<PAGE> 1
[ASSET MANAGEMENT FUND, INC. LOGO]
ASSET MANAGEMENT FUND, INC.
230 WEST MONROE STREET
CHICAGO, IL 60606
[ASSET MANAGEMENT FUND, INC. LOGO]
ASSET MANAGEMENT FUND, INC.
SEMI-ANNUAL REPORT
APRIL 30, 1999
<PAGE> 2
CHAIRMAN'S MESSAGE
June 7, 1999
Dear AMF Shareholders:
The directors and officers of the Asset Management Fund, Inc. are pleased to
present this semi-annual report for the six months ending April 30, 1999.
We could well frame this report by extracting quotes from our last annual
report (period ending October 31, 1998) and, as well, from our last semi-annual
report (period ending April 30, 1998).
In April of 1998, we wrote "Will the Fed tighten to quell the vigor of the
domestic economy?" and, in October 1998, we commented as follows: "The economy
continued to grow briskly throughout the period and market participants,
including the Fed, were trying to clarify their views."
The same issues remain the primary focus of today's bond market and will
likely remain so in the foreseeable future. The fear that fast economic growth
will cause an inflationary blip sufficient to arouse the Fed is still the topic
du jour. Indeed, the old adage "The more things change, the more they stay the
same," is a pretty accurate description of the bond market's current posture and
recent past.
At some point in time, however, the current stalemate will be resolved. It is
well to remember, as regards the bond market, that long periods of range bond
trading are often a prelude to moves of substantial magnitude and significant
volatility. As we said in April of 1998, "we cannot recall when the battle lines
have been so clearly drawn nor the risks of making the wrong decision so
potentially impactual -- flexibility is the key to success."
This aviso is still appropriate and the AMF portfolios will continue to
monitor the markets and to respond to changing market conditions and perceptions
in a manner consistent with the objectives of our shareholders.
Sincerely,
Rodger D. Shay
Chairman
<PAGE> 3
- --------------------------------------------------------------------------------
ASSET MANAGEMENT FUND, INC.
MONEY MARKET PORTFOLIO
STATEMENT OF NET ASSETS
APRIL 30, 1999 (UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PERCENTAGE
OF NET PAR
ASSETS MATURITY (000) VALUE
<S> <C> <C> <C> <C>
- ------------------------------------------------------------------------------------------------------
AGENCY OBLIGATIONS.................................... 98.0%
Federal Home Loan Bank* -- weekly reset
4.97% 05/05/99 $ 5,000 $ 5,000,000
4.93% 05/05/99 10,000 10,000,000
4.91% 05/05/99 15,000 15,000,000
-----------
30,000,000
Federal Home Loan Bank -- discount notes
4.80% 05/03/99 16,000 15,995,733
4.70% 05/07/99 5,000 4,996,083
4.68% 05/12/99 2,000 1,997,140
-----------
22,988,956
Freddie Mac -- discount notes
4.74% 05/07/99 5,000 4,996,050
Student Loan Marketing Association* -- weekly reset
5.11% 05/04/99 10,000 9,998,881
5.11% 05/04/99 4,980 4,979,380
5.11% 05/04/99 5,000 5,000,000
4.59% 05/04/99 5,000 4,992,056
-----------
24,970,317
-----------
TOTAL AGENCY OBLIGATIONS
(Cost $82,955,323) 82,955,323
REPURCHASE AGREEMENT.................................. 2.0%
ABN Amro Bank
4.83% (Agreement dated 04/30/99, to be
repurchased at $1,682,677 on 05/03/99;
collateralized by $1,636,000 U.S. Treasury
Notes, 7.75%, due 11/30/99. The market value of
the collateral is $1,716,042.)
(Cost $1,682,000) 05/03/99 1,682 1,682,000
-----------
TOTAL INVESTMENTS IN SECURITIES....................... 100.0%
(Cost $84,637,323)** 84,637,323
LIABILITIES IN EXCESS OF OTHER ASSETS................. 0.0% (6,803)
-----------
Net Assets applicable to 84,627,365 Shares of Common
Stock issued and outstanding........................ 100.0% $84,630,520
===========
Net Asset Value, offering and redemption price per
share ($84,630,520 / 84,627,365) $ 1.00
===========
</TABLE>
- --------------------------------------------------------------------------------
* Variable Rate Obligations -- The interest rate shown is the rate at April 30,
1999 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
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ASSET MANAGEMENT FUND, INC.
SHORT U.S. GOVERNMENT SECURITIES PORTFOLIO
STATEMENT OF NET ASSETS
APRIL 30, 1999 (UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PERCENTAGE
OF NET PAR
ASSETS MATURITY (000) VALUE
- --------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
FIXED RATE MORTGAGE-RELATED SECURITIES............. 22.0%
Collateralized Mortgage Obligations
Freddie Mac
5.10% 04/15/17 $ 3,968 $ 3,945,982
5.00% 04/25/19 4,000 3,925,000
------------
7,870,982
Pass Throughs
Fannie Mae
5.50% 03/01/06 2,971 2,928,884
Freddie Mac
5.50% 05/01/03 5,362 5,341,939
5.50% 04/01/06 5,342 5,272,299
6.00% 09/01/13 4,713 4,677,808
6.00% 02/01/14 999 991,981
------------
19,212,911
------------
TOTAL FIXED RATE MORTGAGE-
RELATED SECURITIES
(Cost $27,056,606) 27,083,893
U.S. TREASURY OBLIGATIONS.......................... 61.8%
U.S. Treasury Notes
7.125% 09/30/99 4,000 4,038,750
7.750% 11/30/99 6,000 6,101,250
5.500% 04/15/00 5,000 5,025,000
6.375% 05/15/00 6,000 6,085,313
6.125% 07/31/00 10,000 10,132,812
6.000% 08/15/00 6,000 6,073,125
5.000% 02/28/01 9,000 8,987,344
6.500% 08/31/01 8,000 8,238,750
6.625% 04/30/02 6,000 6,235,312
6.500% 05/31/02 5,000 5,178,125
4.750% 02/15/04 10,000 9,803,125
------------
TOTAL U.S. TREASURY OBLIGATIONS
(Cost $75,064,671) 75,898,906
- --------------------------------------------------------------------------------------------------------
See accompanying notes to financial statements.
</TABLE>
2
<PAGE> 5
- --------------------------------------------------------------------------------
ASSET MANAGEMENT FUND, INC.
SHORT U.S. GOVERNMENT SECURITIES PORTFOLIO (CONTINUED)
STATEMENT OF NET ASSETS
APRIL 30, 1999 (UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PERCENTAGE
OF NET PAR
ASSETS MATURITY (000) VALUE
- --------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
AGENCY OBLIGATIONS................................. 13.8%
Freddie Mac -- discount notes
4.71% 05/07/99 $ 2,000 $ 1,998,430
4.70% 05/07/99 5,000 4,996,083
4.78% 05/14/99 3,000 2,994,822
4.68% 06/04/99 2,000 1,991,160
Freddie Mac
5.00% 02/15/01 5,000 4,976,562
------------
TOTAL AGENCY OBLIGATIONS
(Cost $16,970,303) 16,957,057
REPURCHASE AGREEMENT............................... 3.5%
ABN Amro Bank
4.83% (Agreement dated 04/30/99, to be
repurchased at $4,238,705 on 05/03/99;
collateralized by $4,121,000 U.S. Treasury
Notes, 7.75%, due 11/30/99. The market value
of the collateral is $4,322,620.)
(Cost $4,237,000) 05/03/99 4,237 4,237,000
------------
TOTAL INVESTMENTS IN SECURITIES.................... 101.1%
(Cost $123,328,580)* 124,176,856
LIABILITIES IN EXCESS OF OTHER ASSETS.............. (1.1%) (1,323,261)
------------
Net Assets applicable to 11,702,526 Shares of
Common Stock issued and outstanding.............. 100.0% $122,853,595
============
Net Asset Value, offering and redemption price per
share ($122,853,595 / 11,702,526) $10.50
============
</TABLE>
- --------------------------------------------------------------------------------
* Aggregate cost for Federal income tax purposes is $123,330,763. At April 30,
1999, the net unrealized appreciation for tax purposes for all securities of
$846,093 consists of gross unrealized appreciation of $936,502 and gross
unrealized depreciation of ($90,409).
See accompanying notes to financial statements.
3
<PAGE> 6
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ASSET MANAGEMENT FUND, INC.
ADJUSTABLE RATE MORTGAGE (ARM) PORTFOLIO
STATEMENT OF NET ASSETS
APRIL 30, 1999 (UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PERCENTAGE
OF NET PAR
ASSETS MATURITY (000) VALUE
- -------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
ADJUSTABLE RATE MORTGAGE-RELATED SECURITIES*....... 72.6%
Treasury Based ARMS................................ 39.4%
Fannie Mae
7.16% 07/01/25 $27,863 $ 28,637,555
7.17% 07/01/27 27,201 28,033,605
6.64% 07/01/27 17,510 17,947,670
7.37% 11/01/27 23,462 24,180,922
7.13% 12/01/27 25,745 26,476,797
7.14% 01/01/28 14,898 15,377,631
6.25% 07/01/28 6,875 6,977,928
6.18% 03/01/29 8,278 8,409,948
Freddie Mac
7.16% 05/01/23 7,256 7,434,832
7.22% 10/01/24 16,204 16,599,864
6.86% 03/01/25 7,849 8,006,219
7.14% 03/01/27 24,005 24,695,029
7.13% 03/01/27 20,256 20,775,106
7.14% 09/01/27 31,398 32,340,963
7.20% 01/01/28 14,437 14,756,743
7.16% 04/01/29 21,560 22,180,512
Chase 1990-EA1
6.51% 11/25/20 6,322 6,322,104
Citicorp 1992-18 CL A-1
6.58% 11/25/22 25,418 25,871,166
CMC Securities Corp. 1993-2H A1
7.04% 09/25/23 10,169 10,178,681
Fund America 1993A CL A-1
6.90% 06/25/23 11,068 11,289,184
Housing Securities, Inc. 1992 SL-1 CL A-1
7.34% 05/25/16 16,807 17,237,570
Resolution Trust Corp. Series 1995-2 A-3
6.51% 05/25/29 20,487 20,647,144
--------------
(Cost $389,167,231) 394,377,173
- -------------------------------------------------------------------------------------------------------
See accompanying notes to financial statements.
</TABLE>
4
<PAGE> 7
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ASSET MANAGEMENT FUND, INC.
ADJUSTABLE RATE MORTGAGE (ARM) PORTFOLIO (CONTINUED)
STATEMENT OF NET ASSETS
APRIL 30, 1999 (UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PERCENTAGE
OF NET PAR
ASSETS MATURITY (000) VALUE
- -------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Certificates of Deposit Based ARMS................. 3.5%
Fannie Mae
6.74% 01/01/22 $ 5,845 $ 5,956,851
6.56% 10/01/22 5,416 5,519,071
6.66% 12/01/22 6,961 7,093,524
7.08% 02/01/23 3,971 4,069,150
6.55% 09/01/23 5,660 5,767,839
Sears Mortgage 1992-16
6.65% 10/25/22 6,714 6,713,820
--------------
(Cost $34,716,632) 35,120,255
London Interbank Offering Rate (LIBOR)
Based ARMS....................................... 20.1%
Fannie Mae
5.34% 11/25/23 18,093 18,121,551
5.23% 09/25/28 15,372 15,396,268
Freddie Mac
5.55% 03/15/25 32,904 32,975,594
7.23% 03/01/26 10,783 11,074,559
6.99% 05/01/26 7,798 8,000,301
BA Mortgage Securities, Inc.
5.44% 08/25/28 28,803 28,794,035
Donaldson, Lufkin, Jenrette Acceptance Corp. 1992-6
6.88% 07/25/22 22,088 22,350,406
Donaldson, Lufkin, Jenrette Acceptance Corp. 1992-9
6.60% 11/25/22 17,820 17,987,506
Donaldson, Lufkin, Jenrette Acceptance Corp. 1994-5
7.38% 04/25/24 3,465 3,529,561
MLCC Mortgage Investors, Inc. 1996-C
5.32% 05/15/21 26,482 26,539,758
Morserv Inc. 1996-2 1A1
5.72% 11/25/26 16,486 16,583,520
--------------
(Cost $200,636,374) 201,353,059
- -------------------------------------------------------------------------------------------------------
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, 1999 (UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PERCENTAGE
OF NET PAR
ASSETS MATURITY (000) VALUE
- -------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Cost of Funds Index Based ARMS..................... 9.6%
Fannie Mae
5.65% 02/25/08 $12,728 $ 12,700,023
5.50% 06/25/12 4,000 3,976,250
5.40% 08/25/20 1,179 1,178,432
5.60% 09/25/23 11,439 11,403,403
5.85% 08/01/29 21,249 21,361,444
5.85% 05/01/36 25,314 25,448,496
Freddie Mac
5.51% 12/15/23 16,754 16,722,197
5.50% 02/15/24 3,358 3,350,905
--------------
(Cost $95,729,978) 96,141,150
--------------
TOTAL ADJUSTABLE RATE MORTGAGE-RELATED
SECURITIES
(Cost $720,250,215) 726,991,637
FIXED RATE MORTGAGE-RELATED SECURITIES............. 14.2%
Collateralized Mortgage Obligations
Fannie Mae
5.75% 07/25/05 10,316 10,295,101
5.75% 06/25/06 4,919 4,907,394
6.00% 12/25/15 6,506 6,498,927
Freddie Mac
6.50% 01/15/04 9,682 9,676,153
ABN Amro Mortgage Corp. 1998-1 A3
7.00% 04/25/28 3,563 3,556,566
CMC Securities Corp. 1993-E S5
6.00% 11/25/08 9,551 9,558,749
Prudential Home Mortgage Services 1996-4
6.50% 04/25/26 9,208 9,221,321
Prudential Home Mortgage Services 1996-6
6.00% 05/25/26 5,551 5,543,430
- -------------------------------------------------------------------------------------------------------
See accompanying notes to financial statements.
</TABLE>
6
<PAGE> 9
- --------------------------------------------------------------------------------
ASSET MANAGEMENT FUND, INC.
ADJUSTABLE RATE MORTGAGE (ARM) PORTFOLIO (CONTINUED)
STATEMENT OF NET ASSETS
APRIL 30, 1999 (UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PERCENTAGE
OF NET PAR
ASSETS MATURITY (000) VALUE
- -------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Pass Throughs
Fannie Mae
5.50% 04/01/06 $ 9,985 $ 9,844,826
5.50% 05/01/06 10,000 9,859,375
Freddie Mac
7.00% 03/01/12 6,392 6,537,758
6.30% 06/25/13 12,859 12,863,423
6.00% 08/01/13 9,440 9,369,617
6.00% 09/01/13 7,486 7,429,459
5.50% 11/01/13 1,937 1,883,402
5.50% 12/01/13 5,835 5,672,690
6.00% 02/01/14 9,995 9,919,809
8.00% 06/01/14 2,871 2,942,579
9.25% 01/01/17 4,173 4,449,495
10.50% 12/01/20 2,410 2,636,867
--------------
TOTAL FIXED RATE MORTGAGE-RELATED
SECURITIES
(Cost $142,198,523) 142,666,941
U.S. TREASURY OBLIGATIONS.......................... 3.4%
U.S. Treasury Notes
5.00% 02/28/01 26,000 25,963,437
4.75% 02/15/04 8,000 7,840,000
--------------
TOTAL U.S. TREASURY OBLIGATIONS
(Cost $33,848,222) 33,803,437
AGENCY OBLIGATIONS................................. 8.0%
Federal Home Loan Bank -- discount notes
4.70% 05/07/99 25,000 24,980,417
4.68% 05/14/99 25,000 24,957,750
Freddie Mac -- discount notes
4.70% 05/12/99 30,000 29,956,917
--------------
TOTAL AGENCY OBLIGATIONS
(Cost $79,895,084) 79,895,084
- -------------------------------------------------------------------------------------------------------
See accompanying notes to financial statements.
</TABLE>
7
<PAGE> 10
- --------------------------------------------------------------------------------
ASSET MANAGEMENT FUND, INC.
ADJUSTABLE RATE MORTGAGE (ARM) PORTFOLIO (CONTINUED)
STATEMENT OF NET ASSETS
APRIL 30, 1999 (UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PERCENTAGE
OF NET PAR
ASSETS MATURITY (000) VALUE
- -------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
REPURCHASE AGREEMENT............................... 1.5%
ABN Amro Bank
4.83% (Agreement dated 04/30/99, to be
repurchased at $15,661,301 on 05/03/99;
collateralized by $15,225,000 U.S. Treasury
Notes, 7.75%, due 11/30/99. The market value
of the collateral is $15,969,885.)
(Cost $15,655,000) 05/03/99 $15,655 $ 15,655,000
--------------
TOTAL INVESTMENTS IN SECURITIES.................... 99.7%
(Cost $991,847,044)** 999,012,099
OTHER ASSETS IN EXCESS OF LIABILITIES.............. 0.3% 2,504,392
--------------
Net Assets applicable to 100,839,722 Shares of
Common Stock issued and outstanding.............. 100.0% $1,001,516,491
==============
Net Asset Value, offering and redemption price per
share ($1,001,516,491 / 100,839,722) $9.93
==============
</TABLE>
- --------------------------------------------------------------------------------
* The interest rates shown are the rates at April 30, 1999.
** Aggregate cost for Federal income tax purposes is $991,853,173. At April 30,
1999, the net unrealized appreciation for tax purposes for all securities of
$7,158,926 consists of gross unrealized appreciation of $7,503,316 and gross
unrealized depreciation of ($344,390).
See accompanying notes to financial statements.
8
<PAGE> 11
- --------------------------------------------------------------------------------
ASSET MANAGEMENT FUND, INC.
INTERMEDIATE MORTGAGE SECURITIES PORTFOLIO
STATEMENT OF NET ASSETS
APRIL 30, 1998 (UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PERCENTAGE
OF NET PAR
ASSETS MATURITY (000) VALUE
- ------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
ADJUSTABLE RATE MORTGAGE-RELATED SECURITY*........... 4.1%
Fannie Mae
6.64% 07/01/27 $ 4,295 $ 4,402,078
(Cost $4,342,639)
FIXED RATE MORTGAGE-RELATED SECURITIES............... 78.3%
Collateralized Mortgage Obligations
Freddie Mac
5.00% 04/25/19 4,000 3,925,000
ABN Amro Mortgage Corp. 1998-1 A3
7.00% 04/25/28 950 948,417
------------
4,873,417
Pass Throughs
Fannie Mae
6.50% 05/01/08 6,194 6,252,475
7.00% 04/01/12 1,813 1,844,026
------------
8,096,501
Freddie Mac Gold
6.00% 04/01/05 4,391 4,393,267
5.75% 04/15/08 1,000 990,938
7.50%, due 01/01/10 to 07/01/11 14,605 15,080,027
6.50%, due 02/01/12 to 10/01/12 20,772 20,992,751
5.50%, due 04/01/06 to 12/01/13 10,344 10,137,088
6.00%, due 02/01/13 to 01/01/14 19,543 19,397,538
------------
70,991,609
------------
TOTAL FIXED RATE MORTGAGE-
RELATED SECURITIES
(Cost $82,892,063) 83,961,527
U.S. TREASURY OBLIGATIONS............................ 13.0%
U.S. Treasury Notes
5.000% 02/28/01 7,000 6,990,156
5.375% 06/30/03 2,000 2,009,063
4.750% 02/15/04 2,000 1,960,625
6.625% 05/15/07 1,000 1,077,344
4.750% 11/15/08 2,000 1,911,562
------------
TOTAL U.S. TREASURY OBLIGATIONS
(Cost $13,899,157) 13,948,750
- ------------------------------------------------------------------------------------------------------
See accompanying notes to financial statements.
</TABLE>
9
<PAGE> 12
- --------------------------------------------------------------------------------
ASSET MANAGEMENT FUND, INC.
INTERMEDIATE MORTGAGE SECURITIES PORTFOLIO (CONTINUED)
STATEMENT OF NET ASSETS
APRIL 30, 1998 (UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PERCENTAGE
OF NET PAR
ASSETS MATURITY (000) VALUE
- ------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
AGENCY OBLIGATION.................................... 1.9%
Freddie Mac -- discount notes
4.70% 05/07/99 $ 2,000 $ 1,998,433
(Cost $1,998,433)
REPURCHASE AGREEMENT................................. 3.5%
ABN Amro Bank
4.83% (Agreement dated 04/30/99, to be
repurchased at $3,781,521 on 05/03/99;
collateralized by $3,676,000 U.S. Treasury
Notes, 7.75%, due 11/30/99. The market value of
the collateral is $3,855,849.)
(Cost $3,780,000) 05/03/99 3,780 3,780,000
------------
TOTAL INVESTMENTS IN SECURITIES...................... 100.8%
(Cost $106,912,293)** 108,090,788
LIABILITIES IN EXCESS OF OTHER ASSETS................ (0.8%) (845,514)
------------
Net Assets applicable to 11,193,543 Shares of Common
Stock issued and outstanding....................... 100.0% $107,245,274
============
Net Asset Value, offering and redemption price per
share ($107,245,274 / 11,193,543) $ 9.58
============
</TABLE>
- --------------------------------------------------------------------------------
* The interest rate shown is the rate at April 30, 1999.
** Aggregate cost for Federal income tax purposes is $106,922,870. At April 30,
1999, the net unrealized appreciation for tax purposes for all securities of
$1,167,918 consists of gross unrealized appreciation of $1,335,556 and gross
unrealized depreciation of ($167,638).
See accompanying notes to financial statements.
10
<PAGE> 13
- --------------------------------------------------------------------------------
ASSET MANAGEMENT FUND, INC.
U.S. GOVERNMENT MORTGAGE SECURITIES PORTFOLIO
STATEMENT OF NET ASSETS
APRIL 30, 1999 (UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PERCENTAGE
OF NET PAR
ASSETS MATURITY (000) VALUE
- ------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
FIXED RATE MORTGAGE-RELATED SECURITIES................. 81.0%
Collateralized Mortgage Obligation
CMC Securities Corp. 1993-E S5
6.00% 11/25/08 $ 2,047 $ 2,048,304
Pass Throughs
Fannie Mae
5.50% 01/01/06 4,459 4,396,702
Freddie Mac
5.50% 04/01/06 5,495 5,422,675
6.00% 03/01/13 4,516 4,482,273
6.00% 04/01/13 4,626 4,591,483
6.00% 08/01/13 3,767 3,738,961
5.50% 10/01/13 1,974 1,918,731
5.50% 11/01/13 1,937 1,883,402
-----------
22,037,525
Government National Mortgage Association
9.00%, due 11/15/04 to 10/15/21 3,213 3,431,879
10.00% 03/15/19 340 367,089
7.50% 02/15/24 9,935 10,242,439
8.50% 06/15/24 896 947,139
7.00% 04/15/27 13,189 13,390,477
7.50% 06/15/27 2,784 2,870,243
6.00% 04/15/28 4,845 4,695,047
6.00% 06/15/28 2,947 2,856,228
6.00% 11/15/28 3,951 3,828,498
-----------
42,629,039
-----------
TOTAL FIXED RATE MORTGAGE-RELATED SECURITIES
(Cost $69,643,857) 71,111,570
U.S. TREASURY OBLIGATIONS.............................. 12.3%
U.S. Treasury Notes
6.25% 08/31/02 2,000 2,059,688
5.50% 05/31/03 2,000 2,016,875
4.75% 11/15/08 4,000 3,823,750
4.75% 02/15/14 3,000 2,940,937
-----------
TOTAL U.S. TREASURY OBLIGATIONS
(Cost $10,807,377) 10,841,250
- ------------------------------------------------------------------------------------------------------
See accompanying notes to financial statements.
</TABLE>
11
<PAGE> 14
- --------------------------------------------------------------------------------
ASSET MANAGEMENT FUND, INC.
U.S. GOVERNMENT MORTGAGE SECURITIES PORTFOLIO (CONTINUED)
STATEMENT OF NET ASSETS
APRIL 30, 1999 (UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PERCENTAGE
OF NET PAR
ASSETS MATURITY (000) VALUE
- ------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
AGENCY OBLIGATION...................................... 3.4%
Freddie Mac -- discount notes
4.70%
(Cost $2,997,650) 05/07/99 $ 3,000 $ 2,997,650
REPURCHASE AGREEMENT................................... 4.3%
ABN Amro Bank
4.83% (Agreement dated 04/30/99, to be
repurchased at $3,734,503 on 05/03/99;
collateralized by $3,631,000 U.S. Treasury Notes,
7.75%, due 11/30/99. The market value of the
collateral is $3,808,647.)
(Cost $3,733,000) 05/03/99 3,733 3,733,000
-----------
TOTAL INVESTMENTS IN SECURITIES........................ 101.0%
(Cost $87,181,884)* 88,683,470
LIABILITIES IN EXCESS OF OTHER ASSETS.................. (1.0%) (887,049)
-----------
Net Assets applicable to 8,295,793 Shares of Common
Stock issued and outstanding......................... 100.0% $87,796,421
===========
Net Asset Value, offering and redemption price per
share ($87,796,421 / 8,295,793) $ 10.58
===========
</TABLE>
- --------------------------------------------------------------------------------
* Aggregate cost for Federal income tax purposes is $87,184,951. At April 30,
1999, the net unrealized appreciation for tax purposes for all securities of
$1,498,519 consists of gross unrealized appreciation of $1,808,416 and gross
unrealized depreciation of ($309,897).
See accompanying notes to financial statements.
12
<PAGE> 15
- --------------------------------------------------------------------------------
ASSET MANAGEMENT FUND, INC.
STATEMENTS OF OPERATIONS
FOR THE SIX MONTHS ENDED APRIL 30, 1999 (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.............. $1,911,542 $3,584,385 $27,759,019 $3,254,264 $2,880,771
---------- ----------- ----------- ----------- ----------
Operating expenses:
Investment advisory fee.... 57,544 150,592 2,121,512 181,904 108,262
Distribution fee........... 57,544 90,355 1,178,618 77,959 64,957
Administration fee......... 13,295 19,714 157,229 17,517 15,205
Custodian fee.............. 9,629 14,666 95,382 13,104 22,026
Legal fees................. 5,426 4,657 77,296 3,149 12,058
Transfer agent fee......... 2,581 9,560 6,279 3,108 2,374
Directors' fees............ 2,863 3,459 31,626 2,249 11,293
Audit...................... 885 5,101 38,238 3,164 6,599
Other...................... 3,889 5,629 39,972 4,528 9,412
---------- ----------- ----------- ----------- ----------
153,656 303,733 3,746,152 306,682 252,186
Fee waivers................ (57,544) -0- (1,414,342) (51,972) -0-
---------- ----------- ----------- ----------- ----------
Total expenses.......... 96,112 303,733 2,331,810 254,710 252,186
---------- ----------- ----------- ----------- ----------
Net investment income... 1,815,430 3,280,652 25,427,209 2,999,554 2,628,585
---------- ----------- ----------- ----------- ----------
REALIZED AND UNREALIZED GAINS
(LOSSES) FROM INVESTMENT
ACTIVITIES:
Net realized gain (loss)..... -0- 49,190 (1,478,389) (28,597) (25,797)
Net change in unrealized
appreciation/depreciation
of investments............. -0- (1,962,237) 3,679,042 (877,278) (1,222,531)
---------- ----------- ----------- ----------- ----------
Net gain (loss) on
investments........... -0- (1,913,047) 2,200,653 (905,875) (1,248,328)
---------- ----------- ----------- ----------- ----------
NET INCREASE IN NET ASSETS
RESULTING FROM OPERATIONS....... $1,815,430 $1,367,605 $27,627,862 $2,093,679 $1,380,257
========== =========== =========== =========== ==========
</TABLE>
See accompanying notes to financial statements.
13
<PAGE> 16
- --------------------------------------------------------------------------------
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, 1999 OCTOBER 31, APRIL 30, 1999 OCTOBER 31,
(UNAUDITED) 1998 (UNAUDITED) 1998
- ----------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Increase in net assets:
Operations:
Net investment income........... $ 1,815,430 $ 3,069,291 $ 3,280,652 $ 6,406,087
Net realized gain/(loss)........ -0- 3,155 49,190 410,614
Net change in unrealized
appreciation/depreciation of
investments................... -0- -0- (1,962,237) 859,220
------------- ------------- ------------ ------------
Net increase in net assets
resulting from operations....... 1,815,430 3,072,446 1,367,605 7,675,921
------------- ------------- ------------ ------------
Dividends paid to stockholders:
From net investment income...... (1,815,430) (3,069,291) (3,274,801) (6,406,087)
In excess of net investment
income........................ -0- -0- -0- -0-
------------- ------------- ------------ ------------
Total dividends paid to
stockholders............... (1,815,430) (3,069,291) (3,274,801) (6,406,087)
------------- ------------- ------------ ------------
Capital share transactions:
Proceeds from sale of shares.... 421,060,885 579,105,309 26,778,059 35,353,289
Shares issued to stockholders in
reinvestment of dividends..... 1,415,280 2,507,356 2,298,296 4,240,979
Cost of shares repurchased...... (396,290,411) (571,275,124) (18,556,042) (38,927,316)
------------- ------------- ------------ ------------
Net increase in net assets
from capital share
transactions............... 26,185,754 10,337,541 10,520,313 666,952
------------- ------------- ------------ ------------
Total increase in net
assets..................... 26,185,754 10,340,696 8,613,117 1,936,786
Net Assets:
Beginning of period................ 58,444,766 48,104,070 114,240,478 112,303,692
------------- ------------- ------------ ------------
End of period...................... $ 84,630,520 $ 58,444,766 $122,853,595 $114,240,478
============= ============= ============ ============
- ----------------------------------------------------------------------------------------------------------
</TABLE>
See accompanying notes to financial statements.
14
<PAGE> 17
- --------------------------------------------------------------------------------
<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, 1999 OCTOBER 31, APRIL 30, 1999 OCTOBER 31, APRIL 30, 1999 OCTOBER 31,
(UNAUDITED) 1998 (UNAUDITED) 1998 (UNAUDITED) 1998
- -------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
$ 25,427,209 $ 48,173,900 $ 2,999,554 $ 5,585,457 $ 2,628,585 $ 4,476,426
(1,478,389) (1,301,927) (28,597) 545,001 (25,797) 439,413
3,679,042 (5,972,441) (877,278) 97,888 (1,222,531) 98,398
-------------- ------------- ------------ ----------- ----------- ------------
27,627,862 40,899,532 2,093,679 6,228,346 1,380,257 5,014,237
-------------- ------------- ------------ ----------- ----------- ------------
(25,235,756) (48,173,900) (2,978,337) (5,585,457) (2,610,509) (4,476,426)
-0- -0- -0- (297,387) -0- (136,992)
-------------- ------------- ------------ ----------- ----------- ------------
(25,235,756) (48,173,900) (2,978,337) (5,882,844) (2,610,509) (4,613,418)
-------------- ------------- ------------ ----------- ----------- ------------
241,169,480 442,702,401 26,746,482 26,122,562 14,673,397 38,684,773
15,376,017 28,898,086 1,647,262 2,835,707 1,355,110 2,328,362
(152,970,837) (320,110,598) (19,702,238) (7,847,475) (7,175,510) (14,812,400)
-------------- ------------- ------------ ----------- ----------- ------------
103,574,660 151,489,889 8,691,506 21,110,794 8,852,997 26,200,735
-------------- ------------- ------------ ----------- ----------- ------------
105,966,766 144,215,521 7,806,848 21,456,296 7,622,745 26,601,554
895,549,725 751,334,204 99,438,426 77,982,130 80,173,676 53,572,122
-------------- ------------- ------------ ----------- ----------- ------------
$1,001,516,491 $ 895,549,725 $107,245,274 $99,438,426 $87,796,421 $ 80,173,676
============== ============= ============ =========== =========== ============
</TABLE>
See accompanying notes to financial statements.
15
<PAGE> 18
- --------------------------------------------------------------------------------
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, 1999 -------------------------------------------------
(UNAUDITED) 1998 1997 1996 1995 1994
<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............... .0235 .0523 .0513 .0516 .0547 .0346
Net realized and unrealized gain
(loss) on investments............ -0- -0- -0- -0- -0- -0-
------- ------- ------- ------- ------- -------
Total from investment
operations.................. .0235 .0523 .0513 .0516 .0547 .0346
------- ------- ------- ------- ------- -------
Less distributions:
- --------------------
Dividends paid to stockholders from
net investment income............ (.0235) (.0523) (.0513) (.0516) (.0547) (.0346)
------- ------- ------- ------- ------- -------
Net asset value, end of period........ $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
======= ======= ======= ======= ======= =======
Total return.......................... 2.37% 5.35% 5.25% 5.29% 5.60% 3.51%
Ratios/Supplemental data:
- -----------------------------
Net assets, end of period (in
000's)........................... $84,631 $58,445 $48,104 $69,484 $36,869 $82,969
Ratio of expenses to average net
assets........................... 0.25%(1)(2) 0.25%(1) 0.26%(1) 0.24%(1) 0.24%(1) 0.40%(1)
Ratio of net investment income to
average net assets............... 4.73%(2) 5.22% 5.14% 5.15% 5.40% 3.34%
- -----------------------------------------------------------------------------------------------------------
</TABLE>
(1) Without fee waivers for the Money Market Portfolio for the six months ended
April 30, 1999 and the years ended October 31, 1998, 1997, 1996, 1995, and
1994, the ratios of expenses to average net assets would have been .40%
(annualized), .40%, .41%, .39%, .39%, and .42%, respectively.
(2) Annualized.
See accompanying notes to financial statements.
16
<PAGE> 19
- --------------------------------------------------------------------------------
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, 1999 ----------------------------------------------------
(UNAUDITED) 1998 1997 1996 1995 1994
- ----------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of
period............................. $ 10.66 $ 10.55 $ 10.56 $ 10.68 $ 10.45 $ 10.89
-------- -------- -------- -------- -------- --------
Income from investment operations:
- ----------------------------------
Net investment income............. .2850 .6144 .6273 .6370 .6746 .5396
Net realized and unrealized gain
(loss) on investments............ (.1605) .1100 (.0100) (.1200) .2300 (.4400)
-------- -------- -------- -------- -------- --------
Total from investment
operations................ .1245 .7244 .6173 .5170 .9046 .0996
-------- -------- -------- -------- -------- --------
Less distributions:
- ------------------
Dividends paid to stockholders
from net investment income....... (.2845) (.6144) (.6273) (.6370) (.6746) (.5396)
-------- -------- -------- -------- -------- --------
Net asset value, end of period...... $ 10.50 $ 10.66 $ 10.55 $ 10.56 $ 10.68 $ 10.45
======== ======== ======== ======== ======== ========
Total return........................ 1.19% 7.08% 6.04% 4.99% 8.94% 0.95%
Ratios/Supplemental data:
- ------------------------
Net assets, end of period
(in 000's)..................... $122,854 $114,240 $112,304 $176,892 $167,343 $179,740
Ratio of expenses to average net
--------------------------------
assets........................... 0.50%(1) 0.50% 0.50% 0.48% 0.49% 0.47%
Ratio of net investment income to
average net assets............... 5.45%(1) 5.83% 5.97% 6.02% 6.42% 5.04%
Portfolio turnover rate........... 71% 84% 75% 69% 112% 195%
</TABLE>
- --------------------------------------------------------------------------------
(1) Annualized.
See accompanying notes to financial statements.
17
<PAGE> 20
- --------------------------------------------------------------------------------
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, 1999 ----------------------------------------------------------
(UNAUDITED) 1998 1997 1996 1995 1994
- ------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of
period........................... $ 9.91 $ 9.99 $ 9.95 $ 9.94 $ 9.78 $ 10.02
---------- -------- -------- -------- -------- ----------
Income from investment operations:
- ------------------------------------
Net investment income............ .2648 .5676 .6036 .5958 .6035 .4396
Net realized and unrealized gain
(loss) on investments.......... .0181 (.0800) .0400 .0100 .1600 (.2400)
---------- -------- -------- -------- -------- ----------
Total from investment
operations................ .2829 .4876 .6436 .6058 .7635 .1996
---------- -------- -------- -------- -------- ----------
Less distributions:
- ------------------
Dividends paid to stockholders
from net investment income..... (.2629) (.5676) (.6036) (.5958) (.6035) (.4396)
---------- -------- -------- -------- -------- ----------
Net asset value, end of period..... $ 9.93 $ 9.91 $ 9.99 $ 9.95 $ 9.94 $ 9.78
========== ======== ======== ======== ======== ==========
Total return....................... 2.81% 5.00% 6.65% 6.27% 8.02% 2.04%
Ratios/Supplemental data:
- ------------------------
Net assets, end of period (in
000's)......................... $1,001,516 $895,550 $751,334 $796,016 $891,538 $1,045,914
Ratio of expenses to average net
assets......................... 0.49%(1)(2) 0.49%(1) 0.49%(1) 0.47%(1) 0.48%(1) 0.47%(1)
Ratio of net investment income to
average net assets............. 5.39%(2) 5.70% 6.07% 6.01% 6.12% 4.40%
Portfolio turnover rate.......... 15% 53% 74% 60% 68% 65%
</TABLE>
- --------------------------------------------------------------------------------
(1) Without fee waivers for the Adjustable Rate Mortgage (ARM) Portfolio for the
six months ended April 30, 1999 and the years ended October 31, 1998, 1997,
1996, 1995, and 1994, the ratios of expenses to average net assets would
have been .79% (annualized), .79%, .79%, .77%, .78%, and .76%, respectively.
(2) Annualized.
See accompanying notes to financial statements.
18
<PAGE> 21
- --------------------------------------------------------------------------------
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, 1999 --------------------------------------------------
(UNAUDITED) 1998 1997 1996 1995 1994
- ---------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of
period............................ $ 9.66 $ 9.62 $ 9.52 $ 9.68 $ 9.34 $ 10.00
-------- ------- ------- -------- -------- --------
Income from investment operations:
- ------------------------------------
Net investment income............. .2751 .5932 .6245 .6101 .6211 .5407
Net realized and unrealized gain
(loss) on investments.......... (.0820) .0761 .1000 (.1600) .3400 (.6600)
-------- ------- ------- -------- -------- --------
Total from investment
operations................... .1931 .6693 .7245 .4501 .9611 (.1193)
-------- ------- ------- -------- -------- --------
Less distributions:
- --------------------
Dividends paid to stockholders:
From net investment income..... (.2731) (.5932) (.6245) (.6101) (.6211) (.5407)
In excess of net investment
income........................ -0- (.0361) -0- -0- -0- -0-
-------- ------- ------- -------- -------- --------
Total distributions to
stockholders................ (.2731) (.6293) (.6245) (.6101) (.6211) (.5407)
-------- ------- ------- -------- -------- --------
Net asset value, end of period...... $ 9.58 $ 9.66 $ 9.62 $ 9.52 $ 9.68 $ 9.34
======== ======= ======= ======== ======== ========
Total return........................ 2.02% 7.18% 7.90% 4.82% 10.63% (1.18%)
Ratios/Supplemental data:
- ------------------------------
Net assets, end of period (in
000's)......................... $107,245 $99,438 $77,982 $ 92,289 $187,087 $213,427
Ratio of expenses to average net
assets......................... 0.49%(1)(2) 0.49%(1) 0.49%(1) 0.44%(1) 0.38%(1) 0.39%(1)
Ratio of net investment income to
average net assets............. 5.77%(2) 6.17% 6.58% 6.38% 6.55% 5.61%
Portfolio turnover rate........... 54% 69% 120% 133% 133% 358%
- ---------------------------------------------------------------------------------------------------------
</TABLE>
(1) Without fee waivers for the Intermediate Mortgage Securities Portfolio for
the six months ended April 30, 1999 and the years ended October 31, 1998,
1997, 1996, 1995, and 1994, the ratios of expenses to average net assets
would have been .59% (annualized), .59%, .59%, .58%, .58%, and .59%,
respectively.
(2) Annualized.
See accompanying notes to financial statements.
19
<PAGE> 22
- --------------------------------------------------------------------------------
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, 1999 -----------------------------------------------
(UNAUDITED) 1998 1997 1996 1995 1994
- ----------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period..... $ 10.73 $ 10.67 $ 10.51 $ 10.68 $ 10.23 $ 11.28
------- ------- ------- ------- ------- -------
Income from investment operations:
Net investment income.................. .3204 .6947 .7344 .7479 .7703 .7296
Net realized and unrealized gain (loss)
on investments........................ (.1522) .0877 .1600 (.1700) .4500 (.9300)
------- ------- ------- ------- ------- -------
Total from investment
operations..................... .1682 .7824 .8944 .5779 1.2203 (.2004)
------- ------- ------- ------- ------- -------
Less distributions:
Dividends paid to stockholders:
From net investment income.......... (.3182) (.6947) (.7344) (.7479) (.7703) (.7296)
In excess of net investment
income............................ -0- (.0277) -0- -0- -0- -0-
From net realized gains............. -0- -0- -0- -0- -0- (.1200)
------- ------- ------- ------- ------- -------
Total distributions to
stockholders................... (.3182) (.7224) (.7344) (.7479) (.7703) (.8496)
------- ------- ------- ------- ------- -------
Net asset value, end of period........... $ 10.58 $ 10.73 $ 10.67 $ 10.51 $ 10.68 $ 10.23
======= ======= ======= ======= ======= =======
Total return............................. 1.59% 7.58% 8.87% 5.63% 12.37% (1.82%)
Ratios/Supplemental data:
Net assets, end of period (in 000's)... $87,796 $80,174 $53,572 $57,267 $62,258 $60,613
Ratio of expenses to average net
assets.............................. 0.58%(1) 0.53% 0.53% 0.52% 0.53% 0.51%
Ratio of net investment income to
average net assets.................... 6.07%(1) 6.48% 7.01% 7.10% 7.39% 6.81%
Portfolio turnover rate................ 86% 93% 135% 165% 177% 376%
</TABLE>
- --------------------------------------------------------------------------------
(1) Annualized.
See accompanying notes to financial statements.
20
<PAGE> 23
- --------------------------------------------------------------------------------
ASSET MANAGEMENT FUND, INC.
NOTES TO FINANCIAL STATEMENTS
APRIL 30, 1999 (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. For certain mortgage
related securities the Board of Directors has approved the use of a matrix
developed by Shay Assets Management, Inc. (Adviser) which the Board believes
reflects the fair value of such securities. Portfolio securities for which
market quotations are not readily available are valued at fair value using
methods determined in good faith by the Board of Directors. Short-term
instruments maturing within 60 days of the valuation date are valued based upon
their amortized cost.
REPURCHASE AGREEMENTS
Eligible portfolio investments may be purchased from financial institutions,
such as banks and non-bank dealers, subject to the seller's agreement to
repurchase them at an agreed upon date and price. The seller will be required on
a daily basis to maintain the value of the securities subject to the agreements
at not less than the repurchase price. Repurchase agreements are conditioned
upon the collateral being deposited under the Federal Reserve book-entry system
or with the Fund's custodian.
DIVIDENDS TO SHAREHOLDERS
Dividends from net investment income are declared daily and paid monthly. Net
short-term and long-term capital gains, if any, are declared and paid annually.
FEDERAL TAXES
No provision is made for Federal taxes as it is each Portfolio's intention to
continue to qualify as a regulated investment company and to make the requisite
distributions to the stockholders, which will be sufficient to relieve each
Portfolio from all or substantially all Federal income and excise taxes.
MANAGEMENT ESTIMATES
The preparation of financial statements in conformity with generally accepted
accounting principles requires management to make estimates and assumptions that
affect the reported amounts of assets and liabilities at the date of the
financial statements and the reported amounts of revenues and expenses during
the reporting period. Actual results could differ from these estimates.
OTHER
Investment transactions are accounted for on the trade date and the cost of
investments sold is determined by use of the specific identification method for
both financial reporting and income tax purposes.
21
<PAGE> 24
- --------------------------------------------------------------------------------
ASSET MANAGEMENT FUND, INC.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
APRIL 30, 1999 (UNAUDITED)
- --------------------------------------------------------------------------------
B. Effective December 8, 1997, Shay Assets Management, Inc. (Adviser) (SAMI)
became the investment adviser to the Fund. The Adviser is a wholly-owned
subsidiary of Shay Investment Services, Inc. (SISI), which is controlled by
Rodger D. Shay, the Chairman of the Board of Directors of the Fund. Prior to
December 8, 1997, the investment adviser was Shay Assets Management Co. (SAMC),
a general partnership that consisted of two general partners, SAMI and ACB
Assets Management, Inc. (ACBAM). ACBAM is an indirect wholly-owned subsidiary of
America's Community Bankers.
On December 8, 1997, SAMI purchased ACBAM's 50% interest in SAMC; SAMC was
dissolved and its business (including investment advisory functions to the
Fund), assets, and liabilities were transferred to SAMI. In anticipation of this
transaction, the shareholders of the Fund approved a new investment advisory
agreement between the Fund and SAMI on October 31, 1997. The terms of the new
investment advisory agreement, including the duties, obligations, and
compensation of the investment adviser, are substantially the same as those in
the prior investment advisory agreement between the Fund and SAMC.
SAMI and SISI paid all of the costs incurred by the Fund in connection with
the above transaction, including preparation and distribution of proxy materials
to shareholders, meetings of the Fund's shareholders and Board of Directors,
legal fees, and other fees and expenses.
As compensation for investment advisory services, the Fund pays an investment
advisory fee monthly based upon an annual percentage of the average daily net
assets of each Portfolio as follows:
The fee rate for the Money Market Portfolio is .15% of the first $500 million,
.125% of the next $500 million, and .10% of such net assets in excess of $1
billion. The Adviser voluntarily waived 100% of its fee for the six months ended
April 30, 1999. The waiver amounted to $57,544.
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, 1999. The waiver amounted to $942,895.
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, 1999. The waiver amounted to $51,972.
The Adviser has agreed to reduce or waive (but not below zero) its advisory
fees charged to each Portfolio, except the Adjustable Rate Mortgage (ARM)
Portfolio, to the extent that the daily ratio of operating expenses to average
daily net assets of each Portfolio exceeds .75%.
Effective December 8, 1997, Shay Financial Services, Inc. (Distributor) (SFSI)
became the distributor to the Fund. The Distributor is a wholly-owned subsidiary
of SISI, which is controlled by Rodger D. Shay, the Chairman of the Board of
Directors of the Fund. Prior to December 8, 1997, the distributor was Shay
Financial Services Co. (SFSC), a general partnership that consisted of two
general partners, SFSI and ACB Securities, Inc. (ACBS). ACBS is an
22
<PAGE> 25
- --------------------------------------------------------------------------------
ASSET MANAGEMENT FUND, INC.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
APRIL 30, 1999 (UNAUDITED)
- --------------------------------------------------------------------------------
indirect wholly-owned subsidiary of America's Community Bankers.
On December 8, 1997, SFSI purchased ACBS' 50% interest in SFSC; SFSC was
dissolved and its business (including distribution functions to the Fund),
assets, and liabilities were transferred to SFSI.
As compensation for distribution services, the Fund pays a distribution fee
monthly based upon an annual percentage of the average daily net assets of each
Portfolio as follows:
The fee rate for each of the Money Market Portfolio and Short U.S. Government
Securities Portfolio is based upon an annual percentage of the combined average
daily net assets of both portfolios and is as follows: .15% of the first $500
million, .125% of the next $500 million, .10% of the next $1 billion, and .075%
of such combined net assets in excess of $2 billion.
The fee rate for the Adjustable Rate Mortgage (ARM) Portfolio is .25% of
average daily net assets. The Distributor voluntarily waived approximately 40%
of its fee for the six months ended April 30, 1999. The waiver amounted to
$471,447.
The fee rate for each of the Intermediate Mortgage Securities Portfolio and
the U.S. Government Mortgage Securities Portfolio, computed separately, is as
follows: .15% of the first $500 million, .125% of the next $500 million, .10% of
the next $500 million, and .075% of such net assets in excess of $1.5 billion.
- --------------------------------------------------------------------------------
C. The Fund is authorized to issue 6 billion shares of common stock, par value
$.001 per share, of which 4 billion shares are of the Money Market Portfolio and
500 million shares are of each of the other four Portfolios. On April 30, 1999,
five shareholders held approximately 60% of the outstanding shares of the Money
Market Portfolio, four stockholders held approximately 31% of the outstanding
shares of the Short U.S. Government Securities Portfolio, one stockholder held
approximately 5% of the outstanding shares of the Adjustable Rate Mortgage (ARM)
Portfolio, six stockholders held approximately 54% of the outstanding shares of
the Intermediate Mortgage Securities Portfolio, and six stockholders held
approximately 66% of the outstanding shares of the U.S. Government Mortgage
Securities Portfolio. As of April 30, 1999, one of the directors had, through
the institutions he serves as officer, shared voting power over approximately
one percent of the shares of the Money Market Portfolio. Transactions in shares
of the Fund for the six months ended April 30, 1999 and the year ended October
31, 1998, were as follows:
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MONEY MARKET SHORT U.S. GOVERNMENT
PORTFOLIO SECURITIES PORTFOLIO
--------------------------------------------------------------------------
SIX MONTHS ENDED SIX MONTHS ENDED
APRIL 30, 1999 YEAR ENDED APRIL 30, 1999 YEAR ENDED
(UNAUDITED) OCTOBER 31, 1998 (UNAUDITED) OCTOBER 31, 1998
- --------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Sale of shares..................... 421,060,885 579,105,309 2,533,293 3,349,648
Shares issued to stockholders in
reinvestment of dividends........ 1,415,280 2,507,356 217,334 401,904
Shares repurchased................. (396,290,411) (571,275,124) (1,759,985) (3,688,922)
------------ ------------ ---------- ----------
Net increase....................... 26,185,754 10,337,541 990,642 62,630
Shares outstanding:
Beginning of period.............. 58,441,611 48,104,070 10,711,884 10,649,254
------------ ------------ ---------- ----------
End of period.................... 84,627,365 58,441,611 11,702,526 10,711,884
============ ============ ========== ==========
</TABLE>
- --------------------------------------------------------------------------------
23
<PAGE> 26
- --------------------------------------------------------------------------------
ASSET MANAGEMENT FUND, INC.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
APRIL 30, 1999 (UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
ADJUSTABLE RATE MORTGAGE INTERMEDIATE MORTGAGE
(ARM) PORTFOLIO SECURITIES PORTFOLIO
--------------------------------------------------------------------------
SIX MONTHS ENDED SIX MONTHS ENDED
APRIL 30, 1999 YEAR ENDED APRIL 30, 1999 YEAR ENDED
(UNAUDITED) OCTOBER 31, 1998 (UNAUDITED) OCTOBER 31, 1998
- --------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Sale of shares..................... 24,311,005 44,393,930 2,778,701 2,703,534
Shares issued to stockholders in
reinvestment of dividends........ 1,550,750 2,901,025 171,285 294,785
Shares repurchased................. (15,415,480) (32,108,808) (2,048,624) (811,362)
----------- ----------- ---------- ----------
Net increase....................... 10,446,275 15,186,147 901,362 2,186,957
Shares outstanding:
Beginning of period.............. 90,393,447 75,207,300 10,292,181 8,105,224
----------- ----------- ---------- ----------
End of period.................... 100,839,722 90,393,447 11,193,543 10,292,181
=========== =========== ========== ==========
</TABLE>
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
U.S. GOVERNMENT MORTGAGE
SECURITIES PORTFOLIO
------------------------------------
SIX MONTHS ENDED
APRIL 30, 1999 YEAR ENDED
(UNAUDITED) OCTOBER 31, 1998
- --------------------------------------------------------------------------------------------------
<S> <C> <C>
Sale of shares.............................................. 1,371,397 3,609,097
Shares issued to stockholders in reinvestment of
dividends................................................. 127,128 217,980
Shares repurchased.......................................... (672,810) (1,377,850)
--------- ----------
Net increase................................................ 825,715 2,449,227
Shares outstanding:
Beginning of period....................................... 7,470,078 5,020,851
--------- ----------
End of period............................................. 8,295,793 7,470,078
========= ==========
- --------------------------------------------------------------------------------------------------
</TABLE>
- --------------------------------------------------------------------------------
D. At April 30, 1999, 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........ $84,629,759 $129,000,819 $1,022,652,065 $119,829,800 $89,995,412
Accumulated net
realized gains
(losses)............. 761 (7,001,351) (28,492,082) (13,784,238) (3,718,653)
Undistributed net
investment income.... -0- 5,851 191,453 21,217 18,076
Net unrealized
appreciation of
investments.......... -0- 848,276 7,165,055 1,178,495 1,501,586
----------- ------------ -------------- ------------ -----------
$84,630,520 $122,853,595 $1,001,516,491 $107,245,274 $87,796,421
=========== ============ ============== ============ ===========
- -------------------------------------------------------------------------------------------------------
</TABLE>
24
<PAGE> 27
- --------------------------------------------------------------------------------
ASSET MANAGEMENT FUND, INC.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
APRIL 30, 1999 (UNAUDITED)
- --------------------------------------------------------------------------------
E. For tax purposes at October 31, 1998, the Short U.S. Government Securities
Portfolio had a capital loss carryforward of $7,048,358, of which $4,615,249
expires in 2002, $466,298 expires in 2003, and $1,966,811 expires in 2004. The
Adjustable Rate Mortgage (ARM) Portfolio had a capital loss carryforward of
$23,410,377, of which $236,741 expires in 2000, $5,932,937 expires in 2001,
$10,944,856 expires in 2002, $4,674,894 expires in 2003, $819,918 expires in
2004, and $801,031 expires in 2006.
The Intermediate Mortgage Securities Portfolio had a capital loss carryforward
of $13,773,110, of which $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 $3,902,019, of which $3,016,120
expires in 2002, $731,254 expires in 2003, $29,820 expires in 2004, and $124,825
expires in 2005. All losses are available to offset future realized capital
gains, if any.
- --------------------------------------------------------------------------------
F. For the six months ended April 30, 1999, 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............. $85,651,712 $367,363,391 $53,040,846 $55,593,881
Other securities........................ -0- 61,858,624 -0- -0-
----------- ------------ ----------- -----------
Total purchases...................... $85,651,712 $429,222,015 $53,040,846 $55,593,881
=========== ============ =========== ===========
Sales and maturities:
U.S. Government obligations............. $77,277,341 $133,307,611 $25,716,771 $33,882,498
Other securities........................ -0- -0- -0- -0-
----------- ------------ ----------- -----------
Total sales and maturities........... $77,277,341 $133,307,611 $25,716,771 $33,882,498
=========== ============ =========== ===========
- ----------------------------------------------------------------------------------------------------
</TABLE>
25
<PAGE> 28
- --------------------------------------------------------------------------------
GENERAL INFORMATION
- --------------------------------------------------------------------------------
For general information about any of the Portfolios offered by Asset Management
Fund, Inc., including fees and expenses, please send for a prospectus and read
it carefully before you invest.
SHAY FINANCIAL SERVICES, INC.
230 West Monroe Street/Chicago, IL 60606
800-527-3713
1000 Brickell Avenue/Miami, FL 33131
800-327-6190
83 East Avenue/Norwalk, CT 06851
800-456-8232
5605 North MacArthur Blvd./Irving, TX 75038
800-442-9825
101 Bradford Road/Wexford, PA 15090
800-224-5177
350 Springfield Avenue/Summit, NJ 07091
800-553-6159
- --------------------------------------------------------------------------------
ACCOUNT INFORMATION
- --------------------------------------------------------------------------------
To obtain performance data and place purchase orders, call toll free
800-527-3713.
<PAGE> 29
NOTES
<PAGE> 30
- --------------------------------------------------------------------------------
DISTRIBUTOR
Shay Financial Services, Inc.
230 West Monroe Street
Chicago, IL 60606
INVESTMENT ADVISER
Shay Assets Management, Inc.
230 West Monroe Street
Chicago, IL 60606
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
PFPC Trust Company
17th & Chestnut Streets
Philadelphia, PA 19101
INDEPENDENT ACCOUNTANTS
PricewaterhouseCoopers LLP
2400 Eleven Penn Center
Philadelphia, PA 19103
DIRECTORS AND OFFICERS
Richard M. Amis
Director
Arthur G. De Russo
Director
David F. Holland
Director
Gerald J. Levy
Director and Vice Chairman
Rodger D. Shay
Director and Chairman
Edward E. Sammons, Jr.
President and Treasurer
Robert T. Podraza
Vice President and
Assistant Treasurer
Daniel K. Ellenwood
Secretary
Christine A. Cwik
Assistant Secretary
