-----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, MrN+vVontKzyn2hCdnwNg930+qj25IRcFL13QZqh1216m2Mbn+lPWgJjAndYGZIp DtjN96P8c29IRJZJ0zZh6Q== 0001035449-05-000234.txt : 20050408 0001035449-05-000234.hdr.sgml : 20050408 20050408155924 ACCESSION NUMBER: 0001035449-05-000234 CONFORMED SUBMISSION TYPE: N-CSRS PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 20050131 FILED AS OF DATE: 20050408 DATE AS OF CHANGE: 20050408 EFFECTIVENESS DATE: 20050408 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: 05741569 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 dobsonsemi.txt DOBSON SEMI-ANNUAL 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 North Pennsylvania St. 46204 - ----------------------------------------------------------------------------- (Address of principal executive offices) (Zip code) Lynn Wood - ----------------------------------- Unified Fund Services, Inc. - ----------------------------------- 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: 7/31 ------------ Date of reporting period: 01/31/05 ----------- 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. ss. 3507. ITEM 1. REPORTS TO STOCKHOLDERS. =================================================== DOBSON COVERED CALL FUND =================================================== SEMI-ANNUAL REPORT (UNAUDITED) JANUARY 31, 2005 FUND ADVISOR: DOBSON CAPITAL MANAGEMENT, INC. 1422 S. VAN NESS STREET SANTA ANA, CA 92707 TOLL FREE 877-2-DOBSON (877-236-2766) March 1, 2005 Dear Fellow Shareholders: We are pleased to present the semi-annual report of the Dobson Covered Call Fund (DBCCX) as of January 31, 2005. I would like to refer you to the management discussion and analysis that follows for specific details about the Dobson Covered Call Fund performance, our expectations for the future and other topics in the news regarding the Mutual Fund Industry. We welcome your comments and again thank you for investing with us. Sincerely, Charles L. Dobson Portfolio Manager The prospectus should be read carefully before investing. To request a prospectus for more complete information, including charges and expenses, call toll free 1-877-2-DOBSON OR 1-877-236-2766. Past performance does not guarantee future results. Shares when redeemed may be worth more or less than their original cost. Distributed by Unified Financial Securities, Inc., 431 North Pennsylvania Street Indianapolis, IN 46204 Member NASD, SIPC. 1 MANAGEMENTS DISCUSSION OF FUND PERFORMANCE For the 6 month period ended January 31, 2005 our Fund had a total return of 4.55% while the S&P 500 Index had a total return of 8.12%. From Inception (March 24, 1999) through January 31, 2005 our Fund's annualized return was 1.82%, while the S&P 500 Index annualized return was 0.33%. Our Fund's standard deviation of monthly returns from April 1, 1999 to January 31, 2005 was 3.33% and the S&P 500 standard deviation for the same period was 4.61%. Standard deviation is a statistical term that measures the divergence of returns around the average return. The lower this number the less volatile returns were over the defined time period. VOLATILITY(RISK)COMPARISON DBCCX - 3.33 S&P 500 INDEX - 4.61 For the past six months with the exception of December and January the S&P 500 Index has outperformed the S&P 100 Index. Historically these indices track very closely. For the 12 months, 5 year and 10 year periods ending January 31, 2005 the 500 Index returned 6.23%, -1.77% and 11.51 respectively. Five and ten year results are annualized. The 100 Index returned 2.71%, -4.14% and 11.82%. Looking at the stocks in our portfolio one can see that they are more closely correlated to the 100 Index as opposed to the 500 Index. You may also wish to visit the websites of Lipper and Morningstar to view their assessment of our underlying stocks. The difficulty is in finding an appropriate benchmark when the 100 and 500 Indices differ so much in a relatively short period of time. For the past several years a more appropriate benchmark would be the S&P 100 Index but since the S&P 500 Index is the most quoted we will continue to use that. There will be periods when the 100 Index does better than the 500 Index and our comparative results to the 500 Index will look better than is appropriate. We feel that by explaining how our results were achieved you will see the value of our covered call program as part of your overall asset allocation regardless of what benchmark we use. You will also notice that our portfolio turnover rate is very low. By doing this an investor can more easily evaluate whether our options are adding value to our underlying portfolio. Basically our strategy is to hold a broadly diversified portfolio of common stocks and write options on them with the intent of reducing the volatility of those stocks. The common stocks we hold are very representative of the S&P 500 Index so over time they should perform the same as the Index. As discussed previously there are periods such as the past few years where this won't be the case but there will be periods such as the year 2000 when our underlying stocks will do better than the Index. By reducing the volatility of the underlying stocks we expect to improve on their return over time which is what we have 2 done from inception regardless of which benchmark is used. Our expectations are that we can exceed the performance of our underlying stocks if they don't appreciate more than 10% on an annualized basis. In a year like 2003 when both indices had returns in the high double digits our results will tend to lag and consequently our three year results may not compare favorably. Over time there will also be negative years such as 2000, 2001 and 2002 where our results will compare more favorably. Combining the good years with the bad years we don't expect the market to exceed a growth rate of over 10% annualized and consequently we expect to do better than either Index over time. To get a better understanding of our expectations we refer you to our website, www.dobsoncapital.com. For those of you without access to the internet please - --------------------- call us toll free at 877-546-3066 and we will send you the written explanations. Overall we are pleased with results from inception and believe we have a reasonable probability of meeting expectations in the future. We will continue our investment strategy of using the larger capitalization stocks and writing individual call options on those stocks. As always, past performance does not guarantee future results. MANAGEMENT'S DISCUSSION OF MUTUAL FUND ISSUES 1. Portfolio Ownership. As of January 31, 2005 I am not only the Portfolio Manager of our Fund but am the beneficial owner of approximately 13.7% of the outstanding shares. 2. Soft Dollars. Although soft dollar arrangements are permitted, it is our belief that commission dollars should be used to keep commission costs low. Therefore we have not nor do we intend to use commission dollars to pay for research or other services. 3. Broker/Dealers. Currently we deal with one broker dealer for the purchase and sale of stocks and options. As of this date the Broker/Dealer we use does not and has never had any clients with us. 4. Disaster Recovery. We e-mail a copy of the portfolio any time changes are made to an offsite location located 80 miles from our facility. Should there be a major disaster such as an earthquake we can resume operations in a short period of time. We also back up our data each day so we can move to another building in case of a local power failure. 5. Proxy voting policies. Please contact us if you would like a copy of our proxy voting policies or to see our proxy voting record. 6. 12b-1 fees. The fund does not make use of 12b-1 fees. I hope the above analysis has been useful and informative. Please do not hesitate to call me toll free at 877-546-3066 if you have any questions and please visit our website at www.dobsoncapital.com. --------------------- 3 INVESTMENT RESULTS - ------------------ - -------------------------------------------------------------------------------------------------------- AVERAGE ANNUAL TOTAL RETURNS (FOR PERIODS ENDED JANUARY 31, 2005) SINCE INCEPTION SIX MONTHS ONE YEAR FIVE YEAR (MARCH 24, 1999) -------------- -------------- ------------- -------------------- Dobson Covered Call Fund* 4.55% 4.12% 0.50% 1.82% S&P 500 Index** 8.12% 6.18% -1.80% 0.33% - --------------------------------------------------------------------------------------------------------
The rate 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 Index 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 CHANGE IN VALUE OF A $10,000 INVESTMENT IN THE DOBSON COVERED CALL FUND AND THE UNMANAGED S&P 500 INDEX [GRAPH OMITTED] DOBSON COVERED CALL FUND S&P 500 INDEX $11,119 $10,193 ---------------- ---------------- 3/24/1999 10,000.00 10,000.00 7/31/1999 10,780.00 10,572.59 1/31/2000 10,842.58 11,163.50 7/31/2000 11,167.02 11,520.55 1/31/2001 11,301.17 11,062.55 7/31/2001 10,983.65 9,870.22 1/31/2002 10,858.90 9,270.74 7/31/2002 9,246.19 7,531.63 1/31/2003 8,961.23 7,135.68 7/31/2003 9,884.77 8,332.78 1/31/2004 10,678.44 9,599.94 7/31/2004 10,635.15 9,428.15 1/31/2005 11,118.67 10,193.49 This graph shows the value of a hypothetical initial investment of $10,000 in the Fund and the S&P 500 Index on March 24, 1999 (inception of the Fund) and held through January 31, 2005. The S&P 500 Index is a widely recognized unmanaged index of common stock prices. The Index returns do not reflect expenses, which have been deducted from the Fund's return. These performance figures include the change in value of the stocks in the index plus the reinvestment of dividends and are not annualized. The 4 returns shown do not reflect deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. THE FUND'S RETURN REPRESENTS PAST PERFORMANCE AND DOES NOT PREDICT FUTURE RESULTS. Investment returns and principal values will fluctuate so that our shares, when redeemed, may be worth more or less than their original purchase price. For more information on the Dobson Covered Call Fund, please call 1-877-2-Dobson or 1-877-236-2766 to request a prospectus. Investing in the Fund involves certain risks that are discussed in the Fund's prospectus. Please read the prospectus carefully before you invest or send money. The fund's investment objectives, risks, charges and expenses must be considered carefully before investing. The prospectus contains this and other important information about the investment company, and it may be obtained by visiting www.dobsoncapital.com or by calling Unified Fund Services at 1-877-236-2766. - --------------------- Read it carefully before investing. Figures include changes in principal value, reinvested dividend and capital gain distributions. The Dobson Covered Call Fund is distributed by Unified Financial Securities, Inc., 431 N. Pennsylvania St., Indianapolis, Indiana 46204 5 FUND HOLDINGS - (UNAUDITED) - ------------- DOBSON COVERED CALL FUND PERCENT OF PORTFOLIO HEDGED AS OF JANUARY 31, 2005 1 95.77% 2 4.23% 3 1As a percent of portfolio holdings 2Percent of portfolio hedged by covered call options 3Percent of portfolio unhedged Under normal circumstances, at least 80% of the Fund's portfolio will be hedged using covered call options. AVAILABILITY OF PORTFOLIO SCHEDULE - (UNAUDITED) - ---------------------------------- The Fund files its complete schedule of portfolio holdings with the Securities and Exchange Commission ("SEC") for the first and third quarters of each fiscal year on Form N-Q. The Fund's Form N-Qs are available at the SEC's website at www.sec.gov. The Fund's Form N-Qs may be reviewed and copied at the Public Reference Room in Washington DC. Information on the operation of the Public Reference Room may be obtained by calling 1-800-SEC-0330. SUMMARY OF FUND'S EXPENSES - (UNAUDITED) - -------------------------- As a shareholder of the Fund, you incur ongoing costs, including management fees, and other Fund expenses. This Example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds. The example is based on an investment of $1,000 invested at the beginning of the period (August 1, 2004) and held for the entire period (through January 31, 2005). Actual Expenses - --------------- The first line of the table below provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.60), then multiply the result by the number in the first line under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period. 6 Hypothetical Example for Comparison Purposes - -------------------------------------------- The second line of the table below provides information about hypothetical account values and hypothetical expenses based on the Fund's actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund's actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. - ---------------------------------- -------------------- -------------------------- -------------------------- DOBSON COVERED CALL FUND BEGINNING ACCOUNT ENDING EXPENSES PAID DURING VALUE ACCOUNT VALUE PERIOD AUGUST 1, 2004 - AUGUST 1, 2004 JANUARY 31, 2005 JANUARY 31, 2005* - ---------------------------------- -------------------- -------------------------- -------------------------- Actual $1,000.00 $1,045.50 $7.73 (-0.41% return) - ---------------------------------- -------------------- -------------------------- -------------------------- Hypothetical $1,000.00 $1,017.64 $7.63 (5% return before expenses) - ---------------------------------- -------------------- -------------------------- -------------------------- * Expenses are equal to the Fund's annualized expense ratio of 1.50%, multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period).
7 DOBSON COVERED CALL FUND SCHEDULE OF INVESTMENTS JANUARY 31, 2005 (UNAUDITED) COMMON STOCKS - 100.11% SHARES VALUE ------------ ------------------ AIR COURIER SERVICES - 1.46% FedEx Corp. (a) 1,000 $ 95,650 ------------------ AIRCRAFT - 2.40% Boeing Co. (a) 3,100 156,860 ------------------ BEVERAGES - 3.54% Coca-Cola Co. (a) 3,000 124,470 PepsiCo, Inc. (a) 2,000 107,400 ------------------ 231,870 ------------------ BIOLOGICAL PRODUCTS - 1.90% Amgen, Inc. (a) (b) 2,000 124,480 ------------------ CABLE & OTHER PAY TELEVISION SERVICES - 3.34% Comcast Corp. Class A (a) (b) 3,323 106,968 Viacom, Inc. - Class B (a) 3,000 112,020 ------------------ 218,988 ------------------ CHEMICAL & ALLIED PRODUCTS - 1.52% Dow Chemical Co. (a) 2,000 99,400 ------------------ COMPUTER COMMUNICATION EQUIPMENT - 1.65% Cisco Systems, Inc. (a) (b) 6,000 108,240 ------------------ COMPUTERS & OFFICE EQUIPMENT - 2.85% International Business Machines Corp. (a) 2,000 186,840 ------------------ CONSTRUCTION MACHINERY & EQUIPMENT - 1.36% Caterpillar, Inc. (a) 1,000 89,100 ------------------ CONVERTED PAPER & PAPERBOARD PRODUCTS - 1.29% 3M Co. (a) 1,000 84,360 ------------------ CUTLERY, HANDTOOLS & GENERAL HARDWARE - 1.86% The Gillette Co. (a) 2,400 121,728 ------------------ DIVERSIFIED - 1.37% Honeywell International, Inc. (a) 2,500 89,950 ------------------ ELECTRIC SERVICES - 2.91% Dominion Resources, Inc. 1,000 69,380 Duke Energy, Inc. 2,000 53,580 The Southern Co. 2,000 67,540 ------------------ 190,500 ------------------ ELECTROMEDICAL & ELECTROTHERAPEUTIC APPARATUS - 1.60% Medtronic, Inc. (a) 2,000 104,980 ------------------
See accompanying notes which are an integral part of the financial statements. 8 DOBSON COVERED CALL FUND SCHEDULE OF INVESTMENTS -CONTINUED JANUARY 31, 2005 (UNAUDITED) COMMON STOCKS - 100.11% - CONTINUED SHARES VALUE ------------ ------------------ ELECTRONIC & OTHER ELECTRICAL EQUIPMENT - 2.76% General Electric Co. (a) 5,000 $ 180,650 ------------------ ELECTRONIC COMPUTERS - 2.55% Dell, Inc. (a) (b) 4,000 167,040 ------------------ FINANCE SERVICES - 6.02% American Express Co. (a) 3,000 160,050 First Data Corp. (a) 3,000 122,220 Morgan Stanley (a) 2,000 111,920 ------------------ 394,190 ------------------ FIRE, MARINE & CASUALTY INSURANCE - 2.02% American International Group, Inc. (a) 2,000 132,580 ------------------ MOTOR VEHICLES & PASSENGER CAR BODIES - 1.33% Ford Motor Co. 1,000 13,170 General Motors Corp. (a) 2,000 73,620 ------------------ 86,790 ------------------ NATIONAL COMMERCIAL BANKS - 11.58% Bank of America Corp. (a) 4,000 185,480 Citigroup, Inc. (a) 4,133 202,724 J.P. Morgan Chase & Co.(a) 4,980 185,903 Wells Fargo & Co. (a) 3,000 183,900 ------------------ 758,007 ------------------ OIL & GAS FIELD SERVICES - 2.08% Schlumberger Ltd. (a) 2,000 136,080 ------------------ PAPER MILLS - 1.20% International Paper Co. (a) 2,000 78,300 ------------------ PETROLEUM REFINING - 5.69% ChevronTexaco Corp. (a) 4,000 217,600 Exxon Mobil Corp. (a) 3,000 154,800 ------------------ 372,400 ------------------ PHARMACEUTICAL PREPARATIONS - 7.45% Bristol-Myers Squibb, Inc. (a) 3,000 70,320 Johnson & Johnson (a) 2,000 129,400 Merck & Co., Inc. (a) 3,000 84,150 Pfizer, Inc. (a) 4,400 106,304 Schering-Plough Corp. 1,000 18,560 Wyeth (a) 2,000 79,260 ------------------ 487,994 ------------------
See accompanying notes which are an integral part of the financial statements. 9 DOBSON COVERED CALL FUND SCHEDULE OF INVESTMENTS - CONTINUED JANUARY 31, 2005 (UNAUDITED) COMMON STOCKS - 100.11% - CONTINUED SHARES VALUE ------------ ------------------ PHOTOGRAPHIC EQUIPMENT & SUPPLIES - 0.51% Eastman Kodak, Inc. (a) 1,000 $ 33,090 ------------------ RADIO & TV BROADCASTING & COMMUNICATIONS EQUIPMENT - 1.70% QUALCOMM, Inc. (a) 3,000 111,720 ------------------ RETAIL - DRUG STORES & PROPRIETARY STORES - 2.11% Medco Health Solutions, Inc. (b) 241 10,259 Walgreen Co. (a) 3,000 127,830 ------------------ 138,089 ------------------ RETAIL - EATING PLACES - 1.48% McDonald's Corp. (a) 3,000 97,170 ------------------ RETAIL - LUMBER & OTHER BUILDING MATERIALS DEALERS - 2.52% Home Depot, Inc. (a) 4,000 165,040 ------------------ RETAIL - VARIETY STORES - 4.73% Target Corp. (a) 3,000 152,310 Wal-Mart Stores, Inc. (a) 3,000 157,200 ------------------ 309,510 ------------------ SECURITY BROKERS, DEALERS & FLOTATION COMPANIES - 2.01% The Charles Schwab Corp. 1,000 11,240 Merrill Lynch & Co., Inc. (a) 2,000 120,140 ------------------ 131,380 ------------------ SEMICONDUCTORS & RELATED DEVICES - 3.13% Agere Systems, Inc. - Class B (b) 264 380 Intel Corp. (a) 6,000 134,700 Texas Instruments, Inc. (a) 3,000 69,630 ------------------ 204,710 ------------------ SERVICES - MISCELLANEOUS AMUSEMENT & RECREATION - 1.75% Walt Disney Co. (a) 4,000 114,520 ------------------ SERVICES - PREPACKAGED SOFTWARE - 2.83% Microsoft Corp. (a) 6,000 157,680 Oracle Corp. (b) 2,000 27,540 ------------------ 185,220 ------------------ SOAP, DETERGENT, CLEANING PREPARATIONS, PERFUMES, COSMETICS - 2.44% Procter & Gamble, Inc. (a) 3,000 159,690 ------------------ TELEPHONE & TELEGRAPH APPARATUS - 0.05% Lucent Technologies, Inc. (b) 1,000 3,260 ------------------
See accompanying notes which are an integral part of the financial statements. 10 DOBSON COVERED CALL FUND SCHEDULE OF INVESTMENTS - CONTINUED JANUARY 31, 2005 (UNAUDITED) COMMON STOCKS - 100.11% - CONTINUED SHARES VALUE ------------ ------------------ TELEPHONE COMMUNICATIONS - 3.12% AT&T Corp. (a) 1,600 $ 30,704 BellSouth Corp. (a) 3,000 78,720 SBC Communications, Inc. (a) 4,000 95,040 ------------------ 204,464 ------------------ TOTAL COMMON STOCKS (COST $6,278,372) 6,554,840 ------------------ MONEY MARKET SECURITIES - 2.65% Federal Prime Obligation Fund, 2.13% (c) 173,437 173,437 ------------------ TOTAL MONEY MARKET SECURITIES (COST $173,437) 173,437 ------------------ TOTAL INVESTMENTS (COST $6,451,809) - 102.76% $ 6,728,277 ------------------ LIABILITIES IN EXCESS OF CASH AND OTHER ASSETS - (2.76)% (180,560) ------------------ TOTAL NET ASSETS - 100.00% $ 6,547,717 ================== (a) Portion of the security is pledged as collateral for call options written. (b) Non-income producing. (c) Variable rate security; the coupon rate shown represents the rate at January 31, 2005.
See accompanying notes which are an integral part of the financial statements. 11 DOBSON COVERED CALL FUND SCHEDULE OF INVESTMENTS - CONTINUED JANUARY 31, 2005 (UNAUDITED) OPTIONS WRITTEN JANUARY 31, 2005 SHARES SUBJECT COMMON STOCKS / EXPIRATION DATE @ EXERCISE PRICE TO CALL VALUE - ------------------------------------------------ ------------ ------------------ American Express Co. / July 2005 @ 50 2,000 $ 500 American Express Co. / April 2005 @ 55 1,000 850 American International Group, Inc. / May 2005 @ 75 1,000 3,400 American International Group, Inc. / February 2005 @ 75 1,000 150 Amgen, Inc. / July 2005 @ 65 1,000 2,300 Amgen, Inc. / April 2005 @ 65 1,000 1,000 American Telephone & Telegraph Co. / April 2005 @ 20 1,600 480 Bank of America Corp. / February 2005 @ 47.5 2,000 400 Bank of America Corp. / February 2005 @ 45 2,000 3,000 BellSouth Corp. / April 2005 @ 30 1,500 75 BellSouth Corp. / July 2005 @ 27.5 1,500 1,050 Boeing Co. / February 2005 @ 55 1,100 110 Boeing Co. / February 2005 @ 50 2,000 2,300 Bristol-Myers Squibb Co. / March 2005 @ 25 1,500 225 Bristol-Myers Squibb Co. / June 2005 @ 27.5 1,500 75 Caterpillar, Inc. / February 2005 @ 50 1,000 1,100 ChevronTexaco Corp. / June 2005 @ 55 2,000 3,600 ChevronTexaco Corp. / March 2005 @ 50 2,000 7,200 Cisco Systems, Inc. / July 2005 @ 20 2,000 1,100 Cisco Systems, Inc. / April 2005 @ 17.5 2,000 2,400 Cisco Systems, Inc. / April 2005 @ 20 2,000 600 Citigroup, Inc. / June 2005 @ 50 1,800 2,250 Citigroup, Inc. / March 2005 @ 47.5 2,300 4,370 Coca-Cola Co. / May 2005 @ 42.5 1,500 1,275 Coca-Cola Co. / February 2005 @ 47.5 1,500 375 Comcast Corp. Class A / July 2005 @ 35 1,000 850 Comcast Corp. Class A / April 2005 @ 30 2,300 6,095 Dell, Inc. / May 2005 @ 42 2,000 2,600 Dell, Inc. / February 2005 @ 37.5 2,000 8,400 Disney Co. / April 2005 @ 27.5 2,000 4,000 Disney Co. / July 2005 @ 27.5 2,000 4,900 Dow Chemical / June 2005 @ 50 1,000 2,400 Dow Chemical / March 2005 @ 45 1,000 5,200 Eastman Kodak, Inc. / April 2005 @ 32.5 1,000 1,800 Exxon Mobil Corp. / July 2005 @ 55 1,000 850 Exxon Mobil Corp. / April 2005 @ 50 2,000 5,000 FedEx Corp. / January 2005 @ 95 1,000 3,700 First Data Corp. / February 2005 @ 42.5 1,000 100 First Data Corp. / May 2005 @ 45 2,000 900 General Electric Co. / June 2005 @ 37.5 1,500 1,050 General Electric Co. / March 2005 @ 37.5 1,500 300 General Electric Co. March 2005 @ 35 2,000 2,900
See accompanying notes which are an integral part of the financial statements. 12 DOBSON COVERED CALL FUND SCHEDULE OF INVESTMENTS - CONTINUED JANUARY 31, 2005 (UNAUDITED) OPTIONS WRITTEN JANUARY 31, 2005 - CONTINUED SHARES SUBJECT COMMON STOCKS / EXPIRATION DATE @ EXERCISE PRICE TO CALL VALUE - ------------------------------------------------ ------------ ------------------ General Motors Corp. / June 2005 @ 40 1,000 $ 650 General Motors Corp. / March 2005 @ 40 1,000 100 Gillette Co. / March 2005 @ 45 2,400 15,840 Home Depot, Inc. / May 2005 @ 45 2,000 600 Home Depot, Inc. / February 2005 @ 37.5 2,000 7,800 Honeywell International, Inc. / March 2005 @ 37.5 1,000 300 Honeywell International, Inc. / June 2005 @ 37.5 1,500 1,650 Intel Corp. / April 2005 @ 25 2,000 400 Intel Corp. / April 2005 @ 22.5 2,000 1,900 Intel Corp. / March 2005 @ 22.5 2,000 1,400 IBM Corp. / February 2005 @ 95 1,000 500 IBM Corp. / April 2005 @ 90 1,000 4,700 International Paper Co. / April 2005 @ 42.5 1,000 150 Johnson & Johnson / July 2005 @ 65 1,000 2,500 Johnson & Johnson / April 2005 @ 60 1,000 5,100 J.P. Morgan Chase & Co. / March 2005 @ 40 1,500 225 J.P. Morgan Chase & Co. / March 2005 @ 37.5 1,500 1,275 J.P. Morgan Chase & Co. / June 2005 @ 40 1,900 855 McDonald's Corp. / June 2005 @ 32.5 1,500 2,250 McDonald's Corp. / March 2005 @ 30 1,500 3,900 Medtronic, Inc. / May 2005 @ 50 1,000 3,800 Medtronic, Inc. / February 2005 @ 50 1,000 2,450 Merck & Co., Inc. / April 2005 @ 47.5 1,000 50 Merrill Lynch & Co., Inc. / April 2005 @ 55 1,000 5,600 Merrill Lynch & Co., Inc. / July 2005 @ 60 1,000 2,900 Microsoft Corp. / April 2005 @ 27.50 2,000 400 Microsoft Corp. / April 2005 @ 30 2,000 800 3M Co. / April 2005 @ 80 1,000 5,300 Morgan Stanley / April 2005 @ 55 1,000 2,650 Morgan Stanley / June 2005 @ 60 1,000 1,400 PepsiCo, Inc. / July 2005 @ 55 2,000 3,000 Pfizer, Inc. / February 2005 @ 27.5 2,000 100 Procter & Gamble Co. / April 2005 @ 55 1,500 1,200 Procter & Gamble Co. / July 2005 @ 55 1,500 375 QUALCOMM, Inc. / April 2005 @ 42.5 1,500 600 QUALCOMM, Inc. / March 2005 @ 40 1,500 825 SBC Communications, Inc. / April 2005 @ 27.5 2,000 100 SBC Communications, Inc. / July 2005 @ 25 2,000 1,200 Schlumberger Ltd. / February 2005 @ 60 1,000 8,100 Schlumberger Ltd. / May 2005 @ 70 1,000 2,650 Target Corp. / April 2005 @ 50 1,500 3,375 Target Corp. / July 2005 @ 50 1,500 4,650
See accompanying notes which are an integral part of the financial statements. 13 DOBSON COVERED CALL FUND SCHEDULE OF INVESTMENTS - CONTINUED JANUARY 31, 2005 (UNAUDITED) OPTIONS WRITTEN JANUARY 31, 2005 - CONTINUED SHARES SUBJECT COMMON STOCKS / EXPIRATION DATE @ EXERCISE PRICE TO CALL VALUE - ------------------------------------------------ ------------ ------------------ Texas Instruments, Inc. / March 2005 @ 22.5 1,500 $ 2,025 Texas Instruments, Inc. / April 2005 @ 25 1,500 750 Viacom, Inc. / March 2005 @ 35 1,500 3,900 Viacom, Inc. / June 2005 @ 37.5 1,500 2,580 Wal-Mart Stores, Inc. / March 2005 @ 55 1,500 525 Wal-Mart Stores, Inc. / June 2004 @ 55 1,500 1,500 Walgreen Co. / April 2005 @ 37.5 1,500 8,400 Walgreen Co. / July 2005 @ 45 1,500 1,725 Wells Fargo & Co. / April 2005 @ 65 2,000 300 Wells Fargo & Co. / July 2005 @ 60 1,000 2,600 Wyeth / July 2005 @ 45 1,000 490 Wyeth / April 2005 @ 40 1,000 1,350 ------------ ------------------ Total (premiums received $213,084) 143,900 $ 220,995 ============ ==================
See accompanying notes which are an integral part of the financial statements. 14 DOBSON COVERED CALL FUND STATEMENT OF ASSETS AND LIABILITIES JANUARY 31, 2005 (UNAUDITED) ASSETS Investments in securities, at value (cost $6,451,809) $ 6,728,277 Cash 1,211 Interest receivable 367 Dividends receivable 7,638 Receivable due from advisor 33,959 Prepaid expenses 3,758 ----------------- TOTAL ASSETS 6,775,210 ----------------- LIABILITIES Covered call options written (premiums received $213,084) 220,995 Payable to affiliates 4,437 Accrued expenses 1,686 Accrued trustee & officer expense 375 ----------------- TOTAL LIABILITIES 227,493 ----------------- NET ASSETS $ 6,547,717 ================= NET ASSETS CONSIST OF: Paid in capital 6,400,167 Accumulated undistributed net investment income 19,681 Accumulated net realized (loss) on investments (140,688) Net unrealized appreciation (depreciation) on: Investments 276,468 Options (7,911) ----------------- NET ASSETS $ 6,547,717 ================= Shares outstanding (unlimited number of shares authorized) 854,060 ----------------- NET ASSET VALUE Offering and redemption price per share $ 7.67 =================
See accompanying notes which are an integral part of the financial statements. 15 DOBSON COVERED CALL FUND STATEMENT OF OPERATIONS FOR THE SIX MONTHS ENDED JANUARY 31, 2005 (UNAUDITED) INVESTMENT INCOME Dividend income $ 76,408 Interest income 2,395 --------------- TOTAL INCOME 78,803 --------------- EXPENSES Investment advisor fee (a) - Legal expenses 14,104 Administration expenses 13,165 Fund accounting expenses 11,579 Transfer agent expenses 10,251 Custodian expenses 10,081 Auditing expenses 5,822 Pricing expenses 5,161 Trustee and officer expenses 4,057 Registration expenses 1,731 Insurance expenses 1,292 Miscellaneous expenses 1,124 Printing expenses 110 --------------- TOTAL EXPENSES 78,477 Reimbursed expenses (a) (29,853) --------------- Total operating expenses 48,624 --------------- NET INVESTMENT INCOME 30,179 --------------- REALIZED & UNREALIZED GAIN (LOSS) Net realized gain on options transactions 17,397 Net realized (loss) on investment securities (18,526) Change in unrealized appreciation (depreciation) on investment securities 255,550 --------------- Net realized and unrealized gain (loss) on investment securities 254,421 --------------- NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $ 284,600 =============== (a) See note 3 in notes to the financial statements
See accompanying notes which are an integral part of the financial statements. 16 DOBSON COVERED CALL FUND STATEMENTS OF CHANGES IN NET ASSETS SIX MONTHS ENDED JANUARY 31, 2005 YEAR ENDED INCREASE (DECREASE) IN NET ASSETS (UNAUDITED) JULY 31, 2004 ---------------------- --------------------- OPERATIONS Net investment income $ 30,179 $ 19,675 Net realized gain on investment securities 17,397 28,564 Net realized gain (loss) on options transactions (18,526) (131,118) Change in unrealized appreciation / (depreciation) 255,550 458,477 ---------------------- --------------------- Net increase in net assets resulting from operations 284,600 375,598 ---------------------- --------------------- DISTRIBUTIONS From net investment income (30,173) - From net realized gain - - ---------------------- --------------------- Total distributions (30,173) - ---------------------- --------------------- CAPITAL SHARE TRANSACTIONS Proceeds from shares sold 483,960 1,744,959 Reinvestment of distributions 15,631 - Amount paid for shares repurchased (464,681) (659,957) ---------------------- --------------------- Net increase in net assets resulting from share transactions 34,910 1,085,002 ---------------------- --------------------- TOTAL INCREASE IN NET ASSETS 289,337 1,460,600 ---------------------- --------------------- NET ASSETS Beginning of period 6,258,380 4,797,780 ---------------------- --------------------- End of period $ 6,547,717 $ 6,258,380 ====================== ===================== Accumulated undistributed net investment income included in net assets $ 19,681 $ 19,675 ---------------------- --------------------- CAPITAL SHARE TRANSACTIONS Shares sold 64,365 239,656 Shares issued in reinvestment of distributions 2,025 - Shares repurchased (62,046) (89,858) ---------------------- --------------------- Net increase from capital share transactions 4,344 149,798 ====================== =====================
See accompanying notes which are an integral part of the financial statements. 17 DOBSON COVERED CALL FUND FINANCIAL HIGHLIGHTS FOR A SHARE OUTSTANDING DURING THE PERIOD SIX MONTHS ENDED JANUARY 31, 2005 YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED (UNAUDITED) JULY 31, 2004 JULY 31, 2003 JULY 31, 2002 JULY 31, 2001 JULY 31, 2000 -------------- -------------- -------------- ------------ ------------ ------------- SELECTED PER SHARE DATA Net asset value, beginning of perio $ 7.37 $ 6.85 $ 6.88 $ 9.34 $ 10.67 $ 10.78 -------------- -------------- -------------- ------------ ------------ ------------- Income from investment operations Net investment income 0.06 0.02 0.03 0.02 0.04 0.03 Net realized and unrealized gain (loss) 0.28 0.50 0.42 (1.36) (0.22) 0.35 -------------- -------------- -------------- ------------ ------------ ------------- Total from investment operations 0.34 0.52 0.45 (1.34) (0.18) 0.38 -------------- -------------- -------------- ------------ ------------ ------------- LESS DISTRIBUTIONS TO SHAREHOLDERS: From net investment income (0.04) - (0.02) (0.03) (0.18) (0.01) From net realized gain - - (0.46) (1.09) (0.97) (0.48) -------------- -------------- -------------- ------------ ------------ ------------- Total distributions (0.04) - (0.48) (1.12) (1.15) (0.49) -------------- -------------- -------------- ------------ ------------ ------------- Net asset value, end of period $ 7.67 $ 7.37 $ 6.85 $ 6.88 $ 9.34 $ 10.67 ============== ============== ============== ============ ============ ============= TOTAL RETURN (a) 4.55% (b) 7.59% 6.91% -15.82% -1.64% 3.59% RATIOS AND SUPPLEMENTAL DATA Net assets, end of period (000) $ 6,548 $ 6,258 $ 4,798 $ 1,392 $ 1,652 $ 1,540 Ratio of expenses to average net ass 1.50% (c) 1.50% 1.50% 1.50% 1.50% 1.50% Ratio of expenses to average net assets before waiver & reimbursement 3.23% (c) 1.98% 4.83% 5.51% 5.19% 5.47% Ratio of net investment income to average net assets 0.93% (c) 0.34% 0.48% 0.26% 0.44% 0.31% Ratio of net investment income to average net assets before waiver (0.79)(c) (0.14)% (2.85)% (3.75)% (3.25)% (3.66)% Portfolio turnover rate 2.38% 10.25% 0.47% 6.51% 6.62% 31.75% (a) Total return in the above table represents the rate that investor would have earned or lost on an investment in the Fund, assuming reinvestment of dividends. (b) Not annualized (c) Annualized.
See accompanying notes which are an integral part of the financial statements. 18 DOBSON COVERED CALL FUND NOTES TO THE FINANCIAL STATEMENTS JANUARY 31, 2005 (UNAUDITED) NOTE 1. ORGANIZATION Dobson Covered Call Fund (the "Fund") was organized as a diversified series of the AmeriPrime Funds (the "Trust") on March 22, 1999 and commenced operations on March 24, 1999. 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. The Fund is one of a series of funds currently authorized by the Trustees. The Fund's investment objective is total return over the long term. The investment advisor to the Fund is Dobson Capital Management, Inc. (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 - 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 (the "Board"). Fixed income securities generally are valued by using market quotations, but may be valued on the basis of prices furnished by a pricing service when the Advisor believes such prices accurately reflect the fair market value of such securities. A pricing service utilizes electronic data processing techniques based on yield spreads relating to securities with similar characteristics to determine prices for normal institutional-size trading units of debt securities without regard to sale or bid prices. 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. 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 the Fund writes an option, an amount equal to the premium received by the Fund is recorded as a liability and is subsequently adjusted to the current market value of the option written. Premiums received from writing options that expire unexercised are treated by the 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 or currency in determining whether the Fund has realized a gain or loss. The 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. The 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. If the required amount of net investment income is not distributed, the Fund could incur a tax expense. 19 DOBSON COVERED CALL FUND NOTES TO THE FINANCIAL STATEMENTS JANUARY 31, 2005 - CONTINUED (UNAUDITED) NOTE 2. SIGNIFICANT ACCOUNTING POLICIES - CONTINUED Security Transactions and Related 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. Distributions to Shareholders - The Fund intends to distribute substantially all of its net investment income as dividends to its shareholders on at least an annual basis. The Fund intends to distribute its net realized long-term capital gains and its net realized short-term capital gains at least once a year. Distributions to shareholders, which are determined in accordance with income tax regulations, are recorded on the ex-dividend date. NOTE 3. FEES AND OTHER TRANSACTIONS WITH AFFILIATES The investment advisor to the Fund is Dobson Capital Management, Inc. Under the terms of the management agreement, (the "Agreement"), the Advisor manages the Fund's investments subject to approval of the Board. 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 0.80% of the average daily net assets of the Fund, less the amount by which total operating expenses, including management fees, exceed 1.50% of the average value of its daily net assets. The Advisor has contractually agreed to reimburse the Fund for the operating expenses it incurs, but only to the extent necessary to maintain the Fund's total annual operating expenses (excluding brokerage costs, borrowing costs, taxes and extraordinary expenses) at 1.50% of its average daily net assets. For the six months ended January 31, 2005, the Advisor earned fees of $0 from the Fund. For the six months ended January 31, 2005, the Advisor also reimbursed Fund expenses of $29,853. At January 31, 2005 there was a net receivable due from the Advisor in the amount of $33,959. 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 services, including all regulatory reporting and necessary office equipment and personnel. Unified receives a monthly fee from the Fund equal to an annual rate of 0.10% of the Fund's assets under $50 million, 0.07% of the Fund's assets from $50 million to $100 million, 0.05% of the Fund's assets from $100 million to $150 million, and 0.03% of the Fund's assets over $150 million (subject to a minimum fee of $2,500 per month). For the six months ended January 31, 2005, the administrator earned fees of $13,165 from the Fund for administrative services provided. A Trustee and the officers of the Trust are members of management and/or employees of Unified, and/or officers or shareholders of Unified Financial Services, Inc., the parent company of Unified. The Fund also retains Unified to act as the Fund's transfer agent and fund accountant. For its services as transfer agent, Unified receives a monthly fee from the Fund of $1.25 per shareholder (subject to a minimum monthly fee of $1,250) and reimbursement of out-of-pocket expenses. For the six months ended January 31, 2005, Unified earned fees of $8,672 from the Fund for transfer agent services provided and $1,579 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 the 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, 0.03% from $100 million to $150 million, and 0.02% of the Fund's assets over $150 million (subject to various monthly minimum fees, the maximum being $1,666). For the six months ended January 31, 2005, Unified earned fees of $11,579 from the Fund for fund accounting services provided to the Fund. The Fund retains Unified Financial Securities, Inc. (the "Distributor) to act as the principal distributor of its shares. The Fund has adopted a plan, pursuant to Rule 12b-1 under the Investment Company Act of 1940, which permits the Fund to pay directly, or reimburse the Fund's Advisor and Distributor, for certain distribution and promotion expenses related to marketing its shares, in an amount not to exceed 0.25% of the average daily net assets of the Fund. The plan is currently inactive, therefore, no 12b-1 fees were accrued or paid during the six months ended January 31, 2005. A Trustee of the Trust is a shareholder of Unified Financial Services, 20 DOBSON COVERED CALL FUND NOTES TO THE FINANCIAL STATEMENTS JANUARY 31, 2005 - CONTINUED (UNAUDITED) NOTE 3. FEES AND OTHER TRANSACTIONS WITH AFFILIATES - CONTINUED Inc. (the parent company of the Distributor), and certain officers of the Trust are a director and/or officers of the Distributor and/or shareholders of Unified Financial Securities, Inc. As a result, those persons may be deemed to be affiliates of the Distributor. NOTE 4. INVESTMENTS For the six months ended January 31, 2005, purchases and sales of investment securities, other than short-term investments and short-term U.S. government obligations were as follows: AMOUNT --------------- PURCHASES U.S. Government Obligations $ - Other 246,613 SALES U.S. Government Obligations $ - Other 151,470 At January 31, 2005, the net appreciation of investments for tax purposes, net of proceeds received for call options written, was as follows: AMOUNT -------------- Gross Appreciation $ 963,767 Gross (Depreciation) (695,210) -------------- Net Appreciation on Investments $ 268,557 ============== At January 31, 2005, the aggregate cost of securities for federal income tax purposes, net of proceeds received for call options written, was $6,238,725. NOTE 5. ESTIMATES The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of increases and decreases in net assets from operations during the reporting period. Actual results could differ from those estimates. NOTE 6. BENEFICIAL OWNERSHIP 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 January 31, 2005, Pershing, LLC, for the benefit of others, owned 68.86% of the Fund and thus may be deemed to control the Fund. NOTE 7. CALL OPTIONS WRITTEN As of January 31, 2005, portfolio securities valued at $6,068,791 were held in escrow by the custodian as collateral for call options written by the Fund. Transactions in written options during the six months ended January 31, 2005 were as follows (100 shares of common stock underly each option contract): 21 DOBSON COVERED CALL FUND NOTES TO THE FINANCIAL STATEMENTS JANUARY 31, 2005 - CONTINUED (UNAUDITED) NOTE 7. CALL OPTIONS WRITTEN - CONTINUED NUMBER OF PREMIUMS CONTRACTS RECEIVED Options outstanding at July 31, 2004 1,423 $ 254,178 Options written 1,891 268,016 Options terminated in closing purchase transactions (883) (138,587) Options expired (936) (161,092) Options exercised (56) (9,431) ------------- ---------------- Options outstanding at January 31, 2005 1,439 $ 213,084 ============= ================
NOTE 8. CAPITAL LOSS CARRYFORWARD At July 31, 2004, the Fund had available for federal tax purposes unused capital loss carryforwards of $108,527 expiring in 2012. Capital loss carryforwards are available to offset future realized capital gains. To the extent that these carryforwards are used to offset future capital gains, it is probable that the amount offset will not be distributed to shareholders. NOTE 9. DISTRIBUTIONS TO SHAREHOLDERS There were no distributions paid during the fiscal year ended July 31, 2004. The tax character of distributions paid during the fiscal years 2004 and 2003 were as follows: Distributions paid from: 2004 2003 ------------- ------------ Ordinary Income $ - $ 3,978 Short-Term Capital Gain - 93,218 Long-Term Capital Gain - - ------------- ------------ $ - $ 97,196 ============= ============ On December 29, 2004, the Fund paid an income distribution of $0.0353 per share or $30,173 to shareholders of record on December 28, 2004 As of July 31, 2004, the components of distributable earnings (accumulated losses) on a tax basis were as follows: Undistributed ordinary income/(accumulated losses) $ 19,675 Undistributed long-term capital gain/(accumulated losses) (108,074) Unrealized appreciation/(depreciation) (18,478) --------------- $ (106,877) =============== The difference between book basis and tax basis unrealized appreciation (depreciation) is attributable primarily to the tax deferral of losses on wash sales. 22 The Funds Statement of Additional Information ("SAI") includes additional information about the trustees and is available, without charge, upon request. You may call toll-free (877) 236-2766 to request a copy of the SAI or to make shareholder inquiries. PROXY VOTING A description of the policies and procedures that the Fund uses to determine how to vote proxies relating to portfolio securities and information regarding how the Fund voted proxies during the 12-month period ended June 30, 2004, are available without charge upon request by (1) calling the Fund at (877) 236-2766 and (2) from Fund documents filed with the Securities and Exchange Commission ("SEC") on the SEC's website at www.sec.gov. ----------- TRUSTEES Gary E. Hippenstiel Stephen A. Little Daniel J. Condon Ronald C. Tritschler OFFICERS Anthony J. Ghoston, President Thomas G. Napurano, Chief Financial Officer and Treasurer Freddie Jacobs, Jr., Secretary Lynn E. Wood, Chief Compliance Officer INVESTMENT ADVISOR Dobson Capital Management, Inc. 1422 S. Van Ness Street Santa Ana, CA 92707 DISTRIBUTOR Unified Financial Securities, Inc. 431 N. Pennsylvania Street Indianapolis, IN 46204 INDEPENDENT ACCOUNTANTS Cohen McCurdy Ltd. 826 Westpoint Pkwy, Suite 1250 Westlake, OH 44145 LEGAL COUNSEL Thompson Hine LLP 312 Walnut St., 14th Floor Cincinnati, OH 45202 CUSTODIAN UMB Bank, N.A. 928 Grand Blvd, 10th Floor Kansas City, MO 64106 ADMINISTRATOR, TRANSFER AGENT AND FUND ACCOUNTANT Unified Fund Services, Inc. 431 N. Pennsylvania Street Indianapolis, IN 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 23 ITEM 2. CODE OF ETHICS. NOT APPLICABLE ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT. NOT APPLICABLE ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES. NOT APPLICABLE ITEM 5. AUDIT COMMITTEE OF LISTED COMPANIES. NOT APPLICABLE ITEM 6. SCHEDULE OF INVESTMENTS. NOT APPLICABLE - SCHEDULE FILED WITH ITEM 1. 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. THE REGISTRANT HAS NOT ADOPTED PROCEDURES BY WHICH SHAREHOLDERS MAY RECOMMEND NOMINEES TO THE REGISTRANT'S BOARD OF TRUSTEES [DIRECTORS]. ITEM 10. CONTROLS AND PROCEDURES. (a) Based on an evaluation of the registrant's disclosure controls and procedures as of March 24, 2005, 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) NOT APPLICABLE (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-2under the Investment Company Act of 1940 are filed herewith. (a)(3) Not Applicable (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. -2- 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/ Anthony Ghoston ----------------------------------------------------- Anthony Ghoston, President Date 4/7/05 -------------------------------------------------- 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/ Anthony Ghoston ------------------------------------------------------ Anthony Ghoston, President Date 4/7/05 --------------------------------------------------- By * /s/ Thomas Napurano ---------------------------------------------------------------- Thomas Napurano, Chief Financial Officer and Treasurer Date 3/30/05 -------------------------------------------------------------- EX-99.906 2 ex906cert.txt EX-99.906CERT CERTIFICATION Anthony Ghoston, 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 January 31, 2005 (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/ Anthony Ghoston /s/ Thomas Napurano - -------------------------------- -------------------------------------- Anthony Ghoston Thomas Napurano Date: 4/7/05 Date: 3/30/05 -------------------------- -------------------------------------- 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-99.CERT 3 ex99.txt Exhibit 99.CERT CERTIFICATIONS I, Anthony Ghoston, 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) 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) 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 c) 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: 4/7/05 ------------------------------- /s/ Anthony Ghoston ----------------------------------- Anthony Ghoston, 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) 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) 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 c) 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: 3/30/05 ------------------------ /s/ Thomas Napurano -------------------------------------- Thomas Napurano, Chief Financial Officer and Treasurer -----END PRIVACY-ENHANCED MESSAGE-----