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SIGNATURE STEVEN J. PAGGIOLI
TITLE ASST. TREASURER
<TABLE> <S> <C>
<ARTICLE> 6
<CIK> 0000720498
<NAME> MATRIX/LMH VALUE FUND
<MULTIPLIER> 1
<CURRENCY> US DOLLARS
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> JUN-30-1998
<PERIOD-START> JUL-01-1997
<PERIOD-END> JUN-30-1998
<EXCHANGE-RATE> 1
<INVESTMENTS-AT-COST> 9248148
<INVESTMENTS-AT-VALUE> 10045251
<RECEIVABLES> 17106
<ASSETS-OTHER> 101632
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 10163989
<PAYABLE-FOR-SECURITIES> 139432
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 23880
<TOTAL-LIABILITIES> 163312
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 8991943
<SHARES-COMMON-STOCK> 303937
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<REALIZED-GAINS-CURRENT> 1559450
<APPREC-INCREASE-CURRENT> (528272)
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<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 49203
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 84762
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<ACCUMULATED-NII-PRIOR> 26186
<ACCUMULATED-GAINS-PRIOR> (1365764)
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</TABLE>
To the Shareholders and Board of
Directors of the Matrix/LMH Value Fund
In planning and performing our audit of the financial statements of
the Matrix/LMH Value Fund ("the Fund") for the year ended June 30,
1998, we considered its internal control, including control activities
for safeguarding securities, in order to determine our auditing
procedures for the purpose of expressing our opinion on the financial
statements and to comply with the requirements of Form N-SAR, not
to provide assurance on internal control.
The management of the Fund is responsible for establishing and
maintaining internal control. In fulfilling this responsibility,
estimates and judgments by management are required to assess the
expected benefits and related costs of control activities. Generally,
controls that are relevant to an audit pertain to the entity's objective
of preparing financial statements for external purposes that are fairly
presented in conformity with generally accepted accounting
principles. Those control activities include the safeguarding of assets
against unauthorized acquisition, use, or disposition.
Because of inherent limitations in any internal control, errors or
irregularities may occur and may not be detected. Also, projection of
any evaluation of internal control to future periods is subject to the
risk that it may become inadequate because of changes in conditions
or that the effectiveness of the design and operation may deteriorate.
Our consideration of internal control would not necessarily disclose
all matters in internal control that might be material weaknesses
under standards established by the American Institute of Certified
Public Accountants. A material weakness is a condition in which the
design or operation of any specific internal control components does
not reduce to a relatively low level the risk that errors or irregularities
in amounts that would be material in relation to the financial
statements being audited may occur and not be detected within a
timely period by employees in the normal course of performing their
assigned functions. However, we noted no matters involving internal
control, including controls over safeguarding securities, that we
consider to be material weaknesses as defined above as of June 30,
1998.
This report is intended solely for the information and use of
management and the Board of Directors of the Matrix/LMH Value
Fund and the Securities and Exchange Commission.
PricewaterhouseCoopers LLP
Minneapolis, Minnesota
August 28, 1998
