<PAGE> 1
[LOGO]
ASSET MANAGEMENT FUND, INC.
SEMI-ANNUAL REPORT
APRIL 30, 1996
[LOGO]
ASSET MANAGEMENT FUND, INC.
111 EAST WACKER DRIVE
CHICAGO, IL 60601
<PAGE> 2
June 5, 1996
Dear Shareholder:
The Directors and Officers of the Asset Management Fund, Inc., are pleased to
send you the Semi-Annual Report to Shareholders for the six month period ending
April 30, 1996.
Interest rates continued their decline as 1995 came to a close, but the
decline was abruptly halted during the tail end of the first quarter of 1996.
The economy was showing renewed strength, especially in the creation of new
jobs. This brought the bull market in bonds to an end as forecasters turned 180
degrees to begin looking at the possibility of Federal Reserve tightening
actions. The backup in yields was dramatic as the 30 year Treasury yield went
back over 7%.
More recently, bond market sentiment has retreated somewhat from this bearish
outlook. Inflation reports have consistently shown that pricing pressures are
under control. This has allowed bond prices to recover and move the 30 year
T-bond yield back below 7%.
The AMF portfolios have reacted to these market conditions by shortening
durations slightly. We feel these are prudent actions given the current
difficulties the bond market is having. When we see indications that one side
has a better chance of winning this tug-of-war, we will position the portfolios
to take advantage of that move. As always, you can be assured that the AMF team
will manage these portfolios in a manner consistent with the objectives of our
shareholders.
Thank you for your confidence and investing with the Asset Management Fund.
Sincerely,
/s/ Rodger D. Shay
Rodger D. Shay
President
<PAGE> 3
- - --------------------------------------------------------------------------------
ASSET MANAGEMENT FUND, INC.
MONEY MARKET PORTFOLIO
STATEMENT OF NET ASSETS
APRIL 30, 1996 (UNAUDITED)
- - --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PERCENTAGE
OF NET PAR
ASSETS MATURITY (000) VALUE
- - -------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
AGENCY OBLIGATIONS.................................. 98.3%
Federal Home Loan Bank
5.30% 05/01/96 $ 40,000 $ 40,000,000
-----------
Student Loan Marketing Association -- weekly reset
5.38% 05/09/96 10,000 10,000,000
5.33% 08/08/96 10,000 10,000,000
5.25% 10/10/96 10,000 10,000,000
-----------
30,000,000
-----------
TOTAL AGENCY OBLIGATIONS
(Cost $70,000,000) 70,000,000
REPURCHASE AGREEMENT................................ 1.6%
Lanston (Aubrey G.) & Co., Inc.
5.32% (Agreement dated 04/30/96, to be
repurchased at $1,149,170 on 05/01/96;
collateralized by $1,181,000 U.S. Treasury
Bills, due 06/20/96. The market value of the
collateral is $1,173,205.)
(Cost $1,149,000) 05/01/96 1,149 1,149,000
-----------
TOTAL INVESTMENTS IN SECURITIES..................... 99.9%
(Cost $71,149,000)* 71,149,000
OTHER ASSETS IN EXCESS OF LIABILITIES............... 0.1% 92,428
-----------
Net Assets applicable to 71,241,428 Shares of Common
Stock issued and outstanding...................... 100.0% $ 71,241,428
===========
Net Asset Value, offering and redemption price per
share ($71,241,428 - 71,241,428) $1.00
======
- - -------------------------------------------------------------------------------------------------------
</TABLE>
* 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, 1996 (UNAUDITED)
- - --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PERCENTAGE
OF NET PAR
ASSETS MATURITY (000) VALUE
<S> <C> <C> <C> <C>
- - -------------------------------------------------------------------------------------------------------
U.S. TREASURY OBLIGATIONS.......................... 96.0%
U.S. Treasury Notes
6.875% 10/31/96 $25,000 $ 25,179,688
7.250% 11/30/96 30,000 30,290,625
7.250% 02/15/98 20,000 20,406,250
5.000% 02/15/99 10,000 9,703,125
7.125% 09/30/99 15,000 15,375,000
7.750% 11/30/99 15,000 15,675,000
6.250% 05/31/00 8,000 7,965,000
6.125% 07/31/00 5,000 4,953,125
6.125% 09/30/00 35,000 34,650,000
5.750% 10/31/00 8,000 7,800,000
5.625% 11/30/00 5,000 4,848,437
------------
TOTAL U.S. TREASURY OBLIGATIONS
(Cost $176,448,375) 176,846,250
REPURCHASE AGREEMENT............................... 3.2%
Lanston (Aubrey G.) & Co., Inc.
5.32% (Agreement dated 04/30/96, to be
repurchased at $5,927,876 on 05/01/96;
collateralized by $5,927,000 U.S. Treasury
Notes, 6.50%, due 05/15/05. The market value
of the collateral is $6,021,733.)
(Cost $5,927,000) 05/01/96 5,927 5,927,000
------------
TOTAL INVESTMENTS IN SECURITIES.................... 99.2%
(Cost $182,375,375)* 182,773,250
OTHER ASSETS IN EXCESS OF LIABILITIES.............. 0.8% 1,545,093
------------
Net Assets applicable to 17,524,030 Shares of
Common Stock issued and outstanding.............. 100.0% $184,318,343
=============
Net Asset Value, offering and redemption price per
share ($184,318,343 - 17,524,030) $10.52
=============
- - -------------------------------------------------------------------------------------------------------
</TABLE>
* Aggregate cost for Federal income tax purposes is $182,385,791. At April 30,
1996, the net unrealized appreciation for all securities of $387,459 consists
of gross unrealized appreciation of $1,877,592 and gross unrealized
depreciation of ($1,490,133).
See accompanying notes to financial statements.
2
<PAGE> 5
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ASSET MANAGEMENT FUND, INC.
ADJUSTABLE RATE MORTGAGE (ARM) PORTFOLIO
STATEMENT OF NET ASSETS
APRIL 30, 1996 (UNAUDITED)
- - --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PERCENTAGE
OF NET PAR
ASSETS MATURITY (000) VALUE
- - ------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
ADJUSTABLE RATE MORTGAGE-
RELATED SECURITIES*................................ 68.0%
Treasury Based ARMS.................................. 27.6%
Federal Home Loan Mortgage Corporation
8.05% 12/01/22 $11,470 $ 11,785,562
7.52% 05/01/23 16,295 16,671,889
7.98% 09/01/23 12,846 13,191,317
7.12% 04/01/24 18,475 18,827,154
Federal National Mortgage Association
8.03% 12/01/21 9,005 9,388,018
Government National Mortgage Association
5.50% 10/20/25 53,967 53,528,451
Citicorp 1992-18 CL A-1
7.24% 10/25/22 34,425 35,167,248
Fund America 1993A CL A-1
7.56% 06/25/23 21,953 22,624,984
Housing Securities, Inc. 1992 SL-1 CL A-1
8.00% 05/25/16 23,939 24,792,014
Resolution Trust Corp. Series 1993-3 CL A-7
7.82% 11/25/22 12,687 12,857,423
Resolution Trust Corp. Series 1992-1 CL A-1
7.55% 05/25/28 15,214 15,365,809
Resolution Trust Corp. Series 1995-2 CL A-3
7.00% 05/25/29 29,550 29,872,864
Ryland Mortgage Securities Corp. 1991-10 CL A-2
7.65% 06/25/21 7,477 7,495,266
------------
(Cost $269,830,601) 271,567,999
11th District Federal Home Loan Bank Cost of Funds
(COFI) Based ARMS.................................. 6.9%
Federal Home Loan Mortgage Corporation
7.28% 03/01/25 22,369 22,683,967
6.28% 06/01/30 34,321 33,935,286
Federal National Mortgage Association
6.28% 11/01/27 11,199 11,157,242
------------
(Cost $67,148,582) 67,776,495
- - ------------------------------------------------------------------------------------------------------
</TABLE>
See accompanying notes to financial statements.
3
<PAGE> 6
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ASSET MANAGEMENT FUND, INC.
ADJUSTABLE RATE MORTGAGE (ARM) PORTFOLIO (CONTINUED)
STATEMENT OF NET ASSETS
APRIL 30, 1996 (UNAUDITED)
- - --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PERCENTAGE
OF NET PAR
ASSETS MATURITY (000) VALUE
- - ------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Six Month Certificates of Deposit Based ARMS......... 8.4%
Federal National Mortgage Association
7.14% 01/01/22 $12,531 $ 12,714,646
6.65% 10/01/22 13,162 13,334,827
7.12% 12/01/22 17,941 18,204,854
7.38% 02/01/23 8,712 8,921,872
Salomon Brothers 1992-4
7.11% 09/25/22 11,266 11,434,803
Sears Mortgage 1992-16
7.25% 10/25/22 17,252 17,478,419
------------
(Cost $81,551,282) 82,089,421
London Interbank Offering Rate (LIBOR)
Based ARMS Federal Home Loan Corporation 25.1%
5.86% 06/15/07 14,339 14,405,719
7.68% 09/01/24 13,797 14,150,543
6.89% 02/01/26 43,920 44,962,610
Capstead 1992-14
7.05% 10/25/22 43,540 44,057,068
Donaldson, Lufkin, Jenrette Acceptance Corp. 1992-6
7.43% 07/25/22 57,093 57,806,918
Donaldson, Lufkin, Jenrette Acceptance Corp. 1992-9
7.02% 10/25/22 27,526 27,835,936
Ryland Mortgage Securities Corp. 1991-16 CL A-1
6.82% 09/25/21 9,190 9,213,307
Ryland Mortgage Securities Corp. 1991-15 CL A-1
6.89% 09/25/22 9,215 9,232,295
Saxon Mortgage 1993-1 CL A-1
8.00% 02/25/23 25,337 25,653,235
------------
(Cost $246,512,695) 247,317,631
------------
TOTAL ADJUSTABLE RATE
MORTGAGE-RELATED SECURITIES
(Cost $665,043,160) 668,751,546
- - ------------------------------------------------------------------------------------------------------
</TABLE>
See accompanying notes to financial statements.
4
<PAGE> 7
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ASSET MANAGEMENT FUND, INC.
ADJUSTABLE RATE MORTGAGE (ARM) PORTFOLIO (CONTINUED)
STATEMENT OF NET ASSETS
APRIL 30, 1996 (UNAUDITED)
- - --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PERCENTAGE
OF NET PAR
ASSETS MATURITY (000) VALUE
- - ------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
FIXED RATE MORTGAGE-RELATED
SECURITIES......................................... 11.0%
Collateralized Mortgage Obligations.................. 5.8%
Federal Home Loan Mortgage Corporation
5.25% 01/15/16 $10,000 $ 9,778,125
General Electric Capital Mortgage Services 1993-7
6.50% 08/25/05 14,621 14,620,788
General Electric Capital Mortgage Services 1993-18
6.00% 05/25/07 19,472 19,240,770
Residential Funding Mortgage Securities 94-S9
6.50% 03/25/24 13,319 13,239,979
------------
(Cost $57,004,140) 56,879,662
Pass Throughs........................................ 5.2%
Federal Home Loan Mortgage Corporation Gold
6.00% 09/01/02 19,310 18,688,568
7.50% 06/01/10 17,020 17,153,007
8.00% 06/01/14 9,161 9,275,705
10.50% 12/01/20 5,303 5,826,694
------------
(Cost $50,811,294) 50,943,974
------------
TOTAL FIXED RATE MORTGAGE-
RELATED SECURITIES
(Cost $107,815,434) 107,823,636
U.S. TREASURY OBLIGATIONS............................ 9.8%
U.S. Treasury Notes
6.875% 10/31/96 31,000 31,222,813
7.375% 11/15/97 10,000 10,203,125
6.125% 03/31/98 55,000 55,085,937
------------
TOTAL U.S. TREASURY OBLIGATIONS
(Cost $96,093,512) 96,511,875
- - ------------------------------------------------------------------------------------------------------
</TABLE>
See accompanying notes to financial statements.
5
<PAGE> 8
- - --------------------------------------------------------------------------------
ASSET MANAGEMENT FUND, INC.
ADJUSTABLE RATE MORTGAGE (ARM) PORTFOLIO (CONTINUED)
STATEMENT OF NET ASSETS
APRIL 30, 1996 (UNAUDITED)
- - --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PERCENTAGE
OF NET PAR
ASSETS MATURITY (000) VALUE
- - ------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
U.S. AGENCY OBLIGATION............................... 5.1%
Federal Home Loan Bank Discount Note
5.17% (Cost $49,992,819) 05/02/96 $50,000 $ 49,992,819
REPURCHASE AGREEMENTS................................ 6.9%
Lanston (Aubrey G.) & Co., Inc.
5.32% (Agreement dated 04/30/96, to be
repurchased at $25,172,719 on 05/01/96;
collateralized by $23,937,000 U.S. Treasury
Notes, 7.75%, due 12/31/99. The market value of
the collateral is $25,681,608.) 05/01/96 25,169 25,169,000
5.32% (Agreement dated 04/30/96, to be
repurchased at $43,120,371 on 05/01/96;
collateralized by $44,309,000 U.S. Treasury
Bills, due 06/20/96. The market value of the
collateral is $44,016,561.) 05/01/96 43,114 43,114,000
------------
TOTAL REPURCHASE AGREEMENTS
(Cost $68,283,000) 68,283,000
------------
TOTAL INVESTMENTS IN SECURITIES...................... 100.8%
(Cost $987,227,925)** 991,362,876
OTHER LIABILITIES IN EXCESS OF ASSETS................ (0.8%) (7,854,597)
------------
Net Assets applicable to 99,021,849 Shares of Common
Stock issued and outstanding....................... 100.0% $983,508,279
============
Net Asset Value, offering and redemption price per
share ($983,508,279 - 99,021,849) $9.93
======
- - ------------------------------------------------------------------------------------------------------
</TABLE>
* The interest rates shown are the rates at April 30, 1996.
** Aggregate cost for Federal income tax purposes is $987,443,792. At April 30,
1996, the net unrealized appreciation for all securities of $3,919,084
consists of gross unrealized appreciation of $5,109,015 and gross unrealized
depreciation of ($1,189,931).
See accompanying notes to financial statements.
6
<PAGE> 9
- - --------------------------------------------------------------------------------
ASSET MANAGEMENT FUND, INC.
INTERMEDIATE MORTGAGE SECURITIES PORTFOLIO
STATEMENT OF NET ASSETS
APRIL 30, 1996 (UNAUDITED)
- - --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PERCENTAGE
OF NET PAR
ASSETS MATURITY (000) VALUE
- - -------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
FIXED RATE MORTGAGE-RELATED
SECURITIES....................................... 66.3%
Collateralized Mortgage Obligations................ 7.2%
Federal Home Loan Mortgage Corporation
5.50% 04/15/20 $ 12,869 $ 12,357,851
Merrill Lynch Trust 43 B
9.00% 03/27/07 643 643,290
----------
(Cost $13,347,711) 13,001,141
Pass Throughs...................................... 59.1%
Federal Home Loan Mortgage Corporation Gold
6.50%, due 08/01/10 14,287 13,858,669
7.50%, due 01/01/07 to 01/01/10 26,035 26,238,370
6.00%, due 08/01/10 to 11/01/10 37,380 35,428,908
----------
75,525,947
Federal National Mortgage Association
6.50% 03/01/01 9,651 9,500,428
6.50% 01/01/02 5,867 5,775,005
6.50% 05/01/08 11,225 10,877,449
6.00% 01/01/11 4,940 4,680,673
----------
30,833,555
-----------
(Cost $107,019,851) 106,359,502
TOTAL FIXED RATE MORTGAGE-
RELATED SECURITIES
(Cost $120,367,562) 119,360,643
U.S. TREASURY OBLIGATIONS.......................... 33.2%
U.S. Treasury Notes
7.375% 11/15/97 5,000 5,101,563
6.000% 10/15/99 20,000 19,850,000
6.875% 03/31/00 10,000 10,175,000
6.500% 08/15/05 11,000 10,852,188
5.875% 11/15/05 3,000 2,830,312
5.625% 02/15/06 12,000 11,130,000
TOTAL U.S. TREASURY OBLIGATIONS ----------
(Cost $60,690,067) 59,939,063
- - -------------------------------------------------------------------------------------------------------
</TABLE>
See accompanying notes to financial statements.
7
<PAGE> 10
- - --------------------------------------------------------------------------------
ASSET MANAGEMENT FUND, INC.
INTERMEDIATE MORTGAGE SECURITIES PORTFOLIO (CONTINUED)
STATEMENT OF NET ASSETS
APRIL 30, 1996 (UNAUDITED)
<TABLE>
<CAPTION>
- - -------------------------------------------------------------------------------------------------------
PERCENTAGE
OF NET PAR
ASSETS MATURITY (000) VALUE
- - -------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
REPURCHASE AGREEMENT............................... 0.3%
Lanston (Aubrey G.) & Co., Inc.
5.32% (Agreement dated 04/30/96, to be
repurchased at $509,075 on 05/01/96;
collateralized by $538,000 U.S. Treasury
Notes, 5.75%, due 08/15/03. The market value
of the collateral is $518,087.)
(Cost $509,000) 05/01/96 $ 509 $ 509,000
TOTAL INVESTMENTS IN SECURITIES.................... 99.8% -------------
(Cost $181,566,629)* 179,808,706
OTHER ASSETS IN EXCESS OF LIABILITIES.............. 0.2% 355,142
Net Assets applicable to 19,089,852 Shares of -----------
Common Stock issued and outstanding.............. 100.0% $ 180,163,848
Net Asset Value, offering and redemption price per =============
share ($180,163,848 / 19,089,852) $9.44
======
- - -------------------------------------------------------------------------------------------------------
</TABLE>
* Aggregate cost for Federal income tax purposes is identical. At April 30,
1996, the net unrealized depreciation for all securities of ($1,757,923)
consists of gross unrealized appreciation of $1,214,494 and gross unrealized
depreciation of ($2,972,417).
See accompanying notes to financial statements.
8
<PAGE> 11
- - --------------------------------------------------------------------------------
ASSET MANAGEMENT FUND, INC.
U.S. GOVERNMENT MORTGAGE SECURITIES PORTFOLIO
STATEMENT OF NET ASSETS
APRIL 30, 1996 (UNAUDITED)
- - --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PERCENTAGE
OF NET PAR
ASSETS MATURITY (000) VALUE
- - -------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
FIXED RATE MORTGAGE-RELATED SECURITIES.............. 78.9%
Government National Mortgage Association
Obligations
10.00%, due 03/15/19 $ 1,271 $ 1,395,343
9.00%, due 11/05/04 to 10/15/21 6,857 7,246,789
8.50%, due 06/15/24 4,150 4,285,889
7.50%, due 02/15/24 15,389 15,206,581
7.00%, due 08/15/23 to 09/15/24 16,681 16,055,711
------------
(Cost $42,903,186) 44,190,313
U.S. TREASURY OBLIGATION............................ 19.0%
U.S. Treasury Note
6.00%
(Cost $10,836,110) 02/15/26 12,000 10,665,000
REPURCHASE AGREEMENT................................ 1.9%
Lanston (Aubrey G.) & Co., Inc.
5.32% (Agreement dated 04/30/96, to be
repurchased at $1,035,153 on 05/01/96;
collateralized by $1,038,000 U.S. Treasury
Notes, 5.625%, due 06/30/97. The market value
of the collateral is $1,055,757.)
(Cost $1,035,000) 05/01/96 1,035 1,035,000
------------
TOTAL INVESTMENTS IN SECURITIES..................... 99.8%
(Cost $54,774,296)* 55,890,313
OTHER ASSETS IN EXCESS OF LIABILITIES............... 0.2% 100,093
------------
Net Assets applicable to 5,376,826 Shares of Common
Stock issued and outstanding...................... 100.0% $ 55,990,406
============
Net Asset Value, offering and redemption price per
share ($55,990,406 - 5,376,826) $10.41
=======
- - -------------------------------------------------------------------------------------------------------
</TABLE>
* Aggregate cost for Federal income tax purposes is identical. At April 30,
1996, the net unrealized appreciation for all securities of $1,116,017
consists of gross unrealized appreciation of $1,571,007 and gross unrealized
depreciation ($454,990).
See accompanying notes to financial statements.
9
<PAGE> 12
- - --------------------------------------------------------------------------------
ASSET MANAGEMENT FUND, INC.
STATEMENT OF OPERATIONS
FOR THE SIX MONTHS ENDED APRIL 30, 1996 (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............. $2,052,163 $ 5,741,341 $31,208,377 $ 6,146,545 $ 2,285,913
---------- ----------- ----------- ----------- -----------
Operating expenses:
Investment advisory fee... 56,421 222,101 2,143,473 321,726 75,719
Distribution fee.......... 56,421 133,260 1,190,819 137,883 45,432
Administration fee........ 11,128 26,652 142,813 27,577 9,086
Custodian fee............. 8,928 20,355 90,471 21,416 15,562
Directors' fees........... 1,105 4,392 23,272 5,160 1,625
Transfer agent fee........ 6,183 5,520 16,409 2,437 1,642
Legal..................... 1,039 4,123 21,849 4,845 1,526
Audit..................... 1,290 5,129 27,178 6,026 1,898
Other..................... 311 5,401 20,425 4,369 3,528
---------- ----------- ----------- ----------- -----------
142,826 426,933 3,676,709 531,439 156,018
Fee waivers............... (56,421) -0- (1,428,983) (161,249) -0-
---------- ----------- ----------- ----------- -----------
Total operating
expenses............. 86,405 426,933 2,247,726 370,190 156,018
---------- ----------- ----------- ----------- -----------
Net investment
income............... 1,965,758 5,314,408 28,960,651 5,776,355 2,129,895
---------- ----------- ----------- ----------- -----------
REALIZED AND UNREALIZED GAINS
(LOSSES) FROM INVESTMENT
ACTIVITIES:
Net realized gain (loss).... -0- (85,331) 135,432 636,278 216,870
Net change in unrealized
appreciation /
depreciation of
investments............... -0- (3,014,576) (1,315,370) (5,339,849) (1,434,427)
---------- ----------- ----------- ----------- -----------
Net loss on
investments.......... -0- (3,099,907) (1,179,938) (4,703,571) (1,217,557)
---------- ----------- ----------- ----------- -----------
NET INCREASE IN NET ASSETS
RESULTING FROM OPERATIONS...... $1,965,758 $ 2,214,501 $27,780,713 $ 1,072,784 $ 912,338
========== =========== =========== =========== ===========
- - --------------------------------------------------------------------------------------------------------
</TABLE>
See accompanying notes to financial statements.
10
<PAGE> 13
- - --------------------------------------------------------------------------------
ASSET MANAGEMENT FUND, INC.
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
- - ------------------------------------------------------------------------------------------------------------
MONEY MARKET SHORT U.S. GOVERNMENT
PORTFOLIO SECURITIES PORTFOLIO
----------------------------- -----------------------------
SIX MONTHS SIX MONTHS
ENDED ENDED
APRIL 30, YEAR ENDED APRIL 30, YEAR ENDED
1996 OCTOBER 31, 1996 OCTOBER 31,
(UNAUDITED) 1995 (UNAUDITED) 1995
- - ------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Increase (decrease) in net assets:
Operations:
Net investment income........... $ 1,965,758 $ 2,246,026 $ 5,314,408 $ 10,501,665
Net gain (loss) on
investments................... -0- -0- (3,099,907) 3,361,847
------------- ------------- ------------ ------------
Net increase in net assets
resulting from
operations................. 1,965,758 2,246,026 2,214,501 13,863,512
------------- ------------- ------------ ------------
Dividends paid to stockholders:
From net investment income...... (1,965,758) (2,243,632) (5,314,408) (10,501,665)
From net realized capital
gains......................... -0- -0- -0- -0-
------------- ------------- ------------ ------------
Total dividends paid to
stockholders............... (1,965,758) (2,243,632) (5,314,408) (10,501,665)
------------- ------------- ------------ ------------
Capital share transactions:
Proceeds from sale of shares.... 465,628,797 389,839,779 34,613,398 31,763,091
Shares issued to stockholders in
reinvestment of dividends..... 1,124,496 1,752,434 2,651,859 5,466,387
Cost of shares repurchased...... (432,381,235) (437,694,716) (17,190,063) (52,987,943)
------------- ------------- ------------ ------------
Net increase (decrease) in net
assets from capital share
transactions............... 34,372,058 (46,102,503) 20,075,194 (15,758,465)
------------- ------------- ------------ ------------
Total increase (decrease) in
net assets................. 34,372,058 (46,100,109) 16,975,287 (12,396,618)
Net Assets:
Beginning of period................ 36,869,370 82,969,479 167,343,056 179,739,674
------------- ------------- ------------ ------------
End of period...................... $ 71,241,428 $ 36,869,370 $184,318,343 $167,343,056
============= ============= ============ ============
- - ------------------------------------------------------------------------------------------------------------
</TABLE>
See accompanying notes to financial statements.
11
<PAGE> 14
<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, 1996 OCTOBER 31, APRIL 30, 1996 OCTOBER 31, APRIL 30, 1996 OCTOBER 31,
(UNAUDITED) 1995 (UNAUDITED) 1995 (UNAUDITED) 1995
- - ------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
$ 28,960,651 $ 53,047,738 $ 5,776,355 $ 12,598,793 $ 2,129,895 $ 4,477,858
(1,179,938) 12,433,567 (4,703,571) 6,554,384 (1,217,557) 2,619,170
------------- -------------- ------------ ------------ ----------- -----------
27,780,713 65,481,305 1,072,784 19,153,177 912,338 7,097,028
------------- -------------- ------------ ------------ ----------- -----------
(28,864,483) (53,047,738) (5,759,678) (12,598,793) (2,123,752) (4,477,858)
-0- -0- -0- -0- -0- -0-
------------- -------------- ------------ ------------ ----------- -----------
(28,864,483) (53,047,738) (5,759,678) (12,598,793) (2,123,752) (4,477,858)
------------- -------------- ------------ ------------ ----------- -----------
456,737,516 314,389,247 11,917,470 2,232,516 9,733,212 2,562,981
14,478,714 26,963,939 3,533,581 7,468,823 953,187 1,875,444
(378,162,378) (508,162,846) (17,687,588) (42,595,593) (15,743,077) (5,411,804)
------------- -------------- ------------ ------------ ----------- -----------
93,053,852 (166,809,660) (2,236,537) (32,894,254) (5,056,678) (973,379)
------------- -------------- ------------ ------------ ----------- -----------
91,970,082 (154,376,093) (6,923,431) (26,339,870) (6,268,092) 1,645,791
891,538,197 1,045,914,290 187,087,279 213,427,149 62,258,498 60,612,707
------------- -------------- ------------ ------------ ----------- -----------
$ 983,508,279 $ 891,538,197 $180,163,848 $187,087,279 $55,990,406 $62,258,498
============= ============== ============ ============ =========== ===========
- - ------------------------------------------------------------------------------------------------------------------
</TABLE>
See accompanying notes to financial statements.
12
<PAGE> 15
- - --------------------------------------------------------------------------------
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, 1996 --------------------------------------------------------
(UNAUDITED) 1995 1994 1993 1992 1991
- - ------------------------------------------------------------------------------------------------------------
<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.......... .0262 .0547 .0346 .0277 .0358 .0595
Net realized and unrealized
gain (loss) on investments.... -0- -0- -0- -0- -0- -0-
------- ------- ------- -------- -------- --------
Total from investment
operations............. .0262 .0547 .0346 .0277 .0358 .0595
------- ------- ------- -------- -------- --------
Less distributions:
- - --------------------
Dividends paid to stockholders:
From net investment income.... (.0262) (.0547) (.0346) (.0277) (.0358) (.0595)
From net realized gains....... -0- -0- -0- -0- -0- -0-
------- ------- ------- -------- -------- --------
Total distributions to
stockholders........... (.0262) (.0547) (.0346) (.0277) (.0358) (.0595)
------- ------- ------- -------- -------- --------
Net asset value, end of period... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
======= ======= ======= ======== ======== ========
Total return..................... 2.65% 5.60% 3.51% 2.80% 3.64% 6.11%
Ratios/Supplemental data:
- - ------------------------------
Net assets, end of period
(in 000's).................... $71,241 $36,869 $82,969 $107,924 $110,090 $131,291
Ratio of expenses to average
net assets.................... 0.23%(1)(2) 0.24%(1) 0.40%(1) 0.40% 0.41% 0.45%
Ratio of net investment income
to average net assets......... 5.22%(2) 5.40% 3.34% 2.77% 3.54% 5.83%
- - ------------------------------------------------------------------------------------------------------------
</TABLE>
(1) Without fee waivers for the Money Market Portfolio for the six months ended
April 30, 1996 and the years ended October 31, 1995 and 1994, the ratios of
expenses to average net assets would have been .38% (annualized), .39%, and
.42%, respectively.
(2) Annualized.
See accompanying notes to financial statements.
13
<PAGE> 16
- - --------------------------------------------------------------------------------
ASSET MANAGEMENT FUND, INC.
SHORT U.S. GOVERNMENT SECURITIES PORTFOLIO
FINANCIAL HIGHLIGHTS
(FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD)
- - --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SIX MONTHS
ENDED APRIL YEAR ENDED OCTOBER 31,
30, 1996 ----------------------------------------------------
(UNAUDITED) 1995 1994 1993 1992 1991
- - --------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of
period............................ $ 10.68 $ 10.45 $ 10.89 $ 10.85 $ 10.71 $ 10.39
--------- -------- -------- -------- -------- --------
Income from investment operations:
- - -----------------------------------
Net investment income............ .3178 .6746 .5396 .6155 .7652 .8308
Net realized and unrealized gain
(loss) on investments........... (.1600) .2300 (.4400) .0400 .1400 .3200
--------- -------- -------- -------- -------- --------
Total from investment
operations............... .1578 .9046 .0996 .6555 .9052 1.1508
--------- -------- -------- -------- -------- --------
Less distributions:
- - -----------------------------------
Dividends paid to stockholders:
From net investment income.... (.3178) (.6746) (.5396) (.6155) (.7652) (.8308)
From net realized gains....... -0- -0- -0- -0- -0- -0-
--------- -------- -------- -------- -------- --------
Total distributions to
stockholders............. (.3178) (.6746) (.5396) (.6155) (.7652) (.8308)
--------- -------- -------- -------- -------- --------
Net asset value, end of period..... $ 10.52 $ 10.68 $ 10.45 $ 10.89 $ 10.85 $ 10.71
========= ======== ======== ======== ======== ========
Total return....................... 1.47% 8.94% 0.95% 6.19% 8.72% 11.35%
Ratios/Supplemental data:
- - -----------------------------------
Net assets, end of period (in
000's).......................... $184,318 $167,343 $179,740 $235,705 $213,995 $309,791
Ratio of expenses to average net
assets........................ 0.48%(1) 0.49% 0.47% 0.48% 0.50% 0.51%
Ratio of net investment income to
average net assets............ 5.97%(1) 6.42% 5.04% 5.65% 7.15% 7.92%
Portfolio turnover rate.......... 5% 112% 195% 110% 43% 18%
- - --------------------------------------------------------------------------------------------------------
</TABLE>
(1) Annualized.
See accompanying notes to financial statements.
14
<PAGE> 17
- - --------------------------------------------------------------------------------
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, 1996 --------------------------------------------------------------
(UNAUDITED) 1995 1994 1993 1992 1991*
- - ------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of
period........................ $ 9.94 $ 9.78 $ 10.02 $ 9.98 $ 10.01 $ 10.00
-------- -------- ---------- ---------- ---------- --------
Income from investment operations:
- - ------------------------------------
Net investment income......... .3001 .6035 .4396 .4267 .5235 .0783
Net realized and unrealized
gain (loss) on
investments................. (.0110) .1600 (.2400) .0386 (.0295) .0118
-------- -------- ---------- ---------- ---------- --------
Total from investment
operations............. .2891 .7635 .1996 .4653 .4940 .0901
-------- -------- ---------- ---------- ---------- --------
Less distributions:
- - ------------------
Dividends paid to
stockholders:
From net investment
income.................... (.2991) (.6035) (.4396) (.4253) (.5240) (.0801)
From net realized gains..... -0- -0- -0- -0- -0- -0-
-------- -------- ---------- ---------- ---------- --------
Total distributions to
stockholders........... (.2991) (.6035) (.4396) (.4253) (.5240) (.0801)
-------- -------- ---------- ---------- ---------- --------
Net asset value, end of
period........................ $ 9.93 $ 9.94 $ 9.78 $ 10.02 $ 9.98 $ 10.01
======== ======== ========== ========== ========== ========
Total return.................... 2.94% 8.02% 2.04% 4.76% 5.05% 7.73%(2)
Ratios/Supplemental data:
- - ---------------------------
Net assets, end of period
(in 000's).................. $983,508 $891,538 $1,045,914 $1,572,311 $1,189,309 $220,858
Ratio of expenses to average
net assets.................. 0.47%(1)(2) 0.48%(1) 0.47%(1) 0.46%(1) 0.44%(1) 0.20%(1)(2)
Ratio of net investment income
to average net assets....... 6.06%(2) 6.12% 4.40% 4.34% 5.14% 6.47%(2)
Portfolio turnover rate....... 26% 68% 65% 30% 43% 0%
- - ------------------------------------------------------------------------------------------------------------------
</TABLE>
* Reflects operations for the period from September 18, 1991 (commencement of
operations) through October 31, 1991.
(1) Without fee waivers for the Adjustable Rate Mortgage (ARM) Portfolio for the
six months ended April 30, 1996, the years ended October 31, 1995, 1994,
1993, and 1992, and the period ending October 31, 1991, the ratios of
expenses to average net assets would have been .77% (annualized), .78%,
.76%, .76%, .80%, and .79% (annualized), respectively.
(2) Annualized.
See accompanying notes to financial statements.
15
<PAGE> 18
- - --------------------------------------------------------------------------------
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, 1996 ----------------------------------------------------
(UNAUDITED) 1995 1994 1993 1992 1991
- - --------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of
period.......................... $ 9.68 $ 9.34 $ 10.00 $ 9.80 $ 9.61 $ 9.00
-------- -------- -------- -------- -------- --------
Income from investment operations:
Net investment income........... .3026 .6211 .5407 .5982 .7161 .8071
Net realized and unrealized gain
(loss) on investments.......... (.2409) .3400 (.6600) .1987 .1909 .6100
-------- -------- -------- -------- -------- --------
Total from investment
operations................. .0617 .9611 (.1193) .7969 .9070 1.4171
-------- -------- -------- -------- -------- --------
Less distributions:
Dividends paid to stockholders:
From net investment income..... (.3017) (.6211) (.5407) (.5969) (.7170) (.8071)
From net realized gains........ -0- -0- -0- -0- -0- -0-
-------- -------- -------- -------- -------- --------
Total distributions to
stockholders............... (.3017) (.6211) (.5407) (.5969) (.7170) (.8071)
-------- -------- -------- -------- -------- --------
Net asset value, end of period.... $ 9.44 $ 9.68 $ 9.34 $ 10.00 $ 9.80 $ 9.61
======== ======== ======== ======== ======== ========
Total return...................... 0.60% 10.63% (1.18%) 8.33% 9.74% 16.41%
Ratios/Supplemental data:
Net assets, end of period
(in 000's)..................... $180,164 $187,087 $213,427 $218,032 $116,458 $ 59,298
Ratio of expenses to average net
assets......................... 0.40%(1)(2) 0.38%(1) 0.39%(1) 0.37%(1) 0.43%(1) 0.63%
Ratio of net investment income
to average net assets.......... 6.27%(2) 6.55% 5.61% 5.94% 7.14% 8.71%
Portfolio turnover rate......... 49% 133% 358% 106% 226% 39%
- - --------------------------------------------------------------------------------------------------------
</TABLE>
(1) Without fee waivers for the Intermediate Mortgage Securities Portfolio for
the six months ended April 30, 1996 and the years ended October 31, 1995,
1994, 1993, and 1992, the ratios of expenses to average net assets would
have been .58% (annualized), .58%, .59%, .57%, and .61%, respectively.
(2) Annualized.
See accompanying notes to financial statements.
16
<PAGE> 19
- - --------------------------------------------------------------------------------
ASSET MANAGEMENT FUND, INC.
U.S. GOVERNMENT MORTGAGE SECURITIES PORTFOLIO
FINANCIAL HIGHLIGHTS
(FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD)
- - --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SIX MONTHS
ENDED APRIL YEAR ENDED OCTOBER 31,
30, 1996 ----------------------------------------------
(UNAUDITED) 1995 1994 1993 1992 1991
- - --------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period..... $ 10.68 $ 10.23 $ 11.28 $ 11.26 $ 11.29 $ 10.61
-------- ------- ------- ------- ------- -------
Income from investment operations:
Net investment income.................. .3747 .7703 .7296 .8306 .8924 .9504
Net realized and unrealized gain (loss)
on investments........................ (.2711) .4500 (.9300) .0195 (.0297) .6800
-------- ------- ------- ------- ------- ------
Total from investment operations.... .1036 1.2203 (.2004) .8501 .8627 1.6304
-------- ------- ------- ------- ------- ------
Less distributions:
Dividends paid to stockholders:
From net investment income............ (.3736) (.7703) (.7296) (.8301) (.8927) (.9504)
From net realized gains............... -0- -0- (.1200) -0- -0- -0-
-------- ------- ------- ------- ------- ------
Total distributions to
stockholders...................... (.3736) (.7703) (.8496) (.8301) (.8927) (.9504)
-------- ------- ------- ------- ------- ------
Net asset value, end of period........... $ 10.41 $ 10.68 $ 10.23 $ 11.28 $ 11.26 $ 11.29
======== ======= ======= ======= ======= =======
Total return............................. 0.93% 12.37% (1.82%) 7.76% 7.91% 16.00%
Ratios/Supplemental data:
Net assets, end of period (in 000's)... $ 55,990 $62,258 $60,613 $92,994 $72,505 $82,849
Ratio of expenses to average net
assets................................ 0.51%(1) 0.53% 0.51% 0.51% 0.53% 0.54%
Ratio of net investment income to
average net assets.................... 7.01%(1) 7.39% 6.81% 7.32% 7.91% 8.75%
Portfolio turnover rate................ 99% 177% 376% 187% 64% 43%
- - --------------------------------------------------------------------------------------------------------
</TABLE>
(1) Annualized.
See accompanying notes to financial statements.
17
<PAGE> 20
- - --------------------------------------------------------------------------------
ASSET MANAGEMENT FUND, INC.
NOTES TO FINANCIAL STATEMENTS
(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 or at prices provided
directly by market makers. 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 and may include matrix pricing methods.
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 are declared daily and paid monthly. Dividends payable are recorded
on the dividend record date.
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.
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. Shay Assets Management Co. (Adviser), which is equally owned by two general
partners, Shay Assets Management, Inc. and ACB Assets Management, Inc., serves
as the Fund's investment adviser. Shay Assets Management, Inc. is controlled by
Rodger D. Shay, the President of the Fund. The other half interest in the
Adviser is held by ACB Assets Management, Inc., an indirect wholly-owned
subsidiary of America's Community Bankers (ACB).
As compensation for the Advisor's services, the Fund pays an investment
advisory fee monthly
18
<PAGE> 21
- - --------------------------------------------------------------------------------
ASSET MANAGEMENT FUND, INC.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
(UNAUDITED)
- - --------------------------------------------------------------------------------
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, 1996. The waiver amounted to $56,421.
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, 1996. The waiver amounted to $952,655.
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 50% of its fee for the six months ended April
30, 1996. The waiver amounted to $161,249.
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%.
Shay Financial Services Co. (Sponsor), which is equally owned by two general
partners, Shay Financial Services, Inc. and ACB Securities, Inc., serves as the
Fund's sponsor. Shay Financial Services, Inc. is controlled by Rodger D. Shay,
the President of the Fund. The other half interest in the Sponsor is held by ACB
Securities, Inc., an indirect wholly-owned subsidiary of ACB.
As compensation for the Sponsor's distribution services, the Fund pays the
Sponsor 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 Sponsor voluntarily waived
40% of its fee for the six months ended
April 30, 1996. The waiver amounted to $476,328.
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.
19
<PAGE> 22
- - --------------------------------------------------------------------------------
ASSET MANAGEMENT FUND, INC.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
(UNAUDITED)
- - --------------------------------------------------------------------------------
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.
Transactions in shares of the Fund for the six months ended April 30, 1996 and
the year ended October 31, 1995 were as follows:
- - --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
- - --------------------------------------------------------------------------------------------------------------
MONEY MARKET SHORT U.S. GOVERNMENT
PORTFOLIO SECURITIES PORTFOLIO
---------------------------------------------------------------------------
SIX MONTHS ENDED SIX MONTHS ENDED
APRIL 30, 1996 YEAR ENDED APRIL 30, 1996 YEAR ENDED
(UNAUDITED) OCTOBER 31, 1995 (UNAUDITED) OCTOBER 31, 1995
- - --------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Sale of shares..................... 465,628,797 389,839,779 3,217,657 2,982,085
Shares issued to stockholders in
reinvestment of dividends........ 1,124,496 1,752,434 247,436 520,236
Shares repurchased................. (432,381,235) (437,694,716) (1,607,202) (5,044,075)
------------- ------------ ----------- -----------
Net increase (decrease)............ 34,372,058 (46,102,503) 1,857,891 (1,541,754)
Shares outstanding:
Beginning of period.............. 36,869,370 82,971,873 15,666,139 17,207,893
------------- ------------ ----------- -----------
End of period.................... 71,241,428 36,869,370 17,524,030 15,666,139
============= ============ =========== ===========
- - --------------------------------------------------------------------------------------------------------------
<CAPTION>
ADJUSTABLE RATE MORTGAGE INTERMEDIATE MORTGAGE
(ARM) PORTFOLIO SECURITIES PORTFOLIO
---------------------------------------------------------------------------
SIX MONTHS ENDED SIX MONTHS ENDED
APRIL 30, 1996 YEAR ENDED APRIL 30, 1996 YEAR ENDED
(UNAUDITED) OCTOBER 31, 1995 (UNAUDITED) OCTOBER 31, 1995
- - --------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Sale of shares..................... 45,806,588 31,767,897 1,218,232 235,385
Shares issued to stockholders in
reinvestment of dividends........ 1,453,513 2,735,804 363,409 789,781
Shares repurchased................. (37,951,686) (51,689,731) (1,815,837) (4,541,737)
------------ ----------- ---------- ----------
Net increase (decrease)............ 9,308,415 (17,186,030) (234,196) (3,516,571)
Shares outstanding:
Beginning of period.............. 89,713,434 106,899,464 19,324,048 22,840,619
------------ ----------- ---------- ----------
End of period.................... 99,021,849 89,713,434 19,089,852 19,324,048
============ =========== ========== ==========
- - --------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
- - --------------------------------------------------------------------------------------------------------
U.S. GOVERNMENT MORTGAGE
SECURITIES PORTFOLIO
------------------------------------
SIX MONTHS ENDED
APRIL 30, 1996 YEAR ENDED
(UNAUDITED) OCTOBER 31, 1995
- - --------------------------------------------------------------------------------------------------------
<S> <C> <C>
Sale of shares..................................................... 902,820 243,512
Shares issued to stockholders in reinvestment of dividends......... 88,627 180,463
Shares repurchased................................................. (1,443,453) (520,356)
---------- ---------
Net increase (decrease)............................................ (452,006) (96,381)
Shares outstanding:
Beginning of period.............................................. 5,828,832 5,925,213
---------- ---------
End of period.................................................... 5,376,826 5,828,832
========== =========
- - --------------------------------------------------------------------------------------------------------
</TABLE>
20
<PAGE> 23
- - --------------------------------------------------------------------------------
ASSET MANAGEMENT FUND, INC.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
(UNAUDITED)
- - --------------------------------------------------------------------------------
D. At April 30, 1996, 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........ $ 71,241,428 $201,936,294 $ 1,003,634,080 $199,867,448 $58,699,140
Accumulated net
realized losses...... -0- (18,015,826) (24,356,920) (17,962,354) (3,830,894)
Undistributed net
investment income.... -0- -0- 96,168 16,677 6,143
Net unrealized
appreciation
(depreciation) of
investments.......... -0- 397,875 4,134,951 (1,757,923) 1,116,017
----------- ------------ -------------- ------------ -----------
$ 71,241,428 $184,318,343 $ 983,508,279 $180,163,848 $55,990,406
=========== ============ ============== ============ ===========
- - ---------------------------------------------------------------------------------------------------------
</TABLE>
E. For tax purposes at October 31, 1995, the Short U.S. Government Securities
Portfolio had a capital loss carryforward of $17,920,079, of which $87,032
expires in 1996, $8,161,004 expires in 1997, $4,590,496 expires in 1998,
$4,615,249 expires in 2002, and $466,298 expires in 2003. The Adjustable Rate
Mortgage (ARM) Portfolio had a capital loss carryforward of $22,620,451, of
which $1,067,764 expires in 2000, $5,932,937 expires in 2001, $10,944,856
expires in 2002, and $4,674,894 expires in 2003.
The Intermediate Mortgage Securities Portfolio had a capital loss carryforward
of $18,338,772, of which $2,703,680 expires in 1996, $2,760,938 expires in 1997,
$1,415,174 expires in 1998, $9,526,290 expires in 2002, and $1,932,690 expires
in 2003. The U.S. Government Mortgage Securities Portfolio had a capital loss
carryforward of $4,067,311, of which $3,336,057 expires in 2002 and $731,254
expires in 2003. All losses are available to offset future realized capital
gains, if any.
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<PAGE> 24
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ASSET MANAGEMENT FUND, INC.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
(UNAUDITED)
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F. For the six months ended April 30, 1996, purchases and proceeds from
sales/maturities of securities, other than short-term investments, were as
follows:
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<TABLE>
<CAPTION>
ADJUSTABLE U.S.
SHORT U.S. RATE INTERMEDIATE GOVERNMENT
GOVERNMENT MORTGAGE MORTGAGE MORTGAGE
SECURITIES (ARM) SECURITIES SECURITIES
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
- - ------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Purchases:
U.S. Government obligations............ $28,065,859 $293,239,654 $100,669,210 $62,126,250
Other securities....................... -0- 51,716,856 -0- -0-
----------- ------------ ------------ -----------
Total purchases..................... $28,065,859 $344,956,510 $100,669,210 $62,126,250
=========== ============ ============ ===========
Sales and maturities:
U.S. Government obligations............ $ 7,980,820 $278,758,637 $ 87,341,352 $60,929,706
Other securities....................... -0- 41,248,732 9,544,836 -0-
----------- ------------ ------------ -----------
Total sales and maturities.......... $ 7,980,820 $320,007,369 $ 96,886,188 $60,929,706
=========== ============ ============ ===========
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</TABLE>
22
<PAGE> 25
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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 CO.
111 East Wacker Drive/Chicago, IL 60601
800-527-3713
9200 South Dadeland Boulevard/Miami, FL 33156
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
580 California Street/San Francisco, CA 94104
800-227-5566
350 Springfield Avenue/Summit, NJ 07091
800-553-6159
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ACCOUNT INFORMATION
- - -------------------------------------------------------------------------------
To obtain performance data and place purchase orders, call toll free
800-527-3713.
23
<PAGE> 26
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- - -------------------------------------------------------------------------------
SPONSOR
Shay Financial Services Co.
111 East Wacker Drive
Chicago, IL 60601
INVESTMENT ADVISER
Shay Assets Management Co.
111 East Wacker Drive
Chicago, IL 60601
ADMINISTRATOR AND 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
Arthur G. De Russo
Director
David F. Holland
Director
Leon T. Kendall
Director and Chairman
Gerald J. Levy
Director
Rodger D. Shay
President and Director
Edward E. Sammons, Jr.
Vice President, Treasurer and Secretary
Doris J. Pavel
Assistant Secretary
