NOTES TO FINANCIAL STATEMENTS
OCTOBER 31, 2000
Asset Management Fund (the "Fund") is registered under the Investment Company Act of 1940, as amended
(the "1940 Act"), as a diversified open end management company. As of October 31, 2000, the Fund offered
shares in five separate portfolios, the Money Market Portfolio, the Short U.S. Government Securities Portfolio,
the Adjustable Rate Mortgage (ARM) Portfolio, the Intermediate Mortgage Securities Portfolio and the U.S.
Government Mortgage Securities Portfolio (referred to individually as a "Portfolio" and collectively as the
"Portfolios"). The Portfolios' investment objectives are to seek to achieve as high a level of current income as is
consistent with the preservation of capital, the maintenance of liquidity and the differing average maturity of
investments held by each. The Fund was reorganized as a Delaware Business Trust on July 22, 1999.
A. Significant accounting policies are as follows:
Money Market Portfolio:
Portfolio 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 Portfolio seeks to maintain net asset value
per share at $1.00.
Short U.S. Government Securities Portfolio, Adjustable Rate Mortgage (ARM) Portfolio, Intermediate Mortgage
Securities Portfolio, and U.S. Government Mortgage Securities Portfolio:
For purposes of determining the net asset value per share of each Portfolio, investments for which market
quotations are readily available will be valued at the mean between the most recent bid and asked prices, which
may be furnished by a pricing service, at prices provided directly by market makers, or using matrix pricing
methods. Portfolio securities for which market quotations are not readily available, and other assets, will be
valued at fair value using methods d