N-CSRS 1 ammncsrs.htm N-CSRS Filing

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: 811-21927


AMM Funds

(Exact Name of Registrant as Specified in Charter)


PO Box 675203

14249 Rancho Santa Fe Farms Road

Rancho Santa Fe, CA 92067

(Address of Principal Executive Offices)  (Zip Code)


Gabriel B. Wisdom

PO Box 675203

14249 Rancho Santa Fe Farms Road

Rancho Santa Fe, CA 92067

 (Name and Address of Agent for Service)


With copy to:

JoAnn M. Strasser, Thompson Hine LLP

41 S. High Street, Suite 1700, Columbus, Ohio  43215


Registrant’s Telephone Number, including Area Code:  858-755-0909


Date of fiscal year end: July 31


Date of reporting period: January 31, 2016


Form N-CSR is to be used by management investment companies to file reports with the Commission not later than 10 days after the transmission to stockholders of any report that is required to be transmitted to stockholders under Rule 30e-1 under the Investment Company Act of 1940 (17 CFR 270.30e-1).  The Commission may use the information provided on Form N-CSR in its regulatory, disclosure review, inspection and policymaking roles.


A registrant is required to disclose the information specified by Form N-CSR, and the Commission will make this information public.  A registrant is not required to respond to the collection of information contained in Form N-CSR unless the Form displays a currently valid Office of Management and Budget ("OMB") control number.  Please direct comments concerning the accuracy of the information collection burden estimate and any suggestions for reducing the burden to Secretary, Securities and Exchange Commission, 450 Fifth Street, NW, Washington, DC 20549-0609.  The OMB has reviewed this collection of information under the clearance requirements of 44 U.S.C. § 3507.


Item 1.  Reports to Stockholders.















SEMI-ANNUAL REPORT



AMM FUNDS


 

THE FALLEN ANGELS INCOME FUND



January 31, 2016

(UNAUDITED)















AMM FUNDS

THE FALLEN ANGELS INCOME FUND

PORTFOLIO ANALYSIS

JANUARY 31, 2016 (UNAUDITED)



The following chart gives a visual breakdown of the Fund by the industry sectors the underlying securities represent as a percentage of the portfolio of investments.

[ammsemiannual002.gif]


* 0.00% due to rounding.


Per the fee table in the December 1, 2015 Prospectus, the Fund’s total annual operating expense ratio was 2.40%.


Portfolio composition subject to change.




AMM FUNDS

THE FALLEN ANGELS INCOME FUND

SCHEDULE OF INVESTMENTS

JANUARY 31, 2016 (UNAUDITED)






 Shares

 

 

Value

 

 

 

 

COMMON STOCKS - 75.99%

 

 

 

 

 

Consumer Discretionary - 13.53%

 

2,380

 

McDonalds Corp.

$        294,596

28,715

 

Rite Aid Corp. *

          223,690

2,760

 

The Walt Disney Co.

          264,463

6,710

 

Viacom, Inc. Class B

          306,244

4,020

 

Yum! Brands, Inc.

          290,927

 

 

 

       1,379,920

Consumer Staples - 13.13%

 

2,350

 

Anheuser-Busch InBev SA ADR

          295,724

3,200

 

The Kraft Heinz Co.

          249,792

2,100

 

PepsiCo, Inc.

          208,530

3,140

 

Philip Morris International, Inc.

          282,631

3,700

 

Procter & Gamble Co.

          302,253

 

 

 

       1,338,930

Energy - 2.84%

 

3,720

 

Exxon Mobil Corp.

          289,602

 

 

 

 

Financials - 11.10%

 

920

 

BlackRock, Inc.

          289,119

4,680

 

JP Morgan Chase & Co.

          278,460

5,700

 

Wells Fargo & Co.

          286,311

3,740

 

Visa, Inc.

          278,593

 

 

 

       1,132,483

Healthcare - 14.22%

 

5,090

 

AbbVie, Inc.

          279,441

4,640

 

Baxalta, Inc.

          185,646

4,030

 

Baxter International, Inc.

          147,498

2,850

 

Johnson & Johnson

          297,654

3,400

 

Novartis AG ADR *

          265,098

9,000

 

Pfizer, Inc.

          274,410

 

 

 

       1,449,747

Industrials - 7.76%

 

10,050

 

General Electric Co.

          292,455

3,560

 

Norfolk Southern Corp.

          250,980

3,240

 

Union Pacific Corp.

          233,280

725

 

Vectrus, Inc. *

           14,326

 

 

 

          791,041


* Non-income producing security during the period.

ADR - American Depository Receipt.

The accompanying notes are an integral part of these financial statements.



AMM FUNDS

THE FALLEN ANGELS INCOME FUND

SCHEDULE OF INVESTMENTS (CONTINUED)

JANUARY 31, 2016 (UNAUDITED)






 Shares

 

 

Value

 

 

Information Technology - 13.42%

 

2,870

 

Apple, Inc.

 $       279,366

3,050

 

MasterCard, Inc.

          271,542

5,300

 

Microsoft Corp.

          291,977

5,790

 

Paychex, Inc.

          277,109

5,470

 

Qualcomm, Inc.

          248,010

 

 

 

       1,368,004

Transportation - 0.00%

 

45,000

 

Sea Containers Ltd. Class A (Bermuda) † *

                   -

 

 

 

 

TOTAL FOR COMMON STOCKS (Cost $6,993,600) - 76.00%

       7,749,727

 

 

 

 

CORPORATE BONDS - 8.48%

 

 

 

 

 

Consumer Cyclical - 2.61%

 

100,000

 

Amazon.com, Inc., 1.20%, 11/29/17

           99,940

210,000

 

Outerwall, Inc., 5.875%, 06/15/21

          166,425

 

 

 

          266,365

Consumer Discretionary - 2.09%

 

235,000

 

Yum! Brands, Inc., 3.75%, 11/1/21

          212,969

 

 

 

 

Information Technology - 1.92%

 

200,000

 

Verisign, Inc., 4.625%, 05/1/23

          196,000

 

 

 

 

Real Estate  - 1.86%

 

205,000

 

Toys R Us PPTY Co. II, 8.5%, 12/1/17

          189,728

 

 

 

 

TOTAL FOR CORPORATE BONDS (Cost $939,090) - 8.48%

          865,062

 

 

 

 

PREFERRED SECURITIES - 8.60%

 

 

 

 

 

Financials - 6.51%

 

201

 

Bank of America Corp., Series L, 7.25%, 12/31/49

          220,513

8,787

 

Charles Schwab Corp., Series B, 6.00%, 12/31/49

          232,592

8,100

 

Discover Financial Services, Series B, 6.50%, 12/31/49

          210,195

 

 

 

          663,300

Real Estate - 2.09%

 

8,380

 

American Homes 4 Rent, Series A, 5.00%, 12/31/49

          213,324

 

 

 

 

TOTAL FOR PREFERRED SECURITIES (Cost $845,372) - 8.60%

          876,624


* Non-income producing security during the period.

† This security has been valued according to the fair value pricing policies of the Fund.

The accompanying notes are an integral part of these financial statements.




AMM FUNDS

THE FALLEN ANGELS INCOME FUND

SCHEDULE OF INVESTMENTS (CONTINUED)

JANUARY 31, 2016 (UNAUDITED)






 Shares

 

 

Value

 

 

 

 

REAL ESTATE INVESTMENT TRUST - 2.71%

 

10,600

 

Gaming & Leisure Properties, Inc.

 $       276,448

TOTAL FOR REAL ESTATE INVESTMENT TRUST (Cost $358,936) - 2.71%

          276,448

 

 

 

 

STRUCTURED NOTES - 0.64%

 

 

 

 

 

Financials - 0.64%

 

13,000

 

Morgan Stanley, 10.00%, 12/31/34

           11,050

14,000

 

Morgan Stanley, 7.15%, 08/30/28

           12,168

24,000

 

Morgan Stanley, 7.00%, 09/30/30

           22,194

15,000

 

Natixis U.S. Medium-Term Note Program LLC., 0.00% **

           12,000

10,000

 

The Bank of Nova Scotia, 4.228%, 08/28/34 **

             8,144

TOTAL FOR STRUCTURED NOTES (Cost $63,244) - 0.64%

           65,556

 

 

 

 

US TREASURY BILL - 2.45%

 

250,000

 

US Treasury Bills, 0.0% Due 02/25/2016

          249,963

TOTAL FOR US TREASURY BILL (Cost $249,967) - 2.45%

          249,963

 

 

 

 

SHORT-TERM INVESTMENT - 2.09%

 

212,657

 

First American Treasury Obligation Fund Class Z 0.05% **

          212,657

SHORT-TERM INVESTMENT (Cost $212,657) - 2.09%

          212,657

 

 

 

 

TOTAL INVESTMENTS (Cost $9,662,866) - 100.97%

     10,296,037

 

 

 

 

LIABILITIES IN EXCESS OF OTHER ASSETS, NET - (0.97)%

         (98,652)

 

 

 

 

NET ASSETS - 100.00%

$   10,197,385



** Variable rate security; the coupon rate shown represents the yield at January 31, 2016.

The accompanying notes are an integral part of these financial statements.



AMM FUNDS

THE FALLEN ANGELS INCOME FUND

SCHEDULE OF PUT OPTIONS WRITTEN

JANUARY 31, 2016 (UNAUDITED)






PUT OPTIONS WRITTEN *

 

 

 

 

 

Underlying Security

Shares Subject

 

Expiration Date/Exercise Price

to Put

Value

 

 

 

Baxalta, Inc.

 

 

February 19, 2016 Put @ $37.50

2,800

$        700

 

 

 

SPDR S&P 500 ETF

 

 

February 12, 2016 Put @ $185.00

1,400

966

 

 

 

 

 

 

Total (Premiums Received $7,985)

 

$     1,666












* Non-income producing securities during the period.

The accompanying notes are an integral part of these financial statements.




AMM FUNDS

THE FALLEN ANGELS INCOME FUND

STATEMENT OF ASSETS AND LIABILITIES

JANUARY 31, 2016 (UNAUDITED)






Assets:

 

 

       Investments in Securities, at Value (Cost $9,662,866)

$    10,296,037

       Receivables:

 

           Due From Broker

18,157

           Dividends and Interest

26,116

        Prepaid Expenses

              1,668

                     Total Assets

      10,341,978

Liabilities:

 

 

       Options Written, at Value (Premium Received $7,985)

1,666

       Payables:

 

           Management Fees

8,786

           Administrative Fees

2,196

           Distribution Fees

2,184

           Trustee Fees

500

           Shareholder Redemption

118,427

           Accrued Expenses

            10,834

                     Total Liabilities

          144,593

Net Assets

 

$    10,197,385

 

 

 

Net Assets Consist of:

 

    Paid In Capital

$    13,447,630

    Accumulated Undistributed Net Investment Income (Loss)

              4,850

    Accumulated Realized Loss on Investments

     (3,894,585)

    Unrealized Appreciation in Value of Investments

          639,490

Net Assets, for 1,099,525 Shares Outstanding

$    10,197,385

 

 

 

Net Asset Value Per Share

$              9.27





The accompanying notes are an integral part of these financial statements.




AMM FUNDS

THE FALLEN ANGELS INCOME FUND

STATEMENT OF OPERATIONS

JANUARY 31, 2016 (UNAUDITED)






Investment Income:

 

       Dividends (net of foreign withholding of $1,107)

$          123,996

       Interest

 

              19,559

            Total Investment Income

            143,555

 

 

 

Expenses:

 

 

       Advisory

              52,590

       Administrative

              13,147

       Distribution (12b-1)

              13,147

       Transfer Agent

              14,596

       Registration

              12,591

       Custodian

                4,105

       Audit

 

                5,987

       Legal

 

                5,837

       Trustee

 

                2,713

       Printing and Mailing

                  308

       Miscellaneous

                1,422

            Total Expenses

            126,443

 

 

 

Net Investment Income

              17,112

 

 

 

Realized and Unrealized Gain (Loss) on:

 

   Realized Loss on Investments

          (300,270)

   Realized Gain on Options

                  352

   Net Change in Unrealized Appreciation (Depreciation) on:

 

        Investments

          (235,683)

        Options

 

                6,319

Net Realized and Unrealized Loss on Investments

          (529,282)

 

 

 

Net Decrease in Net Assets Resulting from Operations

 $       (512,170)





The accompanying notes are an integral part of these financial statements.




AMM FUNDS

THE FALLEN ANGELS INCOME FUND

STATEMENTS OF CHANGES IN ASSETS

JANUARY 31, 2016 (UNAUDITED)






 

 

(Unaudited)

 

 

 

Six Months

 

 

 

    Ended

Year Ended

 

 

1/31/2016

7/31/2015

Increase (Decrease) in Net Assets From Operations:

 

 

    Net Investment Income

$       17,112

$    127,096

    Net Realized Gain (Loss) on Investments & Options

    (299,918)

        82,970

    Capital Gain Distributions from Portfolio Companies

                 -

                 -

    Unrealized Depreciation on Investments & Options

    (229,364)

   (166,125)

    Net Increase (Decrease) in Net Assets Resulting from Operations

    (512,170)

        43,941

 

 

 

 

Distributions to Shareholders:

 

 

    Net Investment Income

      (37,111)

   (142,657)

    Realized Gain

                 -

                 -

    Total Distributions Paid to Shareholders

      (37,111)

   (142,657)

 

 

 

 

Capital Share Transactions

    1,008,521

   (368,542)

 

 

 

 

Total Increase (Decrease) in Net Assets

       459,240

   (467,258)

 

 

 

 

Net Assets:

 

 

 

Beginning of Period

    9,738,145

 10,205,403

 

 

 

 

End of Period (Including Undistributed Net Investment Income of  

       $4,850 and $24,849, respectively)

 

 

$10,197,385

$ 9,738,145




 The accompanying notes are an integral part of these financial statements.




AMM FUNDS

THE FALLEN ANGELS INCOME FUND

FINANCIAL HIGHLIGHTS

JANUARY 31, 2016 (UNAUDITED)






 

 

(Unaudited)

Six Months

Ended

1/31/2016

 

Years Ended

 

 

 

 

 

 

 

 

 

7/31/

2015

7/31/

2014

7/31/

2013

7/31/

2012

7/31/

2011

 

 

 

 

 

 

 

 

 

Net Asset Value, at Beginning of Period

$         9.85

 

$    9.96

$    9.19

$   7.96

$     7.74

$    7.36

 

 

 

 

 

 

 

 

 

Income (Loss) From Investment Operations:

 

 

 

 

 

 

 

  Net Investment Income *

           0.02

 

      0.13

      0.14

     0.18

       0.24

      0.23

  Net Gain (Loss) on Securities

        (Realized and Unrealized)

        (0.57)

 

   (0.10)

      0.74

     1.19

       0.20

      0.40

     Total from Investment Operations

        (0.55)

 

      0.03

      0.88

     1.37

       0.44

      0.63

 

 

 

 

 

 

 

 

 

Distributions:

 

 

 

 

 

 

 

 

  Net Investment Income

        (0.03)

 

   (0.14)

   (0.11)

  (0.14)

    (0.22)

   (0.25)

  Realized Gains

               -

 

           -

           -

           -

            -

            -

     Total from Distributions

        (0.03)

 

   (0.14)

   (0.11)

  (0.14)

    (0.22)

   (0.25)

 

 

 

 

 

 

 

 

 

Net Asset Value, at End of Period

$         9.27

 

$    9.85

$    9.96

$   9.19

$     7.96

$    7.74

 

 

 

 

 

 

 

 

 

Total Return **

     (5.56)%

 

  0.29%

  9.59%

17.35%

   5.93%

  8.63%

 

 

 

 

 

 

 

 

 

Ratios/Supplemental Data:

 

 

 

 

 

 

 

  Net Assets at End of Period (Thousands)

$      10,197

 

$  9,738

$10,205

$ 9,559

$   9,324

$11,067

     Ratio of Expenses to Average Net Assets

2.41%†

 

2.39%

2.32%

2.49%

2.33%

2.27%

     Ratio of Net Investment Income to

          Average Net Assets

0.33%†

 

1.25%

1.39%

2.10%

3.19%

3.01%

  Portfolio Turnover

18.97%

 

35.17%

66.27%

43.58%

69.06%

19.62%




* Per share net investment income has been determined on the basis of average shares outstanding during the period.

** Assumes reinvestment of dividends.

† Annualized

The accompanying notes are an integral part of these financial statements.




AMM FUNDS

THE FALLEN ANGELS INCOME FUND

NOTES TO FINANCIAL STATEMENTS

JANUARY 31, 2016 (UNAUDITED)



Note 1. Organization

The Fallen Angels Income Fund (the “Fund”), a diversified series of AMM Funds (the “Trust”), an open-end investment company, was organized as an Ohio business trust on June 20, 2006.  The Fund commenced operations on November 10, 2006. The Trust is permitted to issue an unlimited number of shares of beneficial interest of separate series. The Fund is the only series currently authorized by the Board of Trustees (“the Board”).  The investment adviser to the Fund is American Money Management, LLC (the “Advisor”).


The AMM Value Fund, a series of the Trust, was liquidated on October 16, 2015.


The Income Fund’s investment objective is to seek high current income with the potential for capital appreciation.


Note 2. Summary of Significant Accounting Policies

The following is a summary of the significant accounting policies followed by the Fund in the preparation of the financial statements.  The Fund is an investment company that follows the accounting and reporting guidance of Accounting Standards Codification Topic 946 applicable to investment companies.


Security Valuation: All investments in securities are recorded at their estimated fair value, as described in Note 3.


Option Writing- When the Fund writes an option, an amount equal to the premium received by the Fund is recorded as a liability and is subsequently adjusted to the current fair value of the option written. Premiums received from writing options that expire unexercised are treated by the Fund on the expiration date as realized gains from investments. The difference between the premium and the amount paid on effecting a closing purchase transaction, including brokerage commissions, is also treated as a realized gain, or, if the premium is less than the amount paid for the closing purchase transaction, as a realized loss. If a call option is exercised, the premium is added to the proceeds from the sale of the underlying security or currency in determining whether a Fund has realized a gain or loss. If a put option is exercised, the premium reduces the cost basis of the securities purchased by the Fund. The Fund as writer of an option bears the market risk of an unfavorable change in the price of the security underlying the written option. See Note 6 for additional disclosure on the Fund's option transactions during the six months.


Repurchase Agreements- In connection with transactions in repurchase agreements, it is the Fund’s policy that its custodian take possession of the underlying collateral securities, the fair value of which exceeds the principal amount of the repurchase transaction, including accrued interest, at all times. If the seller defaults, and the fair value of the collateral declines, realization of the collateral by a Fund may be delayed or limited.



AMM FUNDS

THE FALLEN ANGELS INCOME FUND

NOTES TO FINANCIAL STATEMENTS (CONTINUED)

JANUARY 31, 2016 (UNAUDITED)



Financial Futures Contracts- The Fund may invest in financial futures contracts solely for the purpose of hedging its existing portfolio securities, or securities that the Fund intends to purchase, against fluctuations in fair value caused by changes in prevailing market interest rates. Upon entering into a financial futures contract, a Fund is required to pledge to the broker an amount of cash, U.S. government securities, or other assets, equal to a certain percentage of the contract amount (initial margin deposit). Subsequent payments, known as “variation margin,” are made or received by a Fund each day, depending on the daily fluctuations in the fair value of the underlying security. A Fund recognizes a gain or loss equal to the daily variation margin. Should market conditions move unexpectedly, a Fund may not achieve the anticipated benefits of the financial futures contracts and may realize a loss. The use of futures transactions involves the risk of imperfect correlation in movements in the price of futures contracts, interest rates, and the underlying hedged assets.


Short Sales- The Fund may sell a security that they do not own in anticipation of a decline in the fair value of that security. When the Fund sells a security short, it must borrow the security sold short and deliver it to the broker-dealer through which it made the short sale. A gain, limited to the price at which the Fund sold the security short, or a loss, unlimited in size, will be recognized upon the termination of a short sale.


Income Taxes - The Fund intends to continue to qualify each year as a “regulated investment company” under Subchapter M of the Internal Revenue Code of 1986, as amended. By so qualifying, the Fund will not be subject to federal income taxes to the extent that they distribute substantially all of their net investment income and any realized capital gains. It is the Fund’s policy to distribute annually, prior to the end of the calendar year, dividends sufficient to satisfy excise tax requirements of the Internal Revenue Service. This Internal Revenue Service requirement may cause an excess of distributions over the book year-end accumulated income.


In addition, GAAP requires management of the Fund to analyze all open tax years, fiscal years 2012-2015, as defined by IRS statute of limitations for all major industries, including federal tax authorities and certain state tax authorities.  As of and during the year ended July 31, 2015, the Fund did not have a liability for any unrecognized tax benefits.  The Fund has no examination in progress and is not aware of any tax positions for which it is reasonably possible that the total tax amounts of unrecognized tax benefits will significantly change in the next twelve months.


Share Valuation – The price (net asset value) of the shares of the Fund is determined as of the close of the New York Stock Exchange (generally 4:00 p.m. Eastern time) on each day the Fund is open for business and on any other day on which there is sufficient trading in the Fund’s securities to materially affect the net asset value. The Fund is normally open for business on every day except Saturdays, Sundays and the following holidays: New Year’s Day, Martin Luther King Day, Presidents’ Day, Good Friday, Memorial Day, Independence Day, Labor Day, Thanksgiving and Christmas.



AMM FUNDS

THE FALLEN ANGELS INCOME FUND

NOTES TO FINANCIAL STATEMENTS (CONTINUED)

JANUARY 31, 2016 (UNAUDITED)



Security Transaction Timing – Security transactions are recorded on the dates transactions are entered into (the trade dates).  Dividend income and distributions to shareholders are recognized on the ex-dividend date.  Interest income is recognized on an accrual basis.  The Fund uses the identified cost basis in computing gain or loss on sale of investment securities.  Discounts and premiums on securities purchased are amortized over the life of the respective securities.  Withholding taxes on foreign dividends are provided for in accordance with the Fund’s understanding of the applicable country’s tax rules and rates.


Distributions to Shareholders- The Fund typically will distribute substantially all of its net investment income in the form of dividends and capital gains to its shareholders. The Fund will distribute dividends monthly and capital gains annually, and expects that distributions will consist primarily of ordinary income. Distributions will be recorded on ex-dividend date.


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 increase and decreases in net assets from operations during the reporting period. Actual results could differ from these estimates.


Note 3.  Security Valuations


Processes and Structure

The Trusts’ Board of Trustees has adopted guidelines for valuing securities and other derivative instruments including in circumstances in which market quotes are not readily available, and has delegated to the Advisor to apply those methods in making fair value determinations, subject to board oversight.  In accordance with the Trust’s good faith pricing guidelines, the Advisor is required to consider all appropriate factors relevant to the value of securities for which it had determined other pricing sources are not available or reliable as described above.  No single standard for determining fair value controls, since fair value depends upon the circumstances of each individual case.  As a general principle, the current fair value of an issue of securities being valued by the Advisor would appear to be the amount which the owner might reasonably expect to receive for them upon their current sale.  Methods which are in accord with this principle may, for example, be based on (i) a multiple of earnings; (ii) a discount from market of a similar freely traded security (included a derivative security or a basket of securities traded on other markets, exchanges or among dealers); or (iii) yield to maturity with respect to debt issues, or a combination of these and other methods.


Hierarchy of Fair Value Inputs

The Fund utilizes various methods to measure the fair value of most of the investments on a recurring basis. GAAP establishes a hierarchy that prioritizes inputs to valuation techniques used to measure fair value. The three levels of inputs are as follows:



AMM FUNDS

THE FALLEN ANGELS INCOME FUND

NOTES TO FINANCIAL STATEMENTS (CONTINUED)

JANUARY 31, 2016 (UNAUDITED)




·

Level 1. Unadjusted quoted prices in active markets for identical assets or liabilities that the company has the ability to access.


·

Level 2. Observable inputs other than quoted prices included in Level 1 that are observable for the asset or liability either directly or indirectly. These inputs may include quoted prices for the identical instrument on an inactive market, prices for similar instruments, interest rates, prepayment speeds, credit risk, yield curves, default rates, and similar data.


·

Level 3. Unobservable inputs for the asset or liability to the extent that relevant observable inputs are not available, representing the company's own assumptions about the assumptions that a market participant would use in valuing the asset or liability, and that would be based on the best information available.


The availability of observable inputs can vary from security to security and is affected by a wide variety of factors, including, for example, the type of security, whether the security is new and not yet established in the marketplace, the liquidity of markets, and other characteristics particular to the security. To the extent that valuation is based on models or inputs that are less observable or unobservable in the market, the determination of fair value requires more judgment. Accordingly, the degree of judgment exercised in determining fair value is greatest for instruments categorized in Level 3.


The inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, for disclosure purposes, the level in the fair value hierarchy within which the fair value measurement falls in its entirety is determined based on the lowest level input that is significant to the fair value measurement in its entirety.


Fair Value Measurements

A description of the valuation techniques applied to the Fund’s major categories of assets and liabilities measured at fair value on a recurring basis follows.


Equity securities (common and preferred stocks, real estate investment trusts). Securities traded on a national securities exchange (or reported on the NASDAQ national market) are stated at the last reported sales price on the day of valuation. To the extent these securities are actively traded, and valuation adjustments are not applied, they are categorized in Level 1 of the fair value hierarchy. Certain foreign securities may be fair valued using a pricing service that considers the correlation of the trading patterns of the foreign security to the intraday trading in the U.S. markets for investments such as American Depositary Receipts, financial futures, Exchange Traded Funds, and the movement of the certain indexes of securities based on a statistical analysis of the historical relationship and that are categorized in Level 2. Preferred stock and other equities traded on inactive markets or valued by reference to similar instruments are also categorized in Level 2.



AMM FUNDS

THE FALLEN ANGELS INCOME FUND

NOTES TO FINANCIAL STATEMENTS (CONTINUED)

JANUARY 31, 2016 (UNAUDITED)



Corporate Bonds. The fair value of corporate bonds is estimated using various techniques, which may consider recently executed transactions in securities of the issuer or comparable issuers, market price quotations (when observable), bond spreads, fundamental data relating to the issuer, and credit default swap spreads adjusted for any basis difference between cash and derivative instruments. Although most corporate bonds are categorized in Level 2 of the fair value hierarchy, in instances when lower relative weight is placed on transaction prices, quotations, or similar observable inputs, they are categorized in Level 3.


U.S. government securities - U.S. government securities are normally valued using a model that incorporates market observable data, such as reported sales of similar securities, broker quotes, yields, bids, offers, and reference data. Certain securities are valued principally using dealer quotations. U.S. government securities are categorized in level 1 or level 2 of the fair value hierarchy, depending on the inputs used and market activity levels for specific securities. US Treasury Bills with a maturity of 60 days or less are valued using amortized cost and included in level 2 of the fair value hierarchy.


Derivative Instruments (equity options) – Listed derivatives that are actively traded, and valuations adjustments are not applied, are valued based on quoted prices from the exchange and categorized in Level 1 of the fair value hierarchy.


The following table summarizes the inputs used to value the Fund’s assets and liabilities measured at fair value as of January 31, 2016:


Income Fund

Financial Instruments—Assets

 

 

 

 

 

Categories

Level 1

Level 2

Level 3

Fair Value

 

 

 

 

 

    Common Stocks *

$7,749,727

$              -

$          -

$  7,749,727

    Corporate Bonds

-

865,062

-

865,062

    Preferred Securities

876,624

-

-

876,624

    Real Estate Investment Trust

276,448

-

-

276,448

    Structured Notes

-

65,556

-

65,556

    US Treasury Bill

-

249,963

-

249,963

    Short-Term Investment

212,657

-

-

212,657

Total

$9,115,456

$1,180,581

$          -

$10,296,037


* Industry classifications for these categories are detailed in the Schedule of Investments.


The Fund did not hold any Level 3 assets (those valued using significant unobservable inputs) at any time during the six months ended January 31, 2016. Therefore a reconciliation of assets in which significant unobservable inputs were used in determining fair value is not applicable.  Transfers that were made out of the Fund represent securities that are now being valued using evaluated bid prices in active



AMM FUNDS

THE FALLEN ANGELS INCOME FUND

NOTES TO FINANCIAL STATEMENTS (CONTINUED)

JANUARY 31, 2016 (UNAUDITED)



markets during the six months ended January 31, 2016. The Fund considers transfers into and out of Level 1 and Level 2 as of the end of the reporting period.


Fair Valuation- The investment in 45,000 shares of Sea Containers Ltd., in the Fund, has been valued at $0.00 per share.  This security has been valued according to the fair value pricing policies of the Fund.


Note 4.  Investment Management and Service Agreements

The Trust has entered into a management agreement (the “Management Agreement”) with the Advisor pursuant to which the Advisor, subject to the supervision of the Board, provides, or arranges to be provided, to the Fund investment advice and will furnish or arrange to be furnished a continuous investments program for the Fund consistent with the Fund’s investment objective and policies.  Under the Management Agreement, the Fund will pay the Advisor a monthly fee based on the Fund’s average daily net assets at the annual rate of 1.00%. For the six months ended January 31, 2016, the Advisor earned a fee of $52,590 for the Income Fund. The Fund owed the Advisor management fees of $8,786 as of January 31, 2016.


The Trust also has an administration agreement with the Advisor to furnish sponsorship, administrative and supervisory services as may from time to time be reasonably requested by the Trust and in general to provide supervision of the overall operations of the Trust. Under this agreement, the Fund pays the Advisor a monthly fee based on the Fund’s average daily net assets at the annual rate of 0.25%. For the six months ended January 31, 2016, the Advisor earned a fee of $13,147 from the Income Fund.  The Fund owed the Advisor administrative fees of $2,196 as of January 31, 2016.


The Trust has adopted with respect to the Fund, a Plan pursuant to Rule 12b-1 under the 1940 Act whereby the Fund pays the Advisor for certain distribution and promotion expenses activities which are primarily intended to result in the sale of the Fund’s shares, including, but not limited to: advertising, printing of prospectuses and reports for prospective shareholders, preparation and distribution of advertising materials and sales literature, and payments to dealers and shareholder servicing agents who enter into agreements with the Fund. The Fund incurs such distribution expenses at the rate of 0.25% per annum of the Fund’s average net assets. For the six months ended January 31, 2016, the Fund accrued distribution (12b-1) fees under the Plan of $13,147. The Fund owed the Advisor $2,184 as of January 31, 2016.


Note 5.  Related Party Transactions

Gabriel B. Wisdom is the control person of the Advisor and also serves as a trustee and officer of the Trust.  Mr. Wisdom receives benefits from the Advisor resulting from management, administration and distribution (12b-1) fees paid to the Advisor by the Fund.


For the six months ended January 31, 2016, each Independent Trustee received $750 for his or her attendance at the regularly scheduled meetings of the Board of Trustees.  The



AMM FUNDS

THE FALLEN ANGELS INCOME FUND

NOTES TO FINANCIAL STATEMENTS (CONTINUED)

JANUARY 31, 2016 (UNAUDITED)



“interested persons” who serve as Trustees of the Trust receive no compensation for their services as Trustees. None of the executive officers receive compensation from the Trust.


Note 6.  Options

As of January 31, 2016 the Fund had outstanding written call options valued at $1,666. Transactions in written call options during the six months ended January 31, 2016 were as follows:

 

Number of

 

Premiums

 

Contracts

 

Received

Options outstanding at July 31, 2015

-

 

$               -

Options written

92

 

13,374

Options exercised

-

 

-

Options expired

(36)

 

(3,794)

Options terminated in closing purchase transaction

          (14)

 

      (1,595)

Options outstanding at January 31, 2016

             42

 

$       7,985


Realized and unrealized gains and losses on derivatives contracts entered into during the six months ended January 31, 2016, by the Fund, are recorded in the following locations in the Statement of Operations:

 

Location

Realized

Gain/(Loss)

Location

Unrealized

Gain/(Loss)

Options Written & Purchased

Realized Gain on Options

$352

Change in Unrealized Appreciation on Options

$6,319


The selling of written call options may tend to reduce the volatility of the Fund because the premiums received from selling the options will reduce any losses on the underlying securities, but only by the amount of the premiums. However, selling the options may also limit the Fund’s gain on the underlying securities. Written call options expose the Fund to minimal counterparty risk since they are exchange-traded and the exchange’s clearing house guarantees the options against default.


Note 7.  Capital Share Transactions

The Fund is authorized to issue an unlimited number of shares with no par value of separate series.  Paid in capital at January 31, 2016 was $13,447,630 for the Fund.


Transactions in capital stock for the six months ended January 31, 2016 and fiscal year ended July 31, 2015 were as follows:

 

January 31, 2016

July 31, 2015

 

Shares

Amount

Shares

Amount

Shares Sold

320,476

$  2,958,289

50,359

$    505,754

Shares issued in reinvestment of

     distributions

3,935

37,111

14,105

142,642

Shares redeemed

   (213,705)

 (1,986,879)

 (100,581)

(1,016,938)

Net Decrease

     110,706

$  1,008,521

   (36,117)

$ (368,542)




AMM FUNDS

THE FALLEN ANGELS INCOME FUND

NOTES TO FINANCIAL STATEMENTS (CONTINUED)

JANUARY 31, 2016 (UNAUDITED)



Note 8.  Investment Transactions

For the six months ended January 31, 2016, purchases and sales of investment securities other than U.S. Government obligations aggregated $3,363,409 and $1,732,974. Purchases and sales of U.S. Government obligations aggregated $749,885 and $750,000. Purchases and sales of options aggregated $5,037 and $13,374.


Note 9.  Tax Matters

The Fund’s distributable earnings on a tax basis are determined only at the end of each fiscal year.  As of July 31, 2015, the Trust’s most recent fiscal year-end, the components of distributable earnings on a tax basis were as follows:

 

 

 

 

Income

Unrealized Appreciation (Depreciation)

 

 

$

868,854

Undistributed Ordinary Income

 

 

 

24,849

Post October capital losses, pushed to next fiscal year

 

 

 

(126,110)

Capital loss carryforward expiring +:

 

 

 

 

        7/31/2017

 

 

 

(1,012,715)

        7/31/2018

 

 

 

(2,126,805)

        7/31/2019

 

 

 

(329,037)

        Total Distributable Earnings

 

 

$

(2,700,964)


The undistributed ordinary income and capital gains (losses) shown above differ from corresponding accumulated net investment income and accumulated net realized gain (loss) figures reported in the statement of assets and liabilities due to post-October capital loss deferrals on the Fund.


+ The capital loss carryforward will be used to offset any capital gains realized by the Fund in future years.  The Fund will not make distributions from capital gains while a capital loss remains.


As of January 31, 2016, the tax basis components of distributable earnings, unrealized appreciation (depreciation) and cost of investment securities for the Fund were as follows:

 

 

 

Income

Gross unrealized appreciation on investment securities

 

$

1,248,309

Gross unrealized depreciation on investment securities

 

 

 (608,819)

Net unrealized appreciation on investment securities

 

$

639,490

 

 

 

 

Cost of investment securities, including short-term investments

 

$

9,662,866


+ The capital loss carryforward will be used to offset any capital gains realized by the Fund in future years through the expiration date. The Fund will not make distributions from capital gains while a capital loss carryforward remains.


The Fund paid distributions in the amount of $37,111, from ordinary income, for the six months ended January 31, 2016.



AMM FUNDS

THE FALLEN ANGELS INCOME FUND

NOTES TO FINANCIAL STATEMENTS (CONTINUED)

JANUARY 31, 2016 (UNAUDITED)



The Fund paid distributions in the amount of $142,657, from ordinary income, for the year ended July 31, 2015.


The Fund paid distributions in the amount of $111,409, from ordinary income, for the year ended July 31, 2014.


Under current tax law, net capital losses realized after October 31st and net ordinary losses incurred after December 31st may be deferred and treated as occurring on the first day of the following fiscal year.  The Fund’s carryforward losses, post-October losses and post December losses are determined only at the end of each fiscal year.  Under the Regulated Investment Company Modernization Act of 2010, net capital losses recognized after December 31, 2010, may be carried forward indefinitely, and their character is retained as short-term and/or long-term. Although the Act provides several benefits, including the unlimited carryover of future capital losses, there may be a greater likelihood that all or a portion of the Fund’s pre-enactment capital loss carryovers may expire without being utilized due to the fact that post-enactment capital losses get utilized before pre-enactment capital loss carryovers.


Note 10.  Control and Ownership

The beneficial ownership, either directly or indirectly, of more than 25% of the voting securities of a fund creates a presumption of control of the fund, under Section 2(a)(9) of the Investment Company Act of 1940, as amended. As of January 31, 2016, Charles Schwab, for the benefit of its customers, owned, in aggregate, approximately 86.91% of the Fund and may be deemed to control the Fund.


Note 11.  Subsequent Events

Effective February 6, 2016, Ingram S. Chodorow no longer serves as Independent Trustee to the Trust, and the number of Independent Trustees was reduced to three.


Management has evaluated the impact of all subsequent events on the Fund through the issuance date of these financial statements and has noted no other such events requiring disclosure.




AMM FUNDS

THE FALLEN ANGELS INCOME FUND

EXPENSE EXAMPLE

JANUARY 31, 2016 (UNAUDITED)



 Expense Example


As a shareholder of the Fund, you incur ongoing costs which typically consist of management fees, 12b-1 distribution and/or service fees and other Fund expenses. This Example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.


The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period, August 1, 2015 through January 31, 2016.


Actual Expenses


The first line of the table below provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period.


Hypothetical Example for Comparison Purposes


The second line of the table below provides information about hypothetical account values and hypothetical expenses based on each Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.


The Fallen Angels Income Fund

 

 

 

 

 

 

 

 

Beginning Account Value

Ending

Account Value

Expenses Paid During the Period*

 

August 1, 2015

January 31, 2016

August 1, 2015 to January 31, 2016

 

 

 

 

Actual

$1,000.00

$944.41

$11.78

Hypothetical

 

 

 

 (5% Annual Return before expenses)

$1,000.00

$1,013.02

$12.19

 

 

 

 

 

 

 

 

* Expenses are equal to the Fund's annualized expense ratio of 2.41%, multiplied by the average account value over the period, multiplied by 184/366 (to reflect the one-half year period).



AMM FUNDS

THE FALLEN ANGELS INCOME FUND

TRUSTEES & OFFICERS

JANUARY 31, 2016 (UNAUDITED)



TRUSTEES AND OFFICERS


The following table provides information regarding each Trustee who is not an “interested person” of the Trust, as defined in the Investment Company Act of 1940, as amended.  Each Trustee serves as a Trustee until the termination of the Trust unless the Trustee dies, resigns, retires or is removed.



Name Address and

Year of Birth

Position(s) Held with the Fund

Term of Office/Length of  Time Served

Principal Occupation(s) During Past 5 Years

Number of Portfolios in Fund Complex1 Overseen by Trustee

Other Directorships Held by Trustee During Past

5 Years

Kelly C. Huang

c/o American Money Management

P.O. Box 675203

Rancho Santa Fe, CA 92067

Year of Birth: 1966

Trustee

Indefinite/

August 2006- present

Management Consultant, self-employed (2002-present); Instructor, UCSD Extension (2009-present)

1

None

Linda J. Rock

211 23rd Street

Del Mar, CA 92014

Year of Birth: 1957

Trustee

Indefinite/

August 2006 – present

Management Consultant, self-employed (1990-present)

1

None

Miro Copic

c/o American Money Management

P.O. Box 675203

Rancho Santa Fe, CA 92067

Year of Birth: 1961

Trustee

Indefinite/

August 2006 – present

President/CEO, Bottomline Marketing (2001-present); Marketing Professor, San Diego State University (2007-present)

1

None


The following table provides information regarding each Trustee who is an “interested person” of the Trust, as defined in the Investment Company Act of 1940 as amended, and each officer of the Trust.



Name, Address and

Year of Birth

Position(s) Held with the Fund

Term of Office/ Length of  Time Served

Principal Occupation(s) During Past 5 Years

Number of Portfolios in Fund Complex2 Overseen by Trustee

Other Directorships Held by Trustee During Past

 5 Years

Gabriel B. Wisdom1

P.O. Box 675203

Rancho Santa Fe, CA 92067

Year of Birth: 1950

President and Trustee

Indefinite/

Trustee June 2006 – present; Annual/President August 2006 – present.

Chief Executive Officer and Managing Director, American Money Management, LLC (1999 to present) 

1

None

Michael J. Moore

P.O. Box 675203

Rancho Santa Fe, CA 92067

Year of Birth: 1976

Treasurer,

Secretary and Chief Compliance Officer

 

Annual/

August 2006 – present as Treasurer; Annual and Indefinite, respectively/

March 2012 to present as Secretary and Chief Compliance Officer.

Chief Investment Officer, American Money Management (2005 to present)

 

NA

NA



1 Gabriel B. Wisdom is considered an "Interested” Trustee as defined in the Investment Company Act of 1940, as amended, because he is an officer of the Trust and President of the Fund’s investment adviser.

2The "Fund Complex" consists of the AMM Funds.




AMM FUNDS

THE FALLEN ANGELS INCOME FUND

ADDITIONAL INFORMATION

JANUARY 31, 2016 (UNAUDITED)



 Additional Information

The Fund's Statement of Additional Information ("SAI") includes additional information about the trustees and is available, without charge, upon request.  You may call toll-free (866) 663-8023 to request a copy of the SAI or to make shareholder inquiries.


Proxy Voting

The Fund's Advisor is responsible for exercising the voting rights associated with the securities held by the Fund.  A description of the policies and procedures used by the Advisor in fulfilling this responsibility is available without charge by calling (866) 663-8023.  It is also included in the Fund’s SAI, which is available on the Securities and Exchange Commission’s website at http://www.sec.gov.


A description of the policies and procedures that the Fund uses to determine how to vote proxies relating to portfolio securities and information regarding how the Fund voted proxies during the most recent 12-month period ended June 30, are available without charge upon request by (1) calling the Fund at (800) 595-4866 and (2) from Fund documents filed with the Securities and Exchange Commission ("SEC") on the SEC's website at www.sec.gov.


Portfolio Holdings

The Fund files a complete schedule of investments with the SEC for the first and third quarter of the fiscal year on Form N-Q.  The Fund's first and third fiscal quarters end on April 30 and October 31. The Fund's Form N-Q is available on the SEC’s website at http://sec.gov, or it may be reviewed and copied at the SEC’s Public Reference Room in Washington, DC (call 1-800-732-0330 for information on the operation of the Public Reference Room).  You may also obtain copies by calling the Fund at (866) 663-8023.


Management Agreement Renewal

At an in person meeting of the Board of Trustees (the "Board" or the "Trustees") of the AMM Funds (the "Trust"), held on September 16, 2015, the Board considered the renewal of an investment advisory agreement between the Trust and American Money Management, LLC (the "Advisor"), with respect to the Fallen Angels Income Fund (the "Fund") (the "Management Agreement").


The Trustees' review was informed by a memorandum provided by the Advisor as well as by supplemental information provided by the Advisor.  As part of its deliberations, the Board also considered and relied upon the information about the Fund and the Advisor that the Trustees had received throughout the year as part of their ongoing oversight of the Fund and its operations.  The following summarizes the Trustees' deliberations.


Nature, Extent and Quality of Services.  As to the nature, extent, and quality of the services provided by the Advisor, the Board considered the Advisor's investment philosophy and strategy.  The Trustees discussed the Advisor’s organizational structure, and the background and experience of each of the people responsible for the management and/or support of the Fund and its operations.  The Trustees discussed the Advisor’s compliance processes and procedures and agreed they were adequate to manage the Fund.  They acknowledged that the Advisor was working to proactively increase Fund assets and respond to changes in the market to the benefit of the Fund and its shareholders.  The Trustees discussed the liquidation of the Value Fund noting the potential impact it may have to the Fund.  They discussed their



AMM FUNDS

THE FALLEN ANGELS INCOME FUND

ADDITIONAL INFORMATION (CONTINUED)

JANUARY 31, 2016 (UNAUDITED)



experience with the Advisor and its portfolio managers during the term of the Advisor’s relationship with the Fund, and agreed that the Advisor provides high quality services to the Fund.  The Trustees discussed the amount of time spent on research by the Advisor and the time and dedication to the Fund by its staff.  The Trustees agreed that the Advisor has done a satisfactory job of managing the Fund despite a difficult market.  They noted that the Advisor has considered potential changes to the Fund’s strategy in an effort to respond to current market conditions.    The Trustees concluded that the Advisor provided services consistent with the Board's expectations and should be retained.  


Performance.  The Trustees reviewed the Fund’s performance relative to its index and peer group over the 12-month, 3-year and 5-year periods provided by the Advisor.  The Trustees noted that the Income Fund provided positive returns for the 3-year and 5-year periods with returns of 6.34% and 6.91%, respectively.  They considered that the Fund’s returns were in line with the range of returns of funds in its Morningstar category.  The Trustees revisited their conversation with the Advisor earlier in the Meeting and recalled that current market conditions impacted the Fund’s recent performance, but noted that the Advisor has begun to consider modifications to the implementation of the Fund’s strategy to address the recent, disappointing performance.   The Trustees considered that the Fund’s performance was not unreasonable.


Fees and Expenses.  The Trustees noted that the Fund’s advisory fee is 1.00% with a net expense ratio of 2.34%.  They compared the advisory fee to the average fee charged by similarly sized funds in the Fund’s Morningstar category (0.70%) and noted that although the Fund’s fee is higher than the average it is within the range of fees charged by funds in the category which are as high as 1.50%.  With respect to the Fund’s net expense ratio, they noted that it was higher than those for the funds in its Morningstar category, but well within the range of fees charged by other funds in the category which are as high as 3.10%.  They noted that the Advisor has begun to find ways to limit total Fund expenses with the aim of lowering total fund expenses to 2.00% or less in the next 12 months.  The Trustees discussed the 0.25% administration fee paid by the Fund to the Advisor and the indirect benefits to the Advisor from the Rule 12b-1 fees.  The Trustees concluded the Fund's management fee was reasonable.


Profitability.  The Trustees reviewed a profitability analysis provided by the Advisor and noted that based on the information provided, the Advisor realized a net profit in connection with its relationship with each Fund, but agreed that such profit, both in terms of actual dollars and percentage of revenue is minimal.  After further discussion, the Trustees concluded that excessive profitability was not a concern at this time.  


Economies of Scale.  The Trustees noted the absence of breakpoints, but considered, given the size of the Fund, breakpoints are not realistic at this time.  They noted that the Advisor has indicated its willingness to discuss the matter with the Board when the Fund experiences significant asset growth.  The Trustees noted that economies do not appear to have been reached at this time, and agreed that the matter of economies of scale would be revisited if the size of the Fund materially increases.


Conclusion.  Having requested and received such information from the Advisor as the Trustees believed to be reasonably necessary to evaluate the terms of the Management Agreement and as assisted by the advice of Counsel, the Trustees concluded that the fee structure is reasonable and that approval of the Management Agreement is in the best interests of the shareholders of the Fund.








Board of Trustees

Miro Copic

Kelly C. Huang

Linda J. Rock

Gabriel B. Wisdom


Investment Advisor

American Money Management, LLC

P.O. Box 675203

Rancho Santa Fe, CA 92067


Dividend Paying Agent,

Shareholders’ Servicing Agent,

Transfer Agent

Mutual Shareholder Services, LLC


Custodian

U.S. Bank, NA


Independent Registered Public Accounting Firm

Sanville & Company


Legal Counsel

Thompson Hine LLP








This report is provided for the general information of the shareholders of the AMM Funds. This report is not intended for distribution to prospective investors in the Fund, unless preceded or accompanied by an effective prospectus.






Item 2. Code of Ethics.  Not applicable.


Item 3. Audit Committee Financial Expert.  Not applicable.


Item 4. Principal Accountant Fees and Services.  Not applicable.


Item 5. Audit Committee of Listed Companies.  Not applicable.


Item 6.  Schedule of Investments.  Not applicable – schedule filed with Item 1.


Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End Funds.  Not applicable.


Item 8.  Portfolio Managers of Closed-End Funds.  Not applicable.


Item 9.  Purchases of Equity Securities by Closed-End Funds.  Not applicable.


Item 10.  Submission of Matters to a Vote of Security Holders.  


The registrant has not adopted procedures by which shareholders may recommend nominees to the registrant's board of trustees.


Item 11.  Controls and Procedures.  


(a)

Based on an evaluation of the registrant’s disclosure controls and procedures as of Decmeber 29, 2006, the disclosure controls and procedures are reasonably designed to ensure that the information required in filings on Forms N-CSR is recorded, processed, summarized, and reported on a timely basis.


(b)

There were no significant changes in the registrant’s internal control over financial reporting that occurred during the registrant’s first fiscal half-year that have materially affected, or are reasonably likely to materially affect, the registrant’s internal control over financial reporting.


Item 12.  Exhibits.  


(a)(1)

EX-99.CODE ETH.  Not applicable.


(a)(2)

EX-99.CERT.  Filed herewith.


(a)(3)

Any written solicitation to purchase securities under Rule 23c-1 under the Act (17 CFR 270.23c-1) sent or given during the period covered by the report by or on behalf of the registrant to 10 or more persons.  Not applicable.


(b)

EX-99.906CERT.  Filed 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.


AMM Funds


By /s/Gabriel B. Wisdom, President

     Gabriel B. Wisdom

     President


Date: March 23, 2016


Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.


By /s/Gabriel B. Wisdom, President

      Gabriel B. Wisdom

      President


Date March 23, 2016


By /s/Michael Moore

      Michael Moore

      Secretary


Date March 23, 2016