Please file this prospectus supplement with your records
The AAL Mutual Funds
Supplement dated March 17, 1997, to the Prospectus dated January 8, 1997, for
The AAL Mutual Funds (The AAL Smaller Company Stock Fund, The AAL Capital Growth
Fund, The AAL Mid Cap Stock Fund, The AAL Small Cap Stock Fund, The AAL
International Fund, The AAL Utilities Fund, The AAL High Yield Bond Fund, The
AAL Bond Fund, The AAL Municipal Bond Fund and The AAL Money Market Fund).
Effective March 17, 1997 Michael R. Hochholzer, CFA, manages the day-to-day
investments of the AAL Mid Cap Stock Fund. From 1989 through March, 1997
Mr. Hochholzer had been a securities analyst and portfolio manager for Aid
Association for Lutherans, the parent company of AAL Capital Management
Corporation.
You may purchase Class B shares of The AAL Money Market Fund at Net Asset
Value subject to a contingent deferred sales charge. This supersedes all
prospectus language that limits purchases to exchanges of other Class B
shares. Because of the higher expenses of Class B shares, you should only
consider purchasing these shares if you intend to exchange them for other
Class B shares or as part of The Capital Builder Plan (see page 29).
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Supplement dated March 17, 1997, to the Statement of Additional Information
dated January 8, 1997, for The AAL Mutual Funds (The AAL Smaller Company Stock
Fund, The AAL Capital Growth Fund, The AAL Mid Cap Stock Fund, The AAL Small Cap
Stock Fund, The AAL International Fund, The AAL Utilities Fund, The AAL High
Yield Bond Fund, The AAL Bond Fund, The AAL Municipal Bond Fund and The AAL
Money Market Fund), amending and restating the paragraph entitled "Foreign
Securities - The AAL Capital Growth Fund, Mid Cap Stock, Small Cap Stock and
Bond Funds" found on page 29, to read as follows:
The AAL Capital Growth Fund, Mid Cap Stock and Small Cap Stock Funds may
invest in foreign securities, but only if such securities are listed and
traded on a national securities exchange. These Funds do not intend to
invest in more than 5% of their net assets in such foreign securities. The
AAL Bond Fund may invest up to 20% of its net assets in debt securities of
foreign issuers that are payable in U.S. dollars. Foreign securities may
present a greater degree of risk (including risks related to tax provisions
or appropriation of assets) than do securities of domestic issuers.
Effective February 14, 1997, Robert G. Same is now Executive Vice President and
Chief Operating Officer of AAL Capital Management Corporation. Effective
February 26, 1997, Ronald G. Anderson is President of The Funds and of AAL
Capital Management Corporation.
