Carl Domino Associates, LLP
580 Village Boulevard, Suite 225
West Palm Beach, FL 33409
Telephone Number: Fax: 561-697-0700
561-697-2723 Research Library Fax: 561-686-8974
December 1996
Dear Shareholders:
We are pleased to present the investment results for the Carl Domino Equity
Income Fund. Since inception in December 1995, the Fund has returned 20.3%,
significantly outperforming the return of the S&P 500 at 18.6%.
<TABLE>
<S> <C> <C> <C> <C> <C>
Comparative Investment Dec. 1st Qtr. 2nd Qtr. 3rd Qtr. Oct.
Returns 1995 1996 1996 1996 1996
Carl Domino Equity Income Fund 3.0% 5.2% 6.6% 2.4% 1.8%
S&P 500* 1.7% 5.4% 4.4% 3.1% 2.8%
</TABLE>
[Graph here]
This graph visually depicts the performance of the Fund versus the S&P 500
Index. The graph compares the investment of $10,000 from inception of the Fund
(December 1, 1995) through October 31, 1996. This graph indicates that at
October 31, 1996 the value of the investment was $12,038 versus the S&P 500
of $11,503.
*Past performance is not predictive of future performance. This chart assumes an
initial investment of $10,000 in the Fund and the S&P 500 Index on
December 1, 1995 and held through October 31, 1996. The S&P 500 Index
is a widely recognized unmanaged index of common stock prices. Performance
figures include the change in value of the stocks in the index and reinvestment
of dividends and are not annualized.
The Fund's performance during the last year was, in part, due to our emphasis in
the health care, financial services and energy sectors. Despite the fact that
the markets are at all time highs, we still find many securities that offer good
value. Our fundamental research efforts continue to focus on undervalued
companies with strong financials and improving future prospects. As always, we
are maintaining close contact with the management of companies where we are
invested in order to avoid unpleasant surprises.
As you may know, the Fund's investment strategy is designed to participate in
robust equity markets while minimizing downside risk in poor markets. Be assured
that although we cannot guarantee future results, the investment professionals
at Carl Domino Associates, L.P. will work hard to avoid disappointments and take
advantage of opportunities as they rise.
Best regards,
Carl J. Domino
Managing Partner
<PAGE>
INDEPENDENT AUDITOR'S REPORT
To The Shareholders and Board of Trustees
The Carl Domino Equity Income Fund
We have audited the statement of assets and liabilities including the portfolio
of investments, of The Carl Domino Equity Income Fund (a member of the
Ameriprime Fund Series) as of October 31, 1996, and the related statement of
operations, the statement of changes in net assets, and the financial highlights
for the period from November 6, 1995 (commencement of operations) to October 31,
1996. These financial statements and financial highlights are the responsibility
of the Fund's management. Our responsibility is to express an opinion on these
financial statements and financial highlights 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 financial statements and financial highlights are
free of material misstatement. An audit includes examining, on a test basis,
evidence supporting the amounts and disclosures in the financial statements. Our
procedures included confirmation of securities owned as of October 31, 1996, by
correspondence with the custodian and brokers. An audit also includes assessing
the accounting prin ciples used and significant estimates made by management, as
well as evaluating the overall financial statement presentation. We believe that
our audit provides a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of The
Carl Domino Equity Income Fund as of October 31, 1996, the results of it's
operations, the changes in it's net assets, and the financial highlights for the
period from November 6, 1995 (commencement of operations) to October 31, 1996 in
conformity with generally accepted accounting principles.
McCurdy & Associates CPA's, Inc.
Westlake, Ohio 44145
November 20, 1996
<PAGE>
<TABLE>
<CAPTION>
CARL DOMINO EQUITY INCOME FUND
SCHEDULE OF INVESTMENTS
October 31, 1996
<C> <S> <C>
Shares Value
- ------ ------
COMMON STOCKS 98.33%
ELECTRONIC EQUIPMENT 3.02%
800 Thomas & Betts Corp. $ 33,900
-------
PUBLISHING 2.22%
700 Reader's Digest Assn. Inc. 24,938
------
PUBLISHING & ENTERTAINMENT 1.25%
400 Cedar Fair LP 14,000
------
RETAIL 6.65%
1,100 Intimate Brands Inc. 19,938
400 May Department Stores 18,950
500 Saks Holdings* 17,500
1,000 Stage Stores Co.* 18,250
------
74,638
------
OIL & GAS DOMESTIC 8.74%
1,000 Houston Exploration* 17,125
500 Questar Corp. 18,000
400 Sonat Inc. 19,700
300 Tenneco 14,850
1,300 USX-Marathon Group 28,437
------
98,112
------
The accompanying notes are an integral part of these financial statements.
<PAGE>
CARL DOMINO EQUITY INCOME FUND
SCHEDULE OF INVESTMENTS
October 31, 1996
Shares Value
- ------ -------
OIL & GAS INTERNATIONAL 4.02%
250 Mobil Corp. $ 29,187
700 YPF Sociedad Anonima ADR 15,925
-------
45,112
-------
FINANCE-MISCELLANEOUS 4.94%
500 American States Financial 11,812
500 Checkpoint Software* 13,750
500 Infinity Finanial* 8,188
575 MBNA Corp. 21,706
------
55,456
------
INSURANCE-MULTI/P & C/LIFE 8.50%
900 GCR Holdings Ltd* 20,925
400 ITT Hartford Group Inc. 25,200
500 Lincoln National Corp. 24,250
800 USLife Corp. 25,000
------
95,375
------
MAJOR REGULAR BANKS/OTHER BANKS 3.90%
400 Boatmens Bancshares Inc. 24,300
400 CoreStates Financial Corp. 19,450
------
43,750
------
The accompanying notes are an integral part of these financial statements.
<PAGE>
CARL DOMINO EQUITY INCOME FUND
SCHEDULE OF INVESTMENTS
October 31, 1996
Shares Value
- ------ -----
MONEY CENTER BANKS 2.29%
300 Chase Manhattan Corp. $ 25,725
------
SAVINGS & LOANS 4.90%
700 Ahmanson H F & Co. 21,963
600 Great Western Financial Corp. 16,800
1,000 Home Financial Corp. 16,250
------
55,013
------
MISCELLANEOUS 9.99%
500 Arden Realty Group 11,313
1,000 Metronetworks* 20,250
2,500 Midcoast Energy Resources 25,000
500 Premier Parks Inc.* 15,875
500 Sabre Group Holdings* 15,250
2,200 Storm Primax Inc. 24,475
------
112,163
-------
REIT's 2.40%
700 Glimcher Realty Trust 13,475
600 Security Capital Pacific Trust 13,500
------
26,975
------
CHEMICAL 1.66%
600 Witco Corp. 18,600
------
The accompanying notes are an integral part of these financial statements.
<PAGE>
CARL DOMINO EQUITY INCOME FUND
SCHEDULE OF INVESTMENTS
October 31, 1996
Shares Value
- ------ -----
PER & FOREST PRODUCTS/PACKAGING 2.17%
500 Union Camp Corp. $ 24,375
------
COSMETICS 2.66%
700 Tambrands Inc. 29,837
------
DRUGS 13.86%
1,600 Adac Labs* 32,800
300 American Home Products Corp. 18,375
270 Bristol-Myers 28,553
800 Glaxo Welcome PLC ADR 25,200
700 Pharmacia & Upjohn Inc. 25,200
400 Warner Lambert Co. 25,450
-------
155,578
-------
FOOD 2.79%
300 General Mills 17,138
400 Heinz H J Co. 14,200
------
31,338
------
HEALTHCARE 2.02%
100 Allegiance Corp. 1,875
500 Baxter International Inc. 20,813
------
22,688
------
The accompanying notes are an integral part of these financial statements.
<PAGE>
CARL DOMINO EQUITY INCOME FUND
SCHEDULE OF INVESTMENTS
October 31, 1996
Shares Value
- ------ -----
STAPLES/MISCELLANEOUS SERVICES 3.74%
600 Deluxe Corp. $ 19,575
1,250 New England Business Service Inc. 22,500
------
42,075
------
TOBACCO 1.23%
150 Phillip Morris Cos. Inc. 13,894
------
PHOTOGRAPHY/OFFICE EQUIPMENT 2.79%
200 Eastman Kodak Co. 15,950
200 Minnesota Mining & Manufacturing Co. 15,325
------
31,275
------
UTILITIES 2.59%
600 AT&T Corp. 20,923
500 International Telecommunication Data System 8,125
------
29,048
------
TOTAL COMMON STOCKS (COST $977,124) 1,103,865
----------
TOTAL INVESTMENTS (Cost $977,124) 98.33% 1,103,865
Other Assets less Liabilities 1.67% 18,781
----- ----------
TOTAL NET ASSETS 100.00% $1,122,646
======= ==========
<FN>
*Non-Income producing securities.
</FN>
</TABLE>
The accompanying notes are an integral part of these financial statements.
<PAGE>
<TABLE>
<CAPTION>
CARL DOMINO EQUITY INCOME FUND
STATEMENT OF ASSETS AND LIABILITIES
October 31, 1996
<S> <C>
ASSETS:
Investment in common stock at market value
(identified cost--$977,124)(Note 1)...................... $1,103,865
Cash....................................................... 2,025
Receivable for securities sold............................. 15,000
Receivable for Fund shares sold............................ 2,071
Dividends and interest receivable.......................... 1,421
----------
TOTAL ASSETS............................ 1,124,382
----------
LIABILITIES:
Accrued advisory fee....................................... 1,401
Accrued trustees' fees..................................... 335
----------
TOTAL LIABILITIES....................... 1,736
----------
NET ASSETS (equivalent to $12.03 per share based on
93,296 shares of common stock outstanding)--(Note 4)..... $1,122,646
==========
NET ASSETS CONSIST OF:
Paid in capital (Note 4).................................. $975,454
Undistributed net investment income/(loss)................ 11,996
Accumulated undistributed net realized gain/(loss) from
security transactions.................................... 8,455
Net unrealized appreciation/(depreciation) of investments... 126,741
----------
NET ASSETS OCTOBER 31, 1996................................. $1,122,646
==========
NET ASSET VALUE, REDEMPTION AND OFFERING
PRICE PER SHARE ................................... $ 12.03
==========
</TABLE>
The accompanying notes are an integral part of these financial statements.
<PAGE>
<TABLE>
<CAPTION>
CARL DOMINO EQUITY INCOME FUND
STATEMENT OF OPERATIONS
For the period from November 6, 1995
(Commencement of Operations) through October 31, 1996
<S> <C>
INVESTMENT INCOME:
Dividends................................................... $23,302
Interest.................................................... 242
--------
TOTAL INVESTMENT INCOME................................... 23,544
--------
OPERATING EXPENSES:
Investment advisory fee (Note 3)............................ 11,548
Trustees' fees.............................................. 1,685
--------
TOTAL OPERATING EXPENSES BEFORE REIMBURSEMENTS 13,233
--------
REIMBURSED TRUSTEES' FEES................................. 1,685
--------
TOTAL OPERATING EXPENSES............................... 11,548
--------
NET INVESTMENT INCOME/(LOSS)....................... 11,996
--------
NET REALIZED AND UNREALIZED GAINS/(LOSSES)
ON INVESTMENTS:
Net realized gain/(loss) on security transactions......... 8,455
Net change in unrealized appreciation/(depreciation) on
investments............................................ 126,741
--------
NET GAIN/(LOSS) ON INVESTMENTS............................ 135,196
--------
NET INCREASE/(DECREASE) IN NET ASSETS RESULTING FROM
OPERATIONS............................................... $147,192
========
</TABLE>
The accompanying notes are an integral part of these financial statements.
<PAGE>
<TABLE>
<CAPTION>
CARL DOMINO EQUITY INCOME FUND
STATEMENT OF CHANGES IN NET ASSETS
For the period from November 6, 1995
(Commencement of Operations) through October 31, 1996
<S> <C>
INCREASE/(DECREASE) IN NET ASSETS FROM OPERATIONS:
Net investment income/(loss).................................. $ 11,996
Net realized gain/(loss) from securities transactions......... 8,455
Net change in unrealized appreciation/(depreciation) of
investments during the period............................... 126,741
-----------
NET INCREASE/(DECREASE) IN NET ASSETS FROM
OPERATIONS................................................. 147,192
-----------
DISTRIBUTION TO SHAREHOLDERS:
Net investment income......................................... 0
Realized gain................................................. 0
-----------
0
-----------
FUND SHARE TRANSACTIONS:
Shares sold................................................... 971,640
Shares issued in reinvestment of dividends.................... 0
Shares redeemed............................................... (21,186)
-----------
TOTAL CAPITAL STOCK 950,454
-----------
NET INCREASE/(DECREASE) IN NET ASSETS 1,097,646
-----------
NET ASSETS:
Beginning of period.......................................... 25,000
-----------
End of period, including undistributed net investment income
of $11,996................................................... $ 1,122,646
===========
</TABLE>
The accompanying notes are an integral part of these financial statements.
<PAGE>
CARL DOMINO EQUITY INCOME FUND
Notes to Financial Statements
October 31, 1996
1. ORGANIZATION
The Carl Domino Equity Income Fund (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>
CARL DOMINO EQUITY INCOME FUND
Notes to Financial Statements
October 31, 1996
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. Discounts and premiums on securities purchased are amortized over the
life of the respective securities.
NOTE 3. FEES AND OTHER TRANSACTIONS WITH AFFILIATES
The Fund retains Carl Domino Associates, L.P. (the "Adviser") to manage the
Fund's investments. The Adviser is a limited partnership organized in Delaware
and its general partner is Carl Domino, Inc. The controlling shareholder of
Carl Domino, Inc. is Carl Domino. Mr. Domino is 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 person trustees, and extraordinary expenses.The
Adviser is voluntarily reimbursing the Fund for trustees fees. There is no
assurance that such reimbursement will continue in the future. 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.
It should be noted that most investment companies pay their 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 October 31,
1996, the Adviser has received a fee of $11,548 from the Fund.
<PAGE>
CARL DOMINO EQUITY INCOME FUND
Notes to Financial Statements
October 31, 1996
NOTE 4. CAPITAL SHARE TRANSACTIONS
As of October 31, 1996 there was an unlimited number of no par value shares
of capital stock authorized for the Fund. Paid in capital at October 31, 1996
was $975,454.
Transactions in capital stock were as follows:
<TABLE>
<CAPTION>
For the period from
November 6, 1995 (Commencement of
Operations) through October 31, 1996
<S> <C> <C>
Shares Amount
------- -------
Shares sold 92,689 $971,640
Shares issued in reinvestment
of dividends 0 0
Shares redeemed (1,893) (21,186)
------ --------
Net increase 90,796 $950,454
====== ========
</TABLE>
NOTE 5. INVESTMENTS
For the period from November 6, 1995 (commencement of operations) through
October 31, 1996, purchases and sales of investment securities, other than
short-term investments, aggregated $1,488,976 and $493,167 respectively. The
gross unrealized appreciation for all securities totaled $137,460 and the gross
unrealized depreciation for all securities totaled $10,719 for a net unrealized
appreciation of $126,741. The aggregate cost of securities for federal income
tax purposes at October 31, 1996 was $977,124.
<PAGE>
CARL DOMINO EQUITY INCOME FUND
Notes to Financial Statements
October 31, 1996
NOTE 6. ESTIMATES
Preparation of financial statements in accordance with generally accepted
accounting principles requires management to make estimates and assumptions that
affect the reported amounts of assets and liabilities and the reported amounts
of revenues and expenses during the reporting period. Actual results could
differ from those estimates.
NOTE 7. RELATED PARTY TRANSACTIONS
The Adviser is not a registered broker-dealer of securities and thus does not
receive commissions on trades made on behalf of the Funds. 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 October 31, 1996, Carl
Domino Associates,L.P., and entities which the Adviser could be deemed to
control or have discretion over owned in aggregate more than 25% of the Fund.
NOTE 8. DISTRIBUTIONS TO SHAREHOLDERS
Dividends of $20,825 from the '95-'96 fiscal year will be declared. This amount
respresents $11,996 of net investment income and $8,829 of short-term capital
gain.
<PAGE>
<TABLE>
<CAPTION>
CARL DOMINO EQUITY INCOME FUND
FINANCIAL HIGHLIGHTS
For a share outstanding throughout the period from
November 6, 1995 (Commencement of Operations)
through October 31, 1996
<S> <C>
Net asset value- beginning of period........................ $10.00
--------
Income from investment operations:
Net investment income....................................... .16
Net gain on investments both realized and unrealized........ 1.87
--------
Total from investment operations............................ 2.03
--------
Less distributions:
Dividends from net investment income........................ 0
Dividends from capital gains................................ 0
--------
Net asset value-end of period............................... $12.03
========
Total Return**............................................... 22.31%
Ratio/supplemental data:
Net assets, end of period (in 000's)......................... 1,122
Ratio of expenses to average net assets** ++................ 1.51%
Ratio of net investment income to average net assets** ++... 1.57%
Portfolio turnover rate...................................... 62.51%
Average Commission rate paid................................. .0604
<FN>
** Annualized, for the period from December 4, 1995 (Commencement of
operations in accordance with the Fund's investment objective) to
October 31, 1996.
++ Expense ratio is net of reimbursement of trustees' fees. Had such
reimbursements not been made, the expense ratio and the net investment
income ratio would have been 1.73% and 1.35%,respectively.
</FN>
</TABLE>
The accompanying notes are an integral part of these financial statements.
<PAGE>
AIT Vision U.S. Equity Portfolio
Dear Fellow Shareholders:
Investment Results - Fiscal Year Ended October 1996
October 1996 represented the close of the first fiscal year for the AIT Vision
U.S. Equity Portfolio (the Fund). Since the Fund's December 28, 1995 inception,
the Fund generated a load adjusted return of 21.2% and a change in net asset
value (NAV) of 26.2% compared to a rise of 17.0% for the S&P 500 Index and
15.7% for the broader Russell 3000 Index. Comparative investment results,
since inception, are graphically displayed below.
Comparative Investment Returns From Inception
AIT Vision Fund - load adjusted 21.2%
AIT Vision Fund - NAV 26.2%
S&P 500 17.0%
[Graph appears here]
The graph depicts a visual comparison between the Fund and the S&P 500 Index.
This graph shows the results of a $10,000 initial investment at December 28,
1995 (date of inception) through October 31, 1996. At October 31, 1996, the
value of the investment (load adjusted) was $12,118 while the S&P 500 was
$11,696.
Past performance is not predictive of future performance. This chart assumes
an initial investment of $10,000 in the Fund and the S&P 500 Index on December
28, 1995 and held through October 31, 1996. The S&P 500 Index is a widely
recognized unmanaged index of common stock prices. Performance figures
include the change in value of the stocks in the Index and reinvestment of
dividends and are not annualized.
<PAGE>
Commentary
During the Fund's initial investment period ending October 1996, the U.S. equity
market provided a favorable environment for us to generate healthy returns for
our investors. The Fund's outperformance of the S&P 500 Index can be
predominantly attributed to the successful individual stock selection resulting
from our advanced modeling techniques. For each stock in the Russell 3000 Index,
we create a model unique to the conditions of each stock. This individual stock
approach allows us to effectively evaluate an electric utility much differently
than a biotechnology company. AIT's computerized stock selection process was
featured on a segment of ABC's Nightline news program during this past year.
The domestic equity market returns have been particularly strong for the past
couple years as inflation has remained subdued and the economy has continued to
expand at a moderate rate. As the economy and corporate earnings slow through a
normal business cycle progression, the U.S. equity markets will be hard pressed
to continue to keep up their recent upward pace. Presently the psychology of the
marketplace has become very fragile and protective of the returns that have been
earned during this unusually complacent environment. Looking forward, we believe
that it will be particularly important to invest in individual companies which
are uniquely successful as opposed to anticipating the continued benefits of a
broadly rising equity market.
Reduction of Fund Expenses
Effective October 28, 1996, the expenses associated with investing in our Fund
were materially revised. The 4% load was completely eliminated and the
expense ratio was lowered from 1.47% annually to 0.70% annually. Each of these
reductions in Fund expenses is a direct savings to the shareholders' investment.
In the long term, these savings can potentially compound to material differences
in shareholder wealth.
Summary
As we closed our initial fiscal year, we were pleased by the returns that the
Fund has generated for its shareholders. It is our hope to continue to provide
such performance in the future. The way we attempt to make this happen is to
continuously strive to improve our investment process. As equity markets
dynamically change through time it is our challenge to keep up by evolving our
research towards better investment solutions.
Thank you for your trust.
Sincerely,
/s/ Douglas W. Case, CFA
Douglas W. Case, CFA
Managing Director of Portfolio Management
Advanced Investment Technology, Inc.
<PAGE>
INDEPENDENT AUDITOR'S REPORT
To The Shareholders and Board of Trustees
The AIT Vision U.S. Equity Portfolio
We have audited the statement of assets and liabilities including the portfolio
of investments, of The AIT Vision U.S. Equity Portfolio (a member of the
Ameriprime Fund Series) as of October 31, 1996, and the related statement of
operations, the statement of changes in net assets, and the financial highlights
for the period from November 6, 1995 (commencement of operations) to October 31,
1996. These financial statements and financial highlights are the responsibility
of the Fund's management. Our responsibility is to express an opinion on these
financial statements and financial highlights 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 financial statements and financial
highlights are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements. Our procedures included confirmation of securities owned as of
October 31, 1996, by correspondence with the custodian and brokers. An audit
also includes assessing the accounting prin ciples used and significant
estimates made by management, as well as evaluating the overall financial
statement presentation. We believe that our audit provides a reasonable basis
for our opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of The
AIT Vision U.S. Equity Portfolio as of October 31, 1996, the results of it's
operations, the changes in it's net assets, and the financial highlights for the
period from November 6, 1995 (commencement of operations) to October 31, 1996 in
conformity with generally accepted accounting principles.
McCurdy & Associates CPA's, Inc.
Westlake, Ohio 44145
November 20, 1996
<PAGE>
<TABLE>
<CAPTION>
AIT VISION U.S. EQUITY PORTFOLIO
SCHEDULE OF INVESTMENTS
October 31, 1996
<C> <S> <C>
Shares Value
- ------ -----
COMMON STOCKS 96.96%
APPAREL 2.69%
400 Liz Clairborne $ 16,900
-------
BANKS 5.70%
400 Charter One Financial Inc. 17,375
200 Mellon Bank Corp. 13,025
100 Wachovia Corp. 5,375
------
35,775
------
BUSINESS MACHINES 4.54%
300 Compaq Computer Corp.* 20,888
600 Tandem Computers* 7,575
------
28,463
------
CHEMICALS 5.22%
200 PPG Industries Inc. 11,400
300 Rohm & Haas Co. 21,412
------
32,812
------
COSMETICS 3.16%
200 Proctor & Gamble Co. 19,800
------
The accompanying notes are an integral part of these financial statements.
<PAGE>
AIT VISION U.S. EQUITY PORTFOLIO
SCHEDULE OF INVESTMENTS
October 31, 1996
Shares Value
- ------ -----
DURABLES 1.64%
200 Harman International Industries Inc. $ 10,275
------
DRUGS 11.70%
500 Alza Corp.* 12,938
300 Amgen Inc.* 18,394
400 Johnson & Johnson 19,700
200 Lilly & Eli 14,100
100 Pfizer Inc. 8,275
------
73,407
------
ELECTRONICS 3.13%
300 Andrew Corp.* 14,625
100 SCI Systems Inc.* 4,975
------
19,600
------
FINANCE 3.37%
300 Franklin Resources Inc. 21,150
------
FOOD 1.77%
200 Vons Companies Inc. 11,075
------
HEALTH 5.04%
500 Healthsouth Corp.* 18,750
200 Medtronic Inc. 12,875
------
31,625
------
The accompanying notes are an integral part of these financial statements.
<PAGE>
AIT VISION U.S. EQUITY PORTFOLIO
SCHEDULE OF INVESTMENTS
October 31, 1996
Shares Value
- ------ -----
HOTEL/RESTAURANTS 1.22%
500 Prime Hospitality Corp.* $ 7,625
------
INTERNATIONAL OIL 6.21%
300 Chevron Corp. 19,725
1,000 Oryx Energy Co. 19,250
------
38,975
------
LEISURE 3.99%
400 Fleetwood Enterprises 13,500
400 Mattel Inc. 11,550
------
25,050
------
MEDIA 1.15%
200 King World Productions Inc.* 7,200
------
MORTAGE 1.90%
300 Green Tree Acceptance 11,888
------
OIL DRILLING AND SERVICES 9.00%
200 Atlantic Richfield Co. 26,500
200 Devon Energy Corp. 6,975
800 Reading & Bates Corp. 23,000
------
56,475
------
PAPER 1.20%
100 Georgia Pacific Corp. 7,500
------
The accompanying notes are an integral part of these financial statements.
<PAGE>
AIT VISION U.S. EQUITY PORTFOLIO
SCHEDULE OF INVESTMENTS
October 31, 1996
Shares Value
- ------ -----
PR GOODS 6.38%
100 BMC Industries Inc. $ 2,962
700 Dresser Industries Inc. 23,012
300 Precision Castparts Co. 14,025
------
39,999
------
RET OT 1.75%
200 Home Depot Inc. 10,950
------
SERVICES 9.70%
200 Computers Association International 11,825
100 HBO & Co. 6,013
400 Oracle Systems Corp.* 16,925
300 Parametric Technology* 14,662
200 Paychex Inc. 11,400
------
60,825
------
SOAPS 4.40%
300 Colgate Palmolive Co. 27,600
------
THRIFTS 2.10%
400 Coast Savings Financial Inc. 13,150
------
The accompanying notes are an integral part of these financial statements.
<PAGE>
AIT VISION U.S. EQUITY PORTFOLIO
SCHEDULES OF INVESTMENTS
October 31, 1996
TOTAL COMMON STOCKS (COST $573,984) $ 608,119
-------
TOTAL INVESTMENTS (Cost $573,984) 96.96% 608,119
Other Assets less Liabilities 3.04% 19,040
------ --------
TOTAL NET ASSETS 100.00% $627,159
======= ========
<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
October 31, 1996
<S> <C>
ASSETS:
Investment in common stock at market value
(identified cost--$573,984)(Note 1)............................. $608,119
Cash.............................................................. 14,722
Receivable for securities sold.................................... 39,099
Dividends and interest receivable................................. 480
--------
TOTAL ASSETS.................................... 662,420
--------
LIABILITIES:
Payable for securities purchased................................... 34,150
Accrued advisory fee............................................... 777
Accrued trustees' fees............................................. 334
--------
TOTAL LIABILITIES............................... 35,261
--------
NET ASSETS (equivalent to $12.62 per share based on
49,693 shares of common stock outstanding)--(Note 4)........ $627,159
========
NET ASSETS CONSIST OF:
Paid in capital (Note 4 and 7)................................... $510,186
Accumulated undistributed net realized gain/(loss) from security
transactions.................................................... 82,838
Net unrealized appreciation/(depreciation) of investments........ 34,135
--------
NET ASSETS OCTOBER 31, 1996........................................ $627,159
========
NET ASSET VALUE, REDEMPTION PRICE AND OFFERING
PRICE PER SHARE........................................... $ 12.62
========
</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 October 31, 1996
<S> <C>
INVESTMENT INCOME:
Dividends................................................. $4,763
--------
TOTAL INVESTMENT INCOME................................ 4,763
--------
OPERATING EXPENSES:
Investment advisory fee (Note 3).......................... 5,944
Trustees' fees............................................ 1,685
--------
TOTAL OPERATING EXPENSES............................... 7,629
--------
NET INVESTMENT INCOME/(LOSS)........................... (2,866)
--------
NET REALIZED AND UNREALIZED GAINS/(LOSSES) ON
INVESTMENTS:
Net realized gain/(loss) on security transactions........... 82,838
Net change in unrealized appreciation/(depreciation) on
investments............................................... 34,135
--------
NET GAIN/(LOSS) ON INVESTMENTS.............................. 116,973
--------
NET INCREASE/(DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS................................. $114,107
========
</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 from November 6, 1995
(Commencement of Operations) through October 31, 1996
<S> <C>
INCREASE/(DECREASE) IN NET ASSETS FROM OPERATIONS:
Net investment income/(loss)..................................... $(2,866)
Net realized gain/(loss) from securities transactions............ 82,838
Net change in unrealized appreciation/(depreciation) of investments
during the period............................................... 34,135
-------
NET INCREASE/(DECREASE) IN NET ASSETS FROM
OPERATIONS.................................................... 114,107
--------
DISTRIBUTION TO SHAREHOLDERS:
Net investment income........................................... 0
Realized gain................................................... 0
--------
0
--------
FUND SHARE TRANSACTIONS:
Shares sold...................................................... 536,013
Shares issued in reinvestment of dividends....................... 0
Shares redeemed.................................................. (47,961)
--------
TOTAL CAPITAL STOCK 488,052
--------
NET INCREASE/( DECREASE) IN NET ASSETS 602,159
--------
NET ASSETS:
Beginning of period............................................. 25,000
--------
End of period.................................................... $627,159
========
</TABLE>
The accompanying notes are an integral part of these financial statements.
<PAGE>
AIT VISION U.S. EQUITY PORTFOLIO
Notes to Financial Statements
October 31, 1996
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
October 31, 1996
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.Discounts and premiums on securities purchased are amortized over the life
of the respective securities.
NOTE 3. FEES AND OTHER TRANSACTIONS WITH AFFILIATES
The Fund retains Advanced Investment Technology, Inc. (the "Adviser") to
manage the Fund's investments. Dean S. Barr is the controlling shareholder of
the Adviser. Douglas W. Case, CFA, Director of Equity Portfolio Mangement, Dean
S. Barr, Chairman and Chief Investment Officer, and Susan L. Reigel, Portfolio
Manager, are primarily responsible for the day to day management of the
Fund's portfolio. Prior to October 29, 1996, the Fund was managed by 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 1.47% of the average daily net
assets of the Fund. 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 October 31, 1996, the Adviser has received a fee of $5,944 from the
Fund.
<PAGE>
AIT VISION U.S. EQUITY PORTFOLIO
Notes to Financial Statements
October 31, 1996
NOTE 4. CAPITAL SHARE TRANSACTIONS
As of October 31, 1996 there was an unlimited number of no par value shares
of capital stock authorized for the Fund. Paid in capital at October 31, 1996
was $510,186.
Transactions in capital stock were as follows:
<TABLE>
For the period from
November 6, 1995 (Commencement of
Operations) through October 31, 1996
<S> <C> <C>
Shares Amount
------ ------
Shares sold 51,315 $536,013
Shares issued in reinvestment
of dividends 0 0
Shares redeemed (4,122) (47,961)
-------- ---------
Net increase 47,193 $488,052
======== =========
</TABLE>
NOTE 5. INVESTMENTS
For the period from November 6, 1995 (commencement of operations) through
October 31, 1996, purchases and sales of investment securities, other than
short-term investments, aggregated $1,670,212 and $1,096,228 respectively. The
gross unrealized appreciation for all securities totaled $39,785 and the gross
unrealized depreciation for all securities totaled $5,650 for a net unrealized
appreciation of $34,135 The aggregate cost of securities for federal income tax
purposes at October 31, 1996 was $573,984.
<PAGE>
AIT VISION U.S. EQUITY PORTFOLIO
Notes to Financial Statements
October 31, 1996
NOTE 6. ESTIMATES
Preparation of financial statements in accordance with generally accepted
accounting principles requires management to make estimates and assumptions that
affect the reported amounts of assets and liabilities and the reported amounts
of revenues and expenses during the reporting period. Actual results could
differ from those estimates.
NOTE 7. RECLASSIFICATIONS
In accordance with SOP 93-2, The Fund has recorded a reclassification in the
capital accounts. As of October 31, 1996, The Fund recorded permanent book/tax
differences of $(2,866) from undistributed net investment income to paid in
capital. This reclassification has no impact on the net asset value of The Fund
and is designed generally to present undistributed income and realized gains on
a tax basis which is considered to be more informative to the shareholder.
NOTE 8. RELATED PARTY TRANSACTIONS
The Adviser is not a registered broker-dealer of securities and thus does not
receive commissions on trades made on behalf of the Funds. 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 October 31, 1996, LBS
Capital Management, Inc., and entities which the Adviser could be deemed to
control or have discrection over owned in aggregate more than 25% of the Fund.
NOTE 9. DISTRIBUTIONS TO SHAREHOLDERS
Dividends of $83,029 from the fiscal year will be declared. This amount
represents $0 of net investment income and $83,029 of short-term capital gain.
<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 October 31, 1996
<S> <C>
Net asset value- beginning of period............................ $10.00
--------
Income from investment operations:
Net investment income/(loss).................................... (.07)
Net gain/(loss) on investments both realized and unrealized..... 2.69
--------
Total from investment operations................................ 2.62
--------
Less distributions:
Dividends from net investment income............................ 0
Dividends from capital gains.................................... 0
--------
Net asset value- end of period.................................. $12.62
========
Total Return**.................................................. 31.03%
Ratio/supplemental data:
Net assets, end of period (in 000's).......................... 627
Ratio of expenses to average net assets**..................... 1.87%
Ratio of net investment income to average net assets**........ ( .70)%
Portfolio turnover rate....................................... 238.63%
Average Commission rate paid.................................. .0471
<FN>
** Annualized, for the period from December 28, 1995 (Commencement of
operations in accordance with the Fund's investment objective) to
October 31, 1996.
</FN>
</TABLE>
The accompanying notes are an integral part of these financial statements.
<PAGE>
AIT VISION U.S. EQUITY PORTFOLIO
SHAREHOLDER CONSENTS
October 31, 1996
On July 26, 1996, approval on behalf of a majority of the shares of the
Fund was obtained for the selection of Advanced Investment Technology, Inc.
("AIT") as the new investment adviser to the Fund. On July 26, 1996, 31,429.6396
shares of the 48,825.290 shares outstanding of the Fund approved the
above-described change. The selection of AIT as investment adviser took effect
on October 29, 1996.
<PAGE>
December, 1996
Dear Fellow Shareholders:
Investment Results - Fiscal Year Ended October 1996
The GLOBALT Growth Fund (the "Fund") ended its first October fiscal year with a
24.8% total return in the eleven months since inception December 1, 1995,
surpassing an 18.9% gain for the S&P 500 Index during the same time period.
The Fund declared a capital gains distribution of 17 cents on December 26, 1996.
Investment results since inception have been as follows:
<TABLE>
<S> <C> <C> <C> <C>
Comparative March June September Since
Investment Returns (a) Qtr '96 Qtr '96 Qtr '96 Inception (b)
GLOBALT Growth Fund 7.3% 3.0% 4.2% 24.8%
S&P 500 Index (c) 5.4% 4.5% 3.1% 18.9%
<FN>
(a) Past performance is not predictive of future performance.
(b) From December 1, 1995 and is not annualized.
(c) The S&P 500 Index is an unmanaged index of 500 selected common
stocks, most of which are listed on the New York Stock Exchange.
The Index is adjusted for dividends and weighted toward stocks
with large market capitalizations.
</FN>
</TABLE>
[Graph appears here]
This graph depicts the comparison of investment returns for the Fund versus the
S&P 500 Index. The graph depicts the investment return of a $25,000 initial
investment from December 1, 1995 until October 31, 1996. At October 31, 1996,
the Fund's value is $31,195 versus $29,718 for the S&P 500.
<PAGE>
From a standing start, the Fund ended October 1996 with $3,443,076 million in
assets and more than 38 shareholders. We welcome our first-year shareholders
and look forward to furthering your investment objectives. GLOBALT principals
are also investors in the Fund.
Investment Approach
To review, our approach to managing the GLOBALT Growth Fund is to achieve
long-term growth of capital by investing in U.S. companies which we believe
offer superior growth potential through exposure to rapidly growing foreign
markets. The Fund only invests in stocks of U.S. companies that are expected to
derive at least 20% of their revenues outside the U.S. Once we construct
portfolios, the connection you have to the global marketplace, by being an
investor in the GLOBALT Growth Fund, is much greater: the portfolio derives at
least 50% of revenues from outside the U.S.
Commentary and Outlook
1996 has been an exciting year for investors and stock market returns have been
well above average. At the end of July, no one knew whether the corrective
phase had run its course. Now, after the market has recovered its losses and
gone on to new highs, there still is little consensus - just a lot of anxiety
and volatility.
In our quarterly reports to our firm's clients over the past six years, we
have not wavered in our positive position on the equity markets and U.S.
multinationals in particular. Since we are often asked whether the market is
"too high", we want to define our long-term position for you.
1. Our outlook remains that the U.S. economy has undergone major structural
changes (some forced upon us by foreign competition) that have resulted
in higher productivity, lower prices, lower inflation, stronger exports
and higher corporate profits.
Investment Implication: It follows that the economy is fundamentally
sound and more stable than in the '70s and early '80s.
2. Growth outside the U.S. in emerging markets (80% of the world's
population) will be faster than the U.S. economy's. U.S. companies are
highly competitive in world markets and have become quite successful in
penetrating these markets. Likewise, our exports are strong.
Investment Implication: Emerging countries are 30 years behind the U.S.
in their rate of consumption and want U.S. goods. Globally-competitive
U.S. companies in GLOBALT's New Growth Universe are growing faster due to
their global success, and their earnings are less dependent on the
domestic economy.
3. Inflation, worldwide, is tame, including in the U.S.
<PAGE>
Investment Implication: This has obvious positive implications for
interest rates.
4. The supply/demand relationship for equities is very positive despite
record levels of initial public offerings (IPOs). Record inflows from
401(k) plans and corporate stock buy-backs more than offset the stock
added by new issues. Company buy-backs alone retired more than $60 billion
in stock last year.
Investment Implication: Increased demand and a static supply of stocks
still bode well for the stock market.
5. Fiscal policy and trends in the federal deficit are improving markedly.
1996 was the third consecutive year of significantly lower deficits. The
current level is roughly one-third the peak in 1993.
Investment Implication: We are no longer dependent on monetary (interest
rate) policy to control the economy and inflation. The "stop-go" monetary
policy employed in the '70s and '80s regularly killed price/earnings (p/e)
ratios and thus stock prices. When has that last happened?
6. Investors have a very different mindset today. Depression-era mentality
is giving way to Baby Boomer optimism.
Investment Implication: The public has recognized the greater stability
of the U.S. economy and concluded that stocks are clearly the best
long-term investment - and they are acting on that belief. That is
partially where the "buy-on-the-pullbacks" notion is based.
Although the market overall is not excessively valued, neither is it
undervalued. Accordingly, we expect continued high volatility - perhaps a
rolling, rotational adjustment as occurred in 1995 and early 1996 and that
affects stock groups differently.
We do believe, however, that the factors discussed above are slowly and
persistently raising the valuation on equities above levels of the past several
decades. Although not well understood or accepted, they help explain the
market's continued strength. Consequently, we believe market corrections will
be shallower and shorter than in recent periods.
<PAGE>
Lacking evidence to the contrary, we will view volatility and corrections as
additional opportunities to increase the potential return of the GLOBALT Growth
Fund. In a period of slower profit growth, growth stocks should continue to
outperform value stocks. Whereas the best returns in recent months have been in
the fastest-growing companies, the best returns in this environment may be found
in growth stocks with steady, visible earnings. Many of these are the companies
that GLOBALT favors as the New Growth stocks because they are globally
competitive.
Sincerely,
/s/ Angela Z. Allen
Angela Z. Allen
President and Chief Executive Officer
AZA/gl
Fund Investment
Shares of the Fund are sold on a continuous basis, and you may invest any amount
you choose as often as you wish, subject to a minimum initial investment of
$25,000 and minimum subsequent investments of $5,000 ($2,000 for IRA accounts).
Shares may be also be purchased through a broker dealer or other financial
institution authorized by the Fund's distributor (investors may be charged a fee
for this service). Purchases can be made by mail or by bank wire (please see
prospectus for more information).
<PAGE>
INDEPENDENT AUDITOR'S REPORT
To The Shareholders and Board of Trustees
The Globalt Growth Fund
We have audited the statement of assets and liabilities including the portfolio
of investments, of The Globalt Growth Fund (a member of the Ameriprime Fund
Series) as of October 31, 1996, and the related statement of operations, the
statement of changes in net assets, and the financial highlights for the period
from December 1, 1995 (commencement of operations) to October 31, 1996. These
financial statements and financial highlights are the responsibility of the
Fund's management. Our responsibility is to express an opinion on these
financial statements and financial highlights based on our audit.
We conducted our audit in accordance with generally accepted audit- ing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements and financial
highlights are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements. Our procedures included confirmation of securities owned as of
October 31, 1996, by correspondence with the custodian and brokers. An audit
also includes assessing the accounting prin ciples used and significant
estimates made by management, as well as evaluating the overall financial
statement presentation. We believe that our audit provides a reasonable basis
for our opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of The
Globalt Growth Fund as of October 31, 1996, the results of it's operations, the
changes in it's net assets, and the financial highlights for the period from
December 1, 1995 (commencement of operations) to October 31, 1996 in con formity
with generally accepted accounting principles.
McCurdy & Associates CPA's, Inc.
Westlake, Ohio 44145
November 20, 1996
<PAGE>
<TABLE>
<CAPTION>
GLOBALT GROWTH FUND
SCHEDULE OF INVESTMENTS
October 31, 1996
<C> <S> <C>
Shares Value
- ------ -----
COMMON STOCKS 95.13%
BUSINESS EQUIPMENT/SERVICES 6.49%
1,100 Air Express International $33,275
750 Electronic Data Systems Corp* 33,750
650 Interpublic Group 31,525
1,050 Omnicom Group 52,238
1,000 Sabre Group* 30,500
1,250 VeriFone Inc* 42,031
--------
223,319
--------
CAPITAL GOODS 10.47%
1,300 Black & Decker Corp 48,588
750 Caterpillar Inc. 51,469
1,150 Fluor Corp. 75,325
700 Foster Wheeler Corp. 28,700
1,000 General Electric Corp. 96,750
800 Kennametal Inc. 27,200
900 Molex Inc. 32,400
--------
360,431
--------
The accompanying notes are an integral part of these financial statements.
<PAGE>
GLOBALT GROWTH FUND
SCHEDULE OF INVESTMENTS
October 31, 1996
Shares Value
- ------ -----
CONSUMER NON-DURABLES 14.17%
1,100 Avon Products Inc. $ 59,675
1,150 Coca-Cola Co. 58,075
500 Colgate-Palmolive Co. 46,000
550 CPC International Inc. 43,381
520 Eastman Kodak 41,470
800 Estee Lauder 34,400
400 Nike Inc. 23,550
1,600 Pepsico Inc. 47,400
800 Pioneer Hi-Bred International 53,700
500 Proctor & Gamble Co. 49,500
600 Tupperware 30,825
--------
487,976
--------
CONSUMER SERVICES 5.09%
2,200 Coleman Co.* 29,150
400 Disney Walt Co. 26,350
1,700 Mattel Inc. 49,088
1,900 Time Warner Inc. 70,773
--------
175,361
--------
The accompanying notes are an integral part of these financial statements.
<PAGE>
GLOBALT GROWTH FUND
SCHEDULE OF INVESTMENTS
Shares Value
- ------ -----
ENERGY 8.59%
450 Amoco Corp $ 34,088
1,800 Apache Corp 63,900
800 Halliburton Co 45,300
500 Mobil Corp 58,375
1,500 Reading & Bates Corp 43,125
500 Texaco 50,813
--------
295,600
--------
FINANCIAL SERVICES 11.75%
1,100 AFLAC Inc. 44,138
1,300 American Express 61,100
600 American International Group 65,175
400 BankAmerica Corp. 36,600
450 Citicorp 44,550
500 Franklin Resources. 35,250
600 Marsh & McLennan Co. 62,475
1,100 Morgan Stanley Group 55,275
--------
404,563
--------
HEALTH CARE 9.72%
450 Bristol Meyers Squibb 47,588
600 Centocor Inc. * 17,625
950 Guidant Corp. 43,819
1,212 Johnson & Johnson 59,691
450 Lilly Eli & Co. 31,725
800 Merck & CO. 59,300
450 Pfizer Inc. 37,238
900 United States Surgical Corp. 37,688
--------
334,672
--------
The accompanying notes are an integral part of these financial statements.
<PAGE>
GLOBALT GROWTH FUND
SCHEDULE OF INVESTMENTS
October 31, 1996
Shares Value
- ------ -----
RAW MATERIALS 6.03%
650 Air Products & Chemicals Inc. $ 39,000
400 Dupont DeNemours Co. 37,100
1,100 IMC Global. 41,250
1,000 Monsanto Co. 39,625
800 Morton International Inc. 31,500
750 Pall Corp 19,219
--------
207,694
--------
RETAIL 2.60%
1,250 McDonalds Corp. 55,469
1,000 Toys "R" Us * 33,875
--------
89,344
--------
SHELTER 2.36%
700 International Paper Co. 29,925
550 Kimberly Clark Corp. 51,288
--------
81,213
--------
The accompanying notes are an integral part of these financial statements.
<PAGE>
GLOBALT GROWTH FUND
SCHEDULE OF INVESTMENTS
October 31, 1996
Shares Value
- ------ -----
TECHNOLOGY 15.50%
800 3 Com Corp.* $ 54,100
300 Cascade Communication* 21,788
1,050 Cisco Systems Inc.* 64,969
925 Computer Associates International 54,691
400 Hewlett Packard Co. 17,650
650 Intel Corp. 71,419
250 International Business Machines 32,250
1,100 International Rectifier Corp 13,613
340 Lucent Technologies 15,994
300 Microsoft Corp.* 41,175
400 Motorola Inc 18,400
375 Oracle Corp*. 15,867
300 Rational Software* 11,513
750 Sun Microsystems* 45,750
500 U S Robotics 31,438
500 Xerox Corp. 23,188
--------
533,801
--------
TRANSPORTATION 2.36%
400 AMR Corp. 33,600
500 Boeing Co. 47,688
--------
81,288
--------
The acompanying notes are an integral part of these financial statements.
<PAGE>
GLOBALT GROWTH FUND
SCHEDULE OF INVESTMENTS
October 31, 1996
Shares Value
- ------ -----
TOTAL COMMON STOCKS (cost $2,967,081)..........$ 3,275,262
TOTAL INVESTMENTS 95.13% 3,275,262
(Cost $2,967,081)
Other Assets less liabilities 4.87% 167,814
------- -----------
TOTAL NET ASSETS 100.00% $ 3,443,076
======= ===========
<FN>
* Non-income producing securities.
</FN>
</TABLE>
The accompanying notes are an integral part of these financial statements.
<PAGE>
<TABLE>
<CAPTION>
GLOBALT GROWTH FUND
STATEMENT OF ASSETS AND LIABILITIES
October 31, 1996
<S> <C>
ASSETS:
Investment in common stock at market value
(identified cost--$2,967,081)(Note 1).......................... $3,275,262
Cash............................................................. 104,982
Receivable for securities sold.................................. 63,469
Dividends and interest receivable................................ 3,018
-----------
TOTAL ASSETS.................................. 3,446,731
-----------
LIABILITIES:
Accrued advisory fee............................................. 3,322
Accrued trustees' fees........................................... 333
-----------
TOTAL LIABILITIES............................. 3,655
-----------
NET ASSETS (equivalent to $12.48 per share based on
275,916 shares of common stock outstanding)--(Note 4).......... $ 3,443,076
===========
NET ASSETS CONSIST OF:
Paid in capital (Note 4)........................................ $ 3,081,294
Undistributed net investment income/(loss)...................... 2,033
Accumulated undistributed net realized gain/(loss) from
security transactions.......................................... 51,568
Net unrealized appreciation/depreciation on investments.......... 308,181
-----------
NET ASSETS OCTOBER 31, 1996...................................... $ 3,443,076
===========
NET ASSET VALUE, REDEMPTION AND OFFERING
PRICE PER SHARE ........................................ $ 12.48
========
</TABLE>
The accompanying notes are an integral part of these financial statements.
<PAGE>
<TABLE>
<CAPTION>
GLOBALT GROWTH FUND
STATEMENT OF OPERATIONS
For the period from December 1, 1995
(Commencement of Operations) through October 31, 1996
<S> <C>
INVESTMENT INCOME:
Dividends..................................................... $ 23,719
---------
TOTAL INVESTMENT INCOME.................................... 23,719
---------
OPERATING EXPENSES:
Investment advisory fee (Note 3).............................. 21,686
Trustees' fees................................................ 1,685
---------
TOTAL OPERATING EXPENSES BEFORE REIMBURSEMENT 23,371
---------
REIMBURSED TRUSTEES' FEES.................................. 1,685
---------
TOTAL OPERATING EXPENSES.............................. 21,686
---------
NET INVESTMENT INCOME/(LOSS)....................... 2,033
---------
NET REALIZED AND UNREALIZED GAIN/(LOSS) ON INVESTMENTS:
Net realized gain/(loss) on security transactions............... 51,568
Net change in unrealized appreciation/(depreciation) on
investments................................................... 308,181
---------
NET GAIN/(LOSS) ON INVESTMENTS................................ 359,749
---------
NET INCREASE/(DECREASE) IN NET ASSETS, RESULTING
FROM OPERATIONS.............................................. $ 361,782
=========
</TABLE>
The accompanying notes are an integral part of these financial statements.
<PAGE>
<TABLE>
<CAPTION>
GLOBALT GROWTH FUND
STATEMENT OF CHANGES IN NET ASSETS
For the period from December 1, 1995
(Commencement of Operations) through October 31, 1996
<S> <C>
INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS:
Net investment income/(loss)...................................... $ 2,033
Net realized gain/(loss) from securities transactions............. 51,568
Net change in unrealized appreciation/(depreciation) of investments
during the period............................................... 308,181
-----------
NET INCREASE/(DECREASE) IN NET ASSETS FROM
OPERATIONS...................................................... 361,782
-----------
DISTRIBUTION TO SHAREHOLDERS:
Net investment income............................................. 0
Realized gain..................................................... 0
-----------
0
-----------
FUND SHARE TRANSACTIONS:
Shares sold....................................................... 3,056,354
Shares issued in reinvestment of dividends........................ 0
Shares redeemed................................................... (60)
-----------
TOTAL CAPITAL STOCK 3,056,294
-----------
NET INCREASE/(DECREASE) IN NET ASSETS 3,418,076
-----------
NET ASSETS:
Beginning of period............................................... 25,000
-----------
End of period, including undistributed net investment income
of $2,033........................................................ $ 3,443,076
===========
</TABLE>
The accompanying notes are an integral part of these financial statements.
<PAGE>
GLOBALT GROWTH FUND
NOTES TO FINANCIAL STATEMENTS
October 31, 1996
1. ORGANIZATION
The GLOBALT Growth Fund Inc. (the"Fund") was organized as a series of the
AmeriPrime Funds, an Ohio business trust (the "Trust"), on October 20, 1995 and
commenced operations on December 1, 1995. The Trust is registered under the
Investment Company Act of 1940, as amended, as a diversified, 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 Valuation- 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 values 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 instiutional-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 restriced 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>
GLOBALT GROWTH FUND
NOTES TO FINANCIAL STATEMENTS
October 31, 1996
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. Discounts and premiums on securities purchased are amortized
over the life of the respective securities.
NOTE 3. FEES AND OTHER TRANSACTIONS WITH AFFILIATES
The Fund retains GLOBALT , Inc. (the "Adviser") to manage the Fund's
investments. The Adviser was orgainzed as a Georgia Corporation in 1990.
Angela Allen, President of the Adviser, and Samuel Allen, Chairman of the
Adviser, are the controlling shareholders of GLOBALT, Inc. The investment
decisions for the Fund are made by a committee of the Adviser, which is
primarily responsible for the day to day management 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 person trustees and extraordinary
expenses. The Adviser is voluntarily reimbursing the Fund for trustees fees.
There is no assurance that such reimbursement will continue in the future. 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 1.17% of the average daily net
assets of the Fund. It should be noted that most investment companies pay
their own operating expenses directly, while the Fund's expenses, except those
specified above, are paid by the Adviser. For the period from December 1, 1995
through October 31, 1996, the Adviser has received a fee of $21,686 from the
Fund.
<PAGE>
GLOBALT GROWTH FUND
NOTES TO FINANCIAL STATEMENTS
October 31, 1996
NOTE 4. CAPITAL SHARE TRANSACTIONS
As of October 31, 1996 there was an unlimited number of no par value
shares of capital stock authorized for the Fund. Paid in capital at
October 31, 1996 was $3,081,294.
Transactions in capital stock were as follows:
For the period from December 1, 1995
(Commencement of Operations) through
October 31, 1996
<TABLE>
<S> <C> <C>
Shares Amount
------ ------
Shares sold 273,421 $3,056,354
Shares issued in reinvestment
of dividends 0 0
Shares redeemed (5) (60)
--------- ----------
Net Increase 273,416 $3,056,294
======== =========
</TABLE>
NOTE 5. INVESTMENTS
For the period from December 1, 1995 (commencement of operations) through
October 31, 1996, purchases and sales of investment securities, other than
short-term investments, aggregated $4,244,773 and $1,277,692, respectively.
The gross unrealized appreciation for all securities totaled $371,250 and the
gross unrealized depreciation for all securities totaled $63,069 for a net
unrealized appreciation of $308,181. The aggregate cost of securities for
federal income tax purposes at October 31, 1996 was $2,967,081.
<PAGE>
GLOBALT GROWTH FUND
NOTES TO FINANCIAL STATEMENTS
October 31, 1996
NOTE 6. ESTIMATES
Preparation of financial statements in accordance with generally accepted
accounting principles requires management to make estimates and assumptions
that affect the reported amounts of assets and liabilities and the reported
amounts of revenues and expenses during the reporting period. Actual results
could differ from those estimates.
NOTE 7. DISTRIBUTIONS TO SHAREHOLDERS
Dividends of $54,565 from the '95-'96 fiscal year will be declared. This amount
represents $2,033 of net investment income and $52,532 of short-term capital
gain.
<PAGE>
<TABLE>
<CAPTION>
GLOBALT GROWTH FUND
FINANCIAL HIGHLIGHTS
For a share outstanding throughout the period
from December 1, 1995 (Commencement of Operations)
through October 31, 1996
<S> <C>
Net asset value- beginning of period............................. $10.00
------
Income from investment operations:
Net investment income/(loss)..................................... .01
Net gain/(loss) on investments both realized and unrealized...... 2.47
------
Total from investment operations................................. 2.48
------
Less distributions:
Dividends from net investment income............................. 0
Dividends from capital gains..................................... 0
------
Net asset value- end of period................................... $12.48
======
Total Return**................................................... 27.01%
Ratios/Supplemental data:
Net assets, end of period (in 000's)............................. 3,443
Ratio of expenses to average net assets** ++.................... 1.16%
Ratio of net investment income to average net assets** ++ ...... .11%
Portfolio turnover rate.......................................... 66.42%
Average Commission rate paid..................................... .0740
<FN>
** Annualized
++Expense ratio is net of reimbursement of trustees' fees. Had such
reimbursements not been made, the expense ratio and the net investment
income ratio would have been 1.25% and 0.02%, respectively.
</FN>
</TABLE>
The accompanying notes are an integral part of these financial statements.
<PAGE>
PORTFOLIO MANAGER'S LETTER
December 17, 1996
Dear Shareholder:
We would like to welcome you as a fellow shareholder of the Maxim Contrarian
Fund. As of October 31, 1996, the Fund was six months old. For the period from
May 1, 1996 (commencement of operations) through October 31, 1996, the Fund lost
7.9% versus a comparative benchmark index return of -3.9% (70% S&P 400 Midcap
Index and 30% Philadelphia Gold and Silver Index) Past performance is not
predictive of future success. The six months ended in October included a violent
sell-off of mid-cap stocks of over 12% from early June to mid July and a drop of
almost 19% in the share prices of precious metals stocks. Clearly not a very
favorable period to begin a fund which invests in these types of issues.
Despite these disappointing short-term results, we are optimistic about the
future potential of our Fund which is among the most flexible of mutual funds
offered in America. We have developed the tables below to share with you the
investments held by the Fund and how they contributed to the results achieved
to date.
<TABLE>
<S> <C> <C> <C>
Earnings Growth
Largest Holdings % of Fund Last Quarter P/E Ratio
Nevsun Resources Ltd. 15.3 NM NM
Dell Computer Corp. 4.6 +108% 19
Kaydon Corp. 4.1 +34% 15
Worldcom Inc. 3.6 +51% 24
Balchem Corp. 3.5 +31% 14
<FN>
NM=Not Meaningful
</FN>
</TABLE>
Largest Gains
Dell Computer Corp. +58%
3Com Corp. +49%
Manhattan Minerals Corp. +37%
Arakis Energy Corp. +37%
SunAmerica Inc. +30%
Largest Losses
Castle Rock Exploration Corp. -- Voisey Bay -77%
Canadian States Resources, Inc. -- Voisey Bay -72%
Cartaway Resources Corp. -- Voisey Bay -71%
Banro Resource Corporation -- Zaire -46%
JLG Industries Inc. -28%
As you can see, when we have been right, we have been very right. When we have
been wrong, we have been quite wrong. In choosing companies in which to invest,
we prefer to own firms which have low or no debt and significant management
ownership of stock. We also look to find companies whose earnings are growing at
a rate equal to or in excess of its share price to earnings ratio. As you can
see in the table above which lists the largest holdings, these companies
(excepting Nevsun) are trading at favorable prices compared to their earnings
growth rate. Ultimately, share prices will reflect the earnings of the company.
Therefore, we attempt to own companies with consistent and above average
earnings growth rates.
In addition to rapidly growing companies, we also have chosen to invest in
companies involved in natural resources. Our largest holding, Nevsun Resources,
is a precious metals exploration company with properties in Mali and Ghana,
Africa. It has been a personal holding of mine (no pun intended) for about three
years. In that time, its share price has increased more than 800%, but we
believe that at current prices it is only trading at 50% of its real value. We
believe that it will either be acquired or will enter into a joint venture
relationship with a major mining company in the next twelve months. In either
case, we expect that its share price will rise significantly in the next year.
<PAGE>
The underperforming natural resource stocks of the Fund are primarily small
positions which own property rights in an area of Newfoundland, Canada known as
Voisey Bay. The Voisey Bay region represents the location of the world's largest
nickel deposit which was discovered by Diamond Fields Resources Inc. Diamond
Fields share price was $0.04 in 1992 and rose to $43.00 in August, 1996 when it
was acquired by Inco, Ltd., the largest nickel processor in the world. We don't
know who will make the next major discovery in the area, so we have purchased
small amounts of several in the hope that one may repeat a small portion of the
success of Diamond Fields. Unfortunately, due to the very inclement climate of
that area of the world, when the weather becomes poor and drilling ceases for
the year, share prices fall until warm weather arrives and a steady stream of
drilling results and press releases can begin. We expect each of these issues to
recoup all of its losses by spring.
Banro Resource Corporation is a gold production and exploration company which
has the unfortunate luck of being located in Zaire. As you probably know, an
ethnic civil war broke out and caused the share price of the company to fall 79%
from its high. Fortunately, the property owned by the company is located on the
complete opposite end of the country. The fighting seems to have ended, and the
benefit of precious metals companies is that the product of the company is in
the ground and is unaffected by wars. Banro has been operating in Zaire for more
than 90 years and, therefore, has seen many changes in the government. In
addition, in a country with few large employers, they have more than 5,000
employees. We believe that as some weeks of stability pass, we may see the price
of the shares rise as much as 200% from current levels.
In addition to the two primary approaches of the fund, rapid earnings growth and
natural resource companies, when it is deemed appropriate we will position the
Fund to protect against the risk of a rapid sell-off in the stock market. As I
am sure you are well aware, America is experiencing the longest running bull
market in its history without a significant correction. Valuations are at levels
never before seen. Traditional measures of valuation which normally represent
warning signs to past market declines have been shoved aside as investors
undertake a buying panic. It is clear that the market's behavior could be
compared to trying to hold a beach ball underwater. Because we believe that a
significant risk exists that the U.S. stock market may decline sharply with
little warning in the near future, we have been purchasing portfolio insurance
to protect the Fund. As this letter is written, about 75% of the Fund is hedged
against a market decline.
In closing, as the largest shareholder of the Fund, my goals are the same as
yours. The style in which we manage the Fund has been extremely rewarding to me
in the past, and we believe that it will prove to be rewarding to the Fund in
the future. As the IRA season approaches, we would encourage you to consider
adding to your investment in the fund on a regular basis and invite your friends
and other members of your family to join us as fellow shareholders. The small
size of our Fund and its unique structure permit us to take advantage of
situations unlike most other funds and should prove rewarding over time. We
thank you for the confidence and trust that you have placed in us.
Sincerely,
/s/ Kenneth M. Holeski
Kenneth M. Holeski
Portfolio Manager
Past performance is not predictive of future performance or success.
<PAGE>
INDEPENDENT AUDITOR'S REPORT
To The Shareholders and Board of Trustees
The Maxim Contrarian Fund
We have audited the statement of assets and liabilities including the portfolio
of investments, of The Maxim Contrarian Fund (a member of the Ameriprime Fund
Series) as of October 31, 1996, and the related statement of operations, the
statement of changes in net assets, and the financial highlights for the period
from May 2, 1996 (commencement of operations) to October 31, 1996. These
financial statements and financial highlights are the responsibility of the
Fund's management. Our responsibility is to express an opinion on these
financial statements and financial highlights 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 financial statements and financial
highlights are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements. Our procedures included confirmation of securities owned as of
October 31, 1996, by correspondence with the custodian and brokers. An audit
also includes assessing the accounting prin ciples used and significant
estimates made by management, as well as evaluating the overall financial
statement presentation. We believe that our audit provides a reasonable basis
for our opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of The
Maxim Contrarian Fund as of October 31, 1996, the results of it's operations,
the changes in it's net assets, and the financial highlights for the period from
May 2, 1996 (commencement of operations) to October 31, 1996 in conformity with
generally accepted accounting principles.
McCurdy & Associates CPA's, Inc.
Westlake, Ohio 44145
November 20, 1996
<PAGE>
<TABLE>
<CAPTION>
MAXIM CONTRARIAN FUND
SCHEDULE OF INVESTMENTS
October 31, 1996
<C> <S> <C>
Shares Value
- ------ -----
COMMON STOCKS 90.57%
CHEMICAL 3.28%
5,900 Balchem Corp * $ 48,675
35 Millenium Chemicals (Great Britain)* 706
--------
49,381
--------
COMPUTER SERVICES & SOFTWARE 7.71%
500 3Com* 33,813
1,000 Bay Networks Inc.* 20,250
600 Cabletron Systems, Inc.* 37,425
400 Cisco Systems, Inc.* 24,750
--------
116,238
--------
COMPUTERS & PERIPHERALS 5.94%
800 Dell Computer* 65,100
400 Sun Microsystems* 24,400
--------
89,500
--------
DRUG 1.53%
600 Forest Laboratories Inc.* 23,100
--------
ELECTRICAL EQUIPMENT 0.81%
1,250 York Research Corp. * 12,188
--------
The accompanying notes are an integral part of these financial statements.
<PAGE>
MAXIM CONTRARIAN FUND
SCHEDULE OF INVESTMENTS
October 31, 1996
Shares Value
- ------ -----
ELECTRONICS 3.87%
1,500 Helix Technology $ 39,938
1,400 Kulicke & Soffa Industries Inc.* 18,375
--------
58,313
--------
FINANCIAL SERVICES 3.13%
1,000 Cityscape Financial Corp.* 25,750
2,000 National Auto Credit Inc.* 21,500
--------
47,250
--------
PRECIOUS METALS MINING
--EXPLORATION 19.78%
7,000 Canarc Resources Corp. (Indonesia, Canada)* 9,395
17,000 Gran Columbia Resources (Colombia)* 25,350
20,000 Greater Lenora Resources Inc (Canada)* 12,079
28,400 Nevsun Resources (Ghana, Mali)* 215,985
9,600 Oliver Gold Corp. (Mali, Zimbabwe)* 35,431
--------
298,240
--------
HOTEL/GAMING 0.72%
5,000 International Thunderbird Gaming (Canada)* 10,811
--------
The accompanying notes are an integral part of these financial statements.
<PAGE>
MAXIM CONTRARIAN FUND
SCHEDULE OF INVESTMENTS
October 31, 1996
Shares Value
- ------ -----
INDUSTRIAL SERVICES 4.00%
500 Hanson Trust, ADR $ 3,188
1,400 Kaydon Corp 57,050
--------
60,238
--------
INSURANCE 3.75%
500 Exel Ltd. 19,000
1,000 Sun America Inc. 37,500
--------
56,500
--------
INVESTMENT COMPANY 1.11%
10,000 Salos Resources Corp. (Mexico)* 16,776
--------
MACHINERY 6.71%
1,200 Harnischfeger Industries, Inc. 48,000
2,800 JLG Industries 42,000
400 Lincoln Electric Company 11,100
--------
101,100
--------
MEDICAL SERVICES 2.98%
500 Dionex Corp.* 19,125
3,000 Medical Resources, Inc.* 25,875
--------
45,000
--------
The accompanying notes are an integral part of these financial statements.
<PAGE>
MAXIM CONTRARIAN FUND
SCHEDULE OF INVESTMENTS
October 31, 1996
Shares Value
- ------ -----
PRECIOUS METALS MINING
--PRODUCING 4.15%
6,000 Banro Resource Corp. (Zaire)* $ 26,282
6,000 Bema Gold Corp. (Chile)* 36,375
--------
62,657
--------
NON-PRECIOUS METALS
--EXPLORATION 3.55%
10,000 Adrian Resources Ltd. (Panama)* 33,125
10,000 Canadian States Resources (Canada)* 3,355
6,000 Cartaway Resources (Canada)* 2,908
9,700 Castle Rock Exploration Corp. (Canada)* 3,110
25,500 Consolidated Magna Ventures Ltd. (Canada)* 11,027
--------
53,525
--------
OFFICE EQUIPMENT/SUPPLIES 1.79%
2,000 OfficeMax, Inc.* . 27,000
--------
OIL & OILFIELD SERVICES 1.72%
5,000 Arakis Energy Corp. (Sudan)* 25,938
--------
RETAIL 2.58%
500 Dayton Hudson Corp.* 17,313
300 Fila Holdings, ADR 21,600
--------
38,913
--------
The accompanying notes are an integral part of these financial statements.
<PAGE>
MAXIM CONTRARIAN FUND
SCHEDULE OF INVESTMENTS
October 31, 1996
Shares Value
- ------ -----
RUBBER & PLASTICS 2.06%
2,000 Myers Industries, Inc.* $ 31,000
--------
SEMICONDUCTOR 1.85%
1,100 Atmel Corp.* 27,913
--------
TELECOMMUNIATIONS 3.39%
2,100 Worldcom Inc.* 51,188
--------
TOBACCO 2.01%
1,000 RJR Nabisco, Inc. 28,875
125 Imperial Tobacco Group, ADR (Great Britain) 1,445
--------
30,320
--------
NON-PRECIOUS METALS
--PRODUCING 2.15%
5,000 Manhattan Minerals Corp. (Mexico) 32,434
--------
The acompanying notes are an integral part of these financial statements.
<PAGE>
MAXIM CONTRARIAN FUND
SCHEDULE OF INVESTMENTS
October 31, 1996
Shares Value
- ------ -----
TOTAL COMMON STOCKS (cost $1,413,742)....... $ 1,365,523
-----------
SHORT OPTIONS -1.06%
5 3Com (January, 1997) 3,688
3 Cabletron Systems, Inc. (January, 1997) 225
4 Cisco Systems Inc. (January, 1997) 1,525
4 Dell Computer (May, 1997) 5,250
3 Fila Holdings (April, 1997) 844
15 Helix Technology Corp. (April, 1997) 3,844
4 Sun Microsystems ( January, 1997) 574
--------
15,950
--------
LONG OPTIONS 1.77%
20 Glamis Gold Ltd. (December, 1996) 1,000
20 Pepsico Inc. (January, 1997) 5,875
15 Travelers Group Inc. (January, 1997) 8,438
20 S & P Index 100 (November, 1997) 11,374
--------
26,687
--------
TOTAL OPTIONS (Cost $9,902)................... 10,737
--------
TOTAL INVESTMENTS
(Cost $1,423,644) 91.28% 1,376,260
Other Assets less liabilities 8.72% 131,442
----- --------
TOTAL NET ASSETS 100.00% $1,507,702
====== =========
<FN>
* Non-income producing securities.
</FN>
</TABLE>
The accompanying notes are an integral part of these financial statements.
<PAGE>
<TABLE>
<CAPTION>
MAXIM CONTRARIAN FUND
STATEMENT OF ASSETS AND LIABILITIES
October 31, 1996
<S> <C>
ASSETS:
Investment in common stock at market value
(identified cost--$1,423,644)(Note 1).................... $ 1,376,260
Cash....................................................... 132,736
Receivable for securities sold............................. 3,738
Dividends and interest receivable.......................... 525
-----------
TOTAL ASSETS............................ 1,513,259
-----------
LIABILITIES:
Payable for securities purchased........................... 1,324
Accrued advisory fee....................................... 2,946
Accrued trustees' fees..................................... 160
Accrued 12b-1 fees......................................... 1,127
-----------
TOTAL LIABILITIES....................... 5,557
-----------
NET ASSETS (equivalent to $9.21 per share based on
163,713 shares of common stock outstanding)--(Note 4).... $ 1,507,702
===========
NET ASSETS CONSIST OF:
Paid in capital (Note 4)................................. $ 1,578,360
Accumulated net realized gain/(loss) from
security transactions.................................. (23,274)
Net unrealized appreciation/depreciation on investments.. (47,384)
-----------
NET ASSETS OCTOBER 31, 1996 $ 1,507,702
===========
NET ASSET VALUE, REDEMPTION PRICE AND OFFERING
PRICE PER SHARE $ 9.21
===========
</TABLE>
The accompanying notes are an integral part of these financial statements.
<PAGE>
<TABLE>
<CAPTION>
MAXIM CONTRARIAN FUND
STATEMENT OF OPERATIONS
For the period from May 2, 1996
(Commencement of Operations) through October 31, 1996
<S> <C>
INVESTMENT INCOME:
Dividends............................................ $ 1,867
Interest............................................. 6,016
---------
TOTAL INVESTMENT INCOME........................... 7,883
---------
OPERATING EXPENSES:
Investment advisory fee (Note 3)..................... 11,261
Trustees' fees....................................... 740
12b-1 fee........................................... 1,127
---------
TOTAL OPERATING EXPENSES.......................... 13,128
---------
NET INVESTMENT INCOME/(LOSS)...................... (5,245)
---------
NET REALIZED AND UNREALIZED GAIN/(LOSS) ON INVESTMENTS:
Net realized gain/(loss) on security transactions...... (3,375)
Net realized gain/(loss) on option transactions........ (19,899)
Net change in unrealized appreciation/(depreciation)
on investments...................................... (47,384)
---------
NET GAIN/(LOSS) ON INVESTMENTS....................... (70,658)
---------
NET INCREASE/(DECREASE) IN NET ASSETS, RESULTING
FROM OPERATIONS.................................... $ (75,903)
=========
</TABLE>
The accompanying notes are an integral part of these financial statements.
<PAGE>
<TABLE>
<CAPTION>
MAXIM CONTRARIAN FUND
STATEMENT OF CHANGES IN NET ASSETS
For the period from May 2, 1996
(Commencement of Operations) through October 31, 1996
<S> <C>
INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS:
Net investment income/(loss)................................ $ (5,245)
Net realized gain/(loss) from securities transactions....... (3,375)
Net realized gain/(loss) from option transactions........... (19,899)
Net change in unrealized appreciation/(depreciation) of
investments during the period............................ (47,384)
-----------
NET INCREASE/(DECREASE) IN NET ASSETS FROM
OPERATIONS............................................... (75,903)
-----------
DISTRIBUTION TO SHAREHOLDERS:
Net investment income...................................... 0
Realized gain.............................................. 0
-----------
0
-----------
FUND SHARE TRANSACTIONS:
Shares sold................................................ 1,583,605
Shares issued in reinvestment of dividends................. 0
Shares redeemed............................................ 0
-----------
TOTAL CAPITAL STOCK 1,583,605
-----------
NET INCREASE/(DECREASE) IN NET ASSETS 1,507,702
-----------
NET ASSETS:
Beginning of period........................................ 0
-----------
End of period............................................... $ 1,507,702
===========
</TABLE>
The accompanying notes are an integral part of these financial statements.
<PAGE>
MAXIM CONTRARIAN FUND
NOTES TO FINANCIAL STATEMENTS
October 31, 1996
1. ORGANIZATION
The MAXIM Contrarian Fund. (the "Fund") was organized as a series of the
AmeriPrime Funds, an Ohio business trust (the "Trust"), on December 26, 1995 and
commenced operations on May 2, 1996. The Trust is registered under the
Investment Company Act of 1940, as amended, as a non-diversified, 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 Valuation- 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 values 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 instiutional-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 restriced 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>
MAXIM CONTRARIAN FUND
NOTES TO FINANCIAL STATEMENTS
October 31, 1996
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.However, for the taxable year ended October 31, 1996 the
Fund did not qualify to be taxed as a "regulated investment company" for federal
income tax purposes. The Fund intends to qualify as a "regulated investment
company" in subsequent years.This non-qualification had no effect on net asset
value or tax owed by the Fund.
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. Discounts and premiums on securities purchased are amortized over the
life of the respective securities.
NOTE 3. FEES AND OTHER TRANSACTIONS WITH AFFILIATES
The Fund retains Newport Investment Advisors, Inc. (the "Adviser") to
manage the Fund's investments. Kenneth M. Holeski, president and controlling
shareholder of the Adviser, is primarily responsible for the day to day
management 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 12b-1 fees, 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 2.50% of the average daily
net assets of the Fund. It should be noted that most investment companies pay
their own operating expenses directly, while the Fund's expenses, except those
specified above, are paid by the Adviser. For the period from May 2, 1996
through October 31, 1996, the Adviser has received a fee of $11,261 from the
Fund.
<PAGE>
MAXIM CONTRARIAN FUND
NOTES TO FINANCIAL STATEMENTS
October 31, 1996
NOTE 4. CAPITAL SHARE TRANSACTIONS
As of October 31, 1996 there was an unlimited number of no par value shares
of capital stock authorized for the Fund. Paid in capital at October 31, 1996
was $1,578,360.
Transactions in capital stock were as follows:
<TABLE>
<S> <C> <C>
For the period from May 2, 1996
(Commencement of Operations) through
October 31, 1996
Shares Amount
------ ------
Shares sold 163,713 $1,583,605
Shares issued in reinvestment
of dividends 0 0
Shares redeemed 0 0
------- -----------
Net Increase 163,713 $1,583,605
======= =========
</TABLE>
NOTE 5. INVESTMENTS
For the period from May 2, 1996 (commencement of operations) through October 31,
1996, purchases and sales of investment securities, other than short-term
investments, aggregated $1,420,727 and $6,985, respectively. The gross
unrealized appreciation for all securities totaled $93,750 and the gross
unrealized depreciation for all securities totaled $141,134 for a net unrealized
depreciation of $47,384. The aggregate cost of securities for federal income tax
purposes at October 31, 1996 was $1,423,644. As of October 31, 1996 the Fund has
invested 33.33% of its net assets in foreign securities and American Depository
Receipts (ADR).
<PAGE>
.
MAXIM CONTRARIAN FUND
NOTES TO FINANCIAL STATEMENTS
October 31, 1996
NOTE 6. ESTIMATES
Preparation of financial statements in accordance with generally accepted
accounting principles requires management to make estimates and assumptions that
affect the reported amounts of assets and liabilities and the reported amounts
of revenues and expenses during the reporting period. Actual results could
differ from those estimates.
NOTE 7. RECLASSIFICATIONS
In accordance with SOP 93-2, The Fund has recorded a reclassification in the
capital accounts. As of October 31, 1996, The Fund recorded permanent book/tax
differences of $(5,245) from undistributed net investment income to paid in
capital. This reclassification has no impact on the net asset value of The Fund
and is designed generally to present undistributed income and realized gains on
a tax basis which is considered to be more informative to the shareholder.
NOTE 8. RELATED PARTY TRANSACTIONS
The Adviser is not a registered broker-dealer of securities and thus does not
receive commissions on trades made on behalf of the Funds. 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 October 31, 1996, Cheryl
Holeski (wife of the President and controlling shareholder of Newport Investment
Advisor) owns more than 25% of the fund.
<PAGE>
<TABLE>
<CAPTION>
MAXIM CONTRARIAN FUND
FINANCIAL HIGHLIGHTS
For a share outstanding throughout the period
from May 2, 1996 (Commencement of Operations)
through October 31, 1996
<S> <C>
Net asset value- beginning of period....................... $10.00
--------
Income from investment operations:
Net investment income/(loss)............................... (.05)
Net gain/(loss) on investments both realized and
unrealized................................................ (.74)
-------
Total from investment operations........................... (.79)
-------
Less distributions:
Dividends from net investment income....................... 0
Dividends from capital gains............................... 0
-------
Net asset value- end of period............................. $ 9.21
=======
Total Return**............................................. (15.80)%
Ratios/Supplemental data:
Net assets, end of period (in 000's)....................... 1,508
Ratio of expenses to average net assets**.................. 2.89%
Ratio of net investment income to average net assets**..... (1.16)%
Portfolio turnover rate.................................... .92%
Average Commission rate paid............................... .0497
<FN>
** Annualized
</FN>
</TABLE>
The accompanying notes are an integral part of these financial statements.
<PAGE>
Dear Fellow Shareholders:
Building wealth wisely. Three words that perfectly describe our focus. As
fellow shareholders of the IMS Capital Value Fund, we clearly have the same
priorities that you do; taking as little risk as possible and making as much
money as possible. That's what building wealth wisely is all about. Of course
there are many ways to build wealth, but to do it wisely one must learn to
minimize the risk while maximizing the return. How do we tackle this
monumental task? Shareholders will find the answer to that question reiterated
in one form or another, in each shareholder letter that we write. We believe
that an educated shareholder is a better investor. Our hope is that we will be
able to educate and inform you about various investing topics over the years in
an interesting and thought-provoking manner. We'll take time to let you know
what factors affected the fund's performance and to make sure you know something
about each company in which were invested. What we won't do is bore you with
dissertations on the economy, interest rates and unemployment data. Although we
pay close attention to such matters, the time and energy we save by not
attempting to time the market or predict the economy is much better spent
researching new investment ideas.
Back to the $64,000 question: How do we go about minimizing the fund's risk
while maximizing return? We start by minimizing the risk. One of the most
important elements is diversification. We diversify across a broad range of
industries and companies. The fund typically has representation from at least
15 to 20 different industries, however, we are careful not to dilute our best
ideas by owning an excessive number of companies. We look for global
diversification within companies, in other words, companies that do a lot of
business overseas. We prefer dividend-paying companies for stability and
companies that trade on the New York Stock Exchange. Our focus is on highly-
visible, Fortune 500, U.S. companies. Reliable information is plentiful on these
types of companies and they tend to have the resources to bounce back after
encountering negative business conditions. We do not know of a category of
stocks possessing less risk than this universe of companies. But to take it a
step further, we buy these companies when they are cheap -- trading at
historically low levels in terms of their fundamental valuation measures. We
believe, and history has shown, that investors tend to overreact to short-term
negative events, creating undervalued security prices. The herd seldom
distinguishes between serious fundamental setbacks and temporary solvable
events. In short, we end up buying quality companies that are temporarily out
of favor and historically undervalued. In the past, many of these fallen
angels, such as Nike, Johnson & Johnson and Boeing, have quickly lost 40% to
50% of their value over temporary set backs.
All of the above companies went on to at least triple in value after their
precipitous drops. Waiting for companies to regain their past glory often takes
patience, typically three to five years on average, which means our fund also
has very low turnover. This keeps trading costs to a minimum and maximizes our
shareholders after-tax returns. Finally, our style tends to be fairly defensive
by nature and tends to hold its ground much better in down markets than other
more aggressive styles. A wise man once said, "It's hard to fall very far from a
first story window."
Lets look at a real-world example. One of the largest positions in the IMS
Capital Value Fund is a company called Fruit of the Loom, a leading producer of
cotton T-shirts and underwear. In mid-August it was trading at $27 a share. By
the end of the quarter on October 31, 1996, it had jumped to $37, nearly a 40%
gain in just three months.Keep in mind that this
<PAGE>
stock traded at almost $50 in 1993. Beginning in 1993, the companys earnings
came under significant pressure, primarily due to the high cost of labor in
this country. To combat this problem, Fruit of the Loom shifted over half of
its production capabilities offshore and cut personnel. These moves are
beginning to bear fruit (excuse the pun) as the companys lower manufacturing
costs are now having a positive impact on the bottom line. Furthermore, with
most of the restructuring and capital expenditures complete, the company is
able to spend its cashflow to reduce debt and repurchase stock, both of which
add shareholder value. It looks like investors overreacted just a tad when they
took the stock all the way down to $18 less than a year ago. Oddly enough, it
turns out people still need T-shirts and underwear.
Another example of how we seek to build wealth wisely for our shareholders lies
in a company that has yet to blossom. Rubbermaid is one of the funds largest
positions and is currently trading slightly below the price at which we bought
in. This classic contrarian value play is the world's leading manufacturer of
plastic products for the home, juvenile, commercial, seasonal, office, and
health care markets and possesses one of the most recognizable and valued
brand names in the country. A sharp increase in resin costs, the primary raw
material in most of Rubbermaid's products, has been a big factor in bringing
this blue-chip stock down nearly 40% from its 1991 all-time high of $38 to the
current low 20s. Wall Street has given up hope. Only 4 of the 20 Wall Street
analysts following the company give it a favorable rating. But like a rubber
band, this company should snap back. Resin prices are not unlike the prices of
any other commodity. They will eventually come back down to reasonable levels
as suppliers add capacity. In addition, Rubbermaid is half way through an
aggressive two-year restructuring program that is significantly reducing costs
as well as streamlining operations and product lines. The firm recently spent
a decade as one of Fortune's Ten Most Admired companies and has increased sales
and dividends every year since before Kennedy took office. By any valuation
measure, price-to-earnings, price-to-book, price-to-sales, or price-to-cash
flow, Rubbermaid is cheaper at these levels than at anytime in the last 10
years. We view this as a tremendous buying opportunity. In time, we believe
Rubbermaids shares will become fairly valued and trade at roughly twice their
current level. In the meantime, the shares yield a very respectable 2.3%
annual dividend.
We are well aware that today's investors have thousands of funds from which to
choose. In order to stand out, we must go above and beyond in terms of adding
value to our shareholders in the form of education, prudent risk management and
solid performance results. We have a goal to earn our fund a place among the
most respected funds in the country. Our performance will ultimately be
determined by how skillfully we execute what we feel is a proven and superior
investment strategy. The only guarantee we can make, however, is that we will
not waiver from our investment discipline. Each one of us at IMS has made a
significant personal monetary investment in the fund. In this way our personal
and professional success is directly tied to the funds success. Be assured that
we will not lose sight of what matters to our fellow shareholders. We view each
investment of your hard-earned dollars as a show of trust in our ability.
P.S. The fund gained 7.6% in the three-month period from August 1, 1996 to
October 31, 1996. Please mark your calendars for our first Annual
Information Meeting for Shareholders - February 12, 1996.
/s/ Carl W. Marker /s/ Douglas E. Johanson, CFA
Carl W. Marker Douglas E. Johanson, CFA
Portfolio Manager Research Analyst
<PAGE>
INDEPENDENT AUDITOR'S REPORT
To The Shareholders and Board of Trustees
The IMS Capital Value Fund
We have audited the statement of assets and liabilities including the portfolio
of investments, of The IMS Capital Value Fund (a member of the Ameriprime
Fund Series) as of October 31, 1996, and the related statement of operations,
the statement of changes in net assets, and the financial highlights for the
period from August 1, 1996 (commencement of operations) to October 31, 1996.
These financial statements and financial highlights are the responsibility of
the Fund's management. Our responsibility is to express an opinion on these
financial statements and financial highlights 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 financial statements and financial
highlights are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements. Our procedures included confirmation of securities owned as of
October 31, 1996, by correspondence with the custodian and brokers. An audit
also includes assessing the accounting prin ciples used and significant
estimates made by management, as well as evaluating the overall financial
statement presentation. We believe that our audit provides a reasonable basis
for our opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of The
IMS Capital Value Fund as of October 31, 1996, the results of it's
operations, the changes in it's net assets, and the financial highlights for the
period from August 1, 1996 (commencement of operations) to October 31, 1996 in
conformity with generally accepted accounting principles.
McCurdy & Associates CPA's, Inc.
Westlake, Ohio 44145
November 20, 1996
<PAGE>
<TABLE>
<CAPTION>
IMS CAPITAL VALUE FUND
SCHEDULE OF INVESTMENTS
October 31, 1996
<C> <S> <C>
Shares Value
- ------ -----
COMMON STOCKS 94.87%
APPAREL 16.69%
20,815 Fruit of the Loom* $ 757,146
950 Reebok International 33,963
------
791,109
-------
AUTO 3.87%
3,405 General Motors Corp. 183,444
-------
COMPUTER & PERIPHERALS 9.48%
11,900 American Power Conversion* 254,362
4,425 Hewlett Packard Co. 195,253
-------
449,615
-------
CONGLOMERATE 2.43%
2,400 Corning Inc. 93,000
600 Hillenbrand Industries 22,200
-------
115,200
-------
ELECTRONICS 5.15%
3,670 Motorola 168,820
4,600 Sensormatic Electronics 75,325
-------
244,145
-------
The accompanying notes are an integral part of these financial statements.
<PAGE>
IMS CAPITAL VALUE FUND
SCHEDULE OF INVESTMENTS
October 31, 1996
Shares Value
- ------ -----
ENTERTAINMENT 2.06%
20,000 Marvel Entertainment* $ 97,500
-------
FINANCIAL SERVICES 4.47%
6,100 H & R Block 150,975
1,350 Salomon 60,919
-------
211,894
-------
FOOD 6.10%
16,655 Fleming Companies 289,381
-------
FOREST PRODUCTS 3.48%
7,900 Louisiana-Pacific 164,913
-------
HEALTHCARE 8.78%
5,050 Bausch & Lomb Inc. 170,437
8,000 Ivax Corp. 132,000
3,000 United Healthcare 113,625
-------
416,062
-------
HOME FURNISHINGS 3.02%
12,200 Shaw Industries 143,350
-------
The acccompanying notes are an integral part of these financial statements.
<PAGE>
IMS CAPITAL VALUE FUND
SCHEDULE OF INVESTMENTS
October 31, 1996
Shares Value
- ------ -----
HOUSEHOLD PRODUCTS 6.11%
8,900 Rubbermaid $ 206,925
3,350 Sunbeam Corp. 82,494
--------
289,419
--------
RETAIL 11.61%
28,950 Kmart Corp. 282,263
6,090 Price/Costco* 121,039
2,750 Toys "R" Us* 93,156
2,020 Wal-Mart Stores 53,782
-------
550,240
-------
TELECOMMUNICATIONS EQUIPMENT 2.12%
5,000 General Instrument* 100,625
-------
TIRE & RUBBER 2.33%
5,650 Cooper Tire & Rubber Corp. 110,881
-------
TOBACCO 4.69%
7,700 RJR Nabisco Holdings 222,337
-------
UTILITIES 2.48%
5,000 Pacific Gas & Electric 117,500
-------
The accompanying notes are an integral part of these financial statements.
<PAGE>
IMS CAPITAL VALUE FUND
SCHEDULE OF INVESTMENTS
October 31, 1996
Shares Value
- ------ -----
TOTAL COMMON STOCKS (cost $4,253,209)............. $4,497,615
TOTAL INVESTMENTS 94.87% 4,497,615
(Cost $4,253,209)
Other Assets less liabilities 5.13% 243,051
------ ----------
TOTAL NET ASSETS 100.00% $4,740,666
======= ==========
<FN>
*Non-income producing security.
</FN>
</TABLE>
The accompanying notes are an integral part of these financial statements.
<PAGE>
<TABLE>
<CAPTION>
IMS CAPITAL VALUE FUND
STATEMENT OF ASSETS AND LIABILITIES
October 31, 1996
<S> <C>
ASSETS:
Investment in common stock at market value
(identified cost--$4,253,209)(Note 1).................. $ 4,497,615
Short-term investments................................... 555,997
Receivable for securities sold.......................... 9,693
Receivable for fund shares sold.......................... 14,415
Dividends and interest receivable........................ 2,127
-----------
TOTAL ASSETS.......................... 5,079,847
-----------
LIABILITIES:
Payable for securities purchased......................... 333,182
Accrued advisory fee..................................... 619
Accrued operating expenses............................... 5,380
-----------
TOTAL LIABILITIES..................... 339,181
-----------
NET ASSETS (equivalent to $10.76 per share based on
440,657 shares of common stock outstanding)--(Note 4).. $ 4,740,666
===========
NET ASSETS CONSIST OF:
Paid in capital (Note 4 and 7)......................... $ 4,509,667
Accumulated undistributed net realized gain/(loss) from
security transactions................................ (13,407)
Net unrealized appreciation/depreciation on investments.. 244,406
-----------
NET ASSETS OCTOBER 31, 1996.............................. $ 4,740,666
===========
NET ASSET VALUE, REDEMPTION AND OFFERING
PRICE PER SHARE................................. $ 10.76
===========
</TABLE>
The accompanying notes are an integral part of these financial statements.
<PAGE>
<TABLE>
<CAPTION>
IMS CAPITAL VALUE FUND
STATEMENT OF OPERATIONS
For the period from August 1, 1996
(Commencement of Operations) through October 31, 1996
<S> <C>
INVESTMENT INCOME:
Dividends................................................ $ 7,210
Interest................................................. 3,365
---------
TOTAL INVESTMENT INCOME............................... 10,575
---------
OPERATING EXPENSES:
Investment advisory fee (Note 3)......................... 9,952
Administration fee....................................... 7,541
Transfer agent fee....................................... 2,313
Fund accounting fee...................................... 2,313
Custodian fee............................................ 1,207
Legal fee................................................ 1,257
Trustees' fees........................................... 421
Miscellaneous operating expenses......................... 1,074
---------
TOTAL OPERATING EXPENSES BEFORE REIMBURSEMENT 26,078
---------
REIMBURSED EXPENSES................................... 13,812
---------
TOTAL OPERATING EXPENSES.......................... 12,266
---------
NET INVESTMENT INCOME/(LOSS).... (1,691)
---------
NET REALIZED AND UNREALIZED GAIN/(LOSS) ON INVESTMENTS:
Net realized gain/(loss) on security transactions......... (13,407)
Net change in unrealized appreciation/(depreciation) on
investments............................................. 244,406
----------
NET GAIN/(LOSS) ON INVESTMENTS.......................... 230,999
----------
NET INCREASE/(DECREASE) IN NET ASSETS, RESULTING
FROM OPERATIONS....................................... $ 229,308
==========
</TABLE>
The accompanying notes are an integral part of these financial statements.
<PAGE>
<TABLE>
<CAPTION>
IMS CAPITAL VALUE FUND
STATEMENT OF CHANGES IN NET ASSETS
For the period from August 1, 1996
(Commencement of Operations) through October 31, 1996
<S> <C>
INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS:
Net investment income/(loss)........................... $ ( 1,691)
Net realized gain/(loss) from securities transactions.. (13,407)
Net change in unrealized appreciation/(depreciation) of
investments during the period....................... 244,406
-----------
NET INCREASE/(DECREASE) IN NET ASSETS FROM
OPERATIONS.......................................... 229,308
-----------
DISTRIBUTION TO SHAREHOLDERS:
Net investment income................................. 0
Realized gain......................................... 0
-----------
0
-----------
FUND SHARE TRANSACTIONS:
Shares sold........................................... 4,524,858
Shares issued in reinvestment of dividends............ 0
Shares redeemed....................................... (13,500)
-----------
TOTAL CAPITAL STOCK 4,511,358
-----------
NET INCREASE/(DECREASE) IN NET ASSETS 4,740,666
-----------
NET ASSETS:
Beginning of period................................... 0
-----------
End of period.......................................... $ 4,740,666
===========
</TABLE>
The accompanying notes are an integral part of these financial statements.
<PAGE>
IMS CAPITAL VALUE FUND
NOTES TO FINANCIAL STATEMENTS
October 31, 1996
1. ORGANIZATION
The IMS Capital Value Fund. (the "Fund") was organized as a series of the
AmeriPrime Funds, an Ohio business trust (the "Trust"), on July 30, 1996 and
commenced operations on August 1, 1996. The Trust is registered under the
Investment Company Act of 1940, as amended, as a diversified, 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 Valuation- 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 values 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 instiutional-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 restriced 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>
IMS CAPITAL VALUE FUND
NOTES TO FINANCIAL STATEMENTS
October 31, 1996
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.Discounts and premiums on securities purchased are amortized over the life
of the respective securities.
NOTE 3. FEES AND OTHER TRANSACTIONS WITH AFFILIATES
The Fund retains IMS Capital Management, Inc. (the "Adviser") to manage
the Fund's investments. Carl W. Marker, Chairman and President of the Adviser,
is primarily responsible for the day to day management 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. 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
1.59% of the average daily net assets of the Fund. For the period from August 1,
1996 through October 31, 1996, the Adviser has received a fee of $9,952 from the
Fund. The Adviser is voluntarily reimbursing certain Fund expenses. There is no
assurance that such reimbursement will continue in the future.
<PAGE>
IMS CAPITAL VALUE FUND
NOTES TO FINANCIAL STATEMENTS
October 31, 1996
NOTE 4. CAPITAL SHARE TRANSACTIONS
As of October 31, 1996 there was an unlimited number of no par value shares
of capital stock authorized for the Fund. Paid in capital at October 31, 1996
was $4,509,667.
Transactions in capital stock were as follows:
For the period from August 1, 1996
(Commencement of Operations) through
October 31, 1996
<TABLE>
<S> <C> <C>
Shares Amount
------ ------
Shares sold 441,933 $4,524,858
Shares issued in reinvestment
of dividends 0 0
Shares redeemed (1,276) (13,500)
-------- ----------
Net Increase 440,657 $4,511,358
======= =========
</TABLE>
NOTE 5. INVESTMENTS
For the period from August 1, 1996 (commencement of operations) through October
31, 1996, purchases and sales of investment securities, other than short-term
investments, aggregated $4,366,153 and $112,944, respectively. The gross
unrealized appreciation for all securities totaled $359,668 and the gross
unrealized depreciation for all securities totaled $115,262 for a net unrealized
appreciation of $244,406. The aggregate cost of securities for federal income
tax purposes at October 31, 1996 was $4,253,209.
<PAGE>
IMS CAPITAL VALUE FUND
NOTES TO FINANCIAL STATEMENTS
October 31, 1996
NOTE 6. ESTIMATES
Preparation of financial statements in accordance with generally accepted
accounting principles requires management to make estimates and assumptions that
affect the reported amounts of assets and liabilities and the reported amounts
of revenues and expenses during the reporting period. Actual results could
differ from those estimates.
NOTE 7. RECLASSIFICATIONS
In accordance with SOP 93-2, The Fund has recorded a reclassification in the
capital accounts. As of October 31, 1996, The Fund recorded permanent book/tax
differences of $(1,691) from undistributed net investment income to paid in
capital. This reclassification has no impact on the net asset value of The Fund
and is designed generally to present undistributed income and realized gains on
a tax basis which is considered to be more informative to the shareholder.
<PAGE>
<TABLE>
<CAPTION>
IMS CAPITAL VALUE FUND
FINANCIAL HIGHLIGHTS
For a share outstanding throughout the period
from August 1, 1996 (Commencement of Operations)
through October 31, 1996
<S> <C>
Net asset value- beginning of period.......................... $ 10.00
-------
Income from investment operations:
Net investment income/(loss).................................. (.01)
Net gain/(loss) on investments both realized and unrealized... .77
-------
Total from investment operations.............................. .76
-------
Less distributions:
Dividends from net investment income.......................... 0
Dividends from capital gains.................................. 0
-------
Net asset value- end of period................................ $ 10.76
=======
Total Return**................................................ 30.23%
Ratios/Supplemental data:
Net assets, end of period (in 000's).......................... 4,741
Ratio of expenses to average net assets** ++................. 1.84%
Ratio of net investment income to average net assets** ++.... (.25)%
Portfolio turnover rate....................................... 3.56%
Average Commission rate paid.................................. .0416
<FN>
** Annualized
++ Expense ratio is net of reimbursements. Had such reimbursements not been
made, the expense ratio and the net investment income ratio would have been
3.92% and(2.32)%, respectively.
</FN>
</TABLE>
The accompanying notes are an integral part of these financial statements.
WARNING: THE EDGAR SYSTEM ENCOUNTERED ERROR(S) WHILE PROCESSING THIS SCHEDULE.
<TABLE> <S> <C>
<ARTICLE> 6
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> OCT-31-1996
<PERIOD-END> OCT-31-1996
<INVESTMENTS-AT-COST> 977,124
<INVESTMENTS-AT-VALUE> 1,103,865
<RECEIVABLES> 18,492
<ASSETS-OTHER> 2,025
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 1,124,382
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 1,736
<TOTAL-LIABILITIES> 1,736
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 975,454
<SHARES-COMMON-STOCK> 93,296
<SHARES-COMMON-PRIOR> 0
<ACCUMULATED-NII-CURRENT> 11,996
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 8,455
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 126,741
<NET-ASSETS> 1,122,646
<DIVIDEND-INCOME> 23,302
<INTEREST-INCOME> 242
<OTHER-INCOME> 0
<EXPENSES-NET> 11,548
<NET-INVESTMENT-INCOME> 11,996
<REALIZED-GAINS-CURRENT> 8,455
<APPREC-INCREASE-CURRENT> 126,741
<NET-CHANGE-FROM-OPS> 147,192
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 0
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 971,640
<NUMBER-OF-SHARES-REDEEMED> 21,186
<SHARES-REINVESTED> 0
<NET-CHANGE-IN-ASSETS> 1,097,646
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 0
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 11,548
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 13,233
<AVERAGE-NET-ASSETS> 841,876
<PER-SHARE-NAV-BEGIN> 10.00
<PER-SHARE-NII> .16
<PER-SHARE-GAIN-APPREC> 1.87
<PER-SHARE-DIVIDEND> 0
<PER-SHARE-DISTRIBUTIONS> 0
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 12.03
<EXPENSE-RATIO> 1.51
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
WARNING: THE EDGAR SYSTEM ENCOUNTERED ERROR(S) WHILE PROCESSING THIS SCHEDULE.
<TABLE> <S> <C>
<ARTICLE> 6
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> OCT-31-1996
<PERIOD-END> OCT-31-1996
<INVESTMENTS-AT-COST> 573,984
<INVESTMENTS-AT-VALUE> 608,119
<RECEIVABLES> 39,579
<ASSETS-OTHER> 14,722
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 662,420
<PAYABLE-FOR-SECURITIES> 34,150
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 1,111
<TOTAL-LIABILITIES> 35,261
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 510,186
<SHARES-COMMON-STOCK> 49,693
<SHARES-COMMON-PRIOR> 0
<ACCUMULATED-NII-CURRENT> (2,866)
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 82,838
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 34,135
<NET-ASSETS> 627,159
<DIVIDEND-INCOME> 4,763
<INTEREST-INCOME> 0
<OTHER-INCOME> 0
<EXPENSES-NET> 7,629
<NET-INVESTMENT-INCOME> (2,866)
<REALIZED-GAINS-CURRENT> 82,838
<APPREC-INCREASE-CURRENT> 34,135
<NET-CHANGE-FROM-OPS> 114,107
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 0
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 536,013
<NUMBER-OF-SHARES-REDEEMED> (47,961)
<SHARES-REINVESTED> 0
<NET-CHANGE-IN-ASSETS> 602,159
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 0
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 5,944
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 7,629
<AVERAGE-NET-ASSETS> 482,591
<PER-SHARE-NAV-BEGIN> 10.00
<PER-SHARE-NII> (.07)
<PER-SHARE-GAIN-APPREC> 2.69
<PER-SHARE-DIVIDEND> 0
<PER-SHARE-DISTRIBUTIONS> 0
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 12.62
<EXPENSE-RATIO> 1.87
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
WARNING: THE EDGAR SYSTEM ENCOUNTERED ERROR(S) WHILE PROCESSING THIS SCHEDULE.
<TABLE> <S> <C>
<ARTICLE> 6
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> OCT-31-1996
<PERIOD-END> OCT-31-1996
<INVESTMENTS-AT-COST> 2,967,081
<INVESTMENTS-AT-VALUE> 3,275,262
<RECEIVABLES> 66,487
<ASSETS-OTHER> 104,982
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 3,446,731
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 3,655
<TOTAL-LIABILITIES> 3,655
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 3,081,294
<SHARES-COMMON-STOCK> 275,916
<SHARES-COMMON-PRIOR> 0
<ACCUMULATED-NII-CURRENT> 2,033
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 51,568
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 308,181
<NET-ASSETS> 3,443,076
<DIVIDEND-INCOME> 23,719
<INTEREST-INCOME> 0
<OTHER-INCOME> 0
<EXPENSES-NET> 21,686
<NET-INVESTMENT-INCOME> 2,033
<REALIZED-GAINS-CURRENT> 51,568
<APPREC-INCREASE-CURRENT> 308,181
<NET-CHANGE-FROM-OPS> 361,782
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 0
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 3,056,294
<NUMBER-OF-SHARES-REDEEMED> 60
<SHARES-REINVESTED> 0
<NET-CHANGE-IN-ASSETS> 3,418,076
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 0
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 21,686
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 23,371
<AVERAGE-NET-ASSETS> 2,031,549
<PER-SHARE-NAV-BEGIN> 10.00
<PER-SHARE-NII> 0.01
<PER-SHARE-GAIN-APPREC> 2.47
<PER-SHARE-DIVIDEND> 0
<PER-SHARE-DISTRIBUTIONS> 0
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 12.48
<EXPENSE-RATIO> 1.16
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
WARNING: THE EDGAR SYSTEM ENCOUNTERED ERROR(S) WHILE PROCESSING THIS SCHEDULE.
<TABLE> <S> <C>
<ARTICLE> 6
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> OCT-31-1996
<PERIOD-END> OCT-31-1996
<INVESTMENTS-AT-COST> 1,423,644
<INVESTMENTS-AT-VALUE> 1,376,260
<RECEIVABLES> 4,263
<ASSETS-OTHER> 132,736
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 1,513,259
<PAYABLE-FOR-SECURITIES> 1,324
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 4,233
<TOTAL-LIABILITIES> 5,557
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 1,578,360
<SHARES-COMMON-STOCK> 163,713
<SHARES-COMMON-PRIOR> 0
<ACCUMULATED-NII-CURRENT> (5,245)
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> (23,274)
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> (47,384)
<NET-ASSETS> 1,507,702
<DIVIDEND-INCOME> 1,867
<INTEREST-INCOME> 6,016
<OTHER-INCOME> 0
<EXPENSES-NET> 13,128
<NET-INVESTMENT-INCOME> (5,245)
<REALIZED-GAINS-CURRENT> (23,274)
<APPREC-INCREASE-CURRENT> (47,384)
<NET-CHANGE-FROM-OPS> (75,903)
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 0
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 1,583,605
<NUMBER-OF-SHARES-REDEEMED> 0
<SHARES-REINVESTED> 0
<NET-CHANGE-IN-ASSETS> 1,507,702
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 0
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 11,261
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 13,128
<AVERAGE-NET-ASSETS> 907,787
<PER-SHARE-NAV-BEGIN> 10.00
<PER-SHARE-NII> (.05)
<PER-SHARE-GAIN-APPREC> (.74)
<PER-SHARE-DIVIDEND> 0
<PER-SHARE-DISTRIBUTIONS> 0
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 10.00
<EXPENSE-RATIO> 2.89
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> OCT-31-1996
<PERIOD-END> OCT-31-1996
<INVESTMENTS-AT-COST> 4,253,209
<INVESTMENTS-AT-VALUE> 4,497,615
<RECEIVABLES> 26,235
<ASSETS-OTHER> 555,997
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 5,079,847
<PAYABLE-FOR-SECURITIES> 333,182
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 5,999
<TOTAL-LIABILITIES> 339,181
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 4,509,667
<SHARES-COMMON-STOCK> 440,657
<SHARES-COMMON-PRIOR> 0
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> (13,407)
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 244,406
<NET-ASSETS> 4,740,666
<DIVIDEND-INCOME> 7,210
<INTEREST-INCOME> 3,365
<OTHER-INCOME> 0
<EXPENSES-NET> 12,266
<NET-INVESTMENT-INCOME> (1,691)
<REALIZED-GAINS-CURRENT> (13,407)
<APPREC-INCREASE-CURRENT> 244,406
<NET-CHANGE-FROM-OPS> 229,308
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 0
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 4,524,858
<NUMBER-OF-SHARES-REDEEMED> 13,500
<SHARES-REINVESTED> 0
<NET-CHANGE-IN-ASSETS> 4,740,666
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 0
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 9,952
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 26,078
<AVERAGE-NET-ASSETS> 2,649,898
<PER-SHARE-NAV-BEGIN> 10.00
<PER-SHARE-NII> (.01)
<PER-SHARE-GAIN-APPREC> .77
<PER-SHARE-DIVIDEND> 0
<PER-SHARE-DISTRIBUTIONS> 0
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 10.76
<EXPENSE-RATIO> 1.84
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>