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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, 2004
Date of reporting period: October 31, 2004
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.
ANNUAL REPORT
OCTOBER 31, 2004
CHAIRMAN'S MESSAGE
Dear Shareholder:
The Asset Management Fund (AMF) family of no-load institutional mutual funds
is pleased to present to shareholders the 2004 Annual Report. This period marked
the first fiscal year since 1999 that rising interest rates decreased the market
value of all U.S. Treasury benchmark securities with maturities less than 10
years. Despite this decline, all AMF mutual fund portfolios generated positive
total returns for the year.
The Asset Management Fund continues to distinguish itself as a fund complex
designed specifically to comply with the federal regulatory guidelines
applicable to the shareholders for whom the Funds' investment objectives and
strategies were initially created: national banks, federal savings associations,
and federal credit unions. Additionally, several of the Funds are managed to
maintain their AAAf credit quality status by Standard & Poor's. Furthermore, for
our shareholders subject to the oversight of their respective state insurance
commissioners, it is important that the Adjustable Rate Mortgage (ARM) Fund and
Ultra Short Fund continue to be managed in such a way that supports their
continued inclusion on the National Association of Insurance Commissioners
(NAIC) List of Approved Mutual Funds.
The Funds' combination of investment strategies has fostered a growing
interest from an ever-increasing universe of investors, which now includes
municipalities, endowments, foundations, and pension plans. Many such
institutions are subject to investment policies that share a similar set of
guidelines emphasizing high quality, liquid securities.
As chairman of the Board of Trustees, I am pleased to convey that each member
of the Board has invested more of their personal assets in the Funds than they
received in annual compensation from the Funds. Moreover, many of the Adviser's
key personnel have opted to invest in the Funds through their defined
contribution retirement accounts and personal investment accounts.
Given the current landscape of the mutual fund industry, it is critical to
note that beyond current or proposed regulation and tantamount to any internal
policies or controls, the most important attribute of the entity responsible for
managing your wealth is the integrity of the people to whom you've assigned this
role. Given my personal involvement in the recruitment and oversight of the
individuals involved in investing the Funds' assets, it is my unwavering
conviction that there is no better entity with which to place your trust. I am
confident that you feel the same.
Sincerely,
/s/ Rodger D. Shay
Rodger D. Shay
Chairman
Asset Management Fund
This report has been prepared for the information of the shareholders of the
Asset Management Fund and must be preceded or accompanied by a prospectus. It is
not to be construed as an offering to sell or buy any shares of the Fund. Such
an offering is made only by the prospectus.
EXHIBIT I
SEASONALLY ADJUSTED CHANGE IN NON-FARM PAYROLLS
Source: U.S. Bureau of Labor Statistics
(BAR CHART)
<Table>
<Caption>
NON-FARM PAYROLLS CHANGE IN NON-FARM PAYROLLS 6 MONTH MOVING AVERAGE
- ----------------- --------------------------- ----------------------
Nov-03 83 26
Dec-03 8 29
Jan-04 159 63
Feb-04 83 81
Mar-04 353 129
Apr-04 324 168
May-04 208 189
Jun-04 96 204
Jul-04 85 192
Aug-04 198 211
Sep-04 119 172
Oct-04 303 168
</Table>
EXHIBIT II
U.S. TREASURY YIELD CURVE
Source: Bloomberg
(LINE GRAPH)
<Table>
<Caption>
10/31/03 10/29/04
-------- --------
3m 0.948 1.894
6m 1.032 2.12
2y 1.818 2.548
3y 2.24 2.761
5y 3.242 3.282
10y 4.293 4.023
30y 5.131 4.789
</Table>
- --------------------------------------------------------------------------------
ASSET MANAGEMENT FUND REVIEW
As we look back over the fiscal year ended October 31, 2004, the bond market
was witness to continued expansion of the domestic U.S. economy and the first
Federal Open Market Committee (FOMC) tightening of monetary policy in five
years. Driven primarily by improving labor markets and a resurgence in capital
spending, the FOMC appears to be committed to its stated course. Indeed, after
losing an average of 40,000 jobs per month through the preceding twelve months,
employers started to hire workers and added, on average, a total of 160,000 jobs
per month during the fiscal year ended October 31, 2004 (Exhibit I).
As is customary when the FOMC has tightened monetary policy, the U.S. Treasury
yield curve flattened. Interest rates rose on securities with maturities five
years or less, with yields beyond the five-year sector actually falling (See
Exhibit II). Generally speaking, those strategies implemented to capitalize on a
flatter yield curve were big winners during the year. Additionally, securities
with coupons indexed to short-term market rates were also beneficiaries of a
FOMC committed to a measured removal of monetary policy accommodation.
In the paragraphs that follow, we will discuss asset allocation shifts in each
of the funds during the fiscal year ended October 31, 2004.
- --------------------------------------------------------------------------------
Portfolio composition is subject to change.
PAST PERFORMANCE IS NOT PREDICTIVE OF FUTURE RESULTS. Investment return and
net asset value will fluctuate so that an investor's shares, when redeemed,
may be worth more or less than the original cost.
- --------------------------------------------------------------------------------
ASSET MANAGEMENT FUND REVIEW
THE ADJUSTABLE RATE MORTGAGE (ARM) FUND - Throughout the year, the portfolio
maintained its defensive positioning in an effort to mitigate the effects of a
potential rise in interest rates. As rates continued their downward trend in
early 2004, the Adviser increased the Fund's allocation to securities indexed to
the 6 Month London Interbank Offer Rate (LIBOR), from 32% to 41%, while focusing
primarily on structures lacking interim rate caps. The increased weighting was
largely funded by the sale of GNMA ARMs, which were impaired by periodic rate
caps, and contain coupons that reset only once per year. While the Fund's 5%
allocation to 11th District Cost of Funds Index (COFI) ARM securities was
initially considered a candidate for liquidation, it was decided that changes in
the make-up of the COFI index were likely to make the index more responsive to
changing rates than in the past. Therefore, we decided to maintain our position
in the COFI securities. This assessment is still awaiting confirmation.
In retrospect, the shift from GNMA ARMs to LIBOR-based ARMs represented the
most significant strategic rebalancing implemented during the year, and proved
to be the most beneficial to the Fund's performance.
As the Fed began tightening, LIBOR-based bonds were among the quickest to
respond to rising interest rates given the greater frequency with which coupon
resets occurred. These securities' faster resets also served to mitigate
downward pressure on their market value that otherwise would have accompanied by
a rise in prevailing rates. The Fund's return for the 12 month period ended
October 31, 2004 was 1.79%.
THE ULTRA SHORT FUND - The Fund continued the process of shifting exposure
towards faster resetting securities as these cash flows were well positioned for
the likelihood of higher interest rates and a flatter yield curve. This strategy
was borne out of the opinion that improving labor markets and stronger domestic
economic activity would hasten the FOMC to begin the process of monetary policy
accommodation removal. Indeed, the yield curve flattened with market rates
rising from cash to the five-year maturity sector and with yields out 10 years
or more falling over the twelve months ended October 31, 2004.
The largest asset allocation shift increased exposure to adjustable rate
mortgages (ARMs) from 67% to 84% of the portfolio during the fiscal year. As
periodic cap and coupon roll schedules were the key duration drivers for ARMs,
we endeavored to both reduce exposure to low periodic caps and increase
commitment to securities with monthly coupon resets. Toward that end, the Fund
eliminated its 8% exposure to lower coupon GNMA ARMs as they possessed a low, 1%
periodic rate cap and reset slowly with coupon changes occurring on one day,
every twelve months. Additionally, the Fund increased allocation to AAA rated,
six-month LIBOR ARMs as these investments had no periodic rate caps and reset at
six month intervals.
- --------------------------------------------------------------------------------
Portfolio composition is subject to change.
PAST PERFORMANCE IS NOT PREDICTIVE OF FUTURE RESULTS. Investment return and
net asset value will fluctuate so that an investor's shares, when redeemed,
may be worth more or less than the original cost.
- --------------------------------------------------------------------------------
ASSET MANAGEMENT FUND REVIEW
We selectively added seasoned, one year Constant Maturity Treasury (CMT)
Agency ARMs which possessed relatively high, periodic (2%) and life rate caps
and monthly coupon resets. Additionally, exposure to short, AAA rated sequential
investments created from long resetting, Hybrid ARM collateral (7/1 and 10/1)
were increased during the fiscal year providing incremental yield spread to
short, agency CMOs having no periodic rate caps. The Fund also increased its
position in AAA rated, 3/1 Hybrid ARMs with 30 or more months to rate reset as
they offered both yield spread to short, fixed rate CMOs and the added benefit
of lower, "ARM-like" price volatility as the time to reset shortened.
Finally, the Fund eliminated its 9% exposure to short, corporate bonds in
favor of increasing the allocation to AA rated, monthly LIBOR floating rate
CMOs. This preference for AA rated CMOs was borne out of the combination of
outsized yield relative to fixed rate assets of lower quality, longer duration
and their high collateral credit quality (700+ Fair Isaac Credit Organization
"FICO" scores). The Fund's total return for the 12 month period ended October
31, 2004 was 1.80%.
THE SHORT U.S. GOVERNMENT FUND - The Fund shifted its exposure from one that
would benefit from lower market rates and a steeper yield curve to one that
would be better positioned for the union of higher rates and a flatter yield
curve. Indeed, the yield curve flattened with market rates rising from cash to
the five-year maturity sector and with yields out 10 years or more falling
during the twelve months ended October 31, 2004.
The largest asset allocation shift was the increase in exposure to adjustable
rate mortgages (ARMs) from 21% to 37% of the portfolio for the twelve months
ended October 31, 2004. As periodic cap and coupon roll schedules were the key
duration drivers for ARMs, we endeavored to both reduce exposure to low periodic
caps and increase commitment to securities with monthly coupon resets. The Fund
reduced exposure to lower coupon GNMA ARMs as they possessed a low, 1% periodic
rate cap and reset slowly with coupon changes occurring on one day, every twelve
months.
We selectively added seasoned, one year CMT Agency ARMs with relatively high,
periodic (2%) and life rate caps and monthly coupon rate resets. Additionally,
exposure to investments with short, sequential cash flows created from long
resetting, Hybrid ARM collateral (7/1 and 10/1) was increased from 5% to over
14% of the Fund during the fiscal year. The primary advantages of these AAA
rated, fixed rate cash flows was to provide incremental yield spread to short,
agency CMOs unencumbered by periodic rate caps.
Finally, exposure to U.S. Treasury and Agency debentures was reduced from 27%
to 15% during the twelve months ended October 31, 2004. Capitalizing on a
flatter yield curve, the Fund's maturity distribution was altered with
preference for 5 and 10-year maturities in lieu of 2 and 3 year debentures. This
strategy was particularly effective as 2 and 3 year U.S. Treasury yields were up
76 and 56 basis
- --------------------------------------------------------------------------------
Portfolio composition is subject to change.
PAST PERFORMANCE IS NOT PREDICTIVE OF FUTURE RESULTS. Investment return and
net asset value will fluctuate so that an investor's shares, when redeemed,
may be worth more or less than the original cost.
- --------------------------------------------------------------------------------
ASSET MANAGEMENT FUND REVIEW
points respectively; while 10-year note yields fell 22 basis points. The Fund's
total return for the 12 month period ended October 31, 2004 was 2.11%
INTERMEDIATE MORTGAGE FUND - Starting in June 2004, the Fund began investing
in structured mortgage securities with a principal lockout and reduced its
exposure to 15-year agency pass-throughs. This strategy was implemented on the
premise that the Fed would begin a moderate tightening cycle. These assets
provided return in the form of rolling down the steep yield curve in addition to
gaining more control over the duration-drift of the assets via the tighter
principal window. During times of rising interest rates, prepayments typically
decrease and a security such as a pass-through experiences an increase in
duration because principal payments are pushed out farther in time. Longer
durations increase price volatility of a security.
The Fund also increased exposure to the hybrid ARM market in the face of the
impending Fed tightening. Hybrids provided a higher yield than conventional ARMs
and less price volatility than fixed-rate pass-throughs. During the latter half
of the year, the mortgage market tightened to the lowest spread level in recent
times, while simultaneously, the U.S. Treasury yield curve flattened. The Fund's
total return for the 12 month period ended October 31, 2004 was 2.81%.
THE US GOVERNMENT MORTGAGE FUND - The main investment theme for the fiscal
year was to capture excess spread through the ownership of fixed rate-mortgages
while reducing the risk of the inherent callability of these assets. Duration or
market exposure was targeted to between three and four years maximum. To this
end we are pleased to note that the Fund's total return for the 12 month period
ended October 31, 2004 was 4.52%.
Changes in the yield curve and security selection played a large role in
producing portfolio returns during the year. As the Federal Reserve started the
process of raising the Federal Funds Target Rate, the yield curve began to
dramatically flatten. In the spring of 2004, we positioned the portfolio to
avoid investments most affected by higher shorter-term interest rates in favor
of longer-term fixed rate mortgage pass-throughs. In retrospect, this strategy
bore significant fruit not only from a yield perspective but also a total return
approach as well. Driving this strategy was that longer-term interest rates
exhibited significantly less volatility than in years past, this despite an
active Federal Reserve inching up short-term rates. As a result, implied and
realized volatility favored investors of fixed rate mortgages even after taking
into consideration a borrower's prepayment option.
Coming off the heels of the prior year's faster prepayment environment we
pursued a strategy focusing on premium mortgages with attractive loan level
characteristics in order to help mitigate the threat of faster prepayments.
- --------------------------------------------------------------------------------
Portfolio composition is subject to change.
PAST PERFORMANCE IS NOT PREDICTIVE OF FUTURE RESULTS. Investment return and
net asset value will fluctuate so that an investor's shares, when redeemed,
may be worth more or less than the original cost.
- -------------------------
INVESTMENT
COMPARISON
Comparison of change in
value of
a hypothetical $10,000
investment for the years
ended October 31
- --------------------------------------------------------------------------------
ADJUSTABLE RATE MORTGAGE FUND
[GRAPH]
<Table>
<Caption>
ADJUSTABLE RATE MORTGAGE
(ARM) FUND 6 MONTH T-BILL BELLWETHERS
------------------------ --------------------------
1994 10000 10000
1995 10802 10636
1996 11479 11243
1997 12243 11880
1998 12855 12575
1999 13463 13162
2000 14355 13962
2001 15357 14817
2002 15838 15151
2003 16087 15362
2004 16375 15551
</Table>
This graph compares the performance
of the Adjustable Rate Mortgage (ARM)
Fund to the Lehman 6 Month T-Bill
Bellwethers Index.
-------------------------------------
Adjustable Rate Mortgage (ARM) Fund
Average Annual Return
<Table>
One Five Ten
Year Year Year
------------------------------
1.79% 3.99% 5.05%
</Table>
- --------------------------------------------------------------------------------
ULTRA SHORT FUND
[GRAPH]
<Table>
<Caption>
ULTRA SHORT FUND 6 MONTH T-BILL BELLWETHERS
---------------- --------------------------
2001 10000 10000
2002 10229 10226
2003 10420 10368
2004 10608 10496
</Table>
This graph compares the performance
of the Ultra Short Fund to the Lehman
6 Month T-Bill Bellwethers Index.
-------------------------------------
Ultra Short Fund
Average Annual Return
<Table>
One Since
Year Inception
-------------------
1.80% 2.01%
The chart represents historical performance of an initial
investment of $10,000 in the Ultra Short Fund from November 14,
2001 to October 31, 2004.
</Table>
- --------------------------------------------------------------------------------
PAST PERFORMANCE IS NOT PREDICTIVE OF FUTURE RESULTS. PERFORMANCE FIGURES IN
THE TABLE AND GRAPH DO NOT REFLECT THE DEDUCTION OF TAXES THAT A SHAREHOLDER
WOULD PAY ON THE FUND DISTRIBUTIONS OR THE REDEMPTION OF FUND SHARES. The Lehman
6 Mo. T-Bill Bellwethers Index is an unmanaged index comprised of U.S.
Government Treasury Bonds with an average maturity of six months. The Lehman
index represents unmanaged groups of bonds that differ from the composition of
each AMF Fund. The Lehman index does not include a reduction in return for
expenses. Investors cannot invest directly in an index, although they can invest
in its underlying securities.
- -------------------------
INVESTMENT
COMPARISON
Comparison of change in
value of
a hypothetical $10,000
investment for the years
ended October 31
- --------------------------------------------------------------------------------
SHORT U.S. GOVERNMENT FUND
[GRAPH]
<Table>
<Caption>
SHORT U.S. GOVERNMENT FUND LEHMAN 1-3 YR INDEX
-------------------------- -------------------
1994 10000 10000
1995 10894 10883
1996 11438 11534
1997 12128 12281
1998 12987 13221
1999 13313 13613
2000 14081 14448
2001 15442 16062
2002 16056 16877
2003 16364 17235
2004 16710 17567
</Table>
This graph compares the performance
of the Short U.S. Government Fund to
the Lehman Short Government 1-3 Year
Index.
-------------------------------------
Short U.S. Government Fund
Average Annual Return
<Table>
One Five Ten
Year Year Year
------------------------------
2.11% 4.65% 5.27%
</Table>
- --------------------------------------------------------------------------------
INTERMEDIATE MORTGAGE FUND
[GRAPH]
<Table>
<Caption>
INTERMEDIATE MORTGAGE FUND LEHMAN MORTGAGE INDEX
-------------------------- ---------------------
1994 10000 10000
1995 11063 11461
1996 11597 12254
1997 12514 13372
1998 13413 14348
1999 13724 14777
2000 14612 15897
2001 16306 17977
2002 16979 19110
2003 17219 19635
2004 17703 20729
</Table>
This graph compares the performance
of the Intermediate Mortgage Fund to
the Lehman Mortgage Index.
-------------------------------------
Intermediate Mortgage Fund
Average Annual Return
<Table>
One Five Ten
Year Year Year
------------------------------
2.81% 5.22% 5.88%
</Table>
- --------------------------------------------------------------------------------
PAST PERFORMANCE IS NOT PREDICTIVE OF FUTURE RESULTS. PERFORMANCE FIGURES IN
THE TABLE AND GRAPH DO NOT REFLECT THE DEDUCTION OF TAXES THAT A SHAREHOLDER
WOULD PAY ON THE FUND DISTRIBUTIONS OR THE REDEMPTION OF FUND SHARES. The Lehman
Short Government 1-3 Year Index is an unmanaged index generally representative
of government and investment-grade corporate securities with maturities of one
to three years. The Lehman Mortgage Index is a broad-based unmanaged index that
represents the general performance of fixed rate mortgage bonds. Lehman indices
represent unmanaged groups of bonds that differ from the composition of each AMF
Fund. The Lehman indices do not include a reduction in return for expenses.
Investors cannot invest directly in an index, although they can invest in its
underlying securities.
- -------------------------
INVESTMENT
COMPARISON
Comparison of change in
value of
a hypothetical $10,000
investment for the years
ended October 31
- --------------------------------------------------------------------------------
U.S. GOVERNMENT MORTGAGE FUND
[GRAPH]
<Table>
<Caption>
US GOVERNMENT MORTGAGE FUND LEHMAN MORTGAGE INDEX
--------------------------- ---------------------
1994 10000 10000
1995 11237 11461
1996 11871 12254
1997 12923 13372
1998 13902 14348
1999 14129 14777
2000 15104 15897
2001 16914 17977
2002 17682 19110
2003 18043 19635
2004 18859 20729
</Table>
This graph compares the performance
of the U.S. Government Mortgage Fund
to the Lehman Mortgage Index.
-------------------------------------
U.S. Government Mortgage Fund
Average Annual Return
<Table>
One Five Ten
Year Year Year
------------------------------
4.52% 5.95% 6.55%
</Table>
- --------------------------------------------------------------------------------
PAST PERFORMANCE IS NOT PREDICTIVE OF FUTURE RESULTS. PERFORMANCE FIGURES IN
THE TABLE AND GRAPH DO NOT REFLECT THE DEDUCTION OF TAXES THAT A SHAREHOLDER
WOULD PAY ON THE FUND DISTRIBUTIONS OR THE REDEMPTION OF FUND SHARES. The Lehman
Mortgage Index is a broad-based unmanaged index that represents the general
performance of fixed rate mortgage bonds. The Lehman index represents unmanaged
groups of bonds that differ from the composition of each AMF Fund. The Lehman
index does not include a reduction in return for expenses. Investors cannot
invest directly in an index, although they can invest in its underlying
securities.
- --------------------------------------------------------------------------------
ASSET MANAGEMENT FUND
MONEY MARKET FUND
STATEMENT OF NET ASSETS
OCTOBER 31, 2004
- --------------------------------------------------------------------------------
<Table>
<Caption>
PERCENTAGE
OF NET
ASSETS MATURITY PAR VALUE
- -----------------------------------------------------------------------------------------------------
AGENCY OBLIGATIONS................................ 68.5%
Fannie Mae -- Discount Note
1.74% 11/10/04 $ 5,000,000 $ 4,997,825
1.73% 11/18/04 4,000,000 3,996,732
1.81% 12/10/04 10,000,000 9,980,392
-----------
18,974,949
-----------
Freddie Mac -- Discount Note
1.64% 11/30/04 5,000,000 4,993,394
1.81% 1/24/05 7,000,000 6,970,437
-----------
11,963,831
-----------
Federal Home Loan Bank -- Discount Note
1.69% 11/2/04 4,000,000 3,999,812
-----------
TOTAL AGENCY OBLIGATIONS
(Cost $34,938,592) 34,938,592
-----------
REPURCHASE AGREEMENTS............................. 31.6%
Citigroup, 1.77%, (Agreement dated 10/29/04 to
be repurchased at $16,109,376 on 11/1/04.
Collateralized by various U.S. Government
Securities, 5.00%-6.50%, with a value of
$16,455,019, due 6/1/34-9/1/34) 16,107,000 16,107,000
-----------
TOTAL REPURCHASE AGREEMENTS
(Cost $16,107,000) 16,107,000
-----------
TOTAL INVESTMENTS................................. 100.1%
(Cost $51,045,592) (a) 51,045,592
LIABILITIES IN EXCESS OF OTHER ASSETS............. (0.1%) (73,760)
-----------
Net Assets applicable to 50,983,375 Shares of
Common Stock issued and outstanding............. 100.0% $50,971,832
===========
Net Asset Value, Class I, offering and redemption
price per share ($31,883,056 / 31,894,313) $1.00
===========
Net Asset Value, Class D, offering and redemption
price per share ($19,088,776 / 19,089,062) $1.00
===========
</Table>
- --------------------------------------------------------------------------------
(a) Cost for federal income tax purposes is the same.
See notes to financial statements.
1
- --------------------------------------------------------------------------------
ASSET MANAGEMENT FUND
ADJUSTABLE RATE MORTGAGE (ARM) FUND
STATEMENT OF NET ASSETS
OCTOBER 31, 2004
- --------------------------------------------------------------------------------
<Table>
<Caption>
PERCENTAGE
OF NET
ASSETS MATURITY PAR VALUE
- --------------------------------------------------------------------------------------------------------
ADJUSTABLE RATE MORTGAGE-
RELATED SECURITIES*....................... 78.7%
1 Yr. Constant Maturity Treasury Based
ARMS
Bear Stearns Adjustable Rate Mortgage
Trust
4.00% 3/25/31 $ 12,891,002 $ 13,116,595
Fannie Mae
3.91% 7/1/28 15,648,112 16,259,358
3.75% 1/1/29 15,792,681 16,409,574
3.66% 8/1/29 12,832,792 13,334,066
4.33% 3/1/30 9,004,854 9,217,405
3.80% 6/1/30 13,736,177 14,272,739
3.74% 9/1/30 7,835,685 8,141,762
3.52% 5/1/33 18,298,243 18,967,172
3.98% 5/25/42 33,279,380 34,194,563
Fannie Mae Grantor Trust
4.16% 5/25/42 17,254,124 17,728,612
Fannie Mae Whole Loan
4.17% 8/25/42 15,241,402 15,660,540
Fifth Third Mortgage Loan Trust
3.55% 11/19/32 29,363,510 29,574,560
Freddie Mac
4.11% 10/1/22 5,487,375 5,658,372
5.49% 8/1/24 7,676,737 7,976,605
3.59% 9/1/27 6,498,953 6,719,170
3.57% 12/1/27 9,143,833 9,496,566
3.65% 12/1/27 9,827,457 10,211,337
3.61% 9/1/28 49,628,285 51,566,865
3.78% 9/1/30 6,571,687 6,828,390
3.69% 7/1/31 33,886,992 35,191,675
Government National Mortgage
Association II
4.63% 10/20/25 3,300,998 3,368,141
4.63% 10/20/26 5,214,864 5,320,389
3.75% 8/20/27 10,658,311 10,816,172
4.63% 10/20/27 3,638,450 3,711,522
Structured Asset Mortgage Investments
3.83% 3/25/32 11,097,321 11,208,294
</Table>
- --------------------------------------------------------------------------------
See notes to financial statements.
2
- --------------------------------------------------------------------------------
ASSET MANAGEMENT FUND
ADJUSTABLE RATE MORTGAGE (ARM) FUND (CONTINUED)
STATEMENT OF NET ASSETS
OCTOBER 31, 2004
- --------------------------------------------------------------------------------
<Table>
<Caption>
PERCENTAGE
OF NET
ASSETS MATURITY PAR VALUE
- --------------------------------------------------------------------------------------------------------
Washington Mutual
2.78% 4/25/44 $ 57,955,611 $ 58,498,946
--------------
433,449,390
--------------
6 Mo. Certificate of Deposit Based ARMS
Fannie Mae
2.57% 6/1/21 6,814,607 6,834,471
3.03% 12/1/24 9,563,618 9,710,239
Freddie Mac
3.10% 1/1/26 3,317,696 3,361,479
--------------
19,906,189
--------------
6 Mo. London Interbank Offering Rate
(LIBOR) Based ARMS
Bear Stearns Adjustable Rate Mortgage
Trust
4.69% 3/25/31 2,246,154 2,282,654
DLJ Mortgage Acceptance Corp.
4.03% 4/25/24 378,946 378,946
Fannie Mae
3.26% 9/1/27 53,940,695 54,815,775
2.51% 12/1/27 27,987,499 28,670,786
2.91% 3/1/28 56,334,306 57,661,429
3.00% 3/1/28 64,850,905 66,522,827
3.36% 4/1/28 19,865,419 20,330,608
2.60% 6/1/28 37,086,067 38,078,082
3.00% 6/1/28 6,580,152 6,748,979
2.79% 7/1/28 12,742,094 13,080,919
3.00% 8/1/28 17,921,800 18,377,767
3.26% 9/1/28 11,005,168 11,248,536
3.38% 9/1/28 3,710,524 3,802,678
3.16% 11/1/32 10,469,808 10,727,753
2.69% 12/1/32 9,200,101 9,473,528
3.10% 3/1/33 19,394,518 19,924,105
3.18% 9/1/33 26,567,486 27,120,834
3.24% 9/1/33 16,056,014 16,340,430
3.11% 11/1/33 34,272,179 35,033,124
3.21% 11/1/33 29,203,076 29,771,367
</Table>
- --------------------------------------------------------------------------------
See notes to financial statements.
3
- --------------------------------------------------------------------------------
ASSET MANAGEMENT FUND
ADJUSTABLE RATE MORTGAGE (ARM) FUND (CONTINUED)
STATEMENT OF NET ASSETS
OCTOBER 31, 2004
- --------------------------------------------------------------------------------
<Table>
<Caption>
PERCENTAGE
OF NET
ASSETS MATURITY PAR VALUE
- --------------------------------------------------------------------------------------------------------
Freddie Mac
3.67% 9/1/30 $ 15,364,188 $ 15,815,926
Master Adjustable Rate Mortgage Trust
3.90% 1/25/34 23,797,532 24,251,173
MLCC Mortgage Investors, Inc.
3.41% 10/25/28 88,666,130 91,242,988
3.18% 5/25/29 57,074,585 58,768,987
Sequoia Mortgage Trust
2.82% 7/20/34 47,210,701 48,361,462
Structured Adjustable Rate Mortgage
Loan Trust
4.23% 11/25/34 30,000,000 31,087,500
Structured Asset Mortgage Investments
3.36% 7/19/32 30,571,717 31,230,920
3.40% 8/19/33 79,825,021 82,169,881
3.36% 10/19/33 64,354,315 65,963,173
3.52% 11/19/33 39,739,599 40,956,624
Structured Asset Securities Corp.
3.25% 5/25/32 36,043,392 36,606,570
3.92% 11/25/32 34,704,719 35,854,313
3.85% 12/25/32 30,526,768 31,585,665
3.86% 2/25/33 58,051,120 60,119,191
4.23% 3/25/33 32,581,417 33,762,493
4.35% 5/25/33 79,710,385 82,674,615
3.79% 9/25/33 83,436,407 86,513,124
4.10% 11/25/33 38,983,707 40,433,414
--------------
1,367,789,146
--------------
Cost of Funds Index Based ARMS
Fannie Mae
3.01% 11/1/32 17,105,604 17,263,249
3.07% 8/1/33 36,151,196 36,524,240
3.22% 11/1/36 46,089,249 46,591,714
3.11% 6/1/38 29,851,233 30,151,925
Washington Mutual
3.05% 11/25/42 27,282,346 27,316,449
--------------
157,847,577
--------------
</Table>
- --------------------------------------------------------------------------------
See notes to financial statements.
4
- --------------------------------------------------------------------------------
ASSET MANAGEMENT FUND
ADJUSTABLE RATE MORTGAGE (ARM) FUND (CONTINUED)
STATEMENT OF NET ASSETS
OCTOBER 31, 2004
- --------------------------------------------------------------------------------
<Table>
<Caption>
PERCENTAGE
OF NET
ASSETS MATURITY PAR VALUE
- --------------------------------------------------------------------------------------------------------
HYBRID ARMS
Bank of America Mortgage Securities
6.32% 6/20/31 $ 5,686,895 $ 5,743,764
5.88% 7/20/32 4,548,872 4,575,881
Bear Stearns Adjustable Rate Mortgage
Trust
3.76% 11/25/34 36,921,809 37,094,880
CS First Boston Mortgage Securities
Corp.
6.32% 11/25/31 6,949,679 7,064,783
5.06% 6/25/32 6,700,932 6,736,531
GSR Mortgage Loan Trust
4.74% 10/25/33 21,970,002 22,100,449
JP Morgan Mortgage Trust
3.50% 5/25/34 33,324,252 33,303,424
Master Adjustable Rate Mortgage Trust
5.46% 10/25/32 11,265,469 11,409,807
Merrill Lynch Mortgage Investors
5.29% 6/25/23 2,482,330 2,481,554
Structured Adjustable Rate Mortgage
Loan Trust
4.74% 7/25/34 59,008,895 59,267,060
5.07% 9/25/34 29,126,439 29,799,988
Structured Asset Securities Corp.
4.23% 9/25/33 44,396,653 44,563,140
Wells Fargo Mortgage Backed Securities
Trust
4.64% 10/25/33 51,776,409 52,051,472
4.64% 10/25/33 20,556,605 20,633,692
4.52% 11/25/33 50,306,394 50,542,205
4.76% 1/25/34 25,041,395 25,432,666
4.77% 6/25/34 24,973,103 25,176,009
4.82% 7/25/34 35,923,512 36,159,260
3.98% 10/25/34 46,048,145 46,451,066
--------------
520,587,631
--------------
</Table>
- --------------------------------------------------------------------------------
See notes to financial statements.
5
- --------------------------------------------------------------------------------
ASSET MANAGEMENT FUND
ADJUSTABLE RATE MORTGAGE (ARM) FUND (CONTINUED)
STATEMENT OF NET ASSETS
OCTOBER 31, 2004
- --------------------------------------------------------------------------------
<Table>
<Caption>
PERCENTAGE
OF NET
ASSETS MATURITY PAR VALUE
- --------------------------------------------------------------------------------------------------------
MONTHLY London Interbank Offering Rate
(LIBOR) Collateralized Mortgage
Obligation
Fannie Mae
3.00% 9/1/28 $ 22,633,475 $ 23,139,695
2.29% 9/18/31 13,560,068 13,593,536
3.19% 2/1/33 32,176,128 33,087,871
2.87% 7/1/33 5,216,971 5,340,634
3.04% 9/1/33 16,654,532 17,059,787
GSR Mortgage Loan Trust
2.28% 3/25/32 9,281,590 9,261,346
Master Asset Securitization Trust
2.38% 12/25/32 385,309 385,309
MLCC Mortgage Investors, Inc.,
2.25% 9/15/21 8,572,544 8,585,938
--------------
110,454,116
--------------
TOTAL ADJUSTABLE RATE MORTGAGE-RELATED
SECURITIES*
(Cost $2,593,556,315) 2,610,034,049
--------------
FIXED RATE MORTGAGE-RELATED SECURITIES...... 13.9%
Collateralized Mortgage Obligations
Bank of America Mortgage Securities
4.25% 8/25/33 38,701,642 38,925,817
Citicorp Mortgage Securities
5.00% 10/25/33 16,789,918 16,958,093
Fannie Mae
4.50% 5/25/19 40,000,000 40,824,324
5.00% 12/25/21 29,632,782 30,177,785
4.50% 3/25/27 40,389,000 40,974,135
3.00% 11/25/15 15,591,445 15,600,683
Fannie Mae Whole Loan
3.25% 6/25/33 3,665,794 3,662,357
</Table>
- --------------------------------------------------------------------------------
See notes to financial statements.
6
- --------------------------------------------------------------------------------
ASSET MANAGEMENT FUND
ADJUSTABLE RATE MORTGAGE (ARM) FUND (CONTINUED)
STATEMENT OF NET ASSETS
OCTOBER 31, 2004
- --------------------------------------------------------------------------------
<Table>
<Caption>
PERCENTAGE
OF NET
ASSETS MATURITY PAR VALUE
- --------------------------------------------------------------------------------------------------------
Freddie Mac
5.00% 3/15/11 $ 12,966,808 $ 13,033,665
4.50% 8/15/11 10,484,219 10,575,559
5.00% 6/15/16 25,000,000 25,872,823
4.00% 7/15/17 32,500,000 32,880,933
3.50% 7/15/18 16,727,494 16,761,684
4.00% 7/15/18 27,797,443 28,012,075
4.00% 12/15/18 40,000,000 40,596,676
5.00% 1/15/21 56,272,541 57,927,994
Structured Asset Securities Corp.
3.25% 8/25/32 5,591,489 5,593,641
Washington Mutual MSC Mortgage Pass
Through
5.00% 2/25/33 37,090,582 37,742,579
Wells Fargo Mortgage Backed Securities
Trust
5.00% 2/25/33 6,159,458 6,174,327
--------------
TOTAL FIXED RATE MORTGAGE-RELATED
SECURITIES
(Cost $460,700,420) 462,295,150
--------------
U.S. TREASURY OBLIGATIONS................... 0.6%
U.S. Treasury Notes
3.38% 9/15/09.. 20,000,000 20,087,500
--------------
TOTAL U.S. TREASURY OBLIGATIONS
(Cost $20,044,592) 20,087,500
--------------
</Table>
- --------------------------------------------------------------------------------
See notes to financial statements.
7
- --------------------------------------------------------------------------------
ASSET MANAGEMENT FUND
ADJUSTABLE RATE MORTGAGE (ARM) FUND (CONTINUED)
STATEMENT OF NET ASSETS
OCTOBER 31, 2004
- --------------------------------------------------------------------------------
<Table>
<Caption>
PERCENTAGE
OF NET
ASSETS MATURITY PAR VALUE
- --------------------------------------------------------------------------------------------------------
REPURCHASE AGREEMENTS....................... 6.6%
Citigroup, 1.77%, (Agreement dated
10/29/04 to be repurchased at
$119,025,554 on 11/1/04. Collateralized
by various Adjustable Rate Mortgage
U.S. Government Securities,
3.05%-6.11%, with a value of
$121,939,830, due
7/1/25-10/1/34) $119,008,000 $ 119,008,000
--------------
Bear Stearns*, 1.87%, (Agreement dated
10/19/04 to be repurchased at
$99,647,139 on 11/19/04. Collateralized
by various Adjustable Rate Mortgage
U.S. Government Securities,
2.27%-2.87%, with a value of
$102,586,755, due 6/15/23-10/15/33) 99,502,000 99,502,000
--------------
TOTAL REPURCHASE AGREEMENTS
(Cost $218,510,000) 218,510,000
--------------
TOTAL INVESTMENTS
(Cost $3,292,811,327) (a)................. 99.8% 3,310,926,699
OTHER ASSETS IN EXCESS OF LIABILITIES....... 0.2% 6,097,684
--------------
Net Assets applicable to 337,306,907 Shares
of Common Stock issued and outstanding.... 100.0% $3,317,024,383
==============
Net Asset Value, offering and redemption
price per share ($3,317,024,383 /
337,306,907) $9.83
==============
</Table>
- --------------------------------------------------------------------------------
* The rates presented are the rates in effect at October 31, 2004.
(a) Cost for federal income tax purposes is the same.
See notes to financial statements.
8
- --------------------------------------------------------------------------------
ASSET MANAGEMENT FUND
ULTRA SHORT FUND
STATEMENT OF NET ASSETS
OCTOBER 31, 2004
- --------------------------------------------------------------------------------
<Table>
<Caption>
PERCENTAGE
OF NET
ASSETS MATURITY PAR VALUE
- --------------------------------------------------------------------------------------------------------
ADJUSTABLE RATE MORTGAGE-RELATED SECURITIES*... 84.1%
1 Yr. Constant Maturity Treasury Based ARMS
Fannie Mae
3.85% 10/1/26 $ 2,640,041 $ 2,733,919
3.83% 10/1/28 2,637,506 2,733,073
4.02% 12/1/30 8,086,363 8,402,233
3.80% 8/1/31 5,924,875 6,102,064
Freddie Mac
3.70% 11/1/28 3,163,871 3,287,458
4.15% 1/1/29 6,829,348 7,096,116
3.76% 9/1/30 2,261,755 2,324,587
3.88% 8/1/31 13,476,663 14,003,088
Fund America Investors Corp.
3.60% 6/25/23 5,053,309 5,065,942
Washington Mutual
2.78% 4/25/44 8,916,248 8,999,838
------------
60,748,318
------------
6 Mo. Certificate of Deposit Based ARMS
Fannie Mae
2.55% 4/1/20 7,126,966 7,145,710
6 Mo. London Interbank Offering Rate (LIBOR)
Based ARMS
Fannie Mae
2.72% 12/1/26 10,035,844 10,250,199
2.79% 7/1/28 6,994,417 7,180,405
3.30% 9/1/32 9,969,028 10,195,165
MLCC Mortgage Investors, Inc.
3.18% 5/25/29 13,793,025 14,202,505
3.10% 7/25/29 14,668,858 15,099,757
Sequoia Mortgage Trust
3.05% 6/20/34 18,517,582 18,968,949
Structured Adjustable Rate Mortgage Loan
Trust
3.85% 8/25/34 4,782,619 4,973,924
Structured Asset Securities Corp.
3.92% 11/25/32 5,532,043 5,715,292
4.15% 11/25/32 5,532,043 5,720,478
------------
92,306,674
------------
</Table>
- --------------------------------------------------------------------------------
See notes to financial statements.
9
- --------------------------------------------------------------------------------
ASSET MANAGEMENT FUND
ULTRA SHORT FUND (CONTINUED)
STATEMENT OF NET ASSETS
OCTOBER 31, 2004
- --------------------------------------------------------------------------------
<Table>
<Caption>
PERCENTAGE
OF NET
ASSETS MATURITY PAR VALUE
- --------------------------------------------------------------------------------------------------------
Cost of Funds Index Based ARMS
Regal Trust
3.36% 9/29/31 $ 2,243,290 $ 2,247,496
Ryland Mortgage Securities Corp.
3.70% 10/25/23 1,572,651 1,572,651
------------
3,820,147
------------
HYBRID ARMS
Bear Stearns Adjustable Rate Mortgage Loan
Trust
3.76% 11/25/34 13,744,629 13,809,057
GSR Mortgage Loan Trust
4.74% 10/25/33 4,432,564 4,458,882
Structured Adjustable Rate Mortgage Loan
Trust
4.74% 7/25/34 8,429,842 8,466,723
5.07% 9/25/34 14,563,219 14,899,994
Wells Fargo Mortgage Backed Securities
Trust
4.91% 5/25/34 16,889,238 17,042,297
4.82% 7/25/34 8,980,878 9,039,815
------------
67,716,768
------------
MONTHLY London Interbank Offering Rate
(LIBOR) Collateralized Mortgage
Obligations
Structured Asset Securities Corp.
3.18% 3/25/33 4,229,155 4,293,914
3.28% 5/25/33 4,997,904 5,096,300
3.13% 11/25/33 3,575,356 3,627,869
------------
13,018,083
------------
TOTAL ADJUSTABLE RATE MORTGAGE-RELATED
SECURITIES*
(Cost $243,667,349) 244,755,700
------------
</Table>
- --------------------------------------------------------------------------------
See notes to financial statements.
10
- --------------------------------------------------------------------------------
ASSET MANAGEMENT FUND
ULTRA SHORT FUND (CONTINUED)
STATEMENT OF NET ASSETS
OCTOBER 31, 2004
- --------------------------------------------------------------------------------
<Table>
<Caption>
PERCENTAGE
OF NET
ASSETS MATURITY PAR VALUE
- --------------------------------------------------------------------------------------------------------
FIXED RATE MORTGAGE-RELATED SECURITIES......... 13.9%
Collateralized Mortgage Obligations
Freddie Mac
5.00% 6/15/16 $12,500,000 $ 12,936,411
5.50% 6/15/34 8,531,551 8,706,110
GSR Mortgage Loan Trust
4.50% 4/25/33 6,543,843 6,545,341
Morgan Stanley Mortgage Loan Trust
4.75% 8/25/34 12,157,000 12,407,738
------------
TOTAL FIXED RATE MORTGAGE-RELATED SECURITIES
(Cost $40,455,020) 40,595,600
------------
U.S. TREASURY OBLIGATIONS 1.0%
U.S. Treasury Notes
3.50% 8/15/09 3,000,000 3,031,875
------------
TOTAL U.S. TREASURY OBLIGATIONS
(Cost $3,006,109) 3,031,875
------------
REPURCHASE AGREEMENTS 0.8%
Citigroup 1.77%, (Agreement dated 10/29/04 to
be repurchased at $2,322,343 on 11/1/04.
Collateralized by a U.S. Government
Securities, 5.00%, with a value of
$2,374,848, due 4/1/34) 2,322,000 2,322,000
------------
TOTAL REPURCHASE AGREEMENTS
(Cost $2,322,000) 2,322,000
------------
TOTAL INVESTMENTS
Cost $289,450,478)(a)...................... 99.8% 290,705,175
OTHER ASSETS IN EXCESS OF LIABILITIES........ 0.2% 643,338
------------
Net Assets applicable to 29,506,245 Shares of
Common Stock issued and outstanding.......... 100.0% $291,348,513
============
Net Asset Value, offering and redemption price
per share ($291,348,513 / 29,506,245) $9.87
============
</Table>
- --------------------------------------------------------------------------------
* The rates presented are the rates in effect at October 31, 2004.
(a) Represents cost for financial reporting purposes and differs from cost basis
for federal income tax purposes by the amount of losses recognized for
financial reporting in excess of federal income tax reporting of $44,285.
Cost for federal income tax purposes differs from fair value by net
unrealized appreciation of securities as follows:
<Table>
Unrealized appreciation.................................... $1,461,580
Unrealized depreciation.................................... (251,168)
----------
Net unrealized appreciation................................ $1,210,412
==========
</Table>
See notes to financial statements.
11
- --------------------------------------------------------------------------------
ASSET MANAGEMENT FUND
SHORT U.S. GOVERNMENT FUND
STATEMENT OF NET ASSETS
OCTOBER 31, 2004
- --------------------------------------------------------------------------------
<Table>
<Caption>
PERCENTAGE
OF NET
ASSETS MATURITY PAR VALUE
- --------------------------------------------------------------------------------------------------------
ADJUSTABLE RATE MORTGAGE-RELATED SECURITIES*... 36.6%
1 Yr. Constant Maturity Treasury Based ARMS
Fannie Mae
3.59% 5/1/26 $ 6,061,603 $ 6,298,381
4.35% 11/1/29 1,749,878 1,792,349
4.33% 3/1/30 1,233,598 1,262,716
Freddie Mac
3.83% 5/1/18 1,842,850 1,901,210
3.88% 8/1/31 15,518,190 16,124,362
4.24% 9/1/32 1,690,339 1,729,553
Government National Mortgage Association
II
4.63% 12/20/23 2,927,521 2,990,384
3.75% 7/20/27 795,733 807,900
4.63% 12/20/27 1,408,106 1,436,409
------------
34,343,264
------------
HYBRID ARMS
Structured Adjustable Rate Mortgage Loan
Trust
4.74% 7/25/34 12,644,763 12,700,084
Wells Fargo Mortgage Backed Securities
Trust
4.82% 7/25/34 8,980,878 9,039,815
------------
21,739,899
------------
TOTAL ADJUSTABLE RATE MORTGAGE-RELATED
SECURITIES*
(Cost $55,914,529) 56,083,163
------------
FIXED RATE MORTGAGE-RELATED SECURITIES......... 44.1%
15 Yr. Securities
Freddie Mac
8.50% 8/17/07 967,189 995,469
8.00% 12/17/15 1,740,874 1,837,097
------------
2,832,566
------------
</Table>
- --------------------------------------------------------------------------------
See notes to financial statements.
12
- --------------------------------------------------------------------------------
ASSET MANAGEMENT FUND
SHORT U.S. GOVERNMENT FUND (CONTINUED)
STATEMENT OF NET ASSETS
OCTOBER 31, 2004
- --------------------------------------------------------------------------------
<Table>
<Caption>
PERCENTAGE
OF NET
ASSETS MATURITY PAR VALUE
- --------------------------------------------------------------------------------------------------------
Collateralized Mortgage Obligations
Freddie Mac
7.00% 12/15/06 $ 360,433 $ 359,981
5.00% 6/15/16 12,500,000 12,936,411
5.00% 9/15/17 15,000,000 15,548,888
4.00% 12/15/17 10,000,000 10,170,040
4.50% 9/15/22 10,000,000 10,243,358
5.00% 7/15/26 15,000,000 15,417,689
------------
64,676,367
------------
TOTAL FIXED RATE MORTGAGE-RELATED SECURITIES
(Cost $67,193,776) 67,508,933
------------
U.S. TREASURY OBLIGATIONS...................... 15.1%
U.S. Treasury Notes
2.63% 5/15/08 3,000,000 2,967,656
3.38% 11/15/08 5,000,000 5,053,906
3.25% 1/15/09 2,000,000 2,009,062
2.63% 3/15/09 5,000,000 4,889,844
3.63% 7/15/09 2,000,000 2,032,500
3.38% 9/15/09 2,000,000 2,008,750
4.75% 5/15/14 3,000,000 3,172,500
4.25% 8/15/14 1,000,000 1,017,813
------------
23,152,031
------------
TOTAL U.S. TREASURY OBLIGATIONS
(Cost $23,189,885) 23,152,031
------------
</Table>
- --------------------------------------------------------------------------------
See notes to financial statements.
13
- --------------------------------------------------------------------------------
ASSET MANAGEMENT FUND
SHORT U.S. GOVERNMENT FUND (CONTINUED)
STATEMENT OF NET ASSETS
OCTOBER 31, 2004
- --------------------------------------------------------------------------------
<Table>
<Caption>
PERCENTAGE
OF NET
ASSETS MATURITY PAR VALUE
- --------------------------------------------------------------------------------------------------------
REPURCHASE AGREEMENTS.......................... 3.7%
Citigroup, 1.77%, (Agreement dated 10/29/04
to be repurchased at $5,683,838 on
11/1/04. Collateralized by a U.S.
Government Security, 4.50%, with a value
of $5,813,356, due 7/1/18) $ 5,683,000 $ 5,683,000
------------
TOTAL REPURCHASE AGREEMENTS
(Cost $5,683,000) 5,683,000
------------
TOTAL INVESTMENTS
(Cost $151,981,190)(a)....................... 99.5% 152,427,127
OTHER ASSETS IN EXCESS OF LIABILITIES.......... 0.5% 824,961
------------
Net Assets applicable to 14,441,347 Shares of
Common Stock issued and outstanding.......... 100.0% $153,252,088
============
Net Asset Value, offering and redemption price
per share ($153,252,088 / 14,441,347) $10.61
============
</Table>
- --------------------------------------------------------------------------------
* The rates presented are the rates in effect at October 31, 2004.
(a) Represents cost for financial reporting purposes and differs from cost basis
for federal income tax purposes by the amount of losses recognized for
financial reporting in excess of federal income tax reporting of $14,967.
Cost for federal income tax purposes differs from fair value by net
unrealized appreciation of securities as follows:
<Table>
Unrealized appreciation.................................. $ 655,762
Unrealized depreciation.................................. (224,792)
---------
Net unrealized appreciation.............................. $ 430,970
=========
</Table>
See notes to financial statements.
14
- --------------------------------------------------------------------------------
ASSET MANAGEMENT FUND
INTERMEDIATE MORTGAGE FUND
STATEMENT OF NET ASSETS
OCTOBER 31, 2004
- --------------------------------------------------------------------------------
<Table>
<Caption>
PERCENTAGE
OF NET
ASSETS MATURITY PAR VALUE
- --------------------------------------------------------------------------------------------------------
ADJUSTABLE RATE MORTGAGE-RELATED SECURITIES*... 22.2%
HYBRID ARMS
Morgan Stanley Mortgage Loan Trust
4.92% 9/25/34 $15,000,000 $ 15,450,000
5.47% 10/25/34 11,000,000 11,467,500
4.21% 8/25/34 9,409,874 9,471,626
Structured Adjustable Rate Mortgage Loan
Trust
4.74% 7/25/34 9,003,071 9,042,460
5.21% 9/25/34 20,594,132 20,915,915
------------
TOTAL ADJUSTABLE RATE MORTGAGE-RELATED
SECURITIES* (Cost $65,969,120) 66,347,501
------------
AGENCY OBLIGATIONS............................. 0.7%
Freddie Mac
5.75% 3/15/09 2,000,000 2,182,978
------------
TOTAL AGENCY OBLIGATIONS (Cost $1,851,505) 2,182,978
------------
FIXED RATE MORTGAGE-RELATED SECURITIES......... 68.5%
15 Yr. Securities
Fannie Mae
7.00% 3/1/15 1,914,636 2,035,946
7.00% 3/1/15 1,015,875 1,080,240
7.00% 3/1/15 1,077,739 1,146,024
7.50% 11/1/15 1,414,773 1,507,838
6.50% 1/1/16 1,429,985 1,520,700
6.00% 6/1/16 3,144,726 3,305,647
6.00% 7/1/17 2,980,853 3,133,389
6.00% 7/1/17 2,007,843 2,110,589
5.50% 9/1/17 5,316,942 5,524,843
5.00% 11/1/17 10,238,068 10,484,021
4.50% 5/1/18 9,015,838 9,068,312
4.50% 9/1/18 13,022,302 13,073,678
5.00% 11/1/18 10,401,822 10,641,958
5.00% 2/1/19 10,659,201 10,901,947
</Table>
- --------------------------------------------------------------------------------
See notes to financial statements.
15
- --------------------------------------------------------------------------------
ASSET MANAGEMENT FUND
INTERMEDIATE MORTGAGE FUND (CONTINUED)
STATEMENT OF NET ASSETS
OCTOBER 31, 2004
- --------------------------------------------------------------------------------
<Table>
<Caption>
PERCENTAGE
OF NET
ASSETS MATURITY PAR VALUE
- --------------------------------------------------------------------------------------------------------
Freddie Mac
7.50% 1/1/10 $ 1,079,635 $ 1,148,800
6.00% 6/1/17 3,293,822 3,461,858
5.00% 12/1/18 8,498,911 8,685,157
5.00% 5/1/19 20,378,200 20,831,137
------------
109,662,084
------------
Balloons
Freddie Mac Gold
5.50% 8/1/11 4,786,858 4,916,627
------------
Collateralized Mortgage Obligations
Countrywide Home Loan
5.00% 5/25/34 6,774,609 6,810,690
Fannie Mae
4.50% 6/25/18 9,724,426 9,851,651
Freddie Mac
4.00% 12/15/16 18,301,167 18,337,555
4.50% 9/15/22 13,601,000 13,931,991
5.00% 7/15/26 15,000,000 15,417,689
Washington Mutual MSC Mortgage Pass
Through
4.55% 5/25/33 16,657,079 16,668,061
Wells Fargo Mortgage Backed Securities
Trust
5.50% 10/25/14 8,244,838 8,488,069
------------
89,505,706
------------
TOTAL FIXED RATE MORTGAGE-RELATED SECURITIES
(Cost $201,797,620) 204,084,417
------------
</Table>
- --------------------------------------------------------------------------------
See notes to financial statements.
16
- --------------------------------------------------------------------------------
ASSET MANAGEMENT FUND
INTERMEDIATE MORTGAGE FUND (CONTINUED)
STATEMENT OF NET ASSETS
OCTOBER 31, 2004
- --------------------------------------------------------------------------------
<Table>
<Caption>
PERCENTAGE
OF NET
ASSETS MATURITY PAR VALUE
- --------------------------------------------------------------------------------------------------------
U.S. TREASURY OBLIGATIONS...................... 4.4%
U.S. Treasury Notes
3.00% 11/15/07 $10,000,000 $ 10,051,560
3.38% 9/15/09 3,000,000 3,013,125
------------
13,064,685
------------
TOTAL U.S. TREASURY OBLIGATIONS
(Cost $13,063,996) 13,064,685
------------
REPURCHASE AGREEMENTS.......................... 4.2%
Citigroup, 1.77%, (Agreement dated 10/29/04
to be repurchased at $12,488,842 on
11/1/04. Collateralized by various
Adjustable Rate Mortgage U.S. Government
Securities, 2.66%-4.79%, with a value of
$12,908,456, due 7/1/32-6/1/40) 12,487,000 12,487,000
------------
TOTAL REPURCHASE AGREEMENTS (Cost
$12,487,000) 12,487,000
------------
TOTAL INVESTMENTS (Cost $295,169,241)(a)....... 100.0% 298,166,581
OTHER ASSETS IN EXCESS OF LIABILITIES.......... 0.0% 141,459
------------
Net Assets applicable to 31,158,479 Shares of
Common Stock issued and outstanding.......... 100.0% $298,308,040
============
Net Asset Value, offering and redemption price
per share ($298,308,040 / 31,158,479) $9.57
============
</Table>
- --------------------------------------------------------------------------------
* The rates presented are the rates in effect at October 31, 2004.
(a) Cost for federal income tax purposes is the same.
See notes to financial statements.
17
- --------------------------------------------------------------------------------
ASSET MANAGEMENT FUND
U.S. GOVERNMENT MORTGAGE FUND
STATEMENT OF NET ASSETS
OCTOBER 31, 2004
- --------------------------------------------------------------------------------
<Table>
<Caption>
PERCENTAGE
OF NET
ASSETS MATURITY PAR VALUE
- -----------------------------------------------------------------------------------------------------
AGENCY OBLIGATIONS.............................. 2.0%
Freddie Mac
5.75% 3/15/09 $ 3,000,000 $ 3,274,467
------------
TOTAL AGENCY OBLIGATIONS
(Cost $2,796,412) 3,274,467
------------
FIXED RATE MORTGAGE-RELATED SECURITIES.......... 91.7%
15 Yr. Securities
Fannie Mae
7.00% 3/1/15 1,703,086 1,810,993
6.00% 8/1/16 6,414,211 6,742,438
5.00% 3/1/18 2,741,809 2,807,677
Freddie Mac
5.50% 7/1/19 7,295,403 7,572,686
------------
18,933,794
------------
30 Yr. Securities
Fannie Mae
5.00% 8/1/33(a) 14,646,990 14,628,681
5.50% 11/1/33 16,717,016 17,067,682
6.00% 12/1/33 17,570,402 18,247,136
5.50% 4/1/34 6,865,522 7,008,250
6.00% 6/1/34 10,249,724 10,682,935
5.50% 7/1/34 20,670,452 21,084,669
5.50% 7/1/34 12,532,478 12,783,618
5.50% 8/1/34 11,948,314 12,206,417
5.00% TBA 11/1/34 10,000,000 9,962,500
Freddie Mac Gold
6.00% 4/1/33 6,075,276 6,301,675
Government National Mortgage Association
7.50% 2/15/24 900,976 979,671
7.00% 4/15/27 1,405,747 1,510,794
6.00% 1/15/29 1,562,508 1,635,140
------------
134,099,168
------------
</Table>
- --------------------------------------------------------------------------------
See notes to financial statements.
18
- --------------------------------------------------------------------------------
ASSET MANAGEMENT FUND
U.S. GOVERNMENT MORTGAGE FUND (CONTINUED)
STATEMENT OF NET ASSETS
OCTOBER 31, 2004
- --------------------------------------------------------------------------------
<Table>
<Caption>
PERCENTAGE
OF NET
ASSETS MATURITY PAR VALUE
- -----------------------------------------------------------------------------------------------------
TOTAL FIXED RATE MORTGAGE-RELATED SECURITIES
(Cost $149,587,293) $153,032,962
------------
U.S. TREASURY OBLIGATIONS....................... 11.0%
U.S. Treasury Notes
4.00% 6/15/09 $ 4,000,000 4,131,250
6.50% 2/15/10 7,000,000 8,056,563
4.25% 8/15/14 6,000,000 6,106,875
------------
TOTAL U.S. TREASURY OBLIGATIONS
(Cost $17,575,129) 18,294,688
------------
REPURCHASE AGREEMENTS........................... 1.2%
Citigroup, 1.77%, (Agreement dated 10/29/04 to
be repurchased at $2,034,300 on 11/1/04.
Collateralized by an Adjustable Rate
Mortgage U.S. Government Securities, 4.61%,
with a value of $2,167,516, due 9/1/34) 2,034,000 2,034,000
------------
TOTAL REPURCHASE AGREEMENTS
(Cost $2,034,000) 2,034,000
------------
TOTAL INVESTMENTS
(Cost $171,992,834) (b)....................... 105.9% 176,636,117
LIABILITIES IN EXCESS OF OTHER ASSETS........... (5.9%) (9,768,162)
------------
Net Assets applicable to 15,760,092 Shares of
Common Stock issued and outstanding........... 100.0% $166,867,955
============
Net Asset Value, offering and redemption price
per share ($166,867,955 / 15,760,092) $10.59
============
</Table>
- --------------------------------------------------------------------------------
(a) All or part of this security was used as collateral as of 10/31/04.
(b) Represents cost for financial reporting purposes and differs from cost basis
for federal income tax purposes by the amount of losses recognized for
financial reporting in excess of federal income tax reporting of $136,721.
Cost for federal income tax purposes differs from fair value by net
unrealized appreciation of securities as follows:
<Table>
Unrealized appreciation..................................... $4,506,562
Unrealized depreciation..................................... --
----------
Net unrealized appreciation................................. $4,506,562
==========
</Table>
TBA -- To be Announced/when-issued security
See notes to financial statements.
19
- --------------------------------------------------------------------------------
ASSET MANAGEMENT FUND
STATEMENTS OF OPERATIONS
FOR THE YEAR ENDED OCTOBER 31, 2004
- --------------------------------------------------------------------------------
<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............ $ 652,162 $90,353,766 $6,969,186 $5,481,390 $10,797,006 $7,519,687
---------- ----------- ---------- ----------- ----------- ----------
Operating expenses:
Investment advisory
fee.................... 84,928 16,367,197 1,269,198 460,905 1,084,940 451,487
Distribution fee -- Class
I Shares............... 54,146 9,576,510 705,109 276,545 464,980 270,895
Distribution fee -- Class
D
Shares................. 123,129 -- -- -- -- --
Administration fee....... 16,986 683,041 84,616 55,310 92,998 54,180
Custodian fee............ 13,820 302,879 39,807 32,583 42,796 30,662
Transfer agent fee....... 4,349 78,632 8,888 3,484 3,718 1,785
Legal.................... 1,539 80,197 8,399 3,255 7,744 4,173
Printing................. 743 46,265 3,054 2,077 3,884 2,146
Trustees' fee............ 1,064 68,220 4,895 3,269 5,397 3,157
Other.................... 23,959 447,994 38,604 38,620 51,354 31,586
---------- ----------- ---------- ----------- ----------- ----------
Total expenses before fee
reductions............. 324,663 27,650,935 2,162,570 876,048 1,757,811 850,071
Expenses reduced by
Investment Adviser..... (84,928) (6,790,692) (564,089) -- (309,980) --
Expenses reduced by
Distributor............ (74,667) (3,830,560) (282,040) -- -- --
---------- ----------- ---------- ----------- ----------- ----------
Net expenses........... 165,068 17,029,683 1,316,441 876,048 1,447,831 850,071
---------- ----------- ---------- ----------- ----------- ----------
Net investment income.. 487,094 73,324,083 5,652,745 4,605,342 9,349,175 6,669,616
---------- ----------- ---------- ----------- ----------- ----------
REALIZED AND UNREALIZED
GAINS/(LOSSES) FROM
INVESTMENT ACTIVITIES:
Realized gains/(losses)
from investment
transactions............. -- (9,290,088) (825,070) 517,417 (1,442,590) (2,022,919)
Change in unrealized
appreciation/depreciation
from investments......... -- 3,530,500 30,025 (1,221,548) 763,779 3,133,197
---------- ----------- ---------- ----------- ----------- ----------
Net realized/unrealized
gains/(losses) from
investments.............. -- (5,759,588) (795,045) (704,131) (678,811) 1,110,278
---------- ----------- ---------- ----------- ----------- ----------
CHANGE IN NET ASSETS RESULTING
FROM OPERATIONS.............. $ 487,094 $67,564,495 $4,857,700 $3,901,211 $ 8,670,364 $7,779,894
========== =========== ========== =========== =========== ==========
</Table>
- --------------------------------------------------------------------------------
See notes to financial statements.
20
- --------------------------------------------------------------------------------
ASSET MANAGEMENT FUND
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEARS ENDED OCTOBER 31, 2004 AND 2003
- --------------------------------------------------------------------------------
<Table>
<Caption>
MONEY MARKET FUND
------------------------------
YEAR ENDED YEAR ENDED
OCTOBER 31, OCTOBER 31,
2004 2003
- --------------------------------------------------------------------------------------------
Increase (decrease) in net assets:
Operations:
Net investment income.................................. $ 487,094 $ 421,206
------------- -------------
Change in net assets resulting from operations....... 487,094 421,206
------------- -------------
Dividends paid to Class I stockholders:
From net investment income............................. (376,981) (330,837)
Dividends paid to Class D stockholders:
From net investment income............................. (110,113) (90,369)
------------- -------------
Total dividends paid to stockholders................. (487,094) (421,206)
------------- -------------
Capital Transactions Class I Shares:
Proceeds from sale of shares........................... 212,174,352 303,435,934
Shares issued to stockholders in reinvestment of
dividends............................................. 337,606 321,764
Cost of shares repurchased............................. (221,365,484) (293,591,768)
Capital Transactions Class D Shares:
Proceeds from sale of shares........................... 385,481,528 228,413,674
Shares issued to stockholders in reinvestment of
dividends............................................. 47,207 42,261
Cost of shares repurchased............................. (389,965,369) (219,969,777)
------------- -------------
Net increase (decrease) in net assets from capital
transactions........................................ (13,290,160) 18,652,088
------------- -------------
Total increase (decrease) in net assets.............. (13,290,160) 18,652,088
Net Assets:
Beginning of year......................................... 64,261,992 45,609,904
------------- -------------
End of year............................................... $ 50,971,832 $ 64,261,992
============= =============
Accumulated net investment income/(loss).................... -- --
</Table>
- --------------------------------------------------------------------------------
See notes to financial statements.
21
- --------------------------------------------------------------------------------
ASSET MANAGEMENT FUND
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEARS ENDED OCTOBER 31, 2004 AND 2003
- --------------------------------------------------------------------------------
<Table>
<Caption>
ADJUSTABLE RATE
MORTGAGE (ARM) FUND ULTRA SHORT FUND
--------------------------------------------------------------------
YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED
OCTOBER 31, OCTOBER 31, OCTOBER 31, OCTOBER 31,
2004 2003 2004 2003
- ------------------------------------------------------------------------------------------------------------
Increase (decrease) in net assets:
Operations:
Net investment income........... $ 73,324,083 $ 77,313,422 $ 5,652,745 $ 4,648,818
Net realized gains (losses) from
investments.................. (9,290,088) (9,360,230) (825,070) (448,262)
Change in unrealized
appreciation/depreciation
from investments............. 3,530,500 (2,967,734) 30,025 888,151
--------------- --------------- ------------- -------------
Change in net assets
resulting from
operations................. 67,564,495 64,985,458 4,857,700 5,088,707
--------------- --------------- ------------- -------------
Dividends paid to stockholders:
From net investment income...... (87,074,818) (100,452,092) (6,485,357) (6,019,913)
--------------- --------------- ------------- -------------
Total dividends paid to
stockholders............... (87,074,818) (100,452,092) (6,485,357) (6,019,913)
--------------- --------------- ------------- -------------
Capital Transactions:
Proceeds from sale of shares.... 2,244,424,388 4,920,698,520 185,331,981 202,953,038
Shares issued to stockholders in
reinvestment of dividends.... 50,798,140 64,449,754 3,213,793 3,481,425
Cost of shares repurchased...... (3,555,626,724) (3,742,718,116) (147,237,653) (240,951,312)
--------------- --------------- ------------- -------------
Change in net assets from
capital transactions....... (1,260,404,196) 1,242,430,158 41,308,121 (34,516,849)
--------------- --------------- ------------- -------------
Change in net assets......... (1,279,914,519) 1,206,963,524 39,680,464 (35,448,055)
Net Assets:
Beginning of year................. 4,596,938,902 3,389,975,378 251,668,049 287,116,104
--------------- --------------- ------------- -------------
End of year....................... $ 3,317,024,383 $ 4,596,938,902 $ 291,348,513 $ 251,668,049
=============== =============== ============= =============
Accumulated net investment
income/(loss)..................... $ (1,090,971) $ (2,683,640) $ 10,408 $ 7,706
</Table>
- --------------------------------------------------------------------------------
See notes to financial statements.
22
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
<Table>
<Caption>
SHORT U.S. GOVERNMENT INTERMEDIATE MORTGAGE U.S. GOVERNMENT
FUND FUND MORTGAGE FUND
- -----------------------------------------------------------------------------------------------
YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED
OCTOBER 31, OCTOBER 31, OCTOBER 31, OCTOBER 31, OCTOBER 31, OCTOBER 31,
2004 2003 2004 2003 2004 2003
- -----------------------------------------------------------------------------------------------
$ 4,605,342 $ 5,196,913 $ 9,349,175 $ 8,609,314 $ 6,669,616 $ 5,727,534
517,417 449,599 (1,442,590) (927,235) (2,022,919) (1,141,229)
(1,221,548) (2,071,854) 763,779 (3,511,347) 3,133,197 (2,323,780)
------------- ------------- ------------ ------------- ------------ -------------
3,901,211 3,574,658 8,670,364 4,170,732 7,779,894 2,262,525
------------- ------------- ------------ ------------- ------------ -------------
(5,009,529) (5,865,998) (10,181,481) (10,605,928) (7,450,517) (6,600,815)
------------- ------------- ------------ ------------- ------------ -------------
(5,009,529) (5,865,998) (10,181,481) (10,605,928) (7,450,517) (6,600,815)
------------- ------------- ------------ ------------- ------------ -------------
37,505,664 184,063,440 6,536,412 339,487,102 14,762,850 241,251,413
2,867,566 3,229,364 4,241,126 4,470,067 5,105,098 4,022,730
(118,618,032) (114,566,189) (58,816,046) (230,308,881) (57,895,104) (130,524,325)
------------- ------------- ------------ ------------- ------------ -------------
(78,244,802) 72,726,615 (48,038,508) 113,648,288 (38,027,156) 114,749,818
------------- ------------- ------------ ------------- ------------ -------------
(79,353,120) 70,435,275 (49,549,625) 107,213,092 (37,697,779) 110,411,528
232,605,208 162,169,933 347,857,665 240,644,573 204,565,734 94,154,206
------------- ------------- ------------ ------------- ------------ -------------
$ 153,252,088 $ 232,605,208 $298,308,040 $ 347,857,665 $166,867,955 $ 204,565,734
============= ============= ============ ============= ============ =============
$ (8,832) $ (21,680) $ (2,974) $ 9,957 $ (16,427) $ 5,917
</Table>
- --------------------------------------------------------------------------------
23
- --------------------------------------------------------------------------------
ASSET MANAGEMENT FUND
MONEY MARKET FUND CLASS I SHARES
FINANCIAL HIGHLIGHTS
SELECTED DATA FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD INDICATED.
- --------------------------------------------------------------------------------
<Table>
<Caption>
YEAR ENDED OCTOBER 31,
--------------------------------------------------------
2004 2003 2002 2001 2000
- --------------------------------------------------------------------------------------------------------
Net asset value, beginning of year.......... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
-------- -------- -------- -------- --------
Income from investment operations:
Net investment income..................... 0.0104 0.0096 0.0152 0.0441 0.0578
Net realized losses from investments...... -- -- -- -- --(a)
-------- -------- -------- -------- --------
Total from investment operations..... 0.0104 0.0096 0.0152 0.0441 0.0578
-------- -------- -------- -------- --------
Less distributions:
Dividends paid to stockholders:
From net investment income............. (0.0104) (0.0096) (0.0152) (0.0441) (0.0578)
-------- -------- -------- -------- --------
Net asset value, end of year................ $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
======== ======== ======== ======== ========
Total return................................ 1.04% 0.97% 1.54% 4.50% 5.93%
Ratios/Supplemental data:
Net assets, end of year (in 000's)........ $ 31,883 $ 40,737 $ 30,571 $ 45,491 $ 48,202
Ratio of expenses to average net assets... 0.11% 0.18% 0.26% 0.30% 0.30%
Ratio of net investment income to average
net assets............................. 1.04% 0.96% 1.53% 4.31% 5.74%
Ratio of expenses to average net
assets*................................ 0.41% 0.39% 0.41% 0.45% 0.45%
</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 were less than $0.00005.
See notes to financial statements.
24
- --------------------------------------------------------------------------------
ASSET MANAGEMENT FUND
MONEY MARKET FUND CLASS D SHARES
FINANCIAL HIGHLIGHTS
SELECTED DATA FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD INDICATED.
- --------------------------------------------------------------------------------
<Table>
<Caption>
DECEMBER 19,
YEAR ENDED OCTOBER 31, 1999(A) TO
-------------------------------------------- OCTOBER 31,
2004 2003 2002 2001 2000
- ----------------------------------------------------------------------------------------------------------
Net asset value, beginning of period...... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
-------- -------- -------- -------- --------
Income from investment operations:
Net investment income................... 0.0054 0.0046 0.0104 0.0397 0.0466
Net realized losses from investments.... -- -- -- -- --(b)
-------- -------- -------- -------- --------
Total from investment operations... 0.0054 0.0046 0.0104 0.0397 0.0466
-------- -------- -------- -------- --------
Less distributions:
Dividends paid to stockholders:
From net investment income........... (0.0054) (0.0046) (0.0104) (0.0397) (0.0466)
-------- -------- -------- -------- --------
Net asset value, end of period............ $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
======== ======== ======== ======== ========
Total return.............................. 0.54% 0.47% 1.05% 4.04% 4.74%(c)
Ratios/Supplemental data:
Net assets, end of period (in 000's).... $ 19,089 $ 23,525 $ 15,039 $ 8,787 $ 3,388
Ratio of expenses to average net
assets............................... 0.61% 0.67% 0.75% 0.75% 0.75%(d)
Ratio of net investment income to
average net assets................... 0.54% 0.45% 1.04% 3.46% 5.66%(d)
Ratio of expenses to average net
assets*.............................. 0.86% 0.84% 0.86% 0.91% 0.94%(d)
</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) Represents the total return for the period from December 19, 1999 to October
31, 2000.
(d) Annualized.
See notes to financial statements.
25
- --------------------------------------------------------------------------------
ASSET MANAGEMENT FUND
ADJUSTABLE RATE MORTGAGE (ARM) FUND
FINANCIAL HIGHLIGHTS
SELECTED DATA FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD INDICATED.
- --------------------------------------------------------------------------------
<Table>
<Caption>
YEAR ENDED OCTOBER 31,
----------------------------------------------------------------
2004 2003 2002 2001+ 2000
- --------------------------------------------------------------------------------------------------------
Net asset value, beginning of year.... $ 9.88 $ 9.95 $ 9.97 $ 9.86 $ 9.84
---------- ---------- ---------- ---------- --------
Income from investment operations:
Net investment income............... 0.1824 0.1778 0.2947 0.5319 0.6048
Net realized and unrealized gains
(losses) from investments........ (0.0070) (0.0230) 0.0124 0.1386 0.0233
---------- ---------- ---------- ---------- --------
Total from investment
operations.................. 0.1754 0.1548 0.3071 0.6705 0.6281
---------- ---------- ---------- ---------- --------
Less distributions:
Dividends paid to stockholders:
From net investment income....... (0.2254) (0.2248) (0.3271) (0.5605) (0.6129)
---------- ---------- ---------- ---------- --------
Change in net asset value............. (0.05) (0.07) (0.02) 0.11 0.02
---------- ---------- ---------- ---------- --------
Net asset value, end of year.......... $ 9.83 $ 9.88 $ 9.95 $ 9.97 $ 9.86
========== ========== ========== ========== ========
Total return.......................... 1.79% 1.57% 3.13% 6.98% 6.63%
Ratios/Supplemental data:
Net assets, end of year (in
000's)........................... $3,317,024 $4,596,939 $3,389,975 $2,064,844 $681,652
Ratio of expenses to average net
assets........................... 0.44% 0.44% 0.45% 0.49% 0.48%
Ratio of net investment income to
average net assets............... 1.92% 1.72% 2.91% 5.37% 6.22%
Ratio of expenses to average net
assets*.......................... 0.72% 0.71% 0.75% 0.79% 0.78%
Portfolio turnover rate............. 50% 117% 107% 72% 67%
</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.
See notes to financial statements.
26
- --------------------------------------------------------------------------------
ASSET MANAGEMENT FUND
ULTRA SHORT FUND
FINANCIAL HIGHLIGHTS
SELECTED DATA FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD INDICATED.
- --------------------------------------------------------------------------------
<Table>
<Caption>
YEAR ENDED OCTOBER 31, NOVEMBER 14,
----------------------- 2001(A) TO
2004 2003 OCTOBER 31, 2002
- ---------------------------------------------------------------------------------------------------------
Net asset value, beginning of period........................ $ 9.92 $ 9.95 $ 10.00
-------- -------- --------
Income from investment operations:
Net investment income..................................... 0.1985 0.1601 0.2204
Net realized and unrealized gains (losses) from
investments............................................ (0.0217) 0.0242 0.0058
-------- -------- --------
Total from investment operations..................... 0.1768 0.1843 0.2262
-------- -------- --------
Less distributions:
Dividends paid to stockholders:
From net investment income............................. (0.2268) (0.2143) (0.2762)
-------- -------- --------
Change in net asset value................................... (0.05) (0.03) (0.05)
-------- -------- --------
Net asset value, end of period.............................. $ 9.87 $ 9.92 $ 9.95
======== ======== ========
Total return................................................ 1.80% 1.87% 2.29%(b)
Ratios/Supplemental data:
Net assets, end of period (in 000's)...................... $291,349 $251,668 $287,116
Ratio of expenses to average net assets................... 0.47% 0.47% 0.50%(c)
Ratio of net investment income to average net assets...... 2.00% 1.66% 2.11%(c)
Ratio of expenses to average net assets*.................. 0.77% 0.77% 0.80%(c)
Portfolio turnover rate................................... 118% 126% 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.
27
- --------------------------------------------------------------------------------
ASSET MANAGEMENT FUND
SHORT U.S. GOVERNMENT FUND
FINANCIAL HIGHLIGHTS
SELECTED DATA FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD INDICATED.
- --------------------------------------------------------------------------------
<Table>
<Caption>
YEAR ENDED OCTOBER 31,
--------------------------------------------------------
2004 2003 2002 2001 2000
- --------------------------------------------------------------------------------------------------------
Net asset value, beginning of year.......... $ 10.68 $ 10.78 $ 10.75 $ 10.34 $ 10.36
-------- -------- -------- -------- --------
Income from investment operations:
Net investment income..................... 0.2640 0.2738 0.3512 0.5652 0.5973
Net realized and unrealized gains (losses)
from investments....................... (0.0415) (0.0686) 0.0674 0.4086 (0.0240)
-------- -------- -------- -------- --------
Total from investment operations..... 0.2225 0.2052 0.4186 0.9738 0.5733
-------- -------- -------- -------- --------
Less distributions:
Dividends paid to stockholders:
From net investment income............. (0.2925) (0.3052) (0.3886) (0.5638) (0.5976)
-------- -------- -------- -------- --------
Change in net asset value................... (0.07) (0.10) 0.03 0.41 (0.02)
-------- -------- -------- -------- --------
Net asset value, end of year................ $ 10.61 $ 10.68 $ 10.78 $ 10.75 $ 10.34
======== ======== ======== ======== ========
Total return................................ 2.11% 1.92% 3.98% 9.66% 5.77%
Ratios/Supplemental data:
Net assets, end of year (in 000's)........ $153,252 $232,605 $162,170 $191,632 $ 96,098
Ratio of expenses to average net assets... 0.48% 0.47% 0.49% 0.51% 0.51%
Ratio of net investment income to average
net assets............................. 2.50% 2.47% 3.35% 5.25% 5.79%
Portfolio turnover rate................... 152% 72% 75% 54% 138%
</Table>
- --------------------------------------------------------------------------------
See notes to financial statements.
28
- --------------------------------------------------------------------------------
ASSET MANAGEMENT FUND
INTERMEDIATE MORTGAGE FUND
FINANCIAL HIGHLIGHTS
SELECTED DATA FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD INDICATED.
- --------------------------------------------------------------------------------
<Table>
<Caption>
YEAR ENDED OCTOBER 31,
--------------------------------------------------------
2004 2003 2002 2001 2000
- --------------------------------------------------------------------------------------------------------
Net asset value, beginning of year.......... $ 9.62 $ 9.79 $ 9.83 $ 9.33 $ 9.33
-------- -------- -------- -------- --------
Income from investment operations:
Net investment income..................... 0.2892 0.2525 0.4155 0.5675 0.5754
Net realized and unrealized gains (losses)
from investments....................... (0.0233) (0.1156) (0.0213) 0.4861 0.0051
-------- -------- -------- -------- --------
Total from investment operations..... 0.2659 0.1369 0.3942 1.0536 0.5805
-------- -------- -------- -------- --------
Less distributions:
Dividends paid to stockholders:
From net investment income............. (0.3159) (0.3069) (0.4342) (0.5536) (0.5795)
-------- -------- -------- -------- --------
Change in net asset value................... (0.05) (0.17) (0.04) 0.50 0.00
-------- -------- -------- -------- --------
Net asset value, end of year................ $ 9.57 $ 9.62 $ 9.79 $ 9.83 $ 9.33
======== ======== ======== ======== ========
Total return................................ 2.81% 1.41% 4.13% 11.59% 6.47%
Ratios/Supplemental data:
Net assets, end of year (in 000's)........ $298,308 $347,858 $240,645 $204,891 $ 90,768
Ratio of expenses to average net assets... 0.47% 0.47% 0.47% 0.50% 0.51%
Ratio of net investment income to average
net assets............................. 3.02% 2.52% 4.28% 5.74% 6.25%
Ratio of expenses to average net
assets*................................ 0.57% 0.57% 0.57% 0.60% 0.61%
Portfolio turnover rate................... 148% 98% 54% 47% 110%
</Table>
- --------------------------------------------------------------------------------
* During the period, certain fees were voluntarily reduced. If such voluntary
fee reductions had not occurred, the ratios would have been as indicated.
See notes to financial statements.
29
- --------------------------------------------------------------------------------
ASSET MANAGEMENT FUND
U.S. GOVERNMENT MORTGAGE FUND
FINANCIAL HIGHLIGHTS
SELECTED DATA FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD INDICATED.
- --------------------------------------------------------------------------------
<Table>
<Caption>
YEAR ENDED OCTOBER 31,
--------------------------------------------------------
2004 2003 2002 2001 2000
- --------------------------------------------------------------------------------------------------------
Net asset value, beginning of year.......... $ 10.56 $ 10.77 $ 10.83 $ 10.27 $ 10.26
-------- -------- -------- -------- --------
Income from investment operations:
Net investment income..................... 0.3875 0.3689 0.5116 0.6381 0.6646
Net realized and unrealized gains (losses)
on investments......................... 0.0795 (0.1511) (0.0377) 0.5590 0.0109
-------- -------- -------- -------- --------
Total from investment operations..... 0.4670 0.2178 0.4739 1.1971 0.6755
-------- -------- -------- -------- --------
Less distributions:
Dividends paid to stockholders:
From net investment income............. (0.4370) (0.4278) (0.5339) (0.6371) (0.6682)
-------- -------- -------- -------- --------
Change in net asset value................... 0.03 (0.21) (0.06) 0.56 0.01
-------- -------- -------- -------- --------
Net asset value, end of year................ $ 10.59 $ 10.56 $ 10.77 $ 10.83 $ 10.27
======== ======== ======== ======== ========
Total return................................ 4.52% 2.04% 4.54% 11.99% 6.90%
Ratios/Supplemental data:
Net assets, end of year (in 000's)........ $166,868 $204,566 $ 94,154 $105,713 $ 71,449
Ratio of expenses to average net assets... 0.47% 0.47% 0.47% 0.50% 0.52%
Ratio of net investment income to average
net assets............................. 3.70% 3.39% 4.80% 6.09% 6.53%
Portfolio turnover rate................... 171% 102% 82% 86% 127%
</Table>
- --------------------------------------------------------------------------------
See notes to financial statements.
30
- --------------------------------------------------------------------------------
ASSET MANAGEMENT FUND
NOTES TO FINANCIAL STATEMENTS
OCTOBER 31, 2004
- --------------------------------------------------------------------------------
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 October 31, 2004, 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.
Under the Trust's organizational documents, its officers and trustees are
indemnified against certain liabilities arising out of the performance of their
duties to the Trust. In addition, in the normal course of business, the Trust
enters into contracts with its vendors and others that provide general
indemnification. Each Fund's maximum exposure under these arrangements is
unknown, as this would involve future claims that may be made against a Fund.
However, based on experience, the Trust expects the risk of loss to be remote.
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:
As of October 31, 2004, substantially all of the Funds' investments are fair
valued using matrix pricing methods. These matrix pricing methods, determined by
either an independent pricing service or the Adviser, incorporate market
quotations, prices provided directly by market makers and take into
consideration such factors as security prices, yields, maturities, and ratings.
Additionally, upon a significant valuation event, securities can be valued at
fair value by the Adviser, under procedures reviewed by the Board of Trustees.
Short-term instruments maturing within 60 days of the valuation date may be
valued based upon their amortized cost.
REPURCHASE AGREEMENTS
Repurchase agreements collateralized by obligations of the U.S. government or
its agencies 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
31
- --------------------------------------------------------------------------------
ASSET MANAGEMENT FUND
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
OCTOBER 31, 2004
- --------------------------------------------------------------------------------
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. If the counter-party
defaults, and the fair value of the collateral declines, realization of the
collateral by the Funds may be delayed or limited.
SECURITIES PURCHASED ON A WHEN-ISSUED OR DELAYED-DELIVERY BASIS
Each Fund, except the Money Market Fund, may purchase securities on a
when-issued or delayed-delivery basis. In when-issued transactions, securities
are bought or sold during the period between the announcement of an offering and
the issuance and payment date of the securities. When securities are purchased
on a delayed-delivery basis, the price of the securities is fixed at the time
the commitment to purchase is made, but settlement may take place at a future
date. By the time of delivery, securities purchased on a when-issued or
delayed-delivery basis may be valued at less than the purchase price. At the
time when-issued and delayed-delivery securities are purchased, the Fund must
set aside funds in a segregated account to pay for the purchase, and until
acquisition, the Fund will not earn any income on the securities that it
purchased.
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 anticipated 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. Paydown gains and losses on mortgage- and
asset-backed securities are recorded as adjustments to interest income in the
Statement of Operations.
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, and Rodger D. Shay, Jr., a member of the
Board of Trustees and the President of Shay Financial Services, Inc.
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 bil-
32
- --------------------------------------------------------------------------------
ASSET MANAGEMENT FUND
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
OCTOBER 31, 2004
- --------------------------------------------------------------------------------
lion. The Adviser is currently voluntarily waiving its entire fee. As of October
31, 2004, the assets for the Fund include a waived investment advisory fee
receivable in the amount of $6,953.
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. As
of October 31, 2004, the assets for the Fund include a waived investment
advisory fee receivable in the amount of $498,378.
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. As of October
31, 2004, the assets for the Fund include a waived investment advisory fee
receivable in the amount of $50,622.
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.
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. As of October 31, 2004, the assets for the Fund
include a waived investment advisory fee receivable in the amount of $25,249.
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
and Rodger D. Shay, Jr., a member of the Board of Trustees and the President of
Shay Financial Services, Inc.
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. For the fiscal year ended
October 31, 2004, the Distributor voluntarily waived its entire 12b-1 fee for
the Class I Shares of the Money Market Fund. The Money Market distribution fee
waiver amounted to $54,146 for Class I Shares for the year ended October 31,
2004. Effective November 1, 2004, the Distributor is waiving a portion of its
fee so that the Money Market Fund Class I Shares pays .05% of average daily net
assets. The assets for the Money Market Fund include a waived distribution fee
receivable in the amount of $4,472 for the Money Market Fund Class I Shares as
of October 31, 2004.
33
- --------------------------------------------------------------------------------
ASSET MANAGEMENT FUND
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
OCTOBER 31, 2004
- --------------------------------------------------------------------------------
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 $20,521 for Class D Shares for the year ended October 31, 2004. The
assets for the Money Market Fund include a waived distribution fee receivable in
the amount of $1,654 for the Money Market Fund Class D Shares as of October 31,
2004.
The distribution fee rate for each of 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 Adjustable Rate Mortgage (ARM) Fund and the Ultra Short Fund each pay
..15% of average daily net assets. The assets for the Funds include a waived
distribution fee receivable in the amount of $284,195 and $25,311, respectively,
as of October 31, 2004.
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"), fund accountant and transfer agent (the
"Transfer Agent"). BISYS, Ohio is a subsidiary of The BISYS Group, Inc. The fee
rate for BISYS, Ohio's services 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, with a minimum annual fee of
$393,200 for the Trust. BISYS, Ohio also receives a $15.00 per account per fund
annual processing fee.
34
- --------------------------------------------------------------------------------
ASSET MANAGEMENT FUND
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
OCTOBER 31, 2004
- --------------------------------------------------------------------------------
C. Transactions in shares of the Trust for the periods ended October 31, 2004
and October 31, 2003, were as follows:
- --------------------------------------------------------------------------------
<Table>
<Caption>
MONEY MARKET FUND
------------------------------------
YEAR ENDED YEAR ENDED
OCTOBER 31, 2004 OCTOBER 31, 2003
- ----------------------------------------------------------------------------------------------------
Share transactions Class I:
Sale of shares............................................ 212,174,352 303,435,935
Shares issued to stockholders in reinvestment dividends... 337,606 321,764
Shares repurchased........................................ (221,365,484) (293,591,768)
------------ ------------
Net increase (decrease)................................... (8,853,526) 10,165,931
Shares outstanding
Beginning of period.................................... 40,747,839 30,581,908
------------ ------------
End of period.......................................... 31,894,313 40,747,839
============ ============
Share transactions Class D:
Sale of shares............................................ 385,481,528 228,413,673
Shares issued to stockholders in reinvestment dividends... 47,207 42,261
Shares repurchased........................................ (389,965,369) (219,969,777)
------------ ------------
Net increase.............................................. (4,436,634) 8,486,157
Shares outstanding
Beginning of period.................................... 23,525,696 15,039,539
------------ ------------
End of period.......................................... 19,089,062 23,525,696
============ ============
</Table>
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
<Table>
<Caption>
ADJUSTABLE RATE ULTRA SHORT
MORTGAGE (ARM) FUND FUND
--------------------------------------------------------------------------
YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED
OCTOBER 31, 2004 OCTOBER 31, 2003 OCTOBER 31, 2004 OCTOBER 31, 2003
- ---------------------------------------------------------------------------------------------------------------
Share transactions:
Sale of shares................... 227,675,417 494,903,553 18,676,184 20,377,204
Shares issued to stockholders in
reinvestment of dividends..... 5,149,608 6,486,942 324,470 349,592
Shares repurchased............... (360,583,381) (376,937,871) (14,857,663) (24,210,819)
------------ ------------ ----------- -----------
Net increase (decrease).......... (127,758,356) 124,452,624 4,142,991 (3,484,023)
Shares outstanding
Beginning of period........... 465,065,263 340,612,639 25,363,254 28,847,277
------------ ------------ ----------- -----------
End of period................. 337,306,907 465,065,263 29,506,245 25,363,254
============ ============ =========== ===========
</Table>
- --------------------------------------------------------------------------------
35
- --------------------------------------------------------------------------------
ASSET MANAGEMENT FUND
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
OCTOBER 31, 2004
- --------------------------------------------------------------------------------
<Table>
<Caption>
SHORT U.S. INTERMEDIATE MORTGAGE
GOVERNMENT FUND FUND
-------------------------------------------------------------------------
YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED
OCTOBER 31, 2004 OCTOBER 31, 2003 OCTOBER 31, 2004 OCTOBER 31, 2003
- ---------------------------------------------------------------------------------------------------------------
Share transactions:
Sale of shares.................... 3,507,202 17,098,986 678,786 34,781,632
Shares issued to stockholders in
reinvestment of dividends...... 269,378 300,342 442,694 459,440
Shares repurchased................ (11,118,104) (10,660,144) (6,108,666) (23,684,181)
----------- ----------- ----------- -----------
Net increase (decrease)........... (7,341,524) 6,739,184 (4,987,186) 11,556,891
Shares outstanding
Beginning of period............ 21,782,871 15,043,687 36,145,665 24,588,774
----------- ----------- ----------- -----------
End of period.................. 14,441,347 21,782,871 31,158,479 36,145,665
=========== =========== =========== ===========
</Table>
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
<Table>
<Caption>
U.S. GOVERNMENT
MORTGAGE FUND
-----------------------------------
YEAR ENDED YEAR ENDED
OCTOBER 31, 2004 OCTOBER 31, 2003
- -------------------------------------------------------------------------------------------------
Share transactions:
Sale of shares............................................ 1,395,535 22,398,837
Shares issued to stockholders in reinvestment of
dividends.............................................. 484,542 375,997
Shares repurchased........................................ (5,487,343) (12,146,643)
----------- -----------
Net increase (decrease)................................... (3,607,266) 10,628,191
Shares outstanding
Beginning of period.................................... 19,367,358 8,739,167
----------- -----------
End of period.......................................... 15,760,092 19,367,358
=========== ===========
</Table>
- --------------------------------------------------------------------------------
36
- --------------------------------------------------------------------------------
ASSET MANAGEMENT FUND
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
OCTOBER 31, 2004
- --------------------------------------------------------------------------------
D. At October 31, 2004, Net Assets consisted of the following:
- --------------------------------------------------------------------------------
<Table>
<Caption>
ADJUSTABLE RATE SHORT U.S. U.S. GOVERNMENT
MONEY MARKET MORTGAGE ULTRA SHORT GOVERNMENT INTERMEDIATE MORTGAGE
FUND (ARM) FUND FUND FUND MORTGAGE FUND FUND
- ---------------------------------------------------------------------------------------------------------------------
Capital.............. $50,986,576 $3,369,092,872 $294,935,404 $154,796,447 $303,748,379 $170,294,320
Accumulated net
investment
income/(loss)...... -- (1,090,971) 10,408 (8,832) (2,974) (16,427)
Accumulated net
realized
gain/(loss)........ (14,744) (69,092,890) (4,851,996) (1,981,464) (8,434,705) (8,053,221)
Net unrealized
appreciation/
(depreciation) of
investments........ -- 18,115,372 1,254,697 445,937 2,997,340 4,643,283
----------- -------------- ------------ ------------ ------------ ------------
$50,971,832 $3,317,024,383 $291,348,513 $153,252,088 $298,308,040 $166,867,955
=========== ============== ============ ============ ============ ============
</Table>
- --------------------------------------------------------------------------------
E. At October 31, 2004, liabilities for the Funds included:
- --------------------------------------------------------------------------------
<Table>
<Caption>
ADJUSTABLE RATE SHORT U.S. INTERMEDIATE U.S. GOVERNMENT
MONEY MARKET MORTGAGE ULTRA SHORT GOVERNMENT MORTGAGE MORTGAGE
FUND (ARM) FUND FUND FUND FUND FUND
- ----------------------------------------------------------------------------------------------------------------------
Investment advisory
fee payable........ -- 710,498 63,277 32,495 63,122 35,314
Administration fee
payable............ 250 10,334 1,442 754 1,467 820
Distribution fee
payable............ 8,271 426,303 37,967 19,497 37,874 21,188
Distributions
payable............ 65,471 7,357,564 715,446 419,431 989,520 667,257
Securities Purchased
Payables........... -- -- -- -- -- 9,935,069
Other liabilities.... 10,964 345,729 37,493 24,625 38,665 24,387
</Table>
- --------------------------------------------------------------------------------
37
- --------------------------------------------------------------------------------
ASSET MANAGEMENT FUND
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
OCTOBER 31, 2004
- --------------------------------------------------------------------------------
F. In June 2004, the Financial Accounting Standards Board's Emerging Issues Task
Force issued EITF 03-01, 'The Meaning of Other-Than-Temporary Impairment and Its
application to Certain Investments'. The EITF contains guidance on the
determination of whether an investment is considered impaired and the
appropriate recording of any impairment loss. On September 30, 2004, the FASB
delayed the effective date of EITF 03-01 and extended the comment period for
certain aspects of the guidance. Although the EITF is not expected to have a
significant impact on the Funds' financial statements, the guidance as issued
could affect the Funds' Shareholders' financial reporting of investments in each
of the AMF Funds. At this time, it is unclear how this may impact a
Shareholder's decisions surrounding investments in these Funds.
G. FEDERAL INCOME TAX INFORMATION:
It is the policy of each Fund to continue to qualify as a regulated investment
company by complying with the provisions available to certain investment
companies, as defined in applicable sections of the Internal Revenue Code, and
to make distributions of net investment income and net realized capital gains
sufficient to relieve it from all, or substantially all, federal income taxes.
The tax characteristics of distributions paid to shareholders during the fiscal
years ended October 31, 2004 and 2003 were as follows:
- --------------------------------------------------------------------------------
<Table>
<Caption>
DISTRIBUTIONS TOTAL
PAID FROM TOTAL TAXABLE DISTRIBUTIONS
2004 ORDINARY INCOME DISTRIBUTIONS PAID*
- ---------------------------------------------------------------------------------------------------------
Money Market Fund..................................... $ 459,677 $ 459,677 $ 459,677
ARM Fund.............................................. 88,027,977 88,027,977 88,027,977
Ultra Short Fund...................................... 6,224,669 6,224,669 6,224,669
Short U.S. Government Fund............................ 5,102,598 5,102,598 5,102,598
Intermediate Mortgage Fund............................ 10,023,237 10,023,237 10,023,237
U.S. Government Mortgage Fund......................... 7,396,992 7,396,992 7,396,992
</Table>
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
<Table>
<Caption>
DISTRIBUTIONS TOTAL
PAID FROM TOTAL TAXABLE DISTRIBUTIONS
2003 ORDINARY INCOME DISTRIBUTIONS PAID*
- ---------------------------------------------------------------------------------------------------------
Money Market Fund..................................... $ 436,473 $ 436,473 $ 436,473
ARM Fund.............................................. 100,691,032 100,691,032 100,691,032
Ultra Short Fund...................................... 6,161,647 6,161,647 6,161,647
Short U.S. Government Fund............................ 5,829,192 5,829,192 5,829,192
Intermediate Mortgage Fund............................ 10,619,213 10,619,213 10,619,213
U.S. Government Mortgage Fund......................... 6,375,143 6,375,143 6,375,143
</Table>
- --------------------------------------------------------------------------------
* Total distributions paid differ from the Statement of Changes in Net Assets
because dividends are recognized when actually paid for tax purposes.
38
- --------------------------------------------------------------------------------
ASSET MANAGEMENT FUND
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
OCTOBER 31, 2004
- --------------------------------------------------------------------------------
As of October 31, 2004 the components of accumulated earnings/(deficit) on a tax
basis was as follows:
- --------------------------------------------------------------------------------
<Table>
<Caption>
TOTAL
UNDISTRIBUTED ACCUMULATED UNREALIZED ACCUMULATED
ORDINARY ACCUMULATED DISTRIBUTIONS CAPITAL AND APPRECIATION/ EARNINGS/
INCOME EARNINGS PAYABLE OTHER LOSSES** (DEPRECIATION)*** DEFICIT)
- ---------------------------------------------------------------------------------------------------------------------------------
Money Market Fund.......... $ 65,471 $ 65,471 $ (65,471) $ (14,744) -- $ (14,744)
ARM Fund................... 6,266,593 6,266,593 (7,357,564) (69,092,890) 18,115,372 (52,068,489)
Ultra Short Fund........... 725,855 725,855 (715,446) (4,807,712) 1,210,412 (3,586,891)
Short U.S. Government
Fund..................... 410,599 410,599 (419,431) (1,966,497) 430,970 (1,544,359)
Intermediate Mortgage
Fund..................... 986,545 986,545 (989,520) (8,434,704) 2,997,340 (5,440,339)
U.S. Government Mortgage
Fund..................... 650,831 650,831 (667,257) (7,916,501) 4,506,562 (3,426,365)
</Table>
- --------------------------------------------------------------------------------
** For tax purposes at October 31, 2004, the following Funds had capital loss
carryforwards. All losses are available to offset future realized capital
gains, if any.
<Table>
<Caption>
FUND AMOUNT EXPIRES
- -----------------------------------------------------------------------------------
Money Market Fund........................................... $ 14,744 2008
ARM Fund.................................................... 1,301,928 2006
ARM Fund.................................................... 4,959,047 2007
ARM Fund.................................................... 1,824,665 2008
ARM Fund.................................................... 2,995,058 2010
ARM Fund.................................................... 33,378,700 2011
ARM Fund.................................................... 24,633,492 2012
Ultra Short Fund............................................ 1,342,312 2010
Ultra Short Fund............................................ 1,849,300 2011
Ultra Short Fund............................................ 1,616,100 2012
Short U.S. Government Fund.................................. 642,561 2007
Short U.S. Government Fund.................................. 1,193,651 2008
Short U.S. Government Fund.................................. 130,285 2011
Intermediate Mortgage Fund.................................. 817,175 2007
Intermediate Mortgage Fund.................................. 2,029,049 2008
Intermediate Mortgage Fund.................................. 312,894 2010
Intermediate Mortgage Fund.................................. 3,013,622 2011
Intermediate Mortgage Fund.................................. 2,261,964 2012
U.S. Government Mortgage Fund............................... 124,825 2005
U.S. Government Mortgage Fund............................... 802,809 2007
U.S. Government Mortgage Fund............................... 2,276,740 2008
U.S. Government Mortgage Fund............................... 181,530 2010
U.S. Government Mortgage Fund............................... 1,808,782 2011
U.S. Government Mortgage Fund............................... 2,721,815 2012
</Table>
- --------------------------------------------------------------------------------
***The differences between book-basis and tax-basis unrealized
appreciation/(depreciation) is attributable primarily to: tax deferral of
losses on wash sales and the difference between book and tax amortization
methods for premium and market discounts.
39
- --------------------------------------------------------------------------------
ASSET MANAGEMENT FUND
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
OCTOBER 31, 2004
- --------------------------------------------------------------------------------
H. For the year ended October 31, 2004, purchases and proceeds from
sales/maturities of securities, other than short-term investments, were as
follows:
- --------------------------------------------------------------------------------
<Table>
<Caption>
ADJUSTABLE RATE SHORT U.S.
MORTGAGE (ARM) ULTRA SHORT GOVERNMENT INTERMEDIATE U.S. GOVERNMENT
FUND FUND FUND MORTGAGE FUND MORTGAGE FUND
- ------------------------------------------------------------------------------------------------------------
Purchases.............. $1,773,144,335 $367,916,859 $270,266,429 $436,800,952 $293,061,348
============== ============ ============ ============ ============
Sales and Maturities... $2,898,365,566 $317,600,094 $340,071,959 $452,001,463 $290,294,404
============== ============ ============ ============ ============
</Table>
- --------------------------------------------------------------------------------
40
- --------------------------------------------------------------------------------
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
To the Trustees and Shareholders
of the Asset Management Fund:
In our opinion, the accompanying statements of net assets and the related
statements of operations and of changes in net assets and the financial
highlights present fairly, in all material respects, the financial position of
the Money Market Fund, Adjustable Rate Mortgage (ARM) Fund, Ultra Short Fund,
Short U.S. Government Fund, Intermediate Mortgage Fund, and the U.S. Government
Mortgage Fund (collectively referred to as the "Funds") at October 31, 2004, the
results of their operations for the year then ended, the changes in their net
assets for each of the two years in the period then ended and the financial
highlights for each of the periods presented, in conformity with accounting
principles generally accepted in the United States of America. These financial
statements and financial highlights (hereafter referred to as "financial
statements") are the responsibility of the Funds' management; our responsibility
is to express an opinion on these financial statements based on our audits. We
conducted our audits of these financial statements in accordance with the
standards of the Public Company Accounting Oversight Board (United States).
Those standards require that we plan and perform the audits to obtain reasonable
assurance about whether the financial statements are free of material
misstatement. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements, assessing the
accounting principles used and significant estimates made by management, and
evaluating the overall financial statement presentation. We believe that our
audits, which included confirmation of securities at October 31, 2004 by
correspondence with the custodian and brokers, provide a reasonable basis for
our opinion.
PricewaterhouseCoopers LLP
Columbus, Ohio
December 27, 2004
41
- --------------------------------------------------------------------------------
ASSET MANAGEMENT FUND
(UNAUDITED)
TRUSTEES AND OFFICERS OF ASSET MANAGEMENT FUND
- --------------------------------------------------------------------------------
<Table>
<Caption>
NUMBER OF
POSITION(S) HELD WITH PORTFOLIOS IN OTHER
TRUST, LENGTH OF TIME PRINCIPAL OCCUPATION(S) FUND COMPLEX DIRECTORSHIPS
NAME, ADDRESS AND AGE SERVED AND TERM OF OFFICE DURING PAST 5 YEARS OVERSEEN HELD
- ------------------------------------------------------------------------------------------------------------------------------------
INDEPENDENT TRUSTEES
Richard M. Amis Trustee since 1997. President, First Federal Community 6 First Financial Trust
630 Clarksville Street Indefinite Term of Office Bank since 1984; Director, First Company
Paris, TX 75460 Financial Trust Company since 1993
Age: 54
Arthur G. De Russo Trustee since 1993. Retired; Chief Executive Officer, 6 None
5397 S.E. Major Way Indefinite Term of Office Eastern Financial Federal Credit
Stuart, FL 34997 Union Trust Co., Inc. from 1968 to
Age: 83 1992
David F. Holland Trustee since 1993 and Chairman of the Board, Chief 6 New England College
17 New England Executive Park from 1988 to 1989. Executive Officer and President of of Finance
Burlington, MA 01803 Indefinite Term of Office BostonFed Bancorp Inc. since 1995
Age: 63
Gerald J. Levy Vice Chairman of the Board Chairman and Director, Guaranty 6 FISERV, Inc.;
4000 W. Brown Deer Road and Trustee since 1982. Bank, F.S.B. since 1984 Republic Mortgage
Milwaukee, WI 53209 Indefinite Term of Office Insurance Company
Age: 72
William A. McKenna, Jr. Trustee since 2002. Retired; Chairman and Chief 7 Asset Management Fund
71-02 Forest Avenue Indefinite Term of Office Executive Officer Ridgewood Large Cap Equity
Ridgewood, NY 11385 Savings Bank from 1992 to 2003 Institutional Fund,
Age: 68 Inc.; RSI Retirement
Trust; St. Joseph's
College; St.
Vincent's Services;
Boys Hope Girls Hope;
Calvary Hospital
Fund; Retirement
System Group, Inc.
INTERESTED TRUSTEES(1)
Rodger D. Shay(2) Chairman of the Board Chairman and Director of Shay 6 Horizon Bank, FSB
1000 Brickell Avenue since 1993 and Trustee Assets Management, Inc. since 1997
Miami, FL 33131 from 1985 to 1990.
Age: 68 Indefinite Term of Office
Rodger D. Shay, Jr.(2) Trustee since 2002. President and Chief Executive 6 Family Financial
1000 Brickell Avenue Indefinite Term of Office Officer of Shay Financial Holdings, LLC; First
Miami, FL 33131 Services, Inc. since 1997 Financial Bank and
Age: 45 Trust
</Table>
- ---------------
(1) A trustee is an "interested person" of the Trust under the 1940 Act because
he holds certain positions with the Trust's Distributor and/or Investment
Adviser and because of his financial interest in Shay Investment Services,
Inc., parent company of the Trust's Investment Adviser, Shay Assets
Management, Inc., and Distributor, Shay Financial Services, Inc.
(2) Rodger D. Shay, Jr., Trustee, is the son of Rodger D. Shay, Sr., Chairman of
the Board of Trustees and Trustee.
42
- --------------------------------------------------------------------------------
ASSET MANAGEMENT FUND
(UNAUDITED)
TRUSTEES AND OFFICERS OF ASSET MANAGEMENT FUND (CONTINUED)
<Table>
<Caption>
NUMBER OF
POSITION(S) HELD WITH PORTFOLIOS IN OTHER
TRUST, LENGTH OF TIME PRINCIPAL OCCUPATION(S) FUND COMPLEX DIRECTORSHIPS
NAME, ADDRESS AND AGE SERVED AND TERM OF OFFICE DURING PAST 5 YEARS OVERSEEN HELD
- ------------------------------------------------------------------------------------------------------------------------------------
OFFICERS
Edward E. Sammons, Jr. President since 1998. Term President of Shay Assets 6 None
230 West Monroe Street of Office Expires 2005 Management, Inc. since 1997
Chicago, IL 60606
Age: 65
Robert T. Podraza Vice President and Vice President and Chief 6 None
1000 Brickell Avenue Assistant Treasurer since Compliance Officer of Shay
Miami, FL 33131 1998. Term of Office Financial Services, Inc. since
Age: 60 Expires 2005 1990 and 1997, respectively
Trent M. Statczar Treasurer since 2002. Term Financial Services Vice President 7 None
3435 Stelzer Road of Office Expires 2005 since 2003 and prior thereto
Columbus, OH 43219 Director and Financial Services
Age: 33 Manager, BISYS Investment Services
Ohio, Inc.
Daniel K. Ellenwood Secretary since 1998. Term Chief Compliance Officer since 6 None
230 West Monroe Street of Office Expires 2005 2004 and prior thereto
Chicago, IL 60606 Operations/Compliance Officer,
Age: 35 Shay Assets Management, Inc.
Frederick J. Schmidt Chief Compliance Officer Senior Vice President and Chief 7 None
90 Park Avenue 10th Floor since 2004. Term of Office Compliance Officer, BISYS Fund
New York, NY 10016 Expires 2005 Services since 2004; President,
Age: 45 FJS Associates from 2002 to 2004.
Christine A. Cwik Assistant Secretary since Executive Secretary, Shay Assets 6 None
230 West Monroe Street 1999. Term of Office Management, Inc. since 1999
Chicago, IL 60606 Expires 2005
Age: 55
Alaina V. Metz Assistant Secretary since Vice President since 2002 and 7 None
3435 Stelzer Road 1999 and Assistant prior thereto Chief Administrative
Columbus, OH 43219 Treasurer since 2002. Term Officer, BISYS Fund Services Ohio,
Age: 37 of Office Expires 2005 Inc.
</Table>
43
- --------------------------------------------------------------------------------
ASSET MANAGEMENT FUND
ADDITIONAL INFORMATION (UNAUDITED)
OCTOBER 31, 2004
- --------------------------------------------------------------------------------
A. SECURITY ALLOCATION:
MONEY MARKET FUND
- --------------------------------------------------------------------------------
<Table>
<Caption>
PERCENTAGE OF
SECURITY ALLOCATION NET ASSETS
- ---------------------------------------------------------------------------
Agency Obligations.......................................... 68.5%
Repurchase Agreements....................................... 31.6%
-----
Total....................................................... 100.1%
=====
</Table>
- --------------------------------------------------------------------------------
ARM FUND
- --------------------------------------------------------------------------------
<Table>
<Caption>
PERCENTAGE OF
SECURITY ALLOCATION NET ASSETS
- ---------------------------------------------------------------------------
Adjustable Rate Mortgage-Related Securities................. 78.7%
Fixed Rate Mortgage-Related Securities...................... 13.9%
Repurchase Agreements....................................... 6.6%
U.S. Treasury Obligations................................... 0.6%
-----
Total....................................................... 99.8%
=====
</Table>
- --------------------------------------------------------------------------------
ULTRA SHORT FUND
- --------------------------------------------------------------------------------
<Table>
<Caption>
PERCENTAGE OF
SECURITY ALLOCATION NET ASSETS
- ---------------------------------------------------------------------------
Adjustable Rate Mortgage-Related Securities................. 84.1%
Fixed Rate Mortgage-Related Securities...................... 13.9%
U.S. Treasury Obligations................................... 1.0%
Repurchase Agreements....................................... 0.8%
-----
Total....................................................... 99.8%
=====
</Table>
- --------------------------------------------------------------------------------
SHORT U.S. GOVERNMENT FUND
- --------------------------------------------------------------------------------
<Table>
<Caption>
PERCENTAGE OF
SECURITY ALLOCATION NET ASSETS
- ---------------------------------------------------------------------------
Fixed Rate Mortgage-Related Securities...................... 44.1%
Adjustable Rate Mortgage-Related Securities................. 36.6%
U.S. Treasury Obligations................................... 15.1%
Repurchase Agreements....................................... 3.7%
-----
Total....................................................... 99.5%
=====
</Table>
- --------------------------------------------------------------------------------
44
- --------------------------------------------------------------------------------
ASSET MANAGEMENT FUND
ADDITIONAL INFORMATION (UNAUDITED) (CONTINUED)
OCTOBER 31, 2004
- --------------------------------------------------------------------------------
INTERMEDIATE MORTGAGE FUND
- --------------------------------------------------------------------------------
<Table>
<Caption>
PERCENTAGE OF
SECURITY ALLOCATION NET ASSETS
- ---------------------------------------------------------------------------
Fixed Rate Mortgage-Related Securities...................... 68.5%
Adjustable Rate Mortgage-Related Securities................. 22.2%
U.S. Treasury Obligations................................... 4.4%
Repurchase Agreements....................................... 4.2%
Agency Obligations.......................................... 0.7%
-----
Total....................................................... 100.0%
=====
</Table>
- --------------------------------------------------------------------------------
U.S. GOVERNMENT MORTGAGE FUND
- --------------------------------------------------------------------------------
<Table>
<Caption>
PERCENTAGE OF
SECURITY ALLOCATION NET ASSETS
- ---------------------------------------------------------------------------
Fixed Rate Mortgage-Related Securities...................... 91.7%
U.S. Treasury Obligations................................... 11.0%
Agency Obligations.......................................... 2.0%
Repurchase Agreements....................................... 1.2%
-----
Total....................................................... 105.9%
=====
</Table>
- --------------------------------------------------------------------------------
B. EXPENSE COMPARISON:
EXPENSE COMPARISON:
As a shareholder of Asset Management Fund you incur ongoing costs, including
management fees; distribution (12b-1) fees; and other Fund expenses. This
example is intended to help you understand your ongoing costs (in dollars) of
investing in Asset Management Fund and to compare these costs with the ongoing
costs of investing in other mutual funds.
The Example is based on an investment of $1,000 invested at the beginning of
the period and held for the entire 6 month period from May 1, 2004 through
October 31, 2004.
45
- --------------------------------------------------------------------------------
ASSET MANAGEMENT FUND
ADDITIONAL INFORMATION (UNAUDITED) (CONTINUED)
OCTOBER 31, 2004
- --------------------------------------------------------------------------------
ACTUAL EXPENSES
The table below provides information about actual account values and actual
expenses. You may use the information below, together with the amount you
invested, to estimate the expenses that you paid over the period. Simply divide
your account value by $1,000 (for example, an $8,600 account value divided by
$1,000 = 8.6), then multiply the result by the number in the table under the
heading entitled "Expenses Paid During Period" to estimate the expenses you paid
on your account during this period.
- --------------------------------------------------------------------------------
<Table>
<Caption>
BEGINNING ENDING ACCOUNT EXPENSE PAID EXPENSE RATIO
ACCOUNT VALUE VALUE DURING PERIOD* DURING PERIOD**
5/1/04 10/31/04 5/1/04 - 10/31/04 5/1/04 - 10/31/04
- ------------------------------------------------------------------------------------------------------------
Money Market Fund......... Class I $1,000.00 $1,003.50 $0.60 0.12%
Class D 1,000.00 1,006.00 3.13 0.62%
ARM Fund.................. 1,000.00 1,008.90 2.22 0.44%
Ultra Short Fund.......... 1,000.00 1,008.20 2.37 0.47%
Short U.S. Government
Fund.................... 1,000.00 1,014.80 2.38 0.47%
Intermediate Mortgage
Fund.................... 1,000.00 1,024.30 2.34 0.46%
U.S. Government Mortgage
Fund.................... 1,000.00 1,039.00 2.41 0.47%
</Table>
- --------------------------------------------------------------------------------
* Expenses are equal to the average account value times the fund's annualized
expense ratio multiplied by the number of days in the most recent fiscal
half-year divided by the number of days in the fiscal year.
** Annualized.
46
- --------------------------------------------------------------------------------
ASSET MANAGEMENT FUND
ADDITIONAL INFORMATION (UNAUDITED) (CONTINUED)
OCTOBER 31, 2004
- --------------------------------------------------------------------------------
HYPOTHETICAL EXAMPLE FOR COMPARISON PURPOSES
The table below provides information about hypothetical account values and
hypothetical expenses based on each Fund's actual expense ratio and an assumed
rate of return of 5% per year before expenses, which is not the Fund's actual
return. The hypothetical account values and expenses may not be used to estimate
the actual ending account balance or expenses you paid for the period. You may
use this information to compare this 5% hypothetical example with the 5%
hypothetical examples that appear in the shareholder reports of other funds.
- --------------------------------------------------------------------------------
<Table>
<Caption>
BEGINNING ENDING ACCOUNT EXPENSE PAID EXPENSE RATIO
ACCOUNT VALUE VALUE DURING PERIOD* DURING PERIOD**
5/1/04 10/31/04 5/1/04 - 10/31/04 5/1/04 - 10/31/04
- ------------------------------------------------------------------------------------------------------------
Money Market Fund......... Class I $1,000.00 $1,024.53 $0.61 0.12%
Class D 1,000.00 1,022.02 3.15 0.62%
ARM Fund.................. 1,000.00 1,022.92 2.24 0.44%
Ultra Short Fund.......... 1,000.00 1,022.77 2.39 0.47%
Short U.S. Government
Fund.................... 1,000.00 1,022.77 2.39 0.47%
Intermediate Mortgage
Fund.................... 1,000.00 1,022.82 2.34 0.46%
U.S. Government Mortgage
Fund.................... 1,000.00 1,022.77 2.39 0.47%
</Table>
- --------------------------------------------------------------------------------
* Expenses are equal to the average account value times the fund's annualized
expense ratio multiplied by the number of days in the most recent fiscal
half-year divided by the number of days in the fiscal year.
** Annualized.
C. OTHER INFORMATION:
A description of the policies and procedures that the Funds use to determine
how to vote proxies relating to portfolio securities is available (i) without
charge, upon request, by calling 800-527-3713; and (ii) on the Securities and
Exchange Commission's website at http://www.sec.gov.
Information regarding how the Funds voted proxies relating to portfolio
securities during the most recent 12 month period ended June 30 is available (i)
without charge, upon request, by calling 800-527-3713; and (ii) on the
Securities and Exchange Commission's website at http://www.sec.gov.
Beginning with the fiscal quarter ended July 31, 2004, a complete schedule of
each Fund's portfolio holdings for the first and third fiscal quarter of each
fiscal year is filed with the Securities and Exchange Commission on Form N-Q and
is available on the Securities and Exchange Commission's website at
http://www.sec.gov. In addition, the schedules may be reviewed and copied at the
Securities and Exchange Commission's Public Reference Room in Washington D.C.
Information on the operation of the Public Reference Room may be obtained by
calling 1-800-SEC-0330.
The Statement of Additional Information includes additional information about
Trustees and is available, without charge, upon request by calling 800-527-3713.
47
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
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
4001 Stonewood Drive/Wexford, PA 15090
800-224-5177
350 Springfield Avenue/Summit, NJ 07091
800-553-6159
1035 Market Tower/Indianapolis, IN 46204
800-879-9958
- --------------------------------------------------------------------------------
ACCOUNT INFORMATION
- --------------------------------------------------------------------------------
To obtain performance data and other account information, call toll free
800-527-3713.
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
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, P.C.
222 North LaSalle Street
Chicago, IL 60601
CUSTODIAN
The Bank of New York
100 Church Street, 10th Fl.
New York, NY 10286
INDEPENDENT REGISTERED PUBLIC
ACCOUNTING FIRM
PricewaterhouseCoopers LLP
100 East Broad Street, Suite 2100
Columbus, OH 43215
ITEM 2. CODE OF ETHICS.
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.
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. THIS CODE OF ETHICS IS INCLUDED AS EXHIBIT 11 (a)(1).
The registrant must briefly describe the nature of any amendment, during
the period covered by the report, to a provision of its 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, and that relates to any
element of the code of ethics definition enumerated in paragraph (b) of
this Item. The registrant must file a copy of any such amendment as an
exhibit pursuant to Item 11(a)(1), unless the registrant has elected to
satisfy paragraph (f) of this Item by posting its code of ethics on its
website pursuant to paragraph (f)(2) of this Item, or by undertaking to
provide its code of ethics to any person without charge, upon request,
pursuant to paragraph (f)(3) of this Item.
If the registrant has, during the period covered by the report, granted a
waiver, including an implicit waiver, from a provision of the 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, that relates
to one or more items set forth in paragraph (b) of this Item, the
registrant must briefly describe the nature of the waiver, the name of the
person to whom the waiver was granted, and the date of the waiver.
DURING THE PERIOD COVERED BY THE REPORT, WITH RESPECT TO THE REGISTRANT'S
CODE OF ETHICS THAT APPLIES TO ITS PRINCIPAL EXECUTIVE OFFICER, PRINCIPAL
FINANCIAL OFFICER, PRINCIPAL ACCOUNTING OFFICER OR CONTROLLER, OR PERSONS
PERFORMING SIMILAR FUNCTIONS; THERE HAVE BEEN NO AMENDMENTS TO, NOR ANY
WAIVERS GRANTED FROM, A PROVISION THAT RELATES TO ANY ELEMENT OF THE CODE
OF ETHICS DEFINITION ENUMERATED IN PARAGRAPH (b) OF THIS ITEM 2.
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.
3(a)(1) THE REGISTRANT'S BOARD OF DIRECTORS HAS DETERMINED THAT THE REGISTRANT
HAS AT LEAST ONE AUDIT COMMITTEE FINANCIAL EXPERT SERVING ON ITS AUDIT
COMMITTEE.
3(a)(2) THE AUDIT COMMITTEE FINANCIAL EXPERT IS DAVID F. HOLLAND, WHO IS
"INDEPENDENT" FOR PURPOSES OF THIS ITEM 3 OF FORM N-CSR.
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 pursuant to paragraph
(c)(7)(ii) of Rule 2-01 of Regulation S-X is compatible with maintaining the
principal accountant's independence.
4(a) AUDIT FEES
2003 AUDIT PRICEWATERHOUSECOOPERS LLP $ 102,000
2004 AUDIT PRICEWATERHOUSECOOPERS LLP $ 105,000
4(b) AUDIT- RELATED FEES
2003 $ 0
2004 $ 0
4(c) TAX FEES
2003 TAX AUDIT & RETURNS PRICEWATERHOUSECOOPERS LLP $ 16,050
2004 TAX AUDIT & RETURNS/TAX ACCOUNTING OF AMORT/ACCRET OF MORTGAGE BACKED
SECURITIES
PRICEWATERHOUSECOOPERS LLP $ 22,500
4(d) ALL OTHER FEES
2003 $ 0
2004 $ 0
4(e)(1) DISCLOSE THE AUDIT COMMITTEE'S PRE-APPROVAL POLICIES AND PROCEDURE
DESCRIBED IN PARAGRAPH (c) (7) OF RULE 2-01 OF REGULATION S-X
1. PRE-APPROVE ANY ENGAGEMENT OF THE INDEPENDENT AUDITORS TO PROVIDE ANY
NON-PROHIBITED SERVICES TO THE FUND, INCLUDING THE FEES AND OTHER
COMPENSATION TO BE PAID TO THE INDEPENDENT AUDITORS.
- - THE CHAIRMAN OF THE AUDIT COMMITTEE MAY GRANT THE PRE-APPROVAL OF SERVICES
TO THE FUND FOR NON-PROHIBITED SERVICES FOR ENGAGEMENTS OF LESS THAN
$5,000. ALL SUCH DELEGATED PRE-APPROVALS SHALL BE PRESENTED TO THE AUDIT
COMMITTEE NO LATER THAN THE NEXT AUDIT COMMITTEE MEETING.
2. PRE-APPROVE ANY ENGAGEMENT OF THE INDEPENDENT AUDITORS, INCLUDING THE FEES
AND OTHER COMPENSATION TO BE PAID TO THE INDEPENDENT AUDITORS, TO PROVIDE
ANY NON-AUDIT SERVICES TO THE ADVISER (OR ANY "CONTROL AFFILIATE" OF THE
ADVISER PROVIDING ONGOING SERVICES TO THE FUND), IF THE ENGAGEMENT RELATES
DIRECTLY TO THE OPERATIONS AND FINANCIAL REPORTING OF THE FUND.
- - THE CHAIRMAN OF THE AUDIT COMMITTEE MAY GRANT THE PRE-APPROVAL FOR
NON-PROHIBITED SERVICES TO THE ADVISER FOR ENGAGEMENTS OF LESS THAN
$5,000. ALL SUCH DELEGATED PRE-APPROVALS SHALL BE PRESENTED TO THE AUDIT
COMMITTEE NO LATER THAN THE NEXT AUDIT COMMITTEE MEETING.
4(e)(2) 0% FOR 2003 AND 2004.
4(f) 0% AUDIT WORK PERFORMED BY PERSONS OTHER THAN THE PRINCIPLE ACCOUNTANT'S
FULL-TIME, PERMANENT EMPLOYEES FOR 2003 AND 2004.
4(g) $ 0.00 FOR 2003 AND 2004.
4(h) THERE WERE NO NON-AUDIT SERVICES BILLED FOR 2003 AND 2004
ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS.
(a) If the registrant is a listed issuer as defined in Rule 10A-3
under the Exchange Act (17CFR 240.10A-3), state whether or not
the registrant has a separately-designated standing audit
committee established in accordance with Section 3(a)(58)(A)
of the Exchange Act (15 U.S.C. 78c(a)(58)(A)). If the
registrant has such a committee, however designated, identify
each committee member. If the entire board of directors is
acting as the registrant's audit committee as specified in
Section 3(a)(58)(B) of the Exchange Act (15 U.S.C.
78c(a)(58)(B)), so state.
(b) If applicable, provide the disclosure required by Rule
10A-3(d) under the Exchange Act (17CFR 240.10A-3(d)) regarding
an exemption from the listing standards for all audit
committees.
NOT APPLICABLE.
ITEM 6. SCHEDULE OF INVESTMENTS.
File Schedule I - Investments in securities of unaffiliated issuers as of the
close of the reporting period as set forth in Section 210.12-12 of Regulation
S-X, unless the schedule is included as part of the report to shareholders filed
under Item 1 of this Form.
NOT APPLICABLE.
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. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT
COMPANY AND AFFILIATED PURCHASERS.
If the registrant is a closed-end management investment company, provide the
information specified in paragraph (b) of this Item with respect to any purchase
made by or on behalf of the registrant or any "affiliated purchaser," as defined
in Rule 10b-18(a)(3) under the Exchange Act (17 CFR 240.10b-18(a)(3)), of shares
or other units of any class of the registrant's equity securities that is
registered by the registrant pursuant to Section 12 of the Exchange Act (15
U.S.C. 781).
NOT APPLICABLE.
ITEM 9. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.
Describe any material changes to the procedures by which shareholders may
recommend nominees to the registrant's board of directors, where those changes
were implemented after the registrant last provided disclosure in response to
the requirements of Item 7(d)(2)(ii)(G) of Schedule 14A (17 CFR 240.14a-101), or
this Item.
NOT APPLICABLE.
ITEM 10. CONTROLS AND PROCEDURES.
(a) Disclose the conclusions of the registrant's principal executive
and principal financial officers, or persons performing similar functions,
regarding the effectiveness of the registrant's disclosure controls and
procedures (as defined in Rule 30a-3(c) under the Act (17 CFR 270.30a-3(c))) as
of a date within 90 days of the filing date of the report that includes the
disclosure required by this
paragraph, based on the evaluation of these controls and procedures required by
Rule 30a-3(b) under the Act (17 CFR 270.30a-3(b)) and Rules 13a-15(b) or
15d-15(b) under the Exchange Act (17 CFR 240.13a-15(b) or 240.15d-15(b)).
THE REGISTRANT'S PRINCIPAL EXECUTIVE OFFICER AND PRINCIPAL FINANCIAL OFFICER
HAVE CONCLUDED, BASED ON THEIR EVALUATION OF THE REGISTRANT'S DISCLOSURE
CONTROLS AND PROCEDURES AS CONDUCTED WITHIN 90 DAYS OF THE FILING DATE OF THIS
REPORT, THAT THESE DISCLOSURE CONTROLS AND PROCEDURES ARE ADEQUATELY DESIGNED
AND ARE OPERATING EFFECTIVELY TO ENSURE THAT INFORMATION REQUIRED TO BE
DISCLOSED BY THE REGISTRANT ON FORM N-CSR IS (i) ACCUMULATED AND COMMUNICATED TO
THE INVESTMENT COMPANY'S MANAGEMENT, INCLUDING ITS CERTIFYING OFFICERS, TO ALLOW
TIMELY DECISIONS REGARDING REQUIRED DISCLOSURE; AND (ii) RECORDED, PROCESSED,
SUMMARIZED AND REPORTED WITHIN THE TIME PERIODS SPECIFIED IN THE SECURITIES AND
EXCHANGE COMMISSION'S RULES AND FORMS.
(b) Disclose any change in the registrant's internal control over financial
reporting (as defined in Rule 30a-3(d) under the Act (17 CFR 270.30a-3(d)) that
occurred during the second fiscal quarter of the period covered by this report
that has materially affected, or is reasonably likely to materially affect, the
registrant's internal control over financial reporting.
THERE WERE NO CHANGES IN THE REGISTRANT'S INTERNAL CONTROL OVER FINANCIAL
REPORTING THAT OCCURRED DURING THE SECOND FISCAL QUARTER OF THE PERIOD COVERED
BY THIS REPORT THAT HAVE MATERIALLY AFFECTED OR ARE REASONABLY LIKELY TO
MATERIALLY AFFECT, THE REGISTRANT'S INTERNAL CONTROL OVER FINANCIAL REPORTING.
ITEM 11. EXHIBITS.
(a) File the exhibits listed below as part of this Form. Letter or
number the exhibits in the sequence indicated.
(a)(1) 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. THE CODE OF
ETHICS THAT IS THE SUBJECT OF THE DISCLOSURE REQUIRED BY ITEM 2 IS ATTACHED
HERETO.
(a)(2) A separate certification for each principal executive officer
and principal financial officer of the registrant as required by Rule 30a-2(a)
under the Act (17 CFR 270.30a-2). CERTIFICATIONS PURSUANT TO RULE 30a-2(a) ARE
ATTACHED HERETO.
(a)(3) Any written solicitation to purchase securities under Rule
23c-1 under the Act (17 CFR 270.23c-1) sent or given during the period covered
by the report by or on behalf of the registrant to 10 or more persons. NOT
APPLICABLE.
(b) If the report is filed under Section 13(a) or 15(d) of the
Exchange Act, provide the certifications required by rule 30a-2(b) under the Act
as an exhibit. A certification furnished pursuant to this paragraph will not be
deemed "filed" for purposes of Section 18 of the Exchange Act, or otherwise
subject to the liability of that section. Such certification will not be deemed
to be incorporated by reference into any filing under the Securities Act of 1933
or the Exchange Act, except to the extent that the registrant incorporates it by
reference. CERTIFICATIONS PURSUANT TO RULE 30a-2(b) ARE FURNISHED HEREWITH.
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 1/7/05
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 1/7/05
By (Signature and Title)* /s/ Edward E. Sammons, Jr. Edward E. Sammons, Jr.,
President
-------------------------- ------------------------
Date 1/10/05
* Print the name and title of each signing officer under his or her signature.