Dear Shareholders:
We are pleased to present the investment results for the Cornerstone MVP Fund.
Since our inception six months ago on December 31, 1998, the Fund has grown 7.3%
from an initial NAV of $10.00 to $10.73 on June 30, 1999. The S&P 500 Index was
up 12.4% and the Russell Mid-Cap Index was up 9.6% for the same six month
period. Although the Fund's inception date is December 31, 1998, it was
originally funded with just $1,000 in cash. Significant funding did not take
place until March 9, 1999 and on that date the Fund commenced investing in U.S.
equities. Comparing our first fully invested quarter, March 31st - June 30,
1999, the Fund returned 9.0% while the S&P 500 Index was up 7.0% for the same
period. Although not being invested in the first quarter of 1999 hurt us on a
year-to-date comparison basis, our aim is to outperform for the 2nd, 3rd & 4th
quarters of 1999 and thus for 1999 as a whole.
Returns for the Period ended June 30, 1999
Fund / Index Six Months Since Inception - December 31, 1998
------------ ---------- -----------------------------------
Cornerstone MVP Fund 7.30% 7.30%
S&P 500 12.38% 12.38%
Russell Mid-Cap 9.55% 9.55%
Chart - Growth of $10,000
DATE Cornerstone MVP S&P 500 Russell Mid-Cap
12-31-98 $10,000.00 $10,000.00 $10,000.00
01-31-99 $10,010.00 $10,418.16 $ 9,976.23
02-28-99 $10,020.00 $10,094.38 $ 9,627.62
03-31-99 $ 9,840.00 $10,498.24 $ 9,914.81
04-30-99 $10,430.00 $10,904.79 $10,640.14
05-31-99 $10,310.00 $10,647.29 $10,596.58
06-30-99 $10,730.00 $11,238.18 $10,955.26
The chart shows the value of a hypothetical initial investment of $10,000 in the
Fund, the S&P 500 Index and the Russell Mid-Cap Index on December 31, 1998 and
held through June 30, 1999. The S&P 500 Index and the Russell Mid-Cap Index are
widely recognized indices of common stock prices. Performance figures include
the change in value of the stocks in the indices, reinvestment of dividends and
are not annualized. The index returns do not reflect expenses, which have been
deducted from the Fund's returns. THE FUND'S RETURN REPRESENTS PAST PERFORMANCE
AND IS NOT PREDICTIVE OF FUTURE RESULTS.
<PAGE>
The bull market that started in early 1995 continued through the first half of
1999. After the temporary setback in late 1998 due largely to Russian and Asian
currency devaluations, investors returned to U.S. stocks with a bias toward the
large-cap growth stocks. Although stocks have risen dramatically from the recent
low in October, 1998, we note that the 30-year U.S. Treasury rate has risen from
a low of 4.70% on October 5, 1998 to 5.98% on June 30, 1999. This significant
rise in interest rates will make continued price multiple expansion (and
therefore stock price appreciation) difficult to sustain in the near term.
Our investment philosophy as applied to the Fund has been very favorable. The
MVP approach leads us to find growing companies (Performance), trading at
reasonable prices (Valuation), that are moving up in price (Momentum). As a
result, we believe our portfolio has less risk than the overall market with
valuation levels at only 75% - 80% of the market. We are confident that our
conservative portfolio should perform well in this rising interest rate
environment relative to the S&P 500 Index.
Cornerstone Investment Management, LLC continues to uncover attractive
investments for the MVP Fund through diligent research and analysis. Although
many of the largest companies' stocks are overvalued by our measures, we
continue to find many large-cap and mid-cap stocks that fit our investment
criteria. We strive to outperform both large-cap and mid-cap stock indices
including the Russell 200 Large-Cap Index and the Russell 800 Mid-Cap Index.
Combined, these two indices comprise the Russell 1000. Because of the very close
correlation between the Russell 200 Large-Cap Index and the S&P 500 Index, we
have included the more widely followed S&P 500 Index for comparison purposes.
The fund continues to be a large-cap value fund ($10 billion market cap. or
greater) on a weighted average basis. Our aim is to continue to be a tax
efficient, core capital Fund, appropriate for the "cornerstone" of our
investors' portfolios. As a small fund, we welcome shareholder inquiries, and
are working hard to meet your expectations.
Sincerely,
Christopher S. Ryan, CFA
<PAGE>
Cornerstone MVP Fund
Schedule of Investments - June 30, 1999
<TABLE>
<S> <C> <C>
Common Stocks - 94.1% Shares Value
Advertising - 3.3%
Acxiom Corp. (a) 18,000 $ 448,875
-------------
Aerospace & Defense - 3.6%
Boeing Co. 11,000 486,063
-------------
Banks - 3.4%
Bank One Corp. 3,700 220,381
Citigroup, Inc. 5,096 242,036
-------------
462,417
-------------
Broadcasting - 2.0%
Clear Channel Communications, Inc. (a) 4,000 275,750
-------------
Communications Equipment - 2.5%
Lucent Technologies, Inc. 5,115 344,943
-------------
Computer Services & Software - 19.2%
Computer Sciences Corp. (a) 7,900 546,581
First Data Corp. 15,000 734,062
Gerber Scientific, Inc. 19,400 428,013
Oracle Corp. (a) 12,750 473,344
Synopsys, Inc. (a) 7,600 419,425
-------------
2,601,425
-------------
Computers & Office Equipment - 3.5%
Gateway, Inc. (a) 4,400 259,600
Seagate Technology, Inc. (a) 8,600 220,375
-------------
479,975
-------------
Credit & Other Finance - 1.8%
Associates First Capital Corp. - Class A 5,450 241,503
-------------
Department Stores - 1.8%
Dayton Hudson Corp. 3,700 240,500
-------------
Diversified Healthcare - 4.0%
Abbott Laboratories, Inc. 6,000 273,000
Johnson & Johnson, Inc. 2,800 274,400
-------------
547,400
-------------
Electrical Equipment - 4.7%
American Power Conversion, Inc. (a) 32,000 644,000
-------------
Energy Services - 7.4%
Halliburton Co. 11,100 502,275
Weatherford International Corp. (a) 13,550 496,269
-------------
998,544
-------------
Household Products - 2.8%
Kimberly-Clark Group 6,600 376,200
-------------
See accompanying notes which are an integral part of the financial statements
<PAGE>
Cornerstone MVP Fund
Schedule of Investments - June 30, 1999 - continued
Common Stocks - continued Shares Value
Industrial Machinery & Equipment - 7.1%
Caterpillar, Inc. 7,500 $ 450,000
Ingersoll-Rand Co. 8,000 517,000
-------------
967,000
-------------
Insurance - 2.9%
Aetna, Inc. 4,500 402,469
-------------
Lodging & Gaming - 1.9%
Marriott International, Inc. - Class A 7,000 261,625
-------------
Manufacturers - Diversified - 3.2%
Minnesota Mining & Manufacturing Co. 5,000 434,687
-------------
Natural Gas - 2.0%
Consolidated Natural Gas Co. 4,500 273,375
-------------
Oil & Gas - 3.7%
Exxon Corp. 6,600 509,025
-------------
Publishing - 3.2%
Gannett Co., Inc. 6,000 428,250
-------------
Restaurants - 2.2%
Starbucks Corp. (a) 8,000 300,500
-------------
Telephone Services - 7.9%
AT&T Corp. 6,900 385,106
Cable & Wireless ADS 10,000 396,250
SBC Communications, Inc. 5,000 290,000
-------------
1,071,356
-------------
TOTAL COMMON STOCKS (Cost $11,628,908) 12,795,882
-------------
Principal
Amount Value
Money Market Securities - 5.9%
Firstar Treasury Fund, 3.98% (b) (Cost $799,928) $799,928 799,928
-------------
TOTAL INVESTMENTS - 100.0% (Cost $12,428,836) 13,595,810
-------------
Other assets less liabilities - 0.0% (2,571)
-------------
TOTAL NET ASSETS - 100.0% $ 13,593,239
=============
</TABLE>
(a) Non-income producing
(b) Variable rate security; the coupon rate shown represents the rate at
June 30, 1999
See accompanying notes which are an integral part of the financial statements
<PAGE>
Cornerstone MVP Fund June 30, 1999
Statement of Assets & Liabilities
Assets
Investment in securities (cost $12,428,836) $ 13,595,810
Dividends receivable 7,639
Interest receivable 1,842
-------------
Total assets 13,605,291
Liabilities
Accrued investment advisory fee payable $ 12,052
------------
Total liabilities 12,052
-------------
Net Assets $ 13,593,239
=============
Net Assets consist of:
Paid in capital $ 12,723,228
Accumulated net realized gain (loss) on investment (296,963)
Net unrealized appreciation on investments 1,166,974
-------------
Net Assets, for 1,266,500 shares $ 13,593,239
=============
Net Asset Value
Net Assets
Offering price and redemption price per share
($13,593,239/1,266,500) $ 10.73
=============
See accompanying notes which are an integral part of the financial statements
<PAGE>
Cornerstone MVP Fund
Statement of Operations for the period December 31, 1998
(Commencement of Operations) to June 30, 1999
Investment Income
Dividend income $ 31,671
Interest income 10,130
----------
Total Income 41,801
Expenses
Investment advisory fee $ 43,651
Trustees' fees 1,084
------------
Total expenses before reimbursement 44,735
Reimbursed expenses (1,084)
------------
Total operating expenses 43,651
-----------
Net Investment Income (Loss) (1,850)
-----------
Realized & Unrealized Gain (Loss)
Net realized gain (loss) on investment securities (296,963)
Change in net unrealized appreciation (depreciation)
on investment securities 1,166,974
-----------
Net gain on investment securities 870,011
-----------
Net increase in net assets resulting from operations $ 868,161
===========
See accompanying notes which are an integral part of the financial statements
<PAGE>
Cornerstone MVP Fund
Statement of Changes in Net Assets for the period December 31, 1998
(Commencement of Operations) to June 30, 1999
Increase (Decrease) in Net Assets
Operations
Net investment income (loss) $ (1,850)
Net realized gain (loss) on investment securities (296,963)
Change in net unrealized appreciation (depreciation) 1,166,974
-----------
Net increase in net assets resulting from operations 868,161
-----------
Share Transactions
Net proceeds from sale of shares 12,725,078
-----------
Net increase in net assets resulting
from share transactions 12,725,078
-----------
Total increase in net assets 13,593,239
Net Assets
Beginning of period -
-----------
End of period [including accumulated undistributed net
investment loss of $0] $13,593,239
===========
See accompanying notes which are an integral part of the financial statements
<PAGE>
Cornerstone MVP Fund
Financial Highlights for the period December 31, 1998
(Commencement of Operations) to June 30, 1999
Selected Per Share Data
Net asset value, beginning of period $ 10.00
--------------
Income from investment operations
Net investment income (loss) 0.00
Net realized and unrealized gain (loss) 0.73
--------------
--------------
Total from investment operations 0.73
--------------
Net asset value, end of period $ 10.73
==============
Total Return (b) 7.30%
Ratios and Supplemental Data
Net assets, end of period (000) $13,593
Ratio of expenses to average net assets 1.10% (a)
Ratio of expenses to average net assets
before reimbursement 1.13% (a)
Ratio of net investment income (loss) to
average net assets (0.05)% (a)
Ratio of net investment income (loss) to
average net assets before reimbursement (0.07)% (a)
Portfolio turnover rate 162.54% (a)
(a) Annualized
(b) For periods of less than a full year, total returns are not annualized.
See accompanying notes which are an integral part of the financial statements
<PAGE>
Cornerstone MVP Fund
Notes to Financial Statements
June 30, 1999
NOTE 1. ORGANIZATION
Cornerstone MVP Fund (the "Fund") was organized as a series of the
AmeriPrime Funds, an Ohio business trust (the "Trust"), on October 22, 1998 and
commenced operations on December 31, 1998. The Fund is registered under the
Investment Company Act of 1940, as amended, as a diversified open-end management
investment company. The Fund's investment objective is to provide long term
capital appreciation. The Declaration of Trust permits the Trustees to issue an
unlimited number of shares of beneficial interest of separate series without par
value.
NOTE 2. SIGNIFICANT ACCOUNTING POLICIES
The following is a summary of significant accounting policies followed by
the Fund in the preparation of its financial statements.
Securities Valuations- Securities which are traded on any exchange or on
the NASDAQ over-the-counter market are valued at the last quoted sale price.
Lacking a last sale price, a security is valued at its last bid price except
when, in the Advisor's opinion, the last bid price does not accurately reflect
the current value of the security. All other securities for which
over-the-counter market quotations are readily available are valued at their
last bid price. When market quotations are not readily available, when the
Advisor determines the last bid price does not accurately reflect the current
value or when restricted securities are being valued, such securities are valued
as determined in good faith by the Advisor, in conformity with guidelines
adopted by and subject to review of the Board of Trustees of the Trust (the
"Board").
Fixed income securities generally are valued by using market quotations,
but may be valued on the basis of prices furnished by a pricing service when the
Advisor believes such prices accurately reflect the fair market value of such
securities. A pricing service utilizes electronic data processing techniques
based on yield spreads relating to securities with similar characteristics to
determine prices for normal institutional-size trading units of debt securities
without regard to sale or bid prices. When prices are not readily available from
a pricing service, or when restricted or illiquid securities are being valued,
securities are valued at fair value as determined in good faith by the Advisor,
subject to review of the Board. Short-term investments in fixed-income
securities with maturities of less than 60 days when acquired, or which
subsequently are within 60 days of maturity, are valued by using the amortized
cost method of valuation, which the Board has determined will represent fair
value.
<PAGE>
Cornerstone MVP Fund
Notes to Financial Statements
June 30, 1999 - continued
NOTE 2. SIGNIFICANT ACCOUNTING POLICIES - continued
Federal Income Taxes- The Fund intends to qualify each year as a "regulated
investment company" under the Internal Revenue Code of 1986, as amended. By so
qualifying, the Fund will not be subject to federal income taxes to the extent
that it distributes substantially all of its net investment income and any
realized capital gains.
Dividends and Distributions- The Fund intends to distribute substantially all of
its net investment income as dividends to its shareholders on an annual basis.
The Fund intends to distribute its net long-term capital gains and its net
short-term capital gains at least once a year.
Other- The Fund follows industry practice and records security transactions on
the trade date. The specific identification method is used for determining gains
or losses for financial statements and income tax purposes. Dividend income is
recorded on the ex-dividend date and interest income is recorded on an accrual
basis. Discounts and premiums on securities purchased are amortized over the
life of the respective securities.
NOTE 3. FEES AND OTHER TRANSACTIONS WITH AFFILIATES
The Fund retains Cornerstone Investment Management, LLC (the "Advisor") to
manage the Fund's investments. The Advisor was organized as a Colorado
corporation in 1997. Christopher S. Ryan, President and Managing Partner of the
Advisor, is primarily responsible for the day-to-day management of the Fund's
portfolio.
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 commissions, taxes,
interest, fees and expenses of non-interested person trustees, and extraordinary
expenses. As compensation for its management services and agreement to pay the
Fund's expenses, the Fund is obligated to pay the Advisor a fee of 1.10% of the
average daily net assets of the Fund. It should be noted that most investment
companies pay their own operating expenses directly, while the Fund's expenses,
except those specified above, are paid by the Advisor. For the period from
December 31, 1998 (commencement of operations) through June 30, 1999, the
Advisor received a fee of $43,651 from the Fund. The Advisor has voluntarily
agreed to reimburse other expenses to the extent necessary to maintain total
operating expenses at the rate of 1.10%. For the period December 31, 1998
(commencement of operations) through June 30, 1999, the Advisor reimbursed
expenses of $1,084. There is no assurance that such reimbursement will continue
in the future.
<PAGE>
Cornerstone MVP Fund
Notes to Financial Statements
June 30, 1999 - continued
NOTE 3. FEES AND OTHER TRANSACTIONS WITH AFFILIATES - continued
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 and
personnel. For the period from December 31, 1998 (commencement of operations) to
June 30, 1999, the Administrator received fees of $12,500 from the Advisor for
administrative services provided to the Fund.
The Fund retains AmeriPrime Financial Securities, Inc. ("the Distributor")
to act as the principal distributor of the Fund's shares. There were no payments
made to the Distributor from December 31, 1998 (commencement of operations) to
June 30, 1999. Certain members of management of the Administrator and the
Distributor are also members of management of the AmeriPrime Trust.
NOTE 4. SHARE TRANSACTIONS
As of June 30, 1999, there was an unlimited number of authorized shares for
the Fund. Paid in capital at June 30, 1999 was $12,723,228.
Transactions in shares were as follows:
For the period December 31, 1998
(Commencement of Operations) to June 30, 1999
Shares Dollars
Shares sold 1,266,500 $12,725,078
========= ===========
NOTE 5. INVESTMENTS
For the period from December 31, 1998 (commencement of operations) through
June 30, 1999, purchases and sales of investment securities, other than
short-term investments, aggregated $17,606,157 and $5,680,286, respectively. As
of June 30, 1999, the gross unrealized appreciation for all securities totaled
$1,446,542 and the gross unrealized depreciation for all securities totaled
$279,568 for a net unrealized appreciation of $1,166,974. The aggregate cost of
securities for federal income tax purposes at June 30, 1999 was $12,428,836.
<PAGE>
Cornerstone MVP Fund
Notes to Financial Statements
June 30, 1999 - continued
NOTE 6. ESTIMATES
Preparation of financial statements in accordance with generally accepted
accounting principles requires management to make estimates and assumptions that
affect the reported amounts of assets and liabilities and the reported amounts
of revenues and expenses during the reporting period. Actual results could
differ from those estimates.
NOTE 7. RELATED PARTY TRANSACTIONS
The Advisor is not a registered broker-dealer of securities and thus does
not receive commissions on trades made on behalf of the Fund. The beneficial
ownership, either directly or indirectly, of more than 25% of the voting
securities of a Fund creates a presumption of control of the Fund, under Section
2(a)(9) of the Investment Company Act of 1940. As of June 30, 1999, Charles
Schwab & Co. owned of record in aggregate more than 95% of the Fund.
NOTE 8. RECLASSIFICATIONS
In accordance with SOP 93-2, the fund has recorded a reclassification in
the capital accounts. As of June 30, 1999 the fund recorded permanent book/tax
differences of $1,850 from net investment loss to paid in capital. This
reclassification has no impact on the net asset value of the fund and is
designed generally to present undistributed income and realized gains on a tax
basis which is considered to be more informative to shareholders.
NOTE 9. YEAR 2000 ISSUE
Like other mutual funds, financial and business organizations and
individuals around the world, the Fund could be adversely affected if the
computer systems used by the Advisor, Administrator or other service providers
to the Fund do not properly process and calculate date-related information and
data from and after January 1, 2000. This is commonly known as the "Year 2000
Issue." The Advisor and Administrator have taken steps that they believe are
reasonably designed to address the Year 2000 Issue with respect to computer
systems that are used and to obtain reasonable assurances that comparable steps
are being taken by each of the Fund's major service providers. At this time,
however, there can be no assurance that these steps will be sufficient to avoid
any adverse impact on the Fund. In addition, the Advisor cannot make any
assurances that the Year 2000 Issue will not affect the companies in which the
Fund invests or worldwide markets and economies.
<PAGE>
GJMB Growth Fund
Annual Report
June 30, 1999
Fund Advisor :
Gamble, Jones, Morphy & Bent
301 East Colorado Boulevard, Suite 802
Pasadena, California 91101
Telephone (626) 795-7583
Fax (626) 795-7583
Web Address: www.gjmb.com
<PAGE>
GJMB Growth Fund
Annual Report dated June 30, 1999
Dear Fellow Shareholders:
We are pleased to present you with our Fund's investment results for its first
six months of operation. The Fund's cumulative total return from December 31,
1998 through June 30, 1999 was 10.2%, net of all fees. This return slightly
lagged the 11.7% return of the market capitalization weighted Standard & Poor's
500 Index. It should be noted however that during the Fund's first 18 days of
operation, the Fund was allocated 100% in a money market investment because the
Fund wasn't large enough to justify the purchase of individual securities. When
we did begin to actively manage the Fund on January 29, 1999 however, the
Standard & Poor's 500 Index had already gained 4.2% for the year, compared to
just 0.2% for our money market portfolio. We therefore are quite proud of the
fact that we were able to overcome a majority of this deficit in such a short
period of time. The Fund's investment results are compared below with the
Standard & Poor's 500 Index.
Returns for the Periods Ended June 30, 1999
Since Inception
Fund/Index 3 Months 6 Months 12/31/98
GJMB Growth Fund 6.9% 10.2% 10.2%
S&P 500 Index 7.0% 11.7% 11.7%
Comparison of the Change in Value of a $200,000 investment in the GJMB
Growth Fund and the Unmanaged S&P 500 Index.
CHART:
DATE GJMB Growth Fund S&P 500 Index
12/31/98 $200,000 $200,000
1/31/99 $200,400 $208,202
2/26/99 $199,800 $201,481
3/31/99 $206,600 $209,394
4/30/99 $213,400 $217,238
5/31/99 $205,400 $211,814
6/30/99 $220,400 $223,345
This chart shows the value of a hypothetical initial investment of $200,000 in
the Fund and the S&P 500 Index on December 31, 1998 and held through June 30,
1999. The S&P 500 Index is a widely recognized unmanaged index of common stock
prices. The Index returns do not reflect expenses, which have been deducted from
the Fund's return. These performance figures include the change in value of the
stocks in the indices plus the reinvestment of dividends and are not annualized.
THE FUND'S RETURN REPRESENTS PAST PERFORMANCE AND IS NOT PREDICATIVE OF FUTURE
RESULTS.
<PAGE>
Portfolio Overview
It is the focus of the Fund to strive for long term capital appreciation via
investments in individual large capitalization blue chip stocks. As a
non-diversified fund, we have reserved the opportunity to take a significant
position in one or two key stocks or even possibly maintain a large cash balance
as we deem appropriate. Detailed below is a summary of the Fund's current level
of diversification which includes a listing of our major industry weightings as
well as the largest holdings of the Fund as of June 30, 1999.
Industry Sector Weightings
--------------------------
Percent of
Net Assets
06/30/99
----------
Capital Equipment & Services 10.3%
Consumer Cyclicals 3.0%
Consumer Non-Cyclicals 7.1%
Energy/Oil Services 5.1%
Financial Services 12.6%
Health Care/Pharmaceuticals 22.0%
Technology 21.5%
Telecommunications 7.6%
Cash Equivalents 10.8%
----------
Total 100.0%
Ten Largest Equity Holdings
---------------------------
Percent of
Net Assets
06/30/99
----------
Microsoft 4.4%
Oracle Corporation 4.3%
General Electric 4.3%
Procter & Gamble 4.2%
American Home Products 3.3%
Cisco Systems 3.3%
Fannie Mae 3.3%
Johnson & Johnson 3.2%
Lucent Technology 3.2%
Sun Microsystems 3.2%
----------
Total 36.7%
<PAGE>
Our Market Outlook
The economy continues to provide a strong fundamental backdrop for
investors. Low interest rates, low inflation rates and a government operating
surplus should provide a scenario for continued long term growth for our
domestic economy. Our view for 2000 is continued solid growth in GNP on the
order of 2%, which will easily make the current expansion the longest in U.S.
history.
With the above components in place for the foreseeable future, our
focus will shift to corporate earnings, both their reliability and their
quality. Current earnings results for much of the S&P 500 reflect a 15% increase
over last year. This gives us confidence that with the continued strong growth
in the domestic economy, improved global conditions and productivity gains,
earnings trends for 2000 will be in the area of 8-10%.
Although common stocks are expensive on an historical basis, we feel
long term investors will be rewarded by our fund which is designed to own
companies that have a proven record of increasing earnings in good times and
bad. We feel that the companies listed in our "largest equity holdings" are very
representative of our total fund holdings.
We look forward to another successful year and are delighted that you have
chosen to invest in it with us.
Best regards,
Thomas S. Jones Christopher E. Morphy
Principal - Principal -
Gamble,Jones,Morphy & Bent Gamble,Jones,Morphy & Bent
<PAGE>
GJMB Growth Fund
Schedule of Investments - June 30, 1999
<TABLE>
<S> <C> <C>
Common Stocks - 89.2% Shares Value
Capital Equipment & Services - 10.3%
AlliedSignal, Inc. 2,956 $ 186,228
General Electric Co. 2,450 276,850
Illinois Tool Works, Inc. 2,550 209,100
-------------
672,178
-------------
Consumer Cyclicals - 3.0%
Ford Motor Corp. 3,475 196,120
-------------
Consumer Non-Cyclicals - 7.1%
Coca-Cola Co. 3,100 193,750
Procter & Gamble, Inc. 3,025 269,981
-------------
463,731
-------------
Energy - 5.1%
Chevron Corp. 837 79,672
Royal Dutch Petroleum ADR 1,319 79,470
Schlumberger Ltd. 2,665 169,727
-------------
328,869
-------------
Financial Services - 12.6%
American International Group 1,650 193,153
Bank of America Corp. 2,800 205,275
Fannie Mae 3,100 211,962
Fleet Financial Group 4,660 206,788
-------------
817,178
-------------
Health Care & Pharmaceuticals - 22.0%
Abbott Laboratories, Inc. 4,263 193,967
American Home Products, Inc. 3,700 212,750
Bristol-Myers Squibb, Inc. 2,775 195,464
Johnson & Johnson, Inc. 2,150 210,700
Merck & Co., Inc. 2,775 205,350
Pfizer, Inc. 1,890 207,428
Warner Lambert, Inc. 2,983 206,946
-------------
1,432,605
-------------
Technology - 21.5%
Cisco Systems, Inc. (a) 3,300 212,231
Intel Corp. 3,400 202,300
Lucent Technologies, Inc. 3,125 210,742
Microsoft, Inc. (a) 3,164 285,353
Oracle Corp. (a) 7,505 278,623
Sun Microsystems, Inc. (a) 3,048 209,931
-------------
1,399,180
-------------
See accompanying notes which are an integral part of the financial statements
<PAGE>
GJMB Growth Fund
Schedule of Investments - June 30, 1999 - continued
Common Stocks - continued Shares Value
Telecommunications - 7.6%
AT&T Corp. 2,425 $ 135,346
Bell Atlantic Corp. 2,750 179,781
Vodafone Airtouch Public ADR 898 176,906
-------------
492,033
-------------
TOTAL COMMON STOCKS (Cost $5,330,835) 5,801,894
-------------
Principal
Amount Value
Money Market Securities - 10.8%
Firstar Treasury Fund, 3.98% (b) (Cost $699,464) $699,464 699,464
-------------
TOTAL INVESTMENTS - 100.0% (Cost $6,030,299) 6,501,358
-------------
Other assets less liabilities - 0.0% 978
-------------
TOTAL NET ASSETS - 100.0% $ 6,502,336
=============
</TABLE>
(a) Non-income producing
(b) Variable rate security; the coupon rate shown represents the rate at
June 30, 1999.
See accompanying notes which are an integral part of the financial statements
<PAGE>
GJMB Growth Fund June 30, 1999
Statement of Assets & Liabilities
Assets
Investment in securities (cost $6,030,299) $ 6,501,358
Dividends receivable 4,640
Interest receivable 2,381
-------------
Total assets 6,508,379
Liabilities
Accrued investment advisory fee payable $ 6,043
-----------
Total liabilities 6,043
-------------
Net Assets $ 6,502,336
=============
Net Assets consist of:
Paid in capital $ 5,990,120
Accumulated undistributed net investment income 6,675
Accumulated undistributed net realized gain on investments 34,482
Net unrealized appreciation on investments 471,059
-------------
Net Assets, for 589,927 shares $ 6,502,336
=============
Net Asset Value
Net Assets
Offering price and redemption price per share ($6,502,336/589,927) $ 11.02
=============
See accompanying notes which are an integral part of the financial statements
<PAGE>
GJMB Growth Fund
Statement of Operations for the period December 31, 1998
(Commencement of Operations) to June 30, 1999
Investment Income
Dividend income $ 19,276
Interest income 11,298
------------
Total Income 30,574
Expenses
Investment advisory fee $ 23,899
Trustees' fees 1,084
-------------
Total expenses before reimbursement 24,983
Reimbursed expenses (1,084)
-------------
Total operating expenses 23,899
------------
Net Investment Income 6,675
------------
Realized & Unrealized Gain (Loss)
Net realized gain on investment securities 34,482
Change in net unrealized appreciation (depreciation)
on investment securities 471,059
------------
Net gain on investment securities 505,541
------------
Net increase in net assets resulting from operations $ 512,216
============
See accompanying notes which are an integral part of the financial statements
<PAGE>
GJMB Growth Fund
Statement of Changes in Net Assets for the period December 31, 1998
(Commencement of Operations) to June 30, 1999
Increase (Decrease) in Net Assets
Operations
Net investment income $ 6,675
Net realized gain on investment securities 34,482
Change in net unrealized appreciation (depreciation) 471,059
------------
Net increase in net assets resulting from operations 512,216
------------
Share Transactions
Net proceeds from sale of shares 5,990,403
Shares redeemed (283)
------------
Net increase in net assets resulting
from share transactions 5,990,120
------------
Total increase in net assets 6,502,336
Net Assets
Beginning of period -
------------
End of period [including accumulated undistributed net
investment income of $6,675] $ 6,502,336
============
See accompanying notes which are an integral part of the financial statements
<PAGE>
GJMB Growth Fund
Financial Highlights for the period December 31, 1998
(Commencement of Operations) to June 30, 1999
Selected Per Share Data
Net asset value, beginning of period $ 10.00
--------------
Income from investment operations
Net investment income 0.02
Net realized and unrealized gain 1.00
--------------
Total from investment operations 1.02
--------------
Net asset value, end of period $ 11.02
==============
Total Return (b) 10.20%
Ratios and Supplemental Data
Net assets, end of period (000) $6,502
Ratio of expenses to average net assets 1.20% (a)
Ratio of expenses to average net assets
before reimbursement 1.25% (a)
Ratio of net investment income to
average net assets 0.34% (a)
Ratio of net investment income to
average net assets before reimbursement 0.28% (a)
Portfolio turnover rate 24.26% (a)
(a) Annualized
(b) For periods of less than a full year, total returns are not annualized.
See accompanying notes which are an integral part of the financial statements
<PAGE>
GJMB Growth Fund
Notes to Financial Statements
June 30, 1999
NOTE 1. ORGANIZATION
GJMB Growth Fund (the "Fund") was organized as a series of the AmeriPrime
Funds, an Ohio business trust (the "Trust"), on October 22, 1998 and commenced
operations on December 31, 1998. The Fund is registered under the Investment
Company Act of 1940, as amended, as a non-diversified open-end management
investment company. The Fund's investment objective is to provide long term
capital appreciation. The Declaration of Trust permits the Trustees to issue an
unlimited number of shares of beneficial interest of separate series without par
value.
NOTE 2. SIGNIFICANT ACCOUNTING POLICIES
The following is a summary of significant accounting policies followed by
the Fund in the preparation of its financial statements.
Securities Valuations- Securities which are traded on any exchange or on
the NASDAQ over-the-counter market are valued at the last quoted sale price.
Lacking a last sale price, a security is valued at its last bid price except
when, in the Advisor's opinion, the last bid price does not accurately reflect
the current value of the security. All other securities for which
over-the-counter market quotations are readily available are valued at their
last bid price. When market quotations are not readily available, when the
Advisor determines the last bid price does not accurately reflect the current
value or when restricted securities are being valued, such securities are valued
as determined in good faith by the Advisor, in conformity with guidelines
adopted by and subject to review of the Board of Trustees of the Trust (the
"Board").
Fixed income securities generally are valued by using market quotations,
but may be valued on the basis of prices furnished by a pricing service when the
Advisor believes such prices accurately reflect the fair market value of such
securities. A pricing service utilizes electronic data processing techniques
based on yield spreads relating to securities with similar characteristics to
determine prices for normal institutional-size trading units of debt securities
without regard to sale or bid prices. When prices are not readily available from
a pricing service, or when restricted or illiquid securities are being valued,
securities are valued at fair value as determined in good faith by the Advisor,
subject to review of the Board. Short-term investments in fixed-income
securities with maturities of less than 60 days when acquired, or which
subsequently are within 60 days of maturity, are valued by using the amortized
cost method of valuation, which the Board has determined will represent fair
value.
<PAGE>
GJMB Growth Fund
Notes to Financial Statements
June 30, 1999 - continued
NOTE 2. SIGNIFICANT ACCOUNTING POLICIES - continued
Federal Income Taxes- The Fund intends to qualify each year as a "regulated
investment company" under the Internal Revenue Code of 1986, as amended. By so
qualifying, the Fund will not be subject to federal income taxes to the extent
that it distributes substantially all of its net investment income and any
realized capital gains.
Dividends and Distributions- The Fund intends to distribute substantially all of
its net investment income as dividends to its shareholders on an annual basis.
The Fund intends to distribute its net long-term capital gains and its net
short-term capital gains at least once a year.
Other- The Fund follows industry practice and records security transactions on
the trade date. The specific identification method is used for determining gains
or losses for financial statements and income tax purposes. Dividend income is
recorded on the ex-dividend date and interest income is recorded on an accrual
basis. Discounts and premiums on securities purchased are amortized over the
life of the respective securities.
NOTE 3. FEES AND OTHER TRANSACTIONS WITH AFFILIATES
The Fund retains Gamble, Jones, Morphy & Bent (the "Advisor") to manage the
Fund's investments. The Advisor became a registered investment adviser in 1956
and was reorganized as a California corporation in 1990. Thomas S. Jones,
President of the Advisor, and Thomas W. Bent, Executive Vice President of the
Advisor, are the controlling shareholders of Gamble, Jones, Morphy & Bent. The
investment decisions for the Fund are made by the executive committee of the
Advisor, which is primarily responsible for the day-to-day management of the
Fund's portfolio.
Under the terms of the management agreement, (the "Agreement"), the 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 commissions, taxes,
interest, fees and expenses of non-interested person trustees, and extraordinary
expenses. As compensation for its management services and agreement to pay the
Fund's expenses, the Fund is obligated to pay the Advisor a fee of 1.20% of the
average daily net assets of the Fund. It should be noted that most investment
companies pay their own operating expenses directly, while the Fund's expenses,
except those specified above, are paid by the Advisor. For the period from
December 31, 1998 (commencement of operations) through June 30, 1999 the Advisor
received a fee of $23,899 from the Fund. The Advisor has voluntarily agreed to
reimburse other expenses to the extent necessary to maintain total operating
expenses at the rate of 1.20%. For the period December 31, 1998 (commencement of
operations) through June 30, 1999, the Advisor reimbursed expenses of $1,084.
There is no assurance that such reimbursement will continue in the future.
<PAGE>
GJMB Growth Fund
Notes to Financial Statements
June 30, 1999 - continued
NOTE 3. FEES AND OTHER TRANSACTIONS WITH AFFILIATES - continued
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 and
personnel. For the period from December 31, 1998 (commencement of operations) to
June 30, 1999, the Administrator received fees of $15,000 from the Advisor for
administrative services provided to the Fund.
The Fund retains AmeriPrime Financial Securities, Inc. ("the Distributor")
to act as the principal distributor of the Fund's shares. There were no payments
made to the Distributor from December 31, 1998 (commencement of operations) to
June 30, 1999. Certain members of management of the Administrator and the
Distributor are also members of management of the AmeriPrime Trust.
NOTE 4. SHARE TRANSACTIONS
As of June 30, 1999, there was an unlimited number of authorized shares for
the Fund. Paid in capital at June 30, 1999 was $5,990,120.
Transactions in shares were as follows:
For the period December 31, 1998
(Commencement of Operations) to June 30, 1999
Shares Dollars
Shares sold 589,954 $5,990,403
Shares redeemed (27) (283)
------- ------------
589,927 $5,990,120
======= ============
NOTE 5. INVESTMENTS
For the period from December 31, 1998 (commencement of operations) through
June 30, 1999, purchases and sales of investment securities, other than
short-term investments,
<PAGE>
GJMB Growth Fund
Notes to Financial Statements
June 30, 1999 - continued
NOTE 5. INVESTMENTS - continued
aggregated $5,714,675 and $418,323, respectively. As of June 30, 1999, the gross
unrealized appreciation for all securities totaled $536,712 and the gross
unrealized depreciation for all securities totaled $65,653 for a net unrealized
appreciation of $471,059. The aggregate cost of securities for federal income
tax purposes at June 30, 1999 was $6,030,299.
NOTE 6. ESTIMATES
Preparation of financial statements in accordance with generally accepted
accounting principles requires management to make estimates and assumptions that
affect the reported amounts of assets and liabilities and the reported amounts
of revenues and expenses during the reporting period. Actual results could
differ from those estimates.
NOTE 7. RELATED PARTY TRANSACTIONS
The Advisor is not a registered broker-dealer of securities and thus does
not receive commissions on trades made on behalf of the Fund. The beneficial
ownership, either directly or indirectly, of more than 25% of the voting
securities of a Fund creates a presumption of control of the Fund, under Section
2(a)(9) of the Investment Company Act of 1940. As of June 30, 1999, Charles
Schwab & Co.owned of record in aggregate more than 98% of the Fund.
NOTE 8. YEAR 2000 ISSUE
Like other mutual funds, financial and business organizations and
individuals around the world, the Fund could be adversely affected if the
computer systems used by the Advisor, Administrator or other service providers
to the Fund do not properly process and calculate date-related information and
data from and after January 1, 2000. This is commonly known as the "Year 2000
Issue." The Advisor and Administrator have taken steps that they believe are
reasonably designed to address the Year 2000 Issue with respect to computer
systems that are used and to obtain reasonable assurances that comparable steps
are being taken by each of the Fund's major service providers. At this time,
however, there can be no assurance that these steps will be sufficient to avoid
any adverse impact on the Fund. In addition, the Advisor cannot make any
assurances that the Year 2000 Issue will not affect the companies in which the
Fund invests or worldwide markets and economies.
<PAGE>
June 30, 1999
Dear Fellow Shareholders,
The IMS Capital Value Fund returned +18.57% to investors over the last 12
months, beating 90% of the 273 funds in its category (mid-cap value) according
to Morningstar. Adhering to our strict value discipline has provided handsome
rewards to our fellow shareholders over the last year. While we welcome the
renewed popularity of value investing, we are quick to point out that our
approach has never wavered.
The Fund returned: +12.26% for the quarter
+16.57% for the last six months
+29.08% for the last eight months
+18.57% for the last twelve months
The Fund has returned an average of +16.78% annually since its inception on
August 5, 1996.
Even with the Dow at record highs, we continue to uncover compelling investment
opportunities. Our level of commitment to value investing is perhaps best
illustrated by the Fund's price-to-book value ratio, which according to
Morningstar, is at a 50% discount to the S & P 500 Index. In other words, in
terms of assets ( cash, plants, equipment, etc) the average stock in the Index
is twice as expensive as the average stock in our portfolio. Since much of our
best research has yet to bear fruit, we feel the Fund is poised to continue
delivering solid returns. While the overall market will inevitably experience
short term volatility due to Y2K and generally high valuations, we feel the
long-term prospects of the businesses we own look quite promising.
The objective of the IMS Capital Value Fund is long-term growth. The Fund
invests primarily in blue chip stocks with strong value characteristics and
improving business momentum. The Fund's holdings are well diversified across all
major industry sectors. Considerable care is taken to minimize capital gains and
produce superior after-tax returns. We continually search out undervalued
opportunities that will help to both grow and protect our shareholder's capital.
We appreciate your trust in joining us as shareholders.
Sincerely,
Carl W. Marker
Portfolio Manager
IMS Capital Value Fund
P.S. - We recently changed our fiscal year-end to coincide with the end of a
quarter. The change will allow for greater efficiencies and make it easier for
shareholders to compare our results with other funds and benchmarks. Our new
fiscal year ended on June 30th, which explains why you have received two
financial reports in a relatively short period of time.
<PAGE>
Returns for the periods ended June 30, 1999
Chart
Date IMS Capital Value Fund Russell Mid-Cap Value Index
08-05-96 $10,000 $10,000
10-31-96 $10,760 $10,785
04-30-97 $11,360 $11,901
10-31-97 $12,060 $14,290
04-30-98 $13,612 $16,776
10-31-98 $12,157 $15,111
06-30-99 $15,682 $17,362
This graph shows the value of a hypothetical $10,000 investment in the Fund and
the Russell Midcap Value Index. The index is an unmanaged group of stocks whose
total return includes the reinvestment of any dividends and capital gain
distributions, but does not reflect expenses which have lowered the Fund's
return. THE FUND'S RETURN REPRESENTS PAST PERFORMANCE AND IS NOT A GUARANTEE OF
FUTURE RESULTS.
- ---------------------------------------- ------------------ --------------------
One Year Total Total Average Annual
Return Return Since
Inception
Fund / Index August 5, 1996
- ---------------------------------------- ------------------ --------------------
IMS Capital Value Fund 18.57% 16.78%
- ---------------------------------------- ------------------ --------------------
Value Line Index 10.41% 20.80%
- ---------------------------------------- ------------------ --------------------
Russell Mid-Cap Value Index 5.63% 20.92%
- ---------------------------------------- ------------------ --------------------
S&P 500 Index 22.76% 28.93%
- ---------------------------------------- ------------------ --------------------
The Value Line, Russell Mid-Cap Value and S&P 500 indexes shown are all widely
used benchmarks each representing an unmanaged group of stocks. Returns for the
indexes do not reflect expenses which have lowered the Fund's return. Returns
for the Value Line Index do not reflect the reinvestment of dividends or capital
gains. Returns for the Russell Mid-Cap Value and S&P 500 indexes do reflect the
reinvestment of both dividends and capital gain distributions.
Large discrepancies exist between the make up of the S&P 500 Index and the Fund
which make comparisons inappropriate, in the opinion of the Fund's advisor, with
the most significant discrepancy being the large-cap growth orientation of the
S&P 500 Index vs the Fund's mid-cap value characteristics. Therefore, the S&P
500 Index will no longer be used in future comparisons. The Russell Mid-Cap
Value and Value Line indexes make for more appropriate benchmarks as they
represent the performance stocks more similar in characteristics to that of the
Fund.
<PAGE>
IMS Capital Value Fund
Schedule of Investments - June 30, 1999
<TABLE>
<S> <C> <C>
Common Stocks - 98.3% Shares Value
BASIC INDUSTRIES - 6.7%
Iron & Steel - 3.2%
USX-U.S. Steel Group 14,000 $ 378,000
-------------
Metals & Mining - 1.4%
Newmont Mining Corp. 8,000 159,000
-------------
Packaging & Containers - 2.1%
Crown Cork & Seal, Inc. 8,500 242,250
-------------
TOTAL BASIC INDUSTRIES 779,250
-------------
DURABLES - 5.2%
Textiles & Apparel - 5.2%
Fruit of the Loom, Inc. - Class A (a) 20,000 195,000
Nike, Inc. - Class B 6,500 411,531
-------------
606,531
-------------
ENERGY - 6.6%
Oil & Gas - 6.6%
Diamond Offshore Drilling, Inc. 12,000 340,500
Pennzoil-Quaker State, Inc. 28,000 420,000
-------------
760,500
-------------
FINANCE - 7.2%
Banks - 3.7%
Citigroup, Inc. 9,000 427,500
-------------
Securities Industry - 3.5%
T. Rowe Price Associates 10,500 402,938
-------------
TOTAL FINANCE 830,438
-------------
HEALTH - 11.3%
Diversified - 2.7%
American Home Products, Inc. 5,500 316,250
Drugs & Pharmaceuticals - 5.0%
Amgen, Inc. (a) 3,000 182,625
IVAX Corp. (a) 28,000 395,500
-------------
578,125
-------------
Managed Care - 2.0%
Pacificare Health Systems, Inc. - Class A (a) 3,300 237,394
Medical Facilities Management - 1.6%
Columbia / HCA Healthcare Corp. 8,000 182,500
-------------
TOTAL HEALTH 1,314,269
-------------
See accompanying notes which are an integral part of the financial statements
<PAGE>
IMS Capital Value Fund
Schedule of Investments - June 30, 1999 - continued
Common Stocks - continued Shares Value
INDUSTRIAL MACHINERY & EQUIPMENT - 8.3%
Electrical Equipment - 4.3%
American Power Conversion, Inc. (a) 25,000 $ 503,125
-------------
Pollution Control - 4.0%
Waste Management 8,600 462,250
-------------
TOTAL INDUSTRIAL MACHINERY & EQUIPMENT 965,375
-------------
MEDIA & LEISURE - 2.4%
Leisure Durables & Toys - 2.4%
Marvel Enterprises, Inc. (a) 37,000 272,875
-------------
NON-DURABLES - 9.3%
Beverages - 3.2%
PepsiCo, Inc. 9,500 367,531
-------------
Foods - 2.3%
Nabisco Group Holdings 14,000 273,875
-------------
Household Products - 3.8%
Kimberly-Clark Group 5,000 285,000
Sunbeam Corp. (a) 20,000 158,750
-------------
443,750
-------------
TOTAL NON-DURABLES 1,085,156
-------------
RETAIL & WHOLESALE - 7.5%
Specialty - 7.5%
OfficeMax, Inc. (a) 38,000 456,000
Toys R Us, Inc. (a) 20,000 413,750
-------------
869,750
-------------
SERVICES - 5.1%
Services - 5.1%
Block (H&R) 9,000 450,000
Olsten Corp. 23,000 145,187
-------------
595,187
-------------
TECHNOLOGY - 16.0%
Communications Equipment - 2.4%
Motorola, Inc. 3,000 284,250
-------------
Computer Services & Software - 10.0%
Electronic Data Systems Corp. 7,500 424,219
-------------
Oracle Corp. (a) 8,000 297,000
Symantec Corp. (a) 17,000 433,500
-------------
1,154,719
-------------
See accompanying notes which are an integral part of the financial statements
<PAGE>
IMS Capital Value Fund
Schedule of Investments - June 30, 1999 - continued
Common Stocks - continued Shares Value
TECHNOLOGY - continued
Electronics - 3.6%
Intel Corp. 7,000 $ 416,500
-------------
TOTAL TECHNOLOGY 1,855,469
-------------
TRANSPORTATION - 2.8%
Trucking & Freight - 2.8%
FDX Corp. (a) 6,000 325,500
-------------
UTILITIES - 9.9%
Cellular - 2.5%
Paging Network, Inc. (a) 60,000 288,750
-------------
Electric Utility - 3.3%
Niagara Mohawk Holdings, Inc. (a) 24,000 385,500
-------------
Telephone Services - 4.1%
AT&T Corp. 8,500 474,406
-------------
TOTAL UTILITIES 1,148,656
-------------
TOTAL COMMON STOCKS (Cost $9,336,148) 11,408,956
-------------
Principal
Value Value
Money Market Securities - 1.7%
Firstar Treasury Fund, 3.98% (b) (Cost $193,850) $193,850 193,850
-------------
TOTAL INVESTMENTS - 100.0% (Cost $9,529,998) 11,602,806
-------------
Other assets less liabilities - 0.0% 5,085
-------------
TOTAL NET ASSETS - 100.0% $ 11,607,891
=============
</TABLE>
(a) Non-income producing
(b) Variable rate security; the coupon rate shown represents the rate at
June 30, 1999.
See accompanying notes which are an integral part of the financial statements
<PAGE>
IMS Capital Value Fund June 30, 1999
Statement of Assets & Liabilities
Assets
Investment in securities (cost $9,529,998) $ 11,602,806
Receivable for fund shares sold 12,609
Receivable from advisor 6,400
Dividends receivable 7,555
Interest receivable 357
Deferred organization costs 14,710
-------------
Total assets 11,644,437
Liabilities
Accrued investment advisory fee payable $ 23,893
Payable for fund shares redeemed 1,026
Other payables and accrued expenses 11,627
--------------
Total liabilities 36,546
-------------
Net Assets $ 11,607,891
=============
Net Assets consist of:
Paid in capital $ 8,414,349
Accumulated undistributed net realized gain on investments 1,123,819
Accumulated net realized gain (loss) on options transactions (3,085)
Net unrealized appreciation on investments 2,072,808
-------------
Net Assets, for 797,094 shares $ 11,607,891
=============
Net Asset Value
Offering price and redemption price per share ($11,607,891/797,094) $ 14.56
=============
See accompanying notes which are an integral part of the financial statements
<PAGE>
IMS Capital Value Fund
Statement of Operations for the
eight months ended June 30, 1999
Investment Income
Dividend income $ 113,103
Interest income 8,222
-------------
Total Income 121,325
Expenses
Investment advisory fee $124,449
Administration fees 20,000
Transfer agent fees 14,515
Pricing & bookkeeping fees 11,536
Audit fees 6,638
Legal fees 4,613
Custodian fees 4,172
Amortization of organizational expenses 3,127
Shareholder reports 2,802
Trustees' fees 1,357
Registration fees 1,105
Miscellaneous 1,314
--------------
Total expenses before reimbursement 195,628
Waived fees and reimbursed expenses (71,268)
--------------
Total operating expenses 124,360
-------------
Net Investment Income (Loss) (3,035)
-------------
Realized & Unrealized Gain (Loss)
Net realized gain on investment securities 1,172,251
Net realized gain (loss) on options transactions 2,923
Change in net unrealized appreciation (depreciation)
on investment securities 1,803,897
--------------
Net gain on investment securities 2,979,071
-------------
Net increase in net assets resulting from operations $ 2,976,036
=============
See accompanying notes which are an integral part of the financial statements
<PAGE>
IMS Capital Value Fund
Statement of Changes in Net Assets
Eight Months Year
Ended Ended
June 30, October 31,
1999 1998
-------------- --------------
Increase (Decrease) in Net Assets
Operations
Net investment income (loss) $ (3,035) $ (60,430)
Net realized gain on
investment securities 1,172,251 26,314
Net realized gain on
options transactions 2,923 -
Net realized gain (loss) on
options transactions - (6,008)
Change in net unrealized
appreciation (depreciation) 1,803,897 69,368
-------------- --------------
Net increase in net assets
resulting from operations 2,976,036 29,244
-------------- --------------
Distributions to shareholders
Return of capital - (25,273)
From net realized gain - (682,377)
-------------- --------------
Total distributions - (707,650)
-------------- --------------
Share Transactions
Net proceeds from sale of shares 607,468 3,955,446
Shares issued in reinvestment of
distributions - 702,348
Shares redeemed (3,499,602) (2,387,348)
-------------- --------------
Net increase (decrease) in net assets resulting
from share transactions (2,892,134) 2,270,446
-------------- --------------
Total increase in net assets 83,902 1,592,040
Net Assets
Beginning of period 11,523,989 9,931,949
-------------- --------------
End of period [including accumulated
undistributed net investment income
(loss) of $0, and $0, respectively] $ 11,607,891 $ 11,523,989
============== ==============
See accompanying notes which are an integral part of the financial statements
<PAGE>
IMS Capital Value Fund
Financial Highlights
<TABLE>
<S> <C> <C> <C> <C>
Eight months Period
ended ended
June 30, Years ended October 31, October 31,
1999 1998 1997 1996 (c)
------------ ------------ ------------ ------------
Selected Per Share Data
Net asset value, beginning of period $ 11.28 $ 12.06 $ 10.76 $ 10.00
------------ ------------ ------------ ------------
Income from investment operations:
Net investment income (loss) - (0.06) (0.08) (0.01)
Net realized and unrealized gain 3.28 0.12 1.38 0.77
------------ ------------ ------------ ------------
Total from investment operations 3.28 0.06 1.30 0.76
------------ ------------ ------------ ------------
Less Distributions
From net investment income - (0.03) - -
From net realized gain - (0.81) - -
------------ ------------ ------------ ------------
Total Distributions - (0.84) - -
------------ ------------ ------------ ------------
Net asset value, end of period $ 14.56 11.28 $ 12.06 $ 10.76
============ ============ ============ ============
Total Return (b) 29.08% 2.27% 12.08% 7.60%
Ratios and Supplemental Data
Net assets, end of period (000) $11,608 $11,524 $9,932 $4,741
Ratio of expenses to average net assets 1.59% (a) 1.73% 1.97% 1.84% (a)
Ratio of expenses to average net assets
before reimbursement 2.50% (a) 2.34% 2.54% 3.92% (a)
Ratio of net investment income (loss) to
average net assets (0.04)% (a) (0.53)% (0.64)% (0.25)% (a)
Ratio of net investment income (loss) to
average net assets before reimbursement (0.95)% (a) (1.14)% (1.20)% (2.32)% (a)
Portfolio turnover rate 68.16% (a) 81.74% 34.76% 3.56% (a)
</TABLE>
(a) Annualized
(b) For periods of less than a full year, total returns are not annualized.
(c) August 5, 1996 (commencement of operations) to October 31, 1996
See accompanying notes which are an integral part of the financial statements
<PAGE>
IMS Capital Value Fund
Notes To Financial Statements
June 30, 1999
NOTE 1. ORGANIZATION
IMS Capital Value Fund (the "Fund") is organized as a series of the
AmeriPrime Funds, an Ohio business trust (the "Trust"). The Fund is registered
under the Investment Company Act of 1940, as amended, as a diversified, open-end
management investment company. The Fund's investment objective is to provide
long-term growth. The Declaration of Trust permits the trustees to issue an
unlimited number of shares of beneficial interest of separate series without par
value. The Board of Trustees of the Trust (the "Board") approved a change in the
fiscal year-end of the Fund to June 30. Accordingly, the financial statements of
the fund are presented for the eight-month period ended June 30, 1999.
NOTE 2. SIGNIFICANT ACCOUNTING POLICIES
The following is a summary of significant accounting policies followed by
the Fund in the preparation of its financial statements.
Securities Valuation - Securities which are traded on any exchange or on the
NASDAQ over-the-counter market are valued at the last quoted sale price. Lacking
a last sale price, a security is valued at its last bid price except when, in
the Advisor's opinion, the last bid price does not accurately reflect the
current value of the security. All other securities for which over-the-counter
market quotations are readily available are valued at their last bid price. When
market quotations are not readily available, and the Advisor determines the last
bid price does not accurately reflect the current value or when restricted
securities are being valued, such securities are valued as determined in good
faith by the Advisor, in conformity with guidelines adopted by and subject to
review of the Board.
Fixed-income securities generally are valued by using market quotations,
but may be valued on the basis of prices furnished by a pricing service when the
Advisor believes such prices accurately reflect the fair market values of such
securities. A pricing service utilizes electronic data processing techniques
based on yield spreads relating to securities with similar characteristics to
determine prices for normal institutional-size trading units of debt securities
without regard to sale or bid prices. When prices are not readily available from
a pricing service, or when restricted or illiquid securities are being valued,
securities are valued at fair value as determined in good faith by the Advisor,
subject to review of the Board. Short-term investments in fixed-income
securities with maturities of less than 60 days when acquired, or which
subsequently are within 60 days of maturity, are valued by using the amortized
cost method of valuation, which the Board has determined will represent fair
value.
<PAGE>
IMS Capital Value Fund
Notes To Financial Statements
June 30, 1999 - continued
NOTE 2. SIGNIFICANT ACCOUNTING POLICIES - continued
Federal Income Taxes - The Fund intends to qualify each year as a "regulated
investment company" under the Internal Revenue Code of 1986, as amended. By so
qualifying, the Fund will not be subject to federal income taxes to the extent
that it distributes substantially all of its net investment income and any
realized capital gains.
Dividends and Distributions - The Fund intends to distribute substantially all
of its net investment income as dividends to its shareholders on an annual
basis. The Fund intends to distribute its net long-term capital gains and its
net short-term capital gains at least once a year.
Other - The Fund follows industry practice and records security transactions on
the trade date. The specific identification method is used for determining gains
or losses for financial statements and income tax purposes. Dividend income is
recorded on the ex-dividend date and interest income is recorded on an accrual
basis. Discounts and premiums on securities purchased are amortized over the
life of the respective securities.
NOTE 3. FEES AND OTHER TRANSACTIONS WITH AFFILIATES
The Fund retains IMS Capital Management, Inc. (the "Advisor") to manage the
Fund's investments. Carl W. Marker, Chairman and President of the Advisor, is
primarily responsible for the day to day management of the Fund's portfolio.
Under the terms of the management agreement, (the "Agreement"), the Advisor
manages the Fund's investments subject to approval of the Board of Trustees. As
compensation for its management services, the Fund is obligated to pay the
Advisor a fee computed and accrued daily and paid monthly at an annual rate of
1.59% of the average daily net assets of the Fund. Through October 31, 1999, the
Advisor has voluntarily agreed to waive the management fee to a rate of 1.26%.
For the eight-month period ended June 30, 1999 the Advisor received fees of
$124,449 from the Fund. The Advisor has voluntarily agreed to reimburse other
expenses for the Fund through October 31, 1999 to the extent necessary to
maintain total operating expenses at the rate of 1.59%. For the eight-month
period ended June 30, 1999 the Advisor waived fees and reimbursed expenses of
$71,268. There is no assurance that such arrangement will continue in the
future.
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 and
personnel. For the eight-month period ended June 30, 1999 the Administrator
received fees of $20,000 from the Advisor for administrative services provided
to the Fund.
<PAGE>
IMS Capital Value Fund
Notes To Financial Statements
June 30, 1999 - continued
NOTE 3. FEES AND OTHER TRANSACTIONS WITH AFFILIATES - continued
The Fund retains AmeriPrime Financial Securities, Inc. (the "Distributor")
to act as the principal distributor of the Fund's shares. There were no payments
made to the Distributor for the eight-month period ended June 30, 1999. Certain
members of management of the Administrator and the Distributor are also members
of management of the AmeriPrime Trust.
NOTE 4. SHARE TRANSACTIONS
As of June 30, 1999, there was an unlimited number of authorized shares for
the Fund. Paid in capital at June 30, 1999 was $8,414,349.
Transactions in shares were as follows:
Eight Months ended Year ended
June 30, 1999 October 31, 1998
Shares Dollars Shares Dollars
Shares sold 45,949 $607,468 338,518 $3,955,446
Shares issued in
reinvestment - - 65,032 702,348
Shares redeemed (270,632) (3,499,602) (205,539) (2,387,348)
------- --------- ------- ---------
(224,683) $(2,892,134) 198,011 $2,270,446
======= ========= ======= =========
NOTE 5. INVESTMENTS
For the eight-month period ended June 30, 1999, purchases and sales of
investment securities, other than short-term investments, aggregated $5,142,408
and $8,023,641, respectively. The gross unrealized appreciation for all
securities totaled $2,416,771 and the gross unrealized depreciation for all
securities totaled $343,963 for a net unrealized appreciation of $2,072,808. The
aggregate cost of securities for federal income tax purposes at June 30, 1999
was $9,529,998.
<PAGE>
IMS Capital Value Fund
Notes To Financial Statements
June 30, 1999 - continued
NOTE 6. ESTIMATES
Preparation of financial statements in accordance with generally accepted
accounting principles requires management to make estimates and assumptions that
affect the reported amounts of assets and liabilities and the reported amounts
of revenues and expenses during the reporting period. Actual results could
differ from those estimates.
NOTE 7. RECLASSIFICATIONS
In accordance with SOP 93-2, the fund has recorded a reclassification in
the capital accounts. As of June 30, 1999, the fund recorded permanent book/tax
differences of $3,035 from net investment loss to accumulated undistributed net
realized gains. This reclassification has no impact on the net asset value of
the fund and is designed generally to present undistributed income and realized
gains on a tax basis which is considered to be more informative to shareholders.
NOTE 8. YEAR 2000 ISSUE
Like other mutual funds, financial and business organizations and
individuals around the world, the Fund could be adversely affected if the
computer systems used by the Advisor, Administrator or other service providers
do not properly process and calculate date related information and data from and
after January 1, 2000. This is commonly known as the "Year 2000 Issue." The
Advisor and Administrator have taken steps that they believe are reasonably
designed to address the Year 2000 Issue with respect to computer systems that
are used and to obtain reasonable assurances that comparable steps are being
taken by each of the Fund's major service providers. At this time, however,
there can be no assurance that these steps will be sufficient to avoid any
adverse impact on the Fund. In addition, the Advisor cannot make any assurances
that the Year 2000 Issue will not affect the companies in which the Fund invests
or worldwide markets and economies.
<PAGE>
Dear Fellow Shareholder,
It has not been an easy year for the Jumper Strategic Advantage Fund due to the
increase in short-term interest rates and the unusual characteristics of equity
markets. While we are disappointed with the Fund's results, we are optimistic
about the future. Currently, we feel there is significant value in the bond
market versus historical returns and we are well positioned to take advantage of
this situation.
Short Term Interest Rates
One contribution to the Fund under-performing our expectations and the benchmark
is the rise in short-term interest rates. The 2-year Treasury yield increased
from 4.19% to 5.52%, or an increase of 133 basis points. The Fund's average
maturity remained at one year during the past eight months. The longer exposure
to the bond market versus the 90-day Treasury bill was also a contributing
factor in the Fund's under-performance. Looking forward, we feel that the
Federal Reserve is finished raising interest rates. This will allow us to lock
rates in the current environment as we expect short-term rates to decline over
the next year.
Market Neutral Funds
Market Neutral strategies have experienced an exceptionally difficult period
over the past year. The market neutral funds invested in by the Jumper Strategic
Advantage Fund employ a value-based stock picking approach. Throughout most of
the year, large capitalization stocks have provided much of the market's
leadership. Investors have been buying the most expensive stocks and ignoring
the undervalued more reasonably priced names. In addition, there has been little
or no relationship between historical measures of value and stock performance.
We are disappointed in the market neutral performance; however we are not
surprised, due to the irrational characteristics of recent equity markets.
Although we have confidence in market neutral funds, they provided more exposure
to equity markets than expected. Also, we currently feel the market neutral
funds are not meeting the investment objective of The Jumper Strategic Advantage
Fund. Therefore, we have decided to liquidate our positions in market neutral
funds and focus on the fixed income markets.
Performance
As previously mentioned, the Fund's longer exposure in the bond markets and the
disappointing performance of the market neutral funds hampered The Jumper
Strategic Advantage Fund's total return. For the period ending June 30, 1999,
the Fund had a total return of .51%. The total return for the Lehman Brothers
1-Year Treasury Bellwether Government Index for the same period was 2.61%.
<PAGE>
Returns for the Period ended June 30, 1999
Since Inception --
Fund / Index Six Months October 26, 1998
------------ ---------- ------------------
Jumper Strategic Advantage Fund (0.48)% 0.51%
Lehman Brothers 1-Year Treasury
Bellwether Government Index 2.25% 2.61%
Chart
Jumper Strategic Lehman Brothers 1-Year Treasury
Date Advantage Fund Bellwether Government Index
10-26-98 $10,000.00 $10,000.00
10-31-98 $10,050.00 $10,000.00
11-30-98 $10.050.00 $10,002.00
12-31-98 $10,100.00 $10,035.01
01-31-99 $10,100.00 $10,074.14
02-28-99 $10,500.00 $10,085.22
03-31-99 $10,067.59 $10,145.74
04-30-99 $ 9,994.41 $10,183.28
05-31-99 $10,022.60 $10,211.79
06-30-99 $10,051.11 $10,260.81
This graph shows compares the value of a $10,000 investment in the Fund and the
Lehman Brothers 1-Year Treasury Bellwether Government Index on October 26, 1998
and held through June 30, 1999. The Lehman Brothers 1-Year Treasury Bellwether
Government Index is an unmanaged index representative of the average current
1-year Treasury Bill; the source of the index is Lehman Brothers Fixed Income
Research Global Family of Indices. The index return does not reflect expenses,
which have been deducted from the Fund's return. THE FUND'S RETURN REPRESENTS
PAST PERFORMANCE AND IS NOT A GUARANTEE OF FUTURE RESULTS.
Forward Outlook
Looking forward, we will continue to seek to provide our shareholders with a
total return above traditional money market funds. The market neutral strategy
will be replaced primarily with short-term fixed income products. We would like
to thank you for your continued support. We are delighted by your confidence and
look forward to serving your investment needs
Please feel free to contact us with you questions or comments.
Sincerely,
Jay Jumper
President
<PAGE>
Jumper Strategic Advantage Fund
Schedule of Investments - June 30, 1999
<TABLE>
<S> <C> <C>
Mutual Funds - 22.9% Shares Value
Barr Rosenberg Market Neutral Fund 15,481 $ 133,144
Barr Rosenberg Select Sectors Fund 14,949 154,724
Euclid Market Neutral Fund Class I 13,751 141,638
James Market Neutral Fund 130 1,207
Puget Sound Market Neutral Fund 13,063 126,317
-----------
TOTAL MUTUAL FUNDS (Cost $583,834) 557,030
-----------
Investment Limited Partnerships - 6.2%
Infinity Market Neutral Fund (Jumper Strategic
Advantage Fund owns 2.6% of this
partnership) (Cost $175,000) -- 150,041
-----------
Principal
Corporate Notes - 68.6% Amount
Carnival Corp., 5.65%, 10/15/00 $ 200,000 198,804
Delta Air Lines, Inc., 9.75%, 1/2/00 162,000 164,385
Fingerhut Cos., 7.375%, 9/15/99 250,000 250,466
Fleet Mortgage Group, Inc., 6.50%, 6/15/00 200,000 200,361
Heller Financial, Inc., 6.42%, 8/25/00 250,000 250,520
International Lease Finance Corp., 7%, 5/15/00 200,000 201,823
Paine Webber Group, Inc., 6.585%, 7/23/01 200,000 199,081
Reebok International Ltd., 6.75%, 5/15/00 200,000 201,071
-----------
TOTAL CORPORATE NOTES (Cost $1,677,210) 1,666,511
-----------
Money Market Securities - 1.1%
Firstar Treasury Fund, 3.98% (a) (Cost $27,395) 27,395 27,395
-----------
TOTAL INVESTMENTS - 98.8% (Cost $2,463,439) 2,400,977
-----------
Other assets less liabilities - 1.2% 28,164
-----------
TOTAL NET ASSETS - 100.0% $ 2,429,141
===========
</TABLE>
(a) Variable rate security; the coupon rate shown represents the rate at
June 30, 1999
See accompanying notes which are an integral part of the financial statements
<PAGE>
Jumper Strategic Advantage Fund June 30, 1999
Statement of Assets & Liabilities
Assets
Investment in securities (cost $2,463,439) $ 2,400,977
Interest receivable 30,122
------------
Total assets 2,431,099
Liabilities
Accrued investment advisory fee payable $ 1,958
---------
Total liabilities 1,958
------------
Net Assets $ 2,429,141
============
Net Assets consist of:
Paid in capital $ 2,536,149
Accumulated net realized gain (loss) on investments (44,546)
Net unrealized depreciation on investments (62,462)
------------
Net Assets, for 1,236,575 shares $ 2,429,141
============
Net Asset Value
Net Assets
Offering price and redemption price per share ($2,429,141/1,236,575) $ 1.96
==========
See accompanying notes which are an integral part of the financial statements
<PAGE>
Jumper Strategic Advantage Fund
Statement of Operations for the period October 26, 1998
(Commencement of Operations) to June 30, 1999
Investment Income
Dividend income $ 14,689
Interest income 137,553
------------
Total Income 152,242
Expenses
Investment advisory fee $ 24,563
Federal excise tax 1,878
Trustees' fees 1,392
-----------
Total expenses before reimbursement 27,833
Reimbursed expenses (3,270)
-----------
Total operating expenses 24,563
------------
Net Investment Income 127,679
------------
Realized & Unrealized Gain (Loss)
Net realized gain (loss) on investment securities (44,546)
Change in net unrealized appreciation (depreciation)
on investment securities (62,462)
-----------
Net gain (loss) on investment securities (107,008)
------------
Net increase in net assets resulting from operations $ 20,671
============
See accompanying notes which are an integral part of the financial statements
<PAGE>
Jumper Strategic Advantage Fund
Statement of Changes in Net Assets for the period October 26, 1998 (Commencement
of Operations) to June 30, 1999
Increase (Decrease) in Net Assets
Operations
Net investment income $ 127,679
Net realized gain (loss) on investment securities (44,546)
Change in net unrealized appreciation (depreciation) (62,462)
------------
Net increase in net assets resulting from operations 20,671
------------
Distributions to shareholders
From net investment income (127,679)
------------
Share Transactions
Net proceeds from sale of shares 5,408,500
Shares issued in reinvestment of distributions 127,679
Shares redeemed (3,000,030)
------------
Net increase in net assets resulting
from share transactions 2,536,149
------------
Total increase in net assets 2,429,141
------------
Net Assets
Beginning of period -
------------
End of period $ 2,429,141
============
See accompanying notes which are an integral part of the financial statements
<PAGE>
Jumper Strategic Advantage Fund
Financial Highlights for the period October 26, 1998
(Commencement of Operations) to June 30, 1999
Selected Per Share Data
Net asset value, beginning of period $ 2.00
--------------
Income from investment operations
Net investment income 0.05
Net realized and unrealized gain (loss) (0.04)
--------------
Total from investment operations 0.01
--------------
Less distributions
from net investment income (0.05)
--------------
Net asset value, end of period $ 1.96
==============
Total Return (b) 0.51%
Ratios and Supplemental Data
Net assets, end of period (000) $2,429
Ratio of expenses to average net assets 0.75% (a)
Ratio of expenses to average net assets
before reimbursement 0.85% (a)
Ratio of net investment income to
average net assets 3.89% (a)
Ratio of net investment income to
average net assets before reimbursement 3.79% (a)
Portfolio turnover rate 255.18% (a)
(a) Annualized
(b) For periods of less than a full year, total returns are not annualized.
See accompanying notes which are an integral part of the financial statements
<PAGE>
Jumper Strategic Advantage Fund
Notes To Financial Statements
June 30, 1999
NOTE 1. ORGANIZATION
Jumper Strategic Advantage Fund (the "Fund") was organized as a series of
the AmeriPrime Funds, an Ohio business trust (the "Trust"), on February 26, 1998
and commenced operations on October 26, 1998. The Fund is registered under the
Investment Company Act of 1940, as amended, as a diversified, open-end
management investment company, whose investment objective is to provide a
greater total return than may generally be earned in money market funds while
attempting to limit general market risk. The Trust Agreement permits the
trustees to issue an unlimited number of shares of beneficial interest of
separate series without par value. The Fund currently offers two classes of
shares: Institutional Class and Investor Class; only Institutional Class shares
of the Fund were outstanding as of June 30, 1999.
NOTE 2. SIGNIFICANT ACCOUNTING POLICIES
The following is a summary of significant accounting policies followed by
the Fund in the preparation of its financial statements.
Securities Valuation - Securities 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 Fund's
board of trustees. Short-term investments maturing in sixty days or less are
valued at amortized cost, which approximates fair market value.
Federal Income Taxes - The Fund intends to qualify each year as a "regulated
investment company" under the Internal Revenue Code of 1986, as amended. By so
qualifying, the Fund will not be subject to federal income taxes to the extent
that it distributes substantially all of its net investment income and any
realized capital gains. The Fund intends to pay dividends to avoid all income
and excise taxes; however, the Fund paid a small excise tax for the taxable
period October 26, 1998 (commencement of operations) to December 31, 1998.
Dividends and Distributions - The Fund intends to distribute substantially all
of its net investment income as dividends to its shareholders on a daily basis
and to pay such dividends monthly. The Fund intends to distribute its net
long-term capital gains and its net short term capital gains at least once a
year.
Other - The Fund follows industry practice and records security transactions on
the trade date. The specific identification method is used for determining gains
or losses for financial statements and income tax purposes. Dividend income is
recorded on the ex-dividend date and interest income is recorded on an accrual
basis. Discounts and premiums on securities purchased are amortized over the
life of the respective securities.
<PAGE>
Jumper Strategic Advantage Fund
Notes To Financial Statements
June 30, 1999 - continued
NOTE 3. FEES AND OTHER TRANSACTIONS WITH AFFILIATES
The Fund retains The Jumper Group, Inc. (the "Advisor") to manage the
Fund's investments. Jay Colton Jumper, the Fund's portfolio manager, is
primarily responsible for the day to day management of the Fund's portfolio.
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 expenses of the Fund except brokerage commissions, taxes, interest,
fees and expenses of non-interested person trustees, and extraordinary expenses.
As compensation for its management services and agreement to pay the Fund's
expenses, the Fund is obligated to pay the Advisor a fee computed and accrued
daily and paid monthly at an annual rate of 0.75% of the average daily net
assets of the Fund. It should be noted that most investment companies pay their
own operating expenses directly, while the Fund's expenses, except those
specified above, are paid by the Advisor. For the period from October 26, 1998
(commencement of operations) through June 30, 1999, the Advisor has received a
fee of $24,563 from the Fund. The Advisor has voluntarily agreed to reimburse
other expenses to the extent necessary to maintain total operating expenses at
the rate of 0.75%. For the period October 26, 1998 (commencement of operations)
through June 30, 1999, the Advisor reimbursed expenses of $1,392. There is no
assurance that such reimbursement will continue in the future.
The Fund retains AmeriPrime Financial Services, Inc. (the "Administrator")
to manage the Funds business affairs and provide the Fund with administrative
services, including all regulatory reporting and necessary office equipment and
personnel. For the period from October 26, 1998 (commencement of operations)
through June 30, 1999, the Administrator received fees of $20,000 from the
Advisor for administrative services provided to the Fund. The Administrator
reimbursed the Fund for federal excise taxes of $1,878.
The Fund retains AmeriPrime Financial Securities, Inc. (the Distributor) to
act as the principal distributor of the Fund's shares. There were no payments
made to the Distributor for the period from October 26, 1998 (commencement of
operations) to June 30, 1999. Certain members of management of the Administrator
and the Distributor are also members of management of the AmeriPrime Trust.
NOTE 4. SHARE TRANSACTIONS
As of June 30, 1999, there was an unlimited number of authorized shares for
the Fund. Paid in capital at June 30, 1999 was $2,536,149.
<PAGE>
Jumper Strategic Advantage Fund
Notes To Financial Statements
June 30, 1999 - continued
NOTE 4. SHARE TRANSACTIONS - continued
Transactions in shares were as follows:
For the period October 26, 1998 (Commencement
of Operations) to June 30, 1999
Shares Dollars
Shares sold 2,702,357 $5,408,500
Shares issued in
reinvestment
of dividends 64,846 127,679
Shares
redeemed (1,530,628) (3,000,030)
--------- ---------
1,236,575 $2,536,149
========= =========
NOTE 5. INVESTMENTS
For the period from October 26, 1998 (commencement of operations) through
June 30, 1999, purchases and sales of investment securities, other than
short-term investments, aggregated $6,983,478 and $4,474,556, respectively. As
of June 30, 1999, the gross unrealized appreciation for all securities totaled
$2,562 and the gross unrealized depreciation for all securities totaled $65,024
for a net unrealized depreciation of $62,462. The aggregate cost of securities
for federal income tax
purposes at June 30, 1999 was $2,463,439.
NOTE 6. ESTIMATES
Preparation of financial statements in accordance with generally accepted
accounting principles requires management to make estimates and assumptions that
affect the reported amounts of assets and liabilities and the reported amounts
of revenues and expenses during the reporting period. Actual results could
differ from those estimates.
<PAGE>
Jumper Strategic Advantage Fund
Notes To Financial Statements
June 30, 1999 - continued
NOTE 7. RELATED PARTY TRANSACTIONS
The Advisor is not a registered broker-dealer of securities and thus does
not receive commissions on trades made on behalf of the Fund. The beneficial
ownership, either directly or indirectly, of more than 25% of the voting
securities of a Fund creates a presumption of control of the Fund, under Section
2(a)(9) of the Investment Company Act of 1940. As of June 30, 1999, the Arthur
F. DeMoss Foundation beneficially owned more than 83% of the Fund.
NOTE 8. YEAR 2000 ISSUE
Like other mutual funds, financial and business organizations and
individuals around the world, the Fund could be adversely affected if the
computer systems used by the Advisor, Administrator or other service providers
do not properly process and calculate date-related information and data from and
after January 1, 2000. This is commonly known as the "Year 2000 Issue." The
Advisor and Administrator have taken steps that they believe are reasonably
designed to address the Year 2000 Issue with respect to computer systems that
are used and to obtain reasonable assurances that comparable steps are being
taken by each of the Fund's major service providers. At this time, however,
there can be no assurance that these steps will be sufficient to avoid any
adverse impact on the Fund. In addition, the Advisor cannot make any assurances
that the Year 2000 Issue will not affect the companies in which the Fund invests
or worldwide markets & economies.
