AmeriPrime Funds
CROSS REFERENCE SHEET
FORM N-1A
FOR AIT VISION U.S. EQUITY PORTFOLIO
ITEM SECTION IN EACH PROSPECTUS
1.............................. Cover Page
2.............................. Summary of Fund Expenses, Supplement to
Prospectus
3.............................. Supplement to Prospectus
4.............................. The Fund, Investment Objective and
Strategies, Investment Policies and
Techniques and Risk Considerations,
Operation of the Fund, General
Information
5.............................. Operation of the Fund, Supplement to
Prospectus
5A............................. None
6.............................. Cover Page, Dividends and
Distributions, Taxes, Operation of
the Fund, General Information,
Supplement to Prospectus
7.............................. Cover Page, How to Invest in the
Fund, Share Price Calculation,
Operation of the Fund, Supplement to
Prospectus
8.............................. How to Redeem Shares
9.............................. None
13.............................. General Information
15.............................. General Information
SECTION IN STATEMENT OF
ITEM ADDITIONAL INFORMATION
10.............................. Cover Page
11.............................. Table of Contents
12.............................. None
13.............................. Additional Information About Fund
Investments and Risk Considerations,
Investment Limitations
14.............................. Trustees and Officers
15.............................. Description of the Trust
16.............................. The Investment Adviser, Custodian,
Transfer Agent, Accountants
17.............................. Portfolio Transactions and Brokerage
18.............................. Description of the Trust
19.............................. Determination of Share Price
20.............................. None
21.............................. Distributor
22.............................. Investment Performance
23.............................. None
<PAGE>
October 29, 1996
AIT VISION U.S. EQUITY PORTFOLIO
Supplement to Prospectus
Dated November 6, 1995
Effective October 29, 1996, a majority of the shareholders of AIT Vision
U.S.Equity Portfolio (the "Fund") approved the selection of Advanced Investment
Technology, Inc. ("AIT") as the new investment adviser to the Fund. The
portfolio managers of the Fund, Douglas W. Case and Dean S. Barr, are now
portfolio managers with AIT and remain responsible for the day-to-day management
of the Fund. The Fund is a series of AmeriPrime Funds (the "Trust"). The Trust
has approved a new management agreement with AIT under which the Fund is
authorized to pay AIT a management fee equal to an annual average rate of 0.70%
of its average daily net assets. This is a reduction from the 1.47% paid under
the previous management agreement. The Trust also authorized the elimination of
the Fund's sales load. In addition to the above, the Prospectus is revised as
described below.
Summary of Fund Expenses
The section on page 2 of the Prospectus titled "Summary of Fund Expenses"
describes a management fee of 1.47% and a 4% sales load. As a result of the
reduced management fee and elimination of the sales load, total annual fund
operating expenses on a going forward basis are expected to equal 0.70% of the
Fund's average daily net assets.
How to Invest in the Fund
The portions of the Prospectus under the section titled "How to Invest in
the Fund" beginning on page 3 of the Prospectus which describe the sales load
and open account program are no longer applicable. With the elimination of the
sales load, all purchases will be made at net asset value. Initial purchases
should be mailed to the Fund's transfer agent, and subsequent purchases should
be mailed to the Fund's custodian, at the addresses listed on page 14 of the
Prospectus. The instructions for wire purchases found on page 5 of the
Prospectus may now be used for initial and subsequent purchases.
<PAGE>
Operation of the Fund
The second paragraph under "Operation of the Fund" on page 9 of the
Prospectus is revised to read as follows:
The Fund retains Advanced Investment Technology, Inc., 311 Park
Place Blvd., Clearwater, Florida 34619 (the "Adviser") to manage the
Fund's investments. The Adviser develops and uses advanced computational
quantitative techniques for money management. In addition to offering
tactical overlay services to private individuals and institutions, the
Adviser manages private investor and institutional funds in global asset
allocation and individually managed accounts (equity). Douglas W. Case,
CFA, Director of Equity Portfolio Management, and Dean S. Barr, Chairman
and Chief Investment Officer, are primarily responsible for the day-to-day
management of the Fund's portfolio. Mr. Case is the portfolio manager for
the Adviser's managed U.S. equity accounts. From 1994 to 1996, he was the
Director of Equity Portfolio Management of LBS Capital Management, Inc.
("LBS"). He previously worked with the Florida Retirement System, where he
oversaw all internal quantitatively driven portfolios and assisted in the
risk analysis of the aggregate domestic equity fund. Mr. Barr founded the
Adviser in 1996, is the controlling shareholder, and oversees portfolio
management of all of the Adviser's programs. From 1989 to 1996, he was the
Managing Director and Chief Investment Officer of LBS. He is an authority
and expert in the development of artificial intelligence systems for
market and security analysis. Additionally, he is the author of several
technical papers on Artificial Intelligence. The Adviser is a newly formed
organization and has no experience in managing investment companies;
however, Mr. Case and Mr. Barr, in their capacities at LBS, have
investment company management experience. The Fund is authorized to pay
the Adviser a fee equal to an annual average rate of 0.70% of its average
daily net assets. The Adviser pays all of the operating expenses of the
Fund except brokerage, taxes, interest, fees and expenses on
non-interested person trustees and extraordinary expenses.
This supplement, the supplement dated June 28, 1996 and the Prospectus
dated November 6, 1995 provide the information a prospective investor ought to
know before investing and should be retained for future reference. A Statement
of Additional Information has been filed with the Security and Exchange
Commission dated October 29, 1996, which is incorporated herein by reference and
can be obtained without charge by calling the Fund at 1-800-507-9922.
<PAGE>
AIT VISION U.S. EQUITY PORTFOLIO
STATEMENT OF ADDITIONAL INFORMATION
OCTOBER 29, 1996
This Statement of Additional Information is not a prospectus. It should
be read in conjunction with the Prospectus of AIT Vision U.S. Equity Portfolio
dated January 29, 1996, and the supplements dated June 28, 1996 and October 29,
1996. A copy of the Prospectus can be obtained by writing the Transfer Agent at
24 W. Carver Street, Huntington, New York 11743, or by calling 1-800-507-9922.
<PAGE>
STATEMENT OF ADDITIONAL INFORMATION
TABLE OF CONTENTS
PAGE
DESCRIPTION OF THE TRUST. . . . . . . . . . . . . . . . . . . . . . . . . 1
ADDITIONAL INFORMATION ABOUT FUND INVESTMENTS AND RISK
CONSIDERATIONS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
INVESTMENT LIMITATIONS. . . . . . . . . . . . . . . . . . . . . . . . . . 2
THE INVESTMENT ADVISER. . . . . . . . . . . . . . . . . . . . . . . . . . 5
TRUSTEES AND OFFICERS . . . . . . . . . . . . . . . . . . . . . . . . . . 6
PORTFOLIO TRANSACTIONS AND BROKERAGE. . . . . . . . . . . . . . . . . . . 7
DETERMINATION OF SHARE PRICE. . . . . . . . . . . . . . . . . . . . . . . 8
INVESTMENT PERFORMANCE. . . . . . . . . . . . . . . . . . . . . . . . . . 8
CUSTODIAN . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9
TRANSFER AGENT. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9
ACCOUNTANTS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9
DISTRIBUTOR . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9
<PAGE>
DESCRIPTION OF THE TRUST
AIT Vision U.S. Equity Portfolio (the "Fund") was organized as a series
of AmeriPrime Funds (the "Trust"). The Trust is an open-end investment company
established under the laws of Ohio by an Agreement and Declaration of Trust
dated August 8, 1995 (the "Trust Agreement"). The Trust Agreement permits the
Trustees to issue an unlimited number of shares of beneficial interest of
separate series without par value. The Fund is one of a series of funds
currently authorized by the Trustees.
Each share of a series represents an equal proportionate interest in
the assets and liabilities belonging to that series with each other share of
that series and is entitled to such dividends and distributions out of income
belonging to the series as are declared by the Trustees. The shares do not have
cumulative voting rights or any preemptive or conversion rights, and the
Trustees have the authority from time to time to divide or combine the shares of
any series into a greater or lesser number of shares of that series so long as
the proportionate beneficial interest in the assets belonging to that series and
the rights of shares of any other series are in no way affected. In case of any
liquidation of a series, the holders of shares of the series being liquidated
will be entitled to receive as a class a distribution out of the assets, net of
the liabilities, belonging to that series. Expenses attributable to any series
are borne by that series. Any general expenses of the Trust not readily
identifiable as belonging to a particular series are allocated by or under the
direction of the Trustees in such manner as the Trustees determine to be fair
and equitable. No shareholder is liable to further calls or to assessment by the
Trust without his or her express consent.
As of May 31, 1996, the following persons may be deemed to beneficially
own five percent (5%) or more of the Fund: AmeriPrime Financial Securities,
Inc., 1793 Kingswood Drive, Suite 200, Southlake, Texas - 5.02%; Blanche W.
Dupree Trust, 719 Central Park Blvd., Port Orange, Florida - 9.85%; LBS Capital
Management, Inc., 311 Park Place Blvd., Clearwater, Florida - 66.71%.
As of May 31, 1996, LBS Capital Management, Inc. may be deemed to
control the Fund as a result of its beneficial ownership of shares of the Fund.
As of May 31, 1996, the officers and trustees as a group may be deemed to
beneficially own 5.02% of the Fund.
For information concerning the purchase and redemption of shares of the
Fund, see "How to Invest in the Fund" and "How to Redeem Shares" in the Fund's
Prospectus. For a description of the methods used to determine the share price
and value of the Fund's assets, see "Share Price Calculation" in the Fund's
Prospectus.
ADDITIONAL INFORMATION ABOUT FUND INVESTMENTS AND RISK
CONSIDERATIONS
This section contains a more detailed discussion of some of the
investments the Fund may make and some of the techniques it may use, as
described in the Prospectus (see "Investment Objectives and Strategies" and
"Investment Policies and Techniques and Risk Considerations").
American Depository Receipts. American Depository Receipts are
dollar-denominated receipts that are generally issued in registered form by
domestic banks, and represent the deposit with the bank of a security of a
foreign issuer. To the extent that the Fund invests in foreign securities, such
investments may be subject to special risks. For example, there may be less
information publicly available about a foreign company than about a U.S.
company, and foreign
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<PAGE>
companies are not generally subject to accounting, auditing and financial
reporting standards and practices comparable to those in the U.S. Other risks
associated with investments in foreign securities include changes in
restrictions on foreign currency transactions and rates of exchanges, changes in
the administrations or economic and monetary policies of foreign governments,
the imposition of exchange control regulations, the possibility of expropriation
decrees and other adverse foreign governmental action, the imposition of foreign
taxes, less liquid markets, less government supervision of exchanges, brokers
and issuers, difficulty in enforcing contractual obligations, delays in
settlement of securities transactions and greater price volatility. In addition,
investing in foreign securities will generally result in higher commissions than
investing in similar domestic securities.
Convertible Debentures. The Adviser considers convertible debentures
rated A or higher by Standard & Poor's Corporation ("S&P") or by Moody's
Investors Services, Inc. ("Moody's") to be of investment grade quality.
Investment grade securities generally have adequate to strong protection of
principal and interest payments. Convertible debentures rated A possess many
favorable investment attributes and are considered to be upper-medium grade
obligations. Securities rated A may be more susceptible to the adverse effects
of changes in circumstances and economic conditions (changes that increase long
term risk) than higher rated securities.
Short Sales. The Fund may sell a security short in anticipation of a
decline in the market value of the security. When the Fund engages in a short
sale, it sells a security which it does not own. To complete the transaction,
the Fund must borrow the security in order to deliver it to the buyer. The Fund
must replace the borrowed security by purchasing it at the market price at the
time of replacement, which may be more or less than the price at which the Fund
sold the security. The Fund will incur a loss as a result of the short sale if
the price of the security increases between the date of the short sale and the
date on which the Fund replaces the borrowed security. The Fund will realize a
profit if the security declines in price between those dates.
INVESTMENT LIMITATIONS
Fundamental. The investment limitations described below have been
adopted by the Trust with respect to the Fund and are fundamental
("Fundamental"), i.e., they may not be changed without the affirmative vote of a
majority of the outstanding shares of the Fund. As used in the Prospectus and
this Statement of Additional Information, the term "majority" of the outstanding
shares of the Fund means the lesser of (1) 67% or more of the outstanding shares
of the Fund present at a meeting, if the holders of more than 50% of the
outstanding shares of the Fund are present or represented at such meeting; or
(2) more than 50% of the outstanding shares of the Fund. Other investment
practices which may be changed by the Board of Trustees without the approval of
shareholders to the extent permitted by applicable law, regulation or regulatory
policy are considered non-fundamental ("Non-Fundamental").
1. Borrowing Money. The Fund will not borrow money, except (a) from a
bank, provided that immediately after such borrowing there is an asset coverage
of 300% for all borrowings of the Fund; or (b) from a bank or other persons for
temporary purposes only, provided that such temporary borrowings are in an
amount not exceeding 5% of the Fund's total assets at the time when the
borrowing is made. This limitation does not preclude the Fund from entering into
reverse repurchase transactions, provided that the Fund has an asset coverage of
300% for all
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<PAGE>
borrowings and repurchase commitments of the Fund pursuant to reverse
repurchase transactions.
2. Senior Securities. The Fund will not issue senior securities. This
limitation is not applicable to activities that may be deemed to involve the
issuance or sale of a senior security by the Fund, provided that the Fund's
engagement in such activities is (a) consistent with or permitted by the
Investment Company Act of 1940, as amended, the rules and regulations
promulgated thereunder or interpretations of the Securities and Exchange
Commission or its staff and (b) as described in the Prospectus and this
Statement of Additional Information.
3. Underwriting. The Fund will not act as underwriter of securities
issued by other persons. This limitation is not applicable to the extent that,
in connection with the disposition of portfolio securities (including restricted
securities), the Fund may be deemed an underwriter under certain federal
securities laws.
4. Real Estate. The Fund will not purchase or sell real estate. This
limitation is not applicable to investments in marketable securities which are
secured by or represent interests in real estate. This limitation does not
preclude the Fund from investing in mortgage-related securities or investing in
companies engaged in the real estate business or that have a significant portion
of their assets in real estate (including real estate investment trusts).
5. Commodities. The Fund will not purchase or sell commodities unless
acquired as a result of ownership of securities or other investments. This
limitation does not preclude the Fund from purchasing or selling options or
futures contracts, from investing in securities or other instruments backed by
commodities or from investing in companies which are engaged in a commodities
business or have a significant portion of their assets in commodities.
6. Loans. The Fund will not make loans to other persons, except (a) by
loaning portfolio securities, (b) by engaging in repurchase agreements, or (c)
by purchasing nonpublicly offered debt securities. For purposes of this
limitation, the term "loans" shall not include the purchase of a portion of an
issue of publicly distributed bonds, debentures or other securities.
7. Concentration. The Fund will not invest 25% or more of its total
assets in a particular industry. This limitation is not applicable to
investments in obligations issued or guaranteed by the U.S. government, its
agencies and instrumentalities or repurchase agreements with respect thereto.
With respect to the percentages adopted by the Trust as maximum
limitations on its investment policies and limitations, an excess above the
fixed percentage will not be a violation of the policy or limitation unless the
excess results immediately and directly from the acquisition of any security or
the action taken. This paragraph does not apply to the borrowing policy set
forth in paragraph 1 above.
Notwithstanding any of the foregoing limitations, any investment
company, whether organized as a trust, association or corporation, or a personal
holding company, may be merged or consolidated with or acquired by the Trust,
provided that if such merger, consolidation or acquisition results in an
investment in the securities of any issuer prohibited by said paragraphs, the
Trust shall, within ninety days after the consummation of such merger,
consolidation or acquisition, dispose of all of the securities of such issuer so
acquired or such portion thereof as shall bring the total investment therein
within the limitations imposed by said paragraphs above as of the date of
consummation.
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<PAGE>
Non-Fundamental. The following limitations have been adopted by the
Trust with respect to the Fund and are Non-Fundamental (see "Investment
Restrictions" above).
i. Pledging. The Fund will not mortgage, pledge, hypothecate or in any
manner transfer, as security for indebtedness, any assets of the Fund except as
may be necessary in connection with borrowings described in limitation (1)
above. Margin deposits, security interests, liens and collateral arrangements
with respect to transactions involving options, futures contracts, short sales
and other permitted investments and techniques are not deemed to be a mortgage,
pledge or hypothecation of assets for purposes of this limitation.
ii. Borrowing. The Fund will not purchase any security while
borrowings (including reverse repurchase agreements) representing more than 5%
of its total assets are outstanding. The Fund will not enter into reverse
repurchase agreements.
iii. Margin Purchases. The Fund will not purchase securities or
evidences of interest thereon on "margin." This limitation is not applicable to
short term credit obtained by the Fund for the clearance of purchases and sales
or redemption of securities, or to arrangements with respect to transactions
involving options, futures contracts, short sales and other permitted
investments and techniques.
iv. Short Sales. The Fund will not effect short sales of securities
unless it owns or has the right to obtain securities equivalent in kind and
amount to the securities sold short.
v. Options. The Fund will not purchase or sell puts, calls, options
or straddles, except as described in the Prospectus and this Statement of
Additional Information.
vi. Illiquid Investments. The Fund will not invest in securities for
which there are legal or contractual restrictions on resale or other illiquid
securities.
Other Restrictions. To comply with the current state regulations, the
Fund presently intends to observe the following restrictions, which may be
changed by the Board of Trustees without shareholder approval.
Arizona. The Fund presently has no investment policy that restricts
the Fund's purchase of securities issued by companies that have been in
operation less than three years.
California. As long as the rules promulgated under the California
Corporate Securities Law include restrictions on options transactions by an
investment company, the Fund will adhere to such restrictions as interpreted by
the staff of the California Department of Corporations. The Fund will limit
writing of puts such that the aggregate value of the obligations underlying such
puts will not exceed 50% of the Fund's net assets, and the Fund will limit the
purchase of puts and calls such that the premiums paid therefor shall not exceed
20% of the net assets of the Fund.
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<PAGE>
Texas. The Fund may not invest in oil, gas or mineral leases. The Fund
may not purchase or sell real property including limited partnership interests,
but excluding readily marketable interests in real estate investment trusts or
readily marketable securities of companies which invest in real estate. The Fund
will not lend portfolio securities. In addition, shares of the Fund sold in
Texas will be exchanged for a money market fund sponsored by AmeriPrime Funds
only if such money market fund is registered in Texas.
THE INVESTMENT ADVISER
The Fund's investment adviser is Advanced Investment Technology, Inc.,
311 Park Place Blvd., Clearwater, Florida 34619. Dean S. Barr may be deemed to
be a controlling person of the Adviser due to his ownership of its shares and
his position as chief investment officer and chairman of the Adviser.
Under the terms of the management agreement (the "Agreement"), the
Adviser manages the Fund's investments subject to approval of the Board of
Trustees and pays all of the expenses of the Fund except brokerage, taxes,
interest, fees and expenses of the non-interested person trustees and
extraordinary expenses. As compensation for its management services and
agreement to pay the Fund's expenses, the Fund is obligated to pay the Adviser a
fee computed and accrued daily and paid monthly at an annual rate of 0.70% of
the average daily net assets of the Fund. The Adviser may waive all or part of
its fee, at any time, and at its sole discretion, but such action shall not
obligate the Adviser to waive any fees in the future.
The Adviser retains the right to use the names "AIT" and "AIT Vision"
in connection with another investment company or business enterprise with which
the Adviser is or may become associated. The Trust's right to use the name "AIT"
and "AIT Vision" automatically ceases ninety days after termination of the
Agreement and may be withdrawn by the Adviser on ninety days written notice.
The Adviser may make payments to banks or other financial institutions
that provide shareholder services and administer shareholder accounts. The
Glass-Steagall Act prohibits banks from engaging in the business of
underwriting, selling or distributing securities. Although the scope of this
prohibition under the Glass-Steagall Act has not been clearly defined by the
courts or appropriate regulatory agencies, management of the Fund believes that
the Glass-Steagall Act should not preclude a bank from providing such services.
However, state securities laws on this issue may differ from the interpretations
of federal law expressed herein and banks and financial institutions may be
required to register as dealers pursuant to state law. If a bank were prohibited
from continuing to perform all or a part of such services, management of the
Fund believes that there would be no material impact on the Fund or its
shareholders. Banks may charge their customers fees for offering these services
to the extent permitted by applicable regulatory authorities, and the overall
return to those shareholders availing themselves of the bank services will be
lower than to those shareholders who do not. The Fund may from time to time
purchase securities issued by banks which provide such services; however, in
selecting investments for the Fund, no preference will be shown for such
securities.
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<PAGE>
TRUSTEES AND OFFICERS
The names of the Trustees and executive officers of the Trust are shown
below. Each Trustee who is an "interested person" of the Trust, a defined in the
Investment Company Act of 1940, is indicated by an asterisk.
<TABLE>
<S> <C> <C>
Name, Age and Address Position Principal Occupations During Past 5 Years
* Kenneth D. Trumpfheller President and Trustee President, Treasurer and Secretary of AmeriPrime Financial
Age: 37 Services, Inc., the Fund's administrator, and AmeriPrime
Suite 200 Financial Securities, Inc., the Fund's distributor.
1793 Kingswood Drive Prior to December, 1994, a senior client executive with SEI
Southlake, Texas 76092 Financial Services.
Kelli D. Shomaker, C.P.A. Secretary, Treasurer Manager of Compliance of AmeriPrime Financial Services,
1793 Kingswood Drive Inc.; Vice President, Chief Accounting Officer, Treasurer
Suite 200 and Controller of United Services Advisors, Inc. and United
Age: 33 Services Insurance Funds from 1994 to 1995; Vice President,
Southlake, Texas 76092 Chief Accounting Officer, Treasurer, and Controller of
Accolade Funds and Pauze/Swanson United Services Funds from
1993 to 1995; Controller from 1987 to 1995 and Vice President,
Chief Accounting Officer and Treasurer from 1990 to 1995 of
United Services Funds; Director of Security Trust & Financial
Company from 1993 to 1995.
Steve L. Cobb Trustee President of Clare Energy, Inc., oil and gas exploration
Age: 37 company; International Marketing Manager of Carbo Ceramics
140 Mockingbird Lane Inc., oil field manufacturing/supply company.
Coppell, Texas 76019
Gary E. Hippenstiel Trustee President and Director of Heritage Trust Company; Vice
Age: 48 President and Chief Investment Officer of Legacy Trust
600 Jefferson Street Company; Vice President and Manager of Investments of
Houston, Texas 70002 Kanaly Trust Company from 1988 to 1992.
</TABLE>
The compensation paid to the Trustees of the Trust is set forth in the
following table:
<TABLE>
<S> <C> <C> <C> <C>
Pension or
Aggregate Retirement Estimated Annual Total Compensation
Compensation Accrued As Part Benefits Upon from Trust (the Trust is
Name from Trust (1) of Fund Expenses Retirement not in a Fund Complex) (1)
Kenneth D. Trumpfheller 0 0 0 0
Steve L. Cobb $4,000 0 0 $4,000
Gary E. Hippenstiel $4,000 0 0 $4,000
<FN>
1 Trustee fees are Trust expenses and each series of the Trust pays a portion
of the Trustee fees. The compensation is estimated for the first full year of
the Trust ending October 31, 1996.
</FN>
</TABLE>
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PORTFOLIO TRANSACTIONS AND BROKERAGE
Subject to policies established by the Board of Trustees of the Trust,
the Adviser is responsible for the Fund's portfolio decisions and the placing of
the Fund's portfolio transactions. In placing portfolio transactions, the
Adviser seeks the best qualitative execution for the Fund, taking into account
such factors as price (including the applicable brokerage commission or dealer
spread), the execution capability, financial responsibility and responsiveness
of the broker or dealer and the brokerage and research services provided by the
broker or dealer. The Adviser generally seeks favorable prices and commission
rates that are reasonable in relation to the benefits received.
The Adviser is specifically authorized to select brokers or dealers who
also provide brokerage and research services to the Fund and/or the other
accounts over which the Adviser exercises investment discretion and to pay such
brokers or dealers a commission in excess of the commission another broker or
dealer would charge if the Adviser determines in good faith that the commission
is reasonable in relation to the value of the brokerage and research services
provided. The determination may be viewed in terms of a particular transaction
or the Adviser's overall responsibilities with respect to the Trust and to other
accounts over which it exercises investment discretion.
Research services include supplemental research, securities and
economic analyses, statistical services and information with respect to the
availability of securities or purchasers or sellers of securities and analyses
of reports concerning performance of accounts. The research services and other
information furnished by brokers through whom the Fund effects securities
transactions may also be used by the Adviser in servicing all of its accounts.
Similarly, research and information provided by brokers or dealers serving other
clients may be useful to the Adviser in connection with its services to the
Fund. Although research services and other information are useful to the Fund
and the Adviser, it is not possible to place a dollar value on the research and
other information received. It is the opinion of the Board of Trustees and the
Adviser that the review and study of the research and other information will not
reduce the overall cost to the Adviser of performing its duties to the Fund
under the Agreement.
Over-the-counter transactions will be placed either directly with
principal market makers or with broker-dealers, if the same or a better price,
including commissions and executions, is available. Fixed income securities are
normally purchased directly from the issuer, an underwriter or a market maker.
Purchases include a concession paid by the issuer to the underwriter and the
purchase price paid to a market maker may include the spread between the bid and
asked prices.
To the extent that the Trust and another of the Adviser's clients seek
to acquire the same security at about the same time, the Trust may not be able
to acquire as large a position in such security as it desires or it may have to
pay a higher price for the security. Similarly, the Trust may not be able to
obtain as large an execution of an order to sell or as high a price for any
particular portfolio security if the other client desires to sell the same
portfolio security at the same time. On the other hand, if the same securities
are bought or sold at the same time by more than one client, the resulting
participation in volume transactions could produce better executions for the
Trust. In the event that more than one client wants to purchase or sell the same
security on a given date, the purchases and sales will normally be made by
random client selection.
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<PAGE>
DETERMINATION OF SHARE PRICE
The price (net asset value) of the shares of the Fund is determined as
of 4:00 p.m., Eastern time on each day the Trust is open for business and on any
other day on which there is sufficient trading in the Fund's securities to
materially affect the net asset value. The Trust is open for business on every
day except Saturdays, Sundays and the following holidays: New Year's Day,
President's Day, Good Friday, Memorial Day, Independence Day, Labor Day,
Thanksgiving and Christmas. For a description of the methods used to determine
the net asset value (share price), see "Share Price Calculation" in the
Prospectus.
INVESTMENT PERFORMANCE
"Average annual total return," as defined by the Securities and
Exchange Commission, is computed by finding the average annual compounded rates
of return (over the one and five year periods and the period from initial public
offering through the end of the Fund's most recent fiscal year) that would
equate the initial amount invested to the ending redeemable value, according to
the following formula:
n
P(1+T) = ERV
Where: P = a hypothetical $1,000 initial investment
T = average annual total return
n = number of years
ERV = ending redeemable value at the end of the
applicable period of the hypothetical $1,000
investment made at the beginning of the applicable
period.
The computation assumes that all dividends and distributions are reinvested at
the net asset value on the reinvestment dates and that a complete redemption
occurs at the end of the applicable period.
The Fund's investment performance will vary depending upon market
conditions, the composition of the Fund's portfolio and operating expenses of
the Fund. These factors and possible differences in the methods and time periods
used in calculating non-standardized investment performance should be considered
when comparing the Fund's performance to those of other investment companies or
investment vehicles. The risks associated with the Fund's investment objective,
policies and techniques should also be considered. At any time in the future,
investment performance may be higher or lower than past performance, and there
can be no assurance that any performance will continue.
From time to time, in advertisements, sales literature and information
furnished to present or prospective shareholders, the performance of the Fund
may be compared to indices of broad groups of unmanaged securities considered to
be representative of or similar to the portfolio holdings of the Fund or
considered to be representative of the stock market in general. The Fund may use
the Standard & Poor's 500 Stock Index or the Dow Jones Industrial Average.
In addition, the performance of the Fund may be compared to other
groups of mutual funds tracked by any widely used independent research firm
which ranks mutual funds by overall performance, investment objectives and
assets, such as Lipper Analytical Services, Inc. or Morningstar, Inc. The
objectives, policies, limitations and expenses of other mutual funds in a group
- 8 -
<PAGE>
may not be the same as those of the Fund. Performance rankings and ratings
reported periodically in national financial publications such as Barron's and
Fortune also may be used.
CUSTODIAN
Star Bank, N.A., 425 Walnut Street, Cincinnati, Ohio 45202, is
Custodian of the Fund's
<PAGE>
investments. The Custodian acts as the Fund's depository, safekeeps its
portfolio securities, collects all income and other payments with respect
thereto, disburses funds at the Fund's request and maintains records in
connection with its duties.
TRANSFER AGENT
American Data Services, Inc., 24 W. Carver Street, Huntington, New York
11743, acts as the Fund's transfer agent and, in such capacity, maintains the
records of each shareholder's account, answers shareholders' inquiries
concerning their accounts, processes purchases and redemptions of the Fund's
shares, acts as dividend and distribution disbursing agent and performs other
accounting and shareholder service functions. In addition, American Data
Services, Inc. provides the Fund with certain monthly reports, record-keeping
and other management-related services.
ACCOUNTANTS
The firm of McCurdy & Associates, CPA's, 27955 Clemens Road, Westlake,
Ohio 44145, has been selected as independent public accountants for the Trust
for the fiscal year ending October 31, 1996. McCurdy & Associates performs an
annual audit of the Fund's financial statements and provides financial, tax and
accounting consulting services as requested.
DISTRIBUTOR
AmeriPrime Financial Securities, Inc., 1793 Kingswood Drive, Suite 200,
Southlake, Texas 76092, is the exclusive agent for distribution of shares of the
Fund. The Distributor is obligated to sell the shares of the Fund on a best
efforts basis only against purchase orders for the shares. Shares of the Fund
are offered to the public on a continuous basis.
- 9 -
<PAGE>
To the Shareholders and Trustees
AIT Vision U.S. Equity Portfolio
We have audited the accompanying balance sheet of AIT Vision U.S. Equity
Portfolio (a diversified series of AmeriPrime Funds) as of October 26, 1995.
This financial statement is the responsibility of the Company's management. Our
responsibility is to express an opinion on this financial statement based on our
audit.
We conducted our audit in accordance with generally accepted auditing standards.
Those standards require that we plan and perform the audit to obtain reasonable
assurance about whether the balance sheet is free of material misstatement. An
audit includes examining, on a test basis, evidence supporting the amounts and
disclosures in the balance sheet. An audit also includes assessing the
accounting principles used and significant estimates made by management, as well
as evaluating the overall balance sheet presentation. Our procedures included
confirmation of cash held by the custodian as of October 26, 1995, by
correspondence with the custodian. We believe that our audit of the balance
sheet provides a reasonable basis for our opinion.
In our opinion, the balance sheet referred to above presents fairly, in all
material respects, the financial position of AIT Vision U.S. Equity Portfolio as
of October 26, 1995, in conformity with generally accepted accounting
principles.
McCurdy & Associates CPA's, Inc.
Westlake, Ohio
October 26, 1995
- 10 -
<PAGE>
<TABLE>
<CAPTION>
AIT VISION U.S. EQUITY PORTFOLIO
STATEMENT OF ASSETS & LIABILITIES
OCTOBER 26, 1995
<S> <C>
ASSETS:
Cash in Bank $25,000
Total Assets $25,000
NET ASSETS $25,000
NET ASSETS CONSIST OF:
Capital Paid In $25,000
OUTSTANDING SHARES
Unlimited Number of Shares
Authorized Without Par Value $2,500
NET ASSET VALUE PER SHARE $10
OFFERING PRICE PER SHARE $10
</TABLE>
See Accountant's Audit Report
- 11 -
<PAGE>
AIT VISION U.S. EQUITY PORTFOLIO
NOTES TO FINANCIAL STATEMENTS
1. ORGANIZATION
AIT Vision U.S. Equity Portfolio is a diversified series of AmeriPrime
Funds an open-end investment company established under the laws of Ohio by an
Agreement and Declaration of Trust dated August 8, 1995. The Trust Agreement
permits the Trustees to issue an unlimited number of shares of beneficial
interest of separate series without par value.
The Trust uses an independent transfer agent and dividend paying agent.
No transactions other than those relating to organizational matters and the sale
of 2,500 shares of AIT Vision U.S. Equity Portfolio have taken place to date.
2. RELATED PARTY TRANSACTIONS
The initial purchase of Registrant's shares was made by AmeriPrime
Financial Securities, Inc. (a corporation which may be deemed to be controlled
by Kenneth Trumpfheller). As a result of this purchase, the Registrant may be
deemed to be under common control with AmeriPrime Financial Securities, Inc.
and Kenneth Trumpfheller.
The Fund's distribution and administration functions are handled by
AmeriPrime Financial Securities, Inc. and AmeriPrime Financial Services, Inc.
respectively. These corporations may be deemed to be under the common control of
Kenneth Trumpfheller who may be deemed to be a controlling person of each
corporation due to his ownership of shares and his positions as an officer and
director. Mr. Trumpfheller, because of such affiliation, may receive benefits
from the distribution and administration fees.
The Fund's investment adviser (the "Adviser") is LBS Capital
Management, Inc. Under the terms of the management agreement (the "Agreement"),
the Adviser manages the Fund's investments subject to approval of the Board of
Trustees and pays all of the expenses of the Fund except brokerage, taxes,
interest, fees and expenses of non-interested person trustees, and extraordinary
expenses. As compensation for its management services and agreement to pay the
Fund's expenses, the Fund is obligated to pay the Adviser a fee computed and
accrued daily and paid monthly at an annual rate of 1.50% of the average daily
net assets of the Fund.
Unlike most other mutual funds, the Fund does not pay directly for
transfer agency, pricing, custodial, auditing or legal services, nor does it pay
directly any general administrative or other operating expenses. The Adviser
pays all of the expenses of the Fund except brokerage, taxes, interest, fees and
expenses of non-interested person trustees, and extraordinary expenses.
- 12 -
<PAGE>
AIT VISION U.S. EQUITY PORTFOLIO
NOTES TO FINANCIAL STATEMENTS
(CONT'D)
3. CAPITAL STOCK AND DISTRIBUTION
At October 26, 1995 an unlimited number of shares were authorized, and
paid-in capital amounted to $25,000. Transactions in capital stock were as
follows:
Shares sold 2,500
Shares redeemed -0-
Net Increase 2,500
Shares Outstanding:
Beginning of period -0-
End of period 2,500
- 13 -
<PAGE>
<TABLE>
<CAPTION>
AIT VISION U.S. EQUITY PORTFOLIO
SCHEDULE OF INVESTMENTS
April 30, 1996
(Unaudited)
<C> <S> <C>
Shares Value
- -------- ---------
COMMON STOCKS 95.94%
BROADCASTING 2.71%
200 Clear Channel Communication* $ 13,550
-----------
CABLE TELEVISION 1.14%
300 Telecommunications Inc. 5,737
-----------
CASINO/GAMBLING 3.14%
300 Mirage Resorts Inc.* 15,712
-----------
CLOTHING/SHOE/ACCESS CHAINS 5.80%
400 Gap Inc. 12,050
100 Nordstrom Inc. 5,087
400 TJX Cos Inc. 11,800
-----------
28,937
-----------
COMPUTER SOFTWARE 8.39%
300 Continuum Inc.* 17,100
100 Microsoft Corp.* 11,338
400 Oracle Corp.* 13,500
-----------
41,938
-----------
The accompanying notes are an integral part of these financial statements.
<PAGE>
AIT VISION U.S. EQUITY PORTFOLIO
SCHEDULE OF INVESTMENTS
April 30, 1996
(Unaudited)
Shares Value
- -------- -------
COMPUTER/VIDEO CHAINS 3.57%
400 Circuit City Stores Inc. $ 12,700
100 Tandy Corp. 5,187
-----------
17,887
-----------
CONSTRUCTION/AGRICULTURAL
EQUIPMENT/TRUCKS 3.27%
300 JLG Industries Inc. 16,350
-----------
CONTRACT DRILLING 3.43%
700 Reading & Bates Corp. 17,150
-----------
DIVERSIFIED COMMERCIAL SERVICES 2.71%
200 Pay Chex Inc. 13,550
-----------
DIVERSIFIED ELECTRONICS PRODUCTS 1.71%
200 SCI SYS. INC. 8,575
-----------
DIVERSIFIED MANUFACTURE 5.27%
300 Danaher Corp. 11,813
200 Dresser Industries Inc. 6,375
400 Zurn Industries Inc. 8,150
-----------
26,338
-----------
ELECTRONIC DATA PROCESSING 4.23%
200 Hewlett Packard Co. 21,175
-----------
The accompanying notes are an integral part of these financial statements.
<PAGE>
AIT VISION U.S. EQUITY PORTFOLIO
SCHEDULE OF INVESTMENTS
April 30, 1996
(Unaudited)
Shares Value
- -------- -------
ENGINEERING & CONSTRUCTION 2.22%
400 Jacobs Engineering Group Inc. $ 11,100
-----------
FINANCE COMPANIES 1.46%
100 Student Loan Marketing Assn. 7,325
-----------
FINANCIAL PUBLISHING/SERVICES 2.45%
500 Equifax Inc. 12,250
-----------
FOREST PRODUCTS 3.11%
200 Georgia Pacific Corp. 15,550
-----------
HEALTH INDUSTRY SERVICES 2.37%
100 HBO & Co. 11,875
-----------
INDUSTRIAL MACHINERY/COMPONENTS 0.77%
100 Ingersoll Rand Co. 3,875
-----------
INDUSTRIAL SPECIALTIES 5.72%
600 BMC Industries Inc. 16,050
300 Millipore Corp. 12,562
-----------
28,612
-----------
The accompanying notes are an integral part of these financial statements.
<PAGE>
AIT VISION U.S. EQUITY PORTFOLIO
SCHEDULE OF INVESTMENTS
April 30, 1996
(Unaudited)
Shares Value
- -------- --------
INVESTMENT BANKERS/BROKERS/SERVICES 1.21%
100 Merrill Lynch & Co. Inc. $ 6,038
-----------
INVESTMENT MANAGERS 2.29%
200 Franklin Res. Inc. 11,450
-----------
MAJOR BANKS 5.92%
200 BankAmerica Corp. 15,150
235 First Union Corp. 14,453
-----------
29,603
MAJOR PHARMACEUTICALS 3.70%
200 Johnson & Johnson 18,500
-----------
NATURAL GAS DISTRIBUTIONS 0.93%
100 Consolidated Natural Gas Co. 4,675
-----------
OIL REFINING/MARKETING 1.15%
200 Valero Energy Corp. 5,775
-----------
OILFIELD SERVICES/EQUIPMENT 3.44%
300 Halliburton Co. 17,213
-----------
OTHER SPECIALITY CHAINS 1.33%
200 Pep Boys Manny, Moe & Jack 6,675
-----------
The accompanying notes are an integral part of these financial statements.
<PAGE>
AIT VISION U.S. EQUITY PORTFOLIO
SCHEDULE OF INVESTMENTS
April 30, 1996
(Unaudited)
Shares Value
- -------- ---------
PACKAGED FOODS 1.60%
200 Dole Food Inc. $ 8,000
-----------
PACKAGED GOODS/COSMETICS 3.38%
200 Procter & Gamble Co. 16,900
-----------
PAINTS/COATINGS 2.02%
200 PPG Industries Inc. 10,125
-----------
PRECIOUS METALS 2.10%
800 Echo Bay Mines Ltd. 10,500
-----------
SAVINGS & LOANS ASSOCIATIONS 2.22%
400 Washington Mutual Inc. 11,100
-----------
SPECIALTY STEELS 1.18%
300 Allegheny Ludium Corp. 5,925
-----------
TOTAL COMMON STOCKS (COST $430,482) 479,965
-----------
TOTAL INVESTMENTS (Cost $430,482) 95.94% 479,965
Other Assets less Liabilities 4.06% 20,310
------- ---------
TOTAL NET ASSETS 100.00% $500,275
======= =========
<FN>
*Non-Income producing securities.
</FN>
</TABLE>
The accompanying notes are an integral part of these financial statements.
<PAGE>
<TABLE>
<CAPTION>
AIT VISION U.S. EQUITY PORTFOLIO
STATEMENT OF ASSETS AND LIABILITIES
April 30, 1996
(Unaudited)
<S> <C>
ASSETS:
Investment in common stock at market value
(identified cost--$430,482)(Note 1)............................ $479,965
Cash............................................................. 15,257
Receivable for securities sold................................... 5,661
Dividends and interest receivable................................ 235
--------
TOTAL ASSETS.................................. 501,118
--------
LIABILITIES:
Accrued advisory fee............................................. 563
Dividends payable................................................ 0
Accrued operating expenses....................................... 280
--------
TOTAL LIABILITIES............................. 843
--------
NET ASSETS (equivalent to $11.10 per share based on
45,068 shares of common stock outstanding)--(Note 4)...... $500,275
========
NET ASSETS CONSIST OF:
Paid in capital (Note 4)....................................... $458,586
Undistributed net investment income/(loss)..................... (1,267)
Accumulated undistributed net realized gain/(loss) from security
transactions................................................ (6,527)
Net unrealized appreciation/(depreciation) of investments...... 49,483
--------
NET ASSETS APRIL 30, 1996........................................ $500,275
========
</TABLE>
The accompanying notes are an integral part of these financial statements.
<PAGE>
<TABLE>
<CAPTION>
AIT VISION U.S. EQUITY PORTFOLIO
STATEMENT OF OPERATIONS
For the period from November 6, 1995
(Commencement of Operations) through April 30, 1996
(Unaudited)
<S> <C>
INVESTMENT INCOME:
Dividends...................................................... $1,028
Interest....................................................... 0
--------
TOTAL INVESTMENT INCOME..................................... 1,028
--------
OPERATING EXPENSES:
Investment advisory fee (Note 3)............................... 1,615
Trustees' fees................................................. 680
TOTAL OPERATING EXPENSES.................................... 2,295
NET INVESTMENT INCOME/(LOSS)................................ (1,267)
NET REALIZED AND UNREALIZED GAINS/(LOSSES) ON
INVESTMENTS:
Net realized gain/(loss) on security transactions................ (6,527)
Net change in unrealized appreciation/(depreciation)
on investments.................................................. 49,483
NET GAIN/(LOSS) ON INVESTMENTS................................... 42,956
NET INCREASE/(DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS...................................... $41,689
</TABLE>
The accompanying notes are an integral part of these financial statements.
<PAGE>
<TABLE>
<CAPTION>
AIT VISION U.S. EQUITY PORTFOLIO
STATEMENT OF CHANGES IN NET ASSETS
For the period ended April 30, 1996
(Unaudited)
<S> <C>
INCREASE/(DECREASE) IN NET ASSETS FROM OPERATIONS:
Net investment income/(loss)................................... $(1,267)
Net realized gain/(loss) from securities transactions.......... (6,527)
Net change in unrealized appreciation/(depreciation) of investments
during the period............................................. 49,483
---------
NET INCREASE/(DECREASE) IN NET ASSETS FROM
OPERATIONS.................................................. 41,689
---------
DISTRIBUTION TO SHAREHOLDERS:
Net investment income......................................... 0
Realized gain................................................. 0
---------
0
---------
FUND SHARE TRANSACTIONS:
Shares sold.................................................... 434,192
Shares issued in reinvestment of dividends..................... 0
Shares redeemed................................................ (606)
---------
TOTAL CAPITAL STOCK............................................. 433,586
---------
NET INCREASE/(DECREASE) IN NET ASSETS............................ 475,275
---------
NET ASSETS:
Beginning of period........................................... 25,000
---------
End of period.................................................. $500,275
=========
</TABLE>
The accompanying notes are an integral part of these financial statements.
<PAGE>
<TABLE>
<CAPTION>
AIT VISION U.S. EQUITY PORTFOLIO
FINANCIAL HIGHLIGHTS
For a share outstanding throughout the period from
November 6, 1995 (Commencement of Operations)
through April 30, 1996
(Unaudited)
<S> <C>
Net asset value- beginning of period........................... $10.00
--------
Income from investment operations:
Net investment income/(loss)................................... (.04)
Net gain/(loss) on investments both realized and unrealized.... 1.14
--------
Total from investment operations............................... 1.10
--------
Less distributions:
Dividends from net investment income........................... 0
Dividends from capital gains................................... 0
--------
Net asset value - end of period................................. $11.10
========
Total Return**................................................. 32.47%
Ratio/supplemental data:
Net assets, end of period (in 000's)........................... 500
Ratio of expenses to average net assets**...................... 2.07%
Ratio of net investment income to average net assets**......... (1.15)%
Portfolio turnover rate........................................ 81.56%
Average Commission rate paid................................... .0471
<FN>
** Annualized
</FN>
</TABLE>
The accompanying notes are an integral part of these financial statements.
<PAGE>
AIT VISION U.S. EQUITY PORTFOLIO
Notes to Financial Statements
April 30, 1996
(Unaudited)
1. ORGANIZATION
The AIT Vision U.S. Equity Portfolio (the "Fund") was organized as a
series of the AmeriPrime Funds, an Ohio business trust (the "Trust"), on
August 8, 1995, and commenced operations on November 6, 1995. The Trust is
registered under the Investment Company Act of 1940, as amended, as a
diversified series, open end management investment company. The Trust Agreement
permits the Trustees to issue an unlimited number of shares of beneficial
interest of separate series without par value.
2. SIGNIFICANT ACCOUNTING POLICIES
The following is a summary of significant accounting policies followed by
the Fund in the preparation of its financial statements.
Securities Valuations - Securities which are traded on any exchange or on
the NASDAQ over-the-counter market are valued at the last quoted sale price.
Lacking a last sale price, a security is valued at its last bid price except
when, in the 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 Adviser
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 Adviser, in conformity with guidelines adopted
by and subject to review of the Board of Trustees of the Trust.
Fixed income securities generally are valued by using market quotations,
but may be valued on the basis of prices furnished by a pricing service when the
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. 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.
<PAGE>
AIT VISION U.S. EQUITY PORTFOLIO
Notes to Financial Statements
April 30, 1996
(Unaudited)
Federal Income Taxes - The Fund intends to qualify each year as a "regulated
investment company" under the Internal Revenue Code of 1986, as amended. By so
qualifying, the Fund will not be subject to federal income taxes to the extent
that it distributes substantially all of its net investment income and any
realized capital gains.
Dividends and Distributions - The Fund intends to distribute substantially all
of its net investment income as dividends to its shareholders on an annual
basis. The Fund intends to distribute its net long term capital gains and its
net short term capital gains at least once a year.
Other - The Fund follows industry practice and records security transactions on
the trade date. The specific identification method is used for determining
gains or losses for financial statements and income tax purposes. Dividend
income is recorded on the ex-dividend date and interest income is recorded on an
accrual basis.
NOTE 3. INVESTMENT ADVISORY AGREEMENT
The Fund retains LBS Capital Management, Inc. (the "Adviser") to manage the
Fund's investments. Dean S. Barr and Walter J. Loick are the controlling
shareholders of the Adviser. Douglas W. Case, CFA, Director of Equity Portfolio
Mangement, and Dean S. Barr, Managing Director and Chief Investment Officer, are
primarily responsible for the day to day managment of the Fund's portfolio.
Under the terms of the management agreement, (the "Agreement"), the Adviser
manages the Fund's investments subject to approval of the Board of Trustees and
pays all of the expenses of the Fund except brokerage, taxes, interest, fees and
expenses of non-interested persons, trustees, and extraordinary expenses. As
compensation for its management services and agreement to pay the Fund's
expenses, the Fund is obligated to pay the Adviser a fee computed and accrued
daily and paid monthly at an annual rate of 1.47% of the average daily net
assets of the Fund. The rate of the advisory fees paid by most investment
companies to their investment advisers is lower than the rate of the advisory
fees paid by the Fund. In this regard, it should be noted that most investment
companies pay thier own operating expenses directly, while the Fund's expenses,
except those specified above, are paid by the Adviser. For the period from
November 6, 1995 through April 30, 1996, the Adviser has received a fee of
$1,615 from the Fund.
<PAGE>
AIT VISION U.S. EQUITY PORTFOLIO
Notes to Financial Statements
April 30, 1996
(Unaudited)
NOTE 4. CAPITAL SHARE TRANSACTIONS
As of April 30, 1996 there was an unlimited number of no par value shares of
capital stock authorized for the Fund.
Transactions in capital stock were as follows:
<TABLE>
For the period from
November 6, 1995 (Commencement of
Operations) through April 30, 1996
<S> <C> <C>
Shares Amount
--------- ----------
Shares sold 42,625 $434,192
Shares issued in reinvestment
of dividends 0 0
Shares redeemed (57) (606)
--------- ----------
Net increase 42,568 $433,586
========= ==========
Total paid in capital $458,586
==========
</TABLE>
NOTE 5. INVESTMENTS
For the period from November 6, 1995 (commencement of operations) through
April 30, 1996, purchases and sales of investment securities, other than short-
term investments, aggregated $680,673 and $243,664 respectively. The gross
unrealized appreciation for all securities totaled $52,121 and the gross
unrealized depreciation for all securities totaled $2,638 for a net unrealized
appreciation of $49,483 The aggregate cost of securities for federal income
tax purposes at April 30, 1996 was $430,482.
