N-CSRS 1 dowjones.htm DOW JONES ISLAMIC INDEX Dow Jones Islamic Index
 



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 811-9821



Allied Asset Advisors Funds
(Exact name of registrant as specified in charter)




745 McClintock Drive, Suite 114
Burr Ridge, IL 60527

(Address of principal executive offices) (Zip code)




Bassam Osman
Allied Asset Advisors Funds
745 McClintock Drive, Suite 114
Burr Ridge, IL 60527

(Name and address of agent for service)




(877) 417-6161
Registrant's telephone number, including area code



Date of fiscal year end: May, 31, 2004



Date of reporting period: November 30, 2003

Item 1. Report to Stockholders.






 








Semi-Annual Report
November 30, 2003
(Unaudited)






Dow Jones SM
Islamic Fund
 
 
 
 
 
 
 
 
 
 
     
 
DOW JONES ISLAMIC FUND
January 20, 2004
 
Dear Shareholders:
 
Assalamu Alaikum (Greetings of Peace.)
 
Equity markets in the United States and around the world continue to rise, approaching levels not seen in over 18 months. After 3 years of stock market decline, long-term investors are finally rewarded. The positive equities performance is driven by the incipient economic recovery, persistent consumer spending and improved corporate earnings. These developments are believed to be in response to tax cuts, financial stimulus (low interest rates) and a weakening dollar.
 
The Dow Jones Islamic Fund gained 10.47% in the 6 months ending November 30, 2003 while the Dow Jones Islamic Market USA index increased by 10.50% (dividends omitted) and the Standard and Poor 500 gained 10.80%. Please see page 2 of this report for complete standardized performance information.
 
The initial stages of market (and economic) recovery usually favors small cap and lower quality companies. Large cap and higher quality companies tend to perform better in the latter stages of the recovery. If this pattern persists it will help the performance of many companies that your fund invests in. Our philosophy is to focus on high quality, well positioned and well managed companies with sound balance sheets. Such companies usually weather better any market decline and help decrease the risk and volatility of equity investing.
 
The outlook for the coming year is good, in our opinion. Stock market gains might not be as good as last year but we believe that they are likely to beat bonds and money markets. Some over stretched market sectors may experience corrections but overall the picture looks positive.
 
Finally, many of you have seen headlines concerning allegations against some other mutual fund companies. You will be delighted to know that your fund has encountered no such problems. Our purpose is to serve the Muslim community and we always put our shareholders interest first and foremost.
 
Thank you for your trust and support.
 
Respectfully,

Insert sig

Dr. Bassam Osman
President, Dow Jones Islamic Fund
 
Past performance is no guarantee of future results. The investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Please see the following semi-annual report for more complete Fund performance information and index definitions.
 
     
 

DOW JONES ISLAMIC FUND
Average Annual Total Returns
as of November 30, 2003

                                         Class K
 
 Six Months
 Twelve Months
 Since SEC
 
Ended 11/30/03
Ended 11/30/03
Effective Date****
Dow Jones Islamic Fund – Class K
10.47%
13.14%
(12.71)%
Dow Jones Islamic Market USA Index*
10.50%
13.32%
(12.58)%
Russell 3000 Growth Index**
12.79%
16.87%
(16.87)%
Standard and Poors 500 Index***
10.80%
15.13%
(7.50)%
NASDAQ Composite Index***
23.14%
33.34%
(18.34)%
    

Past performance is no guarantee of future results. Investment return and principal value will fluctuate so that an investor's shares, when redeemed, may be worth more or less than their original cost. Performance reflects fee waivers in effect. In the absence of fee waivers, the total return would have been reduced.

As of the period ended November 30, 2003, The Dow Jones Islamic Fund has chosen to use the Russell 3000 Growth Index as the comparison benchmark.

*    The Dow Jones Islamic Market USA Index is a diversified compilation of U.S. equity securities considered by the Shari'ah Supervisory Board of Dow Jones to be in compliance with Islamic principles. The index is constructed from stocks in the Dow Jones Indexes (DJGI) family. Dow Jones believes that these stocks are accessible to investors and are well traded. The DJGI methodology removes issues that are not suitable for global investing. The performance of the Dow Jones Islamic Market USA Index does not include the reinvestment of dividends.

**  The Russell 3000 Growth Index takes the largest 3,000 U.S. companies based on market capitalization and measures the performance of those with higher price-to-book
         ratios and higher forecasted growth values.

*** The S&P 500 and NASDAQ Composite Indices are unmanaged indices commonly used to measure performance of U.S. stocks. You cannot invest directly in an index.

      **** The investment return for Class K was calculated using the date the Fund became effective with the SEC, June 30, 2000.
 
     
 
DOW JONES ISLAMIC FUND
SCHEDULE OF INVESTMENTS
November 30, 2003 (Unaudited)

Number of
 
 
 
Fair
Shares
 
 
 
Value
COMMON STOCK - 99.3%
 
 
 
 
ADVANCED INDUSTRIAL
 
 
 
 
EQUIPMENT - 1.1%
 
 
1,800
 
Agilent Technologies, Inc.*
$
50,904
500
 
Cognex Corporation*
 
13,735
500
 
Danaher Corporation
 
41,600
500
 
Diebold, Inc.
 
26,525
500
 
National Instruments Corporation
 
22,640
500
 
Pall Corporation
 
12,810
500
 
Roper Industries, Inc.
 
25,070
750
 
Symbol Technologies, Inc.
 
10,463
500
 
Waters Corporation*
 
15,990
 
 
 
 
 219,737
 
 
ADVANCED MEDICAL
 
 
 
 
DEVICES - 2.7%
 
 
900
 
Biomet, Inc.
 
32,202
500
 
DENTSPLY International Inc.
 
22,515
700
 
Guidant Corporation
 
39,739
4,400
 
Medtronic, Inc.
 
198,880
500
 
Respironics, Inc.*
 
22,750
1,000
 
St. Jude Medical, Inc.*
 
63,340
1,000
 
Stryker Corporation
 
81,000
1,000
 
Zimmer Holdings, Inc.*
 
65,920
 
 
 
 
 526,346
 
 
AEROSPACE - 1.0%
 
 
2,200
 
United Technologies Corporation
 
188,540
 
 
AIR FREIGHT - 1.1%
 
 
500
 
Expeditors International
 
 
 
 
of Washington, Inc.
 
19,550
1,100
 
FedEx Corporation
 
79,970
1,500
 
United Parcel Service, Inc. Class B
 
109,155
 
 
 
 
 208,675
 
 
AIRLINES - 0.3%
 
 
3,000
 
Southwest Airlines Co.
 
53,940
 
 
AUTO PARTS - 0.3%
 
 
500
 
Gentex Corporation
 
21,015
1,100
 
Genuine Parts Company
 
34,628
 
 
 
 
 55,643
       

 
     
 

Number of
 
 
Fair
Shares
 
 
Value
 
 
BIOTECHNOLOGY - 3.5%
 
 
4,552
 
Amgen, Inc.*
$
262,286
1,100
 
Applera Corporation - Applied Biosystems Group
 
23,617
1,075
 
Biogen, Inc.*
 
41,044
500
 
Celgene Corporation*
 
22,865
500
 
Chiron Corporation*
 
26,850
1,000
 
Genentech, Inc.*
 
84,300
1,000
 
Genzyme Corporation*
 
46,650
1,000
 
Gilead Sciences, Inc.*
 
58,680
500
 
Immunomedics, Inc.*
 
1,930
1,000
 
Laboratory Corporation of America Holdings*
 
36,120
1,000
 
MedImmune, Inc.*
 
23,790
852
 
Monsanto Co.
 
23,106
500
 
Myriad Genetics, Inc.*
 
5,890
500
 
Techne Corporation*
 
17,970
500
 
XOMA, Ltd.* f
 
3,455
 
 
 
 
 678,553
 
 
BUILDING MATERIALS - 0.2%
 
 
500
 
The Sherwin-Williams Company
 
16,215
500
 
Vulcan Materials Company
 
22,235
 
 
 
 
 38,450
 
 
CHEMICALS COMMODITY - 0.9%
 
 
4,300
 
E. I. du Pont de Nemours
 
 
 
 
and Company
 
178,278
       
  
 
 
CHEMICALS SPECIALTY - 1.1%
 
 
1,000
 
Air Products and Chemicals, Inc.
 
47,940
500
 
Avery Dennison Corporation
 
27,540
500
 
Cabot Microelectronics Corp.*
 
26,625
1,000
 
Ecolab, Inc.
 
26,220
1,000
 
Engelhard Corporation
 
29,820
500
 
Sigma-Aldrich Corporation
 
26,785
500
 
WD-40 Company
 
17,900
 
 
 
 
 202,830
 
 
CLOTHING & FABRICS - 0.3%
 
 
1,000
 
Liz Claiborne, Inc.
 
35,010
500
 
V.F. Corp.
 
20,635
 
 
 
 
 55,645
       

See notes to the financial statements
 
     
 

DOW JONES ISLAMIC FUND
SCHEDULE OF INVESTMENTS (Continued)
November 30, 2003 (Unaudited)

Number of
 
 
 
Fair
Shares
 
 
 
Value
COMMON STOCK (Continued)
 
 
 
 
COMMUNICATIONS
 
 
 
 
TECHNOLOGY - 4.5%
 
 
2,200
 
ADC Telecommunications, Inc.*
$
5,390
500
 
Andrew Corporation*
 
5,885
28,000
 
Cisco Systems, Inc.*
 
635,600
500
 
Echelon Corporation*
 
6,025
500
 
Foundry Networks, Inc.*
 
13,105
500
 
Plantronics, Inc.*
 
15,320
500
 
Polycom, Inc.*
 
9,895
3,300
 
QUALCOMM, Inc.
 
147,015
1,000
 
Rockwell Collins, Inc.
 
26,890
500
 
Tekelec*
 
8,350
 
 
 
 
 873,475
 
 
COMPUTERS - 7.4%
 
 
500
 
Brocade Communications Systems, Inc.*
 
3,045
8,900
 
Dell Computer Corporation*
 
307,673
8,500
 
EMC Corporation*
 
116,790
500
 
Emulex Corporation*
 
14,750
10,321
 
Hewlett-Packard Company
 
223,862
6,500
 
International Business Machines Corporation
 
588,510
500
 
Lexmark International, Inc.*
 
38,700
500
 
NCR Corporation*
 
17,450
1,100
 
Network Appliance, Inc.*
 
25,432
500
 
Qlogic Corporation*
 
28,445
12,600
 
Sun Microsystems, Inc.*
 
53,676
 
 
 
 
 1,418,333
 
 
CONSUMER SERVICES - 0.9%
 
 
750
 
Apollo Group, Inc.*
 
52,020
1,000
 
Career Education Corp.*
 
51,130
500
 
DeVry, Inc.*
 
13,695
1,000
 
eBay, Inc.*
 
55,890
 
 
 
 
 172,735
 
 
CONTAINERS & PACKAGING - 0.1%
 
 
500
 
AptarGroup, Inc.
 
17,455
 
 
 
 
 
 
 
COSMETICS - 1.5%
 
 
800
 
Avon Products, Inc.
 
54,800
2,000
 
Colgate-Palmolive Company
 
 105,000
       

Number of
 
 
 
Fair
Shares
 
 
 
Value
 
 
COSMETICS (Continued)
 
 
4,000
 
The Gillette Company
$
134,920
 
 
 
 
 294,720
 
 
DIVERSIFIED TECHNOLOGY
 
 
 
 
SERVICES - 0.3%
 
 
500
 
Affiliated Computer Services, Inc.*
 
25,070
500
 
CIBER, Inc.*
 
4,555
500
 
Dendrite International, Inc.*
 
8,550
500
 
Keane, Inc.*
 
7,050
1,100
 
Unisys Corporation*
 
17,952
 
 
 
 
 63,177
 
 
ELECTRIC COMPONENTS
 
 
 
 
& EQUIPMENT - 0.5%
 
 
700
 
American Power Conversion Corporation
 
15,372
500
 
AVX Corporation
 
7,550
500
 
Integrated Circuit Systems, Inc.*
 
14,875
500
 
Jabil Circuit, Inc.*
 
13,755
500
 
KEMET Corporation*
 
6,600
500
 
Molex, Inc.
 
16,045
500
 
Molex, Inc. Class A
 
13,560
500
 
Plexus Corp.*
 
8,875
 
 
 
 
 96,632
 
 
FIXED LINE
 
 
 
 
COMMUNICATIONS - 1.6%
 
 
13,200
 
SBC Communications, Inc.
 
307,296
 
 
 
 
 
 
 
FOOD PRODUCTS - 0.4%
 
 
500
 
Hershey Foods Corporation
 
38,850
500
 
Lancaster Colony Corporation
 
20,875
515
 
Tootsie Roll Industries, Inc.
 
18,102
 
 
 
 
 77,827
 
 
FOOTWEAR - 0.2%
 
 
600
 
NIKE, Inc. Class B
 
40,350
 
 
 
 
 
 
 
FURNISHINGS & APPLIANCES - 0.5%
 
 
500
 
Ethan Allen Interiors, Inc.
 
20,350
300
 
Herman Miller, Inc.
 
7,815
500
 
HON INDUSTRIES Inc.
 
21,245
700
 
Leggett & Platt, Inc.
 
14,238
500
 
Mohawk Industries, Inc.*
 
36,040
 
 
 
 
 99,688
       
 
See notes to the financial statements.
 
 
     
 

DOW JONES ISLAMIC FUND
SCHEDULE OF INVESTMENTS (Continued)
November 30, 2003 (Unaudited)

Number of
 
 
 
Fair
Shares
 
 
 
Value
COMMON STOCK (Continued)
 
 
 
 
HEALTHCARE PROVIDERS - 1.9%
 
 
1,000
 
First Health Group Corp.*
$
20,500
1,100
 
Health Management Associates, Inc.
 
28,270
700
 
HCA Inc.
 
29,337
500
 
LifePoint Hospitals, Inc.*
 
14,955
1,000
 
Lincare Holdings, Inc.*
 
29,810
1,025
 
Medco Health Solutions, Inc.*
 
37,341
500
 
Orthodontic Centers of America, Inc.*
 
3,545
500
 
Pediatrix Medical Group, Inc.*
 
26,830
500
 
Renal Care Group, Inc.*
 
20,180
1,900
 
Tenet Healthcare Corp.*
 
27,759
2,400
 
UnitedHealth Group, Inc.
 
129,360
 
 
 
 
 367,887
 
 
HEAVY CONSTRUCTION - 0.2%
 
 
500
 
Dycom Industries, Inc.*
 
12,675
500
 
Fluor Corporation
 
18,330
 
 
 
 
 31,005
 
 
HOUSEHOLD PRODUCTS
 
 
 
 
DURABLE - 0.1%
 
 
300
 
The Stanley Works
 
9,813
       
  
 
 
HOUSEHOLD PRODUCTS
 
 
 
 
NONDURABLE - 3.4%
 
 
500
 
Blyth, Inc.
 
15,025
500
 
The Clorox Company
 
23,460
2,000
 
Kimberly-Clark Corporation
 
108,440
5,300
 
The Procter & Gamble Company
 
510,072
 
 
 
 
 656,997
 
 
INDUSTRIAL - DIVERSIFIED - 3.2%
 
 
700
 
Dover Corporation
 
26,873
1,600
 
Emerson Electric Company
 
97,664
3,500
 
Honeywell International Inc.
 
103,915
1,100
 
Illinois Tool Works, Inc.
 
85,910
500
 
Kaydon Corporation
 
12,210
500
 
Parker-Hannifin Corporation
 
27,495
700
 
Rockwell Automation, Inc.
 
23,275
3,000
 
3M Co.
 
237,120
 
 
 
 
 614,462
       

 
     
 

Number of
 
 
 
Fair
Shares
 
 
 
Value
 
 
INDUSTRIAL SERVICES - 2.8%
 
 
2,000
 
Automatic Data Processing, Inc.
$
76,460
500
 
Catalina Marketing Corporation*
 
9,265
500
 
Cintas Corporation
 
23,345
500
 
Convergys Corporation*
 
7,670
750
 
Copart, Inc.*
 
9,000
500
 
The Corporate Executive Board Company*
 
24,300
500
 
Deluxe Corporation
 
20,600
500
 
DST Systems, Inc.*
 
18,660
500
 
Fair Isaac Corporation
 
27,580
3,000
 
First Data Corporation
 
113,550
500
 
Getty Images, Inc.*
 
21,700
1,100
 
IMS Health, Inc.
 
25,333
500
 
MedQuist, Inc.*
 
7,695
1,000
 
Moody’s Corporation
 
57,280
1,200
 
Paychex, Inc.
 
46,128
500
 
Robert Half International, Inc.*
 
11,130
500
 
Sabre Holdings Corporation
 
10,425
500
 
W.W. Grainger, Inc.
 
23,130
 
 
 
 
533,251
 
 
INTERNET SERVICES - 0.1%
 
  
1,000
 
WebMD Corporation*
 
9,170
       
   
 
 
MEDICAL SUPPLIES - 2.6%
 
 
5,600
 
Abbott Laboratories
 
247,520
1,800
 
Baxter International, Inc.
 
50,076
1,000
 
Becton, Dickinson and Company
 
40,030
2,000
 
Boston Scientific Corporation*
 
71,780
500
 
C.R. Bard, Inc.
 
37,800
500
 
Cytyc Corporation*
 
6,470
500
 
Patterson Dental Company*
 
34,050
500
 
ResMed Inc.*
 
19,500
 
 
 
 
507,226
 
 
MULTIMEDIA - 0.2%
 
  
500
 
The E.W. Scripps Company
 
46,030
       
  
 
 
OIL COMPANIES - 7.2%
 
 
4,440
 
ChevronTexaco Corporation
 
333,444
700
 
EOG Resources, Inc.
 
29,358
26,200
 
Exxon Mobil Corporation
 
947,654
1,000
 
Murphy Oil Corporation
 
59,930
500
 
Tom Brown, Inc.*
 
13,980
 
 
 
 
 1,384,366
       

See notes to the financial statements.
 
     
 

DOW JONES ISLAMIC FUND
SCHEDULE OF INVESTMENTS (Continued)
November 30, 2003 (Unaudited)

Number of
 
 
 
Fair
Shares
 
 
 
Value
COMMON STOCK (Continued)
 
 
 
 
OIL DRILLING EQUIPMENT
 
 
 
 
& SERVICES - 1.7%
 
 
1,500
 
Baker Hughes Incorporated
$
43,290
1,000
 
BJ Services Company*
 
31,890
500
 
Cooper Cameron Corporation*
 
21,705
500
 
ENSCO International, Inc.
 
12,650
500
 
GlobalSanteFe Corporation
 
10,750
1,600
 
Halliburton Company
 
37,360
500
 
Nabors Industries, Inc.* f
 
18,560
500
 
Noble Corporation*
 
17,290
500
 
Patterson-UTI Energy, Inc.*
 
14,365
500
 
Rowan Companies, Inc.*
 
10,585
2,000
 
Schlumberger Limited f
 
93,840
500
 
Tidewater Inc.
 
13,805
 
 
 
 
 326,090
 
 
PHARMACEUTICALS - 14.9%
 
 
500
 
Allergan, Inc.
 
37,365
500
 
Andrx Group*
 
10,980
6,200
 
Bristol-Myers Squibb Company
 
163,370
4,000
 
Eli Lilly and Company
 
274,240
1,000
 
Forest Laboratories, Inc.*
 
54,640
11,784
 
Johnson & Johnson
 
580,833
666
 
King Pharmaceuticals, Inc.*
 
8,598
8,500
 
Merck & Co., Inc.
 
345,100
1,350
 
Mylan Laboratories, Inc.
 
34,182
500
 
Noven Pharmaceuticals, Inc.*
 
6,865
31,000
 
Pfizer, Inc.
 
1,040,050
5,400
 
Schering-Plough Corporation
 
86,670
500
 
SICOR, Inc.*
 
13,820
5,300
 
Wyeth
 
208,820
 
 
 
 
 2,865,533
 
 
PRECIOUS METALS - 0.3%
 
 
1,000
 
Meridian Gold Inc.* f
 
14,740
1,000
 
Newmont Mining Corporation
 
48,140
 
 
 
 
62,880
 
 
PUBLISHING - 0.3%
 
 
500
 
John Wiley & Sons, Inc.
 
13,000
700
 
The McGraw-Hill Companies, Inc.
 
47,950
 
 
 
 
 60,950
       

 
     
 

Number of
 
 
 
Fair
Shares
 
 
 
Value
 
 
REAL ESTATE - 0.1%
 
 
500
 
Public Storage, Inc.
$
22,200
       
  
 
 
RECREATIONAL PRODUCTS
 
 
 
 
& SERVICES - 0.7%
 
 
500
 
Callaway Golf Company
 
8,215
1,200
 
Harley-Davidson, Inc.
 
56,604
500
 
Polaris Industries Inc.
 
43,085
500
 
Winnebago Industries, Inc.
 
27,635
 
 
 
 
 135,539
 
 
RETAILERS APPAREL - 1.3%
 
 
1,800
 
The Gap, Inc.
 
38,700
1,200
 
Kohl’s Corporation*
 
57,984
1,600
 
The Limited, Inc.
 
28,672
500
 
The Men’s Wearhouse, Inc.*
 
15,385
1,000
 
Ross Stores, Inc.
 
54,780
2,200
 
The TJX Companies, Inc.
 
49,698
 
 
 
 
 245,219
 
 
RETAILERS BROADLINE - 0.3%
 
 
1,000
 
Dollar General Corporation
 
21,120
1,000
 
Family Dollar Stores, Inc.
 
38,580
 
 
 
 
 59,700
 
 
RETAILERS DRUG - BASED - 2.0%
 
 
1,650
 
Cardinal Health, Inc.
 
100,881
1,400
 
CVS Corporation
 
52,444
1,100
 
McKesson, Inc.
 
32,120
500
 
Priority Healthcare Corporation Class B*
 
11,465
5,000
 
Walgreen Company
 
184,050
 
 
 
 
 380,960
 
 
RETAILERS - SPECIALTY - 4.1%
 
 
500
 
99 Cents Only Stores*
 
13,855
500
 
AutoZone, Inc.*
 
47,830
1,000
 
Bed Bath & Beyond, Inc.*
 
42,240
500
 
Big Lots, Inc.*
 
7,330
500
 
Dollar Tree Stores, Inc.*
 
15,860
9,200
 
The Home Depot, Inc.
 
338,192
2,800
 
Lowe’s Companies, Inc.
 
163,240
500
 
Michaels Stores, Inc.
 
23,625
1,200
 
Office Depot, Inc.*
 
19,020
700
 
RadioShack Corporation
 
 21,805
       

See notes to the financial statements.
 
     
 

DOW JONES ISLAMIC FUND
SCHEDULE OF INVESTMENTS (Continued)
November 30, 2003 (Unaudited)

Number of
 
 
 
Fair
Shares
 
 
 
Value
COMMON STOCK (Continued)
 
 
 
 
RETAILERS - SPECIALTY (Continued)
 
 
1,700
 
Staples, Inc.*
$
46,087
500
 
Tiffany & Company
 
22,675
1,000
 
Williams-Sonoma, Inc.*
 
36,040
 
 
 
 
 797,799
 
 
SCHOOLS - 0.3%
 
 
1,000
 
Corinthian Colleges, Inc.*
 
63,930
       
  
 
 
SEMICONDUCTORS - 9.4%
 
 
1,300
 
Altera Corporation*
 
32,968
1,000
 
Analog Devices, Inc.
 
49,750
5,800
 
Applied Materials, Inc.*
 
140,592
600
 
Axcelis Technologies, Inc.*
 
6,870
500
 
Broadcom Corporation*
 
18,195
500
 
Credence Systems Corporation*
 
6,480
500
 
Cree, Inc.*
 
9,180
25,000
 
Intel Corporation
 
838,500
500
 
InterDigital Communications Corporation*
 
10,240
1,000
 
Intersil Corporation
 
26,420
600
 
KLA-Tencor Corporation*
 
35,118
1,000
 
Linear Technology Corporation
 
43,190
500
 
Marvell Technology Group Ltd.* f
 
19,745
2,000
 
Maxim Integrated Products, Inc.
 
104,340
500
 
Micrel, Incorporated*
 
8,550
750
 
Microchip Technology, Inc.
 
25,860
1,900
 
Micron Technology, Inc.*
 
24,719
1,000
 
National Semiconductor Corporation*
 
44,720
500
 
PMC-Sierra, Inc.*
 
10,180
500
 
Rambus, Inc.*
 
15,000
500
 
RF Micro Devices, Inc.*
 
5,855
500
 
Silicon Laboratories Inc.*
 
24,535
500
 
Skyworks Solutions, Inc.*
 
4,389
500
 
Teradyne, Inc.*
 
12,585
7,000
 
Texas Instruments, Inc.
 
208,320
2,000
 
Xilinx, Inc.*
 
75,180
 
 
 
 
 1,801,481
 
 
SOFT DRINKS - 3.8%
 
 
8,500
 
The Coca-Cola Company
 
395,250
6,900
 
PepsiCo, Inc.
 
332,028
 
 
 
 
 727,278
       

 
     
 

Number of
 
 
 
Fair
Shares
 
 
 
Value
 
 
SOFTWARE - 7.4%
 
 
1,000
 
Ariba, Inc.*
$
3,160
900
 
BMC Software, Inc.*
 
14,967
1,100
 
Cadence Design Systems, Inc.*
 
18,403
500
 
Cerner Corporation*
 
22,315
600
 
Citrix Systems, Inc.*
 
14,436
700
 
Intuit Inc.*
 
35,196
500
 
Macromedia, Inc.*
 
10,260
500
 
Mentor Graphics Corporation*
 
7,325
500
 
Mercury Interactive Corporation*
 
23,330
35,600
 
Microsoft Corporation
 
915,276
16,100
 
Oracle Corporation*
 
193,522
1,000
 
Parametric Technology Corporation*
 
3,390
215
 
PeopleSoft, Inc.*
 
4,541
500
 
Quest Software, Inc.*
 
7,450
500
 
Retek Inc.*
 
5,190
1,000
 
SunGard Data Systems, Inc.*
 
27,020
1,000
 
Symantec Corporation*
 
32,830
1,000
 
Synopsys, Inc.*
 
29,960
600
 
VeriSign, Inc.*
 
9,726
1,300
 
VERITAS Software Corporation*
 
49,426
 
 
 
 
 1,427,723
 
 
STEEL - 0.1%
 
 
500
 
Nucor Corporation
 
28,055
 
 
 
 
 
 
 
TOYS - 0.4%
 
 
1,000
 
Electronic Arts, Inc.*
 
44,230
1,500
 
Mattel, Inc.
 
30,360
 
 
 
 
 74,590
 
 
TRANSPORTATION - 0.1%
 
 
832
 
Werner Enterprises, Inc.
 
 15,068
 
 
 
 
 
 
 
Total Common Stock
 
 
 
 
(Cost $23,215,856)
 
19,123,527
 
 
Assets, Less Other
 
 
 
 
Liabilities - 0.7%
 
142,121
 
 
Total Net Assets 100.0%
$
 19,265,648
       
* Non-income producing
f U.S. security of foreign company
See notes to the financial statements.
 
 
     
 

DOW JONES ISLAMIC FUND
STATEMENT OF ASSETS AND LIABILITIES
November 30, 2003 (Unaudited)

Assets
 
 
Investments in securities, at fair value (cost: $23,215,856)
$
19,123,527
Cash
 
152,213
Dividends receivable
 
32,134
Other assets
 
18,360
Total Assets
 
 19,326,234
 
 
 
Liabilities
 
 
Payable to Advisor
 
3,793
Accrued expenses
 
56,793
Total Liabilities
 
 60,586
Net Assets
$
 19,265,648
 
 
  
 
 
 
 
 
 
Net Assets Consist of:
 
 
Paid in capital
$
27,574,952
Undistributed net investment income
 
22,230
Accumulated net realized loss on investments
 
(4,239,205)
Unrealized depreciation on investments
 
(4,092,329)
Net Assets
$
 19,265,648
 
 
 
 
 
 
 
 
 
Class K:
 
 
Net assets
$
19,265,648
Shares of capital stock outstanding; unlimited number of shares authorized, no par value
 
3,045,557
Net asset value, redemption and offering price per share
$
 6.33
 
 
 
 
See notes to the financial statements.
 
 
     
 

DOW JONES ISLAMIC FUND
STATEMENT OF OPERATIONS
(Unaudited)

 
 
Six Months Ended
 
 
November 30, 2003
Investment income:
 
 
Dividends
$
120,319
Expenses:
 
 
Investment advisory fees
 
69,722
Shareholder servicing and accounting fees
 
51,303
Administration fees
 
22,088
License fees.
 
12,860
Professional fees
 
16,241
Registration fees
 
13,326
Custody fees.
 
1,539
Reports to shareholders
 
3,056
Miscellaneous expenses
 
1,252
Total expenses
 
 191,387
Less fees reimbursed by Advisor
 
(60,082)
Net expenses
 
 131,305
Net investment loss
 
 (10,986)
Net realized and unrealized gain (loss):
 
 
Net realized loss on investments
 
(96,182)
Net change in unrealized appreciation (depreciation) on investments
 
1,913,530
Net realized and unrealized gain on investments
 
 1,817,348
Net increase in net assets from operations
 
 
 
$
1,806,362
   
 
 
See notes to the financial statements.
 
 
     
 

DOW JONES ISLAMIC FUND
STATEMENTS OF CHANGES IN NET ASSETS

 
Six Months Ended
 
 
 
 
November 30, 2003
 
 
Year Ended
 
(Unaudited)
 
 
May 31, 2003
Operations
 
 
 
Net investment income (loss)
$
(10,986)
 
$
61,332
Net realized loss on investments
 
(96,182)
 
 
(2,374,832)
Change in unrealized appreciation (depreciation) on investments
 
1,913,530
 
 
671,344
Net increase (decrease) in net assets from operations
 1,806,362
 
 (1,642,156)
 
 
 
 
Capital share transactions (Note 4)
 
 
 
 
 
Shares sold
 
693,741
 
 
936,099
Shares reinvested
 
—
 
 
5,708
Shares redeemed
 
(1,371,372)
 
 
(1,140,272)
Decrease in net assets from capital share transactions
 (677,631)
 
 (198,465)
 
 
 
 
Distributions to shareholders
 
 
 
 
 
From net investment income
 
—
 
 
(43,387)
Total distributions to shareholders
—
 
 (43,387)
 
 
 
 
Total increase (decrease) in net assets
 
1,128,731
 
 
(1,884,008)
 
 
 
 
 
 
 
 
 
 
 
 
Net assets at beginning of year
 
18,136,917
 
 
20,020,925
Net assets at end of period (including accumulated
 
 
 
undistributed
 
 
 
 
 
net investment income of $22,230 and $33,216, respectively)
$
19,265,648
 
$
18,136,917
 
 
 
See notes to the financial statements.
 
 
     
 

DOW JONES ISLAMIC FUND
FINANCIAL HIGHLIGHTS
Selected data for each share of capital stock outstanding


 
Class K
 
 
 
 
 
 
 
 
 
 
 
For the Period
 
 
 
Six Months
 
 
 
 
 
 
 
 
June 29,
 
 
 
Ended
November
 
 
Year
Ended
 
 
Year
Ended
 
 
2000 (1) to
 
 
 
30, 2003
 
 
May 31,
 
 
May 31,
 
 
May 31,
 
 
 
(Unaudited)
 
 
2003 (5)
 
 
2002 (5)
 
 
2001
 
Net asset value
 
 
 
 
 
 
 
 
 
 
 
 
Beginning of period
$
5.73
 
$
6.26
 
$
7.58
 
$
10.00
 
Operations
 
 
 
 
 
 
 
 
 
 
 
 
Net investment income
 
0.00
 
 
0.02
 
 
0.01
 
 
0.01
 
(loss)
 
 
 
 
 
 
 
 
 
 
 
 
Net realized and unrealized
 
 
 
 
 
 
 
 
 
 
 
 
gain (loss) on investments
 
0.60
 
 
(0.54
)
 
(1.32
)
 
(2.43
)
Total from operations
 
 0.60
 
 
 (0.52
)
 
 (1.31
)
 
 (2.42
)
Distributions to shareholders
 
 
 
 
 
 
 
 
 
 
 
 
From net investment income
 
0.00
 
 
0.01
 
 
(0.01
)
 
0.00
 
Total distributions to
 
 0.00
 
 
 0.01
 
 
 (0.01
)
 
 0.00
 
shareholders
 
 
 
 
 
 
 
 
 
 
 
 
Net asset value
 
 
 
 
 
 
 
 
 
 
 
 
End of period
 
$6.33
 
 
$5.73
 
 
$6.26
 
 
$7.58
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total investment return
 
10.47
% (2)
 
(8.22
)%
 
(17.34
)%
 
(25.02
)% (2)(4)
 
 
 
 
 
 
 
 
 
 
 
 
 
Net assets, end of period (in thousands)
 
$19,266
 
 
$18,070
 
 
$20,020
 
 
$20,497
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Ratios
 
 
 
 
 
 
 
 
 
 
 
 
Expenses to average net assets
 
 
 
 
 
 
 
 
 
 
 
 
Before expense reimbursement
 
2.06
% (3)
 
2.25
%
 
2.06
%
 
1.97
% (3)
After expense reimbursement
 
1.41
% (3)
 
0.95
%
 
0.90
%
 
0.90
% (3)
Net investment income (loss) to average net assets
 
 
 
 
 
 
 
 
 
 
 
 
Before expense reimbursement
 
(0.76
)% (3)
 
(0.94
)%
 
(1.07
)%
 
(0.99
)% (3)
After expense reimbursement
 
(0.11
)%(3)
 
0.36
%
 
0.09
%
 
(0.08
)% (3)
Portfolio turnover rate (5)
 
0.0
%
 
5.1
%
 
13.7
%
 
20.0
% (2)
 
(1)    Commencement of operations.
(2)    Not annualized.
(3)    Annualized.
(4)    The investment return for Class K was calculated using the date the Fund became effective with the SEC, June 30, 2000.
(5)    Net investment income (loss) per share is based on daily average shares outstanding.
(6)    Calculated on the basis of the Fund as a whole without distinguishing between classes of shares issued.

See notes to the financial statements.
 
     
 

DOW JONES ISLAMIC FUND
FINANCIAL HIGHLIGHTS (Continued)
Selected data for each share of capital stock outstanding
 

 
Class M
 
 
For the Period
 
 
 
 
 
 
 
 
For the Period
 
 
 
June 1,
2003 to
 
 
Year
 
 
Year
 
 
February 15,
 
 
 
October 30,
 
 
Ended
 
 
Ended
 
 
2001 (1)
 
 
 
2003 (4)(6)
 
 
May 31,
 
 
May 31,
 
 
to May 31,
 
 
 
(Unaudited)
 
 
2003 (4)
 
 
2002 (4)
 
 
2001
 
Net asset value
 
 
 
 
 
 
 
 
 
 
 
 
Beginning of period
$
5.68
 
$
6.23
 
$
7.56
 
$
8.23
 
Operations
 
 
 
 
 
 
 
 
 
 
Net investment income
 
0.00
 
 
(0.02
)
 
(0.05
)
 
(0.01
)
(loss)
 
 
 
 
 
 
 
 
 
 
 
 
Net realized and unrealized
 
 
 
 
 
 
 
 
 
 
 
 
gain (loss) on investments
 
0.48
 
 
(0.53
)
 
(1.28
)
 
(0.66
)
Total from operations
 
 0.48
 
 
 (0.55
)
 
 (1.33
)
 
 (0.67
)
Distributions to shareholders
 
 
 
 
 
 
 
 
 
 
 
 
From net investment income
 
0.00
 
 
0.00
 
 
0.00
 
 
0.00
 
Total distributions to
 
 0.00
 
 
 0.00
 
 
 0.00
 
 
 0.00
 
shareholders
 
 
 
 
 
 
 
 
 
 
Net asset value
 
 
 
 
 
 
 
 
 
 
 
 
End of period
$
6.16
 
$
5.68
 
$
6.23
 
$
7.56
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total investment return
 
8.45
% (2)
 
(8.83
)%
 
(17.59
)%
 
(8.14
)% (2)
 
 
 
 
 
 
 
 
 
 
 
 
 
Net assets, end of period (in thousands)
 
$0
 
 
$67
 
 
$1
 
 
$5
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Ratios
 
 
 
 
 
 
 
 
 
 
 
 
Expenses to average net assets
 
 
 
 
 
 
 
 
 
 
 
 
Before expense reimbursement
 
2.81
% (3)
 
3.00
%
 
2.80
%
 
2.75
% (3)
After expense reimbursement
 
2.14
% (3)
 
1.70
%
 
1.65
%
 
1.65
% (3)
Net investment income (loss) to average net
 
 
 
 
 
 
 
 
 
 
 
 
  assets
 
 
 
 
 
 
 
 
 
 
 
 
Before expense reimbursement
 
(1.67
)% (3)
 
(1.69
)%
 
(1.82
)%
 
(1.78
)% (3)
After expense reimbursement
 
(1.00
)% (3)
 
(0.39
)%
 
(0.67
)%
 
(0.67
)% (3)
Portfolio turnover rate (5)
 
0.0
%
 
5.1
%
 
13.7
%
 
20.0
% (2)
(1)           Class inception.
(2)           Not annualized.
(3)           Annualized.
(4)           Net investment income (loss) per share is based on daily average shares outstanding.
(5)           Calculated on the basis of the Fund as a whole without distinguishing between classes of shares issued.
(6)          All Class M shareholders redeemed their shares on October 30, 2003. The Fund has subsequently filed and distributed to Class M shareholders, a supplement to the  Prospectus and Statement of Additional Information dated October 1, 2002, as supplemented September 30, 2003, which noted that, effective at the close of business on October 30, 2003 the Class M was terminated.

See notes to the financial statements.
 
     
 

DOW JONES ISLAMIC FUND
NOTES TO THE FINANCIAL STATEMENTS
November 30, 2003 (Unaudited)

1.    Organization

Allied Asset Advisors Funds (the “Trust”), an open-end management investment company, was organized as a Delaware business trust on January 14, 2000. The Trust currently offers one series of shares to investors, the Dow Jones SM Islamic Fund (f/k/a Dow Jones Islamic Index Fund) (the “Fund”), a diversified series of the Trust. Allied Asset Advisors, Inc. (“AAA”or the “Advisor”), a Delaware corporation, serves as an investment advisor to the Fund.

The trust is authorized to issue an unlimited number of shares without par value, of each series. The Trust currently offers one class of shares of the Fund: Class K. Class M shares are subject to a 12b-1 fee of .75% as described in the Fund’s Class M prospectus. Each class of shares has identical rights and voting privileges except with respect to 12b-1 fees and voting rights on matters affecting a single class of shares. Effective October 30, 2003, the Trust terminated Class M shares.

The investment objective of the Fund seeks growth of capital while adhering to Islamic principles. To achieve the investment objective, under normal circumstances, the Fund invests at least 80% of its net assets in domestic and foreign securities included in the Dow Jones Islamic Market Indexes SM , as well as up to 20% of its net assets in securities chosen by the Fund’s investment advisor that meet Islamic principles. Prior to October 1, 2003, the Fund’s investment objective was to match the total return of the Dow Jones Islamic Market USA Index SM (the “Index” ) by investing substantially all of its assets in roughly the same proportions as the stocks were represented in the Index.

2.    Significant Accounting Policies
 
The following is a summary of significant accounting policies consistently followed by the Fund in the preparation of its financial statements. These policies are in conformity with accounting principles generally accepted in the United States of America.

Use of Estimates: In preparing the financial statements in conformity with accounting principles generally accepted in the United States of America, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the financial statements and the reported amounts of increases and decreases in net assets from operations during the reporting period. Actual results could differ from these estimates.

Security Valuation: Investment securities are carried at value determined using the following valuation methods:

•    Equity securities listed on an U.S. securities exchange or NASDAQ for which market quotations are readily available are valued at the last quoted sale price on the valuation date.

•    Options, futures, unlisted U.S. securities and listed U.S. securities not traded on the valuation date for which market quotations are readily available are valued at the most recent quoted bid price. The Fund did not hold any such securities during the six months ended November 30, 2003.

•    Securities or other assets for which market quotations are not readily available are valued at fair value as determined in good faith by the investment advisor under direction of the Board of Trustees. The Fund did not hold any such securities during the six months ended November 30, 2003.

Foreign Securities: Investing in securities of foreign companies and foreign governments involves special risks and consideration not typically associated with investing in U.S. companies and the U.S. government. These risks include revaluation of currencies and future adverse political and economic developments. Moreover, securities of many foreign companies and foreign governments and their markets may be less liquid and their prices more volatile than those of securities of comparable U.S. companies and the U.S. government.

Federal Income Taxes: It is the Fund’s policy to comply with the requirements of the Internal Revenue Code applicable to regulated investment companies and the Fund intends to distribute all of its taxable income and net capital gains to shareholders. Therefore, no federal income tax provision is required. The Fund intends to utilize provisions of the federal income tax laws which allow it to carry a realized capital loss forward for eight years following the year of the loss and offset such losses against any future realized capital gains. At November 30, 2003, the Fund had a capital loss carryover of $2,817,150, which will expire between May 31, 2009 and May 31, 2011. Net realized gains or losses may differ for financial reporting and tax purposes as a result of deferral of losses relating to wash sale transactions.

At November 30, 2003, the cost of investment securities for federal income tax purposes was $23,215,856. At November 30, 2003, unrealized appreciation and depreciation for federal income tax purposes was as follows:

Appreciation
$
2,257,478
Depreciation
 
(6,349,807)
Net unrealized depreciation on investments
$
 (4,092,329)
 
 
 

Distributions to Shareholders: The Fund will distribute substantially all of the net investment income and net realized gains that it has realized on the sale of securities. These income and gains distributions will generally be paid once each year, on or before December 31. The character of distributions made during the year from net investment income or net realized gains may differ from the characterization for federal income tax purposes due to differences in the recognition of income, expense or gain items for financial reporting and tax reporting purposes.


 
     
 
DOW JONES ISLAMIC FUND
NOTES TO THE FINANCIAL STATEMENTS (Continued)
November 30, 2003 (Unaudited)

On December 31, 2002, a distribution of $.014 per share was declared for Class K shares. The dividend was paid on December 31, 2002, to shareholders of record on December 30, 2002.

The tax character of distributions paid were as follows:

 
Six Months Ended
 
Year Ended
 
November 30, 2003
 
May 31, 2003
Distribution paid from:
 
 
 
 
 
   Ordinary income
$
—
 
$
43,387
   
   

Accounting principles generally accepted in the United States of America require that permanent financial reporting and tax differences relating to shareholder distributions be reclassified to paid in capital.

At November 30, 2003, the components of distributable earnings on a tax basis were as follows:

Undistributed ordinary income
$22,230
Undistributed long-term capital gains
 —
 

Other: Security and shareholder transactions are recorded on the trade date. Realized gains and losses on sales of investments are calculated on the identified cost basis. Dividend income and distributions to shareholders are recorded on the ex-dividend date. Income, expenses, and realized and unrealized gains or losses are allocated on a pro rata basis to each class of shares except for distribution and service fees, which are unique to Class M shares.

3.    Investment Advisory Agreement

The Trust has an Investment Advisory Agreement (the “Agreement”) with the Advisor, with whom certain officers and Trustees of the Trust are affiliated, to furnish investment advisory services to the Fund. Under the terms of the Agreement, the Trust, on behalf of the Fund, compensates the Advisor for its management services at the annual rate of 0.75% of the Fund’s daily average net assets.

The Trust has a distribution agreement and servicing agreement with Quasar Distributors, LLC (the “Distributor”). The Trust had adopted a Service and Distribution Plan whereby the Fund pays the Distributor servicing fees of up to 0.75% annually, calculated as a percentage of average daily net assets attributable to Class M shares. For the six months ended November 30, 2003, the Fund recognized $240 of distribution fees, which are included in miscellaneous expenses in the statement of operations. Effective October 30, 2003, the Trust terminated Class M shares.

Effective July 1, 2003, if the aggregate annual operating expenses exceed 1.50% and 2.25% of average net assets for Class K and Class

M shares respectively, the Advisor will waive or reimburse the Fund for the amount of such excess.

Prior to July 1, 2003, if the aggregate annual operating expenses exceed 0.95% and 1.70% of average net assets for Class K and Class M shares respectively, the Advisor will waive or reimburse the Fund for the amount of such excess. Prior to June 30, 2002, if the aggregate annual operating expenses exceeded 0.90% and 1.65% of average net assets for Class K and Class M shares respectively, the Advisor waived or reimbursed the Fund for the amount of such excess. Accordingly, for the six months ended November 30, 2003, the Advisor has waived or reimbursed expenses of the Fund in the amount of $60,082.

4.    Capital Share Transactions

Transactions in Class K shares of the Fund for the six months ended November 30, 2003, were as follows:


 
Amount
 
Shares
Shares sold
$ 667,722
 
110,438
Shares redeemed
(1,271,985)
 
(215,769)
Net decrease
$ (604,263)
 
(105,331)
 
 
 
 

Transactions in Class M shares of the Fund for the six months ended November 30, 2003, were as follows:

 
Amount
 
Shares
Shares sold
$ 26,019
 
4,334
Shares redeemed
(99,387)
 
(16,131)
Net decrease
$(73,368)
 
(11,797)
 
 
 
 


Transactions in Class K shares of the Fund for the year ended May 31, 2003, were as follows:

 
Amount
 
Shares
Shares sold
$877,987
 
165,043
Shares reinvested
5,708
 
1,096
Shares redeemed
(1,139,464)
 
(212,059)
Net decrease
$ (255,769)
 
(45,920)
 
 
 
 


Transactions in Class M shares of the Fund for the year ended May 31, 2003, were as follows:
 
 
Amount
 
Shares
Shares sold
$58,112
 
11,802
Shares redeemed
(808)
 
(152)
Net increase
$57,304
 
11,650
 
 
 
 

5.    Securities Transactions

During the six months ended November 30, 2003, the cost of purchases and proceeds from sales of investment securities, other than short-term investments were $0 and $650,369, respectively.
 
     
 

DOW JONES ISLAMIC FUND
NOTES TO THE FINANCIAL STATEMENTS (Continued)
November 30, 2003 (Unaudited)

6.    Change in Independent Accountant
 
On October 30, 2003, Deloitte & Touche LLP ceased being the Fund's independent auditor.
 
The reports of Deloitte & Touche LLP on the financial statements of the Fund for the past two fiscal years contained no adverse opinion or disclaimer of opinion, and were not qualified or modified as to uncertainty, audit scope or accounting principle.
 
In connection with its audits for the two most recent fiscal years, there have been no disagreements with Deloitte & Touche LLP on any matter of accounting principles or practices, financial statement disclosure, or auditing scope or procedure, which disagreements, if not resolved to the satisfaction of Deloitte & Touche LLP would have caused them to make reference thereto in their report on the financial statements for such years.
 
The Fund, with the approval of its Board of Trustees and its Audit Committee, engaged Tait, Weller & Baker as its new independent auditors as of October 30, 2003.
 
     
 
INVESTMENT ADVISOR
AAA
Allied Asset Advisors, Inc.
Burr Ridge, Illinois


DISTRIBUTOR
Quasar Distributors, LLC
Milwaukee, Wisconsin


INDEPENDENT AUDITORS
Tait, Weller & Baker
Philadelphia, Pennsylvania


ADMINISTRATOR, TRANSFER AGENT,
AND FUND ACCOUNTANT
U.S. Bancorp Fund Services, LLC
Milwaukee, Wisconsin


CUSTODIAN
U.S. Bank, N.A. Cincinnati, Ohio



This report has been prepared for shareholders and may be distributed to others only if preceded or accompanied by a current prospectus. To obtain a Prospectus, call the Fund at 1-877-417-6161 or write to Dow Jones Islamic Fund, c/o Allied Asset Advisors, Inc., 745 McClintock Drive, Suite 114, Burr Ridge, IL 60527. Read the Prospectus carefully before you invest or send money. The Prospectus contains important information about the Fund, including charges and expenses. The principal value of your investment will fluctuate and your shares may be worth less than your original cost. Quasar Distributors, LLC is the Distributor for the Fund. 01/04
 

 

Item 2. Code of Ethics.

Not applicable for semi-annual reports.

Item 3. Audit Committee Financial Expert.

Not applicable for semi-annual reports.

Item 4. Principal Accountant Fees and Services.

Not applicable for semi-annual reports.

Item 5. Audit Committee of Listed Registrants.

Not applicable to open-end investment companies.

Item 6. [Reserved]


Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies.

Not applicable to open-end investment companies.

Item 8. [Reserved]


Item 9. Controls and Procedures.

(a) The Registrant’s President/Chief Executive Officer and Treasurer/Chief Financial Officer have concluded that the Registrant's disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940 (the “Act”)) are effective as of a date within 90 days of the filing date of the report that includes the disclosure required by this paragraph, based on the evaluation of these controls and procedures required by Rule 30a-3(b) under the Act.

(b) There were no changes in the Registrant's internal control over financial reporting (as defined in Rule 30a-3(d) under the Act) that occurred during the Registrant's last fiscal half-year that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting.

Item 10. Exhibits.

(a)    Not applicable for semi-annual reports.

(b)    Certifications pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. Filed herewith.

(c)    Certification pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. 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) Allied Asset Advisors Funds                

By (Signature and Title) /S/ Bassam Osman                
Bassam Osman, President

Date January 28, 2004                        


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) Allied Asset Advisors Funds                

By (Signature and Title) /S/ Mohammad Basheeruddin        
Mohammad Basheeruddin, Treasurer

Date January 28, 2004