<PAGE> 1
[AMERICAN AADVANTAGE MILEAGE FUNDS LOGO]
- Platinum Class(sm) -
P.O. Box 619003
Dallas/Fort Worth Airport, Texas
75261-9003
(800) 967-9009
- Mileage Class(R) -
P.O. Box 419643
Kansas City, Missouri 64141-6643
(800) 388-3344
This report is prepared for shareholders of the American
AAdvantage Mileage Funds and may be distributed to others
only if preceded or accompanied by a current prospectus.
SEMI-ANNUAL REPORT
APRIL 30, 1998
[AMERICAN AADVANTAGE MILEAGE FUNDS LOGO]
BALANCED MILEAGE FUND
GROWTH AND INCOME MILEAGE FUND
INTERMEDIATE BOND MILEAGE FUND
INTERNATIONAL EQUITY MILEAGE FUND
SHORT-TERM BOND MILEAGE FUND
MONEY MARKET MILEAGE FUND
MUNICIPAL MONEY MARKET MILEAGE FUND
U.S. GOVERNMENT MONEY MARKET MILEAGE FUND
MANAGED BY
AMR INVESTMENT SERVICES, INC.
<PAGE> 2
Dear Fellow Shareholder:
We are pleased to report to you on the performance of the American
AAdvantage Mileage Funds and provide you with a copy of the Semi-Annual Report
for the six months ended April 30, 1998.
The Domestic Equity Funds
Market Recap:
The equity markets soared during the six months ending April 30, 1998
fueled by low inflation, low interest rates, low unemployment, a federal budget
surplus, strong corporate profits and strong mutual fund inflows. The only
damper seems to have been the crisis in Asia, which rocked the U.S. equity
markets in October 1997 and has periodically affected the markets since that
time. After regaining lost ground due to the Asian situation, the Dow Jones
Industrial Average and the S&P 500 Index climbed to new highs, with the Dow
Jones Industrial Average breaking the 9000 mark in early April and posting a
gain of 22.81% for the six months. The S&P 500 Index lagged only slightly,
returning 22.46% for the six month period. Large cap stocks continue to
outperform the market with the momentum of well known growth stocks. Although
the U.S. markets have shown a strong resistance to the "Asian Flu," recent U.S.
stock market price volatility indicates that worried investors are closely
watching as developments unfold. Some fallout is expected as the year
progresses.
Performance Recap:
Balanced Fund
The Balanced Fund's total return for the six months ending April 30, 1998
was 11.75%, slightly lagging the Lipper Balanced Index total return of 12.27%.
The Fund modestly increased its holdings in stocks from 56.4% at October
31, 1997 to 59.4% at April 30, 1998, as the stock market's momentum continued to
surge higher. Also, as interest rates fell during the period, bond yields became
less attractive. The bond segment's 3.92% (7.90% annualized) return surpassed
the Lehman Corp/Govt Index return of 3.65% (7.36% annualized).
The momentum of the market favored growth stocks during the period. As a
result, the Fund's value investment style (purchasing stocks with lower than
market price-to-earnings ratios and higher than market growth rates) resulted in
stock selection much different than that of the S&P 500 Index. The Fund's stock
segment returned 18.42% for the six month period versus the S&P 500 Index return
of 22.46%. The Fund modestly underweighted communication services and
substantially underweighted technology, which were the top two performing
sectors in the S&P 500 Index. Stock selection in the consumer staples sector and
an overweighting in energy stocks also hurt performance as tobacco stocks and
oil prices continued to decline. On the other hand, the Fund overweighted
consumer cyclicals and financials which were above average performers in the S&P
500 Index. Banks and financial service companies continue to provide positive
earnings growth given cost savings resulting from industry consolidation.
Growth and Income Mileage Fund
The Growth and Income Mileage Fund's performance for the six months ending
April 30, 1998 was 16.83%, ending slightly below the Lipper Growth and Income
Index total return average of 17.07%.
Since the Fund utilizes the same investment managers and the same approach
to stock selection as the Balanced Fund, it also benefited from overweighted
positions in consumer cyclicals and financial
<PAGE> 3
stocks but suffered on a relative basis from the poor stock selection in
consumer staples sector and overweighting energy stocks.
International Equity Fund
Market Recap:
Despite the strong foreign market returns over the past six months, there
was a marked disparity among different countries and regions. European markets
were swept up in the euphoria of the European Monetary Union (EMU) and lower
interest rates which have driven investors into the equity markets. However the
Japanese market, despite strength early in 1998, remained disappointing as the
content of the latest stimulus package, combined with slumping economic growth
and an uncertain outcome to the region's crisis, negatively impacted investor
sentiment. Japan's return of approximately negative 10% for the six months ended
April 30, ranked it second to last, just ahead of Malaysia, among the 21 markets
that comprise the EAFE Index (the Morgan Stanley Capital International Europe,
Australia and Far East Index).
Performance Recap:
The International Equity Fund posted strong absolute results for the six
months ended April 30, 1998. The Fund's total return for the six month period
was 14.39% compared to a 16.58% return for the Lipper International Index.
The attractiveness of the market in the United Kingdom has led the Fund to
overweight the country as well as make the country the largest weighting in the
Fund. The Fund continues to underweight Germany, while overweighting the more
attractive smaller European markets. The Fund's 13% holdings in Japan represent
a large underweighting for the reasons previously noted.
The Bond Funds
Market Recap:
For the six month period ended April 30, 1998, the bond market was
mesmerized by the robust U.S. economic expansion, tight labor markets, the lack
of inflationary pressure and the Asian economic meltdown.
During this timeframe, the U.S. GDP expanded approximately 4.25%, created
1.7 million new nonfarm jobs and the unemployment rate dropped to 4.3%, a 28
year low. However, what made this period so remarkable was the economy's ability
to accomplish this prosperity without creating any serious inflation. Amazingly,
inflation at the wholesale level (PPI) registered declines in five of the six
months. This unprecedented economic performance caused the Chairman of the
Federal Reserve, Alan Greenspan, to comment that this is the best economic
period he has seen in his 50 year professional career.
As a result, the bond market performed well as short and long-term interest
rates declined, the yield curve flattened and corporate spreads remained tight.
Additionally, the crisis in Asia created a flight to quality which buoyed bond
prices further as U.S. dollar-denominated investments became more attractive
globally. The two year Treasury note ended the period yielding just seven basis
points higher than the overnight fed funds rate. The 30 year Treasury bond ended
the period yielding 5.95%, 20 basis points less than it did at the beginning of
the period. More recently, the yield curve has flattened even further as the 30
year Treasury bond reached a record low 5.57% yield. The Asian hangover and its
2
<PAGE> 4
longer term effect on U.S. economic prosperity continues to be a wild card which
bond traders suspect will slow down the economic momentum in the U.S. and
suppress future inflationary pressures.
Performance Recap:
Intermediate Bond Fund
The Intermediate Bond Fund's return for the two months since its inception
through April 30, 1998 was 1.05% (6.39% annualized) compared to 0.80% (4.79%
annualized) return for the Lipper Intermediate Investment Grade Debt Average for
the same period.
Short-Term Bond Fund
The Short-Term Bond Fund's annualized total return for the six months
ending April 30, 1998 was 3.13% (6.31% annualized), compared to the 2.63% (5.30%
annualized) return for its benchmark, the Linked Lipper Short-Term Investment
Grade Debt Average.
For the period, the duration of the Fund was largely neutral or long of its
benchmark, which had a slightly positive impact on the Fund's returns.
Additionally, the Fund realized incremental income by holding mortgage-backed
securities. On April 30, 1998, the portfolio's weighted average duration was 2.0
years.
The Money Market Funds
Market Recap:
During this period, the economy remained very strong with GDP growing 4.25%
for the period. Meanwhile, the unemployment rate dropped to its lowest level
since 1970, and consumer confidence reached its highest level since 1968.
Historically, strong economic momentum, low unemployment and high consumer
confidence levels have led to inflation. However, this time we experienced
wholesale deflation (prices declining), consumer disinflation (the rate of price
increases declining) and uncertainty in Asia, all of which enabled the Federal
Reserve to maintain steady interest rates with the Fed Funds rate at 5.50%.
The Funds displayed strong performance during this period by investing in
variable rate securities, several of which included daily, seven day or ninety
day demand features. Additionally, the Funds curtailed their exposure to issuers
with Asian implications, particularly Japanese banks, and continued to maintain
their "AAA" rating from Fitch IBCA, a Nationally Recognized Statistical Rating
Organization.
We believe the Fed will continue its steady monetary policy in the near
term and the Funds are well positioned to take advantage of these favorable
conditions for the remainder of 1998.
Performance Recap:
Money Market Fund
For the six month period ending April 30, 1998, the Fund's annualized total
return was 5.16%, outperforming its Lipper Benchmark, the Money Market
Instrument Funds' Average of 4.90%. During the same period, the Platinum Class
annualized total return was 4.74%.
3
<PAGE> 5
Municipal Money Market Fund
For the six month period ending April 30, 1998, the Fund achieved an
annualized total return of 3.23%, and outperformed its benchmark, the Lipper
Tax-Exempt Money Market Funds' Average, of 3.02%. Since its inception, the Fund
has invested exclusively in high credit worthy municipal issuers that have been
further credit enhanced by either a bank letter of credit of bond insurance.
U.S. Government Money Market Fund
For the six month period ending April 30, 1998, the Fund had an annualized
total return for the period of 5.16%, and outperformed its Lipper benchmark, the
Lipper U.S. Government Money Market Funds Average of 4.96%.
As always, we appreciate your confidence and support and we will continue
to strive to provide you with above average returns.
Sincerely,
/s/ WILLIAM F. QUINN
William F. Quinn
President
American AAdvantage Mileage Funds
4
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AMERICAN AADVANTAGE MILEAGE FUNDS
STATEMENTS OF ASSETS AND LIABILITIES
April 30, 1998 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Growth and Intermediate International Short-Term
Balanced Income Bond Equity Bond
-------- ---------- ------------ ------------- ----------
(in thousands, except share and per share amounts)
<S> <C> <C> <C> <C> <C>
ASSETS:
Investment in Portfolio, at value.......... $ 4,035 $ 11,368 $ 1 $ 5,671 $ 1,255
Receivable for fund shares sold............ - 3 - - -
Receivable for expense reimbursement (Note
2)....................................... 11 - 6 - 7
Deferred organization costs, net........... 5 5 - 5 5
-------- -------- ------ -------- --------
TOTAL ASSETS........................... 4,051 11,376 7 5,676 1,267
-------- -------- ------ -------- --------
LIABILITIES:
Payable for fund shares redeemed........... - 60 - - -
Accrued organization costs................. 9 8 - 8 8
Management fees payable (Note 2)........... 3 2 - 1 -
Other liabilities.......................... 18 27 6 15 11
-------- -------- ------ -------- --------
TOTAL LIABILITIES...................... 30 97 6 24 20
-------- -------- ------ -------- --------
NET ASSETS..................................... $ 4,021 $ 11,279 $ 1 $ 5,652 $ 1,247
======== ======== ====== ======== ========
ANALYSIS OF NET ASSETS:
Paid-in-capital............................ 3,274 7,501 1 4,287 1,287
Accumulated undistributed investment
income................................... 33 45 - 10 -
Accumulated net realized gain (loss)....... 470 974 - 158 (25)
Unrealized appreciation (depreciation) of
investments.............................. 244 2,759 - 1,197 (15)
-------- -------- ------ -------- --------
NET ASSETS..................................... $ 4,021 $ 11,279 $ 1 $ 5,652 $ 1,247
======== ======== ====== ======== ========
Shares outstanding (no par value).............. 216,410 436,907 101 291,125 130,047
======== ======== ====== ======== ========
Net asset value, offering and redemption price
per share.................................... $ 18.58 $ 25.82 $10.02 $ 19.41 $ 9.59
======== ======== ====== ======== ========
</TABLE>
See accompanying notes
6
<PAGE> 8
AMERICAN AADVANTAGE MILEAGE FUNDS
STATEMENTS OF ASSETS AND LIABILITIES - CONTINUED
April 30, 1998 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Money Municipal U.S. Government
Market Money Market Money Market
-------- ------------ ---------------
(in thousands, except share
and per share amounts)
<S> <C> <C> <C>
ASSETS:
Investment in Portfolio, at value....................... $175,433 $ 28,802 $ 33,139
Receivable for expense reimbursement (Note 2)........... 74 - 5
Deferred organization costs, net........................ 5 5 5
-------- ----------- -----------
TOTAL ASSETS........................................ 175,512 28,807 33,149
-------- ----------- -----------
LIABILITIES:
Accrued organization costs.............................. 8 8 8
Dividends payable....................................... 2 5 2
Management and administrative services fees payable
(Note 2).............................................. 48 1 1
Other liabilities....................................... 322 57 27
-------- ----------- -----------
TOTAL LIABILITIES................................... 380 71 38
-------- ----------- -----------
NET ASSETS.................................................. $175,132 $ 28,736 $ 33,111
======== =========== ===========
ANALYSIS OF NET ASSETS:
Paid-in-capital......................................... 175,132 28,736 33,111
-------- ----------- -----------
NET ASSETS.................................................. $175,132 $ 28,736 $ 33,111
======== =========== ===========
Shares outstanding (no par value)........................... N/A 28,735,718 33,111,224
=========== ===========
Net asset value, offering and redemption price per share.... N/A $ 1.00 $ 1.00
=========== ===========
MILEAGE CLASS:
Net asset value, offering and redemption price per share
(110,462,021 shares outstanding)...................... $ 1.00 N/A N/A
========
PLATINUM CLASS:
Net asset value, offering and redemption price per share
(64,670,156 shares outstanding)....................... $ 1.00 N/A N/A
========
</TABLE>
See accompanying notes
7
<PAGE> 9
AMERICAN AADVANTAGE MILEAGE FUNDS
STATEMENTS OF OPERATIONS
Six Months Ended April 30, 1998 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Growth and Intermediate International Short-Term
Balanced Income Bond Equity Bond
-------- ---------- ------------ ------------- ----------
(in thousands)
<S> <C> <C> <C> <C> <C>
INVESTMENT INCOME ALLOCATED FROM PORTFOLIO:
Interest income................................ $ 50 $ 8 $ - $ 9 $ 44
Dividend income (net of foreign taxes of $5 in
International Equity Fund)................... 25 127 - 56 -
Income derived from securities lending, net.... - 1 - 1 -
Portfolio expenses............................. (6) (19) - (15) (2)
-------- ---------- ------------ ------------- ----------
NET INVESTMENT INCOME ALLOCATED FROM
PORTFOLIO................................ 69 117 - 51 42
-------- ---------- ------------ ------------- ----------
FUND EXPENSES:
Management fees (Note 2)....................... 5 14 - 6 2
Transfer agent fees............................ 2 6 - 3 1
Professional fees.............................. 3 4 1 1 1
Registration fees and expenses................. 9 9 5 9 9
Distribution fees.............................. 5 14 - 6 2
Other expenses................................. 2 2 - 2 -
-------- ---------- ------------ ------------- ----------
TOTAL FUND EXPENSES........................ 26 49 6 27 15
-------- ---------- ------------ ------------- ----------
Less reimbursement of expenses (Note 2).... 14 11 6 3 12
-------- ---------- ------------ ------------- ----------
NET FUND EXPENSES.......................... 12 38 - 24 3
-------- ---------- ------------ ------------- ----------
NET INVESTMENT INCOME.............................. 57 79 - 27 39
-------- ---------- ------------ ------------- ----------
REALIZED AND UNREALIZED GAIN (LOSS) ALLOCATED FROM
PORTFOLIO:
Net realized gain (loss) on investments and
foreign currency transactions................ 152 507 - 95 (4)
Change in net unrealized appreciation or
depreciation of investments and foreign
currency translations........................ 217 1,336 - 563 2
-------- ---------- ------------ ------------- ----------
NET GAIN (LOSS) ON INVESTMENTS............. 369 1,843 - 658 (2)
-------- ---------- ------------ ------------- ----------
NET INCREASE IN NET ASSETS RESULTING FROM
OPERATIONS....................................... $ 426 $ 1,922 $ - $ 685 $ 37
======== ========== ============ ============= ==========
</TABLE>
See accompanying notes
8
<PAGE> 10
AMERICAN AADVANTAGE MILEAGE FUNDS
STATEMENTS OF OPERATIONS -- CONTINUED
Six Months Ended April 30, 1998 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
U.S.
Municipal Government
Money Money Money
Market Market Market
------ --------- ----------
(in thousands)
<S> <C> <C> <C>
INVESTMENT INCOME ALLOCATED FROM PORTFOLIO:
Interest income......................................... $4,566 $517 $896
Portfolio expenses...................................... (134) (28) (31)
------ ---- ----
NET INVESTMENT INCOME ALLOCATED FROM PORTFOLIO...... 4,432 489 865
------ ---- ----
FUND EXPENSES:
Management fees (Note 2)................................ 37 5 8
Administrative service fees - Platinum Class (Note 2)... 159 - -
Transfer agent fees..................................... - 12 8
Transfer agent fees - Mileage Class..................... 70 - -
Professional fees....................................... 17 2 1
Registration fees and expenses.......................... 39 10 14
Distribution fees....................................... - 35 39
Distribution fees - Mileage Class....................... 125 - -
Distribution fees - Platinum Class...................... 72 - -
Other expenses.......................................... 30 4 3
------ ---- ----
TOTAL FUND EXPENSES................................. 549 68 73
------ ---- ----
Less reimbursement of expenses (Note 2)............. 37 10 7
------ ---- ----
NET FUND EXPENSES................................... 512 58 66
------ ---- ----
NET INVESTMENT INCOME....................................... 3,920 431 799
------ ---- ----
REALIZED GAIN ALLOCATED FROM PORTFOLIO:
Net realized gain on investments........................ 3 - -
------ ---- ----
NET GAIN ON INVESTMENTS............................. 3 - -
------ ---- ----
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS........ $3,923 $431 $799
====== ==== ====
</TABLE>
See accompanying notes
9
<PAGE> 11
AMERICAN AADVANTAGE MILEAGE FUNDS
STATEMENTS OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Intermediate
Balanced Growth and Income Bond International Equity
------------------------- ------------------------- ------------ -------------------------
Six Six Six
Months Months Months
Ended Year Ended Year March 2, to Ended Year
April 30, Ended April 30, Ended April 30, April 30, Ended
1998 October 31, 1998 October 31, 1998 1998 October 31,
(Unaudited) 1997 (Unaudited) 1997 (Unaudited) (Unaudited) 1997
----------- ----------- ----------- ----------- ------------ ----------- -----------
(in thousands)
<S> <C> <C> <C> <C> <C> <C> <C>
INCREASE (DECREASE) IN NET
ASSETS:
OPERATIONS:
Net investment income....... $ 57 $ 105 $ 79 $ 150 $ - $ 27 $ 70
Net realized gain (loss) on
investments and foreign
currency transactions..... 152 426 507 760 - 95 154
Change in net unrealized
appreciation or
depreciation of
investments and foreign
currency translations..... 217 - 1,336 1,083 - 563 440
------ ------ -------- ------- ---- ------- -------
NET INCREASE IN NET
ASSETS RESULTING FROM
OPERATIONS............. 426 531 1,922 1,993 - 685 664
------ ------ -------- ------- ---- ------- -------
DISTRIBUTIONS TO SHAREHOLDERS:
Net investment income....... (112) (77) (156) (112) - (76) (40)
Net realized gain on
investments............... (227) (35) (510) (154) - (118) (52)
------ ------ -------- ------- ---- ------- -------
NET DISTRIBUTIONS TO
SHAREHOLDERS........... (339) (112) (666) (266) - (194) (92)
------ ------ -------- ------- ---- ------- -------
CAPITAL SHARE TRANSACTIONS:
Proceeds from sales of
shares.................... 419 830 8,286 10,940 26 3,928 2,290
Reinvestment of dividends
and distributions......... 316 107 632 252 - 181 84
Cost of shares redeemed..... (238) (414) (11,408) (6,640) (25) (4,167) (1,114)
------ ------ -------- ------- ---- ------- -------
NET INCREASE (DECREASE)
IN NET ASSETS FROM
CAPITAL SHARE
TRANSACTIONS........... 497 523 (2,490) 4,552 1 (58) 1,260
------ ------ -------- ------- ---- ------- -------
NET INCREASE (DECREASE) IN NET
ASSETS........................ 584 942 (1,234) 6,279 1 433 1,832
NET ASSETS:
Beginning of period......... 3,437 2,495 12,513 6,234 - 5,219 3,387
------ ------ -------- ------- ---- ------- -------
END OF PERIOD*.............. $4,021 $3,437 $ 11,279 $12,513 $ 1 $ 5,652 $ 5,219
====== ====== ======== ======= ==== ======= =======
*Includes undistributed net
investment income of...... $ 33 $ 88 $ 45 $ 122 $ - $ 10 $ 59
====== ====== ======== ======= ==== ======= =======
<CAPTION>
Short-Term Bond
-------------------------
Six
Months
Ended Year
April 30, Ended
1998 October 31,
(Unaudited) 1997
----------- -----------
<S> <C> <C>
INCREASE (DECREASE) IN NET
ASSETS:
OPERATIONS:
Net investment income....... $ 39 $ 67
Net realized gain (loss) on
investments and foreign
currency transactions..... (4) 1
Change in net unrealized
appreciation or
depreciation of
investments and foreign
currency translations..... 2 (6)
------ ------
NET INCREASE IN NET
ASSETS RESULTING FROM
OPERATIONS............. 37 62
------ ------
DISTRIBUTIONS TO SHAREHOLDERS:
Net investment income....... (39) (67)
Net realized gain on
investments............... - -
------ ------
NET DISTRIBUTIONS TO
SHAREHOLDERS........... (39) (67)
------ ------
CAPITAL SHARE TRANSACTIONS:
Proceeds from sales of
shares.................... 270 483
Reinvestment of dividends
and distributions......... 38 65
Cost of shares redeemed..... (285) (485)
------ ------
NET INCREASE (DECREASE)
IN NET ASSETS FROM
CAPITAL SHARE
TRANSACTIONS........... 23 63
------ ------
NET INCREASE (DECREASE) IN NET
ASSETS........................ 21 58
NET ASSETS:
Beginning of period......... 1,226 1,168
------ ------
END OF PERIOD*.............. $1,247 $1,226
====== ======
*Includes undistributed net
investment income of...... $ - $ -
====== ======
</TABLE>
See accompanying notes
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AMERICAN AADVANTAGE MILEAGE FUNDS
STATEMENTS OF CHANGES IN NET ASSETS -- CONTINUED
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Municipal U.S. Government
Money Market Money Market Money Market
------------------------- ------------------------- -------------------------
Six Months Six Months Six Months
Ended Ended Ended
April 30, Year Ended April 30, Year Ended April 30, Year Ended
1998 October 31, 1998 October 31, 1998 October 31,
(Unaudited) 1997 (Unaudited) 1997 (Unaudited) 1997
----------- ----------- ----------- ----------- ----------- -----------
(in thousands)
<S> <C> <C> <C> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
OPERATIONS:
Net investment income...................... 3$,920..... $ 6,465 $ 431 $ 831 $ 799 $ 687
Net realized gain on investments........... 3 2 - - - 1
--------- -------- ------- -------- ------- -------
NET INCREASE IN NET ASSETS RESULTING
FROM OPERATIONS....................... 3,923 6,467 431 831 799 688
--------- -------- ------- -------- ------- -------
DISTRIBUTIONS TO SHAREHOLDERS:
Net investment income...................... - - (431) (831) (799) (687)
Net investment income - Mileage Class...... (2,560) (5,222) - - - -
Net investment income - Platinum Class..... (1,360) (1,243) - - - -
Net realized gain on investments........... - - - - - (1)
Net realized gain on investments - Mileage
Class.................................... (2) (2) - - - -
Net realized gain on investments - Platinum
Class.................................... (1) - - - - -
--------- -------- ------- -------- ------- -------
NET DISTRIBUTIONS TO SHAREHOLDERS...... (3,923) (6,467) (431) (831) (799) (688)
--------- -------- ------- -------- ------- -------
CAPITAL SHARE TRANSACTIONS:
Proceeds from sales of shares.............. 185,569 151,656 25,764 20,081 12,617 28,992
Reinvestment of dividends and
distributions............................ 3,269 6,128 341 819 560 575
Cost of shares redeemed.................... (167,837) (125,791) (23,933) (23,062) (8,857) (11,414)
--------- -------- ------- -------- ------- -------
NET INCREASE (DECREASE) IN NET ASSETS
FROM CAPITAL SHARE TRANSACTIONS....... 21,001 31,993 2,172 (2,162) 4,320 18,153
--------- -------- ------- -------- ------- -------
NET INCREASE (DECREASE) IN NET ASSETS......... 21,001 31,993 2,172 (2,162) 4,320 18,153
NET ASSETS:
Beginning of period........................ 154,131 122,138 26,564 28,726 28,791 10,638
--------- -------- ------- -------- ------- -------
END OF PERIOD.............................. $ 175,132 $154,131 $28,736 $ 26,564 $33,111 $28,791
========= ======== ======= ======== ======= =======
</TABLE>
See accompanying notes
11
<PAGE> 13
AMERICAN AADVANTAGE MILEAGE FUNDS
NOTES TO FINANCIAL STATEMENTS
April 30, 1998 (Unaudited)
- --------------------------------------------------------------------------------
1. ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES
American AAdvantage Mileage Funds (the "Trust") is organized as a
Massachusetts business trust under a Declaration of Trust dated February 14,
1995 and is registered under the Investment Company Act of 1940 (the "Act"), as
amended, as a no-load, open-end management investment company. On July 19, 1995,
the Trust's Board of Trustees (the "Board") created seven separate series as
follows: American AAdvantage Balanced Mileage Fund, American AAdvantage Growth
and Income Mileage Fund, American AAdvantage International Equity Mileage Fund,
American AAdvantage Short-Term Bond Mileage Fund, American AAdvantage Money
Market Mileage Fund, American AAdvantage Municipal Money Market Mileage Fund and
American AAdvantage U.S. Government Money Market Mileage Fund (each a "Fund" and
collectively the "Funds"). Prior to March 1, 1998, the American AAdvantage
Short-Term Bond Mileage Fund was known as the American AAdvantage Limited-Term
Income Mileage Fund. The Funds (other than the Intermediate Bond Mileage Fund)
commenced active operations on November 1, 1995. The Money Market Mileage Fund
commenced sales of a second class of shares designated as "Platinum Class" on
January 29, 1996. At the same time, the existing shares of the Money Market
Mileage Fund were redesignated as "Mileage Class" shares. The American
AAdvantage Intermediate Bond Mileage Fund commenced active operations on March
2, 1998.
Each Fund invests all of its investable assets in the corresponding
portfolio of the AMR Investment Services Trust, an open-end diversified
management investment company, as follows:
<TABLE>
<S> <C> <C>
AMERICAN AADVANTAGE: & INVESTS ASSETS IN & AMR INVESTMENT SERVICES TRUST:
Balanced Mileage Fund Balanced Portfolio
Growth and Income Mileage Fund Growth and Income Portfolio
Intermediate Bond Mileage Fund Intermediate Bond Portfolio
International Equity Mileage Fund International Equity Portfolio
Short-Term Bond Mileage Fund Short-Term Bond Portfolio
Money Market Mileage Fund Money Market Portfolio
Municipal Money Market Mileage Fund Municipal Money Market Portfolio
U.S. Government Money Market Mileage Fund U.S. Government Money Market Portfolio
</TABLE>
Each AMR Investment Services Portfolio has the same investment objectives
as its corresponding Fund. The value of such investment reflects each Fund's
proportionate interest in the net assets of the corresponding portfolio (.37%,
.55%, .0%, .54%, 1.26%, 8.86%, 24.37% and 18.94% at April 30, 1998 of the AMR
Investment Services Balanced, Growth and Income, Intermediate Bond,
International Equity, Short-Term Bond, Money Market, Municipal Money Market and
U.S. Government Money Market Portfolios, respectively) (each a "Portfolio" and
collectively the "Portfolios"). The financial statements of the Portfolios are
included elsewhere in this report and should be read in conjunction with the
Funds' financial statements.
AMR Investment Services, Inc. (the "Manager") is a wholly-owned subsidiary
of AMR Corporation, the parent company of American Airlines, Inc. ("American"),
and was organized in 1986 to provide business management, advisory,
administrative and asset management consulting services.
12
<PAGE> 14
AMERICAN AADVANTAGE MILEAGE FUNDS
NOTES TO FINANCIAL STATEMENTS -- CONTINUED
April 30, 1998 (Unaudited)
- --------------------------------------------------------------------------------
The following is a summary of the significant accounting policies followed
by the Funds.
Valuation of Investments
Valuation of securities by the Portfolios is discussed in Note 1 of the
Portfolios' Notes to Financial Statements which are included elsewhere in this
report.
Investment Income and Dividends to Shareholders
Each Fund records its share of net investment income and realized and
unrealized gain (loss) in the Portfolio each day. All net investment income and
realized and unrealized gain (loss) of each Portfolio are allocated pro rata
among the corresponding Fund and other investors in each Portfolio at the time
of such determination. Dividends from net investment income of the Balanced,
Growth and Income and International Equity Mileage Funds normally will be
declared and paid annually. The Intermediate Bond and the Short-Term Bond
Mileage Funds generally declare dividends from net investment income daily,
payable monthly. Distributions, if any, of net realized capital gains normally
will be paid annually after the close of the fiscal year in which realized.
The Money Market, Municipal Money Market and U.S. Government Money Market
Mileage Funds (the "Money Market Funds") generally declare dividends daily from
net investment income and net short-term capital gain, if any, payable monthly.
Dividends are determined in accordance with income tax principles which may
treat certain transactions differently than generally accepted accounting
principles.
Federal Income and Excise Taxes
It is the policy of each of the Funds to comply with the requirements of
the Internal Revenue Code applicable to regulated investment companies and to
distribute substantially all net investment income as well as any net realized
capital gains on the sale of investments. Therefore, no federal income or excise
tax provision is required. At April 30, 1998, the Short-Term Bond Mileage Fund
had a capital loss carryforward for federal income tax purposes of approximately
$38,000 expiring in years 2004 - 2005.
All dividends paid by the Municipal Money Market Mileage Fund were
"exempt - interest dividends", therefore 100% free of any regular federal income
tax. Approximately 46% of interest earned was derived from investments in
certain private activity bonds for purposes of the federal alternative minimum
tax calculation.
Deferred Organization Expenses
Expenses incurred by a Fund in connection with its organization are being
amortized on a straight-line basis over a five-year period.
Expenses
Expenses directly attributable to a Fund are charged to that Fund's
operations. Expenses directly attributable to a Class of shares are charged to
that Class. Expenses incurred by the Trust with respect to any two or more of
the Funds are allocated in proportion to the net assets of each Fund, except
where
13
<PAGE> 15
AMERICAN AADVANTAGE MILEAGE FUNDS
NOTES TO FINANCIAL STATEMENTS -- CONTINUED
April 30, 1998 (Unaudited)
- --------------------------------------------------------------------------------
allocations of direct expenses to each Fund can otherwise be made fairly. Each
share of each Fund, regardless of class, bears equally those expenses that are
allocated to the Fund as a whole.
Valuation of Shares
The price per share is calculated separately for each Fund on each day on
which shares are offered for sale and orders accepted or upon receipt of a
redemption request. Net asset value per share is computed by dividing the value
of a Fund's total assets (which includes the value of the Fund's investment in
its corresponding Portfolio), less liabilities, by the number of Fund shares
outstanding. With respect to a class of the Money Market Mileage Fund, price per
share is computed by dividing the value of the Class' pro rata allocation of the
Fund's investments and other assets, less liabilities, by the number of Class
shares outstanding.
2. TRANSACTIONS WITH AFFILIATES
Management Agreement
The Manager and the Trust entered into a Management Agreement which
obligates the Manager to provide or oversee administrative and management
services to the Funds. As compensation for performing the duties required under
the Management Agreement, the Manager receives an annualized fee of .25% of the
average daily net assets of the Balanced, Growth and Income, Intermediate Bond,
International Equity and Short-Term Bond Mileage Funds and .05% of the net
assets of each of the Money Market Funds.
Administrative Services Plan
The Trust has adopted an Administrative Services Plan with respect to the
Platinum Class of the Money Market Mileage Fund. As compensation for providing
administrative services, the Manager receives an annual fee of .55% of the
average daily net assets of the Money Market Mileage Fund - Platinum Class.
Distribution Plan
The Trust has adopted a Distribution Plan (the "Plan") pursuant to Rule
12b-1 under the Act. A separate plan has been adopted by the Mileage Class and
Platinum Class of the Money Market Mileage Fund. Under the Plan, as compensation
for distribution assistance, the Manager receives an annual fee of .25% of the
average daily net assets of each Class or Fund. The fee will be payable without
regard to whether the amount of the fee is more or less than the actual expenses
incurred in a particular month by the Manager for distribution assistance.
During the six months ended April 30, 1998, the Manager waived distribution fees
totaling $4,714, $11,337, $3, $3,481, $1,511, $9,798 and $7,027 for the
Balanced, Growth and Income, Intermediate Bond, International Equity, Short-Term
Bond, Municipal Money Market and U.S. Government Money Market Mileage Funds,
respectively. During the same period, the Manager waived $22,315 and $14,901 for
the Money Market Mileage Fund - Mileage Class and the Money Market Mileage
Fund - Platinum Class, respectively.
14
<PAGE> 16
AMERICAN AADVANTAGE MILEAGE FUNDS
NOTES TO FINANCIAL STATEMENTS -- CONTINUED
April 30, 1998 (Unaudited)
- --------------------------------------------------------------------------------
Other
Certain officers or trustees of the Trust are also officers of the Manager
or American. The Trust makes no direct payments to its officers. Unaffiliated
trustees and their spouses are provided free unlimited air transportation on
American. However, the Trust compensates each Trustee with payments in an amount
equal to the Trustee's income tax on the value of this free airline travel. For
the six months ended April 30, 1998, the cost of air transportation was not
material to any of the Funds.
Reimbursement of Expenses
For the six months ended April 30, 1998, the Manager reimbursed expenses
totaling $14,476, $11,337, $5,902, $3,481 and $12,251 for the Balanced, Growth
and Income, Intermediate Bond, International Equity and Short-Term Bond Mileage
Funds, respectively.
3. CAPITAL SHARE TRANSACTIONS
The tables below summarize the activity in capital shares of the Funds (in
thousands). Each share of the Money Market Mileage Funds is valued at $1.00:
Six Months Ended April 30, 1998
<TABLE>
<CAPTION>
Growth and Intermediate
Balanced Income Bond Mileage
Mileage Fund Mileage Fund Fund
--------------- ----------------- ---------------
Shares Amount Shares Amount Shares Amount
------ ------ ------ -------- ------ ------
<S> <C> <C> <C> <C> <C> <C>
Shares sold................................................. 23 $ 419 353 $ 8,286 3 $ 26
Reinvestment of dividends................................... 19 316 28 632 -- --
Shares redeemed............................................. (13) (238) (472) (11,408) (2) (25)
--- ----- ----- -------- --- ----
Net increase (decrease) in capital shares outstanding....... 29 $ 497 (91) $ (2,490) 1 $ 1
=== ===== ===== ======== === ====
</TABLE>
<TABLE>
<CAPTION>
International Short-Term
Equity Bond
Mileage Fund Mileage Fund
---------------- ---------------
Shares Amount Shares Amount
------ ------- ------ ------
<S> <C> <C> <C> <C>
Shares sold................................................. 203 $ 3,928 28 $ 270
Reinvestment of dividends................................... 11 181 4 38
Shares redeemed............................................. (218) (4,167) (30) (285)
---- ------- --- -----
Net increase (decrease) in capital shares outstanding....... (4) $ (58) 2 $ 23
==== ======= === =====
</TABLE>
<TABLE>
<CAPTION>
Money Market
Mileage Fund Municipal U.S. Government
------------------------------ Money Market Money Market
Mileage Class Platinum Class Mileage Fund Mileage Fund
------------- -------------- ------------ ---------------
<S> <C> <C> <C> <C>
Shares sold........................................... 97,063 88,506 25,764 12,617
Reinvestment of dividends............................. 2,099 1,170 341 560
Shares redeemed....................................... (93,806) (74,031) (23,933) (8,857)
------- ------- ------- ------
Net increase in capital shares outstanding............ 5,356 15,645 2,172 4,320
======= ======= ======= ======
</TABLE>
15
<PAGE> 17
AMERICAN AADVANTAGE MILEAGE FUNDS
NOTES TO FINANCIAL STATEMENTS -- CONTINUED
April 30, 1998 (Unaudited)
- --------------------------------------------------------------------------------
Year Ended October 31, 1997
<TABLE>
<CAPTION>
Growth and International Limited-Term
Balanced Income Equity Income
Mileage Fund Mileage Fund Mileage Fund Mileage Fund
--------------- ---------------- ---------------- ---------------
Shares Amount Shares Amount Shares Amount Shares Amount
------ ------ ------ ------- ------ ------- ------ ------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Shares sold.................................... 49 $ 830 502 $10,940 135 $ 2,290 50 $ 483
Reinvestment of dividends...................... 7 107 13 252 5 84 7 65
Shares redeemed................................ (24) (414) (310) (6,640) (66) (1,114) (50) (485)
----- ----- ----- ------- ----- ------- ----- -----
Net increase in capital shares outstanding..... 32 $ 523 205 $ 4,552 74 $ 1,260 7 $ 63
===== ===== ===== ======= ===== ======= ===== =====
</TABLE>
<TABLE>
<CAPTION>
Money Market
Mileage Fund Municipal U.S. Government
------------------------------ Money Market Money Market
Mileage Class Platinum Class Mileage Fund Mileage Fund
------------- -------------- ------------ ---------------
<S> <C> <C> <C> <C>
Shares sold........................................... 85,725 65,931 20,081 28,992
Reinvestment of dividends............................. 5,027 1,101 819 575
Shares redeemed....................................... (92,514) (33,277) (23,062) (11,414)
------- ------- ------- -------
Net increase (decrease) in capital shares
outstanding......................................... (1,762) 33,755 (2,162) 18,153
======= ======= ======= =======
</TABLE>
16
<PAGE> 18
AMERICAN AADVANTAGE BALANCED MILEAGE FUND
FINANCIAL HIGHLIGHTS
(For a share outstanding throughout the period)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Six Months
Ended Year Ended
April 30, October 31,
1998 -------------------------
(Unaudited) 1997 1996(A)
----------- ----------- -----------
<S> <C> <C> <C>
Net asset value, beginning of period(B)..................... $18.32 $16.01 $13.97
------ ------ ------
Income from investment operations:
Net investment income(C)................................ 0.26 0.58 0.49
Net gains on securities (both realized and
unrealized)(C)........................................ 1.74 2.44 1.65
------ ------ ------
Total from investment operations............................ 2.00 3.02 2.14
------ ------ ------
Less distributions:
Dividends from net investment income.................... (0.58) (0.49) (0.10)
Distributions from net realized gains on securities..... (1.16) (0.22) -
------ ------ ------
Total distributions......................................... (1.74) (0.71) (0.10)
------ ------ ------
Net asset value, end of period.............................. $18.58 $18.32 $16.01
====== ====== ======
Total return(D)............................................. 11.75% 19.52% 15.97%
====== ====== ======
Ratios and supplemental data:
Net assets, end of period (in thousands)................ $4,021 $3,437 $2,495
Ratios to average net assets (annualized)(C D):
Expenses........................................... 0.96% 0.99% 1.01%
Net investment income.............................. 3.07% 3.45% 3.58%
</TABLE>
- ---------------
(A) Capital Guardian Trust Company was replaced by Brandywine Asset Management
as an investment adviser to the Balanced Fund on April 1, 1996.
(B) The net asset value per share for the Balanced Mileage Fund has been
adjusted for a stock split which occurred on November 1, 1995 in the ratio
of 1.43169.
(C) 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.
(D) Operating results in the year and period indicated below excluded expenses
reimbursed by the Manager. Results prior to expense reimbursements were as
follows:
<TABLE>
<CAPTION>
Six Months
Ended Year Ended
April 30, October 31,
1998 -------------------------
(Unaudited) 1997 1996
----------- ----------- -----------
<S> <C> <C> <C>
Ratio of expenses to average net assets (annualized)........ 1.73% 1.83% 2.93%
Ratio of net investment income to average net assets
(annualized).............................................. 2.30% 2.61% 1.66%
</TABLE>
17
<PAGE> 19
AMERICAN AADVANTAGE GROWTH AND INCOME MILEAGE FUND
FINANCIAL HIGHLIGHTS
(For a share outstanding throughout the period)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Six Months
Ended Year Ended
April 30, October 31,
1998 -------------------------
(Unaudited) 1997 1996(A)
------------ ----------- -----------
<S> <C> <C> <C>
Net asset value, beginning of
period(B)............................. $ 23.72 $ 19.35 $15.94
------- ------- ------
Income from investment operations:
Net investment income(C)............ 0.26 0.31 0.34
Net gains on securities (both
realized and unrealized)(C)....... 3.50 4.87 3.16
------- ------- ------
Total from investment operations........ 3.76 5.18 3.50
------- ------- ------
Less distributions:
Dividends from net investment
income............................ (0.39) (0.34) (0.09)
Distributions from net realized
gains on securities............... (1.27) (0.47) -
------- ------- ------
Total distributions..................... (1.66) (0.81) (0.09)
------- ------- ------
Net asset value, end of period.......... $ 25.82 $ 23.72 $19.35
======= ======= ======
Total return(D)......................... 16.83% 27.60% 22.77%
======= ======= ======
Ratios and supplemental data:
Net assets, end of period (in
thousands)........................ $11,279 $12,513 $6,234
Ratios to average net assets
(annualized)(C D):
Expenses....................... 1.01% 99% 1.00%
Net investment income.......... 1.36% 1.78% 2.13%
</TABLE>
- ---------------
(A) Capital Guardian Trust Company was replaced by Brandywine Asset Management
as an investment adviser to the Growth and Income Fund on April 1, 1996.
(B) The net asset value per share for the Growth and Income Mileage Fund has
been adjusted for a stock split which occurred on November 1, 1995 in the
ratio of 1.254705.
(C) 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.
(D) Operating results in the year and period indicated below excluded expenses
reimbursed by the Manager. Results prior to expense reimbursements were as
follows:
<TABLE>
<CAPTION>
Six Months
Ended Year Ended
April 30, October 31,
1998 -------------------------
(Unaudited) 1997 1996
----------- ----------- -----------
<S> <C> <C> <C>
Ratio of expenses to average net assets (annualized)........ 1.21% 1.31% 1.88%
Ratio of net investment income to average net assets
(annualized).............................................. 1.16% 1.46% 1.25%
</TABLE>
18
<PAGE> 20
AMERICAN AADVANTAGE INTERMEDIATE BOND MILEAGE FUND
FINANCIAL HIGHLIGHTS
(For a share outstanding throughout the period)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
March 2,
to April 30,
1998
(Unaudited)
------------
<S> <C>
Net asset value, beginning of period........................ $10.00
------
Income from investment operations:
Net investment income(A)................................ 0.09
Net gains on securities (both realized and
unrealized)(A)......................................... 0.02
------
Total from investment operations............................ 0.11
------
Less distributions:
Dividends from net investment income.................... (0.09)
Distributions from net realized gains on securities..... -
------
Total distributions......................................... (0.09)
------
Net asset value, end of period.............................. $10.02
======
Total return(B)............................................. 1.05%
======
Ratios and supplemental data:
Net assets, end of period (in thousands)................ $ 1
Ratios to average net assets (annualized)(A B):
Expenses........................................... 0.85%
Net investment income.............................. 4.86%
</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) Operating results in the year and period indicated below excluded expenses
reimbursed by the Manager. Results prior to expense reimbursements were as
follows:
<TABLE>
<CAPTION>
March 2,
to April 30,
1998
(Unaudited)
------------
<S> <C>
Ratio of expenses to average net assets (annualized)........ 504.10%
Ratio of net investment income to average net assets
(annualized).............................................. (498.39%)
</TABLE>
19
<PAGE> 21
AMERICAN AADVANTAGE INTERNATIONAL EQUITY MILEAGE FUND
FINANCIAL HIGHLIGHTS
(For a share outstanding throughout the period)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Six Months Year Ended
Ended October 31,
April 30, 1998 -------------------------
(Unaudited) 1997 1996
-------------- ----------- -----------
<S> <C> <C> <C>
Net asset value, beginning of period(A)..................... $17.67 $15.31 $13.15
------ ------ ------
Income from investment operations:
Net investment income(B)................................ 0.10 0.25 0.20
Net gains on securities (both realized and
unrealized)(B)........................................ 2.33 2.52 2.03
------ ------ ------
Total from investment operations............................ 2.43 2.77 2.23
------ ------ ------
Less distributions:
Dividends from net investment income.................... (0.27) (0.18) (0.07)
Distributions from net realized gains on securities..... (0.42) (0.23) -
------ ------ ------
Total distributions......................................... (0.69) (0.41) (0.07)
------ ------ ------
Net asset value, end of period.............................. $19.41 $17.67 $15.31
====== ====== ======
Total return(C)............................................. 14.39% 18.44% 16.58%
====== ====== ======
Ratios and supplemental data:
Net assets, end of period (in thousands)................ $5,652 $5,219 $3,387
Ratios to average net assets (annualized)(B C):
Expenses........................................... 1.51% 1.47% 1.48%
Net investment income.............................. 1.03% 1.61% 1.63%
</TABLE>
- ---------------
(A) The net asset value per share for the International Equity Mileage Fund has
been adjusted for a stock split which occurred on November 1, 1995 in the
ratio of 1.520913.
(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
the respective AMR Investment Services Portfolio.
(C) Operating results in the year and period indicated below excluded expenses
reimbursed by the Manager. Results prior to expense reimbursements were as
follows:
<TABLE>
<CAPTION>
Six Months Year Ended
Ended October 31,
April 30, 1998 -------------------------
(Unaudited) 1997 1996
-------------- ----------- -----------
<S> <C> <C> <C>
Ratio of expenses to average net assets (annualized)........ 1.64% 1.68% 2.71%
Ratio of net investment income to average net assets
(annualized).............................................. 0.90% 0.40% 4.20%
</TABLE>
20
<PAGE> 22
AMERICAN AADVANTAGE SHORT-TERM BOND MILEAGE FUND
FINANCIAL HIGHLIGHTS
(For a share outstanding throughout the period)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Six Months Year Ended
Ended October 31,
April 30, 1998(A) ---------------
(Unaudited) 1997 1996
----------------- ------ ------
<S> <C> <C> <C>
Net asset value, beginning of period(B)..................... $ 9.60 $ 9.65 $ 9.83
------ ------ ------
Income from investment operations:
Net investment income(C)................................ 0.31 0.61 0.59
Net (losses) on securities (both realized and
unrealized)(C)......................................... (0.01) (0.05) (0.18)
------ ------ ------
Total from investment operations............................ 0.30 0.56 0.41
------ ------ ------
Less distributions:
Dividends from net investment income.................... (0.31) (0.61) (0.59)
Distributions from net realized gains on securities..... - - -
------ ------ ------
Total distributions......................................... (0.31) (0.61) (0.59)
------ ------ ------
Net asset value, end of period.............................. $ 9.59 $ 9.60 $ 9.65
====== ====== ======
Total return(D)............................................. 3.13% 5.90% 4.55%
====== ====== ======
Ratios and supplemental data:
Net assets, end of period (in thousands)................ $1,247 $1,226 $1,168
Ratios to average net assets (annualized)(C D):
Expenses........................................... 0.84% 0.85% 0.86%
Net investment income.............................. 6.43% 6.37% 6.08%
</TABLE>
- ---------------
(A) Prior to March 1, 1998, the American AAdvantage Short-Term Bond Mileage
Fund was known as the American AAdvantage Limited-Term Income Mileage Fund.
(B) The net asset value per share for the Short-Term Bond Mileage Fund has been
adjusted for a stock split which occurred on November 1, 1995 in the ratio
of 2.034588.
(C) 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.
(D) Operating results in the year and period indicated below excluded expenses
reimbursed by the Manager. Results prior to expense reimbursements were as
follows:
<TABLE>
<CAPTION>
Six Months Year Ended
Ended October 31,
April 30, 1998 ---------------
(Unaudited) 1997 1996
-------------- ------ ------
<S> <C> <C> <C>
Ratio of expenses to average net assets (annualized)........ 2.86% 3.01% 3.19%
Ratio of net investment income to average net assets
(annualized).............................................. 4.41% 4.21% 3.75%
</TABLE>
21
<PAGE> 23
AMERICAN AADVANTAGE MONEY MARKET MILEAGE FUNDS
FINANCIAL HIGHLIGHTS
(For a share outstanding throughout the period)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Money Market(A)
---------------------------------------------------------------------------
Mileage Class Platinum Class
--------------------------------- ---------------------------------------
Six Months Six Months
Ended Year Ended Ended January 29,
April 30, October 31, April 30, Year Ended to
1998 ------------------- 1998 October 31, October 31,
(Unaudited) 1997 1996 (Unaudited) 1997 1996
----------- -------- -------- ----------- ----------- -----------
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period........ $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
-------- -------- -------- ------- ------- -------
Income from investment operations:
Net investment income(B)................ 0.03 0.05 0.05 0.02 0.05 0.03
Dividends from net investment income.... (0.03) (0.05) (0.05) (0.02) (0.05) (0.03)
-------- -------- -------- ------- ------- -------
Net asset value, end of period.............. $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
======== ======== ======== ======= ======= =======
Total return(C)............................. 2.56% 5.14% 5.12% 2.35% 4.71% 4.78%
======== ======== ======== ======= ======= =======
Ratios and supplemental data:
Net assets, end of period (in
thousands)............................ $110,462 $104,947 $106,709 $64,670 $49,184 $15,429
Ratios to average net assets
(annualized)(B C):
Expenses........................... 0.67% 0.67% 0.67% 1.08% 1.09% 1.09%
Net investment income.............. 5.12% 5.02% 5.02% 4.69% 4.64% 4.48%
</TABLE>
- ---------------
(A) The Platinum Class of the Money Market Mileage Fund 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
the respective AMR Investment Services Portfolio.
(C) Operating results in the year and period indicated below excluded expenses
reimbursed by the Manager. Results prior to expense reimbursements were as
follows:
<TABLE>
<CAPTION>
Money Market
------------------------------------------------------------------------
Mileage Class Platinum Class
Six Months --------------- Six Months --------------------------
Ended Year Ended Ended January 29,
April 30, October 31, April 30, Year Ended to
1998 --------------- 1998 October 31, October 31,
(Unaudited) 1997 1996 (Unaudited) 1997 1996
----------- ------ ------ ----------- ----------- ------------
<S> <C> <C> <C> <C> <C> <C>
Ratio of expenses to average net assets
(annualized)............................ 0.71% 0.74% 0.78% 1.13% 1.14% 1.24%
Ratio of net investment income to average
net assets (annualized)................. 5.08% 4.95% 4.91% 4.64% 4.59% 4.33%
</TABLE>
22
<PAGE> 24
AMERICAN AADVANTAGE MUNICIPAL MONEY MARKET MILEAGE FUND
FINANCIAL HIGHLIGHTS
(For a share outstanding throughout the period)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Six Months
Ended Year Ended
April 30, October 31,
1998 -----------------
(Unaudited) 1997 1996
----------- ------- -------
<S> <C> <C> <C>
Net asset value, beginning of period........................ $ 1.00 $ 1.00 $ 1.00
------- ------- -------
Income from investment operations:
Net investment income(A)................................ 0.02 0.03 0.03
Dividends from net investment income.................... (0.02) (0.03) (0.03)
------- ------- -------
Net asset value, end of period.............................. $ 1.00 $ 1.00 $ 1.00
======= ======= =======
Total return(B)............................................. 1.60% 3.18% 3.19%
======= ======= =======
Ratios and supplemental data:
Net assets, end of period (in thousands)................ $28,736 $26,564 $28,726
Ratios to average net assets (annualized)(A B):
Expenses........................................... 0.65% 0.65% 0.66%
Net investment income.............................. 3.21% 3.13% 3.14%
</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) Operating results in the year and period indicated below excluded expenses
reimbursed by the Manager. Results prior to expense reimbursements were as
follows:
<TABLE>
<CAPTION>
Six Months
Ended Year Ended
April 30, October 31,
1998 ---------------
(Unaudited) 1997 1996
----------- ------ ------
<S> <C> <C> <C>
Ratio of expenses to average net assets (annualized)........ 0.73% 0.78% 0.80%
Ratio of net investment income to average net assets
(annualized).............................................. 3.13% 3.00% 3.00%
</TABLE>
23
<PAGE> 25
AMERICAN AADVANTAGE U.S. GOVERNMENT MONEY MARKET MILEAGE FUND
FINANCIAL HIGHLIGHTS
(For a share outstanding throughout the period)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Six Months
Ended Year Ended
April 30, October 31, 1997
1998 -----------------
(Unaudited) 1997(A) 1996
----------- ------- -------
<S> <C> <C> <C>
Net asset value, beginning of period........................ $ 1.00 $ 1.00 $ 1.00
------- ------- -------
Income from investment operations:
Net investment income(B)................................ 0.03 0.05 0.05
Dividends from net investment income.................... (0.03) (0.05) (0.05)
------- ------- -------
Net asset value, end of period.............................. $ 1.00 $ 1.00 $ 1.00
======= ======= =======
Total return(C)............................................. 2.56% 5.00% 4.98%
======= ======= =======
Ratios and supplemental data:
Net assets, end of period (in thousands)................ $33,111 $28,791 $10,638
Ratios to average net assets (annualized)(B C):
Expenses........................................... 0.62% 0.62% 0.62%
Net investment income.............................. 5.12% 4.91% 4.82%
</TABLE>
- ---------------
(A) Prior to March 1, 1997, the American AAdvantage U.S. Government Money
Market Mileage Fund was known as the American AAdvantage U.S. Treasury
Money Market Mileage Fund and operated under different investment policies.
(B) 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.
(C) Operating results in the year and period indicated below excluded expenses
reimbursed by the Manager. Results prior to expense reimbursements were as
follows:
<TABLE>
<CAPTION>
Six Months
Ended Year Ended
April 30, October 31,
1998 ---------------
(Unaudited) 1997(A) 1996
----------- ------- -----
<S> <C> <C> <C>
Ratio of expenses to average net assets (annualized)........ 0.67% 0.78% 0.80%
Ratio of net investment income to average net assets
(annualized).............................................. 5.07% 4.75% 4.33%
</TABLE>
24
<PAGE> 26
AMR INVESTMENT SERVICES BALANCED PORTFOLIO
SCHEDULE OF INVESTMENTS
April 30, 1998 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Par
Amount Value
-------- ----------
(dollars in thousands)
<S> <C> <C>
U.S. TREASURY OBLIGATIONS - 20.74%
U.S. TREASURY BILLS - 1.95%
Due 7/30/1998.................. $ 8,000 $ 7,903
Due 8/27/1998.................. 12,000 11,799
Due 11/12/1998................. 1,500 1,460
----------
TOTAL U.S. TREASURY
BILLS.................... 21,162
----------
U.S. TREASURY BONDS - 7.03%
11.625%, Due 11/15/2004........ 4,000 5,264
14.00%, Due 11/15/2011......... 2,750 4,242
10.375%, Due 11/15/2012........ 5,770 7,640
7.25%, Due 5/15/2016........... 3,500 3,975
7.50%, Due 11/15/2016.......... 8,800 10,235
8.125%, Due 8/15/2019.......... 9,825 12,260
7.25%, Due 8/15/2022........... 12,000 13,830
6.25%, Due 8/15/2023........... 5,650 5,812
6.75%, Due 8/15/2026........... 1,940 2,130
6.375%, Due 8/15/2027.......... 4,500 4,739
6.125%, Due 11/15/2027......... 5,910 6,052
----------
TOTAL U.S. TREASURY
BONDS.................... 76,179
----------
U.S. TREASURY COUPON STRIPS - 1.01%
Due 5/15/2011.................. 4,000 1,841
Due 2/15/2016.................. 17,000 5,806
Due 11/15/2018................. 11,500 3,314
----------
TOTAL U.S. TREASURY COUPON
STRIPS................... 10,961
----------
U.S. TREASURY NOTES - 10.75%
5.625%, Due 11/30/1998......... 6,000 6,006
5.125%, Due 12/31/1998......... 2,000 1,996
5.875%, Due 2/28/1999.......... 5,490 5,504
5.875%, Due 3/31/1999.......... 2,750 2,759
6.375%, Due 5/15/1999.......... 14,560 14,669
6.00%, Due 6/30/1999........... 1,000 1,005
5.875%, Due 8/31/1999.......... 3,500 3,512
5.625%, Due 10/31/1999......... 1,500 1,500
6.875%, Due 3/31/2000.......... 1,500 1,534
6.25%, Due 5/31/2000........... 1,000 1,012
6.00%, Due 8/15/2000........... 2,000 2,016
6.125%, Due 9/30/2000.......... 8,680 8,778
8.50%, Due 11/15/2000.......... 5,500 5,870
5.625%, Due 11/30/2000......... 4,500 4,500
6.375%, Due 3/31/2001.......... 2,000 2,039
</TABLE>
<TABLE>
<CAPTION>
Par
Amount Value
-------- ----------
(dollars in thousands)
<S> <C> <C>
5.875%, Due 8/15/2001.......... $ 6,240 $ 6,648
7.50%, Due 11/15/2001.......... 1,000 1,058
7.50%, Due 5/15/2002........... 2,500 2,662
6.375%, Due 8/15/2002.......... 5,500 5,643
6.25%, Due 8/31/2002........... 370 378
6.25%, Due 2/15/2003........... 1,000 1,023
5.75%, Due 8/15/2003........... 8,550 8,574
5.875%, Due 2/15/2004.......... 3,500 3,533
7.25%, Due 8/15/2004........... 1,000 1,080
7.875%, Due 11/15/2004......... 2,000 2,230
6.50%, Due 5/15/2005........... 6,040 6,302
6.50%, Due 8/15/2005........... 2,250 2,349
5.875%, Due 11/15/2005......... 5,000 5,036
7.00%, Due 7/15/2006........... 6,650 7,180
----------
TOTAL U.S. TREASURY
NOTES.................... 116,396
----------
TOTAL U.S. GOVERNMENT &
AGENCY OBLIGATIONS....... 224,698
----------
U.S. AGENCY MORTGAGE-BACKED
OBLIGATIONS - 2.07%
FEDERAL HOME LOAN MORTGAGE
CORPORATION - 0.36%
6.50%, Due 10/15/2006.......... 1,500 1,507
7.00%, Due 12/1/2012........... 1,418 1,445
6.00%, Due 3/1/2013............ 648 639
6.50%, Due 5/15/2014........... 91 91
7.00%, Due 4/15/2019........... 207 207
----------
TOTAL FEDERAL HOME LOAN
MORTGAGE CORPORATION..... 3,889
----------
FEDERAL NATIONAL MORTGAGE
ASSOCIATION - 1.30%
Pool #66185, 6.154%,
Due 7/1/2018................. 1,684 1,671
Series 1989-21G, 10.45%,
Due 4/25/2019................ 150 164
Discount Note, 0.00%,
Due 10/9/2019................ 2,950 777
Pool #218949, 7.75%,
Due 12/1/2023................ 516 518
Pool #266196, 7.748%,
Due 1/1/2024................. 1,056 1,072
Pool #306505, 8.00%,
Due 3/1/2025................. 863 895
</TABLE>
See accompanying notes
25
<PAGE> 27
AMR INVESTMENT SERVICES BALANCED PORTFOLIO
SCHEDULE OF INVESTMENTS -- CONTINUED
April 30, 1998 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Par
Amount Value
-------- ----------
(dollars in thousands)
<S> <C> <C>
REMIC, 6.75%,
Due 10/25/2018............... $ 71 $ 71
REMIC, 6.50%,
Due 11/25/2007............... 211 210
Pool #408204, 6.50%,
Due 1/1/2028................. 1,983 1,964
Pool #416831, 6.50%,
Due 3/1/2028................. 674 668
TBA, 7.02%,
Due 6/23/2025................ 2,000 2,186
TBA, 6.09%,
Due 9/27/2027................ 1,500 1,456
TBA, 5.98%,
Due 11/12/2027............... 2,500 2,398
----------
TOTAL FEDERAL NATIONAL
MORTGAGE ASSOCIATION..... 14,050
----------
GOVERNMENT NATIONAL MORTGAGE ASSOCIATION - 0.41%
Pool #102932, 10.50%,
Due 9/15/1998................ 1 1
Series 1994-2 CIO, 7.99125%,
Due 4/16/2010................ 24 24
Pool #180220, 9.00%,
Due 10/15/2016............... 688 745
Pool #1849, 8.50%,
Due 8/20/2024................ 338 353
Pool #466318, 7.00%
Due 1/15/2028................ 3,294 3,334
----------
TOTAL GOVERNMENT NATIONAL
MORTGAGE ASSOCIATION 4,457
----------
TOTAL U.S. AGENCY
MORTGAGE-BACKED
OBLIGATIONS.............. 22,396
----------
ASSET-BACKED SECURITIES - 1.22%
Amresco Commercial Mortgage
Funding I, Series 1997-C1 A3,
7.19%, Due 6/17/2029......... 1,510 1,565
Asset Securitization
Corporation, Series 1997-D5
A1C, 6.75%, Due 2/14/2041.... 2,000 2,033
Chase Commercial Mortgage
Securities Corporation,
Series 1997-1 A2, 7.37%,
Due 2/19/2007................ 1,100 1,153
Chase Manhattan Auto Owner Trust,
1996-C A3, 5.95%,
Due 11/15/2000............... 850 850
</TABLE>
<TABLE>
<CAPTION>
Par
Amount Value
-------- ----------
(dollars in thousands)
<S> <C> <C>
Chase Manhattan Credit Card
Master Trust, 1996-4A, 6.73%,
Due 2/15/2003................ $ 1,550 $ 1,562
Citibank Credit Card Master
Trust I, 5.85%, Due
4/10/2003.................... 2,380 2,380
ContiMortgage Home Equity
Loan Trust, 1994-4 A2, 7.96%,
Due 9/15/2009................ 393 395
NationsBank Auto Owner Trust,
1996-A A3, 6.375%,
Due 7/15/2000................ 2,532 2,539
Olympic Automobile Receivable,
7.875%, Due 7/15/2001........ 548 555
Western Financial Grantor
Trust, 1994-3 A2, 6.65%, Due
12/1/1999.................... 140 140
----------
TOTAL ASSET-BACKED
SECURITIES............... 13,172
----------
NON-AGENCY MORTGAGE-BACKED OBLIGATIONS - 1.71%
Citicorp Mortgage Securities,
Incorporated,
8.50%, Due 4/1/2017.......... 400 399
6.92%, Due 8/25/2027......... 1,893 1,902
Credit Suisse First Boston
Mortgage, 7.24%,
Due 6/20/2029................ 400 416
CountryWide, Incorporated,
8.25%, Due 5/25/2010......... 600 621
CountryWide, Incorporated,
7.50%, Due 7/25/2011......... 735 748
Ditech Home Loan Owner, 6.59%,
Due 4/15/2013................ 2,225 2,238
DLJ Mortgage Acceptance
Corporation, 1994-Q1 2A1,
4.56029%, Due 3/25/2024...... 189 188
Firstplus Home Loan Owner
Trust, 6.20%, Due
3/10/2015.................... 2,000 1,992
General Electric Capital
Mortgage Services,
Incorporated, 1992-4A A4,
8.00%, Due 4/25/2022......... 345 346
GE Capital Mortgage Services,
Incorporated
7.50%, Due 10/25/2025........ 1,693 1,693
Green Tree Financial
Corporation, 1996-8 A4,
7.00%,
Due 10/15/2027............... 1,300 1,329
Mortgage Capital Funding,
Incorporated
6.758%, Due 2/20/2004........ 654 663
</TABLE>
See accompanying notes
26
<PAGE> 28
AMR INVESTMENT SERVICES BALANCED PORTFOLIO
SCHEDULE OF INVESTMENTS -- CONTINUED
April 30, 1998 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Par
Amount Value
-------- ----------
(dollars in thousands)
<S> <C> <C>
Nomura Asset Securities
Corporation,
8.15%, Due 4/4/2027.......... $ 1,500 $ 1,636
Residential Funding Mortgage
Securities I,
6.35%, Due 8/25/2023......... 275 274
Long Beach Acceptance Auto
Grantor,
6.19%, Due 1/25/2005......... 757 756
The Money Store Home Equity
Trust, Series 1996 A-A8,
7.66%,
Due 8/15/2026................ 1,500 1,569
Securitized Multiple Asset,
7.72%, Due 4/15/2005......... 1,723 1,730
----------
TOTAL NON-AGENCY
MORTGAGE-BACKED
OBLIGATIONS.............. 18,500
----------
CORPORATE BONDS - 12.36%
BANKS - 2.00%
BankAmerica Corporation, 9.75%,
Due 7/1/2000................. 600 645
Bank of Boston, N.A., MTN,
6.375%, Due 3/25/2008........ 4,200 4.162
Capital One Bank
8.125%, Due 3/1/2000......... 1,690 1,747
7.35%, Due 6/20/2000......... 385 394
Chase Manhattan Corporation,
8.625%, Due 5/1/2002......... 700 758
6.375%, Due 2/15/2008........ 2,000 1,975
Chemical New York Corporation,
9.75%, Due 6/15/1999......... 900 936
First Chicago NBD, 9.875%, Due
8/15/2000.................... 1,000 1,081
Fleet Financial Corporation,
7.92%, Due 12/11/2026........ 1,180 1,249
NationsBank Corporation,
7.00%, Due 9/15/2001......... 1,000 1,027
6.375%, Due 2/15/2008........ 1,600 1,591
Skandinaviska Enskilda Banken,
6.594%, Due 6/29/2049........ 3,800 3,942
Wells Fargo Capital,
7.96%, Due 12/15/2026........ 2,000 2,132
----------
TOTAL BANKS................ 21,639
----------
FINANCE - 3.25%
Auburn Hills Trust, 12.00%, Due
5/1/2020..................... 1,650 2,648
Banponce Trust I, 8.327%, Due
2/1/2027..................... 1,000 1,066
Caterpillar Financial Services,
6.32%, Due 9/1/2000.......... 2,500 2,515
CNA Financial Corporation,
6.95%, Due 1/15/2018......... 1,675 1,643
</TABLE>
<TABLE>
<CAPTION>
Par
Amount Value
-------- ----------
(dollars in thousands)
<S> <C> <C>
Countrywide Funding
Corporation, MTN, 6.38%, Due
10/8/2002.................... $ 2,135 $ 2,130
Florida Windstorm Underwriting,
6.85%, Due 8/25/2007......... 2,950 3,010
Ford Motor Credit Company,
6.125%, Due 4/28/2003........ 2,125 2,115
General Electric Capital Corp,
7.875%, Due 12/1/2006........ 1,000 1,109
General Motors Acceptance
Corporation, 6.375%, Due
12/1/2001.................... 1,700 1,713
Lehman Brothers Holdings,
Incorporated,
7.41%, Due 5/25/1999......... 500 507
7.25%, Due 4/15/2003......... 1,370 1,417
7.375%, Due 5/15/2004........ 1,125 1,177
6.50%, Due 4/15/2008......... 2,900 2,872
Merrill Lynch Mortgage
Investors, Incorporated,
7.12%, Due 6/18/2029......... 660 683
Paine Webber Group,
Incorporated MTN, 7.74%, Due
1/30/2012.................... 2,200 2,381
Simon Debartolo Group LP,
6.75%, Due 7/15/2004......... 750 741
Spieker Properties Corporation,
7.125%, Due 12/1/2006........ 260 264
8.00%, Due 7/19/2005......... 290 309
Texaco, Incorporated MTN,
6.19%, Due 7/9/2003.......... 750 754
Travelers Property Casualty
Corporation, 6.75%, Due
4/15/2001.................... 2,600 2,647
United Dominion Realty Trust,
Incorporated, 7.25%, Due
1/15/2007.................... 1,000 1,008
URSA Major Rated Limited, MTN,
144A, 5.90%, Due 1/6/2003
(Note B)..................... 2,500 2,494
----------
TOTAL FINANCE.............. 35,203
----------
INDUSTRIAL - 5.44%
Albertsons, Incorporated,
6.375%, Due 6/1/2000......... 1,000 1,009
A.H. Belo Corporation, 7.25%,
Due 9/15/2027................ 930 973
Atlantic Richfield Corporation,
8.50%, Due 4/1/2012.......... 1,270 1,523
9.875%, Due 3/1/2016......... 700 939
Bemis Company, Incorporated,
6.70% Due 7/1/2005........... 1,000 1,022
Capital Cities/ABC, 8.875%, Due
12/15/2000................... 1,000 1,070
</TABLE>
See accompanying notes
27
<PAGE> 29
AMR INVESTMENT SERVICES BALANCED PORTFOLIO
SCHEDULE OF INVESTMENTS -- CONTINUED
April 30, 1998 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Par
Amount Value
-------- ----------
(dollars in thousands)
<S> <C> <C>
Coca-Cola Company, 6.625%, Due
10/1/2002.................... $ 1,000 $ 1,020
Coca-Cola Enterprises, 6.70%,
Due 10/15/2036............... 1,120 1,163
Comcast Cable Communication,
144A, 8.375%, Due 5/1/2007
(Note B)..................... 4,000 4,445
Dresser Industries, 6.25%, Due
6/1/2000..................... 2,000 2,013
E.I. DuPont de Nemours & Company,
6.75%, Due 10/15/2002........ 1,000 1,027
Exxon Capital Corporation,
7.45%, Due 12/15/2001........ 1,000 1,049
Ford Motor Company,
9.00%, Due 9/15/2001......... 1,000 1,085
7.70%, Due 5/15/1997......... 3,675 4,022
Halliburton Company, 6.30%, Due
8/5/2002..................... 1,165 1,172
Hershey Foods Company,
6.95%, Due 3/1/2007.......... 1,000 1,053
Hutchinson Technology, 144A,
6.00%, Due 3/15/2005 (Note
B)........................... 120 150
Ingersoll Rand Company, 6.34%,
Due 12/3/2001................ 2,100 2,110
International Business
Machines, Incorporated,
7.125%, Due 12/1/2096........ 3,590 3,733
The May Department Store
Company, 7.625%,
Due 8/15/2013................ 1,890 2,098
McDonald's Corporation, 6.50%,
Due 8/1/2007................. 1,000 1,025
Occidental Petroleum
Corporation, 6.40%, Due
4/1/2003..................... 1,035 1,031
6.50%, Due 4/1/2005.......... 520 518
Oracle Corporation, 6.91%, Due
2/15/2007.................... 1,250 1,279
Petroleum Geo-Services Corporation,
7.50%, Due 3/31/2007......... 1,070 1,145
7.125%, Due 3/30/2028........ 1,680 1,677
Philip Morris Companies,
Incorporated,
8.25%, Due 10/15/2003........ 3,540 3,831
8.375%, Due 1/15/2017........ 437 463
Potash Corporation Sask,
Incorporated, 7.125%,
Due 6/15/2007................ 630 648
Sara Lee Corporation, 6.00%,
Due 1/15/2008................ 1,200 1,185
</TABLE>
<TABLE>
<CAPTION>
Par
Amount Value
-------- ----------
(dollars in thousands)
<S> <C> <C>
Sears Roebuck Acceptance
Corporation MTN, 6.60%, Due
10/9/2001.................... $ 3,870 $ 3,908
6.71%, Due 9/17/2003......... 2,710 2,748
Stop & Shop Companies, 9.75%,
Due 2/1/2002................. 2,000 2,231
Sysco Corporation, 7.00%, Due
5/1/2006..................... 1,000 1,049
USA Waste Services,
Incorporated, 6.50%, Due
12/15/2002................... 1,300 1,301
WMX Technologies, Incorporated,
6.65%, Due 5/15/2005......... 1,200 1,211
Walt Disney, Incorporated,
6.75%, Due 3/30/2006......... 1,000 1,038
----------
TOTAL INDUSTRIAL........... 58,964
----------
TRANSPORTATION -- 0.34%
Norfolk Southern Corporation,
7.80%, Due 5/15/2027......... 1,035 1,160
NWA Trust, 11.30%,
Due 6/21/2014................ 1,945 2,514
----------
TOTAL TRANSPORTATION....... 3,674
----------
UTILITY - 0.22%
K N Energy, Incorporated,
6.65%, Due 3/1/2005.......... 850 853
Southern California Edison
Company, 8.25%, Due
2/1/2000..................... 1,425 1,477
----------
TOTAL UTILITY.............. 2,330
----------
FOREIGN BONDS - 1.11%
Enersis SA, 6.90%, Due
12/1/2006.................... 1,500 1,487
Fokus Bank AS, Variable Rate,
Due 9/29/2004................ 1,600 1,638
Foreningsbanken, Variable Rate,
Due 12/29/2049............... 3,250 3,263
Hydro-Quebec,
7.91%, Due 11/18/2024........ 670 832
Nordbanken, Variable Rate,
Due 10/29/2049............... 3,000 2,996
Province of Quebec,
7.00%, Due 1/30/2007......... 1,750 1,826
TOTAL FOREIGN BONDS........ 12,042
----------
TOTAL CORPORATE BONDS...... 133,852
----------
</TABLE>
See accompanying notes
28
<PAGE> 30
AMR INVESTMENT SERVICES BALANCED PORTFOLIO
SCHEDULE OF INVESTMENTS -- CONTINUED
April 30, 1998 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Shares Value
-------- ----------
(dollars in thousands)
<S> <C> <C>
PREFERRED STOCK - 0.13%
Home Ownership Funding 2,
Series 144A (Note B)......... 2 $ 1,451
----------
TOTAL PREFERRED STOCK...... 1,493
----------
COMMON STOCK - 59.51%
BASIC MATERIALS - 4.49%
AGRICULTURAL PRODUCTS - 0.14%
New Holland N.V................ 65,000 1,593
----------
TOTAL AGRICULTURAL
PRODUCTS................. 1,593
----------
ALUMINUM - 0.58%
Alumax, Incorporated........... 48,400 2,390
Aluminum Company of America.... 24,000 1,860
Reynolds Metals Company........ 30,000 1,980
----------
TOTAL ALUMINUM PRODUCTS.... 6,230
----------
CHEMICALS - 2.29%
Airgas, Incorporated........... 173,450 2,688
ARCO Chemical Company.......... 30,000 1,594
Dow Chemical................... 20,000 1,934
E.I. DuPont de Nemours &
Company...................... 23,000 1,675
Eastman Chemical Company....... 39,400 2,709
FMC Corporation (non-income
producing)................... 52,550 4,076
Great Lakes Chemical
Corporation.................. 26,000 1,307
Millenium Chemicals,
Incorporated................. 178,571 6,406
PPG Industries, Incorporated... 34,500 2,439
----------
TOTAL CHEMICALS............ 24,828
----------
CONSTRUCTION - 0.12%
DeBeers Construction Mines,
Limited...................... 51,700 1,331
----------
TOTAL CONSTRUCTION......... 1,331
----------
CONTAINERS/PACKAGING (PAPER) - 0.14%
Union Camp Corporation......... 25,000 1,509
----------
TOTAL
CONTAINERS/PACKAGING..... 1,509
----------
METALS MINING - 0.01%
Commonwealth Industries,
Incorporated................. 3,400 58
----------
TOTAL METALS MINING........ 58
----------
PAPER & FOREST PRODUCTS - 1.20%
Boise Cascade Corporation...... 32,700 1,228
Georgia Pacific Corporation.... 15,600 1,204
</TABLE>
<TABLE>
<CAPTION>
Shares Value
-------- ----------
(dollars in thousands)
<S> <C> <C>
Georgia Pacific Corporation.... 23,500 $ 602
International Paper Company.... 61,000 3,183
Louisiana Pacific
Corporation.................. 59,200 1,295
Mead Corporation............... 44,000 1,523
Westvaco Corporation........... 44,000 1,334
Weyerhaeuser Company........... 45,000 2,593
----------
TOTAL PAPER & FOREST
PRODUCTS................. 12,962
----------
STEEL - 0.01%
Citation Corporation
(non-income producing)....... 1,896 40
WHX Corporation (non-income
producing)................... 2,400 38
----------
TOTAL STEEL................ 78
----------
TOTAL BASIC MATERIALS...... 48,589
----------
CAPITAL GOODS - 6.77%
AEROSPACE/DEFENSE - 1.27%
Avteam, Incorporated (non-
income producing)............ 27,300 293
Lockheed Martin Corporation.... 86,788 9,666
Northrop Corporation........... 15,000 1,585
Thiokol Corporation............ 41,100 2,214
----------
TOTAL AEROSPACE/DEFENSE.... 13,758
----------
ELECTRICAL EQUIPMENT - 1.62%
The Carbide/Graphite Group
(non-income producing)....... 7,700 248
CBS Corporation................ 47,100 1,678
Hadco Corporation.............. 1,400 53
Honeywell, Incorporated........ 124,500 11,594
Hutchinson Technology.......... 2,500 77
Philips Electronics N.V........ 18,000 1,620
Rockwell International
Corporation.................. 35,000 1,958
Stoneridge, Incorporated (non-
income producing)............ 14,800 309
----------
TOTAL ELECTRICAL
EQUIPMENT................ 17,537
----------
MACHINERY-DIVERSIFIED - 0.90%
Aviall Incorporated............ 4,100 57
Caterpillar Incorporated....... 27,000 1,537
Deere and Company.............. 124,200 7,258
Denison International PLC ADR
(non-income producing)....... 14,800 266
Dover Corporation.............. 11,500 454
Hussman International,
Incorporated................. 4,500 78
</TABLE>
See accompanying notes
29
<PAGE> 31
AMR INVESTMENT SERVICES BALANCED PORTFOLIO
SCHEDULE OF INVESTMENTS -- CONTINUED
April 30, 1998 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Shares Value
-------- ----------
(dollars in thousands)
<S> <C> <C>
Silicon Valley Group
Incorporated................. 4,800 $ 91
----------
TOTAL MACHINERY-
DIVERSIFIED.............. 9,741
----------
MANUFACTURING (DIVERSIFIED) - 2.24%
Coltec Industries, Incorporated
(non-income producing)....... 101,800 2,545
Eaton Corporation.............. 10,000 924
Harsco Corporation............. 40,000 1,840
Millipore Corporation.......... 75,925 2,619
Tenneco, Incorporated.......... 153,100 6,593
Textron, Incorporated.......... 124,600 9,750
----------
TOTAL MANUFACTURING........ 24,271
----------
OFFICE EQUIPMENT & SUPPLIES - 0.02%
Micros Systems, Incorporated
(non-income producing)....... 8,353 227
----------
TOTAL OFFICE EQUIPMENT &
SUPPLY................... 227
----------
WASTE MANAGEMENT - 0.72%
Waste Management,
Incorporated................. 232,400 7,785
----------
TOTAL WASTE MANAGEMENT..... 7,785
----------
TOTAL CAPITAL GOODS........ 73,319
----------
COMMUNICATION SERVICE - 3.05%
TELEPHONE - 2.73%
Alltel Corporation............. 55,000 2,351
Bell Atlantic Corporation...... 12,328 1,153
GTE Corporation................ 119,400 6,977
SBC Communications............. 217,768 9,024
US West, Incorporated.......... 190,200 10,033
----------
TOTAL TELEPHONE............ 29,538
----------
TELEPHONE LONG DISTANCE - 0.32%
AT&T Corporation............... 58,000 3,484
----------
TOTAL TELEPHONE LONG
DISTANCE................. 3,484
----------
TOTAL COMMUNICATION
SERVICE.................. 33,022
----------
CONSUMER STAPLES - 3.61%
BEVERAGES-ALCOHOLIC - 1.14%
Anheuser Busch Companies,
Incorporated................. 262,700 12,035
Brown Forman Corporation....... 5,575 316
----------
TOTAL BEVERAGES-
ALCOHOLIC................ 12,351
----------
BROADCASTING (TV RADIO CABLE) - 0.02%
Groupe AB SA................... 38,720 230
----------
TOTAL BROADCASTING (TV
RADIO CABLE)............. 230
----------
</TABLE>
<TABLE>
<CAPTION>
Shares Value
-------- ----------
(dollars in thousands)
<S> <C> <C>
ENTERTAINMENT - 0.01%
Alliance Communications
Corporation.................. 5,900 $ 109
----------
TOTAL ENTERTAINMENT........ 109
----------
FOODS - 0.39%
J & J Snack Foods
Corporation.................. 8,100 158
Nabisco Holdings Corporation,
Class A...................... 31,975 1,529
RJR Nabisco Holdings........... 86,850 2,416
Zapata Corporation............. 8,500 108
----------
TOTAL FOODS................ 4,211
----------
HOUSEHOLD PRODUCTS (NON-DURABLE) - 0.32%
First Brands Corporation....... 103,750 2,782
Fort James Corporation......... 13,300 660
----------
TOTAL HOUSEHOLD PROD
(NON-DURABLE)............ 3,442
----------
HOUSEWARES - 0.22%
Fortune Brands, Incorporated... 50,000 1,844
Tupperware, Incorporated....... 20,000 541
----------
TOTAL HOUSEWARES........... 2,385
----------
RETAIL STORES-FOOD CHAINS - 0.03%
Dominick's Supermarkets,
Incorporated (non-income
producing)................... 7,300 292
----------
TOTAL RETAIL STORES-FOOD
CHAINS................... 292
----------
TOBACCO - 1.48%
Gallaher Group PLC, ADR (non-
income producing)............ 79,400 1,633
Hanson PLC, ADR................ 34,150 1,012
Imperial Tobacco Group PLC..... 23,300 329
Philip Morris Companies,
Incorporated................. 351,150 13,102
----------
TOTAL TOBACCO.............. 16,076
----------
TOTAL CONSUMER STAPLES..... 39,096
----------
CONSUMER-CYCLICALS - 8.17%
AUTO PARTS & EQUIPMENT - 1.32%
Dana Corporation............... 143,300 8,473
Goodyear Tire and Rubber
Company...................... 35,800 2,506
ITT Industries, Incorporated... 92,600 3,374
----------
TOTAL AUTO PARTS &
EQUIPMENT................ 14,353
----------
AUTOMOBILES - 3.01%
Chrysler Corporation........... 157,800 6,342
Ford Motor Company............. 305,000 13,973
</TABLE>
See accompanying notes
30
<PAGE> 32
AMR INVESTMENT SERVICES BALANCED PORTFOLIO
SCHEDULE OF INVESTMENTS -- CONTINUED
April 30, 1998 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Shares Value
-------- ----------
(dollars in thousands)
<S> <C> <C>
General Motors Corporation..... 179,500 $ 12,094
Meritor Automotive,
Incorporated................. 8,333 215
----------
TOTAL AUTOMOBILES.......... 32,624
----------
BUILDING MATERIALS GROUP - 0.08%
Armstrong World Industries,
Incorporated................. 7,700 660
NCI Building Systems,
Incorporated (non-income
producing)................... 3,325 173
----------
TOTAL BUILDING MATERIALS
GROUP.................... 833
----------
FOOTWEAR - 0.31%
Nike, Incorporated............. 21,200 1,012
Nine West Group,
Incorporated................. 83,975 2,336
----------
TOTAL FOOTWEAR............. 3,348
----------
GAMING LOTTERY & PARIMUTUEL - 0.04%
American Coin Merchandising,
Incorporated (non-income
producing)................... 19,700 414
Anchor Gaming.................. 800 67
----------
TOTAL GAMING LOTTERY &
PARIMUTUEL............... 481
----------
HOUSEHOLD FURNISHINGS & APPLIANCES - 0.25%
Whirlpool Corporation.......... 37,000 2,664
----------
TOTAL HOUSEHOLD FURNISHINGS
& APPLIANCES............. 2,664
----------
LEISURE TIME (PRODUCTS) - 0.57%
Hasbro, Incorporated........... 80,925 2,979
Mattel, Incorporated........... 82,850 3,174
----------
TOTAL LEISURE TIME
(PRODUCTS)............... 6,153
----------
PUBLISHING - 0.38%
A.H. Belo, Incorporated, Class
A............................ 71,425 3,781
Playboy Enterprises............ 16,400 285
----------
TOTAL PUBLISHING........... 4,066
----------
RETAIL - 1.88%
Friedmans, Incorporated........ 21,300 445
Intimate Brands,
Incorporated................. 1,345 39
J.C. Penney Company,
Incorporated................. 63,700 4,527
K Mart Corporation............. 294,500 5,135
Sears Roebuck & Company........ 157,700 9,354
Toys R Us, Incorporated........ 29,500 813
----------
TOTAL RETAIL............... 20,313
----------
</TABLE>
<TABLE>
<CAPTION>
Shares Value
-------- ----------
(dollars in thousands)
<S> <C> <C>
SERVICES (ADVERTISING/MARKETING) - 0.25%
Firstservice Corporation....... 14,300 $ 171
Mac-Gray Corporation (non-
income producing)............ 1,000 16
Pittston Company............... 53,200 2,081
Princeton Video Image,
Incorporated................. 6,600 40
Ralco Holdings, Incorporated... 14,500 288
Wackenhut Corporation.......... 3,100 67
----------
TOTAL SERVICES............. 2,663
----------
TEXTILES (APPAREL) - 0.08%
Russell Corporation............ 34,000 918
----------
TOTAL TEXTILES (APPAREL)... 918
----------
TOTAL CONSUMER-
CYCLICALS................ 88,416
----------
ENERGY - 6.31%
OIL & GAS - 3.00%
Abraxas Petroleum Corporation
(non-income producing)....... 14,291 145
Baker Hughes, Incorporated..... 232,200 9,404
Burlington Resources........... 54,486 2,561
Coho Energy, Incorporated...... 12,757 96
Dresser Industries,
Incorporated................. 202,300 10,697
Oryx Energy Company............ 99,125 2,590
Transcoastal Marine Services,
Incorporated (non-income
producing)................... 2,700 31
Ultramar Diamond Shamrock
Corporation.................. 58,000 1,874
Union Pacific Resource Group,
Incorporated................. 108,800 2,598
Union Texas Petroleum Holdings,
Incorporated................. 123,500 2,493
----------
TOTAL OIL & GAS............ 32,489
----------
OIL (DOMESTIC INTEGRATED) - 2.15%
Atlantic Richfield Company..... 69,000 5,382
Occidental Petroleum
Corporation.................. 233,000 6,859
Phillips Petroleum Company..... 222,100 11,008
----------
TOTAL OIL (DOMESTIC
INTEGRATED).............. 23,249
----------
OIL (INTERNATIONAL INTEGRATED) - 1.16%
Amoco Corporation.............. 47,200 2,089
British Petroleum PLC.......... 44,252 4,182
Elf Aquitaine.................. 35,100 2,279
Exxon Corporation.............. 30,800 2,246
</TABLE>
See accompanying notes
31
<PAGE> 33
AMR INVESTMENT SERVICES BALANCED PORTFOLIO
SCHEDULE OF INVESTMENTS -- CONTINUED
April 30, 1998 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Shares Value
-------- ----------
(dollars in thousands)
<S> <C> <C>
Royal Dutch Petroleum Company.. 32,100 $ 1,816
----------
TOTAL OIL (INTERNATIONAL
INTEGRATED).............. 12,612
----------
TOTAL ENERGY............... 68,350
----------
FINANCIALS - 14.52%
Banks - 6.41%
Banc One Corporation........... 46,640 2,743
BankAmerica Corporation........ 121,500 10,328
Bankers Trust Company New
York......................... 78,550 10,143
Chase Manhattan Corporation.... 113,000 15,658
First Chicago NBD.............. 163,781 15,211
First Midwest Bank,
Incorporated................. 2,600 135
First Security Corporation..... 67,500 1,654
Fleet Financial Group,
Incorporated................. 39,800 3,438
J.P.Morgan & Company,
Incorporated................. 30,675 4,026
National City Corporation...... 13,000 900
PNC Bank Corporation........... 86,200 5,210
----------
TOTAL BANKS................ 69,446
----------
CONSUMER FINANCE - 0.84%
Associates First Capital
Corporation.................. 60,280 4,506
Beneficial Corporation......... 20,000 2,607
Household International,
Incorporated................. 15,000 1,972
----------
TOTAL CONSUMER FINANCE..... 9,085
----------
FINANCIAL - 2.92%
Ace, Limited................... 73,200 2,772
American Express Company....... 122,500 12,495
American General Corporation... 28,600 1,905
Executive Risk, Incorporated... 1,000 67
Federal Home Loan Mortgage
Corporation.................. 70,150 3,249
Federal National Mortgage
Association.................. 83,225 4,983
FPIC Insurance Group (non-
income producing)............ 2,947 102
Fund American Enterprises,
Incorporated................. 7,425 1,037
Morgan Stanley Dean Witter
Discover & Company........... 41,200 3,250
Mutual Risk Management
Limited...................... 3,400 115
The PMI Group, Incorporated.... 20,000 1,625
----------
TOTAL FINANCIAL............ 31,600
----------
</TABLE>
<TABLE>
<CAPTION>
Shares Value
-------- ----------
(dollars in thousands)
<S> <C> <C>
INSURANCE (LIFE/HEALTH) - 0.15%
Aetna, Incorporated............ 17,000 $ 1,374
Esg Re Limited................. 9,100 234
----------
TOTAL INSURANCE
(LIFE/HEALTH)............ 1,608
----------
INSURANCE (MULTI-LINE) - 0.49%
Lincoln National Corporation... 25,000 2,220
Travelers Corporation.......... 51,205 3,133
----------
TOTAL INSURANCE
(MULTI-LINE)............. 5,353
----------
INSURANCE BROKERS - 0.73%
Aon Corporation................ 116,450 7,511
Healthplan Services
Corporation.................. 16,100 392
----------
TOTAL INSURANCE BROKERS.... 7,903
----------
INSURANCE-PROPERTY-CASUALTY - 2.18%
Allstate Corporation........... 51,800 4,986
American Financial Group,
Incorporated................. 66,100 2,879
Chubb Corporation.............. 59,000 4,657
IPC Holdings, Limited.......... 6,530 211
Mid Ocean Limited.............. 42,000 3,166
Old Republic International
Corporation.................. 65,950 2,984
Safeco Corporation............. 25,000 1,248
Stirling Cooke Brown
Holdings..................... 5,800 164
TIG Holdings, Incorporated..... 135,800 3,268
----------
TOTAL INSURANCE-
PROPERTY-CASUALTY........ 23,563
----------
INVESTMENT BANKING/BROKERAGE - 0.32%
Paine Webber Group,
Incorporated................. 78,350 3,511
----------
TOTAL INVESTMENT
BANKING/BROKERAGE........ 3,511
----------
SAVINGS & LOAN COMPANIES - 0.48%
Coastal Bancorp,
Incorporated................. 717 26
H.F. Ahmanson & Company........ 35,000 2,669
Washington Federal,
Incorporated................. 759 21
Washington Mutual,
Incorporated................. 35,000 2,452
----------
TOTAL SAVINGS & LOAN
COMPANIES................ 5,168
----------
TOTAL FINANCIALS........... 157,237
----------
HEALTH CARE - 1.09%
American Home Products
Corporation.................. 15,000 1,397
Baxter International,
Incorporated................. 32,000 1,774
Bristol-Myers Squibb Company... 25,400 2,689
</TABLE>
See accompanying notes
32
<PAGE> 34
AMR INVESTMENT SERVICES BALANCED PORTFOLIO
SCHEDULE OF INVESTMENTS -- CONTINUED
April 30, 1998 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Shares Value
-------- ----------
(dollars in thousands)
<S> <C> <C>
Foundation Health Systems...... 86,500 $ 2,503
Pharmacia & Upjohn,
Incorporated................. 82,300 3,462
----------
TOTAL HEALTH CARE.......... 11,825
----------
TECHNOLOGY - 3.26%
COMPUTERS - 1.06%
Data General Corporation (non-
income producing)............ 79,400 1,211
International Business Machines
Corporation.................. 67,000 7,764
Radisys Corporation............ 6,900 188
Seagate Technology............. 88,000 2,349
----------
TOTAL COMPUTERS............ 11,512
----------
ELECTRONICS DEFENSE - 0.63%
Raytheon Company............... 123,343 6,807
----------
TOTAL ELECTRONICS
DEFENSE.................. 6,807
----------
ELECTRONICS-SEMICONDUCTORS - 0.24%
MEMC Electronic Materials,
Incorporated................. 62,000 872
National Semiconductor
Corporation.................. 5,000 110
VLSI Technology, Incorporated
(non-income producing)....... 77,300 1,594
----------
TOTAL ELECTRONICS-
SEMICONDUCTORS........... 2,576
----------
SERVICES - 1.33%
Eastman Kodak Company.......... 23,000 1,660
Unova, Incorporated............ 5,400 126
Vanstar Corporation............ 18,700 249
Xerox Corporation.............. 108,800 12,349
----------
TOTAL SERVICES............. 14,384
----------
TOTAL TECHNOLOGY........... 35,279
----------
TRANSPORTATION - 1.90%
AIR FREIGHT - 0.01%
Airnet Systems................. 5,800 157
----------
TOTAL AIR FREIGHT.......... 157
----------
RAILROADS - 1.85%
Burlington Northern,
Incorporated................. 17,800 1,762
CSX Corporation................ 147,200 7,728
GATX Corporation............... 25,000 2,072
Norfolk Southern Corporation... 221,300 7,400
Union Pacific Capital Trust.... 20,000 1,096
----------
TOTAL RAILROADS............ 20,058
----------
</TABLE>
<TABLE>
<CAPTION>
Shares Value
-------- ----------
(dollars in thousands)
<S> <C> <C>
SHIPPING - 0.02%
Teekay Shipping Corporation.... 5,792 $ 178
----------
TOTAL SHIPPING............. 178
----------
WATER UTILITIES - 0.02%
Trico Marine Services,
Incorporated................. 8,700 197
----------
TOTAL WATER UTILITIES...... 197
----------
TOTAL TRANSPORTATION....... 20,590
----------
UTILITIES - 6.34%
ELECTRIC COMPANIES - 5.05%
Central & Southwest
Corporation.................. 97,600 2,544
CMS Energy Corporation......... 167,200 7,304
Dominion Resources,
Incorporated................. 78,800 3,117
DTE Energy Company............. 109,700 4,299
Edison International........... 65,000 1,938
Entergy Corporation............ 198,500 4,938
Houston Industries,
Incorporated................. 263,400 7,655
Illinova Corporation........... 75,000 2,292
Northeast Utilities............ 359,400 5,076
Peco Energy Company............ 73,000 1,738
Potomac Electric Power......... 44,400 1,088
PP & L Resources,
Incorporated................. 140,000 3,229
Public Service Enterprise
Group, Incorporated.......... 38,400 1,289
Rochester Gas & Electric,
Incorporated................. 30,000 934
Scana Corporation.............. 28,000 836
Texas Utilities Company........ 85,600 3,424
Unicom Corporation............. 85,500 2,971
----------
TOTAL ELECTRIC COMPANIES... 54,672
----------
NATURAL GAS-DISTRIBUTION-PIPE LINE - 1.29%
Coastal Corporation............ 34,325 2,452
El Paso Natural Gas Company.... 27,688 1,023
Equitable Resources,
Incorporated................. 37,100 1,206
Peoples Energy Corporation..... 46,000 1,668
Williams Companies,
Incorporated................. 243,235 7,692
----------
TOTAL NATURAL GAS-
DISTRIBUTION- PIPE
LINE..................... 14,041
----------
TOTAL UTILITIES............ 68,713
----------
TOTAL COMMON STOCKS............ 644,436
----------
</TABLE>
See accompanying notes
33
<PAGE> 35
AMR INVESTMENT SERVICES BALANCED PORTFOLIO
SCHEDULE OF INVESTMENTS -- CONTINUED
April 30, 1998 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<S> <C> <C>
Par
Amount Value
-------- ----------
(dollars in thousands)
SHORT-TERM INVESTMENTS (NOTE A) - 19.00%
AMR Investments Strategic Cash
Business Trust............... $119,793 $ 119,793
----------
TOTAL SHORT-TERM
INVESTMENTS.............. 205,771
----------
TOTAL INVESTMENTS - 116.74%
(COST $1,056,357)............ 1,264,276
----------
LIABILITIES, NET OF OTHER
ASSETS - (16.74%)............ (181,307)
----------
TOTAL NET ASSETS - 100%........ $1,082,969
==========
</TABLE>
- ---------------
Based on the cost of investments of $1,057,533 for federal income tax purposes
at April 30, 1998, the aggregate gross unrealized appreciation was $213,670, the
aggregate gross unrealized depreciation was $6,927 and the net unrealized
appreciation of investments was $206,743.
(A) Rates associated with short-term investments represent yield to maturity.
(B) Security exempt from registration under Rule 144A of the Securities Act of
1933. These securities may be resold in transactions exempt from
registration, normally to qualified institutional buyers. At the period end,
the value of these securities amounted to $8,540,000 or 0.8% of net assets.
ABBREVIATIONS:
ADR - American Depositary Receipt
AS - Company
LP - Limited Partnership
MTN - Medium-Term Note
NV - Company
PLC - Public Limited Corporation
REMIC - Real Estate Mortgage Investment Conduit
SA - Company
TBA - To Be Announced
See accompanying notes
34
<PAGE> 36
AMR INVESTMENT SERVICES GROWTH AND INCOME PORTFOLIO
SCHEDULE OF INVESTMENTS
April 30, 1998 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Shares Value
---------- ----------
(dollars in thousands)
<S> <C> <C>
CONVERTIBLE STOCK - 0.02%
Hutchinson Technology,
Incorporated, Series 144A
(Note B).................... 280,000 $ 351
----------
TOTAL CONVERTIBLE STOCK... 351
----------
COMMON STOCKS - 98.23%
BASIC MATERIALS - 7.80%
AGRICULTURAL PRODUCTS - 0.22%
New Holland NV................ 185,000 4,532
----------
TOTAL AGRICULTURAL
PRODUCTS................ 4,532
----------
ALUMINUM - 0.89%
Alumax, Incorporated.......... 164,000 8,097
Aluminum Company of America... 58,000 4,495
Reynolds Metals Company....... 90,000 5,940
----------
TOTAL ALUMINUM............ 18,532
----------
CHEMICALS - 4.28%
Airgas, Incorporated.......... 623,475 9,664
ARCO Chemical Company......... 96,000 5,100
Dow Chemical Company.......... 51,000 4,931
E.I. Du Pont de Nemours &
Company..................... 60,000 4,369
Eastman Chemical Company...... 203,875 14,016
FMC Corporation (non-income
producing).................. 257,850 19,999
Great Lakes Chemical
Corporation................. 73,400 3,688
Millennium Chemicals
Incorporated................ 538,371 19,314
PPG Industries,
Incorporated................ 115,600 8,171
----------
TOTAL CHEMICALS........... 89,252
----------
CONTAINERS/PACKAGING
(PAPER) - 0.20%
Union Camp Corporation........ 71,000 4,287
----------
TOTAL CONTAINERS/
PACKAGING (PAPER)....... 4,287
----------
CONSTRUCTION - 0.22%
DeBeers Construction Mines,
Limited..................... 175,100 4,509
----------
TOTAL CONSTRUCTION........ 4,509
----------
METALS MINING- 0.01%
Commonwealth Industries
Incorporated................ 7,600 129
----------
TOTAL METALS MINING....... 129
----------
PAPER & FOREST PRODUCTS - 1.82%
Boise Cascade Corporation..... 107,000 4,019
Georgia-Pacific Corporation... 108,700 5,090
International Paper Company... 179,000 9,342
</TABLE>
<TABLE>
<CAPTION>
Shares Value
---------- ----------
(dollars in thousands)
<S> <C> <C>
Louisiana Pacific
Corporation................. 155,900 $ 3,410
Mead Corporation.............. 124,000 4,293
Westvaco Corporation.......... 162,100 4,914
Weyerhaeuser Company.......... 120,000 6,915
----------
TOTAL PAPER & FOREST
PRODUCTS................ 37,983
----------
STEEL - 0.16%
Citation Corporation
(non-income producing)...... 4,468 93
USX-US Steel Group............ 79,700 3,118
WHX Corporation (non-income
producing).................. 5,500 86
----------
TOTAL STEEL............... 3,297
----------
TOTAL BASIC MATERIALS..... 162,521
----------
CAPITAL GOODS - 11.47%
AEROSPACE/DEFENSE - 2.44%
Avteam, Incorporated (non-
income producing)........... 64,200 690
Lockheed Martin Corporation... 278,648 31,034
Northrop Grumman
Corporation................. 51,000 5,390
Thiokol Corporation........... 254,500 13,711
----------
TOTAL AEROSPACE/
DEFENSE................. 50,825
----------
ELECTRICAL EQUIPMENT - 2.37%
CBS Corporation............... 127,300 4,535
The Carbide/Graphite Group
(non-income producing)...... 18,300 590
Hadco Corporation............. 3,100 119
Honeywell, Incorporated....... 359,500 33,478
Hutchinson Technology......... 6,000 186
Philips Electronics N.V....... 52,000 4,680
Rockwell International
Corporation................. 90,000 5,034
Stoneridge, Incorporated (non-
income producing)........... 34,800 726
----------
TOTAL ELECTRICAL
EQUIPMENT............... 49,348
----------
MACHINERY - DIVERSIFIED - 1.66%
Aviall Incorporated........... 11,300 158
Caterpillar, Incorporated..... 90,300 5,141
Deere and Company............. 344,600 20,138
Denison International PLC, ADR
(non-income producing)...... 34,700 625
Dover Corporation............. 203,100 8,022
Hussman International,
Incorporated................ 10,600 184
Silicon Valley Group
Incorporated................ 11,500 218
----------
TOTAL MACHINERY -
DIVERSIFIED............. 34,486
----------
</TABLE>
See accompanying notes
35
<PAGE> 37
AMR INVESTMENT SERVICES GROWTH AND INCOME PORTFOLIO
SCHEDULE OF INVESTMENTS - CONTINUED
April 30, 1998 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Shares Value
---------- ----------
(dollars in thousands)
<S> <C> <C>
MANUFACTURING
(DIVERSIFIED) - 3.97%
Coltec Industries,
Incorporated (non-income
producing).................. 484,600 $ 12,115
Eaton Corporation............. 53,000 4,896
Harsco Corporation............ 112,000 5,152
Millipore Corporation......... 347,875 12,002
Tenneco, Incorporated......... 396,500 17,074
Textron, Incorporated......... 401,500 31,417
----------
TOTAL MANUFACTURING
(DIVERSIFIED)........... 82,656
----------
OFFICE EQUIPMENT & SUPPLIES - 0.02%
Micros Systems, Incorporated
(non-income producing)...... 8,940 526
----------
TOTAL OFFICE EQUIPMENT &
SUPPLIES................ 526
----------
WASTE MANAGEMENT - 1.01%
Waste Management,
Incorporated................ 630,500 21,122
----------
TOTAL WASTE MANAGEMENT.... 21,122
----------
TOTAL CAPITAL
GOODS................... 238,963
----------
COMMUNICATION SERVICE - 4.30%
TELEPHONE - 3.89%
Alltel Corporation............ 122,300 5,228
Bell Atlantic Corporation..... 46,720 4,371
GTE Corporation............... 329,800 19,273
SBC Communications,
Incorporated................ 566,354 23,468
US West, Incorporated......... 543,600 28,675
----------
TOTAL TELEPHONE........... 81,015
----------
TELEPHONE LONG DISTANCE - 0.41%
AT&T Corporation.............. 143,100 8,595
----------
TOTAL TELEPHONE LONG
DISTANCE................ 8,595
----------
TOTAL COMMUNICATION
SERVICE................. 89,610
----------
CONSUMER STAPLES - 6.27%
BEVERAGES - ALCOHOLIC - 1.95%
Anheuser-Busch Companies,
Incorporated................ 857,900 39,303
Brown-Forman, Incorporated.... 23,825 1,349
----------
TOTAL BEVERAGES -
ALCOHOLIC............... 40,652
----------
BROADCASTING (TV RADIO CABLE) - 0.03%
Groupe AB SA, ADR (non-income
producing).................. 89,960 534
----------
TOTAL BROADCASTING (TV
RADIO CABLE)............ 534
----------
</TABLE>
<TABLE>
<CAPTION>
Shares Value
---------- ----------
(dollars in thousands)
<S> <C> <C>
ENTERTAINMENT - 0.01%
Alliance Communications
Corporation................. 14,000 $ 259
----------
TOTAL
ENTERTAINMENT........... 259
----------
FOODS - 1.00%
J & J Snack Foods,
Corporation................. 19,400 378
Nabisco Holdings Corporation,
Class A..................... 218,825 10,463
RJR Nabisco Holdings
Corporation................. 352,170 9,795
Zapata, Corporation........... 20,000 255
----------
TOTAL FOODS............... 20,891
----------
HOUSEHOLD PRODUCTS (NON-DURABLE) - 0.52%
First Brands Corporation...... 388,150 10,407
Fort James Corporation........ 6,400 318
----------
TOTAL HOUSEHOLD PRODUCTS
(NON-DURABLE)........... 10,725
----------
HOUSEWARES - 0.34%
Fortune Brands,
Incorporated................ 142,000 5,236
Tupperware, Incorporated...... 65,000 1,759
----------
TOTAL HOUSEWARES.......... 6,995
----------
RETAIL STORES - FOOD CHAINS - 0.03%
Dominicks Supermarkets
Incorporated................ 17,200 689
----------
TOTAL RETAIL STORES - FOOD
CHAINS.................. 689
----------
TOBACCO - 2.39%
Gallaher Group PLC, ADR (non-
income producing)........... 277,200 5,700
Hanson PLC, ADR............... 81,087 2,402
Imperial Tobacco Group PLC.... 108,400 1,531
Philip Morris Company,
Incorporated................ 1,075,750 40,139
----------
TOTAL TOBACCO............. 49,772
----------
TOTAL CONSUMER STAPLES.... 130,517
----------
CONSUMER - CYCLICALS - 13.09%
AUTO PARTS & EQUIPMENT - 2.02%
Dana Corporation.............. 397,800 23,520
Goodyear Tire & Rubber
Company..................... 105,100 7,357
ITT Industries,
Incorporated................ 308,800 11,252
----------
TOTAL AUTO PARTS &
EQUIPMENT............... 42,129
----------
AUTOMOBILES - 4.48%
Chrysler Corporation.......... 416,100 16,722
Ford Motor Company............ 837,600 38,373
General Motors Corporation.... 559,100 37,669
</TABLE>
See accompanying notes
36
<PAGE> 38
AMR INVESTMENT SERVICES GROWTH AND INCOME PORTFOLIO
SCHEDULE OF INVESTMENTS - CONTINUED
April 30, 1998 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Shares Value
---------- ----------
(dollars in thousands)
<S> <C> <C>
Meritor Automotive,
Incorporated................ 20,333 $ 525
----------
TOTAL AUTOMOBILES......... 93,289
----------
BUILDING MATERIALS GROUP - 0.20%
Armstrong World Industries
Incorporated................ 43,300 3,713
NCI Building Systems,
Incorporated (non-income
producing).................. 7,897 411
----------
TOTAL BUILDING MATERIALS
GROUP................... 4,124
----------
FOOTWEAR - 0.68%
Nike, Incorporated............ 90,400 4,317
Nine West Group,
Incorporated................ 358,000 9,957
----------
TOTAL FOOTWEAR............ 14,274
----------
GAMING LOTTERY & PARIMUTUEL - 0.05%
American Coin Merchandising,
Incorporated (non-income
producing).................. 46,600 979
Anchor Gaming................. 1,800 152
----------
TOTAL GAMING LOTTERY &
PARIMUTUAL.............. 1,131
----------
HOUSEHOLD FURNISHINGS & APPLIANCES - 0.35%
Whirlpool Corporation......... 100,000 7,200
----------
TOTAL HOUSEHOLD
FURNISHINGS &
APPLIANCES.............. 7,200
----------
LEISURE TIME (PRODUCTS) - 1.18%
Hasbro, Incorporated.......... 340,975 12,552
Mattel, Incorporated.......... 312,350 11,967
----------
TOTAL LEISURE TIME
(PRODUCTS).............. 24,519
----------
PUBLISHING - 0.60%
A. H. Belo, Incorporated,
Class A..................... 223,575 11,835
Playboy Enterprises
Incorporated................ 38,500 669
----------
TOTAL PUBLISHING.......... 12,504
----------
RETAIL - 2.82%
Friedman's Incorporated (non-
income producing)........... 50,000 1,044
Intimate Brands,
Incorporated................ 3,265 95
K Mart Corporation............ 747,000 13,026
J.C. Penney Company,
Incorporated................ 209,800 14,909
Sears Roebuck & Company....... 438,400 26,003
Toys R Us, Incorporated....... 132,500 3,652
----------
TOTAL RETAIL.............. 58,729
----------
SERVICES - 0.59%
Princeton Video Image
Incorporated................ 15,600 94
</TABLE>
<TABLE>
<CAPTION>
Shares Value
---------- ----------
(dollars in thousands)
<S> <C> <C>
Firstservice Corporation...... 33,400 $ 399
Mac-Gray Corporation (non-
income producing)........... 2,600 43
Pittston Brinks Group......... 278,000 10,877
Ralcorp Holdings Incorporated
New......................... 34,200 680
Wackenhut Corporation......... 7,300 158
----------
TOTAL SERVICES............ 12,251
----------
TEXTILES (APPAREL) - 0.12%
Russell Corporation........... 95,000 2,565
----------
TOTAL TEXTILES
(APPAREL)............... 2,565
----------
TOTAL CONSUMER -
CYCLICALS............... 272,715
----------
ENERGY - 11.68%
OIL & GAS - 4.84%
Abraxas Petroleum Corporation
(non-income producing)...... 33,518 339
Baker Hughes, Incorporated.... 596,500 24,158
Burlington Resources.......... 202,141 9,501
Coho Energy, Incorporated
(non-income producing)...... 30,064 227
Dresser Industries,
Incorporated................ 554,100 29,298
Oryx Energy Company........... 370,475 9,679
Transcoastal Marine Services,
Incorporated (non-income
producing).................. 6,200 71
Ultramar Diamond Shamrock
Corporation................. 142,000 4,588
Union Pacific Resources Group,
Incorporated................ 490,300 11,706
Union Texas Petroleum
Holdings, Incorporated...... 555,900 11,222
----------
TOTAL OIL & GAS........... 100,789
----------
OIL (DOMESTIC INTEGRATED) - 3.88%
Atlantic Richfield
Corporation................. 430,600 33,587
Occidental Petroleum
Corporation................. 592,200 17,433
Phillips Petroleum Company.... 603,000 29,886
----------
TOTAL OIL (DOMESTIC
INTEGRATED)............. 80,906
----------
OIL (INTERNATIONAL INTEGRATED) - 2.96%
Amoco Corporation............. 119,000 5,266
British Petroleum, PLC, ADR... 136,176 12,869
Elf Aquitaine SA, ADR......... 119,600 7,767
Exxon Corporation............. 81,100 5,915
Mobil Corporation............. 44,000 3,476
Royal Dutch Petroleum Company,
New York
Registry.................... 108,900 6,160
</TABLE>
See accompanying notes
37
<PAGE> 39
AMR INVESTMENT SERVICES GROWTH AND INCOME PORTFOLIO
SCHEDULE OF INVESTMENTS - CONTINUED
April 30, 1998 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Shares Value
---------- ----------
(dollars in thousands)
<S> <C> <C>
Texaco, Incorporated.......... 328,900 $ 20,227
----------
TOTAL OIL (INTERNATIONAL
INTEGRATED)............. 61,680
----------
TOTAL ENERGY.............. 243,375
----------
FINANCIALS - 24.05%
BANKS - 10.76%
Banc One Corporation.......... 213,910 12,581
BankAmerica Corporation....... 428,700 36,439
Bankers Trust Corporation New
York........................ 254,450 32,856
Chase Manhattan Corporation... 310,214 42,984
First Chicago NBD............. 462,065 42,914
First Midwest Bancorp,
Incorporated................ 6,300 327
First Security Corporation.... 247,500 6,064
First Union Corporation....... 34,000 2,053
Fleet Financial Group,
Incorporated................ 100,500 8,681
J.P. Morgan & Company,
Incorporated................ 139,425 18,300
National City Corporation..... 34,400 2,382
NationsBank Corporation....... 80,000 6,060
PNC Bank Corporation.......... 207,700 12,553
----------
TOTAL BANKS............... 224,194
----------
CONSUMER FINANCE - 1.21%
Associates First Capital
Corporation................. 164,803 12,319
Beneficial Corporation........ 52,000 6,779
Household International,
Incorporated................ 46,000 6,046
----------
TOTAL CONSUMER FINANCE.... 25,144
----------
FINANCIAL (DIVERSIFIED) - 5.10%
Ace Limited................... 351,150 13,300
American Express Company...... 324,400 33,089
American General
Corporation................. 88,600 5,903
Executive Risk,
Incorporated................ 2,500 167
Federal Home Loan Mortgage
Corporation................. 302,450 14,007
Federal National Mortgage
Association................. 300,975 18,021
FPIC Insurance Group,
Incorporated (non-income
producing).................. 7,020 242
Fund American Enterprises,
Incorporated................ 42,750 5,969
Morgan Stanley Dean Witter
Discover & Company.......... 128,400 10,128
Mutual Risk Management,
Limited..................... 7,900 268
</TABLE>
<TABLE>
<CAPTION>
Shares Value
---------- ----------
(dollars in thousands)
<S> <C> <C>
The PMI Group, Incorporated... 62,000 $ 5,038
----------
TOTAL FINANCIAL
(DIVERSIFIED)........... 106,132
----------
INSURANCE (LIFE/HEALTH) - 0.56%
Aetna Incorporated............ 60,000 4,849
Esg Re Limited................ 21,400 551
TransAmerica Corporation...... 55,000 6,352
----------
TOTAL INSURANCE
(LIFE/HEALTH)........... 11,752
----------
INSURANCE (MULTI-LINE) - 0.97%
Hartford Financial Services
Group, Incorporated......... 51,200 5,670
Lincoln National
Corporation................. 70,000 6,217
Travelers Group............... 137,086 8,388
----------
TOTAL INSURANCE
(MULTI-LINE)............ 20,275
----------
INSURANCE BROKERS - 0.83%
Aon Corporation............... 255,100 16,454
Healthplan Services
Corporation................. 37,800 921
----------
TOTAL INSURANCE BROKERS... 17,375
----------
INSURANCE - PROPERTY - CASUALTY - 3.56%
Allstate Corporation.......... 124,414 11,975
American Financial Group
Incorporated Ohio........... 304,640 13,271
Chubb Corporation............. 127,600 10,072
IPC Holdings, Limited......... 15,410 499
Mid Ocean, Limited............ 121,000 9,120
Old Republic International
Corporation................. 319,150 14,442
Safeco Corporation............ 69,000 3,446
Stirling Cooke Brown
Holdings.................... 13,700 387
TIG Holdings Incorporated..... 450,500 10,840
----------
TOTAL INSURANCE
PROPERTY - CASUALTY..... 74,052
----------
INVESTMENT BANKING/BROKERAGE - 0.43%
Paine Webber Group,
Incorporated................ 198,200 8,882
----------
TOTAL INVESTMENT BANKING/
BROKERAGE............... 8,882
----------
SAVINGS & LOAN COMPANIES - 0.63%
H.F. Ahmanson & Company....... 95,000 7,244
Coastal Bancorp,
Incorporated................ 1,681 61
Washington Federal,
Incorporated................ 1,778 50
Washington Mutual,
Incorporated................ 82,000 5,745
----------
TOTAL SAVINGS & LOAN
COMPANIES............... 13,100
----------
TOTAL FINANCIALS.......... 500,906
----------
</TABLE>
See accompanying notes
38
<PAGE> 40
AMR INVESTMENT SERVICES GROWTH AND INCOME PORTFOLIO
SCHEDULE OF INVESTMENTS - CONTINUED
April 30, 1998 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Shares Value
---------- ----------
(dollars in thousands)
<S> <C> <C>
HEALTH CARE - 1.75%
American Home Products
Corporation................. 52,000 $ 4,842
Baxter International,
Incorporated................ 70,000 3,881
Bristol-Myers Squibb
Company..................... 85,000 8,999
Foundation Health Systems..... 290,100 8,395
Pharmacia & Upjohn,
Incorporated................ 245,000 10,305
----------
TOTAL HEALTH CARE......... 36,422
----------
TECHNOLOGY - 5.31%
COMPUTERS - 1.66%
Data General Corporation (non-
income producing)........... 265,900 4,055
International Business
Machines Corporation........ 201,200 23,314
Radisys, Corporation.......... 16,300 444
Seagate Technology............ 252,100 6,728
----------
TOTAL COMPUTERS........... 34,541
----------
ELECTRONICS - 1.47%
MEMC Electronic Materials,
Incorporated................ 213,200 2,998
National Semiconductor
Corporation................. 17,000 374
Raytheon Company.............. 391,975 21,632
VLSI Technology, Incorporated
(non-income producing)...... 267,500 5,517
----------
TOTAL ELECTRONICS......... 30,521
----------
SERVICES - 2.18%
Eastman Kodak Company......... 66,000 4,764
Unova Incorporated............ 12,700 295
Vanstar Corporation........... 44,200 588
Xerox Corporation............. 350,800 39,816
----------
TOTAL SERVICES............ 45,463
----------
TOTAL TECHNOLOGY.......... 110,525
----------
TRANSPORTATION - 2.66%
AIR FREIGHT - 0.02%
Airnet Systems,
Incorporated................ 13,600 367
----------
TOTAL AIR FREIGHT......... 367
----------
RAILROADS - 2.60%
Burlington Northern,
Incorporated................ 56,200 5,564
CSX Corporation............... 434,300 22,801
GATX Corporation.............. 73,900 6,124
Norfolk Southern
Corporation................. 591,000 19,762
----------
TOTAL RAILROADS........... 54,251
----------
SHIPPING - 0.02%
Teekay Shipping Corporation... 13,649 420
----------
TOTAL SHIPPING............ 420
----------
</TABLE>
<TABLE>
<CAPTION>
Shares Value
---------- ----------
(dollars in thousands)
<S> <C> <C>
WATER UTILITIES - 0.02%
Trico Marine Services
Incorporated................ 20,400 $ 462
----------
TOTAL WATER UTILITIES..... 462
----------
TOTAL TRANSPORTATION...... 55,500
----------
UTILITIES - 9.85%
ELECTRIC COMPANIES - 7.64%
Central and Southwest
Corporation................. 325,000 8,470
CMS Energy Corporation........ 473,700 20,695
Dominion Resources,
Incorporated................ 207,500 8,209
DTE Energy Company............ 331,500 12,991
Edison International.......... 202,500 6,037
Entergy Corporation........... 591,100 14,704
Houston Industries,
Incorporated................ 750,200 21,803
Illinova Corporation.......... 215,000 6,571
Northeast Utilities........... 863,600 12,198
PP&L Resources,
Incorporated................ 458,400 10,572
Peco Energy Company........... 243,900 5,808
Potomac Electric Power
Company..................... 163,800 4,013
Public Service Enterprise
Group, Incorporated......... 168,900 5,669
Scana Corporation............. 150,000 4,481
Texas Utilities Company....... 243,400 9,736
Unicom Corporation............ 206,700 7,183
----------
TOTAL ELECTRIC
COMPANIES............... 159,140
----------
NATURAL GAS - DISTRIBUTION - PIPE LINE -- 2.21%
Coastal Corporation........... 117,575 8,399
El Paso Natural Gas Company... 119,518 4,415
Equitable Resources,
Incorporated................ 141,900 4,612
Peoples Energy Corporation.... 68,000 2,465
Williams Companies,
Incorporated................ 824,197 26,065
----------
TOTAL NATURAL GAS -
DISTRIBUTION - PIPE
LINE.................... 45,956
----------
TOTAL UTILITIES........... 205,096
----------
TOTAL COMMON STOCKS....... 2,046,150
----------
</TABLE>
See accompanying notes
39
<PAGE> 41
AMR INVESTMENT SERVICES GROWTH AND INCOME PORTFOLIO
SCHEDULE OF INVESTMENTS - CONTINUED
April 30, 1998 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<S> <C> <C>
Par
Amount Value
-------- ----------
(dollars in thousands)
SHORT-TERM INVESTMENTS (NOTE A) - 7.64%
AMR Investments Strategic Cash
Business Trust............... $131,834 $ 131,834
Bank Brussells Lambert Euro TD,
5.531%, Due 5/1/1998......... 27,262 27,262
----------
TOTAL SHORT-TERM
INVESTMENTS.............. 159,096
----------
TOTAL INVESTMENTS - 105.89%
(COST $1,609,517)............ 2,205,597
----------
OTHER ASSETS, NET OF
LIABILITIES - (5.89%)........ (122,759)
----------
TOTAL NET ASSETS - 100%........ $2,082,838
==========
</TABLE>
- ---------------
Based on the cost of investments of $1,611,972 for federal income tax purposes
at April 30, 1998, the aggregate gross unrealized appreciation was $613,896, the
aggregate gross unrealized depreciation was $20,272, and the net unrealized
appreciation of investments was $593,624.
(A) Rates associated with short-term investments represent yield to maturity.
ABBREVIATIONS:
ADR - American Depositary Receipt
NV - Company
PLC - Public Limited Corporation
SA - Company
TD - Time Deposit
See accompanying notes
40
<PAGE> 42
AMR INVESTMENT SERVICES INTERMEDIATE BOND PORTFOLIO
SCHEDULE OF INVESTMENTS
April 30, 1998 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Par
Amount Value
--------- ---------
(dollars in thousands)
<S> <C> <C>
U.S. TREASURY OBLIGATIONS - 31.45%
U.S. TREASURY BONDS - 14.78%
10.375%, Due 11/15/2012..................................... $ 4,000 $ 5,296
8.125%, Due 8/15/2019....................................... 10,465 13,058
6.375%, Due 8/15/2027....................................... 11,000 11,584
6.125%, Due 11/15/2027...................................... 3,290 3,369
--------
TOTAL U.S. TREASURY BONDS............................... 33,307
--------
U.S. TREASURY NOTES - 16.67%
6.50%, Due 4/30/1999........................................ 700 706
7.875%, Due 8/15/2001....................................... 11,980 12,762
7.50%, Due 2/15/2005........................................ 1,300 14,268
7.00%, Due 7/15/2006........................................ 6,730 7,266
6.125%, Due 8/15/2007....................................... 2,500 2,569
--------
TOTAL U.S. TREASURY NOTES............................... 37,571
--------
TOTAL U.S. TREASURY OBLIGATIONS......................... 70,878
--------
U.S. AGENCY MORTGAGE-BACKED OBLIGATIONS - 17.50%
FEDERAL HOME LOAN MORTGAGE ASSOCIATION - 1.50%
Gold Pool #E00506, 7.00%, Due 9/1/2012...................... 1,300 1,325
Gold Pool #E69244, 6.00%, Due 3/1/2013...................... 1,390 1,372
Gold Pool #E00540, 6.00%, Due 3/1/2013...................... 698 689
--------
TOTAL FEDERAL HOME LOAN MORTGAGE ASSOCIATION............ 3,386
--------
FEDERAL NATIONAL MORTGAGE ASSOCIATION - 4.59%
Pool #555555, 6.50%, Due 4/18/2027.......................... 9,079 8,942
Pool #408204, 6.50%, Due 1/1/2028........................... 694 687
Pool #416831, 6.50%, Due 3/1/2028........................... 724 717
--------
TOTAL FEDERAL NATIONAL MORTGAGE ASSOCIATION............. 10,346
--------
GOVERNMENT NATIONAL MORTGAGE ASSOCIATION - 11.41%
Pool #780285, 9.50%, Due 12/15/2017......................... 17,129 18,763
Pool #448701, 7.50%, Due 9/15/2027.......................... 5,512 5,661
Pool #780570, 7.00%, Due 5/15/2027.......................... 1,261 1,276
--------
TOTAL GOVERNMENT NATIONAL MORTGAGE ASSOCIATION.......... 25,700
--------
TOTAL U.S. AGENCY MORTGAGE-BACKED OBLIGATIONS........... 39,432
--------
ASSET-BACKED SECURITIES - 2.27%
Citibank Credit Card Master Trust I, 6.989%, Due
2/10/2004................................................. 5,000 5,125
--------
TOTAL ASSET-BACKED SECURITIES........................... 5,125
--------
COMMERCIAL MORTGAGE-BACKED OBLIGATIONS - 2.28%
GMAC Commercial Mortgage Securities, Incorporated 6.869%,
Due 8/15/2007............................................. 5,000 5,141
--------
TOTAL MORTGAGE-BACKED OBLIGATIONS....................... 5,141
--------
CORPORATE OBLIGATIONS - 43.21%
FINANCIAL - 21.30%
American Express Credit Corporation, 6.125%, Due
6/15/2000................................................. 2,000 2,007
Associates Corporation of North America, 7.875%, Due
9/30/2001................................................. 3,550 3,739
BankAmerica Corporation, 7.20%, Due 4/15/2006............... 1,280 1,345
Bear Stearns Company, Variable Rate, 5.59%, Due 7/10/2000... 5,000 4,987
Chrysler Finance Corporation, Variable Rate, 5.57%, Due
7/17/2000................................................. 5,000 4,982
</TABLE>
See accompanying notes
41
<PAGE> 43
AMR INVESTMENT SERVICES INTERMEDIATE BOND PORTFOLIO
SCHEDULE OF INVESTMENTS -- CONTINUED
April 30, 1998 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Par
Amount Value
--------- ---------
(dollars in thousands)
<S> <C> <C>
Ford Motor Credit Corporation, Variable Rate,
5.42%, Due 8/7/2000....................................... $ 5,000 $ 4,987
6.125%, Due 4/28/2003..................................... 2,490 2,478
General Motors Acceptance Corporation, 6.375% Due
12/1/2001................................................. 2,000 2,016
Merrill Lynch and Company, Variable Rate, 5.61%, Due
6/27/2000................................................. 5,000 4,983
NationsBank Corporation, 6.375%, Due 2/15/2008.............. 3,350 3,331
Sears Roebuck Acceptance Corporation,
6.93% Due 10/03/2002...................................... 2,000 2,043
6.72%, Due 11/5/2003...................................... 2,200 2,232
Swiss Bank Corporation, 7.375%, Due 7/15/2015............... 3,000 3,171
Travelers Property Casualty Corporation, 6.75%, Due
4/15/2001................................................. 4,000 4,072
Wells Fargo and Company, 6.875%, Due 5/10/2001.............. 1,600 1,629
--------
TOTAL FINANCIAL......................................... 48,002
--------
INDUSTRIAL - 17.07%
A.H. Belo, Corporation, 7.25%, Due 9/15/2027................ 1,500 1,570
Atlantic Richfield Corporation, 9.00%, Due 4/1/2021......... 2,000 2,537
Auburn Hills Trust, 12.00%, Due 5/1/2020.................... 1,825 2,929
Coca Cola Company, Incorporated, 6.00%, Due 3/15/2001....... 4,000 3,986
Dresser Industries, 6.25%, Due 6/1/2000..................... 2,000 2,013
Fort James Corporation, 6.625%, Due 9/15/2004............... 2,000 2,015
General Motors, Incorporated 7.70%, Due 4/15/2016........... 3,000 3,291
Ingersoll Rand, Company, 6.34%, Due, 12/3/2001.............. 2,000 2,009
J. C. Penney and Company, 7.95%, Due 4/1/2017............... 3,000 3,306
K.N. Energy, Incorporated, 6.65%, Due 3/1/2005.............. 930 933
Loews Corporation, 6.75%, Due 12/15/2006.................... 2,000 2,026
Occidental Petroleum Corporation
6.40%, Due 4/1/2003....................................... 1,310 1,305
6.50%, Due 4/1/2005....................................... 655 653
Phillip Morris Companies, Incorporated, 7.20%, Due
2/1/2007.................................................. 2,000 2,063
Sears Roebuck & Company, MTN, 9.05%, Due 2/6/2012........... 4,000 4,943
USA Waste Services, Incorporated, 6.505%, Due 12/15/2002.... 1,500 1,501
WMX Technologies, Incorporated, 6.65%, Due 5/15/2005........ 1,375 1,387
--------
TOTAL INDUSTRIAL........................................ 38,467
--------
SOVEREIGN - 1.00%
Province of Quebec, 7.00%, Due 1/30/2007.................... 2,170 2,265
--------
TOTAL SOVEREIGN......................................... 2,265
--------
TRANSPORTATION - 2.02%
Norfolk Southern Corporation,
6.95%, Due 5/1/2002....................................... 3,000 3,081
7.80%, Due 5/15/2027...................................... 1,310 1,468
--------
TOTAL TRANSPORTATION.................................... 4,549
--------
UTILITIES - 1.82%
Texas Utilities Electric Company, 9.50%, Due 8/1/1999....... 2,000 2,072
Western Resources, Incorporated, 6.875%, Due 8/1/2004....... 2,000 2,039
--------
TOTAL UTILITIES......................................... 4,111
--------
TOTAL CORPORATE OBLIGATIONS............................. 97,394
--------
</TABLE>
See accompanying notes
42
<PAGE> 44
AMR INVESTMENT SERVICES INTERMEDIATE BOND PORTFOLIO
SCHEDULE OF INVESTMENTS -- CONTINUED
April 30, 1998 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Par
Amount Value
--------- ---------
(dollars in thousands)
<S> <C> <C>
SHORT-TERM INVESTMENTS (NOTE A) - 18.59%
AMR Investments Strategic Cash Business Trust............... $ 36,382 $ 36,382
First Boston Treasury Tri-Party Repurchase Agreement, 5.45%,
Due 5/1/1998 (Collateral held at The Chase Manhattan Bank,
N.A. by a U.S. Treasury Note, 7.50%, Due
5/15/2002 -- Market Value: $5,468)........................ 5,523 5,523
--------
TOTAL SHORT-TERM INVESTMENTS............................ 41,905
--------
TOTAL INVESTMENTS - 115.30% (COST $258,980)............. 259,875
--------
LIABILITIES, NET OF OTHER ASSETS (15.30%).............. (34,485)
--------
TOTAL NET ASSETS-100%................................... $225,390
========
</TABLE>
- ---------------
Based on the cost of investments of $259,000 for federal income tax purposes at
April 30, 1998, the aggregate gross unrealized appreciation was $1,356, the
unrealized depreciation was $482, and the net unrealized appreciation of
investments was $874.
(A) Rates associated with short-term investments represent yield to maturity.
ABBREVIATIONS:
MTN -- Medium-Term Note
43
<PAGE> 45
AMR INVESTMENT SERVICES INTERNATIONAL EQUITY PORTFOLIO
SCHEDULE OF INVESTMENTS
April 30, 1998 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Shares Value
--------- -----------
(dollars in thousands)
<S> <C> <C>
AUSTRALIA COMMON STOCKS - 4.05%
Australia & New Zealand
Banking Group.............. 1,147,152 $ 8,005
Brambles Industries,
Limited.................... 166,700 3,436
CSR, Limited................. 199,200 636
Foster's Brewing Group,
Limited.................... 1,900,300 4,138
GIO Australia Holdings,
Limited.................... 1,191,949 3,419
Goodman Fielder, Limited..... 1,150,000 1,784
Mayne Nickless, Limited...... 625,000 3,375
News Corporation, Limited.... 210,000 1,408
News Corporation Preferred
Rights..................... 345,000 1,943
Pioneer International,
Limited.................... 2,054,675 5,867
QBE Insurance Group,
Limited.................... 1,149,636 5,277
RGC, Limited................. 550,000 753
WMC, Limited................. 785,000 2,794
-----------
TOTAL AUSTRALIA COMMON
STOCKS................. 42,835
-----------
AUSTRIA -- 1.11%
PREFERRED STOCKS -- 0.32%
Bank Austria AG.............. 44,000 3,401
-----------
TOTAL AUSTRIA PREFERRED
STOCKS................. 3,401
-----------
COMMON STOCKS -- 0.79%
Boehler-Uddeholm AG.......... 60,185 4,437
Evn Energie-Versorgung
Niederroesterreich AG...... 7,960 1,176
Mayr-Melnhof Karton AG....... 16,000 1,110
VA Technologie AG............ 11,000 1,581
-----------
TOTAL AUSTRIA COMMON
STOCKS................. 8,304
-----------
TOTAL AUSTRIA............ 11,705
-----------
BELGIUM COMMON STOCKS - 0.53%
Electrabel SA................ 8,800 2,336
GIB Holdings, Limited, NPV... 29,000 1,425
Solvay Et Cie, NPV........... 25,000 1,880
-----------
TOTAL BELGIUM COMMON
STOCKS................. 5,641
-----------
CANADA COMMON STOCKS - 4.11%
Alcan Aluminum, Limited...... 97,000 3,147
Anderson Exploration,
Limited.................... 170,000 2,068
Canadian Imperial Bank of
Commerce................... 157,200 5,588
IMASCO, Limited.............. 119,000 4,480
</TABLE>
<TABLE>
<CAPTION>
Shares Value
--------- -----------
(dollars in thousands)
<S> <C> <C>
Methanex Corporation......... 275,000 $ 2,394
Newbridge Network............ 100,000 2,929
Noranda, Incorporated........ 254,875 5,257
Oshawa Group, Limited........ 66,000 1,061
Potash Corporation of
Saskatchewan............... 40,704 3,625
Ranger Oil, Limited.......... 116,200 808
Renaissance Energy........... 334,200 6,437
Telus Corporation............ 210,000 5,660
-----------
TOTAL CANADA COMMON
STOCKS................. 43,454
-----------
DENMARK COMMON STOCKS - 0.69%
BG Bank...................... 20,750 1,213
Den Danske Bank.............. 12,000 1,455
Teledanmark AS, "B".......... 16,700 1,403
Unidanmark AS, "A"........... 38,200 3,210
-----------
TOTAL DENMARK COMMON
STOCKS................. 7,281
-----------
FINLAND COMMON STOCKS - 2.85%
Enso-Gutzeit OY, "R"......... 212,000 2,257
Huhtamaki Group I Free....... 27,500 1,590
Merita Bank, Limited......... 785,000 5,259
Metra OY,"B"................. 194,295 4,886
Metsa-Serla OY, "B".......... 100,000 1,037
Nokia OY, "A"................ 87,000 5,845
Rauma OY..................... 83,277 1,559
UPM-Kymmene OY............... 254,280 7,631
-----------
TOTAL FINLAND COMMON
STOCKS................. 30,064
-----------
FRANCE COMMON STOCKS - 9.56%
Alcatel Alsthom CG........... 47,200 8,745
Axa SA....................... 35,542 4,170
Banque Nationale de Paris.... 45,000 3,791
Bongrain SA.................. 2,274 1,171
Elf Aquitaine SA............. 117,700 15,432
France Telecom SA............ 105,300 5,727
Groupe Danone................ 40,300 9,510
La Farge..................... 5,415 497
La Farge-Coppee SA........... 64,983 6,134
Pechiney SA.................. 51,800 2,316
Pernod-Ricard................ 70,689 4,875
Rhone-Poulenc, "A"........... 126,100 6,163
Sa Des Galeries Lafayette.... 162 142
Saint Gobain................. 21,848 3,638
Schneider SA................. 43,000 3,215
Scor SA...................... 31,500 1,941
Seita........................ 115,202 5,169
Societe Generale............. 37,984 7,903
Total Petroleum Company,
"B".................... 57,100 6,784
Usinor Sacilor............... 248,752 3,720
-----------
TOTAL FRANCE COMMON
STOCKS................. 101,043
-----------
</TABLE>
44
<PAGE> 46
AMR INVESTMENT SERVICES INTERNATIONAL EQUITY PORTFOLIO
SCHEDULE OF INVESTMENTS -- CONTINUED
April 30, 1998 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Shares Value
--------- -----------
(dollars in thousands)
<S> <C> <C>
GERMANY - 4.45%
PREFERRED STOCKS - 0.97%
Dyckerhoff AG................ 14,274 $ 4,916
Herlitz AG................... 23,947 1,455
Volkswagen AG................ 6,570 3,899
-----------
TOTAL GERMANY PREFERRED
STOCKS................. 10,270
-----------
COMMON STOCKS - 3.48%
BASF AG...................... 120,300 5,356
BAYER AG..................... 149,125 6,632
BBS Kraftfahrzeugtechnik..... 1,526 269
Commerzbank AG............... 134,500 5,187
Deutsche Bank AG............. 36,000 2,770
Hoechst AG................... 41,700 1,682
Karstadt AG.................. 4,000 1,806
Muenchener Rueckversicherungs
AG......................... 7,160 2,434
Varta AG
(non-income producing)..... 1,440 286
Veba AG...................... 93,500 6,179
Viag AG...................... 7,340 3,718
Volkswagen AG................ 505 402
-----------
TOTAL GERMANY COMMON
STOCKS................. 36,721
-----------
TOTAL GERMANY............ 46,991
-----------
HONG KONG COMMON STOCKS - 3.57%
Asia Satellite
Telecommunications
Holdings, Limited.......... 275,000 506
Cheung Kong Holdings,
Limited.................... 355,000 2,360
China Light and Power
Company.................... 818,000 3,928
Dickson Concepts
(International), Limited... 643,000 888
Hang Lung Development
Company, Limited........... 3,155,000 4,114
Hong Kong Aircraft
Engineering Company,
Limited.................... 7,200 13
Hong Kong Electric
Holdings................... 793,400 2,438
Hong Kong Telecommunications,
Limited.................... 1,024,400 1,918
HSBC Holdings, Limited....... 114,500 3,267
Hutchinson Whampoa,
Limited.................... 300,000 1,855
Hysan Development............ 496,000 704
Hysan Development Company,
Limited.................... 49,600 1
National Mutual of Asia,
Limited.................... 1,700,000 1,361
New World Development
Company, Limited........... 919,000 2,616
Peregrine Investments
Holdings, Limited.......... 605,000 336
Peregrine Investments
Holdings, Limited
Warrants................... 55,000 1
South China Morning Post..... 7,886,000 4,734
Swire Pacific, Limited,
"A"........................ 632,500 539
</TABLE>
<TABLE>
<CAPTION>
Shares Value
--------- -----------
(dollars in thousands)
<S> <C> <C>
Swire Pacific, Limited "B"... 1,234,500 $ 6,168
-----------
TOTAL HONG KONG COMMON
STOCKS................. 37,747
-----------
IRELAND COMMON STOCKS - 0.73%
Jefferson Smurfit............ 2,063,082 7,678
-----------
TOTAL IRELAND COMMON
STOCKS................. 7,678
-----------
ITALY - 3.16%
PREFERRED STOCK - 0.20%
Concessioni E Costruzioni
Autostrade................. 525,000 2,053
-----------
TOTAL ITALY PREFERRED
STOCK.................. 2,053
-----------
COMMON STOCKS - 2.96%
Burgo (Cartiere) SPA......... 225,020 1,803
Danieli Group................ 94,960 25
Danieli Group Risp........... 94,960 504
Eni SPA...................... 941,380 6,319
Fiat SPA..................... 775,000 3,073
Instituto Nazionale Delle
Assicurazioni.............. 1,000,000 2,988
Mediaset..................... 541,100 3,542
STET Risp Non Convertible.... 550,000 4,113
STET Telecom Italia Risp..... 1,696,500 8,942
-----------
TOTAL ITALY COMMON
STOCKS................. 31,309
-----------
TOTAL ITALY.............. 33,362
-----------
JAPAN COMMON STOCKS - 9.87%
Aisin Seiki Company,
Limited.................... 300,000 2,881
Aoyama Trading Company....... 68,100 1,572
Best Denki Company........... 26,000 148
Canon, Incorporated.......... 54,000 1,279
Central Japan Railway........ 500 1,718
Chudenko Corporation......... 33,000 764
Daibiru Corporation.......... 240,000 1,615
Daicel Chemical.............. 859,000 1,502
Eisai Company................ 101,000 1,452
Fuji Photo Film.............. 203,000 7,236
Fujisawa Pharmaceutical
Company.................... 77,000 751
Hitachi Zosen Corporation.... 212,000 324
Hitachi, Limited............. 324,000 2,327
Japan Tobacco................ 950 6,809
Kanamoto Company............. 51,000 239
KAO Corporation.............. 365,000 5,373
Kioto Manufacturing Company,
Limited.................... 432,000 2,223
Kyocera Corporation.......... 108,000 5,673
Makita Corporation........... 33,000 360
Matsushita Electric
Industrial Company......... 304,000 4,878
Matsuzakaya Company.......... 266,000 1,158
MOS Food Services............ 97,000 1,237
NKK Corporation.............. 1,200,000 1,044
</TABLE>
45
<PAGE> 47
AMR INVESTMENT SERVICES INTERNATIONAL EQUITY PORTFOLIO
SCHEDULE OF INVESTMENTS -- CONTINUED
April 30, 1998 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Shares Value
--------- -----------
(dollars in thousands)
<S> <C> <C>
NEC Corporation.............. 79,000 $ 891
Namco........................ 150,000 3,048
Nichicon Corporation......... 293,000 3,193
Nichido Fire & Marine
Insurance.................. 393,000 2,109
Nintendo Company, Limited.... 64,400 5,917
Nippon Telephone & Telegraph
Company.................... 370 3,248
Okumura Corporation.......... 420,000 1,558
Ono Pharmaceutical........... 64,000 1,395
Promise Company, Limited..... 106,800 5,432
Ryosan Company............... 9,000 129
Sekisui Chemical Company,
Limited.................... 311,000 1,711
Shionogi & Company........... 173,000 940
Showa Sangyo Company......... 593,000 1,158
Sony Corporation............. 80,800 6,733
Sumitomo Marine & Fire
Insurance.................. 442,000 2,639
Sumitomo Rubber Industries... 77,000 455
Suzuki Motor Company,
Limited.................... 193,000 1,662
Toyo Seikan Kaisha........... 198,000 2,555
Yamanouchi Pharmaceutical.... 127,000 3,009
Yamato Kogyo Company,
Limited.................... 120,000 896
Yodogawa Steel Works......... 499,000 2,115
Yoshitomi Pharmaceutical..... 185,000 976
-----------
TOTAL JAPAN COMMON
STOCKS................. 104,332
-----------
MALAYSIA COMMON STOCKS - 0.44%
Genting BHD.................. 508,700 1,687
Golden Hope Plantations
BHD........................ 1,668,000 2,060
Hicom Holdings BHD........... 529,300 209
Malaysian International
Shipping Corporation BHD... 402,666 700
-----------
TOTAL MALAYSIA COMMON
STOCKS................. 4,656
-----------
MEXICO COMMON STOCKS - 0.60%
Alfa, SA..................... 121,000 660
Consorcio Grupo Dina Sa De C
V.......................... 367,625 1,907
Grupo Mexico SA, Series
"B"........................ 435,000 1,409
Grupo Mexico SA, Series
"L"........................ 63,000 200
Industrias Penoles........... 215,000 886
Vitro Sa..................... 335,000 1,243
-----------
TOTAL MEXICO COMMON
STOCKS................. 6,305
-----------
NETHERLANDS COMMON STOCKS - 6.47%
ABN AMRO Holdings NV......... 447,715 10,902
Akzo Nobel NV................ 66,750 13,578
Fortis Amev NV............... 51,654 3,022
Hollandsche Beton Groep NV... 158,040 3,293
Ing Groep NV................. 235,577 15,309
Kon PTT Nederland............ 129,410 6,687
</TABLE>
<TABLE>
<CAPTION>
Shares Value
--------- -----------
(dollars in thousands)
<S> <C> <C>
Koninklijke Bijenkorf Beheer
NV......................... 17,400 $ 1,240
Koninklijke KNP BT........... 58,010 1,593
Phillips Electronics......... 112,900 9,946
Unilever NV.................. 40,000 2,847
-----------
TOTAL NETHERLANDS COMMON
STOCKS................. 68,417
-----------
Par
Amount
---------
NEW ZEALAND - 0.70%
FOREIGN BONDS - 0.01%
Brierley Investments, Limited
Subordinated Convertible,
9.00%, Due 6/30/1998....... $ 63 35
-----------
TOTAL NEW ZEALAND FOREIGN
BONDS.................. 35
-----------
Shares
---------
COMMON STOCKS - 0.69%
Brierley Investments,
Limited.................... 1,691,262 977
Carter Holt Harvey,
Limited.................... 605,889 805
Fisher & Paykel, Limited..... 660,000 1,962
Fletcher Challenge
Building................... 775,250 1,568
Fletcher Challenge Forest.... 8,284 5
Fletcher Challenge Paper..... 365,000 537
Lion Nathan, Limited......... 534,700 1,420
-----------
TOTAL NEW ZEALAND COMMON
STOCKS................. 7,274
-----------
TOTAL NEW ZEALAND........ 7,309
-----------
NORWAY COMMON STOCKS - 1.79%
Den Norsk Bank, Series A..... 270,000 1,419
Kvaerner Industries AS....... 117,289 5,140
Norsk Hydro AS............... 60,000 2,993
Nycomed AS, Series B......... 190,771 6,190
Saga Petroleum............... 10,175 202
Saga Petroleum, Series B
Free....................... 100,000 1,783
Unitor AS.................... 80,000 1,234
-----------
TOTAL NORWAY COMMON
STOCKS................. 18,961
-----------
SINGAPORE COMMON STOCKS - 0.47%
Development Bank of
Singapore.................. 46,000 305
Development Bank of
Singapore, "A" Shares...... 16,500 109
Fraser & Neave, Limited...... 541,000 2,426
Hong Kong Land............... 708,847 1,000
Inchcape Berhad.............. 325,000 112
Inchcape Motors.............. 325,000 554
Singapore Finance, Limited... 387,000 293
Van Der Horst................ 440,000 186
-----------
TOTAL SINGAPORE COMMON
STOCKS................. 4,985
-----------
SPAIN COMMON STOCKS - 3.14%
Banco Popular Espanol........ 28,000 2,296
Banco Santander SA........... 112,730 5,954
</TABLE>
46
<PAGE> 48
AMR INVESTMENT SERVICES INTERNATIONAL EQUITY PORTFOLIO
SCHEDULE OF INVESTMENTS -- CONTINUED
April 30, 1998 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Shares Value
--------- -----------
(dollars in thousands)
<S> <C> <C>
Iberdrola SA................. 522,757 $ 8,403
Repsol SA (BR)............... 100,135 5,486
Telefonica................... 144,000 113
Telefonica de Espana......... 261,900 10,929
-----------
TOTAL SPAIN COMMON
STOCKS................. 33,181
-----------
SOUTH KOREA COMMON STOCKS - 0.10%
Korea Electric Power
Corporation................ 80,860 1,101
-----------
TOTAL SOUTH KOREA COMMON
STOCKS................. 1,101
-----------
SWEDEN COMMON STOCKS - 4.06%
Assidoman AB................. 56,000 1,505
Astra AB, "B" Free........... 55,200 1,098
Autoliv Incorporated......... 105,000 3,189
Electrolux AB, "B"........... 95,015 8,840
Esselte AB, Class "A"........ 2,000 45
Esselte AB, Class "B"........ 17,000 389
Foreningssparbk.............. 178,500 5,582
Granges AB................... 15,000 273
Nordbanken AS................ 358,100 2,638
Pharmacia & Upjohn,
Incorporated............... 91,300 3,982
Skandia Forsakrings AB....... 14,300 996
SKF AB, "B" Free............. 94,600 1,907
Stora Kopparsbergs Bergslags,
"A"........................ 122,100 2,091
Stora Kopparsbergs Bergslags,
"B"........................ 25,800 440
Svedala Industries, "A"
Free....................... 90,000 2,146
Svenska Cellulosa, "B"
Free....................... 149,400 4,305
Volvo AB..................... 120,000 3,504
-----------
TOTAL SWEDEN COMMON
STOCKS................. 42,930
-----------
SWITZERLAND COMMON STOCKS - 6.36%
ABB AG....................... 2,840 4,658
Cie Fin Richemont............ 3,940 5,648
Forbo Holding AG............. 3,280 1,684
Holderbank Financial
Glarus-B................... 3,600 3,811
Nestle SA.................... 9,541 18,510
Novartis AG.................. 2,879 4,760
Schindler Holding AG (BR).... 1,110 1,795
Schweitz Ruckversiche........ 3,676 8,112
SGS Holdings................. 240 409
Sig Schweitz Industries AG... 11,140 9,269
Sulzer AG.................... 7,017 5,029
Zurich Versicherungs......... 5,700 3,473
-----------
TOTAL SWITZERLAND COMMON
STOCKS................. 67,158
-----------
UNITED KINGDOM COMMON STOCKS - 22.86%
Aggreko, PLC................. 502,977 1,682
Albert Fisher Group, PLC..... 262,500 123
Allied Domecq, PLC........... 510,710 5,252
</TABLE>
<TABLE>
<CAPTION>
Shares Value
--------- -----------
(dollars in thousands)
<S> <C> <C>
Arcadia Group................ 41,875 $ 329
Arriva....................... 205,000 1,446
Associated British Foods
Group, PLC................. 78,500 736
Bank of Scotland............. 306,044 3,761
BAT Industries, PLC.......... 925,984 8,732
BG, PLC...................... 1,332,016 7,116
British Energy, PLC.......... 300,000 2,734
British Telecommunications... 732,400 7,954
BTR, PLC..................... 4,577,800 15,213
Bunzl, PLC................... 792,900 3,818
Burmah Castrol, PLC.......... 366,050 7,571
Coats Viyella, PLC........... 1,695,330 2,636
Commercial Union, PLC........ 474,200 8,872
Cookson Group, PLC........... 1,814,400 8,145
Cortaulds, PLC............... 362,000 2,657
Cortaulds Textiles, PLC...... 150,000 805
Danka Business Systems, PLC.. 604,100 3,005
Debenhams Retail............. 83,750 549
Diageo....................... 360,590 4,293
Elementis.................... 511,260 1,299
English China Claylord
Group...................... 418,610 1,725
Express Dairies.............. 250,000 679
General Electric............. 435,000 3,600
Great Universal Stores....... 239,500 3,648
Hanson, PLC.................. 1,054,385 6,219
Hillsdown Holdings, PLC...... 2,171,600 6,499
Hyder, PLC................... 289,000 4,648
Imperial Chemical
Industries, PLC............ 37,000 672
Imperial Tobacco Group....... 374,100 2,696
Inchcape, PLC................ 300,000 1,122
Lex Service.................. 350,000 3,540
Lonrho....................... 243,625 1,756
Lucasvarity, PLC............. 610,000 2,726
Medeva, PLC.................. 2,156,273 6,417
National Grid Group, PLC..... 255,000 1,646
National Power, PLC.......... 50,000 487
National Westminster Bank,
PLC........................ 543,219 10,872
Northern Foods, PLC.......... 500,000 1,852
Peninsular & Orient Steam
Company.................... 294,158 4,340
Pilkington, PLC.............. 363 1
PowerGen, PLC................ 310,400 4,193
Premier Farnell, PLC......... 287,200 1,723
Racal Electronics, PLC....... 390,404 2,170
Reckitt & Coleman, PLC....... 394,754 7,953
RMC Group.................... 212,500 3,731
Rolls Royce, PLC............. 243,273 1,135
Royal & Sun Alliance
Insurance Group............ 313,400 3,500
Safeway, PLC................. 459,677 2,740
Salvesen (Christian), PLC.... 502,977 1,051
Scapa Group.................. 525,000 1,663
Shell Transportation &
Trading, PLC............... 135,000 1,004
</TABLE>
47
<PAGE> 49
AMR INVESTMENT SERVICES INTERNATIONAL EQUITY PORTFOLIO
SCHEDULE OF INVESTMENTS -- CONTINUED
April 30, 1998 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Shares Value
--------- -----------
(dollars in thousands)
<S> <C> <C>
Somerfield................... 308,000 $ 1,742
Southern Electric, PLC....... 151,400 1,411
Storehouse................... 880,000 3,642
Tate & Lyle, PLC............. 764,000 6,132
Tesco, PLC................... 343,819 3,219
Thames Water Group, PLC...... 189,800 3,094
Tomkins...................... 1,205,668 7,096
Transport Development
Group...................... 28,260 135
Transport Development Group,
"B" shares................. 50,000 28
Unilever, PLC................ 522,900 5,569
Vickers...................... 695,000 2,742
WPP Group, PLC............... 1,369,800 8,692
Wolseley..................... 483,300 3,390
-----------
TOTAL UNITED KINGDOM
COMMON STOCKS.......... 241,628
-----------
UNITED STATES - 22.54%
FOREIGN SECURITIES DENOMINATED IN U.S. DOLLARS - 1.83%
Cho Hung Bank GDR............ 340,000 417
Dairy Farm International..... 908,000 1,162
G P Batteries International,
Limited.................... 137,000 379
Kookmin Bank GDR............. 84,797 561
Kookmin Bank GDR,
Series "S"................. 50,000 331
Jardine Matheson Holdings,
Limited.................... 871,000 3,676
Jardine Strategic............ 1,824,000 4,742
New Holland NV............... 80,000 1,960
Nova Corporation............. 225,000 2,559
Sk Telecom, Limited.......... 115,051 856
Stolt-Nielsen SA, "B"........ 38,000 722
Telmex ADR................... 35,000 1,982
-----------
TOTAL FOREIGN SECURITIES
DENOMINATED IN U.S.
DOLLARS................ 19,347
-----------
</TABLE>
<TABLE>
<CAPTION>
Par
Amount Value
--------- -----------
(dollars in thousands)
<S> <C> <C>
</TABLE>
<TABLE>
<CAPTION>
Par
Amount Value
--------- -----------
(dollars in thousands)
<S> <C> <C>
UNITED STATES GOVERNMENT AND AGENCY OBLIGATIONS (NOTE
A) - 4.19%
FEDERAL HOME LOAN MORTGAGE CORPORATION - 1.94%
Discount Note, 5.41%,
Due 6/12/1998.............. $ 4,435 $ 4,407
Discount Note, 5.41%,
Due 6/15/1998.............. 1,365 1,356
Discount Note, 5.39%,
Due 6/18/1998.............. 419 416
Discount Note, 5.40%,
Due 7/15/1998.............. 14,530 14,367
-----------
TOTAL FEDERAL HOME LOAN
MORTGAGE CORPORATION... 20,546
-----------
FEDERAL NATIONAL MORTGAGE ASSOCIATION - 0.16%
5.40%, Due 5/15/1998......... 384 383
5.41%, Due 6/12/1998......... 1,267 1,259
-----------
TOTAL FEDERAL NATIONAL
MORTGAGE ASSOCIATION... 1,642
-----------
U.S. TREASURY BILLS - 2.09%
Due 5/7/1998................. 13,275 13,264
Due 6/25/1998................ 5,482 5,440
Due 7/23/1998................ 77 76
Due 9/17/1998................ 3,333 3,268
-----------
TOTAL U.S. TREASURY
BILLS.................. 22,048
-----------
TOTAL UNITED STATES
GOVERNMENT AND
AGENCY OBLIGATIONS..... 44,236
-----------
SHORT-TERM INVESTMENTS (NOTE B) - 16.52%
AMR Investments Strategic
Cash Business Trust........ 174,553 174,553
-----------
TOTAL SHORT-TERM
INVESTMENTS............ 174,553
-----------
TOTAL UNITED STATES........ 238,136
-----------
TOTAL INVESTMENTS -
114.21% (COST $989,636).... 1,206,900
-----------
LIABILITIES, NET OF OTHER
ASSETS - (14.21%).......... (150,121)
-----------
TOTAL NET ASSETS - 100%...... $ 1,056,779
===========
</TABLE>
48
<PAGE> 50
AMR INVESTMENT SERVICES INTERNATIONAL EQUITY PORTFOLIO
SCHEDULE OF INVESTMENTS -- CONTINUED
April 30, 1998 (Unaudited)
- --------------------------------------------------------------------------------
Based on the cost of investments of $989,946 for federal income tax purposes at
April 30, 1998, the aggregate gross unrealized appreciation was $257,641, the
aggregate gross unrealized depreciation was $40,688, and the net unrealized
appreciation of investments was $216,953.
(A) Rates associated with United States Government Bonds represent yield to
maturity from time of purchase.
(B) Rates associated with short-term investments represent yield to maturity or
yield to next reset date.
ABBREVIATIONS:
AB - Company (Sweden)
ADR - American Depository Receipt (United States)
AG - Company (Austria, Germany, Switzerland)
AS - Company (Denmark, Norway, Sweden)
BHD - Berhard (Malaysia)
BR - Bearer (Spain, Switzerland)
CG - Company General (France)
GDR - Global Depository Receipt (United States)
NPV - No Par Value (Belgium)
NV - Company (Netherlands, United States)
OY - Company (Finland)
PLC - Public Limited Corporation (United Kingdom)
SA - Company (Belgium, France, Mexico, Spain, Switzerland, United States)
SPA - Company (Italy)
INDUSTRY DIVERSIFICATION
April 30, 1998
(Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Percent of
Net Assets
----------
<S> <C>
Capital Goods............................................... 7.14%
Consumer Durables........................................... 4.11%
Consumer Non-Durables....................................... 20.20%
Energy...................................................... 10.38%
Finance..................................................... 19.91%
Materials and Services...................................... 22.94%
Technology.................................................. 4.71%
Transportation.............................................. 1.49%
Utilities................................................... 2.62%
Fixed-Income................................................ 4.19%
Short-Term Investments...................................... 16.52%
Other Assets (Liabilities).................................. (14.21%)
------
NET ASSETS........................................ 100.00%
======
</TABLE>
49
<PAGE> 51
AMR INVESTMENT SERVICES SHORT-TERM BOND PORTFOLIO
SCHEDULE OF INVESTMENTS
April 30, 1998 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Par
Amount Value
---------- --------
(dollars in thousands)
<S> <C> <C>
U.S. TREASURY NOTES - 6.27%
7.50%, Due 2/15/2005........................................ $ 1,000 $ 1,098
6.125%, Due 8/15/2007....................................... 5,000 5,138
--------
TOTAL U.S. TREASURY NOTES............................... 6,236
--------
U.S. GOVERNMENT & AGENCY
OBLIGATIONS - 24.38%
Federal Home Loan Mortgage Corporation, M H-1 A REMIC,
10.15%, Due 4/15/2006..................................... 73 74
Federal National Mortgage Association, 9.85%, Due
11/1/2018................................................. 12,870 14,567
Government National Mortgage Association, Pool #780173,
9.50%, Due 12/15/2019..................................... 8,791 9,595
--------
TOTAL U.S. GOVERNMENT & AGENCY OBLIGATIONS.............. 24,236
--------
CORPORATE OBLIGATIONS - 49.48%
FINANCIAL - 21.06%
Bear Stearns Company, Variable Rate, 5.59%, Due 7/10/2000... 5,000 4,987
Chrysler Finance Corporation, Variable Rate, 5.57%, Due
7/17/2000................................................. 5,000 4,982
Ford Motor Credit Corporation, Variable Rate, 5.42%, Due
8/7/2000.................................................. 5,000 4,987
Merrill Lynch and Company, Variable Rate, 5.61%, Due
6/27/2000................................................. 6,000 5,979
--------
TOTAL FINANCIAL......................................... 20,935
--------
INDUSTRIAL - 17.87%
Fort James Corporation, 8.375%, Due 11/15/2001.............. 3,000 3,187
General Motors Corporation, 9.125%, Due 7/15/2001........... 4,000 4,352
Phillip Morris Companies, Incorporated 7.25%, Due
1/15/2003................................................. 3,000 3,091
Pulte Corporation, 7.00%, Due 12/15/2003.................... 750 765
Sears Roebuck & Company, MTN, 9.05%, Due 2/6/2012........... 1,000 1,236
Tandy Corporation, MTN,6.31%, Due 12/17/2001................ 4,000 4,017
Weyerhaeuser Company, 9.05%, Due 2/1/2003................... 1,000 1,116
--------
TOTAL INDUSTRIAL........................................ 17,764
--------
UTILITY - 7.21%
Puget Sound Power & Light Company, MTN, 6.50%, Due
9/14/1999................................................. 3,000 3,023
Texas Utilities Electric Company
9.50%, Due 8/1/1999....................................... 3,000 3,108
7.375%, Due 8/1/2001...................................... 1,000 1,034
--------
TOTAL UTILITY........................................... 7,165
--------
FOREIGN - 3.34%
Province of Quebec, 8.80%, Due 4/15/2003.................... 3,000 3,326
--------
TOTAL FOREIGN........................................... 3,326
--------
TOTAL CORPORATE OBLIGATIONS............................. 49,190
--------
ASSET-BACKED SECURITIES - 10.19%
Citibank Credit Card Master Trust, Series 1997 3-B, 6.989%,
Due 2/10/2004............................................. 5,000 5,125
Saxon Asset Securities Trust, Series 1996-2A2, 6.475%, Due
11/25/2020................................................ 5,000 5,005
--------
TOTAL ASSET-BACKED SECURITIES........................... 10,130
--------
NON-AGENCY MORTGAGE BACKED OBLIGATIONS - 8.29%
Collateralized Mortgage Obligation Trust, 56 A, 9.00%, Due
5/1/2014.................................................. 64 65
Resolution Trust Corporation,
1992-7 A3, 7.414%, Due 3/25/2022.......................... 2,079 2,058
1992-6 A3, 7.675%, Due 1/25/2026.......................... 2,029 2,022
1992-1 A1, 7.539%, Due 5/25/2028.......................... 1,876 1,879
1992-4 A2, 7,618%, Due 7/25/2028.......................... 2,202 2,219
--------
TOTAL NON-AGENCY MORTGAGE BACKED OBLIGATIONS............ 8,243
--------
</TABLE>
50
<PAGE> 52
AMR INVESTMENT SERVICES SHORT-TERM BOND PORTFOLIO
SCHEDULE OF INVESTMENTS -- CONTINUED
April 30, 1998 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Par
Amount Value
---------- --------
(dollars in thousands)
<S> <C> <C>
SHORT-TERM INVESTMENTS (NOTE A) - 1.66%
First Boston Treasury Tri-Party Repurchase Agreement, 5.45%,
Due 5/1/1998 (Collateral held at The Chase Manhattan Bank,
N.A., by 7.50% U.S. Treasury Note, Due 5/15/2002 -- Market
Value -- $1,690).......................................... $ 1,649 $ 1,649
--------
TOTAL SHORT-TERM INVESTMENTS............................ 1,649
--------
TOTAL INVESTMENTS - 100.27% (COST $99,747).................. 99,684
--------
LIABILITIES, NET OF OTHER ASSETS - (0.27%).................. (273)
--------
TOTAL NET ASSETS - 100%..................................... $ 99,411
========
</TABLE>
- ---------------
Based on the cost of investments of $99,747 for federal income tax purposes at
April 30, 1998, the aggregate gross unrealized appreciation was $317, the
unrealized depreciation was $381, and the net unrealized depreciation of
investments was $64.
(A) Rates associated with short-term investments represent yield to maturity.
ABBREVIATIONS:
MTN - Medium-Term Note
REMIC - Real Estate Mortgage Investment Conduit
51
<PAGE> 53
AMR INVESTMENT SERVICES MONEY MARKET PORTFOLIO
SCHEDULE OF INVESTMENTS
April 30, 1998 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Par
Amount Value
---------- ----------
(dollars in thousands)
<S> <C> <C>
EURODOLLAR TIME DEPOSITS (NOTE A) - 2.47%
Skandinaviska Enskilda Banken, 5.531%, Due 5/1/1998......... $ 48,950 $ 48,950
----------
TOTAL EURODOLLAR TIME DEPOSITS.......................... 48,950
----------
CERTIFICATES OF DEPOSIT (NOTE A) - 33.36%
FOREIGN BANKS - 14.81%
Christiania Bank, Variable Rate, 5.627%, Due 6/29/1998...... 93,000 93,000
Postipankki, Limited, New York, Variable Rate, 5.585%, Due
10/28/1998 (Note C)....................................... 100,000 100,000
Societe Generale, New York, Variable Rate, 5.587%, Due
1/19/1999................................................. 100,000 99,965
----------
TOTAL FOREIGN BANKS..................................... 292,965
----------
DOMESTIC BANKS - 18.55%
Banco Popular de Puerto Rico, Variable Rate,
5.644%, Due 6/15/1998..................................... 50,000 50,000
5.656% Due 5/10/1999,..................................... 50,000 50,000
Comerica Bank, Detroit, 5.547%, Due 9/11/1998............... 95,000 94,978
CoreStates Bank N.A., Variable Rate, 5.627%, Due
6/12/1998................................................. 25,000 25,000
Fleet Bank, 6.037%, Due 3/19/1999........................... 10,000 10,035
PNC Bank, N.A., 5.577%, Due 1/19/1999....................... 100,000 99,959
U.S. Bank, N.A., Variable Rate, 5.563%, Due 6/22/1998....... 37,200 37,197
----------
TOTAL DOMESTIC BANKS.................................... 367,169
----------
TOTAL CERTIFICATES OF DEPOSIT........................... 660,134
----------
PROMISSORY NOTES (NOTES A AND C) - 26.78%
Combined Insurance, Variable Rate, 5.747%, Due 12/10/1998... 50,000 50,000
First Allmerica Financial Life Insurance Company, Variable
Rate, Due 11/5/1998 (Note D).............................. 90,000 90,000
General American Life Insurance Company, 5.737%, Due
11/20/1997................................................ 110,000 110,000
Goldman Sachs Group L.P., Variable Rate,
5.667%, Due 10/2/1998 (Note C)............................ 100,000 100,000
5.605%, Due 11/3/1998 (Note C)............................ 10,000 10,000
Jackson National Life Insurance Company, 5.696%, Due
9/1/1998 (Note C)......................................... 100,000 100,000
Security Life of Denver, 5.737%, Due 3/24/1999.............. 40,000 40,000
Transamerica Life & Annuity Insurance Company, 5.656%, Due
5/13/1999................................................. 30,000 30,000
----------
TOTAL PROMISSORY NOTES.................................. 530,000
----------
COMMERCIAL PAPER (NOTE A) - 3.03%
Bankers Trust New York Corporation, Variable Rate, 5.669%,
Due 7/30/1998............................................. 60,000 60,000
----------
TOTAL COMMERCIAL PAPER.................................. 60,000
----------
VARIABLE RATE MEDIUM-TERM NOTES (NOTE A) - 32.67%
American Honda Finance Corporation, 144A, (Note E) 5.667%,
Due 4/16/1999............................................. 95,000 95,000
Bankers Trust New York Corporation, 5.605%, Due 2/19/1999... 40,000 39,997
Bear Stearns Companies, Incorporated, 5.975%, Due
5/15/1998................................................. 8,000 8,001
Fleet Mortgage Group, Incorporated, 5.875%, Due 7/27/1998... 22,500 22,512
General Motors Acceptance Corporation, 5.702%, Due
2/2/2000.................................................. 115,000 115,000
International Business Machines Corporation, 5.547%, Due
4/5/1999.................................................. 88,000 87,953
Lehman Brothers Holdings, Incorporated, 5.697%, Due
1/20/1999................................................. 100,000 100,000
Merrill Lynch and Company, Incorporated,
5.904%, Due 5/19/1998..................................... 25,000 25,039
5.825%, Due 2/5/1999...................................... 15,000 15,030
Morgan Stanley Group, Incorporated, 5.904%, Due 3/1/1999.... 6,000 6,015
NationsBank, 5.784%, Due 12/18/1998......................... 32,000 32,041
Sanwa Business Credit Corporation, 144A, (Note E) 5.756%,
Due 5/14/1999............................................. 100,000 100,000
----------
TOTAL VARIABLE RATE MEDIUM-TERM NOTES................... 646,553
----------
</TABLE>
See accompanying notes
52
<PAGE> 54
AMR INVESTMENT SERVICES MONEY MARKET PORTFOLIO
SCHEDULE OF INVESTMENTS -- CONTINUED
April 30, 1998 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Par
Amount Value
---------- ----------
(dollars in thousands)
<S> <C> <C>
REPURCHASE AGREEMENTS (NOTES A AND B) - 0.39%
Goldman Sachs Tri-Party Government Repurchase Agreement,
5.35%, Due 5/1/1998, (Collateral held at The Bank of New
York Company, Incorporated by Federal Home Loan Mortgage
Corporation 6.62%, Due 3/17/2008 through Federal Home Loan
Mortgage Corporation 6.20%, Due 9/8/2008 -- Market Value
$7,804)................................................... $ 7,650 $ 7,650
----------
TOTAL REPURCHASE AGREEMENTS............................. 7,650
----------
TOTAL INVESTMENTS - 98.70% (COST $1,953,287)................ 1,953,287
----------
OTHER ASSETS, NET OF LIABILITIES - 1.30%.................... 25,695
----------
TOTAL NET ASSETS - 100%..................................... $1,978,982
==========
</TABLE>
- ---------------
Based on the cost of investments of $1,953,287 for federal income tax purposes
at April 30, 1998, there was no unrealized appreciation or depreciation of
investments.
(A) Rates associated with money market securities represent yield to maturity or
yield to next reset date.
(B) Repurchase agreements are fully collateralized by U.S. Treasury or
Government agency securities. All collateral is held at the Portfolio's
custodian bank, State Street Bank and Trust Company, or at subcustodian
banks, as indicated. The collateral is monitored daily by the Portfolio so
that its market value exceeds the carrying value of the repurchase
agreement.
(C) Obligation is subject to an unconditional put back to the issuer with seven
calendar days notice.
(D) Obligation is subject to an unconditional put back to the issuer with ninety
calendar days notice.
(E) Security exempt from registration under Rule 144A of the Securities Act of
1933. These securities may be resold in transactions exempt from
registration, normally to qualified institutional buyers. At the period end,
the value of these securities amounted to $195,000,000 or 9.9% of net
assets.
ABBREVIATION:
L.P. - Limited Partnership
See accompanying notes
53
<PAGE> 55
AMR INVESTMENT SERVICES MUNICIPAL MONEY MARKET PORTFOLIO
SCHEDULE OF INVESTMENTS
April 30, 1998 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Par
Amount Value
-------- -----------
(dollars in thousands)
<S> <C> <C>
MUNICIPAL OBLIGATIONS - 94.64%
COMMERCIAL PAPER (NOTE A) - 15.00%
Brazos River, Texas Pollution Control Revenue Refunding
Bonds (Texas Utilities Electric Company), Series 1995A,
3.65%, Due 7/6/1998, LOC Canadian Imperial Bank of
Commerce.................................................. $ 2,200 $ 2,200
Carbon County, Pennsylvania Industrial Development Authority
Resource Recovery Bonds (Panther Creek Project), Series
1991A, 3.65%, Due 7/6/1998, LOC National Westminster Bank,
PLC....................................................... 2,500 2,500
City of Burlington, Kansas Customized Purchase Pollution
Control Refunding and Improvement Revenue Bonds, Series
1985B, 3.50%, Due 8/14/1998, matures 9/1/2015, LOC Societe
Generale.................................................. 1,600 1,600
Missouri State Environmental Improvement and Energy Resource
Authority Pollution Control Revenue Bonds (Union Electric
Company Project) Series 1985A, 3.45%, Due 8/6/1998, LOC
Union Bank of Switzerland................................. 6,000 6,000
Montgomery County, Pennsylvania Industrial Development
Pollution Control Revenue Bonds (Peco Energy Company),
Series 1996, 3.70%, Due 10/16/1998, LOC Canadian Imperial
Bank of Commerce.......................................... 3,000 3,000
Sweetwater County, Wyoming Customized Pollution Control
Revenue Refunding Bonds (Pacificorp Project), Series
1988A, 3.60%, Due 8/11/1998, LOC Union Bank of
Switzerland............................................... 3,000 3,000
Toledo-Lucas County, Ohio Port Facility Refunding Revenue
Bonds (CSX Transportation, Incorporated), Series 1992,
3.80%, Due 8/6/1998, LOC Bank of Nova Scotia.............. 1,200 1,200
West Virginia Public Energy Authority Revenue Bonds
(Morgantown Association Project), Series 1989, 3.60%, Due
7/28/1998, LOC Swiss Bank................................. 1,000 1,000
----------
TOTAL COMMERCIAL PAPER.................................. 20,500
----------
VARIABLE RATE DEMAND OBLIGATIONS
(NOTE A) - 79.64%
ARIZONA - 3.72%
Apache County, Arizona Industrial Development Authority
Pollution Control Revenue (Tucson Electric Power Company),
Series 1981B, 4.45%, Due 10/1/2021, LOC Bank of
Tokyo-Mitsubishi, Limited................................. 2,400 2,400
Maricopa County, Arizona Pollution Control Corporation
(Arizona Public Service Company), Series E, 4.20%, Due
5/1/2029, LOC Bank of America............................. 1,200 1,200
Pima County, Arizona Revenue Refunding Bonds Industrial
Development Authority (County of Tucson Retirement
Project), 4.10%, Due 1/1/2009, LOC Morgan Guaranty Trust
Company................................................... 800 800
----------
TOTAL ARIZONA........................................... 4,400
----------
CALIFORNIA - 9.48%
California Pollution Control Finance Authority Control
Resource Recovery Revenue Bonds (Wadham Energy LP), Series
1987A, 4.75%, Due 11/1/2017, LOC Banque Paribas........... 3,800 3,800
California Pollution Control Finance Authority Revenue Bonds
(Pacific Gas & Electric Company), Series C, 4.00%, Due
11/1/2026, LOC Bank of America............................ 3,000 3,000
California Statewide Communities Development Corporation
Revenue Watt Four LLC-C, 3.50%, Due 5/1/2022, LOC Sanwa
Bank, Limited............................................. 1,400 1,400
Union City, California Multifamily Revenue Refunding Housing
Authority (Skylark Apartments Project), Series 1989B,
4.50%, Due 11/1/2007, LOC Sumitomo Bank, Limited.......... 3,000 3,000
----------
TOTAL CALIFORNIA........................................ 11,200
----------
COLORADO - 1.61%
Moffat County Pollution Control Revenue (Ute Electric
Company Project), Bond Insurance - AMBAC Indemnity
Corporation, Series 1984, 4.10%, due 7/1/2010, SPA Societe
Generale.................................................. 1,900 1,900
----------
TOTAL COLORADO.......................................... 1,900
----------
CONNECTICUT - 3.39%
Connecticut State Health and Education Facilities Authority
Revenue (Edgehill Project), Series 1997B, 4.05%, Due
7/1/2004, LOC Banque Paribas.............................. 4,000 4,000
----------
TOTAL CONNECTICUT....................................... 4,000
----------
</TABLE>
See accompanying notes
54
<PAGE> 56
AMR INVESTMENT SERVICES MUNICIPAL MONEY MARKET PORTFOLIO
SCHEDULE OF INVESTMENTS -- CONTINUED
April 30, 1998 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Par
Amount Value
-------- -----------
(dollars in thousands)
<S> <C> <C>
DISTRICT OF COLUMBIA - 1.72%
District of Columbia General Obligation Bonds Ad Valorem
Property Tax, 4.35%, Due 10/1/2009, LOC Bank of Nova
Scotia.................................................... $ 500 $ 500
District of Columbia University Revenue Bonds, Series 1988B,
4.05%, Due 4/1/2017, LOC Bayerische Landesbank
Girozentrale.............................................. 1,535 1,535
----------
TOTAL DISTRICT OF COLUMBIA.............................. 2,035
----------
FLORIDA - 0.93%
Dade County, Florida Capital Asset Acquisition Special
Obligation Bonds, Series 1990, 4.65%, Due 10/1/2010, LOC
Sanwa Bank, Limited....................................... 1,100 1,100
----------
TOTAL FLORIDA........................................... 1,100
----------
GEORGIA - 10.32%
Athens-Clarke County Georgia Industrial Development
Authority (Nakanishi Manufacturing Corporation Project),
5.025%, Due 5/1/2008, LOC Sumitomo Bank, Limited.......... 2,000 2,000
Clayton County, Georgia Housing Authority (Chateau Forest
Apartments), Series E, Bond Insurance - Financial Security
Assurance, 4.05%, Due 1/1/2021, SPA Barclays Bank, PLC.... 5,000 5,000
Industrial Development Authority of Cartersville (Sekisui
Jushi America, Incorporated Project), Series 1992, 4.95%,
Due 6/1/2012, LOC Sanwa Bank, Limited..................... 1,700 1,700
Thomaston-Upson County Industrial Development Revenue
Authority (Yamaha Music Manufacturing, Incorporated
Project), Series 1988, 4.95%, Due 8/1/2018, LOC Bank of
Tokyo-Mitsubishi, Limited................................. 3,500 3,500
----------
TOTAL GEORGIA........................................... 12,200
----------
ILLINOIS - 2.73%
Illinois Development Finance Authority (Illinois Power
Project), Series 1987B, 4.70%, Due 3/1/2017, LOC Bank of
Tokyo-Mitsubishi, Limited................................. 900 900
Illinois Health Facilities Authority (Loyola University
Health System B Revenue Bonds), Bond Insurance - MBIA,
4.00%, Due 7/1/2024, SPA Credit Suisse.................... 1,900 1,900
Oswego, Illinois Industrial Development Revenue Bonds
(Griffith Laboratories World Wide, Incorporated Project),
Series 1995, 4.25%, Due 7/1/2025, LOC ABN AMRO Bank,
N.V....................................................... 430 430
----------
TOTAL ILLINOIS.......................................... 3,230
----------
INDIANA - 1.23%
Fort Wayne Industrial Economic Development Revenue Bonds
(ND-Tech Corporation Project), Series 1989, 4.30%, Due
7/1/2009, LOC Societe Generale............................ 1,000 1,000
Princeton Industrial Development Revenue Bonds (Orion
Electric America, Incorporated Project), Series 1987,
4.50%, Due 4/30/2017, LOC Bank of Tokyo-Mitsubishi,
Limited................................................... 455 455
----------
TOTAL INDIANA........................................... 1,455
----------
IOWA - 1.73%
Dubuque, Iowa Industrial Development Revenue Bonds (Swiss
Valley Farms Company Project), Series 1987, 4.15%, Due
12/1/2001, LOC Rabobank Nederland......................... 1,150 1,150
Polk County, Iowa Hospital Equipment and Improvement, Bond
Insurance - MBIA, 4.05%, Due 12/1/2005, SPA Bank of New
York Company, Incorporated................................ 900 900
----------
TOTAL IOWA.............................................. 2,050
----------
KENTUCKY - 1.18%
Hopkinsville Industrial Development Revenue Bonds (American
Precision Machinery, Incorporated Project), Series 1990,
4.65%, Due 5/1/2000, LOC Bank of Tokyo-Mitsubishi,
Limited................................................... 1,400 1,400
----------
TOTAL KENTUCKY.......................................... 1,400
----------
LOUISIANA - 1.84%
Jefferson Parish Louisiana Hospital District #1 (West
Jefferson Medical Center Project), Series 1986, 4.05%, Due
1/1/2026, LOC Rabobank Nederland.......................... 1,185 1,185
</TABLE>
See accompanying notes
55
<PAGE> 57
AMR INVESTMENT SERVICES MUNICIPAL MONEY MARKET PORTFOLIO
SCHEDULE OF INVESTMENTS -- CONTINUED
April 30, 1998 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Par
Amount Value
-------- -----------
(dollars in thousands)
<S> <C> <C>
Louisiana Public Facilities Finance Authority (College &
University Equipment and Capital Facilities Revenue
Bonds), Bond Insurance - FGIC, Series 1985, 4.05%, Due
9/1/2010, LOC Societe Generale............................ $ 985 $ 985
----------
TOTAL LOUISIANA......................................... 2,170
----------
MASSACHUSETTS - 0.34%
Massachusetts State Health & Education Facilities Authority
Revenue Bonds - (Capital Asset Program A) 3.85%, Due
1/1/2001, LOC First Chicago NBD........................... 400 400
----------
TOTAL MASSACHUSETTS..................................... 400
----------
MISSOURI - 4.65%
Missouri Higher Education Loan Authority Revenue Bonds,
Series 1988A, 4.20%, Due 6/1/2017, LOC National
Westminster Bank, PLC..................................... 5,500 5,500
----------
TOTAL MISSOURI.......................................... 5,500
----------
NEBRASKA - 0.85%
Lancaster County, Nebraska Industrial Revenue Bonds
(Sun-Husker Foods, Incorporated Project), Series 1989,
4.95%, Due 8/15/2009, LOC Bank of Tokyo-Mitsubishi,
Limited................................................... 1,000 1,000
----------
TOTAL NEBRASKA.......................................... 1,000
----------
NEW HAMPSHIRE - 0.42%
Industrial Development Authority of the State of New
Hampshire (The Conn Light and Power Project), Series 1988,
4.20%, Due 8/1/2018, LOC Union Bank of Switzerland........ 500 500
----------
TOTAL NEW HAMPSHIRE..................................... 500
----------
NEW JERSEY - 2.48%
New Jersey Health Care Facilities Financing Authority
Revenue Bonds(Carrier Foundation Project), Bond
Insurance - FGIC, Series 1985C, 4.30%, Due 7/1/2005, SPA
Banque Paribas............................................ 2,935 2,935
----------
TOTAL NEW JERSEY........................................ 2,935
----------
NEW MEXICO - 1.61%
Albuquerque, New Mexico Gross Receipts Revenue Bonds, Series
A, 4.05%, Due 7/1/2022, LOC Canadian Imperial Bank of
Commerce.................................................. 1,900 1,900
----------
TOTAL NEW MEXICO........................................ 1,900
----------
NEW YORK - 1.99%
New York, New York General Obligation Bonds, Series 1993B-4,
4.25%, Due 8/15/2023, LOC Union Bank of Switzerland....... 600 600
New York City Municipal Water Finance Authority Water &
Sewer Systems, Bond Insurance - Securities Purchasing,
Inc., Series 1995A, 4.25%, Due 6/15/2025, SPA FGIC........ 500 500
New York State Local Government Assistance Corporation,
Series 1995 D, 3.90%, Due 4/1/2025, LOC Societe
Generale.................................................. 1,050 1,050
New York City, General Obligation Bonds, Series 1994 B-4,
4.25%, Due 8/15/2021, LOC Union Bank of Switzerland....... 200 200
----------
TOTAL NEW YORK.......................................... 2,350
----------
NORTH CAROLINA - 2.71%
Wake County, North Carolina Industrial Facilities &
Pollution Control Financing Authority Revenue Bonds,
4.50%, Due 3/1/2017, LOC Sumitomo Bank, Limited........... 3,200 3,200
----------
TOTAL NORTH CAROLINA.................................... 3,200
----------
OREGON - 2.54%
State of Oregon (Toyo Tanso USA), Series CXLVII, 4.775%, Due
2/1/2012, LOC Bank of Tokyo - Mitsubishi, Limited......... 3,000 3,000
----------
TOTAL OREGON............................................ 3,000
----------
PENNSYLVANIA - 8.93%
Cambria County Industrial Development Authority Resource
Recovery Revenue Bonds(Cambria Cogen Company Project),
Series 1989 V-1, 4.15%, Due 9/1/2019, LOC ABN AMRO Bank,
N.V.,..................................................... 1,000 1,000
</TABLE>
See accompanying notes
56
<PAGE> 58
AMR INVESTMENT SERVICES MUNICIPAL MONEY MARKET PORTFOLIO
SCHEDULE OF INVESTMENTS -- CONTINUED
April 30, 1998 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Par
Amount Value
-------- -----------
(dollars in thousands)
<S> <C> <C>
Cambria County Industrial Development Authority Resource
Recovery Revenue Bonds(Cambria Cogen Company Project),
Series 1989 V-2, 4.15%, Due 9/1/2019, LOC ABN AMRO Bank,
N.V.,..................................................... $ 900 $ 900
Cambria County Industrial Development Authority Resource
Recovery Revenue Bonds (Cambria Cogen Company Project),
Series 1991 V-1, 4.15%, Due 9/1/2019, LOC ABN AMRO Bank,
N.V....................................................... 2,250 2,250
Gettysburg Area Industrial Development Authority Industrial
Development Refunding Bonds (Dal-Tile Corporation), Series
1987B, 4.20%, Due 3/1/2004, LOC Credit Suisse............. 1,370 1,370
Northumberland County Industrial Development Authority
Resource Recovery Revenue Bonds (Foster Wheeler Mt.
Carmel, Incorporated Project), Series 1987A, 4.15%, Due
2/1/2010, LOC Union Bank of Switzerland................... 1,000 1,000
Northumberland County Industrial Development Authority
Resource Recovery Revenue Bonds (Foster Wheeler Mt.
Carmel, Incorporated Project), Series 1987B, 4.15%, Due
2/1/2010, LOC Union Bank of Switzerland................... 830 830
Schuykill County, Pennsylvania Industrial Development
Authority Revenue Bonds, 4.05%, Due 12/1/2002, LOC Mellon
Bank, N.A................................................. 3,200 3,200
----------
TOTAL PENNSYLVANIA...................................... 10,550
----------
SOUTH CAROLINA - 0.85%
Charleston County, South Carolina Industrial Revenue
Development Bonds (Zeigler Coal Holding Company), 4.35%,
Due 8/1/2028, LOC Bank of America......................... 1,000 1,000
----------
TOTAL SOUTH CAROLINA.................................... 1,000
----------
TENNESSEE - 1.78%
Covington, Tennessee Industrial Development Board Industrial
Development Revenue Bonds (Charms Company Project), Series
1992, 4.30%, Due 6/1/2027, LOC Societe Generale........... 300 300
Rutherford County, Tennessee (Outboard Marine Project),
Series 1987, 4.30%, Due 10/1/2007, LOC First Chicago NBD
Corporation............................................... 1,800 1,800
----------
TOTAL TENNESSEE......................................... 2,100
----------
TEXAS - 3.39%
Texas Small Business Industrial Development Corporation
Revenue Bond (Texas Public Facilities Capital Access),
4.10%, Due 7/1/2026, LOC National Westminster Bank, PLC... 4,000 4,000
----------
TOTAL TEXAS............................................. 4,000
----------
UTAH - 3.39%
Utah State Board of Regents Student Loan Revenue Bonds, Bond
Insurance-AMBAC Indemnity Corporation, Series 1988C,
4.20%, Due 11/1/2013 SPA Dresdner Bank AG................. 1,000 1,000
Utah Student Board of Regents Student Loan Revenue Bonds,
Bond Insurance-AMBAC Indemnity Corporation, Series B,
4.10%, Due 11/1/2000, SPA Dresdner Bank AG................ 3,000 3,000
----------
TOTAL UTAH.............................................. 4,000
----------
VERMONT - 0.42%
Vermont Industrial Development Authority (Ryegate Project),
Series 1990, 4.25%, Due 12/1/2015, LOC ABN AMRO Bank,
N.V....................................................... 500 500
----------
TOTAL VERMONT........................................... 500
----------
VIRGINIA - 0.17%
Virginia Housing Development Authority (AHC Service
Corporation), Series 1987A, 4.45%, Due 9/1/2017, LOC Bank
of Tokyo-Mitsubishi, Limited.............................. 200 200
----------
TOTAL VIRGINIA.......................................... 200
----------
WASHINGTON - 8.11%
Pierce County, Washington Economic Development Corporation
Dock & Warf Facilities Revenue Bonds (SCS Industries
Project), Series 1995, 4.30%, Due 7/1/2030, LOC Bank of
Nova Scotia............................................... 3,585 3,585
Washington State Public Power Supply System Refund Electric
Revenue Bonds (Nuclear Project #1), Bond Insurance-AMBAC
Indemnity Corporation, Series CMC2, 4.25%, Due 7/1/2007,
SPA The Chase Manhattan Bank.............................. 2,000 2,000
Washington State Public Power Supply System, Refunding
Electric Revenue Bonds, 4.25%, Due 7/1/2018, LOC Bank of
America................................................... 4,000 4,000
----------
TOTAL WASHINGTON........................................ 9,585
----------
</TABLE>
See accompanying notes
57
<PAGE> 59
AMR INVESTMENT SERVICES MUNICIPAL MONEY MARKET PORTFOLIO
SCHEDULE OF INVESTMENTS -- CONTINUED
April 30, 1998 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Par
Amount Value
-------- -----------
(dollars in thousands)
<S> <C> <C>
WEST VIRGINIA - 0.94%
Marion County, West Virginia Solid Waste Disposal Facility
(Grant Town Cogeneration Project), Series 1990B, 4.20%,
Due 10/1/2017, LOC National Westminster Bank, PLC......... $ 115 $ 115
Marion County, West Virginia Solid Waste Disposal Facility
(Grant Town Cogeneration Project), Series 1990C, 4.20%,
Due 10/1/2017, LOC National Westminster Bank, PLC......... 1,000 1,000
----------
TOTAL WEST VIRGINIA..................................... 1,115
----------
TOTAL VARIABLE RATE DEMAND OBLIGATIONS.................. 100,975
----------
TOTAL MUNICIPAL OBLIGATIONS............................. 121,475
----------
OTHER INVESTMENTS - 1.73%
Alliance Capital Management Institutional Reserves Tax-Free
Portfolio (#38)........................................... 1,450 1,450
Provident Institutional Funds Municipal Cash Fund........... 589 589
----------
TOTAL OTHER INVESTMENTS................................. 2,039
----------
TOTAL INVESTMENTS - 104.53% (COST $123,514)................. 123,514
----------
LIABILITIES, NET OF OTHER ASSETS - (4.53%).................. (5,349)
----------
TOTAL NET ASSETS - 100%..................................... $ 118,165
==========
</TABLE>
- ---------------
Based on the cost of investments of $123,514 for federal income tax purposes at
April 30, 1998, there was no unrealized appreciation or depreciation of
investments.
(A) Rates associated with money market securities represent yield to maturity or
yield to next reset date.
ABBREVIATIONS:
AG - Company
FGIC - Financial Guaranty Insurance Company
LOC - Letter of Credit
MBIA - Municipal Bond Investors Assurance
NV - Company
PLC - Public Limited Corporation
SPA - Support Agreement
See accompanying notes
58
<PAGE> 60
AMR INVESTMENT SERVICES U.S. GOVERNMENT MONEY MARKET PORTFOLIO
SCHEDULE OF INVESTMENTS
April 30, 1998 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Par
Amount Value
-------- ---------
(dollars in thousands)
<S> <C> <C>
U.S. GOVERNMENT REPURCHASE AGREEMENTS (NOTES A AND B) - 28.13%
Merrill Lynch & Company, Incorporated Tri-Party Government
Repurchase Agreement, 5.50%, Due 5/1/1998 (Collateral held
at The Chase Manhattan Bank, N.A. by Federal Home Loan
Mortgage Corporation 7.00%, Due 10/1/2009 through Federal
National Mortgage Association 6.50%, Due
4/1/2028 -- Market Value $19,607)......................... $19,222 $ 19,222
Goldman Sachs Tri-Party Government Repurchase Agreement,
5.54%, Due 5/1/1998 (Collateral held at The Bank of New
York Company, Incorporated by Federal Home Loan Mortgage
Corporation 6.00%, Due 9/1/1998 through Federal Home Loan
Mortgage Corporation 7.00%, Due 2/1/2028 -- Market Value
$30,429).................................................. 30,000 30,000
--------
TOTAL U.S. GOVERNMENT REPURCHASE AGREEMENTS............. 49,222
--------
U.S. GOVERNMENT AGENCY INSTRUMENTS (NOTE A) - 71.40%
Federal Home Loan Bank Variable Rate, 5.428%, Due
7/7/1998.................................................. 50,000 49,992
Federal National Mortgage Association, Variable Rate,
5.432%, Due 9/10/1998..................................... 25,000 24,993
Federal National Mortgage Associate, Variable Rate, 5.395%,
Due 2/19/1999............................................. 50,000 49,976
--------
TOTAL U.S. GOVERNMENT AGENCY INSTRUMENTS................ 124,961
--------
TOTAL INVESTMENTS - 99.53% (COST - $174,183)................ 174,183
--------
OTHER ASSETS, NET OF LIABILITIES - 0.47%.................... 831
--------
TOTAL NET ASSETS - 100%..................................... $175,014
========
</TABLE>
- ---------------
Based on the cost of investments of $174,183 for federal income tax purposes at
April 30, 1998, there was no unrealized appreciation or depreciation of
investments.
(A) Rates associated with money market securities represent yield to maturity,
or yield to next reset date.
(B) Repurchase agreements are fully collateralized by U.S. Treasury or
Government agency securities. All collateral is held at the Portfolio's
custodian bank, State Street Bank and Trust Company, or at subcustodian
banks, as indicated. The collateral is monitored daily by the Portfolio so
that its market value exceeds the carrying value of the repurchase
agreement.
See accompanying notes
59
<PAGE> 61
AMR INVESTMENT SERVICES TRUST PORTFOLIOS
STATEMENTS OF ASSETS AND LIABILITIES
April 30, 1998 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Short-
Growth and Intermediate International Term
Balanced Income Bond Equity Bond
---------- ---------- ------------ ------------- --------
(in thousands)
<S> <C> <C> <C> <C> <C>
ASSETS:
Investments in securities at value (cost -
$1,056,357; $1,609,517; $258,980; $989,636;
$99,747, respectively)*.................... $1,264,276 $2,205,597 $259,875 $1,206,900 $ 99,684
Cash, including foreign currency............. - 4,936 - 39,405 -
Unrealized appreciation on foreign currency
contracts.................................. - - - 149 -
Dividends and interest receivable............ 7,904 2,859 2,892 4,734 1,285
Reclaims receivable.......................... - - - 378 -
Receivable for investments sold.............. 11,324 5,737 - 1,683 -
Deferred organization costs, net............. 5 5 24 5 5
Other assets................................. - - 17 - -
---------- ---------- -------- ---------- --------
TOTAL ASSETS............................. 1,283,509 2,219,134 262,808 1,253,254 100,974
---------- ---------- -------- ---------- --------
LIABILITIES:
Payable for investments purchased............ 9,811 2,587 - 20,375 -
Payable upon return of securities loaned..... 188,674 131,834 36,382 174,553 -
Management and investment advisory fees
payable (Note 2)........................... 860 1,672 32 1,415 20
Accrued organization costs................... 33 33 26 33 33
Other liabilities............................ 1,162 170 978 471 1,510
---------- ---------- -------- ---------- --------
TOTAL LIABILITIES........................ 200,540 136,296 37,418 196,847 1,563
---------- ---------- -------- ---------- --------
NET ASSETS APPLICABLE TO INVESTORS' BENEFICIAL
INTERESTS...................................... $1,082,969 $2,082,838 $225,390 $1,056,407 $ 99,411
========== ========== ======== ========== ========
</TABLE>
* Includes repurchase agreements of $5,523 and $1,649 for the Intermediate Bond
Portfolio and Short-Term Bond Portfolio, respectively.
See accompanying notes
60
<PAGE> 62
AMR INVESTMENT SERVICES TRUST PORTFOLIOS
STATEMENTS OF ASSETS AND LIABILITIES -- CONTINUED
April 30, 1998 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Money Municipal U.S. Government
Market Money Market Money Market
---------- ------------ ---------------
(in thousands)
<S> <C> <C> <C>
ASSETS:
Investments in securities at value (cost - $1,953,287;
$123,514; $174,183, respectively)*.................... $1,953,287 $123,514 $174,183
Cash.................................................... 11,965 - -
Dividends and interest receivable....................... 14,066 560 917
Receivable for investments sold......................... - 2,300 -
Deferred organization costs, net........................ 5 4 4
---------- -------- --------
TOTAL ASSETS........................................ 1,979,323 126,378 175,104
---------- -------- --------
LIABILITIES:
Payable for investments purchased....................... - 3,006 -
Management and investment advisory fees payable (Note
2).................................................... 238 14 22
Accrued organization costs.............................. 33 33 33
Other liabilities....................................... 70 5,160 35
---------- -------- --------
TOTAL LIABILITIES................................... 341 8,213 90
---------- -------- --------
NET ASSETS APPLICABLE TO INVESTORS' BENEFICIAL INTERESTS.... $1,978,982 $118,165 $175,014
========== ======== ========
</TABLE>
- ---------------
* Includes repurchase agreements of $7,650, $49,222 for the Money Market and
U.S. Government Money Market Portfolios, respectively.
See accompanying notes
61
<PAGE> 63
AMR INVESTMENT SERVICES TRUST PORTFOLIOS
STATEMENTS OF OPERATIONS
April 30, 1998 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Growth and Intermediate International Short-Term
Balanced Income Bond Equity Bond
------------ ------------ ------------ ------------- ------------
(in thousands)
<S> <C> <C> <C> <C> <C>
INVESTMENT INCOME:
Interest income............................. $ 13,817 $ 1,256 $6,687 $ 1,478 $3,434
Dividend income (net of foreign taxes of
$900 in International Equity Portfolio)... 6,727 20,564 - 9,659 -
Income derived from securities lending,
net....................................... 100 106 - 96 7
-------- -------- ------ -------- ------
TOTAL INVESTMENT INCOME................. 20,644 21,926 6,687 11,233 3,441
-------- -------- ------ -------- ------
EXPENSES:
Management and investment advisory fees
(Note 2).................................. 1,489 2,763 254 1,899 119
Custodian fees.............................. 56 64 26 356 9
Professional fees........................... 21 23 6 18 6
Other expenses.............................. 76 136 12 197 26
-------- -------- ------ -------- ------
TOTAL EXPENSES.......................... 1,642 2,986 298 2,470 160
-------- -------- ------ -------- ------
NET INVESTMENT INCOME........................... 19,002 18,940 6,389 8,763 3,281
-------- -------- ------ -------- ------
REALIZED AND UNREALIZED GAIN (LOSS) ON
INVESTMENTS:
Net realized gain (loss) on investments..... 40,130 79,804 2,422 20,202 (203)
Net realized loss on foreign currency
transactions.............................. - - - (3,382) -
Change in net unrealized appreciation or
depreciation of investments............... 55,236 196,590 (977) 121,521 63
Change in net unrealized depreciation of
foreign currency contracts and
translations.............................. - - - (15,024) -
-------- -------- ------ -------- ------
NET GAIN (LOSS) ON INVESTMENTS.......... 95,366 276,394 1,445 123,317 (140)
-------- -------- ------ -------- ------
NET INCREASE IN NET ASSETS RESULTING FROM
OPERATIONS.................................... $114,368 $295,334 $7,834 $132,080 $3,141
======== ======== ====== ======== ======
</TABLE>
See accompanying notes
62
<PAGE> 64
AMR INVESTMENT SERVICES TRUST PORTFOLIOS
STATEMENTS OF OPERATIONS -- CONTINUED
April 30, 1998 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
U.S.
Money Municipal Government
Market Money Market Money Market
------- ------------ ------------
(in thousands, except share and
per share amounts)
<S> <C> <C> <C>
INVESTMENT INCOME:
Interest income......................................... $59,552 $2,176 $4,209
------- ------ ------
TOTAL INVESTMENT INCOME............................. 59,552 2,176 4,209
------- ------ ------
EXPENSES:
Management and investment advisory fees (Note 2)........ 1,547 81 111
Custodian fees.......................................... 114 6 8
Professional fees....................................... 20 1 2
Amortization of organization costs...................... - 14 13
Other expenses.......................................... 62 14 9
------- ------ ------
TOTAL EXPENSES...................................... 1,743 116 143
------- ------ ------
NET INVESTMENT INCOME....................................... 57,809 2,060 4,066
------- ------ ------
REALIZED GAIN ON INVESTMENTS:
Net realized gain on investments........................ 45 - -
------- ------ ------
NET GAIN ON INVESTMENTS............................. 45 - -
------- ------ ------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS........ $57,854 $2,060 $4,066
======= ====== ======
</TABLE>
See accompanying notes
63
<PAGE> 65
AMR INVESTMENT SERVICES TRUST PORTFOLIOS
STATEMENTS OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Balanced Growth and Income Intermediate Bond
---------------------------- ---------------------------- ----------------------------
Six Months
Six Months Six Months Ended
Ended Year Ended Ended Year Ended April 30, September 15,
April 30, 1998 October 31, April 30, 1998 October 31, 1998 to October 31,
(Unaudited) 1997 (Unaudited) 1997 (Unaudited) 1997
-------------- ----------- -------------- ----------- ----------- --------------
(in thousands)
<S> <C> <C> <C> <C> <C> <C>
INCREASE IN NET ASSETS:
OPERATIONS:
Net investment income.......... $ 19,002 $ 41,759 $ 18,940 $ 33,481 $ 6,389 $ 1,585
Net realized gain (loss) on
investments and foreign
currency transactions......... 40,130 134,243 79,804 123,365 2,422 255
Change in net unrealized
appreciation or depreciation
of investments and foreign
currency translations......... 55,236 16,668 196,590 166,119 (977) 1,874
---------- -------- ---------- ---------- -------- --------
NET INCREASE IN NET ASSETS
RESULTING FROM
OPERATIONS................ 114,368 192,670 295,334 322,965 7,834 3,714
---------- -------- ---------- ---------- -------- --------
TRANSACTIONS IN INVESTORS'
BENEFICIAL INTERESTS:
Contributions.................. 98,202 282,834 208,660 446,329 37,575 224,975
Withdrawals.................... (83,268) (417,319) (89,756) (212,851) (36,334) (12,374)
---------- -------- ---------- ---------- -------- --------
NET INCREASE (DECREASE) IN
NET ASSETS RESULTING FROM
TRANSACTIONS IN INVESTORS'
BENEFICIAL INTERESTS...... 14,934 (134,485) 118,904 233,478 1,241 212,601
---------- -------- ---------- ---------- -------- --------
NET INCREASE IN NET ASSETS........ 129,302 58,185 414,238 556,443 9,075 216,315
---------- -------- ---------- ---------- -------- --------
NET ASSETS:
Beginning of period............ 953,667 895,482 1,668,600 1,112,157 216,315 -
---------- -------- ---------- ---------- -------- --------
END OF PERIOD.................. $1,082,969 $953,667 $2,082,838 $1,668,600 $225,390 $216,315
========== ======== ========== ========== ======== ========
- ------------------------------------------------------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS:
- ------------------------------------------------------------------------------------------------------------------------------
RATIOS:
Expenses to average net assets
(annualized).................. 0.33% 0.34% 0.32% 0.34% 0.29% 0.29%
Net investment income to
average net assets
(annualized).................. 3.79% 4.11% 2.04% 2.45% 6.20% 5.92%
Portfolio turnover rate........ 43% 105% 13% 35% 139% 47%
Average commission rate paid*.. $0.0462 $0.0385 $0.0473 $0.0395 - -
<CAPTION>
International Equity Short-Term Bond
---------------------------- -------------------------
Six Months
Six Months Ended
Ended Year Ended April 30, Year Ended
April 30, 1998 October 31, 1998 October 31,
(Unaudited) 1997 (Unaudited) 1997
-------------- ----------- ----------- -----------
(in thousands)
<S> <C> <C> <C> <C>
INCREASE IN NET ASSETS:
OPERATIONS:
Net investment income.......... $ 8,763 $ 15,411 $ 3,281 $ 13,988
Net realized gain (loss) on
investments and foreign
currency transactions......... 16,820 21,331 (203) (355)
Change in net unrealized
appreciation or depreciation
of investments and foreign
currency translations......... 106,497 57,105 63 (644)
---------- -------- ------- --------
NET INCREASE IN NET ASSETS
RESULTING FROM
OPERATIONS................ 132,080 93,847 3,141 12,989
---------- -------- ------- --------
TRANSACTIONS IN INVESTORS'
BENEFICIAL INTERESTS:
Contributions.................. 370,870 397,499 10,958 95,910
Withdrawals.................... (208,216) (134,169) (8,257) (188,507)
---------- -------- ------- --------
NET INCREASE (DECREASE) IN
NET ASSETS RESULTING FROM
TRANSACTIONS IN INVESTORS'
BENEFICIAL INTERESTS...... 162,654 263,330 2,701 (92,597)
---------- -------- ------- --------
NET INCREASE IN NET ASSETS........ 294,734 357,177 5,842 79,608
---------- -------- ------- --------
NET ASSETS:
Beginning of period............ 761,673 404,496 93,569 173,177
---------- -------- ------- --------
END OF PERIOD.................. $1,056,407 $761,673 $99,411 $ 93,569
========== ======== ======= ========
- --------------------------------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS:
- ---------------------------------------------------------------------------------------------------------------------
RATIOS:
Expenses to average net assets
(annualized).................. 0.57% 0.57% 0.34% 0.30%
Net investment income to
average net assets
(annualized).................. 2.03% 2.55% 6.90% 6.91%
Portfolio turnover rate........ 12% 15% 39% 282%
Average commission rate paid*.. $0.159 $0.0164 - -
</TABLE>
- ---------------
* Foreign commissions usually are lower than U.S. commissions when expressed as
cents per share due to the lower per share price of many non-U.S. securities.
See accompanying notes
64
<PAGE> 66
AMR INVESTMENT SERVICES TRUST PORTFOLIOS
STATEMENTS OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
U.S. Government
Money Market Municipal Money Market Money Market
-------------------------- ------------------------- -------------------------
Six Months Six Months Six Months
Ended Ended Ended
April 30, Year Ended April 30, Year Ended April 30, Year Ended
1998 October 31, 1998 October 31, 1998 October 31,
(Unaudited) 1997 (Unaudited) 1997 (Unaudited) 1997
----------- ------------ ----------- ----------- ----------- -----------
(in thousands)
<S> <C> <C> <C> <C> <C> <C>
INCREASE IN NET ASSETS:
OPERATIONS:
Net investment income..................... $ 57,809 $ 103,560 $ 2,060 $ 3,432 $ 4,066 $ 6,233
Net realized gain on investments.......... 45 31 - - - 5
----------- ------------ --------- --------- --------- ---------
TOTAL INCREASE IN NET ASSETS RESULTING
FROM OPERATIONS...................... 57,854 103,591 2,060 3,432 4,066 6,238
----------- ------------ --------- --------- --------- ---------
TRANSACTIONS IN INVESTORS' BENEFICIAL
INTERESTS:
Contributions............................. 2,865,371 18,538,305 147,502 186,159 177,322 365,792
Withdrawals............................... (2,915,573) (18,435,488) (132,088) (170,158) (138,154) (330,942)
----------- ------------ --------- --------- --------- ---------
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM TRANSACTIONS IN
INVESTORS' BENEFICIAL INTERESTS...... (50,202) 102,817 15,414 16,001 39,168 34,850
----------- ------------ --------- --------- --------- ---------
NET INCREASE IN NET ASSETS................... 7,652 206,408 17,474 19,433 43,234 41,088
----------- ------------ --------- --------- --------- ---------
NET ASSETS:
BEGINNING OF PERIOD....................... 1,971,330 1,764,922 100,691 81,258 131,780 90,692
----------- ------------ --------- --------- --------- ---------
END OF PERIOD............................. $ 1,978,982 $ 1,971,330 $ 118,165 $ 100,691 $ 175,014 $ 131,780
=========== ============ ========= ========= ========= =========
- ---------------------------------------------------------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS:
- ---------------------------------------------------------------------------------------------------------------------------------
RATIOS:
Expenses to average net assets
(annualized)*........................... 0.17% 0.16% 0.20% 0.18% 0.19% 0.19%
Net investment income to average net
assets (annualized)*.................... 5.60% 5.52% 3.64% 3.59% 5.54% 5.32%
</TABLE>
- ---------------
* Operating results of the Municipal Money Market Portfolio excluded fees waived
by the Manager. Results prior to expenses waived were as follows:
<TABLE>
<CAPTION>
Year Ended
October 31, 1997
----------------
<S> <C>
Ratio of expenses to average net assets..................... 0.19%
Ratio of net investment income to average net assets........ 3.58%
</TABLE>
See accompanying notes
65
<PAGE> 67
AMR INVESTMENT SERVICES TRUST
NOTES TO FINANCIAL STATEMENTS
April 30, 1998 (Unaudited)
- --------------------------------------------------------------------------------
1. ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES
AMR Investment Services Trust (the "Trust") is registered under the
Investment Company Act of 1940, as amended, as a no-load, open-end management
investment company which was organized as a trust under the laws of the State of
New York pursuant to a Declaration of Trust dated as of June 27, 1995 and
amended on August 11, 1995. Beneficial interests in the Trust are divided into
separate series, each having distinct investment objectives and policies. These
financial statements relate to the AMR Investment Services Balanced Portfolio,
the AMR Investment Services Growth and Income Portfolio, the AMR Investment
Services Intermediate Bond Portfolio, the AMR Investment Services International
Equity Portfolio, the AMR Investment Services Short-Term Bond Portfolio, the AMR
Investment Services Money Market Portfolio, the AMR Investment Services
Municipal Money Market Portfolio and the AMR Investment Services U.S. Government
Money Market Portfolio (each a "Portfolio" and collectively the "Portfolios").
Prior to March 1, 1998, the AMR Investment Services Short-Term Bond Portfolio
was known as the AMR Investment Services Limited-Term Income Portfolio. The
assets of each Portfolio belong only to that Portfolio, and the liabilities of
each Portfolio are borne solely by that Portfolio and no other. The Trust
commenced active operations on November 1, 1995. The AMR Investment Services
Intermediate Bond Portfolio commenced active operations on March 2, 1998.
AMR Investment Services, Inc. (the "Manager") is a wholly-owned subsidiary
of AMR Corporation, the parent company of American Airlines, Inc. ("American"),
and was organized in 1986 to provide business management, advisory,
administrative and asset management consulting services.
The following is a summary of the significant accounting policies followed
by the Portfolios.
Security Valuation
Equity securities that are primarily traded on domestic securities
exchanges are valued at the last quoted sales price on a designated exchange
prior to the close of trading on the New York Stock Exchange (the "Exchange")
or, lacking any current sales, on the basis of the last current bid price prior
to the close of trading on the Exchange. Portfolio securities that are primarily
traded on foreign securities exchanges are generally valued at the preceding
closing values of such securities on their respective exchanges where primarily
traded. Over-the-counter equity securities are valued on the basis of the last
bid price on that date prior to the close of trading. Debt securities (other
than short-term securities) normally will be valued on the basis of prices
provided by a pricing service and may take into account appropriate factors such
as institution-size trading in similar groups of securities, yield, quality,
coupon rate, maturity, type of issue, trading characteristics and other market
data. In some cases, the prices of debt securities may be determined using
quotes obtained from brokers. Securities for which market quotations are not
readily available are valued at fair value, as determined in good faith and
pursuant to procedures approved by the Trust's Board of Trustees (the "Board").
Investment grade short-term obligations with 60 days or less to maturity and
securities of the Money Market, Municipal Money Market and U.S. Government Money
Market Portfolios (the "Money Market Portfolios") are valued using the amortized
cost method. In the event that a deviation of 1/2 of 1% or more exists between
the $1.00 per share price of the Money Market Portfolios, calculated at
amortized cost, and the price per share calculated by reference to market
quotations, or if there is any other deviation which the Board believes would
result in a material dilution to shareholders or purchasers, the Board will
promptly consider the appropriate action which should be initiated.
66
<PAGE> 68
AMR INVESTMENT SERVICES TRUST
NOTES TO FINANCIAL STATEMENTS -- CONTINUED
April 30, 1998 (Unaudited)
- --------------------------------------------------------------------------------
Security Transactions and Investment Income
Security transactions are recorded on the trade date of the security
purchase or sale. Dividend income is recorded on the ex-dividend date except
certain dividends from foreign securities which are recorded as soon as the
information is available to the Portfolios. Interest income is earned from
settlement date, recorded on the accrual basis, and adjusted, if necessary, for
amortization of premiums or accretion of discounts on investment grade
short-term securities and zero coupon instruments. For financial and tax
reporting purposes, realized gains and losses are determined on the basis of
specific lot identification.
Currency Translation
All assets and liabilities initially expressed in foreign currency values
are converted into U.S. dollar values at the bid price of such currencies
against U.S. dollars as last quoted by a recognized dealer. Income, expenses and
purchases and sales of investments are translated into U.S. dollars at the rate
of exchange prevailing on the respective dates of such transactions. The
Portfolios include that portion of the results of operations resulting from
changes in foreign exchange rates with net realized and unrealized gain on
investments, as appropriate.
Forward Foreign Currency Contracts
The International Equity Portfolio may enter into forward foreign currency
contracts to hedge the exchange rate risk on investment transactions or to hedge
the value of portfolio securities denominated in foreign currencies. Forward
foreign currency contracts are valued at the forward exchange rate prevailing on
the day of valuation.
Federal Income and Excise Taxes
The Portfolios will be treated as partnerships for federal income tax
purposes. As such, each investor in a Portfolio will be taxed on its share of
the Portfolio's ordinary income and capital gains. It is intended that each
Portfolio's assets will be managed in such a way that an investor in the
Portfolio will be able to satisfy the requirements of sub-chapter M of the
Internal Revenue Code.
Repurchase Agreements
Under the terms of a repurchase agreement, securities are acquired by a
Portfolio from a securities dealer or a bank which are subject to resale at a
later date. Repurchase agreements are fully collateralized by U.S. Treasury or
Government agency securities. All collateral is monitored daily by each
Portfolio so that the collateral's market value exceeds the carrying value of
the repurchase agreement.
Deferred Organization Expenses
Expenses incurred by a Portfolio in connection with its organization are
being amortized on a straight-line basis over a five-year period.
67
<PAGE> 69
AMR INVESTMENT SERVICES TRUST
NOTES TO FINANCIAL STATEMENTS -- CONTINUED
April 30, 1998 (Unaudited)
- --------------------------------------------------------------------------------
2. TRANSACTIONS WITH AFFILIATES
Management Agreement
The Trust and the Manager are parties to a Management Agreement which
obligates the Manager to provide or oversee the provision of all administrative,
investment advisory and portfolio management services. Investment assets of the
Balanced, Growth and Income, Intermediate Bond and International Equity
Portfolios ("Variable NAV Portfolios") are managed by multiple investment
advisers which have entered into separate investment advisory agreements with
the Manager. As compensation for performing the duties required under the
Management Agreement, the Manager receives from the Balanced Growth and Income
and International Equity Portfolios an annualized fee equal to .10% of the
average daily net assets plus amounts paid by the Manager to the investment
advisors hired by the Manager to direct investment activities of the Portfolios.
The manager receives an annualized fee of .25% of the average daily net assets
of the Intermediate Bond Portfolio and pays a portion of their fee to the
investment advisor hired by the Manager to direct investment activities of the
Portfolio. Management fees are paid as follows (dollars in thousands):
<TABLE>
<CAPTION>
Amounts paid to Net Amounts
Management Management Investment Retained by
Fee Rate Fee Advisors Manager
---------- ---------- --------------- -----------
<S> <C> <C> <C> <C>
Balanced Portfolio........................................ .225%-.70% $1,489 $1,009 $480
Growth and Income Portfolio............................... .225%-.70% 2,763 1,863 900
Intermediate Bond Portfolio............................... .25% 254 106 148
International Equity Portfolio............................ .25%-.90% 1,899 1,372 527
</TABLE>
The Manager serves as the sole investment adviser to the Short-Term Bond
Portfolio and each of the Money Market Portfolios. Pursuant to the Management
Agreement, the Manager receives from the Portfolios an annualized fee equal to
.25% of the average daily net assets of the Limited-Term Income Portfolio and
.15% of the average daily net assets of each of the Money Market Portfolios.
During the six months ended April 30, 1998, the Manager waived management fees
totaling $3,414 and $806 for the Municipal Money Market and U.S. Government
Money Market Portfolios.
Other
Certain officers or trustees of the Trust are also officers of the Manager
or American. The Trust makes no direct payments to its officers. Unaffiliated
trustees and their spouses are provided free unlimited air transportation on
American. However, the Trust compensates each Trustee with payments in an amount
equal to the Trustee's income tax on the value of this free airline travel. For
the six months ended April 30, 1998, the cost of air transportation was not
material to any of the Portfolios.
68
