N-30D 1 0001.txt AMERIPRIME FUNDS AUXIER FOCUS FUND UPDATE BY JEFF AUXIER Dear Fellow Shareholders: Performance Results - Semi-Annual Period Ended December 31, 2000 For the 12-month period ended December 31, 2000 the Auxier Focus Fund gained 4.05%. This compares with a 10.13% decline for the S&P 500 and a 39.28% decline for the tech-weighted NASDAQ index. SOURCE: The Wall Street Journal Total Return Periods Ending 12/31/00 AUX1Z S&P 500 ------------------------------------------------------------------------------- Fiscal Year to Date (six months) 6.87% (8.71)% One Year Total Return 4.05% (10.13)% Average Annual Since Inception (July, 9 1999) 4.74% (2.68)% Date Auxier Focus S&P$500Index Fund Index $ 10,711.00 $ 9,577.00 7/9/99 10,000.00 10,000.00 7/30/99 10,020.00 9,477.01 8/31/99 10,040.00 9,430.12 9/30/99 10,070.00 9,171.87 10/31/99 10,450.00 9,752.08 11/30/99 10,260.00 9,950.26 12/31/99 10,293.80 10,535.96 1/31/00 10,414.20 10,006.70 2/29/00 10,133.28 9,817.43 3/31/00 10,574.73 10,777.25 4/30/00 10,233.61 10,453.15 5/30/00 10,012.88 10,238.58 6/30/00 10,022.91 10,490.99 7/31/00 9,912.55 10,327.09 8/31/00 10,374.07 10,968.23 9/30/00 10,464.36 10,389.30 10/31/00 10,394.13 10,345.26 11/30/00 10,173.41 9,530.24 12/31/00 10,711.08 9,576.99 |X| Past performance is not indicative of future performance. |X| The Auxier Focus Fund's historical results are net of all expenses, versus the gross market benchmark (the S&P 500 Index). Investors are reminded that when trying to achieve benchmark returns, investment management fees, transaction costs and execution costs will be incurred. |X| The S&P 500 Index is an unmanaged index of 500 selected common stocks, most of which are listed on the New York Stock Exchange. The Index is adjusted for dividends and weighted toward stocks with large market capitalizations. |X| Commencement of operations: July 9, 1999 |X| Commencement of investment in accordance with investment objective: October 1, 1999. Although this is the first full calendar year of the fund, your manager has over 16 years of experience managing high net worth client portfolios. Some of the benefits of this new fund include: |X| A smaller size allows for greater flexibility and a wider universe of investment choices. |X| The stock positions are new and have minimal embedded tax liability. |X| The manager is the single largest shareholder. |X| The investment philosophy is sound, based on a long term, price/value approach with a margin of safety mentality. In order to compound money at high rates it is important to avoid permanent capital loss. How much can we lose in a worst case scenario? That is the first question to ask. Unfortunately, today most of the investing public has difficulty quantifying the risk that they are taking. To figure individual company risk, one has to first determine the future earning power of the company and thus the intrinsic value. This is calculated by discounting future cash flows back to the present. The more predictable those cash flows, the higher the net present value. Only after such analysis can you figure out a price that represents value with an adequate margin of safety. True investors try to minimize the potential risk of each transaction. The ideal company is one with a proven history of a consistent growth in sales and earnings. It is more important to have a slower growth rate if it is more sustainable. Successful execution commands huge premiums in the stock market. The search is for the outstanding business franchise that is mispriced due to temporary factors or excisable problems. Then, patience is required as the company eventually returns to favor and the price is revalued higher. Over the past couple of years, the public criteria for investment were based on upward price momentum. The focus was on price movements, not fundamental value. This is the riskiest environment -- when all the good news is known and prices soar far above underlying business value. John Templeton, one of the world's great long-term investors, was recently quoted: "The biggest mistake investors make is being influenced by the widespread tendency of the media to focus on things that are dramatic and to play them up far beyond their true value. You don't make money by doing what the crowd does; you make money by going against what the crowd's doing". This can lead to one of the threats to portfolio compounding, the "torpedo stock". A torpedo stock is one that is very popular, has high expectations built into the stock, and an extreme valuation. If the company fails to live up to the projections and the earnings drop, the price implodes as well. That is why it is more sensible to shop in areas that are "out of favor", where expectations are low. The trick is to identify improving fundamentals while prices are still low before the market catches on. This can lead to a situation where the risk is low and yet the upside can be dramatic. The year in review The problems of 2000 were a result of higher interest rates, tighter credit and a deceleration in earnings growth. This led to a collapse in the extremely overvalued technology sector. Ironically, the public shifted over $221 billion into growth/momentum funds through the year ended in August. At the same time they took out approximately $83 billion from value funds. The last 8 of 11 months of 2000 saw value outperform growth. SOURCE: Salomon Smith Barney Recently, the P/E of the Russell 1000 Growth Index stood at 38.8 compared to 17.5 times for the Russell 1000 Value Index. And yet, profitability for growth stocks compared to value stocks is at an historic low. History teaches us that stocks do return to trend, which leads me to believe that the extremely high valuations in technology will continue to be purged while those companies which are deeply undervalued should rise. Reasons for optimism |X| Bear markets purge out greed and speculation leading to more rational capital allocation. Severe market declines are like the weather; they are to be expected and should be viewed as an opportunity to buy high quality businesses at attractive prices. |X| Inflation remains low. |X| Recent budget surpluses leave some room for retroactive tax cuts if the economy needs help. |X| Currently, nearly $4 trillion in mortgages are in a position where it makes sense to refinance. This can help consumer balance sheets. SOURCE: Fannie Mae |X| The median price/earnings ratio for the Value Line 1700 is still close to 15 time earnings. The Luethold Group recently completed a study of 3000 stocks and came up with a median price/earnings ratio of 15.4 times. These are very reasonable, especially if interest rates decline. |X| For the first time in over a year the Federal Reserve is aggressively lowering interest rates. This is material. According to Ned Davis Research, the vast majority of positive equity returns for the past 50 years have come during easing periods. Going back to 1914, the Dow Jones Industrial Average has surged 20% on average 12 months after the first rate cut. The returns exceed 25% 12 months after a second rate cut. In summary, the market has spent the last year purging a lot of speculative excesses. We are returning to a much more rational, value-based investment environment. There are sectors that continue to be way overpriced, but the majority seem to be much more reasonable. With the Federal Reserve embarking on an aggressive easing cycle, the backdrop for stocks looks encouraging. Still, more than ever, it will be important to quantify intrinsic value as well as risk. . Thank you for your support! Sincerely, J. Jeffrey Auxier Portfolio Manager Auxier Focus Fund Schedule of Investments - December 31, 2000 (Unaudited) Common Stocks - 61.2% Shares Value Banks - National Commercial Banks - 8.8% Bank One Corp. 200 $ 7,325 Chase Manhattan Corp. 300 13,631 Citigroup, Inc. 293 14,980 Firstar Corp. 2,200 51,150 Fleet Boston Corp. 1,300 48,831 U.S. Bancorp 2,100 61,294 ----------------- 197,211 ----------------- Biological Products Except Diagnostic Substances - 1.1% Amgen, Inc. (a) 400 25,575 ----------------- Building Materials Dealers Retail - 0.6% Home Depot, Inc. 100 4,569 Lowes Companies, Inc. 200 8,900 ----------------- 13,469 ----------------- Business Services - 2.0% Viad Corp. 2,000 46,000 ----------------- Cable & Other Pay Television Services - 0.3% Cox Communications, Inc. (a) 100 4,656 Hughes Electronics Corp. (a) 78 1,794 ------------------ 6,450 ----------------- Chemicals and Allied Products - 3.1% Dow Chemical Co. 1,900 69,587 ----------------- Computer and Office Equipment - 0.4% Hewlett-Packard Co. 300 9,469 ----------------- Computer Communication Equipment - 0.2% Auspex Systems, Inc. (a) 500 3,500 ----------------- Computer Processing & Data Preparation - 0.1% Ceridian Corp. (a) 100 1,994 ----------------- Computer Programming, Data Processing and Computer Services - 0.2% America Online, Inc. (a) 150 5,220 ----------------- Cutlery, Handtools & General Hardware - 0.8% Gillette Co. 500 18,062 ----------------- Federal and Federally-Sponsored Credit Agencies - 5.0% Fannie Mae 100 8,675 Federal Home Loan Mortgage Corp. 1,500 103,313 ----------------- 111,988 ----------------- Finance Services - 0.4% Morgan Stanley, Dean Witter & Co. 100 7,925 ----------------- Financial Services - Investment Firms - 0.7% Berkshire Hathaway, Inc. - Cl B (a) 7 16,478 ----------------- Fire, Marine & Casualty Insurance - 1.8% Allstate Corp. 100 4,356 Safeco Corp. 1,100 36,163 ----------------- 40,519 ----------------- Household Audio & Video Equipment Manufacturing - 0.1% Gemstar - TV Guide International Group Ltd. (a) 65 2,998 ----------------- Iron & Steel Foundries - 0.4% Precision Castparts Corp. 200 8,413 ----------------- Auxier Focus Fund Schedule of Investments - December 31, 2000 (Unaudited) - continued Miscellaneous Business Services - 2.9% Nova Corp. 3,300 $ 65,794 ----------------- Motor Vehicles and Passenger Car Body Manufacturing - 0.6% General Motors Corp. 275 14,008 ----------------- Newspapers: Publishing or Publishing & Printing - 0.8% Gannett Company, Inc. 100 6,306 Knight-Ridder, Inc. 200 11,375 ----------------- 17,681 ----------------- Petroleum Refining - 1.1% Chevron Corp. 300 25,331 ----------------- Pharmaceutical Preparations - 2.9% American Home Products Corp. 100 6,355 Bristol Myers Squibb Co. 800 59,150 ----------------- 65,505 ----------------- Radio & Television Broadcasting & Communication Equipment - 1.9% Motorola, Inc. 2,100 42,525 ----------------- Refuse System - 1.1% Waste Management, Inc. 900 24,975 ----------------- Restaurants - 3.5% McDonald's Corp. 1,200 40,800 Tricon Global Restaurant, Inc. (a) 900 29,700 Wendy's International, Inc. 300 7,875 ----------------- 78,375 ----------------- Retail - Grocery Stores - 0.9% Albertson's, Inc. 250 6,625 Kroger Co (a) 500 13,531 ----------------- 20,156 ----------------- Retail - Miscellaneous Shopping Goods Stores - 1.0% Office Depot, Inc. (a) 3,000 21,375 ----------------- Savings Institutions Not Federally Chartered - 0.7% Washington Mutual, Inc. 300 15,919 ----------------- Semiconductors & Related Devices - 0.9% National Semiconductor Corp. (a) 300 6,037 Semiconductors Holders Trust Depository Receipt 200 9,800 Triquint Semiconductor, Inc. (a) 100 4,369 ----------------- 20,206 ----------------- Services - Business Services - 0.1% Telstra Corp. Ltd (c) 100 1,775 ----------------- Services - Commercial Physical & Biological Research - 2.0% Edwards Lifesciences Corp. (a) 2,500 44,375 ----------------- Services - Educational Services - 3.7% ITT Educational Services, Inc. (a) 3,800 83,600 ----------------- Services - Professional Services - 3.0% H & R Block, Inc. 1,600 66,200 ----------------- Software (Computer) Prepackaged - 0.8% Microsoft Corp. (a) 400 17,350 ----------------- Auxier Focus Fund Schedule of Investments - December 31, 2000 (Unaudited) - continued Telephone Communication Except Radiotelephone - 4.7% AT & T Corp. 1,600 $ 27,600 Avaya, Inc. (a) 33 340 Centurytel, Inc. 200 7,150 Lucent Technologies, Inc. 900 12,150 Sprint Corp. 300 6,094 Telefonica SA (a) (c) 28 1,400 Telefonos De Mexico SA (c) 700 31,587 Williams Communications Group, Inc. (a) 100 1,175 WorldCom, Inc. (a) 1,325 18,633 ----------------- 106,129 ----------------- Trucking & Courier Services (No Air) - 0.3% United Parcel Service, Inc. - Cl B 100 5,875 ----------------- Water Transportation - 0.4% Carnival Corp. - Cl A 300 9,244 ----------------- Wholesale Petroleum & Petroleum Products - 1.9% Enron Corp. 500 41,562 ----------------- TOTAL COMMON STOCKS (Cost $1,317,794) 1,372,818 ----------------- Unit Investment Trust - 2.6% NASDAQ 100 Trust Unit Series 1 500 29,187 S & P 500 Depository Receipts 100 13,119 The Financial Select Sector SPDR Fund 500 14,750 ----------------- TOTAL UNIT INVESTMENT TRUST (Cost $67,271) 57,056 ----------------- Preferred Stocks -1.4% Central Power & Light 4.00% 305 17,690 Telecomunicacoes Brasileiras S.A. - Telebras (c) 200 14,575 Tele Norte Leste Participacoes S.A. (c) 5 114 ----------------- TOTAL PREFERRED STOCK (Cost $32,769) 32,379 ----------------- Principal Value Money Market Securities - 37.1% Firstar Treasury Fund, 5.55% (b) (Cost $832,530) $ 832,530 832,530 ----------------- TOTAL INVESTMENTS - 102.3% (Cost $2,250,364) 2,294,783 ----------------- Liabilities in excess of other assets - (2.3)% (52,592) ----------------- TOTAL NET ASSETS - 100.0% $ 2,242,191 =================
(a) Non-income producing (b) Variable rate security; the coupon rate shown represents the rate at December 31, 2000. (c) American Depository Receipt Auxier Focus Fund December 31, 2000 Statement of Assets & Liabilities (Unaudited) Assets Investment in securities (cost $2,250,364) $ 2,294,783 Cash 1,790 Receivable for investments sold 1,151 Dividends receivable 1,869 Interest receivable 3,584 ------------------ Total assets 2,303,177 Liabilities Accrued investment advisory fee 3,708 Income distribution payable 63 Payable for investments purchased 57,215 ------------------ Total liabilities 60,986 ------------------ Net Assets $ 2,242,191 ================== Net Assets consist of: Paid in capital $ 2,194,976 Accumulated undistributed net investment income (loss) (1,116) Accumulated undistributed net realized gain (loss) on investments 3,912 Net unrealized appreciation (depreciation) on investments 44,419 ------------------ Net Assets, for 213,129 shares $ 2,242,191 ================== Net Asset Value Net asset value, offering and redemption price per share ($2,242,191 / 213,129) $ 10.52 Auxier Focus Fund Statement of Operations for the six months ended December 31, 2000 (Unaudited) Investment Income Dividend income $ 7,140 Interest income 18,975 ----------------- Total Income 26,115 Expenses Investment advisory fee 11,502 Trustees' fees 1,029 ----------------- Total expenses before reimbursement 12,531 Reimbursed expenses (1,029) ----------------- Total operating expenses 11,502 ----------------- Net Investment Income (Loss) 14,613 ----------------- Realized & Unrealized Gain (Loss) Net realized gain (loss) on investment securities 3,902 Change in net unrealized appreciation (depreciation) on investment securities 99,328 ----------------- Net realized & unrealized gain (loss) on investment securities 103,230 ----------------- Net increase (decrease) in net assets resulting from operations $ 117,843 ================= Auxier Focus Fund Statement of Changes in Net Assets For the six months ended For the period December 31, 2000 ended June 30, (Unaudited) 2000 (a) ------------------- ------------------ Increase (Decrease) in Net Assets Operations Net investment income (loss) $ 14,613 $ 14,099 Net realized gain (loss) on investment securities 3,902 5,975 Change in net unrealized appreciation (depreciation) 99,328 (54,908) ------------------- ------------------ Net increase (decrease) in net assets resulting from operations 117,843 (34,834) ------------------- ------------------ Distributions to shareholders From net investment income (26,392) (3,437) From capital gains (5,965) - ------------------- ------------------ Total distributions (32,357) (3,437) ------------------- ------------------ Share Transactions Net proceeds from sale of shares 824,281 1,370,891 Shares issued in reinvestment of distributions 32,294 3,437 Shares redeemed (35,912) (15) ------------------- ------------------ Net increase (decrease) in net assets resulting from share transactions 820,663 1,374,313 ------------------- ------------------ Total increase (decrease) in net assets 906,149 1,336,042 ------------------- ------------------ Net Assets Beginning of period 1,336,042 0 ------------------- ------------------ End of period [including accumulated undistributed net investment income (loss) of $(1,116) and $10,662, respectively] $ 2,242,191 $ 1,336,042 =================== ================== Shares of capital stock of the Fund sold and redeemed: Shares sold 79,873 133,350 Shares reinvested 3,080 337 Shares redeemed (3,510) (1) ------------------- ------------------ Net increase in number of shares outstanding 79,443 133,686 =================== ==================
(a) For the period July 9, 1999 (Commencement of Operations) through June 30, 2000. Auxier Focus Fund Financial Highlights For the six months ended Period ended December 31, June 30, 2000 (Unauditied) 2000 (c) --------------------- -------------------- Selected Per Share Data Net asset value, beginning of period $ 9.99 $ 10.00 ------------------ ------------------- Income from investment operations Net investment income (loss) 0.09 0.18 Net realized and unrealized gain (loss) 0.47 (0.16) ------------------ ------------------- Total from investment operations 0.56 0.02 ------------------ ------------------- Less distributions: Distributions from net investment income (0.13) (0.03) Distributions from net realized gains (0.03) 0.00 ------------------ ------------------- Total distributions (0.03) (0.03) ------------------ ------------------- Net asset value, end of period $ 10.52 $ 9.99 ================== =================== Total Return 6.87% (a) 0.23% (a) Ratios and Supplemental Data Net assets, end of period (000) $ 2,242 $ 1,336 Ratio of expenses to average net assets 1.35% (b) 1.35% (b) Ratio of expenses to average net assets before reimbursement 1.47% (b) 1.62% (b) Ratio of net investment income to average net assets 1.72% (b) 1.84% (b) Ratio of net investment income to average net assets before reimbursement 1.59% (b) 1.57% (b) Portfolio turnover rate 65.55% (b) 192.04% (b)
(a) For periods of less than a full year, total return is not annualized. (b) Annualized (c) For the period July 9, 1999 (Commencement of Operations) through June 30, 2000. See accompanying notes which are an integral part of the financial statements. Auxier Focus Fund Notes to Financial Statements December 31, 2000 (Unaudited) NOTE 1. ORGANIZATION The Auxier Focus Fund (the "Fund") was organized as a series of the AmeriPrime Funds, an Ohio business trust (the "Trust") on March 22, 1999 and commenced operations on July 9, 1999. The Fund is registered under the Investment Company Act of 1940, as amended, as a non-diversified series of the Trust. The Fund's investment objective is to provide long-term capital appreciation. The Declaration of Trust permits the Trustees to issue an unlimited number of shares of beneficial interest of separate series without par value. The Fund is one of the series of funds currently authorized by the Trustees. 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 Valuation- Securities which are traded on any exchange or on the NASDAQ over-the-counter market are valued at the last quoted sale price. Lacking a last sale price, a security is valued at its last bid price except when, in the 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. Federal Income Taxes- The Fund intends to qualify each year as a "regulated investment company" under the Internal Revenue Code of 1986, as amended. By so qualifying, the Fund will not be subject to federal income taxes to the extent that it distributes substantially all of its net investment income and any realized capital gains. Dividends and Distributions- The Fund intends to 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- The Fund follows industry practice and records security transactions on the trade date. The specific identification method is used for determining gains or losses for financial statements and income tax purposes. Dividend income is recorded on the ex-dividend date and interest income is recorded on an accrual basis. Discounts and premiums on securities purchased are amortized over the life of the respective securities. Auxier Focus Fund Notes to Financial Statements December 31, 2000 (Unaudited) - continued NOTE 3. FEES AND OTHER TRANSACTIONS WITH AFFILIATES Auxier Asset Management, LLC, 8050 S. W. Warm Springs, Suite 130, Tualatin, OR 97062 (the "Advisor"), serves as investment advisor to the Fund. As of December 31, 2000, the Advisor manages approximately $175 million in assets. J. Jeffrey Auxier is President and Chief Investment Officer of the Advisor and is responsible for the day-to-day management of the Fund's portfolio. Under the terms of the management agreement, (the "Agreement"), the Advisor manages the Fund's investments subject to approval of the Board of Trustees and pays all of the expenses of the Fund except brokerage fees and commissions, taxes, borrowing costs (such as interest and dividend expense 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 the Fund's expenses, the Fund is obligated to pay the Advisor a fee computed and accrued daily and paid monthly at an annual rate of 1.35% of the average daily net assets of the Fund. 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 December 31, 2000, the Advisor received a fee of $11,502 from the Fund. The Advisor has contractually agreed to limit the total expenses of the Fund (excluding borrowing costs, taxes, brokerage fees and commissions and extraordinary expenses) to an annual rate of 1.35% of the average net assets of the Fund through October 31, 2001. For the six months ended December 31, 2000, the Advisor reimbursed expenses of $1,029. Effective October 12, 2000, AmeriPrime Financial Services, Inc. and Unified Fund Services, Inc., both wholly owned subsidiaries of Unified Financial Services, Inc., merged with one another. Prior to the merger, AmeriPrime Financial Services, Inc. served as Administrator to the Fund. The result of this merger is now Unified Fund Services, Inc. ("Unified"), still a wholly owned subsidiary of Unified Financial Services, Inc. A Trustee and the officers of the Trust are members of management and/or employees of Unified. The Fund retains Unified to manage the Fund's business affairs and provide the Fund with administrative, transfer agency, and fund accounting services, including all regulatory reporting and necessary office equipment and personnel. The Advisor paid all administrative, transfer agency, and fund accounting fees on behalf of the Fund per the management agreement. Effective December 31, 2000, AmeriPrime Financial Securities, Inc. sold substantially all of its assets to Unified Financial Securities, Inc. Both companies are wholly owned subsidiaries of Unified Financial Services, Inc. Effective as of the same date, the Fund retained Unified Financial Securities, Inc. to act as the principal distributor of its shares. There were no payments made to the Distributor for the six months ended December 31, 2000. A Trustee and officer of the Trust may be deemed to be an affiliate of Unified Financial Securities, Inc. NOTE 4. INVESTMENTS For the six months ended December 31, 2000, purchases and sales of investment securities, other than short-term investments, aggregated $1,015,903 and $335,912, respectively. As of December 31, 2000, the gross unrealized appreciation for all securities totaled $236,441 and the gross unrealized depreciation for all securities totaled $192,022 for a net unrealized depreciation of $44,419. The aggregate cost of securities for federal income tax purposes at December 31, 2000 was $2,250,364. Auxier Focus Fund Notes to Financial Statements December 31, 2000 (Unaudited) - continued NOTE 5. 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 6. 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 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 December 31, 2000, J. Jeffery Auxier, the President and Chief Investment Officer of the Advisor, beneficially owned in aggregate more than 32% of the Fund. GJMB GROWTH FUND SEMI-ANNUAL REPORT DECEMBER 31, 2000 (UNAUDITED) FUND ADVISOR: GAMBLE, JONES, MORPHY & BENT 301 EAST COLORADO BOULEVARD, SUITE 802 PASADENA, CALIFORNIA 91101 FOR A PROSPECTUS AND MORE INFORMATION, INCLUDING CHARGES AND EXPENSES CALL 1-888-912-4562. THE PROSPECTUS SHOULD BE READ CAREFULLY BEFORE INVESTING. PAST PERFORMANCE DOES NOT GUARANTEE FUTURE RESULTS. SHARES, WHEN REDEEMED, MAY BE WORTH MORE OR LESS THAN THEIR ORIGINAL COST. THE FUND'S INCEPTION DATE IS DECEMBER 31, 1998. DISTRIBUTED BY UNIFIED FINANCIAL SECURITIES, INC.
GJMB GROWTH FUND SCHEDULE OF INVESTMENTS - DECEMBER 31, 2000 (UNAUDITED) 0 COMMON STOCKS - 91.3% SHARES VALUE BEVERAGES - 3.4% Coca-Cola Co. 7,500 $ 457,031 ----------------- COMPUTER & OFFICE EQUIPMENT - 3.5% Hewlett-Packard Co. 14,700 463,969 ----------------- COMPUTER COMMUNICATIONS EQUIPMENT - 3.3% Cisco Systems, Inc. (a) 11,500 439,875 ----------------- COMPUTER STORAGE DEVICES - 3.8% EMC Corp. (a) 7,600 505,400 ----------------- ELECTRONIC & OTHER ELECTRICAL EQUIPMENT - 2.5% General Electric Co. 7,000 335,563 ----------------- ELECTRONIC COMPUTERS - 3.3% Sun Microsystems, Inc. (a) 15,600 434,850 ----------------- FEDERAL & FEDERALLY-SPONSORED CREDIT AGENCIES - 2.6% Federal National Mortgage Association 4,000 347,000 ----------------- FIRE, MARINE & CASUALTY INSURANCE - 2.7% American International Group, Inc. 3,600 354,825 ----------------- INSTRUMENTS FOR MEASUREMENT & TESTING OF ELECTRICITY & ELECTRIC SIGNALS - 3.9% Agilent Technologies, Inc. 9,500 520,125 ----------------- MOTOR VEHICLE PARTS & ACCESSORIES - 2.5% Honeywell International, Inc. 7,000 331,188 ----------------- MOTOR VEHICLES & PASSENGER CAR BODY MANUFACTURING - 2.2% Ford Motor Co. 12,301 288,305 ----------------- NATIONAL COMMERCIAL BANKS - 11.0% Bank of America Corp. 8,200 376,175 Citigroup, Inc. 6,300 321,694 FleetBoston Financial Corp. 9,600 360,600 U.S. Bancorp 13,700 399,869 ----------------- 1,458,338 ----------------- PETROLEUM REFINING - 0.9% Chevron Corp. 1,500 126,656 ----------------- PHARMACEUTICAL PREPARATIONS - 12.2% Abbott Laboratories 5,400 261,562 American Home Products Corp. 4,400 279,620 Bristol-Myers Squibb Co. 3,700 273,569 Johnson & Johnson 2,600 273,162 Merck & Co., Inc. 2,800 262,150 Pfizer, Inc. 5,800 266,800 ----------------- 1,616,863 ----------------- GJMB GROWTH FUND SCHEDULE OF INVESTMENTS - DECEMBER 31, 2000 (UNAUDITED) - CONTINUED COMMON STOCKS - CONTINUED SHARES VALUE PREPACKAGED SOFTWARE - 7.1% Microsoft Corp. (a) 10,100 $ 438,088 Oracle Corp. (a) 17,300 502,781 ----------------- 940,869 ----------------- RADIO & TV BROADCASTING & COMMUNICATIONS EQUIPMENT - 4.2% Motorola, Inc. 27,800 562,950 ----------------- RADIO TELEPHONE COMMUNICATIONS - 2.7% Vodafone Group PLC (c) 10,000 358,125 ----------------- RETAIL - LUMBER & OTHER BUILDING MATERIALS DEALERS - 3.8% Home Depot, Inc. 11,200 511,700 ----------------- SEMICONDUCTOR & RELATED DEVICES - 6.7% Intel Corp. 14,100 423,881 Texas Instruments, Inc. 10,000 473,750 ----------------- 897,631 ----------------- SOAP, DETERGENTS, CLEANING PREPARATIONS, PERFUMES & COSMETICS - 4.0% Procter & Gamble Co. 6,700 525,531 ----------------- TELEPHONE COMMUNICATIONS (NO RADIO TELEPHONE) - 5.0% AT&T Corp. 15,000 258,750 Verizon Communications 3,000 150,375 WorldCom, Inc. (a) 18,500 260,156 ----------------- 669,281 ----------------- TOTAL COMMON STOCKS (COST $11,973,106) $ 12,146,075 ----------------- PRINCIPAL AMOUNT VALUE Money Market Securities - 4.7% Firstar Treasury Fund, 5.27% (b) (Cost $629,383) 629,383 $ 629,383 ----------------- TOTAL INVESTMENTS - 96.0% (COST $12,602,489) 12,775,458 ----------------- CASH AND OTHER ASSETS LESS LIABILITIES - 4.0% 527,766 ----------------- TOTAL NET ASSETS - 100.0% $ 13,303,224 ================= (a) Non-income producing (b) Variable rate security; the coupon rate shown represents the rate at December 31, 2000. (c) American Depositary Receipt
GJMB GROWTH FUND DECEMBER 31, 2000 STATEMENT OF ASSETS & LIABILITIES (UNAUDITED) ASSETS Investment in securities (cost $12,602,489) $ 12,775,458 Cash 526,593 Receivable for fund shares sold 2,090 Dividends receivable 9,072 Interest receivable 3,674 ------------------- TOTAL ASSETS 13,316,887 ------------------- LIABILITIES Accrued investment advisory fee payable $ 12,764 Income distribution payable 899 ------------------- TOTAL LIABILITIES 13,663 ------------------- NET ASSETS $ 13,303,224 =================== NET ASSETS CONSIST OF: Paid in capital $ 13,383,486 Accumulated undistributed net investment income 436 Accumulated net realized loss on investments (253,667) Net unrealized appreciation on investments 172,969 ------------------- NET ASSETS, for 1,213,131 shares $ 13,303,224 =================== NET ASSET VALUE Net Assets Offering price and redemption price per share ($13,303,224 / 1,213,131) $ 10.97 ===================
GJMB GROWTH FUND STATEMENT OF OPERATIONS FOR THE SIX MONTHS ENDED DECEMBER 31, 2000 (UNAUDITED) INVESTMENT INCOME Dividend income $ 69,607 Interest income 37,493 --------------- TOTAL INCOME 107,100 EXPENSES Investment advisory fee $ 80,827 Trustees' fees 1,029 --------------- Total expenses before reimbursement 81,856 Reimbursed expenses (1,029) --------------- TOTAL OPERATING EXPENSES 80,827 --------------- NET INVESTMENT INCOME 26,273 --------------- REALIZED & UNREALIZED GAIN (LOSS) Net realized loss on investment securities (288,240) Change in net unrealized appreciation (depreciation) on investment securities (1,201,457) --------------- Net realized and unrealized gain (loss) on investment securities (1,489,697) --------------- NET DECREASE IN NET ASSETS RESULTING FROM OPERATIONS $(1,463,424) ===============
GJMB GROWTH FUND STATEMENT OF CHANGES IN NET ASSETS SIX MONTHS ENDED DECEMBER 31, 2000 YEAR ENDED (UNAUDITED) JUNE 30, 2000 ---------------------- ----------------------- Increase (Decrease) in Net Assets OPERATIONS Net investment income $ 26,273 $ 38,293 Net realized gain (loss) on investment securities (288,240) 414,873 Change in net unrealized appreciation (depreciation) (1,201,457) 903,367 ---------------------- ----------------------- Net increase (decrease) in net assets resulting from operations (1,463,424) 1,356,533 ---------------------- ----------------------- DISTRIBUTIONS TO SHAREHOLDERS From net investment income (59,414) (11,391) From net realized gains (380,299) (34,483) ---------------------- ----------------------- Total distributions (439,713) (45,874) ---------------------- ----------------------- CAPITAL SHARE TRANSACTIONS Proceeds from shares sold 2,059,044 5,493,847 Reinvestment of distributions 438,814 45,673 Amount paid for shares repurchased (258,722) (385,290) ---------------------- ----------------------- Net increase in net assets resulting from capital share transactions 2,239,136 5,154,230 ---------------------- ----------------------- TOTAL INCREASE IN NET ASSETS 335,999 6,464,889 ---------------------- ----------------------- NET ASSETS Beginning of period 12,967,225 6,502,336 ---------------------- ----------------------- End of period [including accumulated undistributed net investment income of $436 and $33,577, respectively] $ 13,303,224 $ 12,967,225 ====================== ======================= CAPITAL SHARE TRANSACTIONS Shares sold 171,256 460,218 Shares issued in reinvestment of distributions 40,876 3,651 Shares repurchased (21,390) (31,407) ---------------------- ----------------------- Net increase (decrease) from capital transactions 190,742 432,462 ====================== =======================
GJMB GROWTH FUND FINANCIAL HIGHLIGHTS SIX MONTHS ENDED DECEMBER 31, 2000 YEAR ENDED PERIOD ENDED (UNAUDITED) JUNE 30, 2000 JUNE 30, 1999 (A) -------------------- ------------------- -------------------- SELECTED PER SHARE DATA Net asset value, beginning of period $ 12.68 $ 11.02 $ 10.00 -------------------- ------------------- -------------------- Income from investment operations Net investment income 0.02 0.05 0.02 Net realized and unrealized gain (1.34) 1.67 1.00 -------------------- ------------------- -------------------- Total from investment operations (1.32) 1.72 1.02 -------------------- ------------------- -------------------- Less distributions: From net investment income (0.05) (0.02) 0.00 From net realized gains (0.34) (0.04) 0.00 -------------------- ------------------- -------------------- Total distributions (0.39) (0.06) 0.00 -------------------- ------------------- -------------------- Net asset value, end of period $ 10.97 $ 12.68 $ 11.02 ==================== =================== ==================== TOTAL RETURN (10.06)%(c) 15.61% 10.20% (c) RATIOS AND SUPPLEMENTAL DATA Net assets, end of period (000) $13,303 $12,967 $6,502 Ratio of expenses to average net assets 1.20% (b) 1.20% 1.20% (b) Ratio of expenses to average net assets before reimbursement 1.22% (b) 1.22% 1.25% (b) Ratio of net investment income to average net assets 0.39% (b) 0.40% 0.34% (b) Ratio of net investment income to average net assets before reimbursement 0.37% (b) 0.38% 0.28% (b) Portfolio turnover rate 62.61% (b) 16.99% 24.26% (b) (a) December 31, 1998 (commencement of operations) to June 30, 1999. (b) Annualized (c) For a period of less than a full year, the total return is not annualized.
GJMB GROWTH FUND NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 2000 (UNAUDITED) NOTE 1. ORGANIZATION GJMB Growth Fund (the "Fund") was organized as a series of the AmeriPrime Funds (the "Trust") on October 22, 1998 and commenced operations on December 31, 1998. The Trust is established under the laws of Ohio by an Agreement and Declaration of Trust dated August 8, 1995 (the "Trust Agreement"). The Fund is registered under the Investment Company Act of 1940, as amended, as a non-diversified open-end management investment company. The Fund's investment objective is to provide long- term capital appreciation. 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 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 opinion of the Advisor (as such term is defined in note 3 of this document), 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. 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 - The Fund intends to qualify each year as a "regulated investment company" under the Internal Revenue Code of 1986, as amended. By so qualifying, the Fund will not be subject to federal income taxes to the extent that it distributes substantially all of its net investment income and any realized capital gains. DIVIDENDS AND DISTRIBUTIONS - The Fund intends to distribute substantially all of its net investment income as dividends to its shareholders on an annual basis. The Fund intends to distribute its net long-term capital gains and its net short-term capital gains at least once a year. OTHER - The Fund follows industry practice and records security transactions on the trade date. The specific identification method is used for determining gains or losses for financial statements and income tax purposes. Dividend income is recorded on the ex-dividend date and interest income is recorded on an accrual basis. Discounts and premiums on securities purchased are amortized over the life of the respective securities. GJMB GROWTH FUND NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 2000 (UNAUDITED) - CONTINUED NOTE 3. FEES AND OTHER TRANSACTIONS WITH AFFILIATES The Fund retains Gamble, Jones, Morphy & Bent (the "Advisor") to manage the Fund's investments. The Advisor became a registered investment advisor in 1956 and was reorganized as a California corporation in 1990. Thomas S. Jones, President of the Advisor, and Thomas W. Bent, Executive Vice President of the Advisor, own a majority of the Advisor's shares and may be deemed to have controlling interests. The investment decisions for the Fund are made by Gary A. Pulford under the guidance of the executive committee of the Advisor. While Mr. Pulford is responsible for the day-to-day management of the Fund's portfolio, the executive committee is actively involved in determining the overall make-up of the Fund. Under the terms of the management agreement (the "Agreement"), the Advisor manages the Fund's investments subject to approval of the Board of Trustees and pays all of the expenses of the Fund except brokerage fees and commissions, taxes, interest, fees and expenses of the non-interested person trustees, and extraordinary expenses. As compensation for its management services and agreement to pay the Fund's expenses, the Fund is obligated to pay the Advisor a fee of 1.20% of the average daily net assets of the Fund. 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 December 31, 2000 the Advisor received a fee of $80,827 from the Fund. The Advisor has contractually agreed to reimburse other expenses to the extent necessary to maintain total operating expenses at the rate of 1.20% through October 31, 2004. For the six months ended December 31, 2000, the Advisor reimbursed expenses of $1,029. There is no assurance that such reimbursement will continue beyond October 31, 2004. Effective October 12, 2000, AmeriPrime Financial Services, Inc. and Unified Fund Services, Inc. ("Unified"), both wholly owned subsidiaries of Unified Financial Services, Inc., merged with one another. Prior to the merger AmeriPrime Financial Services, Inc. served as Administrator to the Fund. The result of this merger is now Unified Fund Services, Inc., still a wholly owned subsidiary of Unified Financial Services, Inc. Certain members of management of Unified Fund Services, Inc. are also trustees and/or officers of the Trust. The Fund retains Unified to manage the Fund's business affairs and provide the Fund with administrative, transfer agency, and fund accounting services, including all regulatory reporting and necessary office equipment and personnel. The Advisor paid all administrative, transfer agency, and fund accounting fees on behalf of the Fund per the management agreement. Effective December 31, 2000, AmeriPrime Financial Securities, Inc. sold substantially all of its assets to Unified Financial Securities, Inc. Both companies are wholly owned subsidiaries of Unified Financial Services, Inc. Effective as of the same date, the Fund retained Unified Financial Securities, Inc. to act as the principal distributor of its shares. There were no payments made to the Distributor for the six months ended December 31, 2000. A Trustee and officer of the Trust may be deemed to be an affiliate of Unified Financial Securities, Inc. NOTE 4. INVESTMENTS For the six months ended December 31, 2000, purchases and sales of investment securities, other than short-term investments, aggregated $6,487,786 and $3,757,318, respectively. As of December 31, 2000, the gross unrealized appreciation for all securities totaled $1,553,384 and the gross unrealized depreciation for all securities totaled $1,380,415 for a net unrealized appreciation of $172,969. The aggregate cost of securities for federal income tax purposes at December 31, 2000 was $12,602,489. GJMB GROWTH FUND NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 2000 (UNAUDITED) - CONTINUED NOTE 5. 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 6. 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 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 December 31, 2000, Charles Schwab & Co. held 94.92% of the outstanding Fund shares in an omnibus account for the benefit of others. December 31, 2000 Dear Fellow Shareholders, First, here is a quick review of our strategy. The IMS Capital Value Fund employs a fundamental value approach, diversifying its holdings across all major sectors of the market. The Fund seeks to identify undervalued companies in opportunistic industries that are showing concrete signs of positive business momentum. In terms of last year's performance, 2000 was a year in which the major market averages posted significant declines. For the year ending December 31, 2000, the blue chip Dow Jones Industrial Average slid 6.18%, its worst yearly decline since 1990, the S & P 500 Index fell 10.14% and the tech-heavy NASDAQ dropped 39.29%. The IMS Capital Value Fund lost 4.73% over the same period. The Fund's return takes into account a 49-cent distribution of long-term capital gains on December 29, 2000. Since most shareholders choose to have their dividend and capital gain distributions reinvested, the effect of the distribution was a wash. Most shareholders now own more shares, but each share is worth less. The small distribution relative to the fund's NAV and its favorable tax treatment (100% long-term capital gain) demonstrate our continued emphasis on tax-efficiency. This emphasis is only important if you happen to hold the Fund in a taxable account. Because of the timing of the distribution, some brokerage custodians failed to correctly value the shares and/or the number of shares held, resulting in statements that may have understated the total value of your position in the Fund as of year-end. In order to avoid this situation going forward, we have taken steps to make sure any future distributions occur in early December. We are very optimistic on the market and on the prospects for the Fund's holdings for the coming year. In August of 2001, our fund will have a five-year track record, something we have been looking forward to for quite awhile. A warm thanks to all our loyal clients and shareholders; your dedication over this past year has not gone unnoticed. All of us at IMS sincerely appreciate the confidence and trust you have placed with us and we will continue working hard to earn it as we strive to make the IMS Capital Value Fund one of the most successful and respected funds in our industry. Sincerely, Carl W. Marker Portfolio Manager IMS Capital Value Fund Returns for the Periods Ended December 31, 2000 Average Average Annual Annual Return 3 Year Since Inception Fund/Index Six Months 1 Year Return (August 5, 1996) ---------- ---------- ------ ------- ---------------- IMS Capital Value Fund -9.52% -4.73% 8.31% 9.80% Russell Mid-Cap Value Index 20.02% 19.19% 7.75% 15.91%
Performance Summary December 31, 2000 Russell IMS Mid-Cap Capital Value Value Date Index Fund 8/5/96 $10,000 $10,000 9/30/96 $10,504 $10,500 12/31/96 $11,410 $11,140 3/31/97 $11,604 $11,720 6/30/97 $13,066 $12,450 9/30/97 $14,732 $13,220 12/31/97 $15,331 $11,888 3/31/98 $16,863 $13,602 6/30/98 $16,430 $13,235 9/30/98 $14,186 $11,209 12/31/98 $16,110 $13,462 3/31/99 $15,609 $13,979 6/30/99 $17,354 $15,693 9/30/99 $15,508 $13,623 12/31/99 $16,093 $15,855 3/31/00 $16,255 $17,392 6/30/00 $15,982 $16,696 9/30/00 $17,524 $16,492 12/31/00 $19,182 $15,106 IMS Capital Value Fund $15,106 Russell Mid-Cap Value Index $19,182 This graph shows the value of a hypothetical initial investment of $10,000 in the Fund and the Russell Mid-Cap Value Index on August 5, 1996 (inception of the Fund) and held through December 31, 2000. The index is an unmanaged group of stocks whose total return includes the reinvestment of any dividends and capital gain distributions, but does not reflect expenses, which have lowered the Fund's return. THE FUND'S RETURN REPRESENTS PAST PERFORMANCE AND IS NOT A GUARANTEE OF FUTURE RESULTS. Top Ten Holdings - December 31, 2000 Waste Management, Inc. 5.30% Conseco, Inc. 5.04% Pacificare Health Systems, Inc. - Class B 4.30% Chiron Corp. 4.25% T. Rowe Price Associates, Inc. 4.24% Gentiva Health Services, Inc. 4.22% Wm. Wrigley Jr. Co. 4.12% Novell, Inc. 3.99% Niagara Mohawk Holdings, Inc. 3.83% Officemax, Inc. 3.71% IMS Capital Value Fund Schedule of Investments - December 31, 2000 (Unaudited) Common Stocks - 92.3% Shares Value Accident & Health Insurance - 5.0% Conseco, Inc. 40,000 $ 527,500 -------------- Air Courier Services - 2.3% FedEx Corp. (a) 6,000 239,760 -------------- Computer Communications Equipment - 1.5% 3Com Corp. (a) 18,000 153,000 -------------- Computer Terminals - 1.6% Palm, Inc. (a) 5,932 167,950 -------------- Dolls & Stuffed Toys - 1.0% Marvel Enterprises, Inc. (a) 70,000 100,625 -------------- Electric & Other Services Combined - 3.8% Niagara Mohawk Holdings, Inc. (a) 24,000 400,500 -------------- Electrical Industrial Apparatus - 3.5% American Power Conversion, Inc. (a) 30,000 371,250 -------------- Fats & Oils - 3.6% Archer Daniels Midland Co. 25,000 375,000 -------------- Hospital & Medical Service Plans - 4.3% PacifiCare Health Systems, Inc. - Class B 30,000 450,000 -------------- National Commercial Banks - 2.9% Citigroup, Inc. 6,000 306,375 -------------- Petroleum Refining - 2.5% Pennzoil-Quaker State, Inc. 20,000 257,500 -------------- Pharmaceutical Preparations - 4.3% Chiron Corp. (a) 10,000 445,000 -------------- Radio & TV Broadcasting & Communications Equipment - 3.7% Gilat Satellite Networks Ltd. 8,000 204,000 Motorola, Inc. 9,000 182,250 -------------- 386,250 -------------- Refuse Systems - 5.3% Waste Management, Inc. 20,000 555,000 -------------- Retail - Hobby, Toy & Game Shops - 1.6% Toys R Us, Inc. (a) 10,000 166,875 -------------- Retail - Miscellaneous Shopping Goods Stores - 3.7% Officemax, Inc. 135,000 388,125 -------------- Security & Commodity Brokers, Dealers, Exchanges & Services - 4.2% T. Rowe Price Associates, Inc. 10,500 443,789 -------------- Security Brokers, Dealers & Flotation Companies - 2.8% Knight Trading Group, Inc. 21,000 292,687 -------------- IMS Capital Value Fund Schedule of Investments - December 31, 2000 (Unaudited) - continued Common Stocks - 92.3% - continued Shares Value Semiconductors & Related Devices - 6.2% Atmel Corp. 29,000 $ 337,125 Intel Corp. 4,000 120,250 LSI Logic Corp. 11,000 187,990 -------------- 645,365 -------------- Services - Computer Processing & Data Preparation - 2.6% DST Systems, Inc. (a) 4,000 268,000 -------------- Services - Help Supply Services - 4.2% Gentiva Health Services, Inc. (a) 33,000 441,375 -------------- Services - Personal Services - 5.4% Block (H&R), Inc. 9,000 372,375 Cendant Corp. (a) 20,000 192,500 -------------- 564,875 -------------- Services - Prepackaged Software - 8.2% Novell, Inc. (a) 80,000 417,504 Oracle Corp. (a) 6,000 174,375 Symantec Corp. (a) 8,000 267,000 -------------- 858,879 -------------- Sugar & Confectionery Products - 4.1% Wm. Wrigley Jr. Company 4,500 431,156 -------------- Telephone Communications (No Radio Telephone) - 4.0% AT&T Corp. 8,000 138,000 Centurytel, Inc. 8,000 286,000 -------------- 424,000 -------------- TOTAL COMMON STOCKS (Cost $8,835,474) $ 9,660,836 -------------- Principal Amount Value Money Market Securities - 6.7% Firstar Treasury Fund, 5.55% (b) (Cost $696,764) 696,764 $ 696,764 -------------- TOTAL INVESTMENTS - 99.0% (Cost $9,532,238) 10,357,600 -------------- Cash and other assets less liabilities - 1.0% 109,458 -------------- TOTAL NET ASSETS - 100.0% $ 10,467,058 ==============
(a) Non-income producing (b) Variable rate security; the coupon rate shown represents the rate at December 31, 2000. IMS Capital Value Fund December 31, 2000 Statement of Assets & Liabilities (Unaudited) Assets Investment in securities (cost $9,532,238) $ 10,357,600 Cash 126,672 Dividends receivable 4,935 Interest receivable 2,269 Receivable for fund shares sold 60,374 Deferred organization costs 7,591 ------------------ Total assets 10,559,441 ------------------ Liabilities Accrued investment advisory fee payable, net of waiver 422 Other payables and accrued expenses 9,586 Payable for fund shares repurchased 82,375 ------------------ Total liabilities 92,383 ------------------ Net Assets $ 10,467,058 ================== Net Assets consist of: Paid in capital $ 9,187,874 Accumulated net investment loss (31,412) Accumulated undistributed net realized gain on investments 485,234 Net unrealized appreciation on investments 825,362 ------------------ Net Assets, for 864,759 shares $ 10,467,058 ================== Net Asset Value Offering price and redemption price per share ($10,467,058 / 864,759) $ 12.10 ================== IMS Capital Value Fund Statement of Operations for the six months ended December 31, 2000 (Unaudited) Investment Income Dividend income $ 36,400 Interest income 21,723 ------------------- Total Income 58,123 ------------------- Expenses Investment advisory fee 70,953 Transfer agent fees [Note 3] 14,015 Administration fees [Note 3] 11,347 Pricing & bookkeeping fees [Note 3] 10,500 Audit fees 3,281 Legal fees 3,492 Amortization of organizational expenses 2,390 Custodian fees 2,155 Registration fees 1,143 Trustees' fees 1,061 Shareholder reports 1,000 Insurance 72 Miscellaneous expense 115 ------------------- Total expenses before reimbursement 121,524 Reimbursed expenses (31,989) ------------------- Total operating expenses 89,535 ------------------- Net Investment Loss (31,412) ------------------- Realized & Unrealized Gain (Loss) Net realized gain on investment securities 612,129 Change in net unrealized appreciation (depreciation) on investment securities (1,679,233) ------------------- Net realized and unrealized gain (loss) on investment securities (1,067,104) ------------------- Net decrease in net assets resulting from operations $ (1,098,516) ===================
IMS Capital Value Fund Statement of Changes in Net Assets Six Months Year Ended Ended December 31, 2000 June 30, (Unaudited) 2000 ----------------- ----------------- Increase (Decrease) in Net Assets Operations Net investment loss $ (31,412) $ (40,468) Net realized gain on investment securities 612,129 333,492 Change in net unrealized appreciation (depreciation) (1,679,233) 431,787 ----------------- ----------------- Net increase (decrease) in net assets resulting from operations (1,098,516) 724,811 ----------------- ----------------- Distributions to shareholders From net realized gain (405,947) (1,175,174) ----------------- ----------------- Total distributions (405,947) (1,175,174) ----------------- ----------------- Capital Share Transactions Net proceeds from sale of shares 535,586 918,215 Reinvestment of distributions 394,976 1,165,509 Amount paid for repurchase of shares (543,615) (1,656,678) ----------------- ----------------- Net increase in net assets resulting from capital share transactions 386,947 427,046 ----------------- ----------------- Total decrease in net assets (1,117,516) (23,317) Net Assets Beginning of period 11,584,574 11,607,891 ----------------- ----------------- End of period [including accumulated net investment loss of $31,412 and $0, respectively] $ 10,467,058 $ 11,584,574 ================= ================= Capital Share Transactions: Shares sold 39,922 67,647 Shares issued in reinvestment of distributions 32,642 89,723 Shares repurchased (40,475) (121,795) ----------------- ----------------- Net increase from capital transactions 32,089 35,575 ================= =================
IMS Capital Value Fund Financial Highlights C> Six months ended Period December 31, Year ended Period ended ended 2000 June 30, June 30, Years ended October 31, October 31, (Unaudited) 2000 1999(c) 1998 1997 1996(d) ------------ ---------- ----------- ------------- ------------ ------------- Selected Per Share Data Net asset value, beginning of period $ 13.91 $ 14.56 $ 11.28 $ 12.06 $ 10.76 $ 10.00 ------------ ------------ ------------- ------------- ------------- -------------- Income from investment operations: Net investment income (loss) (0.04) (0.05) 0.00 (0.06) (0.08) (0.01) Net realized and unrealized gain (1.28) 0.88 3.28 0.12 1.38 0.77 ------------ ------------- ------------- -------------- -------------- ------------- Total from investment operations (1.32) 0.83 3.28 0.06 1.30 0.76 ------------ ------------- ------------- -------------- -------------- ------------- From net investment income 0.00 0.00 0.00 (0.03) 0.00 0.00 From net realized gain (0.49) (1.48) 0.00 (0.81) 0.00 0.00 ------------- ------------- ------------- -------------- -------------- ------------- Total distributions (0.49) (1.48) 0.00 (0.84) 0.00 0.00 ------------- ------------- ------------- -------------- -------------- ------------- Net asset value, end of period $ 12.10 $ 13.91 $ 14.56 $ 11.28 $ 12.06 $ 10.76 ============= ============= ============= ============== ============== ============= Total Return (9.52)%(b) 6.39% 29.08% (b) 2.27% 12.08% 7.60%(b) Ratios and Supplemental Data Net assets, end of period (000) $10,467 $11,585 $11,608 $11,524 $9,932 $4,741 Ratio of expenses to average net assets 1.59% (a) 1.59% 1.59% (a) 1.73% 1.97% 1.84%(a) Ratio of expenses to average net assets before reimbursement 2.16% (a) 2.08% 2.50% (a) 2.34% 2.54% 3.92%(a) Ratio of net investment income (loss) to average net assets (0.56)%(a) (0.36)% (0.04)%(a) (0.53)% (0.64)% (0.25)%(a) Ratio of net investment income (loss) to average net assets before reimbursement (1.13)%(a) (0.84)% (0.95)%(a) (1.14)% (1.20)% (2.32)%(a) Portfolio turnover rate 82.90% (a) 75.69% 68.16% (a) 81.74% 34.76% 3.56%(a)
(a) Annualized (b) For a period of less than a full year, the total return is not annualized. (c) For the period November 1, 1999 through June 30, 1999. (d) August 5, 1996 (commencement of operations) to October 31, 1996 See accompanying notes which are an integral part of the financial statements. IMS Capital Value Fund Notes To Financial Statements December 31, 2000 (Unaudited) NOTE 1. ORGANIZATION IMS Capital Value Fund (the "Fund") was organized as a series of the AmeriPrime Funds (the "Trust") on July 29, 1996, and commenced operations on August 5, 1996. The Trust is established under the laws of Ohio by an Agreement and Declaration of Trust dated August 8, 1995 (the "Trust Agreement"). The Fund is registered under the Investment Company Act of 1940, as amended, as a diversified, open-end management investment company. The Fund's investment objective is to provide long-term growth. 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 the Fund in the preparation of its financial statements. Securities Valuation - Securities which are traded on any exchange or on the NASDAQ over-the-counter market are valued at the last quoted sale price. Lacking a last sale price, a security is valued at its last bid price except when, in the opinion of the Advisor (as such term is defined in note 3 of this document), 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. 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 values of such securities. A pricing service utilizes electronic data processing techniques based on yield spreads relating to securities with similar characteristics to determine prices for normal 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 - The Fund intends to qualify each year as a "regulated investment company" under the Internal Revenue Code of 1986, as amended. By so qualifying, the Fund will not be subject to federal income taxes to the extent that it distributes substantially all of its net investment income and any realized capital gains. Dividends and Distributions - The Fund intends to distribute substantially all of its net investment income as dividends to its shareholders on an annual basis. The Fund intends to distribute its net long-term capital gains and its net short-term capital gains at least once a year. Other - The Fund follows industry practice and records security transactions on the trade date. The specific identification method is used for determining gains or losses for financial statements and income tax purposes. Dividend income is recorded on the ex-dividend date and interest income is recorded on an accrual basis. 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 reclassed to paid in capital. IMS Capital Value Fund Notes To Financial Statements December 31, 2000 (Unaudited) - continued NOTE 3. FEES AND OTHER TRANSACTIONS WITH AFFILIATES The Fund retains IMS Capital Management, Inc. (the "Advisor") to manage the Fund's investments. Carl W. Marker, Chairman and President of the Advisor, is primarily responsible for the day-to-day management of the Fund's portfolio. Under the terms of the management agreement, (the "Agreement"), the Advisor manages the Fund's investments subject to approval of the Board of Trustees. As compensation for its management services, the Fund is obligated to pay the Advisor a fee computed and accrued daily and paid monthly at an annual rate of 1.26% of the average daily net assets of the Fund. For the six months ended December 31, 2000 the Advisor received fees of $70,953 from the Fund. The Advisor has contractually agreed to reimburse Fund expenses to the extent necessary to maintain total operating expenses at the rate of 1.59% of net assets through October 31, 2004. For the six months ended December 31, 2000 the Advisor reimbursed expenses of $31,989. There is no assurance that such arrangement will continue in the future. Effective October 12, 2000, AmeriPrime Financial Services, Inc. and Unified Fund Services, Inc., both wholly owned subsidiaries of Unified Financial Services, Inc., merged with one another. Prior to the merger, AmeriPrime Financial Services, Inc. served as Administrator to the Fund. The result of this merger is now Unified Fund Services, Inc. ("Unified"), still a wholly owned subsidiary of Unified Financial Services, Inc. A Trustee and the officers of the Trust are members of management and/or employees of Unified. The Fund retains Unified to manage the Fund's business affairs and provide the Fund with administrative services, including all regulatory reporting and necessary office equipment and personnel. Unified receives a monthly fee from the Fund equal to an annual rate of 0.20% of the Fund's assets with no monthly minimum. The Fund also retains Unified to act as the Fund's transfer agent and fund accountant. For its services as transfer agent, Unified receives a monthly fee from the Fund of $1.20 per shareholder (subject to a minimum monthly fee of $750). For its services as fund accountant, Unified receives an annual fee from the Fund 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 million to $100 million). Effective December 31, 2000, AmeriPrime Financial Securities, Inc. sold substantially all of its assets to Unified Financial Securities, Inc. Both companies are wholly owned subsidiaries of Unified Financial Services, Inc. Effective as of the same date, the Fund retained Unified Financial Securities, Inc. to act as the principal distributor of its shares. There were no payments made to the Distributor for the six months ended December 31, 2000. A Trustee and officer of the Trust may be deemed to be an affiliate of Unified Financial Securities, Inc. NOTE 4. INVESTMENTS For the six months ended December 31, 2000, purchases and sales of investment securities, other than short-term investments, aggregated $4,299,935 and $4,896,651, respectively. The gross unrealized appreciation for all securities totaled $1,979,635 and the gross unrealized depreciation for all securities totaled $1,154,273 for a net unrealized appreciation of $825,362. The aggregate cost of securities for federal income tax purposes at December 31, 2000 was $9,532,238. IMS Capital Value Fund Notes To Financial Statements December 31, 2000 (Unaudited) - continued NOTE 5. 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.
JUMPER STRATEGIC ADVANTAGE FUND SCHEDULE OF INVESTMENTS As of December 31, 2000 (Unaudited) CONVERTIBLE PREFERRED STOCKS - 0.4% number of shares market value 500 TXU Corp. 9.25% (Cost $22,983) $ 25,219 ----------------- NOTES - 99.6% par value market value CORPORATE BONDS - 77.5% 125,000 Beneficial Corp. 6.28%, 1/15/2002 125,147 75,000 Comdisco, Inc. 7.23%, 8/16/2001 70,268 200,000 Comdisco, Inc. 7.25%, 9/1/2002 171,000 50,000 Comdisco, Inc. SR NT 5.75%, 2/15/2001 49,250 75,000 Cox Communications, Inc. 6.864%, 8/15/2001 74,837 50,000 Donaldson Lufkin J. 6.25%, 8/01/2001 50,013 75,000 EOP Operating LP 6.376%, 2/15/2002 74,597 250,000 Finova Capital Corp. 6.625%, 9/15/2001 171,250 250,000 Ford Credit Corp. 8.00%, 06/01/2002 255,529 50,000 General Motors Acceptance Corp. 9.125%, 7/15/2001 50,712 75,000 General Motors Acceptance Corp. 6.00%, 2/01/2002 74,822 310,000 General Motors Acceptance Corp. 6.40%, 8/30/2001 310,486 400,000 Hertz Corp. 7.375%, 6/15/2001 400,543 325,000 ICI Wilmington, Inc. 6.75%, 9/15/2002 324,279 125,000 International Lease Financial Corp. 6.375%, 2/15/2002 125,489 250,000 Leman Brothers, Inc. 7.00%, 10/1/2002 252,770 50,000 Leman Brothers Holdings, Inc. 6.90%, 3/30/2001 50,070 100,000 Lockheed Martin 6.85%, 5/15/2001 99,936 125,000 MBNA Corp. 6.12%, 8/13/2001 124,790 50,000 Midlantic Corp. 9.20%, 8/01/2001 50,815 75,000 Paine Webber Group 9.25%, 12/15/2001 77,201 50,000 Paine Webber Group 6.585%, 7/23/2001 50,137 50,000 Philip Morris Co. 9.00%, 1/01/2001 50,000 150,000 Popular, Inc. 6.20%, 4/30/2001 149,903 75,000 Raytheon Co. 5.95%, 3/15/2001 74,782 75,000 Ryder System, Inc. 6.67%, 8/30/2001 74,464 100,000 Sherwin-Williams Co. 6.50%, 2/01/2002 99,800 270,000 Tyco International Group 6.125%, 6/15/2001 268,987 625,000 USG Corp. 9.25%, 9/15/2001 584,389 325,000 Westinghouse Electric Corp. 8.875%, 6/01/2001 327,452 124,000 Williams Cos., Inc. 6.50%, 11/15/2002 123,957 75,000 Xerox Corp. 8.125%, 4/15/2002 51,375 250,000 Xerox Corp. 5.75%, 5/15/2002 176,093 ----------------- 5,015,143 ----------------- AGENCY OBLIGATIONS -15.9% 525,000 Federal Home Loan Bank 7.78%, 2/04/2003 532,713 500,000 Federal National Mortgage Association 5.21%, 9/11/2001 497,521 ----------------- ----------------- 1,030,234 ----------------- JUMPER STRATEGIC ADVANTAGE FUND SCHEDULE OF INVESTMENTS - continued As of December 31, 2000 (Unaudited) NOTES - 99.6% par value market value U. S. GOVERNMENT SECURITIES - 6.2% 400,000 U. S. Treasury Note 5.625%, 11/30/2002 403,406 ----------------- Total Notes (cost $6,669,848) 6,448,783 ----------------- TOTAL INVESTMENTS - 100.0% (identified cost $6,692,831) $ 6,474,002 ----------------- Liabilities in Excess of Other Assets - (0.0)% (1,162) ----------------- NET ASSETS - 100.0% $ 6,472,840 =================
JUMPER STRATEGIC ADVANTAGE FUND STATEMENT OF ASSETS AND LIABILITIES As of December 31, 2000 (Unaudited) ASSETS amount Investments in Securities at Value (identified cost $6,692,831 ) $ 6,474,002 Interest Receivable 104,605 -------------- Total Assets 6,578,607 -------------- LIABILITIES amount Payable to Custodian Bank 70,108 Accrued Dividend 28,537 Accrued Investment Advisory Fee 3,976 Accrued 12b-1 Fees 3,146 -------------- Total Liabilities 105,767 -------------- NET ASSETS amount Class A Shares: Net Assets $ 4,635,568 Net Asset Value, Offering price and redemption price per share ($4,635,568/ 2,439,749) $ 1.90 -------------- Class B Shares: Net Assets $ 1,837,272 Net Asset Value, Offering price and redemption price per share ($1,837,272/ 968,780) $ 1.90 -------------- Net Assets 6,472,840 ============== SOURCES OF NET ASSETS At December 31, 2000, Net Assets Consisted of: Paid-in Capital 6,781,792 Net Undistributed Investment Income 975 Net Accumulated Realized Gain on Investments (91,098) Net Unrealized Depreciation in Value of Investments (218,829) -------------- Net Assets $ 6,472,840 ==============
JUMPER STRATEGIC ADVANTAGE FUND STATEMENT OF OPERATIONS For the Six Months Ended December 31, 2000 (Unaudited) INVESTMENT INCOME amount Interest $ 247,027 Miscellaneous 1,203 --------------- Total Investment Income 248,230 --------------- EXPENSES amount Investment Advisory Fee 25,447 Trustees' Fees 1,065 12b-1 fee - Investor Class 2,169 --------------- Total Expenses 28,681 =============== Expenses Waived and Reimbursed by Advisor (1,065) Total Net Expenses 27,616 --------------- Net Investment Income 220,614 =============== REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS amount Net Realized Gain on Investments 684 Change in Net Unrealized Depreciation of Investment Securities (172,959) --------------- --------------- Net Realized and Unrealized Loss on Investment Securities (172,275) --------------- Net Increase in Net Assets Resulting from Operations $ 48,339 ===============
JUMPER STRATEGIC ADVANTAGE FUND STATEMENT OF CHANGES IN NET ASSETS INCREASE (DECREASE) IN NET ASSETS six months ended fiscal year ended Dec. 31, 2000 June 30, 2000 (Unaudited) Operations: Net Investment Income $ 220,614 $ 175,124 Net Realized Gain (Loss) on Investments 684 (47,236) Net Change in Unrealized Appreciation (Depreciation) of Investments (172,959) 16,592 ------------------ ------------------- Increase in Net Assets (resulting from operations) 48,339 144,480 ------------------ ------------------- Distributions to Shareholders: Net Income Institutional Class (164,832) (135,783) Investor Class (54,860) (39,341) Return of Capital Institutional Class - (6,251) Investor Class - (1,321) ------------------ ------------------- Total Distribution (219,692) (182,696) ------------------ ------------------- Capital Share Transactions: Proceeds from Shares Sold: Institutional Class 2,242,391 8,552,211 Investor Class 100,019 5,154,398 Dividends Reinvested: Institutional Class 140,872 124,782 Investor Class 50,044 39,887 Cost of Shares Redeemed: Institutional Class (2,020,636) (6,690,034) Investor Class (1,122) (3,439,544) ------------------ ------------------- Increase in Net Assets (resulting from capital share transactions) 511,568 3,741,700 ------------------ ------------------- Total Increase in Net Assets 340,215 3,703,484 ================== =================== Net Assets: Beginning of Year 6,132,625 2,429,141 ------------------ ------------------- End of Year [Including accumulated net investment income of $0 and $975, respectively] $ 6,472,840 $ 6,132,625 ------------------ ------------------- Shares of Capital Stock of the Fund Sold and Redeemed: Shares Sold: Institutional Class 1,153,807 4,365,368 Investor Class 53,773 2,634,172 Shares Reinvested: Institutional Class 73,228 63,429 Investor Class 26,025 20,488 Shares Redeemed: Institutional Class (1,038,548) (3,414,110) Investor Class (605) (1,765,074) ------------------ ------------------- Net Increase in Number of Shares Outstanding 267,680 1,904,273 ================== ===================
JUMPER STRATEGIC ADVANTAGE FUND FINANCIAL HIGHLIGHTS The table below sets forth financial data for one share of capital stock outstanding throughout each period presented. Institutional Class six months year period ended ended ended 12/31/00 6/30/00 6/30/99 (A) (Unaudited) Per Share Operating Performance: Net Asset Value at Beginning of Period $ 1.95 $ 1.96 $ 2.00 Income from Investment Operations: Net Investment Income 0.06 0.11 0.05 Net Realized and Unrealized Loss on Investments (0.05) (0.01) (0.04) --------------- --------------- --------------- Total from Investment Operations 0.01 0.10 0.01 --------------- --------------- --------------- Less Distributions: Dividends from Net Investment Income (0.06) (0.10) (0.05) Dividends from Return of Capital - (0.01) - --------------- --------------- --------------- Total Distributions (0.06) (0.11) (0.05) --------------- --------------- --------------- Net Asset Value at End of Period $ 1.90 $ 1.95 $ 1.96 =============== =============== =============== Total Return 0.74% (B) 5.17% 0.51% (B) Ratios/Supplemental Data: Net Assets, End of Period (in 000s) $ 4,636 $ 4,399 $ 2,429 Ratio of Expenses to Average Net Assets: Before Reimbursement of Expenses by Advisor 0.78% (C) 0.82% 0.85% (C) After Reimbursement of Expenses by Advisor 0.75% (C) 0.75% 0.75% (C) Ratio of Net Investment Income to Average Net Assets: Before Reimbursement of Expenses by Advisor 6.53% (C) 5.58% 3.79% (C) After Reimbursement of Expenses by Advisor 6.56% (C) 5.65% 3.89% (C) Portfolio Turnover 11.37% (C) 187.73% 255.18% (C) (A) For the Period October 26, 1998 (Commencement of Operations) to June 30, 1999. (B) For periods of less than a full year, total return is not annualized. (C) Annualized.
JUMPER STRATEGIC ADVANTAGE FUND FINANCIAL HIGHLIGHTS The table below sets forth financial data for one share of capital stock outstanding throughout each period presented. Investor Class six months period ended ended 12/31/00 6/30/00 (A) (Unaudited) Per Share Operating Performance: Net Asset Value at Beginning of Period $ 1.95 $ 1.98 Income from Investment Operations: Net Investment Income 0.06 0.08 Net Realized and Unrealized Loss on Investments (0.05) (0.03) -------------- --------------- Total from Investment Operations 0.01 0.05 -------------- --------------- Less Distributions: Dividends from Net Investment Income (0.06) (0.08) Dividends from Return of Capital - - -------------- --------------- Total Distributions (0.06) (0.08) -------------- --------------- Net Asset Value at End of Period $ 1.90 $ 1.95 ============== =============== Total Return 0.62% (B) 2.49% (B) Ratios/Supplemental Data: Net Assets, End of Period (in 000s) $ 1,837 $ 1,734 Ratio of Expenses to Average Net Assets: Before Reimbursement of Expenses by Advisor 1.03% (C) 1.04% (C) After Reimbursement of Expenses by Advisor 1.00% (C) 1.00% (C) Ratio of Net Investment Income to Average Net Assets: Before Reimbursement of Expenses by Advisor 6.30% (C) 5.82% (C) After Reimbursement of Expenses by Advisor 6.34% (C) 5.87% (C) Portfolio Turnover 11.37% (C) 187.73% (C) (A) For the Period November 2, 1999 (Commencement of Operations) to June 30, 1999. (B) For periods of less than a full year, total return is not annualized. (C) Annualized.
NOTES TO FINANCIAL STATEMENTS December 31, 2000 (Unaudited) JUMPER STRATEGIC ADVANTAGE FUND NOTE 1. ORGANIZATION Jumper Strategic Advantage Fund (the "Fund") was organized as a series of the AmeriPrime Funds, an Ohio business trust (the "Trust"), on February 26, 1998 and commenced operations on October 26, 1998. The Fund is registered under the Investment Company Act of 1940, as amended, as a diversified, open-end management investment company, whose investment objective is to provide current income with a low amount of share price fluctuation. The Trust Agreement permits the trustees to issue an unlimited number of shares of beneficial interest of separate series without par value. The Fund currently offers two classes of shares: "Institutional Class" shares and "Investor Class" shares. The classes differ as follows: 1) Investor Class shares pay 12b-1 expenses of 0.25%, and 2) each class may bear differing amounts of certain class specific expenses. 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 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, subject to review of the Board of Trustees of the Trust. Fixed income securities generally are valued by using market quotations, but may be valued on the basis of prices furnished by a pricing service when the 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 Fund's advisor, subject to review of the Board of Trustees. Short term investments in fixed income securities with maturities of less than 60 days when acquired, or which subsequently are within 60 days of maturity, are valued by using the amortized cost method of valuation, which the Board has determined will represent fair value. FEDERAL INCOME TAXES - The Fund intends to qualify each year as a "regulated investment company" under the Internal Revenue Code of 1986, as amended. By so qualifying, the Fund will not be subject to federal income taxes to the extent that it distributes substantially all of its net investment income and any realized capital gains. The Fund intends to pay dividends to avoid all income and excise taxes. At December 31, 2000, the Fund has a capital loss carryforward of $91,782; $44,546 expiring in 2006, and $47,236 expiring in 2007. DIVIDENDS AND DISTRIBUTIONS - The Fund intends to distribute substantially all of its net investment income as dividends to its shareholders on a daily basis and to pay such dividends monthly. The Fund intends to distribute its net long-term capital gains and its net short-term capital gains at least once a year. NOTES TO FINANCIAL STATEMENTS December 31, 2000 (Unaudited) Continued JUMPER STRATEGIC ADVANTAGE FUND NOTE 2. SIGNIFICANT ACCOUNTING POLICIES - CONTINUED OTHER - The Fund follows industry practice and records security transactions on the trade date. The specific identification method is used for determining gains or losses for financial statements and income tax purposes. Dividend income is recorded on the ex-dividend date and interest income is recorded on an accrual basis. Discounts and premiums on securities purchased are amortized over the life of the respective securities. NOTE 3. FEES AND OTHER TRANSACTIONS WITH AFFILIATES The Fund retains The Jumper Group, Inc. (the "Advisor") to manage the Fund's investments. Jay Colton Jumper, the Fund's portfolio manager, is primarily responsible for the day to day management of the Fund's portfolio. Under the terms of the management agreement, (the "Agreement"), the Advisor manages the Fund's investments subject to approval of the Board of Trustees and pays all expenses of the Fund except brokerage fees and commissions, distribution fees (12b-1) for the Investor class, taxes, interest, fees and expenses of non-interested person trustees, and extraordinary expenses. As compensation for its management services and agreement to pay the Fund's expenses, the Fund is obligated to pay the Advisor a fee computed and accrued daily and paid monthly at an annual rate of 0.75% of the average daily net assets of the Fund. 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 December 31, 2000, the Advisor has received a fee of $25,447 from the Fund. The Advisor has voluntarily agreed to reimburse other expenses to the extent necessary to maintain total operating expenses at the rate of 0.75% for the Institutional Class and 1.00% for the Investor Class. For the six months ended December 31, 2000, the Advisor reimbursed expenses of $1,065. There is no assurance that such reimbursement will continue in the future. Effective October 12, 2000, AmeriPrime Financial Services, Inc. and Unified Fund Services, Inc., both wholly owned subsidiaries of Unified Financial Services, Inc., merged with one another. Prior to the merger AmeriPrime Financial Services, Inc. served as Administrator to the Fund. The result of this merger is now Unified Fund Services, Inc.("Unified"), still a wholly owned subsidiary of Unified Financial Services, Inc. A Trustee and the officers of the Trust are members of management and/or employees of Unified. The Fund retains Unified to manage the Fund's business affairs and provide the Fund with administrative, transfer agency, and fund accounting services, including all regulatory reporting and necessary office equipment and personnel. The Advisor paid all administrative, transfer agency, and fund accounting fees on behalf of the Fund per the management agreement. Effective December 31, 2000, AmeriPrime Financial Securities, Inc. sold substantially all of its assets to Unified Financial Securities, Inc. Both companies are wholly owned subsidiaries of Unified Financial Services, Inc. Effective as of the same date, the Fund retained Unified Financial Securities, Inc. to act as the principal distributor of its shares. There were no payments made to the Distributor for the six months ended December 31, 2000. A Trustee and officer of the Trust may be deemed to be an affiliate of Unified Financial Securities, Inc. NOTES TO FINANCIAL STATEMENTS December 31, 2000 (Unaudited) Continued JUMPER STRATEGIC ADVANTAGE FUND NOTE 3. FEES AND OTHER TRANSACTIONS WITH AFFILIATES - CONTINUED The Investor Class has adopted a Distribution Plan pursuant to Rule 12b-1 under the 1940 Act (the "Plan"). The Plan for the Investor Class 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. For the six months ended December 31, 2000, the Investor shares paid $2,169 in 12b-1 fees incurred by the Fund. NOTE 4. INVESTMENTS For the six months ended December 31, 2000, purchases and sales of investment securities, other than short-term investments, aggregated $1,984,831 and $330,000, respectively. As of December 31, 2000, the gross unrealized appreciation for all securities totaled $32,885 and the gross unrealized depreciation for all securities totaled $251,714 for a net unrealized depreciation of $218,829. The aggregate cost of securities for federal income tax purposes at December 31, 2000 was $6,692,831. NOTE 5. 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 6. 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 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 December 31, 2000, Bear Sterns Securities Corp. for the benefit of its customers, beneficially owned more than 93% of the Investor shares of the Fund and Dawn K. Bullard beneficially owned more than 50% of the Institutional shares of the Fund.