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<PAGE> PAGE 2
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SIGNATURE ROBERT W. CURTIN
TITLE SECRETARY
<TABLE> <S> <C>
<ARTICLE> 6
<S> <C>
<PERIOD-TYPE> 12-MOS
<FISCAL-YEAR-END> DEC-31-1997
<PERIOD-END> DEC-31-1997
<INVESTMENTS-AT-COST> 36,923,323
<INVESTMENTS-AT-VALUE> 38,314,216
<RECEIVABLES> 566,044
<ASSETS-OTHER> 0
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 38,880,260
<PAYABLE-FOR-SECURITIES> 136,208
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 123,914
<TOTAL-LIABILITIES> 260,122
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 37,540,498
<SHARES-COMMON-STOCK> 3,413,896
<SHARES-COMMON-PRIOR> 3,314,206
<ACCUMULATED-NII-CURRENT> 2,217,642
<OVERDISTRIBUTION-NII> (2,614)
<ACCUMULATED-NET-GAINS> (313,867)
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 1,390,893
<NET-ASSETS> 38,620,138
<DIVIDEND-INCOME> 2,368,478
<INTEREST-INCOME> 546,468
<OTHER-INCOME> 0
<EXPENSES-NET> 697,304
<NET-INVESTMENT-INCOME> 2,217,642
<REALIZED-GAINS-CURRENT> 927,701
<APPREC-INCREASE-CURRENT> 804,642
<NET-CHANGE-FROM-OPS> 3,949,985
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> (2,215,429)
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 799,064
<NUMBER-OF-SHARES-REDEEMED> (850,768)
<SHARES-REINVESTED> 151,394
<NET-CHANGE-IN-ASSETS> 2,892,234
<ACCUMULATED-NII-PRIOR> 3,541
<ACCUMULATED-GAINS-PRIOR> (1,241,568)
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 364,175
<INTEREST-EXPENSE> 0
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<PER-SHARE-NAV-BEGIN> 10.78
<PER-SHARE-NII> 0.67
<PER-SHARE-GAIN-APPREC> 0.53
<PER-SHARE-DIVIDEND> (0.67)
<PER-SHARE-DISTRIBUTIONS> 0
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</TABLE>
Board of Directors
Maxus Income Fund
In planning and performing our audit of the financial statements of
Maxus Income Fund for the year ended December 31, 1997, we
considered its internal control structure, including procedures 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 the internal control structure.
The management of Maxus Income Fund is responsible for establishing
and maintaining an internal control structure. In fulfilling this
responsibility, estimates and judgments by management are required
to assess the expected benefits and related costs of internal
control structure policies and procedures. Two of the objectives
of an internal control structure are to provide management with
reasonable, but not absolute, assurance that assets are safeguarded
against loss from unauthorized use or disposition and transactions
are executed in accordance with management's authorization and
recorded properly to permit preparation of financial statements in
conformity with generally accepted accounting principles.
Because of inherent limitations in any internal control structure,
errors or irregularities may occur and may not be detected. Also,
projection of any evaluation of the structure 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 the internal control structure would not
necessarily disclose all matters in the internal control structure
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 the
specific internal control structure elements 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 the
internal control structure, including procedures for safeguarding
securities, that we consider to be material weaknesses as defined
above as of December 31, 1997.
This report is intended solely for the information and use of
management and the Securities and Exchange Commission.
McCurdy & Associates CPA's, Inc.
Westlake, Ohio
January 21, 1998
