<PAGE>
AAHSA TRUST
MONEY MARKET FUND
SCHEDULE OF INVESTMENTS
MARCH 31, 1997
(UNAUDITED)
<TABLE>
<CAPTION>
NAME OF ISSUER INTEREST MATURITY PRINCIPAL AMORTIZED
AND TITLE OF ISSUE RATE DATE AMOUNT COST
- ------------------ ---- ---- ------ ----
<S> <C> <C> <C> <C>
U.S. GOVERNMENT &
AGENCY OBLIGATIONS--97.3%
GOVERNMENT OBLIGATIONS--7.8%
United States Treasury Notes . . . . . . . . . . . . . . . 5.000% 01/31/1998 $ 140,000 $ 139,237
----------
Total Government Obligations--
(Cost $139,237). . . . . . . . . . . . . . . . . . . . . 139,237
----------
GOVERNMENT AGENCY OBLIGATIONS--89.5%
Federal Home Loan Bank (a) . . . . . . . . . . . . . . . . 5.720% 10/15/1997 60,000 60,052
Federal National Mortgage Association (a). . . . . . . . . 5.550% 06/02/1999 350,000 348,401
Federal National Mortgage Association (a). . . . . . . . . 5.615% 04/21/1997 55,000 54,995
Student Loan Marketing Association (a) . . . . . . . . . . 5.600% 09/28/1998 500,000 499,252
Student Loan Marketing Association (a) . . . . . . . . . . 5.600% 11/10/1998 445,000 444,234
Student Loan Marketing Association (a) . . . . . . . . . . 5.610% 02/22/1999 100,000 99,782
Student Loan Marketing Association (a) . . . . . . . . . . 5.670% 03/07/2001 100,000 99,632
----------
Total Government Agency Obligations--
(Cost $1,606,348). . . . . . . . . . . . . . . . . . . . 1,606,348
----------
TOTAL INVESTMENTS--
(Cost $1,745,585) (b). . . . . . . . . . . . . . . . . . . 1,745,585
OTHER ASSETS LESS LIABILITIES--2.7%. . . . . . . . . . . . . 48,926
----------
NET ASSETS--100.0% . . . . . . . . . . . . . . . . . . . . . $1,794,511
----------
----------
</TABLE>
(a) Floating Rate Note - Interest rate shown is rate in effect at March 31,
1997.
(b) Cost for federal income tax purposes is the same.
See Notes to Financial Statements.
<PAGE>
AASHA TRUST MONEY MARKET FUND
STATEMENT OF ASSETS AND LIABILITIES
MARCH 31, 1997 (UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
<S> <C>
ASSETS:
Investments in securities, at amortized cost . . . . . . . . . . . . . . . $ 1,745,585
Cash . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25,038
Interest receivable. . . . . . . . . . . . . . . . . . . . . . . . . . . . 14,086
Deferred organization expense. . . . . . . . . . . . . . . . . . . . . . . 9,285
Prepaid expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12,015
Receivable for reimbursable expenses . . . . . . . . . . . . . . . . . . . 11,856
-----------
Total Assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,817,865
-----------
LIABILITIES:
Transfer agent fee payable . . . . . . . . . . . . . . . . . . . . . . . . 3,936
Distribution fee payable . . . . . . . . . . . . . . . . . . . . . . . . . 159
Other accrued expenses and liabilities . . . . . . . . . . . . . . . . . . 19,259
-----------
Total Liabilities. . . . . . . . . . . . . . . . . . . . . . . . . . 23,354
-----------
NET ASSETS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 1,794,511
-----------
NET ASSETS CONSIST OF:
Capital Stock, $.01 par value;
1,794,644 shares issued and outstanding;
unlimited number of shares authorized . . . . . . . . . . . . . . . . . 17,946
Capital paid in excess of par. . . . . . . . . . . . . . . . . . . . . . . 1,776,565
-----------
NET ASSETS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 1,794,511
-----------
Net asset value, offering, and redemption price per share. . . . . . . . . $ 1.00
-----------
</TABLE>
See Notes to Financial Statements.
<PAGE>
AASHA TRUST MONEY MARKET FUND
STATEMENT OF OPERATIONS
FOR THE PERIOD NOVEMBER 27, 1996* THROUGH MARCH 31, 1997 (UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
<S> <C>
INVESTMENT INCOME:
Interest . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 27,569
----------
EXPENSES:
Investment Management fee. . . . . . . . . . . . . . . . . . . . . . . . . 1,322
Sub Administration fee . . . . . . . . . . . . . . . . . . . . . . . . . . 368
Professional fees. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6,862
Custodian fee. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 443
Insurance expense. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,739
Printing expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,019
Registration fees. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,139
Distribution fees. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 318
Transfer agent fee . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,530
Miscellaneous expenses . . . . . . . . . . . . . . . . . . . . . . . . . . 941
----------
Total expenses before waiver/reimbursement. . . . . . . . . . . . . . . 25,681
----------
Expenses waived/reimbursed (Note 3) . . . . . . . . . . . . . . . . . . (23,440)
----------
Expenses, net of waiver/reimbursement . . . . . . . . . . . . . . . . . 2,241
----------
Net investment income. . . . . . . . . . . . . . . . . . . . . . . . . . . $ 25,328
----------
Net realized loss on investments . . . . . . . . . . . . . . . . . . . . . (133)
----------
Net increase in net assets resulting from operations . . . . . . . . . . . $ 25,195
----------
</TABLE>
* Commencement of investment operations.
See Notes to Financial Statements.
<PAGE>
AASHA TRUST MONEY MARKET FUND
STATEMENT OF CHANGES IN NET ASSETS
FOR THE PERIOD NOVEMBER 27, 1996* THROUGH MARCH 31, 1997 (UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
<S> <C>
CHANGE IN NET ASSETS:
FROM OPERATIONS:
Net investment income. . . . . . . . . . . . . . . . . . . . . . . . . . . $ 25,328
Net realized loss on investments . . . . . . . . . . . . . . . . . . . . . (133)
-----------
Net increase in net assets from operations. . . . . . . . . . . . . . . 25,195
-----------
FROM DISTRIBUTIONS:
Net investment income. . . . . . . . . . . . . . . . . . . . . . . . . . . (25,328)
-----------
Net decrease in net assets from distributions . . . . . . . . . . . . . (25,328)
-----------
FROM FUND SHARE TRANSACTIONS (AT CONSTANT $1.00 PER SHARE):
Proceeds from shares sold. . . . . . . . . . . . . . . . . . . . . . . . . 1,830,666
Issued to shareholders in reinvestment of dividends. . . . . . . . . . . . 18,978
Cost of redemptions. . . . . . . . . . . . . . . . . . . . . . . . . . . . (160,000)
-----------
Net increase in net assets from Fund share transactions . . . . . . . . 1,689,644
-----------
Net increase in net assets . . . . . . . . . . . . . . . . . . . . . . . . 1,689,511
-----------
NET ASSETS:
Beginning of period. . . . . . . . . . . . . . . . . . . . . . . . . . . . 105,000
-----------
End of period. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 1,794,511
-----------
</TABLE>
* Commencement of investment operations.
See Notes to Financial Statements.
<PAGE>
AAHSA TRUST MONEY MARKET FUND
FINANCIAL HIGHLIGHTS
FOR THE PERIOD NOVEMBER 27, 1996* THROUGH MARCH 31, 1997 (UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
<S> <C>
PER SHARE OPERATING PERFORMANCE:
Net asset value, beginning of period . . . . . . . . . . . . . . . . . . . $ 1.00
------
Net investment income . . . . . . . . . . . . . . . . . . . . . . . . . .02
Less distributions from net investment income . . . . . . . . . . . . . (.02)
------
Net asset value, end of period . . . . . . . . . . . . . . . . . . . . . . $ 1.00
------
TOTAL INVESTMENT RETURN (a). . . . . . . . . . . . . . . . . . . . . . . . 2.08%
RATIOS AND SUPPLEMENTAL DATA:
Ratio of operating expenses, net to average
daily net assets (b). . . . . . . . . . . . . . . . . . . . . . . . . . .45%
Ratio of operating expenses before expense reductions,**
to average daily net assets (b) . . . . . . . . . . . . . . . . . . . . 5.16%
Ratio of net investment income to average
daily net assets (b). . . . . . . . . . . . . . . . . . . . . . . . . . 5.09%
Net assets, end of period (in thousands) . . . . . . . . . . . . . . . . . $1,795
</TABLE>
* Commencement of investment operations.
(a) Total investment return is calculated assuming an initial investment made
at net asset value at the beginning of the period, reinvestment of all
dividends and distributions at net asset value during the period, and
redemption on the last day of the period. Total investment return for a
period of less than one year is not annualized.
(b) Annualized
** During the period certain fees and expenses were voluntarily waived and
reimbursed. If such voluntary expense reductions had not occurred, the
ratio would have been as indicated.
See Notes to Financial Statements.
<PAGE>
AAHSA TRUST MONEY MARKET FUND
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
- --------------------------------------------------------------------------------
(1) ORGANIZATION AND FUND DESCRIPTION
AAHSA Money Market Fund (the "Fund") is a series of AAHSA Trust (the
"Trust"). The Trust was organized as a Delaware business trust in July
1994 and is registered under the Investment Company Act of 1940, as
amended, as a diversified, open-end, management investment company. The
Fund's objective is to maximize current income, consistent with
stability of principal and preservation of capital, by investing in
high-quality money market securities.
(2) SIGNIFICANT ACCOUNTING POLICIES
The following is a summary of significant accounting policies
consistently followed by the Fund:
SECURITY VALUATION. The valuation of the Fund's portfolio instruments is
determined under the amortized cost method, which approximates market
value, as permitted in Rule 2a-7 under the Investment Company Act of
1940. The amortized cost of an instrument is determined by valuing it at
cost originally and thereafter amortizing any discount or premium to its
face value at a constant rate until maturity.
SECURITY TRANSACTIONS AND RELATED INVESTMENT INCOME. Securities
transactions are recorded on trade date. Realized gains and losses on
sales of securities are determined on the basis of identified cost.
Interest income is recorded on the accrual basis. Interest income is
increased by accretion of discount and reduced by amortization of
premium.
REPURCHASE AGREEMENTS. The Fund may utilize repurchase agreements
through which it purchases a security from a well established domestic
securities dealer or bank that is a member of the Federal Reserve
System. Under the agreement, the seller of the repurchase agreement
agrees to repurchase the underlying security at a mutually agreed time
and price. In these repurchase transactions, the underlying security is
held by the Fund's custodian as collateral and marked-to-market on a
daily basis to ensure full collateralization of the repurchase
agreement. The seller is required to maintain the collateral at value of
not less than the repurchase price, including accrued interest. In the
event of counterparty default, the Fund has the right to use the
collateral to offset losses incurred. There is a potential loss to the
Fund in the event the Fund is delayed or prevented from exercising its
rights to dispense of collateral securities including the risk of a
possible decline in the value of the underlying securities during the
period the Fund seeks to assert its rights.
FEDERAL INCOME TAXES. The Trust treats each Fund as a separate entity
for income tax purposes. The Fund intends to continue to qualify as a
regulated investment company by complying with the provisions of
Subchapter M of the Internal Revenue Code of 1986, as amended, and to
make distributions of net investment income and net realized capital
gains sufficient to relieve it from all or substantially all federal
income taxes.
ORGANIZATION EXPENSES. Costs incurred by the Trust in connection with
its organization have been deferred and are being amortized using the
straight line method over a period of five years beginning with the
commencement of each Fund's operations. All such costs have been
allocated equally to the funds of the Trust. If any or all of the shares
representing the initial capital of the Fund are redeemed prior to the
end of the amortization period, the redemption proceeds will be reduced
by the unamortized organizational expense balance in the same proportion
as the number of shares redeemed bears to the number of initial shares
outstanding immediately prior to redemption.
<PAGE>
AAHSA TRUST MONEY MARKET FUND
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
- --------------------------------------------------------------------------------
(2) SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS. Income dividends for the
Fund are declared daily and paid monthly. Distributions of capital gains
of the Fund, if any realized during the year, will be declared and
distributed, at least, annually. Income distributions and capital gain
distributions are determined in accordance with income tax regulations,
which may differ from generally accepted accounting principles.
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 disclosures 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 those estimates.
(3) FEES AND EXPENSES
On October 8, 1996, the Trust entered into an investment management
agreement with CRSA Investment Advisors, Inc., (CRSA) under which CRSA
supervises and directs the day-to-day operations of the Fund and
furnishes related equipment, research and personnel. The agreement
requires the Fund to pay CRSA a monthly fee of .22% per annum of the
Fund's average daily net assets. Prior to October 8, 1996, B. C. Ziegler
and Company (Ziegler) served as the Fund's investment manager. As the
Fund did not commence operations prior to the termination of this
agreement, no fees were paid to Ziegler under the previous investment
management agreement.
On October 8, 1996, a sub-advisory agreement was entered into by and
among CRSA, the Trust and Wainwright Asset Management (WAM) under which
WAM is responsible for the selection and management of the Fund's
portfolio investments. Under this agreement, WAM receives a monthly fee
of .11% per annum of the average daily net assets of the Fund payable by
CRSA. Prior to October 8, 1996, Federated Investment Counseling
(Federated) served as the Fund's sub-advisor. As the Fund did not
commence operations prior to the termination of this agreement, no fees
were paid to Federated under the previous sub-advisory agreement.
On October 8, 1996, the Trust entered into a distribution agreement with
H.C. Wainwright & Co., Inc. (Wainwright), in accordance with a
Distribution Plan adopted pursuant to Rule 12b-1 of the Investment
Company Act of 1940 (as amended). Under this agreement, Wainwright will
be compensated for expenses incurred in connection with the distribution
of Fund shares at an annualized rate of .03% of the Fund's average
daily net assets. The distribution plan provides for payment at an
annualized rate of .03% of the Fund's average daily net assets in those
instances in which no other recipient receives compensation pursuant to
the Distribution Plan, and at a rate not to exceed 0.20% of the Fund's
average daily net assets in those instances in which other recipients
receive compensation and/or reimbursement pursuant to the Distribution
Plan. Prior to October 8, 1996, Ziegler served as the Fund's Distributor
of the shares of the Fund. As the Fund did not commence operations prior
to the termination of this agreement, no fees were paid to Ziegler under
the previous distribution agreement.
AAHSA provides certain administrative services to the Trust pursuant to
a sub-administrative agreement. For its services, AAHSA will receive
from the Fund a fee equal to an annual rate of .07% of the Fund's
average daily net assets.
<PAGE>
AAHSA TRUST MONEY MARKET FUND
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
- --------------------------------------------------------------------------------
(3) FEES AND EXPENSES (CONTINUED)
On October 8, 1996, the Trust entered into Administrative, Transfer
Agent and Custodial Agreements with State Street Bank and Trust, Co.
(State Street). Under these agreements with the Trust, State Street
receives compensation for such services provided. Prior to October 8,
1996, Ziegler served as the Fund's Accounting Pricing Agent, Transfer
Agent and Dividend Disbursing Agent. As the Fund did not commence
operations prior to the termination of this agreement, no fees were paid
to Ziegler under the agreement.
In addition to the investment management fee, distribution fee,
administration fee, sub-administration fee, custodial fee, and transfer
agent fee, the Fund is responsible for paying all other operating
expenses including outside trustee expenses, registration fees, printing
and shareholder reports, legal, auditing, organizational expenses,
insurance and other miscellaneous expenses. Expenses directly related to
the Fund are charged directly to the Fund, while expenses which are
attributable to more than one fund of the Trust are allocated among the
funds.
The investment manager, sub-advisor and the sub-administrator have
agreed to waive or limit their fees and, in the case of the sub-
administrator, pay certain operating expenses to the extent necessary to
limit total Fund operating expenses to .45% of the average daily net
assets of the Fund. Any amounts waived or expenses paid are subject to
possible reimbursement to the investment manager, sub-advisor or the
sub-administrator by the Fund in future years, if such reimbursement can
be achieved within the foregoing expense limits and are approved by the
Board of Trustees of the AAHSA Trust.
For the period from November 27, 1996* through March 31, 1997, the
following fees were waived or reimbursed to the Fund:
INVESTMENT MANAGEMENT FEE:
Waived $ 1,322
SUB ADMINISTRATION FEE:
Waived 368
OTHER EXPENSES:
Reimbursed by Sub Administrator 21,750
--------
TOTAL FEES WAIVED/REIMBURSED: $ 23,440
--------
* Commencement of investment operations.
(4) BENEFICIAL INTEREST
At March 31, 1997, six shareholders individually owned over 5% of the
Fund's outstanding shares, amounting to 96% of total shares.
