<PAGE> 1
[AMF LOGO]
ASSET MANAGEMENT FUND
230 West Monroe Street
Chicago, IL 60606
[AMF LOGO]
ASSET MANAGEMENT FUND
ANNUAL REPORT
OCTOBER 31, 2000
<PAGE> 2
CHAIRMAN'S MESSAGE
December 18, 2000
Dear Stockholders,
If you have been reading our "AMF Quarterly Update" over this past year, you
undoubtedly have seen the outstanding performance of the portfolios (as
presented in the enclosed Annual Report to Stockholders for the year ending
October 31, 2000), as well as gained insight into the portfolios. The management
team's approach to a successful and active portfolio management style has been
rewarding in these volatile interest rate environments. All of the portfolios
have maintained high ratings from the major rating agencies which we have
readily displayed in various mailings and which has recently appeared as an
advertisement in the Community Banker Magazine.
For the past eighteen years, the Asset Management Fund has been committed to
bringing well-managed and desirable fixed income portfolios to an array of
depository institutions with investment needs that can be met with each
portfolio design. During the year, we launched our new AMF Money Market
Portfolio Class D, which was designed to facilitate sweep accounts for financial
institutions that wanted a competitive product to deliver to their corporate and
high net worth customers. We have been excited to see the interest develop in
this portfolio and continue to witness a rapidly growing base of money market
sweep assets building within the industry.
We believe that the loyalty of our stockholders is an expression of their
belief and recognition that a static and unmanaged portfolio cannot respond
effectively to changing market conditions. Given the events of the past year in
the fixed income markets, it is apparent that portfolios, which do not or cannot
respond to changing interest rate environments, will fall behind. One year ago,
the market's focus was on the impending Y2K crisis, which obscured two other
events that were visible on the horizon (the pending acceleration of the
government debt pay down and the Federal Reserve's restrictive monetary policy).
As these two factors unfolded, the yield curve radically inverted, and credit
spreads widened due to a surge in the issuance of agency and corporate debt. In
this rapidly changing environment it is essential to have the ability to respond
and modify a portfolio to successfully manage interest rate risk.
We appreciate your confidence in AMF and encourage you to contact our
portfolio managers with your questions. We would encourage you to become
acquainted with our web site at www.amffunds.com.
Sincerely,
/s/ Rodger D. Shay
Rodger D. Shay
Chairman
Asset Management Fund
This report has been prepared for the information of the stockholders of the
Asset Management Fund. It is not to be construed as an offering to sell or buy
any shares of the Fund. Such an offering is made only by the prospectus.
<PAGE> 3
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ASSET MANAGEMENT FUND REVIEW
SHORT U.S. GOVERNMENT SECURITIES PORTFOLIO - Short-term rates advanced
substantially over the last 12 months ending October 31, 2000. The yield on the
year bill rose by 100 basis points while the yield on the two-year treasury rose
by 37 basis points. Clearly this section of the market suffered as the curve
inverted. The portfolio enlarged its commitment to short duration agency CMO's
and ARM's in order to increase yield and reduce volatility. The portfolio posted
a 5.77% return on the year.
ADJUSTABLE RATE MORTGAGE (ARM) PORTFOLIO - Because of upward resetting
coupons, the portfolio avoided the carnage visited upon the short-end of the
curve. As it became apparent that the treasury was likely to discontinue
issuance of the 1-year treasury bill in the foreseeable future, the ARM
portfolio reduced the size of its commitment to the 1-year CMT index and
increased its holdings of securities utilizing the 11th District COFI index. The
portfolio also reduced the size of its short duration, fixed rate assets. Both
transactions were much to the portfolio's advantage over the last twelve months.
The portfolio posted a return of 6.63% for the 12-month period.
INTERMEDIATE MORTGAGE SECURITIES PORTFOLIO - The portfolio continued to
concentrate its assets in shorter duration mortgage securities with final
maturities of no longer than 15 years. The portfolio did extend the size and
duration of its treasury component as the year progressed, but never to the
extent that the portfolio's overall duration exceeded 3 1/2 years. Also, in
order to maintain yield without adding duration, the portfolio established a
small (8.1% of net assets) COFI ARM position. The portfolio's total return for
the 12-month period ending October 31, 2000 was 6.47%.
U.S. GOVERNMENT MORTGAGE SECURITIES PORTFOLIO - The portfolio extended the
duration, increased the size of its treasury portfolio and reduced the non-GNMA
portion of its mortgage portfolio to approximately 12% -- both moves benefited
the portfolio's performance. This portfolio also added a small COFI ARM position
(6.5% of net assets) in lieu of adding equivalent duration treasuries and this
worked to the portfolio's advantage. The portfolio's total return for the
12-month period ending October 31, 2000 was 6.90%.
<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
[GRAPH]
<TABLE>
<CAPTION>
SHORT U.S. GOVERNMENT LEHMAN SHORT GOVERNMENT 1-3
SECURITIES PORTFOLIO YEAR INDEX
--------------------- ---------------------------
<S> <C> <C>
1990 10000 10000
1991 11135 11240
1992 12106 12155
1993 12855 12859
1994 12977 13008
1995 14138 14065
1996 14843 14905
1997 15740 15871
1998 16854 17086
1999 17277 17593
2000 18275 18672
</TABLE>
<TABLE>
<S> <C> <C> <C> <C> <C>
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
------------------------------
5.77% 5.27% 6.21%
</TABLE>
--------------------------------------------------------------------------------
ADJUSTABLE RATE MORTGAGE (ARM) PORTFOLIO
[GRAPH]
<TABLE>
<CAPTION>
ADJUSTABLE RATE MORTGAGE LEHMAN ADJUSTABLE RATE
(ARM) PORTFOLIO MORTGAGE INDEX
------------------------ ----------------------
<S> <C> <C>
9/18/91 10000 10000
1991 10090 10090
1992 10600 10680
1993 11104 11264
1994 11331 11292
1995 12239 12444
1996 13007 13323
1997 13872 14321
1998 14565 15208
1999 15254 15945
2000 16264 17098
</TABLE>
<TABLE>
<S> <C> <C> <C> <C> <C>
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*
------------------------------
6.63% 5.85% 5.48%
*From September 18, 1991
</TABLE>
--------------------------------------------------------------------------------
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
-------------------------------
INVESTMENT
COMPARISON
Comparison of change in
value of
$10,000 investment for
the years
ended October 31
--------------------------------------------------------------------------------
INTERMEDIATE MORTGAGE SECURITIES PORTFOLIO
[GRAPH]
<TABLE>
<CAPTION>
INTERMEDIATE MORTGAGE
SECURITIES PORTFOLIO LEHMAN U.S. MORTGAGE INDEX
--------------------- --------------------------
<S> <C> <C>
1990 10000 10000
1991 11642 11617
1992 12776 12643
1993 13840 13641
1994 13674 13439
1995 15128 15402
1996 15858 16468
1997 17111 17970
1998 18341 19282
1999 18767 19859
2000 19982 21363
</TABLE>
<TABLE>
<S> <C> <C> <C> <C> <C>
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
------------------------------
6.47% 5.72% 7.17%
</TABLE>
--------------------------------------------------------------------------------
U.S. GOVERNMENT MORTGAGE SECURITIES PORTFOLIO
[GRAPH]
<TABLE>
<CAPTION>
U.S. GOVERNMENT MORTGAGE
SECURITIES PORTFOLIO LEHMAN U.S. MORTGAGE INDEX
------------------------ --------------------------
<S> <C> <C>
1990 10000 10000
1991 11568 11617
1992 12483 12643
1993 13453 13641
1994 13205 13439
1995 14839 15402
1996 15676 16468
1997 17065 17970
1998 18358 19282
1999 18657 19859
2000 19945 21363
</TABLE>
<TABLE>
<S> <C> <C> <C> <C> <C>
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 Portfolio
Average Annual Return
One Five Ten
Year Year Year
------------------------------
6.90% 6.09% 7.15%
</TABLE>
--------------------------------------------------------------------------------
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> 6
NOTES
<PAGE> 7
--------------------------------------------------------------------------------
ASSET MANAGEMENT FUND
MONEY MARKET PORTFOLIO
STATEMENT OF NET ASSETS
OCTOBER 31, 2000
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PERCENTAGE
OF NET
ASSETS MATURITY PAR VALUE
<S> <C> <C> <C> <C>
----------------------------------------------------------------------------------------------------
AGENCY OBLIGATIONS.............................. 95.9%
Freddie Mac -- discount note
6.40% 11/1/00 $11,836,000 $11,836,000
6.43% 11/14/00 10,000,000 9,976,781
6.44% 11/21/00 10,000,000 9,964,222
-----------
31,777,003
Student Loan Marketing Association* -- weekly reset
6.79% 11/1/00 5,000,000 5,000,269
6.62% 11/7/00 8,700,000 8,699,159
6.82% 11/7/00 4,000,000 4,000,858
-----------
17,700,286
-----------
TOTAL AGENCY OBLIGATIONS (Cost $49,477,289) 49,477,289
REPURCHASE AGREEMENTS........................... 3.9%
Barclays Capital, 6.50% (Agreement dated
10/31/00, to be repurchased at $2,000,361
on 11/1/00; collateralized by $1,565,000
U.S. Treasury Notes, 8.50%, due 2/15/20.
The market value of the collateral is
$2,032,618) 2,000,000 2,000,000
-----------
TOTAL REPURCHASE AGREEMENTS (Cost $2,000,000) 2,000,000
TOTAL INVESTMENTS IN SECURITIES................. 99.8% 51,477,289
(Cost $51,477,289) (a)
OTHER ASSETS IN EXCESS OF LIABILITIES........... 0.2% 113,179
-----------
Net Assets applicable to 51,602,818 Shares of
Common Stock issued and outstanding........... 100.0% $51,590,468
===========
Net Asset Value, offering and redemption price
per share ($51,590,468 / 51,602,819) $1.00
=====
</TABLE>
--------------------------------------------------------------------------------
* Variable rate investments. The rate presented is the rate in effect at
October 31, 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> 8
--------------------------------------------------------------------------------
ASSET MANAGEMENT FUND
SHORT U.S. GOVERNMENT SECURITIES PORTFOLIO
STATEMENT OF NET ASSETS
OCTOBER 31, 2000
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PERCENTAGE
OF NET
ASSETS MATURITY PAR VALUE
-----------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
ADJUSTABLE RATE MORTGAGE-RELATED SECURITIES*...... 20.4%
1 Yr. Constant Maturity Treasury Based ARMS
Fannie Mae
8.02% 3/1/30 $6,796,760 $ 6,917,827
Cost of Funds Index Based ARMS
Fannie Mae
6.51% 5/25/21 113,063 112,497
6.61% 4/1/25 3,640,663 3,592,879
Freddie Mac
6.61% 10/15/22 6,618,764 6,536,030
-----------
10,241,406
HYBRID ARMS
Fannie Mae
6.65% 4/1/30 2,448,454 2,435,447
-----------
TOTAL ADJUSTABLE RATE MORTGAGE-
RELATED SECURITIES* (Cost $19,482,370) 19,594,680
AGENCY OBLIGATIONS................................ 15.1%
Federal Home Loan Bank
6.75% 5/1/02 5,000,000 5,019,531
Freddie Mac
5.75% 7/15/03 4,000,000 3,931,250
Freddie Mac -- discount note
6.38% 11/7/00 5,562,000 5,555,100
-----------
TOTAL AGENCY OBLIGATIONS (Cost $14,360,425) 14,505,881
FIXED RATE MORTGAGE-RELATED SECURITIES............ 13.8%
Fannie Mae
5.75% 2/25/16 5,000,000 4,912,500
6.00% 8/25/17 5,000,000 4,943,750
5.85% 9/25/17 266,426 264,761
-----------
10,121,011
Freddie Mac
7.00% 12/15/06 3,153,596 3,162,465
-----------
TOTAL FIXED RATE MORTGAGE-
RELATED SECURITIES (Cost $13,171,427) 13,283,476
</TABLE>
--------------------------------------------------------------------------------
See notes to financial statements.
2
<PAGE> 9
--------------------------------------------------------------------------------
ASSET MANAGEMENT FUND
SHORT U.S. GOVERNMENT SECURITIES PORTFOLIO (CONTINUED)
STATEMENT OF NET ASSETS
OCTOBER 31, 2000
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PERCENTAGE
OF NET
ASSETS MATURITY PAR VALUE
-----------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
U.S. TREASURY OBLIGATIONS......................... 47.9%
U.S. Treasury Notes
6.50% 8/31/01 $6,000,000 $ 6,005,625
6.50% 2/28/02 5,000,000 5,018,750
5.75% 11/30/02 6,000,000 5,975,625
6.25% 2/15/03 6,000,000 6,039,375
5.38% 6/30/03 4,000,000 3,950,000
5.75% 8/15/03 7,000,000 6,975,938
6.00% 8/15/04 7,000,000 7,035,000
5.88% 11/15/04 5,000,000 5,006,250
-----------
TOTAL U.S. TREASURY OBLIGATIONS (Cost $45,643,078) 46,006,563
REPURCHASE AGREEMENTS............................. 2.2%
Barclays Capital, 6.50% (Agreement dated
10/31/00, to be repurchased at $2,092,378 on
11/1/00; collateralized by $1,640,000 U.S.
Treasury Notes, 8.50%, due 2/15/20. The
market value of the collateral is $2,130,028) 2,092,000 2,092,000
-----------
TOTAL REPURCHASE AGREEMENTS (Cost $2,092,000) 2,092,000
TOTAL INVESTMENTS IN SECURITIES
(Cost $94,749,300) (a).......................... 99.4% 95,482,600
OTHER ASSETS IN EXCESS OF LIABILITIES............. 0.6% 615,329
-----------
Net Assets applicable to 9,297,702 Shares of
Common Stock issued and outstanding............. 100.0% $96,097,929
===========
Net Asset Value, offering and redemption price per
share ($96,097,929 / 9,297,702) $10.34
======
</TABLE>
--------------------------------------------------------------------------------
* The rates presented are the rates in effect at October 31, 2000.
(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 $6,952.
Cost for federal income tax purposes differs from value by net unrealized
appreciation of securities as follows:
<TABLE>
<S> <C>
Unrealized appreciation $743,676
Unrealized depreciation (17,328)
--------
Net unrealized appreciation $726,348
========
</TABLE>
See notes to financial statements.
3
<PAGE> 10
--------------------------------------------------------------------------------
ASSET MANAGEMENT FUND
ADJUSTABLE RATE MORTGAGE (ARM) PORTFOLIO
STATEMENT OF NET ASSETS
OCTOBER 31, 2000
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PERCENTAGE
OF NET
ASSETS MATURITY PAR VALUE
------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
ADJUSTABLE RATE MORTGAGE-
RELATED SECURITIES*.............................. 84.5%
1 Yr. Constant Maturity Treasury Based ARMS
Chase 1990-EA1
7.58% 11/25/20 $ 2,373,238 $ 2,373,238
Fannie Mae
8.07% 7/1/25 18,097,560 18,470,822
8.12% 11/1/27 14,900,597 15,254,487
8.07% 12/1/27 16,859,009 17,238,336
8.02% 3/1/30 49,614,097 50,497,849
Freddie Mac
8.17% 10/1/24 10,505,407 10,731,930
8.14% 11/1/26 8,073,257 8,237,245
8.05% 3/1/27 15,559,159 15,889,791
8.10% 3/1/27 12,921,696 13,216,472
7.92% 9/1/27 22,355,984 22,872,966
8.05% 4/1/29 13,648,631 13,934,399
------------
188,717,535
6 Mo. Certificate of Deposit Based ARMS
Fannie Mae
8.09% 12/1/24 43,466,356 44,390,016
Freddie Mac
8.50% 1/1/26 14,993,595 15,345,007
------------
59,735,023
6 Mo. London Interbank Offering Rate (LIBOR)
Based ARMS
Donaldson, Lufkin, Jenrette Acceptance Corp.
1992-6
7.97% 7/25/22 12,836,123 12,868,213
Donaldson, Lufkin, Jenrette Acceptance Corp.
1992-9
8.13% 11/25/22 7,720,531 7,720,531
Donaldson, Lufkin, Jenrette Acceptance Corp.
1994-5
8.76% 4/25/24 2,241,180 2,245,382
Freddie Mac
8.72% 3/1/26 7,092,245 7,254,037
8.66% 5/1/26 5,526,978 5,651,335
------------
35,739,498
</TABLE>
--------------------------------------------------------------------------------
See notes to financial statements.
4
<PAGE> 11
--------------------------------------------------------------------------------
ASSET MANAGEMENT FUND
ADJUSTABLE RATE MORTGAGE (ARM) PORTFOLIO (CONTINUED)
STATEMENT OF NET ASSETS
OCTOBER 31, 2000
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PERCENTAGE
OF NET
ASSETS MATURITY PAR VALUE
------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
6 Mo. Treasury Bill Based ARMS
Citicorp 1992-18 CL A-1
8.01% 11/25/22 $18,099,485 $ 18,433,195
Housing Securities, Inc. 1992 SL-1 CL A-1
8.65% 5/25/16 11,291,267 11,460,636
------------
29,893,831
Cost of Funds Index Based ARMS
Fannie Mae
6.41% 8/25/08 5,238,537 5,133,766
6.51% 2/25/09 5,000,000 4,859,375
6.41% 6/25/12 4,000,000 3,912,500
6.51% 9/25/23 9,690,916 9,494,069
6.61% 4/1/25 5,460,995 5,389,319
6.61% 3/1/33 7,469,514 7,371,476
6.66% 5/1/36 48,463,245 47,827,165
6.71% 5/1/36 12,602,256 12,436,851
6.72% 5/1/36 44,434,114 43,850,917
Freddie Mac
6.66% 5/15/21 8,508,130 8,377,849
6.91% 8/15/23 5,566,418 5,404,644
6.41% 12/15/23 12,871,207 12,758,584
6.41% 2/15/24 1,854,699 1,826,879
------------
168,643,394
MONTHLY London Interbank Offering Rate (LIBOR)
Collateralized Mortgage Obligations
ABN Amro Mortgage Corp. 1999-8
7.02% 12/25/29 5,628,148 5,619,355
BA Mortgage Securities, Inc. 1998-4 1A7
7.12% 8/25/28 20,110,209 19,708,004
Fannie Mae
6.92% 9/25/28 13,988,221 13,957,622
Freddie Mac
7.08% 5/15/21 9,326,640 9,347,042
7.18% 3/15/25 14,781,548 14,823,121
</TABLE>
--------------------------------------------------------------------------------
See notes to financial statements.
5
<PAGE> 12
--------------------------------------------------------------------------------
ASSET MANAGEMENT FUND
ADJUSTABLE RATE MORTGAGE (ARM) PORTFOLIO (CONTINUED)
STATEMENT OF NET ASSETS
OCTOBER 31, 2000
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PERCENTAGE
OF NET
ASSETS MATURITY PAR VALUE
------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
MLCC Mortgage Investors, Inc. 1996-C
7.01% 9/15/21 $18,959,154 $ 18,994,702
Morserv, Inc. 96-2 1A1
7.47% 11/25/26 10,555,611 10,628,181
------------
93,078,027
------------
TOTAL ADJUSTABLE RATE
MORTGAGE-RELATED SECURITIES* (Cost $571,581,729) 575,807,308
AGENCY OBLIGATIONS................................. 5.4%
Federal Home Loan Bank
6.75% 5/1/02 5,000,000 5,019,531
Federal Home Loan Bank -- discount note
6.37% 11/8/00 25,000,000 24,964,610
6.43% 11/9/00 7,000,000 6,988,748
------------
31,953,358
------------
TOTAL AGENCY OBLIGATIONS (Cost $36,922,070) 36,972,889
FIXED RATE MORTGAGE-RELATED SECURITIES............. 3.9%
Collateralized Mortgage Obligations
ABN Amro Mortgage Corp. 1998-1 A3
7.00% 4/25/28 201,842 200,770
Fannie Mae
6.50% 10/18/17 10,393,272 10,334,809
Freddie Mac
6.50% 1/25/15 5,301,000 5,219,828
Prudential Home Mortgage Services 1996-4
6.50% 4/25/26 4,854,973 4,783,666
Prudential Home Mortgage Services 1996-6
6.00% 5/25/26 102,412 102,412
------------
20,641,485
Mortgage Pass Throughs
Freddie Mac
8.00% 6/1/14 1,613,928 1,628,555
9.25% 1/1/17 2,610,545 2,744,335
10.50% 12/1/20 1,533,986 1,660,061
------------
6,032,951
------------
TOTAL FIXED RATE
MORTGAGE-RELATED SECURITIES (Cost $26,486,737) 26,674,436
</TABLE>
--------------------------------------------------------------------------------
See notes to financial statements.
6
<PAGE> 13
--------------------------------------------------------------------------------
ASSET MANAGEMENT FUND
ADJUSTABLE RATE MORTGAGE (ARM) PORTFOLIO (CONTINUED)
STATEMENT OF NET ASSETS
OCTOBER 31, 2000
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PERCENTAGE
OF NET
ASSETS MATURITY PAR VALUE
------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
U.S. TREASURY OBLIGATIONS.......................... 1.2%
U.S. Treasury Notes
6.50% 5/15/05 $ 2,000,000 $ 2,053,750
6.75% 5/15/05 6,000,000 6,221,250
------------
TOTAL U.S. TREASURY OBLIGATIONS (Cost $8,197,250) 8,275,000
REPURCHASE AGREEMENTS.............................. 4.4%
Barclays Capital, 6.50% (Agreement dated
10/31/00, to be repurchased at $30,016,419 on
11/1/00; collateralized by $23,460,000 U.S.
Treasury Notes, 8.50%, due 2/15/20. The market
value of the collateral is $30,469,791) 30,011,000 30,011,000
------------
TOTAL REPURCHASE AGREEMENTS (Cost $30,011,000) 30,011,000
TOTAL INVESTMENTS IN SECURITIES
(Cost $673,198,786)(a)........................... 99.4% 677,740,633
OTHER ASSETS IN EXCESS OF LIABILITIES.............. 0.6% 3,911,409
------------
Net Assets applicable to 69,166,378 Shares of
Common Stock issued and outstanding.............. 100.0% $681,652,042
============
Net Asset Value, offering and redemption price per
share ($681,652,042 / 69,166,378) $9.86
=====
</TABLE>
--------------------------------------------------------------------------------
* The rates presented are the rates in effect at October 31, 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 $5,478,294
Unrealized depreciation (936,447)
----------
Net unrealized appreciation $4,541,847
==========
</TABLE>
See notes to financial statements.
7
<PAGE> 14
--------------------------------------------------------------------------------
ASSET MANAGEMENT FUND
INTERMEDIATE MORTGAGE SECURITIES PORTFOLIO
STATEMENT OF NET ASSETS
OCTOBER 31, 2000
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PERCENTAGE
OF NET
ASSETS MATURITY PAR VALUE
--------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
ADJUSTABLE RATE MORTGAGE-RELATED SECURITIES*..... 8.1%
Cost of Funds Index Based ARMS
Fannie Mae
6.61% 4/1/25 $3,640,662 $ 3,592,878
6.72% 4/1/29 3,778,532 3,728,939
-----------
TOTAL ADJUSTABLE RATE MORTGAGE-RELATED SECURITIES*
(Cost $7,249,007) 7,321,817
AGENCY OBLIGATIONS............................... 2.1%
Freddie Mac
5.75% 3/15/09 2,000,000 1,878,438
-----------
TOTAL AGENCY OBLIGATIONS (Cost $1,752,854) 1,878,438
FIXED RATE MORTGAGE-RELATED SECURITIES........... 73.6%
15 Yr. Securities
Fannie Mae
6.50% 5/1/08 4,441,965 4,380,888
6.50% 8/1/14 2,879,126 2,821,543
7.00% 6/1/15 2,902,413 2,886,087
Freddie Mac
7.50% 1/1/10 6,295,547 6,342,764
7.50% 7/1/11 4,035,844 4,066,113
6.50% 2/1/12 5,905,705 5,783,900
6.50% 4/1/12 4,211,341 4,124,482
6.00% 3/1/14 4,651,884 4,483,253
6.00% 7/1/14 3,781,557 3,644,476
6.50% 2/1/15 1,945,068 1,904,951
6.00% 3/1/15 2,845,706 2,742,549
Government National Mortgage Association,
6.00% 1/15/14 4,629,076 4,471,398
-----------
47,652,404
Balloons
Fannie Mae
6.00% 10/1/05 3,662,402 3,567,981
Collateralized Mortgage Obligations
ABN Amro Mortgage Corp. 1998-1 A3
7.00% 4/25/28 53,824 53,539
Freddie Mac
5.50% 11/15/16 5,000,000 4,878,125
6.50% 5/15/25 5,000,000 4,859,375
</TABLE>
--------------------------------------------------------------------------------
See notes to financial statements.
8
<PAGE> 15
--------------------------------------------------------------------------------
ASSET MANAGEMENT FUND
INTERMEDIATE MORTGAGE SECURITIES PORTFOLIO (CONTINUED)
STATEMENT OF NET ASSETS
OCTOBER 31, 2000
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PERCENTAGE
OF NET
ASSETS MATURITY PAR VALUE
--------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Norwest Asset Securities Corp. 1998-20 A6
6.25% 9/25/28 $6,000,000 $ 5,859,375
-----------
15,650,414
-----------
TOTAL FIXED RATE MORTGAGE-RELATED SECURITIES
(Cost $66,214,240) 66,870,799
U.S. TREASURY OBLIGATIONS........................ 13.5%
U.S. Treasury Notes
5.88% 11/15/04 4,000,000 4,005,000
6.75% 5/15/05 5,000,000 5,184,375
6.00% 8/15/09 2,000,000 2,020,625
5.75% 8/15/10 1,000,000 999,375
-----------
TOTAL U.S. TREASURY OBLIGATIONS (Cost $11,997,728) 12,209,375
REPURCHASE AGREEMENTS............................ 2.5%
Barclays Capital, 6.50% (Agreement dated
10/31/00, to be repurchased at $2,287,413 on
11/1/00; collateralized by $1,790,000 U.S.
Treasury Notes, 8.50%, due 2/15/20. The
market value of the collateral is
$2,324,848) 2,287,000 2,287,000
-----------
TOTAL REPURCHASE AGREEMENTS (Cost $2,287,000) 2,287,000
TOTAL INVESTMENTS IN SECURITIES
(Cost $89,500,829)(a).......................... 99.8% 90,567,429
OTHER ASSETS IN EXCESS OF LIABILITIES............ 0.2% 200,337
-----------
Net Assets applicable to 9,727,604 Shares of
Common Stock issued and outstanding............ 100.0% $90,767,766
===========
Net Asset Value, offering and redemption
price per share ($90,767,766 / 9,727,604) $9.33
===========
</TABLE>
--------------------------------------------------------------------------------
* The rates presented are the rates in effect at October 31, 2000.
(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 $21,200.
Cost for federal income tax purposes differs from value by net unrealized
appreciation of securities as follows:
<TABLE>
<S> <C>
Unrealized appreciation $1,200,149
Unrealized depreciation (154,749)
----------
Net unrealized appreciation $1,045,400
==========
</TABLE>
See notes to financial statements.
9
<PAGE> 16
--------------------------------------------------------------------------------
ASSET MANAGEMENT FUND
U.S. GOVERNMENT MORTGAGE SECURITIES PORTFOLIO
STATEMENT OF NET ASSETS
OCTOBER 31, 2000
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PERCENTAGE
OF NET
ASSETS MATURITY PAR VALUE
--------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
ADJUSTABLE RATE MORTGAGE-RELATED SECURITIES*.... 6.5%
Cost of Funds Index Based ARMS
Fannie Mae
6.72% 5/1/36 $ 4,727,033 $ 4,664,991
-----------
TOTAL ADJUSTABLE RATE MORTGAGE-RELATED
SECURITIES* (Cost $4,622,761) 4,664,991
AGENCY OBLIGATIONS.............................. 3.9%
Freddie Mac
5.75% 3/15/09 3,000,000 2,817,656
-----------
TOTAL AGENCY OBLIGATIONS (Cost $2,660,345) 2,817,656
FIXED RATE MORTGAGE-RELATED SECURITIES.......... 73.9%
15 Yr. Securities
Government National Mortgage Association
6.50% 5/15/14 5,407,366 5,322,876
30 Yr. Securities
Fannie Mae
8.00% 8/1/30 3,940,124 3,991,223
Government National Mortgage Association
10.00% 3/15/19 168,810 173,927
7.50%, 2/15/24-6/15/27 9,649,671 9,685,857
8.50% 6/15/24 762,957 782,747
Government National Mortgage Association II
6.50% 3/20/26 3,687,652 3,549,365
Government National Mortgage Association
7.00% 4/15/27 11,293,767 11,138,478
6.50% 4/15/28 2,869,770 2,772,466
6.00%, 11/15/28-1/15/29 7,524,357 7,091,706
8.00% 4/15/30 3,968,195 4,032,679
9.00%, 11/15/04-10/15/21 4,017,313 4,184,283
-----------
47,402,731
-----------
TOTAL FIXED RATE MORTGAGE-RELATED SECURITIES
(Cost $51,258,164)......................... 52,725,607
</TABLE>
--------------------------------------------------------------------------------
See notes to financial statements.
10
<PAGE> 17
--------------------------------------------------------------------------------
ASSET MANAGEMENT FUND
U.S. GOVERNMENT MORTGAGE SECURITIES PORTFOLIO (CONTINUED)
STATEMENT OF NET ASSETS
OCTOBER 31, 2000
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PERCENTAGE
OF NET
ASSETS MATURITY PAR VALUE
--------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
U.S. TREASURY OBLIGATIONS....................... 14.6%
U.S. Treasury Notes
6.75% 5/15/05 $ 6,000,000 $ 6,221,250
6.50% 2/15/10 4,000,000 4,187,500
-----------
TOTAL U.S. TREASURY OBLIGATIONS (Cost
$10,267,719)............................... 10,408,750
REPURCHASE AGREEMENTS........................... 0.9%
Barclays Capital, 6.50% (Agreement dated
10/31/00, to be repurchased at $674,122 on
11/1/00; collateralized by $530,000 U.S.
Treasury Notes, 8.50%, due 2/15/20. The
market value of the collateral is $688,363) 674,000 674,000
-----------
TOTAL REPURCHASE AGREEMENTS
(Cost $674,000)............................ 674,000
TOTAL INVESTMENTS IN SECURITIES
(Cost $69,482,989) (a)........................ 99.8% 71,291,004
OTHER ASSETS IN EXCESS OF LIABILITIES........... 0.2% 157,515
-----------
Net Assets applicable to 6,958,813 Shares of
Common Stock issued and outstanding........... 100.0% $71,448,519
===========
Net Asset Value, offering and redemption price
per share ($71,448,519 / 6,958,813) $10.27
===========
</TABLE>
--------------------------------------------------------------------------------
* The rates presented are the rates in effect at October 31, 2000.
(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 $85,335.
Cost for federal income tax purposes differs from value by net unrealized
appreciation of securities as follows:
<TABLE>
<S> <C>
Unrealized appreciation $2,014,678
Unrealized depreciation (291,998)
----------
Net unrealized appreciation $1,722,680
==========
</TABLE>
See notes to financial statements.
11
<PAGE> 18
--------------------------------------------------------------------------------
ASSET MANAGEMENT FUND
STATEMENTS OF OPERATIONS
FOR THE YEAR ENDED OCTOBER 31, 2000
--------------------------------------------------------------------------------
<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................ $3,235,941 $6,665,891 $49,743,616 $6,293,053 $5,396,041
---------- ---------- ----------- ---------- ----------
Operating expenses:
Investment advisory fee...... 80,235 265,092 3,346,260 326,549 191,452
Distribution fee Class I..... 79,070 159,057 1,859,029 139,951 114,872
Distribution fee Class D..... 4,660 -- -- -- --
Administration fee........... 16,047 31,812 223,089 27,991 22,975
Custodian fee................ 10,114 14,813 43,865 11,010 19,268
Trustees' fees............... 3,333 7,104 39,593 6,315 3,208
Transfer agent fee........... 16,739 8,871 27,467 12,436 3,225
Legal........................ 10,877 16,251 83,571 12,010 8,351
Audit........................ 4,578 10,911 68,283 10,280 3,221
Other........................ 21,094 22,807 114,276 17,891 32,601
---------- ---------- ----------- ---------- ----------
246,747 536,718 5,805,433 564,433 399,173
Fee waivers.................. (80,558) -- (2,230,833) (93,299) --
---------- ---------- ----------- ---------- ----------
Total expenses............ 166,189 536,718 3,574,600 471,134 399,173
---------- ---------- ----------- ---------- ----------
Net investment income..... 3,069,752 6,129,173 46,169,016 5,821,919 4,996,868
---------- ---------- ----------- ---------- ----------
REALIZED AND UNREALIZED GAINS
(LOSSES) FROM INVESTMENT
ACTIVITIES:
Net realized loss.............. (14,744) (1,165,577) (1,812,264) (1,912,686) (2,328,586)
Net change in unrealized
appreciation/(depreciation)
of investments............... -- 751,784 2,315,959 1,845,036 2,191,655
---------- ---------- ----------- ---------- ----------
Net gain (loss) on
investments............. (14,744) (413,793) 503,695 (67,650) (136,931)
---------- ---------- ----------- ---------- ----------
NET INCREASE IN NET ASSETS RESULTING
FROM OPERATIONS................... $3,055,008 $5,715,380 $46,672,711 $5,754,269 $4,859,937
========== ========== =========== ========== ==========
</TABLE>
--------------------------------------------------------------------------------
See notes to financial statements.
12
<PAGE> 19
--------------------------------------------------------------------------------
ASSET MANAGEMENT FUND
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEARS ENDED OCTOBER 31, 2000 AND 1999
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MONEY MARKET
PORTFOLIO
-----------------------------
2000 1999
-------------------------------------------------------------------------------------------
<S> <C> <C>
Increase (decrease) in net assets:
Operations:
Net investment income.................................. $ 3,069,752 $ 3,529,497
Net realized loss...................................... (14,744) --
------------- -------------
Net increase in net assets resulting from
operations.......................................... 3,055,008 3,529,497
------------- -------------
Dividends paid to Class I stockholders:
From net investment income............................. (3,025,788) (3,529,497)
From net realized gains................................ -- (761)
Dividends paid to Class D stockholders:(a)
From net investment income............................. (43,964) --
------------- -------------
Total dividends paid to stockholders................. (3,069,752) (3,530,258)
------------- -------------
Capital Transactions Class I:
Proceeds from sale of shares........................... 379,065,203 788,825,804
Shares issued to stockholders in reinvestment of
dividends............................................. 2,188,957 2,907,490
Cost of shares repurchased............................. (425,111,733) (758,103,140)
Capital Transactions Class D:(a)
Proceeds from sale of shares........................... 9,623,000 --
Shares issued to stockholders in reinvestment of
dividends............................................. 3,323 --
Cost of shares repurchased............................. (6,237,697) --
------------- -------------
Net increase (decrease) in net assets from capital
transactions........................................ (40,468,947) 33,630,154
------------- -------------
Total increase (decrease) in net assets.............. (40,483,691) 33,629,393
Net Assets:
Beginning of year......................................... 92,074,159 58,444,766
------------- -------------
End of year............................................... $ 51,590,468 $ 92,074,159
============= =============
</TABLE>
--------------------------------------------------------------------------------
(a) Represents the period from December 19, 1999 (commencement of operations in
Money Market Class D Shares) through October 31, 2000.
See notes to financial statements.
13
<PAGE> 20
--------------------------------------------------------------------------------
ASSET MANAGEMENT FUND
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEARS ENDED OCTOBER 31, 2000 AND 1999
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHORT U.S. GOVERNMENT
SECURITIES PORTFOLIO
----------------------------
2000 1999
------------------------------------------------------------------------------------------
<S> <C> <C>
Increase (decrease) in net assets:
Operations:
Net investment income.................................. $ 6,129,173 $ 6,461,712
Net realized loss...................................... (1,165,577) (675,404)
Net change in unrealized appreciation/(depreciation) of
investments........................................... 751,784 (2,828,997)
------------ ------------
Net increase in net assets resulting from
operations.......................................... 5,715,380 2,957,311
------------ ------------
Dividends paid to stockholders:
From net investment income............................. (6,132,836) (6,458,738)
------------ ------------
Total dividends paid to stockholders................. (6,132,836) (6,458,738)
------------ ------------
Capital transactions:
Proceeds from sale of shares........................... 740,841 29,405,048
Shares issued to stockholders in reinvestment of
dividends............................................. 3,539,406 4,441,912
Cost of shares repurchased............................. (22,604,431) (29,746,442)
------------ ------------
Net increase (decrease) in net assets from capital
transactions........................................ (18,324,184) 4,100,518
------------ ------------
Total increase (decrease) in net assets.............. (18,741,640) 599,091
Net Assets:
Beginning of year......................................... 114,839,569 114,240,478
------------ ------------
End of year............................................... $ 96,097,929 $114,839,569
============ ============
</TABLE>
--------------------------------------------------------------------------------
See notes to financial statements.
14
<PAGE> 21
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
INTERMEDIATE
ADJUSTABLE RATE MORTGAGE SECURITIES U.S. GOVERNMENT
MORTGAGE (ARM) PORTFOLIO PORTFOLIO MORTGAGE SECURITIES PORTFOLIO
--------------------------------------------------------------------------------------------
2000 1999 2000 1999 2000 1999
--------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
$ 46,169,016 $ 50,833,921 $ 5,821,919 $ 6,074,138 $ 4,996,868 $ 5,337,265
(1,812,264) (4,971,448) (1,912,686) (954,738) (2,328,586) (836,298)
2,315,959 (1,260,125) 1,845,036 (2,834,209) 2,191,655 (3,107,757)
------------- ------------- ------------ ------------ ------------ -----------
46,672,711 44,602,348 5,754,269 2,285,191 4,859,937 1,393,210
------------- ------------- ------------ ------------ ------------ -----------
(46,052,996) (50,785,092) (5,848,506) (6,074,951) (5,038,144) (5,314,467)
------------- ------------- ------------ ------------ ------------ -----------
(46,052,996) (50,785,092) (5,848,506) (6,074,951) (5,038,144) (5,314,467)
------------- ------------- ------------ ------------ ------------ -----------
79,583,347 300,038,599 30,000 31,163,180 37,920 15,324,674
22,200,993 30,577,753 2,376,935 3,464,307 2,712,203 2,848,770
(298,360,075) (342,375,271) (13,255,026) (28,566,059) (18,373,750) (7,175,510)
------------- ------------- ------------ ------------ ------------ -----------
(196,575,735) (11,758,919) (10,848,091) 6,061,428 (15,623,627) 10,997,934
------------- ------------- ------------ ------------ ------------ -----------
(195,956,020) (17,941,663) (10,942,328) 2,271,668 (15,801,834) 7,076,677
877,608,062 895,549,725 101,710,094 99,438,426 87,250,353 80,173,676
------------- ------------- ------------ ------------ ------------ -----------
$ 681,652,042 $ 877,608,062 $ 90,767,766 $101,710,094 $ 71,448,519 $87,250,353
============= ============= ============ ============ ============ ===========
</TABLE>
--------------------------------------------------------------------------------
15
<PAGE> 22
--------------------------------------------------------------------------------
ASSET MANAGEMENT FUND
MONEY MARKET PORTFOLIO CLASS I
FINANCIAL HIGHLIGHTS
(FOR A SHARE OUTSTANDING THROUGHOUT EACH YEAR)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
YEAR ENDED OCTOBER 31,
----------------------------------------------------
2000 1999 1998 1997 1996
--------------------------------------------------------------------------------------------------
<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..................... 0.0578 0.0480 0.0523 0.0513 0.0516
Net realized and unrealized loss on
investments............................ --(a) -- -- -- --
-------- -------- -------- -------- --------
Total from investment operations..... 0.0578 0.0480 0.0523 0.0513 0.0516
-------- -------- -------- -------- --------
Less distributions:
Dividends paid to stockholders:
From net investment income............. (0.0578) (0.0480) (0.0523) (0.0513) (0.0516)
From net realized gains................ -- --(a) -- -- --
-------- -------- -------- -------- --------
Net asset value, end of year................ $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
======== ======== ======== ======== ========
Total return................................ 5.93% 4.94% 5.35% 5.25% 5.29%
Ratios/Supplemental data:
Net assets, end of year (in 000's)........ $ 48,202 $ 92,074 $ 58,445 $ 48,104 $ 69,484
Ratio of expenses to average net assets... 0.30% 0.25% 0.25% 0.26% 0.24%
Ratio of net investment income to average
net assets............................. 5.74% 4.81% 5.22% 5.14% 5.15%
Ratio of expenses to average net
assets*................................ 0.45% 0.40% 0.40% 0.41% 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) Net realized/unrealized loss per share and/or distributions from net
realized gains were less than $0.005.
See notes to financial statements.
16
<PAGE> 23
--------------------------------------------------------------------------------
ASSET MANAGEMENT FUND
MONEY MARKET PORTFOLIO CLASS D
FINANCIAL HIGHLIGHTS
(FOR A SHARE OUTSTANDING THROUGHOUT EACH YEAR)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
DECEMBER 19, 1999(A) TO
OCTOBER 31, 2000
-------------------------------------------------------------------------------------
<S> <C>
Net asset value, beginning of year.......................... $ 1.00
--------
Income from investment operations:
Net investment income..................................... 0.0466
Net realized and unrealized loss on investments........... --(b)
--------
Total from investment operations....................... 0.0466
--------
Less distributions:
Dividends paid to stockholders:
From net investment income............................. (0.0466)
--------
Net asset value, end of year................................ $ 1.00
========
Total return................................................ 4.74%(d)
Ratios/Supplemental data:
Net assets, end of year (in 000's)........................ $ 3,388
Ratio of expenses to average net assets................... 0.75%(c)
Ratio of net investment income to average net assets...... 5.66%(c)
Ratio of expenses to average net assets*.................. 0.94%(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) Commencement of operations.
(b) Net realized/unrealized loss per share was less than $0.005.
(c) Annualized.
(d) Represents the total return for the period from December 19, 1999 to October
31, 2000.
See notes to financial statements.
17
<PAGE> 24
--------------------------------------------------------------------------------
ASSET MANAGEMENT FUND
SHORT U.S. GOVERNMENT SECURITIES PORTFOLIO
FINANCIAL HIGHLIGHTS
(FOR A SHARE OUTSTANDING THROUGHOUT EACH YEAR)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
YEAR ENDED OCTOBER 31,
----------------------------------------------------
2000 1999 1998 1997 1996
--------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of year.......... $ 10.36 $ 10.66 $ 10.55 $ 10.56 $ 10.68
-------- -------- -------- -------- --------
Income from investment operations:
Net investment income..................... 0.5973 0.5600 0.6144 0.6273 0.6370
Net realized and unrealized gain (loss) on
investments............................ (0.0240) (0.3000) 0.1100 (0.0100) (0.1200)
-------- -------- -------- -------- --------
Total from investment operations..... 0.5733 0.2600 0.7244 0.6173 0.5170
-------- -------- -------- -------- --------
Less distributions:
Dividends paid to stockholders from net
investment income...................... (0.5976) (0.5600) (0.6144) (0.6273) (0.6370)
-------- -------- -------- -------- --------
Net asset value, end of year................ $ 10.34 $ 10.36 $ 10.66 $ 10.55 $ 10.56
======== ======== ======== ======== ========
Total return................................ 5.77% 2.51% 7.08% 6.04% 4.99%
Ratios/Supplemental data:
Net assets, end of year (in 000's)........ $ 96,098 $114,840 $114,240 $112,304 $176,892
Ratio of expenses to average net assets... 0.51% 0.49% 0.50% 0.50% 0.48%
Ratio of net investment income to average
net assets............................. 5.79% 5.35% 5.83% 5.97% 6.02%
Portfolio turnover rate................... 138% 155% 84% 75% 69%
</TABLE>
--------------------------------------------------------------------------------
See notes to financial statements.
18
<PAGE> 25
--------------------------------------------------------------------------------
ASSET MANAGEMENT FUND
ADJUSTABLE RATE MORTGAGE (ARM) PORTFOLIO
FINANCIAL HIGHLIGHTS
(FOR A SHARE OUTSTANDING THROUGHOUT EACH YEAR)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
YEAR ENDED OCTOBER 31,
----------------------------------------------------
2000 1999 1998 1997 1996
------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of year............. $ 9.84 $ 9.91 $ 9.99 $ 9.95 $ 9.94
-------- -------- -------- -------- --------
Income from investment operations:
Net investment income........................ 0.6048 0.5290 0.5676 0.6036 0.5958
Net realized and unrealized gain (loss) on
investments............................... 0.0233 (0.0700) (0.0800) 0.0400 0.0100
-------- -------- -------- -------- --------
Total from investment operations........ 0.6281 0.4590 0.4876 0.6436 0.6058
-------- -------- -------- -------- --------
Less distributions:
Dividends paid to stockholders from net
investment income......................... (0.6129) (0.5290) (0.5676) (0.6036) (0.5958)
-------- -------- -------- -------- --------
Net asset value, end of year................... $ 9.86 $ 9.84 $ 9.91 $ 9.99 $ 9.95
======== ======== ======== ======== ========
Total return................................... 6.63% 4.73% 5.00% 6.65% 6.27%
Ratios/Supplemental data:
Net assets, end of year (in 000's)........... $681,652 $877,608 $895,550 $751,334 $796,016
Ratio of expenses to average net assets...... 0.48% 0.48% 0.49% 0.49% 0.47%
Ratio of net investment income to average net
assets.................................... 6.22% 5.34% 5.70% 6.07% 6.01%
Ratio of expenses to average net assets*..... 0.78% 0.78% 0.79% 0.79% 0.77%
Portfolio turnover rate...................... 67% 51% 53% 74% 60%
</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> 26
--------------------------------------------------------------------------------
ASSET MANAGEMENT FUND
INTERMEDIATE MORTGAGE SECURITIES PORTFOLIO
FINANCIAL HIGHLIGHTS
(FOR A SHARE OUTSTANDING THROUGHOUT EACH YEAR)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
YEAR ENDED OCTOBER 31,
----------------------------------------------------
2000 1999 1998 1997 1996
----------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of year........... $ 9.33 $ 9.66 $ 9.62 $ 9.52 $ 9.68
-------- -------- -------- -------- --------
Income from investment operations:
Net investment income...................... 0.5754 0.5490 0.5932 0.6245 0.6101
Net realized and unrealized gain (loss) on
investments............................. 0.0051 (0.3300) 0.0761 0.1000 (0.1600)
-------- -------- -------- -------- --------
Total from investment operations...... 0.5805 0.2190 0.6693 0.7245 0.4501
-------- -------- -------- -------- --------
Less distributions:
Dividends paid to stockholders:
From net investment income.............. (0.5795) (0.5490) (0.5932) (0.6245) (0.6101)
In excess of net investment income...... -- -- (0.0361) -- --
-------- -------- -------- -------- --------
Total distributions to stockholders... (0.5795) (0.5490) (0.6293) (0.6245) (0.6101)
-------- -------- -------- -------- --------
Net asset value, end of year................. $ 9.33 $ 9.33 $ 9.66 $ 9.62 $ 9.52
======== ======== ======== ======== ========
Total return................................. 6.47% 2.32% 7.18% 7.90% 4.82%
Ratios/Supplemental data:
Net assets, end of year (in 000's)......... $ 90,768 $101,710 $ 99,438 $ 77,982 $ 92,289
Ratio of expenses to average net assets.... 0.51% 0.48% 0.49% 0.49% 0.44%
Ratio of net investment income to average
net assets.............................. 6.25% 5.78% 6.17% 6.58% 6.38%
Ratio of expenses to average net assets*... 0.61% 0.58% 0.59% 0.59% 0.58%
Portfolio turnover rate.................... 110% 90% 69% 120% 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.
20
<PAGE> 27
--------------------------------------------------------------------------------
ASSET MANAGEMENT FUND
U.S. GOVERNMENT MORTGAGE SECURITIES PORTFOLIO
FINANCIAL HIGHLIGHTS
(FOR A SHARE OUTSTANDING THROUGHOUT EACH YEAR)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
YEAR ENDED OCTOBER 31,
----------------------------------------------------
2000 1999 1998 1997 1996
--------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of year.......... $ 10.26 $ 10.73 $ 10.67 $ 10.51 $ 10.68
-------- -------- -------- -------- --------
Income from investment operations:
Net investment income..................... 0.6646 0.6416 0.6947 0.7344 0.7479
Net realized and unrealized gain (loss) on
investments.............................. 0.0109 (0.4726) 0.0877 0.1600 (0.1700)
-------- -------- -------- -------- --------
Total from investment operations..... 0.6755 0.1690 0.7824 0.8944 0.5779
-------- -------- -------- -------- --------
Less distributions:
Dividends paid to stockholders:
From net investment income............... (0.6682) (0.6390) (0.6947) (0.7344) (0.7479)
In excess of net investment income....... -- -- (0.0277) -- --
-------- -------- -------- -------- --------
Total distributions to
stockholders...................... (0.6682) (0.6390) (0.7224) (0.7344) (0.7479)
-------- -------- -------- -------- --------
Net asset value, end of year................ $ 10.27 $ 10.26 $ 10.73 $ 10.67 $ 10.51
======== ======== ======== ======== ========
Total return................................ 6.90% 1.63% 7.58% 8.87% 5.63%
Ratios/Supplemental data:
Net assets, end of year (in 000's)........ $ 71,449 $ 87,250 $ 80,174 $ 53,572 $ 57,267
Ratio of expenses to average net assets... 0.52% 0.52% 0.53% 0.53% 0.52%
Ratio of net investment income to average
net assets............................... 6.53% 6.13% 6.48% 7.01% 7.10%
Portfolio turnover rate................... 127% 73% 93% 135% 165%
</TABLE>
--------------------------------------------------------------------------------
See notes to financial statements.
21
<PAGE> 28
--------------------------------------------------------------------------------
ASSET MANAGEMENT FUND
NOTES TO FINANCIAL STATEMENTS
OCTOBER 31, 2000
--------------------------------------------------------------------------------
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, 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"). 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 July 22, 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:
For purposes of determining the net asset value per share of each Portfolio,
investments for which market quotations are readily available will be valued at
the mean between the most recent bid and asked prices, which may be furnished by
a pricing service, at prices provided directly by market makers, or using matrix
pricing methods. Portfolio securities for which market quotations are not
readily available, and other assets, will be valued at fair value using methods
determined in good faith by the Board of Trustees. Short-term instruments
maturing within 60 days of the valuation date may be valued based upon their
amortized cost. The Board of Trustees will review valuation methods regularly in
order to determine their appropriateness.
REPURCHASE AGREEMENTS
Eligible portfolio investments may be purchased from primary government
securities dealers, subject to the seller's agreement to repurchase them at an
agreed upon date and price. Each Portfolio will always receive as collateral
instruments whose market value, including accrued interest, will be at least
equal to 100% of the dollar amount invested by the Portfolio in each agreement,
and each Portfolio will make payment for such instruments only upon their
physical delivery to, or evidence of their book entry transfer to the account
of, the Portfolio'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 accounting
principles generally accepted in the United States of America requires
management to make estimates and
22
<PAGE> 29
--------------------------------------------------------------------------------
ASSET MANAGEMENT FUND
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
OCTOBER 31, 2000
--------------------------------------------------------------------------------
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 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, 2000. The waiver amounted to $1,487,231.
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,
2000. The waiver amounted to $93,299.
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 Class I and Short U.S.
Government Securities Portfolio is based upon an annual percentage of the
combined average daily net assets of both portfolios and is as follows: .15% of
the first $500 million, .125% of the next $500 million, .10% of the next $1
billion, and .075% of such combined net assets in excess of $2 billion. The fee
rate for the Money Market Class D is .60% of average daily net assets. The
Distributor voluntarily waived approximately 100% of its fee for Class I and 32%
for Class D during the year ended October 31, 2000. The Money Market waiver
amounted to $79,070 for Class I and $1,488 for Class D.
23
<PAGE> 30
--------------------------------------------------------------------------------
ASSET MANAGEMENT FUND
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
OCTOBER 31, 2000
--------------------------------------------------------------------------------
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, 2000. The waiver amounted to $743,602.
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 a
percentage of the average daily net assets of each Portfolio.
--------------------------------------------------------------------------------
C. Transactions in shares of the Fund for the years ended October 31, 2000 and
October 31, 1999, were as follows:
<TABLE>
<CAPTION>
----------------------------------------------------------------------------------------------------
MONEY MARKET PORTFOLIO
------------------------------------
YEAR ENDED YEAR ENDED
OCTOBER 31, 2000 OCTOBER 31, 1999
----------------------------------------------------------------------------------------------------
<S> <C> <C>
Share transactions Class I:
Sale of shares............................................ 379,065,203 788,825,804
Shares issued to stockholders in reinvestment of
dividends.............................................. 2,188,957 2,907,490
Shares repurchased........................................ (425,111,733) (758,103,140)
------------ ------------
Net increase (decrease)................................... (43,857,573) 33,630,154
Shares outstanding
Beginning of period.................................... 92,071,765 58,441,611
------------ ------------
End of period.......................................... 48,214,192 92,071,765
============ ============
Share transactions Class D: (a)
Sale of shares............................................ 9,623,000 --
Shares issued to stockholders in reinvestment of
dividends.............................................. 3,323 --
Shares repurchased........................................ (6,237,697) --
------------ ------------
Net increase.............................................. 3,388,626 --
Shares outstanding
Beginning of period.................................... -- --
End of period.......................................... 3,388,626 --
============ ============
</TABLE>
--------------------------------------------------------------------------------
(a) For the period from December 19, 1999 (commencement of operations) through
October 31, 2000.
24
<PAGE> 31
--------------------------------------------------------------------------------
ASSET MANAGEMENT FUND
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
OCTOBER 31, 2000
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHORT U.S. GOVERNMENT ADJUSTABLE RATE MORTGAGE (ARM)
SECURITIES PORTFOLIO PORTFOLIO
--------------------------------------------------------------------------
YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED
OCTOBER 31, 2000 OCTOBER 31, 1999 OCTOBER 31, 2000 OCTOBER 31, 1999
----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Share transactions:
Sale of shares.................... 72,236 2,783,895 8,088,574 30,262,704
Shares issued to stockholders in
reinvestment of dividends...... 344,175 423,288 2,257,506 3,088,423
Shares repurchased................ (2,201,450) (2,836,326) (30,334,028) (34,590,248)
---------- ---------- ----------- -----------
Net increase (decrease)........... (1,785,039) 370,857 (19,987,948) (1,239,121)
Shares outstanding
Beginning of period............ 11,082,741 10,711,884 89,154,326 90,393,447
---------- ---------- ----------- -----------
End of period.................. 9,297,702 11,082,741 69,166,378 89,154,326
========== ========== =========== ===========
</TABLE>
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
INTERMEDIATE MORTGAGE U.S. GOVERNMENT MORTGAGE
SECURITIES PORTFOLIO SECURITIES PORTFOLIO
--------------------------------------------------------------------------
YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED
OCTOBER 31, 2000 OCTOBER 31, 1999 OCTOBER 31, 2000 OCTOBER 31, 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 of dividends...... 257,702 364,694 267,704 271,703
Shares repurchased................ (1,439,616) (2,993,651) (1,815,433) (672,809)
---------- ---------- ---------- ---------
Net increase (decrease)........... (1,178,707) 614,130 (1,543,956) 1,032,691
Shares outstanding
Beginning of period............ 10,906,311 10,292,181 8,502,769 7,470,078
---------- ---------- ---------- ---------
End of period.................. 9,727,604 10,906,311 6,958,813 8,502,769
========== ========== ========== =========
</TABLE>
--------------------------------------------------------------------------------
D. At October 31, 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............ $51,605,212 $104,256,840 $710,466,255 $106,504,448 $76,516,718
Accumulated net realized
(losses)................. (14,744) (8,892,211) (33,356,060) (16,803,282) (6,876,214)
Net unrealized
appreciation/
(depreciation) of
investments.............. -- 733,300 4,541,847 1,066,600 1,808,015
----------- ------------ ------------ ------------ -----------
$51,590,468 $ 96,097,929 $681,652,042 $ 90,767,766 $71,448,519
=========== ============ ============ ============ ===========
</TABLE>
--------------------------------------------------------------------------------
25
<PAGE> 32
--------------------------------------------------------------------------------
ASSET MANAGEMENT FUND
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
OCTOBER 31, 2000
--------------------------------------------------------------------------------
E. At October 31, 2000, each Fund had the following liabilities:
--------------------------------------------------------------------------------
<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>
Investment advisory fee
payable...................... $ 6,761 $ 20,352 $ 144,142 $ 19,240 $ 15,136
Administration fee payable..... 268 473 3,353 447 352
Distribution fee payable....... 719 12,211 86,486 11,544 9,081
Distributions payable.......... 275,359 498,831 3,853,013 487,308 398,717
</TABLE>
--------------------------------------------------------------------------------
F. For tax purposes at October 31, 2000, the Money Market Portfolio had a
capital loss carryforward of $14,744 which expires in 2008, the Short U.S.
Government Securities Portfolio had a capital loss carryforward of $8,884,570,
of which $4,615,249 expires in 2002, $466,298 expires in 2003, $1,966,811
expires in 2004, $642,561 expires in 2007, and $1,193,651 expires in 2008. The
Adjustable Rate Mortgage (ARM) Portfolio had a capital loss carryforward of
$30,458,245, of which $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, $4,959,047 expires in 2007, and $1,824,665 expires in 2008.
The Intermediate Mortgage Securities Portfolio had a capital loss carryforward
of $16,619,334, of which $9,526,290 expires in 2002, $1,932,691 expires in 2003,
$2,314,129 expires in 2004, $817,175 expires in 2007, and $2,029,049 expires in
2008. The U.S. Government Mortgage Securities Portfolio had a capital loss
carryforward of $6,862,091, of which $2,896,643 expires in 2002, $731,254
expires in 2003, $29,820 expires in 2004, $124,825 expires in 2005, $802,809
expires in 2007, and $2,276,740 expires in 2008. All losses are available to
offset future realized capital gains, if any.
G. For the year ended October 31, 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.............................. $126,492,560 $472,490,587 $ 97,570,088 $ 94,782,201
============ ============ ============ ============
Sales and Maturities................... $133,617,551 $636,236,248 $107,055,048 $108,281,112
============ ============ ============ ============
</TABLE>
--------------------------------------------------------------------------------
26
<PAGE> 33
--------------------------------------------------------------------------------
To the Stockholders and Trustees
of Asset Management Fund:
In our opinion, the accompanying statements of net assets and the related
statements of operations, of changes in net assets and the financial highlights
present fairly, in all material respects, the financial position of 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, 2000, 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
periods indicated, in conformity with accounting principles generally accepted
in the United States of America. 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 auditing standards
generally accepted in the United States of America, 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, 2000 by correspondence with the custodian, provide a reasonable basis for
our opinion.
PricewaterhouseCoopers LLP
Two Commerce Square
Philadelphia, Pennsylvania
December 18, 2000
27
<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
8500 Freeport Parkway South, Irving TX 75063
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
Two Commerce Square
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
Steven D. Pierce
Treasurer
Daniel K. Ellenwood
Secretary
Christine A. Cwik
Assistant Secretary
Alaina Metz
Assistant Secretary
