June 1997
Dear Shareholders:
<PAGE>
Once again, we are pleased to present the investment results for the Carl
Domino Equity Income Fund. Since inception in December 1995, the Fund has
returned 35.2%, keeping pace with the S&P 500 while taking less risk and
significantly outperforming many of our competitors. Over the past six months,
the Fund has been ranked one of the top in its class in the Wall Street Journal
and the Dow Jones Investment Advisor.
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C>
Comparative Investment Dec. 1st Qtr. 2nd Qtr. 3rd Qtr. 4th Qtr. YTD
Returns 1995 1996 1996 1996 1996 1997
- ----------------------------------- -------- ------- -------- --------
Carl Domino Equity Income Fund 3.0% 5.2% 6.6% 2.4% 8.4% 5.6%
S&P 500 * 1.7% 5.4% 4.4% 3.1% 8.4% 8.8%
Average Annual Return 15.06%
</TABLE>
<PAGE>
* 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 April 30,1997. 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.
During the first part of 1997 the markets experienced significant
volatility. The major focus centered around the Federal Reserve, which raised
rates in an effort to slow the economy as a pre-emptive strike on inflation.
While inflationary pressures must be monitored, not all the news is negative.
There are worldwide disinflationary pressures. Many corporations continue to
lower costs and investigate opportunities for additional revenues. As long as
consumer confidence is high, the increases in disposable income will ultimately
produce higher levels of final demand. Indeed, any signs of weakness would allow
the Fed to reverse course in order to assure sustained growth.
The Fund's investment strategy is designed to participate in robust
equity markets while minimizing downside risk in poor markets. Carl Domino
Associates, L.P. continues to look for stocks which provide capital appreciation
opportunities with downside protection. In these uncertain markets, we believe
dividends will play a more important role in total returns than they did in the
last two years, and that our larger companies with above-average yields will
provide superior relative investment performance. 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
<TABLE>
<CAPTION>
CARL DOMINO EQUITY INCOME FUND
Schedule of Investments April 30, 1997 (Unaudited)
<S> <C> <C>
Common Stock - 99.2% Shares Value
Basic Industries
Chemicals - 4.1%
Millennium Chemicals 2,000 $ 35,500
Witco Corp. 1,400 52,325
-----------------
87,825
-----------------
Paper & Forest Products - 1.6%
Union Camp Corp. 700 34,038
-----------------
Durables
Autos, Tires & Accessories - 4.6%
Echlin, Inc. 1,400 45,675
Tenneco Inc. 1,300 51,837
-----------------
97,512
-----------------
Energy
Oil & Gas - 13.5%
Midcoast Energy Resources 2,500 34,062
Mobil Corporation (a) 350 45,500
Questar Corp. 500 19,000
Sonat Corporation 800 45,700
Sun Co., Inc. 1,500 41,062
USX Marathon Group (a) 1,300 35,912
Williams Companies 800 35,100
YPF Sociedad Anonima 1,200 33,150
-----------------
289,486
-----------------
Media & Leisure
Publishing & Entertainment - 0.7%
Cedar Fair L.P. 400 15,900
-----------------
Publishing - 1.6%
Readers Digest Association 1,520 34,960
-----------------
Entertaiment - 0.7%
Premier Parks Inc. 500 14,813
-----------------
Retail - 8.9%
ADT Limited 1,900 52,012
Intimate Brands 2,100 39,113
May Department Stores 900 41,625
Penney (J.C.) 1,200 57,300
-----------------
190,050
-----------------
Non-Durables
Cosmetics - 5.0%
International Flavors & Fragrances 1,200 50,550
Tambrands Inc. 1,200 56,400
-----------------
106,950
-----------------
CARL DOMINO EQUITY INCOME FUND - continued
Common Stocks - continued Shares Value
Food - 5.5%
General Mills 300 $ 18,600
Heinz (H.J.) 1,200 49,800
Quaker Oats 1,200 48,000
-----------------
116,400
-----------------
Household Products - 1.9%
Kimberly-Clark 800 41,000
-----------------
Tobacco - 1.9%
Philip Morris 1,050 41,344
-----------------
Health
Drugs - 7.2%
American Home Products 1,000 46,375
Bristol-Myers Squibb Co. 540 35,370
Glaxo Wellcome PLC 1,300 51,187
Pharmacia & Upjohn Inc. 700 20,738
-----------------
153,670
-----------------
Health Care - 2.2%
Baxter International Inc. 1,000 47,875
-----------------
Staples/Miscellaneous Services - 1.6%
Deluxe Corporation 1,100 33,688
-----------------
Services/Miscellaneous - 0.7%
Unisource Worldwide 1,000 14,750
-----------------
Electrical Equipment - 2.6%
Thomas & Betts 1,200 54,450
-----------------
Airlines, Truckers, & Railroads - 3.6%
Union Pacific Corp. (a) 1,200 76,500
-----------------
Computer Software & Services - 0.6%
Checkpoint Software (a) 500 11,812
-----------------
Photography/Office Equipment - 4.0%
Eastman Kodak 500 41,750
Minnesota Mining & Manufacturing (a) 500 43,500
-----------------
<PAGE>
85,250
CARL DOMINO EQUITY INCOME FUND - continued
Common Stocks - continued Shares Value
Finance
Major Regional & Other Banks - 6.6%
Chase Manahattan Corp. (a) 300 $ 27,788
Corestates Financial 800 40,500
Nationsbank 522 31,516
South Trust Corp. 1,100 41,113
-----------------
140,917
-----------------
Insurance-multi/ Property, Casualty & Life - 4.4%
American States Financial 500 16,750
GCR Holdings Ltd. (a) 900 19,462
ITT Hartford Financial Services Group 400 29,800
Lincoln National Corp. 500 28,000
-----------------
94,012
-----------------
Savings & Loans - 3.0%
Ahmanson H.F. (a) 700 26,688
Great Western Financial Corp. (a) 900 37,800
-----------------
64,488
-----------------
Utilities
Natural Gas - 4.4%
Atmos Energy Corp. 1,500 33,938
El Paso Natural Gas Company 1,027 59,694
-----------------
93,632
-----------------
Telephone Other - 3.6%
AT&T Corp. 900 30,150
Frontier Corp. 3,000 47,625
-----------------
77,775
-----------------
REITs 1.8%
Arden Realty Group 500 12,438
Glimcher Realty Corp. 700 12,512
Security Capital Pacific Trust 600 13,650
-----------------
38,600
-----------------
Miscellaneous - 2.9%
Cienna Corp. (a) 500 15,626
Guilford Pharmicuticals Inc. 46,250
-----------------
61,876
-----------------
TOTAL COMMON STOCKS - 99.2% 2,119,573
=================
Money Market Securities - 0.4%
Star Treasury 4.96% 12/31/97(Cost $9,156) 9,156
-----------------
TOTAL INVESTMENTS - 99.2% (Cost $1,927,498) 2,128,729
Other Assets less liabilities - 0.4% 9,345
-----------------
TOTAL NET ASSETS - 100% 2,138,074
-----------------
<FN>
(a) non-income producing
</FN>
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Carl Domino Equity Income Fund April 30,1997
Statement of Assets & Liabilities (Unaudited)
<S> <C> <C>
Assets
Investment in securities, at value (cost $1,924,499) $ 2,128,729
Subscriptions receivable 7,070
Dividends receivable 4,356
Interest receivable 89
Reimbursement receivable 814
------------------
Total assets 2,141,058
Liabilities
Accrued investment advisory fee payable 2,501
Other payables and accrued expenses $ 483
-----------------
Total liabilities 2,984
------------------
Net Assets 2,138,074
==================
Net Assets consist of:
Paid in capital $ 1,852,855
Accumulated undistributed net investment income 8,944
Accumulated undistributed net realized gain (loss) on investments 72,045
Net unrealized appreciation (depreciation) of investments 204,230
------------------
Net Assets, for 160,667 shares $ 2,138,074
==================
Net Asset Value
Net Assets
Offering price and redemption price per share ($2,137,260/160,667) $ 13.31
==================
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Carl Domino Equity Income Fund
Statement of Operations for the six month period ended April 30, 1997 (Unaudited)
<S> <C> <C>
Investment Income
Dividend income $ 22,689
Interest income 89
------------------
Total Investment Income 22,777
Expenses
Investment advisory fee $ 11,708
Trustees' fees 814
------------------
Total Expenses 12,522
Reimbursed trustees fees (814)
------------------
11,708
------------------
Net Investment Income (Loss) 11,069
------------------
Realized & Unrealized Gain (Loss)
Net realized gain (loss) on investment transactions 72,045
Change in net unrealized appreciation (depreciation) on
investment securities 77,489 149,534
------------------ ------------------
Net gain (loss)
Net increase (decrease) in net assets resulting $ 160,603
==================
from operations
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Carl Domino Equity Income Fund November 6, 1995
Statement of Changes (Unaudited) For the six months (commencement of
ended April 30, operations) to October 31,
<S> <C> <C>
1997 1996
Increase/(Decrease) in Net Assets
Operations
Net investment income (loss) $ 11,069 11,996
Net realized gain (loss) on investment transactions 72,045 8,455
Change in net unrealized appreciation (depreciation) 77,489 126,741
-------------- --------------
Net Increase (decrease) in net assets resulting from operations 160,603 147,192
-------------- --------------
Distributions to shareholders:
From net investment income (22,578) 0
-------------- --------------
Capital Share Transactions
Net proceeds from sale of shares 1,123,013 971,640
Shares issued in reinvestment of distributions 20,593 0
Shares redeemed (266,203) (21,186)
-------------- --------------
Net increase (decrease) in net assets resulting
from share transactions 877,403 950,454
-------------- --------------
Total increase (decrease) in net assets 1,015,428 1,097,646
Net Assets
Begining of period 1,122,646 25,000
-------------- --------------
End of period including undistributed net investment income
of $11,069 and $11,996, respectively. $ 2,138,074 1,122,646
============== ==============
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Carl Domino Equity Income Fund
Financial Highlights (Unaudited) November 6,1997
Six months ended (Commencement of Operations)
April 30, to October 31,
Selected Per Share Data 1997 1996
-------------- --------------
<S> <C> <C>
Net asset value,
begining of period $12.03 $10.00
-------------- --------------
Income from investment
Operations
Net investment income 0.08 0.16
Net realized and
unrealized gain (loss) 1.41 1.87
-------------- --------------
Total from investment operations 1.49 2.03
-------------- --------------
Less Distributions
From net investment income (0.22) 0.00
-------------- --------------
Net asset value,
end of period $13.31 $12.03
Total Return (a) 24.99% 20.30%
Ratios and Supplemental Data
Net assets, end of period (000) $2,138 $1,122
Ratio of expenses to average
net assets before expense reductions 1.60% 1.73%
Ratio of expenses to
average net assets (a) 1.60% 1.51%
Ratio of net investment income to average
net assets before expense reductions (a) 1.31% 1.35%
Ratio of net investment income to
average net assets (a) 1.41% 1.57%
Portfolio turnover rate (a) 54.54% 62.51%
Average commission rate 0.0137 0.0604
<FN>
(a) Annualized
</FN>
</TABLE>
<PAGE>
CARL DOMINO EQUITY INCOME FUND
Notes to Financial Statements
April 30, 1997
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.
CARL DOMINO EQUITY INCOME FUND
Notes to Financial Statements
April 30, 1997
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 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 1.50% 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 1, 1996 through April 30,
1997, the Adviser has received a fee of $11,708 from the Fund.
CARL DOMINO EQUITY INCOME FUND
Notes to Financial Statements
April 30, 1997
NOTE 4. CAPITAL SHARE TRANSACTIONS
As of April 30, 1997 there was an unlimited number of no par value shares of
capital stock authorized for the Fund. Paid in capital at April 30, 1997 was
$1,852,855.
Transactions in capital stock were as follows:
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C>
For the period from For the period
November 6, 1995 from November 6,
(Commencement of 1995 (Commencement
Operations) through of Operations)
For the six month For the six month October 31, 1996 through October
period ended April period ended April 31, 1996
30, 1997 30, 1997
Shares Dollars Shares Dollars
Shares sold 86,802 $1,123,013 92,689 $971,640
Shares issued in
reinvestment of
dividends 1,664 20,593 0 0
Shares redeemed (20,901) (266,203) (1,893) (21,186)
-------- --------- ------- --------
67,565 877,403 90,796 $950,454
</TABLE>
NOTE 5. INVESTMENTS
For the period from November 1, 1996 through April 30, 1997, purchases and
sales of investment securities, other than short-term investments, aggregated
$1,271,896 and $406,277 respectively. The gross unrealized appreciation for all
securities totaled $265,465 and the gross unrealized depreciation for all
securities totaled $61,235 for a net unrealized appreciation of $204,230. The
aggregate cost of securities for federal income tax purposes at April 30, 1997
was $1,924,498.
<PAGE>
CARL DOMINO EQUITY INCOME FUND
Notes to Financial Statements
April 30, 1997
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 April 30, 1997, 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.
<TABLE>
<CAPTION>
<PAGE>
GLOBALT Growth Fund
Schedule of Investments April 30, 1997 (Unaudited)
<S> <C> <C>
Common Stock - 100.9% Shares Value
Business Equipment & Services - 4.3%
Electronic Data Systems (a) 1,850 $ 61,743
Interpublic Group 850 48,131
Omnicom Group 1,450 76,850
--------------
186,724
--------------
Capital Goods - 7.0%
Caterpillar, Inc. 550 48,950
General Electric Co. 1550 171,856
Molex, Inc. 1500 46,500
US Filter (a) 1300 39,488
--------------
306,794
--------------
Consumer Non-Durables - 15.8%
Avon Products Inc. 1,800 110,925
Coca Cola Company 2,250 143,156
Estee Lauder 1,000 45,750
Gilette Co. (a) 1,300 110,500
Nike Inc. Class B (a) 1,450 81,563
Pioneer Hi Bred International (a) 1,500 105,938
Procter & Gamble Co. 700 88,025
--------------
685,857
--------------
Consumer Services - 5.7%
Coleman Co. (a) 2,800 43,400
Disney (Walt) Co. 500 41,000
Mattel Inc. 2,300 64,113
Time Warner 2,200 99,000
--------------
247,513
--------------
Energy Sector - 9.2%
Apache Corp. 2,300 78,200
Halliburton Co. 1,500 105,938
Mobil Corp. 700 91,000
Texaco Inc. 1,200 126,600
--------------
401,738
--------------
Financial Services - 17.0%
AFLAC Inc. 1,900 81,700
American Express 1,600 105,400
American International Group 950 122,075
Citicorp 1,150 129,519
Franklin Resources 1,500 88,688
Morgan (J.P.) & Co. 600 61,125
Marsh & McLennan 700 48,200
Morgan Stanley Group 1,600 101,000
--------------
737,707
--------------
Health Care - 16.3%
Bristol Myers Squibb 1,500 98,250
Guidant Corp. 1,450 98,963
Johnson & Johnson 2,012 123,235
Lilly Eli & Co. 1,050 92,269
<PAGE>
GLOBALT Growth Fund
Common Stock - continued
Healthcare - continued Shares Value
Merck & Co. 1,100 $ 99,550
Pfizer Inc. 1,200 115,200
United States Surgical 2,400 82,200
--------------
709,667
--------------
Raw Materials - 2.4%
DuPont DeNemours 500 53,063
IMC Global 1,450 53,469
--------------
106,532
--------------
Shelter Sector - 2.0%
Kimberly Clark Corp. 1,700 87,125
--------------
Technology Sector - 17.7%
Boeing Co. 1000 98,625
Cicso Systems Inc. 1,650 85,387
Computer Associates International 1,725 89,700
Hewlett Packard Co. 1,900 99,750
Intel Corp. 750 114,843
Lucent Technologies 1,140 67,402
Micron Technology 1,600 56,400
Microsoft Corp. 700 85,050
Seagate Technology 900 41,288
Xilinx Inc. 600 29,400
--------------
767,845
--------------
Transportation - 3.5%
AMR Corp. 1,100 102,436
Air Express International 1,400 47,950
--------------
150,386
--------------
Total Common Stock (Cost $3,786,741) 71,377 4,387,888
--------------
Money Market Securities - 12.9%
Star Treasury 560,464
--------------
Total Money Market Securities (Cost $560,464)
TOTAL INVESTMENTS (Cost $4,347,205) 4,948,352
==============
Other Assets less liabilities - 13.8% (143,161)
Total Net Assets - 100% 4,805,191
<FN>
==============
(a) non-income producing
</FN>
</TABLE>
<TABLE>
<CAPTION>
GLOBALT Growth Fund April 30,1997
Statement of Assets & Liabilities (Unaudited)
<S> <C> <C>
Assets
Investment in securities, at value (cost $4,347,205) $ 4,948,352
Dividends receivable 2,506
Interest receivable 711
Reimbursement receivable from advisor 814
------------------
Total assets 4,952,383
Liabilities
Payable for investments purchased $ 142,360
Accrued management fee payable 4,351
Other payable and accrued expenses $ 481
-----------------
Total liabilities 147,192
------------------
Net Assets 4,805,191
==================
Net Assets consist of:
Paid in capital $ 4,153,053
Accumulated undistributed net investment income (478)
Accumulated undistributed net realized gain (loss) 51,469
Net unrealized appreciation (depreciation) on investments 601,147
------------------
Net Assets, for 359,454 shares 4,805,191
==================
Net Asset Value
Net Assets
Offering price and redemption price per share ($4,805,191/359,454) $ 13.37
==================
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
GLOBALT Growth Fund
Statement of Operations (Unaudited)
<S> <C> <C>
Investment Income
Dividend Income $ 23,669
Interest Income 711
------------------
Total Income 24,379
Expenses
Management fee $ 24,857
Trustees' fees 814
------------------
Total Expenses before reimbursement 25,671
Reimbursed Trustees fees (814)
------------------
Total Expenses 24,857
------------------
Net Investment Income (Loss) (478)
------------------
Realized & Unrealized Gain (Loss)
Net realized gain (loss) on investment securities 52,086
Change in net unrealized appreciation (depreciation) on
investment securities 292,966 345,052
------------------ ------------------
Net gain (loss)
Net increase (decrease) in net assets resulting $ 344,574
==================
from operations
</TABLE>
<TABLE>
<CAPTION>
GLOBALT Growth Fund December 1, 1995
Statement of Changes (Unaudited) For the six months (commencement of
ended April 30, operations) to October 31,
1997 1996
<S> <C> <C>
Increase/(Decrease) in Net Assets
Operations
Net investment income (loss) $ (478) 2,033
Net realized gain (loss) 52,086 51,568
Change in net unrealized appreciation (depreciation) 292,966 308,181
-------------- -----------------
Net Increase (decrease) in net assets resulting from operations 344,574 361,782
-------------- -----------------
Distributions to shareholders:
From net investment income (2,033) 0
-----------------
From net realized gain (52,185)
--------------
Total Distributions (54,218)
Share Transactions
Net proceeds from sale of shares 1,072,078 3,056,354
Shares issued in reinvestment 54,217 0
Shares redeemed (54,537) (60)
-------------- -----------------
Net increase (decrease) in net assets resulting
from share transactions 1,071,758 3,056,294
-------------- -----------------
Total increase (decrease) in net assets 1,362,115 3,418,076
Net Assets
Begining of period 3,443,076 25,000
-------------- -----------------
End of period, including undistributed net investment income (loss)
of $(478) and $2,033, respectively $ 4,805,191 3,443,076
============== =================
</TABLE>
<TABLE>
<CAPTION>
GLOBALT Growth Fund December 1, 1995
Financial Highlights (Unaudited) For the six months (commencement of
ended April 30, operations) to October 31,
Selected Per Share Data 1997 1996
<S> <C> <C>
Net asset value,
begining of period $12.48 $10.00
-------------- --------------
Income from investment
Operations
Net investment income 0.00 0.01
Net realized and
unrealized gain (loss) 1.06 2.47
-------------- --------------
Total from investment operations 1.06 2.48
-------------- --------------
Less Distributions
From net investment income (0.17) 0.00
-------------- --------------
Net asset value,
end of period $13.37 $12.48
Total Return (a) 4.50% 24.80%
Ratios and Supplemental Data
Net assets, end of period (000) $4,805 $3,443
Ratio of expenses to
average net assets (a)(b) 1.17% 1.16%
Ratio of expenses to average net assets
before reimbursement (a) (b) 1.21% 1.25%
Ratio of net investment income to
average net assets (a) -0.06% 0.11%
Ratio of net investment income to average
net assets before reimbursement (a) (b) 0.00% 1.25%
Portfolio turnover rate (a) 0.9243 0.6642
Average commission rate 0.047 0.074
<FN>
(a) Annualized
(b) Expense ratio is net of reimbursement of trustees' fees. The advisor
voluntarily reimbursed the fund for trustees fees and and has agreed to do
so until October 31, 1997.
</FN>
</TABLE>
<PAGE>
GLOBALT GROWTH FUND
NOTES TO FINANCIAL STATEMENTS
April 30, 1997
1. ORGANIZATION
The GLOBALT Growth Fund Inc. (the "Fund") is organized as a series of the
AmeriPrime Funds, an Ohio business trust (the "Trust"). 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
April 30, 1997
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 November 1, 1996 through April 30,
1997, the Adviser has received a fee of $24,857 from the Fund.
<PAGE>
GLOBALT GROWTH FUND
NOTES TO FINANCIAL STATEMENTS
April 30, 1997
NOTE 4. CAPITAL SHARE TRANSACTIONS
As of April 30, 1997 there was an unlimited number of no par value shares of
capital stock authorized for the Fund. Paid in capital at April 30, 1997 was
$4,153,053.
<TABLE>
<CAPTION>
Transactions in capital stock were as follows:
<S> <C> <C> <C> <C>
For the period from For the period
December 1, 1995 from December 1,
(Commencement of 1995 (Commencement
Operations) through of Operations)
For the six month For the six month October 31, 1996 through October
period ended April period ended April 31, 1996
30, 1997 30, 1997
Shares Dollars Shares Dollars
Shares sold 83,484 $1,075,078 273,421 $3,056,354
Shares issued in
reinvestment of
dividends 4,216 54,217 0 0
Shares redeemed (4,162) (54,537) (5) (60)
------- -------- --- ----
83,538 $1,074,758 273,416 $3,056,294
</TABLE>
NOTE 5. INVESTMENTS
For the period from November 1, 1996 through April 30, 1997, purchases and sales
of investment securities, other than short-term investments, aggregated
$2,709,004 and $1,907,115, respectively. The gross unrealized appreciation for
all securities totaled $660,296 and the gross unrealized depreciation for all
securities totaled $59,149 for a net unrealized appreciation of $601,147. The
aggregate cost of securities for federal income tax purposes at October 31, 1996
was $4,347,206.
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.
<PAGE>
AIT Vision Fund
Investment Results - For the Period Ended April 30, 1997
Dear Fellow Shareholders:
Since the October 31, 1996 fiscal year end, the AIT Vision Fund appreciated 3.9%
for the six months ended April 30, 1997. According to Lipper Analytical
Services, Inc. the average return during this six month period for a peer group
of 799 growth funds was 7.2%. The unmanaged S&P 500 and Russell 3000 indices
advanced 14.7% and 11.9%, respectively, during the same six month period.
Comparative investment results are displayed below.
<TABLE>
<CAPTION>
<S> <C> <C>
- ------------------------------------------------ - ----- ------------------- ------- -----------------
Returns for the Periods Ended 4/30/97
- ------------------------------------------------ - ----- ------------------- ------- -----------------
Since Inception Average
Fund/Index 1 Year 12/28/95 Annual
- ---------- ------ -------- ------
AIT Vision Fund 18.2% 31.2% 22.4%
S&P 500 25.1% 34.1% 24.4%
Russell 3000 20.0% 29.4% 21.1%
- ------------------------------ -------- ---------------- ------------------- ------- -----------------
</TABLE>
Comparison of the Change in Value of a $10,000 Investment in AIT Vision Fund,
the Unmanaged S&P 500 Index, and the Unmanaged Russell 3000 Index
CHART
This chart shows the value of a hypothetical initial investment of $10,000 in
the Fund, the S&P 500 Index, and the Russell 3000 Index on December 28, 1995 and
held through April 30, 1997. The S&P 500 Index and the Russell 3000 Index are
widely recognized unmanaged indices of common stock prices. Performance figures
include the change in value of the stocks in the indices, reinvestment of
dividends, and are not annualized. The index returns do not reflect expenses,
which have been deducted from the Fund's return. THE FUND'S RETURN REPRESENTS
PAST PERFORMANCE AND IS NOT PREDICTIVE OF FUTURE RESULTS.
<PAGE>
Commentary - "Vuja De: the distinct feeling that you have never seen
anything like this before"
Those investors who may have been lulled into complacency by the U.S. market's
steady, unwavering upward climb have certainly been awakened by the market's
gyrations during the last six to twelve months. What a ride it has been: the
market peaked in June 1996 and promptly bottomed within the subsequent month,
then rapidly rose to another peak in February 1997 only to dramatically rebound
from a sell off and extreme bearishness during April 1997. This April 1997
rebound has extended its gains to date and continues to defy the well documented
warnings of Alan Greenspan, Warren Buffet, and most of the "talking heads" on
the financial networks. These commentators either proclaim the market's
impending collapse based upon time tested valuation measures or they declare
that things are different this time, a sense of "vuja de" which is the distinct
feeling that one has never experienced anything quite like this before (the
opposite of the well known deja vu).
During this period of heightened volatility, pockets of extreme return
differences have emerged within the broad market. The table below details two of
these extreme differences that have directly impacted the performance of the AIT
Vision Fund.
- -----------------------------------------------------------------------------
Comparative Index Returns for the Period Ended 4/30/97
- -----------------------------------------------------------------------------
Index/Characteristic 6 Months 1 Year
- -------------------- -------- ------
Russell 1000 (Largecap Stocks) 13.1% 22.4%
Russell 800* (Midcap Stocks) 6.7% 10.9%
Russell 2000 (Smallcap Stocks) 1.6% 0.1%
Largecap less Smallcap 11.5% 22.3%
Russell Midcap Value Stocks 10.3% 3.9%
Midcap Value less Midcap Growth 7.5% 13.8%
- ---------------------------------------------- --------------- --------------
* Subset of the Russell 1000.
The quantitative investment strategy followed by the AIT Vision Fund has led us
to typically hold positions which are not highly concentrated among the largest
capitalization nor the smallest capitalization companies, but instead looks for
stocks with steady earnings growth prospects regardless of company size. These
general tendencies have been extremely out of favor recently within the broad
market. As of April 30, 1997, the trailing one year return difference between
largecap and smallcap stocks of 22.3% is the single largest one year difference
since 1979! Unless you have owned the largest companies in the market (e.g.,
General Electric, Coca Cola, Exxon), you have struggled as an investor to keep
pace. This largecap outperformance has been partly the result of investors
pouring money into the market at record levels with a preference for safer, more
liquid stocks. Thus as we spread the AIT Vision Fund's holdings over a universe
of about 3,000 stocks, the narrowness of the market's leadership has worked
against performance.
Furthermore, if you combined diversified capitalization holdings with a growth
stock emphasis, you have recently compounded your pain and performance
struggles. As of April 30, 1997, the trailing one year outperformance of midcap
value over midcap growth stocks of 13.8% is the second largest such difference
since 1981. Therefore, given the extreme uncommon performance differences within
the recent market, no wonder some commentators are proclaiming that things are
different this time.
Outlook
So which will it be? Will the traditional valuation arguments for overvaluation
hold or is the present environment entirely different from the past? Our belief
is best summarized by Mark Twain who said, "The past doesn't repeat itself, but
it sure does rhyme." To us this means that an investor must study the market's
past behavior and be intelligent in employing a discipline based upon sound
economic and financial analysis which adapts to the natural evolution of market
forces.
Looking forward, our belief is that market returns will gradually broaden into
the smaller company stocks; and, due to the gradual deceleration of the U.S.
economy, companies which can deliver earnings growth independent of a slowing
business cycle will be rewarded. Therefore, we believe that the typical biases
of the AIT Vision Fund position it to benefit from these trends as they develop
in the future. Listed below are the top holdings of the AIT Vision Fund as of
April 30, 1997.
- --------------------------------------------------- -------------------- -
Ten Largest Holdings
- --------------------------------------------------- -------------------- -
Percent of
Net Assets
4/30/97
Walt Disney 3.49%
United Airlines 3.39%
Circuit City Stores 3.27%
Microsoft 3.12%
Cigna 3.00%
Enron Oil and Gas 2.92%
United Healthcare 2.91%
Georgia-Pacific 2.89%
Conseco 2.83%
Temple Inland 2.69%
-----
Total 30.51%
- ------------------------------------ ----------------------- ------------------
Thank you for your trust and continued confidence.
Respectfully,
Douglas W. Case, CFA
Managing Director of Portfolio Management
Advanced Investment Technology, Inc.
<PAGE>
<TABLE>
<CAPTION>
AIT Vision U.S. Equity Portfolio
Schedule of Investments April 30, 1997 (Unaudited)
<S> <C> <C>
Common Stock - 98.4% Shares Value
Apparel - 1.3%
TJX Companies Inc. 1,000 47,250
-----------------
Banks - 2.0%
Northern Trust Corp. 1,700 75,650
-----------------
Chemicals - 2.5%
Rohm & Hass & Co. 1,100 91,575
-----------------
Communications & Communications Equipment - 9.5%
Bell South Corp. 900 40,050
Century Telecommunications 2,200 65,725
Cincinnati Bell 1,600 89,600
Clear Channel Communications 900 43,650
Gentex Corp. 1,700 30,600
Worldcom Inc. 3,500 84,000
-----------------
353,625
-----------------
Computers, Periphals & Software- 16.3%
Adobe Systems Inc. 2,000 78,250
Cisco Systems Inc. 1,800 93,150
Comdisco Inc. 1,100 34,925
Computer Associates International 1,700 88,400
Dell Computer 700 58,581
EMC Corp. 1,400 50,925
Intel Corp. 600 91,875
Microsoft Corp. 900 109,350
-----------------
605,456
-----------------
Computer Office Equipment - 1.1%
Black & Decker Corp. 1,200 40,200
-----------------
Cosmetics - 2.5%
Colgate Palmolive 500 55,500
Proctor & Gamble Co. 300 37,725
-----------------
93,225
-----------------
Drugs - 6.6%
Abbott Labs 700 42,700
Bristol Myers Squibb 1,000 65,500
Johnson & Johnson 900 55,125
Merck & Co. Inc. 700 63,350
Pfizer Inc. 200 19,200
-----------------
245,875
-----------------
Electric Utilities - 1.1%
Union Electric Co. 1,200 42,750
-----------------
Energy - Oil & Gas - 6.1%
Anadarkko Petroleum Corp. 1,400 76,825
Enron Oil & Gas Co. 5,500 102,438
Ensco International Inc 1,000 47,500
-----------------
<PAGE>
226,763
-----------------
AIT Vision U.S. Equity Portfolio - continued
Common Stocks - continued
Financial Services - 1.8% Shares Value
Charles Schwab Corp. 1,800 65,925
-----------------
Food - 3.8%
Coca Cola Enterprises Inc. 1,600 96,600
Pepsico Inc. 1,300 45,338
-----------------
141,938
-----------------
Healthcare - 5.2%
Healthsouth Rehabilitation Corp. 4,600 90,850
United Healthcare 2,100 102,112
-----------------
192,962
-----------------
Holding Companies - 3.0%
McDermott International Inc. 2,000 37,000
Nipsco Industrial Inc. 1,000 39,500
Southern Co. 1,800 36,675
-----------------
113,175
-----------------
Industrial Machinery & Equipment - 1.5%
U.S. Filter Corp. 1,900 57,713
-----------------
Insurance - 8.7%
Cigna Corp. 700 105,263
Conseco Inc. 2,400 99,300
Travelers Group 1,000 55,375
Washington Mutual Inc. 1,300 64,187
-----------------
324,125
-----------------
Grocery - 1.7%
Safeway Inc. 1,425 63,591
-----------------
Hotels/Restaurants - 1.8%
Hilton Hotels Corp. 2,500 67,500
-----------------
Paper & Paper Products - 5.3%
Georgia Pacific Corp. 1,300 101,400
Temple Inland Inc. 1,700 94,350
-----------------
195,750
-----------------
Railroad - 1.6%
St. Joe Corp. 800 58,100
-----------------
Retail - 8.5%
American Stores Co. 1,300 59,150
Circuit City Stores Inc. 2,900 114,912
Dillard Department Stores Class A 3,000 92,625
GAP Inc. 1,500 47,812
-----------------
314,499
-----------------
Television, Video Production - 3.3%
Disney (Walt) Co. 1,500 123,000
-----------------
Transportation - 3.2%
UAL Corp. 1,600 119,000
-----------------
TOTAL COMMON STOCKS (Cost $3,590,933) $3,659,647
<PAGE>
-----------------
AIT Vision U.S. Equity Portfolio - continued
Money Market Securities - 1.6% Principal Amount
Star Treasury 4.160%, 12/31/97 $59,597 $59,596
-----------------
Total Bonds & Notes (Cost $59,597)
TOTAL INVESTMENTS - 100.0%
Cost $3,650,529 $3,719,243
-----------------
Other Assets less liabilities - 0.0% (364)
-----------------
TOTAL NET ASSETS - 100% $3,718,879
=================
</TABLE>
<TABLE>
<CAPTION>
AIT Vision U.S. Equity Portfolio April 30,1997
Statement of Assets and Liabilities (Unaudited)
<S> <C> <C>
Assets
Investment in securities, at value (cost $3,650,529) $ 3,719,243
Reveivable for securities sold 73,920
Dividends receivable 3,438
Interest receivable 157
Receivable from advisor for trustees fees 876
------------------
Total assets 3,797,634
Liabilities
Accrued advisory fee $ 76,152
Accrued trustees' fees 2,061
Other payables and accrued expenses 542
-----------------
Total liabilities 78,755
------------------
Net Assets 3,718,879
==================
Net Assets consist of:
Paid in capital $ 3,725,810
Undistributed net investment income (loss) 4,259
Undistributed net realized gain (loss) (79,904)
Net unrealized appreciation (depreciation) on investments 68,714
------------------
Net Assets, for 323,716 shares 3,718,879
==================
Net Asset Value
Net Assets
Offering price and redemption price per share ($3,718,879/323,716) $ 11.49
==================
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
AIT Vision U.S. Equity Portfolio
Statement of Operations for the Six month period ended April 30, 1997 (Unaudited)
<S> <C> <C>
Investment Income
Dividend Income $ 9,114
Interest Income 159
------------------
Total Income 9,273
Expenses
Investment advisory fee $ 5,013
Trustee's fees 876
------------------
Total Expenses before reimbursement 5,889
Reimbursed trustees fees (876)
------------------
Total operating expenses 5,013
------------------
Net Investment Income (Loss) 4,259
------------------
Realized & Unrealized Gain (Loss)
Net realized gain (loss) on investment securities (81,056)
Change in net unrealized appreciation (depreciation) on
investment securities 34,579
------------------ ------------------
Net gain (loss) (46,477)
------------------
Net increase (decrease) in net assets resulting $ (42,218)
==================
from operations
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
AIT Vision U.S. Equity Portfolio
Statement of Changes (Unaudited) November 6, 1995
For the six months (commencement of
ended April 30, operations) to October 31,
<S> <C> <C>
Increase/(Decrease) in Net Assets 1997 1996
Operations
Net investment income (loss) $ 4,259 $ (2,866)
Net realized gain (loss) (81,056) 82,838
Change in net unrealized appreciation (depreciation) 34,579 34,135
--------------- --------------
Net Increase (decrease) in net assets resulting from operations (42,218) 114,107
--------------- --------------
Distributions to shareholders:
From net investment income 0 0
From net realized gain (81,686) 0
--------------- --------------
Total distributions (81,686)
Share Transactions
Net proceeds from sale of shares 3,152,207 536,013
Shares issued in reinvestment 81,686 0
Shares redeemed (18,269) (47,961)
--------------- --------------
Net increase (decrease) in net assets resulting
from share transactions 3,215,624 488,052
--------------- --------------
Total increase (decrease) in net assets 3,091,720 602,159
Net Assets
Begining of period $ 627,159 $ 25,000
--------------- --------------
End of period including undistributed net investment
income(loss) of $4,259 and $(2,866) $ 3,718,879 $ 627,159
=============== ==============
<PAGE>
</TABLE>
<TABLE>
<CAPTION>
AIT Vision U.S. Equity Portfolio
Financial Highlights (Unaudited) November 6, 1995
For the six months (commencement of
Selected Per Share Data ended April 30, operations) to October 31,
1997 1996
<S> <C> <C>
Net asset value,
begining of period $12.62 $10.00
-------------- --------------
Income from investment
Operations
Net investment income 0.03 (0.07)
Net realized and
unrealized gain (loss) 0.44 2.69
-------------- --------------
Total from investment operations 0.47 2.62
Less Distributions
From net investment income (1.60) 0.00
-------------- --------------
Net asset value,
end of period $11.49 $12.62
============== ==============
Total Return (a) -(18.05)% 31.03%
Ratios and Supplemental Data
Net assets, end of period (000) $3,719 $627
Ratio of expenses to
average net assets (a) 0.69% 1.87%
Ratio of expenses to
average net assets before reimbursement (a) 0.81% 1.87%
Ratio of net investment income to
average net assets (a) 0.58% -0.70%
Ratio of net investment income to
average net assets before reimbursement (a) 0.46%
Portfolio turnover rate (a) 179.07% 238.63%
Average commission rate 0.041 0.0471
(a) Annualized
</TABLE>
<PAGE>
AIT VISION U.S. EQUITY PORTFOLIO
Notes to Financial Statements
April 30, 1997
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.
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.
<PAGE>
AIT VISION U.S. EQUITY PORTFOLIO
Notes to Financial Statements
April 30, 1997
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 a controlling shareholder of the
Adviser. Douglas W. Case, CFA, Director of Equity Portfolio Management, Dean S.
Barr, Chairman and Chief Investment Officer, and Susan L. Reigel, Portfolio
Management, 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 0.70% 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 1, 1996
through April 30, 1997, the Adviser has received a fee of $5,013 from the Fund.
NOTE 4. CAPITAL SHARE TRANSACTIONS
As of April 30, 1997 there was an unlimited number of no par value shares of
capital stock authorized for the Fund. Paid in capital at April 30, 1997 was
$3,728,676.
Transactions in capital stock were as follows:
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C>
For the period from For the period
November 6, 1995 from November 6,
(Commencement of 1995 (Commencement
Operations) through of Operations)
For the six month For the six month October 31, 1997 through October
period ended April period ended April 31, 1997
30, 1997 30, 1997
Shares Dollars Shares Dollars
Shares sold 268,461 $3,152,207 51,315 $536,013
Shares issued in
reinvestment of
dividends 7,210 81,686 0 0
Shares redeemed (1,648) (18,269) (4,122) (47,961)
------- -------- ------- --------
274,023 $3,215,624 47,193 $488,052
</TABLE>
NOTE 5. INVESTMENTS
For the period from November 1, 1996 through April 30, 1997, purchases and
sales of investment securities, other than short-term investments, aggregated
$5,354,480 and $2,256,474 respectively. The gross unrealized appreciation for
all securities totaled $68,714 and the gross unrealized depreciation for all
securities totaled $153,022 for a net unrealized appreciation of $84,308. The
aggregate cost of securities for federal income tax purposes at April 30, 1997
was $3,650,529.
<PAGE>
AIT VISION U.S. EQUITY PORTFOLIO
Notes to Financial Statements
April 30, 1997
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 April 30, 1997, LBS Capital
Management Inc., and entities which the Adviser could be deemed to control or
have discretion over owned in aggregate more than 25% of the Fund.
During the year, the Fund placed a portion of its portfolio transactions
through Investment Technology Group (ITG), for which brokerage commissions of
$19 were paid. ITG has an investment interest in the Advisor.
<TABLE>
<CAPTION>
MAXIM Contrarian Fund
Schedule of Investments April 30, 1997 (Unaudited)
<S> <C> <C>
Common Stock - 101.3% Shares Value
Chemicals - 0.9%
Balchem Corp. 1,400 $ 13,213
-----------------
Computer Services & Software - 5.2%
3Com* 500 14,500
Cabletron Systems Inc. 1,200 41,400
Cisco Systems Inc. 400 20,700
-----------------
76,600
-----------------
Computers & Peripherals - 5.9%
Gateway 2000 Inc. 1,000 54,875
Glenayre Technology Inc. 2000 19,750
Scan Optics Inc. 2000 11,250
-----------------
85,875
-----------------
Electrical Equipment - 2.2%
York Research Corp. 4250 31,875
-----------------
Financial Services - 1.1%
National Auto Credit Inc. 2000 15,750
-----------------
Health - 1.6%
Phymatrix Corp. 2000 23,000
-----------------
Industrial Machinery & Equipment - 4.4%
Astrotech International Corp. 2000 10,875
Hirsch International Corp. Class A 2000 36,500
Misonix Inc. 2000 17,250
-----------------
64,625
-----------------
Industrial Services - 4.3%
Hanson Trust PLC 63 1,516
Kaydon Corp. 1,400 61,950
-----------------
63,466
-----------------
Insurance - 5.2%
Sun America Inc. 1,000 46,000
Symons International Inc. 2,000 29,500
-----------------
75,500
-----------------
Management & Consulting Services - 1.0%
Employee Soloutions Inc. 3,000 15,047
-----------------
Medical Services - 6.9%
Dionex Corp. 500 24,438
Medical Resources Inc. 6,000 76,500
-----------------
100,938
-----------------
Non-Precious Metals Mining - Exploration 2.4%
Adrian Resources Ltd. (Panama) (a) 10,000 15,000
Consolidated Magna Ventures Ltd. (Canada) (a) 45,500 20,181
-----------------
35,181
-----------------
Non-Precious Metals Mining - Producing - 5.1%
Manhattan Minerals Corp. 12,500 74,670
<PAGE>
-----------------
MAXIM Contrarian Fund - continued
Common Stocks - continued
Pharmaceuticals - 2.0%
AMGEN Inc. 500 $ 29,438
-----------------
Precious Metals Mining - Exploration - 27.3%
Brandon Gold Corp. 38,800 71,306
Crystallex International Corp. 50,000 137,357
Nevsun Resources (Ghana, Mali) (a) 55,400 172,404
Oliver Gold Corp. (Mali, Zimbabwe) (a) 18,600 19,294
-----------------
400,361
-----------------
Precious Metals Mining - Producing - 6.5%
Banro Resource Corp. (Zaire) (a) 16,000 53,798
Bema Gold Corp. (Chile) (a) 6,000 40,875
-----------------
94,673
-----------------
Office Equipment/Supplies - 6.8%
Office Max Inc. 8,000 99,000
-----------------
Oil & Oilfield Services - 2.5%
Arakis Energy Corp. 10,000 37,500
-----------------
Real Estate - 2.4%
Grubb & Ellis Co. 3,000 35,250
-----------------
Retail - 6.4%
Fila Holdings 500 21,624
Paul Harris Stores 1,000 12,875
Pier One Imports Inc. 3,000 59,250
-----------------
93,749
-----------------
Textiles - 1.2%
Culp Inc. 1,000 17,750
-----------------
TOTAL COMMON STOCKS (Cost $1,807,209) 1,483,461
-----------------
Money Market Securities - 4.1%
Star Treasury (Cost $60,362) 60,362 60,362
-----------------
OPTIONS - 0.4%
Short Options - (0.0%)
Gateway 2000 Inc. (June 1997) 10 (812)
-----------------
Long Options - 0.4%
S&P Index 100 (December 1997) 30 6,000
-----------------
TOTAL OPTIONS (Cost $5,959) 5,188
-----------------
TOTAL INVESTMENTS - 105.8% (Cost $1,873,530) 1,549,011
Other Assets less liabilities (5.8%) (85,613)
-----------------
TOTAL NET ASSETS - 100% 1,463,398
=================
<FN>
Legend
(a) non-income producing
(b) private placement
</FN>
</TABLE>
<PAGE>
MAXIM Contrarian Fund
Covered Call Options Written
April 30, 1997 (Unaudited) Shares
Subject
Common Stocks/Expiration Date/ Exercise Price to Call Value
Gateway 2000 Inc./June 1997/70 100 (813)
------------
Total (Cost $6,511) (813)
============
<PAGE>
<TABLE>
<CAPTION>
MAXIM Contrarian Fund April 30,1997
Statement of Assets & Liabilities (Unaudited)
<S> <C> <C>
Assets
Investment in securities, at value (cost $1,873,530) $ 1,549,011
Dividends receivable 120
Interest receivable 86
------------------
Total assets 1,549,217
Liabilities
Redemptions payable $ 81,707
Dividends payable 0
Accrued advisory fee 3,252
Accrued trustees' fees 534
Accrued distribution fees 325
-----------------
Total liabilities 85,819
------------------
Net Assets 1,463,398
==================
Net Assets consist of:
Paid in capital $ 1,917,178
Accumulated undistributed net investment income (22,627)
Accumulated undistributed net realized gain (loss) (106,634)
Net unrealized appreciation (depreciation) on investments (324,519)
------------------
Net Assets, for 195,831 shares 1,463,398
==================
Net Asset Value
Net Assets
Offering price and redemption price per share ($642,052/195,831) $ 7.47
==================
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
MAXIM Contrarian Fund
Statement of Operations for the six month period ended April 30, 1997 (Unaudited)
<S> <C> <C>
Investment Income
Dividend Income $ 1,977
Interest Income 86
------------------
Total Income 2,063
Expenses
Management fee $ 21,817
12-B1 fees 2,182
Trustees' fees 691
------------------
Total Expenses 24,690
------------------
Net Investment Income (Loss) (22,627)
------------------
Realized & Unrealized Gain (Loss)
Net realized gain (loss) on investment securities (11,511)
Net realized gain (loss) on options transactions (71,850)
Change in net unrealized appreciation (depreciation) on
investment securities (277,135) (360,496)
------------------ ------------------
Net gain (loss)
Net increase (decrease) in net assets resulting $ (383,122)
==================
from operations
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
MAXIM Contrarian Fund
Statement of Changes (Unaudited) May 1, 1996
For the six months (commencement of
ended April 30, operations) to October 31,
Increase/(Decrease) in Net Assets 1997 1996
<S> <C> <C>
Operations
Net investment income (loss) $ (22,627) (5,245)
Net realized gain (loss) on securities transactions (11,511) (3,375)
Net realized gain (loss) on options transactions (71,850) (19,899)
Change in net unrealized appreciation (depreciation) (277,135) (47,384)
-------------- --------------
Net Increase (decrease) in net assets resulting from operations (383,122) (75,903)
-------------- --------------
Distributions to shareholders:
From net investment income 0 0
-------------- --------------
Share Transactions
Net proceeds from sale of shares 673,678 1,583,605
Shares issued in reinvestment 0 0
Shares redeemed (334,860) 0
-------------- --------------
Net increase (decrease) in net assets resulting
from share transactions 338,818 1,583,605
-------------- --------------
Total increase (decrease) in net assets (44,304) 1,507,702
Net Assets
Begining of period 1,507,702 0
-------------- --------------
End of period including net investment income (loss) of
of $(5,245) and $(22,627) $ 1,463,398 1,507,702
============== ==============
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
MAXIM Contrarian Fund
Financial Highlights (Unaudited) May 2, 1996
For the six months (commencement of
Selected Per Share Data ended April 30, operations) to October 31,
1997 1996
<S> <C> <C>
Net asset value, $9.21 $10.00
-------------- -----------
begining of period
Income from investment
Operations (0.12) (0.05)
Net investment income
Net realized and (1.62) (0.74)
-------------- -----------
unrealized gain (loss) (1.74) (0.79)
-------------- -----------
Total from investment operations
Less Distributions 0.00 0.00
-------------- -----------
From net interest income
Net asset value,
end of period $7.47 $9.21
Total Return (a) (38.09)% (27.01)%
Ratios and Supplemental Data
Net assets, end of period (000) $1,463 $1,508
Ratio of expenses to
average net assets (a) 2.83% 2.89%
Ratio of net investment income to
average net assets (a) -2.59% -1.16%
Portfolio turnover rate (a) 151% 92%
Average commission rate 0.0339 0.0497
(a) Annualized
</TABLE>
<PAGE>
MAXIM CONTRARIAN FUND
NOTES TO FINANCIAL STATEMENTS
April 30, 1997
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 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.
MAXIM CONTRARIAN FUND
NOTES TO FINANCIAL STATEMENTS
April 30, 1997
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 November 1, 1996
through April 30, 1997, the Adviser has received a fee of $21,817 from the Fund.
MAXIM CONTRARIAN FUND
NOTES TO FINANCIAL STATEMENTS
April 30, 1997
NOTE 4. CAPITAL SHARE TRANSACTIONS
As of April 30, 1997 there was an unlimited number of no par value shares
of capital stock authorized for the Fund. Paid in capital at April 30, 1997 was
$1,917,178.
<TABLE>
<CAPTION>
Transactions in capital stock were as follows:
<S> <C> <C> <C> <C>
For the period from For the period
May 2, 1996 from May 2, 1996
(Commencement of (Commencement of
Operations) through Operations)
For the six month For the six month October 31, 1996 through October
period ended April period ended April 31, 1996
30, 1997 30, 1997
Shares Dollars Shares Dollars
Shares sold 72,602 $673,678 271,421 $1,583,605
Shares issued in
reinvestment of
dividends 0 0 0 0
Shares redeemed (40,484) (334,860) (0) (0)
-------- --------- --- ---
32,118 $338,818 271,421 $1,583,605
</TABLE>
NOTE 5. INVESTMENTS
For the period from November 1, 1997 through April
30, 1997, purchases and sales of investment securities, other than short-term
investments, aggregated $1,621,314 and $1,247,601, respectively. The gross
unrealized appreciation for all securities totaled $83,415 and the gross
unrealized depreciation for all securities totaled $407,934 for a net unrealized
depreciation of $324,519. The aggregate cost of securities for federal income
tax purposes at April 30, 1996 was $1,873,530. As of April 30, 1997 the Fund has
invested 36.5% of its net assets in foreign securities.
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.
<PAGE>
MAXIM CONTRARIAN FUND
NOTES TO FINANCIAL STATEMENTS
April 30, 1997
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 April 30, 1997, Cheryl
Holeski (wife of the President and controlling shareholder of Newport Investment
Advisor) owns more than 25% of the fund.
During the year, the Fund placed a portion of its portfolio transactions
through WRP Investments, Inc. (WRP), for which brokerage commissions of $1,226
were paid. An officer of the Advisor is a registered representative and branch
manager of WRP.
<PAGE>
Dear Fellow Shareholders:
Weathering the Storm
Fear historically drives the stock market and today's investors have two basic
fears: they're afraid of being in the market, for fear they will end up giving
back their recent gains and they're afraid of being out of the market, for fear
the great bull market will leave them behind. Legendary investor Warren Buffet
simply adds fuel to the fire with comments to the effect that investors run the
risk of overpaying for "virtually all stocks at these levels". Yet for those who
believe that "actions speak louder than words", it pays to examine these types
of comments further. As it turns out, Mr. Buffet, like most successful
investors, remains fully invested and has in fact been aggressively buying the
shares of what he considers to be undervalued, blue-chip companies such as
McDonalds.
Still, the prudent investor asks the question - What if I want to continue to
participate in this historic bull market yet reduce my exposure to a market
downturn? In other words, how can I best position my portfolio to weather a
storm? History tells us that value investing is the most intelligent way to
accomplish this goal. Your IMS Capital Value Fund strives to maintain a
defensive position against market corrections while still remaining fully
invested in U.S. stocks. Value investing is the process of researching and
investing in companies when they are undervalued relative to their underlying
fundamentals. As value investors, we look to invest in companies at historically
low valuations, recognizing that investors often over-react to short-term
negative events. Since we are usually buying undervalued assets, these stocks
typically don't have as far to fall in a bear market. Yet historically, value
investors have not had to sacrifice performance for lower risk. In fact, some of
the most acclaimed and prolific investors of our time (Buffet, Graham, Price,
Soros, Templeton, etc.) have adhered to a value-based investment philosophy. The
superior upside potential of this all-weather style makes it an appropriate
strategy for any market environment.
We are constantly searching out quality companies trading at historically low
valuations in terms of their fundamentals: price-to-book, price-to-earnings,
price-to-sales and price-to-cash flow. We also insist on owning good businesses
with at least some of the following characteristics: immunity to product
obsolescence, short consumer repurchase cycles, high barriers to entry,
significant global sales and recession-resistance. But we are careful not to
overpay. Great companies are not always great investments. If the fundamentals
appear historically undervalued, we insist that the same be true of the share
price. We look for companies that have already had their corrections and are
trading at a significant discount (at least 30%) to their historical highs. In
other words, we buy good companies on weakness. Dividend-paying companies are
preferred because a healthy dividend provides additional income and stability.
Owning a diversified collection of blue chip stocks with some of the
characteristics mentioned above keeps the fund in a lower risk position relative
to the market.
Company Focus
Nothing drives a point home like a good example. Waste Management, one of the
fund's largest holdings, represents a compelling value with many of the
characteristics we look for in a company. In the 1980's Waste Management, the
world's largest trash hauler, was one of this country's great growth and success
stories. The company grew and prospered by focusing on hauling trash and
becoming the biggest and the best in doing so. The stock went from $2 to $46 a
share in the ten years stretching from 1980 to 1990. Then in the late 80's and
early 90's they lost their focus. Rather than concentrating on the core business
of hauling trash, the company looked to branch out into other areas. They even
changed their name to WMX Technologies. The environmental service, chemical and
radioactive waste industries that they entered proved to be more complex and
less profitable than plain ol' trash hauling. Wall Street was unimpressed and
the stock went nowhere fast, falling from $46 in 1990 to as low as $23 in 1994.
Few companies posses as many of the characteristics we look for as Waste
Management: Immunity to product obsolescence and a long product cycle - it is
unlikely in the near future that people and businesses will find another way to
dispose of their waste. Short consumer repurchase cycle - consumers will pay
Waste Management to come and take away their trash every single week, year in
and year out. High barriers to entry - with fairly high fixed costs the disposal
of waste is becoming increasingly dominated by the biggest companies with the
most capital. Significant global sales - Waste Management is the world's largest
with close to 25% of their revenue coming from outside the United States.
Consumer growth/Recession-resistant - people need their trash hauled in good
economic times and in bad.
Being a great business is just part of the equation. We are looking to buy great
businesses for bargain basement prices. Due to the mistakes described above,
Waste Management's shares are selling at a discount to both the market and its
historical valuation levels in virtually every category. At today's price of $32
a share, nearly 35% off its all-time high, the stock is cheap relative to sales,
cash flow, book value, and earnings potential. Wall Street has about given up
hope on the company, but we haven't. They are re-focusing on what they are good
at - hauling waste. The company is in the process of selling off all assets that
do not help them achieve this goal. Management is also committed to cutting
costs and increasing margins. These actions will generate an estimated $3
billion in cash flow which will be used to grow their core business or returned
to us as shareholders in the form of increased dividends, reduced debt, or share
repurchases. The company knows it has a unique global franchise and they are
once again taking the right steps to maximize this advantage. And guess what?
The company changed its name back to Waste Management at their annual meeting on
May 9th.
Too Much of a Good Thing
Waste Management is one of just 30 companies (diversified across 21 industries)
in your fund. You probably wouldn't go out and buy 150 to 300 companies for
yourself, so why invest in the typical mutual fund that does? In fact, Don
Phillips, president of Morningstar Inc., recently told the Wall Street Journal
that ".... the vast majority of funds are grossly overdiversified. They end up
looking pretty much like the market." Many funds have become just too big for
their own good. Your fund is different. The strength of our process is in our
research and we do not believe in diluting our best ideas.
Thank you for joining us as shareholders as we continue working towards our goal
of making the IMS Capital Value Fund one of the most respected and successful
value funds in the industry.
Carl W. Marker Douglas E. Johanson, CFA
Portfolio Manager Research Analyst
<PAGE>
Fund vs. S&P 500
April 30, 1997
display the fund's valuation measures of price/sales, price/book value,
price cash flow, and price/earnings vs. the same for the S&P 500 -- same as we
did the last annual report.
<PAGE>
Below is a brief description of each of the holdings in your mutual fund.
American Power Conversion
world's leading maker of surge protection & uninterruptible power supply systems
for computers Bausch & Lomb leading maker of contact lenses, solutions,
sunglasses, hearing aids, etc. Chiquita Brands global leader in the marketing
and distribution of bananas and other fruits Cooper Tire manufactures auto and
truck tires under several names - produces various rubber products Dow Jones
publisher of the Wall Street Journal, Barron's and several local newspapers
Fleming largest U.S. wholesale food distributor (delivers food to grocery
stores) Fruit of the Loom largest U.S. producer of cotton T-shirts and underwear
for men, women and children General Instrument leading provider of equipment to
the cable and satellite television industries General Motors world's largest
auto manufacturer - owns Hughes Electronics, GMAC, etc. H & R Block world's
largest tax preparation firm - owns 80% of Compuserve (on-line service)
Hewlett-Packard leading worldwide producer of printers, fax machines,
calculators, PC's , etc. Ivax largest generic drug maker Kmart international
retailer with nearly 2,400 retail outlets Louisiana-Pacific building materials
company - strongest balance sheet in the industry Marvel comic books, trading
cards, stickers, toys, software, character licensing Motorola world's number one
manufacturer of cellular phones, pagers and two-way radios Nike global leader in
the design and marketing of high quality footwear and apparel Office Depot
largest office supply superstore chain in North America Pacific Gas & Electric
largest publicly-owned gas and electric utility in the United States RJR Nabisco
second largest food and tobacco company in the world - owns 80% of Nabisco
Foods. Rubbermaid leading maker of household plastic and rubber products - owns
Little Tykes and Graco Sensormatic leading manufacturer of security surveillance
systems, tags and sensor labels Shaw Industries largest U.S. carpet manufacturer
Singer world's largest manufacturer of sewing machines - focus on emerging
markets Sunbeam makes and markets brand name consumer products (housewares,
personal care, etc.) Toys "R" Us worldwide retailer of children's products
United Healthcare one of the nation's largest Health Maintenance Organizations
(HMO's) U.S. West Media Group provides cable and wireless communications, and
directory and information services Wal-Mart the largest and most profitable
discount retailer in the world Waste Management world's largest solid waste
collection and disposal company cwinword/anrpt497
<PAGE>
<TABLE>
<CAPTION>
IMS Capital Value Fund
Schedule of Investments April 30, 1997 (Unaudited)
<S> <C> <C>
Common Stock - 96.0% Shares Value
Apparel - 6.3%
Fruit of the Loom (Class A)(a) 12,595 453,420
-----------------
Automotive - 1.4%
General Motors Corp. 1,700 98,388
-----------------
Communications - 3.9%
U.S. West Media Group (a) 16,500 284,625
-----------------
Computers & Periphals - 5.4%
American Power Conversion (a) 9,500 182,875
Hewlett Packard Co. 4,000 210,000
-----------------
392,875
-----------------
Electronics - 8.9%
General Instrument (a) 10,000 233,750
Motorola Inc. 3,670 210,108
Sensormatic Electronics Corp. 13,500 202,500
-----------------
646,358
-----------------
Environmental - 7.7%
Waste Management Inc. 19,000 558,125
-----------------
Financial Services - 2.7%
H & R Block 6,100 196,725
-----------------
Food - 4.2%
Chiquita Brands International Inc. 21,000 301,875
-----------------
Food & Tobacco - 2.5%
RJR Nabisco Holdings Corp. 6,000 178,500
-----------------
Food Distribution - 3.6%
Fleming Companies 16,055 260,894
-----------------
Forest Products - 2.5%
Lousiana Pacific Corp. 9,800 182,525
-----------------
Healthcare - 2.0%
United Healthcare 3,000 145,875
-----------------
Healthcare Products - 6.7%
Bausch & Lomb 8,250 333,094
IVAX Corp. 19,300 145,956
-----------------
478,969
-----------------
Home Furnishings - 2.0%
Shaw Industries, Inc. 12,200 147,925
-----------------
Household Products - 11.5%
Sunbeam Corp. 10,000 317,500
Rubbermaid Inc. 21,350 512,400
<PAGE>
-----------------
IMS Capital Value Fund
-----------------
Common Stocks - continued
-----------------
829,900
-----------------
Manufacturing - 4.2%
Singer Co. 16,300 301,550
-----------------
Publishing - 5.1%
Dow Jones & Company 6,000 243,000
Marvel Entertainment (a) 60,000 127,500
-----------------
370,500
-----------------
Retail - 10.4%
Kmart Corp. (a) 12,000 163,500
Office Depot Inc. (a) 15,000 210,000
Toys R Us (a) 7,000 199,500
Walmart Stores 6,220 175,714
-----------------
748,714
-----------------
Shoe - 1.50%
Nike (Class B) 2,000 112,500
-----------------
Tire & Rubber - 1.7%
Cooper Tire & Rubber Corp. 5,650 124,300
-----------------
Utilities - 1.7%
Pacific Gas & Electric Corp. 5,000 120,000
-----------------
TOTAL COMMON STOCKS (Cost $6,685,530) $6,934,624
-----------------
Money Market Securities - 1.6% Principal Amount
Star Treasury 4.160%, 12/31/97 $114,851 $114,851
-----------------
Total Bonds & Notes (Cost $114,851)
Options - (0.4%)
Written Options
General Motors Corp. (September 1997) (4,000)
Kmart Corp. (January 1998) (24,375)
-----------------
TOTAL OPTIONS (Cost ($24,928)) ($28,375)
-----------------
TOTOL INVESTMENTS - 97.2%
Cost $6,775,453 $7,021,100
-----------------
Other Assets less liabilities - 2.8% 206,014
-----------------
TOTAL NET ASSETS - 100% $7,227,114
=================
<FN>
(a) non-income producing
</FN>
</TABLE>
IMS Capital Value Fund
Covered Call Options Written
April 30, 1997 (Unaudited) Shares
Subject
Common Stocks/Expiration Date/ Exercise Price to Call Value
General Motors Corp./Sept. 1997/60 160 (4,000)
Kmart Corp./Jan. 1997/15.00 400 (4,625)
Kmart Corp./Jan. 1997/12.50 800 (19,750)
------------
Total (Cost $24,928) (28,375)
============
<PAGE>
<TABLE>
<CAPTION>
IMS Capital Value Fund April 30,1997
Statement of Assets & Liabilities (Unaudited)
April 30, 1997
<S> <C> <C>
Assets
Investment in securities, at value (cost $6,775,453) $ 7,021,100
Subscriptions receivable 212,853
Dividends receivable 1,440
Interest receivable 672
------------------
Total assets 7,236,065
Liabilities
Accrued management fee payable 8,952
-----------------
Total liabilities 8,952
------------------
Net Assets 7,227,114
==================
Net Assets consist of:
Paid in capital $ 6,762,371
Accumulated undistributed net investment income (loss) (16,953)
Accumulated undisrtibuted net realized gain (loss) 236,049
Net unrealized appreciation (depreciation) on investments 245,647
------------------
Net Assets, for 636,031 shares 7,227,114
==================
Net Asset Value
Net Assets
Offering price and redemption price per share ($7,227,114/636,031) $ 11.36
==================
<PAGE>
</TABLE>
<TABLE>
<CAPTION>
IMS Capital Value Fund
Statement of Operations for the six month period ended April 30, 1997 (Unaudited)
<S> <C> <C>
Investment Income
Dividend Income $ 38,284
Interest Income 4,586
------------------
Total Income 42,870
Expenses
Investment advisory fee $ 32,850
Administration fee 15,035
Transfer agent fee 4,462
Fund accounting fee 4,800
Custodian fee 3,598
Audit fees 4,175
Legal fees 3,022
Registration fees 3,166
Miscellaneous 379
------------------
Total operating expenses before reimbursement 71,487
Reimbursed expenses (11,664)
------------------
Total operating expenses 59,823
------------------
Net Investment Income (Loss)
Net Investment Income (Loss) (16,953)
------------------
Realized & Unrealized Gain (Loss)
Net realized gain (loss) on investment securities 249,456
Change in net unrealized appreciation (depreciation) on
investment securities 1,241 250,697
------------------ ------------------
Net gain (loss)
Net increase (decrease) in net assets resulting $ 233,744
==================
from operations
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
IMS Capital Value Fund August 5, 1996
Statement of Changes (Unaudited) For the six months (commencement of
ended April 30, operations) to October 31,
1997 1996
<S> <C> <C>
Increase/(Decrease) in Net Assets
Operations
Net investment income (loss) $ (16,953) (1,691)
Net realized gain (loss) 249,456 (13,407)
Change in net unrealized appreciation (depreciation) 1,241 244,406
-------------- --------------
Net Increase (decrease) in net assets resulting from operations 233,744 229,308
-------------- --------------
Distributions to shareholders:
From net investment income 0 0
-------------- --------------
Share Transactions
Net proceeds from sale of shares 2,371,190 4,524,858
Shares issued in reinvestment 0 0
Shares redeemed (118,486) (13,500)
-------------- --------------
Net increase (decrease) in net assets resulting
from share transactions 2,252,704 4,511,358
-------------- --------------
Total increase (decrease) in net assets 2,486,448 4,740,666
Net Assets
Begining of period 4,740,666 0
-------------- --------------
End of period including undistributed net
investment income (loss)
$(16,953) and $(1,691)
$ 7,227,114 4,740,666
============== ==============
</TABLE>
<TABLE>
<CAPTION>
August 5, 1996
Financial Highlights (Unaudited) For the six months (commencement of
ended April 30, operations) to October 31,
Selected Per Share Data 1997 1996
<S> <C> <C>
Net asset value,
begining of period $10.76 $10.00
-------------- --------------
Income from investment
Operations
Net investment income -(0.03) (0.01)
Net realized and
unrealized gain (loss) 0.61 0.77
-------------- --------------
Total from investment operations 0.58 0.76
============== ==============
Less Distributions
From net interest income 0.00 0.00
-------------- --------------
Net asset value,
end of period $11.36 $10.76
============== ==============
Total Return (a) 5.58% 7.60%
Ratios and Supplemental Data
Net assets, end of period (000) $7,227 $4,741
Ratio of expenses to
average net assets (a) 2.06% 1.84%
Ratio of expenses to average net
assets before reimbursement (a) -0.58% 3.92%
Ratio of net investment income to
average net assets (a) -0.99% -(0.25)%
Ratio of net investment income to average
net assets before reimbursement (a) 2.46% -(2.32)%
Portfolio turnover rate (a) 42.68% 0.0356
Average commission rate 0.0535 0.0416
(a) Annualized
</TABLE>
<PAGE>
IMS CAPITAL VALUE FUND
NOTES TO FINANCIAL STATEMENTS
April 30, 1997
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.
IMS CAPITAL VALUE FUND
NOTES TO FINANCIAL STATEMENTS
April 30, 1997
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 November
1 through April 30, 1997, the Adviser has received a fee of $32,850 from the
Fund. The Adviser is voluntarily reimbursing certain Fund expenses. There is no
assurance that such reimbursement will continue in the future.
IMS CAPITAL VALUE FUND
NOTES TO FINANCIAL STATEMENTS
April 30, 1997
NOTE 4. CAPITAL SHARE TRANSACTIONS
As of April 30, 1997 there was an unlimited number of no par value shares
of capital stock authorized for the Fund. Paid in capital at April 30, 1997 was
$6,762,371.
<TABLE>
<CAPTION>
Transactions in capital stock were as follows:
<S> <C> <C> <C> <C>
For the period from For the period
August 1, 1996 from August 1,
(Commencement of 1996 (Commencement
Operations) through of Operations)
For the six month For the six month October 31, 1996 through October
period ended April period ended April 31, 1996
30, 1997 30, 1997
Shares Dollars Shares Dollars
Shares sold 205,965 $2,371,190 441,933 $4,524,858
Shares issued in
reinvestment of
dividends 0 0 0 0
Shares redeemed (10,591) (118,486) (1,276) (13,500)
-------- --------- ------- --------
195,374 2,252,704 440,657 $4,511,358
</TABLE>
NOTE 5. INVESTMENTS
For the period from November 1, 1996 through April 30, 1997, purchases and sales
of investment securities, other than short-term investments, aggregated
$3,425,599 and $1,243,457, respectively. The gross unrealized appreciation for
all securities totaled $580,757 and the gross unrealized depreciation for all
securities totaled $335,110 for a net unrealized appreciation of $245,647. The
aggregate cost of securities for federal income tax purposes at April 30, 1997
was $6,685,530.
<PAGE>
IMS CAPITAL VALUE FUND
NOTES TO FINANCIAL STATEMENTS
April 30, 1997
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.
<PAGE>
Dear Fellow Shareholders:
April 30, 1997 concluded Fountainhead Special Value Fund's first four months of
operations. Over this time Fountainhead returned -1.42% compared to a return of
- -4.93% in the Russell 2000 Index and a rise of 1.07% in the S&P 400 Midcap
Index. During the six weeks between April 30 and June 15, 1997 the fund's
performance shifted dramatically. As of June 15, the fund was up 12.5% for the
year. The improvement was due to a strong performance in many of the funds
stocks, the general increase in stock-market levels, and a narrowing of relative
performance between small/mid-cap stocks and large-cap stocks. Comparative
results since inceptions are graphically displayed below.
insert chart
The Fund's performance during the four-month period was driven primarily by our
financial holdings (American National Bancorp, First Palm Bancorp, And St. Paul
Bancorp) and special-situation issues (McDermott International and General
Nutrition). In addition, three of our healthcare stocks (Horizon Healthcare,
Healthsource, and TheraTx) entered into merger agreements with larger healthcare
organizations during the period at significant premiums (Horizon 24%,
Healthsource 29%, and TheraTx 30%). On the negative side, returns were impacted
by holdings in credit card companies, technology and telecommunications.
Although the Dow Jones Industrial Average and the S&P 500 continue to set new
all-time high records, we continue to see much potential in the small- and
mid-cap areas. These stocks have lagged their larger-cap brethren for the last
several years, and signs are now appearing in the financial markets that this
gap may be narrowing. Valuations on many small- and mid-cap companies are very
attractive, and this group is often targeted by larger companies as acquisition
targets. As many large-cap companies have seen their stock prices escalate to
lofty levels, they can more easily accumulate smaller companies which have a
unique market niche or which strategically compliment the aquirer. (This
activity was evidenced in the first four month of this year in several of our
healthcare issues, mentioned above).
We look forward to working with you as we continue to grow. While
quarter-to-quarter and annual results will vary, we believe that our Business
Valuation Approach will continue to uncover value opportunities often overlooked
by other investors. Successful investing in today's busy world takes time and
patience. We have the experience necessary to make it work for our shareholders.
Sincerely,
Roger E. King
President
<PAGE>
<PAGE>
<TABLE>
<CAPTION>
Fountainhead Special Value Fund
Schedule of Investments April 30, 1997 (Unaudited)
<S> <C> <C>
Common Stock - 99.9% Shares Value
Apparel 1.4%
Quiksilver, Inc. (a) 400 $ 8,700
------------
Banks and Bank Holding Companies - 21.0%
American National Bancorp Inc. 500 10,063
Bank Plus Inc. (a) 1,000 9,875
First Palm Beach Bancorp 900 24,750
Long Island Bancorp 800 27,200
Riggs National Corp. 500 9,250
St. Paul Bancorp 1,000 27,375
TR Financial Corp. (a) 700 25,987
------------
134,500
------------
Building & Construction - 4.4%
Owens Corning Corp. 700 28,350
------------
Communications - 7.2%
360 Communications (a) 1100 19113
AirTouch Communications (a) 350 8,925
Cellular Communications International Inc. (a) 300 7,500
Centennial Cellular Corp. Class A (a) 500 10,518
------------
46,056
------------
Computer Services & Software - 6.1%
AMDAHL Corp. (a) 500 4,281
Policy Management Systems Corp. (a) 800 34,800
------------
39,081
------------
Drugs - 5.6%
Watson Phamaceuticals (a) 1000 35,750
------------
Financial Services - 21.1%
Advanta Corp. Class B 800 17,800
American Business Financial Services 1,000 18,750
Credit Management Solutions, Inc. (a) 800 7,200
DVI Inc. (a) 700 8,137
Eaton Vance Corp. 600 26,550
National Auto Credit (a) 700 5,513
Ocwen Financial Corp. (a) 1,000 31,500
Ugly Duckling Corp. (a) 1,400 19,775
------------
135,225
------------
Healthcare & Healthcare Services - 10.2%
Healthsource Inc. (a) 900 18,900
Mariner Health (a) 1,000 8,750
MaxiCare Health Plans Inc. (a) 1,000 23,250
Mid-Atlantic Medical Services Inc. (a) 500 5,938
Sun Healthcare Group (a) 600 8,475
------------
65,313
------------
Diversified Industrial - 1.5%
McDermott International, Inc. 500 9,250
------------
<PAGE>
Fountainhead Special Value Fund - continued
Common Stocks - continued
Shares Value
Media & Leisure - 11.6%
Comcast United Kingdom Cable/ADR (a) 2,100 $ 23,887
Media General Class A 300 8,850
US WEST Media Group, Inc. 1,200 20,700
Young Broadcasting Inc. (a) 800 21,201
------------
74,638
------------
Oil & Gas Services- 1.5%
Mitcham Industries (a) 1,500 9,938
------------
Retail - 1.6%
General Nutrition Company (a) 500 10,750
------------
Thrifts, Savings & Loans - 6.7%
Coast Savings (a) 500 20,125
Imperial Thrift & Loan Association (a) 1,600 23,000
------------
43,125
------------
TOTAL COMMON STOCKS (Cost $682,416) 640,676
------------
Money Market Securities - 0.1%
Star Treasury, 4.92%, 12/31/97 (Cost $536) 536
------------
TOTAL INVESTMENTS (Cost $682,951) 641,212
Other Assets less liabilities (160)
------------
Total Net Assets $ 641,052
============
<FN>
Legend
(a) non-income producing
</FN>
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Fountainhead Special Value Fund April 30,1997
Statement of Assets & Liabilities (Unaudited)
<S> <C> <C>
Assets
Investment in securities, at value (cost $682,951) $ 641,212
Dividends receivable 286
Interest receivable 44
------------------
Total assets 641,542
Liabilities
Accrued investment advisory fee payable 343
Other payables and accrued expenses $ 146
-----------------
Total liabilities 490
------------------
Net Assets $ 641,052
==================
Net Assets consist of:
Paid in capital $ 678,353
Accumulated undistributed net investment income 6
Accumulated undisrtibuted net realized gain (loss) 4,433
Net unrealized appreciation (depreciation) on investments (41,740)
------------------
Net Assets, for 65,022 shares $ 641,052
==================
Net Asset Value
Net Assets
Offering price and redemption price per share ($641,530/65,022) $ 9.86
==================
</TABLE>
<PAGE>
<PAGE>
<TABLE>
<CAPTION>
Fountainhead Special Value Fund
Statement of Operations for the period December 31, 1996 (Commencement of Operations)
to April 30, 1997
<S> <C> <C>
Investment Income
Dividend Income $ 664
Interest Income 588
------------------
Total Income 1,251
Expenses
Investment advisory fee $ 767
Trustees' fees 478
------------------
Total Operating Expenses 1,245
------------------
Net Investment Income (Loss) 6
------------------
Realized & Unrealized Gain (Loss)
Net realized gain (loss) on investment securities 4,433
Change in net unrealized appreciation (depreciation) on
investment securities (41,740) (37,307)
------------------ ------------------
Net gain (loss)
Net increase (decrease) in net assets resulting $ (37,301)
==================
from operations
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Fountainhead Special Value Fund
Statement of Changes for the period December 31, 1996 (Commencement of
Operations) to April 30, 1997 (Unaudited)
<S> <C>
Increase/(Decrease) in Net Assets
Operations
Net investment income (loss) $ 6
Net realized gain (loss) 4,433
Change in net unrealized appreciation (depreciation) (41,740)
--------------
Net Increase (decrease) in net assets resulting from operations (37,301)
--------------
Distributions to shareholders:
From net investment income 0
--------------
Share Transactions
Net proceeds from sale of shares 685,660
Shares issued in reinvestment 0
Shares redeemed (7,307)
--------------
Net increase (decrease) in net assets resulting
from share transactions 678,353
--------------
Total increase (decrease) in net assets 641,052
Net Assets
Begining of period $ -
--------------
End of period, including undistributed net investment income of $6 $ 641,052
==============
</TABLE>
<PAGE>
Fountainhead Special Value Fund
Financial Highlights for the period December 31, 1996 (Commencement of
Operations) to April 30, 1997 (Unaudited)
Selected Per Share Data
Net asset value,
begining of period $10.00
-----------
Income from investment
Operations
Net investment income 0.01
Net realized and
unrealized gain (loss) (0.14)
-----------
Total from investment operations (0.13)
-----------
Less Distributions
From net interest income 0.00
-----------
Net asset value,
end of period $9.86
===========
Total Return (a) (3.98)%
Ratios and Supplemental Data
Net assets, end of period (000) $641
Ratio of expenses to
average net assets (b) 0.83%
Ratio of net investment income to
average net assets (b) 0.00%
Portfolio turnover rate 429.00%
Average commissions paid 0.02
(a) Annualized
(b) During the period December 31, 1996 to March 31, 1996 the advisor agreed to
limit the funds expenses to .75% of net assets, without this limitation the
funds expense ratio and interest income ratio would have been 1.00% and
(.01)%
<PAGE>
FOUNTAINHEAD SPECIAL VALUE FUND
NOTES TO FINANCIAL STATEMENTS
April 30, 1997
1. ORGANIZATION
The Fountainhead Special Value Fund. (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 31, 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>
FOUNTAINHEAD SPECIAL VALUE FUND
NOTES TO FINANCIAL STATEMENTS
April 30, 1997
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 Jenswold, King & Associates Inc. (the "Adviser") to manage
the Fund's investments. Roger King, 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
1.43% of the average daily net assets of the Fund. For the period from December
31, 1996 through April 30, 1997, the Adviser has received a fee of $767 from the
Fund.
<PAGE>
FOUNTAINHEAD SPECIAL VALUE FUND
NOTES TO FINANCIAL STATEMENTS
April 30, 1997
NOTE 4. CAPITAL SHARE TRANSACTIONS
As of April 30, 1997 there was an unlimited number of no par value shares of
capital stock authorized for the Fund. Paid in capital at April 30, 1997 was
$678,353.
Transactions in capital stock were as follows:
For the period from
December 30, 1996 (Commencement of
Operations) through April 30, 1997
Shares Amount
--------- ----------
Shares sold 65,722 $685,660
Shares issued in reinvestment
of dividends 0 0
Shares redeemed (700) (7,307)
----------- --------------
Net increase 65,022 $678,353
====== ========
NOTE 5. INVESTMENTS
For the period from December 31, 1996 (commencement of operations) through April
30, 1997, purchases and sales of investment securities, other than short-term
investments, aggregated $747,450 and $166,064, respectively. The gross
unrealized appreciation for all securities totaled $22,511 and the gross
unrealized depreciation for all securities totaled $64,251 for a net unrealized
depreciation of $41,740. The aggregate cost of securities for federal income tax
purposes at April 30, 1997 was $682,951.
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 April 30, 1997, Roger E.
King (President of the Advisor) owns more than 25% of the fund.
<PAGE>
<TABLE> <S> <C>
<ARTICLE> 6
<CIK> 0001000579
<NAME> AMERIPRIME FUNDS
<SERIES>
<NAME> AIT VISION U. S. EQUITY PORTFOLIO
<NUMBER> 3
<MULTIPLIER> 1
<CURRENCY> U.S. DOLLARS
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> OCT-31-1997
<PERIOD-START> DEC-31-1996
<PERIOD-END> APR-30-1997
<EXCHANGE-RATE> 1
<INVESTMENTS-AT-COST> 3,650,529
<INVESTMENTS-AT-VALUE> 3,719,243
<RECEIVABLES> 78,391
<ASSETS-OTHER> 0
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 3,797,243
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 78,755
<TOTAL-LIABILITIES> 78,755
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 3,725,810
<SHARES-COMMON-STOCK> 323,716
<SHARES-COMMON-PRIOR> 49,643
<ACCUMULATED-NII-CURRENT> 4,259
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> (79,904)
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 68,714
<NET-ASSETS> 3,718,879
<DIVIDEND-INCOME> 9,114
<INTEREST-INCOME> 159
<OTHER-INCOME> 0
<EXPENSES-NET> 5,013
<NET-INVESTMENT-INCOME> 4,259
<REALIZED-GAINS-CURRENT> (81,056)
<APPREC-INCREASE-CURRENT> (41,740)
<NET-CHANGE-FROM-OPS> 34,579
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> (81,686)
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 268,461
<NUMBER-OF-SHARES-REDEEMED> 1,648
<SHARES-REINVESTED> 0
<NET-CHANGE-IN-ASSETS> 3,091,720
<ACCUMULATED-NII-PRIOR> (2,866)
<ACCUMULATED-GAINS-PRIOR> (82,838)
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 5,013
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 5,889
<AVERAGE-NET-ASSETS> 1,472,591
<PER-SHARE-NAV-BEGIN> 12.62
<PER-SHARE-NII> 0.03
<PER-SHARE-GAIN-APPREC> (0.44)
<PER-SHARE-DIVIDEND> 0
<PER-SHARE-DISTRIBUTIONS> 1.60
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 11.49
<EXPENSE-RATIO> 0.69
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<CIK> 0001000579
<NAME> AMERIPRIME FUNDS
<SERIES>
<NAME> CARL DOMINO EQUITY INCOME FUND
<NUMBER> 1
<MULTIPLIER> 1
<CURRENCY> U.S. DOLLARS
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> OCT-31-1997
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