TOTAL RETURN
CAPITAL APPRECIATION
INCOME
ANNUAL
REPORT
MARCH 31, 1995
Treasury Total
RETURN FUND
Utility
FUND
Equity
FUND
U.S. Government
SECURITIES FUND
<PAGE>
Midwest Group of Funds(R)
MIDWEST STRATEGIC TRUST
312 Walnut St., 21st Floor
Cincinnati, Ohio 45202-3874
Nationwide (Toll Free) 800-543-8721
Cincinnati 629-2000
Rate Line 579-0999
Shareholder Services
Nationwide (Toll Free) 800-543-0407
Cincinnati 629-2050
BOARD OF TRUSTEES
Robert Betagole
Dale P. Brown
Margaret S. Hansson
H. Jerome Lerner
Robert H. Leshner
Richard A. Lipsey
Donald J. Rahilly
Fred A. Rappoport
OFFICERS
Robert H. Leshner, President
John F. Splain, Secretary
Mark J. Seger, Treasurer
UNDERWRITER
MIDWEST GROUP FINANCIAL SERVICES, INC.
312 Walnut St., 21st Floor
Cincinnati, Ohio 45202-3874
TRANSFER AGENT
MGF SERVICE CORP.
P.O. Box 5354
Cincinnati, Ohio 45201-5354
This report is authorized for distribution only when it is accompanied
or preceded by a current prospectus of Midwest Strategic Trust.
5/95
<PAGE>
LETTER FROM THE PRESIDENT
Dear Fellow Shareholders:
We are pleased to enclose for your review the audited annual report for the
Funds in Midwest Strategic Trust for the year ended March 31, 1995.
After the volatile stock and bond markets of 1994, the strong performance of
both markets during the first quarter of 1995 was a welcome change. While
current economic data continues to be mixed, most reports indicate moderate
economic strength sufficient enough to keep the Federal Reserve from raising
interest rates any time in the near future. The slower economy resulted in
declining interest rates and allowed the U.S. Government markets to post
positive gains through quarter-end.
In the equity markets, amid uncertainty in the economic outlook, investors
favored steady growth issues -- stocks that tend to produce increases in
earnings irrespective of the direction of the economy. Strong first quarter 1995
earnings reports fueled the run in the market as many companies in the S&P 500
reported higher than anticipated earnings. The strong performance of utilities
this year can be attributed to lower interest rates, improved earnings, lower
payout ratios and an improved understanding of the competition issue by analysts
and investors.
While investors may be worried about the economy, interest rates, the stock
market and taxes, they are also showing a basic interest in fundamental
investing. Midwest Group's conservative approach, seeking to maximize returns
while minimizing risk, has served investors well. Our concentration of high
quality equity issues in the Equity Fund and Utility Fund, and U.S. Government
obligations in the Treasury Total Return Fund and U.S. Government Securities
Fund, plus the flexibility afforded by each Fund's cash position, should appeal
to the risk-adverse investor.
During the first quarter of 1995, Midwest Group introduced the Midwest Global
Bond Fund. It seeks high total return through both income and capital
appreciation. With more than 60% of the world's debt securities issued outside
the United States, the global bond markets offer a wide range of investment
opportunities.
For more than ten years, Rogge Global Partners of London, England, the Global
Bond Fund's investment manager, has provided global investment management to
large global portfolios of $50 million or more. Midwest's Global Bond Fund
allows investors to participate in the global bond markets with this experienced
investment manager at a much lower account size than would otherwise be
available.
It is an excellent opportunity to diversify globally.
While we cannot change the nature of the markets, we can make informed
investment decisions based on a long-term perspective and strategy. We will
continue to follow an extremely conservative equity and fixed-income policy.
Sincerely,
Robert H. Leshner
President
<PAGE>
TREASURY TOTAL RETURN FUND
MANAGEMENT DISCUSSION AND ANALYSIS
The Treasury Total Return Fund seeks the highest level of total return over the
long term, consistent with the protection of capital, by investing primarily in
direct obligations of the United States Treasury. High current income is a
secondary objective. For the fiscal year ended March 31, 1995, the Fund's total
return for Class A shares (excluding the impact of the maximum 4% front-end
sales load) was -1.75%, as compared to 4.25% for the Merrill Lynch Treasuries
(All Maturities) Index.
Throughout 1994, the United States experienced a rare blend of low inflation and
rapid economic growth. In response to this growth, the Federal Reserve Board
raised the Federal Funds rate five times in 1994 with the intention of keeping
inflationary pressures in check. Nevertheless, investors still could not
overcome their inflationary fears. As a result, long-term interest rates rose
sharply and more severely than did short-term rates which more closely
paralleled the actions of the Federal Reserve. Late in 1994 and into the first
quarter of 1995, however, investors' confidence about economic conditions
improved based on indications of a slowdown in the economy. This prompted a
decline in long-term interest rates.
Early in 1995, management moved the investment portfolio of the Fund entirely
into short-term Treasury issues and cash equivalents. With interest rates on the
rise during most of 1994, yields on short-term Treasury issues began to offer
greater appeal as conservative investment alternatives. Management concluded
that the potential price appreciation on longer-term securities if interest
rates relaxed did not warrant the downside risk. While this strategy did not
allow the Fund to fully participate in the bond market rally during the first
quarter of 1995, it has positioned the Fund for more consistent returns even in
fluctuating market conditions.
The Fund will maintain its cautious position until a definite lasting trend
toward lower rates is foreseen. Management remains guarded as to whether the
current slowdown in the economy will continue and alert to the possibility of
inflation moving slightly higher. Given this outlook, we anticipate a rise in
interest rates by the end of 1995. Our concentration in short-term Treasury
issues will take advantage of higher available yields and allow us to be
responsive to changing economic conditions.
<PAGE>
UTILITY FUND
MANAGEMENT DISCUSSION AND ANALYSIS
The Utility Fund seeks a high level of current income by investing primarily in
securities of public utilities. Capital appreciation is a secondary objective.
The Fund's total returns for the fiscal year ended March 31, 1995 (excluding the
impact of the maximum 4% front-end sales load on Class A shares) were 3.68% and
3.00% for Class A shares and Class C shares, respectively.
The fiscal year started out on a lackluster note for the utility market as
evidenced by the .4% return for the Standard & Poor's (S&P) Utility Index during
the nine month period from April 1, 1994 through December 31, 1994. This flat
performance was in response to the Federal Reserve Board's continued tightening
of interest rates. From January 1, 1995 through March 31, 1995, however, an
increase of 6.9% occurred in the utility market as interest rates began to move
lower based on indications of a slowing economy. For the fiscal year ended March
31, 1995, the S&P Utility Index gained 7.3%.
As indicated above, the Fund's total return for Class A shares was 3.68% as
compared to 7.30% for the S&P Utility Index during the fiscal year. This placed
the Fund twenty-first out of 74 utility funds as ranked by Lipper Analytical
Services. The Fund's good performance relative to its peers can be attributed to
the 50% cash position held by the Fund throughout most of 1994 during a period
of rising interest rates. By the fourth quarter of 1994, management believed
that buying opportunities existed as utility stock prices were down
significantly and, more importantly, earnings and dividend growth were showing
signs of improvement. As a result, the Fund starting purchasing utility issues
in both the electric and telecommunications sectors. At March 31, 1995, the Fund
was 81% invested in utility issues with the remainder invested in short-term
Treasury issues and cash equivalents.
Management continues to believe that the prospects are good for the utility
market. The period of low inflation and moderate growth that the economy is
currently experiencing should benefit utility stocks. The Fund will further
invest its cash position as opportunities are identified.
<PAGE>
EQUITY FUND
MANAGEMENT DISCUSSION AND ANALYSIS
The Equity Fund seeks long-term capital appreciation by investing primarily in
common stocks of companies that offer growth potential. The Fund's total returns
for the fiscal year ended March 31, 1995 (excluding the impact of the maximum 4%
front-end sales load on Class A shares) were 8.07% and 7.32% for Class A shares
and Class C shares, respectively.
While calendar year 1994 will not be remembered as a very positive one for the
equity market, most of the poor performance actually came during the first
quarter of the year. Strong economic growth during the second half of 1994,
combined with strong corporate earnings, enabled the Standard & Poor's (S&P) 500
Index to post a positive return of 5.3% for the nine months ended December 31,
1994. Continued reports of strong corporate earnings, along with a decline in
interest rates on signs of controlled economic growth, further helped the S&P
500 Index to post a first quarter 1995 increase of 9.7%. This represented its
best quarterly performance since the first quarter of 1991. For the fiscal year
ended March 31, 1995, the S&P 500 Index gained 15.56%.
The equity market has risen sharply in anticipation of a soft landing by the
economy following the Federal Reserve Board's 1994 interest rate increases. Much
of the rise has centered around growth stocks of established companies with
large market capitalization. Throughout the fiscal year, the Fund increased its
exposure to such large-cap growth stocks and reduced its orientation toward
mid-cap growth stocks whose returns in 1994 lagged those of the S&P 500 Index.
In addition, the Fund's cash position during most of 1994 exceeded 25% as
management opted for caution given the volatile equity markets.
For the remainder of 1995, corporate earnings will have difficulty matching the
strong first quarter performance which could put downward pressure on stock
prices. In addition, the weak U.S. dollar internationally is a cause of concern
given its potential impact on higher interest rates and inflation. In response
to such concerns, management has decided to maintain a cash position of
approximately 20% in the Fund. As our outlook improves, more cash will be
committed to common stocks of companies with prospects for long-term growth that
are attractively priced.
<PAGE>
U.S. GOVERNMENT SECURITIES FUND
MANAGEMENT DISCUSSION AND ANALYSIS
The U.S. Government Securities Fund seeks high current income, consistent with
the protection of capital, by investing primarily in mortgage-backed securities
which are issued or guaranteed as to principal and interest by the U.S.
Government, its agencies or instrumentalities. For the fiscal year ended March
31, 1995, the Fund's total return (excluding the impact of the maximum 2%
front-end sales load) was .06%, as compared to 6.01% for the Lehman Brothers
Mortgage-Backed Securities Index.
A rapidly improving economy during the last three quarters of 1994 prompted a
string of monetary policy changes by the Federal Reserve Board. During 1994, the
widely followed discount and Federal Funds rates were increased four and five
times, respectively, as the Federal Reserve attempted to slow the pace of
economic growth and prevent the inflation rate from rising. This active
intervention by the Federal Reserve caused interest rates to rise sharply and
rapidly and raised speculation concerning the ultimate length and magnitude of
rate hikes needed to control economic growth. With the economy beginning to
moderate in early 1995, the fixed income markets received some much needed
relief as speculation shifted to whether the Federal Reserve would end this
round of tightening and possibly even ease rates.
The Fund initiated several changes to its investment strategy in response to the
onset of higher rates and the sharp decline in bond prices. All collateralized
mortgage obligations (CMOs) were sold with the proceeds moved into less volatile
pass-through mortgage-backed securities. This strategy, undertaken during the
third quarter of 1994, worked well as the CMO issues came under heavy selling
pressure later in the year. However, the interest rate increases already had a
substantial negative impact on the Fund's performance as their frequency and
magnitude were not fully anticipated and, as a result, the Fund's average
maturity was not initially adjusted.
Within the mortgage sector of the market, prepayments shrank considerably during
the course of the year. After falling dramatically during the first three
quarters of 1994, prepayments stabilized and have remained in a relatively tight
range into 1995. With mortgage holders having less incentive to refinance or
payoff existing loans in a rising rate environment, the average life of
mortgage-backed securities was extended and their valuations reduced.
A core position of mortgage-backed securities and U.S. Government and agency
bonds is now maintained by the Fund to allow for more steady returns. In
addition, management continually analyzes the remainder of the portfolio and
selects bonds with coupon rates and weighted average lives suitable for
anticipated market conditions. Management is confident that this more proactive
style has contributed to the improved performance of the Fund over the last six
months in relation to its peers and should provide shareholders with more stable
returns in the future.
<PAGE>
<TABLE>
<CAPTION>
STATEMENTS OF ASSETS AND LIABILITIES
March 31, 1995
TREASURY
TOTAL
RETURN UTILITY EQUITY
FUND FUND FUND
--------------- --------------- ---------------
<S> <C> <C> <C>
ASSETS
Investments in securities:
At acquisition cost.................................... $ 24,531,613 $ 40,572,723 $ 4,586,511
=============== =============== ===============
At amortized cost...................................... $ 24,824,306 $ 40,549,992 $ 4,586,511
=============== =============== ===============
At value (Note 1)...................................... $ 24,841,049 $ 40,314,275 $ 4,848,113
Investments in repurchase agreements (Note 1)............. 1,586,000 3,373,000 1,196,000
Cash ..................................................... 597 890 335
Receivable for securities sold............................ -- -- 259,127
Receivable for Fund shares sold .......................... 1,148 79,064 1,281
Dividends and interest receivable......................... 37,550 265,230 7,014
Other assets ............................................. 2,973 4,265 859
--------------- --------------- ---------------
TOTAL ASSETS........................................... 26,469,317 44,036,724 6,312,729
--------------- --------------- ---------------
LIABILITIES
Payable for Fund shares redeemed.......................... 468,246 297,337 4,713
Dividends payable......................................... 5,578 73,619 1,331
Payable to affiliates (Note 3) ........................... 11,792 40,019 7,623
Other accrued expenses and liabilities ................... 9,943 13,975 3,893
--------------- --------------- ---------------
TOTAL LIABILITIES...................................... 495,559 424,950 17,560
--------------- --------------- ---------------
NET ASSETS .............................................. $ 25,973,758 $ 43,611,774 $ 6,295,169
--------------- --------------- ---------------
Net assets consist of:
Capital shares ........................................... $ 28,047,962 $ 44,216,465 $ 6,592,218
Accumulated net realized losses from security transactions (2,090,947) (368,974) (558,651)
Net unrealized appreciation (depreciation) on investments 16,743 (235,717) 261,602
--------------- --------------- ---------------
Net assets ............................................... $ 25,973,758 $ 43,611,774 $ 6,295,169
=============== =============== ===============
PRICING OF CLASS A SHARES
Net assets applicable to Class A shares .................. $ 25,973,758 $ 40,012,482 $ 4,299,860
=============== =============== ===============
Shares of beneficial interest outstanding (unlimited number
of shares authorized, no par value) (Note 4)........... 3,105,434 3,821,010 436,763
=============== =============== ===============
Net asset value and redemption price per share (Note 1)... $ 8.36 $ 10.47 $ 9.84
=============== =============== ===============
Maximum offering price per share (Note 1)................. $ 8.71 $ 10.91 $ 10.25
=============== =============== ===============
PRICING OF CLASS C SHARES
Net assets applicable to Class C shares .................. $ -- $ 3,599,292 $ 1,995,309
=============== =============== ===============
Shares of beneficial interest outstanding (unlimited number
of shares authorized, no par value) (Note 4)........... -- 344,067 202,399
=============== =============== ===============
Net asset value and redemption price per share (Note 1)... $ -- $ 10.46 $ 9.86
=============== =============== ===============
Maximum offering price per share (Note 1)................. $ -- $ 10.46 $ 9.86
=============== =============== ===============
<FN>
See accompanying notes to financial statements.
</FN>
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
STATEMENT OF ASSETS AND LIABILITIES
March 31, 1995
U.S.
GOVERNMENT
SECURITIES
FUND
---------------
<S> <C>
ASSETS
Investments in securities:
At acquisition cost...................................................................... $ 23,371,151
===============
At amortized cost........................................................................ $ 23,393,246
===============
At value (Note 1)........................................................................ $ 23,799,490
Investments in repurchase agreements (Note 1)............................................... 2,395,000
Cash ....................................................................................... 214
Receivable for Fund shares sold............................................................. 1,720
Interest receivable......................................................................... 321,318
Other assets................................................................................ 3,615
---------------
TOTAL ASSETS............................................................................. 26,521,357
---------------
LIABILITIES
Payable for Fund shares redeemed............................................................ 270,655
Dividends payable........................................................................... 35,773
Payable to affiliates (Note 3).............................................................. 27,558
Other accrued expenses and liabilities...................................................... 12,896
---------------
TOTAL LIABILITIES........................................................................ 346,882
---------------
NET ASSETS ................................................................................. $ 26,174,475
===============
Net assets consist of:
Capital shares.............................................................................. $ 30,978,196
Accumulated net realized losses from security transactions................................... (5,209,965)
Net unrealized appreciation on investments.................................................. 406,244
---------------
Net assets.................................................................................. $ 26,174,475
===============
Shares of beneficial interest outstanding (unlimited number
of shares authorized, no par value) (Note 4)............................................. 2,837,768
---------------
Net asset value and redemption price per share (Note 1)..................................... $ 9.22
===============
Maximum offering price per share (Note 1)................................................... $ 9.41
===============
<FN>
See accompanying notes to financial statements.
</FN>
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
STATEMENTS OF OPERATIONS
For the Year Ended March 31, 1995
TREASURY
TOTAL
RETURN UTILITY EQUITY
FUND FUND FUND
--------------- --------------- ---------------
<S> <C> <C> <C>
INVESTMENT INCOME
Interest .............................................. $ 1,756,899 $ 819,257 $ 88,668
Dividends ............................................. -- 1,491,702 130,316
--------------- --------------- ---------------
TOTAL INVESTMENT INCOME ............................. 1,756,899 2,310,959 218,984
--------------- --------------- ---------------
EXPENSES
Investment advisory fees (Note 3) ..................... 208,921 325,780 59,758
Accounting services fees (Note 3) ..................... 40,500 54,000 54,000
Transfer agent fees, Class A (Note 3).................. 50,627 45,014 12,000
Transfer agent fees, Class C (Note 3).................. 2,000 12,000 12,000
Distribution expenses, Class A (Note 3) ............... 3,817 37,148 561
Distribution expenses, Class C (Note 3) ............... -- 9,766 15,457
Postage and supplies................................... 26,905 19,496 4,142
Professional fees ..................................... 13,179 17,650 8,651
Registration fees, Common ............................. 10,550 6,714 7,358
Registration fees, Class A ............................ 1,350 3,720 1,630
Registration fees, Class C ............................ 345 2,980 2,532
Custodian fees ........................................ 6,469 8,333 7,096
Trustees' fees and expenses ........................... 4,439 4,439 4,439
Insurance expense ..................................... 4,485 5,966 1,042
Reports to shareholders ............................... 4,661 5,811 1,033
Other expenses ........................................ 2,772 3,491 723
--------------- --------------- ---------------
TOTAL EXPENSES ...................................... 381,020 562,308 192,422
Fees waived by the Adviser (Note 3).................... (32,713) -- (46,905)
Class C expenses reimbursed by the Adviser (Note 3).... -- -- (14,964)
--------------- --------------- ---------------
NET EXPENSES ........................................ 348,307 562,308 130,553
--------------- --------------- ---------------
NET INVESTMENT INCOME .................................... 1,408,592 1,748,651 88,431
--------------- --------------- ---------------
REALIZED AND UNREALIZED GAINS (LOSSES) ON INVESTMENTS
Net realized losses from security transactions ........ (1,660,245) (330,519) (558,651)
Net change in unrealized appreciation/
depreciation on investments ......................... (348,543) 91,379 983,919
--------------- --------------- ---------------
NET REALIZED AND UNREALIZED GAINS
(LOSSES) ON INVESTMENTS ............................... (2,008,788) (239,140) 425,268
--------------- --------------- ---------------
NET INCREASE (DECREASE) IN NET ASSETS
FROM OPERATIONS ...................................... $ (600,196) $ 1,509,511 $ 513,699
=============== =============== ===============
<FN>
See accompanying notes to financial statements.
</FN>
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
STATEMENT OF OPERATIONS
For the Year Ended March 31, 1995
U.S.
GOVERNMENT
SECURITIES
FUND
---------------
<S> <C>
INVESTMENT INCOME
Interest................................................................................. $ 2,600,539
---------------
EXPENSES
Investment advisory fees (Note 3)........................................................ 261,660
Accounting services fees (Note 3)........................................................ 42,000
Transfer agent fees (Note 3)............................................................. 28,889
Distribution expenses (Note 3)........................................................... 17,271
Postage and supplies..................................................................... 14,756
Professional fees........................................................................ 14,179
Custodian fees........................................................................... 12,013
Registration fees........................................................................ 10,892
Insurance expense........................................................................ 4,790
Trustees' fees and expenses.............................................................. 4,439
Reports to shareholders.................................................................. 2,823
Other expenses........................................................................... 4,919
---------------
TOTAL EXPENSES......................................................................... 418,631
---------------
NET INVESTMENT INCOME ...................................................................... 2,181,908
---------------
REALIZED AND UNREALIZED GAINS (LOSSES) ON INVESTMENTS
Net realized losses from security transactions........................................... (5,097,610)
Net change in unrealized appreciation/depreciation on investments........................ 2,526,800
---------------
NET REALIZED AND UNREALIZED LOSSES ON INVESTMENTS .......................................... (2,570,810)
---------------
NET DECREASE IN NET ASSETS FROM OPERATIONS ................................................. $ (388,902)
===============
<FN>
See accompanying notes to financial statements.
</FN>
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
STATEMENTS OF CHANGES IN NET ASSETS
For the Periods Ended March 31, 1995 and 1994
TREASURY TOTAL UTILITY EQUITY
RETURN FUND FUND FUND
----------------------------------------------------------------------------------------
Year Ended Year Ended Year Ended Year Ended Year Ended Period Ended
March 31, March 31, March 31, March 31, March 31, March 31,
1995 1994 1995 1994 1995 1994(A)
----------- ----------- ----------- ----------- ----------- -----------
<S> <C> <C> <C> <C> <C> <C>
FROM OPERATIONS:
Net investment income................ $ 1,408,592 $ 1,508,886 $ 1,748,651 $ 1,492,108 $ 88,431 $ 42,252
Net realized gains (losses)
from security transactions.......... (1,660,245) 919,655 (330,519) 881,532 (558,651) 401,626
Net change in unrealized appreciation/
depreciation on investments......... (348,543) (2,172,229) 91,379 (3,297,449) 983,919 (722,317)
----------- ----------- ----------- ----------- ----------- -----------
Net increase (decrease) in
net assets from operations........... (600,196) 256,312 1,509,511 (923,809) 513,699 (278,439)
----------- ----------- ----------- ----------- ----------- -----------
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income, Class A (1,408,066) (1,508,296) (1,651,628) (1,465,351) (64,588) (23,218)
From net investment income, Class C (526) (673) (97,023) (26,757) (25,618) (17,259)
From net realized gains from security
transactions, Class A.............. -- (1,349,109) -- (888,957) -- (145,904)
From net realized gains from security
transactions, Class C.............. -- (1,248) -- (31,030) -- (255,722)
----------- ----------- ----------- ----------- ----------- -----------
Decrease in net assets from distributions
to shareholders..................... (1,408,592) (2,859,326) (1,748,651) (2,412,095) (90,206) (442,103)
----------- ----------- ----------- ----------- ----------- -----------
FROM FUND SHARE TRANSACTIONS (Note 4):
CLASS A
Proceeds from shares sold........... 3,943,008 2,723,748 8,624,377 11,948,165 1,844,954 4,583,940
Net asset value of shares issued in
reinvestment of distributions
to shareholders .................. 1,233,914 2,494,394 1,451,000 2,129,458 61,635 162,564
Payments for shares redeemed........ (9,385,378) (13,859,178) (10,224,952) (12,579,196) (1,218,368) (1,133,107)
----------- ----------- ----------- ----------- ----------- -----------
Increase (decrease) in net assets from
Class A share transactions.......... (4,208,456) (8,641,036) (149,575) 1,498,427 688,221 3,613,397
----------- ----------- ----------- ----------- ----------- -----------
CLASS C
Proceeds from shares sold........... 12,267 88,187 2,807,607 2,287,703 341,886 10,717,195
Net asset value of shares issued in
reinvestment of distributions
to shareholders .................. 443 1,823 91,538 56,979 24,412 247,662
Payments for shares redeemed........ (94,938) (127) (1,012,792) (444,238) (4,386,211) (4,654,344)
----------- ----------- ----------- ----------- ----------- -----------
Increase (decrease) in net assets from
Class C share transactions.......... (82,228) 89,883 1,886,353 1,900,444 (4,019,913) 6,310,513
----------- ----------- ----------- ----------- ----------- -----------
Net increase (decrease) from fund
share transactions.................. (4,290,684) (8,551,153) 1,736,778 3,398,871 (3,331,692) 9,923,910
----------- ----------- ----------- ----------- ----------- -----------
TOTAL INCREASE (DECREASE)
IN NET ASSETS....................... (6,299,472) (11,154,167) 1,497,638 62,967 (2,908,199) 9,203,368
NET ASSETS:
Beginning of period................. 32,273,230 43,427,397 42,114,136 42,051,169 9,203,368 --
----------- ----------- ----------- ----------- ----------- -----------
End of period....................... $25,973,758 $32,273,230 $43,611,774 $42,114,136 $ 6,295,169 $ 9,203,368
=========== =========== =========== =========== =========== ===========
ACCUMULATED UNDISTRIBUTED NET
INVESTMENT INCOME................... $ -- $ -- $ -- $ -- $ -- $ 1,775
=========== =========== =========== =========== =========== ===========
<FN>
(A) Represents the period from the start of business (May 10, 1993) through
March 31, 1994.
See accompanying notes to financial statements.
</FN>
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
STATEMENTS OF CHANGES IN NET ASSETS
For the Years Ended March 31, 1995 and 1994
U.S. GOVERNMENT
SECURITIES FUND
----------------------------------
Year Year
Ended Ended
March 31, 1995 March 31, 1994
-------------- --------------
<S> <C> <C>
FROM OPERATIONS:
Net investment income.................................................. $ 2,181,908 $ 2,202,813
Net realized gains (losses) from security transactions................. (5,097,610) 137,670
Net change in unrealized appreciation/
depreciation on investments.......................................... 2,526,800 (2,436,458)
-------------- --------------
Net decrease in net assets from operations................................ (388,902) (95,975)
-------------- --------------
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income............................................. (2,181,908) (2,202,813)
From net realized gains from security transactions..................... (128,416) (90,537)
-------------- --------------
Decrease in net assets from distributions to shareholders................. (2,310,324) (2,293,350)
-------------- --------------
FROM FUND SHARE TRANSACTIONS (Note 4):
Proceeds from shares sold.............................................. 4,299,872 19,283,804
Net asset value of shares issued in reinvestment
of distributions to shareholders..................................... 1,876,091 1,871,826
Payments for shares redeemed........................................... (17,781,225) (9,920,434)
-------------- --------------
Increase (decrease) in net assets from Fund
share transactions..................................................... (11,605,262) 11,235,196
-------------- --------------
TOTAL INCREASE (DECREASE) IN NET ASSETS .................................. (14,304,488) 8,845,871
NET ASSETS:
Beginning of year...................................................... 40,478,963 31,633,092
--------------- --------------
End of year............................................................ $ 26,174,475 $ 40,478,963
============== ==============
ACCUMULATED UNDISTRIBUTED NET INVESTMENT INCOME .......................... $ -- $ --
============== ==============
<FN>
See accompanying notes to financial statements.
</FN>
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
TREASURY TOTAL RETURN FUND - CLASS A
FINANCIAL HIGHLIGHTS
Per Share Data for a Share Outstanding Throughout Each Year
Year Ended March 31,
------------------------------------------------------------
1995 1994 1993 1992 1991
---------- ---------- ---------- ---------- ----------
<S> <C> <C> <C> <C> <C>
Net asset value at beginning of year............ $ 8.95 $ 9.70 $ 9.10 $ 9.00 $ 8.78
---------- ---------- ---------- ---------- ----------
Income from investment operations:
Net investment income........................ 0.43 0.37 0.55 0.60 0.61
Net realized and unrealized gains (losses)
on investments............................. (0.59) (0.39) 0.87 0.17 0.22
---------- ---------- ---------- ---------- ----------
Total from investment operations................ (0.16) (0.02) 1.42 0.77 0.83
---------- ---------- ---------- ---------- ----------
Less distributions:
Dividends from net investment income(A) .... (0.43) (0.37) (0.55) (0.60) (0.61)
Distributions from net realized gains(A) .... -- (0.36) (0.27) (0.07) --
---------- ---------- ---------- ---------- ----------
Total distributions............................. (0.43) (0.73) (0.82) (0.67) (0.61)
---------- ---------- ---------- ---------- ----------
Net asset value at end of year.................. $ 8.36 $ 8.95 $ 9.70 $ 9.10 $ 9.00
========== ========== ========== ========== ==========
Total return(B) ................................ (1.75%) (0.54%) 16.21% 8.98% 9.95%
========== ========== ========== ========== ==========
Net assets at end of year (000's)............... $25,974 $ 32,190 $ 43,427 $ 49,071 $ 65,326
---------- ---------- ---------- ---------- ----------
Ratio of expenses to average net assets......... 1.25%(C) 1.25% 1.25% 1.25% 1.21%
Ratio of net investment income to average
net assets ................................... 5.06%(C) 3.84% 5.82% 6.58% 6.96%
Portfolio turnover rate......................... 63% 526% 161% 130% 198%
<FN>
(A)For the years ended prior to March 31, 1993, the per share data was
calculated using average shares outstanding throughout each year, whereas for
the years ended March 31, 1995, 1994 and 1993, the per share data was
calculated based upon actual distributions. Actual distributions per share
based upon the actual number of shares outstanding on the ex-dividend dates of
distributions amounted to $.61 and $.62 from net investment income for the
years ended March 31, 1992 and 1991, respectively, and $.08 from net realized
gains for the year ended March 31, 1992.
(B)The total returns shown do not include the effect of applicable sales loads.
(C)During the year ended March 31, 1995, the Adviser absorbed expenses of the
Fund through waiver of a portion of the investment advisory fee. If the
Adviser had not waived any fees, the ratios of expenses to average net assets
and net investment income to average net assets would have been 1.37% and
4.94%, respectively (Note 3).
See accompanying notes to financial statements.
</FN>
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
TREASURY TOTAL RETURN FUND - CLASS C
FINANCIAL HIGHLIGHTS
Per Share Data for a Share Outstanding Throughout Each Period
From Date of
From Public Offering
April 1, 1994 (Aug. 16, 1993)
Through Through
June 8, 1994(A) March 31, 1994
--------------- --------------
<S> <C> <C>
Net asset value at beginning of period.................................... $ 8.95 $ 10.06
--------------- --------------
Income from investment operations:
Net investment income.................................................. 0.06 0.19
Net realized and unrealized losses on investments...................... (0.16) (0.75)
--------------- ---------------
Total from investment operations.......................................... (0.10) (0.56)
--------------- ---------------
Less distributions:
Dividends from net investment income................................... (0.06) (0.19)
Distributions from net realized gains.................................. -- (0.36)
--------------- ---------------
Total distributions....................................................... (0.06) (0.55)
--------------- ---------------
Net asset value at end of period ......................................... $ 8.79 $ 8.95
=============== ===============
Total return(B) .......................................................... (5.71%)(D) (9.50%)(D)
=============== ===============
Net assets at end of period (000's)....................................... $ -- $ 84
Ratios net of expenses reimbursed by the Adviser(C):
Ratio of expenses to average net assets................................ 2.01%(D) 1.90%(D)
Ratio of net investment income to average net assets................... 3.80%(D) 2.27%(D)
Ratios assuming no reimbursement of expenses by the Adviser:
Ratio of expenses to average net assets................................ 17.92%(D) 21.16%(D)
Ratio of net investment income to average net assets................... (12.11%)(D) (16.99%)(D)
Portfolio turnover rate................................................... 94%(D) 526%(D)
<FN>
(A)On June 8, 1994, the Fund terminated the public offering of Class C shares
(Note 1).
(B)The total returns shown do not include the effect of applicable sales loads.
(C)The Adviser has periodically absorbed expenses of the Fund through waiver of
the investment advisory fee and reimbursement of other operating expenses
(Note 3).
(D)Annualized.
See accompanying notes to financial statements.
</FN>
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
UTILITY FUND - CLASS A
FINANCIAL HIGHLIGHTS
Per Share Data for a Share Outstanding Throughout Each Year
Year Ended March 31,
------------------------------------------------------------
1995 1994 1993 1992 1991
---------- ---------- ---------- ---------- ----------
<S> <C> <C> <C> <C> <C>
Net asset value at beginning of year............ $ 10.52 $ 11.34 $ 10.58 $ 10.01 $ 9.75
---------- ---------- ---------- ---------- ----------
Income from investment operations:
Net investment income........................ 0.43 0.37 0.48 0.51 0.61
Net realized and unrealized gains (losses)
on investments............................. (0.05) (0.59) 1.62 0.75 0.30
---------- ---------- ---------- ---------- ----------
Total from investment operations................ 0.38 (0.22) 2.10 1.26 0.91
---------- ---------- ---------- ---------- ----------
Less distributions:
Dividends from net investment income (A) .... (0.43) (0.37) (0.48) (0.51) (0.61)
Distributions from net realized gains(A) .... -- (0.23) (0.86) (0.18) (0.04)
---------- ---------- ---------- ---------- ----------
Total distributions............................. (0.43) (0.60) (1.34) (0.69) (0.65)
---------- ---------- ---------- ---------- ----------
Net asset value at end of year.................. $ 10.47 $ 10.52 $ 11.34 $ 10.58 $ 10.01
========== ========== ========== ========== ==========
Total return(B) ................................ 3.68% (2.11%) 20.64% 11.84% 9.23%
========== ========== ========== ========== ==========
Net assets at end of year (000's)............... $40,012 $ 40,373 $ 42,051 $ 29,398 $ 11,214
========== ========== ========== ========== ==========
Ratio of expenses to average net assets......... 1.25% 1.25% 1.40% 1.63% 1.80%(C)
Ratio of net investment income to average
net assets ................................... 4.06% 3.32% 4.41% 4.83% 6.25%(C)
Portfolio turnover rate......................... 17% 91% 137% 33% 61%
<FN>
(A)For the years ended prior to March 31, 1993, the per share data was
calculated using average shares outstanding throughout each year, whereas for
the years ended March 31, 1995, 1994 and 1993, the per share data was
calculated based upon actual distributions. Actual distributions per share
based upon the actual number of shares outstanding on the ex-dividend dates of
distributions amounted to $.48 and $.57 from net investment income for the
years ended March 31, 1992 and 1991, respectively, and $.13 and $.03 from net
realized capital gains for the years ended March 31, 1992 and 1991,
respectively.
(B)The total returns shown do not include the effect of applicable sales loads.
(C)During the year ended March 31, 1991, the Adviser absorbed expenses of the
Fund through waiver of a portion of the investment advisory fee. If the
Adviser had not waived any fees, the ratios of expenses to average net assets
and net investment income to average net assets would have been 1.91% and
6.14%, respectively.
See accompanying notes to financial statements.
</FN>
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
UTILITY FUND - CLASS C
FINANCIAL HIGHLIGHTS
Per Share Data for a Share Outstanding Throughout Each Period
From Date of
Public Offering
Year (Aug. 2, 1993)
Ended Through
March 31, 1995 March 31, 1994
--------------- ---------------
<S> <C> <C>
Net asset value at beginning of period.................................... $ 10.51 $ 11.55
--------------- ---------------
Income from investment operations:
Net investment income.................................................. 0.35 0.23
Net realized and unrealized losses on investments...................... (0.04) (0.81)
--------------- ---------------
Total from investment operations.......................................... 0.31 (0.58)
--------------- ---------------
Less distributions:
Dividends from net investment income................................... (0.36) (0.23)
Distributions from net realized gains.................................. -- (0.23)
--------------- ---------------
Total distributions....................................................... (0.36) (0.46)
--------------- ---------------
Net asset value at end of period.......................................... $ 10.46 $ 10.51
=============== ===============
Total return(A) .......................................................... 3.00% (7.89%)(B)
=============== ===============
Net assets at end of period (000's)....................................... $ 3,599 $ 1,742
=============== ===============
Ratio of expenses to average net assets .................................. 2.00% 2.00%(B)
Ratio of net investment income to average net assets ..................... 3.41% 2.19%(B)
Portfolio turnover rate................................................... 17% 91%(B)
<FN>
(A)The total returns shown do not include the effect of applicable sales loads.
(B)Annualized.
See accompanying notes to financial statements.
</FN>
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
EQUITY FUND - CLASS A
FINANCIAL HIGHLIGHTS
Per Share Data for a Share Outstanding Throughout Each Period
From Date of
Public Offering
Year (Aug. 2, 1993)
Ended Through
March 31, 1995 March 31, 1994
--------------- ---------------
<S> <C> <C>
Net asset value at beginning of period.................................... $ 9.26 $ 10.02
--------------- ---------------
Income from investment operations:
Net investment income.................................................. 0.15 0.08
Net realized and unrealized gains (losses) on investments.............. 0.59 (0.34)
--------------- ---------------
Total from investment operations.......................................... 0.74 (0.26)
--------------- ---------------
Less distributions:
Dividends from net investment income................................... (0.16) (0.08)
Distributions from net realized gains.................................. -- (0.42)
--------------- ---------------
Total distributions....................................................... (0.16) (0.50)
--------------- ---------------
Net asset value at end of period.......................................... $ 9.84 $ 9.26
=============== ===============
Total return(A) .......................................................... 8.07% (3.98%)(C)
=============== ===============
Net assets at end of period (000's)....................................... $ 4,300 $ 3,346
=============== ===============
Ratios net of fees waived and expenses reimbursed by the Adviser(B):
Ratio of expenses to average net assets................................ 1.25% 1.24%(C)
Ratio of net investment income to average net assets................... 1.57% 0.82%(C)
Ratios assuming no waiver of fees or reimbursement of expenses by the Adviser:
Ratio of expenses to average net assets................................ 1.94% 2.04%(C)
Ratio of net investment income to average net assets................... 0.88% 0.02%(C)
Portfolio turnover rate................................................... 159% 109%(C)
<FN>
(A)The total returns shown do not include the effect of applicable sales loads.
(B)The Adviser has periodically absorbed expenses of the Fund through waiver of
the investment advisory fee and reimbursement of a portion of other operating
expenses (Note 3).
(C)Annualized.
See accompanying notes to financial statements.
</FN>
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
EQUITY FUND - CLASS C
FINANCIAL HIGHLIGHTS
Per Share Data for a Share Outstanding Throughout Each Period
From Date of
Public Offering
Year (June 7, 1993)
Ended Through
March 31, 1995 March 31, 1994
--------------- ---------------
<S> <C> <C>
Net asset value at beginning of period.................................... $ 9.26 $ 10.00
--------------- ---------------
Income from investment operations:
Net investment income.................................................. 0.10 0.03
Net realized and unrealized gains (losses) on investments.............. 0.57 (0.32)
--------------- ---------------
Total from investment operations.......................................... 0.67 (0.29)
--------------- ---------------
Less distributions:
Dividends from net investment income................................... (0.07) (0.03)
Distributions from net realized gains.................................. -- (0.42)
--------------- ---------------
Total distributions....................................................... (0.07) (0.45)
--------------- ---------------
Net asset value at end of period.......................................... $ 9.86 $ 9.26
=============== ===============
Total return(A) .......................................................... 7.32% (3.58%)(C)
=============== ===============
Net assets at end of period (000's)....................................... $ 1,995 $ 5,857
=============== ===============
Ratios net of fees waived and expenses reimbursed by the Adviser(B):
Ratio of expenses to average net assets................................ 2.00% 1.94%(C)
Ratio of net investment income to average net assets .................. 0.68% 0.58%(C)
Ratios assuming no waiver of fees or reimbursement of expenses by the Adviser:
Ratio of expenses to average net assets................................ 2.50% 2.33%(C)
Ratio of net investment income to average net assets................... 0.18% 0.19%(C)
Portfolio turnover rate................................................... 159% 109%(C)
<FN>
(A)The total returns shown do not include the effect of applicable sales loads.
(B)The Adviser has periodically absorbed expenses of the Fund through waiver of
a portion of the investment advisory fee and reimbursement of a portion of
other operating expenses (Note 3).
(C)Annualized.
See accompanying notes to financial statements.
</FN>
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
U.S. GOVERNMENT SECURITIES FUND
FINANCIAL HIGHLIGHTS
Per Share Data for a Share Outstanding Throughout Each Year
Year Ended March 31,
------------------------------------------------------------
1995 1994 1993 1992 1991
---------- ---------- ---------- ---------- ----------
<S> <C> <C> <C> <C> <C>
Net asset value at beginning of year............ $ 9.85 $ 10.47 $ 10.18 $ 10.04 $ 9.78
---------- ---------- ---------- ---------- ----------
Income from investment operations:
Net investment income........................ 0.58 0.64 0.69 0.79 0.81
Net realized and unrealized
gains (losses) on investments.............. (0.59) (0.59) 0.47 0.14 0.26
---------- ---------- ---------- ---------- ----------
Total from investment operations................ (0.01) 0.05 1.16 0.93 1.07
---------- ---------- ---------- ---------- ----------
Less distributions:
Dividends from net investment income......... (0.58) (0.64) (0.69) (0.79) (0.81)
Distributions from net realized gains........ (0.04) (0.03) (0.18) -- --
---------- ---------- ---------- ---------- ----------
Total distributions............................. (0.62) (0.67) (0.87) (0.79) (0.81)
---------- ---------- ---------- ---------- ----------
Net asset value at end of year.................. $ 9.22 $ 9.85 $ 10.47 $ 10.18 $ 10.04
========== ========== ========== ========== ==========
Total return(A) ................................ 0.06% 0.30% 11.71% 9.46% 11.37%
========== ========== ========== ========== ==========
Net assets at end of year (000's) .............. $26,174 $ 40,479 $ 31,633 $ 40,253 $ 43,753
========== ========== ========== ========== ==========
Ratio of expenses to average net assets......... 1.20% 1.20% 1.20% 1.19% 1.30%
Ratio of net investment income
to average net assets........................ 6.26% 6.14% 6.61% 7.73% 8.19%
Portfolio turnover rate......................... 205% 246% 188% 55% 53%
<FN>
(A)The total returns shown do not include the effect of applicable sales loads.
See accompanying notes to financial statements.
</FN>
</TABLE>
<PAGE>
NOTES TO FINANCIAL STATEMENTS
March 31, 1995
1. Significant Accounting Policies
The Treasury Total Return Fund, the Utility Fund, the Equity Fund and the U.S.
Government Securities Fund (collectively, the Funds) are each a series of shares
of Midwest Strategic Trust (the Trust). The Trust is registered under the
Investment Company Act of 1940, as amended, as a diversified, open-end
management investment company. The Trust was established as a Massachusetts
business trust under a Declaration of Trust dated November 18, 1982. The
Declaration of Trust, as amended, permits the Trustees to issue an unlimited
number of shares of each Fund.
The Utility Fund and the Equity Fund each offer two classes of shares: Class A
shares (sold subject to a maximum 4% front-end sales load and a distribution fee
of up to .25% of average daily net assets) and Class C shares (sold subject to a
maximum contingent deferred sales load of 1% if redeemed within a one-year
period from purchase and a distribution fee of up to 1% of average daily net
assets). Each Class A and Class C share of 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 will
cause Class C shares to have a higher expense ratio and to pay lower dividends
than those related to 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 rights with respect to matters relating to its
own distribution arrangements.
Prior to June 8, 1994, the Treasury Total Return Fund also offered two classes
of shares. However, all Class C shares of the Fund have been redeemed and are no
longer offered for sale. There are no Class C shares outstanding.
The following is a summary of the Funds' significant accounting policies:
Security valuation -- The Funds' portfolio securities are valued as of the close
of business of the regular session of the New York Stock Exchange (currently
4:00 p.m., Eastern time). U.S. Government obligations and mortgage-backed
securities are generally valued at their most recent bid price as obtained from
one or more of the major market makers for such securities or are valued based
on estimates of market values obtained from yield data relating to instruments
or securities with similar characteristics. Portfolio securities listed on stock
exchanges and securities traded in the over-the-counter market are valued at the
last sales price as of the close of business on the day the securities are being
valued. Securities not traded on a particular day, or for which the last sale
price is not readily available, are valued at the closing bid price quoted by
brokers that make markets in the securities. On limited occasions, if in the
Adviser's opinion, the valuation provided by a pricing service ignores certain
market conditions affecting the value of a security, or if the pricing service
cannot provide a valuation, the Adviser will use (consistent with procedures
established by the Board of Trustees) such other valuation as it considers to
represent fair value.
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 a 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 value of
the repurchase agreement. In addition, each Fund actively monitors and seeks
additional collateral, as needed. In the event of a bankruptcy or other default
of the seller of a repurchase agreement, a Fund could experience both delays in
liquidating the underlying security and losses. These losses would equal the
cost of the repurchase agreement and accrued interest, net of any proceeds
received in liquidation of the underlying securities. To minimize the
possibility of loss, each Fund enters into repurchase agreements only with
institutions deemed to be creditworthy by the Adviser, including banks having
assets in excess of $10 billion and primary U.S. Government securities dealers.
Refer to each Fund's Portfolio of Investments for the face amount of repurchase
agreements and accrued interest as of March 31, 1995.
Share valuation -- The net asset value of the Treasury Total Return Fund and the
U.S. Government Securities Fund is calculated daily by dividing the total value
of each Fund's assets, less liabilities, by the number of shares outstanding.
The maximum offering price per share of the Treasury Total Return Fund is equal
to net asset value per share plus a sales load equal to 4.17% of net asset value
(or 4% of the offering price). The maximum offering price per share of the U.S.
Government Securities Fund is equal to net asset value per share plus a sales
load equal to 2.04% of net asset value (or 2% of the offering price). The
redemption price per share of each Fund is equal to the net asset value per
share.
The net asset value of Class A shares and Class C shares of each of the Utility
Fund and the Equity Fund is calculated daily for each class by dividing the
total value of the Fund's assets applicable to that class, less liabilities
applicable to that class, by the number of shares of that class outstanding. The
maximum offering price of Class A shares of each Fund is equal to net asset
value per share plus a sales load equal to 4.17% of net asset value (or 4% of
the offering price). The offering price of Class C shares of each Fund is equal
to net asset value per share.
The redemption price per share of Class A shares and Class C shares of each of
the Utility Fund and the Equity Fund is equal to the net asset value per share.
Effective February 1, 1995, Class C shares of the Utility Fund and the Equity
Fund are each 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.
<PAGE>
Investment income -- Interest income is accrued as earned. Dividend income is
recorded on the ex-dividend date.
Distributions to shareholders -- Dividends from net investment income are
declared and paid quarterly to shareholders of the Utility Fund and the Equity
Fund. Dividends from net investment income are declared daily and paid on the
last business day of each month to shareholders of the Treasury Total Return
Fund and the U.S. Government Securities 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.
Allocations between classes -- Investment income earned by the Utility Fund and
the Equity Fund is allocated daily to each class of shares based upon its
proportionate share of total net assets of the Fund. 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.
Securities traded on a to-be-announced basis -- The U.S. Government Securities
Fund frequently trades portfolio securities on a "to-be-announced" (TBA) basis.
In a TBA transaction, the Fund has committed to purchase securities for which
all specific information is not yet known at the time of the trade, particularly
the face amount in mortgage-backed securities transactions. Securities purchased
on a TBA basis are not settled until they are delivered to the Fund, normally 15
to 45 days later. These transactions are subject to market fluctuations and
their current value is determined in the same manner as for other portfolio
securities. When effecting such transactions, assets of a dollar amount
sufficient to make payment for the portfolio securities to be purchased are
placed in a segregated account on the trade date.
Federal income tax -- It is each Fund's policy to comply with the special
provisions of the Internal Revenue Code available to regulated investment
companies. As provided therein, in any fiscal year in which a Fund so qualifies,
and distributes at least 90% of its taxable net income, the Fund (but not the
shareholders) will be relieved of federal income tax on the income distributed.
Accordingly, no provision for income taxes is made.
In order to avoid imposition of the excise tax applicable to regulated
investment companies, it is also each Fund's intention to declare as dividends
in each calendar year at least 98% of its net investment income (earned during
the calendar year) and 98% of its net realized capital gains (earned during the
twelve months ending October 31 of the calendar year) plus undistributed amounts
from prior years.
The following information is based upon the federal income tax cost of portfolio
investments (excluding repurchase agreements) as of March 31, 1995:
<TABLE>
Treasury Total U.S. Govt.
Return Utility Equity Securities
Fund Fund Fund Fund
------------ ------------- ------------- ------------
<S> <C> <C> <C> <C>
Gross unrealized appreciation................... $ 20,617 $ 998,992 $ 333,773 $ 406,244 Gross unrealized
depreciation.................................... (3,874) (1,234,709) (72,171) --
------------ ------------- ------------- ------------
Net unrealized appreciation (depreciation)...... $ 16,743 $ (235,717) $ 261,602 $ 406,244
============ ============= ============= ============
Federal income tax cost......................... $ 24,824,306 $ 40,549,992 $ 4,586,511 $ 23,393,246
============ ============= ============= ============
</TABLE>
As of March 31, 1995, the Treasury Total Return Fund, the Utility Fund, the
Equity Fund and the U.S. Government Securities Fund, had capital loss
carryforwards for federal income tax purposes of $2,090,947, $368,974, $558,651
and $5,209,965, respectively, none of which expire until at least March 31,
2002. These capital loss carryforwards may be utilized in future years to offset
net realized capital gains prior to distributing such gains to shareholders.
<PAGE>
2. Investment Transactions
Investment transactions (excluding short-term investments) were as follows for
the year ended March 31, 1995:
<TABLE>
Treasury Total U.S. Govt.
Return Utility Equity Securities
Fund Fund Fund Fund
------------ ------------ ------------ ------------
<S> <C> <C> <C> <C>
Purchases of investment securities............. $ 8,931,250 $ 15,738,673 $ 9,371,993 $ 63,990,978
============ ============= ============= ============
Proceeds from sales and maturities
of investment securities .................... $ 28,020,469 $ 5,907,338 $ 10,948,111 $ 81,533,680
============ ============= ============= ============
</TABLE>
3. Transactions with Affiliates
The President of the Trust is the controlling shareholder of Leshner Financial,
Inc., whose subsidiaries include Midwest Group Financial Services, Inc. (MGFS),
the Funds' principal underwriter and investment adviser, and MGF Service Corp.
(MGF), the shareholder servicing and transfer agent and accounting and pricing
agent for the Trust.
MANAGEMENT AGREEMENTS
The Funds' investments are managed by MGFS under the terms of separate
Management Agreements. Under the Management Agreements, each Fund pays MGFS a
fee, computed and accrued daily and paid monthly, at an annual rate of 0.75% of
its average daily net assets up to $200,000,000, 0.7% of such net assets from
$200,000,000 to $500,000,000, and 0.5% of such net assets in excess of
$500,000,000.
States in which shares of the Trust are offered may impose an expense limitation
based upon net assets. MGFS has agreed to reimburse each Fund yearly for
expenses which exceed the lowest applicable expense limitation of any state. No
such reimbursement was required for the year ended March 31, 1995. In order to
reduce the operating expenses of the Treasury Total Return Fund, MGFS
voluntarily waived $32,713 of advisory fees during the period. In order to
reduce the operating expenses of the Equity Fund, MGFS voluntarily waived
advisory fees of $46,905 and reimbursed the Fund for $14,964 of Class C expenses
during the period.
TRANSFER AGENT AND SHAREHOLDER SERVICE AGREEMENT
Under the terms of the Transfer, Dividend Disbursing, Shareholder Service and
Plan Agency Agreement between the Trust and MGF, MGF maintains the records for
each shareholder's account, answers shareholders' inquiries concerning their
accounts, processes purchases and redemptions of each Fund's shares, acts as
dividend and distribution disbursing agent and performs other shareholder
service functions. Under the terms of the Agreement, MGF receives for its
services a fee payable monthly at an annual rate of $21.00 per shareholder
account from each of the Treasury Total Return Fund and the U.S. Government
Securities Fund, and $17.00 per shareholder account from each of the Utility
Fund and Equity Fund, subject to a $1,000 minimum monthly fee, for each Fund, or
class of Fund, as applicable. In addition, each Fund pays out-of-pocket
expenses, including but not limited to, postage and supplies.
ACCOUNTING SERVICES AGREEMENT
Under the terms of the Accounting Services Agreement between the Trust and MGF,
MGF calculates the daily net asset value per share and maintains the financial
books and records of each Fund. For these services, MGF receives a monthly fee
from each Fund. The monthly fee, based on current asset levels, is $3,000 for
the Treasury Total Return Fund, $4,500 for each of the Utility Fund and the
Equity Fund, and $3,500 for the U.S. Government Securities Fund.
UNDERWRITING AGREEMENT
Under the terms of the Underwriting Agreement, MGFS earned $2,383, $13,749,
$1,837 and $1,208, from underwriting and broker commissions on the sale of
shares of the Treasury Total Return Fund, the Utility Fund, the Equity Fund, and
the U.S. Government Securities Fund, respectively, for the year ended March 31,
1995.
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 MGFS for expenses related to
the distribution and promotion of shares. The annual limitation for payment of
such expenses under the Class A Plan is .25% of average daily net assets
applicable 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
MGFS 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 applicable to Class C shares.
<PAGE>
4. Fund Share Transactions
Proceeds and payments on Fund shares as shown in the Statements of Changes in
Net Assets are the result of the following share transactions for the periods
ended March 31, 1995 and 1994:
<TABLE>
TREASURY TOTAL UTILITY EQUITY
RETURN FUND FUND FUND
-------------------------------------------------------------------------
Year Year Year Year Year Period
Ended Ended Ended Ended Ended Ended
March 31, March 31, March 31, March 31, March 31, March 31,
1995 1994 1995 1994 1995 1994(A)
---------- ---------- ---------- ---------- ---------- ----------
<S> <C> <C> <C> <C> <C> <C>
CLASS A
Shares sold......................... 469,687 281,628 817,927 1,071,183 197,947 456,269
Shares issued in reinvestment
of distributions to shareholders.. 145,559 257,287 139,905 179,096 6,598 17,434
Shares redeemed..................... (1,105,173) (1,420,644) (975,981) (1,119,995) (129,000) (112,485)
---------- ---------- ---------- ---------- ---------- ----------
Net increase (decrease) in shares
outstanding ...................... (489,927) (881,729) (18,149) 130,284 75,545 361,218
Shares outstanding, beginning
of period ........................ 3,595,361 4,477,090 3,839,159 3,708,875 361,218 --
---------- ---------- ---------- ---------- ---------- ----------
Shares outstanding, end of period... 3,105,434 3,595,361 3,821,010 3,839,159 436,763 361,218
========== ========== ========== ========== ========== ==========
CLASS C
Shares sold......................... 1,394 9,157 266,298 200,576 37,075 1,067,326
Shares issued in reinvestment
of distributions to shareholders.. 51 193 8,821 5,201 2,646 26,623
Shares redeemed..................... (10,792) (3) (96,684) (40,145) (469,556) (461,715)
---------- ---------- ---------- ---------- ---------- ----------
Net increase (decrease) in shares
outstanding ...................... (9,347) 9,347 178,435 165,632 (429,835) 632,234
Shares outstanding, beginning
of period ........................ 9,347 -- 165,632 -- 632,234 --
---------- ---------- ---------- ---------- ---------- ----------
Shares outstanding, end of period... -- 9,347 344,067 165,632 202,399 632,234
========== ========== ========== ========== ========== ==========
</TABLE>
<TABLE>
U.S. GOVERNMENT
SECURITIES FUND
--------------------------------
Year Year
Ended Ended
March 31, 1995 March 31, 1994
--------------- ---------------
<S> <C> <C>
Shares sold............................................................... 456,445 1,859,282
Shares issued in reinvestment of distributions to shareholders............ 203,373 179,958
Shares redeemed........................................................... (1,932,052) (949,964)
--------------- ---------------
Net increase (decrease) in shares outstanding............................. (1,272,234) 1,089,276
Shares outstanding, beginning of year..................................... 4,110,002 3,020,726
--------------- ---------------
Shares outstanding, end of year........................................... 2,837,768 4,110,002
=============== ===============
<FN>
(A)Represents the period from the start of business (May 10, 1993) through March
31, 1994.
</FN>
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
TREASURY TOTAL RETURN FUND
PORTFOLIO OF INVESTMENTS
March 31, 1995
Par Market
Value U.S. TREASURY OBLIGATIONS-- 94.0% Value
- -------------- --------------------------------- -------------
<C> <S> <C>
$ 8,000,000 U.S. Treasury Bills, 4/6/95.................................................. $ 7,996,223
7,000,000 U.S. Treasury Bills, 5/25/95................................................. 6,942,768
7,000,000 U.S. Treasury Bills, 7/20/95................................................. 6,878,619
3,000,000 U.S. Treasury Notes, 7.50%, 1/31/96.......................................... 3,023,439
- -------------- -------------
$ 25,000,000 TOTAL U.S. TREASURY OBLIGATIONS
============== (Amortized Cost $24,824,306) ............................................. $ 24,841,049
-------------
</TABLE>
<TABLE>
Face Market
Amount REPURCHASE AGREEMENTS(1) -- 6.0% Value
- -------------- --------------------------------- -------------
<C> <S> <C>
$ 1,586,000 Harris-Nesbitt Thomson Securities, Inc., 5.85%, dated 3/31/95, due 4/3/95,
repurchase proceeds $1,586,773........................................... $ 1,586,000
- -------------- -------------
$ 1,586,000 TOTAL REPURCHASE AGREEMENTS ................................................. $ 1,586,000
============== -------------
TOTAL INVESTMENTS AND REPURCHASE AGREEMENTS AT VALUE -- 100% ............... $ 26,427,049
=============
<FN>
(1)Repurchase agreements are fully collateralized by U.S. Treasury obligations.
See accompanying notes to financial statements.
</FN>
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
UTILITY FUND
PORTFOLIO OF INVESTMENTS
March 31, 1995
Market
COMMON STOCK -- 75.0% Shares Value
- ----------------------- -------- ---------
<S> <C> <C>
Ameritech Corp................................................................ 45,000 $ 1,856,250
AT&T Corp..................................................................... 30,000 1,552,500
Baltimore Gas & Electric...................................................... 40,050 946,181
Bell Atlantic Corp............................................................ 20,000 1,055,000
BellSouth Corp................................................................ 16,000 952,000
Carolina Power & Light........................................................ 45,000 1,220,625
CMS Energy Corp............................................................... 20,000 467,500
Central Louisiana Electric.................................................... 8,000 179,000
DPL, Inc...................................................................... 50,000 1,043,750
Dominion Resources Inc./VA.................................................... 45,000 1,620,000
Duke Power Co................................................................. 50,000 1,925,000
FPL Group..................................................................... 50,000 1,818,750
Florida Progress Corp......................................................... 65,000 1,958,125
GTE Corp...................................................................... 65,000 2,161,250
Indiana Energy Inc............................................................ 15,000 279,375
Kansas City Power & Light..................................................... 90,000 2,047,500
MCN Corp...................................................................... 100,000 1,837,500
Montana Power Co.............................................................. 75,000 1,706,250
Nicor, Inc.................................................................... 40,000 1,000,000
Northern States Power......................................................... 46,000 2,024,000
Nynex Corp.................................................................... 18,000 713,250
Oneok Inc..................................................................... 25,000 471,875
Scana Corp.................................................................... 35,000 1,461,250
Union Electric Co............................................................. 50,000 1,768,750
Wicor, Inc.................................................................... 25,000 703,125
-------------
TOTAL COMMON STOCK (Cost $32,909,996)......................................... $ 32,768,806
-------------
</TABLE>
<TABLE>
Par Market
U.S. TREASURY OBLIGATIONS -- 11.3% Value Value
- ------------------------------------ -------------- -------------
<S> <C> <C>
U.S. Treasury Notes, 4.25%, 11/30/95.......................................... $ 5,000,000 $ 4,931,250
-------------- -------------
TOTAL U.S. TREASURY OBLIGATIONS (Amortized Cost $5,007,185)................... $ 5,000,000 $ 4,931,250
============== -------------
</TABLE>
<TABLE>
Par Market
CORPORATE BONDS -- 6.0% Value Value
- ------------------------- -------------- -------------
<S> <C> <C>
Dayton Power & Light, 8.40%, 12/1/22.......................................... $ 1,000,000 $ 1,000,245
General Telephone Northwest, 9.75%, 10/15/30.................................. 500,000 536,648
New York Telephone, 9.375%, 7/15/31........................................... 1,000,000 1,077,326
-------------- -------------
TOTAL CORPORATE BONDS (Amortized Cost $2,632,811)............................. $ 2,500,000 $ 2,614,219
============== -------------
TOTAL INVESTMENTS AT VALUE -- 92.3% (Amortized Cost $40,549,992)............ $ 40,314,275
-------------
</TABLE>
<TABLE>
Face Market
REPURCHASE AGREEMENTS(1) -- 7.7% Amount Value
- ---------------------------------- -------------- -------------
<S> <C> <C>
Harris-Nesbitt Thomson Securities, Inc., 5.85%, dated 3/31/95, due 4/3/95
repurchase proceeds $3,374,644.......................................... $ 3,373,000 $ 3,373,000
-------------- -------------
TOTAL REPURCHASE AGREEMENTS .................................................. $ 3,373,000 $ 3,373,000
============== -------------
TOTAL INVESTMENTS AND REPURCHASE AGREEMENTS AT VALUE -- 100% ................ $ 43,687,275
=============
<FN>
(1)Repurchase agreements are fully collateralized by U.S. Government or agency
obligations.
See accompanying notes to financial statements.
</FN>
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
EQUITY FUND
PORTFOLIO OF INVESTMENTS
March 31, 1995
Market
COMMON STOCK -- 80.1% Shares Value
- ----------------------- -------- -------
CONSUMER PRODUCTS -- 35.5%
<S> <C> <C>
Albertson's Inc............................................................... 7,400 $ 238,650
Bassett Furniture Industries, Inc............................................. 6,600 173,250
Gannett Co., Inc.............................................................. 3,500 186,812
Kellogg Co.................................................................... 4,200 245,175
Mattel, Inc................................................................... 8,500 209,312
Procter & Gamble Co........................................................... 5,000 331,250
R.R. Donnelley & Sons Co...................................................... 4,000 137,500
Seagram Co., LTD.............................................................. 6,000 190,500
Unilever N.V.................................................................. 2,000 262,500
Whitman Corp.................................................................. 9,000 172,125
-------------
$ 2,147,074
-------------
DRUGS -- 10.0%
Bristol-Meyers Squibb Co...................................................... 4,900 $ 308,700
Schering-Plough Corp.......................................................... 4,000 297,500
-------------
$ 606,200
-------------
TECHNOLOGY -- 8.4%
Loral Corp.................................................................... 7,500 $ 318,750
Motorola, Inc................................................................. 3,500 191,188
-------------
$ 509,938
-------------
FINANCIAL -- 8.4%
American General Corp......................................................... 8,600 $ 277,350
Jefferson-Pilot Corp.......................................................... 3,900 230,588
-------------
$ 507,938
-------------
UTILITIES -- 7.2%
AT&T Corp..................................................................... 6,000 $ 310,500
Scecorp....................................................................... 8,100 126,563
-------------
$ 437,063
-------------
INDUSTRIAL -- 7.0%
Emerson Electric Co........................................................... 2,400 $ 159,600
Sherwin-Williams Co........................................................... 7,800 264,225
-------------
$ 423,825
-------------
CHEMICALS -- 3.6%
Hanna (M.A.) Co............................................................... 8,600 $ 216,075
-------------
TOTAL COMMON STOCK (Cost $4,586,511).......................................... $ 4,848,113
-------------
</TABLE>
<TABLE>
Face Market
REPURCHASE AGREEMENTS(1) -- 19.9% Amount Value
- ----------------------------------- -------------- -------------
<S> <C> <C>
Harris-Nesbitt Thomson Securities, Inc., 5.85%, dated 3/31/95, due 4/3/95
repurchase proceeds $1,196,583........................................... $ 1,196,000 $ 1,196,000
-------------- -------------
TOTAL REPURCHASE AGREEMENTS .................................................. $ 1,196,000 $ 1,196,000
============== -------------
TOTAL INVESTMENTS AND REPURCHASE AGREEMENTS AT VALUE -- 100% ................ $ 6,044,113
=============
<FN>
(1)Repurchase agreements are fully collateralized by U.S. Government or agency
obligations.
See accompanying notes to financial statements.
</FN>
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
U.S. GOVERNMENT SECURITIES FUND
PORTFOLIO OF INVESTMENTS
March 31, 1995
Par Market
Value Value
- -------------- -------------
U.S. TREASURY OBLIGATIONS -- 22.8%
<C> <S> <C>
$ 2,000,000 U.S. Treasury Bills, 9/28/95................................................. $ 1,941,952
1,000,000 U.S. Treasury Notes, 7.50%, 12/31/96......................................... 1,011,875
2,000,000 U.S. Treasury Notes, 7.25%, 8/15/04.......................................... 2,001,250
1,000,000 U.S. Treasury Notes, 7.50%, 2/15/05.......................................... 1,020,312
- -------------- -------------
$ 6,000,000 TOTAL U.S. TREASURY OBLIGATIONS (Amortized Cost $5,892,509) ................. $ 5,975,389
- -------------- -------------
FEDERAL HOME LOAN MORTGAGE CORPORATION SECURITIES -- 21.9%
$ 2,000,000 Federal Home Loan Mortgage Corp., 6.02%, 4/5/00.............................. $ 1,879,118
2,000,000 Federal Home Loan Mortgage Corp., 7.188%, 9/15/99............................ 1,981,082
2,000,000 Federal Home Loan Mortgage Corp., 6.55%, 4/2/03.............................. 1,861,149
- -------------- -------------
$ 6,000,000 TOTAL FEDERAL HOME LOAN MORTGAGE CORPORATION SECURITIES
- -------------- (Amortized Cost $5,613,458).............................................. $ 5,721,349
-------------
FEDERAL NATIONAL MORTGAGE ASSOCIATION SECURITIES -- 46.2%
$ 3,531,987 Federal National Mortgage Assoc. Pool #280500, 8.00%, 10/1/24................ $ 3,493,375
2,762,688 Federal National Mortgage Assoc. Pool #293091, 8.00%, 10/1/24................ 2,732,487
1,015,957 Federal National Mortgage Assoc. Pool #296011, 8.50%, 10/1/24................ 1,026,126
1,834,978 Federal National Mortgage Assoc. Pool #296303, 8.00%, 10/1/24................ 1,814,918
980,001 Federal National Mortgage Assoc. Pool #297826, 8.50%, 11/1/24................ 989,811
1,020,000 Federal National Mortgage Assoc. Pool #300001, 8.50%, 3/1/25................. 1,030,200
1,005,777 Federal National Mortgage Assoc. Pool #307586, 8.50%, 3/1/25................. 1,015,835
- -------------- -------------
$ 12,151,388 TOTAL FEDERAL NATIONAL MORTGAGE ASSOCIATION SECURITIES
- -------------- (Amortized Cost $11,887,279)............................................. $ 12,102,752
-------------
$ 24,151,388 TOTAL INVESTMENTS AT VALUE-- 90.9%
============== (Amortized Cost $23,393,246)............................................. $ 23,799,490
-------------
</TABLE>
<TABLE>
Face Market
Amount REPURCHASE AGREEMENTS(1) -- 9.1% Value
- -------------- --------------------------------- -------------
<C> <S> <C>
$ 2,395,000 Harris-Nesbitt Thomson Securities, Inc., 5.85%, dated 3/31/95, due 4/3/95,
repurchase proceeds $2,396,168........................................... $ 2,395,000
- -------------- -------------
$ 2,395,000 TOTAL REPURCHASE AGREEMENTS ................................................. $ 2,395,000
============== -------------
TOTAL INVESTMENTS AND REPURCHASE AGREEMENTS AT VALUE -- 100% ............... $ 26,194,490
=============
<FN>
(1)Repurchase agreements are fully collateralized by U.S. Government or agency obligations.
</FN>
</TABLE>
<PAGE>
REPORT OF INDEPENDENT PUBLIC ACCOUNTANTS
To the Shareholders and Board of Trustees of Midwest Strategic Trust:
We have audited the accompanying statements of assets and liabilities of the
Treasury Total Return Fund, Utility Fund, Equity Fund and U.S. Government
Securities Fund of the Midwest Strategic Trust (a Massachusetts business trust),
including the portfolios of investments, as of March 31, 1995, and the related
statements of operations, the statements of changes in net assets, and the
financial highlights for the periods indicated thereon. These financial
statements and financial highlights are the responsibility of the Trust's
management. Our responsibility is to express an opinion on these financial
statements and financial highlights based on our audits.
We conducted our audits in accordance with generally accepted accounting
standards. Those standards require that we plan and perform the audits to obtain
reasonable assurance about whether the financial statements and financial
highlights are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements. Our procedures included confirmation of securities owned as of March
31, 1995, by correspondence with the custodian. An audit also includes assessing
the accounting principles used and significant estimates made by management, as
well as evaluating the overall financial statement presentation. We believe that
our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of the
Treasury Total Return Fund, Utility Fund, Equity Fund and U.S. Government
Securities Fund of the Midwest Strategic Trust as of March 31, 1995, the results
of their operations, the changes in their net assets, and the financial
highlights for the periods indicated thereon, in conformity with generally
accepted accounting principles.
Cincinnati, Ohio
May 3, 1995
<PAGE>
Appendix
A representation of the graphic material contained in the Midwest Strategic
Trust March 31, 1995 Annual Report is set forth below.
1. Comparison of Change in Value of $10,000 Investment in the Treasury Total
Return Fund (Class A) and the Merrill Lynch Treasuries (All Maturities)
Index.
TREASURY TOTAL RETURN FUND
M. L. TREASURIES TREASURY TOTAL RETURN FUND:
--------------------------
(All Maturities) Index
- ----------------------
QTRLY QTRLY
DATE RETURN BALANCE DATE RETURN BALANCE
- ---------------------------- -------------------------------
01/26/88 10,000 01/26/88 9,600
03/31/88 1.29% 10,129 03/31/88 -3.14% 9,299
06/30/88 0.89% 10,219 06/30/88 -1.80% 9,131
09/30/88 1.72% 10,394 09/30/88 1.38% 9,257
12/31/88 0.94% 10,492 12/31/88 -0.52% 9,209
03/31/89 1.06% 10,602 03/31/89 4.17% 9,593
06/30/89 8.21% 11,473 06/30/89 5.92% 10,161
09/30/89 0.79% 11,563 09/30/89 -0.69% 10,090
12/31/89 3.71% 11,992 12/31/89 4.46% 10,540
03/31/90 -1.24% 11,843 03/31/90 -4.70% 10,045
06/30/90 3.43% 12,250 06/30/90 3.90% 10,437
09/30/90 0.78% 12,345 09/30/90 -3.61% 10,059
12/31/90 5.55% 13,030 12/31/90 8.50% 10,914
03/31/91 2.03% 13,294 03/31/91 1.19% 11,044
06/30/91 1.39% 13,479 06/30/91 -0.73% 10,964
09/30/91 5.69% 14,245 09/30/91 8.21% 11,864
12/31/91 5.37% 15,010 12/31/91 6.35% 12,618
03/31/92 -1.77% 14,745 03/31/92 -4.61% 12,037
06/30/92 3.92% 15,323 06/30/92 3.06% 12,405
09/30/92 5.04% 16,095 09/30/92 5.20% 13,050
12/31/92 -0.01% 16,092 12/31/92 1.21% 13,207
03/31/93 4.55% 16,824 03/31/93 5.91% 13,988
06/30/93 2.88% 17,309 06/30/93 2.66% 14,360
09/30/93 3.29% 17,879 09/30/93 3.55% 14,870
12/31/93 -0.42% 17,803 12/31/93 -2.13% 14,554
03/31/94 -2.97% 17,274 03/31/94 -4.41% 13,913
06/30/94 -1.14% 17,077 06/30/94 -3.24% 13,463
09/30/94 0.40% 17,146 09/30/94 -0.95% 13,335
12/31/94 0.36% 17,207 12/31/94 1.41% 13,523
03/31/95 4.66% 18,009 03/31/95 1.08% 13,670
The chart above represents performance of Class A shares only. The public
offering of Class C shares was terminated on June 8, 1994.
Past performance is not predictive of future performance.
Treasury Total Return Fund (Class A) - Average Annual Total
Returns
1 Year (5.68%)
5 Years 5.49%
Since inception* 4.44%
*The initial public offering of Class A shares commenced on January 26, 1988.
<PAGE>
2. Comparison of Change in Value of $10,000 Investment in the Utility Fund
(Class A) and the Standard & Poor's Utility Index
STANDARD & POOR'S UTILITY INDEX: UTILITY FUND (CLASS A):
- ------------------------------- ------------------------------
QTRLY QTRLY
DATE RETURN BALANCE DATE RETURN BALANCE
- ---------------------------- ------------------------------
08/16/89 10,000 08/16/89 9,600
09/30/89 2.43% 10,243 09/30/89 0.73% 9,671
12/31/89 11.42% 11,412 12/31/89 6.72% 10,320
03/31/90 -7.45% 10,562 03/31/90 -1.99% 10,115
06/30/90 0.53% 10,618 06/30/90 0.28% 10,144
09/30/90 -4.50% 10,140 09/30/90 -2.86% 9,854
12/31/90 9.67% 11,120 12/31/90 7.19% 10,562
03/31/91 2.22% 11,367 03/31/91 4.61% 11,049
06/30/91 -4.20% 10,889 06/30/91 0.60% 11,115
09/30/91 7.90% 11,749 09/30/91 9.26% 12,144
12/31/91 8.49% 12,746 12/31/91 6.72% 12,960
03/31/92 -9.34% 11,556 03/31/92 -4.66% 12,356
06/30/92 7.79% 12,457 06/30/92 4.44% 12,905
09/30/92 7.88% 13,438 09/30/92 3.82% 13,398
12/31/92 2.53% 13,777 12/31/92 4.14% 13,953
03/31/93 10.79% 15,264 03/31/93 6.84% 14,906
06/30/93 1.86% 15,548 06/30/93 1.50% 15,130
09/30/93 6.70% 16,589 09/30/93 2.82% 15,556
12/31/93 -5.76% 15,634 12/31/93 -3.11% 15,073
03/31/94 -8.50% 14,305 03/31/94 -3.20% 14,591
06/30/94 -0.00% 14,304 06/30/94 -0.83% 14,469
09/30/94 0.45% 14,369 09/30/94 1.32% 14,660
12/31/94 -0.10% 14,355 12/31/94 0.74% 14,769
03/31/95 6.93% 15,349 03/31/95 2.43% 15,128
The chart above represents performance of Class A shares only, which will vary
from the performance of Class C shares based on the difference in loads and fees
paid by shareholders in the different classes. Past performance is not
predictive of future performance.
Utility Fund - Average Annual Total Returns
Class A Shares Class C Shares
-------------- --------------
1 Year (0.47%) 3.00%
5 Years 7.50% N/A
Since inception* 7.63% (1.43%)
* The initial public offering of Class A shares commenced on August 15, 1989,
and the initial public offering of Class C shares commenced on August 2, 1993.
<PAGE>
3. Comparison of Change in Value of $10,000 Investment in the Equity Fund
(Class C) and the Standard & Poor's 500 Index.
STANDARD & POOR'S 500 INDEX: EQUITY FUND (CLASS C):
- --------------------------- ----------------------------
QTRLY QTRLY
DATE RETURN BALANCE DATE RETURN BALANCE
- ---------------------------- ----------------------------
06/07/93 10,000 06/07/93 10,000
06/30/93 0.78% 10,078 06/30/93 0.10% 10,010
09/30/93 2.58% 10,338 09/30/93 1.20% 10,130
12/31/93 2.32% 10,578 12/31/93 -1.34% 9,994
03/31/94 -3.79% 10,177 03/31/94 -2.85% 9,709
06/30/94 0.42% 10,220 06/30/94 -4.04% 9,317
09/30/94 4.88% 10,718 09/30/94 5.05% 9,787
12/31/94 -0.02% 10,716 12/31/94 -0.37% 9,751
03/31/95 9.74% 11,760 03/31/95 6.86% 10,419
The chart above represents performance of Class C shares only, which will vary
from the performance of Class A shares based on the differences in loads and
fees paid by shareholders in the different classes. Past performance is not
predictive of future performance.
Equity Fund - Average Annual Total Returns
1 Year Since Inception*
Class A Shares ............... 3.75% 0.61%
Class C Shares ............... 7.32% 2.29%
* The initial public offering of Class C shares commenced on June 7, 1993,
and the initial public offering of Class A shares commenced on August 2,
1993.
<PAGE>
4. Comparison of Change in Value of $10,000 Investment in the U.S. Government
Securities Fund and the Lehman Brothers Mortgage-Backed Securities Index
LEHMAN BROTHERS MBS INDEX: U.S. GOVERNMENT SECURITIES FUND
- ---------------------------- -------------------------------
QTRLY QTRLY
DATE RETURN BALANCE DATE RETURN BALANCE
- ---------------------------- -------------------------------
03/31/85 10,000 03/31/85 9,800
06/30/85 9.55% 10,955 06/30/85 7.95% 10,579
09/30/85 2.89% 11,272 09/30/85 2.94% 10,891
12/31/85 8.18% 12,194 12/31/85 6.11% 11,555
03/31/86 4.48% 12,740 03/31/86 3.59% 11,970
06/30/86 0.66% 12,824 06/30/86 -0.62% 11,895
09/30/86 3.93% 13,328 09/30/86 3.26% 12,283
12/31/86 3.78% 13,832 12/31/86 3.64% 12,729
03/31/87 2.21% 14,137 03/31/87 2.14% 13,002
06/30/87 -1.37% 13,944 06/30/87 -2.63% 12,660
09/30/87 -2.08% 13,654 09/30/87 -4.12% 12,139
12/31/87 5.65% 14,425 12/31/87 6.63% 12,944
03/31/88 4.28% 15,043 03/31/88 3.42% 13,386
06/30/88 1.67% 15,294 06/30/88 1.44% 13,578
09/30/88 2.37% 15,656 09/30/88 2.16% 13,871
12/31/88 0.18% 15,684 12/31/88 0.63% 13,959
03/31/89 1.24% 15,879 03/31/89 0.66% 14,051
06/30/89 7.76% 17,111 06/30/89 5.05% 14,760
09/30/89 1.65% 17,393 09/30/89 0.85% 14,885
12/31/89 4.00% 18,089 12/31/89 3.47% 15,401
03/31/90 0.13% 18,113 03/31/90 -0.92% 15,259
06/30/90 3.79% 18,799 06/30/90 2.97% 15,712
09/30/90 1.48% 19,077 09/30/90 0.94% 15,860
12/31/90 4.98% 20,027 12/31/90 4.92% 16,641
03/31/91 3.07% 20,642 03/31/91 2.12% 16,993
06/30/91 1.90% 21,034 06/30/91 1.78% 17,296
09/30/91 5.48% 22,187 09/30/91 4.57% 18,086
12/31/91 4.45% 23,174 12/31/91 3.95% 18,801
03/31/92 -0.86% 22,975 03/31/92 -1.06% 18,601
06/30/92 4.02% 23,899 06/30/92 3.97% 19,338
09/30/92 2.98% 24,611 09/30/92 3.09% 19,936
12/31/92 0.72% 24,788 12/31/92 0.13% 19,961
03/31/93 2.96% 25,522 03/31/93 4.10% 20,780
06/30/93 1.86% 25,997 06/30/93 2.61% 21,321
09/30/93 0.96% 26,246 09/30/93 1.38% 21,616
12/31/93 0.90% 26,482 12/31/93 0.23% 21,666
03/31/94 -2.32% 25,868 03/31/94 -3.80% 20,842
06/30/94 -0.56% 25,723 06/30/94 -3.94% 20,021
09/30/94 0.87% 25,947 09/30/94 -0.13% 19,995
12/31/94 0.43% 26,059 12/31/94 -0.15% 19,964
03/31/95 5.24% 27,424 03/31/95 4.46% 20,854
Past performance is not predictive of future performance.
U.S. Government Securities Fund - Average Annual Total Returns
1 Year ..................... (1.94%)
5 Years .................... 6.02%
10 Years .................... 7.63%
The initial public offering of shares commenced on June 4, 1984.
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<ARTICLE> 6
<CIK> 0000711080
<NAME> MIDWEST STRATEGIC TRUST
<SERIES>
<NUMBER> 4
<NAME> TREASURY TOTAL RETURN FUND
<S> <C>
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<OTHER-ITEMS-LIABILITIES> 495,559
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<NET-ASSETS> 25,973,758
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 1,756,899
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<EXPENSES-NET> 348,307
<NET-INVESTMENT-INCOME> 1,408,592
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<PER-SHARE-NII> 0.43
<PER-SHARE-GAIN-APPREC> (0.59)
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<TABLE> <S> <C>
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<CIK> 0000711080
<NAME> MIDWEST STRATEGIC TRUST
<SERIES>
<NUMBER> 51
<NAME> UTILITY FUND CLASS A
<S> <C>
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<FISCAL-YEAR-END> MAR-31-1995
<PERIOD-END> MAR-31-1995
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<INVESTMENTS-AT-VALUE> 43,687,275
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<ASSETS-OTHER> 4,265
<OTHER-ITEMS-ASSETS> 890
<TOTAL-ASSETS> 44,036,724
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 424,950
<TOTAL-LIABILITIES> 424,950
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 44,216,465
<SHARES-COMMON-STOCK> 3,821,010
<SHARES-COMMON-PRIOR> 3,839,159
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> (368,974)
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> (235,717)
<NET-ASSETS> 43,611,774
<DIVIDEND-INCOME> 1,491,702
<INTEREST-INCOME> 819,257
<OTHER-INCOME> 0
<EXPENSES-NET> 562,308
<NET-INVESTMENT-INCOME> 1,748,651
<REALIZED-GAINS-CURRENT> (330,519)
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<NET-CHANGE-FROM-OPS> 1,509,511
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<OVERDIST-NET-GAINS-PRIOR> 0
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<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 562,308
<AVERAGE-NET-ASSETS> 40,857,581
<PER-SHARE-NAV-BEGIN> 10.52
<PER-SHARE-NII> 0.43
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<PER-SHARE-NAV-END> 10.47
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</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<CIK> 0000711080
<NAME> MIDWEST STRATEGIC TRUST
<SERIES>
<NUMBER> 53
<NAME> UTILITY FUND CLASS C
<S> <C>
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<SHARES-COMMON-STOCK> 344,067
<SHARES-COMMON-PRIOR> 165,632
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<NET-INVESTMENT-INCOME> 1,748,651
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<SHARES-REINVESTED> 8,821
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<ACCUMULATED-NII-PRIOR> 0
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<OVERDIST-NET-GAINS-PRIOR> 0
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<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 562,308
<AVERAGE-NET-ASSETS> 2,583,980
<PER-SHARE-NAV-BEGIN> 10.51
<PER-SHARE-NII> 0.35
<PER-SHARE-GAIN-APPREC> (0.04)
<PER-SHARE-DIVIDEND> 0.36
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<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 10.46
<EXPENSE-RATIO> 2.00
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<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<CIK> 0000711080
<NAME> MIDWEST STRATEGIC TRUST
<SERIES>
<NUMBER> 71
<NAME> EQUITY FUND CLASS A
<S> <C>
<PERIOD-TYPE> 12-MOS
<FISCAL-YEAR-END> MAR-31-1995
<PERIOD-END> MAR-31-1995
<INVESTMENTS-AT-COST> 5,782,511
<INVESTMENTS-AT-VALUE> 6,044,113
<RECEIVABLES> 267,422
<ASSETS-OTHER> 859
<OTHER-ITEMS-ASSETS> 335
<TOTAL-ASSETS> 6,312,729
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<OTHER-ITEMS-LIABILITIES> 17,560
<TOTAL-LIABILITIES> 17,560
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<PAID-IN-CAPITAL-COMMON> 6,592,218
<SHARES-COMMON-STOCK> 436,763
<SHARES-COMMON-PRIOR> 361,218
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<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> (558,651)
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 261,602
<NET-ASSETS> 6,295,169
<DIVIDEND-INCOME> 130,316
<INTEREST-INCOME> 88,668
<OTHER-INCOME> 0
<EXPENSES-NET> 130,553
<NET-INVESTMENT-INCOME> 88,431
<REALIZED-GAINS-CURRENT> (558,651)
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<SHARES-REINVESTED> 6,598
<NET-CHANGE-IN-ASSETS> (2,908,199)
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 0
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
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<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 192,422
<AVERAGE-NET-ASSETS> 3,842,846
<PER-SHARE-NAV-BEGIN> 9.26
<PER-SHARE-NII> 0.15
<PER-SHARE-GAIN-APPREC> 0.59
<PER-SHARE-DIVIDEND> 0.16
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<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<CIK> 0000711080
<NAME> MIDWEST STRATEGIC TRUST
<SERIES>
<NUMBER> 73
<NAME> EQUITY FUND CLASS C
<S> <C>
<PERIOD-TYPE> 12-MOS
<FISCAL-YEAR-END> MAR-31-1995
<PERIOD-END> MAR-31-1995
<INVESTMENTS-AT-COST> 5,782,511
<INVESTMENTS-AT-VALUE> 6,044,113
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<OTHER-ITEMS-ASSETS> 335
<TOTAL-ASSETS> 6,312,729
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<OTHER-ITEMS-LIABILITIES> 17,560
<TOTAL-LIABILITIES> 17,560
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 6,592,218
<SHARES-COMMON-STOCK> 202,399
<SHARES-COMMON-PRIOR> 632,234
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<OVERDISTRIBUTION-NII> 0
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<OVERDISTRIBUTION-GAINS> 0
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<REALIZED-GAINS-CURRENT> (558,651)
<APPREC-INCREASE-CURRENT> 983,919
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<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 25,618
<DISTRIBUTIONS-OF-GAINS> 0
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<SHARES-REINVESTED> 2,646
<NET-CHANGE-IN-ASSETS> (2,908,199)
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 0
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<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 192,422
<AVERAGE-NET-ASSETS> 4,116,943
<PER-SHARE-NAV-BEGIN> 9.26
<PER-SHARE-NII> 0.10
<PER-SHARE-GAIN-APPREC> 0.57
<PER-SHARE-DIVIDEND> 0.07
<PER-SHARE-DISTRIBUTIONS> 0
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 9.86
<EXPENSE-RATIO> 2.00
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<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<CIK> 0000711080
<NAME> MIDWEST STRATEGIC TRUST
<SERIES>
<NUMBER> 3
<NAME> U.S. GOVERNMENT SECURITIES FUND
<S> <C>
<PERIOD-TYPE> 12-MOS
<FISCAL-YEAR-END> MAR-31-1995
<PERIOD-END> MAR-31-1995
<INVESTMENTS-AT-COST> 25,766,151
<INVESTMENTS-AT-VALUE> 26,194,490
<RECEIVABLES> 323,038
<ASSETS-OTHER> 3,615
<OTHER-ITEMS-ASSETS> 214
<TOTAL-ASSETS> 26,521,357
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 346,882
<TOTAL-LIABILITIES> 346,882
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 30,978,196
<SHARES-COMMON-STOCK> 2,837,768
<SHARES-COMMON-PRIOR> 4,110,002
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> (5,209,965)
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 406,244
<NET-ASSETS> 26,174,475
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 2,600,539
<OTHER-INCOME> 0
<EXPENSES-NET> 418,631
<NET-INVESTMENT-INCOME> 2,181,908
<REALIZED-GAINS-CURRENT> (5,097,610)
<APPREC-INCREASE-CURRENT> 2,526,800
<NET-CHANGE-FROM-OPS> (388,902)
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 2,181,908
<DISTRIBUTIONS-OF-GAINS> 128,416
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 456,445
<NUMBER-OF-SHARES-REDEEMED> 1,932,052
<SHARES-REINVESTED> 203,373
<NET-CHANGE-IN-ASSETS> (14,304,488)
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 16,061
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 261,660
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 418,631
<AVERAGE-NET-ASSETS> 34,864,067
<PER-SHARE-NAV-BEGIN> 9.85
<PER-SHARE-NII> 0.58
<PER-SHARE-GAIN-APPREC> (0.59)
<PER-SHARE-DIVIDEND> 0.58
<PER-SHARE-DISTRIBUTIONS> 0.04
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<PER-SHARE-NAV-END> 9.22
<EXPENSE-RATIO> 1.20
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
