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 811-03541
Asset Management Fund
- --------------------------------------------------------------------------------
(Exact name of registrant as specified in charter)
230 West Monroe Street, Chicago, IL 60606
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(Address of principal executive offices) (Zip code)
Citi Fund Services, 3435 Stelzer Road, Columbus, OH 43219
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(Name and address of agent for service)
Registrant's telephone number, including area code: 800-527-3713
Date of fiscal year end: 10/31/08
Date of reporting period: 4/30/08
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.
[AMF LOGO]
ASSET MANAGEMENT FUND
230 West Monroe Street
Chicago, IL 60606
[AMF LOGO]
ASSET MANAGEMENT FUND
MANAGED BY:
SHAY ASSETS MANAGEMENT, INC.
SEMI-ANNUAL REPORT
APRIL 30, 2008
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ASSET MANAGEMENT FUND
MONEY MARKET FUND
STATEMENT OF NET ASSETS
APRIL 30, 2008 (UNAUDITED)
- --------------------------------------------------------------------------------
<Table>
<Caption>
PERCENTAGE
OF NET MATURITY PRINCIPAL
ASSETS DATE AMOUNT VALUE
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CERTIFICATES OF DEPOSIT...................... 5.2%
Bank of America, N.A., 2.89% 5/5/08 $ 10,000,000 $ 10,000,000
------------
TOTAL CERTIFICATES OF DEPOSIT 10,000,000
------------
GOVERNMENT BONDS............................. 20.9%
Federal Home Loan Bank(a)
2.05% 6/25/08 25,000,000 24,921,701
2.04% 6/27/08 15,000,000 14,951,550
------------
TOTAL GOVERNMENT BONDS 39,873,251
------------
REPURCHASE AGREEMENTS........................ 73.9%
Citigroup Repo, 2.00%, (Agreement dated
4/30/08 to be repurchased at
$141,317,851 on 5/1/08. Collateralized
by various Adjustable Rate U.S.
Government Mortgage-Backed Securities,
4.46%-5.89%, with a value of
$144,136,200, due 6/1/34-11/1/37) 141,310,000 141,310,000
------------
TOTAL REPURCHASE AGREEMENTS 141,310,000
------------
TOTAL INVESTMENTS
(Cost $191,183,251)........................ 100.0% 191,183,251
LIABILITIES IN EXCESS OF OTHER ASSETS........ 0.0% (12,513)
------------
Net Assets applicable to 191,182,689 Shares
of Common Stock issued and outstanding..... 100.0% $191,170,738
============
Net Asset Value, Class I offering and
redemption price per share ($129,704,113 /
129,715,633) $1.00
=====
Net Asset Value, Class D offering and
redemption price per share ($61,466,625 /
61,467,056) $1.00
=====
</Table>
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(a) Rate represents the effective yield at purchase.
See notes to financial statements.
1
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ASSET MANAGEMENT FUND
ULTRA SHORT MORTGAGE FUND
STATEMENT OF NET ASSETS
APRIL 30, 2008 (UNAUDITED)
- --------------------------------------------------------------------------------
<Table>
<Caption>
PERCENTAGE
OF NET MATURITY PRINCIPAL
ASSETS DATE AMOUNT VALUE
- --------------------------------------------------------------------------------------------------
ADJUSTABLE RATE MORTGAGE-RELATED
SECURITIES*.............................. 73.8%
1 Yr. Constant Maturity Treasury Based
ARMS.................................. 6.8%
Bear Stearns Adjustable Rate Mortgage
Trust
7.70% 3/25/31 $ 3,060,475 $ 3,091,080
CS First Boston Mortgage Securities
Corp.
7.78% 11/25/31 1,246,383 1,246,383
6.47% 6/25/32 794,109 797,206
Fannie Mae
6.69% 7/1/28 5,761,828 6,010,307
6.34% 8/1/29 4,033,548 4,189,848
6.14% 3/1/30 2,321,090 2,407,406
6.49% 1/1/32 7,863,375 8,182,825
6.02% 5/1/33 3,010,200 3,124,964
6.33% 9/1/33 6,783,985 7,072,305
5.67% 5/25/42 11,597,732 11,659,345
Fannie Mae Grantor Trust
5.58% 5/25/42 6,639,474 6,725,594
Fannie Mae Whole Loan
6.42% 8/25/42 6,056,807 6,135,370
Fifth Third Mortgage Loan Trust
5.56% 11/19/32 6,805,286 6,805,286
Freddie Mac
6.66% 10/1/22 2,375,496 2,446,018
7.23% 8/1/24 2,234,489 2,314,093
6.52% 9/1/27 2,808,172 2,914,356
6.60% 12/1/27 2,646,093 2,746,149
6.69% 12/1/27 2,718,604 2,823,950
6.55% 9/1/28 18,563,980 19,277,533
6.65% 9/1/30 1,952,784 2,026,623
6.63% 7/1/31 12,036,359 12,495,245
WAMU Mortgage Pass-Through
Certificates
5.48% 4/25/44 7,941,155 7,921,303
--------------
122,413,189
--------------
6 Mo. Certificate of Deposit Based ARMS.. 0.4%
Fannie Mae
5.81% 6/1/21 2,484,565 2,479,712
6.39% 12/1/24 4,010,426 4,054,597
</Table>
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See notes to financial statements.
2
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ASSET MANAGEMENT FUND
ULTRA SHORT MORTGAGE FUND (CONTINUED)
STATEMENT OF NET ASSETS
APRIL 30, 2008 (UNAUDITED)
- --------------------------------------------------------------------------------
<Table>
<Caption>
PERCENTAGE
OF NET MATURITY PRINCIPAL
ASSETS DATE AMOUNT VALUE
- --------------------------------------------------------------------------------------------------
Freddie Mac
6.82% 1/1/26 $ 1,326,141 $ 1,344,333
--------------
7,878,642
--------------
6 Mo. London Interbank Offering Rate
(LIBOR) Based ARMS.................... 5.5%
Bear Stearns Adjustable Rate Mortgage
Trust
7.56% 3/25/31 740,998 748,408
Fannie Mae
5.09% 9/1/27 6,048,740 6,114,495
4.87% 3/1/28 5,592,176 5,609,025
6.35% 6/1/28 1,156,884 1,178,040
6.30% 12/1/32 912,927 912,232
5.73% 9/1/33 2,421,605 2,445,448
5.98% 11/1/33 2,875,821 2,912,700
6.34% 11/1/33 4,076,761 4,078,548
Freddie Mac
7.04% 9/1/30 6,159,360 6,284,167
Mastr Adjustable Rate Mortgages Trust
6.67% 1/25/34 1,656,182 1,660,323
MLCC Mortgage Investors, Inc.
6.05% 10/25/28 11,619,275 11,742,730
Structured Asset Mortgage Investments,
Inc.
5.03% 7/19/32 4,247,632 4,295,418
6.39% 11/19/33 5,149,075 5,216,656
6.52% 12/19/33 10,451,195 10,572,037
Structured Asset Securities Corp.
6.40% 5/25/32 2,515,933 2,519,078
6.92% 11/25/32 3,757,514 3,790,392
6.94% 12/25/32 3,938,599 4,009,986
7.39% 2/25/33 2,845,729 2,891,083
6.93% 3/25/33 3,802,036 3,870,948
6.08% 5/25/33 10,843,712 11,077,530
7.40% 9/25/33 7,397,652 7,524,799
--------------
99,454,043
--------------
</Table>
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See notes to financial statements.
3
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ASSET MANAGEMENT FUND
ULTRA SHORT MORTGAGE FUND (CONTINUED)
STATEMENT OF NET ASSETS
APRIL 30, 2008 (UNAUDITED)
- --------------------------------------------------------------------------------
<Table>
<Caption>
PERCENTAGE
OF NET MATURITY PRINCIPAL
ASSETS DATE AMOUNT VALUE
- --------------------------------------------------------------------------------------------------
Cost of Funds Index Based ARMS........... 3.0%
Fannie Mae
5.22% 8/1/33 $ 18,023,958 $ 18,130,975
4.82% 11/1/36 20,484,489 20,606,116
4.81% 6/1/38 14,518,435 14,604,638
--------------
53,341,729
--------------
HYBRID ARMS.............................. 33.4%
Banc of America Funding Corp.
4.11% 5/25/35 15,101,320 14,601,363
4.62% 2/20/36 5,562,817 5,301,967
Banc of America Mortgage Securities
3.89 7/25/33 5,451,860 5,350,407
5.29% 4/25/35 18,421,326 17,795,473
5.25% 7/25/35 24,493,986 23,802,943
5.12% 10/25/35 67,620,562 65,454,666
Bear Stearns Adjustable Rate Mortgage
Trust
5.22% 8/25/35 13,604,540 13,261,509
Chase Mortgage Finance Corp.
5.41% 1/25/36 10,456,082 10,262,662
Countrywide Home Loans
4.16% 11/19/33 4,515,296 4,344,513
5.99% 5/20/36 4,561,264 4,340,280
First Horizon Alternative Mortgage
Securities
5.32% 6/25/35 9,435,095 9,240,347
First Horizon Mortgage Pass-Through
Trust
5.31% 12/25/34 3,349,367 3,261,279
5.31% 6/25/35 16,903,438 16,308,895
GMAC Mortgage Corporation Loan Trust
5.19% 11/19/35 21,712,990 21,275,917
GSR Mortgage Loan Trust
4.70% 5/25/34 36,888,000 36,138,123
4.60% 9/25/35 21,967,247 21,250,030
5.29% 10/25/35 15,802,093 15,065,428
JP Morgan Mortgage Trust
4.82% 7/25/35 10,393,275 9,934,915
5.21% 9/25/35 2,521,827 2,510,269
Mastr Adjustable Rate Mortgages Trust
7.28% 10/25/32 1,319,798 1,311,681
Merrill Lynch Mortgage Investors Trust
4.95% 2/25/34 7,216,356 7,091,893
</Table>
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See notes to financial statements.
4
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ASSET MANAGEMENT FUND
ULTRA SHORT MORTGAGE FUND (CONTINUED)
STATEMENT OF NET ASSETS
APRIL 30, 2008 (UNAUDITED)
- --------------------------------------------------------------------------------
<Table>
<Caption>
PERCENTAGE
OF NET MATURITY PRINCIPAL
ASSETS DATE AMOUNT VALUE
- --------------------------------------------------------------------------------------------------
Morgan Stanley Mortgage Loan Trust
4.81% 2/25/34 $ 7,864,245 $ 7,594,579
5.06% 9/25/34 4,267,810 4,178,205
5.47% 6/25/36 11,463,921 10,933,760
Provident Funding Mortgage Loan Trust
4.10% 4/25/34 3,889,222 3,822,226
Residential Accredit Loans, Inc.
5.51% 4/25/35 8,197,370 8,018,278
Structured Adjustable Rate Mortgage
Loan Trust
4.78% 5/25/34 11,017,627 10,605,113
6.09% 5/25/36 8,931,135 8,570,541
WAMU Mortgage Pass-Through
Certificates
4.40% 6/25/33 3,516,227 3,242,653
5.35% 1/25/37 107,783,786 105,249,470
Wells Fargo Mortgage Backed Securities
Trust
3.54% 9/25/34 9,469,785 9,140,268
4.56% 11/25/34 14,679,616 14,271,780
4.00% 12/25/34 18,865,511 18,428,434
5.04% 4/25/35 64,682,839 62,062,946
5.13% 3/25/36 19,921,114 19,107,805
5.63% 5/25/36 9,967,860 9,547,480
--------------
602,678,098
--------------
MONTHLY London Interbank Offering Rate
(LIBOR) Collateralized Mortgage
Obligations.............................. 24.7%
Adjustable Rate Mortgage Trust
3.09% 3/25/37 19,702,902 14,374,769
Banc of America Funding Corp.
3.09% 2/20/47 10,781,000 9,864,615
Fannie Mae
3.13% 9/18/31 4,849,777 4,771,586
Greenpoint Mortgage Funding Trust
3.21% 10/25/45 13,749,389 13,663,455
GSR Mortgage Loan Trust
3.25% 3/25/32 2,487,797 2,419,155
Indymac INDX Mortgage Loan Trust
3.20% 2/25/37 11,797,000 7,078,200
3.22% 2/25/37 4,857,000 2,525,640
3.25% 2/25/37 3,470,000 1,804,400
</Table>
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See notes to financial statements.
5
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ASSET MANAGEMENT FUND
ULTRA SHORT MORTGAGE FUND (CONTINUED)
STATEMENT OF NET ASSETS
APRIL 30, 2008 (UNAUDITED)
- --------------------------------------------------------------------------------
<Table>
<Caption>
PERCENTAGE
OF NET MATURITY PRINCIPAL
ASSETS DATE AMOUNT VALUE
- --------------------------------------------------------------------------------------------------
JP Morgan Alternative Loan Trust
3.12% 11/25/36 $ 7,060,912 $ 6,354,820
3.21% 11/25/36 15,968,000 8,333,220
Lehman XS Trust
3.06% 3/25/37 93,036,090 87,192,261
Merrill Lynch Mortgage Investors Trust
3.09% 7/25/36 8,374,712 8,319,753
Morgan Stanley Mortgage Loan Trust
3.13% 8/25/36 24,893,211 17,425,248
3.13% 9/25/36 9,635,942 8,768,707
3.13% 10/25/36 11,391,843 9,113,475
3.15% 11/25/36 17,768,392 16,169,237
Nomura Asset Acceptance Corp.
3.25% 12/25/35 6,438,116 4,263,477
Residential Accredit Loans, Inc.
3.12% 7/25/36 20,646,573 18,788,382
Structured Adjustable Rate Mortgage
Loan Trust
3.11% 2/25/37 12,806,270 11,397,580
Thornburg Mortgage Securities Trust
3.03% 7/25/36 68,958,515 68,031,885
3.08% 9/25/46 52,061,512 51,410,743
Wells Fargo Mortgage Backed Securities
Trust
3.40% 6/25/37 38,144,430 37,858,347
3.40% 6/25/37 34,577,091 34,317,763
--------------
444,246,718
--------------
TOTAL ADJUSTABLE RATE MORTGAGE-RELATED
SECURITIES 1,330,012,419
--------------
FIXED RATE MORTGAGE- RELATED SECURITIES.... 21.0%
Collateralized Mortgage Obligations...... 21.0%
Countrywide Home Loans
6.00% 2/25/37 25,729,283 25,174,495
Fannie Mae
4.35% 3/25/34 30,534,256 30,650,364
4.50% 3/25/35 19,322,009 19,245,787
4.35% 9/25/36 53,913,758 52,740,332
4.25% 2/25/37 61,743,107 59,588,641
4.25% 4/25/37 43,141,239 41,844,256
4.25% 5/25/37 58,157,374 58,002,238
</Table>
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See notes to financial statements.
6
- --------------------------------------------------------------------------------
ASSET MANAGEMENT FUND
ULTRA SHORT MORTGAGE FUND (CONTINUED)
STATEMENT OF NET ASSETS
APRIL 30, 2008 (UNAUDITED)
- --------------------------------------------------------------------------------
<Table>
<Caption>
PERCENTAGE
OF NET MATURITY PRINCIPAL
ASSETS DATE AMOUNT VALUE
- --------------------------------------------------------------------------------------------------
Freddie Mac
4.25% 12/15/36 $ 58,075,265 $ 57,939,012
Prime Mortgage Trust
5.25% 1/25/34 9,129,664 8,862,779
Residential Accredit Loans, Inc.
6.00% 12/25/35 13,994,346 12,587,128
Residential Asset Securitization Trust
5.50% 9/25/35 12,016,136 12,015,176
--------------
TOTAL FIXED RATE MORTGAGE-RELATED
SECURITIES 378,650,208
--------------
REPURCHASE AGREEMENTS...................... 5.1%
Citigroup Repo, 2.00%, (Agreement dated
4/30/08 to be repurchased at
$90,599,033 on 5/1/08. Collateralized
by various Adjustable Rate U.S.
Government Mortgage-Backed Securities,
3.98%-5.75%, with a value of
$92,405,880, due 10/1/23-10/1/36) 90,594,000 90,594,000
--------------
TOTAL REPURCHASE AGREEMENTS 90,594,000
--------------
TOTAL INVESTMENTS
(Cost $1,856,818,865).................... 99.9% 1,799,256,627
OTHER ASSETS IN EXCESS OF LIABILITIES...... 0.1% 2,340,376
--------------
Net Assets applicable to 192,590,169 Shares
of Common Stock issued and outstanding... 100.0% $1,801,597,003
==============
Net Asset Value, offering and redemption
price per share ($1,801,597,003 /
192,590,169) $9.35
=====
</Table>
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* The rates presented are the rates in effect at April 30, 2008.
See notes to financial statements.
7
- --------------------------------------------------------------------------------
ASSET MANAGEMENT FUND
ULTRA SHORT FUND
STATEMENT OF NET ASSETS
APRIL 30, 2008 (UNAUDITED)
- --------------------------------------------------------------------------------
<Table>
<Caption>
PERCENTAGE
OF NET MATURITY PRINCIPAL
ASSETS DATE AMOUNT VALUE
- -------------------------------------------------------------------------------------------------
ADJUSTABLE RATE MORTGAGE-RELATED
SECURITIES*................................ 85.3%
1 Yr. Constant Maturity Treasury Based
ARMS.................................... 21.6%
Fannie Mae
6.64% 10/1/28 $ 940,536 $ 979,921
6.70% 12/1/30 2,286,377 2,391,407
6.49% 1/1/32 7,802,776 8,119,764
6.51% 7/1/33 3,305,968 3,440,273
6.38% 12/1/33 1,490,643 1,550,269
Freddie Mac
6.59% 11/1/28 758,813 787,980
7.04% 1/1/29 2,827,917 2,952,523
6.51% 7/1/30 2,854,162 2,968,329
6.42% 9/1/30 408,615 422,023
6.83% 8/1/31 5,594,082 5,837,075
Fund America Investors Corp. II
6.46% 6/25/23 2,059,998 2,054,848
WAMU Mortgage Pass-Through Certificates
5.48% 4/25/44 1,221,717 1,218,662
------------
32,723,074
------------
6 Mo. London Interbank Offering Rate
(LIBOR) Based ARMS...................... 2.0%
Structured Adjustable Rate Mortgage Loan
Trust
6.51% 8/25/34 1,772,047 1,791,982
Structured Asset Securities Corp.
6.92% 11/25/32 598,961 604,201
6.92% 11/25/32 598,961 604,202
------------
3,000,385
------------
Cost of Funds Index Based ARMS............. 0.7%
Regal Trust IV
5.47% 9/29/31 642,488 640,205
Ryland Mortgage Securities Corp.
6.12% 10/25/23 377,318 377,318
------------
1,017,523
------------
</Table>
- --------------------------------------------------------------------------------
See notes to financial statements.
8
- --------------------------------------------------------------------------------
ASSET MANAGEMENT FUND
ULTRA SHORT FUND (CONTINUED)
STATEMENT OF NET ASSETS
APRIL 30, 2008 (UNAUDITED)
- --------------------------------------------------------------------------------
<Table>
<Caption>
PERCENTAGE
OF NET MATURITY PRINCIPAL
ASSETS DATE AMOUNT VALUE
- -------------------------------------------------------------------------------------------------
HYBRID ARMS................................ 47.2%
Adjustable Rate Mortgage Trust
4.90% 10/25/35 $ 2,075,000 $ 2,014,837
5.07% 3/25/36 1,526,865 1,517,269
Banc of America Funding Corp.
5.06% 5/20/35 5,886,846 5,735,428
4.62% 2/20/36 1,917,973 1,818,884
Banc of America Mortgage Securities
6.34% 1/20/38 4,704,010 4,422,170
Bear Stearns Adjustable Rate Mortgage
Trust
4.85% 10/25/35 5,726,790 5,489,948
GSR Mortgage Loan Trust
5.22% 1/25/36 4,972,493 4,740,522
Indymac INDX Mortgage Loan Trust
5.09% 11/25/35 7,150,153 6,916,007
5.99% 9/25/36 5,388,676 5,332,666
Morgan Stanley Mortgage Loan Trust
5.47% 6/25/36 3,959,973 3,776,837
Mortgageit Trust
4.75% 5/25/35 1,429,002 1,385,310
4.75% 5/25/35 892,346 862,161
Sequoia Mortgage Trust
4.08% 4/20/35 1,740,000 1,698,171
Structured Adjustable Rate Mortgage Loan
Trust
5.67% 4/25/35 3,977,479 3,907,650
5.75% 10/25/35 6,364,092 6,134,400
WAMU Mortgage Pass-Through Certificates
6.55% 2/25/33 445,354 443,124
5.35% 1/25/37 6,293,944 6,145,954
Wells Fargo Mortgage Backed Securities
Trust
4.37% 5/25/35 1,941,832 1,900,189
4.11% 6/25/35 7,480,914 7,238,569
------------
71,480,096
------------
MONTHLY London Interbank Offering Rate
(LIBOR) Collateralized Mortgage
Obligations Adjustable Rate Mortgage
Trust................................... 13.8%
3.17% 11/25/35 3,469,182 3,445,332
Bear Stearns Alt-A Trust
3.12% 8/25/36 6,538,075 6,080,409
</Table>
- --------------------------------------------------------------------------------
See notes to financial statements.
9
- --------------------------------------------------------------------------------
ASSET MANAGEMENT FUND
ULTRA SHORT FUND (CONTINUED)
STATEMENT OF NET ASSETS
APRIL 30, 2008 (UNAUDITED)
- --------------------------------------------------------------------------------
<Table>
<Caption>
PERCENTAGE
OF NET MATURITY PRINCIPAL
ASSETS DATE AMOUNT VALUE
- -------------------------------------------------------------------------------------------------
Morgan Stanley Mortgage Loan Trust
2.99% 6/25/36 $ 3,101,531 $ 2,975,329
Sequoia Mortgage Trust
3.11% 9/20/33 2,449,070 2,400,088
Structured Asset Mortgage Investments,
Inc.
4.00% 2/19/35 1,889,757 1,880,309
Structured Asset Securities Corp.
4.15% 3/25/33 907,089 907,089
4.25% 5/25/33 1,567,725 1,567,725
4.10% 11/25/33 1,566,277 1,566,277
------------
20,822,558
------------
TOTAL ADJUSTABLE RATE MORTGAGE-RELATED
SECURITIES 129,043,636
------------
FIXED RATE MORTGAGE-RELATED SECURITIES....... 12.2%
Collateralized Mortgage Obligations........ 12.2%
Fannie Mae
4.25% 4/25/37 8,181,846 7,935,870
Morgan Stanley Mortgage Loan Trust
6.00% 8/25/37 10,620,000 10,610,044
------------
TOTAL FIXED RATE MORTGAGE-RELATED SECURITIES 18,545,914
------------
REPURCHASE AGREEMENTS........................ 2.2%
Citigroup Repo, 2.00%, (Agreement dated
4/30/08 to be repurchased at $3,372,187
on 5/1/08. collateralized by an
Adjustable Rate U.S. Government
Mortgage-Backed Security, 5.51%, with a
value of $3,439,441, due 2/1/37) 3,372,000 3,372,000
------------
TOTAL REPURCHASE AGREEMENTS 3,372,000
------------
TOTAL INVESTMENTS
(Cost $152,150,732)........................ 99.7% 150,961,550
OTHER ASSETS IN EXCESS OF LIABILITIES........ 0.3% 397,354
------------
Net Assets applicable to 16,119,880 Shares of
Common Stock issued and outstanding........ 100.0% $151,358,904
============
Net Asset Value, offering and redemption
price per share ($151,358,904 /16,119,880) $9.39
=====
</Table>
- --------------------------------------------------------------------------------
* The rates presented are the rates in effect at April 30, 2008.
See notes to financial statements.
10
- --------------------------------------------------------------------------------
ASSET MANAGEMENT FUND
SHORT U.S. GOVERNMENT FUND
STATEMENT OF NET ASSETS
APRIL 30, 2008 (UNAUDITED)
- --------------------------------------------------------------------------------
<Table>
<Caption>
PERCENTAGE
OF NET MATURITY PRINCIPAL
ASSETS DATE AMOUNT VALUE
- ---------------------------------------------------------------------------------------------------
ADJUSTABLE RATE MORTGAGE-RELATED SECURITIES*... 32.0%
1 Yr. Constant Maturity Treasury Based ARMS.. 17.9%
Fannie Mae
6.12% 5/1/26 $ 2,205,061 $ 2,291,885
6.97% 5/1/31 2,311,816 2,412,235
6.49% 1/1/32 8,669,751 9,021,960
Freddie Mac
6.73% 5/1/18 468,669 484,926
6.71% 3/1/27 1,240,532 1,288,603
6.83% 8/1/31 6,441,508 6,721,311
------------
22,220,920
------------
HYBRID ARMS.................................. 14.1%
Adjustable Rate Mortgage Trust
5.12% 10/25/35 1,735,250 1,726,994
Banc of America Funding Corp.
5.06% 5/20/35 3,924,564 3,823,619
Bear Stearns Adjustable Rate Mortgage
Trust
4.85% 10/25/35 2,598,486 2,512,473
Indymac INDX Mortgage Loan Trust
5.52% 7/25/35 4,168,163 4,074,674
5.43% 9/25/35 1,542,185 1,535,464
WAMU Mortgage Pass-Through Certificates
5.35% 1/25/37 3,933,715 3,841,221
------------
17,514,445
------------
TOTAL ADJUSTABLE RATE MORTGAGE-RELATED
SECURITIES 39,735,365
------------
</Table>
- --------------------------------------------------------------------------------
See notes to financial statements.
11
- --------------------------------------------------------------------------------
ASSET MANAGEMENT FUND
SHORT U.S. GOVERNMENT FUND (CONTINUED)
STATEMENT OF NET ASSETS
APRIL 30, 2008 (UNAUDITED)
- --------------------------------------------------------------------------------
<Table>
<Caption>
PERCENTAGE
OF NET MATURITY PRINCIPAL
ASSETS DATE AMOUNT VALUE
- ---------------------------------------------------------------------------------------------------
FIXED RATE MORTGAGE-RELATED SECURITIES......... 37.1%
15 Yr. Securities............................ 0.1%
Freddie Mac
8.00% 12/17/15 $ 171,105 $ 173,159
------------
Collateralized Mortgage Obligations.......... 37.0%
Fannie Mae
4.35% 3/25/34 3,966,573 3,981,656
4.35% 9/25/36 11,552,948 11,301,500
4.25% 4/25/37 4,090,923 3,967,935
Freddie Mac
4.50% 4/15/19 7,000,000 6,750,625
4.50% 6/15/19 10,000,000 9,750,000
4.50% 3/15/22 6,496,000 6,234,130
4.25% 12/15/36 3,912,426 3,903,246
------------
45,889,092
------------
TOTAL FIXED RATE MORTGAGE-RELATED SECURITIES 46,062,251
------------
U.S. TREASURY OBLIGATIONS...................... 12.5%
U.S. Treasury Notes
4.88% 5/15/09 3,000,000 3,089,472
4.50% 5/15/10 2,000,000 2,090,938
2.88% 1/31/13 5,000,000 4,969,336
4.75% 5/15/14 3,000,000 3,262,266
4.25% 11/15/14 2,000,000 2,115,469
------------
TOTAL U.S. TREASURY OBLIGATIONS 15,527,481
------------
REPURCHASE AGREEMENTS.......................... 17.8%
Citigroup Repo, 2.00%, (Agreement dated
4/30/08 to be repurchased at $22,052,225
on 5/1/08. Collateralized by Adjustable
Rate U.S. Government Mortgage-Backed
Security, 5.18%, with a value of
$22,492,021, due 10/1/37) 22,051,000 22,051,000
------------
TOTAL REPURCHASE AGREEMENTS 22,051,000
------------
TOTAL INVESTMENTS
(Cost $123,552,481).......................... 99.4% 123,376,097
OTHER ASSETS IN EXCESS OF LIABILITIES.......... 0.6% 713,755
------------
Net Assets applicable to 12,019,138 Shares of
Common Stock issued and outstanding.......... 100.0% $124,089,852
============
Net Asset Value, offering and redemption price
per share ($124,089,852 /12,019,138) $10.32
======
</Table>
- --------------------------------------------------------------------------------
* The rates presented are the rates in effect at April 30, 2008.
See notes to financial statements.
12
- --------------------------------------------------------------------------------
ASSET MANAGEMENT FUND
INTERMEDIATE MORTGAGE FUND
STATEMENT OF NET ASSETS
APRIL 30, 2008 (UNAUDITED)
- --------------------------------------------------------------------------------
<Table>
<Caption>
PERCENTAGE
OF NET MATURITY PRINCIPAL
ASSETS DATE AMOUNT VALUE
- -------------------------------------------------------------------------------------------------
ADJUSTABLE RATE MORTGAGE-RELATED
SECURITIES*................................ 52.7%
1 Yr. Constant Maturity Treasury Based
ARMS.................................... 3.7%
Countrywide Home Loans
6.75% 1/20/35 $ 2,719,583 $ 2,702,585
Lehman XS Trust
4.79% 11/25/35 4,607,010 3,623,704
------------
6,326,289
------------
HYBRID ARMS................................ 43.8%
Adjustable Rate Mortgage Trust
5.27% 10/25/35 8,457,400 8,119,721
Banc of America Mortgage Securities
6.67% 3/25/33 651,538 630,288
5.86% 4/25/33 61,488 60,535
Bear Stearns Adjustable Rate Mortgage
Trust
4.85% 10/25/35 11,673,243 11,286,844
Countrywide Alternative Loan Trust
5.16% 12/25/34 6,357,553 6,200,555
Countrywide Home Loans
4.93% 12/25/33 3,142,061 3,040,599
5.38% 11/25/35 6,793,947 6,300,405
CS First Boston Mortgage Securities
Corp.
5.26% 6/25/33 494,206 488,475
First Horizon Alternative Mortgage
Securities
5.45% 7/25/35 10,619,628 10,406,725
GSR Mortgage Loan Trust
5.22% 1/25/36 4,723,868 4,503,496
JP Morgan Mortgage Trust
4.96% 8/25/35 3,810,194 3,660,559
Structured Adjustable Rate Mortgage Loan
Trust
4.48% 4/25/34 7,160,085 7,024,053
5.54% 6/25/36 9,486,440 9,271,380
Wells Fargo Mortgage Backed Securities
Trust
6.14% 12/25/36 4,198,584 3,953,838
------------
74,947,473
------------
MONTHLY London Interbank Offering Rate
(LIBOR)
Collateralized Mortgage Obligations........ 5.2%
Banc of America Funding Corp.
3.11% 2/20/47 4,121,234 2,720,015
3.14% 2/20/47 3,434,999 2,060,999
</Table>
- --------------------------------------------------------------------------------
See notes to financial statements.
13
- --------------------------------------------------------------------------------
ASSET MANAGEMENT FUND
INTERMEDIATE MORTGAGE FUND (CONTINUED)
STATEMENT OF NET ASSETS
APRIL 30, 2008 (UNAUDITED)
- --------------------------------------------------------------------------------
<Table>
<Caption>
PERCENTAGE
OF NET MATURITY PRINCIPAL
ASSETS DATE AMOUNT VALUE
- -------------------------------------------------------------------------------------------------
Impac CMB Trust
3.92% 6/25/33 $ 2,247,862 $ 1,532,575
Merrill Lynch Alternative Note Asset
3.20% 1/25/37 3,103,829 310,383
Structured Adjustable Rate Mortgage Loan
Trust
3.19% 2/25/37 2,308,159 807,856
3.22% 2/25/37 2,967,633 741,908
3.26% 2/25/37 3,297,370 741,908
------------
8,915,644
------------
TOTAL ADJUSTABLE RATE MORTGAGE-RELATED
SECURITIES 90,189,406
------------
FIXED RATE MORTGAGE-RELATED SECURITIES....... 41.5%
15 Yr. Securities.......................... 4.0%
Fannie Mae
7.00% 3/1/15 609,890 635,750
7.00% 3/1/15 335,416 349,319
7.00% 3/1/15 318,742 331,634
7.50% 11/1/15 455,009 480,280
6.50% 1/1/16 458,072 476,878
6.00% 6/1/16 1,189,346 1,226,745
6.00% 7/1/17 1,246,135 1,285,320
6.00% 7/1/17 640,662 660,808
Freddie Mac
7.50% 1/1/10 127,622 129,822
6.00% 6/1/17 1,294,971 1,335,894
------------
6,912,450
------------
30 Yr. Securities.......................... 11.6%
Fannie Mae
5.50% 2/1/38 8,357,843 8,409,427
5.00% 3/1/38 9,539,253 9,382,004
5.00% 3/1/38 2,023,797 1,990,435
------------
19,781,866
------------
Collateralized Mortgage Obligations........ 25.9%
Countrywide Alternative Loan Trust
5.50% 12/25/35 6,825,674 6,048,445
Credit Suisse Mortgage Capital
Certificates
6.00% 2/25/37 5,586,413 5,114,728
6.00% 2/25/37 1,046,557 958,192
</Table>
- --------------------------------------------------------------------------------
See notes to financial statements.
14
- --------------------------------------------------------------------------------
ASSET MANAGEMENT FUND
INTERMEDIATE MORTGAGE FUND (CONTINUED)
STATEMENT OF NET ASSETS
APRIL 30, 2008 (UNAUDITED)
- --------------------------------------------------------------------------------
<Table>
<Caption>
PERCENTAGE
OF NET MATURITY PRINCIPAL
ASSETS DATE AMOUNT VALUE
- -------------------------------------------------------------------------------------------------
Fannie Mae
4.00% 10/25/32 $ 5,116,863 $ 5,051,229
5.00% 9/25/35 2,721,627 2,719,102
4.25% 4/25/37 3,909,938 3,792,391
First Horizon Alternative Mortgage
Securities 6.00% 7/25/36 4,101,487 3,790,795
6.00% 7/25/36 3,217,410 2,427,100
Freddie Mac
5.00% 2/15/30 8,537,798 8,475,299
Residential Funding Mortgage Securities
I
6.00% 1/25/37 6,594,739 6,016,392
------------
44,393,673
------------
TOTAL FIXED RATE MORTGAGE-RELATED SECURITIES 71,087,989
------------
U.S. TREASURY OBLIGATIONS.................... 1.7%
U.S. Treasury Notes
3.88% 2/15/13 1,434,000 1,490,128
4.25% 11/15/17 1,434,000 1,488,727
------------
TOTAL U.S. TREASURY OBLIGATIONS 2,978,855
------------
REPURCHASE AGREEMENTS........................ 4.1%
Citigroup Repo, 2.00%, (Agreement dated
4/30/08 to be repurchased at $70 on
5/1/08. Collateralized by an Adjustable
Rate U.S. Government Mortgage-Backed
Security, 5.25%, with a value of
$7,138,980, due 1/1/36) 6,999,000 6,999,000
------------
TOTAL REPURCHASE AGREEMENTS 6,999,000
------------
TOTAL INVESTMENTS
(Cost $188,872,606)........................ 100.0% 171,255,250
OTHER ASSETS IN EXCESS OF LIABILITIES........ 0.0% 53,067
------------
Net Assets applicable to 20,425,023 Shares of
Common Stock issued and outstanding........ 100.0% $171,308,317
============
Net Asset Value, offering and redemption
price per share ($171,308,317 / 20,425,023) $8.39
=====
</Table>
- --------------------------------------------------------------------------------
* The rates presented are the rates in effect at April 30, 2008.
See notes to financial statements.
15
- --------------------------------------------------------------------------------
ASSET MANAGEMENT FUND
U.S. GOVERNMENT MORTGAGE FUND
STATEMENT OF NET ASSETS
APRIL 30, 2008 (UNAUDITED)
- --------------------------------------------------------------------------------
<Table>
<Caption>
PERCENTAGE
OF NET MATURITY PRINCIPAL
ASSETS DATE AMOUNT VALUE
- -------------------------------------------------------------------------------------------------
ADJUSTABLE RATE MORTGAGE-RELATED
SECURITIES*................................. 31.0%
HYBRID ARMS................................. 20.2%
GSR Mortgage Loan Trust
5.22% 1/25/36 $ 4,972,493 $ 4,740,522
5.68% 4/25/36 4,021,106 3,816,762
Indymac INDX Mortgage Loan Trust
5.19% 11/25/35 3,723,751 3,477,429
5.74% 3/25/37 4,370,090 4,254,993
Wells Fargo Mortgage Backed Securities
Trust
5.12% 9/25/35 1,056,000 986,638
-----------
17,276,344
-----------
MONTHLY London Interbank Offering Rate (LIBOR)
Collateralized Mortgage Obligations......... 10.8%
Fannie Mae
3.31% 2/25/37 9,580,513 9,248,670
-----------
TOTAL ADJUSTABLE RATE MORTGAGE-RELATED
SECURITIES 26,525,014
-----------
FIXED RATE MORTGAGE-RELATED SECURITIES........ 66.6%
15 Yr. Securities........................... 0.7%
Fannie Mae
7.00% 3/1/15 559,097 581,710
-----------
30 Yr. Securities........................... 19.8%
Fannie Mae
5.50% 7/1/37 10,412,844 10,480,365
5.00% 3/1/38 4,971,914 4,889,955
Government National Mortgage Association
7.50% 2/15/24 332,640 355,223
7.00% 4/15/27 299,142 317,605
6.00% 1/15/29 808,647 838,574
-----------
16,881,722
-----------
</Table>
- --------------------------------------------------------------------------------
See notes to financial statements.
16
- --------------------------------------------------------------------------------
ASSET MANAGEMENT FUND
U.S. GOVERNMENT MORTGAGE FUND (CONTINUED)
STATEMENT OF NET ASSETS
APRIL 30, 2008 (UNAUDITED)
- --------------------------------------------------------------------------------
<Table>
<Caption>
PERCENTAGE
OF NET MATURITY PRINCIPAL
ASSETS DATE AMOUNT VALUE
- -------------------------------------------------------------------------------------------------
Collateralized Mortgage Obligations......... 46.1%
Fannie Mae
5.00% 9/25/32 $13,929,000 $13,814,898
4.00% 1/25/33 778,292 769,436
5.50% 12/25/36 8,573,000 8,179,022
4.25% 4/25/37 4,090,923 3,967,935
Freddie Mac
4.50% 4/15/19 8,000,000 7,715,000
4.00% 3/15/33 1,041,641 1,021,206
4.25% 12/15/36 3,912,426 3,903,246
-----------
39,370,743
-----------
TOTAL FIXED RATE MORTGAGE-RELATED SECURITIES 56,834,175
-----------
REPURCHASE AGREEMENTS......................... 2.3%
Citigroup Repo, 2.00%, (Agreement dated
4/30/08 to be repurchased at $1,981,110
on 5/1/08. Collateralized by an
Adjustable Rate U.S. Government
Mortgage-Backed Security, 5.50%, with a
value of $2,020,620, due 10/20/36) 1,981,000 1,981,000
-----------
TOTAL REPURCHASE AGREEMENTS 1,981,000
-----------
TOTAL INVESTMENTS
(Cost $86,250,098).......................... 99.9% 85,340,189
OTHER ASSETS IN EXCESS OF LIABILITIES......... 0.1% 84,291
-----------
Net Assets applicable to 8,475,836 Shares of
Common Stock issued and outstanding......... 100.0% $85,424,480
===========
Net Asset Value, offering and redemption price
per share ($85,424,480 / 8,475,836) $10.08
======
</Table>
- --------------------------------------------------------------------------------
* The rates presented are the rates in effect at April 30, 2008.
See notes to financial statements.
17
- --------------------------------------------------------------------------------
ASSET MANAGEMENT FUND
LARGE CAP EQUITY FUND
STATEMENT OF NET ASSETS
APRIL 30, 2008 (UNAUDITED)
- --------------------------------------------------------------------------------
<Table>
<Caption>
PERCENTAGE
OF NET
ASSETS SHARES VALUE
- ---------------------------------------------------------------------------------------------------
COMMON STOCKS.................................. 94.9%
Advertising.................................. 3.0%
Omnicom Group, Inc. 32,000 $ 1,527,680
-----------
Automotive................................... 2.3%
Harley-Davidson, Inc. 30,000 1,147,500
-----------
Banks........................................ 3.5%
Wells Fargo & Co. 60,000 1,785,000
-----------
Beverages Non-Alcoholic...................... 8.9%
PepsiCo, Inc. 32,000 2,192,960
Coca-Cola Co. 39,000 2,295,930
-----------
4,488,890
-----------
Building Products............................ 3.1%
Home Depot, Inc. 55,000 1,584,000
-----------
Business Services............................ 3.9%
Automatic Data Processing, Inc. 45,000 1,989,000
-----------
Computer Hardware............................ 5.5%
Cisco Systems, Inc.(a) 68,000 1,743,520
Dell, Inc.(a) 55,000 1,024,650
-----------
2,768,170
-----------
Computer Software & Services................. 8.0%
International Business Machines Corp. 17,000 2,051,900
Microsoft Corp. 70,000 1,996,400
-----------
4,048,300
-----------
Consumer Non-Durable......................... 4.7%
Procter & Gamble Co. 35,000 2,346,750
-----------
Distributor-Consumer Products................ 3.0%
Sysco Corp. 50,000 1,528,500
-----------
Diversified Manufacturing.................... 11.3%
3M Co. 23,000 1,768,700
General Electric Co. 72,000 2,354,400
Illinois Tool Works, Inc. 30,000 1,568,700
-----------
5,691,800
-----------
</Table>
- --------------------------------------------------------------------------------
See notes to financial statements.
18
- --------------------------------------------------------------------------------
ASSET MANAGEMENT FUND
LARGE CAP EQUITY FUND (CONTINUED)
STATEMENT OF NET ASSETS
APRIL 30, 2008 (UNAUDITED)
- --------------------------------------------------------------------------------
<Table>
<Caption>
PERCENTAGE
OF NET
ASSETS SHARES VALUE
- ---------------------------------------------------------------------------------------------------
Financial Services........................... 2.9%
American Express Co. 30,000 $ 1,440,600
-----------
Health Care.................................. 10.1%
Abbott Laboratories 23,000 1,213,250
Johnson & Johnson 38,000 2,549,420
UnitedHealth Group, Inc. 40,000 1,305,200
-----------
5,067,870
-----------
Insurance.................................... 8.0%
American International Group, Inc. 35,000 1,617,000
Berkshire Hathaway, Inc.(a) 18 2,409,300
-----------
4,026,300
-----------
Medical Instruments.......................... 3.4%
Medtronic, Inc. 35,000 1,703,800
-----------
Oil & Gas.................................... 2.8%
Exxon Mobil Corp. 15,000 1,396,050
-----------
Retail....................................... 8.0%
Staples, Inc. 70,000 1,519,000
Wal-Mart Stores, Inc. 43,000 2,493,140
-----------
4,012,140
-----------
Transportation & Shipping.................... 2.5%
FedEx Corp. 13,000 1,246,310
-----------
TOTAL COMMON STOCKS 47,798,660
-----------
CASH EQUIVALENTS............................... 4.9%
Money Market Mutual Funds.................... 4.9%
Vanguard Admiral Treasury Money Market
Fund 266,377 266,377
Vanguard Federal Money Market Fund 2,180,903 2,180,903
-----------
TOTAL CASH EQUIVALENTS 2,447,280
-----------
TOTAL INVESTMENTS
(Cost $40,200,302)........................... 99.8% 50,245,940
OTHER ASSETS IN EXCESS OF LIABILITIES.......... 0.2% 123,299
-----------
Net Assets applicable to 5,828,685 Shares of
Common
Stock issued and outstanding................. 100.0% $50,369,239
===========
Net Asset Value, offering and redemption price
per share ($50,369,239 / 5,828,685) $8.64
=====
</Table>
- --------------------------------------------------------------------------------
(a) Non-income producing security.
See notes to financial statements.
19
- --------------------------------------------------------------------------------
ASSET MANAGEMENT FUND
STATEMENTS OF OPERATIONS
FOR THE SIX MONTHS ENDED APRIL 30, 2008 (UNAUDITED)
- --------------------------------------------------------------------------------
<Table>
<Caption>
ULTRA SHORT U.S. LARGE
MONEY SHORT ULTRA U.S. INTERMEDIATE GOVERNMENT CAP
MARKET MORTGAGE SHORT GOVERNMENT MORTGAGE MORTGAGE EQUITY
FUND FUND FUND FUND FUND FUND FUND
- ----------------------------------------------------------------------------------------------------------------------------------
INVESTMENT INCOME:
Interest income.................... $4,218,270 $ 52,795,103 $ 5,010,247 $3,288,991 $ 5,524,225 $3,148,526 $ --
Dividend income.................... -- -- -- -- -- -- 515,932
---------- ------------ ----------- ---------- ------------ ---------- -----------
Total investment income.......... 4,218,270 52,795,103 5,010,247 3,288,991 5,524,225 3,148,526 515,932
---------- ------------ ----------- ---------- ------------ ---------- -----------
Operating expenses:
Investment advisory.............. 176,242 4,467,266 397,836 163,454 340,556 145,432 168,361
Distribution -- Class I Shares... 122,697 2,481,808 221,020 98,073 145,954 87,260 64,754
Distribution -- Class D Shares... 214,178 -- -- -- -- -- --
Fund accounting.................. -- 3,185 1,456 1,063 2,548 1,942 765
Administration................... 35,249 247,156 26,523 19,615 29,191 17,452 7,771
Custodian........................ 17,238 93,471 14,214 11,732 18,512 13,680 3,702
Transfer agent................... 13,146 28,641 3,425 2,333 1,605 1,272 1,307
Chief Compliance Officer......... 4,062 45,773 4,186 2,912 5,096 3,145 4,095
Trustees......................... 6,184 50,735 4,672 3,261 5,251 3,092 --
Other............................ 18,253 211,150 27,090 6,989 25,690 23,301 10,283
---------- ------------ ----------- ---------- ------------ ---------- -----------
Total expenses before fee
reductions.................... 607,249 7,629,185 700,422 309,432 574,403 296,576 261,038
---------- ------------ ----------- ---------- ------------ ---------- -----------
Expenses reduced by Investment
Adviser....................... (156,397) (1,985,458) (176,817) -- (97,301) -- --
Expenses reduced by Distributor.. (99,644) (992,711) (88,407) -- -- -- (25,901)
---------- ------------ ----------- ---------- ------------ ---------- -----------
Net expenses.................. 351,208 4,651,016 435,198 309,432 477,102 296,576 235,137
---------- ------------ ----------- ---------- ------------ ---------- -----------
Net investment income......... 3,867,062 48,144,087 4,575,049 2,979,559 5,047,123 2,851,950 280,795
---------- ------------ ----------- ---------- ------------ ---------- -----------
REALIZED AND UNREALIZED
GAINS/(LOSSES) FROM INVESTMENT
ACTIVITIES:
Realized gains/(losses) from
investment transactions.......... -- (4,307,452) (3,236,596) (241,192) (2,379,937) 761,566 2,447,944
Realized gains/(losses) from
redemptions in-kind.............. -- -- -- -- (587,496) -- --
Change in unrealized
appreciation/depreciation on
investments...................... -- (48,800,646) (582,656) 73,850 (12,942,818) (955,049) (7,044,739)
---------- ------------ ----------- ---------- ------------ ---------- -----------
Net realized/unrealized
gains/(losses) from investment
activities....................... -- (53,108,098) (3,819,252) (167,342) (15,910,251) (193,483) (4,596,795)
---------- ------------ ----------- ---------- ------------ ---------- -----------
CHANGE IN NET ASSETS RESULTING FROM
OPERATIONS............................ $3,867,062 $ (4,964,011) $ 755,797 $2,812,217 $(10,863,128) $2,658,467 $(4,316,000)
========== ============ =========== ========== ============ ========== ===========
- ----------------------------------------------------------------------------------------------------------------------------------
</Table>
See notes to financial statements.
20
- --------------------------------------------------------------------------------
ASSET MANAGEMENT FUND
STATEMENTS OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
<Table>
<Caption>
MONEY MARKET FUND
----------------------------------
SIX MONTHS ENDED
APRIL 30, 2008 YEAR ENDED
(UNAUDITED) OCTOBER 31, 2007
- --------------------------------------------------------------------------------------
Increase (decrease) in net assets:
Operations:
Net investment income........................ $ 3,867,062 $ 9,130,122
Net realized (loss) from investment
transactions............................... -- (407)
------------- -------------
Change in net assets resulting from
operations.............................. 3,867,062 9,129,715
------------- -------------
Dividends paid to stockholders:
From net investment income:
Class I Stockholders....................... (2,763,550) (7,063,436)
Class D Stockholders....................... (1,103,512) (2,066,686)
------------- -------------
Total dividends paid to stockholders....... (3,867,062) (9,130,122)
------------- -------------
Capital Transactions:
Class I Shares:
Proceeds from sale of shares............... 488,076,890 697,711,439
Shares issued to stockholders in
reinvestment of dividends............... 2,130,169 5,311,340
Cost of shares repurchased................. (492,222,790) (681,323,464)
Class D Shares:
Proceeds from sale of shares............... 268,387,599 515,475,607
Shares issued to stockholders in
reinvestment of dividends............... 919,895 1,436,058
Cost of shares repurchased................. (265,998,272) (489,935,433)
------------- -------------
Change in net assets from capital
transactions............................ 1,293,491 48,675,547
------------- -------------
Change in net assets....................... 1,293,491 48,675,140
Net Assets:
Beginning of period............................. 189,877,247 141,202,107
------------- -------------
End of period................................... $ 191,170,738 $ 189,877,247
============= =============
Accumulated Net Investment Income (loss).......... $ -- $ --
============= =============
</Table>
- --------------------------------------------------------------------------------
See notes to financial statements.
21
- --------------------------------------------------------------------------------
ASSET MANAGEMENT FUND
STATEMENTS OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
<Table>
<Caption>
ULTRA SHORT MORTGAGE FUND ULTRA SHORT FUND
----------------------------------------------------------------
SIX MONTHS ENDED YEAR ENDED SIX MONTHS ENDED YEAR ENDED
APRIL 30, 2008 OCTOBER 31, APRIL 30, 2008 OCTOBER 31,
(UNAUDITED) 2007 (UNAUDITED) 2007
- -------------------------------------------------------------------------------------------------------
Increase (decrease) in net assets:
Operations:
Net investment income........... $ 48,144,087 $ 116,825,860 $ 4,575,049 $ 10,577,060
Net realized gains/(losses) from
investment transactions....... (4,307,452) (3,606,862) (3,236,596) (1,057,532)
Change in unrealized
appreciation/depreciation on
investments................... (48,800,646) (12,892,361) (582,656) (1,390,736)
-------------- -------------- ------------ ------------
Change in net assets resulting
from operations............ (4,964,011) 100,326,637 755,797 8,128,792
-------------- -------------- ------------ ------------
Dividends paid to stockholders:
From net investment income...... (47,204,406) (114,941,079) (4,573,079) (10,682,801)
-------------- -------------- ------------ ------------
Total dividends paid to
stockholders............... (47,204,406) (114,941,079) (4,573,079) (10,682,801)
-------------- -------------- ------------ ------------
Capital Transactions:
Proceeds from sale of shares.... 54,524,281 134,185,923 9,069,976 21,157,500
Shares issued to stockholders in
reinvestment of dividends..... 18,040,727 45,714,895 1,181,230 3,035,344
Cost of shares repurchased...... (350,688,705) (325,770,605) (50,235,738) (31,140,110)
Cost of in-kind shares
repurchased................... -- -- -- --
-------------- -------------- ------------ ------------
Change in net assets from
capital transactions....... (278,123,697) (145,869,787) (39,984,532) (6,947,266)
-------------- -------------- ------------ ------------
Change in net assets.......... (330,292,114) (160,484,229) (43,801,814) (9,501,275)
Net Assets:
Beginning of period................ 2,131,889,117 2,292,373,346 195,160,718 204,661,993
-------------- -------------- ------------ ------------
End of period...................... $1,801,597,003 $2,131,889,117 $151,358,904 $195,160,718
============== ============== ============ ============
Accumulated net investment
income/(loss)...................... $ 1,178,797 $ 239,116 $ 83,348 $ 81,378
- -------------------------------------------------------------------------------------------------------
</Table>
See notes to financial statements.
22
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
<Table>
<Caption>
SHORT U.S. GOVERNMENT FUND INTERMEDIATE MORTGAGE FUND U.S. GOVERNMENT MORTGAGE FUND
- --------------------------------------------------------------------------------------------------------------
SIX MONTHS ENDED YEAR ENDED SIX MONTHS ENDED YEAR ENDED SIX MONTHS ENDED YEAR ENDED
APRIL 30, 2008 OCTOBER 31, APRIL 30, 2008 OCTOBER 31, APRIL 30, 2008 OCTOBER 31,
(UNAUDITED) 2007 (UNAUDITED) 2007 (UNAUDITED) 2007
- --------------------------------------------------------------------------------------------------------------
$ 2,979,559 $ 7,352,578 $ 5,047,123 $ 12,920,019 $ 2,851,950 $ 7,474,660
(241,192) (411,493) (2,967,433) (1,202,637) 761,566 93,396
73,850 89,925 (12,942,818) (3,543,311) (955,049) (716,600)
------------ ------------ ------------ ------------ ------------ ------------
2,812,217 7,031,010 (10,863,128) 8,174,071 2,658,467 6,851,456
------------ ------------ ------------ ------------ ------------ ------------
(2,954,664) (7,315,008) (4,983,256) (12,733,365) (2,802,398) (7,300,729)
------------ ------------ ------------ ------------ ------------ ------------
(2,954,664) (7,315,008) (4,983,256) (12,733,365) (2,802,398) (7,300,729)
------------ ------------ ------------ ------------ ------------ ------------
14,591,465 1,475,743 550 251,950 10,550 126,266
1,926,417 4,473,716 1,331,020 3,989,540 1,488,199 4,140,857
(25,012,249) (35,188,675) (36,074,252) (28,712,317) (47,000,133) (36,836,284)
-- -- (8,178,923) -- -- --
------------ ------------ ------------ ------------ ------------ ------------
(8,494,367) (29,239,216) (42,921,605) (24,470,827) (45,501,384) (32,569,161)
------------ ------------ ------------ ------------ ------------ ------------
(8,636,814) (29,523,214) (58,767,989) (29,030,121) (45,645,315) (33,018,434)
132,726,666 162,249,880 230,076,306 259,106,427 131,069,795 164,088,229
------------ ------------ ------------ ------------ ------------ ------------
$124,089,852 $132,726,666 $171,308,317 $230,076,306 $ 85,424,480 $131,069,795
============ ============ ============ ============ ============ ============
$ 25,840 $ 945 $ 72,566 $ 8,699 $ 27,212 $ (22,340)
- --------------------------------------------------------------------------------------------------------------
</Table>
23
- --------------------------------------------------------------------------------
ASSET MANAGEMENT FUND
STATEMENTS OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
<Table>
<Caption>
LARGE CAP EQUITY FUND
------------------------------------------------
SIX MONTHS ENDED TEN MONTHS ENDED YEAR ENDED
APRIL 30, 2008 OCTOBER 31, DECEMBER 31,
(UNAUDITED) 2007 2006
- --------------------------------------------------------------------------------------------------
Increase (decrease) in net assets:
Operations:
Net investment income...................... $ 280,795 $ 297,918 $ 62,678
Net realized gains from investment
transactions............................. 2,447,944 5,389,677 6,951,631
Change in unrealized
appreciation/depreciation on
investments.............................. (7,044,739) (2,766,173) 2,267,874
----------- ------------ ------------
Change in net assets resulting from
operations............................ (4,316,000) 2,921,422 9,282,183
----------- ------------ ------------
Dividends paid to stockholders:
From net investment income................. (521,418) (285,078) (108,133)
From net realized gains.................... (5,389,673) -- (6,909,248)
Tax Return of Capital...................... -- -- (3,839)
----------- ------------ ------------
Total dividends paid to stockholders..... (5,911,091) (285,078) (7,021,220)
----------- ------------ ------------
Capital Transactions:
Proceeds from sale of shares............... 252,200 1,165,000 655,125
Shares issued to stockholders in
reinvestment of dividends................ 3,489,896 164,526 3,393,465
Cost of shares repurchased................. (606,653) (12,665,730) (23,780,798)
----------- ------------ ------------
Change in net assets from capital
transactions.......................... 3,135,443 (11,336,204) (19,732,208)
----------- ------------ ------------
Change in net assets..................... (7,091,648) (8,699,860) (17,471,245)
Net Assets:
Beginning of period........................... 57,460,887 66,160,747 83,631,992
----------- ------------ ------------
End of period................................. $50,369,239 $ 57,460,887 $ 66,160,747
=========== ============ ============
Accumulated net investment income/(loss)........ $ 1,217 $ 241,840 $ --
- --------------------------------------------------------------------------------------------------
</Table>
See notes to financial statements.
24
- --------------------------------------------------------------------------------
ASSET MANAGEMENT FUND
MONEY MARKET FUND
FINANCIAL HIGHLIGHTS -- CLASS I SHARES
SELECTED DATA FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD INDICATED.
- --------------------------------------------------------------------------------
<Table>
<Caption>
SIX MONTHS
ENDED YEAR ENDED OCTOBER 31,
APRIL 30, 2008 ------------------------------------------------------------
(UNAUDITED) 2007 2006 2005 2004 2003
- -------------------------------------------------------------------------------------------------------------------
Net asset value, beginning of
period.......................... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
-------- -------- -------- -------- -------- --------
Income from investment operations:
Net investment income........... 0.0172 0.0512 0.0465 0.0264 0.0104 0.0096
Net realized losses from
investments.................. -- --(a) -- --(a) -- --
-------- -------- -------- -------- -------- --------
Total from investment
operations.............. 0.0172 0.0512 0.0465 0.0264 0.0104 0.0096
-------- -------- -------- -------- -------- --------
Less distributions:
Dividends paid to
stockholders:................
From net investment income... (0.0172) (0.0512) (0.0465) (0.0264) (0.0104) (0.0096)
-------- -------- -------- -------- -------- --------
Net asset value, end of period.... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
======== ======== ======== ======== ======== ========
Total return...................... 1.73%(b) 5.24% 4.76% 2.68% 1.04% 0.97%
Ratios/Supplemental data:
Net assets, end of period (in
000's)....................... $129,704 $131,720 $110,021 $ 81,311 $ 31,883 $ 40,737
Ratio of expenses to average net
assets....................... 0.15%(c) 0.14% 0.18% 0.17% 0.11% 0.18%
Ratio of net investment income
to average net assets........ 3.38%(c) 5.12% 4.68% 2.84% 1.04% 0.96%
Ratio of expenses to average net
assets*...................... 0.28%(c) 0.40% 0.43% 0.42% 0.41% 0.39%
</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.
(b) Not annualized.
(c) Annualized.
See notes to financial statements.
25
- --------------------------------------------------------------------------------
ASSET MANAGEMENT FUND
MONEY MARKET FUND
FINANCIAL HIGHLIGHTS -- CLASS D SHARES
SELECTED DATA FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD INDICATED.
- --------------------------------------------------------------------------------
<Table>
<Caption>
SIX MONTHS
ENDED YEAR ENDED OCTOBER 31,
APRIL 30, 2008 ------------------------------------------------------------
(UNAUDITED) 2007 2006 2005 2004 2003
- -------------------------------------------------------------------------------------------------------------------
Net asset value, beginning of
period.......................... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
-------- -------- -------- -------- -------- --------
Income from investment operations:
Net investment income........... 0.0147 0.0462 0.0420 0.0219 0.0054 0.0046
Net realized losses from
investments.................. -- --(a) -- --(a) -- --
-------- -------- -------- -------- -------- --------
Total from investment
operations.............. 0.0147 0.0462 0.0420 0.0219 0.0054 0.0046
-------- -------- -------- -------- -------- --------
Less distributions:
Dividends paid to
stockholders:................
From net investment income... (0.0147) (0.0462) (0.0420) (0.0219) (0.0054) (0.0046)
-------- -------- -------- -------- -------- --------
Net asset value, end of period.... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
======== ======== ======== ======== ======== ========
Total return...................... 1.48%(b) 4.72% 4.29% 2.22% 0.54% 0.47%
Ratios/Supplemental data:
Net assets, end of period (in
000's)....................... $ 61,467 $ 58,157 $ 31,181 $ 38,622 $ 19,089 $ 23,525
Ratio of expenses to average net
assets....................... 0.64%(c) 0.64% 0.63% 0.63% 0.61% 0.67%
Ratio of net investment income
to average net assets........ 3.09%(c) 4.60% 4.29% 2.23% 0.54% 0.45%
Ratio of expenses to average net
assets*...................... 0.78%(c) 0.85% 0.88% 0.88% 0.86% 0.84%
</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.
(b) Not annualized.
(c) Annualized.
See notes to financial statements.
26
- --------------------------------------------------------------------------------
ASSET MANAGEMENT FUND
ULTRA SHORT MORTGAGE FUND
FINANCIAL HIGHLIGHTS
SELECTED DATA FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD INDICATED.
- --------------------------------------------------------------------------------
<Table>
<Caption>
SIX MONTHS
ENDED YEAR ENDED OCTOBER 31,
APRIL 30, 2008 ----------------------------------------------------------------------
(UNAUDITED) 2007 2006 2005 2004 2003
- --------------------------------------------------------------------------------------------------------------------------
Net asset value, beginning of
period....................... $ 9.62 $ 9.68 $ 9.69 $ 9.83 $ 9.88 $ 9.95
---------- ---------- ---------- ---------- ---------- ----------
Income from investment
operations:
Net investment income........ 0.2318 0.5107 0.4216 0.2706 0.1824 0.1778
Net realized and unrealized
gains (losses) from
investments............... (0.2750) (0.0686) 0.0041(a) (0.0930) (0.0070) (0.0230)
---------- ---------- ---------- ---------- ---------- ----------
Total from investment
operations........... (0.0432) 0.4421 0.4257 0.1776 0.1754 0.1548
---------- ---------- ---------- ---------- ---------- ----------
Less distributions:
Dividends paid to
stockholders:
From net investment
income.................. (0.2268) (0.5021) (0.4357) (0.3176) (0.2254) (0.2248)
---------- ---------- ---------- ---------- ---------- ----------
Change in net asset value...... (0.27) (0.06) (0.01) (0.14) (0.05) (0.07)
---------- ---------- ---------- ---------- ---------- ----------
Net asset value, end of
period....................... $ 9.35 $ 9.62 $ 9.68 $ 9.69 $ 9.83 $ 9.88
========== ========== ========== ========== ========== ==========
Total return................... (0.48%)(b) 4.67% 4.49% 1.83% 1.79% 1.57%
Ratios/Supplemental data:
Net assets, end of period (in
000's).................... $1,801,597 $2,131,889 $2,292,373 $2,674,298 $3,317,024 $4,596,939
Ratio of expenses to average
net assets................ 0.47%(c) 0.46% 0.46% 0.46% 0.44% 0.44%
Ratio of net investment
income to average net
assets.................... 4.86%(c) 5.28% 4.35% 2.80% 1.92% 1.72%
Ratio of expenses to average
net assets*............... 0.77%(c) 0.76% 0.76% 0.76% 0.72% 0.71%
Portfolio turnover rate...... 23% 59% 83% 63% 50% 117%
</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) The amount shown for a share outstanding throughout the period does not
accord with the change in aggregate gains and losses in the portfolio of
securities during the period because of the timing of sales and purchases of
fund shares in relation to fluctuating market values during the period.
(b) Not annualized.
(c) Annualized.
See notes to financial statements.
27
- --------------------------------------------------------------------------------
ASSET MANAGEMENT FUND
ULTRA SHORT FUND
FINANCIAL HIGHLIGHTS
SELECTED DATA FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD INDICATED.
- --------------------------------------------------------------------------------
<Table>
<Caption>
SIX MONTHS
ENDED YEAR ENDED OCTOBER 31,
APRIL 30, 2008 ------------------------------------------------------------
(UNAUDITED) 2007 2006 2005 2004 2003
- ------------------------------------------------------------------------------------------------------------------
Net asset value, beginning of
period......................... $ 9.61 $ 9.74 $ 9.74 $ 9.87 $ 9.92 $ 9.95
-------- -------- -------- -------- -------- --------
Income from investment
operations:
Net investment income.......... 0.2483 0.5137 0.4462 0.2909 0.1985 0.1601
Net realized and unrealized
gains (losses) from
investments................. (0.2212) (0.1249) 0.0185 (0.0832) (0.0217) 0.0242
-------- -------- -------- -------- -------- --------
Total from investment
operations............. 0.0271 0.3888 0.4647 0.2077 0.1768 0.1843
-------- -------- -------- -------- -------- --------
Less distributions:
Dividends paid to stockholders:
From net investment income.. (0.2471) (0.5188) (0.4647) (0.3377) (0.2268) (0.2143)
-------- -------- -------- -------- -------- --------
Change in net asset value........ (0.22) (0.13) -- (0.13) (0.05) (0.03)
-------- -------- -------- -------- -------- --------
Net asset value, end of period... $ 9.39 $ 9.61 $ 9.74 $ 9.74 $ 9.87 $ 9.92
======== ======== ======== ======== ======== ========
Total return..................... 0.26%(a) 4.07% 4.88% 2.14% 1.80% 1.87%
Ratios/Supplemental data:
Net assets, end of period (in
000's)...................... $151,359 $195,161 $204,662 $231,797 $291,349 $251,668
Ratio of expenses to average
net assets.................. 0.49%(b) 0.48% 0.48% 0.49% 0.47% 0.47%
Ratio of net investment income
to average net assets....... 5.19%(b) 5.29% 4.57% 2.99% 2.00% 1.66%
Ratio of expenses to average
net assets*................. 0.79%(b) 0.78% 0.78% 0.79% 0.77% 0.77%
Portfolio turnover rate........ 22% 36% 89% 36% 118% 126%
</Table>
- --------------------------------------------------------------------------------
* During the period, certain fees were voluntarily reduced. If such voluntary
fee reductions had not occurred, the ratios would have been as indicated.
(a) Not annualized.
(b) Annualized.
See notes to financial statements.
28
- --------------------------------------------------------------------------------
ASSET MANAGEMENT FUND
SHORT U.S. GOVERNMENT FUND
FINANCIAL HIGHLIGHTS
SELECTED DATA FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD INDICATED.
- --------------------------------------------------------------------------------
<Table>
<Caption>
SIX MONTHS
ENDED YEAR ENDED OCTOBER 31,
APRIL 30, 2008 ------------------------------------------------------------
(UNAUDITED) 2007 2006 2005 2004 2003
- ------------------------------------------------------------------------------------------------------------------
Net asset value, beginning of
period......................... $ 10.35 $ 10.37 $ 10.37 $ 10.61 $ 10.68 $ 10.78
-------- -------- -------- -------- -------- --------
Income from investment
operations:
Net investment income.......... 0.2361 0.5222 0.4370 0.3421 0.2640 0.2738
Net realized and unrealized
gains (losses) from
investments................. (0.0320) (0.0232) 0.0209 (0.2035) (0.0415) (0.0686)
-------- -------- -------- -------- -------- --------
Total from investment
operations............. 0.2041 0.4990 0.4579 0.1386 0.2225 0.2052
-------- -------- -------- -------- -------- --------
Less distributions:
Dividends paid to stockholders:
From net investment income.. (0.2341) (0.5190) (0.4579) (0.3786) (0.2925) (0.3052)
-------- -------- -------- -------- -------- --------
Change in net asset value........ (0.03) (0.02) -- (0.24) (0.07) (0.10)
-------- -------- -------- -------- -------- --------
Net asset value, end of period... $ 10.32 $ 10.35 $ 10.37 $ 10.37 $ 10.61 $ 10.68
======== ======== ======== ======== ======== ========
Total return..................... 1.97%(a) 4.93% 4.52% 1.33% 2.11% 1.92%
Ratios/Supplemental data:
Net assets, end of period (in
000's)...................... $124,090 $132,727 $162,250 $156,322 $153,252 $232,605
Ratio of expenses to average
net assets.................. 0.47%(b) 0.48% 0.51% 0.50% 0.48% 0.47%
Ratio of net investment income
to average net assets....... 4.56%(b) 5.04% 4.22% 3.24% 2.50% 2.47%
Portfolio turnover rate........ 32% 42% 56% 95% 152% 72%
</Table>
- --------------------------------------------------------------------------------
(a) Not annualized.
(b) Annualized.
See notes to financial statements.
29
- --------------------------------------------------------------------------------
ASSET MANAGEMENT FUND
INTERMEDIATE MORTGAGE FUND
FINANCIAL HIGHLIGHTS
SELECTED DATA FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD INDICATED.
- --------------------------------------------------------------------------------
<Table>
<Caption>
SIX MONTHS
ENDED YEAR ENDED OCTOBER 31,
APRIL 30, 2008 ------------------------------------------------------------
(UNAUDITED) 2007 2006 2005 2004 2003
- -----------------------------------------------------------------------------------------------------------------
Net asset value, beginning of
period........................ $ 9.12 $ 9.29 $ 9.28 $ 9.57 $ 9.62 $ 9.79
-------- -------- -------- -------- -------- --------
Income from investment
operations:
Net investment income......... 0.2301 0.4810 0.4306 0.3792 0.2892 0.2525
Net realized and unrealized
gains (losses) from
investments................ (0.7333) (0.1774) 0.0123 (0.2778) (0.0233) (0.1156)
-------- -------- -------- -------- -------- --------
Total from investment
operations............ (0.5032) 0.3036 0.4429 0.1014 0.2659 0.1369
-------- -------- -------- -------- -------- --------
Less distributions:
Dividends paid to
stockholders:
From net investment
income................... (0.2268) (0.4736) (0.4329) (0.3914) (0.3159) (0.3069)
-------- -------- -------- -------- -------- --------
Change in net asset value....... (0.73) (0.17) 0.01 (0.29) (0.05) (0.17)
-------- -------- -------- -------- -------- --------
Net asset value, end of period.. $ 8.39 $ 9.12 $ 9.29 $ 9.28 $ 9.57 $ 9.62
======== ======== ======== ======== ======== ========
Total return.................... (5.61%)(a) 3.31% 4.90% 1.07% 2.81% 1.41%
Ratios/Supplemental data:
Net assets, end of period (in
000's)..................... $171,308 $230,076 $259,106 $277,961 $298,308 $347,858
Ratio of expenses to average
net assets................. 0.49%(b) 0.48% 0.48% 0.48% 0.47% 0.47%
Ratio of net investment income
to average net assets...... 5.20%(b) 5.19% 4.65% 4.02% 3.02% 2.52%
Ratio of expenses to average
net assets*................ 0.59%(b) 0.58% 0.58% 0.58% 0.57% 0.57%
Portfolio turnover rate....... 12% 39% 56% 95% 148% 98%
</Table>
- --------------------------------------------------------------------------------
* During the period, certain fees were voluntarily reduced. If such voluntary
fee reductions had not occurred, the ratios would have been as indicated.
(a) Not annualized.
(b) Annualized.
See notes to financial statements.
30
- --------------------------------------------------------------------------------
ASSET MANAGEMENT FUND
U.S. GOVERNMENT MORTGAGE FUND
FINANCIAL HIGHLIGHTS
SELECTED DATA FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD INDICATED.
- --------------------------------------------------------------------------------
<Table>
<Caption>
SIX MONTHS
ENDED YEAR ENDED OCTOBER 31,
APRIL 30, 2008 ------------------------------------------------------------
(UNAUDITED) 2007 2006 2005 2004 2003
- ------------------------------------------------------------------------------------------------------------------
Net asset value, beginning of
period......................... $ 10.13 $ 10.18 $ 10.19 $ 10.59 $ 10.56 $ 10.77
-------- -------- -------- -------- -------- --------
Income from investment
operations:
Net investment income.......... 0.2492 0.5287 0.5038 0.4855 0.3875 0.3689
Net realized and unrealized
gains (losses) on
investments................. (0.0549) (0.0631) (0.0053) (0.3880) 0.0795 (0.1511)
-------- -------- -------- -------- -------- --------
Total from investment
operations............. 0.1943 0.4656 0.4985 0.0975 0.4670 0.2178
-------- -------- -------- -------- -------- --------
Less distributions:
Dividends paid to stockholders:
From net investment income.. (0.2443) (0.5156) (0.5085) (0.4975) (0.4370) (0.4278)
-------- -------- -------- -------- -------- --------
Change in net asset value........ (0.05) (0.05) (0.01) (0.40) 0.03 (0.21)
-------- -------- -------- -------- -------- --------
Net asset value, end of period... $ 10.08 $ 10.13 $ 10.18 $ 10.19 $ 10.59 $ 10.56
======== ======== ======== ======== ======== ========
Total return..................... 1.90%(a) 4.69% 5.04% 0.92% 4.52% 2.04%
Ratios/Supplemental data:
Net assets, end of period (in
000's)...................... $ 85,424 $131,070 $164,088 $166,048 $166,868 $204,566
Ratio of expenses to average
net assets.................. 0.51%(b) 0.49% 0.48% 0.48% 0.47% 0.47%
Ratio of net investment income
to average net assets....... 4.92%(b) 5.20% 4.98% 4.66% 3.70% 3.39%
Portfolio turnover rate........ 24% 39% 105% 71% 171% 102%
</Table>
- --------------------------------------------------------------------------------
(a) Not annualized.
(b) Annualized.
See notes to financial statements.
31
- --------------------------------------------------------------------------------
ASSET MANAGEMENT FUND
LARGE CAP EQUITY FUND
FINANCIAL HIGHLIGHTS
SELECTED DATA FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD INDICATED.
- --------------------------------------------------------------------------------
<Table>
<Caption>
SIX MONTHS TEN MONTHS
ENDED ENDED YEAR ENDED DECEMBER 31,
APRIL 30, 2008 OCTOBER 31, ---------------------------------------------------------
(UNAUDITED) 2007* 2006 2005 2004 2003 2002
- ---------------------------------------------------------------------------------------------------------------------------
Net asset value, beginning of
period..................... $ 10.47 $ 10.01 $ 9.77 $ 10.56 $ 10.61 $ 9.09 $ 11.16
------- ------- ------- ------- ------- -------- --------
Income from investment
operations:
Net investment income...... 0.05 0.05 0.01 0.01 0.05 0.01 0.02
Net realized and unrealized
gains (losses) from
investments............. (0.81) 0.46 1.35 (0.29) 0.50 1.57 (1.83)
------- ------- ------- ------- ------- -------- --------
Total from investment
operations......... (0.76) 0.51 1.36 (0.28) 0.55 1.58 (1.81)
------- ------- ------- ------- ------- -------- --------
Less distributions:
Dividends paid to
stockholders:
From net investment
income................ (0.09) (0.05) (0.02) (0.01) (0.05) (0.01) (0.02)
From net realized gains
on investments........ (0.98) -- (1.10) (0.50) (0.55) (0.05) (0.24)
Return of capital....... -- -- --(a) -- -- --(a) --
------- ------- ------- ------- ------- -------- --------
Total distributions... (1.07) (0.05) (1.12) (0.51) (0.60) (0.06) (0.26)
------- ------- ------- ------- ------- -------- --------
Change in net asset value.... (1.83) 0.46 0.24 (0.79) (0.05) 1.52 (2.07)
------- ------- ------- ------- ------- -------- --------
Net asset value, end of
period..................... $ 8.64 $ 10.47 $ 10.01 $ 9.77 $ 10.56 $ 10.61 $ 9.09
======= ======= ======= ======= ======= ======== ========
Total return................. (7.82%)(b) 5.11%(b) 13.83% (2.70%) 5.16% 17.48% (16.19%)
Ratios/Supplemental data:
Net assets, end of period
(000's)................. $50,369(c) $57,461 $66,161 $83,632 $91,059 $107,923 $ 90,871
Ratio of net expenses to
average net assets...... 0.91%(c) 1.18%(c) 1.68% 1.44% 1.20% 1.32% 1.23%
Ratio of net investment
income to average net
assets.................. 1.09% 0.60%(c) 0.09% 0.11% 0.46% 0.14% 0.20%
Ratio of net expenses to
average net assets**.... 1.01%(c) 1.27%(c) -- -- -- -- --
Portfolio turnover rate.... 7% 13% 10% 23% 14% 22% 17%
</Table>
- --------------------------------------------------------------------------------
* In connection with the reorganization of the AMF Large Cap Equity
Institutional Fund, Inc. (the Predecessor Fund) into the Large Cap Equity
Fund on January 8, 2007, the Net Asset Value (NAV) of the Predecessor Fund
changed to $10.00 per share. Shareholders received the number of shares of
Large Cap Equity Fund equal in value to the number of shares held in the
Predecessor Fund. The amounts presented prior to this date have been
restated to reflect the change in NAV during the reorganization.
** During the period, certain fees were voluntarily reduced. If such
voluntarily fee reductions had not occurred, the ratios would have been as
indicated.
(a) Distributions per share were less than $0.005.
(b) Not annualized.
(c) Annualized.
See notes to financial statements.
32
- --------------------------------------------------------------------------------
ASSET MANAGEMENT FUND
NOTES TO FINANCIAL STATEMENTS
APRIL 30, 2008 (UNAUDITED)
- --------------------------------------------------------------------------------
Asset Management Fund (the "Trust") was reorganized as a Delaware statutory
trust on September 30, 1999, and is registered under the Investment Company Act
of 1940, as amended (the "1940 Act"), as a diversified open-end management
company. As of April 30, 2008, the Trust is authorized to issue an unlimited
number of shares in seven separate series: the Money Market Fund, the Ultra
Short Mortgage Fund, the Ultra Short Fund, the Short U.S. Government Fund, the
Intermediate Mortgage Fund, the U.S. Government Mortgage Fund and the Large Cap
Equity Fund (referred to individually as a "Fund" and collectively as the
"Funds"). Each of the Funds, except the Money Market Fund, offer a single class
of shares. The Money Market Fund is authorized to sell two classes of shares,
Class I Shares and Class D Shares. Class I and Class D Shares of the Money
Market Fund have the same rights and obligations 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.
The Trust maintains an insurance policy which insures its officers and trustees
against certain liabilities.
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.
Ultra Short Mortgage Fund, Ultra Short Fund, Short U.S. Government Fund,
Intermediate Mortgage Fund and U.S. Government Mortgage Fund:
The Funds' investments are valued at prices obtained from an independent
pricing service approved by the Board of Trustees or, for certain securities, a
fair value pricing methodology developed by the Adviser and approved by the
Board of Trustees. Within the fair value pricing methodology developed by the
Adviser, among the more specific factors that are considered in determining the
fair value of investments in debt instruments are: (1) information obtained with
respect to market transactions in such securities or comparable securities; (2)
the price and extent of public trading in similar securities of the issue or
comparable companies; (3) the fundamental analytical data relating to the
investment; (4) quotations from broker/dealers, yields, maturities, ratings and
various relationships between securities; and (5) evaluation of the forces which
influence the market in which these securities are purchased and sold. The
valuation process also takes into consideration factors such as interest rate
changes, movements in credit spreads, default rate assumptions, prepayment
assumptions, type and quality of collateral, and security seasoning. Imprecision
in estimating fair value can impact the amount of unrealized appreciation or
depreciation recorded for a particular security and differences in the
assumptions used could result in a different
33
- --------------------------------------------------------------------------------
ASSET MANAGEMENT FUND
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
APRIL 30, 2008 (UNAUDITED)
- --------------------------------------------------------------------------------
determination of fair value, and those differences could be material.
Fair value pricing is inherently a process of estimates and judgments. Fair
value prices established by the Fund may fluctuate to a greater degree than
securities for which market quotes are readily available and may differ
materially from the value that might be realized if the investments were sold at
the time of pricing. There can be no assurance that the Fund could purchase or
sell a portfolio investment at the fair value price used to calculate the Fund's
NAV. In addition, changes in the value of portfolio investments priced at fair
value may be less frequent and of greater magnitude than changes in the price of
securities that trade frequently in the marketplace, resulting in potentially
greater NAV volatility.
While the Trust's policy is intended to result in a calculation of a Fund's
NAV that fairly reflects security values as of the time of pricing, the Trust
cannot ensure that fair values would accurately reflect the price that a Fund
could obtain for a security if it were to dispose of that security as of the
time of pricing, particularly in a forced or distressed sale.
Short-term instruments maturing within 60 days of the valuation date may be
valued based upon their amortized cost.
Large Cap Equity Fund:
Securities traded on the NASDAQ National Market System are valued at the
official closing price as reported by NASDAQ. Securities traded on national
exchanges are valued at the last reported sale price thereof where the security
is principally traded. In the case of over-the-counter securities, securities
are valued at the mean between closing bid and asked prices as of the close of
regular trading on the New York Stock Exchange (normally 4:00 PM Eastern time).
Short-term instruments maturing within 60 days of the valuation date are valued
at amortized cost, which approximates market value. Securities for which such
quotations are not readily available are valued at fair value as determined in
good faith by the Valuation Committee under the direction of the Board of
Trustees.
Liquidity and Valuation of Certain Securities
Recent instability in the markets for fixed income securities, particularly
non-agency mortgage-backed securities, has affected and is expected to continue
to affect the liquidity and valuation of such securities.
Short U.S. Government Fund and U.S. Government Fund may invest up to twenty
percent of their assets in non-agency structured securities backed by
residential mortgages and the other Funds may invest without limit in such
securities. The current market instability has made it more difficult to obtain
market quotations on many of the Funds' portfolio securities. The value and
related income of these securities are sensitive to changes in economic
conditions, particularly changes in the housing market (e.g., housing prices,
mortgage delinquencies and/or defaults). Deteriorating fundamentals in the U.S.
housing market and heightened concerns about credit quality within the
residential mortgage-backed securities market have adversely impacted the
valuation of securities held by the Fund and resulted in increased volatility of
the values of securities held by the Fund. Certain holdings of the Fund have
also experienced material downgrades in their credit ratings by one or more of
nationally recognized statistical rating organizations (Moody's, Standard &
Poors, Fitch, etc.) as a result of these deteriorating housing fundamentals.
Further deterioration in the housing industry could adversely impact the Fund's
NAV, future performance and liquidity.
Under current market conditions many of the Funds' portfolio securities may be
deemed to be illiquid. Illiquid securities are generally those that cannot be
sold or disposed of in the ordinary course of business at approximately the
prices at which they are valued. This may result in illiquid
34
- --------------------------------------------------------------------------------
ASSET MANAGEMENT FUND
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
APRIL 30, 2008 (UNAUDITED)
- --------------------------------------------------------------------------------
securities being disposed of at a price different from the recorded value since
the market price of illiquid securities generally is more volatile than that of
more liquid securities. This illiquidity of portfolio securities may result in
the Funds incurring greater losses on the sale of some portfolio securities than
under more stable market conditions. Such losses could adversely impact the
Funds' net asset values per share.
Redemption-In-Kind Policy
Pursuant to the Agreement and Declaration of Trust, the Funds have reserved
the right to effect in-kind redemptions when the Board of Trustees determines
that is in the best interest of the Funds to do so. In light of current market
conditions, the Funds announced their intention to exercise this right in
February 2008. Pursuant to an 18f-1 election made by the Funds, it is the policy
of the Funds to effect redemption requests in amount not to exceed $250,000 over
a ninety day period in cash. Redemptions in excess of this amount may be
effected in-kind.
New Accounting Pronouncement
In September 2006, the Financial Accounting Standards Board (FASB) issued
Statement of Financial Accounting Standards No. 157, "Fair Value Measurements"
(SFAS No. 157). SFAS No. 157 defines fair value, establishes a framework for
measuring fair value in accordance with generally accepted accounting principles
and expands disclosure about fair value measurements. SFAS No. 157 is effective
for fiscal years beginning after November 15, 2007. At this time, the Funds do
not believe the adoption of SFAS 157 will significantly impact the financial
statements; however, additional disclosures may be required regarding the inputs
used to develop the measurements and the effect these measurements had on the
changes in assets for the period.
REPURCHASE AGREEMENTS
Obligations of the U.S. Government or other obligations that are not subject
to any investment limitation on the part of national banks may be purchased from
government securities dealers or the custodian bank, subject to the seller's
agreement to repurchase them at an agreed upon date and price. The value of
collateral underlying the repurchase agreement will always be at least equal to
the repurchase price, including any accrued interest earned on the repurchase
agreement. If the counter-party defaults, and the fair value of the collateral
declines, realization of the collateral by Funds may be delayed or limited.
SECURITIES PURCHASED ON A WHEN-ISSUED OR DELAYED-DELIVERY BASIS
Each Fund, except the Money Market Fund and the Large Cap Equity 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 or 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. As of April 30, 2008, the Funds did not own any
when-issued or delayed-delivery securities.
35
- --------------------------------------------------------------------------------
ASSET MANAGEMENT FUND
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
APRIL 30, 2008 (UNAUDITED)
- --------------------------------------------------------------------------------
DIVIDENDS TO SHAREHOLDERS
Money Market Fund, Ultra Short Mortgage Fund, Ultra Short Fund, Short U.S.
Government Fund, Intermediate Mortgage Fund and U.S. Government Mortgage Fund:
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.
Large Cap Equity Fund:
Dividends from net investment income are declared and paid quarterly. Net
short-term and long-term capital gains, if any, are declared and paid annually.
Distributions from net investment income and from net realized capital gains
are determined in accordance with federal income tax regulations, which may
differ from accounting principles generally accepted in the United States. These
"book/tax" differences are either considered temporary or permanent in nature.
To the extent these differences are permanent in nature (e.g. reclass of
dividend distribution and return of capital), such amounts are reclassified
within the composition of net assets based on their federal tax-basis treatment;
temporary differences do not require reclassification. Distributions to
shareholders that exceed net investment income and net realized capital gains
for tax purposes are reported as distributions of capital.
FEDERAL TAXES
No provision is made for Federal income taxes as 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.
In June, 2006, the Financial Accounting Standards Board (FASB) released FASB
Interpretation No. 48, "Accounting for Uncertainty in Income Taxes" (FIN 48).
FIN 48 provides guidance for how uncertain tax positions should be recognized,
measured, presented and disclosed in the financial statements. FIN 48 requires
the evaluation of tax positions taken or expected to be taken in the course of
preparing the Funds' tax returns to determine whether the tax positions are
"more-likely-than-not" of being sustained by the applicable tax authority based
on the technical merits of the position. Tax positions not deemed to meet the
more-likely-than-not threshold would be recorded as a tax benefit or expense in
the current year. Adoption of FIN 48 is required no later than the last business
day of the first financial reporting date which occurs during the fiscal year
beginning after December 15, 2006 and is to be applied to all open tax years as
of the effective date. Accordingly, the Funds were required to implement FIN 48
in their net asset value per share calculations as of April 30, 2008. The
adoption of FIN 48 had no impact to the financial statements.
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 no later than one business day after
trade date. However, for financial reporting purposes, investment transactions
are reported on 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
36
- --------------------------------------------------------------------------------
ASSET MANAGEMENT FUND
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
APRIL 30, 2008 (UNAUDITED)
- --------------------------------------------------------------------------------
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. Fees and transactions with affiliates were as follows:
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 (SFSI).
As compensation for investment advisory services, the Funds pay 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 0.15% of the
first $500 million, 0.125% of the next $500 million, and 0.10% of such net
assets in excess of $1 billion. Through March 1, 2008, the Adviser voluntarily
waived its entire advisory fee. Effective March 1, 2008, the Adviser will
voluntarily waive 0.10% of its advisory fee.
The investment advisory fee rate for the Ultra Short Mortgage Fund is 0.45% of
the first $3 billion, 0.35% of the next $2 billion, and 0.25% of such net assets
in excess of $5 billion. The Adviser voluntarily waived a portion of its fee so
that the Fund paid 0.25% of average daily net assets for the six months ended
April 30, 2008.
The investment advisory fee rate for the Ultra Short Fund is 0.45% of the
average daily net assets. The Adviser voluntarily waived a portion of its fee so
that the Fund paid 0.25% of average daily net assets for the six months ended
April 30, 2008.
The investment advisory fee rate for each of the Short U.S. Government Fund
and the U.S. Government Mortgage Fund, computed separately, is 0.25% of the
first $500 million, 0.175% of the next $500 million, 0.125% of the next $500
million, and 0.10% of such net assets in excess of $1.5 billion.
The investment advisory fee rate for the Intermediate Mortgage Fund is 0.35%
of the first $500 million, 0.275% of the next $500 million, 0.20% of the next
$500 million, and 0.10% of such net assets in excess of $1.5 billion. The
Adviser voluntarily waived a portion of its fee so that the Fund paid 0.25% of
average daily net assets for the six months ended April 30, 2008.
The investment advisory fee rate for the Large Cap Equity Fund is 0.65% of the
first $250 million and 0.55% for assets over $250 million.
The Adviser has agreed to reduce 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 0.75%.
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 SFSI.
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: 0.15% of the first
$500 million,
37
- --------------------------------------------------------------------------------
ASSET MANAGEMENT FUND
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
APRIL 30, 2008 (UNAUDITED)
- --------------------------------------------------------------------------------
0.125% of the next $500 million, 0.10% of the next $1 billion, and 0.075% of
such combined net assets in excess of $2 billion. The fee is allocated between
the two Funds based on their relative average net assets. The Distributor
voluntarily waived a portion of its 12b-1 fee for the Class I Shares of the
Money Market Fund so that the Fund paid 0.05% of average daily net assets for
the six months ended April 30, 2008. The Money Market Fund distribution fee
waiver amounted to $81,796 for Class I Shares for the six months ended April 30,
2008.
The distribution fee rate for the Money Market Class D Shares is 0.60% of
average daily net assets. The Distributor voluntarily waived a portion of the
12b-1 fees for the Class D Shares of the Money Market Fund so that the Fund paid
0.55% of average daily net assets from December 18, 2006, to April 30, 2008.
Prior to December 18, 2006, the Distributor voluntarily waived a portion of its
fee so that the Fund paid 0.50% of average daily net assets. The Money Market
Fund Class D Shares distribution fee waiver amounted to $17,848 for the six
months ended April 30, 2008.
The distribution fee rate for each of the Ultra Short Mortgage Fund and the
Ultra Short Fund, computed separately, is 0.25% of average daily net assets. The
Distributor voluntarily waived a portion of its fee so that the Ultra Short
Mortgage Fund and the Ultra Short Fund paid 0.15% of average daily net assets
for the six months ended April 30, 2008.
The distribution fee rate for each of the Intermediate Mortgage Fund and the
U.S. Government Mortgage Fund, computed separately, is as follows: 0.15% of the
first $500 million, 0.125% of the next $500 million, 0.10% of the next $500
million, and 0.075% of such net assets in excess of $1.5 billion.
The distribution fee rate for the Large Cap Equity Fund is 0.25% of average
daily net assets. The Distributor waived a portion of its fee so that the Large
Cap Equity Fund paid 0.15% of average daily net assets for the six months ended
April 30, 2008.
Citi Fund Services Ohio, Inc. ("Citi") (formerly known as BISYS Fund Services
Ohio, Inc.), serves the Trust as administrator (the "Administrator"), fund
accountant and transfer agent (the "Transfer Agent"). Citi is a wholly-owned
subsidiary of Citi Investor Services, Inc. The fee rate for Citi's services for
each of the Funds, computed separately, is as follows: 0.03% of the first $1
billion, 0.02% of the next $1 billion, and 0.01% of such net assets in excess of
$2 billion, with a minimum annual fee of $393,200 for the Trust. Citi also
receives an account based fee and other servicing expenses.
Under a Compliance Services Agreement between the Funds' and Citi (the "CCO
Agreement"), Citi makes an employee available to serve as the Funds' Chief
Compliance Officer (the "CCO"). Under the CCO Agreement, Citi also provides
infrastructure and support in implementing the written policies and procedures
comprising the Funds' compliance program, including support services to the CCO.
For the services provided under the CCO Agreement, the Funds paid Citi $69,269
for the six months ended April 30, 2008, plus certain out of pocket expenses.
Citi pays the salary and other compensation earned by any such individuals as
employees of Citi.
38
- --------------------------------------------------------------------------------
ASSET MANAGEMENT FUND
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
APRIL 30, 2008 (UNAUDITED)
- --------------------------------------------------------------------------------
C. Transactions in shares of the Trust for the six months ended April 30, 2008,
and the year ended October 31, 2007, were as follows, and for the six months
ended April 30, 2008, and the ten months ended October 31, 2007, for the Large
Cap Equity fund:
<Table>
<Caption>
- ----------------------------------------------------------------------------------------------
MONEY MARKET FUND
----------------------------------
SIX MONTHS ENDED YEAR ENDED
APRIL 30, 2008 OCTOBER 31, 2007
- ----------------------------------------------------------------------------------------------
(UNAUDITED)
Share transactions Class I:
Sale of shares.......................................... 488,076,890 697,711,159
Shares issued to stockholders in reinvestment
dividends............................................ 2,130,169 5,311,340
Shares repurchased...................................... (492,222,790) (681,323,464)
------------ ------------
Net increase (decrease)................................. (2,015,731) 21,699,035
Shares Outstanding
Beginning of year.................................... 131,731,364 110,032,329
------------ ------------
End of period........................................ 129,715,633 131,731,364
============ ============
Share transactions Class D:
Sale of shares.......................................... 268,387,599 515,475,480
Shares issued to stockholders in reinvestment
dividends............................................ 919,895 1,436,058
Shares repurchased...................................... (265,998,272) (489,935,433)
------------ ------------
Net increase............................................ 3,309,222 26,976,105
Shares Outstanding
Beginning of year.................................... 58,157,834 31,181,729
------------ ------------
End of period........................................ 61,467,056 58,157,834
============ ============
- ----------------------------------------------------------------------------------------------
</Table>
<Table>
<Caption>
- --------------------------------------------------------------------------------------------------------------
ULTRA SHORT MORTGAGE FUND ULTRA SHORT FUND
-------------------------------------------------------------------------
SIX MONTHS ENDED YEAR ENDED SIX MONTHS ENDED YEAR ENDED
APRIL 30, 2008 OCTOBER 31, 2007 APRIL 30, 2008 OCTOBER 31, 2007
- --------------------------------------------------------------------------------------------------------------
(UNAUDITED) (UNAUDITED)
Share transactions:
Sale of shares................... 5,677,281 13,894,313 940,555 2,173,719
Shares issued to stockholders in
reinvestment dividends........ 1,884,323 4,734,757 123,296 312,516
Shares repurchased............... (36,636,083) (33,719,934) (5,242,334) (3,199,896)
----------- ----------- ---------- ----------
Net decrease..................... (29,074,479) (15,090,864) (4,178,483) (713,661)
Shares Outstanding
Beginning of year............. 221,664,648 236,755,512 20,298,363 21,012,024
----------- ----------- ---------- ----------
End of period................. 192,590,169 221,664,648 16,119,880 20,298,363
=========== =========== ========== ==========
- --------------------------------------------------------------------------------------------------------------
</Table>
39
- --------------------------------------------------------------------------------
ASSET MANAGEMENT FUND
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
APRIL 30, 2008 (UNAUDITED)
- --------------------------------------------------------------------------------
<Table>
<Caption>
- --------------------------------------------------------------------------------------------------------------
SHORT U.S. GOVERNMENT FUND INTERMEDIATE MORTGAGE FUND
-------------------------------------------------------------------------
SIX MONTHS ENDED YEAR ENDED SIX MONTHS ENDED YEAR ENDED
APRIL 30, 2008 OCTOBER 31, 2007 APRIL 30, 2008 OCTOBER 31, 2007
- --------------------------------------------------------------------------------------------------------------
(UNAUDITED) (UNAUDITED)
Share transactions:
Sale of shares................... 1,408,588 142,766 66 27,209
Shares issued to stockholders in
reinvestment dividends........ 184,680 432,501 150,005 430,733
Shares repurchased............... (2,396,252) (3,405,494) (4,955,833) (3,114,348)
---------- ---------- ---------- ----------
Net decrease..................... (802,984) (2,830,227) (4,805,762) (2,656,406)
Shares Outstanding
Beginning of year............. 12,822,122 15,652,349 25,230,785 27,887,191
---------- ---------- ---------- ----------
End of period................. 12,019,138 12,822,122 20,425,023 25,230,785
========== ========== ========== ==========
- --------------------------------------------------------------------------------------------------------------
</Table>
<Table>
<Caption>
- --------------------------------------------------------------------------------------------------------------
U.S. GOVERNMENT MORTGAGE FUND LARGE CAP EQUITY FUND
-------------------------------------------------------------------------
SIX MONTHS ENDED YEAR ENDED SIX MONTHS ENDED YEAR ENDED
APRIL 30, 2008 OCTOBER 31, 2007 APRIL 30, 2008 OCTOBER 31, 2007
- --------------------------------------------------------------------------------------------------------------
(UNAUDITED) (UNAUDITED)
Share transactions:
Sale of shares................... 1,029 12,377 27,493 6,272,726
Shares issued to stockholders in
reinvestment dividends........ 145,113 407,848 379,571 16,232
Shares repurchased............... (4,603,392) (3,606,094) (65,726) (1,254,220)
---------- ---------- --------- ----------
Net increase (decrease).......... (4,457,250) (3,185,869) 341,338 5,034,738
Shares Outstanding
Beginning of year............. 12,933,086 16,118,955 5,487,347 452,609
---------- ---------- --------- ----------
End of period................. 8,475,836 12,933,086 5,828,685 5,487,347
========== ========== ========= ==========
- --------------------------------------------------------------------------------------------------------------
</Table>
40
- --------------------------------------------------------------------------------
ASSET MANAGEMENT FUND
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
APRIL 30, 2008 (UNAUDITED)
- --------------------------------------------------------------------------------
D. At April 30, 2008, Net Assets consisted of the following:
<Table>
<Caption>
- -----------------------------------------------------------------------------------------------------------------------------
ULTRA SHORT U.S. LARGE
MONEY SHORT ULTRA U.S. INTERMEDIATE GOVERNMENT CAP
MARKET MORTGAGE SHORT GOVERNMENT MORTGAGE MORTGAGE EQUITY
FUND FUND FUND FUND FUND FUND FUND
- -----------------------------------------------------------------------------------------------------------------------------
Capital.................... $191,367,331 $1,960,070,319 $164,928,623 $129,713,413 $205,136,913 $95,592,404 $37,874,436
Undistributed net
investment income........ -- 1,178,797 83,348 25,840 72,566 27,212 1,217
Accumulated net realized
gain/(loss).............. (196,593) (102,089,875) (12,463,885) (5,473,017) (16,283,806) (9,285,227) 2,447,948
Net unrealized
appreciation/(deprecia-
tion) of investments..... -- (57,562,238) (1,189,182) (176,384) (17,617,356) (909,909) 10,045,638
------------ -------------- ------------ ------------ ------------ ----------- -----------
Net Assets................. $191,170,738 $1,801,597,003 $151,358,904 $124,089,852 $171,308,317 $85,424,480 $50,369,239
============ ============== ============ ============ ============ =========== ===========
- -----------------------------------------------------------------------------------------------------------------------------
</Table>
E. At April 30, 2008, liabilities for the Funds included:
<Table>
<Caption>
- -------------------------------------------------------------------------------------------------------------------
ULTRA SHORT U.S. LARGE
MONEY SHORT ULTRA U.S. INTERMEDIATE GOVERNMENT CAP
MARKET MORTGAGE SHORT GOVERNMENT MORTGAGE MORTGAGE EQUITY
FUND FUND FUND FUND FUND FUND FUND
- -------------------------------------------------------------------------------------------------------------------
Investment advisory fee payable...... $ 9,222 $ 382,819 $ 31,933 $ 24,750 $ 35,250 $ 17,945 $28,204
Administration fee payable........... 1,108 3,828 867 709 980 487 --
Distribution fee payable............. 18,605 229,694 19,160 14,850 21,150 10,767 6,245
Fund accounting fee payable.......... -- 9,414 1,729 1,609 2,546 2,281 545
Transfer agent fee payable........... 5,050 19,534 2,003 1,207 929 778 13,518
Chief Compliance Officer payable..... 636 15,620 1,459 865 1,678 1,180 12,083
Distributions payable................ 56,209 4,293,159 464,001 127,275 632,672 197,336 --
Capital shares redeemed payable...... -- 18,487 29,515 -- -- -- --
Other liabilities.................... 26,236 187,078 19,051 13,329 32,852 25,740 6,644
- -------------------------------------------------------------------------------------------------------------------
</Table>
F. For the period ended April 30, 2008, purchases and sales of securities, other
than short-term investments and U.S. Government securities, were as follows:
<Table>
<Caption>
- -------------------------------------------------------------------------------------------------------------------
ULTRA SHORT U.S. LARGE
SHORT ULTRA U.S. INTERMEDIATE GOVERNMENT CAP
MORTGAGE SHORT GOVERNMENT MORTGAGE MORTGAGE EQUITY
FUND FUND FUND FUND FUND FUND
- -------------------------------------------------------------------------------------------------------------------
Purchases........................... $429,633,409 $36,010,355 $34,399,996 $23,661,551 $25,775,457 $3,342,306
Sales............................... 599,445,491 59,904,588 38,742,730 70,715,476 66,743,372 5,887,740
- -------------------------------------------------------------------------------------------------------------------
</Table>
41
- --------------------------------------------------------------------------------
ASSET MANAGEMENT FUND
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
APRIL 30, 2008 (UNAUDITED)
- --------------------------------------------------------------------------------
For the period ended April 30, 2008, purchases and sales of U.S. Government
securities, other than short-term investments, were as follows:
<Table>
<Caption>
- --------------------------------------------------------------------------------------------------------------
ULTRA SHORT U.S.
SHORT ULTRA U.S. INTERMEDIATE GOVERNMENT
MORTGAGE SHORT GOVERNMENT MORTGAGE MORTGAGE
FUND FUND FUND FUND FUND
- --------------------------------------------------------------------------------------------------------------
Purchases.................................. $ 30,157,031 $ -- $34,399,996 $23,590,702 $25,775,457
Sales...................................... 467,071,551 51,261,722 38,038,506 8,471,249 61,403,815
- --------------------------------------------------------------------------------------------------------------
</Table>
G. During November 2005, the staff of the Financial Accounting Standards Board
issued their FASB Staff Position (FSB) Nos. FAS 115-1 and FAS 124-1 position
titled "The Meaning of Other-Than-Temporary Impairment and Its Application to
Certain Investments." Although the FSP is not expected to have an impact on the
Funds' financial statements, the guidance could affect the Funds' shareholders
financial reposting of their investments in the Funds (other than the Money
Market Fund). It is unclear at this time how this guidance may impact investor
decisions surrounding the purchase or retention of investments in these Funds.
H. FEDERAL INCOME TAX INFORMATION:
The tax characteristics of distributions paid to shareholders during the
fiscal years ended October 31, 2007, and 2006 were as follows:
<Table>
<Caption>
- ----------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS PAID FROM TOTAL TAXABLE TOTAL DISTRIBUTIONS
2007 ORDINARY INCOME DISTRIBUTIONS PAID*
- ----------------------------------------------------------------------------------------------------------------
Money Market Fund............................. $ 9,104,277 $ 9,104,277 $ 9,104,277
Ultra Short Mortgage Fund..................... 115,492,750 115,492,750 115,492,750
Ultra Short Fund.............................. 10,705,581 10,705,581 10,705,581
Short U.S. Government Fund.................... 7,425,876 7,425,876 7,425,876
Intermediate Mortgage Fund.................... 12,846,052 12,846,052 12,846,052
U.S. Government Mortgage Fund................. 7,469,556 7,469,556 7,469,556
- ----------------------------------------------------------------------------------------------------------------
</Table>
<Table>
<Caption>
- ----------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS PAID FROM TOTAL TAXABLE TOTAL DISTRIBUTIONS
2006 ORDINARY INCOME DISTRIBUTIONS PAID*
- ----------------------------------------------------------------------------------------------------------------
Money Market Fund............................. $ 5,237,006 $ 5,237,006 $ 5,237,006
Ultra Short Mortgage Fund..................... 108,442,120 108,442,120 108,442,120
Ultra Short Fund.............................. 10,338,059 10,338,059 10,338,059
Short U.S. Government Fund.................... 6,766,172 6,766,172 6,766,172
Intermediate Mortgage Fund.................... 12,367,938 12,367,938 12,367,938
U.S. Government Mortgage Fund................. 8,247,024 8,247,024 8,247,024
- ----------------------------------------------------------------------------------------------------------------
</Table>
* Total distributions paid differ from the Statement of Changes in Net Assets
because dividends are recognized when actually paid for federal income tax
purposes.
42
- --------------------------------------------------------------------------------
ASSET MANAGEMENT FUND
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
APRIL 30, 2008 (UNAUDITED)
- --------------------------------------------------------------------------------
The tax characteristics of distributions paid to shareholders during the
periods ended October 31, 2007, and December 31, 2006, for the Large Cap Equity
Fund were as follows:
<Table>
<Caption>
- -----------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS PAID FROM NET LONG TOTAL TAXABLE TAX RETURN TOTAL DISTRIBUTIONS
2007 ORDINARY INCOME TERM GAINS DISTRIBUTIONS OF CAPITAL PAID
- -----------------------------------------------------------------------------------------------------------------------------
Large Cap Equity Fund.......... $285,078 $-- $285,078 $-- $285,078
- -----------------------------------------------------------------------------------------------------------------------------
</Table>
<Table>
<Caption>
- -----------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS PAID FROM NET LONG TOTAL TAXABLE TAX RETURN TOTAL DISTRIBUTIONS
2006 ORDINARY INCOME TERM GAINS DISTRIBUTIONS OF CAPITAL PAID
- -----------------------------------------------------------------------------------------------------------------------------
Large Cap Equity Fund.......... $928,638 $6,088,743 $7,017,381 $3,839 $7,021,220
- -----------------------------------------------------------------------------------------------------------------------------
</Table>
At April 30, 2008, the cost, gross unrealized appreciation and gross
unrealized depreciation on securities, for federal income tax purposes, were as
follows:
<Table>
<Caption>
- ----------------------------------------------------------------------------------------------------------
NET UNREALIZED
TAX UNREALIZED TAX UNREALIZED APPRECIATION/
TAX COST APPRECIATION DEPRECIATION (DEPRECIATION)
- ----------------------------------------------------------------------------------------------------------
Money Market Fund......................... $ 191,183,251 $ -- $ -- $ --
Ultra Short Mortgage Fund................. 1,856,818,865 8,237,329 (65,799,567) (57,562,238)
Ultra Short Fund.......................... 152,150,732 914,814 (2,103,996) (1,189,182)
Short U.S. Government Fund................ 123,552,481 695,881 (872,265) (176,384)
Intermediate Mortgage Fund................ 188,872,606 966,877 (18,584,233) (17,617,356)
U.S. Government Mortgage Fund............. 86,250,098 453,943 (1,363,852) (909,909)
Large Cap Equity Fund..................... 40,200,302 13,149,861 (3,104,223) 10,045,638
- ----------------------------------------------------------------------------------------------------------
</Table>
As of October 31, 2007, the components of accumulated earnings/(deficit) on a
tax basis were as follows:
<Table>
<Caption>
- -----------------------------------------------------------------------------------------------------------------------------------
UNDISTRIBUTED
UNDISTRIBUTED LONG TERM ACCUMULATED UNREALIZED TOTAL
ORDINARY CAPITAL ACCUMULATED DISTRIBUTIONS CAPITAL AND APPRECIATION/ ACCUMULATED
INCOME GAINS EARNINGS PAYABLE OTHER LOSSES** (DEPRECIATION) EARNINGS (DEFICIT)
- -----------------------------------------------------------------------------------------------------------------------------------
Money Market Fund.... $ 753,694 $ -- $ 753,694 $ (753,694) $ (196,593) $ -- $ (196,593)
Ultra Short Mortgage
Fund............... 9,579,993 -- 9,579,993 (9,340,877) (97,782,423) (8,761,592) (106,304,899)
Ultra Short Fund..... 981,691 -- 981,691 (900,313) (9,227,289) (606,526) (9,752,437)
Short U.S. Government
Fund............... 548,665 -- 548,665 (547,720) (5,231,825) (250,234) (5,481,114)
Intermediate Mortgage
Fund............... 981,593 -- 981,593 (972,894) (13,316,373) (4,674,538) (17,982,212)
U.S. Government
Mortgage Fund...... 502,183 -- 502,183 (524,523) (10,046,793) 45,140 (10,023,993)
Large Cap Equity
Fund............... 241,840 5,389,677 5,631,517 -- -- 17,090,377 22,721,894
- -----------------------------------------------------------------------------------------------------------------------------------
</Table>
** For federal income tax purposes at October 31, 2007, the following Funds had
capital loss carry-forwards. All losses are available to offset future
realized capital gains, if any.
43
- --------------------------------------------------------------------------------
ASSET MANAGEMENT FUND
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
APRIL 30, 2008 (UNAUDITED)
- --------------------------------------------------------------------------------
At October 31, 2007, the following Funds had capital loss carry-forwards
available to offset future net capital gains through the indicated expiration
dates:
<Table>
<Caption>
- ----------------------------------------------------------------------------------------------------
FUND AMOUNT EXPIRES AMOUNT EXPIRES
- ----------------------------------------------------------------------------------------------------
Money Market Fund................................ $ 14,744 2008 $ 407 2013
Money Market Fund................................ 181,035 2011 407 2015
Ultra Short Mortgage Fund........................ 1,824,665 2008 19,172,685 2013
Ultra Short Mortgage Fund........................ 2,995,058 2010 13,969,341 2014
Ultra Short Mortgage Fund........................ 33,378,700 2011 1,808,482 2015
Ultra Short Mortgage Fund........................ 24,633,492 2012
Ultra Short Fund................................. 1,342,312 2010 1,507,357 2013
Ultra Short Fund................................. 1,849,300 2011 1,784,218 2014
Ultra Short Fund................................. 1,616,100 2012 1,128,002 2015
Short U.S. Government Fund....................... 1,193,651 2008 1,805,629 2013
Short U.S. Government Fund....................... 236,551 2011 880,563 2014
Short U.S. Government Fund....................... 757,854 2012 357,577 2015
Intermediate Mortgage Fund....................... 2,029,049 2008 1,821,864 2013
Intermediate Mortgage Fund....................... 312,894 2010 2,863,116 2014
Intermediate Mortgage Fund....................... 3,013,622 2011 1,013,863 2015
Intermediate Mortgage Fund....................... 2,261,965 2012
U.S. Government Mortgage Fund.................... 2,276,740 2008 2,721,813 2012
U.S. Government Mortgage Fund.................... 181,530 2010 3,057,928 2014
U.S. Government Mortgage Fund.................... 1,808,782 2011
- ----------------------------------------------------------------------------------------------------
</Table>
Dividends and distributions are determined in accordance with federal income
tax regulations and may differ from accounting principles generally accepted in
the United States of America. These differences are primarily due to differing
treatments for deferral of losses on wash sales and net capital losses incurred
after October 31 and within the taxable year ("Post-October losses"). To the
extent these difference are permanent, adjustments are made to the appropriate
equity accounts in the period that these differences arise.
44
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- --------------------------------------------------------------------------------
ASSET MANAGEMENT FUND
ADDITIONAL INFORMATION
APRIL 30, 2008 (UNAUDITED)
- --------------------------------------------------------------------------------
A. SECURITY ALLOCATION:
MONEY MARKET FUND
<Table>
<Caption>
- ---------------------------------------------------------------------------------------
PERCENTAGE OF
SECURITY ALLOCATION NET ASSETS
- ---------------------------------------------------------------------------------------
Repurchase Agreements.................................................. 73.9%
Government Bonds....................................................... 20.9%
Certificates of Deposit................................................ 5.2%
-----
Total.................................................................. 100.0%
=====
- ---------------------------------------------------------------------------------------
</Table>
ULTRA SHORT MORTGAGE FUND
<Table>
<Caption>
- ---------------------------------------------------------------------------------------
PERCENTAGE OF
SECURITY ALLOCATION NET ASSETS
- ---------------------------------------------------------------------------------------
Adjustable Rate Mortgage-Related Securities............................ 73.8%
Fixed Rate Mortgage-Related Securities................................. 21.0%
Repurchase Agreements.................................................. 5.1%
----
Total.................................................................. 99.9%
====
- ---------------------------------------------------------------------------------------
</Table>
ULTRA SHORT FUND
<Table>
<Caption>
- ---------------------------------------------------------------------------------------
PERCENTAGE OF
SECURITY ALLOCATION NET ASSETS
- ---------------------------------------------------------------------------------------
Adjustable Rate Mortgage-Related Securities............................ 85.3%
Fixed Rate Mortgage-Related Securities................................. 12.2%
Repurchase Agreements.................................................. 2.2%
----
Total.................................................................. 99.7%
====
- ---------------------------------------------------------------------------------------
</Table>
SHORT U.S. GOVERNMENT FUND
<Table>
<Caption>
- ---------------------------------------------------------------------------------------
PERCENTAGE OF
SECURITY ALLOCATION NET ASSETS
- ---------------------------------------------------------------------------------------
Adjustable Rate Mortgage-Related Securities............................ 32.0%
Fixed Rate Mortgage-Related Securities................................. 37.1%
Repurchase Agreements.................................................. 17.8%
U.S. Treasury Obligations.............................................. 12.5%
----
Total.................................................................. 99.4%
====
- ---------------------------------------------------------------------------------------
</Table>
46
- --------------------------------------------------------------------------------
ASSET MANAGEMENT FUND
ADDITIONAL INFORMATION (CONTINUED)
APRIL 30, 2008 (UNAUDITED)
- --------------------------------------------------------------------------------
INTERMEDIATE MORTGAGE FUND
<Table>
<Caption>
- ---------------------------------------------------------------------------------------
PERCENTAGE OF
SECURITY ALLOCATION NET ASSETS
- ---------------------------------------------------------------------------------------
Adjustable Rate Mortgage-Related Securities............................ 52.7%
Fixed Rate Mortgage-Related Securities................................. 41.5%
Repurchase Agreements.................................................. 4.1%
U.S. Treasury Obligations.............................................. 1.7%
-----
Total.................................................................. 100.0%
=====
- ---------------------------------------------------------------------------------------
</Table>
U.S. GOVERNMENT MORTGAGE FUND
<Table>
<Caption>
- ---------------------------------------------------------------------------------------
PERCENTAGE OF
SECURITY ALLOCATION NET ASSETS
- ---------------------------------------------------------------------------------------
Fixed Rate Mortgage-Related Securities................................. 66.6%
Adjustable Rate Mortgage-Related Securities............................ 31.0%
Repurchase Agreements.................................................. 2.3%
----
Total.................................................................. 99.9%
====
- ---------------------------------------------------------------------------------------
</Table>
LARGE CAP EQUITY FUND
<Table>
<Caption>
- ---------------------------------------------------------------------------------------
PERCENTAGE OF
SECURITY ALLOCATION NET ASSETS
- ---------------------------------------------------------------------------------------
Common Stocks.......................................................... 94.9%
Cash Equivalents....................................................... 4.9%
----
Total.................................................................. 99.8%
====
- ---------------------------------------------------------------------------------------
</Table>
47
- --------------------------------------------------------------------------------
ASSET MANAGEMENT FUND
ADDITIONAL INFORMATION (CONTINUED)
APRIL 30, 2008 (UNAUDITED)
- --------------------------------------------------------------------------------
B. EXPENSE COMPARISON:
As a shareholder of the Asset Management Fund, you incur two types of costs: (1)
transaction costs, including sales charges (loads) on purchases, reinvested
dividends, or other distributions; redemption fees; and exchange fees; (2)
ongoing costs, including management fees; distribution fees (12b-1 fees); and
other Fund expenses. This example is intended to help you understand your
ongoing costs (in dollars) of investing in the 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 period from November 1, 2007 through April
30, 2008.
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 "Expense 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**
11/1/07 4/30/08 11/1/07 - 4/30/08 11/1/07 - 4/30/08
- ---------------------------------------------------------------------------------------------------------------------
Money Market Fund............. Class I $1,000.00 $1,017.30 $0.75 0.15%
Class D 1,000.00 1,014.80 3.21 0.64%
Ultra Short Mortgage Fund..... 1,000.00 995.20 2.33 0.47%
Ultra Short Fund.............. 1,000.00 1,002.60 2.44 0.49%
Short U.S. Government Fund.... 1,000.00 1,019.70 2.36 0.47%
Intermediate Mortgage Fund.... 1,000.00 943.90 2.37 0.49%
U.S. Government Mortgage
Fund........................ 1,000.00 1,019.00 2.56 0.51%
Large Cap Equity Fund......... 1,000.00 921.80 4.35 0.91%
- ---------------------------------------------------------------------------------------------------------------------
</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
48
- --------------------------------------------------------------------------------
ASSET MANAGEMENT FUND
ADDITIONAL INFORMATION (CONTINUED)
APRIL 30, 2008 (UNAUDITED)
- --------------------------------------------------------------------------------
HYPOTHETICAL EXAMPLE FOR COMPARISON PURPOSES
The table below provides information about hypothetical account values and
hypothetical expenses based on each Asset Management 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.
Please note that the expenses shown in the table are meant to highlight your
ongoing costs only and do not reflect any transactional costs, such as sales
charges (loads), redemption fees, or exchange fees. Therefore, the table is
useful in comparing ongoing costs only, and will not help you determine the
relative total costs of owning different funds. In addition, if these
transactional costs were included, your costs would have been higher.
<Table>
<Caption>
- ---------------------------------------------------------------------------------------------------------------------
BEGINNING ENDING ACCOUNT EXPENSE PAID EXPENSE RATIO
ACCOUNT VALUE VALUE DURING PERIOD* DURING PERIOD**
11/1/07 4/30/08 11/1/07 - 4/30/08 11/1/07 - 4/30/08
- ---------------------------------------------------------------------------------------------------------------------
Money Market Fund............. Class I $1,000.00 $1,024.12 $0.75 0.15%
Class D 1,000.00 1,021.68 3.22 0.64%
Ultra Short Mortgage Fund..... 1,000.00 1,022.53 2.36 0.47%
Ultra Short Fund.............. 1,000.00 1,022.43 2.46 0.49%
Short U.S. Government Fund.... 1,000.00 1,022.53 2.36 0.47%
Intermediate Mortgage Fund.... 1,000.00 1,022.43 2.46 0.49%
U.S. Government Mortgage
Fund........................ 1,000.00 1,022.33 2.56 0.51%
Large Cap Equity Fund......... 1,000.00 1,020.34 4.57 0.91%
- ---------------------------------------------------------------------------------------------------------------------
</Table>
* Expenses are equal to the average account value times the Fund's annualized
expense ratio muiltiplied by the number of days in the most recent fiscal
half-year divided by the number of days in the fiscal year.
** Annualized
49
- --------------------------------------------------------------------------------
ASSET MANAGEMENT FUND
ADDITIONAL INFORMATION (CONTINUED)
APRIL 30, 2008 (UNAUDITED)
- --------------------------------------------------------------------------------
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 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.
A complete schedules 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 of 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.
50
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
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
Citi 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
One Wall Street
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.
NOT APPLICABLE.
ITEM 3. 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.
NOT APPLICABLE.
ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS.
NOT APPLICABLE.
ITEM 6. SCHEDULE OF INVESTMENTS.
6(a) NOT APPLICABLE.
6(b) NOT APPLICABLE.
(b)(1) NOT APPLICABLE.
(b)(2) NOT APPLICABLE.
(b)(3) NOT APPLICABLE.
(b)(4) NOT APPLICABLE.
(b)(5) NOT APPLICABLE.
(b)(6) NOT APPLICABLE.
ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END
MANAGEMENT INVESTMENT COMPANIES.
NOT APPLICABLE.
ITEM 8. PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES.
NOT APPLICABLE.
ITEM 9. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT
COMPANY AND AFFILIATED PURCHASERS.
NOT APPLICABLE.
ITEM 10. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.
NOT APPLICABLE.
ITEM 11. CONTROLS AND PROCEDURES.
(a) 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 RECORDED, PROCESSED, SUMMARIZED AND
REPORTED WITHIN THE TIME PERIODS SPECIFIED IN THE SECURITIES AND EXCHANGE
COMMISSION'S RULES AND FORMS.
(b) 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 12. EXHIBITS.
(a)(1) NOT APPLICABLE.
(a)(2) CERTIFICATIONS PURSUANT TO RULE 30A-2(A) ARE ATTACHED HERETO.
(a)(3) NOT APPLICABLE.
(b) 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/ Aaron Masek
--------------------------------
Aaron Masek, Treasurer
Date July 9, 2008
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/ Aaron Masek
--------------------------------
Aaron Masek, Treasurer
Date July 9, 2008
By (Signature and Title) /s/ Rodger D. Shay, Jr.
--------------------------------
Rodger D. Shay, Jr., President
Date July 3, 2008