<PAGE> 1
DEAR FELLOW SHAREHOLDER:
- --------------------------------------------------------------------------------
We are pleased to report to you on the performance of the American
AAdvantage Funds and provide you with an Annual Report for the fiscal year ended
October 31, 1995. It was a very good year for the Funds as six out of seven of
the portfolios exceeded their respective benchmarks by healthy margins. Only the
Limited-Term Income Fund underperformed its benchmark as it was conservatively
managed to minimize the risk of principal volatility.
American AAdvantage Balanced Fund
The Balanced Fund posted strong gains during the twelve months ended
October 31, 1995 as interest rates declined significantly and the stock market
advanced to new highs. The Fund's total return for the one-year period was
19.77% for the AMR Class, 19.39% for the Institutional Class, 19.08% for the
Mileage Class and 19.06% for the PlanAhead Class. Each Class easily outpaced the
Lipper Balanced Index return of 17.37%.
Portfolio managers continued their discipline of purchasing stocks that are
perceived to be undervalued in the market but which offer better than average
growth expectations. Although this investment approach led to an underweighting
in technology issues such as computer and semiconductor stocks, it also resulted
in a heavy overweighting in financial stocks such as banks and insurance
companies, the second best performing sector for the period. Since the weighted
average maturities of the Fund's bond component tracked the maturity of the
Lehman Brothers Government/Corporate Index closely, bond returns were in line
with those of the index.
American AAdvantage Growth and Income Fund
The Growth and Income Fund also performed quite well over the past fiscal
year. The Fund's total return for the one year period was 21.03% for the AMR
Class, 20.69% for the Institutional Class, 20.36% for the Mileage Class and
20.14% for the PlanAhead Class. Performance surpassed the Lipper Growth & Income
Index return of 19.96%. Since the Growth and Income Fund utilized the same stock
selection approach as the Balanced Fund, its sector weightings also reflected a
heavy overweighting in the finance sector and an underweighting in technology.
American AAdvantage International Equity Fund
The International Equity Fund enjoyed outstanding results versus its peer
group for the twelve months ended October 31, 1995. The Fund's total return for
the one year period was 8.18% for the AMR Class, 7.90% for the Institutional
Class, 7.35% for the Mileage Class and 7.37% for the PlanAhead Class compared to
a 0.61% return for the Lipper International Index.
The Fund's managers select securities based upon a country's economic
outlook, market valuation and potential changes in currency exchange rates. In
addition, they use the same investment approach used by the domestic managers
when selecting stocks. As a result, the Fund significantly underweighted
Japanese securities (relative to many other managers and the Morgan Stanley
Capital International Europe, Australia and Far East ("EAFE") Index), due to the
perceived overvaluation of that market and limited growth prospects. This proved
to be a successful strategy, as the Japanese market posted the second lowest
return of all EAFE countries during the period. Instead, managers primarily
overweighted
1
<PAGE> 2
the Scandinavian, Dutch and Swiss markets which posted some of the highest of
all EAFE country returns.
American AAdvantage Limited-Term Income Fund
The cautious nature of the Limited-Term Income Fund in terms of shorter
duration and higher credit quality -- that served shareholders so well during
the devastating fixed income market of 1994 -- caused the Fund's Institutional
Class to underperform the Linked Lipper Short-Term Investment Grade Debt Funds'
Average total return by 47 basis points during the twelve month period ended
October 31, 1995. However, the Limited-Term Income Fund's total return for the
twelve months ended October 31, 1995 of 8.22% for the AMR Class, 8.18% for the
Institutional Class and 7.83% for the Mileage and PlanAhead Classes were 763,
776 and 738 basis points, respectively, higher than the same period in 1994. On
a longer-term basis, for the three and five year periods ended October 31, 1995,
the Fund continued to outperform the Linked Lipper Short-Term Investment Grade
Debt Average total return, while investing in above average credit quality
obligations with below average net asset value volatility. On October 31, 1995,
the Fund's duration was 2.4 years.
Money Market Funds
American AAdvantage Money Market Fund
For the twelve months ended October 31, 1995, the Institutional Class of
the Money Market Fund had a total return of 5.96%. Lipper Analytical Services
ranked the Institutional Class as the 11th best performing Institutional Money
Market Fund out of its universe of 132 such funds during this time period. For
the five years ended October 31, 1995, the Institutional Class maintained its
Lipper ranking as the best performing Institutional Money Market Fund in the
country.
Similarly, during the twelve months ended October 31, 1995, the Mileage and
PlanAhead Classes outperformed their benchmark, the Lipper Money Market
Instrument Funds' Average by achieving total returns of 5.61% and 5.60%,
respectively. Both the Mileage and PlanAhead Classes' performance were ranked in
the top 15th percentile by Lipper in their category during this period out of
their universe of 250 funds.
On February 1, 1995, the Federal Reserve increased the fed funds rate by 50
basis points. The Fund achieved its healthy performance during this period of
rising money market interest rates by investing in LIBOR-based variable rate
obligations and maintaining a weighted average days to maturity of less than 45
days. On February 1, 1995, the Fund's weighted average days to maturity was just
32 days. Shortly thereafter, during the second quarter of 1995, the economy
started to exhibit signs of a slowdown. As a result, a shift in portfolio
strategy was implemented, which included lengthening the Fund's weighted average
days to maturity. This reversal in portfolio strategy proved to be very timely
because on July 6, 1995, for the first time in almost three years, the Federal
Reserve lowered the fed funds rate by 25 basis points. On July 6, 1995, the
Fund's weighted average days to maturity was 71 days. On October 31, 1995, the
Fund's weighted average days to maturity was 50 days, which is 19 days longer
than October 31, 1994.
In addition, the Fund's performance benefited by investing in obligations
of issuers whose credit quality was determined to be improving and were
subsequently upgraded by a nationally recognized
2
<PAGE> 3
statistical rating organization. These issuers included: Caterpillar Financial
Services; IBM Credit Corporation; K.O.P. Bank; General Motors Acceptance
Corporation and First National Bank of Boston.
American AAdvantage Municipal Money Market Fund
The Institutional Class of the Municipal Money Market Fund achieved a total
return of 3.75% for the twelve months ended October 31, 1995. Lipper Analytical
Services ranked the Institutional Class as the 13th best performing
Institutional Tax-Exempt Money Market Fund out of its universe of 67 such funds
during this period. Likewise, the Mileage and PlanAhead Classes outperformed
their retail benchmark, the Lipper Tax-Exempt Money Market Funds' Average, with
total returns of 3.40% and 3.39%, respectively. Since its inception, the
Municipal Money Market Fund has invested exclusively in high credit worthy
municipal issuers that have been further credit enhanced either by a bank letter
of credit or bond insurance.
American AAdvantage U.S. Treasury Money Market Fund
For the twelve months ended October 31, 1995, the Institutional Class of
the U.S. Treasury Money Market Fund had a total return of 5.67% and was the 19th
best performing Institutional U.S. Treasury Money Market Fund in the Lipper
universe of 86 institutional treasury funds. During the same one year period,
the Mileage and PlanAhead Classes also performed well as both classes
outperformed their retail benchmark, the Lipper U.S. Treasury Money Funds'
Average, with total returns of 5.30% and 5.19%, respectively. Due to the Fund's
policy of investing exclusively in U.S. Treasury obligations, the Fund continued
to be rated by Standard and Poor's in its highest money market funds' rating
category, "AAAm", and meets the National Association of Insurance Commissioners
(NAIC) eligibility standards. On October 31, 1995, the Fund's weighted average
days to maturity was 21 days.
Domestic Economic Overview
Last year, our outlook focused on slower economic growth and continued
modest inflation for 1995 as the economy started to feel the full impact of
seven consecutive tightenings by the Federal Reserve. While many questioned the
Fed's ability to engineer a "soft landing", it appears as if the Fed achieved
its goal. Economic growth slowed, while inflation remained contained. Interest
rates fell dramatically and many companies reported record earnings. All these
factors were reflected in the financial markets as the stock market set record
after record, while the bond market produced double digit returns.
As we write this year's overview, Congress and the White House continue to
debate how to reduce and subsequently eliminate the federal budget deficit by
the year 2002. The ramifications for the financial markets have produced rosy
scenarios for 1996 and the rest of the century. We believe the Federal Reserve
will be more inclined to lower interest rates to keep the economy from slipping
into a recession. Lower interest rates are one of the driving forces behind
continued advances in the stock and bond markets. In conclusion, given a
meaningful budget deficit reduction package, we expect lower interest rates,
moderate economic growth and continued low inflation.
Foreign Economic Overview
Although investing overseas in 1994 allowed US investors to benefit from
the universal decline in the value of the US Dollar, 1995's decline was not as
widespread. The US Dollar declined by greater than
3
<PAGE> 4
10% versus some of the Scandinavian countries and to a lesser extent versus
Germany; however, against the UK Sterling and the Japanese Yen, the US Dollar
was actually flat for the year. Many foreign markets had to contend with
sluggish economic growth and other difficulties in 1995. In the UK, the focus
was on the political fortunes of John Major; in Japan, the banking crisis was
much worse than first reported; in Germany, the Bundesbank was very reluctant to
lower interest rates, and in France and Italy, attention focused on the
conditions associated with the European Monetary Union.
We are cautiously optimistic for foreign markets in 1996. Although
investors should not expect to benefit from continued US Dollar weakness,
falling interest rates in many foreign markets should improve economic growth
and simultaneously lower rampant unemployment. Inflation should remain contained
as unemployment is being lowered from a high base. Specifically, optimism is
improving in Japan. The Yen is weakening, interest rates are being lowered and
investors are anticipating a package of measures to stimulate the economy. In
Europe, despite the fact that most stocks are reasonably priced, with economic
growth expected to increase over the next couple of years, earnings growth
should support modestly higher stock prices.
We thank you for your continuing support and trust, and we will continue to
strive to exceed your expectations in 1996.
Sincerely,
/s/ WILLIAM F. QUINN
William F. Quinn
President
American AAdvantage Funds
4
<PAGE> 5
LOGO
[BALANCED FUND GRAPH]
<TABLE>
<CAPTION>
Jul-87 Oct-87 Oct-88 Oct-89 Oct-90 Oct-91 Oct-92 Oct-93 Oct-94 Oct-95
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Institutional Class $ 10,000 $9,076 $10,404 $ 12,015 $ 11,386 $ 14,271 $ 16,621 $ 18,500 $ 18,485 $ 22,069
Mileage Class** $ 10,000 $9,076 $10,404 $ 12,015 $ 11,386 $ 14,271 $ 16,621 $ 18,500 $ 18,470 $ 21,894
PlanAhead Class** $ 10,000 $9,076 $10,404 $ 12,015 $ 11,385 $ 14,271 $ 16,621 $ 18,500 $ 18,470 $ 21,991
AMR Class** $ 10,000 $9,076 $10,404 $ 12,015 $ 11,385 $ 14,271 $ 16,621 $ 18,500 $ 18,485 $ 22,139
S&P 500 $ 10,000 $8,082 $9,275 $ 11,719 $ 10,841 $ 14,476 $ 15,917 $ 18,290 $ 19,009 $ 24,021
SLGC $ 10,000 $10,084 $11,156 $ 12,510 $ 13,199 $ 15,227 $ 16,828 $ 19,126 $ 18,239 $ 21,186
Lipper Balanced
Index $ 10,000 $8,624 $9,758 $ 11,408 $ 10,974 $ 14,066 $ 15,299 $ 17,690 $ 17,563 $ 20,613
</TABLE>
* Fund inception was 7/17/87. Changes in value for indices have a starting date
of 7/15/87.
** Fund performance represents the total returns achieved by the Institutional
Class from the inception date of the Fund up to the inception date of the
Mileage, PlanAhead and AMR Classes and the returns of the Mileage, PlanAhead
and AMR Classes since inception of the Classes. Expenses of the Mileage and
PlanAhead Classes are higher than those of the Institutional Class.
Therefore, total returns shown are higher than they would have been had the
Mileage and PlanAhead Classes been in place since inception of the Fund.
Expenses of the AMR Class are lower than those of the Institutional Class.
Therefore, total returns shown may be lower than they would have been had the
AMR Class been in place since inception of the Fund. Inception of the
Mileage, PlanAhead and AMR Classes was 8/1/94.
5
<PAGE> 6
LOGO
[GROWTH AND INCOME FUND GRAPH]
<TABLE>
<CAPTION>
Jul-87 Oct-87 Oct-88 Oct-89 Oct-90 Oct-91 Oct-92 Oct-93 Oct-94 Oct-95
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Institutional Class $ 10,000 $8,301 $ 10,144 $ 12,269 $ 10,610 $ 14,200 $ 15,619 $ 18,976 $ 19,613 $ 23,670
Mileage Class** $ 10,000 $8,301 $ 10,144 $ 12,269 $ 10,610 $ 14,200 $ 15,619 $ 18.976 $ 19,685 $ 23,572
PlanAhead Class** $ 10,000 $8,301 $ 10,144 $ 12,269 $ 10,610 $ 14,200 $ 15,619 $ 18,976 $ 19,685 $ 23,530
AMR Class** $ 10,000 $8,301 $ 10,144 $ 12,269 $ 10,610 $ 14,200 $ 15,519 $ 18,976 $ 19,626 $ 23,764
S&P 500 $ 10,000 $8,082 $9,275 $ 11,719 $ 10,841 $ 14,476 $ 15,917 $ 18,290 $ 19,009 $ 24,021
Lipper Growth &
Income Index $ 10,000 $8,227 $9,723 $ 11,750 $ 10,392 $ 13,876 $ 15,111 $ 18,057 $ 18,627 $ 22,345
</TABLE>
* Fund inception was 7/17/87. Changes in value for indices have a starting date
of 7/15/87.
** Fund performance represents the total returns achieved by the Institutional
Class from the inception date of the Fund up to the inception date of the
Mileage, PlanAhead and AMR Classes and the returns of the Mileage, PlanAhead
and AMR Classes since inception of the Classes. Expenses of the Mileage and
PlanAhead Classes are higher than those of the Institutional Class.
Therefore, total returns shown are higher than they would have been had the
Mileage and PlanAhead Classes been in place since inception of the Fund.
Expenses of the AMR Class are lower than those of the Institutional Class.
Therefore, total returns shown may be lower than they would have been had the
AMR Class been in place since inception of the Fund. Inception of the
Mileage, PlanAhead and AMR Classes was 8/1/94.
6
<PAGE> 7
LOGO
[INTERNATIONAL EQUITY FUND GRAPH]
<TABLE>
<CAPTION>
Aug-91 Oct-91 Oct-92 Oct-93 Oct-94 Oct-95
<S> <C> <C> <C> <C> <C> <C>
Institutional Class $10,000 $10,133 $8,910 $12,168 $13,601 $14,676
Mileage Class** $10,000 $10,133 $8,910 $12,168 $13,580 $14,579
PlanAhead Class** $10,000 $10,133 $8,910 $12,168 $13,580 $14,581
AMR Class** $10,000 $10,133 $8,910 $12,168 $13,601 $14,714
EAFE Index $10,000 $10,676 $9,286 $12,804 $14,132 $14,124
Lipper International Index $10,000 $10,309 $9,790 $13,125 $14,636 $14,547
</TABLE>
* Fund inception was 8/7/91. Changes in value for indices have a starting date
of 8/7/91.
** Fund performance represents the total returns achieved by the Institutional
Class from the inception date of the Fund up to the inception date of the
Mileage, PlanAhead and AMR Classes and the returns of the Mileage, PlanAhead
and AMR Classes since inception of the Classes. Expenses of the Mileage and
PlanAhead Classes are higher than those of the Institutional Class.
Therefore, total returns shown are higher than they would have been had the
Mileage and PlanAhead Classes been in place since inception of the Fund.
Expenses of the AMR Class are lower than those of the Institutional Class.
Therefore, total returns shown may be lower than they would have been had the
AMR Class been in place since inception of the Fund. Inception of the
Mileage, PlanAhead and AMR Classes was 8/1/94.
7
<PAGE> 8
LOGO
[LIMITED-TERM INCOME FUND GRAPH]
<TABLE>
<CAPTION>
Nov-87 Oct-88 Oct-89 Oct-90 Oct-91 Oct-92 Oct-93 Oct-94 Oct-95
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Institutional Class $ 10,000 $ 10,670 $ 11,482 $ 12,345 $ 13,810 $ 14,906 $ 15,979 $ 16,047 $ 17,359
Mileage Class** $ 10,000 $ 10,670 $ 11,482 $ 12,345 $ 13,810 $ 14,906 $ 15,979 $ 16,051 $ 17,308
PlanAhead Class** $ 10,000 $ 10,670 $ 11,482 $ 12,345 $ 13,810 $ 14,906 $ 15,979 $ 16,051 $ 17,308
AMR Class** $ 10,000 $ 10,670 $ 11,482 $ 12,345 $ 13,810 $ 14,906 $ 15,979 $ 16,073 $ 17,396
Lipper Short Term Investment
Grd DF Avg. $ 10,000 $ 10,720 $ 11,730 $ 12,520 $ 13,959 $ 15,118 $ 16,204 $ 16,154 $ 17,610
Shearson Lehman G/C 1-5 Year
Index $ 10,000 $ 10,675 $ 11,723 $ 12,715 $ 14,310 $ 16,622 $ 16,833 $ 16,795 $ 18,545
</TABLE>
* Fund inception was 12/3/87. Changes in value for indices have a starting date
of 12/3/87.
** Fund performance represents the total returns achieved by the Institutional
Class from the inception date of the Fund up to the inception date of the
Mileage, PlanAhead and AMR Classes and the returns of the Mileage, PlanAhead
and AMR Classes since inception of the Classes. Expenses of the Mileage and
PlanAhead Classes are higher than those of the Institutional Class.
Therefore, total returns shown are higher than they would have been had the
Mileage and PlanAhead Classes been in place since inception of the Fund.
Expenses of the AMR Class are lower than those of the Institutional Class.
Therefore, total returns shown may be lower than they would have been had the
AMR Class been in place since inception of the Fund. Inception of the
Mileage, PlanAhead and AMR Classes was 8/1/94.
8
<PAGE> 9
RESULTS OF SHAREHOLDER MEETING:
A special meeting of shareholders of the American AAdvantage Funds was held
on August 3, 1995. The following matters were voted on at the meeting.
(1) The shareholders of the American AAdvantage Funds, on behalf of each
Fund approved the following fundamental investment policy:
Notwithstanding any other limitation, the Fund may invest all of its
investable assets in an open-end management investment company with
substantially the same investment objectives, policies and limitations as
the Fund. For this purpose, "all of the Fund's investable assets" means
that the only investment securities that will be held by the Fund will be
the Fund's interest in the investment company.
<TABLE>
<CAPTION>
VOTED: FOR AGAINST ABSTAIN NON-VOTING
- --------------------------------------------- ----------------- ------------- ------------- ----------------
<S> <C> <C> <C> <C>
American AAdvantage Funds:
Balanced Fund.............................. 55,210,182.721 29,484.897 0.000 1,825,194.323
Growth and Income Fund..................... 44,764,740.335 9,578.477 0.000 1,384,584.376
International Equity Fund.................. 18,147,056.341 1,707.643 0.000 244,525.320
Limited-Term Income Fund................... 12,275,104.756 28,043.570 0.000 3,156,423.915
Money Market Fund.......................... 1,038,118,971.310 10,140,313.00 1,005,505.610 511,343,317.900
Municipal Money Market Fund................ 10,773,119.720 0.000 37,810.150 7,466,885.130
U.S. Treasury Money Market Fund............ 34,702,633.060 198,616.81 23,454.760 20,063,924.830
</TABLE>
(2) The shareholders of the American AAdvantage Funds, on behalf of each
Fund approved an amended Management Agreement between the Trust and AMR
Investment Services, Inc.
<TABLE>
<CAPTION>
VOTED: FOR AGAINST ABSTAIN NON-VOTING
- --------------------------------------------- ----------------- ------------- ------------- ----------------
<S> <C> <C> <C> <C>
American AAdvantage Funds:
Balanced Fund.............................. 55,238,809.985 0.000 857.633 1,825,194.323
Growth and Income Fund..................... 44,771,354.618 1,215.234 1,748.960 170,565.610
International Equity Fund.................. 18,147,052.740 1,711.274 0.000 244,525.290
Limited-Term Income Fund................... 12,301,072.557 0.000 2,075.766 3,156,423.918
Money Market Fund.......................... 1,047,303,548.450 736,056.81 1,225,184.66 511,643,317.900
Municipal Money Market Fund................ 10,741,870.320 31,249.40 37,810.51 7,466,884.770
U.S. Treasury Money Market Fund............ 34,698,214.870 187,874.55 38,615.21 20,063,924.830
</TABLE>
(3) The shareholders of the Trust elected the following nominees to the
Board of Trustees: William F. Quinn, David G. Fox, John S. Justin, Stephen D.
O'Sullivan and Roger T. Staubach.
<TABLE>
<CAPTION>
WITHHOLD
VOTED: FOR AUTHORITY NON-VOTING
- ------------------------------------------------------------ ----------------- -------------- ----------------
<S> <C> <C> <C>
American AAdvantage Funds Nominees:
William F. Quinn.......................................... 1,211,941,618.108 13,524,705.079 545,484,855.767
David G. Fox.............................................. 1,211,941,618.108 13,524,705.079 545,484,855.767
John S. Justin............................................ 1,211,941,618.108 13,524,705.079 545,484,855.767
Stephen D. O'Sullivan..................................... 1,211,941,618.108 13,524,705.079 545,484,855.767
Roger T. Staubach......................................... 1,211,941,618.108 13,524,705.079 545,484,855.767
</TABLE>
(4) The shareholders of the International Equity Fund approved an amended
investment advisory agreement with Hotchkis and Wiley.
<TABLE>
<CAPTION>
VOTED: FOR AGAINST ABSTAIN NON-VOTING
- ------------------------------------------------------------- -------------- ----------- ------- ------------
<S> <C> <C> <C> <C>
American AAdvantage International Equity Fund................ 18,131,233.682 17,530.332 0.000 244,525.290
</TABLE>
9
<PAGE> 10
REPORT OF ERNST & YOUNG LLP, INDEPENDENT AUDITORS
Shareholders and Board of Trustees
American AAdvantage Balanced Fund
American AAdvantage Growth and Income Fund
American AAdvantage International Equity Fund
American AAdvantage Limited-Term Income Fund
American AAdvantage Money Market Fund
American AAdvantage Municipal Money Market Fund
American AAdvantage U.S. Treasury Money Market Fund
We have audited the accompanying statements of assets and liabilities of the
American AAdvantage Balanced Fund, the American AAdvantage Growth and Income
Fund, the American AAdvantage International Equity Fund, the American AAdvantage
Limited-Term Income Fund, the American AAdvantage Money Market Fund, the
American AAdvantage Municipal Money Market Fund, and the American AAdvantage
U.S. Treasury Money Market Fund (collectively, the "Funds") (seven separate
portfolios comprising the American AAdvantage Funds), including the schedules of
investments as of October 31, 1995, and the related statements of operations for
the year then ended, the statements of changes in net assets for each of the two
years in the period then ended and the financial highlights for each of the
periods indicated therein. These financial statements and financial highlights
are the responsibility of the Funds' management. Our responsibility is to
express an opinion on these financial statements and financial highlights based
on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements and financial
highlights are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements. Our procedures included confirmation of securities owned as of
October 31, 1995 by correspondence with the custodians and brokers. An audit
also includes assessing the accounting principles used and significant estimates
made by management, as well as evaluating the overall financial statement
presentation. We believe that our audits provide a reasonable basis for our
opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of each
of the respective American AAdvantage Funds at October 31, 1995, the results of
their operations for the year then ended, the changes in their net assets for
each of the two years in the period then ended, and the financial highlights for
each of the periods indicated therein, in conformity with generally accepted
accounting principles.
/s/ ERNST & YOUNG LLP
Dallas, Texas
December 19, 1995
10
<PAGE> 11
AMERICAN AADVANTAGE BALANCED FUND
SCHEDULE OF INVESTMENTS
October 31, 1995
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Par
Amount Value
-------- --------
(dollars in thousands)
<S> <C> <C>
U.S. GOVERNMENT & AGENCY
OBLIGATIONS - 23.38%
U.S. Treasury Notes, 4.75%,
Due 2-15-1997................. $ 3,000 $ 2,967
U.S. Treasury Notes, 5.625%,
Due 6-30-1997................. 3,300 3,301
U.S. Treasury Notes, 7.375%,
Due 11-15-1997................ 2,010 2,075
U.S. Treasury Notes, 6.00%,
Due 12-31-1997................ 1,300 1,310
U.S. Treasury Notes, 6.125%,
Due 5-15-1998................. 6,690 6,759
U.S. Treasury Notes, 9.00%,
Due 5-15-1998................. 1,000 1,078
U.S. Treasury Notes, 5.125%,
Due 6-30-1998................. 1,000 986
U.S. Treasury Notes, 9.25%,
Due 8-15-1998................. 2,000 2,180
U.S. Treasury Notes, 8.875%,
Due 2-15-1999................. 2,000 2,185
U.S. Treasury Notes, 7.00%,
Due 4-15-1999................. 1,800 1,870
U.S. Treasury Notes, 6.75%,
Due 6-30-1999................. 5,000 5,161
U.S. Treasury Notes, 6.375%,
Due 7-15-1999................. 1,500 1,530
U.S. Treasury Notes, 7.125%,
Due 9-30-1999................. 7,190 7,525
U.S. Treasury Notes, 7.875%,
Due 11-15-1999................ 1,500 1,611
U.S. Treasury Notes, 7.75%,
Due 1-31-2000................. 2,000 2,144
U.S. Treasury Notes, 5.50%,
Due 4-15-2000................. 1,500 1,485
U.S. Treasury Notes, 5.875%,
Due 6-30-2000................. 2,090 2,095
U.S. Treasury Notes, 6.125%,
Due 7-31-2000................. 5,090 5,152
U.S. Treasury Notes, 8.50%,
Due 11-15-2000................ 3,500 3,905
U.S. Treasury Notes, 8.00%,
Due 5-15-2001................. 2,100 2,312
U.S. Treasury Notes, 7.50%,
Due 11-15-2001................ 5,750 6,221
U.S. Treasury Notes, 7.50%,
Due 5-15-2002................. 3,000 3,259
U.S. Treasury Notes, 6.375%,
Due 8-15-2002................. 4,995 5,120
U.S. Treasury Notes, 6.25%,
Due 2-15-2003................. 1,500 1,526
<CAPTION>
Par
Amount Value
-------- --------
(dollars in thousands)
<S> <C> <C>
U.S. Treasury Notes, 5.75%,
Due 8-15-2003................. $ 2,000 $ 1,971
U.S. Treasury Notes, 7.25%,
Due 5-15-2004................. 1,500 1,623
U.S. Treasury Notes, 7.875%,
Due 11-15-2004................ 1,500 1,691
U.S. Treasury Notes, 6.50%,
Due 8-15-2005................. 2,000 2,071
U.S. Treasury Bonds, 7.25%,
Due 8-15-2004................. 2,500 2,707
U.S. Treasury Bonds, 11.625%,
Due 11-15-2004................ 10,620 14,685
U.S. Treasury Bonds, 7.50%,
Due 2-15-2005................. 6,635 7,319
U.S. Treasury Bonds, 13.875%,
Due 5-15-2011................. 1,230 1,955
U.S. Treasury Bonds, 10.375%,
Due 11-15-2012................ 1,500 2,015
U.S. Treasury Bonds, 8.75%,
Due 5-15-2017................. 3,180 4,038
U.S. Treasury Bonds, 8.875%,
Due 8-15-2017................. 1,750 2,250
U.S. Treasury Bonds, 8.875%,
Due 2-15-2019................. 1,250 1,616
U.S. Treasury Bonds, 8.125%,
Due 8-15-2019................. 6,450 7,762
U.S. Treasury Bonds, 8.125%,
Due 8-15-2021................. 2,585 3,133
U.S. Treasury Bonds, 7.50%,
Due 11-15-2024................ 4,150 4,749
U.S. Treasury Coupon Strips,
Due 11-15-2008................ 796 351
U.S. Treasury Coupon Strips,
Due 5-15-2011................. 4,000 1,481
U.S. Treasury Coupon Strips,
Due 8-15-2018................. 4,000 897
U.S. Treasury Coupon Strips,
Due 8-15-2019................. 11,500 2,409
U.S. Treasury Coupon Strips,
Due 11-15-2019................ 6,000 1,236
U.S. Treasury Principal Strips,
Due 2-15-2019................. 5,300 1,155
Federal Home Loan Mortgage
Corporation, 7.71%,
Due 6-21-2004................. 1,999 2,096
Federal Home Loan Mortgage
Corporation, 6.50%,
Due 10-15-2006................ 1,499 1,490
</TABLE>
See accompanying notes
11
<PAGE> 12
AMERICAN AADVANTAGE BALANCED FUND
SCHEDULE OF INVESTMENTS
October 31, 1995
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Par
Amount Value
-------- --------
(dollars in thousands)
<S> <C> <C>
Federal Home Loan Mortgage
Corporation, 7.00%,
Due 4-15-2019................. $ 999 $ 1,006
Federal National Mortgage
Association, 6.36%,
Due 8-16-2000................. 2,089 2,118
Federal National Mortgage
Association, 6.00%,
Due 1-1-2009.................. 1,135 1,107
Federal National Mortgage
Association, 6.00%,
Due 2-1-2009.................. 1,952 1,903
Federal National Mortgage
Association, 6.50%,
Due 5-15-2014................. 400 400
Federal National Mortgage
Association, ARM, 6.43%,
Due 7-1-2018.................. 1,769 1,776
Federal National Mortgage
Association, 6.75%,
Due 10-25-2018................ 500 501
Federal National Mortgage
Association, 10.45%,
Due 4-25-2019................. 290 315
Federal National Mortgage
Association, 8.00%,
Due 10-1-2023................. 4,965 5,094
Federal National Mortgage
Association, ARM, 5.50%,
Due 12-1-2023................. 1,546 1,558
Federal National Mortgage
Association, ARM, 6.37%,
Due 1-1-2024.................. 1,768 1,780
Federal National Mortgage
Association, 8.00%,
Due 10-1-2024................. 3,229 3,313
Federal National Mortgage
Association, 8.00%,
Due 3-1-2025.................. 1,789 1,835
Federal National Mortgage
Association, ARM, 7.29%,
Due 4-1-2025.................. 468 482
Federal National Mortgage
Association, 8.50%,
Due 6-1-2025.................. 988 1,025
Government National Mortgage
Association, 10.50%,
Due 9-15-1998................. 17 19
Government National Mortgage
Association, 9.00%,
Due 10-15-2016................ 1,101 1,157
<CAPTION>
Par
Amount Value
-------- --------
(dollars in thousands)
<S> <C> <C>
Government National Mortgage
Association, 9.00%,
Due 12-15-2017................ $ 901 $ 951
Government National Mortgage
Association, 9.00%,
Due 2-15-2020................. 935 983
Government National Mortgage
Association, 8.50%,
Due 3-15-2020................. 351 366
Government National Mortgage
Association, 9.00%,
Due 2-15-2021................. 399 420
Government National Mortgage
Association, 8.50%,
Due 2-15-2022................. 752 783
Government National Mortgage
Association, 8.00%,
Due 3-1-2022.................. 949 978
Government National Mortgage
Association, 9.00%,
Due 7-15-2022................. 464 488
Government National Mortgage
Association, 8.50%,
Due 1-15-2023................. 264 275
Government National Mortgage
Association, 8.00%,
Due 2-1-2023.................. 2,909 2,996
Government National Mortgage
Association, 8.00%,
Due 3-15-2023................. 701 722
Government National Mortgage
Association, 7.50%,
Due 4-15-2023................. 872 884
Government National Mortgage
Association, 8.00%,
Due 5-15-2023................. 2,478 2,552
Government National Mortgage
Association, 8.50%,
Due 6-15-2024................. 949 989
Government National Mortgage
Association, 8.50%,
Due 12-15-2024................ 1,528 1,592
Government National Mortgage
Association, 8.50%,
Due 6-15-2025................. 997 1,039
Government National Mortgage
Association, 8.50%,
Due 7-1-2025.................. 940 979
--------
TOTAL U.S. GOVERNMENT &
AGENCY OBLIGATIONS........ 186,843
--------
</TABLE>
See accompanying notes
12
<PAGE> 13
AMERICAN AADVANTAGE BALANCED FUND
SCHEDULE OF INVESTMENTS
October 31, 1995
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Par
Amount Value
-------- --------
(dollars in thousands)
<S> <C> <C>
ASSET-BACKED SECURITIES - 1.83%
American Express Master Trust,
1992-1 A, 6.05%,
Due 6-15-1998................. $ 2,250 $ 2,256
Banc One Auto Trust,
1995-A A5, 7.05%,
Due 8-15-1998................. 390 398
Carco Auto Loan Master Trust,
1994-2 A, 7.875%,
Due 7-15-1999................. 600 618
First Chicago Master Trust II,
1992-E A, 6.25%,
Due 8-15-1999................. 750 754
Ford Credit Grantor Trust,
1994-A A, 6.35%,
Due 5-15-1999................. 502 505
General Electric Railcar Trust,
1992-1 A, 7.75%,
Due 6-1-2004.................. 644 685
Olympic Automobile Receivables
Trust, 1993-C A, 4.50%,
Due 2-15-2000................. 351 345
Premier Auto Trust,
1994-4 A5, 6.65%,
Due 11-2-1998................. 2,000 2,021
Prime Credit Card Master Trust,
1992-1 A1, 7.05%,
Due 2-15-2001................. 1,010 1,034
Signet Credit Card Master Trust,
1994-4 A, 6.80%,
Due 12-15-2000................ 1,800 1,830
Standard Credit Card Trust,
1991-6 A, 7.875%,
Due 1-7-2000.................. 1,500 1,570
UCFC Home Equity,
1994-C1 A2, 7.275%,
Due 6-10-2007................. 612 620
Western Financial Grantor Trust,
1993-2 A2, 4.70%,
Due 10-1-1998................. 1,183 1,168
Western Financial Grantor Trust,
1994-3 A2, 6.65%,
Due 12-1-1999................. 837 845
--------
TOTAL ASSET-BACKED
SECURITIES................ 14,649
--------
NON-AGENCY MORTGAGE-BACKED OBLIGATIONS - 0.96%
Citicorp Mortgage Securities,
Incorporated, 9.50%,
Due 8-1-2002.................. 776 794
<CAPTION>
Par
Amount Value
-------- --------
(dollars in thousands)
<S> <C> <C>
Citicorp Mortgage Securities,
Incorporated, 9.50%,
Due 8-25-2005................. $ 68 $ 68
Citicorp Mortgage Securities,
Incorporated, 8.50%,
Due 4-25-2017................. 811 818
Citicorp Mortgage Securities,
Incorporated, 10.00%,
Due 5-25-2017................. 171 170
Citicorp Mortgage Securities,
Incorporated, 9.00%,
Due 4-1-2018.................. 871 900
DLJ Mortgage Acceptance
Corporation, FRN, 4.56%,
Due 3-25-2024................. 760 733
General Electric Capital
Mortgage Services,
Incorporated,
1992-4 A A4, 8.00%,
Due 4-25-2022................. 777 792
Green Tree Financial
Corporation, 1993-3 A5, 5.75%,
Due 10-15-2018................ 990 963
Green Tree Financial
Corporation, 1994-5 A2, 7.30%,
Due 11-15-2019................ 690 709
Green Tree Financial
Corporation, 1995-8 A4, 6.60%,
Due 12-15-2026................ 1,400 1,393
Residential Funding Corporation,
1993 S28 A4, 6.35%,
Due 8-25-2023................. 300 295
--------
TOTAL NON-AGENCY
MORTGAGE-BACKED
OBLIGATIONS............... 7,635
--------
CORPORATE BONDS - 9.59%
FINANCIAL - 3.81%
American General Financial,
7.25%, Due 5-15-2005.......... 410 427
Associates Corporation of North
America, 6.375%,
Due 8-15-1998................. 2,000 2,016
Associates Corporation of North
America, 7.50%,
Due 5-15-1999................. 80 83
BankAmerica Corporation, 7.50%,
Due 3-15-1997................. 960 979
Banponce, 7.30%,
Due 6-5-2002.................. 640 659
Capital One Bank Note, 8.125%,
Due 3-1-2000.................. 1,000 1,061
</TABLE>
See accompanying notes
13
<PAGE> 14
AMERICAN AADVANTAGE BALANCED FUND
SCHEDULE OF INVESTMENTS
October 31, 1995
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Par
Amount Value
-------- --------
(dollars in thousands)
<S> <C> <C>
Chemical Banking Corporation,
7.625%, Due 1-15-2003......... $ 200 $ 212
Chemical Banking Corporation,
FRN, 7.30%, Due 6-15-2000..... 2,300 2,307
Chrysler Financial Corporation,
MTN, 7.89%, Due 2-10-1997..... 1,750 1,786
Chrysler Financial Corporation,
MTN, 6.50%, Due 8-3-1998...... 550 553
Fleet Mortgage Group,
Incorporated, 6.125%,
Due 8-15-1997................. 930 931
Ford Motor Credit Company,
9.25%, Due 6-15-1998.......... 1,000 1,076
Ford Motor Credit Company,
8.20%, Due 2-15-2002.......... 1,470 1,599
Ford Motor Credit Company,
8.00%, Due 6-15-2002.......... 500 540
General Motors Acceptance
Corporation, 7.375%,
Due 4-25-2000................. 2,000 2,075
General Motors Acceptance
Corporation, 6.75%,
Due 6-17-2002................. 1,140 1,149
General Motors Acceptance
Corporation, 6.625%,
Due 10-1-2002................. 1,000 1,001
Health & Rehab, FRN, 6.9875%,
Due 7-13-1999................. 1,000 995
Lehman Brothers, Incorporated,
7.00%, Due 5-15-1997.......... 1,000 1,010
Lehman Brothers, Incorporated,
5.04%, Due 12-15-2003......... 1,000 1,007
Merrill Lynch & Company,
Incorporated, 8.25%,
Due 11-15-1999................ 500 534
Morgan Stanley, 7.50%,
Due 2-1-2024.................. 600 577
NationsBank Corporation, 6.75%,
Due 8-15-2000................. 1,030 1,046
NationsBank Corporation, 7.625%,
Due 4-15-2005................. 1,000 1,062
Salomon Brothers, Incorporated,
7.05%, Due 1-15-1998.......... 800 802
Salomon Brothers, Incorporated,
7.00%, Due 1-20-1998.......... 390 392
Salomon Brothers, Incorporated,
MTN, 5.53%, Due 1-30-1998..... 1,500 1,457
Salomon Brothers, Incorporated,
6.04%, Due 7-9-1998........... 625 611
Smith Barney Holdings, 6.00%,
Due 3-15-1997................. 1,000 1,000
<CAPTION>
Par
Amount Value
-------- --------
(dollars in thousands)
<S> <C> <C>
St. Paul Companies, 9.375%,
Due 6-15-1997................. $ 600 $ 631
Westpac Banking Corporation,
7.875%, Due 10-15-2002........ 800 855
--------
TOTAL FINANCIAL............. 30,433
--------
INDUSTRIAL - 2.57%
Atlantic Richfield Corporation,
8.75%, Due 3-1-2032........... 400 481
The Boeing Company, 8.625%,
Due 11-15-2031................ 420 498
E.I. Du Pont De Nemours &
Company, 8.45%,
Due 10-15-1996................ 200 205
Heinz (H. J.) Company, 5.50%,
Due 9-15-1997................. 520 517
International Business Machines,
Incorporated, 6.375%,
Due 11-1-1997................. 750 757
Legrand, 8.50%,
Due 2-15-2025................. 610 699
Loews Corporation, 7.00%,
Due 10-20-2023................ 550 515
The May Department Store
Company, 10.625%,
Due 11-1-2010................. 530 722
The May Department Store
Company, 9.75%,
Due 2-15-2021................. 400 513
McDermott, 8.75%,
Due 5-19-2023................. 1,000 1,022
News America Holdings, 9.25%,
Due 2-1-2013.................. 370 414
Occidential Petroleum
Corporation, 8.50%, Due
9-15-2004..................... 2,000 2,138
Pepsico Incorporated, 7.00%,
Due 11-15-1996................ 550 557
Philip Morris Companies,
Incorporated, 8.875%,
Due 7-1-1996.................. 520 529
Philip Morris Companies,
Incorporated, 9.25%,
Due 12-1-1997................. 3,500 3,719
Philip Morris Companies,
Incorporated, 8.25%,
Due 10-15-2003................ 640 698
Philip Morris Companies,
Incorporated, 8.375%,
Due 1-15-2017................. 625 640
RJR Nabisco, 8.75%,
Due 8-15-2005................. 2,750 2,750
</TABLE>
See accompanying notes
14
<PAGE> 15
AMERICAN AADVANTAGE BALANCED FUND
SCHEDULE OF INVESTMENTS
October 31, 1995
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Par
Amount Value
-------- --------
(dollars in thousands)
<S> <C> <C>
Sears Roebuck, 9.375%,
Due 11-1-2011................. $ 635 $ 777
Telecommunications,
Incorporated, 9.80%, Due
2-1-2012...................... 320 371
Torchmark Corporation, 7.875%,
Due 5-15-2023................. 510 527
Valasis Communications, 9.55%,
Due 12-1-2003................. 390 408
Xerox Corporation, 7.15%,
Due 8-1-2004.................. 1,000 1,035
--------
TOTAL INDUSTRIAL............ 20,492
--------
UTILITY - 1.23%
Baltimore Gas & Electric, FRN,
6.375%, Due 4-15-1999......... 2,500 2,502
General Telephone Southwest,
Incorporated, 8.50%,
Due 11-15-2031................ 600 695
National Rural, FRN, 6.0675%,
Due 2-27-1998................. 1,500 1,497
Pacific Bell Telephone, 8.70%,
Due 6-15-2001................. 630 701
Southern California Edison
Company, 5.90%,
Due 1-15-1997................. 2,500 2,493
Southern California Edison
Company, 5.60%,
Due 12-15-1998................ 2,000 1,961
--------
TOTAL UTILITY............... 9,849
--------
FOREIGN BONDS - 1.98%
ABN-AMRO, 7.27%,
Due 5-31-2005................. 690 716
ANZ Banking, 6.25%,
Due 2-1-2004.................. 590 572
Hydro-Quebec, 9.40%,
Due 2-1-2021.................. 1,800 2,187
Hydro-Quebec, 8.875%,
Due 3-1-2026.................. 1,200 1,391
Korea Development Bank, 5.875%,
Due 12-1-1998................. 100 99
Korea Development Bank, 6.25%,
Due 5-1-2000.................. 640 637
Province of Newfoundland,
9.875%, Due 6-1-2020.......... 250 317
Province of Quebec, 8.80%,
Due 4-15-2003................. 620 694
Republic of Italy, 6.875%,
Due 9-27-2023................. 1,500 1,382
<CAPTION>
Par
Amount Value
-------- --------
(dollars in thousands)
<S> <C> <C>
Skandinaviska Enskilda Banken,
6.875%, Due 2-15-2009......... $ 1,000 $ 982
Svenska Handelsbanken, 8.35%,
Due 7-15-2004................. 580 634
Swedish Bank FRN, 7.71875%,
Due 10-29-2049................ 2,500 2,550
Swedish Export Credit, 9.875%,
Due 3-15-1998................. 2,410 2,665
Swiss Bank Corporation, 7.50%,
Due 7-15-2025................. 950 989
--------
TOTAL FOREIGN BONDS......... 15,815
--------
TOTAL CORPORATE BONDS....... 76,589
--------
Shares
--------
PREFERRED STOCK - 0.44%
ConAgra Convertible E........... 55,000 2,159
National Semiconductor
Convertible A................. 13,000 1,138
RJR Nabisco, Convertible PERC... 29,300 183
Teledyne, Incorporated E........ 360 5
--------
TOTAL PREFERRED STOCK....... 3,485
--------
COMMON STOCK - 60.00%
FOREIGN STOCKS - 1.80%
Arthur Guinness & Sons, ADR..... 24,700 988
Exel Limited.................... 50,000 2,675
Hanson PLC, ADR................. 56,100 870
Moore Corporation Limited....... 120,000 2,295
Royal Dutch Petroleum Company,
New York Registry............. 30,000 3,686
Schlumberger Limited............ 30,000 1,868
The Seagram Company Limited..... 20,800 749
Volvo AB, ADR................... 55,000 1,244
--------
TOTAL FOREIGN STOCKS........ 14,375
--------
CONSUMER STAPLES -- 12.63%
DEPARTMENT AND MAIL ORDER - 1.70%
K Mart Corporation.............. 253,600 2,061
The May Department Store
Company....................... 91,800 3,603
J.C. Penney Company,
Incorporated.................. 130,475 5,496
Sears Roebuck & Company......... 40,000 1,360
</TABLE>
See accompanying notes
15
<PAGE> 16
AMERICAN AADVANTAGE BALANCED FUND
SCHEDULE OF INVESTMENTS
October 31, 1995
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Shares Value
-------- --------
(dollars in thousands)
<S> <C> <C>
Woolworth Corporation........... 70,000 $ 1,024
--------
TOTAL DEPARTMENT AND MAIL
ORDER..................... 13,544
--------
DISTILLERS AND BREWERS - 0.76%
Anheuser-Busch Companies,
Incorporated.................. 76,300 5,036
Brown-Foreman, Incorporated..... 26,700 1,018
--------
TOTAL DISTILLERS AND
BREWERS................... 6,054
--------
DRUGS AND HOSPITAL SUPPLY - 4.13%
Allergan, Incorporated.......... 62,400 1,833
American Home Products
Corporation................... 60,800 5,388
Baxter International,
Incorporated.................. 175,300 6,771
Bristol-Myers Squibb Company.... 50,500 3,851
Eli Lilly & Company............. 37,915 3,664
Guidant Corporation............. 25,196 806
Merck & Company, Incorporated... 105,000 6,038
Upjohn Company.................. 46,500 2,360
Warner Lambert.................. 27,100 2,307
--------
TOTAL DRUGS AND HOSPITAL
SUPPLY.................... 33,018
--------
FOOD PROCESSING - 0.11%
Nabisco Holdings Corporation,
Class A....................... 32,900 884
--------
LEISURE - 0.36%
Brunswick Corporation........... 71,600 1,396
Hasbro, Incorporated............ 30,800 939
King World Productions,
Incorporated (non-income
producing).................... 16,500 575
--------
TOTAL LEISURE............... 2,910
--------
PHOTOGRAPHY - 1.05%
Eastman Kodak Company........... 133,900 8,385
--------
PUBLISHING - 0.67%
A.H. Belo, Incorporated, Class
A............................. 24,400 845
R.R. Donnelley & Sons Company... 30,000 1,095
Dun & Bradstreet Corporation.... 45,000 2,689
New York Times Company.......... 24,700 685
--------
TOTAL PUBLISHING............ 5,314
--------
RETAIL - OTHER - 0.34%
Giant Foods, Incorporated....... 40,000 1,285
Melville Corporation............ 45,000 1,440
--------
TOTAL RETAIL - OTHER........ 2,725
--------
TOBACCO - 3.51%
American Brands, Incorporated... 60,000 2,573
<CAPTION>
Shares Value
-------- --------
(dollars in thousands)
<S> <C> <C>
Philip Morris Companies,
Incorporated.................. 180,300 $ 15,235
RJR Nabisco Holdings............ 123,640 3,802
UST, Incorporated............... 214,000 6,420
--------
TOTAL TOBACCO............... 28,030
--------
TOTAL CONSUMER STAPLES...... 100,864
--------
INTEREST SENSITIVE - 22.39%
BANKS - 7.32%
BankAmerica Corporation......... 117,000 6,728
Bank of Boston Corporation...... 35,000 1,558
Bankers Trust Company New York.. 19,400 1,237
Chase Manhattan Corporation..... 132,100 7,530
Chemical Banking Corporation.... 136,712 7,775
Crestar Financial Corporation... 15,000 855
First Chicago NBD............... 68,100 4,622
First Interstate Bancorp........ 31,000 3,999
First of America Bank
Corporation................... 50,000 2,131
First Security Corporation...... 40,000 1,310
Fleet Financial Group,
Incorporated.................. 150,000 5,813
J.P. Morgan & Company,
Incorporated.................. 53,000 4,088
NationsBank Corporation......... 52,700 3,465
Norwest Corporation............. 214,800 6,337
Wells Fargo and Company......... 5,000 1,051
--------
TOTAL BANKS................. 58,499
--------
BUILDING AND MATERIALS - 0.41%
PPG Industries, Incorporated.... 45,000 1,913
Vulcan Materials Company........ 24,700 1,374
--------
TOTAL BUILDING AND
MATERIALS................. 3,287
--------
FINANCE - 0.62%
Beneficial Corporation.......... 44,000 2,156
Household International,
Incorporated.................. 50,000 2,813
--------
TOTAL FINANCE............... 4,969
--------
INSURANCE - LIFE AND MULTI-LINE - 2.35%
Aetna Life & Casualty Company... 69,000 4,856
American General Corporation.... 60,000 1,973
Aon, Incorporated............... 145,000 5,963
Lincoln National Corporation.... 45,000 2,008
Old Republic International
Corporation................... 34,800 996
</TABLE>
See accompanying notes
16
<PAGE> 17
AMERICAN AADVANTAGE BALANCED FUND
SCHEDULE OF INVESTMENTS
October 31, 1995
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Shares Value
-------- --------
(dollars in thousands)
<S> <C> <C>
Travelers Corporation........... 59,669 $ 3,013
--------
TOTAL INSURANCE - LIFE AND
MULTI-LINE................ 18,809
--------
INSURANCE - PROPERTY AND CASUALTY - 2.52%
Ace Limited (non-income
producing).................... 100 3
Allstate Corporation............ 282,257 10,373
Safeco Corporation.............. 45,000 2,888
St. Paul Companies.............. 135,600 6,882
--------
TOTAL INSURANCE - PROPERTY
AND CASUALTY.............. 20,146
--------
SAVINGS AND LOAN - 1.22%
Great Western Financial
Corporation................... 308,300 6,975
H.F. Ahmanson & Company......... 110,000 2,750
--------
TOTAL SAVINGS AND LOAN...... 9,725
--------
UTILITIES - ELECTRIC - 2.84%
Centerior Energy................ 343,600 3,436
CMS Energy Corporation.......... 60,000 1,658
Detroit Edison Company.......... 39,000 1,316
Entergy Corporation............. 207,300 5,908
Illinova Corporation............ 60,000 1,703
Niagara Mohawk Power
Corporation................... 70,000 753
Public Service Enterprise Group,
Incorporated.................. 40,000 1,175
Unicom Corporation.............. 206,400 6,760
--------
TOTAL UTILITIES -
ELECTRIC.................. 22,709
--------
UTILITIES - NATURAL GAS - 1.04%
Columbia Gas Systems,
Incorporated.................. 500 19
Panhandle Eastern Corporation... 263,100 6,643
Peoples Energy Corporation...... 58,000 1,668
--------
TOTAL UTILITIES - NATURAL
GAS....................... 8,330
--------
UTILITIES - TELEPHONE - 2.28%
AT&T Corporation................ 69,000 4,416
Pacific Telesis Group,
Incorporated.................. 270,200 8,207
SBC Communications,
Incorporated.................. 30,000 1,676
US West, Incorporated........... 82,000 3,905
--------
TOTAL UTILITIES -
TELEPHONE................. 18,204
--------
MISCELLANEOUS - INTEREST SENSITIVE - 1.79%
American Express Company........ 234,600 9,531
<CAPTION>
Shares Value
-------- --------
(dollars in thousands)
<S> <C> <C>
Federal Home Loan Mortgage
Corporation................... 14,800 $ 1,025
Federal National Mortgage
Association................... 29,875 3,133
Fund American Enterprises,
Incorporated (non-income
producing).................... 8,800 607
--------
TOTAL MISCELLANEOUS -
INTEREST SENSITIVE........ 14,296
--------
TOTAL INTEREST SENSITIVE.... 178,974
--------
CONSUMER CYCLICALS - 3.69%
AUTOMOBILE AND TRUCK - 3.23%
Dana Corporation................ 200,500 5,138
Eaton Corporation............... 118,000 6,048
Ford Motor Company.............. 258,436 7,430
General Motors Corporation...... 164,800 7,210
--------
TOTAL AUTOMOBILE AND
TRUCK..................... 25,826
--------
ELECTRICAL HOUSEHOLD
EQUIPMENT - 0.21%
Newell Company.................. 24,600 593
Whirlpool Corporation........... 20,000 1,060
--------
TOTAL ELECTRICAL HOUSEHOLD
EQUIPMENT................. 1,653
--------
TIRE AND RUBBER - 0.25%
Cooper Tire and Rubber Company.. 70,000 1,619
Goodyear Tire & Rubber Company.. 9,000 342
--------
TOTAL TIRE AND RUBBER....... 1,961
--------
TOTAL CONSUMER CYCLICALS.... 29,440
--------
INTERMEDIATE GOODS AND
SERVICES - 11.35%
CHEMICALS - 1.51%
E.I. Du Pont De Nemours &
Company....................... 60,000 3,743
Eastman Chemical Company........ 37,100 2,207
FMC Corporation (non-income
producing).................... 14,000 1,003
Monsanto Company................ 30,000 3,143
Olin Corporation................ 30,000 1,939
--------
TOTAL CHEMICALS............. 12,035
--------
FOREST PRODUCTS - 1.50%
International Paper Company..... 60,000 2,220
James River Corporation of
Virginia...................... 40,000 1,285
Union Camp Corporation.......... 40,000 2,035
Weyerhaeuser Company............ 146,900 6,482
--------
TOTAL FOREST PRODUCTS....... 12,022
--------
</TABLE>
See accompanying notes
17
<PAGE> 18
AMERICAN AADVANTAGE BALANCED FUND
SCHEDULE OF INVESTMENTS
October 31, 1995
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Shares Value
-------- --------
(dollars in thousands)
<S> <C> <C>
METALS - ALUMINUM - 0.54%
Aluminum Company of America..... 70,000 $ 3,570
Reynolds Metals Company......... 15,000 756
--------
TOTAL METALS - ALUMINUM..... 4,326
--------
NATURAL GAS
TRANSMISSION - 0.06%
Coastal Corporation............. 14,000 453
--------
OIL - 4.46%
Amoco Corporation............... 60,000 3,833
Atlantic Richfield
Corporation................... 10,000 1,068
Chevron Corporation............. 67,000 3,132
Exxon Corporation............... 77,600 5,927
Louisiana Land and Exploration
Company....................... 25,400 899
Mobil Corporation............... 20,000 2,015
Phillips Petroleum Company...... 227,200 7,327
Tenneco, Incorporated........... 136,000 5,967
Texaco, Incorporated............ 33,600 2,289
Ultramar Corporation............ 70,000 1,706
USX-Marathon Group.............. 50,000 888
Union Texas Petroleum Holdings,
Incorporated.................. 33,200 598
--------
TOTAL OIL................... 35,649
--------
OIL SERVICE - 0.28%
Baker Hughes, Incorporated...... 80,000 1,570
Ensco International (non-income
producing).................... 40,300 680
--------
TOTAL OIL SERVICE........... 2,250
--------
TRANSPORTATION - 1.33%
Conrail, Incorporated........... 55,000 3,781
CSX Corporation................. 12,000 1,005
Norfolk Southern Corporation.... 25,000 1,931
Ryder Systems, Incorporated..... 50,000 1,206
Union Pacific Corporation....... 32,500 2,125
Yellow Corporation.............. 45,000 591
--------
TOTAL TRANSPORTATION........ 10,639
--------
MISCELLANEOUS - INTERMEDIATE
GOODS & SERVICES - 1.67%
Corning, Incorporated........... 30,000 784
Dresser Industries.............. 146,700 3,044
GATX Corporation................ 40,000 1,900
Mapco, Incorporated............. 14,400 742
<CAPTION>
Shares Value
-------- --------
(dollars in thousands)
<S> <C> <C>
Phelps Dodge Corporation........ 108,100 $ 6,851
--------
TOTAL MISCELLANEOUS -
INTERMEDIATE GOODS &
SERVICES.................. 13,321
--------
TOTAL INTERMEDIATE GOODS &
SERVICES.................. 90,695
--------
CAPITAL GOODS - 8.14%
AEROSPACE - 3.94%
The Boeing Company.............. 59,900 3,931
Coltec Industries, Incorporated
(non-income producing)........ 55,100 599
Lockheed Martin Corporation..... 113,749 7,749
Northrop Corporation............ 43,000 2,462
Raytheon Company................ 218,000 9,510
Rockwell International
Corporation................... 45,000 2,003
Thiokol Corporation............. 18,100 627
United Technologies
Corporation................... 52,000 4,615
--------
TOTAL AEROSPACE............. 31,496
--------
CONGLOMERATES - 1.14%
Harsco Corporation.............. 39,000 2,057
Minnesota Mining and
Manufacturing Company......... 35,000 1,991
Teledyne, Incorporated.......... 12,000 299
Textron, Incorporated........... 69,300 4,764
--------
TOTAL CONGLOMERATES......... 9,111
--------
ELECTRICAL EQUIPMENT - 0.80%
General Electric Corporation.... 25,000 1,581
Honeywell, Incorporated......... 40,300 1,693
Sunbeam Corporation............. 58,000 870
Westinghouse Electric
Corporation................... 157,400 2,223
--------
TOTAL ELECTRICAL
EQUIPMENT................. 6,367
--------
MACHINERY - 0.36%
Cummins Engine, Incorporated.... 27,300 959
Deere and Company............... 14,000 1,251
Tecumseh Products Company....... 14,800 696
--------
TOTAL MACHINERY............. 2,906
--------
NEWSPAPERS-PUBLISHING &
PRINTING - 0.12%
Gannett Company................. 17,800 968
--------
OFFICE EQUIPMENT - 1.78%
Apple Computer.................. 28,400 1,031
International Business Machines
Corporation................... 15,000 1,459
Pitney Bowes, Incorporated...... 53,000 2,312
</TABLE>
See accompanying notes
18
<PAGE> 19
AMERICAN AADVANTAGE BALANCED FUND
SCHEDULE OF INVESTMENTS
October 31, 1995
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Shares Value
-------- --------
(dollars in thousands)
<S> <C> <C>
Xerox Corporation............... 72,600 $ 9,420
--------
TOTAL OFFICE EQUIPMENT...... 14,222
--------
TOTAL CAPITAL GOODS......... 65,070
--------
TOTAL COMMON STOCK.......... 479,418
--------
Par
Amount
--------
SHORT-TERM INVESTMENTS (NOTE A) - 3.01%
Abbey National Bank, ETD,
5.73%, Due 12-8-1995.......... $ 10,000 10,000
Bank Brussells Lambert, CTD,
5.9375%, Due 11-1-1995........ 9,054 9,054
<CAPTION>
Par
Amount Value
-------- --------
(dollars in thousands)
<S> <C> <C>
Sanwa Bank,YCD, 5.70%,
Due 12-5-95................... $ 5,000 $ 5,000
--------
TOTAL SHORT-TERM
INVESTMENTS............... 24,054
--------
TOTAL INVESTMENTS - 99.21%
(COST - $684,123)............. 792,673
--------
OTHER ASSETS, NET OF
LIABILITIES - 0.79%........... 6,340
--------
TOTAL NET ASSETS - 100%......... $799,013
========
</TABLE>
- ------------
Based on the cost of investments of $684,480 for federal income tax purposes at
October 31, 1995, the aggregate gross unrealized appreciation was $117,558, the
unrealized depreciation was $9,365, and the net unrealized appreciation of
investments was $108,193.
(A) Rates associated with short-term investments represent yield to maturity.
ABBREVIATIONS:
AB - Company
ADR - American Depository Receipt
ARM Adjustable Rate Mortgage
CTD - Cayman Time Deposit
ETD - Eurodollar Time Deposit
FRN - Floating Rate Note
MTN - Medium Term Note
PERC - Preferred Equity Redemption Certificate
PLC - Public Limited Corporation
YCD - Yankee Certificate of Deposit
See accompanying notes
19
<PAGE> 20
AMERICAN AADVANTAGE GROWTH AND INCOME FUND
SCHEDULE OF INVESTMENTS
October 31, 1995
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Shares Value
-------- --------
(dollars in thousands)
<S> <C> <C>
PREFERRED STOCK - 0.53%
ConAgra Convertible E........... 55,000 $ 2,158
National Semiconductor
Convertible A................. 20,000 1,749
RJR Nabisco, Convertible PERC... 35,500 221
Teledyne, Incorporated E........ 4,224 60
--------
TOTAL PREFERRED STOCK....... 4,188
--------
COMMON STOCK - 93.35%
FOREIGN STOCKS - 2.92%
Arthur Guinness & Sons, ADR..... 112,400 4,495
Exel Limited.................... 50,000 2,674
Hanson PLC, ADR................. 278,700 4,319
Moore Corporation Limited....... 145,000 2,772
Royal Dutch Petroleum Company,
New York Registry............. 32,000 3,931
Schlumberger Limited............ 30,000 1,867
The Seagram Company Limited..... 30,700 1,104
Volvo AB, ADR................... 80,000 1,810
--------
TOTAL FOREIGN STOCKS........ 22,972
--------
CONSUMER STAPLES - 21.64%
DEPARTMENT AND MAIL ORDER - 2.62%
K Mart Corporation.............. 338,100 2,747
The May Department Store
Company....................... 106,000 4,161
J.C. Penney Company,
Incorporated.................. 245,500 10,342
Sears Roebuck & Company......... 60,000 2,040
Woolworth Corporation........... 90,000 1,316
--------
TOTAL DEPARTMENT AND MAIL
ORDER..................... 20,606
--------
DISTILLERS AND BREWERS - 0.87%
Anheuser-Busch Companies,
Incorporated.................. 103,300 6,818
--------
DRUGS AND HOSPITAL SUPPLY - 6.36%
Allergan, Incorporated.......... 46,400 1,363
American Home Products
Corporation................... 124,600 11,043
Baxter International,
Incorporated.................. 246,700 9,529
Bristol-Myers Squibb Company.... 131,100 9,996
Eli Lilly & Company............. 39,834 3,849
Guidant Corporation............. 30,063 962
Merck & Company, Incorporated... 105,000 6,038
Upjohn Company.................. 51,000 2,588
Warner Lambert.................. 54,600 4,648
--------
TOTAL DRUGS AND HOSPITAL
SUPPLY.................... 50,016
--------
<CAPTION>
Shares Value
-------- --------
(dollars in thousands)
<S> <C> <C>
FOOD PROCESSING - 0.37%
Nabisco Holdings Corporation,
Class A....................... 108,450 $ 2,915
--------
LEISURE - 1.21%
Brunswick Corporation........... 92,200 1,798
Hasbro, Incorporated............ 142,900 4,358
King World Productions,
Incorporated (non-income
producing).................... 95,500 3,331
--------
TOTAL LEISURE............... 9,487
--------
PHOTOGRAPHY - 1.67%
Eastman Kodak Company........... 210,000 13,151
--------
PUBLISHING - 1.99%
A.H. Belo, Incorporated, Class
A............................. 122,200 4,231
R.R. Donnelley & Sons Company... 75,000 2,738
Dun & Bradstreet Corporation.... 70,000 4,183
New York Times Company.......... 161,700 4,487
--------
TOTAL PUBLISHING............ 15,639
--------
RETAIL - OTHER - 0.57%
Giant Foods Inc................. 80,000 2,570
Melville Corporation............ 60,000 1,920
--------
TOTAL RETAIL - OTHER........ 4,490
--------
TOBACCO - 5.82%
American Brands, Incorporated... 55,000 2,358
Philip Morris Companies,
Incorporated.................. 288,300 24,361
RJR Nabisco Holdings............ 314,520 9,671
UST, Incorporated............... 312,100 9,363
--------
TOTAL TOBACCO............... 45,753
--------
MISCELLANEOUS - CONSUMER STAPLES - 0.16%
Gibson Greetings,
Incorporated.................. 90,550 1,256
--------
TOTAL CONSUMER STAPLES...... 170,131
--------
INTEREST SENSITIVE - 31.63%
BANKS - 9.89%
BankAmerica Corporation......... 113,000 6,498
Bank of Boston Corporation...... 60,000 2,670
Bankers Trust Company New York.. 102,500 6,534
Chase Manhattan Corporation..... 187,000 10,659
Chemical Banking Corporation.... 186,234 10,592
Crestar Financial Corporation... 30,000 1,710
First Chicago Corporation....... 91,500 6,211
First Interstate Bancorp........ 36,000 4,644
First of America Bank
Corporation................... 51,000 2,174
First Security Corporation...... 65,000 2,129
</TABLE>
See accompanying notes
20
<PAGE> 21
AMERICAN AADVANTAGE GROWTH AND INCOME FUND
SCHEDULE OF INVESTMENTS
October 31, 1995
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Shares Value
-------- --------
(dollars in thousands)
<S> <C> <C>
Fleet Financial Group,
Incorporated.................. 242,800 $ 9,409
J.P. Morgan & Company,
Incorporated.................. 115,900 8,939
NationsBank Corporation......... 68,000 4,471
Wells Fargo and Company......... 5,000 1,051
--------
TOTAL BANKS................. 77,691
--------
BUILDING AND MATERIALS - 0.60%
PPG Industries, Incorporated.... 45,000 1,913
Vulcan Materials Company........ 50,000 2,781
--------
TOTAL BUILDING AND
MATERIALS................. 4,694
--------
FINANCE - 0.59%
Beneficial Corporation.......... 40,000 1,960
Household International,
Incorporated.................. 48,000 2,700
--------
TOTAL FINANCE............... 4,660
--------
INSURANCE - LIFE AND MULTI-LINE - 3.63%
Aetna Life & Casualty Company... 112,350 7,907
American General Corporation.... 75,000 2,466
Aon, Incorporated............... 180,600 7,427
Lincoln National Corporation.... 50,000 2,231
Old Republic International
Corporation................... 156,600 4,483
Travelers Corporation........... 78,896 3,984
--------
TOTAL INSURANCE - LIFE AND
MULTI-LINE................ 28,498
--------
INSURANCE - PROPERTY AND CASUALTY - 3.28%
Ace Limited (non-income
producing).................... 100 3
Allstate Corporation............ 379,780 13,957
Safeco Corporation.............. 55,000 3,530
St. Paul Companies.............. 163,400 8,293
--------
TOTAL INSURANCE - PROPERTY
AND CASUALTY.............. 25,783
--------
SAVINGS AND LOAN - 1.46%
Great Western Financial
Corporation................... 367,200 8,308
H.F. Ahmanson & Company......... 125,000 3,125
--------
TOTAL SAVINGS AND LOAN...... 11,433
--------
UTILITIES - ELECTRIC - 4.19%
Centerior Energy................ 479,100 4,791
CMS Energy Corporation.......... 60,000 1,658
Detroit Edison Company.......... 50,000 1,688
<CAPTION>
Shares Value
-------- --------
(dollars in thousands)
<S> <C> <C>
Entergy Corporation............. 298,300 $ 8,502
Illinova Corporation............ 70,000 1,986
New York State Electric & Gas
Corporation................... 70,000 1,768
Niagara Mohawk Power
Corporation................... 90,000 968
Peco Energy Company............. 55,000 1,609
Public Service Enterprise Group,
Incorporated.................. 70,700 2,077
Unicom Corporation.............. 240,400 7,873
--------
TOTAL UTILITIES -
ELECTRIC.................. 32,920
--------
UTILITIES - NATURAL GAS - 1.33%
Columbia Gas Systems Inc........ 700 27
Panhandle Eastern Corporation... 339,300 8,567
Peoples Energy Corporation...... 65,000 1,869
--------
TOTAL UTILITIES - NATURAL
GAS....................... 10,463
--------
UTILITIES - TELEPHONE - 3.34%
AT&T Corporation................ 115,600 7,398
Pacific Telesis Group,
Incorporated.................. 408,300 12,402
SBC Communications Inc.......... 30,000 1,676
US West, Incorporated........... 100,000 4,763
--------
TOTAL UTILITIES -
TELEPHONE................. 26,239
--------
MISCELLANEOUS - INTEREST SENSITIVE - 3.32%
American Express Company........ 299,000 12,147
Federal Home Loan Mortgage
Corporation................... 67,000 4,640
Federal National Mortgage
Association................... 63,700 6,681
Fund American Enterprises,
Incorporated (non-income
producing).................... 38,375 2,648
--------
TOTAL MISCELLANEOUS -
INTEREST SENSITIVE........ 26,116
--------
TOTAL INTEREST SENSITIVE.... 248,497
--------
CONSUMER CYCLICALS - 5.63%
AUTOMOBILE AND TRUCK - 4.92%
Dana Corporation................ 303,300 7,772
Eaton Corporation............... 178,600 9,153
Ford Motor Company.............. 371,436 10,679
General Motors Corporation...... 252,700 11,056
--------
</TABLE>
See accompanying notes
21
<PAGE> 22
AMERICAN AADVANTAGE GROWTH AND INCOME FUND
SCHEDULE OF INVESTMENTS
October 31, 1995
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Shares Value
-------- --------
(dollars in thousands)
<S> <C> <C>
TOTAL AUTOMOBILE AND
TRUCK..................... $ 38,660
--------
ELECTRICAL HOUSEHOLD EQUIPMENT - 0.37%
Newell Company.................. 53,000 1,279
Whirlpool Corporation........... 30,000 1,590
--------
TOTAL ELECTRICAL HOUSEHOLD
EQUIPMENT................. 2,869
--------
TIRE AND RUBBER - 0.34%
Cooper Tire and Rubber Company.. 75,000 1,734
Goodyear Tire & Rubber Company.. 25,000 950
--------
TOTAL TIRE AND RUBBER....... 2,684
--------
TOTAL CONSUMER CYCLICALS.... 44,213
--------
INTERMEDIATE GOODS & SERVICES - 18.02%
CHEMICALS - 2.01%
E.I. Du Pont De Nemours &
Company....................... 55,000 3,431
Eastman Chemical Company........ 51,775 3,081
FMC Corporation (non-income
producing).................... 68,800 4,928
Monsanto Company................ 23,000 2,409
Olin Corporation................ 30,000 1,939
--------
TOTAL CHEMICALS............. 15,788
--------
FOREST PRODUCTS - 1.97%
International Paper Company..... 70,000 2,590
James River Corporation of
Virginia...................... 55,000 1,767
Union Camp Corporation.......... 50,000 2,544
Weyerhaeuser Company............ 194,700 8,591
--------
TOTAL FOREST PRODUCTS....... 15,492
--------
METALS - ALUMINUM - 0.76%
Aluminum Company of America..... 97,000 4,947
Reynolds Metals Company......... 20,000 1,008
--------
TOTAL METALS - ALUMINUM..... 5,955
--------
NATURAL GAS TRANSMISSION - 0.46%
Coastal Corporation............. 111,200 3,600
--------
OIL - 8.23%
Amoco Corporation............... 111,500 7,122
Atlantic Richfield
Corporation................... 30,000 3,203
Chevron Corporation............. 120,000 5,610
Exxon Corporation............... 127,100 9,707
Louisiana Land and Exploration
Company....................... 116,925 4,136
<CAPTION>
Shares Value
-------- --------
(dollars in thousands)
<S> <C> <C>
Mobil Corporation............... 31,500 $ 3,174
Phillips Petroleum Company...... 314,400 10,139
Tenneco, Incorporated........... 184,200 8,082
Texaco, Incorporated............ 110,000 7,494
Ultramar Corporation............ 90,000 2,194
USX-Marathon Group.............. 50,000 888
Union Texas Petroleum Holdings,
Incorporated.................. 164,000 2,952
--------
TOTAL OIL................... 64,701
--------
OIL SERVICE - 0.76%
Baker Hughes, Incorporated...... 158,400 3,109
Ensco International (non-income
producing).................... 167,400 2,825
--------
TOTAL OIL SERVICE........... 5,934
--------
TRANSPORTATION - 1.63%
Conrail, Incorporated........... 55,000 3,781
CSX Corporation................. 13,000 1,089
Norfolk Southern Corporation.... 20,000 1,545
Ryder Systems, Incorporated..... 82,000 1,978
Union Pacific Corporation....... 55,000 3,596
Yellow Corporation.............. 60,000 788
--------
TOTAL TRANSPORTATION........ 12,777
--------
MISCELLANEOUS - INTERMEDIATE GOODS &
SERVICES - 2.20%
Corning, Incorporated........... 40,000 1,045
Dresser Industries.............. 189,800 3,938
GATX Corporation................ 45,000 2,138
Mapco, Incorporated............. 38,100 1,962
Phelps Dodge Corporation........ 128,800 8,163
--------
TOTAL MISCELLANEOUS -
INTERMEDIATE GOODS &
SERVICES.................. 17,246
--------
TOTAL INTERMEDIATE GOODS &
SERVICES.................. 141,493
--------
CAPITAL GOODS - 13.49%
AEROSPACE - 6.47%
The Boeing Company.............. 93,900 6,162
Coltec Industries, Incorporated
(non-income producing)........ 248,500 2,702
Lockheed Martin Corporation..... 197,394 13,447
Northrop Corporation............ 40,600 2,324
Raytheon Company................ 350,600 15,295
Rockwell International
Corporation................... 45,000 2,003
Thiokol Corporation............. 103,700 3,591
United Technologies
Corporation................... 60,000 5,325
--------
TOTAL AEROSPACE............. 50,849
--------
</TABLE>
See accompanying notes
22
<PAGE> 23
AMERICAN AADVANTAGE GROWTH AND INCOME FUND
SCHEDULE OF INVESTMENTS
October 31, 1995
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Shares Value
-------- --------
(dollars in thousands)
<S> <C> <C>
CONGLOMERATES - 2.69%
Harsco Corporation.............. 45,000 $ 2,374
Minnesota Mining and
Manufacturing Company......... 70,000 3,981
Teledyne, Incorporated.......... 140,850 3,504
Textron, Incorporated........... 163,700 11,254
--------
TOTAL CONGLOMERATES......... 21,113
--------
ELECTRICAL EQUIPMENT - 1.23%
General Electric Corporation.... 34,300 2,169
Honeywell, Incorporated......... 46,000 1,932
Sunbeam Corporation............. 200,000 3,000
Westinghouse Electric
Corporation................... 180,700 2,552
--------
TOTAL ELECTRICAL
EQUIPMENT................. 9,653
--------
MACHINERY - 0.78%
Cummins Engine, Incorporated.... 29,600 1,040
Deere and Company............... 30,000 2,681
Tecumseh Products Company....... 50,900 2,392
--------
TOTAL MACHINERY............. 6,113
--------
OFFICE EQUIPMENT - 2.32%
Apple Computer.................. 39,900 1,449
International Business Machines
Corporation................... 15,000 1,459
Pitney Bowes, Incorporated...... 80,000 3,490
Xerox Corporation............... 91,100 11,820
--------
TOTAL OFFICE
EQUIPMENT................. 18,218
--------
TOTAL CAPITAL GOODS......... $105,946
--------
TOTAL COMMON STOCK.......... 733,252
--------
<CAPTION>
Par
Amount Value
-------- --------
(dollars in thousands)
<S> <C> <C>
SHORT-TERM INVESTMENTS (NOTE A) - 6.33%
Abbey National Bank, ETD, 5.73%,
Due 12-08-1995................ $ 10,000 $ 10,000
Bank Brussells Lambert, CTD,
5.9375%,
Due 11-01-1995................ 24,714 24,714
Sanwa Bank, YCD, 5.65%,
Due 12-06-1995................ 14,993 14,993
--------
TOTAL SHORT-TERM
INVESTMENTS............... 49,707
--------
TOTAL INVESTMENTS - 100.21%
(COST $648,080)............... 787,147
--------
LIABILITIES, NET OF OTHER
ASSETS - (0.21%).............. (1,633)
--------
TOTAL NET ASSETS - 100%......... $785,514
========
</TABLE>
- ------------
Based on the cost of investments of $648,606 for federal income tax purposes at
October 31, 1995, the aggregate gross unrealized appreciation was $153,658, the
unrealized depreciation was $15,117, and the net unrealized appreciation of
investments was $138,541.
(A) Rates associated with short-term investments represent yield to maturity.
ABBREVIATIONS:
AB - Company
ADR - American Depository Receipt
CTD - Cayman Time Deposit
ETD - Eurodollar Time Deposit
PERC - Preferred Equity Redemption Certificate
PLC - Public Limited Corporation
YCD - Yankee Certificate of Deposit
See accompanying notes
23
<PAGE> 24
AMERICAN AADVANTAGE INTERNATIONAL EQUITY FUND
SCHEDULE OF INVESTMENTS
October 31, 1995
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Shares Value
---------- --------
(dollars in thousands)
<S> <C> <C>
AUSTRALIA COMMON STOCK - 6.94%
Australia & New Zealand Banking
Group ORD $1.00.............. 776,077 $ 3,247
Brambles Industries, Limited... 350,000 3,717
Burns, Philip & Co., Limited... 400,000 895
CSR, Limited................... 265,000 845
GIO Australia Holdings,
Limited...................... 493,226 1,043
News Corporation, Limited...... 210,000 1,057
News Corporation Preferred
Rights....................... 105,000 479
Pacific Dunlop, Limited........ 401,000 970
Pioneer International,
Limited...................... 860,000 2,107
QBE Insurance Group, Limited... 421,724 1,861
Westpac Banking Corporation.... 386,000 1,583
--------
TOTAL AUSTRALIA COMMON
STOCK.................... 17,804
--------
AUSTRIA COMMON STOCK - 0.93%
EVN Energie-Versorgung
Niederoesterreich AG......... 3,300 403
Mayr-Melnhof Karton AG......... 12,000 700
VA Technologie AG.............. 11,000 1,274
--------
TOTAL AUSTRIA COMMON
STOCK.................... 2,377
--------
BELGIUM COMMON STOCK - 0.91%
Arbed, SA (non-income
producing)................... 3,000 298
G.I.B. Holdings, Limited,
NPV.......................... 13,450 525
Groupe Bruxelles Lambert, SA... 11,550 1,487
Groupe Bruxelles Lambert,
NPV.......................... 209 27
--------
TOTAL BELGIUM COMMON
STOCK.................... 2,337
--------
CANADA COMMON STOCK - 2.82%
Bank of Nova Scotia............ 62,439 1,340
Canadian Imperial Bank of
Commerce..................... 60,000 1,606
IMASCO, Limited................ 75,000 1,338
Newbridge Networks Corporation
(non-income producing)....... 40,000 1,223
Noranda, Incorporated.......... 62,500 1,249
Wascana Energy, Incorporated
(non-income producing)....... 60,000 474
--------
TOTAL CANADA COMMON
STOCK.................... 7,230
--------
DENMARK COMMON STOCK - 0.65%
Novo Nordisk AS, "B"........... 7,000 890
Unidanmark AS, "A"............. 17,000 781
--------
TOTAL DENMARK COMMON
STOCK.................... 1,671
--------
<CAPTION>
Shares Value
---------- --------
(dollars in thousands)
<S> <C> <C>
FINLAND COMMON STOCK - 1.70%
Enso-Gutzeit OY................ 170,000 $ 1,333
Huhtamaki Group I Free......... 18,300 543
Metsa-Serla OY................. 20,000 744
Repola OY...................... 90,000 1,742
--------
TOTAL FINLAND COMMON
STOCK.................... 4,362
--------
FRANCE COMMON STOCK - 6.92%
Alcatel Alsthom CG ORD......... 26,081 2,226
Banque Nationale De Paris...... 13,250 545
Bongrain SA.................... 1,450 767
Credit Lyonnais-CDI (non-income
producing)................... 10,000 515
ECCO SA........................ 3,750 581
Elf Aquitaine SA............... 54,676 3,721
Fianciere Paribas.............. 2,300 127
La France SA................... 8,000 1,063
Lafarge Coppee................. 30,000 1,987
PSA Peugeot.................... 6,200 807
Rhone-Poulenc "A".............. 50,000 1,089
Saint Gobain................... 7,000 834
Thomson CSF.................... 19,500 406
Total Petroleum Company B...... 43,954 2,715
Valeo SA FRF20................. 8,200 370
--------
TOTAL FRANCE COMMON
STOCK.................... 17,753
--------
GERMANY - 7.60%
PREFERRED STOCK - 1.60%
Herlitz AG..................... 4,947 869
RWE AG......................... 4,600 1,305
Spar Handels - AG.............. 1,700 367
Volkswagen AG.................. 6,800 1,550
--------
TOTAL GERMANY PREFERRED
STOCK.................... 4,091
--------
COMMON STOCK - 6.00%
BASF AG........................ 6,620 1,462
BAYER AG....................... 12,150 3,209
Commerzbank AG................. 4,000 924
Deutsche Bank AG............... 30,000 1,353
Karstadt AG.................... 3,780 1,637
Mannesmann AG.................. 5,400 1,772
Muenchener Rueckversicherung
Aktiengesellschaft........... 300 530
Muenchener Rueckversicherung
Aktiengesellschaft
AG - Reg................... 37 77
Muenchener Rueckversicherung
Aktiengesellschaft
Warrants................... 37 4
Varta AG (non-income
producing)................... 1,520 310
Veba AG........................ 77,500 3,172
Volkswagen AG.................. 3,000 943
--------
</TABLE>
See accompanying notes
24
<PAGE> 25
AMERICAN AADVANTAGE INTERNATIONAL EQUITY FUND
SCHEDULE OF INVESTMENTS
October 31, 1995
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Shares Value
---------- --------
(dollars in thousands)
<S> <C> <C>
TOTAL GERMANY COMMON
STOCK.................... $ 15,393
--------
TOTAL GERMANY.............. 19,484
--------
HONG KONG COMMON STOCK - 5.39%
Amoy Properties................ 196,000 189
Cheung Kong Holdings,
Limited...................... 235,000 1,325
Dickson Concepts
(International), Limited..... 1,750,000 1,268
Hang Lung Development Company,
Limited...................... 710,000 1,180
HSBC Holdings, PLC............. 133,700 1,945
Hutchison Whampoa, Limited..... 200,000 1,102
National Mutual of Asia,
Limited...................... 1,700,000 1,308
New World Development Company,
Limited...................... 450,000 1,752
Oriental Press Group,
Limited...................... 3,005,000 1,234
Peregrine Investments Holdings,
Limited...................... 550,000 701
South China Morning Post
(Holdings), Limited.......... 1,100,000 640
Sun Hung Kai Properties,
Limited...................... 110,100 879
Swire Pacific, Limited "A"..... 40,000 300
--------
TOTAL HONG KONG COMMON
STOCK.................... 13,823
--------
IRELAND COMMON STOCK - 0.74%
Bank of Ireland Group.......... 279,300 1,898
--------
TOTAL IRELAND COMMON
STOCK.................... 1,898
--------
ITALY - 2.20%
PREFERRED STOCK - 0.15%
Concessioni E Costruzioni
Autostrade................... 350,000 376
--------
ITALY COMMON STOCK - 2.05%
Danieli Group Risp............. 473,960 1,308
Sasib, SPA..................... 231,000 572
STET Risp (non convertible).... 490,000 1,068
STET Societa Finanziaria
Telefonica................... 550,000 1,558
Telecom Italia, SPA............ 500,000 759
--------
TOTAL ITALY COMMON STOCK... 5,265
--------
TOTAL ITALY................ 5,641
--------
JAPAN COMMON STOCK - 12.83%
Aisin Seiki Company, Limited... 56,000 734
Canon, Incorporated............ 70,000 1,198
Chudenko Corporation........... 9,000 328
Daibiru Corporation............ 77,000 783
Daicel Chemical................ 75,000 394
Daikin Industries.............. 34,000 271
<CAPTION>
Shares Value
---------- --------
(dollars in thousands)
<S> <C> <C>
Dainippon Ink & Chemical....... 57,000 $ 243
Daiwa House Industry Company,
Limited...................... 103,000 1,541
East Japan Railway Company..... 160 756
Fuji Photo Film................ 183,000 4,528
Hitachi Koki Co., Limited...... 20,000 178
Hitachi, Limited............... 120,000 1,232
KAO Corporation................ 110,000 1,334
Kirin Brewery Company,
Limited...................... 73,000 735
Matsushita Electric Industrial
Company...................... 110,000 1,560
Nichicon Corporation........... 72,000 972
Nichido Fire & Marine
Insurance.................... 140,000 1,047
Nintendo Company, Limited...... 32,000 2,354
Nippon Sanso K K............... 10,000 45
Nippon Telegraph & Telephone
Corporation.................. 101 829
Promise Co. Ltd................ 21,000 828
Ryosan Company................. 12,000 333
Sekisui Chemical Company,
Limited...................... 127,000 1,652
Sony Corporation............... 41,800 1,881
Stanley Electric Company,
Limited...................... 57,000 350
Sumitomo Marine & Fire......... 53,000 379
Sumitomo Rubber Industries..... 135,000 1,076
Suzuki Motor Corporation,
Limited...................... 167,000 1,682
TDK Corporation................ 20,000 1,031
Toyo Seikan Kaisha............. 40,000 1,146
Toyota Motor Corporation....... 65,000 1,208
Yamato Kogyo Company, Limited.. 26,000 206
Yurtec Corporation............. 3,200 58
--------
TOTAL JAPAN COMMON STOCK... 32,892
--------
MALAYSIA COMMON STOCK - 0.64%
Kedah Cement Holdings BHD...... 350,000 545
Malaysian International
Shipping Corporation BHD..... 226,666 597
Sime Darby BHD................. 196,000 490
--------
TOTAL MALAYSIA COMMON
STOCK.................... 1,632
--------
NETHERLANDS COMMON STOCK - 8.66%
ABN AMRO Holdings NV........... 71,837 3,014
Aegon NV....................... 45,000 1,706
Akzo Nobel NV ORD.............. 19,550 2,223
Fortis AMEV NV................. 29,460 1,848
Hollandsche Beton Groep NV..... 11,428 1,721
Internationale Nederlanden
Groep NV..................... 91,766 5,465
Koninklijke Bijenkorf Beheer... 11,000 780
Nedlloyd Groep NV.............. 12,000 305
Philips Electronics............ 65,000 2,509
Royal PTT Nederland NV......... 38,000 1,335
</TABLE>
See accompanying notes
25
<PAGE> 26
AMERICAN AADVANTAGE INTERNATIONAL EQUITY FUND
SCHEDULE OF INVESTMENTS
October 31, 1995
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Shares Value
---------- --------
(dollars in thousands)
<S> <C> <C>
Unilever NV.................... 10,000 $ 1,308
--------
TOTAL NETHERLANDS COMMON
STOCK.................... 22,214
--------
</TABLE>
<TABLE>
<CAPTION>
Par
Amount
----------
<S> <C> <C>
NEW ZEALAND - 1.25%
BONDS - 0.02%
Brierley Investments, Limited
Subordinated Convertible,
9.00%, Due 6-30-1998........ $ 63 45
--------
TOTAL NEW ZEALAND BONDS... 45
--------
</TABLE>
<TABLE>
<CAPTION>
Shares
----------
<S> <C> <C>
COMMON STOCK - 1.23%
Brierley Investments,
Limited..................... 1,400,000 1,090
Fisher & Paykel, Limited...... 11,300 37
Fletcher Challenge, Limited... 765,000 2,025
--------
TOTAL NEW ZEALAND COMMON
STOCK................... 3,152
--------
TOTAL NEW ZEALAND......... 3,197
--------
NORWAY COMMON STOCK - 3.11%
Den Norske Bank, Series A
Free........................ 236,000 648
Hafslund Nycomed, Series B
Free........................ 99,500 2,779
Kvaerner Industries AS........ 20,789 874
Norsk Hydro AS................ 40,000 1,593
Saga Petroleum, Series B
Free........................ 100,000 1,204
Unitor AS..................... 70,000 865
--------
TOTAL NORWAY COMMON
STOCK................... 7,963
--------
SINGAPORE COMMON STOCK - 0.79%
Hong Kong Land (SGD).......... 250,000 450
Neptune Orient Lines.......... 300,000 329
Sembawang Corporation......... 258,000 1,249
--------
TOTAL SINGAPORE COMMON
STOCK................... 2,028
--------
SPAIN COMMON STOCK - 4.20%
Banco Espana Credito SA....... 7,000 47
Banco Popular Espanol......... 5,500 872
Banco Santander SA............ 35,300 1,536
Iberdrola SA.................. 300,357 2,260
Repsol SA..................... 31,000 924
Telefonica de Espana SA....... 359,000 4,522
Uralita (non-income
producing).................. 59,250 596
--------
TOTAL SPAIN COMMON
STOCK................... 10,757
--------
<CAPTION>
Shares Value
---------- --------
(dollars in thousands)
<S> <C> <C>
SWEDEN COMMON STOCK - 4.06%
Assidomaen AB................. 48,000 $ 1,120
Astra AB, "B" Free............ 48,000 1,734
Celsius Industrier AB, "B".... 112,000 2,116
Electrolux AB................. 30,000 1,282
Esselte AB, "A" Free.......... 2,000 30
Esselte AB, "B" Free.......... 17,000 249
Foreningsbanken AB (non-income
producing).................. 400,000 945
Scribona AB, "B" Free......... 27,900 477
Skandinaviska Enskilda
Banken A.................... 130,000 877
SKF AB, "B" Free.............. 40,000 759
Svedala Industries, "A"
Free........................ 32,000 812
--------
TOTAL SWEDEN COMMON
STOCK................... 10,401
--------
SWITZERLAND COMMON STOCK - 8.73%
BBC Brown Boveri & CIE Series
A........................... 1,300 1,506
Bucher Holdings AG............ 1,100 692
Ciba-Geigy AG................. 6,225 5,384
Forbo Holding AG-R............ 1,040 438
Gerbrueder Sulzer AG.......... 710 453
Nestle Limited................ 3,750 3,926
SGS Surveillance Holding SA... 4,200 1,441
Sig Schweiz Industries HG
AG.......................... 700 1,515
SMH AG........................ 2,000 1,246
Societe Generale Surveillance
LTD......................... 240 453
Sulzer, AG.................... 3,450 2,064
Swiss Reinsurance Company..... 2,333 2,550
Zuerich Versicherung.......... 2,500 715
--------
TOTAL SWITZERLAND COMMON
STOCK................... 22,383
--------
UNITED KINGDOM COMMON STOCK - 10.88%
Albert Fisher Group, PLC...... 1,452,500 1,169
Argyll Group, PLC............. 309,677 1,573
Associated British Foods
Group....................... 36,000 400
Barclays, PLC................. 27,900 327
Barratt Developments PLC...... 280,000 857
BAT Industries, PLC........... 216,000 1,769
Burton Group, PLC............. 900,000 1,434
Commercial Union, PLC......... 110,000 1,064
GKN, PLC...................... 60,000 764
Govett & Company, Limited..... 130,000 498
Grand Metropolitan, PLC....... 135,229 935
Hanson, PLC................... 346,000 1,058
Hillsdown Holdings, PLC....... 526,961 1,397
Kwik Save Group, PLC.......... 118,100 1,293
National Power Ord 50P........ 50,000 389
National Westminster Bank,
PLC......................... 175,000 1,745
PowerGen, PLC (Partial)....... 310,000 1,262
</TABLE>
See accompanying notes
26
<PAGE> 27
AMERICAN AADVANTAGE INTERNATIONAL EQUITY FUND
SCHEDULE OF INVESTMENTS
October 31, 1995
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Shares Value
---------- --------
(dollars in thousands)
<S> <C> <C>
Reckitt & Colman, PLC......... 94,357 $ 1,002
Rolls Royce................... 155,000 377
Royal Insurance Holdings,
PLC......................... 76,000 469
Salvesen, (Christian), PLC.... 260,000 993
Shell Transportation and
Trading, PLC................ 45,000 526
Sun Alliance Group, PLC....... 150,000 895
Tate & Lyle, PLC.............. 49,500 351
Tesco, PLC.................... 340,173 1,610
Thames Water Group, PLC....... 64,800 539
Unilever, PLC................. 80,000 1,551
Welsh Water, PLC.............. 75,000 891
WPP Group, PLC................ 307,500 747
--------
TOTAL UNITED KINGDOM
COMMON STOCK............ 27,885
--------
FOREIGN SECURITIES DENOMINATED IN U.S. DOLLARS - 2.25%
Dairy Farm International...... 908,000 745
GP Batteries International
Limited..................... 137,000 334
Jardine Matheson Holdings..... 386,600 2,358
Jardine Strategic............. 632,000 1,700
Telefonos De Mexico ADR....... 23,500 646
--------
TOTAL FOREIGN SECURITIES
DENOMINATED IN U.S.
DOLLARS................. 5,783
--------
UNITED STATES - 4.70%
</TABLE>
<TABLE>
<CAPTION>
Par Amount Value
---------- --------
(dollars in thousands)
<S> <C> <C>
UNITED STATES GOVERNMENT OBLIGATIONS (NOTE A) - 4.70%
U. S. Treasury Bill, 5.28%,
Due 11-2-1995............... $ 2,257 $ 2,256
U. S. Treasury Bill, 5.29%,
Due 11-9-1995............... 2,054 2,051
U. S. Treasury Bill, 5.18%,
Due 11-16-1995.............. 459 458
U. S. Treasury Bill, 5.30%,
Due 11-24-1995.............. 142 142
U. S. Treasury Bill, 5.17%,
Due 11-30-1995.............. 565 563
U. S. Treasury Bill, 5.21%,
Due 12-7-1995............... 3,186 3,169
U. S. Treasury Bill, 5.13%,
Due 12-14-1995.............. 1,689 1,678
U. S. Treasury Bill, 5.18%,
Due 12-21-1995.............. 330 328
U. S. Treasury Bill, 5.19%,
Due 12-28-1995.............. 32 32
U. S. Treasury Bill, 5.29%,
Due 1-11-1996............... 1,398 1,383
--------
TOTAL UNITED STATES
GOVERNMENT OBLIGA-
TIONS................... 12,060
--------
TOTAL INVESTMENTS -
98.90% (COST - $230,014).... 253,575
--------
OTHER ASSETS, NET OF
LIABILITIES - 1.10%......... 2,832
--------
TOTAL NET ASSETS - 100%....... $256,407
=========
</TABLE>
- ------------
Based on the cost of investments of $230,156 for federal income tax purposes at
October 31,1995, the aggregate gross unrealized appreciation was $33,704, the
aggregate gross unrealized depreciation was $10,285, and the net unrealized
appreciation of investments was $23,419.
(A) Rates associated with United States Government Bonds represent yield to
maturity from time of purchase.
ABBREVIATIONS:
AB - Company (Sweden)
ADR American Depository Receipt
AG - Company (Austria, Germany, Switzerland)
AS - Company (Denmark, Norway)
BHD - Berhard (Malaysia)
CDI - Certificate of Investment (France)
CG - Company General (France)
HG - Holding (Switzerland)
NPV - No Par Value (Belgium)
NV - Company (Netherlands)
ORD - Ordinary (Netherlands, France, Australia)
OY - Company (Sweden)
PLC - Public Limited Corporation (UK, Hong Kong)
SA - Company (Switzerland, Spain, Mexico, France, Belgium)
SGD - Singapore Registered (Hong Kong)
SPA - Company (Italy)
See accompanying notes
27
<PAGE> 28
AMERICAN AADVANTAGE INTERNATIONAL EQUITY FUND
INDUSTRY DIVERSIFICATION
October 31, 1995
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Percent of
Net Assets
----------
<S> <C>
Basic Industry................................................................... 25.46%
Capital Goods.................................................................... 12.19
Consumer Goods & Services........................................................ 23.91
Energy........................................................................... 4.86
Financing, Insurance & Real Estate............................................... 22.69
Transportation................................................................... 0.89
Utilities........................................................................ 4.19
Short Term Investments........................................................... 5.46
Other Assets/Liabilities......................................................... 0.35
--------
NET ASSETS............................................................. 100.00%
========
</TABLE>
28
<PAGE> 29
AMERICAN AADVANTAGE LIMITED-TERM INCOME FUND
SCHEDULE OF INVESTMENTS
October 31, 1995
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Par
Amount Value
-------- --------
(dollars in thousands)
<S> <C> <C>
U.S. GOVERNMENT AGENCY
OBLIGATIONS - 22.76%
Federal Home Loan Mortgage
Corporation, MH-1 A REMIC,
10.15%, Due 4-15-2006......... $ 268 $ 276
Federal Home Loan Mortgage
Corporation, ARM #877362,
6.125%, Due 7-1-2025.......... 9,600 9,775
Federal National Mortgage
Association, 1992-203 EB,
6.25%, Due 6-25-2005.......... 5,000 5,000
Federal National Mortgage
Association, 93 135 Z, 5.85%,
Due 7-25-2005................. 18,245 17,858
Federal National Mortgage
Association, 1995-W1 A1,
8.40%, Due 4-25-2025.......... 5,495 5,564
Federal National Mortgage
Association, ARM #80891,
6.787%, Due 1-1-2019.......... 4,399 4,528
Federal National Mortgage
Association, ARM #95321,
6.3425%, Due 4-1-2030......... 3,321 3,445
--------
TOTAL U.S. GOVERNMENT AGENCY
OBLIGATIONS............... 46,446
--------
ASSET-BACKED SECURITIES - 9.21%
Household Finance Credit Card
Trust, 1991 1 B, 8.125%, Due
10-15-1997.................... 7,500 7,556
Standard Credit Card Master
Trust, 1991 1 B, 9.00%, Due
8-7-1997...................... 11,000 11,234
--------
TOTAL ASSET-BACKED
SECURITIES................ 18,790
--------
CORPORATE OBLIGATIONS - 45.54%
BANK NOTES - 10.48%
Capital One, 8.125%, Due
2-27-1998..................... 5,000 5,199
Capital One, 8.125%, Due
3-1-2000...................... 5,000 5,305
Southtrust Bank of Alabama,
7.69%, Due 5-15-2025, Puttable
5-15-2005..................... 10,000 10,869
--------
TOTAL BANK NOTES............ 21,373
--------
BANK HOLDING COMPANIES - 12.49%
BanPonce Corporation, MTN,
6.71%, Due 5-16-1997.......... 7,000 7,049
Midlantic Corporation, 9.25%,
Due 9-1-1999.................. 9,551 10,393
<CAPTION>
Par
Amount Value
-------- --------
(dollars in thousands)
<S> <C> <C>
Regions Financial Corporation,
7.75%, Due 9-15-2024, Puttable
9-15-2004..................... $ 7,500 $ 8,050
--------
TOTAL BANK HOLDING
COMPANIES................. 25,492
--------
PERSONAL CREDIT - 12.58%
Chrysler Financial Corporation,
12.75%, Due 11-01-1999........ 8,000 9,703
Ford Motor Credit Company,
6.25%, Due 2-26-1998.......... 5,000 5,029
Household Financial Corporation,
8.95%, Due 9-15-1999.......... 10,000 10,929
--------
TOTAL PERSONAL CREDIT....... 25,661
--------
SECURITIES FIRMS - 9.99%
Bear Stearns Companies,
Incorporated, 6.92%, Due
3-9-1999...................... 10,000 9,915
Lehman Brothers Holding, VR MTN,
5.71%, Due 1-12-1999.......... 5,500 5,443
Lehman Brothers, MTN, 6.90%, Due
7-15-1999..................... 5,000 5,038
--------
TOTAL SECURITIES FIRMS...... 20,396
--------
TOTAL CORPORATE
OBLIGATIONS............... 92,922
--------
NON-AGENCY MORTGAGE BACKED OBLIGATIONS - 15.67%
Collateralized Mortgage
Obligation Trust, 56 A, 9.00%,
Due 5-1-2014.................. 293 302
Residential Funding Securities
Corporation, 6.7125%, Due
6-25-2025..................... 7,020 7,018
Resolution Trust Corporation,
1992-MH3 B1, 7.25%, Due
12-15-2011.................... 9,610 9,695
Resolution Trust Corporation,
1992-7 A3, 6.97312%, Due
3-25-2022..................... 3,510 3,580
Resolution Trust Corporation,
1992-6 A3, 6.3616%, Due
1-25-2026..................... 3,403 3,499
Resolution Trust Corporation,
1992-1 A1, 6.3860%, Due
5-25-2028..................... 3,910 3,989
Resolution Trust Corporation,
1992-4 A2, 6.2696%, Due
7-25-2028..................... 3,810 3,892
--------
TOTAL NON-AGENCY MORTGAGE
BACKED OBLIGATIONS........ 31,975
--------
FOREIGN SOVEREIGN OBLIGATION - 2.75%
Quebec, Province of, 8.625%, Due
1-19-2005..................... 5,000 5,606
</TABLE>
See accompanying notes
29
<PAGE> 30
AMERICAN AADVANTAGE LIMITED-TERM INCOME FUND
SCHEDULE OF INVESTMENTS
October 31, 1995
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Par
Amount Value
-------- --------
(dollars in thousands)
<S> <C> <C>
--------
REPURCHASE AGREEMENT (NOTE A) - 3.59%
Lehman Brothers, Inc., REPO,
5.86%, Dated 10-31-1995, Due
11-1-1995, with a maturing
value of 7,354,
(Collateralized by $7,354 U.S.
Treasury Note, 6.625%, Due
3-31-1997, market
value - $7,499)............... $ 7,331 $ 7,331
--------
<CAPTION>
Par
Amount Value
-------- --------
(dollars in thousands)
<S> <C> <C>
TOTAL INVESTMENTS - 99.52% (COST
$203,007)..................... $203,070
--------
OTHER ASSETS, NET OF
LIABILITIES - 0.48%........... 976
--------
TOTAL NET ASSETS - 100%......... $204,046
========
</TABLE>
- ---------------
Based on the cost of investments of $203,007 for federal income tax purposes at
October 31, 1995, the aggregate gross unrealized appreciation was $568, the
unrealized depreciation was $505, and the net unrealized appreciation of
investments was $63.
(A) Rates associated with short-term investments represent yield to maturity.
ABBREVIATIONS:
ARM - Adustable Rate Mortgage
MTN - Medium Term Note
REMIC - Real Estate Mortgage Investment Conduit
REPO - Repurchase Agreement
VR - Variable Rate
See accompanying notes
30
<PAGE> 31
AMERICAN AADVANTAGE MONEY MARKET FUND
SCHEDULE OF INVESTMENTS
October 31, 1995
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Par
Amount Value
-------- ----------
(dollars in thousands)
<S> <C> <C>
EURODOLLAR TIME DEPOSITS
(NOTE A) - 7.87%
Bank Brussells Lambert,
5.9375%, Due 11-1-1995...... $ 60,167 $ 60,167
Bank of Ireland, 5.9375%,
Due 11-1-1995............... 46,000 46,000
----------
TOTAL EURODOLLAR TIME
DEPOSITS................ 106,167
----------
CERTIFICATES OF DEPOSIT
(NOTE A) - 14.02%
YANKEE DOLLAR, FOREIGN
BANKS - 11.79%
Banca CRT, S.P.A., Variable
Rate, 5.8125%,
Due 12-20-1995.............. 90,000 90,000
Postipankki Bank, Limited, New
York, Variable Rate Demand,
5.875%, Due 9-5-1996
(Note C).................... 69,000 69,000
----------
TOTAL YANKEE CERTIFICATES
OF DEPOSIT.............. 159,000
----------
DOMESTIC BANK - 2.23%
Banco Popular de Puerto Rico,
Variable Rate, 6.0625%,
Due 4-1-1996 (Note B)....... 30,000 30,000
----------
TOTAL CERTIFICATES OF
DEPOSIT................. 189,000
----------
BANKERS' ACCEPTANCES
(NOTE A) - 8.51%
Bank of Tokyo, Los Angeles,
5.98%, Due 11-6-1995........ 7,000 6,994
Bank of Tokyo, New York,
6.20%, Due 2-1-1996......... 25,000 24,610
Bank of Tokyo, New York,
6.13%, Due 2-7-1996......... 10,000 9,836
Bank of Tokyo, New York,
5.86%, Due 2-15-1996........ 6,000 5,899
Bank of Tokyo, New York,
5.86%, Due 2-16-1996........ 8,500 8,355
Bank of Tokyo, New York,
5.87%, Due 3-18-1996........ 6,000 5,869
Industrial Bank of Japan,
Los Angeles, 6.11%,
Due 2-20-1996............... 36,200 35,533
Sanwa Bank, Limited, New York,
6.16%, Due 2-12-1996........ 18,000 17,689
----------
TOTAL BANKERS'
ACCEPTANCES............. 114,785
----------
<CAPTION>
Par
Amount Value
-------- ----------
(dollars in thousands)
<S> <C> <C>
COMMERCIAL PAPER
(NOTE A) - 8.82%
Caterpillar Financial Services
Corporation, 5.96%, Due
11-17-1995.................. $ 20,000 $ 19,948
Caterpillar Financial Services
Corporation, 5.97%, Due
11-21-1995.................. 50,000 49,839
Chrysler Financial
Corporation, 5.74%, Due
2-27-1996................... 50,000 49,099
----------
TOTAL COMMERCIAL PAPER.... 118,886
----------
VARIABLE RATE MEDIUM-TERM NOTES
(NOTE A) - 34.33%
American Honda Finance
Corporation, 5.9375%,
Due 1-26-1996............... 75,000 74,996
BanPonce Corporation, 6.0625%,
Due 2-16-1996 (Note B)...... 27,000 27,000
BanPonce Corporation, 6.0625%,
Due 2-28-1996 (Note B)...... 25,000 25,000
Barnett Banks, Incorporated,
5.9375%, Due 1-26-1996...... 100,000 100,000
Bear Stearns Companies,
Incorporated, 5.99%,
Due 2-5-1996................ 25,000 25,000
FINOVA Capital Corporation,
6.125%, Due 2-15-1996....... 32,275 32,289
General Electric Capital
Corporation, 5.953125%,
Due 10-3-1996............... 20,000 20,012
General Motors Acceptance
Corporation, 6.0625%,
Due 12-22-1995.............. 44,500 44,504
General Motors Acceptance
Corporation, 6.125%,
Due 5-6-1996................ 10,000 10,008
Key Corporation, 5.8625%,
Due 12-21-1995.............. 52,000 52,000
Norwest Corporation, 5.8625%,
Due 9-18-1996............... 25,000 25,024
Wells Fargo & Company,
5.7925%, Due 1-19-1996...... 27,000 26,999
----------
TOTAL VARIABLE RATE
MEDIUM - TERM NOTES..... 462,832
----------
BANK NOTES (NOTE A) - 16.47%
First National Bank of Boston,
5.75%, Due 12-4-1995........ 40,000 40,000
First National Bank of Boston,
Variable Rate, 5.905%,
Due 1-22-1996............... 35,000 35,000
Old Kent Bank & Trust Company,
Grand Rapids, Variable Rate,
5.9375%, Due 1-16-1996...... 37,000 37,000
</TABLE>
See accompanying notes
31
<PAGE> 32
AMERICAN AADVANTAGE MONEY MARKET FUND
SCHEDULE OF INVESTMENTS
October 31, 1995
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Par
Amount Value
-------- ----------
(dollars in thousands)
<S> <C> <C>
Old Kent Bank & Trust Company,
Grand Rapids, Variable Rate,
5.9375%,
Due 4-4-1996................ $ 20,000 $ 20,000
Shawmutt Bank, Connecticut,
Variable Rate, 5.9375%,
Due 11-21-1995.............. 90,000 90,000
----------
TOTAL BANK NOTES.......... 222,000
----------
MASTER NOTE (NOTE A) - 4.67%
Lehman Brothers Holdings Inc.,
Variable Rate Demand,
6.025%, Due 5-31-1996 (Note
C).......................... 63,000 63,000
----------
<CAPTION>
Par
Amount Value
-------- ----------
(dollars in thousands)
<S> <C> <C>
PROMISSORY NOTE
(NOTE A) - 5.19%
Goldman Sachs Group L.P.,
5.875%, Due 1-12-1996....... $ 70,000 $ 70,000
----------
TOTAL INVESTMENTS - 99.88%
(COST $1,346,670)........... 1,346,670
----------
OTHER ASSETS, NET OF
LIABILITIES - 0.12%......... 1,645
----------
TOTAL NET
ASSETS - 100%............... $1,348,315
==========
</TABLE>
- ---------------
Based on the cost of investments of $1,346,670 for federal income tax purposes
at October 31, 1995, there was no unrealized appreciation or depreciation of
investments.
(A) Rates associated with money market securities represent yield to maturity or
yield to next reset date.
(B) Obligation is subject to a same day credit quality put back to issuer.
(C) Obligation is subject to an unconditional put back to the issuer with seven
calendar days notice.
ABBREVIATION:
L.P. -- Limited Partnership
See accompanying notes
32
<PAGE> 33
AMERICAN AADVANTAGE MUNICIPAL MONEY MARKET FUND
SCHEDULE OF INVESTMENTS
October 31, 1995
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Par
Amount Value
------ --------
(dollars in thousands)
<S> <C> <C>
MUNICIPAL BONDS (NOTE A) - 83.59%
ALABAMA - 3.07%
Phenix City Industrial
Development Board (Mead Coated
Board Project) Series 1993A,
3.90%, Due 6-1-2028, LOC
Toronto Dominion Bank, VRDO... $ 600 $ 600
-------
TOTAL ALABAMA............... 600
-------
CALIFORNIA - 3.58%
Irvine Ranch Calif. Water
District Series 1993, 3.90%,
Due 4-1-2033, LOC Bank Of
America, VRDO................. 700 700
-------
TOTAL CALIFORNIA............ 700
-------
FLORIDA - 1.02%
Dade County, Florida Capital
Asset Acquisition, Series
1990, 4.15%, Due 10-1-2010,
LOC Sanwa Bank, VRDO.......... 200 200
-------
TOTAL FLORIDA............... 200
-------
GEORGIA - 15.34%
Development Authority of
Cartersville (Sekisui Jushi
America, Inc. Project) Series
1992, 4.95%, Due 6-1-2012, LOC
Sanwa Bank, Limited, VRDO..... 900 900
Gainesville Redevelopment
Authority Series 1986, (Hotel
of Gainesville Assoc. Project)
4.95%, Due 12-1-2007, LOC
SunTrust Bank, Atlanta,
VRDO.......................... 900 900
Thomaston-Upson County
Industrial Development Revenue
Authority (Yamaha Music
Manufacturing, Inc.), 5.10%,
Due 8-1-2018, LOC Bank of
Tokyo, VRDO................... 1,200 1,200
-------
TOTAL GEORGIA............... 3,000
-------
INDIANA - 7.66%
Indianapolis Indiana Resource
Recovery Revenue Bonds (Ogden
Martin Systems of
Indianapolis, Inc. Project)
4.20%, Due 12-1-2016, LOC
Swiss Bank, VRDO.............. 900 900
Seymour Economic Development
Revenue Bonds (Kobelco Metal
Powder of America, Inc.,
Project) 5.10%, Due
12-15-1997, LOC Industrial
Bank of Japan, VRDO........... 600 600
-------
TOTAL INDIANA............... 1,500
-------
<CAPTION>
Par
Amount Value
------ -------
(dollars in thousands)
<S> <C> <C>
KENTUCKY - 3.58%
Bowling Green Industrial
Building Revenue Bonds (TWN
Fastener, Inc. Project) Series
1988, 4.45%, Due 3-1-2008, LOC
Industrial Bank of Japan,
VRDO.......................... $ 700 $ 700
-------
TOTAL KENTUCKY.............. 700
-------
LOUISIANA - 5.67%
Louisiana Public Facilities
Authority Revenue Bonds Series
1985A, 4.30%, Due 12-1-2005,
LOC Sumitomo Bank, Limited,
VRDO.......................... 1,110 1,110
-------
TOTAL LOUISIANA............. 1,110
-------
MICHIGAN - 2.04%
Delta County, Michigan Economic
Development Authority (Mead -
Escanaba Paper Company
Project) Series 1985C, 4.00%,
Due 12-1-2023, LOC Bank of
Nova Scotia, VRDO............. 400 400
-------
TOTAL MICHIGAN.............. 400
-------
NEBRASKA - 4.60%
Lancaster County (Sun-Husker
Foods, Incorporated Project)
Series 1989, 4.45%, Due
8-15-2009, LOC Bank of Tokyo,
VRDO.......................... 900 900
-------
TOTAL NEBRASKA.............. 900
-------
NEVADA - 6.64%
Clark County Industrial
Development Revenue Bond,
(Nevada Power Company Project)
Series 1985, 4.70%, Due
12-1-2015, LOC Fuji Bank,
Limited, VRDO................. 1,300 1,300
-------
TOTAL NEVADA................ 1,300
-------
NEW YORK - 3.58%
The City of New York General
Obligation Series 1994 B-2(1),
4.05%, Due 8-15-2020, LOC
Dai-Ichi Kangyo Bank, VRDO.... 400 400
New York State Environmental
Facilities Corporation (Equity
of Huntington, Inc. Project)
Series 1989, 4.10%, Due
11-1-2014, LOC Union Bank of
Switzerland, VRDO............. 300 300
-------
TOTAL NEW YORK.............. 700
-------
</TABLE>
See accompanying notes
33
<PAGE> 34
AMERICAN AADVANTAGE MUNICIPAL MONEY MARKET FUND
SCHEDULE OF INVESTMENTS
October 31, 1995
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Par
Amount Value
------ --------
(dollars in thousands)
<S> <C> <C>
PENNSYLVANIA - 7.66%
Gettysburg Area Industrial
Development Authority,
(Dal-Tile Corporation) Series
1987B, 4.10%, Due 3-1-2004,
LOC Credit Suisse, VRDO....... $ 800 $ 800
Northumberland County Industrial
Development Authority (Foster
Wheeler Mt. Carmel, Inc.
Project) Series 1987A, 4.05%,
Due 2-1-2010, LOC Union Bank
of Switzerland, VRDO.......... 100 100
Northumberland County Industrial
Development Authority (Foster
Wheeler Mt. Carmel, Inc.
Project) Series 1987B, 4.05%,
Due 2-1-2010, LOC Union Bank
of Switzerland, VRDO.......... 600 600
-------
TOTAL PENNSYLVANIA.......... 1,500
-------
TENNESSEE - 2.55%
Blount County Industrial
Development Revenue Bonds
(Advanced Crystal Technology,
Inc. Project) Series 1988,
4.45%, Due 8-1-2008, LOC
Industrial Bank of Japan,
VRDO.......................... 500 500
-------
TOTAL TENNESSEE............. 500
-------
TEXAS - 3.07%
Harris County Industrial
Development Revenue Bonds
(Zeon Chemicals Project)
Series 1989, 4.45%, Due
2-1-2009, LOC Industrial Bank
of Japan, VRDO................ 600 600
-------
TOTAL TEXAS................. 600
-------
VIRGINIA - 3.83%
Alexandria Virginia Industrial
Development Authority, 4.20%,
Due 12-1-2016, LOC Swiss Bank,
VRDO.......................... 750 750
-------
TOTAL VIRGINIA.............. 750
-------
WASHINGTON - 7.66%
Port Angeles Industrial
Development Corporation
(Daishowa America Project)
Series 1992, 4.45%, Due
8-1-2007, LOC Industrial Bank
of Japan, VRDO................ 200 200
Port Everett Revenue Bonds
Series 1986, 4.45%, Due
12-1-2006, LOC Sumitomo Bank,
Limited, VRDO................. 1,300 1,300
-------
TOTAL WASHINGTON............ 1,500
-------
<CAPTION>
Par
Amount Value
------ -------
(dollars in thousands)
<S> <C> <C>
WEST VIRGINIA - 1.02%
West Virginia State Hospital
(St. Joseph's Hospital
Project), 4.15%, Due
10-1-2010, LOC Mitsubishi
Bank, Limited,
VRDO.......................... $ 200 $ 200
-------
TOTAL WEST VIRGINIA......... 200
-------
WYOMING - 1.02%
Platte County (Tri-State
Generation and Transmission
Association, Inc. Project)
Series 1984A, 4.10%, Due
7-1-2014, LOC Societe
Generale, VRDO................ 200 200
-------
TOTAL WYOMING............... 200
-------
TOTAL MUNICIPAL BONDS....... 16,360
-------
MUNICIPAL COMMERCIAL PAPER
(NOTE A) - 9.96%
INDIANA - 6.13%
Indiana Development Finance
Authority (Pure Air on the
Lake Partnership) Series
1990A, 3.75%, Due 12-5-1995,
LOC Fuji Bank, Limited........ 600 600
Indiana Development Finance
Authority (Pure Air on the
Lake Partnership) Series
1990A, 3.65%, Due 11-21-1995,
LOC Fuji Bank, Limited........ 600 600
-------
TOTAL INDIANA............... 1,200
-------
PENNSYLVANIA - 3.83%
Carbon County Industrial
Development Authority (Panther
Creek Project) Series 1991A,
3.65%, Due 12-5-1995, LOC
National Westminster.......... 750 750
-------
TOTAL PENNSYLVANIA.......... 750
-------
TOTAL MUNICIPAL COMMERCIAL
PAPER..................... 1,950
-------
OTHER INVESTMENTS - 6.52%
Lehman Municipal Money Market
Fund.......................... 936 936
Provident Institutional
Municipal Cash Fund........... 341 341
-------
TOTAL OTHER INVESTMENTS..... 1,277
-------
TOTAL INVESTMENTS - 100.07%
(COST - $19,587).............. 19,587
-------
LIABILITIES, NET OF OTHER
ASSETS - (0.07%).............. (13)
-------
TOTAL NET ASSETS - 100%......... $19,574
=======
</TABLE>
See accompanying notes
34
<PAGE> 35
AMERICAN AADVANTAGE MUNICIPAL MONEY MARKET FUND
SCHEDULE OF INVESTMENTS
October 31, 1995
- --------------------------------------------------------------------------------
- ---------------
Based on the cost of investments of $19,587 for federal income tax purposes at
October 31, 1995, there was no unrealized appreciation or depreciation of
investments.
(A) Rates associated with money market securities represent yield to maturity or
yield to next reset date.
ABBREVIATIONS:
LOC - Letter of Credit
VRDO - Variable Rate Demand Obligation, which is subject to an unconditional put
which requires no more than 7 days notification.
See accompanying notes
35
<PAGE> 36
(This page intentionally left blank)
36
<PAGE> 37
AMERICAN AADVANTAGE U.S. TREASURY MONEY MARKET FUND
SCHEDULE OF INVESTMENTS
October 31, 1995
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Par
Amount Value
-------- --------
(dollars in thousands)
<S> <C> <C>
REPURCHASE AGREEMENTS (NOTE A) - 78.93%
CS First Boston Corp., 5.625%,
Dated 10-31-1995, Due
11-1-1995 with a maturing
value of $2,000.
(Collateralized by $1,995 U.S.
Treasury Notes, 7.50%, due
1-31-1996, aggregate market
value - $2,041)............... $ 2,000 $ 2,001
Dean Witter Reynolds, Inc.
5.65%, Dated 10-31-1995, Due
11-1-1995 with a maturing
value of $2,000.
(Collateralized by $1,820 U.S.
Treasury Notes, 7.50%, due
11-15-2016, aggregate market
value - $2,107)............... 2,000 2,000
Fuji Securities, Inc., 5.80%,
Dated 10-31-1995, Due
11-1-1995 with a maturing
value of $2,000.
(Collateralized by $1,995 U.S.
Treasury Notes, 6.875%, due
3-31-1997, aggregate market
value - $2,039)............... 2,000 2,000
Goldman Sachs & Co., 5.70%,
Dated 10-31-1995, Due
11-1-1995 with a maturing
value of $2,000.
(Collateralized by $1,325 U.S.
Treasury Notes, 13.75%, due
8-15-2004, aggregate market
value - $2,049)............... 2,000 2,000
J.P. Morgan Securities, Inc.,
5.85% Dated 10-31-1995, Due
11-1-1995 with a maturing
value of $2,000.
(Collateralized by $1,382 U.S.
Treasury Notes, 12.00%, due
5-15-2005, aggregate market
value - $2,041)............... 2,000 2,000
Lehman Brothers, Inc., 5.86%,
Dated 10-31-1995, Due
11-1-1995 with a maturing
value of $12,665.
(Collateralized by $7,910 U.S.
Treasury Notes, 9.375%, due
4-15-1996, and $4,725, 6.75%,
due 2-28-1997, aggregate
market value - $12,916)....... 12,663 12,663
<CAPTION>
Par
Amount Value
-------- --------
(dollars in thousands)
<S> <C> <C>
Merrill Lynch Government
Securities, Inc., 5.70%, Dated
10-31-1995, Due 11-1-1995 with
a maturing value of $2,000.
(Collateralized by $2,000 U.S.
Treasury Notes, 9.375%, due
4-15-1996, aggregate market
value - $2,041)............... $ 2,000 $ 2,000
Morgan Stanley & Co., Inc.,
5.70%, Dated 10-31-1995, Due
11-1-1995 with a maturing
value of $2,000.
(Collateralized by $1,670 U.S.
Treasury Notes, 8.125%, due
8-15-2021, aggregate market
value - $2,043)............... 2,000 2,000
Nomura Securities International,
Inc., 5.85%, Dated 10-31-1995,
Due 11-1-1995 with a maturing
value of $2,000.
(Collateralized by $2,065 U.S.
Treasury Notes, 5.00%, due
1-31-1999, aggregate market
value - $2,045)............... 2,000 2,000
Sanwa Securities Co. L.P.,
5.85%, Dated 10-31-1995, Due
11-1-1995 with a maturing
value of $12,502.
(Collateralized by $11,433
U.S. Treasury Notes, 7.50%,
due 11-15-2001, aggregate
market value - $12,749)....... 12,500 12,500
Smith Barney, Inc., 5.70%, Dated
10-31-1995, Due 11-1-1995 with
a maturing value of $2,000.
(Collateralized by $2,100 U.S.
Treasury Notes, 4.75%, due
10-31-1998, aggregate market
value - $2,044)............... 2,000 2,000
--------
TOTAL REPURCHASE
AGREEMENTS................ 43,164
--------
UNITED STATES TREASURY
BILLS - 21.65%
U.S. Treasury Bill, 5.31%, Due
2-1-1996...................... 12,000 11,837
--------
TOTAL INVESTMENTS - 100.58%
(COST - $55,001).............. 55,001
--------
LIABILITIES, NET OF OTHER
ASSETS - (0.58%).............. (315)
--------
TOTAL NET ASSETS - 100%......... $ 54,686
========
</TABLE>
- ---------------
Based on the cost of investments of $55,001 for federal income tax purposes at
October 31, 1995, there was no unrealized appreciation or depreciation of
investments.
(A) Rates associated with money market securities represent yield to maturity.
ABBREVIATIONS:
L.P. - Limited Partnership
See accompanying notes
37
<PAGE> 38
AMERICAN AADVANTAGE FUNDS
STATEMENTS OF ASSETS AND LIABILITIES
October 31, 1995
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
International Limited-Term
Growth and Equity Income
Balanced Fund Income Fund Fund Fund
------------- ----------- ----------- ------------
(in thousands, except share and
per share amounts)
<S> <C> <C> <C> <C>
ASSETS:
Cash, including foreign currency..................... $ - $ - $ 5,908 $ -
Investments in securities at value (cost -- $684,123;
$648,080; $230,014; $203,007, respectively)*....... 792,673 787,147 253,575 203,070
Dividends and interest receivable.................... 6,237 1,933 674 2,849
Reclaims receivable.................................. - - 262 -
Receivable for investments sold...................... 5,327 4,675 2,181 -
Other................................................ 65 5 6 7
---------- ---------- ---------- ----------
TOTAL ASSETS..................................... 804,302 793,760 262,606 205,926
LIABILITIES:
Payable for investments purchased.................... 3,757 7,107 3,258 -
Payable for fund shares redeemed..................... 681 405 1,730 688
Unrealized depreciation on foreign currency
contracts.......................................... - - 558 -
Dividends payable.................................... - - - 1,083
Management, administrative services and investment
advisory fees payable (Note 2)..................... 726 672 439 72
Other liabilities.................................... 125 62 214 37
---------- ---------- ---------- ----------
TOTAL LIABILITIES................................ 5,289 8,246 6,199 1,880
---------- ---------- ---------- ----------
NET ASSETS....................................... $ 799,013 $ 785,514 $ 256,407 $ 204,046
========== ========== ========== ==========
NET ASSETS CONSIST OF:
Paid-in-capital...................................... $ 639,074 $ 601,519 $ 223,999 $ 208,932
Accumulated undistributed income:
Net investment income.............................. 26,077 16,460 5,440 53
Net realized gain (loss) on investments............ 25,312 28,468 3,936 (5,002)
Unrealized appreciation of investments............. 108,550 139,067 23,032 63
---------- ---------- ---------- ----------
NET ASSETS....................................... $ 799,013 $ 785,514 $ 256,407 $ 204,046
========== ========== ========== ==========
Shares outstanding (no par value):
Institutional Class.................................. 17,916,479 4,500,035 1,938,710 13,983,274
========== ========== ========== ==========
Mileage Class........................................ 74,118 138,890 95,106 59,324
========== ========== ========== ==========
PlanAhead Class...................................... 392,248 304,869 110,324 160,449
========== ========== ========== ==========
AMR Class............................................ 38,819,317 44,324,555 17,122,537 6,581,389
========== ========== ========== ==========
Net Asset Value per share:
Institutional Class.................................. $ 13.95 $ 15.91 $ 13.29 $ 9.82
========== ========== ========== ==========
Mileage Class........................................ $ 13.90 $ 15.84 $ 13.20 $ 9.82
========== ========== ========== ==========
PlanAhead Class...................................... $ 13.90 $ 15.81 $ 13.20 $ 9.82
========== ========== ========== ==========
AMR Class............................................ $ 13.98 $ 15.95 $ 13.31 $ 9.81
========== ========== ========== ==========
</TABLE>
* Includes repurchase agreement of $7,331 for the Limited-Term Income Fund.
See accompanying notes
38
<PAGE> 39
AMERICAN AADVANTAGE FUNDS
STATEMENTS OF ASSETS AND LIABILITIES
October 31, 1995
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
U.S.
Municipal Treasury
Money Money Money
Market Fund Market Fund Market Fund
-------------- ----------- -----------
(in thousands, except share and
per share amounts)
<S> <C> <C> <C>
ASSETS:
Cash............................................................... $ - $ - $ -
Investments in securities at value (cost - $1,346,670; $19,587;
$55,001, respectively)*.......................................... 1,346,670 19,587 55,001
Interest receivable................................................ 8,205 86 7
Other.............................................................. 96 2 26
-------------- ----------- -----------
TOTAL ASSETS................................................... 1,354,971 19,675 55,034
LIABILITIES:
Dividends payable.................................................. 6,223 55 251
Management, administrative services and investment advisory fees
payable (Note 2)................................................. 222 - 33
Other liabilities.................................................. 211 46 64
-------------- ----------- -----------
TOTAL LIABILITIES.............................................. 6,656 101 348
-------------- ----------- -----------
NET ASSETS..................................................... $ 1,348,315 $ 19,574 $ 54,686
============== =========== ===========
NET ASSETS CONSIST OF:
Paid-in-capital.................................................... $ 1,348,315 $ 19,574 $ 54,686
============== =========== ===========
Shares outstanding (no par value):
Institutional Class................................................ 1,206,040,567 6,862 47,184,076
============== =========== ===========
Mileage Class...................................................... 100,285,687 19,438,365 6,972,071
============== =========== ===========
PlanAhead Class.................................................... 41,988,619 128,591 529,773
============== =========== ===========
Net Asset Value per share:
Institutional Class................................................ $ 1.00 $ 1.00 $ 1.00
============== =========== ===========
Mileage Class...................................................... $ 1.00 $ 1.00 $ 1.00
============== =========== ===========
PlanAhead Class.................................................... $ 1.00 $ 1.00 $ 1.00
============== =========== ===========
</TABLE>
*Includes repurchase agreements of $43,164 for the U.S. Treasury Money Market
Fund.
See accompanying notes
39
<PAGE> 40
(This page intentionally left blank)
40
<PAGE> 41
AMERICAN AADVANTAGE FUNDS
STATEMENTS OF OPERATIONS
Year Ended October 31, 1995
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Municipal U.S. Treasury
Growth and International Limited-Term Money Money Money
Balanced Income Equity Income Market Market Market
Fund Fund Fund Fund Fund Fund Fund
--------- ----------- -------------- ------------- -------- ---------- --------------
(in thousands)
<S> <C> <C> <C> <C> <C> <C> <C>
INVESTMENT INCOME:
Interest income............ $ 20,163 $ 2,797 $ 974 $11,177 $ 95,523 $805 $3,947
Dividend income (net of
foreign taxes of $758 in
International Equity
Fund).................... 14,620 20,137 6,449 - - - -
Income derived from
securities lending,
net...................... 11 2 2 8 - - -
-------- ---------- ----------- ---------- -------- ----- -------
TOTAL INVESTMENT
INCOME............... 34,794 22,936 7,425 11,185 95,523 805 3,947
-------- ---------- ----------- ---------- -------- ----- -------
EXPENSES:
Management and investment
advisory fees (Note 2)... 2,011 1,850 942 322 2,376 30 107
Administrative service
fees:
Institutional Class...... 702 132 71 299 745 3 32
Mileage Class............ 2 4 4 2 39 7 4
PlanAhead Class.......... 6 5 3 2 8 - -
AMR Class................ 235 297 101 30 - - -
Custodian fees............. 143 114 246 70 173 2 8
Transfer agent fees:
Mileage Class............ 1 3 3 1 69 13 8
PlanAhead Class.......... 5 3 2 1 11 - -
Professional fees.......... 69 60 45 39 134 19 41
Registration fees and
expenses................. 66 64 22 38 64 46 30
Distribution
fees -- Mileage Class.... 2 3 3 1 194 36 11
Service fees -- PlanAhead
Class.................... 5 4 2 2 41 - -
Other...................... 28 23 11 22 79 7 6
-------- ---------- ----------- ---------- -------- ----- -------
3,275 2,562 1,455 829 3,933 163 247
-------- ---------- ----------- ---------- -------- ----- -------
Less fees waived (Note
2)....................... 3 3 - 3 - 40 -
-------- ---------- ----------- ---------- -------- ----- -------
NET EXPENSES........... 3,272 2,559 1,455 826 3,933 123 247
-------- ---------- ----------- ---------- -------- ----- -------
NET INVESTMENT
INCOME............... 31,522 20,377 5,970 10,359 91,590 682 3,700
-------- ---------- ----------- ---------- -------- ----- -------
REALIZED AND UNREALIZED GAIN
(LOSS) ON INVESTMENTS:
Net realized gain (loss) on
investments.............. 25,895 28,115 4,785 (1,552) 19 - 8
Net realized translation
loss on assets and
liabilities denominated
in foreign currencies.... - - (474) - - - -
Unrealized appreciation of
investments.............. 71,067 75,331 6,509 3,688 - - -
Unrealized translation gain
on assets and liabilities
denominated in foreign
currencies............... - - 3,513 - - - -
-------- ---------- ----------- ---------- -------- ----- -------
NET GAIN (LOSS) ON
INVESTMENTS.......... 96,962 103,446 14,333 2,136 19 - 8
-------- ---------- ----------- ---------- -------- ----- -------
INCREASE IN NET ASSETS
RESULTING FROM OPERATIONS.... $128,484 $ 123,823 $ 20,303 $12,495 $ 91,609 $682 $3,708
======== ========== =========== ========== ======== ===== =======
</TABLE>
See accompanying notes
41
<PAGE> 42
AMERICAN AADVANTAGE FUNDS
STATEMENTS OF CHANGES IN NET ASSETS
Year Ended October 31,
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Growth and Income International Limited-Term
Balanced Fund Fund Equity Fund Income Fund
------------------- ------------------- ------------------- -------------------
1995 1994 1995 1994 1995 1994 1995 1994
-------- -------- -------- -------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
(in thousands)
OPERATIONS:
Net investment income.......... $ 31,522 $ 26,753 $ 20,377 $ 16,186 $ 5,970 $ 3,189 $ 10,359 $ 11,205
Net realized gain (loss) on
investments (including effect
of translation of assets and
liabilities denominated in a
foreign currency)............ 25,895 5,036 28,115 20,401 4,311 4,750 (1,552) (3,501)
Net unrealized appreciation
(depreciation) of investments
(including effect of
translation of assets and
liabilities denominated in
foreign currencies).......... 71,067 (31,362) 75,331 (18,803) 10,022 5,249 3,688 (6,059)
-------- -------- -------- -------- -------- -------- -------- --------
INCREASE IN NET ASSETS
RESULTING FROM OPERATIONS.... 128,484 427 123,823 17,784 20,303 13,188 12,495 1,645
-------- -------- -------- -------- -------- -------- -------- --------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income:
Institutional Class.......... (9,177) (22,815) (702) (13,695) (376) (1,077) (6,340) (10,404)
Mileage Class................ (5) - (14) - (14) - (33) (2)
PlanAhead Class.............. (23) - (4) - (10) - (42) (1)
AMR Class.................... (17,086) - (16,041) - (3,145) - (3,944) (799)
Net realized gain on
investments:
Institutional Class.......... (2,507) (13,851) (881) (17,683) (563) (2,763) - (2,308)
Mileage Class................ (1) - (18) - (20) - - -
PlanAhead Class.............. (6) - (5) - (15) - - -
AMR Class.................... (4,561) - (19,500) - (4,435) - - -
-------- -------- -------- -------- -------- -------- -------- --------
TOTAL DISTRIBUTIONS TO
SHAREHOLDERS................. (33,366) (36,666) (37,165) (31,378) (8,578) (3,840) (10,359) (13,514)
-------- -------- -------- -------- -------- -------- -------- --------
CAPITAL SHARE TRANSACTIONS:
Proceeds from sales of
shares....................... 170,104 539,310 188,748 576,309 89,320 269,165 137,613 175,810
Dividends reinvested........... 33,152 36,351 36,862 31,075 8,233 3,472 9,154 13,043
Cost of shares redeemed........ (116,305) (455,021) (55,588) (542,044) (42,092) (159,416) (110,995) (249,720)
-------- -------- -------- -------- -------- -------- -------- --------
INCREASE (DECREASE) IN NET
ASSETS FROM CAPITAL SHARE
TRANSACTIONS................. 86,951 120,640 170,022 65,340 55,461 113,221 35,772 (60,867)
-------- -------- -------- -------- -------- -------- -------- --------
INCREASE (DECREASE) IN NET
ASSETS....................... 182,069 84,401 256,680 51,746 67,186 122,569 37,908 (72,736)
NET ASSETS:
Beginning of year.............. 616,944 532,543 528,834 477,088 189,221 66,652 166,138 238,874
-------- -------- -------- -------- -------- -------- -------- --------
END OF YEAR*................... $799,013 $616,944 $785,514 $528,834 $256,407 $189,221 $204,046 $166,138
======== ======== ======== ======== ======== ======== ======== ========
*Includes undistributed net
investment income of......... $ 26,077 $ 22,193 $ 16,460 $ 12,844 $ 5,440 $ 3,015 $ 53 $ 53
======== ======== ======== ======== ======== ======== ======== ========
</TABLE>
See accompanying notes
42
<PAGE> 43
AMERICAN AADVANTAGE FUNDS
STATEMENTS OF CHANGES IN NET ASSETS
Period Ended October 31,
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Money Market Municipal Money U.S. Treasury Money
Fund Market Fund Market Fund
----------------------------- ----------------------- -----------------------
1995 1994 1995 1994 1995 1994
------------ ------------ --------- --------- --------- ---------
(Note 1)
(in thousands)
<S> <C> <C> <C> <C> <C> <C>
OPERATIONS:
Net investment income..... $ 91,590 $ 71,736 $ 682 $ 651 $ 3,700 $ 4,016
Net realized gain on
investments............. 19 1 - - 8 17
------------ ------------ --------- --------- --------- ---------
Increase in net assets
resulting from
operations.............. 91,609 71,737 682 651 3,708 4,033
------------ ------------ --------- --------- --------- ---------
DISTRIBUTIONS TO SHAREHOLDERS
FROM:
Net investment income:
Institutional Class..... (86,432) (70,068) (194) (485) (3,301) (3,883)
Mileage Class........... (4,257) (1,668) (483) (166) (390) (133)
PlanAhead Class......... (901) - (5) - (9) -
Net realized gain on
investments:
Institutional Class..... (18) (1) - - (7) (16)
Mileage Class........... (1) - - - (1) (1)
PlanAhead Class......... - - - - - -
------------ ------------ --------- --------- --------- ---------
TOTAL DISTRIBUTIONS TO
SHAREHOLDERS............ (91,609) (71,737) (682) (651) (3,708) (4,033)
------------ ------------ --------- --------- --------- ---------
CAPITAL SHARE TRANSACTIONS:
Proceeds from sales of
shares.................. 12,531,768 15,659,543 189,500 257,892 389,427 345,440
Dividends reinvested...... 54,680 27,886 668 595 2,823 2,962
Cost of shares redeemed... (13,189,189) (16,649,945) (191,043) (238,038) (411,339) (411,440)
------------ ------------ --------- --------- --------- ---------
INCREASE (DECREASE) IN NET
ASSETS FROM CAPITAL
SHARE TRANSACTIONS...... (602,741) (962,516) (875) 20,449 (19,089) (63,038)
------------ ------------ --------- --------- --------- ---------
INCREASE (DECREASE) IN NET
ASSETS.................. (602,741) (962,516) (875) 20,449 (19,089) (63,038)
NET ASSETS:
Beginning of period....... 1,951,056 2,913,572 20,449 - 73,775 136,813
------------ ------------ --------- --------- --------- ---------
END OF PERIOD............. $ 1,348,315 $ 1,951,056 $ 19,574 $ 20,449 $ 54,686 $ 73,775
============ ============ ========= ========= ========= =========
</TABLE>
See accompanying notes
43
<PAGE> 44
AMERICAN AADVANTAGE FUNDS
NOTES TO FINANCIAL STATEMENTS
October 31, 1995
- --------------------------------------------------------------------------------
1. ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES
American AAdvantage Funds (the "Trust") is organized as a Massachusetts
business trust and is registered under the Investment Company Act of 1940, as
amended, as a no-load, open-end, management investment company with seven
separate funds: the American AAdvantage Balanced Fund, the American AAdvantage
Growth and Income Fund, the American AAdvantage International Equity Fund, the
American AAdvantage Limited-Term Income Fund, the American AAdvantage Money
Market Fund, the American AAdvantage Municipal Money Market Fund and the
American AAdvantage U.S. Treasury Money Market Fund (collectively, the "Funds").
The Municipal Money Market Fund commenced active operations on November 10,
1993. The Trust commenced sales of a second class of shares of the Funds,
designated as "Mileage Class" shares, on November 1, 1991 for the Money Market
Fund, November 1, 1993 for the U.S. Treasury Money Market Fund, November 10,
1993 for the Municipal Money Market Fund and on August 1, 1994 for the Balanced,
Growth and Income, International Equity and Limited-Term Income Funds (the
"Variable NAV Funds"). At the same time, the existing shares of each Fund were
redesignated as "Institutional Class" shares. On August 1, 1994, the Trust
commenced sales of a third class of shares of the Funds, designated as
"PlanAhead Class" shares and a fourth class of shares of the Variable NAV Funds,
designated as "AMR Class" shares. Differences between the Classes include the
services offered to and the expenses borne by each class and certain voting
rights. Investment income, net capital gains (losses), and all expenses incurred
by the Funds are allocated based on relative net assets of each class, except
for 12b-1 fees, service fees and certain other fees and expenses related solely
to one class of shares. The Mileage Class is the only class of shares which has
a 12b-1 distribution fee, and the PlanAhead Class is the only class of shares
with a service fee.
AMR Investment Services, Inc. (the "Manager") is a wholly-owned subsidiary
of AMR Corporation, the parent company of American Airlines, Inc. ("American"),
and was organized in 1986 to provide business management, advisory,
administrative and asset management consulting services to the Trust and other
investors.
The following is a summary of the significant accounting policies followed
by the Funds.
Security Valuation
Equity securities that are primarily traded on domestic securities
exchanges are valued at the last quoted sales price on a designated exchange
prior to the close of trading on the New York Stock Exchange (the "Exchange")
or, lacking any current sales, on the basis of the last current bid price prior
to the close of trading on the Exchange. Securities that are primarily traded on
foreign securities exchanges are generally valued at the preceding closing
values of such securities on their respective exchanges where primarily traded.
However, events may occur which affect the values of such securities and the
exchange rates between the time of valuation and the close of the Exchange.
Should events materially affect the value of such securities during this period,
the securities are priced at fair value, as determined in good faith and
pursuant to procedures approved by the Board of Trustees (the "Board").
Over-the-counter equity securities are valued on the basis of the last bid price
on that date prior to the close of trading. Debt securities (other than
short-term securities) normally will be valued on the basis of prices provided
by a pricing service and may take into account appropriate factors such as
institution-size trading in similar groups of securities, yield, quality, coupon
rate, maturity, type of issue, trading
44
<PAGE> 45
AMERICAN AADVANTAGE FUNDS
NOTES TO FINANCIAL STATEMENTS
October 31, 1995 (Continued)
- --------------------------------------------------------------------------------
characteristics and other market data. In some cases, the prices of debt
securities may be determined using quotes obtained from brokers. Securities for
which market quotations are not readily available are valued at fair value, as
determined in good faith and pursuant to procedures approved by the Board.
Investment grade short-term obligations with 60 days or less to maturity and
securities of the Money Market, Municipal Money Market and U.S. Treasury Money
Market Funds (the "Money Market Funds") are valued using the amortized cost
method. In the event that a deviation of 1/2 of 1% or more exists between the
$1.00 per share price of the Money Market Funds, calculated at amortized cost,
and the price per share calculated by reference to market quotations, or if
there is any other deviation which the Board believes would result in a material
dilution to shareholders or purchasers, the Board will promptly consider the
appropriate action which should be initiated.
Security Transactions and Investment Income
Security transactions are recorded on the trade date of the security
purchase or sale. The cost of securities sold is determined by the specific
identification method. Dividend income is recorded on the ex-dividend date
except certain dividends from foreign securities which are recorded as soon as
the information is available to the Funds. Interest income is earned from
settlement date, recorded on the accrual basis, and adjusted, if necessary, for
amortization of premiums or accretion of discounts on investment grade
short-term securities and zero coupon instruments.
Valuation of Shares
The price per share is calculated separately for each class of each Fund on
each day on which shares are offered for sale and orders accepted or upon
receipt of a redemption request. With respect to a class of a Fund, price per
share is computed by dividing the value of the Class's pro rata allocation of
the Fund's investments and other assets, less liabilities, by the number of
Class shares outstanding.
Federal Income and Excise Taxes
It is the policy of each of the Funds to comply with the requirements of
the Internal Revenue Code applicable to regulated investment companies and to
distribute substantially all net investment income as well as any net realized
capital gains on the sale of investments. Therefore, no federal income or excise
tax provision is required.
Dividends and Distributions
Dividends from net investment income of the Balanced, Growth and Income,
and International Equity Funds, normally will be declared and paid annually. The
Limited-Term Income Fund generally declares dividends from net investment income
daily, payable monthly. Distributions, if any, of net realized capital gains
normally will be paid annually after the close of the fiscal year in which
realized.
The Money Market Funds generally declare dividends daily from net
investment income and net short-term capital gain, if any, payable monthly.
Dividends are determined in accordance with income tax principles which may
treat certain transactions differently than generally accepted accounting
principles.
45
<PAGE> 46
AMERICAN AADVANTAGE FUNDS
NOTES TO FINANCIAL STATEMENTS
October 31, 1995 (Continued)
- --------------------------------------------------------------------------------
Expenses
Expenses directly attributable to a Fund are charged to that Fund's
operations. Expenses applicable to more than one investment portfolio of the
Trust are allocated among the Trust's portfolios, usually on the basis of
relative net assets. Each share of each Fund, regardless of class, bears equally
those expenses that are allocated to the Fund as a whole.
Currency Translation
All assets and liabilities initially expressed in foreign currency values
are converted into U.S. dollar values at the bid price of such currencies
against U.S. dollars as last quoted by a recognized dealer. Income and expenses
and purchases and sales of investments are translated into U.S. dollars at the
rate of exchange prevailing on the respective dates of such transactions. The
Funds include that portion of the results of operations resulting from changes
in foreign exchange rates with net realized and unrealized gain on investments,
as appropriate.
Forward Foreign Currency Contracts
The International Equity Fund may enter into forward foreign currency
contracts to hedge the exchange rate risk on investment transactions or to hedge
the value of portfolio securities denominated in foreign currencies. Forward
foreign currency contracts are valued at the forward exchange rate prevailing on
the day of valuation.
Repurchase Agreements
Under the terms of a repurchase agreement, securities are acquired by a
Fund from a securities dealer or a bank which are subject to resale at a later
date. Repurchase agreements are fully collateralized by U.S. Treasury or
Government agency securities. All collateral is held through the Funds'
custodian bank and is monitored daily by each Fund so that the collateral's
market value exceeds the carrying value of the repurchase agreement.
2. MANAGEMENT, ADMINISTRATIVE SERVICES, INVESTMENT ADVISORY AND SHAREHOLDER
SERVICES AGREEMENTS
The Trust and the Manager are parties to a Management Agreement which,
together with the Administrative Services and Shareholder Services Agreements
described below, obligate the Manager to provide or oversee the provision of all
administrative, investment advisory and portfolio management services.
Investment assets of the Balanced, Growth and Income, and International Equity
Funds are managed by multiple investment advisers which have entered into
separate investment advisory agreements with the Manager. The Manager serves as
the sole investment adviser to the Limited-Term Income Fund, and each of the
Money Market Funds. As compensation for performing investment advisory services
for the Funds, the Manager receives from the Funds an annualized fee equal to
.20% of the net asset value of the Limited-Term Income Fund, .15% of the net
asset value of each of the Money Market Funds, and .05% of the net asset value
of the Balanced, Growth and Income, and International Equity Funds. In addition,
the Manager is reimbursed by the Funds for fees paid to investment advisers
hired by
46
<PAGE> 47
AMERICAN AADVANTAGE FUNDS
NOTES TO FINANCIAL STATEMENTS
October 31, 1995 (Continued)
- --------------------------------------------------------------------------------
the Manager to direct investment activities of the Balanced, Growth and Income
and International Equity Funds.
Prior to August 1, 1994, shareholders of the Variable NAV Funds had to
enter into a Shareholder Services Agreement with the Manager under which the
Manager agreed to provide or oversee administrative and management services.
Under the agreement, the Manager received from each shareholder a fee at an
annual rate of up to .30% of that shareholder's net assets invested in the
Funds. Shareholder services fees charged could vary based on the size of a
shareholder's investment. Under this agreement shareholder services fees were
charged directly to shareholders and were not an expense of the Funds and,
therefore, are not included in the Funds' Statements of Operations. The
Shareholder Services Agreements were terminated on July 31, 1994 and replaced by
an Administrative Services Agreement.
The Manager and the Trust entered into an Administrative Services Agreement
effective October 1, 1990 for the Money Market Fund, March 2, 1992 for the U.S.
Treasury Money Market Fund, November 10, 1993 for the Municipal Money Market
Fund, and August 1, 1994 for the Variable NAV Funds which obligates the Manager
to provide or oversee administrative and management services to the Funds. As
compensation for performing the duties required under the Administrative
Services Agreement, the Manager receives from each of the Money Market Funds and
the AMR Class of the Variable NAV Funds an annualized fee of .05% of net assets.
The Manager receives an annualized fee of .30% of the net assets of the
Institutional, Mileage, and PlanAhead Classes of the Variable NAV Funds. During
the year ended October 31, 1995, the Manager waived management and
administrative services fees totaling $40,000 for the Municipal Money Market
Fund.
The Trust has adopted a "defensive" Distribution Plan in accordance with
Rule 12b-1 under the Investment Company Act of 1940, pursuant to which no fees
may be charged to the Funds for distribution purposes. However, the plan
authorizes the fees received by the Manager and the investment advisers hired by
the Manager to be used for distribution purposes. Under this plan, the Trust
does not intend to compensate the Manager or any other party, either directly or
indirectly, for the distribution of Trust shares. Each Mileage Class has adopted
a separate distribution plan pursuant to Rule 12b-1 which provides that each
Mileage Class will pay an annual fee of .25% of its average daily net assets to
the Manager as compensation for distribution assistance. The fee will be payable
without regard to whether the amount of the fee is more or less than the actual
expenses incurred in a particular month by the Manager for distribution
assistance. During the year ended October 31, 1995, the Manager waived fees
related to the Mileage Class of the Balanced, Growth and Income and Limited-Term
Income Funds. The amounts waived were immaterial to each Fund.
3. TRANSACTIONS WITH AFFILIATES
Certain officers or trustees of the Trust are also officers of the Manager
or American. The Trust makes no direct payments to its officers. Unaffiliated
trustees are provided unlimited air transportation. For the year ended October
31, 1995, the cost of air transportation was not material to any of the Funds.
At October 31, 1995, AMR Corporation and subsidiary companies and Employee
Benefit Trusts thereof owned 100% of AMR Class shares of the Variable NAV Funds,
11% of the Institutional Class shares of the Money Market Fund and 6% of the
Institutional Class shares of the Municipal Money Market Fund.
47
<PAGE> 48
AMERICAN AADVANTAGE FUNDS
NOTES TO FINANCIAL STATEMENTS
October 31, 1995 (Continued)
- --------------------------------------------------------------------------------
Trustees and officers of the trust as a group owned 1% of the Institutional
Class of the Growth and Income Fund at October 31, 1995.
4. INVESTMENT TRANSACTIONS
Investment transactions for the year ended October 31, 1995 (excluding
short-term investments) are as follows (in thousands):
<TABLE>
<CAPTION>
Balanced Growth and International Limited-Term
Fund Income Fund Equity Fund Income Fund
-------- ----------- ----------- ------------
<S> <C> <C> <C> <C>
Purchases....................................................... $583,674 $ 297,926 $96,399 $310,634
Proceeds from sales............................................. 491,584 151,983 43,167 252,182
</TABLE>
5. CAPITAL SHARE TRANSACTIONS
Variable NAV Funds
The tables below summarize the activity in capital shares for each Class of
the Variable NAV Funds (in thousands):
<TABLE>
<CAPTION>
Year ended October 31, 1995 Institutional Class Mileage Class PlanAhead Class AMR Class
- ---------------------------------------- ------------------- --------------- ----------------- -----------------
Balanced Fund Shares Amount Shares Amount Shares Amount Shares Amount
- ---------------------------------------- ------- --------- ------ ------ ------ -------- ------ --------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Shares sold............................. 3,917 $ 50,397 88 $1,108 383 $ 5,102 8,920 $113,497
Reinvestment of dividends............... 999 11,470 1 6 3 29 1,886 21,647
Shares redeemed......................... (5,037) (64,582) (18) (239) (36) (487) (3,812) (50,997)
------- --------- ----- ------ ------ -------- ------ --------
Net increase (decrease) in shares
outstanding........................... (121) $ (2,715) 71 $ 875 350 $ 4,644 6,994 $ 84,147
======= ========= ===== ====== ===== ======== ====== ========
Growth and Income Fund
- ----------------------------------------
Shares sold............................. 3,606 $ 53,296 160 $2,274 1,175 $17,502 7,953 $115,676
Reinvestment of dividends............... 101 1,282 2 31 1 8 2,788 35,541
Shares redeemed......................... (810) (12,073) (33) (506) (875) (12,839) (2,052) (30,170)
------- --------- ----- ------ ------ -------- ------ --------
Net increase in shares outstanding...... 2,897 $ 42,505 129 $1,799 301 $ 4,671 8,689 $121,047
======= ========= ===== ====== ===== ======== ====== ========
International Equity Fund
- ----------------------------------------
Shares sold............................. 941 $ 11,924 135 $1,678 339 $ 4,275 5,802 $ 71,443
Reinvestment of dividends............... 51 599 3 33 2 21 644 7,580
Shares redeemed......................... (850) (10,686) (59) (759) (260) (3,288) (2,181) (27,359)
------- --------- ----- ------ ----- -------- ------ --------
Net increase in shares outstanding...... 142 $ 1,837 79 $ 952 81 $ 1,008 4,265 $ 51,664
======= ========= ===== ====== ===== ======== ====== ========
Limited-Term Income Fund
- ----------------------------------------
Shares sold............................. 11,246 $ 109,868 103 $ 999 155 $ 1,517 2,596 $ 25,229
Reinvestment of dividends............... 542 5,265 3 29 3 27 395 3,833
Shares redeemed......................... (9,396) (91,138) (62) (605) (39) (381) (1,934) (18,871)
------- --------- ----- ------ ----- -------- ------ --------
Net increase in shares outstanding...... 2,392 $ 23,995 44 $ 423 119 $ 1,163 1,057 $ 10,191
======= ========= ===== ====== ===== ======== ====== ========
</TABLE>
48
<PAGE> 49
AMERICAN AADVANTAGE FUNDS
NOTES TO FINANCIAL STATEMENTS
October 31, 1995 (Continued)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Year ended October 31, 1994 Institutional Class Mileage Class PlanAhead Class AMR Class
- ---------------------------------------- ------------------- --------------- ----------------- -----------------
Balanced Fund Shares Amount Shares Amount Shares Amount Shares Amount
- ---------------------------------------- ------- --------- ------ ------ ------ -------- ------ --------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Shares sold............................. 11,589 $ 143,142 3 $ 39 43 $ 524 32,030 $395,605
Reinvestment of dividends............... 2,922 36,351 0 0 0 0 0 0
Shares redeemed......................... (36,722) (452,498) 0 0 0 0 (204) (2,523)
------- --------- ----- ----- ----- -------- ------ --------
Net increase (decrease) in shares
outstanding........................... (22,211) $(273,005) 3 $ 39 43 $ 524 31,826 $393,082
======= ========= ===== ===== ===== ======== ====== ========
Growth and Income Fund
- ----------------------------------------
Shares sold............................. 5,057 $ 70,406 10 $ 148 4 $ 54 36,133 $505,701
Reinvestment of dividends............... 2,226 31,075 0 0 0 0 0 0
Shares redeemed......................... (38,282) (534,986) 0 0 0 0 (497) (7,058)
------- --------- ----- ----- ----- -------- ------ --------
Net increase (decrease) in shares
outstanding........................... (30,999) $(433,505) 10 $ 148 4 $ 54 35,636 $498,643
======= ========= ===== ===== ===== ======== ====== ========
International Equity Fund
- ----------------------------------------
Shares sold............................. 8,545 $ 104,872 16 $ 206 29 $ 370 12,967 $163,717
Reinvestment of dividends............... 283 3,472 0 0 0 0 0 0
Shares redeemed......................... (12,555) (158,038) 0 0 0 0 (109) (1,378)
------- --------- ----- ----- ----- -------- ------ --------
Net increase (decrease) in shares
outstanding........................... (3,727) $ (49,694) 16 $ 206 29 $ 370 12,858 $162,339
======= ========= ===== ===== ===== ======== ====== ========
Limited-Term Income Fund
- ----------------------------------------
Shares sold............................. 11,682 $ 116,153 15 $ 150 134 $ 1,303 5,952 $ 58,204
Reinvestment of dividends............... 1,256 12,486 0 1 0 0 57 556
Shares redeemed......................... (24,701) (244,102) 0 0 (92) (899) (485) (4.719)
------- --------- ----- ----- ----- -------- ------ --------
Net increase (decrease) in shares
outstanding........................... (11,763) $(115,463) 15 $ 151 42 $ 404 5,524 $ 54,041
======= ========= ===== ===== ===== ======== ====== ========
</TABLE>
Money Market Funds
The tables below summarize the activity in capital shares for each class of
the Money Market Funds (in thousands). Each share is valued at $1.00:
<TABLE>
<CAPTION>
Institutional Class Mileage Class PlanAhead Class
-------------------------- -------------------- ------------------
Period ended Period ended Period ended
Money Market Fund 10/31/95 10/31/94 10/31/95 10/31/94 10/31/95 10/31/94
- ------------------------------------------ ----------- ----------- -------- -------- ------- --------
<S> <C> <C> <C> <C> <C> <C>
Shares sold............................... 12,106,153 15,486,169 297,557 173,349 128,058 25
Reinvestment of dividends................. 50,158 26,446 3,863 1,440 659 0
Shares redeemed........................... (12,843,415) (16,502,417) (259,020) (147,528) (86,754) 0
----------- ----------- -------- -------- ------- -----
Net increase (decrease) in shares
outstanding............................. (687,104) (989,802) 42,400 27,261 41,963 25
=========== =========== ======== ======== ======= =====
</TABLE>
49
<PAGE> 50
AMERICAN AADVANTAGE FUNDS
NOTES TO FINANCIAL STATEMENTS
October 31, 1995 (Continued)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Institutional Class Mileage Class PlanAhead Class
-------------------------- -------------------- -------------------
Period ended Period ended Period ended
Municipal Money Market Fund 10/31/95 10/31/94 10/31/95 10/31/94 10/31/95 10/31/94
- ----------------------------------------- ----------- ----------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C> <C>
Shares sold.............................. 146,600 234,665 42,208 23,227 692 0
Reinvestment of dividends................ 223 456 440 139 5 0
Shares redeemed.......................... (156,552) (225,385) (33,923) (12,653) (568) 0
----------- ----------- -------- -------- -------- -----
Net increase (decrease) in shares
outstanding............................ (9,729) 9,736 8,725 10,713 129 0
=========== =========== ======== ======== ========= =====
U.S. Treasury Money Market Fund
- -----------------------------------------
Shares sold.............................. 371,049 324,942 16,404 20,498 1,974 0
Reinvestment of dividends................ 2,455 2,858 362 104 6 0
Shares redeemed.......................... (393,927) (397,005) (15,962) (14,435) (1,450) 0
----------- ----------- -------- -------- -------- -----
Net increase (decrease) in shares
outstanding............................ (20,423) (69,205) 804 6,167 530 0
=========== =========== ======== ======== ======== =====
</TABLE>
6. COMMITMENTS
In order to protect against a decline in the value of particular foreign
currencies against the U.S. dollar, the International Equity Fund has entered
into forward contracts to deliver foreign currency in exchange for U.S. dollars
as described below. The Fund bears the market risk that arises from changes in
foreign exchange rates, and accordingly, the unrealized gain (loss) on these
contracts is reflected in the accompanying financial statements. The Fund also
bears the credit risk if the counterparty fails to perform under the contract.
At October 31, 1995, the Fund had outstanding forward foreign currency contracts
as follows:
<TABLE>
<CAPTION>
Contracts to Sell Settlement Unrealized
- ------------------------------------------------------------------------- Date Value Gain (Loss)
(amounts in thousands) ---------- ------- -----------
<S> <C> <C> <C> <C>
3,000 CHF............................................................ 11/14/95 $ 2,648 ($266)
9,450 FRF............................................................ 11/20/95 1,936 (160)
310,000 ESP............................................................ 12/1/95 2,536 (26)
1,800 DEM............................................................ 8/9/96 1,297 (4)
8,000 FRF............................................................ 10/11/96 1,635 (40)
303,456 JPY............................................................ 10/11/96 3,145 55
5,300 DEM............................................................ 3/1/96 3,791 (117)
------- -------
Total contracts to sell
(Receivable amount $16,430)............................................. $16,988 $(558)
======= =======
</TABLE>
7. SECURITIES LENDING
The Funds participate in a securities lending program under which
securities are loaned to selected institutional investors for a fee. All such
loans require collateralization with securities of the U.S. Government and its
agencies that at all times equal at least 100% of the market value of the loaned
securities plus accrued interest. At October 31, 1995, securities with a market
value of approximately $11,029,100, $9,408,500 and $3,641,100 were loaned by the
Balanced, Growth and Income and International Equity Funds, respectively. The
collateral for these loans totaled $11,226,200, $9,600,200 and $3,824,200,
respectively.
50
<PAGE> 51
AMERICAN AADVANTAGE FUNDS
NOTES TO FINANCIAL STATEMENTS
October 31, 1995 (Continued)
- --------------------------------------------------------------------------------
8. SUBSEQUENT EVENT
Each Fund's Board of Trustees and shareholders approved, effective November
1, 1995, a change in the operating structure of each Fund to a Hub and Spoke(R)
structure. Under this new structure, the investable assets of each Fund (Spoke)
were transferred to a corresponding portfolio of the AMR Investment Services
Trust (Hub), a newly formed open-end management investment company, with
identical investment advisers and investment objectives as the existing Funds.
51
<PAGE> 52
AMERICAN AADVANTAGE BALANCED FUND
FINANCIAL HIGHLIGHTS
(For a share outstanding throughout the period)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Institutional Class
------------------------------------------------------------------
Year Ended October 31,
------------------------------------------------------------------
1991 1992 1993 1994(1) 1995(3)(4)
-------- -------- -------- -------- ---------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period............ $ 9.87 $ 11.60 $ 11.99 $ 13.23 $ 12.36
-------- -------- -------- -------- ---------
Income from investment operations:
Net investment income......................... 0.58 0.55 0.49 0.57 0.54
Net gains (losses) on securities (both
realized and unrealized).................... 1.79 0.41 1.57 (0.54) 1.71
-------- -------- -------- -------- ---------
Total from investment operations................ 2.37 0.96 2.06 0.03 2.25
-------- -------- -------- -------- ---------
Less distributions:
Dividends from net investment income.......... (0.64) (0.56) (0.52) (0.56) (0.52)
Distributions from net realized gains on
securities.................................. -- (0.01) (0.30) (0.34) (0.14)
-------- -------- -------- -------- ---------
Total distributions............................. (0.64) (0.57) (0.82) (0.90) (0.66)
-------- -------- -------- -------- ---------
Net asset value, end of period.................. $ 11.60 $ 11.99 $ 13.23 $ 12.36 $ 13.95
======== ======== ======== ======== =========
Total return (annualized)(5)(6)(7).............. 25.35% 8.75% 19.19% (0.08)% 19.39%
======== ======== ======== ======== =========
Ratios/supplemental data:
Net assets, end of period (in thousands)...... $311,906 $370,087 $532,543 $222,873 $249,913
Ratios to average net assets
(annualized)(8)(9)(10):
Expenses.................................... 0.37% 0.35% 0.34% 0.36% 0.63%
Net investment income....................... 6.06% 5.31% 4.91% 4.77% 4.30%
Portfolio turnover rate....................... 55% 80% 83% 48% 73%
</TABLE>
- ---------------
(1) Average shares outstanding for the period rather than end of period shares
were used to compute net investment income per share.
(2) The Mileage, PlanAhead and AMR Classes commenced active operations on
August 1, 1994.
(3) Class expenses per share were subtracted from net investment income per
share for the Fund before class expenses to determine net investment income
per share.
(4) GSB Investment Management, Inc. was added as an investment adviser to the
Balanced Fund as of January 1, 1995.
(5) Total return is calculated assuming an initial investment is made at the
net asset value last calculated on the business day before the first day of
each period reported, reinvestment of all dividends and capital gains
distributions on the payable date, accrual for the maximum shareholder
services fee of .30% (for periods prior to August 1, 1994) and a sale at
the net asset value on the last day of each period reported.
(6) Total returns for the Mileage, PlanAhead and AMR Classes for the periods
ended October 31, 1994 reflect Institutional Class returns from November 1,
1993 through July 31, 1994 and returns of the applicable class for the
period August 1, 1994 (commencement of operations of the new classes)
through October 31, 1994. Due to the different expense structures between
the classes, total returns would vary from the results shown had the
classes been in operation for the entire year.
(7) Total returns for the Mileage and PlanAhead Classes for the period ended
October 31, 1994 and for the year ended October 31, 1995 exclude fees
waived by the Manager. The effect on total returns was immaterial in each
period.
(8) Effective August 1, 1994, expenses include administrative services fees
paid by the Fund to the Manager. Prior to that date, expenses exclude
shareholder services fees paid directly by shareholders to the Manager,
which amounted to approximately $.01 per share in each period on an
annualized basis.
(9) The method of determining average net assets was changed from a monthly
average to a daily average starting with the periods ended October 31,
1994.
(10) Operating results of the Mileage and PlanAhead Classes exclude fees waived
by the Manager. Had the Mileage Class paid such fees, the ratio of expenses
and net investment income to average net assets would have been 1.05% and
3.58%, respectively, for the period ended October 31, 1994, and 1.10% and
3.64%, respectively, for the year ended October 31, 1995. Had the PlanAhead
Class paid such fees the ratios would have been .99% and 3.96%,
respectively, for the period ended October 31, 1994, and 1.09% and 3.60%,
respectively, for the year ended October 31, 1995.
52
<PAGE> 53
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Mileage Class PlanAhead Class AMR Class
- --------------------------- --------------------------- ----------------------------
Period Ended Year Ended Period Ended Year Ended Period Ended Year Ended
October 31, October 31, October 31, October 31, October 31, October 31,
1994(1)(2) 1995(3)(4) 1994(1)(2) 1995(3)(4) 1994(1)(2) 1995(3)(4)
- ------------ ----------- ------------ ----------- ------------ -----------
<S> <C> <C> <C> <C> <C>
$12.35 $ 12.35 $12.35 $ 12.35 $ 12.35 $ 12.36
- --------- --------- --------- --------- ---------- ----------
0.11 0.53 0.12 0.54 0.14 0.58
(0.11) 1.68 (0.12) 1.67 (0.13) 1.71
- --------- --------- --------- --------- ---------- ----------
0.00 2.21 0.00 2.21 0.01 2.29
- --------- --------- --------- --------- ---------- ----------
-- (0.52) -- (0.52) -- (0.53)
-- (0.14) -- (0.14) -- (0.14)
- --------- --------- --------- --------- ---------- ----------
-- (0.66) -- (0.66) -- (0.67)
- --------- --------- --------- --------- ---------- ----------
$12.35 $ 13.90 $12.35 $ 13.90 $ 12.36 $ 13.98
========= ========= ========= ========= ========== ==========
(0.16)% 19.08% (0.16)% 19.06% (0.08)% 19.77%
========= ========= ========= ========= ========== ==========
$ 39 $ 1,031 $ 528 $ 5,450 $393,504 $ 542,619
0.96% 0.99% 0.92% 0.99% 0.36% 0.38%
3.67% 3.75% 4.04% 3.70% 4.65% 4.54%
48% 73% 48% 73% 48% 73%
</TABLE>
53
<PAGE> 54
AMERICAN AADVANTAGE GROWTH AND INCOME FUND
FINANCIAL HIGHLIGHTS
(For a share outstanding throughout the period)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Institutional Class
----------------------------------------------------------
Year Ended October 31,
----------------------------------------------------------
1991 1992(1) 1993 1994(2) 1995(3)
-------- -------- -------- -------- -------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period.................... $ 9.47 $ 12.10 $ 12.79 $ 14.63 $ 14.19
-------- -------- -------- -------- -------
Income from investment operations:
Net investment income................................. 0.42 0.39 0.36 0.43 0.41
Net gains on securities (both realized and
unrealized)......................................... 2.70 0.77 2.21 0.08 2.28
-------- -------- -------- -------- -------
Total from investment operations........................ 3.12 1.16 2.57 0.51 2.69
-------- -------- -------- -------- -------
Less distributions:
Dividends from net investment income.................. (0.49) (0.39) (0.37) (0.41) (0.43)
Distributions from net realized gains on securities... - (0.08) (0.36) (0.54) (0.54)
-------- -------- -------- -------- -------
Total distributions..................................... (0.49) (0.47) (0.73) (0.95) (0.97)
-------- -------- -------- -------- -------
Net asset value, end of period.......................... $ 12.10 $ 12.79 $ 14.63 $ 14.19 $ 15.91
======== ======== ======== ======== =======
Total return (annualized) (5)(6)(7)..................... 33.83% 10.00% 21.49% 3.36% 20.69%
======== ======== ======== ======== =======
Ratios/supplemental data:
Net assets, end of period (in thousands).............. $264,628 $339,739 $477,088 $ 22,737 $71,608
Ratios to average net assets (annualized) (8)(9)(10):
Expenses............................................ 0.37% 0.36% 0.34% 0.33% 0.62%
Net investment income............................... 4.19% 3.57% 3.12% 3.28% 2.84%
Portfolio turnover rate............................... 52% 35% 30% 23% 26%
</TABLE>
- ---------------
(1) The assets of the Growth and Income Fund previously managed by Atlanta
Capital Management were transferred to GSB Investment Management , Inc. as
of the close of business on December 5, 1991.
(2) Average shares outstanding for the period rather than end of period shares
were used to compute net investment income per share.
(3) Class expenses per share were subtracted from net investment income per
share for the Fund before class expenses to determine net investment income
per share.
(4) The Mileage, PlanAhead and AMR Classes commenced active operations on
August 1, 1994.
(5) Total return is calculated assuming an initial investment is made at the
net asset value last calculated on the business day before the first day of
each period reported, reinvestment of all dividends and capital gains
distributions on the payable date, accrual for the maximum shareholder
services fee of .30% (for periods prior to August 1, 1994) and a sale at
the net asset value on the last day of each period reported.
(6) Total returns for the Mileage, PlanAhead and AMR Classes for the periods
ended October 31, 1994 reflect Institutional Class returns from November 1,
1993 through July 31, 1994 and returns of the applicable class for the
period August 1, 1994 (commencement of operations of the new classes)
through October 31, 1994. Due to the different expense structures between
the classes, total returns would vary from the results shown had the
classes been in operation for the entire year.
(7) Total returns for the Mileage and PlanAhead Classes exclude fees waived by
the Manager. The effect on total returns was immaterial for the Mileage
Class for the period ended October 31, 1994 and was immaterial for the
PlanAhead Class for the period ended October 31, 1994 and for the year
ended October 31, 1995. Had the Mileage Class paid such fees during the
year ended October 31, 1995, annualized total returns would have been
20.28%.
(8) Effective August 1, 1994, expenses include administrative services fees
paid by the fund to the Manager. Prior to that date, expenses exclude
shareholder services fees paid directly by shareholders to the Manager,
which amounted to less than $.01 per share in each period on an annualized
basis.
(9) The method of determining average net assets was changed from a monthly
average to a daily average starting with the periods ended October 31,
1994.
(10) Operating results of the Mileage and PlanAhead Classes exclude fees waived
by the Manager. Had the Mileage Class paid such fees, the ratio of expenses
and net investment income to average net assets would have been 1.06% and
1.99%, respectively, for the period ended October 31, 1994, and 1.10% and
2.34%, respectively, for the year ended October 31, 1995. Had the PlanAhead
Class paid such fees the ratios would have been 1.05% and 1.40%,
respectively, for the period ended October 31, 1994, and 1.08% and 2.14%,
respectively, for the year ended October 31, 1995.
54
<PAGE> 55
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Mileage Class PlanAhead Class AMR Class
- -------------------------- -------------------------- ---------------------------
Period Ended Year Ended Period Ended Year Ended Period Ended Year Ended
October 31, October 31, October 31, October 31, October 31, October 31,
1994(2)(4) 1995(3) 1994(2)(4) 1995(3) 1994(2)(4) 1995(3)
- ------------ ---------- ------------ ---------- ------------ ----------
<S> <C> <C> <C> <C> <C>
$13.99 $14.17 $13.99 $14.17 $ 13.99 $ 14.20
- --------- -------- --------- -------- ---------- ---------
0.07 0.38 0.05 0.40 0.11 0.44
0.11 2.26 0.13 2.22 0.10 2.30
- --------- -------- --------- -------- ---------- ---------
0.18 2.64 0.18 2.62 0.21 2.74
- --------- -------- --------- -------- ---------- ---------
- (0.43) - (0.44) - (0.45)
- (0.54) - (0.54) - (0.54)
- --------- -------- --------- -------- ---------- ---------
- (0.97) - (0.98) - (0.99)
- --------- -------- --------- -------- ---------- ---------
$14.17 $15.84 $14.17 $15.81 $ 14.20 $ 15.95
========= ======== ========= ======== ========== =========
3.21% 20.36% 3.21% 20.14% 3.43% 21.03%
========= ======== ========= ======== ========== =========
$ 149 $2,201 $ 56 $4,821 $505,892 $706,884
0.96% 0.99% 0.95% 0.99% 0.37% 0.38%
2.09% 2.45% 1.50% 2.23% 3.18% 3.20%
23% 26% 23% 26% 23% 26%
</TABLE>
55
<PAGE> 56
AMERICAN AADVANTAGE INTERNATIONAL EQUITY FUND
FINANCIAL HIGHLIGHTS
(For a share outstanding throughout the period)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Institutional Class
-----------------------------------------------------------------
Period Ended Year Ended October 31,
October 31, ---------------------------------------------
1991(1) 1992 1993(2) 1994(3)(4) 1995(6)
------------- ------- ------- ---------- -------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period.............. $ 10.00 $ 10.13 $ 8.93 $ 12.07 $ 12.87
---------- ------- ------- --------- -------
Income from investment operations:
Net investment income........................... - 0.12 0.17 0.32 0.27
Net gains (losses) on securities (both realized
and unrealized)............................... 0.13 (1.31) 3.09 1.10 0.68
---------- ------- ------- --------- -------
Total from investment operations.................. 0.13 (1.19) 3.26 1.42 0.95
---------- ------- ------- --------- -------
Less distributions:
Dividends from net investment income............ - (0.01) (0.12) (0.17) (0.21)
Distributions from net realized gains on
securities.................................... - - - (0.45) (0.32)
---------- ------- ------- --------- -------
Total distributions............................... - (0.01) (0.12) (0.62) (0.53)
---------- ------- ------- --------- -------
Net asset value, end of period.................... $ 10.13 $ 8.93 $ 12.07 $ 12.87 $ 13.29
========== ======= ======= ========= =======
Total return (annualized)(7)(8)................... 5.69% (12.07)% 36.56% 11.77% 7.90%
========== ======= ======= ========= =======
Ratios/supplemental data:
Net assets, end of period (in thousands)........ $10,536 $38,837 $66,652 $ 23,115 $25,757
Ratios to average net assets
(annualized)(9)(10):
Expenses...................................... 1.90%(11) 1.17% 0.78% 0.61% 0.85%
Net investment income......................... 0.38%(11) 2.04% 2.00% 2.74% 2.37%
Portfolio turnover rate......................... 2% 21% 61% 37% 21%
</TABLE>
- ---------------
(1) The Institutional Class of the International Equity Fund commenced active
operations on August 7, 1991.
(2) HD International Limited was replaced by Hotchkis and Wiley as an
investment adviser to the International Equity Fund as of the close of
business on May 21, 1993.
(3) Morgan Stanley Asset Management Inc. was added as an investment adviser to
the International Equity Fund as of August 1, 1994.
(4) Average shares outstanding for the period rather than end of period shares
were used to compute net investment income per share.
(5) The Mileage, PlanAhead and AMR Classes commenced active operations on
August 1, 1994.
(6) Class expenses per share were subtracted from net investment income per
share for the Fund before class expenses to determine net investment income
per share.
(7) Total return is calculated assuming an initial investment is made at the
net asset value last calculated on the business day before the first day of
each period reported, reinvestment of all dividends and capital gains
distributions on the payable date, accrual for the maximum shareholder
services fee of .30% (for periods prior to August 1, 1994) and a sale at
the net asset value on the last day of each period reported.
(8) Total returns for the Mileage, PlanAhead and AMR Classes for the periods
ended October 31, 1994 reflect Institutional Class returns from November 1,
1993 through July 31, 1994 and returns of the applicable class for the
period August 1, 1994 (commencement of operations of the new classes)
through October 31, 1994. Due to the different expense structures between
the classes, total returns would vary from the results shown had the
classes been in operation for the entire year.
(9) Effective August 1, 1994, expenses include administrative services fees
paid by the Fund to the Manager. Prior to that date, expenses exclude
shareholder services fees paid directly by shareholders to the Manager.
Such fees amounted to less than $.04 per share in each period on an
annualized basis and were waived by the Manager for the period ended
October 31, 1991.
(10) The method of determining average net assets was changed from a monthly
average to a daily average starting with the periods ended October 31,
1994.
(11) Estimated based on expected annual expenses and actual average net assets.
56
<PAGE> 57
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Mileage Class PlanAhead Class AMR Class
- ---------------------------- ---------------------------- -----------------------------
Period Ended Year Ended Period Ended Year Ended Period Ended Year Ended
October 31, October 31, October 31, October 31, October 31, October 31,
1994(3)(4)(5) 1995(6) 1994(3)(4)(5) 1995(6) 1994(3)(4)(5) 1995(6)
- ------------- ----------- ------------- ----------- ------------- -----------
<S> <C> <C> <C> <C> <C>
$ 12.61 $ 12.85 $ 12.61 $ 12.85 $ 12.61 $ 12.87
- ---------- --------- ---------- --------- ----------- ----------
0.03 0.22 0.06 0.24 0.05 0.30
0.21 0.66 0.18 0.64 0.21 0.68
- ---------- --------- ---------- --------- ----------- ----------
0.24 0.88 0.24 0.88 0.26 0.98
- ---------- --------- ---------- --------- ----------- ----------
- (0.21) - (0.21) - (0.22)
- (0.32) - (0.32) - (0.32)
- ---------- --------- ---------- --------- ----------- ----------
- (0.53) - (0.53) - (0.54)
- ---------- --------- ---------- --------- ----------- ----------
$ 12.85 $ 13.20 $ 12.85 $ 13.20 $ 12.87 $ 13.31
========== ========= ========== ========= =========== ==========
11.60% 7.35% 11.60% 7.37% 11.77% 8.18%
========== ========= ========== ========= =========== ==========
$ 207 $ 1,255 $ 375 $ 1,456 $ 165,524 $ 227,939
1.31% 1.33% 1.25% 1.33% 0.63% 0.60%
0.88% 1.99% 1.86% 2.08% 1.41% 2.65%
37% 21% 37% 21% 37% 21%
</TABLE>
57
<PAGE> 58
AMERICAN AADVANTAGE LIMITED-TERM INCOME FUND
FINANCIAL HIGHLIGHTS
(For a share outstanding throughout the period)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Institutional Class
----------------------------------------------------------------
Year Ended October 31,
----------------------------------------------------------------
1991(1) 1992 1993 1994(2) 1995
-------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period.............. $ 9.76 $ 10.07 $ 10.13 $ 10.23 $ 9.67
-------- -------- -------- -------- --------
Income from investment operations:
Net investment income........................... 0.83 0.75 0.58 0.52 0.62
Net gains (losses) on securities (both realized
and unrealized)............................... 0.31 0.06 0.15 (0.46) 0.15
-------- -------- -------- -------- --------
Total from investment operations.................. 1.14 0.81 0.73 0.06 0.77
-------- -------- -------- -------- --------
Less distributions:
Dividends from net investment income............ (0.83) (0.75) (0.58) (0.52) (0.62)
Distributions from net realized gains on
securities.................................... - - (0.05) (0.10) -
-------- -------- -------- -------- --------
Total distributions............................... (0.83) (0.75) (0.63) (0.62) (0.62)
-------- -------- -------- -------- --------
Net asset value, end of period.................... $ 10.07 $ 10.13 $ 10.23 $ 9.67 $ 9.82
======== ======== ======== ======== ========
Total return (annualized)(4)(5)(6)................ 11.87% 7.94% 7.20% 0.42% 8.18%
======== ======== ======== ======== ========
Ratios/supplemental data:
Net assets, end of period (in thousands)........ $141,629 $209,928 $238,874 $112,141 $137,293
Ratios to average net assets
(annualized)(7)(8)(9):
Expenses...................................... 0.35% 0.27% 0.26% 0.31% 0.60%
Net investment income......................... 8.42% 7.40% 5.76% 5.26% 6.36%
Portfolio turnover rate......................... 165% 133% 176% 94% 183%
</TABLE>
- ---------------
(1) AMR Investment Services, Inc. began portfolio management of the Limited-Term
Income Fund on March 1, 1991 replacing Brown Brothers, Harriman & Co. and
Barrow, Hanley, Mewhinney & Strauss, Inc.
(2) Average shares outstanding for the period rather than end of period shares
were used to compute net investment income per share.
(3) The Mileage, PlanAhead and AMR Classes commenced active operations on August
1, 1994.
(4) Total return is calculated assuming an initial investment is made at the net
asset value last calculated on the business day before the first day of each
period reported, reinvestment of all dividends and capital gains
distributions on the payable date, accrual for the maximum shareholder
services fee of .30% (for periods prior to August 1, 1994) and a sale at the
net asset value on the last day of each period reported.
(5) Total returns for the Mileage, PlanAhead and AMR Classes for the periods
ended October 31, 1994 reflect Institutional Class returns from November 1,
1993 through July 31, 1994 and returns of the applicable class for the
period August 1, 1994 (commencement of operations of the new classes)
through October 31, 1994. Due to the different expense structures between
the classes, total returns would vary from the results shown had the classes
been in operation for the entire year.
(6) Total returns for the Mileage and PlanAhead Classes exclude fees waived by
the Manager. Had the Fund paid such fees, total return for each class would
have been .41% for the period ended October 31, 1994, and 7.55% and 7.56%
for the year ended October 31, 1995 for the Mileage Class and PlanAhead
Class, respectively.
(7) Effective August 1, 1994, expenses include administrative services fees paid
by the Fund to the Manager. Prior to that date, expenses exclude shareholder
services fees paid directly by shareholders to the Manager. Such fees
amounted to less than $.03 per share in each period on an annualized basis.
(8) The method of determining average net assets was changed from a monthly
average to a daily average starting with the periods ended October 31, 1994.
(9) Operating results of the Mileage and PlanAhead Classes exclude fees waived
by the Manager. Had the Mileage Class paid such fees, the ratio of expenses
and net investment income to average net assets would have been 1.02% and
5.01%, respectively, for the period ended October 31, 1994, and 1.07% and
5.86%, respectively, for the year ended October 31, 1995. Had the PlanAhead
Class paid such fees the ratios would have been 1.00% and 4.89%,
respectively, for the period ended October 31, 1994, and 1.06% and 5.93%,
respectively, for the year ended October 31, 1995.
58
<PAGE> 59
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Mileage Class PlanAhead Class AMR Class
- --------------------------- --------------------------- ----------------------------
Period Ended Year Ended Period Ended Year Ended Period Ended Year Ended
October 31, October 31, October 31, October 31, October 31, October 31,
1994(2)(3) 1995 1994(2)(3) 1995 1994(2)(3) 1995
- ------------ ----------- ------------ ----------- ------------ -----------
<S> <C> <C> <C> <C> <C>
$ 9.78 $ 9.68 $ 9.78 $ 9.68 $ 9.78 $ 9.68
- --------- --------- --------- --------- ---------- ---------
0.13 0.59 0.13 0.59 0.14 0.64
(0.10) 0.14 (0.10) 0.14 (0.10) 0.13
- --------- --------- --------- --------- ---------- ---------
0.03 0.73 0.03 0.73 0.04 0.77
- --------- --------- --------- --------- ---------- ---------
(0.13) (0.59) (0.13) (0.59) (0.14) (0.64)
- - - - - -
- --------- --------- --------- --------- ---------- ---------
(0.13) (0.59) (0.13) (0.59) (0.14) (0.64)
- --------- --------- --------- --------- ---------- ---------
$ 9.68 $ 9.82 $ 9.68 $ 9.82 $ 9.68 $ 9.81
========= ========= ========= ========= ========== =========
0.45% 7.83% 0.45% 7.83% 0.59% 8.22%
========= ========= ========= ========= ========== =========
$ 149 $ 582 $ 403 $ 1,576 $ 53,445 $64,595
0.82% 0.83% 0.79% 0.83% 0.33% 0.36%
5.21% 6.10% 5.10% 6.16% 5.77% 6.60%
94% 183% 94% 183% 94% 183%
</TABLE>
59
<PAGE> 60
AMERICAN AADVANTAGE MONEY MARKET FUND
FINANCIAL HIGHLIGHTS
(For a share outstanding throughout the period)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Institutional Class
----------------------------------------------------------------
Year Ended October 31,
----------------------------------------------------------------
1991 1992 1993 1994(1) 1995
-------- ---------- ---------- ---------- ----------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period............... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
-------- ---------- ---------- ---------- ----------
Net investment income............................ 0.07 0.04 0.03 0.04 0.06
Less dividends from net investment income........ (0.07) (0.04) (0.03) (0.04) (0.06)
-------- ---------- ---------- ---------- ----------
Net asset value, end of period..................... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
======== ========== ========== ========== ==========
Total return (annualized).......................... 7.18% 4.41% 3.31% 3.85% 5.96%
======== ========== ========== ========== ==========
Ratios/supplemental data:
Net assets, end of period
(in thousands)................................. $715,280 $2,223,829 $2,882,947 $1,893,144 $1,206,041
Ratios to average net assets (annualized)(4)(5):
Expenses....................................... 0.24% 0.26% 0.23% 0.21% 0.23%
Net investment income.......................... 6.93% 4.06% 3.23% 3.63% 5.79%
</TABLE>
- ---------------
(1) Average shares outstanding for the period rather than end of period shares
were used to compute net investment income per share.
(2) The PlanAhead Class commenced active operations on August 1, 1994.
(3) Total return for the PlanAhead Class for the period ended October 31, 1994
reflects Institutional Class returns from November 1, 1993 through July 31,
1994 and returns of the PlanAhead Class from August 1, 1994 (commencement of
operations) through October 31, 1994. Due to the different expense
structures between the classes, total return would vary from the results
shown had the PlanAhead Class been in operation for the entire year.
(4) Effective October 1, 1990, expenses include administrative services fees
paid by the Fund to the Manager. Prior to that date, expenses exclude
shareholder services fees paid directly by shareholders to the Manager,
which amounted to less than $.01 per share in each period on an annualized
basis.
(5) The method of determining average net assets was changed from a monthly
average to a daily average starting with the year ended October 31, 1992.
60
<PAGE> 61
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Mileage Class
- ----------------------------------------- PlanAhead Class
----------------------------
Year Ended October 31, Period Ended Year Ended
- ----------------------------------------- October 31, October 31,
1992 1993 1994(1) 1995 1994(1)(2) 1995
- ------- ------- ------- -------- ------------ -----------
<S> <C> <C> <C> <C> <C>
$ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
- ------- ------- ------- -------- --------- ---------
0.04 0.03 0.04 0.05 0.01 0.05
(0.04) (0.03) (0.04) (0.05) (0.01) (0.05)
- ------- ------- ------- -------- --------- ---------
$ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
======= ======= ======= ======== ========= =========
4.15% 3.05% 3.56% 5.61% 3.73%(3) 5.60%
======= ======= ======= ======== ========= =========
$15,952 $30,625 $57,886 $100,286 $ 25 $41,989
0.51% 0.48% 0.50 % 0.57% 0.70% 0.55%
3.76% 2.99% 3.58 % 5.48% 4.42% 5.56%
</TABLE>
61
<PAGE> 62
AMERICAN AADVANTAGE MUNICIPAL MONEY MARKET FUND
FINANCIAL HIGHLIGHTS
(For a share outstanding throughout the period)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Institutional Class Mileage Class PlanAhead Class
-------------------------- -------------------------- --------------------------
Period Ended Year Ended Period Ended Year Ended Period Ended Year Ended
October 31, October 31, October 31, October 31, October 31, October 31,
1994(1) 1995 1994(1) 1995 1994(1) 1995
------------ ----------- ------------ ----------- ------------ -----------
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of
period........................... $ 1.00 $1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
------ ----- ------- ------- ------ ------
Net investment income............ 0.02 0.04 0.02 0.03 0.01 0.03
Less dividends from net
investment income.............. (0.02) (0.04) (0.02) (0.03) (0.01) (0.03)
------ ----- ------- ------- ------ ------
Net asset value, end of period..... $ 1.00 $1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
====== ===== ======= ======= ====== ======
Total return (annualized)(2)(3).... 2.44% 3.75% 2.16% 3.40% 2.35% 3.39%
====== ===== ======= ======= ====== ======
Ratios/supplemental data:
Net assets, end of period (in
thousands)..................... $9,736 $ 7 $10,713 $19,438 $ 0 $ 129
Ratios to average net assets
(annualized)(4):
Expenses....................... 0.30% 0.35% 0.63% 0.71% 0.77% 0.72%
Net investment income.......... 2.38% 3.70% 2.23% 3.33% 2.49% 3.32%
</TABLE>
- ---------------
(1) The Institutional Class and Mileage Class commenced active operations on
November 10, 1993. The PlanAhead Class commenced active operations on August
1, 1994.
(2) Total returns for each class of the Municipal Money Market Fund exclude
management and administrative services fees waived by the Manager. Had the
Fund paid such fees during the period ended October 31, 1994 and during the
year ended October 31, 1995, annualized total returns would have been 2.24%
and 3.54%, respectively for the Institutional Class, 1.95% and 3.19%,
respectively, for the Mileage Class and 2.15% and 3.19%, respectively, for
the PlanAhead Class.
(3) Total return for the PlanAhead Class for the period ended October 31, 1994
reflects Institutional Class returns from November 10, 1993 through July 31,
1994 and returns of the PlanAhead Class from August 1, 1994 (commencement of
operations) through October 31, 1994. Due to the different expense
structures between the classes, total return would vary from the results
shown had the PlanAhead Class been in operation for the entire year.
(4) Operating results of each class of the Municipal Money Market Fund exclude
fees waived by the Manager. Had the Fund paid such fees, the ratio of
expenses and net investment income to average net assets for the
Institutional Class would have been .50% and 2.18%, respectively, for the
period ended October 31, 1994, and .55% and 3.50%, respectively, for the
year ended October 31, 1995. The ratios for the Mileage Class would have
been .83% and 2.03%, respectively, for the period ended October 31, 1994,
and .91% and 3.13%, respectively, for the year ended October 31, 1995. The
ratios for the PlanAhead Class would have been .97% and 2.29%, respectively
for the period ended October 31, 1994, and .92% and 3.12%, respectively, for
the year ended October 31, 1995.
62
<PAGE> 63
AMERICAN AADVANTAGE U.S. TREASURY MONEY MARKET FUND
FINANCIAL HIGHLIGHTS
(For a share outstanding throughout the period)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Institutional Class Mileage Class PlanAhead Class
---------------------------------------------- ------------------------- --------------------------
Period Period Period
Ended Year Ended October 31, Ended Year Ended Ended Year Ended
October 31, ------------------------------ October 31, October 31, October 31, October 31,
1992(1) 1993 1994(2) 1995 1994(2) 1995 1994(1)(2) 1995
----------- -------- ------- ------- ----------- ----------- ----------- -----------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Net asset value,
beginning of period.... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $1.00 $1.00
Net investment
income............... 0.02 0.03 0.04 0.06 0.03 0.05 0.01 0.05
Less dividends from net
investment income.... (0.02) (0.03) (0.04) (0.06) (0.03) (0.05) (0.01) (0.05)
--------- -------- ------- ------- --------- --------- -------- ---------
Net asset value, end of
period................. $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $1.00 $1.00
========= ======== ======= ======= ========= ========= ======== ========
Total return
(annualized)........... 3.61% 3.07% 3.70% 5.67% 3.42% 5.30% 3.58%(3) 5.19%
========= ======== ======= ======= ========= ========= ======== ========
Ratios/supplemental data:
Net assets, end of
period (in
thousands)........... $ 91,453 $136,813 $67,607 $47,184 $ 6,167 $ 6,972 $ 0 $ 530
Ratios to average net
assets
(annualized)(5):
Expenses............... 0.27%(4) 0.23% 0.25% 0.32% 0.57% 0.71% 0.75% 0.76%
Net investment
income............... 3.46%(4) 2.96% 3.44% 5.49% 3.84% 5.14% 3.94% 5.19%
</TABLE>
- ---------------
(1) The Institutional Class commenced active operations on March 2, 1992. The
PlanAhead Class commenced active operations on August 1, 1994.
(2) Average shares outstanding for the period rather than end of period shares
were used to compute net investment income per share.
(3) Total return for the PlanAhead Class for the period ended October 31, 1994
reflects Institutional Class returns from November 1, 1993 through July 31,
1994 and returns of the PlanAhead Class from August 1, 1994 (commencement of
operations) through October 31, 1994. Due to the different expense
structures between the classes, total return would vary from the results
shown had the PlanAhead Class been in operation for the entire year.
(4) Estimated based on expected annual expenses and actual average net assets.
(5) The method of determining average net assets was changed from a monthly
average to a daily average starting with the period ended October 31, 1994.
63
<PAGE> 64
[AMERICAN
AADVANTAGE FUNDS
LOGO]
-INSTITUTIONAL CLASS-
P.O. Box 619003
Dallas/Fort Worth Airport, Texas
75261-9003
(817) 967-3509
-MILEAGE CLASS-(R)
P.O. Box 4580
Chicago, Illinois 60680-4580
(800) 231-4252
-PLANAHEAD CLASS-(SM)
P.O. Box 4580
Chicago, Illinois 60680-4580
(800) 231-4252
-AMR CLASS-(SM)
P.O Box 619003
Dallas/Fort Worth Airport, Texas
75261-9003
(817) 967-3509
[LOGO]
[AADVANTAGE
FUNDS
LOGO]
BALANCED FUND
GROWTH AND INCOME FUND
INTERNATIONAL EQUITY FUND
LIMITED-TERM INCOME FUND
MONEY MARKET FUND
MUNICIPAL MONEY MARKET FUND
U.S. TREASURY MONEY MARKET FUND
