Carl Domino Associates, LP
580 Village Boulevard, Suite 225
West Palm Beach, FL 33409
Fax: 407-697-0070
Research Library Fax: 407-686-8074
April 30, 1996
Dear Shareholders:
We are proud to present the investment results for the Carl Domino Equity Income
Fund. Since inception in December 1995, the Fund has returned 10.9%,
significantly out pacing the return of the S&P 500 at 8.8%.
In the coming months, the market will be influenced by the upcoming presidential
election. The markets have generally responded favorably in election years as
investors tend to gain enthusiasm once it has become clear whose policies will
be selected in November. Despite the fact that the market is at an all time
high, we still find many secuerities that offer good value. American companies
continue to be dynamic and are quick both to close losing operations and deploy
excess cash flows in low rish/high return fashion. Accordingly, we continue to
emphasize the shares of companies with strong balance sheets and improving
prospects that might be subject to corporate rationalization. We believe an
accelerated pace of dividend increases and continued share repurchases are
likely since companies are enjoying strong cash flows and payout ratios are
relatively low. Both should further bolster share prices.
While there will undoubtadly be corrections in the market, in our view, only a
material rise in interest rates could cause serious downside pressure. Our
fundamental strategy of buying stocks with higher than market yields which
should provide significant downside cushion should the market or individual
companies prove to be disappointing. Emphasis will continue to be placed on
companies with strong balance sheets and financial strategies that incorporate
dividend increases and share repurchases.
Be assured that although we cannot guarantee future results, the investment
professionals at Carl Domino Associates will work hard to avoid disappointments
and take advantage of opportunities as they arise.
Best regards,
/s/ Carl J. Domino
Carl J. Domino
Managing Partner
<PAGE>
<TABLE>
<CAPTION>
CARL DOMINO EQUITY INCOME FUND
SCHEDULE OF INVESTMENTS
April 30, 1996
(Unaudited)
<C> <S> <C>
Shares Value
- -------- ---------
COMMON STOCKS 93.03%
ELECTRONIC EQUIPMENT 1.30%
300 Thomas & Betts Corp. $ 11,813
-----------
PUBLISHING 1.81%
400 Reader's Digest Assn. Inc. 16,400
-----------
PUBLISHING & ENTERTAINMENT 1.57%
400 Cedar Fair LP 14,300
-----------
RETAIL 2.56%
1,100 Intimate Brands Inc. 23,237
-----------
EQUIPMENT/SERVICE/DRILLING 1.39%
600 McDermott International Inc. 12,600
-----------
OIL & GAS DOMESTIC 8.00%
500 Questar Corp. 17,500
400 Sonat Inc. 17,450
650 Sun Inc. 20,150
800 USX-Marathon Group 17,600
-----------
72,700
-----------
The accompanying notes are an integral part of these financial statements.
<PAGE>
CARL DOMINO EQUITY INCOME FUND
SCHEDULE OF INVESTMENTS
April 30, 1996
(Unaudited)
Shares Value
- -------- -------
OIL & GAS INTERNATIONAL 4.85%
250 Mobil Corp. $ 28,750
700 YPF Sociedad Anonima ADR 15,313
-----------
44,063
-----------
FINANCE-MISCELLANEOUS 4.23%
4,000 Hoeing Group Inc. 15,000
825 MBNA Corp. 23,409
-----------
38,409
-----------
INSURANCE-MULTI/P & C/LIFE 8.41%
400 GCR Holdings Ltd* 10,200
400 ITT Hartford Group Inc. 19,550
500 Lincoln National Corp. 24,125
800 USLife Corp. 22,500
-----------
76,375
-----------
MAJOR REGULAR BANKS/OTHER BANKS 6.49%
200 BankAmerica Corp. 15,150
200 Barnett Banks Inc 12,675
400 Boatmens Bancshares Inc. 15,500
400 CoreStates Financial Corp. 15,600
-----------
58,925
-----------
The accompanying notes are an integral part of these financial statements.
<PAGE>
CARL DOMINO EQUITY INCOME FUND
SCHEDULE OF INVESTMENTS
April 30, 1996
(Unaudited)
Shares Value
- -------- -------
MONEY CENTER BANKS 2.27%
300 Chemical Bank Corp. $ 20,662
-----------
SAVINGS & LOANS 3.35%
700 Ahmanson H F & Co. 16,625
600 Great Western 13,800
-----------
30,425
-----------
CONGLOMERATES/SPECIAL SITUATIONS 1.67%
1,000 Hanson PLC ADR 15,125
-----------
MISCELLANEOUS 3.96%
2,000 Orange PLC ADR* 36,000
-----------
REIT's 2.70%
700 Glimcher Realty Trust 11,987
600 Security Capital Pacific Trust 12,525
-----------
24,512
-----------
CHEMICAL 2.25%
600 Witco Corp. 20,475
-----------
The accompanying notes are an integral part of these financial statements.
<PAGE>
CARL DOMINO EQUITY INCOME FUND
SCHEDULE OF INVESTMENTS
April 30, 1996
(Unaudited)
Shares Value
- -------- --------
PAPER & FOREST PRODUCTS/PACKAGING 3.72%
303 International Paper Co. $12,082
400 Union Camp Corp. 21,750
-----------
33,832
-----------
COSMETICS 2.11%
400 Tambrands Inc. 19,150
-----------
DIVERIFIED/SUPPLIES/HOSPITALS/NURSING 2.30%
400 US Healthcare Inc. 20,850
-----------
DRUGS 9.62%
1,000 Adac Labs 16,375
150 American Home Products Corp. 15,825
800 Glaxo Welcome PLC ADR 19,300
500 Pharmacia & Upjohn Inc. 19,125
150 Warner Lambert Co. 16,763
-----------
87,388
-----------
FOOD 3.32%
300 General Mills 16,650
400 Heinz H J Co. 13,550
-----------
30,200
-----------
HEALTHCARE 0.97%
200 Baxter International Inc. 8,850
-----------
The accompanying notes are an integral part of these financial statements.
<PAGE>
CARL DOMINO EQUITY INCOME FUND
SCHEDULE OF INVESTMENTS
April 30, 1996
(Unaudited)
Shares Value
- -------- -------
STAPLES/MISCELLANEOUS SERVICES 6.06%
600 Block H & R Inc. $ 21,075
300 Deluxe Corp. 10,500
1,250 New England Business Service Inc. 23,438
-----------
55,013
-----------
TOBACCO 1.49%
150 Phillip Morris Cos. Inc. 13,519
-----------
COMPUTER SOFTWARE & SERVICE 1.57%
500 Compuserve Corp.* 14,250
-----------
PHOTOGRAPHY/OFFICE EQUIPMENT 3.13%
200 Eastman Kodak Co. 15,300
200 Minnesota Mining & Manufacturing Co. 13,150
-----------
28,450
-----------
UTILITIES 1.93%
600 Telefonica de Argentina S A ADR 17,550
-----------
TOTAL COMMON STOCKS (COST $793,969) 845,073
-----------
TOTAL INVESTMENTS (Cost $793,969) 93.03% 845,073
Other Assets less Liabilities 6.97% 63,310
-------- -----------
TOTAL NET ASSETS 100.00% $ 908,383
======== ===========
<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
April 30, 1996
(Unaudited)
<S> <C>
ASSETS:
Investment in common stock at market value
(identified cost--$793,969)(Note 1)............................ $845,073
Cash............................................................. 88,232
Receivable for securities sold................................... 13,876
Receivable for Fund shares sold.................................. 5,000
Dividends and interest receivable................................ 710
---------
TOTAL ASSETS.................................. 952,891
---------
LIABILITIES:
Payable for securities purchased................................. 42,928
Accrued advisory fee............................................. 1,147
Accrued operating expenses....................................... 433
---------
TOTAL LIABILITIES............................. 44,508
---------
NET ASSETS (equivalent to $11.09 per share based on
81,932 shares of common stock outstanding)--(Note 4)...... $908,383
=========
NET ASSETS CONSIST OF:
Paid in capital (Note 4)....................................... $844,136
Undistributed net investment income/(loss)..................... 2,622
Accumulated undistributed net realized gain/(loss) from security
transactions................................................. 10,521
Net unrealized appreciation/(depreciation) of investments........ 51,104
---------
NET ASSETS APRIL 30, 1996........................................ $908,383
=========
</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 April 30, 1996
(Unaudited)
<S> <C>
INVESTMENT INCOME:
Dividends...................................................... $7,289
Interest....................................................... 242
---------
TOTAL INVESTMENT INCOME..................................... 7,531
---------
OPERATING EXPENSES:
Investment advisory fee (Note 3)............................... 4,076
Trustees' fees................................................. 833
---------
TOTAL OPERATING EXPENSES..................................... 4,909
---------
NET INVESTMENT INCOME/(LOSS)................................. 2,622
---------
NET REALIZED AND UNREALIZED GAINS/(LOSSES)
ON INVESTMENTS:
Net realized gain/(loss) on security transactions.............. 10,521
Net change in unrealized appreciation/(depreciation) on
investments.................................................. 51,104
---------
NET GAIN/(LOSS) ON INVESTMENTS................................ 61,625
---------
NET INCREASE/(DECREASE) IN NET ASSETS RESULTING FROM
OPERATIONS................................................... $64,247
=========
</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 ended April 30, 1996
(Unaudited)
<S> <C>
INCREASE/(DECREASE) IN NET ASSETS FROM OPERATIONS:
Net investment income/(loss)................................... $ 2,622
Net realized gain/(loss) from securities transactions.......... 10,521
Net change in unrealized appreciation/(depreciation) of investments
during the period........................................... 51,104
---------
NET INCREASE/(DECREASE) IN NET ASSETS FROM
OPERATIONS.................................................. 64,247
---------
DISTRIBUTION TO SHAREHOLDERS:
Net investment income......................................... 0
Realized gain................................................. 0
---------
0
---------
FUND SHARE TRANSACTIONS:
Shares sold.................................................... 826,032
Shares issued in reinvestment of dividends..................... 0
Shares redeemed................................................ (6,896)
---------
TOTAL CAPITAL STOCK 819,136
---------
NET INCREASE/(DECREASE) IN NET ASSETS............................ 883,382
---------
NET ASSETS:
Beginning of period........................................... 25,000
---------
End of period.................................................. 908,383
=========
</TABLE>
The accompanying notes are an integral part of these financial statements.
<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 April 30, 1996
(Unaudited)
<S> <C>
Net asset value - beginning of period.......................... $10.00
--------
Income from investment operations:
Net investment income.......................................... .04
Net gain on investments both realized and unrealized........... 1.05
--------
Total from investment operations............................... 1.09
--------
Less distributions:
Dividends from net investment income........................... 0
Dividends from capital gains................................... 0
--------
Net asset value- end of period................................. $11.09
========
Total Return**................................................. 26.25%
Ratio/supplemental data:
Net assets, end of period (in 000's)........................... 908
Ratio of expenses to average net assets**...................... 1.79%
Ratio of net investment income to average net assets**......... .96%
Portfolio turnover rate........................................ 26.00%
Average Commission rate paid................................... .0538
<FN>
** Annualized
</FN>
</TABLE>
The accompanying notes are an integral part of these financial statements.
<PAGE>
CARL DOMINO EQUITY INCOME FUND
Notes to Financial Statements
April 30, 1996
(Unaudited)
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
April 30, 1996
(Unaudited)
Federal Income Taxes - The Fund intends to qualify each year as a "regulated
investment company" under the Internal Revenue Code of 1986, as amended. By so
qualifying, the Fund will not be subject to federal income taxes to the extent
that it distributes substantially all of its net investment income and any
realized capital gains.
Dividends and Distributions - The Fund intends to distribute substantially all
of its net investment income as dividends to its shareholders on an annual
basis. The Fund intends to distribute its net long term capital gains and its
net short term capital gains at least once a year.
Other - The Fund follows industry practice and records security transactions on
the trade date. The specific identification method is used for determining
gains or losses for financial statements and income tax purposes. Dividend
income is recorded on the ex-dividend date and interest income is recorded on
an accrual basis.
NOTE 3. INVESTMENT ADVISORY AGREEMENT
The Fund retains 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 persons, trustees, and extraordinary expenses. As
compensation for its management services and agreement to pay the Fund's
expenses, the Fund is obligated to pay the Adviser a fee computed and accrued
daily and paid monthly at an annual rate of 1.50% of the average daily net
assets of the Fund. The rate of the advisory fees paid by most investment
companies to their investment advisers is lower than the rate of the advisory
fees paid by the Fund. In this regard, it should be noted that most investment
companies pay 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 April 30, 1996, the Adviser has received a fee of
$4,076 from the Fund.
<PAGE>
CARL DOMINO EQUITY INCOME FUND
Notes to Financial Statements
April 30, 1996
(Unaudited)
NOTE 4. CAPITAL SHARE TRANSACTIONS
As of April 30, 1996 there was an unlimited number of no par value shares of
capital stock authorized for the Fund.
Transactions in capital stock were as follows:
<TABLE>
For the period from
November 6, 1995 (Commencement of
Operations) through April 30, 1996
<S> <C> <C>
Shares Amount
--------- ----------
Shares sold 80,072 $826,032
Shares issued in reinvestment
of dividends 0 0
Shares redeemed (640) (6,896)
--------- ---------
Net increase 79,432 $819,136
========= =========
Total paid in capital $844,136 ========
</TABLE>
NOTE 5. INVESTMENTS
For the period from November 6, 1995 (commencement of operations) through
April 30, 1996, purchases and sales of investment securities, other than short-
term investments, aggregated $949,075 and $152,797 respectively. The gross
unrealized appreciation for all securities totaled $61,176 and the gross
unrealized depreciation for all securities totaled $10,072 for a net unrealized
appreciation of $51,104. The aggregate cost of securities for federal income
tax purposes at April 30, 1996 was $793,969.
