-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, TebsjrmnxvQqmDtMptujao/904uXrObRMO8EDFS8SC9daxPcdbjLXW/edszRfwkF oLK5vuU24Ehg7mirXUgzhQ== 0000909012-96-000074.txt : 19960629 0000909012-96-000074.hdr.sgml : 19960629 ACCESSION NUMBER: 0000909012-96-000074 CONFORMED SUBMISSION TYPE: 485BPOS PUBLIC DOCUMENT COUNT: 8 FILED AS OF DATE: 19960627 EFFECTIVENESS DATE: 19960627 SROS: NONE FILER: COMPANY DATA: COMPANY CONFORMED NAME: AMERIPRIME FUNDS CENTRAL INDEX KEY: 0001000579 STANDARD INDUSTRIAL CLASSIFICATION: UNKNOWN SIC - 0000 [0000] IRS NUMBER: 752616671 STATE OF INCORPORATION: TX FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 485BPOS SEC ACT: 1933 Act SEC FILE NUMBER: 033-96826 FILM NUMBER: 96587295 FILING VALUES: FORM TYPE: 485BPOS SEC ACT: 1940 Act SEC FILE NUMBER: 811-09096 FILM NUMBER: 96587296 BUSINESS ADDRESS: STREET 1: 1793 KINGSWOOD DR STREET 2: STE 200 CITY: SOUTHLAKE STATE: TX ZIP: 76092 BUSINESS PHONE: 8174311297 MAIL ADDRESS: STREET 1: 1793 KINGSWOOD DRIVE STREET 2: SUITE 200 CITY: SOUTHLAKET STATE: TX ZIP: 76092 485BPOS 1 POST-EFFECTIVE AMENDMENT #3 SECURITIES AND EXCHANGE COMMISSION Washington, D. C. 20549 FORM N-1A REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933 / / Pre-Effective Amendment No. / / Post-Effective Amendment No. 3 /X/ and/or REGISTRATION STATEMENT UNDER THE INVESTMENT COMPANY ACT / / OF 1940 Amendment No. 4 /X/ (Check appropriate box or boxes.) AmeriPrime Funds - File Nos. 33-96826 and 811-9096 1793 Kingswood Drive, Suite 200, Southlake, Texas 76092 (Address of Principal Executive Offices) Zip Code Registrant's Telephone Number, including Area Code: (817) 431-2197 Kenneth Trumpfheller, 1793 Kingswood Drive, Suite 200, Southlake, Texas 76092 (Name and Address of Agent for Service) With copy to: Donald S. Mendelsohn, Brown, Cummins & Brown Co., L.P.A. 3500 Carew Tower, Cincinnati, Ohio 45202 Release Date: June 28, 1996 It is proposed that this filing will become effective: / / immediately upon filing pursuant to paragraph (b) /X/ on (date) pursuant to paragraph (b) / / 60 days after filing pursuant to paragraph (a) / / on (date) pursuant to paragraph (a) of Rule 485 Registrant continues its election made by the filing of its Registration Statement, effective November 6, 1995, to register an indefinite number and amount of its securities under Rule 24f-2 of the Investment Company Act. Registrant anticipates that it will file, pursuant to paragraph b(1) of Rule 24f-2, a Form 24F-2 for the fiscal year ending October 31, 1996 on or before December 30, 1996. AmeriPrime Funds CROSS REFERENCE SHEET FORM N-1A FOR CARL DOMINO EQUITY INCOME FUND ITEM SECTION IN EACH PROSPECTUS 1.............................. Cover Page 2.............................. Summary of Fund Expenses 3.............................. Supplement to Prospectus 4.............................. The Fund, Investment Objective and Strategies, Investment Policies and Techniques and Risk Considerations, Operation of the Fund, General Information 5.............................. Operation of the Fund 5A............................. None 6.............................. Cover Page, Dividends and Distributions, Taxes, Operation of the Fund, General Information, Supplement to Prospectus 7.............................. Cover Page, How to Invest in the Fund, Share Price Calculation, Operation of the Fund, 8.............................. How to Redeem Shares 9.............................. None 13.............................. General Information 15.............................. General Information SECTION IN STATEMENT OF ITEM ADDITIONAL INFORMATION 10.............................. Cover Page 11.............................. Table of Contents 12.............................. None 13.............................. Additional Information About Fund Investments and Risk Considerations, Investment Limitations 14.............................. Trustees and Officers 15.............................. Description of the Trust 16.............................. The Investment Adviser, Custodian, Transfer Agent, Accountants 17.............................. Portfolio Transactions and Brokerage 18.............................. Description of the Trust 19.............................. Determination of Share Price 20.............................. None 21.............................. Distributor 22.............................. Investment Performance 23.............................. None AmeriPrime Funds CROSS REFERENCE SHEET FORM N-1A FOR AIT VISION U.S. EQUITY PORTFOLIO ITEM SECTION IN EACH PROSPECTUS 1.............................. Cover Page 2.............................. Summary of Fund Expenses 3.............................. Supplement to Prospectus 4.............................. The Fund, Investment Objective and Strategies, Investment Policies and Techniques and Risk Considerations, Operation of the Fund, General Information 5.............................. Operation of the Fund 5A............................. None 6.............................. Cover Page, Dividends and Distributions, Taxes, Operation of the Fund, General Information, Supplement to Prospectus 7.............................. Cover Page, How to Invest in the Fund, Share Price Calculation, Operation of the Fund, 8.............................. How to Redeem Shares 9.............................. None 13.............................. General Information 15.............................. General Information SECTION IN STATEMENT OF ITEM ADDITIONAL INFORMATION 10.............................. Cover Page 11.............................. Table of Contents 12.............................. None 13.............................. Additional Information About Fund Investments and Risk Considerations, Investment Limitations 14.............................. Trustees and Officers 15.............................. Description of the Trust 16.............................. The Investment Adviser, Custodian, Transfer Agent, Accountants 17.............................. Portfolio Transactions and Brokerage 18.............................. Description of the Trust 19.............................. Determination of Share Price 20.............................. None 21.............................. Distributor 22.............................. Investment Performance 23.............................. None AmeriPrime Funds CROSS REFERENCE SHEET FORM N-1A FOR GLOBALT GROWTH FUND ITEM SECTION IN EACH PROSPECTUS 1.............................. Cover Page 2.............................. Summary of Fund Expenses 3.............................. Supplement to Prospectus 4.............................. The Fund, Investment Objective and Strategies, Investment Policies and Techniques and Risk Considerations, Operation of the Fund, General Information 5.............................. Operation of the Fund 5A............................. None 6.............................. Cover Page, Dividends and Distributions, Taxes, Operation of the Fund, General Information, Supplement to Prospectus 7.............................. Cover Page, How to Invest in the Fund, Share Price Calculation, Operation of the Fund, 8.............................. How to Redeem Shares 9.............................. None 13.............................. General Information 15.............................. General Information SECTION IN STATEMENT OF ITEM ADDITIONAL INFORMATION 10.............................. Cover Page 11.............................. Table of Contents 12.............................. None 13.............................. Additional Information About Fund Investments and Risk Considerations, Investment Limitations 14.............................. Trustees and Officers 15.............................. Description of the Trust 16.............................. The Investment Adviser, Custodian, Transfer Agent, Accountants 17.............................. Portfolio Transactions and Brokerage 18.............................. Description of the Trust 19.............................. Determination of Share Price 20.............................. None 21.............................. Distributor 22.............................. Investment Performance 23.............................. None CARL DOMINO EQUITY INCOME FUND Supplement Dated June 28, 1996 To Prospectus Dated November 6, 1995 The following condensed supplementary financial information for the period ended April 30, 1996, is derived from the unaudited financial statements of the Fund. The unaudited financial statements of the Fund are included in the Statement of Additional Information.
CARL DOMINO EQUITY INCOME FUND FINANCIAL HIGHLIGHTS For a share outstanding throughout the period from November 6, 1995 (Commencement of Operations) through April 30, 1996 (Unaudited) Net asset value - beginning of period.......................... $10.00 -------- Income from investment operations: Net investment income.......................................... .04 Net gain on investments both realized and unrealized........... 1.05 -------- Total from investment operations............................... 1.09 -------- Less distributions: Dividends from net investment income........................... 0 Dividends from capital gains................................... 0 -------- Net asset value- end of period................................. $11.09 ======== Total Return**................................................. 26.25% Ratio/supplemental data: Net assets, end of period (in 000's)........................... 908 Ratio of expenses to average net assets**...................... 1.79% Ratio of net investment income to average net assets**......... .96% Portfolio turnover rate........................................ 26.00% Average Commission rate paid................................... .0538 ** Annualized
The following should be read in conjunction with the section entitled "General Information" on page 12 of the Prospectus: As of May 31, 1996, Carl Domino Associates, L.P. and its Profit Sharing Trust may be deemed to control the Fund as a result of their beneficial ownership of shares of the Fund. CARL DOMINO EQUITY INCOME FUND PROSPECTUS & APPLICATION November 6, 1995 580 Village Blvd., Suite 225 West Palm Beach, Florida 33409 For Information, Shareholder Services and Requests: (800) 506-9922 Carl Domino Equity Income Fund (the "Fund") is a mutual fund whose investment objective is to provide long term growth of capital together with current income. The Fund's portfolio is comprised primarily of dividend-paying common stocks of large, established companies believed by the Adviser, Carl Domino Associates, L.P., to possess less downside risk and volatility than the S&P 500 Index. The Fund is "no-load," which means there are no sales charges or commissions. In addition, there are no 12b-1 fees, distribution expenses or deferred sales charges which are borne by the shareholders. The Fund is one of the mutual funds comprising AmeriPrime Funds, an open-end management investment company, and is distributed by AmeriPrime Financial Securities, Inc. This Prospectus provides the information a prospective investor ought to know before investing and should be retained for future reference. A Statement of Additional Information has been filed with the Securities and Exchange Commission dated November 6, 1995, which is incorporated herein by reference and can be obtained without charge by calling the Fund at the phone number listed above. THESE SECURITIES HAVE NOT BEEN APPROVED OR DISAPPROVED BY THE SECURITIES AND EXCHANGE COMMISSION OR ANY STATE SECURITIES COMMISSION NOR HAS THE SECURITIES AND EXCHANGE COMMISSION OR ANY STATE SECURITIES COMMISSION PASSED UPON THE ACCURACY OR ADEQUACY OF THIS PROSPECTUS. ANY REPRESENTATION TO THE CONTRARY IS A CRIMINAL OFFENSE. - 1 - SUMMARY OF FUND EXPENSES The tables below are provided to assist an investor in understanding the direct and indirect expenses that an investor may incur as a shareholder in the Fund. The expense information is based on estimated amounts for the current fiscal year. The expenses are expressed as a percentage of average net assets. The Example should not be considered a representation of future Fund performance or expenses, both of which may vary. Shareholders should be aware that the Fund is a no-load fund and, accordingly, a shareholder does not pay any sales charge or commission upon purchase or redemption of shares of the Fund. In addition, the Fund does not have a 12b-1 Plan. Unlike most other mutual funds, the Fund does not pay directly for transfer agency, pricing, custodial, auditing or legal services, nor does it pay directly any general administrative or other significant operating expenses. The Adviser pays all of the expenses of the Fund except brokerage, taxes, interest, fees and expenses of non-interested person trustees and extraordinary expenses. Shareholder Transaction Expenses Sales Load Imposed on Purchases................................... NONE Sales Load Imposed on Reinvested Dividends........................ NONE Deferred Sales Load............................................... NONE Redemption Fees................................................... NONE Exchange Fees..................................................... NONE Annual Fund Operating Expenses (as a percentage of average net assets) (1) Management Fees................................................... 1.50% 12b-1 Charges..................................................... NONE Other Expenses (2) ............................................... 0.00% Total Fund Operating Expenses..................................... 1.50% 1 The Fund's total operating expenses are equal to the management fee paid to the Adviser because the Adviser pays all of the Fund's operating expenses (except as described in footnote 2). 2 The Fund estimates that other expenses (fees and expenses of the trustees who are not "interested persons" as defined in the Investment Company Act) will be .00032 of 1% of average net assets for the first fiscal year. The tables above are provided to assist an investor in understanding the direct and indirect expenses that an investor may incur as a shareholder in the Fund. Example You would pay the following expenses on a $1,000 investment, assuming (1) 5% annual return and (2) redemption at the end of each time period: 1 Year 3 Years $15 $47 - 2 - THE FUND Carl Domino Equity Income Fund (the "Fund") was organized as a series of AmeriPrime Funds, an Ohio business trust (the "Trust"), on August 8, 1995, and commenced operations on November 6, 1995. This prospectus offers shares of the Fund and each share represents an undivided, proportionate interest in the Fund. The investment adviser to the Fund is Carl Domino Associates, L.P. (the "Adviser"). INVESTMENT OBJECTIVE AND STRATEGIES The investment objective of the Fund is to provide long term growth of capital together with current income. The Fund seeks to achieve its objective by investing primarily in equity securities which the Adviser believes offer less downside risk and volatility than the S&P 500 Index. In making investments for the Fund, the Adviser uses a disciplined, conservative, value and yield strategy, consistent with capital preservation. The Adviser will particularly seek to purchase stocks of companies which, in its estimation, are undervalued due to special circumstances which the Adviser believes are temporary. As the Fund will primarily invest in dividend-paying common stocks, it is expected that the Fund will generate a combination of current income and long term capital appreciation. The Adviser generally will select stocks with above average dividend yield, which the Adviser believes will enhance the Fund's stability and reduce market risk. The Adviser seeks to further limit investment risk by diversifying the Fund's investments across a broad range of industries and companies, and by investing primarily in larger, more established companies. The Adviser has been managing equity income accounts for its institutional clients since 1987. The performance of the accounts with investment objectives, policies and strategies substantially similar to those of the Fund appears below. The data is provided to illustrate past performance of the Adviser in managing such accounts, as compared to the S&P 500 Index. The persons responsible for the performance of the accounts are the same as those responsible for the investment management of the Fund. As of December 31, 1995, the assets in those accounts totaled approximately $443 million. Summary of Carl Domino Associates, L.P. Annual Investment Returns* Period Domino S&P 500 1987 (from June 30, 1987 Inception) -11.30% -17.43% 1988 21.68% 16.57% 1989 25.25% 31.65% 1990 - 6.91% - 3.14% 1991 25.47% 30.45% 1992 8.55% 7.62% 1993 13.16% 10.06% 1994 4.36% 1.30% 1995 35.90% 37.54% - -------- * The Carl Domino Associates, L.P. performance is the time-weighted, dollar- weighted average total return associated with a composite of equity income accounts having objectives similar to the Fund, and is unaudited. The - 3 - composite does not include non-institutional accounts (those with assets less than $5,000,000) and non-discretionary accounts because the nature of those accounts make them inappropriate for purposes of comparison. Results after June 30, 1988 include the reinvestment of income on an accrual basis, while prior period results include the reinvestment of income on a cash basis. Performance figures reflected are net of management fees and net of all expenses, including transaction costs and commissions. Results include the reinvestment of dividends and capital gains. The presentation of the performance composite complies with the Performance Presentation Standards of the Association for Investment Management and Research (AIMR). The S&P 500 Index is a widely recognized, unmanaged index of market activity based upon the aggregate performance of a selected portfolio of publicly traded common stocks, including monthly adjustments to reflect the reinvestment of dividends and other distributions. The S&P 500 Index reflects the total return of securities comprising the Index, including changes in market prices as well as accrued investment income, which is presumed to be reinvested. Performance figures for the S&P 500 Index do not reflect deduction of transaction costs or expenses, including management fees. The performance of the accounts managed by the Adviser should not be considered indicative of future performance of the Fund. Results may differ because of, among other things, differences in brokerage commissions, account expenses, including management fees, the size of positions taken in relation to account size and diversification of securities, timing of purchases and sales, availability of cash for new investments and the private character of accounts compared with the public character of the Fund. In addition, the results for different periods may vary. Under normal circumstances, at least 65% of the total assets of the Fund will be invested in income producing equity securities. The Adviser generally intends to stay fully invested (subject to liquidity requirements and defensive purposes) in common stock and common stock equivalents (such as rights, warrants and securities convertible into common stocks) regardless of the movement of stock prices. However, the Fund may invest in preferred stocks, bonds, corporate debt and U.S. government obligations to maintain liquidity or pending investment in equity securities. Most equity securities in the Fund's portfolio are listed on a major stock exchange or traded over-the-counter. While the Fund ordinarily will invest in common stocks of U.S. companies, it may invest in foreign companies. For temporary defensive purposes under abnormal market or economic conditions, the Fund may hold all or a portion of its assets in money market instruments, cash equivalents or U.S. government repurchase agreements. The Fund may also invest in such instruments at any time to maintain liquidity or pending selection of investments in accordance with its policies. As all investment securities are subject to inherent market risks and fluctuations in value due to earnings, economic and political conditions and other factors, the Fund cannot give any assurance that its investment objective will be achieved. In addition, you should be aware that the Fund has no operating history. Rates of total return quoted by the Fund may be higher or lower than past quotations, and there can be no assurance that any rate of total return will be maintained. See "Investment Policies and Techniques and Risk Considerations" for a more detailed discussion of the Fund's investment practices. HOW TO INVEST IN THE FUND Shares of the Fund are sold on a continuous basis, and you may invest any amount you choose, as often as you wish, subject to a minimum initial investment of $2,000 and minimum subsequent investments of $100 ($50 for IRAs). - 4 - Initial Purchase By Mail - You may purchase shares of the Fund by completing and signing the investment application form which accompanies this Prospectus and mailing it, in proper form, together with a check (subject to the above minimum amounts) made payable to Carl Domino Equity Income Fund, and sent by mail or overnight delivery to: Carl Domino Equity Income Fund c/o American Data Services, Inc. 24 West Carver Street, 2nd Floor Huntington, New York 11743 Your purchase of shares of the Fund will be effected at the next share price calculated after receipt of your investment. By Wire - You may also purchase shares of the Fund by wiring federal funds from your bank, which may charge you a fee for doing so. If money is to be wired, you must call the Transfer Agent at 800-506-9922 to set up your account and obtain an account number. You should be prepared at that time to provide the information on the application. Then, you should provide your bank with the following information for purposes of wiring your investment: Star Bank, N.A. Cinti/Trust ABA #0420-0001-3 Attn: Carl Domino Equity Income Fund D.D.A. # 483885554 Account Name _________________ (write in shareholder name) For the Account # ______________ (write in account number) You are required to mail a signed application to the Custodian at the above address in order to complete your initial wire purchase. Wire orders will be accepted only on a day on which the Fund and the Custodian and Transfer Agent are open for business. A wire purchase will not be considered made until the wired money is received and the purchase is accepted by the Fund. Any delays which may occur in wiring money, including delays which may occur in processing by the banks, are not the responsibility of the Fund or the Transfer Agent. There is presently no fee for the receipt of wired funds, but the right to charge shareholders for this service is reserved by the Fund. Additional Investments You may purchase additional shares of the Fund at any time (subject to minimum investment requirements) by mail, wire, or automatic investment. Each additional mail purchase request must contain your name, the name of your account(s), your account number(s), and the name of the Fund. Checks should be made payable to Carl Domino Equity Income Fund and should be sent as follows: U.S. Mail: Carl Domino Equity Income Fund P.O. Box 641081 Cincinnati, Ohio 45264 Overnight: Carl Domino Equity Income Fund c/o Star Bank, N.A. Mutual Fund Custody Dept. 425 Walnut St. M.L. 6118 Cincinnati, Ohio 45202 A bank wire should be sent as outlined above. Tax Sheltered Retirement Plans Since the Fund is oriented to longer term investments, shares of the Fund may be an appropriate investment medium for tax sheltered retirement plans, including: individual retirement plans (IRAs); simplified employee pensions (SEPs); 401(k) plans; qualified corporate pension and profit sharing plans (for employees); tax deferred investment plans (for employees of public school systems and certain types of charitable organizations); and other qualified retirement plans. You should contact the Transfer Agent for the procedure to open an IRA or SEP plan, - 5 - as well as more specific information regarding these retirement plan options. Consultation with an attorney or tax adviser regarding these plans is advisable. Custodial fees for an IRA will be paid by the shareholder by redemption of sufficient shares of the Fund from the IRA unless the fees are paid directly to the IRA custodian. You can obtain information about the IRA custodial fees from the Transfer Agent. Other Purchase Information Dividends begin to accrue after you become a shareholder. The Fund does not issue share certificates. All shares are held in non-certificate form registered on the books of the Fund and the Fund's Transfer Agent for the account of the shareholder. The rights to limit the amount of purchases and to refuse to sell to any person are reserved by the Fund. If your check or wire does not clear, you will be responsible for any loss incurred by the Fund. If you are already a shareholder, the Fund can redeem shares from any identically registered account in the Fund as reimbursement for any loss incurred. You may be prohibited or restricted from making future purchases in the Fund. HOW TO REDEEM SHARES All redemptions will be made at the net asset value determined after the redemption request has been received by the Transfer Agent in proper order. Shareholders may receive redemption payments in the form of a check or federal wire transfer. The proceeds of the redemption may be more or less than the purchase price of your shares, depending on the market value of the Fund's securities at the time of your redemption. There is no charge for wire redemptions; however, the Fund reserves the right to charge for this service. Any charges for wire redemptions will be deducted from the shareholder's Fund account by redemption of shares. By Mail - You may redeem any part of your account in the Fund at no charge by mail. Your request should be sent to: Carl Domino Equity Income Fund c/o American Data Services, Inc. 24 West Carver Street Huntington, New York 11743 "Proper order" means your request for a redemption must include your letter of instruction, including the Fund name, account number, account name(s), the address and the dollar amount or number of shares you wish to redeem. This request must be signed by all registered share owner(s) in the exact name(s) and any special capacity in which they are registered. For all redemptions, the Fund requires that signatures be guaranteed by a bank or member firm of a national securities exchange. Signature guarantees are for the protection of shareholders. At the discretion of the Fund or American Data Services, Inc., a shareholder, prior to redemption, may be required to furnish additional legal documents to insure proper authorization. By Telephone - You may redeem any part of your account in the Fund by calling the Transfer Agent at 800-506-9922. You must first complete the Optional Telephone Redemption and Exchange section of the investment application to institute this option. The Fund, the Transfer Agent and the Custodian are not liable for following redemption or exchange instructions communicated by telephone that they reasonably believe to be genuine. However, if they do not employ reasonable procedures to confirm that telephone instructions are genuine, they may be liable for any losses due to unauthorized or fraudulent instructions. Proce-dures employed may include recording telephone instructions and requiring a form of personal identification from the caller. The telephone redemption and exchange procedures may be terminated at any time by the Fund or the Transfer Agent. During periods of extreme market activity it is possible that shareholders may encounter some difficulty in telephoning the - 6 - Fund, although neither the Fund nor the Transfer Agent has ever experienced difficulties in receiving and in a timely fashion responding to telephone requests for redemptions or exchanges. If you are unable to reach the Fund by telephone, you may request a redemption or exchange by mail. Additional Information - If you are not certain of the requirements for a redemption please call the Transfer Agent at 800-506-9922. Redemptions specifying a certain date or share price cannot be accepted and will be returned. You will be mailed the proceeds on or before the fifth business day following the redemption. However, payment for redemption made against shares purchased by check will be made only after the check has been collected, which normally may take up to fifteen days. Also, when the New York Stock Exchange is closed (or when trading is restricted) for any reason other than its customary weekend or holiday closing or under any emergency circumstances, as determined by the Securities and Exchange Commission, the Fund may suspend redemptions or postpone payment dates. Because the Fund incurs certain fixed costs in maintaining shareholder accounts, the Fund reserves the right to require any shareholder to redeem all of his or her shares in the Fund on 30 days' written notice if the value of his or her shares in the Fund is less than $2,000 due to redemption, or such other minimum amount as the Fund may determine from time to time. An involuntary redemption constitutes a sale. You should consult your tax adviser concerning the tax consequences of involuntary redemptions. A shareholder may increase the value of his or her shares in the Fund to the minimum amount within the 30 day period. Each share of the Fund is subject to redemption at any time if the Board of Trustees determines in its sole discretion that failure to so redeem may have materially adverse consequences to all or any of the shareholders of the Fund. SHARE PRICE CALCULATION The value of an individual share in the Fund (the net asset value) is calculated by dividing the total value of the Fund's investments and other assets (including accrued income), less any liabilities (including estimated accrued expenses), by the number of shares outstanding, rounded to the nearest cent. Net asset value per share is determined as of the close of the New York Stock Exchange (4:00 p.m., Eastern time) on each day that the exchange 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 net asset value per share of the Fund will fluctuate. Securities which are traded on any exchange or on the NASDAQ over-the-counter market are valued at the last quoted sale price. Lacking a last sale price, a security is valued at its last bid price except when, in the Adviser's opinion, the last bid price does not accurately reflect the current value of the security. All other securities for which over-the-counter market quotations are readily available are valued at their last bid price. When market quotations are not readily available, when the Adviser determines the last bid price does not accurately reflect the current value or when restricted securities are being valued, such securities are valued as determined in good faith by the Adviser, subject to review of the Board of Trustees of the Trust. Fixed income securities generally are valued by using market quotations, but may be valued on the basis of prices furnished by a pricing service when the Adviser believes such prices accurately reflect the fair market value of such securities. A pricing service utilizes electronic data processing techniques based on yield spreads relating to securities with similar characteristics to determine prices for normal institutional-size trading units of debt securities without regard to sale or bid prices. When prices are not readily available from a pricing service, or when restricted or illiquid securities are being valued, - 7 - securities are valued at fair value as determined in good faith by the Adviser, subject to review of the Board of Trustees. Short term investments in fixed income securities with maturities of less than 60 days when acquired, or which subsequently are within 60 days of maturity, are valued by using the amortized cost method of valuation, which the Board has determined will represent fair value. DIVIDENDS AND DISTRIBUTIONS The Fund intends to distribute substantially all of its net investment income as dividends to its shareholders on an annual basis, and intends to distribute its net long term capital gains and its net short term capital gains at least once a year. In the absence of written instructions otherwise, income dividends and capital gain distributions are automatically reinvested in additional shares at the net asset value per share on the distribution date. An election to receive a cash payment of dividends and/or capital gain distributions may be made in the application to purchase shares or by separate written notice to the Transfer Agent. Shareholders will receive a confirmation statement reflecting the payment and reinvestment of dividends and summarizing all other transactions. If cash payment is requested, a check normally will be mailed within five business days after the payable date. If you withdraw your entire account, all dividends accrued to the time of withdrawal, including the day of withdrawal, will be paid at that time. You may elect to have distributions on shares held in IRAs and 403(b) plans paid in cash only if you are 59 1/2 years old or permanently and totally disabled or if you otherwise qualify under the applicable plan. TAXES The Fund intends to qualify each year as a "regulated investment company" under 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 it distributes substantially all of its net investment income and any realized capital gains. For federal income tax purposes, dividends paid by the Fund from ordinary income are taxable to shareholders as ordinary income, but may be eligible in part for the dividends received deduction for corporations. Pursuant to the Tax Reform Act of 1986 (the "Tax Reform Act"), all distributions of net short-term capital gains to individuals are taxed at the same rate as ordinary income. All distributions of net capital gains to corporations are taxed at regular corporate rates. Any distributions designated as being made from net realized long term capital gains are taxable to shareholders as long term capital gains regardless of the holding period of the shareholder. The Fund will mail to each shareholder after the close of the calendar year a statement setting forth the federal income tax status of distributions made during the year. Dividends and capital gains distributions may also be subject to state and local taxes. Shareholders are urged to consult their own tax advisers regarding specific questions as to federal, state or local taxes and the tax effect of distributions and withdrawals from the Fund. On the application or other appropriate form, the Fund will request the shareholder's certified taxpayer identification number (social security number for individuals) and a certification that the shareholder is not subject to backup withholding. Unless the shareholder provides this information, the Fund will be required to withhold and remit to the U.S. Treasury 31% of the dividends, distributions and redemption proceeds payable to the shareholder. Shareholders should be aware that, under regulations promulgated by the Internal Revenue Service, the Fund may be fined $50 annually for each account for which a certified taxpayer identification number is not provided. In the event that such a fine is imposed with respect to a specific account in any year, the Fund may make a corresponding charge against the account. - 8 - OPERATION OF THE FUND The Fund is a diversified series of AmeriPrime Funds, an open-end management investment company organized as an Ohio business trust on August 8, 1995. The Board of Trustees supervises the business activities of the Fund. Like other mutual funds, the Fund retains various organizations to perform specialized services. The Fund retains Carl Domino Associates, L.P., 580 Village Blvd., Suite 225, West Palm Beach, Florida 33409 (the "Adviser") to manage the Fund's investments. The Adviser provides equity, balanced and fixed income portfolio management services to a select group of corporations, institutions, foundations, trusts and high net worth individuals. The Adviser is a limited partnership organized in Delaware and its general partner is Carl Domino, Inc. The controlling shareholder of Carl Domino, Inc. is Carl J. Domino. Mr. Domino is primarily responsible for the day-to-day management of the Fund's portfolio. A graduate of Florida State University in 1966 with a B.S. degree in accounting (Cum Laude) he received an MBA from Harvard Business School in 1972 and joined a national money management firm. During his 12 year association with Delaware Investment Advisers he was Chairman of the Investment Strategy Committee for seven years and personally managed over $1 billion. Carl Domino Associates, L.P. has been providing portfolio management services since its founding in 1987. Mr. Domino, a portfolio analyst for over 20 years, has been quoted in the press, is regularly interviewed by the Wall Street Transcript and appears frequently on the Public Education Channel's Inside Money program. The Fund is authorized to pay the Adviser a fee equal to an annual average rate of 1.50% of its average daily net assets. The Adviser pays all of the operating expenses of the Fund except brokerage, taxes, interest, fees and expenses of non-interested person trustees and extraordinary expenses. The rate of the advisory fees paid by most investment companies to their investment advisers is lower than the rate of the advisory fees paid by the Fund. In this regard, it should be noted that most investment companies pay their own operating expenses directly, while the Fund's expenses, except those specified above, are paid by the Adviser. The Fund retains AmeriPrime Financial Services, Inc. (the "Administrator") to manage the Fund's business affairs and provide the Fund with administrative services, including all regulatory reporting and necessary office equipment, personnel and facilities. The Administrator receives a monthly fee from the Adviser equal to an annual average rate of 0.10% of the Fund's average daily net assets up to fifty million dollars, 0.075% of the Fund's average daily net assets from fifty to one hundred million dollars and 0.050% of the Fund's average daily net assets over one hundred million dollars (subject to a minimum annual payment of $30,000). In addition, the Adviser will reimburse the Administrator for organizational expenses advanced by the Administrator. The Fund retains American Data Services, Inc., 24 West Carver Street, Huntington, New York 11743 (the "Trans-fer Agent") to serve as transfer agent, dividend paying agent and shareholder service agent. The Trust retains AmeriPrime Financial Securities, Inc., 1793 Kingswood Drive, Suite 200, Southlake, Texas 76092 (the "Distributor") to act as the principal distributor of the Fund's shares. Kenneth D. Trumpfheller, officer and sole shareholder of the Administrator and the Distributor, is an officer and trustee of the Trust. The services of the Administrator, Transfer Agent and Distributor are operating expenses paid by the Adviser. Consistent with the Rules of Fair Practice of the National Association of Securities Dealers, Inc., and subject to its obligation of seeking best qualitative execution, the Adviser may give consideration to sales of shares of the Fund as a factor in the selection of brokers and dealers to execute portfolio transactions. The Adviser (not the Fund) may pay certain financial institutions (which may include banks, securities dealers and other industry - 9 - professionals) a "servicing fee" for performing certain administrative functions for Fund shareholders to the extent these institutions are allowed to do so by applicable statute, rule or regulation. INVESTMENT POLICIES AND TECHNIQUES AND RISK CONSIDERATIONS This section contains general information about various types of securities and investment techniques that the Fund may purchase or employ. Equity Securities Equity securities consist of common stock, preferred stock and common stock equivalents (such as convertible preferred stock, rights and warrants). Equity securities also include common stocks and common stock equivalents of domestic real estate investment trusts and other companies which operate as real estate corporations or which have a significant portion of their assets in real estate. The Fund will not acquire any direct ownership of real estate. The Fund may invest in foreign equity securities, including, but not limited to, the purchase of American Depository Receipts. American Depository Receipts are dollar-denominated receipts that are generally issued in registered form by domestic banks, and represent the deposit with the bank of a security of a foreign issuer. To the extent that the Fund does invest in foreign securities, such investments may be subject to special risks, such as changes in restrictions on foreign currency transactions and rates of exchange, and changes in the administrations or economic and monetary policies of foreign governments. The Fund will not invest more than 5% of its net assets at the time of purchase in foreign securities which are not American Depository Receipts. Fixed Income Securities The Fund may invest in fixed income securities. Fixed income securities include corporate debt securities, U.S. government securities, mortgage-related securities and participation interests in such securities. Fixed income securities are generally considered to be interest rate sensitive, which means that their value will generally decrease when interest rates rise and increase when interest rates fall. Securities with shorter maturities, while offering lower yields, generally provide greater price stability than longer term securities and are less affected by changes in interest rates. Corporate Debt Securities - Corporate debt securities are long and short term debt obligations issued by companies (such as publicly issued and privately placed bonds, notes and commercial paper). The Fund will only invest in corporate debt securities rated A or higher by Standard & Poor's Corporation or Moody's Investors Services, Inc. U.S. Government Obligations - U.S. government obligations may be backed by the credit of the government as a whole or only by the issuing agency. U.S. Treasury bonds, notes, and bills and some agency securities, such as those issued by the Federal Housing Administration and the Government National Mortgage Association (GNMA), are backed by the full faith and credit of the U.S. government as to payment of principal and interest and are the highest quality government securities. Other securities issued by U.S. government agencies or instrumentalities, such as securities issued by the Federal Home Loan Banks and the Federal Home Loan Mortgage Corporation, are supported only by the credit of the agency that issued them, and not by the U.S. government. Securities issued by the Federal Farm Credit System, the Federal Land Banks, and the Federal National Mortgage Association (FNMA) are supported by the agency's right to borrow money from the U.S. Treasury under certain circumstances, but are not backed by the full faith and credit of the U.S. government. Mortgage-Related Securities - Mortgage-related securities include securities representing interests in a pool of mortgages. These securities, including - 10 - securities issued by FNMA and GNMA, provide investors with payments consisting of both interest and principal as the mortgages in the underlying mortgage pools are repaid. Pools of mortgage loans are assembled for sale to investors (such as the Fund) by various governmental, government-related and private organizations, such as dealers. Unscheduled or early payments on the underlying mortgages may shorten the securities' effective maturities. Other types of securities representing interests in a pool of mortgage loans are known as collateralized mortgage obligations (CMOs) and real estate mortgage investment conduits (REMICs). CMOs and REMICs are debt instruments collateralized by pools of mortgage loans or other mortgage-backed securities. The average life of securities representing interests in pools of mortgage loans is likely to be substantially less than the original maturity of the mortgage pools as a result of prepayments or foreclosures of such mortgages. Prepayments are passed through to the registered holder with the regular monthly payments of principal and interest, and have the effect of reducing future payments. To the extent the mortgages underlying a security representing an interest in a pool of mortgages are prepaid, a Fund may experience a loss (if the price at which the respective security was acquired by the Fund was at a premium over par, which represents the price at which the security will be redeemed upon prepayment). In addition, prepayments of such securities held by a Fund will reduce the share price of the Fund to the extent the market value of the securities at the time of prepayment exceeds their par value. Furthermore, the prices of mortgage-related securities can be significantly affected by changes in interest rates. Prepayments may occur with greater frequency in periods of declining mortgage rates because, among other reasons, it may be possible for mortgagors to refinance their outstanding mortgages at lower interest rates. In such periods, it is likely that any prepayment proceeds would be reinvested by a Fund at lower rates of return. Investment Techniques The Fund may invest up to 5% of its net assets in repurchase agreements fully collateralized by U.S. Government obligations. The Fund may buy and sell securities on a when-issued or delayed delivery basis, with payment and delivery taking place at a future date, but investment in such securities may not exceed 5% of the Fund's net assets. Also limited to 5% of the Fund's net assets is the Fund's investment in STRIPs (Separate Trading of Registered Interest and Principal of Securities). The Federal Reserve creates STRIPs by separating the coupon payments and the principal payments from the outstanding Treasury security and selling them as individual securities. Loans of Portfolio Securities - The Fund may make short and long term loans of its portfolio securities. Under the lending policy authorized by the Board of Trustees and implemented by the Adviser in response to requests of broker-dealers or institutional investors which the Adviser deems qualified, the borrower must agree to maintain collateral, in the form of cash or U.S. government obligations, with the Fund on a daily mark-to-market basis in an amount at least equal to 100% of the value of the loaned securities. The Fund will continue to receive dividends or interest on the loaned securities and may terminate such loans at any time or reacquire such securities in time to vote on any matter which the Board of Trustees determines to be serious. With respect to loans of securities, there is the risk that the borrower may fail to return the loaned securities or that the borrower may not be able to provide additional collateral. General The Fund may invest in other investment companies, time deposits, certificates of deposit or banker's acceptances, and may buy and write put and call options, provided the Fund's investment in each does not exceed 5% of its net assets. The Fund will not invest more than 5% of its net assets in illiquid securities, including repurchase agreements maturing in more than seven days. - 11 - GENERAL INFORMATION Fundamental Policies. The investment limitations set forth in the Statement of Additional Information as fundamental policies may not be changed without the affirmative vote of the majority of the outstanding shares of the fund. The investment objective of the Fund may be changed without the affirmative vote of a majority of the outstanding shares of the Fund. Any such change may result in the Fund having an investment objective different from the objective which the shareholders considered appropriate at the time of investment in the Fund. Portfolio Turnover. The Fund does not intend to purchase or sell securities for short term trading purposes. The Fund will, however, sell any portfolio security (without regard to the length of time it has been held) when the Adviser believes that market conditions, creditworthiness factors or general economic conditions warrant such action. It is anticipated that the Fund will have a portfolio turnover rate of less than 100%. Shareholder Rights. Any Trustee of the Trust may be removed by vote of the shareholders holding not less than two-thirds of the outstanding shares of the Trust. The Trust does not hold an annual meeting of shareholders. When matters are submitted to shareholders for a vote, each shareholder is entitled to one vote for each whole share he owns and fractional votes for fractional shares he owns. All shares of the Fund have equal voting rights and liquidation rights. Prior to the offering made by this Prospectus, AmeriPrime Financial Securities, Inc. purchased for investment all of the outstanding shares of the Fund and as a result, AmeriPrime Financial Securities, Inc. and its controlling shareholder Kenneth D. Trumpfheller may be deemed to control the Fund. PERFORMANCE INFORMATION The Fund may periodically advertise "average annual total return." The "average annual total return" of the Fund refers to the average annual compounded rate of return over the stated period that would equate an initial amount invested at the beginning of a stated period to the ending redeemable value of the investment. The calcula-tion of "average annual total return" assumes the reinvestment of all dividends and distributions. The Fund may also periodically advertise its total return over various periods in addition to the value of a $10,000 investment (made on the date of the initial public offering of the Fund's shares) as of the end of a specified period. The "total return" for the Fund refers to the percentage change in the value of an account between the beginning and end of the stated period, assuming no activity in the account other than reinvestment of dividends and capital gains distributions. The Fund may also include in advertisements data comparing performance with other mutual funds as reported in non-related investment media, published editorial comments and performance rankings compiled by independent organizations and publications that monitor the performance of mutual funds (such as Lipper Analytical Services, Inc., Morningstar, Inc., Fortune or Barron's). Performance information may be quoted numerically or may be presented in a table, graph or other illustration. In addition, Fund performance may be compared to well-known indices of market performance including the Standard & Poor's (S&P) 500 Index or the Dow Jones Industrial Average. The advertised performance data of the Fund is based on historical performance and is not intended to indicate future performance. Rates of total return quoted by the Fund may be higher or lower than past quotations, and there can be no assurance that any rate of total return will be maintained. The principal value of an investment in the Fund will fluctuate so that a shareholder's shares, when redeemed, may be worth more or less than the shareholder's original investment. - 12 - Investment Adviser Administrator Carl Domino Associates, L.P. AmeriPrime Financial Services, Inc. 580 Village Blvd., Suite 225 1793 Kingswood Drive, Suite 200 West Palm Beach, Florida 33409 Southlake, Texas 76092 Custodian (subsequent purchases) Distributor Star Bank, N.A. AmeriPrime Financial Securities, Inc. P.O. Box 641081 1793 Kingswood Drive, Suite 200 Cincinnati, Ohio 45264 Southlake, Texas 76092 Transfer Agent (initial purchases and all redemption requests) Auditors American Data Services, Inc. McCurdy & Associates CPA's, Inc. 24 West Carver Street 27955 Clemens Road Huntington, New York 11743 Westlake, Ohio 44145 No person has been authorized to give any information or to make any representations, other than those contained in this Prospectus, in connection with the offering contained in this Prospectus, and if given or made, such information or representations must not be relied upon as being authorized by the Fund. This Prospectus does not constitute an offer by the Fund to sell its shares in any state to any person to whom it is unlawful to make such offer in such state. - 13 - TABLE OF CONTENTS Page SUMMARY OF FUND EXPENSES........................ 2 Shareholder Transaction Expenses................ 2 Annual Fund Operating Expenses.................. 2 THE FUND........................................ 3 INVESTMENT OBJECTIVE AND STRATEGIES................................ 3 HOW TO INVEST IN THE FUND....................... 4 Initial Purchase............................. 5 By Mail...................................... 5 By Wire...................................... 5 Additional Investments....................... 5 Tax Sheltered Retirement Plans............... 5 Other Purchase Information................... 6 HOW TO REDEEM SHARES............................ 6 By Mail....................................... 6 By Telephone.................................. 6 Additional Information........................ 7 SHARE PRICE CALCULATION......................... 7 DIVIDENDS AND DISTRIBUTIONS..................... 8 TAXES........................................... 8 OPERATION OF THE FUND........................... 9 INVESTMENT POLICIES AND TECHNIQUES AND RISK CONSIDERATIONS.......................10 Equity Sequrities...............................10 Fixed Income Securities.........................10 Corporate Debt Securities.......................10 U.S. Government Obligations.....................10 Mortgage-Related Securities.....................10 Investment Techniques...........................11 Loans of Portfolio Securities...................11 General.........................................11 GENERAL INFORMATION.............................12 Fundamental Policies............................12 Portfolio Turnover..............................12 Shareholder Rights..............................12 PERFORMANCE INFORMATION.........................12 CARL DOMINO EQUITY INCOME FUND PROSPECTUS & APPLICATION November 6, 1995 AIT VISION U.S. EQUITY PORTFOLIO Supplement Dated June 28, 1996 To Prospectus Dated November 6, 1995 The following condensed supplementary financial information for the period ended April 30, 1996, is derived from the unaudited financial statements of the Fund. The unaudited financial statements of the Fund are included in the Statement of Additional Information.
AIT VISION U.S. EQUITY PORTFOLIO FINANCIAL HIGHLIGHTS For a share outstanding throughout the period from November 6, 1995 (Commencement of Operations) through April 30, 1996 (Unaudited) Net asset value- beginning of period........................... $10.00 -------- Income from investment operations: Net investment income/(loss)................................... (.04) Net gain/(loss) on investments both realized and unrealized.... 1.14 -------- Total from investment operations............................... 1.10 -------- Less distributions: Dividends from net investment income........................... 0 Dividends from capital gains................................... 0 -------- Net asset value - end of period................................. $11.10 ======== Total Return**................................................. 32.47% Ratio/supplemental data: Net assets, end of period (in 000's)........................... 500 Ratio of expenses to average net assets**...................... 2.07% Ratio of net investment income to average net assets**......... (1.15)% Portfolio turnover rate........................................ 81.56% Average Commission rate paid................................... .0471 ** Annualized
The following should be read in conjunction with the section entitled "General Information" on page 12 of the Prospectus: As of May 31, 1996, LBS Capital Management Resources Trust Company may be deemed to control the Fund as a result of its beneficial ownership of shares of the Fund. AIT VISION U.S. EQUITY PORTFOLIO PROSPECTUS & APPLICATION November 6, 1995 311 Park Place Blvd., Suite 330 Clearwater, Florida 34619 For Information, Shareholder Services and Requests: (800) 507-9922 AIT Vision U.S. Equity Portfolio (the "Fund") is a mutual fund whose investment objective is to provide long term growth of capital. The Fund is designed by its Adviser, LBS Capital Management, Inc., to be a core equity investment vehicle. Characteristics of individual companies considered by the Adviser in the securities selection process will include traditional growth as well as fundamental value measures, among others. The process of evaluating securities is quantitatively rigorous, using state of the art advanced computational techniques developed by the Adviser. The Fund is one of the mutual funds comprising AmeriPrime Funds, an open-end management investment company, and is distributed by AmeriPrime Financial Securities, Inc. This Prospectus provides the information a prospective investor ought to know before investing and should be retained for future reference. A Statement of Additional Information has been filed with the Securities and Exchange Commission dated November 6, 1995, which is incorporated herein by reference and can be obtained without charge by calling the Fund at the phone number listed above. THESE SECURITIES HAVE NOT BEEN APPROVED OR DISAPPROVED BY THE SECURITIES AND EXCHANGE COMMISSION OR ANY STATE SECURITIES COMMISSION NOR HAS THE SECURITIES AND EXCHANGE COMMISSION OR ANY STATE SECURITIES COMMISSION PASSED UPON THE ACCURACY OR ADEQUACY OF THIS PROSPECTUS. ANY REPRESENTATION TO THE CONTRARY IS A CRIMINAL OFFENSE. - 1 - SUMMARY OF FUND EXPENSES The tables below are provided to assist an investor in understanding the direct and indirect expenses that an investor may incur as a shareholder in the Fund. The expense information is based on estimated amounts for the current fiscal year. The expenses are expressed as a percentage of average net assets. The Example should not be considered a representation of future Fund performance or expenses, both of which may vary. Shareholder Transaction Expenses Maximum Sales Load Imposed on Purchases (as a percentage of offering price).................................... 4.0% Sales Load Imposed on Reinvested Dividends.......................... NONE Deferred Sales Load................................................. NONE Redemption Fees..................................................... NONE Exchange Fees....................................................... NONE Annual Fund Operating Expenses (as a percentage of average net assets) (1) Management Fees..................................................... 1.47% 12b-1 Charges....................................................... NONE Other Expenses...................................................... 0.00% (2) Total Fund Operating Expenses....................................... 1.47% 1 The Fund's total operating expenses are equal to the management fee paid to the Adviser because the Adviser pays all of the Fund's general administrative and significant operating expenses (including transfer agency, pricing, custodial and legal services) except brokerage, taxes, interest, fees and expenses for non-interested person trustees and extraordinary expenses. 2 The Fund estimates that other expenses (fees and expenses of the trustees who are not "interested persons" as defined in the Investment Company Act) will be .00032 of 1% of average net assets for the first fiscal year. The tables above are provided to assist an investor in understanding the direct and indirect expenses that an investor may incur as a shareholder in the Fund. Example You would pay the following expenses on a $1,000 investment, assuming (1) 5% annual return and (2) redemption at the end of each time period: 1 Year 3 Years $54 $85 - 2 - THE FUND AIT Vision U.S. Equity Portfolio (the "Fund") was organized as a series of AmeriPrime Funds, an Ohio business trust (the "Trust") on August 8, 1995, and commenced operations on November 6, 1995. This prospectus offers shares of the Fund and each share represents an undivided, proportionate interest in the Fund. The investment adviser to the Fund is LBS Capital Management, Inc. (the "Adviser"). INVESTMENT OBJECTIVE AND STRATEGIES The investment objective of the Fund is to provide long term growth of capital. The Adviser will utilize computer technology and financial databases to assist in the stock selection process. Characteristics of individual companies considered in the securities selection process will include traditional growth as well as fundamental value measures, among others. The process of evaluating securities is quantitatively rigorous, using state of the art advanced computational techniques developed by the Adviser. The Fund is designed by its Adviser to be a core equity investment vehicle. Under normal circumstances, at least 65% of the total assets of the Fund will be invested in U.S. equity securities. The Adviser generally intends to stay fully invested (subject to liquidity requirements and defensive purposes) in common stock and seeks to limit investment risk and diversify the Fund's portfolio by investing in companies in all capitalization ranges. Most equity securities in the Fund's portfolio are listed on a major stock exchange or traded over-the-counter. The Fund may also invest in fixed income securities (including repurchase agreements); may write covered call options on common stocks in the Fund's portfolio; may purchase call options; and may engage in short sales (if the Fund owns or has the right to obtain an equal amount of the security being sold.) See "Investment Policies and Techniques and Risk Considerations" for a more detailed discussion of the Fund's investment practices. For temporary defensive purposes under abnormal market or economic conditions, the Fund may invest all or a portion of its assets in money market instruments (including U.S. Treasury bills), securities of no-load registered investment companies and repurchase agreements fully collateralized by U.S. government obligations. The Fund may also invest in such instruments at any time to maintain liquidity or pending selection of investments in accordance with its policies. If the Fund acquires securities of another investment company, the shareholders of the Fund will be subject to additional management fees. As all investment securities are subject to inherent market risks and fluctuations in value due to earnings, economic and political conditions and other factors, the Fund cannot give any assurance that its investment objective will be achieved. In addition, you should be aware that the Fund has no operating history. Rates of total return quoted by the Fund may be higher or lower than past quotations, and there can be no assurance that any rate of total return will be maintained. See "Investment Policies and Techniques and Risk Considerations" for a more detailed discussion of the Fund's investment practices. HOW TO INVEST IN THE FUND Shares of the Fund are sold on a continuous basis, and you may invest any amount you choose, as often as you wish, subject to a minimum initial investment of $5,000 ($2,000 for retirement accounts). You may purchase additional shares through the Open Account Program described below. You may open an account and make an initial investment through securities dealers having a sales agreement with the Distributor. You may also make a direct initial investment by completing and signing the investment application form which accompanies this Prospectus and mailing it, in proper form, together with a check made payable to AIT Vision U.S. Equity Portfolio, and sent to the address listed below by either mail or overnight delivery. - 3 - Mail or overnight to: AIT Vision U.S. Equity Portfolio c/o American Data Services, Inc. 24 West Carver Street Huntington, New York 11743 Shares of the Fund are purchased at the public offering price. The public offering price is the next determined net asset value per share plus a sales load as shown in the following table. Sales Load as a % of: Dealer Reallowance Public Net as % of Offering Amount Public Offering Amount of Investment Price Invested Price Less than $100,000 4.00% 4.17% 4.00% $100,000 but less than $250,000 3.50 3.63 3.50 $250,000 but less than $500,000 2.50 2.56 2.50 $500,000 but less than $1,000,000 2.00 2.04 2.00 $1,000,000 or more None None None
Under certain circumstances, the Distributor may change the reallowance to Dealers. Dealers engaged in the sale of shares of the Fund may be deemed to be underwriters under the Securities Act of 1933. The Distributor retains the entire sales load on all direct initial investments in the Fund and on all investments in accounts with no designated dealer of record. Shares of the Fund are sold on a continuous basis at the public offering price next determined after receipt of a purchase order by the Trust. Purchase orders received by dealers prior to 4:00 p.m., Eastern time, on any business day and transmitted to the Distributor by 5:00 p.m., Eastern time, that day are confirmed at the public offering price determined as of the close of the regular session of trading on the New York Stock Exchange on that day. It is the responsibility of dealers to transmit properly completed orders so that they will be received by the Distributor by 5:00 p.m., Eastern time. Dealers may charge a fee for effecting purchase orders. Direct purchase orders received by 4:00 p.m., Eastern time, are confirmed at that day's public offering price. Direct investments received after 4:00 p.m. and others received from dealers after 5:00 p.m. are confirmed at the public offering price next determined on the following business day. Open Account Program After an initial investment, all investors are considered participants in the Open Account Program. The Open Account Program helps investors make additional purchases of the Fund over a period of years and permits automatic reinvestment of dividends and distributions of the Fund without a sales load. You may purchase additional shares of the Fund at any time (subject to minimum investments of $1,000) through your securities dealer, or directly from the Fund by mail or wire. If your securities dealer received concessions for selling shares of the Fund to you, such securities dealer will receive the concessions described above with respect to additional investments. Each additional mail purchase request must contain the name of your account and your account number. - 4 - Checks should be made payable to AIT Vision U.S. Equity Portfolio and should be sent as follows: U.S. Mail: AIT Vision U.S. Equity Portfolio P.O. Box 641083 Cincinnati, Ohio 45264 Overnight: AIT Vision U.S. Equity Portfolio c.o Star Bank, N.A. Mutual Fund Custody Dept. 425 Walnut St. M.L. 6118 Cincinnati, Ohio 45202 Under the Open Account Program, you may also purchase shares of the Fund by wiring federal funds from your bank, which may charge you a fee for doing so. If money is to be wired, you must call the Transfer Agent at (800) 507-9922 for instructions. Then, you should provide your bank with the following information for purposes of wiring your investment: Star Bank, N.A. Cinti/Trust ABA #0420-0001-3 Attn: AIT Vision U.S. Equity Portfolio D.D.A. # 483885604 Account Name _________________ (write in shareholder name) For Account # ______________ (write in account number) Wire orders will be accepted only on a day on which the Fund and the Custodian and Transfer Agent are open for business. A wire purchase will not be considered made until the wired money is received and the purchase is accepted by the Fund. Any delays which may occur in wiring money, including delays which may occur in processing by the banks, are not the responsibility of the Fund or the Transfer Agent. There is presently no fee for the receipt of wired funds, but the right to charge shareholders for this service is reserved by the Fund. Reduced Sales Load You may use the Right of Accumulation to combine the cost or current net asset value (whichever is higher) of your shares of the Fund with the amount of your current purchases in order to take advantage of the reduced sales load set forth in the table above. Purchases made pursuant to a Letter of Intent may also be eligible for the reduced sales loads. The minimum initial investment under a Letter of Intent is $10,000. Shareholders should contact the Transfer Agent for information about the Right of Accumulation and Letter of Intent. Purchases at Net Asset Value You may purchase shares of the Fund at net asset value when the payment for your investment represents the proceeds from the redemption of shares of any other mutual fund which has a front-end sales load. Your investment will qualify for this provision if the purchase price of the shares of the other fund included a sales load and the redemption occurred within one year of the purchase of such shares and no more than sixty days prior to your purchase of shares of the Fund. To make a purchase at net asset value pursuant to this provision, you must submit photocopies of the confirmations (or similar evidence) showing the purchase and redemption of shares of the other fund. Your payment may be made with the redemption check representing the proceeds of the shares redeemed, endorsed to the order of the Fund. The redemption of shares of the other fund is, for federal income tax purposes, a sale on which you may realize a gain or loss. These provisions may be modified or terminated at any time. Contact your securities dealer or the Fund for further information. Banks, bank trust departments and savings and loan associations, in their fiduciary capacity or for their own accounts, may also purchase shares of the Fund at net asset value. To the extent permitted by regulatory authorities, a - 5 - bank trust depart-ment may charge fees to clients for whose account it purchases shares at net asset value. Federal and state credit unions may also purchase shares at net asset value. Shares may be purchased at net asset value, subject to a minimum investment of $2,000, through a broker dealer or other financial institution authorized by the Distributor to hold shares in an omnibus account. Investors may be charged a fee by the broker dealer or other financial institution for this service. Shares may also be purchased at net asset value by investors who participate in certain broker dealer wrap fee investment programs. In addition, shares of the Fund may be purchased at net asset value by broker-dealers who have a sales agreement with the Distributor, and their registered personnel and employees, including members of the immediate families of such registered personnel and employees. Trustees, directors, officers and employees of the Trust, the Adviser or the Distributor, including members of the immediate family of such individuals and employee benefit plans established by such entities, may also purchase shares of the Fund at net asset value. Additional Information. For purposes of determining the applicable sales load, a purchaser includes an individual, his spouse and their children under the age of 21, purchasing shares for his or their own account; or a trustee or other fiduciary purchasing shares for a single fiduciary account although more than one beneficiary is involved; or employees of a common employer, provided that economies of scale are realized through remittances from a single source and quarterly confirmation of such purchases; or an organized group, provided that the purchases are made through a central administration, or a single dealer, or by other means which result in economy of sales effort or expense. Tax Sheltered Retirement Plans Since the Fund is oriented to longer term investments, shares of the Fund may be an appropriate investment medium for tax sheltered retirement plans, including: individual retirement plans (IRAs); simplified employee pensions (SEPs); 401(k) plans; qualified corporate pension and profit sharing plans (for employees); tax deferred investment plans (for employees of public school systems and certain types of charitable organizations); and other qualified retirement plans. You should contact the Transfer Agent for the procedure to open an IRA or SEP plan, as well as more specific information regarding these retirement plan options. Consultation with an attorney or tax adviser regarding these plans is advisable. Custodial fees for an IRA will be paid by the shareholder by redemption of sufficient shares of the Fund from the IRA unless the fees are paid directly to the IRA custodian. You can obtain information about the IRA custodial fees from the Transfer Agent. Other Purchase Information Dividends begin to accrue after you become a shareholder. The Fund does not issue share certificates. All shares are held in non-certificate form registered on the books of the Fund and the Fund's Transfer Agent for the account of the shareholder. The rights to limit the amount of purchases and to refuse to sell to any person are reserved by the Fund. If your check or wire does not clear, you will be responsible for any loss incurred by the Fund. If you are already a shareholder, the Fund can redeem shares from any identically registered account in the Fund as reimbursement for any loss incurred. You may be prohibited or restricted from making future purchases in the Fund. HOW TO REDEEM SHARES All redemptions will be made at the net asset value determined after the redemption request has been received by the Transfer Agent in proper order. Shareholders may receive redemption payments in the form of a check or federal - 6 - wire transfer. The proceeds of the redemption may be more or less than the purchase price of your shares, depending on the market value of the Fund's securities at the time of your redemption. A broker may charge a transaction fee for the redemption. Presently, there is no charge for wire redemptions; however, the Fund reserves the right to charge for this service. Any charges for wire redemptions will be deducted from the shareholder's Fund account by redemption of shares. By Mail - You may redeem any part of your account in the Fund at no charge by mail. Your request should be addressed to: AIT Vision U.S. Equity Portfolio c/o American Data Services, Inc. 24 West Carver Street Huntington, New York 11743 "Proper order" means your request for a redemption must include your letter of instruction, including the Fund name, account number, account name(s), the address and the dollar amount or number of shares you wish to redeem. This request must be signed by all registered share owner(s) in the exact name(s) and any special capacity in which they are registered. For all redemptions, the Fund requires that signatures be guaranteed by a bank or member firm of a national securities exchange. Signature guarantees are for the protection of shareholders. At the discretion of the Fund or American Data Services, Inc., a shareholder, prior to redemption, may be required to furnish additional legal documents to insure proper authorization. By Telephone - You may redeem any part of your account in the Fund by calling the Transfer Agent at (800) 507-9922. You must first complete the Optional Telephone Redemption and Exchange section of the investment application to institute this option. The Fund, the Transfer Agent and the Custodian are not liable for following redemption or exchange instructions communicated by telephone that they reasonably believe to be genuine. However, if they do not employ reasonable procedures to confirm that telephone instructions are genuine, they may be liable for any losses due to unauthorized or fraudulent instructions. Procedures employed may include recording telephone instructions and requiring a form of personal identification from the caller. The telephone redemption and exchange procedures may be terminated at any time by the Fund or the Transfer Agent. During periods of extreme market activity it is possible that shareholders may encounter some difficulty in telephoning the Fund, although neither the Fund nor the Transfer Agent has ever experienced difficulties in receiving and in a timely fashion responding to telephone requests for redemptions or exchanges. If you are unable to reach the Fund by telephone, you may request a redemption or exchange by mail. Additional Information - If you are not certain of the requirements for a redemption please call the Transfer Agent at (800) 507-9922. Redemptions specifying a certain date or share price cannot be accepted and will be returned. You will be mailed the proceeds on or before the fifth business day following the redemption. However, payment for redemption made against shares purchased by check will be made only after the check has been collected, which normally may take up to fifteen days. Also, when the New York Stock Exchange is closed (or when trading is restricted) for any reason other than its customary weekend or holiday closing or under any emergency circumstances, as determined by the Securities and Exchange Commission, the Fund may suspend redemptions or postpone payment dates. Because the Fund incurs certain fixed costs in maintaining shareholder accounts, the Fund reserves the right to require any shareholder to redeem all of his or her shares in the Fund on 30 days' written notice if the value of his or her - 7 - shares in the Fund is less than $5,000 due to redemption, or such other minimum amount as the Fund may determine from time to time. An involuntary redemption constitutes a sale. You should consult your tax adviser concerning the tax consequences of involuntary redemptions. A shareholder may increase the value of his or her shares in the Fund to the minimum amount within the 30 day period. Each share of the Fund is subject to redemption at any time if the Board of Trustees determines in its sole discretion that failure to so redeem may have materially adverse consequences to all or any of the shareholders of the Fund. SHARE PRICE CALCULATION The value of an individual share in the Fund (the net asset value) is calculated by dividing the total value of the Fund's investments and other assets (including accrued income), less any liabilities (including estimated accrued expenses), by the number of shares outstanding, rounded to the nearest cent. Net asset value per share is determined as of the close of the New York Stock Exchange (4:00 p.m., Eastern time) on each day that the exchange 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 net asset value per share of the Fund will fluctuate. Securities which are traded on any exchange or on the NASDAQ over-the-counter market are valued at the last quoted sale price. Lacking a last sale price, a security is valued at its last bid price except when, in the Adviser's opinion, the last bid price does not accurately reflect the current value of the security. All other securities for which over-the-counter market quotations are readily available are valued at their last bid price. When market quotations are not readily available, when the Adviser determines the last bid price does not accurately reflect the current value or when restricted securities are being valued, such securities are valued as determined in good faith by the Adviser, subject to review of the Board of Trustees of the Trust. Fixed income securities generally are valued by using market quotations, but may be valued on the basis of prices furnished by a pricing service when the Adviser believes such prices accurately reflect the fair market value of such securities. A pricing service utilizes electronic data processing techniques based on yield spreads relating to securities with similar characteristics to determine prices for normal institutional-size trading units of debt securities without regard to sale or bid prices. When prices are not readily available from a pricing service, or when restricted or illiquid securities are being valued, securities are valued at fair value as determined in good faith by the Adviser, subject to review of the Board of Trustees. Short term investments in fixed income securities with maturities of less than 60 days when acquired, or which subsequently are within 60 days of maturity, are valued by using the amortized cost method of valuation, which the Board has determined will represent fair value. DIVIDENDS AND DISTRIBUTIONS The Fund intends to distribute substantially all of its net investment income as dividends to its shareholders on an annual basis, and intends to distribute its net long term capital gains and its net short term capital gains at least once a year. Income dividends and capital gain distributions are automatically reinvested in additional shares at the net asset value per share on the distribution date. An election to receive a cash payment of dividends and/or capital gain distributions may be made in the application to purchase shares or by separate written notice to the Transfer Agent. Shareholders will receive a confirmation statement reflecting the payment and reinvestment of dividends and summarizing all other transactions. If cash payment is requested, a check normally will be mailed within five business days after the payable date. If you withdraw your entire account, all dividends accrued to the time of withdrawal, including the day of withdrawal, will be paid at that time. You may elect to have - 8 - distributions on shares held in IRAs and 403(b) plans paid in cash only if you are 59 1/2 years old or permanently and totally disabled or if you otherwise qualify under the applicable plan. TAXES The Fund intends to qualify each year as a "regulated investment company" under 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 it distributes substantially all of its net investment income and any realized capital gains. For federal income tax purposes, dividends paid by the Fund from ordinary income are taxable to shareholders as ordinary income, but may be eligible in part for the dividends received deduction for corporations. Pursuant to the Tax Reform Act of 1986 (the "Tax Reform Act"), all distributions of net short-term capital gains to individuals are taxed at the same rate as ordinary income. All distributions of net capital gains to corporations are taxed at regular corporate rates. Any distributions designated as being made from net realized long term capital gains are taxable to shareholders as long term capital gains regardless of the holding period of the shareholder. The Fund will mail to each shareholder after the close of the calendar year a statement setting forth the federal income tax status of distributions made during the year. Dividends and capital gains distributions may also be subject to state and local taxes. Shareholders are urged to consult their own tax advisers regarding specific questions as to federal, state or local taxes and the tax effect of distributions and withdrawals from the Fund. On the application or other appropriate form, the Fund will request the shareholder's certified taxpayer identification number (social security number for individuals) and a certification that the shareholder is not subject to backup withholding. Unless the shareholder provides this information, the Fund will be required to withhold and remit to the U.S. Treasury 31% of the dividends, distributions and redemption proceeds payable to the shareholder. Shareholders should be aware that, under regulations promulgated by the Internal Revenue Service, the Fund may be fined $50 annually for each account for which a certified taxpayer identification number is not provided. In the event that such a fine is imposed with respect to a specific account in any year, the Fund may make a corresponding charge against the account. OPERATION OF THE FUND The Fund is a diversified series of AmeriPrime Funds, an open-end management investment company organized as an Ohio business trust on August 8, 1995. The Board of Trustees supervises the business activities of the Fund. Like other mutual funds, the Fund retains various organizations to perform specialized services. The Fund retains LBS Capital Management, Inc., 311 Park Place Blvd., Suite 330, Clearwater, Florida 34619 (the "Adviser") to manage the Fund's investments. The Adviser develops and uses advanced computational quantitative techniques for money management. In addition to offering tactical overlay services to private individuals and institutions, the Adviser manages private investor and institutional funds in global asset allocation and individually managed accounts (equity). Dean S. Barr and Walter J. Loick are the controlling shareholders of the Adviser. Douglas W. Case, CFA, Director of Equity Portfolio Management, and Dean S. Barr, Managing Director and Chief Investment Officer, are primarily responsible for the day-to-day management of the Fund's portfolio. Mr. Case joined the Adviser in 1994 and is the portfolio manager for its managed U.S. equity accounts. He previously worked with the Florida Retirement System, where he oversaw all internal quantitatively driven portfolios and assisted in the risk analysis of the aggregate domestic equity fund. Mr. Barr joined the Adviser - 9 - in 1989 and oversees portfolio management of all of the Adviser's programs. He is an authority and expert in the development of artificial intelligence systems for market and security analysis. Additionally, he is the author of several technical papers on Artificial Intelligence. The Fund is authorized to pay the Adviser a fee equal to an annual average rate of 1.47% of its average daily net assets. The Adviser pays all of the operating expenses of the Fund except brokerage, taxes, interest, fees and expenses of non-interested person trustees and extraordinary expenses. The rate of the advisory fees paid by most investment companies to their investment advisers is lower than the rate of the advisory fees paid by the Fund. In this regard, it should be noted that most investment companies pay their own operating expenses directly, while the Fund's expenses, except those specified above, are paid by the Adviser. The Fund retains AmeriPrime Financial Services, Inc. (the "Administrator") to manage the Fund's business affairs and provide the Fund with administrative services, including all regulatory reporting and necessary office equipment, personnel and facilities. The Administrator receives a monthly fee from the Adviser equal to an annual average rate of 0.10% of the Fund's average daily net assets up to fifty million dollars, 0.075% of the Fund's average daily net assets from fifty to one hundred million dollars and 0.050% of the Fund's average daily net assets over one hundred million dollars (subject to a minimum annual payment of $30,000). In addition, the Adviser will reimburse the Administrator for organizational expenses advanced by the Administrator. The Fund retains American Data Services, Inc., 24 West Carver Street, Huntington, New York 11743 (the "Transfer Agent") to serve as transfer agent, dividend paying agent and shareholder service agent. The Trust retains AmeriPrime Financial Securities, Inc., 1793 Kingswood Drive, Suite 200, Southlake, Texas 76092 (the "Distributor") to act as the principal distributor of the Fund's shares. Kenneth D. Trumpfheller, officer and sole shareholder of the Administrator and the Distributor, is an officer and trustee of the Trust. The services of the Administrator, Transfer Agent and Distributor are operating expenses paid by the Adviser. Consistent with the Rules of Fair Practice of the National Association of Securities Dealers, Inc., and subject to its obligation of seeking best qualitative execution, the Adviser may give consideration to sales of shares of the Fund as a factor in the selection of brokers and dealers to execute portfolio transactions. The Adviser (not the Fund) may pay certain financial institutions (which may include banks, securities dealers and other industry professionals) a "servicing fee" for performing certain administrative functions for Fund shareholders to the extent these institutions are allowed to do so by applicable statute, rule or regulation. INVESTMENT POLICIES AND TECHNIQUES AND RISK CONSIDERATIONS This section contains general information about various types of securities and investment techniques that the Fund may purchase or employ. Equity Securities The Fund may invest in common stock, preferred stock, common stock equivalents (such as convertible preferred stock and convertible debentures) and closed-end investment companies which invest primarily in common stocks. Convertible preferred stock is preferred stock that can be converted into common stock pursuant to its terms. Convertible debentures are debt instruments that can be converted into common stock pursuant to their terms. The Adviser intends to invest only in convertible debentures rated A or higher by Standard & Poor's Corporation ("S&P") or by Moody's Investors Services, Inc. ("Moody's") and will limit the Fund's investment in such debentures to 10% of net assets. The Fund may hold warrants and rights issued in conjunction with common stock, but in - 10 - general will sell any such warrants or rights as soon as practicable after they are received. Warrants are options to purchase equity securities at a specified price valid for a specific time period. Rights are similar to warrants, but normally have a short duration and are distributed by the issuer to its shareholders. The Fund may invest a significant portion of its portfolio in smaller companies when the Adviser believes it to be consistent with the Fund's objective. Some characteristics of smaller companies, such as limited product diversity, a lack of managerial or financial resources, and thinly traded securities may result in increased stock price volatility. Equity securities include common stocks of domestic real estate investment trusts and other companies which operate as real estate corporations or which have a significant portion of their assets in real estate. The Fund will not acquire any direct ownership of real estate. The Fund may invest in foreign equity securities through the purchase of American Depository Receipts. American Depository Receipts are dollar-denominated receipts that are generally issued in registered form by domestic banks, and represent the deposit with the bank of a security of a foreign issuer. To the extent that the Fund does invest in foreign securities, such investments may be subject to special risks, such as changes in restrictions on foreign currency transactions and rates of exchange, and changes in the administrations or economic and monetary policies of foreign governments. Fixed Income Securities The Fund may invest in U.S. Treasury bills and repurchase agreements, both of which are fixed income securities. Fixed income securities are generally considered to be interest rate sensitive, which means that their value will generally decrease when interest rates rise and increase when interest rates fall. Securities with shorter maturities, while offering lower yields, generally provide greater price stability than longer term securities and are less affected by changes in interest rates. U.S. Treasury bills are backed by the full faith and credit of the U.S. Government as to payment of principal and interest and are among the highest quality government securities. A repurchase agreement is a short-term investment in which the purchaser (i.e., the Fund) acquires ownership of a U.S. Government obligation (which may be of any maturity) and the seller agrees to repurchase the obligation at a future time at a set price, thereby determining the yield during the purchaser's holding period (usually not more than seven days from the date of purchase). Any repurchase transaction in which the Fund engages will require full collateralization of the seller's obligation during the entire term of the repurchase agreement. In the event of a bankruptcy or other default of the seller, the Fund could experience both delays in liquidating the underlying security and losses in value. However, the Fund intends to enter into repurchase agreements only with Star Bank, N.A. (the Fund's Custodian), other banks with assets of $1 billion or more and registered securities dealers determined by the Adviser (subject to review by the Board of Trustees) to be creditworthy. The Adviser monitors the creditworthiness of the banks and securities dealers with which the Fund engages in repurchase transactions. Options Transactions The Fund may write (sell) covered call options on common stocks in the Fund's portfolio. A covered call option on a security is an agreement to sell a particular portfolio security if the option is exercised at a specified price, or before a set date. The Fund profits from the sale of the option, but gives up the opportunity to profit from any increase in the price of the stock above the option price, and may incur a loss if the stock price falls. Risks associated with writing covered call options include the possible inability to effect closing transactions at favorable prices and an appreciation limit on the securities set aside for settlement. The Fund may also purchase call options. The Fund will only engage in exchange-traded options transactions. - 11 - General The Fund may engage in short sales if, at the time of the short sale, the Fund owns or has the right to obtain an equal amount of the security being sold, at no additional cost, and the Fund's investment does not exceed 5% of its net assets. See "Additional Information About Fund Investments and Risk Considerations" in the Statement of Additional Information. GENERAL INFORMATION Fundamental Policies. The investment limitations set forth in the Statement of Additional Information as fundamental policies may not be changed without the affirmative vote of the majority of the outstanding shares of the Fund. The investment objective of the Fund may be changed without the affirmative vote of a majority of the outstanding shares of the Fund. Any such change may result in the Fund having an investment objective different from the objective which the shareholders considered appropriate at the time of investment in the Fund. Portfolio Turnover. The Fund does not intend to purchase or sell securities for short term trading purposes. The Fund will, however, sell any portfolio security (without regard to the length of time it has been held) when the Adviser believes that market conditions, creditworthiness factors or general economic conditions warrant such action. It is anticipated that the Fund will have a portfolio turnover rate of less than 200%. The brokerage commissions incurred by the Fund will generally be higher than those incurred by a fund with a lower portfolio turnover rate. The Fund does not anticipate any adverse tax consequences as a result of its portfolio turnover rate, although substantial net capital gains could be realized, and any distributions derived from such gains may be ordinary income for federal tax purposes. Shareholder Rights. Any Trustee of the Trust may be removed by vote of the shareholders holding not less than two-thirds of the outstanding shares of the Trust. The Trust does not hold an annual meeting of shareholders. When matters are submitted to shareholders for a vote, each shareholder is entitled to one vote for each whole share he owns and fractional votes for fractional shares he owns. All shares of the Fund have equal voting rights and liquidation rights. Prior to the offering made by this Prospectus, AmeriPrime Financial Securities, Inc. purchased for investment all of the outstanding shares of the Fund and as a result AmeriPrime Financial Securities, Inc. and its controlling shareholder Kenneth D. Trumpfheller may be deemed to control the Fund. PERFORMANCE INFORMATION The Fund may periodically advertise "average annual total return." The "average annual total return" of the Fund refers to the average annual compounded rate of return over the stated period that would equate an initial amount invested at the beginning of a stated period to the ending redeemable value of the investment. The calculation of "average annual total return" assumes the reinvestment of all dividends and distributions. The Fund may also periodically advertise its total return over various periods in addition to the value of a $10,000 investment (made on the date of the initial public offering of the Fund's shares) as of the end of a specified period. The "total return" for the Fund refers to the percentage change in the value of an account between the beginning and end of the stated period, assuming no activity in the account other than reinvestment of dividends and capital gains distributions. The Fund may also include in advertisements data comparing performance with other mutual funds as reported in non-related investment media, published editorial comments and performance rankings compiled by independent organizations and publications that monitor the performance of mutual funds (such as Lipper Analytical Services, Inc., Morningstar, Inc., Fortune or - 12 - Barron's). Performance information may be quoted numerically or may be presented in a table, graph or other illustration. In addition, Fund performance may be compared to well-known indices of market performance including the Standard & Poor's (S&P) 500 Index or the Dow Jones Industrial Average. The advertised performance data of the Fund is based on historical performance and is not intended to indicate future performance. Rates of total return quoted by the Fund may be higher or lower than past quotations, and there can be no assurance that any rate of total return will be maintained. The principal value of an investment in the Fund will fluctuate so that a shareholder's shares, when redeemed, may be worth more or less than the shareholder's original investment. - 13 - Investment Adviser Administrator LBS Capital Management, Inc. AmeriPrime Financial Services, Inc. 311 Park Place Blvd., Suite 330 1793 Kingswood Drive, Suite 200 Clearwater, Florida 34619 Southlake, Texas 76092 Custodian (subsequent purchases) Distributor Star Bank, N.A. AmeriPrime Financial Securities, Inc. P.O. Box 641083 1793 Kingswood Drive, Suite 200 Cincinnati, Ohio 45264 Southlake, Texas 76092 Transfer Agent (initial purchases and all redemption requests) Auditors American Data Services, Inc. McCurdy & Associates CPA's, Inc. 24 West Carver Street 27955 Clemens Road Huntington, New York 11743 Westlake, Ohio 44145 No person has been authorized to give any information or to make any representations, other than those contained in this Prospectus, in connection with the offering contained in this Prospectus, and if given or made, such information or representations must not be relied upon as being authorized by the Fund. This Prospectus does not constitute an offer by the Fund to sell its shares in any state to any person to whom it is unlawful to make such offer in such state. - 14 - TABLE OF CONTENTS Page SUMMARY OF FUND EXPENSES........................ 2 Shareholder Transaction Expenses................ 2 Annual Fund Operating Expenses.................. 2 THE FUND........................................ 3 INVESTMENT OBJECTIVE AND STRATEGIES................................ 3 HOW TO INVEST IN THE FUND....................... 3 Open Account Program......................... 4 Reduced Sales Load Purchases................. 5 Purchases at Net Asset Value................. 5 Additional Information....................... 6 Tax Sheltered Retirement Plans............... 6 Other Purchase Information................... 6 HOW TO REDEEM SHARES............................ 6 By Mail....................................... 7 By Telephone.................................. 7 Additional Information........................ 7 SHARE PRICE CALCULATION......................... 8 DIVIDENDS AND DISTRIBUTIONS..................... 8 TAXES........................................... 9 OPERATION OF THE FUND........................... 9 INVESTMENT POLICIES AND TECHNIQUES AND RISK CONSIDERATIONS.......................10 Equity Sequrities...............................10 Fixed Income Securities.........................11 Options Transactions............................11 General.........................................12 GENERAL INFORMATION.............................12 Fundamental Policies............................12 Portfolio Turnover..............................12 Shareholder Rights..............................12 PERFORMANCE INFORMATION.........................12 AIT VISION U.S. EQUITY PORTFOLIO PROSPECTUS & APPLICATION November 6, 1995 GLOBALT GROWTH FUND Supplement Dated June 28, 1996 To Prospectus Dated January 1, 1996 The following condensed supplementary financial information for the period ended April 30, 1996, is derived from the unaudited financial statements of the Fund. The unaudited financial statements of the Fund are included in the Statement of Additional Information.
GLOBALT GROWTH FUND FINANCIAL HIGHLIGHTS For a share outstanding throughout the period from December 1, 1995 (Commencement of Operations) through April 30, 1996 Net asset value- beginning of period............................. $10.00 -------- Income from investment operations: Net investment income/(loss)..................................... (.01) Net gain/(loss) on investments both realized and unrealized...... 1.64 -------- Total from investment operations................................. 1.63 -------- Less distributions: Dividends from net investment income............................. 0 Dividends from capital gains..................................... 0 -------- Net asset value- end of period................................... $11.63 ======== Total Return**................................................... 39.25% Ratios/Supplemental data: Net assets, end of period (in 000's)............................. 2,009 Ratio of expenses to average net assets**........................ 1.32% Ratio of net investment income to average net assets**........... (.19)% Portfolio turnover rate.......................................... 26.88% Average Commission rate paid..................................... .0934 ** Annualized
The following should be read in conjunction with the section entitled "General Information" on page 13 of the Prospectus: As of May 31, 1996, Management Psychology Group Pension Plan and Management Psychology Group Profit Sharing Trust may be deemed to control the Fund as a result of their beneficial ownership of shares of the Fund. GLOBALT GROWTH FUND PROSPECTUS & APPLICATION January 1, 1996 GLOBALT, Inc. 3060 Peachtree Road, N.W. One Buckhead Plaza, Suite 225 Atlanta, Georgia 30305 For Information, Shareholder Services and Requests: (800) 831-9922 GLOBALT Growth Fund (the "Fund") is a mutual fund whose investment objective is to provide long term growth of capital. The Fund seeks to achieve its objective by investing in a broad range of equity securities of U.S. companies believed by its Adviser, GLOBALT, Inc., to offer superior growth potential. As the Adviser believes exposure to rapidly growing foreign markets enhances growth potential, all stocks in the Fund's portfolio will be of companies which compete in both U.S. and foreign economies and thus, in the Adviser's opinion, are globally positioned for success. The Fund is "no-load," which means there are no sales charges or commissions. In addition, there are no 12b-1 fees, distribution expenses or deferred sales charges which are borne by the shareholders. The Fund is one of the mutual funds comprising AmeriPrime Funds, an open-end management investment company, and is distributed by AmeriPrime Financial Securities, Inc. This Prospectus provides the information a prospective investor ought to know before investing and should be retained for future reference. A Statement of Additional Information has been filed with the Securities and Exchange Commission dated November 6, 1995, which is incorporated herein by reference and can be obtained without charge by calling the Fund at the phone number listed above. THESE SECURITIES HAVE NOT BEEN APPROVED OR DISAPPROVED BY THE SECURITIES AND EXCHANGE COMMISSION OR ANY STATE SECURITIES COMMISSION NOR HAS THE SECURITIES AND EXCHANGE COMMISSION OR ANY STATE SECURITIES COMMISSION PASSED UPON THE ACCURACY OR ADEQUACY OF THIS PROSPECTUS. ANY REPRESENTATION TO THE CONTRARY IS A CRIMINAL OFFENSE. TABLE OF CONTENTS Page SUMMARY OF FUND EXPENSES............................................... 3 Shareholder Transaction Expenses....................................... 3 Annual Fund Operating Expenses......................................... 3 THE FUND............................................................... 4 INVESTMENT OBJECTIVE AND STRATEGIES.................................... 4 HOW TO INVEST IN THE FUND.............................................. 6 Initial Purchase.................................................... 6 By Mail.......................................................... 6 By Wire.......................................................... 6 Additional Investments.............................................. 7 Tax Sheltered Retirement Plans...................................... 7 Other Purchase Information.......................................... 7 HOW TO REDEEM SHARES................................................... 8 By Mail.............................................................. 8 By Telephone......................................................... 8 Additional Information............................................... 9 SHARE PRICE CALCULATION................................................ 9 DIVIDENDS AND DISTRIBUTIONS............................................ 10 TAXES.................................................................. 10 OPERATION OF THE FUND.................................................. 11 INVESTMENT POLICIES AND TECHNIQUES AND RISK CONSIDERATIONS............. 12 Equity Sequrities...................................................... 12 Fixed Income Securities................................................ 12 Corporate Debt Securities........................................... 12 U.S. Government Obligations......................................... 12 Loans of Portfolio Securities.......................................... 13 General................................................................ 13 GENERAL INFORMATION.................................................... 13 Fundamental Policies................................................... 13 Portfolio Turnover..................................................... 13 Shareholder Rights..................................................... 13 PERFORMANCE INFORMATION................................................ 14 - 2 - SUMMARY OF FUND EXPENSES The tables below are provided to assist an investor in understanding the direct and indirect expenses that an investor may incur as a shareholder in the Fund. The expense information is based on estimated amounts for the current fiscal year. The expenses are expressed as a percentage of average net assets. The Example should not be considered a representation of future Fund performance or expenses, both of which may vary. Shareholders should be aware that the Fund is a no-load fund and, accordingly, a shareholder does not pay any sales charge or commission upon purchase or redemption of shares of the Fund. In addition, the Fund does not have a 12b-1 Plan. Unlike most other mutual funds, the Fund does not pay directly for transfer agency, pricing, custodial, auditing or legal services, nor does it pay directly any general administrative or other significant operating expenses. The Adviser pays all of the expenses of the Fund except brokerage, taxes, interest, fees and expenses of non-interested person trustees and extraordinary expenses. Shareholder Transaction Expenses Sales Load Imposed on Purchases................................... NONE Sales Load Imposed on Reinvested Dividends........................ NONE Deferred Sales Load............................................... NONE Redemption Fees................................................... NONE Exchange Fees..................................................... NONE Annual Fund Operating Expenses (as a percentage of average net assets) (1) Management Fees................................................... 1.17% 12b-1 Charges..................................................... NONE Other Expenses (2)................................................ 0.00% Total Fund Operating Expenses..................................... 1.17% 1 The Fund's total operating expenses are equal to the management fee paid to the Adviser because the Adviser pays all of the Fund's operating expenses (except as described in footnote 2). 2 The Fund estimates that other expenses (fees and expenses of the trustees who are not "interested persons" as defined in the Investment Company Act) will be .00032 of 1% of average net assets for the first fiscal year. The tables above are provided to assist an investor in understanding the direct and indirect expenses that an investor may incur as a shareholder in the Fund. Example You would pay the following expenses on a $1,000 investment, assuming (1) 5% annual return and (2) redemption at the end of each time period: 1 Year 3 Years $12 $37 - 3 - THE FUND GLOBALT Growth Fund (the "Fund") was organized as a series of AmeriPrime Funds, an Ohio business trust (the "Trust"), on October 20, 1995 and commenced operations on December 1, 1995. This prospectus offers shares of the Fund and each share represents an undivided, proportionate interest in the Fund. The investment adviser to the Fund is GLOBALT, Inc. (the "Adviser"). INVESTMENT OBJECTIVE AND STRATEGIES The investment objective of the Fund is to provide long term growth of capital. The Fund seeks to achieve its objective by investing primarily in a broad range of equity securities of U.S. companies which the Adviser believes offer superior growth potential, based on certain fundamental and technical standards of selection. As the Adviser believes exposure to rapidly growing foreign markets enhances growth potential, all stocks in the Fund's portfolio will be of companies which compete in both U.S. and foreign economies and thus, in the Adviser's opinion, are globally positioned for success. The Adviser will only purchase stocks of companies that are expected to derive at least 20% of their revenues outside of the U.S. It is anticipated that, in the aggregate, the stocks in the Fund's portfolio will derive at least 50% of their revenues outside of the U.S. and as a result will provide higher relative growth than the S&P 500 Index. The Fund is designed for investors with a long term wealthbuilding horizon and is particularly suitable for retirement and educational funds. The Adviser seeks to limit investment risk by diversifying the Fund's investments across a broad range of industries and companies. After screening for securities with exposure to foreign markets, the Adviser uses a disciplined selection process to assemble a portfolio which it anticipates will have at least a 50% exposure to foreign markets and will be highly diversified across economic sectors. As the Fund will primarily invest in growth-oriented stocks, it is expected that the Fund will generate a total return that is predominantly derived from long term capital appreciation, although current income is also expected. The Adviser has been managing accounts for its clients since 1991. The performance of all accounts with investment objectives, policies and strategies substantially similar to those of the Fund appears below. The data is provided to illustrate past performance of the Adviser in managing such accounts, as compared to the S&P 500 Index. The persons responsible for the performance of the accounts are the same as those responsible for the investment management of the Fund. As of December 31, 1995, the assets in those accounts totaled approximately $251 million. - 4 -
Summary of GLOBALT, Inc. Annual Investment Returns* Larger Cap Composite of GLOBALT, Inc. Period Managed Accounts S&P 500 1991 35.4% 30.5% 1992 7.8% 7.6% 1993 18.9% 10.1% 1994 (0.7%) 1.3% 1995 36.5% 37.6% 5 Year Annual Average 18.7% 16.6% * The GLOBALT, Inc. performance is the time-weighted, dollar-weighted average total return associated with a composite of equity accounts having objectives similar to the Fund, and is unaudited. The composite does not include non-discretionary or otherwise restricted accounts because the nature of those accounts make them inappropriate for purposes of comparison. Performance figures reflected are net of management fees and net of all expenses, including transaction costs and commissions. Results include the reinvestment of dividends and capital gains. The presentation of the performance composite complies with the Performance Calculation Standards of the Association for Investment Management and Research (AIMR). The S&P 500 Index is a widely recognized, unmanaged index of market activity based upon the aggregate performance of a selected portfolio of publicly traded common stocks, including monthly adjustments to reflect the reinvestment of dividends and other distributions. The S&P 500 Index reflects the total return of securities comprising the Index, including changes in market prices as well as accrued investment income, which is presumed to be reinvested. Performance figures for the S&P 500 Index do not reflect deduction of transaction costs or expenses, including management fees. The performance of the accounts managed by the Adviser should not be considered indicative of future performance of the Fund. Results may differ because of, among other things, differences in brokerage commissions, account expenses, including management fees, the size of positions taken in relation to account size and diversification of securities, timing of purchases and sales, availability of cash for new investments and the private character of accounts compared with the public character of the Fund. In addition, the results for different periods may vary. The Adviser generally intends to stay fully invested (subject to liquidity requirements and defensive purposes) in common stock and common stock equivalents (such as rights, warrants and securities convertible into common stocks) of U.S. companies, regardless of the movement of stock prices. However, the Fund may invest in preferred stocks, bonds, corporate debt and U.S. government obligations to maintain liquidity or pending investment in equity securities. Substantially all equity securities in the Fund's portfolio are listed on a major stock exchange or traded over-the-counter. The Fund will not invest in foreign securities. - 5 - For temporary defensive purposes under abnormal market or economic conditions, the Fund may hold all or a portion of its assets in money market instruments, securities of other no-load registered investment companies or U.S. government repurchase agreements. The Fund may also invest in such instruments at any time to maintain liquidity or pending selection of investments in accordance with its policies. If the Fund acquires securities of another investment company, the shareholders of the Fund will be subject to additional management fees. As all investment securities are subject to inherent market risks and fluctuations in value due to earnings, economic and political conditions and other factors, the Fund cannot give any assurance that its investment objective will be achieved. In addition, you should be aware that the Adviser has no prior experience in managing investment companies and that the Fund has no operating history. Rates of total return quoted by the Fund may be higher or lower than past quotations, and there can be no assurance that any rate of total return will be maintained. See "Investment Policies and Techniques and Risk Considerations" for a more detailed discussion of the Fund's investment practices.
HOW TO INVEST IN THE FUND Shares of the Fund are sold on a continuous basis, and you may invest any amount you choose as often as you wish, subject to a minimum initial investment of $25,000 and minimum subsequent investments of $5,000. Shares may also be purchased through a broker dealer or other financial institution authorized by the Fund's distributor, and investors may be charged a fee for this service. Initial Purchase By Mail - You may purchase shares of the Fund by completing and signing the investment application form which accompanies this Prospectus and mailing it in proper form, together with a check (subject to the above minimum amounts) made payable to GLOBALT Growth Fund, and sent by mail or overnight delivery to: GLOBALT Growth Fund c/o American Data Services, Inc. 24 West Carver Street, 2nd Floor Huntington, NY 11743 Your purchase of shares of the Fund will be effected at the next share price calculated after receipt of your investment. By Wire - You may also purchase shares of the Fund by wiring federal funds from your bank, which may charge you a fee for doing so. If the money is to be wired, you must call the Transfer Agent at (800) 831-9922 to set up your account and - 6 - obtain an account number. You should be prepared to provide the information on the application to the Transfer Agent. Then, you should provide your bank with the following information for purposes of wiring your investment: Star Bank, N.A. Cinti/Trust ABA # 0420-0001-3 Attn: GLOBALT Growth Fund D.D.A. # 483885638 Account Name ________________ (write in shareholder name) For the Account # ________________ (write in account number) You are required to mail a signed application to the Custodian at the above address in order to complete your initial wire purchase. Wire orders will be accepted only on a day on which the Fund and the Custodian and Transfer Agent are open for business. A wire purchase will not be considered made until the wired money is received and the purchase is accepted by the Fund. Any delays which may occur in wiring money, including delays which may occur in processing by the banks, are not the responsibility of the Fund or the Transfer Agent. There is presently no fee for the receipt of wired funds, but the right to charge shareholders for this service is reserved by the Fund. Additional Investments You may purchase additional shares of the Fund at any time (subject to minimum investment requirements) by mail, wire, or automatic investment. Each additional mail purchase request must contain your name, the name of your account(s), your account number(s), and the name of the Fund. Checks should be made payable to GLOBALT Growth Fund and should be sent to the Custodian's address. A bank wire should be sent as outlined above. Tax Sheltered Retirement Plans Since the Fund is oriented to longer term investments, shares of the Fund may be an appropriate investment medium for tax sheltered retirement plans, including: individual retirement plans (IRAs); simplified employee pensions (SEPs); 401(k) plans; qualified corporate pension and profit sharing plans (for employees); tax deferred investment plans (for employees of public school systems and certain types of charitable organizations); and other qualified retirement plans. You should contact the Transfer Agent for the procedure to open an IRA or SEP plan, as well as more specific information regarding these retirement plan options. Consultation with an attorney or tax adviser regarding these plans is advisable. Custodial fees for an IRA will be paid by the shareholder by redemption of sufficient shares of the Fund from the IRA unless the fees are paid directly to the IRA custodian. You can obtain information about the IRA custodial fees from the Transfer Agent. Other Purchase Information Dividends begin to accrue after you become a shareholder. The Fund does not issue share certificates. All shares are held in non-certificate form registered on the books of the Fund and the Fund's Transfer Agent for the account of the shareholder. The rights to limit the amount of purchases and to refuse to sell to any person are reserved by the Fund. If your check or wire does not clear, - 7 - you will be responsible for any loss incurred by the Fund. If you are already a shareholder, the Fund can redeem shares from any identically registered account in the Fund as reimbursement for any loss incurred. You may be prohibited or restricted from making future purchases in the Fund. HOW TO REDEEM SHARES All redemptions will be made at the net asset value determined after the redemption request has been received by the Transfer Agent in proper order. Shareholders may receive redemption payments in the form of a check or federal wire transfer. The proceeds of the redemption may be more or less than the purchase price of your shares, depending on the market value of the Fund's securities at the time of your redemption. A broker may charge a transaction fee for the redemption. There is no charge for wire redemptions; however, the Fund reserves the right to charge for this service. Any charges for wire redemptions will be deducted from the shareholder's Fund account by redemption of shares. By Mail - You may redeem any part of your account in the Fund at no charge by mail. Your request should be addressed to: GLOBALT Growth Fund c/o American Data Services, Inc. 24 W. Carver Street, 2nd Floor Huntington, New York 11743 "Proper order" means your request for a redemption must include your letter of instruction, including the Fund name, account number, account name(s), the address and the dollar amount or number of shares you wish to redeem. This request must be signed by all registered share owner(s) in the exact name(s) and any special capacity in which they are registered. For all redemptions, the Fund requires that signatures be guaranteed by a bank or member firm of a national securities exchange. Signature guarantees are for the protection of shareholders. At the discretion of the Fund or American Data Services, Inc., a shareholder, prior to redemption, may be required to furnish additional legal documents to insure proper authorization. By Telephone - You may redeem any part of your account in the Fund by calling the Transfer Agent at (800) 831-9922. You must first complete the Optional Telephone Redemption and Exchange section of the investment application to institute this option. The Fund, the Transfer Agent and the Custodian are not liable for following redemption or exchange instructions communicated by telephone that they reasonably believe to be genuine. However, if they do not employ reasonable procedures to confirm that telephone instructions are genuine, they may be liable for any losses due to unauthorized or fraudulent instructions. Procedures employed may include recording telephone instructions and requiring a form of personal identification from the caller. The telephone redemption and exchange procedures may be terminated at any time by the Fund or the Transfer Agent. During periods of extreme market activity it is possible that shareholders may encounter some difficulty in telephoning the Fund, although neither the Fund nor the Transfer Agent has ever experienced - 8 - difficulties in receiving and in a timely fashion responding to telephone requests for redemptions or exchanges. If you are unable to reach the Fund by telephone, you may request a redemption or exchange by mail. Additional Information - If you are not certain of the requirements for a redemption please call the Transfer Agent at (800) 831-9922. Redemptions specifying a certain date or share price cannot be accepted and will be returned. You will be mailed the proceeds on or before the fifth business day following the redemption. However, payment for redemption made against shares purchased by check will be made only after the check has been collected, which normally may take up to fifteen days. Also, when the New York Stock Exchange is closed (or when trading is restricted) for any reason other than its customary weekend or holiday closing or under any emergency circumstances, as determined by the Securities and Exchange Commission, the Fund may suspend redemptions or postpone payment dates. Because the Fund incurs certain fixed costs in maintaining shareholder accounts, the Fund reserves the right to require any shareholder to redeem all of his or her shares in the Fund on 30 days' written notice if the value of his or her shares in the Fund is less than $25,000 due to redemption, or such other minimum amount as the Fund may determine from time to time. An involuntary redemption constitutes a sale. You should consult your tax adviser concerning the tax consequences of involuntary redemptions. A shareholder may increase the value of his or her shares in the Fund to the minimum amount within the 30 day period. Each share of the Fund is subject to redemption at any time if the Board of Trustees determines in its sole discretion that failure to so redeem may have materially adverse consequences to all or any of the shareholders of the Fund. SHARE PRICE CALCULATION The value of an individual share in the Fund (the net asset value) is calculated by dividing the total value of the Fund's investments and other assets (including accrued income), less any liabilities (including estimated accrued expenses), by the number of shares outstanding, rounded to the nearest cent. Net asset value per share is determined as of the close of the New York Stock Exchange (4:00 p.m., Eastern time) on each day that the exchange 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 net asset value per share of the Fund will fluctuate. Securities which are traded on any exchange or on the NASDAQ over-the-counter market are valued at the last quoted sale price. Lacking a last sale price, a security is valued at its last bid price except when, in the Adviser's opinion, the last bid price does not accurately reflect the current value of the security. All other securities for which over-the-counter market quotations are readily available are valued at their last bid price. When market quotations are not readily available, when the Adviser determines the last bid price does not accurately reflect the current value or when restricted securities are being valued, such securities are valued as determined in good faith by the Adviser, subject to review of the Board of Trustees of the Trust. Fixed income securities generally are valued by using market quotations, but may be valued on the basis of prices furnished by a pricing service when the Adviser believes such prices accurately reflect the fair market value of such - 9 - securities. A pricing service utilizes electronic data processing techniques based on yield spreads relating to securities with similar characteristics to determine prices for normal institutional-size trading units of debt securities without regard to sale or bid prices. When prices are not readily available from a pricing service, or when restricted or illiquid securities are being valued, securities are valued at fair value as determined in good faith by the Adviser, subject to review of the Board of Trustees. Short term investments in fixed income securities with maturities of less than 60 days when acquired, or which subsequently are within 60 days of maturity, are valued by using the amortized cost method of valuation, which the Board has determined will represent fair value. DIVIDENDS AND DISTRIBUTIONS The Fund intends to distribute substantially all of its net investment income as dividends to its shareholders on an annual basis, and intends to distribute its net long term capital gains and its net short term capital gains at least once a year. Income dividends and capital gain distributions are automatically reinvested in additional shares at the net asset value per share on the distribution date. An election to receive a cash payment of dividends and/or capital gain distributions may be made in the application to purchase shares or by separate written notice to the Transfer Agent. Shareholders will receive a confirmation statement reflecting the payment and reinvestment of dividends and summarizing all other transactions. If cash payment is requested, a check normally will be mailed within five business days after the payable date. If you withdraw your entire account, all dividends accrued to the time of withdrawal, including the day of withdrawal, will be paid at that time. You may elect to have distributions on shares held in IRAs and 403(b) plans paid in cash only if you are 59 1/2 years old or permanently and totally disabled or if you otherwise qualify under the applicable plan. TAXES The Fund intends to qualify each year as a "regulated investment company" under 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 it distributes substantially all of its net investment income and any realized capital gains. For federal income tax purposes, dividends paid by the Fund from ordinary income are taxable to shareholders as ordinary income, but may be eligible in part for the dividends received deduction for corporations. Pursuant to the Tax Reform Act of 1986 (the "Tax Reform Act"), all distributions of net capital gains to individuals are taxed at the same rate as ordinary income. All distributions designated as being made from net realized short-term capital gains are taxable to shareholders as long term capital gains regardless of the holding period of the shareholder. The Fund will mail to each shareholder after the close of the calendar year a statement setting forth the federal income tax status of distributions made during the year. Dividends and capital gains distributions may also be subject to state and local taxes. Shareholders are urged to consult their own tax advisers regarding specific questions as to federal, state or local taxes and the tax effect of distributions and withdrawals from the Fund. - 10 - On the application or other appropriate form, the Fund will request the shareholder's certified taxpayer identification number (social security number for individuals) and a certification that the shareholder is not subject to backup withholding. Unless the shareholder provides this information, the Fund will be required to withhold and remit to the U.S. Treasury 31% of the dividends, distributions and redemption proceeds payable to the shareholder. Shareholders should be aware that, under regulations promulgated by the Internal Revenue Service, the Fund may be fined $50 annually for each account for which a certified taxpayer identification number is not provided. In the event that such a fine is imposed with respect to a specific account in any year, the Fund may make a corresponding charge against the account. OPERATION OF THE FUND The Fund is a diversified series of AmeriPrime Funds, an open-end management investment company organized as an Ohio business trust on August 8, 1995. The Board of Trustees supervises the business activities of the Fund. Like other mutual funds, the Fund retains various organizations to perform specialized services. The Fund retains GLOBALT, Inc., 3060 Peachtree Road, N.W., One Buckhead Plaza, Suite 225, Atlanta, Georgia 30305 (the "Adviser") to manage the Fund's investments. The Adviser was organized as a Georgia corporation in 1990. The Adviser manages larger capitalization equity, medium capitalization equity, balanced and fixed income portfolios for a variety of tax-exempt and taxable clients. Angela Allen, President of the Adviser, and Samuel Allen, Chairman of the Adviser, are the controlling shareholders of GLOBALT, Inc. The investment decisions for the Fund are made by a committee of the Adviser, which is primarily responsible for the day-to-day management of the Fund's portfolio. The Fund is authorized to pay the Adviser a fee equal to an annual average rate of 1.17% of its average daily net assets. The Adviser pays all of the operating expenses of the Fund except brokerage, taxes, interest, fees and expenses of non-interested person trustees and extraordinary expenses. The rate of the advisory fees paid by most investment companies to their investment advisers is lower than the rate of the advisory fees paid by the Fund. In this regard, it should be noted that most investment companies pay their own operating expenses directly, while the Fund's expenses, except those specified above, are paid by the Adviser. The Fund retains AmeriPrime Financial Services, Inc. (the "Administrator") to manage the Fund's business affairs and provide the Fund with administrative services, including all regulatory reporting and necessary office equipment, personnel and facilities. The Administrator receives a monthly fee from the Adviser equal to an annual average rate of 0.10% of the Fund's average daily net assets up to fifty million dollars, 0.075% of the Fund's average daily net assets from fifty to one hundred million dollars and 0.050% of the Fund's average daily net assets over one hundred million dollars (subject to a minimum annual payment of $30,000). In addition, the Adviser will reimburse the Administrator for organizational expenses advanced by the Administrator. The Fund retains American Data Services, Inc., 24 West Carver Street, Huntington, New York 11743 (the "Transfer Agent") to serve as transfer agent, dividend paying agent and shareholder service agent. The Trust retains AmeriPrime Financial Securities, Inc., 1793 Kingswood Drive, Suite 200, Southlake, Texas 76092 (the "Distributor") to act as the principal distributor of the Fund's shares. Kenneth D. Trumpfheller, officer and sole shareholder of the Administrator and the Distributor, is an officer and trustee of the Trust. The services of the Administrator, Transfer Agent and Distributor are operating expenses paid by the Adviser. - 11 - Consistent with the Rules of Fair Practice of the National Association of Securities Dealers, Inc., and subject to its obligation of seeking best qualitative execution, the Adviser may give consideration to sales of shares of the Fund as a factor in the selection of brokers and dealers to execute portfolio transactions. The Adviser (not the Fund) may pay certain financial institutions (which may include banks, securities dealers and other industry professionals) a "servicing fee" for performing certain administrative servicing functions for Fund shareholders to the extent these institutions are allowed to do so by applicable statute, rule or regulation. INVESTMENT POLICIES AND TECHNIQUES AND RISK CONSIDERATIONS This section contains general information about various types of securities and investment techniques that the Fund may purchase or employ. Equity Securities Equity securities consist of common stock, preferred stock and common stock equivalents (such as convertible preferred stock, convertible debentures, rights and warrants) and investment companies which invest primarily in the above. Equity securities also include common stocks and common stock equivalents of domestic real estate investment trusts and other companies which operate as real estate corporations or which have a significant portion of their assets in real estate. Fixed Income Securities The Fund may temporarily invest in short term fixed income securities. The Fund will limit its investment in fixed income securities to corporate debt securities and U.S. government securities. Fixed income securities are generally considered to be interest rate sensitive, which means that their value will generally decrease when interest rates rise and increase when interest rates fall. Securities with shorter maturities, while offering lower yields, generally provide greater price stability than longer term securities and are less affected by changes in interest rates. Corporate Debt Securities - Corporate debt securities are long and short term debt obligations issued by companies (such as publicly issued and privately placed bonds, notes and commercial paper). The Fund will only invest in corporate debt securities rated A or higher by Standard & Poor's Corporation or Moody's Investors Services, Inc. U.S. Government Obligations - U.S. government obligations may be backed by the credit of the government as a whole or only by the issuing agency. U.S. Treasury bonds, notes, and bills and some agency securities, such as those issued by the Federal Housing Administration and the Government National Mortgage Association (GNMA), are backed by the full faith and credit of the U.S. government as to payment of principal and interest and are the highest quality government securities. Other securities issued by U.S. government agencies or instrumentalities, such as securities issued by the Federal Home Loan Banks and the Federal Home Loan Mortgage Corporation, are supported only by the credit of the agency that issued them, and not by the U.S. government. Securities issued by the Federal Farm Credit System, the Federal Land Banks, and the Federal - 12 - National Mortgage Association (FNMA) are supported by the agency's right to borrow money from the U.S. Treasury under certain circumstances, but are not backed by the full faith and credit of the U.S. government. Loans of Portfolio Securities The Fund may make short and long term loans of its portfolio securities. Under the lending policy authorized by the Board of Trustees and implemented by the Adviser in response to requests of broker-dealers or institutional investors which the Adviser deems qualified, the borrower must agree to maintain collateral, in the form of cash or U.S. government obligations, with the Fund on a daily mark-to-market basis in an amount at least equal to 100% of the value of the loaned securities. The Fund will continue to receive dividends or interest on the loaned securities in time to vote on any matter which the Board of Trustees determines to be serious. With respect to loans of securities, there is the risk that the borrower may fail to return the loaned securities or that the borrower may not be able to provide additional collateral. General The Fund may invest up to 5% of its net assets in repurchase agreements fully collateralized by U.S. Government obligations. The Fund may invest in time deposits, certificates of deposit or banker's acceptances, and may buy and write put and call options, provided the Fund's investment in each does not exceed 5% of its net assets. GENERAL INFORMATION Fundamental Policies. The investment limitations set forth in the Statement of Additional Information as fundamental policies may not be changed without the affirmative vote of the majority of the outstanding shares of the Fund. The investment objective of the Fund may be changed without the affirmative vote of a majority of the outstanding shares of the Fund. Any such change may result in the Fund having an investment objective different from the objective which the shareholders considered appropriate at the time of investment in the Fund. Portfolio Turnover. The Fund does not intend to purchase or sell securities for short term trading purposes. The Fund will, however, sell any portfolio security (without regard to the length of time it has been held) when the Adviser believes that market conditions, creditworthiness factors or general economic conditions warrant such action. It is anticipated that the Fund will have a portfolio turnover rate of less than 100%. Shareholder Rights. Any Trustee of the Trust may be removed by vote of the shareholders holding not less than two-thirds of the outstanding shares of the Trust. The Trust does not hold an annual meeting of shareholders. When matters are submitted to shareholders for a vote, each shareholder is entitled to one vote for each whole share he owns and fractional votes for fractional shares he owns. All shares of the Fund have equal voting rights and liquidation rights. Prior to the offering made by this Prospectus, AmeriPrime Financial Securities, Inc. purchased for investment all of the outstanding shares of the Fund and as a result AmeriPrime Financial Securities, Inc. and its controlling shareholder Kenneth D. Trumpfheller may be deemed to control the Fund. - 13 - PERFORMANCE INFORMATION The Fund may periodically advertise "average annual total return." The "average annual total return" of the Fund refers to the average annual compounded rate of return over the stated period that would equate an initial amount invested at the beginning of a stated period to the ending redeemable value of the investment. The calculation of "average annual total return" assumes the reinvestment of all dividends and distributions. The Fund may also periodically advertise its total return over various periods in addition to the value of a $10,000 investment (made on the date of the initial public offering of the Fund's shares) as of the end of a specified period. The "total return" for the Fund refers to the percentage change in the value of an account between the beginning and end of the stated period, assuming no activity in the account other than reinvestment of dividends and capital gains distributions. The Fund may also include in advertisements data comparing performance with other mutual funds as reported in non-related investment media, published editorial comments and performance rankings compiled by independent organizations and publications that monitor the performance of mutual funds (such as Lipper Analytical Services, Inc., Morningstar, Inc., Fortune or Barron's). Performance information may be quoted numerically or may be presented in a table, graph or other illustration. In addition, Fund performance may be compared to well-known indices of market performance including the Standard & Poor's (S&P) 500 Index or the Dow Jones Industrial Average. The advertised performance data of the Fund is based on historical performance and is not intended to indicate future performance. Rates of total return quoted by the Fund may be higher or lower than past quotations, and there can be no assurance that any rate of total return will be maintained. The principal value of an investment in the Fund will fluctuate so that a shareholder's shares, when redeemed, may be worth more or less than the shareholder's original investment. - 14 - Investment Adviser Administrator GLOBALT, Inc. AmeriPrime Financial Services, Inc. 3060 Peachtree Road, N.W. 1793 Kingswood Drive, Suite 200 One Buckhead Plaza, Suite 225 Southlake, Texas 76092 Atlanta, Georgia 30305 Custodian (all initial and subsequent purchases) Distributor Star Bank, N.A. AmeriPrime Financial Securities, Inc. P.O. Box 641084 1793 Kingswood Drive, Suite 200 Cincinnati, Ohio 45264 Southlake, Texas 76092 Transfer Agent (all redemption requests) Auditors American Data Services, Inc. McCurdy & Associates CPA's, Inc. 24 West Carver Street, 2nd Floor 27955 Clemens Road Huntington, New York 11743 Westlake, Ohio 44145 No person has been authorized to give any information or to make any representations, other than those contained in this Prospectus, in connection with the offering contained in this Prospectus, and if given or made, such information or representations must not be relied upon as being authorized by the Fund. This Prospectus does not constitute an offer by the Fund to sell its shares in any state to any person to whom it is unlawful to make such offer in such state. - 15 - CARL DOMINO EQUITY INCOME FUND STATEMENT OF ADDITIONAL INFORMATION JUNE 28, 1996 This Statement of Additional Information is not a prospectus. It should be read in conjunction with the Prospectus of Carl Domino Equity Income Fund dated November 6, 1995, and the Supplement to the Prospectus dated June 28, 1996. A copy of the Prospectus can be obtained by writing the Transfer Agent at 24 W. Carver Street, Huntington, New York 11743, or by calling 1-800-506-9922. STATEMENT OF ADDITIONAL INFORMATION TABLE OF CONTENTS PAGE DESCRIPTION OF THE TRUST. . . . . . . . . . . . . . . . . . . . . . . . . 1 ADDITIONAL INFORMATION ABOUT FUND INVESTMENTS AND RISK CONSIDERATIONS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 INVESTMENT LIMITATIONS. . . . . . . . . . . . . . . . . . . . . . . . . . 5 THE INVESTMENT ADVISER. . . . . . . . . . . . . . . . . . . . . . . . . . 8 TRUSTEES AND OFFICERS . . . . . . . . . . . . . . . . . . . . . . . . . . 8 PORTFOLIO TRANSACTIONS AND BROKERAGE. . . . . . . . . . . . . . . . . . . 9 DETERMINATION OF SHARE PRICE. . . . . . . . . . . . . . . . . . . . . . . 10 INVESTMENT PERFORMANCE. . . . . . . . . . . . . . . . . . . . . . . . . . 11 CUSTODIAN . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11 TRANSFER AGENT. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12 ACCOUNTANTS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12 DISTRIBUTOR . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12 DESCRIPTION OF THE TRUST Carl Domino Equity Income Fund (the "Fund") was organized as a series of AmeriPrime Funds (the "Trust"). The Trust is an open-end investment company established under the laws of Ohio by an Agreement and Declaration of Trust dated August 8, 1995 (the "Trust Agreement"). The Trust Agreement permits the Trustees to issue an unlimited number of shares of beneficial interest of separate series without par value. The Fund is one of a series of funds currently authorized by the Trustees. Each share of a series represents an equal proportionate interest in the assets and liabilities belonging to that series with each other share of that series and is entitled to such dividends and distributions out of income belonging to the series as are declared by the Trustees. The shares do not have cumulative voting rights or any preemptive or conversion rights, and the Trustees have the authority from time to time to divide or combine the shares of any series into a greater or lesser number of shares of that series so long as the proportionate beneficial interest in the assets belonging to that series and the rights of shares of any other series are in no way affected. In case of any liquidation of a series, the holders of shares of the series being liquidated will be entitled to receive as a class a distribution out of the assets, net of the liabilities, belonging to that series. Expenses attributable to any series are borne by that series. Any general expenses of the Trust not readily identifiable as belonging to a particular series are allocated by or under the direction of the Trustees in such manner as the Trustees determine to be fair and equitable. No shareholder is liable to further calls or to assessment by the Trust without his or her express consent. As of May 31, 1996, the following persons may be deemed to beneficially own five percent (5%) or more of the Fund: Carl Domino Associates, L.P., 580 Village Blvd., Suite 225, West Palm Beach, Florida - 5.94%; Carl Domino Associates Profit Sharing Trust - 70.75%; Frank and Josephine Fava, 12 Liberty Ridge Trail, Totowa, New Jersey - 8.28%. As of May 31, 1996, Carl Domino Associates, L.P. and its Profit Sharing Trust may be deemed to control the Fund as a result of their beneficial ownership of shares of the Fund. As of May 31, 1996, the officers and trustees as a group may be deemed to beneficially own 2.97% of the Fund. For information concerning the purchase and redemption of shares of the Fund, see "How to Invest in the Fund" and "How to Redeem Shares" in the Fund's Prospectus. For a description of the methods used to determine the share price and value of the Fund's assets, see "Share Price Calculation" in the Fund's Prospectus. ADDITIONAL INFORMATION ABOUT FUND INVESTMENTS AND RISK CONSIDERATIONS This section contains a more detailed discussion of some of the investments the Fund may make and some of the techniques it may use, as described in the Prospectus (see "Investment Objectives and Strategies" and "Investment Policies and Techniques and Risk Considerations"). A. Equity Securities. Equity securities include common stock, preferred stock and common stock equivalents (such as convertible preferred stock, rights and warrants). Convertible preferred stock is preferred stock that can be converted into common stock pursuant to its terms. Warrants are options to purchase equity securities at a specified price valid for a specific time period. Rights are similar to warrants, but normally have a short duration and are distributed by the - 1 - issuer to its shareholders. The Fund may invest up to 5% of its net assets at the time of purchase in each of the following: rights, warrants, or convertible preferred stocks. B. Repurchase Agreements. A repurchase agreement is a short-term investment in which the purchaser (i.e., the Fund) acquires ownership of a U.S. Government obligation (which may be of any maturity) and the seller agrees to repurchase the obligation at a future time at a set price, thereby determining the yield during the purchaser's holding period (usually not more than seven days from the date of purchase). Any repurchase transaction in which the Fund engages will require full collateralization of the seller's obligation during the entire term of the repurchase agreement. In the event of a bankruptcy or other default of the seller, the Fund could experience both delays in liquidating the underlying security and losses in value. However, the Fund intends to enter into repurchase agreements only with the Custodian, other banks with assets of $1 billion or more and registered securities dealers determined by the Adviser (subject to review by the Board of Trustees) to be creditworthy. The Adviser monitors the creditworthiness of the banks and securities dealers with which the Fund engages in repurchase transactions, and the Fund will not invest more than 5% of its net assets in repurchase agreements. C. Illiquid Securities. The portfolio of the Fund may contain illiquid securities. Illiquid securities generally include securities which cannot be disposed of promptly and in the ordinary course of business without taking a reduced price. Securities may be illiquid due to contractual or legal restrictions on resale or lack of a ready market. The following securities are considered to be illiquid: repurchase agreements maturing in more than seven days, nonpublicly offered securities and restricted securities. The Fund will not invest more than 5% of its net assets in illiquid securities. D. Other Investment Companies. The Fund is permitted to invest up to 5% of its net assets in other investment companies at any time. The Fund will not purchase more than 3% of the outstanding voting stock of any investment company. If the Fund acquires securities of another investment company, the shareholders of the Fund will be subject to duplicative management fees. E. Foreign Securities. The Fund may invest in foreign equity securities including common stock, preferred stock and common stock equivalents issued by foreign companies, and foreign fixed income securities. Foreign fixed income securities include corporate debt obligations issued by foreign companies and debt obligations of foreign governments or international organizations. This category may include floating rate obligations, variable rate obligations, Yankee dollar obligations (U.S. dollar denominated obligations issued by foreign companies and traded on U.S. markets) and Eurodollar obligations (U.S. dollar denominated obligations issued by foreign companies and traded on foreign markets). Foreign government obligations generally consist of debt securities supported by national, state or provincial governments or similar political units or governmental agencies. Such obligations may or may not be backed by the national government's full faith and credit and general taxing powers. Investments in foreign securities also include obligations issued by international organizations. International organizations include entities designated or supported by governmental entities to promote economic reconstruction or development as well as international banking institutions and related government agencies. Examples are the International Bank for Reconstruction and Development (the World Bank), the European Coal and Steel Community, the Asian Development Bank and the InterAmerican Development Bank. In addition, investments in - 2 - foreign securities may include debt securities denominated in multinational currency units of an issuer (including international issuers). An example of a multinational currency unit is the European Currency Unit. A European Currency Unit represents specified amounts of the currencies of certain member states of the European Economic Community, more commonly known as the Common Market. Purchases of foreign securities are usually made in foreign currencies and, as a result, the Fund may incur currency conversion costs and may be affected favorably or unfavorably by changes in the value of foreign currencies against the U.S. dollar. In addition, there may be less information publicly available about a foreign company then about a U.S. company, and foreign companies are not generally subject to accounting, auditing and financial reporting standards and practices comparable to those in the U.S. Other risks associated with investments in foreign securities include changes in restrictions on foreign currency transactions and rates of exchanges, changes in the administrations or economic and monetary policies of foreign governments, the imposition of exchange control regulations, the possibility of expropriation decrees and other adverse foreign governmental action, the imposition of foreign taxes, less liquid markets, less government supervision of exchanges, brokers and issuers, difficulty in enforcing contractual obligations, delays in settlement of securities transactions and greater price volatility. In addition, investing in foreign securities will generally result in higher commissions than investing in similar domestic securities. F. When Issued Securities and Forward Commitments. The Fund may buy and sell securities on a when-issued or delayed delivery basis, with payment and delivery taking place at a future date. The price and interest rate that will be received on the securities are each fixed at the time the buyer enters into the commitment. The Fund may enter into such forward commitments if they hold, and maintain until the settlement date in a separate account at the Fund's Custodian, cash or U.S. government securities in an amount sufficient to meet the purchase price. Forward commitments involve a risk of loss if the value of the security to be purchased declines prior to the settlement date. Any change in value could increase fluctuations in the Fund's share price and yield. Although the Fund will generally enter into forward commitments with the intention of acquiring securities for its portfolio, the Fund may dispose of a commitment prior to the settlement if the Adviser deems it appropriate to do so. G. Collateralized Mortgage Obligations (CMOs). CMOs are securities collateralized by mortgages or mortgage-backed securities and are issued with a variety of classes or series which have different maturities and are often retired in sequence. CMOs may be issued by governmental or non-governmental entities such as banks and other mortgage lenders. Non-government securities may offer a higher yield but also may be subject to greater price fluctuation than government securities. Investments in CMOs are subject to the same risks as direct investments in the underlying mortgage and mortgage-backed securities. In addition, in the event of a bankruptcy or other default of an entity who issued the CMO held by a Fund, the Fund could experience both delays in liquidating its position and losses. - 3 - H. Financial Services Industry Obligations. The Fund may invest up to 5% of its net assets in each of the following obligations of the financial services industry: (1) Certificate of Deposit. Certificates of deposit are negotiable certificates evidencing the indebtedness of a commercial bank or a savings and loan association to repay funds deposited with it for a definite period of time (usually from fourteen days to one year) at a stated or variable interest rate. (2) Time Deposits. Time deposits are non-negotiable deposits maintained in a banking institution or a savings and loan association for a specified period of time at a stated interest rate. (3) Bankers' Acceptances. Bankers' acceptances are credit instruments evidencing the obligation of a bank to pay a draft which has been drawn on it by a customer, which instruments reflect the obligation both of the bank and of the drawer to pay the face amount of the instrument upon maturity. I. Option Transactions. The Fund may engage in option transactions involving individual securities and market indices. An option involves either (a) the right or the obligation to buy or sell a specific instrument at a specific price until the expiration date of the option, or (b) the right to receive payments or the obligation to make payments representing the difference between the closing price of a market index and the exercise price of the option expressed in dollars times a specified multiple until the expiration date of the option. Options are sold (written) on securities and market indices. The purchaser of an option on a security pays the seller (the writer) a premium for the right granted but is not obligated to buy or sell the underlying security. The purchaser of an option on a market index pays the seller a premium for the right granted, and in return the seller of such an option is obligated to make the payment. A writer of an option may terminate the obligation prior to expiration of the option by making an offsetting purchase of an identical option. Options are traded on organized exchanges and in the over-the-counter market. Options on securities which the Fund sells (writes) will be covered or secured, which means that it will own the underlying security (for a call option); will segregate with the Custodian high quality liquid debt obligations equal to the option exercise price (for a put option); or (for an option on a stock index) will hold a portfolio of securities substantially replicating the movement of the index (or, to the extent it does not hold such a portfolio, will maintain a segregated account with the Custodian of high quality liquid debt obligations equal to the market value of the option, marked to market daily). When the Fund writes options, it may be required to maintain a margin account, to pledge the underlying securities or U.S. government obligations or to deposit liquid high quality debt obligations in a separate account with the Custodian. The purchase and writing of options involves certain risks; for example, the possible inability to effect closing transactions at favorable prices and an appreciation limit on the securities set aside for settlement, as well as (in the case of options on a stock index) exposure to an indeterminate liability. The purchase of options limits the Fund's potential loss to the amount of the premium paid and can afford the Fund the opportunity to profit from favorable movements in the price of an underlying security to a greater extent than if transactions were effected in the security directly. However, the purchase of an option could result in the Fund losing a greater percentage of its investment than if the transaction were effected directly. When the Fund writes a covered call option, it will receive a premium, but it will give up the opportunity to profit from a price increase in the underlying security above the exercise price as long as its obligation as a writer continues, and it will retain the risk of loss should the price of the security decline. When the Fund writes a - 4 - covered put option, it will receive a premium, but it will assume the risk of loss should the price of the underlying security fall below the exercise price. When the Fund writes a covered put option on a stock index, it will assume the risk that the price of the index will fall below the exercise price, in which case the Fund may be required to enter into a closing transaction at a loss. An analogous risk would apply if the Fund writes a call option on a stock index and the price of the index rises above the exercise price. J. STRIPS. The Federal Reserve creates STRIPS (Separate Trading of Registered Interest and Principal of Securities) by separating the coupon payments and the principal payment from an outstanding Treasury security and selling them as individual securities. To the extent the Fund purchases the principal portion of the STRIP, the Fund will not receive regular interest payments. Instead they are sold at a deep discount from their face value. The Fund will accrue income on such STRIPS for tax and accounting purposes, in accordance with applicable law, which income is distributable to shareholders. Because no cash is received at the time such income is accrued, the Fund may be required to liquidate other portfolio securities to satisfy its distribution obligations. Because the principal portion of the STRIP does not pay current income, its price can be very volatile when interest rates change. In calculating its dividend, the Fund takes into account as income a portion of the difference between the principal portion of the STRIP's purchase price and its face value. INVESTMENT LIMITATIONS Fundamental. The investment limitations described below have been adopted by the Trust with respect to the Fund and are fundamental ("Fundamental"), i.e., they may not be changed without the affirmative vote of a majority of the outstanding shares of the Fund. As used in the Prospectus and this Statement of Additional Information, the term "majority" of the outstanding shares of the Fund means the lesser of (1) 67% or more of the outstanding shares of the Fund present at a meeting, if the holders of more than 50% of the outstanding shares of the Fund are present or represented at such meeting; or (2) more than 50% of the outstanding shares of the Fund. Other investment practices which may be changed by the Board of Trustees without the approval of shareholders to the extent permitted by applicable law, regulation or regulatory policy are considered non-fundamental ("Non-Fundamental"). 1. Borrowing Money. The Fund will not borrow money, except (a) from a bank, provided that immediately after such borrowing there is an asset coverage of 300% for all borrowings of the Fund; or (b) from a bank or other persons for temporary purposes only, provided that such temporary borrowings are in an amount not exceeding 5% of the Fund's total assets at the time when the borrowing is made. This limitation does not preclude the Fund from entering into reverse repurchase transactions, provided that the Fund has an asset coverage of 300% for all borrowings and repurchase commitments of the Fund pursuant to reverse repurchase transactions. 2. Senior Securities. The Fund will not issue senior securities. This limitation is not applicable to activities that may be deemed to involve the issuance or sale of a senior security by the Fund, provided that the Fund's engagement in such activities is (a) consistent with or permitted by the Investment Company Act of 1940, as amended, the rules and regulations promulgated thereunder or interpretations of the Securities and Exchange Commission or its staff and (b) as described in the Prospectus and this Statement of Additional Information. - 5 - 3. Underwriting. The Fund will not act as underwriter of securities issued by other persons. This limitation is not applicable to the extent that, in connection with the disposition of portfolio securities (including restricted securities), the Fund may be deemed an underwriter under certain federal securities laws. 4. Real Estate. The Fund will not purchase or sell real estate. This limitation is not applicable to investments in marketable securities which are secured by or represent interests in real estate. This limitation does not preclude the Fund from investing in mortgage-related securities or investing in companies engaged in the real estate business or that have a significant portion of their assets in real estate (including real estate investment trusts). 5. Commodities. The Fund will not purchase or sell commodities unless acquired as a result of ownership of securities or other investments. This limitation does not preclude the Fund from purchasing or selling options or futures contracts, from investing in securities or other instruments backed by commodities or from investing in companies which are engaged in a commodities business or have a significant portion of their assets in commodities. 6. Loans. The Fund will not make loans to other persons, except (a) by loaning portfolio securities, (b) by engaging in repurchase agreements, or (c) by purchasing nonpublicly offered debt securities. For purposes of this limitation, the term "loans" shall not include the purchase of a portion of an issue of publicly distributed bonds, debentures or other securities. 7. Concentration. The Fund will not invest 25% or more of its total assets in a particular industry. This limitation is not applicable to investments in obligations issued or guaranteed by the U.S. government, its agencies and instrumentalities or repurchase agreements with respect thereto. With respect to the percentages adopted by the Trust as maximum limitations on its investment policies and limitations, an excess above the fixed percentage will not be a violation of the policy or limitation unless the excess results immediately and directly from the acquisition of any security or the action taken. This paragraph does not apply to the borrowing policy set forth in paragraph 1 above. Notwithstanding any of the foregoing limitations, any investment company, whether organized as a trust, association or corporation, or a personal holding company, may be merged or consolidated with or acquired by the Trust, provided that if such merger, consolidation or acquisition results in an investment in the securities of any issuer prohibited by said paragraphs, the Trust shall, within ninety days after the consummation of such merger, consolidation or acquisition, dispose of all of the securities of such issuer so acquired or such portion thereof as shall bring the total investment therein within the limitations imposed by said paragraphs above as of the date of consummation. - 6 - Non-Fundamental. The following limitations have been adopted by the Trust with respect to the Fund and are Non-Fundamental (see "Investment Restrictions" above). i. Pledging. The Fund will not mortgage, pledge, hypothecate or in any manner transfer, as security for indebtedness, any assets of the Fund except as may be necessary in connection with borrowings described in limitation (1) above. Margin deposits, security interests, liens and collateral arrangements with respect to transactions involving options, futures contracts, short sales and other permitted investments and techniques are not deemed to be a mortgage, pledge or hypothecation of assets for purposes of this limitation. ii. Borrowing. The Fund will not purchase any security while borrowings (including reverse repurchase agreements) representing more than 5% of its total assets are outstanding. The Fund will not enter into reverse repurchase agreements. iii. Margin Purchases. The Fund will not purchase securities or evidences of interest thereon on "margin." This limitation is not applicable to short term credit obtained by the Fund for the clearance of purchases and sales or redemption of securities, or to arrangements with respect to transactions involving options, futures contracts, short sales and other permitted investments and techniques. iv. Short Sales. The Fund will not effect short sales of securities. v. Options. The Fund will not purchase or sell puts, calls, options or straddles, except as described in the Prospectus and this Statement of Additional Information. vi. Repurchase Agreements. The Fund will not invest more than 5% of its net assets in repurchase agreements. vii. Illiquid Investments. The Fund will not invest more than 5% of its net assets in securities for which there are legal or contractual restrictions on resale and other illiquid securities. Other Restrictions. To comply with the current state regulations, the Fund presently intends to observe the following restrictions, which may be changed by the Board of Trustees without shareholder approval. Texas. The Fund's investments in warrants, valued at the lower of cost or market, may not exceed 5% of its net assets. Of such 5%, no more than 2% of the Fund's net assets may be invested in warrants which are not listed on either the New York Stock Exchange or the American Stock Exchange. The Fund may not invest in oil, gas or mineral leases. The Fund may not purchase or sell real property including limited partnership interests, but excluding readily marketable interests in real estate investment trusts or readily marketable securities of companies which invest in real estate. In addition, shares of the Fund sold in Texas will be exchanged for a money market fund sponsored by AmeriPrime Funds only if such money market fund is registered in Texas. California. As long as the rules promulgated under the California Corporate Securities Law include restrictions on options transactions by an investment company, the Fund will adhere to such restrictions as interpreted by the staff of the California Department of Corporations. The Fund will limit writing of puts such that the aggregate value of the obligations underlying such puts will not exceed 50% of the Fund's net assets, and the Fund will limit the purchase of puts and calls such that the premiums paid therefor shall not exceed 20% of the net assets of the Fund. - 7 - THE INVESTMENT ADVISER The Fund's investment adviser is Carl Domino Associates, L.P., 580 Village Blvd., Suite 225, West Palm Beach, Florida 33409. Carl Domino, Inc. and CW Partners may both be deemed to control the Adviser due to their respective share of ownership of the Adviser. Under the terms of the management agreement (the "Agreement"), the Adviser manages the Fund's investments subject to approval of the Board of Trustees and pays all of the expenses of the Fund except brokerage, taxes, interest, fees and expenses of the non-interested person trustees and extraordinary expenses. As compensation for its management services and agreement to pay the Fund's expenses, the Fund is obligated to pay the Adviser a fee computed and accrued daily and paid monthly at an annual rate of 1.50% of the average daily net assets of the Fund. The Adviser may waive all or part of its fee, at any time, and at its sole discretion, but such action shall not obligate the Adviser to waive any fees in the future. The Adviser retains the right to use the name "Domino" in connection with another investment company or business enterprise with which the Adviser is or may become associated. The Trust's right to use the name "Domino" automatically ceases ninety days after termination of the Agreement and may be withdrawn by the Adviser on ninety days written notice. The Adviser may make payments to banks or other financial institutions that provide shareholder services and administer shareholder accounts. The Glass-Steagall Act prohibits banks from engaging in the business of underwriting, selling or distributing securities. Although the scope of this prohibition under the Glass-Steagall Act has not been clearly defined by the courts or appropriate regulatory agencies, management of the Fund believes that the Glass-Steagall Act should not preclude a bank from providing such services. However, state securities laws on this issue may differ from the interpretations of federal law expressed herein and banks and financial institutions may be required to register as dealers pursuant to state law. If a bank were prohibited from continuing to perform all or a part of such services, management of the Fund believes that there would be no material impact on the Fund or its shareholders. Banks may charge their customers fees for offering these services to the extent permitted by applicable regulatory authorities, and the overall return to those shareholders availing themselves of the bank services will be lower than to those shareholders who do not. The Fund may from time to time purchase securities issued by banks which provide such services; however, in selecting investments for the Fund, no preference will be shown for such securities. TRUSTEES AND OFFICERS The names of the Trustees and executive officers of the Trust are shown below. Each Trustee who is an "interested person" of the Trust, a defined in the Investment Company Act of 1940, is indicated by an asterisk. Name, Age and Address Position Principal Occupations During Past 5 Years * Kenneth D. Trumpfheller President and Trustee President, Treasurer and Secretary of AmeriPrime Financial Age: 37 Services, Inc., the Fund's administrator, and AmeriPrime Suite 200 Financial Securities, Inc., the Fund's distributor. 1793 Kingswood Drive Prior to December, 1994, a senior client executive with SEI Southlake, Texas 76092 Financial Services. - 8 - Kelli D. Shomaker, C.P.A. Secretary, Treasurer Manager of Compliance of AmeriPrime Financial Services, 1793 Kingswood Drive Inc.; Vice President, Chief Accounting Officer, Treasurer Suite 200 and Controller of United Services Advisors, Inc. and United Age: 33 Services Insurance Funds from 1994 to 1995; Vice President, Southlake, Texas 76092 Chief Accounting Officer, Treasurer, and Controller of Accolade Funds and Pauze/Swanson United Services Funds from 1993 to 1995; Controller from 1987 to 1995 and Vice President, Chief Accounting Officer and Treasurer from 1990 to 1995 of United Services Funds; Director of Security Trust & Financial Company from 1993 to 1995. Steve L. Cobb Trustee President of Clare Energy, Inc., oil and gas exploration Age: 37 company; International Marketing Manager of Carbo Ceramics 140 Mockingbird Lane Inc., oil field manufacturing/supply company. Coppell, Texas 76019 Gary E. Hippenstiel Trustee President and Director of Heritage Trust Company; Vice Age: 48 President and Chief Investment Officer of Legacy Trust 600 Jefferson Street Company; Vice President and Manager of Investments of Houston, Texas 70002 Kanaly Trust Company from 1988 to 1992.
The compensation paid to the Trustees of the Trust is set forth in the following table: Pension or Aggregate Retirement Estimated Annual Total Compensation Compensation Accrued As Part Benefits Upon from Trust (the Trust is Name from Trust (1) of Fund Expenses Retirement not in a Fund Complex) (1) Kenneth D. Trumpfheller 0 0 0 0 Steve L. Cobb $4,000 0 0 $4,000 Gary E. Hippenstiel $4,000 0 0 $4,000 1 Trustee fees are Trust expenses and each series of the Trust pays a portion of the Trustee fees. The compensation is estimated for the first full year of the Trust ending October 31, 1996.
PORTFOLIO TRANSACTIONS AND BROKERAGE Subject to policies established by the Board of Trustees of the Trust, the Adviser is responsible for the Fund's portfolio decisions and the placing of the Fund's portfolio transactions. In placing portfolio transactions, the Adviser seeks the best qualitative execution for the Fund, taking into account such factors as price (including the applicable brokerage commission or dealer spread), the execution capability, financial responsibility and responsiveness of the broker or dealer and the brokerage and research services provided by the broker or dealer. The Adviser generally seeks favorable prices and commission rates that are reasonable in relation to the benefits received. The Adviser is specifically authorized to select brokers or dealers who also provide brokerage and research services to the Fund and/or the other accounts over which the Adviser exercises investment discretion and to pay such brokers or dealers a commission in excess of the commission another broker or - 9 - dealer would charge if the Adviser determines in good faith that the commission is reasonable in relation to the value of the brokerage and research services provided. The determination may be viewed in terms of a particular transaction or the Adviser's overall responsibilities with respect to the Trust and to other accounts over which it exercises investment discretion. Research services include supplemental research, securities and economic analyses, statistical services and information with respect to the availability of securities or purchasers or sellers of securities and analyses of reports concerning performance of accounts. The research services and other information furnished by brokers through whom the Fund effects securities transactions may also be used by the Adviser in servicing all of its accounts. Similarly, research and information provided by brokers or dealers serving other clients may be useful to the Adviser in connection with its services to the Fund. Although research services and other information are useful to the Fund and the Adviser, it is not possible to place a dollar value on the research and other information received. It is the opinion of the Board of Trustees and the Adviser that the review and study of the research and other information will not reduce the overall cost to the Adviser of performing its duties to the Fund under the Agreement. Over-the-counter transactions will be placed either directly with principal market makers or with broker-dealers, if the same or a better price, including commissions and executions, is available. Fixed income securities are normally purchased directly from the issuer, an underwriter or a market maker. Purchases include a concession paid by the issuer to the underwriter and the purchase price paid to a market maker may include the spread between the bid and asked prices. To the extent that the Trust and another of the Adviser's clients seek to acquire the same security at about the same time, the Trust may not be able to acquire as large a position in such security as it desires or it may have to pay a higher price for the security. Similarly, the Trust may not be able to obtain as large an execution of an order to sell or as high a price for any particular portfolio security if the other client desires to sell the same portfolio security at the same time. On the other hand, if the same securities are bought or sold at the same time by more than one client, the resulting participation in volume transactions could produce better executions for the Trust. In the event that more than one client wants to purchase or sell the same security on a given date, the purchases and sales will normally be made by random client selection. DETERMINATION OF SHARE PRICE The price (net asset value) of the shares of the Fund is determined as of 4:00 p.m., Eastern time on each day the Trust 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 Trust is open for business on every day except Saturdays, Sundays and the following holidays: New Year's Day, President's Day, Good Friday, Memorial Day, Independence Day, Labor Day, Thanksgiving and Christmas. For a description of the methods used to determine the net asset value (share price), see "Share Price Calculation" in the Prospectus. - 10 - INVESTMENT PERFORMANCE "Average annual total return," as defined by the Securities and Exchange Commission, is computed by finding the average annual compounded rates of return (over the one and five year periods and the period from initial public offering through the end of the Fund's most recent fiscal year) that would equate the initial amount invested to the ending redeemable value, according to the following formula: P(1+T)n=ERV Where: P = a hypothetical $1,000 initial investment T = average annual total return n = number of years ERV = ending redeemable value at the end of the applicable period of the hypothetical $1,000 investment made at the beginning of the applicable period. The computation assumes that all dividends and distributions are reinvested at the net asset value on the reinvestment dates and that a complete redemption occurs at the end of the applicable period. The Fund's investment performance will vary depending upon market conditions, the composition of the Fund's portfolio and operating expenses of the Fund. These factors and possible differences in the methods and time periods used in calculating non-standardized investment performance should be considered when comparing the Fund's performance to those of other investment companies or investment vehicles. The risks associated with the Fund's investment objective, policies and techniques should also be considered. At any time in the future, investment performance may be higher or lower than past performance, and there can be no assurance that any performance will continue. From time to time, in advertisements, sales literature and information furnished to present or prospective shareholders, the performance of the Fund may be compared to indices of broad groups of unmanaged securities considered to be representative of or similar to the portfolio holdings of the Fund or considered to be representative of the stock market in general. The Fund may use the Standard & Poor's 500 Stock Index or the Dow Jones Industrial Average. In addition, the performance of the Fund may be compared to other groups of mutual funds tracked by any widely used independent research firm which ranks mutual funds by overall performance, investment objectives and assets, such as Lipper Analytical Services, Inc. or Morningstar, Inc. The objectives, policies, limitations and expenses of other mutual funds in a group may not be the same as those of the Fund. Performance rankings and ratings reported periodically in national financial publications such as Barron's and Fortune also may be used. CUSTODIAN Star Bank, N.A., 425 Walnut Street, Cincinnati, Ohio 45202, is Custodian of the Fund's investments. The Custodian acts as the Fund's depository, safekeeps its portfolio securities, collects all income and other payments with respect thereto, disburses funds at the Fund's request and maintains records in connection with its duties. - 11 - TRANSFER AGENT American Data Services, Inc., 24 W. Carver Street, Huntington, New York 11743, acts as the Fund's transfer agent and, in such capacity, maintains the records of each shareholder's account, answers shareholders' inquiries concerning their accounts, processes purchases and redemptions of the Fund's shares, acts as dividend and distribution disbursing agent and performs other accounting and shareholder service functions. In addition, American Data Services, Inc. provides the Fund with certain monthly reports, record-keeping and other management-related services. ACCOUNTANTS The firm of McCurdy & Associates, CPA's, 27955 Clemens Road, Westlake, Ohio 44145, has been selected as independent public accountants for the Trust for the fiscal year ending October 31, 1996. McCurdy & Associates performs an annual audit of the Fund's financial statements and provides financial, tax and accounting consulting services as requested. DISTRIBUTOR AmeriPrime Financial Securities, Inc., 1793 Kingswood Drive, Suite 200, Southlake, Texas 76092, is the exclusive agent for distribution of shares of the Fund. The Distributor is obligated to sell the shares of the Fund on a best efforts basis only against purchase orders for the shares. Shares of the Fund are offered to the public on a continuous basis. - 12 - To the Shareholders and Trustees Domino Equity Income Fund We have audited the accompanying balance sheet of Domino Equity Income Fund (a diversified series of AmeriPrime Funds) as of October 26, 1995. This financial statement is the responsibility of the Company's management. Our responsibility is to express an opinion on this financial statement based on our audit. We conducted our audit in accordance with generally accepted auditing standards. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the balance sheet is free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the balance sheet. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall balance sheet presentation. Our procedures included confirmation of cash held by the custodian as of October 26, 1995, by correspondence with the custodian. We believe that our audit of the balance sheet provides a reasonable basis for our opinion. In our opinion, the balance sheet referred to above presents fairly, in all material respects, the financial position of Domino Equity Income Fund as of October 26, 1995, in conformity with generally accepted accounting principles. McCurdy & Associates CPA's, Inc. Westlake, Ohio October 26, 1995 - 13 -
DOMINO EQUITY INCOME FUND STATEMENT OF ASSETS & LIABILITIES OCTOBER 26, 1995 ASSETS: Cash in Bank $25,000 Total Assets $25,000 NET ASSETS $25,000 NET ASSETS CONSIST OF: Capital Paid In $25,000 OUTSTANDING SHARES Unlimited Number of Shares Authorized Without Par Value $2,500 NET ASSET VALUE PER SHARE $10 OFFERING PRICE PER SHARE $10
See Accountant's Audit Report - 14 - DOMINO EQUITY INCOME FUND NOTES TO FINANCIAL STATEMENTS 1. ORGANIZATION Domino Equity Income Fund is a diversified series of AmeriPrime Funds an open-end investment company established under the laws of Ohio by an Agreement and Declaration of Trust dated August 8, 1995. The Trust Agreement permits the Trustees to issue an unlimited number of shares of beneficial interest of separate series without par value. The Trust uses an independent transfer agent and dividend paying agent. No transactions other than those relating to organizational matters and the sale of 2,500 shares of Domino Equity Income Fund have taken place to date. 2. RELATED PARTY TRANSACTIONS The initial purchase of Registrant's shares was made by AmeriPrime Financial Securities, Inc. (a corporation which may be deemed to be controlled by Kenneth Trumpfheller). As a result of this purchase, the Registrant may be deemed to be under common control with AmeriPrime Financial Securities, Inc. and Kenneth Trumpfheller. The Fund's distribution and administration functions are handled by AmeriPrime Financial Securities, Inc. and AmeriPrime Financial Services, Inc. respectively. These corporations may be deemed to be under the common control of Kenneth Trumpfheller who may be deemed to be a controlling person of each corporation due to his ownership of shares and his positions as an officer and director. Mr. Trumpfheller, because of such affiliation, may receive benefits from the distribution and administration fees. The Fund's investment adviser (the "Adviser") is Carl Domino Associates, L.P. Under the terms of the management agreement (the "Agreement"), the Adviser manages the Fund's investments subject to approval of the Board of Trustees and pays all of the expenses of the Fund except brokerage, taxes, interest, fees and expenses of non-interested person trustees, and extraordinary expenses. As compensation for its management services and agreement to pay the Fund's expenses, the Fund is obligated to pay the Adviser a fee computed and accrued daily and paid monthly at an annual rate of 1.50% of the average daily net assets of the Fund. Unlike most other mutual funds, the Fund does not pay directly for transfer agency, pricing, custodial, auditing or legal services, nor does it pay directly any general administrative or other operating expenses. The Adviser pays all of the expenses of the Fund except brokerage, taxes, interest, fees and expenses of non-interested person trustees, and extraordinary expenses. - 15 - DOMINO EQUITY INCOME FUND NOTES TO FINANCIAL STATEMENTS (CONT'D) 3. CAPITAL STOCK AND DISTRIBUTION At October 26, 1995 an unlimited number of shares were authorized, and paid-in capital amounted to $25,000. Transactions in capital stock were as follows: Shares sold 2,500 Shares redeemed -0- Net Increase 2,500 Shares Outstanding: Beginning of period -0- End of period 2,500 - 16 -
CARL DOMINO EQUITY INCOME FUND SCHEDULE OF INVESTMENTS April 30, 1996 (Unaudited) Shares Value - -------- --------- COMMON STOCKS 93.03% ELECTRONIC EQUIPMENT 1.30% 300 Thomas & Betts Corp. $ 11,813 ----------- PUBLISHING 1.81% 400 Reader's Digest Assn. Inc. 16,400 ----------- PUBLISHING & ENTERTAINMENT 1.57% 400 Cedar Fair LP 14,300 ----------- RETAIL 2.56% 1,100 Intimate Brands Inc. 23,237 ----------- EQUIPMENT/SERVICE/DRILLING 1.39% 600 McDermott International Inc. 12,600 ----------- OIL & GAS DOMESTIC 8.00% 500 Questar Corp. 17,500 400 Sonat Inc. 17,450 650 Sun Inc. 20,150 800 USX-Marathon Group 17,600 ----------- 72,700 ----------- The accompanying notes are an integral part of these financial statements. CARL DOMINO EQUITY INCOME FUND SCHEDULE OF INVESTMENTS April 30, 1996 (Unaudited) Shares Value - -------- ------- OIL & GAS INTERNATIONAL 4.85% 250 Mobil Corp. $ 28,750 700 YPF Sociedad Anonima ADR 15,313 ----------- 44,063 ----------- FINANCE-MISCELLANEOUS 4.23% 4,000 Hoeing Group Inc. 15,000 825 MBNA Corp. 23,409 ----------- 38,409 ----------- INSURANCE-MULTI/P & C/LIFE 8.41% 400 GCR Holdings Ltd* 10,200 400 ITT Hartford Group Inc. 19,550 500 Lincoln National Corp. 24,125 800 USLife Corp. 22,500 ----------- 76,375 ----------- MAJOR REGULAR BANKS/OTHER BANKS 6.49% 200 BankAmerica Corp. 15,150 200 Barnett Banks Inc 12,675 400 Boatmens Bancshares Inc. 15,500 400 CoreStates Financial Corp. 15,600 ----------- 58,925 ----------- The accompanying notes are an integral part of these financial statements. CARL DOMINO EQUITY INCOME FUND SCHEDULE OF INVESTMENTS April 30, 1996 (Unaudited) Shares Value - -------- ------- MONEY CENTER BANKS 2.27% 300 Chemical Bank Corp. $ 20,662 ----------- SAVINGS & LOANS 3.35% 700 Ahmanson H F & Co. 16,625 600 Great Western 13,800 ----------- 30,425 ----------- CONGLOMERATES/SPECIAL SITUATIONS 1.67% 1,000 Hanson PLC ADR 15,125 ----------- MISCELLANEOUS 3.96% 2,000 Orange PLC ADR* 36,000 ----------- REIT's 2.70% 700 Glimcher Realty Trust 11,987 600 Security Capital Pacific Trust 12,525 ----------- 24,512 ----------- CHEMICAL 2.25% 600 Witco Corp. 20,475 ----------- The accompanying notes are an integral part of these financial statements. CARL DOMINO EQUITY INCOME FUND SCHEDULE OF INVESTMENTS April 30, 1996 (Unaudited) Shares Value - -------- -------- PAPER & FOREST PRODUCTS/PACKAGING 3.72% 303 International Paper Co. $12,082 400 Union Camp Corp. 21,750 ----------- 33,832 ----------- COSMETICS 2.11% 400 Tambrands Inc. 19,150 ----------- DIVERIFIED/SUPPLIES/HOSPITALS/NURSING 2.30% 400 US Healthcare Inc. 20,850 ----------- DRUGS 9.62% 1,000 Adac Labs 16,375 150 American Home Products Corp. 15,825 800 Glaxo Welcome PLC ADR 19,300 500 Pharmacia & Upjohn Inc. 19,125 150 Warner Lambert Co. 16,763 ----------- 87,388 ----------- FOOD 3.32% 300 General Mills 16,650 400 Heinz H J Co. 13,550 ----------- 30,200 ----------- HEALTHCARE 0.97% 200 Baxter International Inc. 8,850 ----------- The accompanying notes are an integral part of these financial statements. CARL DOMINO EQUITY INCOME FUND SCHEDULE OF INVESTMENTS April 30, 1996 (Unaudited) Shares Value - -------- ------- STAPLES/MISCELLANEOUS SERVICES 6.06% 600 Block H & R Inc. $ 21,075 300 Deluxe Corp. 10,500 1,250 New England Business Service Inc. 23,438 ----------- 55,013 ----------- TOBACCO 1.49% 150 Phillip Morris Cos. Inc. 13,519 ----------- COMPUTER SOFTWARE & SERVICE 1.57% 500 Compuserve Corp.* 14,250 ----------- PHOTOGRAPHY/OFFICE EQUIPMENT 3.13% 200 Eastman Kodak Co. 15,300 200 Minnesota Mining & Manufacturing Co. 13,150 ----------- 28,450 ----------- UTILITIES 1.93% 600 Telefonica de Argentina S A ADR 17,550 ----------- TOTAL COMMON STOCKS (COST $793,969) 845,073 ----------- TOTAL INVESTMENTS (Cost $793,969) 93.03% 845,073 Other Assets less Liabilities 6.97% 63,310 -------- ----------- TOTAL NET ASSETS 100.00% $ 908,383 ======== =========== *Non-Income producing securities.
The accompanying notes are an integral part of these financial statements.
CARL DOMINO EQUITY INCOME FUND STATEMENT OF ASSETS AND LIABILITIES April 30, 1996 (Unaudited) ASSETS: Investment in common stock at market value (identified cost--$793,969)(Note 1)............................ $845,073 Cash............................................................. 88,232 Receivable for securities sold................................... 13,876 Receivable for Fund shares sold.................................. 5,000 Dividends and interest receivable................................ 710 --------- TOTAL ASSETS.................................. 952,891 --------- LIABILITIES: Payable for securities purchased................................. 42,928 Accrued advisory fee............................................. 1,147 Accrued operating expenses....................................... 433 --------- TOTAL LIABILITIES............................. 44,508 --------- NET ASSETS (equivalent to $11.09 per share based on 81,932 shares of common stock outstanding)--(Note 4)...... $908,383 ========= NET ASSETS CONSIST OF: Paid in capital (Note 4)....................................... $844,136 Undistributed net investment income/(loss)..................... 2,622 Accumulated undistributed net realized gain/(loss) from security transactions................................................. 10,521 Net unrealized appreciation/(depreciation) of investments........ 51,104 --------- NET ASSETS APRIL 30, 1996........................................ $908,383 =========
The accompanying notes are an integral part of these financial statements.
CARL DOMINO EQUITY INCOME FUND STATEMENT OF OPERATIONS For the period from November 6, 1995 (Commencement of Operations) through April 30, 1996 (Unaudited) INVESTMENT INCOME: Dividends...................................................... $7,289 Interest....................................................... 242 --------- TOTAL INVESTMENT INCOME..................................... 7,531 --------- OPERATING EXPENSES: Investment advisory fee (Note 3)............................... 4,076 Trustees' fees................................................. 833 --------- TOTAL OPERATING EXPENSES..................................... 4,909 --------- NET INVESTMENT INCOME/(LOSS)................................. 2,622 --------- NET REALIZED AND UNREALIZED GAINS/(LOSSES) ON INVESTMENTS: Net realized gain/(loss) on security transactions.............. 10,521 Net change in unrealized appreciation/(depreciation) on investments.................................................. 51,104 --------- NET GAIN/(LOSS) ON INVESTMENTS................................ 61,625 --------- NET INCREASE/(DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS................................................... $64,247 =========
The accompanying notes are an integral part of these financial statements.
CARL DOMINO EQUITY INCOME FUND STATEMENT OF CHANGES IN NET ASSETS For the period ended April 30, 1996 (Unaudited) INCREASE/(DECREASE) IN NET ASSETS FROM OPERATIONS: Net investment income/(loss)................................... $ 2,622 Net realized gain/(loss) from securities transactions.......... 10,521 Net change in unrealized appreciation/(depreciation) of investments during the period........................................... 51,104 --------- NET INCREASE/(DECREASE) IN NET ASSETS FROM OPERATIONS.................................................. 64,247 --------- DISTRIBUTION TO SHAREHOLDERS: Net investment income......................................... 0 Realized gain................................................. 0 --------- 0 --------- FUND SHARE TRANSACTIONS: Shares sold.................................................... 826,032 Shares issued in reinvestment of dividends..................... 0 Shares redeemed................................................ (6,896) --------- TOTAL CAPITAL STOCK 819,136 --------- NET INCREASE/(DECREASE) IN NET ASSETS............................ 883,382 --------- NET ASSETS: Beginning of period........................................... 25,000 --------- End of period.................................................. 908,383 =========
The accompanying notes are an integral part of these financial statements.
CARL DOMINO EQUITY INCOME FUND FINANCIAL HIGHLIGHTS For a share outstanding throughout the period from November 6, 1995 (Commencement of Operations) through April 30, 1996 (Unaudited) Net asset value - beginning of period.......................... $10.00 -------- Income from investment operations: Net investment income.......................................... .04 Net gain on investments both realized and unrealized........... 1.05 -------- Total from investment operations............................... 1.09 -------- Less distributions: Dividends from net investment income........................... 0 Dividends from capital gains................................... 0 -------- Net asset value- end of period................................. $11.09 ======== Total Return**................................................. 26.25% Ratio/supplemental data: Net assets, end of period (in 000's)........................... 908 Ratio of expenses to average net assets**...................... 1.79% Ratio of net investment income to average net assets**......... .96% Portfolio turnover rate........................................ 26.00% Average Commission rate paid................................... .0538 ** Annualized
The accompanying notes are an integral part of these financial statements. CARL DOMINO EQUITY INCOME FUND Notes to Financial Statements April 30, 1996 (Unaudited) 1. ORGANIZATION The Carl Domino Equity Income Fund (the "Fund") was organized as a series of the AmeriPrime Funds, an Ohio business trust (the "Trust"), on August 8, 1995, and commenced operations on November 6, 1995. The Trust is registered under the Investment Company Act of 1940, as amended, as a diversified series, open end management investment company. The Trust Agreement permits the Trustees to issue an unlimited number of shares of beneficial interest of separate series without par value. 2. SIGNIFICANT ACCOUNTING POLICIES The following is a summary of significant accounting policies followed by the Fund in the preparation of its financial statements. Securities Valuations - Securities which are traded on any exchange or on the NASDAQ over-the-counter market are valued at the last quoted sale price. Lacking a last sale price, a security is valued at its last bid price except when, in the Adviser's opinion the last bid price does not accurately reflect the current value of the security. All other securities for which over-the- counter market quotations are readily available are valued at their last bid price. When market quotations are not readily available, when the Adviser determines the last bid price does not accurately reflect the current value or when restricted securities are being valued, such securities are valued as determined in good faith by the Adviser, in conformity with guidelines adopted by and subject to review of the Board of Trustees of the Trust. Fixed income securities generally are valued by using market quotations, but may be valued on the basis of prices furnished by a pricing service when the Adviser believes such prices accurately reflect the fair market value of such securities. A pricing service utilizes electronic data processing techniques based on yield spreads relating to securities with similar characteristics to determine prices for normal institutional-size trading units of debt securities without regard to sale or bid prices. When prices are not readily available from a pricing service, or when restricted or illiquid securities are being valued, securities are valued at fair value as determined in good faith by the Adviser, subject to review of the Board of Trustees. Short term investments in fixed income securities with maturities of less than 60 days when acquired, or which subsequently are within 60 days of maturity, are valued by using the amortized cost method of valuation, which the Board has determined will represent fair value. CARL DOMINO EQUITY INCOME FUND Notes to Financial Statements April 30, 1996 (Unaudited) Federal Income Taxes - The Fund intends to qualify each year as a "regulated investment company" under 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 it distributes substantially all of its net investment income and any realized capital gains. Dividends and Distributions - The Fund intends to distribute substantially all of its net investment income as dividends to its shareholders on an annual basis. The Fund intends to distribute its net long term capital gains and its net short term capital gains at least once a year. Other - The Fund follows industry practice and records security transactions on the trade date. The specific identification method is used for determining gains or losses for financial statements and income tax purposes. Dividend income is recorded on the ex-dividend date and interest income is recorded on an accrual basis. NOTE 3. INVESTMENT ADVISORY AGREEMENT The Fund retains Carl Domino Associates, L.P. (the "Adviser") to manage the Fund's investments. The Adviser is a limited partnership organized in Delaware and its general partner is Carl Domino, Inc. The controlling shareholder of Carl Domino, Inc. is Carl Domino. Mr. Domino is primarily responsible for the day to day managment of the Fund's portfolio. Under the terms of the management agreement, (the "Agreement"), the Adviser manages the Fund's investments subject to approval of the Board of Trustees and pays all of the expenses of the Fund except brokerage, taxes, interest, fees and expenses of non-interested persons, trustees, and extraordinary expenses. As compensation for its management services and agreement to pay the Fund's expenses, the Fund is obligated to pay the Adviser a fee computed and accrued daily and paid monthly at an annual rate of 1.50% of the average daily net assets of the Fund. The rate of the advisory fees paid by most investment companies to their investment advisers is lower than the rate of the advisory fees paid by the Fund. In this regard, it should be noted that most investment companies pay their own operating expenses directly, while the Fund's expenses, except those specified above, are paid by the Adviser. For the period from November 6, 1995 through April 30, 1996, the Adviser has received a fee of $4,076 from the Fund. CARL DOMINO EQUITY INCOME FUND Notes to Financial Statements April 30, 1996 (Unaudited) NOTE 4. CAPITAL SHARE TRANSACTIONS As of April 30, 1996 there was an unlimited number of no par value shares of capital stock authorized for the Fund. Transactions in capital stock were as follows: For the period from November 6, 1995 (Commencement of Operations) through April 30, 1996 Shares Amount --------- ---------- Shares sold 80,072 $826,032 Shares issued in reinvestment of dividends 0 0 Shares redeemed (640) (6,896) --------- --------- Net increase 79,432 $819,136 ========= ========= Total paid in capital $844,136 ========
NOTE 5. INVESTMENTS For the period from November 6, 1995 (commencement of operations) through April 30, 1996, purchases and sales of investment securities, other than short- term investments, aggregated $949,075 and $152,797 respectively. The gross unrealized appreciation for all securities totaled $61,176 and the gross unrealized depreciation for all securities totaled $10,072 for a net unrealized appreciation of $51,104. The aggregate cost of securities for federal income tax purposes at April 30, 1996 was $793,969. GLOBALT GROWTH FUND STATEMENT OF ADDITIONAL INFORMATION JUNE 28, 1996 This Statement of Additional Globalt Growth Information is not a prospectus. It should be read in conjunction with the Prospectus of GLOBALT Growth Fund dated January 1, 1996, and the Supplement to the Prospectus dated June 28, 1996. A copy of the Prospectus can be obtained by writing the Transfer Agent at 24 W. Carver Street, Huntington, New York 11743, or by calling 1-800-831-9922. STATEMENT OF ADDITIONAL INFORMATION TABLE OF CONTENTS PAGE DESCRIPTION OF THE TRUST. . . . . . . . . . . . . . . . . . . . . . . . . 1 ADDITIONAL INFORMATION ABOUT FUND INVESTMENTS AND RISK CONSIDERATIONS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 INVESTMENT LIMITATIONS. . . . . . . . . . . . . . . . . . . . . . . . . . 4 THE INVESTMENT ADVISER. . . . . . . . . . . . . . . . . . . . . . . . . . 6 TRUSTEES AND OFFICERS . . . . . . . . . . . . . . . . . . . . . . . . . . 7 PORTFOLIO TRANSACTIONS AND BROKERAGE. . . . . . . . . . . . . . . . . . . 8 DETERMINATION OF SHARE PRICE. . . . . . . . . . . . . . . . . . . . . . . 9 INVESTMENT PERFORMANCE. . . . . . . . . . . . . . . . . . . . . . . . . . 9 CUSTODIAN . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10 TRANSFER AGENT. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10 ACCOUNTANTS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10 DISTRIBUTOR . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10 DESCRIPTION OF THE TRUST Globalt Growth Fund (the "Fund") was organized as a series of AmeriPrime Funds (the "Trust"). The Trust is an open-end investment company established under the laws of Ohio by an Agreement and Declaration of Trust dated August 8, 1995 (the "Trust Agreement"). The Trust Agreement permits the Trustees to issue an unlimited number of shares of beneficial interest of separate series without par value. The Fund is one of a series of funds currently authorized by the Trustees. Each share of a series represents an equal proportionate interest in the assets and liabilities belonging to that series with each other share of that series and is entitled to such dividends and distributions out of income belonging to the series as are declared by the Trustees. The shares do not have cumulative voting rights or any preemptive or conversion rights, and the Trustees have the authority from time to time to divide or combine the shares of any series into a greater or lesser number of shares of that series so long as the proportionate beneficial interest in the assets belonging to that series and the rights of shares of any other series are in no way affected. In case of any liquidation of a series, the holders of shares of the series being liquidated will be entitled to receive as a class a distribution out of the assets, net of the liabilities, belonging to that series. Expenses attributable to any series are borne by that series. Any general expenses of the Trust not readily identifiable as belonging to a particular series are allocated by or under the direction of the Trustees in such manner as the Trustees determine to be fair and equitable. No shareholder is liable to further calls or to assessment by the Trust without his or her express consent. As of May 31, 1996, the following persons may be deemed to beneficially own five percent (5%) or more of the Fund: Samuel Emory Allen IRA, 3060 Peachtree Road, Atlanta, Georgia - 19.47%; Kenneth and Ann Horne, 4972 Heather Point, Birmingham, Alabama - 9.13%; Carlton's Management Trust, 4972 Heather Point, Birmingham, Alabama - 6.32%; The Norwood Clinic, Inc., P.O. Box 2554, Birmingham, Alabama - 5.65%; Brenda M. Hackney, 2 Office Park Circle, Birmingham, Alabama - 8.95%; Management Psychology Group Pension Plan, 3340 Peachtree Road, N.E., Atlanta, Georgia - 11.62%; Management Psychology Group Profit Sharing Trust - 15.01%. As of May 31, 1996, Management Psychology Group Pension Plan and Management Psychology Group Profit Sharing Trust may be deemed to control the Fund as a result of their beneficial ownership of the shares of the Fund. As of May 31, 1996, the officers and trustees as a group may be deemed to beneficially own 1.36% of the Fund. For information concerning the purchase and redemption of shares of the Fund, see "How to Invest in the Fund" and "How to Redeem Shares" in the Fund's Prospectus. For a description of the methods used to determine the share price and value of the Fund's assets, see "Share Price Calculation" in the Fund's Prospectus. - 1 - ADDITIONAL INFORMATION ABOUT FUND INVESTMENTS AND RISK CONSIDERATIONS This section contains a more detailed discussion of some of the investments the Fund may make and some of the techniques it may use, as described in the Prospectus (see "Investment Objectives and Strategies" and "Investment Policies and Techniques and Risk Considerations"). A. Equity Securities. Equity securities include common stock, preferred stock and common stock equivalents (such as convertible preferred stock, rights and warrants). Convertible preferred stock is preferred stock that can be converted into common stock pursuant to its terms. Warrants are options to purchase equity securities at a specified price valid for a specific time period. Rights are similar to warrants, but normally have a short duration and are distributed by the issuer to its shareholders. The Fund may invest up to 5% of its net assets at the time of purchase in each of the following: rights, warrants, or convertible preferred stocks. B. Repurchase Agreements. A repurchase agreement is a short-term investment in which the purchaser (i.e., the Fund) acquires ownership of a U.S. Government obligation (which may be of any maturity) and the seller agrees to repurchase the obligation at a future time at a set price, thereby determining the yield during the purchaser's holding period (usually not more than seven days from the date of purchase). Any repurchase transaction in which the Fund engages will require full collateralization of the seller's obligation during the entire term of the repurchase agreement. In the event of a bankruptcy or other default of the seller, the Fund could experience both delays in liquidating the underlying security and losses in value. However, the Fund intends to enter into repurchase agreements only with the Custodian, other banks with assets of $1 billion or more and registered securities dealers determined by the Adviser (subject to review by the Board of Trustees) to be creditworthy. The Adviser monitors the creditworthiness of the banks and securities dealers with which the Fund engages in repurchase transactions, and the Fund will not invest more than 5% of its net assets in repurchase agreements. C. Other Investment Companies. The Fund is permitted to invest in other investment companies at any time. The Fund will not purchase more than 3% of the outstanding voting stock of any investment company. If the Fund acquires securities of another investment company, the shareholders of the Fund will be subject to duplicative management fees. D. Financial Services Industry Obligations. The Fund may invest up to 5% of its net assets in each of the following obligations of the financial services industry: (1) Certificate of Deposit. Certificates of deposit are negotiable certificates evidencing the indebtedness of a commercial bank or a savings and loan association to repay funds deposited with it for a definite period of time (usually from fourteen days to one year) at a stated or variable interest rate. (2) Time Deposits. Time deposits are non-negotiable deposits maintained in a banking institution or a savings and loan association for a specified period of time at a stated interest rate. - 2 - (3) Bankers' Acceptances. Bankers' acceptances are credit instruments evidencing the obligation of a bank to pay a draft which has been drawn on it by a customer, which instruments reflect the obligation both of the bank and of the drawer to pay the face amount of the instrument upon maturity. E. Option Transactions. The Fund may engage in option transactions involving individual securities and market indices. An option involves either (a) the right or the obligation to buy or sell a specific instrument at a specific price until the expiration date of the option, or (b) the right to receive payments or the obligation to make payments representing the difference between the closing price of a market index and the exercise price of the option expressed in dollars times a specified multiple until the expiration date of the option. Options are sold (written) on securities and market indices. The purchaser of an option on a security pays the seller (the writer) a premium for the right granted but is not obligated to buy or sell the underlying security. The purchaser of an option on a market index pays the seller a premium for the right granted, and in return the seller of such an option is obligated to make the payment. A writer of an option may terminate the obligation prior to expiration of the option by making an offsetting purchase of an identical option. Options are traded on organized exchanges and in the over-the-counter market. Options on securities which the Fund sells (writes) will be covered or secured, which means that it will own the underlying security (for a call option); will segregate with the Custodian high quality liquid debt obligations equal to the option exercise price (for a put option); or (for an option on a stock index) will hold a portfolio of securities substantially replicating the movement of the index (or, to the extent it does not hold such a portfolio, will maintain a segregated account with the Custodian of high quality liquid debt obligations equal to the market value of the option, marked to market daily). When the Fund writes options, it may be required to maintain a margin account, to pledge the underlying securities or U.S. government obligations or to deposit liquid high quality debt obligations in a separate account with the Custodian. The purchase and writing of options involves certain risks; for example, the possible inability to effect closing transactions at favorable prices and an appreciation limit on the securities set aside for settlement, as well as (in the case of options on a stock index) exposure to an indeterminate liability. The purchase of options limits the Fund's potential loss to the amount of the premium paid and can afford the Fund the opportunity to profit from favorable movements in the price of an underlying security to a greater extent than if transactions were effected in the security directly. However, the purchase of an option could result in the Fund losing a greater percentage of its investment than if the transaction were effected directly. When the Fund writes a covered call option, it will receive a premium, but it will give up the opportunity to profit from a price increase in the underlying security above the exercise price as long as its obligation as a writer continues, and it will retain the risk of loss should the price of the security decline. When the Fund writes a covered put option, it will receive a premium, but it will assume the risk of loss should the price of the underlying security fall below the exercise price. When the Fund writes a covered put option on a stock index, it will assume the risk that the price of the index will fall below the exercise price, in which case the Fund may be required to enter into a closing transaction at a loss. An analogous risk would apply if the Fund writes a call option on a stock index and the price of the index rises above the exercise price. - 3 - INVESTMENT LIMITATIONS Fundamental. The investment limitations described below have been adopted by the Trust with respect to the Fund and are fundamental ("Fundamental"), i.e., they may not be changed without the affirmative vote of a majority of the outstanding shares of the Fund. As used in the Prospectus and this Statement of Additional Information, the term "majority" of the outstanding shares of the Fund means the lesser of (1) 67% or more of the outstanding shares of the Fund present at a meeting, if the holders of more than 50% of the outstanding shares of the Fund are present or represented at such meeting; or (2) more than 50% of the outstanding shares of the Fund. Other investment practices which may be changed by the Board of Trustees without the approval of shareholders to the extent permitted by applicable law, regulation or regulatory policy are considered non-fundamental ("Non-Fundamental"). 1. Borrowing Money. The Fund will not borrow money, except (a) from a bank, provided that immediately after such borrowing there is an asset coverage of 300% for all borrowings of the Fund; or (b) from a bank or other persons for temporary purposes only, provided that such temporary borrowings are in an amount not exceeding 5% of the Fund's total assets at the time when the borrowing is made. This limitation does not preclude the Fund from entering into reverse repurchase transactions, provided that the Fund has an asset coverage of 300% for all borrowings and repurchase commitments of the Fund pursuant to reverse repurchase transactions. 2. Senior Securities. The Fund will not issue senior securities. This limitation is not applicable to activities that may be deemed to involve the issuance or sale of a senior security by the Fund, provided that the Fund's engagement in such activities is (a) consistent with or permitted by the Investment Company Act of 1940, as amended, the rules and regulations promulgated thereunder or interpretations of the Securities and Exchange Commission or its staff and (b) as described in the Prospectus and this Statement of Additional Information. 3. Underwriting. The Fund will not act as underwriter of securities issued by other persons. This limitation is not applicable to the extent that, in connection with the disposition of portfolio securities (including restricted securities), the Fund may be deemed an underwriter under certain federal securities laws. 4. Real Estate. The Fund will not purchase or sell real estate. This limitation is not applicable to investments in marketable securities which are secured by or represent interests in real estate. This limitation does not preclude the Fund from investing in mortgage-related securities or investing in companies engaged in the real estate business or have a significant portion of their assets in real estate (including real estate investment trusts). 5. Commodities. The Fund will not purchase or sell commodities unless acquired as a result of ownership of securities or other investments. This limitation does not preclude the Fund from purchasing or selling options or futures contracts, from investing in securities or other instruments backed by commodities or from investing in companies which are engaged in a commodities business or have a significant portion of their assets in commodities. 6. Loans. The Fund will not make loans to other persons, except (a) by loaning portfolio securities, (b) by engaging in repurchase agreements, or - 4 - (c) by purchasing nonpublicly offered debt securities. For purposes of this limitation, the term "loans" shall not include the purchase of a portion of an issue of publicly distributed bonds, debentures or other securities. 7. Concentration. The Fund will not invest 25% or more of its total assets in a particular industry. This limitation is not applicable to investments in obligations issued or guaranteed by the U.S. government, its agencies and instrumentalities or repurchase agreements with respect thereto. With respect to the percentages adopted by the Trust as maximum limitations on its investment policies and limitations, an excess above the fixed percentage will not be a violation of the policy or limitation unless the excess results immediately and directly from the acquisition of any security or the action taken. This paragraph does not apply to the borrowing policy set forth in paragraph 1 above. Notwithstanding any of the foregoing limitations, any investment company, whether organized as a trust, association or corporation, or a personal holding company, may be merged or consolidated with or acquired by the Trust, provided that if such merger, consolidation or acquisition results in an investment in the securities of any issuer prohibited by said paragraphs, the Trust shall, within ninety days after the consummation of such merger, consolidation or acquisition, dispose of all of the securities of such issuer so acquired or such portion thereof as shall bring the total investment therein within the limitations imposed by said paragraphs above as of the date of consummation. Non-Fundamental. The following limitations have been adopted by the Trust with respect to the Fund and are Non-Fundamental (see "Investment Restrictions" above). i. Pledging. The Fund will not mortgage, pledge, hypothecate or in any manner transfer, as security for indebtedness, any assets of the Fund except as may be necessary in connection with borrowings described in limitation (1) above. Margin deposits, security interests, liens and collateral arrangements with respect to transactions involving options, futures contracts, short sales and other permitted investments and techniques are not deemed to be a mortgage, pledge or hypothecation of assets for purposes of this limitation. ii. Borrowing. The Fund will not purchase any security while borrowings (including reverse repurchase agreements) representing more than 5% of its total assets are outstanding. The Fund will not enter into reverse repurchase agreements. iii. Margin Purchases. The Fund will not purchase securities or evidences of interest thereon on "margin." This limitation is not applicable to short term credit obtained by the Fund for the clearance of purchases and sales or redemption of securities, or to arrangements with respect to transactions involving options, futures contracts, short sales and other permitted investments and techniques. iv. Short Sales. The Fund will not effect short sales of securities unless it owns or has the right to obtain securities equivalent in kind and amount to the securities sold short. - 5 - v. Options. The Fund will not purchase or sell puts, calls, options or straddles, except as described in the Prospectus and this Statement of Additional Information. vi. Repurchase Agreements. The Fund will not invest more than 5% of its net assets in repurchase agreements. vii. Illiquid Investments. The Fund will not invest in securities for which there are legal or contractual restrictions on resale and other illiquid securities. California. As long as the rules promulgated under the California Corporate Securities Law include restrictions on options transactions by an investment company, the Fund will adhere to such restrictions as interpreted by the staff of the California Department of Corporations. The Fund will limit writing of puts such that the aggregate value of the obligations underlying such puts will not exceed 50% of the Fund's net assets, and the Fund will limit the purchase of puts and calls such that the premiums paid therefor shall not exceed 20% of the net assets of the Fund. THE INVESTMENT ADVISER The Fund's investment adviser is Globalt, Inc., 3060 Peachtree Road, N.W., One Buckhead Plaza, Suite 225, Atlanta, Georgia 30305. Angela and Samuel Allen may each be deemed to be a controlling person of the Adviser due to their ownership of its shares and their respective positions as president and chairman of the Adviser. Under the terms of the management agreement (the "Agreement"), the Adviser manages the Fund's investments subject to approval of the Board of Trustees and pays all of the expenses of the Fund except brokerage, taxes, interest, fees and expenses of the non-interested person trustees and extraordinary expenses. As compensation for its management services and agreement to pay the Fund's expenses, the Fund is obligated to pay the Adviser a fee computed and accrued daily and paid monthly at an annual rate of 1.17% of the average daily net assets of the Fund. The Adviser may waive all or part of its fee, at any time, and at its sole discretion, but such action shall not obligate the Adviser to waive any fees in the future. The Adviser retains the right to use the name "Globalt" in connection with another investment company or business enterprise with which the Adviser is or may become associated. The Trust's right to use the name "Globalt" automatically ceases ninety days after termination of the Agreement and may be withdrawn by the Adviser on ninety days written notice. The Adviser may make payments to banks or other financial institutions that provide shareholder services and administer shareholder accounts. The Glass-Steagall Act prohibits banks from engaging in the business of underwriting, selling or distributing securities. Although the scope of this prohibition under the Glass-Steagall Act has not been clearly defined by the courts or appropriate regulatory agencies, management of the Fund believes that the Glass-Steagall Act should not preclude a bank from providing such services. However, state securities laws on this issue may differ from the interpretations of federal law expressed herein and banks and financial institutions may be required to register as dealers pursuant to state law. If a bank were prohibited from continuing to perform all or a part of such services, management of the Fund believes that there would be no material impact on the Fund or its shareholders. Banks may charge their customers fees for offering these services to the extent permitted by applicable regulatory authorities, and the overall return to those shareholders availing themselves of the bank services will be lower than to those shareholders who do not. The Fund may from time to time purchase securities issued by banks which provide such services; however, in selecting investments for the Fund, no preference will be shown for such securities. - 6 - TRUSTEES AND OFFICERS The names of the Trustees and executive officers of the Trust are shown below. Each Trustee who is an "interested person" of the Trust, a defined in the Investment Company Act of 1940, is indicated by an asterisk. Name, Age and Address Position Principal Occupations During Past 5 Years * Kenneth D. Trumpfheller President and Trustee President, Treasurer and Secretary of AmeriPrime Financial Age: 37 Services, Inc., the Fund's administrator, and AmeriPrime Suite 200 Financial Securities, Inc., the Fund's distributor. 1793 Kingswood Drive Prior to December, 1994, a senior client executive with SEI Southlake, Texas 76092 Financial Services. Kelli D. Shomaker, C.P.A. Secretary, Treasurer Manager of Compliance of AmeriPrime Financial Services, 1793 Kingswood Drive Inc.; Vice President, Chief Accounting Officer, Treasurer Suite 200 and Controller of United Services Advisors, Inc. and United Age: 33 Services Insurance Funds from 1994 to 1995; Vice President, Southlake, Texas 76092 Chief Accounting Officer, Treasurer, and Controller of Accolade Funds and Pauze/Swanson United Services Funds from 1993 to 1995; Controller from 1987 to 1995 and Vice President, Chief Accounting Officer and Treasurer from 1990 to 1995 of United Services Funds; Director of Security Trust & Financial Company from 1993 to 1995. Steve L. Cobb Trustee President of Clare Energy, Inc., oil and gas exploration Age: 37 company; International Marketing Manager of Carbo Ceramics 140 Mockingbird Lane Inc., oil field manufacturing/supply company. Coppell, Texas 76019 Gary E. Hippenstiel Trustee President and Director of Heritage Trust Company; Vice Age: 48 President and Chief Investment Officer of Legacy Trust 600 Jefferson Street Company; Vice President and Manager of Investments of Houston, Texas 70002 Kanaly Trust Company from 1988 to 1992.
The compensation paid to the Trustees of the Trust is set forth in the following table: Pension or Aggregate Retirement Estimated Annual Total Compensation Compensation Accrued As Part Benefits Upon from Trust (the Trust is Name from Trust (1) of Fund Expenses Retirement not in a Fund Complex) (1) Kenneth D. Trumpfheller 0 0 0 0 Steve L. Cobb $4,000 0 0 $4,000 Gary E. Hippenstiel $4,000 0 0 $4,000 1 Trustee fees are Trust expenses and each series of the Trust pays a portion of the Trustee fees. The compensation is estimated for the first full year of the Trust ending October 31, 1996.
- 7 - PORTFOLIO TRANSACTIONS AND BROKERAGE Subject to policies established by the Board of Trustees of the Trust, the Adviser is responsible for the Fund's portfolio decisions and the placing of the Fund's portfolio transactions. In placing portfolio transactions, the Adviser seeks the best qualitative execution for the Fund, taking into account such factors as price (including the applicable brokerage commission or dealer spread), the execution capability, financial responsibility and responsiveness of the broker or dealer and the brokerage and research services provided by the broker or dealer. The Adviser generally seeks favorable prices and commission rates that are reasonable in relation to the benefits received. The Adviser is specifically authorized to select brokers or dealers who also provide brokerage and research services to the Fund and/or the other accounts over which the Adviser exercises investment discretion and to pay such brokers or dealers a commission in excess of the commission another broker or dealer would charge if the Adviser determines in good faith that the commission is reasonable in relation to the value of the brokerage and research services provided. The determination may be viewed in terms of a particular transaction or the Adviser's overall responsibilities with respect to the Trust and to other accounts over which it exercises investment discretion. Research services include supplemental research, securities and economic analyses, statistical services and information with respect to the availability of securities or purchasers or sellers of securities and analyses of reports concerning performance of accounts. The research services and other information furnished by brokers through whom the Fund effects securities transactions may also be used by the Adviser in servicing all of its accounts. Similarly, research and information provided by brokers or dealers serving other clients may be useful to the Adviser in connection with its services to the Fund. Although research services and other information are useful to the Fund and the Adviser, it is not possible to place a dollar value on the research and other information received. It is the opinion of the Board of Trustees and the Adviser that the review and study of the research and other information will not reduce the overall cost to the Adviser of performing its duties to the Fund under the Agreement. Over-the-counter transactions will be placed either directly with principal market makers or with broker-dealers, if the same or a better price, including commissions and executions, is available. Fixed income securities are normally purchased directly from the issuer, an underwriter or a market maker. Purchases include a concession paid by the issuer to the underwriter and the purchase price paid to a market maker may include the spread between the bid and asked prices. To the extent that the Trust and another of the Adviser's clients seek to acquire the same security at about the same time, the Trust may not be able to acquire as large a position in such security as it desires or it may have to pay a higher price for the security. Similarly, the Trust may not be able to obtain as large an execution of an order to sell or as high a price for any particular portfolio security if the other client desires to sell the same portfolio security at the same time. On the other hand, if the same securities are bought or sold at the same time by more than one client, the resulting participation in volume transactions could produce better executions for the Trust. In the event that more than one client wants to purchase or sell the same security on a given date, the purchases and sales will normally be made by random client selection. - 8 - DETERMINATION OF SHARE PRICE The price (net asset value) of the shares of the Fund is determined as of 4:00 p.m., Eastern time on each day the Trust 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 Trust is open for business on every day except Saturdays, Sundays and the following holidays: New Year's Day, President's Day, Good Friday, Memorial Day, Independence Day, Labor Day, Thanksgiving and Christmas. For a description of the methods used to determine the net asset value (share price), see "Share Price Calculation" in the Prospectus. INVESTMENT PERFORMANCE "Average annual total return," as defined by the Securities and Exchange Commission, is computed by finding the average annual compounded rates of return (over the one and five year periods and the period from initial public offering through the end of the Fund's most recent fiscal year) that would equate the initial amount invested to the ending redeemable value, according to the following formula: P(1+T)n=ERV Where: P = a hypothetical $1,000 initial investment T = average annual total return n = number of years ERV = ending redeemable value at the end of the applicable period of the hypothetical $1,000 investment made at the beginning of the applicable period. The computation assumes that all dividends and distributions are reinvested at the net asset value on the reinvestment dates and that a complete redemption occurs at the end of the applicable period. The Fund's investment performance will vary depending upon market conditions, the composition of the Fund's portfolio and operating expenses of the Fund. These factors and possible differences in the methods and time periods used in calculating non-standardized investment performance should be considered when comparing the Fund's performance to those of other investment companies or investment vehicles. The risks associated with the Fund's investment objective, policies and techniques should also be considered. At any time in the future, investment performance may be higher or lower than past performance, and there can be no assurance that any performance will continue. From time to time, in advertisements, sales literature and information furnished to present or prospective shareholders, the performance of the Fund may be compared to indices of broad groups of unmanaged securities considered to be representative of or similar to the portfolio holdings of the Fund or considered to be representative of the stock market in general. The Fund may use the Standard & Poor's 500 Stock Index or the Dow Jones Industrial Average. In addition, the performance of the Fund may be compared to other groups of mutual funds tracked by any widely used independent research firm which ranks mutual funds by overall performance, investment objectives and assets, such as Lipper Analytical Services, Inc. or Morningstar, Inc. The objectives, policies, limitations and expenses of other mutual funds in a group - 9 - may not be the same as those of the Fund. Performance rankings and ratings reported periodically in national financial publications such as Barron's and Fortune also may be used. CUSTODIAN Star Bank, N.A., 425 Walnut Street, Cincinnati, Ohio 45202, is Custodian of the Fund's investments. The Custodian acts as the Fund's depository, safekeeps its portfolio securities, collects all income and other payments with respect thereto, disburses funds at the Fund's request and maintains records in connection with its duties. TRANSFER AGENT American Data Services, Inc., 24 W. Carver Street, Huntington, New York 11743, acts as the Fund's transfer agent and, in such capacity, maintains the records of each shareholder's account, answers shareholders' inquiries concerning their accounts, processes purchases and redemptions of the Fund's shares, acts as dividend and distribution disbursing agent and performs other accounting and shareholder service functions. In addition, American Data Services, Inc. provides the Fund with certain monthly reports, record-keeping and other management-related services. ACCOUNTANTS The firm of McCurdy & Associates, CPA's, 27955 Clemens Road, Westlake, Ohio 44145, has been selected as independent public accountants for the Trust for the fiscal year ending October 31, 1996. McCurdy & Associates performs an annual audit of the Fund's financial statements and provides financial, tax and accounting consulting services as requested. DISTRIBUTOR AmeriPrime Financial Securities, Inc., 1793 Kingswood Drive, Suite 200, Southlake, Texas 76092, is the exclusive agent for distribution of shares of the Fund. The Distributor is obligated to sell the shares of the Fund on a best efforts basis only against purchase orders for the shares. Shares of the Fund are offered to the public on a continuous basis. - 10 - To the Shareholders and Trustees Globalt Growth Fund We have audited the accompanying balance sheet of Globalt Growth Fund (a diversified series of AmeriPrime Funds) as of October 26, 1995. This financial statement is the responsibility of the Company's management. Our responsibility is to express an opinion on this financial statement based on our audit. We conducted our audit in accordance with generally accepted auditing standards. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the balance sheet is free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the balance sheet. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall balance sheet presentation. Our procedures included confirmation of cash held by the custodian as of October 26, 1995, by correspondence with the custodian. We believe that our audit of the balance sheet provides a reasonable basis for our opinion. In our opinion, the balance sheet referred to above presents fairly, in all material respects, the financial position of Globalt Growth Fund as of October 26, 1995, in conformity with generally accepted accounting principles. McCurdy & Associates CPA's, Inc. Westlake, Ohio October 26, 1995 - 11 -
GLOBALT GROWTH FUND STATEMENT OF ASSETS & LIABILITIES OCTOBER 26, 1995 ASSETS: Cash in Bank $25,000 Total Assets $25,000 NET ASSETS $25,000 NET ASSETS CONSIST OF: Capital Paid In $25,000 OUTSTANDING SHARES Unlimited Number of Shares Authorized Without Par Value $2,500 NET ASSET VALUE PER SHARE $10 OFFERING PRICE PER SHARE $10
See Accountant's Audit Report - 12 - GLOBALT GROWTH FUND NOTES TO FINANCIAL STATEMENTS 1. ORGANIZATION Globalt Growth Fund is a diversified series of AmeriPrime Funds an open-end investment company established under the laws of Ohio by an Agreement and Declaration of Trust dated August 8, 1995. The Trust Agreement permits the Trustees to issue an unlimited number of shares of beneficial interest of separate series without par value. The Trust uses an independent transfer agent and dividend paying agent. No transactions other than those relating to organizational matters and the sale of 2,500 shares of Globalt Growth Fund have taken place to date. 2. RELATED PARTY TRANSACTIONS The initial purchase of Registrant's shares was made by AmeriPrime Financial Securities, Inc. (a corporation which may be deemed to be controlled by Kenneth Trumpfheller). As a result of this purchase, the Registrant may be deemed to be under common control with AmeriPrime Financial Securities, Inc. and Kenneth Trumpfheller. The Fund's distribution and administration functions are handled by AmeriPrime Financial Securities, Inc. and AmeriPrime Financial Services, Inc. respectively. These corporations may be deemed to be under the common control of Kenneth Trumpfheller who may be deemed to be a controlling person of each corporation due to his ownership of shares and his positions as an officer and director. Mr. Trumpfheller, because of such affiliation, may receive benefits from the distribution and administration fees. The Fund's investment adviser (the "Adviser") is Globalt, Inc. Under the terms of the management agreement (the "Agreement"), the Adviser manages the Fund's investments subject to approval of the Board of Trustees and pays all of the expenses of the Fund except brokerage, taxes, interest, fees and expenses of non-interested person trustees, and extraordinary expenses. As compensation for its management services and agreement to pay the Fund's expenses, the Fund is obligated to pay the Adviser a fee computed and accrued daily and paid monthly at an annual rate of 1.50% of the average daily net assets of the Fund. Unlike most other mutual funds, the Fund does not pay directly for transfer agency, pricing, custodial, auditing or legal services, nor does it pay directly any general administrative or other operating expenses. The Adviser pays all of the expenses of the Fund except brokerage, taxes, interest, fees and expenses of non-interested person trustees, and extraordinary expenses. - 13 - GLOBALT GROWTH FUND NOTES TO FINANCIAL STATEMENTS (CONT'D) 3. CAPITAL STOCK AND DISTRIBUTION At October 26, 1995 an unlimited number of shares were authorized, and paid-in capital amounted to $25,000. Transactions in capital stock were as follows: Shares sold 2,500 Shares redeemed -0- Net Increase 2,500 Shares Outstanding: Beginning of period -0- End of period 2,500 - 14 -
GLOBALT GROWTH FUND SCHEDULE OF INVESTMENTS April 30, 1996 (Unaudited) Shares Value - -------- -------- COMMON STOCKS 95.32% BUSINESS EQUIPMENT/SERVICES 7.82% 1,300 Air Express Intl $ 36,400 150 Computer Sciences* 11,100 700 General Motors Corp. Cl E 39,462 450 Interpublic Group 21,038 500 Omnicom Group 21,687 650 VeriFone Inc* 27,300 ----------- 156,987 ----------- CAPITAL GOODS 11.63% 300 Caterpillar Inc. 19,200 400 Fluor Corp. 26,450 450 Foster Wheeler Corp. 20,812 500 General Electric Corp. 38,750 850 Kennametal Inc. 32,194 600 Molex Inc. 19,500 600 Owens Corning 24,150 950 Stewart & Stevenson Services Inc. 27,906 400 Thermo Electron Co. 24,650 ----------- 233,612 ----------- CONSUMER DURABLES 1.63% 950 Echlin Inc. 32,656 ----------- The accompanying notes are an integral part of these financial statements. GLOBALT GROWTH FUND SCHEDULE OF INVESTMENTS April 30, 1996 (Unaudited) Shares Value - -------- ------- CONSUMER NON-DURABLES 8.67% 450 Avon Products Inc. $ 39,994 350 Colgate-Palmolive Co. 26,819 450 Duracell International Inc. 20,363 500 Eastman Kodak 38,250 500 Pepsico Inc. 31,750 200 Proctor & Gamble Co. 16,900 ----------- 174,076 ----------- CONSUMER SERVICES 1.48% 650 Coleman Co.* 29,819 ----------- ENERGY 6.58% 250 Amoco Corp. 18,250 1,150 Apache Corp. 33,350 350 Halliburton Co. 20,081 250 Mobil Corp. 28,750 900 Weatherford Enterra Inc.* 31,725 ----------- 132,156 ----------- The accompanying notes are an integral part of these financial statements. GLOBALT GROWTH FUND SCHEDULE OF INVESTMENTS April 30, 1996 (Unaudited) Shares Value - -------- -------- FINANCIAL SERVICES 12.27% 1,050 AFLAC Inc. $ 32,550 850 American Express 41,225 350 American International Group 31,981 400 BankAmerica Corp. 30,300 300 Citicorp 23,625 250 General Re Corp. 35,719 250 Marsh & McLennan Co. 23,500 550 Morgan Stanley Group 27,637 ----------- 246,537 ----------- HEALTH CARE 11.57% 500 Abbott Laboratories 20,312 250 Bristol Meyers Squibb 20,562 600 Guidant Corp. 33,675 256 Johnson & Johnson 23,680 650 Lilly Eli & Co. 38,350 300 Medtronic Inc. 15,937 550 Merck & Co. 33,275 300 Pfizer Inc. 20,662 700 United States Surgical Corp. 25,900 ----------- 232,353 ----------- The accompanying notes are an integral part of these financial statements. GLOBALT GROWTH FUND SCHEDULE OF INVESTMENTS April 30, 1996 (Unaudited) Shares Value - -------- ---------- RAW MATERIALS 7.32% 550 Air Products & Chemicals Inc. $ 31,419 400 Aluminum Company of America 24,950 400 Dupont DeNemours Co. 32,150 1,200 Engelhard Corp. 30,150 800 Morton International Inc. 28,300 ----------- 146,969 ----------- RETAIL 1.91% 800 McDonalds Corp. 38,300 ----------- SHELTER 2.95% 850 International Paper Co. 33,894 350 Kimberly Clark Corp. 25,419 ----------- 59,313 ----------- The accompanying notes are an integral part of these financial statements. GLOBALT GROWTH FUND SCHEDULE OF INVESTMENTS April 30, 1996 (Unaudited) Shares Value - -------- ---------- TECHNOLOGY 16.58% 700 3 Com Corp.* $ 32,288 500 AMP Inc. 22,375 650 Cisco Systems Inc.* 33,719 500 Hewlett Packard Co. 52,938 800 Informix Corp.* 21,100 300 Intel Corp. 20,325 300 International Business Machines 32,250 250 Microsoft Corp.* 28,344 825 Oracle Corp*. 27,844 600 Sun Microsystems* 32,550 200 Xerox Corp. 29,300 ----------- 333,033 ----------- TRANSPORTATION 1.61% 400 Federal Express* 32,300 ----------- The acompanying notes are an integral part of these financial statements. GLOBALT GROWTH FUND SCHEDULE OF INVESTMENTS April 30, 1996 (Unaudited) Shares Value - -------- --------- UTILITIES 3.30% 650 AT & T Corp. $ 39,813 1,000 Enron Oil & Gas 26,500 ----------- 66,313 ----------- TOTAL COMMON STOCKS (cost $1,802,723)................ 1,914,424 TOTAL INVESTMENTS 95.32% 1,914,424 (Cost $1,802,723) Other Assets less liabilities 4.68% 94,084 -------- ----------- TOTAL NET ASSETS 100.00% $2,008,508 ======== =========== *Non-income producing security.
The accompanying notes are an integral part of these financial statements.
GLOBALT GROWTH FUND STATEMENT OF ASSETS AND LIABILITIES April 30, 1996 (Unaudited) ASSETS: Investment in common stock at market value (identified cost--$1,802,723)(Note 1).......................... $ 1,914,424 Short-term investments........................................... 0 Cash............................................................. 104,080 Dividends and interest receivable................................ 1,488 ----------- TOTAL ASSETS.................................. 2,019,992 ----------- LIABILITIES: Payable for securities purchased................................. 9,056 Accrued advisory fee............................................. 1,995 Accrued operating expenses....................................... 433 ----------- TOTAL LIABILITIES............................. 11,484 ----------- NET ASSETS (equivalent to $11.63 per share based on 172,735 shares of common stock outstanding)--(Note 4).......... $ 2,008,508 =========== NET ASSETS CONSIST OF: Paid in capital (Note 4)....................................... $ 1,884,800 Undistributed net investment income/(loss)..................... (896) Accumulated undistributed net realized gain/(loss) from security transactions....................................... 12,903 Net unrealized appreciation/depreciation on investments........ 111,701 ----------- NET ASSETS APRIL 30, 1996 $ 2,008,508 ===========
The accompanying notes are an integral part of these financial statements.
GLOBALT GROWTH FUND STATEMENT OF OPERATIONS For the period from December 1, 1995 (Commencement of Operations) through April 30, 1996 (Unaudited) INVESTMENT INCOME: Dividends...................................................... $ 5,447 Interest....................................................... 0 --------- TOTAL INVESTMENT INCOME..................................... 5,447 --------- OPERATING EXPENSES: Investment advisory fee (Note 3)............................... 5,510 Trustees' fees................................................. 833 --------- TOTAL OPERATING EXPENSES.................................... 6,343 --------- NET INVESTMENT INCOME/(LOSS)................................ (896) --------- NET REALIZED AND UNREALIZED GAIN/(LOSS) ON INVESTMENTS: Net realized gain/(loss) on security transactions................ 12,903 Net change in unrealized appreciation/(depreciation) on investments.............................................. 111,701 --------- NET GAIN/(LOSS) ON INVESTMENTS................................. 124,604 --------- NET INCREASE/(DECREASE) IN NET ASSETS, RESULTING FROM OPERATIONS.............................................. $ 123,708 =========
The accompanying notes are an integral part of these financial statements.
GLOBALT GROWTH FUND STATEMENT OF CHANGES IN NET ASSETS For the period ended April 30, 1996 (Unaudited) INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS: Net investment income/(loss)................................... $ (896) Net realized gain/(loss) from securities transactions.......... 12,903 Net change in unrealized appreciation/(depreciation) of investments during the period............................... 111,701 ---------- NET INCREASE/(DECREASE) IN NET ASSETS FROM OPERATIONS.................................................. 123,708 ---------- DISTRIBUTION TO SHAREHOLDERS: Net investment income......................................... 0 Realized gain................................................. 0 ---------- 0 ---------- FUND SHARE TRANSACTIONS: Shares sold................................................... 1,859,800 Shares issued in reinvestment of dividends.................... 0 Shares redeemed............................................... 0 ---------- TOTAL CAPITAL STOCK 1,859,800 ---------- NET INCREASE/(DECREASE) IN NET ASSETS 1,983,508 ---------- NET ASSETS: Beginning of period........................................... 25,000 ---------- End of period.................................................. $ 2,008,508 ===========
The accompanying notes are an integral part of these financial statements.
GLOBALT GROWTH FUND FINANCIAL HIGHLIGHTS For a share outstanding throughout the period from December 1, 1995 (Commencement of Operations) through April 30, 1996 Net asset value- beginning of period............................. $10.00 -------- Income from investment operations: Net investment income/(loss)..................................... (.01) Net gain/(loss) on investments both realized and unrealized...... 1.64 -------- Total from investment operations................................. 1.63 -------- Less distributions: Dividends from net investment income............................. 0 Dividends from capital gains..................................... 0 -------- Net asset value- end of period................................... $11.63 ======== Total Return**................................................... 39.25% Ratios/Supplemental data: Net assets, end of period (in 000's)............................. 2,009 Ratio of expenses to average net assets**........................ 1.32% Ratio of net investment income to average net assets**........... (.19)% Portfolio turnover rate.......................................... 26.88% Average Commission rate paid..................................... .0934 ** Annualized
The accompanying notes are an integral part of these financial statements. GLOBALT GROWTH FUND NOTES TO FINANCIAL STATEMENTS April 30, 1996 (Unaudited) 1. ORGANIZATION The GLOBALT Growth Fund (the "Fund") was organized as a series of the AmeriPrime Funds, an Ohio business trust (the "Trust"), on October 20, 1995 and commenced operations on December 1, 1995. The Trust is registered under the Investment Company Act of 1940, as amended, as a diversified, open-end management investment company. The Trust Agreement permits the trustees to issue an unlimited number of shares of beneficial interest of separate series without par value. 2. SIGNIFICANT ACCOUNTING POLICIES The following is a summary of significant accounting policies followed by the Fund in the preparation of its financial statements. Securities Valuation - Securities which are traded on any exchange or on the NASDAQ over-the-counter market are valued at the last quoted sale price. Lacking a last sale price, a security is valued at its last bid price except when, in the Adviser's opinion, the last bid price does not accurately reflect the current value of the security. All other securities for which over-the- counter market quotations are readily available are valued at their last bid price. When market quotations are not readily available, when the Adviser determines the last bid price does not accurately reflect the current value or when restricted securities are being valued, such securities are valued as determined in good faith by the Adviser, in conformity with guidelines adopted by and subject to review of the Board of Trustees of the Trust. Fixed income securities generally are valued by using market quotations, but may be valued on the basis of prices furnished by a pricing service when the Adviser believes such prices accurately reflect the fair market values of such securities. A pricing service utilizes electronic data processing techniques based on yield spreads relating to securities with similar characteristics to determine prices for normal instiutional-size trading units of debt securities without regard to sale or bid prices. When prices are not readily available from a pricing service, or when restriced or illiquid securities are being valued, securities are valued at fair value as determined in good faith by the Adviser, subject to review of the Board of Trustees. Short term investments in fixed income securities with maturities of less than 60 days when acquired, or which subsequently are within 60 days of maturity, are valued by using the amortized cost method of valuation, which the Board has determined will represent fair value. GLOBALT GROWTH FUND NOTES TO FINANCIAL STATEMENTS April 30, 1996 (Unaudited) Federal Income Taxes - The Fund intends to qualify each year as a "regulated investment company" under 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 it distributes substantially all of its net investment income and any realized capital gains. Dividends and Distributions - The Fund intends to distribute substantially all of its net investment income as dividends to its shareholders on an annual basis. The Fund intends to distribute its net long term capital gains and its net short term capital gains at least once a year. Other - The Fund follows industry practice and records security transactions on the trade date. The specific identification method is used for determining gains or losses for financial statements and income tax purposes. Dividend income is recorded on the ex-dividend date and interest income is recorded on an accrual basis. NOTE 3. INVESTMENT ADVISORY AGREEMENT The Fund retains GLOBALT , Inc. (the "Adviser") to manage the Fund's investments. The Adviser was orgainzed as a Georgia Corporation in 1990. Angela Allen, President of the Adviser, and Samuel Allen, Chairman of the Adviser, are the controlling shareholders of GLOBALT, Inc. The investment decisions for the Fund are made by a committee of the Adviser, which is primarily responsible for the day to day management of the Fund's portfolio. Under the terms of the management agreement, (the "Agreement"), the Adviser manages the Fund's investments subject to approval of the Board of Trustees and pays all of the expenses of the Fund except brokerage, taxes, interest fees and expenses of non-interested persons, trustees and extraordinary expenses. As compensation for its management services and agreement to pay the Fund's expenses, the Fund is obligated to pay the Adviser a fee computed and accrued daily and paid monthly at an annual rate of 1.17% of the average daily net assets of the Fund. The rate of the advisory fees paid by most investment companies to their investment advisers is lower than the rate of the advisory fees paid by the Fund. In this regard, it should be noted that most investment companies pay their own operating expenses directly, while the Fund's expenses, except those specified above, are paid by the Adviser. For the period from December 1, 1995 through April 30, 1996, the Adviser has received a fee of $5,510 from the Fund. GLOBALT GROWTH FUND NOTES TO FINANCIAL STATEMENTS April 30, 1996 (Unaudited) NOTE 4. CAPITAL SHARE TRANSACTIONS As of April 30, 1996 there was an unlimited number of no par value shares of capital stock authorized for the Fund. Transactions in capital stock were as follows: For the period from December 1, 1995 (Commencement of Operations) through April 30, 1996 Shares Amount --------- ------------ Shares sold 170,235 $1,859,800 Shares issued in reinvestment of dividends 0 0 Shares redeemed 0 0 -------- ---------- Net Increase 170,235 $1,859,800 ========== ======== Total paid in capital $1,884,800 ==========
NOTE 5. INVESTMENTS For the period from December 1, 1995 (commencement of operations) through April 30, 1996, purchases and sales of investment securities, other than short- term investments, aggregated $2,079,888 and $290,011, respectively. The gross unrealized appreciation for all securities totaled $134,524 and the gross unrealized depreciation for all securities totaled $22,823 for a net unrealized appreciation of $111,701. The aggregate cost of securities for federal income tax purposes at April 30, 1996 was $1,802,723. AIT VISION U.S. EQUITY PORTFOLIO STATEMENT OF ADDITIONAL INFORMATION JUNE 28, 1996 This Statement of Additional Information is not a prospectus. It should be read in conjunction with the Prospectus of AIT Vision U.S. Equity Portfolio dated November 6, 1995, and the Supplement to the Prospectus dated June 28, 1996. A copy of the Prospectus can be obtained by writing the Transfer Agent at 24 W. Carver Street, Huntington, New York 11743, or by calling 1-800-507-9922. STATEMENT OF ADDITIONAL INFORMATION TABLE OF CONTENTS PAGE DESCRIPTION OF THE TRUST. . . . . . . . . . . . . . . . . . . . . . . . . 1 ADDITIONAL INFORMATION ABOUT FUND INVESTMENTS AND RISK CONSIDERATIONS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 INVESTMENT LIMITATIONS. . . . . . . . . . . . . . . . . . . . . . . . . . 2 THE INVESTMENT ADVISER. . . . . . . . . . . . . . . . . . . . . . . . . . 5 TRUSTEES AND OFFICERS . . . . . . . . . . . . . . . . . . . . . . . . . . 6 PORTFOLIO TRANSACTIONS AND BROKERAGE. . . . . . . . . . . . . . . . . . . 7 DETERMINATION OF SHARE PRICE. . . . . . . . . . . . . . . . . . . . . . . 8 INVESTMENT PERFORMANCE. . . . . . . . . . . . . . . . . . . . . . . . . . 8 CUSTODIAN . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9 TRANSFER AGENT. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9 ACCOUNTANTS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9 DISTRIBUTOR . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9 DESCRIPTION OF THE TRUST AIT Vision U.S. Equity Portfolio (the "Fund") was organized as a series of AmeriPrime Funds (the "Trust"). The Trust is an open-end investment company established under the laws of Ohio by an Agreement and Declaration of Trust dated August 8, 1995 (the "Trust Agreement"). The Trust Agreement permits the Trustees to issue an unlimited number of shares of beneficial interest of separate series without par value. The Fund is one of a series of funds currently authorized by the Trustees. Each share of a series represents an equal proportionate interest in the assets and liabilities belonging to that series with each other share of that series and is entitled to such dividends and distributions out of income belonging to the series as are declared by the Trustees. The shares do not have cumulative voting rights or any preemptive or conversion rights, and the Trustees have the authority from time to time to divide or combine the shares of any series into a greater or lesser number of shares of that series so long as the proportionate beneficial interest in the assets belonging to that series and the rights of shares of any other series are in no way affected. In case of any liquidation of a series, the holders of shares of the series being liquidated will be entitled to receive as a class a distribution out of the assets, net of the liabilities, belonging to that series. Expenses attributable to any series are borne by that series. Any general expenses of the Trust not readily identifiable as belonging to a particular series are allocated by or under the direction of the Trustees in such manner as the Trustees determine to be fair and equitable. No shareholder is liable to further calls or to assessment by the Trust without his or her express consent. As of May 31, 1996, the following persons may be deemed to beneficially own five percent (5%) or more of the Fund: AmeriPrime Financial Securities, Inc., 1793 Kingswood Drive, Suite 200, Southlake, Texas - 5.02%; Blanche W. Dupree Trust, 719 Central Park Blvd., Port Orange, Florida - 9.85%; LBS Capital Management Resources Trust Company, 311 Park Place Blvd., Clearwater, Florida - - 66.71%. As of May 31, 1996, LBS Capital Management Resources Trust Company may be deemed to control the Fund as a result of its beneficial ownership of shares of the Fund. As of May 31, 1996, the officers and trustees as a group may be deemed to beneficially own 5.02% of the Fund. For information concerning the purchase and redemption of shares of the Fund, see "How to Invest in the Fund" and "How to Redeem Shares" in the Fund's Prospectus. For a description of the methods used to determine the share price and value of the Fund's assets, see "Share Price Calculation" in the Fund's Prospectus. ADDITIONAL INFORMATION ABOUT FUND INVESTMENTS AND RISK CONSIDERATIONS This section contains a more detailed discussion of some of the investments the Fund may make and some of the techniques it may use, as described in the Prospectus (see "Investment Objectives and Strategies" and "Investment Policies and Techniques and Risk Considerations"). American Depository Receipts. American Depository Receipts are dollar-denominated receipts that are generally issued in registered form by domestic banks, and represent the deposit with the bank of a security of a foreign issuer. To the extent that the Fund invests in foreign securities, such investments may be subject to special risks. For example, there may be less information publicly available about a foreign company than about a U.S. company, and foreign - 1 - companies are not generally subject to accounting, auditing and financial reporting standards and practices comparable to those in the U.S. Other risks associated with investments in foreign securities include changes in restrictions on foreign currency transactions and rates of exchanges, changes in the administrations or economic and monetary policies of foreign governments, the imposition of exchange control regulations, the possibility of expropriation decrees and other adverse foreign governmental action, the imposition of foreign taxes, less liquid markets, less government supervision of exchanges, brokers and issuers, difficulty in enforcing contractual obligations, delays in settlement of securities transactions and greater price volatility. In addition, investing in foreign securities will generally result in higher commissions than investing in similar domestic securities. Convertible Debentures. The Adviser considers convertible debentures rated A or higher by Standard & Poor's Corporation ("S&P") or by Moody's Investors Services, Inc. ("Moody's") to be of investment grade quality. Investment grade securities generally have adequate to strong protection of principal and interest payments. Convertible debentures rated A possess many favorable investment attributes and are considered to be upper-medium grade obligations. Securities rated A may be more susceptible to the adverse effects of changes in circumstances and economic conditions (changes that increase long term risk) than higher rated securities. Short Sales. The Fund may sell a security short in anticipation of a decline in the market value of the security. When the Fund engages in a short sale, it sells a security which it does not own. To complete the transaction, the Fund must borrow the security in order to deliver it to the buyer. The Fund must replace the borrowed security by purchasing it at the market price at the time of replacement, which may be more or less than the price at which the Fund sold the security. The Fund will incur a loss as a result of the short sale if the price of the security increases between the date of the short sale and the date on which the Fund replaces the borrowed security. The Fund will realize a profit if the security declines in price between those dates. INVESTMENT LIMITATIONS Fundamental. The investment limitations described below have been adopted by the Trust with respect to the Fund and are fundamental ("Fundamental"), i.e., they may not be changed without the affirmative vote of a majority of the outstanding shares of the Fund. As used in the Prospectus and this Statement of Additional Information, the term "majority" of the outstanding shares of the Fund means the lesser of (1) 67% or more of the outstanding shares of the Fund present at a meeting, if the holders of more than 50% of the outstanding shares of the Fund are present or represented at such meeting; or (2) more than 50% of the outstanding shares of the Fund. Other investment practices which may be changed by the Board of Trustees without the approval of shareholders to the extent permitted by applicable law, regulation or regulatory policy are considered non-fundamental ("Non-Fundamental"). 1. Borrowing Money. The Fund will not borrow money, except (a) from a bank, provided that immediately after such borrowing there is an asset coverage of 300% for all borrowings of the Fund; or (b) from a bank or other persons for temporary purposes only, provided that such temporary borrowings are in an amount not exceeding 5% of the Fund's total assets at the time when the borrowing is made. This limitation does not preclude the Fund from entering into reverse repurchase transactions, provided that the Fund has an asset coverage of 300% for all - 2 - borrowings and repurchase commitments of the Fund pursuant to reverse repurchase transactions. 2. Senior Securities. The Fund will not issue senior securities. This limitation is not applicable to activities that may be deemed to involve the issuance or sale of a senior security by the Fund, provided that the Fund's engagement in such activities is (a) consistent with or permitted by the Investment Company Act of 1940, as amended, the rules and regulations promulgated thereunder or interpretations of the Securities and Exchange Commission or its staff and (b) as described in the Prospectus and this Statement of Additional Information. 3. Underwriting. The Fund will not act as underwriter of securities issued by other persons. This limitation is not applicable to the extent that, in connection with the disposition of portfolio securities (including restricted securities), the Fund may be deemed an underwriter under certain federal securities laws. 4. Real Estate. The Fund will not purchase or sell real estate. This limitation is not applicable to investments in marketable securities which are secured by or represent interests in real estate. This limitation does not preclude the Fund from investing in mortgage-related securities or investing in companies engaged in the real estate business or that have a significant portion of their assets in real estate (including real estate investment trusts). 5. Commodities. The Fund will not purchase or sell commodities unless acquired as a result of ownership of securities or other investments. This limitation does not preclude the Fund from purchasing or selling options or futures contracts, from investing in securities or other instruments backed by commodities or from investing in companies which are engaged in a commodities business or have a significant portion of their assets in commodities. 6. Loans. The Fund will not make loans to other persons, except (a) by loaning portfolio securities, (b) by engaging in repurchase agreements, or (c) by purchasing nonpublicly offered debt securities. For purposes of this limitation, the term "loans" shall not include the purchase of a portion of an issue of publicly distributed bonds, debentures or other securities. 7. Concentration. The Fund will not invest 25% or more of its total assets in a particular industry. This limitation is not applicable to investments in obligations issued or guaranteed by the U.S. government, its agencies and instrumentalities or repurchase agreements with respect thereto. With respect to the percentages adopted by the Trust as maximum limitations on its investment policies and limitations, an excess above the fixed percentage will not be a violation of the policy or limitation unless the excess results immediately and directly from the acquisition of any security or the action taken. This paragraph does not apply to the borrowing policy set forth in paragraph 1 above. Notwithstanding any of the foregoing limitations, any investment company, whether organized as a trust, association or corporation, or a personal holding company, may be merged or consolidated with or acquired by the Trust, provided that if such merger, consolidation or acquisition results in an investment in the securities of any issuer prohibited by said paragraphs, the Trust shall, within ninety days after the consummation of such merger, consolidation or acquisition, dispose of all of the securities of such issuer so acquired or such portion thereof as shall bring the total investment therein within the limitations imposed by said paragraphs above as of the date of consummation. - 3 - Non-Fundamental. The following limitations have been adopted by the Trust with respect to the Fund and are Non-Fundamental (see "Investment Restrictions" above). i. Pledging. The Fund will not mortgage, pledge, hypothecate or in any manner transfer, as security for indebtedness, any assets of the Fund except as may be necessary in connection with borrowings described in limitation (1) above. Margin deposits, security interests, liens and collateral arrangements with respect to transactions involving options, futures contracts, short sales and other permitted investments and techniques are not deemed to be a mortgage, pledge or hypothecation of assets for purposes of this limitation. ii. Borrowing. The Fund will not purchase any security while borrowings (including reverse repurchase agreements) representing more than 5% of its total assets are outstanding. The Fund will not enter into reverse repurchase agreements. iii. Margin Purchases. The Fund will not purchase securities or evidences of interest thereon on "margin." This limitation is not applicable to short term credit obtained by the Fund for the clearance of purchases and sales or redemption of securities, or to arrangements with respect to transactions involving options, futures contracts, short sales and other permitted investments and techniques. iv. Short Sales. The Fund will not effect short sales of securities unless it owns or has the right to obtain securities equivalent in kind and amount to the securities sold short. v. Options. The Fund will not purchase or sell puts, calls, options or straddles, except as described in the Prospectus and this Statement of Additional Information. vi. Illiquid Investments. The Fund will not invest in securities for which there are legal or contractual restrictions on resale or other illiquid securities. Other Restrictions. To comply with the current state regulations, the Fund presently intends to observe the following restrictions, which may be changed by the Board of Trustees without shareholder approval. Arizona. The Fund presently has no investment policy that restricts the Fund's purchase of securities issued by companies that have been in operation less than three years. California. As long as the rules promulgated under the California Corporate Securities Law include restrictions on options transactions by an investment company, the Fund will adhere to such restrictions as interpreted by the staff of the California Department of Corporations. The Fund will limit writing of puts such that the aggregate value of the obligations underlying such puts will not exceed 50% of the Fund's net assets, and the Fund will limit the purchase of puts and calls such that the premiums paid therefor shall not exceed 20% of the net assets of the Fund. - 4 - Texas. The Fund may not invest in oil, gas or mineral leases. The Fund may not purchase or sell real property including limited partnership interests, but excluding readily marketable interests in real estate investment trusts or readily marketable securities of companies which invest in real estate. The Fund will not lend portfolio securities. In addition, shares of the Fund sold in Texas will be exchanged for a money market fund sponsored by AmeriPrime Funds only if such money market fund is registered in Texas. THE INVESTMENT ADVISER The Fund's investment adviser is LBS Capital Management, Inc., 311 Park Place Blvd., Suite 330, Clearwater, Florida 34619. Dean S. Barr and Walter J. Loick may each be deemed to be a controlling person of the Adviser due to their ownership of its shares and their respective positions as chief investment officer and director of the Adviser. Under the terms of the management agreement (the "Agreement"), the Adviser manages the Fund's investments subject to approval of the Board of Trustees and pays all of the expenses of the Fund except brokerage, taxes, interest, fees and expenses of the non-interested person trustees and extraordinary expenses. As compensation for its management services and agreement to pay the Fund's expenses, the Fund is obligated to pay the Adviser a fee computed and accrued daily and paid monthly at an annual rate of 1.47% of the average daily net assets of the Fund. The Adviser may waive all or part of its fee, at any time, and at its sole discretion, but such action shall not obligate the Adviser to waive any fees in the future. The Adviser retains the right to use the names "AIT" and "AIT Vision" in connection with another investment company or business enterprise with which the Adviser is or may become associated. The Trust's right to use the name "AIT" and "AIT Vision" automatically ceases ninety days after termination of the Agreement and may be withdrawn by the Adviser on ninety days written notice. The Adviser may make payments to banks or other financial institutions that provide shareholder services and administer shareholder accounts. The Glass-Steagall Act prohibits banks from engaging in the business of underwriting, selling or distributing securities. Although the scope of this prohibition under the Glass-Steagall Act has not been clearly defined by the courts or appropriate regulatory agencies, management of the Fund believes that the Glass-Steagall Act should not preclude a bank from providing such services. However, state securities laws on this issue may differ from the interpretations of federal law expressed herein and banks and financial institutions may be required to register as dealers pursuant to state law. If a bank were prohibited from continuing to perform all or a part of such services, management of the Fund believes that there would be no material impact on the Fund or its shareholders. Banks may charge their customers fees for offering these services to the extent permitted by applicable regulatory authorities, and the overall return to those shareholders availing themselves of the bank services will be lower than to those shareholders who do not. The Fund may from time to time purchase securities issued by banks which provide such services; however, in selecting investments for the Fund, no preference will be shown for such securities. - 5 - TRUSTEES AND OFFICERS The names of the Trustees and executive officers of the Trust are shown below. Each Trustee who is an "interested person" of the Trust, a defined in the Investment Company Act of 1940, is indicated by an asterisk. Name, Age and Address Position Principal Occupations During Past 5 Years * Kenneth D. Trumpfheller President and Trustee President, Treasurer and Secretary of AmeriPrime Financial Age: 37 Services, Inc., the Fund's administrator, and AmeriPrime Suite 200 Financial Securities, Inc., the Fund's distributor. 1793 Kingswood Drive Prior to December, 1994, a senior client executive with SEI Southlake, Texas 76092 Financial Services. Kelli D. Shomaker, C.P.A. Secretary, Treasurer Manager of Compliance of AmeriPrime Financial Services, 1793 Kingswood Drive Inc.; Vice President, Chief Accounting Officer, Treasurer Suite 200 and Controller of United Services Advisors, Inc. and United Age: 33 Services Insurance Funds from 1994 to 1995; Vice President, Southlake, Texas 76092 Chief Accounting Officer, Treasurer, and Controller of Accolade Funds and Pauze/Swanson United Services Funds from 1993 to 1995; Controller from 1987 to 1995 and Vice President, Chief Accounting Officer and Treasurer from 1990 to 1995 of United Services Funds; Director of Security Trust & Financial Company from 1993 to 1995. Steve L. Cobb Trustee President of Clare Energy, Inc., oil and gas exploration Age: 37 company; International Marketing Manager of Carbo Ceramics 140 Mockingbird Lane Inc., oil field manufacturing/supply company. Coppell, Texas 76019 Gary E. Hippenstiel Trustee President and Director of Heritage Trust Company; Vice Age: 48 President and Chief Investment Officer of Legacy Trust 600 Jefferson Street Company; Vice President and Manager of Investments of Houston, Texas 70002 Kanaly Trust Company from 1988 to 1992.
The compensation paid to the Trustees of the Trust is set forth in the following table: Pension or Aggregate Retirement Estimated Annual Total Compensation Compensation Accrued As Part Benefits Upon from Trust (the Trust is Name from Trust (1) of Fund Expenses Retirement not in a Fund Complex) (1) Kenneth D. Trumpfheller 0 0 0 0 Steve L. Cobb $4,000 0 0 $4,000 Gary E. Hippenstiel $4,000 0 0 $4,000 1 Trustee fees are Trust expenses and each series of the Trust pays a portion of the Trustee fees. The compensation is estimated for the first full year of the Trust ending October 31, 1996.
- 6 - PORTFOLIO TRANSACTIONS AND BROKERAGE Subject to policies established by the Board of Trustees of the Trust, the Adviser is responsible for the Fund's portfolio decisions and the placing of the Fund's portfolio transactions. In placing portfolio transactions, the Adviser seeks the best qualitative execution for the Fund, taking into account such factors as price (including the applicable brokerage commission or dealer spread), the execution capability, financial responsibility and responsiveness of the broker or dealer and the brokerage and research services provided by the broker or dealer. The Adviser generally seeks favorable prices and commission rates that are reasonable in relation to the benefits received. The Adviser is specifically authorized to select brokers or dealers who also provide brokerage and research services to the Fund and/or the other accounts over which the Adviser exercises investment discretion and to pay such brokers or dealers a commission in excess of the commission another broker or dealer would charge if the Adviser determines in good faith that the commission is reasonable in relation to the value of the brokerage and research services provided. The determination may be viewed in terms of a particular transaction or the Adviser's overall responsibilities with respect to the Trust and to other accounts over which it exercises investment discretion. Research services include supplemental research, securities and economic analyses, statistical services and information with respect to the availability of securities or purchasers or sellers of securities and analyses of reports concerning performance of accounts. The research services and other information furnished by brokers through whom the Fund effects securities transactions may also be used by the Adviser in servicing all of its accounts. Similarly, research and information provided by brokers or dealers serving other clients may be useful to the Adviser in connection with its services to the Fund. Although research services and other information are useful to the Fund and the Adviser, it is not possible to place a dollar value on the research and other information received. It is the opinion of the Board of Trustees and the Adviser that the review and study of the research and other information will not reduce the overall cost to the Adviser of performing its duties to the Fund under the Agreement. Over-the-counter transactions will be placed either directly with principal market makers or with broker-dealers, if the same or a better price, including commissions and executions, is available. Fixed income securities are normally purchased directly from the issuer, an underwriter or a market maker. Purchases include a concession paid by the issuer to the underwriter and the purchase price paid to a market maker may include the spread between the bid and asked prices. To the extent that the Trust and another of the Adviser's clients seek to acquire the same security at about the same time, the Trust may not be able to acquire as large a position in such security as it desires or it may have to pay a higher price for the security. Similarly, the Trust may not be able to obtain as large an execution of an order to sell or as high a price for any particular portfolio security if the other client desires to sell the same portfolio security at the same time. On the other hand, if the same securities are bought or sold at the same time by more than one client, the resulting participation in volume transactions could produce better executions for the Trust. In the event that more than one client wants to purchase or sell the same security on a given date, the purchases and sales will normally be made by random client selection. - 7 - DETERMINATION OF SHARE PRICE The price (net asset value) of the shares of the Fund is determined as of 4:00 p.m., Eastern time on each day the Trust 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 Trust is open for business on every day except Saturdays, Sundays and the following holidays: New Year's Day, President's Day, Good Friday, Memorial Day, Independence Day, Labor Day, Thanksgiving and Christmas. For a description of the methods used to determine the net asset value (share price), see "Share Price Calculation" in the Prospectus. INVESTMENT PERFORMANCE "Average annual total return," as defined by the Securities and Exchange Commission, is computed by finding the average annual compounded rates of return (over the one and five year periods and the period from initial public offering through the end of the Fund's most recent fiscal year) that would equate the initial amount invested to the ending redeemable value, according to the following formula: P(1+T)n=ERV Where: P = a hypothetical $1,000 initial investment T = average annual total return n = number of years ERV = ending redeemable value at the end of the applicable period of the hypothetical $1,000 investment made at the beginning of the applicable period. The computation assumes that all dividends and distributions are reinvested at the net asset value on the reinvestment dates and that a complete redemption occurs at the end of the applicable period. The Fund's investment performance will vary depending upon market conditions, the composition of the Fund's portfolio and operating expenses of the Fund. These factors and possible differences in the methods and time periods used in calculating non-standardized investment performance should be considered when comparing the Fund's performance to those of other investment companies or investment vehicles. The risks associated with the Fund's investment objective, policies and techniques should also be considered. At any time in the future, investment performance may be higher or lower than past performance, and there can be no assurance that any performance will continue. From time to time, in advertisements, sales literature and information furnished to present or prospective shareholders, the performance of the Fund may be compared to indices of broad groups of unmanaged securities considered to be representative of or similar to the portfolio holdings of the Fund or considered to be representative of the stock market in general. The Fund may use the Standard & Poor's 500 Stock Index or the Dow Jones Industrial Average. In addition, the performance of the Fund may be compared to other groups of mutual funds tracked by any widely used independent research firm which ranks mutual funds by overall performance, investment objectives and assets, such as Lipper Analytical Services, Inc. or Morningstar, Inc. The objectives, policies, limitations and expenses of other mutual funds in a group - 8 - may not be the same as those of the Fund. Performance rankings and ratings reported periodically in national financial publications such as Barron's and Fortune also may be used. CUSTODIAN Star Bank, N.A., 425 Walnut Street, Cincinnati, Ohio 45202, is Custodian of the Fund's investments. The Custodian acts as the Fund's depository, safekeeps its portfolio securities, collects all income and other payments with respect thereto, disburses funds at the Fund's request and maintains records in connection with its duties. TRANSFER AGENT American Data Services, Inc., 24 W. Carver Street, Huntington, New York 11743, acts as the Fund's transfer agent and, in such capacity, maintains the records of each shareholder's account, answers shareholders' inquiries concerning their accounts, processes purchases and redemptions of the Fund's shares, acts as dividend and distribution disbursing agent and performs other accounting and shareholder service functions. In addition, American Data Services, Inc. provides the Fund with certain monthly reports, record-keeping and other management-related services. ACCOUNTANTS The firm of McCurdy & Associates, CPA's, 27955 Clemens Road, Westlake, Ohio 44145, has been selected as independent public accountants for the Trust for the fiscal year ending October 31, 1996. McCurdy & Associates performs an annual audit of the Fund's financial statements and provides financial, tax and accounting consulting services as requested. DISTRIBUTOR AmeriPrime Financial Securities, Inc., 1793 Kingswood Drive, Suite 200, Southlake, Texas 76092, is the exclusive agent for distribution of shares of the Fund. The Distributor is obligated to sell the shares of the Fund on a best efforts basis only against purchase orders for the shares. Shares of the Fund are offered to the public on a continuous basis. - 9 - To the Shareholders and Trustees AIT Vision U.S. Equity Portfolio We have audited the accompanying balance sheet of AIT Vision U.S. Equity Portfolio (a diversified series of AmeriPrime Funds) as of October 26, 1995. This financial statement is the responsibility of the Company's management. Our responsibility is to express an opinion on this financial statement based on our audit. We conducted our audit in accordance with generally accepted auditing standards. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the balance sheet is free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the balance sheet. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall balance sheet presentation. Our procedures included confirmation of cash held by the custodian as of October 26, 1995, by correspondence with the custodian. We believe that our audit of the balance sheet provides a reasonable basis for our opinion. In our opinion, the balance sheet referred to above presents fairly, in all material respects, the financial position of AIT Vision U.S. Equity Portfolio as of October 26, 1995, in conformity with generally accepted accounting principles. McCurdy & Associates CPA's, Inc. Westlake, Ohio October 26, 1995 - 10 -
AIT VISION U.S. EQUITY PORTFOLIO STATEMENT OF ASSETS & LIABILITIES OCTOBER 26, 1995 ASSETS: Cash in Bank $25,000 Total Assets $25,000 NET ASSETS $25,000 NET ASSETS CONSIST OF: Capital Paid In $25,000 OUTSTANDING SHARES Unlimited Number of Shares Authorized Without Par Value $2,500 NET ASSET VALUE PER SHARE $10 OFFERING PRICE PER SHARE $10
See Accountant's Audit Report - 11 - AIT VISION U.S. EQUITY PORTFOLIO NOTES TO FINANCIAL STATEMENTS 1. ORGANIZATION AIT Vision U.S. Equity Portfolio is a diversified series of AmeriPrime Funds an open-end investment company established under the laws of Ohio by an Agreement and Declaration of Trust dated August 8, 1995. The Trust Agreement permits the Trustees to issue an unlimited number of shares of beneficial interest of separate series without par value. The Trust uses an independent transfer agent and dividend paying agent. No transactions other than those relating to organizational matters and the sale of 2,500 shares of AIT Vision U.S. Equity Portfolio have taken place to date. 2. RELATED PARTY TRANSACTIONS The initial purchase of Registrant's shares was made by AmeriPrime Financial Securities, Inc. (a corporation which may be deemed to be controlled by Kenneth Trumpfheller). As a result of this purchase, the Registrant may be deemed to be under common control with AmeriPrime Financial Securities, Inc. and Kenneth Trumpfheller. The Fund's distribution and administration functions are handled by AmeriPrime Financial Securities, Inc. and AmeriPrime Financial Services, Inc. respectively. These corporations may be deemed to be under the common control of Kenneth Trumpfheller who may be deemed to be a controlling person of each corporation due to his ownership of shares and his positions as an officer and director. Mr. Trumpfheller, because of such affiliation, may receive benefits from the distribution and administration fees. The Fund's investment adviser (the "Adviser") is LBS Capital Management, Inc. Under the terms of the management agreement (the "Agreement"), the Adviser manages the Fund's investments subject to approval of the Board of Trustees and pays all of the expenses of the Fund except brokerage, taxes, interest, fees and expenses of non-interested person trustees, and extraordinary expenses. As compensation for its management services and agreement to pay the Fund's expenses, the Fund is obligated to pay the Adviser a fee computed and accrued daily and paid monthly at an annual rate of 1.50% of the average daily net assets of the Fund. Unlike most other mutual funds, the Fund does not pay directly for transfer agency, pricing, custodial, auditing or legal services, nor does it pay directly any general administrative or other operating expenses. The Adviser pays all of the expenses of the Fund except brokerage, taxes, interest, fees and expenses of non-interested person trustees, and extraordinary expenses. - 12 - AIT VISION U.S. EQUITY PORTFOLIO NOTES TO FINANCIAL STATEMENTS (CONT'D) 3. CAPITAL STOCK AND DISTRIBUTION At October 26, 1995 an unlimited number of shares were authorized, and paid-in capital amounted to $25,000. Transactions in capital stock were as follows: Shares sold 2,500 Shares redeemed -0- Net Increase 2,500 Shares Outstanding: Beginning of period -0- End of period 2,500 - 13 -
AIT VISION U.S. EQUITY PORTFOLIO SCHEDULE OF INVESTMENTS April 30, 1996 (Unaudited) Shares Value - -------- --------- COMMON STOCKS 95.94% BROADCASTING 2.71% 200 Clear Channel Communication* $ 13,550 ----------- CABLE TELEVISION 1.14% 300 Telecommunications Inc. 5,737 ----------- CASINO/GAMBLING 3.14% 300 Mirage Resorts Inc.* 15,712 ----------- CLOTHING/SHOE/ACCESS CHAINS 5.80% 400 Gap Inc. 12,050 100 Nordstrom Inc. 5,087 400 TJX Cos Inc. 11,800 ----------- 28,937 ----------- COMPUTER SOFTWARE 8.39% 300 Continuum Inc.* 17,100 100 Microsoft Corp.* 11,338 400 Oracle Corp.* 13,500 ----------- 41,938 ----------- The accompanying notes are an integral part of these financial statements. AIT VISION U.S. EQUITY PORTFOLIO SCHEDULE OF INVESTMENTS April 30, 1996 (Unaudited) Shares Value - -------- ------- COMPUTER/VIDEO CHAINS 3.57% 400 Circuit City Stores Inc. $ 12,700 100 Tandy Corp. 5,187 ----------- 17,887 ----------- CONSTRUCTION/AGRICULTURAL EQUIPMENT/TRUCKS 3.27% 300 JLG Industries Inc. 16,350 ----------- CONTRACT DRILLING 3.43% 700 Reading & Bates Corp. 17,150 ----------- DIVERSIFIED COMMERCIAL SERVICES 2.71% 200 Pay Chex Inc. 13,550 ----------- DIVERSIFIED ELECTRONICS PRODUCTS 1.71% 200 SCI SYS. INC. 8,575 ----------- DIVERSIFIED MANUFACTURE 5.27% 300 Danaher Corp. 11,813 200 Dresser Industries Inc. 6,375 400 Zurn Industries Inc. 8,150 ----------- 26,338 ----------- ELECTRONIC DATA PROCESSING 4.23% 200 Hewlett Packard Co. 21,175 ----------- The accompanying notes are an integral part of these financial statements. AIT VISION U.S. EQUITY PORTFOLIO SCHEDULE OF INVESTMENTS April 30, 1996 (Unaudited) Shares Value - -------- ------- ENGINEERING & CONSTRUCTION 2.22% 400 Jacobs Engineering Group Inc. $ 11,100 ----------- FINANCE COMPANIES 1.46% 100 Student Loan Marketing Assn. 7,325 ----------- FINANCIAL PUBLISHING/SERVICES 2.45% 500 Equifax Inc. 12,250 ----------- FOREST PRODUCTS 3.11% 200 Georgia Pacific Corp. 15,550 ----------- HEALTH INDUSTRY SERVICES 2.37% 100 HBO & Co. 11,875 ----------- INDUSTRIAL MACHINERY/COMPONENTS 0.77% 100 Ingersoll Rand Co. 3,875 ----------- INDUSTRIAL SPECIALTIES 5.72% 600 BMC Industries Inc. 16,050 300 Millipore Corp. 12,562 ----------- 28,612 ----------- The accompanying notes are an integral part of these financial statements. AIT VISION U.S. EQUITY PORTFOLIO SCHEDULE OF INVESTMENTS April 30, 1996 (Unaudited) Shares Value - -------- -------- INVESTMENT BANKERS/BROKERS/SERVICES 1.21% 100 Merrill Lynch & Co. Inc. $ 6,038 ----------- INVESTMENT MANAGERS 2.29% 200 Franklin Res. Inc. 11,450 ----------- MAJOR BANKS 5.92% 200 BankAmerica Corp. 15,150 235 First Union Corp. 14,453 ----------- 29,603 MAJOR PHARMACEUTICALS 3.70% 200 Johnson & Johnson 18,500 ----------- NATURAL GAS DISTRIBUTIONS 0.93% 100 Consolidated Natural Gas Co. 4,675 ----------- OIL REFINING/MARKETING 1.15% 200 Valero Energy Corp. 5,775 ----------- OILFIELD SERVICES/EQUIPMENT 3.44% 300 Halliburton Co. 17,213 ----------- OTHER SPECIALITY CHAINS 1.33% 200 Pep Boys Manny, Moe & Jack 6,675 ----------- The accompanying notes are an integral part of these financial statements. AIT VISION U.S. EQUITY PORTFOLIO SCHEDULE OF INVESTMENTS April 30, 1996 (Unaudited) Shares Value - -------- --------- PACKAGED FOODS 1.60% 200 Dole Food Inc. $ 8,000 ----------- PACKAGED GOODS/COSMETICS 3.38% 200 Procter & Gamble Co. 16,900 ----------- PAINTS/COATINGS 2.02% 200 PPG Industries Inc. 10,125 ----------- PRECIOUS METALS 2.10% 800 Echo Bay Mines Ltd. 10,500 ----------- SAVINGS & LOANS ASSOCIATIONS 2.22% 400 Washington Mutual Inc. 11,100 ----------- SPECIALTY STEELS 1.18% 300 Allegheny Ludium Corp. 5,925 ----------- TOTAL COMMON STOCKS (COST $430,482) 479,965 ----------- TOTAL INVESTMENTS (Cost $430,482) 95.94% 479,965 Other Assets less Liabilities 4.06% 20,310 ------- --------- TOTAL NET ASSETS 100.00% $500,275 ======= ========= *Non-Income producing securities.
The accompanying notes are an integral part of these financial statements.
AIT VISION U.S. EQUITY PORTFOLIO STATEMENT OF ASSETS AND LIABILITIES April 30, 1996 (Unaudited) ASSETS: Investment in common stock at market value (identified cost--$430,482)(Note 1)............................ $479,965 Cash............................................................. 15,257 Receivable for securities sold................................... 5,661 Dividends and interest receivable................................ 235 -------- TOTAL ASSETS.................................. 501,118 -------- LIABILITIES: Accrued advisory fee............................................. 563 Dividends payable................................................ 0 Accrued operating expenses....................................... 280 -------- TOTAL LIABILITIES............................. 843 -------- NET ASSETS (equivalent to $11.10 per share based on 45,068 shares of common stock outstanding)--(Note 4)...... $500,275 ======== NET ASSETS CONSIST OF: Paid in capital (Note 4)....................................... $458,586 Undistributed net investment income/(loss)..................... (1,267) Accumulated undistributed net realized gain/(loss) from security transactions................................................ (6,527) Net unrealized appreciation/(depreciation) of investments...... 49,483 -------- NET ASSETS APRIL 30, 1996........................................ $500,275 ========
The accompanying notes are an integral part of these financial statements.
AIT VISION U.S. EQUITY PORTFOLIO STATEMENT OF OPERATIONS For the period from November 6, 1995 (Commencement of Operations) through April 30, 1996 (Unaudited) INVESTMENT INCOME: Dividends...................................................... $1,028 Interest....................................................... 0 -------- TOTAL INVESTMENT INCOME..................................... 1,028 -------- OPERATING EXPENSES: Investment advisory fee (Note 3)............................... 1,615 Trustees' fees................................................. 680 TOTAL OPERATING EXPENSES.................................... 2,295 NET INVESTMENT INCOME/(LOSS)................................ (1,267) NET REALIZED AND UNREALIZED GAINS/(LOSSES) ON INVESTMENTS: Net realized gain/(loss) on security transactions................ (6,527) Net change in unrealized appreciation/(depreciation) on investments.................................................. 49,483 NET GAIN/(LOSS) ON INVESTMENTS................................... 42,956 NET INCREASE/(DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS...................................... $41,689
The accompanying notes are an integral part of these financial statements.
AIT VISION U.S. EQUITY PORTFOLIO STATEMENT OF CHANGES IN NET ASSETS For the period ended April 30, 1996 (Unaudited) INCREASE/(DECREASE) IN NET ASSETS FROM OPERATIONS: Net investment income/(loss)................................... $(1,267) Net realized gain/(loss) from securities transactions.......... (6,527) Net change in unrealized appreciation/(depreciation) of investments during the period............................................. 49,483 --------- NET INCREASE/(DECREASE) IN NET ASSETS FROM OPERATIONS.................................................. 41,689 --------- DISTRIBUTION TO SHAREHOLDERS: Net investment income......................................... 0 Realized gain................................................. 0 --------- 0 --------- FUND SHARE TRANSACTIONS: Shares sold.................................................... 434,192 Shares issued in reinvestment of dividends..................... 0 Shares redeemed................................................ (606) --------- TOTAL CAPITAL STOCK............................................. 433,586 --------- NET INCREASE/(DECREASE) IN NET ASSETS............................ 475,275 --------- NET ASSETS: Beginning of period........................................... 25,000 --------- End of period.................................................. $500,275 =========
The accompanying notes are an integral part of these financial statements.
AIT VISION U.S. EQUITY PORTFOLIO FINANCIAL HIGHLIGHTS For a share outstanding throughout the period from November 6, 1995 (Commencement of Operations) through April 30, 1996 (Unaudited) Net asset value- beginning of period........................... $10.00 -------- Income from investment operations: Net investment income/(loss)................................... (.04) Net gain/(loss) on investments both realized and unrealized.... 1.14 -------- Total from investment operations............................... 1.10 -------- Less distributions: Dividends from net investment income........................... 0 Dividends from capital gains................................... 0 -------- Net asset value - end of period................................. $11.10 ======== Total Return**................................................. 32.47% Ratio/supplemental data: Net assets, end of period (in 000's)........................... 500 Ratio of expenses to average net assets**...................... 2.07% Ratio of net investment income to average net assets**......... (1.15)% Portfolio turnover rate........................................ 81.56% Average Commission rate paid................................... .0471 ** Annualized
The accompanying notes are an integral part of these financial statements. AIT VISION U.S. EQUITY PORTFOLIO Notes to Financial Statements April 30, 1996 (Unaudited) 1. ORGANIZATION The AIT Vision U.S. Equity Portfolio (the "Fund") was organized as a series of the AmeriPrime Funds, an Ohio business trust (the "Trust"), on August 8, 1995, and commenced operations on November 6, 1995. The Trust is registered under the Investment Company Act of 1940, as amended, as a diversified series, open end management investment company. The Trust Agreement permits the Trustees to issue an unlimited number of shares of beneficial interest of separate series without par value. 2. SIGNIFICANT ACCOUNTING POLICIES The following is a summary of significant accounting policies followed by the Fund in the preparation of its financial statements. Securities Valuations - Securities which are traded on any exchange or on the NASDAQ over-the-counter market are valued at the last quoted sale price. Lacking a last sale price, a security is valued at its last bid price except when, in the Adviser's opinion the last bid price does not accurately reflect the current value of the security. All other securities for which over-the- counter market quotations are readily available are valued at their last bid price. When market quotations are not readily available, when the Adviser determines the last bid price does not accurately reflect the current value or when restricted securities are being valued, such securities are valued as determined in good faith by the Adviser, in conformity with guidelines adopted by and subject to review of the Board of Trustees of the Trust. Fixed income securities generally are valued by using market quotations, but may be valued on the basis of prices furnished by a pricing service when the Adviser believes such prices accurately reflect the fair market value of such securities. A pricing service utilizes electronic data processing techniques based on yield spreads relating to securities with similar characteristics to determine prices for normal institutional-size trading units of debt securities without regard to sale or bid prices. When prices are not readily available from a pricing service, or when restricted or illiquid securities are being valued, securities are valued at fair value as determined in good faith by the Adviser, subject to review of the Board of Trustees. Short term investments in fixed income securities with maturities of less than 60 days when acquired, or which subsequently are within 60 days of maturity, are valued by using the amortized cost method of valuation, which the Board has determined will represent fair value. AIT VISION U.S. EQUITY PORTFOLIO Notes to Financial Statements April 30, 1996 (Unaudited) Federal Income Taxes - The Fund intends to qualify each year as a "regulated investment company" under 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 it distributes substantially all of its net investment income and any realized capital gains. Dividends and Distributions - The Fund intends to distribute substantially all of its net investment income as dividends to its shareholders on an annual basis. The Fund intends to distribute its net long term capital gains and its net short term capital gains at least once a year. Other - The Fund follows industry practice and records security transactions on the trade date. The specific identification method is used for determining gains or losses for financial statements and income tax purposes. Dividend income is recorded on the ex-dividend date and interest income is recorded on an accrual basis. NOTE 3. INVESTMENT ADVISORY AGREEMENT The Fund retains LBS Capital Management, Inc. (the "Adviser") to manage the Fund's investments. Dean S. Barr and Walter J. Loick are the controlling shareholders of the Adviser. Douglas W. Case, CFA, Director of Equity Portfolio Mangement, and Dean S. Barr, Managing Director and Chief Investment Officer, are primarily responsible for the day to day managment of the Fund's portfolio. Under the terms of the management agreement, (the "Agreement"), the Adviser manages the Fund's investments subject to approval of the Board of Trustees and pays all of the expenses of the Fund except brokerage, taxes, interest, fees and expenses of non-interested persons, trustees, and extraordinary expenses. As compensation for its management services and agreement to pay the Fund's expenses, the Fund is obligated to pay the Adviser a fee computed and accrued daily and paid monthly at an annual rate of 1.47% of the average daily net assets of the Fund. The rate of the advisory fees paid by most investment companies to their investment advisers is lower than the rate of the advisory fees paid by the Fund. In this regard, it should be noted that most investment companies pay thier own operating expenses directly, while the Fund's expenses, except those specified above, are paid by the Adviser. For the period from November 6, 1995 through April 30, 1996, the Adviser has received a fee of $1,615 from the Fund. AIT VISION U.S. EQUITY PORTFOLIO Notes to Financial Statements April 30, 1996 (Unaudited) NOTE 4. CAPITAL SHARE TRANSACTIONS As of April 30, 1996 there was an unlimited number of no par value shares of capital stock authorized for the Fund. Transactions in capital stock were as follows: For the period from November 6, 1995 (Commencement of Operations) through April 30, 1996 Shares Amount --------- ---------- Shares sold 42,625 $434,192 Shares issued in reinvestment of dividends 0 0 Shares redeemed (57) (606) --------- ---------- Net increase 42,568 $433,586 ========= ========== Total paid in capital $458,586 ==========
NOTE 5. INVESTMENTS For the period from November 6, 1995 (commencement of operations) through April 30, 1996, purchases and sales of investment securities, other than short- term investments, aggregated $680,673 and $243,664 respectively. The gross unrealized appreciation for all securities totaled $52,121 and the gross unrealized depreciation for all securities totaled $2,638 for a net unrealized appreciation of $49,483 The aggregate cost of securities for federal income tax purposes at April 30, 1996 was $430,482. AmeriPrime Funds PART C. OTHER INFORMATION Item 24. Financial Statements and Exhibits (a) Financial Statements for the Carl Domino Equity Income Fund, AIT Vision U.S. Equity Portfolio and GLOBALT Growth Fund. Included in Part A: (1) Unaudited Financial Highlights from Commencement of Operations through April 30, 1996. Included in Part B: None (1) Report of Independent Public Accountant. (2) Statement of Assets and Liabilities as of October 26, 1995. (3) Unaudited Schedule of Investments - April 30, 1996. (4) Unaudited Statement of Assets and Liabilities - April 30, 1996. (5) Unaudited Statement of Operations for the period from Commencement of Operations through April 30, 1996. (6) Unaudited Statement of Changes in Net Assets for the period from Commencement of Operations through April 30, 1996. (7) Unaudited Financial Highlights for the period from Commencement of Operations through April 30, 1996. (8) Notes to Financial Statements. (b) Exhibits (1) (i) Copy of Registrant's Declaration of Trust, which was filed as an Exhibit to Registrant's Registration Statement, is hereby incorporated by reference. (ii) Copy of Amendment No. 1 to Registrant's Declaration of Trust, which was filed as an Exhibit to Registrant's Pre-Effective Amendment No. 1, is hereby incorporated by reference. (iii) Copy of Amendment No. 2 to Registrant's Declaration of Trust, which was filed as an Exhibit to Registrant's Post-Effective Amendment No. 1, is hereby incorporated by reference. (2) Copy of Registrant's By-Laws, which was filed as an Exhibit to Registrant's Registration Statement, is hereby incorporated by reference. (3) Voting Trust Agreements - None. (4) Specimen of Share Certificates - None. (5) (i) Copy of Registrant's Management Agreement with Carl Domino Associates, L.P., Adviser to Carl Domino Equity Income Fund, which was filed as an Exhibit to Registrant's Pre-Effective Amendment No. 1, is hereby incorporated by reference. (ii) Copy of Registrant's Management Agreement with Jenswold, King & Associates, Adviser to Fountainhead Value Fund, which was filed as an Exhibit to Registrant's Pre-Effective Amendment No. 1, is hereby incorporated by reference. (iii) Copy of Registrant's Management Agreement with LBS Capital Management, Inc., Adviser to AIT Vision U.S. Equity Portfolio, which was filed as an Exhibit to Registrant's Pre-Effective Amendment No. 1, is hereby incorporated by reference. (iv) Copy of Registrant's Management Agreement with GLOBALT, Inc., Adviser to GLOBALT Growth Fund, which was filed as an Exhibit to Registrant's Pre-Effective Amendment No. 1, is hereby incorporated by reference. (v) Copy of Registrant's Management Agreement with Newport Investment Advisors, Inc., Adviser to The MAXIM Contrarian Fund, which was filed as an Exhibit to Registrant's Post-Effective Amendment No. 2, is hereby incorporated by reference. (vi) Copy of Registrant's Management Agreement with IMS Capital Management, Inc., Adviser to the IMS Contrarian Fund, which was filed as an Exhibit to Registrant's Post-Effective Amendment No. 2, is hereby incorporated by reference. (6) Copy of Registrant's Underwriting Agreement with AmeriPrime Financial Securities, Inc., which was filed as an Exhibit to Registrant's Pre-Effective Amendment No. 1, is hereby incorporated by reference. (7) Bonus, Profit Sharing, Pension or Similar Contracts for the benefit of Directors or Officers - None. (8) Copy of Registrant's Agreement with the Custodian, Star Bank, N.A., which was filed as an Exhibit to Registrant's Pre-Effective Amendment No. 1, is hereby incorporated by reference. (9) Copy of Registrant's Agreement with the Administrator, AmeriPrime Financial Services, Inc., which was filed as an Exhibit to Registrant's Pre-Effective Amendment No. 1, is hereby incorporated by reference. (10) Opinion and Consent of Brown, Cummins & Brown Co., L.P.A. is filed herewith. (11) Consent of independent public accountants is filed herewith. (12) Financial Statements Omitted from Item 23 - None. (13) Copy of Letter of Initial Stockholders, which was filed as an Exhibit to Registrant's Pre-Effective Amendment No. 1, is hereby incorporated by reference. (14) Model Plan used in Establishment of any Retirement Plan - None. (15) (i) Copy of Registrant's Rule 12b-1 Distribution Plan for The MAXIM Contrarian Fund, which was filed as an Exhibit to Registrant's Post-Effective Amendment No. 1, is hereby incorporated by reference. (ii) Copy of Registrant's Rule 12b-1 Service Agreements for The MAXIM Contrarian Fund, which was filed as an Exhibit to Registrant's Post-Effective Amendment No. 1, is hereby incorporated by reference. (16) Schedule for Computation of Each Performance Quotation - None. (17) Financial Data Schedule, is filed herewith. (18) Rule 18f-3 Plan - None. (19) (i) Power of Attorney for Registrant and Certificate with respect thereto are filed herewith. (ii) Powers of Attorney for Trustees and Officers are filed herewith. Item 25. Persons Controlled by or Under Common Control with the Registrant As of May 31, 1996, the Carl Domino Associates, L.P., Profit Sharing Trust may be deemed to control the Carl Domino Equity Income Fund, LBS Capital Management, Inc., a Florida corporation, may be deemed to control the AIT Vision U.S. Equity Portfolio, and the Management Psychology Group Pension Plan and Profit Sharing Plan may be deemed to control the GLOBALT Growth Fund, as a result of their respective beneficial ownership of those Funds. Item 26. Number of Holders of Securities (as of April 30, 1996) Title of Class Number of Record Holders Carl Domino Equity Income Fund 22 Fountainhead Value Fund 0 AIT Vision U.S. Equity Portfolio 17 Globalt Growth Fund 20 The MAXIM Contrarian Fund 0 IMS Contrarian Value Fund 0 Item 27. Indemnification (a) Article VI of the Registrant's Declaration of Trust provides for indemnification of officers and Trustees as follows: Section 6.4 Indemnification of Trustees, Officers, etc. Subject to and except as otherwise provided in the Securities Act of 1933, as amended, and the 1940 Act, the Trust shall indemnify each of its Trustees and officers (including persons who serve at the Trust's request as directors, officers or trustees of another organization in which the Trust has any interest as a shareholder, creditor or otherwise (hereinafter referred to as a "Covered Person") against all liabilities, including but not limited to amounts paid in satisfaction of judgments, in compromise or as fines and penalties, and expenses, including reasonable accountants' and counsel fees, incurred by any Covered Person in connection with the defense or disposition of any action, suit or other proceeding, whether civil or criminal, before any court or administrative or legislative body, in which such Covered Person may be or may have been involved as a party or otherwise or with which such person may be or may have been threatened, while in office or thereafter, by reason of being or having been such a Trustee or officer, director or trustee, and except that no Covered Person shall be indemnified against any liability to the Trust or its Shareholders to which such Covered Person would otherwise be subject by reason of willful misfeasance, bad faith, gross negligence or reckless disregard of the duties involved in the conduct of such Covered Person's office. Section 6.5 Advances of Expenses. The Trust shall advance attorneys' fees or other expenses incurred by a Covered Person in defending a proceeding to the full extent permitted by the Securities Act of 1933, as amended, the 1940 Act, and Ohio Revised Code Chapter 1707, as amended. In the event any of these laws conflict with Ohio Revised Code Section 1701.13(E), as amended, these laws, and not Ohio Revised Code Section 1701.13(E), shall govern. Section 6.6 Indemnification Not Exclusive, etc. The right of indemnification provided by this Article VI shall not be exclusive of or affect any other rights to which any such Covered Person may be entitled. As used in this Article VI, "Covered Person" shall include such person's heirs, executors and administrators. Nothing contained in this article shall affect any rights to indemnification to which personnel of the Trust, other than Trustees and officers, and other persons may be entitled by contract or otherwise under law, nor the power of the Trust to purchase and maintain liability insurance on behalf of any such person. The Registrant may not pay for insurance which protects the Trustees and officers against liabilities rising from action involving willful misfeasance, bad faith, gross negligence or reckless disregard of the duties involved in the conduct of their offices. (b) The Registrant may maintain a standard mutual fund and investment advisory professional and directors and officers liability policy. The policy, if maintained, would provide coverage to the Registrant, its Trustees and officers, and could cover its Advisers, among others. Coverage under the policy would include losses by reason of any act, error, omission, misstatement, misleading statement, neglect or breach of duty. (c) Insofar as indemnification for liabilities arising under the Securities Act of 1933 may be permitted to trustees, officers and controlling persons of the Registrant pursuant to the provisions of Ohio law and the Agreement and Declaration of the Registrant or the By-Laws of the Registrant, or otherwise, the Registrant has been advised that in the opinion of the Securities and Exchange Commission such indemnification is against public policy as expressed in the Act and is, therefore, unenforceable. In the event that a claim for indemnification against such liabilities (other than the payment by the Registrant of expenses incurred or paid by a trustee, officer or controlling person of the Trust in the successful defense of any action, suit or proceeding) is asserted by such trustee, officer or controlling person in connection with the securities being registered, the Registrant will, unless in the opinion of its counsel the matter has been settled by controlling precedent, submit to a court of appropriate jurisdiction the question whether such indemnification by it is against public policy as expressed in the Act and will be governed by the final adjudication of such issue. Item 28. Business and Other Connections of Investment Adviser A. Carl Domino Associates, L.P., 580 Village Boulevard, Suite 225, West Palm Beach, Florida 33409, ("CDA"), adviser to the Carl Domino Equity Income Fund, is a registered investment adviser. (1) CDA has engaged in no other business during the past two fiscal years. (2) The following list sets forth other substantial business activities of the partners and officers of CDA during the past two years. (a) Penn Independent Corp., a partner in CDA, is an insurance holding company that operates a premium finance company, a surplus lines insurance company and a wholesale insurance agency. (b) James E. Heerin, Jr., an officer of CDA, is vice president and general counsel of Penn Independent Corp. and an officer and director of Shrimp Culture II, Inc., both at 420 South York Road, Hatboro, PA 19040. Shrimp Culture II, Inc. raises and sells shrimp. (c) Lawrence Katz, a partner in CDA, is an orthopedic surgeon in private practice. (d) Saltzman Partners, a partner in CDA, is a limited partnership that invests in companies and businesses. (e) Cango Inversiones, SA, a partner in CDA, is a foreign business entity that invests in U.S. companies and businesses. B. Jenswold, King & Associates, Inc., 1980 Post Oak Boulevard, Suite 2400, Houston, Texas 77056-3898 ("JKA"), adviser to the Fountainhead Value Fund, is a registered investment adviser. (1) JKA has engaged in no other business during the past two fiscal years. (2) The following list sets forth other substantial business activities of the directors and officers of JKA during the past two years. (a) John Servis, a director of JKA, is a licensed real estate broker. C. LBS Capital Management, Inc., 311 Park Place Boulevard, Suite 330, Clearwater, Florida 34619 ("LBS"), adviser to AIT Vision U.S. Equity Portfolio, is a registered investment adviser. (1) LBS has engaged in no other business during the past two fiscal years. (2) The following list sets forth other substantial business activities of the directors and officers of LBS during the past two fiscal years. (a) John S. Vasen, a director of LBS, is the president of the Pinnacle Companies, an apartment rehabilitation and management business located in Atlanta, Georgia. D. GLOBALT, Inc., 3060 Peachtree Road, N.W., One Buckhead Plaza, Suite 225, Atlanta, Georgia 30305 ("GLOBALT"), adviser to GLOBALT Growth Fund, is a registered investment adviser. (1) GLOBALT has engaged in no other business during the past two fiscal years. (2) The following list sets forth other substantial business activities of the officers and directors of GLOBALT during the past two years. (a) Gregory S. Paulette, an officer of GLOBALT, is the president of GLOBALT Capital Management, a division of GLOBALT. E. Newport Investment Advisors, Inc., 20600 Chagrin Boulevard, Suite 1020, Shaker Heights, Ohio 44122 ("Newport"), adviser to The MAXIM Contrarian Fund, is a registered investment adviser. (1) Newport has engaged in no other business during the past two fiscal years. (2) The following list sets forth other substantial business activities of the officers and directors of Newport during the past two years. (a) Kenneth Holeski, president of Newport, is the vice president of Newport Evaluation Services, Inc., a fiduciary consulting business at 20600 Chagrin Boulevard, Shaker Heights, Ohio 44122, and a registered representative of WRP Investments, Inc., 4407 Belmont Avenue, Youngstown, Ohio 44505, a registered broker/dealer. (b) Donn M. Goodman, vice president of Newport, is the president of Newport Evaluation Services, Inc. F. IMS Capital Management, Inc., 10159 S.E. Sunnyside Road, Suite 330, Portland, Oregon 97015, ("IMS"), Adviser to the IMS Contrarian Value Fund, is a registered investment adviser. (1) IMS has engaged in no other business during the past two fiscal years. (2) The following list sets forth other substantial business activities of the directors and officers of IMS during the past two years - None. Item 29. Principal Underwriters A. AmeriPrime Financial Securities, Inc., is the Registrant's principle underwriter. Kenneth D. Trumpfheller, 1793 Kingswood Drive, Suite 200, Southlake, Texas 76092, is the President, Secretary and Treasurer of the underwriter and the President and a Trustee of the Registrant. Item 30. Location of Accounts and Records Accounts, books and other documents required to be maintained by Section 31(a) of the Investment Company Act of 1940 and the Rules promulgated thereunder will be maintained by the Registrant at 1793 Kingswood Drive, Suite 200, Southlake, Texas 76092 and/or by the Registrant's Custodian, Star Bank, N.A., 425 Walnut Street, Cincinnati, Ohio 45202, and/or transfer and shareholder service agent, American Data Services, Inc., 24 West Carver Street, Huntington, New York 11743. Item 31. Management Services Not Discussed in Parts A or B None. Item 32. Undertakings (a) Not Applicable. (b) The Registrant hereby undertakes to furnish each person to whom a prospectus is delivered with a copy of the Registrant's latest annual report to shareholders, upon request and without charge. (c) The Registrant hereby undertakes to file a Post-Effective Amendment, using financial statements which need not be certified, within four to six months from the effective date of The MAXIM Contrarian Fund registration. (d) The Registrant hereby undertakes to file a Post-Effective Amendment, using financial statements which need not be certified, within four to six months from the effective date of The IMS Contrarian Value Fund registration. SIGNATURES Pursuant to the requirements of the Securities Act of 1933 and the Investment Company Act of 1940, the Registrant certifies that it meets all of the requirements for effectiveness of this Post-Effective Amendment to its Registration Statement pursuant to Rule 485(b) under the Securities Act of 1933 and has duly caused this Registration Statement to be signed on its behalf by the undersigned, thereunto duly authorized, in the City of Cincinnati, State of Ohio, on the 27th day of June, 1996. AmeriPrime Funds By: /s/ Donald S. Mendelsohn --------------------------------------- Donald S. Mendelsohn, Attorney-in-Fact Pursuant to the requirements of the Securities Act of 1933, this Registration Statement has been signed below by the following persons in the capacities and on the dates indicated. Kenneth D. Trumpfheller President and Trustee By:_____________________ Donald S. Mendelsohn, Attorney-in-Fact June ____, 1996 Steve L. Cobb Trustee Gary E. Hippenstiel Trustee Kelli D. Shomaker Treasurer EXHIBIT INDEX PAGE 1. Opinion of Brown, Cummins & Brown Co., L.P.A. . . . . . . . . . EX-99.B10 2. Consent of McCurdy & Associates. . . . . . . . . . . . . . . . . EX-99.B11 3. Financial Data Schedules . . . . . . . . . . . . . . . . . . . . EX-27 4. Power of Attorney for Registrant and Certificate . . . . . . . . EX-99.POA1 5. Powers of Attorney for Trustees and Officers . . . . . . . . . . EX-99.POA2 EX-99.B10 2 OPINION OF COUNSEL BROWN, CUMMINS & BROWN CO., L.P.A. ATTORNEYS AND COUNSELORS AT LAW 3500 CAREW TOWER 441 VINE STREET J.W. BROWN* CINCINNATI, OHIO 45202 JAMES R. CUMMINS TELEPHONE (513) 381-2121 ROBERT S BROWN TELECOPIER (513) 381-2125 OF COUNSEL DONALD S. MENDELSOHN GILBERT BETTMAN LYNNE SKILKEN AMY G. APPLEGATE KATHRYN KNUE PRZYWARA MELANIE S. CORWIN JEFFREY R. TEETERS JOANN M. STRASSER ------- *RETIRED June 27, 1996 AmeriPrime Funds 1793 Kingswood Drive, Suite 200 Southlake, Texas 76092 Gentlemen: This letter is in response to your request for our opinion in connection with the filing of Post-Effective Amendment No. 3 of AmeriPrime Funds (the "Trust"). We have examined a copy of the Trust's Agreement and Declaration of Trust, the Trust's By-Laws, the Trust's record of the various actions by the Trustees thereof, and all such agreements, certificates of public officials, certificates of officers and representatives of the Trust and others, and such other documents, papers, statutes and authorities as we deem necessary to form the basis of the opinion hereinafter expressed. We have assumed the genuineness of the signatures and the conformity to original documents of the copies of such documents supplied to us as original or photostat copies. Based upon the foregoing, we are of the opinion that, after registration is effective for purposes of federal and applicable state securities laws, the shares of each series of the Trust, if issued in accordance with the then current Prospectus and Statement of Additional Information of the Trust, will be legally issued, fully paid and non-assessable. Post-Effective Amendment No. 3 does not contain any disclosure which would render it ineligible to become effective pursuant to Rule 485(b). We herewith give you our permission to file this opinion with the Securities and Exchange Commission as an exhibit to Post-Effective Amendment No. 3 referred to above. Very truly yours, /s/ Brown, Cummins & Brown Co., L.P.A. BROWN, CUMMINS & BROWN CO., L.P.A. BCB:jh EX-99.B11 3 AUDITOR'S CONSENT CONSENT OF INDEPENDENT PUBLIC ACCOUNTANTS As independent public accountants, we hereby consent to the use in this Post-Effective Amendment Number 3 of our report dated October 26, 1995 and to all references to our firm included in or made a part of this Post-Effective Amendment. McCurdy & Associates CPA's, Inc. June 17, 1996 EX-27 4
6 1 GLOBALT GROWTH FUND 6-MOS OCT-31-1996 APR-30-1996 1,802,723 1,914,424 1,488 104,080 0 2,019,992 9,056 0 2,428 11,484 0 1,884,800 172,735 0 (896) 0 12,903 0 111,701 2,008,508 5,447 0 0 6,343 (896) 12,903 111,701 123,708 0 0 0 0 172,735 0 0 2,008,508 0 0 0 0 5,510 0 6,343 1,152,000 10.00 (.01) 1.64 0 0 0 11.63 1.32 0 0
EX-27 5
6 2 CARL DOMINO EQUITY FUND 6-MOS OCT-31-1996 APR-30-1996 793,969 845,073 19,586 88,232 0 952,891 42,928 0 1,580 44,508 0 844,136 81,932 0 2,622 0 10,521 0 51,104 908,383 7,289 242 0 4,909 2,622 10,521 51,104 64,247 0 0 0 0 82,572 640 0 908,383 0 0 0 0 4,076 0 4,909 660,000 10.00 .04 1.05 0 0 0 11.09 1.79 0 0
EX-27 6
6 3 AIT VISION US EQUITY 6-MOS OCT-31-1996 APR-30-1996 430,482 479,965 5,896 15,257 0 501,118 0 0 843 843 0 348,586 45,068 0 (1,267) 0 (6,527) 0 49,483 500,275 1,028 0 0 2,295 (1,267) (6,527) 49,483 41,689 0 0 0 0 45,125 57 0 500,275 0 0 0 0 1,615 0 2,295 328,000 10.00 (.04) 1.14 0 0 0 11.10 2.07 0 0
EX-99.POA.1 7 POWER OF ATTORNEY POWER OF ATTORNEY KNOWN ALL MEN BY THESE PRESENTS: WHEREAS, AmeriPrime Funds, a business trust organized under the laws of the State of Ohio (hereinafter referred to as the "Trust"), proposes to file with the Securities and Exchange Commission under the provisions of the Securities Act of 1933 and the Investment Company Act of 1940, as amended, Post-Effective Amendment No. 3 to its Registration Statement; and NOW, THEREFORE, the Trust hereby constitutes and appoints JAMES R. CUMMINS and DONALD S. MENDELSOHN, and each of them, its attorneys for it and in its name, place and stead, to execute and file such Post-Effective Amendment, hereby giving and granting to said attorneys full power and authority to do and perform all and every act and thing whatsoever requisite and necessary to be done in and about the premises as fully to all intents and purposes as it might or could do if personally present at the doing thereof, hereby ratifying and confirming all that said attorneys may or shall lawfully do or cause to be done by virtue hereof. IN WITNESS WHEREOF, the Trust has caused its name to be subscribed hereto by the President this 8th day of May, 1996. ATTEST: AmeriPrime Funds _______________________________ By: /s/ Kenneth D. Trumpfheller Kelli D. Shomaker, Secretary KENNETH D. TRUMPFHELLER, President STATE OF TEXAS ) ) ss: COUNTY OF TARRANT ) Before me, a Notary Public, in and for said county and state, personally appeared KENNETH D. TRUMPFHELLER, President, who represented that he is duly authorized in the premises, and who is known to me to be the person described in and who executed the foregoing instrument, and he duly acknowledged to me that he executed and delivered the same for the purposes therein expressed. WITNESS my hand and official seal this 8th day of May, 1996. /s/ Amy Beth Carter ------------------------------------------- Notary Public POWER OF ATTORNEY KNOWN ALL MEN BY THESE PRESENTS: WHEREAS, AmeriPrime Funds, a business trust organized under the laws of the State of Ohio (hereinafter referred to as the "Trust"), proposes to file with the Securities and Exchange Commission under the provisions of the Securities Act of 1933 and the Investment Company Act of 1940, as amended, Post-Effective Amendment No. 3 to its Registration Statement; and NOW, THEREFORE, the Trust hereby constitutes and appoints JAMES R. CUMMINS and DONALD S. MENDELSOHN, and each of them, its attorneys for it and in its name, place and stead, to execute and file such Post-Effective Amendment, hereby giving and granting to said attorneys full power and authority to do and perform all and every act and thing whatsoever requisite and necessary to be done in and about the premises as fully to all intents and purposes as it might or could do if personally present at the doing thereof, hereby ratifying and confirming all that said attorneys may or shall lawfully do or cause to be done by virtue hereof. IN WITNESS WHEREOF, the Trust has caused its name to be subscribed hereto by the President this 10th day of June, 1996. ATTEST: AmeriPrime Funds /s/ Kelli D. Shomaker By:____________________________________ Kelli D. Shomaker, Secretary KENNETH D. TRUMPFHELLER, President STATE OF TEXAS ) ) ss: COUNTY OF BRAZOS ) Before me, a Notary Public, in and for said county and state, personally appeared KELLI D. SHOMAKER, Secretary, who represented that she is duly authorized in the premises, and who is known to me to be the person described in and who executed the foregoing instrument, and she duly acknowledged to me that she executed and delivered the same for the purposes therein expressed. WITNESS my hand and official seal this 10th day of June, 1996. /s/ Cynthia Flippen ------------------------------------------- Notary Public CERTIFICATE The undersigned, Secretary of AmeriPrime Funds, hereby certifies that the following resolution was duly adopted by a majority of the Board of Trustees at a meeting held April 24, 1996, and is in full force and effect: "WHEREAS, AmeriPrime Funds, a business trust organized under the laws of the State of Ohio (hereinafter referred to as the "Trust"), proposes to file with the Securities and Exchange Commission under the provisions of the Securities Act of 1933 and the Investment Company Act of 1940, as amended, Post-Effective Amendment No. 3 to its Registration Statement; NOW, THEREFORE, the Trust hereby constitutes and appoints JAMES R. CUMMINS and DONALD S. MENDELSOHN, and each of them, its attorneys for it and in its name, place and stead, to execute and file such Post-Effective Amendment, hereby giving and granting to said attorneys full power and authority to do and perform all and every act and thing whatsoever requisite and necessary to be done in and about the premises as fully to all intents and purposes as it might or could do if personally present at the doing thereof, hereby ratifying and confirming all that said attorneys may or shall lawfully do or cause to be done by virtue hereof." Dated: May 6, 1996 /s/ Kelli D. Shomaker ------------------------------------------- Kelli D. Shomaker, Secretary AmeriPrime Funds EX-99.POA.2 8 POWER OF ATTORNEY POWER OF ATTORNEY KNOW ALL MEN BY THESE PRESENTS: WHEREAS, AmeriPrime Funds, a business trust organized under the laws of the State of Ohio (hereinafter referred to as the "Trust"), proposes to file with the Securities and Exchange Commission under the provisions of the Securities Act of 1933 and the Investment Company Act of 1940, as amended, Post-Effective Amendment No. 3 to its Registration Statement; and WHEREAS, the undersigned is a Trustee and the President of the Trust; NOW, THEREFORE, the undersigned hereby constitutes and appoints JAMES R. CUMMINS and DONALD S. MENDELSOHN, and each of them, his attorneys for him and in his name, place and stead, and in his office and capacity in the Trust, to execute and file such Post-Effective Amendment, hereby giving and granting to said attorneys full power and authority to do and perform all and every act and thing whatsoever requisite and necessary to be done in and about the premises as fully to all intents and purposes as he might or could do if personally present at the doing thereof, hereby ratifying and confirming all that said attorneys may or shall lawfully do or cause to be done by virtue hereof. IN WITNESS WHEREOF, the undersigned has hereunto set his hand this 3rd day of May, 1996. /s/ Kenneth D. Trumpfheller ---------------------------------------------- KENNETH D. TRUMPFHELLER, Trustee and President STATE OF TEXAS ) ) ss: COUNTY OF TARRANT ) Before me, a Notary Public, in and for said county and state, personally appeared KENNETH D. TRUMPFHELLER, known to me to be the person described in and who executed the foregoing instrument, and who acknowledged to me that he executed and delivered the same for the purposes therein expressed. WITNESS my hand and official seal this 3rd day of May, 1996. /s/ Cynthia K. Mays ------------------------------------------- Notary Public POWER OF ATTORNEY KNOW ALL MEN BY THESE PRESENTS: WHEREAS, AmeriPrime Funds, a business trust organized under the laws of the State of Ohio (hereinafter referred to as the "Trust"), proposes to file with the Securities and Exchange Commission under the provisions of the Securities Act of 1933 and the Investment Company Act of 1940, as amended, Post-Effective Amendment No. 3 to its Registration Statement; and WHEREAS, the undersigned is a Trustee of the Trust; NOW, THEREFORE, the undersigned hereby constitutes and appoints JAMES R. CUMMINS and DONALD S. MENDELSOHN, and each of them, his attorneys for him and in his name, place and stead, and in his office and capacity in the Trust, to execute and file such Post-Effective Amendment, hereby giving and granting to said attorneys full power and authority to do and perform all and every act and thing whatsoever requisite and necessary to be done in and about the premises as fully to all intents and purposes as he might or could do if personally present at the doing thereof, hereby ratifying and confirming all that said attorneys may or shall lawfully do or cause to be done by virtue hereof. IN WITNESS WHEREOF, the undersigned has hereunto set his hand this 6th day of May, 1996. /s/ Steve L. Cobb ------------------------------------------- STEVE L. COBB, Trustee STATE OF TEXAS ) ) ss: COUNTY OF DALLAS ) Before me, a Notary Public, in and for said county and state, personally appeared STEVE L. COBB, known to me to be the person described in and who executed the foregoing instrument, and who acknowledged to me that he executed and delivered the same for the purposes therein expressed. WITNESS my hand and official seal this 6th day of May, 1996. /s/ Debra Hildebrandt ------------------------------------------- Notary Public POWER OF ATTORNEY KNOW ALL MEN BY THESE PRESENTS: WHEREAS, AmeriPrime Funds, a business trust organized under the laws of the State of Ohio (hereinafter referred to as the "Trust"), proposes to file with the Securities and Exchange Commission under the provisions of the Securities Act of 1933 and the Investment Company Act of 1940, as amended, Post-Effective Amendment No. 3 to its Registration Statement; and WHEREAS, the undersigned is a Trustee of the Trust; NOW, THEREFORE, the undersigned hereby constitutes and appoints JAMES R. CUMMINS and DONALD S. MENDELSOHN, and each of them, his attorneys for him and in his name, place and stead, and in his office and capacity in the Trust, to execute and file such Post-Effective Amendment, hereby giving and granting to said attorneys full power and authority to do and perform all and every act and thing whatsoever requisite and necessary to be done in and about the premises as fully to all intents and purposes as he might or could do if personally present at the doing thereof, hereby ratifying and confirming all that said attorneys may or shall lawfully do or cause to be done by virtue hereof. IN WITNESS WHEREOF, the undersigned has hereunto set his hand this 6th day of May, 1996. /s/ Gary E. Hippenstiel ------------------------------------------- GARY E. HIPPENSTIEL, Trustee STATE OF TEXAS ) ) ss: COUNTY OF HARRIS ) Before me, a Notary Public, in and for said county and state, personally appeared GARY E. HIPPENSTIEL, known to me to be the person described in and who executed the foregoing instrument, and who acknowledged to me that he executed and delivered the same for the purposes therein expressed. WITNESS my hand and official seal this 6th day of May, 1996. /s/ Shannon Iles ------------------------------------------- Notary Public POWER OF ATTORNEY KNOW ALL MEN BY THESE PRESENTS: WHEREAS, AmeriPrime Funds, a business trust organized under the laws of the State of Ohio (hereinafter referred to as the "Trust"), proposes to file with the Securities and Exchange Commission under the provisions of the Securities Act of 1933 and the Investment Company Act of 1940, as amended, Post-Effective Amendment No. 3 to its Registration Statement; and WHEREAS, the undersigned is Treasurer of the Trust; NOW, THEREFORE, the undersigned hereby constitutes and appoints JAMES R. CUMMINS and DONALD S. MENDELSOHN, and each of them, her attorneys for her and in her name, place and stead, and in her office and capacity in the Trust, to execute and file such Post-Effective Amendment, hereby giving and granting to said attorneys full power and authority to do and perform all and every act and thing whatsoever requisite and necessary to be done in and about the premises as fully to all intents and purposes as she might or could do if personally present at the doing thereof, hereby ratifying and confirming all that said attorneys may or shall lawfully do or cause to be done by virtue hereof. IN WITNESS WHEREOF, the undersigned has hereunto set her hand this 6th day of May, 1996. /s/ Kelli D. Shomaker ------------------------------------------- KELLI D. SHOMAKER, Treasurer STATE OF TEXAS ) ) ss: COUNTY OF BRAZOS ) Before me, a Notary Public, in and for said county and state, personally appeared KELLI D. SHOMAKER, known to me to be the person described in and who executed the foregoing instrument, and who acknowledged to me that she executed and delivered the same for the purposes therein expressed. WITNESS my hand and official seal this 6th day of May, 1996. /s/ Marsh Lee Berger ------------------------------------------- Notary Public -----END PRIVACY-ENHANCED MESSAGE-----