<PAGE> 1
ASSET MANAGEMENT FUND, INC. LOGO
ASSET MANAGEMENT FUND
230 WEST MONROE STREET
CHICAGO, IL 60606
ASSET MANAGEMENT FUND, INC. LOGO
ASSET MANAGEMENT FUND
SEMI-ANNUAL REPORT
APRIL 30, 2000
<PAGE> 2
CHAIRMAN'S MESSAGE
June 12, 2000
Dear Stockholders:
The Trustees and Officers of the Asset Management Fund are pleased to present
this semi-annual report.
The economy continued to sizzle over the last six months to the degree that
the Federal Reserve finally leaned into the barely perceptible inflationary
winds and in three incremental moves, bumped the Fed Funds rate higher by 75
basis points.
In the process the yield curve became partially inverted as yields in the
short end of the curve rose and those in the longer end declined. This phenomena
combined with other factors, caused credit spreads to widen (i.e. treasuries
outperformed agencies, mortgages and corporates) and volatility to increase.
The most productive asset alignment during the period was to own short
duration adjustable securities of most any description and long duration
treasuries. The overweight of treasuries in the AMF mortgage portfolios and the
superior performance of the ARM sector over the last six months are testimony to
this reality.
Looking forward we believe that the AMF portfolios are well positioned given
current market trends and conditions and are, as always, constructed to serve
the special needs of depository institutions.
We thank you, our shareholders for your continuing participation in the AMF
portfolios and wish to remind you that your portfolio management team is always
available to answer your concerns or questions. We encourage your calls.
Sincerely,
[SIGNATURE TO COME]
Rodger D. Shay
Chairman
Asset Management Fund
<PAGE> 3
--------------------------------------------------------------------------------
ASSET MANAGEMENT FUND
MONEY MARKET PORTFOLIO
STATEMENT OF NET ASSETS
APRIL 30, 2000 (UNAUDITED)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PERCENTAGE
OF NET PAR
ASSETS MATURITY (000) VALUE
-------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
AGENCY OBLIGATIONS................................... 104.7%
Federal Home Loan Bank*
6.08% 5/3/00 $ 7,500 $ 7,498,950
6.29% 5/10/00 5,000 5,000,000
------------
12,498,950
------------
Freddie Mac -- Discount Note
5.88% 5/1/00 26,000 26,000,000
Student Loan Marketing Association*
5.98% 5/2/00 10,000 10,000,000
5.93% 5/2/00 12,500 12,500,000
------------
22,500,000
------------
TOTAL AGENCY OBLIGATIONS
(Cost $60,998,950) 60,998,950
REPURCHASE AGREEMENTS................................ 3.9%
Barclays Capital, 5.70% (Agreement dated 4/28/00,
to be repurchased at $2,277,081 on 5/1/00;
collateralized by $2,265,000 U.S. Treasury
Notes, 8.75%, due 8/15/00. The market value of
the collateral is $2,322,306) 5/1/00 2,276 2,276,000
------------
TOTAL REPURCHASE AGREEMENTS
(Cost $2,276,000) 2,276,000
TOTAL INVESTMENTS.................................... 108.6%
(Cost $63,274,950)(a) 63,274,950
LIABILITIES IN EXCESS OF OTHER ASSETS................ (8.6%) (5,026,479)
------------
Net Assets applicable to 58,248,578 Shares of Common
Stock issued and outstanding....................... 100.0% $ 58,248,471
============
Net Asset Value, offering and redemption price per
share ($58,248,471 / 58,248,578) $1.00
------
------
</TABLE>
--------------------------------------------------------------------------------
Percentages indicated are based on net assets of $58,248,471.
* Variable rate investments. The rate presented is the rate in effect at
April 30, 2000. 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> 4
--------------------------------------------------------------------------------
ASSET MANAGEMENT FUND
SHORT U.S. GOVERNMENT SECURITIES PORTFOLIO
STATEMENT OF NET ASSETS
APRIL 30, 2000 (UNAUDITED)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PERCENTAGE
OF NET PAR
ASSETS MATURITY (000) VALUE
-------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
AGENCY OBLIGATIONS................................... 24.3%
Freddie Mac
5.50% 5/15/02 $ 6,000 $ 5,823,750
6.25% 7/15/04 4,000 3,856,250
------------
9,680,000
Freddie Mac -- Discount Note
5.88% 5/1/00 3,000 2,999,510
5.89% 5/19/00 5,000 4,984,536
5.92% 5/23/00 9,000 8,966,132
------------
16,950,178
------------
TOTAL AGENCY OBLIGATIONS
(Cost $26,839,209) 26,630,178
MORTGAGE RELATED SECURITIES.......................... 22.3%
Cost of Funds Index Based ARMS
6.15% 5/24/30 4,000 3,897,500
Fannie Mae
6.00% 8/1/02 4,107 4,072,459
6.00% 8/25/17 5,000 4,876,562
5.85% 9/25/17 630 624,391
6.40% 11/18/19 1,056 1,048,630
5.50% 5/25/21 488 485,925
------------
11,107,967
Freddie Mac
6.00% 10/15/02 1,246 1,225,199
5.50% 5/1/03 4,055 3,929,828
7.10% 7/20/12 2,674 2,661,514
5.10% 4/15/17 1,626 1,613,768
------------
9,430,309
------------
TOTAL MORTGAGE RELATED SECURITIES (Cost
$24,625,031) 24,435,776
-------------------------------------------------------------------------------------------------------
See notes to financial statements.
</TABLE>
2
<PAGE> 5
--------------------------------------------------------------------------------
ASSET MANAGEMENT FUND
SHORT U.S. GOVERNMENT SECURITIES PORTFOLIO (CONTINUED)
STATEMENT OF NET ASSETS
APRIL 30, 2000 (UNAUDITED)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PERCENTAGE
OF NET PAR
ASSETS MATURITY (000) VALUE
-------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
U.S. TREASURY OBLIGATIONS............................ 52.6%
U.S. Treasury Notes
6.13% 7/31/00 $ 5,000 $ 5,001,563
5.63% 2/28/01 8,000 7,945,000
6.50% 8/31/01 8,000 7,985,000
5.88% 11/30/01 9,000 8,890,313
6.13% 12/31/01 5,000 4,954,688
6.63% 4/30/02 10,000 9,987,499
6.50% 5/31/02 7,000 6,975,938
5.38% 6/30/03 4,000 3,862,500
6.00% 8/15/04 2,000 1,958,750
------------
TOTAL U.S. TREASURY OBLIGATIONS
(Cost $58,034,001) 57,561,251
REPURCHASE AGREEMENTS................................ 3.5%
Barclays Capital, 5.70% (Agreement dated 4/28/00,
to be repurchased at $3,785,797 on 5/1/00;
collateralized by $3,765,000 U.S. Treasury
Notes, 8.75%, due 8/15/00. The market value of
the collateral is $3,860,256) 05/1/00 3,784 3,784,000
------------
TOTAL REPURCHASE AGREEMENTS
(Cost $3,784,000) 3,784,000
TOTAL INVESTMENTS.................................... 102.7%
(Cost $113,282,241)(a) 112,411,205
LIABILITIES IN EXCESS OF OTHER ASSETS................ (2.7%) (2,902,436)
------------
Net Assets applicable to 10,689,816 Shares of Common
Stock issued and outstanding....................... 100.0% $109,508,769
============
Net Asset Value, offering and redemption price per
share ($109,508,769/10,689,816) $10.24
============
</TABLE>
--------------------------------------------------------------------------------
Percentages indicated are based on net assets of $109,508,769.
(a) Represents cost for federal income tax and financial reporting purposes and
differs from value by net unrealized depreciation of securities as follows:
<TABLE>
<S> <C>
Unrealized appreciation $ 13,953
Unrealized depreciation (884,989)
---------
Net unrealized depreciation $(871,036)
=========
</TABLE>
See notes to financial statements.
3
<PAGE> 6
--------------------------------------------------------------------------------
ASSET MANAGEMENT FUND
ADJUSTABLE RATE MORTGAGE (ARM) PORTFOLIO
STATEMENT OF NET ASSETS
APRIL 30, 2000 (UNAUDITED)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PERCENTAGE
OF NET PAR
ASSETS MATURITY (000) VALUE
-------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
AGENCY OBLIGATIONS................................... 4.8%
Fannie Mae
7.00% 2/15/03 $ 5,000 $ 4,979,688
Freddie Mac -- Discount Note
5.88% 5/1/00 10,000 9,998,367
4.75% 5/19/00 20,000 19,934,363
------------
29,932,730
------------
TOTAL AGENCY OBLIGATIONS
(Cost $34,929,287) 34,912,418
ADJUSTABLE RATE MORTGAGE RELATED SECURITIES.......... 87.5%
1 Yr. Constant Maturity Treasury Based ARMS
Chase 1990-EA1,
6.81% 11/25/20 3,226 3,226,217
Fannie Mae
7.35% 7/1/25 20,353 20,880,905
7.64% 7/1/27 20,088 20,659,083
7.43% 11/1/27 16,738 17,188,322
7.43% 12/1/27 19,431 19,947,072
7.59% 1/1/28 12,740 12,970,573
7.56% 4/1/28 11,938 12,143,213
7.41% 5/1/28 11,564 11,751,753
Freddie Mac
7.31% 10/1/24 11,515 11,781,642
7.78% 11/1/26 9,300 9,526,738
7.36% 3/1/27 15,123 15,463,762
7.37% 3/1/27 17,531 17,947,307
7.32% 9/1/27 24,366 24,967,657
7.36% 1/1/28 9,708 9,908,217
7.26% 4/1/29 16,224 16,629,557
Fund America 1993-A CL A-1
7.24% 6/25/23 9,105 9,275,279
Government National Mortgage Association
6.00% 6/26/15 10,000 9,800,000
------------
244,067,297
6 Mo. Treasury Bill Based ARMS*
Citicorp 1992-18 CL A-1
7.07% 11/25/22 20,114 20,403,492
Housing Securities, Inc. 1192 SL-1 CL A-1
8.01% 5/25/16 12,585 12,785,777
------------
33,189,269
-------------------------------------------------------------------------------------------------------
See notes to financial statements.
</TABLE>
4
<PAGE> 7
--------------------------------------------------------------------------------
ASSET MANAGEMENT FUND
ADJUSTABLE RATE MORTGAGE (ARM) PORTFOLIO (CONTINUED)
STATEMENT OF NET ASSETS
APRIL 30, 2000 (UNAUDITED)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PERCENTAGE
OF NET PAR
ASSETS MATURITY (000) VALUE
-------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
6 Mo. Certificate of Deposit Based ARMS*
Fannie Mae
7.57% 12/1/24 $48,272 $ 49,268,028
Freddie Mac
7.75% 1/1/26 17,706 18,098,867
------------
67,366,895
6 Mo. London Interbank Offering Rate (LIBOR) Based
ARMS*
Donaldson, Lufkin, Jenrette Acceptance Corp. 1992-6
7.50% 7/25/22 15,507 15,696,197
Donaldson, Lufkin, Jenrette Acceptance Corp. 1992-9
7.53% 11/25/22 11,211 11,295,428
Donaldson, Lufkin, Jenrette Acceptance Corp. 1994-5
7.98% 4/25/24 2,540 2,578,047
Freddie Mac
7.95% 3/1/26 8,112 8,332,813
7.90% 5/1/26 6,013 6,161,061
------------
44,063,546
Cost of Funds Index Based ARMS*
Fannie Mae
5.90% 2/25/08 9,982 9,801,499
5.85% 6/25/12 4,000 3,878,750
5.95% 9/25/23 9,707 9,418,562
6.20% 2/1/30 13,648 13,298,256
6.15% 5/24/30 6,000 5,846,250
6.20% 5/1/36 52,309 50,968,413
Freddie Mac
5.87% 12/15/23 12,871 12,641,938
5.85% 2/15/24 1,855 1,814,707
------------
107,668,375
-------------------------------------------------------------------------------------------------------
See notes to financial statements.
</TABLE>
5
<PAGE> 8
--------------------------------------------------------------------------------
ASSET MANAGEMENT FUND
ADJUSTABLE RATE MORTGAGE (ARM) PORTFOLIO (CONTINUED)
STATEMENT OF NET ASSETS
APRIL 30, 2000 (UNAUDITED)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PERCENTAGE
OF NET PAR
ASSETS MATURITY (000) VALUE
-------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
HYBRID ARMS*
Fannie Mae
6.24% 7/1/28 $ 5,860 $ 5,734,009
6.33% 8/1/29 13,874 13,696,528
6.08% 9/1/29 9,374 9,218,763
------------
28,649,300
MONTHLY London Interbank Offering Rate (LIBOR)
Collateralized Mortgage Obligations Based ARMS*
ABN Amro Mortgage Corp.
6.53% 12/25/29 6,621 6,612,280
BA Mortgage Securities, Inc. 1998-4 1A7
6.38% 8/25/28 21,227 20,935,190
Fannie Mae
6.56% 11/25/23 12,005 12,023,265
6.43% 9/25/28 15,372 15,372,249
Freddie Mac
6.64% 5/15/21 12,036 12,062,083
6.74% 3/15/25 18,320 18,377,411
MLCC Mortgage Investors, Inc. 1996-C
6.30% 9/15/21 21,214 21,180,700
Morserv, Inc. 96-2 1A1
6.73% 11/25/26 11,170 11,240,048
------------
117,803,226
TOTAL ADJUSTABLE RATE MORTGAGE RELATED SECURITIES
(Cost $639,483,136) 642,807,908
-------------------------------------------------------------------------------------------------------
See notes to financial statements.
</TABLE>
6
<PAGE> 9
--------------------------------------------------------------------------------
ASSET MANAGEMENT FUND
ADJUSTABLE RATE MORTGAGE (ARM) PORTFOLIO (CONTINUED)
STATEMENT OF NET ASSETS
APRIL 30, 2000 (UNAUDITED)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PERCENTAGE
OF NET PAR
ASSETS MATURITY (000) VALUE
-------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
FIXED RATE MORTGAGE RELATED SECURITIES............... 5.3%
BALLOONS
Fannie Mae
6.00% 5/1/04 $ 8,247 $ 8,061,807
Collateralized Mortgage Obligations
ABN Amro Mortgage Corp. 1998-1 A3
7.00% 4/25/28 549 547,345
Fannie Mae
5.75% 6/25/06 1,304 1,296,459
6.00% 12/25/15 794 790,434
6.50% 10/18/17 13,058 12,952,046
Freddie Mac
6.30% 6/25/13 940 935,961
Prudential Home Mortgage Services 1996-4
6.50% 4/25/26 6,110 5,953,896
Prudential Home Mortgage Services 1996-6
6.00% 5/25/26 1,911 1,900,629
------------
24,376,770
Mortgage Pass Throughs
Freddie Mac
8.00% 6/1/14 1,932 1,929,521
9.25% 1/1/17 2,797 2,885,785
10.50% 12/1/20 1,737 1,839,338
------------
6,654,644
------------
TOTAL FIXED RATE MORTGAGE RELATED SECURITIES
(Cost $39,651,053) 39,093,221
U.S. TREASURY OBLIGATIONS............................ 0.7%
U.S. Treasury Notes
5.88% 11/15/04 5,000 4,867,188
------------
-------------------------------------------------------------------------------------------------------
See notes to financial statements.
</TABLE>
7
<PAGE> 10
--------------------------------------------------------------------------------
ASSET MANAGEMENT FUND
ADJUSTABLE RATE MORTGAGE (ARM) PORTFOLIO (CONTINUED)
STATEMENT OF NET ASSETS
APRIL 30, 2000 (UNAUDITED)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PERCENTAGE
OF NET PAR
ASSETS MATURITY (000) VALUE
-------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
TOTAL U.S. TREASURY OBLIGATIONS
(Cost $4,899,408) $ 4,867,188
REPURCHASE AGREEMENTS................................ 3.5%
Barclays Capital 5.70% (Agreement dated 4/28/00, to
be repurchased at $25,527,120 on 5/1/00;
collateralized by $25,385,000 U.S. Treasury
Notes, 8.75%, due 8/15/00. The market value of
the collateral is $26,027,253) 5/1/00 $25,515 25,515,000
------------
TOTAL REPURCHASE AGREEMENTS
(Cost $25,515,000) 25,515,000
TOTAL INVESTMENTS.................................. 101.8%
(Cost $744,477,884)(a) 747,195,735
LIABILITIES IN EXCESS OF OTHER ASSETS................ (1.8%) (13,142,194)
------------
Net Assets applicable to 74,626,225 Shares of Common
Stock issued and outstanding....................... 100.0% $734,053,541
============
Net Assets Value, offering and redemption price per
share ($734,053,541/74,626,225) $ 9.84
============
</TABLE>
--------------------------------------------------------------------------------
Percentages indicated are based on net assets of $734,053,541.
* The rate presented is the rate in effect at April 30, 2000.
(a) Represents cost for federal income tax and financial reporting purposes and
differs from value by net unrealized appreciation of securities as follows:
<TABLE>
<S> <C>
Unrealized appreciation $ 4,750,057
Unrealized depreciation (2,032,206)
-----------
Net unrealized appreciation $ 2,717,851
===========
</TABLE>
See notes to financial statements.
8
<PAGE> 11
--------------------------------------------------------------------------------
ASSET MANAGEMENT FUND
INTERMEDIATE MORTGAGE SECURITIES PORTFOLIO
STATEMENT OF NET ASSETS
APRIL 30, 2000 (UNAUDITED)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PERCENTAGE
OF NET PAR
ASSETS MATURITY (000) VALUE
-------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
AGENCY OBLIGATIONS.................................... 6.4%
Freddie Mac
5.75% 4/15/08 $ 2,000 $ 1,813,125
Freddie Mac -- Discount Note
5.88% 5/1/00 4,000 3,999,347
-----------
TOTAL AGENCY OBLIGATIONS (Cost $5,857,733) 5,812,472
MORTGAGE RELATED SECURITIES........................... 83.2%
15 Yr. Securities
Fannie Mae
6.50%, 5/1/08 to 4/1/14 7,910 7,618,314
Freddie Mac,
7.50%, 1/1/10 to 7/1/11 11,371 11,309,941
6.50%, 2/1/12 to 4/1/12 10,992 10,438,487
6.00%, 3/1/14 to 3/1/15 11,905 11,160,199
Government National Mortgage Association
6.00%, 1/15/14 to 6/15/14 11,972 11,238,194
-----------
51,765,135
BALLOONS
Fannie Mae
6.00% 10/1/05 4,170 3,990,223
Freddie Mac
5.50% 2/1/07 7,991 7,471,578
-----------
11,461,801
Collateralized Mortgage Obligations
ABN Amro Mortgage Corp. 1998-1 A3
7.00% 4/25/28 147 145,959
Freddie Mac
5.50% 11/15/16 5,000 4,768,750
-----------
4,914,709
Cost of Funds Index Based ARMS
Fannie Mae
6.10% 3/1/30 4,066 3,961,845
6.15% 5/24/30 4,000 3,897,500
-----------
7,859,345
-----------
TOTAL MORTGAGE RELATED SECURITIES (Cost $76,889,687) 76,000,990
U.S. TREASURY OBLIGATIONS............................. 10.8%
U.S. Treasury Notes
5.88% 11/15/04 7,000 6,814,062
6.00% 8/15/09 1,000 977,188
6.50% 2/15/10 2,000 2,040,000
-----------
-------------------------------------------------------------------------------------------------------
See notes to financial statements.
</TABLE>
9
<PAGE> 12
--------------------------------------------------------------------------------
ASSET MANAGEMENT FUND
INTERMEDIATE MORTGAGE SECURITIES PORTFOLIO (CONTINUED)
STATEMENT OF NET ASSETS
APRIL 30, 2000 (UNAUDITED)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PERCENTAGE
OF NET PAR
ASSETS MATURITY (000) VALUE
-------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
TOTAL U.S. TREASURY OBLIGATIONS (Cost $9,862,407) $ 9,831,250
REPURCHASE AGREEMENTS................................. 3.7%
Barclays Capital, 5.70% (Agreement dated 4/28/00,
to be repurchased at $3,412,620 on 5/1/00;
collateralized by $3,395,000 U.S. Treasury
Notes, 8.75%, due 8/15/00. The market value of
the collateral is $3,480,895) 5/1/00 $ 3,411 3,411,000
-----------
TOTAL REPURCHASE AGREEMENTS
(Cost $3,411,000) 3,411,000
TOTAL INVESTMENTS..................................... 104.1%
(Cost $96,020,827) (a) 95,055,712
LIABILITIES IN EXCESS OF OTHER ASSETS................. (4.1%) (3,755,384)
-----------
Net Assets applicable to 9,981,505 Shares of Common
Stock issued and outstanding........................ 100.0% $91,300,328
===========
Net Asset Value, offering and redemption price per
share ($91,300,328/9,981,505) $9.15
===========
</TABLE>
--------------------------------------------------------------------------------
Percentages indicated are based on net assets of $91,300,328.
(a) Represents cost for federal income tax and financial reporting purposes and
differs from value by net unrealized depreciation of securities as follows:
<TABLE>
<S> <C>
Unrealized appreciation $ 57,229
Unrealized depreciation (1,022,344)
-----------
Net unrealized depreciation $ (965,115)
===========
</TABLE>
See notes to financial statements.
10
<PAGE> 13
--------------------------------------------------------------------------------
ASSET MANAGEMENT FUND
U.S. GOVERNMENT MORTGAGE SECURITIES PORTFOLIO
STATEMENT OF NET ASSETS
APRIL 30, 2000 (UNAUDITED)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PERCENTAGE
OF NET PAR
ASSETS MATURITY (000) VALUE
------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
AGENCY OBLIGATIONS.................................... 2.3%
Freddie Mac
5.75% 4/15/08 $ 2,000 $ 1,813,125
-----------
TOTAL AGENCY OBLIGATIONS
(Cost $1,893,490) 1,813,125
MORTGAGE RELATED SECURITIES........................... 80.4%
6 Mo. London Interbank Offering Rate (LIBOR) Based
ARMS
Freddie Mac
7.90% 10/1/24 3,523 3,610,581
15 Yr. Securities
Freddie Mac
6.00% 12/1/13 4,416 4,140,332
Government National Mortgage Association
6.50% 5/15/14 9,332 8,961,289
-----------
13,101,621
30 Yr. Securities
Government National Mortgage Association
9.00%, 11/15/04 to 10/15/21 4,404 4,565,994
10.00% 3/15/19 216 226,572
7.50%, 2/15/24 to 12/15/29 14,326 14,088,749
8.50% 6/15/24 768 783,018
7.00% 4/15/27 12,185 11,720,910
6.50% 4/15/28 2,995 2,808,596
6.00%, 11/15/28 to 1/15/29 7,828 7,113,942
-----------
41,307,781
BALLOONS
Freddie Mac
5.50% 2/1/07 4,247 3,970,626
-----------
TOTAL MORTGAGE RELATED SECURITIES
(Cost $62,229,156) 61,990,609
------------------------------------------------------------------------------------------------------
See notes to financial statements.
</TABLE>
11
<PAGE> 14
--------------------------------------------------------------------------------
ASSET MANAGEMENT FUND
U.S. GOVERNMENT MORTGAGE SECURITIES PORTFOLIO (CONTINUED)
STATEMENT OF NET ASSETS
APRIL 30, 2000 (UNAUDITED)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PERCENTAGE
OF NET PAR
ASSETS MATURITY (000) VALUE
------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
U.S. TREASURY OBLIGATIONS............................. 11.4%
U.S. Treasury Notes
6.25% 8/31/02 $ 3,000 $ 2,972,813
5.25% 5/15/04 4,000 3,815,000
6.50% 2/15/10 2,000 2,040,000
-----------
TOTAL U.S. TREASURY OBLIGATIONS
(Cost $8,874,759) 8,827,813
REPURCHASE AGREEMENTS................................. 4.4%
Barclays Capital, 5.70% (Agreement dated 4/28/00 to
be repurchased at $3,388,609 on 5/1/00;
collateralized by $3,370,000 U.S. Treasury Notes,
8.75%, due 8/15/00. The market value of the
collateral is $3,455,260) 5/1/00 3,387 3,387,000
-----------
TOTAL REPURCHASE AGREEMENTS
(Cost $3,387,000) 3,387,000
TOTAL INVESTMENTS..................................... 98.5%
(Cost $76,384,405)(a) 76,018,547
OTHER ASSETS IN EXCESS OF LIABILITIES................. 1.5% 1,166,670
-----------
Net Assets applicable to 7,679,255 Shares of Common
Stock issued and outstanding........................ 100.0% $77,185,217
===========
Net Asset Value, offering and redemption price per
share ($77,185,217/7,679,255) $10.05
-------
-------
</TABLE>
--------------------------------------------------------------------------------
Percentages indicated are based on net assets of $77,163,217.
(a) Represents cost for federal income tax and financial reporting purposes and
differs from value by net unrealized depreciation of securities as follows:
<TABLE>
<S> <C>
Unrealized appreciation $ 888,380
Unrealized depreciation (1,254,238)
-----------
Net unrealized depreciation $ (365,858)
===========
</TABLE>
See notes to financial statements
12
<PAGE> 15
--------------------------------------------------------------------------------
ASSET MANAGEMENT FUND
STATEMENTS OF OPERATIONS
FOR THE SIX MONTHS ENDED APRIL 30, 2000 (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............. $1,660,270 $3,380,082 $25,717,837 $3,180,774 $ 2,716,830
---------- ----------- ----------- ----------- -----------
Operating expenses:
Investment advisory fee... 43,079 139,986 1,792,726 167,899 99,139
Distribution fee -- Class
I...................... 43,033 83,992 995,959 71,957 59,483
Distribution fee --
Class D (a)............ 186 -- -- -- --
Administration fee........ 8,616 16,798 119,515 14,391 11,897
Custodian fee............. 5,925 5,848 17,707 3,835 7,123
Transfer agent fee........ 5,686 1,728 4,022 4,344 1,902
Legal..................... 6,993 10,858 68,323 9,209 2,126
Other..................... 12,826 16,752 84,125 14,408 5,016
---------- ----------- ----------- ----------- -----------
126,344 275,962 3,082,377 286,043 186,686
Fee waivers............... (43,064) -- (1,195,151) (47,971) --
---------- ----------- ----------- ----------- -----------
Total expenses......... 83,280 275,962 1,887,226 238,072 186,686
---------- ----------- ----------- ----------- -----------
Net investment
income............... 1,576,990 3,104,120 23,830,611 2,942,702 2,530,144
---------- ----------- ----------- ----------- -----------
REALIZED AND UNREALIZED GAINS
(LOSSES) FROM INVESTMENT
ACTIVITIES:
Net realized (loss)......... (2,500) (444,295) (1,420,451) (1,704,777) (2,218,333)
Net change in unrealized
appreciation/(depreciation)
of investments............ -- (852,552) 491,963 (186,679) 17,782
---------- ----------- ----------- ----------- -----------
Net (loss) on
investments.......... (2,500) (1,296,847) (928,488) (1,891,456) (2,200,551)
---------- ----------- ----------- ----------- -----------
NET INCREASE IN NET ASSETS
RESULTING FROM OPERATIONS...... $1,574,490 $1,807,273 $22,902,123 $1,051,246 $ 329,593
========== =========== =========== =========== ===========
---------------------------------------------------------------------------------------------------------
</TABLE>
(a) Represents the fees for the period of December 19, 1999 (initial public
investment in Money Market Class D Shares) through April 30, 2000.
See notes to financial statements.
13
<PAGE> 16
--------------------------------------------------------------------------------
ASSET MANAGEMENT FUND
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
----------------------------------------------------------------------------------------------
MONEY MARKET
PORTFOLIO
--------------------------------
SIX MONTHS ENDED YEAR ENDED
APRIL 30, 2000 OCTOBER 31,
(UNAUDITED) 1999
----------------------------------------------------------------------------------------------
<S> <C> <C>
Increase (decrease) in net assets:
Operations:
Net investment income.................................. $ 1,576,990 $ 3,529,497
Net realized (loss).................................... (2,500) --
------------- -------------
Net increase in net assets resulting from
operations...................................... 1,574,490 3,529,497
------------- -------------
Dividends paid to Class I stockholders:
From net investment income............................. (1,575,392) (3,529,497)
From net realized gains................................ -- (761)
Dividends paid to Class D stockholders:(a)
From net investment income............................. (1,598) --
------------- -------------
Total dividends paid to stockholders................. (1,576,990) (3,530,258)
------------- -------------
Capital transactions Class I:
Proceeds from sale of shares........................... 265,286,743 788,825,804
Shares issued to stockholders in reinvestment of
dividends............................................. 1,208,908 2,907,490
Cost of shares repurchased............................. (300,420,760) (758,103,140)
Capital transactions Class D:(a)
Proceeds from sale of shares........................... 106,717 --
Shares issued to stockholders in reinvestment of
dividends............................................. 1,160 --
Cost of shares repurchased............................. (5,956) --
------------- -------------
Net increase (decrease) in net assets from capital
transactions........................................ (33,823,188) 33,630,154
------------- -------------
Total increase (decrease) in net assets.............. (33,825,688) 33,629,393
Net Assets:
Beginning of year......................................... 92,074,159 58,444,766
------------- -------------
End of year............................................... $ 58,248,471 $ 92,074,159
============= =============
----------------------------------------------------------------------------------------------
</TABLE>
(a) Represents the period from December 19, 1999 (initial public investments in
Money Market Class D Shares) through April 30, 2000.
See notes to financial statements.
14
<PAGE> 17
--------------------------------------------------------------------------------
ASSET MANAGEMENT FUND
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
---------------------------------------------------------------------------------------------
SHORT U.S. GOVERNMENT
SECURITIES PORTFOLIO
-------------------------------
SIX MONTHS ENDED YEAR ENDED
APRIL 30, 2000 OCTOBER 31,
(UNAUDITED) 1999
---------------------------------------------------------------------------------------------
<S> <C> <C>
Increase (decrease) in net assets:
Operations:
Net investment income.................................. $ 3,104,120 $ 6,461,712
Net realized (loss).................................... (444,295) (675,404)
Net change in unrealized appreciation/(depreciation) of
investments........................................... (852,552) (2,828,997)
------------ ------------
Net increase in net assets resulting from
operations.......................................... 1,807,273 2,957,311
------------ ------------
Dividends paid to stockholders:
From net investment income............................. (3,095,104) (6,458,738)
------------ ------------
Total dividends paid to stockholders................. (3,095,104) (6,458,738)
------------ ------------
Capital transactions:
Proceeds from sale of shares........................... 730,000 29,405,048
Shares issued to stockholders in reinvestment of
dividends............................................. 1,794,989 4,441,912
Cost of shares repurchased............................. (6,567,958) (29,746,442)
------------ ------------
Net increase (decrease) in net assets from capital
transactions........................................ (4,042,969) 4,100,518
------------ ------------
Total increase (decrease) in net assets.............. (5,330,800) 599,091
Net Assets:
Beginning of year......................................... 114,839,569 114,240,478
------------ ------------
End of year............................................... $109,508,769 $114,839,569
============ ============
---------------------------------------------------------------------------------------------
</TABLE>
See notes to financial statements.
15
<PAGE> 18
--------------------------------------------------------------------------------
<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, 2000 OCTOBER 31, APRIL 30, 2000 OCTOBER 31, APRIL 30, 2000 OCTOBER 31,
(UNAUDITED) 1999 (UNAUDITED) 1999 (UNAUDITED) 1999
----------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
$ 23,830,611 $ 50,833,921 $ 2,942,702 $ 6,074,138 $ 2,530,144 $ 5,337,265
(1,420,451) (4,971,448) (1,704,777) (954,738) (2,218,333) (836,298)
491,963 (1,260,125) (186,679) (2,834,209) 17,782 (3,107,757)
------------- ------------- ------------ ------------ ------------ -----------
22,902,123 44,602,348 1,051,246 2,285,191 329,593 1,393,210
------------- ------------- ------------ ------------ ------------ -----------
(23,452,166) (50,785,092) (2,940,814) (6,074,951) (2,584,196) (5,314,467)
------------- ------------- ------------ ------------ ------------ -----------
(23,452,166) (50,785,092) (2,940,814) (6,074,951) (2,584,196) (5,314,467)
------------- ------------- ------------ ------------ ------------ -----------
38,296,705 300,038,599 30,000 31,163,180 624,552 15,324,674
11,334,435 30,577,753 1,363,182 3,464,307 1,509,840 2,848,770
(192,635,618) (342,375,271) (9,913,380) (28,566,059) (9,944,925) (7,175,510)
------------- ------------- ------------ ------------ ------------ -----------
(143,004,478) (11,758,919) (8,520,198) 6,061,428 (7,810,533) 10,997,934
------------- ------------- ------------ ------------ ------------ -----------
(143,554,521) (17,941,663) (10,409,766) 2,271,668 (10,065,136) 7,076,677
877,608,062 895,549,725 101,710,094 99,438,426 87,250,353 80,173,676
------------- ------------- ------------ ------------ ------------ -----------
$ 734,053,541 $ 877,608,062 $ 91,300,328 $101,710,094 $ 77,185,217 $87,250,353
============= ============= ============ ============ ============ ===========
----------------------------------------------------------------------------------------------------------
</TABLE>
16
<PAGE> 19
--------------------------------------------------------------------------------
ASSET MANAGEMENT FUND
MONEY MARKET PORTFOLIO
FINANCIAL HIGHLIGHTS -- CLASS I
(FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SIX MONTHS
ENDED YEAR ENDED OCTOBER 31,
APRIL 30, 2000 ----------------------------------------------------
(UNAUDITED) 1999 1998 1997 1996 1995
<S> <C> <C> <C> <C> <C> <C>
--------------------------------------------------------------------------------------------------------
Net asset value, beginning of
year........................... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
-------- -------- -------- -------- -------- --------
Income from investment
operations:
---------------------------------
Net investment income.......... 0.0270 0.0480 0.0523 0.0513 0.0516 0.0547
Net realized and unrealized
gain (loss) on
investments................. --(a) -- -- -- -- --
-------- -------- -------- -------- -------- --------
Total from investment
operations............. 0.0270 0.0480 0.0523 0.0513 0.0516 0.0547
-------- -------- -------- -------- -------- --------
Less distributions:
-------------------
Dividends paid to stockholders:
From net investment
income.................... (0.0270) (0.0480) (0.0523) (0.0513) (0.0516) (0.0547)
From net realized gains..... -- --(a) -- -- -- --
-------- -------- -------- -------- -------- --------
Total distributions to
stockholders........... (0.0270) (0.0480) (0.0523) (0.0513) (0.0516) (0.0547)
-------- -------- -------- -------- -------- --------
Net asset value, end of period... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
======== ======== ======== ======== ======== ========
Total return..................... 2.77% 4.94% 5.35% 5.25% 5.29% 5.60%
Ratios/Supplemental data:
----------------------------
Net assets, end of the period
(in 000's).................. $ 58,146 $ 92,074 $ 58,445 $ 48,104 $ 69,484 $ 36,869
Ratio of expenses to average
net assets.................. 0.29%(b) 0.25% 0.25% 0.26% 0.24% 0.24%
Ratio of net investment income
to average net assets....... 5.48%(b) 4.81% 5.22% 5.14% 5.15% 5.40%
Ratio of expenses to average
net assets*................. 0.44%(b) 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) Gain (loss) and/or distributions per share were less than $0.005.
(b) Annualized.
See notes to financial statements.
17
<PAGE> 20
--------------------------------------------------------------------------------
ASSET MANAGEMENT FUND
MONEY MARKET PORTFOLIO
FINANCIAL HIGHLIGHTS -- CLASS D
(FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
DECEMBER 19,
1999 TO
APRIL 30, 2000
(UNAUDITED)(A)
<S> <C>
----------------------------------------------------------------------------
Net asset value, beginning of year.......................... $ 1.00
-------
Income from investment operations:
---------------------------------------
Net investment income..................................... 0.0180
Net realized and unrealized gain (loss) on investments.... --(b)
-------
Total from investment operations..................... 0.0180
-------
Less distributions:
-------------------
Dividends paid to stockholders:
From net investment income............................. (0.018)
-------
Net asset value, end of year................................ $ 1.00
=======
Total return................................................ 1.84%(d)
Ratios/Supplemental data:
----------------------------
Net assets, end of the period (in 000's).................. $ 102
Ratio of expenses to average net assets................... 0.80%(c)
Ratio of net investment income to average net assets...... 5.19%(c)
Ratio of expenses to average net assets*.................. 0.90%(c)
----------------------------------------------------------------------------
</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) Period from initial public investment.
(b) Net realized/unrealized gain (loss) per share was less than $0.005.
(c) Annualized.
(d) Represents the total return for the period from December 19, 1999 to April
30, 2000.
See notes to financial statements.
18
<PAGE> 21
--------------------------------------------------------------------------------
ASSET MANAGEMENT FUND
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, 2000 ----------------------------------------------------
(UNAUDITED) 1999 1998 1997 1996 1995
-----------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of year... $ 10.36 $ 10.66 $ 10.55 $ 10.56 $ 10.68 $ 10.45
-------- -------- -------- -------- -------- --------
Income from investment operations:
-------------------------------------
Net investment income.............. 0.2839 0.5600 0.6144 0.6273 0.6370 0.6746
Net realized and unrealized gain
(loss) on investments............. (0.1209) (0.3000) 0.1100 (0.0100) (0.1200) 0.2300
-------- -------- -------- -------- -------- --------
Total from investment
operations.................. 0.1630 0.2600 0.7244 0.6173 0.5170 0.9046
-------- -------- -------- -------- -------- --------
Less distributions:
--------------------
Dividends paid to stockholders from
net investment income............. (0.2830) (0.5600) (0.6144) (0.6273) (0.6370) (0.6746)
-------- -------- -------- -------- -------- --------
Net asset value, end of period....... $ 10.24 $ 10.36 $ 10.66 $ 10.55 $ 10.56 $ 10.68
======== ======== ======== ======== ======== ========
Total return......................... 1.60% 2.51% 7.08% 6.04% 4.99% 8.94%
Ratios/Supplemental data:
------------------------------
Net assets, end of the period (in
000's)............................ $109,509 $114,840 $114,240 $112,304 $176,892 $167,343
Ratio of expenses to average net
assets............................ 0.49%(a) 0.49% 0.50% 0.50% 0.48% 0.49%
Ratio of net investment income to
average net assets................ 5.54%(a) 5.35% 5.83% 5.97% 6.02% 6.42%
Portfolio turnover rate............ 41% 155% 84% 75% 69% 112%
</TABLE>
--------------------------------------------------------------------------------
(a) Annualized
See notes to financial statements.
19
<PAGE> 22
--------------------------------------------------------------------------------
ASSET MANAGEMENT FUND
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, 2000 --------------------------------------------------------
(UNAUDITED) 1999 1998 1997 1996 1995
------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of
year........................... $ 9.84 $ 9.91 $ 9.99 $ 9.95 $ 9.94 $ 9.78
-------- -------- -------- -------- -------- --------
Income from investment operations:
----------------------------------------
Net investment income.......... 0.2937 0.5290 0.5676 0.6036 0.5958 0.6035
Net realized and unrealized
gain (loss) on
investments................. (0.0047) (0.0700) (0.0800) 0.0400 0.0100 0.1600
-------- -------- -------- -------- -------- --------
Total from investment
operations............. 0.2890 0.4590 0.4876 0.6436 0.6058 0.7635
-------- -------- -------- -------- -------- --------
Less distributions:
--------------------
Dividends paid to stockholders
from net investment
income...................... (0.2890) (0.5290) (0.5676) (0.6036) (0.5958) (0.6035)
-------- -------- -------- -------- -------- --------
Net asset value, end of period... $ 9.84 $ 9.84 $ 9.91 $ 9.99 $ 9.95 $ 9.94
======== ======== ======== ======== ======== ========
Total return..................... 2.97% 4.73% 5.00% 6.65% 6.27% 8.02%
Ratios/Supplemental data:
------------------------------
Net assets, end of the period
(in 000's).................. $734,054 $877,608 $895,550 $751,334 $796,016 $891,538
Ratio of expenses to average
net assets.................. 0.47%(a) 0.48% 0.49% 0.49% 0.47% 0.48%
Ratio of net investment income
to average net assets....... 5.98%(a) 5.34% 5.70% 6.07% 6.01% 6.12%
Ratio of expenses to average
net assets*................. 0.77%(a) 0.78% 0.79% 0.79% 0.77% 0.78%
Portfolio turnover rate........ 39% 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.
(a) Annualized.
See notes to financial statements.
20
<PAGE> 23
--------------------------------------------------------------------------------
ASSET MANAGEMENT FUND
INTERMEDIATE MORTGAGE SECURITIES PORTFOLIO
FINANCIAL HIGHLIGHTS
(FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SIX MONTHS
ENDED YEAR ENDED OCTOBER 31,
APRIL 30, 2000 ----------------------------------------------------
(UNAUDITED) 1999 1998 1997 1996 1995
----------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of
year............................. $ 9.33 $ 9.66 $ 9.62 $ 9.52 $ 9.68 $ 9.34
-------- -------- -------- -------- -------- --------
Income from investment operations:
-----------------------------------
Net investment income............ 0.2822 0.5490 0.5932 0.6245 0.6101 0.6211
Net realized and unrealized gain
(loss) on investments......... (0.1802) (0.3300) 0.0761 0.1000 (0.1600) 0.3400
-------- -------- -------- -------- -------- --------
Total from investment
operations............... 0.1020 0.2190 0.6693 0.7245 0.4501 0.9611
-------- -------- -------- -------- -------- --------
Less distributions:
--------------------
Dividends paid to stockholders:
From net investment income.... (0.2820) (0.5490) (0.5932) (0.6245) (0.6101) (0.6211)
In excess of net investment
income...................... -- -- (0.0361) -- -- --
-------- -------- -------- -------- -------- --------
Total distributions to
stockholders............. (0.2820) (0.5490) (0.6293) (0.6245) (0.6101) (0.6211)
-------- -------- -------- -------- -------- --------
Net asset value, end of period..... $ 9.15 $ 9.33 $ 9.66 $ 9.62 $ 9.52 $ 9.68
======== ======== ======== ======== ======== ========
Total return....................... 1.12% 2.32% 7.18% 7.90% 4.82% 10.63%
Ratios/Supplemental data:
------------------------------
Net assets, end of the period (in
000's)........................ $ 91,300 $101,710 $ 99,438 $ 77,982 $ 92,289 $187,087
Ratio of expenses to average net
assets........................ 0.50%(a) 0.48% 0.49% 0.49% 0.44% 0.38%
Ratio of net investment income to
average net assets............ 6.13%(a) 5.78% 6.17% 6.58% 6.38% 6.55%
Ratio of expenses to average net
assets*....................... 0.60%(a) 0.58% 0.59% 0.59% 0.58% 0.58%
Portfolio turnover rate.......... 74% 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.
(a) Annualized.
See notes to financial statements.
21
<PAGE> 24
--------------------------------------------------------------------------------
ASSET MANAGEMENT FUND
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, 2000 -----------------------------------------------
(UNAUDITED) 1999 1998 1997 1996 1995
----------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of year....... $ 10.26 $ 10.73 $ 10.67 $ 10.51 $ 10.68 $ 10.23
-------- ------- ------- ------- ------- -------
Income from investment operations:
-----------------------------------------
Net investment income.................. 0.3222 0.6416 0.6947 0.7344 0.7479 0.7703
Net realized and unrealized gain (loss)
on investments........................ (0.2032) (0.4726) 0.0877 0.1600 (0.1700) 0.4500
-------- ------- ------- ------- ------- -------
Total from investment
operations..................... 0.1190 0.1690 0.7824 0.8944 0.5779 1.2203
-------- ------- ------- ------- ------- -------
Less distributions:
--------------------
Dividends paid to stockholders:
From net investment income.......... (0.3290) (0.6390) (0.6947) (0.7344) (0.7479) (0.7703)
In excess of net investment
income............................ -- -- (0.0277) -- -- --
-------- ------- ------- ------- ------- -------
Total distributions to
stockholders................... (0.3290) (0.6390) (0.7224) (0.7344) (0.7479) (0.7703)
-------- ------- ------- ------- ------- -------
Net asset value, end of period........... $ 10.05 $ 10.26 $ 10.73 $ 10.67 $ 10.51 $ 10.68
======== ======= ======= ======= ======= =======
Total return............................. 1.19% 1.63% 7.58% 8.87% 5.63% 12.37%
Ratios/Supplemental data:
------------------------------
Net assets, end of the period (in
000's).............................. $ 77,185 $87,250 $80,174 $53,572 $57,267 $62,258
Ratio of expenses to average net
assets.............................. 0.47%(a) 0.52% 0.53% 0.53% 0.52% 0.53%
Ratio of net investment income to
average net assets.................... 6.37%(a) 6.13% 6.48% 7.01% 7.10% 7.39%
Portfolio turnover rate................ 54% 73% 93% 135% 165% 177%
</TABLE>
--------------------------------------------------------------------------------
(a) Annualized
See notes to financial statements.
22
<PAGE> 25
--------------------------------------------------------------------------------
ASSET MANAGEMENT FUND
NOTES TO FINANCIAL STATEMENTS
APRIL 30, 2000 (UNAUDITED)
--------------------------------------------------------------------------------
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 April 30, 2000, 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"). Effective October 21, 1999, the Money Market Portfolio began
offering Class D shares. Prior to that date the Portfolio offered one class
only. 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.
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 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.
23
<PAGE> 26
--------------------------------------------------------------------------------
ASSET MANAGEMENT FUND
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
APRIL 30, 2000 (UNAUDITED)
--------------------------------------------------------------------------------
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 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 six months ended April 30, 2000. The waiver amounted to $796,767.
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, 2000. The waiver amounted to $47,971.
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 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 100% of its fee for Class I and 17% for Class D during the six months
ended April 30, 2000. The Money Market waiver amounted to $43,033 for Class I
and $31 for Class D.
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, 2000. The waiver amounted to
$398,384.
24
<PAGE> 27
--------------------------------------------------------------------------------
ASSET MANAGEMENT FUND
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
APRIL 30, 2000 (UNAUDITED)
--------------------------------------------------------------------------------
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.
BISYS Fund Services Ohio, Inc. (BISYS, Ohio), serves the Fund as administrator
and transfer agent. 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.
--------------------------------------------------------------------------------
C. Transactions in shares of the Fund for the six months ended April 30, 2000
and the year ended October 31, 1999, were as follows:
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MONEY MARKET PORTFOLIO
-------------------------------
SIX MONTHS ENDED YEAR ENDED
APRIL 30, 2000 OCTOBER 31,
(UNAUDITED) 1999
--------------------------------------------------------------------------------------------
<S> <C> <C>
Share transactions Class I:
Sale of shares.............................................. 265,286,744 788,825,804
Shares issued to stockholders in reinvestment dividends..... 1,208,908 2,907,490
Shares repurchased.......................................... (300,420,760) (758,103,140)
------------ ------------
Net increase................................................ (33,925,108) 33,630,154
Shares outstanding
Beginning of period....................................... 92,071,765 58,441,611
------------ ------------
End of period............................................. 58,146,657 92,071,765
============ ============
Share transactions Class D:(a)
Sale of shares.............................................. 106,717 --
Shares issued to stockholders in reinvestment dividends..... 1,160 --
Shares repurchased (5,956) --
------------ ------------
Net increase................................................ 101,921 --
Shares outstanding
Beginning of period....................................... -- --
------------ ------------
End of period............................................. 101,921 --
============ ============
</TABLE>
--------------------------------------------------------------------------------
(a) For the period from December 19, 1999 (initial public investment) though
April 30, 2000.
25
<PAGE> 28
--------------------------------------------------------------------------------
ASSET MANAGEMENT FUND
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
APRIL 30, 2000 (UNAUDITED)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHORT U.S. GOVERNMENT ADJUSTABLE RATE MORTGAGE (ARM)
SECURITIES PORTFOLIO PORTFOLIO
----------------------------------------------------------------
SIX MONTHS ENDED YEAR ENDED SIX MONTHS ENDED YEAR ENDED
APRIL 30, 2000 OCTOBER 31, APRIL 30, 2000 OCTOBER 31,
(UNAUDITED) 1999 (UNAUDITED) 1999
--------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Share transactions:
Sale of shares...................... 71,188 2,783,895 3,892,231 30,262,704
Shares issued to stockholders in
reinvestment dividends........... 174,440 423,288 1,151,677 3,088,423
Shares repurchased.................. (638,553) (2,836,326) (19,572,009) (34,590,248)
---------- ---------- ----------- -----------
Net increase........................ (392,925) 370,857 (14,528,101) (1,239,121)
Shares outstanding
Beginning of period.............. 11,082,741 10,711,884 89,154,326 90,393,447
---------- ---------- ----------- -----------
End of period.................... 10,689,816 11,082,741 74,626,225 89,154,326
========== ========== =========== ===========
</TABLE>
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
INTERMEDIATE MORTGAGE U.S. GOVERNMENT MORTGAGE
SECURITIES PORTFOLIO SECURITIES PORTFOLIO
----------------------------------------------------------------
SIX MONTHS ENDED YEAR ENDED SIX MONTHS ENDED YEAR ENDED
APRIL 30, 2000 OCTOBER 31, APRIL 30, 2000 OCTOBER 31,
(UNAUDITED) 1999 (UNAUDITED) 1999
--------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Share transactions:
Sale of shares...................... 3,207 3,243,087 3,773 1,433,797
Shares issued to stockholders in
reinvestment dividends........... 147,660 364,694 149,075 271,703
Shares repurchased.................. (1,075,673) (2,993,651) (976,362) (672,809)
---------- ---------- ----------- -----------
Net increase........................ (924,806) 614,130 (823,514) 1,032,691
Shares outstanding
Beginning of period.............. 10,906,311... 10,292,181 8,502,769 7,470,078
---------- ---------- ----------- -----------
End of period.................... 9,981,505 10,906,311 7,679,255 8,502,769
========== ========== =========== ===========
</TABLE>
--------------------------------------------------------------------------------
D. At April 30, 2000, 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............ $58,250,971 $118,538,055 $764,274,253 $108,832,341 $84,329,812
Accumulated net realized
gains (losses)........... (2,500) (8,158,250) (32,938,563) (16,566,898) (6,778,737)
Net unrealized
appreciation/depreciation
of investments........... -0- (871,036) 2,717,851 (965,115) (365,858)
----------- ------------ ------------ ------------ -----------
$58,248,471 $109,508,769 $734,053,541 $ 91,300,328 $77,185,217
=========== ============ ============ ============ ===========
</TABLE>
--------------------------------------------------------------------------------
26
<PAGE> 29
--------------------------------------------------------------------------------
ASSET MANAGEMENT FUND
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
APRIL 30, 2000 (UNAUDITED)
--------------------------------------------------------------------------------
E. For the six months ended April 30, 2000, 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................................. $40,427,319 $290,644,126 $66,271,040 $40,486,183
=========== ============ =========== ===========
Sales and maturities...................... $42,646,298 $377,295,296 $74,374,750 $50,370,712
=========== ============ =========== ===========
----------------------------------------------------------------------------------------------------
</TABLE>
--------------------------------------------------------------------------------
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 07901
800-553-6159
--------------------------------------------------------------------------------
ACCOUNT INFORMATION
--------------------------------------------------------------------------------
To obtain performance data and place purchase orders, call toll free
800-527-3713.
27
<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 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
