REGISTRATION No. 33-12911
As filed on January 19, 1996
Registration No. 811-5075
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM N-1A
/ / REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933
/ /
/X/ POST-EFFECTIVE AMENDMENT NO. 17
AND/OR
REGISTRATION STATEMENT UNDER THE INVESTMENT COMPANY
/ / ACT OF 1940
/X/ AMENDMENT NO. 19
(CHECK APPROPRIATE BOX OR BOXES)
THE AAL MUTUAL FUNDS
(EXACT NAME OF REGISTRANT IS SPECIFIED IN CHARTER)
222 WEST COLLEGE AVE.
APPLETON, WISCONSIN 54919-0007
(ADDRESS OF PRINCIPAL EXECUTIVE OFFICES) (ZIP CODE)
Registrant's Telephone Number, including Area Code (414) 734-5721
Robert G. Same
Secretary
The AAL Mutual Funds
222 West College Avenue
Appleton, WI 54919-0007
(NAME AND ADDRESS OF AGENT FOR SERVICES)
APPROXIMATE DATE OF PROPOSED PUBLIC OFFERING: AS SOON AS PRACTICABLE
AFTER THE EFFECTIVE DATE OF THE REGISTRATION STATEMENT.
IT IS PROPOSED THAT THIS FILING WILL BECOME EFFECTIVE (CHECK APPROPRIATE BOX)
/ / IMMEDIATELY UPON FILING PURSUANT TO PARAGRAPH (B) OF RULE 485
/X/ ON JANUARY 31, 1996, PURSUANT TO PARAGRAPH (B) OF RULE 485
/ / 60 DAYS AFTER FILING PURSUANT TO PARAGRAPH (A)(1) OF RULE 485
/ / ON ____________,1996, PURSUANT TO PARAGRAPH (A)(1) OF RULE 485
REGISTRANT HAS PREVIOUSLY REGISTERED AN INDEFINITE NUMBER OF ITS SHARES OF
BENEFICIAL INTEREST PURSUANT TO RULE 24F-2 UNDER THE INVESTMENT COMPANY ACT OF
1940. REGISTRANT FILED A NOTICE UNDER RULE 24F-2 BEFORE JUNE 30, 1995.
<PAGE>
CROSS REFERENCE SHEET FOR
The AAL International Fund
N-1A Item No. Location
PART A
Item 1 Cover Page Cover Page
Item 2 Synopsis Synopsis, General Information
Item 3 Financial Highlights Prospectus Supplement dated
January 31, 1996
Item 4 General Description of Registrant Cover Page; General Infor-
mation; Investment Objectives
and Policies
Item 5 Management of the Fund Board of Trustees; Sticker,
Management of the Trust
Item 5A Portfolio Manager Portfolio Manager; Sticker
Item 6 Capital Stock and Other Securities Organization and Description
of Shares
Item 7 Purchase of Securities Being Offered How to Buy Shares, Dividends,
Distributions and Taxes;
Organization & Description
of Shares
Item 8 Redemption or Repurchase How to Sell (Redeem) Shares
Item 9 Pending Legal Proceedings Not Applicable
PART B
Item 10 Cover Page Cover Page
Item 11 Table of Contents Table of Contents
Item 12 General Information and History Not Applicable
Item 13 Investment Objectives and Policies Investment Objectives & Poli-
cies; Investment Techniques
Investment Restrictions
Item 14 Management of the Fund Investment Advisory Services;
Distribution Plan; Sticker
Item 15 Control Persons and Principal Investment Advisory
Holders of Securities Services
Item 16 Investment Advisory and Other Services Investment Advisory Services;
Distributor; Distribution
Plan
Item 17 Brokerage Allocation Portfolio Transactions
Item 18 Capital Stock and Other Securities General
Item 19 Purchase, Redemption and Pricing of Purchases & Redemptions;
Securities Being Offered Pricing Considerations
Item 20 Tax Status Tax Status, Dividends, and
Distributions
Item 21 Underwriters Distributor
Item 22 Calculation of Performance Data Calculation of Yield and
Total Return
Item 23 Financial Statements The AAL International Fund
Financial Statements;
Statement of Additional
Information Supplement dated
January 31, 1996
PART C
Item 24 Information required to be included in Part C is set forth under the
appropriate Item, so numbered in Part C to this Registration Statement
<PAGE>
PART A - INFORMATION REQUIRED IN A PROSPECTUS
In partial response to Part A of Form N-1A, the Registrant hereby
incorporates its current Prospectus, dated August 1, 1995, which is included in
Amendment No. 13 to its Registration Statement on Form N-1A (Registration No.
33-12911), as filed with the Securities and Exchange Commission on May 16, 1995.
In further response to Item 3 and Item 6 of Form N-1A, the Registrant states as
follows:
SUPPLEMENT DATED JANUARY 31, 1996, TO THE PROSPECTUS DATED
AUGUST 1, 1995 (AS SUPPLEMENTED TO DATE) FOR THE
AAL INTERNATIONAL FUND
The disclosure on page 4 of the Fund's Prospectus, immediately prior to the
section captioned "Synopsis," is supplemented by adding the following:
THE AAL INTERNATIONAL FUND
FINANCIAL HIGHLIGHTS
The following table provides you with unaudited financial information on The AAL
International Fund for the period from its inception on August 1, 1995, through
December 31, 1995. The information is based on a share of beneficial interest
outstanding throughout the applicable period. This information should be read in
conjunction with the unaudited financial statements and related notes appearing
in the Statement of Additional Information.
<PAGE>
<TABLE>
<CAPTION>
FINANCIAL HIGHLIGHTS
(Based on a share outstanding throughout the period)
- -------------------------------------------------------------------------------
(unaudited)
The International Fund
Period Ended
12/31/95 (1)(3)
------------------------
<S> <C>
Net asset value: Beginning of Period $10.00
INCOME FROM INVESTMENT OPERATIONS
Net investment income 0.018
Net realized and unrealized gain (loss) on
investments 0.136
-----------------
Total From Investment Operation 0.154
-----------------
DISTRIBUTIONS FROM
Net investment income (0.024)
Net realized capital gains --
-----------------
Total distributions (0.024)
-----------------
Net increase (decrease) in net asset value 0.130
Net asset value:
End of period $10.13
=================
Total Return (2) 1.44%
Net Assets, End of Period $25,353,045
Ratio of expenses to average net
assets (3)(4)(5) 2.50%
Ratio of net investment income to average
net assets (3)(4)(6) 0.85%
Portfolio turnover rate 0.08%
(1) From commencement of operations August 1, 1995.
(2) Total return assumes reinvestment of all dividends and distributions but
does not reflect any deduction for sales charges. The aggregate (not
annualized) total return is shown for the period ended December 31, 1995.
(3) Financial highlights for the period are unaudited.
(4) Calculated on an annualized basis.
(5) Computed after giving effect to adviser expense limitation undertaking. If
the Fund had paid all of its expenses the ratio would have been 3.44% for
the period ended December 31, 1995.
(6) If the Fund had paid all of its expenses, the ratio would have been -.095%
for the period ended December 31, 1995.
NOTE: THIS SUPPLEMENT MUST ACCOMPANY THE DELIVERY OF ALL PROSPECTUSES ON OR
AFTER JANUARY 31, 1996.
</TABLE>
<PAGE>
PART B - INFORMATION REQUIRED IN A STATEMENT OF ADDITIONAL INFORMATION
In partial response to Part B of Form N-1A (Item 10 through Item 23), the
Registrant incorporates by reference its current Statement of Additional
Information dated August 1, 1995, which is included in Post-Effective Amendment
No. 13 to its Registration Statement on Form N-1A (Registration No. 33-12911),
as filed with the Securities and Exchange Commission on May 16, 1995. In further
response to Item 23 of Form N-1A, the Registrant states as follows:
SUPPLEMENT DATED JANUARY 31, 1996, TO THE STATEMENT OF
ADDITIONAL INFORMATION DATED AUGUST 1, 1995, FOR THE AAL
INTERNATIONAL FUND (AS SUPPLEMENTED TO DATE).
The section of The AAL International Fund's ("Fund") Statement of Additional
Information captioned "Financial Statements" is supplemented to read as follows:
FINANCIAL STATEMENTS
The following pages present unaudited financial statements for the Fund as of
December 31, 1995 and for the period from August 1, 1995 (commencement of
operations) through December 31, 1995, which include the Fund's:
(1) Statement of Assets and Liabilities;
(2) Statement of Operations;
(3) Statement of Changes Net Assets;
(4) Schedule of Investments; and
(5) Related Notes
In the opinion of management of the Fund, these financial statements
reflect all normal recurring adjustments necessary for a fair presentation of
the Fund's operating results for the period from August 1, 1995 (commencement of
operations) through December 31, 1995.
<PAGE>
AAL INTERNATIONAL FUND
STATEMENT OF ASSETS AND LIABILITIES
DECEMBER 31, 1995
- --------------------------------------------------------------------------------
ASSETS
Investments, at value (Cost: $24,893,087) $25,198,919
Cash 694,415
Receivable for forward currency contracts held. at value 7,142,215
A/R from Advisor ----
Subs. Receivable ----
Dividends Rec. and Interest Rec 67,874
A/R Investments ----
Unamortized Organization Costs 67,222
Prepaid Expenses ----
-------------
TOTAL ASSETS $33,170,645
================
LIABILITIES
Payable for forward currency contracts held, at cost $7,121,466
A/P Investments 595,053
Accrued Expenses 126,682
Redemptions Pay ----
Dividends Pay ----
Payable to Affiliate 6,399
--------------
TOTAL LIABILITIES 7,849,600
--------------
NET ASSETS
Trust Capital (benificial interest) 25,009,882
Undistributed Income (14,508)
Undistributed Cap Gains (1,696)
Unrealized Appreciation (Depreciation) on:
Investments 305,832
Forward currency contracts 52,750
Foreign currency related transactions 785
--------------
TOTAL SHAREHOLDERS' EQUITY 25,353,045
================
TOTAL LIABILITIES & SHAREHOLDERS EQUITY $33,202,645
================
Shares Outstanding 2,504,949
================
Net Asset Value Per Share $10.12
=========
Public Offering Price Per Share $10.63
=========
The accompanying notes to financial statements are an integral part of this
statement.
<PAGE>
AAL INTERNATIONAL FUND
STATEMENT OF OPERATIONS
- -------------------------------------------------------------------------------
INVESTMENT INCOME
Dividends $56,482
Dividend Witholding (5,077)
Interest 32,587
Discount Accretion 87,510
---------
Total Investment 171,502
---------
EXPENSES
Advisor Fee 12,680
Sub-Advisor Fees 38,039
Audit fees 4,640
Custodian 7,600
Fund Accounting 21,151
Legal Fees 2,082
Amortization of Organization 2,935
Printing & Postage 25,410
Distribution Expense 12,680
S.E.C. and State Registration 96
Transfer Agency Fees 40,482
Shareholder Service Fee 1,827
Trustees fees & expenses 4,600
Other Expenses 213
---------
Total Expenses 174,435
---------
Reimbursement from Advisor (47,673)
---------
Total Expenses 126,762
---------
NET INVESTMENT INCOME 44,740
---------
REALIZED AND UNREALIZED GAINS (LOSSES) ON INVESTMENTS
Net realized gain (loss) from:
Investments 332
Foreign Currency related transactions (1,219)
---------
TOTAL (887)
---------
NET INCREASE (DECREASE) IN UNREALIZED APPRECIATION FROM:
Investments 305,832
Foreign Currency related transactions 53,535
---------
NET REALIZED AND UNREALIZED GAIN (LOSS) 359,367
---------
Net increase in net assets from operations 403,320
=========
The accompanying notes to financial statements are an integral part of this
statement.
<PAGE>
AAL INTERNATIONAL FUND
STATEMENT OF CHANGES IN NET ASSETS
- -------------------------------------------------------------------------------
OPERATIONS
- ----------------------------
Net investment income $44,740
Net realized gains (losses) on investments and foreign currency (887)
Increase in unrealized appreciation on investments 358,582
Increase in unrealized appreciation on currency 785
---------
Net increase in net assets from operations 403,220
---------
DISTRIBUTIONS TO SHAREHOLDERS
- ----------------------------
Dividends from net investment income (59,248)
Capital gain distribution (810)
---------
TOTAL DISTRIBUTIONS TO SHAREHOLDERS (60,058)
---------
TRUST SHARE TRANSACTIONS:
Purchases of trust shares 25,165,778
Income dividends reinvested 57,381
Capital gains reinvested
Redemption of trust shares (213,276)
---------
NET INCREASE IN TRUST CAPITAL 25,009,883
--------------
NET INCREASE IN NET ASSETS 25,353,045
--------------
NET ASSETS BEGINNING OF PERIOD ---
NET ASSETS END OF PERIOD $25,353,045
==============
The accompanying notes to financial statements are an integral part of this
statement.
<PAGE>
THE AAL INTERNATIONAL FUND
SCHEDULE OF INVESTMENTS
- -------------------------------------------------------------------------------
ARGENTINA
100,000 Ledesma S.A. Other Equities 128,026
175,000 Siderca S.A. Class A Other Equities 169,784
50,000 Cresud S.A. Other Equities 68,014
85,864 IRSA Inversiones y Other Equities 216,421
-------------
582,245
-------------
AUSTRIA
2,500 VAE Eisenbahnsysteme AG Misc-Manufacturing 211,019
104,100 Spotless ServicesLtd. Commercial Services 139,388
-------------
350,407
-------------
BELGIUM
850 Deceuninck Plastics Basic Materials
Industries SA 95,459
-------------
CANADA
15,000 Noranda Inc. Metals-Diversified 309,338
25,000 Redstone Resources Mining 72,406
15,000 Canadian Pacific Transportation 271,875
2,000 Franco-Nevada Mining Mining 16,953
Corp. Ltd.
-------------
770,572
-------------
FINLAND
7,000 Vaisala Oy A Other Equities 256,333
-------------
FRANCE
2,500 Comptoir Lyon Alemand Mining 196,818
Louyot
500 Taittinger Cie Wine & Spirits 131,894
Commerciale, France
3,500 Emin LeydierEmballages Forest Products 285,565
France
5,000 Eramet SLN Mining 327,178
1,750 Essilor International Medical Supplies 244,770
3,500 Elf Aquitaine Oil International 258,225
1,000 Conflandey SA, Steel 55,416
1,000 Sabeton SA Building Materials 163,794
2,000 Legris Industries SA Machine-Diversified 65,190
1,500 Legrand Electronics 150,298
3,000 Gaumont Entertainment 193,240
1,580 Promodes Retail Stores 271,394
1,000 Rougier, SA Building Materials 102,448
500 Sucriere de PithivrsLe Sugar Refineries 246,917
Vieil, France
1,500 N.S.C SA Machine-Diversified 252,745
(N. Schlumberger),France -------------
2,945,892
-------------
GERMANY
3,000 Bertelsmann AG Publishing/Printing 395,123
1,000 Bayer AG Chemicals 266,070
1,150 Buderus AG Misc-Manufacturing 449,972
4,000 Hornbach Holding AG Retail Stores 349,357
-------------
1,460,522
-------------
The accompanying notes to financial statements are an integral part of this
statement.
<PAGE>
HONG KONG
450,000 Shaw Brothers Ltd. Entertainment 494,704
1,000,000 CDL Hotels InterntlLtd., Lodging 504,404
Hong Kong
350,000 South China Morning Post Publishing/Printing 213,887
Holdings
-------------
1,212,995
-------------
ITALY
450,000 Montedison S.p.AD Risp, Chemicals 266,642
Italy
20,000 Mondarori (Arnoldo) Publishing/Printing 173,475
Editore, Italy
-------------
440,117
-------------
JAPAN
18,000 Tokio Marine & Fire Insurance 235,576
Insurance Co.
5,000 Asatsu Inc. Business Services 210,370
20,000 Iino Kaiun Kaisha Transportation 114,007
10,000 Nisshinbo Industries Textiles 96,945
2,500 Hitachi ADR Electronics 251,250
50,000 Shoei Company Textiles 436,251
7,500 Fuji Photo Film-ADR Electronics 435,938
20,000 Sotoh Company, Ltd. Textiles 197,767
20,000 Nittetsu Mining Mining 199,706
20,000 Shimano Inc. Bicycles 352,879
7,000 Ito-Yokado Co. Ltd Retail Stores 431,598
2,000 Fast Retailing Co Ld Retail Stores 99,465
25,000 Aida Engineering Ltd Machine-Diversified 191,950
10,000 Yoshimoto Kogyo Co. Entertainment 130,875
3,000 Chofu Seisakusho Machine-Diversified 80,561
2,000 Toho Company Entertainment 319,917
3,000 Tsutsumi Jewelry Co.Ltd. Jewelry, Watch 150,361
65,000 Dai-Tokyo Fire & Marine Insurance 496,551
Ins.
15,000 Japan AirportTerminal Commercial Services 181,771
-------------
4,613,738
-------------
LUXEMBURG
2,500 Minorco, SA ADR Mining 71,563
62 Socfinasia Food & Agriculture 86,272
-------------
157,835
-------------
NETHERLANDS
2,000 German City Estates Other Equities 30,320
5,000 Philips Elctronics Electronics 179,375
5,000 Apothekers Coop OPG Wholesale Special 123,214
-------------
332,909
-------------
NEW ZEALAND
450,000 Shortland PropertiesLtd. Real Property 253,007
200,000 Tasman AgricultureLtd. Food & Agriculture 203,975
175,000 Carter Holt HarveyLtd. Forest Products 377,550
65,000 Wilson & Horton Ltd. Publishing/Printing 388,827
50,000 Applefields Ltd. Food & Agriculture 22,882
-------------
1,246,241
-------------
NORWAY
25,000 Schibsted Gruppen Publishing/Printing 340,308
-------------
SINGAPORE
100,000 Clipsal IndustriesLtd., Electronics 226,000
Singapore
16,500 Singapore Bus Service Transportation 117,824
100,000 Times Publishing Ltd Publishing/Printing 231,900
-------------
575,724
-------------
The accompanying notes to financial statements are an integral part of this
statement.
<PAGE>
SOUTH KOREA
15,000 LG Electronics Inc. Electronics 170,550
-------------
SPAIN
30,000 Energia e Industrias Holding Company 114,494
Aragonesas
-------------
SWEDEN
15,000 AssiDoman AB Forest Products 325,930
11,300 Terra Mining Mining 138,965
15,000 IRO AB Sweden Misc-Manufacturing 169,755
-------------
634,650
-------------
SWITZERLAND
600 Kuehne & Nagel Transportation 357,205
350 Sika Finanz AG Building Materials 85,173
175 Lindt&Spruengli AG-PC Food & Beverages 255,519
50 Bank for International Financial Services 421,519
Settlements
-------------
1,119,416
-------------
UNITED KINGDOM
65,000 McBride Plc Cosmetic 196,817
45,000 Antofagasta Holdings Mining 204,736
75,000 Lonrho PLC Holding Company 204,969
65,000 Blenheim Group PLC Advertising 254,348
-------------
860,870
-------------
MISCELLANEOUS
18,000 North European Oil Oil International 229,500
Royalty Trust
5,500 Banco Latinoamerican Financial Services 255,750
(Bladex), Panama
-------------
Preferred Stocks 485,250
-------------
15,000 Freeport-McMoran Mining 455,625
Preferred C Var.
5,500 Freeport-McMoran Mining 116,188
Preferred Var
5,000 L.G. Electronics-PFD Electronics 111,508
10,000 Ssangyong Cement Co PFD Building Materials 165,007
-------------
848,328
-------------
The accompanying notes to financial statements are an integral part of this
statement.
<PAGE>
PAR VALUE U.S. DOLLAR CONVERTIBLE BONDS
$150,000 Far East Textile CnvBnd 4.00% 10/7/2006 173,250
$250,000 Cheil Foods & Chemical 3.00% 12/31/2006 328,750
-------------
502,000
-------------
NON U.S. DOLLAR CORPORATE BONDS
FRF 3,228 Immobilier HoteliereFRF (Convertible) 108,914
DM 500,000 Air Canada Var. Rate Bonds 3/29/2049 200,530
FRF 500,000 Michelin France 6.0% 1/2/1998 1/2/1998 103,905
-------------
413,349
-------------
U.S. DOLLAR BONDS
$150,000 Sincere Navigation 3.75% 5/26/2003 106,000
$350,000 New Zealand Govt.Bond 10.0% 3/15/2002 258,884
$200,000 Republic of Poland PDI 10/27/2014 129,750
$350,000 Republic of Argentina FRB 3/31/2005 247,800
$318,361 Federal Republic of Brazil "C" Bond
Variable 8.00% 4/15/2004 182,262
$150,000 Scandinavian Broad-casting Luxemburg 153,375
-------------
1,078,071
-------------
COMMERCIAL PAPER
$481,000 AT&T Corp 5.76% 1/2/96 480,769
400,000 Anheiser Busch Co. 5.70% 1/8/96 399,430
615,000 Atlantic Richfield 5.57% 1/19/96 613,097
750,000 Brooklyn Harion Gas 5.95% 1/5/96 749,256
500,000 CSX Corp. 5.90%1/4/96 499,590
450,000 Time Warner Entertainment 5.98% 1/4/96 449,626
400,000 Union Oil of California 5.95% 1/16/96 398,876
-------------
3,590,644
-------------
TOTAL INVESTMENTS $25,198,919
=============
The accompanying notes to financial statements are an integral part of this
statement.
<PAGE>
- -------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS
- -------------------------------------------------------------------------------
(A) ORGANIZATION
The AAL Mutual Funds (the "Trust") was organized as a Massachusetts
Business Trust on March 13, 1987, and is registered as an open-end diversified
management company under the Investment Company Act of 1940. The Trust commenced
operations on July 16, 1987, with The AAL Capital Growth Fund, The AAL Income
Fund and The AAL Municipal Bond Fund. On March 10, 1988, The AAL Money Market
Fund commenced operations. On July 1, 1992, The AAL Income Fund changed its name
to The AAL Bond Fund. On June 30, 1993, The AAL Smaller Company Stock Fund
commenced operations; on March 17, 1994, The AAL Utilities Fund commenced
operations; and on August 1, 1995, The AAL International Fund (the "Fund")
commenced operations. The AAL U.S. Government Zero Coupon Target Funds, Series
2001 and 2006, are also portfolios in the series. The nine AAL Funds are
collectively referred to as the "Funds".
(B) SIGNIFICANT ACCOUNT POLICIES
The Funds' principal accounting policies are:
Security valuation - The Fund invests in foreign securities, including
stocks, bonds, notes and convertible securities, whose values are subject
to changes in market conditions, as well as changes in political and
regulatory environments. All securities for which market quotations are
available on a national securities exchange in the United States or a
securities exchange abroad are valued at their last sale price. All
over-the-counter securities for which market quotations are readily
available are valued at the last sale price. All other securities are
valued at fair value as determined by the Investment Adviser under
supervision of the Board of Trustees.
Foreign currency translation - The market values of securities which
are not traded in United States currency are recorded in the financial
statements after translation to U.S. dollars using the exchange quotation
in effect at the time net asset value is calculated. The costs of such
securities are translated at exchange rates prevailing when acquired.
Additionally, other assets and liabilities denominated in foreign
currencies are translated into U.S. dollars.
The Fund does not isolate that portion of gains and losses on
investments which is due to changes in foreign exchange rates from that
which is due to changes in market prices of the equity securities.
Forward currency contracts - In connection with purchases and sales of
securities denominated in foreign currencies, the Fund may enter into
forward currency contracts. Additionally, the Fund may enter into such
contracts to hedge certain other foreign currency denominated investments.
These contracts are recorded at market value, and the related realized and
unrealized foreign exchange gains and losses are included in the statement
of operations. In the event that counter parties fail to settle these
currency contracts or the related foreign security trades, the Fund could
be exposed to foreign currency fluctuations.
<PAGE>
NOTES TO FINANCIAL STATEMENTS--(Continued)
- -------------------------------------------------------------------------------
United States income taxes - No provision has been made for United
States federal income taxes since it is the intention of the Fund to
distribute to shareholders all taxable net investment income and net
realized gains on investments, if any, within the allowable time limit, and
to comply with the other provisions of the Internal Revenue Code for a
regulated investment company. Such income dividends and capital gains
distributions are declared and paid by the Fund on an annual basis.
Other - For financial statement purposes, investment security
transactions are accounted for on the trade date. Dividend income is
recognized on the ex-dividend date, and interest income is recognized on an
accrual basis. Discounts on bonds are amortized over the life of the
respective bonds. Realized gains or losses on sales are determined on a
specific cost identification basis. The Funds have no right to require
registration of unregistered securities. The cost incurred with the
organization and initial registration of shares for The AAL International
Fund is being amortized over the period of benefit, but not to exceed 60
months from each Fund's commencement of operation.
(C) INVESTMENT ADVISORY AGREEMENT AND TRANSACTIONS WITH
AFFILIATED PERSONS
The Trust has entered into an Investment Advisory Agreement with AAL
Capital Management Corporation, ("The Adviser"), under which The AAL
International Fund pays a fee for investment advisory services. The annual rates
of fees under the Investment Advisory Agreement are calculated as: 1% of the
Funds average daily net asset.
The Adviser has entered into a Sub-Advisory Agreement with Societe
Generale Asset Management Corporation (Sub-Adviser). The sub-advisory fee, which
is paid by the Adviser, is equal to the rate of .75 of 1% of the Funds average
daily net assets.
The Trust has entered into an Administrative Services Agreement with
the Adviser pursuant to which the Adviser provides certain administrative
services. The adviser earned the fee of $16,667 from the Fund for the period
ended December 31, 1995.
The Trust has also contracted with AAL Capital Management Corporation
for certain shareholder maintenance services, effective April 1, 1995. These
shareholder services include preprocessing and quality control of new accounts,
shareholder correspondence, account response and answering customer inquires
regarding account status, option and facilitating shareholder telephone
transactions. Fees charged to the Funds under terms of the contract approximated
$3.58 per shareholder account for the period ended December 31, 1995.
The Trust has adopted a Distribution Plan (the "Plan") pursuant to Rule
12b-1 under the Investment Company Act of 1940. The Plan authorizes the Trust to
use a portion of its assets to finance certain activities relating to the
distribution of its shares to investors. Payments under the Plan are equal to a
maximum of .25 of 1% of the average daily net assets of the Fund.
<PAGE>
NOTES TO FINANCIAL STATEMENTS--(Continued)
- -------------------------------------------------------------------------------
Trustees of the Trust not affiliated with AAL or the Adviser receive an
annual fee of $10,000 and $1,000 for each meeting of the Board of Trustees, or
Committee thereof, attended. No remuneration has been paid by the Trust to any
of the officers or affiliated Trustees of the Trust. In addition, the Trust
reimburses unaffiliated Trustees for reasonable expenses incurred in relation to
attendance at the meetings.
Each of the Funds is charged for those expenses that are directly
attributable to it, such as advisory, custodian, and certain shareholder service
fees, while other expenses that cannot be directly attributable to the Funds are
allocated among the Funds in proportion to the net assets of the respective
Fund.
The Adviser reimburses the Funds for annual expenses in excess of the
lowest expense limitation imposed by the States.
AAL is the ultimate parent company for AAL Capital Management
Corporation.
(D) SECURITY TRANSACTIONS
During the period ended December 31, 1995, purchases and sales of
securities other than short-term obligations were as follows:
Purchases Sales
---------------------- ---------------------
Period Ended Period Ended
12/31/95 12/31/95
---------------------- ---------------------
The AAL International Fund $21,306,089 $4,933
Cost of investments is substantially the same for financial reporting
purposes and Federal income tax purposes.
The gross unrealized appreciation and depreciation on investments at the
period ended December 31, 1995, were as follows:
12/31/95
-------------------------------------------------
Net Unrealized
Appreciation
Appreciation (Depreciation) (Depreciation)
The AAL International Fund $838,509 $(532,677) $305,832
<PAGE>
NOTES TO FINANCIAL STATEMENTS--(Continued)
- -------------------------------------------------------------------------------
(E) TRUST TRANSACTIONS
Transactions in trust shares were as follows:
The AAL International Fund
-------------------------------------------
Period Ended
12/31/95
-------------------------------------------
Shares purchased 2,520,620
Income dividends reinvested 5,687
Capital gains reinvested --------
Shares redeemed (21,358)
Net increase of trust shares 2,504,949
As of December 31, 1995, the Fund had entered into forward currency
contracts, as summarized above, resulting in net unrealized appreciation of
$52,750.
<TABLE>
<CAPTION>
CURRENCY U.S. VALUE AT
FORWARD CONTRACTS TO BE DELIVERED DECEMBER 31, 1995
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
<S> <C> <C>
French Franc for delivery
February 9, 1996....................... 3,500,000 $ 716,186
French Franc for delivery
April 5, 1996.......................... 8,315,000 1,702,777
French Franc for delivery
July 11, 1996.......................... 1,807,000 370,249
German Deutsche Mark for delivery
February 9, 1996....................... 250,000 174,984
German Deutsche Mark for delivery
April 4, 1996.......................... 1,480,000 1,038,742
German Deutsche Mark for delivery
July 3, 1996........................... 93,000 65,558
Japanese Yen for delivery
February 9, 1996....................... 75,000,000 730,762
Japanese Yen for delivery
April 4, 1996.......................... 226,250,000 2,221,404
Japanese Yen for delivery
July 18, 1996.......................... 23,000,000 228,947
Swiss Franc for delivery
February 9, 1996....................... 200,000 174,459
Swiss Franc for delivery
June 27, 1996.......................... 222,000 196,373
----------
$7,620,441
----------
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
U.S. VALUE AT
CURRENCY TO DECEMBER 31,
FORWARD CONTRACTS BE RECEIVED DUE DATE 1995
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
<S> <C> <C> <C>
Netherlands Guilder................... 198,700 1/2/96 $123,963
Canadian Dollar....................... 83,805 1/2/96 61,450
French Franc.......................... 191,809 1/3/96 39,222
German Deutsche Mark.................. 94,552 1/4/96 66,065
Swiss Franc........................... 34,352 1/4/96 29,856
Japanese Yen.......................... 10,686,441 1/5/96 103,599
French Franc.......................... 365,894 1/31/96 74,820
--------
$498,975
--------
</TABLE>
The accompanying notes to financial statements are an integral part of this
schedule.
<PAGE>
PART C - OTHER INFORMATION
In response to Part C of Form N-1A, the Registrant hereby incorporates by
reference the Part C - Other Information included in its Post-Effective
Amendment No. 13 to its Registration Statement on Form N-1A (Registration No.
33-12911), as filed with the Securities and Exchange Commission on May 16, 1995.
SIGNATURES
Pursuant to the requirements of the Securities Act of 1933 and the
Investment Company Act of 1940, the Registrant certifies that this filing meets
the requirements of Rule 485(b) and has duly caused this amendment to its
Registration Statement to be signed on its behalf by the undersigned, thereto
duly authorized, in the City of Appleton and State of Wisconsin on the 10th day
of January, 1996.
<PAGE>
THE AAL MUTUAL FUNDS
By /s/JOHN H. PENDER
-------------------------
JOHN H. PENDER, PRESIDENT
Pursuant to the requirements of the Securities Act of 1933, this
amendment to the Registration Statement has been signed below by the following
persons in the capacities and on the date indicated.
/s/ JOHN H. PENDER TRUSTEE JANUARY 10, 1996
- -------------------------
JOHN H. PENDER
/s/ RICHARD L. GUNDERSON* TRUSTEE JANUARY 10, 1996
- -------------------------
RICHARD L. GUNDERSON
/s/ RICHARD L. GADY* TRUSTEE JANUARY 10, 1996
- -------------------------
RICHARD L. GADY
/s/ D. W. RUSSLER* TRUSTEE JANUARY 10, 1996
- -------------------------
D. W. RUSSLER
/s/ LAWRENCE M. WOODS* TRUSTEE JANUARY 10, 1996
- -------------------------
LAWRENCE M. WOODS
/s/ F. GREGORY CAMPBELL* TRUSTEE JANUARY 10, 1996
- -------------------------
F. GREGORY CAMPBELL
PRINCIPAL
/s/ TERRANCE P. GALLAGHER FINANCIAL & JANUARY 10, 1996
- ------------------------- ACCOUNTING
TERRANCE P. GALLAGHER OFFICER
*John H. Pender, by signing his name hereto, does hereby sign this document
on behalf of himself and each of the other above-named Trustees of The AAL
Mutual Funds, Pursuant to the powers of attorney duly executed by such persons.
/s/ JOHN H. PENDER January 10, 1996
- -------------------------
JOHN H. PENDER
Attorney-in-Fact
<PAGE>
POWER OF ATTORNEY
NOW ALL MEN BY THESE PRESENTS that the person whose signature appears below
constitutes John H. Pender to act as lawful attorney-in-fact and agent, with
full power of substitution and resubstitution, for such person and in such
person's name, place and stead, in any and all capacities, to sign any or all
amendments (including post-effective amendments) to the Registration Statement
on Form N-1A of The AAL Mutual Funds, and to the file the same, with all
exhibits thereto, and other documents in connection therewith, with the
Securities and Exchange Commission, granting unto said attorney-in-fact and
agent full power and authority to do and perform each and every act and thing
requisite and necessary to be done to all intents and purposes as such person
might or could do in person, hereby ratifying and confirming all that said
attorney-in-fact and agent, or his substitute or substitutes, may lawfully do
or cause to be done by virtue thereof.
/s/ Richard L. Gunderson
Richard L. Gunderson,
as Trustee, but not
individually
<PAGE>
POWER OF ATTORNEY
KNOW ALL MEN BY THESE PRESENTS that the person whose signature appears below
constitutes Richard L. Gunderson, to act as lawful attorney-in-fact and
agent, with full power of substitution and resubstitution, for such person and
in such person's name, place and stead, in any and all capacities, to sign any
or all amendments (including post-effective amendments) to the Registration
Statement on Form N-1A of The AAL Mutual Funds, and to the file the same, with
all exhibits thereto, and other documents in connection therewith, with the
Securities and Exchange Commission, granting unto said attorney-in-fact and
agent full power and authority to do and perform each and every act and thing
requisite and necessary to be done to all intents and purposes as such person
might or could do in person, hereby ratifying and confirming all that said
attorney-in-fact and agent, or his substitute or substitutes, may lawfully do
or cause to be done by virtue thereof.
/s/ John H. Pender
John H. Pender
as Trustee, but not
individually
<PAGE>
POWER OF ATTORNEY
KNOW ALL MEN BY THESE PRESENTS that the person whose signature appears below
constitutes John H. Pender to act as lawful attorney-in-fact and agent, with
full power of substitution and resubstitution, for such person and in such
person's name, place and stead, in any and all capacities, to sign any or all
amendments (including post-effective amendments) to the Registration Statement
on Form N-1A of The AAL Mutual Funds, and to the file the same, with all
exhibits thereto, and other documents in connection therewith, with the
Securities and Exchange Commission, granting unto said attorney-in-fact and
agent full power and authority to do and perform each and every act and thing
requisite and necessary to be done to all intents and purposes as such person
might or could do in person, hereby ratifying and confirming all that said
attorney-in-fact and agent, or his substitute or substitutes, may lawfully do
or cause to be done by virtue thereof.
/s/ D.W. Russler
D.W. Russler,
as Trustee, but not
individually
<PAGE>
POWER OF ATTORNEY
KNOW ALL MEN BY THESE PRESENTS that the person whose signature appears below
constitutes John H. Pender to act as lawful attorney-in-fact and agent, with
full power of substitution and resubstitution, for such person and in such
person's name, place and stead, in any and all capacities, to sign any or all
amendments (including post-effective amendments) to the Registration Statement
on Form N-1A of The AAL Mutual Funds, and to the file the same, with all
exhibits thereto, and other documents in connection therewith, with the
Securities and Exchange Commission, granting unto said attorney-in-fact and
agent full power and authority to do and perform each and every act and thing
requisite and necessary to be done to all intents and purposes as such person
might or could do in person, hereby ratifying and confirming all that said
attorney-in-fact and agent, or his substitute or substitutes, may lawfully do
or cause to be done by virtue thereof.
/s/ F. Gregory Campbell
F. Gregory Campbell,
as Trustee, but not
individually
<PAGE>
POWER OF ATTORNEY
KNOW ALL MEN BY THESE PRESENTS that the person whose signature appears below
constitutes John H. Pender to act as lawful attorney-in-fact and agent, with
full power of substitution and resubstitution, for such person and in such
person's name, place and stead, in any and all capacities, to sign any or all
amendments (including post-effective amendments) to the Registration Statement
on Form N-1A of The AAL Mutual Funds, and to the file the same, with all
exhibits thereto, and other documents in connection therewith, with the
Securities and Exchange Commission, granting unto said attorney-in-fact and
agent full power and authority to do and perform each and every act and thing
requisite and necessary to be done to all intents and purposes as such person
might or could do in person, hereby ratifying and confirming all that said
attorney-in-fact and agent, or his substitute or substitutes, may lawfully do
or cause to be done by virtue thereof.
/s/ Richard L. Gady
Richard L. Gady,
as Trustee, but not
individually
<PAGE>
POWER OF ATTORNEY
KNOW ALL MEN BY THESE PRESENTS that the person whose signature appears below
constitutes John H. Pender to act as lawful attorney-in-fact and agent, with
full power of substitution and resubstitution, for such person and in such
person's name, place and stead, in any and all capacities, to sign any or all
amendments (including post-effective amendments) to the Registration Statement
on Form N-1A of The AAL Mutual Funds, and to the file the same, with all
exhibits thereto, and other documents in connection therewith, with the
Securities and Exchange Commission, granting unto said attorney-in-fact and
agent full power and authority to do and perform each and every act and thing
requisite and necessary to be done to all intents and purposes as such person
might or could do in person, hereby ratifying and confirming all that said
attorney-in-fact and agent, or his substitute or substitutes, may lawfully do
or cause to be done by virtue thereof.
/s/ Lawrence M. Woods
Lawrence M. Woods,
as Trustee, but not
individually
