-----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, WNnXwBBe1tPSXVhymPCqdFPU7Lg7qF8DzuT8iHhialCEgPy9XATVRxT3kGx6xFR2 mZBIwSXMCJaUvM71mFplDw== 0001000579-00-000042.txt : 20000414 0001000579-00-000042.hdr.sgml : 20000414 ACCESSION NUMBER: 0001000579-00-000042 CONFORMED SUBMISSION TYPE: N-30D PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 19991031 FILED AS OF DATE: 20000413 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: OH FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: N-30D SEC ACT: SEC FILE NUMBER: 811-09096 FILM NUMBER: 599971 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: SOUTHLAKE STATE: TX ZIP: 76092 N-30D 1 AMERIPRIME FUNDS Florida Street Bond Fund Report To Shareholders For the Year Ended October 31, 1999 Dear Fellow Shareholders, Fiscal 1999 was nothing to cheer about for bond investors. With the Federal Reserve in a posture of reversing the easing moves it made in 1998 in response to the Asian financial crisis, interest rates rose across all maturities. The most dramatic increase was in the intermediate maturities, indicating that investors are concerned about the economy's high growth rate and the threat of future inflation. The table and graph below shows the total return of the Florida Street Bond Fund along with those of the market indices used for comparison.
PERFORMANCE TABLE Periods Ended 10/31/1999 SINCE AVG. ANN. RETURN 6 MONTHS 1 YEAR INCEPTION SINCE INCEPTION -------- ------------ --------- --------------- Florida St. Bond Fund -5.03% -1.45% -0.34% -0.15% 7-10 Year Treasury Index -1.74% -4.14% 13.53% 5.82% Merrill Lynch H.Y. Bond Index -3.00% 5.62% 9.30% 4.04%
Note: Past performance does not predict future results. Period Ended ML Hi Yld 7-10Yr Tr FL Bond --------------------------------- 8/4/97 $10,000 $10,000 $10,000 8/31/97 10,014 $9,940 $9,970 9/30/97 10,194 $10,137 $10,100 10/31/97 10,246 $10,340 $10,090 11/30/97 10,338 $10,370 $10,079 12/31/97 10,419 $10,513 $10,165 1/31/98 10,607 $10,727 $10,307 2/28/98 10,668 $10,681 $10,301 3/31/98 10,777 $10,710 $10,376 4/30/98 10,818 $10,753 $10,447 5/31/98 10,949 $10,860 $10,364 6/30/98 10,950 $10,984 $10,384 7/31/98 11,058 $11,015 $10,554 8/31/98 10,388 $11,442 $10,048 9/30/98 10,507 $11,929 $9,979 10/31/98 10,348 $11,842 $9,922 11/30/98 10,886 $11,772 $10,356 12/31/98 10,866 $11,846 $10,034 1/31/99 11,013 $11,889 $10,174 2/28/99 10,938 $11,457 $10,236 3/31/99 11,065 $11,524 $10,400 4/30/99 11,268 $11,554 $10,450 5/31/99 11,164 $11,346 $10,458 6/30/99 11,137 $11,321 $10,544 7/31/99 11,152 $11,266 $10,553 8/31/99 11,034 $11,258 $10,496 9/30/99 10,990 $11,377 $10,366 10/31/99 10,930 $11,353 $9,976
The chart shows the value of a hypothetical initial investment of $10,000 in the Fund, the Merrill Lynch High Yield Index and the 7-10 Year Treasury Index on August 4, 1997 and held through October 31, 1999. The Merrill Lynch High Yield Index is a widely recognized unmanaged index of non-investment grade U.S. domestic bonds. Performance figures include the change in value of the bonds in the index, reinvestment of dividends, and are not annualized. The index return does not reflect expenses, which have been deducted from the Fund's return. The Fund's return represents past performance and is not predictive of future results. During the early part of the fiscal year, the high yield sector showed strong returns relative to high-grade bonds, as strong economic growth allowed corporate yield spreads to tighten versus Treasury issues. Then conditions worsened as negative supply/demand conditions related to concerns over Y2K and default experience in certain sectors led to a downturn in the sector and the Fund. The Fund underperformed the Merrill Lynch High Yield Index for the year for several reasons. The fund was under-weighted in the energy sector, which generated strong returns due to rising energy prices. Also, the Fund holds a greater weight in several securities in the consumer, chemical and communications sectors that are considered distressed. We have selected and maintained these holdings after careful research. In each case we are anticipating attractive returns in these securities over the next few years. While the concerns outlined above may weigh on the Fund in the short term, we continue to see a high probability of strong relative returns in the high yield sector and in the Florida Street Bond Fund in particular. Important factors in investors favor are 1) a growing economy, which should allow yield spreads to narrow from their current level, 2) a very high current yield which, alone will represent an attractive return, and 3) an average maturity of approximately six years which mitigates interest rate risk. COMMENTARY ON RETURNS FOR THE YEAR ENDED DECEMBER 31, 1999 For the calendar year, the Fund achieved good results versus its benchmarks. The total return for the Fund was 4.83%. The Merrill Lynch High Yield Index showed a return of 2.51% while the 7-10 Year U.S Treasury Index declined 5.42%. Thank you for your support. Walter A. Morales, CFA THIS REPORT AND THE FINANCIAL STATEMENTS CONTAINED HEREIN ARE SUBMITTED FOR THE GENERAL INFORMATION OF THE SHAREHOLDERS OF THE FUND; THIS REPORT IS NOT AUTHORIZED FOR DISTRIBUTION TO PROSPECTIVE SHAREHOLDERS UNLESS PRECEDED OR ACCOMPANIED BY AN EFFECTIVE PROSPECTUS. READ THE PROSPECTUS CAREFULLY BEFORE INVESTING.
FLORIDA STREET BOND FUND SCHEDULE OF INVESTMENTS - OCTOBER 31, 1999 COMMON STOCK - 2.8% SHARES VALUE Golden State Bancorp Litigation - Warrants (b) 82,000 $ 82,000 Covad Communications Group - Warrants (b) 250 116,626 Firstworld Communication, Inc. - Warrants (b) 1,000 70,125 Homeland Stores, Inc. (b) 58,286 214,930 JPS Textile Group, Inc. (b) 8,245 24,220 ----------------- TOTAL COMMON STOCK (COST $569,189) 507,901 ----------------- PREFERRED STOCK - 4.2% Phone Tel Technologies, Inc. 3,019 42,154 Trikon Technologies, Inc. Series H 192,516 721,934 ----------------- TOTAL PREFERRED STOCK (COST $863,500) 764,088 ----------------- PRINCIPAL CORPORATE BONDS - 61.2% AMOUNT VALUE American Eco Corp. 9.625%, 5/15/08 $ 500,000 292,500 American Rice, Inc. 13%, 7/31/02 (c) 800,000 324,000 Amresco 10%, 3/15/04 5,000 2,725 Amscan Holdings, Inc. 9.875%, 12/15/07 (d) 250,000 203,750 Bally Total Fitness Holdings Series D 9.875%, 10/15/07 150,000 142,500 Brauns Fashions, Inc. 12%, 1/1/05 460,000 440,450 Building Materials Corp. 8%, 10/15/07 (d) 100,000 91,250 Cafeteria Operators, Inc. 12%, 12/31/01 285,000 276,450 Covad Communications Group 0%, 3/15/08 (a)(d) 250,000 140,000 DiGiorgio Corp. 10%, 6/15/07 100,000 92,750 Dimon, Inc. 8.875%, 6/1/06 175,000 158,845 Equimar Shipholding, Inc. 9.875%, 7/1/07 250,000 153,750 Firstworld Communications, Inc. 0% 4/15/08 (a) 1,000,000 540,000 Global Star, LP 11.25%, 6/15/04 175,000 100,625 Homeland Stores, Inc. 10%, 8/1/03 640,000 476,800 Iridium Capital Series B 14%, 7/15/05 (c) 2,115,000 137,475 Laroche Industries, Inc. 9.50%, 9/15/07 1,500,000 382,500 Loehmanns, Inc. 11.875%, 5/15/03 (c) 2,000,000 380,000 Maxim Group, Inc. 9.25%, 10/15/07 150,000 117,750 McMillin Cos. LLC 13%, 8/31/06 (d) 1,020,000 1,020,000 Mrs. Fields Holdings Inc. 14%, 12/1/05 500,000 247,500 Mrs. Fields Original Cookies, Inc. 10.125%, 12/1/04 (d) 350,000 297,500 National Equipment, Inc. 10%, 11/30/04 150,000 146,250 Oakwood Homes Corp. 7.875%, 3/1/04 10,000 7,644 Packaged Ice, Inc. 9.75%, 2/1/05 1,035,000 856,462 Paging Network Do Brasil, SA 13.50%, 6/6/05 200,000 41,500 Phar-Mor, Inc. 11.72%, 9/11/02 105,000 103,950 Ram Energy, Inc. 11.50%, 2/15/08 750,000 341,250 Service Merchandise, Inc. 9%, 12/15/04 (c) 2,656,000 401,720 Speciality Foods Corp.: 11.25%, 8/15/03 330,000 259,050 0%, 8/15/05 (a) 250,000 35,000 FLORIDA STREET BOND FUND SCHEDULE OF INVESTMENTS - OCTOBER 31, 1999 - CONTINUED PRINCIPAL CORPORATE BONDS - CONTINUED AMOUNT VALUE Transamerica Energy, Inc. 11.50%, 6/15/02 (c) $ 350,000 $ 40,250 Tricon Global Restaurant 7.45% 5/15/05 300,000 288,477 United Refining Co. 10.75%, 6/15/07 240,000 162,600 UST, Inc. 7.25%, 6/1/09 15,000 14,418 Vantive Corp. 4.75%, 9/1/02 1,500,000 1,231,875 Webb Dell, Inc. 9.375%, 5/1/09 205,000 173,225 Westfed Holding Management 15.5%, 9/15/99 (c) 2,200,000 561,000 Wickes, Inc. 11.625%, 02/15/03 600,000 514,500 ----------------- TOTAL CORPORATE BONDS (COST $16,019,590) 11,198,291 ----------------- CONVERTIBLE BONDS - 19.7% Aspen Technology, Inc. 5.25% 6/15/05 1,000,000 638,750 Halter Marine Group, Inc. 4.5%, 9/15/04 1,000,000 633,750 P-Com Inc. 4.25%, 11/1/02 85,000 45,475 Parker Drilling Co. 5.50%, 8/1/04 1,440,000 1,022,400 S3, Inc. 5.75%, 10/1/03 500,000 445,000 Tops Appliance City, Inc. 6.5%, 11/30/03 150,000 60,000 U.S. Diagnostic, Inc. 9%, 3/31/03 1,135,000 766,125 ----------------- TOTAL CONVERTIBLE BONDS (COST $3,602,348) 3,611,500 ----------------- MUNICIPAL OBLIGATIONS - TAXABLE - 2.6% Mississippi Development Bank Special Obligation 8.5%, 12/1/18 (COST $455,152) 500,000 465,340 ----------------- U.S. GOVERNMENT OBLIGATIONS - 4.4% Fannie Mae REMIC 6.5%, 7/18/28 1,981,352 358,020 Fannie Mae, Series 93-124, 0%, 10/25/22 256,290 154,069 Freddie Mac, Series 1856 SA, 3.313%, 3/15/24 (e) 9,376,978 297,381 ----------------- TOTAL U.S. GOVERNMENT OBLIGATIONS (COST $766,618) 809,470 ----------------- TOTAL INVESTMENTS - 94.9% (COST $22,276,397) 17,356,590 ----------------- OTHER ASSETS LESS LIABILITIES - 5.1% 937,270 ----------------- TOTAL NET ASSETS - 100.0% $ 18,293,860 ================= (a) Security initially issued in zero coupon form which converts to coupon form at a specified rate and date. The coupon rate shown is the rate at October 31, 1999. (b) Non-income producing (c) Non-income producing - issuer is in default or has filed for protection under the Federal Bankruptcy Code. (d) Security exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. At October 31, 1999, the value of these securities amounted to $1,752,500 or 9.58% of net assets. (e) Floating rate security; the coupon rate shown represents the rate at October 31, 1999.
FLORIDA STREET BOND FUND OCTOBER 31, 1999 Statement of Assets & Liabilities ASSETS Investment in securities, at value (cost $22,276,397) $ 17,356,590 Interest receivable 940,893 Receivable from broker 88,043 Dividend receivable 2,941 Receivable from investment advisor for reimbursed expenses 40,396 ------------------ TOTAL ASSETS 18,428,863 LIABILITIES Payable to custodian bank $ 93,425 Accrued investment advisory fee payable 17,683 Payable for securities purchased 22,714 Miscellaneous expenses 1,181 ----------------- TOTAL LIABILITIES 135,003 ------------------ NET ASSETS $ 18,293,860 ================== Net Assets consist of: Paid in capital $ 23,883,277 Accumulated net investment loss (5,788) Accumulated net realized gain (loss) on investments (663,822) Net unrealized depreciation on investments (4,919,807) ------------------ NET ASSETS, for 2,429,193 shares $ 18,293,860 ================== NET ASSET VALUE Net Assets Offering price and redemption price per share ($18,293,860 / 2,429,193) $ 7.53 ==================
FLORIDA STREET BOND FUND STATEMENT OF OPERATIONS FOR THE PERIOD ENDED OCTOBER 31, 1999 INVESTMENT INCOME Dividend Income $ 6,201 Interest Income 3,842,367 Miscellaneous Income 4,426 --------------- TOTAL INCOME 3,852,994 EXPENSES Investment advisory fee $ 228,813 Interest expenses 10,431 Trustees fees 1,127 Federal taxes 3,148 --------------- Total expenses before reimbursement 243,519 Reimbursed expenses (87,510) --------------- Total operating expenses 156,009 --------------- NET INVESTMENT INCOME 3,696,985 --------------- REALIZED & UNREALIZED GAIN (LOSS) Net realized gain (loss) on investment securities (663,804) Change in net unrealized appreciation (depreciation) on investment securities (3,368,296) --------------- Net gain (loss) on investment securities (4,032,100) --------------- Net increase (decrease) in net assets resulting from operations $ (335,115) ===============
FLORIDA STREET BOND FUND STATEMENT OF CHANGES IN NET ASSETS YEAR YEAR ENDED ENDED OCTOBER 31, OCTOBER 31, 1999 1998 ----------------- ----------------- INCREASE IN NET ASSETS OPERATIONS Net investment income $ 3,696,985 $ 1,222,554 Net realized gain (loss) on investment securities (663,804) 71,019 Change in net unrealized appreciation (depreciation) (3,368,296) (1,591,571) ----------------- ----------------- Net increase (decrease) in net assets resulting from operations (335,115) (297,998) ----------------- ----------------- DISTRIBUTIONS TO SHAREHOLDERS From net investment income (3,688,339) (1,237,025) From net realized gain (71,037) - ----------------- ----------------- Total distributions (3,759,376) (1,237,025) ----------------- ----------------- SHARE TRANSACTIONS Net proceeds from sale of shares 5,070,098 13,541,571 Shares issued in reinvestment of distributions 3,586,408 1,166,552 Shares redeemed (6,196,752) (533,511) ----------------- ----------------- NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM SHARE TRANSACTIONS 2,459,754 14,174,612 ----------------- ----------------- TOTAL INCREASE (DECREASE) IN NET ASSETS (1,634,737) 12,639,589 NET ASSETS Beginning of period 19,928,597 7,289,008 ----------------- ----------------- End of period [including accumulated net investment income/ (loss) of (5,788)and $(14,436), respectively] $ 18,293,860 $ 19,928,597 ================= =================
FLORIDA STREET BOND FUND FINANCIAL HIGHLIGHTS YEAR YEAR PERIOD ENDED ENDED ENDED OCTOBER 31, OCTOBER 31, OCTOBER 31, 1999 1998 1997 (A) -------------- --------------- -------------- SELECTED PER SHARE DATA Net asset value, beginning of period $ 9.16 $ 9.95 $ 10.00 -------------- --------------- -------------- Income from investment operations Net investment income 1.51 0.85 0.21 Net realized and unrealized gain(loss) (1.60) (0.79) (0.12) -------------- --------------- -------------- Total from investment operations (0.09) 0.06 0.09 -------------- --------------- -------------- Less Distributions From net investment income (1.51) (0.85) (0.02) From net realized gain(loss) (0.03) - (0.12) -------------- --------------- -------------- Total distributions (1.54) (0.85) (0.14) -------------- --------------- -------------- Net asset value, end of period $ 7.53 $ 9.16 $ 9.95 ============== =============== ============== TOTAL RETURN (b) (1.45)% 0.33% 0.90% RATIOS AND SUPPLEMENTAL DATA Net assets, end of period (000) $18,294 $19,929 $7,289 Ratio of expenses to average net assets 0.75% 0.75% 0.53% (c) Ratio of expenses to average net assets before reimbursement 1.17% 1.10% 1.10% (c) Ratio of net investment income to 17.77% 8.73% 3.95% (c) average net assets Ratio of net investment income to average net assets before reimbursement 17.35% 8.38% 3.38% (c) Portfolio turnover rate 129.38% 10.45% 60.55% (c) (a) For the period August 4, 1997 (commencement of operations) to October 31, 1997 (b) For periods of less than a full year, total returns are not annualized. (c) Annualized
Florida Street Growth Fund Report To Shareholders For the Year Ended October 31, 1999 Dear Fellow Shareholders, As shown in the graph below, fiscal 1999 was a volatile one for the Florida Street Growth Fund and the equity indices. Fortunately, it was a rewarding year as well. The Fund achieved an annual return of 20.06%, well above the 12.02% return of the S&P 600 Small-Cap Index, and in line with the S&P Mid-Cap Index return of 21.06%. Since inception, the Fund's 10.43% return has exceeded the return of the Small-Cap Index by over 6%, but has not kept pace with the Mid-Cap return of 28.65%. Stocks progressed in fits and starts throughout the year as investors grappled with uncertainty over the outlook for interest rates and Federal Reserve Policy, as well as corporate earnings growth. With market valuations at historically high levels, any hint of trouble regarding inflation, interest rates or earnings caused sharp price drops in stocks. In each case in 1999, investors regained their positive view of the future, allowing stocks to recover and move into higher territory. We expect volatility to recur whenever events or economic releases call into question the basic tenets of the bull market: low inflation, stable interest rates, continued earnings growth. As fiscal 1999 progressed, it became clearer that though the market was working higher, investor focus was on a rather small number of economic sectors. These included, in broad terms, technology, telecommunications and Internet related groups. We focused our research on these areas in order to increase exposure. Investments were initiated in Qualcomm, Inc., SDL, Inc., Broadcom Corp., Antec Corp., and Xilinx Inc.
PERFORMANCE TABLE Periods Ended 10-31/1999 SINCE AVG. ANN. RETURN 6 MONTHS 1 YEAR INCEPTION SINCE INCEPTION -------- ------------ --------- --------------- Florida St. Growth Fund 2.91% 20.06% 10.43% 4.53% S&P 400 Mid-Cap 1.87% 21.06% 28.65% 11.91% S&P 600 Small-Cap 2.77% 12.02% 4.08% 1.80%
PerPeriod FS S&P S&P0 Growth Mid-Cap Small-Cap 8/6/97 $10,000 $10,000 $10,000 08/31/97 $9,900 $9,848 $10,240 09/30/97 $10,550 $10,414 $10,917 10/30/97 $10,340 $9,961 $10,446 11/30/97 $10,120 $10,108 $10,337 12/31/97 $10,090 $10,500 $10,579 01/30/98 $9,939 $10,300 $10,373 02/28/98 $10,702 $11,153 $11,317 03/31/98 $11,214 $11,655 $11,749 04/30/98 $11,365 $11,868 $11,818 05/31/98 $10,803 $11,334 $11,192 6/30/98 $10,712 $11,405 $11,224 7/31/98 $10,200 $10,963 $10,366 8/31/98 $8,122 $8,924 $8,368 9/30/98 $8,634 $9,756 $8,879 10/31/98 $9,196 $10,627 $9,291 11/30/98 $9,552 $11,157 $9,813 12/31/98 $10,374 $12,504 $10,439 1/31/99 $10,669 $12,016 $10,307 2/28/99 $9,898 $11,388 $9,379 3/31/99 $9,863 $11,706 $9,500 4/30/99 $10,726 $12,629 $10,127 5/31/99 $10,605 $12,685 $10,374 6/30/99 $11,515 $13,364 $10,964 7/31/99 $11,437 $13,080 $10,868 8/31/99 $10,645 $12,631 $10,390 9/30/99 $10,626 $12,242 $10,434 10/31/99 $11,043 $12,865 $10,408
The chart shows the value of a hypothetical initial investment of $10,000 in the Fund, the S&P 400 Mid-Cap Index and the S&P 600 Small-Cap Index on August 6, 1997 and held through October 31, 1999. The S&P 400 Mid-Cap Index and the S&P 600 Small-Cap Index are widely recognized unmanaged indices of common stock prices. Performance figures include the change in value of the stocks in the indices, reinvestment of dividends, and are not annualized. The index returns do not reflect expenses, which have been deducted from the Fund's return. The Fund's return represents past performance and is not predictive of future results.0.0 WHAT FACTORS INFLUENCED THE FUND'S PERFORMANCE DURING THE YEAR? The most important factor was the return to a positive outlook for earnings growth in technology-related industries following the Asian financial crisis. This crisis had diminished expectations in 1998 for U.S. technology companies' sales and earnings. As recovery began to take hold in Asia, it became clearer that these companies' prospects were brighter. Investors began bidding share prices higher. WHAT HOLDINGS AFFECTED THE FUND'S RETURN SIGNIFICANTLY? Stocks making the greatest positive impact on the Fund include 1) Qualcomm, the owner of the standard in wireless communication technology known as CMDA, 2) Netbank, the first internet bank to achieve profitability, 3) SDL, Inc., a manufacturer of fiber optic related products and optoelectronic systems, 4) Cisco Systems, a manufacturer of a broad line of data networking products for corporate enterprise and public service provider markets, and 5) Oracle Corp., a developer of software for enterprise information management. Stocks whose performance has dampened performance include 1) Watson Pharmaceuticals, a manufacturer of generic and proprietary pharmaceutical products, and 2) Rite Aid, a national operator of retail drugstores. Watson stock declined following an FDA warning letter pointing out deficiencies in manufacturing in one of its plants. The company has responded well to the FDA complaint, and the stock is beginning to recover. Rite Aid investors have suffered several negative earnings surprises during the past year, and the stock has plummeted. Our confidence in management was shaken, and we sold the entire position. The shares have continued to decline since then. WHAT ARE THE FUND'S LARGEST HOLDINGS AT THE END OF THE FISCAL YEAR? NAME % OF NET ASSETS 1. Global Crossing Ltd. 4.33 2. Cisco Systems, Inc. 3.49 3. MBNA Corp. 3.44 4. Dycom Industries, Inc. 3.39 5. Qualcomm, Inc. 3.09 ---- 17.74 HOW IS THE FUND POSITIONED FOR THE MARKET ENVIRONMENT AHEAD? We expect the market environment to remain positive for the foreseeable future, but volatility will probably remain high. The fund's exposure to small and mid-cap stocks is a positive for the longer term due to the underperformance of these stocks over the past several years. The Fund maintains a large commitment to technology and telecommunications stocks that add volatility but provides investors exposure to areas of rapid sales and earnings growth. These companies have also been undergoing positive earnings revisions, a powerful force that can drive stock prices higher. We expect these sectors to continue to outperform the general market, but will look for opportunities to pare back holdings when enthusiasm outpaces reality. HOW HAS THE FUND PERFORMED FOR THE CALENDAR YEAR ENDED DECEMBER 31, 1999? For the full year the Fund showed strong results on an absolute basis and relative to its benchmarks. The annual return for 1999 was 39.15%, compared to a 14.72% return for the S&P Mid-Cap 400 Index and 12.41% for the S&P Small-Cap 600 Index. The final quarter of the year proved very rewarding as the Fund returned 35.86% compared to the S&P Mid-Cap and Small-Cap Indices' returns of 17.17% and 12.46%, respectively. Major contributors to this result were technology and telecommunications holdings including Qualcomm, Inc., Global Crossing, SDL, Inc., Broadcom Corp. and Oracle Corp. Thank you for your continued interest in the Florida Street Growth Fund. Richard L. Chauvin, Jr. CFA THIS REPORT AND THE FINANCIAL STATEMENTS CONTAINED HEREIN ARE SUBMITTED FOR THE GENERAL INFORMATION OF THE SHAREHOLDERS OF THE FUND; THIS REPORT IS NOT AUTHORIZED FOR DISTRIBUTION TO PROSPECTIVE SHAREHOLDERS UNLESS PRECEDED OR ACCOMPANIED BY AN EFFECTIVE PROSPECTUS. READ THE PROSPECTUS CAREFULLY BEFORE INVESTING.
FLORIDA STREET GROWTH FUND SCHEDULE OF INVESTMENTS - OCTOBER 31, 1999 COMMON STOCK - 89.7% SHARES VALUE CAPITAL EQUIPMENT - 5.2% Ballard Power Systems, Inc. (a) 1,000 $ 28,062 Cordant Technologies. Inc. 1,000 31,188 General Dynamics Corp. 1,000 55,438 Roper Industries, Inc. 1,200 37,050 SPX Corp. (a) 400 33,900 ----------------- 185,638 ----------------- CONSUMER CYCLICAL - 6.9% Dollar General Corp. 976 25,742 Family Dollar Stores, Inc. 2,000 41,250 Fastenal Co. 1,200 43,500 Lowe's Companies, Inc. 1,000 55,000 Pacific sunware of California (a) 1,300 39,244 SCP Pool Corp. (a) 1,875 42,539 ----------------- 247,275 ----------------- CONSUMER SERVICES - 9.7% Cintas Corp. 1,400 84,350 Concord EFS, Inc. (a) 3,075 83,217 Cybergold, Inc. 2,300 15,525 MedQuist, Inc. (a) 1,000 32,000 NCO Group, Inc. (a) 2,100 88,988 Quanta Services, Inc. (a) 1,600 44,600 ----------------- 348,680 ----------------- ENERGY - 4.7% Baker Hughes, Inc. 1,500 41,906 Core Laboratories N.V. (a) 3,000 55,125 Noble Drilling Corp. (a) 2,000 44,375 Transocean Offshore, Inc. 1,000 27,188 ----------------- 168,594 ----------------- FINANCIAL SERVICES - 10.7% Allied Capital Corp. 4,400 88,275 First Tennessee National Corp. 1,200 40,800 MBNA Corp. 4,487 123,953 Protective Life Corp. 2,200 79,613 State Street Corp. 700 53,287 ----------------- 385,928 ----------------- HEALTH CARE - 4.2% Elan Corp. (a) (c) 2,000 51,500 Watson Pharmaceuticals, Inc. (a) 3,100 98,425 ----------------- 149,925 ----------------- NATURAL RESOURCES/ BASIC MATERIALS - 1.8% Georgia-Pacific Timber Group 2,700 64,463 ----------------- FLORIDA STREET GROWTH FUND SCHEDULE OF INVESTMENTS - OCTOBER 31, 1999 - CONTINUED COMMON STOCK - CONTINUED NETWORK EQUIPMENT - 5.2% Cisco Systems, Inc. (a) 1,700 $ 125,800 Qlogic Corp. (a) 600 62,475 ----------------- 188,275 ----------------- OPTICAL NETWORK EQUIPMENT - 3.0% Ciena Corp. (a) 1,000 35,250 SDL Inc. (a) 600 73,988 ----------------- 109,238 ----------------- SEMICONDUCTORS - 7.3% Broadcom Corp. - Class A (a) 600 76,687 Galileo Technology Ltd. (a) 3,000 68,625 S3, Inc. (a) 4,000 40,000 Xilinx Inc. (a) 1,000 78,625 ----------------- 263,937 ----------------- SOFTWARE - 3.9% Oracle Corp. (a) 1,700 80,856 Usinternetworking, Inc. (a) 1,800 59,962 ----------------- 140,818 ----------------- TECHNOLOGY SERVICES - 3.4% Dycom Industries, Inc. 3,750 122,109 ----------------- TELECOMMUNICATIONS EQUIPMENT - 8.4% Antec Corp. (a) 1,800 87,300 QUALCOMM, Inc. (a) 500 111,375 RF Micro Devices, Inc. (a) 1,000 51,625 Tellabs, Inc. (a) 808 51,106 ----------------- 301,406 ----------------- TELECOMMUNICATIONS - 14.5% Adelphia Business Solutions, Inc. - Class A (a) 1,500 42,563 Alltel Corp. 900 74,925 At Home Corp. - Class A 500 18,687 Cincinnati Bell, Inc. 1,500 31,218 Global Grossing Ltd. (a) 4,510 156,159 High Speed Access Corp. (a) 1,200 31,575 MCI WorldCom, Inc. (a) 900 77,231 Qwest Communications, Inc. (a) 1,500 54,000 Teligent, Inc. - Class A (a) 800 35,900 ----------------- 522,258 ----------------- UTILITIES - 0.9% AES Corp. (a) 600 33,863 ----------------- TOTAL COMMON STOCKS (Cost $2,558,842) 3,232,407 ----------------- FLORIDA STREET GROWTH FUND SCHEDULE OF INVESTMENTS - OCTOBER 31, 1999 - CONTINUED PRINCIPAL MONEY MARKET SECURITIES - 11.1% AMOUNT Federated Prime Obligations Fund, 5.00% (b) (Cost $399,450) $ 399,450 $ 399,450 ----------------- TOTAL INVESTMENTS - 100.8% (COST $2,958,292) 3,631,857 ----------------- OTHER ASSETS LESS LIABILITIES - (0.8)% (29,138) ----------------- TOTAL NET ASSETS - 100.0% $ 3,602,719 ================= (a) Non-income producing (b) Variable rate security; the coupon rate shown represents the rate at October 31, 1999. (c) American Depository Receipt
FLORIDA STREET GROWTH FUND OCTOBER 31, 1999 Statement of Assets & Liabilities ASSETS Investment in securities, at value (cost $2,958,292) $ 3,631,857 Cash 42,979 Receivable for securities sold 29,402 Dividends receivable 348 Interest receivable 1,051 ------------------ TOTAL ASSETS 3,705,637 LIABILITIES Accrued investment advisory fee payable $ 4,200 Payable for securities purchased 98,718 ----------------- TOTAL LIABILITIES 102,918 ------------------ NET ASSETS $ 3,602,719 ================== Net Assets consist of: Paid in capital $ 3,338,608 Accumulated net investment loss (1,331) Accumulated net realized gain (loss) on investments (408,123) Net unrealized appreciation on investments 673,565 ------------------ NET ASSETS, for 328,202 shares $ 3,602,719 ================== NET ASSET VALUE Net Assets Offering price and redemption price per share ($3,602,719 / 328,202) $ 10.98 ==================
FLORIDA STREET GROWTH FUND STATEMENT OF OPERATIONS FOR THE YEAR ENDED OCTOBER 31, 1999 INVESTMENT INCOME Dividend Income $ 25,219 Interest Income 10,452 --------------- TOTAL INCOME 35,671 EXPENSES Investment advisory fee $ 50,958 Trustees' fees 1,127 --------------- Total expenses before reimbursement 52,085 Reimbursed expenses (1,127) --------------- Total operating expenses 50,958 --------------- NET INVESTMENT INCOME (LOSS) (15,287) --------------- REALIZED & UNREALIZED GAIN (LOSS) Net realized gain (loss) on investment securities (106,021) Change in net unrealized appreciation (depreciation) on investment securities 787,262 --------------- Net gain on investment securities 681,241 --------------- Net increase in net assets resulting from operations $ 665,954 ===============
FLORIDA STREET GROWTH FUND STATEMENT OF CHANGES IN NET ASSETS YEAR YEAR ENDED ENDED OCTOBER 31, OCTOBER 31, 1999 1998 ----------------- ----------------- Increase in Net Assets Operations Net investment income (loss) $ (15,287) $ 6,034 Net realized gain (loss) on investment securities (106,021) (295,878) Change in net unrealized appreciation (depreciation) 787,262 (146,025) ----------------- ----------------- Net increase (decrease) in net assets resulting from operations 665,954 (435,869) ----------------- ----------------- DISTRIBUTIONS TO SHAREHOLDERS From net investment income (6,024) (2,075) From net realized gain - (6,224) ----------------- ----------------- Total Distributions (6,024) (8,299) ----------------- ----------------- SHARE TRANSACTIONS Net proceeds from sale of shares 1,232,745 1,857,985 Shares issued in reinvestment of distributions 6,024 8,299 Shares redeemed (1,615,951) (219,626) ----------------- ----------------- NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM SHARE TRANSACTIONS (377,182) 1,646,658 ----------------- ----------------- TOTAL INCREASE IN NET ASSETS 282,748 1,202,490 NET ASSETS Begining of period 3,319,971 2,117,481 ----------------- ----------------- End of period [including accumulated undistributed net investment income (loss) of $(1,331) and $4,693] $ 3,602,719 $ 3,319,971 ================= =================
FLORIDA STREET GROWTH FUND FINANCIAL HIGHLIGHTS YEAR YEAR PERIOD ENDED ENDED ENDED OCTOBER 31, OCTOBER 31, OCTOBER 31, 1999 1998 1997 (A) -------------- -------------- -------------- SELECTED PER SHARE DATA Net asset value, beginning of period $ 9.16 $ 10.19 $ 10.00 -------------- -------------- -------------- Income from investment operations Net investment income (loss) (0.04) 0.02 0.03 Net realized and unrealized gain (loss) 1.88 (1.01) 0.16 -------------- -------------- -------------- Total from investment operations 1.84 (0.99) 0.19 -------------- -------------- -------------- Less Distributions From net investment income (0.02) (0.01) - From net realized gain (loss) - (0.03) - -------------- -------------- -------------- Total Distributions (0.02) (0.04) - -------------- -------------- -------------- Net asset value, end of period $ 10.98 $ 9.16 $ 10.19 ============== ============== ============== TOTAL RETURN (b) 20.06% (9.73)% 1.90% RATIOS AND SUPPLEMENTAL DATA Net assets, end of period (000) $3,603 $3,320 $2,117 Ratio of expenses to average net assets 1.35% 1.25% 1.35% (c) Ratio of expenses to average net assets before reimbursement 1.38% 1.35% 1.35% (c) Ratio of net investment income (loss) to (0.40)% 0.21% 1.14% (c) average net assets Ratio of net investment income (loss) to average net assets before reimbursement (0.43)% 0.12% 1.14% (c) Portfolio turnover rate 111.97% 63.10% 0.87% (c) (a) August 6, 1997 (commencement of operations) to October 31, 1997 (b) For periods of less than a full year, total returns are not annualized. (c) Annualized
FLORIDA STREET FUNDS NOTES TO FINANCIAL STATEMENTS OCTOBER 31, 1999 NOTE 1. ORGANIZATION Florida Street Bond Fund (the "Bond Fund") and Florida Street Growth Fund (the "Growth Fund") are series of the AmeriPrime Funds, an Ohio business trust (the "Trust"). Each Fund is registered under the Investment Company Act of 1940, as amended, as a non-diversified series, open-end management investment company. Each Fund's investment objective is to provide total return over the long term. The Declaration of Trust permits the Trustees to issue an unlimited number of shares of beneficial interest of separate series without par value. NOTE 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 Advisor'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, and the Advisor 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 Advisor, in conformity with guidelines adopted by and subject to review of the Board of Trustees of the Trust (the "Board"). 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 Advisor 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 Advisor, subject to review of the Board. 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. FEDERAL INCOME TAXES- Each Fund intends to qualify each year as a "regulated investment company" under the Internal Revenue Code of 1986, as amended. By so qualifying, each FLORIDA STREET FUNDS NOTES TO FINANCIAL STATEMENTS OCTOBER 31, 1999 - CONTINUED NOTE 2. SIGNIFICANT ACCOUNTING POLICIES - CONTINUED 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. The Florida Street Bond Fund incurred a tax expense of $3,148 for the period ended October 31, 1999. DIVIDENDS AND DISTRIBUTIONS- The Bond Fund intends to declare substantially all of its net investment income as dividends to its shareholders on a daily basis and to pay such dividends monthly. The Growth fund intends to comply with federal tax rules regarding distribution of substantially all of its net investment income and capital gains. These rules may cause multiple distributions during the course of the year. OTHER- Each 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. Discounts and premiums on securities purchased are amortized over the life of the respective securities. Generally accepted accounting principles require that permanent financial reporting tax differences relating to shareholder distributions be reclassified to paid in capital for the Growth Fund. NOTE 3. OPERATING POLICIES RESTRICTED SECURITIES- The Funds are permitted to invest in securities that are subject to legal or contractual restrictions on resale. These securities generally may be resold in transactions exempt from registration or to the public if the securities are registered. Disposal of these securities may involve time-consuming negotiations and expense, and prompt sale at an acceptable price may be difficult. Information regarding restricted securities is included at the end of each applicable fund's schedule of investments. SHORT SALES- A Fund may sell a security it does not own in anticipation of a decline in the fair value of that security. When a Fund sells a security short, it must borrow the security sold short and deliver it to the broker-dealer through which it made the short sale as collateral for its obligation to deliver the security upon conclusion of the sale. A gain, limited to the price at which the Funds sold the security short, or a loss, unlimited in size, will be recognized upon the termination of a short sale. FLORIDA STREET FUNDS NOTES TO FINANCIAL STATEMENTS OCTOBER 31, 1999 - CONTINUED NOTE 4. FEES AND OTHER TRANSACTIONS WITH AFFILIATES The Funds retain Commonwealth Advisors, Inc. (the "Advisor") to manage each Fund's investments. Walter A. Morales, the Advisor's president and chief investment manager, is responsible for the day to day management of the Bond Fund; Richard L. Chauvin, Senior Vice-President of the Advisor, is responsible for the day to day management of the Growth Fund. Under the terms of the management agreement (the "Agreement"), the Advisor manages each Fund's investments subject to approval of the Board of Trustees and pays all of the expenses of each Fund except brokerage commissions, taxes, interest, fees and expenses of non-interested person trustees, and extraordinary expenses. As compensation for its management services and agreement to pay each Fund's expenses, the Funds are obligated to pay the Advisor a fee computed and accrued daily and paid monthly at an annual rate of 1.10% and 1.35% of the average daily net assets of the Bond Fund and the Growth Fund, respectively. It should be noted that most investment companies pay their own operating expenses directly, while the Funds' expenses, except those specified above, are paid by the Advisor. For the year ended October 31, 1999, the Advisor received fees of $228,813 and $50,958 from the Bond Fund and the Growth Fund, respectively. The Advisor has voluntarily agreed to waive fees for the Bond Fund for the fiscal year ended October 31, 1999 to the extent necessary to maintain total operating expenses at the rate of 0.75%. The Advisor has voluntarily agreed to reimburse other expenses for the Growth Fund for the fiscal year ended October 31, 1999 to the extent necessary to maintain total operating expenses at the rate of 1.35%. For the year ended October 31, 1999, the Advisor reimbursed expenses of $87,510 and $1,127 for the Bond Fund and the Growth Fund, respectively. Each Fund retains AmeriPrime Financial Services, Inc. (the "Administrator") to manage each Fund's business affairs and to provide each Fund with administrative services, including all regulatory reporting and necessary office equipment and personnel. For the year ended October 31, 1999, the Administrator received fees of $23,280 and $19,783 from the Advisor for administrative services provided to the Bond Fund and the Growth Fund, respectively. Each Fund retains AmeriPrime Financial Securities, Inc. (the "Distributor") to act as the principal distributor of each Fund's shares. There were no payments made to the Distributor for the year ended October 31, 1999. Certain members of management of the Administrator and the Distributor are also members of management of the AmeriPrime Trust. FLORIDA STREET FUNDS NOTES TO FINANCIAL STATEMENTS OCTOBER 31, 1999 - CONTINUED NOTE 5. SHARE TRANSACTIONS BOND FUND. As of October 31, 1999, there was an unlimited number of authorized shares for the Fund. Paid in capital at October 31, 1999 was $23,883,277. Transactions in shares were as follows:
YEAR ENDED YEAR ENDED OCTOBER 31, 1999 OCTOBER 31, 1998 SHARES DOLLARS SHARES DOLLARS Shares sold 574,601 $5,070,098 1,379,576 $13,541,571 Shares issued in reinvestment of dividends 416,536 3,586,408 118,681 1,166,552 Shares redeemed (737,701) (6,196,752) (55,224) (533,511) --------- ------------ ---------- ------------ 253,436 $2,459,754 1,443,033 $14,174,612 ======== ============ ========== ============
GROWTH FUND. As of October 31, 1999, there was an unlimited number of authorized shares for the Fund. Paid in capital at October 31, 1999 was $3,338,608. Transactions in shares were as follows:
YEAR ENDED YEAR ENDED OCTOBER 31, 1999 OCTOBER 31, 1998 SHARES DOLLARS SHARES DOLLARS Shares sold 119,466 $1,232,745 175,386 $1,857,985 Shares issued in reinvestment of dividends 593 6,024 867 8,299 Shares redeemed (154,419) (1,615,951) (21,397) (219,626) ---------- ----------- --------- ----------- (34,360) $(377,182) 154,856 $1,646,658 ========== =========== ========= ===========
FLORIDA STREET FUNDS NOTES TO FINANCIAL STATEMENTS OCTOBER 31, 1999 - CONTINUED NOTE 6. INVESTMENTS BOND FUND. For the year ended October 31, 1999, purchases and sales of investment securities, other than short-term investments, aggregated $26,511,790 and $26,221,451, respectively. The gross unrealized appreciation for all securities totaled $588,361 and the gross unrealized depreciation for all securities totaled $5,508,168 for a net unrealized depreciation of $4,919,807. The aggregate cost of securities for federal income tax purposes at October 31, 1999 was $22,276,397. GROWTH FUND. For the year ended October 31, 1999, purchases and sales of investment securities, other than short-term investments, aggregated $3,901,518 and $4,523,143, respectively. The gross unrealized appreciation for all securities totaled $804,952 and the gross unrealized depreciation for all securities totaled $131,387 for a net unrealized appreciation of $673,565. The aggregate cost of securities for federal income tax purposes at October 31, 1999 was $2,958,292. NOTE 7. ESTIMATES Preparation of financial statements in accordance with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. NOTE 8. RELATED PARTY TRANSACTIONS The Advisor is not a registered broker-dealer of securities and thus does not receive commissions on trades made on behalf of the Funds. The beneficial ownership, either directly or indirectly, of more than 25% of the voting securities of a Fund creates a presumption of control of the Fund, under Section 2(a)(9) of the Investment Company Act of 1940. As of October 31, 1999, Charles Schwab & Co. owned of record in aggregate more than 97% and 93% of the Bond Fund and the Growth Fund, respectively. INDEPENDENT AUDITOR'S REPORT To The Shareholders and Board of Trustees Florida Street Bond Fund and Florida Street Growth Fund We have audited the statement of assets and liabilities, including the portfolio of investments, of the Florida Street Bond Fund and Florida Street Growth Fund (members of the AmeriPrime Fund Series) as of October 31, 1999, and the related statement of operations, the statement of changes in net assets, and the financial highlights for each of the periods indicated. These financial statements and financial highlights are the responsibility of the Funds' management. Our responsibility is to express an opinion on these financial statements and financial highlights 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 financial statements and financial highlights are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. Our procedures included confirmation of securities owned as of October 31, 1999, by correspondence with the custodian and brokers. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of the Florida Street Bond Fund and Florida Street Growth Fund as of October 31, 1999, the results of its operations, the changes in its net assets, and the financial highlights for each of the periods indicated in conformity with generally accepted accounting principles. McCurdy & Associates CPA's, Inc. Westlake, Ohio 44145 November 21, 1999 -----END PRIVACY-ENHANCED MESSAGE-----