<PAGE> PAGE 1
000 A000000 09/30/96
000 C000000 0000882443
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007 C020100 SMITH BREEDEN EQUITY PLUS FUND
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011 A00AA01 FPS BROKER SERVICES, INC.
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<PAGE> PAGE 2
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<PAGE> PAGE 3
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<PAGE> PAGE 4
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<PAGE> PAGE 5
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<PAGE> PAGE 6
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<PAGE> PAGE 7
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<PAGE> PAGE 8
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<PAGE> PAGE 9
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SIGNATURE MARIANTHE S. MEWKILL
TITLE TREASURER
<TABLE> <S> <C>
<ARTICLE> 6
<SERIES>
<NUMBER> 1
<NAME> SMITH BREEDEN EQUITY PLUS FUND
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> MAR-31-1997
<PERIOD-END> SEP-30-1996
<INVESTMENTS-AT-COST> 7445525
<INVESTMENTS-AT-VALUE> 7487761
<RECEIVABLES> 39176
<ASSETS-OTHER> 157644
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 7684581
<PAYABLE-FOR-SECURITIES> 318747
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 50929
<TOTAL-LIABILITIES> 369676
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 6977379
<SHARES-COMMON-STOCK> 603141
<SHARES-COMMON-PRIOR> 388529
<ACCUMULATED-NII-CURRENT> 51935
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 181678
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 103913
<NET-ASSETS> 7314905
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 179234
<OTHER-INCOME> 0
<EXPENSES-NET> 24693
<NET-INVESTMENT-INCOME> 154541
<REALIZED-GAINS-CURRENT> 228555
<APPREC-INCREASE-CURRENT> 65639
<NET-CHANGE-FROM-OPS> 448735
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 115200
<DISTRIBUTIONS-OF-GAINS> 346002
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 204835
<NUMBER-OF-SHARES-REDEEMED> 26450
<SHARES-REINVESTED> 36227
<NET-CHANGE-IN-ASSETS> 2548371
<ACCUMULATED-NII-PRIOR> 12594
<ACCUMULATED-GAINS-PRIOR> 299125
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 19368
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 89590
<AVERAGE-NET-ASSETS> 5630558
<PER-SHARE-NAV-BEGIN> 12270
<PER-SHARE-NII> 0.294
<PER-SHARE-GAIN-APPREC> 0.627
<PER-SHARE-DIVIDEND> 0.240
<PER-SHARE-DISTRIBUTIONS> 0.821
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 12.130
<EXPENSE-RATIO> 0.89
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
Effective August 31, 1996, as described in the prospectus, the investment
objective of the Smith Breeden Equity Plus Fund (formerly the Smith
Breeden Market Tracking Fund) was changed to the following:
"to provide a total return exceeding the Standard & Poor's 500 Composite
Stock Price Index ("S&P 500 Index") without additional equity market risk."
Prior to that date, the Fund's objective prior to August 31, 1996, was
"to provide a total return approximating the S&P 500 Index." The change
in objective will not affect how the Fund is managed, and was
meant merely to clarify the Fund's investment goals.
On August 1, 1996, the Trustees amended the Agreement and Declaration
of Trust of Smith Breeden Trust. The amendment changed the designation of
the Smith Equity Plus Fund, a series of the Trust, from the "Smith Breeden
Market Tracking Fund".
