-----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, UcRFUCBCk4jkKvjndhd7l0ZNJDHCm0ORQMH0hMLvPjYqxpyjRYhYUuDD91wK6K08 5yL0NzC1EcN26Np2VLpCeA== 0001035449-04-000119.txt : 20040310 0001035449-04-000119.hdr.sgml : 20040310 20040310163443 ACCESSION NUMBER: 0001035449-04-000119 CONFORMED SUBMISSION TYPE: N-CSRS PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 20031231 FILED AS OF DATE: 20040310 EFFECTIVENESS DATE: 20040310 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-CSRS SEC ACT: 1940 Act SEC FILE NUMBER: 811-09096 FILM NUMBER: 04660578 BUSINESS ADDRESS: STREET 1: 431 NORTH PENNSYLVANIA STREET 2: STREET CITY: INDIANAPOLIS STATE: IN ZIP: 46204 BUSINESS PHONE: 317-917-7000 MAIL ADDRESS: STREET 1: 431 NORTH PENNSYLVANIA STREET 2: STREET CITY: INDIANAPOLIS STATE: IN ZIP: 46204 N-CSRS 1 afncsrsemi1203.txt AMERIPRIME FUNDS United States Securities and Exchange Commission Washington, D.C. 20549 Form N-CSR certified shareholder report of registered management investment companies Investment Company Act file number 811-09096 ------------------ AmeriPrime Funds (Exact name of registrant as specified in charter) 431 N Pennsylvania St. Indianapolis, IN 46204 - -------------------------------------------------------------- (Address of principal executive offices) (Zip code) Timothy Ashburn Unified Fund Services 431 N. Pennsylvania St. Indianapolis, IN 46204 - ------------------------------------ (Name and address of agent for service) Registrant's telephone number, including area code: 317-917-7000 Date of fiscal year end: 6/30 -------------------- Date of reporting period: 12/31/03 ---------- Form N-CSR is to be used by management investment companies to file reports with the Commission not later than 10 days after the transmission to stockholders of any report that is required to be transmitted to stockholders under Rule 30e-1 under the Investment Company Act of 1940 (17 CFR 270.30e-1). The Commission may use the information provided on Form N-CSR in its regulatory, disclosure review, inspection and policymaking roles. A registrant is required to disclose the information specified by Form N-CSR, and the Commission will make this information public. A registrant is not required to respond to the collection of information contained in Form N-CSR unless the Form displays a currently valid Office of Management and Budget ("OMB") control number. Please direct comments concerning the accuracy of the information collection burden estimate and any suggestions for reducing the burden to Secretary, Securities and Exchange Commission, 450 Fifth Street, NW, Washington, DC 20549-0609. The OMB has reviewed this collection of information under the clearance requirements of 44 U.S.C. 3507. Item 1. Reports to Stockholders. ================================================================= IMS Funds ================================================================= Semi-Annual Report December 31, 2003 (Unaudited) Fund Advisor: IMS Capital Management, Inc. 8995 S.E. Otty Road Portland, Oregon 97266 Toll Free (800) 934-5550 IMSCX & IMSAX Letter to Shareholders Dear Fellow Shareholders, We are pleased to present our semi-annual report for the period ending December 31, 2003. The report covers the 6-month performance of the IMS Capital Value Fund and the IMS Strategic Allocation Fund. The IMS Capital Value Fund posted, what we think, are impressive results. For the one year period ended December 31, 2003, the Fund had a total return of 56.07%. The Fund began 2003 with total assets of $16.1 million and ended the year with $59.1 million. This growth was due to both performance and asset inflows from performance-related recognition in the national media. For example, in the last year, several publications have singled out the performance of the IMS Capital Value Fund including the New York Times, Wall Street Journal, BusinessWeek magazine, Investor's Business Daily and Kiplinger's Personal Finance magazine. * The IMS Strategic Allocation Fund also posted solid returns in 2003. The Fund completed its first full calender year of operation with a 12-month return of 25.32%. Total assets grew from $2.0 million to $10.7 million. The IMS Strategic Allocation Fund's unique investment approach allows it to strategically allocate across a broad array of investment styles and asset classes in an effort to manage risk and improve returns over a simple buy and hold approach. We believe the Fund's first full year of operation was a success given the risk management techniques that were in place and the results that were achieved. The principals and employees of IMS Capital Management continue to invest the majority of their assets in the IMS Family of Funds. We thank you for the confidence and trust you have demonstrated by investing with us. Sincerely, /s/ Carl Marker /s/ Arthur Nunes Carl W. Marker Arthur G. Nunes, CFP Portfolio Manager Portfolio Manager IMS Capital Value Fund IMS Strategic Allocation Fund IMS Strategic Allocation Fund * References: o New York Times, May 18, 2003, p Bu 7 o Wall Street Journal, Aug. 1, 2003, p C12 o BusinessWeek, Jan. 27, 2003, p 58 o Investor's Business Daily, Sep. 23, 2003, p A9 o Kiplinger's, Aug. 2003, p 51 The prospectus should be read carefully before investing. To request a prospectus for more complete information, including fees and expenses, call 800-934-5550. Past performance does not guarantee future results. Shares when redeemed may be worth more or less than original cost. Distributed by Unified Financial Securities, Inc. Member NASD, SPIC. IMS Capital IMS Strategic Value Fund Allocation Fund ---------------- ------------------- 1 Year 56.07% 25.32% 5 Year** 13.07% N/A 10 Year N/A N/A Since Inception** 13.09% 20.56% Inception Dates August 5, 1996 November 5, 2002 **Average annual returns Management Discussion & Analysis IMS Capital Value Fund During the six-month period ending December 31, 2003 the IMS Capital Value Fund had a gain of 22.74%. For the full year, the IMS Capital Value Fund posted its best return ever, 56.07%, and beat its benchmark, the Russell Mid-Cap Value Index, over all time periods. The IMS Capital Value Fund continued to successfully identify undervalued, seasoned stocks with positive business momentum. After holding up extremely well during the worst years of the bear market, 2000, 2001 and 2002, the Fund posted solid gains in the final six months of 2003. The IMS Capital Value Fund's return was the result of successful stock picking and portfolio management, driven by our proven research methods and investment discipline. We say "proven" because IMS Capital Management, Inc., the investment advisor to the Fund, recently completed its 15th full year of operation, and the basic research process and investment disciplines have remained very consistent over that time. The companies in the Fund's portfolio made a broad-based contribution to the Fund's performance. Nineteen of the IMS Capital Value Fund's forty-nine holdings at year-end, increased 20% or more during the final six months of the year. Companies that more than doubled during the year included Computer Associates, Cendant, Humana, Pacificare, Rite Aid, and Marvel, and three companies surged in price due to acquisitions; Dial, Officemax and Airborne. The Fund also held some companies, such as CenturyTel and Sprint (which returned 11% and 13% respectively for the year), which underperformed the broad market by roughly half. Investment Returns - -------------------------------------------------------------------------------------------------------------------- Average Annual Total Returns* (for periods ended December 31, 2003) Since Inception Six Months One Year Three Year Five Year (August 5, 1996) ------------- ------------- -------------- -------------- ------------------- IMS Capital Value Fund 22.74% 56.07% 18.09% 13.07% 13.09% Russell Mid-Cap Value Index** 22.06% 38.07% 8.48% 8.73% 12.85% - --------------------------------------------------------------------------------------------------------------------
The rates of return will vary and the principal value of an investment will fluctuate. Shares, if redeemed, may be worth more or less than their original cost. Performance data quoted does not reflect the deduction of taxes that an investor may pay on Fund distributions or the redemption of Fund shares. Past performance is not indicative of future investment results. Due to market volatility, current performance may be higher or lower than the performance shown above. * Return figures reflect any change in price per share and assume the reinvestment of all distributions. ** The Index is an unmanaged benchmark that assumes reinvestment of all distributions and excludes the effect of taxes and fees. The Russell Mid-Cap Value is a widely recognized unmanaged index of equity prices and is representative of a broader market and range of securities than is found in the Fund's portfolio. IMS Strategic Allocation Fund During the six-month period ending December 31, 2003 the IMS Strategic Allocation Fund had a gain of 14.64%. For the full year, the IMS Strategic Allocation Fund posted a return of 25.32%. The IMS Strategic Allocation Fund's return for the six-month period slightly trailed the return of the Fund's benchmark, the S & P 500 index. In addition to its core holdings, the Fund held positions in small-cap stock index funds, the NASDAQ 100 index, and various industry sector funds such as basic materials and biotechnology. Unfortunately, the Fund had an underweighted position in mid-cap value, one of the best performing sectors over the previous twelve months. Investment Returns - ------------------------------------------------------------------------------- Average Annual Total Returns (for periods ended December 31, 2003) Since Inception Six Months One Year (November 5, 2002) ----------- ------------- ------------------ IMS Strategic Allocation Fund 14.64% 25.32% 17.79% S&P 500 Index 15.13% 28.66% 20.56% - ------------------------------------------------------------------------------- The rates of return will vary and the principal value of an investment will fluctuate. Shares, if redeemed, may be worth more or less than their original cost. Performance data quoted does not reflect the deduction of taxes that an investor may pay on Fund distributions or the redemption of Fund shares. Past performance is not indicative of future investment results. Due to market volatility, current performance may be higher or lower than the performance shown above. * Return figures reflect any change in price per share and assume the reinvestment of all distributions. ** The Index is an unmanaged benchmark that assumes reinvestment of all distributions and excludes the effect of taxes and fees. The S&P 500 is a widely recognized unmanaged index of equity prices and is representative of a broader market and range of securities than is found in the Fund's portfolio. Comparison of the Growth of a $10,000 Investment in the IMS Capital Value Fund and the Russell Mid-Cap Value Index IMS Capital Russell Mid-Cap Value Fund Value Index ($24,876) ($24,494) 8/5/96 10,000.00 10,000.00 12/31/96 11,140.00 11,414.87 12/31/97 11,887.89 15,338.19 12/31/98 13,461.44 16,117.75 12/31/99 15,855.34 16,099.97 12/31/00 15,106.14 19,187.89 12/31/01 17,938.79 19,634.14 12/31/02 15,939.57 17,740.47 12/31/03 24,876.49 24,493.78 The chart above assumes an initial investment of $10,000 made on August 6, 1996 (commencement of Fund operations) and held through December 31, 2003. THE FUND'S RETURN REPRESENTS PAST PERFORMANCE AND DOES NOT GUARANTEE FUTURE RESULTS. The returns shown do not reflect deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. Investment returns and principal values will fluctuate so that your shares, when redeemed, may be worth more or less than their original purchase price. Comparison of the Growth of a $10,000 Investment in the IMS Strategic Allocation Fund and the S&P 500 Index IMS Strategic S&P 500 Allocation Fund Index ($12,106) ($12,407) 11/5/02 10,000.00 10,000.00 12/31/02 9,660.00 9,643.31 6/30/03 10,560.00 10,776.57 12/31/03 12,105.81 12,406.71 4 The chart above assumes an initial investment of $10,000 made on November 5, 2002 (commencement of Fund operations) and held through December 31, 2003. THE FUND'S RETURN REPRESENTS PAST PERFORMANCE AND DOES NOT GUARANTEE FUTURE RESULTS. The returns shown do not reflect deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. Investment returns and principal values will fluctuate so that your shares, when redeemed, may be worth more or less than their original purchase price. IMS Capital Value Fund Schedule of Investments December 31, 2003 (Unaudited) Common Stocks - 97.52% Shares Value ------------ ----------------- Accident & Health Insurance - 1.75% Aon Corp. 41,800 $ 1,000,692 ----------------- Bottled & Canned Soft Drinks & Carbonated Waters - 2.48% PepsiAmericas, Inc. (a) 83,200 1,424,384 ----------------- Cable & Other Pay Television Services - 2.41% Comcast Corp. Class A (a) 42,000 1,380,540 ----------------- Cleaning Preparations, Perfumes, Cosmetics - 2.18% Dial Corp. 43,800 1,246,986 ----------------- Communication Equipment - 1.82% UTStarcom, Inc. (a) 28,100 1,041,667 ----------------- Communication Services - 3.98% XM Satellite Radio Holdings, Inc. - Class A (a) 86,600 2,282,776 ----------------- Dolls & Stuffed Toys - 2.24% Marvel Enterprises, Inc. (a) 44,200 1,286,662 ----------------- Electric Services - 1.29% Great Plains Energy, Inc. 23,300 741,406 ----------------- Electrical Industrial Apparatus - 2.05% American Power Conversion, Inc. 48,000 1,173,600 ----------------- Fire, Marine & Casualty Insurance - 1.84% Loews Corp. 21,300 1,053,285 ----------------- Hospital & Medical Service Plans - 5.86% Humana, Inc. (a) 78,900 1,802,865 PacifiCare Health Systems, Inc. (a) 23,000 1,554,800 ----------------- 3,357,665 ----------------- Investment Advice - 2.05% Alliance Capital Management Holding LP 34,900 1,177,875 ----------------- Life Insurance - 4.64% Lincoln National Corp. 30,700 1,239,359 Nationwide Financial Services, Inc. - Class A 42,900 1,418,274 ----------------- 2,657,633 -----------------
See accompanying notes which are an integral part of the financial statements. IMS Capital Value Fund Schedule of Investments - continued December 31, 2003 (Unaudited) Common Stocks - 97.52% - continued Shares Value ------------ ----------------- Miscellaneous Chemical Products - 1.68% Cytec Industries, Inc. (a) 25,100 $ 963,589 ----------------- Miscellaneous Furniture & Fixtures - 2.06% Hillenbrand Industries, Inc. 19,000 1,179,140 ----------------- National Commercial Banks - 2.28% First Tennessee National Corp. 29,700 1,309,770 ----------------- Ophthalmic Goods - 2.13% Bausch & Lomb, Inc. 23,500 1,219,650 ----------------- Petroleum Refining - 2.03% Amerada Hess Corp. 21,900 1,164,423 ----------------- Pharmaceutical Preparations - 2.50% Watson Pharmaceuticals, Inc. (a) 31,200 1,435,200 ----------------- Poultry Slaughtering & Processing - 6.18% Tyson Foods, Inc. 267,400 3,540,376 ----------------- Radio & Tv Broadcasting & Communications Equipment - 1.93% Harris Corp. 29,200 1,108,140 ----------------- Refuse Systems - 2.47% Republic Services, Inc. 32,100 822,723 Waste Management, Inc. 20,000 592,000 ----------------- 1,414,723 ----------------- Retail - Catalog & Mail - Order Houses - 0.82% Schein Henry, Inc. (a) 7,000 473,060 ----------------- Retail - Drug Stores & Proprietary Stores - 2.80% Rite Aid Corp. (a) 266,000 1,606,640 ----------------- Security & Commodity Brokers, Dealers, Exchanges Services - 2.23% T. Rowe Price Associates, Inc. 27,000 1,280,070 ----------------- Security Brokers, Dealers & Flotation Companies - 2.46% E*Trade Group, Inc. (a) 111,300 1,407,945 ----------------- Semiconductors & Related Devices - 2.17% LSI Logic Corp. (a) 140,000 1,241,800 -----------------
See accompanying notes which are an integral part of the financial statements. IMS Capital Value Fund Schedule of Investments - continued December 31, 2003 (Unaudited) Common Stocks - 97.52% - continued Shares Value ------------ ----------------- Services - Computer Integrated Systems Design - 4.18% Computer Sciences Corp. (a) 18,900 $ 835,947 Convergys Corp. (a) 46,900 818,874 Unisys Corp. (a) 50,000 742,500 ----------------- 2,397,321 ----------------- Services - Computer Processing & Data Preparation - 1.45% SunGard Data Systems, Inc. (a) 30,000 831,300 ----------------- Services - Computer Programming Services - 1.83% Amdocs Ltd. (a) 46,700 1,049,816 ----------------- Services - Health Services - 2.29% Gentiva Health Services, Inc. (a) 103,900 1,313,296 ----------------- Services - Personal Services - 7.26% Cendant Corp. (a) 55,100 1,227,077 H & R Block, Inc. 22,300 1,234,751 Service Corporation International (a) 314,900 1,697,311 ----------------- 4,159,139 ----------------- Services - Prepackaged Software - 3.04% Computer Associates International, Inc. 38,300 1,047,122 Symantec Corp. (a) 20,000 693,000 ----------------- 1,740,122 ----------------- Services - Skilled Nursing Care Facilities - 1.51% Manor Care, Inc. 25,000 864,250 ----------------- Services-Home Health Care Services - 1.44% Apria Healthcare Group, Inc. (a) 28,900 822,783 ----------------- Specialty Cleaning, Polishing and Sanitation Preparations - 1.30% Clorox Corp. 15,300 742,968 ----------------- Surgical & Medical Instruments & Apparatus - 1.54% Guidant Corp. 14,700 884,940 ----------------- Telephone Communications (No Radiotelephone) - 3.35% Centurytel, Inc. 31,000 1,011,220 Sprint Corp. 55,200 906,384 ----------------- 1,917,604 ----------------- TOTAL COMMON STOCKS (Cost $43,614,849) 55,893,236 -----------------
See accompanying notes which are an integral part of the financial statements. IMS Capital Value Fund Schedule of Investments - continued December 31, 2003 (Unaudited) Principal Preferred Stocks - 0.07% Amount Value ------------ ----------------- Metropolitan Mortgage & Securities, 9.9984% (c) $ 25,000 $ 37,047 ----------------- TOTAL PREFERRED STOCKS (Cost $482,325) 37,047 ----------------- Money Market Securities - 5.54% Huntington Money Market Fund - Investment Shares, 0.20% (b) 3,176,080 3,176,080 ----------------- TOTAL MONEY MARKET SECURITIES (Cost $3,176,080) 3,176,080 ----------------- TOTAL INVESTMENTS (Cost $47,273,254) - 103.13% $ 59,106,363 ----------------- Liabilities in excess of cash and other assets - (3.13)% (1,793,960) ----------------- TOTAL NET ASSETS - 100.00% $ 57,312,403 =================
(a) Non-income producing. (b) Variable rate security; the coupon rate shown represents the rate at December 31, 2003. (c) Variable rate security; the rate shown represents the rate at December 31, 2003. See accompanying notes which are an integral part of the financial statements. IMS Strategic Allocation Fund Schedule of Investments December 31, 2003 (Unaudited) Exchanged Traded Funds - 95.26% Shares Value ------------ ----------------- Broadband HOLDRS Trust 40,000 538,000 iShares S&P MidCap 400 / BARRA Growth Index Fund 7,900 937,730 iShares Dow Jones U.S. Basic Materials Sector Index Fund 11,100 506,049 iShares Dow Jones U.S. Consumer Cyclical Sector Index Fund 8,600 476,440 iShares Dow Jones U.S. Financial Sector Index Fund 5,000 440,200 iShares S&P MidCap 400 / BARRA Value Index Fund 4,800 530,352 iShares Dow Jones U.S. Energy Sector Index Fund 10,800 535,140 iShares Goldman Sachs Networking Index Fund 17,000 469,370 iShares Goldman Sachs Software Index Fund (a) 12,500 472,000 iShares MSCI Japan Index Fund 28,000 269,920 iShares S&P 500 / BARRA Value Index Fund 9,100 504,322 iShares S&P SmallCap 600 / BARRA Value Index Fund 9,700 974,753 iShares S&P SmallCap 600 / BARRA Growth Index Fund 13,100 1,161,970 iShares S&P 500 / BARRA Growth Index Fund 8,700 483,720 Semiconductor HOLDRS Trust 13,000 538,200 Wireless HOLDRS Trust 7,400 357,198 iShares S&P Global Energy Sector Index Fund 5,000 294,200 NASDAQ-100 Index Tracking Stock 15,000 546,300 ----------------- TOTAL EXCHANGE TRADED FUNDS (Cost $8,847,730) 10,035,864 ----------------- Mutual Funds - 4.82% Rydex Series - Biotechnology Fund 25,747 508,496 ----------------- TOTAL MUTUAL FUNDS (Cost $500,000) 508,496 ----------------- Principal Money Market Securities - 1.68% Amount ------------ Huntington Money Market Fund - Class A, 0.20% (b) $ 176,642 176,642 ----------------- TOTAL MONEY MARKET SECURITIES (Cost $176,642) 176,642 ----------------- TOTAL INVESTMENTS (Cost $9,524,372) - 101.76% $ 10,721,002 ----------------- Liabilities in excess of cash and other assets - (1.76)% (190,609) ----------------- TOTAL NET ASSETS - 100.00% $ 10,530,393 =================
(a) Non-income producing. (b) Variable rate security; the coupon rate shown represents the yield at December 31, 2003. See accompanying notes which are an integral part of the financial statements. IMS Funds Statement of Assets and Liabilities December 31, 2003 (Unaudited) IMS Capital IMS Strategic Value Fund Allocation Fund Assets Investments in securities, at value $ 59,106,363 $ 10,721,002 (cost $47,273,254 and $9,524,372 respectively) Cash - 21,542 Interest receivable 392 44 Dividends receivable 44,072 3,340 Receivable for fund shares sold 236,107 51,000 Receivable from advisor - 4,666 Other assets 11,590 1,627 ------------------- ----------------- Total assets 59,398,524 10,803,221 ------------------- ----------------- Liabilities Payable to advisor 67,591 - Payable for investments purchased 1,857,455 168,000 Payable for fund shares redeemed 138,541 92,449 Other payables and accrued expenses 22,509 12,379 Payable to custodian 25 - ------------------ ----------------- Total liabilities 2,086,121 272,828 ------------------ ----------------- Net Assets: $ 57,312,403 $ 10,530,393 ================== ================= Shares outstanding 3,418,721 878,703 ------------------ ----------------- Net Assets consist of: Paid in capital $ 44,891,295 $ 9,406,018 Accumulated undistributed net investment income (loss) (131,539) (38,054) Accumulated net realized gain (loss) on investments 717,202 (34,201) Net unrealized appreciation (depreciation) on investments 11,835,445 1,196,630 ------------------ ----------------- $ 57,312,403 $ 10,530,393 ================== ================= Net asset value and offering price per share $ 16.76 $ 11.98 ================== ================= Redemption price per share (a) $ 16.68 $ 11.92 ================== =================
(a) The redemption price per share reflects a redemption fee of 0.50% on shares redeemed within 90 days of purchase. See accompanying notes which are an integral part of the financial statements. IMS Funds Statement of Operations Six Months ended December 31, 2003 (Unaudited) IMS Capital IMS Strategic Value Fund Allocation Fund ---------------------- ---------------------- Investment Income Dividend income $ 214,129 $ 29,811 Interest income 2,503 783 ---------------------- ---------------------- Total Income 216,632 30,594 ---------------------- ---------------------- Expenses Investment advisor fee 275,773 43,949 Administration expenses 21,962 11,664 Transfer agent expenses 15,699 8,704 Fund accounting expenses 12,621 8,065 Registration expenses 9,626 1,599 Legal expenses 9,302 5,455 Custodian expenses 9,146 2,216 Auditing expenses 5,870 4,967 Insurance expenses 2,322 319 Pricing expenses 2,127 1,359 Miscellaneous expenses 1,151 1,252 Printing expenses 978 2,426 Trustee expenses 496 638 ---------------------- ---------------------- Total Expenses 367,073 92,613 Reimbursed expenses (a) (18,902) (23,965) ---------------------- ---------------------- Total operating expenses 348,171 68,648 ---------------------- ---------------------- Net Investment Income (Loss) (131,539) (38,054) ---------------------- ---------------------- Realized & Unrealized Gain (Loss) Net realized gain (loss) on investment securities 2,599,693 28,688 Net realized gain (loss) on option transactions 104,521 - Change in net unrealized appreciation (depreciation) on investment securities 6,231,033 976,092 ---------------------- ---------------------- Net realized and unrealized gain (loss) on investment securities 8,935,247 1,004,780 ---------------------- ---------------------- Net increase (decrease) in net assets resulting from operations $ 8,803,708 $ 966,726 ====================== ======================
(a) See note 3 to the financial statements. See accompanying notes which are an integral part of the financial statements. IMS Funds Statements of Changes In Net Assets IMS Capital IMS Strategic Value Fund Allocation Fund Six Months ended Six Months ended December 31, 2003 Year ended December 31, 2003 Period ended Increase (Decrease) in Net Assets (Unaudited) June 30, 2003 (Unaudited) June 30, 2003 (a) ----------------- -------------- ----------------- ---------------- Operations Net investment income (loss) $ (131,539) $ (61,015) $ (38,054) $ (13,066) Net realized gain (loss) on investment securities 2,599,693 320,703 28,688 47,861 Net realized gain (loss) on option transactions 104,521 (236,581) - - Change in net unrealized appreciation (depreciation) 6,231,033 4,174,278 976,092 220,538 ----------------- ------------- ------------------ ---------------- Net increase (decrease) in net assets resulting from operations 8,803,708 4,197,385 966,726 255,333 ----------------- ------------- ------------------ ---------------- Distributions From net investment income - (39,209) - - From net realized gain (1,560,781) - (97,684) - From return of capital - (31,729) - - ----------------- ------------- ------------------ ---------------- Total distributions (1,560,781) (70,938) (97,684) - ----------------- ------------- ------------------ ---------------- Capital Share Transactions Proceeds from shares sold 20,013,380 14,575,612 6,071,278 4,095,810 Reinvestment of distributions 1,544,187 68,638 96,390 - Amount paid for shares repurchased (2,892,889) (4,509,797) (406,679) (450,781) ----------------- ------------- ------------------ ---------------- Net increase (decrease) in net assets resulting from share transactions 18,664,678 10,134,453 5,760,989 3,645,029 ----------------- ------------- ------------------ ---------------- Total Increase (Decrease) in Net Assets 25,907,605 14,260,900 6,630,031 3,900,362 ----------------- ------------- ------------------ ---------------- Net Assets Beginning of period 31,404,798 17,143,898 3,900,362 - ----------------- ------------- ------------------ ---------------- End of period $ 57,312,403 $ 31,404,798 $ 10,530,393 $ 3,900,362 ================= ============= ================== ================ Accumulated undistributed net investment income (loss) included in net assets at end of period $ (131,539) $ - $ (38,054) $ - ----------------- ------------- ------------------ ---------------- Capital Share Transactions Shares sold 1,275,040 1,185,162 536,581 416,154 Shares issued in reinvestment of distributions 93,986 6,063 8,210 - Shares repurchased (185,440) (393,648) (35,605) (46,638) ----------------- ------------- ------------------ ---------------- Net increase (decrease) from capital transactions 1,183,586 797,577 509,186 369,516 ================= ============= ================== ================
(a) For period of November 5, 2002 (commencement of operations) through June 30, 2003. See accompanying notes which are an integral part of the financial statements. IMS Capital Value Fund Financial Highlights Six Months ended December 31, 2003 Year ended Year ended Year ended Year ended Period ended Year ended (Unaudited) June 30,2003 June 30,2002 June 30,2001 June 30,2000 June 30,1999(a) Oct. 31, 1998 ---------------- ----------- ----------- ----------- ----------- ----------- ----------- Selected Per Share Data Net asset value, beginning of period $ 14.05 $ 11.93 $ 13.87 $ 13.91 $ 14.56 $ 11.28 $ 12.06 --------------- ----------- ----------- ----------- ----------- ----------- ----------- Income from investment operations Net investment income (loss) (0.05) (0.04) 0.04 (0.05) (0.05) - (0.06) Net realized and unrealized gain (loss) 3.23 2.21 (0.19) 0.50 0.88 3.28 0.12 --------------- ----------- ----------- ----------- ----------- ---------- ----------- Total from investment operations 3.18 2.17 (0.15) 0.45 0.83 3.28 0.06 --------------- ----------- ----------- ----------- ----------- ----------- ----------- Less Distributions to shareholders: From net investment income - (0.03) - - - - (0.03) From net realized gain (0.48) - (1.79) (0.49) (1.48) - (0.81) From return of capital - (0.02) - - - - - -------------- ----------- ----------- ----------- ----------- ----------- ----------- Total distributions (0.48) (0.05) (1.79) (0.49) (1.48) - (0.84) -------------- ----------- ----------- ----------- ----------- ---------- ----------- Net asset value, end of period $ 16.76 $ 14.05 $ 11.93 $ 13.87 $ 13.91 $ 14.56 $ 11.28 ============== =========== =========== =========== ====== =========== =========== Total Return 22.74% (b) 18.28% -1.05% 3.72% 6.39% 29.08%(b) 2.27% Ratios and Supplemental Data Net assets, end of period (000) $ 57,312 $ 31,405 $ 17,144 $ 11,488 $ 11,585 $ 11,608 $ 11,524 Ratio of expenses to average net assets 1.59% 1.59% 1.59% 1.59% 1.59% 1.59%(c) 1.73% Ratio of expenses to average net assets before waiver & reimbursement 1.68% 2.05% 2.23% 2.28% 2.08% 2.50%(c) 2.34% Ratio of net investment income to average net assets (0.60)% (0.34)% 0.29% (0.39)% (0.36)% (0.04)(c) (0.53)% Ratio of net investment income to average net assets before waiver & reimbursement (0.69)% (0.79)% (0.35)% (1.09)% (0.84)% (0.95)(c) (1.14)% Portfolio turnover rate 16.17% 44.72% 33.40% 77.87% 75.69% 45.19% 81.74%
(a) For the period November 1, 1998 through June 30, 1999. (b) For periods of less than a full year, total return is not annualized. (c) Annualized. See accompanying notes which are an integral part of the financial statements. IMS Strategic Allocation Fund Financial Highlights Six Months ended December 31, 2003 Period ended (Unaudited) June 30, 2003 (a) ------------------------ ---------------- Selected Per Share Data Net asset value, beginning of period $ 10.56 $ 10.00 ------------------------ ---------------- Income from investment operations Net investment income (loss) (0.06) (0.05) Net realized and unrealized gain (loss) 1.59 0.61 ------------------------ ---------------- Total from investment operations 1.53 0.56 ------------------------ ---------------- Less Distributions to shareholders: From net investment income - - From net realized gain (0.11) - ------------------------ ---------------- Total distributions (0.11) - ------------------------ ---------------- Net asset value, end of period $ 11.98 $ 10.56 ======================== ================ Total Return (b) 14.64% 5.60% Ratios and Supplemental Data Net assets, end of period (000) $ 10,530 $ 3,900 Ratio of expenses to average net assets (c) 1.96% 1.96% Ratio of expenses to average net assets before waiver & reimbursement (c) 2.65% 4.75% Ratio of net investment income to average net assets (c) (1.09)% 0.85% Ratio of net investment income to average net assets before waiver & reimbursement (c) (1.78)% (3.65)% Portfolio turnover rate 43.45% 226.36%
(a) For the period November 5, 2002 (Commencement of operations) through June 30, 2003. (b) For periods of less than a full year, total return is not annualized. (c) Annualized. See accompanying notes which are an integral part of the financial statements. IMS Funds Notes to Financial Statements December 31, 2003 (Unaudited) NOTE 1. ORGANIZATION IMS Capital Value Fund (the "Capital Value Fund") was organized as a diversified series of AmeriPrime Funds (the "Trust") on July 25, 1996 and commenced operations on August 5, 1996. The IMS Strategic Allocation Fund (the "Strategic Allocation Fund") was organized as a non-diversified series of the Trust on September 30, 2002 and commenced operations on November 5, 2002. The Trust is an open-end investment company established under the laws of Ohio by an Agreement and Declaration of Trust dated August 8, 1995 (the "Trust Agreement"). The Trust Agreement permits the Trustees to issue an unlimited number of shares of beneficial interest of separate series without par value. Each Fund is one of a series of funds currently authorized by the Trustees. The investment objective of the Capital Value Fund is to provide long-term growth from capital appreciation, dividends and interest. The investment objective of the Strategic Allocation Fund is to provide long-term growth from capital appreciation, dividends and interest. The investment advisor of each Fund is IMS Capital Management, Inc. (the "Advisor"). NOTE 2. SIGNIFICANT ACCOUNTING POLICIES The following is a summary of significant accounting policies followed by each Fund in the preparation of its financial statements. Securities Valuations - Equity 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. Securities that are traded on any stock exchange are generally valued by the pricing service at the last quoted sale price. Lacking a last sale price, an exchange traded security is generally valued by the pricing service at its last bid price. Securities traded in the NASDAQ over-the-counter market are generally valued by the pricing service at the NASDAQ Official Closing Price. When market quotations are not readily available, when the Advisor determines that the market quotation or the price provided by the pricing service does not accurately reflect the current market value or when restricted or illiquid 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. 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, 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. Option writing - When each Fund writes an option, an amount equal to the premium received by each Fund is recorded as a liability and is subsequently adjusted to the current fair value of the option written. Premiums received from writing options that expire unexercised are treated by each Fund on the expiration date as realized gains from investments. The difference between the premium and the amount paid on effecting a closing purchase transaction, including brokerage commissions, is also treated as a realized gain, or if the premium is less than the amount paid for the closing purchase transaction, as a realized loss. If a call option is exercised, the premium is added to the proceeds from the sale of the underlying security IMS Funds Notes to Financial Statements December 31, 2003 (Unaudited) - continued NOTE 2. SIGNIFICANT ACCOUNTING POLICIES - continued or currency in determining whether each Fund has realized a gain or loss. If a put option is exercised, the premium reduces the cost basis of the securities purchased by each Fund. Each Fund as writer of an option bears the market risk of an unfavorable change in the price of the security underlying the written option. Federal Income Taxes- There is no provision for federal income tax. Each Fund intends to continue to qualify each year as a "regulated investment company" under subchapter M of the Internal Revenue Code of 1986, as amended, by distributing substantially all of its net investment income and net realized capital gains. Security Transactions and Related Income- Each Fund follows industry practice and records security transactions on the trade date. The specific identification method is used for determining gains or losses for financial statements and income tax purposes. Dividend income is recorded on the ex-dividend date and interest income is recorded on an accrual basis. Discounts and premiums on securities purchased are amortized over the life of the respective securities. Dividends and Distributions- Each Fund intends to distribute substantially all of its net investment income as dividends to its shareholders on at least an annual basis. Each Fund intends to distribute its net realized long term capital gains and its net realized short term capital gains at least once a year. The treatment for financial reporting purposes of distributions made to shareholders during the year from net investment income or net realized capital gains may differ from their ultimate treatment for federal income tax purposes. These differences are caused primarily by differences in the timing of the recognition of certain components of income, expense or realized capital gain for federal income tax purposes. Where such differences are permanent in nature, they are reclassified in the components of the net assets based on their ultimate characterization for federal income tax purposes. Any such reclassifications will have no effect on net assets, results of operations or net asset values per share of the Fund. NOTE 3. FEES AND OTHER TRANSACTIONS WITH AFFILIATES Each Fund retains IMS Capital Management, Inc. to manage the Fund's investments. Under the terms of the respective management agreements (the "Agreement"), the Advisor manages each 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 each Fund. For the six months ended December 31, 2003, the Advisor earned a fee of $275,773 from the Capital Value Fund. For the six months ended December 31, 2003, the Advisor earned a fee of $43,949 from the Strategic Allocation Fund. The Advisor has contractually agreed to waive all or a portion of its fees and/or reimburse expenses of each Fund, but only to the extent necessary to maintain total operating expenses (excluding brokerage costs, borrowing costs, taxes and extraordinary expenses) at 1.59% of average daily net assets with respect to the Capital Value Fund, and 1.96% of average daily net assets with respect to the Strategic Allocation Fund, through October 31, 2006. For the six months ended December 31, 2003, the Advisor reimbursed expenses of $18,902 for the Capital Value Fund. For the six months ended December 31, 2003, the Advisor reimbursed expenses of $23,965 for the Strategic Allocation Fund. With respect to the Strategic Allocation Fund, any waiver or reimbursement of organizational or operating expenses by the Advisor is subject to repayment by the Fund within the three fiscal years following the year ending June 30, 2003, if the Fund is able to make the payment without exceeding the above described expense limitations. At December 31, 2003, the Capital Value Fund owed the Advisor $67,591 for its advisory services and the Strategic Allocation Fund was owed $4,666 from the Advisor. IMS Funds Notes to Financial Statements December 31, 2003 (Unaudited) - continued NOTE 3. FEES AND OTHER TRANSACTIONS WITH AFFILIATES - continued Each 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 services, including all regulatory reporting and necessary office equipment and personnel. For those services Unified receives a monthly fee from each Fund equal to an annual rate of 0.10% of the Fund's average daily net assets under $50 million, 0.07% of the Fund's average daily net assets from $50 million to $100 million, and 0.05% of the Fund's average daily net assets over $100 million (subject to a minimum fee of $2,500 per month). For the six months ended December 31, 2003, Unified earned $21,962 from the Capital Value Fund and $11,664 from the Strategic Allocation Fund. Each Fund also retains Unified to act as each Fund's transfer agent and fund accountant. For its services as transfer agent, Unified receives a monthly fee from each Fund of $1.25 per shareholder (subject to a minimum monthly fee of $1,250) for these transfer agency services. For the six months ended December 31, 2003, Unified received fees of $9,698 from the Capital Value Fund and $5,699 from the Strategic Allocation Fund for transfer agent services provided to the Funds and $6,001 and $3,005 from the Capital Value Fund and Strategic Allocation Fund, respectively, in reimbursement for out-of-pocket expenses incurred in providing transfer agent services to the Fund. For its services as fund accountant, Unified receives an annual fee from each Fund equal to 0.05% of the Fund's assets up to $50 million, 0.04% of the Fund's assets from $50 million to $100 million, and 0.03% of the Fund's assets from $100 million to $150 million, and 0.02% of the Fund's net assets over $150 million (subject to a monthly minimum fee of $1,667). For the six months ended December 31, 2003, Unified earned $12,621 from the Capital Value Fund and $8,065 from the Strategic Allocation Fund. Certain Trustees and the officers of the Trust are members of management and employees of Unified, and/or shareholders of Unified Financial Services, Inc. Each Fund retains Unified Financial Securities, Inc., (the "Distributor") 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 for the six months ended December 31, 2003 from the Capital Value Fund or the Strategic Allocation Fund. A Trustee and certain officers of the Trust are a director and/or officers of the Distributor and of Unified Financial Services, Inc. (the parent company of the Distributor and Unified), and may be deemed to be affiliates of the Distributor. NOTE 4. INVESTMENTS For the six months ended December 31, 2003, purchases and sales of investment securities, other than short-term investments and short-term U.S. government obligations were as follows: Capital Value Strategic Allocation Fund Fund ---------------- ----------------------- Purchases U.S. Government Obligations $ - $ - Other 25,272,947 9,284,572 Sales U.S. Government Obligations $ - $ - Other 6,801,708 2,782,439 IMS Funds Notes to Financial Statements December 31, 2003 (Unaudited) - continued NOTE 4. INVESTMENTS - continued As of December 31, 2003, the net unrealized appreciation of investments for tax purposes was as follows: Capital Value Strategic Allocation Fund Fund --------------- ----------------------- Gross Appreciation $ 12,662,872 $ 1,196,630 Gross (Depreciation) (827,427) - -------------- ----------------------- Net Appreciation on Investments $11,835,445 $ 1,196,630 =============== ======================= At December 31, 2003, the aggregate cost of securities for federal income tax purposes was $47,253,254 and $9,524,372 for the Capital Value Fund and the Strategic Allocation Fund, respectively. 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 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, 2003, National Financial Securities Corp. held 40.32% of the Capital Value Fund in an omnibus account for the benefit of others. As of December 31, 2003, National Financial Securities Corp. held 74.64% of the Strategic Allocation Fund in an omnibus account for the benefit of others. NOTE 7. CALL OPTIONS WRITTEN As of December 31, 2003, the Capital Value Fund held no options. Transactions in options written during the six months ended December 31, 2003 for the Capital Value Fund were as follows: Number of Premiums Contracts Received ---------- ------------ Options outstanding at June 30, 2003 758 $104,521 Options written - - Options terminated in closing purchase transactions - - Options expired - - Options exercised (758) (104,521) ---------- ------------ Options outstanding at December 31, 2003 - $ - ========== ============ IMS Funds Notes to Financial Statements December 31, 2003 (Unaudited) - continued NOTE 8. DISTRIBUTIONS TO SHAREHOLDERS Capital Value Fund. The Capital Value Fund distributions for the fiscal years ended June 30, 2003 and 2002 were as follows: Distributions paid from: 2003 2002 ------------- --------------- Ordinary income $39,209 $ - Short-term Capital Gain - 194,339 Long-term Capital Gain - 1,296,845 Return of Capital 31,729 - ------------ --------------- $70,938 $ 1,491,184 ============= =============== On December 18, 2003, the Capital Value Fund paid capital gains distributions of $0.4759 per share to shareholders of record on December 17, 2003. The Capital Value Fund distributions for the six months ended December 31, 2003 and the fiscal year ended June 30, 2003 were as follows: Distributions paid from: December 31, 2003 June 30, 2003 ----------------------- ---------------- Ordinary income $ - $ 39,209 Short-term Capital Gain 680,525 - Long-term Capital Gain 880,256 - Return of Capital - 31,729 ---------------------- ---------------- $ 1,560,781 $ 70,938 ======================= ================ Strategic Allocation Fund. The Strategic Allocation Fund paid no distributions for the period ended June 30, 2003. On December 18, 2003, the Strategic Allocation Fund paid a short-term capital gain distribution of $0.1134 per share to shareholders of record on December 17, 2003. Distributions paid from: December 31, 2003 June 30, 2003 ----------------------- ---------------- Ordinary income $ - $ - Short-term Capital Gain 97,684 - Long-term Capital Gain - - - ---------------------- ---------------- $ 97,684 $ - ======================= ================ PROXY VOTING A description of the policies and procedures that the Fund uses to determine how to vote proxies relating to portfolio securities is available without charge upon request by calling the Fund at (800) 934-5550. 20 TRUSTEES Timothy L. Ashburn, Chairman Gary E. Hippenstiel Stephen A. Little Daniel J. Condon Ronald C. Tritschler OFFICERS Timothy L. Ashburn, President and Asst. Secretary Thomas G. Napurano, Chief Financial Officer and Treasurer Carol J. Highsmith, Secretary INVESTMENT ADVISOR IMS Capital Management, Inc. 8995 S.E. Otty Road Portland, OR 97266 DISTRIBUTOR Unified Financial Securities, Inc. 431 N. Pennsylvania Street Indianapolis, Indiana 46204 INDEPENDENT ACCOUNTANTS McCurdy & Associates CPA's, Inc. 27955 Clemens Rd. Westlake, OH 44145 LEGAL COUNSEL Thompson Hine, LLP 312 Walnut St., Suite 1400 Cincinnati, OH 45202 CUSTODIAN U.S. Bank, N.A. 425 Walnut St. Cincinnati, OH 45202 ADMINISTRATOR, TRANSFER AGENT AND FUND ACCOUNTANT Unified Fund Services, Inc. 431 N. Pennsylvania Street Indianapolis, Indiana 46204 This report is intended only for the information of shareholders or those who have received the Fund's prospectus which contains information about the Fund's management fee and expenses. Please read the prospectus carefully before investing. Distributed by Unified Financial Securities, Inc. Member NASD/SIPC Item 2. Code of Ethics. N/A Item 3. Audit Committee Financial Expert. N/A Item 4. Principal Accountant Fees and Services. N/A Item 5. Audit Committee of Listed Companies. Not applicable. Item 6. Reserved. Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End Funds. Not applicable. Item 8. Purchases of Equity Securities by Closed-End Funds. Not applicable. Item 9. Submission of Matters to a Vote of Security Holders. N/A Item 10. Controls and Procedures. (a) Based on an evaluation of the registrant's disclosure controls and procedures as of January 9, 2004, the disclosure controls and procedures are reasonably designed to ensure that the information required in filings on Forms N-CSR is recorded, processed, summarized, and reported on a timely basis. (b) There were no significant changes in the registrant's internal control over financial reporting that occurred during the registrant's last fiscal half-year that have materially affected, or are reasonably likely to materially affect, the registrant's internal control over financial reporting. Item 11. Exhibits. (a)(1) N/A (a)(2) Certifications by the registrant's principal executive officer and principal financial officer, pursuant to Section 302 of the Sarbanes- Oxley Act of 2002 and required by Rule 30a-2(a) under the Investment Company Act of 1940 are filed herewith. (a)(3) N/A (b) Certification pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 is filed herewith. SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. (Registrant) AmeriPrime Funds By * /s/ Timothy Ashburn ------------------------------------------- Timothy Ashburn, President Date March 10, 2004 Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated. By * /s/ Timothy Ashburn ------------------------------------------- Timothy Ashburn, President Date March 10, 2004 By * Thomas Napurano ------------------------------------------------------------- Thomas Napurano, Treasurer and Chief Financial Officer Date February 26, 2004 EX-32 3 ex99906cert.txt AMERIPRIME FUNDS EX-99.906CERT certification Timothy Ashburn, President, and Thomas Napurano, Chief Financial Officer and Treasurer of AmeriPrime Funds (the "Registrant"), each certify to the best of his or her knowledge that: 1. The Registrant's periodic report on Form N-CSR for the period ended December 31, 2003 (the "Form N-CSR") fully complies with the requirements of Sections 15(d) of the Securities Exchange Act of 1934, as amended; and 2. The information contained in the Form N-CSR fairly presents, in all material respects, the financial condition and results of operations of the Registrant. President Chief Financial Officer and Treasurer AmeriPrime Funds AmeriPrime Funds /s/ Timothy Ashburn /s/ Thomas Napurano Timothy Ashburn Thomas Napurano Date: March 10, 2004 Date: February 26, 2004 ------------------------------- ---------------------- A signed original of this written statement required by Section 906 of the Sarbanes-Oxley Act of 2002 has been provided to AmeriPrime Funds and will be retained by AmeriPrime Funds and furnished to the Securities and Exchange Commission (the "Commission") or its staff upon request. This certification is being furnished to the Commission solely pursuant to 18 U.S.C. ss. 1350 and is not being filed as part of the Form N-CSR filed with the Commission. EX-31 4 ex99cert.txt AMERIPRIME FUNDS Exhibit 99.CERT CERTIFICATIONS I, Timothy Ashburn, certify that: 1. I have reviewed this report on Form N-CSR of AmeriPrime Funds; 2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; 3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the registrant as of, and for, the periods presented in this report; 4. The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) and internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the registrant and have: a) designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; b) designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; c) evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report based on such evaluation; and d) disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal half-year (the registrant's second fiscal half-year in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and 5. The registrant's other certifying officer(s) and I have disclosed to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions): a) all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize, and report financial information; and b) any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. Date: March 10, 2004 /s/ Timothy Ashburn Timothy Ashburn, President I, Thomas Napurano, certify that: 1. I have reviewed this report on Form N-CSR of AmeriPrime Funds; 2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; 3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the registrant as of, and for, the periods presented in this report; 4. The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) and internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the registrant and have: a) designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; b) designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; c) evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report based on such evaluation; and d) disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal half-year (the registrant's second fiscal half-year in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and 5. The registrant's other certifying officer(s) and I have disclosed to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions): a) all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize, and report financial information; and b) any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. Date: February 26, 2004 /s/ Thomas Napurano Thomas Napurano, Chief Financial Officer and Treasurer -----END PRIVACY-ENHANCED MESSAGE-----