The AAL Mutual Funds

Supplement dated November 2, 1998, to the  prospectuses  dated July 1, 1998, for
The AAL Small Cap Stock, Mid Cap Stock,  International,  Capital Growth,  Equity
Income,  Balanced, High Yield Bond, Municipal Bond, Bond and Money Market Funds,
and to the prospectus dated September 1, 1998, for The AAL U.S.  Government Zero
Coupon Target Funds, Series 2001 and Series 2006.


BOARD OF TRUSTEES

On October 30,  1998,  The AAL Mutual  Funds'  shareholders  re-elected  the six
Trustees  serving on the Board and elected Edward W. Smeds to fill a vacant seat
on the Board of Trustees effective January 1, 1998.

<TABLE>
<CAPTION>
<S>                      <C>   
Edward W. Smeds          Retired;  President,  Customer Service and Operations,  Kraft 
10 Regent  Wood  Road    Foods  from  1991 to 1994;  President,  Kraft  Foods  Canada
Northfield,  IL 60093    from 1989 to 1990; Chairman,  Board of Trustees,  Carthage
                         College.
</TABLE>


INDEPENDENT ACCOUNTANTS

On  October   30,   1998,   The  AAL   Mutual   Funds'   shareholders   ratified
PriceWaterhouseCoopers LLP as independent accountants for the Funds.

SUB-ADVISORY AGREEMENT FOR THE AAL INTERNATIONAL FUND

On October  30,  1998,  The AAL  International  Fund's  shareholders  approved a
sub-advisory  agreement with Oechsle International  Advisers LLC. On November 1,
1998,  Oechsle LLC replaced Societe  Generale Asset Management Corp.  [SoGen] as
the sub-adviser for The AAL  International  Fund. All references to SoGen as the
current sub-adviser are hereby eliminated.

Oechsle Group, LLC, a Delaware limited liability company, with principal offices
at One International Place,  Boston,  Massachusetts 02110, is the member manager
of Oechsle LLC and owns an interest of  approximately  44% in Oechsle  LLC.  The
management policies and control of Oechsle LLC, subject to certain  limitations,
are vested  exclusively  in Oechsle  Group LLC.  The  day-to-day  management  of
Oechsle LLC is exercised by the management committee of Oechsle Group LLC, which
consists of: S. Dewey  Keesler,  Jr., L. Sean Roche,  Stephen P. Langer,  Warren
Walker and Andrew S. Parlin.

Oechsle LLC makes the  day-to-day  investment  decisions for the Fund  portfolio
under AAL CMC's direction and control.  Oechsle LLC determines  which securities
to purchase and sell,  arranges the  purchases and sales and gives other help in
formulating and  implementing the investment  program for The AAL  International
Fund portfolio.

The portfolio  managers for The AAL  International  Fund are Kathleen Harris and
Sean Roche.  Ms.  Harris has been a portfolio  manager at Oechsle  since January
1995. Prior to this, she was portfolio  manager and investment  director for the
State of Wisconsin  Investment  Board and a fund manager and equity  analyst for
Northern  Trust  Company.  Mr.  Roche has been a general  partner and  portfolio
manager with Oechsle since 1986.

Pursuant  to the  sub-advisory  agreement,  the  sub-advisory  fees  paid by the
Adviser, AAL CMC, to Oechsle LLC, will be 0.40 of 1% of average daily net assets
of $50  million  or less and 0.35 of 1% of  average  daily net  assets  over $50
million.

INVESTMENT OBJECTIVE OF THE AAL SMALL CAP STOCK FUND

On October 30, 1998,  The AAL Small Cap Stock Fund's  shareholders  approved the
elimination  of  the  market  capitalization   threshold  from  the  fundamental
investment  objective of the Fund.  The Board of Trustees will now establish the
market  capitalization  threshold as a nonfundamental  investment policy for The
AAL Small Cap Stock Fund. The market capitalization  threshold for The AAL Small
Cap Stock Fund is now $1.5 billion.

INVESTMENT OBJECTIVE OF THE AAL MID CAP STOCK FUND

On October 30,  1998,  The AAL Mid Cap Stock  Fund's  shareholders  approved the
elimination  of  the  market  capitalization   threshold  from  the  fundamental
investment  objective of the Fund.  The Board of Trustees will now establish the
market  capitalization  threshold as a nonfundamental  investment policy for The
AAL Mid Cap Stock Fund. The market capitalization  threshold for The AAL Mid Cap
Stock Fund is now $6.0 billion.


C-50042I16  10/98