-----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, JTQ9BGZnMMoCfkFUu6J+kdVpKr1kmJJBRSpWPFASX9HFoFxeERY5rxGdq8qAg9YT mnaqum/SJsmOkD3Ctv608w== 0001000579-00-000108.txt : 20001204 0001000579-00-000108.hdr.sgml : 20001204 ACCESSION NUMBER: 0001000579-00-000108 CONFORMED SUBMISSION TYPE: N-30D/A PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 20000430 FILED AS OF DATE: 20001201 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/A SEC ACT: SEC FILE NUMBER: 811-09096 FILM NUMBER: 781960 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/A 1 0001.txt AMERIPRIME FUNDS FLORIDA STREET FUNDS ADVISOR'S LETTER TO SHAREHOLDERS DEAR FELLOW SHAREHOLDERS, Federal Reserve Chairman Alan Greenspan and his colleagues are determined to economy's breakneck (that is, inflationary) speed before a recessionary accident becomes unavoidable. Over the past year, the Federal Open Market Committee has raised the Fed funds rate buy 175 basis points, and other short term rates, including the bank prime rate, have risen by a similar amount. The Fed's tightening moves should keep the economy on a path to slower economic growth and reduced inflationary pressure in the latter half of this year. During the first months of this calendar year, the various monetary aggregates have slowed to growth rates between 5.5% and 7.0% on an annual basis. The consequences of this monetary restriction have been felt in the financial markets in March and April, but not much yet in the real economy. The old adage is that monetary policy works with long and variable lags. Empirical studies show that policy does not usually have an impact until two quarters after the start of the tightening cycle. Given the offsetting impact of the Nasdaq's rally last year, it is reasonable to date the beginning of this tightening cycle in February of this year, when the Fed pushed rates above their 1998 highs. If so, this summer we should see the first evidence that policy is working. IN SUMMARY The disparity in returns between the stock and bond markets has caused many investors to question the value of diversification. But abandoning a laggard asset class to chase a winning one is a risky strategy. The return disparity has not shaken our belief that investors should select and stick with a mixture of stock, bond and money market funds appropriate to their investment time horizon, goals, and risk tolerance. Investors should keep their eyes on the horizon and not let interim turbulence sway them from their course. Walter A. Morales, CFA PRESIDENT AND CHIEF INVESTMENT OFFICE COMMONWEALTH ADVISORS, INC. FLORIDA STREET BOND FUND SEMI-ANNUAL REPORT TO SHAREHOLDERS DEAR FELLOW SHAREHOLDERS, The six months ended April 30, 2000 was marked by a sharp rise in interest rates and falling bond prices as surprisingly strong economic growth sparked fears of higher inflation. In this difficult environment for bond investors, the Florida Street Bond Fund posted a positive total return of 6.45%. The Merrill Lynch High Yield Index returned 0.25% while the Bloomberg/EFFAS 7-10 Year U.S. Government Bond Index managed a small positive return of 1.42%. The period was marked by a rising inflation rate which fueled fears that the Federal Reserve would have to maintain it's credit tightening stance for longer than had been anticipated. The bond market reacted to this scenario by sending Treasury rates up across short and intermediate maturities. Corporate spreads widened significantly to compensate for the extra risk bondholders perceived in the market. At the end of the Fund's prior fiscal year on October 31, 1999, the five-year U.S. Treasury yield stood at 5.94%. By April 30, 2000 it had risen 60 basis points to 6.54%. The increases were slightly greater at shorter maturities but less so beyond five years. - -------------------------------------------------------------------------------- Performance Table Periods Ended April 30, 2000 Since Avg. Ann 6 Months 1 Year Inception Since Inception Florida St. Bond Fund 6.45% 1.24% 6.20% 2.22% 7-10 Year US Govt Index 1.42% -0.35% 15.13% 5.27% Merrill Lynch H.Y. Bond Index 0.25% -2.76% 9.57% 3.39% - -------------------------------------------------------------------------------- Florida St ML Hi Yld US Govt Growth Fd Index 7-10 Yr 08/04/97 10,000 10,000 10,000 08/31/97 9,970 10,014 9,940 09/30/97 10,100 10,194 10,137 10/31/97 10,090 10,246 10,340 11/28/97 10,080 10,338 10,370 12/31/97 10,175 10,419 10,513 01/31/98 10,440 10,607 10,727 02/28/98 10,367 10,668 10,681 03/31/98 10,512 10,777 10,710 04/30/98 10,584 10,818 10,753 05/31/98 10,570 10,949 10,860 06/30/98 10,594 10,950 10,984 07/31/98 10,767 11,058 11,015 08/31/98 10,251 10,388 11,442 09/30/98 10,181 10,507 11,929 10/31/98 10,123 10,348 11,842 11/30/98 10,566 10,886 11,772 12/31/98 10,089 10,866 11,846 01/31/99 10,238 11,013 11,889 02/28/99 10,305 10,938 11,457 03/31/99 10,456 11,065 11,524 04/30/99 10,489 11,268 11,554 05/31/99 10,219 11,164 11,346 06/30/99 10,415 11,137 11,321 07/31/99 10,312 11,152 11,266 08/31/99 10,337 11,034 11,258 09/30/99 10,258 10,990 11,377 10/31/99 9,976 10,930 11,353 11/30/99 10,209 11,072 11,316 12/31/99 10,627 11,139 11,204 01/31/00 10,513 11,097 11,136 02/29/00 10,757 11,120 11,257 03/31/00 10,483 10,957 11,587 04/30/00 10,620 10,957 11,513 The chart shows the value of a hypothetical initial investment of $10,000 in the Fund, the Merrill Lynch High Yield Bond Index and the Bloomberg/EFFAS 7-10 Year U.S. Government Bond Index. On August 4, 1997 and held through April 30, 2000. The Merrill Lynch High Yield Bond Index is a widely recognized unmanaged index of bonds of lower credit quality. The Bloomberg/EFFAS 7-10 Year U.S. Government Bond Index is an unmanaged index of intermediate term U.S. Government securities. Performance figures include the change in value of the bonds in the indices, reinvestment of interest, 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. Investors should remember that the high yield bond market is a hybrid market. Under some conditions, these securities behave like the stock market, especially small capitalization stocks. At other times, they behave like other bonds. The Fund experienced a negative trend in its net asset value per share (NAV) during the six months, however, the high dividend generated by the portfolio of securities allowed the total return to stay relatively high. The Fund's advisor has chosen to invest in securities that, on average, are of lower average quality than the benchmark index. This allows the Fund to generate a higher level of cashflow due to the greater current yield these securities possess. The Advisor believes that interest rate cycles cancel themselves out over longer time periods, and sound analysis and proper diversification will allow the Fund to generate above-average returns to shareholders. Other factors are encouraging us view the current environment as a good opportunity to invest in high yield bonds: 1.When evaluating the Fund's holdings, the downside risk seems small compared to the opportunities for gains. 2.The erosion in prices has created great value in these securities. Yield spreads over Treasuries are at high levels and will eventually narrow. When investors begin to focus on this, as they inevitably will, prices should recover considerably. 3. We believe most of the negatives such as the Federal Reserve's policy and the risk of defaults in a slower economy has already been reflected in current prices. The current risk/reward tradeoff looks attractive. As fiscal 2000 progresses we expect the Florida Street Bond Fund to behave as one would expect in a rising rate environment. Continued pressure could be placed on NAV, but the high yields of the Fund's holdings should allow the it to generate a positive total return and perform better than the high quality bond market. Once the Federal Reserve returns to a neutral stance, the opportunity for healthy gains is significant. Thank you for your support. Sincerely, Walter A. Morales, CFA Portfolio Manager FELLOW SHAREHOLDERS, During the six months ended April 30, 2000 the Florida Street Growth Fund achieved exceptional returns, increasing net asset value per share by 53.92%. This compares with a 21.25% return for the S&P 400 Midcap Index and a 17.25% return for the S&P 600 Small cap Index. Both indexes surpassed the result of the S&P 500, which gained 7.89% for the six months. The Fund's twelve-month return was also strong. For the full fiscal year, net asset value per share (NAV) increased 55.58% compared to the S&P Midcap's 23.51% return and the S&P Smallcap's 20.50% gain. What accounted for the Fund's strong gains in fiscal 1999-2000? The stock market continued to be led by the same economic sectors that have led for the past few years - technology and telecommunications, but an important shift occurred. Investors finally showed an interest in smaller capitalization stocks in those sectors. Since the Florida Street Growth Fund is a multi-cap fund with a focus on mid and small cap stocks, the shift in focus played into our style. We were able to exploit a few powerful trends in these sectors to the benefit of our shareholders. Florida Street S&P 400 S&P 600 Growth Fund Mid-Cap Small-Cap 08/06/97 $10,000 $10,000 $10,000 08/31/97 $9,910 $9,848 $10,240 09/30/97 $10,550 $10,414 $10,917 10/31/97 $10,190 $9,961 $10,446 11/28/97 $10,120 $10,108 $10,337 12/31/97 $10,092 $10,500 $10,579 01/31/98 $9,941 $10,300 $10,373 02/27/98 $10,705 $11,153 $11,317 03/31/98 $11,217 $11,655 $11,749 04/30/98 $11,367 $11,868 $11,818 05/31/98 $10,805 $11,334 $11,192 06/30/98 $10,715 $11,405 $11,224 07/31/98 $10,202 $10,963 $10,366 08/31/98 $8,114 $8,924 $8,368 09/30/98 $8,636 $9,756 $8,879 10/31/98 $9,198 $10,627 $9,291 11/30/98 $9,550 $11,157 $9,813 12/31/98 $10,379 $12,504 $10,439 01/31/99 $10,671 $12,016 $10,307 02/28/99 $9,897 $11,388 $9,379 03/31/99 $9,866 $11,706 $9,500 04/30/99 $10,731 $12,629 $10,127 05/31/99 $10,621 $12,685 $10,374 06/30/99 $11,516 $13,364 $10,964 07/31/99 $11,435 $13,080 $10,868 08/31/99 $10,651 $12,631 $10,390 09/30/99 $10,631 $12,242 $10,434 10/31/99 $11,043 $12,865 $10,408 11/30/99 $12,455 $13,540 $10,848 12/31/99 $14,440 $14,344 $11,734 01/31/00 $14,503 $13,940 $11,370 02/29/00 $18,586 $14,916 $12,893 03/31/00 $18,737 $16,163 $12,416 04/30/00 $16,695 $15,598 $12,203 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 April 30, 2000. The S&P 400 Mid Cap Index is a widely recognized unmanaged index of mid-sized U.S. domestic common stocks. The S&P 600 Small Cap Index is a widely recognized unmanaged index of small U.S. domestic common stocks. Performance figures include the change in value of the stocks in the indices, the reinvestment of dividends, and are not annualized for periods of less than one year. The indices 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. - -------------------------------------------------------------------------------- PERFORMANCE TABLE Periods Ended April 30, 2000 SINCE AVG. ANN 6 MONTHS 1 YEAR INCEPTION SINCE INCEPTION Florida St. Growth Fund 57.05% 55.58% 66.95% 20.59% S&P 400 Mid Cap Index 21.25% 23.51% 55.98% 17.64% S&P 600 Small Cap Index 17.25% 20.50% 22.03% 7.55% - -------------------------------------------------------------------------------- Note: Past performance does not predict future results. The most important trend that your management played is the build-out of optical networks that is occurring as a result of advances in fiber optic communications. The demand for more bandwidth due to the growth of data traffic through the telecommunications system is driving this build-out. Companies that build essential elements of these new networks are experiencing high rates of growth. We purchased or owned shares of several companies involved in this industry including Newport Corp., Dycom Industries, Broadcom Corp., II-VI Inc. and Ciena Corp. The shares of these companies appreciated greatly during the last six months, helping to propel the Fund's gain. Also contributing to the strong performance were International Rectifier and Ballard Power, companies involved in electrical power management. Other contributors include Rare Medium, Oracle Corp. and Qualcomm Inc. Rare Medium is a web site developer and consultant to companies wishing to build their e-commerce business. The company also is an incubator of Internet start-ups. Oracle sells software for enterprise business applications. It is the second largest supplier behind Microsoft. Qualcomm is a pioneer in the commercialization of digital wireless transmission known as CMDA. As of this writing, the strong rally that has fueled the major stock market indices for many months has waned. We have felt that the rally was long in the tooth, and that a significant correction was on the horizon. The Fund's technology position has been reduced somewhat as additions have been made in other sectors such as utilities and consumer cyclicals. However, we continue to believe certain segments of technology will provide superior revenue and earnings growth, and therefore should be rewarding to investors. The fund is positioned for a more broadly based market in which other sectors besides technology serve as market leaders. We are pleased with the fund's results for the latest year and are striving to create a unique, multi-capitalization investment vehicle. Thank you for your support. Richard Chauvin, Jr. Portfolio Manager COMMONWEALTH ADVISORS, INC.
Florida Street Bond Fund Schedule of Investments - April 30, 2000 (Unaudited) Common Stock - 8.7% Shares Value American Rice Co. 60,606 $ 484,848 Golden State Bancorp Litigation - Warrants (d) 82,000 84,567 Covad Communications Group, Inc. (b) 3,738 103,729 Firstworld Communication, Inc. (b) 11,653 139,105 Internet Capital Group, Inc. (b) 1,000 42,375 JPS Textile Group, Inc. (b) 18,245 58,156 SFAC New Holdings, Inc. (b) 25 0 PhoneTel Technologies, Inc. (b) 12,044 8,280 Trikon Technologies, Inc. (b) 42,000 593,250 ----------------- ----------------- TOTAL COMMON STOCK (Cost $2,116,744) 1,514,310 ----------------- ----------------- Preferred Stock - 2.9% Trikon Technologies, Inc. Series H (Cost $296,788) 80,816 505,100 ----------------- ----------------- Principal Corporate Bonds - 61.1% Amount Value American Eco Corp. 9.625%, 5/15/08 $ 500,000 127,500 Anacomp, Inc. 10.875%, 4/1/04 520,000 481,000 Brauns Fashions, Inc. 12.00%, 1/1/05 460,000 456,550 Building Materials Corp. 8.00%, 10/15/07 (d) 100,000 85,500 Covad Communications Group, Inc. 0.00%, 3/15/08 (a)(d) 250,000 153,750 DiGiorgio Corp. 10.00%, 6/15/07 100,000 89,000 Dimon, Inc. 8.875%, 6/1/06 175,000 156,564 Firstworld Communications, Inc. 0.00% 4/15/08 1,475,000 671,125 First Plus Home Loan 1997-4 Class B2 8.52%, 9/10/23 (d) 1,200,000 831,000 First Plus Home Loan 1997-2 Class B2 8.54%, 4/10/23 (d) 1,000,000 975,715 Global Star LP 11.25%, 6/15/04 100,000 36,500 Homeland Stores, Inc. 10.00%, 8/1/03 660,000 432,300 Laroche Industries, Inc. 9.50%, 9/15/07 2,500,000 762,500 Loehmanns, Inc. 11.875%, 5/15/03 (c) 1,500,000 337,500 McMillin Cos. LLC 13.00%, 8/31/06 (d) 1,020,000 1,020,000 Mrs. Fields Holdings Co. 14%, 12/1/05 (d) 500,000 217,500 Mrs. Fields Original Cookies, Inc. 10.125%, 12/1/04 350,000 281,750 National Equipment, Inc. 10%, 11/30/04 (c) 150,000 135,750 Oakwood Homes Corp. 7.875%, 3/1/04 140,000 76,300 Packaged Ice, Inc. 9.75%, 2/1/05 1,045,000 851,675 Paging Network, Inc. 13.50%, 6/6/05 200,000 29,500 Phar-Mor, Inc. 11.72%, 9/11/02 125,000 110,000 Ram Energy, Inc. 11.50%, 2/15/08 750,000 373,125 Seagate Technology, Inc. 7.37%, 3/1/07 150,000 131,148 Seagate Technology, Inc. 7.45%, 3/1/37 252,000 218,130 Service Merchandise, Inc. 9.00%, 12/15/04 3,781,000 434,815 SFAC New Holdings, Inc. 0.00%, 6/15/09 (a) 459,770 66,667 Specialty Foods Corp. New Holdings, Inc. 13.25%, 8/15/03 330,000 252,450 Specialty Foods Corp. Sub, Inc. 11.00%, 12/15/09 147,272 - Florida Street Bond Fund Schedule of Investments - April 30, 2000 - continued (Unaudited) Principal Corporate Bonds - continued Amount Value United Refining Co. 10.75%, 6/15/07 260,000 $ 157,300 UST, Inc. 7.25%, 6/1/09 15,000 14,221 Western Resources, Inc. 6.25%, 8/15/18 265,000 215,163 Wickes, Inc. 11.625%, 12/15/03 600,000 489,000 ----------------- ----------------- TOTAL CORPORATE BONDS (Cost $14,404,551) 10,670,998 ----------------- ----------------- Convertible Securities - 25.1% Digital Island, Inc. 6.00%, 2/15/05 650,000 407,062 Internet Capital Group, Inc. 5.50%, 12/21/04 750,000 486,562 PhyCor, Inc. 4.50%, 2/15/03 1,100,000 404,250 Plasma & Materials Technologies, Inc. 7.125%, 10/15/01 (d) 800,000 684,000 U.S. Diagnostic, Inc. 9.00%, 3/31/03 1,135,000 681,000 Vantive Corp. 4.75%, 9/1/02 1,750,000 1,513,750 Vitesse Semiconduct Corp. 4.00%, 3/15/05 (d) 250,000 218,437 ----------------- ----------------- TOTAL CONVERTIBLE BONDS (Cost $4,431,231) 4,395,061 ----------------- ----------------- Municipal Obligations - 2.5% Mississippi Development Bank Special Obligation 8.50%, 12/1/18 (Cost $456,310) 500,000 431,195 ----------------- ----------------- U.S. Government Obligations - 0.8% Fannie Mae, Series 93-124, 0.00%, 10/25/22 (Cost $148,807) 256,290 144,031 ----------------- ----------------- TOTAL INVESTMENTS - 101.1% (Cost $21,854,431) 17,660,695 ----------------- ----------------- Liabilities inexcess of other assets - (1.1)% (190,431) ----------------- ----------------- TOTAL NET ASSETS - 100.0% $ 17,470,264 ================= (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 April 30, 2000. (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 April 30, 2000 the value of these securities amounted to $4,270,469 or 24.44% of net assets.
Florida Street Bond Fund April 30, 2000 Statement of Assets & Liabilities (Unaudited) Assets Investment in securities, at value (cost $21,854,431) $ 17,660,695 Dividend receivable 426 Interest receivable 975,302 Other receivables 35,000 Receivable from broker 85,073 Receivable for securities sold 473,859 Receivable from investment advisor for reimbursed expenses 33,265 ------------------ Total assets 19,263,620 Liabilities Payable to custodian bank $ 1,281,795 Accrued investment advisory fee payable 12,948 Dividend Payable 3,075 Payable for securities purchased 456,236 Payable for fund shares redeemed 36,128 Trustees' fees accrued 1,992 Miscellaneous expenses 1,182 ----------------- Total liabilities 1,793,356 ------------------ Net Assets $ 17,470,264 ================== Net Assets consist of: Paid in capital $ 23,589,230 Accumulated net investment loss (83,610) Accumulated net realized gain (loss) on investments (1,841,620) Net unrealized depreciation on investments (4,193,736) ------------------ Net Assets, for 2,383,632 shares $ 17,470,264 ================== Net Asset Value Net Assets Offering price and redemption price per share ($17,470,264 / 2,383,632) $ 7.33 ==================
Florida Street Bond Fund Statement of Operations for six months period ended April 30, 2000 (Unaudited) Investment Income Dividend income $ 394 Interest income 1,664,024 Miscellaneous income 2,445 --------------- Total Income 1,666,863 Expenses Investment advisory fee $ 96,424 Trustees fees 1,992 --------------- Total expenses before reimbursement 98,416 Reimbursed expenses (26,245) --------------- Total operating expenses 72,171 --------------- Net Investment Income 1,594,692 --------------- Realized & Unrealized Gain (Loss) Net realized loss on investment securities (1,177,798) Change in net unrealized appreciation on investment securities 726,071 --------------- Net loss on investment securities (451,727) --------------- Net increase in net assets resulting from operations $ 1,142,965 ===============
Florida Street Bond Fund Statement of Changes in Net Assets Six months ended Year April 30, ended 2000 October 31, (Unaudited) 1999 ----------------- ----------------- Increase in Net Assets Operations Net investment income $ 1,594,692 $ 3,696,985 Net realized loss on investment securities (1,177,798) (663,804) Change in net unrealized appreciation (depreciation) 726,071 (3,368,296) ----------------- ----------------- Net increase (decrease) in net assets resulting from operations 1,142,965 (335,115) ----------------- ----------------- Distributions to shareholders From net investment income (1,672,514) (3,688,339) Return of capital - From net realized gain - (71,037) ----------------- ----------------- Total distributions (1,672,514) (3,759,376) ----------------- ----------------- Share Transactions Net proceeds from sale of shares 1,942,911 5,070,098 Shares issued in reinvestment of distributions 1,662,740 3,586,408 Shares redeemed (3,899,698) (6,196,752) ----------------- ----------------- Net increase (decrease) in net assets resulting from share transactions (294,047) 2,459,754 ----------------- ----------------- Total decrease in net assets (823,596) (1,634,737) Net Assets Beginning of period 18,293,860 19,928,597 ----------------- ----------------- End of period [including accumulated net investment income/ (loss) of (83,610)and $(5,788), respectively] $ 17,470,264 $ 18,293,860 ================= =================
Florida Street Bond Fund Financial Highlights Six months ended Year Year Period April 30, ended ended ended 2000 October 31, October 31, October 31, (Unaudited) 1999 1998 1997 (a) -------------- --------------- -------------- -------------- Selected Per Share Data Net asset value, beginning of period $ 7.53 $ 9.16 $ 9.95 $ 10.00 -------------- --------------- -------------- -------------- Income from investment operations Net investment income 0.69 1.51 0.85 0.21 Net realized and unrealized gain(loss) (0.17) (1.60) (0.79) (0.12) -------------- --------------- -------------- -------------- Total from investment operations 0.52 (0.09) 0.06 0.09 -------------- --------------- -------------- -------------- Less Distributions From net investment income (0.72) (1.51) (0.85) (0.02) From net realized gain(loss) - (0.03) - (0.12) -------------- --------------- -------------- -------------- Total distributions (0.72) (1.54) (0.85) (0.14) -------------- --------------- -------------- -------------- -------------- --------------- -------------- -------------- Net asset value, end of period $ 7.33 $ 7.53 $ 9.16 $ 9.95 ============== =============== ============== ============== Total Return (b) 7.03% (1.45)% 0.33% 0.90% Ratios and Supplemental Data Net assets, end of period (000) $17,470 $18,294 $19,929 $7,289 Ratio of expenses to average net assets 0.90% (c) 0.75% 0.75% 0.53% (c) Ratio of expenses to average net assets before reimbursement 1.23% (c) 1.17% 1.10% 1.10% (c) Ratio of net investment income to average net assets 19.97% (c) 17.77% 8.73% 3.95% (c) Ratio of net investment income to average net assets before reimbursement 19.64% (c) 17.35% 8.38% 3.38% (c) Portfolio turnover rate 129.61% (c) 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 Schedule of Investments - April 30, 2000 (Unaudited) Common Stock - 84.1% Shares Value CAPITAL EQUIPMENT & SERVICES - 3.3% Cognex Corp. (a) 800 $ 45,500 General Dynamics Corp. 1,000 58,500 SPX Corp. (a) 400 43,225 Thermo Electron Corp. 1,500 29,156 ----------------- ----------------- 176,381 ----------------- ----------------- CONSUMER CYCLICALS - 10.3% Braun's Fashions Corp. (a) 4,500 102,938 Delphi Automotive Systems, Inc. 2,000 38,250 Lowe's Companies, Inc. 1,500 74,250 Meade Instruments Corp. (a) 500 36,562 Office Depot, Inc. (a) 5,000 53,125 Pacific Sunware of California, Inc. (a) 1,300 44,281 SCP Pool Corp. (a) 1,875 69,023 Tandy Corp. (d) 2,500 142,500 ----------------- ----------------- 560,929 ----------------- ----------------- CONSUMER NON-DURABLES & SERVICES - 4.0% Caliber Learning Network, Inc. (a) 3,200 15,200 Rare Medium Group, Inc. (a) 9,675 198,942 ----------------- ----------------- 214,142 ----------------- ----------------- ENERGY - 3.9% Baker Hughes, Inc. 1,500 47,719 Core Laboratories N.V. (a) 3,000 84,375 Noble Drilling Corp. (a) 2,000 79,875 ----------------- ----------------- 211,969 ----------------- ----------------- FINANCIALS - 2.8% Federated Investors, Inc. - Class B 1,200 33,600 Protective Life Corp. (a) 2,200 52,387 State Street Corp. 700 67,813 ----------------- ----------------- 153,800 ----------------- ----------------- HEALTH CARE - 3.1% Biogen, Inc. (a) 500 29,406 Watson Pharmaceuticals, Inc. (a) 3,100 139,306 ----------------- ----------------- 168,712 ----------------- ----------------- NATURAL RESOURCES/ BASIC MATERIALS - 1.9% Georgia-Pacific Corp. 2,700 62,775 Martin Marietta Materials, Inc. 800 42,400 ----------------- ----------------- 105,175 ----------------- ----------------- Florida Street Growth Fund Schedule of Investments - April 30, 2000 (Unaudited) - continued Common Stock - continued Shares Value TECHNOLOGY - 38.3% Alternative Power - 7.5% American Power Conversion Corp. (a) 1,400 $ 49,437 American Superconductor Corp. (a) 1,000 38,188 Evercel, Inc. (a) 2,400 37,950 International Rectifier Corp. (a) 3,300 160,875 Mechanical Technology, Inc. (a) 4,500 79,594 Zygo Corp. (a) 1,700 43,350 ----------------- ----------------- 409,394 ----------------- ----------------- Data Storage - 4.6% Cacheflow, Inc. (a) 1,400 103,950 Giga -Tronics, Inc. (a) 1,000 10,875 Procom Technologies, Inc. (a) 1,600 57,600 Tricord Systems, Inc. (a) 1,000 12,500 Veeco Instruments, Inc. (a) 1,000 62,125 ----------------- ----------------- 247,050 ----------------- ----------------- Electronics Manufacturing Services - 1.3% Flextronics International Ltd. (a) 1,000 70,250 ----------------- ----------------- Network Equipment - 1.2% Methode Electronics, Inc. 1,500 62,508 ----------------- ----------------- Optical Equipment - 3.2% Bookham Technology PLC (a) (c) 1,500 78,000 II-VI, Inc. (a) 1,700 68,850 Stocker & Yale, Inc. (a) 800 25,300 ----------------- ----------------- 172,150 ----------------- ----------------- Semiconductors - 10.3% Galileo Technology Ltd. (a) 3,000 52,688 National Semiconduct Corp. (a) 2,200 133,650 S3, Inc. (a) 12,000 168,750 Semtech Corp. (a) 700 47,731 Teradyne, Inc. (a) 700 77,000 Trikon Technologies, Inc. (a) 3,000 42,375 Xilinx Inc. (a) 500 36,625 ----------------- ----------------- 558,819 ----------------- ----------------- Software - 0.8% GSV, Inc. (a) 12,000 10,500 PeopleSoft, Inc. (a) 2,500 34,844 ----------------- ----------------- 45,344 ----------------- ----------------- Technology Services - 6.3% Dycom Industries, Inc. 5,625 292,500 Intercept Group, Inc. (a) 1,000 17,250 Unisys Corp. (a) 1,400 32,375 ----------------- ----------------- 342,125 ----------------- ----------------- Florida Street Growth Fund Schedule of Investments - April 30, 2000 (Unaudited) - continued Common Stock - continued Shares Value TECHNOLOGY - continued Telecommunications Equipment - 3.1% Commscope, Inc. (a) 800 $ 38,150 QUALCOMM, Inc. (a) 1,200 130,125 ----------------- ----------------- 168,275 ----------------- ----------------- TOTAL TECHNOLOGY 2,075,915 ----------------- ----------------- TELECOMMUNICATIONS SERVICES - 6.7% Adelphia Business Solutions, Inc. - Class A (a) 1,500 52,500 Alltel Corp. 900 59,962 Global Grossing Ltd. (a) 1,810 57,015 MCI WorldCom, Inc. (a) 1,350 61,341 Qwest Communications, Inc. (a) 1,500 65,625 Williams Communications Group, Inc. (a) 1,800 66,600 ----------------- ----------------- 363,043 ----------------- ----------------- UTILITIES - 9.8% AES Corp. (a) 600 53,663 Avista Corp. 3,500 103,469 Calpine Corp. (a) 500 45,719 Conectiv, Inc. 5,000 88,750 IdaCorp, Inc. 3,500 129,062 Quanta Services, Inc. (a) 2,400 111,600 ----------------- ----------------- 532,263 ----------------- ----------------- TOTAL COMMON STOCKS (Cost $3,627,807) 4,562,329 ----------------- ----------------- Principal Money Market Securities - 18.8% Amount Federated Prime Obligations Fund, 6.07% (b) (Cost $1,022,553) $1,022,553 $ 1,022,553 ----------------- ----------------- TOTAL INVESTMENTS - 102.9% (Cost $4,650,360) 5,584,882 ----------------- ----------------- Other assets less liabilities - (2.9)% (157,728) ----------------- ----------------- Total Net Assets - 100.0% $ 5,427,154 ================= (a) Non-income producing (b) Variable rate security; the coupon rate shown represents the rate at April 30, 2000 (c) American Depository Receipt (d) Name Changed to RadioShack Corp. effective May 31, 2000
Florida Street Growth Fund April 30, 2000 Statement of Assets & Liabilities (Unaudited) Assets Investment in securities, at value (cost $4,650,360) $ 5,584,882 Dividends receivable 387 Interest receivable 4,356 Receivable for fund shares sold 6,281 Receivable for securities sold 145,163 ------------------ Total assets 5,741,069 Liabilities Payable to custodian bank $ 52 Accrued investment advisory fee 6,210 Other payables 72 Payable for securities purchased 307,581 ----------------- Total liabilities 313,915 ------------------ Net Assets $ 5,427,154 ================== Net Assets consist of: Paid in capital $ 3,253,073 Accumulated net investment loss (21,624) Accumulated net realized gain (loss) on investments 1,261,183 Net unrealized appreciation on investments 934,522 ------------------ Net Assets, for 321,204 shares $ 5,427,154 ================== Net Asset Value Net Assets Offering price and redemption price per share ($5,427,154 / 321,204) $ 16.90 ==================
Florida Street Growth Fund Statement of Operations for the six months ended April 30, 2000 (Unaudited) Investment Income Dividend income $ 6,557 Interest income 6,880 --------------- Total Income 13,437 Expenses Investment advisory fee $ 33,658 Trustees' fees 1,799 --------------- Total expenses before reimbursement 35,457 Reimbursed expenses (1,727) --------------- Total operating expenses 33,730 --------------- Net Investment Income (Loss) (20,293) --------------- Realized & Unrealized Gain (Loss) Net realized gain on investment securities 1,669,306 Change in net unrealized appreciation (depreciation) on investment securities 260,958 --------------- Net gain on investment securities 1,930,264 --------------- Net increase in net assets resulting from operations $ 1,909,971 ===============
Florida Street Growth Fund Statement of Changes in Net Assets Six months ended Year April 30 ended 2000 October 31, (Unaudited) 1999 ----------------- ----------------- Increase in Net Assets Operations Net investment loss $ (20,293) $ (15,287) Net realized gain (loss) on investment securities 1,669,306 (106,021) Change in net unrealized appreciation 260,958 787,262 ----------------- ----------------- Net increase in net assets resulting from operations 1,909,971 665,954 ----------------- ----------------- Distributions to shareholders From net investment income 0 (6,024) Return of capital 0 0 From net realized gain 0 0 ----------------- ----------------- ----------------- ----------------- Total Distributions 0 (6,024) ----------------- ----------------- Share Transactions Net proceeds from sale of shares 28,227 1,232,745 Shares issued in reinvestment of distributions 0 6,024 Shares redeemed (113,763) (1,615,951) ----------------- ----------------- Net decrease in net assets resulting from share transactions (85,536) (377,182) ----------------- ----------------- Total increase in net assets 1,824,435 282,748 Net Assets Begining of period 3,602,719 3,319,971 ----------------- ----------------- End of period [including accumulated net investment loss of $(21,624) and $(1,331)] $ 5,427,154 $ 3,602,719 ================= =================
Florida Street Growth Fund Financial Highlights Six months ended Year Year Period April 30 ended ended ended 2000 October 31, October 31, October 31, (Unaudited) 1999 1998 1997 (a) -------------- --------------- --------------- -------------- Selected Per Share Data Net asset value, beginning of period $ 10.98 $ 9.16 $ 10.19 $ 10.00 -------------- --------------- --------------- -------------- Income from investment operations Net investment income (loss) (0.06) (0.04) 0.02 0.03 Net realized and unrealized gain (loss) 5.98 1.88 (1.01) 0.16 -------------- --------------- --------------- -------------- Total from investment operations 5.92 1.84 (0.99) 0.19 -------------- --------------- --------------- -------------- Less Distributions From net investment income 0.00 (0.02) (0.01) 0.00 From net realized gain (loss) 0.00 0.00 (0.03) 0.00 -------------- --------------- --------------- -------------- Total Distributions 0.00 (0.02) (0.04) 0.00 -------------- --------------- --------------- -------------- Net asset value, end of period $ 16.90 $ 10.98 $ 9.16 $ 10.19 ============== =============== =============== ============== Total Return (b) 53.92% 20.06% (9.73)% 1.90% Ratios and Supplemental Data Net assets, end of period (000) $5,427 $3,603 $3,320 $2,117 Ratio of expenses to average net assets 1.35% (c) 1.35% 1.25% 1.35% (c) Ratio of expenses to average net assets before reimbursement 1.42% (c) 1.38% 1.35% 1.35% (c) Ratio of net investment income (loss) to (0.81)(c) (0.40)% 0.21% 1.14% (c) average net assets Ratio of net investment income (loss) to average net assets before reimbursement (0.88)(c) (0.43)% 0.12% 1.14% (c) Portfolio turnover rate 157.59% (c) 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 APRIL 30, 2000 (UNAUDITED) NOTE 1. ORGANIZATION Florida Street Bond Fund (the "Bond Fund") and Florida Street Growth Fund (the "Growth Fund") were organized as series of the AmeriPrime Funds, an Ohio business trust (the "Trust") on June 10, 1997 and commenced operations on June 10, 1997. 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. 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, when 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. FLORIDA STREET FUNDS NOTES TO FINANCIAL STATEMENTS APRIL 30, 2000 (UNAUDITED) - CONTINUED NOTE 2. SIGNIFICANT ACCOUNTING POLICIES - CONTINUED 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- 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 APRIL 30, 2000 (UNAUDITED) - 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, 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 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 six months ended April 30, 2000 the Advisor received fees of $87,837 and $33,658 from the Bond Fund and the Growth Fund, respectively. 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 to 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 the Fund's assets under $50 million, 0.075% of the Fund's assets from $50 million to $100 million, and 0.050% of the Fund's assets over $100 million (subject to a minimum fee of $2,500 per month). For the six months ended April 30, 2000 the Administrator received fees of $8,805 and $6,000 from the Advisor for administrative services provided to the Bond Fund and the Growth Fund, respectively. The Fund retains Unified Fund Services, Inc. ("Unified"), a wholly owned subsidiary of Unified Financial Services, Inc., to act as the Fund's transfer agent and fund accountant. 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 April 30, 2000, Unified received fees of $2,411 and $2,413 from the Advisor for transfer agent services provided to the Bond Fund and the Growth Fund, respectively. For its services as fund accountant, Unified receives an annual fee from the Advisor equal to 0.0275% of the Fund's assets up to $100 million, and 0.0250% of the Fund's assets from $100 million to $300 million, and 0.0200% of the Fund's assets over $300 million (subject to various monthly minimum fees, the maximum being $2,000 per month for assets of $20 FLORIDA STREET FUNDS NOTES TO FINANCIAL STATEMENTS APRIL 30, 2000 (UNAUDITED) - CONTINUED NOTE 4. FEES AND OTHER TRANSACTIONS WITH AFFILIATES - CONTINUED to $100 million). For the six months ended April 30, 2000, Unified received fees of $10,200 and $5,700 from the Advisor for fund accounting services provided to the Bond Fund and the Growth Fund, respectively. Each 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 period ended April 30, 2000. Certain members of management of the Administrator and the Distributor are also members of management of the AmeriPrime Trust. NOTE 5. SHARE TRANSACTIONS BOND FUND. As of April 30, 2000, there was an unlimited number of authorized shares for the Fund. Paid in capital at April 30, 2000 was $23,589,230. Transactions in shares were as follows:
SIX MONTHS ENDED YEAR ENDED APRIL 30, 2000 OCTOBER 31, 1999 SHARES DOLLARS SHARES DOLLARS Shares sold 257,307 $1,942,911 574,601 $5,070,098 Shares issued in reinvestment of dividends 220,960 1,662,740 416,536 3,586,408 Shares redeemed (523,829) (3,899,698) (737,701) (6,196,752) --------- ----------- --------- ----------- (45,562) $(294,047) 253,436 $2,459,754 ========= =========== ========= ============
FLORIDA STREET FUNDS NOTES TO FINANCIAL STATEMENTS APRIL 30, 2000 (UNAUDITED) - CONTINUED NOTE 5. SHARE TRANSACTIONS - CONTINUED GROWTH FUND. As of April 30, 2000, there was an unlimited number of authorized shares for the Fund. Paid in capital at April 30, 2000 was $3,253,073. Transactions in shares were as follows:
SIX MONTH ENDED YEAR ENDED APRIL 30, 2000 OCTOBER 31, 1999 SHARES DOLLARS SHARES DOLLARS Shares sold 1,660 $28,227 119,466 $1,232,745 Shares issued in reinvestment of dividends 0 0 593 6,024 Shares redeemed (8,658) (113,763) (154,419) (1,615,951) ------- --------- --------- ----------- (6,998) $(85,536) (34,360) $(377,182) ======= ========= ========= ===========
NOTE 6. INVESTMENTS BOND FUND. For the six months period ended April 30, 2000, purchases and sales of investment securities, other than short-term investments, aggregated $10,895,167 and $11,340,055, respectively. The gross unrealized appreciation for all securities totaled $648,456 and the gross unrealized depreciation for all securities totaled $4,842,188 for a net unrealized depreciation of $4,193,736. The aggregate cost of securities for federal income tax purposes at April 30, 2000 was $21,854,431. GROWTH FUND. For the six months ended April 30, 2000, purchases and sales of investment securities, other than short-term investments, aggregated $3,582,076 and $4,182,418, respectively. The gross unrealized appreciation for all securities totaled $1,160,607 and the gross unrealized depreciation for all securities totaled $226,085 for a net unrealized appreciation of $934,522. The aggregate cost of securities for federal income tax purposes at April 30, 2000 was $4,650,360. FLORIDA STREET FUNDS NOTES TO FINANCIAL STATEMENTS APRIL 30, 2000 (UNAUDITED) - CONTINUED 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 April 30, 2000, Charles Schwab & Co. owned of record in aggregate more than 97% and 95% of the Bond Fund and the Growth Fund, respectively. -----END PRIVACY-ENHANCED MESSAGE-----