THE JUMPER STRATEGIC RESERVE FUND
PROSPECTUS_____________, 1997
One Union Square
Suite 505
Chattanooga, TN 37402
For Information, Shareholder Services and Requests:
(516) 385-9580
The Jumper Strategic Reserve Fund ("Fund") seeks to outperform money market
funds without taking significant additional risk. The Fund 's ability to achieve
its investment objective depends upon its Adviser's ability to manage a
portfolio consisting primarily of money market instruments and underlying funds
commonly referred to as "hedge funds". The underlying funds are not subject to
the same regulatory oversight and investment restrictions that mutual funds are.
The Fund is not a money market fund and its net asset value per share will
fluctuate.
The Jumper Strategic Reserve Fund is "no-load," which means there are no sales
charges or commissions. In addition, there are no 12b-1 fees, distribution
expenses or deferred sales charges which are borne by the shareholders. The Fund
is a separate series of AmeriPrime Funds, an open-end management investment
company, and is distributed by AmeriPrime Financial Securities, Inc.
This Prospectus provides the information a prospective investor ought
to know before investing and should be retained for future reference. A
Statement of Additional Information has been filed with the Securities and
Exchange Commission dated ___________, 1997, which is incorporated herein by
reference and can be obtained without charge by calling the Fund at the phone
number listed above.
ASA02DED-01280998-1
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THESE SECURITIES HAVE NOT BEEN APPROVED OR DISAPPROVED BY THE SECURITIES AND
EXCHANGE COMMISSION OR ANY STATE SECURITIES COMMISSION NOR HAS THE SECURITIES
AND EXCHANGE COMMISSION OR ANY STATE SECURITIES COMMISSION PASSED UPON THE
ACCURACY OR ADEQUACY OF THIS PROSPECTUS. ANY REPRESENTATION TO THE CONTRARY IS A
CRIMINAL OFFENSE.
SUMMARY OF FUND EXPENSES
The tables below are provided to assist an investor in understanding
the direct and indirect expenses that an investor may incur as a shareholder in
the Fund. The expense information is based on estimated amounts for the current
fiscal year. The expenses are expressed as a percentage of average net assets.
The Example should not be considered a representation of future Fund performance
or
expenses, both of which may vary.
Shareholders should be aware that the Fund is a no-load fund and,
accordingly, a shareholder does not pay any sales charge or commission upon
purchase or redemption of shares of the Fund. Unlike most other mutual funds,
the Fund does not pay directly for transfer agency, pricing, custodial, auditing
or legal services, nor does it pay directly any general administrative or other
significant operating expenses. The Advisor pays all of the expenses of the Fund
except brokerage, taxes, interest, fees and expenses of non-interested person
trustees and extraordinary expenses.
Shareholder Transaction Expenses
Sales Load Imposed on Purchases None
Sales Load Imposed on Reinvested
Dividends None
Deferred Sales Load None
Redemption Fees None
Exchange Fees None
Annual Fund Operating Expenses (as a percentage of average net assets)1
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Management Fees 0.75%
12b-1 Charges None
Other Expenses3 0.00%
Total Fund Operating Expenses 0.75%
1 The Fund's total operating expenses are equal to the
management fee paid to the Advisor because the Advisor pays all of the Fund's
operating expenses (except as described in footnote 2).
2 The Fund estimates that other expenses (fees and expenses of the trustees who
are not "interested persons" as defined in the Investment Company Act) will be
.00032 of 1% of average net assets for the first fiscal year.
The tables above are provided to assist an investor in understanding the direct
and indirect expenses that an investor may incur as a shareholder in the Fund.
Example
You would pay the following expenses on a $1,000 investment, assuming (1) 5%
annual return and (2) redemption at the end of each time period:
1 year ...........................................$ 8
3 years ..........................................$24
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THE FUND
The Jumper Strategic Reserve Fund (the "Fund") was organized as a
series of AmeriPrime Funds, an Ohio business trust (the "Trust"), on
___________, 1997, and commenced operations on ___________, 1997. This
prospectus offers shares of the Fund and each share represents an undivided,
proportionate interest in the Fund. The investment advisor to the Fund is the
Jumper Group, Inc. (the "Advisor").
INVESTMENT OBJECTIVE
The Fund seeks to outperform money market funds without significant
additional risk. The Fund is not a money market fund and its net asset value per
share will fluctuate. Of course, there can be no assurance that the Fund will
achieve its investment objective.
The Fund's investment strategies and portfolio investments will differ
from those of most other mutual funds. The Adviser seeks rigorously to identify
favorable investment opportunities in underlying funds that other investors may
not have identified and may be unable to invest in..
During normal market conditions the Fund invests at least 65% of its
total assets in domestic, investment grade, short-term fixed income securities
and underlying funds pursuing market neutral investment strategies (or which
when combined in a portfolio the Adviser believes will result in market
neutrality).
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INVESTMENT STRATEGY
The Fund's investment portfolio is built around a core of selected underlying
funds selected by the Advisor based upon their ability to perform well in any
market environment; including rising or falling stock markets and rising or
falling interest rates. Underlying funds selected as core investments may seek
to achieve market neutrality through the use of strategic transactions,
including short selling, futures contracts, and options. The Fund may also
invest in underlying funds which do not directly pursue a market neutral
strategy, but which may contribute to the Fund's overall market neutrality when
added to the Fund's existing portfolio. Due to legal limitations, product
availability, and the need to maintain adequate liquidity, the Fund may be
limited in the amount of its assets which it may invest in suitable underlying
funds.
After establishing a core of selected underlying funds, the Fund will
invest the remainder of its assets in short-term (maturing or having coupons
which reset in three years or less) investment grade fixed income securities
including, but not limited to, securities issued by the U.S. Government or its
agencies, commercial paper, certificates of deposit, floating rate securities,
asset-backed securities, and repurchase agreements. The Fund will only invest in
short-term fixed income securities earning one of the four highest ratings by
Moody's Investor's Services (Aaa, Aa, A, Baa) or by Standard & Poor's
Corporation (AAA, AA, A, BBB), or if unrated by either of these services, which
the Adviser believes to be of comparable credit quality. Investments in the
fourth credit category may have speculative characteristics and, therefore, may
involve higher risks. The Fund may invest up to 5% of total assets in a
short-term fixed income securities which are of less than investment grade or
which mature (or have coupons which reset) in more than three years. Such
securities are subject to greater risks as described below in this prospectus.
The Fund may leverage its portfolio and engage in strategic
transactions using derivative securities designed to preserve principal, hedge
market risks, or increase investment returns.
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Market Neutral Investing. The philosophy of market neutral investing is
to achieve consistent real returns which are indifferent to stock and bond
market direction, usually by simultaneously establishing equal dollar weightings
in long and short positions. Managers attempt to purchase a portfolio of
undervalued securities and short sell a portfolio of overvalued securities with
similar investment characteristics. Factors considered when balancing a market
neutral portfolio include market sectors and market capitalization of equity
securities, and cashflow, credit quality, and duration of fixed income
securities. Market neutral strategies may involve purchasing and selling call
and put options on either an individual security or an index. In some cases,
futures and options on futures may be used to effect the desired risk/reward
ratio. Market neutral investing does not depend upon any particular market
direction or favorable general economic conditions and thus may be profitable
during all economic cycles, including periods of economic uncertainty and
declining financial markets.
The success of a market neutral investment strategy depends upon
correctly assessing the future course of a relationship between the price
movement of securities purchased long and those sold short. There is no
assurance that either the Advisor, or the underlying funds in which the Fund
invests will be able to do so. While the Fund will attempt to remain market
neutral, a substantial risk remains, that such techniques will not always be
possible to implement, and when possible, will not always be effective in
limiting losses. There can be no assurance the Fund will be able to outperform
money market funds or that the Fund will avoid significant losses.
Underlying funds. The Fund may invest in domestic and foreign pooled
investment companies which invest principally in domestic fixed income and
equity securities. Underlying funds are sometimes referred to as "hedge funds"
or "offshore funds". Underlying funds are usually structured to avoid the
regulatory review which mutual funds are subject to. The Fund will not invest in
underlying funds which invest primarily in commodities, foreign securities, or
currencies. While most underlying funds selected by the Advisor are expected to
pursue market neutral investment strategies, the Fund may invest in other
underlying
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funds which do not pursue market neutral investment strategies which may
contribute to the Fund's overall market neutrality when added to the Fund's
existing portfolio. Underlying funds are prohibited from publicly advertising in
the United States and may be purchased directly only by wealthy individuals and
institutional investors. Underlying funds typically impose restrictions on when
an investor may redeem its interests and no organized public market exists to
dispose of the interests. Like other illiquid securities, investments in
underlying funds are more difficult to value than are traditional stocks and
bonds.
Underlying funds are not subject to many of the investment limitations
imposed by federal law on mutual funds and thus may engage in a broader array of
investment strategies. These investment strategies may include, but are not
limited to, leveraging, lack of diversification, extensive use of derivative
securities, investments in foreign markets, and rapid trading of portfolio
securities. This greater flexibility increases both the potential returns and
risks of investments in underlying funds. The Advisor will select underlying
funds based upon its assessment of the investment strategies pursued by those
funds. However, there is no assurance that the funds selected will perform up to
the Advisor's expectations.
Underlying funds often pay their advisers an advisory fee which is
based upon the fund's performance. The adviser is rewarded for superior
performance by receiving higher fees. These fees may be substantially higher
than those typically earned by mutual fund advisers. The return which the Fund
earns on its investment in underlying funds will be reduced by fees which the
underlying funds pay to their advisers. To the extent that the Fund invests its
assets in underlying funds, Fund shareholders will be paying an additional layer
of advisory fees.
Most domestic underlying funds are organized as limited partnerships
which issue both limited and general partnership interests. Many foreign
underlying funds, and some domestic underlying funds are organized as business
trusts, corporations, or other legal entities. When investing in underlying
funds, the
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Fund only purchases the limited interest of a limited partnership (or the
equivalent interest in a business trust or other entity), which provides some
protection in the event the particular underlying fund experiences financial
difficulties.
Underlying funds typically impose restrictions on when an investor may
redeem its interests and no organized public market exists to dispose of the
interests. As a result investments in underlying funds are usually illiquid. The
Fund limits its total investments in all illiquid securities, including
underlying funds, to no more than 15% of its net assets. The Fund may negotiate
redemption privileges with underlying funds which improve their liquidity.
Subject to liquidity requirements, the Fund could invest up to 100% of its
assets in underlying funds if it did not purchase more than 3% of the total
market value of any single underlying fund. If, however, the Fund desires to
make a more substantial investment in a smaller underlying fund, then,
immediately after the purchase of an interest in a smaller underlying fund the
Fund will not:
(i) own more than 3% of the total outstanding voting securities of the
underlying fund (the Fund typically purchases limited partnership interests,
which do no have voting rights):
(ii) invest more than 5% of its total assets in a single underlying
fund; or
(iii) invest more than 10% of its total assets in all underlying funds
combined .
In addition, the Fund is subject to the portfolio diversification
requirements described later in this prospectus. Despite the relatively small
investment in underlying funds, the Advisor expects that they will have a
disproportionate impact on the Fund's investment performance due to the highly
leveraged nature of underlying funds' investment strategies. The investment
results earned by the Fund will depend in a large degree upon the Advisor's
ability to select appropriate underlying funds.
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Long-Term Fixed Income Securities and Equity Securities. While the Fund
will not invest directly in long-term fixed income or equity securities, the
underlying funds in which the Fund invests will own these securities and the
Fund will be exposed to market risk. Investment in fixed income and equity
securities are subject to inherent market risks beyond the control of the
Adviser or the underlying funds. As a result, the return and net asset value of
the Fund will fluctuate.
The underlying funds may invest in an unlimited array of domestic
fixed income securities including U.S. Government and agency bonds, investment
grade and non-investment grade corporate bonds, asset-backed securities, and
lower rated fixed income securities ("Junk Bonds"). Fixed income securities,
including both investment grade and high yield bonds, are subject to price
fluctuations based on changes in the level of interest rates, which will
generally result in these securities changing in price in the opposite
direction. That is, these securities will experience appreciation when interest
rates decline and will depreciate when interest rates rise. In addition,
specific fixed income securities are subject to many other risks, including
pre-payment risks for asset-backed securities, call risk for callable bonds,
credit downgrades for corporate bonds, and default risk for Junk Bonds.
The underlying funds may invest in an unlimited array of domestic
equity securities including common stock, preferred stock, convertible stocks
and bonds, and warrants to purchase equity securities. Equity securities may
fluctuate in value due to earnings, economic conditions, quality ratings,
interest rates and other factors. For example, an underlying fund may invest in
small companies. Small companies present special risks, including difficulties
in obtaining the capital necessary to continue in operation and may become
insolvent, which may result in a complete loss of the underlying fund's
investment in such companies. Or an underlying fund may purchase equity
securities in private placements, making it difficult to dispose of shares when
it may otherwise be advisable.
Foreign Securities. The Fund invests in underlying funds which invest
principally in domestic fixed income and equity securities. The underlying funds
<PAGE>
may invest a portion of their assets in foreign securities. Investments in
foreign securities, whether in emerging or more developed countries, are subject
to risks and uncertainties not typically associated with investments in domestic
securities. These risks and uncertainties include currency exchange rates and
exchange control regulations, less publicly available information, different
accounting and reporting standards, less liquid markets and more volatile
markets, higher brokerage commissions and other fees, the possibility of
nationalization or expropriation, confiscatory taxation, political instability
and less protection provided by the judicial system.
Repurchase Agreements. Repurchase Agreements are agreements by which a
person obtains a security and simultaneously commits to return the security to
the seller at an agreed upon price (including principal and interest) on an
agreed upon date within a number of days from the date of purchase. The
custodian or its agent will hold the security as collateral for the repurchase
agreement. Collateral must be maintained at a value at least equal to 102% of
the purchase price. The Fund bears a risk of loss in the event the other party
defaults on its obligations and the Fund is delayed or prevented from its right
to dispose of the collateral securities or if the Fund realizes a loss on the
sale of the collateral securities. The Fund will enter into repurchase
agreements on behalf of the Fund only with financial institutions deemed to
present minimal risk of bankruptcy during the term of the agreement based on
guidelines established and periodically reviewed by the Advisor.
Strategic Investments. Both the Fund and the underlying funds may, but
are not required to, use various other investment strategies as described below.
These strategies are generally accepted as modern portfolio management
techniques and are regularly used by many mutual funds and other institutional
investors. Techniques and instruments may change over time as new instruments
and strategies are developed or regulatory changes occur. While pursuing these
investment strategies, the Fund may purchase and sell exchange-listed and
over-the-counter put and call options on securities, equity and fixed-income
indexes and
<PAGE>
other financial instruments; and financial futures contracts and options
thereon. In addition, the Fund may borrow securities and sell them short, hoping
to repurchase them in the future at a profit. Collectively, all the above, and
other transactions involving derivative instruments, are called strategic
transactions.
The Fund, and the underlying funds in which the Fund invests a portion
of its assets, may engage in strategic transactions for hedging, risk
management, or portfolio management purposes, or in an attempt to increase
investment returns. Strategic transactions may be used to attempt to protect
against possible changes in the market value of securities held in, or to be
purchased for, the portfolio. Such changes may result from securities markets
fluctuations. Strategic transactions may be used to attempt to protect
unrealized gains or prevent losses in the value of its portfolio securities, or
to establish a position using strategic transactions as a temporary substitute
for purchasing or selling particular securities. When used in an attempt to
increase investment returns, strategic transactions may result in leveraging of
the Fund's exposure to market fluctuations, increasing the likelihood that the
Fund my incur a substantial loss on the transaction. Short-selling exposes the
seller to unlimited risk with respect to the security sold short due to the lack
of an upper limit on the price to which a security can rise. The ability of the
Fund to use these strategic transactions successfully will depend upon the
Advisor's ability to predict pertinent market movements, which cannot be
assured. Engaging in strategic transactions will increase transaction expenses
and may result in a loss that exceeds the principal invested in the transaction.
The Fund will comply with applicable regulatory requirements when it engages in
strategic transactions.
OTHER INVESTMENT PRACTICES AND LIMITATIONS
Temporary Defensive Investments. For temporary defensive purposes
during periods that, in the Advisor's opinion, present the Fund with adverse
changes in the economic, political or securities markets, the Fund may seek to
protect the capital value of its assets by temporarily investing up to 100% of
its assets in short-term debt instruments including treasury bills, investment
grade commercial paper, certificates of deposit, or repurchase agreements.
<PAGE>
Portfolio Diversification. As a fundamental policy, which cannot be
changed without a vote of shareholders, with respect to 75% of its total assets,
the Fund will not purchase the securities of any one issuer (other than
obligations issued or guaranteed by the United States government or any of its
agencies or instrumentalities) if, as a result of the purchase, (a) more than 5%
of the total assets of the Fund (taken at current value) would be invested in
the securities of that issuer, or (b) the Fund would hold more than 10% of the
outstanding voting securities of the issuer. The Fund is not required to "look
through" its portfolio of underlying funds to their underlying portfolio
securities when determining portfolio diversification.
Portfolio Turnover. The length of time the Fund has held a particular
security is not generally a consideration in investment decisions. It is the
policy of the Fund to effect portfolio transactions without regard to its
holding period if, in the judgment of the Advisor, such transactions are
advisable. Portfolio turnover generally involves some expense, including
brokerage commissions, dealer mark-ups or other transaction costs on the sale of
securities and reinvestment in other securities. Such sales may result in
realization of taxable capital gains. The portfolio turnover of the Fund is
expected to be less than 100%.
Borrowing and Leverage. As a fundamental policy that cannot be changed
without a vote by shareholders, the Fund may borrow up to 33 1/3% of its total
assets (reduced by the amount of all liabilities and indebtedness other than
such borrowings) when deemed desirable or appropriate by the Advisor. Such
borrowing may be used either to meet redemption requests or to purchase
additional portfolio securities, thereby leveraging the Fund's investments. At
such times, the Fund' investment portfolio may appreciate or depreciate more
rapidly than an unleveraged portfolio. The Fund will pay interest upon the money
it borrows which will increase its operating expenses. Moreover, the Fund may be
forced to sell portfolio securities at unfavorable prices in order to repay the
borrowed money.
<PAGE>
SHARE PRICE CALCULATION
The value of an individual share in the Fund (the net asset value) is
calculated by dividing the total value of the Fund's investments and other
assets (including accrued income), less any liabilities (including estimated
accrued expenses), by the number of shares outstanding, rounded to the nearest
cent. Net asset value per share is determined as of the close of the New York
Stock Exchange (usually 4:00 p.m., Eastern time) on each day that the exchange
is open for business, and on any other day on which there is sufficient trading
in the Fund's securities to materially affect the net asset value. The net asset
value per share of the Fund will fluctuate.
The Funds' portfolio of securities are valued primarily on market
quotations, where available. Securities for which current market quotations are
not readily available, including the current market value of underlying funds,
are valued at fair value as determined in good faith by procedures approved by
the Funds' board of trustees. Short-term investments maturing in sixty days or
less are valued at amortized cost, which approximates fair market value.
HOW TO INVEST IN THE FUND
Shares of the Fund are sold on a continuous basis, and you may invest
any amount you choose, as often as you wish, subject to a minimum initial
investment of $5,000 ($2,000 for IRAs and other retirement plans) and minimum
subsequent investments of $100. Investors choosing to purchase or redeem their
shares through a broker/dealer or other institution may be charged a fee by that
institution. Investors choosing to purchase or redeem shares directly from the
Fund will not incur charges on purchases or redemptions. To the extent
investments of individual investors are aggregated into an omnibus account
established by an investment adviser, broker or other intermediary, the account
minimums apply to the omnibus account, not to the account of the individual
investor.
<PAGE>
Initial Purchase
By Mail - You may purchase shares of the Fund by completing and signing
the investment application form which accompanies this Prospectus and mailing
it, in proper form, together with a check (subject to the above minimum amounts)
made payable to The Jumper Strategic Reserve Fund, and sent to the address
listed below.
U.S. Mail: Overnight:
The Jumper Strategic Reserve Fund The Jumper Strategic Reserve Fund
c/o American Data Services, Inc. c/o American Data Services,Inc.
P.O. Box 5536 Hauppauge Corporate Center
Hauppauge, New York 11788-0132 150 Motor Parkway
Hauppauge, New York 11760
Your purchase of shares of the Fund will be effected at the next share price
calculated after receipt of your investment.
By Wire - You may also purchase shares of the Fund by wiring federal
funds from your bank, which may charge you a fee for doing so. If money is to be
wired, you must call the Transfer Agent at 800-___-____ to set up your account
and obtain an account number. You should be prepared at that time to provide the
information on the application. Then, you should provide your bank with the
following information for purposes of wiring your investment:
Star Bank, N.A. Cinti/Trust
ABA #0420-0001-3
Attn: The Jumper Strategic Reserve Fund
D.D.A. # __________________
Account Name _________________ (write in shareholder
name)
For the Account # ______________ (write in account
<PAGE>
number)
You are required to mail a signed application to the Custodian at the
above address in order to complete your initial wire purchase. Wire orders will
be accepted only on a day on which the Fund, Custodian and Transfer Agent are
open for business. A wire purchase will not be considered made until the wired
money is received and the purchase is accepted by the Fund. Any delays which may
occur in wiring money, including delays which may occur in processing by the
banks, are not the responsibility of the Fund or the Transfer Agent. Shares may
be purchased through a broker dealer or other financial institution authorized
by the Distributor to hold shares in an omnibus account. Investors may be
charged a fee by the broker dealer or other financial institution for this
service. There is presently no fee for the receipt of wired funds, but the right
to charge shareholders for this service is reserved by the Fund.
Additional Investments
You may purchase additional shares of the Fund at any time (subject to
minimum investment requirements) by mail, wire, or automatic investment. Each
additional mail purchase request must contain your name, the name of your
account(s), your account number(s), and the name of the Fund. Checks should be
made payable to The Jumper Strategic Reserve Fund and should be sent to the
Custodian's address. A bank wire should be sent as outlined above.
Tax Sheltered Retirement Plans
Since the Fund is oriented to longer term investments, shares of the
Fund may be an appropriate investment medium for tax sheltered retirement plans,
including: individual retirement plans (IRAs); simplified employee pensions
(SEPs); 401(k) plans; qualified corporate pension and profit sharing plans (for
employees); tax deferred investment plans (for employees of public school
systems and certain types of charitable organizations); and other qualified
retirement plans. You should contact the Transfer Agent for the procedure to
open an IRA or SEP plan, as well as more specific information regarding these
<PAGE>
retirement plan options. Consultation with an attorney or tax adviser regarding
these plans is advisable. Custodial fees for an IRA will be paid by the
shareholder by redemption of sufficient shares of the Fund from the IRA unless
the fees are paid directly to the IRA custodian. You can obtain information
about the IRA custodial fees from the Transfer Agent.
Other Purchase Information
Dividends begin to accrue after you become a shareholder. The Fund does
not issue share certificates. All shares are held in non-certificate form
registered on the books of the Fund and the Fund's Transfer Agent for the
account of the shareholder. The rights to limit the amount of purchases and to
refuse to sell to any person are reserved by the Fund. If your check or wire
does not clear, you will be responsible for any loss incurred by the Fund. If
you are already a shareholder, the Fund can redeem shares from any identically
registered account in the Fund as reimbursement for any loss incurred. You may
be prohibited or restricted from making future purchases in the Fund.
HOW TO REDEEM SHARES
All redemptions will be made at the net asset value determined after
the redemption request has been received by the Transfer Agent in proper order.
Shareholders may receive redemption payments in the form of a check or federal
wire transfer. The proceeds of the redemption may be more or less than the
purchase price of your shares, depending on the market value of the Fund's
securities at the time of your redemption. Presently there is no charge for wire
redemptions; however, the Fund reserves the right to charge for this service.
Any charges for wire redemptions will be deducted from the shareholder's Fund
account by redemption of shares. Investors choosing to purchase or redeem their
shares through a securities dealer may be charged a fee by that institution.
<PAGE>
By Mail - You may redeem any part of your account in the Fund at no
charge by mail. Your request should be addressed to:
The Jumper Strategic Reserve Fund
c/o American Data Services, Inc.
P.O. Box 5536
Hauppauge, New York 11788-0132
"Proper order" means your request for a redemption must include your
letter of instruction, including the Fund name, account number, account name(s),
the address and the dollar amount or number of shares you wish to redeem. This
request must be signed by all registered share owner(s) in the exact name(s) and
any special capacity in which they are registered. For all redemptions, the Fund
requires that signatures be guaranteed by a bank or member firm of a national
securities exchange. Signature guarantees are for the protection of
shareholders. At the discretion of the Fund or American Data Services, Inc., a
shareholder, prior to redemption, may be required to furnish additional legal
documents to insure proper authorization.
By Telephone - You may redeem any part of your account in the Fund by
calling the Transfer Agent at (516) 385-9580. You must first complete the
Optional Telephone Redemption and Exchange section of the investment application
to institute this option. The Fund, the Transfer Agent and the Custodian are not
liable for following redemption or exchange instructions communicated by
telephone that they reasonably believe to be genuine. However, if they do not
employ reasonable procedures to confirm that telephone instructions are genuine,
they may be liable for any losses due to unauthorized or fraudulent
instructions. Procedures employed may include recording telephone instructions
and requiring a form of personal identification from the caller.
The telephone redemption and exchange procedures may be terminated
at any time by the Fund or the Transfer Agent. During periods of extreme
<PAGE>
market activity it is possible that shareholders may encounter some difficulty
in telephoning the Fund, although neither the Fund nor the Transfer Agent has
ever experienced difficulties in receiving and in a timely fashion responding to
telephone requests for redemptions or exchanges. If you are unable to reach the
Fund by telephone, you may request a redemption or exchange by mail.
Additional Information - If you are not certain of the requirements for
a redemption please call the Transfer Agent at (516) 385-9580. Redemptions
specifying a certain date or share price cannot be accepted and will be
returned. You will be mailed the proceeds on or before the fifth business day
following the redemption. However, payment for redemption made against shares
purchased by check will be made only after the check has been collected, which
normally may take up to fifteen days. Also, when the New York Stock Exchange is
closed (or when trading is restricted) for any reason other than its customary
weekend or holiday closing or under any emergency circumstances, as determined
by the Securities and Exchange Commission, the Fund may suspend redemptions or
postpone payment dates.
Because the Fund incurs certain fixed costs in maintaining shareholder
accounts, the Fund reserves the right to require any shareholder to redeem all
of his or her shares in the Fund on 30 days' written notice if the value of his
or her shares in the Fund is less than $5,000 due to redemption, or such other
minimum amount as the Fund may determine from time to time. An involuntary
redemption constitutes a sale. You should consult your tax adviser concerning
the tax consequences of involuntary redemptions. A shareholder may increase the
value of his or her shares in the Fund to the minimum amount within the 30 day
period. Each share of the Fund is subject to redemption at any time if the Board
of Trustees determines in its sole discretion that failure to so redeem may have
materially adverse consequences to all or any of the shareholders of the Fund.
DIVIDENDS AND DISTRIBUTIONS
<PAGE>
The Fund intends to distribute substantially all of its net investment
income as dividends to its shareholders on an annual basis, and intends to
distribute its net long term capital gains and its net short term capital gains
at least once a year.
Income dividends and capital gain distributions are automatically
reinvested in additional shares at the net asset value per share on the
distribution date. An election to receive a cash payment of dividends and/or
capital gain distributions may be made in the application to purchase shares or
by separate written notice to the Transfer Agent. Shareholders will receive a
confirmation statement reflecting the payment and reinvestment of dividends and
summarizing all other transactions. If cash payment is requested, a check
normally will be mailed within five business days after the payable date. If you
withdraw your entire account, all dividends accrued to the time of withdrawal,
including the day of withdrawal, will be paid at that time. You may elect to
have distributions on shares held in IRAs and 403(b) plans paid in cash only if
you are 59 1/2 years old or permanently and totally disabled or if you otherwise
qualify under the applicable plan.
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.
For federal income tax purposes, dividends paid by the Fund from
ordinary income are taxable to shareholders as ordinary income, but may be
eligible in part for the dividends received deduction for corporations. Pursuant
to the Tax Reform Act of 1986 (the "Tax Reform Act"), all distributions of net
capital gains to individuals are taxed at the same rate as ordinary income. All
distributions of net capital gains to corporations are taxed at regular
corporate
<PAGE>
rates. Any distributions designated as being made from net realized long term
capital gains are taxable to shareholders as long term capital gains regardless
of the holding period of the shareholder.
The Fund will mail to each shareholder after the close of the calendar
year a statement setting forth the federal income tax status of distributions
made during the year. Dividends and capital gains distributions may also be
subject to state and local taxes. Shareholders are urged to consult their own
tax advisers regarding specific questions as to federal, state or local taxes
and the tax effect of distributions and withdrawals from the Fund.
On the application or other appropriate form, the Fund will request the
shareholder's certified taxpayer identification number (social security number
for individuals) and a certification that the shareholder is not subject to
backup withholding. Unless the shareholder provides this information, the Fund
will be required to withhold and remit to the U.S. Treasury 31% of the
dividends, distributions and redemption proceeds payable to the shareholder.
Shareholders should be aware that, under regulations promulgated by the Internal
Revenue Service, the Fund may be fined $50 annually for each account for which a
certified taxpayer identification number is not provided. In the event that such
a fine is imposed with respect to a specific account in any year, the Fund may
make a corresponding charge against the account.
PERFORMANCE INFORMATION
The Fund may advertise information regarding its performance including
its "yield", "average annual total return", and "total return". The performance
figures are based upon historical results and are not intended to indicate
future performance.
The "yield" of the Fund is computed by dividing the net investment
income per share (a defined in applicable regulations of the Securities and
Exchange Commission) during a specified 30-day period by the net asset value
<PAGE>
per share on the last day of such period. Yield is an annualized figure, in that
it assumes that the same level of net investment income is generated over a
one-year period. The yield formula annualizes net investment income by providing
for semi-annual compounding.
The "average annual total return" of the Fund refers to the average
annual compounded rate of return over the stated period that would equate an
initial amount invested at the beginning of a stated period to the ending
redeemable value of the investment. The calculation of "average annual total
return" assumes the reinvestment of all dividends and distributions.
The "total return" of the Fund refers to the compounded rate of return
over a stated period that would equate an initial amount invested at the
beginning of the period to the ending redeemable value of the investment over
various periods. Total return is not annualized. The computation of total return
assumes no activity in the account other than reinvestment of dividends and
capital gains distributions. In addition, a table showing the performance of an
assumed investment of $10,000 may be used from time to time.
The Fund may also include in advertisements data comparing
performance with other mutual funds, including money market funds, as reported
in non-related investment media, published editorial comments and performance
rankings compiled by independent organizations and publications that monitor the
performance of mutual funds (such as Lipper Analytical Services, Inc.,
Morningstar, Inc., Fortune or Barron's). Performance information may be quoted
numerically or may be presented in a table, graph or other illustration. In
addition, Fund performance may be compared to indices of broad groups of
unmanaged securities considered to be representative of or similar to the
portfolio holdings of the Fund or considered to be representative of the cash
equivalent market in general. For example, the Fund may use the Donahue Money
Market Index, 90 day treasury bills, or other money market index published by an
independent third party.
<PAGE>
The advertised performance data of the Fund is based on historical
performance and is not intended to indicate future performance. Rates of total
return quoted by the Fund may be higher or lower than past quotations, and there
can be no assurance that any rate of total return will be maintained. The
principal value of an investment in the Fund will fluctuate so that a
shareholder's shares, when redeemed, may be worth more or less than the
shareholder's original investment.
OPERATION OF THE FUND
The Fund is a diversified series of AmeriPrime Funds, an open-end
management investment company organized as an Ohio business trust on August 8,
1995. The Board of Trustees supervises the business activities of the Fund. Like
other mutual funds, the Fund retains various organizations to perform
specialized services. The Fund retains The Jumper Group, Inc. P.O. Box XXX,
Chattanooga, TN 37450 (the "Advisor") to manage the Fund's investments. The
Advisor is an independent investment advisor that provides fixed income
management for both taxable and tax-exempt clients and currently manages
approximately $60 million in assets. The Advisor is a Tennessee corporation
controlled by Jay Colton Jumper, the President, Director and sole shareholder of
the Advisor. Mr. Jumper is primarily responsible for the day-to-day management
of the Fund's portfolio. Mr. Jumper has served as the Advisor's Chairman and
President since its founding in 1994. Mr. Jumper served with SunTrust Banks from
1988 to 1994 as a Senior Trust Investment Officer in charge of taxable bonds.
Since January, 1994, Mr. Jumper has been president of The Jumper Group, Inc.
The Fund is authorized to pay the Advisor a fee equal to 0.75% of its
average daily net assets. Unlike most other mutual funds, the management fees
paid by the Fund to the Advisor include transfer agency, pricing, custodial,
auditing and legal services, and general administrative and other operating
expenses. The Advisor pays all of the operating expenses of the Fund except
<PAGE>
brokerage, taxes, interest, fees and expenses on non-interested person trustees
and extraordinary expenses. In this regard, it should be noted that most
investment companies pay their own operating expenses directly, while the Fund's
expenses, except those specified above, including transfer agency, pricing,
custodial, auditing and legal services, and general administrative and other
operating expenses are paid by the Advisor.
The Fund retains AmeriPrime Financial Services, Inc. (the
"Administrator") to manage the Fund's business affairs and provide the Fund with
administrative services, including all regulatory reporting and necessary office
equipment, personnel and facilities. The Administrator receives a monthly fee
from the Advisor equal to an annual average rate of 0.10% of the Fund's average
daily net assets up to fifty million dollars, 0.075% of the Fund's average daily
net assets from fifty to one hundred million dollars and 0.050% of the Fund's
average daily net assets over one hundred million dollars (subject to a minimum
annual payment of $30,000). In addition, the Advisor will reimburse the
Administrator for organizational expenses advanced by the Administrator. The
Fund retains American Data Services, Inc., P.O. Box 5536, Hauppauge, New York
11788-0132 (the "Transfer Agent") to serve as transfer agent, dividend paying
agent and shareholder service agent. The Trust retains AmeriPrime Financial
Securities, Inc., 1793 Kingswood Drive, Suite 200, Southlake, Texas 76092 (the
"Distributor") to act as the principal distributor of the Fund's shares. Kenneth
D. Trumpfheller, officer and sole shareholder of the Administrator and the
Distributor, is an officer and trustee of the Trust.
Consistent with the Rules of Fair Practice of the National Association
of Securities Dealers, Inc., and subject to its obligation of seeking best
qualitative execution, the Advisor may give consideration to sales of shares of
the Fund as a factor in the selection of brokers and dealers to execute
portfolio transactions.
GENERAL INFORMATION
Fundamental Policies. The investment limitations set forth in the Statement
of Additional Information as fundamental policies may not be changed without the
<PAGE>
affirmative vote of the majority of the outstanding shares of the Fund. The
investment objective of the Fund may be changed without the affirmative vote of
a majority of the outstanding shares of the Fund. Any such change may result in
the Fund having an investment objective different from the objective which the
shareholders considered appropriate at the time of investment in the Fund.
Shareholder Rights. Any Trustee of the Trust may be removed by vote of
the shareholders holding not less than two-thirds of the outstanding shares of
the Trust. The Trust does not hold an annual meeting of shareholders. When
matters are submitted to shareholders for a vote, each shareholder is entitled
to one vote for each whole share he owns and fractional votes for fractional
shares he owns. All shares of the Fund have equal voting rights and liquidation
rights. Prior to the offering made by this Prospectus, ________________
purchased for investment all of the outstanding shares of the Fund. As a result,
____________________ may be deemed to control the Fund.
Custodian (subsequent purchases) Star Bank, N.A.
P.O. Box 641082
Cincinnati, Ohio 45264
Distributor
AmeriPrime Financial Securities, Inc.
1793 Kingswood Drive, Suite 200
Southlake, Texas 76092
Transfer Agent (initial purchases and all redemption requests) American Data
Services, Inc.
P.O. Box 5536
Hauppauge, New York 11788-0132
Auditors
<PAGE>
McCurdy & Associates CPA's, Inc.
27955 Clemens Road
Westlake, Ohio 44145
No person has been authorized to give any information or to make any
representations, other than those contained in this Prospectus, in connection
with the offering contained in this Prospectus, and if given or made, such
information or representations must not be relied upon as being authorized by
the Fund. This Prospectus does not constitute an offer by the Fund to sell its
shares in any state to any person to whom it is unlawful to make such offer in
such state.
<PAGE>
THE JUMPER STRATEGIC RESERVE FUND
STATEMENT OF ADDITIONAL INFORMATION
_________________, 1997
This Statement of Additional Information is not a prospectus. It should
be read in conjunction with the Prospectus of The Jumper Strategic Reserve Fund
dated ____________________, 1997. A copy of the Prospectus can be obtained by
writing the Transfer Agent at Hauppauge Corporate Center, 150 Motor Parkway,
Hauppauge, New York 11760, or by calling 1-800-_______________.
ASA02DEE-010998-02
<PAGE>
STATEMENT OF ADDITIONAL INFORMATION
TABLE OF CONTENTS
PAGE
DESCRIPTION OF THE TRUST.....................................................1
ADDITIONAL INFORMATION ABOUT FUND INVESTMENTS AND RISK
CONSIDERATIONS............................................................ 1
INVESTMENT LIMITATIONS
THE INVESTMENT ADVISOR..................................................... 8
TRUSTEES AND OFFICERS...................................................... 9
PORTFOLIO TRANSACTIONS AND BROKERAGE....................................... 10
DETERMINATION OF SHARE PRICE............................................... 11
INVESTMENT PERFORMANCE..................................................... 11
CUSTODIAN.................................................................. 12
TRANSFER AGENT............................................................. 12
ACCOUNTANTS................................................................ 12
DISTRIBUTOR................................................................ 13
FINANCIAL STATEMENTS....................................................... 14
<PAGE>
DESCRIPTION OF THE TRUST
The Jumper Strategic Reserve Fund (the "Fund") was organized as a series of
AmeriPrime Funds (the "Trust"). The Trust is an open-end investment company
established under the laws of Ohio by an Agreement and Declaration of Trust
dated August 8, 1995 (the "Trust Agreement"). The Trust Agreement permits the
Trustees to issue an unlimited number of shares of beneficial interest of
separate series without par value. The Fund is one of a series of funds
currently authorized by the Trustees.
Each share of a series represents an equal proportionate interest in the assets
and liabilities belonging to that series with each other share of that series
and is entitled to such dividends and distributions out of income belonging to
the series as are declared by the Trustees. The shares do not have cumulative
voting rights or any preemptive or conversion rights, and the Trustees have the
authority from time to time to divide or combine the shares of any series into a
greater or lesser number of shares of that series so long as the proportionate
beneficial interest in the assets belonging to that series and the rights of
shares of any other series are in no way affected. In case of any liquidation of
a series, the holders of shares of the series being liquidated will be entitled
to receive as a class a distribution out of the assets, net of the liabilities,
belonging to that series. Expenses attributable to any series are borne by that
series. Any general expenses of the Trust not readily identifiable as belonging
to a particular series are allocated by or under the direction of the Trustees
in such manner as the Trustees determine to be fair and equitable. No
shareholder is liable to further calls or to assessment by the Trust without his
or her express consent.
Upon sixty days prior written notice to shareholders, the Fund may make
redemption payments in whole or in part in securities or other property if the
Trustees determine that existing conditions make cash payments undesirable. For
other information concerning the purchase and redemption of shares of the Fund,
see "How to Invest in the Fund" and "How to Redeem Shares" in the Fund's
Prospectus. For a description of the methods used to determine the share price
and value of the Fund's assets, see "Share Price Calculation" in the Fund's
Prospectus.
ADDITIONAL INFORMATION ABOUT FUND INVESTMENTS AND RISK
CONSIDERATIONS
This section contains a more detailed discussion of some of the investments the
Fund may make and some of the techniques it may use, as described in the
Prospectus.
A. Illiquid Securities. The Fund will not invest more than 15% of its net
assets in illiquid securities. Securities may be illiquid because they are
unlisted, subject to legal restrictions on resale or due to other factors which,
in the adviser's opinion, raise a question concerning the fund's ability to
liquidate the securities in a timely and orderly way without substantial loss.
<PAGE>
Illiquid securities may also present difficult valuation issues.
B. Pricing of Portfolio Securities There is no active market for the
securities of underlying funds which the Fund invests in. Underlying funds
typically value, and stand ready to redeem, their securities based upon current
net asset value, which they provide to shareholders on a periodic basis. The
Board of Trustees has approved procedures whereby the Fund's investment in
securities for which market quotations are not readily available (including
securities issued by underlying funds) may be established in good faith at fair
value on a daily basis. The procedures provide that the fair value of securities
issued by underlying funds is determined based upon current estimates of net
asset value provided to the Fund by the underlying funds. While the Fund has
adopted pricing procedures which address these pricing issues, there can be no
guarantee that such securities are accurately valued on a daily basis when the
Fund determines its net asset value per share.
C. Legal Investment Limitations on Investments in Underlying Securities
Like all mutual funds publicly sold in the United States, the Fund is subject to
investment limitations imposed by the Investment Company Act of 1940 ("1940
Act"). Section 12(d)(1) of the 1940 Act limits the Fund's ability to invest in
other investment companies, including underlying funds. In general, sub-section
(A) prohibits the Fund from:(1) purchasing more than 3% of the voting stock of
an investment company:(2) investing more than 5% of the Fund's total assets in
an investment company; or (3) investing more than 10% of the Fund's total assets
in all investment companies combined. Sub-section (F) provides an exception from
the prohibitions established in sub-section (A) if:(1) the Fund does not own
more than 3% of the outstanding stock of any investment company; (2) the Fund
does not impose a sales load of more than 1.5% (the Fund is only sold on a
no-load basis); and (3) the investment companies are not required to redeem more
than 1% of their outstanding shares within any 30 day period. This discussion
provides only a summary of section 12(d)(1) of the 1940 Act.
D. Repurchase Agreements. A repurchase agreement is a short-term investment
in which the purchaser (i.e., the Fund) acquires ownership of a U.S. Government
obligation (which may be of any maturity) and the seller agrees to repurchase
the obligation at a future time at a set price, thereby determining the yield
during the purchaser's holding period (usually not more than seven days from the
date of purchase). Any repurchase transaction in which the Fund engages will
require full collateralization of the seller's obligation during the entire term
of the repurchase agreement. In the event of a bankruptcy or other default of
the seller, the Fund could experience both delays in liquidating the underlying
security and losses in value.
<PAGE>
However, the Fund intends to enter into repurchase agreements only with the
Custodian, other banks with assets of $1 billion or more and registered
securities dealers determined by the Advisor (subject to review by the Board of
Trustees) to be creditworthy. The Advisor monitors the creditworthiness of the
banks and securities dealers with which the Fund engages in repurchase
transactions.
E.
Reverse Repurchase Agreements. Reverse repurchase agreements involve sales
of portfolio securities by the Fund to member banks of the Federal Reserve
System or recognized securities dealers, concurrently with an agreement by the
Fund to repurchase the same securities at a later date at a fixed price, which
is generally equal to the original sales price plus interest. The Fund retains
record ownership and the right to receive interest and principal payments on the
portfolio security involved. The Fund's objective in such a transaction would be
to obtain funds to pursue additional investment opportunities whose yield would
exceed the cost of the reverse repurchase transaction. Generally, the use of
reverse repurchase agreements should reduce portfolio turnover and increase
yield.
In connection with each reverse repurchase agreement, the Fund will direct its
Custodian to place cash or U.S. government obligations in a separate account in
an amount equal to the repurchase price. In the event of bankruptcy or other
default by the purchaser, the Fund could experience both delays in repurchasing
the portfolio securities and losses.
F. Borrowing and Leveraging. The Fund may have to deal with unpredictable
cash flows as shareholders purchase and redeem shares. Under adverse conditions,
the Fund might have to sell portfolio securities to raise cash to pay for
redemptions at a time when investment considerations would not favor such sales.
In addition, frequent purchases and sales of portfolio securities tend to
decrease the Funds' performance by increasing transaction expenses.
The Fund may deal with unpredictable cash flows by borrowing money. Through such
borrowings the Fund may avoid selling portfolio securities to raise cash to pay
for redemptions at a time when investment considerations would not favor such
sales. In addition, the Fund's performance may be improved due to a decrease in
the number of portfolio transactions. After borrowing money, if subsequent
shareholder purchases do not provide sufficient cash to repay the borrowed
monies, the Fund will liquidate portfolio securities in an orderly manner to
repay the borrowed monies.
To the extent that a Fund borrows money prior to selling securities, or if the
Fund borrows money for the purpose of purchasing additional portfolio
securities, the Fund would be leveraged such that the Fund's net assets may
appreciate or depreciate in value more than an unleveraged portfolio of similar
securities. Since substantially all of the Fund's assets will fluctuate in value
<PAGE>
and whereas the interest obligations on borrowings may be fixed, the net asset
value per share of the Fund will increase more when the Fund's portfolio assets
increase in value and decrease more when the Fund's portfolio assets decrease in
value than would otherwise be the case. Moreover, interest costs on borrowings
may fluctuate with changing market rates of interest and may partially offset or
exceed the returns which the Funds earn on portfolio securities. Under adverse
conditions, the Funds might be forced to sell portfolio securities to meet
interest or principal payments at a time when market conditions would not be
conducive to favorable selling prices for the securities.
STRATEGIC TRANSACTIONS
The Fund, or the underlying funds, may purchase and sell exchange-listed and
over-the-counter put and call options on securities, equity and fixed-income
indices and other financial instruments, and purchase and sell financial futures
contracts and options thereon (collectively, all the above are called "Strategic
Transactions"). The Fund may engage in Strategic Transactions for hedging, risk
management, portfolio management, or speculation, and it will comply with
applicable regulatory requirements when implementing these strategies,
techniques and instruments.
Strategic Transactions may be used to attempt (1) to protect against possible
changes in the market value of securities held in or to be purchased for a
Fund's portfolio resulting from securities markets or currency exchange rate
fluctuations, (2) to protect a Fund's unrealized gains in the value of its
portfolio securities, (3) to facilitate the sale of such securities for
investment purposes, (4) to manage the effective maturity or duration of a
Fund's portfolio, (5) to establish a position in the derivatives markets as a
temporary substitute for purchasing or selling particular securities, (6) or to
gain additional market exposure and/or leverage in an attempt to enhance
investment returns. The Fund's ability to successfully use these Strategic
Transactions will depend upon the Advisor's ability to predict pertinent market
movements, and cannot be assured. Engaging in Strategic Transactions will
increase transaction expenses and may result in a loss that exceeds the
principal invested in the transactions.
Strategic Transactions have risk associated with them including possible default
by the other party to the transaction, illiquidity and, to the extent the
Advisor's view as to certain market movements is incorrect, the risk that the
use of such Strategic Transactions could result in losses greater than if they
had not been used. Use of put and call options may result in losses to the Fund.
For example, selling call options may force the sale of portfolio securities at
inopportune times or for lower prices than current market values. Selling call
options may also limit the amount of appreciation a Fund can realize on its
investments or cause a Fund to hold a security it might otherwise sell. The use
of currency transactions can result in a Fund incurring losses as a result of a
number of factors including the imposition of exchange controls, suspension of
settlements, or the inability to deliver or receive a specified currency. The
use of options and futures transactions entails certain other risks. In
particular, the
<PAGE>
variable degree of correlation between price movements of futures contracts and
price movements in the related portfolio position of a Fund creates the
possibility that losses on the hedging instrument may be greater than gains in
the value of a Fund's position. In addition, futures and option markets may not
be liquid in all circumstances and certain over-the-counter options may have no
markets. As a result, in certain markets, a Fund might not be able to close out
a transaction, and substantial losses might be incurred. However, the use of
futures and options transactions for hedging should tend to minimize the risk of
loss due to a decline in the value of a hedged position. At the same time they
tend to limit any potential gain that might result from an increase in value of
such position. Finally, the daily variation margin requirement for futures
contracts would create a greater on going potential financial risk than would
purchases of options, where the exposure is limited to the cost of the initial
premium. Losses resulting from the use of Strategic Transactions would reduce
net asset value, and possibly income, and such losses can be greater than if the
Strategic Transactions had not been used.
The Fund's activities involving Strategic Transactions may be limited by the
requirements of Subchapter M of the Internal Revenue Code for qualification as a
regulated investment company.
Put and Call Options The Fund may purchase and sell (issue) both put and call
options. The Fund may also enter into transactions to close out its investment
in any put or call options. A put option gives the purchaser of the option, upon
payment of a premium, the right to sell, and the issuer of the option the
obligation to buy the underlying security, commodity, index, currency or other
instrument at the exercise price. For instance, the Fund's purchase of a put
option on a security might be designed to protect its holdings in the underlying
instrument (or, in some cases, a similar instrument) against a substantial
decline in the market value by giving the Fund the right to sell such instrument
at the option exercise price. A call option, upon payment of a premium, gives
the purchaser of the option the right to buy, and the issuer the obligation to
sell, the underling instrument at the exercise price. The Fund's purchase of a
call option on a security, financial future, index currency or other instrument
might be intended to protect the Fund against an increase in the price of the
underlying instrument that it intends to purchase in the future by fixing the
price at which it may purchase such instrument. An "American style" put or call
option may be exercised at any time during the option period while a "European
style" put or call option may be exercised only upon expiration or during a
fixed period prior thereto.
The Fund is authorized to purchase and sell both exchange listed options and
over-the-counter options ("OTC options"). Exchange listed options are issued by
a regulated intermediary such as the Options Clearing Corporation ("OCC"), which
guarantees the performance of the obligations of the parties to such options.
OTC options are purchased from or sold to securities dealers, financial
institutions or other parties, ["Counterparty(ies)"], through direct bilateral
agreement with the Counterparty. In contrast to exchange listed options, which
generally have standardized terms and performance mechanics, all the terms of an
OTC option are set by
<PAGE>
negotiation of the parties. Unless the parties provide for it, there is no
central clearing or guaranty function in an OTC option.
The Fund's ability to close out its position as a purchaser or seller of a put
or call option is dependent, in part, upon the liquidity of the market for that
particular option. Exchange listed options, because they are standardized and
not subject to Counterparty credit risk, are generally more liquid than OTC
options. There can be no guarantee that a Fund will be able to close out an
option position, whether in exchange listed options or OTC options, when
desired. An inability to close out its options positions may reduce the Fund's
anticipated profits or increase its losses.
If the Counterparty to an OTC option fails to make or take delivery of the
security, currency or other instrument underlying an OTC option it has entered
into with a Fund, or fails to make a cash settlement payment due in accordance
with the terms of that option, a Fund may lose any premium it paid for the
option as well as any anticipated benefit of the transaction. Accordingly, the
Advisor must assess the creditworthiness of each such Counterparty or any
guarantor or credit enhancement of the Counterparty's credit to determine the
likelihood that the terms of the OTC option will be satisfied.
The Fund will realize a loss equal to all or a part of the premium paid for an
option if the price of the underlying security, commodity, index, currency or
other instrument security decreases or does not increase by more than the
premium (in the case of a call option), or if the price of the underlying
security, commodity, index, currency or other instrument increases or does not
decrease by more than the premium (in the case of a put option). A Fund will not
purchase any option if, immediately thereafter, the aggregate market value of
all outstanding options purchased by the Fund would exceed 5% of the Fund's
total assets.
If the Fund sells (i.e., issues) a call option, the premium that it receives may
serve as a partial hedge, to the extent of the option premium, against a
decrease in the value of the underlying securities or instruments in its
portfolio, or may increase the Fund's income. If the Fund sells (i.e., issues) a
put option, the premium that it receives may serve to reduce the cost of
purchasing the underlying security, to the extent of the option premium, or may
increase the Fund's capital gains. All options sold by the Fund must be
"covered" (i.e., the Fund must either be long (when selling a call option) or
short (when selling a put option), the securities or futures contract subject to
the calls or must meet the asset segregation requirements described below as
long as the option is outstanding. Even though a Fund will receive the option
premium to help protect it against loss or reduce its cost basis, an option sold
by the Fund exposes the Fund during the term of the option to possible loss.
When selling a call, the Fund is exposed to the loss of opportunity to realize
appreciation in the market price of the underlying security or instrument, and
the transaction may require the Fund to hold a security or instrument that it
might otherwise have sold. When selling a put, the Fund is exposed to the
possibility of being required to pay greater than current market value to
purchase the underlying security, and the transaction may require the Fund to
maintain a short position in a
<PAGE>
security or instrument it might otherwise not have maintained.
Futures Contracts. The Fund may enter into financial futures contracts or
purchase or sell put and call options on such futures as a hedge against
anticipated interest rate, currency or equity market changes, for duration
management and for risk management purposes. Futures are generally bought and
sold on the commodities exchange where they are listed with payment of an
initial variation margin as described below. The sale of a futures contract
creates a firm obligation by a Fund, as seller, to deliver to the buyer the
specific type of financial instrument called for in the contract at a specific
future time for a specified price (or, with respect to index futures and
Eurodollar instruments, the net cash amount). Options on futures contracts are
similar to options on securities except that an option on a futures contract
gives the purchaser the right in return for the premium paid to assume a
position in a futures contract and obligates the seller to deliver such
position.
The Fund's use of financial futures and options thereon will in all cases be
consistent with applicable regulatory requirements and in particular the rules
and regulations of the CFTC and will be entered into only for bona fide hedging,
risk management (including duration management) or other portfolio management
purposes. Typically, maintaining a futures contract or selling an option thereon
requires a Fund to deposit with a financial intermediary as security for its
obligations an amount of cash or other specified assets (initial margin) that
initially is typically 1% to 10% of the face amount of the contract (but may be
higher in some circumstances). Additional cash or assets (variation margin) may
be required to be deposited thereafter on a daily basis as the marked-to-market
value of the contract fluctuates. The purchase of an option on financial futures
involves payment of a premium for the option without any further obligation on
the part of the purchaser. If a Fund exercises an option on a futures contract,
it will be obligated to post initial margin (and potentially subsequent
variation margin) for the resulting futures position just as it would for any
futures position. Futures contracts and options thereon are generally settled by
entering into an offsetting transaction, but there can be no assurance that the
position can be offset, before settlement, at an advantageous price, nor that
delivery will occur.
The Fund will not enter into a futures contract or related option (except for
closing transactions) if, immediately afterwards, the sum of the amount of its
initial margin and premiums on open futures contracts and options thereon would
exceed 5% of the Fund's total assets (taken at current value). However, in the
case of an option that is in-the-money at the time of the purchase, the
in-the-money amount may be excluded in calculating the 5% limitation. The
segregation requirements with respect to futures contracts and options thereon
are described below.
Use of Segregated and Other Special Accounts. Many Strategic Transactions, in
addition to other requirements, require that the Fund segregate liquid high
grade assets with its custodian to the extent that the Fund's obligations are
not otherwise "covered" through ownership of the underlying security, financial
instrument or currency. In general, either the full amount of any
<PAGE>
obligation of the Fund to pay or deliver securities or assets must be covered at
all times by the securities, instruments or currency required to be delivered,
or subject to any regulatory restrictions, an amount of cash or liquid high
grade debt securities at least equal to the current amount of the obligation
must either be identified as being restricted in the Fund's accounting records
or physically segregated in a separate account at that Fund's custodian. The
segregated assets cannot be sold or transferred unless equivalent assets are
substituted in their place or it is no longer necessary to segregate them. For
the purpose of determining the adequacy of the liquid securities that have been
restricted, the securities will be valued at market or fair value. If the market
or fair value of such securities declines, additional cash or liquid securities
will be restricted on a daily basis so that the value of the restricted cash or
liquid securities, when added to the amount deposited with the broker as margin,
equals the amount of such commitments by the Fund.
INVESTMENT LIMITATIONS
Fundamental. The investment limitations described below have been adopted by the
Trust with respect to the Fund and are fundamental ("Fundamental"), i.e., they
may not be changed without the affirmative vote of a majority of the outstanding
shares of the Fund. As used in the Prospectus and this Statement of Additional
Information, the term "majority" of the outstanding shares of the Fund means the
lesser of (1) 67% or more of the outstanding shares of the Fund present at a
meeting, if the holders of more than 50% of the outstanding shares of the Fund
are present or represented at such meeting; or (2) more than 50% of the
outstanding shares of the Fund. Other investment practices which may be changed
by the Board of Trustees without the approval of shareholders to the extent
permitted by applicable law, regulation or regulatory policy are considered
non-fundamental ("Non-Fundamental").
1.
Borrowing Money. The Fund will not borrow money, except (a) from a bank,
provided that immediately after such borrowing there is an asset coverage of
300% for all borrowings of the Fund; or (b) from a bank or other persons for
temporary purposes only, provided that such temporary borrowings are in an
amount not exceeding 5% of the Fund's total assets at the time when the
borrowing is made. This limitation does not preclude the Fund from entering into
reverse repurchase transactions, provided that the Fund has an asset coverage of
300% for all borrowings and repurchase commitments of the Fund pursuant to
reverse repurchase transactions.
2.
Senior Securities. The Fund will not issue senior securities. This limitation is
not applicable to activities that may be deemed to involve the issuance or sale
of a senior security by the Fund, provided that the Fund's engagement in such
activities is consistent with or permitted by the Investment Company Act of
1940, as amended, the rules and regulations promulgated thereunder or
interpretations of the Securities and Exchange Commission or its staff.
<PAGE>
3.
Underwriting. The Fund will not act as underwriter of securities issued by other
persons. This limitation is not applicable to the extent that, in connection
with the disposition of portfolio securities (including restricted securities),
the Fund may be deemed an underwriter under certain federal securities laws.
4.
Real Estate. The Fund will not purchase or sell real estate. This limitation is
not applicable to investments in marketable securities which are secured by or
represent interests in real estate. This limitation does not preclude the Fund
from investing in mortgage-related securities or investing in companies engaged
in the real estate business or that have a significant portion of their assets
in real estate (including real estate investment trusts).
5.
Commodities. The Fund will not purchase or sell commodities unless acquired as a
result of ownership of securities or other investments. This limitation does not
preclude the Fund from purchasing or selling options or futures contracts, from
investing in securities or other instruments backed by commodities or from
investing in companies which are engaged in a commodities business or have a
significant portion of their assets in commodities.
6.
Loans. The Fund will not make loans to other persons, except (a) by loaning
portfolio securities, (b) by engaging in repurchase agreements, or (c) by
purchasing nonpublicly offered debt securities. For purposes of this limitation,
the term "loans" shall not include the purchase of a portion of an issue of
publicly distributed bonds, debentures or other securities.
7. Concentration. The Fund will not invest 25% or more of its total assets
in a particular industry. This limitation is not applicable to investments in
obligations issued or guaranteed by the U.S. government, its agencies and
instrumentalities or repurchase agreements with respect thereto.
With respect to the percentages adopted by the Trust as maximum limitations on
its investment policies and limitations, an excess above the fixed percentage
will not be a violation of the policy or limitation unless the excess results
immediately and directly from the acquisition of any security or the action
taken. This paragraph does not apply to the borrowing policy set forth in
paragraph 1 above.
Notwithstanding any of the foregoing limitations, any investment company,
whether organized as a trust, association or corporation, or a personal holding
company, may be merged or consolidated with or acquired by the Trust, provided
that if such merger, consolidation or acquisition results in an investment in
the securities of any issuer prohibited by said paragraphs, the Trust shall,
within ninety days after the consummation of such merger,
<PAGE>
consolidation or acquisition, dispose of all of the securities of such issuer so
acquired or such portion thereof as shall bring the total investment therein
within the limitations imposed by said paragraphs above as of the date of
consummation.
THE INVESTMENT ADVISOR
The Fund's investment advisor is The Jumper Group, Inc. Jay C. Jumper may
be deemed to be a controlling person of the Advisor due to his ownership of the
shares of the corporation.
Under the terms of the management agreement (the "Agreement"), the Advisor
manages the Fund's investments subject to approval of the Board of Trustees and
pays all of the expenses of the Fund except brokerage, taxes, interest, fees and
expenses of the non-interested person trustees and extraordinary expenses. As
compensation for its management services and agreement to pay the Fund's
expenses, the Fund is obligated to pay the Advisor a fee computed and accrued
daily and paid monthly at an annual rate of 0.75%. The Advisor may waive all or
part of its fee, at any time, and at its sole discretion, but such action shall
not obligate the Advisor to waive any fees in the future.
The Advisor retains the right to use the name "Jumper" in connection with
another investment company or business enterprise with which the Advisor is or
may become associated. The Trust's right to use the name "Jumper" automatically
ceases ninety days after termination of the Agreement and may be withdrawn by
the Advisor on ninety days written notice.
The Advisor may make payments to banks or other financial institutions that
provide shareholder services and administer shareholder accounts. The
Glass-Steagall Act prohibits banks from engaging in the business of
underwriting, selling or distributing securities. Although the scope of this
prohibition under the Glass-Steagall Act has not been clearly defined by the
courts or appropriate regulatory agencies, management of the Fund believes that
the Glass-Steagall Act should not preclude a bank from providing such services.
However, state securities laws on this issue may differ from the interpretations
of federal law expressed herein and banks and financial institutions may be
required to register as dealers pursuant to state law. If a bank were prohibited
from continuing to perform all or a part of such services, management of the
Fund believes that there would be no material impact on the Fund or its
shareholders. Banks may charge their customers fees for offering these services
to the extent permitted by applicable regulatory authorities, and the overall
return to those shareholders availing themselves of the bank services will be
lower than to those shareholders who do not. The Fund may from time to time
purchase securities issued by banks which provide such services; however, in
selecting investments for the Fund, no preference will be shown for such
securities.
<PAGE>
TRUSTEES AND OFFICERS
The names of the Trustees and executive officers of the Trust are shown below.
Each Trustee who is an "interested person" of the Trust, a defined in the
Investment Company Act of 1940, is indicated by an asterisk.
<TABLE>
<CAPTION>
===================================================================================================================================
Name, Age and Address Position Principal Occupations During
Past 5 Years
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
* Kenneth D. Trumpfheller President and Trustee President, Treasurer and Secretary of AmeriPrime
Age: 39 Financial Services, Inc., the Fund's administrator, and
1793 Kingswood Drive AmeriPrime Financial Securities, Inc., the Fund's
Suite 200 distributor. Prior to December 1994, a senior client
Southlake, Texas 76092 executive with SEI Financial Services.
- -----------------------------------------------------------------------------------------------------------------------------------
Julie A. Feleo Secretary, Treasurer Secretary, Treasurer and Chief Financial Officer of
AmeriPrime Financial Services, Inc. and AmeriPrime
Age: 31 Financial Securities, Inc.; Fund Reporting Analyst at
Fidelity Investments from 1993 to 1997; Fund
1793 Kingswood Drive Accounting Analyst at Fidelity Investments in 1993.
Prior to 1993, Accounting Manager at Windows
Suite 200 Presentation Manager Association.
Southlake, Texas 76092
- -----------------------------------------------------------------------------------------------------------------------------------
Steve L. Cobb Trustee President of Chandler Engineering Company, L.L.C.,
Age: 40 oil and gas services company; various positions with
2001 Indianwood Ave. Carbo Ceramics, Inc., oil field manufacturing/supply
Broken Arrow, OK 74012 company, from 1984 to 1997, most recently Vice
President of Marketing.
-7-
<PAGE>
- -----------------------------------------------------------------------------------------------------------------------------------
Gary E. Hippenstiel Trustee Director, Vice President and Chief Investment Officer
Age: 50 of Legacy Trust Company since 1992; President and
32 Sunlit Forest Drive Director of Heritage Trust Company from 1994 to
The Woodlands, Texas 77381 1996; Vice President and Manager of Investments of
Kanaly
Trust Company from 1988 to 1992.
===================================================================================================================================
</TABLE>
<PAGE>
1 Trustee fees are Trust expenses and each series of the Trust pays a portion of
the Trustee fees. The compensation is estimated for the first full year of the
Trust ending October 31, 1998.
The compensation paid to the Trustees of the Trust for the period ended
October 31, 1997 is set forth in the following table. Trustee fees are Trust
expenses and each series of the Trust is responsible for a portion of the
Trustee fees.
Name
Aggregate
Compensation
from Trust
Total Compensation
from Trust (the Trust is
not in a Fund Complex)
Kenneth D. Trumpfheller
0
0
Steve L. Cobb
$4,000
$4,000
Gary E. Hippenstiel
$4,000
$4,000
PORTFOLIO TRANSACTIONS AND BROKERAGE
Subject to policies established by the Board of Trustees of the Trust,
the Advisor is responsible for the Fund's portfolio decisions and the placing of
the Fund's portfolio transactions. In placing portfolio transactions, the
Advisor seeks the best qualitative execution for the Fund, taking into account
such factors as price (including the applicable brokerage commission or dealer
spread), the execution capability, financial responsibility and responsiveness
of the broker or dealer and the brokerage and research services provided by the
broker or dealer. The Advisor generally seeks favorable prices and commission
rates that are reasonable in relation to the benefits received.
The Advisor is specifically authorized to select brokers or dealers who
also provide brokerage and research services to the Fund and/or the other
accounts over which the Advisor exercises investment discretion and to pay such
brokers or dealers a commission in excess of the commission another broker or
dealer would charge if the Advisor determines in good faith that the commission
is reasonable in relation to the value of the brokerage and research services
provided. The determination may be viewed in terms of a particular transaction
or the Advisor's overall
<PAGE>
responsibilities with respect to the Trust and to other accounts over which it
exercises investment discretion.
Research services include supplemental research, securities and
economic analyses, statistical services and information with respect to the
availability of securities or purchasers or sellers of securities and analyses
of reports concerning performance of accounts. The research services and other
information furnished by brokers through whom the Fund effects securities
transactions may also be used by the Advisor in servicing all of its accounts.
Similarly, research and information provided by brokers or dealers serving other
clients may be useful to the Advisor in connection with its services to the
Fund. Although research services and other information are useful to the Fund
and the Advisor, it is not possible to place a dollar value on the research and
other information received. It is the opinion of the Board of Trustees and the
Advisor that the review and study of the research and other information will not
reduce the overall cost to the Advisor of performing its duties to the Fund
under the Agreement.
Over-the-counter transactions will be placed either directly with
principal market makers or with broker-dealers, if the same or a better price,
including commissions and executions, is available. Fixed income securities are
normally purchased directly from the issuer, an underwriter or a market maker.
Purchases include a concession paid by the issuer to the underwriter and the
purchase price paid to a market maker may include the spread between the bid and
asked prices.
To the extent that the Trust and another of the Advisor's clients seek
to acquire the same security at about the same time, the Trust may not be able
to acquire as large a position in such security as it desires or it may have to
pay a higher price for the security. Similarly, the Trust may not be able to
obtain as large an execution of an order to sell or as high a price for any
particular portfolio security if the other client desires to sell the same
portfolio security at the same time. On the other hand, if the same securities
are bought or sold at the same time by more than one client, the resulting
participation in volume transactions could produce better executions for the
Trust. In the event that more than one client wants to purchase or sell the same
security on a given date, the purchases and sales will normally be made by
random client selection.
DETERMINATION OF SHARE PRICE
The price (net asset value) of the shares of the Fund is determined as
of 4:00 p.m., Eastern time on each day the Trust is open for business and on any
other day on which there is sufficient trading in the Fund's securities to
materially affect the net asset value. The Trust is open for business on every
day except Saturdays, Sundays and the following holidays: New Year's Day, Martin
Luther King, Jr. Day, President's Day, Good Friday, Memorial Day, Independence
Day, Labor Day, Thanksgiving and Christmas. For a description of the methods
used to determine the net asset value (share price), see "Share Price
Calculation" in the Prospectus.
<PAGE>
INVESTMENT PERFORMANCE
"Average annual total return," as defined by the Securities and
Exchange Commission, is computed by finding the average annual compounded rates
of return (over the one and five year periods and the period from initial public
offering through the end of the Fund's most recent fiscal year) that would
equate the initial amount invested to the ending redeemable value, according to
the following formula:
P(1+T)n=ERV
Where: P = a hypothetical $1,000 initial investment
T = average annual total return
n = number of years
ERV = ending redeemable value at the end of the applicable
period of the hypothetical $1,000 investment made at
the beginning of the applicable period.
The computation assumes that all dividends and distributions are reinvested at
the net asset value on the reinvestment dates and that a complete redemption
occurs at the end of the applicable period.
The Fund's investment performance will vary depending upon market
conditions, the composition of the Fund's portfolio and operating expenses of
the Fund. These factors and possible differences in the methods and time periods
used in calculating non-standardized investment performance should be considered
when comparing the Fund's performance to those of other investment companies or
investment vehicles. The risks associated with the Fund's investment objective,
policies and techniques should also be considered. At any time in the future,
investment performance may be higher or lower than past performance, and there
can be no assurance that any performance will continue.
From time to time, in advertisements, sales literature and information
furnished to present or prospective shareholders, the performance of the Fund
may be compared to indices of broad groups of unmanaged securities considered to
be representative of or similar to the portfolio holdings of the Fund or
considered to be representative of the cash equivalent market in general. For
example, the Fund may use the Donahue Money Market Index, 90 day treasury bills,
or other money market index published by an independent third party.
In addition, the performance of the Fund may be compared to other
groups of mutual funds tracked by any widely used independent research firm
which ranks mutual funds by overall performance, investment objectives and
assets, such as Lipper Analytical Services, Inc. or Morningstar, Inc. The
objectives, policies, limitations and expenses of other mutual funds in a group
may not be the same as those of the Fund. Performance rankings and ratings
reported periodically in national financial publications such as Barron's and
Fortune also may be used.
CUSTODIAN
<PAGE>
Star Bank, N.A., 425 Walnut Street, Cincinnati, Ohio 45202, is
Custodian of the Fund's investments. The Custodian acts as the Fund's
depository, safekeeping its portfolio securities, collects all income and other
payments with respect thereto, disburses funds at the Fund's request and
maintains records in connection with its duties.
TRANSFER AGENT
American Data Services, Inc., Hauppauge Corporate Center, 150 Motor
Parkway, Hauppauge, New York 11760, acts as the Fund's transfer agent and, in
such capacity, maintains the records of each shareholder's account, answers
shareholders' inquiries concerning their accounts, processes purchases and
redemptions of the Fund's shares, acts as dividend and distribution disbursing
agent and performs other accounting and shareholder service functions. In
addition, American Data Services, Inc. provides the Fund with certain monthly
reports, record-keeping and other management-related services.
ACCOUNTANTS
The firm of McCurdy & Associates, CPA's, 27955 Clemens Road, Westlake,
Ohio 44145, has been selected as independent public accountants for the Trust
for the fiscal year ending October 31, 1998. McCurdy & Associates performs an
annual audit of the Fund's financial statements and provides financial, tax and
accounting consulting services as requested.
DISTRIBUTOR
AmeriPrime Financial Securities, Inc., 1793 Kingswood Drive, Suite 200,
Southlake, Texas 76092, is the exclusive agent for distribution of shares of the
Fund. The Distributor is obligated to sell the shares of the Fund on a best
efforts basis only against purchase orders for the shares.
Shares of the Fund are offered to the public on a continuous basis.
FINANCIAL STATEMENTS
The Fund was established as a separate series of the trust on ________, 1997,
and does not yet have an operating history. The Fund will send shareholders
annual and semi-annual reports as they become available.
<PAGE>
<PAGE>
AmeriPrime Funds
PART C. OTHER INFORMATION
Item 24. Financial Statements and Exhibits
(a) Financial Statements.
Included in Part A: None
Included in Part B: None
(b) Exhibits
(1) (i) Copy of Registrant's Declaration of Trust which was filed as an
Exhibit to Registrants's Post-Effective Amendment No. 11 is hereby incorporated
by reference.
(ii) Copy of Amendment No. 1 to Registrant's Declaration of Trust which was
filed as an Exhibit to Registrants's Post-Effective Amendment No. 11 is hereby
incorporated by reference.
(iii) Copy of Amendment No. 2 to Registrant's Declaration of Trust, which
was filed as an Exhibit to Registrant's Post-Effective Amendment No. 1, is
hereby incorporated by reference.
(iv) Copy of Amendment No. 3 to Registrant's Declaration of Trust, which
was filed as an Exhibit to Registrant's Post-Effective Amendment No. 4, is
hereby incorporated by reference.
(v) Copy of Amendment No. 4 to Registrant's Declaration of Trust, which was
filed as an Exhibit to Registrant's Post-Effective Amendment No. 4, is hereby
incorporated by reference.
(vi) Copy of Amendment No. 5 and Amendment No. 6 to Registrant's
Declaration of Trust, which were filed as an Exhibit to Registrant's
PostEffective Amendment No. 8, are hereby incorporated by reference.
(viii) Copy of Amendment No. 7 which was filed as an Exhibit to
Registrants's Post-Effective Amendment No. 11 is hereby incorporated by
reference.
(ix) Copy of Amendment No. 8 to Registrants Declaration of Trust, which was
filed as an Exhibit to Registrant's Post-Effective Amendment No.12, is
hereby incorporated by reference.
(2) Copy of Registrant's By-Lawswhich was filed as an Exhibit to
Registrants's Post-Effective Amendment No. 11 is hereby incorporated by
reference.
(3) Voting Trust Agreements - None.
(4) Specimen of Share Certificates - None.
(5) (i) Copy of Registrant's Management Agreement with Carl Domino
Associates, L.P., Adviser to Carl Domino Equity Income Fund, which was filed as
an Exhibit to Post-Effective Amendment No. 11 is hereby incorporated by
reference.
(ii) Copy of Registrant's Management Agreement with Jenswold, King &
Associates, Adviser to Fountainhead Special Value Fund, which was filed as an
Exhibit to Registrant's PostEffective Amendment No. 8, is hereby incorporated by
reference.
(iii) Copy of Registrant's Management Agreement with Advanced Investment
Technology, Inc., Adviser to AIT Vision U.S. Equity Portfolio, which was filed
as an Exhibit to Post-Effective Amendment No. 11 is hereby incorporated by
reference.
(iv) Copy of Registrant's Management Agreement with GLOBALT, Inc., Adviser
to GLOBALT Growth Fund, which was filed as an Exhibit to Post-Effective
Amendment No. 11 is hereby incorporated by reference.
(v) Copy of Registrant's Management Agreement with Newport Investment
Advisors, Inc., Adviser to the MAXIM Contrarian Fund, which was filed as an
Exhibit to Registrant's Post-Effective Amendment No. 2, is hereby incorporated
by reference.
(vi) Copy of Registrant's Management Agreement with IMS Capital Management,
Inc., Adviser to the IMS Capital Value Fund, which was filed as an Exhibit to
Registrant's Post-Effective Amendment No. 2, is hereby incorporated by
reference.
(vii) Copy of Registrant's Management
Agreement with Commonwealth
Advisors, Inc., Adviser to Florida
Street Bond Fund and Florida Street
Growth Fund, which was filed as an
Exhibit to Registrant's
Post-Effective Amendment No. 8, is
hereby incorporated by reference.
<PAGE>
(viii) Copy of Registrant's Management
Agreement with Corbin & Company,
Adviser to Corbin Small-Cap Fund,
which was filed as an Exhibit to
Registrant's Post-Effective
Amendment No. 8, is hereby
incorporated by reference.
(ix) Copy of Registrant's proposed
Management Agreement with Vuong
Asset Management Company, LLC,
Adviser to MAI Enhanced Index Fund,
MAI Growth & Income Fund, MAI
Aggressive Growth Fund, MAI
High-Yield Income Fund, MAI Capital
Appreciation Fund and MAI Global
Equity Fund (the "MAI Family of
Funds"), which was filed as an
an Exhibit to Registrant's
Post-Effective Amendment No. 8, is
hereby incorporated by reference.
(x) Copy of Registrant's proposed
Management Agreement with CWH
Associates, Inc., Advisor to
Worthington Theme Fund, which was
filed as an Exhibit to Registrant's
Post-Effective Amendment No. 10, is
hereby incorporated by reference.
(xi) Copy of Registrant's proposed
Management Agreement with Burroughs
& Hutchinson, Inc. Advisor to the
Marathon Value Fund which was filed
as an exhibit to Registrant's Post-
Effective Amendment No. 12 is hereby
incorporated by reference.
(xii) Copy of Registrant's proposed
Management Agreement with The
Jumper Group, Inc., Asciser to the
Jumper Strategic Reserve Fund.
(6) (i) Copy of Registrant's Amended and Restated
Underwriting Agreement with AmeriPrime
Financial Securities, Inc., which was filed
as an Exhibit to Registrant's Post-Effective
Amendment No. 8, is hereby incorporated by
reference.
(ii) Copy of Registrants proposed Underwriting
Agreement with AmeriPrime Financial
Securities, Inc. and Omni Financial Group,
LLC, which was filed as an Exhibit to
Registrant's Post-Effective Amendment No. 12
is hereby incorporated by reference.
(7) Bonus, Profit Sharing, Pension or Similar
Contracts for the benefit of Directors or
Officers - None.
(8) (i) Copy of Registrant's Agreement with the Custodian, Star Bank, N.A.
which was filed as an Exhibit to Registrant's Post-Effective Amendment No. 11,
is hereby incorporated by reference.
(ii) Copy of Registrant's Appendix B to
the Agreement with the Custodian,
Star Bank, N.A., which was filed as
an Exhibit to Registrant's
Post-Effective Amendment No. 8, is
hereby incorporated by reference.
<PAGE>
(9) Copy of Registrant's Agreement with the Administrator, AmeriPrime
Financial Services, Inc. which was filed as an Exhibit to Registrant's
Post-Effective Amendment No. 11, is hereby incorporated by reference.
(10) Opinion and Consent of Brown, Cummins &
Brown Co., L.P.A., which was filed as an
Exhibit to Registrant's Post-Effective
Amendment No. 9, is hereby incorporated by
reference.
(11) Consent of independent public accountants.
None
(12)Financial Statements Omitted from Item 23 - None.
(13) Copy of Letter of Initial Stockholders which was filed as an Exhibit
to Registrant's Post-Effective Amendment No. 11, is hereby incorporated by
reference.
(14) Model Plan used in Establishment of any
Retirement Plan - None.
(15) (i) Copy of Registrant's Rule 12b-1
Distribution Plan for The MAXIM
Contrarian Fund, which was filed as
an Exhibit to Registrant's
PostEffective Amendment No. 1, is
hereby incorporated by reference.
(ii) Copy of Registrant's Rule 12b-1
Service Agreement for The MAXIM
Contrarian Fund, which was filed as
an Exhibit to Registrant's
PostEffective Amendment No. 1, is
hereby incorporated by reference.
(16) Schedules for Computation of Each Performance Quotation which was
filed as an Exhibit to Registrant's Post-Effective Amendment No. 12,
is hereby, incorporated by reference.
(17) Financial Data Schedule - None.
(18) Rule 18f-3 Plan - None.
(19) (i) Power of Attorney for Registrant
and Certificate with respect
thereto, which were filed as an
Exhibit to Registrant's
PostEffective Amendment No. 5, are
hereby incorporated by reference.
(ii) Powers of Attorney for Trustees and
Officers which were filed as an
Exhibit to Registrant's
Post-Effective Amendment No. 5, are
hereby incorporated by reference.
(iii) Power of Attorney for the Treasurer
of the Trust, which was filed as an
Exhibit to Registrant's
Post-Effective Amendment No. 8, is
hereby incorporated by reference.
Item 25. Persons Controlled by or Under Common Control with the
Registrant (As of December 3, 1997)
The Carl Domino Associates, L.P., Profit Sharing Trust may be deemed to
control the Carl Domino Equity Income Fund; U.S. Trust Company of Florida, as
Trustee of the Killian Charitable Remainder Unitrust and Cheryl and Kenneth
Holeski may be deemed to control The NewCap Contrarian Fund, as a result of
their respective beneficial ownership of those Funds.
Item 26. Number of Holders of Securities (as of December 3, 1997)
- -------- --------------------------------------------------------
Title of Class Number of Record Holders
Carl Domino Equity Income Fund 83
Fountainhead Special Value Fund 61
AIT Vision U.S. Equity Portfolio 31
GLOBALT Growth Fund 65
NewCap Contrarian Fund 43
<PAGE>
IMS Capital Value Fund 445
Florida Street Bond Fund 2
Florida Street Growth Fund 1
Corbin Small-Cap Value Fund 69
MAI Enhanced Equity Benchmark Fund 0
MAI Enhanced Growth and Income Fund 0
MAI Enhanced Aggressive Growth Fund 0
MAI Enhanced Income Fund 0
MAI Enhanced Capital Appreciation Fund 0
MAI Enhanced Global Fund 0
Worthington Theme Fund 0
Marathon Value Fund 0
Jumper Strategic Reserve Fund 0
Item 27. Indemnification
(a) Article VI of the Registrant's Declaration of Trust
provides for indemnification of officers and Trustees
as follows:
Section 6.4 Indemnification of
Trustees, Officers, etc. Subject to and
except as otherwise provided in the
Securities Act of 1933, as amended, and the
1940 Act, the Trust shall indemnify each of
its Trustees and officers (including persons
who serve at the Trust's request as
directors, officers or trustees of another
organization in which the Trust has any
interest as a shareholder, creditor or
otherwise (hereinafter referred to as a
"Covered Person") against all liabilities,
including but not limited to amounts paid in
satisfaction of judgments, in compromise or
as fines and penalties, and expenses,
including reasonable accountants' and
counsel fees, incurred by any Covered Person
in connection with the defense or
disposition of any action, suit or other
proceeding, whether civil or criminal,
before any court or administrative or
legislative body, in which such Covered
Person may be or may have been involved as a
party or otherwise or with which such person
may be or may have been threatened, while in
office or thereafter, by reason of being or
having been such a Trustee or officer,
director or trustee, and except that no
Covered Person shall be indemnified against
any liability to the Trust or its
Shareholders to which such Covered Person
would otherwise be subject by reason of
willful misfeasance, bad faith, gross
negligence or reckless disregard of the
duties involved in the conduct of such
Covered Person's office.
Section 6.5 Advances of Expenses.
The Trust shall advance attorneys' fees or
other expenses incurred by a Covered Person
in defending a proceeding to the full extent
permitted by the Securities Act of 1933, as
amended, the 1940 Act, and Ohio Revised Code
Chapter 1707, as amended. In the event any
of these laws conflict with Ohio
<PAGE>
Revised Code Section 1701.13(E), as amended,
these laws, and not Ohio Revised Code
Section 1701.13(E), shall govern.
Section 6.6 Indemnification Not
Exclusive, etc. The right of indemnification
provided by this Article VI shall not be
exclusive of or affect any other rights to
which any such Covered Person may be
entitled. As used in this Article VI,
"Covered Person" shall include such person's
heirs, executors and administrators. Nothing
contained in this article shall affect any
rights to indemnification to which personnel
of the Trust, other than Trustees and
officers, and other persons may be entitled
by contract or otherwise under law, nor the
power of the Trust to purchase and maintain
liability insurance on behalf of any such
person.
The Registrant may not pay for insurance which
protects the Trustees and officers against
liabilities rising from action involving willful
misfeasance, bad faith, gross negligence or reckless
disregard of the duties involved in the conduct of
their offices.
(b) The Registrant may maintain a standard mutual fund and investment
advisory professional and directors and officers liability policy. The policy,
if maintained, would provide coverage to the Registrant, its Trustees and
officers, and could cover its Advisers, among others. Coverage under the policy
would include losses by reason of any act, error, omission, misstatement,
misleading statement, neglect or breach of duty.
(c) Insofar as indemnification for liabilities arising under the Securities
Act of 1933 may be permitted to trustees, officers and controlling persons of
the Registrant pursuant to the provisions of Ohio law and the Agreement and
Declaration of the Registrant or the By-Laws of the Registrant, or otherwise,
the Registrant has been advised that in the opinion of the Securities and
Exchange Commission such indemnification is against public policy as expressed
in the Act and is, therefore, unenforceable. In the event that a claim for
indemnification against such liabilities (other than the payment by the
Registrant of expenses incurred or paid by a trustee, officer or controlling
person of the Trust in the successful defense of any action, suit or proceeding)
is asserted by such trustee, officer or controlling person in connection with
the securities being registered, the Registrant will, unless in the opinion of
its counsel the matter has been settled by controlling precedent, submit to a
court of appropriate jurisdiction the question whether such indemnification by
it is against public policy as expressed in the Act and will be governed by the
final adjudication of such issue.
<PAGE>
Item 28. Business and Other Connections of Investment Adviser
A. Carl Domino Associates, L.P., 580 Village Boulevard,
Suite 225, West Palm Beach, Florida 33409, ("CDA"),
adviser to the Carl Domino Equity Income Fund, is a
registered investment adviser.
(1) CDA has engaged in no other business during
the past two fiscal years.
(2) The following list sets forth other
substantial business activities of the
partners and officers of CDA during the past
two years.
(a) Penn Independent Corp., a partner in
CDA, is an insurance holding company
that operates a premium finance
company, a surplus lines insurance
company and a wholesale insurance
agency.
(b) James E. Heerin, Jr., an officer of
CDA, is vice president and general
counsel of Penn Independent Corp.
and an officer and director of
Shrimp Culture II, Inc., both at 420
South York Road, Hatboro, PA 19040.
Shrimp Culture II, Inc. raises and
sells shrimp.
(c) Lawrence Katz, a partner in CDA, is
an orthopedic surgeon in private
practice.
(d) Saltzman Partners, a partner in CDA,
is a limited partnership that
invests in companies and businesses.
(e) Cango Inversiones, SA, a partner in
CDA, is a foreign business entity
that invests in U.S. companies and
businesses.
B. Jenswold, King & Associates, Inc., 1980 Post Oak
Boulevard, Suite 2400, Houston, Texas 77056-3898
("JKA"), adviser to the Fountainhead Special Value
Fund, is a registered investment adviser.
(1) JKA has engaged in no other business during
the past two fiscal years.
(2) The following list sets forth other
substantial business activities of the
directors and officers of JKA during the
past two years.
(a)John Servis, a director of JKA, is a licensed
real estate broker.
C. Advanced Investment Technology, Inc., 311 Park Place
Boulevard, Suite 250, Clearwater, Florida 34619
("AIT"), adviser to AIT Vision U.S. Equity Portfolio,
is a registered investment adviser.
<PAGE>
(1) AIT has engaged in no other business during
the past two fiscal years.
(2) The following list sets forth other
substantial business activities of the
directors and officers of AIT during the
past two fiscal years.
(a) Dean S. Barr, director and the CEO
of AIT, was the managing director of
LBS Capital Management, Inc., 311
Park Place Blvd., Clearwater,
Florida from 1989-1996.
(b) Nicholas Lopardo, a dirstor of AIT,
is the CEO of State Street Global
Advisors, Boston, Massachusetts.
(c) Bryan Stypul, CEO Treasurer of AIT, Comptroller for Terra Comm
Communications Clearwater, Florida in 1996, and prior to that, the CEO of Beacon
Advisors, Treasure Island, Florida.
(d) Raymond L. Killian, a director of AIT
is the Chairman of the Board of
Investment Technology Group, Inc.
900 3rd Avenue, New York New York.
(e) Marc Simmons, a director of
AIT is a principal of State Street
Global Advisors.
(e) David C. Cushing, a director of AIT
and a registered representative of
Investment Technology Group, Inc.
(f) Alan Brown, a director of AIT is the
CIO of State Street Global Advisors.
(g) John Snow, a director of AIT, is the
managing director of State Street
Global Advisors. Prior to 1997, he
was President of NatWest Investment
Advisors, Boston, Massachusetts.
D. GLOBALT, Inc., 3060 Peachtree Road, N.W., One
Buckhead Plaza, Suite 225, Atlanta, Georgia 30305
("GLOBALT"), adviser to GLOBALT Growth Fund, is a
registered investment adviser.
(1) GLOBALT has engaged in no other business
during the past two fiscal years.
(2) The following list sets forth other
substantial business activities of the
officers and directors of GLOBALT during the
past two years.
(a) Gregory S. Paulette, an officer of
GLOBALT, is the president of GLOBALT
Capital Management, a division of
GLOBALT.
E. Newport Investment Advisors, Inc., 20600 Chagrin
Boulevard, Suite 1020, Shaker Heights, Ohio 44122
("Newport"), adviser to The MAXIM Contrarian Fund, is
a registered investment adviser.
<PAGE>
(1) Newport has engaged in no other business
during the past two fiscal years.
(2) The following list sets forth other
substantial business activities of the
officers and directors of Newport during the
past two years.
(a) Kenneth Holeski, president of Newport, is the vice president of Newport
Evaluation Services, Inc., a fiduciary consulting business at 20600 Chagrin
Boulevard, Shaker Heights, Ohio 44122, and a registered representative of WRP
Investments, Inc., 4407 Belmont Avenue, Youngstown, Ohio 44505, a registered
broker/dealer.
(b) Donn M. Goodman, vice president of Newport, is the president of Newport
Evaluation Services, Inc.
F. IMS Capital Management, Inc., 10159 S.E. Sunnyside
Road, Suite 330, Portland, Oregon 97015, ("IMS"),
Adviser to the IMS Capital Value Fund, is a
registered investment adviser.
(1) IMS has engaged in no other business during
the past two fiscal years.
(2) The following list sets forth other
substantial business activities of the
directors and officers of IMS during the
past two years - None.
G. CommonWealth Advisors, Inc., 929 Government Street,
Baton Rouge, Louisiana 70802, ("CommonWealth"),
Adviser to the Florida Street Bond Fund and the
Florida Street Growth Fund, is a registered
investment adviser.
(1) CommonWealth has engaged in no other
business during the past two fiscal years.
(2) The following list sets forth other
substantial business activities of the
directors and officers of CommonWealth
during the past two years.
(a) Walter A. Morales, President/Chief Investment Officer of CommonWealth
was the Director of an insurance/broadcasting corporation, Guaranty Corporation,
929 Government Street, Baton Rouge, Louisiana 70802 from August 1994 to February
1996. From September 1994 through the present, a registered representative of a
Broker/Dealer company, Securities Service Network, 2225 Peters Road, Knoxville,
Tennessee 37923. Beginning August 1995 through the present, an instructor at the
University of Southwestern Louisiana in Lafayette, Louisiana.
<PAGE>
H. Corbin & Company, 1320 S. University Drive, Suite
406, Fort Worth, Texas 76107, ("Corbin"), Adviser to
the Corbin Small-Cap Value Fund, is a registered
investment adviser.
(1) Corbin has engaged in no other business
during the past two fiscal years.
(2) The following list sets forth other
substantial business activities of the
directors and officers of Corbin during the
past two years - None.
I. Vuong Asset Management Company, LLC, 6575 West Loop
South, Suite 110, Houston, Texas 77401, ("VAMCO"),
Adviser to the MAI Family of Funds, is a registered
investment adviser.
(1) VAMCO has engaged in no other business during the past two
fiscal years.
(2) The following list sets forth substantial business activities
of the directors and officers of VAMCO during the past two
years.
(a) Qui Tu Vuong, the Chief Investment Officer and head of Equity Asset
Management of VAMCO, is the Chief Executive Officer of Vuong & Co., LLC, a
holding company at 6575 West Loop South #110, Bellaire, Texas 77401; and Sales
Manager/Equities Regulation Representative of Omni Financial Group, LLC, a
securities brokerage company at 6575 West Loop South #110, Bellaire, Texas
77401; and President of Oishiicorp, Inc., an investment advising corporation at
6575 West Loop South #110, Bellaire, Texas 77401; and Managing General Partner
of Sigma Delta Capital Appreciation Funds, LP, an investment company at 6575
West Loop South #110, Bellaire, Texas 77401; and President of Premier Capital
Management and Consulting Group, Inc., a financial consulting corporation at
6575 West Loop South #170, Bellaire, Texas 77401; and from August, 1992 through
February, 1996, he was a registered representative of Securities America, Inc.,
a securities brokerage corporation at 6575 West Loop South #170, Bellaire, Texas
77401.
(b) Quyen Ngoc Vuong, President, Chairman and Chief
Financial Officer of VAMCO, is the Manager of Vuong &
Company, LLC, and Manager of Omni Financial Group,
LLC.
(c) Canh Viet Le, Manager of VAMCO, is the Manager of
Vuong and Company, LLC, and was Co-Founder and Chief
Financial Officer of Tribe Computer Works, a
manufacturing network in Alameda, California from
April, 1990 through January, 1996.
<PAGE>
J. CWH Associates, Inc., 200 Park Avenue, Suite 3900, New York,
New York 10166, ("CWH"), Advisor to the Worthington Theme
Fund, is a registered investment Advisor.
(1) CWH has engaged in no other business during the past
two fiscal years.
(2) The following list sets forth other substantial
business activities of the directors and officers of
CWH during the past two years.
Andrew M. Abrams, the Chief Operating Officer of CWH,
is a General Partner of Abrams Investment Partners,
L.P., an investment limited partnership at 200 Park
Avenue, Suite 3900, New York, New York 10166.
K. Burroughs & Hutchinson, Inc. 702 West Idaho Street, Suite 810, Boise,
Idaho ("B&H"), adviser to Marathon Value Fund, is a registered investment
adviser.
(1) B&H has engaged in no other business during the past
two fiscal years.
(2) The following list sets forth other substantial
business activities of the directors and officers of
B&H during the past two years.
L. The Jumper Group Inc, 1 Union Square, Suite 505, Chattanooga, Tennessee
37402, ("Jumper"), Adviser to the Jumper Strategic Reserve Fund, is a
registered investment adviser.
(1) Jumper has engaged in no other business during the
past two fiscal years.
(2) The following list sets forth other substantial
business activities of the directors and officers of
Jumper during the past two years - None
Item 29. Principal Underwriters
A. AmeriPrime Financial Securities, Inc., is the
Registrant's principal underwriter. Kenneth D.
Trumpfheller, 1793 Kingswood Drive, Suite 200,
Southlake, Texas 76092, is the President, Secretary
and Treasurer of the underwriter and the President
and a Trustee of the Registrant.
B. Omni Financial Group, LLC ("OMNI") acts as co- distributor, along with
AmeriPrime Financial Securities, Inc., of the MAI Family of Funds. Qui T. Vuong,
Quyen N. Vuong and Diep N. Vuong, each of whose principal business address is
6575 West Loop South, Suite 125, Bellaire, Texas 77401, are the managers of
OMNI, and they hold no offices or position with the Registrant.
Item 30. Location of Accounts and Records
Accounts, books and other documents required to be maintained
by Section 31(a) of the Investment Company Act of 1940 and the
Rules promulgated thereunder will be maintained by the
Registrant at 1793 Kingswood Drive, Suite 200, Southlake,
Texas 76092 and/or by the Registrant's Custodian, Star Bank,
N.A., 425 Walnut Street, Cincinnati, Ohio 45202, and/or
transfer and shareholder service agent, American Data
Services, Inc., Hauppauge Corporate Center, 150 Motor Parkway,
Hauppauge, New York 11760.
Item 31. Management Services Not Discussed in Parts A or B
None.
Item 32. Undertakings
(a) Not Applicable.
(b) The Registrant hereby undertakes to furnish each
person to whom a prospectus is delivered with a copy
of the
<PAGE>
Registrant's latest applicable annual report to
shareholders, upon request and without charge.
(c) The Registrant hereby undertakes to file a Post-
Effective Amendment, using financial statements which
need not be certified, within four to six months from
the effective date of the MAI Family of Funds
registration.
(d) The Registrant hereby undertakes to file a
PostEffective Amendment, using financial statements
which need not be certified, within four to six
months from the effective date of the Worthington
Theme Fund registration.
(e) The Registrant hereby undertakes to file a Post
Effective Amendment, using financial statements which
need not be certficied, within four to six months
from the effective date of the Jumper Strategic
Reserve Fund.
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities Act of 1933 and the
Investment Company Act of 1940, the Registrant has duly caused this Registration
Statement to be signed on its behalf by the undersigned, thereunto duly
authorized, in the City of Cincinnati, State of Ohio, on the 29th day of
January, 1998.
AmeriPrime Funds
By:
Donald S. Mendelsohn,
Attorney-in-Fact
Pursuant to the requirements of the Securities Act of 1933, this
Registration Statement has been signed below by the following persons in the
capacities and on the dates indicated.
Kenneth D. Trumpfheller,
President and Trustee By:_________________________
Donald S. Mendelsohn,
Julie A. Feleo, Treasurer Attorney-in-Fact
Steve L. Cobb, Trustee January 29, 1998
Gary E. Hippenstiel, Trustee
<PAGE>
EXHIBIT INDEX
EXHIBIT
1. Proposed Management Agreement with
The Jumper Group, Inc............................................EX-99.2G
<PAGE>
MANAGEMENT AGREEMENT
TO: The Jumper Group, Inc.
One Union Square, Suite 505
Chattanoogae, TN 37402
Dear Sirs:
AmeriPrime Funds (the "Trust") herewith confirms our agreement with
you.
The Trust has been organized to engage in the business of an investment
company. The Trust currently offers several series of shares to investors, one
of which is the Jumper Stategic Reserve Fund (the "Fund").
You have been selected to act as the sole investment adviser of the
Fund and to provide certain other services, as more fully set forth below, and
you are willing to act as such investment adviser and to perform such services
under the terms and conditions hereinafter set forth. Accordingly, the Trust
agrees with you as follows effective upon the date of the execution of this
Agreement.
1. ADVISORY SERVICES
You will regularly provide the Fund with such investment
advice as you in your discretion deem advisable and will furnish a continuous
investment program for the Fund consistent with the Fund's investment objectives
and policies. You will determine the securities to be purchased for the Fund,
the portfolio securities to be held or sold by the Fund and the portion of the
Fund's assets to be held uninvested, subject always to the Fund's investment
objectives, policies and restrictions, as each of the same shall be from time to
time in effect, and subject further to such policies and instructions as the
Board may from time to time establish. You will advise and assist the officers
of the Trust in taking such steps as are necessary or appropriate to carry out
the decisions of the Board and the appropriate committees of the Board regarding
the conduct of the business of the Fund.
2. ALLOCATION OF CHARGES AND EXPENSES
You will pay all operating expenses of the Fund, including the
compensation and expenses of any employees of the Fund and of any other persons
rendering any services to the Fund; clerical and shareholder service staff
salaries; office space and other office expenses; fees and expenses incurred by
the Fund in connection with membership in investment company organizations;
legal, auditing and accounting expenses; expenses of registering shares under
federal and state securities laws, excluding expenses incurred by the Fund in
connection with the organization and initial registration of shares of the Fund;
insurance expenses; fees and
ASA02E15-012198-2
<PAGE>
expenses of the custodian, transfer agent, dividend disbursing agent,
shareholder service agent, plan agent, administrator, accounting and pricing
services agent and underwriter of the Fund; expenses, including clerical
expenses, of issue, sale, redemption or repurchase of shares of the Fund; the
cost of preparing and distributing reports and notices to shareholders, the cost
of printing or preparing prospectuses and statements of additional information
for delivery to the Fund's current and prospective shareholders; the cost of
printing or preparing stock certificates or any other documents, statements or
reports to shareholders; expenses of shareholders' meetings and proxy
solicitations; advertising, promotion and other expenses incurred directly or
indirectly in connection with the sale or distribution of the Fund's shares; and
all other operating expenses not specifically assumed by the Fund.
The Fund will pay all brokerage fees and commissions, taxes,
interest, fees and expenses of the non-interested person trustees and such
extraordinary or non-recurring expenses as may arise, including organizational
expenses, and litigation to which the Fund may be a party and indemnification of
the Trust's trustees and officers with respect thereto. You may obtain
reimbursement from the Fund, at such time or times as you may determine in your
sole discretion, for any of the expenses advanced by you, which the Fund is
obligated to pay, and such reimbursement shall not be considered to be part of
your compensation pursuant to this Agreement.
3. COMPENSATION OF THE ADVISER
For all of the services to be rendered and payments to be made
as provided in this Agreement, as of the last business day of each month, the
Fund will pay you a fee at the annual rate of 0.75% of the average value of its
daily net assets.
The average value of the daily net assets of the Fund shall be
determined pursuant to the applicable provisions of the Declaration of Trust of
the Trust or a resolution of the Board, if required. If, pursuant to such
provisions, the determination of net asset value of the Fund is suspended for
any particular business day, then for the purposes of this paragraph, the value
of the net assets of the Fund as last determined shall be deemed to be the value
of the net assets as of the close of the business day, or as of such other time
as the value of the Fund's net assets may lawfully be determined, on that day.
If the determination of the net asset value of the Fund has been suspended for a
period including such month, your compensation payable at the end of such month
shall be computed on the basis of the value of the net assets of the Fund as
last determined (whether during or prior to such month).
<PAGE>
4. EXECUTION OF PURCHASE AND SALE ORDERS
In connection with purchases or sales of portfolio securities
for the account of the Fund, it is understood that you will arrange for the
placing of all orders for the purchase and sale of portfolio securities for the
account with brokers or dealers selected by you, subject to review of this
selection by the Board from time to time. You will be responsible for the
negotiation and the allocation of principal business and portfolio brokerage. In
the selection of such brokers or dealers and the placing of such orders, you are
directed at all times to seek for the Fund the best qualitative execution,
taking into account such factors as price (including the applicable brokerage
commission or dealer spread), the execution capability, financial responsibility
and responsiveness of the broker or dealer and the brokerage and research
services provided by the broker or dealer.
You should generally seek favorable prices and commission
rates that are reasonable in relation to the benefits received. In seeking best
qualitative execution, you are authorized to select brokers or dealers who also
provide brokerage and research services (as those terms are defined in Section
28(e) of the Securities Exchange Act of 1934) to the Fund and/or the other
accounts over which you exercise investment discretion. You are authorized to
pay a broker or dealer who provides such brokerage and research services a
commission for executing a Fund portfolio transaction which is in excess of the
amount of commission another broker or dealer would have charged for effecting
that transaction if you determine in good faith that the amount of the
commission is reasonable in relation to the value of the brokerage and research
services provided by the executing broker or dealer. The determination may be
viewed in terms of either a particular transaction or your overall
responsibilities with respect to the Fund and to accounts over which you
exercise investment discretion. The Fund and you understand and acknowledge
that, although the information may be useful to the Fund and you, it is not
possible to place a dollar value on such information. The Board shall
periodically review the commissions paid by the Fund to determine if the
commissions paid over representative periods of time were reasonable in relation
to the benefits to the Fund.
Consistent with the Rules of Fair Practice of the National
Association of Securities Dealers, Inc., and subject to seeking best qualitative
execution as described above, you may give consideration to sales of shares of
the Fund as a factor in the selection of brokers and dealers to execute Fund
portfolio transactions.
Subject to the provisions of the Investment Company Act of
1940, as amended, and other applicable law, you, any of your affiliates or any
affiliates of your affiliates may retain compensation in connection with
effecting the Fund's portfolio transactions, including transactions effected
through others. If any occasion should arise in which you give any advice to
clients of yours concerning the shares of the Fund, you will act solely as
investment counsel for such client and not in any way on behalf of the Fund.
Your services to the Fund pursuant to this Agreement are not to be deemed to be
exclusive and it is understood that you may render investment advice, management
and other services to others, including other registered investment companies.
5. LIMITATION OF LIABILITY OF ADVISER
You may rely on information reasonably believed by you to be
accurate and reliable. Except as may otherwise be required by the Investment
Company Act of 1940 or the rules thereunder, neither you nor your shareholders,
officers, directors, employees, agents,
<PAGE>
control persons or affiliates of any thereof shall be subject to any liability
for, or any damages, expenses or losses incurred by the Trust in connection
with, any error of judgment, mistake of law, any act or omission connected with
or arising out of any services rendered under, or payments made pursuant to,
this Agreement or any other matter to which this Agreement relates, except by
reason of willful misfeasance, bad faith or gross negligence on the part of any
such persons in the performance of your duties under this Agreement, or by
reason of reckless disregard by any of such persons of your obligations and
duties under this Agreement.
Any person, even though also a director, officer, employee,
shareholder or agent of you, who may be or become an officer, director, trustee,
employee or agent of the Trust, shall be deemed, when rendering services to the
Trust or acting on any business of the Trust (other than services or business in
connection with your duties hereunder), to be rendering such services to or
acting solely for the Trust and not as a director, officer, employee,
shareholder or agent of you, or one under your control or direction, even though
paid by you.
6. DURATION AND TERMINATION OF THIS AGREEMENT
This Agreement shall take effect on the date of its execution,
and shall remain in force for a period of two (2) years from the date of its
execution, and from year to year thereafter, subject to annual approval by (i)
the Board or (ii) a vote of a majority (as defined in the Investment Company Act
of 1940) of the outstanding voting securities of the Fund, provided that in
either event continuance is also approved by a majority of the trustees who are
not "interested persons," as defined in the Investment Company Act of 1940, of
you or the Trust, by a vote cast in person at a meeting called for the purpose
of voting such approval.
If the shareholders of the Fund fail to approve the Agreement
in the manner set forth above, upon request of the Board, you will continue to
serve or act in such capacity for the Fund for the period of time pending
required approval of the Agreement, of a new agreement with you or a different
adviser or other definitive action; provided that the compensation to be paid by
the Fund to you for your services to and payments on behalf of the Fund will be
equal to the lesser of your actual costs incurred in furnishing such services
and payments or the amount you would have received under this Agreement for
furnishing such services and payments.
This Agreement may, on sixty days written notice, be
terminated with respect to the Fund, at any time without the payment of any
penalty, by the Board, by a vote of a majority of the outstanding voting
securities of the Fund, or by you. This Agreement shall automatically terminate
in the event of its assignment.
7. USE OF NAME
The Trust and you acknowledge that all rights to the name
"Jumper" belongs to you, and that the Trust is being granted a limited license
to use such words in its Fund name or in any class name. In the event you cease
to be the adviser to the Fund, the Trust's right to the use of the name "Jumper"
shall automatically cease on the ninetieth day following the termination of this
Agreement. The right to the name may also be withdrawn by you during the term of
this Agreement upon ninety (90) days' written notice by you to the Trust.
Nothing contained herein shall impair or diminish in any respect, your right to
use the name "Jumper" in the name of, or in connection with, any other business
enterprises with which you are or may become associated. There is no charge to
the Trust for the right to use this name.
<PAGE>
8. AMENDMENT OF THIS AGREEMENT
No provision of this Agreement may be changed, waived,
discharged or terminated orally, and no amendment of this Agreement shall be
effective until approved by the Board, including a majority of the trustees who
are not interested persons of you or of the Trust, cast in person at a meeting
called for the purpose of voting on such approval, and (if required under
current interpretations of the Act by the Securities and Exchange Commission) by
vote of the holders of a majority of the outstanding voting securities of the
series to which the amendment relates.
9. LIMITATION OF LIABILITY TO TRUST PROPERTY
The term "AmeriPrime Funds" means and refers to the Trustees
from time to time serving under the Trust's Declaration of Trust as the same may
subsequently thereto have been, or subsequently hereto be, amended. It is
expressly agreed that the obligations of the Trust hereunder shall not be
binding upon any of the trustees, shareholders, nominees, officers, agents or
employees of the Trust personally, but bind only the trust property of the
Trust, as provided in the Declaration of Trust of the Trust. The execution and
delivery of this Agreement have been authorized by the trustees and shareholders
of the Trust and signed by officers of the Trust, acting as such, and neither
such authorization by such trustees and shareholders nor such execution and
delivery by such officers shall be deemed to have been made by any of them
individually or to impose any liability on any of them personally, but shall
bind only the trust property of the Trust as provided in its Declaration of
Trust. A copy of the Agreement and Declaration of Trust of the Trust is on file
with the Secretary of the State of Ohio.
10. SEVERABILITY
In the event any provision of this Agreement is determined to
be void or unenforceable, such determination shall not affect the remainder of
this Agreement, which shall continue to be in force.
11. QUESTIONS OF INTERPRETATION
(a) This Agreement shall be governed by the laws of the State
of Ohio.
(b) Any question of interpretation of any term or provision of
this Agreement having a counterpart in or otherwise derived from a term or
provision of the Investment Company Act of 1940, as amended (the "Act") shall be
resolved by reference to such term or provision of the Act and to interpretation
thereof, if any, by the United States courts or in the absence of any
controlling decision of any such court, by rules, regulations or orders of the
Securities and Exchange Commission issued pursuant to said Act. In addition,
where the effect of a requirement of the Act, reflected in any provision of this
Agreement is revised by rule, regulation or order of the Securities and Exchange
Commission, such provision shall be deemed to incorporate the effect of such
rule, regulation or order.
12. NOTICES
Any notices under this Agreement shall be in writing,
addressed and delivered or mailed postage paid to the other party at such
address as such other party may designate for
<PAGE>
the receipt of such notice. Until further notice to the other party, it is
agreed that the address of the Trust is 1793 Kingswood Drive, Suite 200,
Southlake, Texas 76092, and your address for this purpose shall be One Union
Square, Suite 505, Chattanoogae, TN 37402.
13. COUNTERPARTS
This Agreement may be executed in one or more counterparts,
each of which shall be deemed an original, but all of which together shall
constitute one and the same instrument.
14. BINDING EFFECT
Each of the undersigned expressly warrants and represents that
he has the full power and authority to sign this Agreement on behalf of the
party indicated, and that his signature will operate to bind the party indicated
to the foregoing terms.
15. CAPTIONS
The captions in this Agreement are included for convenience of
reference only and in no way define or delimit any of the provisions hereof or
otherwise affect their construction or effect.
If you are in agreement with the foregoing, please sign the
form of acceptance on the accompanying counterpart of this letter and return
such counterpart to the Trust, whereupon this letter shall become a binding
contract upon the date thereof.
Yours very truly,
ATTEST: AmeriPrime Funds
By
Name/Title:___________________ Kenneth D. Trumpfheller, President
Dated: ___________, 1998
ACCEPTANCE
The foregoing Agreement is hereby accepted.
ATTEST: The Jumper Group, Inc.
By
Name/Title:___________________ Name/Title:____________________
Dated: _____________, 1978
<PAGE>
