<PAGE> 1
[ASSET MANAGEMENT FUND, INC. LOGO]
ASSET MANAGEMENT FUND, INC.
SEMI-ANNUAL REPORT
APRIL 30, 1998
[ASSET MANAGEMENT FUND, INC. LOGO]
ASSET MANAGEMENT FUND, INC.
111 EAST WACKER DRIVE
CHICAGO, IL 60601
<PAGE> 2
CHAIRMAN'S MESSAGE
June 8, 1998
Dear AMF Shareholder:
The Directors and Officers of the Asset Management Fund, Inc. are pleased to
send the Semi-Annual Report to Shareholders for the six months ending April 30,
1998.
In the past six months rates have moved marginally lower with the majority of
the decline taking place in the ten to thirty year sector of the yield curve.
This further flattening of the yield curve, along with modestly lower rates,
fostered a significant acceleration of mortgage prepayments, especially in the
adjustable rate mortgage sector. Accordingly, the major focus of the AMF
portfolio management team over the last six months has been to devise and
effectuate strategies designed to offset the potentially negative impact of
rapid prepayments.
Over the past half-year the portfolios have, on average, been neutrally
positioned from a duration prospective, as there has been scant reward for
extending out farther along a flat yield curve. Although we remain bullish on
the market over the long term, current uncertainties will continue to temper our
enthusiasm for the ownership of longer duration securities until there is
greater clarity as to the near term direction of the economy. Simply put: will
the Fed tighten to quell the vigor of the domestic economy or will the turmoil
in the Far East be sufficient to produce the long anticipated "soft landing"
without Fed intervention?
In our experience, we cannot recall when the battle lines have been so clearly
drawn nor the risks of making the wrong decision so potentially impactual.
Flexibility is the key to success and, as always, the AMF management team will
endeavor to respond to changing market perceptions and conditions in a manner
that is consistent with the objectives of our shareholders.
We thank you for investing with the Asset Management Fund, Inc.
Sincerely,
RODGER D. SHAY
Rodger D. Shay
Chairman
<PAGE> 3
- --------------------------------------------------------------------------------
ASSET MANAGEMENT FUND, INC.
MONEY MARKET PORTFOLIO
STATEMENT OF NET ASSETS
APRIL 30, 1998 (UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PERCENTAGE
OF NET PAR
ASSETS MATURITY (000) VALUE
<S> <C> <C> <C> <C>
- ------------------------------------------------------------------------------------------------------
AGENCY OBLIGATIONS.................................... 97.2%
Federal Home Loan Bank* -- weekly reset
5.42% 05/05/98 $ 5,500 $ 5,493,463
5.54% 05/06/98 8,000 8,000,000
-----------
13,493,463
Freddie Mac -- discount notes
5.45% 05/01/98 21,000 21,000,000
Student Loan Marketing Association* -- weekly reset
5.55% 05/05/98 2,000 2,000,000
5.26% 05/05/98 8,275 8,272,275
5.26% 05/05/98 5,000 4,996,649
-----------
15,268,924
-----------
TOTAL AGENCY OBLIGATIONS
(Cost $49,762,387) 49,762,387
REPURCHASE AGREEMENT.................................. 2.8%
Lanston (Aubrey G.) & Co., Inc.
5.50% (Agreement dated 04/30/98, to be
repurchased at $1,448,221 on 05/01/98;
collateralized by $1,441,000 U.S. Treasury
Notes, 7.50%, due 10/31/99. The market value of
the collateral is $1,533,764.)
(Cost $1,448,000) 05/01/98 1,448 1,448,000
-----------
TOTAL INVESTMENTS IN SECURITIES....................... 100.0%
(Cost $51,210,387)** 51,210,387
OTHER ASSETS IN EXCESS OF LIABILITIES................. 0.0% 7,802
-----------
Net Assets applicable to 51,215,034 Shares of Common
Stock issued and outstanding........................ 100.0% $51,218,189
===========
Net Asset Value, offering and redemption price per
share ($51,218,189 / 51,215,034) $1.00
======
</TABLE>
- --------------------------------------------------------------------------------
* Variable Rate Obligations -- The interest rate shown is the rate at April 30,
1998 and the maturity date shown represents the next interest rate
readjustment date.
** Aggregate cost for Federal income tax purposes is identical.
See accompanying notes to financial statements.
1
<PAGE> 4
- --------------------------------------------------------------------------------
ASSET MANAGEMENT FUND, INC.
SHORT U.S. GOVERNMENT SECURITIES PORTFOLIO
STATEMENT OF NET ASSETS
APRIL 30, 1998 (UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PERCENTAGE
OF NET PAR
ASSETS MATURITY (000) VALUE
- --------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
FIXED RATE MORTGAGE-RELATED SECURITIES............. 9.6%
Pass Throughs
Freddie Mac
5.50% 05/01/03 $ 5,800 $ 5,702,125
6.00% 04/01/05 5,045 5,015,445
------------
TOTAL FIXED RATE MORTGAGE-
RELATED SECURITIES
(Cost $10,752,751) 10,717,570
U.S. TREASURY OBLIGATIONS.......................... 81.0%
U.S. Treasury Notes
6.000% 05/31/98 15,000 15,011,719
6.375% 05/15/99 7,000 7,055,781
7.125% 09/30/99 15,000 15,311,719
7.750% 11/30/99 15,000 15,482,813
6.375% 05/15/00 6,000 6,088,125
6.125% 07/31/00 5,000 5,053,906
6.000% 08/15/00 9,000 9,074,531
6.500% 08/31/01 8,000 8,203,750
6.625% 04/30/02 6,000 6,208,125
6.500% 05/31/02 3,000 3,092,344
------------
TOTAL U.S. TREASURY OBLIGATIONS
(Cost $89,006,769) 90,582,813
AGENCY OBLIGATION.................................. 4.5%
Freddie Mac -- discount notes
5.45%
(Cost $5,000,000) 05/01/98 5,000 5,000,000
- --------------------------------------------------------------------------------------------------------
See accompanying notes to financial statements.
</TABLE>
2
<PAGE> 5
- --------------------------------------------------------------------------------
ASSET MANAGEMENT FUND, INC.
SHORT U.S. GOVERNMENT SECURITIES PORTFOLIO (CONTINUED)
STATEMENT OF NET ASSETS
APRIL 30, 1998 (UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PERCENTAGE
OF NET PAR
ASSETS MATURITY (000) VALUE
- --------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
REPURCHASE AGREEMENT............................... 9.0%
Lanston (Aubrey G.) & Co., Inc.
5.50% (Agreement dated 04/30/98, to be
repurchased at $10,051,535 on 05/01/98;
collateralized by $9,298,000 U.S. Treasury
Notes, 8.50%, due 11/15/00. The market value
of the collateral is $10,290,215.)
(Cost $10,050,000) 05/01/98 $10,050 $ 10,050,000
------------
TOTAL INVESTMENTS IN SECURITIES.................... 104.1%
(Cost $114,809,520)* 116,350,383
LIABILITIES IN EXCESS OF OTHER ASSETS.............. (4.1%) (4,547,076)
------------
Net Assets applicable to 10,629,764 Shares of
Common Stock issued and outstanding.............. 100.0% $111,803,307
============
Net Asset Value, offering and redemption price per
share ($111,803,307 / 10,629,764) $10.52
============
</TABLE>
- --------------------------------------------------------------------------------
* Aggregate cost for Federal income tax purposes is $114,811,703. At April 30,
1998, the net and gross unrealized appreciation for tax purposes for all
securities is $1,538,680.
See accompanying notes to financial statements.
3
<PAGE> 6
- --------------------------------------------------------------------------------
ASSET MANAGEMENT FUND, INC.
ADJUSTABLE RATE MORTGAGE (ARM) PORTFOLIO
STATEMENT OF NET ASSETS
APRIL 30, 1998 (UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PERCENTAGE
OF NET PAR
ASSETS MATURITY (000) VALUE
- -------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
ADJUSTABLE RATE MORTGAGE-RELATED SECURITIES*......... 66.7%
Treasury Based ARMS.................................. 20.4%
Fannie Mae
7.72% 03/01/27 $13,830 $ 14,253,364
Freddie Mac
7.61% 05/01/23 10,294 10,629,013
7.80% 04/01/24 10,738 11,020,194
7.59% 03/01/25 13,552 13,958,696
Chase 1990-EA1
7.24% 11/25/20 13,076 13,145,960
Citicorp 1992-18 CL A-1
7.15% 10/25/22 38,885 40,124,754
CMC Securities Corp. 1993-2H A1
7.48% 09/25/23 17,589 17,732,038
Fund America 1993A CL A-1
7.50% 06/25/23 15,433 16,002,509
Housing Securities, Inc. 1992 SL-1 CL A-1
7.98% 05/25/16 23,291 24,549,751
Resolution Trust Corp. Series 1995-2 A-3
6.92% 05/25/29 19,171 19,613,837
------------
(Cost $178,254,184) 181,030,116
Certificates of Deposit Based ARMS................... 6.8%
Fannie Mae
7.19% 01/01/22 8,470 8,692,544
7.05% 10/01/22 8,966 9,201,000
7.22% 12/01/22 11,791 12,100,554
7.52% 02/01/23 5,918 6,119,233
7.21% 09/01/23 11,356 11,654,003
Sears Mortgage 1992-16
7.43% 10/25/22 12,361 12,484,843
------------
(Cost $59,359,736) 60,252,177
- -------------------------------------------------------------------------------------------------------
See accompanying notes to financial statements.
</TABLE>
4
<PAGE> 7
- --------------------------------------------------------------------------------
ASSET MANAGEMENT FUND, INC.
ADJUSTABLE RATE MORTGAGE (ARM) PORTFOLIO (CONTINUED)
STATEMENT OF NET ASSETS
APRIL 30, 1998 (UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PERCENTAGE
OF NET PAR
ASSETS MATURITY (000) VALUE
- -------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
London Interbank Offering Rate (LIBOR)
Based ARMS......................................... 24.6%
Fannie Mae
6.25% 06/25/19 $ 7,957 $ 8,002,030
6.05% 11/25/23 30,796 30,949,665
6.03% 05/18/28 10,516 10,538,503
Freddie Mac
7.81% 02/01/26 20,877 21,548,642
6.33% 02/15/26 11,625 11,726,625
7.68% 05/01/26 12,476 12,830,757
Donaldson, Lufkin, Jenrette Acceptance Corp. 1992-6
7.33% 07/25/22 36,427 37,348,969
Donaldson, Lufkin, Jenrette Acceptance Corp. 1992-9
7.21% 10/25/22 38,183 39,149,667
Donaldson, Lufkin, Jenrette Acceptance Corp. 1994-5
7.89% 04/25/24 6,315 6,403,621
Morserv Inc. 1996-2 1A1
6.53% 11/25/26 30,259 30,655,740
Residential Funding Mortgage Securities 1996-S23
6.15% 11/25/26 8,927 8,938,472
------------
(Cost $215,956,952) 218,092,691
Cost of Funds Index Based ARMS....................... 14.9%
Fannie Mae
5.94% 02/25/08 12,980 12,825,750
5.89% 06/25/12 4,000 3,940,000
5.77% 08/25/20 10,000 9,943,750
6.21% 07/01/28 10,982 11,036,898
6.24% 08/01/29 26,262 26,392,981
6.24% 10/01/32 9,930 9,988,492
6.20% 05/01/36 33,021 33,186,539
Freddie Mac
5.88% 02/15/24 9,245 9,129,335
Resolution Trust Corp. Series 1992-8 A-4
6.83% 03/25/21 15,275 15,284,513
------------
(Cost $131,402,954) 131,728,258
------------
TOTAL ADJUSTABLE RATE MORTGAGE-RELATED
SECURITIES
(Cost $584,973,826) 591,103,242
- -------------------------------------------------------------------------------------------------------
See accompanying notes to financial statements
</TABLE>
5
<PAGE> 8
- --------------------------------------------------------------------------------
ASSET MANAGEMENT FUND, INC.
ADJUSTABLE RATE MORTGAGE (ARM) PORTFOLIO (CONTINUED)
STATEMENT OF NET ASSETS
APRIL 30, 1998 (UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PERCENTAGE
OF NET PAR
ASSETS MATURITY (000) VALUE
- -------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
FIXED RATE MORTGAGE-RELATED SECURITIES............... 20.9%
Collateralized Mortgage Obligations
Fannie Mae
6.50% 10/25/04 $ 8,625 $ 8,642,725
5.75% 06/25/06 8,579 8,540,203
6.00% 12/25/15 10,000 9,979,688
6.50% 01/25/19 10,000 10,073,438
Freddie Mac
6.50% 01/15/04 17,300 17,340,547
6.25% 08/17/12 10,000 10,023,438
6.25% 02/15/13 21,524 21,550,524
6.00% 03/15/14 15,813 15,805,885
5.25% 01/15/16 5,573 5,552,540
ABN Amro Mortgage Corp. 1998-1 A3
7.00% 04/25/28 14,140 14,160,257
Prudential Home Mortgage Services 1996-4
6.50% 04/25/26 14,877 14,844,166
Prudential Home Mortgage Services 1996-6
6.00% 05/25/26 9,922 9,899,112
Residential Funding Mortgage Securities 1993-S36
6.25% 10/25/08 11,360 11,338,632
Residential Funding Mortgage Securities 1994-S9
6.50% 03/25/24 3,509 3,500,608
Pass Throughs
Freddie Mac
7.00% 03/01/12 8,890 9,059,719
8.00% 06/01/14 4,608 4,721,095
9.25% 01/01/17 5,609 6,044,567
10.50% 12/01/20 3,359 3,725,857
------------
TOTAL FIXED RATE MORTGAGE-RELATED
SECURITIES
(Cost $183,483,791) 184,803,001
- -------------------------------------------------------------------------------------------------------
See accompanying notes to financial statements.
</TABLE>
6
<PAGE> 9
- --------------------------------------------------------------------------------
ASSET MANAGEMENT FUND, INC.
ADJUSTABLE RATE MORTGAGE (ARM) PORTFOLIO (CONTINUED)
STATEMENT OF NET ASSETS
APRIL 30, 1998 (UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PERCENTAGE
OF NET PAR
ASSETS MATURITY (000) VALUE
- -------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
AGENCY OBLIGATIONS................................... 9.0%
Freddie Mac -- discount notes
5.45% 05/01/98 $70,000 $ 70,000,000
Federal Home Loan Bank
6.46% 09/26/03 5,000 4,991,406
6.34% 10/09/03 5,000 4,980,469
------------
(Cost $80,000,000) 79,971,875
REPURCHASE AGREEMENT................................. 3.1%
Lanston (Aubrey G.) & Co., Inc.
5.50% (Agreement dated 04/30/98, to be
repurchased at $27,012,126 on 05/01/98;
collateralized by $24,272,000 U.S. Treasury
Bonds, 7.125%, due 02/15/23. The market value of
the collateral is $27,990,452.)
(Cost $27,008,000) 05/01/98 27,008 27,008,000
------------
TOTAL INVESTMENTS IN SECURITIES...................... 99.7%
(Cost $875,465,617)** 882,886,118
OTHER ASSETS IN EXCESS OF LIABILITIES................ 0.3% 2,734,160
------------
Net Assets applicable to 88,900,793 Shares of Common
Stock issued and outstanding....................... 100.0% $885,620,278
============
Net Asset Value, offering and redemption price per
share ($885,620,278 / 88,900,793) $9.96
============
</TABLE>
- --------------------------------------------------------------------------------
* The interest rates shown are the rates at April 30, 1998.
** Aggregate cost for Federal income tax purposes is identical. At April 30,
1998, the net unrealized appreciation for tax purposes for all securities of
$7,420,501 consists of gross unrealized appreciation of $7,812,555 and gross
unrealized depreciation of ($392,054).
See accompanying notes to financial statements.
7
<PAGE> 10
- --------------------------------------------------------------------------------
ASSET MANAGEMENT FUND, INC.
INTERMEDIATE MORTGAGE SECURITIES PORTFOLIO
STATEMENT OF NET ASSETS
APRIL 30, 1998 (UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PERCENTAGE
OF NET PAR
ASSETS MATURITY (000) VALUE
- ------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
FIXED RATE MORTGAGE-RELATED SECURITIES................ 89.5%
Pass Throughs
Fannie Mae
6.50% 05/01/08 $ 8,177 $ 8,233,566
7.00% 04/01/12 2,282 2,313,070
-----------
10,546,636
Freddie Mac Gold
6.00%, due 04/01/05 5,046 5,015,696
7.50%, due 01/01/10 to 07/01/11 22,998 23,681,000
6.50%, due 02/01/12 to 10/01/12 25,367 25,502,252
6.00%, due 02/01/13 4,918 4,854,679
7.00%, due 02/01/13 4,884 4,977,299
6.00%, due 03/01/13 5,033 4,968,300
-----------
68,999,226
ABN Amro Mortgage Corp. 1998-1 IA3
7.00% 04/25/28 3,771 3,776,068
-----------
TOTAL FIXED RATE MORTGAGE-
RELATED SECURITIES
(Cost $81,769,216) 83,321,930
U.S. TREASURY OBLIGATION.............................. 3.4%
U.S. Treasury Note
6.625%
(Cost $3,088,165) 05/15/07 3,000 3,180,469
- ------------------------------------------------------------------------------------------------------
See accompanying notes to financial statements.
</TABLE>
8
<PAGE> 11
- --------------------------------------------------------------------------------
ASSET MANAGEMENT FUND, INC.
INTERMEDIATE MORTGAGE SECURITIES PORTFOLIO (CONTINUED)
STATEMENT OF NET ASSETS
APRIL 30, 1998 (UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PERCENTAGE
OF NET PAR
ASSETS MATURITY (000) VALUE
- ------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
REPURCHASE AGREEMENT.................................. 7.0%
Lanston (Aubrey G.) & Co., Inc.
5.50% (Agreement dated 04/30/98, to be
repurchased at $6,487,991 on 05/01/98;
collateralized by $6,568,000 U.S. Treasury Notes,
5.375%, due 01/31/00. The market value of the
collateral is $6,631,140.)
(Cost $6,487,000) 05/01/98 $ 6,487 $ 6,487,000
-----------
TOTAL INVESTMENTS IN SECURITIES....................... 99.9%
(Cost $91,344,381)* 92,989,399
OTHER ASSETS IN EXCESS OF LIABILITIES................. 0.1% 77,936
-----------
Net Assets applicable to 9,702,544 Shares of Common
Stock issued and outstanding........................ 100.0% $93,067,335
===========
Net Asset Value, offering and redemption price per
share ($93,067,335 / 9,702,544) $9.59
======
</TABLE>
- --------------------------------------------------------------------------------
* Aggregate cost for Federal income tax purposes is identical. At April 30,
1998, the net and gross unrealized appreciation for tax purposes for all
securities is $1,645,018.
See accompanying notes to financial statements.
9
<PAGE> 12
- --------------------------------------------------------------------------------
ASSET MANAGEMENT FUND, INC.
U.S. GOVERNMENT MORTGAGE SECURITIES PORTFOLIO
STATEMENT OF NET ASSETS
APRIL 30, 1998 (UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PERCENTAGE
OF NET PAR
ASSETS MATURITY (000) VALUE
- ------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
FIXED RATE MORTGAGE-RELATED SECURITIES................. 83.3%
Freddie Mac
6.00% 04/01/05 $10,091 $10,031,392
6.00% 03/01/13 4,917 4,853,853
6.00% 04/01/13 4,990 4,926,066
-----------
19,811,311
Government National Mortgage Association
9.00%, due 11/15/04 to 10/15/21 4,464 4,821,655
10.00%, due 03/15/19 649 716,174
7.50%, due 02/15/24 12,474 12,836,556
8.50%, due 06/15/24 2,435 2,568,445
7.00%, due 04/15/27 14,946 15,127,723
7.50%, due 06/15/27 4,784 4,914,107
-----------
40,984,660
-----------
TOTAL FIXED RATE MORTGAGE-RELATED SECURITIES
(Cost $58,404,354) 60,795,971
U.S. TREASURY OBLIGATIONS.............................. 4.3%
U.S. Treasury Note
6.250% 08/31/02 2,000 2,042,500
U.S. Treasury Bond
6.625% 02/15/07 1,000 1,082,969
-----------
TOTAL U. S. TREASURY OBLIGATIONS
(Cost $3,026,140) 3,125,469
- ------------------------------------------------------------------------------------------------------
See accompanying notes to financial statements.
</TABLE>
10
<PAGE> 13
- --------------------------------------------------------------------------------
ASSET MANAGEMENT FUND, INC.
U.S. GOVERNMENT MORTGAGE SECURITIES PORTFOLIO (CONTINUED)
STATEMENT OF NET ASSETS
APRIL 30, 1998 (UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PERCENTAGE
OF NET PAR
ASSETS MATURITY (000) VALUE
- ------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
AGENCY OBLIGATION...................................... 6.9%
Freddie Mac -- discount notes
5.45%
(Cost $5,000,000) 05/01/98 $ 5,000 $ 5,000,000
REPURCHASE AGREEMENT................................... 5.5%
Lanston (Aubrey G.) & Co., Inc.
5.50% (Agreement dated 04/30/98, to be
repurchased at $3,973,607 on 05/01/98;
collateralized by $3,988,000 U.S. Treasury Notes,
5.625%, due 12/31/99. The market value of the
collateral is $4,063,159.)
(Cost $3,973,000) 05/01/98 3,973 3,973,000
-----------
TOTAL INVESTMENTS IN SECURITIES........................ 100.0%
(Cost $70,403,494)* 72,894,440
LIABILITIES IN EXCESS OF OTHER ASSETS.................. 0.0% (8,439)
-----------
Net Assets applicable to 6,845,952 Shares of Common
Stock issued and outstanding......................... 100.0% $72,886,001
===========
Net Asset Value, offering and redemption price per
share ($72,886,001 / 6,845,952) $10.65
=======
</TABLE>
- --------------------------------------------------------------------------------
* Aggregate cost for Federal income tax purposes is identical. At April 30,
1998, the net and gross unrealized appreciation for tax purposes for all
securities is $2,490,946.
See accompanying notes to financial statements.
11
<PAGE> 14
- --------------------------------------------------------------------------------
ASSET MANAGEMENT FUND, INC.
STATEMENTS OF OPERATIONS
FOR THE SIX MONTHS ENDED APRIL 30, 1998 (UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
- ---------------------------------------------------------------------------------------------------------
U.S.
SHORT U.S. ADJUSTABLE INTERMEDIATE GOVERNMENT
MONEY GOVERNMENT RATE MORTGAGE MORTGAGE MORTGAGE
MARKET SECURITIES (ARM) SECURITIES SECURITIES
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
- ---------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
INVESTMENT INCOME:
Interest income.............. $1,520,977 $ 3,482,202 $25,507,437 $ 2,925,262 $2,204,240
---------- ----------- ----------- ----------- ----------
Operating expenses:
Investment advisory fee.... 41,031 136,037 1,809,144 150,862 75,882
Distribution fee........... 41,031 81,622 1,005,080 64,655 45,529
Administration fee......... 10,013 19,960 145,719 15,660 11,007
Custodian fee.............. 6,873 13,469 81,027 11,008 15,503
Directors' fees............ 2,276 5,150 29,784 3,490 2,310
Transfer agent fee......... 2,025 588 11,910 618 910
Legal...................... 1,393 3,693 16,979 1,822 1,302
Audit...................... 2,520 4,616 26,937 3,224 2,167
Other...................... 2,809 5,048 27,690 3,436 5,287
---------- ----------- ----------- ----------- ----------
109,971 270,183 3,154,270 254,775 159,897
Fee waivers................ (41,031) -0- (1,206,096) (43,103) -0-
---------- ----------- ----------- ----------- ----------
Total expenses.......... 68,940 270,183 1,948,174 211,672 159,897
---------- ----------- ----------- ----------- ----------
Net investment income... 1,452,037 3,212,019 23,559,263 2,713,590 2,044,343
---------- ----------- ----------- ----------- ----------
REALIZED AND UNREALIZED GAINS
(LOSSES) FROM INVESTMENT
ACTIVITIES:
Net realized gain (loss)..... 3,155 114,946 (510,611) 237,704 13,339
Net change in unrealized
appreciation/depreciation
of investments............. -0- (410,430) (2,037,953) (312,867) (134,773)
---------- ----------- ----------- ----------- ----------
Net gain (loss) on
investments........... 3,155 (295,484) (2,548,564) (75,163) (121,434)
---------- ----------- ----------- ----------- ----------
NET INCREASE IN NET ASSETS
RESULTING FROM OPERATIONS....... $1,455,192 $ 2,916,535 $21,010,699 $ 2,638,427 $1,922,909
========== =========== =========== =========== ==========
- ---------------------------------------------------------------------------------------------------------
See accompanying notes to financial statements.
</TABLE>
12
<PAGE> 15
- --------------------------------------------------------------------------------
ASSET MANAGEMENT FUND, INC.
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
- ----------------------------------------------------------------------------------------------------------
MONEY MARKET SHORT U.S. GOVERNMENT
-----------PORTFOLIO---------------------SECURITIES-PORTFOLIO------
SIX MONTHS ENDED YEAR ENDED SIX MONTHS ENDED YEAR ENDED
APRIL 30, 1998 OCTOBER 31, APRIL 30, 1998 OCTOBER 31,
(UNAUDITED) 1997 (UNAUDITED) 1997
- ----------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Increase (decrease) in net assets:
Operations:
Net investment income........... $ 1,452,037 $ 2,846,374 $ 3,212,019 $ 8,100,472
Net realized gain (loss)........ 3,155 -0- 114,946 278,080
Net change in unrealized
appreciation/depreciation of
investments................... -0- -0- (410,430) (885,159)
------------- ------------- ------------ ------------
Net increase in net assets resulting
from operations.................... 1,455,192 2,846,374 2,916,535 7,493,393
------------- ------------- ------------ ------------
Dividends paid to stockholders:
From net investment income...... (1,452,037) (2,846,374) (3,212,019) (8,100,472)
In excess of net investment
income........................ -0- -0- -0- -0-
From net realized capital
gains......................... -0- -0- -0- -0-
------------- ------------- ------------ ------------
Total dividends paid to
stockholders............... (1,452,037) (2,846,374) (3,212,019) (8,100,472)
------------- ------------- ------------ ------------
Capital share transactions:
Proceeds from sale of shares.... 276,316,042 486,765,190 13,560,010 19,652,214
Shares issued to stockholders in
reinvestment of dividends..... 1,199,813 2,693,813 2,067,433 5,022,539
Cost of shares repurchased...... (274,404,891) (510,838,655) (15,832,344) (88,655,596)
------------- ------------- ------------ ------------
Net increase (decrease) in net
assets from capital share
transactions............... 3,110,964 (21,379,652) (204,901) (63,980,843)
------------- ------------- ------------ ------------
Total increase (decrease) in
net assets................. 3,114,119 (21,379,652) (500,385) (64,587,922)
Net Assets:
Beginning of period................ 48,104,070 69,483,722 112,303,692 176,891,614
------------- ------------- ------------ ------------
End of period...................... $ 51,218,189 $ 48,104,070 $111,803,307 $112,303,692
============= ============= ============ ============
- ----------------------------------------------------------------------------------------------------------
</TABLE>
See accompanying notes to financial statements.
13
<PAGE> 16
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
- ---------------------------------------------------------------------------------------------------------
ADJUSTABLE RATE INTERMEDIATE MORTGAGE U.S. GOVERNMENT
MORTGAGE (ARM) PORTFOLIO SECURITIES PORTFOLIO MORTGAGE SECURITIES PORTFOLIO
- ------------------------------------ ------------------------------ -----------------------------
SIX MONTHS ENDED YEAR ENDED SIX MONTHS ENDED YEAR ENDED SIX MONTHS ENDED YEAR ENDED
APRIL 30, 1998 OCTOBER 31, APRIL 30, 1998 OCTOBER 31, APRIL 30, 1998 OCTOBER 31,
(UNAUDITED) 1997 (UNAUDITED) 1997 (UNAUDITED) 1997
- ---------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
$ 23,559,263 $ 43,701,797 $ 2,713,590 $ 5,583,888 $ 2,044,343 $ 3,842,799
(510,611) 184,116 237,704 595,694 13,339 (38,770)
(2,037,953) 2,696,420 (312,867) 172,901 (134,773) 853,710
------------- ------------- ----------- ------------- ----------- ------------
21,010,699 46,582,333 2,638,427 6,352,483 1,922,909 4,657,739
------------- ------------- ----------- ------------- ----------- ------------
(23,380,530) (43,701,797) (2,713,590) (5,583,888) (2,044,343) (3,842,799)
-0- -0- (278,437) -0- (123,034) -0-
-0- -0- -0- -0- -0- -0-
------------- ------------- ----------- ------------- ----------- ------------
(23,380,530) (43,701,797) (2,992,027) (5,583,888) (2,167,377) (3,842,799)
------------- ------------- ----------- ------------- ----------- ------------
332,046,822 369,577,662 14,611,707 3,564,826 21,075,000 1,000,000
13,547,327 22,808,370 1,368,799 2,421,791 1,069,901 1,756,929
(208,938,244) (439,948,534) (541,701) (21,062,258) (2,586,554) (7,266,534)
------------- ------------- ----------- ------------- ----------- ------------
136,655,905 (47,562,502) 15,438,805 (15,075,641) 19,558,347 (4,509,605)
------------- ------------- ----------- ------------- ----------- ------------
134,286,074 (44,681,966) 15,085,205 (14,307,046) 19,313,879 (3,694,665)
751,334,204 796,016,170 77,982,130 92,289,176 53,572,122 57,266,787
------------- ------------- ----------- ------------- ----------- ------------
$ 885,620,278 $ 751,334,204 $93,067,335 $ 77,982,130 $72,886,001 $ 53,572,122
============= ============= =========== ============= =========== ============
- ---------------------------------------------------------------------------------------------------------
See accompanying notes to financial statements.
</TABLE>
14
<PAGE> 17
- --------------------------------------------------------------------------------
ASSET MANAGEMENT FUND, INC.
MONEY MARKET PORTFOLIO
FINANCIAL HIGHLIGHTS
(FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SIX MONTHS
ENDED YEAR ENDED OCTOBER 31,
APRIL 30, 1998 --------------------------------------------------
(UNAUDITED) 1997 1996 1995 1994 1993
<S> <C> <C> <C> <C> <C> <C>
- -----------------------------------------------------------------------------------------------------------
Net asset value, beginning of
period............................. $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
------- ------- ------- ------- ------- --------
Income from investment operations:
- -------------------------------------
Net investment income.............. .0300 .0513 .0516 .0547 .0346 .0277
Net realized and unrealized gain
(loss) on investments........... -0- -0- -0- -0- -0- -0-
------- ------- ------- ------- ------- --------
Total from investment
operations................. .0300 .0513 .0516 .0547 .0346 .0277
------- ------- ------- ------- ------- --------
Less distributions:
- --------------------
Dividends paid to stockholders:
From net investment income...... (.0300) (.0513) (.0516) (.0547) (.0346) (.0277)
From net realized gains......... -0- -0- -0- -0- -0- -0-
------- ------- ------- ------- ------- --------
Total distributions to
stockholders............... (.0300) (.0513) (.0516) (.0547) (.0346) (.0277)
------- ------- ------- ------- ------- --------
Net asset value, end of period....... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
======= ======= ======= ======= ======= ========
Total return......................... 2.66% 5.25% 5.29% 5.60% 3.51% 2.80%
Ratios/Supplemental data:
- -----------------------------
Net assets, end of period (in
000's).......................... $51,218 $48,104 $69,484 $36,869 $82,969 $107,924
Ratio of expenses to average net
assets.......................... 0.25%(1)(2) 0.26(1) 0.24(1) 0.24%(1) 0.40%(1) 0.40%
Ratio of net investment income to
average net assets.............. 5.31%(2) 5.14% 5.15% 5.40% 3.34% 2.77%
- -----------------------------------------------------------------------------------------------------------
</TABLE>
(1) Without fee waivers for the Money Market Portfolio for the six months ended
April 30, 1998 and the years ended October 31, 1997, 1996, 1995, and 1994,
the ratios of expenses to average net assets would have been .40%
(annualized), .41%, .39%, .39%, and .42%, respectively.
(2) Annualized.
See accompanying notes to financial statements.
15
<PAGE> 18
- --------------------------------------------------------------------------------
ASSET MANAGEMENT FUND, INC.
SHORT U.S. GOVERNMENT SECURITIES PORTFOLIO
FINANCIAL HIGHLIGHTS
(FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SIX MONTHS
ENDED YEAR ENDED OCTOBER 31,
APRIL 30, 1998 ----------------------------------------------------
(UNAUDITED) 1997 1996 1995 1994 1993
- ----------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of
period............................. $ 10.55 $ 10.56 $ 10.68 $ 10.45 $ 10.89 $ 10.85
-------- -------- -------- -------- -------- --------
Income from investment operations:
- ----------------------------------
Net investment income............. .3084 .6273 .6370 .6746 .5396 .6155
Net realized and unrealized gain
(loss) on investments............ (.0300) (.0100) (.1200) .2300 (.4400) .0400
-------- -------- -------- -------- -------- --------
Total from investment
operations................ .2784 .6173 .5170 .9046 .0996 .6555
-------- -------- -------- -------- -------- --------
Less distributions:
- -------------------
Dividends paid to stockholders:
From net investment income..... (.3084) (.6273) (.6370) (.6746) (.5396) (.6155)
From net realized gains........ -0- -0- -0- -0- -0- -0-
-------- -------- -------- -------- -------- --------
Total distributions to
stockholders.............. (.3084) (.6273) (.6370) (.6746) (.5396) (.6155)
-------- -------- -------- -------- -------- --------
Net asset value, end of period...... $ 10.52 $ 10.55 $ 10.56 $ 10.68 $ 10.45 $ 10.89
======== ======== ======== ======== ======== ========
Total return........................ 2.67% 6.04% 4.99% 8.94% 0.95% 6.19%
Ratios/Supplemental data:
- -------------------------
Net assets, end of period
(in 000's)....................... $111,803 $112,304 $176,892 $167,343 $179,740 $235,705
Ratio of expenses to average net
assets........................... 0.50%(1) 0.50% 0.48% 0.49% 0.47% 0.48%
Ratio of net investment income to
average net assets............... 5.90%(1) 5.97% 6.02% 6.42% 5.04% 5.65%
Portfolio turnover rate........... 62% 75% 69% 112% 195% 110%
</TABLE>
- --------------------------------------------------------------------------------
(1) Annualized.
See accompanying notes to financial statements.
16
<PAGE> 19
- --------------------------------------------------------------------------------
ASSET MANAGEMENT FUND, INC.
ADJUSTABLE RATE MORTGAGE (ARM) PORTFOLIO
FINANCIAL HIGHLIGHTS
(FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SIX MONTHS
ENDED YEAR ENDED OCTOBER 31,
APRIL 30, 1998 ----------------------------------------------------------------
(UNAUDITED) 1997 1996 1995 1994 1993
- ------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of
period....................... $ 9.99 $ 9.95 $ 9.94 $ 9.78 $ 10.02 $ 9.98
-------- -------- ---------- ---------- ---------- ----------
Income from investment operations:
- ------------------------------------
Net investment income........ .2890 .6036 .5958 .6035 .4396 .4267
Net realized and unrealized
gain (loss) on
investments................ (.0320) .0400 .0100 .1600 (.2400) .0386
-------- -------- ---------- ---------- ---------- ----------
Total from investment
operations............ .2570 .6436 .6058 .7635 .1996 .4653
-------- -------- ---------- ---------- ---------- ----------
Less distributions:
- ------------------
Dividends paid to
stockholders:
From net investment
income................... (.2870) (.6036) (.5958) (.6035) (.4396) (.4253)
From net realized gains.... -0- -0- -0- -0- -0- -0-
-------- -------- ---------- ---------- ---------- ----------
Total distributions to
stockholders.......... (.2870) (.6036) (.5958) (.6035) (.4396) (.4253)
-------- -------- ---------- ---------- ---------- ----------
Net asset value, end of
period....................... $ 9.96 $ 9.99 $ 9.95 $ 9.94 $ 9.78 $ 10.02
======== ======== ========== ========== ========== ==========
Total return................... 2.54% 6.65% 6.27% 8.02% 2.04% 4.76%
Ratios/Supplemental data:
Net assets, end of period (in
000's)..................... $885,620 $751,334 $ 796,016 $ 891,538 $1,045,914 $1,572,311
Ratio of expenses to average
net assets................. 0.48%(1)(2) 0.49%(1) 0.47%(1) 0.48%(1) 0.47%(1) 0.46%(1)
Ratio of net investment
income to average net
assets..................... 5.86%(2) 6.07% 6.01% 6.12% 4.40% 4.34%
Portfolio turnover rate...... 32% 74% 60% 68% 65% 30%
</TABLE>
- --------------------------------------------------------------------------------
(1) Without fee waivers for the Adjustable Rate Mortgage (ARM) Portfolio for the
six months ended April 30, 1998 and the years ended October 31, 1997, 1996,
1995, 1994, and 1993, the ratios of expenses to average net assets would
have been .78% (annualized), .79% , .77%, .78%, .76%, and .76%,
respectively.
(2) Annualized.
See accompanying notes to financial statements.
17
<PAGE> 20
- --------------------------------------------------------------------------------
ASSET MANAGEMENT FUND, INC.
INTERMEDIATE MORTGAGE SECURITIES PORTFOLIO
FINANCIAL HIGHLIGHTS
(FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SIX MONTHS
ENDED YEAR ENDED OCTOBER 31,
APRIL 30, 1998 --------------------------------------------------
(UNAUDITED) 1997 1996 1995 1994 1993
- ---------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of
period............................ $ 9.62 $ 9.52 $ 9.68 $ 9.34 $ 10.00 $ 9.80
------- ------- ------- -------- -------- --------
Income from investment operations:
- ------------------------------------
Net investment income............. .3000 .6245 .6101 .6211 .5407 .5982
Net realized and unrealized gain
(loss) on investments............ .0041 .1000 (.1600) .3400 (.6600) .1987
------- ------- ------- -------- -------- --------
Total from investment
operations................... .3041 .7245 .4501 .9611 (.1193) .7969
------- ------- ------- -------- -------- --------
Less distributions:
- --------------------
Dividends paid to stockholders:
From net investment income..... (.3000) (.6245) (.6101) (.6211) (.5407) (.5969)
In excess of net investment
income........................ (.0341) -0- -0- -0- -0- -0-
From net realized gains........ -0- -0- -0- -0- -0- -0-
------- ------- ------- -------- -------- --------
Total distributions to
stockholders................ (.3341) (.6245) (.6101) (.6211) (.5407) (.5969)
------- ------- ------- -------- -------- --------
Net asset value, end of period...... $ 9.59 $ 9.62 $ 9.52 $ 9.68 $ 9.34 $ 10.00
======= ======= ======= ======== ======== ========
Total return........................ 3.21% 7.90% 4.82% 10.63% (1.18%) 8.33%
Ratios/Supplemental data:
- ------------------------------
Net assets, end of period (in
000's)......................... $93,067 $77,982 $92,289 $187,087 $213,427 $218,032
Ratio of expenses to average net
assets......................... 0.49%(1)(2) 0.49%(1) 0.44%(1) 0.38%(1) 0.39%(1) 0.37%(1)
Ratio of net investment income to
average net assets............. 6.30%(2) 6.58% 6.38% 6.55% 5.61% 5.94%
Portfolio turnover rate........... 85% 120% 133% 133% 358% 106%
- ---------------------------------------------------------------------------------------------------------
</TABLE>
(1) Without fee waivers for the Intermediate Mortgage Securities Portfolio for
the six months ended April 30, 1998 and the years ended October 31, 1997,
1996, 1995, 1994, and 1993, the ratios of expenses to average net assets
would have been .59% (annualized), .59%, .58%, .58%, .59%, and .57%,
respectively.
(2) Annualized.
See accompanying notes to financial statements.
18
<PAGE> 21
- --------------------------------------------------------------------------------
ASSET MANAGEMENT FUND, INC.
U.S. GOVERNMENT MORTGAGE SECURITIES PORTFOLIO
FINANCIAL HIGHLIGHTS
(FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SIX MONTHS
ENDED YEAR ENDED OCTOBER 31,
APRIL 30, 1998 -----------------------------------------------
(UNAUDITED) 1997 1996 1995 1994 1993
- ----------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period..... $ 10.67 $ 10.51 $ 10.68 $ 10.23 $ 11.28 $ 11.26
------- ------- ------- ------- ------- -------
Income from investment operations:
Net investment income.................. .3567 .7344 .7479 .7703 .7296 .8306
Net realized and unrealized gain (loss)
on investments........................ .0057 .1600 (.1700) .4500 (.9300) .0195
------- ------- ------- ------- ------- -------
Total from investment
operations..................... .3624 .8944 .5779 1.2203 (.2004) .8501
------- ------- ------- ------- ------- -------
Less distributions:
Dividends paid to stockholders:
From net investment income.......... (.3567) (.7344) (.7479) (.7703) (.7296) (.8301)
In excess of net investment
income............................ (.0257) -0- -0- -0- -0- -0-
From net realized gains............. -0- -0- -0- -0- (.1200) -0-
------- ------- ------- ------- ------- -------
Total distributions to
stockholders................... (.3824) (.7344) (.7479) (.7703) (.8496) (.8301)
------- ------- ------- ------- ------- -------
Net asset value, end of period........... $ 10.65 $ 10.67 $ 10.51 $ 10.68 $ 10.23 $ 11.28
======= ======= ======= ======= ======= =======
Total return............................. 3.45% 8.87% 5.63% 12.37% (1.82%) 7.76%
Ratios/Supplemental data:
Net assets, end of period (in 000's)... $72,886 $53,572 $57,267 $62,258 $60,613 $92,994
Ratio of expenses to average net
assets.............................. 0.53%(1) 0.53% 0.52% 0.53% 0.51% 0.51%
Ratio of net investment income to
average net assets.................... 6.74%(1) 7.01% 7.10% 7.39% 6.81% 7.32%
Portfolio turnover rate................ 99% 135% 165% 177% 376% 187%
</TABLE>
- --------------------------------------------------------------------------------
(1) Annualized.
See accompanying notes to financial statements.
19
<PAGE> 22
- --------------------------------------------------------------------------------
ASSET MANAGEMENT FUND, INC.
NOTES TO FINANCIAL STATEMENTS
APRIL 30, 1998 (UNAUDITED)
- --------------------------------------------------------------------------------
Asset Management Fund, Inc. (the "Fund") consists of five separate portfolios,
the Money Market Portfolio, the Short U.S. Government Securities Portfolio, the
Adjustable Rate Mortgage (ARM) Portfolio, the Intermediate Mortgage Securities
Portfolio and the U.S. Government Mortgage Securities Portfolio.
A. The Fund is registered under the Investment Company Act of 1940, as amended,
as a diversified, open-end management company. Significant accounting policies
are as follows:
SECURITY VALUATION
Money Market Portfolio:
Portfolio securities are valued under the amortized cost method, which
approximates current market value. Under this method, securities are valued at
cost when purchased and thereafter a constant proportionate amortization of any
discount or premium is recorded until maturity of the security. The Portfolio
seeks to maintain net asset value per share at $1.00.
Short U.S. Government Securities Portfolio, Adjustable Rate Mortgage (ARM)
Portfolio, Intermediate Mortgage Securities Portfolio, and U.S. Government
Mortgage Securities Portfolio:
Portfolio securities are valued at the mean between the most recent bid and
asked prices, which may be furnished by a pricing service, at prices provided
directly by market makers, or using matrix pricing methods. Portfolio securities
for which market quotations are not readily available are valued at fair value
using methods determined in good faith by the Board of Directors. Short-term
instruments maturing within 60 days of the valuation date are valued based upon
their amortized cost.
REPURCHASE AGREEMENTS
Eligible portfolio investments may be purchased from financial institutions,
such as banks and non-bank dealers, subject to the seller's agreement to
repurchase them at an agreed upon date and price. The seller will be required on
a daily basis to maintain the value of the securities subject to the agreements
at not less than the repurchase price. Repurchase agreements are conditioned
upon the collateral being deposited under the Federal Reserve book-entry system
or with the Fund's custodian.
DIVIDENDS TO SHAREHOLDERS
Dividends from net investment income are declared daily and paid monthly. Net
short-term and long-term capital gains, if any, are declared and paid annually.
FEDERAL TAXES
No provision is made for Federal taxes as it is each Portfolio's intention to
continue to qualify as a regulated investment company and to make the requisite
distributions to the stockholders, which will be sufficient to relieve each
portfolio from all or substantially all Federal income and excise taxes.
MANAGEMENT ESTIMATES
The preparation of financial statements in conformity with generally accepted
accounting principles requires management to make estimates and assumptions that
affect the reported amounts of assets and liabilities at the date of the
financial statements and the reported amounts of revenues and expenses during
the reporting period. Actual results could differ from these estimates.
OTHER
Investment transactions are accounted for on the trade date and the cost of
investments sold is determined by use of the specific identification method for
both financial reporting and income tax purposes.
B. Effective December 8, 1997, Shay Assets Management, Inc. (Adviser) (SAMI)
became the
20
<PAGE> 23
- --------------------------------------------------------------------------------
ASSET MANAGEMENT FUND, INC.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
APRIL 30, 1998 (UNAUDITED)
- --------------------------------------------------------------------------------
investment adviser to the Fund. The Adviser is a wholly-owned subsidiary of Shay
Investment Services, Inc. (SISI), both of which are controlled by Rodger D.
Shay, the Chairman of the Board of Directors of the Fund. Prior to December 8,
1997, the investment adviser was Shay Assets Management Co. (SAMC), a general
partnership that consisted of two general partners, SAMI and ACB Assets
Management, Inc. (ACBAM). ACBAM is an indirect wholly-owned subsidiary of
America's Community Bankers.
On December 8, 1997, SAMI purchased ACBAM's 50% interest in SAMC; SAMC was
dissolved and its business (including investment advisory functions to the
Fund), assets, and liabilities were transferred to SAMI. In anticipation of this
transaction, the shareholders of the Fund approved a new investment advisory
agreement between the Fund and the Adviser on October 31, 1997. The terms of the
new investment advisory agreement, including the duties, obligations, and
compensation of the investment adviser, are substantially the same as those in
the prior investment advisory agreement between the Fund and SAMC.
SAMI and SISI paid all of the costs incurred by the Fund in connection with
the above transaction, including preparation and distribution of proxy materials
to shareholders, meetings of the Fund's shareholders and Board of Directors,
legal fees, and other fees and expenses.
As compensation for investment advisory services, the Fund pays an investment
advisory fee monthly based upon an annual percentage of the average daily net
assets of each Portfolio as follows:
The fee rate for the Money Market Portfolio is .15% of the first $500 million,
.125% of the next $500 million, and .10% of such net assets in excess of $1
billion. The Adviser voluntarily waived 100% of its fee for the six months ended
April 30, 1998. The waiver amounted to $41,031.
The fee rate for each of the Short U.S. Government Securities Portfolio and
the U.S. Government Mortgage Securities Portfolio, computed separately, is .25%
of the first $500 million, .175% of the next $500 million, .125% of the next
$500 million, and .10% of such net assets in excess of $1.5 billion.
The fee rate for the Adjustable Rate Mortgage (ARM) Portfolio is .45% of the
first $3 billion, .35% of the next $2 billion, and .25% of such net assets in
excess of $5 billion. The Adviser voluntarily waived approximately 44% of its
fee for the six months ended April 30, 1998. The waiver amounted to $804,064.
The fee rate for the Intermediate Mortgage Securities Portfolio is .35% of the
first $500 million, .275% of the next $500 million, .20% of the next $500
million, and .10% of such net assets in excess of $1.5 billion. The Adviser
voluntarily waived approximately 29% of its fee for the six months ended April
30, 1998. The waiver amounted to $43,103.
The Adviser has agreed to reduce or waive (but not below zero) its advisory
fees charged to each Portfolio, except the Adjustable Rate Mortgage (ARM)
Portfolio, to the extent that the daily ratio of operating expenses to
average daily net assets of each Portfolio exceeds .75%.
Effective December 8, 1997, Shay Financial Services, Inc. (Distributor) (SFSI)
became the distributor to the Fund. The Distributor is a wholly-owned subsidiary
of SISI, both of which are controlled by Rodger D. Shay, the Chairman of the
Board of Directors of the Fund. Prior to December 8, 1997, the distributor was
Shay Financial Services Co. (SFSC), a general partnership that consisted of two
general partners, SFSI and ACB Securities, Inc. (ACBS). ACBS is an indirect
wholly-owned subsidiary of America's Community Bankers.
21
<PAGE> 24
- --------------------------------------------------------------------------------
ASSET MANAGEMENT FUND, INC.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
APRIL 30, 1998 (UNAUDITED)
- --------------------------------------------------------------------------------
On December 8, 1997, SFSI purchased ACBS' 50% interest in SFSC; SFSC was
dissolved and its business (including distribution functions to the Fund),
assets, and liabilities were transferred to SFSI.
As compensation for distribution services, the Fund pays a distribution fee
monthly based upon an annual percentage of the average daily net assets of each
portfolio as follows:
The fee rate for each of the Money Market Portfolio and Short U.S. Government
Securities Portfolio is based upon an annual percentage of the combined average
daily net assets of both portfolios and is as follows: .15% of the first $500
million, .125% of the next $500 million, .10% of the next $1 billion, and .075%
of such combined net assets in excess of $2 billion.
The fee rate for the Adjustable Rate Mortgage (ARM) Portfolio is .25% of
average daily net assets. The Distributor voluntarily waived approximately 40%
of its fee for the six months ended April 30, 1998. The waiver amounted to
$402,032.
The fee rate for each of the Intermediate Mortgage Securities Portfolio and
the U.S. Government Mortgage Securities Portfolio, computed separately, is as
follows: .15% of the first 500 million, .125% of the next $500 million, .10% of
the next $500 million, and .075% of such net assets in excess of $1.5 billion.
- --------------------------------------------------------------------------------
C. The Fund is authorized to issue 6 billion shares of common stock, par value
$.001 per share, of which 4 billion shares are of the Money Market Portfolio and
500 million shares are of each of the other four Portfolios. On April 30, 1998,
six stockholders held approximately 45% of the outstanding shares of the Money
Market Portfolio, four stockholders held approximately 28% of the outstanding
shares of the Short U.S. Government Securities Portfolio, one stockholder held
approximately 6% of the outstanding shares of the Adjustable Rate Mortgage (ARM)
Portfolio, seven stockholders held approximately 67% of the outstanding shares
the Intermediate Mortgage Securities Portfolio, and six stockholders held
approximately 72% of the outstanding shares of the U.S. Government Mortgage
Securities Portfolio. As of April 30, 1998, one of the directors had, through
the institutions he serves as officer, voting power over approximately two
percent of the shares of the Money Market Portfolio. Transactions in shares of
the Fund for the six months ended April 30, 1998 and the year ended October 31,
1997 were as follows:
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MONEY MARKET SHORT U.S. GOVERNMENT
PORTFOLIO SECURITIES PORTFOLIO
--------------------------------------------------------------------------
SIX MONTHS ENDED SIX MONTHS ENDED
APRIL 30, 1998 YEAR ENDED APRIL 30, 1998 YEAR ENDED
(UNAUDITED) OCTOBER 31, 1997 (UNAUDITED) OCTOBER 31, 1997
- --------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Sale of shares..................... 276,316,042 486,765,190 1,286,550 1,867,392
Shares issued to stockholders in
reinvestment of dividends........ 1,199,813 2,693,813 196,184 478,395
Shares repurchased................. (274,404,891) (510,838,655) (1,502,224) (8,454,686)
------------ ------------ ---------- ----------
Net increase (decrease)............ 3,110,964 (21,379,652) (19,490) (6,108,899)
Shares outstanding:
Beginning of period.............. 48,104,070 69,483,722 10,649,254 16,758,153
------------ ------------ ---------- ----------
End of period.................... 51,215,034 48,104,070 10,629,764 10,649,254
============ ============ ========== ==========
</TABLE>
- --------------------------------------------------------------------------------
22
<PAGE> 25
- --------------------------------------------------------------------------------
ASSET MANAGEMENT FUND, INC.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
APRIL 30, 1998 (UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
ADJUSTABLE RATE MORTGAGE INTERMEDIATE MORTGAGE
(ARM) PORTFOLIO SECURITIES PORTFOLIO
--------------------------------------------------------------------------
SIX MONTHS ENDED SIX MONTHS ENDED
APRIL 30, 1998 YEAR ENDED APRIL 30, 1998 YEAR ENDED
(UNAUDITED) OCTOBER 31, 1997 (UNAUDITED) OCTOBER 31, 1997
- --------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Sale of shares..................... 33,267,664 37,029,209 1,510,858 374,952
Shares issued to stockholders in
reinvestment of dividends........ 1,357,699 2,288,259 142,481 255,226
Shares repurchased................. (20,931,870) (44,121,340) (56,019) (2,216,650)
----------- ----------- --------- ----------
Net increase (decrease)............ 13,693,493 (4,803,872) 1,597,320 (1,586,472)
Shares outstanding:
Beginning of period.............. 75,207,300 80,011,172 8,105,224 9,691,696
----------- ----------- --------- ----------
End of period.................... 88,900,793 75,207,300 9,702,544 8,105,224
=========== =========== ========= ==========
</TABLE>
================================================================================
<TABLE>
<CAPTION>
U.S. GOVERNMENT MORTGAGE
SECURITIES PORTFOLIO
------------------------------------
SIX MONTHS ENDED
APRIL 30, 1998 YEAR ENDED
(UNAUDITED) OCTOBER 31, 1997
- --------------------------------------------------------------------------------------------------
<S> <C> <C>
Sale of shares.............................................. 1,966,579 94,340
Shares issued to stockholders in reinvestment of
dividends................................................. 100,337 167,732
Shares repurchased.......................................... (241,815) (690,534)
--------- ---------
Net increase (decrease)..................................... 1,825,101 (428,462)
Shares outstanding:
Beginning of period....................................... 5,020,851 5,449,313
--------- ---------
End of period............................................. 6,845,952 5,020,851
========= =========
- --------------------------------------------------------------------------------------------------
</TABLE>
- --------------------------------------------------------------------------------
D. At April 30, 1998, NET ASSETS consisted of the following:
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------------------------------
SHORT U.S. INTERMEDIATE U.S. GOVERNMENT
GOVERNMENT ADJUSTABLE RATE MORTGAGE MORTGAGE
MONEY MARKET SECURITIES MORTGAGE SECURITIES SECURITIES
PORTFOLIO PORTFOLIO (ARM) PORTFOLIO PORTFOLIO PORTFOLIO
- --------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Capital paid-in......... $51,215,034 $121,788,535 $904,243,421 $106,489,285 $74,500,027
Accumulated net realized
gains (losses)........ 3,155 (11,526,091) (26,222,377) (14,788,531) (3,981,938)
Undistributed net
investment income..... -0- -0- 178,733 -0- -0-
Accumulated
distributions in
excess of net
investment income..... -0- -0- -0- (278,437) (123,034)
Net unrealized
appreciation of
investments........... -0- 1,540,863 7,420,501 1,645,018 2,490,946
----------- ------------ ------------ ------------ -----------
$51,218,189 $111,803,307 $885,620,278 $ 93,067,335 $72,886,001
=========== ============ ============ ============ ===========
- --------------------------------------------------------------------------------------------------------
</TABLE>
23
<PAGE> 26
- --------------------------------------------------------------------------------
ASSET MANAGEMENT FUND, INC.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
APRIL 30, 1998 (UNAUDITED)
- --------------------------------------------------------------------------------
E. For tax purposes at October 31, 1997, the Short U.S. Government Securities
Portfolio had a capital loss carryforward of $11,638,854, of which $4,590,496
expires in 1998, $4,615,249 expires in 2002, $466,298 expires in 2003, and
$1,966,811 expires in 2004. The Adjustable Rate Mortgage (ARM) Portfolio had a
capital loss carryforward of $22,609,346, of which $236,741 expires in 2000,
$5,932,937 expires in 2001, $10,944,856 expires in 2002, $4,674,894 expires in
2003, and $819,918 expires in 2004.
The Intermediate Mortgage Securities Portfolio had a capital loss carryforward
of $15,188,284, of which $1,415,174 expires in 1998, $9,526,290 expires in 2002,
$1,932,691 expires in 2003, and $2,314,129 expires in 2004. The U.S. Government
Mortgage Securities Portfolio had a capital loss carryforward of $4,221,956, of
which $3,336,057 expires in 2002, $731,254 expires in 2003, $29,820 expires in
2004, and $124,825 expires in 2005. All losses are available to offset future
realized capital gains, if any.
- --------------------------------------------------------------------------------
F. For the six months ended April 30, 1998, purchases and proceeds from
sales/maturities of securities, other than short-term investments, were as
follows:
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
U.S.
SHORT U.S. ADJUSTABLE INTERMEDIATE GOVERNMENT
GOVERNMENT RATE MORTGAGE MORTGAGE MORTGAGE
SECURITIES (ARM) SECURITIES SECURITIES
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
- ----------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Purchases:
U.S. Government obligations............. $30,750,289 $245,626,264 $45,826,085 $42,437,738
Other securities........................ -0- 71,272,885 3,817,812 -0-
----------- ------------ ----------- -----------
Total purchases...................... $30,750,289 $316,899,149 $49,643,897 $42,437,738
=========== ============ =========== ===========
Sales and maturities:
U.S. Government obligations............. $35,130,313 $113,962,570 $33,496,250 $27,510,547
Other securities........................ -0- 4,510,047 -0- -0-
----------- ------------ ----------- -----------
Total sales and maturities........... $35,130,313 $118,472,617 $33,496,250 $27,510,547
=========== ============ =========== ===========
- ----------------------------------------------------------------------------------------------------
</TABLE>
24
<PAGE> 27
- --------------------------------------------------------------------------------
ASSET MANAGEMENT FUND, INC.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
APRIL 30, 1998 (UNAUDITED)
- --------------------------------------------------------------------------------
G. A Special Meeting of the Stockholders of the Fund was held on October 31,
1997, at which the stockholders voted on three proposals. The proposals and the
results of voting are set forth below.
The first proposal concerned the election of six directors to the Board of
Directors. The results of voting were as follows:
<TABLE>
<CAPTION>
FOR AGAINST ABSTAINING
---------- --------- ----------
<S> <C> <C> <C>
Richard M. Amis.................................. 99,133,398 5,621,821 82,337
Arthur G. De Russo............................... 97,519,024 7,236,195 82,337
David F. Holland................................. 99,133,398 5,621,821 82,337
Leon T. Kendall.................................. 99,133,398 5,621,821 82,337
Gerald J. Levy................................... 99,133,398 5,621,821 82,337
Rodger D. Shay................................... 99,133,398 5,621,821 82,337
</TABLE>
Mr. Kendall resigned from the Board of Directors in December 1997.
The second proposal concerned the approval of a new investment advisory
agreement between the Fund and SAMI. The results of voting for the proposal were
101,479,344 for, 1,297,616 against, and 2,060,596 abstaining.
The third proposal concerned the ratification of the selection of Coopers &
Lybrand L.L.P. as independent accountants of the Fund for the fiscal year ending
October 31, 1997. The results of voting for the proposal were 103,667,600 for,
655,670 against, and 514,286 abstaining.
25
<PAGE> 28
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
GENERAL INFORMATION
- --------------------------------------------------------------------------------
For general information about any of the Portfolios offered by Asset Management
Fund, Inc., including fees and expenses, please send for a prospectus and read
it carefully before you invest.
SHAY FINANCIAL SERVICES, INC.
111 East Wacker Drive/Chicago, IL 60601
800-527-3713
1000 Brickell Avenue/Miami, FL 33131
800-327-6190
315 Post Road West/Westport, CT 06880
800-456-8232
5605 North MacArthur Blvd./Irving, TX 75038
800-442-9825
101 Bradford Road/Wexford, PA 15090
800-224-5177
350 Springfield Avenue/Summit, NJ 07091
800-553-6159
- --------------------------------------------------------------------------------
ACCOUNT INFORMATION
- --------------------------------------------------------------------------------
To obtain performance data and place purchase orders, call toll free
800-527-3713.
<PAGE> 29
NOTES
<PAGE> 30
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
DISTRIBUTOR
Shay Financial Services, Inc.
111 East Wacker Drive
Chicago, IL 60601
INVESTMENT ADVISER
Shay Assets Management, Inc.
111 East Wacker Drive
Chicago, IL 60601
ADMINISTRATOR, TRANSFER AGENT
AND SHAREHOLDER SERVICE AGENT
PFPC Inc.
103 Bellevue Parkway
Wilmington, DE 19809
LEGAL COUNSEL
Vedder, Price, Kaufman & Kammholz
222 North LaSalle Street
Chicago, IL 60601
CUSTODIAN
PNC Bank
17th & Chestnut Streets
Philadelphia, PA 19101
INDEPENDENT ACCOUNTANTS
Coopers & Lybrand L.L.P.
2400 Eleven Penn Center
Philadelphia, PA 19103
DIRECTORS AND OFFICERS
Richard M. Amis
Director
Arthur G. De Russo
Director
David F. Holland
Director
Gerald J. Levy
Director and Vice Chairman
Rodger D. Shay
Director and Chairman
Edward E. Sammons, Jr.
President and Treasurer
Robert T. Podraza
Vice President and
Assistant Treasurer
Daniel K. Ellenwood
Secretary
Doris J. Pavel
Assistant Secretary
