APPENDIX G
APPENDIX H -- FORM N-CSR
-----------------------------
OMB APPROVAL
OMB Number: 3235-0570
Expires: November 30, 2005
Estimated average burden
hours per response...... 5.0
-----------------------------
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: 811-3541
--------
Asset Management Fund
- --------------------------------------------------------------------------------
(Exact name of registrant as specified in charter)
3435 Stelzer Rd. Columbus, OH 43219
- --------------------------------------------------------------------------------
(Address of principal executive offices) (Zip code)
BISYS Fund Services, 3435 Stelzer Road, Columbus, OH 43219
- --------------------------------------------------------------------------------
(Name and address of agent for service)
Registrant's telephone number, including area code: 614-470-8000
------------
Date of fiscal year end: October 31, 2003
--------------------
Date of reporting period: April 30, 2003
------------------
Form N-CSR is to be used by management investment companies to file reports
with the Commission not later than 10 days after the transmission to
stockholders of any report that is required to be transmitted to stockholders
under Rule 30e-1 under the Investment Company Act of 1940 (17 CFR 270.30e-1).
The Commission may use the information provided on Form N-CSR in its regulatory,
disclosure review, inspection, and policymaking roles.
A registrant is required to disclose the information specified by Form
N-CSR, and the Commission will make this information public. A registrant is not
required to respond to the collection of information contained in Form N-CSR
unless the Form displays a currently valid Office of Management and Budget
("OMB") control number. Please direct comments concerning the accuracy of the
information collection burden estimate and any suggestions for reducing the
burden to Secretary, Securities and Exchange Commission, 450 Fifth Street, NW,
Washington, DC 20549-0609. The OMB has reviewed this collection of information
under the clearance requirements of 44 U.S.C. Section 3507.
ITEM 1. REPORTS TO STOCKHOLDERS.
Include a copy of the report transmitted to stockholders pursuant to
Rule 30e-1 under the Act (17 CFR 270.30e-1).
[AMF LOGO]
ASSET MANAGEMENT FUND
230 West Monroe Street
Chicago, IL 60606
[AMF LOGO]
ASSET MANAGEMENT FUND
MANAGED BY:
SHAY ASSETS MANAGEMENT, INC.
SEMI-ANNUAL REPORT
APRIL 30, 2003
- --------------------------------------------------------------------------------
ASSET MANAGEMENT FUND
MONEY MARKET FUND
STATEMENT OF NET ASSETS
APRIL 30, 2003 (UNAUDITED)
- --------------------------------------------------------------------------------
<Table>
<Caption>
PERCENTAGE
OF NET
ASSETS MATURITY PAR VALUE
- -----------------------------------------------------------------------------------------------------
AGENCY OBLIGATIONS................................ (82.1%)
Fannie Mae -- Discount Note.................. (64.8%)
1.20% 5/1/03 $19,000,000 $19,000,000
1.19% 6/18/03 5,000,000 4,992,067
1.18% 6/25/03 6,000,000 5,989,183
-----------
29,981,250
-----------
Federal Home Loan Bank -- Discount Note...... (17.3%)
1.14% 5/7/03 8,000,000 7,998,480
-----------
TOTAL AGENCY OBLIGATIONS (Cost $37,979,730) 37,979,730
-----------
REPURCHASE AGREEMENTS............................. (18.0%)
Salomon Smith Barney, 1.26% (Agreement dated
4/30/03 to be Repurchased at $8,309,291 on
5/1/03. Collateralized by various Government
Securities.) 8,309,000 8,309,000
-----------
TOTAL REPURCHASE AGREEMENTS (Cost $8,309,000) 8,309,000
-----------
TOTAL INVESTMENTS................................. 100.1% 46,288,730
(Cost $46,288,730) (a)
LIABILITIES IN EXCESS OF OTHER ASSETS............. (0.1%) (54,666)
-----------
Net Assets applicable to 46,245,607 Shares of
Common Stock issued and outstanding............. 100.0% $46,234,064
===========
Net Asset Value, Class I, offering and redemption
price per share ($23,283,071 / 23,294,327) $1.00
===========
Net Asset Value, Class D, offering and redemption
price per share ($22,950,993 / 22,951,280) $1.00
===========
</Table>
- --------------------------------------------------------------------------------
(a) Cost for federal income tax and financial reporting purposes are the same.
See notes to financial statements.
1
- --------------------------------------------------------------------------------
ASSET MANAGEMENT FUND
ADJUSTABLE RATE MORTGAGE (ARM) FUND
STATEMENT OF NET ASSETS
APRIL 30, 2003 (UNAUDITED)
- --------------------------------------------------------------------------------
<Table>
<Caption>
PERCENTAGE
OF NET
ASSETS MATURITY PAR VALUE
- ------------------------------------------------------------------------------------------------------
ADJUSTABLE RATE MORTGAGE-RELATED
SECURITIES*............................... (79.8%)
1 Yr. Constant Maturity Treasury Based
ARMS................................... (30.1%)
Bear Stearns
4.62% 3/25/31 $ 26,939,055 $ 27,477,836
5.32% 12/25/40 6,627,642 6,745,697
Fannie Mae
4.24% 7/1/25 8,179,071 8,480,674
4.47% 11/1/27 5,856,672 6,087,279
4.47% 7/1/28 21,895,250 22,784,744
4.34% 1/1/29 23,428,968 24,351,484
4.28% 8/1/29 18,552,094 19,253,595
5.91% 3/1/30 22,232,955 23,233,438
4.34% 6/1/30 21,462,593 22,321,097
4.21% 9/1/30 12,057,496 12,532,260
5.44% 5/25/42 51,125,922 53,330,727
Fannie Mae Grantor Trust
5.18% 5/25/42 28,063,627 29,308,950
Fannie Mae Whole Loan
5.28% 8/25/42 22,799,372 23,839,593
Fifth Third Mortgage Loan Trust
4.31% 11/19/32 69,004,006 69,888,120
Freddie Mac
5.76% 10/1/22 8,305,928 8,666,716
5.50% 8/1/24 15,918,184 16,574,809
4.33% 9/1/27 10,039,709 10,419,335
4.37% 12/1/27 14,204,432 14,750,415
4.44% 12/1/27 15,140,992 15,737,169
4.35% 9/1/28 73,628,658 76,435,750
4.46% 9/1/30 11,063,539 11,485,336
4.40% 7/1/31 53,475,370 55,530,829
</Table>
- --------------------------------------------------------------------------------
See notes to financial statements.
2
- --------------------------------------------------------------------------------
ASSET MANAGEMENT FUND
ADJUSTABLE RATE MORTGAGE (ARM) FUND (CONTINUED)
STATEMENT OF NET ASSETS
APRIL 30, 2003 (UNAUDITED)
- --------------------------------------------------------------------------------
<Table>
<Caption>
PERCENTAGE
OF NET
ASSETS MATURITY PAR VALUE
- ------------------------------------------------------------------------------------------------------
Government National Mortgage
Association II
4.50% 7/20/31 $ 384,614 $ 394,229
4.50% 8/20/31 64,434 66,045
4.50% 11/20/32 40,969,680 42,173,164
4.00% 1/20/33 637,960 655,504
4.00% 3/20/33 21,488,714 22,079,654
5.63% 10/20/25 6,720,016 6,942,616
5.63% 10/20/26 10,804,170 11,162,058
5.38% 4/20/27 11,158,973 11,493,742
5.38% 4/20/27 18,347,981 18,898,420
5.75% 8/20/27 10,081,368 10,424,765
5.63% 10/20/27 8,345,384 8,621,825
4.50% 3/20/32 26,708,367 27,509,618
5.50% 4/20/32 20,724,131 21,384,712
5.00% 5/20/32 25,112,412 25,818,698
5.00% 6/20/32 37,969,149 39,037,031
5.00% 7/20/32 28,748,181 29,592,659
4.50% 8/20/32 131,370,492 134,654,756
4.50% 9/20/32 103,069,662 105,646,404
4.00% 10/20/32 76,697,287 78,614,719
4.00% 11/20/32 28,220,347 28,925,856
4.50% 1/20/33 34,411,501 35,443,846
4.00% 2/20/33 43,281,144 44,471,376
4.50% 2/20/33 33,353,758 34,354,371
Structured Asset Mortgage Investments
5.04% 3/25/32 35,749,411 36,419,712
--------------
1,334,021,633
--------------
6 Mo. Certificate of Deposit Based ARMS... (0.7%)
Fannie Mae
3.27% 6/1/21 10,385,694 10,544,725
3.69% 12/1/24 14,949,686 15,318,757
Freddie Mac
4.26% 1/1/26 4,772,545 4,909,755
--------------
30,773,237
--------------
</Table>
- --------------------------------------------------------------------------------
See notes to financial statements.
3
- --------------------------------------------------------------------------------
ASSET MANAGEMENT FUND
ADJUSTABLE RATE MORTGAGE (ARM) FUND (CONTINUED)
STATEMENT OF NET ASSETS
APRIL 30, 2003 (UNAUDITED)
- --------------------------------------------------------------------------------
<Table>
<Caption>
PERCENTAGE
OF NET
ASSETS MATURITY PAR VALUE
- ------------------------------------------------------------------------------------------------------
6 Mo. London Interbank Offering Rate
(LIBOR) Based ARMS..................... (15.9%)
Bear Stearns
5.04% 3/25/31 $ 5,519,151 $ 5,674,377
Donaldson Lufkin & Jenrette Securities
Corp.
4.22% 7/25/22 3,590,555 3,586,066
4.74% 4/25/24 729,813 728,900
Fannie Mae
2.67% 9/1/27 68,592,846 70,371,973
2.99% 12/1/27 34,068,031 34,909,085
2.78% 3/1/28 74,102,752 75,885,849
2.87% 11/1/32 14,021,546 14,429,047
3.10% 12/1/32 10,284,291 10,599,248
2.75% 3/1/33 80,236,863 82,242,785
2.93% 3/1/33 25,796,104 26,618,355
Freddie Mac
4.56% 9/1/30 24,634,493 25,519,795
Structured Asset Mortgage Investments
3.21% 7/19/32 42,745,923 43,761,138
Structured Asset Securities Corp.
2.85% 5/25/32 41,108,656 41,571,128
3.47% 11/25/32 57,438,126 59,233,068
4.03% 12/25/32 47,508,121 49,007,596
3.65% 2/25/33 95,117,508 98,416,898
3.92% 3/25/33 57,236,299 59,168,024
--------------
701,723,332
--------------
6 Mo. Treasury Bill Based ARMS............ (0.5%)
Citicorp
4.18% 11/25/22 13,930,337 13,956,456
Housing Securities, Inc.
4.12% 5/25/16 6,351,357 6,357,312
--------------
20,313,768
--------------
</Table>
- --------------------------------------------------------------------------------
See notes to financial statements.
4
- --------------------------------------------------------------------------------
ASSET MANAGEMENT FUND
ADJUSTABLE RATE MORTGAGE (ARM) FUND (CONTINUED)
STATEMENT OF NET ASSETS
APRIL 30, 2003 (UNAUDITED)
- --------------------------------------------------------------------------------
<Table>
<Caption>
PERCENTAGE
OF NET
ASSETS MATURITY PAR VALUE
- ------------------------------------------------------------------------------------------------------
Cost of Funds Index Based ARMS............ (1.3%)
Fannie Mae
3.16% 6/25/12 $ 455,185 $ 455,185
Washington Mutual
3.40% 11/25/42 56,560,593 57,126,199
--------------
57,581,384
--------------
HYBRID ARMS............................... (22.4%)
Bank of America Mortgage Securities
7.11% 6/20/31 50,928,130 52,137,673
7.08% 7/20/32 39,946,176 41,144,561
Bear Stearns Companies, Inc.
6.54% 8/25/31 3,575,529 3,584,468
1.97% 1/25/33 25,687,020 25,687,020
Credit Suisse First Boston
6.87% 11/25/31 31,774,922 32,698,381
5.92% 6/25/32 30,314,152 31,090,952
Fannie Mae
5.17% 6/1/32 11,301,047 11,717,773
2.10% 8/28/32 45,405,121 45,405,121
2.23% 9/25/32 70,000,000 70,000,000
2.05% 10/25/32 40,000,000 40,000,000
5.20% 12/1/37 24,105,848 24,964,619
4.74% 3/1/38 35,514,655 36,857,553
4.93% 7/1/39 13,305,026 13,770,702
GSR Mortgage Loan Trust
2.36% 11/25/32 7,587,737 7,587,737
1.68% 3/25/33 49,222,845 49,222,845
Master Adjustable Rate Mortgage
5.56% 10/25/32 83,157,840 85,444,681
Merrill Lynch Mortgage Investors
5.32% 6/25/23 25,391,361 25,827,775
Salomon Brothers Mortgage Securities
VII
5.83% 9/25/32 52,346,999 53,475,732
Structured Asset Securities Corp.
2.75% 11/25/32 14,758,281 14,758,281
2.01% 3/25/33 35,049,213 35,049,213
1.75% 4/25/33 42,038,918 42,038,918
</Table>
- --------------------------------------------------------------------------------
See notes to financial statements.
5
- --------------------------------------------------------------------------------
ASSET MANAGEMENT FUND
ADJUSTABLE RATE MORTGAGE (ARM) FUND (CONTINUED)
STATEMENT OF NET ASSETS
APRIL 30, 2003 (UNAUDITED)
- --------------------------------------------------------------------------------
<Table>
<Caption>
PERCENTAGE
OF NET
ASSETS MATURITY PAR VALUE
- ------------------------------------------------------------------------------------------------------
Washington Mutual
1.71% 3/25/33 $ 81,783,433 $ 81,783,433
1.53% 4/25/33 70,212,610 70,212,610
1.68% 4/25/33 92,830,848 92,830,847
5.55% 10/19/39 5,498,463 5,550,011
--------------
992,840,906
--------------
MONTHLY London Interbank Offering Rate
(LIBOR) Collateralized Mortgage
Obligations............................ (8.9%)
ABN AMRO Mortgage Corp.
1.77% 10/25/32 71,687,024 71,799,034
Fannie Mae
1.57% 7/25/11 4,521,359 4,521,359
1.57% 11/25/23 3,669,508 3,669,508
1.73% 4/18/28 4,758,495 4,758,495
1.63% 12/18/28 12,211,432 12,211,432
1.57% 8/25/31 10,517,290 10,517,290
1.73% 9/18/31 30,625,531 30,625,531
2.85% 2/1/33 39,992,599 41,554,810
Government National Mortgage
Association
1.91% 6/16/29 6,084,399 6,088,202
GSR Mortgage Loan Trust
1.97% 12/25/31 19,356,415 19,350,366
1.67% 3/25/32 42,795,965 42,742,470
2.02% 7/25/32 23,723,689 23,760,757
2.42% 7/25/32 10,994,821 10,984,514
Master Asset Securitization Trust
1.72% 9/25/32 37,468,718 37,480,427
1.77% 12/25/32 44,387,546 44,401,417
MLCC Mortgage Investors, Inc.
1.69% 9/15/21 11,435,013 11,435,013
Morserv, Inc.
2.17% 11/25/26 17,989 18,017
</Table>
- --------------------------------------------------------------------------------
See notes to financial statements.
6
- --------------------------------------------------------------------------------
ASSET MANAGEMENT FUND
ADJUSTABLE RATE MORTGAGE (ARM) FUND (CONTINUED)
STATEMENT OF NET ASSETS
APRIL 30, 2003 (UNAUDITED)
- --------------------------------------------------------------------------------
<Table>
<Caption>
PERCENTAGE
OF NET
ASSETS MATURITY PAR VALUE
- ------------------------------------------------------------------------------------------------------
Residential Accredit Loans, Inc.
1.67% 1/25/32 $ 18,371,602 $ 18,365,861
--------------
394,284,503
--------------
TOTAL ADJUSTABLE RATE MORTGAGE-RELATED
SECURITIES* (Cost $3,507,710,567) 3,531,538,763
--------------
AGENCY OBLIGATIONS........................ (0.3%)
Freddie Mac............................ (0.3%)
4.13% 6/27/05 13,587,000 13,642,197
--------------
TOTAL AGENCY OBLIGATIONS (Cost
$13,715,145) 13,642,197
--------------
FIXED RATE MORTGAGE-RELATED SECURITIES...... (8.1%)
Collateralized Mortgage Obligations....... (8.1%)
Bank of America Mortgage Securities
6.50% 12/25/31 23,585,899 23,792,275
Fannie Mae
4.00% 11/25/14 33,350,000 34,235,859
3.00% 11/25/15 25,971,000 26,303,753
Freddie Mac
5.00% 6/15/11 3,417,684 3,417,684
5.00% 2/15/15 7,933,254 7,933,254
2.75% 2/15/16 51,051,000 51,609,371
4.00% 8/15/17 29,535,413 29,803,078
Residential Asset Securitization Trust
3.75% 8/25/17 48,233,586 48,746,068
Structured Asset Securities Corp.
3.25% 8/25/32 58,292,279 58,656,606
3.42% 3/25/33 26,156,000 26,278,606
Washington Mutual Mortgage Securities
Corp.
4.00% 3/25/33 46,170,561 46,704,408
--------------
TOTAL FIXED RATE MORTGAGE-RELATED
SECURITIES (Cost $357,312,351) 357,480,962
--------------
</Table>
- --------------------------------------------------------------------------------
See notes to financial statements.
7
- --------------------------------------------------------------------------------
ASSET MANAGEMENT FUND
ADJUSTABLE RATE MORTGAGE (ARM) FUND (CONTINUED)
STATEMENT OF NET ASSETS
APRIL 30, 2003 (UNAUDITED)
- --------------------------------------------------------------------------------
<Table>
<Caption>
PERCENTAGE
OF NET
ASSETS MATURITY PAR VALUE
- ------------------------------------------------------------------------------------------------------
REPURCHASE AGREEMENTS....................... (11.6%)
Bear Stearns* 1.34%, Open Maturity
(Collateralized fully by various
Government Securities.) $200,000,000 $ 200,000,000
Salomon Smith Barney, 1.22% (Agreement
dated 4/30/03 to be Repurchased at
$43,001,457 on 5/1/03. Collateralized
fully by various Government
Securities.) 43,000,000 43,000,000
Salomon Smith Barney, 1.26% (Agreement
dated 4/30/03 to be Repurchased at
$271,501,502 on 5/1/03. Collateralized
fully by various Government
Securities.) 271,492,000 271,492,000
--------------
TOTAL REPURCHASE AGREEMENTS (Cost
$514,492,000) 514,492,000
--------------
TOTAL INVESTMENTS (Cost $4,393,230,063)
(a)....................................... 99.8% 4,417,153,922
OTHER ASSETS IN EXCESS OF LIABILITIES....... 0.2% 8,102,004
--------------
Net Assets applicable to 444,732,343 Shares
of Common Stock issued and outstanding.... 100.0% $4,425,255,926
==============
Net Asset Value, offering and redemption
price per share ($4,425,255,926 /
444,732,343) $9.95
==============
</Table>
- --------------------------------------------------------------------------------
* The rates presented are the rates in effect at April 30, 2003.
(a) Represents cost for financial reporting purposes, is substantially the same
as cost for federal income tax purposes, and differs from market value by
net unrealized appreciation of securities as follows:
<Table>
Unrealized appreciation $24,497,541
Unrealized depreciation (573,682)
-----------
Net unrealized appreciation $23,923,859
===========
</Table>
See notes to financial statements.
8
- --------------------------------------------------------------------------------
ASSET MANAGEMENT FUND
ULTRA SHORT FUND
STATEMENT OF NET ASSETS
APRIL 30, 2003 (UNAUDITED)
- --------------------------------------------------------------------------------
<Table>
<Caption>
PERCENTAGE
OF NET
ASSETS MATURITY PAR VALUE
- --------------------------------------------------------------------------------------------------------
ADJUSTABLE RATE MORTGAGE-RELATED SECURITIES*... (72.4%)
1 Yr. Constant Maturity Treasury Based ARMS.. (30.9%)
Fannie Mae
4.36% 10/1/26 $ 4,057,568 $ 4,207,191
4.49% 10/1/28 4,590,344 4,745,268
4.67% 7/1/30 2,917,953 3,031,935
4.29% 8/1/31 9,305,574 9,599,281
First Republic Mortgage Loan Trust
3.89% 10/15/30 18,872,876 19,250,334
Freddie Mac
5.09% 11/1/28 5,810,542 6,028,438
4.86% 1/1/29 9,503,138 9,889,202
4.05% 12/1/29 1,584,542 1,630,592
4.53% 9/1/30 4,868,738 5,039,144
Government National Mortgage Association
II
5.63% 10/20/25 8,522,657 8,804,970
5.00% 4/20/32 7,497,135 7,707,992
5.00% 8/20/32 9,602,188 9,884,252
------------
89,818,599
------------
6 Mo. Certificate of Deposit Based ARMS...... (5.3%)
Fannie Mae
3.29% 4/1/20 10,291,370 10,426,445
3.35% 7/1/24 4,935,471 5,015,672
------------
15,442,117
------------
6 Mo. London Interbank Offering Rate (LIBOR)
Based ARMS................................ (18.9%)
Fannie Mae
2.91% 12/1/26 12,695,168 13,008,581
3.83% 6/1/32 3,960,396 4,084,158
2.71% 9/1/32 12,517,905 12,866,059
Structured Asset Securities Corp.
2.85% 5/25/32 6,166,298 6,235,669
3.47% 11/25/32 9,155,821 9,441,940
4.18% 11/25/32 9,155,821 9,441,940
------------
55,078,347
------------
</Table>
- --------------------------------------------------------------------------------
See notes to financial statements.
9
- --------------------------------------------------------------------------------
ASSET MANAGEMENT FUND
ULTRA SHORT FUND (CONTINUED)
STATEMENT OF NET ASSETS
APRIL 30, 2003 (UNAUDITED)
- --------------------------------------------------------------------------------
<Table>
<Caption>
PERCENTAGE
OF NET
ASSETS MATURITY PAR VALUE
- --------------------------------------------------------------------------------------------------------
HYBRID ARMS.................................. (6.8%)
Bank of America Mortgage Securities
7.08% 7/20/32 $ 4,588,666 $ 4,726,326
Fannie Mae
2.23% 9/25/32 15,000,000 15,000,000
------------
19,726,326
------------
MONTHLY London Interbank Offering Rate
(LIBOR) Collateralized Mortgage
Obligation................................ (10.5%)
Fannie Mae
2.65% 3/1/33 13,651,906 14,052,930
Wells Fargo Mortgage Backed Securities
Trust,
1.72% 11/25/31 2,792,438 2,792,438
1.67% 4/25/32 7,707,681 7,707,681
1.72% 7/25/32 6,114,100 6,114,100
------------
30,667,149
------------
TOTAL ADJUSTABLE RATE MORTGAGE-RELATED
SECURITIES* (Cost $209,537,491) 210,732,538
------------
CORPORATE NOTES................................ (10.3%)
Libor Floater................................ (1.7%)
Bear Stearns
1.88% 4/19/05 5,000,000 5,029,688
------------
Fixed Rate................................... (8.6%)
VZ GTE
6.54% 12/1/05 6,550,000 7,252,077
Cit Group, Inc.
7.50% 11/14/03 5,500,000 5,659,844
Household Netherlands BV
6.20% 12/1/03 6,500,000 6,676,719
Merrill Lynch & Co.
4.54% 3/8/05 5,000,000 5,239,063
------------
24,827,703
------------
TOTAL CORPORATE NOTES (Cost $29,596,289) 29,857,391
------------
</Table>
- --------------------------------------------------------------------------------
See notes to financial statements.
10
- --------------------------------------------------------------------------------
ASSET MANAGEMENT FUND
ULTRA SHORT FUND (CONTINUED)
STATEMENT OF NET ASSETS
APRIL 30, 2003 (UNAUDITED)
- --------------------------------------------------------------------------------
<Table>
<Caption>
PERCENTAGE
OF NET
ASSETS MATURITY PAR VALUE
- --------------------------------------------------------------------------------------------------------
FIXED RATE MORTGAGE-RELATED SECURITIES......... (14.7%)
Collateralized Mortgage Obligations.......... (14.7%)
Fannie Mae
5.00% 3/25/08 $ 4,952,741 $ 4,962,027
Freddie Mac
5.85% 2/15/19 9,670,288 9,694,464
Government National Mortgage Association
4.00% 3/20/24 8,363,697 8,436,879
Washington Mutual Mortgage Securities
Corp.
4.00% 3/25/33 9,689,926 9,801,966
Washington Mutual
4.00% 4/25/33 9,779,578 9,953,777
------------
TOTAL FIXED RATE MORTGAGE-RELATED SECURITIES
(Cost $42,908,896) 42,849,113
------------
REPURCHASE AGREEMENTS.......................... (2.1%)
Salomon Smith Barney, 1.26% (Agreement dated
4/30/03 to be Repurchased at $6,066,212 on
5/1/03. Collateralized fully by various
Government Securities.) 6,066,000 6,066,000
------------
TOTAL REPURCHASE AGREEMENTS (Cost $6,066,000) 6,066,000
------------
TOTAL INVESTMENTS (Cost $288,108,676) (a)...... 99.5% 289,505,042
</Table>
- --------------------------------------------------------------------------------
See notes to financial statements.
11
- --------------------------------------------------------------------------------
ASSET MANAGEMENT FUND
ULTRA SHORT FUND (CONTINUED)
STATEMENT OF NET ASSETS
APRIL 30, 2003 (UNAUDITED)
- --------------------------------------------------------------------------------
<Table>
<Caption>
PERCENTAGE
OF NET
ASSETS MATURITY PAR VALUE
- --------------------------------------------------------------------------------------------------------
OTHER ASSETS IN EXCESS OF LIABILITIES.......... 0.5% $ 1,357,249
------------
Net Assets applicable to 29,185,837 Shares of
Common Stock issued and outstanding.......... 100.0% $290,862,291
============
Net Asset Value, offering and redemption price
per share ($290,862,291 / 29,185,837) $9.97
============
</Table>
- --------------------------------------------------------------------------------
* The rates presented are the rates in effect at April 30, 2003.
(a) Represents cost for financial reporting purposes, is substantially the same
as cost for federal income tax purposes, and differs from market value by
net unrealized appreciation of securities as follows:
<Table>
Unrealized appreciation $1,543,899
Unrealized depreciation (147,533)
----------
Net unrealized appreciation $1,396,366
==========
</Table>
See notes to financial statements.
12
- --------------------------------------------------------------------------------
ASSET MANAGEMENT FUND
SHORT U.S. GOVERNMENT FUND
STATEMENT OF NET ASSETS
APRIL 30, 2003 (UNAUDITED)
- --------------------------------------------------------------------------------
<Table>
<Caption>
PERCENTAGE
OF NET
ASSETS MATURITY PAR VALUE
- ------------------------------------------------------------------------------------------------------
ADJUSTABLE RATE MORTGAGE-RELATED SECURITIES*...... (42.9%)
1 Yr. Constant Maturity Treasury Based ARMS..... (35.4%)
Fannie Mae
5.76% 11/1/29 $ 3,414,107 $ 3,556,006
5.91% 3/1/30 3,045,748 3,182,807
Freddie Mac
4.44% 5/1/18 2,673,605 2,773,865
Government National Mortgage Association II
5.63% 12/20/23 6,152,590 6,356,395
5.75% 7/20/27 1,761,009 1,820,994
5.63% 12/20/27 3,173,724 3,278,854
4.50% 8/20/32 13,049,874 13,376,119
4.50% 9/20/32 4,389,581 4,499,320
4.50% 12/20/32 5,626,738 5,792,023
4.50% 1/20/33 4,424,316 4,557,046
4.00% 2/20/33 9,923,391 10,196,285
4.50% 3/20/33 11,202,938 11,539,026
------------
70,928,740
------------
HYBRID ARMS..................................... (7.5%)
Fannie Mae
2.23% 9/25/32 15,000,000 15,000,000
------------
TOTAL ADJUSTABLE RATE MORTGAGE-RELATED
SECURITIES* (Cost $85,104,533) 85,928,740
------------
AGENCY OBLIGATIONS................................ (14.1%)
Fannie Mae...................................... (5.3%)
6.50% 8/15/04 10,000,000 10,665,625
------------
Freddie Mac..................................... (8.8%)
3.88% 2/15/05 11,000,000 11,457,188
2.88% 9/15/05 6,000,000 6,146,250
------------
17,603,438
------------
TOTAL AGENCY OBLIGATIONS (Cost $27,465,565) 28,269,063
------------
</Table>
- --------------------------------------------------------------------------------
See notes to financial statements.
13
- --------------------------------------------------------------------------------
ASSET MANAGEMENT FUND
SHORT U.S. GOVERNMENT FUND (CONTINUED)
STATEMENT OF NET ASSETS
APRIL 30, 2003 (UNAUDITED)
- --------------------------------------------------------------------------------
<Table>
<Caption>
PERCENTAGE
OF NET
ASSETS MATURITY PAR VALUE
- ------------------------------------------------------------------------------------------------------
FIXED RATE MORTGAGE-RELATED SECURITIES............ (15.4%)
15 Yr. Securities............................... (3.5%)
Freddie Mac
8.50% 8/17/07 $ 2,532,973 $ 2,707,115
8.00% 12/17/15 3,977,705 4,335,698
------------
7,042,813
------------
BALLOONS........................................ (1.1%)
Freddie Mac
6.50% 7/1/08 2,094,071 2,153,621
------------
Collateralized Mortgage Obligations............. (10.8%)
Fannie Mae
3.50% 6/25/10 10,000,000 10,209,375
Freddie Mac
7.00% 12/15/06 1,115,188 1,146,204
4.00% 10/15/16 10,000,000 10,328,125
------------
21,683,704
------------
TOTAL FIXED RATE MORTGAGE-RELATED SECURITIES
(Cost $30,532,071) 30,880,138
------------
REPURCHASE AGREEMENTS............................. (4.1%)
Salomon Smith Barney, 1.26% (Agreement dated
4/30/03 to be Repurchased at $8,181,286 on
5/1/03. Collateralized fully by various
Government Securities.) 8,181,000 8,181,000
------------
TOTAL REPURCHASE AGREEMENTS (Cost $8,181,000) 8,181,000
------------
</Table>
- --------------------------------------------------------------------------------
See notes to financial statements.
14
- --------------------------------------------------------------------------------
ASSET MANAGEMENT FUND
SHORT U.S. GOVERNMENT FUND (CONTINUED)
STATEMENT OF NET ASSETS
APRIL 30, 2003 (UNAUDITED)
- --------------------------------------------------------------------------------
<Table>
<Caption>
PERCENTAGE
OF NET
ASSETS MATURITY PAR VALUE
- ------------------------------------------------------------------------------------------------------
U.S. TREASURY OBLIGATIONS......................... (23.0%)
U.S. Treasury Notes............................. (23.0%)
3.25% 5/31/04 $ 5,000,000 $ 5,110,938
6.00% 8/15/04 4,000,000 4,245,000
5.88% 11/15/04 5,000,000 5,346,875
5.75% 11/15/05 8,000,000 8,792,500
4.63% 5/15/06 3,000,000 3,231,563
3.50% 11/15/06 4,000,000 4,170,000
3.25% 8/15/07 5,000,000 5,135,938
3.00% 11/15/07 10,000,000 10,137,499
------------
TOTAL U.S. TREASURY OBLIGATIONS (Cost
$44,342,448) 46,170,313
------------
TOTAL INVESTMENTS (Cost $195,625,617) (a)......... 99.5% 199,429,254
OTHER ASSETS IN EXCESS OF LIABILITIES............. 0.5% 927,166
------------
Net Assets applicable to 18,603,570 Shares of
Common Stock issued and outstanding............. 100.0% $200,356,420
============
Net Assets Value, offering and redemption price
per Share ($200,356,420 / 18,603,570) $10.77
============
</Table>
- --------------------------------------------------------------------------------
* The rates presented are the rates in effect at April 30, 2003.
(a) Represents cost for financial reporting purposes, is substantially the same
as cost for federal income tax purposes, and differs from market value by
net unrealized appreciation of securities as follows:
<Table>
Unrealized appreciation $3,803,637
Unrealized depreciation 0
----------
Net unrealized appreciation $3,803,637
==========
</Table>
See notes to financial statements.
15
- --------------------------------------------------------------------------------
ASSET MANAGEMENT FUND
INTERMEDIATE MORTGAGE FUND
STATEMENT OF NET ASSETS
APRIL 30, 2003 (UNAUDITED)
- --------------------------------------------------------------------------------
<Table>
<Caption>
PERCENTAGE
OF NET
ASSETS MATURITY PAR VALUE
- -----------------------------------------------------------------------------------------------------
ADJUSTABLE RATE MORTGAGE-RELATED SECURITIES*..... (23.2%)
1 Yr. Constant Maturity Treasury Based ARMS.... (23.2%)
Government National Mortgage Association II
4.00% 10/20/32 $13,299,560 $ 13,632,049
4.00% 12/20/32 25,604,670 26,244,787
5.00% 1/20/33 7,850,628 8,113,133
3.50% 2/20/33 18,479,395 18,831,659
4.50% 2/20/33 8,563,097 8,819,990
------------
TOTAL ADJUSTABLE RATE MORTGAGE-RELATED
SECURITIES* (Cost $75,325,739) 75,641,618
------------
AGENCY OBLIGATIONS............................... (4.2%)
Freddie Mac................................. (4.2%)
3.88% 2/15/05 11,000,000 11,457,188
5.75% 3/15/09 2,000,000 2,256,250
------------
TOTAL AGENCY OBLIGATIONS (Cost $13,035,735) 13,713,438
------------
FIXED RATE MORTGAGE-RELATED SECURITIES........... (52.8%)
15 Yr. Securities.............................. (33.4%)
Government National Mortgage Association
6.00% 1/15/14 3,032,358 3,204,824
Fannie Mae
6.50% 8/1/14 1,086,562 1,151,416
7.00% 3/1/15 2,632,400 2,810,087
7.00% 3/1/15 4,871,260 5,200,070
7.00% 3/1/15 2,804,516 2,993,820
7.50% 11/1/15 3,913,040 4,196,735
6.50% 1/1/16 4,665,475 4,943,946
6.50% 2/1/17 6,065,475 6,427,508
6.50% 6/1/17 5,072,171 5,374,916
6.00% 7/1/17 7,752,991 8,128,527
6.00% 7/1/17 5,297,700 5,554,307
5.50% 9/1/17 10,983,440 11,429,642
5.50% 10/1/17 5,453,516 5,675,065
5.00% 11/1/17 17,364,059 17,922,963
</Table>
- --------------------------------------------------------------------------------
See notes to financial statements.
16
- --------------------------------------------------------------------------------
ASSET MANAGEMENT FUND
INTERMEDIATE MORTGAGE FUND (CONTINUED)
STATEMENT OF NET ASSETS
APRIL 30, 2003 (UNAUDITED)
- --------------------------------------------------------------------------------
<Table>
<Caption>
PERCENTAGE
OF NET
ASSETS MATURITY PAR VALUE
- -----------------------------------------------------------------------------------------------------
Freddie Mac
7.50% 1/1/10 $ 2,459,437 $ 2,637,747
7.50% 7/1/11 1,427,414 1,530,902
6.50% 2/1/12 2,296,782 2,425,976
6.50% 4/1/12 1,579,008 1,667,827
6.00% 3/1/14 2,160,884 2,257,449
6.00% 7/1/14 1,826,872 1,908,510
6.00% 6/1/17 10,967,690 11,457,809
------------
108,900,046
------------
Collateralized Mortgage Obligations............ (19.4%)
Fannie Mae
3.50% 6/25/10 20,000,000 20,418,751
5.50% 10/25/19 2,706,779 2,707,625
Freddie Mac
4.00% 10/15/16 10,604,957 10,952,932
Government National Mortgage Association
4.00% 3/20/24 4,181,848 4,218,439
Washington Mutual Mortgage Securities Corp.
4.00% 3/25/33 9,689,926 9,801,966
Washington Mutual
4.00% 4/25/33 14,669,367 14,930,665
------------
63,030,378
------------
TOTAL FIXED RATE MORTGAGE-RELATED SECURITIES
(Cost $168,282,041) 171,930,424
------------
REPURCHASE AGREEMENTS............................ (6.2%)
Salomon Smith Barney, 1.26% (Agreement dated
4/30/03 to be Repurchased at $20,163,706 on
5/1/03. Collateralized fully by various
Government Securities.) 20,163,000 20,163,000
------------
TOTAL REPURCHASE AGREEMENTS (Cost $20,163,000) 20,163,000
------------
</Table>
- --------------------------------------------------------------------------------
See notes to financial statements.
17
- --------------------------------------------------------------------------------
ASSET MANAGEMENT FUND
INTERMEDIATE MORTGAGE FUND (CONTINUED)
STATEMENT OF NET ASSETS
APRIL 30, 2003 (UNAUDITED)
- --------------------------------------------------------------------------------
<Table>
<Caption>
PERCENTAGE
OF NET
ASSETS MATURITY PAR VALUE
- -----------------------------------------------------------------------------------------------------
U.S. TREASURY OBLIGATIONS........................ (13.3%)
U.S. Treasury Notes............................ (13.3%)
2.13% 10/31/04 $ 4,000,000 $ 4,050,000
5.88% 11/15/04 7,000,000 7,485,625
5.75% 11/15/05 5,000,000 5,495,313
4.63% 5/15/06 7,000,000 7,540,313
3.00% 11/15/07 14,000,000 14,192,499
5.00% 8/15/11 4,000,000 4,382,500
------------
TOTAL U.S. TREASURY OBLIGATIONS (Cost
$41,558,326) 43,146,250
------------
TOTAL INVESTMENTS (Cost $318,364,841) (a)........ 99.7% 324,594,730
OTHER ASSETS IN EXCESS OF LIABILITIES............ 0.3% 857,479
------------
Net Assets applicable to 33,306,150 Shares of
Common Stock issued and outstanding............ 100.0% $325,452,209
============
Net Asset Value, offering and redemption price
per share ($325,452,209 / 33,306,150) $9.77
============
</Table>
- --------------------------------------------------------------------------------
* The rates presented are the rates in effect at April 30, 2003.
(a) Represents cost for financial reporting purposes, is substantially the same
as cost for federal income tax purposes, and differs from market value by
net unrealized appreciation of securities as follows:
<Table>
Unrealized appreciation $6,343,513
Unrealized depreciation (113624)
----------
Net unrealized appreciation $6,229,889
==========
</Table>
See notes to financial statements.
18
- --------------------------------------------------------------------------------
ASSET MANAGEMENT FUND
U.S. GOVERNMENT MORTGAGE FUND
STATEMENT OF NET ASSETS
APRIL 30, 2003 (UNAUDITED)
- --------------------------------------------------------------------------------
<Table>
<Caption>
PERCENTAGE
OF NET
ASSETS MATURITY PAR VALUE
- --------------------------------------------------------------------------------------------------------
ADJUSTABLE RATE MORTGAGE-RELATED SECURITIES*... (26.4%)
1 Yr. Constant Maturity Treasury Based ARMS.. (26.4%)
Government National Mortgage Association
II
4.50% 8/20/32 $11,298,513 $ 11,580,976
4.00% 11/20/32 11,756,874 12,050,796
4.50% 1/20/33 7,369,872 7,590,968
4.00% 2/20/33 9,943,905 10,217,362
------------
TOTAL ADJUSTABLE RATE MORTGAGE-RELATED
SECURITIES* (Cost $41,382,160) 41,440,102
------------
AGENCY OBLIGATIONS............................. (2.2%)
Freddie Mac............................... (2.2%)
5.75% 3/15/09 3,000,000 3,384,375
------------
TOTAL AGENCY OBLIGATIONS (Cost $2,740,481) 3,384,375
------------
FIXED RATE MORTGAGE-RELATED SECURITIES......... (56.9%)
15 Yr. Securities............................ (10.3%)
Fannie Mae
7.00% 3/1/15 4,413,146 4,711,033
7.50% 11/1/15 1,739,129 1,865,216
6.50% 2/1/17 3,032,737 3,213,754
6.50% 6/1/17 2,173,788 2,303,536
5.00% 3/1/18 3,982,444 4,110,629
------------
16,204,168
------------
</Table>
- --------------------------------------------------------------------------------
See notes to financial statements.
19
- --------------------------------------------------------------------------------
ASSET MANAGEMENT FUND
U.S. GOVERNMENT MORTGAGE FUND (CONTINUED)
STATEMENT OF NET ASSETS
APRIL 30, 2003 (UNAUDITED)
- --------------------------------------------------------------------------------
<Table>
<Caption>
PERCENTAGE
OF NET
ASSETS MATURITY PAR VALUE
- --------------------------------------------------------------------------------------------------------
30 Yr. Securities............................ (46.6%)
Fannie Mae
8.00% 8/1/30 $ 629,641 $ 679,815
6.00% 1/1/32 3,518,111 3,665,432
6.00% 10/1/32 3,310,752 3,449,390
6.00% 10/1/32 4,120,415 4,292,957
5.50% 12/1/32 4,865,496 5,006,900
6.00% 12/1/32 2,726,884 2,841,073
5.50% 2/1/33 14,783,479 15,213,124
5.50% 2/1/33 19,869,518 20,446,976
Government National Mortgage Association
7.50% 2/15/24 3,080,455 3,288,385
7.00% 4/15/27 4,391,400 4,657,629
7.50% 6/15/27 529,760 565,519
6.50% 4/15/28 1,156,716 1,215,274
6.00% 11/15/28 1,706,581 1,784,977
6.00% 1/15/29 3,366,390 3,521,033
8.00% 4/15/30 829,176 896,029
Government National Mortgage Association
II
6.50% 3/20/26 1,399,370 1,470,213
------------
72,994,726
------------
TOTAL FIXED RATE MORTGAGE-RELATED SECURITIES
(Cost $86,336,181) 89,198,894
------------
REPURCHASE AGREEMENTS.......................... (6.3%)
Salomon Smith Barney, 1.26% (Agreement dated
4/30/03 to be Repurchased at $9,824,344 on
5/1/03. Collateralized fully by various
Government Securities.) 9,824,000 9,824,000
------------
TOTAL REPURCHASE AGREEMENTS (Cost $9,824,000) 9,824,000
------------
</Table>
- --------------------------------------------------------------------------------
See notes to financial statements.
20
- --------------------------------------------------------------------------------
ASSET MANAGEMENT FUND
U.S. GOVERNMENT MORTGAGE FUND (CONTINUED)
STATEMENT OF NET ASSETS
APRIL 30, 2003 (UNAUDITED)
- --------------------------------------------------------------------------------
<Table>
<Caption>
PERCENTAGE
OF NET
ASSETS MATURITY PAR VALUE
- --------------------------------------------------------------------------------------------------------
U.S. TREASURY OBLIGATIONS...................... (8.2%)
U.S. Treasury Notes....................... (8.2%)
1.88% 9/30/04 $ 4,000,000 $ 4,033,750
2.13% 10/31/04 2,000,000 2,025,000
3.00% 11/15/07 2,000,000 2,027,500
6.50% 2/15/10 4,000,000 4,762,500
------------
TOTAL U.S. TREASURY OBLIGATIONS (Cost
$12,037,500) 12,848,750
------------
TOTAL INVESTMENTS (Cost $152,320,322) (a)...... 100.0% 156,696,121
OTHER ASSETS IN EXCESS OF LIABILITIES.......... 0.0% 47,430
------------
Net Assets applicable to 14,537,875 Shares of
Common Stock issued and outstanding.......... 100.0% $156,743,551
============
Net Asset Value, offering and redemption price
per share ($156,743,551 / 14,537,875) $10.78
============
</Table>
- --------------------------------------------------------------------------------
* The rates presented are the rates in effect at April 30, 2003.
(a) Represents cost for financial reporting purposes, is substantially the same
as cost for federal income tax purposes, and differs from market value by
net unrealized appreciation of securities as follows:
<Table>
Unrealized appreciation $4,394,041
Unrealized depreciation (18,242)
----------
Net unrealized appreciation $4,375,799
==========
</Table>
See notes to financial statements.
21
(PAGE INTENTIONALLY LEFT BLANK)
22
- --------------------------------------------------------------------------------
ASSET MANAGEMENT FUND
STATEMENTS OF OPERATIONS
FOR THE SIX MONTHS ENDED APRIL 30, 2003 (UNAUDITED)
- --------------------------------------------------------------------------------
<Table>
<Caption>
ADJUSTABLE U.S.
MONEY RATE MORTGAGE ULTRA SHORT U.S. INTERMEDIATE GOVERNMENT
MARKET (ARM) SHORT GOVERNMENT MORTGAGE MORTGAGE
FUND FUND FUND FUND FUND FUND
- -----------------------------------------------------------------------------------------------------------------------
INVESTMENT INCOME:
Interest income.............. $309,049 $45,493,126 $2,938,679 $2,843,804 $4,994,336 $2,799,504
Operating expenses:
Investment advisory fees... 36,642 8,451,210 630,109 222,182 531,698 166,463
Distribution fee -- Class I
Shares................... 25,321 4,973,945 350,059 133,310 227,872 99,878
Distribution fee -- Class D
Shares................... 45,287 -- -- -- -- --
Administration fee......... 7,328 347,724 42,006 26,661 45,573 19,975
Custodian fee.............. 3,861 126,327 8,940 12,309 9,195 4,823
Transfer agent fee......... 2,175 34,093 4,523 2,083 1,635 907
Legal...................... 1,110 104,917 10,338 4,415 12,617 4,643
Printing................... 496 29,201 -- 1,483 2,335 1,131
Trustees' fees............. 546 43,295 3,207 1,908 3,261 1,320
Other...................... 9,368 285,700 13,265 25,523 17,434 8,213
-------- ----------- ---------- ----------- ---------- ----------
Total expenses before fee
reductions............... 132,134 14,396,412 1,062,447 429,874 851,620 307,353
Expenses reduced by
Investment Advisor....... -- (3,477,265) (280,050) -- (151,913) --
Expenses reduced by
Distributor.............. (33,254) (1,989,563) (140,023) -- -- --
-------- ----------- ---------- ----------- ---------- ----------
Net expenses............. 98,880 8,929,584 642,374 429,874 699,707 307,353
-------- ----------- ---------- ----------- ---------- ----------
Net investment income.... 210,169 36,563,542 2,296,305 2,413,930 4,294,629 2,492,151
-------- ----------- ---------- ----------- ---------- ----------
REALIZED AND UNREALIZED GAINS
FROM INVESTMENT ACTIVITIES:
Realized gains/(losses) from
investment transactions.... -- 4,298,331 154,794 144,052 8,394 (184,951)
Change in unrealized
appreciation/depreciation
from investments........... -- 6,380,500 1,059,844 64,246 483,289 540,264
-------- ----------- ---------- ----------- ---------- ----------
Net realized/unrealized
gains/(losses) from
investments.............. -- 10,678,831 1,214,638 208,298 491,683 355,313
-------- ----------- ---------- ----------- ---------- ----------
CHANGE IN NET ASSETS RESULTING
FROM OPERATIONS................ $210,169 $47,242,373 $3,510,943 $2,622,228 $4,786,312 $2,847,464
======== =========== ========== =========== ========== ==========
</Table>
- --------------------------------------------------------------------------------
See notes to financial statements.
23
- --------------------------------------------------------------------------------
ASSET MANAGEMENT FUND
STATEMENT OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
<Table>
<Caption>
MONEY MARKET FUND
------------------------------
SIX MONTHS
ENDED
APRIL 30, YEAR ENDED
2003 OCTOBER 31,
(UNAUDITED) 2002
- --------------------------------------------------------------------------------------------
Increase (decrease) in net assets:
Operations:
Net investment income.................................. $ 210,169 $ 842,938
------------- -------------
Change in net assets resulting from operations....... 210,169 842,938
------------- -------------
Dividends paid to Class I stockholders:
From net investment income............................. (171,331) (734,664)
Dividends paid to Class D stockholders:
From net investment income........................... (38,838) (108,274)
------------- -------------
Total dividends paid to stockholders.............. (210,169) (842,938)
------------- -------------
Capital Transactions Class I Shares:
Proceeds from sale of shares........................... 141,663,301 348,087,003
Shares issued to stockholders in reinvestment of
dividends............................................. 177,255 648,460
Cost of shares repurchased............................. (149,128,138) (363,655,739)
Capital Transactions Class D Shares:
Proceeds from sale of shares........................... 98,438,599 127,098,202
Shares issued to stockholders in reinvestment of
dividends............................................. 23,323 47,264
Cost of shares repurchased............................. (90,550,180) (120,893,245)
------------- -------------
Net increase (decrease) in net assets from capital
transactions........................................ 624,160 (8,668,055)
------------- -------------
Total increase (decrease) in net assets.............. 624,160 (8,668,055)
Net Assets:
Beginning of year......................................... 45,609,904 54,277,959
------------- -------------
End of year............................................... $ 46,234,064 $ 45,609,904
============= =============
</Table>
- --------------------------------------------------------------------------------
See notes to financial statements.
24
- --------------------------------------------------------------------------------
ASSET MANAGEMENT FUND
STATEMENT OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
<Table>
<Caption>
ADJUSTABLE RATE
MORTGAGE (ARM) FUND
-----------------------------------
SIX MONTHS ENDED
APRIL 30, YEAR ENDED
2003 OCTOBER 31,
(UNAUDITED) 2002
- -------------------------------------------------------------------------------------------------
Increase (decrease) in net assets:
Operations:
Net investment income.................................. $ 36,563,542 $ 76,561,186
Net realized gains (losses) from investments........... 4,298,331 7,690,298
Change in unrealized appreciation/depreciation from
investments.......................................... 6,380,500 (726,538)
--------------- ---------------
Change in net assets resulting from operations....... 47,242,373 83,524,946
--------------- ---------------
Dividends paid to stockholders:
From net investment income............................. (47,823,152) (87,602,582)
--------------- ---------------
Total dividends paid to stockholders................. (47,823,152) (87,602,582)
--------------- ---------------
Capital Transactions:
Proceeds from sale of shares........................... 2,743,017,010 3,458,666,524
Shares issued to stockholders in reinvestment of
dividends............................................ 31,396,689 53,723,023
Cost of shares repurchased............................. (1,738,552,372) (2,183,181,013)
--------------- ---------------
Change in net assets from capital transactions....... 1,035,861,327 1,329,208,534
--------------- ---------------
Change in net assets................................. 1,035,280,548 1,325,130,898
Net Assets:
Beginning of year......................................... 3,389,975,378 2,064,844,480
--------------- ---------------
End of year............................................... $ 4,425,255,926 $ 3,389,975,378
=============== ===============
</Table>
- --------------------------------------------------------------------------------
(a) Commencement of operations.
See notes to financial statements.
25
- --------------------------------------------------------------------------------
ASSET MANAGEMENT FUND
STATEMENTS OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
<Table>
<Caption>
ULTRA SHORT FUND
------------------------------------
SIX MONTHS ENDED
APRIL 30, NOVEMBER 14,
2003 2001 (A) TO
(UNAUDITED) OCTOBER 31, 2002
- ----------------------------------------------------------------------------------------------------
Increase (decrease) in net assets:
Operations:
Net investment income.................................. $ 2,296,305 $ 4,364,900
Net realized gains (losses) from investments........... 154,794 189,228
Change in unrealized appreciation/depreciation from
investments.......................................... 1,059,844 336,522
------------- -------------
Change in net assets resulting from operations....... 3,510,943 4,890,650
------------- -------------
Dividends paid to stockholders:
From net investment income............................. (3,161,809) (5,973,806)
------------- -------------
Total dividends paid to stockholders................. (3,161,809) (5,973,806)
------------- -------------
Capital Transactions:
Proceeds from sale of shares........................... 125,202,106 494,150,334
Shares issued to stockholders in reinvestment of
dividends............................................ 1,871,559 3,304,993
Cost of shares repurchased............................. (123,676,612) (209,256,067)
------------- -------------
Change in net assets from capital transactions....... 3,397,053 288,199,260
------------- -------------
Change in net assets................................. 3,746,187 287,116,104
Net Assets:
Beginning of year......................................... 287,116,104 --
------------- -------------
End of year............................................... $ 290,862,291 $ 287,116,104
============= =============
</Table>
- --------------------------------------------------------------------------------
(a) Commencement of operations.
See notes to financial statements.
26
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
<Table>
<Caption>
SHORT U.S. GOVERNMENT FUND INTERMEDIATE MORTGAGE FUND U.S. GOVERNMENT MORTGAGE FUND
- ---------------------------------------------------------------------------------------------------------
SIX MONTHS ENDED SIX MONTHS ENDED SIX MONTHS ENDED
APRIL 30, YEAR ENDED APRIL 30, YEAR ENDED APRIL 30, YEAR ENDED
2003 OCTOBER 31, 2003 OCTOBER 31, 2003 OCTOBER 31,
(UNAUDITED) 2002 (UNAUDITED) 2002 (UNAUDITED) 2002
- ---------------------------------------------------------------------------------------------------------
$ 2,413,930 $ 5,977,703 $ 4,294,629 $ 9,198,360 $ 2,492,151 $ 4,821,263
144,052 1,231,346 8,394 126,957 (184,951) 107,599
64,246 (739,164) 483,289 (1,135,402) 540,264 (661,601)
------------ ------------- ------------- ------------- ------------ ------------
2,622,228 6,469,885 4,786,312 8,189,915 2,847,464 4,267,261
------------ ------------- ------------- ------------- ------------ ------------
(2,720,797) (6,540,177) (5,206,066) (9,657,659) (2,807,236) (5,015,711)
------------ ------------- ------------- ------------- ------------ ------------
(2,720,797) (6,540,177) (5,206,066) (9,657,659) (2,807,236) (5,015,711)
------------ ------------- ------------- ------------- ------------ ------------
78,742,365 152,488,315 204,630,953 216,826,116 130,047,501 47,210,000
1,535,270 4,118,203 1,809,328 3,976,778 1,536,871 2,930,281
(41,992,579) (185,998,683) (121,212,891) (183,581,377) (69,035,255) (60,950,579)
------------ ------------- ------------- ------------- ------------ ------------
38,285,056 (29,392,165) 85,227,390 37,221,517 62,549,117 (10,810,298)
------------ ------------- ------------- ------------- ------------ ------------
38,186,487 (29,462,457) 84,807,636 35,753,773 62,589,345 (11,558,748)
162,169,933 191,632,390 240,644,573 204,890,800 94,154,206 105,712,954
------------ ------------- ------------- ------------- ------------ ------------
$200,356,420 $ 162,169,933 $ 325,452,209 $ 240,644,573 $156,743,551 $ 94,154,206
============ ============= ============= ============= ============ ============
</Table>
- --------------------------------------------------------------------------------
27
- --------------------------------------------------------------------------------
ASSET MANAGEMENT FUND
MONEY MARKET FUND CLASS I SHARES
FINANCIAL HIGHLIGHTS
(SELECTED DATA FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD INDICATED)
- --------------------------------------------------------------------------------
<Table>
<Caption>
SIX MONTHS
ENDED
APRIL 30, YEAR ENDED OCTOBER 31,
2003 --------------------------------------------------------
(UNAUDITED) 2002 2001 2000 1999 1998
- -----------------------------------------------------------------------------------------------------------
Net asset value, beginning of
year............................ $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
-------- -------- -------- -------- -------- --------
Income from investment operations:
Net investment income........... 0.0050 0.0152 0.0441 0.0578 0.0480 0.0523
Net realized losses from
investments.................. -- -- -- --(a) -- --
-------- -------- -------- -------- -------- --------
Total from investment
operations................. 0.0050 0.0152 0.0441 0.0578 0.0480 0.0523
-------- -------- -------- -------- -------- --------
Less distributions:
Dividends paid to stockholders:
From net investment income... (0.0050) (0.0152) (0.0441) (0.0578) (0.0480) (0.0523)
From net realized gains...... -- -- -- -- --(a) --
-------- -------- -------- -------- -------- --------
Change in net asset value......... -- -- -- -- -- --
-------- -------- -------- -------- -------- --------
Net asset value, end of year...... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
======== ======== ======== ======== ======== ========
Total return...................... 0.50%(b) 1.54% 4.50% 5.93% 4.94% 5.35%
Ratios/Supplemental data:
Net assets, end of year (in
000's)....................... $ 23,283 $ 30,571 $ 45,491 $ 48,202 $ 92,074 $ 58,445
Ratio of expenses to average net
assets....................... 0.25%(c) 0.26% 0.30% 0.30% 0.25% 0.25%
Ratio of net investment income
to average net assets........ 1.01%(c) 1.53% 4.31% 5.74% 4.81% 5.22%
Ratio of expenses to average net
assets*...................... 0.40%(c) 0.41% 0.45% 0.45% 0.40% 0.40%
</Table>
- --------------------------------------------------------------------------------
* During the period, certain fees were voluntarily reduced. If such voluntary
fee reductions had not occurred, the ratios would have been as indicated.
(a) Net realized losses per share and/or distributions from net realized gains
were less than $0.00005.
(b) Not annualized.
(c) Annualized.
See notes to financial statements.
28
- --------------------------------------------------------------------------------
ASSET MANAGEMENT FUND
MONEY MARKET FUND CLASS D SHARES
FINANCIAL HIGHLIGHTS
(SELECTED DATA FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD INDICATED)
- --------------------------------------------------------------------------------
<Table>
<Caption>
SIX MONTHS
ENDED YEAR YEAR DECEMBER 19,
APRIL 30, ENDED ENDED 1999(A) TO
2003 OCTOBER 31, OCTOBER 31, OCTOBER 31,
(UNAUDITED) 2002 2001 2000
- ---------------------------------------------------------------------------------------------------------------
Net asset value, beginning of year.................. $ 1.00 $ 1.00 $ 1.00 $ 1.00
-------- -------- -------- --------
Income from investment operations:
Net investment income............................. 0.0026 0.0104 0.0397 0.0466
Net realized losses from investments.............. -- -- -- --(b)
-------- -------- -------- --------
Total from investment operations............... 0.0026 0.0104 0.0397 0.0466
-------- -------- -------- --------
Less distributions:
Dividends paid to stockholders:
From net investment income..................... (0.0026) (0.0104) (0.0397) (0.0466)
-------- -------- -------- --------
Change in net asset value........................... -- -- -- --
-------- -------- -------- --------
Net asset value, end of year........................ $ 1.00 $ 1.00 $ 1.00 $ 1.00
======== ======== ======== ========
Total return........................................ 0.26%(c) 1.05% 4.04% 4.74%(d)
Ratios/Supplemental data:
Net assets, end of year (in 000's)................ $ 22,951 $ 15,039 $ 8,787 $ 3,388
Ratio of expenses to average net assets........... 0.75%(e) 0.75% 0.75% 0.75%(e)
Ratio of net investment income to average net
assets......................................... 0.51%(e) 1.04% 3.46% 5.66%(e)
Ratio of expenses to average net assets*.......... 0.85%(e) 0.86% 0.91% 0.94%(e)
</Table>
- --------------------------------------------------------------------------------
* During the period, certain fees were voluntarily reduced. If such voluntary
fee reductions had not occurred, the ratios would have been as indicated.
(a) Commencement of operations.
(b) Net realized losses per share was less than $0.00005.
(c) Not annualized.
(d) Represents the total return for the period from December 19, 1999 to October
31, 2000.
(e) Annualized.
See notes to financial statements.
29
- --------------------------------------------------------------------------------
ASSET MANAGEMENT FUND
ADJUSTABLE RATE MORTGAGE (ARM) FUND
FINANCIAL HIGHLIGHTS
(SELECTED DATA FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD INDICATED)
- --------------------------------------------------------------------------------
<Table>
<Caption>
SIX MONTHS
ENDED
APRIL 30, YEAR ENDED OCTOBER 31,
2003 ------------------------------------------------------------
(UNAUDITED) 2002 2001+ 2000 1999 1998
- ----------------------------------------------------------------------------------------------------------
Net asset value, beginning of
year....................... $ 9.95 $ 9.97 $ 9.86 $ 9.84 $ 9.91 $ 9.99
---------- ---------- ---------- -------- -------- --------
Income from investment
operations:
Net investment income...... 0.0963 0.2947 0.5319 0.6048 0.5290 0.5676
Net realized and unrealized
gains (losses) from
investments............. 0.0229 0.0124 0.1386 0.0233 (0.0700) (0.0800)
---------- ---------- ---------- -------- -------- --------
Total from investment
operations............ 0.1192 0.3071 0.6705 0.6281 0.4590 0.4876
---------- ---------- ---------- -------- -------- --------
Less distributions:
Dividends paid to
stockholders:
From net investment
income................ (0.1192) (0.3271) (0.5605) (0.6129) (0.5290) (0.5676)
---------- ---------- ---------- -------- -------- --------
Change in net asset value.... -- (0.02) 0.11 0.02 (0.07) (0.08)
---------- ---------- ---------- -------- -------- --------
Net asset value, end of
year....................... $ 9.95 $ 9.95 $ 9.97 $ 9.86 $ 9.84 $ 9.91
========== ========== ========== ======== ======== ========
Total return................. 1.20%(a) 3.13% 6.98% 6.63% 4.73% 5.00%
Ratios/Supplemental data:
Net assets, end of year (in
000's).................. $4,425,256 $3,389,975 $2,064,844 $681,652 $877,608 $895,550
Ratio of expenses to
average net assets...... 0.45%(b) 0.45% 0.49% 0.48% 0.48% 0.49%
Ratio of net investment
income to average net
assets.................. 1.84%(b) 2.91% 5.37% 6.22% 5.34% 5.70%
Ratio of expenses to
average net assets*..... 0.72%(b) 0.75% 0.79% 0.78% 0.78% 0.79%
Portfolio turnover rate.... 48% 107% 72% 67% 51% 53%
</Table>
- --------------------------------------------------------------------------------
* During the period, certain fees were voluntarily reduced. If such voluntary
fee reductions had not occurred, the ratios would have been as indicated.
+ Net investment income is based on average shares outstanding through the
period.
(a) Not annualized.
(b) Annualized.
See notes to financial statements.
30
- --------------------------------------------------------------------------------
ASSET MANAGEMENT FUND
ULTRA SHORT FUND
FINANCIAL HIGHLIGHTS
(SELECTED DATA FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD INDICATED)
- --------------------------------------------------------------------------------
<Table>
<Caption>
SIX MONTHS
ENDED NOVEMBER 14,
APRIL 30, 2001(A) TO
2003 OCTOBER 31,
(UNAUDITED) 2002
- -----------------------------------------------------------------------------------------
Net asset value, beginning of year.......................... $ 9.95 $ 10.00
-------- --------
Income from investment operations:
Net investment income..................................... 0.0822 0.2204
Net realized and unrealized gains on investments.......... 0.0496 0.0058
-------- --------
Total from investment operations....................... 0.1318 0.2262
-------- --------
Less distributions:
Dividends paid to stockholders:
From net investment income............................. (0.1118) (0.2762)
-------- --------
Total distributions to stockholders.................. (0.1118) (0.2762)
-------- --------
Change in net asset value................................... 0.02 (0.05)
-------- --------
Net asset value, end of period.............................. $ 9.97 $ 9.95
======== ========
Total return................................................ 1.33%(b) 2.29%
Ratios/Supplemental data:
Net assets, end of period (in 000's)...................... $290,862 $287,116
Ratio of expenses to average net assets................... 0.46%(c) 0.50%
Ratio of net investment income to average net assets...... 1.64%(c) 2.11%
Ratio of expenses to average net assets*.................. 0.76%(c) 0.80%
Portfolio turnover rate................................... 56% 127%
</Table>
- --------------------------------------------------------------------------------
* During the period, certain fees were voluntarily reduced. If such voluntary
fee reductions had not occurred, the ratios would have been as indicated.
(a) Commencement of operations.
(b) Not annualized.
(c) Annualized.
See notes to financial statements.
31
- --------------------------------------------------------------------------------
ASSET MANAGEMENT FUND
SHORT U.S. GOVERNMENT FUND
FINANCIAL HIGHLIGHTS
(SELECTED DATA FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD INDICATED)
- --------------------------------------------------------------------------------
<Table>
<Caption>
SIX MONTHS
ENDED
APRIL 30, YEAR ENDED OCTOBER 31,
2003 --------------------------------------------------------
(UNAUDITED) 2002 2001 2000 1999 1998
- -----------------------------------------------------------------------------------------------------------
Net asset value, beginning of
year............................ $ 10.78 $ 10.75 $ 10.34 $ 10.36 $ 10.66 $ 10.55
-------- -------- -------- -------- -------- --------
Income from investment operations:
Net investment income........... 0.1471 0.3512 0.5652 0.5973 0.5600 0.6144
Net realized and unrealized
gains (losses) from
investments.................. 0.0069 0.0674 0.4086 (0.0240) (0.3000) 0.1100
-------- -------- -------- -------- -------- --------
Total from investment
operations................. 0.1540 0.4186 0.9738 0.5733 0.2600 0.7244
-------- -------- -------- -------- -------- --------
Less distributions:
Dividends paid to stockholders:
From net investment income... (0.1640) (0.3886) (0.5638) (0.5976) (0.5600) (0.6144)
-------- -------- -------- -------- -------- --------
Change in net asset value......... (0.01) 0.03 0.41 (0.02) (0.30) 0.11
-------- -------- -------- -------- -------- --------
Net asset value, end of year...... $ 10.77 $ 10.78 $ 10.75 $ 10.34 $ 10.36 $ 10.66
======== ======== ======== ======== ======== ========
Total return...................... 1.44%(a) 3.98% 9.66% 5.77% 2.51% 7.08%
Ratios/Supplemental data:
Net assets, end of year (in
000's)....................... $200,356 $162,170 $191,632 $ 96,098 $114,840 $114,240
Ratio of expenses to average net
assets....................... 0.48%(b) 0.49% 0.51% 0.51% 0.49% 0.50%
Ratio of net investment income
to average net assets........ 2.72%(b) 3.35% 5.25% 5.79% 5.35% 5.83%
Portfolio turnover rate......... 34% 75% 54% 138% 155% 84%
</Table>
- --------------------------------------------------------------------------------
(a) Not annualized.
(b) Annualized.
See notes to financial statements.
32
- --------------------------------------------------------------------------------
ASSET MANAGEMENT FUND
INTERMEDIATE MORTGAGE FUND
FINANCIAL HIGHLIGHTS
(SELECTED DATA FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD INDICATED)
- --------------------------------------------------------------------------------
<Table>
<Caption>
SIX MONTHS
ENDED
APRIL 30, YEAR ENDED OCTOBER 31,
2003 --------------------------------------------------------
(UNAUDITED) 2002 2001 2000 1999 1998
- -----------------------------------------------------------------------------------------------------------
Net asset value, beginning of
year............................ $ 9.79 $ 9.83 $ 9.33 $ 9.33 $ 9.66 $ 9.62
-------- -------- -------- -------- -------- --------
Income from investment operations:
Net investment income........... 0.1404 0.4155 0.5675 0.5754 0.5490 0.5932
Net realized and unrealized
gains (losses) from
investments.................. 0.0066 (0.0213) 0.4861 0.0051 (0.3300) 0.0761
-------- -------- -------- -------- -------- --------
Total from investment
operations................. 0.1470 0.3942 1.0536 0.5805 0.2190 0.6693
-------- -------- -------- -------- -------- --------
Less distributions:
Dividends paid to stockholders:
From net investment income... (0.1670) (0.4342) (0.5536) (0.5795) (0.5490) (0.5932)
In excess of net investment
income..................... -- -- -- -- -- (0.0361)
-------- -------- -------- -------- -------- --------
Total distributions to
stockholders............ (0.1670) (0.4342) (0.5536) (0.5795) (0.5490) (0.6293)
-------- -------- -------- -------- -------- --------
Change in net asset value......... (0.02) (0.04) 0.50 0.00 (0.33) 0.04
-------- -------- -------- -------- -------- --------
Net asset value, end of year...... $ 9.77 $ 9.79 $ 9.83 $ 9.33 $ 9.33 $ 9.66
======== ======== ======== ======== ======== ========
Total return...................... 1.51%(a) 4.13% 11.59% 6.47% 2.32% 7.18%
Ratios/Supplemental data:
Net assets, end of year (in
000's)....................... $325,452 $240,645 $204,891 $ 90,768 $101,710 $ 99,438
Ratio of expenses to average net
assets....................... 0.46%(b) 0.47% 0.50% 0.51% 0.48% 0.49%
Ratio of net investment income
to average net assets........ 2.83%(b) 4.28% 5.74% 6.25% 5.78% 6.17%
Ratio of expenses to average net
assets*...................... 0.56%(b) 0.57% 0.60% 0.61% 0.58% 0.59%
Portfolio turnover rate......... 39% 54% 47% 110% 90% 69%
</Table>
- --------------------------------------------------------------------------------
* During the period, certain fees were voluntarily reduced. If such voluntary
fee reductions had not occurred, the ratios would have been as indicated.
(a) Not annualized.
(b) Annualized
See notes to financial statements.
33
- --------------------------------------------------------------------------------
ASSET MANAGEMENT FUND
U.S. GOVERNMENT MORTGAGE FUND
FINANCIAL HIGHLIGHTS
(SELECTED DATA FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD INDICATED)
- --------------------------------------------------------------------------------
<Table>
<Caption>
SIX MONTHS
ENDED
APRIL 30, YEAR ENDED OCTOBER 31,
2003 --------------------------------------------------------
(UNAUDITED) 2002 2001 2000 1999 1998
- -----------------------------------------------------------------------------------------------------------
Net asset value, beginning of
year............................ $ 10.77 $ 10.83 $ 10.27 $ 10.26 $ 10.73 $ 10.67
-------- -------- -------- -------- -------- --------
Income from investment operations:
Net investment income........... 0.1958 0.5116 0.6381 0.6646 0.6416 0.6947
Net realized and unrealized
gains (losses) on
investments.................. 0.0417 (0.0377) 0.5590 0.0109 (0.4726) 0.0877
-------- -------- -------- -------- -------- --------
Total from investment
operations................. 0.2375 0.4739 1.1971 0.6755 0.1690 0.7824
-------- -------- -------- -------- -------- --------
Less distributions:
Dividends paid to stockholders:
From net investment income... (0.2275) (0.5339) (0.6371) (0.6682) (0.6390) (0.6947)
In excess of net investment
income..................... -- -- -- -- -- (0.0277)
-------- -------- -------- -------- -------- --------
Total distributions to
stockholders............ (0.2275) (0.5339) (0.6371) (0.6682) (0.6390) (0.7224)
-------- -------- -------- -------- -------- --------
Change in net asset value......... 0.01 (0.06) 0.56 0.01 (0.47) 0.06
-------- -------- -------- -------- -------- --------
Net asset value, end of period.... $ 10.78 $ 10.77 $ 10.83 $ 10.27 $ 10.26 $ 10.73
======== ======== ======== ======== ======== ========
Total return...................... 2.23%(a) 4.54% 11.99% 6.90% 1.63% 7.58%
Ratios/Supplemental data:
Net assets, end of period (in
000's)....................... $156,744 $ 94,154 $105,713 $ 71,449 $ 87,250 $ 80,174
Ratio of expenses to average net
assets....................... 0.46%(b) 0.47% 0.50% 0.52% 0.52% 0.53%
Ratio of net investment income
to average net assets........ 3.74%(b) 4.80% 6.09% 6.53% 6.13% 6.48%
Portfolio turnover rate......... 54% 82% 86% 127% 73% 93%
</Table>
- --------------------------------------------------------------------------------
(a) Not annualized.
(b) Annualized.
See notes to financial statements.
34
- --------------------------------------------------------------------------------
ASSET MANAGEMENT FUND
NOTES TO FINANCIAL STATEMENTS
APRIL 30, 2003 (UNAUDITED)
- --------------------------------------------------------------------------------
Asset Management Fund (the "Trust") was reorganized as a Delaware Statutory
Trust on September 30, 1999, and is registered under the Investment Company Act
of 1940, as amended (the "1940 Act"), as a diversified open-end management
company. As of April 30, 2003, the Trust is authorized to issue an unlimited
number of shares in six separate Funds, the Money Market Fund, the Adjustable
Rate Mortgage (ARM) Fund, the Ultra Short Fund, the Short U.S. Government Fund,
the Intermediate Mortgage Fund and the U.S. Government Mortgage Fund (referred
to individually as a "Fund" and collectively as the "Funds"). Each of the Funds,
except the Money Market Fund, offers a single class of shares. The Money Market
Fund is authorized to sell two classes of shares, namely, Class I Shares and
Class D Shares. Each Class I and Class D Share of the Money Market Fund
represents identical interests in the Fund and has the same rights except that
(i) Class D Shares bear a higher distribution fee, which will cause Class D
Shares to have a higher expense ratio and to pay lower dividends than those
related to Class I Shares; (ii) certain other class specific expenses will be
borne solely by the class to which such expenses are attributable; and (iii)
each class has exclusive voting rights with respect to the matters relating to
its own distribution arrangements.
A. Significant accounting policies are as follows:
SECURITY VALUATION
Money Market Fund:
Fund securities are valued under the amortized cost method, which approximates
current market value. Under this method, securities are valued at cost when
purchased and thereafter a constant proportionate amortization of any discount
or premium is recorded until maturity of the security. The Fund seeks to
maintain net asset value per share at $1.00.
Adjustable Rate Mortgage (ARM) Fund, Ultra Short Fund, Short U.S. Government
Fund, Intermediate Mortgage Fund, and U.S. Government Mortgage Fund:
For purposes of determining the net asset value per share of each Fund,
investments for which market quotations are readily available are valued at the
mean between the most recent bid and asked prices, which may be furnished by a
pricing service, at prices provided directly by market makers, or using matrix
pricing methods. Securities for which market quotations are not readily
available, and other assets, are valued at fair value using methods determined
in good faith by the Board of Trustees. Short-term instruments maturing within
60 days of the valuation date may be valued based upon their amortized cost. The
Board of Trustees will review valuation methods regularly in order to determine
their appropriateness.
REPURCHASE AGREEMENTS
Eligible Fund investments may be purchased from primary government securities
dealers or the custodian bank, subject to the seller's agreement to repurchase
them at an agreed upon date and price. Each Fund will always receive as
collateral instruments whose market value, including accrued interest, will be
at least equal to 100% of the dollar amount invested by the Fund in each
agreement, and each Fund will make payment for such instruments only upon their
physical delivery to, or evidence of their book entry transfer to the account
of, the Fund's custodian.
SECURITIES PURCHASED ON A
WHEN-ISSUED BASIS
Each Fund, except the Money Market Fund, may purchase securities on a
"when-issued" basis. When-issued securities are securities purchased for
delivery beyond the normal settlement date at a stated price and/or yield,
thereby creating
35
- --------------------------------------------------------------------------------
ASSET MANAGEMENT FUND
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
APRIL 30, 2003 (UNAUDITED)
- --------------------------------------------------------------------------------
the risk that the price and/or yield obtained may be more or less than those
available in the market when delivery takes place. A Fund records the
transaction and reflects the value of the security in determining net asset
value at the time the Fund makes the commitment to purchase a security on a
when-issued basis. Normally, the settlement date occurs within one month of the
purchase. No payment is made by the Fund, and no interest accrues to the Fund
during the period between purchase and settlement. The Fund establishes a
segregated account in which it maintains cash and marketable securities equal in
value to commitments for when-issued securities.
DIVIDENDS TO SHAREHOLDERS
Dividends from net investment income are declared daily and paid monthly. Net
short-term and long-term capital gains, if any, are declared and paid annually.
FEDERAL TAXES
No provision is made for Federal taxes as it is each Fund's intention to
continue to qualify as a regulated investment company and to make the requisite
distributions to the stockholders, which will be sufficient to relieve each Fund
from all or substantially all Federal income and excise taxes.
MANAGEMENT ESTIMATES
The preparation of financial statements in conformity with accounting
principles generally accepted in the United States of America requires
management to make estimates and assumptions that affect the reported amounts of
assets and liabilities at the date of the financial statements and the reported
amounts of revenues and expenses during the reporting period. Actual results
could differ from these estimates.
OTHER
Investment transactions are accounted for on the trade date, interest income
is recorded on the accrual basis, amortization and accretion is recognized based
on the effective maturity date, and the cost of investments sold is determined
by use of the specific identification method for both financial reporting and
income tax purposes.
B. Shay Assets Management, Inc. (SAMI) serves the Trust as investment adviser
(the "Adviser"). The Adviser is a wholly-owned subsidiary of Shay Investment
Services, Inc. (SISI), which is controlled by Rodger D. Shay, the Chairman of
the Board of Trustees of the Trust.
As compensation for investment advisory services, the Fund pays an investment
advisory fee monthly based upon an annual percentage of the average daily net
assets of each Fund as follows:
The investment advisory fee rate for the Money Market Fund is .15% of the
first $500 million, .125% of the next $500 million, and .10% of such net assets
in excess of $1 billion.
The investment advisory fee rate for the Adjustable Rate Mortgage (ARM) Fund
is .45% of the first $3 billion, .35% of the next $2 billion, and .25% of such
net assets in excess of $5 billion. The Adviser is currently voluntarily waiving
a portion of its fee so that the Fund pays .25% of average daily net assets.
The investment advisory fee rate for the Ultra Short Fund is .45% of the
average daily net assets. The Adviser is currently voluntarily waiving a portion
of its fee so that the Fund pays .25% of average daily net assets.
The investment advisory fee rate for each of the Short U.S. Government Fund
and the U.S. Government Mortgage Fund, computed separately, is .25% of the first
$500 million, .175% of the next $500 million, .125% of the next $500 million,
and .10% of such net asset in excess of $1.5 billion.
36
- --------------------------------------------------------------------------------
ASSET MANAGEMENT FUND
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
APRIL 30, 2003 (UNAUDITED)
- --------------------------------------------------------------------------------
The investment advisory fee rate for the Intermediate Mortgage Fund is .35% of
the first $500 million, .275% of the next $500 million, .20% of the next $500
million, and .10% of such net assets in excess of $1.5 billion. The Adviser is
currently voluntarily waiving a portion of its fee so that the Fund pays .25% of
average daily net assets.
The Adviser has agreed to reduce or waive (but not below zero) its advisory
fees charged to the Money Market Fund, the Short U.S. Government Fund, the
Intermediate Mortgage Fund and the U.S. Government Mortgage Fund, to the extent
that the daily ratio of operating expenses to average daily net assets of each
Fund exceeds .75%.
Shay Financial Services, Inc. (SFSI) serves the Trust as distributor (the
"Distributor"). The Distributor is a wholly-owned subsidiary of SISI, which is
controlled by Rodger D. Shay, the Chairman of the Board of Trustees of the
Trust.
As compensation for distribution services, the Trust pays the Distributor a
distribution fee monthly in accordance with the distribution plan adopted by the
Trust, pursuant to Rule 12b-1 under the 1940 Act, based upon an annual
percentage of the average daily net assets of each fund as follows:
The distribution fee rate for each of the Money Market Fund Class I Shares and
Short U.S. Government Fund is based upon an annual percentage of the combined
average daily net assets of both funds and is as follows: .15% of the first $500
million, .125% of the next $500 million, .10% of the next $1 billion, and .075%
of such combined net assets in excess of $2 billion. The Distributor is
currently voluntarily waiving its entire 12b-1 fee for the Class I Shares of the
Money Market Fund. The Money Market distribution fee waiver amounted to $25,321
for Class I Shares for the period ended April 30, 2003.
The distribution fee rate for the Money Market Class D Shares is .60% of
average daily net assets. The Distributor is currently voluntarily waiving a
portion of the 12b-1 fees so that Total Fund Operating Expenses do not exceed
0.75% of average daily net assets. The Money Market distribution fee waiver
amounted to $7,933 for Class D Shares for the period ended April 30, 2003.
The distribution fee rate for the Adjustable Rate Mortgage (ARM) Fund and the
Ultra Short Fund, computed separately, is .25% of average daily net assets. The
Distributor is currently voluntarily waiving a portion of its fee so that the
Fund pays .15% of average daily net assets for the Adjustable Rate Mortgage
(ARM) Fund and the Ultra Short Fund.
The distribution fee rate for each of the Intermediate Mortgage Fund and the
U.S. Government Mortgage Fund, computed separately, is as follows: .15% of the
first $500 million, .125% of the next $500 million, .10% of the next $500
million, and .075% of such net assets in excess of $1.5 billion.
BISYS Fund Services Ohio, Inc. ("BISYS, Ohio"), serves the Trust as
administrator (the "Administrator") and transfer agent (the "Transfer Agent").
BISYS, Ohio is a subsidiary of The BISYS Group, Inc. The administration fee rate
for each of the Funds, computed separately, is as follows: .03% of the first $1
billion, .02% of the next $1 billion, and .01% of such net assets in excess of
$2 billion.
As compensation, the Trust pays the Transfer Agent, a monthly fee, in
accordance with the Transfer Agency plan adopted by the Trust.
37
- --------------------------------------------------------------------------------
ASSET MANAGEMENT FUND
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
APRIL 30, 2003 (UNAUDITED)
- --------------------------------------------------------------------------------
C. Transactions in shares of the Trust for the periods ended April 30, 2003 and
October 31, 2002, were as follows:
- --------------------------------------------------------------------------------
<Table>
<Caption>
MONEY MARKET FUND
------------------------------------
SIX MONTHS ENDED YEAR ENDED
APRIL 30, 2003 OCTOBER 31, 2002
- ----------------------------------------------------------------------------------------------------
Share transactions Class I:
Sale of shares............................................ 141,663,301 348,087,003
Shares issued to stockholders in reinvestment dividends... 177,255 648,460
Shares repurchased........................................ (149,128,137) (363,655,739)
------------ ------------
Net increase (decrease)................................... (7,287,581) (14,920,276)
Shares outstanding
Beginning of period.................................... 30,581,908 45,502,184
------------ ------------
End of period.......................................... 23,294,327 30,581,908
============ ============
Share transactions Class D:
Sale of shares............................................ 98,438,599 127,098,202
Shares issued to stockholders in reinvestment dividends... 23,323 47,264
Shares repurchased........................................ (90,550,180) (120,893,245)
------------ ------------
Net increase.............................................. 7,911,742 6,252,221
Shares outstanding
Beginning of period.................................... 15,039,539 8,787,318
------------ ------------
End of period.......................................... 22,951,280 15,039,539
============ ============
</Table>
- --------------------------------------------------------------------------------
<Table>
<Caption>
ADJUSTABLE RATE MORTGAGE
(ARM) PORTFOLIO ULTRA SHORT FUND
-------------------------------------------------------------------------------
SIX MONTHS SIX MONTHS
ENDED YEAR ENDED ENDED PERIOD ENDED
APRIL 30, 2003 OCTOBER 31, 2002 APRIL 30, 2003 OCTOBER 31, 2002*
- ---------------------------------------------------------------------------------------------------------------------
Share transactions:
Sale of shares.................. 275,709,308 347,597,471 12,561,605 49,486,088
Shares issued to stockholders in
reinvestment of dividends.... 3,155,442 5,397,406 187,787 330,998
Shares repurchased.............. (174,745,046) (219,444,526) (12,410,832) (20,969,810)
------------ ------------ ----------- -----------
Net increase (decrease)......... 104,119,704 133,550,351 338,560 28,847,276
Shares outstanding
Beginning of period.......... 340,612,639 207,062,288 28,847,277 1.00
------------ ------------ ----------- -----------
End of period................ 444,732,343 340,612,639 29,185,837 28,847,277
============ ============ =========== ===========
</Table>
- --------------------------------------------------------------------------------
* Period from November 14, 2001 (commencement of operations) to October 31,
2002.
38
- --------------------------------------------------------------------------------
ASSET MANAGEMENT FUND
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
APRIL 30, 2003 (UNAUDITED)
- --------------------------------------------------------------------------------
<Table>
<Caption>
SHORT U.S. GOVERNMENT FUND INTERMEDIATE MORTGAGE FUND
------------------------------------------------------------------------------
SIX MONTHS SIX MONTHS
ENDED YEAR ENDED ENDED YEAR ENDED
APRIL 30, 2003 OCTOBER 31, 2002 APRIL 30, 2003 OCTOBER 31, 2002
- ---------------------------------------------------------------------------------------------------------------------
Share transactions:
Sale of shares................... 7,317,688 14,219,122 20,953,818 22,226,248
Shares issued to stockholders in
reinvestment of dividends..... 142,640 384,872 185,154 409,090
Shares repurchased............... (3,900,445) (17,388,766) (12,421,596) (18,892,803)
---------- ----------- ----------- -----------
Net increase (decrease).......... 3,559,883 (2,784,772) 8,717,376 3,742,535
Shares outstanding
Beginning of period........... 15,043,687 17,828,459 24,588,774 20,846,239
---------- ----------- ----------- -----------
End of period................. 18,603,570 15,043,687 33,306,150 24,588,774
========== =========== =========== ===========
</Table>
- --------------------------------------------------------------------------------
<Table>
<Caption>
U.S. GOVERNMENT MORTGAGE FUND
------------------------------------
SIX MONTHS
ENDED YEAR ENDED
APRIL 30, 2003 OCTOBER 31, 2002
- ----------------------------------------------------------------------------------------------------
Share transactions:
Sale of shares............................................ 12,070,698 4,399,610
Shares issued to stockholders in reinvestment of
dividends.............................................. 142,784 274,729
Shares repurchased........................................ (6,414,775) (5,693,438)
---------- ----------
Net increase (decrease)................................... (5,798,707) (1,019,099)
Shares outstanding
Beginning of period.................................... 8,739,167 9,758,266
---------- ----------
End of period.......................................... 14,537,875 8,739,167
========== ==========
</Table>
- --------------------------------------------------------------------------------
39
- --------------------------------------------------------------------------------
ASSET MANAGEMENT FUND
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
APRIL 30, 2003 (UNAUDITED)
- --------------------------------------------------------------------------------
D. At April 30, 2003, Net Assets consisted of the following:
- --------------------------------------------------------------------------------
<Table>
<Caption>
ADJUSTABLE RATE SHORT U.S.
MONEY MARKET MORTGAGE (ARM) ULTRA SHORT GOVERNMENT INTERMEDIATE U.S. GOVERNMENT
FUND FUND FUND FUND MORTGAGE FUND MORTGAGE FUND
- --------------------------------------------------------------------------------------------------------------------------
Capital.............. $46,248,808 $4,428,423,049 $291,541,184 $200,963,095 $327,612,809 $156,881,850
Accumulated net
investment
income/(loss)...... -- (14,723,659) (887,741) (271,250) (978,764) (95,164)
Accumulated net
realized
gain/(loss)........ (14,744) (12,376,570) (1,187,518) (4,139,010) (7,410,033) (4,417,265)
Net unrealized
appreciation/
(depreciation) of
investments........ -- 23,933,106 1,396,366 3,803,585 6,228,197 4,374,130
----------- -------------- ------------ ------------ ------------ ------------
$46,234,064 $4,425,255,926 $290,862,291 $200,356,420 $325,452,209 $156,743,551
=========== ============== ============ ============ ============ ============
</Table>
- --------------------------------------------------------------------------------
E. At April 30, 2003, liabilities for the Funds included:
- --------------------------------------------------------------------------------
<Table>
<Caption>
ADJUSTABLE
RATE
MORTGAGE SHORT U.S. INTERMEDIATE
MONEY MARKET (ARM) ULTRA SHORT GOVERNMENT MORTGAGE U.S. GOVERNMENT
FUND FUND FUND FUND FUND MORTGAGE FUND
- -----------------------------------------------------------------------------------------------------------------------
Investment advisory fee
payable.................. 6,304 928,338 61,997 41,877 69,693 35,941
Administration fee
payable.................. 124 6,137 717 501 801 388
Distribution fee payable... 8,338 557,005 37,199 25,126 41,816 21,565
Distributions payable...... 31,722 7,957,399 503,585 464,092 813,278 573,088
Other liabilities.......... 15,871 422,251 30,287 35,517 23,721 16,562
</Table>
- --------------------------------------------------------------------------------
F. For the six months ended April 30, 2003, purchases and proceeds from
sales/maturities of securities, other than short-term investments, were as
follows:
- --------------------------------------------------------------------------------
<Table>
<Caption>
ADJUSTABLE RATE SHORT U.S. U.S. GOVERNMENT
MORTGAGE (ARM) ULTRA SHORT GOVERNMENT INTERMEDIATE MORTGAGE
FUND FUND FUND MORTGAGE FUND FUND
- ------------------------------------------------------------------------------------------------------------
Purchases............... $2,612,308,570 $174,396,015 $92,546,751 $189,092,491 $124,416,974
============== ============ =========== ============ ============
Sales and Maturities.... $1,254,594,663 $141,042,683 $55,115,276 $106,168,601 $ 65,245,130
============== ============ =========== ============ ============
</Table>
- --------------------------------------------------------------------------------
40
- --------------------------------------------------------------------------------
ASSET MANAGEMENT FUND
TRUSTEES AND OFFICERS OF ASSET MANAGEMENT FUND
Officers and Interested Trustees. The table below sets forth certain information
about each of the Trust's Interested Trustees, as well as its officers.
- --------------------------------------------------------------------------------
<Table>
<Caption>
NUMBER OF
PORTFOLIOS
POSITION(S) TERM OF OFFICE; IN FUND OTHER
HELD TERM SERVED PRINCIPAL OCCUPATION(S) COMPLEX DIRECTORSHIPS(1)
NAME, ADDRESS AND AGE WITH TRUST IN OFFICE DURING PAST 5 YEARS OVERSEEN HELD
- ----------------------------------------------------------------------------------------------------------------------------------
Richard M. Amis.............. Trustee Indefinite President, First Federal 6 None
630 Clarksville Street Community Bank since 1984;
Paris, TX 75460 Director, First Financial
Age: 52 Trust Company
Arthur G. De Russo........... Trustee Indefinite Retired; Chief Executive 6 None
5397 S.E. Major Way Officer, Eastern Financial
Stuart, FL 34997 Federal Credit Union Trust
Age: 81 Co., Inc. from 1974 to 1992
David F. Holland............. Trustee Indefinite Chairman of the Board, Chief 7 M.S.B. Fund, Inc.
17 New England Executive Park Executive Officer and
Burlington, MA 01803 President of BostonFed
Age: 61 Bancorp Inc.
William A. McKenna, Jr. ..... Trustee Indefinite Chairman and Chief Executive 8 M.S.B. Fund, Inc.;
890 Village Green Officer Ridgewood Savings Asset Management Fund
Westfield, NJ 07090 Bank Large Capital Equity
Age: 66 Institutional Fund,
Inc.
Rodger D. Shay, Jr. ......... Trustee Indefinite President, Shay Financial 6 None
1000 Brickell Avenue Services, Inc. since 1997.
Miami, FL 33131
Age: 43
Gerald J. Levy............... Trustee and Indefinite Chairman and Chief Executive 6 None
4000 W. Brown Deer Road Vice Chairman Officer, Guaranty Bank,
Milwaukee, WI 53209 F.S.B. since 1984
Age: 71
Rodger D. Shay, Sr. ......... Trustee and Indefinite Chairman and Director of Shay 7 M.S.B. Fund, Inc.
1000 Brickell Avenue Chairman Assets Management, Inc. since
Miami, FL 33131 August 1997
Age: 66
Edward E. Sammons, Jr. ...... President Indefinite President of Shay Assets None
230 West Monroe Street Management, Inc. since August
Chicago, IL 60606 1997
Age: 63
Robert T. Podraza............ Vice Indefinite Vice President of Shay Assets None
230 West Monroe Street President and Management, Inc. since 1990
Chicago, IL 60606 Assistant
Age: 58 Treasurer
</Table>
41
- --------------------------------------------------------------------------------
ASSET MANAGEMENT FUND
TRUSTEES AND OFFICERS OF ASSET MANAGEMENT FUND (CONTINUED)
<Table>
<Caption>
NUMBER OF
PORTFOLIOS
POSITION(S) TERM OF OFFICE; IN FUND OTHER
HELD TERM SERVED PRINCIPAL OCCUPATION(S) COMPLEX DIRECTORSHIPS(1)
NAME, ADDRESS AND AGE WITH TRUST IN OFFICE DURING PAST 5 YEARS OVERSEEN HELD
- ----------------------------------------------------------------------------------------------------------------------------------
Trent M. Statczar............ Treasurer Indefinite Financial Services Director, None
3435 Stelzer Road BISYS Since September 2000;
Columbus, OH 43219 Financial Services Manager,
Age: 31 January 1998 to September
2000; Financial Services
Assoc. Manager, November 1997
to January 1998
Daniel K. Ellenwood.......... Secretary Indefinite Secretary of the Fund since None
230 West Monroe Street April 1998; Operations
Chicago, IL 60606 Manager, Shay Assets
Age: 34 Management, Inc. since
November 1997
Christine A. Cwik............ Assistant Indefinite Executive Secretary, Shay None
230 West Monroe Street Secretary Assets Management, Inc. since
Chicago, IL 60606 February 1997
Age: 53
Alaina V. Metz............... Assistant Indefinite Vice President, BISYS Since None
3435 Stelzer Road Secretary and January 2002; Chief Admin,
Columbus, OH 43219 Assistant Officer June 1995 to January
Age: 36 Treasurer 2002
</Table>
- --------------------------------------------------------------------------------
(1) Directorships held in (A) any other investment companies registered under
the 1940 Act, (B) any company with a class of securities registered pursuant
to Section 12 of the Securities Exchange Act of 1934, as amended (the
"Exchange Act") or (C) any company subject to the requirements of Section
15(d) of the Exchange Act.
42
ASSET MANAGEMENT FUND
SHAY FINANCIAL SERVICES, INC.
NOTICE OF PRIVACY POLICY & PRACTICES
Asset Management Fund ("AMF") and Shay Financial Services, Inc., the
distributor of the Fund, ("Shay") recognize and respect the privacy expectations
of our shareholders. We do not sell information about current or former
customers or their accounts to third parties. We provide this notice to you so
that you will know what kinds of information we collect about shareholders of
the Fund and the circumstances in which that information may be disclosed.
COLLECTION OF CUSTOMER INFORMATION
We collect nonpublic personal information about our shareholders from the
following sources:
- Account Applications, shareholder profiles and other forms, which may
include a shareholder's name, address, social security number, and
information about a shareholder's investment goals and risk tolerance
- Account History, for example, copies of confirmations or statements which
may include information about investment transactions or the balances in a
shareholder's account
- Correspondence, written, telephonic or electronic between a shareholder and
AMF or Shay
DISCLOSURE OF CUSTOMER INFORMATION
We will not disclose any of the shareholder information we collect to third
parties who are not affiliated with the Fund or Shay other than to:
- to effect or administer transactions at your request
- as permitted by law -- for example, to service providers to the Fund, in
connection with an audit or examination, or to respond to a subpoena or
similar legal process
Shay may disclose any of the shareholder information it collects to its
affiliates that are engaged in a variety of financial services businesses, both
in connection with the servicing of customer accounts and to inform clients of
financial products and services that might be of interest.
SECURITY OF CUSTOMER INFORMATION
We maintain policies and procedures designed to assure only appropriate access
to, and use of shareholder information and physical, electronic and procedural
safeguards to protect nonpublic personal information of our shareholders. And we
require service providers to the Fund to maintain similar policies and
procedures.
We will adhere to the policies and practices described in this notice
regardless of whether you are a current or former shareholder of the Fund.
43
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
GENERAL INFORMATION
- --------------------------------------------------------------------------------
For general information about any of the Portfolios offered by Asset Management
Fund including fees and expenses, please send for a prospectus and read it
carefully before you invest.
SHAY FINANCIAL SERVICES, INC.
230 West Monroe Street/Chicago, IL 60606
800-527-3713
1000 Brickell Avenue/Miami, FL 33131
800-327-6190
83 East Avenue/Norwalk, CT 06851
800-456-8232
8500 Freeport Parkway South, Irving TX 75063
800-442-9825
1000 Stonewood Drive/Wexford, PA 15090
800-224-5177
350 Springfield Avenue/Summit, NJ 07901
800-553-6159
- --------------------------------------------------------------------------------
ACCOUNT INFORMATION
- --------------------------------------------------------------------------------
To obtain performance data and place purchase orders, call toll free
800-527-3713.
NOTES
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
DISTRIBUTOR
Shay Financial Services, Inc.
230 West Monroe Street
Chicago, IL 60606
INVESTMENT ADVISER
Shay Assets Management, Inc.
230 West Monroe Street
Chicago, IL 60606
ADMINISTRATOR AND TRANSFER AGENT
BISYS Fund Services Ohio, Inc.
3435 Stelzer Road
Columbus, OH 43219
LEGAL COUNSEL
Vedder, Price, Kaufman & Kammholz
222 North LaSalle Street
Chicago, IL 60601
CUSTODIAN
The Bank of New York
100 Church Street, 10th Fl.
New York, NY 10286
INDEPENDENT ACCOUNTANTS
PricewaterhouseCoopers LLP
Two Commerce Square
Philadelphia, PA 19103
ITEM 2. CODE OF ETHICS.
(a) Disclose whether, as of the end of the period covered by the report, the
registrant has adopted a code of ethics that applies to the registrant's
principal executive officer, principal financial officer, principal accounting
officer or controller, or persons performing similar functions, regardless of
whether these individuals are employed by the registrant or a third party. If
the registrant has not adopted such a code of ethics, explain why it has not
done so. ONLY EFFECTIVE FOR ANNUAL REPORTS WITH PERIODS ENDING ON OR AFTER JULY
15, 2003.
ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT.
(a) (1) Disclose that the registrant's board of directors has
determined that the registrant either:
(i) Has at least one audit committee financial expert serving
on its audit committee; or
(ii) Does not have an audit committee financial expert serving
on its audit committee.
(2) If the registrant provides the disclosure required by
paragraph (a)(1)(i) of this Item, it must disclose the name of the
audit committee financial expert and whether that person is
"independent." In order to be considered "independent" for
purposes of this Item, a member of an audit committee may not,
other than in his or her capacity as a member of the audit
committee, the board of directors, or any other board committee:
(i) Accept directly or indirectly any consulting, advisory,
or other compensatory fee from the issuer; or
(ii) Be an "interested person" of the investment company as
defined in Section 2(a)(19) of the Act (15 U.S.C. 80a-
2(a)(19)).
(3) If the registrant provides the disclosure required by
paragraph (a)(1)(ii) of this Item, it must explain why it does not
have an audit committee financial expert.
ONLY EFFECTIVE FOR ANNUAL REPORTS WITH PERIODS ENDING ON OR AFTER JULY 15, 2003.
ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.
(a) Disclose, under the caption Audit Fees, the aggregate fees billed
for each of the last two fiscal years for professional services rendered by the
principal accountant for the audit of the registrant's annual financial
statements or services that are normally provided by the accountant in
connection with statutory and regulatory filings or engagements for those fiscal
years.
(b) Disclose, under the caption Audit-Related Fees, the aggregate fees
billed in each of the last two fiscal years for assurance and related services
by the principal accountant that are reasonably related to the performance of
the audit of the registrant's financial statements and are not reported under
paragraph (a) of this Item. Registrants shall describe the nature of the
services comprising the fees disclosed under this category.
(c) Disclose, under the caption Tax Fees, the aggregate fees billed in
each of the last two fiscal years for professional services rendered by the
principal accountant for tax compliance, tax advice, and tax planning.
Registrants shall describe the nature of the services comprising the fees
disclosed under this category.
(d) Disclose, under the caption All Other Fees, the aggregate fees
billed in each of the last two fiscal years for products and services provided
by the principal accountant, other than the services reported in paragraphs (a)
through (c) of this Item. Registrants shall describe the nature of the services
comprising the fees disclosed under this category.
(e) (1) Disclose the audit committee's pre-approval policies and
procedures described in paragraph (c)(7) of Rule 2-01 of Regulation S-X.
(2) Disclose the percentage of services described in each of
paragraphs (b) through (d) of this Item that were approved by the audit
committee pursuant to paragraph (c)(7)(i)(C) of Rule 2-01 of Regulation S-X.
(f) If greater than 50 percent, disclose the percentage of hours
expended on the principal accountant's engagement to audit the registrant's
financial statements for the most recent fiscal year that were attributed to
work performed by persons other than the principal accountant's full-time,
permanent employees.
(g) Disclose the aggregate non-audit fees billed by the registrant's
accountant for services rendered to the registrant, and rendered to the
registrant's investment adviser (not including any sub-adviser whose role is
primarily portfolio management and is subcontracted with or overseen by another
investment adviser), and any entity controlling, controlled by, or under common
control with the adviser that provides ongoing services to the registrant for
each of the last two fiscal years of the registrant.
(h) Disclose whether the registrant's audit committee of the board of
directors has considered whether the provision of nonaudit services that were
rendered to the registrant's investment adviser (not including any subadviser
whose role is primarily portfolio management and is subcontracted with or
overseen by another investment adviser), and any entity controlling, controlled
by, or under common control with the investment adviser that provides ongoing
services to the registrant that were not pre-approved
2
pursuant to paragraph (c)(7)(ii) of Rule 2-01 of Regulation S-X is compatible
with maintaining the principal accountant's independence.
ONLY EFFECTIVE FOR ANNUAL REPORTS WITH PERIODS ENDING ON OR AFTER DECEMBER 15,
2003.
ITEMS 5-6. [RESERVED]
ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END
MANAGEMENT INVESTMENT COMPANIES.
A closed-end management investment company that is filing an annual
report on this Form N-CSR must, unless it invests exclusively in non-voting
securities, describe the policies and procedures that it uses to determine how
to vote proxies relating to portfolio securities, including the procedures that
the company uses when a vote presents a conflict between the interests of its
shareholders, on the one hand, and those of the company's investment adviser;
principal underwriter; or any affiliated person (as defined in Section 2(a)(3)
of the Investment Company Act of 1940 (15 U.S.C. 80a-2(a)(3)) and the rules
thereunder) of the company, its investment adviser, or its principal
underwriter, on the other. Include any policies and procedures of the company's
investment adviser, or any other third party, that the company uses, or that are
used on the company's behalf, to determine how to vote proxies relating to
portfolio securities. NOT APPLICABLE.
ITEM 8. [RESERVED]
ITEM 9. CONTROLS AND PROCEDURES.
(a) The certifying officers, whose certifications are included herewith, have
evaluated the registrant's disclosure controls and procedures within 90 days of
the filing date of this report. In their opinion, based on their evaluation, the
registrant's disclosure controls and procedures are adequately designed, and are
operating effectively to ensure, that material information relating to the
registrant, including its consolidated subsidiaries, is made known to them by
others within those entities, particularly during the period in which this
report is being prepared. Further, in their opinion, the registrant's disclosure
controls and procedures are adequately designed, and are operating effectively
to ensure, that information required to be disclosed by the registrant in the
reports it files or submits under the Securities Exchange Act of 1934 is
recorded, processed, summarized and reported within the time periods specified
in the Securities and Exchange Commission's rules and forms.
(b) There are no significant deficiencies or material weaknesses in the
registrant's internal controls as of the date of their most recent evaluation,
and there have been no significant changes in the registrant's internal controls
or in other factors that could significantly affect these controls subsequent to
the date of the most recent evaluation.
ITEM 10. EXHIBITS.
File the exhibits listed below as part of this Form. Letter or number
the exhibits in the sequence indicated.
(a) Any code of ethics, or amendment thereto, that is the subject of
the disclosure required by Item 2, to the extent that the registrant intends to
satisfy the Item 2 requirements through filing of an exhibit.
(b) A separate certification for each principal executive officer and
principal financial officer of the registrant as required by Rule 30a-2 under
the Act (17 CFR 270.30a-2) in the exact form set forth below:
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.
(Registrant) Asset Management Fund
-----------------------------------------------------------------------------------------------
By (Signature and Title)* /s/ Trent M. Statczar Trent M. Statczar, Treasurer
----------------------------------------------------------------------------------
Date June 18, 2003
------------------
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.
By (Signature and Title)* /s/ Trent M. Statczar Trent M. Statczar, Treasurer
----------------------------------------------------------------------------------
Date June 18, 2003
------------------
By (Signature and Title)* /s/ Edward E. Sammons, Jr. Edward E. Sammons, Jr., President
----------------------------------------------------------------------------------
Date June 18, 2003
-----------------
* Print the name and title of each signing officer under his or her signature.
3