N-CSR 1 iron0305ncsr.txt IRNO0305NCSR 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 St. 46204 -------------------------------------------------------------------------------- (Address of principal executive offices) (Zip code) Lynn Wood --------------------------- Unified Fund Services, Inc. --------------------------- 431 N. Pennsylvania St. --------------------------- Indianapolis, IN 46204 ---------------------------- (Name and address of agent for service) Registrant's telephone number, including area code: (317) 917-7000 ---------------------- Date of fiscal year end: 9/30 ----------------- Date of reporting period: 03/31/05 ---------------- Form N-CSR is to be used by management investment companies to file reports with the Commission not later than 10 days after the transmission to stockholders of any report that is required to be transmitted to stockholders under Rule 30e-1 under the Investment Company Act of 1940 (17 CFR 270.30e-1). The Commission may use the information provided on Form N-CSR in its regulatory, disclosure review, inspection and policymaking roles. A registrant is required to disclose the information specified by Form N-CSR, and the Commission will make this information public. A registrant is not required to respond to the collection of information contained in Form N-CSR unless the Form displays a currently valid Office of Management and Budget ("OMB") control number. Please direct comments concerning the accuracy of the information collection burden estimate and any suggestions for reducing the burden to Secretary, Securities and Exchange Commission, 450 Fifth Street, NW, Washington, DC 20549-0609. The OMB has reviewed this collection of information under the clearance requirements of 44 U.S.C. ss. 3507. ITEM 1. REPORTS TO STOCKHOLDERS. ================================================================================ IRON MARKET OPPORTUNITY FUND ================================================================================ SEMI-ANNUAL REPORT (UNAUDITED) MARCH 31, 2005 FUND ADVISOR: IRON FINANCIAL TWO NORTHFIELD PLAZA SUITE 250 NORTHFIELD, IL 60093 TOLL FREE: (877) 322-0575 FUND HOLDINGS - (UNAUDITED) ------------- IRON MARKET OPPORTUNITY FUND HOLDINGS AS OF MARCH 31, 2005 1 [CHART OMITTED] Government Agency Obligations - 41.29% Commercial Papers - 26.89% Corporate Bonds - 10.15% Preferred Securities - 9.90% Mutual Funds - 7.83% Mortgage Backed Bonds - 3.79% Municipal Bonds - 0.01% Other Assets Less Liabilities - 0.14% 1 As a percent of net assets. The Fund invests primarily in a broad range of fixed income securities (including investments, which may be extensive, in other mutual funds that invest primarily in fixed income securities). Fixed income securities include bonds, notes, mortgage-backed securities, corporate debt, government securities, municipal securities, and short term obligations, such as commercial paper and repurchase agreements. AVAILABILITY OF PORTFOLIO SCHEDULE ---------------------------------- The Fund files its complete schedule of portfolio holdings with the Securities and Exchange Commission ("SEC") for the first and third quarters of each fiscal year on Form N-Q. The Fund's Form N-Qs are available at the SEC's website at www.sec.gov. The Fund's Form N-Qs may be reviewed and copied at the Public Reference Room in Washington DC. Information on the operation of the Public Reference Room may be obtained by calling 1-800-SEC-0330. ABOUT YOUR FUND'S EXPENSES - (UNAUDITED) ---------------------------------------- As a shareholder of the Fund, you incur ongoing costs, including management fees and other Fund expenses. This Example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds. The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period from October 1, 2004 to March 31, 2005. 1 SUMMARY OF FUND'S EXPENSES - (UNAUDITED) -------------------------- Actual Expenses --------------- The first line of the table below provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.60), then multiply the result by the number in the first line under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period. Hypothetical Example for Comparison Purposes -------------------------------------------- The second line of the table below provides information about hypothetical account values and hypothetical expenses based on the Fund's actual expense ratios and an assumed rate of return of 5% per year before expenses, which is not the Fund's actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. ---------------------------------- -------------------- -------------------------- -------------------------- IRON MARKET OPPORTUNITY FUND BEGINNING ACCOUNT ENDING ACCOUNT EXPENSES PAID DURING VALUE VALUE PERIOD* OCTOBER 1, 2004 MARCH 31, 2005 OCTOBER 1, 2004 - MARCH 31, 2005 ---------------------------------- -------------------- -------------------------- -------------------------- Actual $1,000.00 $1,018.80 $3.32 ---------------------------------- -------------------- -------------------------- -------------------------- Hypothetical $1,000.00 $1,021.64 $3.33 ---------------------------------- -------------------- -------------------------- --------------------------
* Expenses are equal to the Fund's annualized expense ratio of 0.66%, multiplied by the average account value over the period, multiplied by 182/365 (to reflect the one-half year period). 2 IRON MARKET OPPORTUNITY FUND SCHEDULE OF INVESTMENTS MARCH 31, 2005 (UNAUDITED) PRINCIPAL AMOUNT VALUE -------------- -------------- CORPORATE BONDS - 10.15% Bayerische Landesbank, Series YCD, 11.000%, 9/27/2011 (a) $ 1,000,000 $ 981,500 Boeing Capital Corp., 5.650%, 5/15/2006 49,000 49,878 General Motors Acceptance Corp., 6.750%, 1/15/2006 200,000 201,430 General Motors Acceptance Corp., 4.592%, 11/15/2010 (a) 250,000 225,785 General Motors Acceptance Corp., 4.692%, 6/15/2011 (a) 400,000 343,670 General Motors Acceptance Corp., 7.500%, 7/15/2005 100,000 100,809 Lehman Brothers Holding, 3.310%, 2/28/2007 (a) 2,000,000 1,998,620 Lehman Brothers Holding, 8.000%, 10/29/2019 (a) 1,000,000 974,750 I-Preferred Term Securities III, 5.980%, 11/05/2033 (a) 1,000,000 1,016,250 I-Preferred Term Securities XVI, 4.780%, 6/24/2034 (a) 3,000,000 3,000,000 I-Preferred Term Securities XVI, 5.040%, 12/11/2032 (a) 500,000 502,625 Preferred Term Securities XVI, 4.560%, 3/23/2035 (a) 1,000,000 1,000,000 Preferred Term Securities XVI, 5.610%, 3/23/2035 (a) 1,000,000 1,000,000 Preferred Term Securities XVII, 4.380%, 6/23/2035 (a) 1,000,000 1,000,000 Preferred Term Securities XVII, 3.480%, 6/23/2035 (a) 3,000,000 3,000,000 Preferred Term Securities XVII, 5.180%, 6/23/2035 (a) 3,000,000 3,000,000 Preferred Term Securities XVII, 3.780%, 6/23/2035 (a) 2,000,000 2,000,000 SLMA Corp., 4.000%, 7/25/2014 (a) 3,000,000 2,942,310 -------------- TOTAL CORPORATE BONDS (COST $23,502,644) 23,337,627 -------------- MORTGAGE BACKED BONDS - 3.79% FNMA, Series #2002-42, 5.500%, 1/25/2016 43,108 43,251 FNMA, Series #2003-91, 2.767%, 10/01/2034 (a) 1,000,000 1,014,994 First Horizon Mortgage Pass-Through Trust, 3.120%, 1/01/2035 (a) 4,602,483 4,599,675 First Horizon Mortgage Pass-Through Trust, 3.320%, 12/25/2035 (a) 2,048,186 2,048,186 GNMA, 5.00%, 1/20/2035 (a) 991,710 1,002,410 -------------- TOTAL MORTGAGE BACKED BONDS (COST $8,627,261) 8,708,516 -------------- GOVERNMENT AGENCY BONDS - 41.29% FEDERAL FARM CREDIT BANK - 0.13% FFCB, 4.000%, 5/12/2008 300,000 297,397 -------------- FEDERAL HOME LOAN BANK - 23.22% FHLB, 2.200%, 7/28/2006 250,000 244,768 FHLB, 2.250%, 9/24/2007 (a) 2,000,000 1,994,766 FHLB, 2.500%, 10/26/2007 (a) 2,000,000 1,988,238 FHLB, 3.000%, 10/28/2011 (a) 1,340,000 1,325,261 FHLB, 3.110%, 6/10/2018 (a) 2,000,000 1,999,860 FHLB, 3.200%, 1/25/2008 (a) 2,000,000 2,000,992 FHLB, 6.000%, 9/17/2014 (a) 1,900,000 1,892,685 FHLB, 3.000%, 11/25/2008 (a) 500,000 497,434 FHLB, 3.700%, 11/08/2019 (a) 5,000,000 4,947,745 FHLB, 6.000%, 12/17/2019 (a) 2,000,000 1,963,020 FHLB, 2.650%, 11/09/2005 1,000,000 995,359 FHLB, 3.680%, 8/24/2007 2,000,000 1,982,012 FHLB, 4.300%, 8/18/2008 (a) 2,000,000 1,995,520 FHLB, 2.000%, 8/04/2006 (a) 1,000,000 991,166 FHLB, 3.250%, 1/28/2007 (a) 1,000,000 994,348
See accompanying notes which are an integral part of the financial statements. 3 IRON MARKET OPPORTUNITY FUND SCHEDULE OF INVESTMENTS - CONTINUED MARCH 31, 2005 (UNAUDITED) GOVERNMENT AGENCY BONDS - 41.29% (CONTINUED) PRINCIPAL FEDERAL HOME LOAN BANK - 23.22% - CONTINUED AMOUNT VALUE -------------- -------------- FHLB, 3.030%, 2/03/2006 $ 5,000,000 $ 4,975,035 FHLB, 4.500%, 6/30/2008 500,000 500,465 FHLB, 2.100%, 12/29/2006 15,000 14,546 FHLB, 3.000%, 10/28/2009 (a) 490,000 486,817 FHLB, 2.000%, 4/15/2009 1,000,000 987,699 FHLB, 3.550%, 11/07/2007 680,000 670,859 FHLB, 3.000%, 6/12/2018 (a) 1,500,000 1,476,534 FHLB, 2.500%, 4/20/2009 (a) 1,000,000 992,387 FHLB, 3.500%, 12/17/2019 (a) 2,000,000 2,002,380 FHLB, 4.000%, 6/17/2008 1,000,000 992,218 FHLB, 2.900%, 9/01/2006 (a) 2,000,000 2,000,000 FHLB, 2.980%, 2/22/2007 (a) 5,000,000 5,000,000 FHLB, 2.750%, 2/06/2006 (a) 2,500,000 2,492,185 FHLB, 4.200%, 12/29/2014 (a) 5,000,000 5,005,600 -------------- 53,409,899 -------------- FEDERAL HOME LOAN MORTGAGE CORPORATION - 4.45% FHLMC, 2.125%, 12/14/2005 540,000 534,847 FHLMC, 4.375%, 7/30/2009 2,000,000 1,969,188 FHLMC, 3.250%, 1/25/2008 (a) 1,000,000 993,693 FHLMC, 3.1925%, 1/23/2009 (a) 75,000 75,012 FHLMC, 7.000%, 6/30/2014 15,000 15,389 FHLMC, 3.000%, 5/28/2008 (a) 2,160,000 2,135,750 FHLMC, 3.420%, 6/2/2009 (a) 1,000,000 1,000,003 FHLMC, 8.000%, 6/6/2017 500,000 503,841 FHLMC, 4.125%, 5/12/2005 (a) 3,000,000 2,996,460 -------------- 10,224,183 -------------- FEDERAL NATIONAL MORTGAGE ASSOCIATION - 13.49% FNMA, 2.500%, 2/12/2007 (a) 2,000,000 1,974,316 FNMA, 2.610%, 8/18/2006 150,000 147,487 FNMA, 3.000%, 7/26/2006 (a) 2,000,000 1,991,626 FNMA, 4.040%, 3/16/2009 1,405,000 1,385,433 FNMA, 3.010%, 12/29/2006 4,000,000 3,991,696 FNMA, 4.000%, 8/20/2008 422,000 417,577 FNMA, 4.000%, 9/30/2014 3,000,000 2,968,329 FNMA, 3.000%, 9/30/2009 (a) 3,000,000 2,984,214 FNMA, 5.500%, 7/18/2012 3,000,000 3,018,969 FNMA, 5.500%, 10/15/2013 250,000 247,305 FNMA, 4.000%, 2/03/2020 (a) 2,000,000 1,987,300 FNMA, 3.000%, 8/18/2006 3,000,000 2,965,308 FNMA, 2.000%, 4/28/2006 (a) 50,000 49,687 FNMA, 4.000%, 11/09/2009 5,000,000 4,901,805 FNMA, 3.000%, 8/10/2009 (a) 2,000,000 1,994,134 -------------- 31,025,186 -------------- TOTAL GOVERNMENT AGENCY BONDS (COST $95,518,346) 94,956,665 -------------- MUNICIPAL BONDS - 0.01% Jefferson Franklin College, 4.500%, 11/1/2009 25,000 24,877 -------------- TOTAL MUNICIPAL BONDS (COST $25,000) 24,877 --------------
See accompanying notes which are an integral part of the financial statements. 4 IRON MARKET OPPORTUNITY FUND SCHEDULE OF INVESTMENTS - CONTINUED MARCH 31, 2005 (UNAUDITED) PREFERRED SECURITIES - 9.90% SHARES VALUE -------------- -------------- Blackrock Preferred Opportunity Fund - Series T7 40 $ 1,000,000 Blackrock Preferred Opportunity Fund - Series R7 40 1,000,000 Calamos Convertible Opportunity, Inc. Fund - Series W 35 875,000 Calamos Convertible Opportunity, Inc. Fund - Series Th 40 1,000,000 Calamos Convertible Opportunity & Income, Inc. Fund - Series Th7 40 1,000,000 Calamos Convertible Opportunity, Inc. Fund - Series M 40 1,000,000 Calamos Convertible Opportunity, Inc. Fund - Series F 40 1,000,000 Cohen & Steers Reit & Preferred Income Fund Inc. - Series W 40 1,000,000 Cohen & Steers Reit & Preferred Income Fund Inc. - Series M 40 1,000,000 Cohen & Steers Advantage Income Realty Fund Inc.- Series Th 40 1,000,000 Cohen & Steers Advantage Income Realty Fund Inc. - Series W 40 1,000,000 Cohen & Steers Advantage Income Realty Fund Inc. - Series M7 40 1,000,000 Eaton Vance Limited Duration Income Fund - Series A 40 1,000,000 Eaton Vance Senior Floating Rate Trust - Series B 40 1,000,000 Eaton Vance Tax-Advantage Dividend Income Fund - Series Th7 40 1,000,000 Flaherty & Crumrine/Claymore Preferred Securities Income Fund - Series W7 40 1,000,000 Flaherty & Crumrine/Claymore Preferred Securities Income Fund - Series F7 40 1,000,000 ING Prime Rate Trust - Series F 40 1,000,000 ING Prime Rate Trust - Series W 40 1,000,000 John Hancock Preferred Income Fund II - Series Th 40 1,000,000 Neuberger Berman Realty Income Fund - Series D 36 900,000 Preferred Income Strategies Fund Inc. - Series Th7 40 1,000,000 Van Kampen Senior Income Trust - Series Th 40 1,000,000 -------------- TOTAL PREFERRED SECURITIES (COST $22,775,000) 22,775,000 -------------- MUTUAL FUNDS - 7.83% SHARES VALUE -------------- -------------- Eaton Vance Floating Rate Mutual Fund 145,976 1,446,620 Fidelity Floating Rate High Income Fund 100,000 997,003 Franklin Floating Rate Daily Access Fund 1,531,153 15,556,517 -------------- TOTAL MUTUAL FUNDS (COST $17,945,572) 18,000,140 -------------- PRINCIPAL AMOUNT -------------- COMMERCIAL PAPER - 26.89% Abbot Commercial Paper 4/01/2005 $ 10,000,000 10,000,000 Anheuser-Busch Commercial Paper 4/01/2005 10,000,000 10,000,000 BP Commercial Paper 4/01/2005 2,870,000 2,870,000 Lehman Commercial Paper 4/01/2005 10,000,000 10,000,000 Lockhart Commercial Paper 5/06/2005 9,000,000 8,975,217 Rabobank Commercial Paper 4/01/2005 10,000,000 10,000,000 USB Financial Commercial Paper 4/01/2005 10,000,000 10,000,000 -------------- TOTAL COMMERCIAL PAPER (COST $61,845,217) 61,845,217 -------------- MONEY MARKET SECURITIES - 0.00% First American Prime Obligations Fund, 1.970% (a) 11,223 11,223 -------------- TOTAL MONEY MARKET SECURITIES (COST $11,223) 11,223 -------------- TOTAL INVESTMENTS (COST $230,250,263) - 99.86% 229,659,265 -------------- OTHER ASSETS LESS LIABILITIES - 0.14% 332,731 -------------- TOTAL NET ASSETS - 100.00% $ 229,991,996 ==============
(a) Variable rate security; the coupon rate shown represents that rate at March 31, 2005. See accompanying notes which are an integral part of the financial statements. 5 IRON MARKET OPPORTUNITY FUND STATEMENT OF ASSETS AND LIABILITIES MARCH 31, 2005 (UNAUDITED) ASSETS Investments in securities, at value (cost $230,250,263) $ 229,659,265 Interest receivable 631,243 Receivable for fund shares sold 400,000 Dividends receivable 99,182 Prepaid expenses 36,884 Other receivables 8,990 ----------------- TOTAL ASSETS 230,835,564 ----------------- LIABILITIES Payable for fund shares redeemed 722,532 Payable to adviser 95,044 Payable to affiliates 14,908 Accrued expenses and other liabilities 11,084 ----------------- TOTAL LIABILITIES 843,568 ----------------- NET ASSETS $ 229,991,996 ================= NET ASSETS CONSIST OF: Paid in capital $ 230,426,709 Accumulated undistributed net investment income 84,045 Accumulated net realized gain from investment transactions 72,240 Net unrealized (depreciation) on investments (590,998) ----------------- NET ASSETS $ 229,991,996 ================= SHARES OUTSTANDING (unlimited number of shares authorized) 23,119,282 ----------------- Net Asset Value, Offering and redemption price per share $ 9.95 =================
See accompanying notes which are an integral part of the financial statements. 6 IRON MARKET OPPORTUNITY FUND STATEMENT OF OPERATIONS FOR THE SIX MONTHS ENDED MARCH 31, 2005 (UNAUDITED) INVESTMENT INCOME Dividend income $ 769,372 Interest income 2,249,108 -------------- TOTAL INCOME 3,018,480 -------------- EXPENSES Investment adviser fee 906,142 Administration expenses 59,587 Fund accounting expenses 34,664 Custodian expenses 17,508 Transfer agent expenses 9,074 Auditing expenses 7,480 Legal expenses 4,273 Insurance expenses 4,017 Miscellaneous expenses 2,921 Pricing expenses 2,208 Chief compliance officer expense 2,162 Trustee expenses 1,663 Registration expenses 1,613 Printing expenses 515 -------------- TOTAL EXPENSES 1,053,827 Waived fees (a) (453,071) -------------- Net operating expenses 600,756 -------------- NET INVESTMENT INCOME 2,417,724 -------------- REALIZED & UNREALIZED GAIN (LOSS) Net realized gain on investment securities 621,658 Change in net unrealized appreciation (depreciation) on investment securities 66,150 -------------- Net realized and unrealized gain on investment securities 687,808 -------------- NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $ 3,105,532 ==============
(a) See note 3 to the financial statements. See accompanying notes which are an integral part of the financial statements. 7 IRON MARKET OPPORTUNITY FUND STATEMENTS OF CHANGES IN NET ASSETS SIX MONTHS ENDED MARCH 31, 2005 YEAR ENDED (UNAUDITED) SEPTEMBER 30, 2004 --------------------- --------------------------- OPERATIONS Net investment income $ 2,417,724 $ 2,905,474 Net realized gain on investment securities 621,658 736,117 Change in net unrealized appreciation (depreciation) 66,150 (688,575) --------------------- --------------------------- Net increase in net assets resulting from operations 3,105,532 2,953,016 --------------------- --------------------------- DISTRIBUTIONS From net investment income (2,376,188) (2,887,782) From net realized gain - (748,902) --------------------- --------------------------- Total distributions (2,376,188) (3,636,684) --------------------- --------------------------- CAPITAL SHARE TRANSACTIONS Proceeds from shares sold 154,085,302 192,387,048 Reinvestment of distributions 1,877,958 2,799,670 Amount paid for shares repurchased (74,769,237) (124,002,439) --------------------- --------------------------- Net increase in net assets resulting from capital share transactions 81,194,023 71,184,279 --------------------- --------------------------- TOTAL INCREASE IN NET ASSETS 81,923,367 70,500,611 --------------------- --------------------------- NET ASSETS Beginning of period 148,068,629 77,568,018 --------------------- --------------------------- End of period $ 229,991,996 $ 148,068,629 ===================== =========================== Accumulated undistributed net investment income $ 84,045 $ 42,510 --------------------- --------------------------- CAPITAL SHARE TRANSACTIONS Shares sold 15,440,650 19,423,908 Shares issued in reinvestment of distributions 188,741 281,830 Shares repurchased (7,499,128) (12,511,424) --------------------- --------------------------- Net increase from capital share transactions 8,130,263 7,194,314 ===================== ===========================
See accompanying notes which are an integral part of the financial statements. 8 IRON MARKET OPPORTUNITY FUND FINANCIAL HIGHLIGHTS FOR A SHARE OUTSTANDING DURING THE PERIOD PERIOD ENDED FOR THE MARCH 31, 2005 YEAR ENDED YEAR ENDED PERIOD ENDED (UNAUDITED) SEPTEMBER 30, 2004 SEPTEMBER 30, 2003 SEPTEMBER 30, 2002 (a) ---------------- --------------------- --------------------- --------------------- SELECTED PER SHARE DATA Net asset value, beginning of period $ 9.88 $ 9.95 $ 9.75 $ 10.00 ---------------- --------------------- --------------------- --------------------- Income from investment operations Net investment income 0.12 0.28 0.28 0.38 Net realized and unrealized gain (loss) 0.07 0.02 0.20 (0.29) ---------------- --------------------- --------------------- --------------------- Total from investment operations 0.19 0.30 0.48 0.09 ---------------- --------------------- --------------------- --------------------- LESS DISTRIBUTIONS TO SHAREHOLDERS: From net investment income (0.12) (0.28) (0.28) (0.34) From net realized gain - (0.09) - - ---------------- --------------------- --------------------- --------------------- Total distributions (0.12) (0.37) (0.28) (0.34) ---------------- --------------------- --------------------- --------------------- Net asset value, end of period $ 9.95 $ 9.88 $ 9.95 $ 9.75 ================ ===================== ===================== ===================== TOTAL RETURN (b) 1.88% (c) 3.12% 4.95% 0.90% (c) RATIOS AND SUPPLEMENTAL DATA Net assets, end of period (000) $ 229,992 $ 148,069 $ 77,568 $ 26,358 Ratio of expenses to average net assets 0.66% (d) 0.72% 0.90% 1.45% (d) Ratio of expenses to average net assets before waiver & reimbursement 1.16% (d) 1.22% 1.33% 1.45% (d) Ratio of net investment income to average net assets 2.66% (d) 2.99% 3.10% 3.94% (d) Ratio of net investment income to average net assets before waiver 2.16% (d) 2.49% 2.67% 3.94% (d) Portfolio turnover rate 92.04% 59.05% 92.97% 626.51%
(a) For the period October 11, 2001 (commencement of operations) to September 30, 2002. (b) Total return in the above table represents the rate that the investor would have earned or lost on an investment in the Fund, assuming reinvestment of dividends. (c) Not annualized. (d) Annualized. See accompanying notes which are an integral part of the financial statements. 9 IRON MARKET OPPORTUNITY FUND NOTES TO THE FINANCIAL STATEMENTS MARCH 31, 2005 (UNAUDITED) NOTE 1. ORGANIZATION The Iron Market Opportunity Fund (the "Fund") was organized as a diversified series of AmeriPrime Advisors Trust (the "Trust") on July 1, 2001 and commenced operations October 11, 2001. 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 of the Trust (the "Board") to issue an unlimited number of shares of beneficial interest of separate series. The Fund is one of a series of funds currently offered by the Trust. The Fund's investment objective is to maximize total return while maintaining low volatility in share price. The Fund invests primarily in a broad range of fixed income securities (including investments, which may be extensive, in other mutual funds that invest primarily in fixed income securities). The investment adviser to the Fund is Iron Financial Management, Inc. (the "Adviser"). NOTE 2. SIGNIFICANT ACCOUNTING POLICIES The following is a summary of significant accounting policies followed by the Fund in the preparation of its financial statements. Securities Valuations - Equity securities generally are valued by using market quotations, but may be valued on the basis of prices furnished by a pricing service when the Adviser believes such prices accurately reflect the fair market value of such securities. Securities that are traded on any stock exchange are generally valued by the pricing service at the last quoted sale price. Lacking a last sale price, an exchange traded security is generally valued by the pricing service at its last bid price. Securities traded in the NASDAQ over-the-counter market are generally valued by the pricing service at the NASDAQ Official Closing Price. When market quotations are not readily available, when the Adviser determines that the market quotation or the price provided by the pricing service does not accurately reflect the current market value or when restricted or illiquid securities are being valued, such securities are valued as determined in good faith by the Adviser, in conformity with guidelines adopted by and subject to review of the Board. Fixed income securities generally are valued by using market quotations, but may be valued on the basis of prices furnished by a pricing service when the 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 Adviser decides that a price provided by the pricing service does not accurately reflect the fair market value of the securities, when prices are not readily available from a pricing service, or when restricted or illiquid securities are being valued, securities are valued at fair value as determined in good faith by the Adviser, subject to review of the Board of Trustees. Short term investments in fixed income securities with maturities of less than 60 days when acquired, or which subsequently are within 60 days of maturity, are valued by using the amortized cost method of valuation, which the Board has determined will represent fair value. Federal Income Taxes - There is no provision for federal income tax. Each Fund intends to continue to qualify each year as a "regulated investment company" under Subchapter M of the Internal Revenue Code of 1986, as amended, by distributing all of its taxable income. If the required amount of net investment income is not distributed, the Fund could incur a tax expense. Security Transactions and Related Income - The Fund follows industry practice and records security transactions on the trade date. The specific identification method is used for determining gains or losses for financial statements and income tax purposes. Dividend income is recorded on the ex-dividend date and interest income is recorded on an accrual basis. Discounts and premiums on securities purchased are amortized over the life of the respective securities. 10 IRON MARKET OPPORTUNITY FUND NOTES TO THE FINANCIAL STATEMENTS MARCH 31, 2005 - CONTINUED (UNAUDITED) NOTE 2. SIGNIFICANT ACCOUNTING POLICIES - CONTINUED Distributions to Shareholders - The Fund intends to distribute all of its net investment income, if any, as dividends to shareholders on an annual basis. The Fund intends to distribute its net realized long-term capital gains and net realized short-term capital gains, if any, at least once a year. Distributions to shareholders, which are determined in accordance with income tax regulations, are recorded on the ex-dividend date. NOTE 3. FEES AND OTHER TRANSACTIONS WITH AFFILIATES Under the terms of the management agreement, (the "Agreement"), the Adviser manages the Fund's investments subject to approval of the Board. As compensation for its management services, the Fund is obligated to pay the Adviser a fee computed and accrued daily and paid monthly at an annual rate of 1.00% of the average daily net assets of the Fund. Effective October 1, 2003, the Adviser has contractually agreed to waive one-half of its management fees through January 31, 2006. For the six months ended March 31, 2005, the Adviser earned fees, before the waiver, totaling, $906,142 and after the waiver, of $453,071. At March 31, 2005, the Fund owed the Advisor $95,044. The Trust retains Unified Fund Services, Inc. ("Unified"), a wholly owned subsidiary of Unified Financial Services, Inc., to manage the Fund's business affairs and provide the Fund with administrative services, including all regulatory reporting and necessary office equipment and personnel. Unified receives a monthly fee from the Fund equal to an annual rate of 0.10% of the Fund's assets up to $50 million, 0.07% of the Fund's assets from $50 million to $100 million, and 0.05% of the Fund's assets over $100 million (subject to a minimum fee of $2,500 per month). For the six months ended March 31, 2005, Unified earned fees of $59,587 for administrative services provided to the Fund. A trustee and the officers of the Trust are members of management and/or employees of Unified and/or shareholders of Unified Financial Services, Inc. (the parent of Unified). The Trust retains Unified to act as the Fund's transfer agent and to provide fund accounting services. For its services as transfer agent, Unified receives a monthly fee from the Fund of $1.25 per shareholder (subject to a minimum monthly fee of $1,250). For the six months ended March 31, 2005, Unified earned fees of $7,693 from the Fund for transfer agent services provided to the Fund and was reimbursed for $1,381 of out-of-pocket expenses incurred in providing transfer agent services to the Fund. For its services as fund accountant, Unified receives an annual fee from the Fund equal to 0.05% of the Fund's assets up to $50 million, 0.04% of the Fund's assets from $50 million to $100 million, and 0.03% of the Fund's assets over $100 million (subject to various monthly minimum fees, the maximum being $1,667 per month for assets of $10 million or more). For the six months ended March 31, 2005, Unified earned fees of $34,664 from the Fund for fund accounting services provided to the Fund. Unified Financial Securities, Inc. (the "Distributor") acts as the principal distributor of the Fund's shares. The Fund has adopted a plan, pursuant to Rule 12b-1 under the Investment Company Act of 1940 that permits the Fund to pay certain distribution and promotion expenses related to marketing shares of the Fund; however the plan has not been activated. As a result there were no 12b-1 payments made to the Distributor for the six months ended March 31, 2005. A Trustee has an ownership interest in Unified Financial Services, Inc. (the parent company of the Distributor), and certain officers of the Trust are a director and/or officers of the Distributor and/or shareholders of Unified Financial Services, Inc. As a result, those persons may be deemed to be affiliates of the Distributor. 11 IRON MARKET OPPORTUNITY FUND NOTES TO THE FINANCIAL STATEMENTS MARCH 31, 2005 - CONTINUED (UNAUDITED) NOTE 4. INVESTMENTS For the six months ended March 31, 2005, purchases and sales of investment securities, other than short-term investments and short-term U.S. government obligations, were as follows: PURCHASES U.S. Government Obligations $ 68,123,422 Other 75,632,725 SALES U.S. Government Obligations $ 21,828,460 Other 99,185,088 As of March 31, 2005, the net unrealized (depreciation) of investments for tax purposes was as follows: Gross appreciation $ 210,076 Gross depreciation (801,074) ------------------- Net (depreciation) on investments $ (590,998) =================== At March 31, 2005, the aggregate cost of securities for federal income tax purposes was $230,250,263. NOTE 5. ESTIMATES The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of increases and decreases in net assets from operations during the reporting period. Actual results could differ from those estimates. NOTE 6. BENEFICIAL OWNERSHIP The beneficial ownership, either directly or indirectly, of more than 25% of the voting securities of a fund creates a presumption of control of the fund, under Section 2(a)(9) of the Investment Company Act of 1940. As of March 31, 2005, Fabco & Co. owned 69.59% of the Fund, for the benefit of others. NOTE 7. DISTRIBUTIONS TO SHAREHOLDERS The tax character of distributions paid during fiscal years 2004 and 2003 was as follows: 2004 2003 ---- ---- Distributions paid from Ordinary Income $ 2,887,782 $ 1,728,542 Short-term Capital Gain 590,189 - Long-term Capital Gain 158,713 - ----------------- ----------------- $ 3,636,684 $ 1,728,542 ================= ================= 12 IRON MARKET OPPORTUNITY FUND NOTES TO THE FINANCIAL STATEMENTS MARCH 31, 2005 - CONTINUED (UNAUDITED) NOTE 7. DISTRIBUTIONS TO SHAREHOLDERS - CONTINUED For the fiscal year ended September 30, 2004 and the six months ended March 31, 2005, the Fund paid quarterly distributions of net investment income totaling $0.2804 and $0.1156 per share, respectively. Capital gain distributions in the amount of $0.0939 per share were paid December 30, 2003, to shareholders of record on December 29, 2003. The Fund did not make any capital gain distributions for the six months ended March 31, 2005. As of September 30, 2004, the components of distributable earnings (accumulated losses) on a tax basis were as follows: Undistributed ordinary income/(accumulated losses) $ 42,510 Undistributed long-term capital gain/(accumulated losses) (547,490) Unrealized appreciation/(depreciation) (659,077) --------------- $ (1,164,057) =============== The difference between book basis and tax basis unrealized depreciation is attributable primarily to the tax deferral of losses on wash sales. 13 The Fund's Statement of Additional Information ("SAI") includes information about the trustees and is available, without charge, upon request. You may call toll-free (877) 322-0575 to request a copy of the SAI or to make shareholder inquiries. PROXY VOTING A description of the policies and procedures that the Fund uses to determine how to vote proxies relating to portfolio securities and information regarding how the Fund voted those proxies during the 12-month period ended June 30, 2004 are available without charge, upon request: (1) by calling the Fund at (877) 322-0575; and (2) on the Commission's website at www.sec.gov. TRUSTEES Stephen A. Little, Chairman Gary E. Hippenstiel Daniel J. Condon Ronald C. Tritschler OFFICERS Anthony J. Ghoston, President Thomas G. Napurano, Chief Financial Officer and Treasurer Freddie Jacobs, Jr., Secretary Lynn E. Wood, Chief Compliance Officer INVESTMENT ADVISER Iron Financial Two Northfield Plaza Suite 250 Northfield, IL 60093 DISTRIBUTOR Unified Financial Securities, Inc. 431 N. Pennsylvania St. Indianapolis, IN 46204 INDEPENDENT ACCOUNTANTS Cohen McCurdy, Ltd. 826 Westpoint Parkway, Suite 1250 Westlake, OH 44145 LEGAL COUNSEL Thompson Hine LLP 312 Walnut St., Suite 1400 Cincinnati, OH 45202 CUSTODIAN U.S. Bank, N.A. 425 Walnut St. Cincinnati, OH 45202 ADMINISTRATOR, TRANSFER AGENT AND FUND ACCOUNTANT Unified Fund Services, Inc. 431 N. Pennsylvania St. Indianapolis, IN 46204 This report is intended only for the information of shareholders or those who have received the Fund's prospectus which contains information about the Fund's management fee and expenses. Please read the prospectus carefully before investing. Distributed by Unified Financial Securities, Inc. Member NASD/SIPC 14 ITEM 2. CODE OF ETHICS. Not Applicable ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT. Not Applicable ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES. Not Applicable ITEM 5. AUDIT COMMITTEE OF LISTED COMPANIES. Not Applicable ITEM 6. SCHEDULE OF INVESTMENTS. Not Applicable - schedule filed with Item 1. ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END FUNDS. Not Applicable. ITEM 8. PURCHASES OF EQUITY SECURITIES BY CLOSED-END FUNDS. Not Applicable. ITEM 9. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS. THE REGISTRANT HAS NOT ADOPTED PROCEDURES BY WHICH SHAREHOLDERS MAY RECOMMEND NOMINEES TO THE REGISTRANT'S BOARD OF TRUSTEES [DIRECTORS]. ITEM 10. CONTROLS AND PROCEDURES. (a) Based on an evaluation of the registrant's disclosure controls and procedures as of March 24, 2005, the disclosure controls and procedures are reasonably designed to ensure that the information required in filings on Forms N-CSR is recorded, processed, summarized, and reported on a timely basis. (b) There were no significant changes in the registrant's internal control over financial reporting that occurred during the registrant's last fiscal half-year that have materially affected, or are reasonably likely to materially affect, the registrant's internal control over financial reporting. ITEM 11. EXHIBITS. (a)(1) Not Applicable (a)(2) Certifications by the registrant's principal executive officer and principal financial officer, pursuant to Section 302 of the Sarbanes- Oxley Act of 2002 and required by Rule 30a-2under the Investment Company Act of 1940 are filed herewith. (a)(3) Not Applicable (b) Certification pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 is filed herewith. 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 Advisors Trust ----------------------------------------------------- By * /s/ Anthony Ghoston ---------------------------------------------------------------- Anthony Ghoston, President Date 6/2/05 ------------------------------------------------------------ Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated. By * /s/ Anthony Ghoston ---------------------------------------------------------------- Anthony Ghoston, President Date 6/2/05 ------------------------------------------------------------ By * /s/ Thomas Napurano --------------------------------------------------------------- Thomas Napurano, Chief Financial Officer and Treasurer Date 6/1/05 ------------------------------------------------------------