Semi-Annual Report
                                October 31, 1997


                            The AAL U. S. Government
                            Zero Coupon Target Funds
                              Series 2001 and 2006


             
                                   [AAL Logo]
                              THE AAL MUTUAL FUNDS

<PAGE>

BOARD OF TRUSTEES                John H. Pender--Chairman of the Board
                                 F. Gregory Campbell                        
                                 Richard L. Gady
                                 D.W. Russler
                                 Lawrence M. Woods
                                 Richard L. Gunderson
                                 Ronald G. Anderson

OFFICERS                         Ronald G. Anderson--President
                                 Robert G. Same--Vice President & Secretary
                                 Terrance P. Gallagher--Treasurer
                                 Charles D. Gariboldi, Jr.--Assistant Treasurer
                                 Joseph F. Wreschnig--Assistant Secretary

INVESTMENT ADVISER
AND DISTRIBUTOR                  AAL Capital Management Corporation
                                 222 West College Avenue
                                 Appleton, WI 54919-0007

CUSTODIAN, TRANSFER AGENT
AND DISBURSING AGENT             Firstar Trust Company
                                 615 East Michigan Street
                                 P.O. Box 2981
                                 Milwaukee, WI 53201-2981

LEGAL COUNSEL                    Quarles & Brady
                                 411 East Wisconsin Avenue
                                 Milwaukee, WI 53202

INDEPENDENT ACCOUNTANTS          Price Waterhouse LLP
                                 Suite 1500
                                 100 East Wisconsin Avenue
                                 Milwaukee, WI 53202


                                                                        
                                                                        
                                   [AAL Logo]                           
                              THE AAL MUTUAL FUNDS                      
                222 West College Avenue, Appleton, WI 54919-0007        
                                  800-553-6319                          
                       World Wide Web: http://www.aal.org               
                         e-mail address: aalcmc@aal.org                 
                                                                        


<PAGE>



                                   [AAL logo]
                              THE AAL MUTUAL FUNDS

October 31, 1997

Dear Shareholder:

     We are pleased to provide you with the updated  semi-annual  report for The
AAL U.S.  Government Zero Coupon Target Funds.  Overall,  the financial  markets
were profitable for our  shareholders  during 1997. As a result,  The AAL Mutual
Funds will be distributing the estimated capital gains of $0.07 (2001) and $0.11
(2006) on December 15, 1997, to  shareholders of record as of December 12, 1997.
In addition to the Target Funds, which are no longer open to investors,  we also
offer nine other diverse portfolios  (available in both Class A and B shares) to
help you plan for your financial future, including:

EQUITY-ORIENTED FUNDS

o    The AAL Capital Growth Fund - Investing in Large Company Stocks

o    The AAL Mid Cap Stock Fund - Investing in Mid-Sized Company Stocks

o    The AAL Small Cap Stock Fund - Investing in Small Company Stocks

o    The AAL International Fund - Investing in Foreign Securities

o    The AAL Equity Income Fund - Investing in Income-Producing Equity 
     Securities

INCOME-ORIENTED FUNDS

o    The AAL Bond Fund - Investing in Investment Grade Bonds

o    The AAL Municipal Bond Fund - Investing in Tax-Exempt Municipal Securities

o    The AAL High Yield Bond - Investing in Below Investment Grade Securities

o    The AAL Money Market Fund - Investing in Money Market Securities

To invest in these Funds, you can either use new dollars to purchase shares,  or
you can use our exchange  privilege to exchange your current  Target Fund shares
for those of another  Fund--at no additional  cost to you. For more  information
about these Funds and the  exchange  privilege,  contact  your local  Registered
Representative  or call our Mutual Fund Service Center at 800-553-6319 for  your
complimentary prospectus kit.

Thank you again for your continued  confidence in The AAL Mutual Funds.  We look
forward to serving you again in the near future.

Sincerely,

/s/ Ronald G. Anderson

Ronald G. Anderson
President


<PAGE>


The Funds Seek:  High  investment  return from U.S.  Government  securities that
provide  investors  with a reasonable  assurance that they will receive a target
dollar amount predictable at the time of investment.

                             The AAL U.S. Government
                            Zero Coupon Target Fund:
                                   Series 2001

                 SCHEDULE OF INVESTMENTS AS OF OCTOBER 31, 1997
<TABLE>
<CAPTION>
<S>                     <C>                                          <C>                 <C>                     <C> 
Principal               Long-Term                                    Yield to            Maturity                Market
Amount                  Obligations (100.0%)                         Maturity            Date                    Value
-----------------------------------------------------------------------------------------------------------------------------
                        U.S. GOVERNMENT ZERO
                        COUPON BONDS

                        Separate Trading of Registered Interest
                        and Principal of Securities
$2,156,000              (amortized cost basis $1,628,334)            5.750%               11/15/2001              $1,714,729

-----------------------------------------------------------------------------------------------------------------------------

</TABLE>



                             The AAL U.S. Government
                            Zero Coupon Target Fund:
                                   Series 2006

                 SCHEDULE OF INVESTMENTS AS OF OCTOBER 31, 1997
<TABLE>
<CAPTION>
<S>                     <C>                                          <C>                 <C>                     <C> 
Principal               Long-Term                                    Yield to            Maturity                Market
Amount                  Obligations (100.0%)                         Maturity            Date                    Value
-----------------------------------------------------------------------------------------------------------------------------
                        U.S. GOVERNMENT ZERO COUPON BONDS

                        Separate Trading of Registered Interest
                        and Principal of Securities
$2,748,000              (amortized cost basis $1,375,711)            6.020%               11/15/2006              $1,608,237
-----------------------------------------------------------------------------------------------------------------------------

</TABLE>


<PAGE>



                       STATEMENT OF ASSETS AND LIABILITIES
<TABLE>
<CAPTION>
<S>                                                                                           <C>                <C>   
                                                                                  The AAL U.S. Government Zero Coupon Target Fund
                                                                                             Series             Series
As of October 31, 1997                                                                        2001               2006
--------------------------------------------------------------------------------------------------------------------------------
Assets
Investments, at value
(Cost: $1,628,334 and $1,375,711 respectively)                                                $1,802,070         $1,539,950

Cash                                                                                          612                614
Prepaid expenses                                                                              718                614
Receivable from affiliate                                                                     ---                ---
                                                                                              ------------       ----------
      Total Assets                                                                            $1,716,059         $1,609,063
                                                                                              ==========         ==========

Liabilities
Income distributions payable                                                                  $79,723            $62,975
Accrued expenses                                                                              13,527             8,468
                                                                                              ------             ------

      Total Liabilities                                                                       93,250             71,443
                                                                                              -------            ------

Net Assets
Trust capital (beneficial interest)                                                           1,529,270          1,293,693
Accumulated undistributed net income (loss)                                                   (3,984)            (3,491)
Net unrealized appreciation on investments                                                    86,395             232,526
Accumulated net realized gain on investments                                                  11,128             14,892
                                                                                              ------             -------
      Total Net Assets                                                                        1,622,809          1,537,620
                                                                                              ---------          ---------

      Total Liabilities and Capital                                                           $1,716,059         $1,609,063
                                                                                              ==========         ==========

Shares of beneficial interest outstanding
(unlimited number of shares authorized)                                                       151,609            126,795
                                                                                              =======            =======

Net asset value per share                                                                     $10.70             $12.13
                                                                                              ======             ======

Maximum public offering price                                                                 $11.23             $12.73
                                                                                              ======             ======
</TABLE>



<PAGE>



                             STATEMENT OF OPERATIONS
<TABLE>
<CAPTION>
<S>                                                                                           <C>               <C>  
                                                                                   The AAL U.S. Government Zero Coupon Target Fund
                                                                                              Series            Series
For the Six Months Ended October 31, 1997                                                      2001              2006
-----------------------------------------------------------------------------------------------------------------------------
Investment Income
Taxable interest                                                                              58,276            $52,364
                                                                                              ------            -------

Expenses
Audit and legal fees                                                                          778               778
Custodian fees                                                                                124               75
Administrative service fees                                                                   1,323             1,323
Printing and postage expense                                                                  1,537             1,592
S.E.C. and state registration fees                                                            487               411
Transfer agent fees                                                                           727               716
Trustees fees and expenses                                                                    1,332             1,332
Other expenses                                                                                107               107
                                                                                              ---               ---
      Total Expenses                                                                          6,415             6,334
                                                                                              -----             -----
      Less reimbursement from adviser                                                         ---               ---
                                                                                              -------           -------
      Total Net Expenses                                                                      6,415             6,334
                                                                                              -----             -----

Net Investment Income                                                                         51,861            46,030
                                                                                              ------            ------

Realized and Unrealized Gain on Investments
Net realized gains on investments                                                              6,972            6,966
Decrease in unrealized appreciation on investments                                            43,539            106,679
                                                                                              ------            ------

Net Realized and Unrealized Gains on Investments                                              50,511            113,645
                                                                                              ------            ------

Net Increase in Net Assets Resulting from Operations                                          $102,372          $159,675
                                                                                              ========          ========
</TABLE>



<PAGE>



                       STATEMENT OF CHANGES IN NET ASSETS

<TABLE>
<CAPTION>
<S>                                                      <C>            <C>                  <C>           <C>   
                                                              The AAL U.S. Government Zero Coupon Target Fund
                                                              Series 2001                         Series 2006
                                                         Year           Six Months           Year          Six Months
                                                         Ended          Ended                Ended         Ended
                                                         4/30/97        10/31/97             4/30/97       10/31/97

Operations
Net investment income                                    $105,517       $51,861              $90,693       $46,030
Net realized gains on investments                         12,745         6,972                20,903        6,966
Increase (decrease) in unrealized
      appreciation on investments                        (24,902)       43,539               (16,062)      106,679
                                                         ------         ------               ------        ------

Net Increase in Net Assets
      Resulting from Operations                          93,360         102,372              95,534        159,675
                                                         -------        ------               -------       -------

Distributions to Shareholders
Dividends from net investment income                     (105,517)      (51,861)             (90,693)      (46,030)
Capital gains distributions                              (16,021)       ---                  (20,439)      ---
                                                         -------        --------             --------      --------
      Total Distributions
      to Shareholders                                    (121,538)      (51,861)             (111,132)     (46,030)
                                                         ---------      --------             ---------     --------

Trust Shares Transactions
Income dividends reinvested                              92,532         636                  88,242        7,616
Capital gains distributions reinvested                   14,602         ---                  20,277        ---
Redemption of trust shares                               (179,176)      (139,152)            (119,754)     (36,511)
                                                         --------       ---------            --------      --------

Net Increase (Decrease)
      in Trust Capital                                   (72,042)       (138,516)            11,235        (28,895)
                                                         ------         ---------            ------        --------

Net Increase (Decrease)
      in Net Assets                                      (100,220)      (88,005)             (26,833)      84,750

Net Assets Beginning of Period                           1,811,034      1,710,814            1,479,703     1,452,870
                                                         ---------      ---------            ---------     ---------

Net Assets End of Period                                 $1,710,814     $1,622,809           $1,452,870    $1,537,620
                                                         ==========     ==========           ==========    ==========
</TABLE>



<PAGE>



                          NOTES TO FINANCIAL STATEMENTS

As of October 1, 1997

(A) ORGANIZATION

The AAL Mutual Funds (the  "Trust") was  organized as a  Massachusetts  Business
Trust on March 31, 1987, and is registered as an open-end diversified management
company under the Investment Company Act of 1940. The Trust commenced operations
on July  16,1987,  and  currently  consists of The AAL Capital  Growth,  Mid Cap
Stock,  Small Cap Stock,  International,  Equity Income,  Bond,  Municipal Bond,
Money Market and U.S. Government Zero Coupon Target Funds. The eleven AAL Mutual
Funds are collectively referred to as the "Funds".

On November 14, 1990, The AAL U. S. Government Zero Coupon Target Funds,  Series
2001 and  2006,  commenced  operations.  Effective  June 1,  1993,  the Board of
Trustees  of The AAL Mutual  Funds  closed The AAL U.S.  Government  Zero Coupon
Target  Funds,  Series  2001 and 2006,  to new  shareholders  and to  additional
purchases of shares by existing shareholders.

(B) SIGNIFICANT ACCOUNTING POLICIES

The Funds' principal accounting policies are:

Valuation - Securities  traded on national  securities  exchanges  are valued at
last reported  sales prices.  All other  securities are valued at the latest bid
quotation if such quotations are readily available.  Otherwise,  such securities
are valued at a fair value as determined in good faith by the Investment Adviser
under supervision of the Board of Trustees.

Federal Income Taxes - The Funds' policy is to comply with the  requirements  of
the Internal Revenue Code which are applicable to regulated investment companies
and  to  distribute   substantially   all  of  their  taxable  income  to  their
shareholders.  The Funds accordingly paid no Federal income taxes and no Federal
income tax provision was required.

Distributions  to  Shareholders - Net  investment  income is distributed to each
shareholder  as a dividend.  Dividends  from the Target Funds are declared daily
and distributed annually.  Net realized gains from securities  transactions,  if
any, are distributed at least annually in the calendar year.

Other - For financial statement purposes,  investment security  transactions are
accounted for on trade date.  Interest income is recognized on an accrual basis.
Discount is amortized over the life of the respective  bonds.  Realized gains or
losses on sales are  determined  on a specific  cost  identification  basis.  In
accordance  with generally  accepted  accounting  principles,  the Funds met the
requirements  of  Statement  of  Position  93-2 which  requires  that  permanent
financial reporting and tax differences be reclassified to trust capital.

Use Of Estimates - The  preparation of financial  statements in conformity  with
generally accepted  accounting  principles requires management to make estimates
and assumptions  that affect the reported  amounts of assets and liabilities and
disclosure of  contingent  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.


<PAGE>



                    NOTES TO FINANCIAL STATEMENTS--Continued

As of October 31, 1997

(C)    INVESTMENT ADVISORY MANAGEMENT FEES AND TRANSACTIONS WITH
       RELATED PARTIES

The Trust has entered into an  Investment  Advisory  Agreement  with AAL Capital
Management  Corporation (the "Adviser") under which the two separate Target Fund
portfolios pay a fee for investment  advisory services.  The annual rate of fees
under the  Investment  Advisory  Agreement are  calculated  at: .50 of 1% of the
average  daily net assets of The AAL U.S.  Government  Zero Coupon Target Funds,
Series 2001 and Series 2006.  Payments under the Investment  Advisory  Agreement
were waived effective July 1, 1993. For the period May 1, 1995,  through October
31, 1995, the Adviser  entered into a sub-advisory  agreement with Duff & Phelps
Investment  Management Co. (the "Sub-Adviser").  The sub-advisory fee, which was
paid by the Adviser, was equal to: .10 of 1% of the average daily net assets for
The AAL Target Funds. Effective November 1, 1995, the agreement was terminated.

The Trust has adopted a  distribution  plan ("the Plan")  pursuant to Rule 12b-1
under the Investment Company Act of 1940. The Plan authorizes the Trust to use a
portion  of its assets to  finance  certain  sales  activities  relating  to the
distribution  of shares  to  investors.  Payments  under the Plan are equal to a
maximum of .10 of 1% of the average  daily net assets.  Payments  under the Plan
were waived effective July 1, 1993.

Trustees of the Trust not affiliated  with AAL or the Adviser  receive an annual
fee of $ 1,000 and $250 from the Target  Funds for each  meeting of the Board of
Trustees or Committee  thereof,  attended.  No remuneration has been paid by the
Trust to any of the officers or affiliated  Trustees of the Trust.  In addition,
the Trust reimbursed  unaffiliated  Trustees for reasonable expenses incurred in
relation to attendance at the meetings.

Each Fund is charged for those  expenses that are directly  attributable  to it,
such as advisory,  custodian and certain  shareholder  service fees, while other
expenses that cannot be directly  attributable to a Fund are allocated among the
Funds in proportion to the net assets of the respective Fund.

The  Adviser  reimburses  the Funds for annual  expenses in excess of the lowest
expense  limitation  imposed by the states.  In  addition  to the  reimbursement
required under the Investment  Advisory  Agreement,  the Adviser voluntarily has
reimbursed  The AAL  Target  Funds for all  expenses  in excess of 1% of average
daily net assets since inception.

AAL is the ultimate parent company for AAL Capital Management Corporation.


<PAGE>



                    NOTES TO FINANCIAL STATEMENTS--Continued

As of October 31, 1997

(D) SECURITY TRANSACTIONS

During the year ended April 30, 1997,  and  six-month  period ended  October 31,
1997,  purchases and sales of securities other than short-term  obligations were
as follows:

<TABLE>
<CAPTION>
<S>                                        <C>          <C>                        <C>          <C>   
                                           Purchases                               Sales

                                           Year         Six Months                 Year         Six Months
                                           Ended        Ended                      Ended        Ended
                                           4/30/97      10/31/97                   4/30/97      10/31/97

Target Fund 2001                           --           --                         $216,105     71,765

Target Fund 2006                           --           --                         139,852      10,727
</TABLE>


All  purchases  and sales of The AAL U.S.  Government  Target Funds were in U.S.
government obligations.

Cost of investments is substantially the same for financial  reporting  purposes
and Federal income tax purposes.

The gross unrealized  appreciation on investments at April 30, 1996, and April
30, 1997, were as follows:

<TABLE>
<CAPTION>
<S>                   <C>           <C>             <C>                     <C>           <C>             <C>
                                    4/30/97                                               10/31/97

                                                    Net Unrealized                                        Net Unrealized
                      Appreciation  (Depreciation)  Appreciation            Appreciation  (Depreciation)  Appreciation

Target Fund 2001      $47,476       (4,620)         $42,856                 $86,945       (550)           $86,395

Target Fund 2006      126,592       (745)           125,847                 232,530       (4)             232,526

</TABLE>



<PAGE>



(E) TRUST TRANSACTIONS

Transactions  in trust  shares  for the  year  ended  April  30,  1997,  and the
six-month period ended October 31, 1997, were as follows:

<TABLE>
<CAPTION>
<S>                                      <C>         <C>                         <C>          <C>  
                                         Series 2001                             Series 2006
                                         ----------------                        ----------------
                                         4/30/97     10/31/97                    4/30/97      10/31/97

Shares purchased                         --          --                          --           --

Income dividends reinvested              8,754       61                          7,626        644

Capital gains reinvested                 1,374        --                         1,734        --

Shares redeemed                          (17,084)    (13,205)                    (10,601)     (3,152)
                                         -------     --------                    --------     -------

Net increase (decrease)
     of trust shares                     (6,956)     (13,144)                    (1,241)      (2,508)
                                         =======     ========                    =======      =======

</TABLE>



<PAGE>



                                               FINANCIAL HIGHLIGHTS

                                                 Target Fund 2001
<TABLE>
<CAPTION>
<S>                                   <C>         <C>          <C>         <C>         <C>         <C>        <C>         <C>
                                      Period      Year         Year        Year        Year        Year       Year        Six Months
                                      Ended       Ended        Ended       Ended       Ended       Ended      Ended       Ended
Per Share Information                 4/30/91     4/30/92      4/30/93     4/30/94     4/30/95     4/30/96    4/30/97     10/31/97
---------------------                 -------     -------      -------     -------     -------     -------    -------     --------
                                                                                                                         
Net asset value:                                                                                                         
      Beginning of period             $10.00      $10.25       $10.61      $12.25      $10.54      $10.37     $10.55      $10.38
                                                                                                                         
                                                                                                                         
Income from Investment Operations                                                                                        
      Net investment income           0.444       0.772        0.741       0.700       0.663       0.647      0.639       0.320
                                                                                                                         
Net realized and unrealized                                                                                              
      gain (loss) on investments      0.250       0.360        1.679       (0.623)     0.000       0.335      (0.068)     0.320
                                      -----       -----        -----       -------     -----       -----      -----       -----
                                                                                                                         
Total from Investment Operations      0.694       1.132        2.420       0.077       0.663       0.982      0.571       0.643
                                      -----       -----        -----       -----       -----       -----      -----       -----
                                                                                                                         
Distributions from:                                                                                                      
      Net investment income           (0.444)     (0.772)      (0.741)     (0.700)     (0.663)     (0.761)    (0.639)     (0.320)
                                                                                                                         
      Net realized capital gains      ---         ---          (0.039)     (1.087)     (0.170)     (0.041)    (0.102)     ---
                                      ---------   ---------    -------     -------     -------     -------    -------     ------
                                                                                                                         
      Total Distributions             (0.444)     (0.772)      (0.780)     (1.787)     (0.833)     (0.802)    (0.741)     (0.320)
                                      -------     -------      -------     -------     -------     -------    -------     -------
                                                                                                                         
Net increase (decrease)                                                                                                  
      in net asset value              0.250       0.360        1.640       (1.710)     (0.170)     0.180      (0.170)     0.320
                                                                                                                         
Net asset value:                                                                                                         
      End of period                   $10.25      $10.61       $12.25      $10.54      $10.37      $10.55     $10.38      $10.70
                                                                                                                         
Total return (d)                      6.97%       10.76%       23.27%      (0.34%)     6.82%       9.23%      5.42%       8.18%
                                                                                                                         
Supplemental Data & Ratios                                                                                               
Net assets: end of period             $668,211    $1,494,818   $2,760,499  $1,824,482  $1,754,517  $1,811,034 $1,710,814  $1,622,809
                                                                                                                         
Ratio of expenses to                                                                                                     
average net assets (a)(b)             1.00%       1.00%        1.00%       1.00%       1.00%       1.00%      0.97%       0.73%
                                                                                                                         
Ratio of net investment income                                                                                           
to average net assets (a) (c)         10.21%      7.19%        6.38%       5.74%       6.50%       5.84%      6.08%       5.89%
                                                                                                                         
Portfolio turnover rate               0.00%       2.93%        2.79%       1.65%       0.00%       0.00%      0.00%       0.00%
                                                                                                                         
</TABLE>                                                                     

(a)  Calculated on an annualized basis.

(b) Computed after giving effect to Adviser's expense limitation undertaking. If
the Funds had paid all of their expenses, the ratio would have been as follows:

<TABLE>
<CAPTION>
<S>                            <C>         <C>         <C>         <C>        <C>         <C>        <C>        <C>
                               Period      Year        Year        Year       Year        Year       Year       Six Months
                               Ended       Ended       Ended       Ended      Ended       Ended      Ended      Ended
                               4/30/91     4/30/92     4/30/93     4/30/94    4/30/95     4/30/96    4/30/97    10/31/97
                                                                                                                
Series 2001                    13.27%      7.32%       4.60%       2.33%      2.00%       1.74%      0.99%      0.73%
                                                                                                                
Series 2006                    17.44%      10.36%      6.19%       6.19%      2.49%       2.07%      1.17%      0.85%
                                                                                                     

</TABLE>

<PAGE>


                              FINANCIAL HIGHLIGHTS

                                   Series 2006
<TABLE>
<CAPTION>
<S>                                 <C>        <C>          <C>          <C>          <C>         <C>         <C>         <C>      
                                    Period     Year         Year         Year         Year        Year        Year        Period
                                    Ended      Ended        Ended        Ended        Ended       Ended       Ended       Ended
Per Share Information               4/30/91    4/30/92      4/30/93      4/30/94      4/30/95     4/30/96     4/30/97     10/31/97
---------------------               -------    -------      -------      -------      -------     -------     -------     --------
                                                                                                                          
Net asset value:                                                                                                          
     Beginning of period            $10.00     $10.31       $10.42       $12.52       $10.96      $10.93      $11.33      $11.24
                                                                                                                          
Income from Investment Operations                                                                                         
     Net investment income          0.473      0.824        0.795        0.740        0.734       0.711       0.708       0.319
                                                                                                                          
Net realized and unrealized                                                                                               
     gain (loss) on investments     0.310      0.116        2.114        (0.567)      0.184       0.648       0.075       0.890
                                    -----      -----        -----        -------      -----       -----       -----       -----
                                                                                                                          
Total from Investment Operations    0.783      0.940        2.909        0.173        0.918       1.359       0.783       1.210
                                    -----      -----        -----        -----        -----       -----       -----       -----
Distributions from:                                                                                                       
     Net investment income          (0.473)    (0.824)      (0.795)      (0.740)      (0.734)     (0.865)     (0.708)     (0.319)
                                                                                                                          
     Net realized capital gains     ---        (0.006)      (0.014)      (0.993)      (0.214)     (0.094)     (0.165)     ---
                                    -------    -------      -------      -------      -------     -------     -------     ---
                                                                                                                          
     Total Distributions            (0.473)    (0.830)      (0.809)      (1.733)      (0.948)     (0.959)     (0.873)     (0.319)
                                    -------    -------      -------      -------      -------     -------     -------     -------
Net increase (decrease)                                                                                                   
     in net asset value             0.310      0.110        2.100        (1.560)      (0.030)     0.400       (0.090)     0.890
                                                                                                                          
Net asset value:                                                                                                          
     End of period                  $10.31     $10.42       $12.52       $10.96       $10.93      $11.33      $11.24      $12.13
                                    ------     ------       ------       ------       ------      ------      ------      ------
                                                                                                                          
Total return (d)                    7.86%      8.73%        28.44%       0.18%        9.05%       11.80%      6.84%       13.08%
                                                                                                                          
Supplemental Data & Ratios                                                                                                
Net assets: end of period           $451,758   $1,066,226   $1,951,566   $1,364,890   $1,400,161  $1,479,703  $1,452,870  $1,537,620
                                                                                                                          
Ratio of expenses to                                                                                                      
average net assets (a)(b)           1.00%      1.00%        1.00%        1.00%        1.00%       1.00%       1.00%       0.85%
                                                                                                                          
Ratio of net investment income                                                                                            
to average net assets (a)(c)        10.70%     7.68%        6.79%        5.86%        6.95%       5.83%       6.22%       6.18%
                                                                                                                          
Portfolio turnover rate             2.78%      2.31%        5.44%        1.05%        0.00%       0.00%       0.00%       0.00%
                                                                                                                          
</TABLE>                                                                     

(c) If the Funds had paid all of their  expenses  the ratio  would  have been as
follows:

<TABLE>
<CAPTION>
<S>                                        <C>         <C>         <C>         <C>        <C>         <C>        <C>      <C>
                                           Year        Year        Year        Year       Year        Year       Year     Six Months
                                           Ended       Ended       Ended       Ended      Ended       Ended      Ended    Ended
                                           4/30/91     4/30/92     4/30/93     4/30/94    4/30/95     4/30/96    4/30/97  10/31/97

Series 2001                                (2.06)%     0.87%       2.78%       4.41%      5.51%       5.10%      6.07%    5.89%
                                                                                                                        
Series 2006                                (5.75)%     (1.68%)     1.60%       3.72%      5.46%       4.76%      6.04%    6.18%
                                                                                                                 
</TABLE>

(d) Total returns are based on net amount invested for six months.