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Form N-CSRS ALLIED ASSET ADVISORS For: Nov 30

February 8, 2021 2:17 PM EST

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 811-09821



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



715 Enterprise Drive, Suite 100
Oak Brook, IL  60523
(Address of principal executive offices) (Zip code)



Bassam Osman
Allied Asset Advisors Funds
715 Enterprise Drive, Suite 100
Oak Brook, IL  60523
(Name and address of agent for service)



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



Date of fiscal year end: May 31, 2020



Date of reporting period: November 30, 2020


Item 1. Reports to Stockholders.






Semi-Annual
Report

November 30, 2020
(Unaudited)

Trading Symbol: IMANX




IMAN FUND
EXPENSE EXAMPLE
November 30, 2020 (Unaudited)

As a shareholder of the Iman Fund (the “Fund”), you incur two types of costs: (1) transaction costs and (2) ongoing costs, including management 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 (6/1/2020 - 11/30/2020).
 
Actual Expenses
 
The first line of the table below provides information about actual account values and actual expenses. Although the Fund charges no sales load or transaction fees, you will be assessed fees for outgoing wire transfers, returned checks and stop payment orders at prevailing rates charged by U.S. Bancorp Fund Services, LLC, (doing business as U.S. Bank Global Fund Services), the Fund’s transfer agent.  If you request a redemption be made by wire transfer, currently a $15.00 fee is charged by the Fund’s transfer agent.  IRA accounts will be charged a $15.00 annual maintenance fee.  The example below includes, but is not limited to, management fees, fund accounting, custody and transfer agent fees.  However, the example below does not include portfolio trading commissions and related expenses, and other extraordinary expenses as determined under generally accepted accounting principles.  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 the 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.  Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as sales charges (loads), redemption fees, or exchange fees. Therefore, the second line of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher. Please note that Iman Fund does not have any sales charge (loads), redemption fees, or exchange fees.
 
 
Beginning
Ending
Expenses Paid
 
Account Value
Account Value
During Period
 
6/1/20
11/30/20
6/1/20 - 11/30/20*
Actual
$1,000.00
$1,286.30
$7.39
Hypothetical (5% return before expenses)
  1,000.00
  1,018.60
  6.53

*
Expenses are equal to the Fund’s annualized expense ratio of 1.29% multiplied by the average account value over the period multiplied by 183/365 (to reflect the one-half year period).
2

IMAN FUND
ALLOCATION OF PORTFOLIO ASSETS
(Calculated as a percentage of net assets)
November 30, 2020 (Unaudited)





3

IMAN FUND

Total Rate of Return
For the Period November 30, 2010 to November 30, 2020
(Unaudited)



This chart assumes an initial investment of $10,000 made on November 30, 2010 and held through November 30, 2020.
 
Performance data quoted represents past performance and does not guarantee 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.  Current performance of the Fund may be lower or higher than the performance quoted. Performance data current to the recent month end may be obtained by visiting www.investaaa.com.
 
Indices mentioned are unmanaged and used to measure stock markets.  You cannot invest directly in an index.
 
The graph and table do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or redemptions of Fund shares.
 
 
Six
One
Five
Ten
Average Annual Total Return as of November 30, 2020
Months
Year
Years
Years
Iman Fund
28.63%
17.32%
14.94%
12.98%
Dow Jones Islamic Market World Index*
23.63%
27.50%
14.50%
11.42%

*
The Dow Jones Islamic Market World Index is a compilation of 56 country-level benchmark indexes considered by Dow Jones to be in compliance with Islamic principles. The index provides a definitive standard for measuring stock market performance for Islamic investors on a global basis, in accordance with Dow Jones Indexes’ established index methodology.
4

IMAN FUND
SCHEDULE OF INVESTMENTS
November 30, 2020 (Unaudited)
(Classifications are based on the North American Industry Classification System)

Number of
         
Shares
     
Value
 
           
COMMON STOCKS - 98.5%
 
           
   
ADVERTISING, PUBLIC RELATIONS, AND RELATED SERVICES - 1.3%
     
 
2,115
 
The Trade Desk, Inc. (a)
 
$
1,905,763
 
               
     
ANIMAL SLAUGHTERING AND PROCESSING - 0.5%
       
 
4,875
 
Beyond Meat, Inc. (a)
   
682,012
 
               
     
AUTOMOBILE DEALERS - 0.6%
       
 
22,300
 
Vroom, Inc. (a)
   
799,678
 
               
     
BASIC CHEMICAL MANUFACTURING - 0.3%
       
 
1,650
 
Air Products & Chemicals, Inc.
   
462,231
 
               
     
CABLE & OTHER SUBSCRIPTION PROGRAMMING - 0.6%
       
 
5,300
 
Liberty Broadband Corp. - Class C (a)
   
833,955
 
               
     
CLOTHING STORES - 0.7%
       
 
6,140
 
Ross Stores, Inc.
   
660,173
 
 
5,900
 
The TJX Companies, Inc.
   
374,709
 
           
1,034,882
 
               
     
COMMUNICATIONS EQUIPMENT MANUFACTURING - 3.9%
       
 
47,220
 
Apple, Inc.
   
5,621,541
 
               
     
COMPUTER AND PERIPHERAL EQUIPMENT MANUFACTURING - 1.2%
       
 
19,700
 
Logitech International SA (b)
   
1,778,910
 
               
     
COMPUTER SYSTEMS DESIGN & RELATED SERVICES - 6.3%
       
 
26,000
 
Cerner Corp.
   
1,945,840
 
 
6,130
 
EPAM Systems, Inc. (a)
   
1,975,883
 
 
6,025
 
F5 Networks, Inc. (a)
   
980,930
 
 
6,300
 
Jack Henry & Associates, Inc.
   
1,013,418
 
 
5,010
 
Okta, Inc. (a)
   
1,227,651
 
 
3,520
 
ServiceNow, Inc. (a)
   
1,881,616
 
           
9,025,338
 
               
     
COURIERS AND EXPRESS DELIVERY SERVICES - 1.5%
       
 
10,400
 
Ferrari NV (b)
   
2,195,544
 
               
     
CUT & SEW APPAREL MANUFACTURING - 2.6%
       
 
29,900
 
Canada Goose Holdings, Inc. (a)(b)
   
993,876
 
 
7,105
 
Lululemon Athletica, Inc. (a)
   
2,630,413
 
           
3,624,289
 
               
     
DATA PROCESSING, HOSTING, & RELATED SERVICES - 0.9%
       
 
12,800
 
Ceridian HCM Holding, Inc. (a)
   
1,234,176
 
               
     
ELECTRONIC SHOPPING AND MAIL-ORDER HOUSES - 2.6%
       
 
12,000
 
Chewy, Inc. - Class A (a)
   
930,960
 
 
29,500
 
Stitch Fix, Inc. - Class A (a)
   
1,194,750
 
 
6,000
 
Wayfair, Inc. - Class A (a)
   
1,526,160
 
           
3,651,870
 
               
     
EMPLOYMENT SERVICES - 0.4%
       
 
9,200
 
Robert Half International, Inc.
   
590,456
 
               
     
FOOTWEAR MANUFACTURING - 0.5%
       
 
4,800
 
NIKE, Inc. - Class B
   
646,560
 

The accompanying notes are an integral part of these financial statements.
5

IMAN FUND
SCHEDULE OF INVESTMENTS (Continued)
November 30, 2020 (Unaudited)
(Classifications are based on the North American Industry Classification System)

Number of
         
Shares
     
Value
 
   
COMMON STOCKS - 98.5% (Continued)
 
           
   
INDUSTRIAL MACHINERY MANUFACTURING - 1.6%
     
 
5,045
 
ASML Holding NV - ADR (b)
 
$
2,208,348
 
               
     
MACHINERY, EQUIPMENT, & SUPPLIES MERCHANT WHOLESALERS - 0.1%
       
 
4,100
 
Fastenal Co.
   
202,745
 
               
     
MEDICAL AND DIAGNOSTIC LABORATORIES - 1.2%
       
 
13,000
 
CareDx, Inc. (a)
   
743,210
 
 
8,235
 
Guardant Health, Inc. (a)
   
997,423
 
           
1,740,633
 
               
     
MEDICAL EQUIPMENT & SUPPLIES MANUFACTURING - 2.8%
       
 
1,890
 
DexCom, Inc. (a)
   
604,195
 
 
2,775
 
Intuitive Surgical, Inc. (a)
   
2,014,789
 
 
5,625
 
The Estee Lauder Companies Inc.  - Class A
   
1,379,925
 
           
3,998,909
 
               
     
METAL ORE MINING - 3.1%
       
 
19,500
 
Agnico-Eagle Mines Ltd. (b)
   
1,284,465
 
 
85,500
 
Alamos Gold, Inc. - Class A (b)
   
707,085
 
 
143,000
 
B2Gold Corp. (b)
   
797,940
 
 
39,800
 
Wheaton Precious Metals Corp. (b)
   
1,557,772
 
           
4,347,262
 
               
     
MISCELLANEOUS DURABLE GOODS MERCHANT WHOLESALERS - 0.2%
       
 
835
 
Pool Corp.
   
289,002
 
               
     
NAVIGATIONAL, MEASURING, ELECTROMEDICAL,
       
     
  AND CONTROL INSTRUMENTS MANUFACTURING - 2.4%
       
 
10,700
 
Cognex Corp.
   
803,998
 
 
3,070
 
IDEXX Laboratories, Inc. (a)
   
1,415,209
 
 
76,700
 
Pacific Biosciences of California, Inc. (a)
   
1,212,627
 
           
3,431,834
 
               
     
OFFICE ADMINISTRATIVE SERVICES - 0.8%
       
 
9,100
 
Cardlytics, Inc. (a)
   
1,079,988
 
               
     
OFFICES OF REAL ESTATE AGENTS AND BROKERS - 3.1%
       
 
23,200
 
eXp World Holdings, Inc. (a)
   
1,237,256
 
 
26,100
 
Redfin Corp. (a)
   
1,249,929
 
 
17,800
 
Zillow Group, Inc. - Class C (a)
   
1,919,018
 
           
4,406,203
 
               
               
     
OTHER AMBULATORY HEALTH CARE SERVICES - 0.4%
       
 
11,400
 
Ontrak, Inc. (a)
   
566,010
 
               
     
OTHER FINANCIAL INVESTMENT ACTIVITIES - 0.8%
       
 
5,975
 
Sea Ltd. - ADR (a)(b)
   
1,077,711
 
               
               
     
OTHER GENERAL PURPOSE MACHINERY MANUFACTURING - 2.2%
       
 
4,180
 
IDEX Corp.
   
807,367
 
 
2,025
 
Mettler-Toledo International, Inc. (a)
   
2,328,831
 
           
3,136,198
 

The accompanying notes are an integral part of these financial statements.
6

IMAN FUND
SCHEDULE OF INVESTMENTS (Continued)
November 30, 2020 (Unaudited)
(Classifications are based on the North American Industry Classification System)

Number of
         
Shares
     
Value
 
   
COMMON STOCKS - 98.5% (Continued)
 
           
   
OTHER INFORMATION SERVICES - 4.4%
     
 
1,290
 
CoStar Group, Inc. (a)
 
$
1,174,635
 
 
13,340
 
Facebook, Inc. - Class A (a)
   
3,694,780
 
 
16,500
 
Pinterest, Inc. - Class A (a)
   
1,155,330
 
 
5,200
 
Twitter, Inc. (a)
   
241,852
 
           
6,266,597
 
               
     
OTHER MISCELLANEOUS MANUFACTURING - 0.7%
       
 
8,100
 
Peloton Interactive, Inc. - Class A (a)
   
942,435
 
               
     
OTHER SCHOOLS & INSTRUCTION - 2.3%
       
 
46,000
 
TAL Education Group - ADR (a)(b)
   
3,222,760
 
               
     
OTHER TELECOMMUNICATIONS - 3.5%
       
 
3,700
 
ResMed, Inc.
   
775,520
 
 
4,090
 
RingCentral, Inc. - Class A (a)
   
1,214,934
 
 
6,160
 
Zoom Video Communications, Inc. - Class A (a)
   
2,946,698
 
           
4,937,152
 
               
     
OTHER TRANSIT & GROUND PASSENGER TRANSPORTATION - 2.1%
       
 
60,200
 
Uber Technologies, Inc. (a)
   
2,989,532
 
               
     
PHARMACEUTICAL & MEDICINE MANUFACTURING - 6.4%
       
 
4,610
 
10X Genomics, Inc. - Class A (a)
   
705,837
 
 
9,975
 
Acceleron Pharma, Inc. (a)
   
1,177,748
 
 
2,320
 
Bio-Techne Corp.
   
703,679
 
 
4,490
 
Illumina, Inc. (a)
   
1,446,184
 
 
15,000
 
Johnson & Johnson
   
2,170,200
 
 
8,200
 
Moderna, Inc. (a)
   
1,252,468
 
 
1,790
 
Regeneron Pharmaceuticals, Inc. (a)
   
923,694
 
 
2,700
 
Vertex Pharmaceuticals, Inc. (a)
   
614,925
 
 
665
 
West Pharmaceutical Services, Inc.
   
182,981
 
           
9,177,716
 
               
     
SCIENTIFIC RESEARCH & DEVELOPMENT SERVICES - 1.5%
       
 
8,100
 
Berkeley Lights, Inc. (a)
   
671,166
 
 
5,800
 
Exact Sciences Corp. (a)
   
702,148
 
 
15,300
 
NanoString Technologies, Inc. (a)
   
759,492
 
           
2,132,806
 
               
     
SEMICONDUCTOR & OTHER ELECTRONIC
       
     
  COMPONENT MANUFACTURING - 10.9%
       
 
10,000
 
Advanced Micro Devices, Inc. (a)
   
926,600
 
 
2,400
 
Alphabet, Inc. - Class A (a)
   
4,210,560
 
 
1,545
 
Lam Research Corp.
   
699,360
 
 
35,500
 
Marvell Technology Group Ltd. (b)
   
1,643,295
 
 
6,325
 
NVIDIA Corp.
   
3,390,579
 
 
28,400
 
Taiwan Semiconductor Manufacturing Co. Ltd. -  ADR (b)
   
2,755,368
 
 
11,560
 
Texas Instruments, Inc.
   
1,864,050
 
           
15,489,812
 

The accompanying notes are an integral part of these financial statements.
7

IMAN FUND
SCHEDULE OF INVESTMENTS (Continued)
November 30, 2020 (Unaudited)
(Classifications are based on the North American Industry Classification System)

Number of
         
Shares
     
Value
 
   
COMMON STOCKS - 98.5% (Continued)
 
           
   
SOFTWARE PUBLISHERS - 24.1%
     
 
4,700
 
Adobe, Inc. (a)
 
$
2,248,809
 
 
4,845
 
ANSYS, Inc. (a)
   
1,637,901
 
 
27,100
 
Anterix, Inc. (a)
   
811,103
 
 
8,110
 
Appfolio, Inc. - Class A (a)
   
1,321,362
 
 
19,100
 
Appian Corp. (a)
   
2,674,000
 
 
2,215
 
Autodesk, Inc. (a)
   
620,710
 
 
9,940
 
Cadence Design Systems, Inc. (a)
   
1,156,022
 
 
2,275
 
Coupa Software, Inc. (a)
   
748,270
 
 
5,210
 
Datadog, Inc. - Class A (a)
   
515,373
 
 
3,985
 
DocuSign, Inc. (a)
   
908,102
 
 
1,970
 
HubSpot, Inc. (a)
   
776,830
 
 
2,640
 
Intuit, Inc.
   
929,333
 
 
24,475
 
Microsoft Corp.
   
5,239,363
 
 
1,335
 
MongoDB, Inc. (a)
   
383,559
 
 
9,590
 
salesforce.com, Inc. (a)
   
2,357,222
 
 
3,065
 
Shopify, Inc. - Class A (a)(b)
   
3,342,015
 
 
33,200
 
Slack Technologies, Inc. - Class A (a)
   
1,423,616
 
 
25,600
 
Snap, Inc. - Class A (a)
   
1,137,152
 
 
6,040
 
Splunk Inc. (a)
   
1,233,247
 
 
2,670
 
Twilio, Inc. - Class A (a)
   
854,640
 
 
8,470
 
Veeva Systems, Inc. - Class A (a)
   
2,345,089
 
 
32,900
 
ZoomInfo Technologies, Inc. - Class A (a)
   
1,686,125
 
           
34,349,843
 
     
TOTAL COMMON STOCKS (Cost $106,997,872)
   
141,460,626
 
     
Total Investments (Cost ($106,997,872) - 98.5%
   
140,080,701
 
     
Other Assets in Excess of Liabilities - 1.5%
   
2,203,780
 
     
TOTAL NET ASSETS - 100.0%
 
$
142,284,481
 

Percentages are stated as a percent of net assets.
ADR – American Depository Receipt
(a)
Non Income Producing
(b)
Foreign Issued Security

The accompanying notes are an integral part of these financial statements.
8

IMAN FUND
STATEMENT OF ASSETS AND LIABILITIES
November 30, 2020 (Unaudited)

Assets:
     
Investments, at value (cost $106,997,872)
 
$
140,080,701
 
Cash
   
2,446,049
 
Receivable for capital shares sold
   
30,371
 
Dividends receivable
   
71,754
 
Other assets
   
16,895
 
Total Assets
   
142,645,770
 
         
Liabilities:
       
Payable for capital shares redeemed
   
140,470
 
Payable to Advisor (Note 3)
   
111,239
 
Payable for professional fees
   
21,457
 
Payable for Trustee fees
   
9,731
 
Accrued expenses and other liabilities
   
78,392
 
Total Liabilities
   
361,289
 
Net Assets
 
$
142,284,481
 
         
Net assets consist of:
       
Paid-in capital
 
$
100,946,990
 
Total distributable earnings
   
41,337,491
 
Net Assets
 
$
142,284,481
 
         
Shares of beneficial interest outstanding
       
  (unlimited number of shares authorized, no par value)
   
9,512,773
 
Net asset value, redemption price and offering price per share
 
$
14.96
 

The accompanying notes are an integral part of these financial statements.
9

IMAN FUND
STATEMENT OF OPERATIONS
For the Six Months Ended November 30, 2020 (Unaudited)

Investment income:
     
Dividend income (Net of foreign withholding tax of $12,236)
 
$
227,819
 
Total investment income
   
227,819
 
         
Expenses:
       
Advisory fees (Note 3)
   
640,239
 
Administration fees
   
63,670
 
Transfer agent fees and expenses
   
39,761
 
Fund accounting fees
   
19,045
 
Federal and state registration fees
   
16,969
 
Legal fees
   
15,445
 
Trustees’ fees and related expenses
   
9,738
 
Custody fees
   
7,776
 
Audit fees
   
7,012
 
Reports to shareholders
   
5,025
 
Other expenses
   
587
 
Total expenses
   
825,267
 
Net investment loss
   
(597,448
)
         
Realized and unrealized gain on investments:
       
Net realized gain from security transactions
   
13,201,217
 
Change in net unrealized appreciation on investments
   
19,658,069
 
Realized and unrealized gain on investments
   
32,859,286
 
Net increase in net assets from operations
 
$
32,261,838
 

The accompanying notes are an integral part of these financial statements.
10

IMAN FUND
STATEMENTS OF CHANGES IN NET ASSETS

   
Six Months Ended
       
   
November 30, 2020
   
Year Ended
 
   
(Unaudited)
   
May 31, 2020
 
From operations:
           
Net investment loss
 
$
(597,448
)
 
$
(500,243
)
Net realized gain on investments
   
13,201,217
     
745,278
 
Change in net unrealized appreciation on investments
   
19,658,069
     
1,874,544
 
Net increase in net assets from operations
   
32,261,838
     
2,119,579
 
                 
Net decrease in net assets resulting from distributions paid
   
     
(14,823,076
)
                 
From capital share transactions:
               
Proceeds from sale of shares
   
4,471,600
     
14,818,838
 
Net asset value of shares issued in reinvestment of distributions to shareholders
   
     
14,681,213
 
Payments for shares redeemed
   
(9,793,708
)
   
(16,312,590
)
Net increase(decrease) in net assets from capital share transactions
   
(5,322,108
)
   
13,187,461
 
                 
Total increase in net assets
   
26,939,730
     
483,964
 
                 
Net assets:
               
Beginning of period
   
115,344,751
     
114,860,787
 
End of period
 
$
142,284,481
   
$
115,344,751
 

The accompanying notes are an integral part of these financial statements.
11

IMAN FUND
FINANCIAL HIGHLIGHTS
Per Share Data for a Share Outstanding Throughout Each Period

   
Six Months
                               
   
Ended
                               
   
November 30,
                               
   
2020
   
Year Ended May 31,
 
   
(Unaudited)
   
2020
   
2019
   
2018
   
2017
   
2016
 
Net asset value, beginning of period
 
$
11.63
   
$
12.76
   
$
13.96
   
$
12.72
   
$
11.15
   
$
11.40
 
                                                 
Income (loss) from investment operations:
 
Net investment loss(1)
   
(0.09
)
   
(0.05
)
   
(0.06
)
   
(0.05
)
   
0.03
     
0.00
(2) 
Net realized and unrealized
                                               
  gains on investments
   
3.42
     
0.56
     
0.21
     
2.44
     
2.42
     
0.22
 
Total from investment operations
   
3.33
     
0.51
     
0.15
     
2.39
     
2.45
     
0.22
 
                                                 
Less distributions paid:
                                               
From net investment income
   
     
     
     
(0.04
)
   
(0.00
)(2)
   
 
From net realized gain on investments
 
     
(1.64
)
   
(1.35
)
   
(1.11
)
   
(0.88
)
   
(0.47
)
Total distributions paid
   
     
(1.64
)
   
(1.35
)
   
(1.15
)
   
(0.88
)
   
(0.47
)
                                                 
Net asset value, end of period
 
$
14.96
   
$
11.63
   
$
12.76
   
$
13.96
   
$
12.72
   
$
11.15
 
                                                 
Total return
   
28.63
%(3)
   
2.50
%
   
2.72
%
   
19.25
%
   
23.06
%
   
1.99
%
                                                 
Net assets at end of period (000’s)
 
$
142,284
   
$
115,345
   
$
114,861
   
$
108,886
   
$
83,581
   
$
61,067
 
                                                 
Ratio of expenses to average net assets
   
1.29
%(4)
   
1.33
%
   
1.34
%
   
1.33
%
   
1.35
%
   
1.39
%
                                                 
Ratio of net investment income (loss)
                                               
  to average net assets
   
(0.93
)%(4)
   
(0.40
)%
   
(0.48
)%
   
(0.39
)%
   
0.33
%
   
0.03
%
                                                 
Portfolio turnover rate
   
45.7
%(3)
   
95.4
%
   
89.4
%
   
71.6
%
   
74.7
%
   
70.6
%

(1)
Net investment income (loss) per share is calculated using ending balances prior to consideration of adjustments for permanent book to tax differences.
(2)
Less than one cent per share.
(3)
Not annualized.
(4)
Annualized.

The accompanying notes are an integral part of these financial statements.
12

IMAN FUND
NOTES TO THE FINANCIAL STATEMENTS
November 30, 2020 (Unaudited)

1.
Organization

Allied Asset Advisors Funds (the “Trust”), an open-end management investment company, was organized as a Delaware statutory trust on January 14, 2000.  The Trust currently offers one series of shares to investors, the Iman Fund (the “Fund”), a diversified series of the Trust.  Allied Asset Advisors, Inc. (the “Adviser”), a Delaware corporation, serves as investment adviser 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.
 
The investment objective of the Fund is to seek growth of capital while adhering to Islamic principles. To achieve its investment objective, the Fund seeks investments that meet Islamic principles whose prices the Fund’s Adviser anticipates will increase over the long term. Under normal circumstances, the Fund invests its net assets in domestic and foreign securities chosen by the Adviser in accordance with Islamic principles. Islamic principles generally preclude investments in certain businesses (e.g., alcohol, pornography and gambling) and investments in interest bearing debt obligations.  Any uninvested cash will be held in non-interest bearing deposits or invested in a manner following Islamic principles.
 
The Fund is an investment company and, accordingly, follows the investment company accounting and reporting guidance of the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification Topic 946, Financial Services – Investment Companies.
 
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 (“GAAP”).
 
Use of Estimates:  In preparing the financial statements in conformity with GAAP, 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 fair value determined using the following valuation methods:
 
Equity securities listed on a 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 period ended November 30, 2020.
   
Securities or other assets for which market quotations are not readily available are valued at fair value as determined in good faith by the Adviser under direction of the Board of Trustees.  The Fund did not hold any such securities during the year ended November 30, 2020.

The Fund has adopted fair valuation accounting standards which establish an authoritative definition of fair value and a three-tier hierarchy to distinguish between (1) inputs that reflect the assumptions market participants would use in pricing an asset or liability developed based on market data obtained from sources independent of the reporting entity (observable inputs) and (2) inputs that reflect the reporting entity’s own assumptions about the assumptions market participants would use in pricing an asset or liability developed based on the best information available in the circumstances (unobservable inputs) and to establish classification of fair value measurements for disclosure purposes.
 
Summary of Fair Value Exposure at November 30, 2020
 
The Trust has performed an analysis of all existing investments to determine the significance and character of all inputs to their fair value determination. Various inputs are used in determining the value of the Fund’s investments. These inputs are summarized in the three broad levels listed below:
 
Level 1 -
Unadjusted quoted prices in active markets for identical securities the Fund has the ability to access.
   
Level 2 -
Other significant observable inputs (including quoted prices for similar securities in active markets, quoted prices for identical or similar instruments in markets that are not active, model-derived valuations in which all significant inputs and significant value drivers are observable in active markets, interest rates, prepayment speeds, credit risk, etc.)
   
Level 3 -
Significant unobservable inputs (including the Fund’s own assumptions in determining the fair value of investments)
13

IMAN FUND
NOTES TO THE FINANCIAL STATEMENTS (Continued)
November 30, 2020 (Unaudited)

Inputs that are used in determining a fair value of an investment may include price information, credit data, volatility statistics and other factors. These inputs can be either observable or unobservable. The availability of observable inputs can vary between investments and is affected by various factors such as the type of investment or similar investments in the marketplace. The inputs will be considered by the Adviser, along with any other relevant factors in the calculation of an investment’s fair value. The Fund uses prices and inputs that are current as of the measurement date, which may include periods of market dislocations. During these periods, the availability of prices and inputs may be reduced for many investments. This condition could cause an investment to be reclassified between the various levels within the hierarchy.
 
Investments falling into the Level 3 category are primarily supported by quoted prices from brokers and dealers participating in the market for those investments. However, these may be classified as Level 3 investments due to lack of market transparency and corroboration to support these quoted prices. Additionally, valuation models may be used as the pricing source for any remaining investments classified as Level 3. These models rely on one or more significant unobservable inputs and/or significant assumptions by the Adviser. Inputs used in valuations may include, but are not limited to, financial statement analysis, capital account balances, discount rates and estimated cash flows, and comparable company data.
 
The inputs or methodology used for valuing securities are not an indication of the risk associated with investing in those securities.
 
The following is a summary of the inputs used to value the Fund’s investments as of November 30, 2020:
 
   
Level 1
   
Level 2
   
Level 3
   
Total
 
Common Stocks
 
$
140,080,701
   
$
   
$
   
$
140,080,701
 
Total*
 
$
140,080,701
   
$
   
$
   
$
140,080,701
 

*
Additional information regarding the industry and/or geographical classification of these investments is disclosed in the Schedule of Investments.

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.  The Fund does not invest in securities of U.S. or foreign governments.
 
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.
 
As of and during the year ended May 31, 2020, the Fund did not have a liability for any unrecognized tax benefits.  The Fund recognizes interest and penalties, if any, related to unrecognized tax benefits as other expenses in the Statement of Operations.  During the year, the Fund did not incur any interest or penalties.  The statute of limitations on the Fund’s tax returns remains open for the years ended May 31, 2017 through May 31, 2020.
 
As of May 31, 2020, the tax cost of investments and the components of distributable earnings on a tax basis were as follows:
 
Cost of investments
 
$
54,992,856
 
Gross tax unrealized appreciation
 
$
14,056,880
 
Gross tax unrealized depreciation
   
(811,294
)
Net tax unrealized appreciation
   
13,245,586
 
Undistributed ordinary income
   
 
Undistributed long-term capital gains
   
 
Other accumulated losses
   
(3,866,317
)
Total distributable earnings
 
$
9,379,269
 
 
The difference between book basis and tax basis unrealized appreciation is attributable primarily to the tax deferral of losses relating to wash sale transactions.
 
A regulated investment company may elect for any taxable year to treat any portion of any qualified late year loss as arising on the first day of the next taxable year. Qualified late year losses are certain capital and ordinary losses which occur during the portion of the Fund’s taxable year subsequent to October 31 and December 31, respectively. For the taxable year ended May 31, 2020, the Fund deferred, on a tax basis, ordinary late year losses of $316,593, and post-October capital losses of $3,549,724.
14

IMAN FUND
NOTES TO THE FINANCIAL STATEMENTS (Continued)
November 30, 2020 (Unaudited)

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.
 
The tax character of distributions paid were as follows:
 
   
Six Months Ended
   
Year Ended
 
   
November 30, 2020
   
May 31, 2020
 
Ordinary income
 
$
   
$
279,737
 
Long-term capital gains
 
$
   
$
14,543,339
 

Dividend income and distributions to shareholders are recorded on the ex-dividend date.  The Fund may periodically make reclassifications among certain of its capital accounts to reflect the tax character of permanent book to tax differences related to the components of the Fund’s net assets.  These reclassifications have no impact on the net assets or net asset value of the Fund.
 
Other:  Investment transactions and shareholder transactions are accounted for on the trade date.  Net realized gains and losses on securities are computed on the basis of specific security lot identification.  Withholding taxes on foreign dividends have been provided for in accordance with the Fund’s understanding of the applicable country’s tax rules and rates.
 
Subsequent Events: In preparing these financial statements, the Fund has evaluated events and transactions for potential recognition or disclosure through the date the financial statements were issued.
 
COVID-19: The recent global outbreak of coronavirus disease 2019 (“COVID-19”) has disrupted global economic markets and adversely affected individual companies and investment products. The prolonged economic impact of COVID-19 is uncertain. The operational and financial performance of the issuers of securities in which the Fund invests depends on future developments, including the duration and spread of the outbreak, and such uncertainty may in turn impact the value of the Fund’s investments.
 
3.
Investment Advisory and Other Agreements

The Trust has an Investment Advisory Agreement (the “Agreement”) with the Adviser, with whom certain officers and a Trustee 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 Adviser for its management services at the annual rate of 1.00% of the Fund’s daily average net assets.
 
For the six months ended November 30, 2020, the Fund had advisory expenses of $640,239 and as of November 30, 2020, the Fund had $111,239 payable to the Adviser.
 
The Trust has a distribution agreement and a servicing agreement with Quasar Distributors, LLC (the “Distributor”), a subsidiary of Foreside Financial Group, LLC.  Fees for such distribution services are paid to the Distributor by the Adviser.
 
4.
Capital Share Transactions

Capital Share Transactions of the Fund for the period ended November 30, 2020, were as follows:
 
   
Amount
   
Shares
 
Shares sold
 
$
4,471,600
     
343,828
 
Shares reinvested
   
     
 
Shares redeemed
   
(9,793,708
)
   
(745,623
)
Net Decrease
 
$
(5,322,108
)
   
(401,795
)
                 
Shares Outstanding
               
Beginning of period
           
9,914,568
 
End of period
           
9,512,773
 
15

IMAN FUND
NOTES TO THE FINANCIAL STATEMENTS (Continued)
November 30, 2020 (Unaudited)

Capital Share Transactions of the Fund for the year ended May 31, 2020, were as follows:
 
   
Amount
   
Shares
 
Shares sold
 
$
14,818,838
     
1,145,716
 
Shares reinvested
   
14,681,212
     
1,113,056
 
Shares redeemed
   
(16,312,591
)
   
(1,342,427
)
Net Increase
 
$
13,187,460
     
916,345
 
                 
Shares Outstanding
               
Beginning of period
           
8,998,223
 
End of period
           
9,914,568
 

5.
Securities Transactions

During the six months ended November 30, 2020, the cost of purchases and proceeds from sales of investment securities, other than short-term investments, were $89,830,166 and $50,847,060, respectively. There were no purchases or sales of U.S. government securities for the Fund.
 
6.
Beneficial 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 (“1940 Act”). As of November 30, 2020, the North American Islamic Trust (“NAIT”) held 44.35% of the Fund. NAIT is the parent company of the Adviser.
16

IMAN FUND
ADDITIONAL INFORMATION
November 30, 2020 (Unaudited)

Proxy Voting Policies and Procedures (Unaudited)
 
A description of the policies and procedures that the Fund uses to determine how to vote proxies relating to portfolio securities is available without charge, upon request, by calling (877) 417-6161 or by accessing the Fund’s website at http://www.investaaa.com.  Furthermore, you can obtain the description on the SEC’s website at http://www.sec.gov.
 
Proxy Voting Record (Unaudited)
 
Information regarding how the Fund voted proxies relating to portfolio securities during the most recent 12-month period ended June 30 is available without charge, upon request, by calling (877) 417-6161.  Furthermore, you can obtain the Fund’s proxy voting records on the SEC’s website at http://www.sec.gov.
 
Availability of Quarterly Portfolio Schedule (Unaudited)
 
The Fund will file its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Part F of Form N-PORT. The Fund’s Part F of Form N-PORT will be available on the EDGAR database on the SEC’s website at www.sec.gov. These Forms may also be reviewed and copied at the SEC’s Public Reference Room in Washington D.C. Information about the operation of the Public Reference Room may be obtained by calling 1-800-SEC-0330.
 

 

 

 

 

 
PRIVACY POLICY
 
In the course of servicing your account, we collect the following nonpublic personal information about you:
 
 
Information we receive from you on or in applications or other forms, correspondence, or conversations, including, but not limited to, your name, address, phone number, social security number, assets, income and date of birth; and
     
 
Information about your transactions with us, our affiliates, or others, including, but not limited to, your account number and balance, parties to transactions, cost basis information, and other financial information.
     
 
Information collected from our website (including from the use of “cookies”).

We do not disclose any nonpublic personal information about our current or former shareholders to nonaffiliated third parties, except as permitted by law. For example, we are permitted by law to disclose all of the information we collect, as described above, to our transfer agent to process your transactions. Furthermore, we restrict access to your nonpublic personal information to those persons who require such information to provide products or services to you. We maintain physical, electronic, and procedural safeguards that comply with industry standards to guard your nonpublic personal information.
 
In the event that you hold shares of the Fund through a financial intermediary, including, but not limited to, a broker-dealer, bank, or trust company, the privacy policy of your financial intermediary would govern how your financial intermediary shares nonpublic personal information with nonaffiliated third parties.
17









 (This Page Intentionally Left Blank.)
 

 






INVESTMENT ADVISER
Allied Asset Advisors, Inc.
Oak Brook, Illinois


DISTRIBUTOR
Quasar Distributors, LLC
Milwaukee, Wisconsin


INDEPENDENT REGISTERED
PUBLIC ACCOUNTING FIRM
Cohen & Company, Ltd.
Chicago, Illinois


ADMINISTRATOR, TRANSFER AGENT,
AND FUND ACCOUNTANT
U.S. Bank Global Fund Services
Milwaukee, Wisconsin


CUSTODIAN
U.S. Bank, N.A.
Milwaukee, Wisconsin


LEGAL COUNSEL
Latham & Watkins LLP
Chicago, Illinois








This report has been prepared for shareholders and may be distributed to others only if preceded or accompanied by a current prospectus.  Quasar Distributors, LLC is the Distributor for the Fund.









Investment Advisor
AAA
Allied Asset Advisors, Inc.
715 Enterprise Drive
Oak Brook, IL 60523
(630) 789-0453
1-877-417-6161

www.investaaa.com


IF-SEMI1120


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 registrants who are not listed issuers (as defined in Rule 10A-3 under the Securities Exchange Act of 1934).

Item 6. Investments.

(a)
Schedule of Investments is included as part of the report to shareholders filed under Item 1 of this Form.

(b)
Not Applicable

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

Not applicable to open-end investment companies.

Item 8. Portfolio Managers of Closed-End Management Investment Companies.

Not applicable to open-end investment companies.

Item 9. Purchases of Equity Securities by Closed‑End Management Investment Company and Affiliated Purchasers.

Not applicable to open-end investment companies.

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

There have been no material changes to the procedures by which shareholders may recommend nominees to the registrant’s board of trustees.

Item 11. Controls and Procedures.

(a)
The Registrant’s President/Principal Executive Officer and Treasurer/Principal Financial Officer have reviewed the Registrant's disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940 (the “Act”)) as of a date within 90 days of the filing of this report, as required by Rule 30a-3(b) under the Act and Rules 13a-15(b) or 15d‑15(b) under the Securities Exchange Act of 1934.  Based on their review, such officers have concluded that the disclosure controls and procedures are effective in ensuring that information required to be disclosed in this report is appropriately recorded, processed, summarized and reported and made known to them by others within the Registrant and by the Registrant’s service provider.

(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 second fiscal quarter of the period covered by this report that have materially affected, or are reasonably likely to materially affect, the Registrant's internal control over financial reporting.

Item 12. Disclosure of Securities Lending Activities for Closed-End Management Investment Companies

Not applicable to open-end investment companies.

Item 13. Exhibits.

(a)
(1) Any code of ethics or amendment thereto, that is the subject of the disclosure required by Item 2, to the extent that the registrant intends to satisfy Item 2 requirements through filing an exhibit. Not Applicable


(3) Any written solicitation to purchase securities under Rule 23c‑1 under the Act sent or given during the period covered by the report by or on behalf of the registrant to 10 or more persons.  Not applicable to open-end investment companies.

(4) Change in the registrant’s independent public accountant.  There was no change in the registrant’s independent public accountant for the period covered by this report.


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           /s/Bassam Osman
Bassam Osman, President


Date       February 8, 2021



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/Bassam Osman
Bassam Osman, President


Date       February 8, 2021




By           /s/Mohammed Basheeruddin
Mohammed Basheeruddin, Treasurer


Date       February 8, 2021








CERTIFICATIONS

I, Bassam Osman, certify that:

 
1.
 
I have reviewed this report on Form N-CSR of Allied Asset Advisors Funds;
 
2.
 
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
 
3.
 
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the registrant as of, and for, the periods presented in this report;
 
4.
 
The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) and internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the registrant and have:
 
(a)
 
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
 
(b)
 
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
 
(c)
 
Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report based on such evaluation; and
 
(d)
 
Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the second fiscal quarter of the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
 
5.
 
The registrant’s other certifying officer(s) and I have disclosed to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
 
(a)
 
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize, and report financial information; and
 
(b)
 
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

 
 
Date:    February 8, 2021
 
 
 
/s/Bassam Osman
Bassam Osman
President

CERTIFICATIONS

I, Mohammed Basheeruddin, certify that:

 
1.
 
I have reviewed this report on Form N-CSR of Allied Asset Advisors Funds;
 
2.
 
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
 
3.
 
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the registrant as of, and for, the periods presented in this report;
 
4.
 
The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) and internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the registrant and have:
 
(a)
 
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
 
(b)
 
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
 
(c)
 
Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report based on such evaluation; and
 
(d)
 
Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the second fiscal quarter of the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
 
5.
 
The registrant’s other certifying officer(s) and I have disclosed to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
 
(a)
 
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize, and report financial information; and
 
(b)
 
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
 


Date:    February 8, 2021
 
/s/Mohammed Basheeruddin
Mohammed Basheeruddin
Treasurer





Certification Pursuant to Section 906 of the Sarbanes-Oxley Act

Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, each of the undersigned officers of the Allied Asset Advisors Funds, does hereby certify, to such officer’s knowledge, that the report on Form N-CSR of the Allied Asset Advisors Funds for the six months ended November 30, 2020 fully  complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as applicable, and that the information contained in the Form N-CSR fairly presents, in all material respects, the financial condition and results of operations of the Allied Asset Advisors Funds for the stated period.



/s/Bassam Osman
Bassam Osman
President, Allied Asset Advisors Funds
 
 
/s/Mohammed Basheeruddin
Mohammed Basheeruddin
Treasurer, Allied Asset Advisors Funds
Dated:    February 8, 2021
 


This statement accompanies this report on Form N-CSR pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 and shall not be deemed as filed by Allied Asset Advisors Funds for purposes of Section 18 of the Securities Exchange Act of 1934.







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