Dear Fellow Shareholders:
Investment Results - Fiscal Year Ended September 30, 2000
The Westcott Nothing But Net Fund (the "FUND", or "NETAX") ended its fiscal year
with total losses of 41.23% and 41.42% (year to date) for Class A shares and
Class I shares, respectively, and with net asset values at fiscal year end of
$5.83 and $5.77 per share, respectively. The returns for each class for year to
date 2000 and for the period from inception date to December 9, 2000 are set
forth below.
<TABLE>
<CAPTION>
GROWTH OF $10,000
DECEMBER 9, 1999 (AT INCEPTION) TO SEPTEMBER 30, 2000
<S> <C> <C> <C> <C>
PERIODS ENDING NETAX - I TSC INTERNET
9/30/2000 NETAX - A S&P 500 INDEX
----------------------- ------------------- ------------- ----------------- -----------------
YEAR TO DATE 2000 -44.17% -41.42% -1.40% -38.19%
INCEPTION TO DATE -44.62% -42.30% 4.41% -32.81%
</TABLE>
Date Westcott Nothing But TheStreet.com S&P 500 Index
Net - $5,538 - $6,719 -$10,441
12/9/99 9,500.00 10,000.00 10,000.00
12/31/99 9,424.00 10,869.71 10,588.60
1/31/00 9,205.50 9,906.41 10,056.66
2/29/00 11,495.00 11,137.20 9,866.48
3/31/00 9,158.00 10,423.60 10,831.10
4/30/00 6,545.50 8,427.90 10,505.36
5/31/00 5,491.00 7,453.58 10,289.70
6/30/00 6,004.00 7,926.33 10,543.41
7/31/00 5,548.00 6,839.03 10,378.32
8/31/00 6,194.00 7,913.34 11,022.59
9/30/00 5,538.50 6,719.08 10,441.00
Date Westcott Nothing But TheStreet.com S&P 500 Index
Net - $5,770 - $6,719 - $10,441
12/9/99 10,000.00 10,000.00 10,000.00
12/31/99 9,850.00 10,869.71 10,588.60
1/31/00 9,510.00 9,906.41 10,056.66
2/29/00 11,970.00 11,137.20 9,866.48
3/31/00 9,590.00 10,423.60 10,831.10
4/30/00 6,840.00 8,427.90 10,505.36
5/31/00 5,730.00 7,453.58 10,289.70
6/30/00 6,270.00 7,926.33 10,543.41
7/31/00 5,800.00 6,839.03 10,378.32
8/31/00 6,460.00 7,913.34 11,022.59
9/30/00 5,770.00 6,719.08 10,441.00
o Past performance is not predictive of future performance.
o The Nothing But Net Fund's historical results are net of all
expenses compared with the S&P 500 and TheStreet.com Internet
indexes, both of which have no fees. Investors should keep in mind
when trying to achieve benchmark returns that investment
management fees, transaction costs, and execution costs will be
incurred.
o The S&P 500 index is an unmanaged index of 500 selected stocks,
many of which are listed on the NYSE. The index is adjusted for
dividends and weighted toward stocks with large market
capitalizations. The Street.com Internet index is a widely
followed index of Internet stocks. Since the Internet sector is
fairly new, there are several Internet indexes to choose from.
o Inception date is December 9, 1999.
We welcome all new shareholders and look forward to furthering the investment
objectives of all of our shareholders.
INVESTMENT APPROACH
To review, our approach to managing the Westcott Nothing But Net Fund is to
achieve long-term growth of capital by investing only in Internet and
Internet-related companies. The Fund's structural investment approach provides
exposure to all sectors of the Internet, literally from the wall plug to
software to security to e-commerce to online consumer services and transactions.
The Fund is designed to provide a pure and comprehensive Internet investment
that will reflect the structure, trends and growth of the Internet and
Internet-related companies.
PERFORMANCE REVIEW
We remind investors that the Fund is a sector fund, which makes it inherently
more risky than a market index. We compared the performance of NETAX with the
S&P 500 index simply because the S&P 500 is generally used as a performance
benchmark. In the year 2000, the Internet sector was down across the board. All
of the Internet-related funds posted negative returns. Rising interest rates
combined with investors' desires to see positive earnings now have made for a
disappointing year in the Internet sector. The stronger U.S. dollar and the
wavering Euro have also added downward pressure on companies with international
exposure.
Internet stocks in general saw their peaks in mid-March when the Fund was up
over 20% year to date. However, a dismal last half of the year laden with Fed
rate hikes led to an overall negative return of 38.19% year to date.
In light of the performance of the Internet sector in general, NETAX has no
dividends or capital gains to report this year.
COMMENTARY AND OUTLOOK
As we entered the year 2000, the demand for Internet company stocks seemed
endless. The IPO market was hot and all one needed was a good story to see their
stock price soar. The bubble burst in the spring and what followed was nothing
more than a meltdown that served as a wake-up call to investors. More recently,
we have witnessed a second freefall in the Internet sector that has further
shaken investors.
The spring sell off was viewed as a useful, if somewhat painful, mechanism for
thinning out the weak and undeserving. Companies hurt the most last spring had
three things in common: lack of profits, explosive initial public offerings and
valuations that investors quickly termed as "unrealistic". The more recent
weakness has deflated the price of companies that didn't share these traits,
making the decline even more difficult.
The heart of this problem is that most Internet businesses have been resistant
to traditional valuation. Traditional measures of sales, assets, and profits
largely fail, since most dot-com companies have no net income, no hard assets,
and few inventories. Once this situation became obvious to investors the entire
sector began to sink and the decline began to feed on itself. It now looks as
though the market isn't quite finished correcting and the long-awaited fall
rally in many Internet companies may be more fervent hope than foregone
conclusion.
Does this mean that there will be no fall rally? Perhaps, if the market for
Internet stocks doesn't turn around soon, any run-up at the end of the year may
merely get us back to where we are now. The good news is that the most recent
selling is not as bad as last spring's which may be a signal that the end of the
decline is near.
Looking ahead, we have sought to concentrate on the infrastructure related to
the Internet. Our portfolio is significantly concentrated in those companies
that have sound earnings momentum going forward. We believe that the Internet is
permanent and that significant profits will be made in the next few years. By
focusing on companies with sound earnings growth, we avoid any continued price
compression due to events that impacted the market last spring.
All of a sudden, earnings matter. Internet companies that can show positive
earnings momentum will recover as the market begins to recover. We concentrate
on companies that have a track record of positive earnings surprises in the
Internet and Internet-related technology areas because we believe they will
benefit from restored confidence in this sector and lead to future
profitability. Our approach is to select the quality companies and hold for the
long-term. As such, we seek to avoid short-term trading strategies. We are
willing to accept the volatility of the market in order to give our stocks time
to prove themselves. We believe that the market has had a significant correction
and that the next move in the cycle is to the upside.
As always, your questions and comments are welcome. We appreciate your
confidence in the Westcott Nothing But Net Fund.
Sincerely,
Aegis Asset Management, Inc.
FUND INVESTMENT
SHARES OF THE FUND ARE SOLD ON A CONTINUOUS BASIS.
THROUGH THE FUND'S TRANSFER AGENT, UNIFIED FUND SERVICES, YOU MAY INVEST ANY
AMOUNT YOU CHOSE AS OFTEN AS YOU WISH, SUBJECT TO A MINIMUM INITIAL INVESTMENT
OF $1,000 ($200 FOR QUALIFIED RETIREMENT ACCOUNTS AND MEDICAL SAVINGS ACCOUNTS).
THE MINIMUM INITIAL INVESTMENT IN THE FUND IS $50 FOR SHAREHOLDERS PARTICIPATING
IN THE CONTINUING AUTOMATIC INVESTMENT PLAN. SHARES MAY BE PURCHASED THROUGH
SECURITIES DEALERS WHO HAVE A SALES AGREEMENT WITH AMERIPRIME FINANCIAL
SECURITIES, INC., THE FUND'S DISTRIBUTOR. PURCHASES CAN BE MADE BY MAIL OR BY
BANK WIRE (PLEASE SEE PROSPECTUS FOR MORE INFORMATION).
<PAGE>
<TABLE>
<CAPTION>
<S> <C> <C>
Westcott Nothing But Net Fund
Schedule of Investments - September 30, 2000
Common Stocks - 89.6% Shares Value
Cable/Wireless Equipment - 4.1%
Nokia Corp. (c) 1,600 $ 63,700
-----------------
-----------------
Computer Equipment - 7.0%
International Business Machine Corp. 500 56,250
Sun Microsystems, Inc. (a) 450 52,537
-----------------
-----------------
108,787
-----------------
-----------------
Computer Programming - 5.2%
Verisign, Inc. Com (a) 400 81,025
-----------------
-----------------
Computer Systems - 15.5%
Ariba, Inc. (a) 700 100,286
Check Point Software Technologies LTD. (a) (c) 400 63,000
Exodus Communications, Inc. (a) 1,600 79,000
-----------------
-----------------
242,286
-----------------
-----------------
Financial Services Technology - 5.7%
Knight/Trading Group, Inc. (a) 2,500 90,000
-----------------
-----------------
Medical Equipment - 5.1%
Newport Corp. 500 79,633
-----------------
-----------------
Online Information - 8.9%
America Online, Inc. (a) 800 43,000
IDT Corp. (a) 1,300 50,538
Yahoo, Inc. (a) 500 45,500
-----------------
-----------------
139,038
-----------------
-----------------
Phone/Network Equipment - 8.9%
CISCO Systems, Inc. (a) 900 49,725
JDS Uniphase Corp. (a) 500 47,344
Sycamore Networks, Inc. (a) 400 43,200
-----------------
-----------------
140,269
-----------------
-----------------
Semiconductors - 5.7%
Intel Corp. 900 37,406
Linear Technology Corp. 400 25,900
Maxim Integrated Products, Inc. (a) 325 26,142
-----------------
-----------------
89,448
-----------------
-----------------
Software - 18.2%
Inktomi Corp. (a) 265 30,210
Macromedia, Inc. (a) 830 67,074
Microsoft Corp. (a) 800 48,250
Oracle Corp. (a) 500 39,375
Realnetworks Inc. (a) 1,800 71,550
Veritas Software (a) 200 28,400
-----------------
-----------------
284,859
-----------------
-----------------
Telecommunications - 4.6%
Qwest Communications International, Inc. (a) 825 39,703
Williams Communications Group (a) 1,600 32,000
-----------------
-----------------
71,703
-----------------
-----------------
Westcott Nothing But Net Fund
Schedule of Investments - September 30, 2000 - continued
Common Stocks - continued Shares Value
Wireless Communications - 0.7%
Winstar Communications, Inc. (a) 700 $ 10,850
-----------------
-----------------
TOTAL COMMON STOCKS (Cost $1,312,155) 1,401,598
-----------------
-----------------
Principal
Value Value
Money Market Securities - 10.5%
Firstar Treasury Fund, 5.47% (b) (Cost $163,508) 163,508 163,508
-----------------
-----------------
TOTAL INVESTMENTS - 100.1% (Cost $1,475,663) 1,565,106
-----------------
-----------------
Liabilities in excess of other assets - (0.1)% (1,231)
-----------------
-----------------
TOTAL NET ASSETS - 100.0% $ 1,563,875
=================
(a) Non-income producing
(b) Variable rate security; the coupon rate shown represents the rate at September 29, 2000.
(c) American Depository Receipt
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
<S> <C> <C>
Westcott Nothing But Net Fund September 30, 2000
Statement of Assets & Liabilities
Assets
Investment in securities (cost $1,475,663) $ 1,565,106
Cash 813
Interest receivable 971
------------------
Total assets 1,566,890
Liabilities
Accrued investment advisory fee $ 2,248
Accrued distribution fee 432
Accrued trustees' fees 335
-----------------
Total liabilities 3,015
------------------
Net Assets $ 1,563,875
==================
Net Assets consist of:
Paid in capital $ 2,893,441
Accumulated net realized loss on investments (1,419,009)
Net unrealized appreciation on investments 89,443
------------------
Net Assets $ 1,563,875
==================
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Westcott Nothing But Net Fund
Statement of Operations for the Period December 9, 1999
(Commencement of Operations) to September 30, 2000
<S> <C> <C>
Investment Income
Dividend income $ 119
Interest income 6,480
---------------
Total Income 6,599
Expenses
Investment advisory fee $ 28,480
Distribution fees - Class A 432
Trustee's fees 2,564
------------------
Total expenses before reimbursement 31,476
Reimbursed expenses (2,229)
------------------
Total operating expenses 29,247
---------------
Net Investment Loss (22,648)
---------------
Realized & Unrealized Gain (Loss)
Net realized loss on investment securities (1,419,009)
Change in net unrealized appreciation
on investment securities 89,443
------------------
Net realized and unrealized loss on investment securities (1,329,566)
---------------
Net decrease in net assets resulting from operations $(1,352,214)
===============
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Westcott Nothing But Net Fund
Statement of Changes in Net Assets for the period December 9, 1999
(Commencement of Operations) to September 30, 2000
<S> <C>
Increase (Decrease) in Net Assets
Operations
Net investment loss $ (22,648)
Net realized loss on investment securities (1,419,009)
Change in net unrealized appreciation 89,443
-----------------
-----------------
Net decrease in net assets resulting from operations (1,352,214)
-----------------
Distributions to shareholders
From net investment income -
Return of capital -
From net realized gain -
-----------------
Total distributions -
Share Transactions - net increase
Class A 289,950
Class I 2,626,139
-----------------
Net increase in net assets resulting
from share transactions 2,916,089
-----------------
-----------------
Total increase in net assets 1,563,875
-----------------
Net Assets
Beginning of period -
-----------------
End of period [including accumulated net $ 1,563,875
=================
investment income of $0]
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Westcott Nothing But Net Fund
Class A
Financial Highlights for the period December 9, 1999
(Commencement of Operations) to September 30, 2000
<S> <C>
Selected Per Share Data
Net asset value, beginning of period $ 10.00
--------------
Income from investment operations
Net investment loss (0.10)
Net realized and unrealized loss (4.07)
--------------
Total from investment operations (4.17)
--------------
Less distributions:
Distributions from net investment income -
Distributions from net realized gains -
--------------
Total distributions -
--------------
--------------
Net asset value, end of period $ 5.83
==============
Total Return (41.70)%(a)
Ratios and Supplemental Data
Net assets, end of period (000) $169
Ratio of expenses to average net assets 1.97% (b)
Ratio of expenses to average net assets
before reimbursement 2.09% (b)
Ratio of net investment income(loss) to
average net assets (1.61)% (b)
Ratio of net investment income (loss) to
average net assets before reimbursement (1.73)% (b)
Portfolio turnover rate 190.14% (b)
(a) For periods of less than a full year, total return is not annualized.
(b) Annualized
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Westcott Nothing But Net Fund
Class I
Financial Highlights for the period December 9, 1999
(Commencement of Operations) to September 30, 2000
<S> <C>
Selected Per Share Data
Net asset value, beginning of period $ 10.00
--------------
Income from investment operations
Net investment loss (0.08)
Net realized and unrealized loss (4.15)
--------------
Total from investment operations (4.23)
--------------
Less distributions:
Distributions from net investment income -
Distributions from net realized gains -
--------------
Total distributions -
--------------
--------------
Net asset value, end of period $ 5.77
==============
Total Return (42.30)%(a)
Ratios and Supplemental Data
Net assets, end of period (000) $1,395
Ratio of expenses to average net assets 1.72% (b)
Ratio of expenses to average net assets
before reimbursement 1.86% (b)
Ratio of net investment income(loss) to
average net assets (1.32)% (b)
Ratio of net investment income (loss) to
average net assets before reimbursement (1.46)% (b)
Portfolio turnover rate 190.14% (b)
(a) For periods of less than a full year, total return is not annualized.
(b) Annualized
</TABLE>
<PAGE>
WESTCOTT NOTHING BUT NET FUND
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 2000
NOTE 1. ORGANIZATION
The Westcott Nothing But Net Fund (the "Fund") was organized as a
diversified series of AmeriPrime Funds (the "Trust") on September 29, 1999 and
commenced operations on December 9, 1999. 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 Fund's investment
objective is to provide long-term growth of capital. The Trust Agreement permits
the Trustees to issue an unlimited number of shares of beneficial interest
without par value.
The Fund currently consists of two classes of shares, Class A and Class I,
each of which has equal rights as to assets and voting privileges except that
each class has different distribution expenses. The public offering price for
class A shares is the determined net asset value plus a sales charge.
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 opinion of the Adviser, the last bid price does not accurately
reflect the current value of the security. All other securities for which
over-the-counter market quotations are readily available are valued at their
last bid price. When market quotations are not readily available, when the
Adviser determines the last bid price does not accurately reflect the current
value, or when restricted securities are being valued, such securities are
valued as determined in good faith by the Adviser, in conformity with guidelines
adopted by and subject to review of the Board.
Fixed-income securities generally are valued by using market quotations,
but may be valued on the basis of prices furnished by a pricing service when the
Adviser believes such prices accurately reflect the fair market values of such
securities. A pricing service utilizes electronic data processing techniques
based on yield spreads relating to securities with similar characteristics to
determine prices for normal institutional-size trading units of debt securities
without regard to sale or bid prices. When prices are not readily available from
a pricing service, or when restricted or illiquid securities are being valued,
securities are valued at fair value as determined in good faith by the Adviser,
subject to review by 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.
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 comply with federal tax
rules regarding distribution of substantially all its net investment income and
capital gains. These rules may cause multiple distributions during the course of
the 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
WESTCOTT NOTHING BUT NET FUND
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 2000 - CONTINUED
NOTE 2. SIGNIFICANT ACCOUNTING POLICIES - CONTINUED
accrual basis. Discounts and premiums on securities purchased are amortized over
the life of the respective securities. Generally accepted accounting principles
require that permanent financial reporting tax differences relating to
shareholder distributions be reclassified to paid-in capital.
NOTE 3. FEES AND OTHER TRANSACTIONS WITH AFFILIATES
Aegis Management, Inc., 230 Westcott St., Suite 1, Houston, Texas 77007,
serves as investment adviser to the Fund. The adviser was organized as a Texas
corporation in 1933. The adviser manages large capitalization equity, medium
capitalization equity, balanced and fixed income portfolios for a variety of
tax-exempt and taxable clients. Effective September 18, 2000, the investment
decisions for the Fund are made by a committee of the adviser, which is
primarily responsible for the day-to-day management of the Fund's portfolio.
Prior to that, Layng Guerriero was responsible for the day-to-day management of
the Fund's portfolio.
Under the terms of the management agreement (the "Agreement"), the Adviser
manages the Fund's investments subject to approval of the Board of Trustees and
pays all of the expenses of the Fund except brokerage, taxes, borrowing costs
(such as (a) interest and (b) dividend expenses on securities sold short), 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 Adviser a fee (based on average daily
net assets) of 1.70% computed and accrued daily and paid monthly. For the period
from December 9, 1999 (commencement of operations) through September 30, 2000,
the Adviser received a fee of $28,480 from the Fund. The Adviser has voluntarily
agreed to reimburse other expenses to the extent necessary to maintain total
operating expenses at the rate of 1.97%, and 1.72% for A and I shares,
respectively. For the period from December 9, 1999 (commencement of operations)
through September 30, 2000, the Adviser reimbursed expenses of $2,229. There is
no assurance that such reimbursement will continue in the future.
On behalf of the Class A shares, the fund has adopted a distribution fee
(the "Distribution Plan") under Rule 12b-1 of the 1940 Act. Under the
Distribution Plan, the Fund is authorized to pay a fee in an amount not to
exceed on an annual basis 0.25% of the average daily net asset value of the
Class A Shares. For the period from December 9, 1999 (commencement of
operations) through September 30, 2000, the Fund incurred distribution expenses
of $432 for Class A shares. For the period from December 9, 1999 (commencement
of operations) through September 30, 2000, Westcott Securities LLC, a related
broker/dealer under common relationship and control, which is registered with
the Securities & Exchange Commission, received distribution fees of $17 from the
Fund for expenses related to the sale of Fund shares.
The Fund retains AmeriPrime Financial Services, Inc. (the "Administrator"),
a wholly owned subsidiary of Unified Financial Services, Inc., to manage the
Fund's business affairs and provide the Fund with administrative services,
including all regulatory reporting and necessary office equipment and personnel.
The Administrator receives a monthly fee from the Adviser equal to an annual
rate of 0.10% of the Fund's assets under $50 million, 0.075% of the Fund's
assets from $50 million to $100 million, and 0.050% of the Fund's assets over
$100 million (subject to a minimum fee of $2,500 per month). For the period from
December 9, 1999 (commencement of operations) through September 30, 2000, the
Administrator received fees of $24,390 from the Adviser for administrative
services provided to the Fund.
WESTCOTT NOTHING BUT NET FUND
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 2000 - CONTINUED
NOTE 3. FEES AND OTHER TRANSACTIONS WITH AFFILIATES - CONTINUED
The Fund retains Unified Fund Services, Inc. ("Unified"), a wholly owned
subsidiary of Unified Financial Services, Inc., to act as the Fund's transfer
agent and fund accountant. For its services as transfer agent, Unified receives
a monthly fee from the Adviser of $1.20 per shareholder (subject to a minimum
monthly fee of $750). For the period from December 9, 1999 (commencement of
operations), Unified received fees of $18,377 from the Adviser for transfer
agent services. For its services as fund accountant, Unified receives an annual
fee from the Adviser equal to 0.0275% of the Fund's assets up to $100 million,
0.0250% of the Fund's assets from $100 million to $300 million and 0.0200% of
the Fund's assets over $300 million (subject to various monthly minimum fees,
the maximum being $2,000 per month for assets of $20 to $100 million). For the
period from December 9, 1999 (commencement of operations) through September 30,
2000, Unified received fees of $14,524 from the Adviser for fund accounting
services.
The Fund retains AmeriPrime Financial Securities, Inc. ("the Distributor"),
a wholly owned subsidiary of Unified Financial Services, Inc. to act as the
principal distributor of the Fund's shares. For the period from December 9, 1999
(commencement of operations) through September 30, 2000, the Distributor
received distribution fees of $2 from the Fund for expenses related to the sale
of Fund shares.
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 September 30, 2000, there were an unlimited number of authorized
shares for the Fund. Paid in capital at September 30, 2000 was $2,893,441.
Transactions in shares were as follows:
For the period December 9, 1999
(Commencement of Operaitons) to September 30, 2000
Shares Dollars
Class A:
Shares sold 57,096 $578,163
Shares issued from
reinvested Dividends 0 0
Shares redeemed (28,144) (288,213)
---------------------------------------
---------------------------------------
28,952 $289,950
=======================================
=======================================
For the period December 9, 1999
(Commencement of Operaitons) to September 30, 2000
Shares Dollars
Class I:
Shares sold 285,801 $2,999,392
Shares issued from
reinvested Dividends 0 0
Shares redeemed (44,197) (373,253)
---------------------------------------
---------------------------------------
241,604 $2,626,139
=======================================
WESTCOTT NOTHING BUT NET FUND
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 2000 - CONTINUED
NOTE 5. INVESTMENTS
For the period from December 9, 1999 (commencement of operations) through
September 30, 2000, purchases and sales of investment securities, other than
short-term investments, aggregated $5,375,161 and $2,643,997, respectively. As
of September 30, 2000, the gross unrealized appreciation for all securities
totaled $228,642 and the gross unrealized depreciation for all securities
totaled $139,199 for a net unrealized appreciation of $89,443. The aggregate
cost of securities for federal income tax purposes at September 30, 2000 was
$1,475,663.
NOTE 6. ESTIMATES
Preparation of financial statements in accordance with generally accepted
accounting principles requires management to make estimates and assumptions that
affect the reported amounts of assets and liabilities and the reported amounts
of revenues and expenses during the reporting period. Actual results could
differ from those estimates.
NOTE 7. RELATED PARTY TRANSACTIONS
The Adviser is not a registered broker-dealer of securities, but is
affiliated with Westcott Securities, LLC. Westcott Securities, LLC can receive
commissions on trades made on behalf of the Fund. For the period from December
9, 1999 (commencement of operations) through September 30, 2000, Westcott
Securities LLC, received brokerage of $30,288 from 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 September 30,
2000, Margaret Guerriero beneficially owned in aggregate more than 45% of Class
A Shares of the Fund and, Eckhard Pfeiffer beneficially owned in aggregate more
than 44% of Class I Shares of the Fund.
NOTE 8. SUBSEQUENT EVENTS
Effective November 16, 2000 the Fund changed its name from the Westcott
Nothing But Net Fund to the Westcott Technology Fund. The Board of Trustees
approved this name change on August 29, 2000.
Effective October 12, 2000, AmeriPrime Financial Services, Inc. and Unified
Fund Services, Inc., both wholly owned subsidiaries of Unified Financial
Services, Inc., merged with one another. The result of this merger is now
Unified Fund Services, Inc., still a wholly owned subsidiary of Unified
Financial Services, Inc.
<PAGE>
INDEPENDENT AUDITOR'S REPORT
To The Shareholders and
Board of Trustees
Westcott Nothing But Net Fund (a series of the AmeriPrime Funds)
We have audited the accompanying statement of assets and liabilities of the
Westcott Nothing But Net Fund, including the schedule of portfolio investments,
as of September 30, 2000, and the related statement of operations, the statement
of changes in net assets, and the financial highlights for the period from
December 9, 1999 to September 30, 2000 in the period then ended. These financial
statements and financial highlights are the responsibility of the Fund's
management. Our responsibility is to express an opinion on these financial
statements and financial highlights based on our audits.
We conducted our audit in accordance with generally accepted auditing standards.
Those standards require that we plan and perform the audit to obtain reasonable
assurance about whether the financial statements and financial highlights are
free of material misstatement. An audit includes examining, on a test basis,
evidence supporting the amounts and disclosures in the financial statements. Our
procedures included confirmation of investments and cash held as of September
30, 2000 by correspondence with the custodian. An audit also includes assessing
the accounting principles used and significant estimates made by management, as
well as evaluating the overall financial statement presentation. We believe that
our audit provide a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of the
Westcott Nothing But Net Fund as of September 30, 2000, the results of its
operations, the changes in its net assets and the financial highlights for the
period from December 9, 1999 to September 30, 2000, in the period then ended, in
conformity with generally accepted accounting principles.
McCurdy & Associates CPA's, Inc.
Westlake, Ohio 44145
October 19, 2000
