<PAGE> 1
------------------
PLATINUM CLASS(SM)
------------------
[AMERICAN ADVANTAGE LOGO]
PROSPECTUS
MARCH 1, 2000
AMERICAN
AADVANTAGE FUNDS(R)
AMERICAN AADVANTAGE
MILEAGE FUNDS(R)
MANAGED BY AMR INVESTMENT SERVICES, INC.
[GRAPHIC]
o Money Market Fund
o Municipal Money
Market Fund
o U.S. Government Money
Market Fund
o Money Market Mileage Fund
o Municipal Money Market
Mileage Fund
o U.S. Government Money
Market Mileage Fund
Available through:
TD WATERHOUSE
The Securities and Exchange Commission does not guarantee that the information
in this Prospectus or any other mutual fund's prospectus is accurate or
complete, nor does it judge the investment merit of these Funds. To state
otherwise is a criminal offense.
<PAGE> 2
TABLE OF CONTENTS
- -----------------
<TABLE>
<S> <C>
About the Funds
Overview.................................................... 3
Investment Objective........................................ 4
Principal Strategies........................................ 4
Risk Factors................................................ 6
Investor Profile............................................ 7
Historical Performance...................................... 7
Fees and Expenses........................................... 14
Examples.................................................... 15
The Manager................................................. 15
Valuation of Shares......................................... 16
About Your Investment
Purchase and Redemption of Shares........................... 16
Distributions and Taxes..................................... 20
AAdvantage(R) Miles......................................... 21
Additional Information
Distribution of Trust Shares................................ 23
Master-Feeder Structure..................................... 23
Financial Highlights........................................ 24
</TABLE>
- --------------------------------------------------------------------------------
About the Funds 2 Prospectus
<PAGE> 3
ABOUT THE FUNDS
- ---------------
<TABLE>
<S> <C>
Overview The American AAdvantage Funds (the "AAdvantage
- -------- Funds") and the American AAdvantage Mileage
Funds (the "Mileage Funds") are managed by AMR
Investment Services, Inc. (the "Manager"), a
wholly owned subsidiary of AMR Corporation.
The AAdvantage Funds and Mileage Funds
(collectively, the "Funds") operate under a
master-feeder structure. This means that each
Fund seeks its investment objective by investing
all of its investable assets in a corresponding
Portfolio of the AMR Investment Services Trust
("AMR Trust") that has a similar name and
identical investment objective. Throughout this
Prospectus, statements regarding investments by
a Fund refer to investments made by its
corresponding Portfolio. For easier reading, the
term "Fund" is used throughout the Prospectus to
refer to either a Fund or its Portfolio, unless
stated otherwise. See "Master-Feeder Structure".
Each shareholder of the Mileage Funds will
receive American Airlines(R) AAdvantage(R)
travel awards program ("AAdvantage") miles.(1)
AAdvantage miles will be posted monthly to each
shareholder's AAdvantage account at an annual
rate of one mile for every $10 invested in the
Fund. See "AAdvantage Miles".
</TABLE>
- ---------------
(1) American Airlines and AAdvantage are registered trademarks of American
Airlines, Inc.
- --------------------------------------------------------------------------------
Prospectus 3 About the Funds
<PAGE> 4
Money Market Funds ("Money Market Funds")
- -----------------------------------------
American AAdvantage Money Market Fund
American AAdvantage Money Market Mileage Fund
Municipal Money Market Funds ("Municipal Funds")
- ------------------------------------------------
American AAdvantage Municipal Money Market Fund
American AAdvantage Municipal Money Market Mileage Fund
U.S. Government Money Market Funds ("Government Funds")
- -------------------------------------------------------
American AAdvantage U.S. Government Money Market Fund
American AAdvantage U.S. Government Money Market Mileage Fund
- --------------------------------------------------------------------------------
<TABLE>
<S> <C>
INVESTMENT OBJECTIVE Current income, liquidity and the maintenance of
- -------------------- a stable price of $1.00 per share.
(All Funds)
PRINCIPAL STRATEGIES Each Money Market Fund invests exclusively in
- -------------------- high quality variable or fixed rate, U.S.
(Money Market Funds) dollar-denominated short-term money market
instruments. These securities may include
obligations of the U.S. Government, its agencies
and instrumentalities; corporate debt
securities, such as commercial paper, master
demand notes, loan participation interests,
medium-term notes and funding agreements;
Yankeedollar and Eurodollar bank certificates of
deposit, time deposits, and bankers'
acceptances; asset-backed securities; and
repurchase agreements involving the foregoing
obligations.
Each Fund will only buy securities with the
following credit qualities:
- rated in the highest short-term categories by
two rating organizations, such as "A-1" by
Standard & Poor's Corporation and "P-1" by
Moody's Investors Service, Inc., at the time
of purchase,
- rated in the highest short-term category by
one rating organization if the securities are
rated only by one rating organization, or
- unrated securities that are determined to be
of equivalent quality by the Manager pursuant
to
</TABLE>
- --------------------------------------------------------------------------------
About the Funds 4 Prospectus
<PAGE> 5
<TABLE>
<S> <C>
guidelines approved by each Fund's Board of
Trustees.
Each Fund invests more than 25% of its total
assets in obligations issued by the banking
industry. However, for temporary defensive
purposes when the Manager believes that
maintaining this concentration may be
inconsistent with the best interests of
shareholders, a Fund may not maintain this
concentration.
Securities purchased by each Fund generally have
remaining maturities of 397 days or less,
although instruments subject to repurchase
agreements and certain variable and floating
rate obligations may bear longer final
maturities. The average dollar-weighted maturity
of each Fund will not exceed 90 days.
(Municipal Funds) Under normal market conditions, each Municipal
Fund invests at least 80% of its net assets in
securities whose interest income is exempt from
federal income tax. These securities may be
issued by or on behalf of the governments of
U.S. states, counties, cities, towns,
territories, or public authorities. All
securities purchased by each Fund will be
guaranteed by the U.S. Government, its agencies,
or instrumentalities; secured by irrevocable
letters of credit issued by qualified banks; or
guaranteed by one or more municipal bond
insurance policies.
Each Fund will only buy securities with the
following credit qualities:
- rated in the highest short-term categories by
two rating organizations, such as "A-1" by
Standard & Poor's and "P-1" by Moody's
Investors Service, Inc., at the time of
purchase,
- rated in the highest short-term category by
one rating organization if the securities are
rated only by one rating organization, or
</TABLE>
- --------------------------------------------------------------------------------
Prospectus 5 About the Funds
<PAGE> 6
<TABLE>
<S> <C>
- unrated securities that are determined to be
of equivalent quality by the Manager pursuant
to guidelines approved by each Fund's Board of
Trustees.
Securities purchased by each Fund generally have
remaining maturities of 397 days or less,
although instruments subject to repurchase
agreements and certain variable and floating
rate obligations may bear longer final
maturities. The average dollar-weighted maturity
of each Fund will not exceed 90 days.
(Government Funds) Each Government Fund invests exclusively in
obligations issued or guaranteed by the U.S.
Government, its agencies or instrumentalities
and repurchase agreements that are
collateralized by such obligations. Some of
these securities are not backed by the full
faith and credit of the U.S. Government. U.S.
Government securities include direct obligations
of the U.S. Treasury (such as Treasury bills,
Treasury notes and Treasury bonds).
Securities purchased by each Fund generally have
remaining maturities of 397 days or less,
although instruments subject to repurchase
agreements and certain variable and floating
rate obligations may bear longer final
maturities. The average dollar-weighted maturity
of each Fund will not exceed 90 days.
RISK FACTORS - The yield paid by each Fund is subject to
- ------------ changes in interest rates. As a result, there
(All Funds) is risk that a decline in short-term interest
rates would lower its yield and the overall
return on your investment.
- Although each Fund seeks to preserve the value
of your investment at $1.00 per share, it is
possible to lose money by investing in the
Fund.
Your investment in a Fund is not insured or
guaranteed by the U.S. Government or any
financial or government institution.
</TABLE>
- --------------------------------------------------------------------------------
About the Funds 6 Prospectus
<PAGE> 7
<TABLE>
<S> <C>
(Money Market and - As with any money market fund, there is the
Municipal Funds) risk that the issuers or guarantors of
securities owned by each Fund will default on
the payment of principal or interest or the
obligation to repurchase securities from each
Fund.
INVESTOR PROFILE All of the Funds may be suitable for investors
- ---------------- who:
(All Funds)
- seek the preservation of capital and to avoid
fluctuations in principal
- desire regular, monthly income from a highly
liquid investment
- require a short-term vehicle for cash when
making long-term investment decisions
- seek a rate of return that is potentially
higher than certificates of deposit or savings
accounts
(Municipal Funds) The Municipal Funds may be suitable for
investors who:
- desire regular, monthly income that is
generally exempt from Federal income tax
- seek an after-tax rate of return that is
potentially higher than certificates of
deposit or savings accounts
(Mileage Funds) The Mileage Funds may be suitable for investors
who desire to receive miles in the American
Airlines AAdvantage(R) program.
HISTORICAL PERFORMANCE The bar charts and tables below provide an
- ---------------------- indication of risk by showing how each Fund's
performance has varied from year to year. Past
performance is not necessarily indicative of how
each Fund will perform in the future. You may
call 1-800-388-3344 to obtain each Fund's
current seven-day yield.
</TABLE>
- --------------------------------------------------------------------------------
Prospectus 7 About the Funds
<PAGE> 8
<TABLE>
<S> <C>
(American AAdvantage The Platinum Class of the Fund began offering
Money Market Fund(sm)) its shares on November 7, 1995. However, another
class of shares of the Fund not offered in this
prospectus has been offered since September 1,
1987. In the chart and table below, performance
results before November 7, 1995 are for the
older class. Because the other class had lower
expenses, its performance was better than the
Platinum Class of the Fund would have realized
in the same period.
</TABLE>
TOTAL RETURN FOR THE CALENDAR YEAR ENDED 12/31 OF EACH YEAR
<TABLE>
<S> <C>
90..................................................................... 8.40%
91..................................................................... 6.77%
92..................................................................... 4.02%
93..................................................................... 3.28%
94..................................................................... 4.22%
95..................................................................... 5.93%
96..................................................................... 4.77%
97..................................................................... 4.90%
98..................................................................... 4.82%
99..................................................................... 4.41%
</TABLE>
<TABLE>
<S> <C>
Highest Quarterly Return: 2.06%
(1/1/90 through 12/31/99) (2nd Quarter 1990)
Lowest Quarterly Return: 0.80%
(1/1/90 through 12/31/99) (2nd & 4th Quarter 1993,
1st Quarter 1994)
</TABLE>
<TABLE>
<CAPTION>
AVERAGE ANNUAL TOTAL
RETURN
---------------------------
AS OF 12/31/99
---------------------------
1 YEAR 5 YEARS 10 YEARS
------ ------- --------
<S> <C> <C> <C>
Money Market Fund........................................... 4.41% 4.96% 5.14%
</TABLE>
<TABLE>
<S> <C>
(American AAdvantage The Fund's performance, as shown in the chart
Money Market Mileage and table below, is derived from a combination
Fund(sm)) of the Fund's performance and that of another
fund (the "Companion Fund") not offered in this
prospectus. The Companion Fund has been managed
by the Manager since its inception on September
1, 1987. Like the Fund, the Companion Fund
invests all of its investable assets in a
corresponding Portfolio of the AMR Trust. The
performance results from inception through
October 31, 1995 are those of the Companion
Fund. (Results through October 31, 1991 are for
the Companion Fund's Institutional Class of
shares and from November 1, 1991 through October
31, 1995 are for the Companion Fund's Mileage
Class of shares.) The Fund began offering it
shares on November 1, 1995. Performance results
shown below from that date through January 28,
1996 are for the initial class of Fund shares.
The Platinum Class of the Fund began offering
its shares
</TABLE>
- --------------------------------------------------------------------------------
About the Funds 8 Prospectus
<PAGE> 9
<TABLE>
<S> <C>
on January 29, 1996. Thus, performance results
from that date through December 31, 1999 are for
the Platinum Class of Fund shares. Because the
Companion Fund and the Fund's initial class had
lower expenses, their performance was better
than the Fund would have realized in the same
period.
</TABLE>
TOTAL RETURN FOR THE CALENDAR YEAR ENDED 12/31 OF EACH YEAR
<TABLE>
<S> <C>
90................................................................... 8.40%
91................................................................... 6.77%
92................................................................... 4.02%
93................................................................... 3.28%
94................................................................... 4.22%
95................................................................... 5.93%
96................................................................... 4.56%
97................................................................... 4.74%
98................................................................... 4.67%
99................................................................... 4.30%
</TABLE>
<TABLE>
<S> <C>
Highest Quarterly Return: 2.06%
(1/1/90 through 12/31/99) (2nd Quarter 1990)
Lowest Quarterly Return: 0.74%
(1/1/90 through 12/31/99) (2nd & 4th Quarter 1993,
1st Quarter 1994)
</TABLE>
<TABLE>
<CAPTION>
AVERAGE ANNUAL TOTAL
RETURN
---------------------------
AS OF 12/31/99
---------------------------
1 YEAR 5 YEARS 10 YEARS
------ ------- --------
<S> <C> <C> <C>
Money Market Mileage Fund................................... 4.30% 4.80% 4.97%
</TABLE>
- --------------------------------------------------------------------------------
Prospectus 9 About the Funds
<PAGE> 10
<TABLE>
<S> <C>
(American AAdvantage The Platinum Class of the Fund began offering
Municipal Money Market its shares on November 7, 1995. However, another
Fund(sm)) class of shares of the Fund not offered in this
prospectus has been offered since November 10,
1993. In the chart and table below, performance
results before November 7, 1995 are for the
older class. Because the other class had lower
expenses, its performance was better than the
Platinum Class of the Fund would have realized
in the same period.
</TABLE>
TOTAL RETURN FOR THE CALENDAR YEAR ENDED 12/31 OF EACH YEAR
<TABLE>
<S> <C>
94................................................................... 2.66%
95................................................................... 3.71%
96................................................................... 2.78%
97................................................................... 2.83%
98................................................................... 2.64%
99................................................................... 2.34%
</TABLE>
<TABLE>
<S> <C>
Highest Quarterly Return: 1.00%
(1/1/94 through 12/31/99) (2nd Quarter 1995)
Lowest Quarterly Return: 0.49%
(1/1/94 through 12/31/99) (1st Quarter 1999)
</TABLE>
<TABLE>
<CAPTION>
AVERAGE ANNUAL TOTAL RETURN
----------------------------------
AS OF 12/31/99
----------------------------------
SINCE INCEPTION
1 YEAR 5 YEARS (11/10/93)
------ ------- ---------------
<S> <C> <C> <C>
Municipal Money Market Fund.......................... 2.34% 2.86% 2.81%
</TABLE>
- --------------------------------------------------------------------------------
About the Funds 10 Prospectus
<PAGE> 11
<TABLE>
<S> <C>
(American AAdvantage The Fund's performance, as shown in the chart
Municipal Money Market and table below, is derived from a combination
Mileage Fund(sm)) of the Fund's performance and that of another
fund (the "Companion Fund") not offered in this
prospectus. The Companion Fund has been managed
by the Manager since its inception on November
10, 1993. Like the Fund, the Companion Fund
invests all of its investable assets in a
corresponding Portfolio of the AMR Trust. The
performance results from inception through
October 31, 1995 are those of the Companion
Fund's Mileage Class of shares. The Fund began
offering it shares on November 1, 1995.
Performance results shown below from that date
through October 31, 1999 are for the initial
class of Fund shares. The Platinum Class of the
Fund began offering its shares on November 1,
1999. Thus, performance results from that date
through December 31, 1999 are for the Platinum
Class of Fund shares. Because the Companion Fund
and the Fund's initial class had lower expenses,
their performance was better than the Fund would
have realized in the same period.
</TABLE>
TOTAL RETURN FOR THE CALENDAR YEAR ENDED 12/31 OF EACH YEAR
<TABLE>
<S> <C>
94................................................................... 2.37%
95................................................................... 3.48%
96................................................................... 3.09%
97................................................................... 3.23%
98................................................................... 3.06%
99................................................................... 2.69%
</TABLE>
<TABLE>
<S> <C>
Highest Quarterly Return: 0.91%
(1/1/94 through 12/31/99) (2nd Quarter 1995)
Lowest Quarterly Return: 0.46%
(1/1/94 through 12/31/99) (1st Quarter 1994)
</TABLE>
<TABLE>
<CAPTION>
AVERAGE ANNUAL TOTAL RETURN
-------------------------------
AS OF 12/31/99
-------------------------------
SINCE
INCEPTION
1 YEAR 5 YEARS (11/10/93)
------ ------- ----------
<S> <C> <C> <C>
Municipal Money Market Mileage Fund.................... 2.69% 3.11% 2.96%
</TABLE>
- --------------------------------------------------------------------------------
Prospectus 11 About the Funds
<PAGE> 12
<TABLE>
<S> <C>
(American AAdvantage The Platinum Class of the Fund began offering
U.S. Government Money its shares on November 7, 1995. However, another
Market Fund(sm)) class of shares of the Fund not offered in this
prospectus has been offered since March 2, 1992.
In the chart and table below, performance
results before November 7, 1995 are for the
older class. Because the other class had lower
expenses, its performance was better than the
Platinum Class of the Fund would have realized
in the same period.
</TABLE>
TOTAL RETURN FOR THE CALENDAR YEAR ENDED 12/31 OF EACH YEAR
<TABLE>
<S> <C>
93................................................................... 3.05%
94................................................................... 4.09%
95................................................................... 5.62%
96................................................................... 4.51%
97................................................................... 4.65%
98................................................................... 4.62%
99................................................................... 4.20%
</TABLE>
<TABLE>
<S> <C>
Highest Quarterly Return: 1.43%
(1/1/93 through 12/31/99) (2nd Quarter 1995)
Lowest Quarterly Return: 0.74%
(1/1/93 through 12/31/99) (4th Quarter 1993)
</TABLE>
<TABLE>
<CAPTION>
AVERAGE ANNUAL TOTAL RETURN
----------------------------------
AS OF 12/31/99
----------------------------------
SINCE INCEPTION
1 YEAR 5 YEARS (3/2/92)
------ ------- ---------------
<S> <C> <C> <C>
U.S. Government Money Market Fund................ 4.20% 4.72% 4.30%
</TABLE>
<TABLE>
<S> <C>
(American AAdvantage The Fund's performance, as shown in the chart
U.S. Government Money and table below, is derived from a combination
Market Mileage Fund(sm)) of the Fund's performance and that of another
fund (the "Companion Fund") not offered in this
prospectus. The Companion Fund has been managed
by the Manager since its inception on March 2,
1992. Like the Fund, the Companion Fund invests
all of its investable assets in a corresponding
Portfolio of the AMR Trust. The performance
results from inception through October 31, 1995
are those of the Companion Fund. (Results
through October 31, 1993 are for the Companion
Fund's Institutional Class of shares and from
November 1, 1993 through October 31, 1995 are
for the Companion Fund's Mileage Class of
shares.) The Fund began offering it shares on
November 1, 1995. Performance results shown
below from that date through October 31, 1999
are for the initial class of Fund shares. The
Platinum Class of the Fund began offering its
shares
</TABLE>
- --------------------------------------------------------------------------------
About the Funds 12 Prospectus
<PAGE> 13
<TABLE>
<S> <C>
on November 1, 1999. Thus, performance results
from that date through December 31, 1999 are for
the Platinum Class of Fund shares. Because the
Companion Fund and the Fund's initial class had
lower expenses, their performance was better
than the Fund would have realized in the same
period.
</TABLE>
TOTAL RETURN FOR THE CALENDAR YEAR ENDED 12/31 OF EACH YEAR
<TABLE>
<S> <C>
93................................................................... 3.00%
94................................................................... 3.79%
95................................................................... 5.37%
96................................................................... 4.91%
97................................................................... 5.04%
98................................................................... 5.04%
99................................................................... 4.55%
</TABLE>
<TABLE>
<S> <C>
Highest Quarterly Return: 1.35%
(1/1/93 through 12/31/99) (2nd Quarter 1995)
Lowest Quarterly Return: 0.70%
(1/1/93 through 12/31/99) (4th Quarter 1993,
1st Quarter 1994)
</TABLE>
<TABLE>
<CAPTION>
AVERAGE ANNUAL TOTAL RETURN
-------------------------------
AS OF 12/31/99
-------------------------------
SINCE
INCEPTION
1 YEAR 5 YEARS (3/2/92)
------ ------- ----------
<S> <C> <C> <C>
U.S. Government Money Market Mileage Fund.............. 4.55% 4.98% 4.42%
</TABLE>
- --------------------------------------------------------------------------------
Prospectus 13 About the Funds
<PAGE> 14
FEES AND EXPENSES This table describes the fees and expenses that
- ----------------- you may pay if you buy and hold shares of each
Fund. The expense table and the Examples below
reflect the expenses of each Fund and its
corresponding Portfolio.
<TABLE>
<CAPTION>
U.S.
MUNICIPAL U.S. GOVERNMENT
MONEY MUNICIPAL MONEY GOVERNMENT MONEY
MONEY MARKET MONEY MARKET MONEY MARKET
MARKET MILEAGE MARKET MILEAGE MARKET MILEAGE
------ ------- --------- --------- ---------- ----------
<S> <C> <C> <C> <C> <C> <C>
Management Fees.................................... 0.10% 0.10% 0.10% 0.10% 0.10% 0.10%
Distribution (12b-1) Fees.......................... 0.25% 0.25% 0.25% 0.25% 0.25% 0.25%
Other Expenses..................................... 0.60%(2) 0.75% 0.69%(2) 0.92%(1) 0.64%(2) 0.95%(1)
----- ----- ----- ----- ----- -----
Total Annual Fund Operating Expenses............... 0.95% 1.10% 1.04% 1.27% 0.99% 1.30%
===== ===== ===== ===== ===== =====
Fee Waiver and/or Expense Reimbursement............ -- 0.01%(3) -- 0.17%(4) -- 0.20%(5)
Net Expenses....................................... 0.95% 1.09% 1.04% 1.10% 0.99% 1.10%
</TABLE>
(1) Other Expenses are based on estimates for the current fiscal year.
(2) Other Expenses reflects current fees.
(3) The Manager has contractually agreed to waive a portion of Distribution
Fees for the Money Market Mileage Fund through December 31, 2000 to the
extent that the Fund's Total Annual Fund Operating Expenses exceed 1.09%.
(4) The Manager has contractually agreed to waive a portion of Distribution
Fees for the Municipal Money Market Mileage Fund through December 31, 2000
to the extent that the Fund's Total Annual Fund Operating Expenses exceed
1.10%.
(5) The Manager has contractually agreed to waive a portion of Distribution
Fees for the U.S. Government Money Market Mileage Fund through December
31, 2000 to the extent that the Fund's Total Annual Fund Operating
Expenses exceed 1.10%.
- --------------------------------------------------------------------------------
About the Funds 14 Prospectus
<PAGE> 15
EXAMPLES These examples are intended to help you compare
- -------- the cost of investing in each Fund with the cost
of investing in other mutual funds. The examples
assume that you invest $10,000 in each Fund for
the time periods indicated and then redeem all
of your shares at the end of those periods. The
examples also assume that your investment has a
5% return each year and that each Fund's
operating expenses remain the same. Although
your actual costs may be higher or lower, based
on these assumptions your costs would be:
<TABLE>
<CAPTION>
1 YEAR 3 YEARS 5 YEARS 10 YEARS
------ ------- ------- --------
<S> <C> <C> <C> <C>
Money Market................................ $ 97 $303 $525 $1,166
Money Market Mileage*....................... $111 $349 $605 $1,339
Municipal Money Market*..................... $106 $331 $574 $1,271
Municipal Money Market Mileage*............. $112 $386 $681 $1,519
U.S. Government Money Market................ $101 $315 $547 $1,213
U.S. Government Money Market Mileage*....... $112 $392 $694 $1,550
</TABLE>
* Fee waivers are only guaranteed by the Manager
through December 31, 2000. Therefore, net
expenses are used to calculate the costs in
the first year, and total fund expenses are
used to calculate costs in the remaining nine
years.
THE MANAGER The Funds have retained AMR Investment Services,
- ----------- Inc. to serve as their Manager. The Manager,
located at 4333 Amon Carter Boulevard, Fort
Worth, Texas 76155, is a wholly owned subsidiary
of AMR Corporation, the parent company of
American Airlines, Inc. The Manager was
organized in 1986 to provide investment
management, advisory, administrative and asset
management consulting services. As of December
31, 1999, the Manager had approximately $21.7
billion of assets under management, including
approximately $8.4 billion under active
management and $13.3 billion as named fiduciary
or financial adviser. Of the total,
approximately $15.3 billion of assets are
related to AMR Corporation.
The Manager provides or oversees the provision
of all administrative, investment advisory and
portfolio management services to the Funds. The
Manager
- --------------------------------------------------------------------------------
Prospectus 15 About the Funds
<PAGE> 16
<TABLE>
<S> <C>
develops the investment programs for each Fund
and serves as the sole investment adviser to the
Funds. As compensation for providing management
services, each Fund pays the Manager an
annualized advisory fee that is calculated and
accrued daily, equal to the sum of 0.10% of the
net assets of the Fund.
</TABLE>
<TABLE>
<S> <C>
VALUATION OF SHARES The price of each Fund's shares is based on its
- ------------------- net asset value ("NAV") per share. Each Fund's
NAV is computed by adding total assets,
subtracting all of the Fund's liabilities, and
dividing the result by the total number of
shares outstanding. Securities held by the Funds
are valued in accordance with the amortized cost
method, which is designed to enable the Funds to
maintain a stable NAV of $1.00 per share. Debt
securities (other than short-term securities)
usually are valued on the basis of prices
provided by a pricing service. In some cases,
the price of debt securities is determined using
quotes obtained from brokers.
The NAV of Platinum Class shares will be
determined based on a pro rata allocation of
investment income, expenses and total capital
gains and losses. Each Fund's NAV per share is
determined as of the close of the New York Stock
Exchange ("Exchange"), generally 4:00 p.m.
Eastern time, on each day on which the Exchange
is open for business, with the exception of
Columbus Day and Veterans Day. The Funds are
closed and no NAV is calculated on these days.
</TABLE>
<TABLE>
<S> <C>
ABOUT YOUR INVESTMENT
- -------------------------------------------------------------------------------
PURCHASE AND REDEMPTION OF SHARES
- --------------------------------------------------------------------------------
</TABLE>
<TABLE>
<S> <C>
Eligibility Platinum Class shares are offered on a
continuous basis at net asset value through
selected financial institutions (such as banks
and broker-dealers). Shares of the Mileage Funds
are offered only to individuals and certain
grantor trusts. Qualified retirement plans (i.e.
IRAs, Keogh, profit sharing
</TABLE>
- --------------------------------------------------------------------------------
About Your Investment 16 Prospectus
<PAGE> 17
<TABLE>
<S> <C>
plans) and institutional investors are not
eligible to invest in the Mileage Funds.
</TABLE>
<TABLE>
<S> <C>
Purchase Policies No sales charges are assessed on the purchase or
sale of Fund shares. Shares of the Funds are
offered and purchase orders accepted until the
deadlines listed below on each day on which the
Exchange is open for trading. In addition,
shares are not offered and orders are not
accepted on Columbus Day and Veterans Day.
</TABLE>
<TABLE>
<CAPTION>
PURCHASE BY
FUND (EASTERN TIME):*
---- ----------------
<S> <C>
Money Market and
Government Funds 4:00 p.m.
Municipal Funds 11:45 a.m.
* or the close of the Exchange
(whichever comes first)
</TABLE>
<TABLE>
<S> <C>
If a purchase order is received in good order
prior to the applicable Fund's deadline, the
purchase price will be the NAV per share next
determined on that day. If a purchase order is
received in good order after the applicable
deadline, the purchase price will be the NAV of
the following day that the Fund is open for
business. Checks to purchase shares are accepted
subject to collection at full face value in U.S.
funds and must be drawn in U.S. dollars on a
U.S. bank.
</TABLE>
<TABLE>
<S> <C>
Opening an Account A completed, signed application is required to
open an account. Financial institutions may have
different procedures for opening an account.
Eligible investors in the Mileage Funds can
enroll in the American Airlines AAdvantage(R)
Program by calling (800) 433-7300. You may
request a Fund application form by calling (800)
934-4448.
Complete the application, sign it and:
Mail to:
TD Waterhouse
Processing Center
P.O. Box 1085
New York, NY 10268-1085
</TABLE>
- --------------------------------------------------------------------------------
Prospectus 17 About Your Investment
<PAGE> 18
<TABLE>
<S> <C>
Redemption Policies Shares of any Fund may be redeemed by telephone
or mail on any day that the Fund is open for
business. The redemption price will be the NAV
next determined after a redemption order is
received in good order. Any questions regarding
what constitutes good order should be directed
to the financial institution through which Fund
shares were purchased. Proceeds from redemptions
requested by the following deadlines will
generally be wired to shareholders on the same
day.
</TABLE>
<TABLE>
<CAPTION>
SAME DAY
WIRE REDEMPTION
ORDER DEADLINE
FUND (EASTERN TIME)*:
---- ----------------
<S> <C>
Money Market and Government
Funds 2:00 p.m.
Municipal Funds 11:45 a.m.
* or the close of the Exchange
(whichever comes first)
</TABLE>
<TABLE>
<S> <C>
In any event, proceeds from a redemption order
for any Fund will be transmitted to a
shareholder by no later than seven days after
the receipt of a redemption request in good
order. Delivery of proceeds from shares
purchased by check may be delayed until the
check has cleared, which may take up to 15 days.
The Funds reserve the right to suspend
redemptions or postpone the date of payment (i)
when the Exchange is closed (other than for
customary weekend and holiday closings); (ii)
when trading on the Exchange is restricted;
(iii) when the SEC determines that an emergency
exists so that disposal of a Fund's investments
or determination of its NAV is not reasonably
practicable; or (iv) by order of the SEC for
protection of the Funds' shareholders.
Although the Funds intend to redeem shares in
cash, each Fund reserves the right to pay the
redemption price in whole or in part by a
distribution of readily marketable securities
held by the applicable Fund's corresponding
Portfolio. Unpaid dividends credited to an
account up to the date of redemption of all
</TABLE>
- --------------------------------------------------------------------------------
About Your Investment 18 Prospectus
<PAGE> 19
<TABLE>
<S> <C>
shares generally will be paid at the time of
redemption.
General Policies If a shareholder's account balance in any Fund
falls below $1,000, the shareholder may be asked
to increase the balance. If the account balance
remains below $1,000 after 45 days, the Funds
reserve the right to close the account and send
the proceeds to the shareholder.
The following policies apply to instructions you
may provide to the Funds by telephone:
- The Funds, their officers, trustees,
directors, employees, or agents are not
responsible for the authenticity of
instructions provided by telephone, nor for
any loss, liability, cost or expense incurred
for acting on them.
- The Funds employ procedures reasonably
designed to confirm that instructions
communicated by telephone are genuine.
- Due to the volume of calls or other unusual
circumstances, telephone redemptions may be
difficult to implement during certain time
periods.
The Funds reserve the right to:
- reject any order for the purchase of shares
and to limit or suspend, without prior notice,
the offering of shares,
- modify or terminate the exchange privilege at
any time,
- limit the number of exchanges between Funds an
investor may exercise, and
- seek reimbursement from you for any related
loss incurred if your payment for the purchase
of Fund shares by check does not clear your
bank.
Each financial institution is responsible for
the prompt transmission of purchase and
redemption orders of its clients. Financial
institutions may provide varying arrangements
for their clients with respect to the purchase
and redemption of Platinum Class shares. Shares
purchased through financial
</TABLE>
- --------------------------------------------------------------------------------
Prospectus 19 About Your Investment
<PAGE> 20
<TABLE>
<S> <C>
institutions may be subject to transaction fees.
Financial institutions offering Platinum Class
shares may impose fees on investors for check
writing privileges or, if approved by the Funds,
establish variations on minimum check amounts.
Some institutions may arrange for additional
privileges associated with Platinum Class
shares, such as a debit card, which may only be
available subject to certain conditions or
limitations.
DISTRIBUTIONS AND TAXES The Funds distribute most or all of their net
- ----------------------- earnings in the form of dividends from net
investment income and distributions of realized
net capital gains that are paid to shareholders
monthly on the first business day after the
month ends. Unless the account application
instructs otherwise, distributions will be
reinvested in additional Fund shares. Usually,
dividends (except those paid by the Municipal
Funds) and distributions of net realized gains
are taxable events.
The Municipal Funds designate most of their
distributions as "exempt-interest dividends,"
which may be excluded from gross income. If the
Funds earn taxable income from any of their
investments, that income will be distributed as
a taxable dividend. If the Funds invest in
private activity obligations, shareholders will
be required to treat a portion of the
exempt-interest dividends they receive as a "tax
preference item" in determining their liability
for federal alternative minimum tax ("AMT").
Some states exempt from income tax the interest
on their own obligations and on obligations of
governmental agencies and municipalities in the
state; accordingly, each year shareholders will
receive tax information on the Funds'
exempt-interest income by state.
This is only a summary of some of the important
income tax considerations that may affect Fund
shareholders. Shareholders should consult their
tax adviser regarding specific questions as to
the effect
</TABLE>
- --------------------------------------------------------------------------------
About Your Investment 20 Prospectus
<PAGE> 21
<TABLE>
<S> <C>
of federal, state or local income taxes on an
investment in the Funds.
AADVANTAGE(R) MILES The AAdvantage program offers the opportunity to
- ------------------- obtain free upgrades and travel awards on
American Airlines and AAdvantage airline
participants, as well as upgrades and discounts
on car rental and hotel accommodations. For more
information about the AAdvantage program, call
American Airlines at (800) 433-7300.
AAdvantage travel awards ("miles") will be
posted monthly in arrears to each shareholder's
AAdvantage account based on the shareholder's
average daily account balance during the
previous month. Miles are posted at an annual
rate of one mile per $10 maintained in each
Mileage Fund. Mileage is calculated on the
average daily balance and posted monthly. The
average daily balance is calculated by adding
each day's balance and dividing by the number of
days in the month. For example, the average
daily balance on a $50,000 account funded on the
16th day of a month having 30 days (and
maintained at that balance through the end of
the month) would be $25,000. Mileage received
for that month would be 208 miles. If the same
balance were maintained through the next month,
the average daily balance would be $50,000, and
the mileage would be 417 miles that month and
every month the $50,000 investment was
maintained in the Mileage Fund. These miles
appear on subsequent AAdvantage program
statements.
For trust accounts, AAdvantage miles will be
posted only in a trustee's individual name, and
not in the name of the trust account. Before
investing in the Mileage Funds, trustees of
trust accounts should consult their own legal
and tax advisers as to the tax effect of this
arrangement and whether this arrangement is
consistent with their legal duties as trustees.
American Airlines has informed the Mileage Funds
that in administering an AAdvantage
</TABLE>
- --------------------------------------------------------------------------------
Prospectus 21 About Your Investment
<PAGE> 22
<TABLE>
<S> <C>
member's AAdvantage account, it shall not be
required to distinguish between AAdvantage miles
accumulated by the individual in his/her
capacity as trustee to a trust account from
AAdvantage miles accumulated in an individual
capacity from other sources.
The Manager reserves the right to discontinue
the posting of AAdvantage miles or to change the
mileage calculation at any time upon notice to
shareholders. American Airlines may find it
necessary to change AAdvantage program rules,
regulations, travel awards and special offers at
any time. This means that American Airlines may
initiate changes impacting, for example,
participant affiliations, rules for earning
mileage credit, mileage levels and rules for the
use of travel awards, continued availability of
travel awards, blackout dates and limited
seating for travel awards, and the features of
special offers. American Airlines reserves the
right to end the AAdvantage program with six
months' notice. AAdvantage travel awards,
mileage accrual and special offers are subject
to governmental regulations.
</TABLE>
- --------------------------------------------------------------------------------
About Your Investment 22 Prospectus
<PAGE> 23
ADDITIONAL INFORMATION
- ----------------------
<TABLE>
<S> <C>
DISTRIBUTION OF The AAdvantage Funds and Mileage Funds have each
TRUST SHARES adopted a Distribution Plan for the Platinum
- --------------- Class (the "Plans") in accordance with Rule
12b-1 under the Investment Company Act of 1940
("1940 Act"), which allow the Funds to pay
distribution and other fees for the sale of Fund
shares and for other services provided to
shareholders. In addition, the Mileage Funds'
Plan authorizes expenses incurred in connection
with participation in the AAdvantage program.
The Plans provide that each Platinum Class Fund
will pay 0.25% per annum of its average daily
net assets to the Manager (or another entity
approved by the applicable Board). Because these
fees are paid out of each Fund's assets on an
on-going basis, over time these fees will
increase the cost of your investment and may
cost you more than paying other types of sales
charges.
MASTER-FEEDER STRUCTURE The Funds operate under a master-feeder
- ----------------------- structure. This means that each Fund is a
"feeder" fund that invests all of its investable
assets in a "master" fund with the same
investment objective. The "master" fund
purchases securities for investment. The
master-feeder structure works as follows:
</TABLE>
INVESTOR
purchases shares of
FEEDER FUND
which invests in
MASTER FUND
which buys
INVESTMENT SECURITIES
<TABLE>
<S> <C>
Each Fund can withdraw its investment in its
corresponding Portfolio at any time if the Board
determines that it is in the best interest of
the Fund and its shareholders to do so. If this
happens, the Fund's assets will be invested
according to the
</TABLE>
- --------------------------------------------------------------------------------
Prospectus 23 Additional Information
<PAGE> 24
investment policies and restrictions described
in this Prospectus.
FINANCIAL HIGHLIGHTS The financial highlights tables are intended to
- -------------------- help you understand each Fund's financial
performance for the past five years (or, if
shorter, the period of the Fund's operations).
Certain information reflects financial results
for a single share of the Fund's Platinum Class.
The total returns in the table represent the
rate that an investor would have earned (or
lost) on an investment in the Fund (assuming
reinvestment of all dividends and
distributions). Each Fund's highlights were
audited by Ernst & Young LLP, independent
auditors. More financial information about the
Funds is found in their Annual Report, which you
may obtain upon request.
<TABLE>
<CAPTION>
MONEY MARKET FUND
-----------------------------------------------------------------
PLATINUM CLASS
-----------------------------------------------------------------
TWO MONTHS NOVEMBER 7,
ENDED YEAR ENDED OCTOBER 31, 1995 TO
DECEMBER 31, ----------------------------------- OCTOBER 31,
FOR A SHARE OUTSTANDING 1999 1999 1998 1997 1996
THROUGHOUT THE PERIOD: ------------ -------- -------- -------- -----------
<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........... 0.01(A) 0.04(A) 0.05(A) 0.05(A) 0.05(A)
Less dividends from net
investment income.............. (0.01) (0.04) (0.05) (0.05) (0.05)
-------- -------- -------- -------- --------
Net asset value, end
of period...................... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
======== ======== ======== ======== ========
Total return (not annualized)... 0.82%(C) 4.33% 4.89% 4.87% 4.78%(B,C)
======== ======== ======== ======== ========
Ratios and supplemental data:
Net assets, end of period
(in thousands)................ $866,041 $841,653 $744,226 $494,413 $119,981
Ratios to average net assets
(annualized)
Expenses..................... 1.00%(A) 0.97%(A) 0.94%(A) 0.93%(A) 0.94%(A)
Net investment income........ 4.87%(A) 4.24%(A) 4.78%(A) 4.80%(A) 4.63%(A)
</TABLE>
(A) The per share amounts and ratios reflect income and expenses assuming
inclusion of the Fund's proportionate share of the income and expenses of
its corresponding Portfolio.
(B) Total return for the Platinum Class for the period ended October 31, 1996
reflects Institutional Class returns from November 1, 1995 through November
6, 1995 and returns of the Platinum Class through October 31, 1996. Due to
the different expense structures between the classes, total return would
vary from the results shown had the Platinum Class been in operation for the
entire year.
(C) Not annualized.
- --------------------------------------------------------------------------------
Additional Information 24 Prospectus
<PAGE> 25
<TABLE>
<CAPTION>
MONEY MARKET MILEAGE FUND
-------------------------------------------------------------------------
PLATINUM CLASS(A)
-------------------------------------------------------------------------
TWO MONTHS YEAR ENDED JANUARY 29,
ENDED OCTOBER 31, TO
DECEMBER 31, ------------------------------------ OCTOBER 31,
FOR A SHARE OUTSTANDING 1999 1999 1998 1997 1996
THROUGHOUT THE PERIOD: ------------ -------- ------- ------- -----------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period...... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
-------- -------- ------- ------- -------
Income from investment operations:
Net investment income(B)................. 0.01 0.04 0.05 0.05 0.03
Dividends from net investment income..... (0.01) (0.04) (0.05) (0.05) (0.03)
-------- -------- ------- ------- -------
Net asset value, end of period............ $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
======== ======== ======= ======= =======
Total return (not annualized)............. 0.80%(C) 4.22% 4.74% 4.71% 4.78%(C)
======== ======== ======= ======= =======
Ratios and supplemental data:
Net assets, end of period (in
thousands)............................. $442,218 $342,192 $73,875 $49,184 $15,429
Ratios to average net assets
(annualized)(B):
Expenses............................... 1.09% 1.09% 1.09% 1.09% 1.09%
Net investment income.................. 4.80% 4.17% 4.64% 4.64% 4.48%
Decrease reflected in above expense ratio
due to absorption of expenses by the
Manager................................ 0.01% - 0.03% 0.05% 0.15%
</TABLE>
(A) The Money Market Mileage Fund-Platinum Class commenced active operations on
January 29, 1996, and at that time the existing shares of the Fund were
designated as Mileage Class shares.
(B) The per share amounts and ratios reflect income and expenses assuming
inclusion of the Fund's proportionate share of the income and expenses of
its corresponding Portfolio.
(C) Not annualized.
- --------------------------------------------------------------------------------
Prospectus 25 Additional Information
<PAGE> 26
<TABLE>
<CAPTION>
MUNICIPAL MONEY MARKET FUND
--------------------------------------------------------------
PLATINUM CLASS
--------------------------------------------------------------
TWO MONTHS NOVEMBER 7,
ENDED YEAR ENDED OCTOBER 31, 1995 TO
DECEMBER 31, ------------------------------ OCTOBER 31,
1999 1999 1998 1997 1996
------------ ------- ------- ------- -----------
<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........................... 0.01(A) 0.02(A) 0.03(A) 0.03(A) 0.03(A)
Less dividends from net investment income....... (0.01) (0.02) (0.03) (0.03) (0.03)
------- ------- ------- ------- -------
Net asset value, end of period..................... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
------- ------- ------- ------- -------
Total return (not annualized)...................... 0.47%(C) 2.27% 2.75% 2.79% 2.88%(B,C)
------- ------- ------- ------- -------
Ratios and supplemental data:
Net assets, end of period (in thousands)........ $76,076 $81,118 $87,852 $63,883 $49,862
Ratios to average net assets (annualized):
Expenses..................................... 1.05%(A) 1.04%(A) 1.04%(A) 1.03%(A) 0.97%(A)
Net investment income........................ 2.77%(A) 2.24%(A) 2.69%(A) 2.75%(A) 2.72%(A)
------- ------- ------- ------- -------
Decrease reflected in above expense ratio due to
absorption of expenses by the Manager.......... 0.03% 0.01% 0.03% 0.01% 0.05%
</TABLE>
(A) The per share amounts and ratios reflect income and expenses assuming
inclusion of the Fund's proportionate share of the income and expenses of
its corresponding Portfolio.
(B) Total return for the Platinum Class for the period ended October 31, 1996
reflects Institutional Class returns from November 1, 1995 through November
6, 1995 and returns of the Platinum Class through October 31, 1996. Due to
the different expense structures between the classes, total return would
vary from the results shown had the Platinum Class been in operation for
the entire year.
(C) Not annualized.
- --------------------------------------------------------------------------------
Additional Information 26 Prospectus
<PAGE> 27
<TABLE>
<CAPTION>
MUNICIPAL MONEY
MARKET MILEAGE
FUND
-----------------
PLATINUM CLASS(B)
-----------------
TWO MONTHS ENDED
DECEMBER 31,
1999
FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD: -----------------
<S> <C>
Net asset value, beginning of period........................ $ 1.00
-------
Income from investment operations:
Net investment income(A)................................... 0.01
Dividends from net investment income....................... (0.01)
-------
Net asset value, end of period.............................. $ 1.00
=======
Total return (not annualized)............................... 0.45%(C)
=======
Ratios and supplemental data:
Net assets, end of period (in thousands)................... $ 1
Ratios to average net assets (annualized)(A):
Expenses................................................. 1.10%
Net investment income.................................... 2.74%
Decrease reflected in above expense ratio due to absorption
of expenses by the Manager............................... 0.17%
</TABLE>
(A) The per share amounts and ratios reflect income and expenses assuming
inclusion of the Fund's proportionate share of the income and expenses of
the respective AMR Investment Services Portfolio.
(B) The Platinum Class of the Municipal Money Market Mileage Fund commenced
active operations on November 1, 1999 and at that time the existing shares
of the Fund were designated as Mileage Class shares.
(C) Not annualized.
- --------------------------------------------------------------------------------
Prospectus 27 Additional Information
<PAGE> 28
<TABLE>
<CAPTION>
U.S. GOVERNMENT MONEY MARKET FUND
------------------------------------------------------------------------
PLATINUM CLASS
------------------------------------------------------------------------
TWO MONTHS NOVEMBER 7,
ENDED YEAR ENDED OCTOBER 31, 1995 TO
DECEMBER 31, ----------------------------------- OCTOBER 31,
FOR A SHARE OUTSTANDING 1999 1998 1997(B) 1996
THROUGHOUT THE PERIOD: ------------ ------- ------- -----------
<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......................... 0.01(A) 0.04(A) 0.05(A) 0.05(A) 0.04(A)
Less dividends from net investment income..... (0.01) (0.04) (0.05) (0.05) (0.04)
------- ------- ------- ------- -------
Net asset value, end of period................ $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
======= ======= ======= ======= =======
Total return (not annualized)................. 0.80%(E) 4.09% 4.71% 4.61% 4.58%(C,E)
======= ======= ======= ======= =======
Ratios and supplemental data:
Net assets, end of period (in thousands)..... $78,585 $84,385 $78,412 $68,439 $52,153
Ratios to average net assets (annualized)(D)
Expenses................................... 1.02%(A) 1.01%(A) 1.01%(A) 0.99%(A) 1.00%(A)
Net investment income...................... 4.77%(A) 4.01%(A) 4.62%(A) 4.53%(A) 4.35%(A)
</TABLE>
(A) The per share amounts and ratios reflect income and expenses assuming
inclusion of the Fund's proportionate share of the income and expenses of
its corresponding Portfolio.
(B) Prior to March 1, 1997, the U.S. Government Money Market Fund was known as
the U.S. Treasury Money Market Fund and operated under different investment
policies.
(C) Total return for the Platinum Class for the period ended October 31, 1996
reflects Institutional Class returns from November 1, 1995 through November
6, 1995 and returns of the Platinum Class through October 31, 1996. Due to
the different expense structures between the classes, total return would
vary from the results shown had the Platinum Class been in operation for the
entire year.
(D) Operating results exclude fees waived by the Manager during the year ended
October 31, 1998. Had the Platinum Class of the Fund paid such fees, the
ratio of expenses and net investment income to average net assets would have
been 1.02% and 4.62%, respectively.
(E) Not annualized.
- --------------------------------------------------------------------------------
Additional Information 28 Prospectus
<PAGE> 29
<TABLE>
<CAPTION>
U.S. GOVERNMENT
MONEY MARKET
MILEAGE FUND
-----------------
PLATINUM CLASS(B)
-----------------
TWO MONTHS ENDED
DECEMBER 31,
1999
FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD: -----------------
<S> <C>
Net asset value, beginning of period........................ $ 1.00
-------
Income from investment operations:
Net investment income(A)................................... 0.01
Dividends from net investment income....................... (0.01)
-------
Net asset value, end of period.............................. $ 1.00
=======
Total return (not annualized)............................... 0.80%(C)
=======
Ratios and supplemental data:
Net assets, end of period (in thousands)................... $ 1
Ratios to average net assets (annualized)(A):
Expenses................................................. 1.10%
Net investment income.................................... 4.69%
Decrease reflected in above expense ratio due to absorption
of expenses by the Manager............................... 0.20%
</TABLE>
(A) The per share amounts and ratios reflect income and expenses assuming
inclusion of each Fund's proportionate share of the income and expenses of
the respective AMR Investment Services Portfolio.
(B) The Platinum Class of the U.S. Government Money Market Mileage Fund
commenced active operations on November 1, 1999 and at that time the
existing shares of the Fund were designated as Mileage Class shares.
(C) Not annualized.
- --------------------------------------------------------------------------------
Prospectus 29 Additional Information
<PAGE> 30
-- Notes --
<PAGE> 31
-- Notes --
<PAGE> 32
ADDITIONAL INFORMATION
- --------------------------------------------------------------------------------
ADDITIONAL INFORMATION ABOUT THE FUNDS IS FOUND IN THE DOCUMENTS LISTED BELOW.
REQUEST A FREE COPY OF THESE DOCUMENTS BY CALLING (800) 388-3344.
ANNUAL REPORT/SEMI-ANNUAL REPORT
The Funds' Annual and Semi-Annual Reports list the Funds' actual investments as
of the report's date. They also include a discussion by the Manager of market
conditions and investment strategies that ~significantly affected the Funds'
performance. The report of the Funds' independent auditors is included in the
Annual Report.
STATEMENT OF ADDITIONAL INFORMATION
The SAI contains more details about the Funds and their investment policies. The
SAI is incorporated in this Prospectus by reference (it is legally part of this
Prospectus). A current SAI is on file with the Securities and Exchange
Commission (SEC).
TO OBTAIN MORE INFORMATION ABOUT THE FUNDS OR TO REQUEST A COPY OF THE DOCUMENTS
LISTED ABOVE:
[GRAPHIC] [GRAPHIC]
By Telephone: By Mail:
Call (800) 388-3344 American AAdvantage Funds
P.O. Box 619003, MD5645
DFW Airport, TX 75261-9003
[GRAPHIC] [GRAPHIC]
By E-mail: On The Internet:
[email protected] Visit our website at www.aafunds.com
Visit the SEC website at www.sec.gov
Copies of these documents may also be obtained from the SEC Public Reference
Room by mailing a request, including a duplicating fee to: SEC's Public
Reference Section, 450 5th Street NW, Washington, D.C. 20549-6009. The Public
Reference Room can be reached at (202) 942-8090.
Available through
<TABLE>
<S> <C>
Call, click or come in today.
1-800-934-4448 o tdwaterhouse.com o aol keyword: TD Waterhouse o 170 branches nationwide
</TABLE>
TD WATERHOUSE
XPRS YRSLF
A LEADING ONLINE FINANCIAL SERVICES FIRM
AND THE WORLD'S 2ND LARGEST DISCOUNT BROKER
AMERICAN AMERICAN AADVANTAGE
AADVANTAGE FUNDS(R) MILEAGE FUNDS(R)
SEC File Number 811-4984 SEC File Number 811-9018
American Airlines is not responsible for investments made in the American
AAdvantage Funds. American AAdvantage Funds and American AAdvantage Mileage
Funds are registered service marks of AMR Corporation. Platinum Class, American
AAdvantage Money Market Fund, American AAdvantage Municipal Money Market Fund,
American AAdvantage U.S. Government Money Market Fund, American AAdvantage Money
Market Mileage Fund, American AAdvantage Municipal Money Market Mileage Fund and
American AAdvantage U.S. Government Money Market Mileage Fund are service marks
of AMR Investment Services, Inc.
