynolds, Inc., 6.00%, dated 3/31/97, due 4/1/97,
repurchase proceeds $4,281,714.......................................... 4,281,000
6,000,000 Merrill Lynch, Pierce, Fenner & Smith, Inc., 5.625%, dated 3/31/97,
due 4/7/97, repurchase proceeds $6,006,563.............................. 6,000,000
- --------------- ---------------
$ 30,281,000 TOTAL REPURCHASE AGREEMENTS ............................................... $ 30,281,000
=============== ---------------
TOTAL INVESTMENTS AND REPURCHASE AGREEMENTS AT VALUE-- 99.6% ............. $ 51,399,307
OTHER ASSETS IN EXCESS OF LIABILITIES-- 0.4% .............................. 209,188
---------------
NET ASSETS-- 100.0% ....................................................... $ 51,608,495
===============
<FN>
(1) Yield to maturity at date of purchase.
(2) Repurchase agreements are fully collateralized by U.S. Government obligations.
</FN>
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
INTERMEDIATE TERM GOVERNMENT INCOME FUND
PORTFOLIO OF INVESTMENTS
March 31, 1997 (Unaudited)
===============================================================================================================
Par Market
Value INVESTMENTS -- 95.2% Value
- ---------------------------------------------------------------------------------------------------------------
<S> <C> <C>
U.S. TREASURY OBLIGATIONS -- 13.3%
$ 1,000,000 U.S. Treasury Notes, 7.75%, 2/15/01........................................ $ 1,035,000
1,000,000 U.S. Treasury Notes, 8.00%, 5/15/01........................................ 1,045,000
3,000,000 U.S. Treasury Notes, 7.875%, 08/15/01...................................... 3,125,625
2,000,000 U.S. Treasury Notes, 7.50%, 11/15/01....................................... 2,056,876
- --------------- ---------------
$ 7,000,000 TOTAL U.S. TREASURY OBLIGATIONS
- ---------------
(Amortized Cost $7,075,939)................................................ $ 7,262,501
---------------
U.S. GOVERNMENT AGENCY ISSUES -- 81.9%
$ 1,000,000 Federal National Mortgage Assoc. Notes, 7.89%, 2/23/00..................... $ 1,015,630
1,500,000 Federal National Mortgage Assoc. Notes, 6.35%, 10/19/00.................... 1,479,979
2,000,000 Federal Home Loan Bank Notes, 5.58%, 2/23/01............................... 1,914,870
3,000,000 Federal National Mortgage Assoc. Notes, 6.74%, 5/7/01...................... 2,984,597
1,000,000 Student Loan Marketing Assoc. Medium Term Notes, 7.50%, 7/2/01............. 1,020,962
3,000,000 Federal Home Loan Bank Notes, 7.31%, 7/6/01................................ 3,048,438
2,000,000 Federal Home Loan Bank Medium Term Notes, 8.43%, 8/1/01.................... 2,116,062
2,400,000 Federal Home Loan Bank Notes, 6.25%, 9/27/01............................... 2,342,464
1,000,000 Student Loan Marketing Assoc. Medium Term Notes, 6.38%, 12/11/01........... 970,110
2,000,000 Federal National Mortgage Assoc. Notes, 7.55%, 4/22/02..................... 2,053,258
1,000,000 Federal Home Loan Mortgage Corp. Notes, 6.07%, 2/5/03...................... 953,644
1,000,000 Federal National Mortgage Assoc. Notes, 6.72%, 2/25/03..................... 979,559
3,000,000 Federal National Mortgage Assoc. Notes, 6.20%, 7/10/03..................... 2,862,983
2,000,000 Federal National Mortgage Assoc. Notes, 6.25%, 8/12/03..................... 1,911,128
1,500,000 Federal Home Loan Bank Notes, 7.50%, 4/2/04................................ 1,489,105
2,000,000 Federal Home Loan Mortgage Corp. Notes, 8.19%, 10/6/04..................... 2,042,640
2,000,000 Federal Home Loan Mortgage Corp. Notes, 8.53%, 11/18/04.................... 2,056,336
2,000,000 Federal Home Loan Mortgage Corp. Notes, 7.65%, 5/10/05..................... 1,995,814
2,000,000 Federal National Mortgage Assoc. Medium Term Notes, 6.85%, 8/22/05......... 1,969,886
2,000,000 Federal National Mortgage Assoc. Notes, 6.77%, 9/1/05...................... 1,959,710
1,000,000 Federal Home Loan Mortgage Corp. Notes, 6.75%, 1/19/06..................... 950,066
1,400,000 Federal National Mortgage Assoc. Notes, 6.26%, 1/24/06..................... 1,316,760
2,500,000 Federal National Mortgage Assoc. Notes, 6.21%, 1/26/06..................... 2,344,005
1,000,000 Federal Home Loan Mortgage Corp. Notes, 6.345%, 2/15/06.................... 940,131
2,000,000 Federal National Mortgage Assoc. Notes, 6.90%, 12/26/06.................... 1,929,318
- --------------- ---------------
$ 45,300,000 TOTAL U.S. GOVERNMENT AGENCY ISSUES
- ---------------
(Amortized Cost $45,223,375)............................................... $ 44,647,455
---------------
$ 52,300,000 TOTAL INVESTMENTS AT VALUE
===============
(Amortized Cost $52,299,314) ............................................. $ 51,909,956
---------------
<PAGE>
<CAPTION>
INTERMEDIATE TERM GOVERNMENT INCOME FUND (continued)
================================================================================================================
Face Market
Amount REPURCHASE AGREEMENTS(1)-- 6.1% Value
- -----------------------------------------------------------------------------------------------------------------
$ 3,310,000 Dean Witter Reynolds, Inc., 6.25%, dated 3/31/97, due 4/1/97,
repurchase proceeds $3,310,575.......................................... $ 3,310,000
- --------------- ---------------
$ 3,310,000 TOTAL REPURCHASE AGREEMENTS ............................................... $ 3,310,000
=============== ---------------
TOTAL INVESTMENTS AND REPURCHASE AGREEMENTS AT VALUE-- 101.3% ............. $ 55,219,956
LIABILITIES IN EXCESS OF OTHER ASSETS-- (1.3)% ........................... (698,897)
---------------
NET ASSETS-- 100.0% ....................................................... $ 54,521,059
===============
<FN>
(1) Repurchase agreements are fully collateralized by U.S. Government obligations.
</FN>
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
ADJUSTABLE RATE U.S. GOVERNMENT SECURITIES FUND
PORTFOLIO OF INVESTMENTS
March 31, 1997 (Unaudited)
================================================================================================================
Par Market
Value INVESTMENTS -- 82.5% Value
- ----------------------------------------------------------------------------------------------------------------
<S> <C> <C>
ADJUSTABLE RATE U.S. GOVERNMENT AGENCY ISSUES -- 74.1%
$ 1,776,054 Federal Home Loan Mortgage Corp. #350047, 6.38%, 4/1/17.................... $ 1,820,912
1,366,405 Federal National Mortgage Assoc. #70907, 7.50%, 3/1/18..................... 1,411,846
1,298,338 Federal Home Loan Mortgage Corp. #605793, 7.42%, 5/1/18.................... 1,322,682
770,906 Federal National Mortgage Assoc. #70010, 7.32%, 6/1/18..................... 796,771
1,660,081 Federal National Mortgage Assoc. #70614, 7.40%, 10/1/18.................... 1,702,065
1,039,110 Federal National Mortgage Assoc. #124211, 7.34%, 12/1/21................... 1,078,173
1,853,196 Federal Home Loan Mortgage Corp. #846013, 7.90%, 6/1/22.................... 1,918,669
72,901 Government National Mortgage Assoc. #8182, 7.37%,4/20/23................... 74,769
1,140,622 Federal National Mortgage Assoc. #70176, 7.31%, 8/1/27..................... 1,175,834
1,958,465 Federal National Mortgage Assoc. #70243, 7.29%, 3/1/28..................... 2,019,070
- --------------- ---------------
$ 12,936,078 TOTAL ADJUSTABLE RATE U.S. GOVERNMENT AGENCY ISSUES
- ---------------
(Amortized Cost $13,203,053)............................................... $ 13,320,791
--------------
FIXED RATE U.S. GOVERNMENT AGENCY ISSUES -- 8.4%
$ 1,517,732 Federal Home Loan Mortgage Corp. #M90141, 6.50%, 10/1/97
- ---------------
(Amortized Cost $1,520,340)................................................ $ 1,509,657
---------------
$ 14,453,810 TOTAL INVESTMENTS AT VALUE
===============
(Amortized Cost $14,723,393)............................................... $ 14,830,448
--------------
<CAPTION>
===============================================================================================================
Face Market
Amount REPURCHASE AGREEMENTS(1)-- 14.5% Value
- ---------------------------------------------------------------------------------------------------------------
<S> <C> <C>
$ 2,615,000 Dean Witter Reynolds, Inc., 6.25%, dated 3/31/97, due 4/1/97,
repurchase proceeds $2,615,454.......................................... $ 2,615,000
- --------------- ---------------
$ 2,615,000 TOTAL REPURCHASE AGREEMENTS ............................................... $ 2,615,000
=============== ---------------
TOTAL INVESTMENTS AND REPURCHASE AGREEMENTS AT VALUE-- 97.0%..............$ 17,445,448
OTHER ASSETS IN EXCESS OF LIABILITIES-- 3.0% .............................. 544,717
---------------
NET ASSETS-- 100.0% ....................................................... $ 17,990,165
===============
<FN>
(1) Repurchase agreements are fully collateralized by U.S. Government obligations.
</FN>
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
GLOBAL BOND FUND
PORTFOLIO OF INVESTMENTS
March 31, 1997 (Unaudited)
===============================================================================================================
Par Market
Value INVESTMENTS -- 93.9% Value
- ---------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
U.S. TREASURY OBLIGATIONS -- 24.4%
USD 195,000 U.S. Treasury Notes, 6.50%, 5/31/01................................... $ 193,294
USD 655,000 U.S. Treasury Notes, 7.50%, 11/15/01.................................. 673,627
USD 1,490,000 U.S. Treasury Notes, 6.375%, 8/15/02.................................. 1,462,529
USD 928,000 U.S. Treasury Strips, 5/15/04......................................... 571,277
USD 352,000 U.S. Treasury Bonds, 7.875%, 2/15/21.................................. 754,790
USD 855,000 U.S. Treasury Bonds, 6.50%, 11/15/26.................................. 418,600
---------------
TOTAL U.S. TREASURY OBLIGATIONS
(Amortized Cost $4,166,351)........................................... $ 4,074,117
---------------
CORPORATE BONDS -- 2.1%
USD 75,000 Bayerische Landesbank, 6.80%, 9/28/01................................. $ 74,428
USD 75,000 Toronto Dominion Bank, 6.50%, 1/15/07................................. 73,937
USD 100,000 African Development Bank, 6.875%, 10/15/15............................ 92,757
USD 100,000 Cajun Electric Power, 9.52%, 3/15/19.................................. 107,159
---------------
TOTAL CORPORATE BONDS
(Amortized Cost $355,321)............................................. $ 348,281
---------------
FOREIGN GOVERNMENT ISSUES -- 67.4%
CAD 536,090 Government of Canada, 4.25%, 12/1/21.................................. $ 385,548
CAD 552,000 Government of Canada, 8.00%, 6/1/23................................... 431,954
---------------
. 817,502
---------------
DEM 575,000 Federal Republic of Germany, 6.50%, 3/15/00........................... 367,045
DEM 1,880,000 Federal Republic of Germany, 5.875%, 5/15/00.......................... 1,181,147
DEM 595,000 Treuhandanstalt, 7.75%, 10/1/02....................................... 401,352
DEM 401,000 Treuhandanstalt, 7.125%, 1/29/03...................................... 263,377
DEM 1,036,000 Federal Republic of Germany, 6.50%, 7/15/03.......................... 659,767
DEM 505,000 Federal Republic of Germany, 6.25%, 4/26/06........................... 312,161
DEM 905,000 Federal Republic of Germany, 6.25%, 1/4/24............................ 515,099
---------------
3,699,948
---------------
DKK 5,200,000 Government of Denmark, 6.00%, 11/15/02................................ 830,736
DKK 3,739,000 Government of Denmark, 7.00%, 11/10/24................................ 548,857
---------------
1,379,593
---------------
GBP 525,000 U.K. Gilt, 8.50%, 12/7/05............................................. 909,194
GBP 340,000 U.K. Gilt, 7.75%, 9/8/06.............................................. 560,723
GBP 913,000 U.K. Gilt, 7.50%, 12/7/06............................................. 1,484,624
---------------
2,954,541
---------------
ITL 590,000,000 Government of Italy, 9.50%, 2/1/99.................................... 366,431
ITL 125,000,000 Government of Italy, 10.50%, 4/1/05................................... 85,644
---------------
452,075
---------------
<PAGE>
<CAPTION>
GLOBAL BOND FUND (continued)
==============================================================================================================
Par Market
Value INVESTMENTS -- 93.9% Value
- --------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
USD 400,000 United Mexican States, 6.25%, 12/31/19................................ $ 296,043
---------------
NOK 2,600,000 Government of Norway, 6.75%, 1/15/07.................................. 413,293
--------------
SEK 1,400,000 Government of Sweden, 6.00%, 2/9/05................................... 174,946
SEK 1,300,000 Government of Sweden, 6.50%, 10/25/06................................. 667,594
SEK 2,700,000 Government of Sweden, 8.00%, 8/15/07.................................. 376,762
---------------
1,219,302
---------------
TOTAL FOREIGN GOVERNMENT ISSUES
(Amortized Cost $11,714,506).......................................... $ 11,232,297
---------------
TOTAL INVESTMENTS AT VALUE
(Amortized Cost $16,236,178).......................................... $ 15,654,695
OTHER ASSETS IN EXCESS OF LIABILITIES-- 6.1% ......................... 1,024,395
---------------
NET ASSETS-- 100.0% .................................................. $ 16,679,090
===============
<FN>
CAD-Canadian Dollar ITL-Italian Lira
DEM-German Mark NOK-Norwegian Krone
DKK-Danish Krone SEK-Swedish Krona
GBP-British Pound Sterling USD-U.S. Dollar
</FN>
See accompanying notes to financial statements.
</TABLE>
<PAGE>
RESULTS OF SPECIAL MEETING OF SHAREHOLDERS
March 31, 1997 (Unaudited)
==============================================================================
On February 28, 1997, a Special Meeting of Shareholders of the Trust was held
(1) to approve or disapprove a new investment advisory agreement with
Countrywide Investments, Inc. (formerly Midwest Group Financial Services, Inc.),
(2) with respect to the Global Bond Fund, to approve or disapprove a new
subadvisory agreement with Rogge Global Partners plc., (3) to elect eight
trustees and (4) 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 63.2% of the shares
entitled to vote at the meeting. Each of the matters submitted to shareholders
was approved.
The results of the voting for or against the approval of the new investment
advisory agreement by each Fund follows:
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------------------------------------
Number of Shares
For Against Abstain
- -----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Short Term Government Income Fund 57,604,708.440 855,185.410 1,197,449.130
Institutional Government Income Fund 28,694,514.020 59,200.000 90,570.400
Intermediate Term Government 3,495,441.015 33,545.541 117,745.356
Adjustable Rate U.S. Government Securities Fund 817,632.119 1,648.564 12,110.528
Global Bond Fund 1,291,358.798 191.000 358,856.348
- -----------------------------------------------------------------------------------------------------------------
</TABLE>
The results of the voting for or against the approval of the new subadvisory
agreement with Rogge Global Partners plc follows:
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------------------------------------
Number of Shares
For Against Abstain
- -----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Global Bond Fund 1,291,965.786 191.000 358,249.360
- -----------------------------------------------------------------------------------------------------------------
</TABLE>
The results of the voting for the election of trustees follows:
<TABLE>
<CAPTION>
- ----------------------------------------------------------------------------------------------------------------
Withhold
Nominees For Election Authority Status
- ----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Donald L. Bogdon, M.D. 93,368,799.749 1,261,356.920 New Trustee
John R. Delfino 93,422,415.859 1,207,740.810 New Trustee
H. Jerome Lerner 93,449,056.544 1,181,100.125 Incumbent
Robert H. Leshner 93,555,990.735 1,074,165.934 Incumbent
Angelo R. Mozilo 93,419,702.223 1,210,454.446 New Trustee
Oscar P. Robertson 93,530,821.071 1,099,335.598 Incumbent
John F. Seymour, Jr. 93,377,706.761 1,252,449.908 New Trustee
Sebastiano Sterpa 93,389,957.525 1,240,199.144 New Trustee
- ----------------------------------------------------------------------------------------------------------------
</TABLE>
The results of the voting for or against the ratification of Arthur Andersen LLP
as independent public accountants by each Fund follows:
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------
Number of Shares
For Against Abstain
- ------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Short Term Government Income Fund 58,062,538.270 342,897.510 1,251,907.200
Institutional Government Income Fund 28,772,366.570 40,573.000 31,344.850
Intermediate Term Government Income Fund 3,583,798.249 1,755.837 61,177.826
Adjustable Rate U.S. Government Securities Fund 814,571.970 4,316.009 12,503.232
Global Bond Fund 1,637,628.798 52.000 12,725.348
- ------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
COUNTRYWIDE INVESTMENTS
-------------------------
COUNRTYWIDE INVESTMENT TRUST
312 Walnut St., 21st Floor
Cincinnati, Ohio 45202-4094
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
Angelo R. Mozilo, Chairman
Robert H. Leshner, President
Donald L. Bogdon, M.D.
John R. Delfino
H. Jerome Lerner
Oscar P. Robertson
John F. Seymour, Jr.
Sebastiano Sterpa
INVESTMENT ADVISER
Countrywide Investments, Inc.
312 Walnut St., 21st Floor
Cincinnati, Ohio 45202-2094
TRANSFER AGENT
Countrywide Fund Services, Inc.
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 Countrywide Investment Trust.
<TABLE> <S> <C>
<ARTICLE> 6
<CIK> 0000066117
<NAME> COUNTRYWIDE INVESTMENT TRUST
<SERIES>
<NUMBER> 1
<NAME> SHORT TERM GOVERNMENT INCOME FUND
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> SEP-30-1997
<PERIOD-START> OCT-01-1996
<PERIOD-END> MAR-31-1997
<INVESTMENTS-AT-COST> 96,602,698
<INVESTMENTS-AT-VALUE> 96,602,698
<RECEIVABLES> 557,412
<ASSETS-OTHER> 7,028
<OTHER-ITEMS-ASSETS> 1,979
<TOTAL-ASSETS> 97,169,117
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 75,332
<TOTAL-LIABILITIES> 75,332
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 97,093,785
<SHARES-COMMON-STOCK> 97,093,785
<SHARES-COMMON-PRIOR> 91,436,514
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 0
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 0
<NET-ASSETS> 97,093,785
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 2,683,686
<OTHER-INCOME> 0
<EXPENSES-NET> 497,389
<NET-INVESTMENT-INCOME> 2,186,297
<REALIZED-GAINS-CURRENT> 0
<APPREC-INCREASE-CURRENT> 0
<NET-CHANGE-FROM-OPS> 2,186,297
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 2,186,297
<DISTRIBUTIONS-OF-GAINS> 2,970
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 178,740,208
<NUMBER-OF-SHARES-REDEEMED> 175,192,552
<SHARES-REINVESTED> 2,109,615
<NET-CHANGE-IN-ASSETS> 5,654,301
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 2,970
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 238,534
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 497,389
<AVERAGE-NET-ASSETS> 100,909,467
<PER-SHARE-NAV-BEGIN> 1.00
<PER-SHARE-NII> .022
<PER-SHARE-GAIN-APPREC> 0
<PER-SHARE-DIVIDEND> .022
<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> COUNTRYWIDE INVESTMENT TRUST
<SERIES>
<NUMBER> 31
<NAME> INTERMEDIATE TERM GOVERNMENT INCOME FUND CLASS A
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> SEP-30-1997
<PERIOD-START> OCT-01-1996
<PERIOD-END> MAR-31-1997
<INVESTMENTS-AT-COST> 55,609,314
<INVESTMENTS-AT-VALUE> 55,219,956
<RECEIVABLES> 898,923
<ASSETS-OTHER> 6,161
<OTHER-ITEMS-ASSETS> 4,276
<TOTAL-ASSETS> 56,129,316
<PAYABLE-FOR-SECURITIES> 1,500,000
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 108,257
<TOTAL-LIABILITIES> 1,608,257
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 57,662,530
<SHARES-COMMON-STOCK> 5,169,596
<SHARES-COMMON-PRIOR> 5,348,350
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> (2,752,113)
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> (389,358)
<NET-ASSETS> 53,752,734
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 1,908,414
<OTHER-INCOME> 0
<EXPENSES-NET> 281,906
<NET-INVESTMENT-INCOME> 1,626,508
<REALIZED-GAINS-CURRENT> 147,179
<APPREC-INCREASE-CURRENT> (600,062)
<NET-CHANGE-FROM-OPS> 1,173,625
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 1,605,979
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 452,732
<NUMBER-OF-SHARES-REDEEMED> 766,941
<SHARES-REINVESTED> 135,455
<NET-CHANGE-IN-ASSETS> (2,342,159)
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> (2,899,292)
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 139,615
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 288,452
<AVERAGE-NET-ASSETS> 55,950,626
<PER-SHARE-NAV-BEGIN> 10.49
<PER-SHARE-NII> .30
<PER-SHARE-GAIN-APPREC> (.09)
<PER-SHARE-DIVIDEND> .30
<PER-SHARE-DISTRIBUTIONS> 0
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 10.40
<EXPENSE-RATIO> .99
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<CIK> 0000066117
<NAME> COUNTRYWIDE INVESTMENT TRUST
<SERIES>
<NUMBER> 33
<NAME> INTERMEDIATE TERM GOVERNMENT INCOME FUND CLASS C
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> SEP-30-1997
<PERIOD-START> OCT-01-1996
<PERIOD-END> MAR-31-1997
<INVESTMENTS-AT-COST> 55,609,314
<INVESTMENTS-AT-VALUE> 55,219,956
<RECEIVABLES> 898,923
<ASSETS-OTHER> 6,161
<OTHER-ITEMS-ASSETS> 4,276
<TOTAL-ASSETS> 56,129,316
<PAYABLE-FOR-SECURITIES> 1,500,000
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 108,257
<TOTAL-LIABILITIES> 1,608,257
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 57,662,530
<SHARES-COMMON-STOCK> 73,895
<SHARES-COMMON-PRIOR> 73,518
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> (2,752,113)
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> (389,358)
<NET-ASSETS> 768,325
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 1,908,414
<OTHER-INCOME> 0
<EXPENSES-NET> 281,906
<NET-INVESTMENT-INCOME> 1,626,508
<REALIZED-GAINS-CURRENT> 147,179
<APPREC-INCREASE-CURRENT> (600,062)
<NET-CHANGE-FROM-OPS> 1,173,625
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 20,529
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 7,197
<NUMBER-OF-SHARES-REDEEMED> 8,697
<SHARES-REINVESTED> 1,877
<NET-CHANGE-IN-ASSETS> (2,725)
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> (2,899,292)
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 139,615
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 288,452
<AVERAGE-NET-ASSETS> 789,791
<PER-SHARE-NAV-BEGIN> 10.49
<PER-SHARE-NII> .28
<PER-SHARE-GAIN-APPREC> (.09)
<PER-SHARE-DIVIDEND> .28
<PER-SHARE-DISTRIBUTIONS> 0
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 10.40
<EXPENSE-RATIO> 1.53
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<CIK> 0000066117
<NAME> COUNTRYWIDE INVESTMENT TRUST
<SERIES>
<NUMBER> 4
<NAME> INSTITUTIONAL GOVERNMENT INCOME FUND
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> SEP-30-1997
<PERIOD-START> OCT-01-1996
<PERIOD-END> MAR-31-1997
<INVESTMENTS-AT-COST> 51,399,307
<INVESTMENTS-AT-VALUE> 51,399,307
<RECEIVABLES> 231,076
<ASSETS-OTHER> 3,475
<OTHER-ITEMS-ASSETS> 136
<TOTAL-ASSETS> 51,633,994
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 25,499
<TOTAL-LIABILITIES> 25,499
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 51,630,258
<SHARES-COMMON-STOCK> 51,630,258
<SHARES-COMMON-PRIOR> 39,406,966
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> (21,763)
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 0
<NET-ASSETS> 51,608,495
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 1,190,360
<OTHER-INCOME> 0
<EXPENSES-NET> 88,643
<NET-INVESTMENT-INCOME> 1,101,717
<REALIZED-GAINS-CURRENT> 3,139
<APPREC-INCREASE-CURRENT> 0
<NET-CHANGE-FROM-OPS> 1,104,856
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 1,101,717
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 105,070,731
<NUMBER-OF-SHARES-REDEEMED> 93,855,244
<SHARES-REINVESTED> 1,007,805
<NET-CHANGE-IN-ASSETS> 12,226,431
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> (24,902)
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 44,321
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 106,019
<AVERAGE-NET-ASSETS> 44,485,038
<PER-SHARE-NAV-BEGIN> 1.00
<PER-SHARE-NII> .025
<PER-SHARE-GAIN-APPREC> 0
<PER-SHARE-DIVIDEND> .025
<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> COUNTRYWIDE INVESTMENT TRUST
<SERIES>
<NUMBER> 61
<NAME> ADJUSTABLE RATE U.S. GOVERNMENT SECURITIES FUND CLASS A
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> SEP-30-1997
<PERIOD-START> OCT-01-1996
<PERIOD-END> MAR-31-1997
<INVESTMENTS-AT-COST> 17,338,393
<INVESTMENTS-AT-VALUE> 17,445,448
<RECEIVABLES> 587,381
<ASSETS-OTHER> 21,801
<OTHER-ITEMS-ASSETS> 3,765
<TOTAL-ASSETS> 18,058,395
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 68,230
<TOTAL-LIABILITIES> 68,230
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 19,134,237
<SHARES-COMMON-STOCK> 1,761,115
<SHARES-COMMON-PRIOR> 1,195,580
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> (1,251,127)
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 107,055
<NET-ASSETS> 17,268,888
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 438,844
<OTHER-INCOME> 0
<EXPENSES-NET> 51,889
<NET-INVESTMENT-INCOME> 386,955
<REALIZED-GAINS-CURRENT> (1,977)
<APPREC-INCREASE-CURRENT> (17,546)
<NET-CHANGE-FROM-OPS> 367,432
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 368,340
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 1,549,532
<NUMBER-OF-SHARES-REDEEMED> 1,018,694
<SHARES-REINVESTED> 34,697
<NET-CHANGE-IN-ASSETS> 5,537,306
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> (1,249,150)
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 33,309
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 120,600
<AVERAGE-NET-ASSETS> 12,700,157
<PER-SHARE-NAV-BEGIN> 9.81
<PER-SHARE-NII> .29
<PER-SHARE-GAIN-APPREC> 0
<PER-SHARE-DIVIDEND> .29
<PER-SHARE-DISTRIBUTIONS> 0
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 9.81
<EXPENSE-RATIO> .75
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<CIK> 0000066117
<NAME> COUNTRYWIDE INVESTMENT TRUST
<SERIES>
<NUMBER> 63
<NAME> ADJUSTABLE RATE U.S. GOVERNMENT SECURITIES FUND CLASS C
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> SEP-30-1997
<PERIOD-START> OCT-01-1996
<PERIOD-END> MAR-31-1997
<INVESTMENTS-AT-COST> 17,338,393
<INVESTMENTS-AT-VALUE> 17,445,448
<RECEIVABLES> 587,381
<ASSETS-OTHER> 21,801
<OTHER-ITEMS-ASSETS> 3,765
<TOTAL-ASSETS> 18,058,395
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 68,230
<TOTAL-LIABILITIES> 68,230
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 19,134,237
<SHARES-COMMON-STOCK> 73,599
<SHARES-COMMON-PRIOR> 64,117
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> (1,251,127)
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 107,055
<NET-ASSETS> 721,277
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 438,844
<OTHER-INCOME> 0
<EXPENSES-NET> 51,889
<NET-INVESTMENT-INCOME> 386,955
<REALIZED-GAINS-CURRENT> (1,977)
<APPREC-INCREASE-CURRENT> (17,546)
<NET-CHANGE-FROM-OPS> 367,432
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 18,615
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 47,693
<NUMBER-OF-SHARES-REDEEMED> 39,694
<SHARES-REINVESTED> 1,483
<NET-CHANGE-IN-ASSETS> 92,414
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> (1,249,150)
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
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