March 1, 1996
MIDWEST STRATEGIC TRUST
U.S. Government Securities Fund
Treasury Total Return Fund
Supplement to Prospectus Dated August 1, 1995
Shares purchased at net asset value totaling $1 million or more, including
subsequent purchases made after the initial $1 million, are subject to a
contingent deferred sales load if a dealer's commission was paid by the
Adviser and the shares are redeemed within twelve months from the date of
purchase. The Adviser intends to pay a commission (equal to .50% of the
purchase amount of U.S. Government Securities Fund shares and .75% of the
purchase amount of Treasury Total Return Fund shares) to participating
unaffiliated dealers at the time the investor purchases shares at net asset
value in amounts totaling $1 million or more. In order to recover
commissions paid to unaffiliated dealers, the contingent deferred sales
load imposed on redemptions of such shares is retained by the Adviser. An
exchange from other Midwest Group funds will not qualify for payment of the
dealer's commission, unless such exchange is from a Midwest Group fund with
assets as to which a dealer's commission or similar payment has not been
previously paid. Purchases of shares made before October 1, 1995 are not
subject to the contingent deferred sales load. If a purchase of shares is
subject to the contingent deferred sales load, the investor will be so
notified on the confirmation statement for such purchase.
The contingent deferred sales load is imposed on such shares if an investor
redeems an amount which causes the current value of the investor's account
to fall below the total dollar amount of purchase payments subject to the
deferred sales load, except that no such charge is imposed if the shares
redeemed have been acquired through the reinvestment of dividends or
capital gains distributions or to the extent the amount redeemed is derived
from increases in the value of the account above the amount of purchase
payments subject to the deferred sales load.
Redemptions of such shares held for at least 12 months will not be subject
to the contingent deferred sales load and an exchange of such shares into
another Midwest Group fund is not treated as a redemption and will not
trigger the imposition of the contingent deferred sales load at the time of
such exchange. A fund will "tack" the period for which such shares being
exchanged were held onto the holding period of the acquired shares for
purposes of determining if a contingent deferred sales load is applicable
in the event that the acquired shares are redeemed following the exchange.
However, the period of time that the redemption proceeds of such shares are
held in a money market fund will not count toward the holding period for
determining whether a contingent deferred sales load is applicable. (See
"Exchange Privilege" in the Prospectus.)
The contingent deferred sales load on such shares is currently waived for
any partial or complete redemption following death or disability (as
defined in the Internal Revenue Code of 1986, as amended) of a shareholder
(including one who owns the shares with his or her spouse as a joint tenant
with rights of survivorship) from an account in which the deceased or
disabled is named. The Adviser may require documentation prior to waiver
of the charge, including death certificates, physicians' certificates,
etc.
EXPENSE INFORMATION
Shareholder Transaction Expenses in the section entitled "Expense
Information" on page 2 of the Prospectus have been revised as set forth
below to reflect the contingent deferred sales load for certain purchases
of shares:
U.S.
Government Treasury
Securities Total Return
Shareholder Transaction Expenses Fund Fund
Maximum Sales Load Imposed on Purchases
(as a percentage of offering price). . . . . . . 2% 4%
Maximum Contingent Deferred Sales Load
(as a percentage of original purchase price) . . None* None*
Sales Load Imposed on Reinvested Dividends . . . . None None
Exchange Fee . . . . . . . . . . . . . . . . . . . None None
Redemption Fee . . . . . . . . . . . . . . . . . . None** None**
* Purchases at net asset value of amounts totaling $1 million or more may
be subject to a contingent deferred sales load if a redemption occurred
within 12 months of purchase and a commission was paid by the Adviser
to a participating unaffiliated dealer. The contingent deferred sales
load is equal to .50% of the value of U.S. Government Securities Fund
shares subject to the load and .75% of the value of Treasury Total
Return Fund shares subject to the load.
** A wire transfer fee is charged by the Funds' Custodian in the case of
redemptions made by wire. Such fee is subject to change and is
currently $8. See "How to Redeem Shares."
HOW TO PURCHASE SHARES
The tables of sales loads in the section entitled "How to Purchase Shares"
on pages 11-12 have been revised as set forth below:
Shares of each Fund are purchased at the public offering price. The public
offering price of shares of the U.S. Government Securities Fund applicable
to investors whose accounts are opened after January 31, 1995 is the next
determined net asset value per share plus a sales load as shown in the
following table.
Dealer
Reallowance
Sales Load as % of: as % of
Public Net Public
Offering Amount Offering
Amount of Investment Price Invested Price
- -------------------- -------- -------- ---------
Less than $100,000 2.00% 2.04% 1.80%
$100,000 but less than $250,000 1.50 1.52 1.35
$250,000 but less than $500,000 1.00 1.01 .90
$500,000 but less than $1,000,000 .75 .76 .65
$1,000,000 or more None* None*
The public offering price of shares of the U.S. Government Securities Fund
applicable to investors whose accounts were opened prior to February 1,
1995 is the next determined net asset value per share plus a sales load as
shown in the following table.
Dealer
Reallowance
Sales Load as % of: as % of
Public Net Public
Offering Amount Offering
Amount of Investment Price Invested Price
- -------------------- -------- -------- ----------
Less than $500,000 1.00% 1.01% 1.00%
$500,000 but less than $1,000,000 .75 .76 .75
$1,000,000 or more None* None*
The public offering price of shares of the Treasury Total Return Fund is
the next determined net asset value per share plus a sales load as shown in
the following table.
Dealer
Reallowance
Sales Load as % of: as % of
Public Net Public
Offering Amount Offering
Amount of Investment Price Invested Price
- -------------------- -------- -------- ----------
Less than $100,000 4.00% 4.17% 3.60%
$100,000 but less than $250,000 3.50 3.63 3.30
$250,000 but less than $500,000 2.50 2.56 2.30
$500,000 but less than $1,000,000 2.00 2.04 1.80
$1,000,000 or more None* None*
* There is no front-end sales load on purchases of $1 million or more but
a contingent deferred sales load may apply if a commission was paid by
the Adviser to a participating unaffiliated dealer and the shares are
redeemed within twelve months from the date of purchase.
OPERATION OF THE FUNDS
The third paragraph in the section entitled "Operation of the Funds" on
page 18 has been revised as follows:
Scott D. Weston, Assistant Vice President-Investments of the Adviser, is
primarily responsible for managing the portfolio of the U.S. Government
Securities Fund. Mr. Weston has been employed by the Adviser since August
1992 and has been managing the Fund's portfolio since March 1996. Prior to
August 1992, Mr. Weston was employed by Adex International, Inc. as a Cost
Control Manager. Robert H. Leshner, Chairman of the Adviser, is primarily
responsible for managing the portfolio of the Treasury Total Return Fund.
Mr. Leshner founded the Adviser in 1974 and has been managing the Fund's
portfolio since January 1995.
