The AAL Mutual Funds

Semi-Annual Report

October 31, 2000

-          The AAL Mid Cap Index Fund          The AAL Large Company Index Fund         The AAL Bond Index Fund
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**TABLE OF CONTENTS**
President's Letter.............................................................2The Markets and Economy in Review..............................................3Portfolio Perspectives    The AAL Mid Cap Index Fund.................................................4    The AAL Large Company Index Fund...........................................6    The AAL Bond Index Fund....................................................8Schedule of Investments    The AAL Mid Cap Index Fund................................................10    The AAL Large Company Index Fund..........................................15    The AAL Bond Index Fund...................................................21Statement of Assets and Liabilities...........................................25Statement of Operations.......................................................26Statement of Changes in Net Assets............................................27Notes to Financial Statements.................................................28A Note on Forward Looking Statements..........................................31Financial Highlights    The AAL Mid Cap Index Fund................................................32    The AAL Large Company Index Fund..........................................33    The AAL Bond Index Fund...................................................34
**DEAR AAL MUTUAL FUND INSTITUTIONAL INVESTOR:**
We are pleased to providethe Semi-Annual Report for the passively managed AAL Mutual Fund “ClassI” shares for the six months ended October 31, 2000. We have included acommentary from each of the portfolio managers reviewing past market events andperformance. 
The AAL Mutual Fund familyoffers a broad spectrum of both passively managed and actively managed long-terminvestment options: growth, income and international holdings. Whether yourorganization wants to create a new investment program or further diversifycurrent investment assets, The AAL Mutual Fund “Class I” sharesprovide access to the investment choices to help meet your organization’sneeds. 
In addition to thepassively managed “Class I” share Index Funds, The AAL Mutual Fundfamily also offers the following investment options to Lutheran organization: 
**Equity and Balanced Funds**
The AAL Technology Stock Fund
- The AAL Aggressive Growth Fund The AAL Small Cap Stock FundThe AAL Mid Cap Stock Fund
- The AAL International Fund The AAL Capital Growth FundThe AAL Equity Income Fund
- The AAL Balanced Fund  **Fixed-Income Funds**  The AAL High Yield Bond Fund
- The AAL Municipal Bond Fund The AAL Bond FundThe AAL Money Market Fund
Please contact your local AAL representative or Lori Richardson, Vice President, Institutional Sales, at (800) 227-8602, ext. 3131with any questions about your organization's investments or this report.  You may also contact The AAL Mutual Fund Service CenterSpecialists at (800) 227-8602.  The AAL Mutual Fund Service Center Specialists are available from 7 a.m. to 8 p.m. Monday throughThursday, and 7 a.m. to 6 p.m. Friday.
Thank you for yourcontinued confidence in The AAL Mutual Funds. 
Sincerely,
/s/Robert G. Same
Robert G. Same