Semi-Annual Report
October 29, 1999
The AAL U.S. Government Zero
Coupon Target Fund Series 2001
The AAL U.S. Government Zero
Coupon Target Fund Series 2006
[AAL LOGO]
The AAL Mutual Funds
<PAGE>
President's Letter
[AAL LOGO]
The AAL Mutual Funds
October 29, 1999
Dear shareholder:
We are pleased to provide you with the updated semi-annual report for The AAL
U.S. Government Zero Coupon Target Funds. In addition to the Target Funds, which
are no longer open to investors, we also offer ten other diverse Funds
(available in Class A, B and I shares) to help you plan for your financial
future, including:
EQUITY-ORIENTED FUNDS*
- - The AAL Small Cap Stock Fund-Investing in Small Company Stocks
- - The AAL Mid Cap Stock Fund-Investing in Mid-Sized Company Stocks
- - The AAL International Fund-Investing in Foreign Stocks
- - The AAL Capital Growth Fund-Investing in Income-Producing Equity Securities
- - The AAL Balanced Fund-Investing in Stocks, Bonds and Money Market Instruments
INCOME-ORIENTED FUNDS*
- - The AAL High Yield Bond Fund-Investing in Below Investment Grade Bonds
- - The AAL Municipal Bond Fund-Investing in Investment Grade Municipal Bonds
- - The AAL Bond Fund-Investing in Investment Grade Bonds
- - The AAL Money Market Fund-Investing in Money Market Instruments
To invest in these Funds, you can either use new dollars to purchase shares, or
you can use our exchange privilege to exchange your current Target Fund shares
for those of another Fund-without additional sales charge. For more information
about these Funds and the exchange privilege, contact your local registered
representative or call Capital Connection(R) at (800) 553-6319 for your
complimentary prospectus kit.
Thank you again for your continued confidence in The AAL Mutual Funds. We look
forward to serving you again in the near future.
Sincerely,
/s/Bob Same
Bob Same
President
The AAL Mutual Funds
*The prospectus contains more complete information about The AAL Mutual Funds,
including charges and expenses. You should read the prospectus carefully before
you invest or send money.
<PAGE>
Value of a $10,000 Investment
Including 4.75% Sales Charge
[LINE CHART APPEARS HERE]
TARGET FUND TARGET FUND LEHMAN BROTHERS
DATE SERIES 2001 SERIES 2006 AGGREGATE BOND INCEX
14-Nov-90 9,523.81 9,523.81 10,000.00
30-Nov-90 9,676.19 9,733.33 10,078.55
31-Dec-90 9,894.55 10,021.66 10,235.78
31-Jan-91 9,913.78 9,915.87 10,362.70
28-Feb-91 9,904.17 9,944.72 10,450.78
29-Mar-91 9,856.09 9,887.01 10,522.89
30-Apr-91 9,856.09 9,915.87 10,636.54
31-May-91 9,740.70 9,704.28 10,698.23
28-Jun-91 9,586.85 9,473.45 10,692.88
31-Jul-91 9,683.01 9,579.25 10,841.51
30-Aug-91 10,000.32 9,983.19 11,075.69
30-Sep-91 10,365.72 10,406.37 11,300.53
31-Oct-91 10,317.64 10,319.81 11,425.96
30-Nov-91 10,413.80 10,310.19 11,531.08
31-Dec-91 11,868.69 11,957.50 11,873.55
31-Jan-92 11,247.84 11,270.64 11,712.07
28-Feb-92 11,216.80 11,176.98 11,788.20
31-Mar-92 10,989.15 11,000.07 11,722.19
30-Apr-92 10,978.80 10,843.96 11,806.59
31-May-92 11,175.41 11,218.61 12,029.73
30-Jun-92 11,413.40 11,301.86 12,195.74
31-Jul-92 11,879.04 11,978.31 12,444.54
31-Aug-92 11,972.17 12,019.94 12,570.23
30-Sep-92 12,282.60 12,311.33 12,719.81
30-Oct-92 11,848.00 11,666.11 12,550.64
30-Nov-92 11,641.05 11,697.33 12,553.15
31-Dec-92 12,702.84 12,983.71 12,752.74
29-Jan-93 13,023.45 13,328.91 12,997.60
26-Feb-93 13,532.01 14,041.56 13,225.05
31-Mar-93 13,520.95 13,919.08 13,280.60
30-Apr-93 13,543.06 13,941.35 13,373.56
28-May-93 13,443.56 13,907.94 13,390.95
30-Jun-93 13,841.56 14,553.79 13,633.33
30-Jul-93 14,033.81 15,025.08 13,711.04
31-Aug-93 14,421.18 15,572.87 13,950.98
30-Sep-93 14,520.79 15,762.92 13,988.65
29-Oct-93 14,498.66 15,762.92 14,040.40
30-Nov-93 14,000.61 14,958.01 13,921.06
31-Dec-93 14,861.31 15,941.32 13,996.23
31-Jan-94 15,052.99 16,373.19 14,185.18
28-Feb-94 14,362.96 15,268.10 13,938.36
31-Mar-94 13,724.03 14,251.92 13,594.08
29-Apr-94 13,468.47 13,921.66 13,485.33
31-May-94 13,379.02 13,832.75 13,483.98
30-Jun-94 13,225.68 13,515.19 13,454.32
29-Jul-94 13,468.47 13,959.77 13,722.06
31-Aug-94 13,353.46 13,769.23 13,738.53
30-Sep-94 12,982.89 13,108.72 13,536.57
31-Oct-94 12,803.99 12,918.18 13,524.39
30-Nov-94 12,688.98 12,956.29 13,494.63
30-Dec-94 13,580.66 14,112.16 13,587.75
31-Jan-95 13,788.74 14,431.63 13,856.78
28-Feb-95 14,260.38 14,945.56 14,186.57
31-Mar-95 14,232.64 14,959.45 14,273.11
28-Apr-95 14,385.23 15,181.68 14,472.94
31-May-95 15,148.19 16,542.90 15,033.04
30-Jun-95 15,217.55 16,681.80 15,142.78
31-Jul-95 14,981.73 16,237.32 15,109.47
31-Aug-95 15,106.57 16,529.01 15,292.29
29-Sep-95 15,175.93 16,779.03 15,440.63
31-Oct-95 15,384.01 17,181.83 15,641.35
30-Nov-95 15,605.96 17,626.31 15,875.97
29-Dec-95 16,679.50 19,063.04 16,098.24
31-Jan-96 16,753.83 18,958.46 16,204.49
29-Feb-96 16,248.39 17,837.98 15,922.53
29-Mar-96 15,951.07 17,389.79 15,811.07
30-Apr-96 15,683.48 16,926.66 15,722.53
31-May-96 15,490.23 16,672.69 15,691.08
28-Jun-96 15,638.89 16,971.48 15,901.34
31-Jul-96 15,564.56 16,851.96 15,944.28
30-Aug-96 15,445.63 16,538.23 15,917.17
30-Sep-96 15,638.89 16,941.60 16,194.13
31-Oct-96 15,965.94 17,584.01 16,553.64
29-Nov-96 16,174.06 18,106.90 16,836.71
31-Dec-96 16,828.07 18,622.52 16,680.13
31-Jan-97 16,780.31 18,413.45 16,731.83
28-Feb-97 16,684.79 18,284.80 16,773.66
31-Mar-97 16,398.22 17,721.95 16,587.48
30-Apr-97 16,525.58 18,075.74 16,836.29
30-May-97 16,589.26 18,156.15 16,996.23
30-Jun-97 16,652.95 18,349.13 17,198.49
31-Jul-97 17,003.20 19,281.86 17,662.85
29-Aug-97 16,748.47 18,654.68 17,512.71
30-Sep-97 16,875.83 19,040.64 17,771.90
31-Oct-97 17,035.04 19,507.01 18,029.59
28-Nov-97 16,971.36 19,507.01 18,112.53
31-Dec-97 18,041.22 20,844.65 18,295.47
30-Jan-98 18,245.08 21,222.40 18,529.65
27-Feb-98 18,092.19 20,982.01 18,514.83
31-Mar-98 18,024.23 20,878.99 18,577.78
30-Apr-98 18,024.23 20,827.48 18,674.38
29-May-98 18,075.20 21,119.37 18,851.79
30-Jun-98 18,092.19 21,308.25 19,012.03
31-Jul-98 18,041.22 21,170.88 19,051.95
31-Aug-98 18,347.01 21,995.06 19,362.50
30-Sep-98 18,703.75 23,042.44 19,815.58
30-Oct-98 18,652.79 22,922.25 19,710.56
30-Nov-98 18,465.92 22,596.01 19,822.91
31-Dec-98 19,497.42 23,868.68 19,882.38
29-Jan-99 19,479.37 23,777.51 20,023.54
26-Feb-99 19,172.47 22,683.46 19,673.13
31-Mar-99 19,172.47 22,628.75 19,781.33
30-Apr-99 19,495.65 23,017.32 19,844.63
28-May-99 18,919.72 21,899.38 19,670.00
30-Jun-99 18,847.51 21,607.63 19,607.06
30-Jul-99 18,793.35 21,352.35 19,524.71
31-Aug-99 18,721.14 21,170.01 19,514.94
30-Sep-99 18,757.24 21,279.42 19,741.32
29-Oct-99 19,657.34 22,243.17 19,814.36
Average Annual Total Returns
Based on Net Amount Invested
The AAL U.S. Government Zero Coupon Target Funds As of October 29, 1999
1-Year 5-Year From Inception
Series 2001 0.57% 7.81% 8.42%
Series 2006 (7.02%) 10.23% 9.93%
SEC Standardized Returns As of September 30, 1999
1-Year 5-Year From Inception
Series 2001 0.59% 7.59% 8.48%
Series 2006 (7.08%) 10.05% 10.02%
Past performance is not an indication of future results. Investment return and
principal value will fluctuate, and shares, when redeemed, may be worth more or
less than their original cost.
<PAGE>
Schedule of Investments
Investment Objective
The Funds seek high investment return from U.S. government securities that
provide investors with a reasonable assurance that they will receive a target
dollar amount predictable at the time of investment.
The AAL U.S. Government Zero Coupon Target Fund Series 2001
SCHEDULE OF INVESTMENTS AS OF OCTOBER 29, 1999
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C>
Principal Yield to Maturity Market
Amount Long-Term Obligations (105.5%) Maturity Date Value
U.S. GOVERNMENT ZERO COUPON BONDS
$1,706,000 Separate Trading of Registered Interest
and Principal of Securities 5.79% 11/15/2001 $1,518,047
Total Long-Term Investments
(amortized cost basis $1,474,148) 1,518,047
Other Assets, less Liabilities (5.5%) (79,093)
NET ASSETS (100.0%) $1,438,954
The AAL U.S. Government Zero Coupon Target Fund Series 2006
SCHEDULE OF INVESTMENTS AS OF OCTOBER 29, 1999
Principal Yield to Maturity Market
Amount Long-Term Obligations (104.9%) Maturity Date Value
U.S. GOVERNMENT ZERO COUPON BONDS
$2,373,000 Separate Trading of Registered Interest
and Principal of Securities 6.25% 11/15/2006 $1,537,746
Total Long-Term Investments
(amortized cost basis $1,372,978) 1,537,746
Other Assets, less Liabilities (4.9%) (71,351)
NET ASSETS (100.0%) $1,466,395
</TABLE>
The accompanying notes to the financial statements are an integral part of this
schedule.
<PAGE>
Statement of Assets and Liabilities
(unaudited)
AS OF OCTOBER 29, 1999
The AAL U.S. Government Zero Coupon Target Funds
Series 2001 Series 2006
Assets
Investments, at value $1,518,047 $1,537,746
(Cost: $1,474,148 and $1,372,978, respectively)
Cash 2,062 6,213
Prepaid expenses 507 487
Total Assets $1,520,616 $1,544,446
Liabilities
Income distributions payable $74,579 $74,083
Accrued expenses 7,083 3,968
Total Liabilities $81,662 $78,051
Net Assets
Trust capital (beneficial interest) $1,390,952 $1,288,117
Accumulated undistributed net income (loss) 309 805
Net unrealized appreciation on investments 43,899 164,768
Accumulated net realized gain on investments 3,794 12,705
Total Net Assets $1,438,954 $1,466,395
Total Liabilities and Capital $1,520,616 $1,544,446
Shares of beneficial interest outstanding
(unlimited number of shares authorized) 138,875 126,322
Net asset value per share $10.36 $11.61
Maximum public offering price $10.88 $12.19
The accompanying notes to the financial statements are an integral part of this
statement.
<PAGE>
Statement of Operations
(unaudited)
FOR THE PERIOD ENDED OCTOBER 29, 1999
The AAL U.S. Government Zero Coupon Target Funds
Series 2001 Series 2006
Investment Income
Taxable interest $51,988 $52,240
Total Investment Income 51,988 52,240
Expenses
Audit and legal fees 2,095 1,864
Custodian fees 297 277
Administrative service fees 1,515 1,515
Printing and postage expense 508 518
SEC and state registration fees 335 337
Transfer agent fees 761 749
Trustees fees and expenses 2,329 2,329
Other expenses 34 41
Total Expenses 7,874 7,630
Less reimbursement from Adviser (562) (201)
Total Net Expenses 7,312 7,429
Net Investment Income 44,676 44,811
Realized and Unrealized Gains on Investments
Net realized gains on investments 1,860 1,991
Increase in unrealized appreciation
on investments (35,119) (101,005)
Net Realized & Unrealized Gains/(Losses)
on Investments (33,259) (99,014)
Net Increase/Decrease in Net Assets Resulting
from Operations $11,417 ($54,203)
The accompanying notes to the financial statements are an integral part of this
statement.
<PAGE>
Statement of Changes in Net Assets
(unaudited)
The AAL U.S. Government Zero Coupon Target Funds
<TABLE>
<CAPTION>
Series 2001 Series 2006
Year Period Year Period
Ended Ended Ended Ended
4/30/99 10/29/99 4/30/99 10/29/99
Operations
<S> <C> <C> <C> <C>
Net investment income $90,363 $44,676 $88,775 $44,811
Net realized gains on investments 2,875 1,860 20,752 1,991
Increase (decrease) in unrealized
appreciation on investments (844) (35,119) 20,646 (101,005)
Net Increase (Decrease) in Net Assets
Resulting from Operations 92,394 11,417 130,173 (54,203)
Distributions to Shareholders
Dividends from net investment income (90,363) (44,676) (88,775) (44,811)
Capital gains distributions (5,518) - (12,850) -
Total Distributions to Shareholders (95,881) (44,676) (101,625) (44,811)
Trust Shares Transactions
Income dividends reinvested 90,282 - 85,754 -
Capital gains distributions reinvested 5,483 - 12,747 -
Redemption of trust shares (71,431) (73,630) (168,234) (9,351)
Net Increase (Decrease) in Trust Capital 24,334 (73,630) (69,733) (9,351)
Net Increase (Decrease) in Net Assets 20,847 (106,889) (41,185) (108,365)
Net Assets Beginning of Period 1,524,996 1,545,843 1,615,945 1,574,760
Net Assets End of Period $1,545,843 $1,438,954 $1,574,760 $1,466,395
</TABLE>
The accompanying notes to the financial statements are an integral part of this
statement.
<PAGE>
Notes to Financial Statements
AS OF OCTOBER 29, 1999
A: Organization
The AAL Mutual Funds (the "Trust") was organized as a Massachusetts Business
Trust on March 31, 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, and currently consists of The AAL Small Cap Stock, Mid Cap
Stock, International, Capital Growth, Equity Income, Balanced, High Yield Bond,
Municipal Bond, Bond, Money Market and U.S. Government Zero Coupon Target Funds.
The twelve AAL Mutual Funds are collectively referred to as the "Funds."
On November 14, 1990, The AAL U.S. Government Zero Coupon Target Funds Series
2001 and 2006 commenced operations. Effective June 1, 1993, the Board of
Trustees of The AAL Mutual Funds closed The AAL U.S. Government Zero Coupon
Target Funds Series 2001 and 2006 to new shareholders and to additional
purchases of shares by existing shareholders.
B: Significant Accounting Policies
The Funds' principal accounting policies are:
Valuation-Securities traded on national securities exchanges are valued at last
reported sales prices. All other securities are valued at the latest bid
quotation if such quotations are readily available. Otherwise, such securities
are valued at a fair value as determined in good faith by the Investment Adviser
under supervision of the Board of Trustees.
Federal Income Taxes-Each Fund intends to comply with the requirements of the
Internal Revenue Code which are applicable to regulated investment companies and
to distribute substantially all of their taxable income to their shareholders.
The Funds accordingly anticipate paying no Federal income taxes and no Federal
income tax provision was required.
Distributions to Shareholders-Net investment income is distributed to each
shareholder as a dividend. Dividends from the Target Funds are declared daily
and distributed annually. Net realized gains from securities transactions, if
any, are distributed at least annually in the calendar year.
Other-For financial statement purposes, investment security transactions are
accounted for on trade date. Interest income is recognized on an accrual basis.
Discount is amortized over the life of the respective bonds. Realized gains or
losses on sales are determined on a specific cost identification basis.
Generally accepted accounting principles require permanent financial reporting
and tax differences be reclassified to trust capital.
Use of Estimates-The preparation of financial statements in conformity with
generally accepted accounting principles requires management to make estimates
and assumptions that affect the reported amounts of assets and liabilities and
disclosure of contingent assets and liabilities at the date of the financial
statements and the reported amounts of revenues and expenses during the
reporting period. Actual results could differ from these estimates.
<PAGE>
Notes to Financial Statements - continued
AS OF OCTOBER 29, 1999
C: Investment Advisory Management Fees and Transactions with Related Parties
The Trust has entered into an Investment Advisory Agreement with AAL Capital
Management Corporation (the "Adviser") under which the two separate Target Fund
portfolios pay a fee for investment advisory services. The annual rate of fees
under the Investment Advisory Agreement are calculated at: 0.50 of 1% of the
average daily net assets of The AAL U.S. Government Zero Coupon Target Funds
Series 2001 and Series 2006. Payments under the Investment Advisory Agreement
were discontinued effective July 1, 1993. For the period May 1, 1995, through
October 31, 1995, the Adviser entered into a sub-advisory agreement with Duff &
Phelps Investment Management Co. (the "Sub-Adviser"). The sub-advisory fee,
which was paid by the Adviser, was equal to: 0.10 of 1% of the average daily net
assets for The AAL U.S. Government Zero Coupon Target Funds. Effective November
1, 1995, the sub-advisory agreement was terminated.
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 sales activities relating to the
distribution of shares to investors. Payments under the Plan are equal to a
maximum of 0.10 of 1% of average daily net assets. Payments under the Plan were
discontinued effective July 1, 1993.
Trustees of the Trust not affiliated with AAL or the Adviser received $4,727 in
fees for fiscal 1999-2000 from the Target Funds. No remuneration has been paid
by the Trust to any of the officers or affiliated Trustees of the Trust. In
addition, the Trust reimbursed unaffiliated Trustees for reasonable expenses
incurred in relation to attendance at the meetings.
Each Fund 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 a Fund are allocated among the
Funds in proportion to the net assets, number of shareholder accounts, or other
reasonable basis of the respective Fund.
The Adviser voluntarily has reimbursed The AAL U.S. Government Zero Coupon
Target Funds for all expenses in excess of 1% of average daily net assets since
inception.
AAL is the ultimate parent company for AAL Capital Management Corporation.
<PAGE>
Notes to Financial Statements - continued
AS OF OCTOBER 29, 1999
D: Security Transactions
During the year ended April 30, 1999, and the period ended October 29, 1999,
purchases and sales of securities other than short-term obligations were as
follows:
Purchases Sales
4/30/99 10/29/99 4/30/99 10/29/99
Series 2001 $-- $-- $91,650 $78,842
Series 2006 -- -- 189,275 22,623
All purchases and sales of The AAL U.S. Government Zero Coupon Target Funds were
in U.S. government obligations.
Cost of investments is substantially the same for financial reporting purposes
and Federal income tax purposes.
The gross unrealized appreciation on investments at April 30, 1999, and October
29, 1999, were as follows:
<TABLE>
<CAPTION>
4/30/99 10/29/99
Net Unrealized Net Unrealized
Appreciation (Depreciation) Appreciation Appreciation (Depreciation) Appreciation
<S> <C> <C> <C> <C> <C> <C>
Series 2001 $ 79,018 $-- $ 79,018 $ 43,899 $-- $ 43,899
Series 2006 265,773 -- 265,773 164,768 -- 164,768
</TABLE>
E: Trust Transactions
Transactions in trust shares for the year ended April 30, 1999, and period ended
October 29, 1999, were as follows:
Series 2001 Series 2006
4/30/99 10/29/99 4/30/99 10/29/99
Shares purchased -- -- -- --
Income dividends reinvested 8,359 -- 6,551 --
Capital gains reinvested. 505 -- 968 --
Shares redeemed (6,692) (7,033) (13,631) (778)
Net Increase (Decrease)
of Trust Shares 2,172 (7,033) (6,112) (778)
<PAGE>
Financial Highlights
PER SHARE INFORMATION
Series 2001
<TABLE>
<CAPTION>
Year Year Year Year Year Period
Ended Ended Ended Ended Ended Ended
4/30/95 4/30/96 4/30/97 4/30/98 4/30/99 10/29/99
<S> <C> <C> <C> <C> <C> <C>
Net asset value: beginning of period. $10.54 $10.37 $10.55 $10.38 $10.61 $10.59
Income from Investment Operations
Net investment income 0.66 0.65 0.64 0.63 0.64 0.32
Net realized and unrealized gain (loss)
on investments -- 0.33 (0.07) 0.30 0.02 (0.23)
Total from Investment Operations 0.66 0.98 0.57 0.93 0.66 0.09
Distributions from:
Net investment income (0.66) (0.76) (0.64) (0.63) (0.64) (0.32)
Net realized capital gains (0.17) (0.04) (0.10) (0.07) (0.04) --
Total Distributions (0.83) (0.80) (0.74) (0.70) (0.68) (0.32)
Net increase (decrease) in net asset value (0.17) 0.18 (0.17) 0.23 (0.02) (0.23)
Net asset value: end of period $10.37 $10.55 $10.38 $10.61 $10.59 $10.36
Total return (c) 6.82% 9.23% 5.42% 9.17% 6.23% 2.82%
Net assets: end of period (in thousands) $1,755 $1,811 $1,711 $1,525 $1,546 $1,439
Ratio of expenses to average net assets (a) 1.00% 1.00% 0.97% 0.77% 1.00% 1.00%
Ratio of net investment income
to average net assets (b) 6.50% 5.84% 6.08% 6.16% 5.88% 6.13%
Portfolio turnover rate 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%
</TABLE>
(a) Computed after giving effect to Adviser's expense limitation undertaking. If
the Funds had paid all of their expenses, the ratio would have been as follows:
Year Year Year Year Year Period
Ended Ended Ended Ended Ended Ended
4/30/95 4/30/96 4/30/97 4/30/98 4/30/99 10/29/99
Series 2001 2.00% 1.74% 0.99% 0.84% 1.00% 1.08%
Series 2006 2.49% 2.07% 1.17% 0.90% 0.97% 1.03%
<PAGE>
Financial Highlights - continued
PER SHARE INFORMATION
Series 2006
<TABLE>
<CAPTION>
Year Year Year Year Year Period
Ended Ended Ended Ended Ended Ended
4/30/95 4/30/96 4/30/97 4/30/98 4/30/99 10/29/99
<S> <C> <C> <C> <C> <C> <C>
$10.96 $10.93 $11.33 $11.24 $12.13 $12.39
0.73 0.71 0.71 0.70 0.71 0.36
0.18 0.65 0.08 1.00 0.36 (0.78)
0.91 1.36 0.79 1.70 1.07 (0.42)
(0.73) (0.87) (0.71) (0.70) (0.71) (0.36)
(0.21) (0.09) (0.17) (0.11) (0.10) --
(0.94) (0.96) (0.88) (0.81) (0.81) (0.36)
(0.03) 0.40 (0.09) 0.89 0.26 (0.78)
$10.93 $11.33 $11.24 $12.13 $12.39 $11.61
9.05% 11.80% 6.84% 15.30% 8.69% (1.55%)
$1,400 $1,480 $1,453 $1,616 $1,575 $1,466
1.00% 1.00% 1.00% 0.82% 0.97% 1.00%
6.95% 5.83% 6.22% 6.03% 5.51% 6.05%
0.00% 0.00% 0.00% 0.00% 0.00% 0.00%
</TABLE>
(b) If the Funds had paid all of their expenses the ratio of net investment
income to average assets would have been as follows:
Year Year Year Year Year Period
Ended Ended Ended Ended Ended Ended
4/30/95 4/30/96 4/30/97 4/30/98 4/30/99 10/29/99
Series 2001 5.51% 5.10% 6.07% 6.10% 5.88% 6.06%
Series 2006 5.46% 4.76% 6.04% 5.96% 5.51% 6.08%
(c) Total returns are based on net amount invested. Periods less than one year
are not annualized.
<PAGE>
Board John O. Gilbert-Chairman of the Board
of F. Gregory Campbell
Trustees Woodrow E. Eno
Richard L. Gady
John H. Pender
Edward W. Smeds
Lawrence M. Woods
Officers Robert G. Same President
James H. Abitz Vice-President
Woodrow E. Eno Vice-President
Charles D. Gariboldi Treasurer
Fredrick D. Kelsven Secretary
Investment AAL Capital Management Corporation
Adviser & 222 West College Avenue
Distributor Appleton, WI 54919-0007
Custodian Citibank, N.A.
111 Wall Street
New York, NY 10043
Transfer Agent & Firstar Trust Company
Disbursing Agent 615 East Michigan Street
P.O. Box 2981
Milwaukee, WI 53201-2981
Legal Quarles & Brady
Counsel 411 East Wisconsin Avenue
Milwaukee, WI 53202
Independent PricewaterhouseCoopers LLP
Accountants Suite 1500
100 East Wisconsin Avenue
Milwaukee, WI 53202
[AAL LOGO]
The AAL Mutual Funds
222 West College Avenue, Appleton, WI 54919-0007
800-553-6319
www.aal.org
email: [email protected]
