-----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, Ro524nGHQJ6mBceRwTYATkPiHeIxYzlSchEffkGtDYM0/NetbuPtm8s4soZGG1jx DTAtLsQKanBJV7HjFAFkog== /in/edgar/work/20000908/0001000579-00-000087/0001000579-00-000087.txt : 20000922 0001000579-00-000087.hdr.sgml : 20000922 ACCESSION NUMBER: 0001000579-00-000087 CONFORMED SUBMISSION TYPE: N-30D PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 20000630 FILED AS OF DATE: 20000908 FILER: COMPANY DATA: COMPANY CONFORMED NAME: AMERIPRIME FUNDS CENTRAL INDEX KEY: 0001000579 STANDARD INDUSTRIAL CLASSIFICATION: [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: 719542 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 0001.txt AMERIPRIME FUNDS A R I S T O N - ------------------------------------------------------------------------------ Ariston Capital Management Corporation 40 Lake Bellevue Drive Suite 220 Bellevue, Washington 98005 Telephone (425) 454-1600 Fax (425) 455-2534 Dear Fellow Shareholder: We are pleased to present to you our Fund's semiannual report for mid-year 2000. Listed below are some comparative total return performance measurements for the periods ended June 30, 2000: 6 Months 1 Year -------- ------ Ariston Convertible Securities Fund -2.60% +62.63% Lipper Convertible Fund Average +6.30% +25.73% Standard & Poor's 500 Stock Index (unmanaged) -0.42% +7.24% Russell 2000 Stock Index (unmanaged) +3.03% +14.32% Lehman Gov./Corp. Bond Index (unmanaged) +4.16% +4.28% Sources: Lipper Analytical Services, Inc. and Wiesenberger, a Thompson Financial Company Comparison of change in value of a $10,000 investment in the Ariston Convertible Securities Fund, the unmanaged Russell 2000 Stock Index and the unmanaged Lehman Brothers Government/Corporate Bond Index Ariston Convertible Lehman Brothers Russell 2000 Securities Fund Govt/Corp Bond Index Stock Index ------------------- -------------------- ------------ 1989 First Quarter Second Quarter Third Quarter Fourth Quarter $10,000 $10,000 $10,000 1990 First Quarter $10,083 $ 9,886 $ 9,779 Second Quarter $10,656 $10,241 $10,155 Third Quarter $ 9,192 $10,302 $ 7,663 Fourth Quarter $ 9,662 $10,827 $ 8,049 1991 First Quarter $11,500 $11,118 $10,443 Second Quarter $11,866 $11,285 $10,281 Third Quarter $12,785 $11,932 $11,120 Fourth Quarter $14,015 $12,568 $11,756 1992 First Quarter $13,821 $12,380 $12,638 Second Quarter $13,119 $12,881 $11,776 Third Quarter $14,065 $13,511 $12,113 Fourth Quarter $15,812 $13,521 $13,922 1993 First Quarter $16,351 $14,151 $14,515 Second Quarter $15,272 $14,577 $14,831 Third Quarter $16,387 $15,061 $16,128 Fourth Quarter $16,846 $15,017 $16,552 1994 First Quarter $16,236 $14,544 $16,111 Second Quarter $15,926 $14,364 $15,483 Third Quarter $16,604 $14,435 $16,558 Fourth Quarter $17,066 $14,489 $16,250 1995 First Quarter $17,656 $15,210 $16,999 Second Quarter $17,946 $16,198 $18,592 Third Quarter $19,365 $16,507 $20,428 Fourth Quarter $20,245 $17,276 $20,872 1996 First Quarter $21,342 $16,872 $21,936 Second Quarter $20,821 $16,951 $23,033 Third Quarter $21,846 $17,250 $23,111 Fourth Quarter $21,234 $17,777 $24,313 1997 First Quarter $20,176 $17,624 $23,056 Second Quarter $22,245 $18,266 $26,793 Third Quarter $24,146 $18,905 $30,780 Fourth Quarter $24,028 $19,512 $29,749 1998 First Quarter $26,051 $19,809 $32,739 Second Quarter $25,319 $20,328 $31,210 Third Quarter $21,258 $21,334 $24,924 Fourth Quarter $24,532 $21,364 $28,990 1999 First Quarter $24,691 $21,107 $27,415 Second Quarter $28,987 $20,877 $31,678 Third Quarter $28,509 $20,986 $29,676 Fourth Quarter $47,741 $20,900 $35,057 2000 First Quarter $52,363 $21,458 $37,538 Second Quarter $46,498 $21,769 $36,119 [OBJECT OMITTED] THIS GRAPH, PREPARED IN ACCORDANCE WITH SEC REGULATIONS, COMPARES A $10,000 INVESTMENT IN THE FUND WITH A SIMILAR INVESTMENT IN THE UNMANAGED RUSSELL 2000 STOCK INDEX AND THE LEHMAN BROTHERS GOVERNMENT/CORPORATE BOND INDEX. RESULTS FOR THE FUND, THE RUSSELL 2000 STOCK INDEX AND LEHMAN BROTHERS GOVERNMENT/CORPORATE BOND INDEX INCLUDE THE REINVESTMENT OF DIVIDEND AND CAPITAL GAIN DISTRIBUTIONS. INVESTMENT RETURNS AND PRINCIPAL VALUE OF AN INVESTMENT WILL FLUCTUATE SO THAT AN INVESTOR'S SHARES, WHEN REDEEMED, MAY BE WORTH MORE OR LESS THAN AT THEIR ORIGINAL COST. TOTAL RETURN REPRESENTS PAST PERFORMANCE AND IS NOT PREDICTIVE OF FUTURE RESULTS. AVERAGE ANNUAL STANDARD TOTAL RETURNS FOR THE YEAR ENDED 6/30/00 - ------------------------------------------------------------------------- FUND/INDEX 1 YEAR 5 YEAR 10 YEAR - ------------------------------------------------------------------------- ARISTON CONVERTIBLE SECURITIES FUND 60.41% 20.97% 15.87% - ------------------------------------------------------------------------- LEHMAN GOV/CORP BOND INDEX 4.28% 6.09% 7.83% - ------------------------------------------------------------------------- RUSSELL 2000 STOCK INDEX 14.32% 14.20% 13.53% - ------------------------------------------------------------------------- 60.41%, 20.97% AND 15.87% ARE THE ONE, FIVE AND TEN YEAR AVERAGE ANNUAL STANDARD TOTAL RETURNS, RESPECTIVELY, FOR THE SIX MONTHS ENDED JUNE 30, 2000. INVESTMENT RETURN AND PRINCIPAL VALUE OF AN INVESTMENT WILL FLUCTUATE SO THAT AN INVESTOR'S SHARES, WHEN REDEEMED, MAY BE WORTH MORE OR LESS THAN AT ORIGINAL COST. TOTAL RETURN REPRESENTS PAST PERFORMANCE AND IS NOT PREDICTIVE OF FUTURE RESULTS. Our Fund was the top performing convertible securities fund for the one-year period according to Lipper Analytical Services, Inc. During the first six months of this year, our Fund has been buffeted by the larger trends in the financial markets. Growth stocks, in particular, continued their 1999 bullish run into March and then became gripped in a corrective, bearish retrenchment process that bottomed out in May. NASDAQ, in particular, has exhibited gut wrenching volatility. Its percentage sell-off was roughly equal to the 1987 crash period and was worse than either the 1990 or the 1998 panics. Taking a longer-term perspective of the outsized gains for NASDAQ this year, this correction can be put into some context. Such outbreaks of panic selling, while painful in the near-term, actually rejuvenate the bullish investment cycle in the long-term by purging stock market excesses. Our view is that the worst has passed, and the markets will be backing and filling for several more weeks or months. Another bullish advance beginning before year-end will follow this period. We continue to seek out and invest in dynamic profitable growth companies in ascendant industries. These companies all have unique growth franchises that are difficult, if not impossible, to duplicate and that have substantial barriers to entry for competitors. Through the use of convertible securities, we can dampen some of the downside volatility associated with growth stock investing. We appreciate your continued support and confidence, and we will continue to work hard for our Fund's investment success. We always welcome the opportunity to discuss any questions you may have about your investment. Sincerely, Richard B. Russell, President July 2000
ARISTON CONVERTIBLE SECURITIES FUND SCHEDULE OF INVESTMENTS - JUNE 30, 2000 (UNAUDITED) PRINCIPAL CONVERTIBLE BONDS - 60.6% AMOUNT VALUE BIOTECHNOLOGY - 8.8% Genentech, Inc. (Roche Holdings), 0.00%, 1/19/2015 (b)(d) 1,200,000 $ 1,092,000 Genzyme General Corp., 5.25%, 6/1/2005 595,000 974,312 ----------------- 2,066,312 ----------------- COMPUTER SERVICES - ENTERPRISE - 5.1% Veritas Software Corp., 1.856%, 8/13/2006 380,000 1,197,475 ----------------- COMPUTER SERVICES / DATA PROCESSING - 2.4% Automatic Data Processing Services, Inc., 0.00%, 2/20/2012 (b) 400,000 563,500 ----------------- COMPUTER SOFTWARE/APPLICATIONS - 4.4% Rational Software Corp., 5.00%, 2/1/2007 (d) 700,000 1,029,875 ----------------- COMPUTER SOFTWARE/INTERNET - 5.4% BEA Systems, Inc., 4.00%, 12/15/2006 (d) 800,000 1,268,000 ----------------- COMPUTER SOFTWARE/STORAGE - 3.5% i2 Technologies, Inc., 5.25%, 12/15/2006 540,000 831,600 ----------------- ELECTRONIC MANUFACTURING SERVICES - 8.0% Sanmina Corp., 4.25%, 5/01/2004 550,000 1,100,000 SCI Systems, Inc., 3.00%, 3/15/2007 800,000 789,000 ----------------- 1,889,000 ----------------- PHARMACEUTICALS - 3.9% Elan (Athena Neurosciences) PLC, 4.75%, 11/15/2004 650,000 914,063 ----------------- SEMICONDUCTORS - 10.6% Conexant Systems, Inc., 4.25%, 5/1/2006 310,000 683,550 Intel (Level One Communications) Corp., 4.00%, 9/1/2004 210,000 906,244 LSI Logic Corp., 4.00%, 2/15/2005 850,000 904,188 ----------------- 2,493,982 ----------------- ARISTON CONVERTIBLE SECURITIES FUND SCHEDULE OF INVESTMENTS - JUNE 30, 2000 - CONTINUED (UNAUDITED) PRINCIPAL AMOUNT VALUE TELECOMMUNICATIONS EQUIPMENT - 4.2% Alcatel DSC Communications Corp., 7.00%, 8/1/2004 865,000 $ 990,425 ----------------- WIRELESS NETWORKING - 4.3% Wind River Systems, Inc., 5.00%,8/1/2002 775,000 1,005,562 ----------------- TOTAL CONVERTIBLE BONDS (Cost $11,495,547) 14,249,794 ----------------- CONVERTIBLE PREFERRED STOCKS - 3.8% SHARES VALUE TELECOMMUNICATIONS SERVICES - 3.8% Global Crossing Ltd., 6.375% (Cost $1,000,000) 4,000 883,500 ----------------- COMMON STOCKS - 27.3% BIOTECHNOLOGY - 2.2% Chiron Corp. (a) 10,703 508,393 ----------------- COMPUTER EQUIPMENT STORAGE - 4.5% EMC Corp. (a) 13,838 1,050,823 ----------------- RETAIL STORES / BUILDING PRODUCTS - 2.7% Home Depot, Inc. 13,018 646,832 ----------------- SEMICONDUCTORS - 13.0% Analog Devices Corp. (a) 40,000 3,047,500 ----------------- TELECOMMUNICATIONS EQUIPMENT/WIRELESS - 4.9% Qualcomm, Inc. (a) 19,269 1,156,140 ----------------- TOTAL COMMON STOCKS (Cost $1,800,294) $ 6,409,688 ----------------- ARISTON CONVERTIBLE SECURITIES FUND SCHEDULE OF INVESTMENTS - JUNE 30, 2000 - CONTINUED (UNAUDITED) PRINCIPAL AMOUNT VALUE Money Market Securities - 7.7% Firstar Treasury Fund, 5.44% (c) (Cost $1,814,782) 1,814,782 $ 1,814,782 ----------------- TOTAL INVESTMENT - 99.4% (Cost $16,110,623) 23,357,764 ----------------- OTHER ASSETS LESS LIABILITIES - 0.6% 129,682 ----------------- TOTAL NET ASSETS - 100.0% $ 23,487,446 ================= (a) Non-income producing (b) Zero Coupon Bond (c) Variable rate security; the coupon rate shown represents the rate at June 30, 2000. (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 June 30, 2000 the value of these securities amounted to $3,389,875 or 14.40% of net assets.
ARISTON CONVERTIBLE SECURITIES FUND JUNE 30, 2000 STATEMENT OF ASSETS & LIABILITIES (UNAUDITED) ASSETS Investment in securities (cost $16,110,623) $ 23,357,764 Dividends receivable 17,539 Interest receivable 110,643 Receivable for fund shares sold 130,050 ------------------ TOTAL ASSETS 23,615,996 LIABILITIES Payable to custodian bank 33,895 Accrued investment advisory fee 45,148 Payable for fund shares redeemed 49,388 Other payables and accrued expenses 119 ----------------- TOTAL LIABILITIES 128,550 ------------------ NET ASSETS $ 23,487,446 ================== Net Assets consist of: Paid in capital 15,949,014 Accumulated net investment loss (193,739) Accumulated net realized gain on investments 485,030 Net unrealized appreciation on investments 7,247,141 ------------------ NET ASSETS, for 964,710 shares $ 23,487,446 ================== NET ASSET VALUE Net Assets Offering price and redemption price per share ($23,487,466/ 964,710) $ 24.35 ==================
ARISTON CONVERTIBLE SECURITIES FUND STATEMENT OF OPERATIONS FOR THE SIX MONTHS ENDED JUNE 30, 2000 (UNAUDITED) INVESTMENT INCOME Dividend income $ 53,441 Accretion of discount 16,360 Interest income 180,020 Amortization of premium (209,746) --------------- TOTAL INCOME 40,075 EXPENSES Investment advisory fee $ 232,046 Trustee Fees 1,768 ------------------ Total operating expenses 233,814 --------------- NET INVESTMENT LOSS (193,739) --------------- REALIZED & UNREALIZED GAIN (LOSS) Net realized gain on investment securities 617,857 Change in net unrealized appreciation (depreciation) on investment securities (1,773,506) ------------------ Net loss on investment securities (1,155,649) --------------- NET DECREASE IN NET ASSETS RESULTING FROM OPERATIONS $(1,349,388) ===============
ARISTON CONVERTIBLE SECURITIES FUND STATEMENT OF CHANGES IN NET ASSETS SIX MONTHS YEAR ENDED ENDED JUNE 30, 2000 DECEMBER 31, (UNAUDITED) 1999 ------------------ ----------------- Increase (Decrease) in Net Assets OPERATIONS Net investment loss $ (193,739) $ (58,599) Net realized gain on investment securities 617,857 2,712,344 Change in net unrealized appreciation (depreciation) (1,773,506) 5,198,325 ------------------ ----------------- Net increase (decrease) in net assets resulting from operations (1,349,388) 7,852,070 DISTRIBUTIONS TO SHAREHOLDERS From net realized gain (172) (2,573,485) ------------------ ----------------- SHARE TRANSACTIONS Net proceeds from sale of shares 14,131,053 3,785,062 Shares issued in reinvestment of distributions 172 2,474,563 Shares redeemed (5,254,139) (5,963,596) ------------------ ----------------- NET INCREASE IN NET ASSETS RESULTING FROM SHARE TRANSACTIONS 8,877,086 296,029 ------------------ ----------------- TOTAL INCREASE IN NET ASSETS 7,527,526 5,574,614 Net Assets Beginning of period 15,959,920 10,385,306 ------------------ ----------------- End of period [including accumulated undistributed net investment income (loss) of $(193,739) and $0, respectively] $ 23,487,446 $ 15,959,920 ================== =================
ARISTON CONVERTIBLE SECURITIES FUND FINANCIAL HIGHLIGHTS SIX MONTHS ENDED YEARS ENDED DECEMBER 31, JUNE 30, 2000 ---------- --------- --------- -------- -------- UNAUDITED) (A) 1999 (A) 1998 1997 1996 1995 --------------- ---------- --------- --------- -------- -------- Selected Per Share Data Net asset value, beginning of period $ 25.00 $ 15.36 $ 15.08 $ 13.66 $ 13.66 $ 11.84 ---------- ---------- --------- --------- -------- -------- Income from investment operations: Net investment income (loss) (0.24) (0.11) 0.00 0.11 0.11 0.15 Net realized and unrealized gain (loss) on investments (0.41) 14.49 0.31 1.68 0.55 2.04 ---------- ---------- --------- ---------- -------- --------- Total from investment operations (0.65) 14.38 0.31 1.79 0.66 2.19 ---------- ---------- --------- ---------- -------- --------- Less distributions: Distributions from net investment income 0.00 0.00 0.00 (0.11) (0.11) (0.15) Distributions from net realized gains 0.00 (4.74) (0.03) (0.26) (0.55) (0.22) ---------- ---------- --------- ---------- -------- --------- Total distributions 0.00 (4.74) (0.03) (0.37) (0.66) (0.37) ---------- ---------- --------- ---------- -------- --------- Net asset value, end of period $ 24.35 $ 25.00 $ 15.36 $ 15.08 $ 13.66 $ 13.66 ========== ========== ========= ========== ======== ========= TOTAL RETURN (2.60)%(b) 94.61% 2.09% 13.16% 4.89% 18.63% RATIOS AND SUPPLEMENTAL DATA Net assets, end of period (000) $23,487 $15,960 $10,385 $10,345 $11,208 $11,641 Ratio of expenses to average net assets 2.25% (c) 2.10% 2.32% 2.38% 2.39% 2.52% Ratio of net investment income to average net assets (1.86)%(c) (0.59)% (0.13)% 0.79% 0.77% 1.24% Portfolio turnover rate 31.41% (c) 32.89% 27.79% 30.47% 18.45% 11.23% (a) See note 1 (b) For a period of less than a full year, the total return is not annualized. (c) Annualized
ARISTON INTERNET CONVERTIBLE FUND SCHEDULE OF INVESTMENTS - JUNE 30, 2000 (UNAUDITED) PRINCIPAL CONVERTIBLE BONDS - 81.0% AMOUNT VALUE COMMERCIAL SERVICES - 10.0% Checkfree Holdings Corp., 6.50%, 12/01/2006 (c) 30,000 $ 28,950 Getty Images, Inc., 5.00%, 03/15/2007 (c) 40,000 33,850 --------------- 62,800 --------------- COMPUTER SOFTWARE / APPLICATIONS - 5.8% Rational Software Corp., 5.00%, 02/01/2007 (c) 25,000 36,781 --------------- COMPUTER SOFTWARE / INTERNET - 8.7% BEA Systems, Inc., 4.00%, 12/15/2006 (c) 20,000 31,700 i2 Technologies, Inc., 5.25%, 12/15/2006 15,000 23,100 --------------- 54,800 --------------- COMPUTER SOFTWARE / STORAGE - 5.0% Veritas Software Corp., 1.856%, 08/13/2006 10,000 31,513 --------------- ELECTRONIC MANUFACTURING SERVICES - 6.4% Sanmina Corp., 4.25%, 05/01/2004 20,000 40,000 --------------- NETWORKING EQUIPMENT / BROADBAND - 11.7% Juniper Networks, Inc., 4.75%, 03/15/2007 30,000 33,375 Redback Networks, Inc., 5.00%, 04/01/2007 (c) 35,000 39,944 --------------- 73,319 --------------- SEMICONDUCTORS - 24.7% Burr Brown Corp., 4.25%, 02/15/2007 (c) 15,000 25,481 Conexant Systems, Inc., 4.25%, 05/01/2006 10,000 22,050 Intel Corp. (Level One Communications), 4.00%, 09/01/2004 10,000 43,155 TriQuint Semiconductor, Inc., 4.00%, 03/01/2007 (c) 35,000 32,112 Vitesse Semiconductor Corp., 4.00%, 03/15/2005 (c) 35,000 32,725 --------------- 155,523 --------------- TELECOMMUNICATIONS EQUIPMENT - 4.6% Alcatel ADR (DSC Communications Corp.), 7.00%, 08/01/2004 25,000 28,625 --------------- WIRELESS NETWORKING - 4.1% Wind River Systems, Inc., 5.00%, 08/01/2002 20,000 25,950 --------------- TOTAL CONVERTIBLE BONDS (Cost $493,386) 509,311 --------------- ARISTON INTERNET CONVERTIBLE FUND SCHEDULE OF INVESTMENTS - JUNE 30, 2000 (UNAUDITED) - CONTINUED CONVERTIBLE PREFERRED STOCKS - 9.0% SHARES VALUE INTERNET SERVICE PROVIDER - 4.6% PSINet, Inc., Series C 600 $ 29,100 --------------- TELECOMMUNICATIONS SERVICES - 4.4% Global Crossing Ltd., 6.75% 125 27,610 --------------- TOTAL CONVERTIBLE PREFERRED STOCKS (Cost $63,575) 56,710 --------------- COMMON STOCKS - 8.6% COMPUTER EQUIPMENT / STORAGE - 8.6% EMC Corp. (a) (Cost $50,349) 714 54,220 --------------- PRINCIPAL AMOUNT VALUE Money Market Securities - 0.7% Firstar Treasury Fund, 5.44% (b) (Cost $4,300) 4,300 4,300 --------------- TOTAL INVESTMENTS - 99.3% (Cost $611,610) 624,541 --------------- OTHER ASSETS LESS LIABILITIES - 0.7% 4,325 --------------- TOTAL NET ASSETS - 100.0% $ 628,866 =============== (a) Non-income producing (b) Variable rate security; the coupon rate shown represents the rate at June 30, 2000. (c) 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 June 30, 2000, the value of these securities amounted to $261,543 or 41.6% of net assets.
ARISTON INTERNET CONVERTIBLE FUND JUNE 30, 2000 STATEMENT OF ASSETS & LIABILITIES (UNAUDITED) ASSETS Investment in securities (cost $611,610) $ 624,541 Interest receivable 5,632 ------------------ TOTAL ASSETS 630,173 LIABILITIES Accrued investment advisory fee payable 1,049 Accrued 12b-1 fees Premier Shares (see note 3) 46 Other payables and accrued expenses 28 Payable to custodian bank 184 ----------------- TOTAL LIABILITIES 1,307 ------------------ NET ASSETS $ 628,866 ================== Net Assets consist of: Paid in capital 644,859 Accumulated undistributed net investment loss (2,416) Accumulated undistributed net realized loss on investments (26,508) Net unrealized appreciation on investments 12,931 ------------------ NET ASSETS $ 628,866 ================== NET ASSET VALUE ELITE SHARES Net Asset Value and Offering price and redemption price per share ($533,105 / 56,205 ) $ 9.49 ================== PREMIER SHARES Net Asset Value and Redemption price per share ($95,761 / 10,133) $ 9.45 ================== Maximum offering price per share ($9.45 / 0.96) $ 9.84 ==================
ARISTON INTERNET CONVERTIBLE FUND STATEMENT OF OPERATIONS FOR THE PERIOD MAY 1, 2000 (COMMENCEMENT OF OPERATIONS) THROUGH JUNE 30, 2000 (UNAUDITED) INVESTMENT INCOME Dividend Income $ 533 Accretion of Discount 363 Amortization of Premium (3,860) Interest Income 2,423 --------------- TOTAL INCOME (541) EXPENSES Investment advisory fee $ 1,829 12b-1 fees Premier Shares (see note 3) 46 ------------------ Total operating expenses 1,875 --------------- NET INVESTMENT LOSS (2,416) --------------- REALIZED & UNREALIZED GAIN (LOSS) Net realized loss on investment securities (26,508) Change in net unrealized appreciation (depreciation) on investment securities 12,931 ------------------ Net loss on investment securities (13,577) --------------- NET DECREASE IN NET ASSETS RESULTING FROM OPERATIONS $ (15,993) ===============
ARISTON INTERNET CONVERTIBLE FUND STATEMENT OF CHANGES IN NET ASSETS PERIOD ENDED JUNE 30, 2000 (UNAUDITED) (A) ----------------- Increase (Decrease) in Net Assets OPERATIONS Net investment loss $ (2,416) Net realized loss on investment securities (26,508) Change in net unrealized appreciation 12,931 ----------------- Net decrease in net assets resulting from operations (15,993) DISTRIBUTIONS TO SHAREHOLDERS From net investment income: Elite Shares 0 Premier Shares 0 From net realized gain: Elite Shares 0 Premier Shares 0 ----------------- Total distributions 0 ----------------- SHARE TRANSACTIONS Net proceeds from sale of shares: Elite Shares 546,293 Premier Shares 98,566 Shares issued in reinvestment of distributions: Elite Shares 0 Premier Shares 0 Shares redeemed: Elite Shares 0 Premier Shares 0 ----------------- NET INCREASE IN NET ASSETS RESULTING FROM SHARE TRANSACTIONS 644,859 ----------------- TOTAL INCREASE IN NET ASSETS 628,866 Net Assets Beginning of period 0 ----------------- End of period [including accumulated undistributed net investment loss of $2,416] $ 628,866 ================= (a) May 1, 2000 (commencement of operations) through June 30, 2000
ARISTON INTERNET CONVERTIBLE FUND FINANCIAL HIGHLIGHTS ELITE SHARES PERIOD ENDED JUNE 30, 2000 (UNAUDITED) (A) -------------- SELECTED PER SHARE DATA Net asset value, beginning of period $ 10.00 -------------- Income from investment operations: Net investment loss (0.05) Net realized and unrealized gain (loss) on investments (0.46) -------------- Total from investment operations (0.51) -------------- Less distributions: Distributions from net investment income 0.00 Distributions from net realized gains 0.00 -------------- Total distributions 0.00 -------------- Net asset value, end of period $ 9.49 ============== TOTAL RETURN (5.10)(b) RATIOS AND SUPPLEMENTAL DATA Net assets, end of period (000) $533 Ratio of expenses to average net assets 2.25% (c) Ratio of net investment income to average net assets (2.93)%(c) Portfolio turnover rate 74.49% (c) (a) May 1, 2000 (commencement of operations) through June 30, 2000 (b) For a period of less than a full year, the total return is not annualized. (c) Annualized
ARISTON INTERNET CONVERTIBLE FUND FINANCIAL HIGHLIGHTS PREMIER SHARES PERIOD ENDED JUNE 30, 2000 (UNAUDITED) (A) -------------- SELECTED PER SHARE DATA Net asset value, beginning of period $ 10.00 -------------- Income from investment operations: Net investment loss (0.04) Net realized and unrealized gain (loss) on investments (0.51) -------------- Total from investment operations (0.55) -------------- Less distributions: Distributions from net investment income 0.00 Distributions from net realized gains 0.00 -------------- Total distributions 0.00 -------------- Net asset value, end of period $ 9.45 ============== TOTAL RETURN (5.50)%(b) RATIOS AND SUPPLEMENTAL DATA Net assets, end of period (000) $96 Ratio of expenses to average net assets 2.95% (c) Ratio of net investment income to average net assets (2.61)%(c) Portfolio turnover rate 74.49% (c) (a) May 1, 2000 (commencement of operations) through June 30, 2000 (b) For a period of less than a full year, the total return is not annualized. (c) Annualized
ARISTON FUNDS NOTES TO FINANCIAL STATEMENTS JUNE 30, 2000 (UNAUDITED) NOTE 1. ORGANIZATION Ariston Convertible Securities Fund (the "Convertible Securities Fund") and Ariston Internet Convertible Fund (the "Internet Convertible Fund"), collectively the "Funds", were organized as diversified series of the AmeriPrime Funds (the "Trust") on February 24, 1999 and February 29, 2000, respectively. On April 30, 1999, the Convertible Securities Fund acquired the assets and assumed the liabilities of Lexington Convertible Securities Fund (the "Predecessor Fund") in a tax-free reorganization. The Predecessor Fund commenced operations on January 20, 1988. The Internet Convertible Fund commenced operations on May 1, 2000. The Trust is established under the laws of Ohio by an Agreement and Declaration of Trust dated August 8, 1995 (the "Trust Agreement"). The investment objective of each Fund is total return. The Trust Agreement permits the Board of Trustees (the "Board") 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 each Fund in the preparation of its financial statements. SECURITIES VALUATIONS - Common stocks, which are traded on any exchange, are valued at the last quoted sale price. Lacking a last sale price, a security is valued at the mean between the last bid and ask price except when, in the Advisor's opinion, the mean price does not accurately reflect the current value of the security. When market quotations are not readily available, when the Advisor determines the mean 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, subject to review and oversight of the Board of the Trust. All other securities generally are valued at the mean between the last bid and ask price, 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. Convertible securities are valued at the greater of the value determined as described in the preceding sentence and the value of the shares of common stock into which the securities are convertible (determined as described in the preceding paragraph). When market quotations are not readily available, 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 and oversight 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. 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 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 - Each Fund intends to distribute substantially all of its net investment income as dividends to its shareholders on a quarterly basis. Each Fund intends to distribute its net long-term capital gains and its net short-term capital gains at least once a year. ARISTON FUNDS NOTES TO FINANCIAL STATEMENTS JUNE 30, 2000 (UNAUDITED) - CONTINUED NOTE 2. SIGNIFICANT ACCOUNTING POLICIES - CONTINUED SECURITIES TRANSACTIONS & INVESTMENT INCOME - 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. During market conditions which cause the underlying common stocks of a convertible security to greatly increase in value, the amortization of premium can exceed interest income and the accretion of discount at levels that may cause the Funds to recognize negative income. NOTE 3. FEES AND OTHER TRANSACTIONS WITH AFFILIATES The Funds retain Ariston Capital Management Corporation (the "Advisor") to manage each Fund's investments. The Advisor was founded in 1977. Richard B. Russell, President and controlling shareholder of the Advisor, is primarily responsible for the day-to-day management of each Fund's portfolio. Under the terms of each Fund's management agreement (the "Agreements"), the Advisor manages the Fund's investments subject to approval of the Board and pays all of the expenses of the Fund except brokerage commissions, taxes, borrowing costs (such as (a) interest and (b) dividend expenses on securities sold short), 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 Convertible Securities Fund is obligated to pay the Advisor a fee computed and accrued daily and paid monthly at an annual rate of 2.25% of the average daily net assets of the Fund, less the amount of its 12b-1 expenses and fees and expenses of non-interested person trustees. The Internet Convertible Fund is obligated to pay the Advisor a fee computed and accrued daily and paid monthly at an annual rate of 2.25% of the average daily net assets of the Fund, less the amount of its fees and expenses of non-interested person trustees. 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 Advisor. For the six months ended June 30, 2000, the Advisor received fees of $232,046 from the Convertible Securities Fund. For the period May 1, 2000 (commencement of operations) through June 30, 2000, the Advisor received fees of $1,829 from the Internet Convertible Fund. Each Fund has adopted a Distribution Plan pursuant to Rule 12b-1 under the 1940 Act (each, a "Plan"). The Plan for the Convertible Securities Fund permits the Fund to pay directly, or reimburse the Advisor or Distributor, for distribution expenses in an amount not to exceed 0.25% of the average daily net assets of the Fund. Expenses of the Convertible Securities Fund will not be affected by the 12b-1 Plan because the Fund's Advisor does not intend to activate the Plan through May 1, 2001. The Plan for the Internet Convertible Fund, which relates only to the Premier class of shares, permits the Fund to pay directly, or reimburse the Advisor or Distributor, for distribution expenses in an amount not to exceed 0.70% of the average daily net assets of the Premier class of shares. For the period May 1, 2000 (commencement of operations) through June 30, 2000, the Premier shares of the Internet Convertible Fund paid $46 in 12b-1 fees incurred by the Fund. ARISTON FUNDS NOTES TO FINANCIAL STATEMENTS JUNE 30, 2000 (UNAUDITED) - CONTINUED NOTE 3. FEES AND OTHER TRANSACTIONS WITH AFFILIATES - CONTINUED Each Fund retains AmeriPrime Financial Services, Inc. (the "Administrator"), a wholly owned subsidiary of Unified Financial Services, Inc., to manage each Fund's business affairs and provide each Fund with administrative services, including all regulatory reporting and necessary office equipment and personnel. The Administrator receives a monthly fee from the Advisor equal to an annual rate of 0.10% of each Fund's assets under $50 million, 0.075% of each Fund's assets from $50 million to $100 million, and 0.050% of each Fund's assets over $100 million (subject to a minimum fee of $2,500 per month for the Convertible Securities Fund, and $1,666 for the Internet Convertible Fund). For the six months ended June 30, 2000, the Administrator received fees of $15,000 from the Advisor for administrative services provided to the Convertible Securities Fund. For the period May 1, 2000 (commencement of operations) through June 30, 2000, the Administrator received fees of $3,333 from the Advisor for administrative services provided to the Internet Convertible Fund. Each Fund retains Unified Fund Services, Inc. ("Unified"), a wholly owned subsidiary of Unified Financial Services, Inc., to act as each Fund's transfer agent and to provide each Fund with fund accounting services. For its services as transfer agent, Unified receives a monthly fee from the Advisor of $1.20 per shareholder (subject to a minimum monthly fee of $750). For the six months ended June 30, 2000, Unified received fees of $9,492 from the Advisor for transfer agent services provided to the Convertible Securities Fund. For the period May 1, 2000 (commencement of operations) through June 30, 2000, Unified received fees of $3,281 from the Advisor for transfer agent services provided to the Internet Convertible Fund. For its services as fund accountant, Unified receives an annual fee from the Advisor equal to 0.0275% of each Fund's assets up to $100 million, 0.0250% of each Fund's assets from $100 million to $300 million, and 0.0200% of each Fund's assets over $300 million (subject to various monthly minimum fees, the maximum being $2,000 per month for assets of $20 million to $100 million). For the six months ended June 30, 2000, Unified received fees of $11,500 from the Advisor for fund accounting services provided to the Convertible Securities Fund. For the period May 1, 2000 (commencement of operations) through June 30, 2000, Unified received fees of $2,950 from the Advisor for fund accounting services provided to the Internet Convertible Fund. The Fund retains AmeriPrime Financial Securities, Inc. ("the Distributor"), a wholly owned subsidiary of Unified Financial Services, Inc., to act as the principal distributor of each Fund's shares. There were no payments made to the Distributor for the six months ended June 30, 2000 for the Convertible Securities Fund. There were no payments made to the Distributor for the period May 1, 2000 (commencement of operations) through June 30, 2000 for the Internet Convertible Fund. Certain members of management of the Administrator and the Distributor are also members of management of the Trust. NOTE 4. SHARE TRANSACTIONS CONVERTIBLE SECURITIES FUND. As of June 30, 2000, there were an unlimited number of authorized shares for the Fund. Paid in capital at June 30, 2000 was $15,949,014. ARISTON FUNDS NOTES TO FINANCIAL STATEMENTS JUNE 30, 2000 (UNAUDITED) - CONTINUED NOTE 4. SHARE TRANSACTIONS - CONTINUED Transactions in shares were as follows: SIX MONTHS ENDED YEAR ENDED JUNE 30, 2000 DECEMBER 31, 1999 (UNAUDITED) SHARES DOLLARS SHARES DOLLARS Shares sold 531,668 $14,131,053 192,879 $3,785,062 Shares issued in reinvestment of distributions 7 172 102,086 2,474,563 Shares redeemed (205,487) (5,254,139) (332,616) (5,963,596) --------- ------------ ----------- ----------- 326,188 $8,877,086 (37,651) $296,029 ========= ============ =========== ===========
INTERNET CONVERTIBLE FUND (ELITE SHARES). As of June 30, 2000, there were an unlimited number of authorized shares for the Fund. Paid in capital at June 30, 2000 was $546,293. Transactions in shares were as follows: FOR THE PERIOD MAY 1, 2000 (COMMENCEMENT OF OPERATIONS) THROUGH JUNE 30, 2000 (UNAUDITED) SHARES DOLLARS Shares sold 56,205 $546,293 Shares issued in reinvestment of distributions 0 0 Shares redeemed 0 0 --------- --------- 56,205 $546,293 ========= ========= ARISTON FUNDS NOTES TO FINANCIAL STATEMENTS JUNE 30, 2000 (UNAUDITED) - CONTINUED NOTE 4. SHARE TRANSACTIONS - CONTINUED INTERNET CONVERTIBLE FUND (PREMIER SHARES). As of June 30, 2000, there were an unlimited number of authorized shares for the Fund. Paid in capital at June 30, 2000 was $98,566. Transactions in shares were as follows: FOR THE PERIOD MAY 1, 2000 (COMMENCEMENT OF OPERATIONS) THROUGH JUNE 30, 2000 (UNAUDITED) SHARES DOLLARS Shares sold 10,133 $98,566 Shares issued in reinvestment of distributions 0 0 Shares redeemed 0 0 ---------- ---------- 10,133 $98,566 ========== ========== NOTE 5. INVESTMENTS CONVERTIBLE SECURITIES FUND. For the six months ended June 30, 2000, purchases and sales of investment securities, other than short-term investments, aggregated $10,544,957 and $3,127,078 respectively. As of June 30, 2000, the gross unrealized appreciation for all securities totaled $7,639,497 and the gross unrealized depreciation for all securities totaled $392,356 for a net unrealized appreciation of $7,247,141. The aggregate cost of securities for federal income tax purposes at June 30, 2000 was $16,110,623. INTERNET CONVERTIBLE FUND. For the period May 1, 2000 (commencement of operations) through June 30, 2000, purchases and sales of investment securities, other than short-term investments, aggregated $680,916 and $43,601, respectively. As of June 30, 2000, the gross unrealized appreciation for all securities totaled $34, 942 and the gross unrealized depreciation for all securities totaled $22,011 for a net unrealized appreciation of $12,931. The aggregate cost of securities for federal income tax purposes at June 30, 2000 was $611,610. NOTE 6. 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. ARISTON FUNDS NOTES TO FINANCIAL STATEMENTS JUNE 30, 2000 (UNAUDITED) - CONTINUED NOTE 7. 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 each Fund. 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 June 30, 2000, Charles Schwab & Co., Inc. beneficially owned, in aggregate, more than 40% of the Convertible Securities Fund. As of June 30, 2000, Ariston Capital Management Corp. beneficially owned, in aggregate, more than 35% of the Internet Convertible Fund Elite shares. As of June 30, 2000, Investec Ernst & Co. beneficially owned, in aggregate, more than 99% of the Internet Convertible Fund Premier shares. -----END PRIVACY-ENHANCED MESSAGE-----