REPORT OF INDEPENDENT ACCOUNTANTS
To the Board of Directors of
Asset Management Fund
In planning and performing our audit of the financial
statements of Asset Management Fund, consisting of the
Money Market, Short U.S. Government Securities, Adjustable
Rate Mortgage (ARM), Intermediate Mortgage Securities and
U.S. Government Mortgage Securities portfolios (all portfolios
collectively referred to as the "Fund") for the year ended
October 31 2000, we considered its internal control,
including control activities for safeguarding securities,
in order to determine our auditing procedures for the
purpose of expressing our opinion on the financial
statements and to comply with the requirements of Form
N-SAR, not to provide assurance on internal control.
The management of the Fund is responsible for establishing
and maintaining internal control. In fulfilling this
responsibility, estimates and judgements by management
are required to assess the expected benefits and related
costs of controls. Generally, controls that are relevant
to an audit pertain to the entity's objective of preparing
financial statements for external purposes that are fairly
presented in conformity with generally accepted accounting
principles. Those controls include the safeguarding of
assets against unauthorized acquisition, use or disposition.
Because of inherent limitations in internal controls,
errors or fraud may occur and not be detected. Also,
projection of any evaluation of internal control to future
periods is subject to the risk that it may become
inadequate because of changes in conditions or that the
effectiveness of the design and operation may deteriorate.
Our consideration of internal control would not necessarily
disclose all matters in internal control that might be
material weaknesses under standards established by the
American Institute of Certified Public Accountants. A
material weakness is a condition in which the design or
operation of one or more of the internal control components
does not reduce to a relatively low level the risk that
misstatements caused by errors or fraud in amounts
that would be material in relation to the financial
statements and financial highlights being audited may
occur and not be detected within a timely period by
employees in the normal course of performing their assigned
functions. However, we noted no matters involving internal
control and its operation, including controls over
safeguarding securities, that we consider to be material
weaknesses as defined above as of October 31, 2000.
This report is intended solely for the information and use
of the Board of Directors, management and the Securities
and Exchange Commission and is not intended to be and
should not be used by anyone other than these specified parties.
PricewaterhouseCoopers LLP
Two Commerce Square
Philadelphia, Pennsylvania
December 18, 2000
