<PAGE> PAGE 1
000 A000000 06/30/97
000 C000000 0000710978
000 D000000 Y
000 E000000 NF
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008 D02AA01 VA
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008 D04AA01 3108
008 A00AA02 MADISON INVESTMENT ADVISORS, INC.
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008 D02AA02 WI
<PAGE> PAGE 2
008 D03AA02 53705
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<PAGE> PAGE 3
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<PAGE> PAGE 4
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<PAGE> PAGE 5
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<PAGE> PAGE 6
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<PAGE> PAGE 7
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<PAGE> PAGE 8
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<PAGE> PAGE 9
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<PAGE> PAGE 10
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<PAGE> PAGE 11
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<PAGE> PAGE 12
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<PAGE> PAGE 13
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<PAGE> PAGE 14
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<PAGE> PAGE 15
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SIGNATURE RICHARD MASON
TITLE GENERAL COUNSEL
Exhibit 77C to NSAR dated June 30, 1997
Mosaic Income Trust
Shareholder Vote Information. On May 28, 1997, an Annual Meeting
of Shareholders of Madison Bond Fund, Inc. was held at 4:00 p.m. in
Madison, Wisconsin. The shareholders were requested to vote on the
merger of their fund with Mosaic Income Trust Mosaic Bond Fund in
accordance with the Prospectus/Proxy Statement dated May 1, 1997. Of
the 153,476.535 outstanding shares of Madison Bond Fund, Inc.,
86,388.271 voted in favor of the merger (56.3%), 6.3% in excess of the
amount required to approve the merger.
Exhibit 77M to NSAR dated June 30, 1997
Mosaic Income Trust
(a) Matters regarding the merger of:
Madison Bond Fund, Inc., 811-5952
into Mosaic Bond Fund, a series of Mosaic Income Trust
(b) On April 1, 1997, the Directors of Mosaic Bond Fund, Inc., 1940
Act Registrant File Number 811-5952, approved the execution of an
Agreement and Plan of Merger with Mosaic Income Trust (then known as GIT
Income Trust) whereby Mosaic Income Trust's newly created Mosiac Bond
Fund would assume all of the outstanding assets and liabilities of
Madison Bond Fund, Inc. The Trustees of Mosaic Income Trust and the
Directors of Madison Bond Fund, Inc. resolved that the merger be
approved, that such merger was in the best interests of shareholders of
the acquiring and selling fund and that no shareholder's interests would
be diluted as a result of the merger.
On or about May 1, 1997, a Mosaic Income Trust Prospectus/Proxy
Statement (Form N-14) was delivered to each Madison Bond Fund, Inc.
shareholder so that the merger could be voted and approved by
shareholders in accordance with Wisconsin law. On May 28, 1997, the
Annual Meeting of Shareholders of Madison Bond Fund, Inc. was held at
4:00 p.m. in Madison, Wisconsin. Its shareholders voted to approve the
merger of their fund with Mosaic Income Trust Mosaic Bond Fund in
accordance with the Prospectus/Proxy Statement dated May 1, 1997. Of
the 153,476.535 outstanding shares of Madison Bond Fund, Inc.,
86,388.271 voted in favor of the merger (56.3%), 6.3% in excess of the
amount required to approve the merger.
The merger was accomplished on June 13, 1997. The Mosaic Bond Fund
series of Mosaic Income Trust is the legal survivor of the merger.
For accounting purposes, in light of the fact that the Mosaic Bond Fund
series of Mosaic Income Trust was created solely for the purpose of
acquiring the assets and liabilities of Madison Bond Fund, Inc. in order
to reorganize Madison Bond Fund, Inc. as a series of Mosaic Income Trust
and a other factors set forth in detail in the Prospectus and Proxy
Statement dated May 1, 1997 filed by Mosaic Income Trust, the Mosaic
Bond Fund series of Mosaic Income Trust assumed the accounting history
of Madison Bond Fund, Inc. and its financial data for the period prior
to the merger are set forth in this Form NSAR where appropriate.
In light of the merger which was completed on June 13, 1997, Madison
Bond Fund, Inc., has ceased to be an investment company.
Amendment to Investment Advisory Agreement dated July 31, 1996
between Bankers Finance Advisors, LLC and Mosaic (formerly GIT)
Income Trust
Effective May 12, 1997, the first paragraph of Section 6 of the
Agreement shall be and hereby is revised to reflect the addition
of the Mosaic Bond Fund pursuant to shareholder vote on May 29,
1997 to read as follows:
"6. Compensation to the Advisor. For its services
hereunder, the Trust shall pay to the advisor a management fee
equal to five-eighths (5/8) percent per annum of the average
daily net assets of each of the portfolios of the Trust other
than the Mosaic Bond Fund. As of this date, such management fee
shall be payable hereunder with respect to the portfolios
comprising the following series of shares: The Government Fund
Shares and the High Yield Fund Shares. With respect to the
Mosaic Bond Fund series of shares, the Trust shall pay to the
advisor a management fee equal to one-half (1/2) percent per
annum of the average daily net assets of such portfolio. Such
fees shall be payable monthly as of the last day of the month and
shall be the sum of the daily fees calculated as one-three
hundred sixty-fifth (1/365), except in leap years one-three
hundred sixty-sixth (1/366), of the annual fee based upon each
portfolio's assets calculated for the day."
<TABLE> <S> <C>
<ARTICLE> 6
<LEGEND>
This schedule contains summary financial information derived from the
registrant's current prospectus, Form NSAR and financial statements and is
qualified in its entirety by reference to such source documents.
</LEGEND>
<CIK> 0000710978
<NAME> MOSAIC INCOME TRUST
<SERIES>
<NUMBER> 1
<NAME> HIGH YIELD FUND
<MULTIPLIER> 1000
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-30-1997
<PERIOD-START> APR-01-1997
<PERIOD-END> JUN-30-1997
<INVESTMENTS-AT-COST> 6472
<INVESTMENTS-AT-VALUE> 6412
<RECEIVABLES> 656
<ASSETS-OTHER> 0
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 7069
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 78
<TOTAL-LIABILITIES> 78
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 9299
<SHARES-COMMON-STOCK> 977
<SHARES-COMMON-PRIOR> 892
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> (2,248)
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> (59)
<NET-ASSETS> 6,991
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 152
<OTHER-INCOME> 0
<EXPENSES-NET> 20
<NET-INVESTMENT-INCOME> 132
<REALIZED-GAINS-CURRENT> 80
<APPREC-INCREASE-CURRENT> 62
<NET-CHANGE-FROM-OPS> 142
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 132
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 918
<NUMBER-OF-SHARES-REDEEMED> 432
<SHARES-REINVESTED> 110
<NET-CHANGE-IN-ASSETS> 595
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> (2,563)
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 10
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 20
<AVERAGE-NET-ASSETS> 6,592
<PER-SHARE-NAV-BEGIN> 7.009
<PER-SHARE-NII> 0.140
<PER-SHARE-GAIN-APPREC> 0.149
<PER-SHARE-DIVIDEND> 0.140
<PER-SHARE-DISTRIBUTIONS> 0
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 7.158
<EXPENSE-RATIO> 1.220
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<LEGEND>
This schedule contains summary financial information extracted from the
registrant's prospectus, Form NSAR and current financial statements and is
qualified in its entirety by reference to such source documents.
</LEGEND>
<CIK> 0000710978
<NAME> MOSAIC INCOME TRUST
<SERIES>
<NUMBER> 2
<NAME> GOVERNMENT FUND
<MULTIPLIER> 1000
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1997
<PERIOD-START> APR-01-1997
<PERIOD-END> JUN-30-1997
<INVESTMENTS-AT-COST> 5,678
<INVESTMENTS-AT-VALUE> 5,616
<RECEIVABLES> 100
<ASSETS-OTHER> 0
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 5,716
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 2
<TOTAL-LIABILITIES> 2
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 6,171
<SHARES-COMMON-STOCK> 594
<SHARES-COMMON-PRIOR> 614
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> (394)
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> (62)
<NET-ASSETS> 5,715
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 94
<OTHER-INCOME> 0
<EXPENSES-NET> 17
<NET-INVESTMENT-INCOME> 77
<REALIZED-GAINS-CURRENT> (36)
<APPREC-INCREASE-CURRENT> 146
<NET-CHANGE-FROM-OPS> 109
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 77
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 283
<NUMBER-OF-SHARES-REDEEMED> 541
<SHARES-REINVESTED> 71
<NET-CHANGE-IN-ASSETS> (187)
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> (313)
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 9
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 17
<AVERAGE-NET-ASSETS> 5,777
<PER-SHARE-NAV-BEGIN> 9.434
<PER-SHARE-NII> 0.128
<PER-SHARE-GAIN-APPREC> 0.182
<PER-SHARE-DIVIDEND> 0.128
<PER-SHARE-DISTRIBUTIONS> 0
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 9.616
<EXPENSE-RATIO> 1.150
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<LEGEND>
This financial data schedule contains summary financial information extracted
from the financial statements of Mosaic Bond Fund, a series of the registrant,
successor to Madison Bond Fund, Inc., their forms NSAR and prospectuses and is
qualified in its entirety by reference to such source documents.
</LEGEND>
<CIK> 0000710978
<NAME> MOSAIC INCOME TRUST
<SERIES>
<NUMBER> 3
<NAME> MOSAIC BOND FUND
<MULTIPLIER> 1000
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1997
<PERIOD-END> JUN-30-1997
<INVESTMENTS-AT-COST> 2,517
<INVESTMENTS-AT-VALUE> 2,496
<RECEIVABLES> 50
<ASSETS-OTHER> 0
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 2,546
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 131
<TOTAL-LIABILITIES> 131
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 2,730
<SHARES-COMMON-STOCK> 118
<SHARES-COMMON-PRIOR> 198
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> (293)
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> (20)
<NET-ASSETS> 2,416
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 101
<OTHER-INCOME> 0
<EXPENSES-NET> 30
<NET-INVESTMENT-INCOME> 71
<REALIZED-GAINS-CURRENT> 5
<APPREC-INCREASE-CURRENT> (29)
<NET-CHANGE-FROM-OPS> (23)
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 72
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 33
<NUMBER-OF-SHARES-REDEEMED> 1,736
<SHARES-REINVESTED> 56
<NET-CHANGE-IN-ASSETS> (1,647)
<ACCUMULATED-NII-PRIOR> 1
<ACCUMULATED-GAINS-PRIOR> 0
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 9
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 30
<AVERAGE-NET-ASSETS> 3,669
<PER-SHARE-NAV-BEGIN> 20.630
<PER-SHARE-NII> 0.601
<PER-SHARE-GAIN-APPREC> (0.241)
<PER-SHARE-DIVIDEND> 0.531
<PER-SHARE-DISTRIBUTIONS> 0
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 20.459
<EXPENSE-RATIO> 1.610
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
