-----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, Shq/DZBYka7OUtBCAwor4WBz25WR144k0vgPJLnahcBLhoN18XMC0C1chEnGSNQi 8Z8BDH3o/bIsIHSVoVy0Qg== 0001035449-02-000334.txt : 20020828 0001035449-02-000334.hdr.sgml : 20020828 20020828114653 ACCESSION NUMBER: 0001035449-02-000334 CONFORMED SUBMISSION TYPE: N-30D PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 20020630 FILED AS OF DATE: 20020828 FILER: COMPANY DATA: COMPANY CONFORMED NAME: AMERIPRIME FUNDS CENTRAL INDEX KEY: 0001000579 IRS NUMBER: 752616671 STATE OF INCORPORATION: OH FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: N-30D SEC ACT: 1940 Act SEC FILE NUMBER: 811-09096 FILM NUMBER: 02750586 BUSINESS ADDRESS: STREET 1: 1793 KINGSWOOD DR STREET 2: STE 200 CITY: SOUTHLAKE STATE: TX ZIP: 76092 BUSINESS PHONE: 8174311297 MAIL ADDRESS: STREET 1: 1793 KINGSWOOD DRIVE STREET 2: SUITE 200 CITY: SOUTHLAKE STATE: TX ZIP: 76092 N-30D 1 arigjmbn30d.txt GJMB AND ARISITON N30D GJMB Growth Fund Schedule of Investments June 30, 2002 (Unaudited) Common Stocks - 67.3% Shares Value Aircraft - 3.5% Boeing Co. 9,000 $ 405,000 ---------------- Beverages - 3.1% Coca-Cola Co. 6,500 364,000 ---------------- Biological Products (No Diagnostic Substances) - 2.5% Amgen, Inc. 7,000 293,160 ---------------- Computer Storage Devices - 1.3% EMC Corp. 20,000 151,000 ---------------- Computers & Office Equipment - 1.8% International Business Machines Corp. 3,000 216,000 ---------------- Electronic & Other Electrical Equipment (No Computer Equipment) - 3.0% General Electric Co. 12,000 348,600 ---------------- Electronic Computers - 1.0% Sun Microsystems, Inc. 22,500 112,725 ---------------- Finance Services - 2.2% Morgan Stanley Dean Witter & Co. 6,000 258,480 ---------------- Fire, Marine, Casualty Insurance - 3.0% American International Group, Inc. 5,200 354,796 ---------------- Motor Vehicles & Passenger Car Bodies - 3.0% Ford Motor Co. 22,000 352,000 ---------------- National Commercial Banks - 2.6% U.S. Bancorp 13,000 303,550 ---------------- Oil & Gas - 2.6% Royal Dutch Petroleum Co. (c) 5,500 303,985 ---------------- Paper Mills - 3.1% Kimberly-Clark Corp. 5,800 359,600 ---------------- Petroleum Refining - 1.9% ChevronTexaco Corp. 2,500 221,250 ----------------
See accompanying notes which are an integral part of the financial statements. GJMB Growth Fund Schedule of Investments June 30, 2002 (Unaudited) - continued Common Stocks - 67.3% - continued Shares Value Pharmaceutical Preparations - 13.9% Abbott Laboratories, Inc. 7,000 $ 263,550 Bristol-Myers Squibb, Inc. 10,000 257,000 Eli Lilly and Co. 4,500 253,800 Johnson & Johnson 5,000 261,300 Merck & Co., Inc. 5,500 278,520 Pfizer, Inc. 9,000 315,000 --------------- 1,629,170 ---------------- Radio & TV Broadcasting & Communications Equipment - 1.8% Motorola, Inc. 14,500 209,090 ---------------- Radiotelephone Communications - 1.2% AT&T Wireless Services, Inc. (a) 25,000 146,250 ---------------- Savings Institutions, Not Federally Chartered - 3.2% Washington Mutual, Inc. 10,200 378,522 ---------------- Semiconductors & Related Devices - 2.5% Intel Corp. 9,000 164,430 Texas Instruments, Inc. 5,700 135,090 ---------------- 299,520 ---------------- Services - Miscellaneous Amusement & Recreation - 2.5% Walt Disney Co. 15,500 292,950 --------------- Services - Prepackaged Software - 4.7% Microsoft Corp. (a) 7,000 378,840 Oracle Corp. (a) 18,000 170,460 ---------------- 549,300 ---------------- Telephone Communications (No Radiotelephone) - 2.9% AT&T Wireless Corp. 14,000 149,800 Verizon Communications, Inc. 5,000 200,750 ---------------- 350,550 ---------------- TOTAL COMMON STOCKS (Cost $9,818,477) 7,899,498 ----------------
See accompanying notes which are an integral part of the financial statements. GJMB Growth Fund Schedule of Investments June 30, 2002 (Unaudited) - continued Principle Value Value Money Market Securities - 32.7% Huntington Money Fund-Investment A, 0.76%,(Cost $3,832,501)(b) 3,832,501 $ 3,832,501 ---------------- TOTAL INVESTMENTS (Cost $13,650,978) - 100.0% 11,731,999 ---------------- Cash and other assets less liabilities - 0.0% 1,475 ---------------- TOTAL NET ASSETS - 100.0% $ 11,733,474 ================ (a) Non-income producing. (b) Variable rate security; the coupon rate shown represents the rate at June 30, 2002. (c) American Depositary Receipt
See accompanying notes which are an integral part of the financial statements. GJMB Growth Fund Statement of Assets and Liabilities June 30, 2002 (Unaudited) Assets Investments in securities, at value (cost $13,650,978) $ 11,731,999 Cash 34 Interest receivable 2,404 Dividends receivable 10,765 Total assets 11,745,202 ----------------- Liabilities Accrued advisory fees 11,728 Total liabilities 11,728 ----------------- Net Assets $ 11,733,474 ================= Net Assets consist of: Paid in capital 14,796,301 Accumulated net investment income (loss) 2,296 Accumulated net realized gain (loss) on investments (1,146,144) Net unrealized appreciation (depreciation) on investments (1,918,979) ----------------- Net Assets, for 1,349,650 shares $ 11,733,474 ================= Net Asset Value Offering price and redemption price per share ($11,733,474 / 1,349,650) $ 8.69 =================
See accompanying notes which are an integral part of the financial statements. GJMB Growth Fund Statement of Operations Six months ended June 30, 2002 (Unaudited) Investment Income Dividend income $ 59,100 Interest income 16,550 ---------------- Total Income 75,650 ---------------- Expenses Investment advisor fee 73,354 Trustee expenses 1,031 ---------------- Total Expenses 74,385 Reimbursed expenses (1,031) ---------------- Total operating expenses 73,354 ---------------- Net Investment Income (Loss) 2,296 ---------------- Realized & Unrealized Gain (Loss) Net realized gain (loss) on investment securities (420,431) Change in net unrealized appreciation (depreciation) on investment securities (891,095) ---------------- Net realized and unrealized gain (loss) on investment securities (1,311,526) ---------------- Net increase (decrease) in net assets resulting from operations $ (1,309,230) ================
See accompanying notes which are an integral part of the financial statements. GJMB Growth Fund Statement of Changes In Net Assets Period Ended Period Ended June 30, 2002 December 31, Increase (Decrease) in Net Assets (Unaudited) 2001 (a) ----------------- ------------------- Operations Net investment income (loss) $ 2,296 $ 16,230 Net realized gain (loss) on investment securities (420,431) (689,364) Change in net unrealized appreciation (depreciation) (891,095) 280,375 ----------------- ------------------- Net increase (decrease) in net assets resulting from operations (1,309,230) (392,759) ----------------- ------------------- Distributions From net investment income - (55,707) From net realized gain - (13,468) ----------------- ------------------- Total distributions - (69,175) ----------------- ------------------- Capital Share Transactions Proceeds from shares sold 2,371,032 259,944 Reinvestment of distributions - 68,431 Amount paid for shares repurchased (1,336,145) (555,291) ----------------- ------------------- Net increase (decrease) in net assets resulting from share transactions 1,034,887 (226,916) ----------------- ------------------- Total Increase (Decrease) in Net Assets (274,343) (688,850) ----------------- ------------------- Net Assets Beginning of period 12,007,817 12,696,667 ----------------- ------------------- End of period [including accumulated net investment income (loss) of $2,296 and $0, respectively] $ 11,733,474 $ 12,007,817 ================= =================== Capital Share Transactions Shares sold 247,076 26,914 Shares issued in reinvestment of distributions - 7,143 Shares repurchased (140,748) (58,963) ----------------- ------------------- Net increase (decrease) from capital transactions 106,328 (24,906) ================= =================== (a) The Fund elected to change its fiscal year to December 31. The figures shown are for the period July 1, 2001 through December 31, 2000.
See accompanying notes which are an integral part of the financial statements. GJMB Growth Fund Financial Highlights Period ended Period ended Year ended Year ended Period ended June 30, 2002 December 31, June 30, June 30, June 30, (Unaudited) 2001 (d) 2001 2000 1999 (c) ------------- ------------------ ------------- -------------- ---------------- Selected Per Share Data Net asset value, beginning of period $ 9.66 $ 10.01 $ 12.68 $ 11.02 $ 10.00 ------------- ------------------ ------------- -------------- ---------------- Income from investment operations Net investment income (loss) 0.00 0.01 0.05 0.05 0.02 Net realized and unrealized gain (loss) (0.97) (0.30) (2.33) 1.67 1.00 ------------- ------------------ ------------- -------------- ---------------- Total from investment operations (0.97) (0.29) (2.28) 1.72 1.02 ------------- ------------------ ------------- -------------- ---------------- Less Distributions to shareholders: From net investment income 0.00 (0.05) (0.05) (0.02) 0.00 From net realized gain 0.00 (0.01) (0.34) (0.04) 0.00 ------------- ------------------ ------------- -------------- ---------------- Total distributions 0.00 (0.06) (0.39) (0.06) 0.00 ------------- ------------------ ------------- -------------- ---------------- Net asset value, end of period $ 8.69 $ 9.66 $ 10.01 $ 12.68 $ 11.02 ============= ================== ============= ============== ================ Total Return (10.04)(b) (2.93)(b) (18.19)% 15.61% 10.20% (b) Ratios and Supplemental Data Net assets, end of period (000) $11,733 $12,008 $12,697 $12,967 $6,502 Ratio of expenses to average net assets 1.20% (a) 1.20% (a) 1.20% 1.20% 1.20% (a) Ratio of expenses to average net assets before waiver & reimbursement 1.22% (a) 1.22% (a) 1.23% 1.22% 1.25% (a) Ratio of net investment income to average net assets 0.04% (a) 0.27% (a) 0.40% 0.40% 0.34% (a) Ratio of net investment income to (a)average net assets before waiver & reimbursement 0.02% 0.25% (a) 0.38% 0.38% 0.28% (a) Portfolio turnover rate 51.06% 40.72% 59.92% 16.99% 24.26% (a) Annualized. (b) For periods of less than a full year, total return is not annualized. (c) December 31, 1998 ( commencement of operations) to June 30, 1999. (d) The Fund elected to change its fiscal year to December 31. The figures shown are for the period July 1, 2001 through December 31, 2001.
See accompanying notes which are an integral part of the financial statements. GJMB Growth Fund Notes to Financial Statements June 30, 2002 (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 Trust Agreement permits the Board of Trustees to issue an unlimited number of shares of beneficial interest of separate series without par value. The Fund is one of a series of funds currently authorized by the Board of Trustees. The Fund's investment objective is to provide long term capital appreciation. The investment advisor to the Fund is Gamble, Jones, Morphy & Bent (the "Advisor"). 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 that 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 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. 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. If the Advisor decides that a price provided by the pricing service does not accurately reflect the fair market value of the securities, 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, in conformity with guidelines adopted by and 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 of Trustees 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. GJMB Growth Fund Notes to Financial Statements June 30, 2002 - continued (Unaudited) 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 Gamble, Jones, Morphy & Bent, 301 East Colorado Boulevard, Suite 802, Pasadena, California, 91101, serves as investment advisor to the Fund. Thomas S. Jones, President of the Advisor, and Christopher E. Morphy, 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 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 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 month ended June 30, 2002 the Advisor earned a fee of $73,354 from the Fund. The Advisor has contractually agreed to reimburse the Fund for all fees and expenses of the non-interested person Trustees through October 31, 2004. For the six month ended June 30, 2002, the Advisor reimbursed Trustees' expenses of $1,031. The Fund retains Unified Fund Services, Inc. ("Unified"), a wholly owned subsidiary of Unified Financial Services, Inc., 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 Agreement. A Trustee and the officers of the Trust are members of management and/or employees of Unified. The Fund retains Unified Financial Securities, Inc., a wholly owned subsidiary of Unified Financial Services, Inc., to act as the principal distributor of its shares. There were no payments made to the distributor during the six months period ended June 30, 2002. 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 period ended June 30, 2002, purchases and sales of investment securities, other than short term investments, aggregated $4,047,220, and $3,306,032, respectively. As of June 30, 2002, the gross unrealized appreciation for all securities totaled $229,204 and the gross unrealized depreciation for all securities totaled $2,148,183 for a net unrealized depreciation of $1,918,979. GJMB Growth Fund Notes to Financial Statements June 30, 2002 - continued (Unaudited) 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 June 30, 2002, Charles Schwab & Co. held 95.54% of the outstanding Fund shares in an omnibus account for the benefit of others. NOTE 7. ELECTION OF TRUSTEES At a special meeting of the shareholders held on May 29, 2002, a vote was held to elect members to serve on the Board of Trustees. The vote tally for each Trustee is as follows: For Witheld Total Gary Hippenstiel 10,516,210.432 648,472.896 11,164,683.328 Mark Muller 10,856,443.432 308,239.896 11,164,683.328 Ken Trumpfheller 10,493,506.432 671,176.896 11,164,683.328 Richard Wright 10,858,138.432 306,544.896 11,164,683.328 Ariston Convertible Securities Fund Schedule of Investments - June 30, 2002 - (Unaudited) Principal CONVERTIBLE BONDS - 70.8% Amount Value Biological Products (No Diagnostic Substances) - 7.2% Gilead Sciences, Inc., 5.00% 12/15/2007 345,000 $ 530,437 ----------------- ----------------- Computer Services/Data Processing - 5.3% Automatic Data Processing, Inc., 0.00%, 02/20/2012 350,000 395,938 ----------------- ----------------- Computer Storage Devices - 4.3% Veritas Software Corp., 1.856%, 08/13/2006 380,000 318,725 ----------------- ----------------- Electronic Components - 5.7% Celestica, Inc., 0.00%, 08/01/2020 1,000,000 426,250 ----------------- ----------------- Pharmaceutical Preparations - 4.4% Cephalon, Inc., 5.25% 5/1/2006 350,000 325,938 ----------------- ----------------- Semiconductors & Related Devices - 19.5% International Rectifier Corp., 4.25%, 7/15/2007 (b) 770,000 644,875 Nvidia Corp., 4.75%, 10/15/2007 365,000 299,756 Semtech Corp., 4.50%, 2/01/2007 525,000 503,344 ----------------- ----------------- 1,447,975 ----------------- ----------------- Services Computer Programing Services - 6.1% BEA Systems, Inc., 4.00%, 12/15/2006 (b) 550,000 448,937 ----------------- ----------------- Services Computer Processing & Data Preparation - 7.0% Affiliated Computer Services, Inc., 3.50%, 2/15/2006 410,000 520,700 ----------------- ----------------- Services - Prepackaged Software - 11.3% Siebel Systems Inc., 5.50%, 9/15/2006 350,000 347,812 Symantec Corp., 3.00%, 11/01/2006 400,000 486,500 ----------------- ----------------- 834,312 ----------------- ----------------- TOTAL CONVERTIBLE BONDS (Cost $6,145,607) 5,249,212 ----------------- ----------------- COMMON STOCKS - 28.8% Shares Value Biological Products - 6.8% Genzyme Corp. (a) 26,300 506,012 ----------------- ----------------- Radio & TV Broadcasting & Communications - 7.2% Qualcomm, Inc. (a) 19,269 529,705 ----------------- ----------------- Semiconductors & Related Devices - 14.8% Analog Devices, Inc. (a) 37,000 1,098,900 ----------------- ----------------- TOTAL COMMON STOCKS (Cost $1,051,305) 2,134,617 ----------------- -----------------
See accompanying notes which are an integral part of the financial statements. Ariston Convertible Securities Fund Schedule of Investments - June 30, 2002 - (Unaudited) - continued Call Options - 0.0% Shares Subject to Call Value NASDAQ 100 @ 70 Expires 1/18/2003 5,500 $ 275 ----------------- ----------------- (Cost $119,848) Money Market Securities - 1.7% Principal Huntington Money Fund - Investment A, 0.81%, (c) Amount (Cost $124,219) 124,219 124,219 ----------------- ----------------- TOTAL INVESTMENTS - 101.3% (Cost $7,440,979) 7,508,323 ----------------- ----------------- Other assets less liabilities - (1.3)% (96,142) ----------------- ----------------- TOTAL NET ASSETS - 100.0% $ 7,412,181 ================= ================= (a) Non-income producing (b) Security exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, to qualified institutional buyers. At June 30, 2002 the value of these securities amounted to $1,093,812 or 14.8% of net assets. (c) Variable rate security; the coupon rate shown represents the rate at June 30, 2002.
See accompanying notes which are an integral part of the financial statements. Ariston Convertible Securities Fund Statement of Assets and Liabilities June 30, 2002 (Unaudited) Assets Investments in securities, at value (cost $7,440,979) $ 7,508,323 Interest receivable 49,297 --------------- Total assets 7,557,620 --------------- Liabilities Accrued advisory fees 20,373 Redemptions payable 124,903 Other payables and accrued expenses 163 --------------- Total liabilities 145,439 --------------- Net Assets $ 7,412,181 =============== Net Assets consist of: Paid in capital 10,672,279 Accumulated net investment income (loss) (94,202) Accumulated net realized gain (loss) on investments (3,233,240) Net unrealized appreciation (depreciation) on investments 67,344 --------------- Net Assets, for 681,077 shares $ 7,412,181 =============== Net Asset Value Offering price and redemption price per share ($7,412,181 / 681,077) $ 10.88 ===============
See accompanying notes which are an integral part of the financial statements. Ariston Convertible Securities Fund Statement of Operations Six months ended June 30, 2002 (Unaudited) Investment Income Interest income $ 8,971 ---------------- Total Income 8,971 ---------------- Expenses Investment advisor fee 101,772 Interest expense 854 Trustee expenses 847 ---------------- Total Expenses 103,473 Reimbursed expenses (300) ---------------- ---------------- Total operating expenses 103,173 ---------------- ---------------- Net Investment Income (Loss) (94,202) ---------------- Realized & Unrealized Gain (Loss) Net realized gain (loss) on investment securities (315,377) Change in net unrealized appreciation (depreciation) on investment securities (2,912,556) ---------------- ---------------- Net realized and unrealized gain (loss) on investment securities (3,227,933) ---------------- ---------------- Net increase (decrease) in net assets resulting from operations $ (3,322,135) ================
See accompanying notes which are an integral part of the financial statements. Ariston Convertible Securities Fund Statement of Changes In Net Assets Period Year ended Ended June 30, 2002 Dec. 31, Increase (Decrease) in Net Assets (Unaudited) 2001 --------------- -------------- Operations Net investment income (loss) $ (94,202) $ (402,263) Net realized gain (loss) on investment securities (315,377) (2,430,761) Change in net unrealized appreciation (depreciation) (2,912,556) (2,042,903) --------------- -------------- --------------- Net increase (decrease) in net assets resulting from operations (3,322,135) (4,875,927) --------------- Distributions From net investment income - - From net realized gain - - --------------- -------------- --------------- Total distributions - - --------------- -------------- Capital Share Transactions Proceeds from shares sold 1,648,664 2,000,064 Reinvestment of distributions - - Amount paid for shares repurchased (1,207,208) (5,797,234) --------------- -------------- Net increase (decrease) in net assets resulting from share transactions 441,456 (3,797,170) --------------- -------------- --------------- -------------- Total Increase (Decrease) in Net Assets (2,880,679) (8,673,097) --------------- -------------- Net Assets Beginning of period 10,292,860 18,965,957 --------------- -------------- End of period [including accumulated net investment income (loss) of $(94,202) and $0, respectively] $ 7,412,181 $10,292,860 =============== ============== Capital Share Transactions Shares sold 115,534 108,112 Shares issued in reinvestment of distributions - - Shares repurchased (89,424) (343,274) --------------- -------------- Net increase (decrease) from capital transactions 26,110 (235,162) =============== ==============
See accompanying notes which are an integral part of the financial statements. Ariston Convertible Securities Fund Financial Highlights Period ended Year Year Year Year Year June 30, ended ended ended ended ended 2002 (c) Dec. 30, Dec. 30, Dec. 30, Dec. 30, Dec. 30, (Unaudited) 2001 2000 1999 (d) 1998 1997 ------------- --------- ---------- ---------- ---------- ---------- Selected Per Share Data Net asset value, beginning of period $ 15.72 $ 21.31 $ 25.00 $ 15.36 $ 15.08 $ 13.66 ---------- ---------- ---------- ---------- ---------- ---------- Income from investment operations Net investment income (loss) (0.14) (0.52) (0.58) (0.11) 0.00 0.11 Net realized and unrealized gain (loss) (4.70) (5.07) (3.11) 14.49 0.31 1.68 ---------- ---------- ---------- ---------- ---------- ---------- Total from investment operations (4.84) (5.59) (3.69) 14.38 0.31 1.79 ---------- ---------- ---------- ---------- ---------- ---------- Less Distributions to shareholders: From net investment income 0.00 0.00 0.00 0.00 0.00 (0.11) From net realized gain 0.00 0.00 0.00 (4.74) (0.03) (0.26) ---------- ---------- ---------- ---------- ---------- ---------- Total distributions 0.00 0.00 0.00 (4.74) (0.03) (0.37) ---------- ---------- ---------- ---------- ---------- ---------- Net asset value, end of period $ 10.88 $ 15.72 $ 21.31 $ 25.00 $ 15.36 $ 15.08 ========== ========== ========== ========== ========== ========== Total Return (30.79)%(b) (26.23)% (14.76)% 94.61% 2.09% 13.16% Ratios and Supplemental Data Net assets, end of period (000) $ 7,412 $10,293 $18,966 $15,960 $10,385 $10,345 Ratio of expenses to average net assets 2.28% (a) 2.37% 2.25% 2.10% 2.32% 2.38% Ratio of expenses to average net assets before waiver & reimbursement 2.27% (a) 2.37% 2.28% 2.10% 2.32% 2.38% Ratio of net investment income to average net assets (2.07) (a) (3.07)% (2.30)% (0.59)% (0.13)% 0.79% Ratio of net investment income to average net assets before reimbursement (2.07) (a) (3.07)% (2.33)% (5.90)% (1.30)% 0.79% Portfolio turnover rate 10.57% 26.17% 47.83% 32.89% 27.79% 30.47% (a) Annualized. (b) For periods of less than a full year, total return is not annualized. (c) For the period January 1, 2002 to June 30, 2002. (d) See note 1 of the Notes to the Financial Statements.
See accompanying notes which are an integral part of the financial statements. Ariston Convertible Securities Funds Notes to Financial Statements June 30, 2002 (Unaudited) NOTE 1. ORGANIZATION Ariston Convertible Securities Fund (the "Convertible Securities Fund") was organized as a diversified series of the AmeriPrime Funds (the "Trust") on February 24, 1999. The Trust is established under the laws of Ohio by an Agreement and Declaration of Trust dated August 8, 1995 (the "Trust Agreement"). The investment objective of the Fund is total return. The Trust Agreement permits the Board of Trustees (the "Board") to issue an unlimited number of shares of beneficial interest of separate series without par value. On April 30, 1999, the Convertible Securities Fund acquired the assets and assumed the liabilities of Lexington Convertible Securities Fund (the "Predecessor Fund") in a tax-free reorganization. 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 - Common stocks, which are traded on any exchange, are valued at the last quoted sale price. Lacking a last sale price, a security is valued at the mean between the last bid and ask price except when, in the Advisor's opinion, the mean price does not accurately reflect the current value of the security. When market quotations are not readily available, when the Advisor determines the mean price does not accurately reflect the current value or when restricted securities are being valued, such securities are valued as determined in good faith by the Advisor, in conformity with guidelines adopted by and subject to review and oversight of the Board of the Trust. All other securities generally are valued at the mean between the last bid and ask price, but may be valued on the basis of prices furnished by a pricing service when the Advisor believes such prices accurately reflect the fair market value of such securities. Convertible securities are valued at the greater of the value determined as described in the preceding sentence and the value of the shares of common stock into which the securities are convertible (determined as described in the preceding paragraph). If the Advisor decides that a price provided by the pricing service does not accurately reflect the fair market value of the securities, when market quotations are not readily available, when prices are not readily available from a pricing service, or when restricted or illiquid securities are being valued, securities are valued at fair value as determined in good faith by the Advisor, in conformity with guidelines adopted by and 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. Dividends and Distributions - The Fund intends to distribute substantially all of its net investment income as dividends to its shareholders on a quarterly basis. The Fund intends to distribute its net long-term capital gains and its net short-term capital gains at least once a year. Securities Transactions & Investment Income - 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. During market conditions that cause the underlying common stocks of a convertible security to greatly increase in value, the aggregate amortization of premium can exceed interest income and the aggregate accretion of discount at levels that may cause the Fund to recognize negative income. Ariston Convertible Securities Funds Notes to Financial Statements June 30, 2002 (Unaudited) - continued NOTE 3. FEES AND OTHER TRANSACTIONS WITH AFFILIATES The Fund retains Ariston Capital Management Corporation (the "Advisor") to manage the Fund's investments. The Advisor was founded in 1977. Richard B. Russell, President and controlling shareholder of the Advisor, is primarily responsible for the day-to-day management of the Fund's portfolio. Under the terms of the Fund's management agreement (the "Agreement"), the Advisor manages the Fund's investments subject to approval of the Board and pays all of the expenses of the Fund except brokerage fees and 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 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 2.25% of the average value of daily net assets of the Fund, less 12b-1 expenses and fees and expenses of the non-interested person Trustees. It should be noted that most investment companies pay their own operating expenses directly, while the Fund's expenses, except those specified above, are paid by the Advisor. For the six months ended June 30, 2002, the Advisor received fees of $101,772 from the Fund. The Fund has adopted a Distribution Plan pursuant to Rule 12b-1 under the 1940 Act (the "Plan"). The Plan states that the Fund shall pay directly, or reimburse the Advisor or Distributor, for distribution expenses in an amount not to exceed 0.25% of the average daily net assets of the Fund. Expenses of the Fund were not affected by the 12b-1 Plan because the Fund's Advisor has not activated the Plan. The Fund retains Unified Fund Services, Inc. ("Unified"), a wholly owned subsidiary of Unified Financial Services, Inc., 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 Adviser paid all administrative, transfer agency, and fund accounting fees on behalf of the Fund per the Agreement. A Trustee and the officers of the Trust are members of management and /or employees of Unified. The Fund retains Unified Financial Securities, Inc., a wholly owned subsidiary of Unified Financial Services, Inc. to act as the principal distributor of the Fund's shares. There were no payments made to the distributor during the six months ended June 30, 2002. 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 June 30, 2002, purchases and sales of investment securities, other than short-term investments, aggregated $1,342,103 and $940,121, respectively. As of June 30, 2002, the gross unrealized appreciation for all securities totaled $1,258,918 and the gross unrealized depreciation for all securities totaled $1,191,574 for a net unrealized appreciation of $67,344. The aggregate cost of securities for federal income tax purposes at June 30, 2002 was $7,440,979. NOTE 6. ESTIMATES Preparation of financial statements in accordance with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Ariston Convertible Securities Funds Notes to Financial Statements June 30, 2002 (Unaudited) - continued NOTE 7. RELATED PARTY TRANSACTIONS The Advisor is not a registered broker-dealer of securities and thus does not receive commissions on trades made on behalf of 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 June 30, 2002, Charles Schwab & Co., Inc. held for the benefit of others, in aggregate, more than 30% of the Fund. NOTE 8. ELECTION OF TRUSTEES At a special meeting of the shareholders held on May 29, 2002, a vote was held to elect members to serve on the Board of Trustees. The vote tally for each Trustee is as follows: For Witheld Total Gary Hippenstiel 10,516,210.432 648,472.896 11,164,683.328 Mark Muller 10,856,443.432 308,239.896 11,164,683.328 Ken Trumpfheller 10,493,506.432 671,176.896 11,164,683.328 Richard Wright 10,858,138.432 306,544.896 11,164,683.328 -----END PRIVACY-ENHANCED MESSAGE-----