-----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, GsgOFZ58MmPHi76XxaTJrmzNSn2N0/KK4OFNgng7VMxNdOxLw3cQwQDDOHaJXrGA idbqIfAV4Bmuo9rOeqwzjg== 0001035449-03-000413.txt : 20031031 0001035449-03-000413.hdr.sgml : 20031031 20031031161921 ACCESSION NUMBER: 0001035449-03-000413 CONFORMED SUBMISSION TYPE: N-CSR PUBLIC DOCUMENT COUNT: 4 CONFORMED PERIOD OF REPORT: 20030831 FILED AS OF DATE: 20031031 EFFECTIVENESS DATE: 20031031 FILER: COMPANY DATA: COMPANY CONFORMED NAME: AMERIPRIME ADVISORS TRUST CENTRAL INDEX KEY: 0001092949 STATE OF INCORPORATION: OH FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: N-CSR SEC ACT: 1940 Act SEC FILE NUMBER: 811-09541 FILM NUMBER: 03970162 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-CSR 1 advann0803.txt AMERIPRIME ADVISORS TRUST 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 811-09541 Ameriprime Advisors Trust (Exact name of registrant as specified in charter) 431 North Pennsylvania Street, Indianapolis, IN 46204 (Address of principal executive offices) (Zip code) Timothy Ashburn, Unified Fund Services, Inc., 431 North Pennsylvania Street 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: 08/31 Date of reporting period: 08/31/03 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. =============================================================================== Monteagle Funds =============================================================================== Annual Report August 31, 2003 Fund Advisor: Nashville Capital Corporation 209 10th Avenue South Suite 332 Nashville, TN 37203 Toll Free: (877) 272-9746 Monteagle Fixed Income Fund Returns for the Periods Ended August 31, 2003 Average Annual 1 Year 3 Year Total Return Average Annual Average Annual Since Inception Total Return Total Return (December 20, 1999) ------------------------------------------------ Monteagle Fixed Income Fund 3.06% 8.03% 7.77% Lehman Interm. Govt. Credit Bond Index 5.25% 8.39% 8.14%
Growth of a $10,000 Investment Monteagle Fixed Income Fund Lehman Interm Govt Credit Bond Index 12/20/99 10,000.00 10,000.00 2/29/00 10,004.40 10,014.57 8/31/00 10,464.12 10,490.98 2/28/01 11,424.56 11,263.39 8/31/01 11,851.70 11,780.43 2/28/02 12,206.75 12,120.37 8/31/02 12,799.95 12,692.09 2/28/03 13,250.15 13,322.44 8/31/03 13,191.42 13,358.33
This chart shows the value of a hypothetical initial investment of $10,000 in the Fund and the Lehman Brothers Intermediate Gov. Credit Bond Index on December 20, 1999 (commencement of operations) and held through August 31, 2003. The Lehman Brothers Intermediate Gov./Credit Bond Index is a widely recognized unmanaged index of bond prices and is representative of a broader market and range of securities than is found in the Monteagle Fixed Income Fund portfolio. Individuals cannot invest directly in an index. Performance figures reflect the change in value of the bonds in the Index, and are not annualized. The Index returns do not reflect expenses, which have been deducted from the Fund's return. THE FUND'S RETURN REPRESENTS PAST PERFORMANCE AND DOES NOT GUARANTEE FUTURE RESULTS. Investment returns and principal value will fluctuate so that your shares, when redeemed, may be worth more or less than their original purchase price. For more information on the Monteagle Fixed Income Fund, please call 1-800-459-9084 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. Management Discussion The fund seeks to realize its investment objectives by investing at least 80% of its assets in fixed income securities, including the following: o U. S. Government Obligations o Government Sponsored Enterprises (Agencies) Obligations o Taxable Municipal bonds o Corporate Debt instruments The fund's performance is affected by various elements of risk, including: Interest Rates: In general, shorter term interest rates (two years and less) were lower, and longer term interest rates (five years and greater) were higher at the end of the fund's fiscal year than they were at the beginning. However, for most of the year, interest rates were at historic lows. Most of the price appreciation and positive returns for the year were generated in the first three quarters. Duration/Average Maturity of Assets: Over the last year, fixed income securities having longer maturities outperformed those of shorter duration. The fund's overall average maturity remained fairly constant throughout the year at 4.1 years. The fund's performance was negatively impacted by keeping its duration shorter than past years. Given the relatively low absolute levels of interest rates, we continue to be cautious in our expectations of price appreciation in the fixed income markets. Credit Risk: The overall credit quality of the Fund's assets is AA-, the fourth highest rating of ten levels that comprise the Investment Grade Market. The fund's performance was positively affected by an increased allocation in Corporate bonds versus U.S. Treasury notes and Agency bonds. This sector performed well based on expectations of economic recovery and increased demand for current higher yielding assets. Sincerely, HOWE AND RUSLING, INC. Monteagle Opportunity Growth Fund Returns for the Periods Ended August 31, 2003 Average Annual 1 Year 3 Year Total Return Average Annual Average Annual Since Inception Total Return Total Return (December 20, 1999) ---------------------------------------------------------------------------- Monteagle Opportunity Growth Fund 4.17% -21.74% -15.45% S & P 500 Index 12.06% -11.43% -8.39%
Growth of a $10,000 Investment Monteagle Opportunity Growth Fund S & P 500 12/20/99 10,000.00 10,000.00 2/29/00 17,100.00 9,318.02 8/31/00 11,210.00 10,410.25 2/28/01 6,190.78 8,554.43 8/31/01 5,732.20 7,872.44 2/28/02 5,732.20 7,741.15 8/31/02 5,158.98 6,454.65 2/28/03 4,514.11 5,984.25 8/31/03 5,373.94 7,232.91
This chart shows the value of a hypothetical initial investment of $10,000 in the Fund and the S&P 500 Index on December 20, 1999 (commencement of operations) and held through August 31, 2003. The S&P 500 Index is a widely recognized unmanaged index of common stock prices and is representative of a broader market and range of securities than is found in the Monteagle Opportunity Growth Fund portfolio. Individuals cannot invest directly in an index. The graph and performance table do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. Performance figures reflect the change in value of the stocks in the Index plus reinvestment of dividends and are not annualized. The Index returns do not reflect expenses, which have been deducted from the Fund's return. THE FUND'S RETURN REPRESENTS PAST PERFORMANCE AND DOES NOT GUARANTEE FUTURE RESULTS. Investment returns and principal value will fluctuate so that your shares, when redeemed, may be worth more or less than their original purchase price. For more information on the Monteagle Opportunity Growth Fund, please call 1-800-459-9084 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. Management Discussion The U.S. markets edged higher during the past quarter, spurred by rising corporate profits, growth in capital spending, continued consumer spending and a red-hot housing market. The quarter marked the first back-to-back quarterly gains since 2000. Stocks have gained considerable momentum during the past six months - after a brief war-related pause in the first quarter - putting all major stock indices on track for their first winning year since 1999. OUTLOOK FOR THE US STOCK MARKET The US economy shows unmistakable signs of moving from recovery to expansion during this second half of 2003. It is expected to grow at its strongest pace in almost four years. Despite continued job losses in the manufacturing sector, August marked the fourth straight month in which new orders and production numbers grew. Consensus estimates now predict S&P 500 Index earnings will climb 14.9% for the September quarter, and 21.5% for the December quarter. Fiscal policy is very stimulative as defense spending soars, tax rebates arrive and withholding tax rebates decline. Monetary policy remains extraordinarily accommodative. The lowest interest rates in 45 years, the third largest tax cut in US history, $6.4 trillion in cash on the side lines and more than $1 trillion of new M-3 money should accelerate economic growth in future months and push stock prices to still higher levels. Respectfully submitted, T. H. Fitzgerald, Jr. President T.H. Fitzgerald & Co. Monteagle Value Fund Returns for the Periods Ended August 31, 2003 Average Annual 1 Year 3 Year Total Return Average Annual Average Annual Since Inception Total Return Total Return (December 20, 1999) --------------------------------------------------------------------------- Monteagle Value Fund 13.49% 3.48% 7.17% Russell 2000 Value Index 23.68% 11.28% 14.51%
Growth of a $10,000 Investment Monteagle Value Fund Russell 2000 Value Index 12/20/99 10,000.00 10,000.00 2/29/00 9,240.00 10,832.56 8/31/00 11,660.00 11,978.01 2/28/01 12,762.14 13,212.61 8/31/01 13,707.48 14,138.94 2/28/02 13,843.26 14,966.57 8/31/02 11,384.57 13,347.24 2/28/03 10,092.48 12,212.82 8/31/03 12,920.27 16,507.56
This chart shows the value of a hypothetical initial investment of $10,000 in the Fund and the Russell 2000 Value Index on December 20, 1999 (commencement of operations) and held through August 31, 2003. The Russell 2000 Value Index is a widely recognized unmanaged index of common stock prices and is representative of a broader market and range of securities than is found in the Monteagle Value Fund portfolio. Individuals cannot invest directly in an index. The graph and performance table do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. Performance figures reflect the change in value of the stocks in the Index plus reinvestment of dividends and are not annualized. The Index returns do not reflect expenses, which have been deducted from the Fund's return. THE FUND'S RETURN REPRESENTS PAST PERFORMANCE AND DOES NOT GUARANTEE FUTURE RESULTS. Investment returns and principal value will fluctuate so that your shares, when redeemed, may be worth more or less than their original purchase price. For more information on the Monteagle Value Fund, please call 1-800-459-9084 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. Management Discussion The investment climate for the Monteagle Value Fund for the year ended August 31, 2003 changed dramatically during the past twelve months. The continued record low interest rates and the prospects for sustained economic recovery greeted investors with a significant rally in stock prices since March 11, 2003. Additionally, the European and Far Eastern economies appear to be entering economic recovery as well. With fifty year lows achieved in the U.S. Treasury Bill rates in the second quarter, the foundation has been laid by policy makers for substantial capital formation for the coming months. However, the U.S. bond market rally came to an abrupt halt in the second quarter with investors choosing alternative investments for income, like higher paying dividend stocks. The accommodative Fed policy now and in the past twelve months has calmed the equity markets during the past twelve months as most major indices moved into positive returns reversing the three year decline in stock prices. Over the past six months, since March, the equity market has experienced positive price changes in almost all industrial sectors, especially the economically sensitive industries. Market weakness has been confined to defensive industry groups including pharmaceuticals, electric utility companies, commercial banks, and packaged food companies. Additionally, small and mid-capitalization issues have outperformed large capitalization companies. The prospects for market sustainability remain high as economic recovery continues to accelerate. The passing of the Tax Reduction Bill this spring has reduced taxes for most in the United States which will put real money into the economy. The Federal Reserve policy remains accommodative and is now favoring inflation for the first time under the watchful eye of Alan Greenspan. Already in the past twelve months, most major commodities have experienced double digit percentage increases in price. The Monteagle Value Fund investment objectives remain to offer investors a lower risk portfolio of stocks to produce long-term capital growth. Sincerely, Russell L. Robinson President Robinson Investment Group Monteagle Large Cap Equity Fund Returns for the Periods Ended August 31, 2003 Average Annual 1 Year 3 Year Total Return Average Annual Average Annual Since Inception Total Return Total Return (January 18, 2000) ---------------------------------------------------------------------------- Monteagle Large Cap Fund 8.01% -20.46% -17.46% S & P 500 Index 12.06% -11.42% -8.32%
Growth of a $10,000 Investment Monteagle Large Cap Fund S & P 500 1/18/00 10,000.00 10,000.00 2/29/00 9,430.00 9,404.18 8/31/00 9,920.00 10,506.51 2/28/01 7,562.49 8,633.52 8/31/01 6,702.20 7,945.23 2/28/02 6,041.99 7,816.20 8/31/02 4,621.52 6,517.24 2/28/03 4,221.39 6,042.27 8/31/03 4,991.64 7,303.04
This chart shows the value of a hypothetical initial investment of $10,000 in the Fund and the S&P 500 Index on January 18, 2000 (commencement of operations) and held through August 31, 2003. The S&P 500 Index is a widely recognized unmanaged index of common stock prices and is representative of a broader market and range of securities than is found in the Monteagle Large Cap Fund portfolio. Individuals cannot invest directly in an index. The graph and performance table do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares Performance figures reflect the change in value of the stocks in the Index plus reinvestment of dividends and are not annualized. The Index returns do not reflect expenses, which have been deducted from the Fund's return. THE FUND'S RETURN REPRESENTS PAST PERFORMANCE AND DOES NOT GUARANTEE FUTURE RESULTS. Investment returns and principal value will fluctuate so that your shares, when redeemed, may be worth more or less than their original purchase price. For more information on the Monteagle Large Cap Fund, please call 1-800-459-9084 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. Management Discussion The fund seeks to realize its investment objectives by investing in common stocks, at least 80% of which have a market capitalization of at least $15 billion. The fund's performance is affected by conditions in the U. S. stock market and the economies of the U.S. and the western world. The year ending August 31 witnessed abnormally high volatility in U.S. stock prices, but these 12 months ended on a positive note. Large cap stocks had just begun to outperform the S&P 500 stock index. This fund was no exception. In the last 6 months of the fund's fiscal year, a disproportionate part of the progress was contributed by the industrial and consumer cyclical stocks in the portfolio. It was fortunate that we had overweighted these sectors. This good relative performance is logical, as the stock market began to discount the coming strength in economic activity. The more conservative parts of the portfolio, such as healthcare and consumer products, produced only a modest gain. There was a marked rotation of investor enthusiasm into the more economically sensitive groups. Sincerely, HOWE AND RUSLING, INC. Monteagle Fixed Income Fund Schedule of Investments August 31, 2003 Principal Amount Value Corporate Bonds - 56.24% Abbott Laboratories Corp. Notes, 6.400%, 12/1/2006 1,500,000 $ 1,659,313 American Express Co. Notes, 3.750%, 11/20/2007 300,000 300,193 American General Finance Medium Term Notes, 5.875%, 7/14/2006 1,000,000 1,081,635 Ameritech Capital Funding Corp. Guaranteed Notes, 6.150%, 1/15/2008 1,000,000 1,091,918 Bank of America Senior Notes, 4.875%, 1/15/2013 500,000 489,705 Bank of New York Medium Term Notes, 3.900%, 9/1/2007 500,000 506,346 Bear Stearns Co. Global Notes, 4.000%, 1/31/2008 525,000 526,390 BellSouth Capital Funding Debentures, 6.040%, 11/15/2026 500,000 544,375 Bristol Myers Squibb Notes, 5.750%, 10/1/2011 500,000 524,473 CBS Corp. Senior Notes, 7.150%, 5/20/2005 1,000,000 1,084,002 Commercial Credit Co. Notes, 10.000%, 12/1/2008 1,000,000 1,266,153 Dayton Hudson Corp. Notes, 5.875%, 11/1/2008 1,000,000 1,082,197 General Motors Acceptance Corp., 7.100%, 3/15/2006 500,000 529,516 International Business Machines Notes, 5.375%, 2/1/2009 1,000,000 1,061,771 McDonnell Douglas Co. Notes, 6.875%, 11/1/2006 1,000,000 1,084,546 Merrill Lynch & Co., Inc. Notes, 8.000%, 6/1/2007 500,000 564,915 Morgan Stanley Dean Witter Notes, 4.250%, 5/15/2010 1,000,000 972,374 Nabisco, Inc. Notes, 7.050%, 7/15/2007 1,000,000 1,100,512 Pitney Bowes Credit Corp. Notes, 8.625%, 2/15/2008 700,000 838,111 United Technologies Notes, 4.875%, 11/1/2006 300,000 316,609 ----------------- TOTAL CORPORATE BONDS (Cost $15,883,302) 16,625,054 ----------------- Municipal Obligations - 24.83% Atlanta & Fulton County, Georgia Recreation Authority Downtown Arena Project, 6.625%, 12/1/2011 300,000 326,028 Buffalo, New York Pension System 8.500%, 8/15/2005 500,000 556,660 Denver, Colorado City & County School District, 6.760%, 12/15/2007 1,000,000 1,118,780 LaGrange, Georgia Development Authority Communications System Project 6.100%, 2/1/2010 750,000 805,732 Manchester, New Hampshire Airport Revenue Bonds 7.350%, 1/1/2004 350,000 356,367 Morristown, Tennessee 6.000%, 3/1/2007 410,000 410,000 New Jersey Sports & Expos 7.375%, 3/1/2007 500,000 562,635 New York State Environmental Facilities Corp. 6.660%, 3/15/2007 950,000 1,044,563 Orleans Parish, Louisiana School Board Revenue Bonds 6.600%, 2/1/2008 1,000,000 1,099,000 Texas Tech University Revenue Bonds, 5.320%, 8/15/2007 1,000,000 1,061,610 ----------------- TOTAL MUNICIPAL OBLIGATIONS (Cost $6,845,793) 7,341,375 ----------------- U.S. Treasury and Agency Obligations - 17.22% Federal Home Loan Bank, 5.375%, 5/15/2009 500,000 529,610 Federal Home Loan Bank, 3.600%, 3/11/2008 200,000 198,706 Federal National Mortgage Association, 4.750%, 3/15/2004 1,000,000 1,019,066 Federal National Mortgage Association, 6.375%, 6/15/2009 1,500,000 1,672,501 US Treasury Notes, 5.625%, 5/15/2008 1,275,000 1,401,256
See accompanying notes which are an integral part of the financial statements. Monteagle Fixed Income Fund Schedule of Investments - continued August 31, 2003 U.S. Treasury and Agency Obligations - 17.22% - continued Principal Amount Value US Treasury Notes, 7.250%, 5/15/2004 100,000 $ 104,258 US Treasury Notes, 5.500%, 5/15/2009 150,000 164,525 ----------------- TOTAL U.S. TREASURY & AGENCY OBLIGATIONS (Cost $4,780,329) 5,089,922 ----------------- Money Market Securities - 0.72% Huntington Money Market Fund Investment Shares, 0.250% (a) (Cost $212,851) 212,851 212,851 ----------------- TOTAL INVESTMENTS - 99.01% (Cost $27,722,275) $ 29,269,202 ----------------- Other assets less liabilities - 0.99% 292,923 ----------------- TOTAL NET ASSETS - 100.00% $ 29,562,125 =================
(a) Variable rate security; the coupon rate shown represents the rate at August 31, 2003. See accompanying notes which are an integral part of the financial statements. Monteagle Opportunity Growth Fund Schedule of Investments August 31, 2003 Common Stocks - 99.42% Shares Value Biological Products (No Diagnostic Substances) - 2.35% Invitrogen Corp. (a) 8,700 $ 503,469 ----------------- Computer Storage Devices - 2.08% SanDisk Corp. (a) 7,400 447,330 ----------------- Crude Petroleum & Natural Gas - 0.47% Anadarko Petroleum Corp. 2,300 100,050 ----------------- Finance Services - 6.55% Life Partners Holdings, Inc. 260,500 1,406,700 ----------------- General Building Contractors - Residential Buildings - 0.94% Lennar Corp. - Class A 3,000 201,750 ----------------- Insurance Agents, Brokers & Service - 4.64% AdvancePCS, Inc. (a) 24,900 996,747 ----------------- Leather & Leather Products - 2.98% Coach, Inc. (a) 11,000 638,440 ----------------- Miscellaneous Manufacturing Industries - 1.60% International Game Technology 13,300 343,672 ----------------- Mobile Homes - 0.05% Cavco Industries, Inc. (a) 605 11,532 ----------------- Motor Vehicles & Passenger Car Bodies - 4.46% PACCAR, Inc. 11,200 956,144 ----------------- Operative Builders - 11.85% Centex Corp. 5,500 414,810 D.R. Horton, Inc. 13,800 429,456 Hovnanian Enterprises, Inc. - Class A (a) 6,900 425,523 NVR, Inc. (a) 500 216,750 Pulte Homes Corp. 3,100 206,336 Ryland Group, Inc. 9,600 644,736 Toll Brothers, Inc. (a) 6,900 205,068 ----------------- 2,542,679 ----------------- Pharmaceutical Preparations - 9.58% American Pharmaceutical Partners, Inc. (a) 27,700 1,320,459 Pharmaceutical Resources, Inc. (a) 5,400 302,076 TEVA Pharmaceutical Industries, Ltd. (c) 7,400 433,344 ----------------- 2,055,879 -----------------
See accompanying notes which are an integral part of the financial statements. Monteagle Opportunity Growth Fund Schedule of Investments - continued August 31, 2003 Common Stocks - 99.42% - continued Shares Value Photographic Equipment & Supplies - 4.29% Avid Technology, Inc. (a) 18,500 $ 919,450 ----------------- Radiotelephone Communications - 2.12% NEXTEL Communications, Inc. - Class A (a) 23,500 454,255 ----------------- Retail - Catalog & Mail - Order Houses - 5.27% Amazon.com, Inc. (a) 24,400 1,130,208 ----------------- Semiconductors & Related Devices - 3.03% Omnivision Technologies, Inc. (a) 14,700 650,622 ----------------- Services - Business Services - 13.00% eBAY, Inc. (a) 16,000 886,560 Netease.com, Inc. (a) (c) 19,300 984,300 NetScreen Technologies, Inc. (a) 10,700 256,479 Overture Services, Inc. (a) 26,600 663,138 ----------------- 2,790,477 ----------------- Services - Commercial Physical & Biological Research - 4.69% Gen Probe, Inc. (a) 15,900 1,007,106 ----------------- Services - Computer Integrated Systems Design - 4.73% Yahoo, Inc. (a) 30,400 1,015,056 ----------------- Services - Computer Programming, Data Processing, Etc. - 2.91% United Online, Inc. (a) 16,500 624,855 ----------------- Services - Educational Services - 5.20% Career Education Corp. (a) 19,500 878,280 University of Phoenix Online (a) 3,500 237,335 ----------------- 1,115,615 ----------------- Services - Nursing & Personal Care Facilities - 2.05% Odyssey Healthcare, Inc. (a) 14,400 440,496 ----------------- Services - Prepackaged Software - 3.32% Sina Corp. (a) 23,000 713,460 ----------------- Surgical & Medical Instruments & Apparatus - 1.26% Guidant Corp. 5,400 271,080 ----------------- Transportation Services - 0.00% InteractiveCorp (a) 20 740 -----------------
See accompanying notes which are an integral part of the financial statements. Monteagle Opportunity Growth Fund Schedule of Investments - continued August 31, 2003 Common Stocks - 99.42% - continued Shares Value TOTAL COMMON STOCKS (Cost $18,785,587) $ 21,337,812 ----------------- Money Market Securities - 6.32% Huntington Money Market Fund Investment Shares, 0.25%, (Cost $1,357,230) (b) 1,357,230 1,357,230 ----------------- TOTAL INVESTMENTS (Cost $20,142,817) - 105.74% $ 22,695,042 ----------------- Liabilities in excess of other assets - (5.74%) (1,232,097) ----------------- TOTAL NET ASSETS - 100.00% $ 21,462,945 =================
(a) Non-income producing. (b) Variable rate security; the coupon rate shown represents the rate at August 31, 2003. (c) American Depositary Receipts. See accompanying notes which are an integral part of the financial statements. Monteagle Value Fund Schedule of Investments August 31, 2003 Common Stocks - 98.52% Shares Value Aircraft & Parts - 4.64% Textron, Inc. 15,100 $ 679,500 ----------------- Computer Communication Equipment - 3.43% Adaptec, Inc. (a) 68,700 502,197 ----------------- Drilling Oil & Gas Wells - 3.84% Rowan Co., Inc. (a) 22,450 562,148 ----------------- Electric Lighting & Wiring Equipment - 7.97% Cooper Industries, Inc. 11,800 600,502 Hubbell, Inc. - Class B 14,200 567,432 ----------------- 1,167,934 ----------------- Electric Services - 6.99% Duke Energy Inc. 33,550 573,034 TECO Energy, Inc. 38,200 451,906 ----------------- 1,024,940 ----------------- Electronic Components & Accessories - 4.61% Vishay Intertechnology, Inc. (a) 41,000 675,270 ----------------- Guided Missiles & Space Vehicles & Parts - 5.56% Goodrich Corp. 31,300 814,739 ----------------- Paper Mills - 3.42% Meadwestvaco Corp. 19,795 501,803 ----------------- Paperboard Containers & Boxes - 2.25% Sonoco Products Co. 14,500 330,165 ----------------- Petroleum Refining - 3.81% ConocoPhillips Co. 10,000 558,400 ----------------- Pharmaceutical Preparations - 3.71% Schering-Plough Corp. 35,750 543,043 ----------------- Photographic Equipment & Supplies - 2.78% Eastman Kodak, Inc. 14,600 407,194 ----------------- Plastic Mail, Synth Resin/Rubber, Cellulose (No Glass) - 3.89% DuPont (EI) de NeMours & Co. 12,750 570,435 ----------------- Railroad Equipment - 4.89% Trinity Industries, Inc. 27,200 715,904 -----------------
See accompanying notes which are an integral part of the financial statements. Monteagle Value Fund Schedule of Investments - continued August 31, 2003 Common Stocks - 98.52% - continued Shares Value Real Estate Investment Trusts - 3.52% New Plan Excel Realty Trust, Inc. 22,550 $ 515,493 ----------------- Retail - Department Stores - 1.69% The May Department Stores Co. 9,000 248,220 ----------------- Retail - Grocery Stores - 3.38% Albertson's, Inc. 23,550 495,021 ----------------- Semiconductors & Related Devices - 3.13% Atmel Corp. (a) 100,000 458,000 ----------------- Services - Auto Rental & Leasing (No Drivers) - 4.47% Ryder System, Inc. 21,800 654,654 ----------------- Services - Computer Integrated Systems Design - 5.03% Unisys Corp. (a) 56,800 737,264 ----------------- Steel Works, Blast Furnaces & Rolling & Finishing Mills - 3.71% Worthington Industries, Inc. 36,000 543,600 ----------------- Telephone & Telegraph Apparatus - 3.92% ADC Telecommunications, Inc. (a) 125,000 315,000 Tellabs, Inc. (a) 40,000 259,600 ----------------- 574,600 ----------------- Water Transportation - 3.33% Tidewater, Inc. 17,000 488,240 ----------------- Wholesale - Groceries & Related Products - 4.55% Supervalu, Inc. 27,650 666,365 ----------------- TOTAL COMMON STOCKS (Cost $14,632,373) 14,435,129 ----------------- Money Market Securities - 1.32% Huntington Money Market Fund, 0.25%, (Cost $193,460) (b) 193,460 193,460 ----------------- TOTAL INVESTMENTS (Cost $14,825,833) - 99.84% $ 14,628,589 ----------------- Other assets less liabilities - 0.16% 23,192 ----------------- TOTAL NET ASSETS - 100.00% $ 14,651,781 =================
(a) Non-income producing. (b) Variable rate security; the coupon rate shown represents the rate at August 31, 2003. See accompanying notes which are an integral part of the financial statements. Monteagle Large Cap Fund Schedule of Investments August 31, 2003 Common Stocks - 99.78% Shares Value Cable & Other Pay Television Services - 4.99% Viacom, Inc. - Class B 4,500 $ 202,500 ----------------- Computers & Office Equipment - 4.44% International Business Machines Corp. 2,200 180,422 ----------------- Construction Machinery & Equipment - 6.37% Caterpillar, Inc. 3,600 258,588 ----------------- Electronic & Other Electrical Equipment (No Computer Equipment) - 4.73% General Electric Co. 6,500 192,205 ----------------- Electronic Connectors - 5.34% Tyco International Ltd. 10,540 216,913 ----------------- Insurance Agents Brokers & Services - 6.16% Marsh & McLennan Companies, Inc. 5,000 250,000 ----------------- Malt Beverages - 4.57% Anheuser-Busch Co. 3,600 185,544 ----------------- National Commercial Banks - 5.34% Citigroup, Inc. 5,000 216,750 ----------------- Oil & Gas - 4.97% Royal Dutch Petroleum Co. (c) 4,500 201,915 ----------------- Pharmaceutical Preparations - 8.23% Johnson & Johnson 3,000 148,740 Pfizer, Inc. 6,200 185,504 ----------------- 334,244 ----------------- Plastic Mail, Synth Resin/Rubber, Cellulos (No Glass) - 4.85% DuPont (EI) de NeMours & Co. 4,400 196,856 ----------------- Retail - Catalog & Mail - Order Houses - 4.89% CDW Corp. (a) 3,850 198,698 ----------------- Retail - Lumber & Other Building Materials Dealers - 5.54% Home Depot Inc. 7,000 225,120 ----------------- Retail - Variety Stores - 5.60% Target Corp. 5,600 227,360 -----------------
See accompanying notes which are an integral part of the financial statements. Monteagle Large Cap Fund Schedule of Investments - continued August 31, 2003 Common Stocks - 99.78% - continued Shares Value Savings Institutions, Not Federally Chartered - 5.95% Washington Mutual, Inc. 6,200 $ 241,676 ----------------- Services - Personal Services - 2.66% Cendant Corp. (a) 6,000 107,880 ----------------- Ship & Boat Building & Repairing - 6.36% General Dynamics Corp. 3,000 258,330 ----------------- Soap, Detergent, Cleaning Preparations, Perfumes, Cosmetics - 4.30% Procter & Gamble Inc. 2,000 174,580 ----------------- Wholesale - Drugs Proprietaries & Druggists' Sundries - 4.49% Cardinal Health, Inc. 3,200 182,176 ----------------- TOTAL COMMON STOCKS (Cost $4,448,710) 4,051,757 ----------------- Money Market Securities - 0.17% Huntington Money Market Fund Investment Shares, 0.25%, (Cost $6,853) (b) 6,853 6,853 ----------------- TOTAL INVESTMENTS (Cost $4,455,563) - 99.95% $ 4,058,610 ----------------- Other Assets less Liabilities - 0.05% 2,201 ----------------- TOTAL NET ASSETS - 100.00% $ 4,060,811 =================
(a) Non-income producing. (b) Variable rate security; the coupon rate shown represents the rate at August 31, 2003. (c) American Depositary Receipts. See accompanying notes which are an integral part of the financial statements. MONTEAGLE FUNDS STATEMENTS OF ASSETS AND LIABILITIES - August 31, 2003 MONTEAGLE MONTEAGLE MONTEAGLE MONTEAGLE FIXED INCOME OPPORTUNITY VALUE LARGE CAP FUND GROWTH FUND FUND FUND Assets Investments in securities, at value $ 29,269,202 $ 22,695,042 $ 14,628,589 $ 4,058,610 (cost $27,722,275, $20,142,817 $14,825,833 and $4,455,563, respectively) Interest receivable 417,389 547 97 3 Dividends receivable - 11,543 40,986 8,238 Receivable for investments sold - 257,023 - - Other receivables - 6,997 - - ------------------ ------------------ --------------- ------------------ Total assets 29,686,591 22,971,152 14,669,672 4,066,851 ------------------ ------------------ --------------- ------------------ Liabilities Payable for investments purchased - 1,482,549 - - Accrued advisory fees 29,051 23,885 16,118 4,267 Other accrued expenses 1,773 1,773 1,773 1,773 Distribution payable 93,642 - - - ------------------ ------------------ --------------- ------------------ Total liabilities 124,466 1,508,207 17,891 6,040 ------------------ ------------------ --------------- ------------------ Net Assets: Applicable to 2,697,980, 5,722,781 1,341,511and 814,163 shares outstanding, respectively $ 29,562,125 $ 21,462,945 $ 14,651,781 $ 4,060,811 ================== ================== =============== ================== Net Assets consist of: Paid in capital 27,608,897 40,567,410 16,739,393 11,101,950 Accumulated undistributed net investment income (loss) 11,337 - (14,270) 6,111 Accumulated net realized gain (loss ) on investments 394,964 (21,656,690) (1,876,098) (6,650,297) Net unrealized appreciation (depreciation) on investments 1,546,927 2,552,225 (197,244) (396,953) ------------------ ------------------ --------------- ------------------ $ 29,562,125 $ 21,462,945 $ 14,651,781 $ 4,060,811 ================== ================== =============== ================== Net asset value, offering and redemption price per share $ 10.96 $ 3.75 $ 10.92 $ 4.99 ================== ================== =============== ==================
See accompanying notes which are an integral part of the financial statements. MONTEAGLE FUNDS STATEMENTS OF OPERATIONS Year ended August 31, 2003 MONTEAGLE MONTEAGLE MONTEAGLE MONTEAGLE FIXED INCOME OPPORTUNITY VALUE LARGE CAP FUND GROWTH FUND FUND FUND Investment Income: Dividend income $ - $ 82,757 $ 481,546 $ 69,487 Interest income 1,671,871 43,828 1,154 483 ----------------- ------------------ ------------- ------------------ Total Income 1,671,871 126,585 482,700 69,970 ----------------- ------------------ ------------- ------------------ Expenses: Investment manager fee 386,866 301,450 211,678 61,997 Trustee expenses 1,773 1,773 1,773 1,773 ----------------- ------------------ ------------- ------------------ Total expenses 388,639 303,223 213,451 63,770 ---------------- ------------------ ------------- ------------------ Net Investment Income (Loss) 1,283,232 (176,638) 269,249 6,200 ----------------- ------------------ ------------- ------------------ Realized & Unrealized Gain (Loss): Net realized gain (loss) on investment securities 394,888 (3,338,927) (363,394) (1,899,662) Change in net unrealized appreciation (depreciation) on investment securities (536,724) 3,843,445 1,598,703 2,127,692 ----------------- ------------------ ------------- ------------------ Net realized and unrealized gain (loss) on investment securities (141,836) 504,518 1,235,309 228,030 ----------------- ------------------ ------------- ------------------ Net increase (decrease) in net assets from operations $ 1,141,396 $ 327,880 $ 1,504,558 $ 234,230 ================= ================== ============= ==================
See accompanying notes which are an integral part of the financial statements. MONTEAGLE FUNDS STATEMENTS OF CHANGES IN NET ASSETS MONTEAGLE MONTEAGLE FIXED INCOME OPPORTUNITY GROWTH FUND FUND ----------------------------------- ------------------------------ Year ended Year ended Year ended Year ended Increase (Decrease) in Net Assets Aug. 31, 2003 Aug.31,2002 Aug. 31, 2003 Aug.31,2002 ------------------ ------------- --------------- -------------- Operations: Net investment income (loss) $ 1,283,232 $ 1,665,038 $ (176,638) $ (210,382) Net realized gain (loss) on investment securities 394,888 727,520 (3,338,927) (1,359,663) Change in net unrealized appreciation (depreciation) (536,724) 422,929 3,843,445 (1,493,118) --------------- ------------- -------------- ------------ Net increase (decrease) in net assets resulting from operations 1,141,396 2,815,487 327,880 (3,063,163) --------------- ------------- -------------- ------------ Distributions: From net investment income (1,278,249) (1,657,250) - - From net realized gain (439,848) - - - --------------- ------------- -------------- ------------ Total distributions (1,718,097) (1,657,250) - - --------------- ------------- -------------- ------------ Capital Share Transactions: Proceeds from shares sold 553,903 986,613 1,964,972 10,204,457 Reinvestment of distributions - - - - Amount paid for shares repurchased (8,041,449) (1,024,664) (7,394,214) (12,957,079) --------------- ------------- -------------- ------------ Net increase (decrease) in net assets resulting from share transactions (7,487,546) (38,051) (5,429,242) (2,752,622) --------------- ------------- -------------- ------------ Total Increase (Decrease) in Net Assets (8,064,247) 1,120,186 (5,101,362) (5,815,785) --------------- ------------- -------------- ------------ Net Assets: Beginning of period 37,626,372 36,506,186 26,564,307 32,380,092 --------------- ------------- -------------- ------------ End of period $ 29,562,125 $37,626,372 $ 21,462,945 $26,564,307 ============== ============== ============== ============== Accumulated undistributed net investment income included in net assets at end of period $ 11,337 $ 6,354 $ - $ - --------------- ------------- -------------- ------------ Capital Share Transactions: Shares sold 49,638 90,207 550,823 2,555,983 Shares issued in reinvestment of distributions - - - - Shares repurchased (720,289) (94,586) (2,202,830) (3,277,725) --------------- ------------- -------------- ------------ Net increase (decrease) from capital transactions (670,651) (4,379) (1,652,007) (721,742) =============== =============== ================ ==============
See accompanying notes which are an integral part of the financial statements. MONTEAGLE FUNDS STATEMENTS OF CHANGES IN NET ASSETS MONTEAGLE MONTEAGLE VALUE LARGE CAP FUND FUND -------------------------------- -------------------------------- Year ended Year ended Year ended Year ended Increase (Decrease) in Net Assets Aug. 31, 2003 Aug.31,2002 Aug. 31, 2003 Aug.31,2002 ---------------- ------------- --------------- ------------- Operations: Net investment income (loss) $ 269,249 $ 327,860 $ 6,200 $ (22,674) Net realized gain (loss) on investment securities (363,394) (902,154) (1,899,662) (3,444,183) Change in net unrealized appreciation (depreciation) 1,598,703 (3,347,943) 2,127,692 410,174 --------------- ------------- -------------- ------------ Net increase (decrease) in net assets resulting from operations 1,504,558 (3,922,237) 234,230 (3,056,683) --------------- ------------- -------------- ------------ Distributions: From net investment income (283,519) (304,649) - - From net realized gain - (2,834,170) - - --------------- ------------- -------------- ------------ Total distributions (283,519) (3,138,819) - - --------------- ------------- -------------- ------------ Capital Share Transactions: Proceeds from shares sold 308,764 1,923,267 9,691,231 126,949 Reinvestment of distributions - - - - Amount paid for shares repurchased (5,888,358) (2,177,075) (12,525,229) (377,876) --------------- ------------- -------------- ------------ Net increase (decrease) in net assets resulting from share transactions (5,579,594) (253,808) (2,833,998) (250,927) --------------- ------------- -------------- ------------ Total Increase (Decrease) in Net Assets (4,358,555) (7,314,864) (2,599,768) (3,307,610) --------------- ------------- -------------- ------------ Net Assets: Beginning of period 19,010,336 26,325,200 6,660,579 9,968,189 --------------- ------------- -------------- ------------ End of period $ 14,651,781 $19,010,336 $ 4,060,811 $ 6,660,579 =============== ============= ============== ============ Accumulated undistributed net investment income included in net assets at end of period $ (14,270) $ - $ 6,111 $ (89) --------------- ------------- -------------- ------------ Capital Share Transactions: Shares sold 32,640 156,287 2,107,696 20,108 Shares issued in reinvestment of distributions - - - - Shares repurchased (637,832) (182,421) (2,733,891) (68,543) --------------- ------------- -------------- ------------ Net increase (decrease) from capital transactions (605,192) (26,134) (626,195) (48,435) =============== ============= ============== ============
See accompanying notes which are an integral part of the financial statements. MONTEAGLE FUNDS FINANCIAL HIGHLIGHTS The tables below set forth financial data for a share of beneficial interest outstanding throughout each period presented. MONTEAGLE FIXED INCOME FUND ------------------------------------------------------------------------- Year ended Year ended Year ended Period ended Aug. 31, 2003 Aug. 31, 2002 Aug. 31, 2001 Aug. 31, 2000 (a) ----------------- ----------------- ---------------- -------------------- Selected Per Share Data Net asset value, beginning of period $ 11.17 $ 10.82 $ 10.06 $ 10.00 Income from investment operations Net investment income (loss) 0.42 0.49 0.55 0.28 Net realized and unrealized gain (loss) (0.08) 0.35 0.76 0.16 ----------------- ----------------- ---------------- -------------------- Total from investment operations 0.34 0.84 1.31 0.44 ----------------- ----------------- ---------------- -------------------- Less Distributions to shareholders: From net investment income (0.42) (0.49) (0.55) (0.38) From net realized gain (0.13) 0.00 0.00 0.00 ----------------- ----------------- ---------------- -------------------- Total distributions (0.55) (0.49) (0.55) (0.38) ----------------- ----------------- ---------------- -------------------- Net asset value, end of period $ 10.96 $ 11.17 $ 10.82 $ 10.06 ================= ================= ================ ==================== Total Return 3.06% 8.00% 13.37% 4.54% (b) Ratios and Supplemental Data Net assets, end of period (000) $ 29,562 $ 37,626 $ 36,506 $ 29,346 Ratio of expenses to average net assets 1.14% 0.97% 1.14% 1.15% (c) Ratio of net investment income to average net assets 3.76% 4.56% 5.28% 3.97% (c) Portfolio turnover rate 20.52% 48.58% 75.84% 58.87%
(a) December 20, 1999 (Commencement of Operations) through August 31, 2000. (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. MONTEAGLE FUNDS FINANCIAL HIGHLIGHTS The tables below set forth financial data for a share of beneficial interest outstanding throughout each period presented. MONTEAGLE OPPORTUNITY GROWTH FUND ------------------------------------------------------------------------- Year ended Year ended Year ended Period ended Aug. 31, 2003 Aug. 31, 2002 Aug. 31, 2001 Aug. 31, 2000 (a) ----------------- ----------------- ---------------- -------------------- Selected Per Share Data Net asset value, beginning of period $ 3.60 $ 4.00 $ 11.21 $ 10.00 ----------------- ----------------- ---------------- -------------------- Income from investment operations Net investment income (loss) (0.03) (0.03) 0.03 (0.04) Net realized and unrealized gain (loss) 0.18 (0.37) (4.46) 1.25 ----------------- ----------------- ---------------- -------------------- Total from investment operations 0.15 (0.40) (4.43) 1.21 ----------------- ----------------- ---------------- -------------------- Less Distributions to shareholders: From net investment income 0.00 0.00 0.00 0.00 From net realized gain 0.00 0.00 (2.78) 0.00 ----------------- ----------------- ---------------- -------------------- Total distributions 0.00 0.00 (2.78) 0.00 ----------------- ----------------- ---------------- -------------------- Net asset value, end of period $ 3.75 $ 3.60 $ 4.00 $ 11.21 ================= ================= ================ ==================== Total Return 4.17% (10.00)% (48.87)% 12.10% (b) Ratios and Supplemental Data Net assets, end of period (000) $ 21,463 $ 26,564 $ 32,380 $ 75,102 Ratio of expenses to average net assets before reimbursements 1.36% 1.37% 1.32% 1.27% (c) Ratio of expenses to average net assets after reimbursements 1.36% 1.34% 1.32% 1.27% (c) Ratio of net investment income to average net assets before reimbursements (0.79)% (0.69)% 0.55% (0.53)%(c) Ratio of net investment income to average net assets after reimbursements (0.79)% (0.67)% 0.55% (0.53)%(c) Portfolio turnover rate 478.58% 455.29% 545.28% 605.41%
(a) December 20, 1999 (Commencement of Operations) through August 31, 2000. (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. MONTEAGLE FUNDS FINANCIAL HIGHLIGHTS The tables below set forth financial data for a share of beneficial interest outstanding throughout each period presented. MONTEAGLE VALUE FUND ------------------------------------------------------------------------- Year ended Year ended Year ended Period ended Aug. 31, 2003 Aug. 31, 2002 Aug. 31, 2001 Aug. 31, 2000 (a) ----------------- ----------------- ---------------- -------------------- Selected Per Share Data Net asset value, beginning of period $ 9.77 $ 13.34 $ 11.66 $ 10.00 ----------------- ----------------- ---------------- -------------------- Income from investment operations Net investment income (loss) 0.16 0.17 0.14 0.06 Net realized and unrealized gain (loss) 1.14 (2.17) 1.88 1.60 ----------------- ----------------- ---------------- -------------------- Total from investment operations 1.30 (2.00) 2.02 1.66 ----------------- ----------------- ---------------- -------------------- Less Distributions to shareholders: From net investment income (0.15) (0.15) (0.12) 0.00 From net realized gain 0.00 (1.42) (0.22) 0.00 ----------------- ----------------- ---------------- -------------------- Total distributions (0.15) (1.57) (0.34) 0.00 ----------------- ----------------- ---------------- -------------------- Net asset value, end of period $ 10.92 $ 9.77 $ 13.34 $ 11.66 ================= ================= ================ ==================== Total Return 13.49% (16.95)% 17.56% 16.60% (b) Ratios and Supplemental Data Net assets, end of period (000) $ 14,652 $ 19,010 $ 26,325 $ 19,734 Ratio of expenses to average net assets 1.36% 1.35% 1.35% 1.36% (c) Ratio of net investment income to average net assets 1.72% 1.37% 1.15% 0.77% (c) Portfolio turnover rate 28.39% 58.62% 152.86% 375.67%
(a) December 20, 1999 (Commencement of Operations) through August 31, 2000. (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. MONTEAGLE FUNDS FINANCIAL HIGHLIGHTS The tables below set forth financial data for a share of beneficial interest outstanding throughout each period presented. MONTEAGLE LARGE CAP FUND ------------------------------------------------------------------------- Year ended Year ended Year ended Period ended Aug. 31, 2003 Aug. 31, 2002 Aug. 31, 2001 Aug. 31, 2000 (a) ----------------- ----------------- ---------------- -------------------- Selected Per Share Data Net asset value, beginning of period $ 4.62 $ 6.70 $ 9.92 $ 10.00 ----------------- ----------------- ---------------- -------------------- Income from investment operations Net investment income (loss) 0.01 (0.02) (0.03) 0.01 Net realized and unrealized gain (loss) 0.36 (2.06) (3.19) (0.09) ----------------- ----------------- ---------------- -------------------- Total from investment operations 0.37 (2.08) (3.22) (0.08) ----------------- ----------------- ---------------- -------------------- Less Distributions to shareholders: From net investment income 0.00 0.00 0.00 0.00 From net realized gain 0.00 0.00 0.00 0.00 ----------------- ----------------- ---------------- -------------------- Total distributions 0.00 0.00 0.00 0.00 ----------------- ----------------- ---------------- -------------------- Net asset value, end of period $ 4.99 $ 4.62 $ 6.70 $ 9.92 ================= ================= ================ ==================== Total Return 8.01% (31.04)% (32.44)% (0.80)(b) Ratios and Supplemental Data Net assets, end of period (000) $ 4,061 $ 6,661 $ 9,968 $ 12,820 Ratio of expenses to average net assets 1.27% 1.03% 1.26% 1.27% (c) Ratio of net investment income to average net assets 0.12% (0.26)% (0.44)% 0.10% (c) Portfolio turnover rate 26.93% 86.74% 70.04% 68.00%
(a) January 18, 2000 (Commencement of Operations) through August 31, 2000. (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. Monteagle Funds Notes to Financial Statements August 31, 2003 NOTE 1. ORGANIZATION The Monteagle Fixed Income Fund (the "Fixed Income Fund"), Monteagle Opportunity Growth Fund (the "Opportunity Growth Fund"), Monteagle Value Fund (the "Value Fund"), and Monteagle Large Cap Fund (the "Large Cap Fund") (each a "Fund" or collectively, the "Funds") were organized as a series of AmeriPrime Advisors Trust (the "Trust") on August 3, 1999. The Fixed Income Fund, Opportunity Growth Fund, and Value Fund, commenced operations on December 20, 1999, and the Large Cap Fund commenced operations on January 18, 2000. The Trust is an open-end investment company established under the laws of Ohio by an Agreement and Declaration of Trust dated August 3, 1999 (the "Trust Agreement"). The Trust Agreement permits the Board of Trustees to issue an unlimited number of shares of beneficial interest of separate series without par value. Each Fund is one of a series of funds currently offered by the Trust. The investment objective of the Fixed Income Fund is total return and the investment objectives of the Opportunity Growth Fund, the Value Fund, and the Large Cap Fund are to provide long-term growth of capital. The Opportunity Growth Fund is a non-diversified series of the Trust. The Fixed Income Fund, the Large Cap Fund, and the Value Fund are diversified series of the Trust. The investment manager to the Funds is Nashville Capital Corporation ("Investment Manager"). The Investment Manager retains an Advisor for each fund. 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- Securities that are traded on any exchange or on the NASDAQ over-the-counter market are valued at the last quoted closing price. Lacking a last closing price, a security is valued at its last bid price except when, in the applicable adviser's opinion, the last bid price does not accurately reflect the current value of the security. All other securities for which over-the-counter market quotations are readily available are valued at their last bid price. When market quotations are not readily available, when the applicable advisor determines the last bid price does not accurately reflect the current value or when restricted securities are being valued, such securities are valued as determined in good faith by the applicable advisor, in conformity with guidelines adopted by and subject to review of the Board of Trustees. Fixed income securities generally are valued by using market quotations, but may be valued on the basis of prices furnished by a pricing service when the applicable adviser 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 applicable advisor decides that a price provided by the pricing services does not accurately reflect the fair market value of the securities, when prices are not readily available from a pricing service or when restricted or illiquid securities are being valued, securities are valued at fair value as determined in good faith by the advisor, in conformity with guidelines adopted by and subject to the Board of Trustees. Short term investments in fixed income securities with maturities of less than 60 days when acquired, or which subsequently are within 60 days of maturity, are valued by using the amortized cost method of valuation, which the Board of Trustees has determined will represent fair value. Federal Income Taxes- Each Fund intends to qualify each year as a "regulated investment company" under Sub-Chapter M of the Internal Revenue Code of 1986, as amended. By so qualifying, each Fund will not be subject to federal income taxes to the extent that it distributes substantially all of its net investment income and any realized capital gains. Dividends and Distributions- 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 long term capital gains and its net short term capital gains at least once a year. The Fixed Income Fund distributes its net investment income on a monthly basis. Monteagle Funds Notes to Financial Statements August 31, 2003 - continued NOTE 2. SIGNIFICANT ACCOUNTING POLICIES - continued Other- Each Fund follows industry practice and records security transactions on the trade date. The specific identification method is used for determining gains or losses for financial statements and income tax purposes. Dividend income is recorded on the ex-dividend date and interest income is recorded on an accrual basis. Generally accepted accounting principles require that permanent financial reporting tax differences relating to shareholder distributions be reclassified to paid-in capital for the Opportunity Growth Fund. NOTE 3. FEES AND OTHER TRANSACTIONS WITH AFFILIATES Nashville Capital Corporation, 209 10th Avenue South, Suite 332, Nashville TN 37203, serves as Investment Manager to the Funds. In this capacity, Nashville Capital Corporation advises and assists the officers of the Trust in conducting the business of the Funds and is responsible for providing general investment advice and guidance to the Funds. However, Nashville Capital Corporation has delegated responsibility for the selection and ongoing monitoring of the securities in each Fund's investment portfolio to the Funds' respective advisors set forth below. Each Fund is authorized to pay Nashville Capital Corporation a fee based on average daily net assets at the following rates: Assets Opportunity Growth Value Fixed Income Large Cap Up to and including $25 million 1.35% 1.35% 1.15% 1.25% From $25 up to and including $50 million 1.30% 1.25% 1.10% 1.13% From $50 up to and including $100 million 1.18% 1.10% 0.97% 1.00% Over $100 million 1.10% 1.00% 0.90% 0.95%
Under the terms of each Fund's management agreement (the "Agreement"), the Investment Manager manages each Fund's investments subject to approval of the Board and pays all of the expenses of each Fund except brokerage fees and commissions, taxes, borrowing costs (such as (a) interest and (b) dividend expenses on securities sold short), fees and expenses of non-interested person trustees, 12b-1 expenses and extraordinary expenses. It should be noted that most investment companies pay their own operating expenses directly, while the Funds' expenses, except those specified above, are paid by the Investment Manager. For the year ended August 31, 2003, the Investment Manager received fees of $386,866, $301,450, $211,678 and $61,997 from the Fixed Income, Opportunity Growth, Value and Large Cap Funds, respectively. Large Cap Fund and Fixed Income Fund. The Investment Manager has retained Howe and Rusling, Inc. ("H & R") to serve as the adviser to the Large Cap Fund and the Fixed Income Fund. The firm was established in 1930. The Howe and Rusling Investment Committee is primarily responsible for the day-to-day management of the Large Cap and Fixed Income Funds. Nashville Capital Corporation has agreed to pay H & R an annual advisory fee for the Large Cap Fund of 0.40% of net assets up to $25 million, 0.30% of net assets from $25 million up to $50 million, and 0.25% of net assets of $50 million and greater. Nashville Capital Corporation has agreed to pay H & R an annual advisory fee for the Fixed Income Fund of 0.30% of net assets up to $25 million, 0.25% of net assets from $25 million up to $50 million, and 0.20% of net assets of $50 million and greater. Opportunity Growth Fund. The Investment Manager has retained T.H. Fitzgerald, Jr. (d/b/a T.H. Fitzgerald & Co.) to serve as the adviser to the Opportunity Growth Fund. The firm has been owner-managed since its founding in 1959. Mr. Fitzgerald is primarily responsible for the day-to-day management of the Opportunity Growth Fund. Nashville Capital Corporation has agreed to pay T.H. Fitzgerald & Co. an annual advisory fee equal to 0.70% of net assets up to $25 million, 0.60% of net assets from $25 million up to $50 million, and 0.45% of net assets from $50 million up to $100 million, and 0.40% of net assets of $100 million and greater. Monteagle Funds Notes to Financial Statements August 31, 2003 - continued NOTE 3. FEES AND OTHER TRANSACTIONS WITH AFFILIATES - continued Value Fund. The Investment Manager has retained Robinson Investment Group, Inc. to serve as the adviser to the Value Fund. Russell L. Robinson founded the firm in 1996. Mr. Robinson is primarily responsible for the day-to-day management of the Value Fund. Nashville Capital Corporation has agreed to pay Robinson Investment Group, Inc. an annual advisory fee of 0.60% of net assets up to $25 million, 0.45% of net assets from $25 million up to $50 million, 0.35% of net assets from $50 million up to $100 million, and 0.30% of net assets of $100 million and greater. The Funds retain Unified Fund Services, Inc. ("Unified"), a wholly owned subsidiary of Unified Financial Services, Inc., to manage the Fund's business affairs and to provide the Funds with administrative, transfer agency, and fund accounting services, including all regulatory reporting and necessary office equipment and personnel. The Investment Manager paid all administrative, transfer agency, and fund accounting fees on behalf of the Funds per the Agreement. Certain Trustees and the officers of the Trust are members of management and employees of Unified, and/or shareholders of Unified Financial Services, Inc., the parent of Unified. The Funds retain Unified Financial Securities, Inc., a wholly owned subsidiary of Unified Financial Services, Inc. to act as the principal distributor of their shares. There were no payments made to Unified Financial Securities, Inc. during the year ended August 31, 2003. Timothy L. Ashburn (a Trustee and officer of the Trust) and Thomas G. Napurano (an officer of the Trust) are a director and officer, respectively, of the Distributor and of Unified Financial Services, Inc. (the parent company of the Distributor), and may be deemed to be affiliates of the Distributor. NOTE 4. INVESTMENTS Fixed Income Fund. For the year ended August 31, 2003, purchases and sales of investment securities, other than short-term investments, aggregated $6,678,865, and $13,241,399, respectively. The gross unrealized appreciation for all securities totaled $1,659,474 and the gross unrealized depreciation for all securities totaled $112,547 for a net unrealized appreciation of $1,546,927. The aggregate cost of securities for federal income tax purposes at August 31, 2003 was $27,722,275. Opportunity Growth Fund. For the year ended August 31, 2003, purchases and sales of investment securities, other than short-term investments, aggregated $86,621,895 and $69,622,956, respectively. The gross unrealized appreciation for all securities totaled $2,725,121 and the gross unrealized depreciation for all securities totaled $2,642,492 for a net unrealized appreciation of $82,629. The aggregate cost of securities for federal income tax purposes at August 31, 2003 was $22,612,413. The difference between book cost and tax cost consist of wash sales in the amount of $239,364 and post-October losses in the amount of $2,230,232. Value Fund. For the year ended August 31, 2003, purchases and sales of investment securities, other than short-term investments, aggregated $4,395,786 and $10,051,751, respectively. The gross unrealized appreciation for all securities totaled $1,692,788 and the gross unrealized depreciation for all securities totaled $2,610,275 for a net unrealized depreciation of $917,487. The aggregate cost of securities for federal income tax purposes at August 31, 2003 was $15,546,076. The difference between book cost and tax cost consist of wash sales in the amount of $90,704 and post-October losses in the amount of $629,539. Large Cap Fund. For the year ended August 31, 2003, purchases and sales of investment securities, other than short-term investments, aggregated $1,301,123 and $3,989,139 respectively. The gross unrealized appreciation for all securities totaled $243,698 and the gross unrealized depreciation for all securities totaled $2,524,325 for a net unrealized depreciation of $2,280,627. The aggregate cost of securities for federal income tax purposes at August 31, 2003 was $6,339,237. The difference between book cost and tax cost consists of wash sales in the amount of $23,826 and post-October losses in the amount of $1,859,848. Monteagle Funds Notes to Financial Statements August 31, 2003 - continued NOTE 5. ESTIMATES Preparation of financial statements in accordance with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. NOTE 6. RELATED PARTY TRANSACTIONS The 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 August 31, 2003, Farmers and Merchants Corporation, for the benefit of its customers, beneficially owned 100% of each Fund. NOTE 7. CAPITAL LOSS CARRYFORWARDS Opportunity Growth Fund. At August 31, 2003, the Fund had available for federal tax purposes an unused capital loss carryforward of $18,965,433, which $16,640,805 expires in 2009, $1,131,479 expires in 2010 and $1,193,149 expires in 2011. The Fund elected to defer post-October losses of $2,230,232. Value Fund. At August 31, 2003, the Fund had available for federal tax purposes an unused capital loss carryforward of $1,155,855 which expires in 2011. The Fund elected to defer post-October losses of $629,539. Large Cap Fund. At August 31, 2003, the Fund had available for federal tax purposes an unused capital carryforward of $4,766,624, which $470,032 expires in 2008, $826,803 expires in 2009, $425,424 expires in 2010, and $3,044,365 expires in 2011. The Fund has elected to defer post-October losses of $1,859,848. Capital loss carryforwards are available to offset future realized gains. To the extent that these carryforwards are used to offset future realized capital gains, it is probable that the amount, which is offset, will not be distributed. NOTE 8. DISTRIBUTION TO SHAREHOLDERS Fixed Income Fund. The Fund paid monthly distributions of net investment income totaling $0.42. On December 20, 2002, a long-term capital gain distribution of $0.13 per share was declared. The distribution was paid on December 20, 2002, for shareholders of record on December 19, 2002. The tax character of distributions paid during fiscal years 2003 and 2002 was as follows. Distributions paid from: 2003 2002 ---------------- ------------------ Ordinary income $ 1,278,249 $ 1,657,250 Short-term Capital Gain - - Long-term Capital Gain 439,848 - ---------------- ------------------ $ 1,718,097 $ 1,657,250 ================ ==================
Monteagle Funds Notes to Financial Statements August 31, 2003 - continued NOTE 8. DISTRIBUTION TO SHAREHOLDERS - continued Opportunity Growth Fund. There were no distributions during the fiscal year ended August 31, 2003. Value Fund. On December 20, 2002, an income distribution of $0.1473 was declared. The dividend was paid on December 20, 2002, to shareholders of record on December 19, 2002. The tax character of distributions paid during the fiscal years 2003 and 2002 was as follows: Distributions paid from: 2003 2002 ---------------- --------------- Ordinary income $ 283,519 $ 304,649 Short-term Capital Gain - 2,722,737 Long-term Capital Gain - 111,433 ---------------- --------------- $ 283,519 $ 3,138,819 ================ ===============
Large Cap Fund. There were no distributions during the fiscal year ended August 31, 2003. As of August 31, 2003, the components of distributable earnings on a tax basis were as follows: Fixed Fund Opportunity Value Large Cap ---------------- ------------------ ---------------- ---------------- Undistributable ordinary income (accumulated losses) $ 111,588 $ - $ (14,270) $ 6,111 Undistributable long-term capital gain (accumulated losses) 294,713 (19,187,094) (1,155,855) (4,766,623) Unrealized appreciation/(depreciation) 1,546,927 82,629 (917,487) (2,280,627) ---------------- ------------------ ---------------- ---------------- $ 1,953,228 $ (19,104,465) $ (2,087,612) $ (7,041,139) ================ ================== ================ ================
NOTE 9. SIGNIFICANT EVENT (Unaudited) On August 29, 2003, a special meeting of shareholders was held on behalf of the Large Cap Fund. Two issues were discussed and approved. The first issue was a new management agreement for the Fund with Nashville Capital Corporation. The second issue was a new advisory agreement between Northstar Capital Management, Inc. and Nashville Capital Corporation for the Fund. Both agreements were approved and went into effect on September 1, 2003. The results of the vote of the shareholders of the Large Cap Fund to approve a new Management Agreement between the Trust and Nashville Capital Corporation: For Approval Against Approval Abstain - -------------------------------------------------------------------------------- 813,387.698 0.000 0.000 - --------------------------------------------------------------------------------
The management fee schedule changed as a result of the new Management Agreement. The new fee schedule is as follows: Assets Fees - ------------------------------------------------------------------------ Up to and including $25 million 1.35% - ------------------------------------------------------------------------ From $25 million up to and including $50 million 1.25% - ------------------------------------------------------------------------ From $50 million up to and including $100 million 1.10% - ------------------------------------------------------------------------ Over $100 million 1.00% - ------------------------------------------------------------------------
Monteagle Funds Notes to Financial Statements August 31, 2003 - continued NOTE 9. SIGNIFICANT EVENT (Unaudited) - continued The results of the vote of the shareholders of the Large Cap Fund on the proposal to approve a new Advisory Agreement between Nashville Capital Corporation and Northstar Capital Management, Inc.: For Approval Against Approval Abstain - -------------------------------------------------------------------------------- 813,387.698 0.000 0.000 - --------------------------------------------------------------------------------
The Large Cap Fund changed its name to the Monteagle Large Cap Growth Fund. This change became effective September 1, 2003. TRUSTEES AND OFFICERS (Unaudited) The Board of Trustees supervises the business activities of the Trust. Each Trustee serves as a trustee until termination of the Trust unless the Trustee dies, resigns, retires, or is removed. The following table provides information regarding each Trustee who is an "interested person" of the Trust, as defined in the Investment Company Act of 1940, and each officer of the Trust. - ----------------------------- -------------------------------------------- ------------------------------- --------------------- Number of Name, Age and Address Position(s) Held with the Fund Complex1 Length of Time Served Portfolios in Fund Complex1 Overseen by Trustee - ----------------------------- -------------------------------------------- ------------------------------- --------------------- - ----------------------------- -------------------------------------------- ------------------------------- --------------------- Timothy Ashburn2 President, Secretary and Trustee President and Secretary since 24 October 2002; Trustee of c/o Unified Fund Services, AmeriPrime Advisors Trust Inc. since November 2002, 431 N. Pennsylvania St. AmeriPrime Funds since Indianapolis, IN 46204 December 2002, and Unified Series Trust since October Year of Birth: 1950 2002 - ----------------------------- -------------------------------------------- ------------------------------- ---------------------
- -------------------------------------------------------------------------- ----------------------------------------------------- Principal Occupations During Past 5 Years Other Directorships Held by Trustee - -------------------------------------------------------------------------- ----------------------------------------------------- - -------------------------------------------------------------------------- ----------------------------------------------------- Chairman of Unified Financial Services, Inc. since 1989 and Chief Unified Financial Services, Inc. Executive Officer from 1989 to 1992 and 1994 to April 2002; President of since 1989 Unified Financial Services from November 1997 to April 2000. - -------------------------------------------------------------------------- -----------------------------------------------------
- ----------------------------- -------------------------------------------- ------------------------------- --------------------- Number of Name, Age and Address Position(s) Held with the Fund Complex1 Length of Time Served Portfolios in Fund Complex1 Overseen by Trustee - ----------------------------- -------------------------------------------- ------------------------------- --------------------- - ----------------------------- -------------------------------------------- ------------------------------- --------------------- Ronald C. Tritschler3 Trustee Trustee of AmeriPrime Funds 24 and Unified Series Trust c/o Unified Fund Services, since December 2002 and Inc. AmeriPrime Advisors Trust 431 N. Pennsylvania St. since November 2002 Indianapolis, IN 46204 Year of Birth: 1952 - ----------------------------- -------------------------------------------- ------------------------------- ---------------------
- -------------------------------------------------------------------------- ----------------------------------------------------- Principal Occupations During Past 5 Years Other Directorships Held by Trustee - -------------------------------------------------------------------------- ----------------------------------------------------- - -------------------------------------------------------------------------- ----------------------------------------------------- Chief Executive Officer, Director and legal counsel of The Webb None Companies, a national real estate company, from 2001 to present; Executive Vice President and Director of The Webb Companies from 1990 to 2000; Director, The Lexington Bank, from 1998 to present; Director, Vice President and legal counsel for The Traxx Companies, an owner and operator of convenience stores, from 1989 to present. - -------------------------------------------------------------------------- -----------------------------------------------------
- ----------------------------- -------------------------------------------- ------------------------------- --------------------- Position(s) Held with the Fund Complex1 Length of Time Served Number of Name, Age and Address Portfolios in Fund Complex1 Overseen by Trustee - ----------------------------- -------------------------------------------- ------------------------------- --------------------- - ----------------------------- -------------------------------------------- ------------------------------- --------------------- Thomas G. Napurano Treasurer and Chief Financial Officer Since October 2002 for N/A AmeriPrime Funds and c/o Unified Fund Services, AmeriPrime Advisors Trust; Inc. since December 2002 for 431 N. Pennsylvania St. Unified Series Trust Indianapolis, IN 46204 Year of Birth: 1941 - ----------------------------- -------------------------------------------- ------------------------------- ---------------------
- -------------------------------------------------------------------------- ----------------------------------------------------- Principal Occupations During Past 5 Years Other Directorships Held by Trustee - -------------------------------------------------------------------------- ----------------------------------------------------- - -------------------------------------------------------------------------- ----------------------------------------------------- Chief Financial Officer and Executive Vice President of Unified N/A Financial Services, Inc., the parent company of the Trust's administrator and principal underwriter; member of the board of directors of Unified Financial Services, Inc. from 1989 to March 2002. - -------------------------------------------------------------------------- -----------------------------------------------------
- ----------------------------- -------------------------------------------- ------------------------------- --------------------- Number of Portfolios Name, Age and Address Position(s) Held Length of Time Served in Fund Complex1 with Trust Overseen by Trustee - ----------------------------- -------------------------------------------- ------------------------------- --------------------- - ----------------------------- -------------------------------------------- ------------------------------- --------------------- Carol Highsmith Assistant Secretary Since October 2002 for N/A AmeriPrime Funds and c/o Unified Fund Services, Ameriprime Advisors Trust; Inc. since December 2002 for 431 N. Pennsylvania St. Unified Series Trust Indianapolis, IN 46204 Year of Birth: 1964 - ----------------------------- -------------------------------------------- ------------------------------- ---------------------
- -------------------------------------------------------------------------- ----------------------------------------------------- Principal Occupations During Past 5 Years Other Directorships Held - -------------------------------------------------------------------------- ----------------------------------------------------- - -------------------------------------------------------------------------- ----------------------------------------------------- Employed by Unified Fund Services, Inc. (November 1994 to present); Vice None President and Asst. Secretary of Lindbergh Funds; Asst. Secretary of AmeriPrime Funds and AmeriPrime Advisors Trust (October 2002 to present). - -------------------------------------------------------------------------- -----------------------------------------------------
1 The term "Fund Complex" refers to AmeriPrime Funds, AmeriPrime Advisors Trust, and Unified Series Trust. 2 Mr. Ashburn is an "interested person" of the Trust because he is an officer of the Trust. In addition, he may be deemed to be an "interested person" of the Trust because he is Chairman and a director of Unified Financial Securities, Inc., the principal underwriter for certain funds in the Fund Complex. 3 Mr. Tritschler may be deemed to be an "interested person" of the Trust because he has an ownership interest in Unified Financial Services, Inc., the parent of the principal underwriter for certain funds in the Fund Complex. The following table provides information regarding each Trustee who is not an "interested person" of the Trust, as defined in the Investment Company Act of 1940. - ------------------------------ ---------------------------------- ----------------------- ------------------------- Name, Age and Address Position(s) Held with the Fund Length of Time Served Number of Portfolios in Complex1 Fund Complex1 Overseen by Trustee - ------------------------------ ---------------------------------- ----------------------- ------------------------- - ------------------------------ ---------------------------------- ----------------------- ------------------------- Gary E. Hippenstiel Trustee Trustee of AmeriPrime 24 Funds since 1995, c/o Unified Fund Services, AmeriPrime Advisors Inc. Trust since July 2002 431 N. Pennsylvania St. and Unified Series Indianapolis, IN 46204 Trust since December 2002 Year of Birth: 1947 - ------------------------------ ---------------------------------- ----------------------- -------------------------
- ----------------------------------------------------------------- ------------------------------------------------- Principal Occupations During Past 5 Years Other Directorships Held by Trustee - ----------------------------------------------------------------- ------------------------------------------------- - ----------------------------------------------------------------- ------------------------------------------------- Director, Vice President and Chief Investment Officer of Legacy None Trust Company, N.A. since 1992. - ----------------------------------------------------------------- -------------------------------------------------
- ------------------------------ ---------------------------------- ----------------------- ------------------------- Position(s) Held Length of Time Served Number of Portfolios in Name, Age and Address with the Fund Complex1 Fund Complex1 Overseen by Trustee - ------------------------------ ---------------------------------- ----------------------- ------------------------- - ------------------------------ ---------------------------------- ----------------------- ------------------------- Stephen A. Little Trustee Trustee of AmeriPrime 24 Funds and Unified c/o Unified Fund Services, Series Trust since Inc. December 2002 and 431 N. Pennsylvania St. AmeriPrime Advisors Indianapolis, IN 46204 Trust since November 2002 Year of Birth: 1946 - ------------------------------ ---------------------------------- ----------------------- -------------------------
- ----------------------------------------------------------------- ------------------------------------------------- Principal Occupations During Past 5 Years Other Directorships Held by Trustee - ----------------------------------------------------------------- ------------------------------------------------- - ----------------------------------------------------------------- ------------------------------------------------- President and founder, The Rose, Inc., a registered investment None advisor, since April 1993. - ----------------------------------------------------------------- -------------------------------------------------
- ------------------------------ ---------------------------------- ----------------------- ------------------------- Position(s) Held with the Fund Number of Portfolios in Name, Age and Address Complex1 Length of Time Served Fund Complex1 Overseen by Trustee - ------------------------------ ---------------------------------- ----------------------- ------------------------- - ------------------------------ ---------------------------------- ----------------------- ------------------------- Daniel Condon Trustee Trustee of AmeriPrime 24 Funds and Unified c/o Unified Fund Services, Series Trust since Inc. December 2002 and 431 N. Pennsylvania St. AmeriPrime Advisors Indianapolis, IN 46204 Trust since November 2002 Year of Birth: 1950 - ------------------------------ ---------------------------------- ----------------------- -------------------------
- ----------------------------------------------------------------- ------------------------------------------------- Principal Occupations During Past 5 Years Other Directorships Held by Trustee - ----------------------------------------------------------------- ------------------------------------------------- - ----------------------------------------------------------------- ------------------------------------------------- Vice President and General Manager, International Crankshaft None Inc., an automotive equipment manufacturing company, 1990 to present; Trustee, The Unified Funds, from 1994 to 2002; Trustee, Star Select Funds, a REIT mutual fund, from 1997 to 2000. - ----------------------------------------------------------------- -------------------------------------------------
1 The term "Fund Complex" refers to AmeriPrime Funds, AmeriPrime Advisors Trust and Unified Series Trust. 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: (1) by calling the Fund at (877) 272-9746; (2) on the Fund's website at www.nashcap.com; and (3) on the SEC's website at www.sec.gov. INDEPENDENT AUDITOR'S REPORT To The Shareholders and Board of Trustees Monteagle Fixed Income Fund Monteagle Opportunity Growth Fund Monteagle Value Fund Monteagle Large Cap Fund (series' of AmeriPrime Advisors Trust) We have audited the accompanying statements of assets and liabilities, including the schedules of investments, of the Monteagle Funds (comprising, respectively, the Monteagle Fixed Income Fund, Monteagle Opportunity Growth Fund, Monteagle Value Fund and Monteagle Large Cap Fund), as of August 31, 2003, and the related statements of operations for the year then ended, the statements of changes in net assets for each of the two years in the period then ended, and the financial highlights for each of the periods indicated. These financial statements and financial highlights are the responsibility of the Funds' management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits. We conducted our audits in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. Our procedures included confirmation of investments and cash held as of August 31, 2003 by correspondence with the custodian and brokers. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial positions of the Monteagle Fixed Income Fund, Monteagle Opportunity Growth Fund, Monteagle Value Fund and Monteagle Large Cap Fund as of August 31, 2003, the results of their operations for the year then ended, the changes in their net assets for each of the two years in the period then ended, and their financial highlights for each of the periods indicated in conformity with accounting principles generally accepted in the United States of America. /s/ McCurdy & Associates CPA's, Inc. McCurdy & Associates CPA's, Inc. Westlake, Ohio 44145 September 11, 2003 Item 2. Code of Ethics. (a) As of the end of the period covered by this report, the registrant has adopted a code of ethics that applies to the registrant's principal executive officer, principal financial officer, principal accounting officer or controller, or persons performing similar functions, regardless of whether these individuals are employed by the registrant or a third party. (b) For purposes of this item, "code of ethics" means written standards that are reasonably designed to deter wrongdoing and to promote: (1) Honest and ethical conduct, including the ethical handling of actual or apparent conflicts of interest between personal and professional relationships; (2) Full, fair, accurate, timely, and understandable disclosure in reports and documents that a registrant files with, or submits to, the Commission and in other public communications made by the registrant; (3) Compliance with applicable governmental laws, rules, and regulations; (4) The prompt internal reporting of violations of the code to an appropriate person or persons identified in the code; and (5) Accountability for adherence to the code. (c) Amendments: During the period covered by the report, there have not been any amendments to the provisions of the code of ethics. (d) Waivers: During the period covered by the report, the registrant has not granted any express or implicit waivers from the provisions of the code of ethics. Item 3. Audit Committee Financial Expert. (a) The registrant's Board of Trustees has determined that the registrant does not have an audit committee financial expert. The committee members and the full Board considered the possibility of adding a member that would qualify as an expert. The audit committee determined that, although none of its members meet the technical definition of an audit committee financial expert, the committee has sufficient financial expertise to adequately perform its duties under the Audit Committee Charter without the addition of a qualified expert. Item 4. Principal Accountant Fees and Services. Not applicable 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. Reserved. Item 9. Controls and Procedures. (a) Based on an evaluation of the registrant's disclosure controls and procedures as of September 30, 2003, 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 10. Exhibits. (a)(1) Code is filed herewith. (a)(2) Certifications required by Item 10(a)(2) of Form N-CSR are filed herewith. (b) Certification required by Item 10(b) of Form N-CSR 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 10/29/03 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 10/29/03 By /s/ Thomas G. Napurano Thomas Napurano, Treasurer and Chief Financial Officer Date 10/29/03 EX-31 3 ex99cert.txt AMERIPRIME ADVISORS TRUST Exhibit 99.CERT CERTIFICATIONS I, Timothy Ashburn, certify that: 1. I have reviewed this report on Form N-CSR of AmeriPrime Advisors Trust; 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; 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: 10/29/03 /s/ Timothy Ashburn Timothy Ashburn, President I, Thomas Napurano, certify that: 1. I have reviewed this report on Form N-CSR of Ameriprime Advisors Trust; 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; 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: 10/29/03 /s/ Thomas G. Napurano Thomas Napurano, Treasurer and Chief Financial Officer EX-99.906 4 ex99906cert.txt AMERIPRIME ADVISORS TRUST EX-99.906CERT certification Timothy Ashburn, President, and Thomas Napurano, Treasurer and Chief Financial Officer of Ameriprime Advisors Trust (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 August 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 Treasurer and Chief Financial Officer Ameriprime Advisors Trust Ameriprime Advisors Trust /s/ Timothy Ashburn /s/ Thomas G. Napurano Timothy Ashburn Thomas Napurano Date: 10/29/03 Date: 10/29/03 A signed original of this written statement required by Section 906 of the Sarbanes-Oxley Act of 2002 has been provided to Ameriprime Advisors Trust and will be retained by Ameriprime Advisors Trust 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. 1350 and is not being filed as part of the Form N-CSR filed with the Commission. EX-99.CODE ETH 5 ex99codeeth.txt AMERIPRIME ADVISORS TRUST AMERIPRIME ADVISORS TRUST AMERIPRIME FUNDS UNIFIED SERIES TRUST CODE OF ETHICS FOR PRINCIPAL EXECUTIVE AND SENIOR FINANCIAL OFFICERS I. Covered Officers/Purpose of the Code This code of ethics (this "Code") applies to the Principal Executive Officer and Principal Financial Officer and those serving similar functions (the "Covered Officers" each of whom is set forth in Exhibit A) of AmeriPrime Advisors Trust, AmeriPrime Funds and Unified Series Trust (each a "Company") for the purpose of promoting: o honest and ethical conduct, including the ethical handling of actual or apparent conflicts of interest between personal and professional relationships; o full, fair, accurate, timely and understandable disclosure in reports and documents that a Company files with, or submits to, the Securities and Exchange Commission ("SEC") and in other public communications made by a Company; o compliance with applicable laws and governmental rules and regulations; o the prompt internal reporting of violations of this Code to an appropriate person or persons identified in this Code; and o accountability for adherence to this Code. Each Covered Officer should adhere to a high standard of business ethics and should be sensitive to situations that may give rise to actual as well as apparent conflicts of interest. II. Covered Officers Should Handle Ethically Actual and Apparent Conflicts of Interest Overview. A "conflict of interest" occurs when a Covered Officer's private interests interfere with the interests of, or the Covered Officer's service to, a Company. For example, a conflict of interest would arise if a Covered Officer, or a member of the Covered Officer's family, receives improper personal benefits as a result of the Covered Officer's position with the Company. Certain conflicts of interest arise out of the relationships between Covered Officers and a Company and already are subject to conflict of interest provisions in the Investment Company Act of 1940 ("Investment Company Act") and the Investment Advisers Act of 1940 ("Investment Advisers Act"). For example, Covered Officers may not individually engage in certain transactions (such as the purchase or sale of securities or other property) with a Company because of their status as "affiliated persons" of the Company. This Code does not, and is not intended to, repeat or replace any compliance programs and procedures of any Company or the investment adviser designed to prevent, or identify and correct, violations of the Investment Company Act and the Investment Advisers Act. Although typically not presenting an opportunity for improper personal benefit, conflicts arise from, or as a result of, the contractual relationship between a Company and an investment adviser or the administrator of which a Covered Officer is also an officer or employee. As a result, this Code recognizes that the Covered Officers will, in the normal course of their duties, whether formally for a Company or the administrator, be involved in establishing policies and implementing decisions that will have different effects on the adviser or the administrator and the Company. The participation of the Covered Officers in such activities is inherent in the contractual relationship between a Company and the administrator and is consistent with the performance by the Covered Officers of their duties as officers of the Company. Thus, if performed in conformity with the provisions of the Investment Company Act, such activities will be deemed to have been handled ethically. In addition, it is recognized by each Company's Board of Trustees ("Board") that the Covered Officers may also be officers or employees of one or more investment companies covered by other codes. Other conflicts of interest are covered by this Code, even if such conflicts of interest are not subject to provisions in the Investment Company Act and the Investment Advisers Act. The following list provides examples of conflicts of interest under this Code, but Covered Officers should keep in mind that these examples are not exhaustive. The overarching principle is that the personal interest of a Covered Officer should not be placed improperly before the interest of any Company. Each Covered Officer must: o not use personal influence or personal relationships improperly to influence investment decisions or financial reporting by a Company whereby the Covered Officer would benefit personally to the detriment of the Company; o not cause a Company to take action, or fail to take action, for the individual personal benefit of the Covered Officer rather than the benefit of the Company; o not use material non-public knowledge of portfolio transactions made or contemplated for a Company to trade personally or cause others to trade personally in contemplation of the market effect of such transactions; o report at least annually any affiliations or other relationships related to conflicts of interest that the Company's Trustees and Officers Questionnaire covers. The Secretary of each Company shall be designated the Compliance Officer of the Company, solely for purposes of this Code of Ethics. There are some conflict of interest situations that should always be discussed with the Compliance Officer of a Company, if material. Examples of these include: o service as a director on the board of any public company; o the receipt of any non-nominal gifts; o the receipt of any entertainment from any company with which a Company has current or prospective business dealings unless such entertainment is business-related, reasonable in cost, appropriate as to time and place, and not so frequent as to raise any questions of impropriety; o any ownership interest in, or any consulting or employment relationship with, any Company's service providers, other than its principal underwriter, administrator or any affiliated person thereof; and o a direct or indirect financial interest in commissions, transaction charges, soft dollar credits or spreads paid by a Company for effecting portfolio transactions or for selling or redeeming shares other than an interest arising from the Covered Officer's employment, such as compensation or equity ownership. III. Disclosure and Compliance o Each Covered Officer should familiarize himself with the disclosure requirements generally applicable to each Company. o Each Covered Officer should not knowingly misrepresent, or cause others to misrepresent, facts about a Company to others, whether within or outside the Company, including to the Company's directors and auditors, and to governmental regulators and self-regulatory organizations. o Each Covered Officer should, to the extent appropriate within the Covered Officer's area of responsibility, consult with other officers and employees of each Company and of the advisers or the administrator with the goal of promoting full, fair, accurate, timely and understandable disclosure in the reports and documents the Company files with, or submits to, the SEC and in other public communications made by the Company. o It is the responsibility of each Covered Officer to promote compliance with the standards and restrictions imposed by applicable laws, rules and regulations. IV. Reporting and Accountability Each Covered Officer must: o upon adoption of this Code (or thereafter as applicable, upon becoming a Covered Officer), affirm in writing to the Board that the Covered Officer has received, read, and understands this Code; o annually thereafter affirm to the Board that the Covered Officer has complied with the requirements of this Code; o not retaliate against any other Covered Officer or any employee of a Company or their affiliated persons for reports of potential violations that are made in good faith; and o notify the Compliance Officer promptly if the Covered Officer knows of any violation of this Code. Failure to do so is itself a violation of this Code. The Compliance Officer is responsible for applying this Code to specific situations in which questions are presented under it and has the authority to interpret this Code in any particular situation. However, any approvals or waivers sought by a Covered Officer will be considered by the Audit Committee (the "Committee"), which will make recommendations to the Board. Each Company will follow these procedures in investigating and enforcing this Code: o the Compliance Officer for the Company will take all appropriate action to investigate any potential violations reported to the Compliance Officer; o the Compliance Officer will review with the outside legal counsel to the Company the findings and conclusions of such investigation; o if, after such investigation and review, the Compliance Officer believes that no violation has occurred, the Compliance Officer is not required to take any further action; o any matter that the Compliance Officer believes is a violation will be reported to the Committee; o if the Committee concurs that a violation has occurred, it will inform and make a recommendation to the Board, which will consider appropriate action, which may include review of, and appropriate modifications to, applicable policies and procedures (including changes to this Code); notification of the violation to appropriate personnel of the investment adviser or the administrator or its board; or a recommendation to take disciplinary action against the Covered Officer, which may include, without limitation, dismissal; o the Board will be responsible for granting waivers, as appropriate; and o any changes to or waivers of this Code will, to the extent required, be disclosed as provided by SEC rules on Form N-CSR. V. Other Policies and Procedures This Code shall be the sole code of ethics adopted by each Company for purposes of Section 406 of the Sarbanes-Oxley Act and the rules and forms applicable to registered investment companies thereunder. Each Company's and its investment advisers' and underwriters codes of ethics under Rule 17j-1 under the Investment Company Act are separate requirements applying to the Covered Officers and others, and are not part of this Code. VI. Amendments Any amendments to this Code, other than amendments to Exhibit A, must be approved or ratified by a majority vote of the Board, including a majority of independent trustees. VII. Confidentiality To the extent possible, all records, reports and other information prepared, maintained or acquired pursuant to this Code will be treated as confidential, it being understood that it may be necessary or advisable, that certain matters be disclosed to third parties (e.g., to the board of directors or officers of the adviser or the administrator). VIII. Internal Use This Code is intended solely for the internal use by each Company and does not constitute an admission, by or on behalf of the Company, as to any fact, circumstance, or legal conclusion. Adopted July 21, 2003 Exhibit A Persons Covered by this Code of Ethics Timothy Ashburn Thomas Napurano Anthony Ghoston Ismael Lopez Carol Highsmith Exhibit B AMERIPRIME ADVISORS TRUST AMERIPRIME FUNDS UNIFIED SERIES TRUST Covered Officer Affirmation of Understanding In accordance with Section IV of the Code of Ethics for Principal Executive and Senior Financial Officers (the "Code"), the undersigned Covered Officer of the Company (as defined in the Code) hereby affirms to the Board that the Covered Officer has received, read, and understands the Code. Date: ___________________ _________________________________________ Covered Officer Exhibit C AMERIPRIME ADVISORS TRUST AMERIPRIME FUNDS UNIFIED SERIES TRUST Covered Officer Annual Affirmation For the period July 1, 2003 to May 31, 2004 In accordance with Section IV of the Code of Ethics for Principal Executive and Senior Financial Officers (the "Code"), the undersigned Covered Officer of the Company (as defined in the Code) hereby affirms to the Board that the Covered Officer, at all times during the period for which this affirmation is given, has complied with each of the requirements of the Code. Date: ___________________ _________________________________________ Covered Officer -----END PRIVACY-ENHANCED MESSAGE-----