<PAGE> 1
ASSET MANAGEMENT FUND, INC. LOGO
ASSET MANAGEMENT FUND, INC.
111 EAST WACKER DRIVE
CHICAGO, IL 60601
ASSET MANAGEMENT FUND, INC. LOGO
ASSET MANAGEMENT FUND, INC.
SEMI-ANNUAL REPORT
APRIL 30, 1997
<PAGE> 2
- --------------------------------------------------------------------------------
June 6, 1997
Dear 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,
1997.
Throughout most of the period, a very benign inflationary environment pushed
bond prices higher and yields lower despite a rapidly growing economy and
increasing tightness in the labor market. The Federal Reserve, however, after
several warnings, finally said, "enough" and on March 5th, 1997 raised short
term rates by 25 basis points as a precautionary move designed to quell any
doubts that they continued to stand "foresquare" against inflation, be it
perceived or anticipated.
Prices slumped and yields advanced, but only to the extent that the inflation
sensitive long end of the Treasury curve remained essentially unchanged over the
six month time frame while the short end of the Treasury curve cheapened by
about 20 basis points as short rates were forced upward in response to the Fed's
action.
The durations of all the AMF portfolios were shortened early in 1997 in the
expectation that rates would likely be pressured upward by the robust economy
and for the foreseeable future. We would anticipate maintaining a fairly
defensive posture until there is greater certainty that economic growth will
moderate and that the Fed will remain on the sidelines. However, for a host of
reasons, the AMF portfolio managers are staunchly bullish over the longer term
and expect that current conditions will ultimately give-way to a prolonged
period of restrained economic activity and lower rates.
As always, whatever our market view, the AMF portfolio management team remains
committed to providing professional asset management services and will continue
to manage the portfolios in a manner consistent with the objectives of our
shareholders. Thank you for investing with the Asset Management Fund.
Sincerely,
Rodger D. Shay
Rodger D. Shay
President
<PAGE> 3
- --------------------------------------------------------------------------------
ASSET MANAGEMENT FUND, INC.
MONEY MARKET PORTFOLIO
STATEMENT OF NET ASSETS
APRIL 30, 1997 (UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PERCENTAGE
OF NET PAR
ASSETS MATURITY (000) VALUE
<S> <C> <C> <C> <C>
- ------------------------------------------------------------------------------------------------------
AGENCY OBLIGATIONS.................................... 97.5%
Federal Home Loan Bank -- discount notes
5.28% 05/01/97 $33,000 $33,000,000
5.32% 05/02/97 5,000 4,999,261
-----------
37,999,261
Federal National Mortgage Association* -- weekly reset
5.50% 05/06/97 5,000 5,000,000
Student Loan Marketing Association* -- weekly reset
5.51% 05/06/97 10,000 10,000,000
5.53% 05/06/97 5,110 5,110,000
-----------
15,110,000
-----------
TOTAL AGENCY OBLIGATIONS
(Cost $58,109,261) 58,109,261
REPURCHASE AGREEMENT.................................. 2.3%
Lanston (Aubrey G.) & Co., Inc.
5.35% (Agreement dated 04/30/97, to be
repurchased at $1,373,204 on 05/01/97;
collateralized by $1,240,000 U.S. Treasury
Bonds, 8.125%, due 08/15/19. The market value
of the collateral is $1,410,339.)
(Cost $1,373,000) 05/01/97 1,373 1,373,000
-----------
TOTAL INVESTMENTS IN SECURITIES....................... 99.8%
(Cost $59,482,261)** 59,482,261
OTHER ASSETS IN EXCESS OF LIABILITIES................. 0.2% 96,620
-----------
Net Assets applicable to 59,578,881 Shares of Common
Stock issued and outstanding........................ 100.0% $59,578,881
===========
Net Asset Value, offering and redemption price per
share ($59,578,881 / 59,578,881) $1.00
======
</TABLE>
- --------------------------------------------------------------------------------
* Variable Rate Obligations -- The interest rate shown is the rate at April 30,
1997 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, 1997 (UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PERCENTAGE
OF NET PAR
ASSETS MATURITY (000) VALUE
<S> <C> <C> <C> <C>
- --------------------------------------------------------------------------------------------------------
U.S. TREASURY OBLIGATIONS.......................... 97.2%
U.S. Treasury Notes
7.250% 02/15/98 $20,000 $ 20,200,000
6.000% 05/31/98 20,000 19,990,625
6.250% 07/31/98 7,000 7,015,313
6.250% 03/31/99 2,000 1,999,687
6.375% 05/15/99 17,000 17,023,906
7.125% 09/30/99 15,000 15,260,156
7.750% 11/30/99 15,000 15,480,469
6.125% 07/31/00 5,000 4,952,344
6.500% 08/31/01 8,000 7,983,750
6.625% 03/31/02 2,000 2,004,063
6.625% 04/30/02 3,000 3,007,031
------------
TOTAL U.S. TREASURY OBLIGATIONS
(Cost $113,810,253) 114,917,344
REPURCHASE AGREEMENT............................... 1.5%
Lanston (Aubrey G.) & Co., Inc.
5.35% (Agreement dated 04/30/97, to be
repurchased at $1,784,265 on 05/01/97;
collateralized by $1,705,000 U.S. Treasury
Notes, 8.50%, due 02/15/00. The market value
of the collateral is $1,820,809.)
(Cost $1,784,000) 05/01/97 1,784 1,784,000
------------
TOTAL INVESTMENTS IN SECURITIES.................... 98.7%
(Cost $115,594,253)* 116,701,344
OTHER ASSETS IN EXCESS OF LIABILITIES.............. 1.3% 1,572,250
------------
Net Assets applicable to 11,325,314 Shares of
Common Stock issued and outstanding.............. 100.0% $118,273,594
============
Net Asset Value, offering and redemption price per
share ($118,273,594 / 11,325,314) $10.44
============
</TABLE>
- --------------------------------------------------------------------------------
* Aggregate cost for Federal income tax purposes is $115,598,174. At April 30,
1997, the net and gross unrealized appreciation for all securities is
$1,103,170.
See accompanying notes to financial statements.
2
<PAGE> 5
- --------------------------------------------------------------------------------
ASSET MANAGEMENT FUND, INC.
ADJUSTABLE RATE MORTGAGE (ARM) PORTFOLIO
STATEMENT OF NET ASSETS
APRIL 30, 1997 (UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PERCENTAGE
OF NET PAR
ASSETS MATURITY (000) VALUE
<S> <C> <C> <C> <C>
- -------------------------------------------------------------------------------------------------------
ADJUSTABLE RATE MORTGAGE-RELATED SECURITIES*......... 77.4%
Treasury Based ARMS.................................. 30.4%
Federal Home Loan Mortgage Corporation
7.58% 05/01/23 $12,825 $ 13,377,742
7.97% 09/01/23 9,171 9,543,506
7.64% 04/01/24 14,035 14,482,133
7.72% 03/01/25 18,416 18,933,611
Federal National Mortgage Association
6.06% 11/25/23 32,044 32,044,422
Citicorp 1992-18 CL A-1
7.25% 10/25/22 28,580 29,508,891
Fund America 1993A CL A-1
7.47% 06/25/23 18,708 19,462,195
Housing Securities, Inc. 1992 SL-1 CL A-1
7.95% 05/25/16 19,680 20,596,564
Resolution Trust Corp. Series 1993-3 CL A-7
7.73% 11/25/22 23,202 23,593,514
Resolution Trust Corp. Series 1995-2 CL A-3
6.92% 05/25/29 24,868 25,310,617
Ryland Mortgage Securities Corp. 1991-10 CL A-2
7.67% 06/25/21 5,961 5,983,513
------------
(Cost $209,331,295) 212,836,708
11th District Federal Home Loan Bank Cost of Funds
(COFI) Based ARMS.................................. 2.8%
Federal Home Loan Mortgage Corporation
6.07%
(Cost $19,534,843) 06/01/30 19,864 19,553,493
Six Month Certificates of Deposit Based ARMS......... 11.5%
Federal National Mortgage Association
6.86% 01/01/22 10,713 10,997,783
6.90% 10/01/22 11,186 11,458,324
6.99% 12/01/22 14,824 15,180,680
7.41% 02/01/23 7,692 7,970,319
6.94% 09/01/23 15,059 15,365,117
Sears Mortgage 1992-16
7.19% 10/25/22 19,266 19,699,731
------------
(Cost $79,559,340) 80,671,954
- -------------------------------------------------------------------------------------------------------
See accompanying notes to financial statements.
</TABLE>
3
<PAGE> 6
- --------------------------------------------------------------------------------
ASSET MANAGEMENT FUND, INC.
ADJUSTABLE RATE MORTGAGE (ARM) PORTFOLIO (CONTINUED)
STATEMENT OF NET ASSETS
APRIL 30, 1997 (UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PERCENTAGE
OF NET PAR
ASSETS MATURITY (000) VALUE
<S> <C> <C> <C> <C>
- -------------------------------------------------------------------------------------------------------
London Interbank Offering Rate (LIBOR)
Based ARMS......................................... 32.7%
Federal Home Loan Mortgage Corporation
7.73% 09/01/24 $11,624 $ 12,118,051
7.60% 02/01/26 30,689 31,897,723
6.09% 02/15/26 14,729 14,751,594
7.30% 05/01/26 16,728 17,276,621
Chase 90-EA1
7.19% 11/25/20 20,000 20,350,020
CMC Securities Corp. 93-2H A1
7.50% 09/25/23 26,211 26,858,424
Donaldson, Lufkin, Jenrette Acceptance Corp. 1992-6
7.20% 07/25/22 44,940 46,119,738
Donaldson, Lufkin, Jenrette Acceptance Corp. 1992-9
7.20% 10/25/22 22,152 22,664,420
Residential Funding Mortgage Securities 1996-S23
5.99% 11/25/26 15,666 15,670,572
Saxon Mortgage 1993-1 CL A-1
7.75% 02/25/23 21,677 21,893,641
------------
(Cost $226,750,252) 229,600,804
------------
TOTAL ADJUSTABLE RATE MORTGAGE-RELATED
SECURITIES
(Cost $535,175,730) 542,662,959
FIXED RATE MORTGAGE-RELATED SECURITIES............... 14.5%
Collateralized Mortgage Obligations
Federal Home Loan Mortgage Corporation
8.00% 06/01/14 6,417 6,499,240
5.25% 01/15/16 10,000 9,881,250
9.25% 01/01/17 7,309 7,760,953
10.50% 12/01/20 4,294 4,700,690
Federal National Mortgage Association 1993-131 B
5.75% 06/25/06 13,403 13,206,579
General Electric Capital Mortgage Services 1993-18
6.00% 05/25/07 19,472 19,319,875
General Electric Capital Mortgage Services 1997-3
7.50% 04/25/27 10,346 10,384,418
Kidder Peabody Mortgage Asset Account 4D
8.39% 05/20/18 7,248 7,372,455
- -------------------------------------------------------------------------------------------------------
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, 1997 (UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PERCENTAGE
OF NET PAR
ASSETS MATURITY (000) VALUE
<S> <C> <C> <C> <C>
- -------------------------------------------------------------------------------------------------------
Prudential Home Mortgage Services 1996-6
6.00% 05/25/26 $13,263 $ 13,067,756
Residential Funding Mortgage Securities 1994-S9
6.50% 03/25/24 9,312 9,250,700
------------
TOTAL FIXED RATE MORTGAGE-RELATED
SECURITIES
(Cost $101,349,103) 101,443,916
U.S. TREASURY OBLIGATION............................. 1.4%
U. S. Treasury Note
7.375%
(Cost $10,003,361) 11/15/97 10,000 10,081,250
AGENCY OBLIGATION.................................... 1.0%
Federal Home Loan Bank -- discount note
5.28%
(Cost $7,000,000) 05/01/97 7,000 7,000,000
REPURCHASE AGREEMENTS................................ 5.2%
Lanston (Aubrey G.) & Co., Inc.
5.35% (Agreement dated 04/30/97, to be
repurchased at $23,967,561 on 05/01/97;
collateralized by $25,038,000 U.S. Treasury
Bonds, 6.75%, due 08/15/26. The market value of
the collateral is $24,597,890.)
(Cost $23,964,000) 05/01/97 23,964 23,964,000
Lanston (Aubrey G.) & Co., Inc.
5.35% (Agreement dated 04/30/97, to be
repurchased at $12,571,868 on 05/01/97;
collateralized by $12,182,000 U.S. Treasury
Bonds, 7.25%, due 05/15/16. The market value of
the collateral is $12,897,799.)
(Cost $12,570,000) 05/01/97 12,570 12,570,000
------------
TOTAL REPURCHASE AGREEMENTS
(Cost $36,534,000) 36,534,000
------------
- -------------------------------------------------------------------------------------------------------
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, 1997 (UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PERCENTAGE
OF NET
ASSETS VALUE
<S> <C> <C>
- -------------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS IN SECURITIES...................... 99.5%
(Cost $690,062,194)** $697,722,125
OTHER ASSETS IN EXCESS OF LIABILITIES................ 0.5% 3,688,232
------------
Net Assets applicable to 70,371,413 Shares of Common
Stock issued and outstanding....................... 100.0% $701,410,357
============
Net Asset Value, offering and redemption price per
share ($701,410,357 / 70,371,413) $9.97
======
</TABLE>
- --------------------------------------------------------------------------------
* The interest rates shown are the rates at April 30, 1997.
** Aggregate cost for Federal income tax purposes is identical. At April 30,
1997, the net unrealized appreciation for all securities of $7,659,931
consists of gross unrealized appreciation of $7,970,018 and gross unrealized
depreciation of ($310,087).
See accompanying notes to financial statements.
6
<PAGE> 9
- --------------------------------------------------------------------------------
ASSET MANAGEMENT FUND, INC.
INTERMEDIATE MORTGAGE SECURITIES PORTFOLIO
STATEMENT OF NET ASSETS
APRIL 30, 1997 (UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PERCENTAGE
OF NET PAR
ASSETS MATURITY (000) VALUE
- ------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
FIXED RATE MORTGAGE-RELATED SECURITIES................ 79.1%
Pass Throughs
Federal Home Loan Mortgage Corporation Gold
7.00%, due 07/01/03 $11,403 $11,392,765
7.50%, due 01/01/10 to 07/01/11 28,709 28,978,148
-----------
40,370,913
Federal National Mortgage Association
6.50% 03/01/01 8,405 8,300,012
7.00% 03/01/04 9,963 9,947,251
6.50% 05/01/08 9,758 9,520,613
-----------
27,767,876
-----------
TOTAL FIXED RATE MORTGAGE-
RELATED SECURITIES
(Cost $67,313,557) 68,138,789
U.S. TREASURY OBLIGATIONS............................. 18.4%
U.S. Treasury Notes
6.500% 05/31/01 5,000 4,993,750
6.625% 07/31/01 5,000 5,013,281
5.875% 11/31/01 1,000 973,125
6.625% 03/31/02 1,000 1,002,031
6.250% 02/15/07 4,000 3,869,375
-----------
TOTAL U.S. TREASURY OBLIGATIONS
(Cost $15,796,023) 15,851,562
- ------------------------------------------------------------------------------------------------------
See accompanying notes to financial statements.
</TABLE>
7
<PAGE> 10
- --------------------------------------------------------------------------------
ASSET MANAGEMENT FUND, INC.
INTERMEDIATE MORTGAGE SECURITIES PORTFOLIO (CONTINUED)
STATEMENT OF NET ASSETS
APRIL 30, 1997 (UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PERCENTAGE
OF NET PAR
ASSETS MATURITY (000) VALUE
- ------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
REPURCHASE AGREEMENT.................................. 2.3%
Lanston (Aubrey G.) & Co., Inc.
5.35% (Agreement dated 04/30/97, to be
repurchased at $1,963,292 on 05/01/97;
collateralized by $1,887,000 U.S. Treasury Notes,
8.875%, due 02/01/99. The market value of the
collateral is $2,002,487.)
(Cost $1,963,000) 05/01/97 $ 1,963 $ 1,963,000
-----------
TOTAL INVESTMENTS IN SECURITIES....................... 99.8%
(Cost $85,072,580)* 85,953,351
OTHER ASSETS IN EXCESS OF LIABILITIES................. 0.2% 217,273
-----------
Net Assets applicable to 9,152,406 Shares of Common
Stock issued and outstanding........................ 100.0% $86,170,624
===========
Net Asset Value, offering and redemption price per
share ($86,170,624 / 9,152,406) $9.42
======
</TABLE>
- --------------------------------------------------------------------------------
* Aggregate cost for Federal income tax purposes is $85,089,253. At April 30,
1997, the net and gross unrealized appreciation for all securities is
$864,098.
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, 1997 (UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PERCENTAGE
OF NET PAR
ASSETS MATURITY (000) VALUE
- ------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
FIXED RATE MORTGAGE-RELATED SECURITIES................. 80.2%
Federal National Mortgage Association................ 9.0%
5.25%
(Cost $4,998,707) 08/15/10 $ 5,111 $ 5,004,371
Government National Mortgage Association............. 71.2%
10.00%, due 03/15/19 874 954,679
9.00%, due 11/05/04 to 10/15/21 5,477 5,786,502
7.50%, due 02/15/24 14,068 13,993,430
8.50%, due 06/15/24 3,856 3,983,788
7.00%, due 08/15/23 to 09/15/24 15,150 14,662,359
-----------
(Cost $37,920,829) 39,380,758
-----------
TOTAL FIXED RATE MORTGAGE-
RELATED SECURITIES
(Cost $42,919,536) 44,385,129
U.S. TREASURY OBLIGATIONS.............................. 16.1%
U.S. Treasury Notes
6.625% 07/31/01 5,000 5,013,281
6.250% 02/15/07 4,000 3,869,375
-----------
(Cost $8,877,853) 8,882,656
REPURCHASE AGREEMENT................................... 3.5%
Lanston (Aubrey G.) & Co., Inc.
5.35% (Agreement dated 04/30/97, to be
repurchased at $1,920,285 on 05/01/97;
collateralized by $1,284,000 U.S. Treasury Bonds,
13.875%, due 05/15/11. The market value of the
collateral is $1,968,865.)
(Cost $1,920,000) 05/01/97 1,920 1,920,000
-----------
TOTAL INVESTMENTS IN SECURITIES........................ 99.8%
(Cost $53,717,389)* 55,187,785
OTHER ASSETS IN EXCESS OF LIABILITIES.................. 0.2% 85,069
-----------
Net Assets applicable to 5,325,208 Shares of Common
Stock issued and outstanding......................... 100.0% $55,272,854
===========
Net Asset Value, offering and redemption price per
share ($55,272,854 / 5,325,208) $10.38
=======
</TABLE>
- --------------------------------------------------------------------------------
* Aggregate cost for Federal income tax purposes is $53,726,914. At April 30,
1997, the net and gross unrealized appreciation for all securities is
$1,460,871.
See accompanying notes to financial statements.
9
<PAGE> 12
- --------------------------------------------------------------------------------
ASSET MANAGEMENT FUND, INC.
STATEMENTS OF OPERATIONS
FOR THE SIX MONTHS ENDED APRIL 30, 1997 (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.............. $1,313,888 $ 4,997,499 $24,749,287 $ 3,138,860 $2,084,484
---------- ----------- ----------- ----------- ----------
Operating expenses:
Investment advisory fee.... 37,103 194,268 1,681,101 153,505 69,104
Distribution fee........... 37,103 116,561 933,945 65,788 41,462
Administration fee......... 9,142 27,784 134,282 15,778 10,190
Custodian fee.............. 6,200 18,178 75,226 11,101 14,357
Directors' fees............ 3,403 4,663 21,985 1,944 1,482
Transfer agent fee......... 1,369 2,887 19,878 790 1,325
Legal...................... 2,056 5,042 24,374 3,598 1,654
Audit...................... 2,663 5,302 27,409 1,239 1,746
Other...................... 1,120 4,950 21,860 8,283 4,570
---------- ----------- ----------- ----------- ----------
100,159 379,635 2,940,060 262,026 145,890
Fee waivers................ (37,103) -0- (1,120,734) (43,859) -0-
---------- ----------- ----------- ----------- ----------
Total expenses.......... 63,056 379,635 1,819,326 218,167 145,890
---------- ----------- ----------- ----------- ----------
Net investment income... 1,250,832 4,617,864 22,929,961 2,920,693 1,938,594
---------- ----------- ----------- ----------- ----------
REALIZED AND UNREALIZED GAINS
(LOSSES) FROM INVESTMENT
ACTIVITIES:
Net realized gain (loss)... -0- 5,062 286,067 (134,878) (397,986)
Net change in unrealized
appreciation/depreciation
of investments.......... -0- (1,729,361) 897,897 (904,213) (301,613)
---------- ----------- ----------- ----------- ----------
Net gain (loss) on
investments............. -0- (1,724,299) 1,183,964 (1,039,091) (699,599)
---------- ----------- ----------- ----------- ----------
NET INCREASE IN NET ASSETS
RESULTING FROM OPERATIONS....... $1,250,832 $ 2,893,565 $24,113,925 $ 1,881,602 $1,238,995
========== =========== =========== =========== ==========
- ---------------------------------------------------------------------------------------------------------
See accompanying notes to financial statements.
</TABLE>
10
<PAGE> 13
- --------------------------------------------------------------------------------
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, 1997 OCTOBER 31, APRIL 30, 1997 OCTOBER 31,
(UNAUDITED) 1996 (UNAUDITED) 1996
- ----------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Increase (decrease) in net assets:
Operations:
Net investment income........... $ 1,250,832 $ 3,491,429 $ 4,617,864 $ 10,747,695
Net gain (loss) on
investments................... -0- -0- (1,724,299) (2,534,577)
------------- ------------- ------------ ------------
Net increase in net assets
resulting from
operations................. 1,250,832 3,491,429 2,893,565 8,213,118
------------- ------------- ------------ ------------
Dividends paid to stockholders:
From net investment income...... (1,250,832) (3,491,429) (4,617,864) (10,747,695)
From net realized capital
gains......................... -0- -0- -0- -0-
------------- ------------- ------------ ------------
Total dividends paid to
stockholders............... (1,250,832) (3,491,429) (4,617,864) (10,747,695)
------------- ------------- ------------ ------------
Capital share transactions:
Proceeds from sale of shares.... 255,846,018 756,322,916 5,570,292 44,293,835
Shares issued to stockholders in
reinvestment of dividends..... 1,188,658 2,389,475 2,837,961 5,584,686
Cost of shares repurchased...... (266,939,517) (726,098,039) (65,301,974) (37,795,386)
------------- ------------- ------------ ------------
Net increase (decrease) in net
assets from capital share
transactions............... (9,904,841) 32,614,352 (56,893,721) 12,083,135
------------- ------------- ------------ ------------
Total increase (decrease) in
net assets................. (9,904,841) 32,614,352 (58,618,020) 9,548,558
Net Assets:
Beginning of period................ 69,483,722 36,869,370 176,891,614 167,343,056
------------- ------------- ------------ ------------
End of period...................... $ 59,578,881 $ 69,483,722 $118,273,594 $176,891,614
============= ============= ============ ============
- ----------------------------------------------------------------------------------------------------------
</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, 1997 OCTOBER 31, APRIL 30, 1997 OCTOBER 31, APRIL 30, 1997 OCTOBER 31,
(UNAUDITED) 1996 (UNAUDITED) 1996 (UNAUDITED) 1996
- ---------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
$ 22,929,961 $ 55,040,332 $ 2,920,693 $ 10,923,457 $ 1,938,594 $ 4,158,584
1,183,964 (91,817) (1,039,091) (3,816,169) (699,599) (687,178)
------------- ------------- ----------- ------------- ----------- ------------
24,113,925 54,948,515 1,881,602 7,107,288 1,238,995 3,471,406
------------- ------------- ----------- ------------- ----------- ------------
(22,737,320) (55,040,332) (2,900,029) (10,923,457) (1,925,552) (4,158,584)
-0- -0- -0- -0- -0- -0-
------------- ------------- ----------- ------------- ----------- ------------
(22,737,320) (55,040,332) (2,900,029) (10,923,457) (1,925,552) (4,158,584)
------------- ------------- ----------- ------------- ----------- ------------
123,018,679 547,849,221 3,039,711 11,947,721 -0- 10,233,212
11,888,194 27,868,817 1,274,776 7,021,954 892,905 1,891,769
(230,889,291) (671,148,248) (9,414,612) (109,951,609) (2,200,281) (16,429,514)
------------- ------------- ----------- ------------- ----------- ------------
(95,982,418) (95,430,210) (5,100,125) (90,981,934) (1,307,376) (4,304,533)
------------- ------------- ----------- ------------- ----------- ------------
(94,605,813) (95,522,027) (6,118,552) (94,798,103) (1,993,933) (4,991,711)
796,016,170 891,538,197 92,289,176 187,087,279 57,266,787 62,258,498
------------- ------------- ----------- ------------- ----------- ------------
$ 701,410,357 $ 796,016,170 $86,170,624 $ 92,289,176 $55,272,854 $ 57,266,787
============= ============= =========== ============= =========== ============
- ---------------------------------------------------------------------------------------------------------
See accompanying notes to financial statements.
</TABLE>
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, 1997 ---------------------------------------------------
(UNAUDITED) 1996 1995 1994 1993 1992
<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............. .0251 .0516 .0547 .0346 .0277 .0358
Net realized and unrealized gain
(loss) on investments............ -0- -0- -0- -0- -0- -0-
------- ------- ------- ------- -------- --------
Total from investment
operations................ .0251 .0516 .0547 .0346 .0277 .0358
------- ------- ------- ------- -------- --------
Less distributions:
- --------------------
Dividends paid to stockholders:
From net investment income....... (.0251) (.0516) (.0547) (.0346) (.0277) (.0358)
From net realized gains.......... -0- -0- -0- -0- -0- -0-
------- ------- ------- ------- -------- --------
Total distributions to
stockholders.............. (.0251) (.0516) (.0547) (.0346) (.0277) (.0358)
------- ------- ------- ------- -------- --------
Net asset value, end of period...... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
======= ======= ======= ======= ======== ========
Total return........................ 2.53% 5.29% 5.60% 3.51% 2.80% 3.64%
Ratios/Supplemental data:
- ------------------------------
Net assets, end of period
(in 000's)....................... $59,579 $69,484 $36,869 $82,969 $107,924 $110,090
Ratio of expenses to average net
assets........................... 0.25%(1)(2) 0.24%(1) 0.24%(1) 0.40%(1) 0.40% 0.41%
Ratio of net investment income to
average net assets............... 5.06%(2) 5.15% 5.40% 3.34% 2.77% 3.54%
</TABLE>
- --------------------------------------------------------------------------------
(1) Without fee waivers for the Money Market Portfolio for the six months ended
April 30, 1997 and the years ended October 31, 1996, 1995, and 1994, the
ratios of expenses to average net assets would have been .40% (annualized),
.39%, .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 YEAR ENDED OCTOBER 31,
APRIL 30, 1997 ----------------------------------------------------
(UNAUDITED) 1996 1995 1994 1993 1992
- ---------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of
period............................ $ 10.56 $ 10.68 $ 10.45 $ 10.89 $ 10.85 $ 10.71
-------- -------- -------- -------- -------- --------
Income from investment operations:
- -----------------------------------
Net investment income............ .3096 .6370 .6746 .5396 .6155 .7652
Net realized and unrealized gain
(loss) on investments........... (.1200) (.1200) .2300 (.4400) .0400 .1400
-------- -------- -------- -------- -------- --------
Total from investment
operations............... .1896 .5170 .9046 .0996 .6555 .9052
-------- -------- -------- -------- -------- --------
Less distributions:
- -----------------------------------
Dividends paid to stockholders:
From net investment income.... (.3096) (.6370) (.6746) (.5396) (.6155) (.7652)
From net realized gains....... -0- -0- -0- -0- -0- -0-
-------- -------- -------- -------- -------- --------
Total distributions to
stockholders............. (.3096) (.6370) (.6746) (.5396) (.6155) (.7652)
-------- -------- -------- -------- -------- --------
Net asset value, end of period..... $ 10.44 $ 10.56 $ 10.68 $ 10.45 $ 10.89 $ 10.85
======== ======== ======== ======== ======== ========
Total return....................... 1.82% 4.99% 8.94% 0.95% 6.19% 8.72%
Ratios/Supplemental data:
- -----------------------------------
Net assets, end of period (in
000's).......................... $118,274 $176,892 $167,343 $179,740 $235,705 $213,995
Ratio of expenses to average net
assets........................ 0.49%(1) 0.48% 0.49% 0.47% 0.48% 0.50%
Ratio of net investment income to
average net assets............ 5.94%(1) 6.02% 6.42% 5.04% 5.65% 7.15%
Portfolio turnover rate.......... 54% 69% 112% 195% 110% 43%
</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, 1997 ----------------------------------------------------------------
(UNAUDITED) 1996 1995 1994 1993 1992
- ------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of
period....................... $ 9.95 $ 9.94 $ 9.78 $ 10.02 $ 9.98 $ 10.01
-------- -------- ---------- ---------- ---------- ----------
Income from investment operations:
- ----------------------------------
Net investment income........ .3029 .5958 .6035 .4396 .4267 .5235
Net realized and unrealized
gain (loss) on
investments................ .0173 .0100 .1600 (.2400) .0386 (.0295)
-------- -------- ---------- ---------- ---------- ----------
Total from investment
operations............ .3202 .6058 .7635 .1996 .4653 .4940
-------- -------- ---------- ---------- ---------- ----------
Less distributions:
- ------------------
Dividends paid to
stockholders:
From net investment
income................... (.3002) (.5958) (.6035) (.4396) (.4253) (.5240)
From net realized gains.... -0- -0- -0- -0- -0- -0-
-------- -------- ---------- ---------- ---------- ----------
Total distributions to
stockholders.......... (.3002) (.5958) (.6035) (.4396) (.4253) (.5240)
-------- -------- ---------- ---------- ---------- ----------
Net asset value, end of
period....................... $ 9.97 $ 9.95 $ 9.94 $ 9.78 $ 10.02 $ 9.98
======== ======== ========== ========== ========== ==========
Total return................... 3.16% 6.27% 8.02% 2.04% 4.76% 5.05%
Ratios/Supplemental data:
- ---------------------------
Net assets, end of period (in
000's)..................... $701,410 $796,016 $ 891,538 $1,045,914 $1,572,311 $1,189,309
Ratio of expenses to average
net assets................. 0.49%(1)(2) 0.47%(1) 0.48%(1) 0.47%(1) 0.46%(1) 0.44%(1)
Ratio of net investment
income to average net
assets..................... 6.14%(2) 6.01% 6.12% 4.40% 4.34% 5.14%
Portfolio turnover rate...... 86% 60% 68% 65% 30% 43%
</TABLE>
- --------------------------------------------------------------------------------
(1) Without fee waivers for the Adjustable Rate Mortgage (ARM) Portfolio for the
six months ended April 30, 1997 and the years ended October 31, 1996, 1995,
1994, 1993, and 1992, the ratios of expenses to average net assets would
have been .79% (annualized), .77%, .78%, .76%, .76%, and .80%, 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, 1997 -------------------------------------------------------
(UNAUDITED) 1996 1995 1994 1993 1992
- ---------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of
period........................... $ 9.52 $ 9.68 $ 9.34 $ 10.00 $ 9.80 $ 9.61
------- ------- -------- -------- -------- --------
Income from investment operations:
- -----------------------------------
Net investment income............ .3128 .6101 .6211 .5407 .5982 .7161
Net realized and unrealized gain
(loss) on investments........... (.1023) (.1600) .3400 (.6600) .1987 .1909
------- ------- -------- -------- -------- --------
Total from investment
operations.................. .2105 .4501 .9611 (.1193) .7969 .9070
------- ------- -------- -------- -------- --------
Less distributions:
- --------------------
Dividends paid to stockholders:
From net investment income...... (.3105) (.6101) (.6211) (.5407) (.5969) (.7170)
From net realized gains......... -0- -0- -0- -0- -0- -0-
------- ------- -------- -------- -------- --------
Total distributions to
stockholders................ (.3105) (.6101) (.6211) (.5407) (.5969) (.7170)
------- ------- -------- -------- -------- --------
Net asset value, end of period..... $ 9.42 $ 9.52 $ 9.68 $ 9.34 $ 10.00 $ 9.80
======= ======= ======== ======== ======== ========
Total return....................... 2.24% 4.82% 10.63% (1.18%) 8.33% 9.74%
Ratios/Supplemental data:
- ------------------------------
Net assets, end of period
(in 000's)...................... $86,171 $92,289 $187,087 $213,427 $218,032 $116,458
Ratio of expenses to average net
assets.......................... 0.50%(1)(2) 0.44%(1) 0.38%(1) 0.39%(1) 0.37%(1) 0.43%(1)
Ratio of net investment income to
average net assets.............. 6.66%(2) 6.38% 6.55% 5.61% 5.94% 7.14%
Portfolio turnover rate.......... 78% 133% 133% 358% 106% 226%
</TABLE>
- --------------------------------------------------------------------------------
(1) Without fee waivers for the Intermediate Mortgage Securities Portfolio for
the six months ended April 30, 1997 and the years ended October 31, 1996,
1995, 1994, 1993, and 1992, the ratios of expenses to average net assets
would have been .60% (annualized), .58%, .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 YEAR ENDED OCTOBER 31,
APRIL 30, 1997 -------------------------------------
(UNAUDITED) 1996 1995 1994 1993 1992
- ----------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period..... $ 10.51 $ 10.68 $ 10.23 $ 11.28 $ 11.26 $ 11.29
------- ------- ------- ------- ------- -------
Income from investment operations:
- -----------------------------------------
Net investment income.................. .3631 .7479 .7703 .7296 .8306 .8924
Net realized and unrealized gain (loss)
on investments........................ (.1325) (.1700) .4500 (.9300) .0195 (.0297)
------- ------- ------- ------- ------- -------
Total from investment operations.... .2306 .5779 1.2203 (.2004) .8501 .8627
------- ------- ------- ------- ------- -------
Less distributions:
- -----------------------------------------
Dividends paid to stockholders:
From net investment income............ (.3606) (.7479) (.7703) (.7296) (.8301) (.8927)
From net realized gains............... -0- -0- -0- (.1200) -0- -0-
------- ------- ------- ------- ------- -------
Total distributions to
stockholders...................... (.3606) (.7479) (.7703) (.8496) (.8301) (.8927)
------- ------- ------- ------- ------- -------
Net asset value, end of period........... $ 10.38 $ 10.51 $ 10.68 $ 10.23 $ 11.28 $ 11.26
======= ======= ======= ======= ======= =======
Total return............................. 2.23% 5.63% 12.37% (1.82%) 7.76% 7.91%
Ratios/Supplemental data:
- -----------------------------------------
Net assets, end of period (in 000's)... $55,273 $57,267 $62,258 $60,613 $92,994 $72,505
Ratio of expenses to average net
assets................................ 0.53%(1) 0.52% 0.53% 0.51% 0.51% 0.53%
Ratio of net investment income to
average net assets.................... 7.01%(1) 7.10% 7.39% 6.81% 7.32% 7.91%
Portfolio turnover rate................ 171% 165% 177% 376% 187% 64%
</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, 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 STOCKHOLDERS
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.
18
<PAGE> 21
- --------------------------------------------------------------------------------
ASSET MANAGEMENT FUND, INC.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
(UNAUDITED)
- --------------------------------------------------------------------------------
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 Adviser's 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, 1997. The waiver amounted to $37,103.
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, 1997. The waiver amounted to $747,156.
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, 1997. The waiver amounted to $43,859.
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. (Distributor), which is equally owned by two
general partners, Shay Financial Services, Inc. and ACB Securities, Inc., serves
as the Fund's distributor. Shay Financial Services, Inc. is controlled by Rodger
D. Shay, the President of the Fund. The other half interest in the Distributor
is held by ACB Securities, Inc., an indirect wholly-owned subsidiary of ACB.
As compensation for the Distributor's services, the Fund pays the Distributor
a 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, 1997. The waiver amounted to
$373,578.
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, 1997 and
the year ended October 31, 1996 were as follows:
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MONEY MARKET SHORT U.S. GOVERNMENT
PORTFOLIO SECURITIES PORTFOLIO
--------------------------------------------------------------------------
SIX MONTHS ENDED SIX MONTHS ENDED
APRIL 30, 1997 YEAR ENDED APRIL 30, 1997 YEAR ENDED
(UNAUDITED) OCTOBER 31, 1996 (UNAUDITED) OCTOBER 31, 1996
- --------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Sale of shares..................... 255,846,018 756,322,916 527,881 4,141,919
Shares issued to stockholders in
reinvestment of dividends........ 1,188,658 2,389,475 270,031 527,302
Shares repurchased................. (266,939,517) (726,098,039) (6,230,751) (3,577,207)
------------ ------------ ---------- -----------
Net increase (decrease)............ (9,904,841) 32,614,352 (5,432,839) 1,092,014
Shares outstanding:
Beginning of period.............. 69,483,722 36,869,370 16,758,153 15,666,139
------------ ------------ ---------- -----------
End of period.................... 59,578,881 69,483,722 11,325,314 16,758,153
============ ============ ========== ===========
</TABLE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
ADJUSTABLE RATE MORTGAGE INTERMEDIATE MORTGAGE
(ARM) PORTFOLIO SECURITIES PORTFOLIO
--------------------------------------------------------------------------
SIX MONTHS ENDED SIX MONTHS ENDED
APRIL 30, 1997 YEAR ENDED APRIL 30, 1997 YEAR ENDED
(UNAUDITED) OCTOBER 31, 1996 (UNAUDITED) OCTOBER 31, 1996
- --------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Sale of shares..................... 12,353,911 54,984,099 320,169 1,221,454
Shares issued to stockholders in
reinvestment of dividends........ 1,194,409 2,803,118 134,486 734,670
Shares repurchased................. (23,188,079) (67,489,479) (993,945) (11,588,476)
------------ ------------ ---------- -----------
Net increase (decrease)............ (9,639,759) (9,702,262) (539,290) (9,632,352)
Shares outstanding:
Beginning of period.............. 80,011,172 89,713,434 9,691,696 19,324,048
------------ ------------ ---------- -----------
End of period.................... 70,371,413 80,011,172 9,152,406 9,691,696
============ ============ ========== ===========
</TABLE>
================================================================================
<TABLE>
<CAPTION>
U.S. GOVERNMENT MORTGAGE
SECURITIES PORTFOLIO
------------------------------------
SIX MONTHS ENDED
APRIL 30, 1997 YEAR ENDED
(UNAUDITED) OCTOBER 31, 1996
- --------------------------------------------------------------------------------------------------
<S> <C> <C>
Sale of shares.............................................. 0 950,852
Shares issued to stockholders in reinvestment of
dividends................................................. 85,467 179,409
Shares repurchased.......................................... (209,572) (1,509,780)
--------- ----------
Net increase (decrease)..................................... (124,105) (379,519)
Shares outstanding:
Beginning of period....................................... 5,449,313 5,828,832
--------- ----------
End of period............................................. 5,325,208 5,449,313
========= ==========
</TABLE>
- --------------------------------------------------------------------------------
20
<PAGE> 23
- --------------------------------------------------------------------------------
ASSET MANAGEMENT FUND, INC.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
(UNAUDITED)
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
D. At April 30, 1997, 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........ $59,578,881 $136,963,482 $719,167,600 $103,318,246 $58,143,909
Accumulated net
realized losses...... -0- (19,796,979) (25,609,815) (18,049,057) (4,354,493)
Undistributed net
investment income.... -0- -0- 192,641 20,664 13,042
Net unrealized
appreciation of
investments.......... -0- 1,107,091 7,659,931 880,771 1,470,396
----------- ------------ ------------ ------------ -----------
$59,578,881 $118,273,594 $701,410,357 $ 86,170,624 $55,272,854
=========== ============ ============ ============ ===========
- -------------------------------------------------------------------------------------------------------
</TABLE>
E. For tax purposes at October 31, 1996, the Short U.S. Government Securities
Portfolio had a capital loss carryforward of $19,808,091, of which $8,161,004
expires in 1997, $4,590,496 expires in 1998, $4,615,249 expires in 2002,
$474,531 expires in 2003, and $1,966,811 expires in 2004. The Adjustable Rate
Mortgage (ARM) Portfolio had a capital loss carryforward of $23,440,369, of
which $1,067,764 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 $17,949,222, of which $2,760,938 expires in 1997, $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 $4,097,131, of which $3,336,057 expires in 2002, $731,254
expires in 2003 and $29,820 expires in 2004. All losses are available to offset
future realized capital gains, if any.
- --------------------------------------------------------------------------------
21
<PAGE> 24
- --------------------------------------------------------------------------------
ASSET MANAGEMENT FUND, INC.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
(UNAUDITED)
- --------------------------------------------------------------------------------
F. For the six months ended April 30, 1997, 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............. $39,909,453 $205,971,081 $32,721,805 $45,324,141
Other securities........................ -0- 93,299,489 -0- -0-
----------- ------------ ----------- -----------
Total purchases...................... $39,909,453 $299,270,570 $32,721,805 $45,324,141
=========== ============ =========== ===========
Sales and maturities:
U.S. Government obligations............. $86,786,367 $261,208,381 $37,314,639 $45,715,731
Other securities........................ -0- 126,486,143 -0- -0-
----------- ------------ ----------- -----------
Total sales and maturities........... $86,786,367 $387,694,524 $37,314,639 $45,715,731
=========== ============ =========== ===========
</TABLE>
- --------------------------------------------------------------------------------
22
<PAGE> 25
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
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
888 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.
23
<PAGE> 26
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
DISTRIBUTOR
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, 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
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
