<PAGE> 1
[AMF LOGO]
ASSET MANAGEMENT FUND
230 West Monroe Street
Chicago, IL 60606
[AMF LOGO]
ASSET MANAGEMENT FUND
ANNUAL REPORT
OCTOBER 31, 1999
<PAGE> 2
- --------------------------------------------------------------------------------
CHAIRMAN'S MESSAGE
December 23, 1999
Dear Stockholders:
The Trustees and Officers of the Asset Management Fund are pleased to present
the Annual Report to stockholders for the fiscal year ending October 31, 1999.
The Fund has served the investment needs of financial institutions for over
seventeen years and the various portfolios continue to be managed, as they have
since inception, in a manner that is sensitive to the balance sheet needs,
regulatory imperatives and accounting concerns of financial intermediaries.
Within these parameters the Fund continues to strive to maximize yields to the
degree that is consistent with the preservation of capital and the maintenance
of liquidity.
The AMF portfolio management team faced another challenging year in 1999. The
market was at its high as the year commenced and near its low as the year ended
in October '99. There were multiple themes in play throughout the year, such as
extended equity valuations, spread volatility, strong domestic economic growth
and a somewhat antagonistic Fed. These were all part of the mix and will
probably remain so as we move forward into the millennium.
Clearly, in this type of environment the ability to engage in active portfolio
management is a critical necessity for the portfolio manager that produces
superior returns -- much less to escape disaster. We believe that the AMF
portfolios have once again served our investors well. Presented for your review
is a brief comment about each of the portfolios on the following pages.
We thank you, our stockholders, for your continuing participation and remind
you that our portfolio management team is always available for discussion. We
encourage stockholders to call us direct with any questions or concerns you
might have regarding the portfolios.
Sincerely,
/s/ Rodger D. Shay
Rodger D. Shay
Chairman
Asset Management Fund
<PAGE> 3
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ASSET MANAGEMENT FUND REVIEW
The various portfolios of the AMF Family were, on balance, neutrally
positioned over the course of the last twelve months as a case for higher or
lower rates could usually be made with equal vigor. Looking forward we think it
likely that some of today's uncertainties will find resolve as the millennium
unfolds.
SHORT U.S. GOVERNMENT SECURITIES PORTFOLIO - This portfolio produced an
average yield of 5.29% over the course of the last fiscal year and a total
return of 2.51%. Obviously, the return was impaired by falling bond prices
throughout the year. The portfolio has traditionally been committed largely to
the treasury market but this past year the portfolio somewhat enlarged its
ownership of agency "bullet" paper and short duration agency mortgage paper in
order to take advantage of the large yield spreads to treasury issues.
ADJUSTABLE RATE MORTGAGE (ARM) PORTFOLIO - This portfolio remains committed as
always to interest rate sensitive ARM securities with only very limited
commitments to pass thru COFI based issues and to 3-1 hybrids. Fast prepays
early in the year modestly pressured performance but the portfolio none the less
maintained its commitment to the ARM sector. The portfolio's average yield for
the year was 5.34% and its total return was 4.73%. ARMs, as a category, were
among one the best performing sectors of the debt markets over the last 12
months.
INTERMEDIATE MORTGAGE SECURITIES PORTFOLIO - The average yield for this
portfolio last year was 5.78% while its total return was 2.32%. Clearly the
longer duration of this fund was to its disadvantage in a declining bond market.
However, its duration was a good bit shorter than most other mortgage-related
mutual fund portfolios which helped its performance vis-a-vis its peers.
U.S. GOVERNMENT MORTGAGE SECURITIES PORTFOLIO - The longest duration portfolio
in the AMF complex produced a 6.10% average yield and a total return of 1.63%
for the one-year period. (Which goes to prove yield is nice but when the market
goes south, high yielding securities tend to give up more ground then
lower-yielding shorter duration securities.)
<PAGE> 4
- -------------------------------------
INVESTMENT
COMPARISON
Comparison of change in value of
$10,000 investment for the years
ended October 31
- --------------------------------------------------------------------------------
SHORT U.S. GOVERNMENT SECURITIES PORTFOLIO
<TABLE>
<CAPTION>
Short U.S. Government Lehman Short Government 1-3
Securities Portfolio Year Index
--------------------- ---------------------------
<S> <C> <C>
1989 10000 10000
1990 10818 10884
1991 12046 12234
1992 13096 13230
1993 13907 13996
1994 14040 14158
1995 15295 15308
1996 16059 16223
1997 17029 17275
1998 18235 18596
1999 18693 19148
</TABLE>
This graph compares the performance of the Short U.S. Government Securities
Portfolio to the Lehman Short Government 1-3 Year Index, showing returns for
U.S. Government and agency securities.
- ------------------------------------------
Short U.S. Government Securities Portfolio
Average Annual Return
One Five Ten
Year Year Year
------------------------
2.51% 5.89% 6.46%
- --------------------------------------------------------------------------------
ADJUSTABLE RATE MORTGAGE (ARM) PORTFOLIO
<TABLE>
<CAPTION>
Adjustable Rate Mortgage Lehman Adjustable Rate
(ARM) Portfolio Mortgage Index
------------------------ ----------------------
<S> <C> <C>
1990 10000.00 10000.00
1991 10090.00 10090.00
1992 10600.00 10680.00
1993 11104.00 11264.00
1994 11330.00 11292.00
1995 12239.00 12444.00
1996 13006.00 13323.00
1997 13871.00 14321.00
1998 14565.00 15208.00
1999 15253.00 15945.00
</TABLE>
This graph compares the performance of the Adjustable Rate Mortgage (ARM)
Portfolio to the Lehman Adjustable Rate Mortgage Index, showing returns for all
agency (ARM) securities.
- ------------------------------------------
Adjustable Rate Mortgage (ARM) Portfolio
Average Annual Return
One Five From
Year Year Inception*
------------------------------
2.51% 5.89% 5.34%
*From September 18, 1991
- --------------------------------------------------------------------------------
Past performance is not predictive of future results. Lehman indices represent
unmanaged groups of bonds that differ from the composition of each AMF
portfolio. The Lehman indices do not include a reduction in return for expenses.
<PAGE> 5
<TABLE>
<CAPTION>
- --------------------------------
INVESTMENT
COMPARISON
Comparison of change in value of
$10,000 investment for the years
ended Octcober 31
- ------------------------------------------------------------------------------------------------------------------------------
INTERMEDIATE MORTGAGE SECURITIES PORTFOLIO
Intermediate Mortgage
Securities Portfolio Lehman U.S. Mortgage Index
--------------------- --------------------------
<S> <C> <C>
1989 10000 10000
1990 10317 10847
1991 12010 12681
1992 13180 13714
1993 14277 14796
1994 14108 14577
1995 15608 16707
1996 16361 17863
1997 17653 19492
1998 18921 20915
1999 19364 21541
</TABLE>
This graph compares the performance
of the Intermediate Mortgage
Securities Portfolio to the Lehman
U.S. Mortgage Index, showing all
agency mortgage-backed securities.
- ----------------------------------
Intermediate Mortgage Securities
Portfolio Average Annual Return
One Five Ten
Year Year Year
- --------------------------------
2.32% 6.54% 6.83%
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------
U.S. GOVERNMENT MORTGAGE SECURITIES PORTFOLIO
U.S. Government Mortgage
Securities Portfolio Lehman U.S. Mortgage Index
------------------------ --------------------------
<S> <C> <C>
1989 10000 10000
1990 10753 10847
1991 12464 12601
1992 13472 13714
1993 14513 14796
1994 14249 14577
1995 16011 16707
1996 16914 17863
1997 18413 19492
1998 19808 20915
1999 20135 21541
This graph compares the performance
of the U.S. Government Mortgage
Securities Portfolio to the Lehman
U.S. Mortgage Index, showing all
agency mortgage-backed securities.
- ------------------------------------
U.S. Government Mortgage Securities
Average Annual Return
One Five Ten
Year Year Year
- --------------------------------
1.63% 7.16% 7.25%
- ------------------------------------------------------------------------------------------------------------------------------
Past performance is not predictive of future results. Lehman indices represent unmanaged groups of bonds that differ from the
composition of each AMF portfolio. The Lehman indices do not include a reduction in return for expenses.
</TABLE>
<PAGE> 6
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ASSET MANAGEMENT FUND
MONEY MARKET PORTFOLIO
STATEMENT OF NET ASSETS
OCTOBER 31, 1999
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PERCENTAGE
OF NET PAR
ASSETS MATURITY (000) VALUE
<S> <C> <C> <C> <C>
- ------------------------------------------------------------------------------------------------------
AGENCY OBLIGATIONS.................................... 97.8%
Federal Home Loan Bank* -- weekly reset
5.62% 11/3/99 $10,000 $10,000,000
5.60% 11/3/99 15,000 15,000,000
5.66% 11/3/99 5,000 5,000,000
-----------
30,000,000
-----------
Federal Home Loan Bank -- discount note
5.16% 11/1/99 45,000 44,993,547
Student Loan Marketing Association* -- weekly
reset............................................
5.80% 11/2/99 10,000 9,999,839
5.80% 11/2/99 5,000 5,000,000
-----------
14,999,839
-----------
TOTAL AGENCY OBLIGATIONS (Cost $89,999,839) 89,993,386
REPURCHASE AGREEMENTS................................. 2.2%
Lanston (Aubrey G.) & Co., Inc., 5.18% (Agreement
dated 10/29/99, to be repurchased at $2,043,882
on 11/1/99; collateralized by $2,043,000 U.S.
Treasury Notes, 6.63%, due 3/31/02. The market
value of the collateral is $2,089,629) 11/1/99 2,043 2,043,000
-----------
TOTAL REPURCHASE AGREEMENTS (Cost $2,043,000) 2,043,000
TOTAL INVESTMENTS IN SECURITIES....................... 100.0%
(Cost $92,042,839) (a) 92,036,386
OTHER ASSETS IN EXCESS OF LIABILITIES................. 0.0% 37,773
-----------
Net Assets applicable to 92,071,765 Shares of Common
Stock issued and outstanding........................ 100.0% $92,074,159
===========
Net Asset Value, offering and redemption price per
share ($92,074,159 / 92,071,765) $1.00
------
------
</TABLE>
- --------------------------------------------------------------------------------
Percentages indicated are based on net assets of $92,074,159.
* Variable rate investments. The rate presented is the rate in effect at
October 31, 1999. The date presented reflects the next rate change date.
(a) Cost for federal income tax and financial reporting purposes are the same.
See notes to financial statements.
1
<PAGE> 7
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ASSET MANAGEMENT FUND
SHORT U.S. GOVERNMENT SECURITIES PORTFOLIO
STATEMENT OF NET ASSETS
OCTOBER 31, 1999
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PERCENTAGE
OF NET PAR
ASSETS MATURITY (000) VALUE
- ----------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
AGENCY OBLIGATIONS................................. 13.8%
Federal Home Loan Bank -- discount note
5.16% 11/1/99 $ 5,000 $ 4,999,283
Freddie Mac
5.50% 5/15/02 5,000 4,909,375
6.25% 7/15/04 2,000 1,983,125
------------
6,892,500
Freddie Mac -- discount note
5.17% 11/12/99 4,000 3,993,681
------------
TOTAL AGENCY OBLIGATIONS (Cost $15,879,313) 15,885,464
FIXED RATE MORTGAGE-RELATED SECURITIES............. 18.3%
Collateralized Mortgage Obligations
Fannie Mae
5.85% 9/25/17 987 979,924
6.40% 11/18/19 1,392 1,387,535
5.50% 5/25/21 888 881,501
------------
3,248,960
Freddie Mac
6.00% 10/15/02 1,474 1,462,506
5.10% 4/15/17 2,756 2,732,855
5.00% 4/25/19 4,000 3,872,500
------------
8,067,861
Pass Throughs
Fannie Mae
6.00% 8/1/02 5,107 5,078,650
Freddie Mac
5.50% 5/1/03 4,764 4,643,485
------------
TOTAL FIXED RATE MORTGAGE-RELATED SECURITIES
(Cost $21,189,247) 21,038,956
U.S. TREASURY OBLIGATIONS.......................... 63.8%
U.S. Treasury Notes
6.13% 7/31/00 5,000 5,023,438
6.00% 8/15/00 2,000 2,007,500
5.75% 11/15/00 6,000 6,009,375
5.25% 5/31/01 10,000 9,925,000
5.75% 6/30/01 6,000 5,996,250
</TABLE>
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See notes to financial statements.
2
<PAGE> 8
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ASSET MANAGEMENT FUND
SHORT U.S. GOVERNMENT SECURITIES PORTFOLIO (CONTINUED)
STATEMENT OF NET ASSETS
OCTOBER 31, 1999
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PERCENTAGE
OF NET PAR
ASSETS MATURITY (000) VALUE
- ----------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
5.50% 7/31/01 2,000 1,990,000
6.50% 8/31/01 8,000 8,095,000
5.88% 11/30/01 3,000 3,003,750
6.63% 4/30/02 10,000 10,178,125
6.50% 5/31/02 7,000 7,105,000
5.38% 6/30/03 10,000 9,815,625
6.00% 8/15/04 4,000 4,010,000
------------
TOTAL U.S. TREASURY OBLIGATIONS (Cost $73,033,407) 73,159,063
REPURCHASE AGREEMENTS.............................. 3.0%
Lanston (Aubrey G.) & Co., Inc.,
5.18% (Agreement dated 10/29/99, to be
repurchased at $3,470,497 on 11/1/99;
collateralized by $3,469,000 U.S. Treasury
Notes, 6.63%, due 3/31/02. The market value
of the collateral is $3,548,175) 11/1/99 3,469 3,469,000
------------
TOTAL REPURCHASE AGREEMENTS (Cost $3,469,000) 3,469,000
TOTAL INVESTMENTS IN SECURITIES.................. 98.9%
(Cost $113,570,967) (a) 113,552,483
OTHER ASSETS IN EXCESS OF LIABILITIES............ 1.1% 1,287,086
------------
Net Assets applicable to 11,082,741 Shares of
Common Stock issued and outstanding.............. 100.0% $114,839,569
------------
------------
Net Asset Value, offering and redemption price per
share ($114,839,569 / 11,082,741) $10.36
-------
-------
</TABLE>
- --------------------------------------------------------------------------------
Percentages indicated are based on net assets of $114,839,569.
(a) Represents cost for financial reporting purposes and differs from cost basis
for federal income tax purposes by the amount of losses recognized for
financial reporting in excess of federal income tax reporting of $35,026.
Cost for federal income tax purposes differs from value by net unrealized
depreciation of securities as follows:
<TABLE>
<S> <C>
Unrealized appreciation $331,113
Unrealized depreciation (349,597)
--------
Net unrealized depreciation $(18,484)
========
</TABLE>
See notes to financial statements.
3
<PAGE> 9
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ASSET MANAGEMENT FUND
ADJUSTABLE RATE MORTGAGE (ARM) PORTFOLIO
STATEMENT OF NET ASSETS
OCTOBER 31, 1999
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PERCENTAGE
OF NET PAR
ASSETS MATURITY (000) VALUE
- -----------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
ADJUSTABLE RATE MORTGAGE-
RELATED SECURITIES*................................. 71.8%
Certificate of Deposit Based ARMS
Fannie Mae
6.53% 1/1/22 $ 5,473 $ 5,575,822
7.13% 10/1/22 4,608 4,699,201
6.59% 12/1/22 6,048 6,164,752
6.54% 9/1/23 4,857 4,946,328
------------
21,386,103
Freddie Mac
6.85% 12/1/24 21,323 21,762,420
6.93% 1/1/26 18,513 18,911,808
------------
40,674,228
Cost of Funds Index Based ARMS
Fannie Mae
5.45% 2/25/08 9,982 9,801,499
5.40% 6/25/12 4,000 3,875,000
5.50% 9/25/23 9,817 9,586,990
5.75% 8/1/29 14,191 13,929,470
5.75% 5/1/36 13,207 12,963,119
------------
50,156,078
Freddie Mac
5.40% 12/15/23 13,087 12,874,631
5.40% 2/15/24 1,906 1,867,817
------------
14,742,448
London Interbank Offering Rate (LIBOR)
Based ARMS
BA Mortgage Securities, Inc. 1998-4 1A7
5.88% 8/25/28 22,647 22,208,552
Donaldson, Lufkin, Jenrette Acceptance Corp.
1992-6
6.62% 7/25/22 17,905 18,078,585
Donaldson, Lufkin, Jenrette Acceptance Corp.
1992-9
6.88% 11/25/22 13,548 13,653,766
Donaldson, Lufkin, Jenrette Acceptance Corp.
1994-5
7.27% 4/25/24 2,844 2,879,756
- -----------------------------------------------------------------------------------------------------
See notes to financial statements.
</TABLE>
4
<PAGE> 10
- --------------------------------------------------------------------------------
ASSET MANAGEMENT FUND
ADJUSTABLE RATE MORTGAGE (ARM) PORTFOLIO (CONTINUED)
STATEMENT OF NET ASSETS
OCTOBER 31, 1999
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PERCENTAGE
OF NET PAR
ASSETS MATURITY (000) VALUE
- -----------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Fannie Mae
5.81% 11/25/23 $14,107 $ 14,129,440
5.68% 9/25/28 15,372 15,343,426
------------
29,472,866
Freddie Mac
5.89% 5/15/21 14,533 14,560,315
5.99% 3/15/25 21,984 22,031,804
7.20% 3/1/26 8,885 9,115,830
6.99% 5/1/26 6,688 6,842,531
------------
52,550,480
MLCC Mortgage Investors, Inc. 1996-C
5.63% 9/15/21 23,357 23,334,665
Morserv, Inc. 1996-2 1A1
6.19% 11/25/26 12,713 12,772,327
------------
174,950,997
Treasury Based ARMS
Chase 1990-EA1
6.35% 11/25/20 4,131 4,131,203
Citicorp 1992-18 CL A-1
6.80% 11/25/22 21,814 22,045,678
CMC Securities Corp. 1993-2H A1
6.73% 9/25/23 8,229 8,229,024
Fannie Mae
7.00% 7/1/25 22,179 22,685,205
6.99% 7/1/27 22,242 22,770,106
7.26% 11/1/27 18,486 18,971,614
7.03% 12/1/27 21,770 22,273,445
7.11% 1/1/28 13,779 14,114,358
7.02% 4/1/28 13,425 13,719,158
6.52% 3/1/29 6,864 6,971,495
------------
121,505,381
- -----------------------------------------------------------------------------------------------------
See notes to financial statements.
</TABLE>
5
<PAGE> 11
- --------------------------------------------------------------------------------
ASSET MANAGEMENT FUND
ADJUSTABLE RATE MORTGAGE (ARM) PORTFOLIO (CONTINUED)
STATEMENT OF NET ASSETS
OCTOBER 31, 1999
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PERCENTAGE
OF NET PAR
ASSETS MATURITY (000) VALUE
- -----------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Freddie Mac
6.88% 5/1/23 $ 6,019 $ 6,116,510
6.94% 10/1/24 12,273 12,537,997
6.95% 3/1/25 6,788 6,906,332
7.75% 11/1/26 10,654 10,904,107
6.88% 3/1/27 16,768 17,140,016
6.93% 3/1/27 19,463 19,906,583
6.98% 9/1/27 26,591 27,264,407
7.05% 1/1/28 11,466 11,680,626
6.89% 4/1/29 17,526 17,882,144
------------
130,338,722
Fund America 1993-A CL A-1
6.76% 6/25/23 9,986 10,110,990
Housing Securities, Inc. 1192 SL-1 CL A-1
6.60% 5/25/16 14,241 14,432,260
Resolution Trust Corp. Series 1995-2 A-3
6.28% 5/25/29 17,570 17,614,258
------------
328,407,516
------------
TOTAL ADJUSTABLE RATE
MORTGAGE RELATED SECURITIES (Cost $628,058,698) 630,317,370
AGENCY OBLIGATIONS.................................. 9.1%
Fannie Mae -- discount note
5.20% 11/12/99 20,000 19,965,332
Federal Home Loan Bank -- discount note
5.16% 11/1/99 40,000 39,994,267
Freddie Mac -- discount note
5.18% 11/16/99 20,000 19,956,833
------------
TOTAL AGENCY OBLIGATIONS (Cost $79,925,056) 79,916,432
FIXED RATE MORTGAGE- RELATED SECURITIES............. 12.4%
Collateralized Mortgage Obligations
ABN Amro Mortgage Corp. 1998-1 A3
7.00% 4/25/28 959 957,310
CMC Securities Corp. 1993-E S5
6.00% 11/25/08 6,503 6,452,569
- -----------------------------------------------------------------------------------------------------
See notes to financial statements.
</TABLE>
6
<PAGE> 12
- --------------------------------------------------------------------------------
ASSET MANAGEMENT FUND
ADJUSTABLE RATE MORTGAGE (ARM) PORTFOLIO (CONTINUED)
STATEMENT OF NET ASSETS
OCTOBER 31, 1999
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PERCENTAGE
OF NET PAR
ASSETS MATURITY (000) VALUE
- -----------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
CMC Securities Corp. 1994-E A7
6.00% 3/25/24 $17,864 $ 17,690,719
Fannie Mae
5.75%, 7/25/05 to 6/25/06 9,148 9,098,665
6.00%, 12/25/15 to 2/18/16 16,291 16,188,731
6.50% 10/18/17 15,000 14,971,876
------------
40,259,272
Freddie Mac
6.30% 6/25/13 5,670 5,648,510
4.00% 3/15/19 15,000 14,493,750
------------
20,142,260
Prudential Home Mortgage Services 1996-4
6.50% 4/25/26 6,976 6,917,602
Prudential Home Mortgage Services 1996-6
6.00% 5/25/26 3,432 3,415,568
------------
95,835,300
Pass Throughs
Freddie Mac
7.00% 3/1/12 5,600 5,598,618
8.00% 6/1/14 2,276 2,301,106
9.25% 1/1/17 3,256 3,403,145
10.50% 12/1/20 1,938 2,083,401
------------
13,386,270
------------
TOTAL FIXED RATE
MORTGAGE-RELATED SECURITIES (Cost $109,154,129) 109,221,570
HYBRID ARM.......................................... 3.5%
Fannie Mae
6.25% 7/1/28 6,496 6,390,604
6.34% 8/1/29 14,397 14,284,221
6.08% 9/1/29 9,828 9,702,425
------------
TOTAL HYBRID ARM (Cost $30,463,069) 30,377,250
- -----------------------------------------------------------------------------------------------------
See notes to financial statements.
</TABLE>
7
<PAGE> 13
- --------------------------------------------------------------------------------
ASSET MANAGEMENT FUND
ADJUSTABLE RATE MORTGAGE (ARM) PORTFOLIO (CONTINUED)
STATEMENT OF NET ASSETS
OCTOBER 31, 1999
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PERCENTAGE
OF NET PAR
ASSETS MATURITY (000) VALUE
- -----------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
U.S. TREASURY OBLIGATIONS........................... 1.1%
U.S. Treasury Notes
5.38% 6/30/03 $10,000 $ 9,815,625
------------
TOTAL U.S. TREASURY OBLIGATIONS (Cost $9,821,407) 9,815,625
REPURCHASE AGREEMENTS............................... 1.4%
Lanston (Aubrey G.) & Co., Inc.,
5.18% (Agreement dated 10/29/99, to be
repurchased at $11,969,164 on 11/1/99;
collateralized by $11,863,000 U.S. Treasury
Notes, 7.75%, due 12/31/99. The market value
of the collateral is $12,220,985) 11/1/99 11,964 11,964,000
------------
TOTAL REPURCHASE AGREEMENTS (Cost $11,964,000) 11,964,000
TOTAL INVESTMENTS IN SECURITIES..................... 99.3%
(Cost $869,386,359)(a) 871,612,247
OTHER ASSETS IN EXCESS OF LIABILITIES............... 0.7% 5,995,815
------------
Net Assets applicable to 89,154,326 Shares of Common
Stock issued and outstanding...................... 100.0% $877,608,062
------------
------------
Net Asset Value, offering and redemption price per
share ($877,608,062 / 89,154,326) $9.84
------
------
- -----------------------------------------------------------------------------------------------------
</TABLE>
Percentages indicated are based on net assets of $877,608,062.
* The rates presented are the rates in effect at October 31, 1999.
(a) Represents cost for financial reporting purposes and differs from cost basis
for federal income tax purposes by the amount of losses recognized for
financial reporting in excess of federal income tax reporting of $12,401.
Cost for federal income tax purposes differs from value by net unrealized
appreciation of securities as follows:
<TABLE>
<S> <C>
Unrealized appreciation $4,934,710
Unrealized depreciation (2,708,822)
----------
Net unrealized appreciation $2,225,888
==========
</TABLE>
See notes to financial statements.
8
<PAGE> 14
- --------------------------------------------------------------------------------
ASSET MANAGEMENT FUND
INTERMEDIATE MORTGAGE SECURITIES PORTFOLIO
STATEMENT OF NET ASSETS
OCTOBER 31, 1999
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PERCENTAGE
OF NET PAR
ASSETS MATURITY (000) VALUE
- ----------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
AGENCY OBLIGATIONS................................... 1.8%
Freddie Mac
5.75% 4/15/08 $ 2,000 $ 1,878,125
-----------
TOTAL AGENCY OBLIGATIONS (Cost $1,851,146) 1,878,125
FIXED RATE MORTGAGE-RELATED SECURITIES............... 75.8%
Collateralized Mortgage Obligations
ABN Amro Mortgage Corp. 1998-1 A3
7.00% 4/25/28 256 255,283
Fannie Mae
5.50% 11/18/15 5,000 4,914,062
Freddie Mac
5.00% 4/25/19 4,000 3,872,500
-----------
9,041,845
Pass Throughs
Fannie Mae
6.50% 5/1/08 5,465 5,362,757
Freddie Mac Gold
6.00%, 4/1/05 to 1/1/14 17,009 16,388,604
5.50%, 4/1/06 to 9/1/14 10,161 9,622,719
7.50%, 1/1/10 to 7/1/11 12,473 12,632,934
6.50%, 2/1/12 to 4/1/12 11,700 11,477,337
-----------
50,121,594
Government National Mortgage Association
6.00%, 1/15/14 to 6/15/14 12,977 12,466,273
-----------
67,950,624
-----------
TOTAL FIXED RATE MORTGAGE-RELATED SECURITIES
(Cost $77,766,751) 76,992,469
U.S. TREASURY OBLIGATIONS............................ 18.3%
U.S. Treasury Notes
5.75% 6/30/01 3,000 2,998,125
5.25% 8/15/03 8,000 7,810,000
6.00% 8/15/04 1,000 1,002,500
6.63% 5/15/07 1,000 1,026,563
5.50% 5/15/09 6,000 5,756,250
-----------
TOTAL U.S. TREASURY OBLIGATIONS (Cost $18,624,571) 18,593,438
- ----------------------------------------------------------------------------------------------------
</TABLE>
See notes to financial statements.
9
<PAGE> 15
- --------------------------------------------------------------------------------
ASSET MANAGEMENT FUND
INTERMEDIATE MORTGAGE SECURITIES PORTFOLIO (CONTINUED)
STATEMENT OF NET ASSETS
OCTOBER 31, 1999
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PERCENTAGE
OF NET PAR
ASSETS MATURITY (000) VALUE
- ----------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
REPURCHASE AGREEMENTS................................ 3.9%
Lanston (Aubrey G.) & Co., Inc.,
5.18% (Agreement dated 10/29/99, to be
repurchased at $4,003,728 on 11/1/99;
collateralized by $4,002,000 U.S. Treasury
Notes,
6.63%, due 3/31/02. The market value of the
collateral is $4,093,340) 11/1/99 $4,002 $ 4,002,000
------------
TOTAL REPURCHASE AGREEMENTS (Cost $4,002,000) 4,002,000
TOTAL INVESTMENTS IN SECURITIES...................... 99.8%
(Cost $102,244,468)(a) 101,466,032
OTHER ASSETS IN EXCESS OF LIABILITIES................ 0.2% 244,062
------------
Net Assets applicable to 10,906,311 Shares of
Common Stock issued and outstanding................ 100.0% $101,710,094
============
Net Asset Value, offering and redemption
price per share ($101,710,094 / 10,906,311)........ $9.33
============
</TABLE>
- --------------------------------------------------------------------------------
Percentages indicated are based on net assets of $101,710,094.
(a) Represents cost for financial reporting purposes and differs from cost basis
for federal income tax purposes by the amount of losses recognized for
financial reporting in excess of federal income tax reporting of $137,563.
Cost for federal income tax purposes differs from value by net unrealized
depreciation of securities as follows:
<TABLE>
<S> <C>
Unrealized appreciation $ 366,113
Unrealized depreciation (1,144,549)
-----------
Net unrealized depreciation $ (778,436)
===========
</TABLE>
See notes to financial statements.
10
<PAGE> 16
- --------------------------------------------------------------------------------
ASSET MANAGEMENT FUND
U.S. GOVERNMENT MORTGAGE SECURITIES PORTFOLIO
STATEMENT OF NET ASSETS
OCTOBER 31, 1999
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PERCENTAGE
OF NET PAR
ASSETS MATURITY (000) VALUE
- ----------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
AGENCY OBLIGATIONS.................................. 1.1%
Freddie Mac
5.75% 4/15/08 $ 1,000 $ 939,063
-----------
TOTAL AGENCY OBLIGATIONS (Cost $942,339) 939,063
FIXED RATE MORTGAGE-RELATED SECURITIES.............. 80.7%
Pass Throughs
Fannie Mae
5.50% 1/1/06 4,265 4,057,330
Freddie Mac Gold
5.50% 4/1/06 6,661 6,340,753
6.00% 2/1/13 4,024 3,870,470
6.00% 8/1/13 3,484 3,351,316
5.50% 11/1/13 1,674 1,575,960
-----------
15,138,499
Government National Mortgage Association
9.00%, 11/15/04 to 10/15/21 2,825 2,980,818
6.50%, 5/15/14 to 4/15/28 12,922 12,608,956
10.00% 3/15/19 218 233,052
7.50%, 2/15/24 to 6/15/27 11,165 11,196,816
8.50% 6/15/24 834 868,947
7.00% 4/15/27 12,697 12,455,129
6.00%, 6/15/28 to 1/15/29 11,693 10,852,293
-----------
51,196,011
-----------
TOTAL FIXED RATE MORTGAGE-RELATED SECURITIES
(Cost $70,732,423) 70,391,840
U.S. TREASURY OBLIGATIONS........................... 14.6%
U.S. Treasury Notes
6.25% 8/31/02 2,000 2,018,750
5.50% 5/31/03 6,000 5,911,874
5.25% 5/15/04 1,000 972,188
5.63% 5/15/08 3,000 2,897,813
5.50% 5/15/09 1,000 959,375
-----------
TOTAL U.S. TREASURY OBLIGATIONS (Cost $12,799,781) 12,760,000
- ----------------------------------------------------------------------------------------------------
</TABLE>
See notes to financial statements.
11
<PAGE> 17
- --------------------------------------------------------------------------------
ASSET MANAGEMENT FUND
U.S. GOVERNMENT MORTGAGE SECURITIES PORTFOLIO (CONTINUED)
STATEMENT OF NET ASSETS
OCTOBER 31, 1999
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PERCENTAGE
OF NET PAR
ASSETS MATURITY (000) VALUE
- -----------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
REPURCHASE AGREEMENTS................................. 3.4%
Lanston (Aubrey G.) & Co., Inc.,
(Agreement dated 10/29/99, to be repurchased
at $2,975,284 on 11/1/99; collateralized by
$2,974,000 U.S. Treasury Notes, 6.63%, due
3/31/02. The market value of the collateral is
$3,041,877) 11/1/99 2,974 2,974,000
-----------
TOTAL REPURCHASE AGREEMENTS (Cost $2,974,000) 2,974,000
TOTAL INVESTMENTS IN SECURITIES....................... 99.8%
(Cost $87,448,543) (a) 87,064,903
OTHER ASSETS IN EXCESS OF LIABILITIES................. 0.2% 185,450
-----------
Net Assets applicable to 8,502,769 Shares of Common
Stock issued and outstanding........................ 100.0% $87,250,353
-----------
-----------
Net Asset Value, offering and redemption price per
share ($87,250,353 / 8,502,769) $10.26
-------
-------
</TABLE>
- --------------------------------------------------------------------------------
Percentages indicated are based on net assets of $87,250,353.
(a) Represents cost for financial reporting purposes and differs from cost basis
for federal income tax purposes by the amount of losses recognized for
financial reporting in excess of federal income tax reporting of $33,489.
Cost for federal income tax purposes differs from value by net unrealized
depreciation of securities as follows:
<TABLE>
<S> <C>
Unrealized appreciation $ 819,581
Unrealized depreciation (1,203,221)
-----------
Net unrealized depreciation $ (383,640)
===========
</TABLE>
See notes to financial statements.
12
<PAGE> 18
- --------------------------------------------------------------------------------
ASSET MANAGEMENT FUND
STATEMENTS OF OPERATIONS
FOR THE YEAR ENDED OCTOBER 31, 1999
- --------------------------------------------------------------------------------
<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................ $3,710,493 $7,048,118 $55,439,740 $6,582,845 $5,789,337
---------- ---------- ----------- ---------- ----------
Operating expenses:
Investment advisory fee...... 109,670 302,267 4,278,323 367,649 217,727
Distribution fee............. 109,670 181,360 2,376,846 157,564 130,636
Administration fee........... 22,096 36,561 287,505 31,769 26,346
Custodian fee................ 13,537 18,194 126,468 14,167 26,420
Trustees' fees............... 2,775 6,301 58,637 6,326 3,887
Transfer agent fee........... 15,322 10,989 26,135 3,304 10,830
Legal........................ 7,226 15,169 159,786 17,440 13,251
Audit........................ 4,018 5,836 62,562 5,837 9,358
Other........................ 6,352 9,729 81,772 9,693 13,617
---------- ---------- ----------- ---------- ----------
290,666 586,406 7,458,034 613,749 452,072
Fee waivers.................. (109,670) -- (2,852,215) (105,042) --
---------- ---------- ----------- ---------- ----------
Total expenses............ 180,996 586,406 4,605,819 508,707 452,072
---------- ---------- ----------- ---------- ----------
Net investment income..... 3,529,497 6,461,712 50,833,921 6,074,138 5,337,265
---------- ---------- ----------- ---------- ----------
REALIZED AND UNREALIZED (LOSSES)
FROM INVESTMENT ACTIVITIES:
Net realized (loss)............ -- (675,404) (4,971,448) (954,738) (836,298)
Net change in unrealized
appreciation/(depreciation)
of investments............... -- (2,828,997) (1,260,125) (2,834,209) (3,107,757)
---------- ---------- ----------- ---------- ----------
Net (loss) on
investments............. -- (3,504,401) (6,231,573) (3,788,947) (3,944,055)
---------- ---------- ----------- ---------- ----------
NET INCREASE IN NET ASSETS RESULTING
FROM OPERATIONS................... $3,529,497 $2,957,311 $44,602,348 $2,285,191 $1,393,210
========== ========== =========== ========== ==========
- ----------------------------------------------------------------------------------------------------------
See notes to financial statements.
</TABLE>
13
<PAGE> 19
- --------------------------------------------------------------------------------
ASSET MANAGEMENT FUND
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEARS ENDED OCTOBER 31, 1999 AND 1998
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------
MONEY MARKET SHORT U.S. GOVERNMENT
PORTFOLIO SECURITIES PORTFOLIO
------------------------------------------------------------
1999 1998 1999 1998
- ------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Increase (decrease) in net assets:
Operations:
Net investment income.............. $ 3,529,497 $ 3,069,291 $ 6,461,712 $ 6,406,087
Net realized gain/(loss)........... -- 3,155 (675,404) 410,614
Net change in unrealized
appreciation/(depreciation) of
investments...................... -- -- (2,828,997) 859,220
------------- ------------- ------------ ------------
Net increase in net assets
resulting from operations..... 3,529,497 3,072,446 2,957,311 7,675,921
------------- ------------- ------------ ------------
Dividends paid to stockholders:
From net investment income......... (3,529,497) (3,069,291) (6,458,738) (6,406,087)
In excess of net investment
income........................... -- -- -- --
From net realized gains............ (761) -- -- --
------------- ------------- ------------ ------------
Total dividends paid to
stockholders.................. (3,530,258) (3,069,291) (6,458,738) (6,406,087)
------------- ------------- ------------ ------------
Capital transactions:
Proceeds from sale of shares....... 788,825,804 579,105,309 29,405,048 35,353,289
Shares issued to stockholders in
reinvestment of dividends........ 2,907,490 2,507,356 4,441,912 4,240,979
Cost of shares repurchased......... (758,103,140) (571,275,124) (29,746,442) (38,927,316)
------------- ------------- ------------ ------------
Net increase (decrease) in net
assets from capital
transactions.................. 33,630,154 10,337,541 4,100,518 666,952
------------- ------------- ------------ ------------
Total increase (decrease) in net
assets........................ 33,629,393 10,340,696 599,091 1,936,786
Net Assets:
Beginning of year..................... 58,444,766 48,104,070 114,240,478 112,303,692
------------- ------------- ------------ ------------
End of year........................... $ 92,074,159 $ 58,444,766 $114,839,569 $114,240,478
============= ============= ============ ============
Share transactions:
Issued............................. 788,825,804 579,105,309 2,783,895 3,349,648
Reinvested......................... 2,907,490 2,507,356 423,288 401,904
Repurchased........................ (758,103,140) (571,275,124) (2,836,326) (3,688,922)
------------- ------------- ------------ ------------
Net increase (decrease) from
share transactions............ 33,630,154 10,337,541 370,857 62,630
============= ============= ============ ============
- ------------------------------------------------------------------------------------------------------
See notes to financial statements.
</TABLE>
14
<PAGE> 20
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
INTERMEDIATE
ADJUSTABLE RATE MORTGAGE SECURITIES U.S. GOVERNMENT
MORTGAGE (ARM) PORTFOLIO PORTFOLIO MORTGAGE SECURITIES PORTFOLIO
- ----------------------------------------------------------------------------------------------
1999 1998 1999 1998 1999 1998
- ----------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
$ 50,833,921 $ 48,173,900 $ 6,074,138 $ 5,585,457 $ 5,337,265 $ 4,476,426
(4,971,448) (1,301,927) (954,738) 545,001 (836,298) 439,413
(1,260,125) (5,972,441) (2,834,209) 97,888 (3,107,757) 98,398
------------- ------------- ------------ ----------- ----------- -----------
44,602,348 40,899,532 2,285,191 6,228,346 1,393,210 5,014,237
------------- ------------- ------------ ----------- ----------- -----------
(50,785,092) (48,173,900) (6,074,951) (5,585,457) (5,314,467) (4,476,426)
-- -- -- (297,387) -- (136,992)
-- -- -- -- -- --
------------- ------------- ------------ ----------- ----------- -----------
(50,785,092) (48,173,900) (6,074,951) (5,882,844) (5,314,467) (4,613,418)
------------- ------------- ------------ ----------- ----------- -----------
300,038,599 442,702,401 31,163,180 26,122,562 15,324,674 38,684,773
30,577,753 28,898,086 3,464,307 2,835,707 2,848,770 2,328,362
(342,375,271) (320,110,598) (28,566,059) (7,847,475) (7,175,510) (14,812,400)
------------- ------------- ------------ ----------- ----------- -----------
(11,758,919) 151,489,889 6,061,428 21,110,794 10,997,934 26,200,735
------------- ------------- ------------ ----------- ----------- -----------
(17,941,663) 144,215,521 2,271,668 21,456,296 7,076,677 26,601,554
895,549,725 751,334,204 99,438,426 77,982,130 80,173,676 53,572,122
------------- ------------- ------------ ----------- ----------- -----------
$ 877,608,062 $ 895,549,725 $101,710,094 $99,438,426 $87,250,353 $80,173,676
============= ============= ============ =========== =========== ===========
30,262,704 44,393,930 3,243,087 2,703,534 1,433,797 3,609,097
3,088,423 2,901,025 364,694 294,785 271,703 217,980
(34,590,248) (32,108,808) (2,993,651) (811,362) (672,809) (1,377,850)
------------- ------------- ------------ ----------- ----------- -----------
(1,239,121) 15,186,147 614,130 2,186,957 1,032,691 2,449,227
============= ============= ============ =========== =========== ===========
- ------------------------------------------------------------------------------------------
See notes to financial statements.
</TABLE>
15
<PAGE> 21
- --------------------------------------------------------------------------------
ASSET MANAGEMENT FUND
MONEY MARKET PORTFOLIO
FINANCIAL HIGHLIGHTS
(FOR A SHARE OUTSTANDING THROUGHOUT EACH YEAR)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
YEAR ENDED OCTOBER 31,
----------------------------------------------------
1999 1998 1997 1996 1995
- --------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of year.......... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
-------- -------- -------- -------- --------
Income from investment operations:
- ------------------------------------------
Net investment income..................... 0.0480 0.0523 0.0513 0.0516 0.0547
Net realized and unrealized gain (loss) on
investments.............................. -- -- -- -- --
-------- -------- -------- -------- --------
Total from investment operations..... 0.0480 0.0523 0.0513 0.0516 0.0547
-------- -------- -------- -------- --------
Less distributions:
- --------------------
Dividends paid to stockholders:
From net investment income............... (0.0480) (0.0523) (0.0513) (0.0516) (0.0547)
From net realized gains.................. --(a) -- -- -- --
-------- -------- -------- -------- --------
Total distributions to
stockholders...................... (0.0480) (0.0523) (0.0513) (0.0516) (0.0547)
-------- -------- -------- -------- --------
Net asset value, end of year................ $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
======== ======== ======== ======== ========
Total return................................ 4.94% 5.35% 5.25% 5.29% 5.60%
Ratios/Supplemental data:
- ------------------------------
Net assets, end of year (in 000's)........ $ 92,074 $ 58,445 $ 48,104 $ 69,484 $ 36,869
Ratio of expenses to average net assets... 0.25% 0.25% 0.26% 0.24% 0.24%
Ratio of net investment income to average
net assets............................... 4.81% 5.22% 5.14% 5.15% 5.40%
Ratio of expenses to average net
assets*.................................. 0.40% 0.40% 0.41% 0.39% 0.39%
</TABLE>
- --------------------------------------------------------------------------------
* During the period, certain fees were voluntarily reduced. If such voluntary
fee reductions had not occurred, the ratio would have been as indicated.
(a) Distributions per share were less than $0.005.
See notes to financial statements.
16
<PAGE> 22
- --------------------------------------------------------------------------------
ASSET MANAGEMENT FUND
SHORT U.S. GOVERNMENT SECURITIES PORTFOLIO
FINANCIAL HIGHLIGHTS
(FOR A SHARE OUTSTANDING THROUGHOUT EACH YEAR)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
YEAR ENDED OCTOBER 31,
----------------------------------------------------
1999 1998 1997 1996 1995
- --------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of year.......... $ 10.66 $ 10.55 $ 10.56 $ 10.68 $ 10.45
-------- -------- -------- -------- --------
Income from investment operations:
- ------------------------------------------
Net investment income..................... 0.5600 0.6144 0.6273 0.6370 0.6746
Net realized and unrealized gain (loss) on
investments.............................. (0.3000) 0.1100 (0.0100) (0.1200) 0.2300
-------- -------- -------- -------- --------
Total from investment operations..... 0.2600 0.7244 0.6173 0.5170 0.9046
-------- -------- -------- -------- --------
Less distributions:
- --------------------
Dividends paid to stockholders from net
investment income........................ (0.5600) (0.6144) (0.6273) (0.6370) (0.6746)
-------- -------- -------- -------- --------
Net asset value, end of year................ $ 10.36 $ 10.66 $ 10.55 $ 10.56 $ 10.68
======== ======== ======== ======== ========
Total return................................ 2.51% 7.08% 6.04% 4.99% 8.94%
Ratios/Supplemental data:
- ------------------------------
Net assets, end of year (in 000's)........ $114,840 $114,240 $112,304 $176,892 $167,343
Ratio of expenses to average net assets... 0.49% 0.50% 0.50% 0.48% 0.49%
Ratio of net investment income to average
net assets............................... 5.35% 5.83% 5.97% 6.02% 6.42%
Portfolio turnover rate................... 155% 84% 75% 69% 112%
</TABLE>
- --------------------------------------------------------------------------------
See notes to financial statements.
17
<PAGE> 23
- --------------------------------------------------------------------------------
ASSET MANAGEMENT FUND
ADJUSTABLE RATE MORTGAGE (ARM) PORTFOLIO
FINANCIAL HIGHLIGHTS
(FOR A SHARE OUTSTANDING THROUGHOUT EACH YEAR)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
YEAR ENDED OCTOBER 31,
----------------------------------------------------
1999 1998 1997 1996 1995
- --------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of year.......... $ 9.91 $ 9.99 $ 9.95 $ 9.94 $ 9.78
-------- -------- -------- -------- --------
Income from investment operations:
- ------------------------------------------
Net investment income..................... 0.5290 0.5676 0.6036 0.5958 0.6035
Net realized and unrealized gain (loss) on
investments.............................. (0.0700) (0.0800) 0.0400 0.0100 0.1600
-------- -------- -------- -------- --------
Total from investment operations..... 0.4590 0.4876 0.6436 0.6058 0.7635
-------- -------- -------- -------- --------
Less distributions:
- --------------------
Dividends paid to stockholders from net
investment income........................ (0.5290) (0.5676) (0.6036) (0.5958) (0.6035)
-------- -------- -------- -------- --------
Net asset value, end of year................ $ 9.84 $ 9.91 $ 9.99 $ 9.95 $ 9.94
======== ======== ======== ======== ========
Total return................................ 4.73% 5.00% 6.65% 6.27% 8.02%
Ratios/Supplemental data:
- ------------------------------
Net assets, end of year (in 000's)........ $877,608 $895,550 $751,334 $796,016 $891,538
Ratio of expenses to average net assets... 0.48% 0.49% 0.49% 0.47% 0.48%
Ratio of net investment income to average
net assets............................... 5.34% 5.70% 6.07% 6.01% 6.12%
Ratio of expenses to average net
assets*.................................. 0.78% 0.79% 0.79% 0.77% 0.78%
Portfolio turnover rate................... 51% 53% 74% 60% 68%
</TABLE>
- --------------------------------------------------------------------------------
* During the period, certain fees were voluntarily reduced. If such voluntary
fee reductions had not occurred, the ratio would have been as indicated.
See notes to financial statements.
18
<PAGE> 24
- --------------------------------------------------------------------------------
ASSET MANAGEMENT FUND
INTERMEDIATE MORTGAGE SECURITIES PORTFOLIO
FINANCIAL HIGHLIGHTS
(FOR A SHARE OUTSTANDING THROUGHOUT EACH YEAR)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
YEAR ENDED OCTOBER 31,
----------------------------------------------------
1999 1998 1997 1996 1995
- --------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of year.......... $ 9.66 $ 9.62 $ 9.52 $ 9.68 $ 9.34
-------- -------- -------- -------- --------
Income from investment operations:
- ------------------------------------------
Net investment income..................... 0.5490 0.5932 0.6245 0.6101 0.6211
Net realized and unrealized gain (loss) on
investments.............................. (0.3300) 0.0761 0.1000 (0.1600) 0.3400
-------- -------- -------- -------- --------
Total from investment operations..... 0.2190 0.6693 0.7245 0.4501 0.9611
-------- -------- -------- -------- --------
Less distributions:
- --------------------
Dividends paid to stockholders:
From net investment income............... (0.5490) (0.5932) (0.6245) (0.6101) (0.6211)
In excess of net investment income....... -- (0.0361) -- -- --
-------- -------- -------- -------- --------
Total distributions to
stockholders...................... (0.5490) (0.6293) (0.6245) (0.6101) (0.6211)
-------- -------- -------- -------- --------
Net asset value, end of year................ $ 9.33 $ 9.66 $ 9.62 $ 9.52 $ 9.68
======== ======== ======== ======== ========
Total return................................ 2.32% 7.18% 7.90% 4.82% 10.63%
Ratios/Supplemental data:
- ------------------------------
Net assets, end of year (in 000's)........ $101,710 $ 99,438 $ 77,982 $ 92,289 $187,087
Ratio of expenses to average net assets... 0.48% 0.49% 0.49% 0.44% 0.38%
Ratio of net investment income to average
net assets............................... 5.78% 6.17% 6.58% 6.38% 6.55%
Ratio of expenses to average net
assets*.................................. 0.58% 0.59% 0.59% 0.58% 0.58%
Portfolio turnover rate................... 90% 69% 120% 133% 133%
</TABLE>
- --------------------------------------------------------------------------------
* During the period, certain fees were voluntarily reduced. If such voluntary
fee reductions had not occurred, the ratio would have been as indicated.
See notes to financial statements.
19
<PAGE> 25
- --------------------------------------------------------------------------------
ASSET MANAGEMENT FUND
U.S. GOVERNMENT MORTGAGE SECURITIES PORTFOLIO
FINANCIAL HIGHLIGHTS
(FOR A SHARE OUTSTANDING THROUGHOUT EACH YEAR)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
YEAR ENDED OCTOBER 31,
----------------------------------------------------
1999 1998 1997 1996 1995
- --------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of year.......... $ 10.73 $ 10.67 $ 10.51 $ 10.68 $ 10.23
-------- -------- -------- -------- --------
Income from investment operations:
- ------------------------------------------
Net investment income..................... 0.6416 0.6947 0.7344 0.7479 0.7703
Net realized and unrealized gain (loss) on
investments.............................. (0.4726) 0.0877 0.1600 (0.1700) 0.4500
-------- -------- -------- -------- --------
Total from investment operations..... 0.1690 0.7824 0.8944 0.5779 1.2203
-------- -------- -------- -------- --------
Less distributions:
- --------------------
Dividends paid to stockholders:
From net investment income............... (0.6390) (0.6947) (0.7344) (0.7479) (0.7703)
In excess of net investment income....... -- (0.0277) -- -- --
-------- -------- -------- -------- --------
Total distributions to
stockholders...................... (0.6390) (0.7224) (0.7344) (0.7479) (0.7703)
-------- -------- -------- -------- --------
Net asset value, end of year................ $ 10.26 $ 10.73 $ 10.67 $ 10.51 $ 10.68
======== ======== ======== ======== ========
Total return................................ 1.63% 7.58% 8.87% 5.63% 12.37%
Ratios/Supplemental data:
- ------------------------------
Net assets, end of year (in 000's)........ $ 87,250 $ 80,174 $ 53,572 $ 57,267 $ 62,258
Ratio of expenses to average net assets... 0.52% 0.53% 0.53% 0.52% 0.53%
Ratio of net investment income to average
net assets............................... 6.13% 6.48% 7.01% 7.10% 7.39%
Portfolio turnover rate................... 73% 93% 135% 165% 177%
- --------------------------------------------------------------------------------------------------
</TABLE>
See notes to financial statements.
20
<PAGE> 26
- --------------------------------------------------------------------------------
ASSET MANAGEMENT FUND
NOTES TO FINANCIAL STATEMENTS
OCTOBER 31, 1999
- --------------------------------------------------------------------------------
Asset Management Fund (the "Fund") is registered under the Investment Company
Act of 1940, as amended (the "1940 Act"), as a diversified open end management
company. As of October 31, 1999, the Fund offered shares in 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 (referred to individually as a "Portfolio" and collectively as the
"Portfolios"). The Portfolios' investment objectives are to seek to achieve as
high a level of current income as is consistent with the preservation of
capital, the maintenance of liquidity and the differing average maturity of
investments held by each. The Fund was reorganized as a Delaware Business Trust
on September 30, 1999.
Effective October 21, 1999, Asset Management Fund began offering Class D
Shares of the Money Market Portfolio. There were no Class D Shares issued or
outstanding during the period ended October 31, 1999.
A. 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 market value using market quotations or
prices obtained from an independent pricing service based upon prices provided
by market makers or estimates of market values obtained from yield data relating
to instruments or securities with similar characteristics. For certain mortgage
related securities, the Board of Trustees has approved the use of a matrix
developed by the Adviser that the Board believes reflects the fair value of such
securities. Short-term instruments maturing within 60 days may be valued at
amortized cost, provided that the Board of Trustees determines that amortized
cost represents fair value.
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
21
<PAGE> 27
- --------------------------------------------------------------------------------
ASSET MANAGEMENT FUND
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
OCTOBER 31, 1999
- --------------------------------------------------------------------------------
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, interest income
is recorded on the accrual basis, and the cost of investments sold is determined
by use of the specific identification method for both financial reporting and
income tax purposes.
B. Effective December 8, 1997, Shay Assets Management, Inc. (Adviser) (SAMI)
became the 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 Trustees of the Fund.
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 approximately 97% of its fee for the
year ended October 31, 1999. The waiver amounted to $106,238.
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 asset 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 year ended October 31, 1999. The waiver amounted to $1,901,477.
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 year ended October 31,
1999. The waiver amounted to $105,042.
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
Trustees of the Fund.
As compensation for distribution services, the Fund pays the Distributor a
distribution fee monthly in accordance with the distribution plan adopted by the
Fund, pursuant to Rule 12b-1 under the 1940 Act, based upon an annual
22
<PAGE> 28
- --------------------------------------------------------------------------------
ASSET MANAGEMENT FUND
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
OCTOBER 31, 1999
- --------------------------------------------------------------------------------
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 Distributor voluntarily
waived approximately 3% of its fee for the Money Market Portfolio for the year
ended October 31, 1999. The waiver amounted to $3,432.
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 year ended October 31, 1999. The waiver amounted to $950,738.
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.
Effective August 1, 1999, administration and transfer agency services to the
Fund changed from PFPC Inc. to BISYS Fund Services Ohio, Inc. (Administrator,
Transfer Agent) (BISYS, Ohio). BISYS, Ohio is a subsidiary of The BISYS Group,
Inc.
As compensation for administrative services, the Fund pays the administrator
an administrative fee monthly in accordance with the administration plan adopted
by the Fund. The fee rate for each of the Money Market, Short U.S. Government
Securities, Adjustable Rate Mortgage (ARM), Intermediate Mortgage Securities and
U.S. Government Mortgage Securities Portfolios, computed separately, is an
annual rate of 0.03% of the average daily net assets of each Portfolio. This
rate remained consistent throughout the change in service providers.
- --------------------------------------------------------------------------------
C. At October 31, 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......... $92,074,159 $122,581,024 $907,278,731 $117,352,539 $92,140,345
Accumulated net realized
(losses).............. -- (7,722,971) (31,896,557) (14,864,009) (4,506,352)
Net unrealized
appreciation/
(depreciation) of
investments........... -- (18,484) 2,225,888 (778,436) (383,640)
----------- ------------ ------------ ------------ -----------
$92,074,159 $114,839,569 $877,608,062 $101,710,094 $87,250,353
=========== ============ ============ ============ ===========
- --------------------------------------------------------------------------------------------------------
</TABLE>
23
<PAGE> 29
- --------------------------------------------------------------------------------
ASSET MANAGEMENT FUND
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
OCTOBER 31, 1999
- --------------------------------------------------------------------------------
D. For tax purposes at October 31, 1999, the Short U.S. Government Securities
Portfolio had a capital loss carryforward of $7,690,919, of which $4,615,249
expires in 2002, $466,298 expires in 2003, $1,966,811 expires in 2004, and
$642,561 expires in 2007. The Adjustable Rate Mortgage (ARM) Portfolio had a
capital loss carryforward of $28,870,321, 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, $1,301,928 expires in 2006, and $4,959,047
expires in 2007.
The Intermediate Mortgage Securities Portfolio had a capital loss carryforward
of $14,602,245, of which $9,538,250 expires in 2002, $1,932,691 expires in 2003,
$2,314,129 expires in 2004, and $817,175 expires in 2007. The U.S. Government
Mortgage Securities Portfolio had a capital loss carryforward of $4,585,351, of
which $2,896,643 expires in 2002, $731,254 expires in 2003, $29,820 expires in
2004, $124,825 expires in 2005, and $802,809 expires in 2007. All losses are
available to offset future realized capital gains, if any.
- --------------------------------------------------------------------------------
E.For the year ended October 31, 1999, purchases and proceeds from
sales/maturities of securities, other than short-term investments, were as
follows:
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------
SHORT U.S. ADJUSTABLE RATE INTERMEDIATE U.S. GOVERNMENT
GOVERNMENT MORTGAGE MORTGAGE MORTGAGE
SECURITIES (ARM) SECURITIES SECURITIES
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
- ------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Purchases............................ $174,431,898 $692,958,254 $119,082,429 $88,069,193
============ ============ ============ ===========
Sales and maturities................. $167,238,840 $438,394,895 $889,587,182 $58,937,842
============ ============ ============ ===========
- ------------------------------------------------------------------------------------------------------
</TABLE>
24
<PAGE> 30
- --------------------------------------------------------------------------------
To the Stockholders and Trustees
of Asset Management Fund.
In our opinion, the accompanying statements of net assets and the related
statements of operations and of changes in net assets and the financial
highlights present fairly, in all material respects, the financial position of
the Money Market, Short U.S. Government Securities, Adjustable Rate Mortgage
(ARM), Intermediate Mortgage Securities and U.S. Government Mortgage Securities
Portfolios of Asset Management Fund (all portfolios collectively referred to as
the "Fund") at October 31, 1999, the results of each of their operations for the
year then ended, the changes in each of their net assets for each of the two
years in the period then ended and the financial highlights for each of the five
years in the period then ended, in conformity with generally accepted accounting
principles. These financial statements and financial highlights (hereafter
referred to as "financial statements") are the responsibility of the Fund's
management; our responsibility is to express an opinion on these financial
statements based on our audits. We conducted our audits of these financial
statements in accordance with generally accepted auditing standards, which
require that we plan and perform the audit to obtain reasonable assurance about
whether the financial statements are free of material misstatement. An audit
includes examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statements, assessing the accounting principles
used and significant estimates made by management, and evaluating the overall
financial statement presentation. We believe that our audits, which included
confirmation of securities at October 31, 1999 by correspondence with the
custodian, provide a reasonable basis for the opinion expressed above.
PricewaterhouseCoopers LLP
2400 Eleven Penn Center
Philadelphia, PA
December 17, 1999
25
<PAGE> 31
- --------------------------------------------------------------------------------
ASSET MANAGEMENT FUND
STOCKHOLDER MEETING
- --------------------------------------------------------------------------------
(Unaudited) A Special Meeting of the Stockholders was held at the offices of
Shay Assets Management, Inc., 230 West Monroe Street, Chicago, Illinois 60606,
on September 28, 1999. Asset Management Fund, Inc., shareholders were asked to
vote on two separate issues: to approve the Agreement and Plan of Reorganization
(reorganizing the Maryland corporation into a Delaware business trust) and to
modify or eliminate certain fundamental investment policies.
The following are the results:
1. TO APPROVE THE REORGANIZATION INTO A DELAWARE BUSINESS TRUST. This item was
approved by stockholders of the entire Fund.
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------------------
FOR AGAINST ABSTAIN
- -----------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Asset Management Fund....................................... 127,496,556 1,477,718 56,873
- -----------------------------------------------------------------------------------------------
</TABLE>
2. TO APPROVE CHANGES TO THE FUNDAMENTAL INVESTMENT POLICIES. These items were
all approved by stockholders of each Portfolio entitled to vote.
(a) To adopt a fundamental policy limiting investments so as to qualify for
investment by financial institutions.
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------------------
FOR AGAINST ABSTAIN
- -----------------------------------------------------------------------------------------------
<S> <C> <C> <C>
U.S. Government Mortgage Securities Portfolio............... 6,299,890 -- --
Intermediate Mortgage Securities Portfolio.................. 6,460,808 402,414 --
Short U.S. Government Securities Portfolio.................. 6,424,229 394,515 226,095
Adjustable Rate Mortgage (ARM) Portfolio.................... 56,927,934 2,158,184 658,574
Money Market Portfolio...................................... 47,074,775 -- --
- -----------------------------------------------------------------------------------------------
</TABLE>
(b) To change the fundamental policy on high quality assets to a non-fundamental
policy.
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------------------
FOR AGAINST ABSTAIN
- -----------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Short U.S. Government Securities Portfolio 6,424,229 394,515 226,095
Money Market Portfolio 47,074,775 -- --
- -----------------------------------------------------------------------------------------------
</TABLE>
(c) To eliminate the fundamental policy on OTS qualifying securities.
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------------------
FOR AGAINST ABSTAIN
- -----------------------------------------------------------------------------------------------
<S> <C> <C> <C>
U.S. Government Mortgage Securities Portfolio............... 6,299,890 -- --
Intermediate Mortgage Securities Portfolio.................. 6,460,808 402,414 --
Short U.S. Government Securities Portfolio.................. 6,424,229 394,515 226,095
Adjustable Rate Mortgage (ARM) Portfolio.................... 56,927,934 2,158,184 658,574
Money Market Portfolio...................................... 47,074,775 -- --
- -----------------------------------------------------------------------------------------------
</TABLE>
26
<PAGE> 32
- --------------------------------------------------------------------------------
ASSET MANAGEMENT FUND
STOCKHOLDER MEETING (CONTINUED)
- --------------------------------------------------------------------------------
(d) To change the fundamental policy on investments in mortgage securities to a
non-fundamental policy.
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------------------
FOR AGAINST ABSTAIN
- -----------------------------------------------------------------------------------------------
<S> <C> <C> <C>
U.S. Government Mortgage Securities Portfolio............... 6,299,890 -- --
Intermediate Mortgage Securities Portfolio.................. 6,460,808 402,414 --
Adjustable Rate Mortgage (ARM) Portfolio.................... 56,927,934 2,158,184 658,574
- -----------------------------------------------------------------------------------------------
</TABLE>
(e) To amend the fundamental policy on portfolio lending.
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------------------
FOR AGAINST ABSTAIN
- -----------------------------------------------------------------------------------------------
<S> <C> <C> <C>
U.S. Government Mortgage Securities Portfolio............... 6,299,890 -- --
Intermediate Mortgage Securities Portfolio.................. 6,460,808 402,414 --
Short U.S. Government Securities Portfolio.................. 6,424,229 394,515 226,095
Adjustable Rate Mortgage (ARM) Portfolio.................... 56,915,377 2,170,741 658,574
Money Market Portfolio...................................... 47,074,775 -- --
- -----------------------------------------------------------------------------------------------
</TABLE>
(f) To change the fundamental policy on illiquid investments to a
non-fundamental policy.
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------------------
FOR AGAINST ABSTAIN
- -----------------------------------------------------------------------------------------------
<S> <C> <C> <C>
U.S. Government Mortgage Securities Portfolio............... 6,299,890 -- --
Intermediate Mortgage Securities Portfolio.................. 6,460,808 402,414 --
Short U.S. Government Securities Portfolio.................. 6,424,229 394,515 226,095
Adjustable Rate Mortgage (ARM) Portfolio.................... 56,927,934 2,158,184 658,574
Money Market Portfolio...................................... 47,034,404 40,370 --
- -----------------------------------------------------------------------------------------------
</TABLE>
(g) To eliminate the fundamental policy on money market instruments.
<TABLE>
<CAPTION>
- ----------------------------------------------------------------------------------------------
FOR AGAINST ABSTAIN
- ----------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Money Market Portfolio...................................... 47,074,775 -- --
- ----------------------------------------------------------------------------------------------
</TABLE>
27
<PAGE> 33
NOTES
<PAGE> 34
NOTES
<PAGE> 35
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
GENERAL INFORMATION
- --------------------------------------------------------------------------------
For general information about any of the Portfolios offered by Asset Management
Fund 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> 36
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
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 AND TRANSFER AGENT
BISYS Fund Services Ohio, Inc.
3435 Stelzer Road
Columbus, OH 43219
LEGAL COUNSEL
Vedder, Price, Kaufman & Kammholz
222 North LaSalle Street
Chicago, IL 60601
CUSTODIAN
The Bank of New York
100 Church Street, 10th Fl.
New York, NY 10286
INDEPENDENT ACCOUNTANTS
PricewaterhouseCoopers LLP
2400 Eleven Penn Center
Philadelphia, PA 19103
TRUSTEES AND OFFICERS
Richard M. Amis
Trustee
Arthur G. De Russo
Trustee
David F. Holland
Trustee
Gerald J. Levy
Trustee and Vice Chairman
Rodger D. Shay
Trustee and Chairman
Edward E. Sammons, Jr.
President
Robert T. Podraza
Vice President and Assistant Treasurer
Steve Pierce
Treasurer
Daniel K. Ellenwood
Secretary
Christine A. Cwik
Assistant Secretary
Alaina Metz
Assistant Secretary
