UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number: 811-5075
The AAL Mutual Funds
(Exact name of registrant as specified in charter)
625 Fourth Avenue South
Minneapolis, Minnesota 55415
(Address of principal executive offices) (Zip code)
John C. Bjork, Assistant Secretary
625 Fourth Avenue South
Minneapolis, Minnesota 55415
(Name and address of agent for service)
Registrant's telephone number, including area code: (612) 340-7005
Date of fiscal year end: April 30
Date of reporting period: April 30, 2004
Item 1. Report to Stockholders
[GRAPHIC OMITTED: Thrivent Investment Management TM]
The AAL Mutual Funds
Annual Report
April 30, 2004
[GRAPHIC OMITTED: Magnifying Glass and Papers]
The following funds are expected to distribute capital gains as
detailed below. The information shown below is an estimate.
Ex-date 6/30/2004 to shareholders of record on 6/29/2004
Estimated Estimated
Fund Distribution Per Share
- ----------------------------------------------------------
AAL Small Cap Stock Fund $ 24,139,639 $0.9532
AAL Small Cap Index II Fund 1,238,480 0.3985
AAL Small Cap Value Fund 1,648,609 0.3336
AAL Mid Cap Index Fund 467,366 0.2044
AAL Bond Fund 493,715 0.0099
AAL Bond Index Fund 35,624 0.0088
AAL U.S. Target 2006 Fund 6,632 0.0526
Ex-date 7/14/2004 to shareholders of record on 7/13/2004
Estimated Estimated
Fund Distribution Per Share
- ----------------------------------------------------------
AAL Capital Growth Fund $498,760,597 $4.9349
The AAL Mutual Funds
Supplement to Prospectus dated June 27, 2003
The AAL Equity Income Fund
Matthew D. Finn, CFA, will serve as portfolio manager of The AAL
Equity Income Fund. Mr. Finn also serves as the portfolio manager of
the Lutheran Brotherhood Value Fund, a series of an affiliated mutual
fund group. Mr. Finn joined Thrivent Investment Mgt. from U.S. Bancorp
Asset Management, Inc. where he was managing director and senior
portfolio manager of the First American Large Cap Value Fund since
2003. Prior to that, he was head of equities for Advantus Capital
Management Inc. from July 2001 to May 2003, and chief investment
officer of the growth and income group for Evergreen Investment
Management Co. from March 1998 to June 2001. Mr. Finn joined Thrivent
Investment Mgt. in April of 2004.
The date of this Supplement is April 29, 2004.
Please include this Supplement with your Prospectus.
THE AAL MUTUAL FUNDS
Supplement to Prospectus dated June 27, 2003
Regarding
The AAL Balanced Fund
The first paragraph under the heading "Investment Strategy" for The
AAL Balanced Fund is replaced with the following sentence: "The Fund
invests in a combination of common stocks, bonds, and money market
instruments."
The information under the heading "Portfolio Management" for The AAL
Balanced Fund is replaced with the following sentence: "The AAL
Balanced Fund is managed by a team of investment professionals from
Thrivent Investment Management Inc., the Fund's investment adviser."
This date of this Supplement is May 28, 2004.
Please include this Supplement with your Prospectus.
Table of Contents
President's Letter 1
Economic and Market Review 2
Portfolio Perspectives
The AAL Technology Stock Fund 4
The AAL Aggressive Growth Fund 6
The AAL Small Cap Stock Fund 8
The AAL Small Cap Index Fund II 10
The AAL Small Cap Value Fund 12
The AAL Mid Cap Stock Fund 14
The AAL Mid Cap Index Fund 16
The AAL Mid Cap Index Fund II 18
The AAL International Fund 20
The AAL Capital Growth Fund 22
The AAL Large Company Index 24
The AAL Large Company Index Fund II 26
The AAL Equity Income Fund 28
The AAL Balanced Fund 30
The AAL High Yield Bond Fund 32
The AAL Municipal Bond Fund 34
The AAL Bond Fund 36
The AAL Bond Index Fund 38
The AAL Money Market Fund 40
Report of Independent Registered
Public Accounting Firm 42
Schedules of Investments
The AAL Technology Stock Fund 43
The AAL Aggressive Growth Fund 45
The AAL Small Cap Stock Fund 49
The AAL Small Cap Index Fund II 53
The AAL Small Cap Value Fund 62
The AAL Mid Cap Stock Fund 65
The AAL Mid Cap Index Fund 69
The AAL Mid Cap Index Fund II 75
The AAL International Fund 81
The AAL Capital Growth Fund 84
The AAL Large Company Index 87
The AAL Large Company Index Fund II 94
The AAL Equity Income Fund 101
The AAL Balanced Fund 104
The AAL High Yield Bond Fund 113
The AAL Municipal Bond Fund 121
The AAL Bond Fund 140
The AAL Bond Index Fund 145
The AAL Money Market Fund 152
Statement of Assets and Liabilities 156
Statement of Operations 160
Statement of Changes in Net Assets 164
Notes to Financial Statements 168
Financial Highlights
The AAL Technology Stock Fund 186
The AAL Aggressive Growth Fund 186
The AAL Small Cap Stock Fund 188
The AAL Small Cap Index Fund II 188
The AAL Small Cap Value Fund 190
The AAL Mid Cap Stock Fund 190
The AAL Mid Cap Index Fund 192
The AAL International Fund 192
The AAL Mid Cap Index Fund II 193
The AAL Capital Growth Fund 194
The AAL Large Company Index 194
The AAL Large Company Index Fund II 195
The AAL Equity Income Fund 196
The AAL Balanced Fund 196
The AAL High Yield Bond Fund 198
The AAL Municipal Bond Fund 198
The AAL Bond Fund 200
The AAL Bond Index Fund 200
The AAL Money Market Fund 202
Trustees and Officers of
The AAL Mutual Funds 204
Results of Special Shareholder Meeting 208
[PHOTO OMITTED: PAMELA J. MORET]
Dear Shareholder:
We are pleased to provide you with the annual report for the 12 months
ended April 30, 2004 for The AAL Mutual Funds, managed by Thrivent
Investment Management. In this report, you will find detailed
information about The AAL Mutual Funds, including summaries prepared
by each portfolio manager highlighting performance, market conditions
and management strategies during the twelve-month period. In addition,
Russell Swansen, Thrivent Investment Management's new chief investment
officer, reviews the larger economic environment in his Economic and
Market Overview.
Thrivent Investment Management Welcomes New Chief Investment Officer
The one-year period was a fruitful one for investors with the stock
market rebounding strongly from a prolonged bear market, and a
resurgent economy -- a welcome change from previous periods. Changes
in our asset management business have been occurring as well led by
the recent naming of Russell Swansen as our new chief investment
officer. We are tremendously excited about the opportunity to bring
Russell on board. His broad experience, talent and past successes will
greatly benefit our shareholders. Russell takes over for Jim Abitz who
retired at the end of 2003 after a career of over thirty years in
investment management and shareholder service. We salute Jim's
leadership, recognize his significant contributions and wish him well
in all his future endeavors while at the same time welcoming Russell
and his vision for our asset management capabilities on the road
ahead.
Building for the Future
Besides naming a new chief investment officer, Thrivent Investment
Management is busily gearing up for the fast-approaching merger of The
AAL Mutual Funds and The Lutheran Brotherhood Family of Funds into a
single Thrivent Mutual Funds. The Thrivent Mutual Funds will offer:
(bullet) more investment options
(bullet) greater asset class diversification potential
(bullet) a simplified shareholder self-service process
Within the Thrivent Mutual Funds, product improvements continue:
(bullet) Matthew Finn -- a new, experienced and successful large cap
value portfolio manager, recently joined the equities area this past
spring.
(bullet) Soon you will have access to an improved international stock
option that combines proven growth and value style managers into a
single unique fund offering.
These changes are designed with you -- the shareholder -- in mind,
enabling Thrivent Mutual Funds to serve ever more of your investment
needs.
Investing in Integrity
On a final note, the past year was marked by revelations of ethical
lapses and improper activities at a surprising number of asset
management companies. This has been disappointing and alarming for the
rest of us in the industry. As a part of a member-owned fraternal
benefit society, we've been in the integrity "business" for over a
century and have remained committed to earning the trust of one very
key group -- our investors. In fact, we are always looking for new
opportunities to further bolster the trust our shareholders put in us.
To this end, we have been among the industry leaders in recently
introducing leading-edge mutual fund board governance where seven of
eight directors are independent of Thrivent's management and dedicated
solely to our shareholders' best interests.
Thank you for continuing to turn to us for your financial solutions.
We very much value your business.
Sincerely,
/S/ PAMELA J. MORET
Pamela J. Moret
President
The AAL Mutual Funds
[PHOTO OMITTED: RUSSELL W. SWANSEN]
Russell W. Swansen April 30, 2004
Senior Vice President, and
Chief Investment Officer
Economic and Market Review
It was a productive period for market participants over the
twelve-month period ended April 30, 2004 as the nation's economy
continued to rebound strongly. Every major asset class registered
gains -- many of them substantial. Gains were greatest in the summer
and fall months of 2003 as anxiety recessed over the long prelude to
war with Iraq and the economy began an ascent to full power. The
nation's financial markets responded with a broad-based recovery led
by lower-priced, previously struggling technology companies.
High-quality bonds continued a pattern of strong performance over the
period but slipped into negative territory late as it became obvious
that higher interest rates were looming close on the horizon.
High-yield bonds posted tremendous gains but also slowed near the end
of the period over liquidity and interest rate concerns.
U.S. Economy
The nation's economic growth engine roared to life over the period
with solid year-over-year gross domestic product (GDP) increases
punctuated by an extraordinary 8.2% jump in the 3rd quarter of 2003.
Growth returned to a more sustainable 4% pace in the 4th quarter of
2003 followed by a 4.5% increase in the initial quarter of 2004 -- a
lynchpin of the continued recovery from 2001 lows. The improvement was
largely attributable to the combination of companies rebuilding
depleted inventories, high worker productivity rates and a marked
increase in capital spending and business investment. Of late,
businesses appear to have finally ramped up hiring as a sharp upturn
in corporate profitability and output growth have built better
confidence in sustained economic expansion going forward.
Inflation and Monetary Policy
The period witnessed only the slightest whiff of inflation but more
obvious signs have recently begun to surface in the form of a spike in
energy and commodity prices. Deflation fears, which were a concern at
the close of 2003, have diminished. Inflationary pressures are likely
to increase as business pricing power improves and low interest rates
remain in place. Attractive interest rates and cheap capital for
borrowing was a key story line throughout the reporting period but
interest rates will begin to rise as the economy has shown vast
improvement and the long missing job creation piece of the economic
puzzle appears close at hand. Fiscal and monetary policy in the form
of heavy government spending, tax cuts and a very low federal funds
borrowing rate continued to fuel the U.S. economy over the reporting
period.
Equity Performance
The 12-month period ended April 30, 2004 proved bountiful for equity
investors as stocks of all capitalization ranges and investment styles
turned in exceedingly strong performance. The rally, which began in
March of 2003 and continued for the majority of the period was
characterized by a decided "lower-quality" bias that favored the small
and out-of-favor firms over larger, better-established companies. In
2004, the market winds shifted to favor more conservative mid- and
large-cap stocks which had risen less in price over the 2003 updraft.
Technology stocks, the scourge of investors over the past several
years, bounced back as evidenced by the NASDAQ Composite's 31.73%
total return. Small company stocks, as measured by the Russell 2000
Index, led all asset classes with a 42.03% performance while mid-cap
stocks posted a 34.43% return based on the S&P MidCap 400 Index. A
global economic recovery and low priced equities overseas provided a
rewarding environment for international investors as well. Morgan
Stanley's EAFE Index -- a commonly used barometer for international
stocks-rose 40.75% over the one-year period. In looking at investment
style, value -- oriented stocks continued a pattern of outperforming
their more growth-focused cousins as many of the lower-priced,
oft-ignored issues rose precipitously in the low-quality rally.
Fixed Income Performance
A several year long stretch of high-quality bonds outperforming stocks
came to an end over the period as the threat of higher interest rates
and a much improved corporate profit environment made equity investing
attractive again. Corporate bonds, especially those below investment
grade, performed best amid a backdrop of low default rates and
improved credit access. High-yield bonds, as measured by the Lehman
High Yield Bond Index, produced a solid 15.00% return. Toward the end
of the period, gains slowed as the high-yield market appeared somewhat
extended in value and some institutional money was reallocated.
The specter of higher interest rates threatened the highest-quality
U.S. Treasury offerings and investors shied away, driving prices
lower. For the period, the Lehman Aggregate Index -- a proxy for the
high-quality U.S. fixed income market -- produced a tepid 1.82% total
return over the reporting period.
Outlook
The U.S. economy is on solid ground with the recovery of 2003
transitioning into job creation mode in the spring months of 2004.
High productivity, low interest rates, and an improving employment
climate point to continued economic growth in the 4-5% range
throughout the year. In short, the state of the economy is as sound as
it has been in years and is broad based. Every major sector, and most
industries, participated in the expansion over the past year. As the
stimulative effects of tax cuts and strong spending growth begin to
taper off, we expect job and personal income growth to accelerate and
keep the economy in a high gear.
With historically low interest rates on the rise, fixed-income
investors will likely see tempered returns. The greatest impact will
likely be on the longer-dated top-quality Treasury market, where
interest rate risk is the greatest. Bonds that offer attractive yield
spread over Treasuries, including corporate investment grade, high
yield, and some foreign bonds, may perform better over the next year
or two. That said, we believe the Federal Reserve will act
thoughtfully in the timing and pace of any future interest rate
increases in an attempt to moderate uncertainty for
market participants.
In our experience, the stock market, rarely, if ever, moves upward in
a steady way. The current "sideways market" shouldn't necessarily be
viewed negatively. In our opinion, such consolidation periods are a
healthy and necessary part of longer-term market rallies as they help
prepare for future gains and allow investors on the sideline to
reenter the market. This additional demand by investors was one reason
the stock market performed so well in the fall and winter months last
year. We expect more periodic pullbacks as investors reap profits and
periodic uncertainty in the geopolitical forum arises, but believe
that the market is well positioned for a rewarding remainder of 2004
and beyond.
The AAL Technology Stock Fund
[PHOTO OMITTED: BRIAN J. FLANAGAN]
[PHOTO OMITTED: JAMES A. GROSSMAN]
Brian J. Flanagan (left) and James A. Grossman (right), Portfolio
Co-Managers
The AAL Technology Stock Fund seeks long-term capital appreciation by
investing primarily in a diversified portfolio of common stocks and
securities convertible into common stocks.
Technology stocks provided solid returns for the 12-month period ended
April 30, 2004, with most of the gains occurring in 2003. For the
period, The AAL Technology Stock Fund posted a 28.00% total return,
compared to a median return of 29.37% for its Lipper Inc. peer group
of science and technology funds. The Fund's market benchmark, the
Goldman Sachs Technology Industry Composite Index, recorded a 30.73%
return during the period.
Strong Rebound After Long Slump
After a long slump, the U.S. stock market rebounded in 2003, fueled by
strong fiscal stimulus, low interest rates and rebounding corporate
profits. With the resurgence came a renewed investor appetite for
risk, which helped smaller-cap stocks outperform larger-cap issues
during much of the period. From January 2004 through April, however,
the stock market stumbled on worries about higher inflation and oil
prices, rising interest rates, the Iraq war, terrorism, and
uncertainty about the upcoming U.S. presidential election.
A main cause of the Fund's underperformance relative to its benchmark
was its approximately 5% allocation to cash investments, which did not
perform as well as stocks during the period. The cash is held mainly
for liquidity purposes. The index has no such need, and it
participated 100% in technology stocks' impressive gains. Another
reason the Fund lagged the benchmark was its bias toward
higher-quality, larger-cap stocks, which underperformed riskier,
smaller-cap issues during the first eight months of the period. Also,
the Fund's overweighting of semiconductor equipment makers and its
underweighting of semiconductor manufacturers and communications
equipment companies hurt performance relative to the benchmark.
[GRAPHIC OMITTED: TOP INDUSTRIES]
Top Industries
(% of Portfolio)
Information Technology 79.5%
Health Care 4.4%
Consumer Discretionary 3.7%
Communications Services 1.7%
Industrials 1.3%
Top 10 Holdings
(% of Portfolio)
Microsoft Corporation 7.1%
Dell, Inc. 4.7%
International Business Machines Corporation 4.5%
Cisco Systems, Inc. 4.3%
Intel Corporation 4.0%
Oracle Corporation 3.7%
QUALCOMM, Inc. 2.4%
eBay, Inc. 2.3%
Texas Instruments, Inc. 2.1%
Applied Materials, Inc. 1.7%
These common stocks represent 36.8% of the total investment portfolio.
Footnotes read:
Quoted Fund performance is for Class A shares and does not reflect a
sales charge.
The returns shown do not reflect taxes a shareholder would pay on
distributions or redemptions.
Quoted Top Industries, Portfolio Composition and Top 10 Holdings are
subject to change.
The list of Top 10 Holdings excludes short term investments and
collateral held for securities loaned.
Conversely, the Fund's performance benefited from its overweighting of
computer hardware stocks, including Apple Computer. Also, an
overweighting of systems software and Internet software and services
stocks boosted the Fund's relative performance. Though positive, these
investments did not compensate for the Fund's underperformance
relative to its benchmark.
Outlook
Looking forward, we expect technology stocks to deliver modest
positive returns for the remainder of 2004 -- driven by corporations'
slow, steady spending on information technology. For this to occur,
however, corporate earnings estimates will have to remain reassuring.
There likely will be plenty of market volatility as well, as investors
fret about inflation and rising interest rates, the Iraq situation,
terrorism, and election uncertainty.
We believe that any differences in valuations between smaller- and
larger-cap stocks have narrowed -- and thus we are positioning the
Fund more toward mid- and small-cap issues. After the market's
shake-up earlier this year, we are starting to find some values in
small- and mid-cap names, and we're selectively adding stocks,
especially in the semiconductor area.
Portfolio Facts
As of April 30, 2004
A Share B Share Institutional Share
------------------ ------------------ -------------------
Ticker AATSX BBTSX N/A
Transfer Agent ID 028 078 098
Net Assets $41,467,955 $3,889,912 $2,882,076
NAV $3.20 $3.09 $3.32
NAV -- High+ 1/20/2004 -- $3.75 1/20/2004 -- $3.63 1/20/2004 -- $3.88
NAV -- Low+ 5/1/2003 -- $2.52 5/1/2003 -- $2.44 5/1/2003 -- $2.60
Number of Holdings: 112 + For the year ended April 30, 2004
[GRAPHIC WORM CHART OMITTED: VALUE OF A $10,000 INVESTMENT]
Value of a $10,000 Investment
Class A Shares*/1/
Goldman Sachs
Technology
The AAL Industry Consumer
Technology Composite Price
Date Stock Fund Index*** Index**
- ------------------------------------------------------------------------
July 1, 2000 9,450 10,000 10,000
2000 9,148 9,440 10,017
2000 10,792 10,668 10,029
2000 9,497 8,940 10,081
2000 8,410 8,265 10,099
2000 6,048 6,372 10,104
2000 5,963 5,826 10,099
2001 6,653 6,782 10,163
2001 4,697 4,902 10,203
2001 3,922 4,221 10,226
2001 4,848 5,027 10,267
2001 4,630 4,827 10,313
2001 4,678 4,840 10,331
2001 4,215 4,495 10,302
2001 3,648 3,910 10,302
2001 2,835 3,119 10,348
2001 3,279 3,620 10,313
2001 3,789 4,237 10,296
2001 3,752 4,163 10,255
2002 3,686 4,158 10,279
2002 3,147 3,603 10,319
2002 3,383 3,859 10,377
2002 2,977 3,386 10,435
2002 2,816 3,248 10,435
2002 2,419 2,789 10,441
2002 2,174 2,507 10,453
2002 2,117 2,474 10,488
2002 1,767 2,033 10,505
2002 2,126 2,477 10,531
2002 2,504 2,911 10,531
2002 2,136 2,486 10,508
2003 2,136 2,464 10,554
2003 2,174 2,502 10,636
2003 2,145 2,474 10,700
2003 2,363 2,732 10,676
2003 2,608 3,037 10,659
2003 2,618 3,029 10,671
2003 2,769 3,203 10,682
2003 2,920 3,424 10,723
2003 2,844 3,374 10,758
2003 3,119 3,704 10,746
2003 3,166 3,775 10,717
2003 3,241 3,834 10,705
2004 3,364 4,014 10,758
2004 3,317 3,900 10,816
2004 3,232 3,792 10,885
April 30, 2004 $3,024 $3,571 $10,920
Average Annual Total Returns/1/
As of April 30, 2004
From
Inception
Class A/2/ 1-Year 7/1/2000
- ----------------------------------------------------------------
without sales charge 28.00% (25.75)%
with sales charge 20.75% (26.83)%
From
Inception
Class B/2/ 1-Year 7/1/2000
- ----------------------------------------------------------------
without sales charge 27.16% (26.42)%
with sales charge 23.16% (26.81)%
From
Inception
Institutional Class/3/ 1-Year 7/1/2000
- ----------------------------------------------------------------
Net Asset Value 28.19% (25.03)%
Footnotes read:
* As you compare performance, please note that the Fund's
performance reflects the maximum 5.5% sales charge,
while the Consumer Price Index and Goldman Sachs
Technology Industry Composite Index do not reflect any
such charges. If you were to purchase any of the above
individual stocks or funds represented in these
Indexes, any charges you would pay would reduce your
total return as well.
** The Consumer Price Index is an inflationary indicator that
measures the change in the cost of a fixed basket of
products and services, including housing, electricity,
food and transportation. It is not possible to invest
directly in the Index.
*** The Goldman Sachs Technology Industry Composite Index is a
modified capitalization-weighted index of selected
technology stocks. It is not possible to invest
directly in the Index. The performance of the Index
does not reflect deductions for fees, expenses or
taxes.
/1/ Past performance is not an indication of future results.
Annualized total returns represent past performance and
reflect changes in share prices, the reinvestment of
all dividends and capital gains, and the effects of
compounding. Investment return and principal value will
fluctuate, and shares, when redeemed, may be worth more
or less than their original cost. Current performance
may be lower or higher than the performance data
quoted. Call 800-THRIVENT or visit www.thrivent.com for
more current performance results. The Fund primarily
invests in technology-related industries; as a
consequence, the Fund may be subject to greater price
volatility than a fund investing in a broad range of
industries. At various times, the Fund's adviser waived
its management fee and/or reimbursed Fund expenses. Had
the adviser not done so, the Fund's total returns would
have been lower. The returns shown do not reflect taxes
a shareholder would pay on distributions or
redemptions. The prospectus contains more complete
information on the objectives, risks, charges and
expenses of the investment company which investors
should read and consider carefully before investing.
Please read your prospectus carefully.
/2/ Class A performance has been restated to reflect the maximum
sales charge of 5.5%. Class B performance reflects the
maximum contingent deferred sales charge (CDSC) of 5%,
declining 1% each year during the first five years and
then converting to Class A shares after the fifth year.
/3/ Institutional Class shares have no sales load and are for
institutional shareholders only.
The AAL Aggressive Growth Fund
[PHOTO OMITTED: SCOTT A. VERGIN]
Scott A. Vergin, Portfolio Manager
The AAL Aggressive Growth Fund seeks long-term capital appreciation by
investing primarily in a diversified portfolio of common stocks and
securities convertible into common stocks.
Driven by strong performance through the conclusion of 2003,
large-company growth investors realized impressive returns for the
12-month period ended April 30, 2004. During the period, The AAL
Aggressive Growth Fund produced an 18.13% return. The Fund slightly
outperformed its Lipper Inc. peer group of similar large-cap growth
funds, which had a 17.94% median return. The Fund's market benchmark,
the Russell 1000 Growth Index, returned 21.65%.
Two Distinct Markets
The 12-month period was characterized by two very different markets.
The first, which roughly included the final three quarters of 2003,
produced most of the gains during the period. During this time, the
markets paid up for companies that stood to benefit most significantly
from an improved economy. Industrials and technology stocks were just
two of the sectors that benefited from this outlook. While an
overweighted tilt to information technology holdings helped the Fund
outperform its peer group, less exposure to the more defensive
consumer staples sector caused a degree of underperformance versus the
market benchmark.
Early last year we moved to take full advantage of these conditions
and took an overweight position in technology and industrials. This
accounted for a significant portion of the Fund's outperformance
versus its peers during the period.
January, however, ushered in a distinctly different market as
trepidation related to interest rates, terrorism and the presidential
election brought the gains of 2003 to a halt. During this time, the
markets essentially reverted and produced only minimal gains.
[GRAPHIC OMITTED: TOP INDUSTRIES]
Top Industries
(% of Portfolio)
Information Technology 28.3%
Health Care 19.2%
Consumer Discretionary 16.3%
Financials 10.7%
Industrials 9.0%
Consumer Staples 7.7%
Energy 2.6%
Communications Services 0.9%
Miscellaneous 0.6%
Materials 0.5%
Top 10 Holdings
(% of Portfolio)
Pfizer, Inc. 3.6%
Microsoft Corporation 3.2%
General Electric Company 2.7%
Cisco Systems, Inc. 2.6%
Intel Corporation 2.3%
Dell, Inc. 1.8%
Citigroup, Inc. 1.7%
Amgen, Inc. 1.6%
Wal-Mart Stores, Inc. 1.6%
Johnson & Johnson 1.5%
These common stocks represent 22.6% of the total investment portfolio.
Footnotes read:
Quoted Fund performance is for Class A shares and does not reflect a
sales charge.
The returns shown do not reflect taxes a shareholder would pay on
distributions or redemptions.
Quoted Top Industries, Portfolio Composition and Top 10 Holdings are
subject to change.
The list of Top 10 Holdings excludes short term investments and
collateral held for securities loaned.
Outlook
A market characterized by significant concerns about interest rates --
as we are currently experiencing -- is typically a stock picker's
market. In this environment, sector allocations take a back seat in
importance to identifying the correct individual stocks. Therefore, we
have shifted to a more neutral sector weighting and have reduced our
overweighting in the industrials and technology sectors.
Looking ahead, the biggest fear for investors remains interest rates
- -- could a rise in rates severely dampen the growth of the market?
Because of these fears, it's unlikely that the first half of 2004 will
produce sustainable gains. However, we believe the market will rebound
somewhat in the second half of the year as the realization that the
uncertainty about interest rates was far worse than the actual rise of
rates.
The Federal Reserve Board clearly does not wish to choke off the
economy and, therefore, we believe a rise in rates will be very
measured. Once that has been established, the market can regain its
footing and make a sustained upward move. Until then, we will likely
see a rotational, choppy market. In such a market, we will continue to
identify those companies that we believe have an edge through a new
product and can show growth regardless of the interest rate cycle or
economic cycle.
Portfolio Facts
As of April 30, 2004
A Share B Share Institutional Share
------------------ ------------------ -------------------
Ticker AAAGX BBAGX N/A
Transfer Agent ID 027 077 060
Net Assets $38,586,931 $4,000,873 $3,414,927
NAV $4.43 $4.25 $4.64
NAV -- High+ 1/26/2004 -- $4.73 1/26/2004 -- $4.55 1/26/2004 -- $4.95
NAV -- Low+ 5/1/2003 -- $3.75 5/1/2003 -- $3.63 5/1/2003 -- $3.88
Number of Holdings: 216 + For the year ended April 30, 2004
[GRAPHIC WORM CHART OMITTED: VALUE OF A $10,000 INVESTMENT]
Value of a $10,000 Investment
Class A Shares*/1/
The AAL Consumer Russell 1000
Aggressive Price Growth
Date Growth Fund Index** Index***
- ---------------------------------------------------------------
July 1, 2000 9,450 10,000 10,000
2000 9,063 10,017 9,541
2000 9,582 10,029 10,405
2000 9,072 10,081 9,421
2000 8,666 10,099 8,975
2000 7,324 10,104 7,652
2000 7,295 10,099 7,410
2001 7,626 10,163 7,922
2001 6,199 10,203 6,577
2001 5,557 10,226 5,861
2001 6,331 10,267 6,603
2001 6,152 10,313 6,506
2001 5,906 10,331 6,355
2001 5,604 10,302 6,196
2001 5,018 10,302 5,689
2001 4,508 10,348 5,121
2001 4,564 10,313 5,390
2001 4,857 10,296 5,908
2001 4,933 10,255 5,897
2002 4,772 10,279 5,793
2002 4,460 10,319 5,552
2002 4,659 10,377 5,744
2002 4,281 10,435 5,275
2002 4,196 10,435 5,148
2002 3,752 10,441 4,672
2002 3,430 10,453 4,415
2002 3,449 10,488 4,428
2002 3,194 10,505 3,969
2002 3,459 10,531 4,333
2002 3,638 10,531 4,568
2002 3,345 10,508 4,253
2003 3,270 10,554 4,149
2003 3,241 10,636 4,130
2003 3,298 10,700 4,207
2003 3,544 10,676 4,518
2003 3,723 10,659 4,744
2003 3,752 10,671 4,809
2003 3,856 10,682 4,929
2003 3,950 10,723 5,051
2003 3,874 10,758 4,997
2003 4,111 10,746 5,278
2003 4,139 10,717 5,333
2003 4,262 10,705 5,518
2004 4,347 10,758 5,630
2004 4,366 10,816 5,666
2004 4,309 10,885 5,561
April 30, 2004 $4,186 $10,920 $5,496
Average Annual Total Returns/1/
As of April 30, 2004
From
Inception
Class A/2/ 1-Year 7/1/2000
- ----------------------------------------------------------------
without sales charge 18.13% (19.16)%
with sales charge 11.59% (20.34)%
From
Inception
Class B/2/ 1-Year 7/1/2000
- ----------------------------------------------------------------
without sales charge 17.08% (20.03)%
with sales charge 13.08% (20.45)%
From
Inception
Institutional Class/3/ 1-Year 7/1/2000
- ----------------------------------------------------------------
Net Asset Value 19.59% (18.18)%
Footnotes read:
* As you compare performance, please note that the Fund's
performance reflects the maximum 5.5% sales charge,
while the Consumer Price Index, and the Russell 1000
Growth Index do not reflect any such charges. If you
were to purchase any of the above individual stocks or
funds represented in these Indexes, any charges you
would pay would reduce your total return as well.
** The Consumer Price Index is an inflationary indicator that
measures the change in the cost of a fixed basket of
products and services, including housing, electricity,
food and transportation. It is not possible to invest
directly in the Index.
*** The Russell 1000 Growth Index is an index comprised of those
Russell 1000 Index companies with higher than average
price-to-book ratios and higher forecasted growth
values. It is not possible to invest directly in these
Indexes. The performance of these Indexes does not
reflect deductions for fees, expenses or taxes.
/1/ Past performance is not an indication of future results.
Annualized total returns represent past performance and
reflect changes in share prices, the reinvestment of
all dividends and capital gains, and the effects of
compounding. Investment return and principal value will
fluctuate, and shares, when redeemed, may be worth more
or less than their original cost. Current performance
may be lower or higher than the performance data
quoted. Call 800-THRIVENT or visit www.thrivent.com for
more current performance results. At various times, the
Fund's adviser waived its management fee and/or
reimbursed Fund expenses. Had the adviser not done so,
the Fund's total returns would have been lower. The
returns shown do not reflect taxes a shareholder would
pay on distributions or redemptions. The prospectus
contains more complete information on the objectives,
risks, charges and expenses of the investment company
which investors should read and consider carefully
before investing. Please read your prospectus
carefully.
/2/ Class A performance has been restated to reflect the maximum sales
charge of 5.5%. Class B performance reflects the
maximum contingent deferred sales charge (CDSC) of 5%,
declining 1% each year during the first five years and
then converting to Class A shares after the fifth year.
/3/ Institutional Class shares have no sales load and are for
institutional shareholders only.
The AAL Small Cap Stock Fund
[PHOTO OMITTED: CHRISTOPHER J. SERRA]
Christopher J. Serra, Portfolio Manager
The AAL Small Cap Stock Fund seeks long-term capital growth by
investing primarily in small company common stocks and
securities convertible into small company common stocks.
Driven by evidence of a sustainable economic recovery, small-cap
stocks enjoyed robust returns during the 12-month period ended April
30, 2004. During the period, the AAL Small Cap Stock Fund produced a
41.90% return, outperforming the 39.78% median return of its Lipper
Inc. peer group of similar small-cap core funds. The Fund's previous
market benchmark, the S&P Small Cap 600 Index, returned 39.94%, while
the Fund's current benchmark, the Russell 2000 Index, returned 42.03%.
Because the Russell 2000 Index is a more accurate reflection of the
companies in which the Fund invests, it will be used to compare
performance of the Fund, rather than the S&P SmallCap 600 Index.
Increased Liquidity Fuels Growth
Returns during the period were broad-based and strong across all
sectors. Particularly during the first half of the period, low-quality
stocks appreciated significantly, as five- and 10-fold increases were
not uncommon on news of continued economic growth.
The positive performance of small-cap and low-quality stocks continued
into early 2004 as increased small-cap liquidity -- a common January
ritual -- propelled continued growth in the space. While
low-quality, small-cap names continued to produce positive returns
through the remainder of the period, they cooled considerably as the
markets essentially reversed midway through the first quarter of the
year.
The influx of money to the small-cap space helped move the market
beyond a situation where nearly all stocks, regardless of
fundamentals, realized steady growth. By the end of the period, the
market was marked by a return to prominence of traditional market
factors such as valuations. In this period, where appreciation was
earned based on actual earnings and cash flow, higher quality names
saw the largest relative gain.
Consistent with our investment strategy, we do not make substantial
sector, style or market bets. Instead, we rely on our ability to
research and acquire stocks of solid companies with strong valuations.
Our health care stocks, along with consumer space and basic building
materials, provided great contributions throughout the period. The
Fund's more cautious stance in lower-quality, yet high-performing
energy and technology stocks, were the only noteworthy areas of
underperformance and the underlying cause for the Fund's
underperformance versus the Russell 2000 Index.
[GRAPHIC OMITTED: TOP INDUSTRIES]
Top Industries
(% of Portfolio)
Consumer Discretionary 15.5%
Industrials 14.6%
Information Technology 13.9%
Financials 13.5%
Health Care 11.0%
Energy 5.7%
Materials 3.5%
Consumer Staples 2.3%
Utilities 1.2%
Top 10 Holdings
(% of Portfolio)
United Surgical Partners International, Inc. 0.9%
Radio One, Inc. 0.8%
IDEX Corporation 0.8%
MSC Industrial Direct Company, Inc. 0.7%
MacDermid, Inc. 0.7%
Global Payments, Inc. 0.7%
Casey's General Stores, Inc. 0.6%
Investors Financial Services Corporation 0.6%
Affiliated Managers Group, Inc. 0.6%
SCP Pool Corporation 0.6%
These common stocks represent 7.0% of the total investment portfolio.
Footnotes read:
Quoted Fund performance is for Class A shares and does not reflect a
sales charge.
The returns shown do not reflect taxes a shareholder would pay on
distributions or redemptions.
Quoted Top Industries, Portfolio Composition and Top 10 Holdings are
subject to change.
The list of Top 10 Holdings excludes short term investments and
collateral held for securities loaned.
Outlook
The economy continues to exhibit signs of a sustainable recovery while
corporate earnings show no immediate signs of halting. At the same
time, we believe that earnings expectations for 2004 and 2005 may be
conservative. Many observers appear to have underestimated the amount
of restructuring that has been done in the last three years. There is
abundant operating leverage at the business level as productivity and
efficiency are at all-time highs. In addition, many companies are now
realizing the benefits of the numerous IT investments made during the
1990s.
Balancing out this optimistic outlook, however, are some significant
areas of concern. Energy prices, for one, have the ability to put an
effective damper on growth. Chinese commodity prices could also nick
fragile margins or, in an even more troublesome scenario, they could
show through in price increases and inflation. Interest rates, which
many acknowledge will be rising, will be a factor. We have concerns
that the Federal Reserve Board may be behind the curve and that
inflation is, indeed, brewing faster than anticipated.
In light of these contradictory factors playing on the market, our
plan is to remain true to our investment strategy, which has served
the Fund's investors well. We will maintain a diversified portfolio of
small-cap stocks and attempt to uncover high-quality companies with
improving fundamentals, high returns on capital and fair valuations.
As per our strategy, we do not anticipate large sector bets. Having
flourished during the low-quality rally in 2003, we are confident that
our higher-quality bias will not have a strong negative effect on
returns going forward.
Portfolio Facts
As of April 30, 2004
A Share B Share Institutional Share
------------------ ------------------ -------------------
Ticker AASMX BBSMX N/A
Transfer Agent ID 024 074 094
Net Assets $379,451,154 $25,342,606 $11,012,775
NAV $16.39 $15.26 $17.12
NAV -- High+ 4/5/2004 -- $17.36 4/5/2004 -- $16.18 4/5/2004 -- $18.12
NAV -- Low+ 5/1/2003 -- $11.54 5/1/2003 -- $10.85 5/1/2003 -- $11.97
Number of Holdings: 208 + For the year ended April 30, 2004
[GRAPHIC WORM CHART OMITTED: VALUE OF A $10,000 INVESTMENT]
Value of a $10,000 Investment
Class A Shares*/1/
The AAL Russell Consumer
Small Cap S&P SmallCap 2000 Price
Date Stock Fund 600 Index** Index*** Index****
- -------------------------------------------------------------------------
July 1, 1996 9,450 10,000 10,000 10,000
1996 9,025 9,242 9,100 10,019
1996 10,159 9,812 9,628 10,038
1996 10,622 10,243 10,005 10,070
1996 10,282 10,172 9,851 10,102
1996 10,518 10,700 10,257 10,121
1996 10,840 10,826 10,525 10,121
1997 10,878 11,006 10,736 10,153
1997 10,404 10,778 10,476 10,185
1997 9,736 10,225 9,981 10,211
1997 9,523 10,350 10,009 10,223
1997 10,975 11,566 11,122 10,217
1997 11,730 12,077 11,600 10,230
1997 12,262 12,836 12,139 10,243
1997 12,640 13,159 12,417 10,262
1997 13,578 14,029 13,326 10,287
1997 13,027 13,424 12,741 10,313
1997 12,901 13,326 12,658 10,306
1997 12,666 13,595 12,880 10,294
1998 12,453 13,330 12,676 10,313
1998 13,491 14,544 13,613 10,332
1998 13,929 15,099 14,174 10,351
1998 14,092 15,188 14,252 10,370
1998 13,013 14,384 13,484 10,389
1998 13,033 14,427 13,512 10,402
1998 12,290 13,323 12,417 10,415
1998 9,500 10,751 10,006 10,428
1998 10,253 11,410 10,789 10,440
1998 10,783 11,940 11,230 10,466
1998 11,597 12,612 11,818 10,466
1998 12,351 13,418 12,550 10,459
1999 12,425 13,249 12,716 10,485
1999 11,177 12,055 11,686 10,498
1999 10,967 12,211 11,869 10,530
1999 11,418 13,017 12,932 10,606
1999 11,649 13,334 13,121 10,606
1999 12,121 14,093 13,714 10,606
1999 12,299 13,969 13,338 10,638
1999 11,733 13,354 12,845 10,664
1999 11,733 13,411 12,847 10,715
1999 11,670 13,377 12,900 10,734
1999 12,550 13,936 13,670 10,740
1999 13,976 15,082 15,218 10,740
2000 13,379 14,615 14,973 10,766
2000 15,444 16,572 17,445 10,830
2000 15,633 15,959 16,295 10,919
2000 15,308 15,686 15,314 10,925
2000 15,203 15,221 14,421 10,932
2000 16,283 16,121 15,679 10,996
2000 15,360 15,725 15,174 11,015
2000 17,038 17,119 16,332 11,027
2000 17,028 16,653 15,852 11,085
2000 16,640 16,757 15,145 11,104
2000 14,805 15,012 13,589 11,110
2000 16,472 16,862 14,757 11,104
2001 17,458 17,585 15,525 11,174
2001 16,288 16,512 14,507 11,219
2001 15,253 15,754 13,797 11,244
2001 16,497 16,955 14,876 11,289
2001 17,002 17,279 15,242 11,340
2001 17,517 17,913 15,768 11,359
2001 17,244 17,613 14,915 11,327
2001 16,810 17,212 14,433 11,327
2001 14,630 14,885 12,491 11,378
2001 15,745 15,679 13,221 11,340
2001 16,810 16,826 14,245 11,321
2001 17,963 17,964 15,124 11,276
2002 17,913 18,121 14,966 11,302
2002 17,232 17,809 14,556 11,347
2002 18,396 19,216 15,727 11,410
2002 18,359 19,759 15,870 11,474
2002 17,777 18,941 15,165 11,474
2002 16,637 17,962 14,413 11,481
2002 14,407 15,425 12,237 11,493
2002 14,444 15,571 12,206 11,532
2002 13,453 14,618 11,330 11,551
2002 13,837 15,085 11,693 11,580
2002 14,841 15,871 12,736 11,580
2002 14,060 15,336 12,029 11,554
2003 13,689 14,809 11,697 11,605
2003 13,342 14,335 11,344 11,695
2003 13,255 14,447 11,490 11,765
2003 14,308 15,620 12,578 11,739
2003 15,559 16,878 13,927 11,720
2003 15,906 17,317 14,181 11,733
2003 16,724 18,217 15,067 11,746
2003 17,752 19,103 15,758 11,790
2003 17,083 18,542 15,468 11,829
2003 18,483 20,149 16,766 11,816
2003 19,201 20,912 17,361 11,784
2003 19,709 21,282 17,715 11,771
2004 20,378 21,894 18,486 11,829
2004 20,849 22,315 18,651 11,893
2004 20,923 22,608 18,825 11,969
April 30, 2004 $20,304 $21,859 $17,865 $12,008
Average Annual Total Returns/1/
As of April 30, 2004
From
Inception
Class A/2/ 1-Year 5-Year 7/1/1996
- ----------------------------------------------------------------
without sales charge 41.90% 12.20% 10.25%
with sales charge 34.12% 10.95% 9.46%
From
Inception
Class B/2/ 1-Year 5-Year 1/8/1997
- ----------------------------------------------------------------
without sales charge 40.52% 11.07% 8.27%
with sales charge 36.52% 11.07% 8.27%
From
Inception
Institutional Class/3/ 1-Year 5-Year 12/29/1997
- ----------------------------------------------------------------
Net Asset Value 42.90% 12.99% 8.98%
* As you compare performance, please note that the Fund's
performance reflects the maximum 5.5% sales charge,
while the S&P SmallCap 600 Index, the Russell 2000
Index and the Consumer Price Index do not reflect any
such charges. If you were to purchase any of the above
individual stocks or funds represented in these
Indexes, any charges you would pay would reduce your
total return as well.
** The S&P SmallCap 600 Index is an index that represents the
average performance of a group of 600 small
capitalization stocks. It is not possible to invest
directly in the Index. The performance of the Index
does not reflect deductions for fees, expenses or
taxes.
*** The Russell 2000 Index is an index comprised of the 2,000 smaller
companies in the Russell 3000 index. It is not possible
to invest directly in these Indexes. The performance of
these Indexes does not reflect deductions for fees,
expenses or taxes. The composition of the Russell 2000
Index serves as a better reflection of the Fund's
current investment strategy than does the S&P SmallCap
600 Index.
**** The Consumer Price Index is an inflationary indicator that
measures the change in the cost of a fixed basket of
products and services, including housing, electricity,
food and transportation. It is not possible to invest
directly in the Index.
/1/ Past performance is not an indication of future results.
Annualized total returns represent past performance and
reflect changes in share prices, the reinvestment of
all dividends and capital gains, and the effects of
compounding. Investment return and principal value will
fluctuate, and shares, when redeemed, may be worth more
or less than their original cost. Current performance
may be lower or higher than the performance data
quoted. Call 800-THRIVENT or visit www.thrivent.com for
more current performance results. At various times, the
Fund's adviser waived its management fee and/or
reimbursed Fund expenses. Had the adviser not done so,
the Fund's total returns would have been lower. The
returns shown do not reflect taxes a shareholder would
pay on distributions or redemptions. The prospectus
contains more complete information on the objectives,
risks, charges and expenses of the investment company
which investors should read and consider carefully
before investing. Please read your prospectus
carefully.
/2/ Class A performance has been restated to reflect the maximum
sales charge of 5.5%. Class B performance reflects the
maximum contingent deferred sales charge (CDSC) of 5%,
declining 1% each year during the first five years and
then converting to Class A shares after the fifth year.
/3/ Institutional Class shares have no sales load and are for
institutional shareholders only.
The AAL Small Cap Index Fund II
[PHOTO OMITTED: KEVIN R. BRIMMER]
Kevin R. Brimmer, Portfolio Manager
The AAL Small Cap Index Fund II seeks capital growth that tracks the
performance of the S&P Small Cap 600 Index by investing primarily in
common stocks of the Index.
Strong Performance in 2003
The AAL Small Cap Index Fund II returned 38.37% for the 12-month
period ended April 30, 2004, versus a return of 39.94% for the
SmallCap 600 Index. The Fund's Lipper Inc. peer group of similar
small-cap core funds posted a median return of 39.78% for the period.
The difference in performance between the Fund and the benchmark was
primarily a result of expenses charged to the Fund that do not apply
to the unmanaged index.
A Strong Period For Small-Cap Stocks
The Fund's share price trended upward over the past 12 months, with
the exception of September and April. The September decline was
closely followed by another strong period in stocks from October
through March, with a decline in April to close the period. Stocks in
every economic sector showed positive returns for the period, with the
exception of telecommunications services. Consumer discretionary and
industrials stocks led the way with gains of over 47% and 38%,
respectively.
The AAL Small Cap Index Fund II, as an index portfolio, is managed
with a passive approach, meaning there is no active stock selection
process. The Fund's objective is to replicate the performance of the
S&P SmallCap 600 Index to provide broad exposure to
small-capitalization stocks across various economic sectors. This is
done by purchasing all 600 securities in the index to mirror the
composition of the index as closely as possible, while at the same
time trying to keep transaction costs at a minimum. Generally,
variances in performance relative to the index are a function of fund
expenses, transaction costs, and minor differences in portfolio
composition relative to that of the index. All of these variables will
have less of an impact on performance as the Fund grows in size.
[GRAPHIC OMITTED: TOP INDUSTRIES]
Top Industries
(% of Portfolio)
Industrials 14.8%
Consumer Discretionary 13.9%
Information Technology 12.3%
Financials 10.7%
Health Care 10.6%
Energy 4.8%
Materials 4.1%
Utilities 3.0%
Consumer Staples 2.6%
Communications Services 0.3%
Top 10 Holdings
(% of Portfolio)
NVR, Inc. 0.5%
NBTY, Inc. 0.4%
Medicis Pharmaceutical Corporation 0.4%
Renal Care Group, Inc. 0.4%
Tom Brown, Inc. 0.4%
MGI PHARMA, Inc. 0.4%
IDEXX Laboratories, Inc. 0.4%
Inamed Corporation 0.4%
M.D.C. Holdings, Inc. 0.3%
Timken Company 0.3%
These common stocks represent 3.9% of the total investment portfolio.
Footnotes read:
Quoted Fund performance is for Class A shares and does not reflect a
sales charge.
The returns shown do not reflect taxes a shareholder would pay on
distributions or redemptions.
Quoted Top Industries, Portfolio Composition and Top 10 Holdings are
subject to change.
The list of Top 10 Holdings excludes short term investments and
collateral held for securities loaned.
Outlook
Our near-term outlook for U.S. stocks remains positive. Economic
growth and corporate profits appear strong, hiring is picking up, and
consumer and business spending is brisk. As the economy heats up,
however, inflation may resurge, prompting the Federal Reserve to push
up interest rates. Higher interest rates are an expense for businesses
and consumers that could brake economic growth, cut into profits, and
slow stock price gains.
Portfolio Facts
As of April 30, 2004
A Share B Share
------------------ ------------------
Ticker AALSX N/A
Transfer Agent ID 029 079
Net Assets $34,397,204 $4,420,352
NAV $12.26 $11.87
NAV -- High+ 4/5/2004 -- $13.01 4/5/2004 -- $12.61
NAV -- Low+ 5/1/2003 -- $8.89 5/1/2003 -- $8.68
Number of Holdings: 601 + For the year ended April 30, 2004
[GRAPHIC WORM CHART OMITTED: VALUE OF A $10,000 INVESTMENT]
Value of a $10,000 Investment
Class A Shares*/1/
The AAL Consumer
Small Cap S&P SmallCap Price
Date Index Fund II 600 Index*** Index**
- ------------------------------------------------------------------------
July 1, 2000 9,450 10,000 10,000
2000 9,063 9,637 10,017
2000 9,856 10,491 10,029
2000 9,573 10,206 10,081
2000 9,620 10,269 10,099
2000 8,609 9,200 10,104
2000 9,633 10,334 10,099
2001 9,996 10,777 10,163
2001 9,365 10,119 10,203
2001 8,926 9,655 10,226
2001 9,585 10,391 10,267
2001 9,748 10,590 10,313
2001 10,084 10,978 10,331
2001 9,901 10,794 10,302
2001 9,671 10,548 10,302
2001 8,373 9,122 10,348
2001 8,796 9,609 10,313
2001 9,411 10,312 10,296
2001 10,036 11,009 10,255
2002 10,103 11,105 10,279
2002 9,930 10,914 10,319
2002 10,690 11,777 10,377
2002 10,978 12,109 10,435
2002 10,507 11,608 10,435
2002 9,950 11,008 10,441
2002 8,558 9,453 10,453
2002 8,645 9,543 10,488
2002 8,113 8,959 10,505
2002 8,365 9,245 10,531
2002 8,780 9,726 10,531
2002 8,481 9,399 10,508
2003 8,181 9,076 10,554
2003 7,910 8,785 10,636
2003 7,968 8,854 10,700
2003 8,597 9,573 10,676
2003 9,283 10,344 10,659
2003 9,515 10,613 10,671
2003 9,999 11,165 10,682
2003 10,473 11,708 10,723
2003 10,163 11,364 10,758
2003 11,024 12,349 10,746
2003 11,430 12,816 10,717
2003 11,633 13,043 10,705
2004 11,963 13,418 10,758
2004 12,186 13,676 10,816
2004 12,322 13,856 10,885
April 30, 2004 $11,895 $13,396 $10,920
Average Annual Total Returns/1/
As of April 30, 2004
From
Inception
Class A/2/ 1-Year 7/1/2000
- ----------------------------------------------------------------
without sales charge 38.37% 6.20%
with sales charge 30.72% 4.64%
From
Inception
Class B/2/ 1-Year 7/1/2000
- ----------------------------------------------------------------
without sales charge 37.06% 5.31%
with sales charge 33.06% 4.86%
Footnotes read:
* As you compare performance, please note that the Fund's
performance reflects the maximum 5.5% sales charge,
while the S&P SmallCap 600 Index and the Consumer Price
Index do not reflect any such charges. If you were to
purchase any of the above individual stocks or funds
represented in these Indexes, any charges you would pay
would reduce your total return as well.
** The S&P SmallCap 600 Index is an index that represents the average
performance of a group of 600 small capitalization
stocks. "S&P SmallCap 600 Index" is a trademark of The
McGraw-Hill Companies, Inc. and has been licensed for
use by Thrivent Financial for Lutherans. The product is
not sponsored, endorsed or promoted by Standard &
Poor's and Standard & Poor's makes no representation
regarding the advisability of investing in the product.
Index funds are subject to the same market risks
associated with the stocks in their respective indexes.
It is not possible to invest directly in the Index. The
performance of the Index does not reflect deductions
for fees, expenses or taxes.
*** The Consumer Price Index is an inflationary indicator that
measures the change in the cost of a fixed basket of
products and services, including housing, electricity,
food and transportation. It is not possible to invest
directly in the Index.
/1/ Past performance is not an indication of future results.
Annualized total returns represent past performance and
reflect changes in share prices, the reinvestment of
all dividends and capital gains, and the effects of
compounding. Investment return and principal value will
fluctuate, and shares, when redeemed, may be worth more
or less than their original cost. Current performance
may be lower or higher than the performance data
quoted. Call 800-THRIVENT or visit www.thrivent.com for
more current performance results. At various times, the
Fund's adviser waived its management fee and/or
reimbursed Fund expenses. Had the adviser not done so,
the Fund's total returns would have been lower. The
returns shown do not reflect taxes a shareholder would
pay on distributions or redemptions. The prospectus
contains more complete information on the objectives,
risks, charges and expenses of the investment company
which investors should read and consider carefully
before investing. Please read your prospectus
carefully.
/2/ Class A performance has been restated to reflect the maximum sales
charge of 5.5%. Class B performance reflects the
maximum contingent deferred sales charge (CDSC) of 5%,
declining 1% each year during the first five years and
then converting to Class A shares after the fifth year.
The AAL Small Cap Value Fund
[PHOTO OMITTED: CHRISTOPHER J. SERRA]
Christopher J. Serra, Portfolio Manager
The AAL Small Cap Value Fund seeks long-term capital appreciation by
investing primarily in a diversified portfolio of small company common
stock and securities convertible into small company common stocks.
Effective June 1, 2004, the Adviser entered into a subadvisory
agreement with T. Rowe Price Associates, Inc.
In a year marked by terrific market-wide returns, small-cap value
stocks enjoyed a particularly robust 2003. For the 12-month period
ended April 30, 2004, The AAL Small Cap Value Fund produced a vigorous
45.55% return. The Fund outperformed its Lipper Inc. peer group of
small-capitalization value funds, which returned a median of 39.69%.
The Fund's previous benchmark, the S&P SmallCap 600/Barra Value Index,
returned 43.37%, while the Fund's current benchmark, the Russell 2000
Value Index, returned 42.45%. Because the Russell 2000 Value Index is
a more accurate reflection of the companies in which the Fund invests,
it will be used to compare performance of the Fund, rather than the
S&P SmallCap 600/Barra Value Index.
Small Caps Reassert Their Value
Conditions during much of the 12-month period were ideal for a small
cap rally as the markets corrected an ongoing bias toward large-cap
stocks. Buoyed by diminished fears of the Iraq war ramifications and
increased optimism for an improving economy, risk-ready investors
eagerly led the charge to outstanding returns. While many sectors
performed well during this rally, the Fund's outperformance can be
traced more to effective stock selection than to positive sector bets.
In late 2002 and early 2003, in anticipation of the small-cap rally,
we identified several stocks which the markets had largely dismissed
as low-quality options due to poor recent performance, but in which we
saw value. After a thorough evaluation revealed good returns on
capital, promising business outlooks, and solid management teams, we
added them to the portfolio. These were the names that helped pace the
Fund's outperformance during the period.
The performance of the health-care sector during the period is also
worth noting. While the growth prospects for service-related
health-care stocks do not appear sustainable, the outlook for
small-company stocks with a proprietary product advantage continues to
be attractive. We capitalized on this opportunity by identifying
several high-performing companies with products serving burgeoning
markets including pharmaceuticals, contact lenses and orthopedics.
[GRAPHIC OMITTED: TOP INDUSTRIES]
Top Industries
(% of Portfolio)
Industrials 17.8%
Consumer Discretionary 16.8%
Financials 15.8%
Information Technology 8.1%
Health Care 7.5%
Materials 6.8%
Energy 6.4%
Consumer Staples 3.1%
Utilities 2.7%
Top 10 Holdings
(% of Portfolio)
Lafarge North America, Inc. 1.0%
Casey's General Stores, Inc. 1.0%
IDEX Corporation 1.0%
Griffon Corporation 0.9%
HCC Insurance Holdings, Inc. 0.9%
United Surgical Partners International, Inc. 0.9%
Affiliated Managers Group, Inc. 0.8%
Cooper Companies, Inc. 0.8%
MacDermid, Inc. 0.8%
Consolidated Graphics, Inc. 0.8%
These common stocks represent 8.9% of the total investment portfolio.
Footnotes read:
Quoted Fund performance is for Class A shares and does not reflect a
sales charge.
The returns shown do not reflect taxes a shareholder would pay on
distributions or redemptions.
Quoted Top Industries, Portfolio Composition and Top 10 Holdings are
subject to change.
The list of Top 10 Holdings excludes short term investments and
collateral held for securities loaned.
Outlook
It's unclear how growth and value stocks will fare in the coming
months. Throughout the past five or six years, the performance of
growth and value stocks has occupied extreme ends of the spectrum.
After growth significantly outperformed value in the late 1990s, the
tables were turned for three years, beginning in 2001. Historically,
however, such extremes have been infrequent exceptions to the rule. It
appears as if we have reached parity in this relationship and,
therefore, we expect only modest outperformance by either value or
growth stocks in the near future.
While this environment may not be conducive to producing similar
returns to those of the past 12 months, our approach to managing the
Fund will not change dramatically. We will continue to seek small-cap
company values and then purchase them at meaningful discounts.
Uncovering these undervalued diamonds in the rough that propelled the
Fund's growth in the past 12 months has gained added complexity,
however. Many of those small company stocks have risen precipitously
and no longer offer the growth potential that was so abundant a few
years ago. The cost reductions made by many companies in recent years
still present operating leverage that could continue to produce
earnings growth and solid returns for small-cap investors.
Portfolio Facts
As of April 30, 2004
A Share B Share Institutional Share
------------------ ------------------ -------------------
Ticker AALVX BBSVX N/A
Transfer Agent ID 032 082 099
Net Assets $50,625,938 $5,677,378 $10,338,526
NAV $13.58 $13.29 $13.90
NAV -- High+ 4/5/2004 -- $14.35 4/5/2004 -- $14.05 4/5/2004 -- $14.67
NAV -- Low+ 5/1/2003 -- $9.30 5/1/2003 -- $9.18 5/1/2003 -- $9.45
Number of Holdings: 181 + For the year ended April 30, 2004
[GRAPHIC WORM CHART OMITTED: VALUE OF A $10,000 INVESTMENT]
Value of a $10,000 Investment
Class A Shares*/1/
Russell
The AAL S&P SmallCap 2000 Consumer
Small Cap 600/Barra Value Price
Date Value Fund Value Index*** Index** Index****
- ------------------------------------------------------------------------
July 17, 2001 9,450 10,000 10,000 10,000
2001 9,667 10,023 9,975 9,972
2001 9,526 9,862 9,940 9,972
2001 8,439 8,450 8,843 10,017
2001 8,949 8,837 9,074 9,983
2001 9,346 9,544 9,726 9,966
2001 10,074 10,233 10,321 9,927
2002 10,357 10,424 10,458 9,949
2002 10,244 10,379 10,522 9,989
2002 10,953 11,281 11,310 10,045
2002 11,009 11,743 11,708 10,101
2002 10,773 11,298 11,321 10,101
2002 10,283 10,792 11,070 10,107
2002 8,790 9,038 9,425 10,118
2002 8,742 9,026 9,384 10,152
2002 8,143 8,362 8,713 10,169
2002 8,210 8,529 8,844 10,194
2002 8,866 8,990 9,550 10,194
2002 8,524 8,752 9,142 10,171
2003 8,248 8,391 8,885 10,216
2003 8,105 8,080 8,586 10,295
2003 8,133 8,055 8,678 10,357
2003 8,875 8,783 9,502 10,334
2003 9,665 9,602 10,472 10,318
2003 9,903 9,887 10,650 10,329
2003 10,455 10,369 11,181 10,340
2003 10,997 10,870 11,605 10,379
2003 10,750 10,514 11,472 10,413
2003 11,587 11,450 12,408 10,402
2003 12,072 11,923 12,884 10,374
2003 12,576 12,256 13,350 10,363
2004 12,966 12,549 13,812 10,413
2004 13,289 12,846 14,079 10,469
2004 13,347 13,073 14,274 10,537
April 30, 2004 $12,918 $12,593 $13,536 $10,571
Average Annual Total Returns/1/
As of April 30, 2004
From
Inception
Class A/2/ 1-Year 7/17/2001
- ----------------------------------------------------------------
without sales charge 45.55% 11.86%
with sales charge 37.59% 9.62%
From
Inception
Class B/2/ 1-Year 7/17/2001
- ----------------------------------------------------------------
without sales charge 44.30% 11.00%
with sales charge 40.30% 10.10%
From
Inception
Institutional Class/3/ 1-Year 7/17/2001
- ----------------------------------------------------------------
Net Asset Value 46.78% 12.80%
Footnotes read:
* As you compare performance, please note that the Fund's
performance reflects the maximum 5.5% sales charge,
while the Russell 2000 Value Index, the S&P SmallCap
600/Barra Value Index and the Consumer Price Index do
not reflect any such charges. If you were to purchase
any of the above individual stocks or funds represented
in these Indexes, any charges you would pay would
reduce your total return as well.
** The Russell 2000 Value Index is an index comprised of companies
with a greater than average value orientation within
the Russell 2000 Index. It is not possible to invest
directly in these Indexes. The performance of these
Indexes does not reflect deductions for fees, expenses
or taxes. The composition of the Russell 2000 Value
Index serves as a better reflection of the Fund's
current investment strategy than does the S&P 600/Barra
Value Index.
*** The S&P SmallCap 600/Barra Value Index is capitalization-weighted
index that comprises all of the stocks in the S&P
SmallCap 600 Index that have low price-to-book ratios.
It is not possible to invest directly in these Indexes.
The performance of these Indexes does not reflect
deductions for fees, expenses or taxes.
**** The Consumer Price Index is an inflationary indicator that
measures the change in the cost of a fixed basket of
products and services, including housing, electricity,
food and transportation. It is not possible to invest
directly in the Index.
/1/ Past performance is not an indication of future results.
Annualized total returns represent past performance and
reflect changes in share prices, the reinvestment of
all dividends and capital gains, and the effects of
compounding. Investment return and principal value will
fluctuate, and shares, when redeemed, may be worth more
or less than their original cost. Current performance
may be lower or higher than the performance data
quoted. Call 800-THRIVENT or visit www.thrivent.com for
more current performance results. At various times, the
Fund's adviser waived its management fee and/or
reimbursed Fund expenses. Had the adviser not done so,
the Fund's total returns would have been lower. The
returns shown do not reflect taxes a shareholder would
pay on distributions or redemptions. The prospectus
contains more complete information on the objectives,
risks, charges and expenses of the investment company
which investors should read and consider carefully
before investing. Please read your prospectus
carefully.
/2/ Class A performance has been restated to reflect the maximum
sales charge of 5.5%. Class B performance reflects the
maximum contingent deferred sales charge (CDSC) of 5%,
declining 1% each year during the first five years and
then converting to Class A shares after the fifth year.
/3/ Institutional Class shares have no sales load and are for
institutional shareholders only.
The AAL Mid Cap Stock Fund
[PHOTO OMITTED: BRIAN J. FLANAGAN AND JOHN E. HINTZ]
Brian J. Flanagan (left) and John E. Hintz (right), Portfolio
Co-Managers
The AAL Mid Cap Stock Fund seeks long-term capital growth by investing
primarily in common stocks and securities convertible into common
stocks of mid-sized companies.
Mid-cap stocks surged during the 12-month period ended April 30, 2004.
They were propelled by strong fiscal stimulus, low interest rates,
rebounding corporate profits and a higher investor risk tolerance. For
the period, The AAL Mid Cap Stock Fund posted a 29.98% total return,
compared to a median return of 32.29% for its Lipper Inc. peer group
of similar mid-cap core funds. The Fund's market benchmark, the S&P
MidCap 400 Index, recorded a 34.43% return during the period.
Rising Tide Favored Riskier Issues
As the economy began to rebound in 2003, the rising tide lifted all
mid-cap stock "boats," particularly those that appeared on the verge
of never being able to sail again. Therefore, investing in those
companies with the lowest valuations and the most risk resulted in the
best performance throughout the year.
Most of the Fund's underperformance relative to its benchmark occurred
during the first six months of the period and was due to its bias
toward higher-quality issues. About mid-period, the Fund repositioned
its holdings to help neutralize the quality bias somewhat. The Fund's
relative performance also was impaired by a slight underweighting in
the semiconductor industry, which did well during the period.
Conversely, the Fund's performance was boosted by commercial bank and
other holdings in the financial sector.
Outlook
As we continue into 2004, stock selection will be the key to
outperformance, as most company valuations already reflect the
improving economy. Also, as hiring accelerates and productivity levels
off, profit growth will decelerate throughout the year. Therefore,
investing in companies that are taking market share and have relative
pricing power will lead to outperformance.
[GRAPHIC OMITTED: TOP INDUSTRIES]
Top Industries
(% of Portfolio)
Consumer Discretionary 16.1%
Financials 15.1%
Information Technology 13.3%
Health Care 12.4%
Industrials 10.4%
Energy 7.2%
Materials 4.7%
Consumer Staples 3.7%
Utilities 3.0%
Communications Services 0.6%
Top 10 Holdings
(% of Portfolio)
Tyson Foods, Inc. 1.1%
Hershey Foods Corporation 1.1%
Countrywide Financial Corporation 1.1%
Dean Foods Company 0.9%
XL Capital, Ltd. 0.9%
HCC Insurance Holdings, Inc. 0.9%
Nabors Industries, Ltd. 0.9%
Applebee's International, Inc. 0.8%
Waste Management, Inc. 0.8%
C.R. Bard, Inc. 0.8%
These common stocks represent 9.3% of the total investment portfolio.
Footnotes read:
Quoted Fund performance is for Class A shares and does not reflect a
sales charge.
The returns shown do not reflect taxes a shareholder would pay on
distributions or redemptions.
Quoted Top Industries, Portfolio Composition and Top 10 Holdings are
subject to change.
The list of Top 10 Holdings excludes short term investments and
collateral held for securities loaned.
As year-over-year sales and earnings comparisons become more difficult
after the second quarter, tax and fiscal stimulus ebbs and rates
potentially increase, the penalty for missing earnings will rise --
and increased caution will be prudent. However, solid near-term
results driven by increased capital spending, a strong consumer, and
low inventory levels do not currently argue for a significantly
defensive strategy. Overall, our strategy is to be much more selective
and focus on those companies taking market share. At the same time,
our industry weightings are relatively neutral.
Portfolio Facts
As of April 30, 2004
A Share B Share Institutional Share
------------------ ------------------ -------------------
Ticker AASCX BBSCX N/A
Transfer Agent ID 021 083 051
Net Assets $789,854,730 $26,819,605 $28,436,839
NAV $13.96 $12.78 $14.46
NAV -- High+ 4/5/2004 -- $14.74 3/5/2004 -- $13.50 4/5/2004 -- $15.25
NAV -- Low+ 5/1/2003 -- $10.72 5/1/2003 -- $9.93 5/1/2003 -- $11.04
Number of Holdings: 197 + For the year ended April 30, 2004
[GRAPHIC WORM CHART OMITTED: VALUE OF A $10,000 INVESTMENT]
Value of a $10,000 Investment
Class A Shares*/1/
The AAL Consumer
Mid Cap S&P MidCap Price
Date Stock Fund 400 Index** Index***
- ------------------------------------------------------------------------
April 30, 1994 9,450 10,000 10,000
1994 8,922 11,033 10,125
1994 8,157 10,876 10,159
1994 8,194 10,373 10,194
1994 8,958 10,450 10,208
1994 9,022 10,351 10,215
1994 9,423 9,994 10,249
1994 9,086 10,333 10,277
1994 9,414 10,874 10,319
1995 9,031 10,671 10,346
1995 9,496 10,788 10,353
1995 9,969 10,301 10,367
1995 9,942 10,396 10,367
1995 10,069 10,504 10,409
1995 11,034 11,055 10,450
1995 12,154 11,247 10,485
1995 12,081 11,473 10,519
1995 12,828 11,749 10,540
1995 13,037 12,228 10,561
1995 13,574 12,866 10,561
1995 13,601 13,104 10,589
1996 13,565 13,421 10,609
1996 14,211 13,076 10,644
1996 14,321 13,647 10,637
1996 15,568 13,613 10,630
1996 16,151 13,810 10,693
1996 15,131 14,280 10,727
1996 13,337 14,451 10,783
1996 14,257 14,892 10,824
1996 15,013 15,094 10,845
1996 14,239 14,867 10,852
1996 14,985 13,861 10,873
1996 14,791 14,661 10,893
1997 15,325 15,300 10,928
1997 14,802 15,344 10,963
1997 13,713 16,209 10,983
1997 13,843 16,227 10,983
1997 15,325 16,836 11,018
1997 15,978 16,698 11,053
1997 17,013 15,986 11,080
1997 17,046 16,400 11,094
1997 18,298 17,834 11,087
1997 17,416 18,335 11,101
1997 17,329 20,151 11,115
1997 17,459 20,126 11,136
1998 17,049 21,283 11,163
1998 18,290 20,357 11,191
1998 19,049 20,659 11,184
1998 19,194 21,460 11,170
1998 18,073 21,052 11,191
1998 18,422 22,796 11,212
1998 17,278 23,824 11,233
1998 13,458 24,259 11,253
1998 14,507 23,167 11,274
1998 15,434 23,314 11,288
1998 16,290 22,410 11,302
1998 17,821 18,238 11,316
1999 17,770 19,941 11,330
1999 16,762 21,723 11,357
1999 17,208 22,807 11,357
1999 17,732 25,563 11,350
1999 18,396 24,568 11,378
1999 19,417 23,281 11,392
1999 19,187 23,932 11,427
1999 18,536 25,819 11,510
1999 18,128 25,931 11,510
1999 18,842 27,320 11,510
1999 19,621 26,739 11,544
1999 21,087 25,823 11,572
2000 20,170 25,025 11,627
2000 22,328 26,301 11,648
2000 23,219 27,681 11,655
2000 22,571 29,326 11,655
2000 22,261 28,501 11,683
2000 23,664 30,495 11,752
2000 23,502 33,047 11,849
2000 26,362 31,893 11,856
2000 26,564 31,495 11,863
2000 25,418 31,958 11,932
2000 22,584 32,463 11,953
2000 25,310 36,087 11,967
2001 25,080 35,840 12,029
2001 23,502 34,625 12,050
2001 21,513 32,011 12,057
2001 24,209 34,460 12,050
2001 24,439 35,227 12,126
2001 24,136 33,217 12,175
2001 22,770 30,747 12,202
2001 21,454 34,139 12,251
2001 18,789 34,935 12,306
2001 19,532 34,793 12,327
2001 20,324 34,275 12,292
2001 21,151 33,154 12,292
2002 20,780 29,030 12,348
2002 20,695 30,314 12,306
2002 22,078 32,569 12,285
2002 21,943 34,251 12,237
2002 21,741 34,074 12,265
2002 20,071 34,116 12,313
2002 18,250 36,554 12,382
2002 18,199 36,383 12,452
2002 16,883 35,770 12,452
2002 17,642 33,152 12,458
2002 18,452 29,940 12,472
2002 17,777 30,091 12,514
2003 17,389 27,668 12,535
2003 17,120 28,866 12,566
2003 17,153 29,109 12,641
2003 18,115 31,221 12,614
2003 19,565 33,806 12,593
2003 19,717 34,237 12,607
2003 20,206 35,452 12,621
2003 20,881 37,058 12,669
2003 20,493 36,491 12,710
2003 22,146 39,250 12,696
2003 22,888 40,617 12,662
2003 23,411 41,302 12,648
2004 23,866 42,196 12,710
2004 24,406 43,210 12,779
2004 24,389 43,393 12,861
April 30, 2004 $23,546 $41,969 $12,902
Average Annual Total Returns/1/
As of April 30, 2004
Class A/2/ 1-Year 5-Year 10-Year
- ----------------------------------------------------------------
without sales charge 29.98% 5.84% 9.56%
with sales charge 22.78% 4.64% 8.95%
From
Inception
Class B/2/ 1-Year 5-Year 1/8/1997
- ----------------------------------------------------------------
without sales charge 28.44% 4.60% 5.66%
with sales charge 24.44% 4.60% 5.66%
From
Inception
Institutional Class/3/ 1-Year 5-Year 12/29/1997
- ----------------------------------------------------------------
Net Asset Value 30.74% 6.43% 5.91%
Footnotes read:
* As you compare performance, please note that the Fund's
performance reflects the maximum 5.5% sales charge,
while the S&P MidCap 400 Index and the Consumer Price
Index do not reflect any such charges. If you were to
purchase any of the above individual stocks or funds
represented in these Indexes, any charges you would pay
would reduce your total return as well.
** The S&P MidCap 400 Index is an index that represents the average
performance of a group of 400 medium capitalization
stocks. It is not possible to invest directly in the
Index. The performance of the Index does not reflect
deductions for fees, expenses or taxes.
*** The Consumer Price Index is an inflationary indicator that
measures the change in the cost of a fixed basket of
products and services, including housing, electricity,
food and transportation. It is not possible to invest
directly in the Index.
/1/ Past performance is not an indication of future results.
Annualized total returns represent past performance and
reflect changes in share prices, the reinvestment of
all dividends and capital gains, and the effects of
compounding. Investment return and principal value will
fluctuate, and shares, when redeemed, may be worth more
or less than their original cost. Current performance
may be lower or higher than the performance data
quoted. Call 800-THRIVENT or visit www.thrivent.com for
more current performance results. At various times, the
Fund's adviser waived its management fee and/or
reimbursed Fund expenses. Had the adviser not done so,
the Fund's total returns would have been lower. The
returns shown do not reflect taxes a shareholder would
pay on distributions or redemptions. The prospectus
contains more complete information on the objectives,
risks, charges and expenses of the investment company
which investors should read and consider carefully
before investing. Please read your prospectus
carefully.
/2/ Class A performance has been restated to reflect the maximum sales
charge of 5.5%. Class B performance reflects the
maximum contingent deferred sales charge (CDSC) of 5%,
declining 1% each year during the first five years and
then converting to Class A shares after the fifth year.
/3/ Institutional Class shares have no sales load and are for
institutional shareholders only.
The AAL Mid Cap Index Fund
[PHOTO OMITTED: KEVIN R. BRIMMER]
Kevin R. Brimmer, Portfolio Manager
The AAL Mid Cap Index Fund seeks total returns that track the
performance of the S&P MidCap 400 Index by investing primarily in
common stocks comprising the Index.
The AAL Mid Cap Index Fund returned 33.71% for the 12-month period
ended April 30, 2004, versus a return of 34.43% for the S&P MidCap 400
Index. The Fund's Lipper Inc. peer group of similar mid-cap core funds
posted a median return of 32.29% for the period. The difference in
performance between the Fund and the benchmark was primarily a result
of expenses charged to the Fund that do not apply to the unmanaged
index.
A Strong Period For Mid-Cap Stocks
The Fund's share price trended upward over the past 12 months, with
the exception of September and April. The September decline was
closely followed by another strong period in stocks from October
through March, with a decline in April to close the period. Stocks in
every economic sector showed positive returns for the period, with
health care and consumer staples stocks leading with gains of more
than 42% and 40%, respectively.
The AAL Mid Cap Index Fund, as an index portfolio, is managed with a
passive approach, meaning there is no active stock selection process.
The Fund's objective is to replicate the performance of the S&P MidCap
400 Index to provide broad exposure to mid-capitalization stocks
across various economic sectors. This is done by purchasing all 400
securities in the index to mirror the composition of the index as
closely as possible, while at the same time trying to keep transaction
costs at a minimum. Generally, variances in performance relative to
the index are a function of fund expenses, transaction costs, and
minor differences in portfolio composition relative to that of the
index. All of these variables will have less of an impact on
performance as the Fund grows in size.
[GRAPHIC OMITTED: TOP INDUSTRIES]
Top Industries
(% of Portfolio)
Consumer Discretionary 16.7%
Financials 16.4%
Information Technology 12.6%
Industrials 11.3%
Health Care 10.3%
Energy 5.8%
Utilities 5.6%
Consumer Staples 4.2%
Materials 3.8%
Communications Services 0.5%
Top 10 Holdings
(% of Portfolio)
Gilead Sciences, Inc. 1.1%
Washington Post Company 0.8%
Coach, Inc. 0.7%
Lennar Corporation 0.7%
New York Community Bancorp, Inc. 0.6%
L-3 Communications Holdings, Inc. 0.6%
D.R. Horton, Inc. 0.6%
Career Education Corporation 0.6%
Murphy Oil Corporation 0.6%
Tyson Foods, Inc. 0.6%
These common stocks represent 6.9% of the total investment portfolio.
Footnotes read:
The returns shown do not reflect taxes a shareholder would pay on
distributions or redemptions.
Quoted Top Industries, Portfolio Composition and Top 10 Holdings are
subject to change.
The list of Top 10 Holdings excludes short term investments and
collateral held for securities loaned.
Outlook
Our near-term outlook for U.S. stocks remains positive. Economic
growth and corporate profits appear strong, hiring is picking up, and
consumer and business spending is brisk. As the economy heats up,
however, inflation may resurge, prompting the Federal Reserve to push
up interest rates. Higher interest rates are an expense for businesses
and consumers that could brake economic growth, cut into profits, and
slow stock price gains.
Portfolio Facts
As of April 30, 2004
Institutional Share
-------------------
Ticker AALMX
Transfer Agent ID 097
Net Assets $31,725,032
NAV $11.79
NAV -- High+ 4/5/2004 -- $12.45
NAV -- Low+ 5/1/2003 -- $8.89
Number of Holdings: 401 + For the year ended April 30, 2004
[GRAPHIC WORM CHART OMITTED: VALUE OF A $10,000 INVESTMENT]
Value of a $10,000 Investment
Institutional Class Shares*/1/
The AAL Consumer
Mid Cap S&P MidCap Price
Date Index Fund 400 Index** Index***
- ------------------------------------------------------------------------
December 31, 1999 10,000 10,000 10,000
2000 9,730 9,718 10,024
2000 10,480 10,398 10,083
2000 11,320 11,269 10,166
2000 10,900 10,875 10,172
2000 10,760 10,740 10,178
2000 10,940 10,897 10,238
2000 11,090 11,069 10,255
2000 12,320 12,305 10,267
2000 12,220 12,221 10,321
2000 11,780 11,807 10,339
2000 10,880 10,915 10,345
2000 11,729 11,751 10,339
2001 11,943 12,012 10,404
2001 11,279 11,327 10,446
2001 10,433 10,485 10,469
2001 11,568 11,641 10,511
2001 11,836 11,912 10,559
2001 11,776 11,864 10,576
2001 11,603 11,687 10,547
2001 11,224 11,305 10,547
2001 9,849 9,899 10,594
2001 10,271 10,337 10,559
2001 11,029 11,106 10,541
2001 11,588 11,679 10,499
2002 11,523 11,619 10,523
2002 11,534 11,633 10,564
2002 12,354 12,465 10,624
2002 12,289 12,406 10,683
2002 12,081 12,197 10,683
2002 11,195 11,304 10,689
2002 10,127 10,209 10,701
2002 10,171 10,261 10,737
2002 9,368 9,434 10,755
2002 9,764 9,843 10,781
2002 10,314 10,412 10,781
2002 9,901 9,984 10,758
2003 9,594 9,693 10,805
2003 9,367 9,462 10,888
2003 9,435 9,541 10,954
2003 10,116 10,233 10,930
2003 10,945 11,081 10,912
2003 11,082 11,222 10,924
2003 11,468 11,620 10,936
2003 11,978 12,147 10,978
2003 11,785 11,961 11,013
2003 12,671 12,865 11,001
2003 13,103 13,313 10,972
2003 13,321 13,538 10,960
2004 13,607 13,831 11,013
2004 13,929 14,163 11,073
2004 13,986 14,223 11,144
April 30, 2004 $13,527 $13,757 $11,180
Average Annual Total Returns/1/
As of April 30, 2004
From
Inception
Institutional Class/2/ 1-Year 12/31/1999
- ----------------------------------------------------------------
Net Asset Value 33.71% 7.22%
Footnotes read:
* As you compare performance, please note that the Fund's
performance reflects Fund expenses, net of any
reimbursements, while the S&P MidCap 400 Index and the
Consumer Price Index do not reflect such charges. If
you were to purchase any of the above individual stocks
or funds represented in these Indexes, any charges you
would pay would reduce your total return as well.
** The S&P MidCap 400 Index is an index that represents the average
performance of a group of 400 medium capitalization
stocks. "S&P MidCap 400 Index" is a trademark of The
McGraw-Hill Companies, Inc. and has been licensed for
use by Thrivent Financial for Lutherans. The product is
not sponsored, endorsed or promoted by Standard &
Poor's and Standard & Poor's makes no representation
regarding the advisability of investing in the product.
Index funds are subject to the same market risks
associated with the stocks in their respective indexes.
It is not possible to invest directly in the Index. The
performance of the Index does not reflect deductions
for fees, expenses or taxes.
*** The Consumer Price Index is an inflationary indicator that
measures the change in the cost of a fixed basket of
products and services, including housing, electricity,
food and transportation. It is not possible to invest
directly in the Index.
/1/ Past performance is not an indication of future results.
Annualized total returns represent past performance and
reflect changes in share prices, the reinvestment of
all dividends and capital gains, and the effects of
compounding. Investment return and principal value will
fluctuate, and shares, when redeemed, may be worth more
or less than their original cost. Current performance
may be lower or higher than the performance data
quoted. Call 800-THRIVENT or visit www.thrivent.com for
more current performance results. At various times, the
Fund's adviser waived its management fee and/or
reimbursed Fund expenses. Had the adviser not done so,
the Fund's total returns would have been lower. The
returns shown do not reflect taxes a shareholder would
pay on distributions or redemptions. The prospectus
contains more complete information on the objectives,
risks, charges and expenses of the investment company
which investors should read and consider carefully
before investing. Please read your prospectus
carefully.
/2/ Institutional Class shares have no sales load and are for
institutional shareholders only.
The AAL Mid Cap Index Fund II
Kevin R. Brimmer, Portfolio Manager
[PHOTO OMITTED: KEVIN R. BRIMMER]
The AAL Mid Cap Index Fund II seeks total returns that track the
performance of the S&P MidCap 400 Index by investing primarily in
common stocks comprising the Index.
The AAL Mid Cap Index Fund II returned 32.72% for the 12-month period
ended April 30, 2004, versus a return of 34.43% for the S&P MidCap 400
Index. The Fund's Lipper Inc. peer group of similar mid-cap core funds
posted a median return of 32.29% for the period. The difference in
performance between the Fund and the benchmark was primarily a result
of expenses charged to the Fund that do not apply to the unmanaged
index.
A Strong Period For Mid-Cap Stocks
The Fund's share price trended upward over the past 12 months, with
the exception of September and April. The September decline was
closely followed by another strong period in stocks from October
through March, with a decline in April to close the period. Stocks in
every economic sector showed positive returns for the period, with
health care and consumer staples stocks leading with gains of more
than 42% and 40%, respectively.
The AAL Mid Cap Index Fund II, as an index portfolio, is managed with
a passive approach, meaning there is no active stock selection
process. The Fund's objective is to replicate the performance of the
S&P MidCap 400 Index to provide broad exposure to mid-capitalization
stocks across various economic sectors. This is done by purchasing all
400 securities in the index to mirror the composition of the index as
closely as possible, while at the same time trying to keep transaction
costs at a minimum. Generally, variances in performance relative to
the index are a function of fund expenses, transaction costs, and
minor differences in portfolio composition relative to that of the
index. All of these variables will have less of an impact on
performance as the Fund grows in size.
[GRAPHIC OMITTED: TOP INDUSTRIES]
Top Industries
(% of Portfolio)
Consumer Discretionary 17.1%
Financials 16.9%
Information Technology 12.9%
Industrials 11.7%
Health Care 10.5%
Energy 6.0%
Utilities 5.7%
Consumer Staples 4.2%
Materials 3.9%
Communications Services 0.5%
Top 10 Holdings
(% of Portfolio)
Gilead Sciences, Inc. 1.2%
Washington Post Company 0.8%
Coach, Inc. 0.7%
Lennar Corporation 0.7%
D.R. Horton, Inc. 0.6%
Career Education Corporation 0.6%
L-3 Communications Holdings, Inc. 0.6%
New York Community Bancorp, Inc. 0.6%
Tyson Foods, Inc. 0.6%
Murphy Oil Corporation 0.6%
These common stocks represent 7.0% of the total investment portfolio.
Footnotes read:
Quoted Fund performance is for Class A shares and does not reflect a
sales charge.
The returns shown do not reflect taxes a shareholder would pay on
distributions or redemptions.
Quoted Top Industries, Portfolio Composition and Top 10 Holdings are
subject to change.
The list of Top 10 Holdings excludes short term investments and
collateral held for securities loaned.
Outlook
Our near-term outlook for U.S. stocks remains positive. Economic
growth and corporate profits appear strong, hiring is picking up, and
consumer and business spending is brisk. As the economy heats up,
however, inflation may resurge, prompting the Federal Reserve to push
up interest rates. Higher interest rates are an expense for businesses
and consumers that could brake economic growth, cut into profits, and
slow stock price gains.
Portfolio Facts
As of April 30, 2004
A Share B Share
------------------ ------------------
Ticker AAMIX BMIFX
Transfer Agent ID 030 080
Net Assets $38,478,780 $5,421,677
NAV $11.48 $11.13
NAV -- High+ 4/5/2004 -- $12.13 4/5/2004 -- $11.78
NAV -- Low+ 5/1/2003 -- $8.63 5/1/2003 -- $8.41
Number of Holdings: 401 + For the year ended April 30, 2004
[GRAPHIC WORM CHART OMITTED: VALUE OF A $10,000 INVESTMENT]
Value of a $10,000 Investment
Class A Shares*/1/
The AAL Consumer
Mid Cap S&P MidCap Price
Date Index Fund II 400 Index** Index***
- ------------------------------------------------------------------------
July 1, 2000 9,450 10,000 10,000
2000 9,374 9,958 10,017
2000 10,404 11,070 10,029
2000 10,300 10,994 10,081
2000 9,913 10,621 10,099
2000 9,148 9,819 10,104
2000 9,879 10,571 10,099
2001 10,059 10,806 10,163
2001 9,471 10,189 10,203
2001 8,760 9,432 10,226
2001 9,708 10,472 10,267
2001 9,926 10,716 10,313
2001 9,869 10,673 10,331
2001 9,698 10,514 10,302
2001 9,376 10,170 10,302
2001 8,219 8,905 10,348
2001 8,561 9,299 10,313
2001 9,177 9,990 10,296
2001 9,646 10,507 10,255
2002 9,579 10,452 10,279
2002 9,579 10,465 10,319
2002 10,254 11,213 10,377
2002 10,188 11,161 10,435
2002 10,007 10,972 10,435
2002 9,275 10,169 10,441
2002 8,371 9,184 10,453
2002 8,409 9,230 10,488
2002 7,724 8,487 10,505
2002 8,047 8,855 10,531
2002 8,504 9,366 10,531
2002 8,144 8,982 10,508
2003 7,904 8,719 10,554
2003 7,712 8,512 10,636
2003 7,769 8,583 10,700
2003 8,317 9,206 10,676
2003 8,991 9,968 10,659
2003 9,096 10,095 10,671
2003 9,404 10,454 10,682
2003 9,818 10,927 10,723
2003 9,664 10,760 10,758
2003 10,375 11,573 10,746
2003 10,731 11,977 10,717
2003 10,894 12,178 10,705
2004 11,116 12,442 10,758
2004 11,375 12,741 10,816
2004 11,414 12,795 10,885
April 30, 2004 $11,039 $12,375 $10,920
Average Annual Total Returns/1/
As of April 30, 2004
From
Inception
Class A/2/ 1-Year 7/1/2000
- ----------------------------------------------------------------
without sales charge 32.72% 4.14%
with sales charge 25.46% 2.62%
From
Inception
Class B/2/ 1-Year 7/1/2000
- ----------------------------------------------------------------
without sales charge 32.03% 3.31%
with sales charge 28.03% 2.83%
Footnotes read:
* As you compare performance, please note that the Fund's
performance reflects the maximum 5.5% sales charge,
while the S&P MidCap 400 Index and the Consumer Price
Index do not reflect any such charges. If you were to
purchase any of the above individual stocks or funds
represented in these Indexes, any charges you would pay
would reduce your total return as well.
** The S&P MidCap 400 Index is an index that represents the average
performance of a group of 400 medium capitalization
stocks. "S&P MidCap 400 Index" is a trademark of The
McGraw-Hill Companies, Inc. and has been licensed for
use by Thrivent Financial for Lutherans. The product is
not sponsored, endorsed or promoted by Standard &
Poor's and Standard & Poor's makes no representation
regarding the advisability of investing in the product.
Index funds are subject to the same market risks
associated with the stocks in their respective indexes.
It is not possible to invest directly in the Index. The
performance of the Index does not reflect deductions
for fees, expenses or taxes.
*** The Consumer Price Index is an inflationary indicator that
measures the change in the cost of a fixed basket of
products and services, including housing, electricity,
food and transportation. It is not possible to invest
directly in the Index.
/1/ Past performance is not an indication of future results.
Annualized total returns represent past performance and
reflect changes in share prices, the reinvestment of
all dividends and capital gains, and the effects of
compounding. Investment return and principal value will
fluctuate, and shares, when redeemed, may be worth more
or less than their original cost. Current performance
may be lower or higher than the performance data
quoted. Call 800-THRIVENT or visit www.thrivent.com for
more current performance results. At various times, the
Fund's adviser waived its management fee and/or
reimbursed Fund expenses. Had the adviser not done so,
the Fund's total returns would have been lower. The
returns shown do not reflect taxes a shareholder would
pay on distributions or redemptions. The prospectus
contains more complete information on the objectives,
risks, charges and expenses of the investment company
which investors should read and consider carefully
before investing. Please read your prospectus
carefully.
/2/ Class A performance has been restated to reflect the maximum sales
charge of 5.5%. Class B performance reflects the
maximum contingent deferred sales charge (CDSC) of 5%,
declining 1% each year during the first five years and
then converting to Class A shares after the fifth year.
The AAL International Fund
[LOGO OMITTED: OECHSLE INTERNATIONAL ADVISORS]
Oechsle International Advisors, LLC, Portfolio Subadviser
The AAL International Fund seeks long-term capital growth by investing
primarily in a diversified portfolio of foreign stocks.*
International stocks delivered strong returns for the 12-month period
ending April 30, 2004, though optimism about the global economic
recovery moderated. The AAL International Fund posted a return of
31.75% for the period, while its Lipper Inc. peer group of
international stock funds earned a median return of 35.67%. The Fund's
market benchmark, the MSCI EAFE Index, posted a return of 40.75% for
the same time period.
Stock Selection, Currency Values Impacted Returns
More than a quarter of the Fund's shortfall relative to its benchmark
was due to the impact of currency on returns. Holdings in the
financial and technology sectors in Asia had negative currency returns
because these countries' currencies weakened with the U.S. dollar
against the euro and the yen. The majority of the Fund's
underperformance was related to stock selection, primarily in the
consumer discretionary sector. But currency developments played a
significant role here as well. The Fund's investments in the consumer
discretionary sector performed well when the dollar decline appeared
orderly. As the pace of the decline accelerated, however,
export-oriented stocks in Europe and Japan gave back some of the gains
they had achieved since the market turned up in March of 2003.
The fourth quarter of 2003 and the first quarter of 2004 were
particularly disappointing because the Fund's performance had begun to
improve meaningfully during the spring and summer months. The
subadviser's earnings-driven style can be summarized as "quality
growth." During the bear market, growth was out. As the market turned,
quality didn't work well either as investors reached for risk and
value continued to outperform.
[GRAPHIC OMITTED: TOP INDUSTRIES]
Top Industries
(% of Common Stocks)
Financials 22.3%
Consumer Discretionary 20.9%
Consumer Staples 8.6%
Communications Services 6.5%
Information Technology 6.1%
Energy 5.6%
Health Care 3.4%
Materials 3.2%
Industrials 2.0%
Utilities 0.4%
Top 10 Countries
(% of Portfolio)
Japan 16.0%
United Kingdom 14.5%
France 11.0%
Italy 5.9%
Spain 4.8%
Switzerland 4.0%
South Korea 3.4%
Sweden 3.2%
Germany 2.8%
Hong Kong 2.5%
These common stocks represent 68.1% of the total investment portfolio.
Footnotes read:
*International investing has special risks including currency
fluctuation and political volatility.
Quoted Fund performance is for Class A shares and does not reflect a
sales charge.
The returns shown do not reflect taxes a shareholder would pay on
distributions or redemptions.
Quoted Top Industries, Portfolio Composition and Top Countries are
subject to change.
Concerns About Future Growth
Continued weak U.S. employment data prompted fear that there would be
limited follow-through to the strong start this recovery has enjoyed.
The Federal Reserve Board also heightened concerns by revising its
statements about how long it could afford to be patient, shifting the
discussion about rate hikes from "if" to "when."
After the events of recent years, investors have more than the usual
skepticism about the strength of an economic recovery. But Fed
Chairman Greenspan has gone on record as saying that he expects job
creation to follow soon. Finally, recent economic data suggests that
Mr. Greenspan has been right. Surveys of U.S. CEOs reveal rising
optimism and hiring plans. And this improvement in the hiring picture
is mirrored in Japan, where strong export growth to China and a
strengthening domestic economy support the first sustainable
improvements in wages and employment in years.
Outlook
Recent data from around the world confirms our faith in the recovery,
and we expect this news to buoy the cyclical holdings that paused
during the first quarter of 2004. The world is moving from a
synchronized recovery to a synchronized expansion, which means robust
but moderating growth. And the Fed's first move toward higher rates is
now on the world's radar screen. These realities naturally inform our
stock selection and our approach to portfolio risk. But we believe
that investors will become increasingly comfortable with the
constructive earnings environment that still lies ahead.
Portfolio Facts
As of April 30, 2004
A Share B Share Institutional Share
------------------ ------------------ -------------------
Ticker AAITX BBITX N/A
Transfer Agent ID 023 084 093
Net Assets $162,121,585 $8,209,186 $3,392,263
NAV $8.79 $8.49 $8.89
NAV -- High+ 4/12/2004 -- $9.24 4/12/2004 -- $8.93 4/12/2004 -- $9.34
NAV -- Low+ 5/1/2003 -- $6.69 5/1/2003 -- $6.53 5/1/2003 -- $6.75
Number of Holdings: 86 + For the year ended April 30, 2004
[GRAPHIC WORM CHART OMITTED: VALUE OF A $10,000 INVESTMENT]
Value of a $10,000 Investment
Class A Shares**/1/
The AAL Consumer
International MSCI EAFE Price
Date Fund Index*** Index****
- ------------------------------------------------------------------------
August 1, 1995 9,450 10,000 10,000
1995 9,469 9,619 10,026
1995 9,431 9,806 10,046
1995 9,412 9,543 10,079
1995 9,412 9,808 10,072
1995 9,586 10,203 10,066
1996 9,994 10,245 10,125
1996 9,956 10,280 10,157
1996 10,107 10,498 10,210
1996 10,496 10,804 10,249
1996 10,439 10,605 10,269
1996 10,486 10,664 10,275
1996 10,136 10,353 10,295
1996 10,164 10,375 10,315
1996 10,354 10,651 10,348
1996 10,448 10,542 10,380
1996 10,818 10,961 10,400
1996 10,757 10,820 10,400
1997 10,953 10,442 10,433
1997 11,198 10,613 10,466
1997 11,179 10,651 10,492
1997 11,159 10,708 10,505
1997 11,669 11,404 10,498
1997 12,023 12,033 10,511
1997 12,101 12,228 10,525
1997 11,709 11,315 10,544
1997 11,875 11,949 10,571
1997 11,198 11,030 10,597
1997 11,012 10,918 10,590
1997 10,861 11,013 10,577
1998 11,151 11,517 10,597
1998 11,549 12,255 10,616
1998 11,903 12,633 10,636
1998 11,978 12,733 10,656
1998 12,097 12,671 10,675
1998 11,946 12,767 10,689
1998 11,828 12,896 10,702
1998 10,807 11,299 10,715
1998 10,453 10,952 10,728
1998 11,001 12,094 10,754
1998 11,592 12,714 10,754
1998 12,063 13,215 10,748
1999 12,570 13,176 10,774
1999 12,142 12,862 10,787
1999 12,333 13,399 10,820
1999 12,795 13,942 10,898
1999 12,356 13,224 10,898
1999 12,717 13,739 10,898
1999 13,066 14,148 10,931
1999 13,438 14,199 10,957
1999 13,652 14,342 11,010
1999 14,160 14,880 11,030
1999 14,937 15,397 11,036
1999 16,847 16,778 11,036
2000 16,215 15,712 11,062
2000 17,388 16,135 11,128
2000 17,332 16,761 11,220
2000 15,854 15,879 11,226
2000 15,325 15,491 11,233
2000 16,057 16,097 11,298
2000 15,415 15,422 11,318
2000 15,708 15,556 11,331
2000 14,772 14,798 11,390
2000 14,219 14,449 11,410
2000 13,475 13,907 11,416
2000 13,793 14,401 11,410
2001 13,935 14,394 11,482
2001 12,687 13,315 11,528
2001 11,722 12,427 11,554
2001 12,428 13,291 11,600
2001 11,887 12,822 11,652
2001 11,392 12,297 11,672
2001 11,110 12,074 11,639
2001 10,569 11,768 11,639
2001 9,380 10,576 11,692
2001 9,604 10,847 11,652
2001 10,086 11,246 11,633
2001 10,163 11,313 11,587
2002 9,638 10,712 11,613
2002 9,853 10,787 11,659
2002 10,306 11,371 11,725
2002 10,282 11,446 11,790
2002 10,259 11,602 11,790
2002 9,841 11,121 11,797
2002 8,803 12,227 11,810
2002 8,684 12,169 11,849
2002 7,777 10,845 11,869
2002 8,243 11,429 11,899
2002 8,493 11,948 11,899
2002 8,135 11,546 11,872
2003 7,727 11,064 11,925
2003 7,548 10,810 12,017
2003 7,284 10,598 12,089
2003 8,003 11,636 12,063
2003 8,422 12,341 12,043
2003 8,650 12,640 12,056
2003 8,925 12,945 12,069
2003 9,201 13,258 12,115
2003 9,177 13,667 12,154
2003 9,836 14,519 12,141
2003 9,956 14,843 12,109
2003 10,532 16,004 12,095
2004 10,616 16,231 12,154
2004 10,844 16,609 12,220
2004 10,880 16,709 12,299
April 30, 2004 $10,544 $16,345 $12,338
Average Annual Total Returns/1/
As of April 30, 2004
From
Inception
Class A/2/ 1-Year 5-Year 8/1/1995
- ----------------------------------------------------------------
without sales charge 31.75% (3.80)% 1.26%
with sales charge 24.48% (4.88)% 0.61%
From
Inception
Class B/2/ 1-Year 5-Year 1/8/1997
- ----------------------------------------------------------------
without sales charge 30.21% (4.95)% (1.03)%
with sales charge 26.21% (4.95%) (1.03)%
From
Inception
Institutional Class/3/ 1-Year 5-Year 12/29/1997
- ----------------------------------------------------------------
Net Asset Value 33.04% (3.04)% (0.24)%
Footnotes read:
** As you compare performance, please note that the Fund's
performance reflects the maximum 5.5% sales charge,
while the MSCI EAFE Index and the Consumer Price Index
do not reflect any such charges. If you were to
purchase any of the above individual stocks or funds
represented in these Indexes, any charges you would pay
would reduce your total return as well.
*** The Morgan Stanley Capital International Europe, Australasia, Far
East Index (MSCI EAFE Index) is a stock index designed
to measure the equity performance of developed
countries outside of North America. It is not possible
to invest directly in the Index. The performance of the
Index does not reflect deductions for fees, expenses or
taxes.
**** The Consumer Price Index is an inflationary indicator that
measures the change in the cost of a fixed basket of
products and services, including housing, electricity,
food and transportation. It is not possible to invest
directly in the Index.
/1/ Past performance is not an indication of future results.
Annualized total returns represent past performance and
reflect changes in share prices, the reinvestment of
all dividends and capital gains, and the effects of
compounding. Investment return and principal value will
fluctuate, and shares, when redeemed, may be worth more
or less than their original cost. Current performance
may be lower or higher than the performance data
quoted. Call 800-THRIVENT or visit www.thrivent.com for
more current performance results. At various times, the
Fund's adviser waived its management fee and/or
reimbursed Fund expenses. Had the adviser not done so,
the Fund's total returns would have been lower. The
returns shown do not reflect taxes a shareholder would
pay on distributions or redemptions. The prospectus
contains more complete information on the objectives,
risks, charges and expenses of the investment company
which investors should read and consider carefully
before investing. Please read your prospectus
carefully.
/2/ Class A performance has been restated to reflect the maximum
sales charge of 5.5%. Class B performance reflects the
maximum contingent deferred sales charge (CDSC) of 5%,
declining 1% each year during the first five years and
then converting to Class A shares after the fifth year.
/3/ Institutional Class shares have no sales load and are for
institutional shareholders only.
The AAL Capital Growth Fund
[PHOTO OMITTED: FREDERICK L. PLAUTZ]
Frederick L. Plautz, Portfolio Manager
The AAL Capital Growth Fund seeks long-term capital growth by
investing primarily in a diversified portfolio of common stocks and
securities convertible into common stocks.
The AAL Capital Growth Fund generated a total return of 15.23% for the
12 months ended April 30, 2004, compared to 22.87% for the S&P 500
Index and a median return of 19.57% for its Lipper Inc. peer group of
similar funds. The reporting period can be divided into two segments.
Between April 2003 and January 2004, U.S. stocks staged a virtually
uninterrupted rally as leadership resided in lower-quality companies
and speculative sectors. From February 2004 through April 2004,
however, equity prices drifted lower in fits and starts as investors
sought refuge in higher-quality names.
Puzzle Complete
The primary catalyst for the abrupt shift in market sentiment was a
series of strongly positive economic reports, the most important of
which showed dramatic improvement in the nation's sluggish labor
market. Until February, lackluster job growth was widely viewed as the
last missing piece of the recovery puzzle. With the key federal funds
rate at a 46-year low, many investors took advantage of cheap credit
to place speculative bets in riskier segments of the equity market.
When the foundation for a lasting recovery finally fell into place,
the likelihood that the Federal Reserve Board would soon take away the
monetary punch bowl caused the speculative party to break up and
leadership to revert to larger capitalization and higher-quality
stocks.
The Fund's relative performance was severely impaired over the first
nine months of the period by the tendency of many lower-quality
companies to outperform amid the easy-money conditions that prevailed
at that time. In particular, we did not expect technology stocks to
bounce back so strongly and quickly after the bursting of the tech
bubble. As a result, we were significantly underweighted to the
technology sector. Notably, it is the Fund's philosophy to seek out
quality companies selling at reasonable prices, even during periods
when market conditions might favor riskier stocks. Our determination
to stick with our strategy benefited relative performance over the
last few months of the period, as investors took profits in
smaller-cap and technology stocks and reallocated money to more stable
segments of the market. However, the magnitude of Fund outperformance
during that late period fell far short of what was necessary to match
our benchmark and peer group over the entire reporting period.
[GRAPHIC OMITTED: TOP INDUSTRIES]
Top Industries
(% of Portfolio)
Financials 22.6%
Information Technology 14.1%
Consumer Discretionary 14.1%
Consumer Staples 11.5%
Health Care 10.9%
Industrials 8.9%
Energy 8.3%
Communications Services 2.3%
Utilities 0.4%
Top 10 Holdings
(% of Portfolio)
Walgreen Company 3.4%
American International Group, Inc. 3.4%
Cox Communications, Inc. 3.4%
Altria Group, Inc. 3.2%
Pfizer, Inc. 3.1%
Microsoft Corporation 3.1%
Comcast Corporation 3.0%
Citigroup, Inc. 2.9%
Wal-Mart Stores, Inc. 2.9%
Exxon Mobil Corporation 2.7%
These common stocks represent 31.1% of the total investment portfolio.
Footnotes read:
Quoted Fund performance is for Class A shares and does not reflect a
sales charge.
The returns shown do not reflect taxes a shareholder would pay on
distributions or redemptions.
Quoted Top Industries, Portfolio Composition and Top 10 Holdings are
subject to change.
The list of Top 10 Holdings excludes short term investments and
collateral held for securities loaned.
Outlook
The clear investment skies that characterized most of 2003 have given
way to a hazy and unsettled environment. While the bull market could
still mount another charge later this year, the chances of a longer
correction have increased for several reasons. First, authorities in
China are attempting to slow their country's overheated economy
without causing a recession. Executing such an economic "soft landing"
is tricky at best, and the results are far from guaranteed. If China
lapses into recession, there would be significant negative
implications for the global economy. Also, while U.S. corporate
profitability remains strong, earnings growth nonetheless will slow
from its recent breakneck pace. Assuming yields on cash and bonds
increase, stocks will appear more expensive relative to competing
asset classes. Finally, the geopolitical environment has become
increasingly unpredictable as the level of violence has escalated in
the Middle East. Given our numerous concerns, we have positioned the
Fund defensively, with overweighted positions in less economically
sensitive stocks and those with strong financial characteristics.
Portfolio Facts
As of April 30, 2004
A Share B Share Institutional Share
------------------ ------------------ -------------------
Ticker AALGX BBLGX IILGX
Transfer Agent ID 017 067 090
Net Assets $2,807,384,900 $75,263,766 $84,851,101
NAV $29.15 $27.55 $29.24
NAV -- High+ 1/26/2004 -- $30.40 1/26/2004 -- $28.82 1/26/2004 -- $30.45
NAV -- Low+ 5/1/2003 -- $25.35 5/1/2003 -- $24.15 5/1/2003 -- $25.42
Number of Holdings: 110 + For the year ended April 30, 2004
[GRAPHIC WORM CHART OMITTED: VALUE OF A $10,000 INVESTMENT]
Value of a $10,000 Investment
Class A Shares*/1/
The AAL Consumer
Capital S&P 500 Price
Date Growth Fund Index** Index***
- ------------------------------------------------------------------------
April 30, 1994 9,450 10,000 10,000
1994 9,463 10,164 10,007
1994 9,256 9,915 10,041
1994 9,481 10,241 10,068
1994 9,751 10,660 10,109
1994 9,619 10,400 10,136
1994 9,857 10,633 10,142
1994 9,560 10,246 10,156
1994 9,732 10,398 10,156
1995 9,975 10,668 10,197
1995 10,301 11,084 10,237
1995 10,482 11,411 10,271
1995 10,808 11,747 10,305
1995 11,183 12,216 10,326
1995 11,327 12,500 10,346
1995 11,712 12,914 10,346
1995 11,663 12,947 10,373
1995 12,216 13,493 10,393
1995 12,153 13,445 10,427
1995 12,607 14,035 10,421
1995 12,748 14,306 10,414
1996 13,276 14,793 10,475
1996 13,298 14,930 10,509
1996 13,277 15,073 10,563
1996 13,602 15,296 10,604
1996 13,899 15,690 10,624
1996 13,888 15,750 10,631
1996 13,263 15,054 10,651
1996 13,539 15,372 10,672
1996 14,506 16,237 10,706
1996 14,681 16,684 10,739
1996 15,844 17,946 10,760
1996 15,559 17,590 10,760
1997 16,566 18,689 10,794
1997 16,398 18,836 10,828
1997 15,613 18,062 10,855
1997 16,398 19,140 10,868
1997 17,496 20,305 10,862
1997 18,287 21,215 10,875
1997 19,610 22,903 10,889
1997 18,647 21,620 10,909
1997 19,457 22,804 10,936
1997 19,243 22,042 10,963
1997 20,122 23,063 10,957
1997 20,782 23,459 10,943
1998 20,838 23,718 10,963
1998 22,485 25,429 10,984
1998 23,420 26,731 11,004
1998 23,692 27,000 11,024
1998 22,996 26,536 11,045
1998 24,452 27,614 11,058
1998 24,132 27,320 11,072
1998 20,466 23,370 11,085
1998 21,850 24,867 11,099
1998 23,563 26,889 11,126
1998 24,884 28,519 11,126
1998 26,641 30,162 11,119
1999 27,943 31,424 11,147
1999 27,365 30,447 11,160
1999 28,341 31,665 11,194
1999 29,188 32,892 11,275
1999 28,659 32,115 11,275
1999 30,179 33,898 11,275
1999 29,422 32,839 11,309
1999 28,697 32,677 11,337
1999 28,396 31,781 11,391
1999 30,342 33,792 11,411
1999 31,034 34,479 11,418
1999 32,664 36,510 11,418
2000 30,998 34,676 11,445
2000 29,983 34,019 11,513
2000 32,812 37,348 11,608
2000 31,897 36,224 11,615
2000 31,938 35,480 11,621
2000 32,865 36,355 11,689
2000 32,270 35,787 11,710
2000 33,667 38,009 11,723
2000 32,370 36,003 11,784
2000 32,956 35,851 11,805
2000 31,494 33,024 11,811
2000 32,307 33,186 11,805
2001 32,071 34,363 11,879
2001 30,473 31,230 11,927
2001 28,964 29,251 11,954
2001 30,561 31,525 12,001
2001 30,306 31,736 12,056
2001 29,238 30,963 12,076
2001 28,656 30,659 12,042
2001 26,849 28,739 12,042
2001 25,015 26,419 12,096
2001 25,738 26,923 12,056
2001 27,378 28,988 12,035
2001 27,800 29,242 11,988
2002 27,376 28,815 12,015
2002 26,847 28,260 12,062
2002 27,853 29,322 12,130
2002 26,327 27,545 12,198
2002 26,177 27,342 12,198
2002 24,177 25,394 12,205
2002 22,296 23,414 12,219
2002 22,384 23,569 12,259
2002 19,894 21,010 12,280
2002 21,739 22,857 12,310
2002 22,649 24,201 12,310
2002 21,475 22,780 12,283
2003 21,059 22,185 12,337
2003 20,829 21,851 12,432
2003 21,006 22,063 12,507
2003 22,466 23,879 12,480
2003 23,475 25,136 12,460
2003 23,506 25,457 12,473
2003 23,834 25,906 12,487
2003 24,179 26,411 12,534
2003 23,913 26,131 12,575
2003 24,995 27,608 12,561
2003 24,968 27,851 12,527
2003 26,012 29,311 12,514
2004 26,447 29,848 12,575
2004 26,625 30,263 12,643
2004 26,137 29,807 12,724
April 30, 2004 $25,888 $29,339 $12,765
Average Annual Total Returns/1/
As of April 30, 2004
Class A/2/ 1-Year 5-Year 10-Year
- ----------------------------------------------------------------
without sales charge 15.23% (2.37)% 10.60%
with sales charge 8.88% (3.47)% 9.98%
From
Inception
Class B/2/ 1-Year 5-Year 1/8/1997
- ----------------------------------------------------------------
without sales charge 13.89% (3.42)% 6.31%
with sales charge 9.89% (3.42)% 6.31%
From
Inception
Institutional Class/3/ 1-Year 5-Year 12/29/1997
- ----------------------------------------------------------------
Net Asset Value 15.76% (1.96)% 4.28%
Footnotes read:
* As you compare performance, please note that the Fund's
performance reflects the maximum 5.5% sales charge,
while the S&P 500 Index and the Consumer Price Index do
not reflect any such charges. If you were to purchase
any of the above individual stocks or funds represented
in these Indexes, any charges you would pay would
reduce your total return as well.
** The S&P 500 Index is an index that represents the average
performance of a group of 500 large-capitalization
stocks. It is not possible to invest directly in the
Index. The performance of the Index does not reflect
deductions for fees, expenses or taxes.
*** The Consumer Price Index is an inflationary indicator that
measures the change in the cost of a fixed basket of
products and services, including housing, electricity,
food and transportation. It is not possible to invest
directly in the Index.
/1/ Past performance is not an indication of future results.
Annualized total returns represent past performance and
reflect changes in share prices, the reinvestment of
all dividends and capital gains, and the effects of
compounding. Investment return and principal value will
fluctuate, and shares, when redeemed, may be worth more
or less than their original cost. Current performance
may be lower or higher than the performance data
quoted. Call 800-THRIVENT or visit www.thrivent.com for
more current performance results. At various times, the
Fund's adviser waived its management fee and/or
reimbursed Fund expenses. Had the adviser not done so,
the Fund's total returns would have been lower. The
returns shown do not reflect taxes a shareholder would
pay on distributions or redemptions. The prospectus
contains more complete information on the objectives,
risks, charges and expenses of the investment company
which investors should read and consider carefully
before investing. Please read your prospectus
carefully.
/2/ Class A performance has been restated to reflect the maximum sales
charge of 5.5%. Class B performance reflects the
maximum contingent deferred sales charge (CDSC) of 5%,
declining 1% each year during the first five years and
then converting to Class A shares after the fifth year.
/3/ Institutional Class shares have no sales load and are for
institutional shareholders only.
The AAL Large Company Index Fund
[PHOTO OMITTED: KEVIN R. BRIMMER]
Kevin R. Brimmer, Portfolio Manager
The AAL Large Company Index Fund seeks total returns that track the
performance of the S&P 500 Index by investing primarily in common
stocks comprising the Index.
The AAL Large Company Index Fund returned 22.00% for the 12-month
period ended April 30, 2004, versus a return of 22.87% for the S&P 500
Index. The Fund's Lipper Inc. peer group of similar S&P 500 Index
funds posted a median return of 22.15% for the period. The difference
in performance between the Fund and the benchmark was primarily a
result of expenses charged to the Fund that do not apply to the
unmanaged index. The Fund achieved its objective of providing a return
approximating that of the S&P 500 Index, after fees and expenses.
A Strong Period For Large-Cap Stocks
The Fund's share price trended upward over the past 12 months, with
the exception of September, March and April. The September decline was
closely followed by another strong period for stocks from October
through February, with a decline in March and April to close the
period. Stocks in every economic sector showed positive returns for
the period, with energy and materials stocks leading with gains of
more than 33% and 27%, respectively.
The AAL Large Company Index Fund, as an index portfolio, is managed
with a passive approach, meaning there is no active stock selection
process. The Fund's objective is to replicate the performance of the
S&P 500 Index to provide broad exposure to large-capitalization stocks
across various economic sectors. This is done by purchasing all 500
securities in the index to mirror the composition of the index as
closely as possible, while at the same time trying to keep transaction
costs at a minimum. Generally, variances in performance relative to
the index are a function of fund expenses, transaction costs, and
minor differences in portfolio composition relative to that of the
index. All of these variables will have less of an impact on
performance as the Fund grows in size.
[GRAPHIC OMITTED: TOP INDUSTRIES]
Top Industries
(% of Portfolio)
Financials 19.2%
Information Technology 15.4%
Health Care 12.7%
Consumer Staples 10.9%
Consumer Discretionary 10.7%
Industrials 10.1%
Energy 5.8%
Communications Services 3.3%
Utilities 2.8%
Materials 2.8%
Top 10 Holdings
(% of Portfolio)
General Electric Company 2.8%
Microsoft Corporation 2.6%
Exxon Mobil Corporation 2.5%
Pfizer, Inc. 2.5%
Citigroup, Inc. 2.2%
Wal-Mart Stores, Inc. 2.2%
American International Group, Inc. 1.7%
Intel Corporation 1.5%
Bank of America Corporation 1.5%
Johnson & Johnson 1.4%
These common stocks represent 20.9% of the total investment portfolio.
Footnotes read:
Quoted Fund performance is for Class A shares and does not reflect a
sales charge.
The returns shown do not reflect taxes a shareholder would pay on
distributions or redemptions.
Quoted Top Industries, Portfolio Composition and Top 10 Holdings are
subject to change.
The list of Top 10 Holdings excludes short term investments and
collateral held for securities loaned.
Outlook
Our near-term outlook for U.S. stocks remains positive. Economic
growth and corporate profits appear strong, hiring is picking up, and
consumer and business spending is brisk. As the economy heats up,
however, inflation may resurge, prompting the Federal Reserve to push
up interest rates. Higher interest rates are an expense for businesses
and consumers that could brake economic growth, cut into profits, and
slow stock price gains.
Portfolio Facts
As of April 30, 2004
Institutional Share
-------------------
Ticker IILCX
Transfer Agent ID 096
Net Assets $28,719,305
NAV $7.55
NAV -- High+ 2/11/2004 -- $7.88
NAV -- Low+ 5/1/2003 -- $6.31
Number of Holdings: 500 + For the year ended April 30, 2004
[GRAPHIC WORM CHART OMITTED: VALUE OF A $10,000 INVESTMENT]
Value of a $10,000 Investment
Institutional Class Shares*/1/
The AAL Consumer
Large Company S&P 500 Price
Date Index Fund Index*** Index**
- ------------------------------------------------------------------------
December 31, 1999 10,000 10,000 10,000
2000 9,530 9,498 10,024
2000 9,360 9,318 10,083
2000 10,270 10,229 10,166
2000 9,950 9,922 10,172
2000 9,740 9,718 10,178
2000 9,990 9,958 10,238
2000 9,840 9,802 10,255
2000 10,450 10,411 10,267
2000 9,900 9,861 10,321
2000 9,850 9,819 10,339
2000 9,070 9,045 10,345
2000 9,113 9,089 10,339
2001 9,426 9,412 10,404
2001 8,558 8,554 10,446
2001 8,023 8,012 10,469
2001 8,639 8,634 10,511
2001 8,690 8,692 10,559
2001 8,488 8,481 10,576
2001 8,397 8,397 10,547
2001 7,872 7,872 10,547
2001 7,236 7,236 10,594
2001 7,347 7,374 10,559
2001 7,902 7,940 10,541
2001 7,965 8,009 10,499
2002 7,853 7,892 10,523
2002 7,700 7,740 10,564
2002 7,985 8,031 10,624
2002 7,497 7,544 10,683
2002 7,446 7,489 10,683
2002 6,918 6,955 10,689
2002 6,390 6,413 10,701
2002 6,431 6,455 10,737
2002 5,740 5,754 10,755
2002 6,238 6,260 10,781
2002 6,593 6,629 10,781
2002 6,207 6,239 10,758
2003 6,043 6,076 10,805
2003 5,950 5,985 10,888
2003 5,991 6,043 10,954
2003 6,496 6,540 10,930
2003 6,835 6,885 10,912
2003 6,918 6,973 10,924
2003 7,031 7,096 10,936
2003 7,165 7,234 10,978
2003 7,082 7,157 11,013
2003 7,484 7,562 11,001
2003 7,535 7,628 10,972
2003 7,935 8,028 10,960
2004 8,072 8,175 11,013
2004 8,187 8,289 11,073
2004 8,061 8,164 11,144
April 30, 2004 $7,925 $8,036 $11,180
Average Annual Total Returns/1/
As of April 30, 2004
From
Inception
Institutional Class/2/ 1-Year 12/31/1999
- ----------------------------------------------------------------
Net Asset Value 22.00% (5.22)%
Footnotes read:
* As you compare performance, please note that the Fund's
performance reflects Fund expenses, net of any
reimbursements, while the Consumer Price Index and the
S&P 500 Index do not reflect such charges. If you were
to purchase any of the above individual stocks or funds
represented in these Indexes, any charges you would pay
would reduce your total return as well.
** The Consumer Price Index is an inflationary indicator that
measures the change in the cost of a fixed basket of
products and services, including housing, electricity,
food and transportation. It is not possible to invest
directly in the Index.
*** The S&P 500 Index is an index that represents the average
performance of a group of 500 large-capitalization
stocks. "S&P 500(registered trademark)" is a trademark
of The McGraw-Hill Companies, Inc. and has been
licensed for use by Thrivent Financial for Lutherans.
The product is not sponsored, endorsed or promoted by
Standard & Poor's and Standard & Poor's makes no
representation regarding the advisability of investing
in the product. Index funds are subject to the same
market risks associated with the stocks in their
respective indexes. It is not possible to invest
directly in the Index. The performance of the Index
does not reflect deductions for fees, expenses or
taxes.
/1/ Past performance is not an indication of future results.
Annualized total returns represent past performance and
reflect changes in share prices, the reinvestment of
all dividends and capital gains, and the effects of
compounding. Investment return and principal value will
fluctuate, and shares, when redeemed, may be worth more
or less than their original cost. Current performance
may be lower or higher than the performance data
quoted. Call 800-THRIVENT or visit www.thrivent.com for
more current performance results. At various times, the
Fund's adviser waived its management fee and/or
reimbursed Fund expenses. Had the adviser not done so,
the Fund's total returns would have been lower. The
returns shown do not reflect taxes a shareholder would
pay on distributions or redemptions. The prospectus
contains more complete information on the objectives,
risks, charges and expenses of the investment company
which investors should read and consider carefully
before investing. Please read your prospectus
carefully.
/2/ Institutional Class shares have no sales load and are for
institutional shareholders only.
The AAL Large Company Index Fund II
[PHOTO OMITTED: KEVIN R. BRIMMER]
Kevin R. Brimmer, Portfolio Manager
The AAL Large Company Index Fund II seeks total returns that track the
performance of the S&P 500 Index by investing primarily in common
stocks comprising the Index.
The AAL Large Company Index Fund II returned 22.09% for the 12-month
period ended April 30, 2004, versus a return of 22.87% for the S&P 500
Index. The Fund's Lipper Inc. peer group of similar S&P 500 Index
funds posted a median return of 22.15% for the period. The difference
in performance between the Fund and the benchmark was primarily a
result of expenses charged to the Fund that do not apply to the
unmanaged index. The Fund achieved its objective of providing a return
approximating that of the S&P 500 Index, after fees and expenses.
A Strong Period For Large-Cap Stocks
The Fund's share price trended upward over the past 12 months, with
the exception of September, March and April. The September decline was
closely followed by another strong period for stocks from October
through February, with a decline in March and April to close the
period. Stocks in every economic sector showed positive returns for
the period, with energy and materials stocks leading with gains of
more than 33% and 27%, respectively.
The AAL Large Company Index Fund II, as an index portfolio, is managed
with a passive approach, meaning there is no active stock selection
process. The Fund's objective is to replicate the performance of the
S&P 500 Index to provide broad exposure to large-capitalization stocks
across various economic sectors. This is done by purchasing all 500
securities in the index to mirror the composition of the index as
closely as possible, while at the same time trying to keep transaction
costs at a minimum. Generally, variances in performance relative to
the index are a function of fund expenses, transaction costs, and
minor differences in portfolio composition relative to that of the
index. All of these variables will have less of an impact on
performance as the Fund grows in size.
[GRAPHIC OMITTED: TOP INDUSTRIES]
Top Industries
(% of Portfolio)
Financials 19.1%
Information Technology 15.3%
Health Care 12.7%
Consumer Staples 10.9%
Consumer Discretionary 10.5%
Industrials 10.1%
Energy 5.8%
Communications Services 3.3%
Utilities 2.8%
Materials 2.7%
Top 10 Holdings
(% of Portfolio)
General Electric Company 2.8%
Microsoft Corporation 2.5%
Exxon Mobil Corporation 2.5%
Pfizer, Inc. 2.5%
Citigroup, Inc. 2.2%
Wal-Mart Stores, Inc. 2.2%
American International Group, Inc. 1.7%
Intel Corporation 1.5%
Bank of America Corporation 1.5%
Johnson & Johnson 1.4%
These common stocks represent 20.8% of the total investment portfolio.
Footnotes read:
Quoted Fund performance is for Class A shares and does not reflect a
sales charge.
The returns shown do not reflect taxes a shareholder would pay on
distributions or redemptions.
Quoted Top Industries, Portfolio Composition and Top 10 Holdings are
subject to change.
The list of Top 10 Holdings excludes short term investments and
collateral held for securities loaned.
Outlook
Our near-term outlook for U.S. stocks remains positive. Economic
growth and corporate profits appear strong, hiring is picking up, and
consumer and business spending is brisk. As the economy heats up,
however, inflation may resurge, prompting the Federal Reserve to push
up interest rates. Higher interest rates are an expense for businesses
and consumers that could brake economic growth, cut into profits, and
slow stock price gains.
Portfolio Facts
As of April 30, 2004
A Share B Share
------------------ ------------------
Ticker AALCX BLCIX
Transfer Agent ID 031 081
Net Assets $51,153,068 $6,360,543
NAV $7.61 $7.44
NAV -- High+ 2/11/2004 -- $7.94 2/11/2004 -- $7.78
NAV -- Low+ 5/1/2003 -- $6.29 5/1/2003 -- $6.15
Number of Holdings: 500 + For the year ended April 30, 2004
[GRAPHIC WORM CHART OMITTED: VALUE OF A $10,000 INVESTMENT]
Value of a $10,000 Investment
Class A Shares*/1/
The AAL Consumer
Large Company S&P 500 Price
Date Index Fund II Index*** Index**
- ------------------------------------------------------------------------
July 1, 2000 9,450 10,000 10,000
2000 9,270 9,743 10,017
2000 9,828 10,348 10,029
2000 9,299 9,802 10,081
2000 9,223 9,761 10,099
2000 8,477 8,991 10,104
2000 8,514 9,035 10,099
2001 8,779 9,356 10,163
2001 7,966 8,503 10,203
2001 7,456 7,964 10,226
2001 8,023 8,583 10,267
2001 8,061 8,640 10,313
2001 7,853 8,430 10,331
2001 7,768 8,347 10,302
2001 7,277 7,825 10,302
2001 6,691 7,193 10,348
2001 6,804 7,330 10,313
2001 7,305 7,892 10,296
2001 7,362 7,961 10,255
2002 7,248 7,845 10,279
2002 7,106 7,694 10,319
2002 7,362 7,983 10,377
2002 6,917 7,499 10,435
2002 6,851 7,444 10,435
2002 6,360 6,914 10,441
2002 5,878 6,375 10,453
2002 5,916 6,417 10,488
2002 5,283 5,720 10,505
2002 5,736 6,223 10,531
2002 6,057 6,589 10,531
2002 5,703 6,202 10,508
2003 5,551 6,040 10,554
2003 5,466 5,949 10,636
2003 5,494 6,007 10,700
2003 5,978 6,501 10,676
2003 6,282 6,843 10,659
2003 6,367 6,931 10,671
2003 6,472 7,053 10,682
2003 6,595 7,190 10,723
2003 6,519 7,114 10,758
2003 6,889 7,517 10,746
2003 6,946 7,583 10,717
2003 7,299 7,980 10,705
2004 7,433 8,126 10,758
2004 7,538 8,239 10,816
2004 7,423 8,115 10,885
April 30, 2004 $7,299 $7,988 $10,920
Average Annual Total Returns/1/
As of April 30, 2004
From
Inception
Class A/2/ 1-Year 7/1/2000
- ----------------------------------------------------------------
without sales charge 22.09% (6.53)%
with sales charge 15.32% (7.89)%
From
Inception
Class B/2/ 1-Year 7/1/2000
- ----------------------------------------------------------------
without sales charge 20.98% (7.44)%
with sales charge 16.98% (7.92)%
Footnotes read:
* As you compare performance, please note that the Fund's
performance reflects the maximum 5.5% sales charge,
while the Consumer Price Index and the S&P 500 Index do
not reflect any such charges. If you were to purchase
any of the above individual stocks or funds represented
in these Indexes, any charges you would pay would
reduce your total return as well.
** The Consumer Price Index is an inflationary indicator that
measures the change in the cost of a fixed basket of
products and services, including housing, electricity,
food and transportation. It is not possible to invest
directly in the Index.
*** The S&P 500 Index is an index that represents the average
performance of a group of 500 large-capitalization
stocks. "S&P 500(registered trademark)" is a trademark
of The McGraw-Hill Companies, Inc. and has been
licensed for use by Thrivent Financial for Lutherans.
The product is not sponsored, endorsed or promoted by
Standard & Poor's and Standard & Poor's makes no
representation regarding the advisability of investing
in the product. Index funds are subject to the same
market risks associated with the stocks in their
respective indexes. It is not possible to invest
directly in the Index. The performance of the Index
does not reflect deductions for fees, expenses or
taxes.
/1/ Past performance is not an indication of future results.
Annualized total returns represent past performance and
reflect changes in share prices, the reinvestment of
all dividends and capital gains, and the effects of
compounding. Investment return and principal value will
fluctuate, and shares, when redeemed, may be worth more
or less than their original cost. Current performance
may be lower or higher than the performance data
quoted. Call 800-THRIVENT or visit www.thrivent.com for
more current performance results. At various times, the
Fund's adviser waived its management fee and/or
reimbursed Fund expenses. Had the adviser not done so,
the Fund's total returns would have been lower. The
returns shown do not reflect taxes a shareholder would
pay on distributions or redemptions. The prospectus
contains more complete information on the objectives,
risks, charges and expenses of the investment company
which investors should read and consider carefully
before investing. Please read your prospectus
carefully.
/2/ Class A performance has been restated to reflect the maximum sales
charge of 5.5%. Class B performance reflects the
maximum contingent deferred sales charge (CDSC) of 5%,
declining 1% each year during the first five years and
then converting to Class A shares after the fifth year.
The AAL Equity Income Fund
[LOGO OMITTED: THRIVENT INVESTMENT MANAGEMENT TRADEMARK]
Thrivent Investment Management Inc.
The AAL Equity Income Fund seeks current income, long-term income
growth and capital growth by investing primarily in a diversified
portfolio of income-producing equity securities.
While low-quality stocks were the stars of the period, most large-cap
investors realized outstanding returns during the 12-month period
ended April 30, 2004. During this period, The AAL Equity Income Fund
produced a 24.51% total return. During the same period, its Lipper
Inc. peer group produced a median return of 24.37%. Meanwhile, the
Fund's previous market benchmark, the S&P 500/Barra Value Index
returned 27.91%, while its current benchmark, the Russell 1000 Value
Index, returned 26.27%. Because the Russell 1000 Value Index is a
more accurate reflection of the companies in which the Fund invests,
it will be used to compare performance of the Fund, rather than the
S&P 500/Barra Value Index.
Low Quality, High Returns
The AAL Equity Income Fund produced strong returns during the 12-month
period despite the fact that market conditions were less than ideal in
relation to the Fund's risk profile. While much of the market enjoyed
a vigorous rally in 2003, low quality stocks were clearly the biggest
winners.
Due to the inherent high risks associated with such stocks, most
institutional investors -- including the AAL Equity Income Fund --
rarely incorporate these low-quality names into their portfolios.
However, despite often trading at levels consistent with companies on
the verge of bankruptcy, these lower-quality stocks can offer a higher
reward (though perhaps not warranted based on valuations) during the
early stages of an economic recovery. Much of last year offered the
perfect environment for just such a scenario.
Over a reasonable time horizon, though, we strongly believe that
higher-quality stocks can offer significant growth without the
substantial risk associated with lower-quality alternatives, which can
often decline as spectacularly as they rally.
The final months of the period offered evidence of this as the
situation reversed and lower quality stocks dipped. Since then,
higher-quality stocks have enjoyed a resurgence as more traditional
market indicators such as quality and valuations are guiding a more
rational rise and fall of stocks. Consistent with this,the Fund picked
up performance in the final months of the period.
Favorable fundamentals led us to a strategic overweighting in the
materials sector, which reaped the benefits of an exceptional steel
market throughout much of the period. Sustainability concerns then led
us to sell off all of our holdings by April, before the materials
market dropped significantly. In addition, the Fund benefited from the
strong performance of the energy sector (oil and natural gas) and
health care (pharmaceuticals). An underweighted position in the
consumer discretionary sector-department stores, in particular-and
financials negatively affected the Fund's performance.
[GRAPHIC OMITTED: TOP INDUSTRIES]
Top Industries
(% of Portfolio)
Financials 27.8%
Consumer Discretionary 11.9%
Energy 11.0%
Industrials 10.7%
Information Technology 7.7%
Consumer Staples 6.9%
Health Care 6.4%
Materials 4.7%
Communications Services 4.3%
Utilities 3.5%
Top 10 Holdings
(% of Portfolio)
Citigroup, Inc. 3.6%
Bank of America Corporation 2.8%
Exxon Mobil Corporation 2.6%
ConocoPhillips Company 2.1%
J.P. Morgan Chase & Company 1.6%
American International Group, Inc. 1.6%
Wells Fargo & Company 1.5%
Time Warner, Inc. 1.4%
ChevronTexaco Corporation 1.4%
Tyco International, Ltd. 1.3%
These common stocks represent 19.9% of the total investment portfolio.
Footnotes read:
Quoted Fund performance is for Class A shares and does not reflect a
sales charge.
The returns shown do not reflect taxes a shareholder would pay on
distributions or redemptions.
Quoted Top Industries, Portfolio Composition and Top 10 Holdings are
subject to change.
The list of Top 10 Holdings excludes short term investments and
collateral held for securities loaned.
Outlook
The period in which smaller-cap stocks have enjoyed the upper hand,
seemingly regardless of quality and valuations, appears ready for a
reversal. Large-cap stocks should benefit from the return to
prominence of valuations and quality and provide solid growth through
the coming months.
Corporate profits continue to be on the rise, as fourth quarter
earnings were solid. We believe this trend should continue through
2004 and will lead toward more capital spending and investment by
corporations. These factors will be key to sustaining an economic
recovery and are crucial for the market to continue to move higher. At
this point, stocks as a whole appeared to be fully valued,
anticipating more positive news on the economic front.
Portfolio Facts
As of April 30, 2004
A Share B Share Institutional Share
------------------ ------------------ -------------------
Ticker AAUTX BBEIX N/A
Transfer Agent ID 022 072 092
Net Assets $239,401,621 $7,497,192 $13,731,455
NAV $12.60 $12.50 $12.64
NAV -- High+ 3/5/2004 -- $13.16 3/5/2004 -- $13.07 3/5/2004 -- $13.18
NAV -- Low+ 5/1/2003 -- $10.18 5/1/2003 -- $10.15 5/1/2003 -- $10.20
Number of Holdings: 143 + For the year ended April 30, 2004
[GRAPHIC WORM CHART OMITTED: VALUE OF A $10,000 INVESTMENT]
Value of a $10,000 Investment
Class A Shares*/1/
Russell
The AAL S&P 1000 Consumer
Equity 500/Barra Value Price
Date Income Fund Value Index*** Index** Index****
- --------------------------------------------------------------------------
April 30, 2004 9,450 10,000 10,000 10,000
1994 9,241 9,803 10,116 10,055
1994 9,023 9,532 9,873 10,089
1994 9,281 9,854 10,181 10,116
1994 9,291 10,133 10,474 10,157
1994 9,032 9,776 10,127 10,184
1994 9,129 9,989 10,268 10,191
1994 8,994 9,584 9,854 10,205
1994 8,820 9,702 9,968 10,205
1995 9,190 9,964 10,275 10,245
1995 9,180 10,351 10,682 10,286
1995 9,112 10,637 10,917 10,320
1995 9,309 10,987 11,262 10,354
1995 9,780 11,475 11,735 10,375
1995 9,849 11,563 11,262 10,395
1995 9,958 11,961 12,308 10,395
1995 9,998 12,063 12,482 10,423
1995 10,582 12,483 12,933 10,443
1995 10,722 12,288 12,805 10,477
1995 10,872 12,932 13,454 10,470
1995 11,392 13,291 13,792 10,464
1996 11,614 13,689 14,222 10,525
1996 11,342 13,817 14,665 10,559
1996 11,241 14,141 14,915 10,613
1996 11,068 14,285 14,972 10,654
1996 11,099 14,500 15,159 10,675
1996 11,475 14,430 15,171 10,682
1996 10,932 13,821 14,598 10,702
1996 10,922 14,203 15,016 10,723
1996 10,953 14,811 15,613 10,757
1996 11,377 15,313 16,216 10,791
1996 11,801 16,484 17,392 10,811
1996 11,940 16,215 17,170 10,811
1997 12,065 16,963 18,002 10,845
1997 12,138 17,086 18,267 10,879
1997 11,773 16,501 17,610 10,907
1997 11,941 17,119 18,350 10,920
1997 12,594 18,193 19,375 10,913
1997 12,978 18,888 20,206 10,927
1997 13,222 20,399 21,727 10,941
1997 12,702 19,478 20,953 10,961
1997 13,371 20,620 22,219 10,988
1997 13,232 19,862 21,598 11,016
1997 13,958 20,619 22,553 11,009
1997 14,611 21,077 23,211 10,995
1998 14,489 20,817 22,883 11,016
1998 15,189 22,378 24,423 11,036
1998 15,941 23,512 25,917 11,057
1998 15,952 23,790 26,090 11,077
1998 15,707 23,455 25,704 11,097
1998 16,048 23,633 26,033 11,111
1998 15,746 23,120 25,574 11,125
1998 13,543 19,402 21,768 11,138
1998 14,388 20,581 23,017 11,152
1998 15,286 22,193 24,800 11,179
1998 15,858 23,349 25,956 11,179
1998 16,552 24,169 26,839 11,172
1999 16,636 24,658 27,053 11,200
1999 16,385 24,127 26,672 11,213
1999 16,592 24,858 27,224 11,247
1999 17,561 27,001 29,766 11,329
1999 17,345 26,524 29,439 11,329
1999 17,880 27,543 30,294 11,329
1999 17,364 26,696 29,406 11,363
1999 16,849 26,020 28,315 11,391
1999 16,481 25,001 27,326 11,445
1999 16,914 26,413 28,898 11,466
1999 16,890 26,258 28,672 11,472
1999 17,229 27,245 28,811 11,472
2000 16,699 26,378 27,871 11,500
2000 16,482 24,730 26,962 11,568
2000 17,723 27,308 30,252 11,663
2000 17,420 27,125 29,899 11,670
2000 17,747 27,210 30,215 11,677
2000 17,150 26,135 28,834 11,745
2000 17,223 26,658 29,195 11,766
2000 18,243 28,446 30,819 11,779
2000 18,379 28,439 31,101 11,841
2000 18,403 28,970 31,866 11,861
2000 17,733 27,487 30,683 11,868
2000 18,867 28,902 32,220 11,861
2001 18,983 30,122 32,344 11,936
2001 18,571 28,126 31,445 11,984
2001 17,862 27,015 30,333 12,011
2001 18,859 28,848 31,821 12,059
2001 19,027 29,150 32,536 12,113
2001 17,960 28,206 31,814 12,134
2001 17,804 27,718 31,747 12,100
2001 17,075 26,116 30,475 12,100
2001 15,861 23,635 28,330 12,154
2001 16,109 23,635 28,087 12,113
2001 17,011 25,135 29,719 12,093
2001 17,332 25,517 30,419 12,045
2002 16,939 24,817 30,185 12,072
2002 16,690 24,595 30,233 12,120
2002 17,474 25,855 31,663 12,188
2002 16,923 24,560 30,577 12,256
2002 16,897 24,658 30,731 12,256
2002 15,770 23,104 28,966 12,263
2002 14,441 20,606 26,274 12,277
2002 14,507 20,748 26,472 12,318
2002 13,008 18,380 23,528 12,338
2002 13,193 19,905 25,272 12,369
2002 13,800 21,301 26,864 12,369
2002 13,156 20,195 25,697 12,342
2003 12,839 19,644 25,075 12,396
2003 12,548 19,108 24,406 12,492
2003 12,550 19,083 24,447 12,567
2003 13,505 20,969 26,599 12,540
2003 14,301 22,510 28,316 12,519
2003 14,496 22,675 28,670 12,533
2003 14,708 23,179 29,097 12,546
2003 15,001 23,679 29,550 12,594
2003 14,818 23,251 29,262 12,635
2003 15,617 24,840 31,053 12,621
2003 15,776 25,062 31,474 12,587
2003 16,722 26,609 33,414 12,574
2004 16,949 27,080 34,002 12,635
2004 17,310 27,691 34,730 12,703
2004 17,176 27,499 34,426 12,785
April 30, 2004 $16,816 $26,821 $32,138 $12,826
Average Annual Total Returns/1/
As of April 30, 2004
From
Inception
Class A/2/ 1-Year 5-Year 3/18/1994
- ----------------------------------------------------------------
without sales charge 24.51% (0.86)% 5.80%
with sales charge 17.69% (1.97)% 5.22%
From
Inception
Class B/2/ 1-Year 5-Year 1/8/1997
- ----------------------------------------------------------------
without sales charge 23.03% (1.90)% 4.11%
with sales charge 19.03% (1.90)% 4.11%
From
Inception
Institutional Class/3/ 1-Year 5-Year 12/29/1997
- ----------------------------------------------------------------
Net Asset Value 25.16% (0.37)% 2.86%
Footnotes read:
* As you compare performance, please note that the Fund's
performance reflects the maximum 5.5% sales charge,
while the Russell 1000 Value Index, the S&P 500/Barra
Value Index and the Consumer Price Index do not reflect
any such charges. If you were to purchase any of the
above individual stocks or funds represented in these
Indexes, any charges you would pay would reduce your
total return as well.
** The Russell 1000 Value Index is an index comprised of companies
with lower price-to-book ratios and lower forecasted
growth rates within the Russell 1000 Index. It is not
possible to invest directly in these Indexes. The
performance of these Indexes does not reflect
deductions for fees, expenses or taxes. The composition
of the Russell 1000 Value Index serves as a better
reflection of the Fund's current investment strategy
than does the S&P 500/Barra Value Index.
*** The S&P 500/Barra Value Index is an capitalization-weighted index
comprised of the lowest price-to-book ratio securities
in the S&P 500 Index. The S&P 500/Barra Value Index is
designed so that approximately one-half of the S&P 500
market capitalization is characterized as "value" and
the other half as "growth." It is not possible to
invest directly in these Indexes. The performance of
these Indexes does not reflect deductions for fees,
expenses or taxes.
**** The Consumer Price Index is an inflationary indicator that
measures the change in the cost of a fixed basket of
products and services, including housing, electricity,
food and transportation. It is not possible to invest
directly in the Index.
/1/ Past performance is not an indication of future results.
Annualized total returns represent past performance and
reflect changes in share prices, the reinvestment of
all dividends and capital gains, and the effects of
compounding. Investment return and principal value will
fluctuate, and shares, when redeemed, may be worth more
or less than their original cost. Current performance
may be lower or higher than the performance data
quoted. Call 800-THRIVENT or visit www.thrivent.com for
more current performance results. At various times, the
Fund's adviser waived its management fee and/or
reimbursed Fund expenses. Had the adviser not done so,
the Fund's total returns would have been lower. The
returns shown do not reflect taxes a shareholder would
pay on distributions or redemptions. The prospectus
contains more complete information on the objectives,
risks, charges and expenses of the investment company
which investors should read and consider carefully
before investing. Please read your prospectus
carefully.
/2/ Class A performance has been restated to reflect the maximum
sales charge of 5.5%. Class B performance reflects the
maximum contingent deferred sales charge (CDSC) of 5%,
declining 1% each year during the first five years and
then converting to Class A shares after the fifth year.
/3/ Institutional Class shares have no sales load and are for
institutional shareholders only.
The AAL Balanced Fund
[PHOTO OMITTED: FREDERICK L. PLAUTZ AND ALAN D. ONSTAD]
Frederick L. Plautz (left) and Alan D. Onstad (right), Portfolio
Co-Managers
The AAL Balanced Fund seeks long-term total return through a balance
between income and the potential for long-term capital growth by
investing primarily in a diversified portfolio of common stocks, bonds
and money market instruments.
For the 12-month period ended April 30, 2004, The AAL Balanced Fund
generated a total return of 10.22% compared to returns of 22.87% for
the S&P 500 Index and 1.82% for the Lehman U.S. Aggregate Bond Index,
and a median return of 14.80% for its Lipper Inc. peer group of
similar funds. With benchmark interest rates at a 46-year low, the
equity market generally prospered while bond yields rose in
anticipation of higher inflation and tighter monetary policy. Below is
a look at the economic climate that existed during the reporting
period and the Fund's performance during this time.
Speculative Fever
For most of the reporting period, strength in the U.S. equity market
was concentrated in lower-quality and speculative stocks, including
those in the still-pricey technology sector. Beginning in February
2004, however, many investors began to take profits from riskier areas
of the market and move proceeds into more liquid, less expensive
issues. The catalyst for the abrupt shift in sentiment was the release
of data indicating that the U.S. labor market was finally reviving
after a prolonged period of subpar growth. Since the employment
picture was the last missing piece of the recovery puzzle, investors
concluded that the Federal Reserve Board would soon move to end the
period of exceptionally cheap credit. Typically, periods of rising
interest rates undermine lower-quality stocks while bolstering demand
for reasonably priced larger-capitalization companies with
above-average financial strength.
The Fund's Performance
Relative performance of the Fund's equity holdings reflected the
changing nature of investor preferences. Our philosophy is to stick
with liquid, high-quality and reasonably priced stocks through all
market environments. Naturally, that approach severely undermined
relative returns over the first nine months of the reporting period as
speculative stocks outperformed.
We were particularly surprised that technology stocks rebounded so
quickly after the bursting of the tech bubble. Relative performance
improved over the final three months as investor appetite for quality
returned. However, the magnitude of Fund outperformance during that
late period fell far short of what was necessary to match our equity
benchmark over the entire reporting period.
[GRAPHIC OMITTED: TOP INDUSTRIES]
Top Industries
(% of Portfolio)
Financials 16.0%
Consumer Discretionary 9.8%
Mortgage-Backed Securities 8.3%
Information Technology 7.7%
Consumer Staples 6.3%
Health Care 5.9%
Industrials 5.0%
Energy 4.6%
Asset-Backed Securities 3.3%
Communications Services 3.3%
Top 10 Holdings
(% of Portfolio)
Federal National Mortgage Association 4.2%
Federal National Mortgage Association 4.2%
Walgreen Company 1.8%
American International Group, Inc. 1.8%
Cox Communications, Inc. 1.7%
Altria Group, Inc. 1.6%
Pfizer, Inc. 1.6%
Microsoft Corporation 1.6%
Comcast Corporation 1.5%
Citigroup, Inc. 1.5%
These common stocks and long term fixed income securities represent
21.5% of the total investment portfolio.
Footnotes read:
Quoted Fund performance is for Class A shares and does not reflect a
sales charge.
The returns shown do not reflect taxes a shareholder would pay on
distributions or redemptions.
Quoted Top Industries, Portfolio Composition and Top 10 Holdings are
subject to change.
Top Industries represent long term non-government holdings.
The list of Top 10 Holdings excludes short term investments and
collateral held for securities loaned.
Corporates lead Treasuries
Robust economic growth caused interest rates to rise over the
reporting period, with the Treasury and agency sectors bearing the
brunt of the increase. Meanwhile, corporate bonds fared better as
investors grew more confident about the outlook for corporate profits.
In general, though, it was a volatile environment for the fixed-income
market as investors discounted higher benchmark interest rates from
the Federal Reserve.
The relative performance of the Fund's fixed-income investments
benefited from a significant overweighted position in corporate debt,
especially those issues at the lower end of the investment-grade
category. Late in the reporting period, we began taking profits in
that sector and moving proceeds into oversold government bonds in
anticipation of a more problematic economic environment over the
remainder of the year.
Outlook
With the U.S. economy displaying signs of overheating, it is only a
matter of time before the Federal Reserve begins raising interest
rates. As liquidity is gradually withdrawn from the financial system,
we expect higher-quality stocks and bonds to benefit relative to their
lower quality counterparts. In addition to rising interest rates,
economic growth could be adversely impacted by high energy prices,
which drain money from household budgets. Overseas, a growth slowdown
or recession in China and continued geopolitical jitters in the Middle
East also could function as a brake on domestic economic activity.
Portfolio Facts
As of April 30, 2004
A Share B Share Institutional Share
------------------ ------------------ -------------------
Ticker AABFX BBBFX IBBFX
Transfer Agent ID 026 085 056
Net Assets $277,955,229 $18,630,111 $111,158,412
NAV $11.65 $11.60 $11.64
NAV -- High+ 3/5/2004 -- $12.10 3/5/2004 -- $12.03 3/5/2004 -- $12.09
NAV -- Low+ 5/1/2003 -- $10.74 5/1/2003 -- $10.69 5/1/2003 -- $10.73
Number of Holdings: 438 + For the year ended April 30, 2004
[GRAPHIC WORM CHART OMITTED: VALUE OF A $10,000 INVESTMENT]
Value of a $10,000 Investment
Class A Shares*/1/
Lehman
The AAL Brothers Consumer
Balanced S&P 500 Aggregate Price
Date Fund Index*** Bond Index** Index****
- ------------------------------------------------------------------------------
December 29, 1997 9,450 10,000 10,000 10,000
1997 9,450 10,180 10,008 9,988
1998 9,507 10,293 10,136 10,006
1998 9,932 11,035 10,129 10,025
1998 10,175 11,599 10,164 10,043
1998 10,241 11,716 10,217 10,062
1998 10,099 11,515 10,314 10,080
1998 10,502 11,982 10,401 10,093
1998 10,426 11,855 10,423 10,105
1998 9,569 10,143 10,593 10,118
1998 10,024 10,793 10,841 10,130
1998 10,416 11,670 10,783 10,155
1998 10,722 12,377 10,845 10,155
1998 11,155 13,090 10,877 10,149
1999 11,481 13,637 10,955 10,173
1999 11,270 13,213 10,764 10,186
1999 11,519 13,742 10,823 10,217
1999 11,721 14,274 10,858 10,291
1999 11,548 13,937 10,762 10,291
1999 11,829 14,710 10,728 10,291
1999 11,655 14,251 10,683 10,322
1999 11,499 14,180 10,677 10,347
1999 11,489 13,792 10,801 10,396
1999 11,908 14,664 10,841 10,415
1999 12,065 14,963 10,840 10,421
1999 12,378 15,844 10,788 10,421
2000 12,024 15,048 10,753 10,446
2000 11,877 14,763 10,883 10,508
2000 12,489 16,207 11,026 10,594
2000 12,281 15,720 10,994 10,601
2000 12,271 15,397 10,989 10,607
2000 12,552 15,777 11,218 10,669
2000 12,482 15,530 11,320 10,687
2000 12,811 16,494 11,484 10,700
2000 12,592 15,624 11,556 10,755
2000 12,743 15,558 11,633 10,774
2000 12,522 14,331 11,823 10,780
2000 12,788 14,401 12,042 10,774
2001 12,808 14,912 12,239 10,842
2001 12,525 13,552 12,346 10,885
2001 12,295 12,694 12,408 10,910
2001 12,662 13,680 12,356 10,954
2001 12,621 13,772 12,431 11,003
2001 12,381 13,437 12,478 11,022
2001 12,371 13,305 12,757 10,991
2001 12,011 12,472 12,903 10,991
2001 11,654 11,465 13,053 11,040
2001 11,933 11,683 13,326 11,003
2001 12,316 12,579 13,143 10,985
2001 12,402 12,690 13,059 10,941
2002 12,319 12,505 13,165 10,966
2002 12,194 12,263 13,292 11,009
2002 12,361 12,725 13,071 11,071
2002 12,027 11,953 13,325 11,133
2002 12,027 11,865 13,438 11,133
2002 11,536 11,020 13,554 11,139
2002 11,053 10,161 13,718 11,152
2002 11,148 10,228 13,949 11,189
2002 10,504 9,117 14,175 11,207
2002 11,011 9,919 14,110 11,235
2002 11,264 10,502 14,106 11,235
2002 10,993 9,886 14,398 11,211
2003 10,877 9,627 14,411 11,260
2003 10,877 9,482 14,610 11,347
2003 10,927 9,574 14,598 11,415
2003 11,438 10,363 14,719 11,390
2003 11,842 10,908 14,993 11,372
2003 11,853 11,047 14,963 11,384
2003 11,821 11,242 14,460 11,397
2003 11,949 11,461 14,556 11,440
2003 11,991 11,340 14,941 11,477
2003 12,281 11,981 14,802 11,465
2003 12,292 12,086 14,837 11,434
2003 12,636 12,720 14,988 11,421
2004 12,809 12,953 15,109 11,477
2004 12,916 13,133 15,272 11,539
2004 12,813 12,935 15,387 11,613
April 30, 2004 $12,607 $12,732 $14,987 $11,651
Average Annual Total Returns/1/
As of April 30, 2004
From
Inception
Class A/2/ 1-Year 5-Year 12/29/1997
- ----------------------------------------------------------------
without sales charge 10.22% 1.47% 4.65%
with sales charge 4.12% 0.32% 3.72%
From
Inception
Class B/2/ 1-Year 5-Year 12/29/1997
- ----------------------------------------------------------------
without sales charge 9.22% 0.55% 3.92%
with sales charge 5.22% 0.55% 3.92%
From
Inception
Institutional Class/3/ 1-Year 5-Year 12/29/1997
- ----------------------------------------------------------------
Net Asset Value 10.75% 1.92% 5.03%
Footnotes read:
* As you compare performance, please note that the Fund's
performance reflects the maximum 5.5% sales charge,
while the Lehman Brothers Aggregate Bond Index, the S&P
500 Index and the Consumer Price Index do not reflect
any such charges. If you were to purchase any of the
above individual stocks or funds represented in these
Indexes, any charges you would pay would reduce your
total return as well.
** The Lehman Brothers Aggregate Bond Index is an index that
measures the performance of U.S. investment grade
bonds. It is not possible to invest directly in the
Index. The performance of the Index does not reflect
deductions for fees, expenses or taxes.
*** The S&P 500 Index is an index that represents the average
performance of a group of 500 large-capitalization
stocks. It is not possible to invest directly in the
Index. The performance of the Index does not reflect
deductions for fees, expenses or taxes.
**** The Consumer Price Index is an inflationary indicator that
measures the change in the cost of a fixed basket of
products and services, including housing, electricity,
food and transportation. It is not possible to invest
directly in the Index.
/1/ Past performance is not an indication of future results.
Annualized total returns represent past performance and
reflect changes in share prices, the reinvestment of
all dividends and capital gains, and the effects of
compounding. Investment return and principal value will
fluctuate, and shares, when redeemed, may be worth more
or less than their original cost. Current performance
may be lower or higher than the performance data
quoted. Call 800-THRIVENT or visit www.thrivent.com for
more current performance results. At various times, the
Fund's adviser waived its management fee and/or
reimbursed Fund expenses. Had the adviser not done so,
the Fund's total returns would have been lower. The
returns shown do not reflect taxes a shareholder would
pay on distributions or redemptions. The prospectus
contains more complete information on the objectives,
risks, charges and expenses of the investment company
which investors should read and consider carefully
before investing. Please read your prospectus
carefully.
/2/ Class A performance has been restated to reflect the maximum
sales charge of 5.5%. Class B performance reflects the
maximum contingent deferred sales charge (CDSC) of 5%,
declining 1% each year during the first five years and
then converting to Class A shares after the fifth year.
/3/ Institutional Class shares have no sales load and are for
institutional shareholders only.
The AAL High Yield Bond Fund
[LOGO OMITTED: PACIFIC INVESTMENT MANAGEMENT COMPANY]
Pacific Investment Management Company, LLC, Portfolio Subadviser
The AAL High Yield Bond Fund seeks high current income and secondary
capital growth by investing primarily in a diversified portfolio of
high-risk, high-yield bonds commonly referred to as "junk bonds."* The
Fund actively seeks to achieve the secondary objective of capital
growth to the extent it is consistent with the primary objective of
high current income.
Effective June 1, 2004, the subadvisory agreement was terminated and
Thrivent Investment Management Inc. has assumed the responsibility for
advisory services.
The high-yield bond market finished the 12 months ended April 30,
2004, on a high note, despite a deceleration over the final three
months. The AAL High Yield Bond Fund provided a 12.08% total return
for the period, while its Lipper Inc. peer group of similar high-yield
bond funds posted a 13.61% median return. The Fund's unmanaged
benchmark, the Merrill Lynch U.S. High Yield Cash Pay Index,
registered a 14.34% total return.
Improving credit fundamentals and large cash flows into high-yield
bonds boosted performance from 2002 lows and powered a rally in 2003.
Default rates, which began falling from a peak in the last quarter of
2002, continued descending through April 2004 to below their 10-year
average. The top-performing industry was air transportation, which
rebounded from a trough caused in part by SARS, the war in Iraq, and
terrorism. Also leading the overall market were insurance, non-air
transportation, and consumer products. Weighing down the market were
textiles, publishing/printing, and leisure sectors. Lower-quality
bonds led performance, as CCC and lower-rated issues more than doubled
the returns of both the BB and B-rated sectors.
Lower-Quality Bonds Provided Higher Returns
The Fund's exposure to BBB-rated issues hampered performance relative
to our benchmark, as below-investment-grade tiers outperformed. An
underweighting in the transportation industry, while a positive in
recent months as airlines suffered high fuel prices, was a negative
over the entire period as the sector led the market. Similarly, an
underweighting in the outperforming consumer products sector also
hindered relative performance. The Fund's performance was helped by an
overweighting in utilities and an underweighting in health care. Our
modest exposure to emerging market sovereign debt detracted slightly
from performance -- despite last year's strong rally -- due to the
recent sell-off in the asset class.
[GRAPHIC OMITTED: TOP INDUSTRIES]
Top Industries
(% of Portfolio)
Communications Services 22.1%
Utilities 15.3%
Consumer Cyclical 10.0%
Consumer Non-Cyclical 6.4%
Foreign 5.7%
Capital Goods 5.6%
Financials 4.5%
Basic Materials 4.2%
Energy 4.2%
Transportation 1.6%
[GRAPHIC OMITTED: RATINGS DISTRIBUTIONS]
Moody's Bond Quality
Ratings Distributions
Aaa 1.1%
Aa 0.0%
A 5.8%
Baa 2.3%
Ba 24.8%
B 50.2%
Caa 15.2%
Ca 0.0%
C 0.0%
D 0.6%
Not Rated 0.0%
Footnotes read:
*High-yield bonds carry greater volatility and risk than
investment-grade bonds.
Quoted Fund performance is for Class A shares and does not reflect a
sales charge.
The returns shown do not reflect taxes a shareholder would pay on
distributions or redemptions.
Quoted Top Industries, Portfolio Composition and Moody's Bond Quality
Ratings Distributions are subject to change.
Outlook
Credit fundamentals continue to improve as reflected by lower default
rates, escalating upgrade-to-downgrade ratios, and ever-increasing
balance sheet repair. While credit trends are improving, the first
stages of underwriting deterioration are beginning to emerge such as
aggressive structuring, dividend deals, and reduced call protection.
Valuations have improved with the slight sell-off in high yield
year-to-date. Going forward, we believe credit fundamentals will
continue to improve. The pace of high-yield performance will likely
continue to slow until fundamentals are accurately reflected by
valuations. We will continue to keep the Fund well diversified by
investing in bonds of many issuers in a variety of industries.
Portfolio Facts
As of April 30, 2004
A Share B Share Institutional Share
------------------ ------------------ -------------------
Ticker AAHYX BBHYX N/A
Transfer Agent ID 025 075 095
Net Assets $135,079,010 $6,134,548 $3,819,724
NAV $6.54 $6.54 $6.54
NAV -- High+ 1/22/2004 -- $6.86 1/22/2004 -- $6.86 1/21/2004 -- $6.85
NAV -- Low+ 8/14/2003 -- $6.19 8/14/2003 -- $6.19 8/14/2003 -- $6.19
Number of Holdings: 244 + For the year ended April 30, 2004
[GRAPHIC WORM CHART OMITTED: VALUE OF A $10,000 INVESTMENT]
Value of a $10,000 Investment
Class A Shares**/1/
Merrill Lynch
The AAL High Yield Consumer
High Yield Cash Pay Price
Date Bond Fund Index*** Index****
- ------------------------------------------------------------------------
January 8, 1997 9,550 10,000 10,000
1997 9,593 10,108 10,032
1997 9,819 10,250 10,063
1997 9,553 10,136 10,088
1997 9,694 10,251 10,101
1997 10,002 10,458 10,095
1997 10,129 10,617 10,107
1997 10,396 10,872 10,120
1997 10,399 10,853 10,139
1997 10,643 11,033 10,164
1997 10,629 11,106 10,189
1997 10,722 11,211 10,183
1997 10,814 11,317 10,170
1998 10,985 11,486 10,189
1998 11,066 11,533 10,208
1998 11,142 11,633 10,227
1998 11,160 11,688 10,246
1998 11,161 11,769 10,265
1998 11,170 11,828 10,277
1998 11,187 11,895 10,290
1998 10,351 11,382 10,303
1998 10,303 11,405 10,315
1998 10,070 11,217 10,340
1998 10,602 11,728 10,340
1998 10,571 11,732 10,334
1999 10,675 11,848 10,359
1999 10,519 11,758 10,372
1999 10,558 11,859 10,404
1999 10,718 12,044 10,479
1999 10,533 11,961 10,479
1999 10,511 11,938 10,479
1999 10,500 11,956 10,511
1999 10,347 11,835 10,536
1999 10,150 11,789 10,586
1999 9,910 11,720 10,605
1999 10,037 11,854 10,612
1999 10,174 11,917 10,612
2000 10,112 11,857 10,637
2000 10,136 11,868 10,700
2000 9,963 11,702 10,788
2000 9,963 11,706 10,794
2000 9,791 11,577 10,801
2000 9,977 11,775 10,864
2000 9,895 11,860 10,883
2000 10,008 12,005 10,895
2000 9,834 11,935 10,952
2000 9,641 11,585 10,971
2000 9,362 11,222 10,977
2000 9,723 11,465 10,971
2001 10,179 12,149 11,040
2001 10,215 12,340 11,085
2001 10,012 12,177 11,110
2001 9,882 12,044 11,154
2001 9,941 12,276 11,204
2001 9,626 12,023 11,223
2001 9,786 12,210 11,192
2001 9,828 12,328 11,192
2001 9,308 11,537 11,242
2001 9,591 11,877 11,204
2001 9,799 12,263 11,185
2001 9,762 12,176 11,141
2002 9,799 12,244 11,166
2002 9,680 12,127 11,211
2002 9,772 12,415 11,274
2002 9,857 12,612 11,337
2002 9,766 12,544 11,337
2002 9,215 11,649 11,343
2002 8,720 11,189 11,356
2002 9,096 11,468 11,393
2002 8,856 11,292 11,412
2002 8,908 11,197 11,441
2002 9,526 11,867 11,441
2002 9,683 12,048 11,416
2003 9,942 12,395 11,466
2003 10,101 12,554 11,554
2003 10,327 12,880 11,624
2003 10,901 13,603 11,599
2003 11,037 13,747 11,580
2003 11,315 14,125 11,592
2003 11,189 13,923 11,605
2003 11,360 14,099 11,649
2003 11,615 14,482 11,687
2003 11,846 14,778 11,674
2003 11,949 14,981 11,643
2003 12,263 15,328 11,630
2004 12,386 15,567 11,687
2004 12,273 15,557 11,750
2004 12,331 15,667 11,826
April 30, 2004 $12,217 $15,554 $11,864
Average Annual Total Returns/1/
As of April 30, 2004
From
Inception
Class A/2/ 1-Year 5-Year 1/8/1997
- ----------------------------------------------------------------
without sales charge 12.08% 2.65% 3.43%
with sales charge 6.96% 1.71% 2.78%
From
Inception
Class B/2/ 1-Year 5-Year 1/8/1997
- ----------------------------------------------------------------
without sales charge 11.06% 1.84% 2.92%
with sales charge 7.06% 1.84% 2.92%
From
Inception
Institutional Class/3/ 1-Year 5-Year 12/29/1997
- ----------------------------------------------------------------
Net Asset Value 12.56% 3.03% 2.27%
Footnotes read:
** As you compare performance, please note that the Fund's
performance reflects the maximum 4.5% sales charge,
while the Merrill Lynch High Yield Cash Pay Index and
the Consumer Price Index do not reflect any such
charges. If you were to purchase any of the above
individual stocks or funds represented in these
Indexes, any charges you would pay would reduce your
total return as well.
*** The Merrill Lynch High Yield Cash Pay Index is an index comprised
of approximately 1,200 "cash pay" high yield bonds
representative of the high-yield market as a whole. It
is not possible to invest directly in the Index. The
performance of the Index does not reflect deductions
for fees, expenses or taxes.
**** The Consumer Price Index is an inflationary indicator that
measures the change in the cost of a fixed basket of
products and services, including housing, electricity,
food and transportation. It is not possible to invest
directly in the Index.
/1/ Past performance is not an indication of future results.
Annualized total returns represent past performance and
reflect changes in share prices, the reinvestment of
all dividends and capital gains, and the effects of
compounding. Investment return and principal value will
fluctuate, and shares, when redeemed, may be worth more
or less than their original cost. Current performance
may be lower or higher than the performance data
quoted. Call 800-THRIVENT or visit www.thrivent.com for
more current performance results. At various times, the
Fund's adviser waived its management fee and/or
reimbursed Fund expenses. Had the adviser not done so,
the Fund's total returns would have been lower. The
returns shown do not reflect taxes a shareholder would
pay on distributions or redemptions. The prospectus
contains more complete information on the objectives,
risks, charges and expenses of the investment company
which investors should read and consider carefully
before investing. Please read your prospectus
carefully.
/2/ Class A performance has been restated to reflect the maximum
sales charge of 4.5%. Class B performance reflects the
maximum contingent deferred sales charge (CDSC) of 5%,
declining 1% each year during the first five years and
then converting to Class A shares after the fifth year.
/3/ Institutional Class shares have no sales load and are for
institutional shareholders only.
The AAL Municipal Bond Fund
[PHOTO OMITTED: JANET I. GRANGAARD]
Janet I. Grangaard, Portfolio Manager
The AAL Municipal Bond Fund seeks a high level of current income
exempt from federal income taxes consistent with capital preservation
by investing primarily in a diversified portfolio of municipal bonds.*
The municipal bond market experienced modest gains in the 12-month
period ended April 30, 2004. Against a backdrop of record supply highs
in 2002 and the first quarter of 2004, The AAL Municipal Bond Fund
performed in line with its peer group, returning 2.34%. Its Lipper
Inc. peer group of funds produced a 1.94% median return during the
same period, while the Fund's benchmark, the Lehman Municipal Bond
Index, returned 2.67%.
Low Quality Soars High
Bolstered by continuing economic growth, non-investment-grade
municipal securities enjoyed amazing returns throughout the one-year
period. The airline sector, largely free of the debilitating
bankruptcy fears and war concerns of 2002 and early 2003, reaped the
biggest rewards as a result of this rally. In the third quarter of
2003, when it became clear that Americans were again taking to the
skies, airline bonds followed suit.
The Fund's underperformance relative to its Lehman Index is
attributable to these lower quality bonds. Like most institutional
investors, the AAL Municipal Bond Fund does not expose shareholders to
the risks associated with such low-quality names, which often reflect
companies with problematic balance sheets and little or no earnings.
In this case, this stance adversely affected the Fund's returns.
However, in the past and, we believe, over a long-term horizon, this
approach will produce returns consistent with the Fund's peers while
sheltering investors from the significant risk associated with
low-quality bonds.
Fortunately, the Fund benefited from a general tightening of spreads
between the typical municipal bond and risk-free treasury bonds and
was able to mitigate many of the effects of this low-quality rally. It
significantly outperformed its Lipper Inc. peer group through
overweighting BBB-rated securities. These medium-grade obligations
performed exceptionally well during the period. The Fund's exposure to
tobacco-settlement bonds, issued by different states involved in the
master settlement agreement, also aided performance as credit spreads
tightened and tobacco-settlement bonds rallied.
[GRAPHIC OMITTED: RATINGS DISTRIBUTIONS]
Moody's Bond Quality
Ratings Distributions
Aaa 51.6%
Aa 16.3%
A 13.0%
Baa 19.0%
Ba 0.1%
B 0.0%
Caa 0.0%
Ca 0.0%
C 0.0%
D 0.0%
Not Rated 0.0%
[GRAPHIC PIE CHART OMITTED: PORTFOLIO COMPOSITION (% OF PORTFOLIO)]
Portfolio Composition
(% of Portfolio)
General Obligation 16.7%
Health Care 14.9%
Escrowed/Pre-refunded 13.0%
Special Tax Revenue 10.1%
Housing Finance 9.4%
Electric Revenue 8.6%
Industrial Development Revenue 6.6%
Education 5.8%
Transportation 5.2%
Other Municipals 9.7%
Top 10 States
(% of Portfolio)
Texas 11.8%
New York 11.3%
California 10.8%
Illinois 10.4%
Colorado 5.8%
Washington 4.1%
Michigan 3.2%
Minnesota 3.2%
Florida 2.7%
Louisiana 2.4%
These long term fixed income securities represent 65.7% of the total
investment portfolio.
Footnotes read:
*Investors may be subject to state taxes and federal alternative
minimum tax.
Quoted Fund performance is for Class A shares and does not reflect a
sales charge.
The returns shown do not reflect taxes a shareholder would pay on
distributions or redemptions.
Quoted Moody's Bond Quality Ratings Distributions, Portfolio
Composition and Top 10 States are subject to change.
Outlook
We believe that economic growth will lead to stability and eventual
improvement in the creditworthiness of many issuers. Therefore, we
have been adding selected BAA-rated securities to the portfolio --
both for the yield advantage offered by lower rated names as well as
the potential performance rewards from risk-premium tightening.
We have added some California general obligation bonds, based on our
belief that California's challenges are more political than economic
in nature. If that is indeed the case, the Fund will eventually be
rewarded after some inevitable volatility.
It's likely that municipal bond supplies will drop in response to
rising rates and leave many states with significant bond shortages.
Our goal going forward is to own securities of some of those states so
we can feed bonds into the retail market at advantageous prices for
our shareholders, while we replace them with more plentiful options.
We will maintain a shorter duration for the Fund to mitigate the
effects of what appears to be an inevitable interest rate hike. We
will continue to manage the Fund with very little cash due to the
opportunity cost of holding cash in such a steep yield curve
environment.
With only modest risk, we believe the AAL Municipal Bond Fund remains
a high-quality investment, even as interest rates rise.
Portfolio Facts
As of April 30, 2004
A Share B Share Institutional Share
------------------ ------------------ -------------------
Ticker AAMBX N/A N/A
Transfer Agent ID 015 065 088
Net Assets $633,903,521 $13,173,127 $2,791,800
NAV $11.30 $11.29 $11.30
NAV -- High+ 6/13/2003 -- $11.90 6/13/2003 -- $11.89 6/13/2003 -- $11.90
NAV -- Low+ 8/14/2003 -- $11.19 8/14/2003 -- $11.18 8/14/2003 -- $11.19
Number of Holdings: 294 + For the year ended April 30, 2004
[GRAPHIC WORM CHART OMITTED: VALUE OF A $10,000 INVESTMENT]
Value of a $10,000 Investment
Class A Shares**/1/
Lehman
Brothers
The AAL Municipal Consumer
Municipal Bond Price
Date Bond Fund Index*** Index****
- ------------------------------------------------------------------------
April 30, 1994 9,550 10,000 10,000
1994 9,609 10,087 10,007
1994 9,576 10,025 10,041
1994 9,741 10,209 10,068
1994 9,774 10,244 10,109
1994 9,612 10,094 10,136
1994 9,457 9,915 10,142
1994 9,274 9,735 10,156
1994 9,515 9,950 10,156
1995 9,745 10,234 10,197
1995 10,070 10,532 10,237
1995 10,159 10,653 10,271
1995 10,219 10,665 10,305
1995 10,512 11,006 10,326
1995 10,429 10,909 10,346
1995 10,488 11,013 10,346
1995 10,587 11,152 10,373
1995 10,646 11,223 10,393
1995 10,846 11,386 10,427
1995 11,094 11,575 10,421
1995 11,253 11,686 10,414
1996 11,300 11,774 10,475
1996 11,244 11,695 10,509
1996 11,074 11,546 10,563
1996 11,009 11,513 10,604
1996 11,023 11,508 10,624
1996 11,133 11,634 10,631
1996 11,240 11,739 10,651
1996 11,212 11,736 10,672
1996 11,432 11,901 10,706
1996 11,569 12,035 10,739
1996 11,841 12,255 10,760
1996 11,747 12,204 10,760
1997 11,729 12,227 10,794
1997 11,850 12,339 10,828
1997 11,641 12,175 10,855
1997 11,741 12,277 10,868
1997 11,936 12,461 10,862
1997 12,082 12,594 10,875
1997 12,529 12,943 10,889
1997 12,323 12,822 10,909
1997 12,527 12,974 10,936
1997 12,607 13,057 10,963
1997 12,695 13,134 10,957
1997 12,961 13,325 10,943
1998 13,108 13,463 10,963
1998 13,078 13,467 10,984
1998 13,060 13,479 11,004
1998 12,973 13,418 11,024
1998 13,236 13,631 11,045
1998 13,289 13,684 11,058
1998 13,293 13,719 11,072
1998 13,539 13,931 11,085
1998 13,751 14,104 11,099
1998 13,660 14,104 11,126
1998 13,713 14,153 11,126
1998 13,737 14,189 11,119
1999 13,914 14,358 11,147
1999 13,797 14,295 11,160
1999 13,828 14,315 11,194
1999 13,855 14,350 11,275
1999 13,733 14,267 11,275
1999 13,487 14,062 11,275
1999 13,489 14,113 11,309
1999 13,250 14,000 11,337
1999 13,217 14,006 11,391
1999 12,961 13,854 11,411
1999 13,134 14,002 11,418
1999 12,962 13,897 11,418
2000 12,855 13,837 11,445
2000 13,047 13,997 11,513
2000 13,407 14,303 11,608
2000 13,285 14,219 11,615
2000 13,169 14,145 11,621
2000 13,558 14,520 11,689
2000 13,744 14,722 11,710
2000 13,970 14,948 11,723
2000 13,898 14,871 11,784
2000 14,062 15,033 11,805
2000 14,188 15,147 11,811
2000 14,519 15,521 11,805
2001 14,635 15,675 11,879
2001 14,682 15,725 11,927
2001 14,820 15,866 11,954
2001 14,658 15,694 12,001
2001 14,826 15,863 12,056
2001 14,953 15,969 12,076
2001 15,205 16,205 12,042
2001 15,524 16,472 12,042
2001 15,460 16,417 12,096
2001 15,662 16,612 12,056
2001 15,518 16,473 12,035
2001 15,332 16,317 11,988
2002 15,587 16,600 12,015
2002 15,785 16,800 12,062
2002 15,463 16,471 12,130
2002 15,723 16,792 12,198
2002 15,809 16,895 12,198
2002 15,977 17,073 12,205
2002 16,180 17,293 12,219
2002 16,350 17,500 12,259
2002 16,697 17,884 12,280
2002 16,343 17,587 12,310
2002 16,288 17,514 12,310
2002 16,626 17,884 12,283
2003 16,557 17,839 12,337
2003 16,821 18,089 12,432
2003 16,793 18,100 12,507
2003 16,884 18,219 12,480
2003 17,323 18,645 12,460
2003 17,237 18,566 12,473
2003 16,602 17,916 12,487
2003 16,717 18,050 12,534
2003 17,167 18,580 12,575
2003 17,093 18,487 12,561
2003 17,269 18,680 12,527
2003 17,425 18,835 12,514
2004 17,501 18,942 12,575
2004 17,759 19,228 12,643
2004 17,689 19,160 12,724
April 30, 2004 $17,280 $18,706 $12,765
Average Annual Total Returns/1/
As of April 30, 2004
Class A/2/ 1-Year 5-Year 10-Year
- ----------------------------------------------------------------
without sales charge 2.34% 4.52% 6.11%
with sales charge (2.24)% 3.56% 5.62%
From
Inception
Class B/2/ 1-Year 5-Year 1/8/1997
- ----------------------------------------------------------------
without sales charge 1.42% 3.64% 4.89%
with sales charge (2.50)% 3.64% 4.89%
From
Inception
Institutional Class/3/ 1-Year 5-Year 12/29/1997
- ----------------------------------------------------------------
Net Asset Value 2.66% 4.84% 4.95%
Footnotes read:
** As you compare performance, please note that the Fund's
performance reflects the maximum 4.5% sales charge,
while the Lehman Brothers Municipal Bond Index and the
Consumer Price Index do not reflect any such charges.
If you were to purchase any of the above individual
stocks or funds represented in these Indexes, any
charges you would pay would reduce your total return as
well.
*** The Lehman Brothers Municipal Bond Index is a market
value-weighted index of investment grade municipal
bonds with maturities of one year or more. It is not
possible to invest directly in the Index. The
performance of the Index does not reflect deductions
for fees, expenses or taxes.
**** The Consumer Price Index is an inflationary indicator that
measures the change in the cost of a fixed basket of
products and services, including housing, electricity,
food and transportation. It is not possible to invest
directly in the Index.
/1/ Past performance is not an indication of future results.
Annualized total returns represent past performance and
reflect changes in share prices, the reinvestment of
all dividends and capital gains, and the effects of
compounding. Investment return and principal value will
fluctuate, and shares, when redeemed, may be worth more
or less than their original cost. Current performance
may be lower or higher than the performance data
quoted. Call 800-THRIVENT or visit www.thrivent.com for
more current performance results. At various times, the
Fund's adviser waived its management fee and/or
reimbursed Fund expenses. Had the adviser not done so,
the Fund's total returns would have been lower. The
returns shown do not reflect taxes a shareholder would
pay on distributions or redemptions. The prospectus
contains more complete information on the objectives,
risks, charges and expenses of the investment company
which investors should read and consider carefully
before investing. Please read your prospectus
carefully.
/2/ Class A performance has been restated to reflect the maximum
sales charge of 4.5%. Class B performance reflects the
maximum contingent deferred sales charge (CDSC) of 5%,
declining 1% each year during the first five years and
then converting to Class A shares after the fifth year.
/3/ Institutional Class shares have no sales load and are for
institutional shareholders only.
The AAL Bond Fund
[PHOTO OMITTED: ALAN D. ONSTAD AND MICHAEL G. LANDREVILLE]
Alan D. Onstad (left) and Michael G. Landreville (right), Portfolio
Co-Managers
The AAL Bond Fund seeks a high level of current income consistent with
capital preservation by investing primarily in a diversified portfolio
of investment-grade bonds.
Despite a downward bias to bond prices, The AAL Bond Fund generated a
total return of 2.74% over the 12-month period ended April 30, 2004
compared to 1.82% for the Lehman U.S. Aggregate Bond Index and a
median return of 1.70% for its Lipper Inc. peer group of similar
funds. Choppy conditions characterized the domestic bond market during
the reporting period as investors nervously scanned the economic
horizon for clues about growth, inflation, and Federal Reserve Board
policy.
Focus on Jobs
In a dramatic reversal of the previous 12 months, strength within the
fixed-income market was concentrated in the corporate sector as credit
spreads narrowed relative to Treasury and agency debt. Leadership also
resided in shorter-term maturities, reflecting investor concerns over
the impact of faster economic growth on inflation and monetary policy.
More than any other factor, however, it was the oft-delayed revival of
the nation's labor market that caused a sharp rise in market interest
rates late in the period. With the economy starting to generate jobs
at something close to a normal rate this spring, many investors came
to expect that the Federal Reserve would soon end the era of
exceptionally cheap money. With the Fed telegraphing its intentions to
eventually raise benchmark rates, the bulk of the increase in bond
yields came at the expense of longer-term maturities.
The Fund was positioned to benefit from several major trends within
the fixed-income market. Relative performance was enhanced by our
overweighting in corporate bonds, especially those at the lower end of
the investment-grade category. The Fund also gained as a result of
maintaining an average maturity shorter than that of our benchmark.
Opportunistic trades in the mortgage-backed sector helped Fund returns
as well. Conversely, relative performance was negatively impacted in
August by a brief but disproportionate rise in the yields of bonds
with short maturities. That increase was subsequently reversed when
sluggish jobs growth last fall convinced investors that Federal
Reserve rate hikes were not imminent.
[GRAPHIC OMITTED: RATINGS DISTRIBUTIONS]
Moody's Bond Quality
Ratings Distributions
Aaa 54.3%
Aa 0.6%
A 8.5%
Baa 27.2%
Ba 8.8%
B 0.0%
Caa 0.0%
Ca 0.0%
C 0.0%
D 0.0%
Not Rated 0.6%
Top 10 Holdings
(% of Portfolio)
Federal National Mortgage Association 10.1%
Federal National Mortgage Association 10.1%
U.S. Treasury Notes 3.6%
Lehman Brothers, Inc. 2.1%
Chase Credit Card Master Trust 1.8%
GMAC Mortgage Corporation Loan Trust 1.6%
U.S. Treasury Notes 1.6%
Federal National Mortgage Association 1.5%
Federal Home Loan Mortgage Corporation 1.4%
Federal National Mortgage Association 1.1%
These long term fixed income securities represent 34.9% of the total
investment portfolio.
Footnotes read:
Quoted Fund performance is for Class A shares and does not reflect a
sales charge.
The returns shown do not reflect taxes a shareholder would pay on
distributions or redemptions.
Quoted Moody's Bond Quality Ratings Distributions, Portfolio
Composition and Top 10 Holdings are subject to change.
The list of Top 10 Holdings excludes short term investments and
collateral held for securities loaned.
Outlook
With the targeted federal funds rate at the historically low level of
1%, it is only a matter of time before the Federal Reserve embarks on
its long-awaited tightening cycle. In fact, the question is not
whether the Fed will tighten monetary policy, but rather when the
increases will begin and how high they will take the federal funds
rate. Accordingly, we have positioned the Fund defensively by keeping
its average maturity shorter than that of its benchmark. In addition,
we have begun taking profits in better-performing corporate holdings
and shifting the proceeds into the depressed Treasury and
government-agency sectors. Besides economic fundamentals, bond prices
could be impacted by events in the Middle East. Also, persistently
high energy prices could complicate the task of the Federal Reserve in
setting monetary policy by both adding to current inflation while
threatening to slow future growth through its negative effect on
consumer spending. Despite the many unpredictable and contradictory
forces at work, we expect U.S. bond yields to trend higher in 2004 and
2005 as the global economic recovery broadens and gathers momentum.
Portfolio Facts
As of April 30, 2004
A Share B Share Institutional Share
------------------ ------------------ -------------------
Ticker AAINX BBFBX IIINX
Transfer Agent ID 016 066 089
Net Assets $460,536,715 $13,425,034 $34,507,944
NAV $10.14 $10.15 $10.15
NAV -- High+ 6/13/2003 -- $10.60 6/13/2003 -- $10.60 6/13/2003 -- $10.60
NAV -- Low+ 8/14/2003 -- $10.04 8/14/2003 -- $10.04 8/14/2003 -- $10.04
Number of Holdings: 112 + For the year ended April 30, 2004
[GRAPHIC WORM CHART OMITTED: VALUE OF A $10,000 INVESTMENT]
Value of a $10,000 Investment
Class A Shares*/1/
Lehman
Brothers
The AAL Aggregate Consumer
Bond Bond Price
Date Fund Index** Index***
- ------------------------------------------------------------------------
April 30, 1994 9,550 10,000 10,000
1994 9,536 9,999 10,007
1994 9,522 9,976 10,041
1994 9,665 10,175 10,068
1994 9,686 10,187 10,109
1994 9,553 10,037 10,136
1994 9,530 10,028 10,142
1994 9,478 10,006 10,156
1994 9,520 10,075 10,156
1995 9,677 10,275 10,197
1995 9,872 10,519 10,237
1995 9,946 10,583 10,271
1995 10,069 10,731 10,305
1995 10,387 11,147 10,326
1995 10,450 11,228 10,346
1995 10,406 11,203 10,346
1995 10,520 11,338 10,373
1995 10,613 11,449 10,393
1995 10,743 11,598 10,427
1995 10,903 11,771 10,421
1995 11,049 11,937 10,414
1996 11,105 12,016 10,475
1996 10,861 11,807 10,509
1996 10,767 11,725 10,563
1996 10,691 11,659 10,604
1996 10,655 11,635 10,624
1996 10,773 11,792 10,631
1996 10,811 11,824 10,651
1996 10,798 11,804 10,672
1996 10,970 12,010 10,706
1996 11,209 12,276 10,739
1996 11,402 12,486 10,760
1996 11,299 12,370 10,760
1997 11,344 12,408 10,794
1997 11,366 12,439 10,828
1997 11,261 12,301 10,855
1997 11,378 12,485 10,868
1997 11,470 12,603 10,862
1997 11,613 12,753 10,875
1997 11,911 13,096 10,889
1997 11,823 12,985 10,909
1997 11,992 13,176 10,936
1997 12,161 13,367 10,963
1997 12,190 13,429 10,957
1997 12,314 13,564 10,943
1998 12,456 13,738 10,963
1998 12,412 13,728 10,984
1998 12,457 13,775 11,004
1998 12,500 13,847 11,024
1998 12,614 13,978 11,045
1998 12,712 14,097 11,058
1998 12,718 14,127 11,072
1998 12,939 14,357 11,085
1998 13,224 14,693 11,099
1998 13,113 14,615 11,126
1998 13,053 14,698 11,126
1998 13,130 14,742 11,119
1999 13,195 14,847 11,147
1999 12,952 14,588 11,160
1999 13,041 14,669 11,194
1999 13,076 14,716 11,275
1999 12,935 14,587 11,275
1999 12,883 14,540 11,275
1999 12,809 14,478 11,309
1999 12,794 14,471 11,337
1999 12,924 14,639 11,391
1999 12,944 14,693 11,411
1999 12,965 14,692 11,418
1999 12,913 14,621 11,418
2000 12,870 14,573 11,445
2000 12,994 14,749 11,513
2000 13,132 14,944 11,608
2000 13,057 14,901 11,615
2000 13,034 14,894 11,621
2000 13,302 15,204 11,689
2000 13,402 15,342 11,710
2000 13,603 15,565 11,723
2000 13,688 15,662 11,784
2000 13,722 15,766 11,805
2000 14,000 16,024 11,811
2000 14,303 16,321 11,805
2001 14,484 16,588 11,879
2001 14,618 16,733 11,927
2001 14,705 16,817 11,954
2001 14,634 16,747 12,001
2001 14,708 16,848 12,056
2001 14,733 16,911 12,076
2001 15,095 17,290 12,042
2001 15,275 17,488 12,042
2001 15,464 17,691 12,096
2001 15,739 18,062 12,056
2001 15,550 17,813 12,035
2001 15,467 17,699 11,988
2002 15,538 17,843 12,015
2002 15,608 18,016 12,062
2002 15,327 17,716 12,130
2002 15,513 18,059 12,198
2002 15,627 18,213 12,198
2002 15,688 18,371 12,205
2002 15,775 18,592 12,219
2002 16,061 18,906 12,259
2002 16,348 19,212 12,280
2002 16,224 19,124 12,310
2002 16,176 19,119 12,310
2002 16,521 19,514 12,283
2003 16,547 19,531 12,337
2003 16,822 19,801 12,432
2003 16,838 19,785 12,507
2003 17,031 19,949 12,480
2003 17,390 20,320 12,460
2003 17,405 20,280 12,473
2003 16,836 19,598 12,487
2003 16,912 19,728 12,534
2003 17,398 20,250 12,575
2003 17,258 20,062 12,561
2003 17,300 20,109 12,527
2003 17,485 20,314 12,514
2004 17,651 20,478 12,575
2004 17,833 20,699 12,643
2004 17,969 20,855 12,724
April 30, 2004 17,498 20,312 12,765
Average Annual Total Returns/1/
As of April 30, 2004
Class A/2/ 1-Year 5-Year 10-Year
- ----------------------------------------------------------------
without sales charge 2.74% 6.00% 6.24%
with sales charge (1.92)% 5.02% 5.75%
From
Inception
Class B/2/ 1-Year 5-Year 1/8/1997
- ----------------------------------------------------------------
without sales charge 1.75% 5.03% 5.54%
with sales charge (2.19)% 5.03% 5.54%
From
Inception
Institutional Class/3/ 1-Year 5-Year 12/29/1997
- ----------------------------------------------------------------
Net Asset Value 3.25% 6.44% 6.13%
Footnotes read:
* As you compare performance, please note that the Fund's
performance reflects the maximum 4.5% sales charge,
while the Lehman Brothers Aggregate Bond Index and the
Consumer Price Index do not reflect any such charges.
If you were to purchase any of the above individual
stocks or funds represented in these Indexes, any
charges you would pay would reduce your total return as
well.
** The Lehman Brothers Aggregate Bond Index is an index that measures
the performance of U.S. investment grade bonds. It is
not possible to invest directly in the Index. The
performance of the Index does not reflect deductions
for fees, expenses or taxes.
*** The Consumer Price Index is an inflationary indicator that
measures the change in the cost of a fixed basket of
products and services, including housing, electricity,
food and transportation. It is not possible to invest
directly in the Index.
/1/ Past performance is not an indication of future results.
Annualized total returns represent past performance and
reflect changes in share prices, the reinvestment of
all dividends and capital gains, and the effects of
compounding. Investment return and principal value will
fluctuate, and shares, when redeemed, may be worth more
or less than their original cost. Current performance
may be lower or higher than the performance data
quoted. Call 800-THRIVENT or visit www.thrivent.com for
more current performance results. At various times, the
Fund's adviser waived its management fee and/or
reimbursed Fund expenses. Had the adviser not done so,
the Fund's total returns would have been lower. The
returns shown do not reflect taxes a shareholder would
pay on distributions or redemptions. The prospectus
contains more complete information on the objectives,
risks, charges and expenses of the investment company
which investors should read and consider carefully
before investing. Please read your prospectus
carefully.
/2/ Class A performance has been restated to reflect the maximum sales
charge of 4.5%. Class B performance reflects the
maximum contingent deferred sales charge (CDSC) of 5%,
declining 1% each year during the first five years and
then converting to Class A shares after the fifth year.
/3/ Institutional Class shares have no sales load and are for
institutional shareholders only.
The AAL Bond Index Fund
[PHOTO OMITTED: STEVEN H. C. LEE]
Steven H.C. Lee, Portfolio Manager
The AAL Bond Index Fund strives for investment results similar to the
total return of the Lehman Brothers Aggregate Bond Index by investing
primarily in bonds and other debt securities included in the Index.
For the 12-month period ended April 30, 2004, The AAL Bond Index Fund
posted a total return of 1.31% compared to a 1.82% total return for
the Lehman U.S. Aggregate Bond Index and a median return of 1.70% for
its Lipper Inc. peer group of similar funds. Bond yields rode a
roller-coaster over the reporting period in response to shifting but
generally improving economic conditions. In that environment, interest
rates trended higher as investors anticipated an end to the long era
of exceptionally cheap credit.
Jobs Reappear
Although bond yields were volatile throughout the reporting period,
they rose sharply after evidence began to accumulate in late winter
that the labor market was finally on the mend. Until that point, tepid
jobs growth had made it likely that the Federal Reserve would keep
official interest rates at the 46-year low of 1% for most or all of
2004. Strength in the fixed-income market was concentrated in the
corporate sector and in shorter-term bonds, while Treasury,
government agency, and longer-term maturities lagged by a
significant amount.
The Fund's relative performance was negatively impacted by the Fund's
decision to anticipate changes in the makeup of the Lehman U.S.
Aggregate Bond Index by moving into newer production, lower-coupon
mortgage securities just before a significant spike in interest rates
last summer. Conversely, relative returns were helped by our close
attention to credit exposure, particularly our strategy of minimizing
under- or overweights to specific corporate issues.
The Fund attempts to achieve investment results similar to those
generated by the Lehman U.S. Aggregate Bond Index, an unmanaged
fixed-income benchmark that includes U.S. Treasury and government
agency bonds, investment-grade corporate debt, mortgage-backed
securities, asset-backed bonds, and commercial mortgage-backed
securities. Notably, the Fund does not invest in sub-investment bonds
since that sector of the domestic fixed-income market is not included
in the Lehman U.S. Aggregate Bond Index. The Fund also seeks to
maintain duration, yield curve and sector exposure as close as
possible to the benchmark.
[GRAPHIC OMITTED: RATINGS DISTRIBUTIONS]
Moody's Bond Quality
Ratings Distributions
Aaa 76.0%
Aa 1.2%
A 9.8%
Baa 12.9%
Ba 0.1%
B 0.0%
Caa 0.0%
Ca 0.0%
C 0.0%
D 0.0%
Not Rated 0.0%
Top 10 Holdings
(% of Portfolio)
Federal National Mortgage Association 7.8%
U.S. Treasury Notes 5.9%
Federal National Mortgage Association 4.4%
Federal National Mortgage Association 2.2%
Federal Home Loan Mortgage Corporation 1.8%
Federal Home Loan Mortgage Corporation 1.5%
Federal Home Loan Mortgage Corporation 1.5%
U.S. Treasury Notes 1.1%
U.S. Treasury Notes 1.0%
Chase Credit Card Master Trust 0.9%
These long term fixed income securities represent 28.1% of the total
investment portfolio.
Footnotes read:
The returns shown do not reflect taxes a shareholder would pay on
distributions or redemptions.
Quoted Moody's Bond Quality Ratings Distributions, Portfolio
Composition and Top 10 Holdings are subject to change.
The list of Top 10 Holdings excludes short term investments and
collateral held for securities loaned.
Outlook
Given the recent strength in the domestic labor market and the massive
amount of monetary and fiscal stimulus still coursing through the U.S.
financial system, economic growth should remain fairly strong for
several more quarters. And with the targeted federal funds rate at the
historically low level of 1%, it is only a matter of time before the
Federal Reserve embarks on its long-awaited tightening cycle. However,
the timing and magnitude of rate hikes will depend upon the outlook
for inflation, which remains murky. It is likely that consumer prices
will move up in coming months, if only because last year's depressed
figures will no longer count in the calculations. Still, we do not
believe that inflation will spiral out of control. The labor market
will be the key to Federal Reserve policy in 2004. If jobs growth
remains strong, we expect the Fed to tighten monetary policy on a
slow, incremental basis. Accordingly, we expect that the larger
increases in market interest rates will be concentrated in
shorter-term maturities.
Portfolio Facts
As of April 30, 2004
Institutional Share
-------------------
Ticker AABIX
Transfer Agent ID 059
Net Assets $40,656,863
NAV $10.10
NAV -- High+ 6/13/2003 -- $11.20
NAV -- Low+ 4/29/2004 -- $10.09
Number of Holdings: 172 + For the year ended April 30, 2004
[GRAPHIC WORM CHART OMITTED: VALUE OF A $10,000 INVESTMENT]
Value of a $10,000 Investment
Institutional Class Shares*/1/
Lehman
The AAL Brothers Consumer
Bond Aggregate Price
Date Index Fund Bond Index** Index***
- ------------------------------------------------------------------------
December 31, 1999 10,000 10,000 10,000
2000 9,941 9,967 10,024
2000 10,057 10,088 10,083
2000 10,196 10,221 10,166
2000 10,168 10,192 10,172
2000 10,169 10,187 10,178
2000 10,382 10,399 10,238
2000 10,472 10,493 10,255
2000 10,626 10,645 10,267
2000 10,705 10,712 10,321
2000 10,777 10,783 10,339
2000 10,965 10,959 10,345
2000 11,171 11,163 10,339
2001 11,332 11,345 10,404
2001 11,436 11,444 10,446
2001 11,496 11,502 10,469
2001 11,439 11,454 10,511
2001 11,501 11,523 10,559
2001 11,532 11,566 10,576
2001 11,796 11,825 10,547
2001 11,925 11,961 10,547
2001 12,107 12,100 10,594
2001 12,322 12,353 10,559
2001 12,168 12,183 10,541
2001 12,083 12,105 10,499
2002 12,167 12,203 10,523
2002 12,297 12,322 10,564
2002 12,062 12,117 10,624
2002 12,281 12,352 10,683
2002 12,401 12,457 10,683
2002 12,505 12,564 10,689
2002 12,652 12,716 10,701
2002 12,878 12,931 10,737
2002 13,081 13,140 10,755
2002 13,031 13,080 10,781
2002 13,001 13,076 10,781
2002 13,266 13,346 10,758
2003 13,275 13,358 10,805
2003 13,465 13,543 10,888
2003 13,446 13,532 10,954
2003 13,552 13,644 10,930
2003 13,792 13,898 10,912
2003 13,774 13,870 10,924
2003 13,277 13,404 10,936
2003 13,352 13,493 10,978
2003 13,721 13,850 11,013
2003 13,582 13,721 11,001
2003 13,607 13,754 10,972
2003 13,748 13,894 10,960
2004 13,854 14,006 11,013
2004 13,986 14,157 11,073
2004 14,096 14,263 11,144
April 30, 2004 $13,730 $13,892 $11,180
Average Annual Total Returns/1/
As of April 30, 2004
From
Inception
Institutional Class/2/ 1-Year 12/31/1999
- ----------------------------------------------------------------
Net Asset Value 1.31% 7.59%
Footnotes read:
* As you compare performance, please note that the Fund's
performance reflects Fund expenses, net of any
reimbursements, while the Lehman Brothers Aggregate
Bond Index and the Consumer Price Index do not reflect
such charges. If you were to purchase any of the above
individual stocks or funds represented in these
Indexes, any charges you would pay would reduce your
total return as well.
** The Lehman Brothers Aggregate Bond Index is an index that measures
the performance of U.S. investments grade bonds. It is
not possible to invest directly in the Index. The
performance of the Index does not reflect deductions
for fees, expenses or taxes.
*** The Consumer Price Index is an inflationary indicator that
measures the change in the cost of a fixed basket of
products and services, including housing, electricity,
food and transportation. It is not possible to invest
directly in the Index.
/1/ Past performance is not an indication of future results.
Annualized total returns represent past performance and
reflect changes in share prices, the reinvestment of
all dividends and capital gains, and the effects of
compounding. Investment return and principal value will
fluctuate, and shares, when redeemed, may be worth more
or less than their original cost. Current performance
may be lower or higher than the performance data
quoted. Call 800-THRIVENT or visit www.thrivent.com for
more current performance results. At various times, the
Fund's adviser waived its management fee and/or
reimbursed Fund expenses. Had the adviser not done so,
the Fund's total returns would have been lower. The
returns shown do not reflect taxes a shareholder would
pay on distributions or redemptions. The prospectus
contains more complete information on the objectives,
risks, charges and expenses of the investment company
which investors should read and consider carefully
before investing. Please read your prospectus
carefully.
/2/ Institutional Class shares have no sales load and are for
institutional shareholders only.
The AAL Money Market Fund
[PHOTO OMITTED: WILLIAM D. STOUTEN]
William D. Stouten, Portfolio Manager
The AAL Money Market Fund seeks a high level of current income while
maintaining liquidity and a constant net asset value of $1.00 per
share, by investing in a diversified portfolio of high quality,
short-term money market instruments.*
Money market yields declined along with overall short-term interest
rates for the 12-month period ended April 30, 2004. The AAL Money
Market Fund provided investors with a net return of 0.32% for the
period, while the Fund's Lipper Inc. peer group earned a median return
of 0.36%.
Federal Reserve Policy
After 13 cuts in the overnight federal funds target interest rate
since the beginning of 2001, the rate dropped to 1% in June 2003 --
its lowest level in more than 40 years. The Federal Reserve Board left
its target for the rate at 1% during the remainder of this reporting
period. The Fed appears to believe that maintaining its accommodative
monetary policy will continue to support strong underlying growth in
the economy -- and that the risks of an overheating economy and a
languishing one are about equal.
The average maturity length of the Fund's holdings was slightly
shorter than our peer group for most of the period, reflecting our
anticipation of better economic news that would push up longer-term
rates and allow us to take advantage of higher yields. Last October,
longer-term rates did rise, and we lengthened average maturities in
the Fund to better align them with that of our Lipper Inc. peer group.
Also to increase the Fund's yield, we boosted our exposure to
variable-rate securities, which generally provide higher yields than
commercial paper equivalents. Both of these strategies contributed to
our performance over the period.
The Fund's performance compared to its Lipper Inc. peer group is
partially explained by our focus on the highest quality money market
instruments. Maintaining a portfolio of only the highest quality
assets contributes to a slightly lower yield than our peer group, but
remains a core part of our conservative investment strategy designed
to meet investors' primary objectives of safety and liquidity.
Footnotes read:
*To the extent practicable, the Fund intends to maintain a stable net
asset value of $1.00 per share. An investment in The AAL Money Market
Fund is not insured or guaranteed by the FDIC or any other government
agency. Although the Fund seeks to preserve the value of your
investment at $1 per share, it is possible to lose money by investing
in the Fund.
Quoted Fund performance is for Class A shares.
The returns shown do not reflect taxes a shareholder would pay on
distributions or redemptions.
Quoted Portfolio Composition is subject to change.
Outlook
We expect the Fed to raise the overnight federal funds target rate in
the coming months when it is convinced that the risks of
faster-than-desired economic growth and rising inflation outweigh the
risks of faltering growth and falling inflation. As in any interest
rate environment, our strategy remains the same: We continue to focus
on conservative investments that maximize safety and liquidity for our
clients. We are confident that the higher yields and returns
historically provided by money market funds eventually will return.
Portfolio Facts
As of April 30, 2004
A Share B Share Institutional Share
------------------ ------------------ -------------------
Ticker AMMXX N/A AALXX
Transfer Agent ID 018 068 091
Net Assets $262,221,969 $1,805,199 $114,583,032
NAV $1.00 $1.00 $1.00
Number of Holdings: 58
The AAL Money Market Fund
As of April 30, 2004**
Class A Class B Institutional
- ----------------------------------------------------------------
7-Day Yield 0.23% 0.05% 0.53%
7-Day Effective Yield 0.23% 0.05% 0.53%
Average Annual Total Returns/1/
As of April 30, 2004
Class A/2/ 1-Year 5-Year 10-Year
- ----------------------------------------------------------------
Net Asset Value 0.32% 2.81% 3.78%
From
Inception
Class B/2/ 1-Year 5-Year 1/8/1997
- ----------------------------------------------------------------
without sales charge 0.07% 2.07% 2.81%
with sales charge (3.93)% 2.07% 2.81%
From
Inception
Institutional Class/3/ 1-Year 5-Year 12/29/1997
- ----------------------------------------------------------------
Net Asset Value 0.59% 3.12% 3.51%
Footnotes read:
** Seven-day yields of The AAL Money Market Fund refer to the income
generated by an investment in the Fund over a specified
seven-day period. Effective yields reflect the
reinvestment of income. Yields are subject to daily
fluctuation and should not be considered an indication
of future results.
/1/Past performance is not an indication of future results. Annualized
total returns represent past performance and reflect
changes in share prices, the reinvestment of all
dividends and capital gains, and the effects of
compounding. Current performance may be lower or higher
than the performance data quoted. Call 800-THRIVENT or
visit www.thrivent.com for more current performance
results. At various times, the Fund's adviser waived
its management fee and/or reimbursed Fund expenses. Had
the adviser not done so, the Fund's total returns would
have been lower. The returns shown do not reflect taxes
a shareholder would pay on distributions or
redemptions. The prospectus contains more complete
information on the objectives, risks, charges and
expenses of the investment company which investors
should read and consider carefully before investing.
Please read your prospectus carefully.
/2/Class B performance reflects the maximum contingent deferred sales
charge (CDSC) of 5%, declining 1% each year during the
first five years and then converting to Class A shares
after the fifth year.
/3/Institutional Class shares have no sales load and are for
institutional shareholders only.
[LOGO OMITTED]
PricewaterhouseCoopers LLP
Suite 1500
100 E. Wisconsin Ave.
Milwaukee WI 53202
Telephone (414) 212 1600
Report of Independent Registered Public Accounting Firm
To the Shareholders and Trustees of
The AAL Mutual Funds
In our opinion, the accompanying statements of assets and liabilities,
including the schedules of investments, and the related statements of
operations and of changes in net assets and the financial highlights
present fairly, in all material respects, the financial position of
The AAL Technology Stock Fund, The AAL Aggressive Growth Fund, The AAL
Small Cap Stock Fund, The AAL Small Cap Index Fund II, The AAL Small
Cap Value Fund, The AAL Mid Cap Stock Fund, The AAL Mid Cap Index
Fund, The AAL Mid Cap Index Fund II, The AAL International Fund, The
AAL Capital Growth Fund, The AAL Large Company Index Fund, The AAL
Large Company Index Fund II, The AAL Equity Income Fund, The AAL
Balanced Fund, The AAL High Yield Bond Fund, The AAL Municipal Bond
Fund, The AAL Bond Fund, The AAL Bond Index Fund, and The AAL Money
Market Fund (nineteen of the portfolios constituting The AAL Mutual
Funds, hereafter referred to as the "Funds") at April 30, 2004, the
results of each of their operations for the year then ended, the
changes in each of their net assets and the financial highlights for
each of the periods presented, in conformity with accounting
principles generally accepted in the United States of America. These
financial statements and financial highlights (hereafter referred to
as "financial statements") are the responsibility of the Funds'
management; our responsibility is to express an opinion on these
financial statements based on our audits. We conducted our audits of
these financial statements in accordance with the standards of the
Public Company Accounting Oversight Board (United States), which
require that we plan and perform the audit to obtain reasonable
assurance about whether the financial statements are free of material
misstatement. An audit includes examining, on a test basis, evidence
supporting the amounts and disclosures in the financial statements,
assessing the accounting principles used and significant estimates
made by management, and evaluating the overall financial statement
presentation. We believe that our audits, which included confirmation
of securities at April 30, 2004 by correspondence with the custodian
and brokers, provide a reasonable basis for our opinion.
/S/ PricewaterhouseCoopers LLP
June 7, 2004
The AAL Technology Stock Fund
Schedule of Investments as of April 30, 2004 (a)
Shares Common Stock (90.6%) Value
- -------------------------------------------------------------------------------------------------------------------------
Communications Services (1.7%)
- -------------------------------------------------------------------------------------------------------------------------
4,900 Nextel Communications, Inc.(b) $116,914
19,450 Sprint Corporation (FON Group) 347,960
11,100 Verizon Communications, Inc. 418,914
- -------------------------------------------------------------------------------------------------------------------------
Total Communications Services 883,788
=========================================================================================================================
Consumer Discretionary (3.7%)
- -------------------------------------------------------------------------------------------------------------------------
3,000 Amazon.com, Inc.(b) 130,380
15,000 eBay, Inc. 1,197,300
2,200 Pixar, Inc.(b,c) 150,260
5,200 Walt Disney Company 119,756
11,900 XM Satellite Radio Holdings, Inc.(b,c) 285,124
- -------------------------------------------------------------------------------------------------------------------------
Total Consumer Discretionary 1,882,820
=========================================================================================================================
Health Care (4.4%)
- -------------------------------------------------------------------------------------------------------------------------
2,100 Amgen, Inc.(b) 118,167
2,300 Bausch & Lomb, Inc. 144,509
5,100 Baxter International, Inc. 161,415
3,000 Boston Scientific Corporation 123,570
2,300 Cephalon, Inc.(b,c) 130,893
2,700 Charles River Laboratories International, Inc.(b) 124,200
1,700 Invitrogen Corporation(b) 122,791
1,900 Martek Biosciences Corporation(b) 120,631
12,300 Medarex, Inc.(b) 117,219
4,500 Medtronic, Inc. 227,070
11,300 Pfizer, Inc. 404,088
8,500 Protein Design Labs, Inc.(b) 208,080
5,200 Telik, Inc.(b) 122,044
13,700 Vertex Pharmaceuticals, Inc.(b) 118,368
- -------------------------------------------------------------------------------------------------------------------------
Total Health Care 2,243,045
=========================================================================================================================
Industrials (1.3%)
- -------------------------------------------------------------------------------------------------------------------------
31,100 Active Power, Inc.(b) 98,276
5,500 American Power Conversion Corporation 102,630
5,700 Monster Worldwide, Inc.(b) 145,977
3,300 Northrop Grumman Corporation 327,525
- -------------------------------------------------------------------------------------------------------------------------
Total Industrials 674,408
=========================================================================================================================
Information Technology (79.5%)
- -------------------------------------------------------------------------------------------------------------------------
9,600 Accenture, Ltd.(b) 228,192
8,000 Activision, Inc. 120,480
3,600 Adobe Systems, Inc. 148,824
15,500 Agilent Technologies, Inc.(b) 418,655
8,900 Akamai Technologies, Inc.(b,c) 105,198
6,100 Altera Corporation(b) 122,061
9,300 Amkor Technology, Inc.(b) 75,144
18,400 Analog Devices, Inc. 783,840
32,000 Apple Computer, Inc.(b) 823,360
48,800 Applied Materials, Inc.(b) 889,624
4,100 Ask Jeeves, Inc.(b,c) 145,427
8,000 ATI Technologies, Inc.(b) 116,400
8,500 AU Optronics Corporation(c) 182,580
14,000 Autodesk, Inc. 469,000
14,200 Avaya, Inc.(b) 194,256
2,700 Avid Technology, Inc.(b) 129,519
37,300 BEA Systems, Inc.(b) 425,593
23,100 BMC Software, Inc.(b) 399,630
9,600 Broadcom Corporation(b) 362,496
5,500 CDW Corporation 343,695
16,600 Check Point Software Technologies, Ltd.(b) 388,938
6,200 CheckFree Corporation(b,c) 186,248
33,800 ChipPAC, Inc.(b,c) 207,194
105,600 Cisco Systems, Inc.(b) 2,203,872
2,600 Cognizant Technology Solutions Corporation(b) 112,476
7,100 Cognos, Inc.(b) 223,863
17,700 Computer Associates International, Inc. 474,537
5,100 Computer Sciences Corporation(b) 208,641
21,100 Comverse Technology, Inc.(b) 345,196
12,500 Cypress Semiconductor Corporation(b) 174,625
68,900 Dell, Inc.(b) 2,391,519
4,000 DST Systems, Inc.(b) 176,600
5,500 Electronic Arts, Inc. 278,410
69,200 EMC Corporation(b) 772,272
18,300 First Data Corporation 830,637
25,900 Flextronics International, Ltd.(b) 416,990
13,500 Hewlett-Packard Company 265,950
15,800 Integrated Device Technology, Inc.(b) 212,510
79,300 Intel Corporation 2,040,389
25,800 International Business Machines Corporation 2,274,786
9,000 Intersil Corporation 177,750
8,800 Jabil Circuit, Inc.(b) 232,232
52,500 JDS Uniphase Corporation(b) 159,600
14,500 Juniper Networks, Inc.(b,c) 317,260
14,100 KLA-Tencor Corporation(b) 587,547
6,600 Lexmark International, Inc.(b) 597,036
13,800 Linear Technology Corporation 491,694
14,600 LSI Logic Corporation(b) 108,624
131,600 Lucent Technologies, Inc.(b,c) 443,492
11,100 Maxim Integrated Products, Inc. 510,489
2,700 Mercury Interactive Corporation(b) 114,885
6,700 Microchip Technology, Inc. 187,734
12,800 Micron Technology, Inc.(b) 174,336
139,300 Microsoft Corporation 3,617,621
43,200 Motorola, Inc. 788,400
7,300 National Semiconductor Corporation(b) 297,767
6,800 Network Appliance, Inc.(b) 126,616
10,900 Network Associates, Inc.(b) 170,912
26,900 Nokia Corporation ADR 376,869
48,200 Nortel Networks Corporation(b) 180,268
2,800 NVE Corporation(b,c) 101,416
5,000 NVIDIA Corporation(b) 102,700
51,500 On Semiconductor Corporation(b) 248,745
16,700 Opsware, Inc.(b,c) 122,244
167,400 Oracle Corporation(b) 1,878,228
47,100 Parametric Technology Corporation(b) 215,718
13,400 Pinnacle Systems, Inc.(b) 105,458
14,300 PMC-Sierra, Inc.(b,c) 173,745
19,600 QUALCOMM, Inc. 1,224,216
17,900 Red Hat, Inc.(b,c) 406,509
9,500 SAP AG 354,160
14,100 Siebel Systems, Inc.(b) 144,948
17,600 STMicroelectronics NV(b) 383,152
9,600 Storage Technology Corporation(b) 252,192
8,600 Symantec Corporation 387,430
8,600 Symbol Technologies, Inc. 103,200
17,600 Taiwan Semiconductor Manufacturing Company, Ltd.
ADR(b,c) 167,728
9,900 Telefonaktiebolaget LM Ericsson(b,c) 264,033
9,300 Teradyne, Inc.(b) 189,534
42,700 Texas Instruments, Inc. 1,071,770
27,600 VeriSign, Inc.(b) 445,188
4,400 VERITAS Software Corporation(b) 117,348
6,000 Vishay Intertechnology, Inc.(b) 104,400
61,600 Wind River Systems, Inc.(b,c) 576,576
12,100 Xilinx, Inc.(b) 406,923
12,600 Yahoo!, Inc.(b) 635,796
- -------------------------------------------------------------------------------------------------------------------------
Total Information Technology 40,514,116
- -------------------------------------------------------------------------------------------------------------------------
Total Common Stock (cost $52,445,962) $46,198,177
=========================================================================================================================
Maturity
Shares Collateral Held for Securities Loaned (5.9%) Interest Rate (d) Date Value
- -------------------------------------------------------------------------------------------------------------------------
3,007,794 State Street Navigator Securities Lending Prime
Portfolio 1.070% N/A $3,007,794
- -------------------------------------------------------------------------------------------------------------------------
Total Collateral Held for Securities Loaned (cost
$3,007,794) 3,007,794
=========================================================================================================================
Maturity
Shares Short-Term Investments (3.5%) Interest Rate (d) Date Value
- -------------------------------------------------------------------------------------------------------------------------
1,808,961 The AAL Money Market Fund 0.530% N/A $1,808,961
- -------------------------------------------------------------------------------------------------------------------------
Total Short-Term Investments (at amortized cost) 1,808,961
- -------------------------------------------------------------------------------------------------------------------------
Total Investments (cost $57,262,717) $51,014,932
=========================================================================================================================
(a) The categories of investments are shown as apercentage of total investments.
(b) Non-income producing security.
(c) All or a portion of the security is on loan as discussed in item 2(L) of the Notes to Financial
Statements.
(d) The interest rate shown reflects the yield.
The accompanying notes to the financial statements
are an integral part of this schedule.
The AAL Aggressive Growth Fund
Schedule of Investments as of April 30, 2004 (a)
Shares Common Stock (95.8%) Value
- -------------------------------------------------------------------------------------------------------------------------
Communications Services (0.9%)
- -------------------------------------------------------------------------------------------------------------------------
9,350 Nextel Communications, Inc.(b,c) $223,091
3,200 Sprint Corporation (FON Group) 57,248
4,800 Triton PCS Holdings, Inc.(b) 24,048
5,500 Vodafone Group plc ADR 134,970
- -------------------------------------------------------------------------------------------------------------------------
Total Communications Services 439,357
=========================================================================================================================
Consumer Discretionary (16.3%)
- -------------------------------------------------------------------------------------------------------------------------
1,800 Abercrombie & Fitch Company 56,610
2,350 Amazon.com, Inc.(b) 102,131
1,800 AnnTaylor Stores Corporation(b) 72,954
1,850 Aztar Corporation(b) 47,915
5,700 Bed Bath & Beyond, Inc.(b) 211,584
5,400 Best Buy Company, Inc. 292,950
7,600 Clear Channel Communications, Inc. 315,324
4,050 Coach, Inc. 172,530
10,035 Comcast Corporation(b) 290,915
850 D.R. Horton, Inc. 24,480
7,050 eBay, Inc. 562,731
5,000 EchoStar Communications Corporation(b) 165,950
1,450 Entercom Communications Corporation(b) 66,120
1,350 Gannett Company, Inc. 117,018
5,950 Gap, Inc. 130,960
2,500 General Motors Corporation 118,550
1,700 Harley-Davidson, Inc. 95,744
9,920 Home Depot, Inc. 349,085
7,450 InterActiveCorp(b) 237,432
8,100 International Game Technology 305,694
3,950 Kohl's Corporation(b) 165,070
8,386 Liberty Media Corporation(b) 91,743
9,550 Lowe's Companies, Inc. 497,173
3,300 McDonald's Corporation 89,859
2,150 Michaels Stores, Inc. 107,564
1,900 NIKE, Inc.(c) 136,705
2,300 Omnicom Group, Inc. 182,873
2,350 Pulte Homes, Inc. 115,550
6,300 Staples, Inc. 162,288
4,400 Starbucks Corporation(b) 170,984
4,000 Starwood Hotels & Resorts Worldwide, Inc. 159,160
1,650 Station Casinos, Inc. 74,382
8,450 Target Corporation 366,476
2,400 Tiffany & Company 93,600
18,645 Time Warner, Inc.(b) 313,609
4,900 TJX Companies, Inc. 120,393
2,300 Toll Brothers, Inc.(b) 91,011
7,350 Univision Communications, Inc.(b) 248,798
13,340 Viacom, Inc. 515,591
8,650 Walt Disney Company 199,210
2,000 Williams-Sonoma, Inc.(b) 64,960
- -------------------------------------------------------------------------------------------------------------------------
Total Consumer Discretionary 7,703,676
=========================================================================================================================
Consumer Staples (7.7%)
- -------------------------------------------------------------------------------------------------------------------------
2,450 Altria Group, Inc. 135,681
2,500 Anheuser-Busch Companies, Inc. 128,100
1,400 Avon Products, Inc. 117,600
9,800 Coca-Cola Company 495,586
1,700 Colgate-Palmolive Company 98,396
1,550 Costco Wholesale Corporation(b) 58,048
5,300 Gillette Company 216,876
8,350 PepsiCo, Inc. 454,992
6,600 Procter & Gamble Company 697,950
5,450 SYSCO Corporation 208,462
13,350 Wal-Mart Stores, Inc. 760,950
7,400 Walgreen Company 255,152
- -------------------------------------------------------------------------------------------------------------------------
Total Consumer Staples 3,627,793
=========================================================================================================================
Energy (2.6%)
- -------------------------------------------------------------------------------------------------------------------------
1,204 Apache Corporation 50,411
3,550 Baker Hughes, Inc. 130,214
4,100 BJ Services Company(b) 182,450
1,700 Burlington Resources, Inc. 114,359
7,500 Chesapeake Energy Corporation 103,125
4,000 Exxon Mobil Corporation 170,200
2,900 Nabors Industries, Ltd.(b) 128,644
2,300 Schlumberger, Ltd. 134,619
2,405 Smith International, Inc.(b) 131,674
1,150 Transocean, Inc.(b) 31,936
1,750 XTO Energy, Inc. 46,725
- -------------------------------------------------------------------------------------------------------------------------
Total Energy 1,224,357
=========================================================================================================================
Financials (10.7%)
- -------------------------------------------------------------------------------------------------------------------------
1,600 ACE, Ltd. 70,144
2,000 Allstate Corporation 91,800
6,200 American Express Company 303,490
9,850 American International Group, Inc. 705,752
3,750 Ameritrade Holding Corporation(b) 45,900
2,060 Bank of America Corporation 165,809
3,250 Capital One Financial Corporation 212,972
7,200 Charles Schwab Corporation 74,088
16,450 Citigroup, Inc. 791,080
2,150 Countrywide Financial Corporation 127,495
1,550 Eaton Vance Corporation 56,590
5,715 Federal National Mortgage Corporation 392,735
1,850 Friedman, Billings, Ramsey Group, Inc. 34,225
400 Golden West Financial Corporation 42,044
3,900 Goldman Sachs Group, Inc. 376,350
3,900 J.P. Morgan Chase & Company 146,640
1,000 Legg Mason, Inc. 92,060
1,950 Lehman Brothers Holdings, Inc. 143,130
8,350 MBNA Corporation 203,573
5,500 Merrill Lynch & Company, Inc. 298,265
3,400 Morgan Stanley and Company 174,726
2,050 PMI Group, Inc. 88,212
6,000 Providian Financial Corporation(b) 72,780
6,000 SLM Corporation 229,860
4,450 U.S. Bancorp 114,098
- -------------------------------------------------------------------------------------------------------------------------
Total Financials 5,053,818
=========================================================================================================================
Health Care (19.2%)
- -------------------------------------------------------------------------------------------------------------------------
4,750 Abbott Laboratories 209,095
850 Aetna, Inc. 70,338
1,150 Allergan, Inc. 101,258
13,700 Amgen, Inc.(b) 770,899
1,400 Anthem, Inc.(b,c) 124,012
1,550 Biogen Idec, Inc.(b) 91,450
11,500 Boston Scientific Corporation 473,685
1,800 Cardinal Health, Inc. 131,850
6,296 Caremark Rx, Inc.(b) 213,120
1,050 Cephalon, Inc.(b,c) 59,756
1,050 Dentsply International, Inc. 50,883
4,450 Eli Lilly and Company 328,454
3,540 Forest Laboratories, Inc.(b) 228,259
4,900 Genentech, Inc.(b) 601,720
2,000 Genzyme Corporation(b) 87,120
5,150 Gilead Sciences, Inc.(b) 313,274
3,400 Guidant Corporation 214,234
1,700 HCA, Inc. 69,071
13,250 Johnson & Johnson 715,898
2,400 McKesson Corporation 78,864
10,830 Medtronic, Inc. 546,482
1,300 Neurocrine Biosciences, Inc.(b,c) 85,319
47,235 Pfizer, Inc. 1,689,121
3,150 St. Jude Medical, Inc.(b) 240,219
1,800 Stryker Corporation 178,074
5,200 Teva Pharmaceutical Industries, Ltd. 320,112
6,850 UnitedHealth Group, Inc. 421,138
1,000 WellPoint Health Networks, Inc.(b) 111,690
6,660 Wyeth Corporation 253,546
3,550 Zimmer Holdings, Inc.(b) 283,468
- -------------------------------------------------------------------------------------------------------------------------
Total Health Care 9,062,409
=========================================================================================================================
Industrials (9.0%)
- -------------------------------------------------------------------------------------------------------------------------
5,300 3M Company 458,344
2,000 Apollo Group, Inc.(b) 181,760
1,850 Career Education Corporation 118,400
2,300 Caterpillar, Inc. 178,779
8,100 Cendant Corporation 191,808
3,900 Continental Airlines, Inc.(b) 41,574
2,800 Corinthian Colleges, Inc. 85,736
1,600 Danaher Corporation 148,032
1,300 Eaton Corporation 77,194
2,650 FedEx Corporation 190,562
550 General Dynamics Corporation 51,491
41,950 General Electric Company 1,256,402
1,350 Illinois Tool Works, Inc. 116,384
1,250 Ingersoll-Rand Company 80,688
2,250 L-3 Communications Holdings, Inc.(c) 138,915
1,700 Manpower, Inc. 79,730
3,250 Masco Corporation 91,032
1,950 Rockwell Automation, Inc. 63,746
9,900 Tyco International, Ltd. 271,755
3,900 United Parcel Service, Inc. 273,585
1,950 United Technologies Corporation 168,207
- -------------------------------------------------------------------------------------------------------------------------
Total Industrials 4,264,124
=========================================================================================================================
Information Technology (28.3%)
- -------------------------------------------------------------------------------------------------------------------------
6,150 Accenture, Ltd.(b) 146,186
13,000 ADC Telecommunications, Inc.(b) 32,500
3,450 Adobe Systems, Inc. 142,623
900 Affiliated Computer Services, Inc.(b) 43,650
3,550 Altera Corporation(b) 71,036
7,010 Analog Devices, Inc. 298,626
3,950 Andrew Corporation(b) 66,952
3,350 Apple Computer, Inc.(b) 86,196
21,800 Applied Materials, Inc.(b) 397,414
3,800 BEA Systems, Inc.(b) 43,358
3,350 Broadcom Corporation(b) 126,496
3,900 Check Point Software Technologies, Ltd.(b) 91,377
2,500 CheckFree Corporation(b) 75,100
59,050 Cisco Systems, Inc.(b) 1,232,374
2,650 Cognos, Inc.(b) 83,554
5,500 Comverse Technology, Inc.(b) 89,980
13,850 Corning, Inc.(b) 152,766
3,050 Cypress Semiconductor Corporation(b,c) 42,608
25,100 Dell, Inc.(b) 871,221
7,070 Electronic Arts, Inc.(c) 357,883
1,800 Electronics for Imaging, Inc.(b) 45,684
26,200 EMC Corporation(b) 292,392
8,250 First Data Corporation 374,468
3,250 Fiserv, Inc.(b) 118,820
6,900 Flextronics International, Ltd.(b) 111,090
5,000 Hewlett-Packard Company 98,500
3,950 Ingram Micro, Inc.(b) 47,202
42,650 Intel Corporation 1,097,384
3,000 International Business Machines Corporation 264,510
1,050 Intuit, Inc.(b) 44,594
1,900 Jabil Circuit, Inc.(b) 50,141
11,800 JDS Uniphase Corporation(b) 35,872
4,200 Juniper Networks, Inc.(b,c) 91,896
1,450 KLA-Tencor Corporation(b) 60,422
1,400 Lexmark International, Inc.(b) 126,644
5,150 Linear Technology Corporation 183,494
4,300 Maxim Integrated Products, Inc. 197,757
1,950 Mercury Interactive Corporation(b) 82,972
4,200 Microchip Technology, Inc. 117,684
58,250 Microsoft Corporation 1,512,752
12,100 Motorola, Inc. 220,825
4,000 Nasdaq (100) Trust(c) 139,200
2,600 National Semiconductor Corporation(b) 106,054
2,400 Netgear, Inc.(b) 26,112
2,450 Network Appliance, Inc.(b) 45,619
3,650 Network Associates, Inc.(b) 57,232
5,015 Nokia Corporation ADR 70,260
22,250 Nortel Networks Corporation(b) 83,215
7,600 Novell, Inc.(b) 73,264
25,800 Oracle Corporation(b) 289,476
4,900 Paychex, Inc.(d) 182,672
7,350 QUALCOMM, Inc. 459,081
1,100 Research in Motion, Ltd.(b) 95,436
1,850 Sabre Holdings Corporation 43,642
4,300 SAP AG 160,304
5,400 Siebel Systems, Inc.(b) 55,512
6,550 Symantec Corporation 295,078
3,500 Telefonaktiebolaget LM Ericsson(b,c) 93,345
2,650 Teradyne, Inc.(b) 54,007
13,500 Texas Instruments, Inc. 338,850
4,300 Unisys Corporation(b) 56,029
15,200 United Microelectronics Corporation ADR(b,c) 79,040
4,300 VeriSign, Inc.(b) 69,359
8,550 VERITAS Software Corporation(b) 228,028
1,550 Waters Corporation(b) 66,882
5,800 Xilinx, Inc.(b) 195,054
7,800 Yahoo!, Inc.(b) 393,588
- -------------------------------------------------------------------------------------------------------------------------
Total Information Technology 13,383,342
=========================================================================================================================
Materials (0.5%)
- -------------------------------------------------------------------------------------------------------------------------
1,600 Ecolab, Inc. 47,680
1,650 International Steel Group, Inc.(b) 47,932
1,300 Peabody Energy Corporation 60,957
2,500 Praxair, Inc. 91,375
- -------------------------------------------------------------------------------------------------------------------------
Total Materials 247,944
=========================================================================================================================
Miscellaneous (0.6%)
- -------------------------------------------------------------------------------------------------------------------------
2,700 S&P 400 Mid-Cap Depository Receipts 287,685
- -------------------------------------------------------------------------------------------------------------------------
Total Miscellaneous 287,685
- -------------------------------------------------------------------------------------------------------------------------
Total Common Stock (cost $40,169,493) 45,294,505
=========================================================================================================================
Shares or
Principal Interest Maturity
Amount Collateral Held for Securities Loaned (2.8%) Rate (e) Date Value
- -------------------------------------------------------------------------------------------------------------------------
$188,960 BNP Paribas Letter of Credit 0.150% 10/21/2004 $188,960
1,119,263 State Street Navigator Securities Lending Prime
Portfolio 1.070 N/A 1,119,262
- -------------------------------------------------------------------------------------------------------------------------
Total Collateral Held for Securities Loaned (cost
$1,308,222) 1,308,222
=========================================================================================================================
Interest Maturity
Shares Short-Term Investments (1.4%) Rate (e) Date Value
- -------------------------------------------------------------------------------------------------------------------------
645,986 The AAL Money Market Fund 0.530% N/A $645,986
- -------------------------------------------------------------------------------------------------------------------------
Total Short-Term Investments (at amortized cost) 645,986
- -------------------------------------------------------------------------------------------------------------------------
Total Investments (cost $42,123,701) $47,248,713
=========================================================================================================================
(a) The categories of investments are shown as apercentage of total
investments.
(b) Non-income producing security.
(c) All or a portion of the security is on loan as discussed in item 2(L)
of the Notes to Financial Statements.
(d) At April 30, 2004, 200 shares of Omnicom Group, Inc. common stock
valued at $15,902 were earmarked as collateral to cover call options
written as follows:
Number of Exercise Expiration
Call Options Contracts Price Date Value
- -------------------------------------------------------------------------------------------------------------------------
Omnicom Group, Inc. 2 $80 5/22/2004 $290
(e) The interest rate shown reflects the yield.
The accompanying notes to the financial statements
are an integral part of this schedule.
The AAL Small Cap Stock Fund
Schedule of Investments as of April 30, 2004 (a)
Shares Common Stock (81.2%) Value
- -------------------------------------------------------------------------------------------------------------------------
Consumer Discretionary (15.5%)
- -------------------------------------------------------------------------------------------------------------------------
79,700 ADVO, Inc. $2,502,580
81,300 Aeropostale, Inc. 1,787,787
40,800 AnnTaylor Stores Corporation(b) 1,653,624
58,600 Applebee's International, Inc. 2,272,508
67,500 Arctic Cat, Inc. 1,603,125
49,400 Autoliv, Inc. 2,100,982
73,000 Boyd Gaming Corporation 1,715,500
96,800 Cooper Tire & Rubber Company 2,070,552
67,050 Cost Plus, Inc.(b) 2,427,210
38,000 Entercom Communications Corporation(b) 1,732,800
57,000 Ethan Allen Interiors, Inc. 2,369,490
97,025 Fossil, Inc. 2,376,142
61,800 Gander Mountain Company(b) 1,387,410
29,000 Gentex Corporation 1,140,570
102,900 Gymboree Corporation(b,c) 1,816,185
164,000 Interface, Inc.(b) 1,398,920
56,400 International Speedway Corporation 2,376,132
52,300 Lee Enterprises, Inc. 2,498,894
90,300 Linens 'n Things, Inc.(b) 2,929,332
34,022 M.D.C. Holdings, Inc.(c) 2,102,219
87,900 Marine Products Corporation 1,554,072
69,100 MarineMax, Inc.(b) 1,970,041
73,900 Maytag Corporation 2,061,810
42,400 P.F. Chang's China Bistro, Inc.(b,c) 2,071,664
134,000 Quiksilver, Inc. 2,898,420
199,300 Radio One, Inc.(b) 3,802,644
75,000 Red Robin Gourmet Burgers, Inc.(b,c) 2,156,250
54,900 Regis Corporation 2,383,758
74,050 SCP Pool Corporation 2,977,550
66,900 Select Comfort Corporation(b,c) 1,621,656
56,100 Shuffle Master, Inc.(c) 1,837,275
50,700 Toll Brothers, Inc.(b,c) 2,006,199
113,800 Toys 'R' Us, Inc.(b) 1,758,210
82,300 West Marine, Inc.(b,c) 2,393,284
61,800 Winnebago Industries, Inc.(c) 1,781,694
71,600 Wolverine World Wide, Inc. 1,924,608
- -------------------------------------------------------------------------------------------------------------------------
Total Consumer Discretionary 75,461,097
=========================================================================================================================
Consumer Staples (2.3%)
- -------------------------------------------------------------------------------------------------------------------------
190,600 Casey's General Stores, Inc.(c) 3,156,336
45,800 Church & Dwight Company, Inc.(c) 2,058,710
49,200 Dean Foods Company 1,652,136
65,900 NBTY, Inc.(b) 2,448,844
62,200 WD-40 Company 1,887,770
- -------------------------------------------------------------------------------------------------------------------------
Total Consumer Staples 11,203,796
=========================================================================================================================
Energy (5.7%)
- -------------------------------------------------------------------------------------------------------------------------
84,800 Cimarex Energy Company(b) 2,339,632
168,500 Energy Partners, Ltd.(b,c) 2,359,000
68,500 Evergreen Resources, Inc.(c) 2,748,905
176,100 Key Energy Services, Inc.(b) 1,877,226
94,500 Maverick Tube Corporation(b) 2,138,535
54,900 Newfield Exploration Company(b) 2,892,132
70,700 Patina Oil & Gas Corporation 1,965,460
75,000 Patterson-UTI Energy, Inc.(b,c) 2,714,250
41,600 Precision Drilling Corporation(b) 1,992,640
68,200 St. Mary Land & Exploration Company 2,465,430
20,200 Teekay Shipping Corporation(c) 1,228,160
85,600 Ultra Petroleum Corporation(b) 2,811,104
- -------------------------------------------------------------------------------------------------------------------------
Total Energy 27,532,474
=========================================================================================================================
Financials (13.5%)
- -------------------------------------------------------------------------------------------------------------------------
62,850 Affiliated Managers Group, Inc.(c) 3,060,795
24,900 Alexandria Real Estate Equities, Inc. 1,414,818
39,400 AMB Property Corporation 1,193,820
128,400 Argonaut Group, Inc.(b) 2,375,400
54,963 BOK Financial Corporation(b) 2,146,855
53,300 Corus Bankshares, Inc. 2,012,075
32,300 Developers Diversified Realty Corporation 1,057,825
42,700 Eastgroup Properties, Inc. 1,236,165
55,550 First BanCorp 2,047,573
62,300 First Midwest Bancorp, Inc. 2,102,625
86,200 HCC Insurance Holdings, Inc. 2,760,124
104,900 HRPT Properties Trust 1,001,795
81,000 Investors Financial Services Corporation(c) 3,148,470
44,000 MAF Bancorp, Inc. 1,797,400
62,600 Main Street Banks, Inc.(c) 1,690,200
33,500 MB Financial, Inc. 1,180,875
67,345 Mercantile Bank Corporation(c) 2,421,053
25,500 Mills Corporation 1,035,300
31,400 Piper Jaffray Companies(b) 1,520,388
84,300 Platinum Underwriters Holdings, Ltd.(c) 2,695,914
41,500 PrivateBancorp, Inc.(c) 2,295,780
107,900 Providian Financial Corporation(b) 1,308,827
67,950 Raymond James Financial, Inc. 1,706,904
46,600 Reinsurance Group of America 1,809,012
76,000 RLI Corporation(c) 2,641,000
14,700 S&P SmallCap 600 Index Fund I Shares(c) 2,014,782
32,700 SL Green Realty Corporation 1,334,160
52,300 Southwest Bancorporation of Texas, Inc. 2,127,041
174,300 Sterling Bancshares, Inc.(c) 2,215,353
31,700 Stewart Information Services Corporation 1,125,350
58,900 UCBH Holdings, Inc. 2,180,478
61,200 United Bankshares, Inc. 1,836,612
79,052 Washington Federal, Inc. 1,846,655
163,200 Winston Hotels, Inc. 1,503,072
45,000 Wintrust Financial Corporation 2,137,050
- -------------------------------------------------------------------------------------------------------------------------
Total Financials 65,981,546
=========================================================================================================================
Health Care (11.0%)
- -------------------------------------------------------------------------------------------------------------------------
94,200 Advanced Medical Optics, Inc.(b,c) 2,971,068
46,100 Community Health Systems, Inc.(b) 1,188,919
43,500 Cooper Companies, Inc. 2,349,000
77,800 Cytyc Corporation(b) 1,664,920
54,100 Dade Behring Holdings, Inc.(b) 2,488,600
24,300 Dendrite International, Inc.(b) 416,502
374,250 Encore Medical Corporation(b) 2,937,862
34,900 Henry Schein, Inc.(b) 2,459,403
132,100 Intuitive Surgical, Inc.(b) 2,133,415
37,700 KOS Pharmaceuticals, Inc.(b,c) 1,551,732
56,900 LifePoint Hospitals, Inc.(b) 2,034,744
37,800 Martek Biosciences Corporation(b,c) 2,399,922
143,000 Medarex, Inc.(b,c) 1,362,790
55,700 Medicis Pharmaceutical Corporation(c) 2,390,644
38,000 Millipore Corporation(b) 1,992,340
53,700 PacifiCare Health Systems, Inc. 1,920,312
86,100 Perrigo Company 1,857,177
61,700 Protein Design Labs, Inc.(b) 1,510,416
42,200 Renal Care Group, Inc.(b) 2,088,056
42,900 ResMed, Inc.(b) 2,114,112
222,700 Savient Pharmaceuticals, Inc.(b) 835,125
31,800 Sierra Health Services, Inc.(b) 1,181,370
62,000 TECHNE Corporation(b) 2,415,520
52,600 Telik, Inc.(b) 1,234,522
123,900 United Surgical Partners International, Inc.(b) 4,487,659
56,900 Ventana Medical Systems, Inc.(b,c) 2,815,981
106,600 Vertex Pharmaceuticals, Inc.(b) 921,024
- -------------------------------------------------------------------------------------------------------------------------
Total Health Care 53,723,135
=========================================================================================================================
Industrials (14.6%)
- -------------------------------------------------------------------------------------------------------------------------
92,300 American Power Conversion Corporation 1,722,318
131,000 Artesyn Technologies, Inc.(b,c) 1,206,510
21,600 Briggs & Stratton Corporation 1,512,000
94,400 Casella Waste Systems, Inc.(b,c) 1,368,800
60,500 Chicago Bridge and Iron Company 1,739,375
71,400 Consolidated Graphics, Inc.(b) 2,664,648
73,300 Donaldson Company, Inc. 2,010,619
61,900 Dycom Industries, Inc.(b) 1,459,602
77,600 EDO Corporation 1,761,520
241,800 Exult, Inc.(b,c) 1,477,398
92,100 Federal Signal Corporation(c) 1,676,220
54,700 G & K Services, Inc. 2,073,130
59,600 Genesee and Wyoming, Inc. 1,373,780
25,200 Genlyte Group, Inc.(b) 1,444,464
59,937 Graco, Inc. 1,690,223
86,600 Granite Construction, Inc. 1,719,010
111,145 Heartland Express, Inc. 2,728,610
78,500 IDEX Corporation 3,709,125
39,550 Intersections, Inc.(b) 976,885
45,300 Jacobs Engineering Group, Inc.(b) 1,889,463
161,500 Jacuzzi Brands, Inc.(b) 1,411,510
149,300 KForce, Inc.(b,c) 1,403,420
38,000 Landstar System, Inc. 1,708,480
58,600 Lindsay Manufacturing Company 1,385,890
97,400 Manitowoc Company, Inc.(c) 2,961,934
66,900 Mercury Computer Systems, Inc.(b,c) 1,498,560
63,000 Monster Worldwide, Inc.(b) 1,613,430
117,400 MSC Industrial Direct Company, Inc. 3,364,684
38,800 Oshkosh Truck Corporation 1,986,560
42,200 Pacer International, Inc.(b) 793,360
47,300 Precision Castparts Corporation 2,128,973
41,200 Ritchie Bros. Auctioneers Incorporated 2,420,500
33,700 Roper Industries, Inc. 1,636,135
135,900 SkyWest, Inc. 2,473,380
91,100 Tetra Tech, Inc.(b) 1,513,171
28,300 Toro Company 1,645,645
47,600 United Defense Industries, Inc.(b) 1,649,340
54,700 Waste Connections, Inc.(b) 2,202,769
49,300 Watson Wyatt & Company Holdings(b) 1,293,139
- -------------------------------------------------------------------------------------------------------------------------
Total Industrials 71,294,580
=========================================================================================================================
Information Technology (13.9%)
- -------------------------------------------------------------------------------------------------------------------------
45,400 Actel Corporation(b) 904,368
88,700 Acxiom Corporation 2,052,518
37,600 ADTRAN, Inc. 921,576
62,400 Advanced Digital Information Corporation(b) 658,944
76,200 Akamai Technologies, Inc.(b,c) 900,684
175,500 Arris Group, Inc.(b,c) 1,049,490
68,900 Autodesk, Inc. 2,308,150
53,900 Avocent Corporation(b) 1,729,651
80,000 Axcelis Technologies, Inc.(b) 840,800
34,300 BARRA, Inc.(c) 1,401,155
150,900 Bell Microproducts, Inc.(b,c) 983,868
110,900 BISYS Group, Inc.(b) 1,608,050
32,400 CACI International, Inc.(b) 1,474,200
35,900 Cymer, Inc.(b,c) 1,148,082
127,900 Cypress Semiconductor Corporation(b,c) 1,786,763
39,700 Dionex Corporation(b) 2,025,891
42,500 Fair Isaac Corporation 1,433,100
67,900 Global Payments, Inc. 3,257,842
201,100 Ingram Micro, Inc.(b) 2,403,145
77,400 Inter-Tel, Inc.(c) 1,852,956
36,600 International Rectifier Corporation(b) 1,450,824
47,950 Kronos, Inc. 1,749,216
47,800 Littelfuse, Inc.(b) 1,835,520
33,700 Manhattan Associates, Inc.(b,c) 905,519
74,600 Metrologic Instruments, Inc.(c) 1,172,712
143,200 MPS Group, Inc.(b) 1,566,608
117,000 MSC.Software Corporation(b,c) 1,090,440
143,700 Opsware, Inc.(b,c) 1,051,884
519,200 Parametric Technology Corporation(b) 2,377,936
83,400 Photronics, Inc.(b) 1,241,826
144,100 Pinnacle Systems, Inc.(b) 1,134,067
67,300 Plantronics, Inc.(b) 2,554,035
138,500 Plexus Corporation(b,c) 1,991,630
145,200 Powerwave Technologies, Inc.(b,c) 983,004
142,900 Skyworks Solutions, Inc.(b,c) 1,223,224
78,400 Tech Data Corporation(b) 2,665,600
252,800 Three-Five Systems, Inc.(b,c) 1,286,752
16,600 Tollgrade Communications, Inc.(b,c) 202,188
42,600 Varian Semiconductor Equipment Associates, Inc.(b,c) 1,387,056
35,600 Varian, Inc.(b) 1,461,024
115,700 Vishay Intertechnology, Inc.(b,c) 2,013,180
265,800 Wind River Systems, Inc.(b,c) 2,487,888
39,050 Zebra Technologies Corporation 2,861,974
- -------------------------------------------------------------------------------------------------------------------------
Total Information Technology 67,435,340
=========================================================================================================================
Materials (3.5%)
- -------------------------------------------------------------------------------------------------------------------------
59,300 H.B. Fuller Company 1,624,820
101,500 MacDermid, Inc. 3,286,570
93,800 NOVA Chemicals Corporation(c) 2,391,900
108,900 Packaging Corporation of America 2,393,622
54,700 Peabody Energy Corporation 2,564,883
73,900 RPM International, Inc. 1,114,412
56,100 Schweitzer-Mauduit International, Inc. 1,738,539
78,700 Steel Dynamics, Inc.(b) 1,894,309
- -------------------------------------------------------------------------------------------------------------------------
Total Materials 17,009,055
=========================================================================================================================
Utilities (1.2%)
- -------------------------------------------------------------------------------------------------------------------------
71,846 Aqua America, Inc. 1,469,251
57,100 Energen Corporation 2,361,085
50,000 Piedmont Natural Gas Company, Inc.(c) 2,025,000
- -------------------------------------------------------------------------------------------------------------------------
Total Utilities 5,855,336
- -------------------------------------------------------------------------------------------------------------------------
Total Common Stock (cost $324,987,102) 395,496,359
=========================================================================================================================
Shares or
Principal Interest Maturity
Amount Collateral Held for Securities Loaned (14.5%) Rate (d) Date Value
- -------------------------------------------------------------------------------------------------------------------------
70,589,884 State Street Navigator Securities Lending Prime
Portfolio 1.070% N/A $70,589,884
$180,931 U.S. Treasury Bond Strips 5.298 2/15/2017 92,852
- -------------------------------------------------------------------------------------------------------------------------
Total Collateral Held for Securities Loaned (cost
$70,682,736) 70,682,736
=========================================================================================================================
Shares or
Principal Interest Maturity
Amount Short-Term Investments (4.3%) Rate (d) Date Value
- -------------------------------------------------------------------------------------------------------------------------
11,384,032 The AAL Money Market Fund 0.530% N/A $11,384,032
$9,400,000 Total Capital SA 1.030 5/3/2004 9,399,462
- -------------------------------------------------------------------------------------------------------------------------
Total Short-Term Investments (at amortized cost) 20,783,494
- -------------------------------------------------------------------------------------------------------------------------
Total Investments (cost $416,453,332) $486,962,589
=========================================================================================================================
(a) The categories of investments are shown as apercentage of total
investments.
(b) Non-income producing security.
(c) All or a portion of the security is on loan as discussed in item 2(L)
of the Notes to Financial Statements.
(d) The interest rate shown reflects the coupon rate, yield, or, for
securities purchased at a discount, the discount rate at the date of
purchase.
The accompanying notes to the financial statements
are an integral part of this schedule.
The AAL Small Cap Index Fund II
Schedule of Investments as of April 30, 2004 (a)
Shares Common Stock (77.1%) Value
- -------------------------------------------------------------------------------------------------------------------------
Communications Services (0.3%)
- -------------------------------------------------------------------------------------------------------------------------
1,700 Boston Communications Group, Inc.(b,c) $18,292
1,900 Commonwealth Telephone Enterprises, Inc.(b,c) 79,154
4,700 General Communication, Inc.(b) 41,830
- -------------------------------------------------------------------------------------------------------------------------
Total Communications Services 139,276
=========================================================================================================================
Consumer Discretionary (13.9%)
- -------------------------------------------------------------------------------------------------------------------------
1,200 4Kids Entertainment, Inc.(b,c) 26,220
2,750 Aaron Rents, Inc.(c) 79,640
1,500 Action Performance Companies, Inc.(c) 23,520
1,800 Advanced Marketing Services, Inc.(c) 17,874
2,550 ADVO, Inc. 80,070
2,100 Applica, Inc.(b) 23,562
1,900 Arctic Cat, Inc. 45,125
2,400 Argosy Gaming Company(b) 89,256
1,200 Ashworth, Inc.(b) 10,200
2,900 Aztar Corporation(b) 75,110
2,900 Bally Total Fitness Holding Corporation(b,c) 11,948
1,100 Bassett Furniture Industries, Inc. 19,734
1,500 Brown Shoe Company, Inc.(c) 54,870
1,200 Building Materials Holding Corporation 19,728
3,700 Burlington Coat Factory Warehouse Corporation(c) 70,152
1,900 Cato Corporation(c) 38,038
3,250 CEC Entertainment, Inc. 111,052
5,900 Champion Enterprises, Inc.(b) 64,251
2,200 Children's Place Retail Stores, Inc.(b,c) 57,948
3,200 Christopher & Banks Corporation 57,248
1,500 Coachmen Industries, Inc.(c) 23,895
2,500 Concord Camera Corporation(b,c) 12,625
1,800 Cost Plus, Inc.(b) 65,160
1,200 Department 56, Inc.(b) 19,284
2,500 Dress Barn, Inc.(b,c) 42,050
2,100 Electronics Boutique Holdings Corporation(b) 56,805
1,300 Enesco Group, Inc.(b) 16,861
3,100 Ethan Allen Interiors, Inc. 128,867
2,670 Fedders Corporation(c) 14,445
3,200 Fleetwood Enterprises, Inc.(b,c) 46,400
5,900 Fossil, Inc. 144,491
3,300 Fred's, Inc. 61,281
1,800 Genesco, Inc.(b,c) 40,050
2,700 Goody's Family Clothing, Inc.(c) 33,723
1,900 Group 1 Automotive, Inc.(b) 65,664
2,000 Guitar Center, Inc.(b,c) 83,040
2,500 Gymboree Corporation(b,c) 44,125
700 Haggar Corporation(c) 13,748
1,700 Hancock Fabrics, Inc. 25,262
2,000 Haverty Furniture Companies, Inc. 36,140
2,000 Hibbett Sporting Goods, Inc. 48,560
4,075 Hot Topic, Inc.(c) 90,710
1,900 IHOP Corporation(c) 70,585
1,900 Information Holdings, Inc.(b) 47,215
3,950 Insight Enterprises, Inc.(b) 66,123
4,300 Interface, Inc.(b,c) 36,679
2,200 Intermet Corporation 8,910
1,600 J. Jill Group, Inc.(b) 33,888
3,000 Jack in the Box, Inc.(b) 81,240
2,200 JAKKS Pacific, Inc.(b,c) 38,214
1,810 Jo-Ann Stores, Inc.(b) 51,169
3,000 K-Swiss, Inc.(c) 58,530
2,900 K2, Inc.(b,c) 42,514
2,200 Kellwood Company 86,790
2,400 Landry's Restaurants, Inc. 80,352
4,400 Lay-Z-Boy, Inc.(c) 91,696
1,200 Libbey, Inc. 31,404
3,800 Linens 'n Things, Inc.(b,c) 123,272
2,000 Lone Star Steakhouse & Saloon, Inc.(c) 61,500
2,724 M.D.C. Holdings, Inc. 168,316
2,600 Marcus Corporation 42,120
1,900 Meade Instruments Corporation(b,c) 6,745
3,100 Men's Wearhouse, Inc.(b) 79,019
1,100 Meritage Corporation(b) 74,635
1,300 Midas, Inc.(b) 23,738
2,400 Monaco Coach Corporation 62,568
2,700 Movie Gallery, Inc. 52,434
2,100 Multimedia Games, Inc.(c) 46,788
600 National Presto Industries, Inc. 24,426
2,700 Nautilus Group, Inc.(c) 43,416
520 NVR, Inc.(b) 234,517
1,900 O'Charley's, Inc.(b) 35,891
1,200 OshKosh B'Gosh, Inc.(c) 27,744
1,400 Oxford Industries, Inc.(c) 54,572
2,100 P.F. Chang's China Bistro, Inc.(b,c) 102,606
2,500 Panera Bread Company(b,c) 102,175
1,500 Papa John's International, Inc.(b,c) 50,175
5,000 Pep Boys, Inc.(c) 137,350
2,600 Phillips-Van Heusen Corporation(c) 46,982
3,000 Pinnacle Entertainment, Inc.(b) 34,260
3,700 Polaris Industries, Inc.(c) 158,730
3,900 Prime Hospitality Corporation(b) 39,195
4,700 Quiksilver, Inc. 101,661
2,800 RARE Hospitality International, Inc. 76,636
1,800 Russ Berrie and Company, Inc. 51,354
2,800 Russell Corporation(c) 46,564
3,700 Ryan's Family Steak Houses, Inc.(b) 67,118
1,100 Salton, Inc.(b,c) 9,955
2,950 SCP Pool Corporation 118,620
3,000 Select Comfort Corporation(b,c) 72,720
2,500 ShopKo Stores, Inc.(b,c) 33,150
2,050 Shuffle Master, Inc.(c) 67,138
800 Skyline Corporation 34,192
3,300 Sonic Corporation(b) 106,491
1,800 Standard Motor Products, Inc. 26,280
2,700 Standard Pacific Corporation 136,188
2,400 Steak n Shake Company(b) 45,240
3,500 Stein Mart, Inc.(b) 44,520
3,500 Stride Rite Corporation 37,555
2,300 Sturm, Ruger & Company, Inc. 25,093
1,800 TBC Corporation(b) 50,292
1,400 Thomas Nelson, Inc. 36,624
2,900 Too, Inc.(b,c) 50,866
4,700 Tower Automotive, Inc.(b,c) 24,064
3,100 Tractor Supply Company 121,086
5,000 Triarc Companies, Inc.(c) 52,250
1,400 Ultimate Electronics, Inc.(b,c) 5,950
3,300 Urban Outfitters, Inc. 152,361
2,725 Wet Seal, Inc.(b,c) 15,015
2,800 Winnebago Industries, Inc.(c) 80,724
2,500 WMS Industries, Inc.(b,c) 70,600
3,300 Wolverine World Wide, Inc. 88,704
2,200 Zale Corporation(b) 123,024
- -------------------------------------------------------------------------------------------------------------------------
Total Consumer Discretionary 6,719,250
=========================================================================================================================
Consumer Staples (2.6%)
- -------------------------------------------------------------------------------------------------------------------------
1,600 American Italian Pasta Company(c) 49,536
4,200 Casey's General Stores, Inc. 69,552
3,000 Corn Products International, Inc. 127,500
3,200 Delta and Pine Land Company 77,632
3,900 DIMON, Inc. 27,027
2,100 Duane Reade, Inc.(b) 35,049
3,750 Flowers Foods, Inc. 91,838
3,200 Great Atlantic & Pacific Tea Company, Inc.(b,c) 25,600
3,000 Hain Celestial Group, Inc.(b,c) 59,400
1,600 International Multifoods Corporation(b) 39,760
800 J & J Snack Foods Corporation(b) 30,584
2,500 Lance, Inc. 37,775
3,200 Longs Drug Stores Corporation 62,720
1,100 Nash Finch Company(c) 22,737
1,300 Nature's Sunshine Products, Inc.(c) 18,850
5,600 NBTY, Inc.(b) 208,096
3,900 Performance Food Group Company(b) 137,007
2,400 Ralcorp Holdings, Inc.(b) 83,544
3,200 United Natural Foods, Inc.(c) 80,160
1,500 WD-40 Company(c) 45,525
- -------------------------------------------------------------------------------------------------------------------------
Total Consumer Staples 1,329,892
=========================================================================================================================
Energy (4.8%)
- -------------------------------------------------------------------------------------------------------------------------
1,200 Atwood Oceanics, Inc.(b,c) 43,980
2,700 Cabot Oil & Gas Corporation(c) 96,390
3,200 Cal Dive International, Inc.(b) 86,528
1,400 Carbo Ceramics, Inc. 90,552
3,600 Cimarex Energy Company(b) 99,324
1,600 Dril-Quip, Inc.(b) 27,488
3,600 Evergreen Resources, Inc. 144,468
2,300 Frontier Oil Corporation 40,894
2,100 Hydril Company(b) 53,466
4,300 Input/Output, Inc.(b,c) 33,927
2,400 Lone Star Technologies, Inc.(b,c) 49,200
3,500 Maverick Tube Corporation(b) 79,205
1,700 Nuevo Energy Company(b) 58,650
2,000 Oceaneering International, Inc.(b) 56,000
2,000 Offshore Logistics, Inc.(b) 43,900
5,812 Patina Oil & Gas Corporation 161,574
2,100 Plains Resources, Inc.(b,c) 37,842
1,100 Prima Energy Corporation(b) 40,843
2,500 Remington Oil and Gas Corporation(b) 54,750
1,700 SEACOR Holdings, Inc.(b) 70,516
3,000 Southwestern Energy Company(b) 75,450
2,800 Spinnaker Exploration Company(b) 99,876
2,500 St. Mary Land & Exploration Company(c) 90,375
2,300 Stone Energy Corporation(b) 113,160
2,300 Swift Energy Company(b) 49,887
2,000 TETRA Technologies, Inc. 47,820
3,800 Tom Brown, Inc.(b) 181,944
3,700 Unit Corporation(b) 104,525
2,800 Veritas DGC, Inc.(b,c) 57,204
5,400 Vintage Petroleum, Inc. 81,378
2,400 W-H Energy Services, Inc.(b) 44,112
- -------------------------------------------------------------------------------------------------------------------------
Total Energy 2,315,228
=========================================================================================================================
Financials (10.7%)
- -------------------------------------------------------------------------------------------------------------------------
2,000 Anchor BanCorp Wisconsin, Inc.(c) 48,560
2,600 BankUnited Financial Corporation(b) 68,718
2,300 Boston Private Financial Holdings, Inc.(c) 53,590
5,100 Brookline Bancorp, Inc.(c) 72,216
3,100 Capital Automotive REIT 87,203
2,400 Cash America International, Inc. 51,336
3,300 Chittenden Corporation(c) 100,386
2,400 Colonial Properties Trust(c) 84,672
3,600 Commercial Federal Corporation(c) 92,376
4,300 Commercial Net Lease Realty, Inc.(c) 71,337
3,300 Community First Bankshares, Inc. 106,194
2,600 Delphi Financial Group, Inc. 104,416
3,350 Dime Community Bancshares 57,285
2,400 Downey Financial Corporation(c) 115,800
2,100 East West Bancorp, Inc. 118,293
2,000 Essex Property Trust, Inc. 121,900
1,500 Financial Federal Corporation(b) 46,950
3,350 First BanCorp 123,481
4,100 First Midwest Bancorp, Inc. 138,375
1,400 First Republic Bank(c) 53,340
1,500 FirstFed Financial Corporation(b) 60,630
5,100 Flagstar Bancorp, Inc.(c) 104,193
6,400 Fremont General Corporation 137,920
2,500 Gables Residential Trust(c) 79,500
2,800 Glenborough Realty Trust, Inc. 52,612
3,400 Gold Banc Corporation, Inc.(c) 55,624
3,000 Hilb, Rogal and Hamilton Company(c) 107,550
3,850 Hudson United Bancorp 137,560
3,700 Investment Technology Group, Inc.(b) 53,021
2,300 Irwin Financial Corporation(c) 54,395
2,400 Kilroy Realty Corporation 75,240
1,600 LandAmerica Financial Group, Inc. 65,936
4,100 Lexington Corporate Properties Trust(c) 75,809
3,000 MAF Bancorp, Inc. 122,550
2,950 New Century Financial Corporation(c) 125,168
1,800 Philadelphia Consolidated Holding Corporation(b) 103,932
1,600 Piper Jaffray Companies(b) 77,472
2,500 Presidential Life Corporation 40,225
2,155 Provident Bankshares Corporation(c) 60,706
5,440 Republic Bancorp 70,774
2,100 Rewards Network, Inc.(b,c) 20,601
2,500 Riggs National Corporation 45,225
2,100 RLI Corporation(c) 72,975
900 SCPIE Holdings, Inc.(c) 7,425
2,600 Seacoast Financial Services Corporation 84,084
2,300 Selective Insurance Group, Inc.(c) 82,248
4,000 Shurgard Storage Centers, Inc.(c) 133,200
5,000 South Financial Group, Inc.(c) 138,500
2,900 Southwest Bancorporation of Texas, Inc. 117,943
3,850 Sterling Bancshares, Inc.(c) 48,934
1,800 Sterling Financial Corporation(b) 59,418
1,500 Stewart Information Services Corporation 53,250
3,500 Susquehanna Bancshares, Inc.(c) 81,900
1,593 SWS Group, Inc. 25,870
6,433 TrustCo Bank Corporation NY(c) 81,120
3,800 UCBH Holdings, Inc.(c) 140,676
3,900 UICI(b,c) 67,509
2,600 Umpqua Holdings Corporation(c) 49,270
3,900 United Bankshares, Inc. 117,039
3,015 Waypoint Financial Corporation 78,028
3,550 Whitney Holding Corporation 145,550
1,800 Wintrust Financial Corporation(c) 85,482
1,600 Zenith National Insurance Corporation(c) 68,992
- -------------------------------------------------------------------------------------------------------------------------
Total Financials 5,182,484
=========================================================================================================================
Health Care (10.6%)
- -------------------------------------------------------------------------------------------------------------------------
4,075 Accredo Health, Inc.(b) 157,499
2,500 Advanced Medical Optics, Inc.(b) 78,850
4,400 Alpharma, Inc. 95,612
2,700 American Healthways, Inc.(c) 65,421
2,800 American Medical Systems Holdings, Inc.(b) 72,688
2,000 Amerigroup Corporation(b,c) 83,020
2,500 Amsurg Corporation 60,425
1,200 Analogic Corporation(c) 56,820
2,400 ArQule, Inc.(b,c) 15,936
1,700 ArthroCare Corporation(b,c) 39,967
2,000 BioLase Technology, Inc.(b,c) 25,760
1,300 Biosite Diagnostics, Inc.(b,c) 51,506
1,700 Centene Corporation(c) 56,950
3,000 Cerner Corporation(b,c) 128,460
1,200 CIMA Labs, Inc.(b,c) 37,968
2,400 CONMED Corporation(b) 59,232
2,700 Cooper Companies, Inc. 145,800
2,700 Cross Country Healthcare, Inc.(b,c) 44,523
2,150 CryoLife, Inc.(b,c) 12,298
1,100 Curative Health Services, Inc.(b,c) 12,760
2,000 Cyberonics, Inc.(b) 47,380
1,300 Datascope Corporation(c) 43,056
3,400 Dendrite International, Inc.(b,c) 58,276
2,400 Diagnostic Products Corporation(c) 102,384
2,512 Enzo Biochem, Inc.(b,c) 36,550
2,100 Haemonetics Corporation(b) 59,283
1,700 Hologic, Inc.(b,c) 34,085
5,500 Hooper Holmes, Inc.(c) 30,305
1,100 ICU Medical, Inc.(b,c) 36,707
2,900 IDEXX Laboratories, Inc.(b,c) 177,654
1,600 Immucor Incorporated(b,c) 39,440
2,950 Inamed Corporation 173,578
2,300 Integra Life Sciences Holdings Corporation(b,c) 73,600
2,600 Invacare Corporation(c) 103,558
4,700 Medicis Pharmaceutical Corporation(c) 201,724
3,700 Mentor Corporation(c) 117,290
2,100 Merit Medical Systems, Inc.(b,c) 32,991
2,900 MGI PHARMA, Inc.(b,c) 179,278
3,000 NDCHealth Corporation 68,610
1,900 Noven Pharmaceuticals, Inc.(b) 37,316
3,050 Odyssey Healthcare, Inc.(c) 51,270
4,200 Orthodontic Centers of America, Inc.(b,c) 30,114
1,600 Osteotech, Inc.(b,c) 10,624
3,300 Owens & Minor, Inc. 80,190
2,200 PAREXEL International Corporation(b,c) 42,988
2,000 Pediatrix Medical Group, Inc.(b) 143,000
4,700 Pharmaceutical Product Development, Inc.(b,c) 138,979
2,200 PolyMedica Corporation(c) 61,248
1,500 Possis Medical, Inc.(b,c) 38,145
3,700 Priority Healthcare Corporation(b) 74,185
4,100 Province Healthcare Company(b,c) 65,559
4,700 Regeneron Pharmaceuticals, Inc.(b,c) 58,891
1,400 RehabCare Group, Inc.(b) 28,630
3,800 Renal Care Group, Inc.(b) 188,024
2,800 ResMed, Inc.(b,c) 137,984
2,900 Respironics, Inc.(b) 151,989
800 Roto-Rooter, Inc.(c) 38,720
5,100 Savient Pharmaceuticals, Inc.(b) 19,125
2,300 Sierra Health Services, Inc.(b,c) 85,445
2,700 Sola International, Inc.(b,c) 55,404
1,700 Sunrise Senior Living, Inc.(b,c) 53,720
1,500 SurModics, Inc.(b,c) 33,570
3,200 Sybron Dental Specialties, Inc.(b) 93,600
3,400 TECHNE Corporation(b,c) 132,464
2,600 Theragenics Corporation(b,c) 13,624
2,300 United Surgical Partners International, Inc.(b) 83,306
7,100 US Oncology, Inc.(b) 105,790
2,500 Viasys Healthcare, Inc.(b) 48,500
1,200 Vital Signs, Inc. 38,556
1,800 Wilson Greatbatch Technologies, Inc.(b,c) 62,100
- -------------------------------------------------------------------------------------------------------------------------
Total Health Care 5,120,304
=========================================================================================================================
Industrials (14.8%)
- -------------------------------------------------------------------------------------------------------------------------
1,400 A.T. Cross Company(b) 8,232
2,700 AAR Corporation(b,c) 27,405
4,100 ABM Industries, Inc.(c) 75,686
3,500 Acuity Brands, Inc. 85,645
2,200 Administaff, Inc.(b,c) 38,500
2,800 Albany International Corporation 85,400
900 Angelica Corporation 20,700
2,400 Apogee Enterprises, Inc.(c) 26,736
1,800 Applied Industrial Technologies, Inc.(c) 47,304
2,600 Arbitron, Inc.(b) 96,850
2,100 Arkansas Best Corporation 54,579
2,400 Armor Holdings, Inc.(b) 79,296
3,200 Artesyn Technologies, Inc.(b,c) 29,472
1,800 Astec Industries, Inc.(b,c) 32,112
3,900 Atlantic Coast Airlines Holdings, Inc.(b,c) 25,545
2,800 Baldor Electric Company 63,224
2,000 Barnes Group, Inc.(c) 54,500
2,200 Belden, Inc. 38,478
2,900 Bowne & Company, Inc. 49,097
2,100 Brady Corporation 81,585
1,900 Briggs & Stratton Corporation 133,000
2,100 C&D Technologies, Inc.(c) 32,550
1,600 CDI Corporation(c) 51,616
3,000 Central Parking Corporation(c) 57,270
2,200 CLARCOR, Inc. 96,844
1,900 Coinstar, Inc.(b,c) 32,775
1,300 Consolidated Graphics, Inc.(b) 48,516
700 CPI Corporation(c) 10,738
2,200 Cubic Corporation(c) 51,920
1,600 Cuno, Inc.(b,c) 70,496
1,700 Curtiss-Wright Corporation(c) 80,070
2,200 DRS Technologies, Inc.(b) 62,150
1,800 EDO Corporation 40,860
4,000 EGL, Inc.(b,c) 74,160
1,700 ElkCorp 47,124
1,200 EMCOR Group, Inc.(b) 49,080
2,125 Engineered Support Systems, Inc. 103,339
1,700 Esterline Technologies Corporation(b,c) 42,075
1,800 Forward Air Corporation(b) 59,904
3,100 Frontier Airlines, Inc.(b,c) 28,148
1,700 G & K Services, Inc. 64,430
1,600 Gardner Denver, Inc.(b) 41,952
3,800 GenCorp, Inc.(c) 40,318
1,900 Gerber Scientific, Inc.(b,c) 11,400
2,520 Griffon Corporation(b,c) 55,314
4,201 Heartland Express, Inc. 103,135
1,500 Heidrick & Struggles International, Inc.(b) 37,245
2,500 Hughes Supply, Inc. 139,725
2,900 IDEX Corporation 137,025
1,400 Imagistics International, Inc.(b) 56,686
2,300 Insituform Technologies, Inc.(b,c) 37,352
1,000 Insurance Auto Auctions, Inc.(b,c) 15,730
1,423 Intermagnetics General Corporation(b,c) 34,892
1,400 InVision Technologies, Inc.(b,c) 69,552
1,900 Ionics, Inc.(b,c) 43,833
3,600 JLG Industries, Inc.(c) 53,244
2,400 John H. Harland Company(c) 73,944
2,000 Kaman Corporation 24,860
5,200 Kansas City Southern, Inc.(b,c) 72,020
2,600 Kaydon Corporation(c) 72,722
2,100 Kirby Corporation(b) 72,450
3,100 Knight Transportation, Inc.(b) 79,856
3,500 Kroll, Inc.(b,c) 103,740
3,500 Labor Ready, Inc.(b,c) 44,240
2,500 Landstar System, Inc.(c) 112,400
1,000 Lawson Products, Inc.(c) 34,850
5,000 Lennox International, Inc.(c) 83,550
1,200 Lindsay Manufacturing Company(c) 28,380
1,500 Lydall, Inc.(b) 14,640
2,600 MagneTek, Inc.(b,c) 17,940
2,200 Manitowoc Company, Inc.(c) 66,902
900 MemberWorks, Inc.(b,c) 26,559
1,800 Mercury Computer Systems, Inc.(b,c) 40,320
2,900 Mesa Air Group, Inc.(b,c) 20,503
4,200 Milacron, Inc.(c) 16,506
1,400 Mobile Mini, Inc.(b,c) 26,950
2,150 Moog, Inc. 70,950
2,900 Mueller Industries, Inc. 97,295
2,600 NCO Group, Inc.(b) 59,020
1,200 New England Business Service, Inc. 41,652
2,200 On Assignment, Inc.(b,c) 11,220
2,900 Oshkosh Truck Corporation 148,480
1,600 Pre-Paid Legal Services, Inc.(b,c) 40,000
5,200 PRG-Schultz International, Inc.(b,c) 24,440
2,200 Regal-Beloit Corporation 44,022
2,700 Reliance Steel & Aluminum Company 89,154
1,300 Robbins & Myers, Inc. 28,418
3,000 Roper Industries, Inc.(c) 145,650
1,600 School Specialty, Inc.(b,c) 57,008
5,100 Shaw Group, Inc.(b,c) 61,200
2,100 Simpson Manufacturing Company, Inc. 109,536
4,900 SkyWest, Inc. 89,180
2,400 Smith (A.O.) Corporation 71,760
1,500 SOURCECORP, Inc.(b) 38,535
5,100 Spherion Corporation(b) 50,235
2,500 Standard Register Company(c) 36,850
1,200 Standex International Corporation 32,280
2,400 Stewart & Stevenson Services, Inc.(c) 38,352
2,700 Teledyne Technologies, Inc.(b) 51,246
4,600 Tetra Tech, Inc.(b) 76,406
1,600 Thomas Industries, Inc. 54,000
7,600 Timken Company 167,656
2,000 Toro Company 116,300
3,300 Tredegar Corporation 43,857
1,400 Triumph Group, Inc.(b) 45,010
2,800 United Stationers, Inc.(b) 106,400
1,700 Universal Forest Products, Inc. 46,053
3,500 URS Corporation(b) 90,405
2,300 USF Corporation 76,475
2,100 Valmont Industries, Inc.(c) 43,050
3,500 Vicor Corporation(b) 48,650
1,400 Volt Information Sciences, Inc.(b) 36,134
2,800 Wabash National Corporation(b) 71,148
2,400 Waste Connections, Inc.(b) 96,648
2,200 Watsco, Inc. 64,130
2,800 Watson Wyatt & Company Holdings(b) 73,444
2,700 Watts Water Technologies, Inc. 66,123
1,200 Wolverine Tube, Inc.(b) 14,664
1,000 Woodward Governor Company 62,340
3,994 Yellow Roadway Corporation(b) 135,996
- -------------------------------------------------------------------------------------------------------------------------
Total Industrials 7,139,518
=========================================================================================================================
Information Technology (12.3%)
- -------------------------------------------------------------------------------------------------------------------------
2,200 Actel Corporation(b) 43,824
9,200 Adaptec, Inc.(b,c) 71,944
2,700 Advanced Energy Industries, Inc.(b,c) 35,748
6,300 Aeroflex, Inc.(b) 79,254
2,800 Agilysys, Inc.(c) 32,844
3,000 Alliance Semiconductor Corporation(b) 17,370
3,000 Anixter International, Inc.(c) 87,900
1,300 ANSYS, Inc.(b,c) 48,165
2,600 ATMI, Inc.(b,c) 57,408
1,900 Audiovox Corporation(b) 28,690
2,600 Avid Technology, Inc.(b) 124,722
8,400 Axcelis Technologies, Inc.(b) 88,284
1,550 BARRA, Inc.(c) 63,318
1,400 BEI Technologies, Inc. 29,512
1,000 Bel Fuse, Inc.(c) 30,880
2,300 Bell Microproducts, Inc.(b,c) 14,996
3,400 Benchmark Electronics, Inc. 91,902
1,500 Black Box Corporation(c) 76,425
3,700 Brooks Automation, Inc.(b) 61,568
1,100 Brooktrout, Inc.(b) 11,154
3,600 C-COR.net Corporation(b) 32,688
3,650 Cable Design Technologies Corporation(b,c) 31,134
2,400 CACI International, Inc.(b) 109,200
2,900 Captaris, Inc.(b) 16,037
2,100 Carreker Corporation(b,c) 15,288
1,200 Catapult Communications Corporation(b,c) 22,572
3,100 Checkpoint Systems, Inc.(b) 49,817
5,100 CIBER, Inc.(b,c) 44,625
3,700 Cognex Corporation 117,586
2,500 Coherent, Inc.(b) 61,125
1,900 Cohu, Inc. 33,250
1,500 Concord Communications, Inc.(b,c) 18,375
3,000 CTS Corporation 39,150
3,000 Cymer, Inc.(b) 95,940
1,600 Daktronics, Inc.(b,c) 33,968
1,800 Digi International, Inc.(b) 17,496
1,800 Dionex Corporation(b) 91,854
2,400 DSP Group, Inc.(b) 59,472
1,600 DuPont Photomasks, Inc.(b,c) 33,088
4,000 eFunds Corporation(b) 64,240
2,300 Electro Scientific Industries, Inc.(b) 47,012
1,700 EPIQ Systems, Inc.(b,c) 24,225
3,300 ESS Technology, Inc.(b,c) 35,376
3,400 Exar Corporation(b) 51,884
2,800 FactSet Research Systems, Inc.(c) 111,328
2,800 FEI Company(b,c) 55,944
3,100 FileNET Corporation(b,c) 85,126
2,800 FLIR Systems, Inc.(c) 131,348
1,800 Global Imaging Systems, Inc.(b,c) 62,316
3,140 Global Payments, Inc.(d) 150,657
5,900 Harmonic, Inc.(b) 38,999
2,200 Helix Technology Corporation 38,720
2,200 Hutchinson Technology, Inc.(b,c) 54,098
3,200 Hyperion Solutions Corporation(b,c) 122,816
2,100 Inter-Tel, Inc.(c) 50,274
1,444 Intrado, Inc.(b,c) 24,822
1,800 Itron, Inc.(b,c) 38,484
1,900 J2 Global Communication, Inc.(c) 44,004
2,400 JDA Software Group, Inc.(b,c) 31,512
1,400 Keithley Instruments, Inc. 29,190
6,000 Kopin Corporation(b,c) 29,880
2,550 Kronos, Inc. 93,024
4,300 Kulicke and Soffa Industries, Inc.(b,c) 42,699
1,800 Littelfuse, Inc.(b) 69,120
2,500 Manhattan Associates, Inc.(b) 67,175
2,700 Mantech International Corporation(b,c) 67,770
1,700 MapInfo Corporation(b) 18,785
1,800 MAXIMUS, Inc.(b) 63,000
3,100 Methode Electronics Inc. 35,154
1,500 MICROS Systems, Inc.(b) 65,805
5,000 Microsemi Corporation(c) 54,350
5,700 Midway Games, Inc.(b,c) 47,196
2,100 MRO Software, Inc.(b,c) 27,993
3,200 Netegrity, Inc.(b,c) 26,880
2,100 Network Equipment Technologies, Inc.(b,c) 17,955
2,900 NYFIX, Inc.(b,c) 14,500
1,700 Park Electrochemical Corporation 40,069
3,500 Paxar Corporation(b,c) 57,680
1,800 PCTEL, Inc.(b) 19,944
2,100 Pegasus Solutions, Inc.(b,c) 22,470
2,200 Pericom Semiconductor Corporation(b) 23,210
2,200 Phoenix Technologies, Ltd.(b,c) 12,496
1,400 Photon Dynamics, Inc.(b,c) 43,400
2,700 Photronics, Inc.(b) 40,203
5,700 Pinnacle Systems, Inc.(b,c) 44,859
1,400 Planar Systems, Inc.(b,c) 17,066
2,500 Power Integrations, Inc.(b,c) 61,575
3,000 Progress Software Corporation(b) 61,500
1,400 QRS Corporation(b,c) 7,322
2,200 Radiant Systems, Inc.(b,c) 9,790
1,500 RadiSys Corporation(b,c) 28,005
1,300 Rogers Corporation(b) 77,610
2,900 Roxio, Inc.(b,c) 11,310
1,400 Rudolph Technologies, Inc.(b) 22,498
1,400 SBS Technologies, Inc.(b) 20,860
1,000 ScanSource, Inc.(b) 55,230
1,400 SCM Microsystems, Inc.(b,c) 8,792
3,800 SERENA Software, Inc.(b,c) 67,526
12,700 Skyworks Solutions, Inc.(b) 108,712
1,600 SPSS, Inc.(b,c) 22,752
1,500 Standard Microsystems Corporation(b) 35,760
1,200 StarTek, Inc.(c) 38,940
1,100 Supertex, Inc.(b,c) 16,731
3,750 Symmetricom, Inc.(b,c) 30,038
3,700 Take-Two Interactive Software, Inc.(b,c) 106,893
1,300 TALX Corporation(c) 30,199
3,400 Technitrol, Inc.(b) 72,318
3,200 THQ, Inc.(b,c) 59,328
2,000 Three-Five Systems, Inc.(b,c) 10,180
1,200 Tollgrade Communications, Inc.(b,c) 14,616
4,150 Trimble Navigation, Ltd. 103,958
1,900 Ultratech, Inc.(b,c) 30,609
3,000 Varian Semiconductor Equipment Associates, Inc.(b) 97,680
2,400 Veeco Instruments, Inc.(b,c) 54,600
3,200 Verity, Inc.(b,c) 39,680
2,200 ViaSat, Inc.(b) 48,356
3,600 WebEx Communications, Inc.(b,c) 80,784
1,900 Websense, Inc.(b) 56,050
1,800 X-Rite, Inc.(c) 24,264
2,600 Zix Corporation(b,c) 38,948
- -------------------------------------------------------------------------------------------------------------------------
Total Information Technology 5,927,045
=========================================================================================================================
Materials (4.1%)
- -------------------------------------------------------------------------------------------------------------------------
1,400 A.M. Castle & Company(b,c) 13,090
3,100 AptarGroup, Inc. 121,830
2,000 Arch Chemicals, Inc. 58,420
1,600 Brush Engineered Materials, Inc.(b) 25,888
3,300 Buckeye Technologies, Inc.(b,c) 34,650
2,200 Cambrex Corporation 54,384
2,400 Caraustar Industries, Inc.(b) 30,360
1,900 Carpenter Technology 51,889
2,500 Century Aluminum Company(b) 49,500
1,800 Chesapeake Corporation 40,878
800 Cleveland-Cliffs, Inc.(b,c) 37,904
2,400 Commercial Metals Company(c) 62,880
1,500 Commonwealth Industries, Inc. 11,850
1,200 Deltic Timber Corporation 40,812
3,624 Florida Rock Industries, Inc.(c) 144,199
2,700 Georgia Gulf Corporation 86,022
2,500 H.B. Fuller Company 68,500
2,800 Headwaters, Inc.(b,c) 64,372
1,400 IMCO Recycling, Inc.(b,c) 12,404
2,500 MacDermid, Inc. 80,950
6,400 Massey Energy Company(c) 149,888
1,300 Material Sciences Corporation(b,c) 12,610
2,580 Myers Industries, Inc. 36,404
2,400 OM Group, Inc.(b) 61,080
3,500 OMNOVA Solutions, Inc.(b,c) 16,625
900 Penford Corporation 14,697
7,800 PolyOne Corporation(b,c) 53,352
1,500 Pope & Talbot, Inc. 24,900
900 Quaker Chemical Corporation 22,734
1,300 Quanex Corporation 53,040
3,100 Rock-Tenn Company 46,190
1,900 RTI International Metals, Inc.(b) 27,835
2,200 Ryerson Tull, Inc. 25,828
2,600 Schulman (A.), Inc.(c) 52,000
1,400 Schweitzer-Mauduit International, Inc. 43,386
4,000 Steel Dynamics, Inc.(b,c) 96,280
1,100 Steel Technologies, Inc.(c) 21,219
1,700 Texas Industries, Inc. 57,307
4,500 Wausau-Mosinee Paper Corporation(c) 63,135
2,900 Wellman, Inc. 23,461
- -------------------------------------------------------------------------------------------------------------------------
Total Materials 1,992,753
=========================================================================================================================
Utilities (3.0%)
- -------------------------------------------------------------------------------------------------------------------------
1,300 American States Water Company(c) 30,095
4,500 Atmos Energy Corporation(c) 110,880
4,100 Avista Corporation 69,290
1,100 Cascade Natural Gas Corporation(c) 22,583
1,200 Central Vermont Public Service Corporation(c) 24,180
1,500 CH Energy Group, Inc.(c) 69,450
4,100 Cleco Corporation(c) 73,595
4,200 El Paso Electric Company(b,c) 59,430
3,100 Energen Corporation 128,185
600 Green Mountain Power Corporation 15,342
1,700 Laclede Group, Inc.(c) 46,903
2,500 New Jersey Resources Corporation 95,275
2,400 Northwest Natural Gas Company 70,560
1,500 NUI Corporation(c) 24,990
3,400 Piedmont Natural Gas Company, Inc. 137,700
6,203 Southern Union Company(b,c) 121,951
2,900 Southwest Gas Corporation 66,120
4,300 UGI Corporation 135,450
1,400 UIL Holdings Corporation(c) 63,238
2,800 UniSource Energy Corporation(c) 68,404
- -------------------------------------------------------------------------------------------------------------------------
Total Utilities 1,433,621
- -------------------------------------------------------------------------------------------------------------------------
Total Common Stock (cost $31,886,024) 37,299,371
=========================================================================================================================
Shares or
Principal Interest Maturity
Amount Collateral Held for Securities Loaned (20.2%) Rate (e) Date Value
- -------------------------------------------------------------------------------------------------------------------------
$22,829 BNP Paribas Letter of Credit 0.150% 10/21/2004 $22,828
9,703,392 State Street Navigator Securities Lending Prime
Portfolio 1.070 N/A 9,703,392
244 U.S. Treasury Bonds 9.375 2/15/2006 279
83 U.S. Treasury Bonds 13.250 5/15/2014 124
22 U.S. Treasury Bonds 7.250 5/15/2016 28
3,359 U.S. Treasury Bonds 8.750 5/15/2017 4,732
1,467 U.S. Treasury Bonds 8.875 8/15/2017 2,056
258 U.S. Treasury Bonds 9.000 11/15/2018 373
6,829 U.S. Treasury Bonds 8.125 8/15/2019 9,124
216 U.S. Treasury Bonds 8.750 8/15/2020 306
9,086 U.S. Treasury Bonds 8.125 5/15/2021 12,426
356 U.S. Treasury Bonds 8.000 11/15/2021 483
115 U.S. Treasury Bonds 7.625 11/15/2022 151
152 U.S. Treasury Bonds 7.125 2/15/2023 187
635 U.S. Treasury Bonds 5.500 8/15/2028 653
244 U.S. Treasury Bonds 6.250 5/15/2030 281
- -------------------------------------------------------------------------------------------------------------------------
Total Collateral Held for Securities Loaned (cost
$9,757,423) 9,757,423
=========================================================================================================================
Interest Maturity
Shares Short-Term Investments (2.7%) Rate (e) Date Value
- -------------------------------------------------------------------------------------------------------------------------
1,310,309 The AAL Money Market Fund(d) 0.530% N/A $1,310,309
- -------------------------------------------------------------------------------------------------------------------------
Total Short-Term Investments (at amortized cost) 1,310,309
- -------------------------------------------------------------------------------------------------------------------------
Total Investments (cost $42,953,756) $48,367,103
=========================================================================================================================
(a) The categories of investments are shown as apercentage of total
investments.
(b) Non-income producing security.
(c) All or a portion of the security is on loan as discussed in item 2(L)
of the Notes to Financial Statements.
(d) At April 30, 2004, $70,000 in cash was pledged as the initial margin
deposit for open financial futures contracts. In addition, 3,140 shares of
Global Payments, Inc. common stock valued at $150,657 and $1,310,309 of The
AAL Money Market Fund were earmarked as collateral to cover open financial
futures contracts as follows:
Number of Expiration Notional Principal Unrealized
Type Contracts Date Position Value Amount Loss
- -------------------------------------------------------------------------------------------------------------------------
Russell Mini Futures 26 June 2004 Long $1,455,610 $1,526,975 $71,365
(e) The interest rate shown reflects the coupon rate or yield.
The accompanying notes to the financial statements
are an integral part of this schedule.
The AAL Small Cap Value Fund
Schedule of Investments as of April 30, 2004 (a)
Shares Common Stock (85.0%) Value
- -------------------------------------------------------------------------------------------------------------------------
Consumer Discretionary (16.8%)
- -------------------------------------------------------------------------------------------------------------------------
12,300 ADVO, Inc. $386,220
13,500 Aeropostale, Inc. 296,865
10,100 Applebee's International, Inc. 391,678
10,600 Arctic Cat, Inc. 251,750
12,800 Boyd Gaming Corporation 300,800
18,800 Cooper Tire & Rubber Company 402,132
10,300 Cost Plus, Inc.(b) 372,860
9,213 Deckers Outdoor Corporation(b,c) 246,816
8,600 Ethan Allen Interiors, Inc. 357,502
20,600 Gymboree Corporation(b) 363,590
9,500 Hasbro, Inc. 179,455
16,700 Insight Enterprises, Inc.(b) 279,558
46,200 Interface, Inc.(b) 394,086
12,700 International Speedway Corporation 535,051
4,200 KB Home 289,506
5,700 Lear Corporation 345,534
9,000 Lee Enterprises, Inc. 430,020
5,580 M.D.C. Holdings, Inc.(c) 344,788
21,200 Marine Products Corporation 374,816
13,400 MarineMax, Inc.(b) 382,034
11,200 Maytag Corporation 312,480
6,800 Michaels Stores, Inc. 340,204
25,200 Quiksilver, Inc. 545,076
26,200 Radio One, Inc.(b) 499,896
14,300 Red Robin Gourmet Burgers, Inc.(b) 411,125
8,800 Regis Corporation 382,096
9,800 Ross Stores, Inc. 298,900
14,100 Ruby Tuesday, Inc. 421,872
12,750 SCP Pool Corporation 512,678
21,000 Stein Mart, Inc.(b) 267,120
10,500 Thor Industries, Inc. 292,530
8,100 Toll Brothers, Inc.(b) 320,517
19,600 Toys 'R' Us, Inc.(b) 302,820
12,200 West Marine, Inc.(b,c) 354,776
9,100 Winnebago Industries, Inc.(c) 262,353
- -------------------------------------------------------------------------------------------------------------------------
Total Consumer Discretionary 12,449,504
=========================================================================================================================
Consumer Staples (3.1%)
- -------------------------------------------------------------------------------------------------------------------------
43,900 Casey's General Stores, Inc. 726,984
10,700 Church & Dwight Company, Inc. 480,965
7,800 Dean Foods Company 261,924
7,900 McCormick & Company, Inc. 269,864
8,300 NBTY, Inc.(b) 308,428
9,000 WD-40 Company(c) 273,150
- -------------------------------------------------------------------------------------------------------------------------
Total Consumer Staples 2,321,315
=========================================================================================================================
Energy (6.4%)
- -------------------------------------------------------------------------------------------------------------------------
15,100 Cimarex Energy Company(b) 416,609
29,500 Energy Partners, Ltd.(b,c) 413,000
9,800 Evergreen Resources, Inc. 393,274
27,100 Key Energy Services, Inc.(b) 288,886
14,500 Maverick Tube Corporation(b,c) 328,135
8,200 Newfield Exploration Company(b) 431,976
11,300 Patina Oil & Gas Corporation 314,140
9,300 Patterson-UTI Energy, Inc.(b) 336,567
7,400 Precision Drilling Corporation(b) 354,460
19,800 Pride International, Inc.(b) 334,026
9,700 St. Mary Land & Exploration Company 350,655
5,100 Teekay Shipping Corporation(c) 310,080
14,000 Ultra Petroleum Corporation(b) 459,760
- -------------------------------------------------------------------------------------------------------------------------
Total Energy 4,731,568
=========================================================================================================================
Financials (15.8%)
- -------------------------------------------------------------------------------------------------------------------------
12,900 Affiliated Managers Group, Inc.(c) 628,230
5,900 Alexandria Real Estate Equities, Inc. 335,238
10,100 AMB Property Corporation 306,030
19,800 Argonaut Group, Inc.(b) 366,300
16,900 Bank of the Ozarks, Inc.(c) 402,896
10,805 BOK Financial Corporation(b) 422,043
38,500 Cardinal Financial Corporation(b) 344,575
8,100 Corus Bankshares, Inc. 305,775
9,700 Developers Diversified Realty Corporation 317,675
6,600 Downey Financial Corporation 318,450
10,600 Eastgroup Properties, Inc. 306,870
9,890 Fidelity National Financial, Inc. 361,974
11,300 First Midwest Bancorp, Inc. 381,375
20,200 HCC Insurance Holdings, Inc.(c) 646,804
29,600 HRPT Properties Trust 282,680
6,300 IBERIABANK Corporation 359,100
8,400 IPC Holdings, Ltd. 309,120
8,500 MAF Bancorp, Inc. 347,225
10,800 Main Street Banks, Inc.(c) 291,600
8,700 MB Financial, Inc. 306,675
11,950 Mercantile Bank Corporation 429,602
7,300 Mills Corporation 296,380
13,100 Nara Bancorp, Inc.(c) 377,280
4,450 Penns Woods Bancorp, Inc. 201,896
3,800 Piper Jaffray Companies(b) 183,996
10,500 Platinum Underwriters Holdings, Ltd.(c) 335,790
8,200 Protective Life Corporation 294,872
16,300 Providian Financial Corporation(b) 197,719
7,950 Raymond James Financial, Inc. 199,704
8,700 Reinsurance Group of America 337,734
7,600 SL Green Realty Corporation 310,080
22,600 Sterling Bancshares, Inc. 287,246
9,200 United Bankshares, Inc. 276,092
30,600 Winston Hotels, Inc. 281,826
8,000 Wintrust Financial Corporation(c) 379,920
- -------------------------------------------------------------------------------------------------------------------------
Total Financials 11,730,772
=========================================================================================================================
Health Care (7.5%)
- -------------------------------------------------------------------------------------------------------------------------
9,900 Advanced Medical Optics, Inc.(b,c) 312,246
14,200 Apria Healthcare Group, Inc.(b) 409,528
9,200 Community Health Systems, Inc.(b) 237,268
11,900 CONMED Corporation(b) 293,692
11,100 Cooper Companies, Inc. 599,400
12,000 Cytyc Corporation(b) 256,800
50,600 Encore Medical Corporation(b,c) 397,210
5,100 Henry Schein, Inc.(b) 359,397
10,000 LifePoint Hospitals, Inc.(b,c) 357,600
7,500 Medicis Pharmaceutical Corporation(c) 321,900
7,700 Omnicare, Inc. 319,396
19,700 Perrigo Company 424,929
9,500 Renal Care Group, Inc.(b) 470,060
41,900 Savient Pharmaceuticals, Inc.(b) 157,125
17,600 United Surgical Partners International, Inc.(b) 637,472
- -------------------------------------------------------------------------------------------------------------------------
Total Health Care 5,554,023
=========================================================================================================================
Industrials (17.8%)
- -------------------------------------------------------------------------------------------------------------------------
13,200 American Power Conversion Corporation 246,312
7,600 Arkansas Best Corporation 197,524
35,000 Artesyn Technologies, Inc.(b,c) 322,350
5,800 Briggs & Stratton Corporation(c) 406,000
16,000 Casella Waste Systems, Inc.(b) 232,000
21,300 Circor International, Inc. 416,628
15,700 Consolidated Graphics, Inc.(b) 585,924
12,100 Donaldson Company, Inc. 331,903
13,800 EDO Corporation(c) 313,260
8,100 Fastenal Company(c) 444,447
24,600 Federal Signal Corporation(c) 447,720
7,400 Genlyte Group, Inc.(b) 424,168
31,800 Griffon Corporation(b,c) 698,010
64,300 Hall, Kinion & Associates, Inc.(b) 259,129
11,300 Heartland Express, Inc. 277,415
12,500 HON INDUSTRIES, Inc. 462,625
15,100 IDEX Corporation 713,475
10,700 Jacobs Engineering Group, Inc.(b) 446,297
40,600 Jacuzzi Brands, Inc.(b) 354,844
37,100 KForce, Inc.(b,c) 348,740
6,400 Landstar System, Inc. 287,744
13,000 Lindsay Manufacturing Company(c) 307,450
13,700 Manitowoc Company, Inc. 416,617
19,100 MSC Industrial Direct Company, Inc.(c) 547,406
9,400 Mueller Industries, Inc. 315,370
5,800 Oshkosh Truck Corporation 296,960
8,200 Precision Castparts Corporation 369,082
7,100 Ritchie Bros. Auctioneers Incorporated 417,125
5,900 Roper Industries, Inc. 286,445
18,000 SkyWest, Inc. 327,600
10,800 Thomas Industries, Inc. 364,500
8,900 Waste Connections, Inc.(b,c) 358,403
20,000 Watson Wyatt & Company Holdings(b,c) 524,600
21,400 Werner Enterprises, Inc. 427,786
- -------------------------------------------------------------------------------------------------------------------------
Total Industrials 13,175,859
=========================================================================================================================
Information Technology (8.1%)
- -------------------------------------------------------------------------------------------------------------------------
14,500 Acxiom Corporation 335,530
5,900 Advanced Fibre Communications, Inc.(b) 98,530
11,300 Autodesk, Inc. 378,550
7,500 Avocent Corporation(b) 240,675
7,300 Brooks Automation, Inc.(b) 121,472
36,500 CIBER, Inc.(b,c) 319,375
10,600 Cypress Semiconductor Corporation(b,c) 148,082
8,950 Fair Isaac Corporation(c) 301,794
29,000 Ingram Micro, Inc.(b) 346,550
10,600 Inter-Tel, Inc. 253,764
5,900 International Rectifier Corporation(b) 233,876
14,100 Ixia(b) 125,913
10,600 Littelfuse, Inc.(b) 407,040
55,300 Management Network Group, Inc.(b) 165,347
19,800 Methode Electronics Inc. 224,532
73,300 Parametric Technology Corporation(b) 335,714
5,600 Photronics, Inc.(b,c) 83,384
7,700 Plantronics, Inc.(b) 292,215
16,800 Plexus Corporation(b,c) 241,584
13,000 Tech Data Corporation(b) 442,000
39,200 Three-Five Systems, Inc.(b,c) 199,528
11,400 Tollgrade Communications, Inc.(b,c) 138,852
13,400 VeriSign, Inc.(b,c) 216,142
22,500 Vishay Intertechnology, Inc.(b,c) 391,500
- -------------------------------------------------------------------------------------------------------------------------
Total Information Technology 6,041,949
=========================================================================================================================
Materials (6.8%)
- -------------------------------------------------------------------------------------------------------------------------
7,750 Florida Rock Industries, Inc. 308,372
17,100 Lafarge North America, Inc.(c) 756,676
18,200 MacDermid, Inc. 589,316
17,800 NOVA Chemicals Corporation(c) 453,900
14,600 Packaging Corporation of America 320,908
9,500 Peabody Energy Corporation 445,455
6,400 Quanex Corporation 261,120
17,900 RPM International, Inc.(c) 269,932
12,700 Schulman (A.), Inc. 254,000
9,200 Schweitzer-Mauduit International, Inc. 285,108
11,300 Silgan Holdings, Inc.(b) 475,391
11,700 Steel Dynamics, Inc.(b) 281,619
25,200 Wausau-Mosinee Paper Corporation 353,556
- -------------------------------------------------------------------------------------------------------------------------
Total Materials 5,055,353
=========================================================================================================================
Utilities (2.7%)
- -------------------------------------------------------------------------------------------------------------------------
13,500 Atmos Energy Corporation(c) 332,640
7,000 CH Energy Group, Inc.(c) 324,100
8,500 Energen Corporation 351,475
13,200 Northwest Natural Gas Company(c) 388,080
8,000 Piedmont Natural Gas Company, Inc.(c) 324,000
10,500 UniSource Energy Corporation(c) 256,515
- -------------------------------------------------------------------------------------------------------------------------
Total Utilities 1,976,810
- -------------------------------------------------------------------------------------------------------------------------
Total Common Stock (cost $50,035,983) 63,037,153
=========================================================================================================================
Interest Maturity
Shares Collateral Held for Securities Loaned (10.3%) Rate (d) Date Value
- -------------------------------------------------------------------------------------------------------------------------
7,676,622 State Street Navigator Securities Lending Prime
Portfolio 1.070% N/A $7,676,622
- -------------------------------------------------------------------------------------------------------------------------
Total Collateral Held for Securities Loaned (cost
$7,676,622) $7,676,622
=========================================================================================================================
Shares or
Principal Interest Maturity
Amount Short-Term Investments (4.7%) Rate (d) Date Value
- -------------------------------------------------------------------------------------------------------------------------
$490,000 Falcon Asset Securitization Corporation 1.031% 5/18/2004 $489,762
3,021,618 The AAL Money Market Fund 0.530 N/A 3,021,618
- -------------------------------------------------------------------------------------------------------------------------
Total Short-Term Investments (at amortized cost) 3,511,380
- -------------------------------------------------------------------------------------------------------------------------
Total Investments (cost $61,223,985) $74,225,155
=========================================================================================================================
(a) The categories of investments are shown as apercentage of total
investments.
(b) Non-income producing security.
(c) All or a portion of the security is on loan as discussed in item 2(L)
of the Notes to Financial Statements.
(d) The interest rate shown reflects the yield, or for securities purchased
at a discount, the discount rate at the date of purchase.
The accompanying notes to the financial statements
are an integral part of this schedule.
The AAL Mid Cap Stock Fund
Schedule of Investments as of April 30, 2004 (a)
Shares Common Stock (86.5%) Value
- -------------------------------------------------------------------------------------------------------------------------
Communications Services (0.6%)
- -------------------------------------------------------------------------------------------------------------------------
110,200 NII Holdings, Inc.(b) $3,857,000
85,600 Western Wireless Corporation(c) 1,782,192
- -------------------------------------------------------------------------------------------------------------------------
Total Communications Services 5,639,192
=========================================================================================================================
Consumer Discretionary (16.1%)
- -------------------------------------------------------------------------------------------------------------------------
159,100 ADVO, Inc.(b) 4,995,740
142,050 Aeropostale, Inc. 3,123,680
85,300 AnnTaylor Stores Corporation(c) 3,457,209
195,000 Applebee's International, Inc. 7,562,100
83,800 Autoliv, Inc. 3,564,014
139,600 Belo Corporation 3,973,016
140,700 Boyd Gaming Corporation 3,306,450
103,700 Brunswick Corporation 4,263,107
209,000 D.R. Horton, Inc. 6,019,200
200,900 Dollar General Corporation 3,768,884
256,300 Hilton Hotels Corporation 4,482,687
65,000 International Game Technology 2,453,100
73,500 International Speedway Corporation 3,096,555
64,000 Jones Apparel Group, Inc. 2,342,400
41,000 Lear Corporation 2,485,420
133,100 Lennar Corporation(b) 6,235,735
60,100 Mandalay Resort Group(b) 3,452,745
229,500 Mattel, Inc. 3,892,320
154,100 Maytag Corporation 4,299,390
115,400 Michaels Stores, Inc. 5,773,462
44,700 Mohawk Industries, Inc.(c) 3,448,158
62,200 Outback Steakhouse, Inc. 2,732,446
52,600 P.F. Chang's China Bistro, Inc.(b,c) 2,570,036
128,500 PETsMART, Inc. 3,559,450
130,100 Polo Ralph Lauren Corporation 4,501,460
87,300 Pulte Homes, Inc. 4,292,541
117,900 Quiksilver, Inc.(b) 2,550,177
372,100 Radio One, Inc.(b,c) 7,055,016
103,100 Reebok International, Ltd. 3,750,778
71,500 Regis Corporation 3,104,530
183,000 Ross Stores, Inc. 5,581,500
60,300 Scripps (E.W.) Company 6,364,665
141,700 Staples, Inc. 3,650,192
118,800 Station Casinos, Inc. 5,355,504
123,100 Warnaco Group, Inc.(c) 2,354,903
5,200 Washington Post Company 4,784,000
76,600 XM Satellite Radio Holdings, Inc.(c) 1,835,336
- -------------------------------------------------------------------------------------------------------------------------
Total Consumer Discretionary 150,037,906
=========================================================================================================================
Consumer Staples (3.7%)
- -------------------------------------------------------------------------------------------------------------------------
262,350 Dean Foods Company 8,809,713
91,100 Energizer Holdings, Inc.(c) 3,944,630
79,600 Flowers Foods, Inc. 1,949,404
112,400 Hershey Foods Corporation 9,991,236
544,100 Tyson Foods, Inc. 10,196,434
- -------------------------------------------------------------------------------------------------------------------------
Total Consumer Staples 34,891,417
=========================================================================================================================
Energy (7.2%)
- -------------------------------------------------------------------------------------------------------------------------
54,000 BJ Services Company(c) 2,403,000
188,600 ENSCO International, Inc. 5,161,982
185,925 Nabors Industries, Ltd.(c) 8,247,633
132,100 Newfield Exploration Company(c) 6,959,028
111,100 Noble Corporation(c) 4,128,476
177,100 Patterson-UTI Energy, Inc.(c) 6,409,249
139,400 Pioneer Natural Resources Company 4,559,774
143,400 Pogo Producing Company 7,072,488
92,300 Precision Drilling Corporation(c) 4,421,170
37,400 Smith International, Inc.(c) 2,047,650
64,900 Teekay Shipping Corporation(b) 3,945,920
214,300 Ultra Petroleum Corporation(b,c) 7,037,612
108,700 Weatherford International, Ltd.(c) 4,726,276
- -------------------------------------------------------------------------------------------------------------------------
Total Energy 67,120,258
=========================================================================================================================
Financials (15.1%)
- -------------------------------------------------------------------------------------------------------------------------
172,700 A.G. Edwards, Inc.(b) 6,319,093
63,150 Affiliated Managers Group, Inc.(b) 3,075,405
216,300 Ameritrade Holding Corporation(c) 2,647,512
87,500 CIT Group, Inc. 3,007,375
115,200 City National Corporation 7,102,080
165,649 Countrywide Financial Corporation 9,822,986
178,000 Doral Financial Corporation(b) 5,836,620
65,900 Everest Re Group, Ltd. 5,613,362
167,082 Fidelity National Financial, Inc. 6,115,201
45,900 First Horizon National Corporation 2,017,764
197,700 General Growth Properties, Inc. 5,359,647
65,900 Hartford Financial Services Group, Inc. 4,025,172
274,400 HCC Insurance Holdings, Inc.(b) 8,786,288
79,500 Investors Financial Services Corporation(b) 3,090,165
223,300 Knight Trading Group, Inc.(c) 2,594,746
37,200 Legg Mason, Inc. 3,424,632
44,000 M&T Bank Corporation 3,740,000
171,400 Nationwide Financial Services, Inc. 5,896,160
185,900 North Fork Bancorporation, Inc.(b) 6,900,608
228,600 Ohio Casualty Corporation(b,c) 4,485,132
79,400 PartnerRe, Ltd. 4,549,620
306,400 Phoenix Companies, Inc.(b) 3,882,088
78,500 Piper Jaffray Companies(c) 3,800,970
50,100 PMI Group, Inc. 2,155,803
148,800 ProLogis Trust 4,377,696
349,400 Providian Financial Corporation(c) 4,238,222
71,600 SEI Investments Company 2,113,632
99,400 Southwest Bancorporation of Texas, Inc.(b) 4,042,598
69,200 Wintrust Financial Corporation(b) 3,286,308
115,100 XL Capital, Ltd. 8,787,885
- -------------------------------------------------------------------------------------------------------------------------
Total Financials 141,094,770
=========================================================================================================================
Health Care (12.4%)
- -------------------------------------------------------------------------------------------------------------------------
144,700 Advanced Medical Optics, Inc.(c) 4,563,838
60,800 Anthem, Inc.(c) 5,385,664
101,500 Atrix Labs, Inc.(c) 3,061,240
39,600 Bausch & Lomb, Inc. 2,488,068
69,800 C.R. Bard, Inc. 7,417,646
130,600 Caremark Rx, Inc.(c) 4,420,810
45,000 Cephalon, Inc.(b,c) 2,560,950
64,200 Charles River Laboratories International, Inc.(b,c) 2,953,200
121,300 Dade Behring Holdings, Inc.(c) 5,579,800
96,300 DaVita, Inc.(c) 4,920,930
81,300 Dentsply International, Inc. 3,939,798
78,300 Henry Schein, Inc.(b,c) 5,517,801
51,000 Invitrogen Corporation(c) 3,683,730
229,275 IVAX Corporation(c) 4,883,558
54,200 Kinetic Concepts, Inc.(c) 2,623,280
45,400 Martek Biosciences Corporation(b,c) 2,882,446
93,300 Mylan Laboratories, Inc. 2,137,503
119,300 Omnicare, Inc. 4,948,564
123,000 PacifiCare Health Systems, Inc. 4,398,480
126,400 Protein Design Labs, Inc.(b,c) 3,094,272
53,300 Quest Diagnostics, Inc. 4,495,855
75,600 ResMed, Inc.(b,c) 3,725,568
48,300 Sepracor, Inc.(b,c) 2,309,223
59,300 St. Jude Medical, Inc.(c) 4,522,218
121,500 Telik, Inc.(b,c) 2,851,605
61,300 United Surgical Partners International, Inc.(b,c) 2,220,286
122,700 Valeant Pharmaceuticals(b) 2,834,370
82,000 Varian Medical Systems, Inc.(c) 7,038,880
209,000 Vertex Pharmaceuticals, Inc.(b,c) 1,805,760
66,500 Wright Medical Group, Inc.(c) 2,283,610
- -------------------------------------------------------------------------------------------------------------------------
Total Health Care 115,548,953
=========================================================================================================================
Industrials (10.4%)
- -------------------------------------------------------------------------------------------------------------------------
165,500 Acuity Brands, Inc. 4,049,785
395,400 Allied Waste Industries, Inc.(c) 4,978,086
178,850 American Power Conversion Corporation 3,337,341
128,700 Aramark Corporation 3,680,820
77,700 Burlington Northern Santa Fe Corporation 2,540,790
83,100 Canadian National Railway Company 3,138,687
251,900 Donaldson Company, Inc. 6,909,617
53,300 Fastenal Company(b) 2,924,571
85,900 Goodrich Corporation 2,473,061
152,800 IDEX Corporation(b) 7,219,800
98,400 Jacobs Engineering Group, Inc.(c) 4,104,264
214,300 Manitowoc Company, Inc.(b) 6,516,863
111,800 Manpower, Inc. 5,243,420
91,400 Monster Worldwide, Inc.(c) 2,340,754
52,900 Navistar International Corporation(c) 2,388,435
92,100 Precision Castparts Corporation 4,145,421
64,000 Reliance Steel & Aluminum Company 2,113,280
136,100 Rockwell Collins, Inc. 4,389,225
88,100 Roper Industries, Inc.(b) 4,277,255
94,800 UTI Worldwide, Inc.(b) 4,342,788
261,400 Waste Management, Inc. 7,423,760
212,500 Werner Enterprises, Inc. 4,247,875
136,800 Yellow Roadway Corporation(b,c) 4,658,040
- -------------------------------------------------------------------------------------------------------------------------
Total Industrials 97,443,938
=========================================================================================================================
Information Technology (13.3%)
- -------------------------------------------------------------------------------------------------------------------------
209,800 Acxiom Corporation(b) 4,854,772
43,300 Affiliated Computer Services, Inc.(c) 2,100,050
98,600 Analog Devices, Inc. 4,200,360
156,900 Apple Computer, Inc.(c) 4,037,037
72,000 Ask Jeeves, Inc.(b,c) 2,553,840
122,200 Autodesk, Inc. 4,093,700
72,000 Avocent Corporation(c) 2,310,480
260,100 BEA Systems, Inc.(c) 2,967,741
174,500 BMC Software, Inc.(c) 3,018,850
91,200 CDW Corporation 5,699,088
197,500 Check Point Software Technologies, Ltd.(c) 4,627,425
75,000 CheckFree Corporation(b,c) 2,253,000
95,600 Cognos, Inc.(c) 3,014,268
91,700 Computer Associates International, Inc. 2,458,477
167,400 Comverse Technology, Inc.(c) 2,738,664
45,400 Diebold, Inc. 2,092,486
101,000 DST Systems, Inc.(b,c) 4,459,150
54,200 Electronic Arts, Inc. 2,743,604
95,250 Fair Isaac Corporation(b) 3,211,830
55,500 Fiserv, Inc.(c) 2,029,080
58,400 Harris Corporation 2,630,920
109,500 Hewitt Associates, Inc.(c) 3,384,645
88,600 Juniper Networks, Inc.(b,c) 1,938,568
52,000 Lexmark International, Inc.(c) 4,703,920
68,700 Microchip Technology, Inc. 1,924,974
115,100 Network Associates, Inc.(c) 1,804,768
83,800 NVIDIA Corporation(c) 1,721,252
504,500 On Semiconductor Corporation(b,c) 2,436,735
732,200 Parametric Technology Corporation(c) 3,353,476
229,300 PerkinElmer, Inc. 4,414,025
219,000 Pinnacle Systems, Inc.(c) 1,723,530
117,600 Red Hat, Inc.(b,c) 2,670,696
164,600 Storage Technology Corporation(c) 4,324,042
307,000 Symbol Technologies, Inc. 3,684,000
172,000 VeriSign, Inc.(c) 2,774,360
193,700 Vishay Intertechnology, Inc.(c) 3,370,380
427,500 Vitesse Semiconductor Corporation(b,c) 1,829,700
451,600 Wind River Systems, Inc.(b,c) 4,226,976
51,200 Xilinx, Inc.(c) 1,721,856
54,250 Zebra Technologies Corporation(b) 3,975,982
- -------------------------------------------------------------------------------------------------------------------------
Total Information Technology 124,078,707
=========================================================================================================================
Materials (4.7%)
- -------------------------------------------------------------------------------------------------------------------------
168,000 Consol Energy, Inc(b) 4,809,840
397,600 Domtar, Inc. 4,568,424
133,500 Georgia-Pacific Corporation 4,685,850
86,500 H.B. Fuller Company(b) 2,370,100
129,600 Jefferson Smurfit Corporation(c) 2,227,824
64,800 Lubrizol Corporation 2,060,640
45,000 Newmont Mining Corporation 1,683,000
276,700 Packaging Corporation of America 6,081,866
303,900 Pactiv Corporation(c) 6,974,505
101,100 Peabody Energy Corporation 4,740,579
55,400 Phelps Dodge Corporation(c) 3,646,982
- -------------------------------------------------------------------------------------------------------------------------
Total Materials 43,849,610
=========================================================================================================================
Utilities (3.0%)
- -------------------------------------------------------------------------------------------------------------------------
144,900 AGL Resources, Inc. 4,144,140
120,000 PPL Corporation 5,142,000
154,400 SCANA Corporation 5,311,360
217,900 Southern Union Company(b,c) 4,283,914
250,500 Williams Companies, Inc. 2,580,150
197,000 Wisconsin Energy Corporation 6,185,800
- -------------------------------------------------------------------------------------------------------------------------
Total Utilities 27,647,364
- -------------------------------------------------------------------------------------------------------------------------
Total Common Stock (cost $732,094,298) 807,352,115
=========================================================================================================================
Shares or
Principal Interest Maturity
Amount Collateral Held for Securities Loaned (9.6%) Rate (d) Date Value
- -------------------------------------------------------------------------------------------------------------------------
$949,185 BNP Paribas Letter of Credit 0.150% 10/21/2004 $949,185
88,364,378 State Street Navigator Securities Lending Prime
Portfolio 1.070 N/A 88,364,378
- -------------------------------------------------------------------------------------------------------------------------
Total Collateral Held for Securities Loaned (cost
$89,313,563) 89,313,563
=========================================================================================================================
Shares or
Principal Interest Maturity
Amount Short-Term Investments (3.9%) Rate (d) Date Value
- -------------------------------------------------------------------------------------------------------------------------
$16,850,000 Koch Industries, Inc. 1.020% 5/3/2004 $16,849,045
11,412,934 The AAL Money Market Fund 0.530 N/A 11,412,934
8,000,000 Thunder Bay Funding, Inc. 1.030 5/3/2004 7,999,542
- -------------------------------------------------------------------------------------------------------------------------
Total Short-Term Investments (at amortized cost) 36,261,521
- -------------------------------------------------------------------------------------------------------------------------
Total Investments (cost $857,669,382) $932,927,199
=========================================================================================================================
(a) The categories of investments are shown as apercentage of total
investments.
(b) All or a portion of the security is on loan as discussed in item 2(L)
of the Notes to Financial Statements.
(c) Non-income producing security.
(d) The interest rate shown reflects the yield, or for securities purchased
at a discount, the discount rate at the date of purchase.
The accompanying notes to the financial statements
are an integral part of this schedule.
The AAL Mid Cap Index Fund
Schedule of Investments as of April 30, 2004 (a)
Shares Common Stock (87.2%) Value
- -------------------------------------------------------------------------------------------------------------------------
Communications Services (0.5%)
- -------------------------------------------------------------------------------------------------------------------------
7,460 Cincinnati Bell, Inc.(b) $29,467
1,700 Price Communications Corporation(b) 26,894
1,835 Telephone and Data Systems, Inc. 121,037
- -------------------------------------------------------------------------------------------------------------------------
Total Communications Services 177,398
=========================================================================================================================
Consumer Discretionary (16.7%)
- -------------------------------------------------------------------------------------------------------------------------
2,166 99 CENTS Only Stores(b,c) 42,800
3,075 Abercrombie & Fitch Company 96,709
2,157 American Eagle Outfitters, Inc.(b,c) 55,413
2,100 American Greetings Corporation(b) 43,050
1,500 AnnTaylor Stores Corporation(b) 60,795
1,900 Applebee's International, Inc. 73,682
2,186 ArvinMeritor, Inc.(c) 45,228
780 Bandag, Inc. 33,969
2,195 Barnes & Noble, Inc.(b) 65,565
3,615 Belo Corporation 102,883
1,415 Blyth, Inc. 46,002
1,120 Bob Evans Farms, Inc. 34,339
2,365 Borders Group, Inc. 56,689
920 BorgWarner, Inc. 75,385
2,100 Boyd Gaming Corporation 49,350
2,990 Brinker International, Inc.(b) 114,995
9,220 Caesars Entertainment, Inc.(b) 122,165
2,450 Callaway Golf Company 41,576
3,300 CarMax, Inc.(b,c) 85,536
1,600 Catalina Marketing Corporation(b) 26,528
1,680 CBRL Group, Inc. 63,084
1,600 Cheesecake Factory, Inc.(b) 67,760
2,800 Chico's FAS, Inc.(b) 114,044
2,980 Claire's Stores, Inc. 60,732
5,900 Coach, Inc. 251,340
7,150 D.R. Horton, Inc. 205,920
3,702 Dollar Tree Stores, Inc.(b) 99,769
1,600 Emmis Communications Corporation(b) 37,440
1,700 Entercom Communications Corporation(b) 77,520
2,900 Extended Stay America, Inc. 56,405
1,800 Furniture Brands International, Inc.(c) 50,652
2,400 Gentex Corporation 94,392
1,860 GTECH Holdings Corporation 113,311
2,100 Harman International Industries, Inc. 159,285
2,735 Harte-Hanks, Inc. 65,531
2,000 Hovnanian Enterprises, Inc. 71,940
1,655 International Speedway Corporation 69,725
2,000 Krispy Kreme Doughnuts, Inc.(b,c) 65,020
2,175 Lear Corporation 131,848
1,560 Lee Enterprises, Inc. 74,537
4,900 Lennar Corporation 229,565
2,075 Mandalay Resort Group 119,209
735 Media General, Inc. 52,832
2,200 Michaels Stores, Inc. 110,066
1,240 Modine Manufacturing Company(c) 34,100
2,120 Mohawk Industries, Inc.(b) 163,537
1,625 Neiman Marcus Group, Inc. 79,040
1,800 O'Reilly Automotive, Inc.(b) 80,802
2,345 Outback Steakhouse, Inc. 103,016
2,400 Pacific Sunwear of California, Inc. 51,528
2,125 Payless ShoeSource, Inc.(b) 30,069
4,500 PETsMART, Inc. 124,650
2,700 Pier 1 Imports, Inc. 55,782
3,015 Reader's Digest Association, Inc. 43,205
1,300 Regis Corporation 56,446
2,600 Rent-A-Center, Inc. 76,102
4,820 Ross Stores, Inc. 147,010
2,200 Ruby Tuesday, Inc. 65,824
800 Ryland Group, Inc. 63,160
4,135 Saks, Inc. 59,544
1,210 Scholastic Corporation(b) 34,316
2,870 Six Flags, Inc.(b,c) 21,324
920 Superior Industries International, Inc.(c) 31,354
1,800 Thor Industries, Inc. 50,148
1,100 Timberland Company(b) 68,992
2,300 Toll Brothers, Inc.(b) 91,011
1,800 Tupperware Corporation 33,714
1,675 Valassis Communications, Inc.(b) 51,758
300 Washington Post Company 276,000
3,060 Westwood One, Inc.(b) 90,392
3,770 Williams-Sonoma, Inc.(b) 122,450
- -------------------------------------------------------------------------------------------------------------------------
Total Consumer Discretionary 5,819,860
=========================================================================================================================
Consumer Staples (4.2%)
- -------------------------------------------------------------------------------------------------------------------------
2,130 BJ's Wholesale Club, Inc.(b) 51,610
1,310 Church & Dwight Company, Inc. 58,884
3,400 Constellation Brands, Inc.(b) 112,642
4,957 Dean Foods Company 166,456
2,600 Energizer Holdings, Inc.(b) 112,580
4,225 Hormel Foods Corporation 128,820
1,470 Interstate Bakeries Corporation(c) 16,611
1,145 Lancaster Colony Corporation 47,288
4,610 PepsiAmericas, Inc. 92,338
1,480 Ruddick Corporation 30,192
3,300 Smithfield Foods, Inc.(b) 87,780
1,595 Smucker (J.M.) Company 83,418
1,654 Toostie Roll Industries, Inc. 57,628
10,792 Tyson Foods, Inc. 202,242
950 Universal Corporation 47,728
2,000 Whole Foods Market, Inc. 159,980
- -------------------------------------------------------------------------------------------------------------------------
Total Consumer Staples 1,456,197
=========================================================================================================================
Energy (5.8%)
- -------------------------------------------------------------------------------------------------------------------------
1,600 Cooper Cameron Corporation(b) 77,360
4,580 ENSCO International, Inc. 125,355
2,100 FMC Technologies, Inc.(b) 57,225
1,700 Forest Oil Corporation(b) 44,625
3,730 Grant Prideco, Inc.(b) 56,882
2,410 Hanover Compressor Company(b,c) 29,643
1,725 Helmerich & Payne, Inc. 46,558
2,970 Murphy Oil Corporation 203,445
2,700 National-Oilwell, Inc.(b) 75,384
1,800 Newfield Exploration Company(b) 94,824
1,790 Noble Energy, Inc. 82,519
1,270 Overseas Shipholding Group, Inc. 41,618
2,500 Patterson-UTI Energy, Inc.(b) 90,475
3,760 Pioneer Natural Resources Company 122,990
1,900 Pogo Producing Company 93,708
4,100 Pride International, Inc.(b) 69,167
3,150 Smith International, Inc.(b) 172,462
1,880 Tidewater, Inc. 53,035
3,055 Varco International, Inc.(b) 63,208
3,930 Weatherford International, Ltd.(b) 170,876
1,200 Western Gas Resources, Inc. 65,340
7,000 XTO Energy, Inc. 186,900
- -------------------------------------------------------------------------------------------------------------------------
Total Energy 2,023,599
=========================================================================================================================
Financials (16.4%)
- -------------------------------------------------------------------------------------------------------------------------
2,475 A.G. Edwards, Inc. 90,560
1,665 Allmerica Financial Corporation(b) 57,875
2,600 AMB Property Corporation 78,780
2,300 American Financial Group, Inc.(c) 70,610
4,800 AmeriCredit Corporation(b) 77,808
1,400 AmerUs Group Company(c) 54,040
2,296 Associated Banc-Corp 94,021
2,530 Astoria Financial Corporation 87,083
1,785 Bank of Hawaii Corporation 78,040
4,900 Banknorth Group, Inc. 150,087
2,200 Brown & Brown, Inc. 85,822
1,610 City National Corporation 99,256
4,000 Colonial BancGroup, Inc. 68,920
2,400 Commerce Bancorp, Inc.(c) 136,824
3,675 Compass Bancshares, Inc. 140,973
1,600 Cullen/Frost Bankers, Inc. 69,280
2,100 Eaton Vance Corporation 76,671
1,805 Everest Re Group, Ltd. 153,750
5,018 Fidelity National Financial, Inc. 183,659
2,400 First American Corporation 65,088
2,770 FirstMerit Corporation 65,261
2,900 Gallagher (Arthur J.) & Company 93,467
1,525 GATX Corporation 35,838
1,700 Greater Bay Bancorp(c) 48,229
4,187 GreenPoint Financial Corporation 163,293
1,900 HCC Insurance Holdings, Inc.(c) 60,838
4,775 Hibernia Corporation 104,047
1,700 Highwoods Properties, Inc. 38,335
1,330 Horace Mann Educators Corporation 20,761
2,200 Hospitality Properties Trust 85,976
2,500 Independence Community Bank Corporation 91,075
1,800 IndyMac Bancorp, Inc. 57,888
2,000 Investors Financial Services Corporation(c) 77,740
1,800 Jefferies Group, Inc. 61,380
1,900 LaBranche & Company, Inc.(c) 18,563
2,095 Legg Mason, Inc. 192,866
2,200 Leucadia National Corporation 108,394
2,600 Liberty Property Trust 95,030
1,900 Mack-Cali Realty Corporation 70,965
2,590 Mercantile Bankshares Corporation 111,163
1,500 MONY Group, Inc.(b,c) 46,425
6,244 National Commerce Financial Corporation 166,028
3,100 New Plan Excel Realty Trust, Inc. 69,564
8,500 New York Community Bancorp, Inc.(c) 213,095
1,915 Ohio Casualty Corporation(b,c) 37,572
5,477 Old Republic International Corporation 127,176
2,970 PMI Group, Inc. 127,799
2,155 Protective Life Corporation 77,494
1,415 Provident Financial Group, Inc.(c) 55,723
2,900 Radian Group, Inc. 134,879
2,400 Raymond James Financial, Inc. 60,288
1,522 Rayonier, Inc. REIT 59,358
3,300 SEI Investments Company 97,416
1,100 Silicon Valley Bancshares(b) 37,796
9,280 Sovereign Bancorp, Inc. 185,414
900 StanCorp Financial Group, Inc. 55,683
2,310 TCF Financial Corporation(c) 114,460
4,000 United Dominion Realty Trust, Inc. 71,800
2,015 Unitrin, Inc. 79,895
2,500 W.R. Berkley Corporation 101,250
2,600 Waddell & Reed Financial, Inc. 57,798
2,430 Washington Federal, Inc. 56,765
1,570 Webster Financial Corporation 68,295
1,025 Westamerica Bancorporation 49,815
2,070 Wilmington Trust Corporation(c) 71,974
- -------------------------------------------------------------------------------------------------------------------------
Total Financials 5,744,018
=========================================================================================================================
Health Care (10.3%)
- -------------------------------------------------------------------------------------------------------------------------
2,695 Apogent Technologies, Inc.(b) 87,372
1,545 Apria Healthcare Group, Inc.(b) 44,558
3,075 Barr Pharmaceuticals, Inc. 127,366
2,010 Beckman Coulter, Inc. 112,238
1,800 Cephalon, Inc.(b) 102,438
1,500 Charles River Laboratories International, Inc.(b) 69,000
3,000 Community Health Systems, Inc.(b) 77,370
1,970 Covance, Inc.(b) 66,468
2,900 Coventry Health Care, Inc. 121,336
3,300 Cytyc Corporation(b) 70,620
2,532 Dentsply International, Inc. 122,701
1,900 Edwards Lifesciences Corporation(b,c) 65,474
2,850 First Health Group Corporation(b) 47,595
6,540 Gilead Sciences, Inc.(b) 397,832
3,450 Health Net, Inc.(b) 87,768
1,400 Henry Schein, Inc.(b) 98,658
2,030 Hillenbrand Industries, Inc. 137,025
6,000 IVAX Corporation(b) 127,800
1,200 LifePoint Hospitals, Inc.(b,c) 42,912
3,030 Lincare Holdings, Inc.(b,c) 105,232
9,222 Millennium Pharmaceuticals, Inc.(b) 138,238
3,285 Omnicare, Inc. 136,262
2,700 Oxford Health Plans, Inc. 146,988
2,650 PacifiCare Health Systems, Inc.(c) 94,764
2,200 Patterson Dental Company(b) 162,140
2,130 Perrigo Company 45,944
1,000 Pharmaceutical Resources, Inc.(b) 40,300
3,000 Protein Design Labs, Inc.(b,c) 73,440
2,770 Sepracor, Inc.(b,c) 132,434
2,080 STERIS Corporation(b) 46,093
2,400 Triad Hospitals, Inc.(b) 81,624
1,900 Universal Health Services, Inc. 83,410
2,470 Valeant Pharmaceuticals(c) 57,057
2,200 Varian Medical Systems, Inc.(b) 188,848
2,300 Vertex Pharmaceuticals, Inc.(b) 19,872
1,450 VISX, Inc.(b) 31,740
- -------------------------------------------------------------------------------------------------------------------------
Total Health Care 3,590,917
=========================================================================================================================
Industrials (11.3%)
- -------------------------------------------------------------------------------------------------------------------------
2,810 AGCO Corporation(b) 54,092
835 Alaska Air Group, Inc.(b,c) 18,479
1,350 Alexander & Baldwin, Inc. 42,646
2,630 ALLETE, Inc. 90,866
1,200 Alliant Techsystems, Inc.(b) 71,148
2,220 AMETEK, Inc. 58,830
810 Banta Corporation 36,029
1,705 Brink's Company 47,280
2,610 C.H. Robinson Worldwide, Inc. 107,114
3,200 Career Education Corporation 204,800
965 Carlisle Companies, Inc. 57,176
2,800 ChoicePoint, Inc.(b,c,d) 122,976
1,615 CNF, Inc. 59,044
2,700 Copart, Inc.(b) 51,192
2,700 Corinthian Colleges, Inc. 82,674
2,195 DeVry, Inc.(b,c) 63,216
2,790 Donaldson Company, Inc. 76,530
2,300 Dun & Bradstreet Corporation(b) 120,175
1,600 Dycom Industries, Inc.(b) 37,728
2,200 Education Management Corporation 78,012
3,300 Expeditors International of Washington, Inc.(c) 132,627
2,470 Fastenal Company(c) 135,529
1,495 Federal Signal Corporation 27,209
1,800 Flowserve Corporation(b) 38,466
2,100 Graco, Inc. 59,220
1,330 Granite Construction, Inc.(c) 26,400
1,230 Harsco Corporation 53,542
2,280 Herman Miller, Inc. 59,918
1,715 HON INDUSTRIES, Inc. 63,472
1,855 Hubbell, Inc. 83,364
1,500 ITT Educational Services, Inc.(b) 60,495
2,380 J.B. Hunt Transport Services, Inc. 75,351
1,820 Jacobs Engineering Group, Inc.(b) 75,912
3,100 JetBlue Airways Corporation(c) 85,808
1,090 Kelly Services, Inc. 32,395
1,165 Kennametal, Inc. 50,281
1,200 Korn/Ferry International(b) 17,976
3,350 L-3 Communications Holdings, Inc.(c) 206,829
2,850 Manpower, Inc.(d) 133,665
1,260 Nordson Corporation 43,546
1,615 Pentair, Inc. 96,238
2,000 Precision Castparts Corporation 90,020
3,500 Quanta Services, Inc.(b,c) 19,145
4,800 Republic Services, Inc. 138,336
1,560 Rollins, Inc.(c) 37,050
375 Sequa Corporation(b) 18,311
1,805 Sotheby's Holdings, Inc.(b) 23,447
2,440 SPX Corporation 108,214
1,300 Stericycle, Inc.(b) 62,166
2,550 Swift Transportation Company, Inc.(b) 43,146
1,400 Sylvan Learning Systems, Inc.(b) 49,350
585 Tecumseh Products Company 22,739
1,235 Teleflex, Inc. 56,378
1,420 Trinity Industries, Inc.(c) 43,012
2,300 United Rentals, Inc.(b) 39,560
2,815 Viad Corporation 70,262
2,475 Werner Enterprises, Inc. 49,475
1,220 York International Corporation 47,824
- -------------------------------------------------------------------------------------------------------------------------
Total Industrials 3,956,685
=========================================================================================================================
Information Technology (12.6%)
- -------------------------------------------------------------------------------------------------------------------------
11,700 3Com Corporation(b) 72,072
4,050 Activision, Inc. 60,993
2,545 Acxiom Corporation 58,891
2,390 ADTRAN, Inc. 58,579
2,600 Advanced Fibre Communications, Inc.(b) 43,420
1,100 Advent Software, Inc.(b) 20,548
3,625 Arrow Electronics, Inc.(b,c) 91,640
1,778 Ascential Software Corporation(b) 30,226
14,490 Atmel Corporation(b) 84,622
3,860 Avnet, Inc.(b) 83,530
1,600 Avocent Corporation(b) 51,344
3,600 BISYS Group, Inc.(b,c) 52,200
817 Cabot Microelectronics Corporation(b,c) 24,126
8,080 Cadence Design Systems, Inc.(b) 103,586
2,650 CDW Corporation 165,598
4,600 Ceridian Corporation(b) 98,348
1,900 Certegy, Inc. 67,982
2,470 CheckFree Corporation(b,c) 74,199
2,100 Cognizant Technology Solutions Corporation(b) 90,846
1,800 CommScope, Inc.(b) 31,518
1,900 Credence Systems Corporation(b,c) 21,166
2,200 Cree, Inc.(b,c) 40,810
1,545 CSG Systems International, Inc.(b) 25,941
3,640 Cypress Semiconductor Corporation(b,c) 50,851
2,290 Diebold, Inc. 105,546
2,690 DST Systems, Inc.(b,c) 118,764
2,300 Fair Isaac Corporation 77,556
3,600 Fairchild Semiconductor International, Inc.(b) 70,092
3,900 Gartner Group, Inc.(b,c) 46,566
2,195 Harris Corporation 98,885
1,100 Imation Corporation 42,867
2,200 Integrated Circuit Systems, Inc.(b) 52,118
3,205 Integrated Device Technology, Inc.(b) 43,107
2,100 International Rectifier Corporation(b) 83,244
1,600 Internet Security Systems, Inc.(b) 21,264
4,200 Intersil Corporation 82,950
2,700 Jack Henry & Associates, Inc. 49,113
2,015 Keane, Inc.(b) 28,613
2,600 KEMET Corporation(b) 32,188
4,000 Lam Research Corporation(b) 88,560
3,500 Lattice Semiconductor Corporation(b) 24,920
1,900 LTX Corporation(b,c) 20,767
2,100 Macromedia, Inc.(b) 43,260
1,500 Macrovision Corporation(b) 25,260
3,500 McDATA Corporation(b,c) 18,655
2,050 Mentor Graphics Corporation(b) 34,010
2,800 Micrel, Inc.(b) 34,216
6,560 Microchip Technology, Inc. 183,811
3,125 MPS Group, Inc.(b) 34,188
2,350 National Instruments Corporation(c) 71,816
4,895 Network Associates, Inc.(b) 76,754
1,200 Newport Corporation(b) 17,808
1,500 Plantronics, Inc.(b) 56,925
1,500 Plexus Corporation(b,c) 21,570
2,990 Polycom, Inc.(b) 57,049
2,100 Powerwave Technologies, Inc.(b,c) 14,217
5,580 Quantum Corporation(b,c) 17,465
1,700 Retek, Inc.(b) 11,866
2,055 Reynolds & Reynolds Company 58,691
5,700 RF Micro Devices, Inc.(b,c) 41,952
1,800 RSA Security, Inc.(b,c) 28,836
5,100 SanDisk Corporation(c) 117,861
2,300 Semtech Corporation(b) 48,346
1,700 Silicon Laboratories, Inc.(b,c) 80,155
3,560 Storage Technology Corporation(b) 93,521
2,900 Sybase, Inc.(b) 49,590
5,000 Synopsys, Inc. 133,650
1,845 Tech Data Corporation(b) 62,730
2,500 Titan Corporation(b) 48,000
1,185 Transaction Systems Architects, Inc.(b) 25,158
4,115 TriQuint Semiconductor, Inc.(b) 22,591
1,100 Varian, Inc.(b) 45,144
4,895 Vishay Intertechnology, Inc.(b,c) 85,173
2,500 Wind River Systems, Inc.(b) 23,400
1,500 Zebra Technologies Corporation 109,935
- -------------------------------------------------------------------------------------------------------------------------
Total Information Technology 4,383,759
=========================================================================================================================
Materials (3.8%)
- -------------------------------------------------------------------------------------------------------------------------
2,195 Airgas, Inc. 48,619
1,280 Albemarle Corporation 37,440
1,600 Arch Coal, Inc. 48,976
1,745 Bowater, Inc. 73,203
1,875 Cabot Corporation 63,375
3,420 Crompton Corporation 21,272
1,265 Cytec Industries, Inc. 49,740
1,290 Ferro Corporation 33,398
1,100 FMC Corporation(b) 47,179
1,440 Glatfelter Company 16,171
3,580 IMC Global, Inc. 45,001
1,620 Longview Fibre Company 16,978
1,770 Lubrizol Corporation 56,286
5,510 Lyondell Chemical Company 90,088
1,505 Martin Marietta Materials, Inc. 65,091
670 Minerals Technologies, Inc. 39,296
2,185 Olin Corporation 37,735
3,400 Packaging Corporation of America 74,732
2,600 Peabody Energy Corporation 121,914
900 Potlatch Corporation 34,092
3,715 RPM International, Inc. 56,022
1,000 Scotts Company(b,c) 65,950
1,610 Sensient Technologies Corporation(c) 32,941
3,175 Sonoco Products Company 78,930
1,600 Valspar Corporation 79,440
- -------------------------------------------------------------------------------------------------------------------------
Total Materials 1,333,869
=========================================================================================================================
Utilities (5.6%)
- -------------------------------------------------------------------------------------------------------------------------
1,985 AGL Resources, Inc. 56,771
3,375 Alliant Energy Corporation 83,902
2,925 Aqua America, Inc. 59,816
5,895 Aquila, Inc.(b) 25,054
1,170 Black Hills Corporation 35,790
3,845 DPL, Inc. 67,749
2,350 Duquesne Light Holdings, Inc.(c) 44,110
4,565 Energy East Corporation 107,506
1,900 Equitable Resources, Inc. 89,281
2,130 Great Plains Energy, Inc. 66,477
1,285 Hawaiian Electric Industries, Inc.(c) 63,942
1,225 IDACORP, Inc. 36,321
3,500 MDU Resources Group, Inc. 78,400
2,670 National Fuel Gas Company 65,388
3,825 Northeast Utilities Service Company 70,189
1,815 NSTAR 87,846
2,765 OGE Energy Corporation 66,498
3,100 ONEOK, Inc. 64,945
5,232 Pepco Holdings, Inc. 99,094
1,330 PNM Resources, Inc.(c) 38,809
3,125 Puget Energy, Inc. 68,625
2,605 Questar Corporation 92,399
3,390 SCANA Corporation 116,616
3,570 Sierra Pacific Resources(b,c) 25,276
2,440 Vectren Corporation(c) 58,926
2,500 Westar Energy, Inc. 51,025
1,580 WGL Holdings, Inc. 44,682
3,710 Wisconsin Energy Corporation 116,494
1,300 WPS Resources Corporation 59,553
- -------------------------------------------------------------------------------------------------------------------------
Total Utilities 1,941,484
- -------------------------------------------------------------------------------------------------------------------------
Total Common Stock (cost $26,429,698) 30,427,786
=========================================================================================================================
Shares or
Principal Interest Maturity
Amount Collateral Held for Securities Loaned (9.3%) Rate (e) Date Value
- -------------------------------------------------------------------------------------------------------------------------
$21,411 BNP Paribas Letter of Credit 0.150% 10/21/2004 $21,411
3,221,580 State Street Navigator Securities Lending Prime
Portfolio 1.070 N/A 3,221,580
- -------------------------------------------------------------------------------------------------------------------------
Total Collateral Held for Securities Loaned (cost
$3,242,991) 3,242,991
=========================================================================================================================
Shares or
Principal Interest Maturity
Amount Short-Term Investments (3.5%) Rate (e) Date Value
- -------------------------------------------------------------------------------------------------------------------------
$500,000 Federal Home Loan Bank 1.000% 5/5/2004 $499,944
743,917 The AAL Money Market Fund(d) 0.530 N/A 743,917
- -------------------------------------------------------------------------------------------------------------------------
Total Short-Term Investments (at amortized cost) 1,243,861
- -------------------------------------------------------------------------------------------------------------------------
Total Investments (cost $30,916,550) $34,914,638
=========================================================================================================================
(a) The categories of investments are shown as apercentage of total
investments.
(b) Non-income producing security.
(c) All or a portion of the security is on loan as discussed in item 2(L)
of the Notes to Financial Statements.
(d) At April 30, 2004, $58,800 in cash was pledged as the initial margin
deposit for open financial futures contracts. In addition, 2,800 shares of
ChoicePoint, Inc. common stock valued at $122,976, 2,850 shares of
Manpower, Inc. common stock valued at $133,665 and $1,243,861 of Short-Term
Investments were earmarked as collateral to cover open financial futures
contracts as follows:
Number of Expiration Principal Unrealized
Type Contracts Date Position Value Amount Loss
- -------------------------------------------------------------------------------------------------------------------------
S&P 400 Mini Futures 24 June 2004 Long $1,399,680 $1,446,567 $46,887
(e) The interest rate shown reflects the yield, or for securities purchased
at a discount, the discount rate at the date of purchase.
The accompanying notes to the financial statements
are an integral part of this schedule.
The AAL Mid Cap Index Fund II
Schedule of Investments as of April 30, 2004(a)
Shares Common Stock (89.4%) Value
- -------------------------------------------------------------------------------------------------------------------------
Communications Services (0.5%)
- -------------------------------------------------------------------------------------------------------------------------
10,110 Cincinnati Bell, Inc.(b) $39,934
2,300 Price Communications Corporation(b) 36,386
2,510 Telephone and Data Systems, Inc. 165,560
- -------------------------------------------------------------------------------------------------------------------------
Total Communications Services 241,880
=========================================================================================================================
Consumer Discretionary (17.1%)
- -------------------------------------------------------------------------------------------------------------------------
3,000 99 CENTS Only Stores(b,c) 59,280
4,170 Abercrombie & Fitch Company 131,146
3,100 American Eagle Outfitters, Inc.(b,c) 79,639
2,900 American Greetings Corporation(b) 59,450
2,000 AnnTaylor Stores Corporation(b) 81,060
2,300 Applebee's International, Inc. 89,194
3,017 ArvinMeritor, Inc. 62,422
980 Bandag, Inc. 42,679
2,960 Barnes & Noble, Inc.(b) 88,415
5,010 Belo Corporation 142,585
2,010 Blyth, Inc. 65,345
1,610 Bob Evans Farms, Inc. 49,363
3,360 Borders Group, Inc. 80,539
1,220 BorgWarner, Inc. 99,967
2,800 Boyd Gaming Corporation 65,800
4,175 Brinker International, Inc.(b) 160,570
12,480 Caesars Entertainment, Inc.(b) 165,360
3,250 Callaway Golf Company 55,152
4,500 CarMax, Inc.(b,c) 116,640
2,200 Catalina Marketing Corporation(b) 36,476
2,100 CBRL Group, Inc. 78,855
2,300 Cheesecake Factory, Inc.(b) 97,405
3,800 Chico's FAS, Inc.(b) 154,774
4,160 Claire's Stores, Inc. 84,781
8,100 Coach, Inc. 345,057
10,075 D.R. Horton, Inc. 290,160
4,970 Dollar Tree Stores, Inc.(b) 133,942
2,300 Emmis Communications Corporation(b,c) 53,820
2,300 Entercom Communications Corporation(b) 104,880
4,100 Extended Stay America, Inc. 79,745
2,420 Furniture Brands International, Inc. 68,099
3,300 Gentex Corporation 129,789
2,600 GTECH Holdings Corporation 158,392
2,900 Harman International Industries, Inc. 219,965
3,620 Harte-Hanks, Inc. 86,735
2,700 Hovnanian Enterprises, Inc. 97,119
2,350 International Speedway Corporation 99,006
2,700 Krispy Kreme Doughnuts, Inc.(b,c) 87,777
2,960 Lear Corporation 179,435
1,970 Lee Enterprises, Inc. 94,127
6,700 Lennar Corporation 313,895
2,870 Mandalay Resort Group 164,882
1,110 Media General, Inc. 79,787
3,000 Michaels Stores, Inc. 150,090
1,550 Modine Manufacturing Company 42,625
2,960 Mohawk Industries, Inc.(b) 228,334
2,110 Neiman Marcus Group, Inc.(c) 102,630
2,400 O'Reilly Automotive, Inc.(b) 107,736
3,260 Outback Steakhouse, Inc.(c) 143,212
3,200 Pacific Sunwear of California, Inc. 68,704
2,770 Payless ShoeSource, Inc.(b) 39,196
6,200 PETsMART, Inc. 171,740
3,700 Pier 1 Imports, Inc. 76,442
4,090 Reader's Digest Association, Inc. 58,610
1,900 Regis Corporation 82,498
3,500 Rent-A-Center, Inc. 102,445
6,500 Ross Stores, Inc. 198,250
2,800 Ruby Tuesday, Inc. 83,776
1,100 Ryland Group, Inc. 86,845
5,710 Saks, Inc. 82,224
1,680 Scholastic Corporation(b) 47,645
3,870 Six Flags, Inc.(b,c) 28,754
1,120 Superior Industries International, Inc.(c) 38,170
2,500 Thor Industries, Inc. 69,650
1,500 Timberland Company(b) 94,080
3,200 Toll Brothers, Inc.(b) 126,624
2,500 Tupperware Corporation 46,825
2,260 Valassis Communications, Inc.(b) 69,834
410 Washington Post Company 377,200
4,350 Westwood One, Inc.(b) 128,499
5,060 Williams-Sonoma, Inc.(b) 164,349
- -------------------------------------------------------------------------------------------------------------------------
Total Consumer Discretionary 7,950,496
=========================================================================================================================
Consumer Staples (4.2%)
- -------------------------------------------------------------------------------------------------------------------------
3,020 BJ's Wholesale Club, Inc.(b) 73,175
1,820 Church & Dwight Company, Inc. 81,809
4,600 Constellation Brands, Inc.(b) 152,398
6,713 Dean Foods Company 225,423
3,550 Energizer Holdings, Inc.(b) 153,715
6,000 Hormel Foods Corporation 182,940
1,860 Interstate Bakeries Corporation(c) 21,018
1,630 Lancaster Colony Corporation 67,319
5,960 PepsiAmericas, Inc. 119,379
1,990 Ruddick Corporation 40,596
4,600 Smithfield Foods, Inc.(b) 122,360
2,188 Smucker (J.M.) Company 114,432
2,310 Toostie Roll Industries, Inc. 80,494
14,522 Tyson Foods, Inc. 272,142
1,140 Universal Corporation 57,274
2,700 Whole Foods Market, Inc. 215,973
- -------------------------------------------------------------------------------------------------------------------------
Total Consumer Staples 1,980,447
=========================================================================================================================
Energy (6.0%)
- -------------------------------------------------------------------------------------------------------------------------
2,400 Cooper Cameron Corporation(b) 116,040
6,170 ENSCO International, Inc. 168,873
2,900 FMC Technologies, Inc.(b) 79,025
2,200 Forest Oil Corporation(b) 57,750
4,920 Grant Prideco, Inc.(b) 75,030
3,190 Hanover Compressor Company(b) 39,237
2,220 Helmerich & Payne, Inc. 59,918
3,960 Murphy Oil Corporation 271,260
3,500 National-Oilwell, Inc.(b) 97,720
2,500 Newfield Exploration Company(b) 131,700
2,470 Noble Energy, Inc. 113,867
1,690 Overseas Shipholding Group, Inc. 55,381
3,600 Patterson-UTI Energy, Inc.(b) 130,284
4,850 Pioneer Natural Resources Company 158,644
2,800 Pogo Producing Company 138,096
5,600 Pride International, Inc.(b) 94,472
4,360 Smith International, Inc.(b) 238,710
2,510 Tidewater, Inc. 70,807
3,980 Varco International, Inc.(b) 82,346
5,720 Weatherford International, Ltd.(b) 248,706
1,500 Western Gas Resources, Inc. 81,675
9,900 XTO Energy, Inc. 264,330
- -------------------------------------------------------------------------------------------------------------------------
Total Energy 2,773,871
=========================================================================================================================
Financials (16.9%)
- -------------------------------------------------------------------------------------------------------------------------
3,460 A.G. Edwards, Inc. 126,601
2,360 Allmerica Financial Corporation(b) 82,034
3,500 AMB Property Corporation 106,050
3,200 American Financial Group, Inc.(c) 98,240
6,500 AmeriCredit Corporation(b,c) 105,365
1,700 AmerUs Group Company(c) 65,620
3,119 Associated Banc-Corp 127,723
3,480 Astoria Financial Corporation 119,782
2,370 Bank of Hawaii Corporation(c) 103,616
6,850 Banknorth Group, Inc. 209,816
3,000 Brown & Brown, Inc. 117,030
2,100 City National Corporation 129,465
5,300 Colonial BancGroup, Inc. 91,319
3,200 Commerce Bancorp, Inc. 182,432
5,220 Compass Bancshares, Inc. 200,239
2,200 Cullen/Frost Bankers, Inc. 95,260
2,900 Eaton Vance Corporation 105,879
2,390 Everest Re Group, Ltd. 203,580
7,027 Fidelity National Financial, Inc. 257,188
3,400 First American Corporation 92,208
3,550 FirstMerit Corporation 83,638
3,700 Gallagher (Arthur J.) & Company 119,251
2,100 GATX Corporation 49,350
2,100 Greater Bay Bancorp(c) 59,577
5,755 GreenPoint Financial Corporation 224,445
2,700 HCC Insurance Holdings, Inc.(c) 86,454
6,460 Hibernia Corporation 140,763
2,200 Highwoods Properties, Inc. 49,610
1,850 Horace Mann Educators Corporation(c) 28,878
2,900 Hospitality Properties Trust 113,332
3,500 Independence Community Bank Corporation 127,505
2,400 IndyMac Bancorp, Inc. 77,184
2,800 Investors Financial Services Corporation(c) 108,836
2,400 Jefferies Group, Inc. 81,840
2,400 LaBranche & Company, Inc.(c) 23,448
2,930 Legg Mason, Inc. 269,736
3,000 Leucadia National Corporation 147,810
3,600 Liberty Property Trust 131,580
2,600 Mack-Cali Realty Corporation 97,110
3,280 Mercantile Bankshares Corporation 140,778
2,100 MONY Group, Inc.(b,c) 64,995
8,820 National Commerce Financial Corporation 234,524
4,300 New Plan Excel Realty Trust, Inc. 96,492
11,210 New York Community Bancorp, Inc.(c) 281,035
2,510 Ohio Casualty Corporation(b,c) 49,246
7,465 Old Republic International Corporation 173,337
4,040 PMI Group, Inc. 173,841
2,950 Protective Life Corporation 106,082
2,010 Provident Financial Group, Inc.(c) 79,154
4,100 Radian Group, Inc. 190,691
3,150 Raymond James Financial, Inc. 79,128
2,152 Rayonier, Inc. REIT 83,928
4,600 SEI Investments Company 135,792
1,500 Silicon Valley Bancshares(b) 51,540
12,520 Sovereign Bancorp, Inc. 250,150
1,400 StanCorp Financial Group, Inc. 86,618
2,990 TCF Financial Corporation 148,154
5,400 United Dominion Realty Trust, Inc. 96,930
2,990 Unitrin, Inc. 118,554
3,600 W.R. Berkley Corporation 145,800
3,500 Waddell & Reed Financial, Inc. 77,805
3,379 Washington Federal, Inc. 78,933
2,050 Webster Financial Corporation 89,175
1,510 Westamerica Bancorporation 73,386
2,840 Wilmington Trust Corporation 98,747
- -------------------------------------------------------------------------------------------------------------------------
Total Financials 7,844,609
=========================================================================================================================
Health Care (10.5%)
- -------------------------------------------------------------------------------------------------------------------------
3,890 Apogent Technologies, Inc.(b) 126,114
2,040 Apria Healthcare Group, Inc.(b) 58,834
4,325 Barr Pharmaceuticals, Inc. 179,142
2,700 Beckman Coulter, Inc. 150,768
2,400 Cephalon, Inc.(b) 136,584
2,000 Charles River Laboratories International, Inc.(b) 92,000
4,300 Community Health Systems, Inc.(b) 110,897
2,690 Covance, Inc.(b) 90,761
3,900 Coventry Health Care, Inc. 163,176
4,600 Cytyc Corporation(b) 98,440
3,460 Dentsply International, Inc. 167,672
2,390 Edwards Lifesciences Corporation(b) 82,359
4,020 First Health Group Corporation(b) 67,134
8,920 Gilead Sciences, Inc.(b) 542,604
4,740 Health Net, Inc.(b) 120,586
1,900 Henry Schein, Inc.(b) 133,893
2,730 Hillenbrand Industries, Inc. 184,275
8,425 IVAX Corporation(b) 179,452
1,700 LifePoint Hospitals, Inc.(b,c) 60,792
4,300 Lincare Holdings, Inc.(b) 149,339
12,738 Millennium Pharmaceuticals, Inc.(b) 190,943
4,480 Omnicare, Inc. 185,830
3,600 Oxford Health Plans, Inc. 195,984
3,600 PacifiCare Health Systems, Inc.(c) 128,736
3,000 Patterson Dental Company(b) 221,100
2,820 Perrigo Company 60,827
1,400 Pharmaceutical Resources, Inc.(b) 56,420
4,100 Protein Design Labs, Inc.(b) 100,368
3,620 Sepracor, Inc.(b,c) 173,072
3,070 STERIS Corporation(b) 68,031
3,300 Triad Hospitals, Inc.(b) 112,233
2,600 Universal Health Services, Inc. 114,140
3,570 Valeant Pharmaceuticals(c) 82,467
2,900 Varian Medical Systems, Inc.(b) 248,936
3,200 Vertex Pharmaceuticals, Inc.(b) 27,648
2,020 VISX, Inc.(b) 44,218
- -------------------------------------------------------------------------------------------------------------------------
Total Health Care 4,905,775
=========================================================================================================================
Industrials (11.7%)
- -------------------------------------------------------------------------------------------------------------------------
3,810 AGCO Corporation(b) 73,342
1,220 Alaska Air Group, Inc.(b) 26,999
1,850 Alexander & Baldwin, Inc. 58,442
3,730 ALLETE, Inc. 128,872
1,700 Alliant Techsystems, Inc.(b) 100,793
2,840 AMETEK, Inc. 75,260
1,210 Banta Corporation 53,821
2,240 Brink's Company 62,115
3,720 C.H. Robinson Worldwide, Inc. 152,669
4,400 Career Education Corporation 281,600
1,360 Carlisle Companies, Inc. 80,580
3,833 ChoicePoint, Inc.(b) 168,345
2,110 CNF, Inc. 77,142
3,800 Copart, Inc.(b) 72,048
3,900 Corinthian Colleges, Inc. 119,418
3,090 DeVry, Inc.(b) 88,992
3,680 Donaldson Company, Inc. 100,942
3,200 Dun & Bradstreet Corporation(b) 167,200
2,000 Dycom Industries, Inc.(b) 47,160
3,200 Education Management Corporation 113,472
4,600 Expeditors International of Washington, Inc. 184,874
3,340 Fastenal Company 183,266
2,080 Federal Signal Corporation(c) 37,856
2,420 Flowserve Corporation(b) 51,715
2,850 Graco, Inc. 80,370
1,845 Granite Construction, Inc. 36,623
1,740 Harsco Corporation 75,742
3,170 Herman Miller, Inc. 83,308
2,510 HON INDUSTRIES, Inc. 92,895
2,530 Hubbell, Inc. 113,698
1,900 ITT Educational Services, Inc.(b) 76,627
3,500 J.B. Hunt Transport Services, Inc. 110,810
2,440 Jacobs Engineering Group, Inc.(b) 101,772
4,400 JetBlue Airways Corporation(c) 121,792
1,600 Kelly Services, Inc. 47,552
1,660 Kennametal, Inc. 71,646
1,600 Korn/Ferry International(b) 23,968
4,560 L-3 Communications Holdings, Inc. 281,534
3,840 Manpower, Inc. 180,096
1,580 Nordson Corporation 54,605
2,110 Pentair, Inc. 125,735
2,820 Precision Castparts Corporation 126,928
4,790 Quanta Services, Inc.(b,c) 26,201
6,500 Republic Services, Inc. 187,330
1,875 Rollins, Inc. 44,531
590 Sequa Corporation(b) 28,810
2,500 Sotheby's Holdings, Inc.(b) 32,475
3,340 SPX Corporation 148,129
1,800 Stericycle, Inc.(b) 86,076
3,430 Swift Transportation Company, Inc.(b) 58,036
1,900 Sylvan Learning Systems, Inc.(b) 66,975
960 Tecumseh Products Company 37,315
1,720 Teleflex, Inc. 78,518
2,030 Trinity Industries, Inc.(c) 61,489
3,200 United Rentals, Inc.(b) 55,040
3,590 Viad Corporation 89,606
3,300 Werner Enterprises, Inc. 65,967
1,720 York International Corporation 67,424
- -------------------------------------------------------------------------------------------------------------------------
Total Industrials 5,446,546
=========================================================================================================================
Information Technology (12.9%)
- -------------------------------------------------------------------------------------------------------------------------
15,800 3Com Corporation(b) 97,328
5,700 Activision, Inc. 85,842
3,530 Acxiom Corporation 81,684
3,460 ADTRAN, Inc. 84,805
3,700 Advanced Fibre Communications, Inc.(b) 61,790
1,500 Advent Software, Inc.(b) 28,020
4,920 Arrow Electronics, Inc.(b) 124,378
2,595 Ascential Software Corporation(b) 44,115
19,560 Atmel Corporation(b) 114,230
5,240 Avnet, Inc.(b) 113,394
2,160 Avocent Corporation(b) 69,314
4,900 BISYS Group, Inc.(b,c) 71,050
1,115 Cabot Microelectronics Corporation(b,c) 32,926
10,880 Cadence Design Systems, Inc.(b) 139,482
3,640 CDW Corporation 227,464
6,100 Ceridian Corporation(b) 130,418
2,700 Certegy, Inc. 96,606
3,390 CheckFree Corporation(b,c) 101,836
2,800 Cognizant Technology Solutions Corporation(b) 121,128
2,530 CommScope, Inc.(b) 44,300
2,600 Credence Systems Corporation(b,c) 28,964
3,100 Cree, Inc.(b,c) 57,505
2,140 CSG Systems International, Inc.(b) 35,931
5,110 Cypress Semiconductor Corporation(b,c) 71,387
3,200 Diebold, Inc. 147,488
3,660 DST Systems, Inc.(b) 161,589
3,050 Fair Isaac Corporation 102,846
5,100 Fairchild Semiconductor International, Inc.(b) 99,297
5,300 Gartner Group, Inc.(b,c) 63,282
2,890 Harris Corporation 130,194
1,600 Imation Corporation 62,352
3,200 Integrated Circuit Systems, Inc.(b) 75,808
4,490 Integrated Device Technology, Inc.(b) 60,390
2,900 International Rectifier Corporation(b) 114,956
2,100 Internet Security Systems, Inc.(b) 27,909
5,900 Intersil Corporation 116,525
3,700 Jack Henry & Associates, Inc. 67,303
2,600 Keane, Inc.(b) 36,920
3,600 KEMET Corporation(b) 44,568
5,700 Lam Research Corporation(b) 126,198
4,700 Lattice Semiconductor Corporation(b) 33,464
2,500 LTX Corporation(b) 27,325
2,820 Macromedia, Inc.(b) 58,092
2,000 Macrovision Corporation(b) 33,680
4,800 McDATA Corporation(b,c) 25,584
2,740 Mentor Graphics Corporation(b) 45,457
3,710 Micrel, Inc.(b) 45,336
9,035 Microchip Technology, Inc. 253,161
4,220 MPS Group, Inc.(b) 46,167
3,450 National Instruments Corporation(c) 105,432
6,880 Network Associates, Inc.(b,c) 107,878
1,700 Newport Corporation(b) 25,228
2,000 Plantronics, Inc.(b) 75,900
1,800 Plexus Corporation(b) 25,884
4,200 Polycom, Inc.(b,c) 80,136
2,620 Powerwave Technologies, Inc.(b,c) 17,737
7,460 Quantum Corporation(b,c) 23,350
2,300 Retek, Inc.(b) 16,054
2,950 Reynolds & Reynolds Company 84,252
7,600 RF Micro Devices, Inc.(b,c) 55,936
2,400 RSA Security, Inc.(b) 38,448
6,900 SanDisk Corporation(c) 159,459
3,260 Semtech Corporation(b) 68,525
2,300 Silicon Laboratories, Inc.(b,c) 108,445
4,750 Storage Technology Corporation(b) 124,782
3,960 Sybase, Inc.(b) 67,716
6,780 Synopsys, Inc. 181,229
2,540 Tech Data Corporation(b) 86,360
3,430 Titan Corporation(b) 65,856
1,580 Transaction Systems Architects, Inc.(b) 33,543
5,479 TriQuint Semiconductor, Inc.(b) 30,080
1,500 Varian, Inc.(b) 61,560
6,770 Vishay Intertechnology, Inc.(b) 117,798
3,400 Wind River Systems, Inc.(b) 31,824
2,100 Zebra Technologies Corporation 153,909
- -------------------------------------------------------------------------------------------------------------------------
Total Information Technology 6,017,109
=========================================================================================================================
Materials (3.9%)
- -------------------------------------------------------------------------------------------------------------------------
3,090 Airgas, Inc. 68,444
1,790 Albemarle Corporation 52,358
2,100 Arch Coal, Inc. 64,281
2,340 Bowater, Inc. 98,163
2,570 Cabot Corporation 86,866
4,770 Crompton Corporation 29,669
1,750 Cytec Industries, Inc. 68,810
1,790 Ferro Corporation 46,343
1,500 FMC Corporation(b) 64,335
1,960 Glatfelter Company 22,011
4,770 IMC Global, Inc. 59,959
2,240 Longview Fibre Company 23,475
2,260 Lubrizol Corporation 71,868
7,600 Lyondell Chemical Company(d) 124,260
2,100 Martin Marietta Materials, Inc. 90,825
970 Minerals Technologies, Inc. 56,890
2,880 Olin Corporation 49,738
4,400 Packaging Corporation of America 96,712
3,500 Peabody Energy Corporation 164,115
1,300 Potlatch Corporation 49,244
4,790 RPM International, Inc. 72,233
1,400 Scotts Company(b,c) 92,330
2,020 Sensient Technologies Corporation(c) 41,329
4,040 Sonoco Products Company 100,434
2,160 Valspar Corporation(c,d) 107,244
- -------------------------------------------------------------------------------------------------------------------------
Total Materials 1,801,936
=========================================================================================================================
Utilities (5.7%)
- -------------------------------------------------------------------------------------------------------------------------
2,760 AGL Resources, Inc. 78,936
4,670 Alliant Energy Corporation 116,096
3,875 Aqua America, Inc. 79,244
8,090 Aquila, Inc.(b) 34,382
1,480 Black Hills Corporation 45,273
5,220 DPL, Inc. 91,976
3,170 Duquesne Light Holdings, Inc.(c) 59,501
6,050 Energy East Corporation 142,478
2,700 Equitable Resources, Inc. 126,873
2,930 Great Plains Energy, Inc. 91,445
1,770 Hawaiian Electric Industries, Inc. 88,075
1,720 IDACORP, Inc.(c) 50,998
5,050 MDU Resources Group, Inc. 113,120
3,560 National Fuel Gas Company 87,184
5,260 Northeast Utilities Service Company 96,521
2,270 NSTAR 109,868
3,660 OGE Energy Corporation 88,023
4,300 ONEOK, Inc. 90,085
7,055 Pepco Holdings, Inc. 133,622
1,840 PNM Resources, Inc.(c) 53,691
4,220 Puget Energy, Inc. 92,671
3,580 Questar Corporation 126,983
4,590 SCANA Corporation(c) 157,896
4,770 Sierra Pacific Resources(b,c) 33,772
3,220 Vectren Corporation 77,763
3,600 Westar Energy, Inc. 73,476
2,090 WGL Holdings, Inc. 59,105
5,120 Wisconsin Energy Corporation 160,768
1,500 WPS Resources Corporation 68,715
- -------------------------------------------------------------------------------------------------------------------------
Total Utilities 2,628,540
- -------------------------------------------------------------------------------------------------------------------------
Total Common Stock (cost $35,152,084) 41,591,209
=========================================================================================================================
Interest Maturity
Shares Collateral Held for Securities Loaned (6.6%) Rate (e) Date Value
- -------------------------------------------------------------------------------------------------------------------------
3,072,047 State Street Navigator Securities Lending Prime
Portfolio 1.070% N/A $3,072,047
- -------------------------------------------------------------------------------------------------------------------------
Total Collateral Held for Securities Loaned (cost
$3,072,047) 3,072,047
=========================================================================================================================
Interest Maturity
Shares Short-Term Investments (4.0%) Rate (e) Date Value
- -------------------------------------------------------------------------------------------------------------------------
1,848,410 The AAL Money Market Fund(d) 0.530% N/A $1,848,410
- -------------------------------------------------------------------------------------------------------------------------
Total Short-Term Investments (at amortized cost) 1,848,410
- -------------------------------------------------------------------------------------------------------------------------
Total Investments (cost $40,072,541) $46,511,666
=========================================================================================================================
(a) The categories of investments are shown as apercentage of total
investments.
(b) Non-income producing security.
(c) All or a portion of the security is on loan as discussed in item 2(L)
of the Notes to Financial Statements.
(d) At April 30, 2004, $100,800 in cash was pledged as the initial margin
deposit for open financial futures contracts. In addition, 2,160 shares of
Valspar Corporation common stock valued at $107,244, 7,600 shares of
Lyondell Chemical Company common stock valued at $124,260 and $1,848,410 of
The AAL Money Market Fund were earmarked as collateral to cover open
financial futures contracts as follows:
Notional
Number of Expiration Principal Unrealized
Type Contracts Date Position Value Amount Loss
- -------------------------------------------------------------------------------------------------------------------------
S&P 400 Mini Futures 36 June 2004 Long $2,099,520 $2,176,750 $77,230
(e) The interest rate shown reflects the yield.
The accompanying notes to the financial statements
are an integral part of this schedule.
The AAL International Fund
Schedule of Investments as of April 30, 2004 (a)
Shares Common Stock (79.0%) Value
- -------------------------------------------------------------------------------------------------------------------------
Brazil (1.1%)
- -------------------------------------------------------------------------------------------------------------------------
15,401 Banco Itau Holding Financeira SA ADR(b,c) $610,496
58,682 Petroleo Brasileiro SA ADR 1,695,910
- -------------------------------------------------------------------------------------------------------------------------
Total Brazil 2,306,406
=========================================================================================================================
France (11.0%)
- -------------------------------------------------------------------------------------------------------------------------
61,569 Accor SA(b,c,d) 2,576,045
47,312 Bouygues SA(c,d) 1,605,216
45,761 Carrefour SA(c,d) 2,109,674
311,219 Electricidade de Portugal SA(d) 847,924
59,359 France Telecom SA(b,d) 1,419,123
21,724 L'Oreal SA(b,c,d) 1,629,019
20,114 LAFARGE SA(b,c,d) 1,665,744
29,355 Lagardere S.C.A.(b,c,d) 1,758,583
28,069 Pinault-Printemps-Redoute SA(b,c,d) 2,882,036
21,984 Total SA(b,d) 4,046,613
35,171 Valeo SA(b,c,d) 1,439,941
64,820 Vivendi Universal SA(b,d) 1,609,008
- -------------------------------------------------------------------------------------------------------------------------
Total France 23,588,926
=========================================================================================================================
Germany (2.8%)
- -------------------------------------------------------------------------------------------------------------------------
17,557 Adidas-Salomon AG(b,c,d) 2,015,206
13,900 Allianz AG(b,c,d) 1,460,405
40,060 Bayerische Motoren Werke AG(b,c,d) 1,715,209
14,067 Deutsche Bourse AG(b,c,d) 769,990
- -------------------------------------------------------------------------------------------------------------------------
Total Germany 5,960,810
=========================================================================================================================
Hong Kong (2.5%)
- -------------------------------------------------------------------------------------------------------------------------
337,000 Sun Hung Kai Properties, Ltd.(d) 2,871,206
389,000 Swire Pacific, Ltd.(b,d) 2,524,001
- -------------------------------------------------------------------------------------------------------------------------
Total Hong Kong 5,395,207
=========================================================================================================================
Italy (5.9%)
- -------------------------------------------------------------------------------------------------------------------------
1,004,965 Banca Intesa SPA(c,d) 3,303,904
220,900 Eni SPA(b,d) 4,487,775
193,832 Fiat SPA(b,c,d) 1,355,546
324,912 Mediaset SPA(b,c,d) 3,542,522
- -------------------------------------------------------------------------------------------------------------------------
Total Italy 12,689,747
=========================================================================================================================
Japan (16.0%)
- -------------------------------------------------------------------------------------------------------------------------
180,000 Bridgestone Corporation(b,d) 3,016,412
32,000 Canon, Inc.(b,d) 1,659,489
116,000 Daiwa House Industry Company, Ltd.(d) 1,285,009
125,900 Denso Corporation(b,d) 2,619,677
233,000 Matsushita Electric Industrial Company, Ltd.(b,d) 3,406,020
206 Millea Holdings, Inc.(d) 2,897,189
49,000 Misawa Homes Holdings, Inc.(b,d) 167,118
303,000 Mitsubishi Estate Company, Ltd.(d) 3,527,194
437 Mitsubishi Tokyo Financial Group, Inc.(d) 3,844,210
193,000 Mitsui Sumitomo Insurance Company(d) 1,793,583
172,400 Nissan Motor Company, Ltd.(d) 1,883,056
107,000 Nomura Holdings, Inc.(d) 1,717,828
21,900 ORIX Corporation(b,d) 2,294,648
90,000 Ricoh Company, Ltd.(b,d) 1,768,583
41,200 Shin-Etsu Chemical Company, Ltd.(d) 1,638,464
12,000 TDK Corporation(b,d) 840,852
- -------------------------------------------------------------------------------------------------------------------------
Total Japan 34,359,332
=========================================================================================================================
Malaysia (0.4%)
- -------------------------------------------------------------------------------------------------------------------------
149,000 Malayan Banking Berhad(d) 410,072
146,100 Resorts World Berhad(b,d) 381,917
- -------------------------------------------------------------------------------------------------------------------------
Total Malaysia 791,989
=========================================================================================================================
Mexico (2.0%)
- -------------------------------------------------------------------------------------------------------------------------
89,596 Cemex SA de CV ADR 2,638,602
19,947 Grupo Televisia SA ADR(b) 869,490
248,679 Wal-Mart de Mexico SA de CV 727,253
- -------------------------------------------------------------------------------------------------------------------------
Total Mexico 4,235,345
=========================================================================================================================
Netherlands (2.1%)
- -------------------------------------------------------------------------------------------------------------------------
34,886 Heineken NV(b,c,d) 1,465,647
112,883 VNU NV(c,d) 3,134,635
- -------------------------------------------------------------------------------------------------------------------------
Total Netherlands 4,600,282
=========================================================================================================================
Portugal (2.1%)
- -------------------------------------------------------------------------------------------------------------------------
364,906 Banco Comercial Portugues SA(d) 845,425
301,889 Portugal Telecom SGPS SA(d) 3,268,088
312,120 Sonae, S.G.P.S., SA(d) 341,790
- -------------------------------------------------------------------------------------------------------------------------
Total Portugal 4,455,303
=========================================================================================================================
Singapore (2.0%)
- -------------------------------------------------------------------------------------------------------------------------
201,000 DBS Group Holdings, Ltd.(b,d) 1,678,902
319,000 United Overseas Bank, Ltd.(b,c,d) 2,552,075
- -------------------------------------------------------------------------------------------------------------------------
Total Singapore 4,230,977
=========================================================================================================================
South Korea (3.4%)
- -------------------------------------------------------------------------------------------------------------------------
41,020 Daewoo Shipbuilding & Marine Engineering Company,
Ltd.(d) 413,390
19,870 Hyundai Motor Company, Ltd.(d) 751,344
39,746 Kookmin Bank ADR(b) 1,474,577
6,220 Samsung Electronics Company, Ltd.(d) 2,914,917
4,590 Shinsegae Company, Ltd.(d) 1,028,663
34,498 SK Telecom Company, Ltd. ADR(c) 696,860
- -------------------------------------------------------------------------------------------------------------------------
Total South Korea 7,279,751
=========================================================================================================================
Spain (4.8%)
- -------------------------------------------------------------------------------------------------------------------------
16,902 Acerinox SA(c,d) 868,508
131,830 Banco Bilbao Vizcaya Argentaria SA(d) 1,731,347
86,544 Iberdrola SA(d) 1,700,389
83,794 Repsol YPF SA(d) 1,753,366
282,327 Telefonica SA(b,d) 4,164,712
- -------------------------------------------------------------------------------------------------------------------------
Total Spain 10,218,322
=========================================================================================================================
Sweden (3.2%)
- -------------------------------------------------------------------------------------------------------------------------
26,105 Autoliv, Inc.(b,d) 1,100,720
532,708 Skandia Forsakrings AB(c,d) 2,064,790
624,065 Telefonaktiebolaget LM Ericsson(d) 1,662,695
57,037 Volvo AB(b,c,d) 1,948,462
- -------------------------------------------------------------------------------------------------------------------------
Total Sweden 6,776,667
=========================================================================================================================
Switzerland (4.0%)
- -------------------------------------------------------------------------------------------------------------------------
74,638 Compagnie Financiere Richemont AG(d) 1,905,318
69,391 Credit Suisse Group(b,d) 2,428,455
9,561 Nestle SA(c,d) 2,411,521
17,672 Roche Holding AG(c,d) 1,846,278
- -------------------------------------------------------------------------------------------------------------------------
Total Switzerland 8,591,572
=========================================================================================================================
Taiwan (1.2%)
- -------------------------------------------------------------------------------------------------------------------------
96,705 Cathay Financial Holding Company, Ltd.(b) 1,717,519
83,877 Taiwan Semiconductor Manufacturing Company, Ltd.
ADR(b) 799,348
- -------------------------------------------------------------------------------------------------------------------------
Total Taiwan 2,516,867
=========================================================================================================================
United Kingdom (14.5%)
- -------------------------------------------------------------------------------------------------------------------------
70,077 AstraZeneca plc(d) 3,290,798
545,373 BAE SYSTEMS plc(b,d) 2,017,851
129,779 Diageo plc(d) 1,735,849
171,215 HSBC Holdings plc(b,d) 2,440,732
143,868 Imperial Tobacco Group plc(b,d) 3,174,867
123,327 InterContinental Hotels Group plc(d) 1,151,803
472,121 Kingfisher plc(d) 2,360,856
85,341 Next plc(b,d) 2,099,776
223,269 Pearson plc(d) 2,595,250
203,103 Reed Elsevier plc(d) 1,881,161
156,301 SABMiller plc(d) 1,691,593
201,185 Smith & Nephew plc(b,d) 2,054,128
1,837,743 Vodafone Group plc(d) 4,444,607
- -------------------------------------------------------------------------------------------------------------------------
Total United Kingdom 30,939,271
- -------------------------------------------------------------------------------------------------------------------------
Total Common Stock (cost $155,319,681) 168,936,774
=========================================================================================================================
Interest Maturity
Shares Collateral Held for Securities Loaned (19.2%) Rate (e) Date Value
- -------------------------------------------------------------------------------------------------------------------------
41,184,857 State Street Navigator Securities Lending Prime 1.070% N/A $41,184,857
- -------------------------------------------------------------------------------------------------------------------------
Total Collateral Held for Securities Loaned (cost
$41,184,857) 41,184,857
=========================================================================================================================
Shares or
Principal Interest Maturity
Amount Short-Term Investments (1.8%) Rate (e) Date Value
- -------------------------------------------------------------------------------------------------------------------------
46,598 SSgA Money Market Fund 0.740% N/A $46,598
$3,900,000 Student Loan Marketing Association 0.800 5/3/2004 3,899,827
- -------------------------------------------------------------------------------------------------------------------------
Total Short-Term Investments (at amortized cost) 3,946,425
- -------------------------------------------------------------------------------------------------------------------------
Total Investments (cost $200,450,963) $214,068,056
=========================================================================================================================
(a) The categories of investments are shown as apercentage of total
investments.
(b) Non-income producing security.
(c) All or a portion of the security is on loan as discussed in item 2(L)
of the Notes to Financial Statements.
(d) Security is fair valued as discussed in the notes to the financial
statements.
(e) The interest rate shown reflects the yield, or for securities purchased
at a discount, the discount rate at the date of purchase.
The accompanying notes to the financial statements
are an integral part of this schedule.
The AAL Capital Growth Fund
Schedule of Investments as of April 30, 2004 (a)
Shares Common Stock (93.1%) Value
- -------------------------------------------------------------------------------------------------------------------------
Communications Services (2.3%)
- -------------------------------------------------------------------------------------------------------------------------
316,700 AT&T Wireless Services, Inc.(b) $4,373,627
41,400 CenturyTel, Inc.(c) 1,195,632
430,400 Nextel Communications, Inc.(b,c) 10,269,344
895,839 SBC Communications, Inc. 22,306,391
250,950 Sprint Corporation (FON Group)(c) 4,489,496
691,000 Verizon Communications, Inc. 26,078,340
- -------------------------------------------------------------------------------------------------------------------------
Total Communications Services 68,712,830
=========================================================================================================================
Consumer Discretionary (14.1%)
- -------------------------------------------------------------------------------------------------------------------------
272,700 Clear Channel Communications, Inc. 11,314,323
3,096,700 Comcast Corporation(b) 89,773,333
3,100,300 Cox Communications, Inc.(b,c) 101,348,807
139,500 Dollar General Corporation 2,617,020
429,900 Family Dollar Stores, Inc. 13,816,986
339,500 Gannett Company, Inc. 29,427,860
1,153,700 Harley-Davidson, Inc. 64,976,384
893,700 Home Depot, Inc. 31,449,303
97,400 Kohl's Corporation(b) 4,070,346
1,823,432 Liberty Media Corporation(b) 19,948,346
74,600 Nordstrom, Inc.(c) 2,657,998
342,540 Starwood Hotels & Resorts Worldwide, Inc. 13,629,667
680,808 Tiffany & Company 26,551,512
274,700 Tribune Company 13,152,636
- -------------------------------------------------------------------------------------------------------------------------
Total Consumer Discretionary 424,734,521
=========================================================================================================================
Consumer Staples (11.5%)
- -------------------------------------------------------------------------------------------------------------------------
599,250 Alberto-Culver Company 28,260,630
1,716,800 Altria Group, Inc. 95,076,384
46,650 Corn Products International, Inc. 1,982,625
641,400 General Mills, Inc. 31,268,250
1,514,500 Wal-Mart Stores, Inc. 86,326,500
3,006,800 Walgreen Company 103,674,464
- -------------------------------------------------------------------------------------------------------------------------
Total Consumer Staples 346,588,853
=========================================================================================================================
Energy (8.3%)
- -------------------------------------------------------------------------------------------------------------------------
382,356 Apache Corporation 16,009,246
449,300 Baker Hughes, Inc. 16,480,324
320,100 BJ Services Company(b) 14,244,450
166,900 Burlington Resources, Inc. 11,227,363
55,100 ChevronTexaco Corporation 5,041,650
144,600 ConocoPhillips Company 10,309,980
244,500 ENSCO International, Inc. 6,691,965
778,000 EOG Resources, Inc. 38,316,500
1,901,500 Exxon Mobil Corporation 80,908,825
302,500 Nabors Industries, Ltd.(b) 13,418,900
314,700 Noble Corporation(b) 11,694,252
216,600 Rowan Companies, Inc.(b,c) 4,830,180
226,100 Schlumberger, Ltd. 13,233,633
120,900 Smith International, Inc.(b,c) 6,619,275
- -------------------------------------------------------------------------------------------------------------------------
Total Energy 249,026,543
=========================================================================================================================
Financials (22.6%)
- -------------------------------------------------------------------------------------------------------------------------
781,400 AFLAC, Inc. 32,998,522
199,600 Ambac Financial Group, Inc. 13,772,400
1,240,200 American Express Company 60,707,790
1,429,552 American International Group, Inc. 102,427,401
624,900 Bank of America Corporation 50,298,201
384,400 Bank One Corporation 18,977,828
509,300 Charles Schwab Corporation 5,240,697
1,826,048 Citigroup, Inc. 87,814,648
104,199 Countrywide Financial Corporation 6,179,001
705,000 Federal National Mortgage Corporation 48,447,600
1,492,740 J.P. Morgan Chase & Company 56,127,024
91,000 Lehman Brothers Holdings, Inc. 6,679,400
163,600 Marsh & McLennan Companies, Inc. 7,378,360
1,482,239 MBNA Corporation 36,136,987
231,700 Merrill Lynch & Company, Inc. 12,565,091
352,900 MetLife, Inc. 12,175,050
549,900 Morgan Stanley and Company 28,259,361
172,700 North Fork Bancorporation, Inc.(c) 6,410,624
194,600 Northern Trust Corporation 8,227,688
218,000 Progressive Corporation 19,079,360
653,300 Providian Financial Corporation(b,c) 7,924,529
398,600 State Street Corporation 19,451,680
584,500 Wells Fargo & Company 33,000,870
- -------------------------------------------------------------------------------------------------------------------------
Total Financials 680,280,112
=========================================================================================================================
Health Care (10.9%)
- -------------------------------------------------------------------------------------------------------------------------
275,100 Abbott Laboratories 12,109,902
417,900 Amgen, Inc.(b) 23,515,233
109,350 Barr Pharmaceuticals, Inc. 4,529,277
476,600 Boston Scientific Corporation 19,631,154
301,600 Bristol-Myers Squibb Company 7,570,160
117,100 Cardinal Health, Inc. 8,577,575
203,600 Eli Lilly and Company 15,027,716
905,200 Johnson & Johnson 48,907,956
187,689 Medco Health Solutions, Inc.(b) 6,644,191
332,300 Medtronic, Inc. 16,767,858
269,200 Merck & Company, Inc. 12,652,400
401,700 Mylan Laboratories, Inc. 9,202,947
2,631,600 Pfizer, Inc. 94,106,016
114,900 St. Jude Medical, Inc.(b) 8,762,274
150,300 Watson Pharmaceuticals, Inc.(b,c) 5,352,183
313,000 WellPoint Health Networks, Inc.(b) 34,958,970
- -------------------------------------------------------------------------------------------------------------------------
Total Health Care 328,315,812
=========================================================================================================================
Industrials (8.9%)
- -------------------------------------------------------------------------------------------------------------------------
212,100 3M Company 18,342,408
613,500 American Power Conversion Corporation(c) 11,447,910
195,100 Caterpillar, Inc. 15,165,123
780,300 Cendant Corporation 18,477,504
89,300 CNF, Inc. 3,264,808
219,600 Dover Corporation 8,790,588
108,400 Emerson Electric Company 6,527,848
88,900 Fastenal Company(c) 4,877,943
215,900 General Dynamics Corporation 20,212,558
1,791,700 General Electric Company 53,661,415
635,700 Herman Miller, Inc.(c) 16,706,196
120,900 Honeywell International, Inc. 4,180,722
86,100 Illinois Tool Works, Inc. 7,422,681
768,100 Norfolk Southern Corporation 18,296,142
123,100 Northrop Grumman Corporation 12,217,675
1,068,300 Tyco International, Ltd. 29,324,835
231,100 United Technologies Corporation 19,934,686
- -------------------------------------------------------------------------------------------------------------------------
Total Industrials 268,851,042
=========================================================================================================================
Information Technology (14.1%)
- -------------------------------------------------------------------------------------------------------------------------
527,900 Applied Materials, Inc.(b) 9,623,617
213,900 Arrow Electronics, Inc.(b,c) 5,407,392
2,320,800 Cisco Systems, Inc.(b) 48,435,096
313,100 Computer Sciences Corporation(b) 12,808,921
866,900 Dell, Inc.(b) 30,090,099
703,000 EMC Corporation(b) 7,845,480
1,299,032 First Data Corporation 58,963,062
298,380 Global Payments, Inc.(c) 14,316,272
2,154,200 Intel Corporation 55,427,566
614,300 International Business Machines Corporation 54,162,831
3,590,900 Microsoft Corporation 93,255,673
1,829,500 Oracle Corporation(b) 20,526,990
581,800 Texas Instruments, Inc. 14,603,180
- -------------------------------------------------------------------------------------------------------------------------
Total Information Technology 425,466,179
=========================================================================================================================
Utilities (0.4%)
- -------------------------------------------------------------------------------------------------------------------------
241,200 Entergy Corporation 13,169,520
- -------------------------------------------------------------------------------------------------------------------------
Total Utilities 13,169,520
- -------------------------------------------------------------------------------------------------------------------------
Total Common Stock (cost $1,981,760,828) 2,805,145,412
=========================================================================================================================
Shares or
Principal Interest Maturity
Amount Collateral Held for Securities Loaned (1.5%) Rate (d) Date Value
- -------------------------------------------------------------------------------------------------------------------------
$7,574,391 BNP Paribas Letter of Credit 0.150% 10/21/2004 $7,574,391
36,357,645 State Street Navigator Securities Lending Prime
Portfolio 1.070 N/A 36,357,644
- -------------------------------------------------------------------------------------------------------------------------
Total Collateral Held for Securities Loaned (cost
$43,932,035) 43,932,035
=========================================================================================================================
Shares or
Principal Interest Maturity
Amount Short-Term Investments (5.4%) Rate (d) Date Value
- -------------------------------------------------------------------------------------------------------------------------
$25,000,000 American General Finance Corporation 1.020% 5/3/2004 $24,998,583
25,000,000 Cargill Global Funding plc 1.020 5/3/2004 24,998,583
10,000,000 Falcon Asset Securitization Corporation 1.040 5/13/2004 9,996,533
22,000,000 Federal National Mortgage Association(e) 0.990 5/17/2004 21,998,843
15,000,000 Goldman Sachs Group, Inc. 1.020 5/5/2004 14,998,300
12,500,000 Goldman Sachs Group, Inc. 1.020 5/6/2004 12,498,229
10,000,000 Marsh & McLennan USA, Inc. 1.010 5/4/2004 9,999,158
10,000,000 Sheffield Receivables Corporation 1.030 5/3/2004 9,999,428
11,400,000 Sheffield Receivables Corporation 1.030 5/4/2004 11,399,022
11,348,795 The AAL Money Market Fund 0.530 N/A 11,348,795
7,796,000 Torchmark Corporation 1.050 5/7/2004 7,794,636
2,300,000 Toyota Credit Puerto Rico 1.041 5/10/2004 2,299,402
- -------------------------------------------------------------------------------------------------------------------------
Total Short-Term Investments (at amortized cost) 162,329,512
- -------------------------------------------------------------------------------------------------------------------------
Total Investments (cost $2,188,022,375) $3,011,406,959
=========================================================================================================================
(a) The categories of investments are shown as apercentage of total
investments.
(b) Non-income producing security.
(c) All or a portion of the security is on loan as discussed in item 2(L)
of the Notes to Financial Statements.
(d) The interest rate shown reflects the yield or, for securities purchased
at a discount, the discount rate at the date of purchase.
(e) Denotes variable rate obligations for which the current yield and next
scheduled reset date are shown.
The accompanying notes to the financial statements
are an integral part of this schedule.
AAL Large Company Index Fund
Schedule of Investments as of April 30, 2004(a)
Shares Common Stock (93.7%) Value
- -------------------------------------------------------------------------------------------------------------------------
Communications Services (3.3%)
- -------------------------------------------------------------------------------------------------------------------------
857 ALLTEL Corporation $43,141
2,087 AT&T Corporation 35,792
7,160 AT&T Wireless Services, Inc.(b) 98,880
4,854 BellSouth Corporation 125,282
404 CenturyTel, Inc. 11,668
807 Citizens Communications Company(b,c) 10,523
2,878 Nextel Communications, Inc.(b,c) 68,669
4,636 Qwest Communications International, Inc.(b) 18,637
8,798 SBC Communications, Inc. 219,070
3,688 Sprint Corporation (FON Group) 65,969
7,274 Verizon Communications, Inc. 274,521
- -------------------------------------------------------------------------------------------------------------------------
Total Communications Services 972,152
=========================================================================================================================
Consumer Discretionary (10.7%)
- -------------------------------------------------------------------------------------------------------------------------
708 Autonation, Inc.(b) 12,050
152 AutoZone, Inc.(b) 13,311
757 Bed Bath & Beyond, Inc.(b) 28,100
861 Best Buy Company, Inc. 46,709
502 Big Lots, Inc.(b) 7,108
301 Black & Decker Corporation 17,413
401 Boise Cascade Corporation 13,526
302 Brunswick Corporation 12,415
1,665 Carnival Corporation 71,046
302 Centex Corporation 14,481
554 Circuit City Stores, Inc. (Circuit City Group) 6,471
1,615 Clear Channel Communications, Inc. 67,006
5,916 Comcast Corporation(b) 178,072
251 Cooper Tire & Rubber Company 5,369
404 Dana Corporation 8,145
480 Darden Restaurants, Inc. 10,877
1,415 Delphi Corporation 14,433
301 Dillard's, Inc.(c) 5,066
871 Dollar General Corporation 16,340
400 Dow Jones & Company, Inc. 18,436
758 Eastman Kodak Company 19,549
1,716 eBay, Inc. 136,971
505 Family Dollar Stores, Inc. 16,231
503 Federated Department Stores, Inc. 24,647
4,854 Ford Motor Company 74,557
454 Fortune Brands, Inc. 34,618
704 Gannett Company, Inc. 61,023
2,374 Gap, Inc. 52,252
1,465 General Motors Corporation 69,470
654 Genuine Parts Company 23,413
603 Goodyear Tire & Rubber Company(b,c) 5,252
708 Harley-Davidson, Inc. 39,875
402 Harrah's Entertainment, Inc. 21,378
604 Hasbro, Inc. 11,410
961 Hilton Hotels Corporation 16,808
5,967 Home Depot, Inc. 209,979
908 International Game Technology 34,268
1,060 Interpublic Group of Companies, Inc.(b) 16,631
656 J.C. Penney Company, Inc. 22,212
504 Johnson Controls, Inc. 27,649
354 Jones Apparel Group, Inc. 12,956
200 KB Home 13,786
401 Knight Ridder, Inc. 31,053
858 Kohl's Corporation(b) 35,856
604 Leggett & Platt, Inc. 13,650
1,264 Limited Brands, Inc. 26,089
303 Liz Claiborne, Inc. 10,635
2,074 Lowe's Companies, Inc. 107,972
555 Marriott International, Inc. 26,174
1,062 Mattel, Inc. 18,012
756 May Department Stores Company 23,285
250 Maytag Corporation 6,975
3,285 McDonald's Corporation 89,451
604 McGraw-Hill Companies, Inc. 47,631
200 Meredith Corporation 10,188
454 New York Times Company 20,798
656 Newell Rubbermaid, Inc. 15,508
657 NIKE, Inc.(c) 47,271
352 Nordstrom, Inc. 12,542
807 Office Depot, Inc.(b) 14,131
503 Omnicom Group, Inc. 39,994
302 Pulte Homes, Inc. 14,849
503 RadioShack Corporation 15,472
200 Reebok International, Ltd. 7,276
658 Sears, Roebuck and Company 26,353
553 Sherwin-Williams Company 21,042
200 Snap-On, Inc. 6,756
401 Stanley Works(c) 17,047
1,312 Staples, Inc. 33,797
1,010 Starbucks Corporation(b) 39,249
506 Starwood Hotels & Resorts Worldwide, Inc. 20,134
2,328 Target Corporation 100,965
404 Tiffany & Company 15,756
12,086 Time Warner, Inc.(b) 203,287
1,316 TJX Companies, Inc. 32,334
554 Toys 'R' Us, Inc.(b) 8,559
806 Tribune Company 38,591
806 Univision Communications, Inc.(b) 27,283
302 VF Corporation 13,940
4,623 Viacom, Inc. 178,679
529 Visteon Corporation 5,745
5,411 Walt Disney Company 124,615
402 Wendy's International, Inc. 15,678
251 Whirlpool Corporation 16,443
759 Yum! Brands, Inc.(b) 29,442
- -------------------------------------------------------------------------------------------------------------------------
Total Consumer Discretionary 3,121,816
=========================================================================================================================
Consumer Staples (10.9%)
- -------------------------------------------------------------------------------------------------------------------------
250 Adolph Coors Company 16,428
301 Alberto-Culver Company 14,195
1,059 Albertson's, Inc.(c) 24,738
5,409 Altria Group, Inc. 299,550
2,125 Anheuser-Busch Companies, Inc. 108,885
1,638 Archer-Daniels-Midland Company 28,763
556 Avon Products, Inc. 46,704
500 Brown-Foreman Corporation(c) 23,430
1,060 Campbell Soup Company 29,288
605 Clorox Company 31,327
6,423 Coca-Cola Company 324,811
1,211 Coca-Cola Enterprises, Inc. 32,697
1,365 Colgate-Palmolive Company 79,006
1,412 ConAgra Foods, Inc. 40,793
1,161 Costco Wholesale Corporation(b) 43,479
1,010 CVS Corporation 39,016
960 General Mills, Inc. 46,800
2,680 Gillette Company 109,666
959 H.J. Heinz Company 36,624
402 Hershey Foods Corporation 35,734
1,060 Kellogg Company 45,474
1,264 Kimberly-Clark Corporation 82,729
1,972 Kroger Company(b) 34,510
504 McCormick & Company, Inc. 17,217
608 Pepsi Bottling Group, Inc. 17,796
4,497 PepsiCo, Inc. 245,042
3,437 Procter & Gamble Company 363,463
202 R.J. Reynolds Tobacco Holdings, Inc. 13,084
1,161 Safeway, Inc.(b) 26,645
2,022 Sara Lee Corporation 46,668
552 SUPERVALU, Inc. 16,996
1,668 SYSCO Corporation 63,801
503 UST, Inc. 18,717
11,482 Wal-Mart Stores, Inc. 654,474
2,629 Walgreen Company 90,648
605 William Wrigley Jr. Company 37,328
403 Winn-Dixie Stores, Inc.(c) 3,071
- -------------------------------------------------------------------------------------------------------------------------
Total Consumer Staples 3,189,597
=========================================================================================================================
Energy (5.8%)
- -------------------------------------------------------------------------------------------------------------------------
251 Amerada Hess Corporation 17,854
620 Anadarko Petroleum Corporation 33,220
846 Apache Corporation 35,422
351 Ashland, Inc. 16,813
908 Baker Hughes, Inc. 33,305
455 BJ Services Company(b) 20,248
455 Burlington Resources, Inc. 30,608
2,786 ChevronTexaco Corporation 254,919
1,762 ConocoPhillips Company 125,631
556 Devon Energy Corporation 34,027
303 EOG Resources, Inc. 14,923
17,505 Exxon Mobil Corporation 744,838
1,162 Halliburton Company 34,628
251 Kerr-McGee Corporation 12,281
807 Marathon Oil Corporation 27,083
553 Nabors Industries, Ltd.(b) 24,531
504 Noble Corporation(b) 18,729
961 Occidental Petroleum Corporation 45,359
301 Rowan Companies, Inc.(b) 6,712
1,515 Schlumberger, Ltd. 88,673
301 Sunoco, Inc. 18,933
857 Transocean, Inc.(b) 23,799
656 Unocal Corporation 23,642
300 Valero Energy Corporation 19,128
- -------------------------------------------------------------------------------------------------------------------------
Total Energy 1,705,306
=========================================================================================================================
Financials (19.2%)
- -------------------------------------------------------------------------------------------------------------------------
657 ACE, Ltd. 28,803
1,363 AFLAC, Inc. 57,559
1,870 Allstate Corporation 85,833
303 Ambac Financial Group, Inc. 20,907
3,388 American Express Company 165,843
6,927 American International Group, Inc. 496,320
959 AmSouth Bancorporation 21,117
807 Aon Corporation 21,030
353 Apartment Investment & Management Company(c) 9,944
5,467 Bank of America Corporation 440,039
1,972 Bank of New York Company, Inc. 57,464
2,934 Bank One Corporation 144,852
1,412 BB&T Corporation 48,700
352 Bear Stearns Companies, Inc. 28,209
605 Capital One Financial Corporation 39,646
3,587 Charles Schwab Corporation 36,910
614 Charter One Financial, Inc. 20,489
453 Chubb Corporation 31,257
529 Cincinnati Financial Corporation 21,692
13,660 Citigroup, Inc. 656,909
553 Comerica, Inc. 28,551
703 Countrywide Financial Corporation 41,688
1,000 E*TRADE Group, Inc.(b) 11,360
1,012 Equity Office Properties Trust 25,472
858 Equity Residential REIT 23,561
1,819 Federal Home Loan Mortgage Corporation 106,230
2,528 Federal National Mortgage Corporation 173,724
303 Federated Investors, Inc. 8,908
1,507 Fifth Third Bancorp 80,866
454 First Horizon National Corporation 19,958
655 Franklin Resources, Inc. 35,914
453 Golden West Financial Corporation 47,615
1,213 Goldman Sachs Group, Inc. 117,054
756 Hartford Financial Services Group, Inc. 46,176
626 Huntington Bancshares, Inc.(c) 13,396
5,374 J.P. Morgan Chase & Company 202,062
806 Janus Capital Group, Inc. 12,251
430 Jefferson-Pilot Corporation 21,324
1,210 KeyCorp 35,937
705 Lehman Brothers Holdings, Inc. 51,747
653 Lincoln National Corporation 29,307
454 Loews Corporation 26,337
500 M&T Bank Corporation 42,500
1,366 Marsh & McLennan Companies, Inc. 61,607
606 Marshall & Ilsley Corporation 22,283
429 MBIA, Inc. 25,264
3,315 MBNA Corporation 80,820
1,061 Mellon Financial Corporation 31,448
2,578 Merrill Lynch & Company, Inc. 139,805
1,970 MetLife, Inc. 67,965
251 MGIC Investment Corporation 18,479
353 Moody's Corporation 22,772
2,831 Morgan Stanley and Company 145,485
1,616 National City Corporation 56,027
505 North Fork Bancorporation, Inc.(c) 18,746
604 Northern Trust Corporation 25,537
556 Plum Creek Timber Company, Inc. 16,435
755 PNC Financial Services Group, Inc. 40,090
860 Principal Financial Group, Inc. 30,358
506 Progressive Corporation 44,285
500 ProLogis Trust 14,710
706 Providian Financial Corporation(b) 8,564
1,367 Prudential Financial, Inc. 60,066
604 Regions Financial Corporation 20,965
402 SAFECO Corporation 17,604
555 Simon Property Group, Inc. 26,757
1,162 SLM Corporation 44,516
1,060 SouthTrust Corporation 32,945
1,753 St. Paul Travelers Companies, Inc. 71,295
808 State Street Corporation 39,430
656 SunTrust Banks, Inc.(c) 44,641
808 Synovus Financial Corporation 19,287
351 T. Rowe Price Group, Inc. 17,999
452 Torchmark Corporation 23,522
5,069 U.S. Bancorp 129,969
531 Union Planters Corporation 14,762
757 UnumProvident Corporation(c) 11,771
3,437 Wachovia Corporation 157,243
2,378 Washington Mutual, Inc. 93,669
4,448 Wells Fargo & Company 251,134
304 XL Capital, Ltd. 23,210
252 Zions Bancorporation 14,243
- -------------------------------------------------------------------------------------------------------------------------
Total Financials 5,621,169
=========================================================================================================================
Health Care (12.7%)
- -------------------------------------------------------------------------------------------------------------------------
4,096 Abbott Laboratories 180,306
353 Aetna, Inc. 29,211
303 Allergan, Inc. 26,679
202 AmerisourceBergen Corporation 11,694
3,407 Amgen, Inc.(b) 191,712
305 Anthem, Inc.(b) 27,017
654 Applera Corporation (Applied Biosystems Group) 12,145
301 Bausch & Lomb, Inc. 18,912
1,569 Baxter International, Inc. 49,659
606 Becton, Dickinson and Company 30,633
805 Biogen Idec, Inc.(b) 47,495
644 Biomet, Inc. 25,438
2,122 Boston Scientific Corporation 87,405
5,156 Bristol-Myers Squibb Company 129,416
201 C.R. Bard, Inc.(c) 21,360
1,137 Cardinal Health, Inc. 83,285
1,200 Caremark Rx, Inc.(b) 40,620
404 Chiron Corporation(b) 18,746
304 CIGNA Corporation 19,611
2,983 Eli Lilly and Company 220,175
200 Express Scripts, Inc.(b) 15,468
912 Forest Laboratories, Inc.(b) 58,806
506 Genzyme Corporation(b) 22,041
806 Guidant Corporation 50,786
1,263 HCA, Inc. 51,316
557 Health Management Associates, Inc. 12,883
454 Humana, Inc.(b) 7,396
654 IMS Health, Inc. 16,514
7,835 Johnson & Johnson 423,325
573 King Pharmaceuticals, Inc.(b) 9,884
351 Manor Care, Inc. 11,386
756 McKesson Corporation 24,842
641 Medco Health Solutions, Inc.(b) 22,691
607 MedImmune, Inc.(b) 14,714
3,134 Medtronic, Inc. 158,142
5,917 Merck & Company, Inc. 278,099
150 Millipore Corporation(b) 7,864
700 Mylan Laboratories, Inc. 16,037
20,281 Pfizer, Inc. 725,249
203 Quest Diagnostics, Inc. 17,123
3,843 Schering-Plough Corporation 64,293
456 St. Jude Medical, Inc.(b) 34,775
454 Stryker Corporation(c) 44,914
1,190 Tenet Healthcare Corporation(b) 13,994
1,616 UnitedHealth Group, Inc. 99,352
301 Watson Pharmaceuticals, Inc.(b) 10,719
355 WellPoint Health Networks, Inc.(b) 39,650
3,539 Wyeth Corporation 134,730
639 Zimmer Holdings, Inc.(b) 51,024
- -------------------------------------------------------------------------------------------------------------------------
Total Health Care 3,709,536
=========================================================================================================================
Industrials (10.1%)
- -------------------------------------------------------------------------------------------------------------------------
2,024 3M Company 175,036
754 Allied Waste Industries, Inc.(b) 9,493
505 American Power Conversion Corporation(c) 9,423
152 American Standard Companies, Inc.(b) 15,989
455 Apollo Group, Inc.(b) 41,350
302 Avery Dennison Corporation(c) 19,397
2,174 Boeing Company 92,808
1,058 Burlington Northern Santa Fe Corporation 34,597
859 Caterpillar, Inc. 66,770
2,629 Cendant Corporation 62,255
405 Cintas Corporation 18,209
252 Cooper Industries, Ltd. 13,837
200 Crane Company 6,162
554 CSX Corporation 17,041
150 Cummins, Inc.(c) 8,972
352 Danaher Corporation(c) 32,567
555 Deere & Company 37,762
502 Delta Air Lines, Inc.(c) 3,122
201 Deluxe Corporation(c) 8,303
554 Dover Corporation 22,177
504 Eaton Corporation 29,928
1,061 Emerson Electric Company 63,893
503 Equifax, Inc. 12,329
707 FedEx Corporation 50,840
302 Fluor Corporation 11,524
454 General Dynamics Corporation 42,503
27,050 General Electric Company 810,138
401 Goodrich Corporation 11,545
352 Grainger (W.W.), Inc.(c) 18,445
455 H&R Block, Inc. 20,525
2,224 Honeywell International, Inc. 76,906
807 Illinois Tool Works, Inc. 69,571
404 Ingersoll-Rand Company 26,078
252 ITT Industries, Inc. 19,981
1,162 Lockheed Martin Corporation 55,427
1,161 Masco Corporation 32,520
301 Monster Worldwide, Inc.(b) 7,709
250 Navistar International Corporation(b) 11,288
1,110 Norfolk Southern Corporation 26,440
473 Northrop Grumman Corporation 46,945
443 PACCAR, Inc. 25,012
351 Pall Corporation 8,347
352 Parker-Hannifin Corporation 19,462
755 Pitney Bowes, Inc. 33,031
251 Power-One, Inc.(b,c) 2,159
701 R.R. Donnelley & Sons Company 20,623
1,059 Raytheon Company 34,163
405 Robert Half International, Inc.(b) 11,044
554 Rockwell Automation, Inc. 18,110
454 Rockwell Collins, Inc. 14,642
300 Ryder System, Inc. 11,037
2,095 Southwest Airlines Company 29,917
302 Textron, Inc. 16,664
200 Thomas & Betts Corporation 4,808
5,261 Tyco International, Ltd. 144,414
656 Union Pacific Corporation 38,658
2,984 United Parcel Service, Inc. 209,328
1,311 United Technologies Corporation 113,087
1,464 Waste Management, Inc. 41,578
- -------------------------------------------------------------------------------------------------------------------------
Total Industrials 2,935,889
=========================================================================================================================
Information Technology (15.4%)
- -------------------------------------------------------------------------------------------------------------------------
2,172 ADC Telecommunications, Inc.(b,c) 5,430
555 Adobe Systems, Inc.(c) 22,944
907 Advanced Micro Devices, Inc.(b) 12,898
400 Affiliated Computer Services, Inc.(b) 19,400
1,251 Agilent Technologies, Inc.(b) 33,790
959 Altera Corporation(b) 19,190
910 Analog Devices, Inc. 38,766
451 Andrew Corporation(b) 7,644
910 Apple Computer, Inc.(b) 23,414
4,402 Applied Materials, Inc.(b) 80,248
858 Applied Micro Circuits Corporation(b) 3,784
302 Autodesk, Inc. 10,117
1,565 Automatic Data Processing, Inc. 68,563
1,118 Avaya, Inc.(b) 15,294
507 BMC Software, Inc.(b) 8,771
755 Broadcom Corporation(b) 28,509
1,260 CIENA Corporation(b) 5,216
18,314 Cisco Systems, Inc.(b) 382,213
503 Citrix Systems, Inc.(b) 9,582
1,465 Computer Associates International, Inc. 39,277
404 Computer Sciences Corporation(b) 16,528
1,059 Compuware Corporation(b) 8,101
554 Comverse Technology, Inc.(b) 9,063
504 Convergys Corporation(b) 7,318
3,533 Corning, Inc.(b) 38,969
6,776 Dell, Inc.(b) 235,195
708 Electronic Arts, Inc. 35,839
1,212 Electronic Data Systems Corporation 22,167
6,415 EMC Corporation(b) 71,591
2,365 First Data Corporation 107,347
480 Fiserv, Inc.(b) 17,549
1,057 Gateway, Inc.(b) 5,095
8,107 Hewlett-Packard Company 159,708
17,149 Intel Corporation 441,244
4,548 International Business Machines Corporation 400,997
455 Intuit, Inc.(b) 19,324
505 Jabil Circuit, Inc.(b) 13,327
3,741 JDS Uniphase Corporation(b) 11,373
504 KLA-Tencor Corporation(b) 21,002
251 Lexmark International, Inc.(b) 22,705
857 Linear Technology Corporation 30,535
1,008 LSI Logic Corporation(b) 7,500
11,316 Lucent Technologies, Inc.(b,c) 38,135
859 Maxim Integrated Products, Inc. 39,505
301 Mercury Interactive Corporation(b) 12,808
1,566 Micron Technology, Inc.(b) 21,329
28,725 Microsoft Corporation 745,988
567 Molex, Inc. 16,885
6,151 Motorola, Inc. 112,256
454 National Semiconductor Corporation(b) 18,519
351 NCR Corporation(b) 15,686
908 Network Appliance, Inc.(b) 16,907
1,009 Novell, Inc.(b) 9,727
453 Novellus Systems, Inc.(b) 13,119
455 NVIDIA Corporation(b) 9,346
13,857 Oracle Corporation(b) 155,476
806 Parametric Technology Corporation(b) 3,691
985 Paychex, Inc. 36,721
907 PeopleSoft, Inc.(b) 15,310
352 PerkinElmer, Inc. 6,776
604 PMC-Sierra, Inc.(b) 7,339
351 QLogic Corporation(b) 9,473
2,071 QUALCOMM, Inc. 129,355
489 Sabre Holdings Corporation 11,536
1,313 Sanmina-SCI Corporation(b) 13,156
353 Scientific-Atlanta, Inc. 11,434
1,262 Siebel Systems, Inc.(b) 12,973
2,172 Solectron Corporation(b) 10,643
8,696 Sun Microsystems, Inc.(b) 33,914
708 SunGard Data Systems, Inc.(b) 18,458
810 Symantec Corporation 36,490
630 Symbol Technologies, Inc. 7,560
301 Tektronix, Inc. 8,910
1,160 Tellabs, Inc.(b) 10,127
554 Teradyne, Inc.(b) 11,291
4,598 Texas Instruments, Inc. 115,410
554 Thermo Electron Corporation(b) 16,177
857 Unisys Corporation(b) 11,167
1,060 VERITAS Software Corporation(b) 28,270
354 Waters Corporation(b) 15,275
2,071 Xerox Corporation(b) 27,814
906 Xilinx, Inc.(b) 30,469
1,764 Yahoo!, Inc.(b) 89,011
- -------------------------------------------------------------------------------------------------------------------------
Total Information Technology 4,491,963
=========================================================================================================================
Materials (2.8%)
- -------------------------------------------------------------------------------------------------------------------------
556 Air Products and Chemicals, Inc. 27,694
2,286 Alcoa, Inc. 70,294
251 Allegheny Technologies, Inc. 2,565
101 Ball Corporation 6,666
302 Bemis Company, Inc. 8,157
2,418 Dow Chemical Company 95,970
2,629 E.I. du Pont de Nemours and Company 112,916
301 Eastman Chemical Company 12,814
804 Ecolab, Inc. 23,959
452 Engelhard Corporation 13,126
503 Freeport-McMoRan Copper & Gold, Inc. 15,342
608 Georgia-Pacific Corporation 21,341
151 Great Lakes Chemical Corporation 3,793
352 Hercules, Inc.(b) 3,911
351 International Flavors and Fragrances, Inc. 12,724
1,219 International Paper Company 49,150
351 Louisiana-Pacific Corporation 8,280
696 Meadwestvaco Corporation 18,200
623 Monsanto Company 21,550
1,060 Newmont Mining Corporation 39,644
201 Nucor Corporation 11,939
554 Pactiv Corporation(b) 12,714
201 Phelps Dodge Corporation(b) 13,232
504 PPG Industries, Inc. 29,892
808 Praxair, Inc. 29,532
506 Rohm and Haas Company 19,623
201 Sealed Air Corporation(b) 9,865
351 Sigma-Aldrich Corporation 19,881
301 Temple-Inland, Inc.(c) 18,593
251 United States Steel Corporation 7,186
451 Vulcan Materials Company 20,854
605 Weyerhaeuser Company 35,816
401 Worthington Industries, Inc. 7,238
- -------------------------------------------------------------------------------------------------------------------------
Total Materials 804,461
=========================================================================================================================
Utilities (2.8%)
- -------------------------------------------------------------------------------------------------------------------------
1,664 AES Corporation(b) 14,427
352 Allegheny Energy, Inc.(b,c) 4,851
503 Ameren Corporation 21,991
1,029 American Electric Power Company, Inc. 31,323
1,059 Calpine Corporation(b,c) 4,596
906 CenterPoint Energy, Inc. 9,776
503 CINergy Corporation 19,084
502 CMS Energy Corporation(b,c) 4,172
757 Consolidated Edison, Inc.(c) 31,196
603 Constellation Energy Group, Inc. 23,203
829 Dominion Resources, Inc. 52,898
503 DTE Energy Company(c) 19,627
2,324 Duke Energy Corporation 48,943
1,009 Dynegy, Inc.(c) 3,996
858 Edison International, Inc.(c) 20,077
1,675 El Paso Corporation 11,742
706 Entergy Corporation 38,548
782 Exelon Corporation 52,347
858 FirstEnergy Corporation 33,548
553 FPL Group, Inc. 35,182
454 KeySpan Corporation 16,412
453 Kinder Morgan, Inc. 27,275
150 Nicor, Inc.(c) 5,098
775 NiSource, Inc. 15,624
1,060 Pacific Gas & Electric Company(b) 29,171
150 Peoples Energy Corporation(c) 6,270
301 Pinnacle West Capital Corporation 11,757
503 PPL Corporation 21,554
682 Progress Energy, Inc. 29,169
706 Public Service Enterprise Group, Inc. 30,287
659 Sempra Energy 20,923
1,870 Southern Company 53,781
604 TECO Energy, Inc. 7,689
857 TXU Corporation 29,258
1,363 Williams Companies, Inc. 14,039
1,114 Xcel Energy, Inc.(c) 18,637
- -------------------------------------------------------------------------------------------------------------------------
Total Utilities 818,471
- -------------------------------------------------------------------------------------------------------------------------
Total Common Stock (cost $27,796,120) 27,370,360
=========================================================================================================================
Shares or
Principal Interest Maturity
Amount Collateral Held for Securities Loaned (2.0%) Rate (d) Date Value
- -------------------------------------------------------------------------------------------------------------------------
$68,621 BNP Paribas Letter of Credit 0.150% 10/21/2004 $68,620
519,594 State Street Navigator Securities Lending Prime
Portfolio 1.070 N/A 519,594
- -------------------------------------------------------------------------------------------------------------------------
Total Collateral Held for Securities Loaned (cost
$588,214) 588,214
=========================================================================================================================
Interest Maturity
Shares Short-Term Investments (4.3%) Rate (d) Date Value
- -------------------------------------------------------------------------------------------------------------------------
1,258,720 The AAL Money Market Fund(e) 0.530% N/A $1,258,720
- -------------------------------------------------------------------------------------------------------------------------
Total Short-Term Investments (at amortized cost) 1,258,720
- -------------------------------------------------------------------------------------------------------------------------
Total Investments (cost $29,643,054) $29,217,294
=========================================================================================================================
(a) The categories of investments are shown as apercentage of total
investments.
(b) Non-income producing security.
(c) All or a portion of the security is on loan as discussed in item 2(L)
of the Notes to Financial Statements.
(d) The interest rate shown reflects the yield.
(e) At April 30, 2004, $60,800 in cash was pledged as the initial margin
deposit for open financial futures contracts. In addition, $1,258,720 of
The AAL Money Market Fund was earmarked as collateral to cover open
financial futures contracts as follows:
Notional
Number of Expiration Principal Unrealized
Contracts Date Position Value Amount Loss
- -------------------------------------------------------------------------------------------------------------------------
S&P 500 Mini Futures 23 June 2004 Long $1,272,015 $1,286,530 $14,515
The accompanying notes to the financial statements
are an integral part of this schedule.
The AAL Large Company Index Fund II
Schedule of Investments as of April 30, 2004(a)
Shares Common Stock (93.2%) Value
- -------------------------------------------------------------------------------------------------------------------------
Communications Services (3.3%)
- -------------------------------------------------------------------------------------------------------------------------
1,700 ALLTEL Corporation $85,578
4,260 AT&T Corporation 73,059
14,745 AT&T Wireless Services, Inc.(b) 203,628
9,900 BellSouth Corporation 255,519
800 CenturyTel, Inc. 23,104
1,600 Citizens Communications Company(b,c) 20,864
5,900 Nextel Communications, Inc.(b) 140,774
9,600 Qwest Communications International, Inc.(b) 38,592
17,900 SBC Communications, Inc. 445,710
7,700 Sprint Corporation (FON Group)(c) 137,753
15,000 Verizon Communications, Inc. 566,100
- -------------------------------------------------------------------------------------------------------------------------
Total Communications Services 1,990,681
=========================================================================================================================
Consumer Discretionary (10.5%)
- -------------------------------------------------------------------------------------------------------------------------
1,400 Autonation, Inc.(b) 23,828
400 AutoZone, Inc.(b) 35,028
1,600 Bed Bath & Beyond, Inc.(b) 59,392
1,750 Best Buy Company, Inc. 94,938
800 Big Lots, Inc.(b) 11,328
600 Black & Decker Corporation 34,710
500 Boise Cascade Corporation 16,865
600 Brunswick Corporation 24,666
3,400 Carnival Corporation 145,078
600 Centex Corporation 28,770
1,100 Circuit City Stores, Inc. (Circuit City Group) 12,848
3,300 Clear Channel Communications, Inc. 136,917
12,187 Comcast Corporation(b) 366,829
500 Cooper Tire & Rubber Company 10,695
900 Dana Corporation 18,144
900 Darden Restaurants, Inc. 20,394
3,000 Delphi Corporation 30,600
500 Dillard's, Inc. 8,415
1,800 Dollar General Corporation 33,768
500 Dow Jones & Company, Inc. 23,045
1,500 Eastman Kodak Company 38,685
3,500 eBay, Inc. 279,370
1,100 Family Dollar Stores, Inc. 35,354
900 Federated Department Stores, Inc. 44,100
9,900 Ford Motor Company 152,064
800 Fortune Brands, Inc. 61,000
1,400 Gannett Company, Inc. 121,352
4,800 Gap, Inc. 105,648
3,000 General Motors Corporation 142,260
1,100 Genuine Parts Company 39,380
1,100 Goodyear Tire & Rubber Company(b,c) 9,581
1,600 Harley-Davidson, Inc. 90,112
700 Harrah's Entertainment, Inc. 37,226
1,100 Hasbro, Inc. 20,779
2,000 Hilton Hotels Corporation 34,980
12,300 Home Depot, Inc. 432,837
1,800 International Game Technology 67,932
2,200 Interpublic Group of Companies, Inc.(b) 34,518
1,400 J.C. Penney Company, Inc. 47,404
1,200 Johnson Controls, Inc. 65,832
700 Jones Apparel Group, Inc. 25,620
300 KB Home 20,679
600 Knight Ridder, Inc. 46,464
1,800 Kohl's Corporation(b) 75,222
1,100 Leggett & Platt, Inc. 24,860
2,500 Limited Brands, Inc. 51,600
600 Liz Claiborne, Inc. 21,060
4,200 Lowe's Companies, Inc. 218,652
1,200 Marriott International, Inc. 56,592
2,300 Mattel, Inc. 39,008
1,500 May Department Stores Company 46,200
600 Maytag Corporation 16,740
6,800 McDonald's Corporation 185,164
1,000 McGraw-Hill Companies, Inc. 78,860
300 Meredith Corporation 15,282
1,000 New York Times Company 45,810
1,400 Newell Rubbermaid, Inc. 33,096
1,400 NIKE, Inc.(c) 100,730
700 Nordstrom, Inc. 24,941
1,600 Office Depot, Inc.(b) 28,016
1,000 Omnicom Group, Inc. 79,510
600 Pulte Homes, Inc. 29,502
900 RadioShack Corporation 27,684
400 Reebok International, Ltd. 14,552
1,200 Sears, Roebuck and Company 48,060
900 Sherwin-Williams Company 34,245
500 Snap-On, Inc. 16,890
600 Stanley Works 25,506
2,700 Staples, Inc. 69,552
2,100 Starbucks Corporation(b) 81,606
1,100 Starwood Hotels & Resorts Worldwide, Inc. 43,769
4,900 Target Corporation 212,513
700 Tiffany & Company 27,300
24,750 Time Warner, Inc.(b) 416,295
2,700 TJX Companies, Inc. 66,339
1,100 Toys 'R' Us, Inc.(b) 16,995
1,800 Tribune Company 86,184
1,700 Univision Communications, Inc.(b) 57,545
700 VF Corporation(c) 32,312
9,500 Viacom, Inc. 367,175
800 Visteon Corporation 8,688
11,100 Walt Disney Company 255,633
700 Wendy's International, Inc. 27,300
500 Whirlpool Corporation 32,755
1,500 Yum! Brands, Inc.(b) 58,185
- -------------------------------------------------------------------------------------------------------------------------
Total Consumer Discretionary 6,287,363
=========================================================================================================================
Consumer Staples (10.9%)
- -------------------------------------------------------------------------------------------------------------------------
300 Adolph Coors Company 19,713
650 Alberto-Culver Company 30,654
1,900 Albertson's, Inc.(c) 44,384
11,100 Altria Group, Inc. 614,718
4,400 Anheuser-Busch Companies, Inc. 225,456
3,496 Archer-Daniels-Midland Company 61,390
1,200 Avon Products, Inc. 100,800
700 Brown-Foreman Corporation(c) 32,802
2,200 Campbell Soup Company 60,786
1,300 Clorox Company 67,314
13,200 Coca-Cola Company 667,524
2,400 Coca-Cola Enterprises, Inc. 64,800
2,800 Colgate-Palmolive Company 162,064
2,900 ConAgra Foods, Inc. 83,781
2,400 Costco Wholesale Corporation(b) 89,880
2,100 CVS Corporation 81,123
2,000 General Mills, Inc. 97,500
5,400 Gillette Company 220,968
1,900 H.J. Heinz Company 72,561
900 Hershey Foods Corporation 80,001
2,200 Kellogg Company 94,380
2,700 Kimberly-Clark Corporation 176,715
4,000 Kroger Company(b) 70,000
800 McCormick & Company, Inc. 27,328
1,400 Pepsi Bottling Group, Inc. 40,978
9,290 PepsiCo, Inc. 506,212
7,000 Procter & Gamble Company 740,250
400 R.J. Reynolds Tobacco Holdings, Inc. 25,908
2,400 Safeway, Inc.(b) 55,080
4,300 Sara Lee Corporation 99,244
800 SUPERVALU, Inc. 24,632
3,500 SYSCO Corporation 133,875
900 UST, Inc. 33,489
23,500 Wal-Mart Stores, Inc. 1,339,500
5,500 Walgreen Company 189,640
1,400 William Wrigley Jr. Company 86,380
800 Winn-Dixie Stores, Inc.(c) 6,096
- -------------------------------------------------------------------------------------------------------------------------
Total Consumer Staples 6,527,926
=========================================================================================================================
Energy (5.8%)
- -------------------------------------------------------------------------------------------------------------------------
400 Amerada Hess Corporation 28,452
1,345 Anadarko Petroleum Corporation 72,065
1,722 Apache Corporation 72,100
400 Ashland, Inc. 19,160
1,900 Baker Hughes, Inc. 69,692
900 BJ Services Company(b) 40,050
1,000 Burlington Resources, Inc. 67,270
5,778 ChevronTexaco Corporation 528,687
3,648 ConocoPhillips Company 260,102
1,200 Devon Energy Corporation 73,440
700 EOG Resources, Inc. 34,475
35,600 Exxon Mobil Corporation 1,514,780
2,300 Halliburton Company 68,540
700 Kerr-McGee Corporation 34,251
1,800 Marathon Oil Corporation 60,408
800 Nabors Industries, Ltd.(b) 35,488
800 Noble Corporation(b) 29,728
2,100 Occidental Petroleum Corporation 99,120
700 Rowan Companies, Inc.(b) 15,610
3,200 Schlumberger, Ltd. 187,296
600 Sunoco, Inc. 37,740
1,700 Transocean, Inc.(b) 47,209
1,400 Unocal Corporation 50,456
600 Valero Energy Corporation 38,256
- -------------------------------------------------------------------------------------------------------------------------
Total Energy 3,484,375
=========================================================================================================================
Financials (19.1%)
- -------------------------------------------------------------------------------------------------------------------------
1,500 ACE, Ltd. 65,760
2,700 AFLAC, Inc. 114,021
3,800 Allstate Corporation 174,420
750 Ambac Financial Group, Inc. 51,750
6,900 American Express Company 337,755
14,144 American International Group, Inc. 1,013,418
2,100 AmSouth Bancorporation 46,242
1,700 Aon Corporation 44,302
600 Apartment Investment & Management Company 16,902
11,047 Bank of America Corporation 889,173
4,200 Bank of New York Company, Inc. 122,388
6,000 Bank One Corporation 296,220
2,900 BB&T Corporation 100,021
700 Bear Stearns Companies, Inc. 56,098
1,200 Capital One Financial Corporation 78,636
7,300 Charles Schwab Corporation 75,117
1,376 Charter One Financial, Inc. 45,917
1,000 Chubb Corporation 69,000
1,045 Cincinnati Financial Corporation 42,835
28,006 Citigroup, Inc. 1,346,809
1,000 Comerica, Inc. 51,630
1,450 Countrywide Financial Corporation 85,985
1,900 E*TRADE Group, Inc.(b) 21,584
2,200 Equity Office Properties Trust 55,374
1,700 Equity Residential REIT 46,682
3,700 Federal Home Loan Mortgage Corporation 216,080
5,200 Federal National Mortgage Corporation 357,344
700 Federated Investors, Inc. 20,580
3,022 Fifth Third Bancorp 162,161
800 First Horizon National Corporation 35,168
1,300 Franklin Resources, Inc. 71,279
800 Golden West Financial Corporation 84,088
2,600 Goldman Sachs Group, Inc. 250,900
1,500 Hartford Financial Services Group, Inc. 91,620
1,410 Huntington Bancshares, Inc.(c) 30,174
11,110 J.P. Morgan Chase & Company 417,736
1,400 Janus Capital Group, Inc. 21,280
850 Jefferson-Pilot Corporation 42,152
2,400 KeyCorp 71,280
1,500 Lehman Brothers Holdings, Inc. 110,100
1,000 Lincoln National Corporation 44,880
1,000 Loews Corporation 58,010
800 M&T Bank Corporation 68,000
2,800 Marsh & McLennan Companies, Inc. 126,280
1,300 Marshall & Ilsley Corporation 47,801
800 MBIA, Inc. 47,112
6,900 MBNA Corporation 168,222
2,300 Mellon Financial Corporation 68,172
5,200 Merrill Lynch & Company, Inc. 281,996
4,100 MetLife, Inc. 141,450
500 MGIC Investment Corporation 36,810
800 Moody's Corporation 51,608
5,900 Morgan Stanley and Company 303,201
3,200 National City Corporation 110,944
900 North Fork Bancorporation, Inc.(c) 33,408
1,300 Northern Trust Corporation 54,964
1,000 Plum Creek Timber Company, Inc. 29,560
1,600 PNC Financial Services Group, Inc. 84,960
1,800 Principal Financial Group, Inc. 63,540
1,100 Progressive Corporation 96,272
1,000 ProLogis Trust 29,420
1,500 Providian Financial Corporation(b) 18,195
2,900 Prudential Financial, Inc. 127,426
1,400 Regions Financial Corporation 48,594
800 SAFECO Corporation 35,032
1,200 Simon Property Group, Inc. 57,852
2,400 SLM Corporation 91,944
1,800 SouthTrust Corporation 55,944
3,564 St. Paul Travelers Companies, Inc. 144,948
1,800 State Street Corporation 87,840
1,500 SunTrust Banks, Inc. 102,075
1,700 Synovus Financial Corporation 40,579
800 T. Rowe Price Group, Inc. 41,024
800 Torchmark Corporation 41,632
10,418 U.S. Bancorp 267,118
1,150 Union Planters Corporation 31,970
1,700 UnumProvident Corporation 26,435
7,100 Wachovia Corporation 324,825
4,800 Washington Mutual, Inc. 189,072
9,200 Wells Fargo & Company 519,432
700 XL Capital, Ltd. 53,445
500 Zions Bancorporation 28,260
- -------------------------------------------------------------------------------------------------------------------------
Total Financials 11,510,233
=========================================================================================================================
Health Care (12.7%)
- -------------------------------------------------------------------------------------------------------------------------
8,500 Abbott Laboratories 374,170
800 Aetna, Inc. 66,200
700 Allergan, Inc. 61,635
600 AmerisourceBergen Corporation 34,734
6,936 Amgen, Inc.(b) 390,289
700 Anthem, Inc.(b) 62,006
1,300 Applera Corporation (Applied Biosystems Group) 24,141
300 Bausch & Lomb, Inc. 18,849
3,300 Baxter International, Inc. 104,445
1,300 Becton, Dickinson and Company 65,715
1,690 Biogen Idec, Inc.(b) 99,710
1,375 Biomet, Inc. 54,312
4,400 Boston Scientific Corporation 181,236
10,500 Bristol-Myers Squibb Company 263,550
300 C.R. Bard, Inc.(c) 31,881
2,300 Cardinal Health, Inc. 168,475
2,400 Caremark Rx, Inc.(b) 81,240
1,000 Chiron Corporation(b) 46,400
700 CIGNA Corporation 45,157
6,100 Eli Lilly and Company 450,241
400 Express Scripts, Inc.(b) 30,936
1,900 Forest Laboratories, Inc.(b) 122,512
1,200 Genzyme Corporation(b) 52,272
1,600 Guidant Corporation 100,816
2,600 HCA, Inc. 105,638
1,300 Health Management Associates, Inc. 30,069
1,000 Humana, Inc.(b) 16,290
1,300 IMS Health, Inc. 32,825
16,090 Johnson & Johnson 869,343
1,233 King Pharmaceuticals, Inc.(b) 21,269
500 Manor Care, Inc. 16,220
1,500 McKesson Corporation 49,290
1,425 Medco Health Solutions, Inc.(b) 50,445
1,300 MedImmune, Inc.(b) 31,512
6,500 Medtronic, Inc. 327,990
12,000 Merck & Company, Inc. 564,000
300 Millipore Corporation(b) 15,729
1,400 Mylan Laboratories, Inc. 32,074
41,440 Pfizer, Inc. 1,481,894
500 Quest Diagnostics, Inc. 42,175
8,000 Schering-Plough Corporation 133,840
900 St. Jude Medical, Inc.(b) 68,634
1,000 Stryker Corporation 98,930
2,500 Tenet Healthcare Corporation(b) 29,400
3,400 UnitedHealth Group, Inc. 209,032
600 Watson Pharmaceuticals, Inc.(b) 21,366
800 WellPoint Health Networks, Inc.(b) 89,352
7,200 Wyeth Corporation 274,104
1,240 Zimmer Holdings, Inc.(b) 99,014
- -------------------------------------------------------------------------------------------------------------------------
Total Health Care 7,641,357
=========================================================================================================================
Industrials (10.1%)
- -------------------------------------------------------------------------------------------------------------------------
4,200 3M Company 363,216
1,700 Allied Waste Industries, Inc.(b) 21,403
1,100 American Power Conversion Corporation(c) 20,526
500 American Standard Companies, Inc.(b) 52,595
900 Apollo Group, Inc.(b) 81,792
700 Avery Dennison Corporation 44,961
4,500 Boeing Company 192,105
2,100 Burlington Northern Santa Fe Corporation 68,670
1,800 Caterpillar, Inc. 139,914
5,400 Cendant Corporation 127,872
900 Cintas Corporation 40,464
600 Cooper Industries, Ltd. 32,946
500 Crane Company 15,405
1,300 CSX Corporation 39,988
300 Cummins, Inc.(c) 17,943
800 Danaher Corporation(c) 74,016
1,300 Deere & Company 88,452
700 Delta Air Lines, Inc.(c) 4,354
300 Deluxe Corporation 12,393
1,200 Dover Corporation 48,036
900 Eaton Corporation 53,442
2,200 Emerson Electric Company 132,484
900 Equifax, Inc. 22,059
1,600 FedEx Corporation 115,056
600 Fluor Corporation 22,896
1,000 General Dynamics Corporation 93,620
55,400 General Electric Company 1,659,226
800 Goodrich Corporation 23,032
500 Grainger (W.W.), Inc.(c) 26,200
900 H&R Block, Inc. 40,599
4,600 Honeywell International, Inc. 159,068
1,600 Illinois Tool Works, Inc. 137,936
900 Ingersoll-Rand Company 58,095
600 ITT Industries, Inc. 47,574
2,400 Lockheed Martin Corporation 114,480
2,400 Masco Corporation 67,224
600 Monster Worldwide, Inc.(b) 15,366
400 Navistar International Corporation(b) 18,060
2,200 Norfolk Southern Corporation 52,404
967 Northrop Grumman Corporation 95,975
925 PACCAR, Inc. 52,226
700 Pall Corporation 16,646
700 Parker-Hannifin Corporation 38,703
1,400 Pitney Bowes, Inc. 61,250
600 Power-One, Inc.(b) 5,160
1,200 R.R. Donnelley & Sons Company 35,304
2,200 Raytheon Company 70,972
1,000 Robert Half International, Inc.(b) 27,270
1,000 Rockwell Automation, Inc. 32,690
900 Rockwell Collins, Inc. 29,025
500 Ryder System, Inc. 18,395
4,200 Southwest Airlines Company 59,976
700 Textron, Inc. 38,626
500 Thomas & Betts Corporation 12,020
10,838 Tyco International, Ltd. 297,503
1,400 Union Pacific Corporation 82,502
6,100 United Parcel Service, Inc. 427,915
2,800 United Technologies Corporation 241,528
3,100 Waste Management, Inc. 88,040
- -------------------------------------------------------------------------------------------------------------------------
Total Industrials 6,077,598
=========================================================================================================================
Information Technology (15.3%)
- -------------------------------------------------------------------------------------------------------------------------
4,400 ADC Telecommunications, Inc.(b,c) 11,000
1,200 Adobe Systems, Inc. 49,608
1,800 Advanced Micro Devices, Inc.(b) 25,596
700 Affiliated Computer Services, Inc.(b) 33,950
2,500 Agilent Technologies, Inc.(b) 67,525
2,000 Altera Corporation(b) 40,020
2,000 Analog Devices, Inc. 85,200
800 Andrew Corporation(b) 13,560
2,000 Apple Computer, Inc.(b) 51,460
9,100 Applied Materials, Inc.(b) 165,893
1,700 Applied Micro Circuits Corporation(b) 7,497
700 Autodesk, Inc. 23,450
3,200 Automatic Data Processing, Inc. 140,192
2,225 Avaya, Inc.(b) 30,438
1,200 BMC Software, Inc.(b) 20,760
1,600 Broadcom Corporation(b) 60,416
2,600 CIENA Corporation(b) 10,764
37,300 Cisco Systems, Inc.(b) 778,451
900 Citrix Systems, Inc.(b) 17,145
3,100 Computer Associates International, Inc. 83,111
1,000 Computer Sciences Corporation(b) 40,910
2,200 Compuware Corporation(b) 16,830
1,100 Comverse Technology, Inc.(b) 17,996
800 Convergys Corporation(b) 11,616
7,300 Corning, Inc.(b) 80,519
13,900 Dell, Inc.(b) 482,469
1,600 Electronic Arts, Inc. 80,992
2,600 Electronic Data Systems Corporation 47,554
13,100 EMC Corporation(b) 146,196
4,803 First Data Corporation 218,008
1,050 Fiserv, Inc.(b) 38,388
2,100 Gateway, Inc.(b) 10,122
16,541 Hewlett-Packard Company 325,858
35,200 Intel Corporation 905,696
9,200 International Business Machines Corporation 811,164
1,000 Intuit, Inc.(b) 42,470
1,000 Jabil Circuit, Inc.(b) 26,390
7,800 JDS Uniphase Corporation(b) 23,712
1,000 KLA-Tencor Corporation(b) 41,670
600 Lexmark International, Inc.(b) 54,276
1,600 Linear Technology Corporation 57,008
2,100 LSI Logic Corporation(b) 15,624
23,100 Lucent Technologies, Inc.(b,c) 77,847
1,700 Maxim Integrated Products, Inc. 78,183
500 Mercury Interactive Corporation(b) 21,275
3,300 Micron Technology, Inc.(b,c) 44,946
58,600 Microsoft Corporation 1,521,842
1,100 Molex, Inc. 32,758
12,700 Motorola, Inc. 231,775
900 National Semiconductor Corporation(b) 36,711
600 NCR Corporation(b) 26,814
1,800 Network Appliance, Inc.(b) 33,516
2,000 Novell, Inc.(b) 19,280
1,000 Novellus Systems, Inc.(b) 28,960
1,000 NVIDIA Corporation(b) 20,540
28,400 Oracle Corporation(b) 318,648
1,500 Parametric Technology Corporation(b) 6,870
2,000 Paychex, Inc. 74,560
1,900 PeopleSoft, Inc.(b) 32,072
800 PerkinElmer, Inc. 15,400
1,100 PMC-Sierra, Inc.(b) 13,365
700 QLogic Corporation(b) 18,893
4,300 QUALCOMM, Inc. 268,578
900 Sabre Holdings Corporation 21,231
2,800 Sanmina-SCI Corporation(b) 28,056
800 Scientific-Atlanta, Inc. 25,912
2,600 Siebel Systems, Inc.(b) 26,728
4,500 Solectron Corporation(b) 22,050
17,800 Sun Microsystems, Inc.(b) 69,420
1,500 SunGard Data Systems, Inc.(b) 39,105
1,600 Symantec Corporation 72,080
1,250 Symbol Technologies, Inc. 15,000
600 Tektronix, Inc. 17,760
2,200 Tellabs, Inc.(b) 19,206
1,100 Teradyne, Inc.(b) 22,418
9,400 Texas Instruments, Inc. 235,940
1,000 Thermo Electron Corporation(b) 29,200
1,900 Unisys Corporation(b) 24,757
2,300 VERITAS Software Corporation(b) 61,341
800 Waters Corporation(b) 34,520
4,300 Xerox Corporation(b) 57,749
1,800 Xilinx, Inc.(b) 60,534
3,600 Yahoo!, Inc.(b) 181,656
- -------------------------------------------------------------------------------------------------------------------------
Total Information Technology 9,199,000
=========================================================================================================================
Materials (2.7%)
- -------------------------------------------------------------------------------------------------------------------------
1,200 Air Products and Chemicals, Inc. 59,772
4,700 Alcoa, Inc. 144,525
600 Allegheny Technologies, Inc.(c) 6,132
400 Ball Corporation 26,400
600 Bemis Company, Inc. 16,206
4,983 Dow Chemical Company 197,775
5,400 E.I. du Pont de Nemours and Company 231,930
600 Eastman Chemical Company 25,542
1,400 Ecolab, Inc. 41,720
800 Engelhard Corporation 23,232
1,000 Freeport-McMoRan Copper & Gold, Inc. 30,500
1,352 Georgia-Pacific Corporation 47,455
300 Great Lakes Chemical Corporation(c) 7,536
800 Hercules, Inc.(b) 8,888
600 International Flavors and Fragrances, Inc. 21,750
2,600 International Paper Company 104,832
600 Louisiana-Pacific Corporation 14,154
1,291 Meadwestvaco Corporation 33,760
1,384 Monsanto Company 47,873
2,300 Newmont Mining Corporation 86,020
400 Nucor Corporation 23,760
900 Pactiv Corporation(b) 20,655
500 Phelps Dodge Corporation(b) 32,915
1,000 PPG Industries, Inc. 59,310
1,700 Praxair, Inc. 62,135
1,200 Rohm and Haas Company 46,536
500 Sealed Air Corporation(b) 24,540
400 Sigma-Aldrich Corporation 22,656
300 Temple-Inland, Inc. 18,531
600 United States Steel Corporation 17,178
700 Vulcan Materials Company 32,368
1,300 Weyerhaeuser Company(c) 76,960
600 Worthington Industries, Inc. 10,830
- -------------------------------------------------------------------------------------------------------------------------
Total Materials 1,624,376
=========================================================================================================================
Utilities (2.8%)
- -------------------------------------------------------------------------------------------------------------------------
3,300 AES Corporation(b) 28,611
700 Allegheny Energy, Inc.(b,c) 9,646
1,100 Ameren Corporation 48,092
2,100 American Electric Power Company, Inc.(c) 63,924
2,200 Calpine Corporation(b,c) 9,548
1,700 CenterPoint Energy, Inc. 18,343
1,000 CINergy Corporation(c) 37,940
900 CMS Energy Corporation(b,c) 7,479
1,300 Consolidated Edison, Inc. 53,573
1,100 Constellation Energy Group, Inc. 42,328
1,700 Dominion Resources, Inc. 108,477
1,100 DTE Energy Company(c) 42,922
4,900 Duke Energy Corporation 103,194
2,200 Dynegy, Inc.(c) 8,712
1,700 Edison International, Inc.(c) 39,780
3,392 El Paso Corporation 23,778
1,300 Entergy Corporation 70,980
1,775 Exelon Corporation 118,818
1,700 FirstEnergy Corporation 66,470
1,200 FPL Group, Inc. 76,344
900 KeySpan Corporation 32,535
700 Kinder Morgan, Inc. 42,147
300 Nicor, Inc.(c) 10,197
1,537 NiSource, Inc. 30,986
2,200 Pacific Gas & Electric Company(b) 60,544
400 Peoples Energy Corporation(c) 16,720
600 Pinnacle West Capital Corporation 23,436
1,100 PPL Corporation 47,135
1,527 Progress Energy, Inc. 65,310
1,300 Public Service Enterprise Group, Inc. 55,770
1,300 Sempra Energy 41,275
3,900 Southern Company 112,164
1,200 TECO Energy, Inc.(c) 15,276
1,700 TXU Corporation 58,038
2,800 Williams Companies, Inc. 28,840
2,255 Xcel Energy, Inc.(c) 37,726
- -------------------------------------------------------------------------------------------------------------------------
Total Utilities 1,657,058
- -------------------------------------------------------------------------------------------------------------------------
Total Common Stock (cost $59,268,883) 55,999,967
=========================================================================================================================
Interest Maturity
Shares Collateral Held for Securities Loaned (1.2%) Rate Date Value
- -------------------------------------------------------------------------------------------------------------------------
712,851 State Street Navigator Securities Lending Prime
Portfolio 1.070% N/A $712,851
- -------------------------------------------------------------------------------------------------------------------------
Total Collateral Held for Securities Loaned (cost
$712,851) 712,851
=========================================================================================================================
Shares or
Principal Interest Maturity
Amount Short-Term Investments (5.6%) Rate (d) Date Value
- -------------------------------------------------------------------------------------------------------------------------
2,644,795 The AAL Money Market Fund(e) 0.530% N/A $2,644,795
$750,000 UBS Finance Corporation 1.020 5/3/2004 749,958
- -------------------------------------------------------------------------------------------------------------------------
Total Short-Term Investments (at amortized cost) 3,394,753
- -------------------------------------------------------------------------------------------------------------------------
Total Investments (cost $63,376,487) $60,107,571
=========================================================================================================================
(a) The categories of investments are shown as apercentage of total
investments.
(b) Non-income producing security.
(c) All or a portion of the security is on loan as discussed in item 2(L)
of the Notes to Financial Statements.
(d) The interest rate shown reflects the yield, or for securities purchased
at a discount, the discount rate at the date of purchase.
(e) At April 30, 2004, $64,000 in cash was pledged as the initial margin
deposit for open financial futures contracts. In addition, $2,644,795 of
The AAL Money Market Fund was earmarked as collateral to cover open
financial futures contracts as follows:
Notional
Number of Expiration Principal Unrealized
Type Contracts Date Position Value Amount Loss
- -------------------------------------------------------------------------------------------------------------------------
S&P 500 Mini Futures 22 June 2004 Long $1,216,710 $1,242,022 $25,312
The accompanying notes to the financial statements
are an integral part of this schedule.
The AAL Equity Income Fund
Schedule of Investments as of April 30, 2004 (a)
Shares Common Stock (94.9%) Value
- -------------------------------------------------------------------------------------------------------------------------
Communications Services (4.3%)
- -------------------------------------------------------------------------------------------------------------------------
22,400 ALLTEL Corporation $1,127,616
105,200 AT&T Wireless Services, Inc.(b) 1,452,812
65,100 BellSouth Corporation 1,680,231
23,800 Nextel Communications, Inc.(b) 567,868
73,847 SBC Communications, Inc. 1,838,790
93,200 Verizon Communications, Inc. 3,517,368
62,500 Vodafone Group plc ADR 1,533,750
- -------------------------------------------------------------------------------------------------------------------------
Total Communications Services 11,718,435
=========================================================================================================================
Consumer Discretionary (11.9%)
- -------------------------------------------------------------------------------------------------------------------------
7,600 AutoZone, Inc.(b) 665,532
15,900 Best Buy Company, Inc. 862,575
17,800 Carnival Corporation 759,526
42,900 Clear Channel Communications, Inc. 1,779,921
36,231 Comcast Corporation(b) 1,090,553
45,500 Fox Entertainment Group, Inc.(b) 1,267,175
43,800 Home Depot, Inc. 1,541,322
28,400 Johnson Controls, Inc. 1,558,024
32,100 Koninklijke Philips Electronics NV 860,601
27,800 Lennar Corporation 1,302,430
154,000 Liberty Media Corporation(b) 1,684,760
19,000 Lowe's Companies, Inc. 989,140
95,600 McDonald's Corporation 2,603,188
19,100 Sears, Roebuck and Company 764,955
47,800 Staples, Inc. 1,231,328
67,200 Target Corporation 2,914,464
226,500 Time Warner, Inc.(b) 3,809,730
13,700 Toyota Motor Corporation ADR 1,002,977
25,600 Tribune Company 1,225,728
47,600 Viacom, Inc. 1,839,740
103,000 Walt Disney Company 2,372,090
- -------------------------------------------------------------------------------------------------------------------------
Total Consumer Discretionary 32,125,759
=========================================================================================================================
Consumer Staples (6.9%)
- -------------------------------------------------------------------------------------------------------------------------
59,400 Altria Group, Inc. 3,289,572
75,200 Archer-Daniels-Midland Company 1,320,512
66,100 CVS Corporation 2,553,443
37,900 General Mills, Inc. 1,847,625
22,600 Kimberly-Clark Corporation 1,479,170
45,500 Kraft Foods, Inc. 1,497,405
51,200 Kroger Company(b) 896,000
13,900 PepsiCo, Inc. 757,411
20,900 Procter & Gamble Company 2,210,175
21,300 R.J. Reynolds Tobacco Holdings, Inc.(c) 1,379,601
46,500 SUPERVALU, Inc. 1,431,735
- -------------------------------------------------------------------------------------------------------------------------
Total Consumer Staples 18,662,649
=========================================================================================================================
Energy (11.0%)
- -------------------------------------------------------------------------------------------------------------------------
45,130 Apache Corporation 1,889,593
45,500 Baker Hughes, Inc. 1,668,940
19,200 BJ Services Company(b) 854,400
42,100 BP plc 2,227,090
12,700 Burlington Resources, Inc. 854,329
40,947 ChevronTexaco Corporation 3,746,650
80,945 ConocoPhillips Company 5,771,378
21,400 EOG Resources, Inc. 1,053,950
167,200 Exxon Mobil Corporation 7,114,360
28,100 Nabors Industries, Ltd.(b) 1,246,516
39,600 Noble Corporation(b) 1,471,536
26,700 Valero Energy Corporation 1,702,392
- -------------------------------------------------------------------------------------------------------------------------
Total Energy 29,601,134
=========================================================================================================================
Financials (27.8%)
- -------------------------------------------------------------------------------------------------------------------------
35,700 A.G. Edwards, Inc. 1,306,263
34,100 ACE, Ltd. 1,494,944
60,200 Allstate Corporation 2,763,180
26,300 American Express Company 1,287,385
58,800 American International Group, Inc. 4,213,020
93,700 Bank of America Corporation 7,541,913
24,000 Bank of New York Company, Inc. 699,360
48,600 Bank One Corporation 2,399,382
203,633 Citigroup, Inc. 9,792,712
10,749 Countrywide Financial Corporation 637,416
23,800 Equity Office Properties Trust 599,046
38,700 Federal Home Loan Mortgage Corporation 2,260,080
38,000 Federal National Mortgage Corporation 2,611,360
20,400 Goldman Sachs Group, Inc. 1,968,600
40,700 Hartford Financial Services Group, Inc. 2,485,956
113,500 J.P. Morgan Chase & Company 4,267,600
47,500 MBNA Corporation 1,158,050
41,700 Merrill Lynch & Company, Inc. 2,261,391
75,800 MetLife, Inc. 2,615,100
44,800 Morgan Stanley and Company 2,302,272
25,100 North Fork Bancorporation, Inc.(c) 931,712
30,200 PMI Group, Inc. 1,299,506
54,300 Providian Financial Corporation(b) 658,659
35,900 Prudential Financial, Inc. 1,577,446
17,100 Simon Property Group, Inc. 824,391
62,100 SouthTrust Corporation 1,930,068
19,200 St. Paul Travelers Companies, Inc. 780,864
26,200 State Street Corporation 1,278,560
73,100 U.S. Bancorp 1,874,284
64,600 Wachovia Corporation 2,955,450
72,800 Wells Fargo & Company 4,110,288
34,500 Zions Bancorporation 1,949,940
- -------------------------------------------------------------------------------------------------------------------------
Total Financials 74,836,198
=========================================================================================================================
Health Care (6.4%)
- -------------------------------------------------------------------------------------------------------------------------
10,800 Abbott Laboratories 475,416
17,300 Aetna, Inc. 1,431,575
18,800 Anthem, Inc.(b,c) 1,665,304
50,000 Bristol-Myers Squibb Company 1,255,000
9,000 CIGNA Corporation 580,590
20,000 GlaxoSmithKline plc 840,000
29,800 IVAX Corporation(b,c) 634,740
20,600 Johnson & Johnson 1,113,018
79,800 McKesson Corporation 2,622,228
3,642 Medco Health Solutions, Inc.(b) 128,927
30,200 Merck & Company, Inc. 1,419,400
93,400 Pfizer, Inc. 3,339,984
45,200 Wyeth Corporation 1,720,764
- -------------------------------------------------------------------------------------------------------------------------
Total Health Care 17,226,946
=========================================================================================================================
Industrials (10.7%)
- -------------------------------------------------------------------------------------------------------------------------
16,900 Boeing Company 721,461
58,600 Burlington Northern Santa Fe Corporation 1,916,220
34,300 Caterpillar, Inc. 2,666,139
72,200 Cendant Corporation 1,709,696
19,400 Dover Corporation 776,582
8,500 Emerson Electric Company 511,870
21,300 FedEx Corporation 1,531,683
8,200 General Dynamics Corporation 767,684
47,100 General Electric Company 1,410,645
49,850 Honeywell International, Inc. 1,723,813
8,800 Illinois Tool Works, Inc. 758,648
15,000 Lockheed Martin Corporation 715,500
42,900 Masco Corporation 1,201,629
12,300 Northrop Grumman Corporation 1,220,775
34,500 Pitney Bowes, Inc. 1,509,375
18,600 Raytheon Company 600,036
52,200 Republic Services, Inc. 1,504,404
128,800 Tyco International, Ltd. 3,535,560
26,800 Union Pacific Corporation 1,579,324
27,500 United Technologies Corporation 2,372,150
- -------------------------------------------------------------------------------------------------------------------------
Total Industrials 28,733,194
=========================================================================================================================
Information Technology (7.7%)
- -------------------------------------------------------------------------------------------------------------------------
46,100 Applied Materials, Inc.(b) 840,403
63,300 Cisco Systems, Inc.(b) 1,321,071
37,700 Computer Sciences Corporation(b) 1,542,307
47,000 First Data Corporation 2,133,330
39,900 Harris Corporation 1,797,495
134,500 Hewlett-Packard Company 2,649,650
66,400 Intel Corporation 1,708,472
21,600 International Business Machines Corporation 1,904,472
67,900 Microsoft Corporation 1,763,363
91,100 Motorola, Inc. 1,662,575
29,800 Nokia Corporation ADR(c) 417,498
63,000 Oracle Corporation(b) 706,860
22,900 Storage Technology Corporation(b) 601,583
69,900 Texas Instruments, Inc. 1,754,490
- -------------------------------------------------------------------------------------------------------------------------
Total Information Technology 20,803,569
=========================================================================================================================
Materials (4.7%)
- -------------------------------------------------------------------------------------------------------------------------
34,300 Alcan, Inc. 1,379,889
51,500 Alcoa, Inc. 1,583,625
29,400 BASF AG(c) 1,522,038
35,800 E.I. du Pont de Nemours and Company 1,537,610
38,800 Georgia-Pacific Corporation 1,361,880
38,000 International Paper Company 1,532,160
39,400 Praxair, Inc. 1,440,070
41,300 Weyerhaeuser Company 2,444,960
- -------------------------------------------------------------------------------------------------------------------------
Total Materials 12,802,232
=========================================================================================================================
Utilities (3.5%)
- -------------------------------------------------------------------------------------------------------------------------
41,700 Dominion Resources, Inc. 2,660,877
21,500 Entergy Corporation 1,173,900
32,500 Exelon Corporation 2,175,550
38,800 FirstEnergy Corporation 1,517,080
28,500 FPL Group, Inc. 1,813,170
- -------------------------------------------------------------------------------------------------------------------------
Total Utilities 9,340,577
- -------------------------------------------------------------------------------------------------------------------------
Total Common Stock (cost $223,596,652) 255,850,693
=========================================================================================================================
Interest Maturity
Shares Collateral Held for Securities Loaned (2.0%) Rate (d) Date Value
- -------------------------------------------------------------------------------------------------------------------------
5,326,401 State Street Navigator Securities Lending Prime
Portfolio 1.070% N/A $5,326,401
- -------------------------------------------------------------------------------------------------------------------------
Total Collateral Held for Securities Loaned (cost
$5,326,401) 5,326,401
=========================================================================================================================
Interest Maturity
Shares Short-Term Investments (3.1%) Rate(d) Date Value
- -------------------------------------------------------------------------------------------------------------------------
8,398,228 The AAL Money Market Fund 0.530% N/A $8,398,228
- -------------------------------------------------------------------------------------------------------------------------
Total Short-Term Investments (at amortized cost) 8,398,228
- -------------------------------------------------------------------------------------------------------------------------
Total Investments (cost $237,321,281) $269,575,322
=========================================================================================================================
(a) The categories of investments are shown as apercentage of total
investments.
(b) Non-income producing security.
(c) All or a portion of the security is on loan as discussed in item 2(L)
of the Notes to Financial Statements.
(d) The interest rate shown reflects the yield.
The accompanying notes to the financial statements
are an integral part of this schedule.
The AAL Balanced Fund
Schedule of Investments as of April 30, 2004 (a)
Shares Common Stock (50.2%) Value
- -------------------------------------------------------------------------------------------------------------------------
Communications Services (1.2%)
- -------------------------------------------------------------------------------------------------------------------------
25,200 AT&T Wireless Services, Inc.(b) $348,012
3,400 CenturyTel, Inc. 98,192
34,300 Nextel Communications, Inc.(b) 818,398
71,599 SBC Communications, Inc. 1,782,815
20,050 Sprint Corporation (FON Group)(c) 358,694
55,200 Verizon Communications, Inc. 2,083,248
- -------------------------------------------------------------------------------------------------------------------------
Total Communications Services 5,489,359
=========================================================================================================================
Consumer Discretionary (7.7%)
- -------------------------------------------------------------------------------------------------------------------------
1,900 ADVO, Inc. 59,660
1,950 Aeropostale, Inc. 42,880
1,000 AnnTaylor Stores Corporation(b) 40,530
1,400 Applebee's International, Inc. 54,292
1,600 Arctic Cat, Inc. 38,000
1,200 Autoliv, Inc. 51,036
1,700 Boyd Gaming Corporation 39,950
21,800 Clear Channel Communications, Inc. 904,482
247,300 Comcast Corporation(b) 7,169,227
2,300 Cooper Tire & Rubber Company 49,197
1,550 Cost Plus, Inc.(b) 56,110
247,600 Cox Communications, Inc.(b) 8,094,044
11,100 Dollar General Corporation 208,236
900 Entercom Communications Corporation(b) 41,040
1,400 Ethan Allen Interiors, Inc. 58,198
34,300 Family Dollar Stores, Inc. 1,102,402
2,300 Fossil, Inc. 56,327
1,500 Gander Mountain Company(b) 33,675
27,100 Gannett Company, Inc. 2,349,028
700 Gentex Corporation 27,531
2,400 Gymboree Corporation(b) 42,360
92,300 Harley-Davidson, Inc. 5,198,336
71,400 Home Depot, Inc. 2,512,566
3,900 Interface, Inc.(b) 33,267
1,400 International Speedway Corporation 58,982
7,700 Kohl's Corporation(b) 321,783
1,300 Lee Enterprises, Inc. 62,114
145,700 Liberty Media Corporation(b) 1,593,958
2,100 Linens 'n Things, Inc.(b) 68,124
836 M.D.C. Holdings, Inc.(c) 51,656
2,100 Marine Products Corporation 37,128
1,700 MarineMax, Inc.(b) 48,467
1,800 Maytag Corporation 50,220
5,900 Nordstrom, Inc. 210,217
1,000 P.F. Chang's China Bistro, Inc.(b) 48,860
3,200 Quiksilver, Inc. 69,216
4,800 Radio One, Inc.(b) 91,584
1,800 Red Robin Gourmet Burgers, Inc.(b,c) 51,750
1,300 Regis Corporation 56,446
1,800 SCP Pool Corporation 72,378
1,600 Select Comfort Corporation(b) 38,784
1,350 Shuffle Master, Inc.(c) 44,212
27,208 Starwood Hotels & Resorts Worldwide, Inc. 1,082,606
56,481 Tiffany & Company(c) 2,202,759
1,200 Toll Brothers, Inc.(b) 47,484
2,700 Toys 'R' Us, Inc.(b) 41,715
21,900 Tribune Company 1,048,572
2,000 West Marine, Inc.(b,c) 58,160
1,600 Winnebago Industries, Inc.(c) 46,128
1,700 Wolverine World Wide, Inc. 45,696
- -------------------------------------------------------------------------------------------------------------------------
Total Consumer Discretionary 35,811,373
=========================================================================================================================
Consumer Staples (6.0%)
- -------------------------------------------------------------------------------------------------------------------------
47,850 Alberto-Culver Company(d) 2,256,606
137,200 Altria Group, Inc. 7,598,136
4,500 Casey's General Stores, Inc.(c) 74,520
1,100 Church & Dwight Company, Inc. 49,445
3,700 Corn Products International, Inc. 157,250
1,200 Dean Foods Company 40,296
51,200 General Mills, Inc. 2,496,000
1,600 NBTY, Inc.(b) 59,456
120,900 Wal-Mart Stores, Inc.(d) 6,891,300
240,000 Walgreen Company 8,275,200
1,500 WD-40 Company 45,525
- -------------------------------------------------------------------------------------------------------------------------
Total Consumer Staples 27,943,734
=========================================================================================================================
Energy (4.4%)
- -------------------------------------------------------------------------------------------------------------------------
30,418 Apache Corporation 1,273,602
35,900 Baker Hughes, Inc.(d) 1,316,812
25,500 BJ Services Company(b) 1,134,750
13,300 Burlington Resources, Inc. 894,691
4,400 ChevronTexaco Corporation 402,600
2,000 Cimarex Energy Company(b) 55,180
11,500 ConocoPhillips Company 819,950
4,000 Energy Partners, Ltd.(b) 56,000
19,500 ENSCO International, Inc. 533,715
62,300 EOG Resources, Inc. 3,068,275
1,700 Evergreen Resources, Inc. 68,221
151,886 Exxon Mobil Corporation 6,462,749
4,200 Key Energy Services, Inc.(b) 44,772
2,300 Maverick Tube Corporation(b) 52,049
24,100 Nabors Industries, Ltd.(b) 1,069,076
1,300 Newfield Exploration Company(b) 68,484
25,100 Noble Corporation(b) 932,716
1,700 Patina Oil & Gas Corporation 47,260
1,800 Patterson-UTI Energy, Inc.(b) 65,142
1,000 Precision Drilling Corporation(b) 47,900
17,200 Rowan Companies, Inc.(b) 383,560
18,000 Schlumberger, Ltd. 1,053,540
9,700 Smith International, Inc.(b) 531,075
1,600 St. Mary Land & Exploration Company 57,840
500 Teekay Shipping Corporation 30,400
2,100 Ultra Petroleum Corporation(b) 68,964
- -------------------------------------------------------------------------------------------------------------------------
Total Energy 20,539,323
=========================================================================================================================
Financials (12.0%)
- -------------------------------------------------------------------------------------------------------------------------
1,350 Affiliated Managers Group, Inc.(c) 65,745
62,300 AFLAC, Inc. 2,630,929
600 Alexandria Real Estate Equities, Inc.(c) 34,092
900 AMB Property Corporation 27,270
15,600 Ambac Financial Group, Inc.(d) 1,076,400
99,000 American Express Company 4,846,050
114,262 American International Group, Inc.(d) 8,186,872
3,050 Argonaut Group, Inc.(b) 56,425
49,900 Bank of America Corporation 4,016,451
30,600 Bank One Corporation 1,510,722
1,369 BOK Financial Corporation(b) 53,473
40,600 Charles Schwab Corporation 417,774
145,645 Citigroup, Inc.(d) 7,004,068
1,300 Corus Bankshares, Inc. 49,075
8,199 Countrywide Financial Corporation 486,201
800 Developers Diversified Realty Corporation 26,200
1,000 Eastgroup Properties, Inc. 28,950
56,300 Federal National Mortgage Corporation 3,868,936
1,300 First BanCorp(c) 47,918
1,500 First Midwest Bancorp, Inc. 50,625
2,100 HCC Insurance Holdings, Inc. 67,242
2,500 HRPT Properties Trust 23,875
2,000 Investors Financial Services Corporation(c) 77,740
119,220 J.P. Morgan Chase & Company 4,482,672
7,200 Lehman Brothers Holdings, Inc. 528,480
1,100 MAF Bancorp, Inc. 44,935
1,500 Main Street Banks, Inc.(c) 40,500
13,000 Marsh & McLennan Companies, Inc. 586,300
800 MB Financial, Inc. 28,200
118,350 MBNA Corporation 2,885,373
1,575 Mercantile Bank Corporation 56,621
18,300 Merrill Lynch & Company, Inc. 992,409
28,100 MetLife, Inc. 969,450
600 Mills Corporation 24,360
43,900 Morgan Stanley and Company 2,256,021
13,700 North Fork Bancorporation, Inc.(c) 508,544
15,600 Northern Trust Corporation 659,568
800 Piper Jaffray Companies(b) 38,736
2,000 Platinum Underwriters Holdings, Ltd. 63,960
1,000 PrivateBancorp, Inc.(c) 55,320
17,300 Progressive Corporation 1,514,096
54,600 Providian Financial Corporation(b) 662,298
1,600 Raymond James Financial, Inc.(c) 40,192
1,100 Reinsurance Group of America, Inc. 42,702
1,800 RLI Corporation(c) 62,550
400 S&P SmallCap 600 Index Fund I Shares 54,824
800 SL Green Realty Corporation 32,640
1,300 Southwest Bancorporation of Texas, Inc. 52,871
31,800 State Street Corporation 1,551,840
4,100 Sterling Bancshares, Inc. 52,111
800 Stewart Information Services Corporation 28,400
1,400 UCBH Holdings, Inc. 51,828
1,500 United Bankshares, Inc. 45,015
1,882 Washington Federal, Inc. 43,964
46,300 Wells Fargo & Company 2,614,098
3,900 Winston Hotels, Inc. 35,919
1,100 Wintrust Financial Corporation 52,239
- -------------------------------------------------------------------------------------------------------------------------
Total Financials 55,812,069
=========================================================================================================================
Health Care (5.9%)
- -------------------------------------------------------------------------------------------------------------------------
21,900 Abbott Laboratories 964,038
2,200 Advanced Medical Optics, Inc.(b) 69,388
33,400 Amgen, Inc.(b,d) 1,879,418
8,700 Barr Pharmaceuticals, Inc. 360,354
37,900 Boston Scientific Corporation 1,561,101
24,000 Bristol-Myers Squibb Company 602,400
9,300 Cardinal Health, Inc. 681,225
1,100 Community Health Systems, Inc.(b) 28,369
1,100 Cooper Companies, Inc. 59,400
1,900 Cytyc Corporation(b) 40,660
1,300 Dade Behring Holdings, Inc.(b) 59,800
500 Dendrite International, Inc.(b) 8,570
16,200 Eli Lilly and Company 1,195,722
9,000 Encore Medical Corporation(b) 70,650
900 Henry Schein, Inc.(b) 63,423
3,100 Intuitive Surgical, Inc.(b) 50,065
72,400 Johnson & Johnson 3,911,772
900 KOS Pharmaceuticals, Inc.(b,c) 37,044
1,400 LifePoint Hospitals, Inc.(b) 50,064
900 Martek Biosciences Corporation(b) 57,141
3,400 Medarex, Inc.(b,c) 32,402
14,978 Medco Health Solutions, Inc.(b) 530,221
1,400 Medicis Pharmaceutical Corporation 60,088
26,500 Medtronic, Inc. 1,337,190
21,500 Merck & Company, Inc. 1,010,500
900 Millipore Corporation(b) 47,187
32,000 Mylan Laboratories, Inc. 733,120
1,300 PacifiCare Health Systems, Inc. 46,488
2,100 Perrigo Company 45,297
210,125 Pfizer, Inc.(d) 7,514,070
1,500 Protein Design Labs, Inc.(b) 36,720
1,000 Renal Care Group, Inc.(b) 49,480
1,000 ResMed, Inc.(b) 49,280
5,300 Savient Pharmaceuticals, Inc.(b) 19,875
800 Sierra Health Services, Inc.(b) 29,720
9,100 St. Jude Medical, Inc.(b) 693,966
1,500 TECHNE Corporation(b) 58,440
1,300 Telik, Inc.(b) 30,511
3,000 United Surgical Partners International, Inc.(b) 108,660
1,400 Ventana Medical Systems, Inc.(b) 69,286
2,500 Vertex Pharmaceuticals, Inc.(b) 21,600
12,000 Watson Pharmaceuticals, Inc.(b) 427,320
25,100 WellPoint Health Networks, Inc.(b) 2,803,419
- -------------------------------------------------------------------------------------------------------------------------
Total Health Care 27,505,444
=========================================================================================================================
Industrials (5.0%)
- -------------------------------------------------------------------------------------------------------------------------
16,900 3M Company 1,461,512
51,100 American Power Conversion Corporation 953,526
3,100 Artesyn Technologies, Inc.(b) 28,551
500 Briggs & Stratton Corporation 35,000
2,200 Casella Waste Systems, Inc.(b) 31,900
15,500 Caterpillar, Inc. 1,204,815
62,200 Cendant Corporation 1,472,896
1,400 Chicago Bridge and Iron Company 40,250
7,100 CNF, Inc. 259,576
1,700 Consolidated Graphics, Inc.(b) 63,444
1,700 Donaldson Company, Inc. 46,631
17,500 Dover Corporation 700,525
1,500 Dycom Industries, Inc.(b) 35,370
1,800 EDO Corporation 40,860
8,600 Emerson Electric Company 517,892
5,800 Exult, Inc.(b,c) 35,438
7,100 Fastenal Company 389,577
2,200 Federal Signal Corporation 40,040
1,300 G & K Services, Inc. 49,270
17,200 General Dynamics Corporation 1,610,264
143,100 General Electric Company 4,285,845
1,450 Genesee and Wyoming, Inc. 33,422
600 Genlyte Group, Inc.(b) 34,392
1,450 Graco, Inc. 40,890
2,100 Granite Construction, Inc. 41,685
2,600 Heartland Express, Inc. 63,830
50,700 Herman Miller, Inc. 1,332,396
9,600 Honeywell International, Inc. 331,968
1,900 IDEX Corporation 89,775
6,800 Illinois Tool Works, Inc. 586,228
900 Intersections, Inc.(b) 22,230
1,100 Jacobs Engineering Group, Inc.(b) 45,881
3,800 Jacuzzi Brands, Inc.(b) 33,212
3,500 KForce, Inc.(b) 32,900
900 Landstar System, Inc. 40,464
1,400 Lindsay Manufacturing Company 33,110
2,300 Manitowoc Company, Inc. 69,943
1,600 Mercury Computer Systems, Inc.(b) 35,840
1,500 Monster Worldwide, Inc.(b) 38,415
2,800 MSC Industrial Direct Company, Inc. 80,248
61,100 Norfolk Southern Corporation 1,455,402
9,800 Northrop Grumman Corporation 972,650
900 Oshkosh Truck Corporation 46,080
1,000 Pacer International, Inc.(b) 18,800
1,100 Precision Castparts Corporation 49,511
1,000 Ritchie Bros. Auctioneers, Inc. 58,750
800 Roper Industries, Inc. 38,840
3,200 SkyWest, Inc.(c) 58,240
2,200 Tetra Tech, Inc.(b) 36,542
700 Toro Company 40,705
85,200 Tyco International, Ltd. 2,338,740
1,100 United Defense Industries, Inc.(b) 38,115
18,500 United Technologies Corporation 1,595,810
1,300 Waste Connections, Inc.(b) 52,351
1,200 Watson Wyatt & Company Holdings(b) 31,476
- -------------------------------------------------------------------------------------------------------------------------
Total Industrials 23,122,023
=========================================================================================================================
Information Technology (7.7%)
- -------------------------------------------------------------------------------------------------------------------------
1,100 Actel Corporation(b) 21,912
2,100 Acxiom Corporation 48,594
900 ADTRAN, Inc. 22,059
1,500 Advanced Digital Information Corporation(b) 15,840
1,800 Akamai Technologies, Inc.(b,c) 21,276
42,200 Applied Materials, Inc.(b,d) 769,306
4,200 Arris Group, Inc.(b) 25,116
17,100 Arrow Electronics, Inc.(b) 432,288
1,700 Autodesk, Inc. 56,950
1,300 Avocent Corporation(b) 41,717
1,900 Axcelis Technologies, Inc.(b) 19,969
800 BARRA, Inc. 32,680
3,600 Bell Microproducts, Inc.(b,c) 23,472
2,600 BISYS Group, Inc.(b) 37,700
800 CACI International, Inc.(b,c) 36,400
185,300 Cisco Systems, Inc.(b,d) 3,867,211
25,000 Computer Sciences Corporation(b) 1,022,750
900 Cymer, Inc.(b) 28,782
3,100 Cypress Semiconductor Corporation(b,c) 43,307
69,300 Dell, Inc.(b) 2,405,403
1,000 Dionex Corporation(b,c) 51,030
56,100 EMC Corporation(b) 626,076
1,050 Fair Isaac Corporation(c) 35,406
103,700 First Data Corporation 4,706,943
25,400 Global Payments, Inc. 1,218,692
4,600 Ingram Micro, Inc.(b) 54,970
172,100 Intel Corporation 4,428,133
1,900 Inter-Tel, Inc. 45,486
49,000 International Business Machines Corporation 4,320,330
900 International Rectifier Corporation(b) 35,676
1,200 Kronos, Inc. 43,776
1,200 Littelfuse, Inc.(b) 46,080
800 Manhattan Associates, Inc.(b,c) 21,496
1,800 Metrologic Instruments, Inc.(c) 28,296
286,700 Microsoft Corporation(d) 7,445,599
3,400 MPS Group, Inc.(b) 37,196
2,800 MSC.Software Corporation(b) 26,096
3,400 Opsware, Inc.(b,c) 24,888
146,100 Oracle Corporation(b,d) 1,639,242
12,400 Parametric Technology Corporation(b) 56,792
2,000 Photronics, Inc.(b) 29,780
3,500 Pinnacle Systems, Inc.(b) 27,545
1,600 Plantronics, Inc.(b) 60,720
3,300 Plexus Corporation(b,c) 47,454
3,400 Powerwave Technologies, Inc.(b,c) 23,018
3,400 Skyworks Solutions, Inc.(b) 29,104
1,900 Tech Data Corporation(b) 64,600
46,400 Texas Instruments, Inc. 1,164,640
6,000 Three-Five Systems, Inc.(b) 30,540
400 Tollgrade Communications, Inc.(b,c) 4,872
1,000 Varian Semiconductor Equipment Associates, Inc.(b) 32,560
900 Varian, Inc.(b) 36,936
2,600 Vishay Intertechnology, Inc.(b) 45,240
6,300 Wind River Systems, Inc.(b) 58,968
1,000 Zebra Technologies Corporation 73,290
- -------------------------------------------------------------------------------------------------------------------------
Total Information Technology 35,594,202
=========================================================================================================================
Materials (0.1%)
- -------------------------------------------------------------------------------------------------------------------------
1,400 H.B. Fuller Company 38,360
2,400 MacDermid, Inc. 77,712
2,200 NOVA Chemicals Corporation(c) 56,100
2,600 Packaging Corporation of America 57,148
1,300 Peabody Energy Corporation 60,957
1,700 RPM International, Inc.(c) 25,636
1,300 Schweitzer-Mauduit International, Inc. 40,287
1,900 Steel Dynamics, Inc.(b,c) 45,733
- -------------------------------------------------------------------------------------------------------------------------
Total Materials 401,933
=========================================================================================================================
Utilities (0.2%)
- -------------------------------------------------------------------------------------------------------------------------
1,725 Aqua America, Inc. 35,276
1,400 Energen Corporation 57,890
19,200 Entergy Corporation(c) 1,048,320
1,200 Piedmont Natural Gas Company, Inc. 48,600
- -------------------------------------------------------------------------------------------------------------------------
Total Utilities 1,190,086
- -------------------------------------------------------------------------------------------------------------------------
Total Common Stock (cost $219,989,375) 233,409,546
=========================================================================================================================
Principal
Amount Long-Term Fixed Income (32.1%) Interest Rate Maturity Date Value
- -------------------------------------------------------------------------------------------------------------------------
Asset-Backed Securities (3.3%)
- -------------------------------------------------------------------------------------------------------------------------
$1,250,000 Chase Credit Card Master Trust(e) 1.230% 5/15/2004 $1,253,178
1,800,000 Citibank Credit Card Master Trust I 6.050 1/15/2010 1,958,272
1,500,000 Countrywide Asset Backed Certificates 4.905 8/25/2032 1,503,218
672,937 EQCC Home Equity Loan Trust 6.930 2/15/2029 674,486
500,000 Federal Home Loan Mortgage Corporation 3.158 12/27/2029 504,660
1,500,000 GMAC Mortgage Corporation Loan Trust(e) 1.230 5/25/2004 1,504,016
1,022,236 Green Tree Financial Corporation 6.330 11/1/2029 1,026,202
1,900,000 MBNA Credit Card Master Note Trust 5.750 10/15/2008 2,016,261
5,000,000 Residential Asset Securities Corporation(d) 3.250 5/25/2029 4,974,135
- -------------------------------------------------------------------------------------------------------------------------
Total Asset-Backed Securities 15,414,428
=========================================================================================================================
Basic Materials (1.0%)
- -------------------------------------------------------------------------------------------------------------------------
800,000 Codelco, Inc. 5.500 10/15/2013 795,901
1,000,000 Falconbridge, Ltd. 7.350 6/5/2012 1,124,840
750,000 Phelps Dodge Corporation 8.750 6/1/2011 904,513
500,000 Precision Castparts Corporation 5.600 12/15/2013 492,673
500,000 Temple-Inland, Inc. 7.875 5/1/2012 570,731
500,000 Weyerhaeuser Company 5.250 12/15/2009 514,604
- -------------------------------------------------------------------------------------------------------------------------
Total Basic Materials 4,403,262
=========================================================================================================================
Capital Goods (1.2%)
- -------------------------------------------------------------------------------------------------------------------------
750,000 Boeing Capital Corporation(c) 6.100 3/1/2011 802,340
500,000 Bombardier Capital, Inc. 6.125 6/29/2006 525,364
250,000 Goodrich Corporation 6.450 12/15/2007 272,720
1,000,000 Hutchison Whampoa International, Ltd. 6.250 1/24/2014 981,586
250,000 Packaging Corporation of America 4.375 8/1/2008 248,410
1,000,000 Raytheon Company 6.000 12/15/2010 1,075,716
250,000 Sealed Air Corporation 5.375 4/15/2008 260,209
500,000 Tyco International Group SA 6.750 2/15/2011 539,218
1,000,000 Tyco International Group SA 6.000 11/15/2013 1,013,729
- -------------------------------------------------------------------------------------------------------------------------
Total Capital Goods 5,719,292
=========================================================================================================================
Commercial Mortgage-Backed Securities (2.8%)
- -------------------------------------------------------------------------------------------------------------------------
500,000 Banc of America Commercial Mortgage, Inc. 5.118 7/11/2043 507,236
1,000,000 Bear Stearns Commercial Mortgage Securities 3.869 2/11/2041 974,996
1,000,000 Bear Stearns Commercial Mortgage Securities 4.487 2/11/2041 968,818
1,824,000 CAM Commercial Mortgage Corporation 4.834 11/14/2036 1,879,780
1,000,000 First Union National Bank Commercial Mortgage Trust 7.390 12/15/2031 1,135,682
995,920 First Union-Lehman Brothers-Bank of America
Commercial Mortgage Trust 6.280 11/18/2035 1,030,636
500,000 LB-UBS Commercial Mortgage Trust 3.323 3/15/2027 491,344
2,000,000 LB-UBS Commercial Mortgage Trust 3.086 5/15/2027 1,938,382
1,500,000 Morgan Stanley Capital I, Inc. 6.210 11/15/2031 1,626,213
1,300,000 Nationslink Funding Corporation 6.476 8/20/2030 1,422,370
1,000,000 Wachovia Bank Commercial Mortgage Trust 4.390 2/15/2036 967,779
- -------------------------------------------------------------------------------------------------------------------------
Total Commercial Mortgage-Backed Securities 12,943,236
=========================================================================================================================
Communications Services (2.1%)
- -------------------------------------------------------------------------------------------------------------------------
375,000 AT&T Broadband Corporation 8.375 3/15/2013 447,423
250,000 AT&T Wireless Services, Inc. 8.750 3/1/2031 304,982
1,000,000 British Sky Broadcasting Group plc 8.200 7/15/2009 1,166,364
1,000,000 Continental Cablevision, Inc. 8.875 9/15/2005 1,084,680
1,000,000 Deutsche Telekom International Finance(f) 8.500 6/15/2010 1,181,576
250,000 Deutsche Telekom International Finance BV 5.250 7/22/2013 248,161
300,000 News America, Inc.(c) 4.750 3/15/2010 299,972
750,000 News America, Inc. 7.250 5/18/2018 832,574
500,000 R.R. Donnelley & Sons Company 3.750 4/1/2009 488,784
875,000 Sprint Capital Corporation 7.625 1/30/2011 986,720
650,000 Sprint Capital Corporation 6.900 5/1/2019 672,638
500,000 Telefonos de Mexico SA 4.500 11/19/2008 494,134
500,000 TELUS Corporation 7.500 6/1/2007 552,521
350,000 TELUS Corporation 8.000 6/1/2011 405,986
500,000 Verizon Global Funding Corporation 7.250 12/1/2010 565,260
- -------------------------------------------------------------------------------------------------------------------------
Total Communications Services 9,731,775
=========================================================================================================================
Consumer Cyclical (2.1%)
- -------------------------------------------------------------------------------------------------------------------------
1,500,000 D.R. Horton, Inc. 7.500 12/1/2007 1,635,000
1,000,000 DaimlerChrysler North American Holdings Corporation 4.750 1/15/2008 1,014,474
250,000 Delphi Auto Systems Corporation 6.500 5/1/2009 265,465
750,000 Ford Motor Credit Company 6.500 1/25/2007 795,334
350,000 Ford Motor Credit Company 7.375 10/28/2009 378,339
500,000 Ford Motor Credit Company 7.375 2/1/2011 534,663
500,000 General Motors Acceptance Corporation 6.125 2/1/2007 527,797
750,000 General Motors Acceptance Corporation 5.850 1/14/2009 773,620
500,000 Lear Corporation 8.110 5/15/2009 574,375
500,000 Liberty Media Corporation 7.875 7/15/2009 568,321
500,000 Liberty Media Corporation 5.700 5/15/2013 499,954
750,000 Park Place Entertainment Corporation 8.500 11/15/2006 821,250
1,000,000 Yum! Brands, Inc. 7.700 7/1/2012 1,156,436
- -------------------------------------------------------------------------------------------------------------------------
Total Consumer Cyclical 9,545,028
=========================================================================================================================
Consumer Non-Cyclical (0.3%)
- -------------------------------------------------------------------------------------------------------------------------
350,000 Bunge Limited Finance Corporation 4.375 12/15/2008 348,788
850,000 Bunge Limited Finance Corporation 7.800 10/15/2012 981,949
- -------------------------------------------------------------------------------------------------------------------------
Total Consumer Non-Cyclical 1,330,737
=========================================================================================================================
Energy (0.2%)
- -------------------------------------------------------------------------------------------------------------------------
325,000 Pemex Project Funding Master Trust(f) 8.000 11/15/2011 357,825
750,000 XTO Energy, Inc. 4.900 2/1/2014 720,716
- -------------------------------------------------------------------------------------------------------------------------
Total Energy 1,078,541
=========================================================================================================================
Financials (4.0%)
- -------------------------------------------------------------------------------------------------------------------------
1,000,000 Archstone-Smith Trust 3.000 6/15/2008 959,609
500,000 Australia & New Zealand Banking Group, Ltd. Capital
Trust I 4.484 1/29/2049 491,418
585,000 Capital One Financial Corporation(c) 7.250 5/1/2006 625,844
800,000 Capital One Financial Corporation 8.750 2/1/2007 896,046
250,000 Capital One Financial Corporation 6.250 11/15/2013 255,673
750,000 Countrywide Financial Corporation 4.000 3/22/2011 707,867
1,000,000 Credit Suisse First Boston Mortgage Securities
Corporation 3.516 1/15/2037 978,928
800,000 Goldman Sachs Group, Inc. 5.250 10/15/2013 786,298
600,000 HSBC Capital Funding, LP(e) 9.547 6/30/2010 744,553
300,000 HSBC Capital Funding, LP(e) 10.176 6/30/2030 427,232
750,000 ING Capital Funding Trust III(e) 8.439 12/29/2010 891,848
1,890,000 Lehman Brothers, Inc.(e) 6.539 8/15/2008 2,020,089
2,000,000 MBIA Global Funding, LLC(d,e) 1.240 7/8/2004 2,000,074
375,000 Montpelier Reinsurance Holdings, Ltd. 6.125 8/15/2013 379,320
400,000 Morgan Stanley Dean Witter & Company 4.250 5/15/2010 393,957
500,000 RBS Capital Trust(e) 6.425 12/29/2034 493,624
1,000,000 Regency Centers, LP 7.125 7/15/2005 1,054,828
650,000 Royal Bank of Scotland Group plc 9.118 3/31/2049 797,163
500,000 Simon Property Group, LP 6.375 11/15/2007 546,860
250,000 Simon Property Group, LP 4.875 3/18/2010 253,336
500,000 Skandinaviska Enskilda(e) 4.958 3/29/2014 475,101
1,000,000 Sovereign Bancorp, Inc. 10.500 11/15/2006 1,166,410
625,000 Union Planters Corporation 7.750 3/1/2011 727,500
250,000 Vornado Realty Trust 5.625 6/15/2007 266,904
250,000 Westpac Capital Trust III(e) 5.819 9/30/2013 253,032
- -------------------------------------------------------------------------------------------------------------------------
Total Financials 18,593,514
=========================================================================================================================
Foreign (0.3%)
- -------------------------------------------------------------------------------------------------------------------------
750,000 Corporacion Andina de Fomento 6.875 3/15/2012 824,066
500,000 Mexico Government International 6.625 3/3/2015 503,750
- -------------------------------------------------------------------------------------------------------------------------
Total Foreign 1,327,816
=========================================================================================================================
Mortgage-Backed Securities (8.3%)
- -------------------------------------------------------------------------------------------------------------------------
18,829,211 Federal National Mortgage Association 15-Yr.
Conventional(g) 5.500 5/1/2019 19,390,230
18,900,000 Federal National Mortgage Association 30-Yr.
Conventional(g) 6.000 5/1/2034 19,331,147
- -------------------------------------------------------------------------------------------------------------------------
Total Mortgage-Backed Securities 38,721,377
=========================================================================================================================
Other (0.1%)
- -------------------------------------------------------------------------------------------------------------------------
500,000 Glencore Funding, LLC 6.000 4/15/2014 472,516
- -------------------------------------------------------------------------------------------------------------------------
Total Other 472,516
=========================================================================================================================
Transportation (0.3%)
- -------------------------------------------------------------------------------------------------------------------------
750,000 CSX Corporation 6.750 3/15/2011 822,164
250,000 Fedex Corporation 2.650 4/1/2007 244,492
500,000 Union Pacific Corporation 5.375 5/1/2014 499,002
- -------------------------------------------------------------------------------------------------------------------------
Total Transportation 1,565,658
=========================================================================================================================
U.S. Government (4.2%)
- -------------------------------------------------------------------------------------------------------------------------
2,500,000 Federal Home Loan Mortgage Corporation(c) 3.500 9/15/2007 2,515,310
5,000,000 Federal National Mortgage Association(e) 1.055 5/3/2004 4,998,805
1,000,000 Federal National Mortgage Association(c) 4.250 7/15/2007 1,029,900
1,750,000 U.S. Treasury Notes(c) 2.250 2/15/2007 1,726,347
250,000 U.S. Treasury Notes(c) 3.125 4/15/2009 244,502
3,900,000 U.S. Treasury Notes(c) 6.000 8/15/2009 4,325,954
1,000,000 U.S. Treasury Notes(c) 6.500 2/15/2010 1,137,188
2,600,000 U.S. Treasury Notes(c) 5.000 2/15/2011 2,742,696
250,000 U.S. Treasury Notes(c) 4.250 8/15/2013 245,820
750,000 U.S. Treasury Notes(c) 4.250 11/15/2013 735,762
- -------------------------------------------------------------------------------------------------------------------------
Total U.S. Government 19,702,284
=========================================================================================================================
Utilities (1.9%)
- -------------------------------------------------------------------------------------------------------------------------
500,000 Alliant Energy Resources, Inc. 7.375 11/9/2009 560,892
250,000 Centerpoint Energy, Inc. 7.250 9/1/2010 266,590
1,250,000 FirstEnergy Corporation 6.450 11/15/2011 1,315,999
1,000,000 NiSource Finance Corporation 7.875 11/15/2010 1,164,095
500,000 Oncor Electric Delivery Company 7.000 9/1/2022 538,118
250,000 Pacific Gas & Electric Company 4.200 3/1/2011 239,870
250,000 Pacific Gas & Electric Company 6.050 3/1/2034 236,425
1,091,324 Power Contract Financing, LLC 5.200 2/1/2006 1,107,727
737,239 Power Receivables Finance, LLC 6.290 1/1/2012 756,894
600,000 Public Service Company of New Mexico 4.400 9/15/2008 602,809
200,000 Texas-New Mexico Power Company 6.125 6/1/2008 203,919
750,000 Western Resources, Inc. 7.875 5/1/2007 834,750
850,000 Xcel Energy, Inc. 7.000 12/1/2010 952,476
- -------------------------------------------------------------------------------------------------------------------------
Total Utilities 8,780,564
- -------------------------------------------------------------------------------------------------------------------------
Total Long-Term Fixed Income (cost $148,956,484) 149,330,028
=========================================================================================================================
Maturity
Shares Collateral Held for Securities Loaned (4.3%) Interest Rate (h) Date Value
- -------------------------------------------------------------------------------------------------------------------------
19,783,668 State Street Navigator Securities Lending Prime
Portfolio 1.070% N/A $19,783,668
- -------------------------------------------------------------------------------------------------------------------------
Total Collateral Held for Securities Loaned (cost
$19,783,668) 19,783,668
=========================================================================================================================
Shares or
Principal Maturity
Amount Short-Term Investments (13.4%) Interest Rate (h) Date Value
- -------------------------------------------------------------------------------------------------------------------------
$10,000,000 Kitty Hawk Funding Corporation 1.041% 5/7/2004 $9,998,267
2,000,000 Merrill Lynch & Company, Inc.(e) 1.420 5/21/2004 2,000,310
9,500,000 PepsiCo, Inc. 1.020 5/3/2004 9,499,462
10,000,000 Preferred Receivables Funding Corporation 1.020 5/4/2004 9,999,150
11,343,227 The AAL Money Market Fund 0.530 N/A 11,343,227
4,500,000 Thunder Bay Funding, Inc. 1.041 5/17/2004 4,497,920
10,000,000 Total Capital SA 1.030 5/3/2004 9,999,428
5,000,000 United Healthcare Corporation 1.051 5/18/2004 4,997,521
- -------------------------------------------------------------------------------------------------------------------------
Total Short-Term Investments (at amortized cost) 62,335,285
- -------------------------------------------------------------------------------------------------------------------------
Total Investments (cost $451,064,812) $464,858,527
=========================================================================================================================
(a) The categories of investments are shown as apercentage of total
investments.
(b) Non-income producing security.
(c) All or a portion of the security is on loan as discussed in item 2(L)
of the Notes to Financial Statements.
(d) Earmarked as collateral for options, futures or long settling trades as
discussed in the notes to the financial statements.
(e) Denotes variable rate obligations for which the current yield and next
scheduled reset date are shown.
(f) Denotes step coupon bonds for which the current interest rate and next
scheduled reset date are shown.
(g) Denotes investments purchased on a when-issued basis.
(h) The interest rate shown reflects the yield or, for securities purchased
at a discount, the discount rate at the date of purchase.
The accompanying notes to the financial statements
are an integral part of this schedule.
The AAL High Yield Bond Fund
Schedule of Investments as of April 30, 2004(a)
Principal
Amount Long-Term Fixed Income (80.7%) Interest Rate Maturity Date Value
- -------------------------------------------------------------------------------------------------------------------------
Basic Materials (4.2%)
- -------------------------------------------------------------------------------------------------------------------------
$100,000 Abitibi-Consolidated, Inc. 6.950% 4/1/2008 $103,041
125,000 Abitibi-Consolidated, Inc.(b) 5.250 6/20/2008 120,445
500,000 Abitibi-Consolidated, Inc. 8.550 8/1/2010 542,430
350,000 Abitibi-Consolidated, Inc. 8.850 8/1/2030 355,962
75,000 ARCO Chemical Company 10.250 11/1/2010 76,875
175,000 Compass Minerals Group, Inc. 10.000 8/15/2011 199,500
475,000 Equistar Chemicals, LP 8.750 2/15/2009 499,938
200,000 Georgia-Pacific Corporation 8.000 1/15/2024 210,000
400,000 Hercules, Inc. 11.125 11/15/2007 480,000
700,000 ISP Holdings, Inc. 10.625 12/15/2009 777,000
850,000 MDP Acquisitions plc 9.625 10/1/2012 956,250
850,000 Nalco Company 8.875 11/15/2013 896,750
850,000 Peabody Energy Corporation 6.875 3/15/2013 884,000
625,000 Stone Container Corporation 8.375 7/1/2012 671,875
- -------------------------------------------------------------------------------------------------------------------------
Total Basic Materials 6,774,066
=========================================================================================================================
Capital Goods (5.6%)
- -------------------------------------------------------------------------------------------------------------------------
900,000 Allied Waste North America, Inc. 8.875 4/1/2008 999,000
800,000 Allied Waste North America, Inc. 8.500 12/1/2008 890,000
100,000 Allied Waste North America, Inc.(b) 9.250 9/1/2012 113,500
400,000 Building Materials Corporation of America 7.750 7/15/2005 405,000
600,000 Crown Euro Holdings SA 9.500 3/1/2011 672,750
400,000 Crown Euro Holdings SA 10.875 3/1/2013 466,000
150,000 Eircom Funding 8.250 8/15/2013 162,000
500,000 Greif Brothers Corporation 8.875 8/1/2012 550,000
700,000 Kappa Beheer BV 10.625 7/15/2009 735,000
700,000 Kraton Polymers, LLC/Capital Corporation 8.125 1/15/2014 745,500
800,000 Nortek Holdings, Inc.(c) Zero Coupon 5/15/2011 598,000
700,000 North American Energy Partnership 8.750 12/1/2011 689,500
100,000 Owens-Brockway Glass Container, Inc. 8.875 2/15/2009 108,625
125,000 Owens-Brockway Glass Container, Inc. 7.750 5/15/2011 130,938
700,000 Owens-Brockway Glass Container, Inc. 8.750 11/15/2012 764,750
350,000 Owens-Brockway Glass Container, Inc. 8.250 5/15/2013 361,375
100,000 Stone Container Finance Corporation 11.500 8/15/2006 102,250
425,000 Trinity Industries, Inc. 6.500 3/15/2014 413,312
- -------------------------------------------------------------------------------------------------------------------------
Total Capital Goods 8,907,500
=========================================================================================================================
Communications Services (22.1%)
- -------------------------------------------------------------------------------------------------------------------------
1,000,000 ACC Escrow Corporation 10.000 8/1/2011 965,000
300,000 American Color Graphics, Inc. 10.000 6/15/2010 258,000
675,000 American Media Operation, Inc. 10.250 5/1/2009 708,750
1,000,000 American Tower Escrow Corporation Zero Coupon 8/1/2008 727,500
1,350,000 Cablevision Systems Corporation 8.000 4/15/2012 1,353,375
1,000,000 Cadmus Communications Corporation 9.750 6/1/2009 1,056,250
1,386,617 Calpoint Receivable Structured Trust 7.440 12/10/2006 1,386,617
1,010,000 Canwest Media, Inc. 10.625 5/15/2011 1,143,825
300,000 CF Cable TV, Inc. 9.125 7/15/2007 312,099
500,000 Charter Communications Holdings, LLC(b) 10.000 4/1/2009 431,250
1,050,000 Charter Communications Holdings, LLC 10.250 9/15/2010 1,081,500
200,000 Charter Communications Holdings, LLC(c) Zero Coupon 1/15/2011 148,000
680,000 Charter Communications Holdings, LLC 8.750 11/15/2013 669,800
275,000 Charter Communications Holdings, LLC(d) 8.375 4/30/2014 270,875
275,000 Charter Communications Operating, LLC(d) 8.000 4/30/2012 270,875
1,055,000 Cincinnati Bell, Inc. 7.250 7/15/2013 1,023,350
500,000 Cincinnati Bell, Inc. 8.375 1/15/2014 472,500
800,000 Crown Castle International Corporation(b) 10.750 8/1/2011 908,000
400,000 CSC Holdings, Inc. 8.125 7/15/2009 427,000
600,000 CSC Holdings, Inc.(b) 7.625 4/1/2011 624,000
300,000 Dex Media West, LLC 8.500 8/15/2010 325,500
595,000 Dex Media West, LLC 9.875 8/15/2013 651,525
950,000 DirecTV Holdings, LLC 8.375 3/15/2013 1,061,625
25,000 EchoStar DBS Corporation 10.375 10/1/2007 27,031
150,000 EchoStar DBS Corporation 6.375 10/1/2011 151,688
650,000 Garden State Newspapers, Inc. 8.625 7/1/2011 682,500
225,000 General Cable Corporation 9.500 11/15/2010 246,375
650,000 Hollinger International Publishing, Inc. 9.000 12/15/2010 721,500
600,000 Insight Midwest, LP/Insight Capital, Inc. 9.750 10/1/2009 633,000
420,000 Insight Midwest, LP/Insight Capital, Inc. 10.500 11/1/2010 457,800
400,000 Mail-Well, Inc. 9.625 3/15/2012 440,000
474,230 Marconi Corporation plc(b) 8.000 4/30/2008 519,282
328,313 Marconi Corporation plc 8.000 4/30/2008 359,503
484,000 MCI, Inc.(b) 5.908 5/1/2007 478,555
484,000 MCI, Inc.(b) 6.688 5/1/2009 459,800
415,000 MCI, Inc.(b) 7.735 5/1/2014 384,912
635,000 Mediacom Broadband, LLC(b) 11.000 7/15/2013 679,450
35,714 Nextel Communications, Inc. 9.500 2/1/2011 40,625
300,000 Nextel Communications, Inc. 5.950 3/15/2014 282,000
700,000 Nextel Communications, Inc. 7.375 8/1/2015 727,125
650,000 Panamsat Corporation 8.500 2/1/2012 734,500
650,000 PRIMEDIA, Inc. 8.000 5/15/2013 641,875
700,000 Quebecor Media, Inc. 11.125 7/15/2011 805,000
1,775,000 Qwest Capital Funding, Inc. 7.900 8/15/2010 1,517,625
370,000 Qwest Capital Funding, Inc. 7.250 2/15/2011 301,550
120,000 Qwest Capital Funding, Inc. 7.750 2/15/2031 90,600
700,000 Qwest Communications International, Inc. 7.250 2/15/2011 649,250
830,000 Qwest Communications International, Inc. 7.500 2/15/2014 761,525
1,250,000 Qwest Services Corporation 13.500 12/15/2010 1,450,000
350,000 Rogers Communications, Inc., Convertible 2.000 11/26/2005 327,688
1,225,000 Rural Cellular Corporation 9.875 2/1/2010 1,258,688
675,000 Spectrasite, Inc.(b) 8.250 5/15/2010 708,750
450,000 Superior Essex Communications LLC/Essex Group, Inc. 9.000 4/15/2012 432,000
525,000 Time Warner Telecom, Inc.(b) 9.750 7/15/2008 448,875
500,000 Time Warner Telecom, Inc.(b) 10.125 2/1/2011 417,500
345,000 Triton PCS, Inc. 8.500 6/1/2013 358,800
55,000 Vivendi Universal SA 9.250 4/15/2010 64,212
817,000 Young Broadcasting, Inc.(b) 10.000 3/1/2011 861,935
- -------------------------------------------------------------------------------------------------------------------------
Total Communications Services 35,398,735
=========================================================================================================================
Consumer Cyclical (10.0%)
- -------------------------------------------------------------------------------------------------------------------------
700,000 Aearo Company I 8.250 4/15/2012 717,500
650,000 ArvinMeritor, Inc. 6.625 6/15/2007 664,625
400,000 Bombardier Recreational Products, Inc. 8.375 12/15/2013 396,000
510,000 Boyd Gaming Corporation(b) 7.750 12/15/2012 540,600
500,000 Circus & Eldorado Joint Venture/Silver Legacy
Capital Corporation 10.125 3/1/2012 507,500
600,000 Dura Operating Corporation 8.625 4/15/2012 627,000
675,000 Extended Stay America, Inc. 9.875 6/15/2011 801,562
250,000 Ferrellgas Partners, LP 6.750 5/1/2014 250,000
400,000 Ford Motor Credit Company 7.250 10/25/2011 424,444
300,000 General Motors Acceptance Corporation 7.000 2/1/2012 315,707
375,000 General Motors Acceptance Corporation 8.000 11/1/2031 395,784
300,000 General Motors Corporation 8.250 7/15/2023 321,054
750,000 Hilton Hotels Corporation(b) 7.625 12/1/2012 838,125
556,000 HMH Properties, Inc. 7.875 8/1/2008 574,070
125,000 Host Marriott, LP 9.500 1/15/2007 138,750
50,000 Host Marriott, LP 9.250 10/1/2007 56,000
700,000 Mandalay Resort Group(b) 9.375 2/15/2010 812,000
265,000 Mandalay Resort Group 7.625 7/15/2013 284,875
150,000 MGM Mirage, Inc. 6.000 10/1/2009 151,875
900,000 MGM Mirage, Inc.(b) 8.375 2/1/2011 994,500
950,000 Park Place Entertainment Corporation(b) 7.875 3/15/2010 1,026,000
90,000 Park Place Entertainment Corporation 8.125 5/15/2011 99,450
60,000 Park Place Entertainment Corporation(b) 7.000 4/15/2013 63,000
300,000 Seneca Gaming Corporation(d) 7.250 5/1/2012 304,125
750,000 Six Flags, Inc.(b) 9.750 4/15/2013 790,312
350,000 Starwood Hotels & Resorts Worldwide, Inc. 7.375 5/1/2007 376,250
500,000 Starwood Hotels & Resorts Worldwide, Inc. 7.875 5/1/2012 546,875
700,000 Station Casinos, Inc. 6.000 4/1/2012 694,750
475,000 Tenneco Automotive, Inc. 10.250 7/15/2013 547,438
300,000 True Temper Sports, Inc. 8.375 9/15/2011 307,500
628,000 TRW Automotive, Inc. 9.375 2/15/2013 719,060
700,000 Warner Music Group 7.375 4/15/2014 703,500
- -------------------------------------------------------------------------------------------------------------------------
Total Consumer Cyclical 15,990,231
=========================================================================================================================
Consumer Non-Cyclical (6.4%)
- -------------------------------------------------------------------------------------------------------------------------
700,000 Alderwoods Group, Inc. 12.250 1/2/2009 780,500
650,000 Commonwealth Brands, Inc.(d) 10.625 9/1/2008 708,500
610,000 DIMON, Inc. 9.625 10/15/2011 652,700
75,000 Dimon, Inc. 7.750 6/1/2013 73,312
575,000 Domino's, Inc. 8.250 7/1/2011 621,000
300,000 Fisher Scientific International, Inc. 8.000 9/1/2013 328,500
900,000 Fresenius Medical Care Capital Trust II 7.875 2/1/2008 977,625
175,000 Fresenius Medical Care Capital Trust IV 7.875 6/15/2011 191,625
700,000 HEALTHSOUTH Corporation 8.500 2/1/2008 710,500
250,000 HEALTHSOUTH Corporation(b) 8.375 10/1/2011 252,500
700,000 Ingles Markets, Inc.(b) 8.875 12/1/2011 726,250
211,000 PacifiCare Health Systems, Inc. 10.750 6/1/2009 245,288
575,000 Rayovac Corporation 8.500 10/1/2013 615,250
725,000 Rotech Healthcare, Inc. 9.500 4/1/2012 772,125
925,000 Roundy's, Inc. 8.875 6/15/2012 1,003,625
350,000 Tenet Healthcare Corporation(b) 6.375 12/1/2011 305,375
100,000 Tenet Healthcare Corporation 6.500 6/1/2012 86,750
1,245,000 Tenet Healthcare Corporation(b) 7.375 2/1/2013 1,126,725
35,714 Triad Hospitals, Inc. 8.750 5/1/2009 39,598
- -------------------------------------------------------------------------------------------------------------------------
Total Consumer Non-Cyclical 10,217,748
=========================================================================================================================
Energy (4.2%)
- -------------------------------------------------------------------------------------------------------------------------
450,000 Amerigas Partners, LP(d,e) 8.830 4/19/2010 486,000
800,000 Dresser, Inc. 9.375 4/15/2011 864,000
75,000 Evergreen Resources, Inc. 5.875 3/15/2012 74,250
725,000 EXCO Resources, Inc. 7.250 1/15/2011 732,250
1,050,000 Hanover Equipment Trust(b) 8.500 9/1/2008 1,113,000
550,000 Newpark Resources, Inc. 8.625 12/15/2007 565,125
600,000 SESI, LLC 8.875 5/15/2011 649,500
543,534 South Point Energy Center, LLC/Broad River Energy,
LLC/Rockgen Energy, LLC 8.400 5/30/2012 494,616
450,000 Vintage Petroleum, Inc. 7.875 5/15/2011 477,000
350,000 Vintage Petroleum, Inc. 8.250 5/1/2012 383,250
800,000 Western Gas Resources, Inc. 10.000 6/15/2009 840,000
- -------------------------------------------------------------------------------------------------------------------------
Total Energy 6,678,991
=========================================================================================================================
Financials (4.5%)
- -------------------------------------------------------------------------------------------------------------------------
700,000 Bluewater Finance, Ltd. 10.250 2/15/2012 724,500
544,740 Cedar Brakes II, LLC 9.875 9/1/2013 544,740
550,000 Choctaw Resort Development Enterprise 9.250 4/1/2009 595,375
845,000 FINOVA Group, Inc. 7.500 11/15/2009 504,888
900,000 Gemstone Investor, Ltd. 7.710 10/31/2004 910,125
75,000 Host Marriott, LP 7.125 11/1/2013 76,125
1,272 Lehman Brothers, Inc.(f) 8.676 5/15/2013 1,388
650,000 Lehman Brothers, Inc.(f) 9.051 6/1/2014 628,010
1,100,000 North Atlantic Holdings(c) Zero Coupon 3/1/2014 649,000
875,000 Riggs Capital Trust II 8.875 3/15/2027 879,375
350,000 Universal City Development Services 11.750 4/1/2010 404,250
800,000 Ventas Realty, LP, Capital Corporation 8.750 5/1/2009 896,000
300,000 VWR International, Inc. 8.000 4/15/2014 312,000
- -------------------------------------------------------------------------------------------------------------------------
Total Financials 7,125,776
=========================================================================================================================
Foreign (5.7%)
- -------------------------------------------------------------------------------------------------------------------------
1,000,000 Federal Republic of Brazil 2.063 4/15/2006 962,500
2,305,000 Federal Republic of Brazil 10.000 8/7/2011 2,235,850
750,000 Federal Republic of Brazil 11.000 8/17/2040 697,500
325,000 Republic of Guatemala 9.250 8/1/2013 360,750
250,000 Republic of Panama 9.625 2/8/2011 283,750
475,000 Republic of Panama 9.375 7/23/2012 536,750
250,000 Republic of Panama 9.375 4/1/2029 275,000
1,100,000 Republic of Peru 9.125 2/21/2012 1,155,000
750,750 Republic of Peru(f) 5.000 3/7/2017 658,783
1,300,000 Russian Federation(c) 5.000 3/31/2030 1,192,100
266,005 Ukraine Government 11.000 3/15/2007 290,211
100,000 Ukraine Government(b) 6.875 3/4/2011 96,500
375,000 Ukraine Government 6.875 3/4/2011 358,688
- -------------------------------------------------------------------------------------------------------------------------
Total Foreign 9,103,382
=========================================================================================================================
Other (1.1%)
- -------------------------------------------------------------------------------------------------------------------------
300,000 Invensys plc 9.875 3/15/2011 316,500
550,000 Johnsondiversey, Inc.(b) 9.625 5/15/2012 602,250
650,000 SPX Corporation 7.500 1/1/2013 687,375
200,000 Tenneco Automotive, Inc. 10.250 7/15/2013 230,500
- -------------------------------------------------------------------------------------------------------------------------
Total Other 1,836,625
=========================================================================================================================
Transportation (1.6%)
- -------------------------------------------------------------------------------------------------------------------------
481,946 Continental Airlines, Inc. 7.373 12/15/2015 420,656
590,935 Continental Airlines, Inc. 6.545 2/2/2019 575,629
700,000 Dunlop Standard Aerospace Holdings plc 11.875 5/15/2009 740,250
225,000 JET Equipment Trust(g) 10.000 6/15/2012 171,000
241,687 JET Equipment Trust(g) 7.630 8/15/2012 197,879
600,000 United Air Lines, Inc.(h) 6.602 9/1/2013 530,873
- -------------------------------------------------------------------------------------------------------------------------
Total Transportation 2,636,287
=========================================================================================================================
Utilities (15.3%)
- -------------------------------------------------------------------------------------------------------------------------
475,000 AES Corporation(b) 8.875 2/15/2011 498,750
1,400,000 AES Corporation 8.750 5/15/2013 1,522,501
705,454 AES Ironwood, LLC 8.857 11/30/2025 768,945
263,914 AES Red Oak, LLC 8.540 11/30/2019 285,027
400,000 AmeriGas Eagle Finance Corporation 10.000 4/15/2006 438,000
625,000 Calpine Corporation(b) 8.500 7/15/2010 553,125
100,000 Calpine Corporation(b) 8.750 7/15/2013 88,500
800,000 CMS Energy Corporation 7.000 1/15/2005 808,000
650,000 CMS Energy Corporation 7.500 1/15/2009 654,875
225,000 CMS Energy Corporation(b) 7.750 8/1/2010 227,250
100,000 CMS Energy Corporation 8.500 4/15/2011 104,750
100,000 Dynegy Holdings, Inc. 9.875 7/15/2010 108,500
100,000 Dynegy Holdings, Inc. 10.125 7/15/2013 109,500
1,125,000 Dynegy-Roseton Danskamme 7.270 11/8/2010 1,074,375
275,000 Dynegy-Roseton Danskamme 7.670 11/8/2016 247,500
400,000 Edison International, Inc. 6.875 9/15/2004 405,500
700,000 Edison Midwest Generation, LLC 8.300 7/2/2009 714,000
975,000 Edison Midwest Generation, LLC 8.560 1/2/2016 999,375
450,000 El Paso CGP Company 7.500 8/15/2006 429,750
375,000 El Paso CGP Company(b) 6.500 6/1/2008 320,625
500,000 El Paso CGP Company 7.625 9/1/2008 442,500
350,000 El Paso CGP Company 7.750 6/15/2010 302,750
200,000 El Paso CGP Company 9.625 5/15/2012 187,000
400,000 El Paso Corporation(b) 7.875 6/15/2012 352,000
1,005,000 El Paso Corporation(b) 7.375 12/15/2012 859,275
168,000 El Paso Energy Partners, LP 8.500 6/1/2011 185,640
75,000 El Paso Natural Gas Corporation 7.625 8/1/2010 77,250
775,000 Ferrellgas Partners, LP 8.750 6/15/2012 848,625
72,000 Gulfterra Energy Partner 8.500 6/1/2010 80,280
150,000 Ipalco Enterprises, Inc. 8.375 11/14/2008 166,500
500,000 Ipalco Enterprises, Inc. 8.625 11/14/2011 555,000
550,000 Leviathan Finance Corporation 10.375 6/1/2009 574,750
350,000 Midwest Generation, LLC 8.750 5/1/2034 348,250
1,275,000 NRG Energy, Inc. 8.000 12/15/2013 1,284,562
450,000 PSE&G Energy Holdings, Inc. 7.750 4/16/2007 470,250
300,000 PSE&G Energy Holdings, Inc. 10.000 10/1/2009 345,000
900,000 PSE&G Energy Holdings, Inc. 8.500 6/15/2011 985,500
330,000 Reliant Resources, Inc. 9.250 7/15/2010 353,100
325,000 Reliant Resources, Inc. 9.500 7/15/2013 352,625
537,696 Rocky River Private Placement(d,e) 8.810 4/14/2007 576,760
550,000 Sonat, Inc. 7.625 7/15/2011 475,750
700,000 Teco Energy, Inc.(b) 7.500 6/15/2010 715,750
575,000 Transmontaigne, Inc. 9.125 6/1/2010 592,250
1,300,000 Williams Companies, Inc. 8.625 6/1/2010 1,430,000
610,000 Williams Companies, Inc. 7.625 7/15/2019 594,750
475,000 Williams Companies, Inc. 7.875 9/1/2021 463,125
525,000 Williams Companies, Inc. 8.750 3/15/2032 535,500
- -------------------------------------------------------------------------------------------------------------------------
Total Utilities 24,513,590
- -------------------------------------------------------------------------------------------------------------------------
Total Long-Term Fixed Income (cost $125,653,546) 129,182,931
=========================================================================================================================
Shares Preferred Stock (0.1%) Value
- -------------------------------------------------------------------------------------------------------------------------
1,200 Dobson Communications Corporation (e) $142,499
- -------------------------------------------------------------------------------------------------------------------------
Total Preferred Stock (cost $206,400) 142,499
=========================================================================================================================
Shares Common Stock (0.8%) Value
- -------------------------------------------------------------------------------------------------------------------------
1 Abraxas Petroleum Corporation(i) $2
750 Arcadia Financial, Ltd., Stock Warrants (e,i) 8
4,441 ICG Communications, Inc.(b,i) 22,516
735 ICG Communications, Inc., Stock Rights(i) 184
23,289 MCI, Inc.(i) 333,498
3 Orion Refining Corporation (e,i) 0
862,250 SSgA Money Market Fund 862,250
500 Unifi Communications, Inc., Stock Warrants (d,e,i) 5
- -------------------------------------------------------------------------------------------------------------------------
Total Common Stock (cost $1,470,984) 1,218,463
=========================================================================================================================
Shares Collateral Held for Securities Loaned (12.8%) Interest Rate Maturity Date Value
- -------------------------------------------------------------------------------------------------------------------------
20,375,644 State Street Navigator Securities Lending Prime
Portfolio 1.070% N/A $20,375,644
- -------------------------------------------------------------------------------------------------------------------------
Total Collateral Held for Securities Loaned (cost
$20,375,644) 20,375,644
=========================================================================================================================
Principal Maturity
Amount Short-Term Investments (5.6%) Interest Rate (j) Date Value
- -------------------------------------------------------------------------------------------------------------------------
$1,100,000 European Investment Bank 1.053% 7/16/2004 $1,097,562
400,000 Federal National Mortgage Association(b) 1.007 6/30/2004 399,317
1,500,000 Federal National Mortgage Association(b) 1.028 7/7/2004 1,497,139
3,900,000 General Electric Capital Corporation 1.043 6/15/2004 3,894,930
300,000 General Electric Capital Corporation 1.042 6/17/2004 299,593
100,000 General Electric Capital Corporation 1.053 7/13/2004 99,787
1,600,000 U.S. Treasury Repurchase Notes 0.920 5/3/2004 1,600,000
- -------------------------------------------------------------------------------------------------------------------------
Total Short-Term Investments (at amortized cost) 8,888,328
- -------------------------------------------------------------------------------------------------------------------------
Total Investments (cost $156,594,902) $159,807,865
=========================================================================================================================
(a) The categories of investments are shown as apercentage of total
investments.
(b) All or a portion of the security is on loan as discussed in item 2(L)
of the Notes to Financial Statements.
(c) Denotes step coupon bonds for which the current interest rate and next
scheduled reset date are shown.
(d) Denotes restricted securities. Restricted securities are investment
securities which cannot be offered for public sale without first being
registered under the Securities Act of 1933. These securities have been
valued from the date of acquisition through April 30, 2004, by obtaining
quotations from brokers active with these securities. The following table
indicates the acquisition date and cost of restricted securities the Fund
owned as of April 30, 2004.
Acquisition
Security Date Cost
- -------------------------------------------------------------------------------------------------------------------------
Amerigas Partners, LP 5/10/2002 $458,432
Charter Communications Operating LLC 4/20/2004 275,000
Charter Communications Operating LLC 4/20/2004 275,000
Commonwealth Brands, Inc. 7/30/2003 644,369
Rocky River Private Placement 12/12/2000 532,105
Seneca Gaming Corporation 4/29/2004 300,000
Unifi Communications, Inc. Warrants 2/14/1997 6,525
(e) Security is fair valued as discussed in the notes to the financial
statements.
(f) Denotes variable rate obligations for which the current yield and next
scheduled reset date are shown.
(g) In default.
(h) In bankruptcy.
(i) Non-income producing security.
(j) The interest rate shown reflects the yield or, for securities purchased
at a discount, the discount rate at the date of purchase.
The accompanying notes to the financial statements
are an integral part of this schedule.
The AAL Municipal Bond Fund
Schedule of Investments as of April 30, 2004 (a)
Principal
Amount Long-Term Fixed Income (99.1%) Interest Rate Maturity Date Value
- -------------------------------------------------------------------------------------------------------------------------
Alabama (0.2%)
- -------------------------------------------------------------------------------------------------------------------------
$1,000,000 Alabama 21st Century Authority Tobacco Settlement
Revenue Bonds 5.750% 12/1/2020 $1,009,630
- -------------------------------------------------------------------------------------------------------------------------
Total Alabama 1,009,630
=========================================================================================================================
Alaska (0.5%)
- -------------------------------------------------------------------------------------------------------------------------
3,615,000 Northern Tobacco Securitization Corporation Alaska
Tobacco Settlement Revenue Bonds 6.200 6/1/2022 3,473,654
- -------------------------------------------------------------------------------------------------------------------------
Total Alaska 3,473,654
=========================================================================================================================
Arizona (1.1%)
- -------------------------------------------------------------------------------------------------------------------------
750,000 Arizona Health Facilities Authority Revenue Bonds
(Arizona Healthcare Pooled Financing) (FGIC Insured) 4.000 6/1/2005 770,348
780,000 Arizona Health Facilities Authority Revenue Bonds
(Arizona Healthcare Pooled Financing) (FGIC Insured) 4.250 6/1/2006 816,091
815,000 Arizona Health Facilities Authority Revenue Bonds
(Arizona Healthcare Pooled Financing) (FGIC Insured) 4.500 6/1/2007 864,886
975,000 Arizona Health Facilities Authority Revenue Bonds
(Arizona Healthcare Pooled Financing) (FGIC Insured) 5.000 6/1/2011 1,055,779
1,020,000 Arizona Health Facilities Authority Revenue Bonds
(Arizona Healthcare Pooled Financing) (FGIC Insured) 5.000 6/1/2012 1,097,948
1,000,000 Maricopa County, Arizona Elementary School District
#068 Alhambra General Obligation Bonds (AMBAC
Insured)(b) 5.125 7/1/2012 1,026,510
180,000 Phoenix, Arizona Industrial Development Authority
Single Family Mortgage Revenue Bonds (Series 1A)
(GNMA/FNMA/FHLMC Insured) 5.875 6/1/2016 184,016
1,285,000 Pima County, Arizona Industrial Development Authority
Multifamily Bonds (La Hacienda Project) (GNMA/FHA
Insured) 7.000 12/20/2031 1,376,106
- -------------------------------------------------------------------------------------------------------------------------
Total Arizona 7,191,684
=========================================================================================================================
Arkansas (0.3%)
- -------------------------------------------------------------------------------------------------------------------------
1,400,000 Arkansas State Community Water System Public Water
Authority Revenue (Series B) (MBIA Insured) 5.000 10/1/2023 1,417,374
487,500 Arkansas State Development Finance Authority Single
Family Mortgage Revenue Bonds (Series F) (GNMA
Insured) (Subject to 'AMT') 7.450 1/1/2027 494,028
- -------------------------------------------------------------------------------------------------------------------------
Total Arkansas 1,911,402
=========================================================================================================================
California (10.8%)
- -------------------------------------------------------------------------------------------------------------------------
495,000 California Rural Home Mortgage Finance Authority
Single Family Mortgage Revenue Bonds (Series D)
(GNMA/FNMA Insured)(Subject to 'AMT') 7.100 6/1/2031 514,652
5,000,000 California State Department of Water Resources Supply
Revenue Bonds (Series A) (AMBAC Insured) 5.375 5/1/2018 5,338,250
5,000,000 California State General Obligation 5.250 12/1/2019 5,167,500
2,000,000 California State General Obligation 5.250 9/1/2022 2,038,280
5,000,000 California State General Obligation Bonds 5.125 2/1/2027 4,859,150
2,000,000 California State Revenue General Obligation Bonds 5.250 11/1/2021 2,028,860
4,030,000 Contra Costa County, California Home Mortgage
Revenue Bonds (GNMA Insured) (Escrowed to
Maturity)(b) 7.500 5/1/2014 5,205,269
1,335,000 Foothill/Eastern Transportation Corridor Agency
California Toll Road Revenue Bonds (Series A)(b) Zero Coupon 1/1/2005 1,322,852
5,000,000 Foothill/Eastern Transportation Corridor Agency
California Toll Road Revenue Bonds (Series A)(b) Zero Coupon 1/1/2009 5,604,300
5,000,000 Foothill/Eastern Transportation Corridor Agency
California Toll Road Revenue Bonds (Series A)(b) Zero Coupon 1/1/2011 5,773,250
6,000,000 Foothill/Eastern Transportation Corridor Agency
California Toll Road Revenue Bonds (Series A)(b) Zero Coupon 1/1/2013 6,941,280
7,145,000 Foothill/Eastern Transportation Corridor Agency
California Toll Road Revenue Bonds (Series A)(b) Zero Coupon 1/1/2014 8,265,908
420,000 Golden West Schools Financing Authority California
Revenue Bonds (Series A) (MBIA Insured) 5.800 2/1/2022 476,259
740,000 Los Angeles, California Department of Water and
Power Electric Plant Revenue Bonds(b) 6.100 2/15/2017 775,305
260,000 Los Angeles, California Department of Water and
Power Electric Plant Unrefunded Revenue Bonds(b) 6.100 2/15/2017 272,405
2,000,000 Los Angeles, California Unified School District
Revenue Bonds (MBIA-Series A) 5.000 7/1/2021 2,050,600
4,200,000 Pomona, California Single Family Mortgage
Revenue Bonds (Series A) (GNMA/FNMA Insured)(b) 7.600 5/1/2023 5,408,718
3,480,000 Sacramento County, California Single Family Mortgage
Revenue Bonds (Subject to 'AMT')(b) 8.250 1/1/2021 4,836,434
1,500,000 San Bernardino County, California Single Family
Mortgage Revenue Bonds (Series A) (GNMA Insured)(b) 7.500 5/1/2023 1,924,965
- -------------------------------------------------------------------------------------------------------------------------
Total California 68,804,237
=========================================================================================================================
Colorado (5.8%)
- -------------------------------------------------------------------------------------------------------------------------
2,000,000 Colorado Educational and Cultural Facilities
Authority Revenue Bonds (Bromley East Project)
(Series A) 7.250 9/15/2030 1,980,800
570,000 Colorado Educational and Cultural Facilities
Authority Revenue Bonds (Cherry Creek Academy
Facility, Inc.) 6.000 4/1/2021 571,414
1,280,000 Colorado Educational and Cultural Facilities
Authority Revenue Bonds (Cherry Creek Academy
Facility, Inc.) 6.000 4/1/2030 1,279,578
2,825,000 Colorado Educational and Cultural Facilities
Authority Revenue Bonds (Classical Academy)(b) 7.250 12/1/2030 3,522,125
835,000 Colorado Educational and Cultural Facilities
Authority Revenue Bonds (Pinnacle Charter School
Project)(b) 5.250 12/1/2011 901,349
750,000 Colorado Educational and Cultural Facilities
Authority Revenue Bonds (University Lab School
Project) 6.125 6/1/2021 751,710
5,250,000 Colorado Educational and Cultural Facilities
Authority Revenue Bonds (University Lab School
Project) 6.250 6/1/2031 5,257,350
1,000,000 Colorado Health Facilities Authority Revenue Bonds
(Evangelical Lutheran Good Samaritan) 6.250 12/1/2010 1,116,570
2,000,000 Colorado Health Facilities Authority Revenue Bonds
(Evangelical Lutheran Good Samaritan) 6.800 12/1/2020 2,162,380
350,000 Colorado Housing and Finance Authority Revenue Bonds
(Single Family Program) (Series A-2) (Subject to
'AMT') 7.450 10/1/2016 354,655
215,000 Colorado Housing and Finance Authority Revenue Bonds
(Single Family Program) (Series A-3) 7.250 4/1/2010 221,031
1,440,000 Colorado Housing and Finance Authority Revenue Bonds
(Single Family Program) (Series B-3) 6.700 8/1/2017 1,503,806
225,000 Colorado Housing and Finance Authority Revenue Bonds
(Single Family Program) (Series C-3) (FHA/VA Insured) 7.150 10/1/2030 228,575
3,950,000 Colorado River, Texas Municipal Water District
Revenue Bonds (MBIA Insured) 5.000 1/1/2014 4,099,863
3,525,000 Colorado Water Resources and Power Development
Authority Small Water Resources Revenue Bonds
(Series A) (FGIC Insured) 5.250 11/1/2021 3,700,334
200,000 Denver, Colorado Health and Hospital Authority
Healthcare Revenue Bonds (Series A) 5.250 12/1/2010 205,536
200,000 Denver, Colorado Health and Hospital Authority
Healthcare Revenue Bonds (Series A) 5.250 12/1/2011 203,116
2,000,000 Denver, Colorado Health and Hospital Authority
Healthcare Revenue Bonds (Series A) (ACA/ CBI
Insured) 6.250 12/1/2016 2,094,320
4,000,000 Northwest Parkway Public Highway Authority Colorado
Capital Appreciation Revenue Bonds (Series C) (AMBAC
Insured) Zero Coupon 6/15/2021 2,908,200
3,500,000 Regional Transportation District, Colorado, Sales
Tax Revenue Bonds (Series B) (AMBAC Insured) 5.500 11/1/2021 3,786,510
- -------------------------------------------------------------------------------------------------------------------------
Total Colorado 36,849,222
=========================================================================================================================
Connecticut (0.3%)
- -------------------------------------------------------------------------------------------------------------------------
2,000,000 Connecticut State Health and Educational Facilities
Authority Revenue (Yale University) (Series W) 5.125 7/1/2027 2,031,320
- -------------------------------------------------------------------------------------------------------------------------
Total Connecticut 2,031,320
=========================================================================================================================
District of Columbia (1.1%)
- -------------------------------------------------------------------------------------------------------------------------
7,845,000 District of Columbia Tobacco Settlement Financing
Corporation Revenue Bonds 6.250 5/15/2024 7,326,132
- -------------------------------------------------------------------------------------------------------------------------
Total District of Columbia 7,326,132
=========================================================================================================================
Florida (2.7%)
- -------------------------------------------------------------------------------------------------------------------------
984,000 Brevard County, Florida Housing Finance Authority
Homeowner Mortgage Revenue Bonds (Series B) (GNMA
Insured) 6.500 9/1/2022 1,022,051
2,105,000 Clay County, Florida Housing Finance Authority
Single Family Mortgage Revenue Bonds (GNMA/FNMA
Insured) (Subject to 'AMT') 6.000 4/1/2029 2,149,794
620,000 Florida State Board of Education Capital Outlay
Unrefunded General Obligation Bonds (MBIA Insured) 9.125 6/1/2014 871,639
2,000,000 Highlands County, Florida Health Facilities Authority
Revenue Bonds (Adventist Health System/Sunbelt, Inc.)
(Series A) 6.000 11/15/2031 2,099,520
1,145,000 Leon County, Florida Educational Facilities Authority
Certificates of Participation(b) 8.500 9/1/2017 1,631,648
460,000 Manatee County, Florida Housing Finance Authority
Single Family Mortgage Revenue Bonds (Series 1)
(GNMA/FNMA/ FHLMC Insured) (Subject to 'AMT') 7.200 5/1/2028 465,469
1,320,000 Orange County, Florida Health Facilities Authority
Revenue Bonds (Adventist Health Systems) 5.750 11/15/2008 1,461,042
1,000,000 Orange County, Florida Health Facilities Authority
Revenue Bonds (Adventist Health Systems) 5.850 11/15/2010 1,116,860
2,000,000 Orange County, Florida Health Facilities Authority
Revenue Bonds (Orlando Regional Healthcare System)
(Series A) (MBIA Insured) 6.250 10/1/2018 2,330,660
1,425,000 Orange County, Florida Housing Finance Authority
Homeowner Revenue Bonds (Series B-1) (GNMA/FNMA
Insured) (Subject to 'AMT') 5.900 9/1/2028 1,477,625
830,000 Palm Beach County, Florida Housing Finance Authority
Single Family Homeowner Revenue Bonds (Series A-1)
(GNMA/FNMA Insured) (Subject to 'AMT') 5.900 10/1/2027 860,652
805,000 Pinellas County, Florida Housing Finance Authority
Single Family Housing Revenue Bonds (Multi-County
Program) (Series B-1) (Subject to 'AMT') 7.250 9/1/2029 822,018
1,075,000 Pinellas County, Florida Housing Finance Authority
Single Family Housing Revenue Bonds (Series A-1)
(GNMA/FNMA Insured) (Subject to 'AMT') 7.200 9/1/2029 1,142,768
- -------------------------------------------------------------------------------------------------------------------------
Total Florida 17,451,746
=========================================================================================================================
Georgia (0.3%)
- -------------------------------------------------------------------------------------------------------------------------
1,500,000 Savannah, Georgia Economic Development Authority
Student Housing Revenue Bonds (State University
Project) (Series A)(ACA Insured) 6.750 11/15/2020 1,632,915
- -------------------------------------------------------------------------------------------------------------------------
Total Georgia 1,632,915
=========================================================================================================================
Hawaii (1.3%)
- -------------------------------------------------------------------------------------------------------------------------
5,000,000 Honolulu Hawaii City & County (Series A) (FSA
Insured) 5.250 3/1/2027 5,121,150
2,555,000 Honolulu, Hawaii City & County Revenue Bonds
(Unrefunded Balance) (Series A) (FGIC Insured) 6.250 4/1/2014 2,999,749
- -------------------------------------------------------------------------------------------------------------------------
Total Hawaii 8,120,899
=========================================================================================================================
Illinois (10.4%)
- -------------------------------------------------------------------------------------------------------------------------
2,000,000 Broadview, Illinois Tax Increment Tax Allocation
Bonds 5.250 7/1/2012 2,067,860
1,000,000 Broadview, Illinois Tax Increment Tax Allocation
Revenue Bonds 5.375 7/1/2015 1,024,800
175,000 Chicago, Illinois Single Family Mortgage
Revenue Bonds (Series A) (GNMA/FNMA/FHLMC Insured)
(Subject to 'AMT') 7.250 9/1/2028 177,816
1,090,000 Chicago, Illinois Single Family Mortgage
Revenue Bonds (Series C) (GNMA/FNMA/FHLMC Insured)
(Subject to 'AMT') 7.050 10/1/2030 1,122,711
400,000 Chicago, Illinois Single Family Mortgage
Revenue Bonds (Series C) (GNMA/FNMA/FHLMC Insured)
(Subject to 'AMT') 7.000 3/1/2032 407,048
7,200,000 Chicago, Illinois Tax Increment Capital Appreciation
Tax Allocation Bonds (Series A) (ACA Insured) Zero Coupon 11/15/2014 4,133,592
1,000,000 Cook County, Illinois Community Consolidated School
District #15 Palatine Capital Appreciation General
Obligation Bonds (FGIC Insured) Zero Coupon 12/1/2014 611,940
1,250,000 Cook County, Illinois School District #99 Cicero
General Obligation Bonds (FGIC Insured) 8.500 12/1/2011 1,642,438
1,565,000 Cook County, Illinois School District #99 Cicero
General Obligation Bonds (FGIC Insured) 8.500 12/1/2014 2,137,571
1,815,000 Cook County, Illinois School District #99 Cicero
General Obligation Bonds (FGIC Insured) 8.500 12/1/2016 2,536,154
1,000,000 Du Page County, Illinois General Obligation Bonds
(Stormwater Project) 5.600 1/1/2021 1,107,360
1,000,000 Illinois Development Finance Authority Revenue Bonds
(Midwestern University) (Series B) 6.000 5/15/2021 1,068,740
2,365,000 Illinois Development Finance Authority Revenue Bonds
(School District #304) (Series A) (FSA Insured) Zero Coupon 1/1/2021 988,239
4,900,000 Illinois Educational Facilities Authority
Revenue Bonds (Northwestern University) 5.250 11/1/2032 5,330,955
380,000 Illinois Health Facilities Authority Prerefunded
Revenue Bonds (Series B) (MBIA/IBC Insured) 5.250 8/15/2018 423,905
1,600,000 Illinois Health Facilities Authority Revenue Bonds
(Bethesda Home and Retirement)/(Series A) 6.250 9/1/2014 1,680,688
2,000,000 Illinois Health Facilities Authority Revenue Bonds
(Centegra Health Systems) 5.250 9/1/2018 1,984,900
2,500,000 Illinois Health Facilities Authority Revenue Bonds
(Passavant Memorial Area Hospital Association) 6.000 10/1/2024 2,547,475
1,000,000 Illinois Health Facilities Authority Revenue Bonds
(Riverside Health System) 6.850 11/15/2029 1,070,320
4,180,000 Illinois Health Facilities Authority Revenue Bonds
(Rush-Presbyterian-St. Lukes) (Series A) (MBIA
Insured) 5.250 11/15/2014 4,474,356
1,995,000 Illinois Health Facilities Authority Revenue Bonds
(Swedish American Hospital) 6.875 11/15/2030 2,129,722
4,655,000 Illinois Health Facilities Authority Revenue Bonds
(Thorek Hospital and Medical Center) 5.250 8/15/2018 4,353,868
2,120,000 Illinois Health Facilities Authority Unrefunded
Revenue Bonds (Series B) (MBIA/IBC Insured) 5.250 8/15/2018 2,246,098
3,065,000 Illinois State Sales Tax Revenue Bonds (Series L) 7.450 6/15/2012 3,807,956
3,035,000 McHenry County, Illinois Community High School
District #157 General Obligation Bonds (FSA Insured) 9.000 12/1/2017 4,426,608
4,000,000 McLean County, Illinois Bloomington -- Normal
Airport Central Illinois Regional Authority
Revenue Bonds (Subject to 'AMT') 6.050 12/15/2019 3,773,560
885,000 Metropolitan Pier and Exposition Authority Illinois
State Tax Revenue Bonds (McCormick Place Exposition
Project) (Series A) (FGIC Insured) 5.500 6/15/2015 980,191
1,115,000 Metropolitan Pier and Exposition Authority Illinois
State Tax Revenue Bonds (McCormick Place Exposition
Project) (Series A)(b) 5.500 6/15/2015 1,255,267
3,100,000 Metropolitan Pier and Exposition Authority Illinois
State Tax Revenue Bonds (McCormick Place Exposition
Project) (Series A) (MBIA Insured) Zero Coupon 6/15/2024 1,033,106
2,000,000 Metropolitan Pier and Exposition Authority Illinois
State Tax Revenue Bonds (McCormick Place Exposition
Project) (Series A) (MBIA Insured) Zero Coupon 12/15/2024 648,560
2,000,000 Metropolitan Pier and Exposition Authority Illinois
State Tax Revenue Bonds (McCormick Place Exposition
Project) (Series B) (MBIA Insured)(c) Zero Coupon 6/15/2020 1,377,160
3,000,000 Regional Transportation Authority Illinois
Revenue Bonds (Series A) (FGIC Insured) 6.700 11/1/2021 3,645,600
- -------------------------------------------------------------------------------------------------------------------------
Total Illinois 66,216,564
=========================================================================================================================
Indiana (1.8%)
- -------------------------------------------------------------------------------------------------------------------------
1,250,000 East Chicago, Indiana Elementary School Building
Corporation Revenue Bonds 6.250 1/5/2016 1,437,738
285,000 Indiana State Housing Authority Single Family
Mortgage Revenue Bonds (Series C-2) (GNMA Insured) 5.250 7/1/2017 287,214
510,000 Indiana Transportation Finance Authority Airport
Facilities Lease Revenue Bonds (Series A) 5.400 11/1/2006 545,216
250,000 Indiana Transportation Finance Authority Highway
Revenue Bonds (Series A) 6.800 12/1/2016 300,025
570,000 Indiana Transportation Finance Authority Highway
Revenue Bonds (Series A) (AMBAC Insured)(b) 5.750 6/1/2012 651,248
985,000 Indiana Transportation Finance Authority Highway
Revenue Bonds (Series A) (MBIA/IBC Insured)(b) 7.250 6/1/2015 1,189,614
3,565,000 Indiana Transportation Finance Authority Highway
Unrefunded Revenue Bonds (Series A) (MBIA/IBC
Insured) 7.250 6/1/2015 4,401,456
2,500,000 Petersburg, Indiana Industrial Pollution Control
Revenue Bonds (Indianapolis Power and Light Company)
(Series A) (MBIA/IBC Insured) 6.100 1/1/2016 2,534,725
- -------------------------------------------------------------------------------------------------------------------------
Total Indiana 11,347,236
=========================================================================================================================
Kansas (1.2%)
- -------------------------------------------------------------------------------------------------------------------------
4,140,000 Kansas City, Kansas Utility System Unrefunded
Revenue Bonds (FGIC Insured)(b) 6.375 9/1/2023 4,295,250
890,000 Sedgwick and Shawnee Counties, Kansas Single Family
Mortgage Revenue Bonds (Series A-2) (GNMA Insured) 6.700 6/1/2029 939,537
2,300,000 University of Kansas Hospital Authority Health
Facilities Revenue Bond 5.500 9/1/2022 2,332,430
- -------------------------------------------------------------------------------------------------------------------------
Total Kansas 7,567,217
=========================================================================================================================
Louisiana (2.4%)
- -------------------------------------------------------------------------------------------------------------------------
2,055,000 Jefferson Parish, Louisiana Home Mortgage Authority
Single Family Mortgage Revenue Bonds (Series A-2)
(GNMA/FNMA Insured) (Subject to 'AMT') 7.500 12/1/2030 2,175,033
715,000 Jefferson Parish, Louisiana Home Mortgage Authority
Single Family Mortgage Revenue Bonds (Series D-1)
(GNMA/FNMA Insured) (Subject to 'AMT') 7.500 6/1/2026 753,038
1,105,000 Louisiana Housing Finance Agency Single Family
Mortgage Revenue Bonds (Series A-2) (GNMA/FNMA/FHLMC
Insured) (Subject to 'AMT') 7.800 12/1/2026 1,172,637
720,000 Louisiana Housing Finance Agency Single Family
Mortgage Revenue Bonds (Series D-2) (GNMA/FNMA
Insured) (Subject to 'AMT') 7.050 6/1/2031 762,257
3,000,000 Louisiana Public Facilities Authority Hospital
Revenue Bonds (Lake Charles Memorial) (AMBAC/TCRS
Insured) 8.625 12/1/2030 3,803,250
2,605,000 Regional Transportation Authority Louisiana Sales
Tax Revenue Bonds (Series A) (FGIC Insured) 8.000 12/1/2012 3,369,125
4,200,000 Tobacco Settlement Financing Corporation, Louisiana
Revenue Bonds (Series 2001-B) 5.500 5/15/2030 3,577,728
- -------------------------------------------------------------------------------------------------------------------------
Total Louisiana 15,613,068
=========================================================================================================================
Maryland (0.3%)
- -------------------------------------------------------------------------------------------------------------------------
1,550,000 Maryland State Economic Development Corporation
Student Housing Revenue Bonds (Sheppard Pratt) (ACA
Insured) 6.000 7/1/2033 1,630,073
185,000 Prince Georges County, Maryland Housing Authority
Single Family Mortgage Revenue Bonds (Series A)
(GNMA/FNMA/ FHLMC Insured) (Subject to 'AMT') 7.400 8/1/2032 186,832
425,000 Westminster, Maryland Education Facilities
Revenue Bond (McDaniel College) 5.500 4/1/2027 422,798
- -------------------------------------------------------------------------------------------------------------------------
Total Maryland 2,239,703
=========================================================================================================================
Massachusetts (1.4%)
- -------------------------------------------------------------------------------------------------------------------------
4,935,000 Massachusetts State Construction Lien General
Obligation Bonds (Series A) (FGIC-TCRS) 5.250 1/1/2013 5,395,041
725,000 Massachusetts State Development Finance Agency
Revenue Bonds (Devens Electric Systems) 5.625 12/1/2016 764,041
1,000,000 Massachusetts State Health and Educational Facilities
Authority Revenue Bonds (Partners Healthcare System)
(Series C) 6.000 7/1/2016 1,099,470
1,170,000 Westfield, Massachusetts General Obligation Bonds
(FGIC Insured)(b) 6.500 5/1/2014 1,385,771
- -------------------------------------------------------------------------------------------------------------------------
Total Massachusetts 8,644,323
=========================================================================================================================
Michigan (3.2%)
- -------------------------------------------------------------------------------------------------------------------------
515,000 Chelsea, Michigan Economic Development Corporation
Obligation Revenue Bonds (United Methodist
Retirement) 4.800 11/15/2005 510,664
545,000 Chelsea, Michigan Economic Development Corporation
Obligation Revenue Bonds (United Methodist
Retirement) 4.900 11/15/2006 536,367
3,965,000 Chelsea, Michigan Economic Development Corporation
Obligation Revenue Bonds (United Methodist
Retirement) 5.400 11/15/2027 3,480,556
2,000,000 East Lansing, Michigan Building Authority General
Obligation Bonds 5.700 4/1/2020 2,272,860
1,000,000 Grand Valley, Michigan State University Revenue Bonds
(MBIA Insured) 5.250 10/1/2017 1,062,400
135,000 Hillsdale, Michigan Hospital Finance Authority
Revenue Bonds (Hillsdale Community Health Center) 4.800 5/15/2005 134,437
1,380,000 Michigan Public Power Agency Revenue Bonds
(Combustion Turbine #1 Project) (Series A)/ (AMBAC
Insured) 5.250 1/1/2016 1,478,753
950,000 Michigan State Hospital Finance Authority
Revenue Bonds (Hackley Hospital) (Series A) 4.800 5/1/2005 972,334
6,580,000 Michigan State Hospital Finance Authority
Revenue Bonds (Oakwood Obligated Group) 5.000 11/1/2009 7,066,130
990,000 Summit Academy North Michigan Public School Academy
Certificates of Participation 6.550 7/1/2014 1,002,405
690,000 Summit Academy North Michigan Public School Academy
Certificates of Participation 8.375 7/1/2030 716,468
1,000,000 Trenton, Michigan Building Authority General
Obligation Bonds (AMBAC Insured) 5.600 10/1/2019 1,100,860
- -------------------------------------------------------------------------------------------------------------------------
Total Michigan 20,334,234
=========================================================================================================================
Minnesota (3.2%)
- -------------------------------------------------------------------------------------------------------------------------
375,000 Chaska, Minnesota Economic Development Authority
School Facilities Lease Revenue Bonds (Independent
School District #112) (Series A) 5.125 12/1/2010 396,941
4,000,000 Lakeville, Minnesota Independent School District
#194 (Series B) (FGIC Insured) Zero Coupon 2/1/2016 2,271,800
300,000 Scott County, Minnesota Housing and Redevelopment
Authority Facilities Lease Revenue Bonds (Workforce
Center Project) 5.000 2/1/2017 306,330
525,000 Scott County, Minnesota Housing and Redevelopment
Authority Facilities Lease Revenue Bonds (Workforce
Center Project) 5.000 2/1/2018 534,807
10,530,000 Southern Minnesota Municipal Power Agency Power
Supply System Revenue Bonds (Series A) (AMBAC
Insured)(d) 5.000 1/1/2011 11,440,424
5,000,000 White Earth Band of Chippewa Indians, Minnesota
Revenue Bonds (Series A) (ACA Insured) 7.000 12/1/2011 5,471,350
- -------------------------------------------------------------------------------------------------------------------------
Total Minnesota 20,421,652
=========================================================================================================================
Missouri (1.1%)
- -------------------------------------------------------------------------------------------------------------------------
785,000 Missouri State Development Finance Board
Infrastructure Facilities Revenue Bonds (Eastland
Center Project Phase II Series B) 5.875 4/1/2017 826,432
500,000 Missouri State Development Finance Board
Infrastructure Facilities Revenue Bonds (Eastland
Center Project Phase II Series B) 6.000 4/1/2021 525,965
1,000,000 Missouri State Environmental Improvement and Energy
Resources Authority Water Pollution Revenue Bonds
(Series A) 5.250 1/1/2018 1,071,230
3,375,000 Missouri State Health and Educational Facilities
Authority Revenue Bonds (Bethesda Health)
(Series A)(b) 7.500 8/15/2012 3,503,925
450,000 Missouri State Housing Development Commission Single
Family Mortgage Revenue Bonds (Series B-1)
(GNMA/FNMA Insured) (Subject to 'AMT') 7.450 9/1/2031 467,870
700,000 Missouri State Housing Development Commission Single
Family Mortgage Revenue Bonds (Series C-1)
(GNMA/FNMA Insured) (Subject to 'AMT') 7.150 3/1/2032 729,050
- -------------------------------------------------------------------------------------------------------------------------
Total Missouri 7,124,472
=========================================================================================================================
Montana (0.8%)
- -------------------------------------------------------------------------------------------------------------------------
100,000 Montana State Board of Housing Single Family
Mortgage Revenue Bonds (Series A-1) 6.000 6/1/2016 101,421
370,000 Montana State Board of Housing Single Family
Mortgage Revenue Bonds (Series A-2) (Subject to
'AMT') 6.250 6/1/2019 380,682
1,340,000 Montana State Board of Regents Revenue Bonds (Higher
Education-University of Montana) (Series F) (MBIA
Insured) 5.750 5/15/2016 1,499,259
3,000,000 Montana State Health Facilities Authority
Revenue Bonds (Hillcrest Senior Living Project) 7.375 6/1/2030 3,167,310
- -------------------------------------------------------------------------------------------------------------------------
Total Montana 5,148,672
=========================================================================================================================
Nebraska (1.6%)
- -------------------------------------------------------------------------------------------------------------------------
500,000 American Public Energy Agency Nebraska Gas Supply
Revenue Bonds (Nebraska Public Gas Agency Project)
(Series C) (AMBAC Insured) 4.000 9/1/2004 504,675
170,000 American Public Energy Agency Nebraska Gas Supply
Revenue Bonds (Nebraska Public Gas Agency Project)
(Series C) (AMBAC Insured) 4.300 3/1/2011 177,655
2,500,000 Nebraska Public Power District Revenue Bonds
(Series B) (AMBAC Insured) 5.000 1/1/2013 2,693,325
1,675,000 Omaha, Nebraska Special Assessment Bonds (Riverfront
Redevelopment Project) (Series A) 5.500 2/1/2015 1,854,476
5,000,000 University of Nebraska Revenue Bonds (Lincoln Student
Fees & Facilities) (Series B) 5.000 7/1/2023 5,073,350
- -------------------------------------------------------------------------------------------------------------------------
Total Nebraska 10,303,481
=========================================================================================================================
Nevada (0.5%)
- -------------------------------------------------------------------------------------------------------------------------
2,500,000 Washoe County, Nevada General Obligation Bonds
(Reno-Sparks Convention) (Series A) (FSA Insured)(b) 6.400 7/1/2029 2,912,150
- -------------------------------------------------------------------------------------------------------------------------
Total Nevada 2,912,150
=========================================================================================================================
New Jersey (1.9%)
- -------------------------------------------------------------------------------------------------------------------------
2,000,000 Hudson County, New Jersey Certificate Of
Participation Department of Finance and
Administration (MBIA Insured) 6.250 12/1/2015 2,356,060
5,000,000 New Jersey Transportation Trust Fund Authority
Revenue Bond (Transportation System) (Series A) (FSA
Insured) 5.500 12/15/2016 5,593,600
4,570,000 Tobacco Settlement Authority New Jersey Tobacco
Settlement Revenue Bonds 5.375 6/1/2018 3,965,115
- -------------------------------------------------------------------------------------------------------------------------
Total New Jersey 11,914,775
=========================================================================================================================
New Mexico (1.3%)
- -------------------------------------------------------------------------------------------------------------------------
3,500,000 Jicarilla, New Mexico Apache Nation Revenue Bonds
(Series A) 5.500 9/1/2023 3,561,600
2,525,000 New Mexico Mortgage Finance Authority Revenue Bonds
(Series F) (GNMA/FNMA Insured) 7.000 1/1/2026 2,734,726
450,000 New Mexico Mortgage Finance Authority Single Family
Mortgage Capital Appreciation Revenue Bonds
(Series D-2) (Subject to 'AMT') Zero Coupon 9/1/2019 339,588
1,675,000 New Mexico Mortgage Finance Authority Single Family
Mortgage Revenue Bonds (Series C-2) (GNMA/FNMA
Insured) (Subject to 'AMT') 6.950 9/1/2031 1,805,315
- -------------------------------------------------------------------------------------------------------------------------
Total New Mexico 8,441,229
=========================================================================================================================
New York (11.3%)
- -------------------------------------------------------------------------------------------------------------------------
3,500,000 Metropolitan Transportation Authority New York
Revenue Bonds (Series A) (FGIC Insured) 5.000 11/15/2025 3,514,875
3,000,000 Metropolitan Transportation Authority New York
Transportation Facilities Revenue Bonds (Series A) 5.500 7/1/2017 3,313,500
13,000,000 New York City Transitional Finance Authority (Future
Tax Secured) (Series B) 5.250 2/1/2029 14,150,887
1,100,000 New York Counties Tobacco Trust Settlement
Revenue Bonds 5.800 6/1/2023 1,105,764
4,000,000 New York State Dormitory Authority Revenue Bonds
(Series B)(e) 5.250 5/15/2012 4,318,280
2,000,000 New York State Dormitory Authority Revenue Bonds
(State University Educational Facilities) (Series A) 7.500 5/15/2013 2,504,540
5,000,000 New York State Dormitory Authority Revenue Bonds
(State University Educational Facilities)
(Series A)(d) 5.875 5/15/2017 5,703,050
2,000,000 New York State Local Government Assistance
Corporation Revenue Bonds (Series E) (MBIA/IBC
Insured) 5.250 4/1/2016 2,192,580
1,900,000 New York State Mortgage Agency Revenue Bonds
(Series 26) 5.350 10/1/2016 1,901,691
3,000,000 New York State Thruway Authority General
Revenue Bonds (Series E) 5.000 1/1/2016 3,124,800
10,000,000 New York State Urban Development Corporation
Revenue Bonds (Correctional and Youth Facilities)
(Series A) 5.000 1/1/2017 10,644,500
3,000,000 New York, New York City Municipal Transitional
Finance Authority Revenue Bonds (Series A) 5.375 11/15/2021 3,171,690
4,500,000 New York, New York City Municipal Transitional
Finance Authority Revenue Bonds (Series A)(c) 5.500 11/1/2011 5,019,345
1,250,000 New York, New York General Obligation Bonds
(Series G) 5.000 8/1/2013 1,307,688
4,750,000 New York, New York General Obligation Bonds
(Series G) 5.250 8/1/2015 5,010,632
3,000,000 New York, New York General Obligation Bonds
(Series H) (FSA/CR Insured) 5.250 3/15/2016 3,212,520
2,000,000 New York, New York General Obligation Bonds
(Series I) 5.000 8/1/2016 2,053,860
- -------------------------------------------------------------------------------------------------------------------------
Total New York 72,250,202
=========================================================================================================================
North Carolina (2.4%)
- -------------------------------------------------------------------------------------------------------------------------
1,170,000 Fayetteville, North Carolina Public Works Commission
Revenue Bonds (FSA Insured)(b) 5.125 3/1/2017 1,273,779
1,475,000 North Carolina Eastern Municipal Power Agency Power
System Prerefunded Revenue Bonds (Series A)(b) 6.000 1/1/2026 1,707,180
4,000,000 North Carolina Eastern Municipal Power Agency Power
System Revenue Bonds 5.375 1/1/2017 4,121,760
175,000 North Carolina Eastern Municipal Power Agency Power
System Revenue Bonds (Series B) 6.000 1/1/2006 184,662
2,375,000 North Carolina Eastern Municipal Power Agency Power
System Revenue Bonds (Series B) 5.500 1/1/2021 2,386,804
2,000,000 North Carolina Eastern Municipal Power Agency Power
System Revenue Bonds (Series D) 6.750 1/1/2026 2,174,780
1,250,000 North Carolina Municipal Power Agency #1 Catawba
Electric Revenue Bonds (Series B) 6.250 1/1/2007 1,356,900
250,000 North Carolina Municipal Power Agency #1 Catawba
Electric Revenue Bonds (Series B) 6.500 1/1/2009 280,152
610,000 North Carolina Municipal Power Agency #1 Catawba
Electric Revenue Bonds (Series B) 6.375 1/1/2013 676,612
1,000,000 Wake County, North Carolina Industrial, Facilities,
and Pollution Control Revenue Bonds (Carolina Power
and Light Company Project) 5.375 2/1/2017 1,061,840
- -------------------------------------------------------------------------------------------------------------------------
Total North Carolina 15,224,469
=========================================================================================================================
North Dakota (0.5%)
- -------------------------------------------------------------------------------------------------------------------------
3,250,000 Ward County, North Dakota Health Care Facilities
Revenue Bonds (Trinity Medical Center) (Series B) 6.250 7/1/2021 3,298,718
- -------------------------------------------------------------------------------------------------------------------------
Total North Dakota 3,298,718
=========================================================================================================================
Ohio (1.3%)
- -------------------------------------------------------------------------------------------------------------------------
1,700,000 Cincinnati, Ohio General Obligation Bonds 5.375 12/1/2019 1,829,710
2,000,000 Montgomery County, Ohio Hospital Revenue Bonds
(Kettering Medical Center) 6.750 4/1/2018 2,179,400
2,500,000 Montgomery County, Ohio Hospital Revenue Bonds
(Kettering Medical Center) 6.750 4/1/2022 2,681,875
1,775,000 Ohio Housing Finance Agency Mortgage Residential
Revenue Bonds (Series A-1) (GNMA Insured) (Subject to
'AMT') 5.750 9/1/2026 1,841,119
- -------------------------------------------------------------------------------------------------------------------------
Total Ohio 8,532,104
=========================================================================================================================
Oklahoma (0.8%)
- -------------------------------------------------------------------------------------------------------------------------
1,040,000 Oklahoma Development Finance Authority Hospital
Revenue Bond (Unity Health Center Project) 5.000 10/1/2011 1,079,094
255,000 Oklahoma Housing Finance Agency Single Family
Mortgage Revenue Bonds (Series C-2) (Subject to
'AMT') 7.550 9/1/2028 271,238
455,000 Oklahoma Housing Finance Agency Single Family
Mortgage Revenue Bonds (Series D-2) (GNMA/FNMA
Insured) (Subject to 'AMT') 7.100 9/1/2028 488,333
2,900,000 Payne County, Oklahoma Economic Development
Authority Student Housing Revenue Bonds (Collegiate
Housing Foundation) (Series A)(b) 6.375 6/1/2030 3,386,620
- -------------------------------------------------------------------------------------------------------------------------
Total Oklahoma 5,225,285
=========================================================================================================================
Oregon (0.7%)
- -------------------------------------------------------------------------------------------------------------------------
550,000 Forest Grove, Oregon Revenue Bonds (Campus
Improvement -- Pacific University) 6.000 5/1/2015 611,710
3,500,000 Klamath Falls, Oregon Inter-Community Hospital
Authority Revenue Bonds (Gross-Merle West Medical
Center Project)(b) 7.100 9/1/2024 3,638,215
- -------------------------------------------------------------------------------------------------------------------------
Total Oregon 4,249,925
=========================================================================================================================
Pennsylvania (2.3%)
- -------------------------------------------------------------------------------------------------------------------------
2,480,000 Allegheny County, Pennsylvania Redevelopment
Authority Tax Increment Tax Allocation Bonds
(Waterfront Project) (Series B) 6.000 12/15/2010 2,712,674
2,330,000 Allegheny County, Pennsylvania Redevelopment
Authority Tax Increment Tax Allocation Bonds
(Waterfront Project) (Series C) 6.550 12/15/2017 2,569,827
3,540,000 Carbon County, Pennsylvania Industrial Development
Authority Revenue Bonds (Panther Creek Partners
Project) (Subject to 'AMT') 6.650 5/1/2010 3,832,546
2,000,000 Cornwall Lebanon, Pennsylvania School District
Capital Appreciation General Obligation Bonds (FSA
Insured) Zero Coupon 3/15/2016 1,147,560
1,520,000 Cornwall Lebanon, Pennsylvania School District
Capital Appreciation General Obligation Bonds (FSA
Insured) Zero Coupon 3/15/2017 823,962
1,000,000 Lancaster County, Pennsylvania Hospital Authority
Revenue Bonds 5.500 3/15/2026 996,160
435,000 Montgomery County, Pennsylvania Higher Education and
Health Authority Revenue Bonds (Foulkeways at
Gwynedd Project) 6.750 11/15/2024 454,893
1,880,000 Montgomery County, Pennsylvania Higher Education and
Health Authority Revenue Bonds (Foulkeways at Gwynedd
Project) 6.750 11/15/2030 1,955,632
- -------------------------------------------------------------------------------------------------------------------------
Total Pennsylvania 14,493,254
=========================================================================================================================
Puerto Rico (0.3%)
- -------------------------------------------------------------------------------------------------------------------------
1,980,000 Puerto Rico Industrial Tourist Educational Medical
and Environmental Central Facilities Revenue Bonds
(AES Cogen Facilities Project) (Subject to 'AMT') 6.625 6/1/2026 2,053,498
- -------------------------------------------------------------------------------------------------------------------------
Total Puerto Rico 2,053,498
=========================================================================================================================
South Carolina (2.1%)
- -------------------------------------------------------------------------------------------------------------------------
2,000,000 Piedmont, South Carolina Municipal Power Agency
Electric Revenue Bonds (FGIC Insured) 6.250 1/1/2021 2,380,980
3,320,000 Piedmont, South Carolina Municipal Power Agency
Electric Revenue Bonds (Series A)(b) 6.550 1/1/2016 3,422,588
2,000,000 South Carolina Jobs Economic Development Authority
Hospital Facilities Revenue Bonds (Palmetto Health
Alliance) (Series C) 6.875 8/1/2027 2,155,780
5,000,000 South Carolina State Public Service Authority
Revenue Referendum (Series D) (FSA Insured) 5.000 1/1/2020 5,145,750
500,000 South Carolina Transportation Infrastructure Bank
Revenue Bonds (Series A) (MBIA Insured) 5.500 10/1/2007 550,210
- -------------------------------------------------------------------------------------------------------------------------
Total South Carolina 13,655,308
=========================================================================================================================
South Dakota (0.3%)
- -------------------------------------------------------------------------------------------------------------------------
2,000,000 South Dakota State Health and Educational Facilities
Authority Revenue Bonds (Prairie Lakes Health Care
System, Inc.) (ACA/CBI Insured) 5.650 4/1/2022 2,061,100
- -------------------------------------------------------------------------------------------------------------------------
Total South Dakota 2,061,100
=========================================================================================================================
Tennessee (2.1%)
- -------------------------------------------------------------------------------------------------------------------------
2,000,000 Carter County Industrial Development Board
Revenue Bonds(d) 4.150 10/1/2007 2,063,400
2,000,000 Memphis-Shelby County, Tennessee Airport Authority
Special Facilities and Project Revenue Bonds
(Federal Express Corporation) 5.350 9/1/2012 2,166,720
2,000,000 Memphis-Shelby County, Tennessee Airport Authority
Special Facilities Revenue Bonds (Federal Express
Corporation) 5.050 9/1/2012 2,119,020
1,500,000 Metropolitan Government Nashville and Davidson
County, Tennessee Health and Educational Facilities
Revenue Bonds (Series A-1 (GNMA Insured) 7.250 6/20/2036 1,502,940
4,155,000 Metropolitan Government Nashville and Davidson
County, Tennessee Industrial Development Board
Revenue Bonds (Series A) (GNMA Insured) 6.625 3/20/2036 4,596,178
640,000 Tennergy Corporation Tennessee Gas Revenue Bonds
(MBIA Insured) 4.125 6/1/2009 665,178
150,000 Tennessee Energy Acquisition Corporation Gas
Revenue Bonds (Series A) (AMBAC Insured) 5.000 9/1/2007 161,332
- -------------------------------------------------------------------------------------------------------------------------
Total Tennessee 13,274,768
=========================================================================================================================
Texas (11.8%)
- -------------------------------------------------------------------------------------------------------------------------
2,000,000 Alliance Airport, Texas Income Authority Special
Facilities Revenue Bond (Federal Express Corporation
Project) (Subject to 'AMT') 6.375 4/1/2021 2,116,100
2,000,000 Amarillo, Texas Health Facilities Corporation
Revenue Bonds (Baptist St. Anthony's Hospital
Corporation) (FSA Insured) 5.500 1/1/2017 2,192,800
750,000 Arlington, Texas General Obligation Bonds 5.375 8/15/2016 805,770
1,055,000 Arlington, Texas General Obligation Bonds 5.500 8/15/2019 1,135,243
1,250,000 Austin, Texas Utility System Revenue Bonds (FGIC
Insured) 6.000 11/15/2013 1,436,275
2,265,000 Bexar County, Texas Housing Finance Corporation
Multi- Family Housing Revenue Bonds (American
Opty-Waterford Apartments) (Series A1) 7.000 12/1/2036 2,266,382
1,930,000 Bexar County, Texas Housing Finance Corporation
Multi-Family Housing Revenue Bonds (Dymaxion and
Marrach Park Apartments) (Series A) (MBIA Insured) 6.000 8/1/2023 2,030,900
2,000,000 Bexar County, Texas Housing Finance Corporation
Multi-Family Housing Revenue Bonds (Nob Hill
Apartments) (Series A) 6.000 6/1/2031 2,020,780
1,720,000 Bexar County, Texas Housing Finance Corporation
Multi-Family Housing Revenue Bonds (Pan American
Apartments) (Series A-1) (GNMA Insured) 7.000 3/20/2031 1,935,791
1,000,000 Bluebonnet Trails Community Mental Health and Mental
Retardation Revenue Bonds 6.125 12/1/2016 1,033,860
500,000 Corpus Christi, Texas General Obligation Bonds
(Series A) (FSA Insured) 5.000 3/1/2012 539,270
1,375,000 Deer Park, Texas Independent School District General
Obligation Bonds (PSF/GTD Insured) 5.000 2/15/2013 1,476,241
1,270,000 Denton, Texas Independent School District General
Obligation Bonds(e) 3.450 1/31/2005 1,288,390
3,210,000 Denton, Texas Utility System Revenue Bonds (Series A)
(FSA Insured) 5.250 12/1/2015 3,463,205
1,445,000 Frisco, Texas Independent School District General
Obligation Bonds (PSF/GTD Insured) 6.250 8/15/2017 1,667,082
7,000,000 Harris County, Houston, Texas General Obligation
Bonds (MBIA Insured) Zero Coupon 8/15/2024 2,316,230
1,500,000 Harris County, Texas Health Facilities Corporation
Revenue Bonds (Sisters of Charity Health Care
Systems) (Series B)(b) 6.250 7/1/2027 1,760,160
6,000,000 Houston, Texas Airport System Revenue Bonds (FSA
Insured) 5.000 7/1/2027 6,036,060
5,000,000 Houston, Texas Water and Sewer System Revenue Bonds
(Series A) (FSA Insured) 5.750 12/1/2032 5,593,500
1,000,000 Lower Colorado River Authority Texas Revenue Bonds
(Series A) 5.875 5/15/2015 1,120,190
370,000 Mesquite, Texas Independent School District General
Obligation Bonds (Series A) (PSF/GTD Insured) 6.000 2/15/2020 407,400
3,400,000 Mesquite, Texas Independent School District General
Obligation Bonds (Series A) (PSF/GTD Insured)(b) 6.000 2/15/2020 3,813,236
575,000 Nueces County, Texas Housing Finance Corporation
Multi-Family Housing Revenue Bonds (Dolphins Landing
Apartments Project) (Series A) 6.250 7/1/2010 604,980
1,865,000 Nueces County, Texas Housing Finance Corporation
Multi-Family Housing Revenue Bonds (Dolphins Landing
Apartments Project) (Series A) 6.875 7/1/2030 1,954,147
1,000,000 Ridge Parc Development Corporation Texas Multifamily
Revenue Bonds (GNMA Insured) 6.100 6/20/2033 1,087,320
2,795,000 Ridge Parc Development Corporation Texas Multifamily
Revenue Bonds (GNMA Insured) 6.150 11/20/2041 3,011,445
1,365,000 San Antonio, Texas General Obligation Bonds (General
Improvement) 5.250 2/1/2014 1,463,130
1,000,000 San Antonio, Texas Water Revenue Bonds (FSA Insured) 5.500 5/15/2018 1,082,300
1,000,000 San Antonio, Texas Water Revenue Bonds (FSA Insured) 5.500 5/15/2019 1,079,480
1,000,000 San Antonio, Texas Water Revenue Bonds (FSA Insured) 5.500 5/15/2020 1,071,060
1,180,000 South San Antonio, Texas Independent School District
General Obligation Bonds (PSF/GTD Insured)(b) 6.000 8/15/2017 1,331,618
1,250,000 South San Antonio, Texas Independent School District
General Obligation Bonds (PSF/GTD Insured)(b) 6.000 8/15/2018 1,409,325
1,275,000 South San Antonio, Texas Independent School District
General Obligation Bonds (PSF/GTD Insured)(b) 6.000 8/15/2019 1,436,198
1,410,000 Tarrant County, Texas College District General
Obligation Bonds 5.375 2/15/2013 1,551,240
1,040,000 Tarrant County, Texas Housing Finance Corporation
Multi-Family Revenue Bonds (Series A) 6.000 6/1/2031 852,072
2,000,000 Travis County, Texas Health Facilities Development
Corporation Revenue Bonds (Ascension Health Credit)
(Series A) (MBIA Insured)(b) 6.250 11/15/2017 2,348,000
315,000 Westlake, Texas General Obligation Bonds 6.500 5/1/2013 357,270
350,000 Westlake, Texas General Obligation Bonds 6.500 5/1/2015 391,909
335,000 Westlake, Texas General Obligation Bonds 6.500 5/1/2017 371,485
1,650,000 Westlake, Texas General Obligation Bonds 5.750 5/1/2024 1,692,058
2,000,000 Westlake, Texas General Obligation Bonds 5.800 5/1/2032 2,043,120
3,280,000 Wylie, Texas Independent School District Unrefunded
General Obligation Bonds (PSF/GTD Insured) 7.000 8/15/2024 3,921,404
- -------------------------------------------------------------------------------------------------------------------------
Total Texas 75,514,426
=========================================================================================================================
Utah (0.4%)
- -------------------------------------------------------------------------------------------------------------------------
1,605,000 Intermountain Power Agency Utah Power Supply
Revenue Bonds (Series A) (AMBAC/TCRS Insured)(b) 5.500 7/1/2020 1,629,540
440,000 Intermountain Power Agency Utah Power Supply
Revenue Bonds (Series B)(b) 5.250 7/1/2017 446,692
585,000 Intermountain Power Agency Utah Power Supply
Revenue Bonds (Series B) (MBIA/IBC Insured)(b) 5.000 7/1/2016 586,240
- -------------------------------------------------------------------------------------------------------------------------
Total Utah 2,662,472
=========================================================================================================================
Virginia (0.8%)
- -------------------------------------------------------------------------------------------------------------------------
2,500,000 Fairfax County, Virginia Industrial Development
Authority Revenue Bonds (Inova Health Systems
Project) 5.250 8/15/2019 2,609,500
1,355,000 Riverside, Virginia Regional Jail Authority Jail
Facilities Revenue Bonds (MBIA Insured)(b) 5.875 7/1/2014 1,453,359
1,130,000 Riverside, Virginia Regional Jail Authority Jail
Facilities Unrefunded Revenue Bonds (MBIA
Insured)(b) 5.875 7/1/2014 1,212,027
- -------------------------------------------------------------------------------------------------------------------------
Total Virginia 5,274,886
=========================================================================================================================
Washington (4.1%)
- -------------------------------------------------------------------------------------------------------------------------
2,060,000 Clark and Skamania Counties, Washington School
District #112-6 Washougal General Obligation Bonds
(FGIC Insured)(b) 6.000 12/1/2019 2,394,091
1,000,000 Energy Northwest, Washington Electric Revenue Bonds
(Columbia Generating) (Series A) (MBIA Insured) 5.750 7/1/2018 1,098,270
1,000,000 Grant County, Washington Public Utilities District #2
Priest Rapids Hydro Electric Revenue Bonds (Series A)
(MBIA Insured) 5.250 1/1/2017 1,051,400
5,000,000 King County, Washington Sewer Revenue Bonds
(Series B) (FSA Insured) 5.500 1/1/2013 5,511,600
2,000,000 Washington State General Obligation Bonds (Motor
Vehicle Fuel Tax) 5.000 9/1/2007 2,159,700
5,000,000 Washington State General Obligation Bonds (Series A) 6.750 2/1/2015 5,978,850
1,700,000 Washington State Health Care Facilities Authority
Revenue Bonds (Kadlec Medical Center) 6.000 12/1/2030 1,819,544
2,000,000 Washington State Health Care Facilities Authority
Revenue Bonds (Swedish Health Services) (AMBAC
Insured) 5.125 11/15/2018 2,084,560
2,975,000 Washington State Housing Finance Commission
Multi-Family Mortgage Revenue Bonds (Pooled Loan
Program) (Subject to 'AMT') 6.300 1/1/2021 3,166,322
1,000,000 Washington State Housing Finance Commission
Nonprofit Housing Revenue Bonds (Crista Ministries
Projects) (Series A) 5.350 7/1/2014 1,022,090
- -------------------------------------------------------------------------------------------------------------------------
Total Washington 26,286,427
=========================================================================================================================
Wisconsin (1.4%)
- -------------------------------------------------------------------------------------------------------------------------
1,105,000 Monroe, Wisconsin School District General Obligation
Bonds (AMBAC Insured)(b) 6.875 4/1/2014 1,322,563
1,500,000 Wisconsin State Health and Educational Facilities
Authority Revenue Bonds (Aurora Health Care)
(Series B) 5.500 2/15/2015 1,499,790
1,000,000 Wisconsin State Health and Educational Facilities
Authority Revenue Bonds (Eagle River Memorial
Hospital, Inc. Project) 5.750 8/15/2020 1,069,970
1,000,000 Wisconsin State Health and Educational Facilities
Authority Revenue Bonds (Franciscan Sisters
Christian) (Series A) 5.500 2/15/2018 1,003,790
2,000,000 Wisconsin State Health and Educational Facilities
Authority Revenue Bonds (Marshfield Clinic)
(Series B) 6.000 2/15/2025 2,032,060
2,000,000 Wisconsin State Health and Educational Facilities
Authority Revenue Bonds (Watertown Memorial
Hospital, Inc.) 5.500 8/15/2029 2,039,960
- -------------------------------------------------------------------------------------------------------------------------
Total Wisconsin 8,968,133
=========================================================================================================================
Wyoming (1.0%)
- -------------------------------------------------------------------------------------------------------------------------
5,825,000 Wyoming State Farm Loan Board Capital Facilities
Revenue Bonds 5.750 10/1/2020 6,523,534
- -------------------------------------------------------------------------------------------------------------------------
Total Wyoming 6,523,534
- -------------------------------------------------------------------------------------------------------------------------
Total Long-Term Fixed Income (cost $599,045,790) 633,580,126
=========================================================================================================================
Principal
Amount Short-Term Investments (0.9%) Interest Rate (f) Maturity Date Value
- -------------------------------------------------------------------------------------------------------------------------
$720,000 Arizona Health Facilities Authority Revenue Bonds
(Arizona Healthcare Pooled Financing) (FGIC Insured) 4.000% 6/1/2004 $720,506
1,200,000 Boston, Massachusetts Water and Sewer Community
Revenue Bond (Series A) (LOC-State Street)(e) 1.000 5/6/2004 1,200,000
905,000 Hammond, Indiana Pollution Control Revenue Bonds
(Amoco Oil Company Project)(e) 1.100 5/3/2004 905,000
740,000 Harris County, Texas Health Facilities Development
Authority Revenue Bonds (Texas Childrens Hospital)
(MBIA Insured) (Series B-1)(e) 1.110 5/3/2004 740,000
260,000 Hillsdale, Michigan Hospital Finance Authority
Revenue Bonds (Hillsdale Community Health Center) 4.700 5/15/2004 259,894
150,000 Massachusetts State Health and Educational Facilities
Authority Revenue Bond (Capital Asset Program)
(Series C)(e) 1.080 5/3/2004 150,000
750,000 Salt Lake, Utah County Pollution Control
Revenue Bonds (Service Station Holding Project-BP
PLC)(e) 1.100 5/3/2004 750,000
695,000 St. Lucie County, Florida Pollution Control
Revenue Bond Florida Power and Light Project(e) 1.110 5/3/2004 695,000
100,000 Valdez, Alaska Marine Term Revenue Bond (BP
Pipeline, Inc.)(e) 1.100 5/3/2004 100,000
- -------------------------------------------------------------------------------------------------------------------------
Total Short-Term Investments (at amortized cost) 5,520,400
- -------------------------------------------------------------------------------------------------------------------------
Total Investments (cost $604,566,190) $639,100,526
=========================================================================================================================
(a) The categories of investments are shown as apercentage of total
investments.
(b) Denotes securities that have been pre-refunded or escrowed to maturity.
Under such an arrangement, money is deposited into an irrevocable escrow
account and is used to purchase U.S. Treasury securities or government
agency securities with maturing principal and interest earnings sufficient
to pay all debt service requirements of the pre-refunded bonds.
(c) Denotes step coupon bonds for which the current interest rate and next
scheduled reset date are shown.
(d) At April 30, 2004, all or a portion of the denoted securities, valued
at $12,167,050, were pledged as the initial margin deposit or earmarked as
collateral to cover open financial futures contracts as follows:
Notional
Number of Expiration Principal Unrealized
Type Contracts Date Position Value Amount Gain
- -------------------------------------------------------------------------------------------------------------------------
U.S. Treasury Bond Futures 100 June 2003 Short $11,050,000 $11,324,756 $274,756
(e) Denotes variable rate obligations for which the current yield and next
scheduled reset date are shown.
(f) The interest rate shown reflects the coupon, or, for securities
purchased at a discount, the discount rate at the date of purchase.
The accompanying notes to the financial statements
are an integral part of this schedule.
The AAL Bond Fund
Schedule of Investments as of April 30, 2004(a)
Principal
Amount Long-Term Fixed Income (73.7%) Interest Rate Maturity Date Value
- -------------------------------------------------------------------------------------------------------------------------
Asset-Backed Securities (5.7%)
- -------------------------------------------------------------------------------------------------------------------------
$1,151,060 Capital Auto Receivables Asset Trust(b) 1.120% 5/15/2004 $1,151,100
12,500,000 Chase Credit Card Master Trust(b,c) 1.230 5/15/2004 12,531,775
6,000,000 Countrywide Asset Backed Certificates(c) 4.905 8/25/2032 6,012,870
1,429,990 EQCC Home Equity Loan Trust 6.930 2/15/2029 1,433,284
3,750,000 Federal Home Loan Mortgage Corporation 3.158 12/27/2029 3,784,946
11,000,000 GMAC Mortgage Corporation Loan Trust(b,c) 1.230 5/25/2004 11,029,447
2,811,198 Green Tree Financial Corporation 7.650 10/15/2027 2,999,515
105,516 Green Tree Home Improvement Loan Trust 8.100 9/15/2027 105,815
1,000,000 Residential Asset Securities Corporation 3.250 5/25/2029 994,827
- -------------------------------------------------------------------------------------------------------------------------
Total Asset-Backed Securities 40,043,579
=========================================================================================================================
Basic Materials (1.2%)
- -------------------------------------------------------------------------------------------------------------------------
1,500,000 Codelco, Inc. 5.500 10/15/2013 1,492,314
2,445,000 Phelps Dodge Corporation 8.750 6/1/2011 2,948,712
2,000,000 Precision Castparts Corporation 5.600 12/15/2013 1,970,692
2,000,000 Weyerhaeuser Company(d) 5.250 12/15/2009 2,058,416
- -------------------------------------------------------------------------------------------------------------------------
Total Basic Materials 8,470,134
=========================================================================================================================
Capital Goods (3.7%)
- -------------------------------------------------------------------------------------------------------------------------
2,500,000 Boeing Capital Corporation(d) 6.100 3/1/2011 2,674,465
3,000,000 Bombardier Capital, Inc.(c) 6.125 6/29/2006 3,152,187
3,500,000 Goodrich Corporation(d) 6.450 12/15/2007 3,818,076
4,000,000 Hutchison Whampoa International, Ltd. 6.250 1/24/2014 3,926,344
1,500,000 Packaging Corporation of America 4.375 8/1/2008 1,490,462
3,400,000 Raytheon Company(c) 6.000 12/15/2010 3,657,434
1,900,000 Sealed Air Corporation 5.375 4/15/2008 1,977,588
1,500,000 Tyco International Group SA 6.750 2/15/2011 1,617,656
3,750,000 Tyco International Group SA 6.000 11/15/2013 3,801,484
- -------------------------------------------------------------------------------------------------------------------------
Total Capital Goods 26,115,696
=========================================================================================================================
Commercial Mortgage-Backed Securities (6.4%)
- -------------------------------------------------------------------------------------------------------------------------
5,000,000 Banc of America Commercial Mortgage, Inc.(c) 6.085 6/11/2035 5,379,925
3,000,000 Banc of America Commercial Mortgage, Inc.(c) 5.118 7/11/2043 3,043,416
3,000,000 Bear Stearns Commercial Mortgage Securities 3.869 2/11/2041 2,924,988
1,418,667 CAM Commercial Mortgage Corporation 4.834 11/14/2036 1,462,051
4,000,000 First Union National Bank Commercial Mortgage
Trust(c) 7.390 12/15/2031 4,542,728
2,729,558 First Union-Lehman Brothers-Bank of America
Commercial Mortgage Trust 6.280 11/18/2035 2,824,707
2,600,000 LB-UBS Commercial Mortgage Trust 3.323 3/15/2027 2,554,989
8,000,000 LB-UBS Commercial Mortgage Trust 3.086 5/15/2027 7,753,528
5,500,000 Morgan Stanley Capital I, Inc. 6.210 11/15/2031 5,962,781
5,000,000 Nationslink Funding Corporation(c) 6.476 8/20/2030 5,470,655
3,000,000 Wachovia Bank Commercial Mortgage Trust 4.390 2/15/2036 2,903,337
- -------------------------------------------------------------------------------------------------------------------------
Total Commercial Mortgage-Backed Securities 44,823,105
=========================================================================================================================
Communications Services (4.3%)
- -------------------------------------------------------------------------------------------------------------------------
1,750,000 AT&T Broadband Corporation 8.375 3/15/2013 2,087,974
2,500,000 AT&T Wireless Services, Inc. 8.750 3/1/2031 3,049,822
2,000,000 British Sky Broadcasting Group plc(c) 8.200 7/15/2009 2,332,728
4,000,000 Continental Cablevision, Inc.(c) 8.875 9/15/2005 4,338,720
2,500,000 News America, Inc. 7.250 5/18/2018 2,775,248
3,500,000 Sprint Capital Corporation 7.625 1/30/2011 3,946,880
2,500,000 Sprint Capital Corporation 6.900 5/1/2019 2,587,070
2,000,000 Telefonos de Mexico SA 4.500 11/19/2008 1,976,536
1,750,000 TELUS Corporation 7.500 6/1/2007 1,933,824
2,150,000 TELUS Corporation 8.000 6/1/2011 2,493,914
2,000,000 Verizon Global Funding Corporation 7.250 12/1/2010 2,261,040
- -------------------------------------------------------------------------------------------------------------------------
Total Communications Services 29,783,756
=========================================================================================================================
Consumer Cyclical (5.1%)
- -------------------------------------------------------------------------------------------------------------------------
5,500,000 D.R. Horton, Inc.(c) 7.500 12/1/2007 5,995,000
2,000,000 DaimlerChrysler North American Holdings Corporation 4.750 1/15/2008 2,028,948
2,500,000 Delphi Auto Systems Corporation 6.500 5/1/2009 2,654,650
1,500,000 Ford Motor Credit Company 6.500 1/25/2007 1,590,668
2,500,000 Ford Motor Credit Company 7.375 10/28/2009 2,702,422
2,000,000 Ford Motor Credit Company 7.375 2/1/2011 2,138,652
3,000,000 General Motors Acceptance Corporation(c) 6.125 2/1/2007 3,166,782
2,500,000 General Motors Acceptance Corporation 5.850 1/14/2009 2,578,732
3,000,000 Lear Corporation 8.110 5/15/2009 3,446,250
1,750,000 Liberty Media Corporation 7.875 7/15/2009 1,989,124
2,000,000 Liberty Media Corporation 5.700 5/15/2013 1,999,818
1,500,000 Park Place Entertainment Corporation 8.500 11/15/2006 1,642,500
1,000,000 Ryland Group, Inc. 8.000 8/15/2006 1,092,500
2,000,000 Yum! Brands, Inc. 7.700 7/1/2012 2,312,872
- -------------------------------------------------------------------------------------------------------------------------
Total Consumer Cyclical 35,338,918
=========================================================================================================================
Consumer Non-Cyclical (0.8%)
- -------------------------------------------------------------------------------------------------------------------------
1,400,000 Bunge Limited Finance Corporation 4.375 12/15/2008 1,395,150
3,500,000 Bunge Limited Finance Corporation 7.800 10/15/2012 4,043,319
- -------------------------------------------------------------------------------------------------------------------------
Total Consumer Non-Cyclical 5,438,469
=========================================================================================================================
Energy (0.5%)
- -------------------------------------------------------------------------------------------------------------------------
2,250,000 Pemex Project Funding Master Trust(e) 8.000 11/15/2011 2,477,250
1,000,000 XTO Energy, Inc. 4.900 2/1/2014 960,954
- -------------------------------------------------------------------------------------------------------------------------
Total Energy 3,438,204
=========================================================================================================================
Financials (11.2%)
- -------------------------------------------------------------------------------------------------------------------------
2,000,000 Archstone-Smith Trust(c) 3.000 6/15/2008 1,919,218
3,000,000 Associates Manufactured Housing Contract
Pass-Through Certificates 7.900 3/15/2027 3,211,578
1,000,000 Australia & New Zealand Banking Group, Ltd. Capital
Trust I 4.484 1/29/2049 982,837
2,000,000 Capital One Financial Corporation(c) 7.250 5/1/2006 2,139,636
3,250,000 Capital One Financial Corporation(d) 8.750 2/1/2007 3,640,188
1,500,000 Capital One Financial Corporation 6.250 11/15/2013 1,534,036
3,500,000 Countrywide Financial Corporation 4.000 3/22/2011 3,303,380
3,000,000 Credit Suisse First Boston Mortgage Securities
Corporation 3.516 1/15/2037 2,936,784
2,500,000 Goldman Sachs Group, Inc. 5.250 10/15/2013 2,457,180
2,000,000 HSBC Capital Funding, LP(b,c) 9.547 12/31/2049 2,481,844
2,000,000 HSBC Capital Funding, LP(b) 10.176 12/31/2049 2,848,210
2,500,000 ING Capital Funding Trust III(b) 8.439 12/29/2049 2,972,828
13,650,000 Lehman Brothers, Inc.(b,c) 6.539 8/15/2008 14,589,530
6,000,000 MBIA Global Funding, LLC(b,c) 1.240 7/8/2004 6,000,222
1,750,000 Montpelier Reinsurance Holdings, Ltd. 6.125 8/15/2013 1,770,158
2,000,000 Morgan Stanley Dean Witter & Company 4.250 5/15/2010 1,969,784
2,000,000 RBS Capital Trust(b) 6.425 12/29/2049 1,974,496
4,000,000 Regency Centers, LP 7.125 7/15/2005 4,219,312
2,500,000 Royal Bank of Scotland Group plc 9.118 3/31/2049 3,066,010
2,250,000 Simon Property Group, LP(c) 6.375 11/15/2007 2,460,872
1,000,000 Simon Property Group, LP 4.875 3/18/2010 1,013,342
1,000,000 Skandinaviska Enskilda(b) 4.958 3/29/2049 950,202
2,000,000 Sovereign Bancorp, Inc. 10.500 11/15/2006 2,332,820
3,000,000 Union Planters Corporation 7.750 3/1/2011 3,492,000
1,500,000 Vornado Realty Trust 5.625 6/15/2007 1,601,422
2,500,000 Westpac Capital Trust III(b) 5.819 12/29/2049 2,530,325
- -------------------------------------------------------------------------------------------------------------------------
Total Financials 78,398,214
=========================================================================================================================
Foreign (0.8%)
- -------------------------------------------------------------------------------------------------------------------------
2,500,000 Corporacion Andina de Fomento(c) 6.875 3/15/2012 2,746,885
3,000,000 Mexico Government International 6.625 3/3/2015 3,022,500
- -------------------------------------------------------------------------------------------------------------------------
Total Foreign 5,769,385
=========================================================================================================================
Mortgage-Backed Securities (20.2%)
- -------------------------------------------------------------------------------------------------------------------------
68,611,387 Federal National Mortgage Association 15-Yr
Conventional(f) 5.500 5/1/2019 70,661,483
68,875,000 Federal National Mortgage Association 30-Yr.
Conventional(f) 6.000 5/1/2034 70,446,176
- -------------------------------------------------------------------------------------------------------------------------
Total Mortgage-Backed Securities 141,107,659
=========================================================================================================================
Other (0.3%)
- -------------------------------------------------------------------------------------------------------------------------
2,000,000 Glencore Funding, LLC 6.000 4/15/2014 1,890,064
- -------------------------------------------------------------------------------------------------------------------------
Total Other 1,890,064
=========================================================================================================================
Transportation (0.3%)
- -------------------------------------------------------------------------------------------------------------------------
2,000,000 Union Pacific Corporation 5.375 5/1/2014 1,996,008
- -------------------------------------------------------------------------------------------------------------------------
Total Transportation 1,996,008
=========================================================================================================================
U.S. Government (8.5%)
- -------------------------------------------------------------------------------------------------------------------------
10,000,000 Federal Home Loan Mortgage Corporation(b) 1.085 6/9/2004 10,000,760
8,000,000 Federal National Mortgage Association(b) 1.055 5/3/2004 7,998,088
1,500,000 U.S. Treasury Notes(d) 3.125 4/15/2009 1,467,012
22,350,000 U.S. Treasury Notes(d) 6.000 8/15/2009 24,791,045
3,625,000 U.S. Treasury Notes(d) 6.500 2/15/2010 4,122,306
10,300,000 U.S. Treasury Notes(d) 5.000 2/15/2011 10,865,295
- -------------------------------------------------------------------------------------------------------------------------
Total U.S. Government 59,244,506
=========================================================================================================================
Utilities (4.7%)
- -------------------------------------------------------------------------------------------------------------------------
3,000,000 Alliant Energy Resources, Inc.(c) 7.375 11/9/2009 3,365,349
2,500,000 Centerpoint Energy, Inc.(c) 7.250 9/1/2010 2,665,902
5,250,000 FirstEnergy Corporation 6.450 11/15/2011 5,527,195
2,000,000 NiSource Finance Corporation(d) 7.875 11/15/2010 2,328,190
3,000,000 Oncor Electric Delivery Company(c) 7.000 9/1/2022 3,228,705
1,000,000 Pacific Gas & Electric Company 4.200 3/1/2011 959,481
1,500,000 Pacific Gas & Electric Company 6.050 3/1/2034 1,418,552
3,055,707 Power Contract Financing, LLC(c) 5.200 2/1/2006 3,101,635
1,474,478 Power Receivables Finance, LLC 6.290 1/1/2012 1,513,787
2,500,000 Texas-New Mexico Power Company 6.125 6/1/2008 2,548,992
2,500,000 Western Resources, Inc.(c) 7.875 5/1/2007 2,782,500
3,000,000 Xcel Energy, Inc.(c) 7.000 12/1/2010 3,361,680
- -------------------------------------------------------------------------------------------------------------------------
Total Utilities 32,801,968
- -------------------------------------------------------------------------------------------------------------------------
Total Long-Term Fixed Income (cost $511,909,529) 514,659,665
=========================================================================================================================
Principal Maturity
Amount Collateral Held for Securities Loaned (7.5%) Interest Rate (g) Date Value
- -------------------------------------------------------------------------------------------------------------------------
$52,124,160 State Street Navigator Securities Lending Prime Portfolio 1.070% N/A $52,124,160
- -------------------------------------------------------------------------------------------------------------------------
Total Collateral Held for Securities Loaned (cost
$52,124,160) 52,124,160
=========================================================================================================================
Shares or
Principal Maturity
Amount Short-Term Investments (18.8%) Interest Rate (g) Date Value
- -------------------------------------------------------------------------------------------------------------------------
$10,000,000 Amsterdam Funding Corporation(c) 1.041% 5/17/2004 $9,995,378
13,600,000 Aspen Funding Corporation 1.030 5/3/2004 13,599,222
11,000,000 Dexia Finance(c) 1.030 5/27/2004 10,991,817
11,569,000 Falcon Asset Securitization Corporation(c) 1.031 5/13/2004 11,565,028
6,198,000 Federal Home Loan Mortgage Corporation(d) 1.018 5/18/2004 6,195,073
9,865,000 Federal National Mortgage Association 1.018 5/20/2004 9,859,794
10,000,000 Kitty Hawk Funding Corporation(c) 1.041 5/7/2004 9,998,267
6,520,000 Merrill Lynch & Company, Inc.(b,c) 1.420 5/21/2004 6,521,013
5,000,000 Northwestern University 1.052 6/15/2004 4,993,437
11,000,000 Sheffield Receivables Corporation 1.031 5/3/2004 10,999,370
11,410,769 The AAL Money Market Fund 0.530 N/A 11,410,769
10,600,000 Total Capital SA 1.030 5/3/2004 10,599,393
5,003,000 Triple A-1 Funding Corporation 1.030 5/13/2004 5,001,282
10,000,000 Windmill Funding Corporation 1.031 5/26/2004 9,992,847
- -------------------------------------------------------------------------------------------------------------------------
Total Short-Term Investments (at amortized cost) 131,722,690
- -------------------------------------------------------------------------------------------------------------------------
Total Investments (cost $695,756,379) $698,506,515
=========================================================================================================================
(a) The categories of investments are shown as apercentage of total
investments.
(b) Denotes variable rate obligations for which the current yield and next
scheduled reset date are shown.
(c) Earmarked as collateral for options, futures or long settling trades as
discussed in the notes to the financial statements.
(d) All or a portion of the security is on loan as discussed in item 2(L)
of the Notes to Financial Statements.
(e) Denotes step coupon bonds for which the current interest rate and next
scheduled reset date are shown.
(f) Denotes investments purchased on a when-issued basis.
(g) The interest rate shown reflects the yield or, for securities purchased
at a discount, the discount rate at the date of purchase.
The accompanying notes to the financial statements
are an integral part of this schedule.
The AAL Bond Index Fund
Schedule of Investments as of April 30, 2004(a)
Principal
Amount Long-Term Fixed Income (67.8%) Interest Rate Maturity Date Value
- -------------------------------------------------------------------------------------------------------------------------
Asset-Backed Securities (1.1%)
- -------------------------------------------------------------------------------------------------------------------------
$47,833 Advanta Mortgage Loan Trust(b) 7.750% 10/25/2026 $50,401
500,000 Chase Credit Card Master Trust(b) 5.500 11/17/2008 530,186
84,117 EQCC Home Equity Loan Trust 6.930 2/15/2029 84,311
- -------------------------------------------------------------------------------------------------------------------------
Total Asset-Backed Securities 664,898
=========================================================================================================================
Basic Materials (0.5%)
- -------------------------------------------------------------------------------------------------------------------------
200,000 Dow Chemical Company 5.750 11/15/2009 211,359
100,000 International Paper Company 5.850 10/30/2012 103,236
- -------------------------------------------------------------------------------------------------------------------------
Total Basic Materials 314,595
=========================================================================================================================
Capital Goods (1.0%)
- -------------------------------------------------------------------------------------------------------------------------
100,000 Boeing Capital Corporation(c) 6.100 3/1/2011 106,979
150,000 General Electric Company 5.000 2/1/2013 149,139
50,000 Hutchison Whampoa International, Ltd.(b) 5.450 11/24/2010 49,306
25,000 Hutchison Whampoa International, Ltd. 6.250 1/24/2014 24,540
75,000 Northrop Grumman Corporation(b) 7.125 2/15/2011 84,328
150,000 Raytheon Company(b) 5.500 11/15/2012 151,978
- -------------------------------------------------------------------------------------------------------------------------
Total Capital Goods 566,270
=========================================================================================================================
Commercial Mortgage-Backed Securities (1.9%)
- -------------------------------------------------------------------------------------------------------------------------
300,000 Banc of America Commercial Mortgage, Inc.(b) 5.118 7/11/2043 304,342
200,000 Bear Stearns Commercial Mortgage Securities(b) 3.869 2/11/2041 194,999
100,000 First Union National Bank Commercial Mortgage Trust 7.390 12/15/2031 113,568
200,000 General Electric Capital Commercial Mortgage
Corporation 4.641 9/10/2013 194,914
104,787 Morgan Stanley Capital I, Inc. 6.250 3/15/2030 106,585
100,000 Morgan Stanley Capital I, Inc. 6.550 3/15/2030 108,819
110,000 Morgan Stanley Capital I, Inc.(b) 6.210 11/15/2031 119,256
- -------------------------------------------------------------------------------------------------------------------------
Total Commercial Mortgage-Backed Securities 1,142,483
=========================================================================================================================
Communications Services (2.2%)
- -------------------------------------------------------------------------------------------------------------------------
100,000 AT&T Wireless Services, Inc.(b) 7.875 3/1/2011 115,182
250,000 BellSouth Corporation(c) 6.875 10/15/2031 264,845
75,000 Cox Communications, Inc. 3.875 10/1/2008 73,613
100,000 Deutsche Telekom International Finance BV 5.250 7/22/2013 99,264
95,000 GTE North, Inc. 7.625 5/15/2026 99,757
200,000 Sprint Capital Corporation 7.625 1/30/2011 225,536
150,000 Tele-Communications, Inc. (TCI Group) 7.875 8/1/2013 173,103
100,000 Telecom Italia Corporation 5.250 11/15/2013 98,593
150,000 Verizon Global Funding Corporation(b) 7.750 12/1/2030 171,636
- -------------------------------------------------------------------------------------------------------------------------
Total Communications Services 1,321,529
=========================================================================================================================
Consumer Cyclical (1.8%)
- -------------------------------------------------------------------------------------------------------------------------
100,000 AOL Time Warner, Inc. 6.875 5/1/2012 109,326
100,000 DaimlerChrysler North American Holdings
Corporation(b) 4.750 1/15/2008 101,447
150,000 Ford Motor Credit Company 6.500 1/25/2007 159,067
200,000 Ford Motor Credit Company(b) 7.250 10/25/2011 212,222
300,000 General Motors Acceptance Corporation(b) 8.000 11/1/2031 316,627
150,000 Target Corporation(b) 6.350 1/15/2011 164,844
- -------------------------------------------------------------------------------------------------------------------------
Total Consumer Cyclical 1,063,533
=========================================================================================================================
Consumer Non-Cyclical (1.4%)
- -------------------------------------------------------------------------------------------------------------------------
100,000 Bunge Limited Finance Corporation 7.800 10/15/2012 115,523
100,000 Coca-Cola HBC Finance BV(b) 5.125 9/17/2013 99,516
200,000 ConAgra Foods, Inc.(b) 6.000 9/15/2006 212,919
150,000 General Mills, Inc. 6.000 2/15/2012 159,042
50,000 GlaxoSmithKline Capital, Inc. 5.375 4/15/2034 45,999
100,000 Merck & Company, Inc.(c) 5.950 12/1/2028 100,616
75,000 Safeway, Inc. 4.125 11/1/2008 74,152
- -------------------------------------------------------------------------------------------------------------------------
Total Consumer Non-Cyclical 807,767
=========================================================================================================================
Energy (1.0%)
- -------------------------------------------------------------------------------------------------------------------------
100,000 ConocoPhillips Company(b) 4.750 10/15/2012 98,902
150,000 Pemex Project Funding Master Trust(b) 9.125 10/13/2010 175,500
100,000 Union Oil Company of California 6.700 10/15/2007 108,270
200,000 Union Oil Company of California(b) 5.050 10/1/2012 198,980
- -------------------------------------------------------------------------------------------------------------------------
Total Energy 581,652
=========================================================================================================================
Financials (6.1%)
- -------------------------------------------------------------------------------------------------------------------------
150,000 Allstate Corporation(b) 7.200 12/1/2009 172,504
75,000 Australia & New Zealand Banking Group, Ltd. Capital
Trust I(b) 5.360 12/29/2049 73,177
225,000 Avalonbay Communities, Inc.(b) 6.500 1/15/2005 231,663
250,000 Bank of America Corporation 3.875 1/15/2008 251,964
125,000 CIT Group, Inc.(b) 4.750 12/15/2010 123,900
50,000 Citigroup, Inc.(c) 3.500 2/1/2008 49,679
150,000 Citigroup, Inc.(b) 7.250 10/1/2010 171,321
150,000 Countrywide Financial Corporation(b) 4.000 3/22/2011 141,573
125,000 Credit Suisse First Boston USA, Inc.(b) 3.875 1/15/2009 123,366
75,000 EOP Operating, LP 4.750 3/15/2014 69,949
150,000 First Union National Bank(b) 7.800 8/18/2010 177,422
225,000 Goldman Sachs Group, Inc. 6.600 1/15/2012 246,376
250,000 Honda Auto Receivables Owner Trust(b) 2.480 7/18/2008 249,769
75,000 Household Finance Corporation(b) 6.375 11/27/2012 80,763
125,000 International Lease Finance Corporation 5.875 5/1/2013 130,449
125,000 J.P. Morgan Chase & Company(b) 4.500 11/15/2010 123,304
125,000 Lehman Brothers Holdings, Inc. 3.500 8/7/2008 122,735
75,000 Merrill Lynch & Company, Inc. 5.000 2/3/2014 74,813
319,000 Morgan Stanley and Company(b,d) 5.878 3/1/2007 338,347
125,000 Morgan Stanley and Company 0.039 1/15/2009 123,183
175,000 PNC Funding Corporation 6.875 7/15/2007 193,210
100,000 Post Apartment Homes, LP 8.125 6/15/2005 106,059
75,000 Union Planters Bank NA 4.375 12/1/2010 73,422
175,000 Wells Fargo Company(c) 3.500 4/4/2008 173,658
- -------------------------------------------------------------------------------------------------------------------------
Total Financials 3,622,606
=========================================================================================================================
Foreign (1.7%)
- -------------------------------------------------------------------------------------------------------------------------
225,000 European Investment Bank 3.000 6/16/2008 221,904
75,000 Export-Import Bank of Korea 4.125 2/10/2009 73,843
150,000 International Bank for Reconstruction and
Development(c) 5.000 3/28/2006 157,510
200,000 Province of Quebec(b) 7.500 7/15/2023 243,468
100,000 Republic of Italy(b) 6.000 2/22/2011 108,912
50,000 Republic of Italy(b) 4.375 6/15/2013 48,873
150,000 United Mexican States(b) 7.500 1/14/2012 163,500
- -------------------------------------------------------------------------------------------------------------------------
Total Foreign 1,018,010
=========================================================================================================================
Mortgage-Backed Securities (23.4%)
- -------------------------------------------------------------------------------------------------------------------------
87,123 Federal Home Loan Mortgage Corporation 30-Yr. Gold
Conventional 8.500 7/1/2021 95,699
1,100,000 Federal Home Loan Mortgage Corporation 30-Yr. Gold
Conventional 5.000 5/1/2034 1,066,312
19,466 Federal Home Loan Mortgage Corporation Gold 15-Yr.
Pass Through 9.000 4/1/2010 21,252
24,880 Federal Home Loan Mortgage Corporation Gold 15-Yr.
Pass Through 6.000 3/1/2014 26,052
112,710 Federal Home Loan Mortgage Corporation Gold 15-Yr.
Pass Through 7.500 1/1/2015 120,277
116,366 Federal Home Loan Mortgage Corporation Gold 15-Yr.
Pass Through 6.500 7/1/2016 123,158
76,754 Federal Home Loan Mortgage Corporation Gold 15-Yr.
Pass Through 6.500 10/1/2016 81,234
137,562 Federal Home Loan Mortgage Corporation Gold 30-Yr.
Pass Through 8.000 5/1/2027 149,905
187,115 Federal Home Loan Mortgage Corporation Gold 30-Yr.
Pass Through 7.500 1/1/2028 201,471
7,958 Federal Home Loan Mortgage Corporation Gold 30-Yr.
Pass Through 8.000 10/1/2029 8,604
17,117 Federal Home Loan Mortgage Corporation Gold 30-Yr.
Pass Through 8.000 2/1/2030 18,508
297,480 Federal Home Loan Mortgage Corporation Gold 30-Yr.
Pass Through 7.000 8/1/2032 314,154
858,709 Federal Home Loan Mortgage Corporation Gold 30-Yr.
Pass Through(b) 6.000 11/1/2032 878,900
5,813 Federal National Mortgage Association 15-Yr.
Conventional 7.500 8/1/2006 6,151
1,336,645 Federal National Mortgage Association 15-Yr.
Conventional(e) 4.500 5/1/2019 1,279,281
2,600,829 Federal National Mortgage Association 15-Yr.
Conventional(e) 5.000 5/1/2019 2,589,484
4,662,751 Federal National Mortgage Association 30-Yr.
Conventional(e) 5.500 5/1/2034 4,613,437
290,009 Federal National Mortgage Association 30-Yr. Pass
Through(b) 6.500 8/1/2032 301,909
173,880 Federal National Mortgage Association 30-Yr. Pass
Through 6.000 10/1/2032 177,962
280,020 Federal National Mortgage Association 30-Yr. Pass
Through 6.500 12/1/2032 291,511
17,608 Federal National Mortgage Association Conventional
15-Yr. Pass Through 6.000 4/1/2011 18,426
92,355 Federal National Mortgage Association Conventional
15-Yr. Pass Through 6.000 1/1/2014 96,595
18,470 Federal National Mortgage Association Conventional
15-Yr. Pass Through 5.500 4/1/2014 19,058
63,456 Federal National Mortgage Association Conventional
15-Yr. Pass Through 6.000 11/1/2014 66,369
69,539 Federal National Mortgage Association Conventional
15-Yr. Pass Through 6.000 9/1/2016 72,573
22,500 Federal National Mortgage Association Conventional
30-Yr. Pass Through 6.000 6/1/2008 22,982
50,527 Federal National Mortgage Association Conventional
30-Yr. Pass Through 6.000 12/1/2028 51,781
82,678 Federal National Mortgage Association Conventional
30-Yr. Pass Through 6.000 4/1/2031 84,597
42,064 Federal National Mortgage Association Conventional
30-Yr. Pass Through 6.000 5/1/2031 43,040
184,533 Federal National Mortgage Associatios Lending Prime
30-Yr. Pass Through 6.500 7/1/2032 192,106
19,813 Government National Mortgage Association 30-Yr. Pass
Through 8.500 1/15/2017 22,035
19,063 Government National Mortgage Association 30-Yr. Pass
Through 8.000 1/15/2025 20,887
24,914 Government National Mortgage Association 30-Yr. Pass
Through 8.000 7/15/2026 27,265
5,792 Government National Mortgage Association 30-Yr. Pass
Through 8.000 10/15/2028 6,324
79,356 Government National Mortgage Association 30-Yr. Pass
Through 7.000 1/15/2029 84,435
25,482 Government National Mortgage Association 30-Yr. Pass
Through 8.000 12/15/2029 27,813
8,350 Government National Mortgage Association 30-Yr. Pass
Through 8.500 12/15/2029 9,142
8,119 Government National Mortgage Association 30-Yr. Pass
Through 8.000 5/15/2030 8,861
5,365 Government National Mortgage Association 30-Yr. Pass
Through 8.000 7/15/2030 5,855
17,758 Government National Mortgage Association 30-Yr. Pass
Through 7.000 3/15/2031 18,882
84,319 Government National Mortgage Association 30-Yr. Pass
Through 6.000 6/15/2031 86,476
100,029 Government National Mortgage Association 30-Yr. Pass
Through 6.500 7/15/2031 104,510
69,530 Government National Mortgage Association 30-Yr. Pass
Through 7.000 9/15/2031 73,929
283,984 Government National Mortgage Association 30-Yr. Pass
Through(b) 6.500 7/15/2032 296,734
- -------------------------------------------------------------------------------------------------------------------------
Total Mortgage-Backed Securities 13,825,936
=========================================================================================================================
Transportation (0.4%)
- -------------------------------------------------------------------------------------------------------------------------
75,000 CSX Corporation(c) 5.500 8/1/2013 75,208
75,000 FedEx Corporation(b) 3.500 4/1/2009 72,530
122,697 United Air Lines, Inc.(f) 7.186 4/1/2011 109,288
- -------------------------------------------------------------------------------------------------------------------------
Total Transportation 257,026
=========================================================================================================================
U.S. Government (23.6%)
- -------------------------------------------------------------------------------------------------------------------------
300,000 Federal Farm Credit Bank 5.720 4/13/2005 311,494
160,000 Federal Home Loan Bank 6.900 2/7/2007 176,332
200,000 Federal Home Loan Bank 5.625 2/15/2008 214,942
150,000 Federal Home Loan Bank 4.500 9/16/2013 145,122
200,000 Federal Home Loan Bank 7.375 2/13/2015 237,752
100,000 Federal Home Loan Bank 6.640 12/13/2016 114,226
850,000 Federal Home Loan Mortgage Corporation(c) 2.875 9/15/2005 859,975
300,000 Federal Home Loan Mortgage Corporation 2.125 11/15/2005 300,079
400,000 Federal Home Loan Mortgage Corporation(b) 6.000 6/15/2011 434,211
200,000 Federal National Mortgage Association 3.875 3/15/2005 204,066
100,000 Federal National Mortgage Association 5.800 2/22/2006 105,989
150,000 Federal National Mortgage Association 5.500 5/2/2006 158,166
150,000 Federal National Mortgage Association 6.660 3/5/2007 164,697
250,000 Federal National Mortgage Association(c) 3.250 1/15/2008 247,456
150,000 Federal National Mortgage Association(c) 5.250 1/15/2009 158,540
250,000 Federal National Mortgage Association(c) 6.250 2/1/2011 271,037
100,000 Federal National Mortgage Association 6.210 8/6/2038 105,906
100,000 Inter-American Development Bank(b) 5.750 2/26/2008 108,347
200,000 Tennessee Valley Authority 6.150 1/15/2038 207,799
150,000 U.S. Treasury Bonds(c) 13.250 5/15/2014 215,824
100,000 U.S. Treasury Bonds(c) 7.500 11/15/2016 124,324
200,000 U.S. Treasury Bonds(c) 8.750 5/15/2017 273,453
300,000 U.S. Treasury Bonds(c) 8.125 8/15/2019 395,602
100,000 U.S. Treasury Bonds(c) 7.875 2/15/2021 129,867
100,000 U.S. Treasury Bonds(c) 8.125 8/15/2021 133,020
475,000 U.S. Treasury Bonds(c) 6.250 8/15/2023 527,807
50,000 U.S. Treasury Bonds(c) 6.750 8/15/2026 58,986
100,000 U.S. Treasury Bonds(c) 6.500 11/15/2026 114,742
100,000 U.S. Treasury Bonds(c) 6.625 2/15/2027 116,469
400,000 U.S. Treasury Bonds 6.125 11/15/2027 439,844
175,000 U.S. Treasury Bonds(c) 5.250 11/15/2028 171,972
200,000 U.S. Treasury Notes(c) 5.625 2/15/2006 212,070
500,000 U.S. Treasury Notes(c) 2.000 5/15/2006 496,640
200,000 U.S. Treasury Notes(c) 4.625 5/15/2006 208,977
365,000 U.S. Treasury Notes(c) 7.000 7/15/2006 400,345
525,000 U.S. Treasury Notes 6.500 10/15/2006 573,255
650,000 U.S. Treasury Notes(c) 3.500 11/15/2006 663,610
3,350,000 U.S. Treasury Notes(c) 4.375 5/15/2007 3,493,290
125,000 U.S. Treasury Notes(c) 3.375 11/15/2008 124,302
250,000 U.S. Treasury Notes 5.500 5/15/2009 271,728
200,000 U.S. Treasury Notes(c) 10.375 11/15/2009 209,406
100,000 U.S. Treasury Notes 5.000 2/15/2011 105,488
- -------------------------------------------------------------------------------------------------------------------------
Total U.S. Government 13,987,157
=========================================================================================================================
Utilities (1.7%)
- -------------------------------------------------------------------------------------------------------------------------
75,000 Duke Capital Corporation(c) 7.500 10/1/2009 83,947
100,000 Enserch Corporation(b,d) 6.564 7/1/2005 102,320
75,000 FirstEnergy Corporation 6.450 11/15/2011 78,960
150,000 Niagara Mohawk Power Corporation(b) 7.750 10/1/2008 170,020
200,000 Oncor Electric Delivery Company(b) 6.375 1/15/2015 213,637
50,000 Pacific Gas & Electric Company(b) 6.050 3/1/2034 47,285
200,000 Public Service Company of Colorado(b) 7.875 10/1/2012 238,849
50,000 Southern California Edison Company(b) 5.000 1/15/2014 49,052
- -------------------------------------------------------------------------------------------------------------------------
Total Utilities 984,070
- -------------------------------------------------------------------------------------------------------------------------
Total Long-Term Fixed Income (cost $39,788,659) 40,157,532
=========================================================================================================================
Shares Collateral Held for Securities Loaned (15.8%) Interest Rate(g) Maturity Date Value
- -------------------------------------------------------------------------------------------------------------------------
9,349,144 State Street Navigator Securities Lending Prime
Portfolio 1.070% N/A $9,349,144
- -------------------------------------------------------------------------------------------------------------------------
Total Collateral Held for Securities Loaned (cost
$9,349,144) 9,349,144
=========================================================================================================================
Shares or
Principal
Amount Short-Term Investments (16.4%) Rate(g) Date Value
- -------------------------------------------------------------------------------------------------------------------------
$1,400,000 Aspen Funding Corporation 1.030% 5/3/2004 $1,399,920
2,000,000 Barton Capital Corporation 1.030 5/3/2004 1,999,886
600,000 Falcon Asset Securitization Corporation 1.031 5/18/2004 599,708
1,970,640 The AAL Money Market Fund 0.530 N/A 1,970,640
2,050,000 Triple A-1 Funding Corporation(b) 1.031 5/7/2004 2,049,648
1,695,000 Tulip Funding Corporation 1.020 5/6/2004 1,694,760
- -------------------------------------------------------------------------------------------------------------------------
Total Short-Term Investments (at amortized cost) 9,714,562
- -------------------------------------------------------------------------------------------------------------------------
Total Investments (cost $58,852,365) $59,221,238
=========================================================================================================================
(a) The categories of investments are shown as apercentage of total
investments.
(b) Earmarked as collateral for options, futures or long settling trades as
discussed in the notes to the financial statements.
(c) All or a portion of the security is on loan as discussed in item 2(L)
of the Notes to Financial Statements.
(d) Denotes variable rate obligations for which the current yield and next
scheduled reset date are shown.
(e) Denotes investments purchased on a when-issued basis.
(f) In bankruptcy.
(g) The interest rate shown reflects the yield or, for securities purchased
at a discount, the discount rate at the date of purchase.
The accompanying notes to the financial statements
are an integral part of this schedule.
The AAL Money Market Fund
Schedule of Investments as of April 30, 2004(a)
Principal
Amount Certificates of Deposit (7.5%) Interest Rate (b) Maturity Date Value
- -------------------------------------------------------------------------------------------------------------------------
Banking -- Domestic (2.6%)
- -------------------------------------------------------------------------------------------------------------------------
$9,900,000 Royal Bank of Scotland New York 1.345% 1/31/2005 $9,899,629
- -------------------------------------------------------------------------------------------------------------------------
Total Banking -- Domestic 9,899,629
=========================================================================================================================
Banking -- Foreign (4.9%)
- -------------------------------------------------------------------------------------------------------------------------
10,000,000 Deutsche Bank NY 1.400 9/3/2004 10,000,000
8,500,000 Royal Bank of Canada 1.480 11/19/2004 8,499,532
- -------------------------------------------------------------------------------------------------------------------------
Total Banking -- Foreign 18,499,532
- -------------------------------------------------------------------------------------------------------------------------
Total Certificates of Deposit 28,399,161
=========================================================================================================================
Shares or
Principal
Amount Commercial Paper (56.5%) Interest Rate (b) Maturity Date Value
- -------------------------------------------------------------------------------------------------------------------------
Asset-Backed Securities (26.4%)
- -------------------------------------------------------------------------------------------------------------------------
4,800,000 Amsterdam Funding Corporation 1.041 5/5/2004 4,799,445
7,097,000 Amsterdam Funding Corporation 1.031 5/19/2004 7,093,345
8,650,000 Barton Capital Corporation 1.041 5/18/2004 8,645,752
9,460,000 Corporate Receivables Corporation 1.031 5/10/2004 9,457,564
10,300,000 GOVCO, Inc. 1.031 5/13/2004 10,296,464
8,938,000 Kitty Hawk Funding Corporation 1.041 5/17/2004 8,933,869
5,600,000 Nieuw Amsterdam Receivables 1.051 5/5/2004 5,599,347
4,901,000 Nieuw Amsterdam Receivables 1.051 5/6/2004 4,900,285
8,650,000 Nieuw Amsterdam Receivables 1.041 5/12/2004 8,647,251
5,222,000 Park Avenue Receivables Corporation 1.041 5/25/2004 5,218,379
6,512,000 Starfish Global Funding, LLC 1.052 6/10/2004 6,504,403
4,778,000 Thunder Bay Funding, Inc. 1.041 5/17/2004 4,775,791
6,710,000 Thunder Bay Funding, Inc. 1.041 5/20/2004 6,706,317
1,720,000 Triple A-1 Funding Corporation 1.051 5/12/2004 1,719,448
6,870,000 Windmill Funding Corporation 1.051 6/3/2004 6,863,388
- -------------------------------------------------------------------------------------------------------------------------
Total Asset-Backed Securities 100,161,048
=========================================================================================================================
Banking -- Domestic (8.1%)
- -------------------------------------------------------------------------------------------------------------------------
8,650,000 Citigroup, Inc. 1.036 5/6/2004 8,648,757
1,771,000 MLTC Funding, Inc. 1.051 5/25/2004 1,769,760
2,203,000 River Fuel Trust No. 1 1.051 5/27/2004 2,201,329
5,880,000 River Fuel Trust No. 1 1.071 6/2/2004 5,874,407
5,488,000 River Fuel Trust No. 3 1.051 5/12/2004 5,486,239
6,860,000 Society of New York Hospital Fund 1.072 5/3/2004 6,859,592
- -------------------------------------------------------------------------------------------------------------------------
Total Banking -- Domestic 30,840,084
=========================================================================================================================
Banking -- Foreign (1.5%)
- -------------------------------------------------------------------------------------------------------------------------
3,880,000 Svenska Handelsbanke Notes 1.031 5/28/2004 3,877,003
1,950,000 UBS Finance Corporation 1.051 5/3/2004 1,949,886
- -------------------------------------------------------------------------------------------------------------------------
Total Banking -- Foreign 5,826,889
=========================================================================================================================
Capital Goods (3.7%)
- -------------------------------------------------------------------------------------------------------------------------
3,480,000 Cemex SA 1.027 6/2/2004 3,476,752
10,380,000 Cemex SA 1.051 6/8/2004 10,368,496
- -------------------------------------------------------------------------------------------------------------------------
Total Capital Goods 13,845,248
=========================================================================================================================
Consumer Cyclical (6.4%)
- -------------------------------------------------------------------------------------------------------------------------
5,400,000 Toyota Credit Puerto Rico 1.041 5/17/2004 5,397,504
10,290,000 Toyota Credit Puerto Rico 1.030 5/25/2004 10,282,934
8,650,000 United Healthcare Corporation 1.051 5/28/2004 8,643,188
- -------------------------------------------------------------------------------------------------------------------------
Total Consumer Cyclical 24,323,626
=========================================================================================================================
Education (2.3%)
- -------------------------------------------------------------------------------------------------------------------------
7,445,000 Duke University 1.052 5/4/2004 7,444,349
1,280,000 Northwestern University 1.040 5/4/2004 1,279,889
- -------------------------------------------------------------------------------------------------------------------------
Total Education 8,724,238
=========================================================================================================================
Energy (2.4%)
- -------------------------------------------------------------------------------------------------------------------------
9,240,000 Total Capital SA 1.040 5/3/2004 9,239,466
- -------------------------------------------------------------------------------------------------------------------------
Total Energy 9,239,466
=========================================================================================================================
Finance (4.8%)
- -------------------------------------------------------------------------------------------------------------------------
8,575,000 General Electric Capital Corporation 1.041 5/12/2004 8,572,275
8,650,000 General Electric Capital Corporation 1.041 5/24/2004 8,644,253
857,343 SSgA Money Market Fund 0.740 N/A 857,343
- -------------------------------------------------------------------------------------------------------------------------
Total Finance 18,073,871
=========================================================================================================================
Insurance (0.9%)
- -------------------------------------------------------------------------------------------------------------------------
3,460,000 Torchmark Corporation 1.071 5/18/2004 3,458,252
- -------------------------------------------------------------------------------------------------------------------------
Total Insurance 3,458,252
- -------------------------------------------------------------------------------------------------------------------------
Total Commercial Paper 214,492,722
=========================================================================================================================
Principal
Amount U.S. Government (6.5%) Interest Rate (b) Maturity Date Value
- -------------------------------------------------------------------------------------------------------------------------
$8,575,000 Federal Home Loan Bank 1.500% 5/4/2005 $8,574,595
3,400,000 Federal Home Loan Mortgage Corporation 3.250 11/15/2004 3,431,452
6,600,000 Federal Home Loan Mortgage Corporation 1.324 1/11/2005 6,539,865
5,775,000 Federal National Mortgage Association 7.125 2/15/2005 6,032,501
- -------------------------------------------------------------------------------------------------------------------------
Total U.S. Government 24,578,413
=========================================================================================================================
Principal
Amount Variable Rate Notes (29.5%) Interest Rate (b) Maturity Date Value
- -------------------------------------------------------------------------------------------------------------------------
Banking -- Domestic (7.1%)
- -------------------------------------------------------------------------------------------------------------------------
$8,250,000 Bank of America Corporation(c) 1.380% 5/3/2004 $8,250,141
8,575,000 Wells Fargo Bank(c) 1.040 5/11/2004 8,575,000
10,000,000 Wells Fargo Bank(c) 1.030 6/1/2004 9,999,921
- -------------------------------------------------------------------------------------------------------------------------
Total Banking -- Domestic 26,825,062
=========================================================================================================================
Brokerage (8.6%)
- -------------------------------------------------------------------------------------------------------------------------
8,650,000 Goldman Sachs Group, Inc.(c) 1.060 5/20/2004 8,650,000
8,450,000 Goldman Sachs Group, Inc.(c) 1.120 7/19/2004 8,450,688
8,650,000 Lehman Brothers Holdings, Inc.(c) 1.070 5/19/2004 8,650,000
3,400,000 Merrill Lynch & Company, Inc.(c) 1.060 5/28/2004 3,400,000
3,300,000 Merrill Lynch & Company, Inc.(c) 1.410 1/14/2005 3,308,025
- -------------------------------------------------------------------------------------------------------------------------
Total Brokerage 32,458,713
=========================================================================================================================
Consumer Cyclical (3.6%)
- -------------------------------------------------------------------------------------------------------------------------
13,595,000 American Honda Finance Corporation(c) 1.230 6/7/2004 13,613,793
- -------------------------------------------------------------------------------------------------------------------------
Total Consumer Cyclical 13,613,793
=========================================================================================================================
Consumer Non-cyclical (0.6%)
- -------------------------------------------------------------------------------------------------------------------------
2,380,000 United Health Group, Inc.(c) 1.730 5/10/2004 2,386,931
- -------------------------------------------------------------------------------------------------------------------------
Total Consumer Non-cyclical 2,386,931
=========================================================================================================================
Finance (2.3%)
- -------------------------------------------------------------------------------------------------------------------------
8,650,000 American Express Credit Corporation(c) 1.220 5/17/2004 8,659,286
- -------------------------------------------------------------------------------------------------------------------------
Total Finance 8,659,286
=========================================================================================================================
Insurance (2.2%)
- -------------------------------------------------------------------------------------------------------------------------
8,575,000 Allstate Life Global Funding II(c) 1.090 5/10/2004 8,575,000
- -------------------------------------------------------------------------------------------------------------------------
Total Insurance 8,575,000
=========================================================================================================================
U.S. Municipal (5.1%)
- -------------------------------------------------------------------------------------------------------------------------
3,400,000 Alaska State Housing Finance Corporation(c) 1.400 9/1/2004 3,400,000
5,475,000 Hamilton County, Ohio Hospital Facilities
Revenue Bonds (Health Alliance) (Series A)(c) 1.060 5/5/2004 5,475,000
4,000,000 Puerto Rico Commonwealth Government Development
Bank(c) 1.030 5/3/2004 4,000,000
6,470,000 Washington State Health Care Facilities Authority
Revenue Bonds (Sisters of St. Joseph Peace)(c) 1.040 5/6/2004 6,470,000
- -------------------------------------------------------------------------------------------------------------------------
Total U.S. Municipal 19,345,000
- -------------------------------------------------------------------------------------------------------------------------
Total Variable Rate Notes 111,863,785
- -------------------------------------------------------------------------------------------------------------------------
Total Portfolio of Investments (at amortized cost) $379,334,081
=========================================================================================================================
(a) The categories of investments are shown as apercentage of total
investments.
(b) The interest rate shown reflects the yield or, for securities purchased
at a discount, the discount rate at the date of purchase.
(c) Denotes variable rate obligations for which the current yield and next
scheduled reset date are shown.
The accompanying notes to the financial statements
are an integral part of this schedule.
This page is intentionally left blank.
The AAL Mutual Funds
Statement of Assets and Liabilities
AAL AAL AAL
Technology Aggressive Small Cap
As of April 30, 2004 Stock Fund Growth Fund Stock Fund
- ----------------------------------------------------------------------------------------------------------------------------------
Assets
Investments at cost $57,262,717 $42,123,701 $416,453,332
Investments at value 51,014,932 47,248,713 486,962,589
Cash -- -- 47,201
Initial margin deposit on open futures contracts -- -- --
Dividends and interest receivable 7,748 21,957 103,199
Prepaid expenses 1,328 1,321 2,430
Receivable for investments sold 359,228 1,252,386 3,080,586
Receivable for trust shares sold 35,086 15,721 143,988
Receivable from affiliate -- -- --
Total Assets 51,418,322 48,540,098 490,339,993
Liabilities
Accrued expenses 2,395 2,114 41,289
Payable for investments purchased 121,682 1,171,847 3,491,625
Payable upon return of collateral for securities loaned 3,007,794 1,308,222 70,682,736
Payable for trust shares redeemed 38,115 26,893 83,498
Open option written, at value -- 290 a --
Payable for variation margin -- -- --
Payable to affiliate 8,393 28,001 234,310
Total Liabilities 3,178,379 2,537,367 74,533,458
Net Assets
Trust capital (beneficial interest) 85,234,520 77,411,109 321,660,584
Accumulated undistributed net investment income/(loss) (4,124) (4,216) (18,611)
Accumulated undistributed net realized gain/(loss) on
investments and foreign currency transactions (30,742,668) (36,529,168) 23,655,305
Net unrealized appreciation/(depreciation) on:
Investments (6,247,785) 5,125,012 70,509,257
Written option contracts -- (6) --
Futures contracts -- -- --
Foreign currency transactions -- -- --
Total Net Assets $48,239,943 $46,002,731 $415,806,535
Class A share capital $41,467,955 $38,586,931 $379,451,154
Shares of beneficial interest outstanding (Class A) 12,967,633 8,717,567 23,154,835
Net asset value per share $3.20 $4.43 $16.39
Maximum public offering price $3.39 $4.69 $17.34
Class B share capital $3,889,912 $4,000,873 $25,342,606
Shares of beneficial interest outstanding (Class B) 1,257,766 941,313 1,660,756
Net asset value per share $3.09 $4.25 $15.26
Institutional Class share capital $2,882,076 $3,414,927 $11,012,775
Shares of beneficial interest outstanding
(Institutional Class) 868,097 735,851 643,454
Net asset value per share $3.32 $4.64 $17.12
a Premium received on written options $284.
Statement of Assets and Liabilities - continued
AAL AAL AAL
Small Cap Small Cap Mid Cap
As of April 30, 2004 Index Fund II Value Fund Stock Fund
- ----------------------------------------------------------------------------------------------------------------------------------
Assets
Investments at cost $42,953,756 $61,223,985 $857,669,382
Investments at value 48,367,103 74,225,155 932,927,199
Cash -- -- 35,423
Initial margin deposit on open futures contracts 70,000 -- --
Dividends and interest receivable 21,839 32,075 216,040
Prepaid expenses 1,280 1,339 3,837
Receivable for investments sold 273,181 -- 15,734,001
Receivable for trust shares sold 36,505 85,065 442,321
Receivable from affiliate 8,688 -- --
Total Assets 48,778,596 74,343,634 949,358,821
Liabilities
Accrued expenses 3,319 6,723 77,754
Payable for investments purchased 182,220 -- 14,193,930
Payable upon return of collateral for securities loaned 9,757,423 7,676,622 89,313,563
Payable for trust shares redeemed 2,550 8,638 190,614
Open option written, at value -- -- --
Payable for variation margin 15,528 -- --
Payable to affiliate -- 9,809 471,786
Total Liabilities 9,961,040 7,701,792 104,247,647
Net Assets
Trust capital (beneficial interest) 32,326,591 52,735,036 821,032,825
Accumulated undistributed net investment income/(loss) (3,050) (1,437) (36,821)
Accumulated undistributed net realized gain/(loss) on
investments and foreign currency transactions 1,152,033 907,073 (51,142,647)
Net unrealized appreciation/(depreciation) on:
Investments 5,413,347 13,001,170 75,257,817
Written option contracts -- -- --
Futures contracts (71,365) -- --
Foreign currency transactions -- -- --
Total Net Assets $38,817,556 $66,641,842 $845,111,174
Class A share capital $34,397,204 $50,625,938 $789,854,730
Shares of beneficial interest outstanding (Class A) 2,804,516 3,726,972 56,567,734
Net asset value per share $12.26 $13.58 $13.96
Maximum public offering price $12.97 $14.37 $14.77
Class B share capital $4,420,352 $5,677,378 $26,819,605
Shares of beneficial interest outstanding (Class B) 372,422 427,200 2,097,786
Net asset value per share $11.87 $13.29 $12.78
Institutional Class share capital N/A $10,338,526 $28,436,839
Shares of beneficial interest outstanding
(Institutional Class) N/A 743,671 1,967,015
Net asset value per share N/A $13.90 $14.46
a Premium received on written options $284.
Statement of Assets and Liabilities - continued
AAL AAL AAL
Mid Cap Mid Cap International
As of April 30, 2004 Index Fund Index Fund II Fund
- ----------------------------------------------------------------------------------------------------------------------------------
Assets
Investments at cost $30,916,550 $40,072,541 $200,450,963
Investments at value 34,914,638 46,511,666 214,068,056
Cash -- -- --
Initial margin deposit on open futures contracts 58,800 100,800 --
Dividends and interest receivable 26,628 36,004 844,436
Prepaid expenses 1,270 1,291 1,702
Receivable for investments sold 286,416 385,781 38,140
Receivable for trust shares sold 4 117,437 74,602
Receivable from affiliate -- 13,554 --
Total Assets 35,287,756 47,166,533 215,026,936
Liabilities
Accrued expenses 11,243 5,331 38,154
Payable for investments purchased 116,895 164,063 --
Payable upon return of collateral for securities loaned 3,242,991 3,072,047 41,184,857
Payable for trust shares redeemed 175,395 10,955 46,072
Open option written, at value -- -- --
Payable for variation margin 9,640 13,680 --
Payable to affiliate 6,560 -- 34,819
Total Liabilities 3,562,724 3,266,076 41,303,902
Net Assets
Trust capital (beneficial interest) 27,752,970 39,178,882 232,560,292
Accumulated undistributed net investment income/(loss) 71,146 2,683 562,361
Accumulated undistributed net realized gain/(loss) on
investments and foreign currency transactions (50,285) (1,643,003) (73,009,431)
Net unrealized appreciation/(depreciation) on:
Investments 3,998,088 6,439,125 13,617,093
Written option contracts -- -- --
Futures contracts (46,887) (77,230) --
Foreign currency transactions -- -- (7,281)
Total Net Assets $31,725,032 $43,900,457 $173,723,034
Class A share capital N/A $38,478,780 $162,121,585
Shares of beneficial interest outstanding (Class A) N/A 3,352,767 18,434,418
Net asset value per share N/A $11.48 $8.79
Maximum public offering price N/A $12.15 $9.30
Class B share capital N/A $5,421,677 $8,209,186
Shares of beneficial interest outstanding (Class B) N/A 487,029 966,993
Net asset value per share N/A $11.13 $8.49
Institutional Class share capital $31,725,032 N/A $3,392,263
Shares of beneficial interest outstanding
(Institutional Class) 2,691,978 N/A 381,709
Net asset value per share $11.79 N/A $8.89
a Premium received on written options $284.
Statement of Assets and Liabilities - continued
AAL
Capital
As of April 30, 2004 Growth Fund
- --------------------------------------------------------------------------------------
Assets
Investments at cost $2,188,022,375
Investments at value 3,011,406,959
Cash 46,870
Initial margin deposit on open futures contracts --
Dividends and interest receivable 2,480,700
Prepaid expenses 11,100
Receivable for investments sold --
Receivable for trust shares sold 551,720
Receivable from affiliate --
Total Assets 3,014,497,349
Liabilities
Accrued expenses 229,676
Payable for investments purchased --
Payable upon return of collateral for securities loaned 43,932,036
Payable for trust shares redeemed 1,506,036
Open option written, at value --
Payable for variation margin --
Payable to affiliate 1,329,834
Total Liabilities 46,997,582
Net Assets
Trust capital (beneficial interest) 1,936,410,101
Accumulated undistributed net investment income/(loss) 1,730,418
Accumulated undistributed net realized gain/(loss) on
investments and foreign currency transactions 205,974,664
Net unrealized appreciation/(depreciation) on:
Investments 823,384,584
Written option contracts --
Futures contracts --
Foreign currency transactions --
Total Net Assets $2,967,499,767
Class A share capital $2,807,384,900
Shares of beneficial interest outstanding (Class A) 96,297,210
Net asset value per share $29.15
Maximum public offering price $30.85
Class B share capital $75,263,766
Shares of beneficial interest outstanding (Class B) 2,731,566
Net asset value per share $27.55
Institutional Class share capital $84,851,101
Shares of beneficial interest outstanding
(Institutional Class) 2,901,779
Net asset value per share $29.24
a Premium received on written options $284.
The accompanying notes to the financial statements are an integral part of this statement.
The AAL Mutual Funds
Statement of Assets and Liabilities - continued
AAL Large AAL Large AAL Equity
Company Company Income
As of April 30, 2004 Index Fund Index Fund II Fund
- ----------------------------------------------------------------------------------------------------------------------------------
Assets
Investments at cost $29,643,054 $63,376,487 $237,321,281
Investments at value 29,217,294 60,107,571 269,575,322
Cash -- 25,942 --
Initial margin deposit on open futures contracts 60,800 64,000 --
Dividends and interest receivable 31,091 61,494 384,326
Prepaid expenses 1,260 1,307 2,012
Receivable for investments sold 37,273 285,852 8,114,069
Receivable for trust shares sold 11,913 175,763 225,338
Receivable from affiliate -- 23,764 --
Total Assets 29,359,631 60,745,693 278,301,067
Liabilities
Distributions payable -- -- --
Accrued expenses 11,446 3,890 32,739
Payable for investments purchased 25,259 2,501,673 11,964,819
Payable upon return of collateral for securities loaned 588,215 712,851 5,326,401
Payable for trust shares redeemed -- 4,646 251,143
Payable for variation margin 9,643 9,022 --
Payable to affiliate 5,763 -- 95,697
Mortgage dollar roll deferred revenue -- -- --
Total Liabilities 640,326 3,232,082 17,670,799
Net Assets
Trust capital (beneficial interest) 34,545,073 62,425,640 253,783,978
Accumulated undistributed net investment income/(loss) 107,085 166,904 799,028
Accumulated undistributed net realized gain/(loss) on
investments and foreign currency transactions (5,492,578) (1,784,705) (26,206,779)
Net unrealized appreciation/(depreciation) on:
Investments (425,760) (3,268,916) 32,254,041
Futures contracts (14,515) (25,312) --
Total Net Assets $28,719,305 $57,513,611 $260,630,268
Class A share capital N/A $51,153,068 $239,401,621
Shares of beneficial interest outstanding (Class A) N/A 6,723,193 18,996,016
Net asset value per share N/A $7.61 $12.60
Maximum public offering price N/A $8.05 $13.33
Class B share capital N/A $6,360,543 $7,497,192
Shares of beneficial interest outstanding (Class B) N/A 855,161 599,590
Net asset value per share N/A $7.44 $12.50
Institutional Class share capital $28,719,305 N/A $13,731,455
Shares of beneficial interest outstanding
(Institutional Class) 3,803,036 N/A 1,086,691
Net asset value per share $7.55 N/A $12.64
Statement of Assets and Liabilities - continued
AAL AAL AAL
Balanced High Yield Municipal
As of April 30, 2004 Fund Bond Fund Bond Fund
- ----------------------------------------------------------------------------------------------------------------------------------
Assets
Investments at cost $451,064,812 $156,594,902 $604,566,190
Investments at value 464,858,527 159,807,865 639,100,526
Cash 1,666 -- 60,024
Initial margin deposit on open futures contracts -- -- --
Dividends and interest receivable 1,616,025 2,784,541 10,763,883
Prepaid expenses 2,556 1,634 3,447
Receivable for investments sold 29,898,378 3,862,424 4,990,282
Receivable for trust shares sold 35,248 214,770 435,424
Receivable from affiliate -- -- --
Total Assets 496,412,400 166,671,234 655,353,586
Liabilities
Distributions payable -- 264,690 457,410
Accrued expenses 34,877 23,322 32,681
Payable for investments purchased 68,361,575 792,943 4,443,015
Payable upon return of collateral for securities loaned 19,783,668 20,375,644 --
Payable for trust shares redeemed 254,692 115,849 277,326
Payable for variation margin -- -- 32,812
Payable to affiliate 182,889 65,504 241,894
Mortgage dollar roll deferred revenue 50,947 -- --
Total Liabilities 88,668,648 21,637,952 5,485,138
Net Assets
Trust capital (beneficial interest) 403,238,190 207,098,151 625,192,132
Accumulated undistributed net investment income/(loss) 517,205 230,031 (528)
Accumulated undistributed net realized gain/(loss) on
investments and foreign currency transactions (9,805,358) (65,507,863) (10,132,248)
Net unrealized appreciation/(depreciation) on:
Investments 13,793,715 3,212,963 34,534,336
Futures contracts -- -- 274,756
Total Net Assets $407,743,752 $145,033,282 $649,868,448
Class A share capital $277,955,229 $135,079,010 $633,903,521
Shares of beneficial interest outstanding (Class A) 23,857,744 20,652,248 56,115,097
Net asset value per share $11.65 $6.54 $11.30
Maximum public offering price $12.33 $6.85 $11.83
Class B share capital $18,630,111 $6,134,548 $13,173,127
Shares of beneficial interest outstanding (Class B) 1,606,569 937,914 1,166,529
Net asset value per share $11.60 $6.54 $11.29
Institutional Class share capital $111,158,412 $3,819,724 $2,791,800
Shares of beneficial interest outstanding
(Institutional Class) 9,548,213 584,199 247,171
Net asset value per share $11.64 $6.54 $11.30
Statement of Assets and Liabilities - continued
AAL AAL AAL Money
Bond Bond Index Market
As of April 30, 2004 Fund Fund Fund
- ----------------------------------------------------------------------------------------------------------------------------------
Assets
Investments at cost $695,756,379 $58,852,365 $379,334,081
Investments at value 698,506,515 59,221,238 379,334,081
Cash 11,627 46,645 19,098
Initial margin deposit on open futures contracts -- -- --
Dividends and interest receivable 4,886,146 418,426 476,052
Prepaid expenses 2,999 1,317 2,593
Receivable for investments sold 108,048,482 1,485,563 --
Receivable for trust shares sold 404,261 -- 1,846,500
Receivable from affiliate -- -- --
Total Assets 811,860,030 61,173,189 381,678,324
Liabilities
Distributions payable 225,894 8,420 7,619
Accrued expenses 33,773 11,370 21,494
Payable for investments purchased 250,428,416 11,122,328 --
Payable upon return of collateral for securities loaned 52,124,160 9,349,144 --
Payable for trust shares redeemed 207,227 3,903 2,882,319
Payable for variation margin -- -- --
Payable to affiliate 185,106 8,052 156,692
Mortgage dollar roll deferred revenue 185,761 13,109 --
Total Liabilities 303,390,337 20,516,326 3,068,124
Net Assets
Trust capital (beneficial interest) 507,135,252 40,465,919 378,610,200
Accumulated undistributed net investment income/(loss) 96,019 18,575 --
Accumulated undistributed net realized gain/(loss) on
investments and foreign currency transactions (1,511,714) (196,504) --
Net unrealized appreciation/(depreciation) on:
Investments 2,750,136 368,873 --
Futures contracts -- -- --
Total Net Assets $508,469,693 $40,656,863 $378,610,200
Class A share capital $460,536,715 N/A $262,221,969
Shares of beneficial interest outstanding (Class A) 45,407,231 N/A 262,221,969
Net asset value per share $10.14 N/A $1.00
Maximum public offering price $10.62 N/A $1.00
Class B share capital $13,425,034 N/A $1,805,199
Shares of beneficial interest outstanding (Class B) 1,323,013 N/A 1,805,199
Net asset value per share $10.15 N/A $1.00
Institutional Class share capital $34,507,944 $40,656,863 $114,583,032
Shares of beneficial interest outstanding
(Institutional Class) 3,401,238 4,023,480 114,583,032
Net asset value per share $10.15 $10.10 $1.00
The accompanying notes to the financial statements are an integral part of this statement.
The AAL Mutual Funds
Statement of Operations
AAL AAL AAL
Technology Aggressive Small Cap
For the year ended April 30, 2004 Stock Fund Growth Fund Stock Fund
- -------------------------------------------------------------------------------------------------------------------------------
Investment Income
Dividends $146,021 $375,968 $2,376,953
Taxable interest 6,341 -- 76,736
Income from securities loaned 6,196 4,026 61,966
Foreign dividend tax withholding (1,822) (1,411) (4,312)
Total Investment Income 156,736 378,583 2,511,343
Expenses
Adviser fees 343,997 341,900 2,544,598
Subadviser fees -- -- --
Accounting and pricing fees 28,548 29,847 58,588
Administrative service fees 3,445 3,090 27,951
Audit and legal fees 16,435 16,427 16,575
Custody fees 11,991 21,976 43,056
Distribution expense Class A 98,728 89,420 855,598
Distribution expense Class B 35,255 36,981 244,761
Printing and postage expense Class A 118,112 112,521 449,427
Printing and postage expense Class B 15,419 15,829 53,540
Printing and postage expense Institutional Class 47 41 218
SEC and state registration expense 50,422 50,020 58,534
Shareholder maintenance fees Class A 61,865 60,052 239,576
Shareholder maintenance fees Class B 7,987 8,467 28,842
Shareholder maintenance fees Institutional Class 25 28 88
Transfer agent fees Class A 184,773 180,132 715,692
Transfer agent fees Class B 23,889 25,078 88,661
Transfer agent fees Institutional Class 60 73 278
Trustees' fees and insurance expenses 5,639 5,655 14,394
Other expenses 6,323 5,857 9,781
Total Expenses Before Reimbursement 1,012,960 1,003,394 5,450,158
Less:
Reimbursement from adviser (382,530) (9,938) (60,648)
Fees paid indirectly (76) (1) (117)
Total Net Expenses 630,354 993,455 5,389,393
Net Investment Income/(Loss) (473,618) (614,872) (2,878,050)
Realized and Unrealized Gains/(Losses) on
Investments and Foreign Currency Transactions
Net realized gains/(losses) on:
Investments (122,595) 3,935,910 57,134,227
Written option contracts -- (2,266) --
Futures contracts -- -- --
Foreign currency transactions -- -- --
Change in net unrealized appreciation/(depreciation) on:
Investments 10,037,498 3,233,048 68,283,187
Written option contracts -- (6) --
Futures contracts -- -- --
Foreign currency forward contracts -- -- --
Foreign currency transactions -- -- --
Net Realized and Unrealized Gains on
Investments and Foreign Currency Transactions 9,914,903 7,166,686 125,417,414
Net Increase in Net Assets Resulting
From Operations $9,441,285 $6,551,814 $122,539,364
Statement of Operations - continued
AAL AAL AAL
Small Cap Small Cap Mid Cap
For the year ended April 30, 2004 Index Fund II Value Fund Stock Fund
- -------------------------------------------------------------------------------------------------------------------------------
Investment Income
Dividends $278,483 $435,867 $6,828,076
Taxable interest -- 2,761 305,680
Income from securities loaned 7,950 9,280 112,461
Foreign dividend tax withholding (136) (1,140) (22,565)
Total Investment Income 286,297 446,768 7,223,652
Expenses
Adviser fees 78,823 361,257 5,331,519
Subadviser fees -- -- --
Accounting and pricing fees 30,575 30,053 83,756
Administrative service fees 2,480 4,207 57,602
Audit and legal fees 15,860 16,388 22,413
Custody fees 20,570 38,837 38,333
Distribution expense Class A 70,739 100,096 1,882,993
Distribution expense Class B 32,336 44,075 257,089
Printing and postage expense Class A 37,479 73,661 759,324
Printing and postage expense Class B 6,170 9,882 62,365
Printing and postage expense Institutional Class -- 43 285
SEC and state registration expense 32,447 78,753 80,552
Shareholder maintenance fees Class A 18,566 36,878 406,044
Shareholder maintenance fees Class B 3,175 5,011 32,353
Shareholder maintenance fees Institutional Class -- 22 111
Transfer agent fees Class A 55,149 109,487 1,219,901
Transfer agent fees Class B 9,402 14,860 98,804
Transfer agent fees Institutional Class -- 57 323
Trustees' fees and insurance expenses 5,024 5,362 28,283
Other expenses 5,187 5,863 12,451
Total Expenses Before Reimbursement 423,982 934,792 10,374,501
Less:
Reimbursement from adviser (67,245) (270,371) (59,248)
Fees paid indirectly (29) (82) (120)
Total Net Expenses 356,708 664,339 10,315,133
Net Investment Income/(Loss) (70,411) (217,571) (3,091,481)
Realized and Unrealized Gains/(Losses) on
Investments and Foreign Currency Transactions
Net realized gains/(losses) on:
Investments 1,339,184 6,913,295 101,122,677
Written option contracts -- -- --
Futures contracts 275,314 -- --
Foreign currency transactions -- -- --
Change in net unrealized appreciation/(depreciation) on:
Investments 7,581,438 10,278,285 103,766,562
Written option contracts -- -- --
Futures contracts (71,365) -- --
Foreign currency forward contracts -- -- --
Foreign currency transactions -- -- --
Net Realized and Unrealized Gains on
Investments and Foreign Currency Transactions 9,124,571 17,191,580 204,889,239
Net Increase in Net Assets Resulting
From Operations $9,054,160 $16,974,009 $201,797,758
Statement of Operations - continued
AAL AAL AAL
Mid Cap Mid Cap International
For the year ended April 30, 2004 Index Fund Index Fund II Fund
- -------------------------------------------------------------------------------------------------------------------------------
Investment Income
Dividends $333,257 $440,928 $3,597,145
Taxable interest 320 115 (24,408)
Income from securities loaned 4,635 5,414 36,067
Foreign dividend tax withholding -- -- (434,675)
Total Investment Income 338,212 446,457 3,174,129
Expenses
Adviser fees 69,296 91,787 401,777
Subadviser fees -- -- 587,488
Accounting and pricing fees 28,956 30,016 56,479
Administrative service fees 2,107 2,812 11,652
Audit and legal fees 16,366 15,872 16,802
Custody fees 11,221 15,470 85,822
Distribution expense Class A -- 81,290 375,442
Distribution expense Class B -- 41,987 75,370
Printing and postage expense Class A -- 47,303 289,452
Printing and postage expense Class B -- 8,811 27,810
Printing and postage expense Institutional Class 215 -- 150
SEC and state registration expense 23,549 34,257 59,683
Shareholder maintenance fees Class A -- 24,716 152,397
Shareholder maintenance fees Class B -- 4,566 14,033
Shareholder maintenance fees Institutional Class 87 -- 65
Transfer agent fees Class A -- 73,674 459,555
Transfer agent fees Class B -- 13,511 43,201
Transfer agent fees Institutional Class 267 -- 196
Trustees' fees and insurance expenses 4,706 5,307 8,822
Other expenses (3,821) 5,807 6,572
Total Expenses Before Reimbursement 152,949 497,186 2,672,768
Less:
Reimbursement from adviser (2,027) (61,592) (2,778)
Fees paid indirectly (13) (16) (5)
Total Net Expenses 150,909 435,578 2,669,985
Net Investment Income/(Loss) 187,303 10,879 504,144
Realized and Unrealized Gains/(Losses) on
Investments and Foreign Currency Transactions
Net realized gains/(losses) on:
Investments 506,682 (1,285,672) 7,806,086
Written option contracts -- -- --
Futures contracts 331,186 340,280 --
Foreign currency transactions -- -- 95,648
Change in net unrealized appreciation/(depreciation) on:
Investments 6,378,198 10,510,433 33,726,558
Written option contracts -- -- --
Futures contracts (79,901) (117,845) --
Foreign currency forward contracts -- -- 11,150
Foreign currency transactions -- -- (61,437)
Net Realized and Unrealized Gains on
Investments and Foreign Currency Transactions 7,136,165 9,447,196 41,578,005
Net Increase in Net Assets Resulting
From Operations $7,323,468 $9,458,075 $42,082,149
Statement of Operations - continued
AAL
Capital
For the year ended April 30, 2004 Growth Fund
- ------------------------------------------------------------------------------------
Investment Income
Dividends $39,163,960
Taxable interest 1,687,700
Income from securities loaned 37,375
Foreign dividend tax withholding --
Total Investment Income 40,889,035
Expenses
Adviser fees 15,870,199
Subadviser fees --
Accounting and pricing fees 191,127
Administrative service fees 201,906
Audit and legal fees 65,797
Custody fees 70,519
Distribution expense Class A 6,971,399
Distribution expense Class B 806,654
Printing and postage expense Class A 1,807,984
Printing and postage expense Class B 161,649
Printing and postage expense Institutional Class 574
SEC and state registration expense 99,916
Shareholder maintenance fees Class A 957,923
Shareholder maintenance fees Class B 81,913
Shareholder maintenance fees Institutional Class 232
Transfer agent fees Class A 2,879,533
Transfer agent fees Class B 250,682
Transfer agent fees Institutional Class 666
Trustees' fees and insurance expenses 95,482
Other expenses 37,458
Total Expenses Before Reimbursement 30,551,613
Less:
Reimbursement from adviser (48,587)
Fees paid indirectly (301)
Total Net Expenses 30,502,725
Net Investment Income/(Loss) 10,386,310
Realized and Unrealized Gains/(Losses) on
Investments and Foreign Currency Transactions
Net realized gains/(losses) on:
Investments 219,961,752
Written option contracts --
Futures contracts --
Foreign currency transactions --
Change in net unrealized appreciation/(depreciation) on:
Investments 180,157,821
Written option contracts --
Futures contracts --
Foreign currency forward contracts --
Foreign currency transactions --
Net Realized and Unrealized Gains on
Investments and Foreign Currency Transactions 400,119,573
Net Increase in Net Assets Resulting
From Operations $410,505,883
The accompanying notes to the financial statements are an integral part of this statement.
The AAL Mutual Funds
Statement of Operations - continued
AAL Large AAL Large AAL Equity
Company Company Income
For the year ended April 30, 2004 Index Fund Index Fund II Fund
- -------------------------------------------------------------------------------------------------------------------------------
Investment Income
Dividends $498,357 $720,971 $4,970,579
Taxable interest 260 454 --
Tax exempt interest -- -- --
Income from mortgage dollar rolls -- -- --
Income from securities loaned 1,667 2,311 9,417
Foreign dividend tax withholding -- -- (26,104)
Total Investment Income 500,284 723,736 4,953,892
Expenses
Adviser fees 70,363 107,033 1,126,183
Subadviser fees -- -- --
Accounting and pricing fees 29,571 31,005 54,573
Administrative service fees 1,870 3,512 17,603
Audit and legal fees 15,363 17,162 16,448
Custody fees 16,674 23,179 8,943
Distribution expense Class A -- 96,561 575,407
Distribution expense Class B -- 41,885 80,231
Printing and postage expense Class A -- 49,482 212,259
Printing and postage expense Class B -- 9,278 17,466
Printing and postage expense Institutional Class 233 -- 231
SEC and state registration expense 21,563 35,392 47,745
Shareholder maintenance fees Class A -- 25,425 115,177
Shareholder maintenance fees Class B -- 4,708 8,232
Shareholder maintenance fees Institutional Class 64 -- 87
Transfer agent fees Class A -- 75,585 340,596
Transfer agent fees Class B -- 13,894 26,192
Transfer agent fees Institutional Class 194 -- 256
Trustees' fees and insurance expenses 5,012 5,244 14,656
Other expenses (4,150) 5,848 9,047
Total Expenses Before Reimbursement 156,757 545,193 2,671,332
Less:
Reimbursement from adviser (2,130) (324,831) (29,630)
Fees paid indirectly (17) (60) (2)
Total Net Expenses 154,610 220,302 2,641,700
Net Investment Income 345,674 503,434 2,312,192
Realized and Unrealized Gains/(Losses) on
Investments and Foreign Currency Transactions
Net realized gains/(losses) on:
Investments (6,745,288) 246,671 6,985,872
Futures contracts 349,276 286,596 --
Change in net unrealized appreciation/(depreciation) on:
Investments 12,547,918 6,407,598 44,006,861
Futures contracts (158,007) (109,107) --
Net Realized and Unrealized Gains/(Losses) on
Investments and Foreign Currency Transactions 5,993,899 6,831,758 50,992,733
Net Increase in Net Assets Resulting
From Operations $6,339,573 $7,335,192 $53,304,925
Statement of Operations - continued
AAL AAL AAL
Balanced High Yield Municipal
For the year ended April 30, 2004 Fund Bond Fund Bond Fund
- -------------------------------------------------------------------------------------------------------------------------------
Investment Income
Dividends $3,247,935 $14,630 $ --
Taxable interest 5,786,850 11,057,610 341,664
Tax exempt interest -- -- 33,587,069
Income from mortgage dollar rolls 1,336,087 -- --
Income from securities loaned 16,853 17,110 --
Foreign dividend tax withholding (105) -- --
Total Investment Income 10,387,620 11,089,350 33,928,733
Expenses
Adviser fees 2,244,059 411,633 3,024,344
Subadviser fees -- 343,028 --
Accounting and pricing fees 67,052 57,085 101,000
Administrative service fees 27,656 9,571 44,039
Audit and legal fees 16,914 19,556 20,194
Custody fees 31,333 16,497 19,285
Distribution expense Class A 687,595 318,883 1,639,570
Distribution expense Class B 192,972 61,146 129,616
Printing and postage expense Class A 192,930 70,356 132,248
Printing and postage expense Class B 27,379 6,260 5,851
Printing and postage expense Institutional Class 135 145 34
SEC and state registration expense 49,509 39,139 71,194
Shareholder maintenance fees Class A 103,355 43,179 71,766
Shareholder maintenance fees Class B 13,932 3,639 2,852
Shareholder maintenance fees Institutional Class 51 50 13
Transfer agent fees Class A 308,547 129,483 215,376
Transfer agent fees Class B 41,906 11,369 8,790
Transfer agent fees Institutional Class 145 145 49
Trustees' fees and insurance expenses 16,955 8,181 26,073
Other expenses 10,484 4,508 8,239
Total Expenses Before Reimbursement 4,032,909 1,553,853 5,520,533
Less:
Reimbursement from adviser (56,079) -- --
Fees paid indirectly (403) (406) (477)
Total Net Expenses 3,976,427 1,553,447 5,520,056
Net Investment Income 6,411,193 9,535,903 28,408,677
Realized and Unrealized Gains/(Losses) on
Investments and Foreign Currency Transactions
Net realized gains/(losses) on:
Investments 8,335,406 6,892,386 747,865
Futures contracts -- -- (407,159)
Change in net unrealized appreciation/(depreciation) on:
Investments 24,974,274 (1,159,062) (13,992,177)
Futures contracts -- -- 274,756
Net Realized and Unrealized Gains/(Losses) on
Investments and Foreign Currency Transactions 33,309,680 5,733,324 (13,376,715)
Net Increase in Net Assets Resulting
From Operations $39,720,873 $15,269,227 $15,031,962
Statement of Operations - continued
AAL AAL AAL Money
Bond Bond Index Market
For the year ended April 30, 2004 Fund Fund Fund
- -------------------------------------------------------------------------------------------------------------------------------
Investment Income
Dividends $66,366 $14,136 $22,532
Taxable interest 20,312,773 1,694,758 4,701,306
Tax exempt interest -- -- 28,630
Income from mortgage dollar rolls 4,952,607 291,037 --
Income from securities loaned 23,788 4,381 --
Foreign dividend tax withholding -- -- --
Total Investment Income 25,355,534 2,004,312 4,752,468
Expenses
Adviser fees 2,403,981 115,666 2,063,046
Subadviser fees -- -- --
Accounting and pricing fees 64,463 33,771 56,379
Administrative service fees 34,193 2,731 26,026
Audit and legal fees 17,855 16,526 15,794
Custody fees 23,815 12,112 20,983
Distribution expense Class A 1,225,069 -- 380,636
Distribution expense Class B 133,975 -- 19,838
Printing and postage expense Class A 231,256 -- 224,583
Printing and postage expense Class B 16,016 -- 2,955
Printing and postage expense Institutional Class 369 230 675
SEC and state registration expense 70,300 23,096 115,202
Shareholder maintenance fees Class A 125,671 -- 131,192
Shareholder maintenance fees Class B 8,385 -- 1,484
Shareholder maintenance fees Institutional Class 163 77 241
Transfer agent fees Class A 374,739 -- 403,003
Transfer agent fees Class B 25,635 -- 4,734
Transfer agent fees Institutional Class 479 249 748
Trustees' fees and insurance expenses 20,869 5,617 17,694
Other expenses 7,563 1,534 7,293
Total Expenses Before Reimbursement 4,784,796 211,609 3,492,506
Less:
Reimbursement from adviser (50,241) (5,549) (336,749)
Fees paid indirectly (782) (113) (208)
Total Net Expenses 4,733,773 205,947 3,155,549
Net Investment Income 20,621,761 1,798,365 1,596,919
Realized and Unrealized Gains/(Losses) on
Investments and Foreign Currency Transactions
Net realized gains/(losses) on:
Investments 10,761,715 2,235,197 --
Futures contracts -- -- --
Change in net unrealized appreciation/(depreciation) on:
Investments (16,685,506) (2,921,884) --
Futures contracts -- -- --
Net Realized and Unrealized Gains/(Losses) on
Investments and Foreign Currency Transactions (5,923,791) (686,687) --
Net Increase in Net Assets Resulting
From Operations $14,697,970 $1,111,678 $1,596,919
The accompanying notes to the financial statements are an integral part of this statement.
The AAL Mutual Funds
Statement of Changes in Net Assets
AAL Technology Stock Fund AAL Aggressive Growth Fund
------------------------------ ------------------------------
For the years ended 4/30/2004 4/30/2003 4/30/2004 4/30/2003
- -------------------------------------------------------------------------------------------------------------------------------
Operations
Net investment loss $(473,618) $(661,069) $(614,872) $(611,674)
Net realized gains/(losses) on:
Investments (122,595) (6,715,842) 3,935,910 (13,764,368)
Written option contracts -- -- (2,266) --
Futures contracts -- -- -- --
Foreign currency transactions -- -- -- (55,592)
Change in net unrealized
appreciation/(depreciation) on:
Investments 10,037,498 (733,387) 3,233,048 6,586,366
Written option contracts -- -- (6) --
Futures contracts -- -- -- --
Foreign currency forward contracts -- -- -- (11,235)
Net Change in Net Assets Resulting
From Operations 9,441,285 (8,110,298) 6,551,814 (7,856,503)
Distributions to Shareholders
From Net Realized Gains -- -- -- --
Trust Share Transactions 4,685,272 359,069 3,079,447 (749,843)
Net Increase/(Decrease) in Net Assets 14,126,557 (7,751,229) 9,631,261 (8,606,346)
Net Assets, Beginning of Period 34,113,386 41,864,615 36,371,470 44,977,816
Net Assets, End of Period $48,239,943 $34,113,386 $46,002,731 $36,371,470
The AAL Mutual Funds
Statement of Changes in Net Assets
AAL Small Cap Stock Fund AAL Small Cap Index Fund II
------------------------------ ------------------------------
For the years ended 4/30/2004 4/30/2003 4/30/2004 4/30/2003
- -------------------------------------------------------------------------------------------------------------------------------
Operations
Net investment loss $(2,878,050) $(2,608,288) $(70,411) $(111,415)
Net realized gains/(losses) on:
Investments 57,134,227 (25,870,944) 1,339,184 (105,395)
Written option contracts -- -- -- --
Futures contracts -- -- 275,314 --
Foreign currency transactions -- -- -- --
Change in net unrealized
appreciation/(depreciation) on:
Investments 68,283,187 (58,852,217) 7,581,438 (5,162,810)
Written option contracts -- -- -- --
Futures contracts -- -- (71,365) --
Foreign currency forward contracts -- -- -- --
Net Change in Net Assets Resulting
From Operations 122,539,364 (87,331,449) 9,054,160 (5,379,620)
Distributions to Shareholders
From Net Realized Gains -- -- (116,288) (135,306)
Trust Share Transactions (1,267,655) (1,577,965) 7,157,605 4,599,568
Net Increase/(Decrease) in Net Assets 121,271,709 (88,909,414) 16,095,477 (915,358)
Net Assets, Beginning of Period 294,534,826 383,444,240 22,722,079 23,637,437
Net Assets, End of Period $415,806,535 $294,534,826 $38,817,556 $22,722,079
The AAL Mutual Funds
Statement of Changes in Net Assets
AAL Small Cap Value Fund
------------------------------
For the years ended 4/30/2004 4/30/2003
- ---------------------------------------------------------------------------------------
Operations
Net investment loss $(217,571) $(258,668)
Net realized gains/(losses) on:
Investments 6,913,295 (5,692,055)
Written option contracts -- --
Futures contracts -- --
Foreign currency transactions -- --
Change in net unrealized
appreciation/(depreciation) on:
Investments 10,278,285 (208,280)
Written option contracts -- --
Futures contracts -- --
Foreign currency forward contracts -- --
Net Change in Net Assets Resulting
From Operations 16,974,009 (6,159,003)
Distributions to Shareholders
From Net Realized Gains -- (206,763)
Trust Share Transactions 15,224,395 12,741,195
Net Increase/(Decrease) in Net Assets 32,198,404 6,375,429
Net Assets, Beginning of Period 34,443,438 28,068,009
Net Assets, End of Period $66,641,842 $34,443,438
AAL Mid Cap Stock Fund AAL Mid Cap Index Fund
------------------------------ ------------------------------
For the years ended 4/30/2004 4/30/2003 4/30/2004 4/30/2003
- -------------------------------------------------------------------------------------------------------------------------------
Operations
Net investment income/(loss) $(3,091,481) $(1,464,241) $187,303 $182,971
Net realized gains/(losses) on:
Investments 101,122,677 (43,113,627) 506,682 383,610
Futures contracts -- -- 331,186 (49,260)
Foreign currency transactions -- -- -- --
Change in net unrealized
appreciation/(depreciation) on:
Investments 103,766,562 (115,065,272) 6,378,198 (4,893,181)
Futures contracts -- -- (79,901) 33,014
Foreign currency forward contracts -- -- -- --
Foreign currency transactions -- -- -- --
Net Change in Net Assets Resulting
From Operations 201,797,758 (159,643,140) 7,323,468 (4,342,846)
Distributions to Shareholders
From net investment income -- -- (154,805) (189,081)
From net realized gains -- -- (157,900) (558,179)
Total Distributions to Shareholders -- -- (312,705) (747,260)
Trust Share Transactions (43,982,250) (47,410,308) 3,952,019 1,515,301
Net Increase/(Decrease) in Net Assets 157,815,508 (207,053,448) 10,962,782 (3,574,805)
Net Assets, Beginning of Period 687,295,666 894,349,114 20,762,250 24,337,055
Net Assets, End of Period $845,111,174 $687,295,666 $31,725,032 $20,762,250
AAL Mid Cap Index Fund II AAL International Fund
------------------------------ ------------------------------
For the years ended 4/30/2004 4/30/2003 4/30/2004 4/30/2003
- -------------------------------------------------------------------------------------------------------------------------------
Operations
Net investment income/(loss) $10,879 $(30,058) $504,144 $215,528
Net realized gains/(losses) on:
Investments (1,285,672) (8,091) 7,806,086 (22,626,640)
Futures contracts 340,280 (97,769) -- --
Foreign currency transactions -- -- 95,648 (23,209)
Change in net unrealized
appreciation/(depreciation) on:
Investments 10,510,433 (6,119,609) 33,726,558 (18,647,688)
Futures contracts (117,845) 40,615 -- --
Foreign currency forward contracts -- -- 11,150 (10,245)
Foreign currency transactions -- -- (61,437) 48,594
Net Change in Net Assets Resulting
From Operations 9,458,075 (6,214,912) 42,082,149 (41,043,660)
Distributions to Shareholders
From net investment income -- -- (220,677) (615,956)
From net realized gains -- (330,723) -- --
Total Distributions to Shareholders -- (330,723) (220,677) (615,956)
Trust Share Transactions 2,482,345 6,630,717 (3,834,606) (2,438,838)
Net Increase/(Decrease) in Net Assets 1,940,420 85,082 38,026,866 (44,098,454)
Net Assets, Beginning of Period 31,960,037 31,874,955 135,696,168 179,794,622
Net Assets, End of Period $43,900,457 $31,960,037 $173,723,034 $135,696,168
AAL Capital Growth Fund
------------------------------
For the years ended 4/30/2004 4/30/2003
- ---------------------------------------------------------------------------------------
Operations
Net investment income/(loss) $10,386,310 $10,279,075
Net realized gains/(losses) on:
Investments 219,961,752 41,379,945
Futures contracts -- --
Foreign currency transactions -- --
Change in net unrealized
appreciation/(depreciation) on:
Investments 180,157,821 (592,144,065)
Futures contracts -- --
Foreign currency forward contracts -- --
Foreign currency transactions -- --
Net Change in Net Assets Resulting
From Operations 410,505,883 (540,485,045)
Distributions to Shareholders
From net investment income (10,819,813) (8,525,456)
From net realized gains -- --
Total Distributions to Shareholders (10,819,813) (8,525,456)
Trust Share Transactions (179,757,383) (281,236,979)
Net Increase/(Decrease) in Net Assets 219,928,687 (830,247,480)
Net Assets, Beginning of Period 2,747,571,080 3,577,818,560
Net Assets, End of Period $2,967,499,767 $2,747,571,080
The accompanying notes to the financial statements are an integral part of this statement.
The AAL Mutual Funds
Statement of Changes in Net Assets - continued
AAL Large Company Index Fund AAL Large Company Index Fund II
------------------------------ -------------------------------
For the years ended 4/30/2004 4/30/2003 4/30/2004 4/30/2003
- --------------------------------------------------------------------------------------------------------------------------------
Operations
Net investment income $345,674 $896,812 $503,434 $242,725
Net realized gains/(losses) on:
Investments (6,745,288) (4,052,317) 246,671 (1,705,994)
Futures contracts 349,276 (54,060) 286,596 (102,432)
Change in net unrealized
appreciation/(depreciation) on:
Investments 12,547,918 (5,927,155) 6,407,598 (3,345,226)
Futures contracts (158,007) 143,492 (109,107) 83,795
Net Change in Net Assets Resulting
From Operations 6,339,573 (8,993,228) 7,335,192 (4,827,132)
Distributions to Shareholders
From net investment income (515,759) (823,832) (450,406) (122,309)
Return of capital -- -- -- --
Total Distributions to Shareholders (515,759) (823,832) (450,406) (122,309)
Trust Share Transactions (39,171,034) 8,904,399 19,470,000 3,367,131
Net Increase/(Decrease) in Net Assets (33,347,220) (912,661) 26,354,786 (1,582,310)
Net Assets, Beginning of Period 62,066,525 62,979,186 31,158,825 32,741,135
Net Assets, End of Period $28,719,305 $62,066,525 $57,513,611 $31,158,825
AAL Equity Income Fund AAL Balanced Fund
------------------------------ ------------------------------
For the years ended 4/30/2004 4/30/2003 4/30/2004 4/30/2003
- -------------------------------------------------------------------------------------------------------------------------------
Operations
Net investment income $2,312,192 $2,495,047 $6,411,193 $6,074,943
Net realized gains/(losses) on:
Investments 6,985,872 (26,857,628) 8,335,406 (6,673,563)
Futures contracts -- -- -- --
Change in net unrealized
appreciation/(depreciation) on:
Investments 44,006,861 (40,008,522) 24,974,274 (16,067,320)
Futures contracts -- -- -- --
Net Change in Net Assets Resulting
From Operations 53,304,925 (64,371,103) 39,720,873 (16,665,940)
Distributions to Shareholders
From net investment income (1,473,094) (2,412,080) (7,235,059) (6,481,897)
Return of capital -- (224,768) -- --
Total Distributions to Shareholders (1,473,094) (2,636,848) (7,235,059) (6,481,897)
Trust Share Transactions (15,841,749) (22,644,092) (12,720,369) 79,470,705
Net Increase/(Decrease) in Net Assets 35,990,082 (89,652,043) 19,765,445 56,322,868
Net Assets, Beginning of Period 224,640,186 314,292,229 387,978,307 331,655,439
Net Assets, End of Period $260,630,268 $224,640,186 $407,743,752 $387,978,307
AAL High Yield Bond Fund
------------------------------
For the years ended 4/30/2004 4/30/2003
- ---------------------------------------------------------------------------------------
Operations
Net investment income $9,535,903 $10,223,909
Net realized gains/(losses) on:
Investments 6,892,386 (4,722,489)
Futures contracts -- --
Change in net unrealized
appreciation/(depreciation) on:
Investments (1,159,062) 5,907,656
Futures contracts -- --
Net Change in Net Assets Resulting
From Operations 15,269,227 11,409,076
Distributions to Shareholders
From net investment income (9,847,328) (10,350,092)
Return of capital -- --
Total Distributions to Shareholders (9,847,328) (10,350,092)
Trust Share Transactions 13,020,493 (4,034,434)
Net Increase/(Decrease) in Net Assets 18,442,392 (2,975,450)
Net Assets, Beginning of Period 126,590,890 129,566,340
Net Assets, End of Period $145,033,282 $126,590,890
AAL Municipal Bond Fund AAL Bond Fund
------------------------------ ------------------------------
For the years ended 4/30/2004 4/30/2003 4/30/2004 4/30/2003
- -------------------------------------------------------------------------------------------------------------------------------
Operations
Net investment income $28,408,677 $29,154,850 $20,621,761 $22,779,780
Net realized gains/(losses) on:
Investments 747,865 1,328,662 10,761,715 11,395,757
Futures contracts (407,159) -- -- --
Change in net unrealized
appreciation/(depreciation) on:
Investments (13,992,177) 16,557,031 (16,685,506) 16,823,088
Futures contracts 274,756 -- -- --
Net Change in Net Assets Resulting
From Operations 15,031,962 47,040,543 14,697,970 50,998,625
Distributions to Shareholders
From net investment income (28,409,197) (29,154,858) (23,322,039) (24,313,592)
From net realized gains -- -- -- --
Total Distributions to Shareholders (28,409,197) (29,154,858) (23,322,039) (24,313,592)
Trust Share Transactions (24,142,088) 54,629,516 (51,820,503) 59,992,234
Net Increase/(Decrease) in Net Assets (37,519,323) 72,515,201 (60,444,572) 86,677,267
Net Assets, Beginning of Period 687,387,771 614,872,570 568,914,265 482,236,998
Net Assets, End of Period $649,868,448 $687,387,771 $508,469,693 $568,914,265
AAL Bond Index Fund AAL Money Market Fund
------------------------------ ------------------------------
For the years ended 4/30/2004 4/30/2003 4/30/2004 4/30/2003
- -------------------------------------------------------------------------------------------------------------------------------
Operations
Net investment income $1,798,365 $3,647,249 $1,596,919 $4,644,725
Net realized gains/(losses) on:
Investments 2,235,197 901,692 -- --
Futures contracts -- -- -- --
Change in net unrealized
appreciation/(depreciation) on:
Investments (2,921,884) 3,066,160 -- --
Futures contracts -- -- -- --
Net Change in Net Assets Resulting
From Operations 1,111,678 7,615,101 1,596,919 4,644,725
Distributions to Shareholders
From net investment income (2,237,415) (4,228,371) (1,596,919) (4,644,725)
From net realized gains (1,904,220) -- -- --
Total Distributions to Shareholders (4,141,635) (4,228,371) (1,596,919) (4,644,725)
Trust Share Transactions (37,331,578) 18,718,618 (65,252,943) (76,467,270)
Net Increase/(Decrease) in Net Assets (40,361,535) 22,105,348 (65,252,943) (76,467,270)
Net Assets, Beginning of Period 81,018,398 58,913,050 443,863,143 520,330,413
Net Assets, End of Period $40,656,863 $81,018,398 $378,610,200 $443,863,143
The accompanying notes to the financial statements are an integral part of this statement.
The AAL Mutual Funds
Notes to Financial Statements
April 30, 2004
(1) ORGANIZATION
The AAL Mutual Funds (the "Trust") was organized as a Massachusetts
Business Trust on March 31, 1987, and is registered as an open-end
diversified management investment company under the Investment Company
Act of 1940. The Trust is divided into twenty separate series (the
"Fund(s)"), each with its own investment objective and policies. As of
February 1, 2004, the Trust consists of fifteen equity funds, eight
fixed-income funds and one money market fund of which one equity and
three fixed-income funds have not yet commenced operations. The Trust
commenced operations on July 16, 1987.
The U.S. Government Zero Coupon Target Fund, Series 2006 of the Trust is
presented under a separate annual report.
The Trust offers three classes of shares: Class A, Class B and
Institutional Class. The three classes of shares differ principally in
their respective shareholder servicing and distribution expenses and
arrangements. Class A shares have a 0.25% annual 12b-1 fee (0.125% for
The AAL Money Market Fund) and a maximum front-end sales load of 5.50%
for equity funds and 4.50% for fixed-income funds, excluding The AAL
Money Market Fund. Class B shares are offered at net asset value and a
1.00% annual 12b-1 fee (0.875% for The AAL Money Market Fund). In
addition, Class B shares have a maximum contingent deferred sales charge
of 5.00%. The contingent deferred sales charge declines by 1.00% per
year through the fifth year. Class B shares convert to Class A shares at
the end of the fifth year. Institutional Class shares are offered at net
asset value and have no annual 12b-1 fees. All three classes of shares
have identical rights to earnings, assets and voting privileges, except
for class specific expenses and exclusive rights to vote on matters
affecting only individual classes.
The following Funds offer all three classes of shares: The AAL
Technology Stock Fund, The AAL Aggressive Growth Fund, The AAL Small Cap
Stock Fund, The AAL Small Cap Value Fund, The AAL Mid Cap Stock Fund,
The AAL International Fund, The AAL Capital Growth Fund, The AAL Equity
Income Fund, The AAL Balanced Fund, The AAL High Yield Bond Fund, The
AAL Municipal Bond Fund, The AAL Bond Fund and The AAL Money Market
Fund. The AAL Small Cap Index Fund II, The AAL Mid Cap Index Fund II and
The AAL Large Company Index Fund II offer class A and B shares only. The
AAL Mid Cap Index Fund, The AAL Large Company Index Fund and The AAL
Bond Index Fund offer Institutional Class shares. Effective May 11,
2004, the Trust no longer offers Class B shares of The AAL Small Cap
Index Fund II, The AAL Mid Cap Index Fund II and the AAL Large Company
Index Fund II. As a result, these three Funds' Class B shares were
converted into each Fund's respective Class A shares, prior to the
expiration of the five-year holding period.
Under the Trust's organizational documents, its officers and trustees
are indemnified against certain liabilities arising out of the
performance of their duties to the Trust. In addition, in the normal
course of business, the Trust enters into contracts with vendors and
others that provide general damage clauses. The Trust's maximum exposure
under these contracts is unknown, as this would involve future claims
that may be made against the Trust. However, based on experience, the
Trust expects the risk of loss to be remote.
(2) SIGNIFICANT ACCOUNTING POLICIES
(A) Valuation of Investments -- Securities traded on U.S. or foreign
securities exchanges or included in a national market system are valued
at the official closing price at the close of each business day.
Over-the-counter securities and listed securities for which no price is
readily available are valued at the current bid price considered best to
represent the value at that time. Security prices are based on quotes
that are obtained from an independent pricing service approved by the
Board of Trustees. The pricing service, in determining values of
fixed-income securities, takes into consideration such factors as
current quotations by broker/dealers, coupon, maturity, quality, type of
issue, trading characteristics, and other yield and risk factors it
deems relevant in determining valuations. Securities which cannot be
valued by the approved pricing service are valued using valuations
obtained from dealers that make markets in the securities. Exchange
listed options and futures contracts are valued at the last quoted sales
price.
Fair valuation of international securities -- As many foreign markets
close before the U.S. markets, events may occur between the close of the
foreign market and the close of the U.S. markets that could have a
material impact on the valuation of foreign securities. The Fund, under
the supervision of the Board of Trustees, evaluates the impacts of these
events and may adjust the valuation of foreign securities to reflect the
fair value as of the close of the U.S. markets.
For all Funds other than the AAL Money Market Fund, short-term
securities with maturities of 60 days or less are valued at amortized
cost. Securities held by the AAL Money Market Fund are valued on the
basis of amortized cost (which approximates market value), whereby a
portfolio security is valued at its cost initially, and thereafter
valued to reflect a constant amortization to maturity of any discount or
premium. The AAL Money Market Fund follows procedures necessary to
maintain a constant net asset value of $1.00 per share.
All other securities for which market values are not readily available
are appraised at fair value as determined in good faith under the
direction of the Board of Trustees. As of April 30, 2004, five
securities in The AAL High Yield Bond Fund were valued at fair value,
which represents 0.73% of the Fund's net assets.
(B) Foreign Currency Translation -- The accounting records of each Fund
are maintained in U.S. dollars. Securities and other assets and
liabilities that are denominated in foreign currencies are translated
into U.S. dollars at the daily closing rates of exchange.
Foreign currency amounts related to the purchase or sale of securities
and income and expenses are translated at the exchange rate on the
transaction date. Net realized and unrealized currency gains and losses
are recorded from sales of foreign currency, exchange gains or losses
between the trade date and settlement dates on securities transactions,
and other translation gains or losses on dividends, interest income and
foreign withholding taxes. The Funds do not separately report the effect
of changes in foreign exchange rates from changes in market prices on
securities held. Such changes are included in net realized and
unrealized gain or loss from investments.
For federal income tax purposes, the Trust treats the effect of changes
in foreign exchange rates arising from actual foreign currency
transactions and the changes in foreign exchange rates between the trade
date and settlement date as ordinary income.
(C) Foreign Currency Contracts -- In connection with purchases and sales
of securities denominated in foreign currencies, all Funds except the
Money Market Fund may enter into forward currency contracts.
Additionally, the Funds may enter into such contracts to hedge certain
other foreign currency denominated investments. These contracts are
recorded at market value, and the related realized and unrealized
foreign exchange gains and losses are included in the Statement of
Operations. In the event that counterparties fail to settle these
forward contracts, the funds could be exposed to foreign currency
fluctuations. Foreign currency contracts are valued daily and unrealized
appreciation or depreciation is recorded daily as the difference between
the contract exchange rate and the closing forward rate applied to the
face amount of the contract. A realized gain or loss is recorded at the
time a forward contract is closed. During the year ended April 30, 2004,
The AAL International Fund engaged in this type of investment.
(D) Foreign Denominated Investments -- Foreign denominated assets and
currency contracts may involve more risks than domestic transactions,
including currency risk, political and economic risk, regulatory risk,
and market risk. Certain Funds may also invest in securities of
companies located in emerging markets. Future economic or political
developments could adversely affect the liquidity or value, or both, of
such securities.
(E) Federal Income Taxes -- No provision has been made for income taxes
because the Funds' policy is to qualify as regulated investment
companies under the Internal Revenue Code and distribute substantially
all taxable income on a timely basis. It is also the intention of the
Funds to distribute an amount sufficient to avoid imposition of any
federal excise tax. The Funds, accordingly, anticipate paying no federal
taxes and no federal tax provision was required. Each Fund is treated as
a separate taxable entity for federal income tax purposes. Certain Funds
may utilize earnings and profits distributed to shareholders on the
redemption of shares as part of the dividend paid deduction.
(F) Income and Expenses -- Estimated expenses are accrued daily. The
Funds are charged for those expenses that are directly attributable to
them. Expenses that are not directly attributable to a Fund are
allocated among all appropriate Funds in proportion to their respective
net assets, number of shareholder accounts or other reasonable basis.
Net investment income, non class-specific expenses and realized and
unrealized gains and losses are allocated directly to each class based
upon the relative net asset value of outstanding shares, or the value of
dividend eligible shares, as appropriate for each class of shares.
Interest income is accrued daily and is determined on the basis of
interest or discount earned on all debt securities, including accretion
of market discount and original issue discount and amortization of
premium. Dividend income is recorded on the ex-dividend date. For
preferred stock payment-in-kind securities, income is recorded on the
ex-dividend date in the amount of the value received.
(G) Fees Paid Indirectly -- The Funds have a deposit arrangement with
the custodian whereby interest earned on uninvested cash balances is
used to pay a portion of custodian fees. This deposit arrangement is an
alternative to overnight investments.
(H) Distributions to Shareholders -- Dividends from net investment
income, if available, are declared and paid to each shareholder as a
dividend. Dividend and capital gain distributions are recorded on the
ex-dividend date. With the exception of the Money Market Fund, net
realized gains from securities transactions, if any, are paid at least
annually for all Funds after the close of the fiscal year. Funds
involved in mergers may distribute dividends and capital gains
immediately preceding the merger.
Dividends from the following funds are declared and paid annually: The
AAL Technology Stock, The AAL Aggressive Growth Fund, The AAL Small Cap
Stock Fund, The AAL Small Cap Index Fund II, The AAL Small Cap Value
Fund, The AAL Mid Cap Stock Fund, The AAL Mid Cap Index Fund, The AAL
Mid Cap Index Fund II, The AAL International Fund, The AAL Capital
Growth Fund, The AAL Large Company Index Fund, The AAL Large Company
Index Fund II and The AAL Equity Income Fund. Dividends from The AAL
Balanced Fund are declared and paid quarterly. Dividends from The AAL
High Yield Bond Fund, The AAL Municipal Bond Fund, The AAL Bond Fund,
The AAL Bond Index Fund and The AAL Money Market Fund are declared daily
and paid monthly. Dividends from the Money Market Fund also include any
short-term net realized gains or losses on the sale of securities.
(I) Options -- All Funds except The AAL Money Market Fund may buy put
and call options and write covered call options. The Funds intend to use
such derivative instruments as hedges to facilitate buying or selling
securities or to provide protection against adverse movements in
security prices or interest rates. The Funds may also enter into options
contracts to protect against adverse foreign exchange rate fluctuations.
Option contracts are valued daily and unrealized appreciation or
depreciation is recorded. A Fund will realize a gain or loss upon
expiration or closing of the option transaction. When an option is
exercised, the proceeds upon sale for a written call option or the cost
of a security for purchased put and call options is adjusted by the
amount of premium received or paid. During the year ended April 30,
2004, The AAL Aggressive Growth Fund engaged in this type of investment.
(J) Financial Futures Contracts -- Certain Funds may use futures
contracts to manage the exposure to interest rate and market
fluctuations. Gains or losses on futures contracts can offset changes in
the yield of securities. When a futures contract is opened, cash or
other investments equal to the required "initial margin deposit" are
pledged to the broker. Additional securities held by the Funds may be
earmarked as collateral for open futures contracts. The futures
contract's daily change in value ("variation margin") is either paid to
or received from the broker, and is recorded as an unrealized gain or
loss. When the contract is closed, the realized gain or loss is recorded
equal to the difference between the value of the contract when opened
and the value of the contract when closed. During the year ended April
30, 2004, The AAL Small Cap Index Fund II, The AAL Mid Cap Index Fund,
The AAL Mid Cap Index Fund II, The AAL Large Company Index Fund, The AAL
Large Company Index Fund II, and The AAL Municipal Bond Fund engaged in
this type of investment.
(K) Mortgage Dollar Roll Transactions -- Certain of the Funds enter into
dollar roll transactions issued by GNMA, FNMA and FHLMC, in which the
Funds sell mortgage securities and simultaneously agree to repurchase
similar (same type, coupon and maturity) securities at a later date at
an agreed upon price. During the period between the sale and repurchase,
the Funds forgo principal and interest paid on the mortgage securities
sold. The Funds are compensated by the interest earned on the cash
proceeds of the initial sale and from negotiated fees paid by brokers
offered as an inducement to the Funds to "roll over" their purchase
commitments. The AAL Balanced Fund, The AAL Bond Fund and The AAL Bond
Index Fund earned $1,336,087, $4,952,607 and $291,037, respectively,
from such fees for the year ended April 30, 2004.
(L) Securities Lending -- Effective October 31, 2003, The AAL Mutual
Funds entered into a Securities Lending Agreement (the "Agreement") with
State Street Bank and Trust Company ("State Street Bank"). The Agreement
authorizes State Street Bank to lend securities to authorized borrowers
on behalf of the Funds. Pursuant to the Agreement, all loaned securities
are collateralized by cash, U.S. Government securities, letters of
credit and other types of collateral that are equal to at least 102% of
the value of the loaned securities, plus any accrued interest. All cash
collateral received is invested in a State Street Bank Money Market
fund. As of April 30, 2004, all Funds except The AAL Municipal Bond Fund
and The AAL Money Market Fund had securities on loan. The value of
securities on loan is as follows:
Securities
Fund on Loan
- -----------------------------------------------------------------
The AAL Technology Stock Fund $ 2,784,059
The AAL Aggressive Growth Fund 1,260,404
The AAL Small Cap Stock Fund 68,063,063
The AAL Small Cap Index Fund II 9,419,948
The AAL Small Cap Value Fund 7,413,957
The AAL Mid Cap Stock Fund 86,366,046
The AAL Mid Cap Index Fund 3,121,318
The AAL Mid Cap Index Fund II 2,948,507
The AAL International Fund 38,733,140
The AAL Capital Growth Fund 42,276,027
The AAL Large Company Index Fund 567,796
The AAL Large Company Index Fund II 681,630
The AAL Equity Income Fund 5,084,670
The AAL Balanced Fund 19,131,056
The AAL High Yield Fund 19,509,314
The AAL Bond Fund 50,476,581
The AAL Bond Index Fund 8,979,815
(M) The Impact of Initial Public Offerings on Performance -- Each Fund
may invest in an initial public offering ("IPO") of a security. On
occasion the Fund will participate in an oversubscribed IPO. Because the
IPO is oversubscribed, this presents the Fund with the opportunity to
"flip" or trade the security at higher prices resulting in a profit for
the Fund. Investments in IPO's may have a magnified performance impact
on a Fund with a small asset base. A Fund with enhanced performance from
"flipping" IPO's may not experience similar performance as its assets
grow. However, participation in an IPO may result in a loss for the
Fund.
(N) When-Issued and Delayed Delivery Transactions -- The Funds may
engage in when-issued or delayed delivery transactions. To the extent
that a Fund engages in such transactions, it will do so for the purpose
of acquiring securities consistent with its investment objectives and
policies and not for the purpose of investment leverage or to speculate
on interest rate changes. To ensure there is no investment leverage,
assets of the Fund are earmarked on the trade date on the Fund's records
in a dollar amount sufficient to make payment for the securities to be
purchased. Income is not accrued until settlement date.
(O) Credit Risk -- The Funds may be susceptible to credit risk to the
extent an issuer defaults on its payment obligation. The Funds' policy
is to monitor the creditworthiness of issuers. Interest receivables on
defaulted securities are monitored for ability to collect payments in
default and are adjusted accordingly.
(P) Accounting Estimates -- The preparation of financial statements in
conformity with accounting principles generally accepted in the United
States of America require management to make estimates and assumptions
that affect the reported amounts of assets and liabilities and
disclosure of contingent assets and liabilities at the date of the
financial statements and the reported amounts of income and expenses
during the reporting period. Actual results could differ from those
estimates.
(Q) Other -- For financial statement purposes, investment security
transactions are accounted for on the trade date. Realized gains and
losses from investment transactions are determined on a specific cost
identification basis, which is the same basis used for federal income
tax purposes.
(3) FEES AND COMPENSATION PAID TO AFFILIATES
(A) Investment Advisory Fees -- The Trust has entered into an Investment
Advisory Agreement with Thrivent Investment Management Inc. (Thrivent
Investment Mgt.), ("the Adviser"). Thrivent Investment Mgt. is a wholly
owned subsidiary of Thrivent Financial for Lutherans (Thrivent
Financial). Under the Advisory Agreement, each of the Funds pays a fee
for investment advisory services. The fees are accrued daily and paid
monthly. The annual rates of fees as a percent of average daily net
assets under the investment advisory agreement were as follows:
(M - Millions) $0 to $50 to $100 to $200 to $500 to $1,000 to Over
Fund $50M $100M $200M $500M $1,000M $5,000M $5,000M
- ---------------------------------------------------------------------------------------------------------------------------
The AAL Technology Stock Fund 0.75% 0.75% 0.75% 0.75% 0.75% 0.75% 0.75%
The AAL Aggressive Growth Fund 0.80% 0.80% 0.75% 0.75% 0.70% 0.70% 0.70%
The AAL Small Cap Stock Fund 0.70% 0.70% 0.70% 0.65% 0.65% 0.65% 0.65%
The AAL Small Cap Index Fund II 0.25% 0.25% 0.25% 0.25% 0.25% 0.25% 0.25%
The AAL Small Cap Value Fund 0.70% 0.70% 0.70% 0.70% 0.70% 0.70% 0.70%
The AAL Mid Cap Stock Fund 0.70% 0.70% 0.70% 0.65% 0.65% 0.60% 0.60%
The AAL Mid Cap Index Fund 0.25% 0.20% 0.20% 0.20% 0.20% 0.20% 0.20%
The AAL Mid Cap Index Fund II 0.25% 0.25% 0.25% 0.25% 0.25% 0.25% 0.25%
The AAL International Fund 0.65% 0.60% 0.60% 0.60% 0.60% 0.60% 0.60%
The AAL Capital Growth Fund 0.65% 0.65% 0.65% 0.65% 0.575% 0.50% 0.45%
The AAL Large Company Index Fund 0.25% 0.175% 0.175% 0.175% 0.175% 0.175% 0.175%
The AAL Large Company Index Fund II 0.25% 0.25% 0.25% 0.25% 0.25% 0.25% 0.25%
The AAL Equity Income Fund 0.45% 0.45% 0.45% 0.45% 0.45% 0.45% 0.45%
The AAL Balanced Fund 0.55% 0.55% 0.55% 0.55% 0.55% 0.55% 0.55%
The AAL High Yield Bond Fund 0.55% 0.55% 0.55% 0.55% 0.55% 0.55% 0.55%
The AAL Municipal Bond Fund 0.45% 0.45% 0.45% 0.45% 0.45% 0.45% 0.45%
The AAL Bond Fund 0.45% 0.45% 0.45% 0.45% 0.45% 0.45% 0.45%
The AAL Bond Index Fund 0.25% 0.175% 0.175% 0.175% 0.175% 0.175% 0.175%
The AAL Money Market Fund 0.50% 0.50% 0.50% 0.50% 0.45% 0.45% 0.45%
The Adviser pays Oechsle International Advisors, LLC an annual
subadvisory fee for performance of subadvisory services for The AAL
International Fund. The subadvisory fee, which is paid by the Adviser
from its advisory fee, is equal to an annual fee of 0.40% on the first
$50 million of average daily net assets and 0.35% of average daily net
assets over $50 million.
The Adviser pays Pacific Investment Management Company, LLC (PIMCO) an
annual subadvisory fee for performance of subadvisory services for The
AAL High Yield Bond Fund. The subadvisory fee, which is paid by the
Adviser from its advisory fee, is 0.25% of average daily net assets.
Effective June 1, 2004, the subadvisory agreement was terminated.
Effective June 1, 2004, the Adviser entered into a subadvisory agreement
with T. Rowe Price Associates, Inc. for performance of subadvisory
services for The AAL Small Cap Value Fund. The subadvisory fee, which is
paid by the Adviser from its advisory fee, is 0.60% of average daily net
assets.
From January 1, 2003, until December 31, 2003, the following expense
reimbursements were in effect, persuant to a contract: The AAL
Technology Stock Fund, 1.00% and 1.75% of the average daily net assets
of Class A and Class B shares, respectively; The AAL Small Cap Index
Fund II, 0.15% and 0.20% of the average daily net assets of Class A and
Class B shares, respectively; The AAL Small Cap Value Fund, 0.50% of the
average daily net assets of Class A, Class B and Institutional Class
shares; The AAL Mid Cap Index Fund II, 0.50% of the average daily net
assets of Class B shares; and The AAL Large Company Index Fund II, 0.75%
of the average daily net assets of Class A and Class B shares. Effective
January 10, 2003, the expense reimbursements in effect for The AAL Money
Market Fund were 0.10% and 0.15% of the average daily net assets of
Class A and Class B shares, respectively.
On January 10, 2003, an additional voluntary expense reimbursement of
0.25% of average daily net assets for the Class B shares of The AAL
Money Market Fund went into effect. This voluntary expense reimbursement
may be discontinued at any time.
Effective January 1, 2004, the following voluntary expense
reimbursements were in effect: The AAL Technology Stock Fund, 0.50% and
1.00% of the average daily net assets of Class A and Class B shares,
respectively; The AAL Small Cap Index Fund II, 0.20% of the average
daily net assets of Class B shares; The AAL Small Cap Value Fund, 0.50%
of the average daily net assets of Class A, Class B and Institutional
Class shares; The AAL Mid Cap Index Fund II and 0.50% of the average
daily net assets of Class B shares; The AAL Large Company Index Fund II,
0.75% of the average daily net assets of Class A and Class B shares; and
The AAL Money Market Fund, 0.10% and 0.40% of the average daily net
assets of Class A and Class B shares, respectively. Also effective on
January 1, 2004, The AAL Small Cap Index Fund II and The AAL Mid Cap
Index Fund II Class A share expenses were voluntarily reimbursed to
limit expenses to 0.95% and 0.90%, respectively, of average daily net
assets. Effective February 1, 2004, Class B share expenses were
voluntarily reimbursed to limit expenses to 2.75% of average daily net
assets for The AAL Technology Stock Fund, The AAL Aggressive Growth
Fund, The AAL Small Cap Stock Fund, The AAL Small Cap Index Fund II, The
AAL Small Cap Value Fund, The AAL Mid Cap Stock Fund, The AAL Mid Cap
Index Fund II and The AAL International Fund. These voluntary expense
reimbursements may be discontinued at any time.
Each non-money market Fund may invest in The AAL Money Market Fund
subject to certain limitations. The following Funds invested cash in The
AAL Money Market Fund during the period: The AAL Technology Stock Fund,
The AAL Aggressive Growth Fund, The AAL Small Cap Stock Fund, The AAL
Small Cap Index Fund II, The AAL Small Cap Value Fund, The AAL Mid Cap
Stock Fund, The AAL Mid Cap Index Fund, The AAL Mid Cap Index II Fund,
The AAL Capital Growth Fund, The AAL Large Company Index Fund, The AAL
Large Company Index Fund II, The AAL Equity Income Fund, The AAL
Balanced Fund, The AAL Bond Index Fund and The AAL Bond Fund. These
related-party transactions are subject to the same terms as non-related
party transactions except that, to avoid duplicate investment advisory
fees, the Funds are reimbursed for the amount of investment advisory
fees paid to the Adviser through The AAL Money Market Fund.
(B) Distribution and Shareholder Servicing Plans -- Thrivent Investment
Mgt. is also the Trust's distributor. The Trust has adopted a
Distribution Plan ("the Plan") pursuant to Rule 12b-1 under the
Investment Company Act of 1940. Class A shares have a Rule 12b-1 fee of
0.25% (0.125% for The AAL Money Market Fund) of average net assets.
Class B Shares have a Rule 12b-1 fee of 1.0% (0.875% for The AAL Money
Market Fund) of average net assets.
The Trust has also contracted with the Adviser for certain shareholder
maintenance services. These shareholder services include: pre-processing
and quality control of new accounts, shareholder correspondence, account
response and answering customer inquires regarding account status, and
facilitating shareholder telephone transactions. Fees and cost
reimbursements charged to the Funds under terms of the contract
approximated $3.60 per year per shareholder account. Effective May 1,
2004, the shareholder maintenance contract was terminated.
(C) Sales Charges and Other Fees -- For the year ended April 30, 2004,
Thrivent Investment Mgt. received $16,291,621 of aggregate underwriting
concessions from the sales of the Trust's Class A and B shares and
aggregate contingent deferred sales charges of $295,920 from redemptions
of Class A and Class B shares. Sales charges are not an expense of the
Trust and are not reflected in the financial statements of any of the
Funds.
The Trust has entered into an accounting services agreement with
Thrivent Financial pursuant to which Thrivent Financial provides certain
accounting personnel and services. For the year ended April 30, 2004,
Thrivent Financial received aggregate fees for accounting personnel and
services of $945,014 from the Trust.
Effective January 1, 2004, Thrivent Investment Mgt. entered an agreement
to provide certain administrative personnel and services to the Funds.
For the year ended April 30, 2004 Thrivent Investment Mgt. received
aggregate fees for administrative personnel and services of $484,555
from the Trust.
In addition, effective April 24, 2004, the Trust entered into an
agreement with Thrivent Financial Investor Services Inc. (Thrivent
Investor Services) to provide the Funds with transfer agent services.
For the year ended April 30, 2004, Thrivent Investor Services received
no fees for transfer agent services from the Trust.
Each Trustee of the Funds who is not affiliated with Thrivent Financial
or the Adviser receives an annual fee of $65,000 from the Funds for
services as a Trustee. In addition, the lead independent director and
independent chairman each receive an additional fee of $2,500. Each
Trustee is eligible to participate in a deferred compensation plan with
respect to these fees. Participants in the plan may designate their
deferred Trustee's fees as if invested in any one of the Funds. The
value of each Trustee's deferred compensation account will increase or
decrease as if it were invested in shares of the selected Funds. The
deferred fees remain in the appropriate Fund until distribution in
accordance with the plan.
Those Trustees not participating in the above plan received $58,859 in fees
from the Trust for the year ended April 30, 2004. No remuneration has been
paid by the Trust to any of the officers or affiliated Trustees of the
Trust. In addition, the Trust reimbursed unaffiliated Trustees for
reasonable expenses incurred in relation to attendance at the meetings.
Certain officers and non-independent trustees of the Funds are officers
and directors of Thrivent Investment Mgt. and Thrivent Investor
Services; however, they receive no compensation from the Funds.
(4) TAX INFORMATION
Distributions are based on amounts calculated in accordance with the
applicable federal income tax regulations, which may differ from
accounting principles generally accepted in the United States of
America. To the extent that these differences are permanent in nature,
such amounts are reclassified within the capital accounts based on their
federal tax-basis treatment; temporary differences do not require
reclassifications.
On the Statement of Assets and Liabilities, as a result of permanent
book-to-tax differences, reclassification adjustments were made as
follows [Increase/(Decrease)]:
Accumulated Accumulated
Net Investment Net Realized Trust
Fund Income/(Loss) Gain/(Loss) Capital
- ----------------------------------------------------------------------
AAL Technology Stock $ 472,414 $ -- $ (472,414)
AAL Aggressive Growth 613,646 632 (614,278)
AAL Small Cap Stock 2,872,539 (3,118,539) 246,000
AAL Small Cap Index II 69,623 (79,323) 9,700
AAL Small Cap Value 216,722 (224,722) 8,000
AAL Mid Cap Stock 3,078,671 63,973 (3,142,644)
AAL Mid Cap Index (4,062) 4,062 --
AAL Mid Cap Index II (5,578) 5,578 --
AAL International 109,438 (109,438) --
AAL Capital Growth -- (7,500,000) 7,500,000
AAL Large
Company Index (4,530) 5,906,547 (5,902,017)
AAL Large
Company Index II (4,143) 4,143 --
AAL Equity Income (27,492) 27,492 --
AAL Balanced 753,142 (754,026) 884
AAL High Yield Bond 287,526 (287,526) --
AAL Bond 2,699,846 (2,699,846) --
AAL Bond Index 438,992 (438,992) --
AAL Money Market (35,211) -- 35,211
At April 30, 2004, the components of distributable earnings on a tax
basis were as follows:
Undistributed Undistributed
Ordinary Long-Term
Fund Income Capital Gain
- ----------------------------------------------------------------------
AAL Small Cap Stock $12,731,934 $ 11,407,705
AAL Small Cap Index II -- 1,238,480
AAL Small Cap Value 294,930 1,353,679
AAL Mid Cap Index 145,716 394,989
AAL Mid Cap Index II 6,123 --
AAL International 1,176,915 --
AAL Capital Growth 1,858,376 205,974,665
AAL Large Company Index 110,274 --
AAL Large Company Index II 170,405 --
AAL Equity Income 815,845 --
AAL Balanced 537,115 --
AAL High Yield Bond 264,906 --
AAL Municipal Bond (18,425) --
AAL Bond 120,102 493,715
AAL Bond Index 57,496 --
AAL Money Market 22,953 --
At April 30, 2004, the following Funds had accumulated net realized
capital loss carryovers expiring as follows:
Capital Loss Expiration
Fund Carryover Year
- ---------------------------------------------------------------
AAL Technology Stock $ 570,441 2009
13,587,499 2010
13,695,973 2011
1,279,762 2012
-------------
$ 29,133,675
=============
AAL Aggressive Growth $14,959,072 2010
21,019,713 2011
-------------
$ 35,978,785
=============
AAL Mid Cap Stock $ 50,546,407 2011
=============
AAL Mid Cap Index II $ 1,160,319 2012
=============
AAL International $ 26,492,905 2010
46,508,608 2011
-------------
$ 73,001,513
=============
AAL Large Company Index $ 45,813 2009
105,571 2010
3,211,202 2011
1,730,425 2012
-------------
$ 5,093,011
=============
AAL Large Company Index II $ 90,757 2010
892,348 2011
506,007 2012
-------------
$ 1,489,112
=============
AAL Equity Income $ 916,607 2010
19,454,562 2011
5,864,750 2012
-------------
$ 26,235,919
=============
AAL Balanced $ 9,247,748 2011
=============
AAL High Yield Bond $ 38,563,635 2009
14,003,544 2010
12,668,032 2011
-------------
$ 65,235,211
=============
AAL Municipal Bond $ 9,591,235 2008
328,490 2010
-------------
$ 9,919,725
=============
To the extent that these Funds realize future net capital gains, taxable
distributions will be reduced by any unused capital loss carryovers, if
any, to the extent permitted by the Code.
The following Funds deferred, on a tax basis, the following post-October
2003 losses:
Fund Post-October Loss
- -----------------------------------------------------------------------
AAL Municipal Bond $94,139
AAL Bond Index 21,869
These amounts are deferred and deemed to occur in the next fiscal year.
The tax character of distributions paid during the years ended
April 30, 2004 and 2003 was as follows:
Tax-Exempt Income Ordinary Income Long-Term Capital Gain
Fund 2004 2003 2004 2003 2004 2003
- -------------------------------------------------------------------------------------------------------------
AAL Small Cap Index II $ -- $ -- $ -- $ -- $ 116,288 $135,306
AAL Small Cap Value -- -- -- 206,590 -- 173
AAL Mid Cap Index -- -- 212,516 295,250 100,189 452,010
AAL Mid Cap Index II -- -- -- -- -- 330,723
AAL International -- -- 220,677 615,956 -- --
AAL Capital Growth -- -- 10,819,813 8,525,456 -- --
AAL Large Company Index -- -- 515,759 823,832 -- --
AAL Large Company Index II -- -- 450,406 122,309 -- --
AAL Equity Income -- -- 1,473,094 2,636,848* -- --
AAL Balanced -- -- 7,235,059 6,481,897 -- --
AAL High Yield Bond -- -- 9,847,328 10,350,092 -- --
AAL Municipal Bond 28,120,568 28,802,230 288,629 352,628 -- --
AAL Bond -- -- 23,322,039 24,313,592 -- --
AAL Bond Index -- -- 2,520,483 4,228,371 1,621,152 --
AAL Money Market -- -- 1,596,919 4,644,725 -- --
*For the year ended April 30, 2003, The AAL Equity Income Fund had a
return of capital of $224,768.
At April 30, 2004, the gross unrealized appreciation and depreciation of
investments, based on cost for federal income tax purposes, were as
follows:
Net Unrealized
Federal Unrealized Unrealized Appreciation
Fund Tax Cost Appreciation (Depreciation) (Depreciation)
- ---------------------------------------------------------------------------------------------------------
AAL Technology Stock $ 58,871,710 $ 3,246,346 $ (11,103,124) $ (7,856,778)
AAL Aggressive Growth 42,673,149 6,220,904 (1,645,340) 4,575,564
AAL Small Cap Stock 416,937,666 77,262,224 (7,237,301) 70,024,923
AAL Small Cap Index II 43,111,568 8,322,816 (3,067,281) 5,255,535
AAL Small Cap Value 61,965,521 13,531,524 (1,271,890) 12,259,634
AAL Mid Cap Stock 858,265,624 98,483,873 (23,822,298) 74,661,575
AAL Mid Cap Index 31,481,088 6,654,109 (3,220,559) 3,433,550
AAL Mid Cap Index II 40,632,456 8,924,253 (3,045,043) 5,879,210
AAL International 201,060,499 21,072,836 (8,065,279) 13,007,557
AAL Capital Growth 2,188,022,375 952,538,839 (129,154,255) 823,384,584
AAL Large Company Index 30,057,137 2,920,879 (3,760,722) (839,843)
AAL Large Company Index II 63,697,392 4,359,781 (7,949,602) (3,589,821)
AAL Equity Income 237,292,140 41,274,498 (8,991,316) 32,283,182
AAL Balanced 451,622,422 26,893,236 (13,657,131) 13,236,105
AAL High Yield Bond 156,867,554 5,639,778 (2,699,467) 2,940,311
AAL Municipal Bond 604,566,190 38,312,277 (3,777,941) 34,534,336
AAL Bond 697,761,808 6,920,018 (6,175,311) 744,707
AAL Bond Index 59,062,625 802,655 (644,042) 158,613
AAL Money Market 379,334,081 -- -- --
Shareholder Notification of Federal Tax Status (unaudited)
The Funds designate the following percentages of dividends declared from net
investment income as dividends qualifying for the 70% dividends received
deduction for corporations or as qualified dividend income for individuals
under the Jobs and Growth Tax Relief Reconciliation Act of 2003:
Dividends Qualified
Received Dividend
Deduction for Income for
Fund Corporations Individuals
- ---------------------------------------------------------------
AAL Mid Cap Index 76% 83%
AAL International -- 78%
AAL Capital Growth 100% 100%
AAL Large Company Index 100% 100%
AAL Large Company Index II 100% 100%
AAL Equity Income 100% 100%
AAL Balanced 42% 42%
The AAL Municipal Bond Fund designates 97.43% of the dividends declared
from net investment income as exempt from federal income tax for the
year ended April 30, 2004.
The Funds designate the following amounts as distributions of long-term
capital gains: The AAL Small Cap Index Fund II, $122,330; The AAL Mid
Cap Index Fund, $100,189; The AAL Capital Growth Fund, $7,500,000; and
The AAL Bond Index Fund, $1,621,152. These amounts may include earnings
and profits distributed to shareholders on the redemption of shares as
part of the dividend paid deduction.
(5) DISTRIBUTIONS BY CLASS
Distributions to shareholders, by class, for the years ended April 30, 2004
and 2003 were as follows:
Net Investment Income
-------------------------------------------------------------------------------
2004 2003
-------------------------------------- -------------------------------------
Institutional Institutional
Fund Class A Class B Class Class A Class B Class
- ----------------------------------------------------------------------------- -------------------------------------
The AAL International Fund $ 197,851 $ -- $ 22,826 $ 578,875 $ -- $ 37,081
The AAL Capital Growth Fund 10,195,390 -- 624,423 8,119,482 -- 405,974
The AAL Large Company Index Fund II 450,406 -- -- 122,309 -- --
The AAL Equity Income Fund * 1,356,979 -- 116,115 2,535,494 5,043 96,311
The AAL Balanced Fund 4,643,481 143,357 2,448,221 5,111,830 221,480 1,148,587
The AAL High Yield Bond Fund 9,192,442 384,178 270,708 9,575,283 511,785 263,024
The AAL Municipal Bond Fund 27,816,678 443,153 149,366 28,498,469 433,744 222,645
The AAL Bond Fund 21,399,539 454,489 1,468,011 22,638,728 379,801 1,295,063
The AAL Money Market Fund 976,431 1,593 618,895 3,391,021 12,976 1,240,728
Net Realized Gains
-------------------------------------------------------------------------------
2004 2003
-------------------------------------- -------------------------------------
Institutional Institutional
Fund Class A Class B Class Class A Class B Class
- ----------------------------------------------------------------------------- -------------------------------------
The AAL Small Cap Index Fund II $ 103,953 $ 12,335 N/A $ 123,156 $ 12,150 N/A
The AAL Small Cap Value Fund -- -- -- 168,998 16,195 $21,570
The AAL Mid Cap Index Fund II -- -- N/A 302,359 28,364 N/A
* For the year ended April 30, 2003, distributions from net investment
income for The AAL Equity Income Fund had a return of capital of
$218,119 for Class A shares and $6,649 for Institutional Class shares.
No Funds had a return of capital for the year ended April 30, 2004. (6)
(6) SECURITY TRANSACTIONS
(A) Purchases and Sales of Investment Securities -- For the year ended
April 30, 2004, the cost of purchases and the proceeds from sales of
investment securities other than U.S. Government and short-term
securities were as follows:
In thousands
-----------------------------
Fund Purchases Sales
- ---------------------------------------------------------------
The AAL Technology Stock Fund $ 32,149 $ 28,396
The AAL Aggressive Growth Fund 47,491 44,730
The AAL Small Cap Stock Fund 377,568 391,134
The AAL Small Cap Index Fund II 11,107 5,408
The AAL Small Cap Value Fund 52,557 39,386
The AAL Mid Cap Stock Fund 946,973 1,008,450
The AAL Mid Cap Index Fund 6,736 3,347
The AAL Mid Cap Index Fund II 11,615 10,686
The AAL International Fund 117,372 121,992
The AAL Capital Growth Fund 598,988 904,190
The AAL Large Company Index Fund 7,711 45,235
The AAL Large Company Index Fund II 21,957 2,433
The AAL Equity Income Fund 60,826 74,721
The AAL Balanced Fund 162,167 208,638
The AAL High Yield Bond Fund 121,030 116,678
The AAL Municipal Bond Fund 71,579 68,711
The AAL Bond Fund 390,044 443,760
The AAL Bond Index Fund 12,974 25,281
Purchases and sales of U.S. Government securities were:
In thousands
-----------------------------
Fund Purchases Sales
- ---------------------------------------------------------------
The AAL Balanced Fund $ 576,953 $ 563,334
The AAL Bond Fund 2,135,070 2,102,632
The AAL Bond Index Fund 137,373 162,444
(B) Investments in Restricted Securities -- The AAL High Yield Bond Fund
owns restricted securities that were purchased in private placement
transactions without registration under the Securities Act of 1933.
Unless such securities subsequently become registered, they generally
may be resold only in privately negotiated transactions with a limited
number of purchasers. The aggregate value of restricted securities was
$2,617,140 at April 30, 2004, which represented 1.81% of the net assets
of the AAL High Yield Bond Fund. The Funds have no right to require
registration of unregistered securities.
(C) Investments in High-Yielding Securities -- The AAL High Yield Bond
Fund invests primarily in high-yielding fixed-income securities. Each of
the other Funds except The AAL Municipal Bond Fund and The AAL Money
Market Fund may also invest in high-yielding securities. These
securities will typically be in the lower rating categories or will be
non-rated and generally will involve more risk than securities in the
higher rating categories. Lower rated or unrated securities are more
likely to react to developments affecting market risk and credit risk
than are more highly rated securities, which react primarily to
movements in the general level of interest rates.
(D) Investments in Options and Futures Contracts -- The movement in the
price of the security underlying an option or futures contract may not
correlate perfectly with the movement in the prices of the portfolio
securities being hedged. A lack of correlation could render the Fund's
hedging strategy unsuccessful and could result in a loss to the Fund. In
the event that a liquid secondary market would not exist, the Fund could
be prevented from entering into a closing transaction, which could
result in additional losses to the Fund.
(E) Written Option Contracts -- The number of contracts and premium
amounts associated with call option contracts written during the year
ended April 30, 2004, were as follows:
AAL Aggressive Growth Fund
-----------------------------
Number of Premium
Contracts Amount
- ---------------------------------------------------------------
Balance at April 30, 2003 -- $ --
Opened 144 14,188
Closed (131) (13,173)
Expired (11) (731)
Exercised -- --
--------- ----------
Balance at April 30, 2004 2 $ 284
========= ==========
(7) INVESTMENTS IN AFFILIATES
Affiliated issuers, as defined under the Investment Company Act of 1940,
include those in which the Fund's holdings of an issuer represent 5% or more
of the outstanding voting securities of an issuer, or any affiliated mutual
fund. A summary of transactions for the year ended April 30, 2004, in The
AAL Money Market Fund, is as follows:
Gross Gross Balance of Shares Dividend Income
Purchases and Sales and Held April 30, Value May 1, 2003 -
Fund Additions Reductions 2004 April 30, 2004 April 30, 2004
- ----------------------------------------------------------------------------------------------------------------------------
The AAL Technology Stock Fund $ 9,300,669 $ 9,048,497 1,808,961 $ 1,808,961 $ 11,432
The AAL Aggressive Growth Fund 7,951,405 8,420,208 645,986 645,986 4,375
The AAL Small Cap Stock Fund 95,815,803 86,320,510 11,384,032 11,384,032 61,877
The AAL Small Cap Index Fund II 8,456,256 7,207,865 1,310,309 1,310,309 4,701
The AAL Small Cap Value Fund 18,030,826 16,376,083 3,021,618 3,021,618 12,749
The AAL Mid Cap Stock Fund 34,738,233 35,734,232 11,412,934 11,412,934 65,302
The AAL Mid Cap Index Fund 9,200,461 8,987,929 743,917 743,917 4,774
The AAL Mid Cap Index Fund II 10,264,001 8,951,572 1,848,410 1,848,410 6,102
The AAL Capital Growth Fund 41,930,207 39,121,873 11,348,795 11,348,795 56,067
The AAL Large Company Index Fund 9,811,309 11,265,307 1,258,720 1,258,720 5,182
The AAL Large Company Index Fund II 16,817,249 15,342,975 2,644,795 2,644,795 8,630
The AAL Equity Income Fund 34,226,328 30,047,060 8,398,228 8,398,228 38,785
The AAL Balanced Fund 41,477,743 42,729,668 11,343,227 11,343,227 65,549
The AAL Bond Fund 41,384,165 40,412,707 11,410,769 11,410,769 66,366
The AAL Bond Index Fund 2,232,087 4,180,417 1,970,640 1,970,640 14,135
(8) SHARES OF BENEFICIAL INTEREST
The Master Trust Agreement permits the Trustees to issue an unlimited number
of full and fractional shares of beneficial interest of all of the Funds.
Transactions in Fund shares were as follows:
The AAL Technology Stock Fund
----------------------------------------------------------------------------------------
Class A Class B Institutional Class
---------------------------- ---------------------------- ----------------------------
Year Ended April 30, 2003 Shares Amount Shares Amount Shares Amount
- ------------------------------- ------------- ------------- ------------- ------------- ------------- -------------
Sold 4,378,722 $ 10,489,136 322,042 $ 750,091 1,021,683 $ 2,634,557
Redeemed (2,641,039) (6,232,216) (93,926) (214,226) (2,620,400) (7,068,273)
------------- ------------- ------------- ------------- ------------- -------------
Net change 1,737,683 $ 4,256,920 228,116 $ 535,865 (1,598,717) $ (4,433,716)
============= ============= ============= ============= ============= =============
Year Ended April 30, 2004
- -------------------------
Sold 4,806,864 $ 15,567,018 478,699 $ 1,515,638 15,237 $ 52,999
Redeemed (3,544,283) (11,544,431) (290,521) (892,403) (3,779) (13,549)
------------- ------------- ------------- ------------- ------------- -------------
Net change 1,262,581 $ 4,022,587 188,178 $ 623,235 11,458 $ 39,450
============= ============= ============= ============= ============= =============
The AAL Aggressive Growth Fund
----------------------------------------------------------------------------------------
Class A Class B Institutional Class
---------------------------- ---------------------------- ----------------------------
Year Ended April 30, 2003 Shares Amount Shares Amount Shares Amount
- ------------------------------- ------------- ------------- ------------- ------------- ------------- -------------
Sold 2,009,788 $ 7,533,552 225,924 $ 815,411 363,729 $ 1,469,145
Redeemed (1,650,657) (5,998,338) (80,046) (285,286) (1,081,450) (4,284,327)
------------- ------------- ------------- ------------- ------------- -------------
Net change 359,131 $ 1,535,214 145,878 $ 530,125 (717,721) $ (2,815,182)
============= ============= ============= ============= ============= =============
Year Ended April 30, 2004
- -------------------------
Sold 1,999,162 $ 8,712,893 242,878 $ 1,011,955 11,474 $ 54,045
Redeemed (1,347,386) (5,822,805) (212,533) (864,712) (2,570) (11,929)
------------- ------------- ------------- ------------- ------------- -------------
Net change 651,776 $ 2,890,088 30,345 $ 147,243 8,904 $ 42,116
============= ============= ============= ============= ============= =============
The AAL Small Cap Stock Fund
----------------------------------------------------------------------------------------
Class A Class B Institutional Class
---------------------------- ---------------------------- ----------------------------
Year Ended April 30, 2003 Shares Amount Shares Amount Shares Amount
- ------------------------------- ------------- ------------- ------------- ------------- ------------- -------------
Sold 3,978,322 $ 47,496,197 344,965 $ 3,866,489 413,374 $ 5,035,811
Redeemed (4,121,616) (46,901,963) (805,925) (8,837,854) (194,264) (2,236,645)
------------- ------------- ------------- ------------- ------------- -------------
Net change (143,294) $ 594,234 (460,960) $ (4,971,365) 219,110 $ 2,799,166
============= ============= ============= ============= ============= =============
Year Ended April 30, 2004
- -------------------------
Sold 3,342,207 $ 50,108,302 342,789 $ 4,814,140 104,729 $ 1,652,803
Redeemed (3,279,853) (48,832,120) (621,536) (8,523,200) (29,772) (487,580)
------------- ------------- ------------- ------------- ------------- -------------
Net change 62,354 $ 1,276,182 (278,747) $ (3,709,060) 74,957 $ 1,165,223
============= ============= ============= ============= ============= =============
The AAL Small Cap Index Fund II
-----------------------------------------------------------
Class A Class B
---------------------------- ----------------------------
Year Ended April 30, 2003 Shares Amount Shares Amount
- -------------------------------------- ------------- ------------- ------------- -------------
Sold 682,065 $ 6,246,710 86,130 $ 762,168
Dividends and distributions reinvested 11,890 122,343 1,199 12,149
Redeemed (281,412) (2,448,619) (11,373) (95,183)
------------- ------------- ------------- -------------
Net change 412,543 $ 3,920,434 75,956 $ 679,134
============= ============= ============= =============
Year Ended April 30, 2004
- --------------------------------------
Sold 759,328 $ 8,765,026 125,231 $ 1,438,820
Dividends and distributions reinvested 8,435 102,742 1,040 12,300
Redeemed (264,570) (3,014,785) (13,264) (146,498)
------------- ------------- ------------- -------------
Net change 503,193 $ 5,852,983 113,007 $ 1,304,622
============= ============= ============= =============
The AAL Small Cap Value Fund
----------------------------------------------------------------------------------------
Class A Class B Institutional Class
---------------------------- ---------------------------- ----------------------------
Year Ended April 30, 2003 Shares Amount Shares Amount Shares Amount
- --------------------------------------- ------------- ------------- ------------- ------------- ------------- -------------
Sold 1,707,983 $ 16,485,676 143,733 $ 1,344,321 113,249 $ 1,004,332
Dividends and distributions reinvested 15,616 168,804 1,507 16,199 1,983 21,570
Redeemed (667,504) (5,973,043) (26,573) (236,673) (10,034) (89,991)
------------- ------------- ------------- ------------- ------------- -------------
Net change 1,056,095 $ 10,681,437 118,667 $ 1,123,847 105,198 $ 935,911
============= ============= ============= ============= ============= =============
Year Ended April 30, 2004
- --------------------------------------
Sold 1,231,692 $ 15,453,286 133,641 $ 1,636,852 401,305 $ 4,993,888
Redeemed (472,176) (5,830,858) (22,832) (280,334) (62,832) (748,439)
------------- ------------- ------------- ------------- ------------- -------------
Net change 759,516 $ 9,622,428 110,809 $ 1,356,518 338,473 $ 4,245,449
============= ============= ============= ============= ============= =============
The AAL Mid Cap Stock Fund
----------------------------------------------------------------------------------------
Class A Class B Institutional Class
---------------------------- ---------------------------- ----------------------------
Year Ended April 30, 2003 Shares Amount Shares Amount Shares Amount
- --------------------------------------- ------------- ------------- ------------- ------------- ------------- -------------
Sold 5,622,797 $ 61,355,828 436,184 $ 4,433,244 428,076 $ 4,775,897
Redeemed (9,968,058) (104,853,157) (856,791) (8,546,850) (417,793) (4,575,270)
------------- ------------- ------------- ------------- ------------- -------------
Net change (4,345,261) $ (43,497,329) (420,607) $ (4,113,606) 10,283 $ 200,627
============= ============= ============= ============= ============= =============
Year Ended April 30, 2004
- ---------------------------------------
Sold 4,574,691 $ 60,126,709 427,350 $ 5,204,771 375,149 $ 5,057,016
Redeemed (7,956,658) (103,176,578) (620,611) (7,370,345) (280,523) (3,823,823)
------------- ------------- ------------- ------------- ------------- -------------
Net change (3,381,967) $ (43,049,869) (193,261) $ (2,165,574) 94,626 $ 1,233,193
============= ============= ============= ============= ============= =============
The AAL Mid Cap
Index Fund The AAL Mid Cap Index Fund II
----------------------------- -----------------------------------------------------------
Institutional Class Class A Class B
---------------------------- ---------------------------- ----------------------------
Year Ended April 30, 2003 Shares Amount Shares Amount Shares Amount
- --------------------------------------- ------------- ------------- ------------- ------------- ------------- -------------
Sold 453,532 $ 4,084,475 1,072,267 $ 9,537,229 114,965 $ 977,283
Dividends and distributions reinvested 79,150 704,768 35,578 299,925 3,443 28,333
Redeemed (371,137) (3,273,942) (478,709) (4,034,206) (21,403) (177,847)
------------- ------------- ------------- ------------- ------------- -------------
Net change 161,545 $ 1,515,301 629,136 $ 5,802,948 97,005 $ 827,769
============= ============= ============= ============= ============= =============
Year Ended April 30, 2004
- --------------------------------------
Sold 786,601 $ 8,854,724 1,077,267 $ 11,716,850 163,505 $ 1,744,648
Dividends and distributions reinvested 25,553 298,459 -- -- -- --
Redeemed (449,628) (5,201,164) (1,079,523) (10,697,111) (26,853) (282,042)
------------- ------------- ------------- ------------- ------------- -------------
Net change 362,526 $ 3,952,019 (2,256) $ 1,019,739 136,652 $ 1,462,606
============= ============= ============= ============= ============= =============
The AAL International Fund
----------------------------------------------------------------------------------------
Class A Class B Institutional Class
---------------------------- ---------------------------- ----------------------------
Year Ended April 30, 2003 Shares Amount Shares Amount Shares Amount
- --------------------------------------- ------------- ------------- ------------- ------------- ------------- -------------
Sold 5,083,299 $ 35,917,668 231,712 $ 1,617,935 88,790 $ 723,975
Dividends and distributions reinvested 85,334 574,295 -- -- 3,059 20,677
Redeemed (5,544,889) (37,965,359) (462,104) (3,206,174) (17,240) (121,855)
------------- ------------- ------------- ------------- ------------- -------------
Net change (376,256) $ (1,473,396) (230,392) $ (1,588,239) 74,609 $ 622,797
============= ============= ============= ============= ============= =============
Year Ended April 30, 2004
- ---------------------------------------
Sold 4,804,623 $ 38,879,613 235,145 $ 1,898,391 85,179 $ 706,854
Dividends and distributions reinvested 22,530 196,231 -- -- 1,798 15,790
Redeemed (5,339,553) (42,593,344) (247,229) (1,951,550) (126,779) (986,591)
------------- ------------- ------------- ------------- ------------- -------------
Net change (512,400) $ (3,517,500) (12,084) $ (53,159) (39,802) $ (263,947)
============= ============= ============= ============= ============= =============
The AAL Capital Growth Fund
----------------------------------------------------------------------------------------
Class A Class B Institutional Class
---------------------------- ---------------------------- ----------------------------
Year Ended April 30, 2003 Shares Amount Shares Amount Shares Amount
- --------------------------------------- ------------- ------------- ------------- ------------- ------------- -------------
Sold 7,453,661 $ 188,742,782 509,708 $ 12,339,095 976,708 $ 24,557,544
Dividends and distributions reinvested 318,131 8,009,547 -- -- 14,388 366,892
Redeemed (18,886,433) (464,941,823) (1,561,730) (37,394,305) (515,719) (12,916,711)
------------- ------------- ------------- ------------- ------------- -------------
Net change (11,114,641) $(268,189,494) (1,052,022) $ (25,055,210) 475,377 $ 12,007,725
============= ============= ============= ============= ============= =============
Year Ended April 30, 2004
- ---------------------------------------
Sold 6,751,343 $ 191,018,783 562,079 $ 15,122,456 633,557 $ 17,877,502
Dividends and distributions reinvested 359,246 10,051,966 -- -- 20,616 577,002
Redeemed (13,157,567) (370,317,835) (1,187,337) (31,754,804) (430,599) (12,332,453)
------------- ------------- ------------- ------------- ------------- -------------
Net change (6,046,978) $(169,247,086) (625,258) $ (16,632,348) 223,574 $ 6,122,051
============= ============= ============= ============= ============= =============
The AAL Large
Company Index Fund The AAL Large Company Index Fund II
----------------------------- -----------------------------------------------------------
Institutional Class Class A Class B
---------------------------- ---------------------------- ----------------------------
Year Ended April 30, 2003 Shares Amount Shares Amount Shares Amount
- --------------------------------------- ------------- ------------- ------------- ------------- ------------- -------------
Sold 3,307,437 $ 21,158,281 1,709,196 $ 10,690,308 211,984 $ 1,280,873
Dividends and distributions reinvested 46,003 277,400 20,081 120,685 -- --
Redeemed (2,051,928) (12,531,282) (1,440,451) (8,615,260) (20,768) (109,475)
------------- ------------- ------------- ------------- ------------- -------------
Net change 1,301,512 $ 8,904,399 288,826 $ 2,195,733 191,216 $ 1,171,398
============= ============= ============= ============= ============= =============
Year Ended April 30, 2004
- --------------------------------------
Sold 1,392,569 $ 9,982,529 2,957,536 $ 21,872,449 454,015 $ 3,314,531
Dividends and distributions reinvested 66,171 498,930 58,659 445,806 -- --
Redeemed (7,488,824) (49,652,493) (707,716) (5,182,368) (144,682) (980,418)
------------- ------------- ------------- ------------- ------------- -------------
Net change (6,030,084) $ (39,171,034) 2,308,479 $ 17,135,887 309,333 $ 2,334,113
============= ============= ============= ============= ============= =============
The AAL Equity Income Fund
----------------------------------------------------------------------------------------
Class A Class B Institutional Class
---------------------------- ---------------------------- ----------------------------
Year Ended April 30, 2003 Shares Amount Shares Amount Shares Amount
- --------------------------------------- ------------- ------------- ------------- ------------- ------------- -------------
Sold 2,191,772 $ 23,473,991 122,528 $ 1,294,137 761,883 $ 7,733,488
Dividends and distributions reinvested 237,928 2,453,812 502 4,977 7,530 79,091
Redeemed (4,816,090) (49,282,694) (289,670) (2,951,035) (515,332) (5,449,859)
------------- ------------- ------------- ------------- ------------- -------------
Net change (2,386,390) $ (23,354,891) (166,640) $ (1,651,921) 254,081 $ 2,362,720
============= ============= ============= ============= ============= =============
Year Ended April 30, 2004
- --------------------------------------
Sold 1,858,050 $ 22,077,046 129,426 $ 1,532,086 294,806 $ 3,542,115
Dividends and distributions reinvested 113,030 1,314,555 -- -- 9,105 105,704
Redeemed (3,275,937) (38,455,120) (327,603) (3,823,501) (177,745) (2,134,634)
------------- ------------- ------------- ------------- ------------- -------------
Net change (1,304,857) $ (15,063,519) (198,177) $ (2,291,415) 126,166 $ 1,513,185
============= ============= ============= ============= ============= =============
The AAL Balanced Fund
----------------------------------------------------------------------------------------
Class A Class B Institutional Class
---------------------------- ---------------------------- ----------------------------
Year Ended April 30, 2003 Shares Amount Shares Amount Shares Amount
- --------------------------------------- ------------- ------------- ------------- ------------- ------------- -------------
Sold 3,416,858 $ 36,196,164 307,223 $ 3,230,520 10,690,466 $ 114,145,026
Dividends and distributions reinvested 477,441 4,991,386 20,998 219,526 111,076 1,145,377
Redeemed (6,156,135) (64,447,749) (461,808) (4,789,207) (1,086,816) (11,220,338)
------------- ------------- ------------- ------------- ------------- -------------
Net change (2,261,836) $ (23,260,199) (133,587) $ (1,339,161) 9,714,726 $ 104,070,065
============= ============= ============= ============= ============= =============
Year Ended April 30, 2004
- --------------------------------------
Sold 3,776,828 $ 43,526,295 463,346 $ 5 ,319,971 514,280 $ 5,834,784
Dividends and distributions reinvested 395,804 4,525,726 12,555 142,480 214,186 2,445,230
Redeemed (4,583,294) (52,689,198) (677,332) (7,751,445) (1,219,918) (14,074,212)
------------- ------------- ------------- ------------- ------------- -------------
Net change (410,662) $ (4,637,177) (201,431) $ (2,288,994) (491,452) $ (5,794,198)
============= ============= ============= ============= ============= =============
The AAL High Yield Bond Fund
----------------------------------------------------------------------------------------
Class A Class B Institutional Class
---------------------------- ---------------------------- ----------------------------
Year Ended April 30, 2003 Shares Amount Shares Amount Shares Amount
- --------------------------------------- ------------- ------------- ------------- ------------- ------------- -------------
Sold 3,571,703 $ 20,664,401 121,452 $ 704,358 98,715 $ 585,893
Dividends and distributions reinvested 1,105,584 6,321,840 51,479 293,654 32,306 184,899
Redeemed (5,121,145) (29,402,824) (551,791) (3,145,287) (42,075) (241,368)
------------- ------------- ------------- ------------- ------------- -------------
Net change (443,858) $ (2,416,583) (378,860) $ (2,147,275) 88,946 $ 529,424
============= ============= ============= ============= ============= =============
Year Ended April 30, 2004
- ---------------------------------------
Sold 5,669,568 $ 37,096,535 367,922 $ 2,408,588 90,909 $ 601,573
Dividends and distributions reinvested 944,456 6,171,574 37,212 243,215 30,328 198,104
Redeemed (4,676,650) (30,579,003) (417,293) (2,720,137) (60,672) (399,956)
------------- ------------- ------------- ------------- ------------- -------------
Net change 1,937,374 $ 12,689,106 (12,159) $ (68,334) 60,565 $ 399,721
============= ============= ============= ============= ============= =============
The AAL Municipal Bond Fund
----------------------------------------------------------------------------------------
Class A Class B Institutional Class
---------------------------- ---------------------------- ----------------------------
Year Ended April 30, 2003 Shares Amount Shares Amount Shares Amount
- --------------------------------------- ------------- ------------- ------------- ------------- ------------- -------------
Sold 9,997,451 $ 114,243,001 328,130 $ 3,753,555 44,092 $ 498,114
Dividends and distributions reinvested 2,030,621 23,248,861 31,462 360,177 2,528 28,885
Redeemed (7,159,974) (81,931,508) (269,067) (3,082,836) (218,741) (2,488,733)
------------- ------------- ------------- ------------- ------------- -------------
Net change 4,868,098 $ 55,560,354 90,525 $ 1,030,896 (172,121) $ (1,961,734)
============= ============= ============= ============= ============= =============
Year Ended April 30, 2004
- --------------------------------------
Sold 5,883,415 $ 67,934,636 399,384 $ 4,628,778 73,037 $ 850,594
Dividends and distributions reinvested 1,956,868 22,518,943 31,232 359,267 3,215 36,906
Redeemed (10,006,025) (115,147,889) (335,823) (3,880,083) (125,642) (1,443,240)
------------- ------------- ------------- ------------- ------------- -------------
Net change (2,165,742) $ (24,694,310) 94,793 $ 1,107,962 (49,390) $ (555,740)
============= ============= ============= ============= ============= =============
The AAL Bond Fund
----------------------------------------------------------------------------------------
Class A Class B Institutional Class
---------------------------- ---------------------------- ----------------------------
Year Ended April 30, 2003 Shares Amount Shares Amount Shares Amount
- --------------------------------------- ------------- ------------- ------------- ------------- ------------- -------------
Sold 13,943,165 $ 139,480,773 694,640 $ 6,970,962 1,245,466 $ 12,470,799
Dividends and distributions reinvested 1,960,681 19,731,887 32,703 329,579 96,159 968,203
Redeemed (10,827,360) (109,048,807) (253,040) (2,550,859) (833,907) (8,360,303)
------------- ------------- ------------- ------------- ------------- -------------
Net change 5,076,486 $ 50,163,853 474,303 $ 4,749,682 507,718 $ 5,078,699
============= ============= ============= ============= ============= =============
Year Ended April 30, 2004
- --------------------------------------
Sold 5,653,487 $ 58,308,498 383,777 $ 3,959,757 1,378,445 $ 14,193,753
Dividends and distributions reinvested 1,812,181 18,654,274 39,732 409,278 113,584 1,169,915
Redeemed (13,119,716) (135,051,219) (380,664) (3,925,602) (925,273) (9,539,157)
------------- ------------- ------------- ------------- ------------- -------------
Net change (5,654,048) $ (58,088,447) 42,845 $ 443,433 566,756 $ 5,824,511
============= ============= ============= ============= ============= =============
The AAL Bond Index Fund
----------------------------
Institutional Class
----------------------------
Year Ended April 30, 2003 Shares Amount
- -------------------------------------- ------------- -------------
Sold 3,796,017 $ 40,643,025
Dividends and distributions reinvested 120,233 1,301,035
Redeemed (2,145,587) (23,225,442)
------------- -------------
Net change 1,770,663 $ 18,718,618
============= =============
Year Ended April 30, 2004
- -------------------------------------
Sold 288,268 $ 3,085,266
Dividends and distributions reinvested 343,233 3,576,837
Redeemed (3,999,283) (43,993,681)
------------- -------------
Net change (3,367,782) $ (37,331,578)
============= =============
The AAL Money Market Fund
----------------------------------------------------------------------------------------
Class A Class B Institutional Class
---------------------------- ---------------------------- ----------------------------
Year Ended April 30, 2003 Shares Amount Shares Amount Shares Amount
- --------------------------------------- ------------- ------------- ------------- ------------- ------------- -------------
Sold 383,009,911 $ 383,009,911 3,160,982 $ 3,160,982 774,040,495 $ 774,040,495
Dividends and distributions reinvested 3,321,618 3,321,618 12,249 12,249 1,015,369 1,015,369
Redeemed (436,462,816) (436,462,816) (3,143,731) (3,143,731) (801,421,347) (801,421,347)
------------- ------------- ------------- ------------- ------------- -------------
Net change (50,131,287) $ (50,131,287) 29,500 $ 29,500 (26,365,483) $ (26,365,483)
============= ============= ============= ============= ============= =============
Year Ended April 30, 2004
- --------------------------------------
Sold 269,520,767 $ 269,520,767 1,422,984 $ 1,422,984 480,119,771 $ 480,119,771
Dividends and distributions reinvested 956,917 956,917 1,462 1,462 538,327 538,327
Redeemed (357,898,855) (357,898,855) (2,453,006) (2,453,006) (457,461,310) (457,461,310)
------------- ------------- ------------- ------------- ------------- -------------
Net change (87,421,171) $ (87,421,171) (1,028,560) $ (1,028,560) 23,196,788 $ 23,196,788
============= ============= ============= ============= ============= =============
(9) LINE OF CREDIT
Effective May 1, 2003, The AAL Mutual Funds, along with the AAL Variable
Product Series Fund, Inc., The Lutheran Brotherhood Family of Funds, and the
LB Series Fund, Inc., entered into an unsecured $75 million bank line of
credit agreement with State Street Bank and Trust Company. Borrowings under
the agreement would bear interest at the Federal Funds rate plus 0.50%. The
Funds were allowed to borrow money for temporary or emergency purposes to
fund shareholder redemptions. The Funds did not borrow against the line
during the year ended April 30, 2004. The line of credit was allowed to
expire on April 29, 2004.
(10) PROXY VOTING (unaudited)
The policies and procedures that the Trust uses to determine how to vote
proxies relating to portfolio securities are attached to the Trust's
Statement of Additional Information. You may request a free copy of the
Statement of Additional Information by calling 800-947-4836. You may also
review the Statement of Additional Information at the Thrivent Financial web
site (www.thrivent.com) or the SEC web site (www.sec.gov).
This page is intentionally left blank.
The AAL Mutual Funds
Financial Highlights
The AAL Technology Stock Fund
Class A Shares
- --------------------------------------------------------------------------------------------------------------------------------
Year Year Year Period
Ended Ended Ended Ended
For a share outstanding throughout each period (a) 4/30/2004 4/30/2003 4/30/2002 4/30/2001 (e)
- --------------------------------------------------------------------------------------------------------------------------------
---------- ---------- ---------- ----------
Net Asset Value, Beginning of Period $2.50 $3.15 $5.13 $10.00
---------- ---------- ---------- ----------
Income from Investment Operations
Net investment loss (0.03) (0.05) (0.06) (0.05)
Net realized and unrealized gain/(loss)
on investments (b) 0.73 (0.60) (1.92) (4.82)
---------- ---------- ---------- ----------
Total from Investment Operations 0.70 (0.65) (1.98) (4.87)
---------- ---------- ---------- ----------
Net Asset Value, End of period $3.20 $2.50 $3.15 $5.13
---------- ---------- ---------- ----------
Total return (c) 28.00% (20.63)% (38.60)% (48.70)%
Net assets, end of period (in millions) $41.5 $29.3 $31.4 $27.8
Ratio of expenses to average net assets (d) 1.36% 2.39% 2.29% 2.40%
Ratio of net investment loss to average net assets (d) (1.02)% (2.09)% (2.05)% (1.70)%
Portfolio turnover rate 67% 67% 57% 44%
If the Adviser had not reimbursed expenses and the Fund
had not received credits for directed brokerage
transactions or fees paid indirectly the ratios would
have been:
Ratio of expenses to average net assets (d) 2.19% 2.75% 2.33% 2.40%
Ratio of net investment loss to average net assets (d) (1.85)% (2.45)% (2.09)% (1.71)%
The AAL Mutual Funds The AAL Technology Stock Fund
Financial Highlights - continued Class B Shares
- --------------------------------------------------------------------------------------------------------------------------------
Year Year Year Period
Ended Ended Ended Ended
For a share outstanding throughout each period (a) 4/30/2004 4/30/2003 4/30/2002 4/30/2001 (e)
- --------------------------------------------------------------------------------------------------------------------------------
---------- ---------- ---------- ----------
Net Asset Value, Beginning of Period $2.43 $3.09 $5.10 $10.00
---------- ---------- ---------- ----------
Income from Investment Operations
Net investment loss (0.04) (0.06) (0.09) (0.09)
Net realized and unrealized gain/(loss) on investments (b) 0.70 (0.60) (1.92) (4.81)
---------- ---------- ---------- ----------
Total from Investment Operations 0.66 (0.66) (2.01) (4.90)
---------- ---------- ---------- ----------
Net Asset Value, End of period $3.09 $2.43 $3.09 $5.10
---------- ---------- ---------- ----------
Total return (c) 27.16% (21.36)% 39.41)% (49.00)%
Net assets, end of period (in millions) $3.9 $2.6 $2.6 $2.6
Ratio of expenses to average net assets (d) 1.85% 3.50% 3.25% 3.40%
Ratio of net investment loss to average net assets (d) (1.51)% (3.20)% (3.01)% (2.68)%
Portfolio turnover rate 67% 67% 57% 44%
If the Adviser had not reimbursed expenses and the Fund
had not received credits for directed brokerage
transactions or fees paid indirectly the ratios would
have been:
Ratio of expenses to average net assets (d) 3.36% 4.12% 3.29% 3.41%
Ratio of net investment loss to average net assets (d) (3.02)% (3.82)% (3.05)% (2.69)%
The AAL Technology Stock Fund
Institutional Class Shares
- --------------------------------------------------------------------------------------------------------------------------------
Year Year Year Period
Ended Ended Ended Ended
For a share outstanding throughout each period (a) 4/30/2004 4/30/2003 4/30/2002 4/30/2001 (e)
- --------------------------------------------------------------------------------------------------------------------------------
---------- ---------- ---------- ----------
Net Asset Value, Beginning of Period $2.59 $3.22 $5.19 $10.00
---------- ---------- ---------- ----------
Income from Investment Operations
Net investment loss (0.02) (0.02) (0.03) (0.02)
Net realized and unrealized gain/(loss) on investments (b) 0.75 (0.61) (1.94) (4.79)
---------- ---------- ---------- ----------
Total from Investment Operations 0.73 (0.63) (1.97) (4.81)
---------- ---------- ---------- ----------
Net Asset Value, End of period $3.32 $2.59 $3.22 $5.19
---------- ---------- ---------- ----------
Total return (c) 28.19% (19.57)% (37.96)% 48.10%
Net assets, end of period (in millions) $2.9 $2.2 $7.9 $9.3
Ratio of expenses to average net assets (d) 1.00% 1.06% 1.10% 1.32%
Ratio of net investment loss to average net assets (d) (0.66)% (0.76)% (0.86)% (0.59)%
Portfolio turnover rate 67% 67% 57% 44%
If the Adviser had not reimbursed expenses and the Fund
had not received credits for directed brokerage
transactions or fees paid indirectly the ratios would
have been:
Ratio of expenses to average net assets (d) 1.02% 1.08% 1.14% 1.33%
Ratio of net investment loss to average net assets (d) (0.68)% (0.78)% (0.90)% (0.60)%
The AAL Aggressive Growth Fund
Class A Shares
- --------------------------------------------------------------------------------------------------------------------------------
Year Year Year Period
Ended Ended Ended Ended
For a share outstanding throughout each period (a) 4/30/2004 4/30/2003 4/30/2002 4/30/2001 (e)
- --------------------------------------------------------------------------------------------------------------------------------
---------- ---------- ---------- ----------
Net Asset Value, Beginning of Period $3.75 $4.53 $6.70 $10.00
---------- ---------- ---------- ----------
Income from Investment Operations
Net investment income/(loss) (0.06) (0.06) (0.06) (0.02)
Net realized and unrealized gain/(loss) on investments (b) 0.74 (0.72) (2.11) (3.28)
---------- ---------- ---------- ----------
Total from Investment Operations 0.68 (0.78) (2.17) (3.30)
---------- ---------- ---------- ----------
Net Asset Value, End of period $4.43 $3.75 $4.53 $6.70
---------- ---------- ---------- ----------
Total return (c) 18.13% (17.22)% (32.39)% (33.00)%
Net assets, end of period (in millions) $38.6 $30.2 $34.9 $35.3
Ratio of expenses to average net assets (d) 2.34% 2.64% 2.21% 2.12%
Ratio of net investment income/(loss) to average net assets (d) (1.45)% (1.72)% (1.34)% (0.51)%
Portfolio turnover rate 107% 204% 94% 70%
If the Adviser had not reimbursed expenses and the Fund
had not received credits for directed brokerage
transactions or fees paid indirectly the ratios would
have been:
Ratio of expenses to average net assets (d) 2.35% 2.65% 2.21% 2.12%
Ratio of net investment income/(loss) to average net assets (d) (1.46)% (1.73)% (1.34)% (0.51)%
The AAL Aggressive Growth Fund
Class B Shares
- --------------------------------------------------------------------------------------------------------------------------------
Year Year Year Period
Ended Ended Ended Ended
For a share outstanding throughout each period (a) 4/30/2004 4/30/2003 4/30/2002 4/30/2001 (e)
- --------------------------------------------------------------------------------------------------------------------------------
---------- ---------- ---------- ----------
Net Asset Value, Beginning of Period $3.63 $4.44 $6.65 $10.00
---------- ---------- ---------- ----------
Income from Investment Operations
Net investment income/(loss) (0.09) (0.09) (0.10) (0.06)
Net realized and unrealized gain/(loss) on investments (b) 0.71 (0.72) (2.11) (3.29)
---------- ---------- ---------- ----------
Total from Investment Operations 0.62 (0.81) (2.21) (3.35)
---------- ---------- ---------- ----------
Net Asset Value, End of period $4.25 $3.63 $4.44 $6.65
---------- ---------- ---------- ----------
Total return (c) 17.08% (18.24)% (33.23)% (33.50)%
Net assets, end of period (in millions) $4.0 $3.3 $3.4 $3.0
Ratio of expenses to average net assets (d) 3.28% 3.73% 3.33% 3.32%
Ratio of net investment income/(loss) to average net assets (d) (2.40)% (2.81)% (2.46)% (1.62)%
Portfolio turnover rate 107% 204% 94% 70%
If the Adviser had not reimbursed expenses and the Fund
had not received credits for directed brokerage
transactions or fees paid indirectly the ratios would
have been:
Ratio of expenses to average net assets (d) 3.44% 3.74% 3.33% 3.32%
Ratio of net investment income/(loss) to average net assets (d) (2.56)% (2.82)% (2.46)% (1.62)%
The AAL Aggressive Growth Fund
Institutional Class Shares
- --------------------------------------------------------------------------------------------------------------------------------
Year Year Year Period
Ended Ended Ended Ended
For a share outstanding throughout each period (a) 4/30/2004 4/30/2003 4/30/2002 4/30/2001 (e)
- --------------------------------------------------------------------------------------------------------------------------------
---------- ---------- ---------- ----------
Net Asset Value, Beginning of Period $3.88 $4.62 $6.77 $10.00
---------- ---------- ---------- ----------
Income from Investment Operations
Net investment income/(loss) (0.01) 0.02 (0.01) 0.03
Net realized and unrealized gain/(loss) on investments (b) 0.77 (0.76) (2.14) (3.26)
---------- ---------- ---------- ----------
Total from Investment Operations 0.76 (0.74) (2.15) (3.23)
---------- ---------- ---------- ----------
Net Asset Value, End of period $4.64 $3.88 $4.62 $6.77
---------- ---------- ---------- ----------
Total return (c) 19.59% (16.02)% (31.76)% (32.30)%
Net assets, end of period (in millions) $3.4 $2.8 $6.7 $8.2
Ratio of expenses to average net assets (d) 1.11% 1.10% 1.15% 1.17%
Ratio of net investment income/(loss) to average net assets (d) (0.22)% (0.18)% (0.28)% 0.60%
Portfolio turnover rate 107% 204% 94% 70%
If the Adviser had not reimbursed expenses and the Fund
had not received credits for directed brokerage
transactions or fees paid indirectly the ratios would
have been:
Ratio of expenses to average net assets (d) 1.12% 1.11% 1.15% 1.17%
Ratio of net investment income/(loss) to average net assets (d) (0.23)% (0.19)% (0.28)% 0.60%
(a) All per share amounts have been rounded to the nearest cent.
(b) The amount shown may not correlate with the change in aggregate
gains and losses of portfolio securities due to the timing of sales
and redemptions of fund shares.
(c) Total investment return assumes dividend reinvestment and does not
reflect any deduction for sales charges. Not annualized for periods
less than one year.
(d) Computed on an annualized basis for periods less than one year.
(e) Since Fund inception, July 1, 2000.
The accompanying notes to the financial statements are an integral part of this schedule.
The AAL Small Mutual Funds The AAL Small Cap Stock Fund
Financial Highlights - continued Class A Shares
- -------------------------------------------------------------------------------------------------------------------------
Year Year Year Year Year
Ended Ended Ended Ended Ended
For a share outstanding throughout each period (a) 4/30/2004 4/30/2003 4/30/2002 4/30/2001 4/30/2000
- -------------------------------------------------------------------------------------------------------------------------
---------- ---------- ---------- ---------- ----------
Net Asset Value, Beginning of Period $11.55 $14.82 $13.39 $14.60 $10.89
---------- ---------- ---------- ---------- ----------
Income from Investment Operations
Net investment income/(loss) (0.11) (0.09) (0.09) (0.06) (0.08)
Net realized and unrealized gain/(loss)
on investments (b) 4.95 (3.18) 1.60 1.05 3.79
---------- ---------- ---------- ---------- ----------
Total from Investment Operations 4.84 (3.27) 1.51 0.99 3.71
---------- ---------- ---------- ---------- ----------
Less Distributions from
---------- ---------- ---------- ---------- ----------
Net Realized Gain on Investments -- -- (0.08) (2.20) --
---------- ---------- ---------- ---------- ----------
Net Asset Value, End of period $16.39 $11.55 $14.82 $13.39 $14.60
---------- ---------- ---------- ---------- ----------
Total return (c) 41.90% (22.06)% 11.29% 7.77% 34.07%
Net assets, end of period (in millions) $379.5 $266.7 $344.3 $258.6 $191.3
Ratio of expenses to average net assets (d) 1.38% 1.47% 1.36% 1.40% 1.53%
Ratio of net investment income/(loss) to
average net assets (0.71)% (0.78)% (0.69)% (0.54)% (0.72)%
Portfolio turnover rate 106% 97% 59% 123% 147%
If the Adviser had not reimbursed expenses and the Fund
had not received credits for directed brokerage
transactions or fees paid indirectly the ratios would
have been:
Ratio of expenses to average net assets 1.40% 1.49% 1.37% 1.41% 1.65%
Ratio of net investment income/(loss)
to average net assets (0.73)% (0.80)% (0.70)% (0.54)% (0.85)%
The AAL Small Cap Stock Fund
Class B Shares
- -------------------------------------------------------------------------------------------------------------------------
Year Year Year Year Year
Ended Ended Ended Ended Ended
For a share outstanding throughout each period (a) 4/30/2004 4/30/2003 4/30/2002 4/30/2001 4/30/2000
- -------------------------------------------------------------------------------------------------------------------------
---------- ---------- ---------- ---------- ----------
Net Asset Value, Beginning of Period $10.86 $14.08 $12.86 $14.24 $10.74
---------- ---------- ---------- ---------- ----------
Income from Investment Operations
Net investment income/(loss) (0.26) (0.26) (0.24) (0.18) (0.19)
Net realized and unrealized gain/(loss)
on investments (b) 4.66 (2.96) 1.54 1.00 3.69
---------- ---------- ---------- ---------- ----------
Total from Investment Operations 4.40 (3.22) 1.30 0.82 3.50
---------- ---------- ---------- ---------- ----------
Less Distributions from
---------- ---------- ---------- ---------- ----------
Net Realized Gain on Investments -- -- (0.08) (2.20) --
---------- ---------- ---------- ---------- ----------
Net Asset Value, End of period $15.26 $10.86 $14.08 $12.86 $14.24
---------- ---------- ---------- ---------- ----------
Total return (c) 40.52% (22.87)% 10.11% 6.72% 32.71%
Net assets, end of period (in millions) $25.3 $21.1 $33.8 $31.2 $24.6
Ratio of expenses to average net assets (d) 2.42% 2.45% 2.39% 2.39% 2.56%
Ratio of net investment income/(loss)
to average net assets (1.75)% (1.75)% (1.72)% (1.52)% (1.76)%
Portfolio turnover rate 106% 97% 59% 123% 147%
If the Adviser had not reimbursed expenses and the Fund
had not received credits for directed brokerage
transactions or fees paid indirectly the ratios would
have been:
Ratio of expenses to average net assets 2.44% 2.47% 2.41% 2.40% 2.68%
Ratio of net investment income/(loss)
to average net assets (1.77)% (1.77)% (1.74)% (1.53)% (1.88)%
The AAL Small Cap Stock Fund
Institutional Class Shares
- --------------------------------------------------------------------------------------------------------------------------
Year Year Year Year Year
Ended Ended Ended Ended Ended
For a share outstanding throughout each period (a) 4/30/2004 4/30/2003 4/30/2002 4/30/2001 4/30/2000
- -------------------------------------------------------------------------------------------------------------------------
---------- ---------- ---------- ---------- ----------
Net Asset Value, Beginning of Period $11.98 $15.26 $13.71 $14.80 $10.95
---------- ---------- ---------- ---------- ----------
Income from Investment Operations
Net investment income/(loss) (0.01) (0.06) (0.01) 0.01 0.01
Net realized and unrealized gain/(loss)
on investments (b) 5.15 (3.22) 1.64 1.10 3.84
---------- ---------- ---------- ---------- ----------
Total from Investment Operations 5.14 (3.28) 1.63 1.11 3.85
---------- ---------- ---------- ---------- ----------
Less Distributions from
---------- ---------- ---------- ---------- ----------
Net Realized Gain on Investments -- -- (0.08) (2.20) --
---------- ---------- ---------- ---------- ----------
Net Asset Value, End of period $17.12 $11.98 $15.26 $13.71 $14.80
---------- ---------- ---------- ---------- ----------
Total return (c) 42.90% (21.49)% 11.90% 8.53% 35.16%
Net assets, end of period (in millions) $11.0 $6.8 $5.3 $3.8 $1.0
Ratio of expenses to average net assets (d) 0.73% 0.73% 0.74% 0.78% 0.72%
Ratio of net investment income/(loss)
to average net assets (0.06)% (0.03)% (0.07)% 0.11% 0.08%
Portfolio turnover rate 106% 97% 59% 123% 147%
If the Adviser had not reimbursed expenses and the Fund
had not received credits for directed brokerage
transactions or fees paid indirectly the ratios would
have been:
Ratio of expenses to average net assets 0.75% 0.75% 0.75% 0.78% 0.84%
Ratio of net investment income/(loss)
to average net assets (0.08)% (0.05)% (0.08)% 0.10% (0.04)%
The AAL Small Cap Index Fund II
Class A Shares
- --------------------------------------------------------------------------------------------------------------------------------
Year Year Year Period
Ended Ended Ended Ended
For a share outstanding throughout each period (a) 4/30/2004 4/30/2003 4/30/2002 4/30/2001 (e)
- --------------------------------------------------------------------------------------------------------------------------------
---------- ---------- ---------- ----------
Net Asset Value, Beginning of Period $8.89 $11.42 $10.03 $10.00
---------- ---------- ---------- ----------
Income from Investment Operations
Net investment loss (0.01) (0.04) (0.07) (0.07)
Net realized and unrealized gain/(loss)
on investments (b) 3.42 (2.43) 1.52 0.21
---------- ---------- ---------- ----------
Total from Investment Operations 3.41 (2.47) 1.45 0.14
---------- ---------- ---------- ----------
Less Distributions from
---------- ---------- ---------- ----------
Net Realized Gain on Investments (0.04) (0.06) (0.06) (0.11)
---------- ---------- ---------- ----------
Net Asset Value, End of period $12.26 $8.89 $11.42 $10.03
---------- ---------- ---------- ----------
Total return (c) 38.37% (21.69)% 14.53% 1.43%
Net assets, end of period (in millions) $34.4 $20.5 $21.6 $13.3
Ratio of expenses to average net assets (d) 1.04% 1.35% 1.51% 1.86%
Ratio of net investment loss to average net assets (d) (0.13)% (0.44)% (0.77)% (1.03)%
Portfolio turnover rate 18% 18% 18% 36%
If the Adviser had not reimbursed expenses and the Fund
had not received credits for directed brokerage
transactions or fees paid indirectly the ratios would
have been:
Ratio of expenses to average net assets (d) 1.25% 1.40% 1.51% 1.86%
Ratio of net investment loss to average net assets (d) (0.34)% (0.49)% (0.77)% (1.03)%
The AAL Small Cap Index Fund II
Class B Shares
- --------------------------------------------------------------------------------------------------------------------------------
Year Year Year Period
Ended Ended Ended Ended
For a share outstanding throughout each period (a) 4/30/2004 4/30/2003 4/30/2002 4/30/2001 (e)
- --------------------------------------------------------------------------------------------------------------------------------
---------- ---------- ---------- ----------
Net Asset Value, Beginning of Period $8.69 $11.26 $9.97 $10.00
---------- ---------- ---------- ----------
Income from Investment Operations
Net investment loss (0.09) (0.08) (0.14) (0.13)
Net realized and unrealized gain/(loss)
on investments (b) 3.31 (2.43) 1.49 0.21
---------- ---------- ---------- ----------
Total from Investment Operations 3.22 (2.51) 1.35 0.08
---------- ---------- ---------- ----------
Less Distributions from
---------- ---------- ---------- ----------
Net Realized Gain on Investments (0.04) (0.06) (0.06) (0.11)
---------- ---------- ---------- ----------
Net Asset Value, End of period $11.87 $8.69 $11.26 $9.97
---------- ---------- ---------- ----------
Total return (c) 37.06% (22.29)% 13.62% 0.73%
Net assets, end of period (in millions) $4.4 $2.3 $2.1 $1.5
Ratio of expenses to average net assets (d) 1.97% 2.25% 2.27% 2.67%
Ratio of net investment loss to average net assets (d) (1.06)% (1.34)% (1.53)% (1.84)%
Portfolio turnover rate 18% 18% 18% 36%
If the Adviser had not reimbursed expenses and the Fund
had not received credits for directed brokerage
transactions or fees paid indirectly the ratios would
have been:
Ratio of expenses to average net assets (d) 2.19% 2.32% 2.27% 2.67%
Ratio of net investment loss to average net assets (d) (1.28)% (1.41)% (1.53)% (1.84)%
(a) All per share amounts have been rounded to the nearest cent.
(b) The amount shown may not correlate with the change in aggregate
gains and losses of portfolio securities due to the timing of sales
and redemptions of fund shares.
(c) Total investment return assumes dividend reinvestment and does not
reflect any deduction for sales charges. Not annualized for periods
less than one year.
(d) Computed on an annualized basis for periods less than one year.
(e) Since Fund inception, July 1, 2000.
The accompanying notes to the financial statements are an integral part of this schedule.
The AAL Mutual Funds
Financial Highlights - continued
The AAL Small Cap Value Fund
Class A Shares
- --------------------------------------------------------------------------------------------------------------------------------
Year Year Period
Ended Ended Ended
For a share outstanding throughout each period (a) 4/30/2004 4/30/2003 4/30/2002 (e)
- --------------------------------------------------------------------------------------------------------------------------------
---------- ---------- ----------
Net Asset Value, Beginning of Period $9.33 $11.65 $10.00
---------- ---------- ----------
Income from Investment Operations
Net investment income/(loss) (0.05) (0.07) (0.05)
Net realized and unrealized gain/(loss) on investments (b) 4.30 (2.18) 1.70
---------- ---------- ----------
Total from Investment Operations 4.25 (2.25) 1.65
---------- ---------- ----------
Less Distributions from
---------- ---------- ----------
Net Realized Gain on Investments -- (0.07) --
---------- ---------- ----------
Net Asset Value, End of period $13.58 $9.33 $11.65
---------- ---------- ----------
Total return (c) 45.55% (19.38)% 16.50%
Net assets, end of period (in millions) $50.6 $27.7 $22.3
Ratio of expenses to average net assets (d) 1.32% 1.86% 2.12%
Ratio of net investment income/(loss) to average net assets (d) (0.46)% (0.88)% (1.19)%
Portfolio turnover rate 80% 147% 50%
If the Adviser had not reimbursed expenses and the Fund
had not received credits for directed brokerage
transactions or fees paid indirectly the ratios would
have been:
Ratio of expenses to average net assets (d) 1.84% 2.05% 2.16%
Ratio of net investment loss to average net assets (d) (0.98)% (1.07)% (1.23)%
The AAL Small Cap Value Fund
Class B Shares
- --------------------------------------------------------------------------------------------------------------------------------
Year Year Period
Ended Ended Ended
For a share outstanding throughout each period (a) 4/30/2004 4/30/2003 4/30/2002 (e)
- --------------------------------------------------------------------------------------------------------------------------------
---------- ---------- ----------
Net Asset Value, Beginning of Period $9.21 $11.59 $10.00
---------- ---------- ----------
Income from Investment Operations
Net investment income/(loss) (0.14) (0.12) (0.11)
Net realized and unrealized gain/(loss) on investments (b) 4.22 (2.19) 1.70
---------- ---------- ----------
Total from Investment Operations 4.08 (2.31) 1.59
---------- ---------- ----------
Less Distributions from
---------- ---------- ----------
Net Realized Gain on Investments -- (0.07) --
---------- ---------- ----------
Net Asset Value, End of period $13.29 $9.21 $11.59
---------- ---------- ----------
Total return (c) 44.30% (20.00)% 15.90%
Net assets, end of period (in millions) $5.7 $2.9 $2.3
Ratio of expenses to average net assets (d) 2.20% 2.71% 2.86%
Ratio of net investment income/(loss) to average net assets (d) (1.33)% (1.73)% (1.93)%
Portfolio turnover rate 80% 147% 50%
If the Adviser had not reimbursed expenses and the Fund
had not received credits for directed brokerage
transactions or fees paid indirectly the ratios would
have been:
Ratio of expenses to average net assets (d) 2.73% 2.91% 2.90%
Ratio of net investment loss to average net assets (d) (1.86)% (1.93)% (1.97)%
The AAL Small Cap Value Fund
Institutional Class Shares
- --------------------------------------------------------------------------------------------------------------------------------
Year Year Period
Ended Ended Ended
For a share outstanding throughout each period (a) 4/30/2004 4/30/2003 4/30/2002 (e)
- --------------------------------------------------------------------------------------------------------------------------------
---------- ---------- ----------
Net Asset Value, Beginning of Period $9.47 $11.71 $10.00
---------- ---------- ----------
Income from Investment Operations
Net investment income/(loss) 0.03 -- (0.05)
Net realized and unrealized gain/(loss) on investments (b) 4.40 (2.17) 1.76
---------- ---------- ----------
Total from Investment Operations 4.43 (2.17) 1.71
---------- ---------- ----------
Less Distributions from
---------- ---------- ----------
Net Realized Gain on Investments -- (0.07) --
---------- ---------- ----------
Net Asset Value, End of period $13.90 $9.47 $11.71
---------- ---------- ----------
Total return (c) 46.78% (18.59)% 17.10%
Net assets, end of period (in millions) $10.3 $3.8 $3.5
Ratio of expenses to average net assets (d) 0.52% 0.87% 1.59%
Ratio of net investment income/(loss) to average net assets (d) 0.34% 0.10% (0.66)%
Portfolio turnover rate 80% 147% 50%
If the Adviser had not reimbursed expenses and the Fund
had not received credits for directed brokerage
transactions or fees paid indirectly the ratios would
have been:
Ratio of expenses to average net assets (d) 1.04% 1.07% 1.63%
Ratio of net investment loss to average net assets (d) (0.18)% (0.10)% (0.70)%
The AAL Mid Cap Stock Fund
Class A Shares
- --------------------------------------------------------------------------------------------------------------------------
Year Year Year Year Year
Ended Ended Ended Ended Ended
For a share outstanding throughout each period (a) 4/30/2004 4/30/2003 4/30/2002 4/30/2001 4/30/2000
- -------------------------------------------------------------------------------------------------------------------------
---------- ---------- ---------- ---------- ----------
Net Asset Value, Beginning of Period $10.74 $13.01 $14.73 $16.73 $13.89
---------- ---------- ---------- ---------- ----------
Income from Investment Operations
Net investment income/(loss) (0.05) (0.02) (0.03) -- --
Net realized and unrealized gain/(loss)
on investments (b) 3.27 (2.25) (1.31) 1.19 3.67
---------- ---------- ---------- ---------- ----------
Total from Investment Operations 3.22 (2.27) (1.34) 1.19 3.67
---------- ---------- ---------- ---------- ----------
Less Distributions from
---------- ---------- ---------- ---------- ----------
Net realized gain on investments -- -- (0.38) (3.19) (0.83)
---------- ---------- ---------- ---------- ----------
Net Asset Value, End of period $13.96 $10.74 $13.01 $14.73 $16.73
---------- ---------- ---------- ---------- ----------
Total return (c) 29.98% (17.45)% (9.36)% 7.26% 27.29%
Net assets, end of period (in millions) $789.9 $643.8 $836.5 $883.2 $759.0
Ratio of expenses to average net assets 1.26% 1.30% 1.22% 1.16% 1.14%
Ratio of net investment income/(loss)
to average net assets (0.36)% (0.18)% (0.25)% 0.02% (0.02)%
Portfolio turnover rate 123% 48% 97% 144% 142%
If the Adviser had not reimbursed expenses and the Fund
had not received credits for directed brokerage
transactions or fees paid indirectly the ratios would
have been:
Ratio of expenses to average net assets 1.27% 1.31% 1.23% 1.17% 1.24%
Ratio of net investment income/(loss)
to average net assets (0.37)% (0.19)% (0.26)% 0.01% (0.12)%
The AAL Mid Cap Stock Fund
Class B Shares
- --------------------------------------------------------------------------------------------------------------------------
Year Year Year Year Year
Ended Ended Ended Ended Ended
For a share outstanding throughout each period (a) 4/30/2004 4/30/2003 4/30/2002 4/30/2001 4/30/2000
- -------------------------------------------------------------------------------------------------------------------------
---------- ---------- ---------- ---------- ----------
Net Asset Value, Beginning of Period $9.95 $12.20 $14.00 $16.20 $13.64
---------- ---------- ---------- ---------- ----------
Income from Investment Operations
Net investment income/(loss) (0.19) (0.18) (0.17) (0.12) (0.17)
Net realized and unrealized gain/(loss)
on investments (b) 3.02 (2.07) (1.25) 1.11 3.56
---------- ---------- ---------- ---------- ----------
Total from Investment Operations 2.83 (2.25) (1.42) 0.99 3.39
---------- ---------- ---------- ---------- ----------
Less Distributions from
---------- ---------- ---------- ---------- ----------
Net realized gain on investments -- -- (0.38) (3.19) (0.83)
---------- ---------- ---------- ---------- ----------
Net Asset Value, End of period $12.78 $9.95 $12.20 $14.00 $16.20
---------- ---------- ---------- ---------- ----------
Total return (c) 28.44% (18.44)% (10.44)% 6.18% 25.71%
Net assets, end of period (in millions) $26.8 $22.8 $33.1 $36.4 $26.9
Ratio of expenses to average net assets 2.44% 2.50% 2.38% 2.19% 2.46%
Ratio of net investment income/(loss)
to average net assets (1.55)% (1.38)% (1.41)% (1.01)% (1.33)%
Portfolio turnover rate 123% 48% 97% 144% 142%
If the Adviser had not reimbursed expenses and the Fund
had not received credits for directed brokerage
transactions or fees paid indirectly the ratios would
have been:
Ratio of expenses to average net assets 2.45% 2.51% 2.39% 2.20% 2.55%
Ratio of net investment income/(loss)
to average net assets (1.56)% (1.39)% (1.42)% (1.01)% (1.43)%
The AAL Mid Cap Stock Fund
Institutional Class Shares
- --------------------------------------------------------------------------------------------------------------------------
Year Year Year Year Year
Ended Ended Ended Ended Ended
For a share outstanding throughout each period (a) 4/30/2004 4/30/2003 4/30/2002 4/30/2001 4/30/2000
- -------------------------------------------------------------------------------------------------------------------------
---------- ---------- ---------- ---------- ----------
Net Asset Value, Beginning of Period $11.06 $13.31 $14.98 $16.89 $13.94
---------- ---------- ---------- ---------- ----------
Income from Investment Operations
Net investment income/(loss) 0.03 0.05 0.03 0.07 0.05
Net realized and unrealized gain/(loss)
on investments (b) 3.37 (2.30) (1.32) 1.21 3.73
---------- ---------- ---------- ---------- ----------
Total from Investment Operations 3.40 (2.25) (1.29) 1.28 3.78
---------- ---------- ---------- ---------- ----------
Less Distributions from
---------- ---------- ---------- ---------- ----------
Net realized gain on investments -- -- (0.38) (3.19) (0.83)
---------- ---------- ---------- ---------- ----------
Net Asset Value, End of period $14.46 $11.06 $13.31 $14.98 $16.89
---------- ---------- ---------- ---------- ----------
Total return (c) 30.74% (16.90)% (8.86)% 7.68% 28.00%
Net assets, end of period (in millions) $28.4 $20.7 $24.8 $24.3 $16.5
Ratio of expenses to average net assets 0.70% 0.68% 0.69% 0.68% 0.62%
Ratio of net investment income/(loss)
to average net assets 0.20% 0.44% 0.28% 0.50% 0.51%
Portfolio turnover rate 123% 48% 97% 144% 142%
If the Adviser had not reimbursed expenses and the Fund
had not received credits for directed brokerage
transactions or fees paid indirectly the ratios would
have been:
Ratio of expenses to average net assets 0.71% 0.69% 0.70% 0.69% 0.71%
Ratio of net investment income/(loss)
to average net assets 0.19% 0.43% 0.27% 0.50% 0.41%
(a) All per share amounts have been rounded to the nearest cent.
(b) The amount shown may not correlate with the change in aggregate
gains and losses of portfolio securities due to the timing of sales
and redemptions of fund shares.
(c) Total investment return assumes dividend reinvestment and does not
reflect any deduction for sales charges. Not annualized for periods
less than one year.
(d) Computed on an annualized basis for periods less than one year.
(e) Since Fund inception, July 17, 2001.
The AAL Mutual Funds
Financial Highlights - continued
The AAL Mid Cap Index Fund
Institutional Class Shares
- ----------------------------------------------------------------------------------------------------------------------------
Year Year Year Year Period
Ended Ended Ended Ended Ended
For a share outstanding throughout each period (a) 4/30/2004 4/30/2003 4/30/2002 4/30/2001 4/30/2000 (e)
- ----------------------------------------------------------------------------------------------------------------------------
---------- ---------- ---------- ---------- ----------
Net Asset Value, Beginning of Period $8.91 $11.23 $10.80 $10.90 $10.00
---------- ---------- ---------- ---------- ----------
Income from Investment Operations
Net investment income/(loss) 0.07 0.08 0.06 0.08 0.03
Net realized and unrealized gain/(loss)
on investments (b) 2.93 (2.07) 0.60 0.57 0.87
---------- ---------- ---------- ---------- ----------
Total from Investment Operations 3.00 (1.99) 0.66 0.65 0.90
---------- ---------- ---------- ---------- ----------
Less Distributions from
Net investment income (0.06) (0.08) (0.07) (0.09) --
Net realized gain on investments (0.06) (0.25) (0.16) (0.66) --
---------- ---------- ---------- ---------- ----------
Total Distributions (0.12) (0.33) (0.23) (0.75) --
---------- ---------- ---------- ---------- ----------
Net Asset Value, End of period $11.79 $8.91 $11.23 $10.80 $10.90
---------- ---------- ---------- ---------- ----------
Total return (c) 33.71% (17.68)% 6.23% 6.13% 9.00%
Net assets, end of period (in millions) $31.7 $20.8 $24.3 $13.0 $8.9
Ratio of expenses to average net assets (d) 0.54% 0.28% 0.20% 0.20% 0.20%
Ratio of net investment income/(loss)
to average net assets (d) 0.68% 0.89% 0.84% 0.90% 1.02%
Portfolio turnover rate 13% 22% 21% 54% 25%
If the Adviser had not reimbursed expenses and the Fund
had not received credits for directed brokerage
transactions or fees paid indirectly the ratios would
have been:
Ratio of expenses to average net assets (d) 0.55% 0.57% 0.88% 1.31% 1.27%
Ratio of net investment income/(loss)
to average net assets (d) 0.67% 0.60% 0.16% (0.21)% (0.05)%
The AAL Mid Cap Index Fund II
Class A Shares
- --------------------------------------------------------------------------------------------------------------------------------
Year Year Year Period
Ended Ended Ended Ended
For a share outstanding throughout each period (a) 4/30/2004 4/30/2003 4/30/2002 4/30/2001 (f)
- --------------------------------------------------------------------------------------------------------------------------------
---------- ---------- ---------- ----------
Net Asset Value, Beginning of Period $8.65 $10.71 $10.24 $10.00
---------- ---------- ---------- ----------
Income from Investment Operations
Net investment income/(loss) 0.01 -- (0.03) (0.04)
Net realized and unrealized gain/(loss)
on investments (b) 2.82 (1.97) 0.53 0.31
---------- ---------- ---------- ----------
Total from Investment Operations 2.83 (1.97) 0.50 0.27
---------- ---------- ---------- ----------
Less Distributions from
Net investment income -- -- -- --
Net realized gain on investments -- (0.09) (0.03) (0.03)
---------- ---------- ---------- ----------
Total Distributions -- (0.09) (0.03) (0.03)
---------- ---------- ---------- ----------
Net Asset Value, End of period $11.48 $8.65 $10.71 $10.24
---------- ---------- ---------- ----------
Total return (c) 32.72% (18.36)% 4.94% 2.73%
Net assets, end of period (in millions) $38.5 $29.0 $29.2 $18.1
Ratio of expenses to average net assets (d) 1.12% 1.21% 1.36% 1.71%
Ratio of net investment income/(loss) to average net assets (d) 0.09% (0.03)% (0.31)% (0.58)%
Portfolio turnover rate 30% 16% 15% 31%
If the Adviser had not reimbursed expenses and the Fund
had not received credits for directed brokerage
transactions or fees paid indirectly the ratios would
have been:
Ratio of expenses to average net assets (d) 1.24% 1.21% 1.36% 1.71%
Ratio of net investment income/(loss)
to average net assets (d) (0.03)% (0.03)% (0.31)% (0.58)%
The AAL Mid Cap Index Fund II
Class B Shares
- --------------------------------------------------------------------------------------------------------------------------------
Year Year Year Period
Ended Ended Ended Ended
For a share outstanding throughout each period (a) 4/30/2004 4/30/2003 4/30/2002 4/30/2001 (f)
- --------------------------------------------------------------------------------------------------------------------------------
---------- ---------- ---------- ----------
Net Asset Value, Beginning of Period $8.43 $10.53 $10.17 $10.00
---------- ---------- ---------- ----------
Income from Investment Operations
Net investment income/(loss) (0.04) (0.04) (0.10) (0.10)
Net realized and unrealized gain/(loss)
on investments (b) 2.74 (1.97) 0.49 0.30
---------- ---------- ---------- ----------
Total from Investment Operations 2.70 (2.01) 0.39 0.20
---------- ---------- ---------- ----------
Less Distributions from
Net investment income -- -- -- --
Net realized gain on investments -- (0.09) (0.03) (0.03)
---------- ---------- ---------- ----------
Total Distributions -- (0.09) (0.03) (0.03)
---------- ---------- ---------- ----------
Net Asset Value, End of period $11.13 $8.43 $10.53 $10.17
---------- ---------- ---------- ----------
Total return (c) 32.03% (19.05)% 3.89% 2.03%
Net assets, end of period (in millions) $5.4 $3.0 $2.7 $1.8
Ratio of expenses to average net assets (d) 1.68% 2.03% 2.30% 2.57%
Ratio of net investment income/(loss)
to average net assets (d) (0.46)% (0.85)% (1.25)% (1.42)%
Portfolio turnover rate 30% 16% 15% 31%
If the Adviser had not reimbursed expenses and the Fund
had not received credits for directed brokerage
transactions or fees paid indirectly the ratios would
have been:
Ratio of expenses to average net assets (d) 2.19% 2.20% 2.30% 2.57%
Ratio of net investment income/(loss)
to average net assets (d) (0.97)% (1.02)% (1.25)% (1.42)%
The AAL International Fund
Class A Shares
- ----------------------------------------------------------------------------------------------------------------------------
Year Year Year Year Year
Ended Ended Ended Ended Ended
For a share outstanding throughout each period (a) 4/30/2004 4/30/2003 4/30/2002 4/30/2001 4/30/2000
- ----------------------------------------------------------------------------------------------------------------------------
---------- ---------- ---------- ---------- ----------
Net Asset Value, Beginning of Period $6.68 $8.62 $10.56 $14.06 $11.35
---------- ---------- ---------- ---------- ----------
Income from Investment Operations
Net investment income/(loss) 0.03 0.03 0.01 0.25 --
Net realized and unrealized gain/(loss)
on investments (b) 2.09 (1.92) (1.84) (3.24) 2.71
---------- ---------- ---------- ---------- ----------
Total from Investment Operations 2.12 (1.89) (1.83) (2.99) 2.71
---------- ---------- ---------- ---------- ----------
Less Distributions from
Net investment income (0.01) (0.05) (0.11) (0.24) --
Net realized gain on investments -- -- -- (0.27) --
---------- ---------- ---------- ---------- ----------
Total Distributions (0.01) (0.05) (0.11) (0.51) --
---------- ---------- ---------- ---------- ----------
Net Asset Value, End of period $8.79 $6.68 $8.62 $10.56 $14.06
---------- ---------- ---------- ---------- ----------
Total return (c) 31.75% (22.17)% (17.27)% (21.61)% 23.91%
Net assets, end of period (in millions) $162.1 $126.5 $166.5 $190.6 $226.7
Ratio of expenses to average net assets 1.62% 1.71% 1.56% 1.38% 1.36%
Ratio of net investment income/(loss)
to average net assets 0.36% 0.20% 0.08% 2.06% (0.01)%
Portfolio turnover rate 75% 52% 63% 38% 44%
If the Adviser had not reimbursed expenses and the Fund
had not received credits for directed brokerage
transactions or fees paid indirectly the ratios would
have been:
Ratio of expenses to average net assets 1.62% 1.71% 1.56% 1.38% 1.41%
Ratio of net investment income/(loss)
to average net assets 0.36% 0.20% 0.08% 2.06% (0.07)%
The AAL International Fund
Class B Shares
- ----------------------------------------------------------------------------------------------------------------------------
Year Year Year Year Year
Ended Ended Ended Ended Ended
For a share outstanding throughout each period (a) 4/30/2004 4/30/2003 4/30/2002 4/30/2001 4/30/2000
- ----------------------------------------------------------------------------------------------------------------------------
---------- ---------- ---------- ---------- ----------
Net Asset Value, Beginning of Period $6.52 $8.50 $10.39 $13.75 $11.23
---------- ---------- ---------- ---------- ----------
Income from Investment Operations
Net investment income/(loss) (0.07) (0.09) (0.09) 0.10 (0.13)
Net realized and unrealized gain/(loss)
on investments (b) 2.04 (1.89) (1.79) (3.17) 2.65
---------- ---------- ---------- ---------- ----------
Total from Investment Operations 1.97 (1.98) (1.88) (3.07) 2.52
---------- ---------- ---------- ---------- ----------
Less Distributions from
Net investment income -- -- (0.01) (0.02) --
Net realized gain on investments -- -- -- (0.27) --
---------- ---------- ---------- ---------- ----------
Total Distributions -- -- (0.01) (0.29) --
---------- ---------- ---------- ---------- ----------
Net Asset Value, End of period $8.49 $6.52 $8.50 $10.39 $13.75
---------- ---------- ---------- ---------- ----------
Total return (c) 30.21% (23.29)% (18.09)% (22.56)% 22.44%
Net assets, end of period (in millions) $8.2 $6.4 $10.3 $13.7 $15.6
Ratio of expenses to average net assets 2.86% 3.18% 2.57% 2.53% 2.53%
Ratio of net investment income/(loss)
to average net assets (0.88)% (1.26)% (0.93)% 0.88% (1.19)%
Portfolio turnover rate 75% 52% 63% 38% 44%
If the Adviser had not reimbursed expenses and the Fund
had not received credits for directed brokerage
transactions or fees paid indirectly the ratios would
have been:
Ratio of expenses to average net assets 2.90% 3.18% 2.57% 2.53% 2.59%
Ratio of net investment income/(loss)
to average net assets (0.92)% (1.26)% (0.93)% 0.88% (1.25)%
The AAL International Fund
Institutional Class Shares
- ----------------------------------------------------------------------------------------------------------------------------
Year Year Year Year Year
Ended Ended Ended Ended Ended
For a share outstanding throughout each period (a) 4/30/2004 4/30/2003 4/30/2002 4/30/2001 4/30/2000
- ----------------------------------------------------------------------------------------------------------------------------
---------- ---------- ---------- ---------- ----------
Net Asset Value, Beginning of Period $6.73 $8.68 $10.63 $14.15 $11.37
---------- ---------- ---------- ---------- ----------
Income from Investment Operations
Net investment income/(loss) 0.10 0.08 0.03 0.26 0.08
Net realized and unrealized gain/(loss)
on investments (b) 2.12 (1.89) (1.80) (3.20) 2.73
---------- ---------- ---------- ---------- ----------
Total from Investment Operations 2.22 (1.81) (1.77) (2.94) 2.81
---------- ---------- ---------- ---------- ----------
Less Distributions from
Net investment income (0.06) (0.14) (0.18) (0.31) (0.03)
Net realized gain on investments -- -- -- (0.27) --
---------- ---------- ---------- ---------- ----------
Total Distributions (0.06) (0.14) (0.18) (0.58) (0.03)
---------- ---------- ---------- ---------- ----------
Net Asset Value, End of period $8.89 $6.73 $8.68 $10.63 $14.15
---------- ---------- ---------- ---------- ----------
Total return (c) 33.04% (21.45)% (16.61)% (21.12)% 24.69%
Net assets, end of period (in millions) $3.4 $2.8 $3.0 $3.3 $2.8
Ratio of expenses to average net assets 0.78% 0.77% 0.78% 0.75% 0.73%
Ratio of net investment income/(loss)
to average net assets 1.19% 1.15% 0.86% 2.42% 0.61%
Portfolio turnover rate 75% 52% 63% 38% 44%
If the Adviser had not reimbursed expenses and the Fund
had not received credits for directed brokerage
transactions or fees paid indirectly the ratios would
have been:
Ratio of expenses to average net assets 0.78% 0.77% 0.78% 0.75% 0.79%
Ratio of net investment income/(loss)
to average net assets 1.19% 1.15% 0.86% 2.42% 0.55%
(a) All per share amounts have been rounded to the nearest cent.
(b) The amount shown may not correlate with the change in aggregate
gains and losses of portfolio securities due to the timing of
sales and redemptions of fund shares.
(c) Total investment return assumes dividend reinvestment and
does not reflect any deduction for sales charges. Not
annualized for periods less than one year.
(d) Computed on an annualized basis for periods less than
one year.
(e) Since Fund inception, December 31, 1999.
(f) Since Fund inception, July 1, 2000.
The accompanying notes to the financial statements are an integral part of this schedule.
The AAL Mutual Funds
Financial Highlights - continued
The AAL Capital Growth Fund
Class A Shares
- ----------------------------------------------------------------------------------------------------------------------------
Year Year Year Year Year
Ended Ended Ended Ended Ended
For a share outstanding throughout each period (a) 4/30/2004 4/30/2003 4/30/2002 4/30/2001 4/30/2000
- ----------------------------------------------------------------------------------------------------------------------------
---------- ---------- ---------- ---------- ----------
Net Asset Value, Beginning of Period $25.39 $29.84 $34.82 $38.67 $35.87
---------- ---------- ---------- ---------- ----------
Income from Investment Operations
Net investment income/(loss) 0.11 0.10 0.05 0.19 0.13
Net realized and unrealized gain/(loss)
on investments (b) 3.75 (4.48) (4.86) (1.74) 3.19
---------- ---------- ---------- ---------- ----------
Total from Investment Operations 3.86 (4.38) (4.81) (1.55) 3.32
---------- ---------- ---------- ---------- ----------
Less Distributions from
Net investment income (0.10) (0.07) (0.09) (0.16) (0.09)
Net realized gain on investments -- -- (0.08) (2.14) (0.43)
---------- ---------- ---------- ---------- ----------
Total Distributions (0.10) (0.07) (0.17) (2.30) (0.52)
---------- ---------- ---------- ---------- ----------
Net Asset Value, End of period $29.15 $25.39 $29.84 $34.82 $38.67
---------- ---------- ---------- ---------- ----------
Total return (c) 15.23% (14.66)% (13.86)% (4.19)% 9.28%
Net assets, end of period (in millions) 2,807.4 $2,598.2 $3,385.5 $3,912.5 $4,115.1
Ratio of expenses to average net assets 1.01% 1.02% 0.95% 0.91% 0.90%
Ratio of net investment income/(loss)
to average net assets 0.37% 0.38% 0.16% 0.52% 0.35%
Portfolio turnover rate 22% 5% 3% 13% 8%
If the Adviser had not reimbursed expenses and the Fund
had not received credits for directed brokerage
transactions or fees paid indirectly the ratios would
have been:
Ratio of expenses to average net assets 1.01% 1.02% 0.95% 0.91% 0.92%
Ratio of net investment income/(loss)
to average net assets 0.37% 0.38% 0.16% 0.52% 0.33%
The AAL Capital Growth Fund
Class B Shares
- ----------------------------------------------------------------------------------------------------------------------------
Year Year Year Year Year
Ended Ended Ended Ended Ended
For a share outstanding throughout each period (a) 4/30/2004 4/30/2003 4/30/2002 4/30/2001 4/30/2000
- ----------------------------------------------------------------------------------------------------------------------------
---------- ---------- ---------- ---------- ----------
Net Asset Value, Beginning of Period $24.19 $28.67 $33.71 $37.71 $35.29
---------- ---------- ---------- ---------- ----------
Income from Investment Operations
Net investment income/(loss) (0.23) (0.28) (0.27) (0.15) (0.22)
Net realized and unrealized gain/(loss)
on investments (b) 3.59 (4.20) (4.69) (1.71) 3.07
---------- ---------- ---------- ---------- ----------
Total from Investment Operations 3.36 (4.48) (4.96) (1.86) 2.85
---------- ---------- ---------- ---------- ----------
Less Distributions from
Net investment income -- -- -- -- --
Net realized gain on investments -- -- (0.08) (2.14) (0.43)
---------- ---------- ---------- ---------- ----------
Total Distributions -- -- (0.08) (2.14) (0.43)
---------- ---------- ---------- ---------- ----------
Net Asset Value, End of period $27.55 $24.19 $28.67 $33.71 $37.71
---------- ---------- ---------- ---------- ----------
Total return (c) 13.89% (15.63)% (14.73)% (5.14)% 8.09%
Net assets, end of period (in millions) $75.3 $81.2 $126.4 $154.1 $148.6
Ratio of expenses to average net assets 2.17% 2.16% 1.97% 1.88% 1.95%
Ratio of net investment income/(loss)
to average net assets (0.79)% (0.75)% (0.86)% (0.44)% (0.69)%
Portfolio turnover rate 22% 5% 3% 13% 8%
If the Adviser had not reimbursed expenses and the Fund
had not received credits for directed brokerage
transactions or fees paid indirectly the ratios would
have been:
Ratio of expenses to average net assets 2.17% 2.16% 1.97% 1.88% 1.96%
Ratio of net investment income/(loss)
to average net assets (0.79)% (0.75)% (0.86)% (0.44)% (0.71)%
The AAL Capital Growth Fund
Institutional Class Shares
- ----------------------------------------------------------------------------------------------------------------------------
Year Year Year Year Year
Ended Ended Ended Ended Ended
For a share outstanding throughout each period (a) 4/30/2004 4/30/2003 4/30/2002 4/30/2001 4/30/2000
- ----------------------------------------------------------------------------------------------------------------------------
---------- ---------- ---------- ---------- ----------
Net Asset Value, Beginning of Period $25.46 $29.90 $34.88 $38.72 $35.89
---------- ---------- ---------- ---------- ----------
Income from Investment Operations
Net investment income/(loss) 0.23 0.21 0.18 0.33 0.27
Net realized and unrealized gain/(loss)
on investments (b) 3.77 (4.47) (4.88) (1.73) 3.20
---------- ---------- ---------- ---------- ----------
Total from Investment Operations 4.00 (4.26) (4.70) (1.40) 3.47
---------- ---------- ---------- ---------- ----------
Less Distributions from
---------- ---------- ---------- ---------- ----------
Net investment income (0.22) (0.18) (0.20) (0.30) (0.21)
---------- ---------- ---------- ---------- ----------
Net realized gain on investments -- -- (0.08) (2.14) (0.43)
Total Distributions (0.22) (0.18) (0.28) (2.44) (0.64)
---------- ---------- ---------- ---------- ----------
Net Asset Value, End of period $29.24 $25.46 $29.90 $34.88 $38.72
---------- ---------- ---------- ---------- ----------
Total return (c) 15.76% (14.24)% (13.53)% (3.82)% 9.70%
Net assets, end of period (in millions) $84.9 $68.2 $65.9 $91.8 $82.8
Ratio of expenses to average net assets 0.57% 0.55% 0.55% 0.54% 0.52%
Ratio of net investment income/(loss)
to average net assets 0.82% 0.85% 0.56% 0.90% 0.73%
Portfolio turnover rate 22% 5% 3% 13% 8%
If the Adviser had not reimbursed expenses and the Fund
had not received credits for directed brokerage
transactions or fees paid indirectly the ratios would
have been:
Ratio of expenses to average net assets 0.57% 0.55% 0.55% 0.54% 0.54%
Ratio of net investment income/(loss)
to average net assets 0.82% 0.85% 0.56% 0.90% 0.72%
The AAL Large Company Index Fund
Institutional Class Shares
- ----------------------------------------------------------------------------------------------------------------------------
Year Year Year Year Period
Ended Ended Ended Ended Ended
For a share outstanding throughout each period (a) 4/30/2004 4/30/2003 4/30/2002 4/30/2001 4/30/2000 (e)
- ----------------------------------------------------------------------------------------------------------------------------
---------- ---------- ---------- ---------- ----------
Net Asset Value, Beginning of Period $6.31 $7.38 $8.56 $9.95 $10.00
---------- ---------- ---------- ---------- ----------
Income from Investment Operations
Net investment income/(loss) 0.15 0.08 0.05 0.09 0.02
Net realized and unrealized gain/(loss)
on investments (b) 1.24 (1.07) (1.18) (1.40) (0.07)
---------- ---------- ---------- ---------- ----------
Total from Investment Operations 1.39 (0.99) (1.13) (1.31) (0.05)
---------- ---------- ---------- ---------- ----------
Less Distributions from
---------- ---------- ---------- ---------- ----------
Net investment income (0.15) (0.08) (0.05) (0.08) --
---------- ---------- ---------- ---------- ----------
Net Asset Value, End of period $7.55 $6.31 $7.38 $8.56 $9.95
---------- ---------- ---------- ---------- ----------
Total return (c) 22.00% (13.36)% (13.22)% (13.18)% (0.50)%
Net assets, end of period (in millions) $28.7 $62.1 $63.0 $26.6 $27.6
Ratio of expenses to average net assets (d) 0.54% 0.24% 0.20% 0.20% 0.20%
Ratio of net investment income/(loss)
to average net assets (d) 1.21% 1.55% 1.17% 0.97% 1.21%
Portfolio turnover rate 27% 23% 3% 9% 2%
If the Adviser had not reimbursed expenses and the Fund
had not received credits for directed brokerage
transactions or fees paid indirectly the ratios would
have been:
Ratio of expenses to average net assets (d) 0.55% 0.36% 0.49% 0.69% 0.93%
Ratio of net investment income/(loss)
to average net assets (d) 1.20% 1.43% 0.88% 0.49% 0.49%
The AAL Large Company Index Fund II
Class A Shares
- --------------------------------------------------------------------------------------------------------------------------------
Year Year Year Period
Ended Ended Ended Ended
For a share outstanding throughout each period (a) 4/30/2004 4/30/2003 4/30/2002 4/30/2001 (f)
- --------------------------------------------------------------------------------------------------------------------------------
---------- ---------- ---------- ----------
Net Asset Value, Beginning of Period $6.30 $7.32 $8.49 $10.00
---------- ---------- ---------- ----------
Income from Investment Operations
Net investment income/(loss) 0.08 0.05 -- (0.01)
Net realized and unrealized gain/(loss)
on investments (b) 1.31 (1.05) (1.17) (1.50)
---------- ---------- ---------- ----------
Total from Investment Operations 1.39 (1.00) (1.17) (1.51)
---------- ---------- ---------- ----------
Less Distributions from
---------- ---------- ---------- ----------
Net investment income (0.08) (0.02) -- --
---------- ---------- ---------- ----------
Net Asset Value, End of period $7.61 $6.30 $7.32 $8.49
---------- ---------- ---------- ----------
Total return (c) 22.09% (13.58)% (13.78)% (15.10)%
Net assets, end of period (in millions) $51.2 $27.8 $30.2 $21.1
Ratio of expenses to average net assets (d) 0.41% 0.93% 1.29% 1.46%
Ratio of net investment income/(loss)
to average net assets (d) 1.28% 0.86% 0.08% (0.20)%
Portfolio turnover rate 6% 16% 4% 9%
If the Adviser had not reimbursed expenses and the Fund
had not received credits for directed brokerage
transactions or fees paid indirectly the ratios would
have been:
Ratio of expenses to average net assets (d) 1.17% 1.18% 1.29% 1.46%
Ratio of net investment income/(loss)
to average net assets (d) 0.52% 0.61% 0.08% (0.20)%
The AAL Large Company Index Fund II
Class B Shares
- --------------------------------------------------------------------------------------------------------------------------------
Year Year Year Period
Ended Ended Ended Ended
For a share outstanding throughout each period (a) 4/30/2004 4/30/2003 4/30/2002 4/30/2001 (f)
- --------------------------------------------------------------------------------------------------------------------------------
---------- ---------- ---------- ----------
Net Asset Value, Beginning of Period $6.15 $7.20 $8.43 $10.00
---------- ---------- ---------- ----------
Income from Investment Operations
Net investment income/(loss) -- 0.01 (0.05) (0.06)
Net realized and unrealized gain/(loss)
on investments (b) 1.29 (1.06) (1.18) (1.51)
---------- ---------- ---------- ----------
Total from Investment Operations 1.29 (1.05) (1.23) (1.57)
---------- ---------- ---------- ----------
Less Distributions from
---------- ---------- ---------- ----------
Net investment income -- -- -- --
---------- ---------- ---------- ----------
Net Asset Value, End of period $7.44 $6.15 $7.20 $8.43
---------- ---------- ---------- ----------
Total return (c) 20.98% (14.58)% (14.59)% (15.70)%
Net assets, end of period (in millions) $6.4 $3.4 $2.6 $1.8
Ratio of expenses to average net assets (d) 1.44% 1.94% 2.18% 2.33%
Ratio of net investment income/(loss)
to average net assets (d) 0.25% (0.15)% (0.81)% (1.06)%
Portfolio turnover rate 6% 16% 4% 9%
If the Adviser had not reimbursed expenses and the Fund
had not received credits for directed brokerage
transactions or fees paid indirectly the ratios would
have been:
Ratio of expenses to average net assets (d) 2.20% 2.19% 2.18% 2.33%
Ratio of net investment income/(loss)
to average net assets (d) (0.51)% (0.40)% (0.81)% (1.06)%
(a) All per share amounts have been rounded to the nearest cent.
(b) The amount shown may not correlate with the change in aggregate
gains and losses of portfolio securities due to the timing of
sales and redemptions of fund shares.
(c) Total investment return assumes dividend reinvestment and
does not reflect any deduction for sales charges. Not
annualized for periods less than one year.
(d) Computed on an annualized basis for periods less than
one year.
(e) Since Fund inception, December 31, 1999.
(f) Since Fund inception, July 1, 2000.
The accompanying notes to the financial statements are an integral part of this schedule.
The AAL Mutual Funds
Financial Highlights - continued
The AAL Equity Income Fund
Class A Shares
- ----------------------------------------------------------------------------------------------------------------------------
Year Year Year Year Year
Ended Ended Ended Ended Ended
For a share outstanding throughout each period (a) 4/30/2004 4/30/2003 4/30/2002 4/30/2001 4/30/2000
- ----------------------------------------------------------------------------------------------------------------------------
---------- ---------- ---------- ---------- ----------
Net Asset Value, Beginning of Period $10.18 $12.90 $14.57 $14.40 $14.68
---------- ---------- ---------- ---------- ----------
Income from Investment Operations
Net investment income/(loss) 0.11 0.11 0.15 0.21 0.18
Net realized and unrealized gain/(loss)
on investments (b) 2.38 (2.71) (1.64) 0.94 (0.30)
---------- ---------- ---------- ---------- ----------
Total from Investment Operations 2.49 (2.60) (1.49) 1.15 (0.12)
---------- ---------- ---------- ---------- ----------
Less Distributions from
Net investment income (0.07) (0.11) (0.13) (0.21) (0.16)
Net realized gain on investments -- -- (0.05) (0.77) --
Return of capital -- (0.01) -- -- --
---------- ---------- ---------- ---------- ----------
Total Distributions (0.07) (0.12) (0.18) (0.98) (0.16)
---------- ---------- ---------- ---------- ----------
Net Asset Value, End of period $12.60 $10.18 $12.90 $14.57 $14.40
---------- ---------- ---------- ---------- ----------
Total return (c) 24.51% (20.19)% (10.26)% 8.26% (0.80)%
Net assets, end of period (in millions) $239.4 $206.7 $292.7 $305.1 $277.6
Ratio of expenses to average net assets 1.05% 1.06% 0.97% 0.96% 0.92%
Ratio of net investment income/(loss)
to average net assets 0.94% 1.04% 1.14% 1.48% 1.24%
Portfolio turnover rate 25% 63% 34% 26% 27%
If the Adviser had not reimbursed expenses and the Fund
had not received credits for directed brokerage
transactions or fees paid indirectly the ratios would
have been:
Ratio of expenses to average net assets 1.06% 1.07% 0.98% 0.96% 0.98%
Ratio of net investment income/(loss)
to average net assets 0.93% 1.03% 1.13% 1.47% 1.18%
The AAL Equity Income Fund
Class B Shares
- ----------------------------------------------------------------------------------------------------------------------------
Year Year Year Year Year
Ended Ended Ended Ended Ended
For a share outstanding throughout each period (a) 4/30/2004 4/30/2003 4/30/2002 4/30/2001 4/30/2000
- ----------------------------------------------------------------------------------------------------------------------------
---------- ---------- ---------- ---------- ----------
Net Asset Value, Beginning of Period $10.16 $12.87 $14.54 $14.38 $14.66
---------- ---------- ---------- ---------- ----------
Income from Investment Operations
Net investment income/(loss) (0.02) (0.01) 0.03 0.06 0.02
Net realized and unrealized gain/(loss)
on investments (b) 2.36 (2.69) (1.64) 0.93 (0.28)
---------- ---------- ---------- ---------- ----------
Total from Investment Operations 2.34 (2.70) (1.61) 0.99 (0.26)
---------- ---------- ---------- ---------- ----------
Less Distributions from
Net investment income -- (0.01) (0.01) (0.06) (0.02)
Net realized gain on investments -- -- (0.05) (0.77) --
Return of capital -- -- -- -- --
---------- ---------- ---------- ---------- ----------
Total Distributions -- (0.01) (0.06) (0.83) (0.02)
---------- ---------- ---------- ---------- ----------
Net Asset Value, End of period $12.50 $10.16 $12.87 $14.54 $14.38
---------- ---------- ---------- ---------- ----------
Total return (c) 23.03% (21.01)% (11.11)% 7.12% (1.80)%
Net assets, end of period (in millions) $7.5 $8.1 $12.4 $13.4 $11.6
Ratio of expenses to average net assets 2.15% 2.16% 1.90% 1.98% 1.99%
Ratio of net investment income/(loss)
to average net assets (0.17)% (0.06)% 0.21% 0.45% 0.17%
Portfolio turnover rate 25% 63% 34% 26% 27%
If the Adviser had not reimbursed expenses and the Fund
had not received credits for directed brokerage
transactions or fees paid indirectly the ratios would
have been:
Ratio of expenses to average net assets 2.16% 2.17% 1.91% 1.98% 2.05%
Ratio of net investment income/(loss)
to average net assets (0.18)% (0.07)% 0.20% 0.45% 0.11%
The AAL Equity Income Fund
Institutional Class Shares
- ----------------------------------------------------------------------------------------------------------------------------
Year Year Year Year Year
Ended Ended Ended Ended Ended
For a share outstanding throughout each period (a) 4/30/2004 4/30/2003 4/30/2002 4/30/2001 4/30/2000
- ----------------------------------------------------------------------------------------------------------------------------
---------- ---------- ---------- ---------- ----------
Net Asset Value, Beginning of Period $10.20 $12.92 $14.59 $14.43 $14.70
---------- ---------- ---------- ---------- ----------
Income from Investment Operations
Net investment income/(loss) 0.17 0.18 0.21 0.27 0.31
Net realized and unrealized gain/(loss)
on investments (b) 2.39 (2.73) (1.64) 0.93 (0.35)
---------- ---------- ---------- ---------- ----------
Total from Investment Operations 2.56 (2.55) (1.43) 1.20 (0.04)
---------- ---------- ---------- ---------- ----------
Less Distributions from
Net investment income (0.12) (0.15) (0.19) (0.27) (0.23)
Net realized gain on investments -- -- (0.05) (0.77) --
Return of capital -- (0.02) -- -- --
---------- ---------- ---------- ---------- ----------
Total Distributions (0.12) (0.17) (0.24) (1.04) (0.23)
---------- ---------- ---------- ---------- ----------
Net Asset Value, End of period $12.64 $10.20 $12.92 $14.59 $14.43
---------- ---------- ---------- ---------- ----------
Total return (c) 25.16% (19.70)% (9.83)% 8.64% (0.29)%
Net assets, end of period (in millions) $13.7 $9.8 $9.1 $9.5 $6.2
Ratio of expenses to average net assets 0.51% 0.51% 0.50% 0.51% 0.46%
Ratio of net investment income/(loss)
to average net assets 1.47% 1.59% 1.61% 1.94% 1.71%
Portfolio turnover rate 25% 63% 34% 26% 27%
If the Adviser had not reimbursed expenses and the Fund
had not received credits for directed brokerage
transactions or fees paid indirectly the ratios would
have been:
Ratio of expenses to average net assets 0.52% 0.52% 0.51% 0.51% 0.52%
Ratio of net investment income/(loss)
to average net assets 1.46% 1.58% 1.60% 1.94% 1.65%
The AAL Balanced Fund
Class A Shares
- ----------------------------------------------------------------------------------------------------------------------------
Year Year Year Year Year
Ended Ended Ended Ended Ended
For a share outstanding throughout each period (a) 4/30/2004 4/30/2003 4/30/2002 4/30/2001 4/30/2000
- ----------------------------------------------------------------------------------------------------------------------------
---------- ---------- ---------- ---------- ----------
Net Asset Value, Beginning of Period $10.75 $11.52 $12.41 $12.41 $12.15
---------- ---------- ---------- ---------- ----------
Income from Investment Operations
Net investment income 0.17 0.19 0.26 0.38 0.32
Net realized and unrealized gain/(loss)
on investments (b) 0.92 (0.76) (0.88) -- 0.25
---------- ---------- ---------- ---------- ----------
Total from Investment Operations 1.09 (0.57) (0.62) 0.38 0.57
---------- ---------- ---------- ---------- ----------
Less Distributions from
---------- ---------- ---------- ---------- ----------
Net Investment Income (0.19) (0.20) (0.27) (0.38) (0.31)
---------- ---------- ---------- ---------- ----------
Net Asset Value, End of period $11.65 $10.75 $11.52 $12.41 $12.41
---------- ---------- ---------- ---------- ----------
Total return (c) 10.22% (4.90)% (5.02)% 3.10% 4.78%
Net assets, end of period (in millions) $278.0 $260.8 $305.6 $291.7 $256.1
Ratio of expenses to average net assets 1.06% 1.05% 0.99% 0.98% 1.09%
Ratio of net investment income to average net assets 1.48% 1.77% 2.19% 3.07% 2.76%
Portfolio turnover rate (d) 194% 69% 76% 83% 65%
If the Adviser had not reimbursed expenses and the Fund
had not received credits for directed brokerage
transactions or fees paid indirectly the ratios would
have been:
Ratio of expenses to average net assets 1.07% 1.07% 1.02% 1.02% 1.14%
Ratio of net investment income to average net assets 1.47% 1.75% 2.16% 3.03% 2.72%
The AAL Balanced Fund
Class B Shares
- ----------------------------------------------------------------------------------------------------------------------------
Year Year Year Year Year
Ended Ended Ended Ended Ended
For a share outstanding throughout each period (a) 4/30/2004 4/30/2003 4/30/2002 4/30/2001 4/30/2000
- ----------------------------------------------------------------------------------------------------------------------------
---------- ---------- ---------- ---------- ----------
Net Asset Value, Beginning of Period $10.70 $11.47 $12.35 $12.35 $12.10
---------- ---------- ---------- ---------- ----------
Income from Investment Operations
Net investment income 0.06 0.11 0.15 0.26 0.21
Net realized and unrealized gain/(loss)
on investments (b) 0.92 (0.76) (0.87) -- 0.24
---------- ---------- ---------- ---------- ----------
Total from Investment Operations 0.98 (0.65) (0.72) 0.26 0.45
---------- ---------- ---------- ---------- ----------
Less Distributions from
---------- ---------- ---------- ---------- ----------
Net Investment Income (0.08) (0.12) (0.16) (0.26) (0.20)
---------- ---------- ---------- ---------- ----------
Net Asset Value, End of period $11.60 $10.70 $11.47 $12.35 $12.35
---------- ---------- ---------- ---------- ----------
Total return (c) 9.22% (5.68)% (5.83)% 2.13% 3.74%
Net assets, end of period (in millions) $18.6 $19.3 $22.3 $21.1 $18.2
Ratio of expenses to average net assets 2.02% 1.84% 1.89% 1.94% 2.03%
Ratio of net investment income to average net assets 0.52% 0.97% 1.29% 2.11% 1.82%
Portfolio turnover rate (d) 194% 60% 76% 83% 65%
If the Adviser had not reimbursed expenses and the Fund
had not received credits for directed brokerage
transactions or fees paid indirectly the ratios would
have been:
Ratio of expenses to average net assets 2.03% 1.86% 1.92% 1.98% 2.08%
Ratio of net investment income to average net assets 0.51% 0.95% 1.26% 2.07% 1.77%
The AAL Balanced Fund
Institutional Class Shares
- ----------------------------------------------------------------------------------------------------------------------------
Year Year Year Year Year
Ended Ended Ended Ended Ended
For a share outstanding throughout each period (a) 4/30/2004 4/30/2003 4/30/2002 4/30/2001 4/30/2000
- ----------------------------------------------------------------------------------------------------------------------------
---------- ---------- ---------- ---------- ----------
Net Asset Value, Beginning of Period $10.74 $11.51 $12.39 $12.40 $12.13
---------- ---------- ---------- ---------- ----------
Income from Investment Operations
Net investment income 0.22 0.21 0.30 0.42 0.39
Net realized and unrealized gain/(loss)
on investments (b) 0.93 (0.73) (0.86) -- 0.25
---------- ---------- ---------- ---------- ----------
Total from Investment Operations 1.15 (0.52) (0.56) 0.42 0.64
---------- ---------- ---------- ---------- ----------
Less Distributions from
---------- ---------- ---------- ---------- ----------
Net Investment Income (0.25) (0.25) (0.32) (0.43) (0.37)
---------- ---------- ---------- ---------- ----------
Net Asset Value, End of period $11.64 $10.74 $11.51 $12.39 $12.40
---------- ---------- ---------- ---------- ----------
Total return (c) 10.75% (4.45)% (4.65)% 3.50% 5.33%
Net assets, end of period (in millions) $111.2 $107.8 $3.7 $3.4 $3.0
Ratio of expenses to average net assets 0.59% 0.56% 0.58% 0.59% 0.60%
Ratio of net investment income to average net assets 1.96% 2.26% 2.60% 3.46% 3.25%
Portfolio turnover rate (d) 194% 69% 76% 83% 65%
If the Adviser had not reimbursed expenses and the Fund
had not received credits for directed brokerage
transactions or fees paid indirectly the ratios would
have been:
Ratio of expenses to average net assets 0.60% 0.57% 0.62% 0.63% 0.64%
Ratio of net investment income to average net assets 1.95% 2.25% 2.56% 3.43% 3.20%
(a) All per share amounts have been rounded to the nearest cent.
(b) The amount shown may not correlate with the change in aggregate
gains and losses of portfolio securities due to the timing of sales
and redemptions of fund shares.
(c) Total investment return assumes dividend reinvestment and does not
reflect any deduction for sales charges.
(d) Portfolio turnover rates for the year ended April 30, 2003,
excluded the effect of participation in mortgage dollar roll transactions.
The AAL Mutual Funds
Financial Highlights - continued
The AAL High Yield Bond Fund
Class A Shares
- ----------------------------------------------------------------------------------------------------------------------------
Year Year Year Year Year
Ended Ended Ended Ended Ended
For a share outstanding throughout each period (a) 4/30/2004 4/30/2003 4/30/2002 4/30/2001 4/30/2000
- ----------------------------------------------------------------------------------------------------------------------------
---------- ---------- ---------- ---------- ----------
Net Asset Value, Beginning of Period $6.27 $6.19 $6.76 $7.44 $8.92
---------- ---------- ---------- ---------- ----------
Income from Investment Operations
Net investment income 0.46 0.50 0.54 0.63 0.87
Net realized and unrealized gain/(loss)
on investments (b) 0.28 0.08 (0.56) (0.68) (1.48)
---------- ---------- ---------- ---------- ----------
Total from Investment Operations 0.74 0.58 (0.02) (0.05) (0.61)
---------- ---------- ---------- ---------- ----------
Less Distributions from
---------- ---------- ---------- ---------- ----------
Net Investment Income (0.47) (0.50) (0.55) (0.63) (0.87)
---------- ---------- ---------- ---------- ----------
Net Asset Value, End of period $6.54 $6.27 $6.19 $6.76 $7.44
---------- ---------- ---------- ---------- ----------
Total return (c) 12.08% 10.59% (0.26)% (0.81)% (7.00)%
Net assets, end of period (in millions) $135.1 $117.4 $118.6 $121.0 $134.3
Ratio of expenses to average net assets 1.10% 0.93% 1.00% 1.00% 0.96%
Ratio of net investment income to average net assets 6.98% 8.72% 8.41% 9.06% 10.54%
Portfolio turnover rate 91% 103% 72% 106% 54%
If the Adviser had not reimbursed expenses and the Fund
had not received credits for fees paid indirectly the
ratios would have been:
Ratio of expenses to average net assets 1.10% 1.03% 1.17% 1.08% 1.12%
Ratio of net investment income to average net assets 6.98% 8.62% 8.24% 8.98% 10.38%
The AAL High Yield Bond Fund
Class B Shares
- ----------------------------------------------------------------------------------------------------------------------------
Year Year Year Year Year
Ended Ended Ended Ended Ended
For a share outstanding throughout each period (a) 4/30/2004 4/30/2003 4/30/2002 4/30/2001 4/30/2000
- ----------------------------------------------------------------------------------------------------------------------------
---------- ---------- ---------- ---------- ----------
Net Asset Value, Beginning of Period $6.27 $6.19 $6.76 $7.44 $8.92
---------- ---------- ---------- ---------- ----------
Income from Investment Operations
Net investment income 0.40 0.45 0.49 0.58 0.81
Net realized and unrealized gain/(loss)
on investments (b) 0.28 0.08 (0.56) (0.68) (1.48)
---------- ---------- ---------- ---------- ----------
Total from Investment Operations 0.68 0.53 (0.07) (0.10) (0.67)
---------- ---------- ---------- ---------- ----------
Less Distributions from
---------- ---------- ---------- ---------- ----------
Net Investment Income (0.41) (0.45) (0.50) (0.58) (0.81)
---------- ---------- ---------- ---------- ----------
Net Asset Value, End of period $6.54 $6.27 $6.19 $6.76 $7.44
---------- ---------- ---------- ---------- ----------
Total return (c) 11.06% 9.61% (1.02)% (1.53)% (7.65)%
Net assets, end of period (in millions) $6.1 $6.0 $8.2 $9.7 $11.6
Ratio of expenses to average net assets 2.01% 1.84% 1.74% 1.73% 1.62%
Ratio of net investment income to average net assets 6.07% 7.81% 7.67% 8.33% 9.88%
Portfolio turnover rate 91% 103% 72% 106% 54%
If the Adviser had not reimbursed expenses and the Fund
had not received credits for fees paid indirectly the
ratios would have been:
Ratio of expenses to average net assets 2.01% 2.01% 1.93% 1.99% 1.97%
Ratio of net investment income to average net assets 6.07% 7.64% 7.48% 8.08% 9.53%
The AAL High Yield Bond Fund
Institutional Class Shares
- ----------------------------------------------------------------------------------------------------------------------------
Year Year Year Year Year
Ended Ended Ended Ended Ended
For a share outstanding throughout each period (a) 4/30/2004 4/30/2003 4/30/2002 4/30/2001 4/30/2000
- ----------------------------------------------------------------------------------------------------------------------------
---------- ---------- ---------- ---------- ----------
Net Asset Value, Beginning of Period $6.27 $6.19 $6.76 $7.43 $8.91
---------- ---------- ---------- ---------- ----------
Income from Investment Operations
Net investment income 0.48 0.51 0.56 0.65 0.89
Net realized and unrealized gain/(loss)
on investments (b) 0.29 0.09 (0.57) (0.67) (1.48)
---------- ---------- ---------- ---------- ----------
Total from Investment Operations 0.77 0.60 (0.01) (0.02) (0.59)
---------- ---------- ---------- ---------- ----------
Less Distributions from
---------- ---------- ---------- ---------- ----------
Net Investment Income (0.50) (0.52) (0.56) (0.65) (0.89)
---------- ---------- ---------- ---------- ----------
Net Asset Value, End of period $6.54 $6.27 $6.19 $6.76 $7.43
---------- ---------- ---------- ---------- ----------
Total return (c) 12.56% 10.88% 0.05% (0.34)% (6.67)%
Net assets, end of period (in millions) $3.8 $3.3 $2.7 $2.2 $2.0
Ratio of expenses to average net assets 0.67% 0.67% 0.68% 0.67% 0.53%
Ratio of net investment income to average net assets 7.41% 8.98% 8.73% 9.34% 11.00%
Portfolio turnover rate 91% 103% 72% 106% 54%
If the Adviser had not reimbursed expenses and the Fund
had not received credits for fees paid indirectly the
ratios would have been:
Ratio of expenses to average net assets 0.67% 0.67% 0.68% 0.67% 0.62%
Ratio of net investment income to average net assets 7.41% 8.98% 8.73% 9.34% 10.92%
The AAL Municipal Bond Fund
Class A Shares
- ----------------------------------------------------------------------------------------------------------------------------
Year Year Year Year Year
Ended Ended Ended Ended Ended
For a share outstanding throughout each period (a) 4/30/2004 4/30/2003 4/30/2002 4/30/2001 4/30/2000
- ----------------------------------------------------------------------------------------------------------------------------
---------- ---------- ---------- ---------- ----------
Net Asset Value, Beginning of Period $11.52 $11.21 $10.96 $10.45 $11.47
---------- ---------- ---------- ---------- ----------
Income from Investment Operations
Net investment income 0.49 0.50 0.54 0.55 0.53
Net realized and unrealized gain/(loss)
on investments (b) (0.22) 0.31 0.25 0.51 (1.01)
---------- ---------- ---------- ---------- ----------
Total from Investment Operations 0.27 0.81 0.79 1.06 (0.48)
---------- ---------- ---------- ---------- ----------
Less Distributions from
Net investment income (0.49) (0.50) (0.54) (0.55) (0.53)
Net realized gain on investments -- -- -- -- (0.01)
---------- ---------- ---------- ---------- ----------
Total Distributions (0.49) (0.50) (0.54) (0.55) (0.54)
---------- ---------- ---------- ---------- ----------
Net Asset Value, End of period $11.30 $11.52 $11.21 $10.96 $10.45
---------- ---------- ---------- ---------- ----------
Total return (c) 2.34% 7.38% 7.27% 10.34% (4.09)%
Net assets, end of period (in millions) $633.9 $671.6 $598.6 $503.7 $461.3
Ratio of expenses to average net assets 0.81% 0.79% 0.77% 0.73% 0.78%
Ratio of net investment income to average net assets 4.24% 4.41% 4.77% 5.06% 4.98%
Portfolio turnover rate 11% 18% 65% 110% 210%
If the Adviser had not reimbursed expenses and the Fund
had not received credits for fees paid indirectly the
ratios would have been:
Ratio of expenses to average net assets 0.81% 0.79% 0.82% 0.81% 0.84%
Ratio of net investment income to average net assets 4.24% 4.41% 4.72% 4.98% 4.93%
The AAL Municipal Bond Fund
Class B Shares
- ----------------------------------------------------------------------------------------------------------------------------
Year Year Year Year Year
Ended Ended Ended Ended Ended
For a share outstanding throughout each period (a) 4/30/2004 4/30/2003 4/30/2002 4/30/2001 4/30/2000
- ----------------------------------------------------------------------------------------------------------------------------
---------- ---------- ---------- ---------- ----------
Net Asset Value, Beginning of Period $11.52 $11.20 $10.95 $10.44 $11.47
---------- ---------- ---------- ---------- ----------
Income from Investment Operations
Net investment income 0.40 0.42 0.44 0.46 0.44
Net realized and unrealized gain/(loss)
on investments (b) (0.24) 0.32 0.25 0.51 (1.02)
---------- ---------- ---------- ---------- ----------
Total from Investment Operations 0.16 0.74 0.69 0.97 (0.58)
---------- ---------- ---------- ---------- ----------
Less Distributions from
Net investment income (0.39) (0.42) (0.44) (0.46) (0.44)
Net realized gain on investments -- -- -- -- (0.01)
---------- ---------- ---------- ---------- ----------
Total Distributions (0.39) (0.42) (0.44) (0.46) (0.45)
---------- ---------- ---------- ---------- ----------
Net Asset Value, End of period $11.29 $11.52 $11.20 $10.95 $10.44
---------- ---------- ---------- ---------- ----------
Total return (c) 1.42% 6.65% 6.40% 9.39% (4.99)%
Net assets, end of period (in millions) $13.2 $12.3 $11.0 $8.5 $7.3
Ratio of expenses to average net assets 1.63% 1.56% 1.57% 1.61% 1.59%
Ratio of net investment income to average net assets 3.42% 3.64% 3.97% 4.18% 4.19%
Portfolio turnover rate 11% 18% 65% 110% 210%
If the Adviser had not reimbursed expenses and the Fund
had not received credits for fees paid indirectly the
ratios would have been:
Ratio of expenses to average net assets 1.63% 1.56% 1.62% 1.69% 1.64%
Ratio of net investment income to average net assets 3.42% 3.64% 3.92% 4.10% 4.14%
The AAL Municipal Bond Fund
Institutional Class Shares
- ----------------------------------------------------------------------------------------------------------------------------
Year Year Year Year Year
Ended Ended Ended Ended Ended
For a share outstanding throughout each period (a) 4/30/2004 4/30/2003 4/30/2002 4/30/2001 4/30/2000
- ----------------------------------------------------------------------------------------------------------------------------
---------- ---------- ---------- ---------- ----------
Net Asset Value, Beginning of Period $11.52 $11.20 $10.95 $10.45 $11.47
---------- ---------- ---------- ---------- ----------
Income from Investment Operations
Net investment income 0.53 0.54 0.57 0.58 0.57
Net realized and unrealized gain/(loss)
on investments (b) (0.22) 0.32 0.25 0.50 (1.01)
---------- ---------- ---------- ---------- ----------
Total from Investment Operations 0.31 0.86 0.82 1.08 (0.44)
---------- ---------- ---------- ---------- ----------
Less Distributions from
Net investment income (0.53) (0.54) (0.57) (0.58) (0.57)
Net realized gain on investments -- -- -- -- (0.01)
---------- ---------- ---------- ---------- ----------
Total Distributions (0.53) (0.54) (0.57) (0.58) (0.58)
---------- ---------- ---------- ---------- ----------
Net Asset Value, End of period $11.30 $11.52 $11.20 $10.95 $10.45
---------- ---------- ---------- ---------- ----------
Total return (c) 2.66% 7.81% 7.61% 10.56% (3.78)%
Net assets, end of period (in millions) $2.8 $3.4 $5.3 $2.5 $0.5
Ratio of expenses to average net assets 0.50% 0.48% 0.46% 0.42% 0.47%
Ratio of net investment income to average net assets 4.55% 4.72% 5.08% 5.37% 5.32%
Portfolio turnover rate 11% 18% 65% 110% 210%
If the Adviser had not reimbursed expenses and the Fund
had not received credits for fees paid indirectly the
ratios would have been:
Ratio of expenses to average net assets 0.50% 0.48% 0.51% 0.50% 0.52%
Ratio of net investment income to average net assets 4.55% 4.72% 5.03% 5.29% 5.27%
(a) All per share amounts have been rounded to the nearest cent.
(b) The amount shown may not correlate with the change in aggregate
gains and losses of portfolio securities due to the timing of sales
and redemptions of fund shares.
(c) Total investment return assumes dividend reinvestment and does not
reflect any deduction for sales charges.
The AAL Mutual Funds
Financial Highlights - continued
The AAL Bond Fund
Class A Shares
- ----------------------------------------------------------------------------------------------------------------------------
Year Year Year Year Year
Ended Ended Ended Ended Ended
For a share outstanding throughout each period (a) 4/30/2004 4/30/2003 4/30/2002 4/30/2001 4/30/2000
- ----------------------------------------------------------------------------------------------------------------------------
---------- ---------- ---------- ---------- ----------
Net Asset Value, Beginning of Period $10.31 $9.82 $9.80 $9.32 $9.92
---------- ---------- ---------- ---------- ----------
Income from Investment Operations
Net investment income 0.40 0.42 0.56 0.61 0.58
Net realized and unrealized gain/(loss)
on investments (b) (0.12) 0.52 0.02 0.48 (0.60)
---------- ---------- ---------- ---------- ----------
Total from Investment Operations 0.28 0.94 0.58 1.09 (0.02)
---------- ---------- ---------- ---------- ----------
Less Distributions from
---------- ---------- ---------- ---------- ----------
Net Investment Income (0.45) (0.45) (0.56) (0.61) (0.58)
---------- ---------- ---------- ---------- ----------
Net Asset Value, End of period $10.14 $10.31 $9.82 $9.80 $9.32
---------- ---------- ---------- ---------- ----------
Total return (c) 2.74% 9.79% 6.01% 12.08% (0.11)%
Net assets, end of period (in millions) $460.5 $526.5 $451.5 $353.5 $321.7
Ratio of expenses to average net assets 0.88% 0.85% 0.81% 0.81% 0.83%
Ratio of net investment income to average net assets 3.86% 4.19% 5.54% 6.38% 6.12%
Portfolio turnover rate (d) 463% 149% 160% 172% 163%
If the Adviser had not reimbursed expenses and the Fund
had not received credits for fees paid indirectly the
ratios would have been:
Ratio of expenses to average net assets 0.89% 0.86% 0.88% 0.91% 0.91%
Ratio of net investment income to average net assets 3.85% 4.18% 5.47% 6.27% 6.04%
The AAL Bond Fund
Class B Shares
- ----------------------------------------------------------------------------------------------------------------------------
Year Year Year Year Year
Ended Ended Ended Ended Ended
For a share outstanding throughout each period (a) 4/30/2004 4/30/2003 4/30/2002 4/30/2001 4/30/2000
- ----------------------------------------------------------------------------------------------------------------------------
---------- ---------- ---------- ---------- ----------
Net Asset Value, Beginning of Period $10.32 $9.82 $9.80 $9.32 $9.92
---------- ---------- ---------- ---------- ----------
Income from Investment Operations
Net investment income 0.30 0.33 0.47 0.52 0.49
Net realized and unrealized gain/(loss)
on investments (b) (0.12) 0.53 0.02 0.48 (0.60)
---------- ---------- ---------- ---------- ----------
Total from Investment Operations 0.18 0.86 0.49 1.00 (0.11)
---------- ---------- ---------- ---------- ----------
Less Distributions from
---------- ---------- ---------- ---------- ----------
Net Investment Income (0.35) (0.36) (0.47) (0.52) (0.49)
---------- ---------- ---------- ---------- ----------
Net Asset Value, End of period $10.15 $10.32 $9.82 $9.80 $9.32
---------- ---------- ---------- ---------- ----------
Total return (c) 1.75% 8.91% 5.03% 11.04% (1.09)%
Net assets, end of period (in millions) $13.4 $13.2 $7.9 $4.6 $3.6
Ratio of expenses to average net assets 1.86% 1.77% 1.73% 1.73% 1.80%
Ratio of net investment income to average net assets 2.89% 3.28% 4.64% 5.45% 5.17%
Portfolio turnover rate (d) 463% 149% 160% 172% 163%
If the Adviser had not reimbursed expenses and the Fund
had not received credits for fees paid indirectly the
ratios would have been:
Ratio of expenses to average net assets 1.87% 1.78% 1.80% 1.83% 1.88%
Ratio of net investment income to average net assets 2.88% 3.27% 4.57% 5.35% 5.09%
The AAL Bond Fund
Institutional Class Shares
- ----------------------------------------------------------------------------------------------------------------------------
Year Year Year Year Year
Ended Ended Ended Ended Ended
For a share outstanding throughout each period (a) 4/30/2004 4/30/2003 4/30/2002 4/30/2001 4/30/2000
- ----------------------------------------------------------------------------------------------------------------------------
---------- ---------- ---------- ---------- ----------
Net Asset Value, Beginning of Period $10.31 $9.82 $9.80 $9.32 $9.92
---------- ---------- ---------- ---------- ----------
Income from Investment Operations
Net investment income 0.44 0.46 0.60 0.66 0.62
Net realized and unrealized gain/(loss)
on investments (b) (0.11) 0.52 0.02 0.48 (0.60)
---------- ---------- ---------- ---------- ----------
Total from Investment Operations 0.33 0.98 0.62 1.14 0.02
---------- ---------- ---------- ---------- ----------
Less Distributions from
---------- ---------- ---------- ---------- ----------
Net Investment Income (0.49) (0.49) (0.60) (0.66) (0.62)
---------- ---------- ---------- ---------- ----------
Net Asset Value, End of period $10.15 $10.31 $9.82 $9.80 $9.32
---------- ---------- ---------- ---------- ----------
Total return (c) 3.25% 10.20% 6.42% 12.55% 0.30%
Net assets, end of period (in millions) $34.5 $29.2 $22.9 $55.6 $47.9
Ratio of expenses to average net assets 0.49% 0.47% 0.39% 0.39% 0.43%
Ratio of net investment income to average net assets 4.26% 4.57% 5.93% 6.79% 6.55%
Portfolio turnover rate (d) 463% 149% 160% 172% 163%
If the Adviser had not reimbursed expenses and the Fund
had not received credits for fees paid indirectly the
ratios would have been:
Ratio of expenses to average net assets 0.50% 0.48% 0.46% 0.49% 0.50%
Ratio of net investment income to average net assets 4.25% 4.56% 5.86% 6.69% 6.47%
The AAL Mutual Funds
Financial Highlights - continued
The AAL Bond Index Fund
Institutional Shares
- ----------------------------------------------------------------------------------------------------------------------------
Year Year Year Year Period
Ended Ended Ended Ended Ended
For a share outstanding throughout each period (a) 4/30/2004 4/30/2003 4/30/2002 4/30/2001 4/30/2000 (f)
- ----------------------------------------------------------------------------------------------------------------------------
---------- ---------- ---------- ---------- ----------
Net Asset Value, Beginning of Period $10.96 $10.48 $10.47 $9.95 $10.00
---------- ---------- ---------- ---------- ----------
Income from Investment Operations
Net investment income 0.39 0.50 0.59 0.69 0.22
Net realized and unrealized gain/(loss)
on investments (b) (0.25) 0.56 0.16 0.52 (0.05)
---------- ---------- ---------- ---------- ----------
Total from Investment Operations 0.14 1.06 0.75 1.21 0.17
---------- ---------- ---------- ---------- ----------
Less Distributions from
Net investment income (0.50) (0.58) (0.64) (0.69) (0.22)
Net realized gain on investments (0.50) -- (0.10) -- --
---------- ---------- ---------- ---------- ----------
Total Distributions (1.00) (0.58) (0.74) (0.69) (0.22)
---------- ---------- ---------- ---------- ----------
Net Asset Value, End of period $10.10 $10.96 $10.48 $10.47 $9.95
---------- ---------- ---------- ---------- ----------
Total return (c) 1.31% 10.35% 7.36% 12.50% 1.72%
Net assets, end of period (in millions) $40.7 $81.0 $58.9 $18.6 $11.1
Ratio of expenses to average net assets (e) 0.43% 0.23% 0.20% 0.20% 0.20%
Ratio of net investment income to average net assets (e) 3.75% 4.65% 5.47% 6.66% 6.85%
Portfolio turnover rate (d) 305% 90% 92% 51% 52%
If the Adviser had not reimbursed expenses and the Fund
had not received credits for fees paid indirectly the
ratios would have been:
Ratio of expenses to average net assets (e) 0.44% 0.31% 0.53% 0.98% 1.04%
Ratio of net investment income to average net assets (e) 3.74% 4.57% 5.14% 5.88% 6.02%
(a) All per share amounts have been rounded to the nearest cent.
(b) The amount shown may not correlate with the change in aggregate
gains and losses of portfolio securities due to the timing of sales
and redemptions of fund shares.
(c) Total investment return assumes dividend reinvestment and does not
reflect any deduction for sales charges. Not annualized for periods
less than one year.
(d) Portfolio turnover rates for the year ended April 30, 2003,
excluded the effect of participation in mortgage dollar roll transactions.
(e) Computed on an annualized basis for periods less than one year.
(f) Since Fund inception, December 31, 1999.
The accompanying notes to the financial statements are an integral part of this schedule.
The AAL Mutual Funds
Financial Highlights - continued
The AAL Money Market Fund
Class A Shares
- ----------------------------------------------------------------------------------------------------------------------------
Year Year Year Year Year
Ended Ended Ended Ended Ended
For a share outstanding throughout each period (a) 4/30/2004 4/30/2003 4/30/2002 4/30/2001 4/30/2000
- ----------------------------------------------------------------------------------------------------------------------------
---------- ---------- ---------- ---------- ----------
Net Asset Value, Beginning of Period $1.00 $1.00 $1.00 $1.00 $1.00
---------- ---------- ---------- ---------- ----------
Income from Investment Operations:
Net investment income 0.003 0.01 0.02 0.05 0.05
Less: distributions from net investment income (0.003) (0.01) (0.02) (0.05) (0.05)
---------- ---------- ---------- ---------- ----------
Net Asset Value, End of period $1.00 $1.00 $1.00 $1.00 $1.00
---------- ---------- ---------- ---------- ----------
Total return (b) 0.32% 0.88% 2.28% 5.70% 4.99%
Net assets, end of period (in millions) $262.2 $349.6 $399.8 $423.9 $348.0
Ratio of expenses to average net assets 0.83% 0.77% 0.72% 0.76% 0.66%
Ratio of net investment income to
average net assets 0.32% 0.89% 2.19% 5.51% 4.90%
Portfolio turnover rate N/A N/A N/A N/A N/A
If the Adviser had not reimbursed expenses and the Fund
had not received credits for fees paid indirectly the
ratios would have been:
Ratio of expenses to average net assets 0.93% 0.92% 0.90% 0.99% 1.02%
Ratio of net investment income/(loss)
to average net assets 0.22% 0.74% 2.01% 5.28% 4.54%
The AAL Money Market Fund
Class B Shares
- ----------------------------------------------------------------------------------------------------------------------------
Year Year Year Year Year
Ended Ended Ended Ended Ended
For a share outstanding throughout each period (a) 4/30/2004 4/30/2003 4/30/2002 4/30/2001 4/30/2000
- ----------------------------------------------------------------------------------------------------------------------------
---------- ---------- ---------- ---------- ----------
Net Asset Value, Beginning of Period $1.00 $1.00 $1.00 $1.00 $1.00
---------- ---------- ---------- ---------- ----------
Income from Investment Operations:
Net investment income 0.001 0.003 0.01 0.04 0.04
Less: distributions from net investment income (0.001) (0.003) (0.01) (0.04) (0.04)
---------- ---------- ---------- ---------- ----------
Net Asset Value, End of period $1.00 $1.00 $1.00 $1.00 $1.00
---------- ---------- ---------- ---------- ----------
Total return (b) 0.07% 0.42% 1.34% 4.67% 3.94%
Net assets, end of period (in millions) $1.8 $2.8 $2.8 $3.3 $2.4
Ratio of expenses to average net assets 1.08% 1.38% 1.52% 1.81% 1.65%
Ratio of net investment income to average net assets 0.07% 0.27% 1.39% 4.45% 3.95%
Portfolio turnover rate N/A N/A N/A N/A N/A
If the Adviser had not reimbursed expenses and the Fund
had not received credits for fees paid indirectly the
ratios would have been:
Ratio of expenses to average net assets 1.84% 1.62% 1.70% 2.04% 2.00%
Ratio of net investment income/(loss)
to average net assets (0.69)% 0.03% 1.21% 4.22% 3.59%
The AAL Money Market Fund
Institutional Class Shares
- ----------------------------------------------------------------------------------------------------------------------------
Year Year Year Year Year
Ended Ended Ended Ended Ended
For a share outstanding throughout each period (a) 4/30/2004 4/30/2003 4/30/2002 4/30/2001 4/30/2000
- ----------------------------------------------------------------------------------------------------------------------------
---------- ---------- ---------- ---------- ----------
Net Asset Value, Beginning of Period $1.00 $1.00 $1.00 $1.00 $1.00
---------- ---------- ---------- ---------- ----------
Income from Investment Operations:
Net investment income 0.01 0.01 0.03 0.06 0.05
Less: distributions from net investment income (0.01) (0.01) (0.03) (0.06) (0.05)
---------- ---------- ---------- ---------- ----------
Net Asset Value, End of period $1.00 $1.00 $1.00 $1.00 $1.00
---------- ---------- ---------- ---------- ----------
Total return (b) 0.59% 1.17% 2.54% 6.07% 5.36%
Net assets, end of period (in millions) $114.6 $91.4 $117.8 $25.3 $12.8
Ratio of expenses to average net assets 0.56% 0.48% 0.46% 0.43% 0.31%
Ratio of net investment income to average net assets 0.59% 1.18% 2.45% 5.86% 5.18%
Portfolio turnover rate N/A N/A N/A N/A N/A
If the Adviser had not reimbursed expenses and the Fund
had not received credits for fees paid indirectly the
ratios would have been:
Ratio of expenses to average net assets 0.56% 0.53% 0.54% 0.56% 0.57%
Ratio of net investment income/(loss)
to average net assets 0.59% 1.13% 2.37% 5.73% 4.92%
(a) All per share amounts have been rounded to the nearest cent.
(b) Total investment return assumes dividend reinvestment and does not
reflect any deduction for sales charges. Not annualized for periods
less than one year.
The accompanying notes to the financial statements are an integral part of this schedule.
Board of Trustees and Officers
The following table provides information about the Trustees and officers of
the Trust. Unless otherwise indicated, the business address of each Trustee
and officer is 625 Fourth Avenue South, Minneapolis, Minnesota 55415.
Additional information about the Trustees is available in the Trust's
Statement of Additional Information, which you may obtain without charge by
calling 1-800-THRIVENT (1-800-847-4836).
Interested Trustees/1/
Position with Principal
Trust and Occupation(s) Number of Portfolios
Name, Address, and Length of During in Fund Complex Other Directorships
and Age Time Served/2/ Past 5 Years Overseen by Trustee/4/ Held by Trustee
- ---------------------------------------------------------------------------------------------------------------------------
Pamela J. Moret President since 2002; Executive Vice President, 26 of the Thrivent Series Lutheran World Relief;
Age 48 Trustee since 2004 Marketing and Products, Fund, Inc.; 20 of Minnesota Public Radio
Thrivent Financial for The AAL Mutual Funds
Lutherans since 2002;
Senior Vice President,
Products, American
Express Financial
Advisors from 2001 to
2002; Vice President,
Variable Assets, American
Express Financial
Advisors from 1996
to 2000
Independent Trustees/3/
Position with Principal
Trust and Occupation(s) Number of Portfolios
Name, Address, and Length of During in Fund Complex Other Directorships
and Age Time Served/2/ Past 5 Years Overseen by Trustee/4/ Held by Trustee
- ---------------------------------------------------------------------------------------------------------------------------
F. Gregory Campbell Trustee since 1992 President, 26 of the Thrivent Series ELCA University and
Age 64 Carthage College Fund, Inc.; 20 of College Employees'
The AAL Mutual Funds Health Benefit Board;
ELCA Risk Management
Board; Trustee, Johnson
Family Funds, Inc., an
investment company
consisting of four
portfolios; Kenosha
Hospital and Medical
Center Board; Prairie
School Board; United
Health Systems Board
Herbert F. Trustee since 2003 Management consultant 26 of the Thrivent Series None
Eggerding, Jr. to several privately Fund, Inc.; 20 of
Age 66 owned companies The AAL Mutual Funds;
11 of The Lutheran
Brotherhood Family
of Funds
Richard L. Gady Trustee since 1987 Retired; previously 26 of the Thrivent Series International
Age 61 Vice President, Public Fund, Inc.; 20 of Agricultural Marketing
Affairs and Chief The AAL Mutual Funds Association Board
Economist, Conagra,
Inc. (agribusiness)
Edward W. Smeds Trustee since 1999 Retired 26 of the Thrivent Series Chairman of Carthage
Age 68 Fund, Inc.; 20 of College Board
The AAL Mutual Funds
Noel K. Estenson Trustee since 2004 Retired; previously 26 of the Thrivent Series None
Age 65 President and Chief Fund, Inc.; 11 of
Executive Officer, The Lutheran
CenexHarvestStates Brotherhood Family
(farm supply and of Funds; 20 of
marketing and The AAL Mutual Funds
food business)
Jodi L. Harpstead Trustee since 2004 On sabbatical. 26 of the Thrivent Series Delta Dental
Age 47 Previously Vice Fund, Inc.; 11 of Plan of Minnesota
President & General The Lutheran
Manager, Cardiac Brotherhood Family
Surgery Technologies of Funds; 20 of
for Medtronic, Inc. The AAL Mutual Funds
(medical products
and technologies
business) since 2002;
President Global
Marketing and U.S. Sales,
Cardiac Rhythm
Management for
Medtronic, Inc. from
2001 to 2002; Vice
President, U.S. Pacing
Sales for Medtronic, Inc.
from 1996 to 2001
Connie M. Levi Trustee since 2004 Retired 26 of the Thrivent Series Norstan, Inc.
Age 64 Fund, Inc., 11 of
The Lutheran
Brotherhood Family
of Funds; 20 of
The AAL Mutual Funds
Officers
Position with
Trust and
Name, Address and Age Length of Service/2/ Principal Occupation During the Past 5 Years
- ---------------------------------------------------------------------------------------------------------------------------
Pamela J. Moret President since 2002 Executive Vice President, Marketing and Products, Thrivent
Age 48 Financial since 2002; Senior Vice President, Products,
American Express Financial Advisors from 2000 to 2001; Vice
President, Variable Assets, American Express Financial Advisors
from 1996 to 2000
James E. Nelson Secretary since 2003 Vice President, Securities Law, Thrivent Financial since 2001;
Age 44 Counsel and head of Insurance Practice Group, Law Division
of ING ReliaStar (formerly ReliaStar Financial Corp.) from
1998 to 2001
Charles D. Gariboldi Treasurer since 1999 Vice President, Investment Accounting, Thrivent Financial
Age 44
Russell W. Swansen Vice President since 2004 Chief Investment Officer, Thrivent Financial, since 2004;
Age 46 Managing Director, Colonnade Advisors, LLC, from 2001 to
2003, President and Chief Investment Officer of PPM
American from 1999 to 2000
Karl D. Anderson Vice President since 2003 Vice President, Investment Product Solutions Management,
Age 42 Thrivent Financial
Frederick P. Johnson Vice President since 2003 Vice President, Investment Operations, Thrivent Financial
Age 41
Marnie L. Loomans-Thuecks Vice President since 2004 Vice President, Customer Interaction Department, Thrivent
4321 North Ballard Road Financial
Appleton, WI
Age 41
Thomas R Mischka Vice President and Vice President of Divisional Support Services,
4321 North Ballard Road Anti-Money Laundering Thrivent Financial
Appleton, WI Officer since 2003
Age 44
David R. Spangler Assistant Vice President Director, of Investment Product Management, Thrivent
Age 37 since 2004 Financial since 2002; Vice President-Product Development,
Wells Fargo Bank-Funds Management Group, from 2000 to
2002; Analyst, MCSI, Inc., 2000; Vice President-Product
Development, US Bank-First American Funds, 1997 to 2000
Brett L. Agnew Assistant Secretary Senior Counsel, Thrivent Financial since 2001; Consultant,
Age 33 since 2001 Principal Financial Group from 1998 to 2001
John C. Bjork Assistant Secretary Senior Counsel, Thrivent Financial
Age 50 since 2003
Marlene J. Nogle Assistant Secretary Senior Counsel, Thrivent Financial
Age 56 since 2003
/1/"Interested person" of the Trust as defined in the Investment Company Act
of 1940 by virtue of a position with Thrivent Financial. Ms. Moret is
considered an interested person because of her principal occupation with
Thrivent Financial, the parent company of the adviser and an affiliate of
the Trust.
/2/Each Trustee serves an indefinite term until his or her successor is duly
elected and qualified. The bylaws of the Trust provide that each Trustee
must retire at the end of the year in which the Trustee attains age 70.
Officers serve at the discretion of the board until their successors are
duly appointed and qualified.
/3/The Trustees and Nominees other than Ms. Moret are not "interested
persons" of the Trust and are referred to as "Independent Trustees."
/4/The "Fund Complex" includes the 11 series of The Lutheran Brotherhood
Family of Funds, the 20 series of The AAL Mutual Funds, and the 26 series of
Thrivent Series Fund, Inc.
Results of Special Shareholder Meetings
The AAL Mutual Funds
Special meetings of the shareholders of each of the series of The AAL Mutual
Funds (the "Trust") were held on March 9, 2004. The matters voted upon at
the meetings and the shares cast for, to withhold, against, or to abstain
are set forth as follows:
Proposal 1 -- To elect a Board of Trustees
To elect Pamela J. Moret as Trustee: For: 471,360,619.587 Withhold: 25,282,126.505
To elect F. Gregory Campbell as Trustee: For: 472,780,339.866 Withhold: 23,862,406.226
To elect Herbert F. Eggerding as Trustee: For: 472,897,366.743 Withhold: 23,745,379.349
To elect Noel K. Estenson as Trustee: For: 472,290,330.509 Withhold: 24,352,415.583
To elect Richard L. Gady as Trustee: For: 472,881,001.618 Withhold: 23,761,744.474
To elect Jodi L. Harpstead as Trustee: For: 472,531,336.299 Withhold: 24,111,409.793
To elect Connie M. Levi as Trustee: For: 472,032,037.324 Withhold: 24,610,708.768
To elect Edward W. Smeds as Trustee: For: 472,508,991.587 Withhold: 24,133,754.505
Proposal 2A -- To amend the fundamental investment restriction on diversification:
The AAL Aggressive Growth Fund For: 4,662,209.828 Against: 111,040.531 Abstain: 316,207.533
The AAL Balanced Fund For: 21,534,052.130 Against: 407,325.504 Abstain: 733,743.279
The AAL Bond Fund For: 27,667,569.249 Against: 1,051,220.973 Abstain: 1,382,064.840
The AAL Bond Index Fund For: 3,655,983.272 Against: 0.000 Abstain: 0.000
The AAL Capital Growth Fund For: 48,574,416.386 Against: 2,233,564.008 Abstain: 3,388,365.296
The AAL Equity Income Fund For: 10,868,259.992 Against: 396,625.648 Abstain: 663,270.016
The AAL High Yield Bond Fund For: 11,915,563.501 Against: 353,552.685 Abstain: 652,736.193
The AAL International Fund For: 9,061,202.717 Against: 368,543.600 Abstain: 721,024.126
The AAL Large Company Index Fund For: 3,299,255.012 Against: 0.000 Abstain: 0.000
The AAL Large Company Index Fund II For: 2,845,738.884 Against: 91,216.859 Abstain: 267,158.267
The AAL Mid Cap Index Fund For: 2,404,912.795 Against: 0.000 Abstain: 0.000
The AAL Mid Cap Index Fund II For: 1,695,733.612 Against: 87,484.981 Abstain: 144,710.259
The AAL Mid Cap Stock Fund For: 28,427,414.861 Against: 1,145,566.977 Abstain: 2,235,005.209
The AAL Money Market Fund For: 228,203,569.760 Against: 6,006,093.600 Abstain: 9,652,985.740
The AAL Municipal Bond Fund For: 31,179,351.288 Against: 1,190,137.537 Abstain: 1,987,418.838
The AAL Small Cap Index Fund II For: 1,700,836.921 Against: 41,416.807 Abstain: 71,418.863
The AAL Small Cap Stock Fund For: 11,290,587.814 Against: 489,844.688 Abstain: 1,128,475.520
The AAL Small Cap Value Fund For: 2,271,958.535 Against: 56,466.110 Abstain: 137,977.616
The AAL Technology Stock Fund For: 6,974,469.832 Against: 397,975.243 Abstain: 427,709.590
The AAL U.S. Government Zero
Coupon Target Fund, Series 2006 For: 66,222.562 Against: 1,705.379 Abstain: 3,384.826
Proposal 2B -- To amend the fundamental investment restriction on lending:
The AAL Aggressive Growth Fund For: 4,634,791.875 Against: 148,040.956 Abstain: 306,625.061
The AAL Balanced Fund For: 21,336,205.110 Against: 568,902.611 Abstain: 770,013.192
The AAL Bond Fund For: 27,417,963.019 Against: 1,322,731.679 Abstain: 1,360,160.364
The AAL Bond Index Fund For: 3,626,536.222 Against: 29,447.050 Abstain: 0.000
The AAL Capital Growth Fund For: 47,965,060.008 Against: 2,840,769.514 Abstain: 3,390,516.168
The AAL Equity Income Fund For: 10,749,428.591 Against: 495,268.857 Abstain: 683,458.208
The AAL High Yield Bond Fund For: 11,819,872.441 Against: 412,954.068 Abstain: 689,025.870
The AAL International Fund For: 8,981,074.529 Against: 452,011.208 Abstain: 717,684.706
The AAL Large Company Index Fund For: 3,299,255.012 Against: 0.000 Abstain: 0.000
The AAL Large Company Index Fund II For: 2,832,843.296 Against: 109,613.677 Abstain: 261,657.037
The AAL Mid Cap Index Fund For: 2,378,522.882 Against: 26,389.913 Abstain: 0.000
The AAL Mid Cap Index Fund II For: 1,654,564.649 Against: 123,137.722 Abstain: 150,226.481
The AAL Mid Cap Stock Fund For: 28,085,383.810 Against: 1,488,058.031 Abstain: 2,234,545.206
The AAL Money Market Fund For: 227,480,689.370 Against: 6,684,076.940 Abstain: 9,697,882.790
The AAL Municipal Bond Fund For: 30,927,828.467 Against: 1,528,278.827 Abstain: 1,900,800.369
The AAL Small Cap Index Fund II For: 1,695,086.212 Against: 48,935.341 Abstain: 69,651.038
The AAL Small Cap Stock Fund For: 11,178,109.981 Against: 627,239.091 Abstain: 1,103,558.950
The AAL Small Cap Value Fund For: 2,252,758.542 Against: 73,789.841 Abstain: 139,853.878
The AAL Technology Stock Fund For: 6,910,971.143 Against: 478,968.909 Abstain: 410,214.613
The AAL U.S. Government Zero
Coupon Target Fund, Series 2006 For: 65,596.013 Against: 2,100.785 Abstain: 3,615.969
Proposal 2C -- To amend the fundamental investment restriction on borrowing and issuing senior securities:
The AAL Aggressive Growth Fund For: 4,612,372.654 Against: 163,334.556 Abstain: 313,750.682
The AAL Balanced Fund For: 21,334,713.633 Against: 580,154.623 Abstain: 760,252.657
The AAL Bond Fund For: 27,398,642.326 Against: 1,325,611.725 Abstain: 1,376,601.011
The AAL Bond Index Fund For: 3,626,536.222 Against: 29,447.050 Abstain: 0.000
The AAL Capital Growth Fund For: 47,804,541.593 Against: 2,959,793.021 Abstain: 3,432,011.076
The AAL Equity Income Fund For: 10,737,680.723 Against: 533,213.822 Abstain: 657,261.111
The AAL High Yield Bond Fund For: 11,847,776.766 Against: 399,469.601 Abstain: 674,606.012
The AAL International Fund For: 8,963,145.599 Against: 456,404.229 Abstain: 731,220.615
The AAL Large Company Index Fund For: 3,299,255.012 Against: 0.000 Abstain: 0.000
The AAL Large Company Index Fund II For: 2,821,870.143 Against: 119,951.717 Abstain: 262,292.150
The AAL Mid Cap Index Fund For: 2,378,522.882 Against: 26,389.913 Abstain: 0.000
The AAL Mid Cap Index Fund II For: 1,640,149.866 Against: 142,329.072 Abstain: 145,449.914
The AAL Mid Cap Stock Fund For: 27,997,105.650 Against: 1,550,026.766 Abstain: 2,260,854.631
The AAL Money Market Fund For: 226,971,175.830 Against: 7,263,412.060 Abstain: 9,628,061.210
The AAL Municipal Bond Fund For: 30,981,571.564 Against: 1,359,602.360 Abstain: 2,015,733.739
The AAL Small Cap Index Fund II For: 1,693,497.873 Against: 48,451.098 Abstain: 71,723.620
The AAL Small Cap Stock Fund For: 11,147,646.594 Against: 630,105.731 Abstain: 1,131,155.697
The AAL Small Cap Value Fund For: 2,242,561.776 Against: 81,441.980 Abstain: 142,398.505
The AAL Technology Stock Fund For: 6,930,428.172 Against: 501,265.683 Abstain: 368,460.810
The AAL U.S. Government Zero
Coupon Target Fund, Series 2006 For: 64,566.206 Against: 3,130.592 Abstain: 3,615.969
Proposal 2D -- To amend the fundamental investment restriction on the purchase or sale of real estate:
The AAL Aggressive Growth Fund For: 4,656,867.277 Against: 126,270.754 Abstain: 306,319.861
The AAL Balanced Fund For: 21,407,051.853 Against: 518,719.748 Abstain: 749,349.312
The AAL Bond Fund For: 27,537,861.001 Against: 1,183,040.640 Abstain: 1,379,953.421
The AAL Bond Index Fund For: 3,626,536.222 Against: 29,447.050 Abstain: 0.000
The AAL Capital Growth Fund For: 48,233,055.326 Against: 2,620,817.965 Abstain: 3,342,472.399
The AAL Equity Income Fund For: 10,812,914.805 Against: 450,284.730 Abstain: 664,956.121
The AAL High Yield Bond Fund For: 11,906,752.494 Against: 359,357.014 Abstain: 655,742.871
The AAL International Fund For: 9,036,763.054 Against: 394,442.211 Abstain: 719,565.178
The AAL Large Company Index Fund For: 3,299,255.012 Against: 0.000 Abstain: 0.000
The AAL Large Company Index Fund II For: 2,835,429.593 Against: 106,178.743 Abstain: 262,505.674
The AAL Mid Cap Index Fund For: 2,378,522.882 Against: 26,389.913 Abstain: 0.000
The AAL Mid Cap Index Fund II For: 1,664,597.078 Against: 112,989.824 Abstain: 150,341.950
The AAL Mid Cap Stock Fund For: 28,264,311.866 Against: 1,322,836.739 Abstain: 2,220,838.442
The AAL Money Market Fund For: 228,409,733.570 Against: 5,766,630.220 Abstain: 9,686,285.310
The AAL Municipal Bond Fund For: 30,868,870.888 Against: 1,480,926.929 Abstain: 2,007,109.846
The AAL Small Cap Index Fund II For: 1,699,888.908 Against: 45,777.439 Abstain: 68,006.244
The AAL Small Cap Stock Fund For: 11,226,598.606 Against: 587,192.726 Abstain: 1,095,116.690
The AAL Small Cap Value Fund For: 2,274,985.819 Against: 54,323.288 Abstain: 137,093.154
The AAL Technology Stock Fund For: 7,008,054.529 Against: 437,445.288 Abstain: 354,654.848
The AAL U.S. Government Zero
Coupon Target Fund, Series 2006 For: 65,596.013 Against: 2,100.785 Abstain: 3,615.969
Proposal 2E -- To amend the fundamental investment restriction on the purchase or sale of commodities:
The AAL Aggressive Growth Fund For: 4,651,152.361 Against: 125,233.391 Abstain: 313,072.140
The AAL Balanced Fund For: 21,370,740.701 Against: 598,453.910 Abstain: 705,926.302
The AAL Bond Fund For: 27,352,268.465 Against: 1,360,488.206 Abstain: 1,388,190.338
The AAL Bond Index Fund For: 3,655,983.272 Against: 0.000 Abstain: 0.000
The AAL Capital Growth Fund For: 47,916,115.845 Against: 2,913,303.500 Abstain: 3,366,926.345
The AAL Equity Income Fund For: 10,749,918.057 Against: 505,692.937 Abstain: 672,544.662
The AAL High Yield Bond Fund For: 11,794,715.964 Against: 460,666.089 Abstain: 666,470.326
The AAL International Fund For: 8,987,825.244 Against: 461,798.903 Abstain: 701,146.296
The AAL Large Company Index Fund For: 3,299,255.012 Against: 0.000 Abstain: 0.000
The AAL Large Company Index Fund II For: 2,843,154.852 Against: 93,963.799 Abstain: 266,995.359
The AAL Mid Cap Index Fund For: 2,404,912.795 Against: 0.000 Abstain: 0.000
The AAL Mid Cap Index Fund II For: 1,669,180.795 Against: 111,042.761 Abstain: 147,705.296
The AAL Mid Cap Stock Fund For: 28,046,119.941 Against: 1,545,439.862 Abstain: 2,216,427.244
The AAL Money Market Fund For: 227,298,091.560 Against: 6,944,562.190 Abstain: 9,619,995.350
The AAL Municipal Bond Fund For: 30,709,826.042 Against: 1,646,545.778 Abstain: 2,000,535.843
The AAL Small Cap Index Fund II For: 1,697,766.145 Against: 47,343.378 Abstain: 68,563.068
The AAL Small Cap Stock Fund For: 11,177,591.217 Against: 619,778.202 Abstain: 1,111,538.603
The AAL Small Cap Value Fund For: 2,271,654.413 Against: 56,609.209 Abstain: 138,138.639
The AAL Technology Stock Fund For: 6,990,979.284 Against: 449,001.752 Abstain: 360,173.629
The AAL U.S. Government Zero
Coupon Target Fund, Series 2006 For: 65,998.022 Against: 1,698.776 Abstain: 3,615.969
Proposal 2F -- To amend the fundamental investment restriction on the concentration of assets:
The AAL Aggressive Growth Fund For: 4,641,017.992 Against: 144,799.521 Abstain: 303,640.379
The AAL Balanced Fund For: 21,489,587.131 Against: 473,960.319 Abstain: 711,573.463
The AAL Bond Fund For: 27,672,835.370 Against: 1,120,488.206 Abstain: 1,307,531.486
The AAL Bond Index Fund For: 3,655,983.272 Against: 0.000 Abstain: 0.000
The AAL Capital Growth Fund For: 48,363,472.596 Against: 2,453,738.064 Abstain: 3,379,135.030
The AAL Equity Income Fund For: 10,849,524.217 Against: 412,612.886 Abstain: 666,018.553
The AAL High Yield Bond Fund For: 11,906,980.186 Against: 331,789.777 Abstain: 683,082.416
The AAL International Fund For: 9,020,956.666 Against: 397,321.122 Abstain: 732,492.655
The AAL Large Company Index Fund For: 3,299,255.012 Against: 0.000 Abstain: 0.000
The AAL Large Company Index Fund II For: 2,835,534.509 Against: 105,002.949 Abstain: 263,576.552
The AAL Mid Cap Index Fund For: 2,404,912.795 Against: 0.000 Abstain: 0.000
The AAL Mid Cap Index Fund II For: 1,671,053.404 Against: 105,484.862 Abstain: 151,390.586
The AAL Mid Cap Stock Fund For: 28,284,998.792 Against: 1,307,608.661 Abstain: 2,215,379.594
The AAL Money Market Fund For: 227,901,057.810 Against: 6,355,838.300 Abstain: 9,605,752.990
The AAL Municipal Bond Fund For: 31,116,412.701 Against: 1,388,488.763 Abstain: 1,852,006.199
The AAL Small Cap Index Fund II For: 1,706,266.281 Against: 39,325.545 Abstain: 68,080.765
The AAL Small Cap Stock Fund For: 11,232,270.225 Against: 582,031.658 Abstain: 1,094,606.139
The AAL Small Cap Value Fund For: 2,270,983.917 Against: 56,585.273 Abstain: 138,833.071
The AAL Technology Stock Fund For: 7,036,422.743 Against: 411,859.760 Abstain: 351,872.162
The AAL U.S. Government Zero
Coupon Target Fund, Series 2006 For: 65,553.686 Against: 2,143.112 Abstain: 3,615.969
Proposal 2G -- To amend the fundamental investment restriction on underwriting the securities of other issuers:
The AAL Aggressive Growth Fund For: 4,620,773.881 Against: 156,593.242 Abstain: 312,090.769
The AAL Balanced Fund For: 21,338,092.241 Against: 616,489.535 Abstain: 720,539.137
The AAL Bond Fund For: 27,481,515.709 Against: 1,242,071.397 Abstain: 1,377,267.956
The AAL Bond Index Fund For: 3,655,983.272 Against: 0.000 Abstain: 0.000
The AAL Capital Growth Fund For: 47,914,355.576 Against: 2,849,073.476 Abstain: 3,432,916.638
The AAL Equity Income Fund For: 10,761,798.713 Against: 506,656.561 Abstain: 659,700.382
The AAL High Yield Bond Fund For: 11,845,439.897 Against: 394,464.144 Abstain: 681,948.338
The AAL International Fund For: 8,973,765.459 Against: 449,053.282 Abstain: 727,951.702
The AAL Large Company Index Fund For: 3,299,255.012 Against: 0.000 Abstain: 0.000
The AAL Large Company Index Fund II For: 2,820,405.688 Against: 118,941.478 Abstain: 264,766.844
The AAL Mid Cap Index Fund For: 2,404,912.795 Against: 0.000 Abstain: 0.000
The AAL Mid Cap Index Fund II For: 1,650,482.598 Against: 126,682.947 Abstain: 150,763.307
The AAL Mid Cap Stock Fund For: 28,039,695.346 Against: 1,522,030.373 Abstain: 2,246,261.328
The AAL Money Market Fund For: 227,412,906.610 Against: 6,659,079.870 Abstain: 9,790,662.620
The AAL Municipal Bond Fund For: 30,832,115.834 Against: 1,598,147.014 Abstain: 1,926,644.815
The AAL Small Cap Index Fund II For: 1,701,138.170 Against: 47,101.537 Abstain: 65,432.884
The AAL Small Cap Stock Fund For: 11,182,662.233 Against: 612,425.845 Abstain: 1,113,819.944
The AAL Small Cap Value Fund For: 2,259,573.690 Against: 65,020.169 Abstain: 141,808.402
The AAL Technology Stock Fund For: 6,968,232.552 Against: 477,165.262 Abstain: 354,756.851
The AAL U.S. Government Zero
Coupon Target Fund, Series 2006 For: 63,690.740 Against: 3,604.049 Abstain: 4,017.978
Proposal 2H -- To eliminate the fundamental investment restriction on margin transactions:
The AAL Aggressive Growth Fund For: 4,603,311.878 Against: 178,039.002 Abstain: 308,107.012
The AAL Balanced Fund For: 21,226,476.314 Against: 715,738.511 Abstain: 732,906.088
The AAL Bond Fund For: 27,175,033.935 Against: 1,542,432.742 Abstain: 1,383,388.385
The AAL Bond Index Fund For: 3,655,983.272 Against: 0.000 Abstain: 0.000
The AAL Capital Growth Fund For: 47,315,619.459 Against: 3,548,115.637 Abstain: 3,332,610.594
The AAL Equity Income Fund For: 10,657,039.417 Against: 627,858.654 Abstain: 643,257.585
The AAL High Yield Bond Fund For: 11,740,143.217 Against: 498,814.585 Abstain: 682,894.577
The AAL International Fund For: 8,897,053.231 Against: 545,796.855 Abstain: 707,920.357
The AAL Large Company Index Fund For: 3,299,255.012 Against: 0.000 Abstain: 0.000
The AAL Large Company Index Fund II For: 2,810,762.640 Against: 135,983.409 Abstain: 257,367.961
The AAL Mid Cap Index Fund For: 2,404,912.795 Against: 0.000 Abstain: 0.000
The AAL Mid Cap Index Fund II For: 1,660,846.042 Against: 125,397.389 Abstain: 141,685.421
The AAL Mid Cap Stock Fund For: 27,796,740.022 Against: 1,813,734.274 Abstain: 2,197,512.751
The AAL Money Market Fund For: 225,481,299.580 Against: 8,607,264.210 Abstain: 9,774,085.310
The AAL Municipal Bond Fund For: 30,531,799.635 Against: 1,851,636.479 Abstain: 1,973,471.549
The AAL Small Cap Index Fund II For: 1,691,087.501 Against: 52,472.816 Abstain: 70,112.274
The AAL Small Cap Stock Fund For: 11,063,921.560 Against: 744,239.705 Abstain: 1,100,746.757
The AAL Small Cap Value Fund For: 2,236,472.530 Against: 92,344.756 Abstain: 137,584.975
The AAL Technology Stock Fund For: 6,919,911.194 Against: 537,939.139 Abstain: 342,304.332
The AAL U.S. Government Zero
Coupon Target Fund, Series 2006 For: 63,690.740 Against: 3,604.049 Abstain: 4,017.978
Proposal 2I -- To eliminate the fundamental investment restriction on short sales:
The AAL Aggressive Growth Fund For: 4,609,549.678 Against: 162,601.927 Abstain: 317,306.287
The AAL Balanced Fund For: 21,204,287.800 Against: 728,264.477 Abstain: 742,568.636
The AAL Bond Fund For: 27,261,321.971 Against: 1,471,467.752 Abstain: 1,368,065.339
The AAL Bond Index Fund For: 3,655,983.272 Against: 0.000 Abstain: 0.000
The AAL Capital Growth Fund For: 47,466,876.600 Against: 3,447,127.542 Abstain: 3,282,341.548
The AAL Equity Income Fund For: 10,686,819.891 Against: 606,696.309 Abstain: 634,639.456
The AAL High Yield Bond Fund For: 11,758,818.202 Against: 464,887.215 Abstain: 698,146.962
The AAL International Fund For: 8,914,837.040 Against: 519,662.415 Abstain: 716,270.988
The AAL Large Company Index Fund For: 3,299,255.012 Against: 0.000 Abstain: 0.000
The AAL Large Company Index Fund II For: 2,822,883.763 Against: 121,140.513 Abstain: 260,089.734
The AAL Mid Cap Index Fund For: 2,404,912.795 Against: 0.000 Abstain: 0.000
The AAL Mid Cap Index Fund II For: 1,667,825.223 Against: 114,423.881 Abstain: 145,679.748
The AAL Mid Cap Stock Fund For: 27,878,309.052 Against: 1,748,703.958 Abstain: 2,180,974.037
The AAL Money Market Fund For: 225,793,960.440 Against: 8,398,700.550 Abstain: 9,669,988.110
The AAL Municipal Bond Fund For: 30,646,114.140 Against: 1,845,573.576 Abstain: 1,865,219.947
The AAL Small Cap Index Fund II For: 1,691,033.984 Against: 53,036.029 Abstain: 69,602.578
The AAL Small Cap Stock Fund For: 11,086,156.679 Against: 723,313.472 Abstain: 1,099,437.871
The AAL Small Cap Value Fund For: 2,243,904.545 Against: 81,005.607 Abstain: 141,492.109
The AAL Technology Stock Fund For: 7,124,013.298 Against: 326,580.715 Abstain: 349,560.652
The AAL U.S. Government Zero
Coupon Target Fund, Series 2006 For: 65,517.962 Against: 2,178.836 Abstain: 3,615.969
Proposal 2J -- To eliminate the fundamental investment restriction on the pledge of assets:
The AAL Aggressive Growth Fund For: 4,611,425.848 Against: 171,141.111 Abstain: 306,890.933
The AAL Balanced Fund For: 21,231,354.120 Against: 702,039.173 Abstain: 741,727.620
The AAL Bond Fund For: 27,381,382.998 Against: 1,327,209.026 Abstain: 1,392,263.038
The AAL Bond Index Fund For: 3,655,983.272 Against: 0.000 Abstain: 0.000
The AAL Capital Growth Fund For: 47,591,603.114 Against: 3,120,216.985 Abstain: 3,484,525.591
The AAL Equity Income Fund For: 10,706,761.261 Against: 564,814.098 Abstain: 656,580.297
The AAL High Yield Bond Fund For: 11,799,463.168 Against: 420,705.395 Abstain: 701,683.816
The AAL International Fund For: 8,925,738.459 Against: 482,546.803 Abstain: 742,485.181
The AAL Large Company Index Fund For: 3,299,255.012 Against: 0.000 Abstain: 0.000
The AAL Large Company Index Fund II For: 2,805,282.713 Against: 128,334.038 Abstain: 270,497.259
The AAL Mid Cap Index Fund For: 2,404,912.795 Against: 0.000 Abstain: 0.000
The AAL Mid Cap Index Fund II For: 1,647,975.562 Against: 130,032.397 Abstain: 149,920.893
The AAL Mid Cap Stock Fund For: 27,908,693.108 Against: 1,606,539.556 Abstain: 2,292,754.383
The AAL Money Market Fund For: 226,081,603.110 Against: 7,798,766.450 Abstain: 9,982,279.540
The AAL Municipal Bond Fund For: 30,588,929.411 Against: 1,766,714.803 Abstain: 2,001,263.449
The AAL Small Cap Index Fund II For: 1,691,413.945 Against: 50,476.869 Abstain: 71,781.777
The AAL Small Cap Stock Fund For: 11,120,741.207 Against: 674,772.924 Abstain: 1,113,393.891
The AAL Small Cap Value Fund For: 2,232,394.060 Against: 91,258.470 Abstain: 142,749.731
The AAL Technology Stock Fund For: 6,943,316.485 Against: 497,863.601 Abstain: 358,974.579
The AAL U.S. Government Zero
Coupon Target Fund, Series 2006 For: 64,968.215 Against: 2,728.583 Abstain: 3,615.969
Proposal 2K -- To eliminate the fundamental investment restriction on oil, gas, or mineral investments:
The AAL Aggressive Growth Fund For: 4,649,272.642 Against: 137,114.271 Abstain: 303,070.979
The AAL Balanced Fund For: 21,364,259.353 Against: 582,985.043 Abstain: 727,876.517
The AAL Bond Fund For: 27,621,486.171 Against: 1,191,229.589 Abstain: 1,288,139.302
The AAL Bond Index Fund For: 3,626,536.222 Against: 29,447.050 Abstain: 0.000
The AAL Capital Growth Fund For: 48,461,366.234 Against: 2,530,619.507 Abstain: 3,204,359.949
The AAL Equity Income Fund For: 10,824,737.872 Against: 474,113.144 Abstain: 629,304.640
The AAL High Yield Bond Fund For: 11,908,522.930 Against: 363,880.199 Abstain: 649,449.250
The AAL International Fund For: 9,050,534.741 Against: 395,721.408 Abstain: 704,514.294
The AAL Large Company Index Fund For: 3,299,255.012 Against: 0.000 Abstain: 0.000
The AAL Large Company Index Fund II For: 2,859,735.049 Against: 84,449.407 Abstain: 259,929.554
The AAL Mid Cap Index Fund For: 2,378,522.882 Against: 26,389.913 Abstain: 0.000
The AAL Mid Cap Index Fund II For: 1,669,418.457 Against: 113,867.710 Abstain: 144,642.685
The AAL Mid Cap Stock Fund For: 28,434,210.555 Against: 1,240,008.003 Abstain: 2,133,768.489
The AAL Money Market Fund For: 228,116,881.670 Against: 6,269,502.060 Abstain: 9,476,265.370
The AAL Municipal Bond Fund For: 31,206,759.080 Against: 1,283,384.810 Abstain: 1,866,763.773
The AAL Small Cap Index Fund II For: 1,705,339.451 Against: 35,827.223 Abstain: 72,505.917
The AAL Small Cap Stock Fund For: 11,279,044.072 Against: 540,856.441 Abstain: 1,089,007.509
The AAL Small Cap Value Fund For: 2,273,145.453 Against: 55,493.325 Abstain: 137,763.483
The AAL Technology Stock Fund For: 7,033,715.398 Against: 418,609.123 Abstain: 347,830.144
The AAL U.S. Government Zero
Coupon Target Fund, Series 2006 For: 65,998.022 Against: 1,698.776 Abstain: 3,615.969
Proposal 2L -- To eliminate the fundamental investment restriction on restricted securities:
The AAL Aggressive Growth Fund For: 4,609,168.106 Against: 167,799.016 Abstain: 312,490.770
The AAL Balanced Fund For: 21,303,292.427 Against: 649,540.029 Abstain: 722,288.457
The AAL Bond Fund For: 27,355,702.716 Against: 1,347,394.649 Abstain: 1,397,757.697
The AAL Bond Index Fund For: 3,655,983.272 Against: 0.000 Abstain: 0.000
The AAL Capital Growth Fund For: 47,640,416.707 Against: 3,141,353.282 Abstain: 3,414,575.701
The AAL Equity Income Fund For: 10,733,173.729 Against: 536,191.438 Abstain: 658,790.489
The AAL High Yield Bond Fund For: 11,839,067.962 Against: 422,248.669 Abstain: 660,535.748
The AAL International Fund For: 8,920,736.652 Against: 488,051.787 Abstain: 741,982.004
The AAL Large Company Index Fund For: 3,299,255.012 Against: 0.000 Abstain: 0.000
The AAL Large Company Index Fund II For: 2,824,394.599 Against: 111,776.705 Abstain: 267,942.706
The AAL Mid Cap Index Fund For: 2,404,912.795 Against: 0.000 Abstain: 0.000
The AAL Mid Cap Index Fund II For: 1,665,361.837 Against: 116,110.633 Abstain: 146,456.382
The AAL Mid Cap Stock Fund For: 27,918,626.808 Against: 1,624,336.972 Abstain: 2,265,023.267
The AAL Money Market Fund For: 226,534,193.410 Against: 7,478,956.290 Abstain: 9,849,499.400
The AAL Municipal Bond Fund For: 30,677,179.292 Against: 1,666,016.127 Abstain: 2,013,712.244
The AAL Small Cap Index Fund II For: 1,692,502.845 Against: 48,252.367 Abstain: 72,917.379
The AAL Small Cap Stock Fund For: 11,132,122.160 Against: 662,470.379 Abstain: 1,114,315.483
The AAL Small Cap Value Fund For: 2,251,612.787 Against: 76,481.278 Abstain: 138,308.196
The AAL Technology Stock Fund For: 6,954,049.122 Against: 486,329.233 Abstain: 359,776.310
The AAL U.S. Government Zero
Coupon Target Fund, Series 2006 For: 63,295.334 Against: 4,401.464 Abstain: 3,615.969
Proposal 2M -- To eliminate the fundamental investment restriction on unseasoned issuers:
The AAL Aggressive Growth Fund For: 4,590,698.274 Against: 180,865.013 Abstain: 317,894.605
The AAL Balanced Fund For: 21,211,079.407 Against: 732,376.916 Abstain: 731,664.590
The AAL Bond Fund For: 27,233,166.022 Against: 1,473,872.499 Abstain: 1,393,816.541
The AAL Bond Index Fund For: 3,655,983.272 Against: 0.000 Abstain: 0.000
The AAL Capital Growth Fund For: 47,160,155.694 Against: 3,521,117.172 Abstain: 3,515,072.824
The AAL Equity Income Fund For: 10,638,179.791 Against: 621,713.314 Abstain: 668,262.551
The AAL High Yield Bond Fund For: 11,743,948.816 Against: 465,407.219 Abstain: 712,496.344
The AAL International Fund For: 8,853,436.214 Against: 554,075.842 Abstain: 743,258.387
The AAL Large Company Index Fund For: 3,299,255.012 Against: 0.000 Abstain: 0.000
The AAL Large Company Index Fund II For: 2,811,905.846 Against: 127,863.537 Abstain: 264,344.627
The AAL Mid Cap Index Fund For: 2,404,912.795 Against: 0.000 Abstain: 0.000
The AAL Mid Cap Index Fund II For: 1,634,932.764 Against: 149,120.454 Abstain: 143,875.634
The AAL Mid Cap Stock Fund For: 27,749,625.353 Against: 1,739,566.388 Abstain: 2,318,795.306
The AAL Money Market Fund For: 225,917,905.660 Against: 8,129,058.760 Abstain: 9,815,684.680
The AAL Municipal Bond Fund For: 30,524,218.790 Against: 1,790,170.027 Abstain: 2,042,518.846
The AAL Small Cap Index Fund II For: 1,692,546.382 Against: 50,564.103 Abstain: 70,562.106
The AAL Small Cap Stock Fund For: 11,057,694.935 Against: 734,272.816 Abstain: 1,116,940.271
The AAL Small Cap Value Fund For: 2,236,504.831 Against: 86,489.135 Abstain: 143,408.295
The AAL Technology Stock Fund For: 6,932,034.049 Against: 497,792.412 Abstain: 370,328.204
The AAL U.S. Government Zero
Coupon Target Fund, Series 2006 For: 63,295.334 Against: 4,401.464 Abstain: 3,615.969
Proposal 2N -- To eliminate the fundamental investment restriction on investments in other investment companies:
The AAL Aggressive Growth Fund For: 4,634,870.180 Against: 146,397.468 Abstain: 308,190.244
The AAL Balanced Fund For: 21,315,158.789 Against: 658,167.460 Abstain: 701,794.664
The AAL Bond Fund For: 27,441,390.825 Against: 1,358,820.350 Abstain: 1,300,643.887
The AAL Bond Index Fund For: 3,655,983.272 Against: 0.000 Abstain: 0.000
The AAL Capital Growth Fund For: 47,832,273.847 Against: 3,078,121.726 Abstain: 3,285,950.117
The AAL Equity Income Fund For: 10,747,980.855 Against: 527,051.553 Abstain: 653,123.248
The AAL High Yield Bond Fund For: 11,836,384.504 Against: 448,524.451 Abstain: 636,943.424
The AAL International Fund For: 8,954,669.865 Against: 496,508.610 Abstain: 699,591.968
The AAL Large Company Index Fund For: 3,299,255.012 Against: 0.000 Abstain: 0.000
The AAL Large Company Index Fund II For: 2,839,864.973 Against: 107,246.724 Abstain: 257,002.313
The AAL Mid Cap Index Fund For: 2,404,912.795 Against: 0.000 Abstain: 0.000
The AAL Mid Cap Index Fund II For: 1,655,288.658 Against: 129,856.251 Abstain: 142,783.943
The AAL Mid Cap Stock Fund For: 28,023,943.412 Against: 1,599,425.773 Abstain: 2,184,617.862
The AAL Money Market Fund For: 226,579,674.790 Against: 7,941,646.620 Abstain: 9,341,327.690
The AAL Municipal Bond Fund For: 30,731,282.707 Against: 1,762,021.356 Abstain: 1,863,603.600
The AAL Small Cap Index Fund II For: 1,702,341.919 Against: 39,899.398 Abstain: 71,431.274
The AAL Small Cap Stock Fund For: 11,160,083.564 Against: 648,078.344 Abstain: 1,100,746.114
The AAL Small Cap Value Fund For: 2,257,073.357 Against: 69,582.134 Abstain: 139,746.770
The AAL Technology Stock Fund For: 6,980,383.315 Against: 465,662.370 Abstain: 354,108.980
The AAL U.S. Government Zero
Coupon Target Fund, Series 2006 For: 64,170.800 Against: 3,525.998 Abstain: 3,615.969
Proposal 2O -- To eliminate the fundamental investment restriction on control securities:
The AAL Aggressive Growth Fund For: 4,609,561.062 Against: 161,855.832 Abstain: 318,040.998
The AAL Balanced Fund For: 21,298,000.062 Against: 638,493.994 Abstain: 738,626.857
The AAL Bond Fund For: 27,419,093.420 Against: 1,316,753.370 Abstain: 1,365,008.272
The AAL Bond Index Fund For: 3,655,983.272 Against: 0.000 Abstain: 0.000
The AAL Capital Growth Fund For: 47,735,174.676 Against: 2,984,035.305 Abstain: 3,477,135.709
The AAL Equity Income Fund For: 10,735,993.534 Against: 526,865.766 Abstain: 665,296.356
The AAL High Yield Bond Fund For: 11,832,130.803 Against: 429,653.464 Abstain: 660,068.112
The AAL International Fund For: 8,951,089.046 Against: 473,431.148 Abstain: 726,250.249
The AAL Large Company Index Fund For: 3,299,255.012 Against: 0.000 Abstain: 0.000
The AAL Large Company Index Fund II For: 2,820,881.414 Against: 118,303.234 Abstain: 264,929.362
The AAL Mid Cap Index Fund For: 2,404,912.795 Against: 0.000 Abstain: 0.000
The AAL Mid Cap Index Fund II For: 1,654,937.149 Against: 128,501.371 Abstain: 144,490.332
The AAL Mid Cap Stock Fund For: 27,914,416.862 Against: 1,608,603.193 Abstain: 2,284,966.992
The AAL Money Market Fund For: 226,595,383.050 Against: 7,542,168.620 Abstain: 9,725,097.430
The AAL Municipal Bond Fund For: 30,785,350.789 Against: 1,654,874.329 Abstain: 1,916,682.545
The AAL Small Cap Index Fund II For: 1,693,524.000 Against: 39,535.690 Abstain: 80,612.901
The AAL Small Cap Stock Fund For: 11,146,585.134 Against: 639,690.836 Abstain: 1,122,632.052
The AAL Small Cap Value Fund For: 2,246,450.658 Against: 79,850.635 Abstain: 140,100.968
The AAL Technology Stock Fund For: 6,954,749.016 Against: 469,272.532 Abstain: 376,133.117
The AAL U.S. Government Zero
Coupon Target Fund, Series 2006 For: 63,295.334 Against: 3,999.455 Abstain: 4,017.978
Proposal 3A -- To amend the Declaration of Trust regarding the voting requirements for a reorganization of the Trust or
a series of the Trust:
For: 457,132,177.569 Against: 15,857,853.102 Abstain: 23,652,715.421
Proposal 3B -- To amend the Declaration of Trust regarding the requirements for a liquidation of the Trust or a class or
series of the Trust:
For: 449,807,620.028 Against: 23,813,745.170 Abstain: 23,021,380.894
Proposal 3C -- To amend the Declaration of Trust to eliminate the restriction on involuntary redemptions
of small accounts:
For: 453,648,066.605 Against: 19,713,386.629 Abstain: 23,281,292.858
Proposal 4 -- To amend the investment objective for The AAL Equity Income Fund:
For: 10,891,108.869 Against: 392,964.721 Abstain: 644,082.066
Proposal 5 -- To authorize Thrivent Investment Management Inc., upon approval of the Board of Trustees, to enter into
and amend subadvisory agreements without shareholder approval:
The AAL Aggressive Growth Fund For: 4,517,658.923 Against: 269,255.868 Abstain: 302,543.101
The AAL Balanced Fund For: 21,134,622.887 Against: 830,858.119 Abstain: 709,639.907
The AAL Bond Fund For: 26,965,422.507 Against: 1,864,266.557 Abstain: 1,271,165.998
The AAL Bond Index Fund For: 3,626,536.222 Against: 29,447.050 Abstain: 0.000
The AAL Capital Growth Fund For: 47,187,705.165 Against: 3,853,242.255 Abstain: 3,155,398.270
The AAL Equity Income Fund For: 10,626,410.658 Against: 685,726.018 Abstain: 616,018.980
The AAL High Yield Bond Fund For: 11,665,738.584 Against: 646,184.772 Abstain: 609,929.023
The AAL International Fund For: 8,812,507.603 Against: 623,718.760 Abstain: 714,544.080
The AAL Large Company Index Fund For: 3,299,255.012 Against: 0.000 Abstain: 0.000
The AAL Large Company Index Fund II For: 2,798,935.464 Against: 151,182.058 Abstain: 253,996.488
The AAL Mid Cap Index Fund For: 2,378,522.882 Against: 26,389.913 Abstain: 0.000
The AAL Mid Cap Index Fund II For: 1,650,274.713 Against: 139,491.620 Abstain: 138,162.519
The AAL Mid Cap Stock Fund For: 27,695,399.028 Against: 1,948,421.508 Abstain: 2,164,166.511
The AAL Money Market Fund For: 224,317,642.260 Against: 9,954,900.560 Abstain: 9,590,106.280
The AAL Municipal Bond Fund For: 30,453,978.792 Against: 2,091,453.306 Abstain: 1,811,475.565
The AAL Small Cap Index Fund II For: 1,686,897.446 Against: 60,887.962 Abstain: 65,887.183
The AAL Small Cap Stock Fund For: 10,993,865.440 Against: 818,314.358 Abstain: 1,096,728.224
The AAL Small Cap Value Fund For: 2,239,770.744 Against: 86,375.899 Abstain: 140,255.618
The AAL Technology Stock Fund For: 6,861,823.816 Against: 578,140.709 Abstain: 360,190.140
The AAL U.S. Government Zero
Coupon Target Fund, Series 2006 For: 64,170.800 Against: 3,525.998 Abstain: 3,615.969
We're Listening to You!
In response to shareholder concerns regarding
multiple mailings, we are sending one Annual
Report for The AAL Mutual Funds to each household.
This consolidation helps reduce printing and
postage costs, thereby saving shareholders' money.
If you wish to receive an additional copy of this
report, call us toll free at 800-847-4836.
[GRAPHIC OMITTED: THRIVENT INVESTMENT MANAGEMENT TRADEMARK LOGO]
625 Fourth Ave. S., Minneapolis, MN 55415-1665
www.thrivent.com [Bullet] e-mail: mail@thrivent.com
[Bullet] 800-THRIVENT (800-847-4836)
Item 2. Code of Ethics
As of the end of the period covered by this report, registrant has adopted a code of ethics (as
defined in Item 2 of Form N-CSR, applicable to registrant's Principal Executive Officer, Principal
Financial Officer, and Principal Accounting Officer. No substantive amendments were approved or
waivers were granted to such code of ethics during the period covered by this report. A copy of this
code of ethics is filed as an exhibit to this Form N-CSR.
Item 3. Audit Committee Financial Expert
Registrant's Board of Trustees has determined that Herbert F. Eggerding, Jr., an independent trustee,
is the Audit Committee Financial Expert.
Item 4. Principal Accountant Fees and Services
(a) Audit Fees
The aggregate fees billed by registrant's independent public accountants, PricewaterhouseCoopers
LLP ("PwC") for each of the last two fiscal years for professional services rendered in connection
with the audit of registrant's annual financial statements or services that are normally provided
by the accountant in connection with statutory and regulatory filings or engagements were $246,050
for the year ended April 30, 2003, and $220,800 for the year ended April 30, 2004.
(b) Audit-Related Fees
The aggregate fees PwC billed to registrant for each of the last two fiscal years for assurance
and other services which are reasonably related to the performance of registrant's audit and are
not reported under Item 4(a) were $0 and $0 for the years ended April 30, 2003 and April 30, 2004,
respectively. The aggregate fees PwC billed to registrant's investment adviser and any entity
controlling, controlled by, or under common control with registrant's investment adviser for assurance
and other services directly related to the operations and financial reporting of registrant were $0
for the year ended April 30, 2003, and $0 for the year ended April 30, 2004.
(c) Tax Fees
The aggregate tax fees PwC billed to registrant for each of the last two fiscal years for tax
compliance, tax advice, and tax planning services were $173,525 for the year ended April 30, 2003,
and $95,000 for the year ended April 30, 2004. The aggregate tax fees PwC billed to registrant's
investment adviser and any entity controlling, controlled by, or under common control with
registrant's investment adviser for services directly related to the operations and financial
reporting of registrant were $0 for the year ended April 30, 2003, and $0 for the year ended April
30, 2004.
(d) All Other Fees
For the fiscal years ended April 30, 2004 and 2003, registrant paid PwC no other fees. The
aggregate fees PwC billed to registrant's investment adviser and any entity controlling,
controlled by, or under common control with registrant's investment adviser for any other services
directly related to the operations and financial reporting of registrant were $0 for the year
ended April 30, 2003, and $0 for the year ended April 30, 2004.
(e) Registrant's audit committee charter, adopted in August 2003, provides that the audit committee
(comprised of the independent directors of registrant) is responsible for pre-approval of all
auditing services performed for the registrant. The audit committee reports to the Board of
Directors ("Board") regarding its approval of the engagement of the auditor and the proposed fees
for the engagement, and the majority of the Board (including the members of the Board who are
independent directors) must approve the auditor at an in-person meeting. The audit committee also
is responsible for pre-approval (subject to the de minimus exceptions for non-audit services
described in Section 10A(i)(1)(B) of the Securities Exchange Act of 1934, as amended) of all
non-auditing services performed for the registrant or for any service affiliate of registrant.
Registrant's audit committee charter also permits a designated member of the audit committee to
pre-approve, between meetings, one or more non-audit service projects, subject to ratification by
the audit committee at the next meeting of the audit committee. Registrant's audit committee
pre-approved all fees described above which PwC billed to registrant.
(f) Less than 50% of the hours billed by PwC for auditing services to registrant for the fiscal year
ended April 30, 2004, were for work performed by persons other than full-time, permanent employees
of PwC.
(g) The aggregate non-audit fees billed by PwC to registrant and to registrant's investment adviser
and any entity controlling, controlled by, or under common control with registrant's investment
adviser for the fiscal years ending April 30, 2003, and April 30, 2004, were $35,000 and $0.
(h) Registrant's audit committee has considered the non-audit services provided to the registrant and
registrant's investment adviser and any entity controlling, controlled by, or under common control
with registrant's investment adviser as described above and determined that these services do not
compromise PwC's independence.
Item 5. Audit Committee of Listed Registrants
Not applicable.
Item 6. Reserved.
Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies
Not applicable.
Item 8. Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers.
Not applicable.
Item 9. Submission of Matters to a Vote of Security Holders
There have been no material changes to the procedures by which shareholders may recommend nominees to
registrant's board of trustees.
Item 10. Controls and Procedures
(a)(i) Registrant's President and Treasurer have concluded that registrant's disclosure controls and
procedures (as defined in Rule 30a-3(c) under the Investment Company Act) are effective, based on
their evaluation of these controls and procedures as of a date within 90 days of the filing date of
this report.
(a)(ii) There were no changes in registrant's internal controls over financial reporting (as defined
in Rule 30a-3(d) under the Investment Company Act) that occurred during registrant's most recent
fiscal half-year that has materially affected, or is reasonably likely to materially affect,
registrant's internal control over financial reporting.
Item 11. Exhibits
(a) The code of ethics pursuant to Item 2 is attached hereto.
(b) Certifications pursuant to Rule 30a-2 under the Investment Company Act of 1940 and 906 of the
Sarbanes-Oxley Act of 2002 are attached hereto.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the
registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
Date: June 30, 2004 THE AAL MUTUAL FUNDS
By: /s/ Pamela J. Moret
-----------------------------------
Pamela J. Moret
President
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940,
this report has been signed below by the following persons on behalf of the registrant and in the capacities
and on the dates indicated.
Date: June 30, 2004 By: /s/ Pamela J. Moret
-----------------------------------
Pamela J. Moret
President
Date: June 30, 2004 By: /s/ Charles D. Gariboldi
-----------------------------------
Charles D. Gariboldi
Treasurer
CERTIFICATION BY PRESIDENT
I, Pamela J. Moret, certify that:
1. I have reviewed this report on Form N-CSR of The AAL Mutual Funds;
2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to
state a material fact necessary to make the statements made, in light of the circumstances under which such
statements were made, not misleading with respect to the period covered by this report;
3. Based on my knowledge, the financial statements, and other financial information included in this report,
fairly present in all material respects the financial condition, results of operations, changes in net
assets, and cash flows (if the financial statements are required to include a statement of cash flows) of
the registrant as of, and for, the periods presented in this report;
4. The registrant's other certifying officer(s) and I are responsible for establishing and maintaining
disclosure controls and procedures (as defined in Rule 30a-2(c) under the Investment Company Act of 1940)
and internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act
of 1940) for the registrant and have:
a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to
be designed under our supervision, to ensure that material information relating to the registrant,
including its consolidated subsidiaries, is made known to us by others within those entities,
particularly during the period in which this report is being prepared;
b) Designed such internal control over financial reporting, or caused such internal control over
financial reporting to be designed under our supervision, to provide reasonable assurance regarding
the reliability of financial reporting and the preparation of financial statements for external
purposes in accordance with generally accepted accounting principles;
c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in
this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a
date within 90 days prior to the filing date of this report based on such evaluation; and
d) Disclosed in this report any change in the registrant's internal control over financial reporting that
occurred during the registrant's most recent fiscal half-year (the registrant's second fiscal
half-year in the case of an annual report) that has materially affected, or is reasonably likely to
materially affect, the registrant's internal control over financial reporting; and
5. The registrant's other certifying officer(s) and I have disclosed to registrant's auditors and the audit
committee of the registrant's board of directors (or persons performing the equivalent functions):
a) All significant deficiencies and material weaknesses in the design or operation of internal controls
over financial reporting which are reasonably likely to adversely affect the registrant's ability to
record, process, summarize, and report financial information; and
b) Any fraud, whether or not material, that involves management or other employees who have a significant
role in the registrant's internal control over financial reporting.
Date: June 30, 2004
/s/ Pamela J. Moret
-----------------------------------------
Pamela J. Moret
President
CERTIFICATION BY TREASURER
I, Charles D. Gariboldi, certify that:
1. I have reviewed this report on Form N-CSR of The AAL Mutual Funds;
2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to
state a material fact necessary to make the statements made, in light of the circumstances under which such
statements were made, not misleading with respect to the period covered by this report;
3. Based on my knowledge, the financial statements, and other financial information included in this report,
fairly present in all material respects the financial condition, results of operations, changes in net
assets, and cash flows (if the financial statements are required to include a statement of cash flows) of
the registrant as of, and for, the periods presented in this report;
4. The registrant's other certifying officer(s) and I are responsible for establishing and maintaining
disclosure controls and procedures (as defined in Rule 30a-2(c) under the Investment Company Act of 1940)
and internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act
of 1940) for the registrant and have:
a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to
be designed under our supervision, to ensure that material information relating to the registrant,
including its consolidated subsidiaries, is made known to us by others within those entities, particularly
during the period in which this report is being prepared;
b) Designed such internal control over financial reporting, or caused such internal control over
financial reporting to be designed under our supervision, to provide reasonable assurance regarding
the reliability of financial reporting and the preparation of financial statements for external purposes
in accordance with generally accepted accounting principles;
c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in
this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a
date within 90 days prior to the filing date of this report based on such evaluation; and
d) Disclosed in this report any change in the registrant's internal control over financial reporting that
occurred during the registrant's most recent fiscal half-year (the registrant's second fiscal
half-year in the case of an annual report) that has materially affected, or is reasonably likely to
materially affect, the registrant's internal control over financial reporting; and
5. The registrant's other certifying officer(s) and I have disclosed to registrant's auditors and the audit
committee of the registrant's board of directors (or persons performing the equivalent functions):
a) All significant deficiencies and material weaknesses in the design or operation of internal controls
over financial reporting which are reasonably likely to adversely affect the registrant's ability to
record, process, summarize, and report financial information; and
b) Any fraud, whether or not material, that involves management or other employees who have a significant
role in the registrant's internal control over financial reporting.
Date: June 30, 2004
/s/ Charles D. Gariboldi
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Charles D. Gariboldi
Treasurer
CERTIFICATION UNDER SECTION 906 OF SARBANES-OXLEY ACT OF 2002
Name of Registrant: The AAL Mutual Funds
In connection with the Report on Form N-CSR for the above-named issuer, the undersigned hereby certify, to the
best of her or his knowledge, that:
1. The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange
Act of 1934; and
2. The information contained in the Report fairly presents, in all material respects, the financial
condition and results of operations of the Issuer.
Date: June 30, 2004 /s/ Pamela J. Moret
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Pamela J. Moret
President
Date: June 30, 2004 Charles D. Gariboldi
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Charles D. Gariboldi
Treasurer
